As promised, heres hilites of April Shareholder letter and
PLNM investment packet, and quite possibly, THE LARGEST POST EVER HAND TYPED ON S.I. :-)
Letter from CEO:
"The first q of 1998 has shown a continued growth of our company, consistent with out performance in 1997. A recap of 1997 revenues includes 1st q $148K, 2nd q $189K, 3rd q $238K, and 4th q $291K.
Revenue from the 1st q of 1998 was $357K, consisting of $109K from
Jan, $116K from Feb, and $131 from Mar.
Our monthly negative cash flow is holding at approx. $25K as our expenses are growing, as planned, with revenue. We have adequate cash reserves to support our plan to reach a break-even point in June or July. Monthly revenues and expenses are projected to be $160K at that time. I expect we will see a more significant rate of growth late in the 2nd, or early 3rd q of this year. My reasons for such projections
follow.
In the last shareholder letter I bragged a little about record months in broker sales with 250 new subscibers in one month and a full quarter of new monthly revenue exceeding $7000 each month. In February we had 304 (new record) new broker subscribers and in both February and March new monthly revenue from broker sales was $11,950 and $11,700 respectively. We should approach these same approximate numbers in April and increase expectations in May. As you will recall I projected our first month to exceed 300 new broker subscibers in April and we accomplished that in February.
In 1st q ...hired 4 new sales reps... 2 engineers...4 database
maintenance... 1 comptroller.... at least 4 more sales people will be hired in 2nd q... 14 broker sales personnel will grow to 20...
Increase in power people(7 new) in the database maintenance dept allowed 8 new regional databases to be activated in the 1st q.
We now emphasize our new national status with a total of 22 databases featuring regionalized pricing of mortgage products. The growth of databases will continue. Our total database now consists of over 7.5 million pricing variants. We clearly have no peers, anywhere. I anticipate the database will double again in size over the next 12 months...
A significant portion of revenue growth in March was from ad banner sales. Remember I pointed out earlier that at sometime our # of subscribers would begin to influence advertisers wanting a cost-effective way to reach a specific market. That theory has begun to prove accurate, but we have not yet begun to reach our potential in this area...
While we have built and maintain 42 lender home pages presently there are more lenders we can direct our marketing efforts toward...
Combine all of the above with the fact that the number of businesses with internet access are projected to at least double in 1998, you have the formula to predict the increase in the rate of growth of
revenue I mentioned earlier...
With new comptroller Steve Thompson, PLNM is in the process of selecting an auditor- just under the top 3 or 4 name brand firms...
we intend to become a SEC "fully reporting" company and hope to effect a filing before mid-summer...
Participated in Maryland and New York trade shows...
Dont forget I record a weekly message updating current affairs of the
company. Its toll free @ 1-800-468-9559.
Allen Ringer, CEO, Plenum Communications"
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Letter from Chairman:
"Over the past several weeks Internet related companies have recieved an extraordinary positive response from the public market! In almost all instances, these entities are being rewarded for their current market share and their early adoption of the internet at a tool for commerce and the commensurate acceptance. Our company was one of the first to exploit the internet as a distribution vehicle for delivering its product/service in 1995... During the balance of 1998 and all of 1999 the surge in Internet acceptance should find its way proportionately into the mortgage broker world providing us with an incresed pool of prospects... this will ultimately allow us to be recognized as one of the leaders of internet-related entities who are using cyberspace to its fullest capacity...
...We anticipate that this 2nd q will find us continuing to invest in beefing up the fundamentals to support substantial growth in the second half of this year and beyond... allowing us to begin to secure
interest from more institutional type investors... the word of mouth
enthusiasm from our current stockholders seems to be increasing...
Billy Anders, Chairman"
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From the "Investor Packet":
...150,000 loan officers at 23,000 firms is a reasonable conservative estimate of the total market...
Building revenue through.... geographic expansion... joint marketing through origination software companies...
Potential future revenue from... loan-link lender fees... "Retail" loan search... has the potential to take the LION base business from $10 Million to a $30-$100 million business depending on market
penetration..
... As LION grows to where it has 40000 of these brokers as subscibers, LION becomes the one single place in the industry that a significant portion of the most active brokers can be reached....
this will create opportunities to take advantage of that unique position either through strategic alliances or entering new businesses
de novo... "Members Only" services and benefits from other companies
offered to LION "Members"... LION entering the escrow closing business
While the LION mortgage rate service business is expected to become highly profitable, there is far greater potential that will stem from the simple fact of having inexpensive access to a large number of the nations most productive mortgage bankers... potential coming in the form of providing other services to these brokers... Plenum can enter these businesses because its unique marketing position is expected to take Plenum into prominence as a large and dominant player in the huge national mortgage related services industry...
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