ForceField Energy Inc. ("ForceField") (Nasdaq:FNRG), a seller and
distributor of energy products and solutions, today provided a
business update including 2014 highlights and 2015 outlook.
Business Highlights:
- Completed strategic company transformation to focus solely on
the high-growth multi-billion dollar LED Market
- Completed and fully integrated two award winning providers of
LED Lighting Systems and Services -- American Lighting
(ALD) and ESCO Energy Services
- Established strategic relationship with Noveda Technologies to
provide advanced lighting management solutions
- Grew product and services revenues 28% year-over-year to
approximately $9.1 million including acquisitions
Company Transformation and Focus on High Growth LED
Market:
Based on the multi-billion dollar market opportunity for LED
lighting products and solutions and the relative reduced sales
cycle and lower cost of capital required to drive potential growth
and future profitability, the Company divested its interest in
Trans Pacific Energy and its TCS business. The combination of both
transactions eliminated operating losses related to these business
segments, reduced share dilution and enabled the Company to focus
on the LED business segment.
In October 2013, WinterGreen Research published a study entitled
"LED Lighting: Market Shares, Strategy, and Forecasts, Worldwide,
2013 to 2019." According to that study, next generation lighting is
expected to achieve a complete replacement of incandescent filament
bulbs with LED lighting that is more energy efficient, lasts longer
and has a significantly lower cost of operation. Sales of LEDs,
that outpace incandescent bulbs in North America, are expected to
completely replace incandescent bulbs over time. The LED lighting
market, estimated to be $4.8 billion in 2012, is anticipated to
grow 45% per year through 2019 to approximately $42 billion. The
Company believes the reasons for this shift are declining price
points, and increased marketing of LEDs to consumers.
Strategic Growth Initiatives:
During 2014, the company entered into several strategic
transactions and agreements that significantly increased our LED
market penetration and provided the Company with immediate sales
opportunities and the ability to supply and service a broader
customer base both in the US and internationally. The Company made
two acquisitions in 2014 of award-winning LED lighting and
installation companies, each with a twenty-year track record of
servicing high profile clients including numerous Fortune 500
companies and other large concerns and expanded the Company's
geographic reach to more than 20 states in the U.S. At the time of
acquisition, these companies had combined proforma revenue of
approximately $17.0 million, if they had both been acquired for a
full year. Key initiatives include:
- Completed the acquisition of American Lighting, an
award-winning, leading energy-efficient, commercial lighting
specialist with over 20,000 installed customers and standing
relationships with many of the major California utility companies,
including Pacific Gas and Electric Company (PG&E), Southern
California Edison (SCE), and San Diego Gas & Electric
(SDG&E).
- Completed the acquisition of ESCO Energy Services, a leader in
energy efficiency upgrades and lighting retrofit projects with
strong utility company relationships and long-standing master
agreements with global engineering firms. The company has a strong
presence within New York, New Jersey, New England, Washington,
D.C., Connecticut and west through Pennsylvania, and is continuing
to expand throughout the US.
- Signed an exclusive licensing agreement with Noveda
Technologies Inc., a leader in cloud-based, real-time energy and
water management systems for Noveda's Intelligent Lighting
Management Technology incorporating integrated measurement and
verification for use in all LED applications. Noveda's technology
provides a 360 degree view of consumption patterns including
energy consumption, financial savings and carbon reduction in
real-time, with high impact user interface.
- Entered into a partnership agreement with San Diego, California
based WAXIE Sanitary Supply, America's largest independently-owned
distributor of sanitary maintenance supplies. The companies are
rolling out a joint sales and marketing program for ALD's LED
Lighting Systems and Services to WAXIE's current base of customers
across nine states in the Western US.
- Expanded capabilities to support growth:
-Experienced in-house installation teams in core markets
-Broad LED and energy efficiency product offering enabling
tailored solutions for each client project
-Strong relationships with high-profile national energy services
companies and major utilities
-Proprietary cloud-based proposal generation system and
automated audit data and rebate processing capabilities
-Highly experienced utility incentive processing team
-Third party specialized installation team infrastructure across
various states
Significant Streetlight Project and Bid
Activity:
In November of 2014, the company's ESCO subsidiary was selected
by the Connecticut Conference of Municipalities ("CCM") along with
two other companies to implement Connecticut's municipal Street
Light LED Conversion Program. Under the five year service
agreement, ESCO expects to work with CCM's 153 member-communities
to implement this innovative, state-wide program; which, with full
participation, is estimated to be valued between $75.0 and $90.0
million over a five year period. Based upon the preliminary scope
of work the Company believes that ESCO, being the only regional
company selected, could realize revenues in excess of $25 to $30
million over the duration of the agreement which spans 3-5
years.
In February 2015, the Company entered into three Letter of
Intent agreements for three LED streetlight conversion projects in
Connecticut amounting to approximately $1.3 million and are bidding
on approximately $17.0 in additional work. This streetlight
initiative is the Company's largest current active project. The
Company estimates that it will generate between $6-10 million in
revenue from this streetlight project in 2015 and believe that a
fully integrated street light acquisition and LED conversion
program that incorporates an array of financing options provides
the Company with a competitive advantage as the Company
aggressively pursues other communities in Connecticut as well as
the significant opportunities in other states and communities
across the US.
As of March 31, 2015 the Company had approximately $2.9 million
in backlog, approximately $1.5 million in signed letters of intent
for streetlight projects for three municipalities in Connecticut
and one in Massachusetts; as well as 500 active bids for LED
lighting projects amounting to approximately $70.0 million.
Additionally and not included in the $70.0 million total, is one
discrete bid for $22.0 million in Latin America. The Company does
not have enough operating history to correlate the amount of
backlog or bid activity that will result in revenue generation for
us. The realization of revenue from these bids and especially for
some of these very large prospective customers or projects, will be
dependent on the successful completion of energy audits and initial
trials, consummation of definitive agreements, delivery of LED
product by the Company's LED supplier, and the ability of both the
Company and the end-users to obtain financing on reasonable
terms
David Natan ForceField's Chairman and CEO stated, "As a result
of our actions over the past twelve months, we have successfully
completed our transformation of ForceField Energy into a leading
provider of LED products, services, and solutions to a broad range
corporate and government customers across industries and types of
facilities. We acquired best-in-class award winning companies that
have more than 20 years' experience working with some of the
largest utilities and Fortune 500 corporations in the US and signed
strategic agreements which strengthened our product offerings and
expanded our customer reach. I would urge you to review their
websites to learn more about the strength of their operations,
client projects and overall strong reputation in the market. As
evidenced by the CCM, Constellation and WAXIE agreements, among
others, we have already demonstrated their ability to continue to
expand new opportunities for growth in the coming year. We believe
the breadth of our LED products and solutions, combined with our
internal sales initiatives and strategic partnerships will enable
us to capitalize on this growing market, and in 2015 we will
continue to undertake initiatives to further strengthen our
competitive advantages in these areas. We have already made
substantial gains in helping our customers implement cost effective
and environmentally friendly LED lighting solutions which we
believe we will continue to do going forward."
Resignation of Executive Chairman
For information about the April 19, 2015 resignation of Mr.
Richard ST Julien as Executive Chairman and from all other
positions he held, see the Company's current Report on Form 8-K
filed with SEC this morning.
About ForceField Energy Inc.
ForceField Energy Inc. and its subsidiaries comprise a global
company whose products and solutions focus on sustainable energy
solutions and improved energy efficiency. ForceField is a
distributor of LED and other lighting products for a number of
premier LED lighting manufacturers; and through its award-winning
subsidiaries, American Lighting and ESCO, have completed lighting
installations and retrofits as well as energy efficiency upgrades,
for numerous high profile concerns in a variety of industries.
www.forcefieldenergy.com
Forward-Looking Statements
Except for statements of historical fact, the matters discussed
in this press release are forward looking. "Forward-looking
statements" describe future expectations, plans, results, or
strategies and are generally preceded by words such as "future,"
"anticipates" or "anticipated," "believes," "estimated" or
"estimates," "plan" or "planned," "expects" or "projected." These
forward-looking statements reflect numerous assumptions and involve
a variety of risks and uncertainties, many of which are beyond
ForceField's control that may cause actual results to differ
materially from stated expectations. Some of the factors that could
cause actual results to differ materially from the forward-looking
statements contained herein include (i) failure to obtain adequate
financing to achieve the Company's LED revenue targets and to
support working capital needs; (ii) successful installation and
efficacy of the Company's LED lighting products; (iii) expansion of
the Company's product offerings and services to additional states
across the U.S., (iv) generating additional revenue and
profitability from the Company's expected national expansion
program, (v) competition within the LED industry both domestically
and internationally, (vi) efficacy of ESCO's streetlight product
offering, (vii) generating $25-30 million dollars from the
streetlight program over the next three to five years, (viii)
realizing the potential operating and financial benefits of exiting
the ORC waste heat segment and focusing on the LED market
opportunity, and (ix) other factors, without limitation, which are
set forth in documents we file from time to time with the
Securities and Exchange Commission, which are available at
www.sec.gov. For a written description of these factors, see the
section titled "Risk Factors" in the Company's Form 10-K for the
fiscal year ended December 31, 2014 and any updating information in
subsequent SEC filings. The Company disclaims any intention or
obligation to update these forward-looking statements whether as a
result of subsequent events or otherwise, except as required by
law.
CONTACT: ForceField Energy Inc.
David Natan
(212) 672-1786
dnatan@forcefieldenergy.com
www.forcefieldenergy.com
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