February 28, 2021 Quarter
New York, New York., April 19, 2021 (GLOBE NEWSWIRE) -- Daniels consolidated quarterly results are indicative of an incubator fulfilling its corporate aim - successfully achieving its goal of advising and financing its premier subsidiary in the Transportation Services segment of the Trucking Industry. Daniels continued to umbrella the expansion efforts of its subsidiary through financing sources that continue to be expensive in nature. Management believes the capital costs were warranted and helped produce a stellar performance for its key growth engine - Payless Truckers, Inc.
For the Quarter, Payless Truckers had Total Revenues of $1,212,914 and Gross Profit of $450,782. Its net profit was $84,668 and its EBITDA $164,516. Gross Margins / profits expanded significantly for both Payless businesses due to strong product demand and improved cost controls. The subsidiary is on track to do close to $4.5 Million in revenue with significant profit potential. In comparison, for entire fiscal year 2020, Payless booked a small loss and EBITDA of $71,470.
The flip business - that could be categorized as “truck trading” - selectively buys, adds electronic improvements for safety and location, provides cosmetics, advertises and resells — booked Truck re-sales of $995,852. Astute trading acquired the trucks at a direct cost of $686,296. Added related costs produced a cost of goods sold of $757,429.62, for a 24P% gross profit margin. During the quarter, especially In January and February, truck prices were strong, allowing our re-sales to generate high margins.
The Program business — our rental fleet that now numbers twenty-two trucks - had rental income of $209,640 for the quarter with direct costs of only $5,000. A year ago, this business only generated $22,000 In rental income with nominal costs. This continues to be a high margin business, and the one that has the potential to be scale- able for significant growth because of its predictable gross cash flow / earnings potential stream.
During the quarter ending February 28, 2021, the Rule 144 aging process continued to mature for In- house, longer term financing. One hundred & Fifteen Million equity shares were individual grants by the parent company as an addendum to the original start-up agreement. The grants were created for a specific purpose — for Senior oversight financial management. operations managers and retained consultants — to participate voluntarily in the growth of the Payless Subsidiary and ultimately in subsequent client/subsidiaries. The Grant shares will be eligible for sale during May 2021.
Negotiations with long term straight debt non-dilutive lenders and Preferred Stock financiers started in earnest during the quarter and progressed to a point where Daniels’ senior management believes levered financing to take Payless to its first plateau — of 100 rental fleet trucks- is achievable and will start during the May 31, 2021 Quarter. Leveraged finance closings will occur in stages supported by insider sales of equity shares already counted in the outstanding share count of Daniels. The timing of equity sales will be to meet the current operating capacity of Payless. Board level discussions are taking place to expand the Payless operating facility to speed up the expansion. (Relocation to larger rental quarters may be necessary).
The combination of straight debt, Preferred Stock and timed insider equity capital sales/ infusions will reduce dependence on expensive private loans secured against trucks. Blended Public market-rates for financing, will allow Daniels / Payless to service a larger debt load and accelerate growth prospects. Our cost of capital should drop significantly from current levels.
Press Release Contact: Nicholas Viola
CEO
Email: onewallstreetn@aol.com
