NAS wins automation/control contract with City of Tuscon

  • December 10, 2007
  • National Automation Services, Inc.
  • News
LAS VEGAS, NV - Dec 10, 2007 - National Automation Services, Inc. and Intecon Controls Inc. located in Tempe Arizona, are pleased to announce the signing of an automation control contract for the City of Tucson to build required control and compressor panels for water wells located throughout the city. The contract is a continual supply contract which is open ended depending upon the needs of the city for these automation products and services. The Company estimates that this contract has a minimum value of $500,000 per annum and could rise to as high as $1,000,000 in annual revenues to Intecon. Profit margins are expected to exceed 30% on this contract. Intecon was also notified by the City of Buckeye, Arizona that it is also being awarded a contract for $280,000.00 for the Farralon Pump Booster Station controls located in the City of Buckeye Arizona. This contract is another municipal contract for new controls at the Booster Station which supplies domestic potable water to the city. Profit margins are expected to exceed 30% on this contract. VP of Sales Dayv Marlow of Intecon in describing these contracts stated: "We are already receiving the revenue synergies expected in our combination with National Automation Services, which we anticipated when we agreed to the acquisition. NASV and its wholly owned subsidiary, ISS, have an expertise in providing automation control products and services to municipalities in general, and municipal water treatment plants in particular. We are relied on that expertise in the bidding on these contracts, which we were pleased to be awarded." Robert Chance, CEO of National Automation Services, Inc., in describing the relationship with Intecon stated: "We are please that the management teams of Intecon and National Automation are working together even before the acquisition is officially closed during this month. Intecon has expertise in areas which our subsidiary, ISS, will utilize in expanding our revenue sources, and we are providing expertise to Intecon in area of municipal contracts, which has not been a major emphasis for it in the past. This is the reason that we believe that Intecon will double its revenues in 2008, and ISS' revenues will exceed $15 million in the next 12 months. We will be introducing the management team of Intecon to our shareholders, investors, brokers and analysts on our first national conference call which will be held today at 4:15 PM. We believe that all of our shareholders will be pleased with our value enhancing acquisition program, which will be discussed in detail today, and which is already bearing fruit at Intecon." Robert Chance will be hosting a conference call on Tuesday, December 4th, in order to discuss NASV's operations and acquisition strategy with it shareholders, the investing public, brokers and analysts. Topics that will be covered include: current projects, revenues and shareholder value, and upcoming acquisitions. Dial-in information for the conference call: Ready-Access Number: 1-800-503-2899, 7-Digit Access Code: 5673303. ABOUT NATIONAL AUTOMATION SERVICES, INC.National Automation Services, Inc. is a public holding company for specialized automation control companies located in the Southwestern United States. The Company presently owns 100% of the stock in Intuitive System Solutions Inc. ("ISS") of Las Vegas, Nevada and is currently completing its second acquisition in Phoenix, Arizona of Intecon Controls Inc. The Company currently focuses on: Industrial Automation and Control. With an experienced staff of electrical and control engineers, as well as project managers, with over 80 years combined 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 into California, Texas and New Mexico and other western states during 2007 and nationwide in 2008. From this segment of the business, NAS is projected to realize $7 million of gross revenues in 2007 and increase the gross revenues from this division to over $21 million in the 6 months through key acquisitions. As an example of the type of services provided in this division, a major national airline utilizes ISS extensively for automation projects at Las Vegas McCarren International Airport. 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. From this segment of the business, NAS is projected to realize $3 million of gross revenues in 2007 and increase the gross revenues from this division to over $6 million in the next year just from ISS and Intecon alone. NAS projects achieving gross revenues from ISS in 2007 of $2,544,094, with a net pre-tax income of $781,688 and $2.4 million from Intecon Controls with a net pre-tax of $480,345. Through an acquisition strategy that encompasses a minimum of one major acquisition per quarter, as well as through internal growth of ISS, due to its recently granted increase in licensing capacity to $2 million per project, the Company should increase gross revenues to $25,780,972 in 2008, with net pre-tax income of $16,190,755. With a total of 40 million shares outstanding the management of the Company projects earnings per share of $0.03 in 2007 and $0.27 in 2008. Learn More

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