National Automation Services, Inc. Ends First Quarter With Contract Backlog Approaching $5,000,000 The Company Sets Its Goal of Acquiring Five to Six Additional Companies in 2008
SOURCE:
National Automation Services, Inc.
2008-04-08 04:00:00
National Automation Services, Inc. Ends First Quarter With Contract Backlog Approaching $5,000,000
The Company Sets Its Goal of Acquiring Five to Six Additional Companies in 2008
LAS VEGAS, NV–( EMWNews – April 8, 2008) – National Automation Services, Inc.
(www.n-a-s-inc.com), (
regional automation control companies, today announced that as of April
8th, 2008 its subsidiaries, Intuitive Systems Solutions, Inc. (ISS) and
Intecon Controls, Inc (Intecon) have secured long term contracts which
approach $5,000,000 in value. Based upon historical average gross margins
such contracts are expected to generate gross operating profits of a
minimum of $1,750,000. This backlog of contracts is a record for the
Company. Outstanding bids by the Company’s subsidiaries totaled more than
$3,000,000 at the end of the first quarter. The Company forecasts that
contracts backlog will increase to more than $6,000,000 in the next 60
days. The Company continues to add to its staff of project managers,
engineers, and support personnel in order to assure that all contract work
is started and completed on time.
Additionally, since the securing of the $10,000,000 financing from
Trafalgar Capital, the Company’s Acquisition Committee has increased the
pace of its review of acquisition targets. The Acquisition Committee is
now projecting the acquisition of between five and six regional automation
companies by the end of this year. Once this goal is achieved the
acquisitions are expected to add gross revenues of a minimum of $20,000,000
to the Company’s annual consolidated revenues.
Bob Chance, CEO of National Automation Services, Inc., in describing the
results of the first quarter stated: “I am very proud of our team in
achieving the goals that were set for the first quarter. Such goals
included expanding each existing subsidiary, which has been achieved due to
the amount of contract work that we have been awarded. Another goal that
we achieved in the first quarter was the completion of our financial audit,
which now allows the Company to file for reporting status with the SEC and
move to the Bulletin Board as our primary trading venue. Finally our goal
of arranging significant acquisition financing was achieved. The $10
million commitment should be sufficient to complete our acquisition program
for 2008.”
“Although we are focused on acquisitions, our primary task in the first
quarter was to achieve significant internal growth through increasing the
backlog of contracts secured by our two subsidiaries. Jody Hanley,
President of ISS, and Brandon Spiker, President of Intecon, have done a
fantastic job of achieving our first quarter goal. We believe that we are
well on the way of obtaining a $10 million constant backlog by the end of
this year.”
“We also appreciate the foresight of Trafalgar Capital, who is backing our
strategy of building a much larger company through synergistic acquisitions
by issuing us a $10,000,000 funding commitment, of which we have only used
$1,500,000 during the first quarter. We are in an active due diligence
phase on several companies interested in joining NAS, which on the surface
meet the acquisition standards set by the Acquisition Committee. The
Company has a very selective approach when qualifying our acquisition
targets, as they have to be synergistic with our other operations. The
management must be willing to stay with the acquisition’s operations, allow
the acquisition to diversify geographically, and, most importantly, be
profitable. The companies currently under due diligence include companies
located in San Diego, Chicago, Pennsylvania and Ohio.”
“We will continue to keep our shareholders and the market informed of our
progress as we believe our operational and acquisition results in the
second quarter will continue to increase value for our shareholders.”
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ABOUT NATIONAL AUTOMATION SERVICES, INC.
From Hand Production to Automation
Before the Industrial Revolution, virtually all goods were made by hand.
With the Industrial boom of the 1900s, the automation and controls industry
was born to improve the quality and reduce the costs of tedious, repetitive
tasks in the industrial plants.
Immediately after World War II, computers were born, almost entirely for
scientific purposes. By the early 60s, computers began to make their way
rapidly into process control and production. Automated assembly lines took
on more and more tasks, allowing for an increasing number of automated
processes and adjustments. By eliminating tedious tasks usually performed
by hand, the owners of a plant realized higher quality and more output
which improved not only quality but competitiveness as well.
Today’s Markets
Automation touches our lives without notice, from the food we eat, to the
clothes we wear, to the building materials we use; and almost anything else
we consume or come in contact with.
Accordingly, the markets of National Automation Services, Inc. are vast.
They include waste/water treatment, airport security systems, bottling
plants, power plants, metals, mining, breweries, food processing, tire
making, textiles, plastics, and virtually all production activities.
Although there are a handful of very large automation and controls
companies, the industry is highly fragmented with about 286 companies of
modest size in the U.S. These companies are privately owned, local in
nature, and total approximately $32 billion in annual gross sales.
A handful of larger automation companies dominate the market as they offer
national, as well as worldwide, support for the Corporate and Government
clients they serve. In total the automation industry in the U.S. exceeds
the $400 billion mark each year, largely serviced by this handful of firms.
Where We Are Going
NAS intends to build a nationwide company through acquisitions and internal
growth in this fragmented market. We believe that our growing company will
retain healthy margins and produce attractive increases in earnings per
share during the period of this Plan. Our estimate is that we will
immediately produce cost savings of 12-15% on each acquisition, thereby
driving consolidated EBITDA and earnings per share. Furthermore, NAS, by
utilizing the expertise of the group, the sharing of national contracts,
and proven revenue enhancement techniques, has the goal of doubling the
gross sales of each acquisition in the first 12 months of the date of each
acquisition.
The Company currently focuses on:
Industrial Automation and Control. NAS has an experienced staff of
electrical and control engineers, as well as project managers, with
experience in industrial automation and controls. The Company’s business is
currently focused in Nevada, Arizona, and Utah, but it intends to expand
through internal growth and acquisitions throughout the U.S. during 2008.
Automation Manufacturing. The Company is a certified Underwriters
Laboratories Panel fabrication facility. This nationally recognized
regulatory body provides NAS with significant marketplace credibility for
custom control panel assembly and fabrication to its clients.
FORWARD-LOOKING STATEMENT: This press release contains forward-looking
statements, including expected industry patterns and other financial and
business results that involve known and unknown risks, uncertainties and
other factors that may cause our actual results, levels of activity,
performance, or achievements to differ materially from results expressed or
implied by this press release. Such risk factors include, among others:
the sustainability of recent growth rates in the automation controls
industry, the positioning of NAS in the market, the ability to integrate
acquired companies and technology, the ability to retain key employees, the
ability to successfully combine product offerings and customer acceptance
of combined products, general market conditions, fluctuations in currency
exchange rates, changes to operating systems and product strategy by
vendors of operating systems, and whether NAS can successfully gain market
acceptance. Actual results may differ materially from those contained in
the forward-looking statements in this press release.
CONTACT INFORMATION
National Automation Services, Inc. Investor Relations Contact: |
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