Premier Holding Corporation Announces Financial Projections for the Fiscal Year
The Addition of the Power Supplier Increases Revenue and Profits on Essentially the Same Deregulated Power Sales Effort
TUSTIN, CA–(Marketwired – May 31, 2016) – Premier Holding Corporation (OTCQB: PRHL) today announced that its new power supplier completes the foundation for its growth strategy in the deregulated power industry.
Currently, the company generates revenue from commissions on the resale of deregulated power. The company has completed over 200,000 residential equivalent contracts since the acquisition by PRHL three years ago, and these contracts have been valued in the market from $60,000,000 to $80,000,000 or more if placed with the supplier.
The commission on the sale of deregulated power is a small fraction of the total revenue of the transaction. Now that PRHL has a supplier, it can now capture the total sale of power as revenue, and retain the difference between the wholesale and retail price of power, a much greater amount than just the commission.
The company will now be offering power through its own supplier, as well as from over 30 other suppliers in the market, providing the best choices for its customers. The company anticipates that a small percent of its immediate sales will be sold through its own supplier through the remainder of the year, increasing to over 50% in the coming years.
The resale of power should generate over $5,000,000 in revenue for the company's 2016 fiscal/calendar year (The third year in a row of double digit increases), and with only 6 months remaining in this year, the company expects to generate another $3,000,000 in topline revenue from this supplier as it ramps up. With the existing sales infrastructure the revenue from the supplier is projected to increase to over $40 million in 2017, and $95 million in 2018. This should increase even more as the company brings on more resellers through its unique internet-based Energy Sales Portal, "ESP."
Premier Holding Chairman and CEO Randall Letcavage, said: "It is a significant milestone to bring this supplier on board, and it is an integral part of our overall strategy. Now, the same efforts we expended in selling deregulated power will have a much greater financial impact to the overall company. Now, in each transaction the revenue could be more than ten times greater and the profitability on that transaction could be double or triple what we have been experiencing from just the sales commission. This is truly a game changer for our company."
Premier Holding Corp. Safe Harbor
This press release contains certain statements that may include "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects," "anticipate," "optimistic," "intend," "will" or other similar expressions. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under applicable securities laws, the Company does not assume a duty to update these forward-looking statements.
About Premier Holding Corporation
The Company provides financial support and management expertise, which includes access to capital, financing, legal, insurance, mergers, acquisitions, joint ventures and management strategies. The Company's mission is to acquire clean technology companies and/or green products and services that are accretive and that can be seamlessly integrated and utilize the overall economics of such products and services for the benefit of its customers. Through subsidiaries we offer renewable energy production, energy efficiency products and services to commercial middle-market companies, Fortune 500 brands, developers and management companies of large-scale residential developments. Additional integrated business offerings include direct energy services as power purchase agreements (PPAs), energy financing and leasing of generation programs in urban and rural real estate environments, lighting efficiency systems and refrigeration systems. For more information, visit PRHL Investors Relations: www.prhlcorp.com.
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