RICHARDSON, Texas -- Titan Global Holdings Inc. has filed a hindsight audit of Appalachian Oil Co. (Appco) with the Securities & Exchange Commission (SEC). The audit results of Appco are consistent with Titan's historical revenue guidance on Appco, which produced revenues of $385 million for the 11 months ended Aug. 31, 2007, or $420 million on an annualized basis, and $406 million and $317 million for the 12 months ended Sept. 30, 2006 and 2005, respectively.
This week, Titan affirmed revenue and earnings guidance for fiscal 2008. Titan Global Energy [image-nocss] is expected to contribute $433 million to Titan's stated overall revenue guidance with a range of $735 to $747 million for fiscal 2008.
"We were pleased to complete our hindsight audit of the recently acquired [Appco] and our filing with the SEC," said Bryan Chance, president and CEO of Titan Global Holdings, Richardson, Texas. "These audits affirm our revenue guidance of $433 million for fiscal year 2008. With the audit behind us, we are focused on strategic options to leverage Appco's distribution prowess with higher margin biofuel products and optimizing margins on inside sales as well."
Blountville, Tenn.-based Appco is the first acquisition of the company's recently announced Titan Global Energy, which was formed to aggregate energy assets that can provide significant opportunities for revenue and earnings growth, such as the continued vertical integration of the supply chain, as well as future acquisitions to complement Appco's existing retail and wholesale distribution footprint.
In Late October 2007, Titan announced its supply agreement with Tate & Lyle to advance the company's efforts to establish secure sources of biofuels and a higher margin product channel. Tate & Lyle, based in London, is a manufacturer of renewable food and industrial ingredients, with approximately $6 billion in annual revenues. The agreement was part of the strategic vision set forth by Titan Energy to expand its biofuel product lines and revenues through strategic agreements and acquisitions. The agreement is expected to enhance Titan's core profitability at wholesale and retail distribution, as well as further Titan Global Holdings' mission and commitment to environmental responsibility across its various divisions and business units.
Titan Energy said it has and will continue to capitalize on initiatives within the energy sector that can provide significant opportunities for revenue and earnings growth. Titan is seeking acquisitions to complement Appco's existing retail and wholesale distribution footprint, which currently reaches more than 160 petroleum and fuel product dealers in the southeastern United States, along with its 56 convenience store locations.
Appco's strong revenue base and 84-year history provides Titan with an ideal platform company for further expansion of its energy efforts, it said. And Appco's management team has more than 125 years of combined experience in the petroleum and c-store industry. Titan will preserve and leverage Appco's industry-leading management team.
Titan Global Holdings is a diversified holding company with a portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources. The company takes advantage of synergies between its subsidiaries to maximize revenue growth, internal development and strategic acquisitions. In fiscal 2007 Titan generated in excess of $111 million in revenues on a consolidated basis and projects fiscal 2008 revenues up to $747 million.
The Titan Global Energy Division aggregates traditional and next-generation energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
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