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INVESTMENT HIGHLIGHTS
GenesisIntermedia’s (GENI’s) 2000 year-end financial performance reflected revenues of $42.3 million, a 45%
increase over 1999’s revenues. The Company recognized this substantial increase due to operational initiatives that
led to the national expansion of the Company’s Centerlinq network, the doubling of new Car Rental Direct (CRD)
locations and the introduction of several new consumer products via Genesis Media Group.
The Company’s Centerlinq kiosks are located in over 75% of the Top 10 Consumer Markets in the U.S., including
New York, Los Angeles, Chicago, Philadelphia, San Francisco, Dallas/Fort Worth and Boston. The Company is also
represented in other Top 20 Markets like Seattle and Phoenix and plans to penetrate each of the Top 20 Markets by
2002. GenesisIntermedia has invested nearly $28 million in developing and deploying Centerlinq in the market.
Centerlinq is achieving increased recognition, which was evidenced by its recent deal with Universal Pictures
whereby GENI was asked to advertise the trailor for “Josie and the Pussycats” at its national interactive kiosks.
Currently, GENI generates revenue through the following venues:
- advertising
- media consulting
- direct marketing
- e-Commerce
In the immediate future, Centerlinq will expand the Company’s revenue base with new applications of its network.
The majority of GENI’s stock is held by insiders, meaning the Company’s management and its primary shareholders
are aligned in their desires to take the Company to its next level.
CORPORATE PROFILE
GenesisIntermedia.com, Inc. (GENI) is a marketing technology company whose focus is on the operations and
marketing of new innovative and interactive technologies. The Company plans to market and advertise its consumer
goods and services through several business lines, which include:
the direct sales and marketing of consumer products (Genesis Media Group);
the interactive advertising and data mining in retail malls with its Centerlinq network; and
car rentals for the replacement market under Car Rental Direct (CRD).
GENI’s three distinct divisions, each of which is growing at rapid rates, include the following:
Centerling
Centerlinq is an Internet-based interactive marketing, advertising and promotion network and a leading provider of
public Internet access portals in shopping malls. The network is a tool that enables mall merchants to access
consumer demographics, preferences and interests, which, in turn, can be used in highly selective direct mail
campaigns. Participating member stores typically will see sales rise anywhere from three to 20%. Shoppers utilize
the network to view mall maps and sales, purchase movie and concert tickets and check the weather, travel or
sports information.
Centerlinq is currently available at 33 malls in 18 states and reaches more than 36 million consumers per month. Its
kiosks are already located in key markets including New York, Los Angeles, Chicago, Philadelphia, Houston, San
Francisco, Dallas, Detroit, Phoenix, Washington DC, Seattle, Portland, Cleveland, Tampa/St. Petersburg and
Orlando.
Car Rental Direct (CRD)
CRD specializes in the rental of vehicles for replacement purposes, such as when an automobile was sold, stolen
or is undergoing repairs. CRD currently has 15 locations nationwide and an impressive fleet utilization rate of 90%,
which is due in part to increased marketing efforts by GenesisIntermedia. CRD offers its customers the convenience
of online pricing, reservations and directions through its Web site, www.carrentaldirect.com. Additionally, CRD is in
the process of expanding its B2B offerings to include a virtual Insurance Claims Center, which will enable insurance
claims adjusters to receive up-to-the-minute tracking information on a claimant’s repairs.
GenesisIntermedia plans to aggressively build CRD’s brand image, expand its revenue stream and increase sales
and awareness by leveraging Centerlinq’s growing presence. The Company cross-markets CRD with its Centerlinq
system to generate more than 80 million impressions for CRD a month. For the two-month period ended February
28, 2001, the Company increased CRD’s Web site traffic by 260%, in comparison to the prior two-month period.
CRD also diversified its operations to the retail end of the automobile sector by selling pre-owned and retired rental
vehicles.
Genesis Media Group
Genesis Media Group is the origin of the Company. This division was born when GENI began producing
infomercials, performing telemarketing services and buying media time for its own proprietary products and for
products owned by others. More recently, this highly profitable division, which was responsible for over 60% of
GENI’s 2000 revenues, has diversified its product offerings by acquiring the rights to market and distribute new
consumer products developed by third parties. The vast array of products and services Genesis Media Group
markets include:
Diet ZX — A 24-hour weight loss solution that allows users to maximize their weight loss 24 hours a day while
maintaining a healthy balance of energy; GENI’s biggest seller in 2000.
Eagle Eyes Sunglasses — Glasses which contain polarized lenses that bring in the right kind of light to improve
vision and cut haze and glare.
Men Are From Mars, Women Are From Venus — A 12-video set based on Dr. Gray’s internationally acclaimed
program;
The Mentoring Institute, Inc. — A registered Commodity Trading Advisor where knowledgeable futures traders teach
techniques about the commodity and stock index futures market;
Roladecor — A rolling device with interchanging patterns that eases the process of painting and decorating in the
home;
Money Mastery — A money management system that includes audio cassettes, workbooks and budgeting
resources;
Free and Clear — A program that teaches real estate acquisition techniques through audio cassettes, books and
CD-Rom products;
Ab Twister — an exercise tool that targets the abdomen; and
Stimulure — a fishing lure that uses scented pellets to attract fish.
GENI has and continues to actively identify acquisition opportunities in order to expand its technology and product
offerings, core multimedia marketing capabilities and the geographic scope of its operations. The Company has
acquired DoWebsites.com and CRD to enhance its potential and growth and is constantly seeking additional
acquisition candidates to strengthen its business plan.
MILESTONES & KEY DEVELOPMENTS
04/01 The Centerlinq network partnered with Experian, a leading global information solutions provider, to offer a
variety of services that strengthen the effectiveness of shopping mall affinity, such as programs with the ability to
segment and profile the shopping habits of consumers.
04/01 The Company formed an alliance with WebMiles, Inc. to construct a program that allows shopping mall
consumers to earn WebMiles rewards from mall affinity programs.
03/01 GENI’s 3-for-1 stock split took effect, making its shares accessible to a wider range of investors.
02/01 The Company’s subsidiary, Car Rental Direct (CRD) recently expanded its product offering by opening its first
retail location in Glendale, California, which will focus on the sale of pre-owned automobiles and retired rental units.
In addition, the Company is planning to open four new rental locations, adding to the 16 locations it already maintains
in the California and Arizona region.
06/00 Centerlinq was the recipient of the prestigious Microsoft Corporation 2000 Retail Application Developer (RAD)
award for “Best Retail Headquarters Application” in the Core-Retail Marketing category, marking the second time its
received such an honor.
05/00 GenesisIntermedia acquired CRD, which at that time, had eight existing locations in Southern California and
Las Vegas, Nevada and was generating revenues in excess of $600,000 per month.
INDUSTRY OUTLOOK
With the advent of the Internet, retail marketing has changed forever. In an article for Response Magazine, Jack
Kirby, President of Quantum Television, says that “the most difficult challenges to [the direct response] industry
involve broadening our business into Internet, catalog and retail sales.”
According to the Direct Marketing Association, direct marketing accounts for about 56% of all advertising dollars
spent in the U.S. Response Magazine estimates that the Direct Response industry generates about $100 billion in
sales per year. In fact, the Direct Response industry has grown consistently for the past six years. The electronic
retailing industry is even larger with almost $1.5 trillion in e-Commerce sales (a 600% increase over 1999) and $24.1
billion in online-ad expenditures (up 2900 percent in four years) predicted for 2003.
Of course, the e-Commerce explosion is not limited to retailing. Service industries, like rental cars, are also ripe for
automation. Bnm.com, an online car rental guide, projects 40% growth for the online car rental industry in 2001.
Fueling all of this online activity are Web sites. Many companies still have not established a Web presence and
companies that can facilitate that move are in high demand.
GROWTH STRATEGY
GenesisIntermedia’s experience with traditional media is the key to its ability to capitalize on the explosive growth
occurring in electronic retailing. Centerlinq interactive kiosks are already generating four million unique visits per
month and the Company expects to deploy kiosks to 115 new malls in 2001 and 2002.
GENI will continue to foster its core marketing businesses and grow its new media assets, such as
CarRentalDirect.com. The Company plans to grow these businesses into dynamic revenue streams over the
course of the next two years.
The Company also plans to expand CRD in the following aspects:
Develop new facilities for car rentals and car sales.
Creation of Exotic and Studio Rentals division, which would capitalize on the Southern California location and the
high demand for exotic car rentals among the film and television studios niche. CRD already has agreements signed
with Avalanche Entertainment and Cruise/Wagner Productions.
Acquisition and roll-up of independent rental car operations to form a strong, single entity. Currently, there are
approximately 7,200 independent replacement rental car operator locations, which make up 30% of the total industry
locations and only represent five percent of the fleet size. By combining forces, CRD would be in a position to
become the second largest market share participant in its industry segment.
Implementation of the Toyota Rent a Car program (TRAC) beginning in two facilities in Tempe, Arizona and
Manhattan Beach, California. The start-up costs are 50-75% less than a normal CRD location and the Toyota dealer
finances all Toyota inventory for the operation.
EXECUTIVE MANAGEMENT TEAM
Ramy El-Batrawi, Chairman of the Board and Chief Executive Officer Mr. El-Batrawi has been a Director and
Chairman of the Board of Genesis since its inception in October 1993. He has an extensive background in
international business marketing, which includes the facilitation and negotiation of significant transactions between
global industrial companies and world governments. He has been involved with such firms as Lockheed Corporation,
Carnival Cruise Lines, Inc., Lonrho, Inc., McDonald’s Corporation and Eastern Airlines. In addition, he is President
and Chairman of the Board of Directors for several other companies, including International Futures Brokerage
Company, Mars and Venus Counseling Centers, Inc., Genesis Aviation, Inc., Genesis Aviation II, Inc., Genesis
Diversified Investments, Inc., Sentient, Inc. and Trade Your Way To Riches, Inc.
Craig T. Dinkel, Chief Operating Officer Mr. Dinkel joined Genesis as its Chief Operating Officer in October 1998.
Prior to joining Genesis, he served as Chief Operating Officer of Trade Your Way To Riches, Inc., a company owned
by Genesis’ Chief Executive Officer. He is responsible for managing and overseeing the day-to-day operations of
Genesis, including the management of the Company’s core group of inbound and outbound telemarketers.
Furthermore, his principal responsibilities include effectuating Genesis’ marketing plans, business development,
customer service and fulfillment and management of information systems. From April 1996 to April 1997, he served
as Manager of Special Projects of Positive Response Television, Inc., a subsidiary of National Media Corporation. He
managed the Company’s profit center and was responsible for the delivery of customized, call center services to
inbound and outbound clients. Prior to that time, he was a licensed futures trader.
Douglas E. Jacobson, Chief Financial Officer Mr. Jacobson joined GenesisIntermedia as a Director in October 1998
and brings to the Company more than 25 years experience as a Certified Public Accountant. His CFO
responsibilities include overseeing and preparing the financial analysis of Genesis’ financial growth and reporting. His
experience includes working for local public accounting firms and Coopers & Lybrand, where he audited privately
held and SEC-registered public corporations. While employed there, he was responsible for supervising the financial
audit staff of Eckerd Drugs in Clearwater, Florida. Subsequent to that position, he managed the internal audit
functions for a highly diversified, closely held family conglomerate, Lykes Bros. Inc. In that position, he was
responsible for nationwide audits.
Quote:
Last Trade: 11.97
Change: 0.52
High: 12.00
Low: 11.06
Volume: 231,800
Shares Out (thou): 19,428
52 Week High 12.20
52 Week Low: 4.16
P/E: 0
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News Releases:
2001-04-18 GenesisIntermedia.com Receives $15 Million Increase to Existing Credit Facility
2001-04-17 GenesisIntermedia.com’s Car Rental Direct.com Subsidiary Closes Additional Financing, Meeting
Increased Demand For Vehicles In California And Southwestern Markets
2001-04-16 New Competencies Propel Centerlinq's Emergence as a Key B2B Resource for the Retail Industry
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Herzog, Heine, Geduld, Inc.
Hill Thompson Magid & Co., Inc.
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NDB Capital Markets LP
Pershing Trading Company LP
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Roth Capital Partners, Inc.
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INDEPENDENT AUDITORS:
Singer, Lewak, Greenbaum & Goldstein LLP
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GenesisIntermedia.com, Inc.- Corporate Office
5805 Sepulveda Blvd
Van Nuys, CA 91411
Phone: 818-902-4397
Fax: 818-909-6666
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This publication is an advertisement on behalf of Genesisintermedia.com, Inc., and may not be construed as
investment advice. This advertisement does not provide an analysis of the Company's financial position and is not a
solicitation to purchase or sell securities of the Company. Readers should consult with their own independent tax,
business and financial advisors with respect to any investment, including any contemplated investment in the
advertised Company. All information contained in this advertisement should be independently verified with the
advertised Company and by an independent financial analyst. The Publisher, its affiliates, officers, directors,
subsidiaries and agents (collectively, "the Publisher") of this advertisement has been compensated by the Company.
Compensation includes forty-five thousand dollars cash, payable in monthly payments of fifteen thousand dollars
with the first payment of fifteen thousand dollars due immediately upon execution of this agreement and subsequent
monthly payments due on or before May 1, 2001 and June 1, 2001. In addition, the Publisher is entitled to receive an
option or warrant to purchase up to fifty thousand common shares of the Company's common stock currently held
by the Advisor, and exercisable as follows: ten thousand shares at twenty-three dollars per share, ten thousand
shares at twenty-four dollars per share, ten thousand shares at twenty-five dollars per share, ten thousand shares at
twenty-six dollars per share; and ten thousand shares at twenty-seven dollars per share. In preparing this
advertisement, the Publisher has relied upon information received from the Company, which, although believed to be
reliable, cannot be guaranteed. This advertisement is not an endorsement of the Company by the Publisher. The
Publisher is not responsible for any claims made by the Company. You should independently investigate and fully
understand all risks before investing. Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this advertisement are forward-looking statements
that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future
financial results, additional financing requirements, development of new products, governmental approval
processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions
and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. |
