DETAILED AVLI - "GENERAL OVERVIEW INFORMATION" by Brad
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(This information has been compiled by me, an independent investor, and is presented to be as accurate as possible according to what information I have been able to obtain from public and private sources. This should NOT be assumed exact, but is presented as a starting point for research purposes.)
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Ticker Symbol: AVLI
COMPANY:
(Kenwick Inc) dba American Video Language Institute
2455 E Sunrise Blvd, Suite 512
Ft Lauderdale, FL 33304
Phone: 1-800-822-4122 or 954-566-5264
Fax: 954-566-5164
CEO & PRES:
Ken Wulwick (Salary $85,000 and owns 1,028,571 shares)
Sr VP Sales & Mktg:
Shel Glickman (Salary $82,000 and owns 771,429 shares)
Sr VP Planning:
Margaret Nabridge (Salary $82,000 and owns 771,429 shares)
CFO: Jerry Nabridge
WEB SITE: avli.com (Under Construction)
E-MAIL CONTACT: margienab@aol.com
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PR FIRM:
Venture Capital and Marketing Consultants - 407-302-9994 or 888-302-9994
AUDITING FIRM:
Purlitz and Weintraub - Plantation, FL
TRANSFER AGENT:
Florida Atlantic Stock Transfer, Inc - 954-726-4954
SEC STATUS: Plan to be Fully Reporting by the end of September, 1998.
AVLI is Listed in Standard and Poors Registry.
Information on OTC:BB reporting requirements can be found at the following site:
otcbb.com
FISCAL YEAR: Calendar Year
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- SHARE INFORMATION -
TOTAL SHARES OUTSTANDING: 2.9 million
(The acquisition of Automax USA is expected to increase Outstanding Shares by 1 million shares. These will all be Restricted Shares.)
SHARES IN THE FLOAT: Apx 280,000
RESTRICTED SHARES: 2.6 million
INSIDER HOLDINGS: 2.6 million
TOTAL SHARES AUTHORIZED: 10 million
PREFERRED SHARES ISSUED: - 0 - (1 million are Authorized)
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FINANCIAL STATEMENTS: Available from the company.
LONG TERM DEBT: Apx $261,000
TAX LOSS CARRY FORWARD: Apx $325,000
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REVENUES
(Ramp up year)
1997.................................................. $1,175,210
Projected 12-Month Estimates:
July 98 - Jun 99.............................. $7.95 Million
(Includes $2.75 million from Language plus $5.2 million from Auto.)
July 99 - Jun 00.............................. $18.45 Million
(Includes $8.25 million from Language plus $10.2 million from Auto.)
PROFIT MARGIN:
Language Program EBIT 22%
Autos and Financing EBIT 23%
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EARNINGS
1997 (Ramp Up)........................... EPS ($0.09)
Projected 12-Month EPS Estimates:
July 98 - Jun 99.............................. EPS $0.31
July 99 - Jun 00.............................. EPS $0.64
INDUSTRY AVG P/E MULTIPLE: 25 times EPS
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RECENT PRESS RELEASES:
biz.yahoo.com
CURRENT QUOTE:
cbs.marketwatch.com
52 WEEK RANGE: $2.75 - $7.81
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GENERAL BUSINESS INFO
AVLI has two (2) revenue streams...
REVENUE STREAM #1.
AVLI sells comprehensive learning systems that help non-English speakers learn English including the Award-Winning "Speak to Me" and "Business Express" Video Programs. It markets to non-English speaking people in their native tongue. Primary market is people who speak Chinese, Vietnamese, Korean, Spanish, Portuguese and Russian as their main language.
The "Speak to Me" Program was awarded a 4-Star Rating from ABC Clio. ABC Clio is considered the definitive buying guide for libraries in the United States. It has also earned recommendation by the California Library Association as the course for those wanting to learn to speak English.
Originally, AVLI sold just two main products. During the 1Q of 1998, the company began expanding the product line to enhance their position as a valuable source of multiple types of language products. That effort has already resulted in added sales and a substantial increase of the company's client list.
The company has a strong market niche in that they are effective in selling to non-English speaking people in their own language. Together with a knowledge of advertising in various languages, they have developed experienced telemarketing personnel that speak various languages to finalize sales. This can lead to collaboration with other producers of educational material who want to sell to this market segment.
IEI / Philips (a subsidiary of Philips Electronics NYSE: PHG) recently granted AVLI distribution rights to the Phillips Electronics, International Business Language and Integrated English learning programs developed by Philips through their production company Multivision. These products, with the backing of the prestigious Philips Company, are expected to produce significant revenue.
AVLI is developing a comprehensive Internet marketing program. This program is designed to meet the demand of this fast-growing market segment. Internet users in numerous countries around the world will then have direct access to AVLI products and support services.
AVLI plans to grow through increased retail distribution of their newly expanded product line and through wholesale distribution to mail-order catalog companies, colleges and universities, libraries, governments and large corporations world-wide.
In the United States, AVLI is engaging a nationwide sales network to represent the complete product line to the wholesale market. AVLI wants to take advantage of the growth in demand for learning English.
Inside the US, there is an enormous demand for children to learn English. In other countries, international business is accelerating the demand to learn English. English is the language these people need to know, and AVLI brings English to them in a unique way that is easy to comprehend because it is visual, audible, and presented utilizing the immersion method prescribed by most experts and teachers in the field.
Here is an update on AVLI's expanding export markets:
- BRAZIL: The licensee is in place and revenues are expected shortly.
- RUSSIA: AVLI's agent has returned to Moscow finalize an agreement to promote and distribute AVLI's products in that country.
- CHINA: Preliminary discussions with potential distributors are now underway. Further meetings are scheduled for July. It is hoped that an agreement will be finalized soon.
- VIETNAM: AVLI is currently in negotiations with an established group with offices in both Vietnam and the USA who are planning to market AVLI's products in Vietnam.
- JAPAN: Negotiations proceed with an American company that holds an excellent presence in Japan to offer AVLI products in Japan.
- ARGENTINA & URUGUAY: The Brazilian Licensee has committed to develop these markets after the initial phase of the Brazilian market is activated completely.
REVENUE STREAM #2.
AVLI is diversifying through acquisition of two (2) privately owned companies, Automax USA, Inc. (sells automobiles) and Automax USA Finance, Inc. (finances automobiles).
These acquisitions will be accretive to share value upon closing. In other words, the acquisitions will immediately add more in EPS value (Earnings Per Share) than what they will cost in terms of share dilution. It means a Net Increase in EPS to AVLI shareholders. The acquisitions will involved Restricted Shares ONLY... NO CASH!
The principals of AVLI and Automax have been acquainted for many years. The owner of Automax wants the prestige of being a publicly traded company and AVLI likes the profitability and stability of Automax.
Automax USA and Automax USA Finance are following the path of a highly successful plan utilized by Wayne Huizenga (Republic Industries NYSE: RII). Automax USA sells used cars in the lower and mid-price ranges.
Automax USA Finance provides customer financing for these cars. This market niche has strong demand and excellent profits. Even repossessed vehicles are typically re-sold at prices comparable to the original selling price thereby maintaining excellent profit margins and minimizing risk.
Automax USA presently has 2 locations. AVLI expects to grow the auto sales & financing by adding more locations in Florida and eventually in nearby states. An annual growth rate of 50% or higher is expected for Automax USA for the next several years.
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LANGUAGE PROGRAM CLIENTS
Some of AVLI's current customers include...
- Los Angeles County Public Library
- New York City Public Library
- Free Public Library - Bayonne NJ
- Manchester Community (CT) Technical College Library
- Brandywine School District - Delaware
- Indianapolis Marion Public Library
- Danbury Public Library - Danbury CT
- Rialto Unified School District - California
- Chaffee Community College District - California
- Jeffrey Norton Mail Order Catalog
- Delta Systems Mail Order Catalog
- Brazil Weekly Newspaper - NY
- Imperial College - California
- Desert Sands Adult Education
- Iowa Central Community College
- Federal Prison - Texas
- Golden Tours - Georgia
- Spanish Book Distributor - Dallas TX
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HOW THE LANGUAGE PROGRAM WORKS
AVLI's "Speak to Me" Video Tapes are designed to teach the viewer to become fluent in English. The viewer learns thousands of the most commonly used words in English and learns them in live-action situations including the home, the office, restaurants, travel and
small business interactions. The interaction of the visual and auditory, not possible in most other methods of instruction, is a key to the success of "Speak to Me."
All of the images in "Speak to Me" are sequenced in logical order so that the viewer learns progressively. The vocabulary and grammar that are learned in each lesson are repeated, and thus reinforced throughout the course. The heart of the course is the systematic manner in which it teaches the viewer to think and speak in English.
Correlating workbooks are available giving the learner translations in their native language.
The company also offers "Business Express," a comprehensive video guide teaching business English and methods for non-English speaking entrepreneurs to compete in an English speaking business realm.
AVLI has also recently added a special program especially designed for children. This is especially timely considering the effects of Prop 227 in California and similar initiatives in other states.
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RELATED INDUSTRY INFO:
- 3.2 million US students are classified as Not Proficient in English. (Reader's Digest May 98, pg 139)
- Business people from around the world find speaking English essential to success in an ever expanding world marketplace.
- 2.6 million immigrants are expected to enter the US in 1998.
- Increased international travel by foreigners creates more need for learning English.
- Initiatives like Prop 227 in California increase the need for students to learn English.
- Other states are expected to introduce similar initiatives like Prop 227 in California.
- In the US, 1 out of every 7 children grows up speaking a language other than English.
- Most courses utilize texts. The AVLI Program utilizes VIDEO !
- The total English as a second language market in over $100 Million a year in the United States alone and is growing quickly.
Some Internet Links related to "English Language Learning"
lcsu2.ust.hk
tcom.ohiou.edu
ozemail.com.au
ip.rmit.edu.au
dspace.dial.pipex.com
embassyenglish.com
brainlink.com
weleap4esl.com
sfu.ca
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OTHER QUESTIONS:
Q. Are there any 504s ?
A. 504s are included in the 280,000 share Float.
Q. Any other Convertibles or Warrants out?
A. There are Warrants for 28,070 shares exercisable after 12-17-98 at $3.90
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TALK FORUMS:
Subject 21910
OTC:BB Exchange Info:
otcbb.com
NASDAQ & AMEX LISTING INFO:
This site lists the requirements for NASDAQ Small Cap Listing:
nasdaq.com
This site lists the requirements for AMEX Listing:
amex.com
CHART:
tscn.com
HISTORICAL PRICING: (Type the TICKER SYMBOL in the Symbol box)
tradepbs.com
INSIDER BUYING / SELLING REPORTS:
insidertrader.com
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WHY I LIKE THIS COMPANY:
1) Extremely LOW Float - Only 280,000 shares!
2) Only 2.9 million Total Outstanding Shares
3) Company wants to do a FORWARD Stock Split when moving to NASDAQ.
4) Relationship with PHILIPS Electronics carries strong recognition.
5) Acquisition of Automax USA and Finance is "accretive."
6) Automax deal profitable using ONLY Restricted Shares - NO CASH.
7) Insider Holdings (apx 2.6 million) are Restricted 144 Shares.
8) AVLI is Listed in Standard & Poors Registry.
9) No Preferred stock has been issued.
10) Market for the language program is growing at a very strong rate.
11) Award-Winning Language program (ABC Clio Award for Excellence)
12) AVLI management seems very "straight-forward" with information.
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NOTES ABOUT THE AUTHOR:
I am NOT associated with this company in any way. I am an individual investor with my own opinions. I don't give advice and I don't make recommendations to buy or sell. Questions should be directed to the appropriate source, many of which are listed above. Everyone is urged to do their own research before investing in anything.
I bought shares at $4.40 prior to posting this. I have been watching this stock for over a month. I heard about the company when a broker contacted me about them. He had seen one of my "Overviews" of another stock.
The broker asked me what I charge to do an "Overview." I told him I don't charge and I don't accept payment because I don't want to be obligated to anybody. I told him if I like the stock, I'll buy it and I'll do an overview. If I don't like it, I won't do an overview at all.
I hope this gives you an understanding of where I am coming from. I am indeed just a retired independent investor. My perceptions might or might not be in line with others, so I suggest you do whatever follow up research necessary for you to feel confident in your own decisions regarding this stock.
Best wishes,
Brad |
