| Press Release Source:
Titan Global Holdings, Inc.
Titan Global Holdings
Issues Record Earnings Guidance for Fiscal 2008
Wednesday October 17,
4:01 pm ET
Company Forecasts Significant Earnings
Increase of Approximately $15 Million to $17 Million or $0.24 to $0.28
Per Share for Fiscal 2008
DALLAS--(BUSINESS WIRE)--Titan
Global Holdings, Inc. (OTCBB:TTGL - News), a high growth diversified holding
company, has released initial earnings guidance for fiscal year 2008 in
the range of $15 million to $17.5 million, or $.24 to $.28 per diluted
share. The record projected earnings growth is a direct result of the Company's
aggressive acquisition strategy and high-growth business model that has
recently resulted in the acquisition of Appalachian Oil Company and USA
Detergents, as well as the launches of Titan Global Energy, Titan Global
Brands and Titan Card Services in fiscal 2007.
This earnings guidance
excludes the impact of any additional strategic acquisitions and development
stage organic initiatives at Titan's units. The projected operating earnings
exclude expenses and income related to the valuation of derivative financial
instruments such as stock warrants and convertible debt instruments.
In addition, Titan has
revised its previously issued revenue guidance of $747 million for fiscal
year 2008, based on material developments since the previous guidance.
As a result, the Company announced that revised revenue guidance for fiscal
year 2008 will be in the range of $735 million to $747 million.
Contributing to the increase
in fiscal year 2008 revenue, Titan Wireless recently completed a large
distribution agreement with a national retail chain that will enhance its
fiscal year 2008 revenue.
Contributing to a decrease
in fiscal year 2008 revenue were delays in the recent closings of Titan's
acquisition of Appalachian Oil Company and USA Detergents, and the retail
launch of Titan Card Services.
"Titan is poised for
unprecedented revenue and earnings growth in fiscal 2008," said Bryan Chance,
President and Chief Executive Officer of Titan Global Holdings. "We are
very focused on integrating and growing our newly formed Titan Energy Group
and Total Global Brands. As we integrate these operations, we expect to
leverage synergistic growth initiatives that will enhance Titan's shareholder
value. As well, we are focused on improving our balance sheet and completing
opportunistic acquisitions for the value-added benefit of our shareholders."
Titan Global Energy
- Projected Revenues: $433 Million
Titan recently formed
Titan Global Energy (Titan Energy), a division engaged in the acquisition
and management of complementary energy sector assets. Titan Energy has
and will capitalize on earnings opportunities within the energy sector.
Titan Energy will aggregate energy assets which can provide significant
opportunities for revenue and earnings growth.
Titan Energy recently
acquired the outstanding stock of Appalachian Oil Company ("Appco"), a
company that owns and operates an extensive petroleum product distribution
network that generated approximately $400 million in revenues for fiscal
2006. Appco distributes petroleum products to more than 160 dealers in
the southeastern United States and owns and operates 56 convenience store
locations. Appco has more than 550 employees and maintains long standing
partnerships with strategic terminal operators and major oil companies.
"Appco provides an ideal
platform from which to make significant additional acquisitions," said
Mr. Chance. "The revenue forecast for this division is based upon the status
of Appco's current operations and market conditions within the energy sector.
Titan continues to work diligently with its supplier partners to introduce
biofuels and other products to maintain a position of leadership in the
markets that we serve."
Revenue Projections
by Division
Titan Communications:
Projected Revenue $174 Million
Titan's Communications
division is comprised of Oblio Telecom (distribution), StartTalk (international
network operations), Titan Wireless (wireless operations) and Pinless (e-commerce
applications). The integration of these units positions the Company to
continue its accelerated growth in fiscal 2008 with rapid delivery of new
products and more efficient call termination options. Including recent
agreements, Titan's Communication Division increased its distribution channels
to over 71,000 retail outlets. The Communications Division generated $89
million in revenues in 2006 and generated over $80 million in revenues
for the nine months ended May 31, 2007.
"Our Communications Division
continues to show solid year-over-year growth that we believe will continue
to be one of Titan's main drivers of shareholder value," said Kurt Jensen,
President and Chief Executive Officer of Titan Communications and Card
Services. "Our recent settlement with AT&T will have a positive impact
on fiscal year 2008 as will our organic growth and strategic initiatives
to expand our market share and build our brand equity."
Titan Global Brands:
Projected Revenue $53-65 Million
This week Titan completed
the acquisition of 80% of the outstanding stock of USA Detergents, Inc.
(USAD). Of the remaining shares, Church & Dwight owns 7.5% and the
remaining 12.5% is controlled by the existing senior management of the
reorganized USAD.
"We view USAD as a compelling
acquisition for Titan with significant and immediate opportunities for
revenue and earnings growth," said Frank Orlando, President and Chief Executive
Officer of USA Detergents, Inc. "Our USAD management team is working closely
with Titan's senior management team to exploit USAD's opportunities. Additionally,
we will leverage synergies with Titan's existing distribution, products
and services to immediately increase USAD's revenue streams and margins."
Titan Card Services:
Projected Revenue $45 Million
Titan recently announced
the formation of Titan Card Services, Inc., to capitalize on the burgeoning
multibillion dollar international prepaid money transfer sector. The launch
of Card Services further validates the Company's high-growth business model
and provides a seamless brand extension for Titan's growing family of prepaid
products, currently sold through a nationwide network of more than 71,000
retailers.
Given Titan's familiarity
with the prepaid sector and the specific needs of its core demographic
customer base, which includes first and second generation Americans, the
Company's senior management identified a significant need in this growing
market to transfer funds internationally. Titan anticipates that its branded
Guardian(TM) prepaid calling card products will be on retail shelves in
January 2008.
"We expect to leverage
our trusted position and brands with first and second generation Americans
to expand our offerings into money transfer services, under our Guardian
family of products," said Mr. Jensen. "With our creative and user-friendly
approach and our established distribution network of more than 71,000 retail
locations serving this burgeoning demographic segment, we expect high operating
margins and rapid consumer acceptance of these products."
Titan Electronics
and Homeland Security: Projected Revenues $30 Million
Titan's Electronics and
Homeland Security Division includes Titan PCB East, Inc. and Titan PCB
West, Inc. These companies specialize in the manufacturing of advanced
circuit boards and other high technology products for military and high-tech
clients. Titan has announced that this division will realize this record
performance through continued efforts to increase its market share in the
quick-turn market through its innovative "rep-centric" sales organization.
Additionally, the division expects to grow its valued military spec business
as well.
"We closed our fourth
quarter of fiscal year 2007 with great momentum," said Curtis Okumura,
President of Titan's Electronics and Homeland Security Division. "In fiscal
2008 we will reap the rewards of Mike Kadlec and Saul Kennedy's efforts
to redefine our sales approach and geographic reach this past year. We
have successfully broadened geographic diversity in our customer base extensively
and we are not as dependent on specific geographic areas or sectors. Our
team looks forward to producing significant shareholder returns in fiscal
year 2008."
Closing Comments
Mr. Chance added: "We
enter fiscal 2008 with great focus by our management team and tremendous
support from our strategic equity and finance partners. I look forward
to reporting Titan's continued progress and growth during fiscal 2008 and
beyond."
About Titan Global
Holdings
Titan Global Holdings
is a diversified holding company with a dynamic portfolio of subsidiaries
spanning international telecommunications, electronics and homeland security,
consumer products and energy resources. Through our nine wholly-owned subsidiaries,
we take advantage of valuable synergies between our subsidiaries to maximize
revenue growth, internal development and strategic acquisitions. In fiscal
2006 Titan generated in excess of $109 million in revenues on a consolidated
basis and projects fiscal 2008 revenues up to $747 million. Titan's operating
divisions include the following:
Titan's Telecommunications
Division addresses a range of high-growth markets in the telecommunications,
wireless and mobile segments. Companies include Oblio Telecom, Inc. the
second largest publicly-owned company focused on the international prepaid
telecommunications segment, StartTalk, Inc., Pinless, Inc., Titan Wireless
Communications, Inc. and Ready Mobile.
The Titan Global Energy
Division aggregates traditional and next-generation energy and fuel assets
that can provide significant opportunities for growth in one of the world's
largest and most critical markets.
Titan Global Brands integrates,
protects and expands brand management capabilities to leverage and optimize
growth across Titan's worldwide distribution channels. We own or manage
more than 100 brands that are distributed through efficient, overlapping
and expansive distribution channels.
Titan Card Services capitalizes
on the burgeoning multibillion dollar international prepaid money transfer
sector. The Card Services division provides a seamless brand extension
for Titan's growing family of prepaid products, currently sold through
a nationwide network of more than 71,000 retailers.
Titan's Electronics and
Homeland Security Division includes Titan PCB East, Inc. and Titan PCB
West, Inc. These companies specialize in the manufacture of advanced circuit
boards and other electronic products for classified military and defense
department customers, and other 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 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 Reform 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
rates 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.
Contact:
Trilogy Capital Partners
Financial Communications:
Ryon Harms, Toll-free:
800-592-6067
ryon@trilogy-capital.com
Source: Titan Global
Holdings, Inc. |