Global Diversified Industries Inc.
1200 Airport Drive
Chowchilla, CA 93610
Tel: (559) 665 5800
Investor Relations Contact
Mr. Paul Knopick
Tel: (949) 707-5365
'Since 1998, California legislation has
required that at least 20% of all new classrooms constructed with
State funds be portable structures.'
CHART SIGNALS BUY GDVI
Global Diversified Industries, Inc. Modular Divisions Expecting to
Greatly Increase New Business From California Bond Passages Worth $9
Billion; Total Bond Measures Valued Over $21 Billion.
Currently, the Company has structured its strategic marketing and
sales plan for its California modular subsidiaries to achieve $60
million in new sales booking over the next 36 months.
PROPOSITION 47 STAGGERING FIGURES POINTING TO ENORMOUS DEMAND:-
Prop 47, otherwise know as the Kindergarten-University Public
Education Facilities Bond Act of 2002, provided $13 billion in 2003
to be followed by a $12.2 companion measure in 2004.
This is more than the combined sum of every California school-bond
measure since Jerry Brown was Governor in 1982! Bottom Line: huge
demand for GDVI modular technology will fuel massive growth in
revenues in the next few years!
GDVI Investor Highlights
- Reported Six Month Revenues of $2.63 million.
- Reported Six Month Gross profit of $964,254.
- Commenced delivery of a $1 million Contract to
California’s fifth largest school district.
- GDVI is currently under contract to provide portable
classrooms involving various designs to school districts
throughout the State of California.
- Completed the installation of a unique automated
assembly process on 16 acres in central California with a
100,000 square foot state-of-the-art manufacturing
facility. The new facility will reduce costs significantly
while noticeably improving the bottom line.
- Announced repeat order business (third order) with a
High school district in San Bernardino County, totaling
- The State Department of Education estimates that
California will need more than 2,500 classrooms each year
for the next four years, which equates to more than 10,000
- $22.6 Billion in state and local bonds have been
passed by California voters for school modernization which
includes portable classrooms and modular classroom
construction and renovations. An additional bond for $12.1
Billion is expected to be passed by voters in March 2004.
- Positioned to become one of the dominant leaders in
- GDVI has the benefit of providing educational
customers with products contracted under a "piggyback
- GDVI intends to expand its product line to serve the
commercial/business sector. This sector consists of
retail, industrial and institutional (including
educational institutions that reside on private property).
- Strong management team with extensive and successful
background in modular manufacturing.
Global Diversified Industries operates in the modular building
construction industry, and strategically targets the California
Education Sector. GDVI is strategically located in Central
California on 16 acres with a 100,000 square foot state-of-the-art
Throughout 2003 the company focused on building it’s
infrastructure through acquisitions, development of a
state-of-the-art manufacturing facility, and by securing the
requisite financing facilities to fuel business growth.
Through the combination of its new facility, the increased demand
for portable buildings and the State Of California's bond approvals,
GDVI has become well positioned to become one of the dominant
leaders in modular manufacturing on the west coast.
GDVI should benefit greatly from the $12.1 Billion school
improvement bond that is expected to be passed by California voters
next month (March). This presents, in our opinion an opportunity for
early investors of GDVI to also benefit before the mainstream
investor realizes who the benefactors are and subsequently invests
in those companies.
Global Diversified has taken numerous strategic development steps
throughout 2003, including generating strong revenues as well as
profits and is now poised for explosive growth in 2004. The company
is led by a strong management team with previous success in building
companies into $50 million per annum businesses.
In the past year GDVI has exceeded its own sales revenue
projections, renewed its piggyback contract, received state
approvals on engineered product designs, started a new credit
facility and opened its new 100,000 square foot manufacturing
facility. The company will continue to seek new acquisition
candidates through its aggressive growth plan.
GDVI is a holding company that currently operates three
wholly owned subsidiaries, Lutrex Enterprises, Inc., an
entity which holds equipment and inventory for the
registrant, MBS Construction Inc., a modular contractor
specializing in modular construction site work and
renovation and Global Modular, Inc., a sales, marketing and
manufacturing of modular type structures.
Its principal customer base is currently educational (public and
private schools, universities, etc.), child-care and municipality
sectors. Its product lines consist of a variety of portable
classroom designs, including both single-story and two- story floor
plans. Global Modular's portable classroom structures are engineered
and constructed in accordance with pre-approved building plans,
commonly referred to as "P.C.'s" or "pre-checked" plans, that
conform to structural and seismic safety specifications administered
by the California Department of State Architects (DSA).
Global Modular also enjoys the benefit of providing educational
customers with products contracted under a "piggyback clause". The
State of California allows school districts to canvass proposals
from modular classroom vendors under a bidding process where the
successful bidder can provide other public school districts and
municipalities portable classrooms under a "piggyback contract"
issued by the originating school district. This process saves school
districts valuable time and resources from the necessity of
A modular vendor who possesses a "piggyback contract" containing
competitive pricing and a variety of design options may have access
to future business for up to five years, depending on the term of
the piggyback contract.
The Strategic Focus on
Since 1998, California legislation has required that at
least 20% of all new classrooms constructed with State funds
be portable structures.
There are five compelling reasons for this trend:
- Modular classrooms are FASTER to construct (as quickly as 2
- They cost significantly less (as low as $30,000 vs. $100,000)
- They offer greater flexibility for use compared to
- They are easier to finance
- They provide financing incentives
To cope with population growth, the State Department of Education
estimates that California will need more than 2,500 classrooms each
year for the next four years, which equates to more than 10,000
Due to the current and projected budget cuts throughout the
California Education Sector, public and private schools are expected
to turn to portable/modular construction to fulfill their additional
classroom requirements over the next four years.
The California Schools Budget
On November 5, 2002 a $13.2 billion School Facilities
Improvements bond proposal (Proposition 47) was passed by
This bond measure passage does not include an approximate $9.4
billion worth of local bond measures passed by various school
districts throughout the state.
A second bond measure worth $12.1 billion will go before the
voters on the March 2004 ballot, which is expected to pass.
These bond measures are about three times higher than the record
$9.2 billion bond California voters approved in 1998. The revenue
generated from these bond measures will be used for school
modernization programs, which include requirements for relocatable
classrooms and modular classroom construction and renovations.
Money from the bonds will help overcrowded public and private
schools; design upgrades and expand building space at community
colleges and other institutions of higher learning throughout
GDVI Business Infrastructure
Among Global Modular's asset base is its integrated,
state-of-the- art, automated manufacturing process which
includes equipment, raw material and marketing collateral
that are specifically designed for the high capacity
fabrication of modular structures.
GDVI employs a workforce of 60 employees and is looking to add to
its workforce as demand increases.
Operates out of a sixteen acre site with a 100,000 square foot
Wholly owned subsidiary (Lutrex Enterprises) owns the equipment
and assets involved in the manufacturing process
Wholly owned subsidiary (Global Modular Inc.) markets, designs
and manufactures the buildings
Wholly owned subsidiary (MBS Corporation) handles installation
and building renovation.
GDVI Manufacturing Infrastructure
GDVI has created a turnkey manufacturing process with
experienced professionals handling every aspect of each
manufacturing project. Global's integrated service approach
provides the company with a distinct advantage over its
competitors in term of efficiency and cost effectiveness.
Via 3 wholly owned subsidiaries, GDVI delivers the following
- Design, Engineering and Planning
- Site Preparation
- Manufacturing and Construction
- Delivery, Installation, and Relocation
- Ancillary Interior and Exterior Services
- Customer Service and Support
- March 2003: Acquires MBS Construction with proprietary
$500,000 in plant and materials.
- May 2003: Begins construction of new portable
classrooms in new 100,000 sq. ft. manufacturing facility.
- October 2003: Commenced delivery of a $1 million
Contract to California’s fifth largest school district.
- October 2003: Announced repeat order business (third
order) with a High school district in San Bernardino
County, totaling $472,000.
- December 2003: Secures new Credit Financing Facility
of $2.5 million.
- December 2003: Reports Record Six Month Revenues of
- January 2004: Completes the installation of a unique
automated assembly process manufacturing facility in
Recent News and Press Releases
Philip Hamilton, CEO and President
Mr. Hamilton has an extensive and very successful background in
modular manufacturing. From 1996 to Feb 2000 he served as Chairman
and CEO of Pacesetter Industries Inc. He built this company from
inception into one of California’s largest manufacturers, producing
and installing thousands of schools and commercial buildings. Under
his leadership, Pacesetter Industries moved into a 5,500,000 sq. ft.
facility in Atwater, California with branch sales offices throughout
the state. The company employed a staff of over 650 employees and
had annual sales of $50,000,000.
Adam De Bard, Vice President
Mr. De Bard has over 6 years of experience in the manufacturing
and business sectors. From 1997 to 2000 he served as Vice President
Information Officer of Pacesetter Industries.
Ronald Kilpatrick, Director of Finance
Mr. Kilpatrick has 36 years experience in both domestic and
international development and management of major corporations. He
is a Managing Partner of Pacific Rim Capital LLC which provides
venture capital to projects in the Pacific Rim.
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