HSPR - Hesperia Holding, Inc.'s CEO Issues Letter to Stockholders
Tuesday September 5, 6:00 am ET
HESPERIA, Calif., Sept. 5 /PRNewswire-FirstCall/ -- Hesperia Holding, Inc. (OTC: HSPR - News), CEO, William Nalls, addresses stockholders with an open letter regarding the current status of the company.
Dear Valued Stockholder,
As the CEO of Hesperia Holding, Inc. ("Hesperia" or the "Company"), I believe it important to address current developments at the Company, especially as it relates to our filing of financials, our management and operations, and the overall market for our products and services. While the Company's stock has endured downward pressure related to our delay in filings, the management team and employees have continued their diligent work to keep the Company's operations strong and poised for future growth.
Company Filings
On October 8, 2004 the Company completed a financing transaction with Laurus Master Fund, Ltd. At that time, the Company's management understood the transaction as a debt financing and it was accounted for accordingly. After further review, and discussion with auditors, it was determined that this transaction was more appropriately accounted for as a derivative and the Company's financials must be restated. The complexity of this derivative calculation has caused the Company to delay its filings leading to a relegation of the Company's stock to the Pink Sheets. While this delay is a significant inconvenience, it has no material effect on the operations of the company and the Company continues to maintain a strong position in the market. The Company anticipates completing the filing requirements in the coming weeks and believes that the aforementioned derivative issue has been resolved.
Management
Many of you are aware, that the company has gone through some changes in management over the last year. The founders of the Company and I believe that this has been very positive for the Company and the culture we are seeking to create. The current management team has the requisite expertise to execute the Company's business model free from the distraction of competing views on strategy and execution. I believe these changes provide a positive environment for the Company to grow.
The Market
Over the past few months, there has been plenty of news of a housing market slow-down in some parts of the country, and in some markets this is definitive. Contrary to construction market trends in other areas of the country the Company is experiencing continued demand both with new and existing customers. The "High Desert" area of Southern California continues to have strength in new home starts as it remains an affordable and convenient alternative to the more expensive residential properties in Southern California's coastal areas.
In California only 15 to 19% of the population can afford a new home, and builders are looking to build homes for that 81 to 85% of buyers who are still looking for that first home, (1200 - 1500 square feet). These same builders need to keep costs low, and Hesperia has proven itself in the market as a cost-effective leader in the design, manufacture, and transport of component building materials.
Operations
In a continued effort to expand our operations, the Company has begun to meet market demands for more cost-efficient building products through additional offerings such as wall panels and standardized wall components. This successful product expansion and continued operations is a direct result from the hard work and dedication of all our employees, who exhibit great pride in providing outstanding customer service and timely product delivery for our clients in the rapidly growing "High Desert" area.
Lastly, the Company is working with additional funding sources to outfit our new plant with state of the art equipment that will continue to lower our production costs, labor and waste, and support potential strategic opportunities as they arise. I appreciate your continued confidence in Hesperia Holding, Inc. as we seek to increase shareholder value. I will continue to keep you up to date on the Company's progress in the months ahead.
Sincerely,
William Nalls, CEO
About Hesperia Holding, Inc.
Hesperia Holding, Inc. is a holding company, operating through two wholly-owned subsidiaries; Hesperia Truss, Inc. and Pahrump Valley Truss, Inc. (hereinafter, collectively and individually, "HSPR" or the "Company"). The Company engages in the design, manufacture, and transport of roof trusses, floor joists and wall panels for residential and commercial building, primarily in the United States. The Company is based in Hesperia, California and currently has 83 employees. The Company manufactures custom trusses and floor joists and also provides custom engineering services. More recently the Company has expanded product distribution to include third-party truss, wall systems, and joist products.
Forward Looking Statements:
This press release may contain statements that constitute "forward-looking statements" as defined under U.S. federal securities laws. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "establish," "project" and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from Hesperia's historical experience and its present expectations or projections. These risks include, but are not limited to: our ability to obtain sufficient capital or strategic business arrangements to fund our operations; ability to expand our sales throughout the Western United States; actual demand of housing in the "High Desert" area of Southern California; continued demand from both current and new customers; ensuring timely filings pursuant to the SEC regulations; our ability to become an industry leader; changes in economic conditions; the competitive environment within the construction and truss industry, including actions of competitors and changes in the home and commercial construction business; our ability to capture market share; the effectiveness of our advertising and marketing programs; fluctuations in the cost and availability of raw materials or necessary services; our ability to avoid production output disruptions; our ability to achieve earnings goals; regulatory and legal changes; our ability to penetrate developing and emerging markets; litigation uncertainties; and other risks discussed in our periodic filings with the SEC, which reports are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact:
Hesperia Holding, Inc.
Fred Smith, VP Investor Relations
(760) 244-8787
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Source: Hesperia Holding, Inc.
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