This is the company's last PR. (from October).
PONDEROSA deal still on.
Lowest price ever for this stock.
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R NEWSWIRE) Mark 1 Industries, Inc. Announces Release of Corporate Profi
Mark 1 Industries, Inc. Announces Release of Corporate Profile
ATLANTA, Oct. 12 /PRNewswire/ -- Mark 1 Industries, Inc.
(OTC Bulletin Board: MKII), today announced that it has released a corporate
profile, which is attached to this Press Release.
For further information, please contact Paul R. Smith at 770-509-1040.
MARK 1 INDUSTRIES, INC. CORPORATE PROFILE STOCK SYMBOL: MKII
Mark 1 Industries, Inc. acquires and manages established and proven
franchise food service systems. The Company seeks multiple unit chains of
different franchise concepts, each franchise concept being in different
sectors of the food service industry. The utilization of proven franchise
systems minimizes risks and optimizes returns for the Company's stockholders.
In a report done by 'McKinsey & Company, Inc.' for the International Food
Distributors Association titled 'Foodservices 2005: Satisfying America's
Changing Appetite', McKinsey states that more Americans eating out, taking
out, and assembling meals from pre-prepared foods. McKinsey predicts over the
next 10 years, this trend will provide a $100 billion growth opportunity for
food industry players. If Mark 1 Industries, Inc. were to capture 0.1% of
this growth potential, sales would increase by $100 million.
Current Operations
Mark 1 owns the franchise system rights from Heritage Concepts
International, Inc., a publicly traded company (Toronto: HCI.TO), for Eastern
Ontario and the Province of Quebec, in Canada, and the Metro Area of Atlanta,
Georgia. Operations are in Atlanta, Georgia and Ottawa, Canada. This
franchise system has a 25 year history with multiple and diversified franchise
concepts.
Mark 1 currently operates (3) Kenny Rogers Roasters Restaurants; (2)
Grandma Lee's Bakery and Restaurant; (2) Amigo's Sports Cantina (1 under
development); (1) HillBilly Shacks Saloons; and (1) Houston's Texas BBQ &
Grill.
Fortune 500 Opportunity
One of the most exciting acquisitions has been our Grandma Lee's Bakery &
Restaurant location at the AT&T office campus in Alpharetta, Georgia, a suburb
of Atlanta. The restaurant, which opened in December 1995, provides
foodservice facilities for an employee restaurant and catering functions for
AT&T meetings and events. To keep pricing low for their employees, AT&T has
provided all the equipment at no cost to Mark 1 and does not charge rent or
utilities. This is a captive market for the Company. AT&T is the 15th largest
corporation in the United States.
Mark 1 and Heritage Concepts International, Inc. are currently in
discussions to form an alliance for the purpose of implementing a "roll-up" of
similar Fortune 500 office restaurants. Both Companies believe that an
effective "roll-up" will achieve annual volumes in excess of $100 million.
Current Situation
There are 24,000,000 common shares issued and outstanding. Stock has
traded between $0.31 and $0.98 per share in the past four months with mid to
heavy volume. 1997 annual sales were in excess of $7 million with pre-tax
profits of $350,000, assuming Mark 1 had acquired Investco Corporation at that
time.
The Future
On August 28, 1998, the Mark 1 entered into a conditional contract to
acquire five (5) Ponderosa Steak Houses located between Venice and Naples, in
Southwest Florida. The acquisition includes real estate, buildings,
equipment, and operations. An MAI appraisal, completed by C. Michael Polk &
Associates, Inc. in the fourth quarter of 1997, concluded the value of total
property was $6,215,000. The purchase price is $4,350,000. This provides the
Company with a built-in equity of $1,865,000. Subject to acceptable due
diligence and financing on the part of the Company, this acquisition will
increase the Company's revenues by $4.4 million. Closing is anticipated in
November 1998.
Mark 1's goals are to reach $100 million in revenues within the next 5
years with a reflective share price on a listed exchange. Assuming Mark 1
achieves its revenue goals, the company's stock should trade in the $4 range
assuming operating margins of 5% of revenues and the stock trades at current
industry average multiples of 20 times earnings.
Corporate Office
Mark 1 Industries, Inc.
P.O. Box 71837
Marietta, GA 30007-1837
Phone: (770) 509-1040
Fax: (770) 509-1480
This report has been prepared for information purposes only and shall not
be construed as a solicitation for investment purposes. You are advised to
obtain investment information from a securities broker or registered
investment advisor.
SOURCE Mark 1 Industries, Inc.
-0- 10/12/98
/CONTACT: Paul R. Smith, Mark 1 Industries, Inc., 770-509-1040/
(MKII HCI.TO)
CO: Mark 1 Industries, Inc.; Heritage Concepts International, Inc.
ST: Georgia
IN: FOD FIN
SU:
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