Sorry if repost - read so much my eyes are blurry.
FTS Group Plans Conference Call Next Week
March 27, 2008: 07:00 AM EST
FTS Group, Inc. (OTCBB: FLIP), an acquisition and development Company generating over $7 Million in sales during 2007, today announced that it will host a stockholder conference call next Thursday, April 3, after the market close. Call in details will be disclosed next week. Investors are urged to e-mail questions they would like to be addressed on the call to FTSGroup@aol.com.
FTS CEO Scott Gallagher commented, "It appears for some reason the market and investors do not fully understand the effects of the two recent transactions closed by FTS Group. First the OTG deal. We formed OTG Technologies Group, Inc., a wholly owned subsidiary of FTS Group, Inc. to operate and develop the assets we acquired from On the Go Healthcare, Inc. dba On the Go Technologies. These assets make up an IT Solutions provider that generates roughly $23 to $26 Million in annual sales. The Company generates gross profit margins in the range of 18% to 21%. We did not acquire the corporate overhead and management team of the public Company, On The Go Healthcare, Inc. Our financial modeling and projections are based on the new business being properly funded and a dramatic reduction in fixed operating costs. If we're successful in executing our plans the business should cash flow between $1.5 and $2 Million annually."
Gallagher continued, "With regards to the Elysium transaction, we sold our Internet Company Elysium Internet, Inc. to US Biodefense in exchange for a $1.5 Million Note and non dilutive preferred stock that convert into 60% of the issued and outstanding shares subject to certain restrictions. FTS immediately acquired significant assets expected to double stockholder value, the proceeds from the note will accelerate our convertible debt reduction plans. From a business perspective, Elysium now has the tools to build the Company from a start-up formed last July into a significant player in the Internet Media/Directory space. Both of these transactions will unequivocally have a positive impact going forward on the underlying value of FTS Group shares. And just to reiterate, we have no plans and will not effect a reverse stock split for any reason during 2008. My original shares were bought back in 2002 and were purchased for cash at $.03 a share, I own shares at $.20 as well so I feel the current market pain of our stockholders. Our current valuation is closer to that of an empty shell than a cash flow positive $30 Million Company. In the long run savvy investors taking advantage of the recent share decline should be very well rewarded. I plan to make additional open market purchases of FTS common stock after we come out of the current black out period. I look forward to further discussing the exciting opportunities these recent deals offer our Company and its stockholders on next weeks call."
