rrat02
13 years ago
Roth Capital Presentation
Think that it went well....my notes:
- only trying to sign web syndication clients that they can do a 7 figure business with...as of today have 77 clients
- will be announcing another client soon....when earnings are announced
- estimating that web syndication revenue will be $60+ million in 2012
- 40+% of revenue is NFL related
- Nike has reduced the # of companies allowed to sell NFL product
- sports licensed items, apparel, etc....the manufacturers protect their clients by requiring certain pricing, etc. 50% margins are common.
- dramatically expanding the amount of warehouse space...hoping to consolidate some of it into 1 huge location. Also looking to automate packaging, etc.
- a pair of Zubaz pants sells for $30 and Dreams cost is $5
- actively negotiating with potential clients (40 open files). NBA teams, NFL teams, colleges, etc. Includes 'big' clients that if signed could result in a material impact to results.
- all divisions should be profitable in 2012
rrat02
13 years ago
The Fans Edge store locations in the Chicagoland area should have a great year as both the Bulls and Black Hawks have really strong teams. The Black Hawks have 4 (Toews, Kane, Hossa, and Sharp)of the top offensive players in the league and also 2 rookies (Jimmy Hayes, Andrew Shaw) that are generating a lot of buzz....still early on the rookies though. Of course the Bulls have league MVP Derrick Rose although he has missed some games with a toe injury. With the new GM (Theo Epstein) regardless of the team record there will be a lot of interest in the Cubs. Hoping for the best with the White Sox....new manager Robin Ventura is a class act. Sales of Bears items should benefit from a new NIKE design.
In terns of expansion in the brick & mortar space on the recent CC management mentioned that they are more interested in adding kiosks to sporting goods stores, etc. but would not rule out eventually opening stores in a "4 sport" city. If that were the case my choice would be Dallas.