Q3 2021 IT Tech Packaging Inc Earnings Call
Okay.
Hello, ladies and gentlemen, and welcome to packaging looked quarter of 2021 earnings conference call. At this time I would like to inform you that this conference is being recovered and that all participants are in listen only mode.
Joining us today are the company's chairman and Chief Executive Officer.
Jen Young group and the company's Chief Financial Officer.
Gene called <unk>.
Remarks from both Mr. <unk> and MS. Hao will be delivered in English by interpreters IGT packaging announced its third quarter of 2021 financial results by press release on November 10, 2021, which can be found on the company's website at www dropped hygiene packaging docs you didn't miss it.
We'll start today's presentation with an overview of the third quarter of 2021 performance then Mitch Hull will share more details about the company's financial results before we start I would like to draw your attention to our safe Harbor statement.
Instruments prepared remarks contain forward looking statements within the meaning of the safe harbour portions of the.
Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical fact, India announcement are forward looking statements, including but not limited to anticipated revenues from the corrugated medium people tissue paper offset printing paper I'm afraid.
Yeah.
And initiatives of current and potential competitors, the companys ability to introduce new products the company's ability.
To implement capacity expansion market acceptance of new products general economic and business conditions.
Do you attract or retain qualified senior management discretion angry.
Research and development staff and other risks detailed in the company's filings with the Securities and Exchange Commission.
These forward looking statements involve known and unknown risks and uncertainties and are based on current expectations assumptions estimates and projections about the company and the industry. The company undertakes no obligation to update forward looking statements to reflect subsequent or current events or circumstances.
Sensors after changes in its expectations, except as may be required by law.
Although the company believes that the expectations expressed in these forward looking statements are reasonable it cannot be assured that this expectation will turn out to be correct and investors are cautioned that actual results may differ materially from the anticipated results. There is a presentation document featuring the managements prepared remarks.
The only available for download from the company's web site at <unk>.
W. W. Dot I T packaging drops again. Please note that there will be discussion of non-GAAP financial measure or EBITDA or earnings before interest taxes, depreciation and amortization. Please refer to our press release for a complete reconciliation of EBITDA to net income.
Claims Amanda Holden and live in the presentation are quoted in U S dollars and all comparisons are year over year comparisons unless otherwise stated.
Finally, I would like to turn the call over to the concerns young Li Chairman and Chief Executive Officer of ITK packaging. It all with you.
In English iconic.
Please go ahead.
Thank you operator, and good morning, everyone.
Well, it's an IC packaging third quarter 2021 earnings conference call today.
Hawaii.
Our overview of the company pro forma for the third quarter of 2021.
For the first nine months. This year, we continued to make improvements in the south of Crook 18, maybe more medium on paper, our CMP offset printing paper and tissue paper product.
Our total revenue kind of increment.
Nine 2% to $114 8 million.
So let me say, one 3% well over our south Wally.
25, 6% increase in average selling prices over all categories of product.
We recorded 34, 8% increase of gross profit.
It's either demand.
Our product is impacted by factors such as.
With 13, so probably 19 doubled reduction policy on the trend for people at the opposite we established the earn more per count.
Input by optimizing price.
Also.
Living paper manufacturers adjusting the production according to the duo control of energy consumption Paula.
Which will cause a shortage a flop.
How confidence and will continue to provide high quality product.
We expanded the performance and upcoming color will be significantly better.
Thank you again for all your support and attention now.
The call over to MS, Jean how I would see us.
<unk>, who will review our financial results for the third quarter of 2021.
The review will be delivered in English by comment Tom.
Yeah, everyone for being on the call now on behalf of the management team I will summarize some key financial results for the third quarter.
First nine months of 2021.
Also other occasional referred to the fact that I think production line.
So I used to when they put up I.
I will make clear, which puts us I'm referring to.
For reference the numbering system all of our production lines is provided.
Slide number 18.
Now, let's look at one measure performance for third quarter of 2020 one.
Turning to slide number seven.
For the third quarter of 2020, one total revenue increased by 35, 2% to 40 $45 1 million.
Due to the increase in south volume reveal the corrugated medium paper and the increasing average selling price of the M. P T.
Tissue paper product.
They only tend to fly as well.
Well, the third quarter of 2020, one the CMP segments, including both regular CMP and light, Louisiana Sweet generated revenue up.
That one fleet with as Andy.
Take one.
82, 8% of total revenue.
The $1 2 million of revenue was from our regular CMP product.
And I won't 0.1 milling was light weight CMP.
Yeah. He's segment volume increased by 22, 1% too.
74444 times.
Wage since the 1900.
47 pounds, where regulus, the honesty until seven 497 pounds, well I didn't say anything.
Average selling price for a while.
Regular CMP.
Increased by 24, 1% to 504 per pound.
And yes people like with the <unk> increased by 24, 4% to 490 foot count.
Let's turn to next page.
Well in the first quarter of 2020 one.
The offset printing paper generated revenue of $4 8 million deadweight.
Chris the five one points, where nearly all 21, 7% from the same tier where the rest of the year.
Offset printing paper volumes increased by 31, 5%.
Two selling seldon and 40 for the White House.
ASP for offset printing paper increased by 14, 3%.
Two 681 per count.
That's an interesting life.
For the third quarter of plenty of 'twenty one.
Tissue paper product generated revenue up two eight smell it.
Why do upon.
Well Neely.
Oh 18, 1%.
This resulted from the cells.
2646 cow tissue paper product we've been seven.
Cause them to quit.
1000 <unk>.
We put talent with an engquist, though.
<unk> seven 5%.
Moving to slide 11.
Our waste those really well.
I'm doing that a T cell and he says the first map.
Generated revenue of <unk> 2 million from selling based on us for the first caller 'twenty or 'twenty one.
Slide number 12 summarizes the change in our revenue mix.
Well the third quarter 2021 total cost of sales increased by 12.5 mailing too.
14th week 3 million, leading to total gross profit of 1.8 million plus nine 1% good credits from the gross profit.
2.6 million, while the same theory the luckier.
And overall gross margin was 4.0% water.
Third quarter of 2021.
For the third quarter of 2021.
G&A expenses decreased by 13, 5%.
Two two points below our operating loss for.
Zero point similar comp.
Paired to income from operations of.
There were 2 million for the same store, where it was last year.
Operating loss margin was zero point.
Well per cent compared to operating margin up <unk>, 5% for the same period of last year.
For the first quarter of 2021 net income was one 1 million without <unk> and not even come up with them.
Basic and diluted share.
This compared to a net loss of <unk>.
Zero point why mail it.
Oh, the net loss of two cents for the basic and diluted share for the same fill it up last year.
Well, the Sun <unk> third quarter 2021.
Earnings before interest taxes depreciation.
Inflation increased by $1 seven milling COO.
Five points you wouldn't know it from $3 6 million for the same store the less severe.
Now shifting gear to year to date financial results.
Yeah.
For the nine months ended September 30th plenty.
<unk> total revenue increased by.
69, 2% to 100, and plus $10 8 million as a result in Crystal South Ballroom and these are what are people product category.
For the nine months and David timber 13, plenty plenty one the CMP segment, including both regular and why do we say.
Generated revenue.
$94 8 million representing a.
I think the one eight.
80, 981, 9% off or pause their wedding.
78 core Christian 78 point.
Formula and our revenue was from our regular CMP product.
And the 15 corn formula was from luxury.
One of them or will it be empty segments and classes.
Hi, Greg.
Six three.
3% to 100.
18 nine.
700, and BOE to eight pounds of weight to 100.
Oh.
Let's see.
Other than that.
Eight tonnes were regular CMP.
And 33605 to eight tonnes were lightweight CMP.
Yeah people regular CMP increased by 28, 1% to 502 per pound.
As People's lives with the MTA and of course this by Congress seven.
8% to 488 cap.
For the nine months ended kornberg plant.
Plenty plenty more.
Our offset printing paper segment generated revenue.
$14 1 million.
When you ship.
<unk> thousand 602 pounds of offset printing paper for nine months.
Campbell <unk> 2021.
The increase of.
55, 3% from the same period of last year.
ASP of offset printing paper increased by 14, 4% to 684%.
For the nine months ended September 30, plenty plenty one tissue paper products generated revenue of six 5 million increased by 0.7 nail it.
12, 6%, which is well.
Southern.
963 pounds tissues tissue paper product suites.
13, 9% difference.
A ASP of 1089 per pound with an increase of 37%.
For the nine months ended September 30th quantity plenty, one suezmax generating revenue.
The low point for milling with Bell.
Sales volume of $9 7 million pieces of business.
For the nine months ended September 32801, total cost of sales increased by $45 9 million to <unk>.
100 and.
Eight eight.
Living to a total gross profit of $6 7 million an increase of 30.
Four 8% from last year.
Overall gross margin.
Slide 8% reflects a good class of one five percentage points from last year.
For the nine months ended September 32021.
Our G&A expenses.
Seven 2 million compared to $8 4 million for the same period last year.
For the nine months ended September 2021.
Operating loss decreased from $3 5 million to zero Cogs bundle it.
Operating loss margin was.
Bill Korn.
There was <unk> 4 million.
Compared to operating loss margin.
One 1% for the same period of last year.
For the nine months ended formula.
21 net loss for recon Similarly.
Although there were a.
Loss per basic and diluted share compared to a net loss of three 9 million.
Oh 0.15 loss per basic and diluted share for the same theory was last year.
For the nine months ended.
Pembroke Gardens quantity 'twenty, one earnings before interest taxes, depreciation and amortization.
Chris from $7 2 million to $2 7 million for the senior Sydney. So we ended up last year.
Now moving to slide 19 and 20.
Let's look at our balance sheet and the liquidity.
As the timber 30 plenty plenty one.
<unk> has cash and bank balances short term gap in clothing.
Bank loans current portion of long term loans from crowded evenly and related party alone.
As long term debt, including loans from credit Union.
Oh.
<unk> six <unk> six smell it.
<unk> 2 million and $4 5 million, respectively, compared to $4 1 million $12 2 million and $4 6 million respectively. At the end of 2020.
Net accounts receivable was.
One ASO timber burden 2021 compared to $2 4 million also December eclipsing 120.
Net inventory was seven six.
As of.
The point of authority quantity, one compared to $1 2 million at the annual 2020.
As of September 20.
The premise of quantity kind of what the company has current assets of 52 2 million and current liabilities of.
$18 7 million result in working capital of $43 5 million.
This was compared to current assets of 40.
9 million current liabilities of $18 3 million.
Resulting in a working capital.
Was it a few points.
<unk> 4 million at the end of 2020.
Net cash used in operating activities or with corn formula for the first nine months of 2021 compared to net cash provided by operating activities of $2 4 million for the same period of last year.
Net cash used in investing activities was $12 8 million for the first nine months of two.
2021.
Paired to two 6 million for the same period of last year.
Net cash provided by financing activities was $41 5 million for the.
First nine months of 2021.
Paired to net cash used in finance activities of $2 2 million for the same period of last year.
That's all for IC packaging third quarter of 2021 earnings conference call.
To everyone for joining us today.
Have any questions. Please contact us through email at IR App IC packaging dossier.
We appreciate your interest and parked in APAC type of packaging and look forward to speaking with you again next time, operator, let's go habits.
Thank you again for attending IEP, Jake packaging slipped quarter of 2021 earnings conference call.
This concludes our call today and we thank you all for listening and goodbye.
[music].
[music].
Hello, ladies and gentlemen, and welcome to U I T kicked packaging.
2021 earnings conference call at this time I would like to inform you that this conference is being recorded.
All participants are in a listen only mode.
Joining us today are the company's chairman and Chief Executive Officer, Mr. Shin Young.
The company's Chief Financial Officer with Jean Paul.
Box from both Mr. Liu and MS Hao will be delivered in English by interpreters.
Did you take packaging announced its third quarter of 2021 financial results by press release on November 10th 2021, which can be found on the company's website at www dropped <unk> packaging docs.
Mr. Liu will start today's presentation with an overview of the third quarter of 'twenty 'twenty. One performance then Mitch Hull will share more details about the company's financial results.
We stopped 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 harbour portions of it.
Private Securities Litigation Reform Act of 1095.
All statements other than statements of historical fact and be announcement are forward looking statements, including but not limited to anticipated revenues from the corrugated medium paper tissue paper offset printing paper business segments.
Actions and initiatives of current and potential competitors, the companys ability to introduce new products the company's ability.
To implement capacity expansion market acceptance of new products general economic and business conditions.
To attract all begin qualified senior management professionals.
Research and development staff and other risks detailed in the company's filings with the Securities and Exchange Commission.
Forward looking statements involve known and unknown risks and uncertainties and are based on current expectations assumptions estimates and.
Sections, and all of the company and the industry.
Company undertakes no obligation to update forward looking statements.
Subsequent to our current events are.
Centers after changes in its expectations, except as may be required by law.
Although the company believes that the expectations expressed in these forward looking statements are reasonable it cannot be assured that this expectation will turn out to be correct and investors are cautioned that actual results may differ materially from the anticipated results. There is a presentation document featuring the management's prepared remarks and it is now.
They live in football and go for the company's web site at Www Dot IC packaging drops to yen.
Note that there will be discussions on non-GAAP.
That's sort of measure or EBITDA or earnings before interest taxes, depreciation and amortization. Please refer to our press release for a complete reconciliation of EBITDA to net income.
As a claims Amanda all of them and in the presentation are quoted in U S dollars and all comparisons will definitely year over year comparisons unless otherwise stated.
I would like to turn the call over.
John Lewis, Chairman and Chief Executive Officer of ITK packaging is what would you like me to any blood in.
In English iconic Ken Colin Please go ahead.
Yeah.
Thank you operator, and good morning, everyone.
IC packaging third quarter 2021 normal Capex Cockle Bay I think why did our overview of the company's performance for the third quarter of 2021.
For the first nine months. This year, we continued to make improvements in the south a crook 18 megawatt.
Maybe I'm on paper and offset printing paper and tissue paper product.
Total revenue had a one quick.
Nine 2% to $114 8 million.
So I can say.
Person, well overall, south volume and our 25, 6% increase in average selling prices over all categories of product.
We recorded 34, 8% increase of gross profit.
Despite their demand.
Perfect.
Pockets by factors such as.
With 13, so probably 19 Diebold reduction policy under Trump will cause the opposite we expect the earn more per count.
Input biased upward I think try.
Also.
They're living paper manufacturers adjusting the production. According to the bureau of cultural of LNG consumption Paula.
Which will cause a shortage of supply.
I have confidence that we will continue to provide high quality product.
We expect the performance and the upcoming color we'd be significantly better.
Thank you again for all your support and attention now.
The call over to MS Jing Hao.
Oh, who will review our financial results for the third quarter of 2021.
The review will be delivered in English by common term.
Yes, everyone.
For being on the call now on behalf of the management team I will summarize some key financial results for the third quarter.
The first nine months of 2021.
Also other occasional reports of especially big production line.
I used to when they put out.
Clear, which puts us I mean, we're going to.
For reference the numbering system.
Our production lines is provided.
Slide number 18.
Now, let's look at one Asia performance for first quarter of 2020 one.
Let's turn to slide number seven.
For the third quarter of 2020, one total revenue increased by 35, 2% to 40 $45 1 million.
Due to the increase in south volume revenue, plus <unk> medium paper and the English average selling price of BMT.
And tissue paper products.
Turning to slide eight.
Well the first part of 2020, one the CMP segment, including both regular CMP and light weight CMP generated revenue of.
37 <unk> fleet.
With its Andy.
Hey.
A P two eight.
<unk> total revenue.
The $1 2 million of revenue was from our regular CMP product.
Hum COO.
1 million worthwhile and light weight CMP.
Yeah, Hey segment volume increased by 22, 1% too.
74444 town.
Wage since the 1900.
Seven pounds were regular CMP, and 12497 pounds well lots of them.
Average selling price for a F.
For regular CMP increased by 24, 1% to 504 per pound.
Yes for life with the actual increased by 24, 4% to 490 per pound.
Let's turn to next page.
Well, the first quarter of 2020 one.
The offset printing paper generated revenue of $4 8 million.
Decreased to five 1 million.
Or 21, 7% from the same period last year.
The offset printing paper volumes increased by 31, 5%.
Two seven Zelda and 40 for the lifestyle.
ASP for offset printing paper increased by 14%.
Sure Sir.
Uh huh.
181 per count.
Then turning to slide 10.
For the third quarter of 2021.
Tissue paper of course that generated revenue of 2.8 mill it increased by zero point.
For me at all.
All 18, 1%.
This resulted from that.
<unk>.
<unk> thousand 646, count tissue paper product, we've been 7%.
Okay.
1000 <unk>.
This is ray per count with the anchors though.
<unk> seven 5%.
Moving to slide 11.
Our waste those really well.
I'm joined at a T cell I'm pleased with our first Matt.
Generated revenue of <unk> 2 million from selling based Mac for the first caller tiny tiny one.
Slide number 12 summarizes the change in our revenue mix.
For the third quarter 2021 total cost of sales increased by 12.5 mailing too.
$43 3 million, leading to total gross profit of one point incrementally plus nine 1% good credits from the gross profit.
Two 6 million for the same period last year.
And overall gross margin.
Four zero.
Zero percent for the third quarter of 2021.
For the third quarter of 2021.
G&A expenses decreased by 13, 5%.
Two two points below our operating loss for <unk>.
<unk> 2 million compared to income from operations of <unk>. Similarly for the same period of last year.
Operating loss margin was zero point Chris.
Percent compare to operating margin of <unk>, 5% for the same period of last year.
For the third quarter of 2021 net income was one 1 million, resulting in net income of three cents per basic and diluted share.
This compared to a natural loss of.
Zero five new at all.
The net loss of $2 for the basic and diluted share for the.
The last year.
Well the Sun <unk> third quarter 2021.
Earnings before interest taxes, depreciation and amortization increased by $1 7 million.
Two five points you wouldn't know it from.
From $3 6 million for the same period last year.
Now shifting gear to year to date financial results.
For the nine months ended September 30 funding kind of want until the revenue increased by.
69, 2% to 100 and plus 10.
8 million as a result of incremental sales volume and ASP is or what all people product category.
For the nine months ended September 30th plenty plenty one P M.
<unk> segment.
Both regular and why do we see.
<unk> generated revenue.
$94 8 million, representing a 90 189.
<unk> 81, 9%.
Her wedding.
78.
Kristen 78 points.
Formula and our revenue was from our regular CMP products.
And 16 corn formula what some Ludwig.
One of the room for CMT segment.
Yeah.
By two six.
<unk> two <unk> hundred.
18 nine.
738 pounds of weight to 100.
Oh.
With sovereign.
Sovereign debt.
80 pounds were.
CMP.
And 33605 to eight counts were.
We're likely CMP.
As people regular CMP increased by 28, 1% to 502 per tonne, while ASP people light weight CMP increased by <unk> seven points to.
8% to 488 cap.
For the nine months ended September.
<unk> 2021.
Our offset printing paper segment generated revenue of.
$14 1 million was shipped.
<unk> thousand 602 pounds of offset printing paper for nine months.
Timber 13, 2021.
The increase.
<unk> five 3% from the same period of last year.
ASP of offset printing paper increased by 15, 4% to 680.
<unk> four per pound.
For the nine months ended September 30, plenty plenty one tissue paper products generated revenue of $6 5 million increased by 0.7 Miller.
Our 12, 6%, we should sell them.
900.
63 pounds tissues tissue paper product suites.
13, 9% decrease.
ASP of 1089 per pound with an increase of 37%.
For the nine months ended September 30th quantity plenty, one suezmax generating revenue.
The low point for milling with Dell.
Sales volume of $9 7 million pieces of business.
For the nine months ended September 32801, total cost of sales increased by 45 9 million to one.
100 and.
$8 8 million, leading to a total gross profit of $6 7 million and enquiries.
34, 8% from last year.
Overall gross margin.
Slide 8% reflects a good clip of one five percentage points from last year.
For the nine months ended September 32021.
SG&A expenses were $7 2 million compared to $8 4 million for the same period last year.
For the nine months ended September 30th plenty plenty warm.
Operating loss decreased from $3 5 million to zero caused by Miller.
Operating loss margin was zero point.
There are formulary.
Compared to operating loss margin of five 1% for the same period of last year.
For the nine months ended formula or the quantity of 21 net loss for Groupon Humira.
Although low 0.06.
Basic and diluted share compared to a net loss of $3 9 million.
Oh 0.15 loss per basic and diluted share for the same period of last year.
For the nine months ended September <unk>.
Broadening quantity of 'twenty one.
Earnings before interest taxes, depreciation and amortization.
Chris.
Seven 2 million to $2 7 million for the full year same period of last year.
Now moving to slide 19 and 20.
Let's look at our balance sheet and our liquidity.
As the timber 13, <unk> 'twenty one.
Company has cash and <unk>.
<unk> balances short term gap in clothing.
Bank allowance current portion of long term notes from crowded, Illinois and related party alone.
As long term debt, including loans from credit Union.
26 6 million.
$12 2 million and $4 5 million, respectively, compared to $4 1 million $12 2 million and $4 6 million respectively. At the end of 2020.
Net accounts receivable was full.
$12 1 million as of December 32021, compared to $2 4 million as of December one 2020.
Net inventory was seven six.
Mirroring ASO.
Point of authority quantity, one compared to $1 2 million at the end of 2020.
As of September 20.
The premise of quantifying what the company has current assets of $52 2 million and current liabilities.
$18 7 million result in working capital of $43 5 million.
This was compared to current assets of $14.
9 million and current liabilities of $18 3 million.
Resulting in a working capital build.
And with it our proof points.
<unk> 4 million at the end of 2020.
Net cash used in operating activities or six formulary for the first nine months of 2021 <unk>.
Compared to net cash provided by operating activities of $2 4 million for the same period of last year.
Net cash used in investing activities was $12 8 million for the first nine months of 2021 compared to $2 6 million for the same period of last year.
Net cash provided by financing activities was $41 5 million for the first nine months of 2021.
Compared to a net cash used in finance activities of $2 2 million for the same period of last year.
That's all for IC packaging third quarter of 2021 earnings conference call.
I'd like to thank everyone for joining us today.
Do you have any questions. Please contact us through email at IR at <unk>.
Packaging dossier.
We appreciate your interest in park in IC pack type of packaging and look forward to speaking with you again next time.
Let's go habits.
Thank you again for attending IEP, Jake packaging third quarter of 2021 earnings Conference call. This concludes our call today and we thank you all for listening and goodbye.