Info from Gator concerning ETPI"BIG NEWS"(PROBABLY MONDAY RELEASE).
ETPI has just acquired Water Wonderland, a family entertainment center located in Midland/Odessa, TX.
Water Wonderland is an 18-acre water-fun park in missle of West Texas desert. Single-price admission provides unlimited use of all facilities including five water slides, water toboggan, swimming and diving pools, Mountain Rapids tube ride, wave pool,sandy beach, plus squirt pools and playgrounds for younger children . The waterpark is open May-Sept. Adjacent is miniature golf open year round.
The "Family Entertainment Complex" also includes an arcade, a mini-Formula One racetrack, Bumper boats, paddle boats, and a 1/8 mile racetrack(real racing) that seats 3500, and a restaurant.
The park alone currrently generates around $3,000,000 in revenues. It is profitable, but i do not have a solid dollar figure on it yet. It is being sold by an individual who acquired the property as part of a bankruptcy deal. He doesn't wish to manage it so he's selling it off (and we're getting a great deal).
Here's the kicker: The deal cones with 50 acres of undeveloped land. ETPI plans on expanding the facility. The current arcade is tiny, they are going to expand it (probably more than 10,000 sq ft),and add an 8,000 sq ft laser tag arena. The dirt track (which seats 3500, typically draws 1000 to each race) currently doesn't have a liquor license. However, etpi does have a Texas liquor license (from Redfish and Chacho's restaurants) , and plans on selling beer at the dirt track. Since etpi also is in the concert promotion business, they will also use the track and seating to hold concerts. They are also evaluating plans to put in a "lazy river" for tubing around the water park, a golf driving range, and a pitch and putt/small scale golf course.
ETPI got a good deal on the property. Basically consists of 2,000,000 restricted shares, plus options for 2 million more at an exercese price of $1.75 (i think). Property has been appraised at $4.8 million, so they are getting $4.8 million in property and $3.5 million in cash (if the options are exercised) for around $2.5 million dollars in stock (at today's prices).
Since the property will the books at cost, the company wants to get the stock price as high as possible before the 30th of this month so it hits the books at a higher valuation. So I believe we will see a pretty big push between now and next Tuesday.
MORE NEWS!!
The Arlington Mall Hero's is now open. Slight delay in opening becayse they had to wait for fire marshall approval. It is expected to generate $3,000,000/yr in revenues. I don't if this will go out as a separate release, or piggy-backed with the Waterpark release, or just released locally to the Dallas/arlington news media.
BUT WAIT,THERE"S MORE The Bronco Bowl location broncobowl.com will open probably this weekend . This location will generate about 2million a year in revenues.
STILL MORE! The Friendswood Hero's(located next to one of their Chacho's restaurants) will open before the 4th of July (big fireworks show is located near the restaurant, which is why they are hurrying to complete). This will add roughly $800,000 to revenues, and it will feed off Chacho's traffic (and vice versa), so both should benefit from the other being there.
THOUGHT I WAS FINISHED?
No Way! Although these are a little less definite:
The conpany is looking at a chain of 6 restaurants which they will acquire when the stock price reaches $2 and stabilizes the (they don't want to have to issue a bunch of share at these lower prices, too dilutive). This chain wants to become, and sees this as their avenue to do it. The 6 restaurants combined would add about $12 million in revenues and $3 million in profit.
A major money source or fund with an aggressive growth pool of money planning on picking up 1 million shares of ETPI when the stock trades above $1 for 30 days.
The conpany is evaluating another deal for a 9,000 sq ft facility similar to Redfish where they can book bands. They are also looking at acquiring the 1200 seat bar at the Bronco Bowl.
Also, the company may announce that they will be getting out of factoring receivables, which was a drain of about 6 thousand per month(72 thousand per year). Cash flow is now strong enough not to have to factor receivables (factoring receivables is basically selling your accounts receivables for cash, but you have to sell at a discount (6% TO 8%) for the other party to assume the risk of bad receivables. So for every 100 thousand in receivables, etpi would get 94 thousand).
Now that cash flow is strong, they can discontinue this practice and save the discount charges. That goes straight to the bottom line.
SUMMARY
ETPI is currently bringing in about $250,000 per week in revenues, or roughly $1,000,000 per month or $12 million annualized. That includes just the core military business, 2 Chacho's locations, one hero's,and redfish(doesn't include the Water Park, Bronco Bowl, Arlington Mall site, or Hero's adjacent to Chacho's, which conbined will bring in another $8.8 million in revenues per year. If the stock price stablizes over $2 and they acquire the 6 restaurants, that would add an additional $12 million in revenue. So in a very short period of time, ETPI's revenue run rate could go from $5.5 million last year to $12 million current to over $32 million! And these are highly profitable operations (game/laser tag centers runing anywhere from 40% TO 50% net profit rate). And this doesn't even factor in additional growth (which is expected) of the Hero's family entertainment centers, which the think they could almost double the number every quarter. |
