General Finance and Development, Inc. Announces 2nd Quarter Results
The Highlights Include a 179% Increase in Net Income for the Period
Aug 16, 2012, 08:00 ET
SAINT PAUL, Minn., Aug. 16, 2012 /PRNewswire/ -- General Finance and Development, Inc. (OTC: GFDV) announced today 2nd quarter results for 2012.
The highlights are summarized below. However, we urge investors to read our Quarterly Report for Period Ending June 30, 2012. The report is posted at www.genfd.com and www.otcmarkets.com. The limited information that follows in this press release is not adequate for making an informed investment judgment.
- The highlights include realized net income of $50,568 for the 2nd quarter compared to net income of $18,119 for the 2nd quarter of 2011.
- The company showed a 42% increase in sales orders as of mid-year compared to the same period in 2011. The majority of the sales orders are projected to convert into revenue during the 3rd quarter of 2012. The company is ahead of sales projections for the year.
- Total assets for the Company were $1,150,029 at the end of the 2nd quarter 2012 compared to $904,415 at 2011 year-end. The Company showed $6,921 in long-term liabilities at the end of the 2nd quarter 2012.
- Current assets exceeded current liabilities by a multiple of 2.25 to 1 at the end of the 2nd quarter.
During the 2nd quarter the development efforts were focused on GFD's main operating subsidiary Corporate Art Force (CAF). CAF has been piloting a comprehensive asset management program for artwork being marketed as the SmartArt Program™.
During the quarter a SmartArt Finance Program was introduced that allows for organizations to implement a rotating art program for as little as $125 per month with a purchase option at the end of the agreement. Three distinct benefits include cash preservation, a return-on-investment philosophy and the flexibility of the program. Management of CAF believes that the SmartArt Finance Program will allow for a larger segment of the market to utilize the company's services. CAF has posted new job openings for business development and marketing staff to specialize in the rollout and ongoing sales distribution.
The sales and marketing initiatives will include an inbound and outbound call center integrated with digital and email marketing. The website www.smartartprogram.com is also being developed that will include video presentations, artwork images and project rooms. The artwork categories will include traditional art and art created by emerging artists that will have asset appreciation potential.
CAF management believes when managed properly, art provides an intrinsic return on investment evidenced by improved employee retention and productivity, customer and public awareness and patient outcomes for healthcare organizations. With the new program organizations may also select artwork that will potentially increase in value over time.
Since inception in September 2009, CAF has framed and distributed over 16,000 pieces of artwork for more than 150 clients to locations in 40 states.
Corporate Art Force is unique in that there is not an extensive inventory or single gallery that artwork is sold from. The motto "The World Is Our Gallery" explains the CAF philosophy of working directly with artists who meet the criteria established by the company's proprietary art selection committee. The company has over 2,000 artists who provide artwork for CAF and clients.
CAF management believes the market for the services they provide is estimated to be over $1 billion and there currently is no single provider who has as much as 10 percent of the market. The industry is considered to be fragmented and non-standardized and CAF believes there is an opportunity to capture a significant share of the market within the next several years by recruiting and training art consultants who will become certified as part of the company's proprietary Art Consultant Certification Program.
General Finance and Development, Inc. provides capital and business development services to small and medium size companies. Capital is provided to qualified companies by equity and/or strategic loan agreements. Business development services include business planning, organization and management development. GFD also pursues merger/acquisitions and joint venture projects.
The foregoing material may contain forward-looking statements. We caution that such statements may be subject to uncertainties and that actual results could differ materially from the fore-going statements. Readers accordingly should not place undue reliance on these forward-looking statements which do not reflect anticipated or unanticipated events or circumstances occurring after the date of these forward-looking statements. More information regarding General Finance and Development including financial statements and reports is available at the company's website www.genfd.com and www.otcmarkets.com.
General Finance and Development, Inc.
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