Charys Holding Company, Inc. Signs Letter of Intent to Acquire One of the Largest Disaster Remediation and Services Firms in the U.S. PR Newswire - May 03, 2006 12:25
ATLANTA, May 3, 2006 /PRNewswire-FirstCall via COMTEX/ -- Charys Holding Company, Inc. ("Charys") (OTC Bulletin Board: CHYS.OB), today announced that it has entered into a Letter of Intent ("LOI") to acquire C&B Services ("C&B") of Houston, Texas ( http://www.candbservices.com). C&B's blue-chip client base includes Wal-Mart, Chevron-Phillips Refinery, SunTrust, Homeland Security, JCPenney, and the Naval Hospital (Pensacola), among others. The closing of the acquisition is subject to the execution of a definitive agreement and a number of contingencies.
Founded in 1995, C&B is a leading national provider of recovery, restoration and rebuilding services and has established itself as one of the nation's largest restoration companies. The company recently played a leading role in providing restoration and recovery services in Hurricanes Rita, Wilma and Katrina, providing emergency planning, coordination and response services to the affected areas. C&B is a network member of Disaster Kleenup International, a cooperative business network of the top independent restoration companies across North America. The company has reported unaudited gross revenues of $244 million and pre-tax profit of $80 million for the calendar year ended December 31, 2005.
"The acquisition of C&B Services will catapult Charys into the disaster recovery and restoration services industry as an elite player, building on the services our subsidiaries CCI and Viasys provided in the cleanup effort after the impact of last year's hurricane season," said Billy V. Ray, Jr., Chairman and CEO of Charys. "Additionally, this deal will open up significant organic growth opportunities for our Integrated Infrastructure Services subsidiaries Viasys, Method IQ and CCI, as well as serving to complement the services offered under the Charys "build-to-suit" cell tower strategy by the Ayin Holding Company subsidiary.
"Charys is very bullish about the synergistic growth opportunities that C&B brings to the table," continued Ray. "Together with its family of companies under the Charys umbrella, Charys becomes a more complete solutions provider, offering Integrated Infrastructure Development Technology Implementation and Disaster Recovery Support Services to the Data Network market, with immediate expansion into new market segments that will pave the way for the opportunity to realize increased revenues, larger profits and an expanded customer base."
Troy Crochet, President of C&B Services stated, "With the acquisition of our company by Charys, C&B will be able to accelerate our entry into the reconstruction segment of the Disaster Recovery Market, which is the natural evolution of C&B's business strategy. The additional resources, services and experience of the Charys subsidiaries will not only fuel our organic growth, but provide us as well as the Charys subsidiaries a larger customer base in which to develop market opportunities."
The effects of last year's hurricane and recovery and restoration work, in addition to new projects underway, offer tremendous growth prospects for C&B Services, which was recently named by Inc. Magazine as one of the 500 fastest growing private companies in America. Upon closing this acquisition, Charys Holding Company, Inc. expects to have an approximate expected, annual consolidated run rate of $350 million.
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i've been in it big since about 8.50. Heres a Q & A article from ihub. The C & B aquisition is done now (this article was from before that)
quote:CHYS Q&A in answer to another investor's questions on CHYS iHub board:
After C&B acquisition, what's next?
More details about C&B contracts, with whom and for how much. They probably would not divulge any of the work in the pipeline for C&B until after it is closed.
Key role in rebuilding New Orleans. More contracts for C&B and other CHYS subs like Method IQ & Viasys.
Building more cell phone towers by sub CCI.
Major growth for all subs above. I suspect C&B may be able to double its revenues rapidly to half a billion.
More and maybe even bigger acquisitions done at increasingly better less dilutive terms as share price soars. CHYS will be able to leverage themselves from current $400M revenues with C&B to billion dollar company rapidly. They are doing it with accretive power that adds to shareholder value each time they make an acquisition which some companies do not do well. CHYS does it the best I've seen. This will be very exciting.
In the next month. Probably will not reflect C&B impact. That will be in quarterly filed in early Fall.
Realistic Share Price Targets?
$15, maybe more, in June with C&B acquisition closed soon.
$20, maybe more, during Summer or Early Fall at latest.
$25-40 by year's end is EPS is over $1.50 per share and remains steady or growing.
$40-80 next 18 months if acquisition strategy and/or growth of subs pushes EPS to $2 or more.
What are the Risks?
With C&B included, there are probably almost no longer term risks under $15 a share regardless of how the stock trades for the next few weeks.
Will CHYS Expand Outside the U.S.?
No one knows of course, but I think this is a very U.S.-centric company right now. I think C&B will necessarily make them want to focus on the very large rebuilding opportunities in the Southeastern U.S. for now. They will be building cell phone towers in the States. Their subs are already working for the defense department. I see this as a more U.S. based business for now.
Why Don't More People Know About This Stock?
CHYS took the world by surprise. They've accomplished more in six months than most OTC companies ever achieve and they did it in record time. Most who trade with OTC companies are naturally skeptical and they rarely ride a stock to the top because they are always taking profits before somebody else dumps on them.
I told people to keep averaging UP into CHYS the past three months and that remains the correct investment strategy here. Most never listen. They don't spread the word because they go off looking for the next new piece of meat. But CHYS has gone up due to smart money buying and holding and that will only increase. CHYS may not be well known until it is $25 a share because it is going there quite fast in my opinion.
Are there already Institutional Investors in CHYS?
I don't know about pension or well known mutual funds, but there are Wall Street firms invested here. Go back reread the recent PR about the retirement of Highgate shares to see who is involved. They are big players. They bring in big buyers.
Anyone investing in it, please familiarize yourself with its charts from the past few days. MMs love to shake this one and make it drop in price, only to shoot back up even higher a few minutes later or at the end of the day. (don't be dumb enough to fall for it)
ATLANTA, Jun 12, 2006 (BUSINESS WIRE) -- Charys Holding Company, Inc. ("Charys") (CHYS) announced today that it has filed an application to become listed on the NASDAQ Capital Market. It is anticipated that listing on the NASDAQ Capital Market will be initiated within six to eight weeks. Charys, with 19.4 million shares outstanding, has a market cap of approximately $194 million.
Charys' Chairman and Chief Executive Officer, Billy Ray, Jr., commented that the rapid growth of Charys over the past twelve months warrants the move to the NASDAQ Capital Market. "Charys has exhibited tremendous growth in nearly every measurable way, driving our fundamentals beyond NASDAQ listing requirements. This expansion, which today positions Charys as a complete solution provider to the business services segment of the greater infrastructure market, has been achieved through a strategy of disciplined organic development and strategic synergistic acquisitions. We believe listing on the NASDAQ Capital Market will provide greater visibility for Charys' stock and will improve the flow of information to our shareholders and potential investors as we pursue this strategy," Mr. Ray said.
About Charys Holding Company, Inc.
Headquartered in Atlanta, Georgia, Charys Holding Company, Inc. (OTC Bulletin Board: CHYS.OB) is a publicly traded company focusing on the fragmented and underserved segment referred to as The Integrated Infrastructure Services Segment. This segment varies widely in scope, but is fundamentally focused on upgrading the underpinning, infrastructure, and back office operations of the telecommunication, cable, electric, and Internet industries serving consumers, businesses and government entities. Charys' principle strategy is to acquire, through mergers and acquisitions, companies that support this underserved segment. Charys subsidiaries include: Viasys Services, Inc, Personnel Resources of Georgia, Inc., Method IQ, Inc., Charys Technology Group, Inc., CCI Telecom, Inc., and Ayin Holding Company, Inc. For more information about Charys visit http://www.charys.com . Posts: 345 | Registered: Apr 2006
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ended the day at 9.46. It seems like this one is being manipulated by MMs, except no one is being scared into panic selling. Each time it dips, the low of the day is a little higher than last time it happened.
This is a great long term investment, theyre moving to nasdaq soon, it has plenty of profits and will be getting even more with hurricane season starting. If you want to get in, now is a great time.
I'm not even good with charts and i completely predicted the movement today. If you're not the long term type, this is great for flippers too! Its very easy to figure out what its lows are. I've given plenty of warnings, so if you miss some really predictable flips, its your own fault! GLTA
Posts: 345 | Registered: Apr 2006
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quote:Charys Holding Company, Inc. Subsidiary Receives Louisiana Contract
June 14, 2006 09:49:23 (ET)
ATLANTA, June 14, 2006 /PRNewswire-FirstCall via COMTEX/ -- Charys Holding Company, Inc. ("Charys") (CHYS, Trade) announced today that its subsidiary, Crochet & Borel Services, Inc. ("C&B"), a leading national provider of recovery, restoration and rebuilding services, has received a contract naming it the sole provider of restoration and remediation services for all 75 schools in Calcasieu Parrish of Southwest Louisiana.
In the aftermath of Hurricane Rita, which struck the region in 2005, no less than six restoration contractors were hired to repair the nearly $25 million in damages sustained by the Calcasieu school system. However to be better prepared for the predicted active hurricane season and other potential disasters at the outset of 2006 the School Board decided to single out one company capable of providing the diverse range of services that would be required if any or all of the schools in the Parrish were affected by a catastrophic event.
The contract was awarded to C&B because of its excellent reputation exemplified by its work with other school systems and universities as well as its successful completion of government contracts related to last year's hurricanes. C&B's $80 million hurricane Katrina cleanup project in St. Bernard Parish last year demonstrated its range of capabilities. Battling tons of marsh muck, poisonous snakes and alligators that had invaded all 22 of St. Barnard's schools, the company successfully completed the work to have the schools up and running by the November 2005 deadline.
Previously, approximately 25 percent of C&B's revenues came from government contracts, 65 percent from commercial clients and 10 percent from other areas. In 2006, with this and other recent contracts, the revenue mix is expected to change to approximately 40 percent government, 50 percent commercial and 10 percent "other."
C&B President Troy Crochet said the Calcasieu project encompasses more than three times as many schools as the St. Bernard project. "In addition to teachers and school system workers, more than 30,000 students attending Calcasieu schools could be disrupted by another major storm," commented Crochet. "We already have consulted with the School Board about logistics, including the command post, communications, generators, and on-site contacts. With those bases already covered, C&B can commence emergency operations quickly in any event, whether it involves one school or the entire system."
Billy Ray, Jr., Charys' President and Chief Executive Officer, commended the Calcasieu School Board for aggressively addressing potential disasters by bringing in C&B before a problem occurs. "We're gratified that the Calcasieu school system chose C&B to play such an important role in its enhanced preparedness program," said Ray. "I believe C&B's proven reliability and its capacity to bring massive amounts of equipment, fuel and manpower to bear in a disaster situation were major factors in the Board's decision. With the addition of C&B's existing and expanding client base, Charys' other subsidiaries, CCI-Telecom, Inc. (CCI), Viasys Services, Inc. (Viasys), Method IQ, Inc., as well as the "build-to-suite" cell tower services offered by our Ayin Holding Company, Inc., can provide a complete solution for this client base that allows for nearly any eventuality."
About Charys Holding Company, Inc.
Headquartered in Atlanta, Georgia, Charys Holding Company, Inc. (OTC Bulletin Board: CHYS.OB) is a publicly traded company focusing on the fragmented and underserved segment referred to as The Integrated Infrastructure Services Segment. This segment is fundamentally focused on environmental remediation and on upgrading the underpinning, infrastructure, and back office operations of the telecommunication, cable, electric, and Internet industries serving consumers, businesses and government entities. Charys' principle strategy is to acquire, through mergers and acquisitions, companies that support this underserved segment. Charys subsidiaries include: Viasys Services, Inc., Personnel Resources of Georgia, Inc., Method IQ, Inc., CCI Telecom, Inc., Ayin Holding Company, Inc. and Crochet & Borel Services, Inc.
(On June 5, 2006, Charys acquired 49% of the outstanding shares of C&B pursuant to an agreement which provides that upon each party meeting certain customary closing conditions, including obtaining clearance or notice of early termination from the U.S. Department of Justice or U.S. Federal Trade Commission under the Hart-Scott-Rodino Antitrust Improvements Act C&B will sell to the Company the remaining shares of C&B.)
NOTE: The names of actual companies and products mentioned herein may be the trademarks of their respective owners.
Some statements in this release, including statements regarding management's expectations for future financial results and access to capital markets, are forward-looking statements. Investors are cautioned that these forward-looking statements regarding Charys Holding Company, Inc., its operations and its financial results involve risks and uncertainties, including without limitation risks of accessing capital markets on terms acceptable to Charys, downturns in economic conditions generally and in the telecommunications and data communications markets; risks in product development and market acceptance of and demand for Charys products; risks of failing to attract and retain key managerial and technical personnel; risks associated with competition and competitive pricing pressures; risks associated with investing in new businesses; risks related to intellectual property rights and litigation; risks in technology development and commercialization.
Company Contact: M. Ralph DeLucia Vice President - Investor Relations Charys Holding Company, Inc. 678-443-2307 Fax: 678-443-2320 rdelucia*charys.com or Corporate Evolutions, Inc. Investor Relations: Fred Lande 516-482-6565 Fax: 516-482-6099 info*corporateevolutions.com SOURCE Charys Holding Company, Inc.
M. Ralph DeLucia, Vice President - Investor Relations of Charys Holding Company, Inc., +1-678-443-2307, or Fax, +1-678-443-2320, or rdelucia*charys.com; or Investor Relations, Fred Lande of Corporate Evolutions, Inc., +1-516-482-6565, or Fax, +1-516-482-6099, or info*corporateevolutions.com http://www.prnewswire.com Copyright (C) 2006 PR Newswire. All rights reserved.
Charys announces another new aquisition. Price shoots back up.
quote:Charys Holding Company, Inc. Announces Acquisition of Digital Communications Services, Inc. Thursday June 15, 11:36 am ET
ATLANTA, June 15 /PRNewswire-FirstCall/ -- Charys Holding Company, Inc. ("Charys") (OTC Bulletin Board: CHYS - News) announced today that it executed a definitive agreement on June 12, 2006, whereby it has acquired all of the common stock of Digital Communications Services, Inc., ("Digital"). Digital, based in Tampa, Florida, will operate as a wholly owned subsidiary of Charys.
Digital offers a full package of telecommunications infrastructure services as well as network operations and maintenance solutions. It provides turnkey services under Master Service Contracts to customers such as SBC Communications, AT&T, BellSouth and Comcast. Specifically for SBC Communications, Digital is currently working on significant projects in large geographic areas of Texas and Oklahoma in connection with SBC's fiber to the home (FTTH) project, which is expected to continue over the next five years. In addition, Digital is working in affiliation with BellSouth to upgrade and restore the communication networks for the public and parochial school systems in New Orleans.
Billy Caudill, President of Digital, said, "The acquisition by Charys is a great fit for both companies. We expect that our operations in Texas and Oklahoma will integrate perfectly with the already expansive operations of Charys in that geographic region, particularly with respect to the cross- utilization of project managers, facilities and equipment. I expect that such factors will contribute significantly to reducing operating costs and improving gross margins for both companies."
Mike Oyster, Vice President for Charys, added, "We look forward to the significant revenue growth that Digital is expected to provide over the next couple years. Digital is positioned well to take advantage of the opportunities provided by both the pending merger with BellSouth and the tremendous amount of capital being spent by SBC/AT&T on its FTTH project, particularly in the Texas area."
Commented Billy V. Ray, Jr., Chairman and CEO of Charys, "With the strategic acquisition of Digital, Charys has taken another step in becoming a complete service provider to its growing customer base and has further established its footprint in the Southeastern and Western United States."
Details regarding the acquisition and purchase price may be found in the 8-K report to be filed by Charys.
great day for CHYS. Volume is up with news of a new aquisition. Went from 8 to 9.53. I have a feeling this is a start of its next bounce upward. Last time it hit 10.87, this time will most likely be more. Check out the chart.