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ADUDDELL INDUSTRIES, INC.
ADUDDELL ROOFING AND WATERPROOFING, INC.
ADUDDELL RESTORATION SERVICES DIVISION
ENVIRO & EMERGENCY MANAGEMENT SERVICES (E2MS) DIVISION
"SAFE HARBOR" STATEMENT
This presentation contains forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
information of a non-historical nature and may be affected by risks and
uncertainties which are inherent in the Company's business and beyond the
ability of the Company to control. Such risks and uncertainties could cause
actual results to differ materially from those anticipated. Accordingly, these
risks are qualified in their entirety by the cautionary language contained in
the Company's filings with the Securities and Exchange Commission.
BUSINESS OVERVIEW
ADUDDELL INDUSTRIES
ADUDDELL INDUSTRIES, INC. (ADDL.OB) IS A LEADING NATIONAL COMMERCIAL
PROVIDER OF:
o Roof repair, maintenance and construction
o Concrete restoration and waterproofing services
o Disaster consequence planning and consulting as well as response
and recovery services
ADUDDELL ROOFING & WATERPROOFING
Aduddell Roofing was founded by Tim Aduddell in 1976.
o Registered in all 50 states as well as the Virgin Islands and
Puerto Rico
o Only publicly traded roofing contractor
o Ability to source labor in all markets
- National network of sub-contractors
- Roofing and waterproofing union
EXPERTISE AND EXPERIENCE IN SPECIALIZED CATEGORIES
o Governmental and military facilities
o Manufacturing and distribution
o Building management
o Hospitality
o Education
o Retailing
o Medical Centers
ADUDDELL ROOFING & WATERPROOFING
EXPERIENCED DISASTER RESPONSIVENESS
o Installed 33 million feet of temporary roofing in 54 days after
Hurricane Katrina
ADUDDELL STANDING SEAM AND METAL DIVISION
o The National Roofing Contractors Association 2004-2005 survey:
Standing seam business category roofing industry's fastest
growing segment
ADUDDELL ROOFING & WATERPROOFING
NATIONAL ASSET MANAGEMENT RESOURCE
Utilization of national roof asset management programs and group
purchasing alliances:
o Best value products and services
o Complete roof analysis reports
o Controlled facilitates maintenance oversight
CORPORATIONS AND GOVERNMENTAL AGENCIES
o U.S. Communities Government Purchasing Alliance
o Graybar Electric
o U.S. Postal Service
o Anheuser-Busch
Paradigm Shift: Shift from local roofing resources to large national
professional roofing companies.
ADUDDELL RESTORATION DIVISION
AGING INFRASTRUCTURE DEMAND
The country's aging buildings, bridges, and highways are creating
unprecedented government and private industry demand for:
o Structural repair
o Concrete restoration
o Waterproofing
Concrete is a primary element of commercial construction.
Trend to restoring America's infrastructure (e.g., new NY Facade law,
similar laws nationwide).
Paradigm Shift: Swing from submissive recognition to actively
responding to restoring the crumbling national infrastructure, both
public and private.
ADUDDELL RESTORATION DIVISION
RECENT RESTORATION PROJECTS
o Hertz, JFK Airport, NY
o Renaissance Hotel, White Plains, NY
o Black Street Parking Garage, Rock Hill, NC
o Fairview Southdale Hospital, Edina, MN
o Midwest Plaza, Minneapolis, MN
Once working with a client, there are synergic opportunities for other
Aduddell business units' services.
ENVIRO & EMERGENCY MANAGEMENT SERVICES (E2MS)
SPECIALIZED DISASTER RESPONSE EXPERTISE IN:
o Preparedness
o Response
o Recovery
o Mitigation
The E2MS team has the strategic ability to plan and execute the
required disaster responsiveness, and to quickly mobilize a responsive
infrastructure that will meet and exceed client requirements.
E2MS is designed to maximize the overall breadth of specialized
resources and services required in pre-event preparation and response
to disasters (including hurricanes, earthquakes, tornadoes, floods,
and fires).
Paradigm Shift: Change in disaster consequence management from
after-the-fact recovery services to pre-disaster planning consultation
services.
ENVIRO & EMERGENCY MANAGEMENT SERVICES (E2MS)
Recognition by public and private sectors that emergency planning must
be done before a potential catastrophic event happens. Post Katrina -
major companies and public agencies demand disaster consequence
planning resources.
This industry-leading organization is realized through E2MS senior
leadership as well as leveraging the relationships and expertise of
our disaster consequence partners.
These partners include the following premier firms:
o James Lee Witt Associates, LLC (JLWA), with unrivaled experience
and hands-on knowledge of public safety, disaster mitigation,
continuity of operations, and emergency management issues.
"Mitigation is the key to lessening the impact of future disasters."
JAMES LEE WITT
Remarks to Western Governors Conference
November 9, 2005
o PSI, one of the leading environmental engineering firms in the
U.S.
o LVI Services, Inc., a top disaster recovery firm that is also a
client of JLWA.
RECENT E2MS PROJECTS
o E2MS has been named an Associate Member of the Association of
Starwood Franchisees & Owners - North America. Under the terms of
the appointment, E2MS will be the exclusive representative of
ASFONA in the emergency management preparedness membership
category. E2MS President Randal Oberlag has been named an
Associate Honorary
Board Member of ASFONA - Starwood brands include: St. Regis Hotels &
Resorts, The Luxury Collection, W Hotels, Westin Hotels & Resorts, Le
Meridien, Sheraton Hotels & Resorts, and Four Points by Sheraton.
"Our dialogue with E2MS frankly re-opened our eyes and reminded us of
the valuable nature of this important service to the hotel industry."
JOHN SHINGLER,
PRESIDENT, ASFONA
o National luxury hotel chain with 47 locations.
UNIQUE STRENGTHS
o Long-standing blue chip customer list
o Highly experienced management team
o Strong in-house marketing capabilities
o Successfully competes nationally in multiple markets for large
contracts
o Recurring revenue business model
o Industry-leading safety performance record (EMR rating: 2005:
0.58)
o $40,000,000 bonding capacity
o Cross-selling between divisions
o Leveraging strategic relationships:
"Excellence in project execution is best marketing effort. Securing
repeat work is least costly alternative."
GROWTH STRATEGY
ORGANIC GROWTH
Further penetration of commercial roofing and emergency services
markets:
o Proactive marketing plan
o Increased business development and marketing resources
o Alliance-based business initiatives
o Larger and better trained sales force
ACQUISITION GROWTH
o Complementary business combinations
o Targeted market-specific companies
o Profitable, stand-alone
o Good reputations
o Leveraged growth between divisions
o Complementary category diversification
MARKET OVERVIEW
ROOFING INDUSTRY REVIEW
o Industry sales: $30.18 billion
o Roofing contractor firms: 30,000
o Projected growth, 2002-2012: 18.8%
o No company has 1% share of market
RESTORATIONS INDUSTRY REVIEW
o Volume of in-place concrete: 9 billion cy (cubic yards)
o Age of most of the concrete: >20 years
o Total cost for repair, rehabilitation, etc.: $18-$21billion/year
Source: NRCA, FMI, Reed, Strategic Development Council, "Vision 2020:
A Vision for the Concrete Repair Protection & Strengthening Industry
DISASTER CONSEQUENCE INDUSTRY REVIEW
o Natural disasters are happening more often, and having an ever
more dramatic impact on the world in terms of economic costs.
CLIMATE AND WEATHER DISASTERS U.S., 1980-2005*
DISASTER NUMBER OF NORMALIZED
TYPE EVENTS DAMAGES (BIL.)
Tropical Storms/Hurricanes 25 42.3% $222
Non-Tropical Floods 12 19.4% $ 55
Heatwaves/Droughts 10 16.2% $144
Severe Weather 7 11.3% $ 13
Fires 6 9.6% $ 13
MOST COSTLY EARTHQUAKE DISASTERS, U.S., 1906-2005*
DISASTER NUMBER OF NORMALIZED
TYPE EVENTS DAMAGES (BIL.)
Earthquakes 11 $155
* In 2005 Dollars
Sources: Centre for Research on the Epidemiology of Disasters, UN's
Bureau for Crisis Prevention and Recovery, Feinstein International
Famine Centre, Tufts University, NOAA's National Climatic Data Center
FINANCIAL OVERVIEW
o Recent Stock Price $0.83
o Shares Outstanding 82 million*
o Long Term Debt $146,000
o Working Capital $9 million
o Cash $2 million
o Bonding Capacity $40 million
*Fully diluted
Information as of June 30, 2006
FINANCIAL SUMMARY & PROJECTIONS
SEGMENT REVENUES & PROJECTIONS
- -------------------------------------------------------------------------------------------------------------------
2003 2004 2005 2006 Projected with
Acquisitions
(Pro Forma)
- -------------------------------------------------------------------------------------------------------------------
Aduddell Roofing $16,185,047 $17,216,772 $17,045,347 $45,000,000
- -------------------------------------------------------------------------------------------------------------------
Restoration Division $2,338,712 $4,636,112 $20,000,000
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Emergency Services $3,124,767 $10,611,590 $42,181,798 $10,000,000
- -------------------------------------------------------------------------------------------------------------------
TOTAL $19,309,814 $30,167,074 $63,863,257 $75,000,000
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FINANCIAL STRENGTH
INVESTMENT HIGHLIGHTS
- ------------------------------------------------------------------------------------------------
Close Enterprise Value/
Aduddell Industries and Price EBITDA Price/Earnings
Comparables Overview 10/18/06 LTM LTM
- ------------------------------------------------------------------------------------------------
Aduddell Industries, Inc. $0.83 3.9x 6.5x
- ------------------------------------------------------------------------------------------------
Median 8.6x 13.8x
- ------------------------------------------------------------------------------------------------
Mean 10.6x 20.2x
- ------------------------------------------------------------------------------------------------
High 27.6x 45.7x
- ------------------------------------------------------------------------------------------------
Low 3.9x 5.2x
- ------------------------------------------------------------------------------------------------
MANAGEMENT STRENGTH
TIM ADUDDELL: Chairman and COO of Aduddell Industries. He also serves as
Chairman and CEO of Aduddell Roofing & Waterproofing, which he founded in 1976.
Under his leadership, integrity, quality and safety have been the hallmarks of
Aduddell, which has enabled it to become a recognized national industry leader.
He is especially well known for his field-based leadership in disaster
consequence response management.
RON CARTE: President and CEO of Aduddell Industries, has more than 30 years of
senior-level management experience in banking, finance and corporate management.
Mr. Carte has served as Chairman of a large regional banking institution, and
has been a board member of the American Bankers Association. In addition, he
previously headed a large general contractor company.
DAVID W. ADUDDELL: Vice-Chairman and Director of Corporate Development for
Aduddell and its subsidiary business units. He is responsible for mergers,
acquisitions, integrating acquisitions, strategic corporate planning, marketing,
and major accounts programs. Three companies Mr. Aduddell has managed have
received prestigious awards as fast-growth organizations.
REGGIE COOK: Chief Financial Officer for Aduddell. Mr. Cook has more than 25
years of senior financial management experience in large and small cap publicly
traded companies. His financial, regulatory, acquisition and business planning
experience enable Mr. Cook to provide Aduddell with a strong financial
foundation to support its long-term growth plans.
RANDAL K. OBERLAG: Divisional President E2MS business unit. Mr. Oberlag has
years of high-level, domestic and international environmental management
experience. He has over 30 years of legal, engineering, executive management and
consulting experience in the government and private sector. He holds a B.S. in
Civil Engineering from Columbia University, a Juris Doctorate from the
University of Arkansas at Little Rock and a B.A. in Physics.
NEIL JOHNSON: Director of Strategic Planning & Marketing. His background
includes advertising agency account management positions in New York, Atlanta
and Los Angeles with three of the world's largest advertising agencies:
McCann-Erickson, Foote Cone & Belding and Ogilvy & Mather. He also headed a New
York-based marketing consulting firm that counted 35 of the top 50 Fortune 500
companies as clients.
BOBBY MURCER: Corporate Spokesperson. Mr. Murcer, one of the most popular sports
personalities, has been retained to introduce Aduddell to senior corporate
executives in targeted companies in New York and nationally. For five decades,
whether as a star centerfielder for the New York Yankees, or in the broadcast
booth as an announcer, Bobby Murcer has exuded class, charisma, personality and
ultimate professionalism. Mr. Murcer is one of the best known members of the YES
Network broadcast team. Over his broadcasting career, he has been recognized for
his excellence, winning three Emmys.
MAJ. GEN. STANLEY G. GENEGA (RET.): Outside Board Member. He retired from the
U.S. Army Corps of Engineers after attaining the rank of Major General, U.S.
Army. He was the Chief Operating Officer of a $4 billion per year agency with
27,000 employees and 900 locations in the United States.
TOM PARRISH: Outside Board Member. He has been the president of Parrish
Interests, a real estate and investment firm, since 1999. He serves on the board
of directors and the audit committee of Aquis Communications Group, Inc. and
First National Bank of Oklahoma.
JERRY WHITLOCK: Outside Board Member. He is the Chairman and owner of Whitlock
Packaging Corporation. The company has a total of 1,600,000 square feet in all
facilities and employs more than 1,000 production and management personnel. Mr.
Whitlock is a valued advisor in the areas of strategic planning and financial
relations for Aduddell.
WHY ADUDDELL? INVESTMENT HIGHLIGHTS
o Sharp Revenue and Net Income Growth
o Large and Growing Market
o Growth Strategy Leverages Core Strengths
o Diverse Recurring Revenue Sources
o Top-Tier Client List
o Financial Strength
- Working Capital
- Virtually Debt Free
o Management Experience
Aduddell Industries, Inc.
1601 NW Expressway, Ste. 1500
Oklahoma City, OK 73118
t 405.810.2969
f 405.840.2863
CONTACT:
Reggie Cook, Chief Financial Officer
reggie.cook@aduddell.com
www.aduddell.com
(C) 2006 Aduddell Industries, Inc. All rights reserved. Written permission must
be secured from Aduddell Industries, Inc. to use or reproduce any part of this
document.
Published in Oklahoma City, Oklahoma by Aduddell Industries, Inc. Printed in the
United States of America