Global Diversified Industries, Inc.        OTCBB:  GDVI
 

OTCBB

GDVI

Current Price $ 0.05
Shares Outstanding 122.8 M
52 Wk Trading $0.031-0.339

Information Console

 

 

Contacts

Global Diversified Industries Inc.

1200 Airport Drive

Chowchilla, CA 93610

Tel: (559) 665 5800

Investor Relations Contact

Mr. Paul Knopick
Tel: (949) 707-5365
pknopick@eandecommunications.com


 

 


 

'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 $472,000.
  • 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 classrooms.
  • $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 modular manufacturing.
  • GDVI has the benefit of providing educational customers with products contracted under a "piggyback clause".
  • 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.

Overview

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 manufacturing facility.

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.


Profile

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 soliciting bids.

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 California Schools

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 weeks)
  • They cost significantly less (as low as $30,000 vs. $100,000)
  • They offer greater flexibility for use compared to conventional buildings
  • They are easier to finance
  • They provide financing incentives

photo    photo

 

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 classrooms.

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 Crisis

On November 5, 2002 a $13.2 billion School Facilities Improvements bond proposal (Proposition 47) was passed by California voters.

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 California.


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 operating structure.

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 in-house services:

  • Design, Engineering and Planning
  • Site Preparation
  • Manufacturing and Construction
  • Delivery, Installation, and Relocation
  • Ancillary Interior and Exterior Services
  • Customer Service and Support

Business Milestones

  • March 2003: Acquires MBS Construction with proprietary engineering and
    $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 $2.63 million.
  • January 2004: Completes the installation of a unique automated assembly process manufacturing facility in Central California.

 


Recent News and Press Releases

  Global Diversified Industries' Modular Division Secures $2.1 Million in New Orders for Immediate Delivery
Tue, Sep 21 - PR Newswire
  Global Diversified Industries, Inc. Finalizing New Investment Worth Over $2.0 Million in Market Value
Thu, Sep 16 - PR Newswire
  Global Diversified Industries, Inc. Subsidiary Hires Two Modular Industry Veteran Sales Professionals
Thu, Sep 9 - PrimeZone Media Network
  GLOBAL DIVERSIFIED INDUSTRIES INC Files SEC form 10KSB, Annual Report
Tue, Aug 17 - EDGAR Online
  Global Diversified Industries, Inc. Subsidiary Secures New Design to Increase Business For Use On Permanent Modular Projects
Mon, Jul 26 - PrimeZone Media Network
  Global Diversified Industries, Inc. Subsidiaries Hire 75 New Employees to Assist Sales Bookings Influx and Higher Production Flows
Thu, Jul 22 - PrimeZone Media Network
  Global Diversified Industries, Inc. Projects Revenue Increase of 100%
Mon, Jul 19 - PrimeZone Media Network
  Global Diversified Industries, Inc. Announces Subsidiary Wins Five New School Contracts Valued at Over $1.1 Million
Wed, Jun 9 - Market Wire
  Global Diversified Industries, Inc. Implementing Actions to Be Removed From Berlin-Bremen Stock Exchange
Fri, Jun 4 - Market Wire
  Global Diversified Industries, Inc. Positions Itself for $10 Million in Funding and Qualifies for $3 Million Federal Tax Credit
Tue, Jun 1 - PrimeZone Media Network

Management Team

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 and Chief
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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