Q4 2019 Earnings Call

On a retrofit.

To your.

Yeah, I don't want to talk about that too much I I did you could probably guess, we're being very careful about how we how would we do this how would price it I don't want to sell it too cheap I don't want to sell too expensive I don't want to give it away I want to make sure we construct control that Ah so exactly how it rolls out in the cost per unit et cetera, I don't want to getting the bad.

Detail, but again I I can say absolutely confidently, it's got to be less expensive than buying a new fork truck, it's going to be less expensive than buying two new electric fork trucks, right and it's kind of it's got to be something cost effective there's someone can actually consider as a capital investment to do this retrofit a in a meaningful way with their existing from.

So sorry, I thought your answer a little bit there, but I just want to be careful because it's so important to us how we roll this out.

Okay. Thank you and along that same lines, but in the building market.

Oh can you give us an idea that dollar amount.

60.25 megawatt order in Toronto.

How can be yeah.

Yeah, sorry, Alex I I won't go there you know, there's there's like three pieces to the equation and I'm always going to leave one piece out so that you'd so there are competitors can triangulate our pricing.

So so I'm very careful when I give out order size, an order cost an order complexity to make sure I always leave out just enough information, where our competitors can't really triangulate, where we are so I hope you'll understand that.

Oh I didn't thanks, you had any rate.

Reasonable competitors, but.

Well, that's dish people always concerned about costs and this and as much as they I I again, I I try to be as careful as possible to not give our competitors anymore advantages I know what have the tactical advantage, but you know sometimes people people make mistakes and go first costs. All the time that wasn't mistake of all these indoor cultivation compete.

He is that we did not get behind they want an install these air source split systems, you know put like 40 or 50 of them on the roof, and then expected them to work and of course, they don't work and so.

Customers that look for first cost you know, they're gonna do what they're going to do try as I might of course, he tried to make our merits on our technology and and improvements.

These are either units that go on top of building a don't work.

Well no they like what I mean to say Alex is that you know are we we sell industrial Chillers you know a water water cooled chilling systems chilling loops that are again part of industrial processes.

A little office building will just throw a little cheap I can split their source you don't on the roof.

Just to do some comfort cool you can't use those little era source units do industrial cooling, it's cheap to do it and you May think you can do it but there are so many complexities, particularly with indoor growing when you have latent heat and all these these heat loads that they have to be accounted for mistakes will be made mistakes were made several of these.

These facilities are regretting it because they're seeing their enormous electric bills and their wishing that they went to a more integrated system like the teco chill. So I got my overall point just I try my best to make people to have people make the right decisions based on technology and operational costs, but there's always gonna be people to think they can make do what first costs them and ultimately a catch.

As up to them I think we're seeing that in the indoor cultivation now which is good for us.

That's good one more question and again its numbers related.

Can you give us any guidance on sales and earnings for 2020.

Yes, it's not standing I would.

Yeah, no al it's not something I took that we give out I don't give out that type of guidance. Our products are up they're up from last year. They have enough just about every year or product Sanlo service revenues have certainly been up every year and I see no reason to expect why that wouldn't continue.

And and do you expect it turned the corner in terms of profitability I mean, one of the reasons I think your stock is been weak is that.

Oh, you've been growing but they just got profitable gross.

Yeah, So I will add to that in the most direct way I can which is yes no. That's my goal in 2020, Alex is we've got our revenue we've got our product revenues. We've got our service revenues. We've got is increasingly good contributions from the energy producing assets that we still own we're making improvements on our margins and all of these things will lead us to pay.

Profitability, if everything comes together in 2020, so absolutely Alex we're very close.

We took the opportunity at the end of this year the clear a lotta items on our books now that inventory write down hurt, but we needed to do it you know and what we're entering 2020 with a nice clean slate of all those accounting.

Weirdness things over the I've got the transaction are mostly over our and now we can focus on our core business the product and service growth.

Thank you.

Thanks, Alex.

Thank you.

There are no further questions at this time I would like to tend to flow back I have its management for closing comments.

Thank you all again for participating and look forward to talking with you again in our first quarter earnings call.

This concludes today's teleconference. You may now disconnect your lines at this time. Thank you for your participation.

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