PERRYSBURG, Ohio, May 9, 2005 (PRIMEZONE) -- Leisure Direct (OTCBB:LDTI) is a unique, innovative company in the pool, spa and backyard recreation industry. The company was founded in 1999, specifically to become a major competitor in that industry by consolidating the fragmented market and implementing a multi-faceted and direct approach to sales, marketing and distribution that can enable the company to provide a wide range of products and services for this industry. Leisure Direct intends to be both a manufacturer and retailer of outdoor, backyard recreational products and to deliver these products directly to customers nationwide. Leisure Direct is currently the only known manufacturer of both swimming pools and spas. The company has started this effort on a regional basis and is expanding nationally. In addition, the company also has a division in the direct import and marketing of household leisure and gift items.
The Backyard Recreation Industry Market
The pool, spa and back yard recreation industry is a growing one, currently estimated to be a $60 billion industry. Leisure Direct is initially targeting a $12 billion segment of that industry. Retail channels for the industry are extremely fragmented with only a small number of companies having any nationwide presence. As a result, there are more than 6,300 dealerships for pool and spa products east of the Mississippi River. All of these compete with each other for local sales and there is no visible coordinated approach to either customers or suppliers. The fragmentation of product distribution channels and retail outlets creates an ideal opportunity for consolidation.
Leisure Direct's Plan
Leisure Direct is working to achieve consolidation through the acquisition of a selected number of pool and spa dealers. Leisure Direct is currently negotiating Letters of Intent for the acquisition of two pool and spa dealers in the Northern Ohio and Southern Michigan regions. Leisure Direct intends to acquire more than 45 pool and spa dealers over the next 5 years.
As Leisure Direct builds its distribution network, it intends to acquire manufactures of other backyard leisure products to cross-sell through its network. Through these consolidation and direct marketing strategies, Leisure Direct anticipates growing to generate annual revenues of more than $128 million in the next 5 years.
Leisure Direct's Sales and Estimates
The following table sets forth Leisure Direct's estimates for revenue and earnings, based on potential acquisitions and availability of financing:
2006 2007 2008
Revenue $18.7 Mil $39.4 Mil $64.7 Mil
EBIT $2.3 Mil $4.8 Mil $9.0 Mil
Forward-Looking Statements: Certain information contained in this market report may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. While these statements are made to convey the Company's progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent managements' opinion. Actual Company results may differ materially from those described. The Company's operations and business prospects are always subject to risk and uncertainties.