Recaps 2019 Activities and Major Accomplishments, Provides Outline of New Vision for 2020
Houston, TX, Dec. 19, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Movement Industries Corporation (OTC PINK: MVNT) (the “Company”) is excited to provide an update as the Company nears the end of its first calendar year as a public entity. Mr. Linh Nguyen, CEO of the Company, stated: “From the very beginning, our focus has been on generating long-term shareholder value by creating a great company with predictable revenues that can weather significant fluctuations in the economy. As such, it has been a paramount concern of ours to create a solid foundation from which to build. Most of our efforts this past year have been spent doing the really hard work behind the scenes to lay this foundation.”
The Company would like to highlight several major accomplishments from 2019:
- The Company completed its reverse merger in March.
- The Company cleaned up existing legal issues and updated public information with OTC Markets.
- The Company cancelled over $600,000 in debt that was beyond the statute of limitations.
- The Company repurchased and retired 230 million shares of common stock, reducing the outstanding share count by 43%.
- The Company brought its state filings and transfer agent into compliance.
- The Company completed the initial financials, bringing the company to current reporting status.
- The Company completed its initial acquisitions of Hi-Alloy Valve and Velocity Manufacturing.
- The Company filed for a name change and symbol change which were approved by FINRA.
- The Company announced multiple letters of intent to acquire additional companies.
- The Company completed the acquisition of SGX Industrial..
The Company’s original plan was to roll up five specific companies into one. What the Company didn’t anticipate was the response that it received from other companies that wanted to join the Company’s team. Over the summer and early fall, members of the Company’s executive team evaluated over a dozen interested companies to see how they might fit into its overall plan. The executive team has decided to bring at least five of the companies that were evaluated into the group over the coming year, in addition to the five companies that were already identified when the Company first became public. The Company hopes to announce letters of intent for several of these new acquisition targets in the near future. The Company also decided to create two additional business units to address new opportunities that are expected to generate a significant portion of the Company’s 2020 revenues. The result is that the Company’s overall product and service offerings will be much broader in scope and serve a wider range of industries than was originally planned.
Because of these changes, the Company has more than doubled its internal revenue targets for the next five years. Acquisitions now represent approximately one-fourth of the target revenues with the rest of the revenues coming from organic growth and synergies created by bringing all the pieces together. Manufacturing is still the core competency of the business, and since its machining capabilities are agnostic to any particular industry, the Company is able to quickly move into new industries and capitalize on specific opportunities as they present themselves.
One of the biggest efforts involved in laying the Company’s foundation has been the establishment of internal processes and procedures for corporate governance and the financial disclosure requirements to become a public company. Over the last few months, the Company has upgraded its Enterprise Resource Planning (ERP) system and the Company is currently moving all the operational data for its initial acquisitions into the new system. Since most of the acquisitions are established companies with long histories, this conversion process is taking longer than the Company had initially thought. The effort has also affected the Company’s ability to report its financial statements on time. For example, Velocity Manufacturing has hundreds of work orders from just the past few years that must be converted to the new ERP system and each of them needs to be reviewed for GAAP compliance.
The Company will be sending its revised financials for September 31 to its certificated public accountants in the near future and the Company expects to be on time with its December 31 filing. Once the books of each of the companies that are still being converted are included in the Company’s filings, the historical numbers for these quarters will be updated to reflect the Company’s overall historical results. Now that the Company has implemented most of the procedural changes for its corporate governance and financial disclosure requirements, the Company expects future acquisitions to be integrated into the Company much easier than in the past, so any new acquisition should not affect the Company’s ability to report its financials on time.
Details of the Company’s new vision will be released on its new corporate website that is expected to launch early next year. Here is a brief overview of the main business units in the Company’s new business plan:
– artificial lift, site construction, site operation, site maintenance, asset management, predictive monitoring to prevent unexpected downtime, flow control and other products used at the well site.
– turnaround services, turnaround equipment rental, predictive asset monitoring to prevent unexpected downtime, tower internals, flow control and other products used in refineries and petrochemical plants.
Flow Control Solutions
– API 6A & 6D valves made in the United States, patented pumps for chemical injection and artificial lift, electric, pneumatic and hydraulic valve actuation and product support for our Upstream and Downstream Solutions.
– IoT platform, intellectual property licensing, SaaS monitoring solutions and monitoring support for our Upstream, Downstream and Flow Control Solutions.
– Dryers, irrigation systems, greenhouse construction and equipment and industrial-grade, continuous hemp extraction units with capacities from 0.5-ton to 20-tons per day.
– Contract manufacturing, machining and job fabrication utilizing state of the art, multi-axis CNC machines and equipment, water jet cutting, welding and fabrication. Manufacturing Solutions is the Company’s core competency and should allow us to manufacture multiple products for many industries.
In closing, Mr. Nguyen had this to say, “It has been a busy year for us at Movement Industries as we began this journey as a public company. There have been many hurdles along the way, but we have laid a solid foundation and we are very optimistic about the future. We believe we are now ready to begin reaping the fruits of our labor and we expect the coming year to be a breakout year for us in terms of revenue growth. I would like to thank all our shareholders, investors, employees, customers and partners for the support they have shown us over the past nine months. I and the entire team are dedicated to ensuring that your patience with us is worthwhile. I would like to wish you all a very happy holiday season and we look forward to an exciting and prosperous 2020.”