Company Sets Course for Continued Revenue and Earnings Growth in Several Multibillion Dollar Sectors
Sep 05, 2007 - Titan Global Holdings, Inc. (Titan) (OTCBB:TTGL), a high-growth diversified holding company, today defined the Company's strategic vision for fiscal year 2008. The announcement was made by Bryan Chance, President and Chief Executive Officer of Titan Global Holdings.
Titan owns and operates high-growth platform companies that compete in the dynamic sectors of energy, communications, consumer products, advanced technologies, and in homeland security. The company's corporate and divisional strategic vision addresses multibillion dollar market opportunities in each of these sectors.
Corporate Strategic Vision
- Continued improvement in balance sheet position of Titan to include a swing to positive shareholders' equity and continued de-leveraging of debt-financed transactions.
- Advanced development of Titan Global Brands, bringing more than 125 of the Company's well-known brands into synergistic alignment to the markets served by each division.
- Focused pursuit of listing the Company's stock on the NASDAQ exchange in fiscal 2008, aligning the growth trajectory of the company with the appropriate trading exchange.
Strategic Vision for Titan Global Energy Group
- Closing of Appalachian Oil Company as an initial platform and infrastructure.
- Increased integration of biofuel products through strategic agreements and acquisitions that will enhance core profitability at wholesale and retail distribution and environmental responsibility in the markets the Company serves.
- Continued integration of opportunities to vertically integrate our operations as a means to increasing our leverage and position in the energy product life cycle.
- Continued pursuit of additional acquisitions that add new markets and continued organic growth in contiguous markets.
Strategic Vision for Titan Communications
- Continued expansion of internal switching operations through the Company's Starttalk subsidiary.
- Added point of sale solutions to increase market exposure of existing products and accelerate cash flows from resulting sales.
- Continued diversification of Communications customer base to include large discount retailers and food and drug mass retailers.
Strategic Vision for Titan Global Brands
- Closing of the USA Detergents acquisition
- Accelerated growth of the divisions' laundry, cleaners and candle products through the addition of new distribution channels that will include convenience store chains and other points of distribution.
- Accelerated new product development to focus on the Company's patented single use delivery system of cleaners and personal use products.
Strategic Vision for Titan Electronics and Homeland Security
- Continued geographic diversification of customer base to limit impact of economic swings in the electronics and defense industries.
- Accelerated growth of the Company's innovative "rep-centric" sales approach.
Chairman's Comments on Titan's Strategic Vision
"Titan Global enters fiscal 2008 with unbridled optimism and opportunity," said David Marks, Chairman of Titan Global Holdings. "With the planned closing of our initial acquisition in the energy sector and our launch into consumer products, we plan to create value from a broad array of vibrant sectors."
Corporate Initiatives to Fulfill Stated Vision
Corporate Strategic Initiative 1 - Continued improvement in balance sheet position of Titan to include a swing to positive shareholders' equity and continued de-leveraging of debt-financed transactions.
We are projecting continued accelerated earnings in each subsidiary which will invert negative shareholders' equity to positive shareholders' equity in fiscal year 2008. Additionally, we will continue to utilize division cash flows to de-leverage acquired assets, improving the balance sheet strength of Titan, enabling the Company to aggressively pursue future complementary strategic asset acquisitions.
Corporate Strategic Initiative 2 - Advanced development of Titan Global Brands, bringing more than 125 of the Company's well-known brands into synergistic alignment to the markets served by each division.
We will continue to integrate our business units' brand management to leverage and optimize overlapping distribution channels. Currently, Titan's business units own or manage over 100 trusted brands that are distributed through efficient, overlapping and expansive distribution channels. Titan's distribution channels reach more than 65,000 retail locations throughout the United States.
Corporate Strategic Initiative 3 - Focused pursuit of listing the Company's stock on the NASDAQ exchange in fiscal year 2008, aligning the growth trajectory of the Company with the appropriate trading exchange.
"Given our progress on both organic and strategic levels, our Board of Directors concluded this was the right time to pursue listing on NASDAQ," said David Marks, Chairman, Titan Global Holdings. "While there is no guarantee the NASDAQ will accept Titan, we are confident that we can satisfy the requirements needed to achieve a listing."
Fulfilling Titan Global Energy's Stated Vision
Titan Global Energy Strategic Initiative 1 - Increased integration of biofuel products through strategic agreements and acquisitions that will enhance core profitability at wholesale and retail distribution and environmental responsibility in the markets we serve.
We will be one of the leading sources of fuel products in East Tennessee, Southwest Virginia and Kentucky with the purchase of Appalachian Oil Company, which is expected to close in September 2007. Our commitment to our shareholders and our stakeholders drives us to provide more environmentally efficient solutions that produce a greater financial return as well. As such, we are committed to increase our distribution of biofuels products to include increased ethanol blended products and biodiesel products. We plan to increase our access and distribution of biofuels products over 10% in fiscal year 2008.
Our strategic equity investors and management team will continue to pursue strategic supply agreements to increase our access to these biofuel products.
Titan Global Energy Strategic Initiative 2 - Continued integration of opportunities to vertically integrate our operations to increase our leverage and position in the energy product life cycle.
With the anticipated purchase of Appco, we will have strategic relationships with terminal operators that provide reliable access to the necessary fuels to supply our customers. During fiscal year 2008 and beyond, we will seek opportunities to expand our vertical integration efforts to add strategic relationships or acquisitions of such assets that further vertically integrate our efforts. With our seasoned sales team at Appco, we believe that we can rapidly increase the demand to outpace our planned increases in such supply.
Our strategic equity investors and management team are pursuing the strategic acquisition of domestic natural resources to upstream into Titan's distribution channels.
Titan Global Energy Strategic Initiative 3 - Continued pursuit of additional acquisitions that add new markets we serve and continued organic growth in contiguous markets.
With our planned acquisition of Appco, we will distribute petroleum products to more than 160 dealers in the southeastern United States and own and operate 56 convenience store locations. Appco's strong revenue base and storied 84-year history provide us with an ideal platform company for further expansion of our energy efforts. Furthermore, we will preserve and leverage Appco's industry-leading management team, which has more than 125 years' experience in the petroleum and convenience store industry.
As such, we will have an ideal platform company to assist in the aggressive pursuit of acquisition opportunities that will vertically integrate our supply chain and increase our distribution footprint to new strategic markets.
Fulfilling Titan Communications' Stated Vision
Titan Communications Strategic Initiative 1 - Continued expansion of internal switching operations through the Company's Starttalk subsidiary.
We will continue to expand internal network operations to increase our reach and improve our termination costs to the markets we currently serve. We will continue to leverage opportunities to increase our network of carriers and termination options so that we can optimize call quality and efficiency.
Titan Communications Strategic Initiative 2 - Added point of sale solutions to increase market exposure of existing products and accelerate cash flows from resulting sales.
We are continuing our pursuit of point of sale activation partners that will increase our reach and distribution and improve our cash flow. With point of sale activated products, we can increase the coverage of our products as products do not become "live" or "activated" until they are scanned through point of sale activation systems. Additionally, increased inclusion in these systems will improve cash flow as transactions are cleared in a similar manner to credit card transactions.
Titan Communications Strategic Initiative 3 - Continued diversification of Communications customer base to include large discount retailers and food and drug mass retailers.
We will continue to identify new channels to expand the reach of our international long distance and wireless communications products. We plan to add three large discount retailers or food and drug mass retailers in fiscal year 2008.
Fulfilling Titan Global Brands' Stated Vision
Titan Global Brands Strategic Initiative 1 - Accelerated growth of the division's laundry, cleaners and candle products through the addition of new distribution points to include chain convenience stores and other points of distribution.
We will leverage other divisions' expertise in chain convenience store distribution to accelerate our growth in our laundry, cleaning and candle products. Chain convenience stores provide profitable means of reaching our targeted customers nationwide which will increase our market share and profit margins.
Titan Global Brands Strategic Initiative 2 - Added commercial account distribution of cleaning products.
We will pursue the addition of commercial customers to the distribution of our cleaning and detergent products. The addition of commercial account customers will optimize our plant operations and add incrementally profitable sales to our increasing customer base in fiscal year 2008.
Titan Global Brands Strategic Initiative 3 - Accelerated new product development to focus on the Company's patented single use delivery system of cleaners and personal use products.
Through our planned acquisition of USA Detergents, we are acquiring intellectual property rights to single use delivery systems for cleaning products. We intend to increase the production of this technology in fiscal 2008 and identify new unique applications in new markets and with new products.
Fulfilling Titan Electronics and Homeland Security's Stated Vision
Titan Electronics Strategic Initiative 1 - Continued geographic diversification of customer base to limit impact of economic swings in the electronics and defense industries.
We will continue our efforts to obtain optimal geographic and industry diversity in our electronics group. Entering fiscal year 2007, our customers were highly concentrated in the Silicon Valley area and we were subject to economic swings in that regional economy. Entering fiscal year 2008, less than 50% of our customers are in the Silicon Valley area as we have added significant new customers in new industries nationwide that limit our exposure to any region's economic swings. We will continue these diversification efforts in fiscal year 2008 to better position this division for profitable and sustained growth.
Titan Electronics Strategic Initiative 2 - Accelerated growth of the Company's innovative "rep-centric" sales approach.
In fiscal year 2007, we increased our sales leadership in our electronics and homeland security division with the addition of Mike Kadlec. Mr. Kadlec championed our transition to a "rep-centric" sales approach which reduced our selling, general and administrative costs and dramatically expanded the reach of the Company through an independent sales representative network. We will continue to grow this network 25% in fiscal year 2008 as we seek to gain market share through increased on-time deliveries and enhanced operational performance.
Final Comments
"Our strategic initiatives for fiscal year 2008 are ambitious and aggressive and designed to fulfill our corporate and divisional vision," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Our dedicated business unit leaders and our corporate leadership are committed to executing these initiatives and fulfilling our vision. Our goal is the material increase in shareholder value."
Titan Global Brands
Titan recently announced the formation of Titan Global Brands to integrate, protect and expand brand management capabilities and to leverage and optimize growth from the Company's distribution channels. Through its diverse family of subsidiaries, Titan owns or manages more than 100 trusted brands that are distributed through efficient, overlapping and expansive distribution channels. Titan's distribution channels reach over 65,000 retail locations throughout the United States and in over 200 countries around the world.
About USA Detergents
USAD distributes mixed truckloads of nationally recognized laundry, cleaner and candle brands at attractive prices and in unique merchandising configurations by leveraging brand extensions and licensing agreements with consumer product conglomerates. USAD's brands include Xtra, Arm & Hammer, Aim, Close-up, Pepsodent, Betty Crocker, Snapple, Fine Care, Brillo, Touch of Glass, Fabulous and Oxymax. USAD's distribution footprint serves small and mid-sized retailers, wholesalers and distributors that serve metropolitan areas in the U.S. and internationally.
USAD generated revenues of $56.8 million in 2006. As of today, USAD's backlog is $3.6 million and its sales trend is positive. USAD manufactures its products at a plant of 206,000 square feet in Hillside, New Jersey. USAD distributes its products from a 175,000-square-foot warehouse in Brunswick, New Jersey. Its corporate headquarters is in offices of 10,000 square feet in Brunswick, New Jersey. USAD has 71 employees.
About Titan Global Holdings
Titan Global Holdings, Inc. is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets, advanced technologies and energy. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.
Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels, estimated at more than 60,000 retail outlets.
Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including homeland security and high-tech clients.
For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
