1/17/2007 5:07:03 PM ET News Release Index
Nexia Holdings Announces Record, Preliminary 2006 Annual Revenues Increase 378% Year-Over-Year
SALT LAKE CITY, UT, Jan 17, 2007 (MARKET WIRE via COMTEX News Network) --
Nexia Holdings, Inc. (OTCBB: NEXH), a diversified holding company with operations in real estate, health & beauty, and the fashion retail industry, announced today it expects to report record revenues for the year ended December 31, 2006. The Company announced preliminary, unaudited total revenues of $1,874,568 for the year ended December 31, 2006, representing an increase of 378%, compared to total revenues of $392,414 reported for the year ended December 31, 2005.
Revenues from salon and fashion operations account for $1,623,702 of the total 2006 revenues (unaudited). Fourth quarter revenues were $380,108 for Landis Lifestyle Salon ("Landis") and $297,689 for Gold Fusion Laboratories, operator of the Black Chandelier retail franchise. Both entities showed impressive revenue increases from the immediately preceding quarters.
Nexia Holdings, Inc. CEO Richard Surber noted, "Same store comparisons can not be done on a year-over-year basis, as three of our four Black Chandelier retail locations opened late in 2006. Our location in Trolley Square, however, is nearing its third year of operations, and showed remarkable improvement. Comparable same stores sales for Trolley Square increased 55% to $287,046 in 2006 from $185,426 reported in 2005.
"Landis began operations in November of 2005, providing comparable sales information for the month of December. Landis reported $151,027 in sales for the month of December 2006, an increase of 87%, compared to sales of $80,663 for the month of December 2005. Our goal is to increase revenues by 40% for the single Landis location during 2007. Landis' gross annual revenues are expected to increase from $1.33 million (unaudited) in 2006 to $1.9 million for 2007. Additional locations to be rolled out in 2007 could further increase Landis' annual revenues. Expansion plans call for the opening of two additional studios during the next 12 to 18 month period as trained personnel and funding become available," added Surber.
Surber concluded, "I am very optimistic that 2007 will be another record breaking year for Nexia as we further develop and grow our operations. Nexia's current plans are to open at least 50 additional Black Chandelier retail locations throughout the United States over the next five years. Our goal is to achieve $50 million in gross annual revenues by the fifth year of operations for Black Chandelier. This goal is driven by an aggressive expansion strategy, but we believe it is feasible provided we are able to raise sufficient capital to fund our growth."
Gold Fusion Laboratories currently operates 3 Black Chandelier retail locations in Salt Lake, one store in Provo, Utah, and an online store at www.blackchandelier.biz. Black Chandelier designs, produces, and manufactures a majority of the items sold under the trademarks: Black Chandelier, Jared Gold, Olfactory Surrealism and Pink Chandelier. The stores also carry merchandise from Wrangler Jeans, Le Sportsac, Taschen books, Lomography Cameras, and Tokidoki Italy. To find additional information about Black Chandelier go to www.blackchandelier.com.
Nexia strongly encourages the public to read the above information in conjunction with its Form 10-KSB for December 31, 2005 and for the subsequent quarters during 2006. Nexia's disclosures can be viewed at www.nexiaholdings.com and www.sec.gov.
About Nexia Holdings, Inc.
Nexia Holdings, Inc. (OTCBB: NEXH) is a diversified holding company focused on three areas of development: Real Estate -- seeks out the acquisition and renovation of undervalued real estate properties which have the potential to increase in value and generate positive cash flows. Health & Beauty -- owns a majority interest in Landis Lifestyle Salon, http://www.landissalon.com, a successful, revenue generating hair salon built around the world-class AVEDA(TM) product line. Fashion Retail -- focuses on those designers with signature style and who have proven themselves in the fashion industry across multiple vertical markets. The Company has ownership in Black Chandelier, www.blackchandelier.com, an innovative women's clothing designer and retailer. For more information, visit http://www.nexiaholdings.com.
This press release contains forward-looking statements that are based on a number of assumptions, including the successful completion of the marketing plans and expansion of Black Chandelier operation in a short period of time. The above statements further assume that Nexia can obtain sufficient capital to execute expansion plans through outside investments including but not limited to obtaining significant leasehold improvements and sufficient lines of credit to fund the design and manufacture of Black Chandelier products on a substantially larger scale. Nexia's assumptions are further contingent upon the appeal of its products and concepts to at least one major or national REIT or other retail shopping mall owner. There are no assurances that such assumptions will prove correct. These forward-looking statements involve a number of risks and uncertainties, including an expectation of substantial increase in sales. The actual results that Nexia Holdings may achieve could differ materially from any forward-looking statements due to such risks and uncertainties.
Nexia Holdings, Inc.59 West 100 South, Second FloorSalt Lake City, Utah 84101OTC Bulletin Board Symbol NEXHFOR MORE INFORMATION, CONTACT:Richard SurberPresident801-575-8073 x 106Fax: 801-575-8092Contact via http://www.marketwire.com/mw/emailprcntct?id=29CA149B806D42B4orFor Investor Relations:OTC Financial NetworkRick McCaffrey781-444-6100x625Contact via http://www.marketwire.com/mw/emailprcntct?id=18C4E00A5880DBD8http://www.otcfn.com/nexh
SOURCE: Nexia Holdings, Inc.
http://www.otcfn.com/nexh
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