ORLANDO, Fla., Jan. 28, 2015 (GLOBE NEWSWIRE) -- RedChip Companies, Inc., today announced it has issued a research profile on ForceField Energy Inc. (Nasdaq:FNRG), a global company whose products and solutions focus on sustainable energy solutions and improved energy efficiency.
Highlights of the report include:
Acquisitions position FNRG to address the $84 billion+ U.S. LED lighting market. FNRG has made a number of acquisitions to take advantage of the rapidly growing energy efficiency market. FNRG acquired American Lighting on April 25, 2014, and acquired ESCO Energy Services Company for $7.5 million on October 17, 2014. Both acquisitions were completed at a 5.5x trailing 12 month adjusted EBITDA multiple. We believe these were good deals for FNRG, given each company's expertise and reputation, along with the projected rapid growth in LED lighting solutions.
Financing with no upfront payment provides funding to grow project backlog. FNRG is beginning to implement an off balance sheet financing program that will give the Company the means to rapidly accelerate revenue. These external project financing solutions allow FNRG to service customers who either do not have the financial means to spend money on upfront capex to perform a lighting retrofit and/or acquire clients that may not have pursued a retrofit without the reduced risk that these financing solutions allow. These programs also allow FNRG to pursue larger projects, as the Company will have the means to fund larger and potentially more lucrative work. FNRG will receive funding from its third-party financing partners, using this to finance equipment/capex upfront and then factoring (selling) the accounts receivable to its financing partners. FNRG and/or the financing partner own the LED lighting equipment, which provides some risk coverage if the project is not as lucrative as anticipated.
Blue-chip client base gives FNRG creditability and potential recurring business. FNRG has performed projects for blue-chip clients such as Wal-Mart, Home Depot, Whirlpool, Sony, Harvard Medical School, Delta Industries, hospitals, airports, and parking garages, along with projects for various government entities and clients in the United States, Puerto Rico and Mexico. This client base can help provide future growth for FNRG in a few ways. Having a strong client base has enabled FNRG to sharpen its expertise, along with providing future clients confidence that the Company can effectively provide lighting installation and consultation services. Additionally, FNRG can continue to perform additional projects for its previous clients (many of these clients have numerous locations that can provide repeat business), whose project backlogs could be getting larger as LED lighting retrofits become more attractive.
To receive a complimentary copy of the full RedChip Research Report for FNRG, please visit: http://www.redchip.com/assets/reports/FNRG_Research_Profile_20150126.pdf
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