RJD Green Inc.'s Management Discusses 2021 Fiscal Year-End Results and 2022 Growth
Tulsa, OK - (NewMediaWire) - December 13, 2021 - RJD Green Inc. (OTCPK: RJDG) CEO Ron Brewer updates shareholders on 2021 fiscal year-end results and targeted 2022 growth.
Dear Valued RJD Green Shareholders,
As we have finished our 2021 fiscal year and are moving into the 2022 fiscal year, RJD Green's management team would like to take the opportunity to update all existing and potential shareholders with the latest information on developments with the Company. Please be advised – this letter is not a substitute for reviewing our press releases and SEC filings. Some of this update is opinion – please note the forward-looking statements disclosure. We wanted to simplify the complexity and put our latest news items in context and keep you updated on our activities and events that may not rise to the level of a press release or SEC filing.
We continue to work diligently to execute our business model to create a substantive holding company with a focus on acquiring and managing assets and companies. RJD Green operates in three divisions:
RJD Green Healthcare Services Division, which owns IoSoft Inc., a company that provides discrete payment technologies, services, and software platforms that can integrate into targeted offerings for healthcare provider networks, hospitals, healthcare payers, as well as the insurance and financial transection sectors.
Silex Holdings Division, which offers installed granite/other countertops, cabinets and related products to the residential builder, commercial contractor, remodeling contractor and retail customers.
Earthlinc Environmental Services Division, which provides green environmental services and green technologies.
In the past 12 months:
RJD Green’s Construction Products Division - Silex Holdings Inc.
In 2021 Silex Holdings experienced 9.72% revenue growth over 2020 and 18.9% over 2019, with a 16.1% EBITDA. These efficiencies were created despite a $174,000 one-time inventory write down. The history of continued growth has been enhanced by continued sales growth in the commercial sector and high-end custom homes market. Sales were supported by extensive increase in the automation of production increasing production capacity over 30% and further enhanced the quality control program with the additional CNC automation. These key components solidify Silex’s ability to create continued profitable growth and progress the expansion of the Silex Holdings business platform. RJD Green will continue to grow the division through internal growth and targeted industry acquisition options. Forecast for construction activities in 2022 remains positive with the commercial market continuing to be robust nationally and in Silex’s region. Homebuilding and remodeling are forecast to continue to be strong by all industry professional organizations. The first quarter of fiscal year 2022 ended November 30, 2021, revenue over $1,200,000 with solidification of 2022 backlog continuing.
The commercial division continued its revenue growth and geographic expansion with new commercial contracts awarded Silex in 2021. Silex has projected an additional $600,000 increase in commercial sales for 2022.
Silex Holdings homebuilder business will continue to grow in 2022 with two significant revenue streams as primary focus in both markets serviced. High-end custom homes ($1,000,000 to $20,000,000) will continue to offer increased revenues with greater profit margins.
Silex continues to service four national level homebuilders in both markets anchoring the homebuilder revenues and efficiency of production.
Silex has targeted the designer, remodel, and retail sectors for significant revenue growth from previous years. To enhance efforts in this sector a new 4,000 square foot kitchen and bath showroom has been completed in Tulsa, Oklahoma, and the Oklahoma City location of comparable size has been updated with this targeted market in mind.
Ron Brewer, CEO of RJD Green Inc. states, "Silex continues its progression in solidifying long-term relationships with valued clients in the construction industry by providing a custom quality product with fast turnaround times on our clients' orders. We feel the close attention to the changing market sectors and the individual needs of each market, will further assist Silex Holdings to continue regional expansion creating ongoing additional profitable revenue while searching for appropriate acquisitions that would consolidate a larger six-state regional position."
RJD Green Healthcare Services Division, IoSoft Inc.
IoSoft continues to pursue relationships within the initial focus of Third-Party Administrators (TPA) in the health care sector with contracts now being serviced and creating revenues. The TPA sector has become a long-term slower growth in clients than was anticipated. While we have continued increasing our presence in this sector, IoSoft focused on acquiring and creating additional software platforms that focus on common needs of universal sectors. This allows IoSoft to pursue custom software development and software support in sectors that include healthcare, insurance, legal, hospitality, and financial services.
Specific programs developed or refined include:
IoSoft Suites
The expedited payment systems are now teamed with claims processing and adjudication, a multi-level communications system, and accurate data collect software systems.
IOSoft’s integrated systems offer leading edge solutions for pricing and payment of claims that enhances efficiency and productivity. The software solutions can be utilized individually or as a total claims and payment management system.
IoSoft’s system offers full auto adjudication claims processing software program that maximizes automation and customer engagement thru leading edge technology. The system is secure, compliant, and scalable to the payer’s specific needs.
Some of the IoSoft integrated system components include:
- Manage Claims
- Member Management
- Paper Claims Billing along with cost and time savings through Virtual Card, Digital Checks, EFT
- Track Claims
- Segregation of Claims
- Provider Information and Communications Management
Outsourced IT Needs
The services include special technology and software company projects, essential technologies support and development, help desk, and network management services. The many benefits for the active small-cap company include:
§ Cost Reductions
§ Expedited projects
§ Freeing up internal resources
§ Outside business guidance for increased profitability through technology application
§ Scalability
This effort is very synergistic with IoSoft white label focus and independent software development efforts.
MedSwift
A healthcare software platform that provides superior solutions in logistics, communications and data storage and requires minimal set up and training.
RJD Green Inc.'s Healthcare Services Division in 2021 targeted strategic medical billing company acquisitions planned in 2021 and 2022. The sector typically offers 20% - 30% EBITDA earnings. RJD was unable to procure appropriate acquisition funding terms, which allowed the Company adequate cash flow for ongoing operations and growth. For 2022, RJD is in negotiations with potential equity partners to overcome the high-risk terms offered in 2021 and has the same market niche as a primary focus for acquisition.
Vincent Valentine, IoSoft Inc. President, states: "We are pleased to be continuing our initial efforts in creating clients in multiple targeted business sectors.”
Earthlinc Environmental Division
In 2022 RJD Green has targeted utilizing the proprietary green technologies in direct applications and joint ventures.
Earthlinc Environmental Division is servicing a product development program utilizing Agrico Corp’s forestation program processes, and a joint-venture effort with Winport Inc. in international land development and environmental reclamation utilizing RJD’s patented animal waste recycling ad repurposing utilization.
Ron Brewer, CEO, states: "Through our Earthlinc Environmental Division, RJD Green will continue its pursuit of contracting for their environmental technology services, while continuing efforts in developing additional proprietary environmental products and services. As equity partner relationships are procured, RJD will focus on acquisition of one or more companies operating in green efforts."
Merger and Acquisition
In 2021 RJDG was not successful in procuring the appropriate M & A funding program(s) which offered manageable risks in debt / equity financing and cash-flow. Multiple acquisition opportunities were procured, which would have moved the Company to $15,000,000 to $20,000,000 in annual revenue.
RJD was forced to procure smaller product and services acquisitions that enhanced our window of opportunity for continued revenue growth.
The inability to complete two or more substantive acquisitions is a source of consternation for RJD’s management and shareholders.
RJD Green is currently engaged in ongoing efforts to cement funding relationships that afford not only the ability to complete an acquisition, but also give RJD deal structure that does not require most of existing cash-flow of the acquisition.
Attractive acquisition opportunities are in place at this time, however RJD will maintain stringent cash flow to acquisition value ratios necessary to create the best surety and returns for our equity partner participants, and our shareholders as we move forward this year.
2021 Year End Financial Snapshot | ||
Profit and Loss | ||
Revenue | $4,420,611 | |
Cost of Goods | 2,808,872 | |
Gross Profit | $1,611,739 | |
G & A | 1,200,667 | |
Net Operating Profit | $411,235 | |
EBITDA | $713,079 | |
Balance Sheet | ||
Current Assets | $2,248,425 | |
Long-term Assets | 1,925,326 | |
Total Assets | $4,174,326 | |
Liabilities | ||
Current Liabilities | $1,371,362 | |
Long-term Liabilities | 272,500 | |
Total Liabilities | $1,617,014 | |
Shareholder Equity | $2,557,312 |
We will continue to update our investors with progress reports in the coming months as newsworthy occurrences happen.
We have accomplished a great deal in creating the groundwork and solid financial platform for growth. We are targeting acquisitions that meet our growth criteria and priced within appropriate cash-flow leverage. Our focus is to continue building a stable company with rapid growth potential, and we remain committed to pursuing initiatives that maximize value for all RJD Green stakeholders.
We very much appreciate your support and interest in our continued growth efforts.
Sincerely,
Ron Brewer
CEO, RJD Green, Inc.
About RJD Green, Inc.
The Company operates as a holding company with a focus on acquiring and managing assets and companies. RJD Green operates in three divisions: RJD Green Healthcare Services Division, which owns IoSoft Inc., a company that provides discrete payment technologies, services and software that can be integrated into targeted offerings for healthcare provider networks, hospitals, healthcare payers and individual providers; Earthlinc Environmental Services Division, which provides green environmental services and technologies; and Silex Holdings Division, which is engaged in specialty construction and industrial manufacturing and fills a market niche between the Home Depots and local contractors. Silex offers installed granite/other countertops, cabinets and related products to the residential builder, commercial contractor, remodel contractor and retail customer.
Forward-looking Statement:
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events of future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In the evaluation of such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the Company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.
Ron Brewer
918 551 7883
ronb@rjdgreen.com