Market Overview

EVO's Thunder Ridge Transport Awarded $9 Million in USPS Contracts

Share:

PEORIA, Ariz., Aug. 06, 2018 (GLOBE NEWSWIRE) -- EVO Transportation & Energy Services, Inc. (EVO) (OTC:EVOA), an alternative fuel services company and emerging transportation operator, is announcing that its subsidiary, Thunder Ridge Transport, Inc. (Thunder Ridge), has been awarded three Dynamic Route Optimization (DRO) contracts with the United States Postal Service (USPS).

These awards expand Thunder Ridge's operations into three new states—California, Louisiana and Michigan. This is in addition to the nine other states it services through 13 contracts with the USPS. EVO acquired Thunder Ridge last June.

Under the three contracts, operations will include locations in Santa Clarita, CA, Flint, MI, and Baton Rouge, LA. It is estimated that the three contracts will produce revenue of $9 million annually; operations commenced on July 29th. Additionally, the new contracts will provide a larger network for the development of new transportation opportunities.

In 2014, it was announced that the USPS would look to drastically reduce their supplier base from over 4,000 contractors to less than 1,000 by 2022. As part of this consolidation effort, the USPS began implementing the DRO program, which is designed to manage fewer relationships and work with larger prime contractors who also prioritize alternative energy transportation options. As a result, it is estimated that over $1 billion in DRO contracts will come available over the next five years.

"These contract wins underscore Thunder Ridge's standing with the USPS as a compliant, efficient and flexible partner," said John Yeros, EVO's CEO. "This was a key consideration when evaluating the attractiveness of our acquisition, and we will build on these wins to aggressively bid on new opportunities in a highly fragmented, approximately $5 billion industry."

Yeros continued: "Our stated goal is to create a nationally-recognized organization of scale, strategically aligned to meet the evolving needs of the USPS. Other similar, near-term growth opportunities with Thunder Ridge, as well as an active M&A pipeline, have us well on this path."

About EVO Transportation & Energy Services, Inc.

EVO is an emerging transportation operator and next generation supplier for the United States Postal Service (USPS). It offers flexible and efficient solutions through a combination of Diesel and CNG trucks and tractors across 12 states. EVO also operates five strategically located CNG refueling stations located in Jurupa Valley, CA; Fort Worth, TX; Oak Creek, WI; Tolleson, AZ; and San Antonio, TX that accommodate class 8 trucks and trailers. For more information, please visit evocng.com.

Important Information

The statements in this press release that are not historical facts may be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "will," "may," "estimate," "continue," "anticipate," "intend," "would," "should," "plan," "expect," "predict," "could," "potentially" or similar expressions identify forward-looking statements, although not all forward-looking statements include these words. These statements involve known and unknown risks, uncertainties and other important factors, including those described in under "Risk Factors" contained in EVO's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission. Moreover, the forward-looking statements speak only as of the date they are made, and EVO assumes no obligation to update or revise forward-looking statements to reflect actual performance or results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by law.

Corporate Contact Information

John Yeros
Chief Executive Officer
JYeros@evocng.com

Investor Relations:

Liolios
Cody Slach
Tel 1-949-574-3860
EVOA@Liolios.com

View Comments and Join the Discussion!