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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), (PINKSHEETS: NASV), a public holding company for

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.”

Stay up-to-date with current events by joining National Automation

Services’ E-Mail Alert List. Join by clicking the following link:

http://n-a-s-inc.ir.stockpr.com/information-request

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.
Bob Chance
2053 Pabco
Henderson, NV, 89011
(702) 642-7720

Investor Relations Contact:
David Donlin
The Cervelle Group
238 N. Westmonte Drive
Suite 210
Altamonte Springs, FL 32714
(407) 475 9859

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Blake Masterson

Freelance Writer, Journalist and Father of 5

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