New Facility Under Construction plus Land Could be Worth $11 Million to $15 Million
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. Tarrant 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 $8 million to $10 million upon completion. Based on similar comparisons, the remaining 10.5 acres of raw land could be valued between $3 million to $5 million. These data points are based off current unsold properties and are illustrative of the hidden asset value not fully reflected on the Company's balance sheet.
Construction is well underway with the concreate slab completed and 50% of the vertical beams erected. For more construction updates you can follow along via twitter @AdmqEndeavors for progress videos.
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 $5.6 million for the last reported 12 months. The Company sells "Anything With A Logo" on its website, www.JustRightProducts.com, developing products ranging from unique business cards to coffee cups, T-shirts to boots, with tens of thousands of other unique products from which to select. Just Right Products, Inc. operates a diverse vertical integrated business in the Dallas/Fort Worth area, consisting of a retail sales division, screen print production, embroidery production, digital production, import wholesale sourcing, and uniforms. For more information, please visit:
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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
