Profit from a Unique Player in a $30 Billion Industry
-- Leisure Direct, Inc. (OTCBB: LDTI) is a unique and innovative company in the $30 billion pool, spa and backyard recreation industry
concentrating its efforts in specializing in direct marketing of its product lines.
-- Leisure Direct's expansion strategy is to achieve consolidation in a highly fragmented industry through strategic accretive acquisitions
and utilizing centralized Customer Service Centers to incorporate a Direct Marketing approach to maximize sales and profits.
-- Leisure Direct is in the final stages of completing several retail acquisitions, including the "Model" retail store that will be used
as a prototype to acquire its entire distribution base. This store has sales of $4.8 million with an EBIT of almost $1.0 million.
In addition, LDI is currently in advanced talks with several other potential acquisitions targets which would bring the first year
sales total to $34.8 million with a total EBIT of $5.3 million.
Ground-Floor Opportunity
Leisure Direct, Inc. (OTCBB: LDTI) is poised to become a national leader in the manufacture and installation of pools, spas and backyard
leisure products within this $30 billion industry. There are currently over 10,000 dealerships nationwide for pool and spa products, the
vast majority of which are disconnected and compete for business at high cost. The highly fragmented nature of the industry has made it
exceptionally difficult for current players to streamline sales, operations, and services for their customers. The result has more often
than not led to expensive products and mediocre service from the customer perspective. From the manufacturing and sales perspective a
great deal of energy and resources are lost and a considerable amount of time is needed to try to build customer relationships at the
local level only. However, the level and depth of these local customer relationships offers tremendous opportunity for Leisure Direct,
who can acquire these local stores which have typically been in business for 15-25 years and use the customer relationships that they have
built to cross sell a large number of additional products.
Leisure Direct will utilize these customer relationships, along with its existing manufacturing, products, and services infrastructure to
maximize savings and quality of service to customers. Simultaneously the company will profit from lower price of manufacturing, more
efficient and pervasive sales capabilities, and stronger connection to broad customer networks previously established over the many years
of development of the industry by independent dealerships. The company's core competency in direct marketing and sales will fit ideally
with its current business plan, as it will efficiently reach regional and local consumers and modify its product offering according to
their individual needs. More importantly, this business approach will make immediate use of already existing dealerships to showcase its
products without having to invest further in new building structures.
The payoff from this significant consolidation results from lower set up costs, more efficient use of manufacturing operations and distribution
through access to improved economies of scale, and an immediate broad source of customers. Leisure Direct will quickly establish a national
marketing presence and the capacity to provide local delivery and service. Fragmented and disconnected competitors will find it difficult
to compete under the pressure established by the Leisure Direct business model. Thus potential investors may stand to profit significantly
from owning a part of this company at this early stage.
Risk Reduction
Leisure Direct mitigates risks whenever and wherever possible in order to contribute to the success of both the Company, and more importantly,
its investors. The Company business plan boils down to the following focal points:
- Consolidation of an extremely fragmented market
- Employment of a direct marketing and direct sales strategy
- Establishment and building of a national brand name
- Cross-selling of a multitude of related products
- Establishment of a one-stop shopping source for consumers
- Creation of greater value by a lower cost to consumers and larger profits for Leisure Direct share holders
Significant and Real Growth Opportunity
Leisure Direct has identified acquisitions with combined sales of over $150 million. These acquisitions are a combination of dealers and
manufacturers. With over 10,000 dealers nationally and 6,300 East of the Mississippi River, Leisure Direct will be able to quickly grow its
distribution base through acquisitions. It is anticipated that the dealer acquisitions will be purchased at $.25 - $.35 on the sales dollar
and two (2) times EBITDA.
Quality Product Offerings
Leisure Direct will continue to expand its backyard leisure offering to include furniture, fireplaces, barbecues, ponds, games, equipment
and other backyard leisure products with customer demand and profitability. This will be a means of giving consumers a balanced and expansive
quality product offering at a reasonable cost. Other products will include but are not limited to:
| - Above Ground and Below Ground Pools and Spas | - Portable Saunas |
| - Air Domes for Pools | - Spa Covers |
| - Automated Pool Cleaners | - Saunas |
| - Automatic Pool Controls | - Swim Spas |
| - Pool Chlorinating Systems | - Chemicals |
| - Pool Heaters Pool | - Pool Tables |
| - Pool Pumps | |
Competitive Advantages
- Leisure Direct will manufacture and direct market pools, spas and other backyard leisure products with a national and international presence.
It will offer consumers the distinct advantage of buying low cost from a single reliable source. The company will continue to build its product
offering making its level of service and product availability very difficult to duplicate by competitors.
- The company will take advantage of a lower cost, more efficient distribution channel from which it can ship its growing number of products.
Products will be delivered directly to consumer's site.
- Growing high quality product offering gives consumers access to pool, spa and backyard leisure products not normally available from one location.
- Direct factory to consumer approach offers better client contact and potential for strong, loyal relationship formation. Establishing a direct
relationship with consumers is by far the most efficient way to serve them, eliminating confusion resulting from interaction with the middle person
and reseller intermediaries. Consumers interact more comfortably in this streamlined process where they have more reliable and quick access to resources.
- Leisure Direct will use state of the art technology to help a customer design their backyard from the comfort of their living room. Using
satellite feeds, GPS technology and videos/pictures of the property uploaded by the consumer, Leisure Direct can help design a backyard based on
the soil content of the area, size and shape of the property and the consumer's input.
Leisure Direct's Projected Sales and EBIT
The following table sets forth Leisure Direct's estimates for revenue and earnings before interest and taxes. These estimates are for the first three
(3) full years of operation after acceptable financing is sourced. These estimates are based on potential acquisitions LDI has identified. These
estimates are forward looking and are based on acquiring and closing the identified acquisitions and the availability of financing.
| Year (1) | Year (2) | Year (3) |
| Revenue | $34.8 Mil | $58.4 Mil | $86.2 Mil |
| EBIT | $5.3 Mil | $6.8 Mil | $12.7 Mil |
Rationale for Leisure Direct Investment
- We are Public (Exit Strategy).
- LDI's stock is trading at an all-time low (3 yr. range; $3.74 - $.021)
- Tight Capital Structure (1,500,000 shares in Trading Float—about half of those have a cost basis above $2.00).
- Management is shareholder and market conscious.
- Low operating cost (About $10,000 a month operating cost including being public cost).
- We have a mature, believable, scaleable Business Plan.
- We have identified acquisition candidates (over $150 million in combined sales).
- Seasoned management that has had Public Market experience.
- We have identified our opportunities and our problems.
- Management is committed and has invested in the company.
- Low debt and burn rate. Acquisitions are accretive.
- Can purchase companies for $.25 - .50 on sales dollar and finance them for $2-3 sales dollar (4-12 times leverage).
Experienced Management
Officers and Executive Management
John R. Ayling – Chairman of the Board
John R. Ayling is Leisure Direct's Chairman of the Board, its largest shareholder,
and co-founder. Since 1989, he has served as president of Continental Capital Management, Inc., a Sylvania, Ohio, money
management firm. From 1983 to 1988, he served as a Vice President at Oberweis Securities. From 1969 to 1982, he managed
accounts for individuals and institutions with Bell & Beckwith, a Toledo, Ohio broker dealer. Mr. Ayling is a NASD registered
representative and holds Series 7, 24, and 63 licenses. From 1966 to 1968, he served as a Captain with the U.S. Army. Mr.
Ayling has helped launch several start-up operations, financed several business enterprises, and provided management support
and development for all phases of management, with an emphasis on business integration and financial controls. Mr. Ayling is
a graduate of the University of Toledo.
Robert Dapper – President
Robert Dapper is the founder of Royal Spa Manufacturing, based in Indianapolis, IN. He started
Royal Spas as an engineering student at Purdue University, incorporated in 1983, and has grown the company to one of the most
successful spa manufacturing and distribution companies in the industry, with its wholly owned stores, and over 60 affiliated
dealers in 17 states.
David Clark – Vice President of Business Development
David Clark has over 25 years of experience in planning, launching and
growing businesses with both large public companies and entrepreneurial ventures. He has proven international expertise in
strategic planning, business and product development, sales and marketing and strategic alliances with several companies including
Mellon Bank, Ernst & Young and Hogan Systems. As CEO of an early stage venture, he received the Growth 100 Award from Kelley
School of Business at Indiana University.
Ernie Stevens – Vice President of Operations
Ernie Stevens has 29 years of senior operations experience in the pool and spa
industry. In 1987, Mr. Stevens joined Clark Manufacturing, d/b/a/ Sundance Spas, as Director of Operations. At the time, Clark
Manufacturing was the U.S.'s second largest spa manufacturer. From 1979 to 1987, he served as Manufacturing Manager of Printronix,
a manufacturer of advanced dot matrix printers. From 1975 to 1979, Mr. Stevens was Plant Manager for Far West, Inc. Leisure Time
Products, and a custom and recreational vehicle manufacturer. From 1973 to 1975, he was Operations Manager of Imperial Vans, a
manufacturer of recreational vehicles. Mr. Stevens received his advanced management training at Long Beach City College, Orange
Coast College and the University of California Irvine School of Management.
In addition to the officers and management, Leisure Direct intends to put into place two advisory boards; a Business Advisory
Board, and a Technology Advisory Board.
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section
27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be
forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual
performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties
including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.
Contact:
John R. Ayling, Chairman
Leisure Direct, Inc.
1070 Commerce Drive, Building II – Suite 303
Perrysburg, OH 43551