AVT Posts Financials Through June 2014

Sept. 24, 2014

CORONA, Calif., Sept. 24, 2014 /PRNewswire/ -- AVT, Inc. (OTC Markets: AVTC) (www.autoretail.com), a leader in automated retailing systems and custom vending machines, announced today that they have filed financial statements on the OTC Markets site. These unaudited reports provide an update on business and detail for company performance through June 30, 2014.  

In a statement to shareholders, company founder and chairman Shannon Illingworth expressed his thoughts. "Today we filed financial statements on the OTC Markets site, which are unaudited, and below I have provided an update on our business which is reflected in the financial statements. These statements provide detail for our performance through June 30, 2014.

"Before I do that let me address an on-going issue of which you are all well aware; the completion of our audited financial statements for the years 2012 and 2013, and their filing with the SEC. I have shared with many of you the timelines that were provided to me by our auditors and by the outside firm that we hired to assist in their preparation and audit, and have watched each of those deadlines come and go without the promised result. Those of you who have known me for some time will agree that I am demanding but fair, hopeful but realistic. You will also know me as someone who is not patient when it comes to pursuing the opportunity and the promise of AVTC.

"As the last months have unfolded, I have gone through a range of emotions that I have shared with many of you, from frustration to anger, disappointment to disbelief, that a process that objectively should be simple, has become so complex, time consuming and horribly delayed. Most of all, for those of you who have invested your money into AVTC this could create a 'crisis of confidence' in my leadership of your company. Your continued and unwavering support is appreciated and has not gone unnoticed.  I also realized that the best thing I could do would be to continue to focus on the changing landscape in our industry, and to find the opportunities within those changes. As I trust you will see, we have reason to be as excited about the business today, as ever in our history.

"During one of my conversations with David Wells, the CEO of StoryCorp Consulting, with whom we contracted to complete the audits with our outside auditors, he offered to assist in addressing our shareholders to provide a perspective on the situation, and confidence that full financial statements will soon be completed. While appreciative of his offer, I declined, knowing that I am responsible for AVTC and I will remain so even during this frustrating situation.

"Our company has experienced tremendous growth within a short time frame. While this is wonderful, it has also presented us with a new set of challenges, including bringing on the proper staff and hiring the correct external teams to assist us in our operations. We did not meet this challenge in a timely manner.

"Turning to our current business, there are several points that I would like to highlight:

  • Revenues for the 6 months ending June 30, 2014 are nearly identical to that of same period 2013.
  • Direct costs associated with those sales have dropped by approximately $250,000.
  • Gross margins have increased to 53%. 
  • Operating costs have dropped dramatically, from 67% of revenues to 44% of revenues, allowing us to post a profit for the period.
  • We have implemented several cost reduction and efficiency projects, which led to the successful reduction of overhead.
  • Interest has been reduced by approximately $350,000. Even though some of this is not paid in cash it is an important cost reduction.

"Some things to look for during Q3:

  • Ramping up production of Opticwash Pro systems, with 1,000 units on purchase order.
  • As reported in our 8-K, a new contract with a major fitness company to outfit locations nationwide with our healthy food and beverage systems.
  • Also reported in our 8-K, the development of an exciting new system for a major manufacturer of a popular children's computer learning tablet, scheduled for placements within national retail chains.
  • Significant expansion of Marley Coffee Automated Cafe locations.
  • BurritoBox franchising locations, leading to ramped up production.
  • Reaffirmation of our patent on certain wireless capabilities of vending machines, which we will begin licensing – creating a new and ongoing revenue stream.

"In conclusion, there will always be bumps in the road during times of growth, and we will adjust as necessary and move on, with our eyes firmly focused on the future growth of AVT.

"Again, I thank all of our valued shareholders for their support, patience and understanding. I can speak on behalf of the entire company when I say that our future looks bright and we look forward to the opportunities ahead."


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