QUIKIEHOME INDUSTRIES INC.
Forward-Looking Statements The information on this website is presented for historical purposes only. All items were released or recorded as of the date listed, which in some cases occurred substantially in the past, and reflected management views as of the date of the item. Certain matters discussed in these items may include “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: changes in general economic, real estate, construction and other business conditions; changes in interest rates, the availability of mortgage financing or increases in the costs of owning a home; governmental regulations and environmental matters; the Company’s substantial debt; competitive conditions within the industry; the availability of capital to the Company on favorable terms; the Company’s ability to successfully effect its growth strategies; and warranty and product liability claims. Additional information about issues that could lead to material changes in performance is contained in any documents, notices, or filings and most recent quarterly or other reports of QUIKIEHOME INDUSTRIES, Inc., or any associated private or public entities in consort with QUIKIEHOME INDUSTRIES, Inc. or information provided to or through persons or entities associated with QUIKIEHOME INDUSTRIES, Inc., or any allied party or entity which are generally made available or filed with the Securities and Exchange Commission. QUIKIEHOME INDUSTRIES, Inc. and all allied parties make no commitment, and disclaims any duty, to update any forward-looking statement to reflect future events or changes in expectations or the advantages or disadvantages of considering participation in any manner
PART I ITEM 1. BUSINESS QUIKIEHOME INDUSTRIES, Inc. is a developer of technology to upgrade the residential and commercial construction process through automated production methods. We construct and sell home and commercial structures through the application of robotics contained in a portable factory environment which combines structural materials at the construction site. Called the QUIKIEHOME-MAKER, an intermodal platform which can travel by rail or by road, it produces complete structural wall and roof sections produced from aromatic copolymer, steel supports and steel mesh with unique insulating and strength characteristics. Faced internally and externally with concrete aggregate, the wall and roof become a unified structural shell. This process delivers the complete structural shell in a time period far shorter than by “stick built” methods and with consistency only possible by automated equipment operated to deliver extreme tolerances. QUIKIEHOME INDUSTRIES, Inc. acts in consort with a non trading public entity which has invested available capital into the development of the QUIKIEHOME-MAKER to establish the ability to enter the homebuilding markets and into start-up operations in new markets. Additionally, our position as a potential resource for replacement on flood and other damaged homes due to Superstorm Sandy and a report produced by a consultant to FEMA as part of a MATS group analysis of our pre-production models in post Hurricane Ike damage assessments in Texas has strengthened our position in making our technology available to existing markets and expanded our geographic presence and potential product offerings in other markets worldwide. Our construction delivery time of less than 14 days to complete a 1500 square foot residential structural shell takes a time period vastly shorter then “stick built” which ranges up to 180 days and requires thereby a vastly shorter financial burden on ownership for either personal; use or as an investment for rental purposes. Both of the pre-production models built in Texas as rental properties were immediately rented and Provided owners with immediate mortgage financing services with title insurance agents providing title insurance policies, examination and closing services. QUIKIEHOME INDUSTRIES Inc. projects that homebuilding operations for either individual owners or investors in rental properties will generate most of the revenues from the construction of the structural shells which owners or subcontractors will transition to completed homes with options of wood flooring, carpet, paneling, and exterior surface additions of brick, stone, or other fascia. The design of residential structures are projected to include building traditional single-family detached homes, however the technology which produces the single-family home structural aspects can be employed to also build attached homes, such as town homes, duplexes, triplexes and condominiums. Our financial services segment is also projected to generate revenues from originating and selling mortgages and collecting fees for title insurance agency and closing services. Our public relationship We have entered into an agreement to allow a partial purchase option of QUIKIEHOME INDUSTRIES, Inc. by a public non trading entity. Any details of the potential effect of such beneficial ownership would be expected to be made available, as soon as reasonably practicable in annual and quarterly reports on Form 10-K and 10-Q (including related filings in XBRL format), current reports on Form 8-K, beneficial ownership reports on Forms 3, 4, and 5, proxy statements and amendments to such reports. Operating Strategy and Structure By developing the ability to produce the structural components which become a residential or commercial structure we have achieved what we project to be a significant growth ability both as a direct seller of such completed structural shells and profitability through an operating strategy focused on applying the technology in capturing a substantial market share through alliances with builders that can utilize our ability to shorten the financial burden otherwise shouldered by the time “stick built” consumes in the normal construction process.. To execute our strategy and apply it to penetration of the marketplace, we have entered into a mutual profit agreement with a public entity that will not require our investment of capital to develop awareness within the homebuilding markets, our opportunistic entry into new geographic markets and acquired relationships with homebuilding companies for our services.
During the industry downturn over the last several years, many builders have struggled to manage their business and to generate a significant amount of funds from operations. With new home demand at low historical levels, QUIKIEHOME INDUSTRIES Inc. anticipated an improvement in demand that would enable utilization of the technology and positively impact profitability. With the advent of post-Superstorm Sandy insurance and other repayment looming and our confidence in the new and replacement home market, we see encouraging signs in the economy and statements by the Administration. We have begun discussions with holders of capital investments in land, lot and potential home building to establish ventures which will expand our operations, while fine-tuning control of our QUIKIEHOPME-MAKER construction costs. Within the scope of the recent improvement in economic conditions, it is expected that the expected “rebound” in construction will continue to be uneven across our markets in the near term but will offer the potential for substantial profitable operations as we employ our technology. Operating Division Responsibilities QUIKIEHOME INDUSTRIES Inc. projects that operations will encompass both ventures with others holding land for development and the purchase of land to produce salable structures. The initial Texas pre-production models were constructed on purchased land. It is anticipated that on a case by case basis the Company will be responsible for: • Site selection, which involves — A feasibility study; — Soil and environmental reviews; — Review of existing zoning and other governmental requirements; and — Review of the need for and extent of offsite work required to meet local building codes; • Negotiating lot option, land acquisition and related contracts; • Obtaining all necessary land development and home construction approvals; • Selecting land development subcontractors and ensuring their work meets our contracted scopes; • Selecting building plans and architectural schemes; • Selecting construction subcontractors and ensuring their work meets our contracted scopes; • Planning and managing homebuilding schedules; • Developing and implementing local marketing plans; • Determining the pricing for each house plan in a given community; and • Coordinating post-closing customer service and warranty repairs. The Company projects that it will provide centralized functions for control of venture activities it will enter into with existing land holders in the areas of: • Financing; • Cash management; • Risk and litigation management; • Allocation of capital; • Issuance and monitoring of inventory investment guidelines. • Monitoring and analysis of margins, expenses, profitability and inventory levels; • Environmental assessments of land and lot acquisitions; • Accounting and management reporting; • Internal audit; • Information technology systems; • Administration of payroll and employee benefits; • Negotiation of national purchasing contracts; • Administration of customer satisfaction surveys and reporting of results; and • Approval of major personnel decisions and management incentive compensation plans.
SINGLE FAMILY PRE-PRODUCTION STRUCTURES
OPERATING DATA GROUND LEVEL STRUCTURE Construction Cost of Structure Revenues: Home Building Financial Services Gross Profit Income (before taxes) Home Building Financial Services Income Tax Net Income Total Assets Notes Payable Total Equity
OPERATING DATA COLUMN PLATFORM STRUCTURE Construction Cost of Structure Revenues: Home Building Financial Services Gross Profit Income (before taxes) Home Building Financial Services Income Tax Net Income Total Assets Notes Payable Total Equity
MULTIPLE FAMILY CARRIAGE HOUSE STRUCTURES
OPERATING DATA GROUND LEVEL STRUCTURE Construction Cost of Structure Revenues: Home Building Financial Services Gross Profit Income (before taxes) Home Building Financial Services Income Tax Net Income Total Assets Notes Payable Total Equity
Cost Management QUIKIEHOME INDUSTRIES Inc. is in a unique position due to the clearly advantageous ability to predict the exact cost, specifications, and predictability of time necessary to produce its product due to the production by the QUIKIEHOME-MAKER. The Company can easily control overhead costs for producing its products since the robotics perform the assembly tasks and the materials are fed to the system and utilized in a predicable amount by centralized controls. With the assembly to the foundation achieved by unskilled labor versus the skilled labor required to produce “stick built” we project a continuing ability to meet budget guidelines. With our administrative and accounting functions monitored internally, our ability to identify additional efficiencies and savings opportunities in our operations enables support for our profitability expectations. Markets We project conduct of our homebuilding and commercial operations to develop in the geographic regions, states and markets typical of the construction industry. Since our primary operational activity is projected to be in consort with land holders and builders or developers, it is expected that a fleet of WUIKIEHOME-MAKER units will be fielded to meet logistical needs. Construction Factors All of construction responds to specific factors, including among others: • Economic conditions; • Employment levels and job growth; • Income level of potential homebuyers; • Local housing affordability and typical mortgage products utilized; • Market for homes at our targeted price points; • Availability of land and lots on acceptable terms; • Land entitlement and development processes; • New and secondary home sales activity; • Competition; and • Prevailing housing products, features, cost and pricing. Land Policies We acquire land after we have completed due diligence and generally after we have obtained the rights (known as entitlements) to begin development or construction work. This applies to both individual land purchases for a single or multiple family projects and a land purchase resulting in an acceptable number of residential lots. Either for our own construction purposes or for participation in a venture with a land holder we will, among other things, completes a feasibility study, which includes soil tests, independent environmental studies and other engineering work. We also evaluate the status of necessary zoning and other governmental entitlements required to develop and use the property for home construction. In the event we locate and purchase land or the rights to land or enter into land/lot option contracts we project the need to reduce our risk beyond that associated with the construction process we provide. While we may be a party to the construction process converting the land into a structure, we have the expectation to limit our risk associated with the land ownership. Design and Construction Our home designs are selected to appeal to the tastes and preferences of local homebuyers in each community. If a single family structure an existing plan provided by the land owner may dictate the design. On land we have acquired, we may provide a selection of designs we believe suitable. Although we create and offer certain single family and multiple family designs our primary activity is projected to remain as the delivery of the automated wall and roof components of the structure and certain attachments or embellishments to the surfaces are added solely for cosmetic results QUIKIEHOME INDUSTRIES Inc. has the expectation that optional interior and exterior features to allow homebuyers to enhance the basic home shell design will be those of the homeowner or applied by subcontractors.
The Company recognizes that certain purchasers of the Company technology may seek to allow us to generate additional revenues from optional interior and exterior features and such decisions will address our customers’
expectations for their affordability and our profitability. Our expectation is that substantially all construction work after production of wall and roof components by the QUIKIEHOME-MAKER is to be performed by self employed individual subcontractors selected pursuant to a contract that obligates the subcontractor to complete construction as part of a “crew”. The Company offers the purchaser the ability to employ its own contractors to add optional interior and exterior features after the Company completes the structural shell. As part of the construction process, the Company provides basic training for its unskilled labor in the construction of its structural shell to the foundation and highly trained and experienced construction superintendents to monitor construction, participate in proposed work order specified design and building decisions, coordinate the activities of its subcontractors and suppliers, review the work performed for specific quality expectations and cost controls and monitor compliance with zoning and building codes. In addition, our construction superintendents play a significant role in working with customers by assisting with details related to option selection and potential modification, education during the construction process, and providing any post-closing maintenance needs. Although general construction time using the QUIKIEHOME-MAKER is predictable, it can also depend on the weather, availability of labor, materials and supplies, size of the structure, and other factors. We typically complete the construction of a 1500 square foot residential structure within 14 days; the exact time may depend on other factors as stipulated in contractual documents related to each expected performance. Unlike construction with “stick built” we do not require significant inventories of wood and other construction materials. The QUIKIEHOME-MAKER combines the raw construction materials used in our operations and these are readily available from numerous sources with which we have contracts for delivery. As demand and activity began to increase our expectation is that the choice of reliable sources will limit all but temporary minor shortages and delays of materials which will not result in a material effect. Marketing and Sales We market and sell our capability to produce through a contract for publicity and public relations placement in the media and through electronic media, including email, social networking sites and our company Internet website, as well as brochures, flyers, newsletters and promotional events. We also use billboards, radio, television and newspaper advertising as necessary in each local market. In the event we elect to promote operations through alliances with commissioned persons or employees and independent real estate brokers they will be clearly stipulated in contractual agreement. Such persons would assist prospective parties by providing them with materials containing floor plans, price information, access to content describing designs, and assisting them with the selection of options and other custom features they may wish the Company to provide or which they would endeavor to provide themselves after the construction of the structural shell. Such personnel would be trained and informed as to the availability of financing, construction schedules, and marketing and advertising plans. Customer Service and Quality Control The Company believes it has a major advantage in quality control due to the repetitive nature of the construction provided by the QUIKIEHOME-MAKER. Supported by a mandate to provide pre-closing quality control inspections and responding to customers’ post-closing needs we provide a prompt and courteous response during and after the construction process. This reduces any potential for post-closing repair costs, enhances our reputation for quality and service and ultimately leads to repeat and referral business from the real estate community and individual owners or developers. The design of the structural aspects of the wall and roof sections and the materials utilized offer specific expectations of life span and capability. We identify all warranty aspects in contractual agreements and provide specific limited warranty for major defects in structural elements, on any major mechanical systems provided as part of the structural shell, and address such limited warranty aspects of other construction components. Any subcontractor who performs an application related to the actual construction of the structural shell also provides us with warranties on workmanship.
Customer Mortgage Financing We have engaged in discussions with various providers of construction financing for our efforts, for construction financing for individual purchasers of our efforts, construction financing with conversion to a mortgage for individual purchasers provide mortgage financing services, and have the expectation of establishing a means of Company operated assistance in the sales transaction by coordinating the mortgage application, mortgage commitment and closing processes to facilitate a timely and efficient
experience for our buyers. As a means of additional revenue, the Company has the expectation of originating mortgage loans for a portion of our purchasers either as part of the sales process or in consort with others. In most cases we have the expectation that such loan products would have the ability to be sold to third-party purchasers shortly after origination with limited recourse provisions. The Company has entered into discussions with a variety of lenders including factors and mortgage lenders that make available to buyers a range of mortgage financing programs. Title Services and Financing The Company has the expectation of either serving as a title insurance agent in selected markets by providing title insurance policies, examination and closing services primarily to the purchasers of the structures we build and shouldering no underwriting risk associated with these title policies or benefiting from such in consort with others. The Company expects to venture with land owners to enhance our marketing and sales efforts to prospective buyers who are relocating to these markets, as well as to independent brokers, who often represent buyers desiring a short time frame construction result. We determine our speculative homes strategy in each. Our sales contracts require an earnest money deposit which varies in amount based upon the structural design. Additional deposits when the Company is expected to provide options or upgrade features for their structure are stipulated in contracts. Although typical construction contracts may include a financing contingency which permits customers to cancel and receive a refund of their deposit if they cannot obtain mortgage financing at prevailing or specified interest rates within a specified period, the Company does not anticipate such content as it performs its construction on behalf of the owner or developer. Our contracts may include other contingencies. Competition The construction industry is highly competitive. We compete with numerous other national, regional and local providers of construction services and those with long-standing experience in raw materials, skilled labor, employees, management talent and financing. The Company structural product also has to compete on the basis of quality, price, and design, in addition to being unlike more conventional â€œstick builtâ€? construction methods and other construction methods using produced or purchased wall or other sections. The availability of potential financing for buyers and the available mortgages the Company may offer competes with other mortgage lenders, including national, regional and local mortgage bankers and other financial institutions, some of which are subject to fewer governmental regulations or have greater access to capital, different lending criteria and broader product offerings. Governmental Regulation and Environmental Matters The homebuilding industry is subject to extensive and complex regulations. We and the contractors we use must comply with many federal, state and local laws and regulations, including zoning, density and development requirements, building, environmental, advertising, labor and real estate sales rules and regulations and often provide broad discretion. These regulations and requirements affect the development process, as well as building materials to be used, building designs and minimum elevation of properties also require interaction with and potential inspection for viability by local authorities where required, and certain insurance or guarantees provided by the Federal Housing Administration (FHA) and the Department of Veteran Affairs (VA) are subject to inspection by them and may not apply to the Company structural products.
Our construction operations are also subject to an extensive variety of local, state and federal statutes, ordinances, rules and regulations concerning protection of health, safety and the environment. The particular environmental laws for each site vary greatly according to location, environmental condition and the present and former uses of the site and adjoining properties. While we may be providing the construction on behalf of the land owner or in consort with a land owner under a venture agreement, participation in the programs offered by the FHA, VA, Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and the United States Department of Agriculture (USDA) may also require that the Company comply with their regulations or with consumer lending laws and other
regulations governing disclosure requirements, prohibitions against discrimination and real estate settlement procedures. These laws and regulations are likely to subject our operations to examination by the applicable agencies. These risks and uncertainties, together with other factors described elsewhere in this report, have the potential to affect our business, financial condition, results of operations, cash flows, strategies or prospects in a material and adverse manner. The Company is directly involved in the construction industry and is subject to the same constraints and conditions of the economy which affect that industry. The homebuilding industry experienced a significant downturn in recent years. Although industry conditions improved during fiscal 2012, the general U.S. economy remains weak. A subsequent deterioration in industry conditions could adversely affect our business or financial results. The U.S. economy could be negatively impacted in the short-term by potential changes in fiscal, tax and monetary policies currently under consideration by the federal government. Therefore, it remains uncertain whether the building industry conditions will continue to improve, remain stable or deteriorate from current levels. A subsequent deterioration in industry conditions could adversely affect our business or financial results. In addition, • employment levels; • availability of financing for buyers; • interest rates; • consumer confidence; • levels and prices of new construction for sale and alternatives, including foreclosed property, property held for sale by investors and speculators, other existing structures and rental properties; • demographic trends; and • construction demand, together with any other adverse changes in these general and local economic conditions or deterioration in the broader economy could have a negative impact on our business or financial results. While the Company anticipates that its construction process may provide an advantage in dealing with damage to structures caused by weather conditions and natural disasters, such as hurricanes, tornadoes, earthquakes, wildfires, volcanic activity, droughts, and floods, long delays in insurance processing or government funding for replacement or repair can harm our potential business model.
Results Data The Company entered into an agreement with a public non trading entity for use of a technology that produces a structural wall and roof component constructed with an aromatic copolymer central core and steel supports and steel mesh welded on either side. The assembly is performed using robotics in a portable platform called the QUIKIEHOME-MAKER and a concrete aggregate is then applied to the mesh on both the interior and exterior sides to complete the structural component. It is then affixed to a poured foundation and when the roof sections are connected, becomes a unified structure. Conduits for electrical and plumbing are encased in the sections for connection to utility services. The internal copolymer core provides exception insulating ability against heat and cold transfer. The steel and aggregate provides exceptional strength against wind and other forces, fire, water, and insect penetration. Two pre-production structures were built in Texas as rental properties. One at ground level. The other on a proprietary column system. Both have been fully rented and have derived positive tenant commentary in particular
for their utility cost efficiency. Despite the extensive damage caused by Hurricane Ike and the substantial damage to surrounding structures, these structures were unaffected. A report by a paid FEMA consultant as part of a post-damage team study lauded the construction capability and the insulating aspects. The Company now intends to offer the automated construction capability to potential and actual owners of land, and to developers on a sale or joint venture basis. Contacts: COMPANY: EMAIL: INTERNET: MAIL: MATERIALS TO REVIEW: YOUTUBE:
QUIKIEHOME INDUSTRIES, INC. QUIKIEHOME@GMAIL.COM WWW.QUIKIEHOME.COM Postal Drop 779, Plymouth, Florida 32768-0779 www.issuu.com Place QUIKIEHOME in search bar
Published on Mar 30, 2013