Environmental Digital Services, Inc., (EDSI) is a company of engineering, environmental, management and sales professionals engaged in supplying inventory monitoring, inventory management and construction and remediation products and services to the petroleum distribution and retailing industries.
CAPSCAN, an in-tank inventory level monitoring device, accurate to EPA
requirements.
A hand held computer used to retrieve, store and transmit data from tanks, pumps and logs.
On-site and off-site data processing to identify losses due to leakage, short deliveries, pump miscalibration or theft.
Pre-qualification approval for Environmental Impact Liability (EIL), and possible premium discounts.
The inventory system fills an industry need legislated into law that is most strictly enforced by the EPA. This system is the only fully integrated product in the entire marketplace that economically meets all the requirements of the EPA. The system provides a safety net to insurance companies willing to underwrite Environmental Impairment Liability policies for service station and other tank-owning industries by providing a pre-qualification test prior to policy binding. This system also more accurately presents the tank inventory so as to detect short deliveries, theft, pump calibration errors and possible leaks.
Tank owners have been seriously policed by an ever more vigilant EPA regarding record keeping accuracy and insurance coverage. The "CAPSCAN" system appeals to insurance companies and, when used as directed, more than satisfies the strict requirements of the EPA.
EDSi is gearing up for a penetration of just over 10% of the available marketplace. Utilizing company proven sales concepts, EVDS expects to sell it's patented and copyrighted system for a gross sales total of approximately $140,000,000 over a 4 year time period. EVDS brings more than 50% of the gross sales to the pretax line.
EDSi Construction and Remediation Technologies, Inc., a wholly owned subsidiary, was formed to provide for the construction of new fueling facilities as well as remediation of contaminated sites to meet local, state and federal regulations. This group is separately managed by a team with cumulative total of decades of experience in this field and is currently focusing on the entire Southeast as their market area. An upcoming EPA mandated tank upgrade promises an even busier next fiscal year.
This information can be found in the informative investor booklet that can be requested from EVDS.
EVDS closed at .75 on Friday. The stock has shown 8 straight days of accumulation but has still not really moved much. That could change soon. No one can know the future but I think EVDS might just be a real good investment:
dailystocks.net
EVDS Financial Projections for 1998:
These projections are based on the company having a working product in the field for almost four years (at a Texaco service station), strong major oil company interest for the CAPSCAN product, and a $4.5 million order for tank installation (8/17/98). 100 of the manufactured prototypes will be available soon, CAPSCAN orders should follow quickly, and initial deliveries are scheduled for early December, 1998. EVDS estimates that initial orders could be in the 5,000 to 10,000 unit range. Using a more conservative conservative number of just 3,000 CAPSCAN (and associated products) units sold in 1998 it can be estimated that EVDS will be able to book $2.5 million in sales this year plus an additional $0.5 million in revenues from the Construction and Remediation arm of the company for a total of $3.0 million. Gross margins are very high, estimated to be to be 79% for the year. Expenses have been under tight control, other than engineering expenses which should be about $400,000 for the year. This leads to a pre-tax profit estimate of $935,000 for 1998. There will be no taxes on that as the company has a $1.7 million NOL, leading to an EPS estimate of $0.06 for 1998, all of which is expected to fall in the fourth quarter.
Regards, Jeff
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