Message-ID: <31307127.1075840986490.JavaMail.evans@thyme> Date: Thu, 17 Jan 2002 11:17:48 -0800 (PST) From: specsheet-txt-2@financialmarketadvisor.com To: alewis@ect.enron.com Subject: Research Summary - SSFL Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Investor Spec Sheet @ENRON X-To: alewis@ect.enron.com X-cc: X-bcc: X-Folder: \ExMerge - Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: andy lewis 6-25-02.PST Investor Communications Research Summary distributed by Investor Spec Sheet. If you received this in error or no longer wish to receive mailings from Investor Spec Sheet, please find remove instructions at the bottom of the page. To see the complete Research Report please go to www.investorcommunications.net/reports/ssfl. ____________________________________ RESEARCH SUMMARY Single Source Financial Services Corporation from Investor Spec Sheet and Investor Communications www.investorcommunications.net/reports/ssfl ____________________________________ Symbol: SSFL Recommended: 1/15/02 Price at 01/15/02: $0.54 52 Week Range: $0.04 - $1.22 Recent Price (01/15/02): $0.54 Market Capitalization: $31.9M Shares Outstanding: 59.1M Float: 7.9M Daily Volume (10-day avg): 139.1K Delayed Quote: http://quote.yahoo.com/q?s=SSFL.OB&d=t ____________________________________ * Financial Summary Single Source Financial Services Corporation provides financial products and services to small and mid-sized businesses. The Company's initial business focus is the selling and leasing of credit card processing equipment, as well as the selling of third party processing services, to 'brick and mortar' and web-based merchants. Net sales for the nine-months ended July 31, 2001, were $802,454 as compared to $306,685 for the nine-months ended July 31, 2000, an increase of $495,769 or 261%. The major reason for the increased sales relate to the Company's expanded operations that existed in the current nine-month period compared to the same period last year. During the current period, the Company operated from 8 different offices located in four different states compared to the same period last year when the Company operated from only two offices. General and administrative expenses incurred for the nine-months ended July 31, 2001, was $1,646,966, as compared to $418,262 for the same period last year, an increase of $1,228,704, or 393%. The increase in overhead for the current nine months as compared to the same period last year relate to the Company's increased operations that existed during the current period compared to the same period last year. Rent expense for the nine-months ended July 31, 2001, amounted to $136,971 as compared to $32,530 for the prior year's nine-month period. Payroll and related employee benefits including sales commissions and draws amounted to $911,286 for the nine-month period ended July 31, 2001, as compared to $276,217 for the same period last year. Telephone expense for the current nine-month period amounted to $90,111, as compared to $17,723 for the same period last year. Advertising and related marketing costs for the current period amounted to $58,964, as compared to $25,073 for the same period last year. Professional fees for the nine-month period ended July 31, 2001, amounted to $140,337 as compared to $1,227 for the same period last year. The Company filed a Registration Statement with the Securities and Exchange Commission during the current nine month period and incurred professional fees in its preparation totaling $88,938. Significantly all of the interest expense for the nine-month period ended July 31, 2001 pertains to the interest accruing on the Company's obligation to B.A.A.M. (a related party). Interest expense for the nine-months ended July 31, 2001, amounted to $44,833 as compared to interest expense incurred during the same period last year of $2,278. The Company also received income from residuals amounting to $118,922 during the current year. Income from residuals during the same period last year was insignificant and was included in gross sales Principal business address: 121 North San Vicente Boulevard Beverly Hills, CA 90211-2303 (888) 262-1600 Investor Relations: 877-310-4768 www.ssfl.info * Business Description Single Source Financial Services Corporation is a New York corporation formed on September 19, 1994. Our Company was incorporated under the name Ream Printing Paper Corporation (Ream). In October 1994, the Company issued its shares to its shareholders in exchange for assets in another company. Ream was then spun off. The exchange was accomplished under Rule 504 of Regulation D promulgated under the Securities Act of 1933 and a Form D was filed with the Securities and Exchange Commission. In November 2000, the Company changed its name to Single Source Financial Services Corporation. The current control group of shareholders, which includes the officers, directors, and their spouses, took control of the Company on July 24, 2000 in a private transaction The Company is currently offering, or is in negotiations to offer, the following products and or services: * Electronic Transaction Processing Equipment Single Source Financial Services Corporation sells electronic transaction processing equipment to merchants who wish to offer credit card and debit card payment options to their customers. The Company utilizes an outside leasing company to provide those merchants who elect not to purchase the equipment with the option of a lease. Leasing accounts for the majority of the Company's income from these activities. The Company is actively pursuing either the acquisition or formation of a leasing company. By cutting out the "middle-man" and carrying its own leases, the Company expects to dramatically increase revenues. * Credit Card Processing Service Single Source Financial Services Corporation currently markets and sells the credit card processing services of CardReady International, Inc. The Company has secured an option to acquire CardReady International, Inc. If the acquisition is completed, the Company will be able to provide processing services directly to its own customers. The Company will then also be able to act as a third-party processor to independent sales organizations around the country. The Company's websites are located at www.mysinglesource.com and www.cardready.com. Expanded Business Description: www.investorcommunications.net/reports/ssfl/ssflbd.htm Key Management www.investorcommunications.net/reports/ssfl/ssflkey.htm ____________________________________ * Analyst Summary The credit card processing market has reached explosive levels in the last few years. In 1999 and 2000, industry-wide, card-based payments increased by 16% and 14% respectively, with debit card usage leading the way in growth. In the year 2000, card-based payments represented 29% of all domestic payment transactions. By the year 2010, it is estimated that card-based payments will represent almost 50% of all domestic payment transactions. With the acquisition of a processor (CardReady International, Inc.), the Company will be able to dramatically increase its processing revenues as well as its market share. CardReady International's sales and marketing operations are currently adding more than 100 to 200 new accounts per month, each worth from $500 to $1,000 in annual income. Further, the Company is in negotiations with independent sales organizations to add more that 1,000 new accounts per month. Single Source Financial Services Corporation plans to expand its operations to include various other financial products and services. Once this is accomplished, the Company will be able to effectively cross-sell to its ever-expanding client base. As credit cards have become the main method of payment for goods and services , the credit card processing market has realized explosive growth. Single Source Financial Services Corporation has positioned itself to capitalize on new market opportunities by targeting a growing market sector largely left untapped by bigger providers: Small to mid-sized businesses. ____________________________________ * Research Report Complete Research Report from Investor Communications can be viewed at www.investorcommunications.net/reports/ssfl. ____________________________________ * Contact Information Single Source Financial Services Corporation Jeff Carlson 877/310-4768 investorrelations@ssfl.info Magnum Financial Group, LLC Michael Manahan 213/488-0443 mike@magnumfinancial.com Visit the Company Website at www.mysinglesource.com. ________________________________________________ IMPORTANT DISCLAIMER Investor Communicatons is an independent electronic publication providing information on selected public companies. 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