PHOENIX, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Social Detention Inc., (OTC Pink: SODE) (the “company”) is a security and infrastructure company. President of the company, Robert Legg, talked with Stock Day’s Everett Jolly about the infrastructure market and new opportunities that lay ahead.
“We do perimeter security, that’s what makes any structure secure,” started Legg. “A courthouse, a police station, any publicly owned building that needs security cameras, hardware, doors, items like that. On infrastructure, that’s basically everything you see. That’s roadways, that’s pipelines, that’s cement, that’s asphalt. It also ties into security a little bit because you have cameras on freeways. So, that’s our basic two core areas.”
Legg went on to say their customers are typically public entities like the government, county, local, state, cities and towns. He said they focus on public works.
“That’s good because it does two things, one, we know we are going to get paid. It’s public money. Two, traditionally there’s a pipeline between because every city, town, and entity has a budget,” he explained. “To keep people driving around town you have to do infrastructure. It’s a good steady source for us on the infrastructure side.”
Legg told Jolly that on the security side of the company there is also steady revenue, because as populations increase so do the security needs. He explained that some of the work that they do is incarceration facilities, so more people in the U.S. percentage wise translates to more people in jail.
“We have two solid models. On the infrastructure side it’s a unit model, we are paid for what we do. On the security side it’s usually a lump sum bid.”
Jolly then said he read that construction was stagnate, so he asked how Legg grows and business and where he sees it going from here.
“Yes, it was stagnate,” said Legg, “the few that survived, like myself, were very smart and basically we did work at a profitable margin. There was a lot of companies that went out there and just did work at a loss to survive. What’s different now is that there are fewer players.”
Legg said the two downturns, the last one being in 2008, weeded out the weaker companies and only let the strong stay in business. He said now, there are fewer people going after work and there is an abundance of work.
“The local municipalities, that being the cities and at some levels, the state, they know that a big influx is coming in. They see that the roads they drive on, the major interstates, need to be repaired and infrastructure needs to be done also at water treatment facilities. So, they know it’s coming. The federal government takes a while, but when it comes it’s a lot of money,” explained Legg.
He went on to say that local municipalities want bids early because companies like his will have higher prices down the road. He says they are seeing a lot of local projects. Jolly then noted the company has already done $2 million to $3 million in revenue for 2018 and asked Legg how he gets his leads.
“We have two primary areas where we procure work. As a prime contractor, that means we get the whole contract or we pursue it as a subcontractor. That’s where we would act underneath the prime contractor. So, we could be a part of the contract with somebody else,” said Legg.
He said their leads come a variety of sources, the two major being, the Statewide Builders Exchange and Caltran, which is the California Transportation Department. Caltran is where Legg sees tremendous growth potential for Security Detention, Inc.
“Caltran does what’s called ‘You work 100%, you’re paid 100%’ that means if I submit a bill of $1 I get paid $1. Most cities and governments, they’ll withhold 5 to 10%, that means you bill for $1 you get paid 90 cents. That’s called retention. So, we like Caltran because they pay you for everything that you’ve done,” said Legg.
Jolly then ask about his plans for M&A, Legg said they are always actively engaged and looking for companies with a specialty niche.
“For example, in infrastructure, right now, we are looking at companies that do rapid setting concrete,” explained Legg. “You can go out the night before, pull out a slab of freeway, put the concrete down the same night and you are open the next day. That’s a technology that’s fairly new, we are actively seeking out concrete companies to purchase as much equity as possible.”
He went on to say they are also looking at companies that do methacrylate. That’s a material that is put over existing freeways so cars do not skid. He said those two areas are very exciting.
Legg also told Jolly that something else that was exciting for his market is what happened on election night. He said it’s going to put bipartisan issues in the forefront, one of them being infrastructure. He said just in California right now the infrastructure market is a billion dollars a month. Legg said there will be plenty of work in the business.
To hear the entire interview, listen to the Stock Day podcast: https://upticknewswire.com/featured-interview-ceo-robert-legg-of-social-detention-inc-otcpink-sode/
About Social Detention
Social Detention Inc. is a publicly traded Company (SODE) founded by Robert Legg. Mr. Legg has 20 years of Security and Infrastructure experience with a track record of taking companies from startup to multi-million-dollar revenue producers and leveraging for high return on investment. His companies have been recognized nationally by Inc. Magazine and the San Francisco Business Journal Annually as one of the Years Fastest Growing Companies. His project experience is $1.5 Billion in cumulative value.
ROBERT P LEGG
FORWARD LOOKING STATEMENTS
Except for historical information, this news release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve unknown risks, and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. Important factors that might cause such differences are discussed in the Company's filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results could differ materially from those anticipated in these forward-looking statements, if new information becomes available in the future.
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