**** MRPS 1999 PROFIT ESTIMATE ****
Based on signed contracts announced by MRPS in company press releases, and using the actual gross profit revenue figures attached to those contracts where possible and conservative estimates where not, the following represents my estimate of net profits for MRPS as of this date 4/17/99.
Many of the contracts below extend into the year 2000 and beyond. In those cases, I have estimated 1999 profits. The revenue amounts listed are presumedly the gross profit figures to MRPS after cost of product.
*FORD US
Contract to deliver 6,553 Model A07 units for Ford dealerships. MRPS says this represents in excess of.............................................. $1,400,000.(Est. $900,000 in 1999)
*FORD Europe
Contract to deliver 9,700 Model A07 units through SPX. MRPS says this represents in excess of.............................................. $2,100,000.(Est. $1,200,000 in 1999)
*GENERAL MOTORS
Blanket purchase order to sell Model 111RCK to 64 plants. Dayton and maybe Pontiac plants have already purchased approximately 40 units. 9 other plants will be visited in 90 days.
To date sold represents in excess of...... $60,000. It has been estimated by MRPS that each plant will purchase 20 to 40 units (30 each are assumed here). 1999 - 22 plants @ 30 units @ $1,500 gross profit = $1,000,000.Est. for 1999
*F&M Mafco
Distributor to the paper, petrochemical, power, steel and construction marketplace.
Contract to buy 1,000 Model 111RCK, at a rate of 75 min. per month. MRPS says this represents in excess of.............................................. $1,400,000. (Est. $1,000,000 in 1999 )
* JUD-TECH
Distributor to oil industry in western Canada. MRPS says this represents in excess of.............................................. $500,000.
* Day & Associates
Distributor to the trucking industry (Ryder, Penske, Mack, etc.). Contract to purchase 3,500 Model 111RCK over 24 months beginning 6/1/99 at rate of 146 units per month ($211,000 per month gross profit).
Contract will generate in excess of.....$3,500,000 (Est. $1,477,000 in 1999)
MRPS has therefore announced signed contracts for in excess of $10,000,000 gross profit of which I estimate gross profit in 1999 alone to be $6,077,000. Assuming a 50% internal overhead+taxes, I get a minimum of $3,038,500 in net net divided by 10M shares outstanding yields a .30 cent pe x a conservative 20PE multiple = $6.00 value as of 4/17/99
HOWEVER:
MRPS has also announced signed contracts with a number of other customers for which we do not have accurate revenue numbers. These additional current customers include: NASCAR, DELCO, the Army Corp of Engineers . ALSO, we know from MRPS that they are in negotiation now with over 100 other potential customers. ALSO, we know they are pursuing additional distributors in various industries. ALSO, the above represents efforts only to date 4/17/99 with over 8 months to go in 1999.
THEREFORE,
I think it reasonable to extrapolate from the above figures and suggest that a $8.00 to $10.00 is fair market value (conservatively) for MRPS.
NOTE: MRPS business plan of utilizing first class contract manufacturers to produce their Ultraphonics products (Bulova and UMM Electronics) and in addition to direct sales, utilizing a growing number of specific industry distributors is pure genius for achieving rapid growth, exposure, and reputation with minimal costs and giving them sales to a wide spectrum of customers that could not be reached by themselves right now.
The above are my understanding of MRPS press releases and my estimates where accurate numbers were not present. Please consult MRPS press releases.
Joe-MA |
