Company Forecasts Significant Earnings Increase of Approximately $15 Million to $17 Million or $0.24 to $0.28 Per Share for Fiscal 2008
October 17, 2007
Titan Global Holdings, Inc. (OTCBB:TTGL), 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™ 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.
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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.
