Well, I guess we know where the $40 million line of credit will come in handy.... <vbg> And I feel they will be having other announcements similiar to this during the upcoming months.
Btw, if I recall correctly, I believe the profits margins for these fabrication operations are at least 15-20%. I'll try and get some more specific information.. (that is usless someone once to beat me to the punch and call them first... :0)
Ron
***********************************************
SOURCE: U.S. Technologies Inc.
U.S. Technologies Inc. Announces Three-Year Agreement With Affordable Interior Systems
MARIETTA, Ga., Aug. 25 /PRNewswire/ -- U.S. Technologies Inc. (OTC Bulletin Board: USXX - news; the ''Company'') today announced that it has entered into a three-year agreement with Affordable Interior Systems, Inc. (''Affordable''), a wholly-owned subsidiary of U.S. Office Products (Nasdaq: OFIS - news), to manufacture and assemble products that comprise modular office furniture systems (work stations). It is expected that the Company will generate revenues in excess of $5 million over the term of the agreement. The agreement with Affordable will allow the Company to employ at least 200 inmates in two or more correctional facilities. The first facility to open will be the Chuckawalla Valley State Prison, a state-managed institution in Blythe, California. The opening date is scheduled to be on or before September 30, 1998. The Company will have access to a 60,000 square foot industry building and a prison population of 3,600 inmates at the Chuckawalla Valley State facility. The Blythe location is the Company's second California location. The Company's other California location is a Wackenhut-managed facility in McFarland, California.
Arthur Maxwell, President of Affordable, stated that, ''Affordable is excited about the agreement with the Company and recognizes the benefits that the PIE Program will afford to the inmates and to society.'' He also commented that, ''this agreement will not take any jobs away from working Americans.''
Kenneth H. Smith, President and CEO of the Company, stated that, ''we are equally as pleased to be associated with Affordable, as they are the exact type of client that the Company was designed to serve. The Company is proud to assist Affordable with their nationwide expansion plans and delighted that Affordable realizes the societal benefits of the PIE Program.''
The opening of the Blythe facility is consistent with the expansion plans of the Company to be the nation's largest outsourcing Company utilizing prison inmates under the 1979 Federal Government Prison Industry Enhancement Program.
In addition to the Blythe, California facility, the Company operates in Wackenhut-managed facilities in Lockhart, Texas, and in McFarland, California, as well as in the Olympus Correctional Facility, located in Draper, Utah, which is managed by the State of Utah Department of Corrections.
U.S. Technologies Inc., based in Marietta, Georgia, is a national outsourcing company, which solicits labor-intensive work from Fortune 1000 companies, to be performed by its manufacturing subsidiary, Labor-to-Industry Inc. (LTI), or by its service subsidiary, Service-to-Industry Inc. (STI). The Company performs its work utilizing detention facility inmates, under the guidelines of the Prison Industry Enhancement Program (''PIE Program''). The PIE Program, a federal program created by Congress in 1979, is designed to rehabilitate, educate and train inmates, and, thereby, provide them with marketable skills, through their employment in private-sector industry.
For further information contact Kenneth H. Smith or John P. Brocard at (770) 565-4311 or visit the Company's web site at usxx.com.
Certain statements in the release contain ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as ''may,'' ''will,'' ''expect,'' ''estimate,'' ''anticipate,'' ''believe,'' ''target,'' ''plan,'' ''project,'' ''continue,'' or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management's plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect, the Company's financial performance and could cause actual results for 1998 and beyond to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. |
