AVT released an internal case study regarding the financial potential of their company-owned Marley Coffee Automated Stores, and the division's impact on total company revenues.
The systems allow consumers to obtain a freshly ground and brewed cup of the highly prized Marley Jamaican Blue Mountain Coffee, and are being built and owned by AVT for placement in high-traffic locations throughout the nation.
Each Marley Coffee Automated Store will generate an average of $2000 revenue per month (range of $1500-$2500 per unit is expected). Assumption (1) is based on AVT's years of experience in both vending manufacturing and owning one of the most well regarded vending routes in the nation. This combined experience with similar name brands and products (beverage and coffee dispensing) allows AVT management to conclude that the $2000 per month figure is both realistic and attainable.
AVT plans on placing 1,000 company-owned units during 2013. These units will be built continuously throughout the year, and installed on a monthly basis. Revenues will ramp up in a linear manner, with a year-end division revenue rate of $2 million per month.
Forecast for year-end 2013 is that the Marley Coffee systems will add $12 million in new revenues. Forecast for year-end 2014 is that the Marley Coffee systems will add $24 million in revenues. New units will continue to be added as deemed appropriate for 2015 and beyond.
Costs to build, deliver and market the full run of 1,000 systems is estimated at $5 million.
Projected company revenues are forecast to be $50-$60 million by year-end 2014. AVT management believes that as the company reaches a critical mass, growth within the foreseeable future will continue at a similar pace.
Existing and projected orders from current customers.
A conservative expectation to receive the same amount of new business that "walks in the door" as in recent years.
Revenues from the new Marley Coffee division.
According to financial analyst Francis Gaskins, Editor-in-Chief of IPOdesktop.com and frequent contributor to Bloomberg Television and CNBC, AVT is currently under valued and should be trading around $10 based on the above. Additionally, if the company can meet their stated goals, the company's stock should be in the $15-$20 range.
For more information on AVT, please call 800-240-5175 or visit the website at www.autoretail.com.
AVT had a large order from Rug Doctor in 2012, which required the company to repurpose 60,000 square feet of manufacturing and build new assembly lines. Now with that order fulfilled, AVT is geared up for large-scale production orders that provide economies of scale. "Now that we have our assembly lines geared up, we can provide even better service to our large customers, as well as continue to provide the type of customization and short-orders that made this company famous," Illingworth stated.
To read the Gaskins/IPODesktop Analyst Review of AVT, please click here.