New Facility Under Construction Appraised at US$13 Million
- New US$13M Facility on Track: ADM Endeavors' new 100,000 sq. ft. facility, appraised at US$13 million, is nearing completion, enhancing production capacity and consolidating operations for streamlined growth.
- Market Expansion Opportunity: With a major competitor's (Dennis Uniforms) recent exit, ADM is strategically positioned to capture increased market share in the Dallas-Fort Worth school uniform sector.
- Projected Revenue Growth: ADM aims to leverage its expanded facility to potentially double or triple its school uniform revenue by 2025, capitalizing on demand from displaced customers.
- Strengthened Sales Force: New outside sales leader Ashley Hester brings two decades of industry experience, initiating outreach to schools and setting ADM up to fill a critical supply gap in the uniform market.
Fort Worth, Texas--(Newsfile Corp. - October 29, 2024) - Just Right Products Inc., the wholly owned subsidiary of ADM Endeavors (OTCQB: ADMQ) ("ADM" or the "Company") , announces major operational developments, including construction updates on their new manufacturing facility, expanded contract renewals, and the strengthening of its sales team. The Company also provides an industry update, highlighting significant growth opportunities within the school uniform market.
Strategic Path Forward
ADM is looking to capitalize on a unique opportunity in the Dallas Fort-Worth (DFW) school uniform market, as the recent exit of a key competitor creates a clear path to expand its market share. The timing aligns perfectly with ADM's new facility completion, allowing the Company to scale its operations and reinforce its established regional presence.
The Company has developed a robust pipeline of opportunities to fully utilize the new facility's increased capacity. This significant asset value, however, is not yet reflected in the Company's valuation, presenting substantial upside for shareholders.
With approximately US$1.4 million in school uniform revenue generated in 2023, ADM anticipates the potential to double or triple this figure by 2025. With demand now bolstered by displaced customers, the competitive landscape is favorably positioned for ADM to capture additional business.
New Facility to Support Accelerated Growth
ADM's ongoing construction of its new 100,000 sq. ft. production and retail facility is central to the Company's growth strategy. This facility is projected to increase revenue capacity by up to five times, enabling ADM to better meet the growing needs of both new and existing customers through both organic and strategic growth initiatives.
Originally planned at 80,000 sq. ft., the expanded facility allows for improved space utilization and operational efficiency. This centralized hub will streamline ADM's manufacturing, fulfillment, and retail operations, driving stronger margins and enabling a broader product offering. Management expects the facility to be fully operational in the first quarter of 2025.
The Company has also benefited from a significant increase in property value since the initial acquisition in 2021. ADM's recent appraisal valued the completed facility at approximately US$13 million, with an additional US$3.7 million for the adjacent excess land. These valuations underscore the Company's robust asset value and provides additional support to shareholder equity.
Momentum in Customer Acquisitions, Contract Renewals, and Account Growth
ADM continues to pursue and secure new customer contracts and renewals, highlighting its sales momentum and commitment to long-term partnerships with local public organizations. Unlike many competitors who pursue large corporate deals, ADM has focused on building strong relationships with public-sector entities like schools and government departments, leading to consistent and predictable revenues.
The Company is also in the process of negotiating with customers of Dennis Uniforms, which announced its bankruptcy on October 21, 2024 (more in the Industry Update section). Although there is no guarantee that ADM Endeavors will win contracts with the prospects, management is optimistic about the discussions and believes negotiations are proceeding favourably.
Strengthening the Sales Team to Capture New Opportunities
To drive growth, ADM Endeavors has appointed Ashley Hester as a new sales representative. Ms. Hester brings over 18 years of promotional marketing experience and has won high-profile contracts with organizations like 7-Eleven, Texas Christian University and Southern Methodist University. She has already reached out to over two dozen schools in DFW's Tarrant County, and although these discussions are preliminary, she has received positive feedback with further outreach expected in the coming weeks.
Industry Update
As mentioned, Portland's Dennis Uniforms announced the closure of its operations nationwide, leaving 2,000 schools and approximately 370,000 students without a uniform provider. The void extends to the DFW area, where the Company estimates approximately 50 schools now need a new uniform supplier. This development presents a significant opportunity for ADM to increase its market share beyond the five schools it services in DFW's Tarrant County. ADM is well-positioned to fill the supply gap with its new manufacturing facility and has commenced outreach to these schools.
Management Commentary
"ADM's dual strategy of organic growth through customer acquisition and an M&A roll-up approach is progressing as planned," said ADM Endeavors CEO Marc Johnson. "Our expanded facility will serve as a launchpad for capturing additional market share, diversifying our product offerings, and securing more long-term contracts. As we complete this peak season for uniform sales, ADM is poised to deliver a strong financial performance. The Company expects the combination of new business, contract renewals, and expanded production capabilities to generate meaningful top-line growth while improving operational efficiencies. With ADM's strategic initiatives and strong market position, I am confident in the Company's ability to accelerate growth and solidify our leadership in the promotional products and school uniforms industry."
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 vertically 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:
Forward-Looking Statement
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Any statements that are not historical facts contained in this press release are "forward-looking statements" that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Words such as "strategy," "expects," "continues," "plans," "anticipates," "believes," "would," "will," "estimates," "intends," "projects," "goals," "targets" and other words of similar meaning are intended to identify forward-looking statements but are not the exclusive means of identifying these statements. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the fluctuation of global economic conditions or economic conditions with respect to the retail industry, the COVID-19 pandemic, the performance of management, actions of government regulators, vendors, and suppliers, our cash flows and ability to obtain financing, competition, general economic conditions and other factors that are detailed in our filings with the Securities and Exchange Commission. We intend that all forward-looking statements be subject to the safe -harbor provisions. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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