Best letter to shareholders ever:
https://www.sec.gov/Archives/edgar/data ... 5-0001.txtMonarch Services, Inc. For More Information Contact:
Baltimore, MD 21214 A. Eric Dott
410-254-9200
November 3, 2000
PRESS RELEASE
SHOW ME THE MONEY
or
GIVE ME THE MONEY
What are you going to do with the money??
Scott Fitzgerald observed:
"The rich are different from us."
Ernest Hemingway shot back:
"Yes, they have more money."
We are now going to tell you what we are going to do with the money.
The money is all in CASH resting very nicely in CDs. It is all there...all the
money we received from HASBRO and much, much more. Any fool can spend money or
squander it on stupid acquisitions or mergers. We are constantly being pestered
to buy other magazines. None look worthwhile. Many corporations are brought to
our attention, but none look as attractive as what we have on our plate and
being prepared in the kitchen.
Two years ago, we completed the divestiture of the game company to Hasbro. This
took months of work but now it is behind us. Quite often these turn into bloody
messes. Our sale went like clockwork. Hasbro and Monarch have
a fantastic relationship that can only help both companies in the future.
Hasbro advertises in Girls' Life. Just call Tom Dusenberry, President of Hasbro
Interactive and ask him what he thinks of Monarch Services or Eric
or Jack Dott. (Mr. Dusenberry's number is 978-921-3701.)
We also sold our entire printing and envelope operation at a profit.
<PAGE>
Now everyone's mind is as clear as a bell and we can focus our energy on
the future.
The future is now. We will be launching our Boys/Men's magazine in May 2001.
Our assistant editor came from Scholastic Magazine. We have the first and last
employee who worked at National Observer waiting to come on board. We have
hired the Art and Creative Director of Johns Hopkins Magazine. We have
seventeen prospective Senior Editors to interview once more to make a final
decision.
Money is the lifeblood of any business. Without money, you die. Girls' Life is a
very profitable magazine.
When we started Girls' Life seven (7) years ago, our Board of Directors said NO
to the idea of a magazine for Tween Girls. The category didn't ever exist.
Eric and Jack Dott who made the proposal said they would finance the magazine
themselves. The board did a complete reversal and gave permission to proceed
with Girls' Life. Reg Murphy, former publisher of the Atlanta Journal and the
Sun paper in Baltimore and a board member at the time and
now second in command at National Geographic, and second in command at the PGA
in Atlanta, GA, told the board we would bankrupt the company. We
didn't know beans about publishing a national magazine, etc., etc. Just
look at us now! Thousands of girls, schools, libraries and the Girls Scouts
LOVE us - we can do no wrong.
The new magazine will be successful in spite of the fact that it will NOT
contain any SEX. Some of the subjects in the magazine will be "Tell It To The
Judge" and interesting law cases. We have the good fortune to have
Judge John Fader and Judge Larry Daniels of the Circuit Court of Baltimore
County writing for us.
Then there is "You Auto Know," which will be authored by a well-reputed
automobile expert. We have written several game reviews and Tom Dusenberry of
Hasbro tells us they are excellent. There will be a feature called "A Pair of
Docs," husband and wife medical doctors.
There is much, much more to tell, but we don't want to tell all the other
publishers what we are doing.
Some irritated stockholders have criticized the board for receiving a bonus of
$25,000. Please be aware your board of directors never received a penny for
serving on the board or gratuity of any kind for their service over the years.
For the long hours they toiled on the sale of the game division to Hasbro, the
board believed it appropriate to give the bonus. We do not know of any board
members who work for free. We also have never carried any D
and O insurance (directors and officers). We know our board of directors and
have full faith in their integrity and honesty. As for the free options " they
are not free " they must purchase them. Sure they will make money, but isn't
that the reason you purchased your stock? If we thought that Monarch Services
was worth only $8 or $9 a share, we wouldn't be writing this release.
<PAGE>
We know the stock is worth much, much more and that is why we are asking you to
vote YES for the proposals presented. If you have already voted NO to any
proposal, please write to the Corporate Secretary (Mr. Steven M. Szekely, at
4517 Harford Road, Baltimore, MD 21214) and revoke any previous proxy.
I have on my desk over 25 reports of companies whose stock was $85 to $8 earlier
this year. Would you believe they are now selling for $1 to $00? They ran out
of cash! They spent it frivolously... heck, we don't even have rugs on the
floor! We didn't buy BMWs, carpet, Herman Miller furniture or hire beautiful
secretaries who couldn't use computers.
This won't happen to your company because we spend every dollar like it's our
own. Remember, money is the lifeblood of any company. We have the money and
intend to use it wisely.
Thank you!!
Please note: Why settle for a sandwich when you can have a banquet?
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