SOURCE: Phoenix Associates Land Syndicate

June 14, 2005 07:00 ET

Phoenix Associates Updates Shareholders on the Status of the Company

COVINGTON, LA -- (MARKET WIRE) -- June 14, 2005 -- Phoenix Associates Land Syndicate (OTC: PBLS), a holding company with assets in sand & gravel, soil products, land development, plumbing, trucking, contract hauling, construction, swimming pool construction and construction related industries, today released the following overall description of its business and how it evolved, in response to increasing interest being expressed in our Company by the investment community in recent weeks.

Phoenix was founded in the State of Nevada on March 23, 1978. The Company was originally incorporated under the name of Ro-Mac-Gold Ltd, as a private Nevada corporation, and then effective May 17, 1978 Ro-Mac-Gold, Ltd. merged with American Western Resources, Inc., a public Delaware corporation that had been incorporated on April 10, 1957, with Ro-Mac-Gold Ltd. being the surviving public corporation.

On October 22, 1996, its current President and CEO, Paul Alonzo acquired the Company, along with two of his lifelong friends. At that time the corporate name was changed to "Phoenix Associates Land Syndicate." The vision of these three men was to combine the strong management skills of Mr. Alonzo, who holds an MBA from Loyola University, along with the accounting skills and construction knowledge of the other two partners and together grow a construction based public holding company.

The development of Phoenix from that point on has been contrary to most corporate growth plans.

Mr. Alonzo and his two partners wanted to build a strong balance sheet with hard assets that, when in place, would provide the launching pad for future growth. The plan called for this growth to be carried out through acquisition of construction related companies, which could be vertically integrated.

Phoenix believed that the acquired companies could achieve higher profit levels through elimination of many duplicate duties previously done at each company, which, after acquisition by Phoenix, would be done by one corporate staff. Additionally, by joining a larger group, many other cost cutting measures could be implemented, thereby squeezing the maximum profits from each entity.

Murphy Sand & Gravel:

The first acquisition of the new "Phoenix" was Murphy Sand and Gravel in 1997, and proceeded to invest millions of dollars in this 820-acre property located in Pearl River, Louisiana, preparing it for implementation of mining that is now going on and expanding rapidly.

This site was tested and evaluated by Soil Testing Engineers and Butler and Associates in February 1997, and was then estimated to have recoverable mineral reserves of over $260 million based on the lowest prices charged by each of the other mining operations in the area for like products. The Company believes this 1997 valuation of the 820-acre property is low in today's market and is in the process of updating the valuation of this asset. In addition, soil products ("overburden") which is being removed to reach the gravel is in huge demand in the area and based on a price of $0.75 per yard net after cost of removal are worth another 30 plus million dollars.

This first acquisition is the foundation of "Phoenix." Phoenix has divided the 820 acres that comprise the Murphy Sand and Gravel operation into 50-acre or 100-acre parcels that Phoenix is contracting independent operators to mine. By doing so, Phoenix has removed all of the unknown operational cost of the mining business and has a guaranteed gross profit per ton of material sold.

Phoenix has, as of this writing, three operators under contract with one additional gravel and sand mining contract pending. Beyond the contracts mentioned, Phoenix is negotiating with several large operations that are seeking more than one parcel to mine. Phoenix estimates that, upon full operation of the Murphy Sand and Gravel Pit, gross revenues should be in the range of $10 million per year with net profits of five hundred thousand dollars.

The second acquisition by Phoenix was Bayou State Trucking. Bayou State Trucking is a brokerage company that has over 300 trucks in its brokerage fleet. The main products hauled by Bayou State Trucking are sand, gravel and soil products. Bayou State provides the trucking for the mining operators at the Murphy Sand and Gravel operation plus many other contractors on a job-by-job basis.

Backyard Leisure & Recreation Market:

The third business area Phoenix has entered is the backyard leisure and recreation market. Phoenix acquired Ann Arbor Pool Builders, Inc., which is a licensed General Contractor in Michigan. This company builds high end in-ground pools and spas. Phoenix believes that development of this type of business and other affiliated businesses will add substantially to overall gross revenues and net profit of the Company.

Phoenix's plan of growth for this division is to branch out from the initial acquisition and go south. Phoenix believes it can overlap coverage between acquisitions so long as they remain within four hours driving time of each other. Phoenix has targeted the following cities for its acquisition efforts: Ann Arbor & Detroit, Michigan; Dayton and Cincinnati, Ohio; Knoxville and Chattanooga, Tennessee; Atlanta, Georgia; Gainesville and Pensacola, Florida. Moving west, the Company is targeting Indianapolis, Indiana; Nashville and Memphis, Tennessee; Jackson, Mississippi; and Baton Rouge, Louisiana. By acquiring in the above-mentioned areas, Phoenix plans to cover thousands of square miles of the Midwest to Southeastern and South Central U.S.

Beyond the initial purchase, Phoenix has completed a Detroit, Michigan, acquisition by acquiring Great Lakes Pool Plastering. Pool plastering is a service required by all custom pool builders using cement or gunite. This is the pool division's first vertically integrated acquisition. Phoenix is currently in negotiation in Dayton, Cincinnati and Indianapolis, plus another pool builder in the greater Detroit, Michigan, area.

Phoenix believes that this particular area of growth will be extremely large. Since 9/11 people have started to seek forms of recreation and vacations that requires less travel. Gasoline prices have added further to this reduction in travel. Phoenix believes that backyard investment will continue to increase for years into the future. Because of this belief, Phoenix plans to develop the pool division rapidly, along with other backyard products that can be piggybacked on top of the initial pool sale. Phoenix is looking in the areas of hot tubs, either manufactured by Phoenix for its own companies, or imported for resale by its companies, backyard kitchen equipment, sports equipment, and playground equipment with the ultimate goal of providing complete outside design which would be similar to the service offered by an interior designer for the inside of the home.

Phoenix believes that this division will have 12-15 related companies within the next 2-year period and will generate in excess of $25 million per year in gross revenues.

Acquisition & Business Development Division:

Phoenix continues to explore many possible areas of future expansion through its acquisition and business development division. This division is constantly looking for new acquisitions for the current operating divisions plus evaluating the constant stream of opportunities offered to Phoenix.

Since Mr. Alonzo and his partners purchased Ro-Mac-Gold Ltd in 1996 and formed the new Phoenix Associates Land Syndicate, the business plan has developed. Phoenix has been tested many times and each time Phoenix has risen to the occasion. Each acquisition, each test has caused Phoenix to grow, to learn, to become stronger, and more secure in its direction and business plan.

The most recent new development for Phoenix is the creation of an oil and gas exploration division. This division initially will be a joint venture with Mr. Richard Watson, who has twenty-one years of experience in oil and gas exploration, along with many contacts in finance, drilling, exploration and development of new fields.

Investor Information:

Phoenix, trading on the OTC Pinksheets (Symbol: PBLS) has about 2,600 shareholders of record. The Company has a total of 377,291,802 shares issued and outstanding as of June 10, 2005, of which 228,085,575 are restricted shares, and the remaining 149,206,227 shares are non-restricted shares and considered to be the public "float" shares. Based on the closing price of PBLS on June 10th the Company's Market Cap is about $5.3 million.

For more information about Phoenix go to the Company's website at: http://www.pbls.biz

Forward Looking Statements

This press release contains statements that are "forward looking" and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward-looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

Contact Information

  • For More Information Contact:
    Paul Alonzo
    Phoenix
    (985) 845-4627
    Email Contact

    Mike Mulshine
    Osprey Partners
    (732) 292-0982
    Email Contact