SCOTTSDALE, Ariz., Nov. 23, 2009 (GLOBE NEWSWIRE) -- EGPI Firecreek, Inc. (OTCBB:EFIR) released the projected annual revenue and backlog for its existing subsidiary South Atlantic Traffic Company ("SATCO") and its two target acquisitions currently under Letters of Intent ("LOI"). These numbers reflect the companies' strength and market positions in the D.O.T. lighting, intelligent traffic system and construction industry. As previously reported, EGPI signed LOI's with each of the two companies and is currently finalizing its due diligence and documentation phases in order to complete the acquisitions.
The Florida based signalization and lighting company, whose Letter of Intent was executed on October 5, 2009, has reported an average revenue run rate of $14.3 million, according its audited 2007 & 2008 financial statements, and currently has a sales backlog of an estimated $9 million. The Company has worked with many large retailers i.e.; Walmart, Lowes and Home Depot, in addition to several large private development companies. Their experience and reputation has also assisted them with the procurement of several City, County and State funded DOT projects.
The Georgia based electrical construction company, whose Letter of Intent was executed November 1, 2009 has reported a revenue run rate of $15.6 million, per their 2007 & 2008 certified financial statements, and currently has a sales backlog of $10.1 million. They have developed a credible reputation for outstanding support to customers and customer satisfaction. Today, they are one of the most comprehensive and competitive electrical contractors in the commercial and multifamily market in the Southeast.
These strong financial numbers are an indication of the companies' ability to operate efficiently in a competitive environment. The data also represents significant opportunity for growth and future capitalization on synergistic opportunities that will present themselves through EFIR's vertically integrated structure and diverse marketing strategy.
Dennis Alexander, Chairman and CEO of EGPI Firecreek stated, "We are pleased with the sound financial conditions of the companies as we enter the final stages of the acquisition process. The current backlog of the two companies represent a consistent revenue stream with expected growth potential from the combination of the entities under the EGPI Firecreek / M3 umbrella as we pursue the stimulus funds being allocated to the infrastructure markets. He also stated, "Upon the completion of these two acquisitions, we expect to achieve revenues run rate approaching approximately $45 million for the calendar year of 2010 on a Pro Forma basis, while maintaining a positive EBITDA. Additionally, with our recently announced $15 million term sheet and financing package, we are now in a position of strength and plan to follow through with these acquisitions while pursuing future targets and other opportunities for growth."
About M3
EFIR, through its M3 unit subsidiary, has been aggressively pursuing acquisitions and strategic alliances in the DOT construction industry on both State and Federal levels in order to expand and vertically integrate its business in 2009. Along with its recently acquired subsidiary, South Atlantic Traffic Corp. (SATCO), the addition of these strong acquisition targets will provide EGPI with the resources needed to successfully compete and show exponential growth in this industry.
About EGPI Firecreek, Inc.
Before the decision to transition and embark on an acquisition strategy centered on the vertical integration of enterprises serving the DOT Construction and Intelligent Traffic System markets, through its wholly owned subsidiary M3, Inc., EGPI Firecreek was historically focused on oil production with an emphasis on acquiring existing oil fields with proven reserves, the rehabilitation of potentially high throughput oilfields, resource properties and inventories on an international basis through the wholly owned subsidiary Energy Producers, Inc. ("Energy Producers"). EGPI Firecreek, Inc. is also looking to expand into Alternative energy sources as well as industries in the energy field. Other companies in the oil sector include Exxon Mobil, Pantina Oil and Gas Inc., Frontier Oil Inc., and Cabot Oil & Gas Inc. through Energy Producers as well.
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Safe Harbor
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of EGPI Firecreek, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond EPGI Firecreek Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in EGPI Firecreek, Inc.'s filings with the Securities and Exchange Commission.