Tulsa, OK, Dec. 17, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE — RJD Green Inc. (OTCPK: RJDG) CEO Ron Brewer updates shareholders on 2019 activity and anticipated 2020 growth.
Dear Valued RJD Green Shareholders,
As we have finished our 2019 fiscal year and are moving into the 2020 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 – so be sure to 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 that can integrate into targeted offerings for healthcare provider networks, hospitals, healthcare payers and individual providers;
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 technologies.
In the past 12 months:
RJD Green Healthcare Services Division, which owns IOSoft Inc.: IOSoft fully launched, and initial contracts are being serviced and creating revenues. The management of IOSoft feels confident that steady growth and income can be achieved in 2020.
RJD Green Inc.’s Healthcare Services Division announced the Company has entered into discussion with a large strategic marketing partner to initiate White Label licensing agreements to provide the software and processing services of IOSoft within their corporate brand.
IOSoft’s UPC™ platform focused on improving the plans’ security, management, and control over their payments process.
The IOSoft team has pioneered the development of virtual health care payment systems since 2006. IOSoft understands and has addressed many of the industry challenges and created the industry’s most comprehensive problem solving, cost-effective medical payment system in today’s market.
Building on its extensive experience, IOSoft is pleased to present its latest Unified Payment System™ (UPS). UPS begins with a Cloud-Based system interface that connects with all claim system technology and implemented in 30 days or less with no or minimal workflow changes. The software products can quickly and painlessly be customized to meet the particular needs of each account.
The Cloud-Based System provides a common portal, giving the Provider and Payor a standard Gateway that allows for more exceptional communication and a standard decision matrix.
UPS offers every type of available payment on the portal with enhancements to traditional payment types and patent-pending new technology with significant cost savings.
On average, the IOSoft UPS platform presents a 70 percent improvement over competitive payment system alternatives.
In 2020, IOSoft will commence broadening its sales efforts to include other markets where IOSoft has been approached by interested entities in markets such as hospitality and legal services where significant volume payment processing occurs.
Vincent Valentine, IOSoft Inc. President, states: “We are excited to be solidifying our efforts on existing agreements and reaching new business sectors that create the diversity of our revenue streams.”
RJD Green is in discussions with possible synergistic acquisition and merger candidates as we enter 2020 with a focus on completing an additional acquisition that extends “our services to healthcare companies” platform.
Silex Holdings Division
The commercial division continues its revenue growth and geographic expansion with new commercial contracts awarded Silex this year.
In 2019, Silex Holdings experienced 14.6% growth over 2018 and 17.1% over 2017. The history of continued growth has been enhanced by ongoing quality control enhancements and productivity capabilities that is supported by a sales and marketing team with a successful history in the industry. 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 cautiously broaden the product base and regional expansion of Silex Holdings.
Silex Holdings also announced the awarding of regional homebuilder purchase orders for natural stone countertops and related products with an expectation of an ongoing multi-year relationship creating a robust market base to sustain a continuous additional revenue stream. The Silex homebuilder revenues have been strengthened through significant growth in the large custom home sector of over $1,000,000 home values.
The compilation of various permit reporting outlets indicates the new home permits will sustain a 10% growth into 2020, barring severe economic upheaval, which gives Silex complimentary profits from their primary revenue stream. Commercial projects planned in the regional market indicate continued growth in 2020. Silex management feels the commercial sector will be 25% of revenues in 2020, bringing a potential $1,000,000 in additional annual revenue. Over the next twenty-four months, this sector could equal the revenues generated annually in the residential new construction sector. The commercial market growth offers additional profitability and broadens the Company’s client and revenue base, which is very beneficial if an economic downturn were to occur.
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. The establishment of the commercial market allows Silex Holdings to continue regional expansion creating ongoing profitable revenue while exploring appropriate acquisitions that would consolidate a larger six-state regional position.”
Earthlinc Environmental Division
RJD Green has accrued three very relevant patented technologies.
Earthlinc Environmental Division has entered into an initial eighteen-month product development program utilizing Agrico’s forestation program concerning animal waste.
Ron Brewer, CEO, states: “Through our Earthlinc Environmental Division, RJD Green has received a contract for development services with Agrico that encompasses developing environmental products and services focused on animal waste. The initial contract focused on creating services that are proprietary to Agrico. The two companies have agreed to create joint-venture efforts in the utilization of proprietary intellectual properties or services created.”
Earthlinc has procured short-term consulting contracts and joint-venture relationships to launch revenues and allow RJD to remain active in acquisition search. RJD Green was very active in the acquisition search for environmental services companies in 2019 and will continue those efforts in 2020.
RJD Green has aggressively approached procuring an appropriate acquisition for each of our three divisions. We also have maintained strict acquisition guidelines that offer the best opportunity for positive results in revenue, profits, and creating synergy within each of the divisions.
In 2019 the Company was unsuccessful in completing additional acquisitions. We found the leverage of cash-flow ratios to be abnormally high for small-cap companies under $20,000,000 annual revenue. RJD Green reached letters of intent with two separate companies in 2019, but unable to comfortably complete those opportunities from the due diligence process.
RJD Green is currently engaged in discussions with M & A opportunities, and actively exploring additional opportunities to complete the desired annual revenue growth to $20,000,000 or higher with ongoing growth opportunity. We 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.
2019 Financial Results Snapshot
Profit and Loss
Cost of Goods 2,660,240
Gross Profit $1,711,117
G & A 1,520,117
Net Operating Profit $ 191,959
EBITDA $ 448,190
Current Assets $1,647,272
Long-term Assets 956,527
Total Assets $2,603,799
Liabilities and Assets
Current Liabilities $1,512,300
Long-term Liabilities –
Shareholder Equity $1,091,499
We will continue to update our investors with progress reports in the coming months as newsworthy occurrences happen.
In closing, the vision of RJD Green Inc. is clear. We have accomplished a great deal in creating the groundwork and stable platform for growth. We will continue to target creating accelerated growth through acquisition. 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.
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.
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.
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