DALLAS, Aug. 24, 2012 // PRNewswire // -- Firemans Contractors, Inc. (OTCBB: FRCN) (OTCQB: FRCN), a commercial contractor offering B2B commercial franchises and services in the pavement maintenance and parking lot maintenance industry, announced today that the company will leverage its newly launched franchise model to bid on $17 billion in TIFIA (Transportation Infrastructure Finance and Innovation Act) projects; allowing the company to possibly secure an additional profit center potentially valued in the millions per annum.
"We seemed to have initiated our franchise model none too soon," stated Renee Gilmore, CEO of Firemans Contractors. "New government initiatives are creating more opportunities for mid-sized companies like ours to secure lucrative infrastructure contracts nationwide. Using our franchise model to promote rapid expansion, we could be more readily available anywhere in the country; and possibly more competitive than larger non-franchised operators."
Firemans Contractors expects that the new highway law known as 'MAP-21' will likely expand the TIFIA by $1.7 billion over the next 24 months. According to the U.S. Department of Transportation, TIFIA, which provides credit assistance to states in the form of direct loans for infrastructure projects, will provide up to ten dollars in assistance for every dollar worth of seed money. Ray LaHood, the U.S. Transportation Secretary was noted as saying, "The $17 billion could potentially leverage another $20-$30 billion in infrastructure investment during the two-year life of MAP-21, making it the largest infrastructure loan program in U.S. history."
People close to the company suggest that this TIFIA action benefits the company in two dynamic ways. On one hand, Firemans Contractors has the ability to formidably compete with larger competitors insomuch that its smaller size and new franchise model allows for greater flexibility in bidding on contracts. On the other hand, larger companies may tend to commit their resources in seeking to be dominators of the near $30 billion governmental infrastructure build. This pursuit will further open up the mid market for Firemans Contractors to secure a greater number of the Fortune 500 companies the company already maintains as clients.
Mrs. Gilmore concluded, "The TIFIA expansion should prove to be a big win for us regardless of how the prospects of bidding for contracts evolve. If we get the opportunity to demonstrate our ability as a top rated mid-sized pavement and infrastructure maintenance company, then we've just contributed to the growth of shareholder value and confidence. If the TIFIA expansion leaves a gap in the marketplace, allowing us to more easily secure a foothold where the big guys have abandoned their post, we then again get the chance to increase the bottom line while increasing our client portfolio, growing shareholder confidence and building greater value. If both possibilities occur, then our franchise model will allow us to expand quickly, helping to ensure that Firemans Contractors continues to grow as a trusted resource in the pavement and infrastructure maintenance marketplace."
The Transportation Infrastructure Finance and Innovation Act (TIFIA) program provides Federal credit assistance in the form of direct loans, loan guarantees, and standby lines of credit to finance surface transportation projects of national and regional significance. TIFIA credit assistance provides improved access to capital markets, flexible repayment terms, and potentially more favorable interest rates than can be found in private capital markets for similar instruments. TIFIA can help advance qualified, large-scale projects that otherwise might be delayed or deferred because of size, complexity, or uncertainty over the timing of revenues. Many surface transportation projects - highway, transit, railroad, intermodal freight, and port access - are eligible for assistance. Each dollar of Federal funds can provide up to $10 in TIFIA credit assistance - and leverage $30 in transportation infrastructure investment. Pursuant to the recently enacted Moving Ahead for Progress in the 21st Century Act (MAP-21), DOT announced the availability of funding authorized in the amount of $1.75 billion ($750 million in Federal Fiscal Year (FY) 2013 funds and $1 billion in FY 2014 funds (and any funds that may be available from prior fiscal years)) to provide TIFIA credit assistance for eligible projects. Projects must meet statutorily specified eligibility criteria to receive credit assistance. The Notice of Funding Availability (NOFA), published on July 31, 2012, outlines the process that applicants must follow.
Firemans Contractors, Inc. (OTCBB: FRCN) is a full-service contractor providing professional services for commercial and government clients, offering Business to Business Franchise Opportunities. Its services include Road Improvements, Pavement Maintenance, Seal Coating, Parking Lot Striping, Pavement Marking, Asphalt Maintenance and Repair, and ADA Compliance. Firemans Contractors has completed its FDD requirements with the Federal Trade Commission and has developed franchise territories across the U.S. The company's goal is to develop hundreds of new franchise locations in the next 24 to 48 months. Firemans Contractors brings a professional value system delivering outstanding results through honorable customer relationships and repeat business. Local firefighters are supported by a portion of profits which are donated to local Firefighter Associations. For more information about Firemans Contractors, visit: www.FiremansContractors.com
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this press release. Additional information respecting the factors that could materially affect the Company and its operations are contained in its annual report on Form 10K and Form 10-Q as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statement.
Firemans Contractors, Inc.
2406 Gravel Road
Fort Worth, TX 76118
SOURCE Firemans Contractors, Inc.