CORONA, Calif., Sept. 24, 2014 /PRNewswire/ -- AVT, Inc.
(OTC Markets: AVTC) (www.autoretail.com), a leader in automated
retailing systems and custom vending machines, announced today that
they have filed financial statements on the OTC Markets site. These
unaudited reports provide an update on business and detail for
company performance through June 30,
2014.
In a statement to shareholders, company founder and chairman
Shannon Illingworth expressed his
thoughts. "Today we filed financial statements on the OTC Markets
site, which are unaudited, and below I have provided an update on
our business which is reflected in the financial statements. These
statements provide detail for our performance through June 30, 2014.
"Before I do that let me address an on-going issue of which you
are all well aware; the completion of our audited financial
statements for the years 2012 and 2013, and their filing with the
SEC. I have shared with many of you the timelines that were
provided to me by our auditors and by the outside firm that we
hired to assist in their preparation and audit, and have watched
each of those deadlines come and go without the promised result.
Those of you who have known me for some time will agree that I am
demanding but fair, hopeful but realistic. You will also know me as
someone who is not patient when it comes to pursuing the
opportunity and the promise of AVTC.
"As the last months have unfolded, I have gone through a range
of emotions that I have shared with many of you, from frustration
to anger, disappointment to disbelief, that a process that
objectively should be simple, has become so complex, time consuming
and horribly delayed. Most of all, for those of you who have
invested your money into AVTC this could create a 'crisis of
confidence' in my leadership of your company. Your continued and
unwavering support is appreciated and has not gone unnoticed.
I also realized that the best thing I could do would be to
continue to focus on the changing landscape in our industry, and to
find the opportunities within those changes. As I trust you will
see, we have reason to be as excited about the business today, as
ever in our history.
"During one of my conversations with David Wells, the CEO of StoryCorp Consulting,
with whom we contracted to complete the audits with our outside
auditors, he offered to assist in addressing our shareholders to
provide a perspective on the situation, and confidence that full
financial statements will soon be completed. While appreciative of
his offer, I declined, knowing that I am responsible for AVTC and I
will remain so even during this frustrating situation.
"Our company has experienced tremendous growth within a short
time frame. While this is wonderful, it has also presented us with
a new set of challenges, including bringing on the proper staff and
hiring the correct external teams to assist us in our operations.
We did not meet this challenge in a timely manner.
"Turning to our current business, there are several points that
I would like to highlight:
- Revenues for the 6 months ending June
30, 2014 are nearly identical to that of same period
2013.
- Direct costs associated with those sales have dropped by
approximately $250,000.
- Gross margins have increased to 53%.
- Operating costs have dropped dramatically, from 67% of revenues
to 44% of revenues, allowing us to post a profit for the
period.
- We have implemented several cost reduction and efficiency
projects, which led to the successful reduction of overhead.
- Interest has been reduced by approximately $350,000. Even though some of this is not paid in
cash it is an important cost reduction.
"Some things to look for during Q3:
- Ramping up production of Opticwash Pro systems, with 1,000
units on purchase order.
- As reported in our 8-K, a new contract with a major fitness
company to outfit locations nationwide with our healthy food and
beverage systems.
- Also reported in our 8-K, the development of an exciting new
system for a major manufacturer of a popular children's computer
learning tablet, scheduled for placements within national retail
chains.
- Significant expansion of Marley Coffee Automated Cafe
locations.
- BurritoBox franchising locations, leading to ramped up
production.
- Reaffirmation of our patent on certain wireless capabilities of
vending machines, which we will begin licensing – creating a new
and ongoing revenue stream.
"In conclusion, there will always be bumps in the road during
times of growth, and we will adjust as necessary and move on, with
our eyes firmly focused on the future growth of AVT.
"Again, I thank all of our valued shareholders for their
support, patience and understanding. I can speak on behalf of the
entire company when I say that our future looks bright and we look
forward to the opportunities ahead."
For more information on AVT, call (877) 424-3663, or visit:
www.autoretail.com.
Media Inquiries:
The Innovation Agency
Inov8.us
SOURCE AVT, Inc.