Technovision Systems Embarks on Aggressive Acquisition Campaign
Technovision Systems Inc TVS
Shares issued 9,837,188 May 21 close $1.31
Fri 21 May 99 Company Sponsored
PROFITABLE INTERNET SERVICE PROVIDER EMBARKS ON AGGRESSIVE ACQUISITION
CAMPAIGN
Technovision Systems Inc.
(TVS-VSE)
Current Price: $1.31
On May 18, 1999, Technovision Systems (operator of UNIServe OnLine)announced that it had entered into an agreement, subject to satisfactory due diligence and regulatory approval, to acquire a regional internet service provider with approximately 5,000 dial-up customers. With this acquisition, the company will have approximately 31,000 dial-up customers and have current revenues of about $6.7 million on an annualized basis.
Technovision also announced that it has targeted its next acquisition of approximately 3,300 customers. Management plans to grow Technovision to the range of 50,000 customers this calendar year by both ongoing sign-ups and acquisitions. The company's goal is to be the largest regionally-owned ISP in British Columbia next to Sympatico.
Earlier this month, Technovision Systems (TVS-VSE) announced continued growth in revenues and earnings for the company's UNIServe OnLine internet service provider business --- uniserve.com.
The company reported revenues of $3.5 million for the 9 months ended February 28, 1999, as compared to sales of $2,257,000 for the same period in 1998.
Net earnings for the period grew to $760,000 or eight cents per share,after a deduction of $229,000 for income taxes, from net earnings of $448,000, with no deduction for income taxes, for the comparable period in 1998.
Based on the immediate success of Technovision's acquisition of Sunshine Net Inc., which closed on February 1, 1999, management is confident that the acquisition announced this week will have a major positive impact on operating cash flow and earnings. In fact, it is estimated that on a combined basis, the two acquisitions will add annual cash flow of approximately $0.136 per share. For its most recent quarter ended February 28, 1999, Technovision reported cash flow of approximately $0.16 per share
on an annualized basis.
Technovision recently completed an $800,000 private placement for use in the planned expansion by acquisition of internet service provider competitors. The placement consisted of 1,066,666 units at 75 cents per unit, each unit consisting of one common share and one non-transferable warrant exercisable at 75 cents in the first year and 87 cents in the second year.
Al Budai, editor of the well-respected independent investment newsletter, The Buy Low, Sell High! recently compared Technovision to competitor I.D. Internet Direct.
Technovision Internet Direct
Stock Price
(May 5/99 12 noon PST) $1.15 $3.15
Approximate # including
financing shares issued 11,000,000 35,200,000
Market Capitalization $12.7 million $110.9 million
Approximate
Current # subscribers 31,000 110,000
Market Capitalization
(Value) per subscriber $ 410 $ 1,008
"It should also be noted that TVS has a longer and more consistent history of profitability and is trading at a reasonable p/e multiple by any standards, never mind for an internet stock. If TVS were to receive the same valuation as IDX in the market, its stock price would more than double, without any further acquisitions!"
Mr. Budai first profiled Technovision to subscribers of The Buy Low, Sell High! in December 1998. A copy of his independent review of the company is published below.
COMPANY CONTACT POINTS AND ADDITIONAL INFORMATION
Please check out our website at tvs.net or contact us directly for further information.
Suite 1, 3180 262nd Street
Aldergrove, B.C. V4W 2Z6
Phone: (604) 856 - 6281
Fax: (604) 856 - 7796
E-mail: mailto:stockinfo@tvs.net
Contact Person: Gordon Tremaine
INDEPENDENT FEATURE OF THE BUY LOW, SELL HIGH!
Technovision Systems was recently featured at 73 cents in the December 1998 issue of The Buy Low, Sell High! Small-Cap Canadian Stocks Review, one of Canada's most respected independent stock market newsletters. It should be noted that The Buy Low, Sell High! does not accept any fee, consideration or other benefit for inclusion of a company in its newsletter.
The Buy Low, Sell High ! feature on our company is reproduced in part below, with the permission of the publisher, CanStock Information ServicesCorp. of Kamloops, B.C. If you are interested in receiving a full reprint of The Buy Low, Sell High! article on Technovision, please contact us.
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The background information with respect to The Buy Low, Sell High! is presented below to give readers of this e-mail a better idea as to the significance of our company being featured in this prestigious publication. The following summary of The Buy Low, Sell High!, its philosophy and track record, along with a special introductory subscription offer, has been prepared by its publisher, CanStock Information Services Corp....
The Buy Low, Sell High! is a monthly investment newsletter
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