Electric City Closes Acquisition of Switchboard Apparatus Inc.; First Acquisition Closes Smoothly Followed by Integration of Switchgear Business Units.Business Editors ELK GROVE VILLAGE Elk Grove Village, village (1990 pop. 33,429), Cook and Du Page counties, NE Ill., a suburb of Chicago; inc. 1956. With a population of c.100 at the time of its establishment on open farmland, the village has grown dramatically and steadily, largely because of its , Ill.--(BUSINESS WIRE)--September 6, 2000 Electric City Corp. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :ECCC ECCC Electronic Colloquium on Computational Complexity ECCC East Central Community College ECCC Electronic Commerce Council of Canada ECCC Eastern Collegiate Cycling Conference ECCC European Communities Chemistry Council ECCC Essex County Cricket Club ), announced today that the Company has closed its acquisition of Switchboard Apparatus Inc. Switchboard Apparatus Inc. is a 92 year old stalwart Stalwart A description of companies that have large capitalizations and provide investors with slow but steady and dependable growth prospects. Notes: The annual gain that would be viewed as the norm for investing in stalwarts is about 10% to 12%. of the electrical switchgear The term switchgear, used in association with the electric power system, or grid, refers to the combination of electrical disconnects, fuses and/or circuit breakers used to isolate electrical equipment. industry. "Our acquisition of Switchboard Apparatus is one of the most important steps Electric City has taken as part of our year 2000 business plan," stated John Mitola, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Electric City Corp. "The timing of this closing couldn't be better. We are acquiring Switchboard in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of record growth for their business. This business unit will bring us an immediate boost in revenue and cash flow along with an important addition to our manufacturing capacity for all of our product lines." "When we reached agreement to acquire Switchboard Apparatus we had strong expectations for growth in their core business," added Jeff Mistarz, CFO See Chief Financial Officer. of Electric City Corp. "During our due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. period, we have been pleasantly surprised by the growth they have been experiencing already in 2000. Year to date August, 2000, Switchboard has recorded approximately $2.5 million in revenue and should end the year with approximately $5 million in revenue, which represents a 35% increase over the previous year's results." Switchboard Apparatus has been in business for over 90 years. Under the ownership of a group led by Dale Hoppensteadt since 1992, the company has rapidly developed its product line and its relationships with premier customers. Its product line includes innovative technologies such as tenant metering switchboards, patented products for the chipmaking industry and unique standardization standardization In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting of paralleling switchgear for the cogeneration and backup power An additional power source that can be used in the event of power failure. See UPS and backup.  A Half Minute of Backup This roomful of lead acid batteries stands ready to drain itself entirely in less than a minute. industries. The company holds two patents related to these technologies and is pursuing application for additional products under development. As a result of the acquisition, Mr. Hoppensteadt has been named president of the Custom Switchgear business unit of Electric City. "While we have been preparing for closing this transaction, we have been working with Electric City to develop, refine and shape our electrical switching and power reliability monitoring systems for the telecommunications and internet industries," stated Dale Hoppensteadt. "We believe the products developed by Switchboard Apparatus, in addition to those developed by Marino Electric, provide a solid foundation for new offerings we will soon officially be launching. This product line will be focused on power reliability, backup power and peak shaving generation. All of these technologies are perfect complements to Electric City's demand side management product lines - the EnergySaver(TM) and the SystemCommander." "Closing this acquisition sends an important message to our shareholders and other investors that we will consistently follow through on our commitments and plans for growth," added Brian Kawamura, President/COO of Electric City Corp. Electric City is a leading developer, manufacturer and integrator of energy savings technologies and custom electric switchgear. The Company currently manufactures and markets custom switchgear, the EnergySaver(TM) and the SystemCommander. Electric City is based in Elk Grove Village, Illinois Elk Grove Village is a municipality located in northeastern Illinois adjacent to O'Hare International Airport and the City of Chicago. Elk Grove Village encompasses 10.9 square miles in land area with 10.5 square miles located in Cook County and 0. and is traded under the symbol ECCC. Additional information is available by contacting the StockPage at 1.800.797.5683, the Company at (847) 437-1666 or visiting its website at www.electriccityeccc.com. For additional information regarding the Company's acquisition of Switchboard Apparatus, see the Electric City Press Release dated March 24, 2000 on the Company's website under the "Successes" section. This news release includes certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that reflect Electric City's current expectations about its future results, performance, prospects and opportunities. Electric City has tried to identify these forward-looking statements by using words such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates", "should" or similar expressions. These forward-looking statements are based on information currently available to Electric City and are subject to a number of risks, uncertainties and other factors that could cause Electric City's actual results, performance, prospects or opportunities in the remainder of 2000 and beyond to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the actual revenue generated over time by the Switchboard Apparatus merger as well as the prospects for the Company's new line of primary power switching and monitoring systems. For further information about these and other risks, uncertainties and factors, please review the disclosure included under the caption "Risk Factors" in Electric City's filings with the Securities and Exchange Commission. Except as required by the federal securities laws, Electric City undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this news release. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion