TELEPLUS ENTERPRISES INC %%% NEWS%%% - 500 Beiträge pro Seite

[thefan1]

TelePlus announces 4th quarter and year-end results stronger thanexpected: sales increased 75% and 47% respectively
MONTREAL, Apr 14, 2004 /PRNewswire-FirstCall via COMTEX/ -- Teleplus Enterprises, Inc. (NASDAQ OTCBB "TLPE") reported today its results for the 4th quarter and the year ended December 31, 2003. Sales for the 4th Quarter ended December 31, 2003 increased $1,181,381 (or 75%) to $2,756,959 as compared to $1,575,578 for the same period a year ago. Gross profit increased to 34% for the 4th Quarter ended December 31, 2003 from 33% for the same period a year ago. The Company had an EBITDA of $133,688 and net income of $53,248 for the 4th Quarter ended December 31, 2003, as compared to an EBITDA of $19,922 and net loss of $ 4,210 for the same period a year ago.
Sales revenues for the fiscal year ended December 31, 2003 increased $2,458,939 (or 47%) to $7,651,975 as compared to $5,193,036 for the fiscal year ended December 31, 2002. Gross profit as a percentage of sales decreased to 27% for the fiscal year ended December 31, 2003 from 33% for the fiscal year ended December 31, 2002. The Company had a negative EBITDA of $577,231 and net loss of $715,787 for the fiscal year ended December 31, 2003, as compared to an EBITDA of $99,189 and net income of $33,873 for the fiscal year ended December 31, 2002. The shift from positive net income to a net loss was primarily due to lower handset margins resulting from the financial restructuring of the company`s largest wireless supplier. Such supplier completed its restructuring at the end of the 1st quarter of 2003 and subsequently increased its handset margins to the company starting at the end of the 3rd quarter of 2003. Margins on handsets in 2004 have returned to higher levels experienced historically.
Financial highlights, in thousands of US dollars (except percentage and per share data), are:

<<
Three months Years Ended
ended December 31, December 31,
2003 2002 2003 2002



10KSB: TELEPLUS ENTERPRISES INC
(EDGAR Online via COMTEX) -- ITEM 6. MANAGEMENT`S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This report contains forward looking statements within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934. These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results, including those set forth under "Factors that may affect future results" in this Management`s Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this report. The following discussion and analysis should be read in conjunction with "Selected Financial Data" and the Company`s financial statements and notes thereto included elsewhere in this report.

OVERVIEW
The Company was originally incorporated in Nevada as Terlingua Industries, Ltd. on April 16, 1999. The Company`s business plan was to engage in online marketing and distribution of organic herbal supplements in an international market. On January 27, 2000, the Company changed its name to HerbalOrganics.com, Inc. ("HerbalOrganics"). Prior to the transcations discussed below, the Company had not generated any revenues from operations and was considered a development stage enterprise, as defined in Financial Accounting Standards Board No. 7, whose operations principally involved research and development, market analysis, securing and establishing a new business, and other business planning activities.
On October 10, 2003, Visioneer Holdings Group Inc. ("Visioneer") subscribed to purchase 18,050,000 restricted, newly issued shares of the Company`s common stock, $.001 par value per share. Also on that same date, Visioneer purchased 23,750,000 shares of issued and outstanding common stock from Thomas Whalen, the Company`s former Chief Executive Officer. As a result of the subscriptions and the purchase, control of the Company shifted to Marius Silvasan, the beneficial owner of Visoneer.
In September 2003, the Company formed a wholly-owned subsidiary, Teleplus Retail Services, Inc., a Quebec, Canada Corporation ("Teleplus Retail"). In October 2003, Teleplus Retail purchased substantially all of the assets of 3577996 Canada Inc., a Canada Business Corporation ("3577996"), that related to 3577996`s "TelePlus Consumer Services" business.
The Company is a leading provider of wireless and portable communication devices in Canada. Its products include wireless handsets and services from major Canadian carriers, international phones, satellites, home phones and other mobile electronic devices including an exclusive line of international GSM world phones.

MISSION STATEMENT
Provide North American consumers with innovative wireless products and services. Delivery of such services will occur through our company owned retail stores, retail partners and through the operation of our virtual wireless network.

MARKETING STRATEGY
Currently there is a good fit between the Company`s resources and the opportunities and threats posed by its external environment. The Company has a diversified product mix that is complemented with unique accessory offerings. The Company currently has prominently displayed, attractive, strategically located retail outlets, experienced employees and management and strong supplier relations. Growth will come in three folds.

GROWTH IN CANADA:
The Company currently operates 22 TelePlus branded stores in two Canadian provinces. The Company intends to increase to 47 the number of TelePlus branded stores by 2007. These stores are expected to be located in major metro centers. The Company announced the signature of an LOI with SMARTCELL see "Recent Business Developments" section for details.
TelePlus finalized in November 2003 a contract for the operation of wireless kiosks in SAM`S CLUB from Wal-Mart Corp. TelePlus currently operates 5 SAM`s CLUB wireless concessions. TelePlus intends to work with SAM`s Club to open additional wireless concessions.

GROWTH IN THE UNITED STATES:
TelePlus intends to deploy a private label wireless program under the "TelePlus" brand name in the US. TelePlus initiated final development of its private label wireless service as announced in a news release dated March 17, 2004. TelePlus Wireless Corp. ("TelePlus Wireless"), a fully owned subsidiary of TelePlus Enterprises, Inc. will offer such services on behalf of the Company. Offering private label wireless services is commonly referred to as creating a Mobile Virtual Network Operator ("MVNO"). This market was developed first in Europe, where we can find over 20 MVNO`s. Virgin Mobile of England and Wireless Maingate of Sweden were among the first group of MVNO`s launched in Europe. TelePlus intends to make its phone available at superstores and vending machines throughout the US.

COMPARISON OF OPERATING RESULTS

FISCAL YEAR ENDED DECEMBER 31, 2003 COMPARED TO FISCAL YEAR ENDED DECEMBER 31,
Sales revenues for the fiscal year ended December 31, 2003 increased $2,458,939 (or 47%) to $7,651,975 as compared to $5,193,036 for the fiscal year ended December 31, 2002. The increase in sales revenues was due to the increase in same store sales and number of retail outlets versus the previous year.
Cost of revenues for the year ended December 31, 2003 increased $2,074,505 (or 59%) to $5,577,043 as compared to $3,502,538 for the fiscal year ended December 31, 2002. The increase in cost of revenues was due to the increase in revenue and lower handset margins resulting from the financial restructuring of the company`s largest wireless supplier. Such supplier completed its restructuring at the end of the 1st quarter of 2003 and subsequently increased its handset margins to the company starting at the end of the 3rd quarter of 2003. This resulted in higher margins in the 4th quarter of 2003 but nonetheless affected negatively the Company`s overall margins in 2003. Margins in 2004 have returned to higher levels experienced historically.
Gross profit as a percentage of sales ("gross profit margin") decreased to 27% for the fiscal year ended December 31, 2003 from 33% for the fiscal year ended December 31, 2002. The decrease in gross profit margin was due to the 59% increase in cost of revenues that was slightly mitigated by the 47% increase in sales revenues.
General, administrative ("G&A") expense for the fiscal year ended December 31, 2003 increased $1,140,382 (or 69%) to $2,786,603 as compared to $1,646,221 for the fiscal year December 31, 2002. The increase in G&A was due to higher recruiting cots associated with the increase in the number of stores, increase in head office costs to support the expansion of the Company through the end of 2005, and investments made in obtaining the agreement for the management of the Sam`s Club Canada wireless concessions. As revenues are expected to grow through 2004 and 2005, G&A expense as a percentage of total revenues is expected to decrease.
The Company decreased its advertising expense for the fiscal year ended December 31, 2003 by $98,000 (or 78%) to $27,000 as compared to $125,000 for the fiscal year ended December 31, 2002. The decrease in advertising expense was due to increased co-op funding received from the Company`s suppliers. Such co-op funds were setoff against the Company`s cost of advertising.
Interest expense decreased to $2,458 for the fiscal year ended December 31, 2003 from $3,706 for the fiscal year ended December 31, 2002.
The Company had a net loss of $715,787 for the fiscal year ended December 31, 2003, as compared to net income of $33,873 for the fiscal year ended December 31, 2002. The shift from positive net income to a net loss was primarily due to lower handset margins resulting from the financial restructuring of the Company`s largest wireless supplier. Such supplier completed its restructuring at the end of the 1st quarter of 2003 and subsequently increased its handset margins to the Company starting at the end of the 3rd quarter of 2003. Margins on handset sales in 2004 have returned to higher levels experienced historically.
As of December 31, 2003, the Company had an accumulated deficit of $685,160.

LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2003, total current assets were $2,245,057 which consisted of $100,804 of cash, $1,204,293 of accounts receivable, net of an allowance for doubtful accounts, $843,813 of inventories, and $96,147 of prepaid expenses.
As of December 31, 2003, total current liabilities were $3,033,174 which consisted of $2,596,799 of accounts payable and $436,375 of accrued expenses.
The Company had negative net working capital at December 31, 2003 of $(788,117). The ratio of current assets to current liabilities was 0.74.
The Company had a net increase in cash of $24,667 for the fiscal year ended December 31, 2003 as compared to a net decrease in cash of $38,434 for the fiscal year ended December 31, 2002. Cash flows from financing activities represented the Company`s principal source of cash for the fiscal period ended December 31, 2003, as compared to the fiscal period ended December 31, 2002, in which cash flows from operating activities represented the Company`s principal source of cash. Cash flows from financing activities during the fiscal period ended December 31, 2003 were $663,049, consisting of proceeds in the amount of $675,838 from the issuance of common stock that was offset by $12,789 that was attributable to payments on loans payable to shareholders. During the fiscal year ended December 31, 2002, the Company made $39,648 of payments on loans payable to shareholder and did not receive any proceeds from the issuance of common stock.
During the fiscal period ended December 31, 2003, the Company had $136,205 cash used in operating activities as compared to the fiscal period ended December 31, 2002, where the Company had $249,113 cash provided by operating activities. The cash used in operating activities for the fiscal year ended December 31, 2003 was due to accounts receivable that increased by $1,021,362, inventories that increased by $226,293, prepaid expenses that increased by $67,893, other assets that increased by $74,939 and income taxes payable that decreased by $25,898, which were offset by accounts payable that increased by $1,515,116 and accrued expenses that increased by $346,411. The cash provided by operating activities for the fiscal year ended December 31, 2002 was due to accounts payable that increased by $512,584, accrued expenses that increased by $89,964, and income taxes payable that increased by $10,577, which were offset by accounts receivable that increased by $43,270, inventories that increased by $334,955, prepaid expenses that increased by $17,413 and other assets that increased by $57,159.
Capital expenditures were $505,809 for the fiscal period ended December 31, 2003 as compared to $248,392 for the fiscal year ended December 31, 2002. The expenditures represent negative cash flows from investing activities.
The Company requires $4,300,000 of additional capital to support strategic acquisitions and its current expansion plans, of which the Company received $750,000 in December 2003. In March 2004, Excalibur SA made a commitment to invest $1,000,000, of which the Company has received $500,000 in equity financing subsequent to December 31, 2003. The Company has no commitments from officers, directors or affiliates to provide funding. The failure of the Company to obtain adequate additional financing may require the Company to delay, curtail or scale back some or all of its expansion plans. Any additional financing may involve dilution to the Company`s then-existing shareholders.

COMMITMENTS FOR CAPITAL EXPENDITURES
The Company has several operating leases, primarily for office space and storage under which the Company is required to pay operating costs such as maintenance and insurance. Rental expense for the operating leases for the years ended December 31, 2003 and 2002 was $657,132 and $376,566, respectively. As of December 31, 2003, the minimum lease payment under these leases during 2004 was

CDN$677,727.

RISK FACTORS
Need for Additional Financing. It is imperative that the Company obtain debt and/or equity financing of $4,300,000 to implement its business plan and to expand its business. The Company raised $750,000 through the sale of 750,000 shares of common stock to three entities not affiliated with the Company. In March 2004, the Company received a commitment for $1,000,000 in equity financing, $500,000 of which the Company had received as of March 31, 2004. The Company is taking steps to raise additional equity capital or to borrow additional funds. There can be no assurance that any new capital will be available to the Company or that adequate funds will be sufficient for Company operations, whether from the Company`s financial markets, or other arrangements will be available when needed or on terms satisfactory to the Company. The failure of the Company to obtain adequate additional financing may require the Company to delay, curtail or scale back some or all of its operations and will hinder its ability to expand its business. Any additional financing may involve dilution to the Company`s then-existing shareholders.
Reliance on Key Management. Our success is highly dependent upon the continued services of Marius Silvasan, our Chief Executive Officer, and Robert Krebs, our Chief Financial Officer, Benoit Bube, our Vice President of Sales & Marketing, Darren Lisak, our Director of Procurement and Logistics and David Spencer, our Director of Business Development. If any of the foregoing persons were to leave us, it could have a materially adverse effect upon our business and operations.
Proposed Tax Assessment. Teleplus is involved in proceedings with the Minister of Revenue of Quebec ("MRQ"). The MRQ has proposed an assessment of for the Goods and Services Tax ("GST") and Quebec Sales Tax ("QST") of approximately CDN$471,000. The proposed tax assessment is for CDN$265,000 for QST and CDN$346,000 for GST. Teleplus believes that certain deductions initially disallowed by the MRQ for the QST are deductible and is in the process of compiling the deductions to the MRQ. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies.
Dependence on Major Client. As of December 31, 2003 the Company had an agreement in place with Wal-Mart Corp. for the management of SAM`s Club Canada wireless concessions. The Company currently has in operation 5 SAM`s Club wireless concessions. As more SAM`s Clubs open the Company will become more dependent for its revenues on SAM`s Club. Should SAM`s Club wireless concessions not yield the expected revenues this could have a materially adverse effect upon our business and operations. We are actively seeking to broaden our customer base and expand our product and service offerings. We executed an LOI to acquire SmartCell on April 5th, 2004 and have expressed a willingness to expand SmartCell`s operations in Western Canada. We need to continue to broaden our customer base and product and service offerings. If we are unable to broaden our customer base, the continued reliance upon few large customers could have a materially adverse effect upon our business and operations.
Limited duration of agreements in place with major wireless carriers. The Company`s current sales volumes have enabled the Company to build strong relationships with a variety of wireless and communication partners thus, minimizing the risks associated with the non-renewal of any of the Company`s agreements.
No product exclusivity. The current market consolidation undertaken by the major wireless carriers limit the Company`s risk associated with no product exclusivity as new retail players can`t readily get access to the products and services offered by the Company.
Rapid product obsolescence. The wireless and communication market place faces rapid product obsolescence requiring the Company to maintain short inventory cycles and technically enabled sales consultants.
Price erosion. The Company is faced with high price elasticity resulting in the erosion of its margin on certain products. Price wars oftentimes occur in the industry which could have a negative impact on profit margins.
Issuance of a large number of wireless licenses increasing the number of competitors. Wireless carriers could revert to the issuance of additional wireless licenses which could increase the number of competitors. This could reduce our same store sales and erode our margins.
The Company`s ability to hire and retain experienced industry professionals; the Company requires the services of skilled professionals which if unavailable could adversely effect the Company`s performance.
The Company`s ability to secure competitive pricing arrangements in a market dominated by larger retailers with higher financial resources. Profit margins in the wireless and communication industry are low. The Company`s larger competitors, who have more resources, have the ability to reduce their prices significantly lower than current prices that would further reduce profit margins. Should such an event occur and the Company chose not to offer competitive prices, the Company could lose its market share. If the Company chose to compete, the reduction in profit margin would have a material adverse effect on the Company`s business and operations. The Company`s ability to achieve economies of scale is critical to its long-term viability.
Uncertain growth in market demand: Current market conditions indicate a strong growth of wireless products in the upcoming years. Nevertheless technological development and unstable economic growth may affect current forecasts which could have a material adverse affect on the Company`s business and operations.

CRITICAL ACCOUNTING POLICIES
Our discussion and analysis of our financial condition and results of operations is based upon our audited financial statements, which have been prepared in accordance with accounting principals generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of any contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to uncollectible receivable, investment values, income taxes, the recapitalization and contingencies. We base our estimates on various assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements:
Impairment of Long-Lived Assets
Property and equipment are stated at cost less accumulated depreciation. Major renewals and improvements are capitalized; minor replacements, maintenance and repairs are charged to current operations. Depreciation is computed by applying the straight-line method over the estimated useful lives of machinery and equipment (three to seven years). The majority of Teleplus` long-lived assets are located in Canada. Teleplus performs reviews for the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Revenue Recognition
Teleplus` revenue is generated primarily from the sale of wireless, telephony products and accessories to end users. Teleplus recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collectibility is probable.
Teleplus recognizes product sales generally at the time the product is shipped. Concurrent with the recognition of revenue, Teleplus provides for the estimated cost of product warranties and reduces revenue for estimated product returns. Sales incentives are generally classified as a reduction of revenue and are recognized at the later of when revenue is recognized or when the incentive is offered. Shipping and handling costs are included in cost of goods sold.
Teleplus` suppliers generally warrant the products distributed by Teleplus and allow returns of defective products, including those that have been returned to Teleplus by its customers. Teleplus does not independently warrant the products that it distributes, but it does provide warranty services on behalf of the supplier.
Inventories
Inventories consist of wireless and telephony products and related accessories and are stated at the lower of cost, determined by average cost method, or market.

(c) 1995-2004 Cybernet Data Systems, Inc. All Rights Reserved

Received by Edgar Online Apr 14, 2004

CIK Code: 0001133754
Accession Number: 0001214782-04-000167

[powerautomation]

Wow! das hat keiner erwartet!

Jetzt aber nichts wie rein in den Laden! Kursziel 3 Dollars - vorerst!


Grüssle
P WER

wusste doch dass alles hier stimmt. In Amiland ist die Message noch net ganz durchgesickert!

STRONG BUY!

[thefan1]

Mmmm na ja:

sagen wir mal so: die Verluste im Jahr 2003 nach Steuern
haben die Amis glaube nicht erwartet...deswegen der Abschlag heute.
Ansonsten denke ich trotzdem keine schlechte Firma mit rießen Potential.


Mfg ( Halten )

[P47]

Das hört sich vielversprechend an.

[thefan1]

sehen die Amis im Moment leider etwas anders.

13:41:21 1.750 800 OTCBB
13:41:01 1.750 2000 OTCBB
13:40:58 1.740 2000 OTCBB at Bid
13:40:44 1.740 5000 OTCBB at Bid
13:40:09 1.750 500 OTCBB at Bid
13:40:09 1.740 500 OTCBB at Bid
13:39:54 1.740 1500 OTCBB at Bid
13:39:39 1.740 3000 OTCBB
13:38:58 1.750 1000 OTCBB
13:37:11 1.740 1600 OTCBB at B

[thefan1]

Aber die Aussichten sind jedenfalls gut.
Ich werde bei den Kursen nochmal nachlegen.

Mfg

[powerautomation]

Ich würde sagen - jetzt agressiv kaufen und 6 Monate liegen lassen! Kurs dann: 3 Dollar.
Wir sprechen uns wieder!

POWER

[thefan1]

ES geht los:
Die Amis decken sich ein !!!
Der abschlag war doch zu hoch ???


Last 10 trades


Time Price Volume Exchange Info


13:56:30 1.750 5000 OTCBB
13:55:54 1.750 500 OTCBB
13:53:13 1.750 5000 OTCBB at Ask
13:52:39 1.750 400 OTCBB at Ask
13:52:38 1.750 1000 OTCBB at Ask
13:51:36 1.750 1000 OTCBB at Ask
13:50:29 1.740 2500 OTCBB
13:50:26 1.750 2000 OTCBB at Ask
13:49:42 1.750 900 OTCBB at Ask

[thefan1]

13:59:43 1.760 3600 OTCBB at Ask
13:59:37 1.760 15000 OTCBB at Ask <---------
13:59:37 1.750 15000 OTCBB <----------
13:58:04 1.751 500 OTCBB at As

[thefan1]

jetzt gehts aber schwer zur sache übern teich
fette käufe aus m ask

[thefan1]

Time Price Volume Exchange Info


14:04:46 1.760 1000 OTCBB
14:04:46 1.750 1000 OTCBB
14:03:12 1.760 200 OTCBB at Ask
14:03:07 1.760 8000 OTCBB at Ask
14:03:07 1.755 8000 OTCBB
14:02:31 1.760 8500 OTCBB at Ask
14:02:31 1.750 8500 OTCBB

[thefan1]

Kuckt euch den Schluss an !!!

16:20:34 1.790 73000 OTCBB <------ = 130.670 US $
16:00:25 1.750 2000 OTCBB
16:00:19 1.760 200 OTCBB at Ask
15:59:33 1.760 2000 OTCBB at Ask
15:57:23 1.750 1800 OTCBB

Mfg

[InvestorenInfo]

Es ist ein Chat mit dem CEO von TelePlus, Marius Silvasan, für kommenden Donnerstag, 22. April 2004 abends geplant.

Wer hat Interesse dabei zu sein?

[powerautomation]

Ich.

Danke für die Info !

grüssle

P wer

[InvestorenInfo]

Wenn mir die Zugangsdaten zum Chat vorliegen, werde ich sie hier bekannt geben - für alle Interessierten.