Market Overview | Premier Power Renewable Energy

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Company Overview
Premier Power Renewable Energy (“Premier” or “the
Company”) is a leading global
provider of small to large-scale solar power systems delivering unmatched
experience to the
commercial, agricultural and residential sectors in North America
and Europe. Premier was one
of GE’s leading resellers in the U.S. in 2006 and 2007. Customers
have included utilities such as
Pacific Gas & Electric and Sierra Pacific, home builders including
KB Homes, and agricultural
businesses including several leading wineries in California. Premier’s
sales expanded by 68%
from 2006 to 2007, and it has been profitable in each of the last
two fiscal years.
The Company was formed as a division of Premier Homes Properties
in 2001, and was
spun off in 2003 in order to meet the growing demand for commercial
and residential solar power
system installations. Premier installs solar systems that range
from 1KW to as large as utility
scale systems larger than 1MW.
Premier’s historical growth and plans for future growth are
based on several key strategies:
(i) diversifying its business across vertical markets and geographies;
(ii) leveraging its world
-class engineering team to overcome design and integration challenges
in an increasingly customized
market; (iii) development of proprietary turn-key solar power
systems as well is participating
in “value-added” business that allow it to generate ancillary
revenue; and (iv) it intends to
target and pursue synergistic and accretive acquisition opportunities
that will create further operating
leverage. |
| Last Price |
3.50 |
| Exchange | OTC BB |
| Change | 0.00 |
| Open |
N/A |
| Day
Range | N/A -
N/A |
| Bid | 3.40 x 500 |
| Ask | 4.00 x 500 |
| 52Wk
Range |
3.00
- 5.95 |
| E.P.S. | N/A |
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| Last Trade |
11/24/2008 |
| Volume |
0 |
| % Change | +0.00% |
| Prev Close | 3.50 |
| P/E Ratio | N/A |
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Company Highlights
• Announced approximately $48 million in revenues contracted
through September, 2008.
• Revenues for the six month period ended June 30, 2008, were
$17.9 million, an increase of
103% over the $8.8 million reported for the same period last year.
Gross margins for the six
month period were 15%, and net income was $274 thousand, a decrease
of $270 thousand
on a Y/Y basis.
• Revenues for FY2007 were $16.6 million, an increase of 68%
over the $9.9 million reported
for FY2006. Gross margins for the period were 25%, and net income
was $843 thousand,
up 293% on a Y/Y basis.
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Operational Highlights
October, 2008 - Installed one of nation’s first dual purpose
rooftop systems bringing solar
power to the customer, the grid and solar powered charging stations
for electric and hybrid
electric vehicles.
• September, 2008 - Announced Installation of nation’s
first and largest bidirectional solar
trackers for Delano Water District
• September, 2008 - Began trading publicly and completed capital
raise of $7 million
• July, 2008 - Announced Completion install of 1.2MW solar
farm built for enXco, Inc., which
contracted to sell the power to the Sacramento Municipal Utility
District.
• Premier ranked two years in a row (2006 & 2007) in the
Inc. 500 magazine list of fastest
growing companies in America.
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Market Overview

The global solar power market, as defined by solar power installations,
had an estimated $17.2 billion in revenue in 2007. The U.S.
solar power installation market comprised about 8% of the total global
market installations, reaching about 220MW installed in 2007.
The residential and small commercial market represent about 65% of
the U.S. market and are expected to maintain this share through
2010.
Growth in the solar energy industry has been driven by:
- The demand for viable alternative sources of fuel for electric
power generation
- Increasing demand for electricity, which in turn, drives energy costs
higher
- Government regulations and incentive programs - 26 states current
have renewable portfolio
standards and Congress recently extended renewable tax credits
for solar. In addition,
several states require utilities to offer rebates that substantially
reduce the cost of
installing solar systems, which reduce customer’s out-of-pocket
cost for purchasing solar
systems by 20% to 50%. At the federal level, there is currently
a 10% federal tax credit
for residential systems and a 30%federal tax credit (with no cap)
for
business systems.
- Power Purchase Agreements between solar power system purchasers
and electricity users under which electricity is sold/
purchased on a long-term basis.
Advantages of solar power over conventional sources:
- Clean energy production - no greenhouse gas emissions, no
wasted water, no waste generation.
- Fixed cost - installed systems’ cost is fixed over the lifespan
of the
system, making solar more attractive in the face
of rising electricity
costs.
- Location-based energy production - solar systems can be installed
at the site where the power is used, thereby reducing transmission
and distribution costs.
Premier Power Renewable Energy

Geographic diversification - Europe and North America are going to continue
to be the largest consumers of solar power, and Premier
operates in both continents in multiple locations. Its current market coverage
is Northern and Southern California, New Jersey,
New York, Madrid and Pamplona, Spain.
Vertical market diversification - In addition to geographic diversification,
Premier is diversified across different vertical markets, including
commercial, agricultural, residential, homebuilders and solar power plants.
Engineering and Innovation - Premier Power’s engineering and design
teams can scale from residential and small commercial systems
to large commercial and utility projects. It has consistently exceeded
industry standards for system design and engineering.
Customer focused - Premier Power has remained disciplined in its strategy
to be technology agnostic, understanding that different
customers and projects requires unique and custom solutions.
Research & development - Premier Power continues to focus on research & development
of more efficient and less labor intensive
racking designs that reduce man hours to complete projects, and associated
costs.
• Environmentally focused - Premier Power believes strongly in protecting
the environment and the “Leave No Trace” mindset. As a
result, it has developed a ballasted ground mount system that sits
on the ground, requiring no holes, no cement in the ground and
virtually no environmental impact.
• Premier has also developed a roof-mounted racking system that enables
it to install systems more efficiently and at the proper
angle, which is extremely beneficial for Power Purchase Agreements
(PPA).
Industry Overview and Growth Drivers
Premier Power’s Advantage
Driven by the $3.4 billion California
Solar Initiative (CSI), California has
grown to be the third largest market
for solar behind Germany and Japan.
In the U.S., California represents more
than 75% of the commercial solar
market. The CSI is expected to increase
solar generation capacity to
3GW of electricity by 2017. |
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Download Corporate Brochure
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Contact Premier Power Renewable Energy, Inc.
| Address:
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| 4961 Windplay Drive Suite 100
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| El Dorado Hills, CA 95648 |
| Telephone: |
(877) 939-0400 |
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The Management Team
Dean R. Marks
Chairman, President and Chief Executive Officer
Mr. Marks has been a key player in the solar sector since the
early 1980’s, having pioneered multiple applications of solar
energy in the residential, commercial and industrial market. Mr.
Marks
has been President and CEO of Premier since 2001. He holds a Bachelor
of Science degree from Auburn University, with special emphasis
on Environmental Science.
Miguel de Anquin
Director, Chief Operating Officer, Chief Financial
Officer and Corporate Secretary
Mr. de Anquin has led
global sales at Premier since 2001. Prior to Premier, Mr. de Anquin
served as Director of Marketing for Nordic Information System and
Next Information System; and as Technology Advisor for General Electric
and IBM. He holds a Masters in Business Administration
from the University of California at Davis and a Bachelor of Science
Degree in Computer Science from the Universidad de Belgrano in
Buenos Aires, Argentina.
Teresa Kelley
Chief Financial Officer
With more than 22 years
of experience in corporate accounting and operations management,
Kelley previously served as Chief Financial Officer of Vista Point
Technologies, a design and manufacturer of electronic components,
and subsidiary of Flextronics. Prior to VPT, Kelley began her career
as a financial analyst at Intel Corporation, later serving in several management
positions before becoming the Senior Controller of the Intel Networking
business which she helped grow from $60 million to a $3 billion business
in seven years. During that period, Kelley oversaw about 15 completed
acquisitions and mergers, and had
full P&L responsibilities. Kelley also was controller of Intel’s
manufacturing and microprocessor business, and served as Senior Controller
of Intel’s information technology, human resources, legal and
finance organizations, spanning 15,000 employees and a $2 billion budget.
She has a BS in Business and an MBA from Santa Clara University.
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