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Explorations
Group, Inc. (OTCBB: EXGI) |
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Dear Reader,
The old axiom goes, "Want to get rich? Own a parking garage
in San Francisco." Of course that could be a parking
lot, or a garage, or a giant concrete structure in New York, Miami,
Chicago, or Houston. As a matter of fact, as you read on,
you'll see it doesn't only apply to large cities, but also to the
hospitals, shopping centers, schools, sports complexes, airports
and public parking facilities that operate in any town USA.
Looking in from the outside, parking may appear to be a simple
business: a car parks in a space and the owner pays for that privilege.
But parking is in fact, a complex business that requires specialized
knowledge and a wide-range of expertise. Nearly 90% of North
America's commercial parking spaces are managed by professional
parking firms.
Explorations Group, Inc. (OTCBB: EXGI) today's featured
company, owns and operates parking and storage facilities. Its much
larger, public company competitors (Standard
Parking Corp. - Nasdaq: STAN and Central
Parking Corp. - NYSE: CPC) trade at 12 times and 26 times
earnings respectively (forward P/E). Applying these earnings
multiples to EXGI places its stock price much higher than its current
trading range based on the company's projected earnings for FYE
2005.
EXGI acquired Parking Pro, Inc., just a few months ago and is already
profitable. The company currently has four facilities under
contract and is now solely focused on growing Parking Pro into other
regions of the country. Management has identified 19 acquisition
targets and expects to complete the first nine of those by April
2005.
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About
EXGI and Parking Pro, Inc. |
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Parking Pro, ParkPro and its affiliates are consultants and operators
of four public parking facilities in the New York Metropolitan
area under leases and management contracts covering parking facilities
owned by non-affiliated property owners. Management contracts
generally provide for a fixed fee plus fees for ancillary services.
Leases generally range anywhere from three to 20 years. Parking
Pro intends to increase revenues and improve profitability with
existing leases and management contracts and expand its business
by acquiring additional parking facility operations and management
contracts.
Parking Pro has
achieved profitability during the past 6 months (unaudited)
Revenues are up
104% over the last quarter to $641,000 from $314,000
Direct Parking
Services increased 75%
Revenue from management
contracts and license fees, posted quarter to quarter gains in
excess of 100%
EXGI plans to have
approximately 40 locations under management by the end of 2005
 
Excerpt from the 11/10/04 Letter to Shareholders:
Parking Pro management has identified 19 acquisition candidates
consisting of nine parking facilities controlled by a single, independent
operator, nine parking facilities controlled by former shareholders
of Parking Pro, and a vacant warehouse controlled by an unaffiliated
entity. Parking Pro management has reviewed financial information
on the nine facilities controlled by the independent operator and
believes the acquisition will contribute $2.4 million in gross
revenues equating to an additional $500,000 of EBITDA on an annualized
basis. Currently, Parking Pro management is actively seeking
firm commitments on acquisition funding and anticipates closing
the acquisition during 2004. Parking Pro management expects
to complete the acquisition of the nine affiliated parking facilities
by April 2005 and is in final negotiations in regards to the vacant
warehouse. No cash funding is required to acquire the
nine affiliated parking facilities. Cash required to obtain the
warehouse leasehold interest will come from debt and/or equity issuances.
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The Parking Industry |
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The International Parking Institute, a trade organization of parking
professionals, estimates that as of December 2002 (the latest
year for which numbers are available) there were approximately
40,000 parking facilities in the United States generating
over $29.0 billion in gross customer collections. Industry
participants, the vast majority of which are privately held companies,
consist of relatively few nationwide companies and hundreds of
small regional or local operators, including a substantial number
of companies that provide parking as an ancillary service in connection
with property management or ownership.
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Over the years, the parking industry has undergone
a period of rapid consolidation
and today, remains highly fragmented with only a few
nationwide operators.
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EXGI Management |
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"The New York market in particular is comprised of only a handful
of large players and is mostly dominated by smaller, niche operators,
most of whom lack the resources to effectively compete for new contracts.
While we (Parking Pro) currently operate only
a small number of facilities, our company is growing rapidly in a
profitable manner and most importantly we've established a strong
brand and credible reputation among our customers, partners and industry
peers.
"It is our intent to further integrate previously acquired properties
and to look for new opportunities to extend our reach both in and
outside of the New York metropolitan market and achieve greater
economies of scale. It is our goal to have roughly 40 locations
under management in addition to revenue generating relationships
with third-party vendors and associates by the end of 05. We believe
we have assembled an experienced management team capable of increasing
shareholder value over the long-term."
Eric
Brown, chairman, CEO and President
  
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EXGI and Parking Pro Services |
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EXGI does a thorough study
of each property
and provides an in-depth
business plan outlining
specific steps to maximize
service and improve net revenues.
The plan includes a competitive
rate survey and customer mix profile.
The plan includes a review
of signage, layout, equipment, lighting,
security audit procedures,
and regional - local marketing programs.
Safe, Courteous,
Professional and Reliable Services.
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Consulting services
Management services
Valet Parking
Self parking
Online payment services
Hospital Parking
Hotel Parking
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Clients are provided with
a step-by-step roadmap for improving profits.
1508 Lexington Avenue, New York, NY 10128 -
300 Schermerhorn Street, Brooklyn, NY 11201
359 Schermerhorn Street, Brooklyn, NY 11201
- 1625 Surf Avenue, Brooklyn, NY 11223
CAREFUL COURTEOUS PROFESSIONAL
CITYWIDE
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Recent News From EXGI |
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Press Release Source: Explorations Group Inc.
Thursday September 30, 6:15 am ET
Explorations
Subsidiary in Due-Diligence Period
to Acquire Nine
more Parking Facilities
NEW YORK, Sept. 30 /PRNewswire-FirstCall/ -- Explorations Group
Inc. (OTC Bulletin Board: EXGI - News), a publicly held Delaware
corporation, through its wholly owned subsidiary, Parking Pro, Inc.,
an emerging operator of public parking facilities in the New York
Metropolitan area, today announced that on September 29, 2004 it
signed a Letter of Intent to acquire 9 parking facilities from an
unaffiliated operator. Results of preliminary negotiations and evaluation
of unaudited financial operating results culminated in the signing
of the Letter of Intent.
To read the complete release, the link is Here.
Press Release Source: Explorations Group Inc.
Wednesday September 29, 6:15 am ET
Explorations
Subsidiary to Acquire 2 More Parking Facilities
New York, Sept. 29 /PRNewswire-FirstCall/ -- Explorations Group
Inc. (OTC Bulletin Board: EXGI - News), a publicly held Delaware
corporation, through its wholly owned subsidiary, Parking Pro, Inc.,
an emerging operator of public parking facilities in the New York
Metropolitan area, today announced that it has agreed in principal
to acquire File Management Corp. and Peaceful Management Corp.,
both NY corporations. File Management Corp. and Peaceful Management
Corp. are affiliated companies, being owned by the former shareholders
of Parking Pro, Inc.
To read the complete release, the link is Here.
Press Release Source: Explorations Group Inc.
September 21, 2004 4:16:00 PM ET
Explorations
Group Subsidiary Appoints Chief Financial Officer
NEW YORK, Sept. 21 /PRNewswire-FirstCall/ -- Explorations Group
Inc. (OTC Bulletin Board: EXGI), a publicly held Delaware corporation,
through its wholly owned subsidiary, Parking Pro Inc., a newly formed
and emerging operator of public parking facilities in the New York
Metropolitan area, today announced that Christopher J. Brnic, CPA
has been named chief financial officer of Parking Pro, effective
immediately.
"We are pleased to have Chris join Parking Pro," stated Eric Brown,
chairman and chief executive officer. "His extensive financial management
and strategic planning experience will benefit Parking Pro as we
continue to grow and further enhance our emergence into the public
parking facility industry. Chris's appointment will also enable
Explorations to continue to provide shareholders with a high level
of integrity in its financial reporting." Brnic joins Parking
Pro with extensive financial management, strategic planning and
SEC experience, most recently holding the position of Director of
Financial Operations at TheStreet.com Inc.
To read the complete release, the link is Here.
Press Release Source: Explorations Group Inc.
Wednesday September 15, 6:01 am ET
Co-Founder
of Parking Pro Inc., Eric Brown, Discusses Positive Outlook for
Explorations Group Inc. in Interview
with Baltimore's
Business Radio 1190
NEW YORK, Sept. 15 /PRNewswire-FirstCall/ -- Explorations Group
Inc. (OTC Bulletin Board: EXGI - News), through its wholly owned
subsidiary Parking Pro, operators of public parking facilities in
the New York Metropolitan area under leases and management contracts
covering parking facilities, announced today that, Eric Brown, chairman,
CEO and President of Explorations, will be interviewed by Aime Glassko,
program coordinator of WBIS 1190 on Wednesday, Sept. 15, at 9:21
A.M. EDT with an immediate re-play at 10:21 A.M. EDT. Business Radio
1190, http://www.wbis1190.com.
The interview can be heard online at http://www.wbis1190.com
and a link to the profile can be found at http://www.tristatecapital.com/exgi.html.
The purpose of the interview is to familiarize investors with Explorations
and give insight into the background, performance, services provided
and future potential of the company. The in-depth interview conducted
by Glassko is geared toward sophisticated investors who require
first-hand perspective to assist them in making informed investment
decisions. The interview can be retrieved at a later date if not
heard live at http://www.explorationsgroup.com.
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Financial Highlights For EXGI |
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EXGI Industry:
Commercial Services
Shares Outstanding:
6,426,567
Float: 873,000
Recent Price: $0.26
(11/29/04)
52-Week High (01/29/04)
$1.01
52-Week Low (11/20/03)
$0.20
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As reported in the company's Form 8-K/A
filed on August 27, 2004, revenues are up 4% quarter to quarter
to $327,000 from $314,000, an increase of approximately 4% over
the $314,000 reported for the previous March 31,2004 quarter.
Fueling this growth were increases in revenues related to direct
parking services, which increased 75% and revenue from management
contracts and license fees, which posted quarter to quarter gains
in excess of 100%. Expenses increased from $222,200 to $434,900,
though as a percentage of revenues, decreased by approximately 6%.
Un-audited net income for the six-months ended June 30, 2004 was
$206,100 as compared to un-audited net income of $91,800 for the
three-months ended March 31, 2004, an increase of almost 125% quarter
to quarter.

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EXGI PRICE
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EXGI
vs.
SPX Sector Comparative Returns |
To view the latest from EXGI on the SEC Web site,
the link is Here
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To Contact EXGI & Parking Pro, Inc. |
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Headquarters
1369 Madison Avenue, Suite 432
New York, NY 10128
Main: 212.722.4424 - Fax: 212.722.4218
Email: investorinfo@parkproinc.com
Website: http://www.parkproinc.com
***
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