Adsouth Partners, Inc. Provides Update On Genco Power Solutions Subsidiary; Genco Enters into Contracts for 23 Orders for Stand
March 01 2006 - 9:11AM
Business Wire
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.
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