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Message to Shareholders and Interested Investors
TUSTIN, CA -- (Marketwired) -- 07/28/16 -- Premier Holding Corporation (OTCQB:PRHL) Chairman and CEO Randall Letcavage
made the following public statement today on behalf of Shareholders and interested investors:
To All Shareholders and Interested Parties of Premier Holding Corporation:
It is my pleasure once again to address our shareholders. We at Premier Holding Corporation believe that this is the appropriate time for an update, as we have a number of events occurring simultaneously at all corporate levels, beginning with the holding company and including each of our subsidiaries.
We have engaged two different investment banks over the past few months and several consultants. Their work has helped clean up our balance sheet and build our assets which has brought us closer to our goal of being up-listed to a senior exchange. This has resulted in putting us much closer to NASDAQ net asset value requirements. These professionals have also assisted us in converting a large portion of our corporate debt and bringing additional capital to PRHL. As a result, we expect to have over $2 million of operating capital to deploy for corporate growth.
We intend to put $1 million into our newest subsidiary, American Illuminating Company (AIC), which would then allow us to engage our credit facility to buy energy and begin supplier operations. In this case, we own 100% of AIC, and because of this control, we believe we can begin to move a significant amount of our previous reseller business over to our new supplier. As we have stated before, we are confident we can move over 200,000 contracts to our supplier by December 2017. Our research shows us that similar contracts have been sold for between $200 and $1100 each. Our forecast is that the make-up of our customer contracts will create a portfolio conservatively valued between $300 and $500 per contract. At only $300 per contract, we could own over $60 million dollars' worth of contracts. With the supplier now in place, we expect our revenues to increase by 10 fold from the same sales effort that previously brought in only a commission. (As a reseller we currently book commission only. However, as a supplier we book the customers' entire energy usage, and profit from the markup on power along with retaining commissions in our reseller.) We anticipate that overall revenues will increase 10 to 12 times while profits should quadruple.
While this rollout of the supplier is very significant, our anticipated increase in revenue does not include the wide distribution of our Energy Services Portal ("ESP"). At this point, it is difficult to accurately calculate how much this will accelerate our growth. We can say, however, that we have ten resellers or more who are interested in using our portal, and we believe this, at the very least, could possibly double our projections for the supplier (AIC) in all areas, including contract acquisition, revenues, and profits. We expect to start signing up a large number of portal users from the 1,000-plus resellers in the U.S. market. They have a massive incentive to use our portal because ESP would make them more efficient, more compliant, and with all its unique cutting edge features, it will provide a tremendous sales advantage. Once they are utilizing our portal, we will incentivize them to allow us access to their commercial customers for energy efficient product sales, thus increasing our potential revenues even more.
In addition to all of this, we anticipate that between our commercial customers and the first round of resellers using the portal, that this could provide our E3 subsidiary over 20,000 prospects with a pre-existing relationship. As more resellers use the portal, this number could quickly multiply.
This brings us to E3, Energy Efficiency Experts, our subsidiary that continues to perform well with limited manpower. Our previously announced partner program should provide a nice boost in that business. However, the biggest game changer could very well be that within the next few weeks E3 will be able to roll out a shared-savings program that is more competitive than anything we have seen before. This program is expected to allow E3 customers to have all of their energy efficiency products bought for them on the basis of shared savings that rival other financing structures as they have no equipment cost or liability for any of the equipment. What this would mean for E3 is potentially a huge shift in providing energy efficiency. We may not make a 30% margin on LED sales for a hospital parking garage, but instead we would make up to 4% on the shared savings from all of their facilities. We could ultimately attract much bigger clients while creating more cross selling opportunities.
Other items of note have been disclosed in recent press releases and we will continue to update you on those items as well as all the items contained herein.
In closing I'd like to personally thank all shareholders, and particularly those shareholders who supported the change in management and our long-term growth strategy. Everything we did in the last three years is expected to culminate in greater shareholder value over the upcoming months.
Sincerely,
Randall Letcavage
,
Chairman and CEO
Premier Holding Corporation
