ADM Endeavors Continues to Add New Government Clients
ADM Endeavors (OTCQB: ADMQ) reports new government contracts and a corporate update. The company's subsidiary, Just Right Products Inc., has secured contracts with Tarrant County, Dallas County, City of Euless Fire Department, Upper Trinity Regional Water District, City of Irving Parks and Recreation, and Trinity Basin Preparatory. These wins validate ADM's strategy of targeting local public organizations for long-term, recurring business.
The company's new facility construction is progressing, expected to be operational by end-2024, potentially increasing production capacity by 5x. Based on local real estate comparisons, the new facility and remaining land could be worth $11-$15 million. ADM is also exploring M&A opportunities in the fragmented Texas promotional products market to accelerate growth.
- Secured multiple new and renewed government contracts, including a $500,000+ potential contract with Tarrant County
- New facility construction on track, potentially increasing production capacity by 5 times
- New facility and land estimated to be worth $11-$15 million, adding significant asset value
- Sales momentum accelerated in Q1 2024
- Exploring M&A opportunities to accelerate growth in fragmented Texas market
- None.
New Facility Under Construction plus Land Could be Worth
Fort Worth, Texas--(Newsfile Corp. - July 15, 2024) - Just Right Products Inc., the wholly owned subsidiary of ADM Endeavors (OTCQB: ADMQ) ("ADM" or the "Company"), announces several new government contracts and provides a general corporate update.
New customer wins and contract renewals
In 2023, ADM Endeavors pivoted its sales strategy to focus on building long-term relationships with repeat customers. Unlike most promotional product companies that pursue big corporate deals through brokers, ADM targets local public organizations like schools and government departments. Although many of these organizations provide smaller contracts, the market opportunity is larger than corporate deals and these smaller deals tend to generate reoccurring, consistent business as well as predictable revenues. The Company's performance through the first half of 2024 has proven this strategy is working via the Company's steady growth in both business and revenues.
Some of the recent contracts signed include:
- Tarrant County renewed its contract with ADM because of competitive pricing and exceptional service. This contract includes additional opt-ins that could push the total contract value beyond
$500,000. T arrant County has partnered with ADM for the last five years and we view them as a trusted partner. This contract has recently led to three new referral cities in Texas - Burleson, Evermon, and Boyd.
- Dallas County contract growth, and with exceptional performance ADM anticipates receiving additional city referrals, as seen with the Tarrant County contract.
- The City of Euless Fire Department renewed its contract.
- Signed a new contract with Upper Trinity Regional Water District for employee uniforms and other requested items. This new customer was a referral from an existing customer.
- Won a contract with The City of Irving Parks and Recreation to provide items for summer programs. This RFP was won based on competitive pricing and positive references.
- Won a contract with Trinity Basin Preparatory for new school uniforms. This is a shared contract between four vendors. ADM is the only vendor servicing high school students and is among three other vendors servicing the rest of the age groups. The contract will add approximately 12,000 students to the retail segment of the business.
- International Leadership Mansfield Heritage K-8 added a new location with up to 800 students and will have their uniforms serviced by ADM Endeavors this school season.
"Sales momentum accelerated in Q1, and we continue to win new long term government contracts, which should lead to consistent growth," said ADM Endeavors CEO Marc Johnson. "We have a strong brand identity within our targeted market of Texas, which continues to drive new contract wins. The execution in our base business is paving the way for future expansion through both organic growth (existing and new customers) and through a M&A roll-up strategy. Construction of our new facility is progressing, and it remains on target to be operational before the end of 2024."
Update on the New Facility
To support ADM Endeavors' continued growth through targeted smaller, local public organizations, the Company is constructing a new facility that can increase production by up to 5 times current capacity. The new facility will serve as a centralized manufacturing hub, fulfillment center, and retail storefront, consolidating operations under one roof to drive margin expansion and better enable the Company to serve its customers. The facility remains on track to open before year-end. The Company is pleased that property value has increased significantly since first acquired in 2021 and the new facility under construction will be another accretive fixed asset for shareholders.
Based on comparisons to recent local listings for peer industrial properties from multiple real estate agents, the new facility could be worth between
Construction is well underway with the concreate slab completed and
Figure 1
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Figure 2
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M&A Outlook
To accelerate growth, ADM Endeavors is also investigating opportunities to acquire accretive businesses. The Texas promotional products market is highly fragmented with several family businesses that do not have executive succession plans seeking exits. ADM Endeavors is currently evaluating several opportunities and will update investors if/when attractive and accretive opportunities present themselves.
About ADM Endeavors
ADM Endeavors is a diversified, direct marketing and value-added manufacturing company providing customers with customized promotional products and wearables. Since 2010, our wholly owned subsidiary, Just Right Products, Inc., has been consistently increasing our recession resistant customer base, with sales topping
- https://admendeavors.com/
- https://www.fwpromo.com/
- https://fortworth.academicoutfitters.com/
- https://www.facebook.com/groups/admqshareholders/
Forward-Looking Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Any statements that are not historical facts contained in this press release are "forward-looking statements" that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "would," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the retail industry, the COVID-19 pandemic, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in our filings with the Securities and Exchange Commission. We intend that all forward-looking statements be subject to the safe -harbor provisions. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For further information about ADM Endeavors, please contact:
Marc Johnson, CEO
Phone: 817.231.8048
E-mail: info@admendeavors.com
For investor information for ADM Endeavors, please contact:
Sean Peasgood, Investor Relations
Phone: 647.255.7570
E-mail: sean@sophiccapital.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/216463
FAQ
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