The Speculative Investment Merit Rating Was Awarded by Reovest Growth Research
DALLAS, TX--(Marketwire - January 21, 2008) - Dixie Lee International Industries, Inc. (PINKSHEETS: DLII), parent company of the 40-year-old "Dixie Lee" brand name, with more than 80 franchised Chicken & Seafood restaurants open, today announced that Reovest Growth Research has initiated coverage on the Company with a Speculative Investment Merit rating and a $3.00-4.00 price target.
The Reovest Growth Research report states:
"If we utilize a $1.50 price bench mark for the company's proposed initial round of equity financing, this would increase shares outstanding by 3.3 million shares to a total of 42.43 million. Cash flow generation would be approximately $9 million annually, or $0.21/share. Given an industry multiple average of 43.50 X, and heavily discounting this by 50 - 60%, we believe that a projected P/FCF (price to free cash flow) multiple range of 17 X - 21 X is warranted. Based upon these parameters, the intrinsic value of the company should support a fundamental market price of between $3.65 - $4.55 per share. Execution and timing issues aside, the company is certainly on a fast track internationally, to expand franchise roll outs. Once the USA program gets underway -- this company could really fast track and get on some visible radar screens."
The full report is available online at www.dixieleechicken.com or you may request the full report by emailing the Investor Relations Dept. of Dixie Lee Chicken @ firstname.lastname@example.org with "Reovest" in the subject line.
About Dixie Lee
The Dixie Lee brand name started with the opening of the first Dixie Lee Chicken & Seafood restaurant in 1964 in Belleville, Ontario, Canada. Building on an old Louisiana chicken recipe, the Dixie Lee name has grown to include subsidiary and affiliated companies accounting for more than 80 branded restaurants open and more than 20 in development. Dixie Lee restaurant concepts include full service, fast casual and take-out. Dixie Lee International Industries, is currently developing its newest franchised concept, the classic "Dixie Lee Diner," a 60- to 80-seat stainless steel diner reminiscent of the nostalgic 1940s and 1950s family diners featuring breakfast, lunch and dinner. Dixie Lee International Industries, Inc. is expanding through both corporate-owned and franchised restaurant development throughout North America and abroad. www.dixieleechicken.com
About Reovest Growth Research
Reovest Growth Research, a wholly owned subsidiary of Reovest Financial, Inc., is an independent investment research and business consulting firm that specializes in providing research and investment banking consulting services to small and mid-cap listed companies. Reovest Growth Research has been compensated ten thousand dollars for this research report. Contact: Reovestinc@aol.com
Forward-looking statements in this release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities.