"LA JOLLA, Calif., Dec. 07, 2017 (GLOBE NEWSWIRE) -- via NetworkNewsWire -- AV Group, Inc. (OTC:AVOP), a publicly traded investment and holding company, is issuing the letter below to shareholders to provide an update on achievements in 2017 and expectations for 2018 and beyond.
To Our Valued Shareholders,
In 2017, AV1 Group made significant strides to transform the company into a more focused enterprise poised for stronger, long-term growth. We completed a number of the vital strategic initiatives outlined in last year's shareholder letter to reshape AV1 Group for a stronger future. The most significant of these initiatives was entering into the lighting industry through the acquisitions of X-Fire, Inc. and Intelligent Lighting Solutions, Inc. Pivoting from these strategic transactions, our primary mission for 2018 is to realign our businesses and people into a single business platform that incorporates solutions for government, commercial and residential customers. This will ensure AV1 Group is prepared to quickly adapt to evolving market dynamics and return to growth as we create a broader and deeper line of solutions for our global customers' most complex challenges.
As 2017 comes to an end, we want to recognize the positive results of our determination to create a new path to long-term growth and prosperity in target markets. To this accord, AV Group signed sales agreements for lighting products and solutions, as well as agreements to install SMART pilot programs with a number of cities throughout the Midwest – all while simultaneously streamlining total enterprise cost structure to best operate in the current global environment. There was much accomplished during the year by our entire organization, and we recognize the need for additional work as we enter 2018 and further refine the business structure for greater sales and earnings momentum.
Given the challenging market conditions and regulatory issues surrounding the cannabis industry, we believe it is important to reform our strategies to drive long-term growth and shareholder value. We have signed a Letter of Intent to sell all cannabis-related software and commerce businesses, allowing us to have a sharp focus on lighting. We believe it is equally as important to provide greater transparency into our strategic planning process and projected use of capital so that all of our stakeholders have a clear understanding of the path forward and why AV1 Group will emerge stronger as a result of the significant transformation.
Targeting vast opportunities within the lighting industry, we will build a new strategic framework by creating value, delivering accelerated sales growth, increasing margins and cash flow, and furthering geographic expansion, particularly in emerging markets. The framework is set on a firm foundation provided by the highly focused enterprises acquired this year.
As we execute our core strategy, we plan to utilize operating cash flow for continued investment in internal programs and acquisitions while maintaining our commitment to increasing shareholder value. By focusing investments in our core served markets, we can tap into new revenue streams, expand our product and solutions offerings, drive margin growth, and increase earnings. The acquisition strategy will continue to focus on both bolt-on and strategic acquisitions of products and technologies that complement our current offerings and/or expand our solutions capabilities. By doing so, we can provide global customers with the most complete solutions.
Our recent acquisitions are closely tied to this strategy and will allow us to expand the geographic and product footprint of our already broad automation portfolio.
Our lighting solutions platform is comprised of products, businesses and technologies that are poised for growth in 2018. We will leverage the expected improvement in targeted end markets to fund increased investments in unique technologies and solutions as we continue to reshape these businesses for long-term value creation in markets involving energy efficiency, sustainability, and environmentally friendly technologies.
On behalf of the Board of Directors, we want to thank you, our shareholders, for your trust and confidence in us. I know we share the same vision for a more focused, profitable, growth-oriented AV1 Group. We all look forward to working with you as we continue to reposition AV1 Group for the future.
Sincerely,
Bryen Beglinger
Chief Executive Officer, AV Group, Inc."
