Here are the MISM report from GMT newsletter and the letter from Dan Masters (CEO of MISM) to shareholders:
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MIS International MISM: OTCBB NASDAQ
This stock was first picked at the 17 cent level on CyberWhispers and then
posted it to our Subscribers in our Newsletter. We have just received some
VERY exciting information which we have attached below. One important item
to look for is the name of Wilfred Shaw, Director ( The Shaw family
are...lets say...extremely well off, and one of the richest in the country
of Singapore). Now if you were an Investor,ask yourself the question, why
would one of the richest families in Singapore be associated with MISM???
Here is the CEO's letter to current shareholders. Dan answers a number of
questions which current and potential Shareholders may have on their minds.
ÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿÿ MIS International Inc.
ÿÿÿÿÿÿÿ Shareholder Update: November 1997
Dan Masters President/CEO
Dear Fellow Shareholders:
1997 has been a breakout year for MIS. My tenure as your CEO began a little
more than one year ago. When I assumed my position difficult decisions and
long term objectives were required if MIS was to survive. The last time I
wrote to all of you was last spring when we mailed out our audited financial
statements andÿ a company update. We will send you quarterly reports
beginning in April. Press releasesÿ and this years audit will be mailed when
ready.
Lets look at the changes in 1997.
Wheel to Wheel
Our first location opened in Oakville, Ontario on February 1st. Since then
we have amassed more than 1400 customers in our database. This exceeds our
projections. We had budgeted 1200 customers after the first year. Our
average ticket price is growing and the store is profitable. We expect sales
ofÿ $40,000 for December. If we achieve those sales the monthly profit
should be between $5,000 to $8,000 depending on business mix. This will give
us 40% productivity in our tenth month which is excellent for a new store.
We are very pleased that Bill Stafford joined our company in September.
Bill's background in the automotive industry spans 28 years. He began as a
mechanic and has grown to become one of the most distinguished automotive
executives in Canada. Bill had his own consulting company where he trained
automotive shop owners how to increase sales and profits. Prior to his own
business he was the person in charge of the same function with Canadian
Tire. It was in his role as consultant to MIS that I formed a deep respect
for his abilities and when he accepted my offer to become VP Operations,
Wheel to Wheel I was deeply touched. Bill could walk into any major
automotive company and they would find a senior position for him.
As most of you know we recently announced a major acquisition for Wheel to
Wheel. On March 1st we become a national automotive chain overnight. Of
course, this was always our plan. We began discussions with this company in
the summer and just concluded the terms of the dealÿ recently. We will
announce to the public the first business day in January the name and terms
of the deal. The delay is at the sellers request. When you learn the details
and name of the company you will understand the delay.ÿ This deal also
involves a marketing partnership with one ofÿ the world's most dynamic
retailers and other exciting news I cannot yet discuss. I almost bust at the
seam every time I have to bite my tongue on this deal.
2-
What I can tell you is that we are paying far less than what a 20 million
dollar company is worth. We are also paying cash.ÿ The company is
profitable. Albeit, under-performing at 25% productivity. This means their
bays are full 25% of the time. This versus an industry average of 50% to 55%
for a mature location (3 years old or more). We believe a first year
productivity gain of 100% is realistic and expected. Both MIS and the other
company will benefit from this deal. We will rent space and pay a small
percentage of sales to them. They will have higher profits from our rent
than they currently earn. By the way, our occupancy cost with this deal is
50% to 70% of what we would normally budget. Its an incredible deal. Onward
to March.
We will also be announcing new staff members shortly. We have hired
automotive support specialists who join us in January. Weÿ will announce
them to you after they have given notice with their current employers.ÿ
Pretzel Twister
We currently have 10 franchises and one company storeÿ in five Canadian
provinces. I sold the company to MIS in May for 500,000 restricted shares,
no cash. The profit last year was $138,000. I could of easily sold the
company for upwards of one million dollars by now. My stock at the sale was
worth around 12c a share. Our sales were up considerably at the end of the
third quarter. MIS required the cash flow and boost my puttingÿ Pretzel
Twister in gave us.
I first began opening locations across Canada two years ago. I had purchased
the master franchise rights for Canada. We learned a few things about the
pretzel business. One was that setting up "US style" was a mistake that cost
us a few of our first stores.ÿ Things have been extremely bright our second
year. One store for example has a sales increase of 400% this year. That's
right 400%. We are also buying the very company I purchased the Canadian
rights from. This will add a further 25 franchised locations andÿ an
expected profit of at least (assuming almost no growth) $300,000 US in 1998.
It will give us worldwide expansion potential and the best Pretzel market in
the world for our wholesaling. We also get a bona fide address in the United
States that will eventually become our head office. I feel we will at least
double to 50 US locations in the first year.
Lookÿ for another potential Pretzel acquisition next year. We are looking!
General Information
Our business plan is aggressive. 1000 locations and 25 million per year in
revenues within 5 years. In 1998 we should surpass the revenueÿ with our
acquisitions even though we will not be near 1000 locations. What this means
is that we are redoing our business plan. I hope to fill you in next update.
As most of you know, my background is helping franchise companies succeed.
From my first small company I franchised 13 years ago. To my consulting
company MFC which at its peak charged $5,000 per day to consult to major
franchise companies in expansion and growth. I live, eat, and breath
franchising. I have no other ambition other than to be the CEO of one of the
world's greatest franchise organizations.ÿ That is my reason for being here.
It will take time, patience, and most of all hard work and some luck.
Iÿ have retired my other franchise investments and am totally devoting my
time and energy to MIS.
-3-
Your Directors are myself and Wilfred Shaw. It was Wilfred who convinced me
to become the CEO last year after the original management left to pursue
another OTC BB company. At that time this company had only liabilities, zero
sales and worthless assets. We worked to complete the audit and move the
company to Delaware from British Columbia. This was finished in June.
Wilfred is like you, a shareholder. He is the representative of a venture
capital company that "inherited" MIS to save it's one million dollar
investment. Both of us have mainly restricted shares and are not going
anywhere. We have also covered the expenses required to rebuild the company
and grow Wheel to Wheel. Almost, $700,000.
Many of the staff agreed to defer aÿ part ofÿ their salaryÿ for restricted
stock and options. We did this so the company could use it's resources for
income producing activities. I also tookÿ restricted stock for moneys I have
lent MIS over the last year. I gladly did it. I have faith in our ability to
grow this company and the stock should be worth much more to me down the
road.ÿ I also feel that as an "investor CEO" my credibility with you the
shareholder would increase.ÿ We have built this company to where we are
currently at break even before any acquisitions close. Our long term plans
include becoming a fully reporting company and moving off of the OTC BB when
we qualify.
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