ADDvantage Technologies Announces Strategic Joint Venture to Provide Deconstruction Work on Cell Towers in 13 States
March 10 2016 - 8:00AM
Expected to generate approx. $1MM in pretax
income for ADDvantage over the next year
ADDvantage Technologies Group, Inc. (NASDAQ:AEY),
today announced that, through a joint venture, the Company will
support the deconstruction work on cell tower sites across 13
states on behalf of a major U.S. wireless provider. This joint
venture is expected to generate approximately $1 million in pretax
income for ADDvantage Technologies over the next year.
The strategic joint venture, YKTG Solutions,
LLC, is with YKTG, LLC (“YKTG”). Under the terms of the joint
venture agreement, ADDvantage Technologies will own 49% of YKTG
Solutions, LLC, while YKTG will own 51%. ADDvantage
Technologies will be responsible for the financing and the
accounting for the deconstruction contract. In addition, Nave
Communications, a subsidiary of ADDvantage Technologies, will
provide warehouse storage space to stage the decommissioned
equipment on a short-term basis.
“We continue to grow our operational
capabilities and increase our scale across the U.S. to drive growth
in our telecom business,” commented David Humphrey, President and
CEO of ADDvantage Technologies. “We are proud to announce this
strategic joint venture with YKTG as it opens a new opportunity for
us in the service business. We also anticipate generating
additional revenues by processing decommissioned equipment received
from this agreement through our recycling services program, and by
selling additional equipment to this major U.S. wireless
provider, utilizing our partnership with YKTG.”
“YKTG is excited to have ADDvantage Technologies
as a strategic partner to work on our most recent multi-million
dollar award to support the deconstruction program for a major
wireless provider,” commented Roscoe C. Young II, Founder,
President and CEO of YKTG. “In addition, we hope to keep our
relationship with ADDvantage in place to cover other near-term
opportunities we expect to be awarded from other wireless and cable
providers in 2016 and 2017.”
About ADDvantage Technologies Group,
Inc. ADDvantage Technologies Group, Inc. supplies the
cable television (Cable TV) and telecommunications industries with
a comprehensive line of new and used system-critical network
equipment and hardware from a broad range of leading manufacturers.
The equipment and hardware ADDvantage distributes is used to
acquire, distribute, and protect the communications signals carried
on fiber optic, coaxial cable and wireless distribution systems,
including television programming, high-speed data (Internet) and
telephony. In addition, ADDvantage operates a national network of
technical repair centers focused primarily on Cable TV equipment
and recycles surplus and obsolete Cable TV and telecommunications
equipment.
ADDvantage operates through its subsidiaries,
Tulsat, Tulsat-Atlanta, Tulsat-Arizona, Tulsat-Nebraska,
Tulsat-Tennessee, Tulsat-Texas, NCS Industries, ComTech Services
and Nave Communications. For more information, please visit the
corporate web site at www.addvantagetechnologies.com.
About YKTG, LLCYKTG, LLC is a
certified minority business enterprise and serves the commercial
industry to include infrastructure construction projects.
YKTG's strategic approach focuses on engineering,
procurement, construction and custom design builds for a wide range
of solutions.
The information in this announcement may include
forward-looking statements. All statements, other than
statements of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
For further information
Company Contact:
Scott Francis (918) 251-9121
KCSA Strategic Communications
Garth Russell
(212) 896-1250
grussell@kcsa.com
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