Delivery Technology Solutions Issues CEO Update Letter to Shareholders
December 03 2010 - 7:00AM
Marketwired
Universal Delivery Solutions, the operating unit of Delivery
Technology Solutions Inc. (PINKSHEETS: DTSL), has issued an update
by CEO Ryan F. Coblin.
Shareholders,
It gives me great pride to update our loyal shareholders on the
remarkable strides our company has made over the past 12 months. As
we approach the beginning of 2011, I am pleased with the direction
of the company, the dedication of the staff and consultants, as
well as the loyalty of the old and new shareholders. Our company is
more poised than ever to achieve its short term and long term
objectives as we move into 2011. As we end 2010 and look to a
prosperous 2011, we must reflect back on the many accomplishments
we have made over the last 12 months.
Last year in the fourth quarter of 2009, we launched our first
major test market with SUBWAY® for delivery and catering in the
Washington, D.C. area. The data collected and the results from the
success in that test pilot were instrumental in our subsidiary
Company UDS receiving a National Vendor Agreement with SUBWAY in
the second quarter of 2010. Over the past few months, we have been
engaged with numerous territory agents and individual Franchisees
across the country who have endorsed our program and see the
tremendous opportunities that lie ahead. We have added a few
thousand locations to our various programs, and anticipate that by
the end of 2011 we will have added enough locations to have
achieved full nationwide coverage for our catering and delivery
platform. Our relationships are the culmination of years of hard
work, tremendous dedication and relationship building which has
resulted in our move into the revenue phase of our business
model.
In early 2010, UDS engaged in a three way national contract
between DAI (SUBWAY) and the largest digital theatre chain in the
country. The agreement has enabled us to get a footprint nationwide
and afforded us the opportunity to showcase our software and
management our platform in numerous multi-city, multi-venue events.
We successfully demonstrated our ability to serve thousands of
patrons in dozens of theatres nationwide simultaneously while
maintaining the best in breed that customer service has to offer.
Our partnerships remain strong and should provide revenue growth
for many years to come. We look forward to continuing to coordinate
and facilitate many large and small events in the coming years.
Another area of our business that continues to increase and help
build our data base is our strategic partnership program. Although
just initiated at the end of the 2nd quarter, it continues to grow
and prosper and we now feel it is poised for rapid growth going
forward. Hewlett-Packard, T-Mobile, and American Express are all
examples of companies that have already joined our program and are
enthusiastic about the relationships being established. By forming
strategic alliances with these fortune 500 companies, we are able
to bring our relationships together by cross marketing and branding
all of our services like a giant "social network." One of the
additional benefits to our company is that our strategic partners
now use our services for their large and complex catering events.
With these partnerships in place, we believe that we can build a
significant corporate/customer base that has the potential to add
significant value to our shareholders equity in the future. As we
continue to build a significant corporate/customer base, the data
base could add significant value to our company, thus creating
additional shareholders equity down the road.
As was previously reported, UDS coordinated and managed the
nationwide, simultaneous catering and delivery of food to over
10,000 employees at 700 Best Buy, Fry, and Micro Center locations
across 5 different time zones in an event funded by
Hewlett-Packard. This event not only showcased our complex order
delivery system and technology, but the successful management of
large events. According to an event coordinator at Hewlett-Packard,
the event was a tremendous success. With this large event behind us
we have now focused our sales and marketing efforts on more large
scale events as well as additional fortune 500 companies that
sponsor or hold similar events on this scale.
Another milestone and accomplishment in 2010 was the company's
successful upgrade in status to "current information" from the OTC
Markets in November. The diligent work by our staff, management,
accountants, and attorneys to compile and present all necessary
disclosure information to the public was paramount. It is our
intention to become fully reporting in the future and eventually
have our company's shares trade on a larger exchange. We believe
that in attaining reporting status, our company can benefit from
many new opportunities that are not available to us today. As CEO,
I regard this as one of our highest priorities for 2011.
From a financial perspective, the company has been positioning
itself as it looks to become profitable some time in 2011. As we
all are aware, since 2008 our economy has seen very challenging
times for both businesses and consumers. Many banks, lending
institutions and the like virtually shut down the way they lend to
emerging growth companies such as ours. With the challenges that
have been presented to us, my management team has combined a very
delicate balance of continuing to grow the company, fund the
startup of our revenue growth and clean up some of balance sheet
issues. It has required us to fund the company using a wide variety
of financial products that have enabled us to sustain the business,
and grow the company at the same time. With that in mind, now that
we are in full disclosure with OTC Markets we will update our
shareholders via our published disclosure and financial statement
that we are required to publish on a quarterly basis. It is however
necessary for us to share with each of our shareholders that we
have been aggressively funding the company this quarter, which will
position us to be much stronger going forward. As was previously
noted this funding has enabled us to solidify our balance sheet,
and set aside some necessary funds for the major revenue growth
that we have charted out in the future. As a result of some of
these funding products, there has been dilution to our share
structure. This dilution we believe is already reflected in our
current market capitalization. As 2010 comes to a close, it is our
intention for the next several years to no longer engage in any
capital funding that could result in dilution to our shareholders.
Our internal projections show that through top line revenue growth
the company potentially could become profitable as early as the
third quarter of 2011. Our projections forecast revenue of more
than 13 million dollars in 2011 and upwards of 40 million dollars
for 2012. It is very important to note that there are many factors
that come into play in attaining our revenue projections and our
staff is working very hard to make this happen.
I would like to finish by thanking each and every one of our
shareholders for all of their support, dedication and patience with
the development and growth of "OUR" company. The entire UDS team is
dedicated to reaching all of our goals. If anyone ever has a
question please feel free to contact our office at anytime. May all
of you have a very healthy and happy New Year and may all of your
wishes for the New Year come true.
Sincerely, Ryan F. Coblin CEO - Delivery Technology Solutions,
Inc.
About: Universal Delivery
Solutions, Inc. Universal Delivery Solutions, Inc.
(PINKSHEETS: DTSL), www.universaldelivery.com, is the leader in
providing comprehensive custom-developed catering/delivery
solutions to industries throughout North America. Universal
Delivery Solutions, Inc (UDS) is a wholly-owned operating
subsidiary of Delivery Technology Solutions Inc. The company offers
blended solutions through a seamless system that integrates
Customer Relationship Management (CRM) and Call Center IT services
utilizing a proprietary technology backbone to offer convenience,
consistent quality, flexibility, accountability and value for
consumers and companies.
Safe Harbor: The statements in the press
release that relate to the company's expectations with regard to
the future impact on the company's results from acquisitions or
actions in development are forward-looking statements, within the
meaning of the Private Securities Litigation Reform Act of 1995.
The statements in this document may also contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
Since this information may contain statements that involve risk and
uncertainties and are subject to change at any time, the company's
actual results may differ materially from expected results.
Contact: Delivery Technology Solutions, Inc. Mr. Ryan
Coblin CEO 561-674-9500
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