AUSTIN, TX, July 7 /PRNewswire-FirstCall/ - AGR Tools, Inc. (OTCBB-AGRT) ("AGR") and its wholly owned subsidiary, AGR Stone & Tools USA, Inc. ("AGR USA") would like to release the following Management Discussion for the fiscal year ended June 30, 2010:
To date, the year 2010 has been monumental for both AGR and AGR USA. The first and most prominent event occurred in May, when AGR and AGR USA completed a share exchange pursuant to which all the outstanding shares of AGR USA were exchanged for shares of AGR on a 1:1 basis, and AGR USA became AGR's wholly owned subsidiary. The reasons for AGR's acquisition of AGR USA were simple: to provide liquidity for AGR USA's long-term shareholders and to enable AGR USA to access capital to grow its inventory and expand its dealership network.
Throughout the share exchange process, AGR USA was actively expanding its dealership network from 11 dealers covering 18 territories to 31 dealers covering 48 territories. The company exceeded its growth targets during the past year for stocking dealers, and it now has coverage over 25% of the geographical United States. In fact, since June 30, 2009 AGR USA has increased its network of dealers by 182% and its geographical coverage by 167%. It also continues to add new dealers and territories on a monthly basis.
The U.S. diamond tool market is estimated to be worth in excess of $4 billion annually, and through aggressive marketing AGR USA is positioning itself to be an industry leader. The recently announced opening of a dealership in Oakland completed the company's coverage of Northern California, and it is now focusing on the large key markets of Southern California, New York and Florida. AGR USA expects to have dealers selected for those areas later this year.
The expansion of AGR USA's dealership network was accompanied by significant growth in its contract revenue. So far, the company has accumulated over $3.75 million in dealership contracts for its new fiscal year. This figure does not include the approximately $2 million in back orders that it is currently in the process of filling.
Another exciting development involved AGR USA's entrance into the public bidding arena. In June 2010, AGR USA won its first open bid for a $230,000 contract, and it estimates that this market will account for a significant percentage of its future revenues and expects to see more bid contracts decided in its favor. The company is actively expanding its product line and developing new products and technologies while pursuing attractive strategic alliance opportunities.
During the fiscal year that ended on June 30, 2010, AGR USA also opened a new office in Austin, Texas for its sales and marketing staff. AGR subsequently moved into this office to consolidate the operations of both companies.
AGR's common stock currently trades under the symbol AGRT on the OTCBB and the OTCQB, and under the symbol LVSA on the Berlin and Stuttgart Stock Exchanges. It is also beginning the process to list its common stock on the Canadian National Stock Exchange. Since AGR completed the acquisition of AGR USA, its management has become increasingly conscious of the company's share value and wishes to see its shareholders benefit from its success. "We are proud of our company and want our shareholders to feel the same pride," commented Rock Rutherford, the President and CEO of both AGR and AGR USA. "We are frustrated that the public market has not responded as favorably to our efforts as we had hoped, but we are confident that future developments will correct this and that AGR's share value will reflect the successes and true merits of AGR USA's operations."
About AGR Tools, Inc.
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AGR Tools, Inc. is a public company with its common stock quoted on the OTC Bulletin Board under the symbol AGRT and the Berlin and Stuttgart Stock Exchanges under the symbol LVSA.
About AGR Stone & Tools USA, Inc.
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AGR Stone & Tools USA, Inc. is a contract manufacturer and distributor of tools and accessories to the construction, building maintenance and demolition industries in the United States and Canada. It supplies more than 700 products through its stocking dealership network and web-site. The products include diamond based tools and adhesives and it specializes in producing consumable tools for the natural stone, engineered stone, concrete and masonry industries. Its goal is to provide its clients with superior quality products, excellent customer service and the most competitive prices in the diamond tool industry. The company has conducted extensive research and testing of its products, and uses the latest technologies to assure it is at the forefront of the diamond tool industry. AGR Stone & Tools USA, Inc. is a wholly owed subsidiary of AGR Tools, Inc.
More information on AGR Stone & Tools USA, Inc. can be found at: www.agrtools.com
Forward-Looking Statements:
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Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See AGR Tools, Inc.'s filings with the United States Securities and Exchange Commission which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
SOURCE AGR Tools Inc.
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