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Invest in America's Trains

The only upscale, luxury USA train vacations, with deluxe bedrooms and layovers

Pitch Video
Investor Panel

Highlights

1
We're filling a void; “There's a boom in luxury rail", "Safe vacations, avoiding contagious illness"
2
A growing number of Journeys by Rail throughout the USA and into Canada generate escalating revenue
3
FREE VACATIONS - get cash credits up to 100% of investment to pay for Journeys or other vacations
4
The luxury market is travel's "fastest growing segment" with "great demand for luxury trains"
5
Multiple revenue streams and lucrative pricing support favorable early and growing forecast earnings
6
Amtrak, RCI and seller collaborations enhance demand, sales and income projections
7
FULL REIMBURSEMENT OF INVESTMENT and keep your shares, or SELL STOCK BACK TO ATs at 130% of cost
8
Experts say: "Lots of interest in rail as an ideal post-pandemic travel product"

Our Founder

Journey by Rail development was prompted by (1) a lack of and need for upscale rail vacations, combined with (2) ample identified demand, (3) ATs' unmatched pertinent management abilities, and (4) the opportunity to profitably dominate a segment of the U.S. vacation market.

The only supplier in an essential U.S. travel market - upscale train vacations

EQUITY DILUTION AND RELATED BENEFITS

Our objectives include raising sufficient capital to optimize business growth while minimizing a reduction (dilution) of shareholder ownership percentage and maximizing share values. This crowdfunding offering and the related creation of a pool of investors may become a transitive measure preceding further capitalization to finance accelerated future domestic and foreign growth objectives by appropriate means that could provide for over the counter ("OTC") or other public trading of shares, pursuant to SEC and State regulations. If such related new equity is issued an increase of the total shares outstanding would have a dilutive effect on the ownership percentage of existing shareholders; however, such dilution would be expected to be offset by an increase in share values. 

THE NEED/DEMAND AND OUR RESPONSE

There has been no regular, upscale train vacations and none with en-route layovers in the USA (a void), since Amtrak assumed responsibility for intercity passenger train operations in the 1970s. 

We're filling the void with Journeys by Rail on our luxuriously rebuilt rail cars, pulled by Amtrak trains, regional railroads and exclusive Amtrak or other engines.

Our Journeys fill a worldwide need. "Demand for luxury train vacations exceeds available inventory"; they are for those who are used to finer things in life, and folks that want to treat themselves to very special vacations. The vacation value and experience dwarfs the cost.

Covid-19 is does not present a continuing problem. Journeys by Rail avoid related risks.

INVESTMENT - PREFERRED BENEFITS SYNOPSIS

Investment proceeds will be used to expedite company growth to meet surplus demand.

If you are included in the 1st $50,000 invested in Class B common shares:

  • You only pay $0.60 for each share, which goes up to $0.70 after 83,334 shares are sold, with another share price increase after an additional 285,713 shares are sold.
  • You get cash credits of up to 100% of your investment for use as payment towards a Journey by Rail, or up to 64% as payment for many other vacations.

In addition to favorable projected earnings, as a Class B common shareholder you also:

  •  Receive preferred reimbursement of the invested amount, and you keep your shares.
  • Have the right to sell stock back to ATs at 130% of the purchase price.
  • Get other vacation opportunities.
  • Receive a significant finders fee if you provide referrals that purchase a Journey product; your referrals get preference over travel agent reservation requests.
  • Have preferred rights to liquidation proceeds, in the most improbable event that ATs asset liquidation occurs; your investment is secured by rail car assets.
  • * See 'Funding, Class B Shares with Preferred Benefits' below, for more details.

Initial funding of up to $250,000 will come from the sale of Class B common shares in two segments, $50,000 at $0.60 and $200,000 at $0.70, followed by up to another $750,000 as warranted. Funds will be used to expedite introduction of additional cars and related passenger capacity to meet anticipated growing demand. 

Investors get benefits that are not available anywhere else.

    BEFORE - Nothing                     AFTER America's Trains - Luxurious Journeys by Rail

THE FINEST RAIL CARS, ENGINES

None of the world’s top 25 trains/cars have been in the USA, until now. Our luxurious  cars are designed to be equal or better than the worlds finest.

Up to 38 ATs cars with about 140 deluxe bedrooms having private bathrooms and large beds will enter service over several years, beginning with the Sunflower (cars are named after flowers), a two level four bedroom car with full dining and lounges. The Sunflower has already been mechanically rebuilt and is Amtrak certified. Additional interior enhancements are being finished during the Covid-19 induced service delay, including an ECO friendly waste disposal system and interior modifications.

Amtrak pulls our cars on a regular basis as part of their trains pursuant to a recently updated private rail car movement contract. Cars are also pulled by regional railroads, sometimes by an exclusive Amtrak engine, and by exclusive Class 1 freight railroad engines at such time as related arrangements may be finalized. Higher exclusive engine expenses are in great part offset by elimination of costs for switch engines to move cars to and from parking locations at layovers.

Amtrak's order for replacement cars with enhanced interior designs for commuter services will create an available pool of retired Amtrak certified cars that ATs can convert to luxury vacation rail cars. Circumstances arising out of Covid-19 and revised Amtrak terms for pulling individually owned cars have caused many private owners to stop recreational operation of their cars and to offer them for sale. This enhances availability and reduces prices of ATs cars.     

    ENDLESS ACTIVITIES         Adventurous           Relaxing             Summer             Winter

PRODUCTS, MULTIPLE REVENUE STREAMS

ATs' Journeys by Rail will experience no continuing undesirable affect from and after Covid-19 diminishes (see Covid-19). Scheduled and expanding departure dates will include a growing number of luxurious cars on five to eight night all-inclusive Journey by Rail ("Journey") vacations throughout the USA and into Canada, being sold as (1) individual (single) Journeys, (2) Train'Shares (timeshares) with rights to annual or more frequent Journeys, and (3) fractional interests (shared) ownership in some self sufficient cars.

To support optimum profitability, evolving metrics and circumstances will influence the number of Journey by Rail time periods sold as individual Journeys or Train'Shares. Adequate profits would occur if only one of these products is sold, and if sales are less than half of projections.  

   VISIT - Washington - Atlantic, Pacific, Gulf beaches - New York - Seattle - LOTS MORE

Journey services are meant to redefine upscale vacations by their distinctive luxury, exclusive personalization, impeccable hospitality, unique ambiance, unmatched on board experiences, and rewarding off-car things to do during en-route layovers while passengers live on board luxurious rail cars.

Additional revenue comes from the sale of branded and other gifts items, special entertainment on activity cars, off-car Tracks to Adventure™ tours, personalized on-board services, and management of Train’Share and fractional interest owner associations.

PROVEN BUSINESS MODEL AND STRATEGY

A mixed use business model (two primary products are individual Journey vacations and Train'Shares, plus fractional interests) used and proven by major vacation/timeshare devel0pers (Marriott, Disney, etc) provides synergies that reduce costs, enhance sales and create operating economies. Each of the two primary products can produce acceptable profits alone, even if sales are 50% of projections, and either can take up the slack if the other unexpectedly experiences faltering sales. 

We also use a ‘pull’ inventory growth strategy. Most car costs are delayed until the need for more capacity is ‘pulled’ by demand from advance sales, at which time additional cars are prepared for service, eliminating surplus capacity (inventory). Typical reservations are made from seven months to a year or more before the departure date. It only takes several months to improve a rail car.

Strategies include continuous assessment of business metrics and factors with flexible options to make prudent changes that optimize sales, revenue, net income and that minimize expenses.

NO MEANINGFUL COMPETITION

There are no U.S. train vacations that are equivalent to or competitive with Journeys by Rail.

Foreign luxury trains compete for the same international customers. Over many years, most of their sales have been made by selected travel agencies that are associated with ATs. Therefore, these train vacation agency clients are accessible and provide a notable source of very qualified individual Journey by Rail consumers. ATs' individual Journey fares are profitably lower than fares charged by equivalent luxury foreign trains.

Journeys and other luxury vacation products sell to the same significant and rapidly growing luxury travel market. Unique Journey by Rail characteristics provide product differentiation that can create a consumer awareness advantage over typical upscale vacation properties. 

UNMATCHED MANAGEMENT

Our CEO, Barry Jones, has over 40 years of pertinent experience. He leads a growing team of managers, operating personnel and outsourced managing entities that provide unmatched combined capabilities.

PROPRIETARY AND EXCLUSIVE RIGHTS, AFFILIATIONS

ATs has various proprietary rights, contacts and exclusive relationships that support car acquisition and repair, car operations, itinerary development, marketing, sales, and related enhanced earning potential.

         Largest vacation exchange company       America's National railroad

Tracks to Adventure™ is ATs’ trade name for tours and activities sold to passengers during Journey by Rail layovers. 

A for profit travel oriented TV show will be produced using ATs cars as a primary feature, creating valuable promotional exposure.

Rights to Internet domain names like "Choo Choo Chat", "Choo Choo Chatter" and others expand promotional and customer service opportunities. 

Certain exclusive operational support, sales agent arrangements and induced barriers should further deter the introduction of competitive rail vacation service in the USA.

MARKETING AND SALES - PRESENT DEMAND EXCEEDS SUPPLY*

*Relatively huge domestic and foreign markets combined with already existing sales outlets/sources should provide more than ample sources of consumers. 

Pent-up interest, unique Journey by Rail characteristics associated with railroad travel,  and a resurgence of interest in luxury train vacations are expected to further entice demand among American and international consumers wanting to enjoy America's only meaningful scheduled, luxury travel vacations; and from travel agents and others wanting to sell Journey products.

A very small share of identified pertinent segments of the large and rapidly growing luxury market is considered to be more than sufficient to achieve Journey by Rail product sales projections.

Covid-19 caused Amtrak to suspend train service on some routes causing us to put marketing and sales activities on hold until renewed departure dates can be confirmed with Amtrak, which is occurring now. Consumer demand has persisted and sales closings are being revived. 

  • Individual Journeys: Sales are made directly and through travel industry outlets, particularly key agencies featuring the sale of train vacations. The sales volume of some single agencies is sufficient to absorb all individual Journeys, at their option. They already have lots of suitable leads because they have been selling luxury foreign train vacations for years; and, if just .003% of the approximately 66,000 other full time domestic travel agents made one sale each week in year one and .105% weekly in year five, every Journey would be sold. Travel industry resource access is enhanced because our CEO has maintained industry relationships after owning the first nationwide and international travel agent franchise organization, which became north America’s largest retail travel agency group. ATs fares are profitably lower than equivalent foreign luxury train prices.
  • Train’SharesSales are thriving. We sell Train'Shares directly and through outside agents. RCI provides overall support. Its not in our forecast, but if just 0.1% of RCI’s 3,000,000 members (many buy/own multiple timeshares) purchased a Train’Share they would all be sold. In addition to other attributes, uncommon Train’Share timesharing benefits that enhance sales include the elimination of unreasonable fee increases, no payment of fees if Journeys are not used, and we will buy back Train’Shares. Revenue also comes from Train'Share owner association management.
  • Fractional interest (shared) ownerships: Sales are made directly, through brokers and some travel agencies to a growing higher end vacation market. Revenue also comes from fractional interest owner association management. Unpurchased fractional interest Journey time periods/inventories, if any, can be profitably sold as individual Journeys.

More than sufficient qualified potential buyers (leads) are expected from multiple existing sources including low cost internet and broadcast media editorial exposure, like (1) the October 2020 edition of the Robb Report (scroll down to the last paragraph), the "leading voice in the global luxury market", (2) the recent edition of Departures Magazine (scroll down to Southern Comfort) , the "definitive guide to the world's best luxury travel", and (3) other primary publications that follow and request information about ATs' Journeys by Rail.

REVENUE AND EARNINGS 

Sales were under way at the start of 2020 but were halted due to Covid-19 which caused Amtrak to suspend various operations.  Renewed sales are now imminent based on  Amtrak's implementation of its post Covid-19 timetable.

Annual gross revenue is expected to grow from about $3.0 million in year one to around $84.8 million in year five. Forecast annual EBITDA is around $1.0 million in year one and $42.3 million in year five. These projections are not guaranteed.

Cumulative five year gross revenue is forecast to be about $226.3 million (excluding $6.9 million of uncollected accrued Train'Share sales revenue) and forecast five year EBITDA is around $114.0 million *, as reviewed in the following chart.

                                  Revenue and net earnings, annual and 5 year cumulative

*  Uncommonly high forecast EBITDA profit margins have been thoroughly scrutinized and are considered to be achievable because of:  (1) reduced expenses from collaborations with Amtrak, RCI and key travel entities; (2) low initial capital cost for cars, per passenger; (3) elimination of costly surplus inventory; (4) lucrative, competitive fares that can be raised to match increasing luxury (foreign) per person train prices; (5) income and cost benefits from a flexible, mixed use, multi revenue stream business model; (6) ample, existing selling agents and outlets; (7) growing consumer demand for luxury rail vacationsluxury travel and resort vacations and timeshares/Train'Shares, (8) no meaningful U.S. train vacation competition; (9) lots of traction; and, (10) ongoing scalability. However, forecasts are based on forward-looking expectations that are not guaranteed.

THE COMPANY

America’s Trains Inc. (ATs) is a Wyoming corporation. Senior management presently holds the majority of ATs stock and is highly incentivized to prudently enhance earnings to increase the value of their and other investor shares.

To date 1,238,540 Class A common voting shares ("Class A shares") have been or will be vested/issued for a total equity investment of $618,112; they have been paid for by cash, for provision of goods at cost and for services valued at under 40% of their market value. Stock options provide for the sale of an additional 340,000 Class A shares to management and otherwise for reasons intended to enhance ATs’ business, at a price of not less than $0.50 per share. The total number of Class A shares, issued and options that are not yet paid for, is 1,578,540.

Class B common voting shares ("Class B shares") are being offered as described in Funding, below.  If the present maximum fund raise occurs, 369,047 Class B shares will be issued. 

DEBT

ATs has no notable debt that is presently payable. Debt includes: loans from ATs' CEO, most of which is expected to be paid with equity stock that has already been authorized; and, financing of a rail car with no current payment requirement. 

FUNDING, CLASS B SHARES WITH PREFERRED BENEFITS

Covid-19 created the present Class B common share ("Class B shares") investment opportunity because expected funding from travel industry sources was lost when vacation operations and related revenue was curtailed due to the pandemic. Based on evolving considerations, other funding plans may include future phases of equity financing, a merger or acquisition, arrangements for conversion of shares to public trading stock, and commercial equipment loans.

Initial funding of up to $250,000, followed by another $750,000 to the extent and if warranted, will expedite introduction of additional cars and related passenger capacity to meet anticipated growing demand.

Present funding includes the equity offering of Class B common voting shares to raise up to $249,999.50. The first 83,334 Class B shares are being offered at an 'early bird' special rate of $0.60 per share to raise $50,000.40 followed by up to an additional 285,713 Class B shares at $0.70 per share to raise up to another $199,999.10, a total of 369,047 shares.

An additional $750,000 may be raised by selling more Class B shares at an increased price per share, with fewer preferred benefits, depending on evolving considerations

Class B share rights are summarized below. See the Term Sheet and Subscription Agreement, and go to Benefit Procedures for details.

  • Dividends: Class A and Class B shares earn equal dividends. 
  • Stock Buyback by ATs: Between 730 and 760 days after the date that the related Subscription Agreement was executed, a Class B shareholder has the right to give irrevocable notice (“Notice”) to ATs instructing ATs to buy back all of such shareholder’s Class B shares. In this event, ATs will buy the shares back for a price equal to 130% of the total amount paid for them less the cash amount of Class B share dividends paid to such shareholder to date and less the cash value of used vacation Credits, payable by ATs within 60 days after receipt of the Notice. 
  • Reimbursement of Investment: Between 760 and 790 days after the date that the related Subscription Agreement was executed, a Class B shareholder has the right to give notice (“Notice”) to ATs instructing ATs to pay such shareholder an amount equal to the  total amount they paid for their Class B shares less the cash amount of dividends paid to them to date (“Reimbursement”) and they keep their shares. 
  • Vacation Bonus: Until a total investment of $50,000 occurs, Class B share investors receive cash vacation credits (“Credits”) for use as payment towards up to 100% of the published normal fare of available Journeys by Rail on related departure dates, and up to 64% of the current published price for a choice of other vacations (“Other Vacations”) as may be available from a timeshare vacation exchange entity selected by ATs. The percent amount of Credits for available Journeys by Rail or Other Vacations is based on the amount invested, the greater the investment the greater the percentage, starting at 50% for an investment under $1,000, increasing to 51% for an investment of $1,000 and increasing by 1% for each subsequent $1,000 invested, a Credit of up to 64% which is $9,600 for a $15,000 investment. However, the Credit towards payment for Journeys by Rail, not Other Vacations, is 100% for an investment of $15,001 or more, equal to the invested amount. Credits can be used for any available Journey by Rail or Other Vacations and are subject to normal terms and conditions of suppliers and providers. Investors are responsible for fees charged to use or reserve Other Vacations, which should be nominal, if any. ATs is responsible for provision and confirmation of Other Vacations. Reservations and payment for Journeys by Rail or Other Vacations, after deducting Credits, are made directly with and to a designated reservation center selected by ATs. Class B shareholders waive their right to any and all claims against providers and suppliers of Other Vacations in regards to availability and as provided for in their normal terms and conditions. If preferred vacations or dates are not available, an alternative available vacation or date must be selected. Credits are cancelled if Class B shares are sold by the initial investor. Credits must be used for Journeys within three years and for Other Vacations within two years after the date on which a related investment was made. See the following chart for Credit amounts. Available Journey by Rail Use: All Class A and Class B shareholders can purchase Journeys by Rail that might come available within 14 days of departure because of cancellations or otherwise, at a price equal to 35% of the price of the Journey  on a first come first serve basis. Available Journey details are published on the shareholder page of ATs’ web site. There is no availability guarantee. Vacation Credits can not be used for payment. 
  • Cash for customers: Class B shareholders are paid for sales made to customers referred by them, including (1) individual Journey can exceed $1,630, (2) a Train'Share can exceed $6,200, or (3) a fractional interest can exceed $13,200. Shareholder referrals will be given preference over outside sales agents for limited inventory products.
  • Anti-dilution: To avoid dilution of the percent of total ATs earnings attached to a shareholder’s Class B shares, buyers of 15,000 or more Class B shares have a right to maintain their percentage ownership of the earnings of the Company by purchasing an additional proportionate number of shares of any future stock issue.
  • Preferred rights to liquidation proceeds: In the unexpected event that ATs asset liquidation occurs, Class B shareholders have preferred rights to net liquidation proceeds equal to the price paid for Class B shares less Reimbursement Payments, ahead of Class A shareholders, subject to prior rights of other lien holders or creditors; plus, any additional declared but unpaid dividends. This includes net proceeds from the sale of rail cars.

An additional $750,000 may be raised by selling more Class B shares at price that would exceed $0.70 each, with fewer preferred benefits, depending on evolving considerations that may include, but are not limited to, (1) increased demand for Journeys by Rail and a need to expedite the introduction of additional rail cars, (2) capital source variables including availability of economical commercial equipment (car) financing, (3) early payment for unpaid Class A shares, and (4) the extent of positive cash flow.

VALUATION

The pre funding ATs valuation is purposely low at $947,000 which disregards desirable projected revenue and earnings expectations. 

The following section references forward-looking numbers and ATs assumptions that are not guaranteed.

This pre funding valuation is minimized to avoid over-optimism. It might realistically be notably higher if positive circumstances such as completed comprehensive startup requirements, market dominance, overall market size, imminent revenue and net income, approaching provision of Journeys and accelerating growth, other positive market forces, and anticipated future earning multiples are objectively applied to different valuation formats. The valuation was higher prior to Covid-19 when expected funding from travel industry sources faltered because related vacation entity operations and their revenue was curtailed due to Covid-19; such a relationship would have also provided an ATs valuation increase because of operating benefits derived from a travel industry relationship. We do not believe Covid-19 will have a lasting negative impact on ATs' growth and future valuation, although this cannot be guaranteed.

Based on forecast business progress through the first 12 months, with expected net earnings starting in month seven, ATs' post funding valuation is expected to increase to at least $3,500,000 at the end of year one, as described in the following chart.

               Projected valuation increase, 1st year, from $1.1 million to $3.5 million

Starting at $3,500,000 at the end of year one, if ATs is valued using anticipated EBITDA times 3, the valuation is about $139,000,000 after five years, as described in the following chart.

                          Expected minimal company valuation growth based on earnings

The projected share value is desirable based on EBITDA projections divided by the total number of Class A and Class B common shares, which is 1,947,578 assuming that the present capitalization table is adjusted to include the maximum number of Class B shares that may be issued, to raise $1,000,000.

To maintain optimum share value we continue to prudently consider share dilution when deciding on best ways to acquire capital to pay for rail cars and related services. 

Continuing consideration is being given regarding a DPO, merger, acquisition, and other capitalization opportunities that leverage ATs’ business valuation based on actual and expected earnings potential. Management knows of major entities that do or may have an interest in ATs. At the present time, there are no such pending relationships.




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