Ensign Services (PINK:ESVC)

Ensign Services Inc. (OTCBB: ESVC) announced that it completed a reverse merger with Tin Nghia Petrol Joint Stock Company in August 2009. Management believes the reverse merger transaction is one of the first successful reverse mergers of a Vietnamese company on the U.S. stock exchanges. The Company intends to complete a name change to Timex Assets and Services

Company Snap Shot: (Reminds us of CBEH in some respect).

• Timex A&S has 28 petrol stations along major routes in Vietnam's Dong Nai province and is one of the key suppliers of gasoline to factories in the region's industrial parks.
  
• Timex A&S is one of the two leading gas retailers in Dong Nai province and has the advantage of owning the land on which its gas stations are operated.
  
• Vietnam is one of Southeast Asia’s fastest growing economies, trailing only China; the country has the second-fastest growing economy with 8-9 percent growth in 2005, 2006 and 2007 and 6.2 percent in 2008.

Expansion Plan Details:

• The Company intends to expand its business through the acquisition and construction of additional gas stations on major national routes and industrial parks.
  
• We intend to expand the gas stations we currently co-own to include convenience stores (sometimes referred to as “c-stores”). Rather than a petrol station that offers a few food items for purchase, management anticipates that the Community Service Centers (“CSC”) will serve to draw local residents to the stations for many reasons beyond filling their gas tanks or buying a few items that they may need in an emergency. We believe that convenience stores in Vietnam will evolve into a unique place where customers can do everything from paying their bills, sending a fax or purchasing phone cards for calls overseas. The goal of the concept is for the stores to not only are residents’ corner stores, but also their post office, bank, home office and much more.
  
• Timex A&S plans to develop a convenience store network of 40 stores over a three-year period. Some of the c-stores will be done by retrofitting existing properties, while the others will involve acquiring additional land adjacent to gas stations. For gas stations with higher traffic flows, a larger c-store will be built to cater for the higher customer flow.

Financial Details:

• In its 2009 10K, for the year ended September 30, 2009, the Company had audited revenues of over $76 million, gross profit of over $3.6 million and net income of over $1.5 million.
  
• First Quarter EPS unimpressive. Dilution may be an issue

Net income decreased from $390,090 for the three months ended December 31, 2008 to $89,517 for the comparable period in 2009, a decrease of $300,573 or 77.1%, due to increases in operating and financial expenses. Starting from 2009, the Company obtained external borrowings to finance its working capital, therefore more financial expenses will be incurred.

Margins Taking a hit due to increasing gasoline prices: The increase was mainly due to an increase in the average price the Company paid to its suppliers for the purchase of gasoline.