Industry Facts - EVSP.PK
 
 
 
Industry Resources
Investor Kit or Additional Information
Industry Concerns
Health Facts
Competitors
Competitive Positioning
ESP Marketing
Safe Harbor
Mortgage Bankers Association
EPA Mold Resources
EPA Mold Course
Centers for Disease Control and Prevention
OSHA
Canada Mortgage and Housing Corporation

 
Cohen Independent Research Group releases Analyst Report of ESP (Full Version of Report)
 
Based on the 2000 census and information from National Association of Home Builders (NAHB):
 
  • There are currently over 100 Million residential properties in the United States

     
  • 20% (20 Million) of all residential properties in the US are valued at over $500,000

         

    Industry Concerns

     
  • The Insurance Industry1 is estimating having to spend over $3 Billion in claims in 2008 due to moisture related issues.

     
  • The Mortgage Banking Industry estimates over $60 Billion worth of buildings go without insurance due to mold/moisture related issues

     
  • The Mortgage Bankers Association2 states” Remediation, the most important step in dealing with a mold or water damage problem is prompt discovery and timely response. An annual moisture inspection would greatly mitigate potential areas of risk by early detection greatly reducing the financial impact.”

       
     

    1 Insurance Information Institute - Mold and Insurance, August 2003 - http://server.iii.org/yy_obj_data/binary/774885_1_0/moldwhitepaper.pdf

     

    2 The Mortgage Bankers Association - White Paper “Mold: Steps Toward Clarity” 2005 - http://www.mortgagebankers.org/cmnewslink/issues/2005/11/10.asp#weekly1

         

    Health Facts

     
  • 1999 The Mayo Clinic3 estimated there were over 40 Million Americans suffering from chronic sinus infections and that 96 percent (38 Million) of these cases were caused by molds.

     
  • This year the Canadian Federal Ministry of Health4 has linked specific health related issue; especially Asthma-related symptoms to be connected to the exposure of molds and also links Mold to ODTS (Organic Dust Toxic Syndrome).

     
  • The CDC5 suggests people should take routine measures to prevent mold growth in the home and in commercial structures, usually by stopping the accumulation of moisture.

     
  • The common health concerns from molds include hay fever-like symptoms, the CDC reports. Certain individuals with chronic respiratory disease may experience difficulty breathing. Individuals with immune suppression may be at increased risk for infection from molds. Anyone with these conditions should consult a qualified medical clinician.

     
  • World Health Organization links Asthma and Infections to “Indoor Air Quality” – MOLD

     
  • World Health Organization publishes Guidelines for Indoor Air Quality

       
     

    3 The Mayo Clinic - Dr. David Sherris in September 1999 - http://www.sciencedaily.com/releases/1999/09/990910080344.htm

     

    4 Health Canada - Moulds, Residential Indoor Air Quality, March 2007 and INSPQ-Health Risks Associated with the Indoor Presence of Moulds. - http://www.hc-sc.gc.ca/ewh-semt/pubs/air/mould-moisissure_e.html

     

    5 The CDC - http://www.cdc.gov/health/mold.html

         

    Competitors

     
  • Presently the 38,000 inspectors compete to supply services to those homes involved in transaction process, representing only 4 to 5 million homes annually or about 3.5% of all housing stock in the country. The CEHI marketing program is turning every household in America, all 120 million, into its market by making allergen screening, mold testing, energy inspections and moisture management inspections affordable for the average homeowner.

         

    Competitive Positioning

     
  • Standardized, Proprietary & Scalable Services:

    Consistent with the market positioning established in ESP’s initial White Paper and subsequently amended in November 2007; ESP has developed a Program that consists of a suite of services when used together comprise “The Industry’s Best in Class Inspection”. 

    The branding of this Program is ESP’s Certified Environmental Home Inspector (“CEHI”) and will be operated under the Environmental Safeguard Professionals Business Unit.  

    The CEHI Program represents the keystone for environmental services supporting the residential real-estate mortgage, banking and insurance industries in their ability to manage losses through moisture related claims.  

    This Program also will play a significant role in managing the health and indoor air quality of the environments where people work and live. 

    The CEHI Program is all about risk management for both the individual and the industry stakeholders. It is a significant tool to assess the health the individual’s environment; For the Industry, it provides an easily understood, standardized way of assessing the risks of their policies, regardless of location. 

    ESP’s Anchor Services

           CEHI Certification

           Certified Moisture Inspection (CMI)

           Annual Mold and Moisture Management Program (MMM)

           New Builder Moisture Management Program (NBMM)

           Energy Inspections

           Allergen Screening

           Radon

           Abridged Phase I Environmental Reports

    Key Competitive Advantages  

    Key Internal Program Features

           Standardized Training

           Standardized Certification Process

           Standardized Inspection & Report Process

           Standardized Result Analysis

         Proprietary dispatch process

         Scripted needs assessment

         Standardized rate card

         Database driven trends analysis

         Scalable CEHI support systems

    ESP has developed a combination of standardized proprietary processes for each aspect of the client account from initial call, to the dispatch, through completion of every inspection. 

    In an effort to ensure profitability, the Company has standardized each of its processes and has documented a standardized training program, which all employees/contractors must pass. New CEHI’s are required to learn the Company’s processes, while developing working relationships with administrative personal at HQ under simulated, low-stress conditions. Teamwork is built by fostering an understanding of all aspects of the business.

    Standardized processes and training create a community among all Company team members, ensuring dedication to common goals of high quality and efficiency

     Market Focus (Diversified across Three Customer Segments):

     1. Residential: The residential market is the target market, and the largest and most profitable for ESP. It represents homeowners contracting for inspections and demonstrates high same-day close rates.

    2. Multi-Unit: This market represents condominium homeowner associations (HOAs) contracting for maintenance services.

    3. Commercial: In this market segment, service calls are used to create a maintenance budget. These are larger contracts and have longer sales cycles.

     Diversification over several market segments stabilizes utilization levels during lulls in the target market.

    Attractive Cash Flow & Less than a 30-day collection cycle

    The ESP business has exceptional financial characteristics. ESP competes in a massive market and has already proven the viability of its business model, demonstrating the effectiveness of the independent contractor model, on-line management, and a centralized call center. The Business has outstanding margins, an extremely attractive cash collection cycle.

     Additional Potential Revenue Steams

    ESP has identified complimentary revenue streams that would further support the success of our business model. Given the Company’s extensive client database, its long-term client relationships and its business relationship with a client’s most valued asset their home, ESP Management believes in building a powerful asset through our inspection reporting database:

            For each house or building on an Annual Mold and Moisture Management (MMM) Program, there will be a history of inspections, remediation, repairs and maintenance.

            This information could be highly valuable to Mortgage and Insurance Underwriters, since it could mitigate their risk.

    The current sub-prime crisis provides another realistic avenue for revenue for ESP. City & Local governments are beginning to enforce by-laws on the holders of repossessed real estate. This quite simply means the maintenance of the property is now the obligation of the entity who has repossessed it. ESP could adapt and repackage its core services into an inspection program for the financial institutions to assist in ensuring the value of these properties.

    ESP Marketing

     
  • ESP is targeting top 50 cities in the US that represent over 50 Million homeowners

     
  • ESP will reach 40 Million Americans with respiratory complications

     
  • Clearvision launches national email & phone campaign to reach $50 Million households

     
  • Goal is to capture 5% of the residential property homeowners (1 - 3 Million) by providing a recurring annual environmental inspection (MMM) for the amount of $ 250.00 per year.

         

    Investor Kit or Additional Information

    Contact Edward Torres at ESP’s head office:

    Environmental Service Professionals, Inc.
    810 N. Farrell Dr.
    Palm Springs, California 92262

    Telephone: 760.327.5284
    Facsimile: 760.327.5630
    Email: info@evsp.com

    Symbol: EVSP.PK
    Web Site: EVSP.COM

     

    Safe Harbor

    Statements in this WEB Site may constitute forward-looking statements and are subject to numerous risks and uncertainties, including, but not limited to, a lack of adequate capital to enable the Company to execute its business plan or make important business acquisitions in order to grow; the failure to complete successfully the development of new or enhanced products and services; the lack of market demand for any new or enhanced products and services the Company may develop; any actions by the Company or its partners that may be adverse to the Company; the success of competitive products and services; other economic factors affecting the Company and its markets; seasonal changes; and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. Actual results may differ materially from those expressed in this press release. The Company disclaims any obligation to update any statements in this press release.