LTGL Info received today from them: It's still a sleeper.We'll see how long!
Jimbo
ject:
Liteglow
Date:
Wed, 5 Nov 1997 11:22:15 -0500
LiteGlow
continues to increase
revenues and earnings
l Recent Trading Range 16-23 Cents
l Forecast 1998 Earnings 8-11 Cents per Share
THE COMPANY
Liteglow Industries, Inc. (OTC BB: LTGL) was organized to design,
manufacture and market a diverse line of automotive aftermarket accessories
and specialty products under the Liteglow trademark.
The Company initially focused its efforts on developing a line of 12-volt
automotive accessories designed to enhance vehicle appearance, including
neon license plate frames and neon under-car kits. Since this initial
product line, President Spencer Krumholz, with more than 30 years of
automotive 12-volt experience, has installed an in-house graphic and
product development division that is headed by Lou Wiener, a 35 year
veteran in the product development and package design field.
ADVANCED PRODUCTS
As a result of this collaboration, Liteglow Industries has developed new
and improved products in the neon lighting area. After two years of intense
research, a vast improvement was achieved in the development of neon light
rods with built-in quality transformers. This innovation brings new
marketing opportunities, not only in passenger car market, but also enables
Liteglow to expand the market of this product line to include vans,
trucks, buses and limousines.
The Company's new under-car light kits are easier to install than their
predecessors, and colors can be mixed and matched for super custom
installations.
The Black Light, a new product line, has been introduced. It is a revived,
traditional light rod that appears to make color glow in the dark.
Glow Dice, internally lit dice being launched at the automotive Aftermarket
Show in Las Vegas in November, are expected to be a major hit and could
reintroduce the 50s - 70s craze of dice swinging from the rear view mirror
- this time "lit".
Liteglow's new Home Adaptor Kit is another innovation in product design, in
that it will allow the use of any Liteglow neon 12-volt product to be used
in the home. This product will expand the marketing base to the home
theater and entertainment center market, as well as mood lighting needs for
various areas of the home.
Other products include driving light kits, fog light kits, neon antenna
rods, neon shift knobs, polished wood and stitched leather shift knobs,
auto and strobe lights.
The Company's aggressive policy of product development and acquisition with
outstanding consumer packaging will be the keystone of Liteglow Industries'
development into the 21st century.
THE
MARKET
Management at Liteglow Industries know and understand their market. The
Company has a stable base of more than 2,500 customers, approximately 700
of which are wholesalers and independent retailers of specialty automotive
products, such as Circuit City, Nobody Beats the Whiz and JC Whitney.
At the November, 1996 Mobile Electronics Show in Atlanta, the Company
introduced a new space age line of halogen driving and fog lights in full
color packaging. These lighting products are now sold in major discount and
chain stores, as well as specialty automotive and electronics stores. In
the November, 1997 Automotive Aftermarket Show in Las Vegas, Liteglow will
again release an exciting range of new products, for which orders are
already being received prior to formal release. Liteglow already has major
commitments for these new products which will add significant sales and
earnings in the coming 1998 year for which group revenues are projected at
approximately $8,000,000.
According to the most recent survey by the American Automotive
Manufacturer's Association, two-thirds of all specialty equipment consumers
own a second or third vehicle, and on average spend $1,255 in specialty
automotive equipment products per year. In light of this, the Company plans
to continue to focus its efforts on expanding its product base and lines of
functional automotive accessories, as well as continuing to aggressively
market its 12-volt, appearance enhancing automotive accessories.
NEW
DEVELOPMENTS
Company President Spencer Krumholz's recent trip to China resulted in the
signing of an exclusive manufacturing contract with one of the largest
suppliers of neon and accessories in that country.
The contract provides for Liteglow to be the exclusive U.S. importer for
this supplier, and for the supplier to provide Liteglow with a new line of
neon merchandise, at a 20% cost savings to Liteglow. This will continue to
add more to the Company's bottom line.
Liteglow has been recording record sales during the first nine months of
1997. The unaudited nine months numbers for 1996 vs. 1997 showed a 38.5%
increase in sales and a 90+% increase in gross profit over 1996. Net income
increased $97,653 over 1996. Liteglow has also appointed several new sales
agencies representing an addition of over 25 salespeople to continue its
double digit sales percentage increases.
During 1997, several major new export customers placed orders for shipment
to the Ukraine, Portugal, Sweden, Italy, Norway, Germany, The United
Kingdom, Canada and South America.
This eastern and western European market is expected to grow very rapidly,
and ultimately generate direct shipments of container loads of Liteglow
products.
Liteglow Industries is now positioned for a dramatic increase in revenues
and earnings for the 1998 year.
1997 MILESTONES AND HIGHLIGHTS
Liteglow establishes in-house graphics and product development division.
Over 15 new products released.
Exclusive Chinese manufacturing agreement entered into resulting in 20%
savings on cost of goods.
First delivery of the Chinese manufactured goods arrive in first week of
October. Total shipment of three containers sold out within one week.
Product demand continues, next shipments presold due to unprecedented
demand.
Client base expands to over 2,500 accounts including major retailers such
as Circuit City, Nobody Beats the Whiz and the JC Whitney mail order
catalogues.
LowGlo Neon, a specialist neon business based in Orlando, Fl with annual
revenue of $800,000, acquired in October. Revenue for 1998 projected at
$1.75 million.
In October, Liteglow announces record nine month 1997 results vs. 1996.
Revenues increase 38.5% with a dramatic 96+% increase in gross profits.
Liteglow to launch further new products at the November Industry Week
Show in Las Vegas. This exposure will generate further increase in product
demand.
Liteglow forecasts 1998 group revenue increase to over $8,000,000, with
net earnings expected to be around 8-11 cents per share.
Liteglow will continue to acquire, license and develop new products, as
well as aggressively seeking businesses for acquisition.
Liteglow management promises an ongoing commitment to all their fellow
shareholders. |
