SOURCE: Delivery Technology Solutions

Delivery Technology Solutions

December 03, 2010 07:00 ET

Delivery Technology Solutions Issues CEO Update Letter to Shareholders

CEO Ryan Coblin Updates Shareholders on Current Status and Milestones

BOCA RATON, FL--(Marketwire - December 3, 2010) - Universal Delivery Solutions, the operating unit of Delivery Technology Solutions Inc. (PINKSHEETS: DTSL), has issued an update by CEO Ryan F. Coblin.

Shareholders,

It gives me great pride to update our loyal shareholders on the remarkable strides our company has made over the past 12 months. As we approach the beginning of 2011, I am pleased with the direction of the company, the dedication of the staff and consultants, as well as the loyalty of the old and new shareholders. Our company is more poised than ever to achieve its short term and long term objectives as we move into 2011. As we end 2010 and look to a prosperous 2011, we must reflect back on the many accomplishments we have made over the last 12 months.

Last year in the fourth quarter of 2009, we launched our first major test market with SUBWAY® for delivery and catering in the Washington, D.C. area. The data collected and the results from the success in that test pilot were instrumental in our subsidiary Company UDS receiving a National Vendor Agreement with SUBWAY in the second quarter of 2010. Over the past few months, we have been engaged with numerous territory agents and individual Franchisees across the country who have endorsed our program and see the tremendous opportunities that lie ahead. We have added a few thousand locations to our various programs, and anticipate that by the end of 2011 we will have added enough locations to have achieved full nationwide coverage for our catering and delivery platform. Our relationships are the culmination of years of hard work, tremendous dedication and relationship building which has resulted in our move into the revenue phase of our business model.

In early 2010, UDS engaged in a three way national contract between DAI (SUBWAY) and the largest digital theatre chain in the country. The agreement has enabled us to get a footprint nationwide and afforded us the opportunity to showcase our software and management our platform in numerous multi-city, multi-venue events. We successfully demonstrated our ability to serve thousands of patrons in dozens of theatres nationwide simultaneously while maintaining the best in breed that customer service has to offer. Our partnerships remain strong and should provide revenue growth for many years to come. We look forward to continuing to coordinate and facilitate many large and small events in the coming years.

Another area of our business that continues to increase and help build our data base is our strategic partnership program. Although just initiated at the end of the 2nd quarter, it continues to grow and prosper and we now feel it is poised for rapid growth going forward. Hewlett-Packard, T-Mobile, and American Express are all examples of companies that have already joined our program and are enthusiastic about the relationships being established. By forming strategic alliances with these fortune 500 companies, we are able to bring our relationships together by cross marketing and branding all of our services like a giant "social network." One of the additional benefits to our company is that our strategic partners now use our services for their large and complex catering events. With these partnerships in place, we believe that we can build a significant corporate/customer base that has the potential to add significant value to our shareholders equity in the future. As we continue to build a significant corporate/customer base, the data base could add significant value to our company, thus creating additional shareholders equity down the road.

As was previously reported, UDS coordinated and managed the nationwide, simultaneous catering and delivery of food to over 10,000 employees at 700 Best Buy, Fry, and Micro Center locations across 5 different time zones in an event funded by Hewlett-Packard. This event not only showcased our complex order delivery system and technology, but the successful management of large events. According to an event coordinator at Hewlett-Packard, the event was a tremendous success. With this large event behind us we have now focused our sales and marketing efforts on more large scale events as well as additional fortune 500 companies that sponsor or hold similar events on this scale.

Another milestone and accomplishment in 2010 was the company's successful upgrade in status to "current information" from the OTC Markets in November. The diligent work by our staff, management, accountants, and attorneys to compile and present all necessary disclosure information to the public was paramount. It is our intention to become fully reporting in the future and eventually have our company's shares trade on a larger exchange. We believe that in attaining reporting status, our company can benefit from many new opportunities that are not available to us today. As CEO, I regard this as one of our highest priorities for 2011. 

From a financial perspective, the company has been positioning itself as it looks to become profitable some time in 2011. As we all are aware, since 2008 our economy has seen very challenging times for both businesses and consumers. Many banks, lending institutions and the like virtually shut down the way they lend to emerging growth companies such as ours. With the challenges that have been presented to us, my management team has combined a very delicate balance of continuing to grow the company, fund the startup of our revenue growth and clean up some of balance sheet issues. It has required us to fund the company using a wide variety of financial products that have enabled us to sustain the business, and grow the company at the same time. With that in mind, now that we are in full disclosure with OTC Markets we will update our shareholders via our published disclosure and financial statement that we are required to publish on a quarterly basis. It is however necessary for us to share with each of our shareholders that we have been aggressively funding the company this quarter, which will position us to be much stronger going forward. As was previously noted this funding has enabled us to solidify our balance sheet, and set aside some necessary funds for the major revenue growth that we have charted out in the future. As a result of some of these funding products, there has been dilution to our share structure. This dilution we believe is already reflected in our current market capitalization. As 2010 comes to a close, it is our intention for the next several years to no longer engage in any capital funding that could result in dilution to our shareholders. Our internal projections show that through top line revenue growth the company potentially could become profitable as early as the third quarter of 2011. Our projections forecast revenue of more than 13 million dollars in 2011 and upwards of 40 million dollars for 2012. It is very important to note that there are many factors that come into play in attaining our revenue projections and our staff is working very hard to make this happen.

I would like to finish by thanking each and every one of our shareholders for all of their support, dedication and patience with the development and growth of "OUR" company. The entire UDS team is dedicated to reaching all of our goals. If anyone ever has a question please feel free to contact our office at anytime. May all of you have a very healthy and happy New Year and may all of your wishes for the New Year come true.

Sincerely,
Ryan F. Coblin
CEO - Delivery Technology Solutions, Inc.

About: Universal Delivery Solutions, Inc.
Universal Delivery Solutions, Inc. (PINKSHEETS: DTSL), www.universaldelivery.com, is the leader in providing comprehensive custom-developed catering/delivery solutions to industries throughout North America. Universal Delivery Solutions, Inc (UDS) is a wholly-owned operating subsidiary of Delivery Technology Solutions Inc. The company offers blended solutions through a seamless system that integrates Customer Relationship Management (CRM) and Call Center IT services utilizing a proprietary technology backbone to offer convenience, consistent quality, flexibility, accountability and value for consumers and companies.

Safe Harbor:
The statements in the press release that relate to the company's expectations with regard to the future impact on the company's results from acquisitions or actions in development are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. The statements in this document may also contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Since this information may contain statements that involve risk and uncertainties and are subject to change at any time, the company's actual results may differ materially from expected results.

Contact Information

  • Contact:
    Delivery Technology Solutions, Inc.
    Mr. Ryan Coblin
    CEO
    561-674-9500