Custom Vending Machines

An article in NPR titled, “Entrepreneurs Buzzing Over Medical Marijuana Florida,” reported that Twenty-two states and the District of Columbia now have laws allowing for some form of medical marijuana. “Florida appears poised to join the club. Polls show that voters there are likely to approve a November ballot measure legalizing marijuana for medical use.”

If Florida approves it, it will be the first state in the Southeast to do so. And with nearly 20 million residents, it will be the biggest market outside of California.

The Statesman Journal reports that there are now enough signatures to get a legalization measure on Oregon’s ballot this November. If passed, which seems probable, the state would become the third to have legalized cannabis.

CBS News reported that Colorado’s governor expects marijuana sales to reach $1 billion in his state by the end of the fiscal year later this month.

And according to the New York Times, more than half the states, including some in the conservative South, are considering decriminalizing the drug or legalizing it for medical or recreational use.

Clearly, this market is growing dynamically. AVT’s partner is one of the leading companies in the cannabis industry, and as more states pass legalization measures, the greater the number of opportunities exist for their products, which creates more manufacturing orders for AVT.

As this industry continues to grow – in ways not seen since the dot-com explosion – AVT is well positioned to take advantage of this tidal wave of momentum.

 

For more information, visit: www.autoretail.com

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As reported by Vending Times, Television sets no longer have dials on them,” said Dr. Michael L. Kasavana, Michigan State University (E. Lansing, MI). “And vending machines no longer require you to establish credit before making a selection.”

Kasavana, who is the National Automatic Merchandising Association endowed professor of hospitality business at MSU’s Eli Broad College of Business, moderated a panel session on “Enhancing Technology Performance” at the 2014 NAMA OneShow.

Dr. Kasavana, who became the NAMA endowed professor in 1999, recalled that he had coined the term “v-commerce” to describe the convergence of data processing and data communications on the emerging generation of vending equipment at the turn of the millennium. Today, he said, it’s time to replace that summary with the term “v-engineering” to describe the emergence of advanced self-service technology. The industry continues to change rapidly, he noted, affected by a profusion of alternate payment systems, digital media, touchscreens and network applications. Especially noteworthy has been the arrival of enhanced consumer interfaces that, among many benefits, can help in product marketing.

New-generation vending machines with touchscreen customer interfaces have some similarity to websites and, like them, will benefit from user-friendly layout. “The design of the display does affect sales,” the speaker emphasized. “Operators need to increase same-store sales, and part of doing that is converting those ‘touches’ into purchases.”

Effective design of the screen display can make it easier for patrons to find a desired product and the information about it that they want, he said. It also can encourage customers to take advantage of options like multiple purchases in a single transaction, or promotional incentives, to increase the size of the transaction. Interactive screens allow the development of a wide variety of customer incentives, giving operators access to merchandising tools that previously were confined to manual retail outlets.

Enabling consumers to use their smartphones and tablets to make payments also offers operators the opportunity to benefit from other capabilities of consumers’ wireless smart devices. Not only can contemporary mobile payment systems offer the convenience of use with debit and stored-value cards, but also the promotional power of loyalty and reward programs, “social vending” (gifting), and more.

For more information on this subject, visit: www.autoretail.com

 

Television sets no longer have dials on them,” said Dr. Michael L. Kasavana, Michigan State University (E. Lansing, MI). “And vending machines no longer require you to establish credit before making a selection.” Kasavana, who is the National Automatic Merchandising Association endowed professor of hospitality business at MSU’s Eli Broad College of Business, moderated a panel session on “Enhancing Technology Performance” at the 2014 NAMA OneShow. – See more at: http://www.vendingtimes.com/ME2/dirmod.asp?sid=EB79A487112B48A296B38C81345C8C7F&nm=Vending+Features&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=666B87101B13438EBF13ADB1611EC6CC#sthash.JEiA8h0E.dpuf

Vending MarketWatch, one of the industry’s leading trade publications, recently wrote about AVT’s new Android powered systems.

“AVT’s Android-powered custom vending machines can display ads and accept credit or debit cards and mobile wallet payments. Users can also redeem coupon codes and promotional offers,” the publication wrote.

“This system allows AVT to incorporate their patented technology, which provides remote wireless control of multiple vending machines. This industry-leading backend management system gives owners and operators a comprehensive set of customizable real-time reports on sales, usage patterns and even low inventory alerts.”

To read the article, visit: http://www.vendingmarketwatch.com/news/11269140/avt-creates-android-powered-custom-vending-machines

 

The San Francisco Chronicle recently wrote about the best new vending machines — and do our delight and surprise, almost all of which are designed and built by AVT.

The Chronicle wrote about some of the new custom vending machines that are offering fresh, exciting and innovative offerings; which have stimulated renewed interest in the $40 billion vending market.

The article stated, “The latest offerings include baked goods from Sprinkles Cupcakes, which operates three cupcake ATMs, and salads sold from an automated kiosk run by Farmer’s Fridge, a small company in Chicago. There’s also caviar from an ‘automated boutique’ in Beverly Hills and Mexican food offerings from a Burrito Box in Santa Monica.”

To read the article, visit: http://www.sfgate.com/business/article/From-burritos-to-smoothies-new-vending-machines-5236763.php

 

AVT released an internal case study regarding the financial potential of their company-owned Marley Coffee Automated Stores, and the division’s impact on total company revenues.

The systems allow consumers to obtain a freshly ground and brewed cup of the highly prized Marley Jamaican Blue Mountain Coffee, and are being built and owned by AVT for placement in high-traffic locations throughout the nation.

The report bases its primary assumptions on the following:

  1. Each Marley Coffee Automated Store will generate an average of $2000 revenue per month (range of $1500-$2500 per unit is expected). Assumption (1) is based on AVT’s years of experience in both vending manufacturing and owning one of the most well regarded vending routes in the nation. This combined experience with similar name brands and products (beverage and coffee dispensing) allows AVT management to conclude that the $2000 per month figure is both realistic and attainable.

 

  1. AVT plans on placing 1,000 company-owned units during 2013. These units will be built continuously throughout the year, and installed on a monthly basis. Revenues will ramp up in a linear manner, with a year-end division revenue rate of $2 million per month.

 

  1. Forecast for year-end 2013 is that the Marley Coffee systems will add $12 million in new revenues. Forecast for year-end 2014 is that the Marley Coffee systems will add $24 million in revenues. New units will continue to be added as deemed appropriate for 2015 and beyond.

 

  1. Costs to build, deliver and market the full run of 1,000 systems is estimated at $5 million.

 

  1. Projected company revenues are forecast to be $50-$60 million by year-end 2014. AVT management believes that as the company reaches a critical mass, growth within the foreseeable future will continue at a similar pace.

 

  1. Total company revenues account for the following:
    1. Existing and projected orders from current customers.
    2. A conservative expectation to receive the same amount of new business that “walks in the door” as in recent years.
    3. Revenues from the new Marley Coffee division.
    4. Revenues from new licensing and financing divisions

 

According to financial analyst Francis Gaskins, Editor-in-Chief of IPOdesktop.com and frequent contributor to Bloomberg Television and CNBC, AVT is currently under valued and should be trading around $10 based on the above. Additionally, if the company can meet their stated goals, the company’s stock should be in the $15-$20 range.

“AVT’s Top line revenue has grown on average 45% per year for the past five years, and continues to increase on a quarterly basis as of the nine months ended September 2012,” Gaskins stated. “The company continues to generate solid quarterly profits, and based on AVT’s industry leadership role and backlog, IPOdesktop believes AVTC is undervalued at the current price.”

For more information on AVT, please call 800-240-5175 or visit the website at www.autoretail.com.

 

 

About AVT, Inc:

AVT, Inc. is a leading developer of automated and self-service retailing systems. AVT is able to work with any size company to design a custom automated retailing solution that drives traffic, increases sales, improves security, and lowers overhead. With an in-house design team, software developers, mechanical engineers and on-site manufacturing, AVT can take projects from concept to completion with speed, economy and ingenuity.

AVT’s stock is traded through the OTC Markets, Ticker Symbol: AVTC

 

 

 

Disclaimer

The financial guidance above was not prepared with a view toward complying with the guidelines established by the American Institute of Certified Public Accountants with respect to prospective financial information, but, in the view of our management, was prepared on a reasonable basis, reflects the best currently available estimates and judgments, and presents, to the best of management’s knowledge and belief, the assumptions on which we base our financial guidance.

However, this information is not fact and should not be relied upon as being necessarily indicative of future results, and we undertake no obligation to release publicly the results of any future revisions we may make to this financial information to reflect events or circumstances after the this press release.

Neither our independent auditors nor any other independent accountants have compiled, examined or performed any procedures with respect to the prospective financial information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and they assume no responsibility for, and disclaim any association with, the prospective financial guidance information.

 

Safe Harbor Statement

The following Safe Harbor Statement applies to all our press releases, statements and blogs:

“This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company’s financial position and business strategy. The words or phrases “believe,” “think”, “should” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company’s expectations and estimates.

AVT, Inc. (Ticker: AVTC) (www.autoretail.com) updated its financial guidance for the periods through 2014. The move came after the recent new orders from large customers exceeded expectations.  The company’s planned expansion into new markets, products and services is moving ahead of schedule.

As a leader in providing customized automated solutions to retailers, businesses, brand owners and entrepreneurs, AVT is poised to significantly increase revenues in the next 24 months.

RECURRENT REVENUE

AVT is targeting a new market niche, by both building and operating a significant number of the new automated Marley Coffee Stores. These innovative systems provide customers with the world’s finest blends and a coffee-shop experience, but without the wait and at about half the cost. The company plans on deploying 1000 of these units by the end of 2013.

NEW DIVISIONS

AVT has also recently created a new division, which will be marketing and licensing AVT’s patented technologies. Revenues from this division are expected to begin in 1st quarter 2013.

AVT is also creating a leasing and finance division that will enable customers to start new businesses or expand existing automated retailing operations with ease and simplicity. Revenues from this division are expected to make a notable contribution to the company’s bottom line.

Accordingly, company management adjusted AVT’s long-term financial guidance upward.

FORECAST

The revised financial forecast shows over $12 million in increased revenues for year-end 2013, from $14 million projected for 2012, up to $26 million in 2013, growing up to $50 million by year-end 2014.

Income is also expected to make substantial gains – up to $9 million in 2013 and $13 million in 2014.

James Winsor, CEO of AVT, Inc., stated that revised forecast is based on several factors. “We have updated our projections for 2012 based on increased manufacturing volume in 4th quarter, and are projecting significant gains in the two years to come due to our implementation of the new Marley Coffee Stores, and the revenues we will realize from our licensing and leasing divisions.”

The projections, while significant, are still conservative and reflect realistic expectations of company growth, according to Winsor. “We are in the right market, at the right time, with the right products and the right services,” he commented. “Our anticipated growth is happening faster than initial forecasts, but is completely in line with market conditions and demand.”

For more information about AVT, please visit the website at: www.autoretail.com, or call the Investor Relations Department at: 800-240-5175

 

About AVT:

AVT, Inc. is a high quality leader in the automated retailing industry, offering technology solutions at 50% less than the best-known competitor.

AVT is able to work with any size company to design a custom automated retailing solution that drives traffic, increases sales, improves security, and lowers overhead. With an in-house design team, software developers, mechanical engineers and on-site manufacturing, AVT can take projects from concept to completion with speed and cost efficiency.

AVT’s stock is traded through the OTC Bulletin Board Markets, Ticker Symbol: AVTC.OB.

For more information on AVT, custom vending, or the Automated Retailing Industry, visit www.autoretail.com or call the Investor Relations Department at 800-240-5175.

Disclaimer

The financial guidance above was not prepared with a view toward complying with the guidelines established by the American Institute of Certified Public Accountants with respect to prospective financial information, but, in the view of our management, was prepared on a reasonable basis, reflects the best currently available estimates and judgments, and presents, to the best of management’s knowledge and belief, the assumptions on which we base our financial guidance.

However, this information is not fact and should not be relied upon as being necessarily indicative of future results, and we undertake no obligation to release publicly the results of any future revisions we may make to this financial information to reflect events or circumstances after the this press release.

Neither our independent auditors nor any other independent accountants have compiled, examined or performed any procedures with respect to the prospective financial information contained herein, nor have they expressed any opinion or any other form of assurance on such information or its achievability, and they assume no responsibility for, and disclaim any association with, the prospective financial guidance information.

 

Safe Harbor Statement

The following Safe Harbor Statement applies to all our press releases.

“This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company’s financial position and business strategy. The words or phrases “believe,” “think”, “should” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company’s expectations and estimates.

AVT, Inc. (Ticker: AVTC) (www.autoretail.com) AVT Founder and Chairman Shannon Illingworth was interviewed by Francis Gaskins, Editor of IPODesktop.com. Gaskins is one of Wall Street’s most respected analysts, and appears on financial programs including Bloomberg and CNBC, and in publications including the Wall Street Journal, USA TODAY, and Investors Business Daily. His website was named one of “Forbes Best IPO Sites.”

 

“AVT is in a high growth segment,” Gaskins commented, quoting a study by Frost and Sullivan, which was published on Intel.com. “You’ve been growing at about 45% per year, and it’s hard to find companies that have this kind of steady growth,” he added. “I think you’ve positioned yourself as a leader in the industry.”

 

Illingworth stated that 2012 was a good year for the company and for their product demand. “We’ve proven ourselves in the market and are now in over 3,000 Walmart stores,” Illingworth commented. “The market is hot for our products and technologies, and continues to grow rapidly.”

 

The company founder also announced that in 2013 he plans on putting as many as 1,000 Marley Coffee Automated Stores into the market, and unlike other systems the company builds for their clients, these will be AVT owned. “Moving forward, we’re going to own many of these units that we put out in the marketplace, so we will have a large source of recurring revenue.”

 

Gaskins, who is also the primary video IPO analyst at Jim Cramer’s TheStreet.com stated that he had confidence in Illingworth’s projections. “You’ve hit all of your goals to date. You were at Harvard Business School last month discussing new trends in marketing and leadership, and I think your intuition has been right on since founding the company,” Gaskins stated. “I think you’ll reach your new forecast goals.”

 

AVT had a large order from Rug Doctor in 2012, which required the company to repurpose 60,000 square feet of manufacturing and build new assembly lines. Now with that order fulfilled, AVT is geared up for large-scale production orders that provide economies of scale. “Now that we have our assembly lines geared up, we can provide even better service to our large customers, as well as continue to provide the type of customization and short-orders that made this company famous,” Illingworth stated.  

 

When asked what were his keys to success, Illingworth replied, “We take great brands and great products, and make them available to anyone, anytime, anywhere, in an automated environment,” he said. “And that equals success.”

 

To listen to the Francis Gaskins and Shannon Illingworth interview, visit: http://gaskinsco.com/avtc-12-19-12.mp3

 

To read the Gaskins/IPODesktop Analyst Review of AVT, please click here.

 

For more information on AVT, please call 800-240-5175 or visit the website at www.autoretail.com.

 

 

 

About AVT:

 

AVT, Inc. is a leading developer of automated and self-service retailing systems. AVT is able to work with any size company to design a custom automated retailing solution that drives traffic, increases sales, improves security, and lowers overhead. With an in-house design team, software developers, mechanical engineers and on-site manufacturing, AVT can take projects from concept to completion with speed, economy and ingenuity.

 

AVT’s stock is traded through the OTC Markets, Ticker Symbol: AVTC

 

 

 

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