Recent Acquisitions Bring Over $40 Million in Revenue and Poise Genesis Group Holdings, Inc. for Continued Growth; Greater Market Share
BOCA RATON, Fla., Sept. 24, 2012 /PRNewswire/ -- Genesis Group Holdings, Inc. (GGHO), an end-to-end provider of outsourced engineering and installation services to companies specializing in telecommunications, broadband cable, and wireless networks, confirmed in a Form 8K filing with the SEC on Friday, September 21, last week's acquisition of both ADEX Corporation, an Atlanta-based telecommunications service provider, and TNS, Inc., a Chicago-based structured cabling company and distributed antenna system (DAS) installer. With these acquisitions the Company can develop a comprehensive platform and leverage new resources for accelerated growth, making it even more attractive for future investment.
"The acquisition of ADEX and TNS, which both enjoy a strong reputation for service and quality through their broad reach, will create a strong foundation for further participation in this niche space. The acquisitions, have over $40 Million in profitable revenue over the last 12 months, bring Genesis's growth potential to a whole new level," said Mark Munro, CEO of Genesis. "These acquisitions reinforce our business strategy to develop a comprehensive platform to make us more competitive in our markets while increasing our cash flow so that we can pursue additional strategic acquisitions, increase organic growth, and enhance our appeal to shareholders and investors."
$13 Million in funding provided by MidMarket Capital Partners, LLC allowed Genesis to complete the acquisitions and retire the debt of UTA Capital Partners, LLC. Several private investors also contributed over $3 Million in equity to facilitate the transactions.
ADEX Corporation is an international service organization that provides turnkey services and project staffing solutions exclusively to the telecommunications industry. ADEX assists telecommunications companies throughout the project life cycle of any network deployment. For the 12 month period ending July 31, 2012, ADEX reported approximately $2.2 Million in EBITDA; $3.1 million in adjusted EBITDA after excluding non-recurring expenses of approximately $985,000.
TNS, Inc. is a structured cabling company and distributed antenna system (DAS) installer that performs full-service structured cabling design and turnkey installations. The Company generated close to $4 million in gross revenue over the 12 month period ended July 31, 2012 and approximately $300,000 in EBITDA; $1.2 million in adjusted EBITDA after excluding non-recurring payroll to founders of $935,000.
Munro added, "We look forward to leveraging the strengths of ADEX and TNS to better align us for our future growth strategies as we expand our already strong portfolio of specialized services."
For more detailed information please view the Company's most recent SEC form 8K filing.
About Genesis Group Holdings, Inc.
Genesis Group Holdings operates through its subsidiaries as an end to end provider of engineering, construction management and installation services to companies specializing in the telecommunications, broadband cable and wireless industries, including planning, deployment and management of network build-outs. For more information, please visit: www.genesisgroupholdingsinc.com
Certain of the statements contained herein, which are not based on historical fact and can generally be identified by words such as "anticipate," "believe," "plan," "continue," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, among other things, the expectation that the Company will have positive earnings and operational cash flow or that the Company will be better able to compete for new business. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in GGHO's annual report on Form 10-K for the most recent fiscal year, GGHO's quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
CSIR Group, LLC
SOURCE Genesis Group Holdings, Inc.
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