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the U.S. and our transportation markets under the gun Gabriel Technologies has developed
products to make sure that the loads they are hauling are secured
Auto and Truck Parts
Gabriel Technologies Corp.
4538 S. 140th Street
Omaha, NE 68137
Chief Executive Officer
Chief Financial Officer
Interview conducted by:
Lynn Fosse, Senior Editor
March 24, 2005
Keith Feilmeier, CEO/President
Feilmeier is responsible for the overall direction and management of company strategy.
Prior to founding Gabriel Technologies, LLC, Feilmeier was one of the original founders
and President of Gabriel Technologies Inc, a Delaware corporation.
Feilmeier has over 30 years of senior level
experience in start-ups and turn-around management. Feilmeier recently served as
director of sales for the Midwest Region of ADT. From 1997 1999 Feilmeier was
VP of ISecureTrac. Feilmeier was also Owner/EVP of then start-up PSI and was able to
demonstrate under his leadership an increase of sales from $1 million annually to $30
million in just two years. PSI was eventually sold to Pitteny Bowes for $135
Prior to his PSI endeavor, Feilmeier was Owner/EVP
for Electronic Media One, an outdoor advertising company
from initial start-up to
year two the company had annual revenues of $5 million. Electronic Media One was
sold to Pioneer Corporation, a division of the Omaha World Herald and the McCarthy Group
for $7.5 million.
Maurice Shanley, CFO
Shanley oversees all financial reporting and operations of the company. Shanley
brings critical financial, budget and cost control skills to the Gabriel team and
Shanley is a certified CPA and an experienced
professional with 28 years experience in a wide variety of business disciplines. He
received his BS degree from the University of Nebraska at Omaha and is a member of the
Nebraska Society of CPAs and the American Institute of CPAs.
After several years in public accounting he worked in
a variety of companies in positions such as CFO, VP Finance and as General Manager.
His broad background in financial matters and corporate management has given him a
unique perspective in problem solving and strategic planning. His extensive
experience with companies in and around real estate, construction, etc. has given him a
unique blend of analytical abilities, problem solving, project and program management
Gabriel Technologies of Omaha, Neb, develops proprietary technology for, and manufactures
and sells, a series of physical locking systems for the transportation/shipping industry
collectively known as the WAR-LOK Security System. Security within the
transportation/shipping industry has evolved substantially in recent years due to the
increased risks in theft and terrorism. In the United States alone cargo theft accumulates
for $15 billion in annual losses.
With the implementation of our award winning physical security product line, the WAR-LOK,
Gabriel Technologies now provides the transportation/shipping industry cost efficient
security measures to prevent theft and related security issues which affect our nation and
world economies. Homeland security is of our utmost priority and we are poised with
a proven product line to help deter terrorist who try and disrupt our nations flow
Mr. Feilmeier, you recently started trading on OTCBB, how will that change things for
Mr. Feilmeier: "It is exciting for us. Just the fact
that we have moved from the Pink Sheet to the OTCBB at least indicates that we are
compliant across the board. More importantly, as investors look at us, the OTCBB adds
value to what we are doing. Our goal is not only stop there but to make an application to
AMEX, which we plan on doing in the near future."
What does Gabriel Technologies do?
Mr. Feilmeier: "Gabriel Technologies is a homeland
security based company. The primary business is to secure the transportation, rail,
trucking, shipping, air cargo, and container movement of goods in and out of this country
and through this country, which is what we have done for the last two-and-a-half years.
Our company is a start-up company that has been in business for a little over three years.
We have spent the first two-and-a-half years in research and development and developing
what we call our tier-one product line, the WAR-LOK, or physical security locks for
those different transportation markets. We have developed full lines of tier-one products
that go across the board and adapt to most types of cargo containers that are used in the
shipping of products around the world."
What is being done now and what does Gabriel have that is different?
Mr. Feilmeier: "From a security standpoint, most freight
and goods have been shipped in un-locked containers, or trucks. Most have been identified
with what we call the indicative seal, which is purely a seal that provides
chain-of-custody and no or minimal security that could be cut with a bolt cuter or
scissors. Our product line provides real-time security and deals with barrier locks and
boxes that cover the hasp of trailers and makes it very difficult to penetrate those
containers on trucks or air cargo containers."
You have a release out today that is certainly quite interesting, will you tell s about
Mr. Feilmeier: "We had a couple of releases in the last
two weeks. One deals with the Lloyds of London insurance coverage. What we did was put a
co-brand together with Lloyds to insure our product line, meaning that if our product did
not hold up, did not accomplish what we said it would, that we had an insurance policy to
back it. The interesting thing is what we did with this press release today with OOIDA
(Owner-Operator Independent Drivers Association) and OOSI, which is their insurance side,
is that we took that Lloyds of London insurance coverage and we put it into the
marketplace with OOIDA. OOIDA does a lot of things for their drivers. One of the things
they do is provide insurance coverage for them. What OOIDA did with the Lloyds of
London program is that they were able to pass on to the independent operators a ten
percent discount across the board on their cargo and physical damage insurance programs.
This allowed the driver to purchase our kit and still in year one, come out $150-$180
dollars ahead of the game and then every year thereafter, have a ten percent discount on
their package. It is exciting. OOIDA has 128,000 members and probably, approximately a
little over 50% of those today, are insured under their program. It is a very exciting
program for us, not only to put those current drivers on our rollout system, but OOIDA
will use it to grow their entire program. It is exiting for them and to us."
In what other ways do you reach your potential customers?
Mr. Feilmeier: "We moved six months ago into the market
place with our product. Our strategy has changed a bit. We did some direct sales but our
business model indicated that there were too many customers out there that had these
channels in-place that basically distributed to every customer base that we would be going
after. What we did, is we have been putting distribution agreements together with major
companies throughout the world and in the near future you are going to see press releases
dealing with that side of it."
Tell us about the 2004 Cargo-Security Councils most innovative award.
Mr. Feilmeier: "I think it is very important. Our
philosophy has been to work with the industry in determining the need out there. We have
our engineering staff on-board and our product line has been developed through that
partnership with that trucking industry, the rail industry, and the air cargo industry. We
have worked hand-in-hand to develop our locking devices through those people."
Are you focusing equally on the various forms of transportation or are you hitting one
area at first?
Mr. Feilmeier: "Our focus is on the full transportation
market from the rail side because of the container market, to the trucking side, which
moves products across this country. The distribution that we are putting in-place covers
all aspects of it, not only in the states here but internationally."
How many people are using your products today?
Mr. Feilmeier: "Our products cover a lot of people. The
major railroads in this country are utilizing our product and that is growing on a daily
basis. I think that is going to become a significant program over the next six months with
the rail side. Many of our rail products were developed utilizing the industry. Union
Pacific Railroad Company spent a lot of time and effort in developing, testing and working
with us on products that they knew would be effective and thus far, a product that has
proven to be very effective in that market. The same with the trucking side; we worked
with a major trucking company called Landstar out of Jacksonville, Florida. Landstar was
very instrumental in helping us develop our entire trucking line."
Is there a need to connect with the government in terms of security?
Mr. Feilmeier: "We have been talking about the tier-one
product line and that is about basic security but we are not just about that, we are about
technology too. In the coming months, there will be releases out there dealing with some
major technology and developments that we have been working on for the last seven or eight
months utilizing our tier-one product and integrating GPS and other RFID tags within our
barrier locks. The government, customs and different people like that; our tier-one
product lines are in-front of those people. We are excited about the response we are
seeing from those people but more importantly, I think the government will play a bigger
role as we put out our technology products, those products will be on the market
What does Gabriel know about this industry that maybe others do not?
Mr. Feilmeier: "Our philosophy to develop product lines
based on industry needs and based upon partnerships in the industry will be a key in the
future to our success. This is because those people are not taking a product that we
dreamt up, they are taking a product that we partnered in and spent months in terms of
developing and making sure that these products did what we said they would do. We used the
industry and their transportation corridors and highways to test these products. The
products have been very successful in detouring theft and securing loads. Our partnerships
are what really separate us and our products out. The products do not go to market until
they have been thoroughly tested in the different lanes in the transportation industry.
That is what makes us different. As we go forward, having established ourselves in what I
call our tier-one product line, we are doing the same thing in developing our technology
and our different products we will be utilizing in the different industries with the
partners in that industry. We are confident that we are going to be successful as we
implement these programs."
You talked about worldwide earlier, are you focusing on the U.S. now, and where does the
global picture come into view for you?
Mr. Feilmeier: "Initially we were focusing on North
America. As we are out there looking for partners to distribute internationally, we have
partnerships that we have put in-place that we will be doing press releases on in the next
few months that deal with international distribution. Internationally we have a bigger
problem than we do in America; as we deal with national security and things like that, and
from a theft standpoint alone, it is even a bigger problem than in the US. It is a huge
market that we will be focusing on as we grow."
All of this growth and development tends to be expensive. Mr. Shanley, will you tell us
about the financial status of Gabriel?
Mr. Shanley: "We started two years ago and transitioned;
we were focusing on R&D efforts. We have now moved to the public venue where we are
now transitioned from an R&D company to a company that is providing services and real
products. Our financial requirements are now on marketing efforts and financing the
business growth. Inventory and receivables are quite important to the growth of the
company, so a lot of the things that we are looking at in the financial markets have to do
with working capital and near term growth."
How are you positioned right now?
Mr. Shanley: "We had conversations with several investment funds and moved from the
Pink Sheet to the bulletin board and that has expanded our opportunity for them to invest
with us, because it gives us some credibility. We have positioned ourselves to have
liquidity and market value so that we can move to AMEX."
Feilmeier: "I think one of the important things is that we have come through
the last two-and-a-half years with the support of private investors. Our company has no
debt and our revenues are going to increase significantly over the next twelve months. We
think we are in position to utilize the equity markets out there and most have moved into
the OTCBB and then onward to the AMEX, will make that job easier. We are a homeland
security company and everything we are doing in terms of development is around that theme
and is around that purpose. That in itself makes us an exciting company in the market
place because of that whole issue. The good news is we are ahead of the curve because we
have been developing our product line as I have indicated over the last three years and
there are not a lot of companies out there; you would be pressed to find any that provide
the type of security that we do from a tier-one or physical security basis. You will see
more and more as we deal in the technology side. Not only will we deal in the technology
side with those technologies whether it be e-tags or GPS products, but for the fact that
we will integrate those products into tier-one product side, which is going to make us
even more exciting. Most of our tier-one products are patented so we will have some
exclusive products out in the market place for the different transportation companies to
How do you differentiate yourselves in your particular niche?
Mr. Feilmeier: "We are out there everyday interviewing
with different funds and market makers and different firms that deal in that market area;
that is from the financial side. From the product side, we are unique; we are not talking
about things that we are going to do, we are talking about products that we have in-place
that have been utilized, and have proven success records. We are going to take those
successes and integrate technology. It makes it a very exciting company."
Shanley: "What we've done is we have partnered up with internationally
recognizable names in distribution. We have partnered with railroad and construction
companies. They are in the process of winding up the results of their studies and the
success of the different products and we are going to be working with them to do joint
press releases. Part of our short-term market strategy is to use press releases and public
relations firms to get our message out communicating the success we have had. On the
homeland security side, we are involved with some tests with some other large government
contractors and assuming that those tests work satisfactorily, they've agreed to
participate with us in press releases about their successes and potential product uses and
applications. So most of what we do is partner up with these guys, then we agree that they
are kind of a BETA test site or product development site, so that we can improve our
product offering. We also ask them to participate in press releases to create the
awareness through trade publications and news wires."
In closing, what should investors remember most about Gabriel and what should they know
that maybe they did not realize when they first looked at the company?
Mr. Shanley: "Execution! I think if you look at the key
studies started three years ago and the patented products developed on the lock side, we
got the products into the right hands for testing and moved on a timely basis to having
successful tier-one sales in 2005. On the technology side, we have worldwide licenses with
Snap-Trak that we acquired in June of this year. We are in the phase now where we are
going to major players in the industry to do BETA testing and customer application and we
expect to the market in May. That would be taking over content and bringing it to market
in less than a year and the feed back that we've been getting over the past thirty days is
that people feel that it is better than anything on the market and the price seems to be
Feilmeier: "It is about people. We have put together an infrastructure, our
staff, which is dedicated to the success of this company and you have that type of
dedication form everybody that leads to success. We are going to be an exciting company
just because of the industry that we are in. Homeland security, that whole idea and
concept is going nowhere. This country and our transportation markets are going to be
under the gun for a long time to make sure that the loads they are hauling are secured. We
are a big step ahead of everybody, whether they want to deal with our basic security locks
or whether they want to deal with technology. We are excited about where we are today and
we are going to work our tails off here to drive it forward and make our investors happy
they are with us."
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