DineWise Recieves Stellar Review In Newsweek
DineWise, Inc. (OTCBB: DWIS) has caught our attention lately; partially due the company's promising 2006 performance, both operational and financial; and partially due to the sheer attractiveness of its business plan. DWIS experienced transformational growth in '06 and is setting the table for an exponentially better 2007.
Moreover, Dinewise was recently profiled in NEWSWEEK Magazine (http://www.parsintl.com/pdf/13785-N-Dinewise.com.pdf) and deemed a "good value" in comparison to industry competitors. The profile also stated that DWIS products were the only that didn't taste frozen. With a weekly circulation of 3,160,000; a testimonial in Newsweek could result in more than a few new customers.
With Americans as crunched for time and out of shape as ever, DineWise has positioned itself to put food on the table for individuals and families across the contiguous United States. With celebrities at the forefront of the prepared meal movement, the general public is quickly warming up to the idea of bringing the family dinner back and improving their families health at the same time. All this for a portion of what it costs to eat out these days and the convenience of eating at your own kitchen table. Dinewise is positioned to take advantage of Americans' chaotic lives and help deliver a healthful, helpful product. Needless to say, we like the idea almost as much as we like the significant demand that Dinewise stands to fill.
DWIS is a leading direct marketer of chef- prepared meats and quality foods that is aggressively targeting the thriving in-home dining solutions market. From fine dining to health conscious meals, these guys have expanded their catalog (circulated to 184K in the U.S.) to offer just about anything anybody could want to eat (5,000 customized choices).
In its 50-year operating history, the company has served more than 1 million households and generated $2 billion worth of sales in doing so. I would guess that after five decades of experience, DWIS has a pretty good idea of how to grow in their key markets.
Notching revenues of $10.9 and $3 million for fiscal 2006 and Q4 '06 respectively, DineWise has recently made the transition from a door-to-door, direct-to-consumer business model to a more robust, multi-faceted strategy driven by e-commerce and direct mail catalogs. The decision just makes sense on so many levels.
2006 was a monumental year for the good folks at DWIS; the company launched a complete re- branding and an improved business model that helped expand its serviceable market from 33 to 48 U.S. states (Sorry Alaska & Hawaii). Although year- over-year and fourth quarter revenues are indeed down in comparison to 2005, sales of DineWise (r) branded products, or the company's new bread and butter (no pun intended) increased to $1.1 million in 2006 for a 343% jump over '05 figures. The new brand actually experienced significant growth in each consecutive quarter during '06. Check it out:
(Data courtesy of DWIS)
- First Quarter 2006 - $81,000
- Second Quarter 2006 - $166,000
- Third Quarter 2006 - $279,000
- Fourth Quarter 2006 - $541,000
Total: $1.1 Million
In addition to growth of the DineWise (r) brand, recent corporate announcements highlight a ton of other positive news that exemplifies the progress made at DWIS during 2006.
- Newly acquired customer accounts increased 33% in Q4
- Newly acquired customer accounts increased 10% in 2006
- Net losses available to common stock holders dropped 4% in 2006
- Net loss per share in Q4, '06 was down 38% in comparison to the same reporting period in 2005
- The company has generated annualized cost savings of approximately $1,000,000 through new fulfillment outsourcing and other cost cutting programs
According to data released by DWIS, in 2006 the DineWise (r) brand had approximately 10,000 customers from which it generated $541,000. This works out to about $54.10 per customer each year. The company also stated in a release dated 12/27/06, that it plans to increase the DineWise (r) customer base to 25,000 by the end of 2007. This type of expansion, assuming the company just maintains its current per customer revenues, would result in revenues of nearly $3.4 million. Coupled with additional revenues (totaling $9.8 mil in '06) that are likely to grow as a result of the company’s improved and more aggressive business model, this amount of growth should create a very exciting situation for investors by the end of 2007, if not sooner.
A testament to the company's future potential in our opinion is the fact that up until now, DWIS had made no move to target new niche markets including Business-to-Business/Corporate Incentive and Rewards; Senior/Caregiver and Diet Management. It appears that things have changed, in a major way. The company is now leaving no stone unturned in its quest for domination of the in-home dining solutions market.
If DWIS is able to keep pace with recent expansion and continue to maintain relationships with longstanding customers, we see a tremendous upside to this company; particularly at current levels. We suggest you take a look at the DineWise website: www.dinewise.com. Worst case scenario: you get some delicious food at an affordable price.
Moreover, Dinewise was recently profiled in NEWSWEEK Magazine (http://www.parsintl.com/pdf/13785-N-Dinewise.com.pdf) and deemed a "good value" in comparison to industry competitors. The profile also stated that DWIS products were the only that didn't taste frozen. With a weekly circulation of 3,160,000; a testimonial in Newsweek could result in more than a few new customers.
With Americans as crunched for time and out of shape as ever, DineWise has positioned itself to put food on the table for individuals and families across the contiguous United States. With celebrities at the forefront of the prepared meal movement, the general public is quickly warming up to the idea of bringing the family dinner back and improving their families health at the same time. All this for a portion of what it costs to eat out these days and the convenience of eating at your own kitchen table. Dinewise is positioned to take advantage of Americans' chaotic lives and help deliver a healthful, helpful product. Needless to say, we like the idea almost as much as we like the significant demand that Dinewise stands to fill.
DWIS is a leading direct marketer of chef- prepared meats and quality foods that is aggressively targeting the thriving in-home dining solutions market. From fine dining to health conscious meals, these guys have expanded their catalog (circulated to 184K in the U.S.) to offer just about anything anybody could want to eat (5,000 customized choices).
In its 50-year operating history, the company has served more than 1 million households and generated $2 billion worth of sales in doing so. I would guess that after five decades of experience, DWIS has a pretty good idea of how to grow in their key markets.
Notching revenues of $10.9 and $3 million for fiscal 2006 and Q4 '06 respectively, DineWise has recently made the transition from a door-to-door, direct-to-consumer business model to a more robust, multi-faceted strategy driven by e-commerce and direct mail catalogs. The decision just makes sense on so many levels.
2006 was a monumental year for the good folks at DWIS; the company launched a complete re- branding and an improved business model that helped expand its serviceable market from 33 to 48 U.S. states (Sorry Alaska & Hawaii). Although year- over-year and fourth quarter revenues are indeed down in comparison to 2005, sales of DineWise (r) branded products, or the company's new bread and butter (no pun intended) increased to $1.1 million in 2006 for a 343% jump over '05 figures. The new brand actually experienced significant growth in each consecutive quarter during '06. Check it out:
(Data courtesy of DWIS)
- First Quarter 2006 - $81,000
- Second Quarter 2006 - $166,000
- Third Quarter 2006 - $279,000
- Fourth Quarter 2006 - $541,000
Total: $1.1 Million
In addition to growth of the DineWise (r) brand, recent corporate announcements highlight a ton of other positive news that exemplifies the progress made at DWIS during 2006.
- Newly acquired customer accounts increased 33% in Q4
- Newly acquired customer accounts increased 10% in 2006
- Net losses available to common stock holders dropped 4% in 2006
- Net loss per share in Q4, '06 was down 38% in comparison to the same reporting period in 2005
- The company has generated annualized cost savings of approximately $1,000,000 through new fulfillment outsourcing and other cost cutting programs
According to data released by DWIS, in 2006 the DineWise (r) brand had approximately 10,000 customers from which it generated $541,000. This works out to about $54.10 per customer each year. The company also stated in a release dated 12/27/06, that it plans to increase the DineWise (r) customer base to 25,000 by the end of 2007. This type of expansion, assuming the company just maintains its current per customer revenues, would result in revenues of nearly $3.4 million. Coupled with additional revenues (totaling $9.8 mil in '06) that are likely to grow as a result of the company’s improved and more aggressive business model, this amount of growth should create a very exciting situation for investors by the end of 2007, if not sooner.
A testament to the company's future potential in our opinion is the fact that up until now, DWIS had made no move to target new niche markets including Business-to-Business/Corporate Incentive and Rewards; Senior/Caregiver and Diet Management. It appears that things have changed, in a major way. The company is now leaving no stone unturned in its quest for domination of the in-home dining solutions market.
If DWIS is able to keep pace with recent expansion and continue to maintain relationships with longstanding customers, we see a tremendous upside to this company; particularly at current levels. We suggest you take a look at the DineWise website: www.dinewise.com. Worst case scenario: you get some delicious food at an affordable price.
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