Here is an article that appeared on Mimami Herald for LTGL fans.
The stock is trading under 6 pennies right now.
Published: Monday, April 20, 1998
Section: Business Monday
Page: 1BB
NEON LIGHT MAKER
SAYS FUTURE'S BRIGHT
By JANA SOELDNER DANGER Special to The Herald
Part of America's ongoing love affair with cars has always been the search to find unusual accessories to snazz them up.
Spencer Krumholz, president of Liteglow Industries in Pompano Beach, has built a business providing accessories he
thought would turn out to be a short-lived fad: neon license plate frames and undercar neon lighting kits.
When a friend first brought in a version of the lighted license plate frame that became the company's signature accessory,
Krumholz wasn't impressed. ''It was crude -- not a finished product,'' he said.
''And when I saw it, I thought it was another pet rock -- just a fad. But now, nine years later, we're still selling it.''
Krumholz, who lived in New York, formed a company called Koolglo Industries and began manufacturing the frames in
Hong Kong and importing them. He later sold his interest in Koolglo with plans to retire. ''But then I decided to go back
into the business,'' he said.
In 1994, while still living in New York, he invested about $100,000 to start Liteglow Industries. The company did
approximately $900,000 in gross revenues the first year.
Later that year, Krumholz and his family moved to Florida, where company revenues increased to $1.4 million, then to $2
million the next year. Last year, revenues were around $2.8 million.
Still growing
Business at Liteglow continues to grow. The company announced Tuesday that sales for the first quarter of 1998 were
$695,564, a 16 percent increase over the same quarter last year. Net income was $46,987, a 453 percent increase over the
first quarter last year. .
''We've had our best first quarter ever, and we're improving our bottom line for two reasons: better sourcing of materials,
and the inclusion of Lowglo,'' Krumholz said.
Liteglow has 32 employees and sells its products through a network of about 100 independent sales representatives in the
U.S., Canada, and South America.
The company has recently begun building international business in countries such as the United Kingdom, France, Italy,
Spain, the Ukraine, Australia, Korea and Japan. Liteglow products are available in the United States at Circuit City stores.
In June 1996, the company went public at $1 a share. ''It gave us access to public markets for financing,'' Krumholz said,
adding that the company has raised about $750,000 through stock sales over the past year.
The stock (symbol: LTGL) closed at 5 cents Friday and has hovered around that level for several months.
''We're moving ahead and doing everything we think is right for our company and our shareholders,'' Krumholz said. ''I
think penny stocks are generally out of favor in the market right now.''
Last year, the company acquired Orlando-based Lowglow, a manufacturer of neon specialty items. ''Now we have both a
domestic and imported product line, and can cover all the bases in price,'' Krumholz said.
They are negotiating a joint venture in China, trying to buy part of another factory. If it happens, they may manufacture
additional products that include colored cruising lights and licensed products such as some that use team logos.
Making it special
Krumholz understands the desire to individualize and pamper an automobile. ''I've always loved cars,'' he said.
In his younger years he tried his hand at racing, then began selling custom accessories and speed equipment in New York.
Later he began importing car alarm systems. He ''realized I couldn't make a living racing, but I could make a living selling
racing accessories.''
Phil Bernstein of Eagle Houston Distributors, which distributes the company's products in Texas, said Liteglow is easy to
do business with and produces reliable products. Most of the customers who buy neon accent lights for their cars are
between the ages of 18 and 30, but the product seems to be catching on with older drivers, too, he said.
When Bernstein began handling the neon products in 1994, he didn't expect a long-term market. ''I've been saying for years
that this fad's going to die, but it just keeps going on and on,'' Bernstein said. ''It doesn't ever seem to stop.''
Fad goes on
Michael Demare, of Neon Flash 2000, a neon products manufacturer in Hollywood, said neon has wide appeal.
''People are looking for something unusual, and if you can create something unusual it's going to get a response,'' he said.
''People are also attracted to light, and to creativity.''
In addition to the neon license frame, which retails for about $59.95, and the undercar lighting kit, which has a retail price
tag of about $350, Liteglow sells other accessories like tinted bulbs for driving lights, and novelty items such as a lighted
soccer ball with peel-off flags for the 32 countries competing in the World Cup. That product will go on sale next month.
''I'm a gadget guy,'' Krumholz said.
The company's biggest seller, however, remains the undercar lighting kits. ''They add appeal without being garish,''
Krumholz said. ''Some people just like the way these products dress up their cars.'' |
