Thugnificent...we are more than halfway at this point in launch....Please read thje following company bullitin and hang on...it's gonna be a biggie soon
FLCR is getting ready to rock with the skinny in the following company shareholder bullitin. It's been a long time coming but it is in the first stage of launch.
August 2, 2016
2016 Bulletin #2
The following Bulletin has been posted on our www.fullcircleregistry.com Announcements Page.
Dear Stockholders of FullCircle Registry, Inc.
We are excited to announce that FullCircle Entertainment, Inc. has recently engaged the services of Jon Findley of Stage1 Development, LLC in Indianapolis to assist us in creating development plans for our movie theater and property. Mr. Findley has considerable experience with developmental activities in our immediate area and will be helping us coordinate the extensive “down the stretch” activities to proceed with our plans.
Our continued GOAL is to change our business model and convert the theater into a restaurant and lounge with entertainment. The plans include substantial remodeling events including turning our parking lot into daylight at night. Mr. Findley will be assisting me with detailed planning related to these initiatives along with our search for funding.
These plans were originally developed in 2013 and we have been attempting to source funding since then. In 2014 we stopped because we had a letter of intent for a lease but after research they elected to vacate the lease in October 2014. Our LISC application for funding is still pending, but we have decided to forge ahead independently, seeking capital by offering investors an opportunity to purchase up to 25% of FullCircle Entertainment, Inc. This investment will allow us to begin converting our theaters to the dine-in cinema model that has proven so successful nationwide.
We believe that rising real estate prices have affected our theater property in Indianapolis, which should assist us in the theater conversions and related financing.
We will be releasing bulletins that identify our conversion process and will be releasing the private memorandum to interested stockholders.
The reason for this major change is:
1. Restaurant attendance and revenue has increased nationally.
2. Theaters that have converted to recliner seating have doubled their attendance in the first year.
3. Theaters that have converted to recliner seating AND began “in-theater” food and beverage service have realized increases of more than 400% in ticket sales and an increase of 700% in total revenues.
4. We believe that in just a few years the theater business model that we know today will be gone or drastically changed.
5. We need to be proactive to deal with the movie companies releasing the movies for distribution to satellite, Cable, Netflix, etc. earlier every year.
The plans for conversion of the theaters to the dine-in cinema model include:
1. Converting nine of our auditoriums from stadium seating to recliner seating, ONE auditorium at a time. Given the size of the recliner space required, we will be dropping our current 1,839 seats to approximately 1,145 seats.
2. Changing our #4 auditorium into a full service kitchen.
3. A major remodel of the theater with increased lighting and new glow in the dark carpet in our auditoriums for safety issues.
4. Upgrade all sound systems to current technology.
5. Substantially increase our lighting in and around our facility. We wish to turn our parking lot into daylight to improve our security image.
6. Modernize the face of our theater and tie in an apartment complex and retail shops to present a new look to our area.
7. Change the name of the theater to identify our restaurant and lounge services.
The plan is solid if we can acquire the funding to proceed. The theater industry is in a major transition and, if we can be in the hunt before the major theater companies near us respond, we will have a great edge.
Even with doing one auditorium at a time we believe that this movement will generate improved attendance sufficient to enable us to work on some of the remodeling plans with our operations cash flow along with the lighting project which will also add to the area image correction. We believe that once a few of the auditoriums are converted, the results will generate a “snowball effect” for access to additional funding to complete our project.
As we have reported before in our filings, we believe that the dine-in cinema model is the future of the theater industry as the movie companies continue to move rapidly into the distribution of their movies to other marketing events. It is our opinion that theaters as we know them today will start to disappear since it is nearly impossible to be profitable on the revenues from just concession sales. The movie companies continue to increase our rental expenses. Some movies are now requiring a 64% rental fee. This is not leaving much room for us to cover our expenses and overhead, so the food and beverage services need to be expanded.
Moving forward, our plans combines two industries (restaurant and theater) into one. This provides us with two different marketing and revenue directions with one overhead structure.
We are in communication with a major restaurant company. At this time we cannot predict a relationship with them but it is a potential option. National restaurant companies are waking up to this new business model. With over 3,000 independent theaters in the U.S. and Canada, it could provide substantial revenue increases if a national restaurant chain decided to operate these restaurants with entertainment.
One competitor, Studio Movie Grill, has experienced a 700% increase in revenues from their conversion in 2013 of a theater on 86th street, just ten miles from us. This theater did a complete revision to not only recliner seating but added a kitchen and provides in-theater dining and beverage services. Studio Movie Grill is basically a restaurant chain that outsources movie theater operations. They have grown to over 30 locations since 2010.
Another example is Circle Center in downtown Indianapolis, seven miles from us, which experienced a 200% increase in revenues the first year after just a conversion from standard stadium seating to recliner seating in late 2014. At this time these are the only two theaters in greater Indianapolis that have made any substantial changes.
A key point to consider is that Studio Movie Grill has experienced this revenue increase with a total of four theaters inside five miles. Georgetown 14 has NO competition within 7.5 miles, servicing a population of 250,000 according to the 2010 census.
According to our forecasts, once we convert the theaters to a dine-in model similar to Studio Movie Grill, FullCircle Entertainment Inc. revenue will increase to approximately $4.5 million by the end of 2018, with a net income of approximately $870,000 in 2018 after a full year operating as a restaurant with entertainment.
It is time to find new alternative sources of funding.
Our LISC application is not dead but it is just taking too long to move through the bureaucracy to be considered for our funding requirements. The LISC.org application for funding continues to be a lengthy process. We are burdened with lengthy bureaucratic and committee schedules. We have recently received communication from LISC that they wished for us to again revise some of our application’s content. We have provided information and application amendments since July 2015 and have had multiple meetings with the LISC management.
In order to fund the initial conversion of the theater, we plan to obtain new funding by selling 25% of FullCircle Entertainment for $500,000 in $20,000 increments. Our last appraisal for our property in 2015 was at $5.2 million not counting equipment. We will present this opportunity to existing stockholders and to new investors who realize the potential. We will also approach local business establishments that would strongly benefit from the new theater business model The business community around us is very supportive and we all believe that this theater remodel and business model change will benefit everyone.
Most of our professional consulting services have been paid for with our FullCircle Registry common stock. Because of the short attack we have had to increase the number of shares to pay for those services. Consequently, we are nearing the 200 million authorized share amounts and will need to increase that level to enable us to continue to issue shares for services.
We continue to struggle with theater attendance especially at night since our area still has a high crime image. Actually, the crime in the area is very low compared to the past because of the new developments, but the image lingers. We expect that once our funding becomes available and the conversion with the lighting increase is complete, nighttime attendance will improve.
The Lafayette Square Mall area has been economically depressed for the last 15 years. At one time it was the largest mall in Indiana. Development of that property could not be considered because of a long lasting lawsuit between Sears and the mall owners. In late 2015 the lawsuit was settled and we are beginning to see some development activity planning. This is important to us because we are directly across Lafayette Road from the mall.
Since the City of Indianapolis designated the Lafayette Square Mall area as the “International Marketplace” district, there has been increasing attention paid to the area by developers.
A new apartment complex proposal on the north side of Lafayette Square Mall is under consideration. In addition we understand that a new hotel may be approved on the south side of the mall on 38th street near us.
Just as it has been a tough climb for our Lafayette Square neighborhood, it has been an equally tough climb for all of us as investors. Now, with a strong new dine-in cinema business concept and breaking through a few logjams with a new approach to funding, we believe that our revenues will improve.
It has also been a long struggle for me personally since we do not have funding to be able to employ assistance for these projects. My workload exceeds 80 hours a week. My time over the last four years has been devoted to solve our theater attendance problems. However, I continue to remain optimistic about our plans - even considering all of our funding U turns
Again, I encourage you to sign up to be on our email blast list. All releases are not only posted on our web page but we immediately send those releases out to our stockholders who have signed up to receive these via email
I always welcome emails and calls from our investors and will immediately take your calls if I am not on the phone.
Sincerely,
Norman L. Frohreich, CEO
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