powerpoint week 6

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The problem with most light bulbs besides LED is that there are results in high costing electric bills, maintenance issues, and environmental issues.

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Page 1: Powerpoint week 6

The problem with most light bulbs besides LED is that there are results in high costing electric bills, maintenance issues, and environmental issues.

Page 2: Powerpoint week 6

Mission statement: Save the community power.

Vision: Skies the limit; lighting is everywhere.

Values: Allow companies to be environmentally safe while also saving money.

Strategies: Start up, Promote, Grow, Name Recognition.

Page 3: Powerpoint week 6

Lighting Industry/Market Potential

Lighting industry is dominated by several international name brands: GE, Sylvania(Osram), Philips who are focused on Fluorescent & Incandescent lighting. Market potential: Per Israel Morejon, President of

LedNovation/Tampa: the U.S. Market buys over 5.7 million lights per day, 365 days per year = 2,080,500,000 lights/yr

OCT. 2010; GE closed last U.S. light MFG plant & moved to China due to cost. Sylvania & Philips have all plants in China to lower costs to help prevent LED lighting from establishing foothold.

LED light growth in Japan now exceeds 50% of domestic market with expected growth to exceed 17.5%/yr. due to lower operating costs and longer useful life.

A change to LED lighting helped Mandalay Bay Resort & Casino in Las Vegas lower their electricity costs from $36 million/yr. to $4 million/yr. A reduction of 80%, not including the savings from maintenance reductions.

Page 4: Powerpoint week 6

Market Objective

Market focus is the commercial market potential of 2 billion plus lights in the U.S. marketplace (the following lighting have LED equivalents): T8’s (Fluorescent tube lights) are the most commercially

required light for office lighting Par 30’s & Par 38’s are flood lights used frequently in

architectural highlight lighting in office locations. MR 16’s are used in commercially to display products.

We are not attempting to pursue the commodity market such for individuals

University of Miami believes their maintenance cost for changing a light bulb is $56 (Lower maintenance cost plus lower electricity costs = savings)

Page 5: Powerpoint week 6

Competition

Competition: Toshiba: Japan, Par 30 & 38, Plastic (6 LEDs), Lower Cost, Magazine, life time.

VA Opto: USA, T8, Par 30 & 38, MR16, Metal (7 LEDs), Higher Cost, Trade Shows, Constancy

GSSI: USA, Street Lights, T8, Par 20, 30 & 38, Plastic (138 LEDs) higher Cost, Internet, Price

Competitior Name Strength Weakness Opportunity Threat

Toshiba Par 30 & 38 Limited Product Line Lower Cost Cost & Product Name Recogition

VA Opto T8; Par 30 & 38; MR 16 Product Consistancy Lower Cost Volume pricing; production Capability

GSSI Street Lights; T8; Par 20,30 & 38; Mr16 Name Recognition Higher Cost Broader product offering

Page 6: Powerpoint week 6

Business Model

Business Model: Focus on large potential customers for LED Lighting: Resorts, Cruise Lines, Office Complexes.

Sales (Commission 8%)

Expenses

Expenses 2011 Profit/(Loss) 2012 Profit/(Loss)2 2013 Profit/(Loss)3Salaries 300,000.00$ 450,000.00$ 600,000.00$ Travel 10,000.00$ 12,500.00$ 15,000.00$ Insurance 3,000.00$ 4,000.00$ 5,000.00$ Cars 60,000.00$ 75,000.00$ 80,000.00$ Entertainment 10,000.00$ 15,000.00$ 20,000.00$ total 383,000.00$ 85,000.00$ 556,500.00$ 239,500.00$ 720,000.00$ 820,000.00$

Target Market 2011 Commission 2012 Commission2 2013 commission3Resorts 5,000,000.00$ 400,000.00$ 7,500,000.00$ 600,000.00$ 15,000,000.00$ 1,200,000.00$ Cruise Lines 250,000.00$ 20,000.00$ 1,250,000.00$ 100,000.00$ 2,500,000.00$ 200,000.00$ Offi ce Complex 600,000.00$ 48,000.00$ 1,200,000.00$ 96,000.00$ 1,750,000.00$ 140,000.00$ Total 5,850,000.00$ 468,000.00$ 9,950,000.00$ 796,000.00$ 19,250,000.00$ 1,540,000.00$

Page 7: Powerpoint week 6

2011 Pro Forma Cash Flow

Expense Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Year End TotalEntertainment (200.00)$ -$ -$ (200.00)$ -$ (1,100.00)$ -$ (2,000.00)$ -$ (3,000.00)$ -$ (3,500.00)$ (10,000.00)$ Car (500.00)$ (1,000.00)$ (4,000.00)$ (4,000.00)$ (4,000.00)$ (4,000.00)$ (5,000.00)$ (7,500.00)$ (7,500.00)$ (7,500.00)$ (7,500.00)$ (7,500.00)$ (60,000.00)$ Salary (2,000.00)$ (2,000.00)$ (6,000.00)$ (8,000.00)$ (2,000.00)$ (10,000.00)$ (30,000.00)$ (40,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (65,000.00)$ (300,000.00)$ Insurance (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (250.00)$ (3,000.00)$ Travel (100.00)$ (300.00)$ (300.00)$ (500.00)$ (1,100.00)$ (1,100.00)$ (1,100.00)$ (1,100.00)$ (1,100.00)$ (1,100.00)$ (1,100.00)$ (1,100.00)$ (10,000.00)$ Sub Total (3,050.00)$ (3,550.00)$ (10,550.00)$ (12,950.00)$ (7,350.00)$ (16,450.00)$ (36,350.00)$ (50,850.00)$ (53,850.00)$ (56,850.00)$ (53,850.00)$ (77,350.00)$ (383,000.00)$

CommissionsResorts -$ -$ 35,000.00$ 40,000.00$ 40,000.00$ 45,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 40,000.00$ 400,000.00$ Cruise Line -$ -$ -$ -$ -$ -$ -$ 10,000.00$ -$ -$ 10,000.00$ -$ 20,000.00$ Offi ce -$ -$ -$ 3,000.00$ 3,000.00$ 3,000.00$ 15,000.00$ -$ -$ 15,000.00$ 9,000.00$ -$ 48,000.00$ Sub Total -$ -$ 35,000.00$ 43,000.00$ 43,000.00$ 48,000.00$ 55,000.00$ 50,000.00$ 40,000.00$ 55,000.00$ 59,000.00$ 40,000.00$ 468,000.00$ Grand Total (3,050.00)$ (3,550.00)$ 24,450.00$ 30,050.00$ 35,650.00$ 31,550.00$ 18,650.00$ (850.00)$ (13,850.00)$ (1,850.00)$ 5,150.00$ (37,350.00)$ 85,000.00$

Cash Flow Q-1 Expense Q-1 Income Q-1 Net Q-2 Expense Q-2 Income Q-2 Net Q-3 Expense Q-3 Income Q-3 Net Q-4 Expense Q-4 Income Q-4 Net Year End Total

2011 (17,150.00)$ 35,000.00$ 17,850.00$ (36,750.00)$ 134,000.00$ 97,250.00$ (141,050.00)$ 145,000.00$ 3,950.00$ (188,050.00)$ 154,000.00$ (34,050.00)$ 85,000.00$

Page 8: Powerpoint week 6

2012 Pro Forma Cash Flow

2012Expense Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12Entertainment (2,500.00)$ (1,250.00)$ (1,250.00)$ (1,500.00)$ (1,250.00)$ (1,500.00)$ (1,500.00)$ (1,250.00)$ Car (7,500.00)$ (7,500.00)$ (7,500.00)$ (5,000.00)$ (5,000.00)$ (5,000.00)$ (5,000.00)$ (7,500.00)$ Salary (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (55,000.00)$ (55,000.00)$ Insurance (500.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ Travel (1,500.00)$ (1,000.00)$ (1,000.00)$ (1,500.00)$ (1,100.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ Sub Total (57,000.00)$ (55,250.00)$ (55,250.00)$ (53,500.00)$ (52,850.00)$ (53,500.00)$ (63,500.00)$ (65,750.00)$

CommissionsResorts 45,000.00$ 55,000.00$ 50,000.00$ 45,000.00$ 55,000.00$ 50,000.00$ 45,000.00$ 55,000.00$ Cruise Line -$ 30,000.00$ -$ 50,000.00$ -$ -$ -$ 10,000.00$ Offi ce -$ 20,000.00$ 15,000.00$ 8,000.00$ 8,000.00$ 5,000.00$ 15,000.00$ -$ Sub Total 45,000.00$ 105,000.00$ 65,000.00$ 103,000.00$ 63,000.00$ 55,000.00$ 60,000.00$ 65,000.00$ Grand Total (12,000.00)$ 49,750.00$ 9,750.00$ 49,500.00$ 10,150.00$ 1,500.00$ (3,500.00)$ (750.00)$

Cash Flow Q-1 Expense Q-1 Income Q-1 Net Q-2 Expense Q-2 Income Q-2 Net Q-3 Expense Q-3 Income

2012 (167,500.00)$ 215,000.00$ 47,500.00$ (159,850.00)$ 221,000.00$ 61,150.00$ (194,850.00)$ 170,000.00$

Page 9: Powerpoint week 6

2013 Pro forma Cash Flow

2013Expense Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sept.-2013 Oct-13 Nov-13 Dec-13 Year End TotalEntertainment (2,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (1,500.00)$ (2,500.00)$ (20,000.00)$ Car (6,000.00)$ (6,000.00)$ (6,000.00)$ (6,000.00)$ (7,000.00)$ (7,000.00)$ (7,000.00)$ (7,000.00)$ (7,000.00)$ (7,000.00)$ (7,000.00)$ (7,000.00)$ (80,000.00)$ Salary (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (45,000.00)$ (55,000.00)$ (55,000.00)$ (55,000.00)$ (55,000.00)$ (55,000.00)$ (55,000.00)$ (600,000.00)$ Insurance (250.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (350.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ (500.00)$ (5,000.00)$ Travel (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,200.00)$ (1,400.00)$ (1,400.00)$ (1,400.00)$ (15,000.00)$ Sub Total (54,950.00)$ (54,050.00)$ (54,050.00)$ (54,050.00)$ (55,050.00)$ (55,050.00)$ (65,200.00)$ (65,200.00)$ (65,200.00)$ (65,400.00)$ (65,400.00)$ (66,400.00)$ (720,000.00)$

CommissionsResorts 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ 1,200,000.00$ Cruise Line 20,000.00$ 20,000.00$ 20,000.00$ 40,000.00$ 10,000.00$ 20,000.00$ 10,000.00$ 10,000.00$ 20,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 200,000.00$ Offi ce 10,000.00$ 15,000.00$ 15,000.00$ 15,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 25,000.00$ 10,000.00$ 10,000.00$ -$ 140,000.00$ Sub Total 130,000.00$ 135,000.00$ 135,000.00$ 155,000.00$ 120,000.00$ 130,000.00$ 120,000.00$ 120,000.00$ 145,000.00$ 120,000.00$ 120,000.00$ 110,000.00$ 1,540,000.00$ Grand Total 75,050.00$ 80,950.00$ 80,950.00$ 100,950.00$ 64,950.00$ 74,950.00$ 54,800.00$ 54,800.00$ 79,800.00$ 54,600.00$ 54,600.00$ 43,600.00$ 820,000.00$

Cash Flow Q-1 Expense Q-1 Income Q-1 Net Q-2 Expense Q-2 Income Q-2 Net Q-3 Expense Q-3 Income Q-3 Net Q-4 Expense Q-4 Income Q-4 Net Year End Total

2013 (163,050.00)$ 400,000.00$ 236,950.00$ (164,150.00)$ 405,000.00$ 240,850.00$ (195,600.00)$ 385,000.00$ 189,400.00$ (197,200.00)$ 350,000.00$ 152,800.00$ 820,000.00$

Page 10: Powerpoint week 6

Financial Ratios

Profitability Ratios based on Customer Type

Liquidity Ratio

Leverage Ratio

Profitability Ratio 2011 2012 2013Resort Sales 0.0684 0.0603 0.0623Cruise Line Sales 0.0034 0.0101 0.0104Offi ce Complex Sales 0.0082 0.0096 0.0073total Sales 0.0800 0.0800 0.0800

liquidity RatioCaSH/DEBT 1.22 1.43 2.14

Leverage ratioDEBT/EQUITY 4.51 2.32 0.88

Page 11: Powerpoint week 6

Financial Ratios cont.

Cash Ratios

Valuation Ratios (assumes $5000/share & 5 shares per owner/4 owners)

Cash Ratio 2011 2012 2013Commissions/average debt 14.66 17.16 13.67

Valuation ratio 2011 2012 2013price/earnings ratio (PE) (TTM) 1.176 0.418 0.122Earnings/price 0.85 2.40 8.20price/sales ratio 0.13 0.26 0.68price/book value ratio 0.85 2.40 8.20Price/earnings to growth (PEG) 1.38 0.17 0.01