Mission Ready Solutions Is More than Ready

Summary

• MRS (TSX), MSNVF (OTC), a yet largely undiscovered tactical solutions provider is quietly becoming a multi-billion dollar government contractor
• MRS (TSX), MSNVF (OTC) recently acquired Unifire Inc., a world leader in the support of our nation’s first responders.
• Since 2019, the company has announced $565 million CAD in new contract awards and has secured access to credit scalable to $100+ million USD in the short term.
• Through the Unifire network, built over 30 years, Mission Ready Solutions has strong relationships with Department of Defense (DoD), Federal Emergency Management Agency (FEMA), Defense Logistics Agency (DLA), United States Army, Navy, Marines, and Air Force.
• With a low a market cap, significant new contract awards and compelling advantages over competitors, MRS offers an attractive risk/reward ratio at current levels.
• The company has major contracts with the Defense Logistics Agency, General Services Administration, US Army Corps of Engineers and the National Security Agency.

Mission Ready Solutions (TSX.V: MRS) (OTC:MSNVF) is a company operating primarily in the defense and aerospace sector in the United States, focusing on innovation, manufacturing, and distribution of leading defense and tactical solutions for military and first responder markets.

For those unfamiliar, the company has historically worked to develop innovative products, often in partnership with United States Government agencies and various prestigious academic institutions, such as: The Department of Defense, Homeland Security, Special Operations Command, and the Massachusetts Institute of Technology (MIT). This has lead to impressive results and has been able to earn the company lucrative contracts.

Accelerating Revenue

To date, the Mission Ready Solutions has been primarily focused on laying a strong foundation to execute ambitious growth plans, but is now turning its attention to raising its public profile and showcasing its recent wins and growth trajectory to institutional investors.

These efforts were kicked off by a webcast from management last year stating that the company expected 2020 revenues to be at minimum $100 million, a recording of which is available online. The revenues for 2020 ended up being $105.1 million.

In addition, in September 2020, the company announced that they were awarded a $435 CAD million dollar contract to supply personal protective equipment for the National Emergency Stockpile. The total value of the contracts awarded was 1.2 Billion USD. These contracts were sought out by 129 bidders and ultimately awarded to 8 companies, Unifire, being one of them. The awardees will be performing the contract services in various U.S. locations through Sept. 30, 2021.

The companies are;

• Coulmed Products Group
• JL Kaya
• Health Supply US
• Maddox Defense
• Marena Group
• The Dow Chemical Co.
• Unifire
• Wise Manufacturing

Unifire was one of the companies that was not mentioned in the New York Times article detailing how the contracts were awarded to inexperienced companies as the company has been operating since 1987.

The audited year end financial statement for the year ended December 31st 2020 were $105.1 million, an increase of $83.9 million from the $21.2 million realized in the same period in 2019, a 396% increase. Mission Ready was able to increase the revenue during the year without significantly increasing expenses. To date in 2021, the company produced it’s first profitable quarter in Q1, revenues of $66.73 million with a net profit of $6.42 million. This represented a significant milestone from the company as past operational improvements and cost cutting are starting to make an impact.

“I am proud and excited to release the Q1 2021 financials showcasing the hard work and achievements of our team, and the continued success of all our activities, while maintaining a focus on reducing our operating expenditures. As mentioned in our Q4 2020 financial release, the positive trends have continued re-enforcing the company’s strategic approach as we position ourselves for new contracts and opportunities.  My vision and commitment remain on strengthening the Company’s financial position and pursuing efforts that build shareholder value.

Buck Marshall, CEO of Mission Ready, on the recent Q1 earning results.

Lucrative Government Contracts

With a long history of manufacturing the best rescue equipment available, Unifire has earned a reputation for solving some of the most difficult problems when it comes to rescue and special operations, equipment needs and supporting the war fighter on mission critical scenarios. The company has a history of achieving some of the government’s highest ratings for performance and this has propelled it to earn the trust of various government agencies.

The company is proud to hold contracts with several federal, state and local agencies including: The U.S. General Service Administration, the Defense Logistics Agency and Homeland Security. Through these contracts, Unifire is able to assist various government agencies with various products and services such as structural firefighting, aircraft/crash rescue, hazardous material response, emergency medical services, homeland security and domestic preparedness products.

Most recently, Unifire was part of a one year bridge contract for 2020 worth USD $4 billion with an end date of March 2021. The contract was awarded to prime vendors by the US Defense Logistics Agency (“DLA”). Unifire was 1 of the 6 companies eligible at the time and the only one owned by a public company to compete for orders through a DLA Special Operations Equipment (SOE) Tailored Logistics Support Program (TLSP) $4 billion USD bridge contract. Details of the contract can be found on here.

As of March 2021, the DLA has made significant changes to the Special Operations Equipment Program, awarding a 10-year, $33 billion contract to six new prime vendors as part of their 5th generation support program. Unifire was excluded from this 10 year contract but is committed to supporting the new prime vendors as a sub-contractor.

“We are ready and willing to provide subcontracting solutions to SOE prime vendors including the provision of Unifire’s Berry-compliant, in-house manufactured protective products.”

Buck Marshall on Special Operations Equipment Program

The company holds three unique General Services Administration (“GSA”) schedules with a combined procurement value estimated at $2.2 billion annually (based on 2018 figures), an aggregate of $11 billion over the term of the company’s current GSA schedules which are renewable every 5 years.

Ballistic Combat Armor

Research and development (R&D) efforts have yielded some impressive products, including the Ballistic Combat Shirt (also known by its commercial name, Flex9 Armor), which has been co-patented with the US Army and is now being rolled out to US troops for fielding. More information about the joint patent can be found here.

As a co-patent holder, the company holds the exclusive rights to license, manufacture, and distribute this product to any non-federal US entities, and customers abroad such as foreign militaries.

Access To Capital & New Relationships

For Unifire, a key benefit of being acquired by Mission Ready is access to new capital to rapidly scale the business and for MRS, they can tap into the relationships that Unifire has been able to forge since 1987. Previous company news releases have stated that Unifire has historically been limited in its access to capital, which has constrained its ability to bid competitively on orders through the DLA SOE contract and others.

To address the anticipated growth capital needs, MRS in a recent interview highlighted that it has secured a credit facility which provides immediate access to a minimum of $20 million USD, and is scalable up to $100+ million USD in the short term

Mission Ready Solutions has been providing PPE solutions as demonstrated with the reward of the $24 million contract from the Federal Emergency Management Agency (“FEMA”) At FEMA’s discretion, an additional $12,000,000 was to be awarded for a total contract value of CAD $36,000,000

The Go-To for Covid-19 PPE

In addition to supplying FEMA with CAD $24 million of PPE supplies, the company formed an independent Covid-19 response team that consisted of 15 select inside and outside company representative.

This has already proven dividends as Mission Ready Solutions teamed up with Lyft to set up the Lyft Store, a centralized place where drivers can purchase PPE equipment.. The company will manage the sale of personal protective equipment and cleaning supplies, including face masks, to drivers and passengers.

Mission Ready Solutions was also awarded a CAD $5.5 million by the Grand Traverse Economic Development (GTED) for the procurement and supply of PPE.

Most recently, a CAD $4.4 million contract awarded from the United State Department of Health and Human Services for the procurement and supply of personal protective equipment (“PPE”) for the Indian Health Service

Mission Ready Solutions is Providing Innovative Solutions

Through their Protect The Force subsidiary, Mission Ready Solutions is often tapped by the Department of Homeland Security Science and Technology to develop new technologies as demonstrated by the Ballistic Combat Shirt. This was also demonstrated by the renewable award of $199,260 for the development of energy harvesting fabric. Companies participating in the program are eligible for up to $800,000 in non-dilutive funding over four phases to adapt commercial technologies for homeland security use cases.

“Protect the Force’s proposed technology could change how first responders are able to perform during emergencies.” “A wearable, portable power source could support safety equipment and communication tools; it has the potential to improve the work of first responders across the nation.”

Melissa Oh, SVIP Managing Director

Lucrative Government Space

One of the Mission Ready Solutions largest competitor earned $2.5 billion in 2018. primarily from supplying Pentagon with military equipment, medical supplies and tactical special forces gear. Unifire and the management team are committed to tapping into this market and encourage a more level playing field whether it is through SOE or GSA contracts.

Committed Management Team

The Mission Ready Solutions team is committed to achieving the company’s high growth targets and have proven that in the last private placement funding where the management team participated. In addition to the low turnover, the insiders own approximately 22.7% of the company. The high insider ownership shows that they’re likely incentivized to build the company for the long term and suggests alignment between insiders and the other shareholders.

CEO’s Vision for the Future

In conclusion, Mission Ready Solutions is a unique largely undiscovered company poised to dramatically shakeup the sector it operates in. The company’s recent success in winning significant contract awards amounting to over $565M million CAD from $3M CAD in 2018 show that efforts to transform the Unifire business are getting traction. As such, the forward outlook looks very promising.

Through Mission Ready Solution’s fully owned subsidiary Unifire, investors can take a position in a niche multi-billion dollar market, which has until now been largely accessible only to private investments.

Disclosure: I am/we are long Mission Ready Solutions. This article was written by our staff and expresses our own opinion. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: In analyzing historical public contracting data, we have relied on the information provided from such disclosure sites to be accurate and complete. The proprietary materials we have generated based on this information are replicable from this data, assuming the proper settings and filters are being applied. For more information, please contact us at support@wealthhub.ca