Q3 2020 IT Tech Packaging Inc Earnings Call
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Hello, ladies and gentlemen it.
Welcome to participate I T Tech packaging it took what the 2020 earnings conference call.
At this time I would like to inform you that this conference is being recorded and debt Oh participants on human listen only mode.
Joining us today on Mr., Changyoung, Ji, Hi, Tech packaging, Chairman and Chief Executive Officer, Ms. Jing Hao I have missed Jing Hao, the Companys Chief Financial Officer.
Remarks from both Mr., Liu and Ms. Hao will be delivered in English by interpreters.
Hi to TEP I continue to announce it today.
Third quarter 2020.
Financial results apply it press release yesterday, which can be found on the company's website at www <unk> IC packaging dot C. and.
First Mr. Liu will brief you on the Companys key operational highlights over the third quarter 2020, and then Ms. Hao will review the company's financial results.
Before we start I would like to draw your attention to our safe Harbor statement.
Management's prepared remarks contain forward looking statements within the meaning of the safe Harbor provisions of the private Securities Litigation Reform Act on 1995.
All statements other than statements of historical fact, it announcement forward looking statements, including but not limited to anticipates it revenues from the Corrugating medium paper.
Tissue paper offset printing paper and face most business segments.
The actions and initiatives all current and potential competitors the.
The company's ability to introduce new products, the companys ability to implement capacity expansion market acceptance of new products.
General economic and business condition happily it used to attract and retain qualified senior management management personnel and research and development staff and other risks detailed in the Companys, calling on the Securities Commission.
These forward looking statements involve known and unknown risks and uncertainties and not based on current expectations.
Options estimates and projections about the company and the industry.
The company undertakes no obligation to update forward looking statements to reflect subsequent all current events or circumstances on to changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward looking statements on reasonable it cannot assure you that piece.
Since we took it out to be correct and investors are cautioned that actual results may differ materially from direct expense results.
That is a presentation document featuring managements prepared remarks, and it now available for download it from the company's website at Www, <unk> IP packaging dot C. and.
We thought that there will be discussions on non-GAAP financial measure on EBITDA or.
Earnings before interest.
This depreciation and a multi location.
Please refer to our press release for a complete reconciliation of EBITDA on net income to net income.
That's it kind of it might have on them, but in our presentations on quoted in us dollars and all comparisons refer it to year over year comparisons unless otherwise stated.
I'll now turn the call over to Mr. Liu his comments will be TV, but it increased by Hebei shoot from Evergreen impact relations Mrs. few. Please go ahead.
Thank you operator, and good morning, everyone. Thanks for joining it looks third quarter 2010 day earnings Conference call.
We continue to make improvements in sales volume for this quarter as our people to index business, along with the whole industry recovered from the pandemic.
Our total revenue increased to 33.4 meeting on the other piece you people products grew 53.4%.
In revenue with total sales volume on seven to four felt it.
Okay and line George on 26 pounds, well it this quarter sales volume well see on Pcs.
On the offset printing paper continued quarter on quarter growth and it rebounded to the same level as last year other.
He asked piece recording.
Tim on 4% it.
Hi, Michelle increase from Q2, 2020 experienced a slight decreases compared it to the Q3 2019.
The Chinese government up due to cut back on free plastic bags in 2010 to it and as the best Fiftyk restrictions.
Impairment peak nationwide pay per pack. He some people taking per ducs I expect it to become the main compute on plastic packaging it under the requirements.
It wont be factors such as.
Turing, peaking out.
As you can match it routine logistics and express deliberate.
According to watch on Securities market analysis on subs cpqd demand for cars.
For Cod Walt paper in the Oh from before mentioned other areas.
My kids the loans expected to be four point, I think 1 million pounds as such the company real it takes full advantage on the market opportunities growth.
By those subs teacher would it be Mt four key per packages.
Now I will turn the call over to other C of O listing Hao, who will review on comments on the third quarter financial results. Her comments will be delivered in English by my call. It 10 Islam suddenly it. Please go ahead.
[noise] sense, it really in a sense I rely on well be on the call next on the on the management team I wasn't on the line on K financially and I'll call. It does it.
The other two then finally on so I was hearing on even for it is it's a big production eyes on associate it with various products.
Net clear when spot on I'm, referring to paraphrase share number it they tend to follow up on Bouton I provided on slide number 18.
Now, let's look at it dollar financial performance on it but a quarter of interest on the blending please turn to slide number seven.
[noise] once it the quarter of 2012 total revenue increased to one on as Jay said it to steady stream coins Paul made it into the increase in sales volume on the tissue paper product Champagne and it says mask products turning to slide eight on say the quad pole just when it.
I think it then give segment, including those wrapping it up 70, and the light weight CMP and away from the revenue up 24.6 million, representing 73.8 7000 total revenue.
I didn't point Sixmillion revenue wise from our rather lumpy pop out.
And the 5.1 million was from like we then it.
Send it segment volume was slightly increased by 1.3, then you should see it out and then I hinted on the night one town other wage.
48170 pounds was like 17, and it 20884 patents on like away from it.
Average selling price is people reckless and it is likely decreased by Derek on Drake said until fall into it six per town and ASP for light weight CMP on what they call until she can do it ended fourth on the Nike Fourk account.
Turning to slide nine on said across other outstanding debt.
It offset printing paper getting it right the revenue I'll call it.
No one mill it equates advisor call it 9 million on 12.9% from since your last year the.
The offset printing paper volume slightly increased and they're quite an eight cents channel. It is out in the 280 pounds that day for offset printing paper it decreased by 13.6 percentage to find it and get it and I can say on top.
Turning to slide 10 tissue paper products generated revenue of two important formula increased it by that was quite an eighth man it off as they take on slide said Miss.
Yes, it without going from sales of 2000, and 855 pounds tissue paper products.
55.2 percentage increase by the ANC as tee it up.
They tend to it and if any focus on how does it decreased 1.1%.
Turning to slide in other when sales.
So it didn't imply then do it and the seventies sales salary on the P. things out face to face masks and generating the revenue there on the two minute from a selling it this is Matt well as I said the quad to 13.8.
Slide number two I'll summarize day, if that changes in our revenue mix.
So instead of water from two is on the 20 debt on top of sales, including advised shape on it so milind to their link on the eight minutes late into the total gross profit of 2.6 net.
Since day 2.2 per cent decrease from book was coffee five point on the Formula price Emcare last year. It then.
And the growth and overall gross margin of 7.7% well it said.
2020.
So it was in the quarter on the two dozen it grinding SGN expenses increased by 18.1% to jump on the formulary and income from operations, where they work on the 2 million compared to income from operations of safe one assuming it close it appeared ASCII it on the legacy margin worse.
There are quite a 5% compared to operating margin of 10.2% force Emcare asking it.
Well it said the quarter other peers on the 20 net loss was that was going on by Miller resulted in a net loss of two cents per day leakage and the per basic on if that makes it a share that's compared it to a net income of two point Jamie on.
Net income of 11 cents per basic and diluted per share precedent here last year total required to other peers and it 20 Onee is before interest taxes, depreciation and amortization decreased by 7.5 million to 3.6 million from sample on the one day parts Emcare it.
Yes.
Now just to be a two year to date financial results for the nine months ended September 13, two is on the 20 total revenue decreased it.
18.5% to 68 going to finally as it was out of decrease in sales the volume of regular 17 offset printing paper.
On that combined it was decreasing has piece Oh paper products categories for it.
Nine months ending September 32000, it running.
Sam TCEP net including both Wrangler and light weight CMP generated revenue of 54 point Tim there.
[noise] [noise], representing 79.2% other total revenue 42.6 million in revenue. It was from our revenue ascent pain products and 11 point estimate it was from light weight CMP volume for incentive segment.
Decreased by 9.9% to it.
And it and the 39200 and it they count of wage went into it and 8870 4002 on regular 17 and said they sell it must be handed and 84 towns to a light weight CMP as CFO Rankle usseventeen decreased by 9.1%.
Q3 hundred and then I think you could count while ASP for light weight CMP decreased by 8.6% to 382 per pound for the nine months ended September 32 is on the two any other offset printing paper segment generated revenue of seven point.
Form it will shift to on the South end is 400 and they take it helped us offset the premium pay but it was nine months ended September 30 interest on the company net decrease our Thirtyth reported mistakes presents growth. The same here last year as people on that opinion paper it decreased by.
I think on the two percentage tendered and anatomy shape it town.
For the nine months ended September 32 is on the timing issue. They book that generated revenue of 5.8 million increased it by one point it to me on all 25.3% yes.
Yes. It resulted from sales of 6900 and it 22, it tells tissue paper on that.
Gross 40.
7.4% increase and then that's day of.
It tend to the NSN leads to it the town where the decrease.
Volume 0.9%.
The nine loans ended the September 30 into it on the 20 cents masks generating the revenue of 1.1 million weighted sales volume.
9 million 800, and the sales being faced out on the PC about this month.
For the nine months ended on September 13, two is on the 20 total cost of sales decreased by two I'll go on 4 million to showcase Jay Cohen Winemiller laid into total gross profit of 5 million and a decrease of 38.7% from last years Oh it.
Total gross margin of 7.2% with net debt decreased 2.4.
Full percentage points from last year.
For the nine months ended on September 13, two is on the 20 it as Jana expenses. It was 8.4 net net compared to 2001 formula for the same here last year total nine months ended September 32 is on the 20 <unk> income from operations increased.
From the reported some mail at your net team.
So I think on the fly Miller.
Income from operations decreased from though on a settlement led to an empty. It would take on the 1 million operating loss margin, whereas it by going to one per cent compared it to operating margin well from their Ocwen day second quarter sales here last year.
For the nine months ended September 13 to it on the 20 net loss was $3.9 million of testing labs.
15 cents loss per basic and diluted per share compared to non-GAAP net income.
Yes on reserve Zero 7 million net earnings from their point is that most AEROSURF eight cents per basic and diluted per share per cent carried out last year.
For the nine months ended September 13, two is on the 20 earnings before interest it can save the growth Asia and compensation decreased from 10.7 million to use them quantum two minutes force and here it last year.
No interest lies and liking and it running net look side, our balance sheet and liquidity as of September 13, 2022 company had a cash in the balance balances share comes debt, including bank loans current portion on long term loans from carried a unique and then related Apollo and it.
Non comes debt, including loans from quantity only as of April on it so miller $10.8 million and $5.4 million, respectively, compared to 5.8 million price Lehman had assembled on the 4 million respectively. At the end of 2019.
Now it goes into a sellable wise since rate on the finally as of September 13, just on the planning compared to 3.1 million as of December 31st 2019, non M. entry was eight point.
6 million as of September 30 inches on it pointing compared to one point essentially at the end of 2019.
As of September 2000.
So Ted September 13, two is on the Twentyth. The company had it current assets of 30.4 minutes and other current liabilities of 15 point non Miller, resulting are walking on two of 7.6 million.
Yes, it was compared to on the assets of 24 million and the current liabilities of 15.8 minutes. There's other working capital of simple on the similar it at the end on for 2000 and I can.
Non-GAAP cash provided by operating activities. It was 2.4 million force 39 miles of two is on the 20 compared to net cash used in operating activities out 4.6 minute force in here last year.
On a cash used in investing activities was two point assessment as for the first nine months of 2020 compared to fiscal on assignment force SM here. It last year net cash provided by financing activities where to go on it so minute for the first nine months of two is on the 20 compared to net cash.
As it is.
Financing activities.
Five on the 2 million flow same period last year.
Oh It was received several questions about the operations and the second quarter results from our investors now the management. It is answering this question comes as a follow on.
Number one number.
Memo on classic what it says they told us the self pay percentage investment.
It is planning to make in Chinese in college, and it had tier IP solution provider.
As to this collecting the cash.
<unk> expenses.
From Telus Quest as Florida common as implementing it.
<unk> sales the hobby financial results of the target company as furthering negotiate Asian way sales shareholders is it.
<unk> expenses, you will close on the acquisition by the end of December.
Question number two how likely is the evo two jobs that on there so on materials castaways Neal by instead it is.
As magic vendors bouncy. It is question on Florida on Tom It is actively diverse imply it so on the other welcome materialize in there.
As it is the establishing long term collaboration to secure more favorable price on the payment terms from suppliers.
If you have any other questions placed on it through email and IR at <unk> I think it packing. So I'll say it management the way it was bound to your questions through emails as though as possible.
Operator, Please go ahead.
Operator.
Hi, I beg your pardon can you repeat that please.
Or any place it go ahead.
How do you want to conclude the call. Please.
But yes. It here so when I want it because when it went away on when other day into how is it too and then session. So went into it we're going to lose it so much sense that's on the.
Ladies and gentlemen.
Brent you may now disconnect your lines. Thank you for your participation.
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