Adsouth Partners (PK) (USOTC:ASPR)
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From Jan 2020 to Jan 2025
Average Order $20,500 or Approximately $500,000 in Total Orders;
Billy Mays, a Florida Resident Signed to Be Featured in Broadcast
Driven Direct Response Campaign
Adsouth Partners, Inc. (OTCBB:ASPR), today provided a business
update on its new majority-owned subsidiary, Genco Power Solutions
(Genco), http://www.gencopowersolutions.com, which markets, sells,
installs and services integrated power generator systems to
residential homeowners and commercial business throughout Florida.
Genco operates as an additional product category of Adsouth's Product
Division.
During the first month of operation, Genco has entered into
contracts for 23 orders for standby generators. The average order per
contract is about $20,500 or approximately $500,000 in total orders.
Genco expects to commence its first installations in the first quarter
2006 and believes it can fully complete 3 to 5 installations during
the first quarter. Therefore, Adsouth could realize some revenues from
Genco during the first quarter 2006. Adsouth had previously reported
on February 9, 2006 that it did not anticipate any revenue
contribution during the first quarter 2006 from Genco.
In order to develop the business more fully, Genco is acquiring
capital equipment and hiring installation personnel. Genco has
initiated a strategic ramp up of its infrastructure in order to
realize the cost and time saving of utilizing internal resources
during the installation process versus independent contractors. Due to
this strategy, Adsouth is projecting Genco's gross margin will
increase to 40%. Today, Genco employs no less than 25 individuals from
experienced vice presidents, customer service representatives,
electrical engineers, and 15 sales professionals covering the
Tri-County area of South Florida.
Genco's radio advertising program continues to be very successful,
generating over 1,200 leads during the first month of business. Genco
currently has over 400 additional appointments scheduled for the
remainder of the first quarter ending March 30. The subsidiary
marketing strategy is based on a traditional Direct Response marketing
matrix and to date has invested $40,000 in advertising expenditures,
which calculates to the effective rate of a $33 cost per lead.
Currently, Genco is running at a 10% closure rate, resulting in a $333
cost per customer acquisition rate. Based on an average sale of
$20,500, Genco is currently realizing a 2% advertising load, which is
well below the Company's original estimates and industry averages.
John Cammarano, Adsouth's Chief Executive Officer commented,
"Genco's fast start and operational progress during its first month of
business has exceeded our expectations. We believe we can quickly
expand this business by meeting the rapidly growing demand for power
generator systems particularly in regions associated with hurricanes
and other severe weather conditions that result in power outages." Mr.
Cammarano continued, "It is Adsouth's goal to enter product categories
with limited competition and prove their potential by gauging consumer
demand through our direct response experience. No matter if we are
selling consumer durables or mass retail products, Adsouth will
continue to leverage our model in the same manner."
In addition, Adsouth has signed industry powerhouse Billy Mays as
the spokesperson for the Company's majority-owned subsidiary, Genco.
Mr. Mays will be featured in commercials on both TV and radio, being
created and produced by Adsouth for the broadcast media. Genco will
target the Florida marketplace with the first radio spot airing on
March 2, 2006. Billy Mays is a national celebrity spokesperson for
numerous household related products including, Oxi Clean and Orange
Glo.
Billy Mays explained, "As a Florida resident, I have seen first
hand the hardships caused by the loss of power due to severe weather
conditions to both families and businesses. There is a growing demand
and a real need in both the residential and commercials sectors for
power generation systems, not only for the continuation of basic
everyday needs and services, but more importantly for safety and
security of family and assets."
John Cammarano, Adsouth's Chief Executive Officer commented, "We
are extremely pleased to have Billy Mays as our spokesperson for Genco
and working with us to expand our brand. Genco's value proposition is
built on integrating Adsouth's direct to consumer and direct response
advertising capabilities, with our new management team's experience in
engineering, permitting and installation of power generator systems.
Adding Billy Mays to this mix will help drive the importance of adding
a power generator system to a home or business and relating to Genco's
targeted consumer."
To preview a copy of the overview of Genco's consumer sales
presentation and the first Billy Mays radio spot please click on the
following link: http://www.gencopowersolutions.com.
Adsouth will report financial results for the fourth quarter and
full-year ended December 31, 2005 on Monday, March 20, 2006 before the
market opens and hold a live conference call on the same day at 11:00
a.m. Eastern Time. Investors who would like to participate on the
conference call, should call 800-565-5442 if calling within the United
States or 1-913-312-1298 if calling internationally approximately 5 to
10 minutes prior to 11:00 a.m. or access the call via Adsouth's
website at http://www.adsouthpartners.com.
About Adsouth Partners, Inc.
Adsouth Partners is a vertically integrated direct response
marketing company that generates revenues from the placement of
advertising, the production of advertisements, creative advertising
and public relations consulting services. Since mid 2004, it has
expanded its activities as it obtained the rights to products that it
markets and sells to retail outlets. Adsouth Partners, through its
product division DermaFresh, has previously announced shipments to
several of the largest retailers in the country. A complete list is
available on our website at http://www.adsouthinc.com and a preview of
the products offered is available at http://www.dermafresh.com
Information on our websites and any other websites do not
constitute a part of this press release.
Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under the
Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act
of 1934, and are subject to the Safe Harbor created by those rules.
All statements, other than statements of fact, included in this
release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Events that may arise could prevent
the implementation of any strategically significant plan(s) outlined
above. The Company cautions that these forward-looking statements are
further qualified by other factors including, but not limited to,
those set forth in the Company's Form 10-KSB filing, its registration
statements and other filings with the United States Securities and
Exchange Commission (available at www.sec.gov). The Company undertakes
no obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events or
otherwise.