National Automation Services, Inc. Announces $10,000,000.00 Acquisition Funding Secured With Trafalgar Capital, and the Audit Is Complete, Filing of S1 Documents Now Pending to the SEC
Market Wire, April, 2008
National Automation Services, Inc. (PINKSHEETS: NASV) ( www.n-a-s-inc.com ), a public holding company for regional automation control companies, today announced they have secured a $10,000,000.00 Line of Credit for future Acquisitions and the Audit has now been completed paving way to apply for the Electronic Bulletin Board.
Related Results
Trafalgar Capital of Luxembourg issued its first funding to NAS on Wednesday, March 26th for $1.5 Million to secure the Note being held by their second acquisition located in Tempe, Arizona, Intecon Controls, and for working capital for the Company. The initial funding secured by NAS from Trafalgar Capital is $10,000,000.00, launching Management of NAS on their campaign of securing 5-6 additional acquisitions this year. Additional funding beyond the $10,000,000.00 has also been discussed with Trafalgar once this year's campaign is completed. NAS has plans to secure 8 additional Companies next year and will likely require additional funding as needed, depending on the size of each of the acquisitions being sought.
Additional news from the Company includes the SEC Audit is now complete and the Attorneys, Accountants, and Management are working on the S1 Document which will be filed to the NASD for moving National Automation onto the Electronic Bulletin Board on the New York Mercantile.
Jonathan Woods, CFO for National Automation Services, stated: "Our progress towards completion of the Audit is unprecedented with a Team of six individuals from the Auditing Firm Lynda R. Keeton and Associates and National Automation focused on the task which was mandated by Bob Chance, our CEO, and the Board of Directors as high priority.
"Mr. Chance, we thought, had the unrealistic goal of completing the Audit by the end of March. For a two year Audit I thought it would take much longer but whenever we felt the timeline was slipping, he kept throwing more resources our way to get us back on track and completed on time. This is very important to the Company so we all put in long hours, working 7 days a week until completion. Now we are focusing on the development of the S1 Form which will be submitted to the SEC and NASD for approval to move onto the Exchange. Special thanks to Lynda Keeton and her Staff, they really went above and beyond the call of duty."
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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 throughput, 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, i.e. food, clothing, and shelter, and almost everything else of which we consume or come in contact with uses automation.
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, i.e. 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., privately owned, and local in nature, and totalling 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. Overall the automation industry in the U.S. alone tops the $400 billion mark each year which is 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.
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