Science & Technology
Science and Technology
Science and Technology
Tue, October 20, 2009
Mon, October 19, 2009 Deer Valley Corp.: Deer Valley Corporation Establishes Subsidiary to Provide Limited Inventory Financing to Qualified Retail Di
TAMPA, FL--(Marketwire - October 19, 2009) - Deer Valley Corporation ("Deer Valley" or the "Company") (
Since September 2008, the nation-wide credit crisis has resulted in a precipitous reduction in the availability of inventory financing for retail outlets in the factory built housing industry. This reduction in credit facilities has impaired the short-term marketing thrust and the long-term viability of many independent dealers and residential developers including some who distribute Deer Valley Homes. Through the establishment of the new financial subsidiary, Deer Valley is aggressively moving to counter the credit squeeze that many of the Company's existing dealers are experiencing. The existence of DVFC also positions the Company to potentially gain "shelf space" at additional independent dealer sales centers in regions where the Company is not currently represented.
The Company will fund the new financial subsidiary through the reallocation of existing cash reserves in combination with funds available from an enhanced commercial bank credit facility. Administrative services for DVFC's new floor plan loan program will be provided by Triad Financial Services, Inc. ("Triad") of Jacksonville, Florida.
Mr. Steve Lawler, Deer Valley's CFO, commented, "The new subsidiary is expected to directly produce modest gains in consolidated revenue and profits. The more significant impact on the Company's future earnings is expected to be derived from increased home sales that will be the indirect result of strengthening the dealer network." Mr. Lawler added the following cautionary note, "The addition of the financial subsidiary to our consolidated financial statements beginning in the fourth quarter of 2009 will reflect increases in both our short-term assets and liabilities with little or no associated change in net asset value ('equity'). Nevertheless, it should be anticipated that the shift to a business model employing greater leverage will inherently result in a change in certain balance sheet ratios when compared to the historical values of the same ratios."
Forward-Looking Statement: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks and uncertainties, including the likelihood that discussions with third parties referred to in this press release will not progress beyond preliminary negotiations. Such forward-looking statements are not guarantees of performance, and Deer Valley's results could differ materially from those contained in such statements. You can generally identify forward-looking statements through words and phrases such as "forecast," "seeking," "pursuing," "anticipate," "believe," "estimate," "expect," "intend," "plan," "budget," "project," "may be," "may continue," "may likely result," and similar expressions. Such forward-looking statements speak only as of the date of this release, and Deer Valley undertake no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.
About Deer Valley
Deer Valley is a growth-oriented manufactured home builder with headquarters in Tampa, Florida and operations in Guin, Alabama. The Company is dedicated to offering high quality homes that are delivered with a sense of warmth, friendliness, and personal pride. The Company also owns one idle plant in Sulligent, Alabama.
The corporate offices of Deer Valley Corporation are located at 3111 W. Dr. MLK Blvd., Tampa, Florida 33607
Additional information can be found at: [ http://www.deervalleycorp.com ].
