Science & Technology
Science and Technology
Science and Technology
Mon, November 9, 2009 
SAN JUAN CAPISTRANO, CA--(Marketwire - November 9, 2009) - XnE, Inc. (
Dear Shareholder and Interested Party,
I hope this communication finds you well. As announced recently, [ XnE, Inc. ] has entered into a Stock Purchase Agreement with The Triple Play Group, LLC. The Triple Play Group, LLC owns and operates the [ St. George Roadrunners ], which is a professional independent minor league baseball team located in St. George, Utah. The Roadrunners are one of nine teams currently playing in the Golden Baseball League. The 2009 season is the third year of operations for the Roadrunners who play at Bruce Hurst Field located on the campus of Dixie State College.
Furthermore, XnE, Inc. and [ The Golden Baseball League ] have agreed to terms for the acquisition of Operating Rights, which would allow XnE to form 4 new teams throughout the Hawaiian Islands. Our 1st team will be located on the Island of Maui and we will throw out the first pitch in the upcoming season of 2010. XnE has signed a lease with the County of Maui to play at War Memorial Complex and will announce our new name and management team shortly. We are also in talks with the other Islands regarding securing a Stadium for 3 more teams.
Recently, our management team has received communication from several shareholders inquiring about our 2008 10k and the 2009 10Q's. The management team would like to convey our apologies for the late filings and assure our shareholders that we are working diligently with the [ SEC ] and in the process of signing an agreement with a [ PCAOB ] auditor. Our delay is due to past filings prior to the new management team and will soon come to terms with the SEC, so that all filings are current and our shareholders will be better informed.
XnE, Inc. is focused on expanding its portfolio throughout the United States, but will grow at a rate that allows us to be financially secure. XnE, Inc. intends to develop within three years a nationally recognized company with 4-5 teams in strategic market areas of the United States with combined annual sales revenues exceeding approximately $25 million. Our website address is: [ www.xneinc.com ]
The following is a three year projection. These financial projections are based on information currently available and are subject to important assumptions, risks and uncertainties, which are difficult to predict. Therefore, the actual results may be materially difference from those presented. No assurances can be given that such revenues or net earnings will be achieved. All statements in this press release, including the financial projections, are based on the objectives of management using various assumptions relating to the future condition of outside variables such as the operating environment, economies and market in which we operate. These statements are subject to a number of risks, uncertainties and other factors including our growth expectations, ongoing funding capital requirements and specifically our growth prospects within the industry that we operate. Other risks include our limited operating history, history of operating losses, the perceived acceptance by the community of our teams, the need for financing and the risk of increased competition. Moreover, in preparation of our financial outlook, management has made certain specific assumptions as to the overall industry. These assumptions, although considered reasonable by us at the date of this press release, may prove to be inaccurate and consequently results could differ materially from our expectations as set forth. We caution you to not place undue reliance on the financial projections contained in this release.
Three Year Profit Projection XnE, Inc. 2010 % 2011 % 2012 % Annual Sales $2,239,503.40 100.00% $4,611,492.00 100.00% $7,315,000.00 100.00% Corporate Sales $ 500,000.00 22.33% $ 750,000.00 16.26% $ 950,000.00 12.99% St. George Sales $ 801,257.40 35.78% $ 885,000.00 19.19% $ 925,000.00 12.65% Maui Sales $ 938,246.00 41.90% $1,100,000.00 23.85% $1,250,000.00 17.09% Team 3 N/A $ 938,246.00 20.35% $1,100,000.00 15.04% Team 4 N/A $ 938,246.00 20.35% $1,100,000.00 15.04% Team 5 $1,050,000.00 14.35% Team 6 $ 940,000.00 12.85% Cost/Goods Sold(COGS)$ 257,858.48 11.51% $ 527,800.08 11.45% $ 847,683.20 11.59% ------------ ------ ------------- ------ ------------- ----- Gross Profit $1,981,644.92 88.49% $4,083,691.92 88.55% $6,467,316.80 88.41% ------------ ------ ------------- ------ ------------- ----- Operating Expenses Corporate Expenses $1,072,339.63 47.88% $1,859,845.89 40.33% $2,647,352.15 36.19% Game Operations Expenses $ 479,898.70 21.43% $ 959,797.40 20.81% $1,433,242.60 19.59% Team Expenses $ 489,598.00 21.86% $ 979,196.00 21.23% $1,521,194.00 20.80% ------------ ------ ------------ ------ ------------- ----- Total Expenses $2,041,836.33 91.17% $3,798,839.29 82.38% $5,601,788.75 76.58% ============ ====== ============= ====== ============= ===== Net Profit Before Tax $ (60,191.41) $ 284,852.63 $ 865,528.05 Income Taxes - - - Net Profit After Tax $ (60,191.41) $ 284,852.63 $ 865,528.05 Owner Draw/ Dividends - - - ------------ ------------- ------------- Adj. to Retained Earnings $ (60,191.41) $ 284,852.63 $ 865,528.05 ============ ============= =============
Michael Cummings
CEO/Chairman
About XnE, Inc.
[ XnE, Inc. ] is part of the "FASTEST GROWING FAMILY SPORT IN AMERICA and that is MINOR LEAGUE BASEBALL." Over 50 million people attend minor league baseball games each season. In 2004 through 2008, minor league baseball drew more total fans to their games than the NBA, NFL and NHL combined and minor league teams are now in or near 100% of the top 50 US cities.
Minor league baseball appeals to families who appreciate its ability to entertain at a reasonable price. A family of four can go to the game including tickets, snacks and parking for around $40. Minors' average ticket price is $6, Major League Baseball is $18, NBA is over $41 and the NFL is over $50. In a recent survey, 81% of respondents said they want to spend more time with family and 51% said baseball is the way to do it.
[ http://www.xneinc.com/investor_relations.htm?b=1970&1=1 ]
FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the sustainability of recent growth rates in the Sports and Entertainment industry; the positioning of XnE in the market; ability to integrate acquired companies and technology; ability to retain key employees; ability to successfully combine product offerings and customer acceptance of combined products; general market conditions, fluctuations in currency exchange rates, changes to operating systems and product strategy by vendors of operating systems; and whether XnE can successfully gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release.
