For those of you who did not see the latest news release here it is:
OCALA, Fla.--(BUSINESS WIRE)--Jan. 14, 1997--Imagica
Entertainment Inc. (NASDAQ/BB:IMEA) is working with leasing company
to acquire a new super printing machine.
MACHINE/DESCRIPTION
COMPUTER OPERATED 5-COLOR SCREEN PRINTING MACHINE with a printing
area of 144 inches by 52 inches; 11 stations; 5 printing stations,
4 drying stations and load and unload stations.
Need for machine: The acquisition of a unique computer-operated
machine will allow us to imprint five colors at one time on 12' x 52"
banners, or smaller, at the rate of 4,000 pieces per day, but it also
has the ability to accurately register consecutive colors. The
machine is going to cost approximately $750,000.
We would like eventually to have three of these machines, each
one capable of producing as much as $9 million to $18 million sales
per year per machine.
The machine will print on aluminium, steel, glass, plywood, vinyl
or whatever substrate you desire. It is computer controlled and
incorporates 11 vacuum tables, five print heads, and five dryers.
None of our competitors have a machine similar to this. The next
closest thing is a machine that will print 10-foot long substrates in
five colors.
Many of our customers buy large quantities, as many as a quarter
of a million at a time, of the products that this machine will be
capable of producing. When customers buy quantities of this
magnitude, they usually have to go to several printers in order to
obtain the order. Owning this machine will allow Ranger to fulfill
very large requirements on a timely basis.
Also, we will be able to produce a higher quality product with
almost perfect registration at an affordable price, because we can
make it with one-fifth of the labor and 10 to 20 percent less waste.
Owning this machine will allow Imagica to make a much higher
percentage of profit. We feel that the acquisition will
substantially increase our sales in the immediate future, and our
planning indicates that because of the above reasons, almost any
buyer of quantities of the advertising displays that we manufacture
would choose us as their number one supplier.
Imagica Entertainment Inc., Ranger International division started
working with a prime contractor to develop a super printing machine
that would print 5 colors at one time with a format size of
53" x 12' all in excellent registration.
Imagica has invested 200,000 dollars to produce this machine to
date and approximately 550,000 dollars will be required to complete
it. We are attempting to finance the balance required to have this
machine arrive on site early this Spring and be operational by
August 1997.
This is a very exciting and long awaited addition to our business
that we have needed for several years.
The unique features of this machine that is already under
construction will allow Ranger to offer many advantages:
-0-
*T
Features Benefits
-- The machine will print -- The advantage to our customers
an area of 144" x 52" will be larger sizes available
than ever before. Also better
-- The machine will print quality, faster delivery and the
five colors in excellent ability to handle much larger
registration, because the jobs.
substrate never moves from
its original position. -- We will be able to print up to five
colors in one pass on many
-- The circular machine substrates including: polyethylene,
features seven vacuum polyester reinforced vinyl, and
pallets, five printing also on non-flexible substrates
stations, and five UV such as aluminum and sign board.
drying stations. It is
entirely computer controlled -- We will be able to print
and only requires four approximately five to 10 times
operators on each shift. The faster than with our current
size is 60' in diameter and method. Four and five color
it weighs 22 1/2 tons. printing will be available with
the very best deliveries and the
lowest prices.
FINANCIAL JUSTIFICATION
5-COLOR SCREEN PRINTING MACHINE
(Described Above)
Payback on 5,000 Sheet Run
(A) NEW (B) PRESENT
Computerized Flat Bed Line
5-Color Machine 1-Color Machine
INVESTMENT $750,000 $100,000
1) Print area 52" x 144" 52" x 144"
2) Total space required (machine
and operating) 10,000 sq. ft. 3,000 sq. ft.
3) Total quantity of five-color
jobs 5,000 pcs. 5,000 pcs.
4) % of spoilage allowance 5% 25%
5) Total number of finished five-
color pieces 5,250 pcs. 6,250 pcs.
6) Total number of cycles per
machine 5,250 31,250
7) Impressions per hour 1250 IMP 80 IMP
8) Total production time required
to complete a job (No. 6 -
No. 7) 21 HR 391 HR
9) Set-up time to complete job 5 HR 5 HR
10) Total time (No. 8 plus No. 9) 26 HR 396 HR
11) Number of employees per press 6 3
12) Total labor hours to complete a
job 156 1,188
13) Labor cost - Hours x $25.00 $3,900 $29,700
14) Scrap Cost - pcs. x $16.00 $4,000 $20,000
15) Total savings A vs. B $41,800
16) No. finished sheets per hour 250 16
17) Sheets per day - 21 hours -
less spoilage 5,000 pcs. 252 pcs.
18) 242 production days 1,210,000 pcs. 60,984 pcs.
19) Gross sales at $16.00 each $19,360,000 $975,744
20) Variable Cost 21%-A 51%-B $4,065,600 $497,629
21) Fixed Cost $345,972 $243,936
22) Gross Profit $14,948,428 $234,179
(a) Variable costs -- material, inks, commissions, direct
production costs, etc.
(b) Fixed costs -- salaries, rent, utilities, etc. (Since
overhead is the same in either case, take the percentage of lowest
gross sales and apply it to both machines.
*T
The above calculations were produced on a best efforts basis and
we feel are reasonable at this time.
-0-
NOTE TO EDITORS: In the World Wide Web address noted in this
news release, there is a double slash between http: and
www.stock-spectator.com/IMEA . These symbols may not appear properly
in some systems.
CONTACT:
Imagica Entertainment Inc.
Tracie Dawson, 352/867-5739
stock-spectator.com
KEYWORD: FLORIDA
INDUSTRY KEYWORD: ENTERTAINMENT
BW0192 JAN 14,1997 |
