American Mold Guard CL B Wrt (MM) (NASDAQ:AMGIZ)
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American Mold Guard, Inc. (NasdaqSC: AMGI, AMGIW,
AMGIZ), an industry leader in the field of mold prevention services,
today announced that it expects its net sales for the third quarter
ending September 30, 2006 to be below the target it provided during
its earnings conference call on July 25, 2006. On that call, the
company forecasted that third quarter net sales would be in the range
of $3.1 to $3.6 million or a 20 to 40 percent increase from the second
quarter of 2006. The company now believes that third quarter net sales
will be in the range of $2.1 to $2.3 million or down 11 to 19 percent
from the second quarter of 2006. For the nine months ended September
30, 2006, the company is forecasting approximately 80% net sales
growth versus the same period a year ago.
"During the quarter, builders delayed new housing starts due to
declining sales and excess inventory," said Tom Blakeley, chief
executive officer of American Mold Guard. "In California and Florida
where the company is established, the inventory correction was more
severe than what we originally anticipated. Although we are having
success securing new customers in these regions, in the near term it
is not enough to offset the effect of reduced new housing starts."
"Our Gulf restoration business has seen steady growth since last
year. As we entered the quarter we expected the pace of the Gulf
restoration to continue along this trend. However, during the quarter,
homeowners and businesses in the most devastated areas took a
wait-and-see-approach at the start of the hurricane season that has
slowed the rate of growth in our restoration business. We would expect
this business to pick up, post-hurricane season provided that the area
is not impacted by another major storm," said Mr. Blakeley.
"As a company, we remain focused on growing sales by offering
customers a product, service and warranty for mold prevention that is
unmatched in the market place. We have expanded our footprint with the
opening of five new service centers in the second quarter of this year
and with the new Midwest region announced in July. We are also
leveraging our business model by increasing our focus on the
multifamily business. These efforts are designed to increase the
customer base we service which ultimately should benefit the company
exponentially when the housing market strengthens," added Mr.
Blakeley.
"Achieving profitability continues to be a key focus of the
company. In the third quarter, we implemented several productivity
improvements aimed at margin expansion and we have put in place
proactive cost controls to optimize SG&A spending," concluded Mr.
Blakeley.
American Mold Guard will release its financial results for the
third quarter on October 19, 2006. At that time, the company will
provide more details on its business.
About American Mold Guard
American Mold Guard, Inc., founded in 2002, is an industry leader
in the field of mold prevention services. Its services are primarily
focused on the residential real estate construction industry in
California, Texas, Louisiana, Mississippi and Florida. Its customers
include many of the largest national and regional home builders.
Visit: www.americanmoldguard.com
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995 regarding, among other things, statements relating to goals,
plans and projections regarding the company's financial position,
results of operations, market position, product and service
development and market strategy. These statements may be identified by
the fact that they use words or phrases such as "anticipates,"
"believes," "estimates," "expects," "intends," "plans," "predicts,"
"projects," "targets," "will likely result," "will continue," "may,"
"could" and other words and terms of similar meaning in connection
with any discussion of future operating or financial performance. Such
forward-looking statements are based on current expectations and
involve inherent risks and uncertainties, including factors that could
delay, divert or change any of them, and could cause actual outcomes
and results to differ materially from current expectations. These
factors include, among other things, competitive product and service
development, future broad market acceptance of mold prevention
services, difficulties in raising additional capital in the future,
difficulties and delays in establishing the "Mold Guard" brand, the
impact of the absence of significant proprietary technology underlying
our services, a continued and long-term dependence on a limited number
of customers, changes to the inventory levels of the company's raw
materials suppliers, the impact of a continued absence of exclusive or
long-term commitments from the company's customers, changes in the
anticipated size or trends of the markets in which the company
competes, judicial decisions and governmental laws and regulations,
and changes in general economic conditions in the markets in which the
company may compete. For further details and a discussion of these and
other risks and uncertainties, see the company's periodic reports
including current reports on Form 8- K, quarterly reports on Form 10-Q
and the annual report on Form 10-K, furnished to and filed with the
Securities and Exchange Commission. The company undertakes no
obligation to publicly update any forward-looking statement, whether
as a result of new information, future events or otherwise.