More than 20 million dollars in additional contracts
VIENNA, Va., June 27 /PRNewswire-FirstCall/ -- The Allied Defense Group, Inc. (AMEX:ADG) reports that its new ammunition services sector produced an additional $20M in new contracts with Central Asian and South American customers.
ADG further reports that $70M representing unfunded backlog has been funded. Upon receipt of an appropriate export license and performance bond (expected next month) the contract will be added to ADG's backlog.
Major General (Ret) John Marcello, Chief Executive Officer of the Allied Defense Group stated, "Once we have the appropriate export licenses and performance bonds in place, these new announcements will bring ADG's funded backlog to an all time record of more than $250M. To understand the significance of this backlog one should note that it is sufficient to keep our largest subsidiary, MECAR S.A., operating profitably through 2010. In fact, the Company is well-positioned to continue to increase revenue and income in the coming years.
"The new orders evidence a continued diversification trend within ADG, for example Central Asia is a new market for us, and Explosive Ordnance Disposal (EOD) demining explosive kits represent a new product line.
"I want to reiterate that the fundamentals of our business are strong as demonstrated by recent solid growth to both our top and bottom lines. Moreover, we expect this trend to continue.
"It is unfortunate that our stock has recently come under pressure coinciding with the redistribution of shares by one of our largest shareholder activist hedge funds. I believe there is real value in this company and that we are making meaningful progress on all fronts to return that value to our shareholders." "For example, Allied had revenue of $30.1 million in the three months ended March 31, 2008, which was 219% higher than its revenue in the same period of 2007. We also increased revenue by 9% over fourth quarter revenue of $27.6 million. We continue to ramp up our production in order to exploit ADG's extraordinarily large and growing backlog.
"We have reduced our debt, bolstered liquidity, disposed of certain non- performing subsidiaries and opened up new markets. Cost reductions are a major management focus.
"Our new ammunition services sector is growing at a very noteworthy rate. Centered on MECAR USA, we have accumulated a total of over $40 million in service-associated contracts so far this year and we feel confident that the outlook for the remainder of the year is equally bright.
"We have also built new partnering and joint venture relationships. Our joint venture in Jordan, for example, will establish MECAR on a third continent, aimed at new markets with new products.
About The Allied Defense Group, Inc.
The Allied Defense Group, Inc. is a diversified international defense and security firm which: develops and produces conventional medium caliber ammunition marketed to defense departments worldwide; designs, produces and markets sophisticated microwave security systems. For more information, please visit the Company web site: http://www.allieddefensegroup.com/.
Certain statements contained herein are "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.
For more information, please visit the Company web site: http://www.allieddefensegroup.com/ For More Information, Contact:
Jim Drewitz, Investor Relations
830-669-2466
DATASOURCE: The Allied Defense Group, Inc.
CONTACT: Jim Drewitz, Investor Relations, +1-830-669-2466, for Allied Defense Group, Inc.
Web site: http://www.allieddefensegroup.com/
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