Q4 2021 CPS Technologies Corp Earnings Call
Ladies and.
Gentlemen, thank you for standing by welcome to the C. P. S Technologies Corp, 2021 you're an investor call. At this time all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
Question during the session you will need to press star one on your telephone.
Acquired any further assistance. Please press Star then zero I would like to hand over the conference to your speaker Mr. Chuck Griffith, Sir you may begin.
Thank you, Jeff and good afternoon, everybody I'm joined today by Michael Mccormack, Our President and Chief Executive Officer, who will offer his comments on our fourth quarter and annual results.
Before we begin the business portion of the call I would like to point out that statements. In this conference call that are not strictly historical are forward looking statements within the meaning of the private Securities Litigation Reform Act of 1095 and should be considered as subject to the many uncertainties that exist in Cps is operations and environment.
These uncertainties include the impact of COVID-19, the Russian invasion of Ukraine, economic conditions market demands and competitive factors such factors could cause actual results to differ materially from those in any forward looking statements.
Now I'll turn the call over to Michael to offer his perspectives on the year end fourth quarter results.
Thank you Chuck and good afternoon, everybody. Thank you for joining us.
We are pleased to announce the fourth quarter revenue was up $6 2 million and an operating profit of 312000 for the quarter ending December 25 2021.
This compares favorably with revenues of $4 2 million and an operating loss of 291000 for the same quarter a year ago ending December 26 2020.
The financial results for the fourth quarter were anticipated based upon the proactive restructuring steps, we executed in the third quarter and marked our best overall quarterly performance since the pandemic began.
We believe this past quarterly performance is more indicative of our near term outlook of the business the nearly 50% growth in revenue as compared to the same quarter a year ago is extremely noteworthy as well as the 13% increase from the third to fourth quarter results.
We are demonstrating continued incremental improvements because of the changes we are implementing to create inherent value and generate greater revenue and operating Kevin and deliver shareholder value.
For the fiscal year, we are reporting revenues of $22 5 million as compared to revenues of $20 9 million in fiscal year 'twenty, the seven and a half annual organic growth rate over the fiscal year is consistent with our strategy fiscal.
Fiscal year 'twenty, one reflects the second highest year ever in terms of revenue for the company.
For the fiscal year were reporting $513000 in operating income. The company is also reporting net income of $3 2 million in 2021 versus 914000 in fiscal year. 'twenty. This increase is due to the reversal of the company's deferred tax reserve. In addition, this also marks our second <unk>.
<unk> profitability.
Our book to Bill of 167% to one for the fiscal year 2021 continues to reaffirm our growth strategy is translating into results over a larger sample of data. We are cautiously optimistic that the increased sales of fiscal year 'twenty, one will directly translate into steadily increasing revenue in fiscal year 'twenty two.
The Covid is still omni present, we are continuing to monitor all aspects of our supply chain remain vigilant on ensuring availability of raw goods to create and deliver products to our customers. The viability of our entire chain has been challenged since the pandemic outbreak nearly two years ago. We are confident we have multiple plans in place to control the <unk>.
Issues, we can control.
I'll speak a little bit later more about the overall business progress moving forward on the call, but for now I'll turn it over to Chuck and he'll discuss the financial details and then a little bit more detail.
Thank you Michael.
So revenues totaled $6 $2 million in Q4, 2021 compared to $4 2 million generated in Q4 2020, so an actual increase of 48%. This increase was due primarily to the increase in sales for armor and hermetic packages.
In the fourth quarter of 2021 as well as the impact of COVID-19 of the COVID-19 pandemic on sales in the fourth quarter of 2020.
Gross margin in Q4, 'twenty, one totaled $1 4 million or 22% of sales. This compares with gross margin in Q4 20 <unk>.
$5 million at 12% of sales this creates and margin dollars directly correlates to the increase in revenue between the two periods.
Selling general and administrative expenses totaled $1.01 million in Q4 dollars 21, compared with SG&A expenses up 789000 in Q4 2020. This increase was due to the increase in sales employees total compensation expense and to an increase in commission expense due to the higher <unk>.
<unk> volume.
The company experienced operating income of $312000 in Q4, 'twenty, one compared to an operating loss of 291000 in Q4 2020. This increase in operating income is due primarily to the increase in revenue as we previously discussed.
For the year ended December 2521 revenues totaled $22 4 million compared to $20 9 million in 2020, an increase of 8%.
This increase was due primarily to the increase in sales for armor and hermetic packages in 2021.
Gross margin in 2021 totaled $4 8 million or 21% of sales. This compares with gross margin in 2020 of $4 2 million, which was 20% of sales the increase in margin dollars is directly correlated to the increase in revenue.
Selling general and administrative expenses totaled $4 $3 million in 2021. This compares to SG&A expenses up $3 $3 million in 2020 <unk>.
Several factors contributed to this to this increase.
The company incurred a.
And at the expense of in excess of $300000 for onetime restructuring costs in 2021.
The company paid the salaries and benefits for both our retired CEO and our new CEO during the first half of 'twenty. One they were both here at the same time, adding about $100000 to our SG&A expenses and we also added three new sales positions in 2021, which contribute to our overall increase in comp.
<unk>.
The company experienced operating income of 513000 in 2021 compared with two operating income of 914000 2020, and the decrease was due primarily to the increase in SG&A expenses as we previously discussed.
The company recorded net income of $3 $2 million in 2021 compared to $900000 in 2020, and this increase is primarily due to the reversal of the company's deferred tax reserve.
In December of 2018, the company set up a valuation reserve against its deferred tax asset at that time. Following a period of sustained losses management determined that it was more likely than not that this tax asset would not be used.
Management has reevaluated this decision in light of recent profitability and expected future profitability and has determined that it is more likely than not that the company will be able to fully utilize this tax asset as such a tax benefit of $2 $7 million has been recorded on the income statement as of December .
<unk> 2005 2021.
Turning to the balance sheet, we ended the quarter with $5 million of cash. This is an improvement to our cash position of $195000 at the end of 2020.
In May we completed our at the market filing and began raising funds over that program through the end of the year, we raised approximately $3 $4 million net under the ATM offering. These funds have enabled us to completely ceased borrowing under our bank line of credit.
In addition, we have been able to absorb the increases in accounts receivable as our sales grow and in inventory as we develop our armor line.
Ah raised under this offering is being managed such that we've covered our short term cash needs.
We've become more selective regarding the days and market prices at which we will sell additional shares as such no. Additional cash was raised during the fourth quarter under the ATM program.
Accounts receivable at December 25, 2021 totaled $4 $9 million compared with $2 9 million at the end of December 26th 2020, our days sales outstanding totaled 72 days at the end of the quarter compared to 62 days for the prior year. This increase was due to the inclusion of <unk>.
About $600000 of deferred revenue in the 2021 year end accounts receivable, if we take that amount out then the days sales outstanding at the end of 2021 would have been 63 days, which is in line with previous years.
Inventories totaled $3 $9 million at the end of December compared to 2021, compared with $3 7 million at the end of December 2020. This increase in inventory is due to increased armor materials offset by better management of inventory and other product lines improved inventory management is now on air.
A focus the inventory turnover in the most recent four quarters was four seven times compared to four five times for the period ended December 26 2020.
Turning to the liability side payables and accruals totaled $2 8 million at December 25, 2021 up from $1 $8 million at December 26, 2020. This is due to greater expenditures, resulting from higher sales levels as well as the accrued restructuring charges, which we had previously.
Just.
So for further discussion I'd like to turn the call back over to Michael.
Youre right.
Thank you Chuck.
This past quarter and fiscal year, we continue to make positive measurable progress on streamlining and improving current operations. While also simultaneously addressing our long term goal to grow to a sustained.
Medium sized business as an organization, we are completely focused on increasing our ability to add sales and improve our ability to execute we have substantially rebranded the company and improved our web social media and digital presence. We are now able to reach more potential customers investors and potential new employees about our.
Ability to supply innovative custom made materials based solutions to solve our customers' most challenging issues.
We've also continued to add additional staff members that will enable us to scale the size of the business without significantly adding cost as we execute we have hired more engineers more sales staff and shared service members to name a few positions.
Would like to take a moment to discuss our approach to increasing our overall technical bandwidth growing our approach to product innovation, we are adding technical staff to address the growing demand of our products across all three product lines Hermetic packaging armor and the metal matrix composite business. Our engineers are working with the business develop.
<unk> staff developed solutions that specifically address customers' requirements, while working predominantly in our funding constraint environment. This is directly equating to the addition of new customers, especially in the RF microwave market segment. Most importantly, this is bringing about a renewed interest in our industry only <unk>.
<unk> package.
I am quite pleased with the progress, we're making we have reenergized our contract research and development services business as evidenced by our participation in the small business innovative research and the small business technology transfer programs the.
<unk> and <unk> programs are the large reason for most of the recent success of our hybrid Tech AMR program aligned with the United States. Navy. These programs are highly competitive awards that encourage domestic small businesses to engage and federal research and development programs with the potential for commercialization and <unk>.
Asian as these programs advance through the research and development or R&D to commercialization. There are afforded additional intellectual property protections and sole source manufacturing rights within the U S Federal government.
We have recently been awarded an exciting research and development contract with the U S Army aviation community to address the of thermal management concerns for future vertical lift programs.
Al as they call them.
F&B Al program is a plan to develop and replace the current utility attack cargo and reconnaissance helicopters and the entire U S. Armed forces. Although the program is just beginning we are immensely proud of our engineering staff to propose a nobel solution that our military comes with value over several potential.
Solutions, including numerous prestigious academic institutions to help dissipate heat over large areas for critical aviation applications.
I'd like to specifically mentioned the magnificent work of Dr. Steve catcher, Dr. <unk> Janeiro, and Mr. Bill homes. In this endeavor. We are also awaiting notification on several other contract research and develop opportunities within both the department of energy and the department of Defense.
As we look beyond fiscal year 2021, now Cps is continuing to follow up on the success of the past quarters with the proving production volumes. We have made a commitment to a new material resource planning MRP tool in conjunction with our new enterprise resource planning tool ERP to enhance the.
Efficiency and profitability of the entire operation we hope to have this conversion done before the end of this fiscal year.
The future is extremely bright at Cps and Im not just saying that because I'm. The CEO , we have several large scale future opportunities in all three of our product lines Hermetic packaging armor and metal matrix composites. These opportunities are significant also within the markets, we are focusing on aerospace and defense and commercial.
<unk> electronics, the entire staff is working towards the growth in product offerings, while improving profitability.
We are quite pleased with our recent quarterly performance and expect that we will continually and incrementally improve as we move forward quarter to quarter and year to year. We are aware of the unpredictability of the Covid pandemic, but also hopefully as the year progress and the potential impacts to the business will continue to be less and less the impact of the unprovoked Russian <unk>.
<unk> of Ukraine should have negligible impact on Cps as we've had almost no sales in those countries. We have lots of additional opportunities today, both small and large that keep your entire staff focused on finding the ideal innovative material solutions for customers needs.
And with that I'd like to.
Take a moment, so that Chuck and I are prepared to answer any questions. They may be about the business.
Other fiscal fiscal year, 'twenty, one or last quarter and we're opening.
We are open to questions.
At this time I would like to remind everyone in order to ask a question you will need to press star one on your 10.
Awesome.
Again, Please press star one on your telephone.
Yeah.
Again to ask a question you will need to press star one on your telephone.
Question from the line that deepen.
<unk> sorry.
Sir your line is open.
Oh, hi, good afternoon.
Sort of a general question.
Can you say.
Say roughly how your business breaks out between.
Fade defense and National security and other applications.
Perhaps where you.
You have visibility on where that's going.
Yes.
Yes, so I think that.
I'm.
We have something on that in our 10-K, which obviously, we havent published yet but.
I want to state the defenses in the neighborhood of 25% of the business for 2021.
And we do we do think it's going to continue to grow but.
For last year's numbers its in that its in that range.
Okay. Good thanks, it's that kind of.
So that gives me a good sense that it looks like it's probably a.
Unfortunately, a general growth area at the moment.
Okay.
So anyway. Thank you.
You're welcome.
Okay.
Again to ask a question. Please press star one on your telephone.
Yeah.
Yeah.
There are no further questions at this time.
Oh, we have one.
Gregg Lowe.
Your line is open.
Hi, good afternoon, gentlemen, thanks for taking the question.
I'm just curious could you could you speak to operating leverage I mean, you had nice great topline and nice gross margins, but.
You had a penny in earnings so could you talk a little bit about what we should expect there on a go forward basis.
Yeah.
In terms of what.
Can you just repeat the question.
So you had very good revenues gross margins are back up into the low twenty's again.
And yet we earned a penny a share so I'm trying to what should I think about the opex situation. It sounds like youre, making some improvements there we need more top line basically to get more earnings.
Yes, we definitely expect more earnings I think that.
As we talked about.
That SG&A number for this year included <unk>.
Included quite a bit of expense that is.
One time due to due.
Due to the change in leadership.
And some of the other changes that we've made.
During mainly during the third quarter.
But.
As I said those are one time deals and I think that.
We should we would have seen an increase in earnings over all other things being equal we would have seen an increase in earnings over the year had we had we not had to incur those expenses. So I do think we will see much much better earnings going forward than we did especially in the first.
A couple of quarter first three quarters of 2000.
'twenty one.
Okay, and maybe just a follow on there in terms of gross margins what should we think about there.
Going forward, you're obviously doing a lot to try to streamline operations, which should help I assume margins, but.
Just due to product mix or whatever any any color. There can we deserve more gas in the tank here beyond the 22, you just put up.
Yeah.
Well, yes. This is Michael Greg.
Certainly, it's a focus of ours.
We continue to have issues there.
I'm very proud that we're continuing to improve the gross margin because as you know there's been quite a bit of inflation going on and it's been a little hectic as bay, which we can keep our cost controls and how do we control those costs improve margin and also I'll keep happy customers. So it has been.
A bit of a dynamic this I guess the second part of the year.
The inflation has really taken hold in the supply chain, but I think for the most part we've overcome that we're earning a little bit better I think the overall.
Slightly improved but we did have quite a few gremlins there we had a bad also.
As we move forward as the mix begins to improve a little bit.
We anticipate.
Continued progress.
Okay, Great Hey, you're definitely not alone on that front in terms of input cost inflation. So are there any escalators in your contracts or you got to go back basically and start to raise.
Prices.
Separately.
Well that's always.
A difficult issue so that some of our contracts are extremely long with our customers.
There are different provisions in each of those to address these things whether it be <unk>.
We will re re pricing.
Surcharge pass throughs etcetera, etcetera. So each of them are kind of unique I guess Greg.
Okay. Thank you very much good luck.
Thank you.
Okay.
Yeah.
Next question is from the line of Patrick White Your line is open.
Hi, Michael Hi, John Congratulations on upside here in the final quarter.
Glad to see you on the progress you guys are making.
I wanted to ask you a little bit about.
The hybrid arm of our business at.
It seems to in terms of the order pace will be a little bit lumpy.
Is that.
That's something that you think is going to be the case.
For the next two or three years, where do you think youre going to get to a point, where it's going to be a little bit predictable and the second part of that question is that you mentioned, 25% defense related revenue is that all attributable to hybrid armor or is there something else going on there and.
Can you comment on any of that.
Thank you Patrick for the question. This is Michael so the hybrid armour orders will be lumpy.
Which is not great. However, the good side is their rather significant and material.
By the nature of the industry that we are dealing in.
We are still.
Only halfway through our current contract on the hybrid tech demand for the U S Navy and.
Armour itself is kind of you get a big order you work it off you get towards the end you get another big order. So the Lumpiness I guess you were referring to Patrick is kind of there and armor predictability will occur.
Once we start transitioning some of these programs that we're working on today executing with the Navy and some of the ones, we're bidding on which our program of record.
Awards within the Defense authorization Act, so that will give us the predictability and visibility into out years of funding. So we're very.
Quite happy with our armor business, and where we're heading and giving that we're in probably year to a production now after five years or seven years. If you. If you take the longer view of R&D starts.
Have lots of opportunities, both domestically and international for Hybritech armor and.
We continue customers and nation states continue to see the value of our product, it's relatively light weight for a significant kinetic energy threats. It has incredible.
Properties, when you get into environmental conditions, and so we think we have just begun with our armor business and I like the way. It's scaling right now we're controlling costs as we scale, we have lots of large opportunities whether they be in the U S aviation community foreign nations and their ground vehicle community.
And we already you are quite aware of our our progress we're making in the U S Navy surface fleet. So.
Yes, we're happy with that but the Lumpiness comes with big lumps. So yes, I think when we look at the business as a mix of product lines performing well.
In the longer aggregate it will be just fine.
And answer to your other question Patrick.
That 25% is not just the navy contract that maybe contract has made maybe half of it.
Pardon me.
So.
Got it got it thanks.
And.
I can hear the excitement in your voice regarding that.
Mike.
Yeah.
And words.
We're looking forward to maybe mid decade, where does it stand at maybe 50% of your business, but I will say.
Yeah.
We'll see we'll see.
The other question I had if you don't mind is with respect to your mention of some new customers in RF business.
Ken we think of that.
Five <unk>.
So just how significant.
Might that.
B in terms of maybe percentage of overall revenue.
Helped out two or three years.
Well certainly as we continue to increase.
Aerospace.
Product offerings that has some visibility to us and some we don't have visibility into what the applications are.
I would say, it's probably more likely.
Space related and I don't know specifically do check of five G. I don't I don't think so but.
It's more of it.
On the aerospace side has led us into the RF microwave side.
Okay.
I have other questions, but I can step aside if there are others on the queue.
But.
I'll throw a couple more Andrea if you don't mind.
Go ahead Patrick over here.
Okay.
So.
And the power electronics space.
I know you all are.
Clearly suitable to the silicon carbide area, which is of course very suitable and.
You need the space.
I understand there's a bit of movement towards Gan in certain aspects of power electronics and even.
Lower voltage.
Applications in transportation.
Solar wind.
Any thoughts that you can share today as two.
Weather.
The technology will offer is suitable for more than just silicon carbide does it all civil work with respect again, which I think.
Generates a little less.
And maybe is that significant.
Your technologies that is important.
Well sure.
Yes, So let me just.
The comment that we are working with a lot of folks and the collaboration of R&D.
And future EV applications.
And you are correct there are.
There is a technology shift from the silicon die.
And that is going on and there are other applications other than al stick that we're actively working.
And all of that is working together and in and particularly the messaging of this week.
It's extremely optimistic for us where the president and the infrastructure folks are talking about renewed interest in domestic production.
So obviously most of our concern in this market does not get can we do it it's our competition.
And how can we be competitive to close most of those opportunities and right. Now we are doing well with R&D and our customers are inventing different products that are a couple of years out if you will Patrick right now and.
And we are a viable supplier of that.
And so we are interested I think.
The high voltage more than low.
It seems to be working for us but.
Our greatest advantage.
As with the SEC obviously.
Okay.
I'd taken if there's other technologies that you are bringing to the table that maybe haven't been announced yet beyond <unk>.
Correct and so.
Obviously, we at any time, we're a product based business Patrick So we have different products that are in production. We have products that are in R&D and a lot of times the cycles with our customers and partners is kind of close held and that takes years for them to qualify and get that product going by these.
Products that have been studied.
Several years ago and are stepping through the gates by which they become <unk>.
<unk> production.
Yes.
Excellent excellent.
Ken.
I'm going to keep on going with a couple more questions. If it's okay.
One.
Thinking out maybe two or three years from now $24 25.
You are looking to become a mid size company and I'm not sure what you mean by that.
But.
Can you add any color as to.
What you might be looking for in terms of it.
A model.
That investors can think about with respect to a handful of things one is contribution margins from today going forward.
And maybe growth rates.
And when I mentioned.
Attribute margins really just distinguish between gross margins, which I see as low twenties.
Similarly, your contribution margins might be thought of as something more like 30% or more because.
You're absorbing.
Your fixed costs are already zorba.
So you know might we be looking at 30% gross margin.
May.
Maybe a mid decade, if your contributions our margins are higher.
And then the gross margins.
Yes, I mean, I think that's certainly our goal.
Is to get up to about a 30% gross margin.
And we've.
<unk> gone from I don't know 'twenty to 'twenty, one 'twenty, one 'twenty two for the fourth quarter and we're.
Continuing to work.
Towards towards getting that number even higher end and yes 30.
Frankly, 30% is sort of the goal that we're shooting for ultimately and hopefully we can get there sooner rather than later, but we.
We think speak.
Speaking for myself on the finance side.
This.
ERP MRP systems that Michael had mentioned earlier.
Think are going to help us a lot in getting to that getting to that place.
As a quick check sure Patrick to your point is.
Obviously, we see there is a.
Our relationship between revenue volume contribution margin and as I mentioned earlier one of the reasons. We've made an investment in an MRP tool is as we continue to grow we wanted to improve our margin. While we are growing and so you can kind of.
See if you will I don't want to necessarily put a timeline on it but we are working towards ability to scale the business.
And I guess scale is probably a good way to understand small to medium.
Different ways.
Debt.
Speak about how we want to grow the business, we don't really quantify it a dollar thing, but we have goals, obviously year to year, but we.
We know that as we grow we need to cut and contain and keep our cost down so that as we scale up our margins improve and so that is actively what we're working on and that's why we were trying to share with you about the tools, we basically talk in terms of people processes and tools.
How we can as we grow the business scale the business.
Sure.
Sure.
Unfair to ask you.
And I'll ask it anyway.
Whether it's.
Conceivable.
Let's say you know.
With all of these initiatives you have in place that we could be.
It's not unduly both to get to 15%, 20% close rates.
Going.
And get this mid decade.
Yeah.
So bill.
It's a goal we've achieved seven and a half this year, we have goals that are greater.
But again, we're in a dynamic environment Covid now we have returned to almost cold War esque environment Theres. Some things, we can't control, Patrick but certainly from a planning standpoint, as a business we want to grow our business on all of our product lines all of our offerings in depth from <unk>.
Early technology levels to full rate production and that's ongoing and we think with the addition of this tool some of the new hires we've had.
We're going to put all these pieces in place during 'twenty, two and probably.
Give me a quarter or two Patrick can ask the same question, but that's the goal right.
Well I think I've done my part, but thanks for letting me ask all these questions and congrats again on the year and Michael that you seem to be the right Guy at the right time here along with Chuck.
And you certainly are in a dynamic space with all of that is going on both with conflicts as well.
Power electronics and movement to efficiencies.
Good luck 22, and I'm sure you saw from the weekend ticket.
Thank you Patrick.
Yeah.
Next question is from the line of Anthony Mike King Your line is open.
Hi, good afternoon couple of questions.
<unk> does inorganic growth play into your future.
In other words are there companies out there that youre looking at or that can pace.
Hasten.
Your level of revenue or profitability.
Well certainly this is Michael.
Certainly.
The base of our plan is continuing organic growth on the material science line.
Are we open for opportunities that are completely aligned with our growth strategy yes.
We actively seeking them we've made aware that we're here and we're opening a do we have a committed resources to that.
Not.
Not full time.
But I guess, we're open I guess would be the question for that but it would have to match with our strategy for growth right.
We wanted to be extremely selective.
Because we're having so much success right now.
And the history of M&A success.
It's kind of littered with.
Great successes and great not so successes and so I just wanted to be sure that we stay if you will under our skis as we continue to grow.
Overall for it.
But its not certainly a pre.
<unk> goal for growth, we think we have lots of opportunities the way we're configured today.
Right a couple more questions the new defense budget.
Does it hold any.
Is there anything in there that would directly benefit you or with any new programs.
Well certainly.
It's a large large document.
<unk>.
For the most part we have one component that's not in this year's budget, where would you think it's going to be in Palm 24, which is the U S. Navy's conversion of our hybrid tech AMR to surface fleet at the surface fleet.
Application. So that we are cautiously continuing to monitor but that is it takes a while to get into the defense budget I think for the positive side on the defense budget would be Congress is commitment to fund that small business innovative research program, which is why one of the reasons we've returned.
To Reenergizing, our services part of our contract research and development Congress is to firmly stepped up on funding the Spi. Our STR program. We have obviously with a few phds and material sciences, we have depth and reach to the academic side.
We have a few partners.
Currently Milligan University of Arkansas to name a few that we work with M. I T.
Obviously companies our company is used to working with these academic institutions.
That's a well funded program in this year's budget so.
I think if anything you could take away that one founded congressional research project debt.
That is based upon domestic sourcing and commercialization of products.
Exactly what we do so.
Yes.
Got it Okay, and then final question.
Given that it sounds like you're you're.
Predicting or forecasting higher growth higher greater growth greater profitability this year.
What are your IR plans.
Obviously, no one followed.
No sell side firms follows the stock on a research standpoint, I don't think anyone follow the stock to my knowledge.
What are your plans in terms of just <unk>.
I'm, making yourself more visible to the investment community.
Okay.
It's definitely something that Anthony that we're working on.
It's.
I think we recognize that we can do a better job in that area.
I think that it's something that.
Going forward.
Probably.
It's probably something that we'll be addressing sooner rather than later to do a better well, we will be addressing it to do a better job and I think that.
No.
It'll be something that that you guys can see.
As we move ahead in 2000 2020, and secondly, just to follow up on Chuck's comment. We did have a short list of for this year and like our Tradeshows Anthony wave we're getting.
Not that we don't want to go in a 10, but I don't know how it is in your industry in particular, but conferences that greatly attended yet with Covid and so we're we're not very.
Sure the conferences are going to happen and but we are we have a list of four conferences that were trying to get to.
And so with targeted them.
And I think we're working towards that I think in the past grant and Chuck our predecessors advertisement.
And we're trying to get back to that but I guess I was referring to.
Are you, referring to investment conferences or trade conference, it's because the investment conferences.
Now are beginning to go back to attendance, but there's a lot. There are a lot of conferences that are done.
Even today, virtually which I think would.
It's my suggestion would be to try at least once every several months at three months.
Do an industrial conference virtually so at least you are getting the word out.
Yes, I think it's a great idea.
Yeah.
Okay do you currently employing outside IR firm or is it just purely in Toronto at this point.
At this point, it's purely internal.
Got it okay, alright, well good thank you very much.
Thank you.
Next question from the line of Lenny Dunn your.
Your line is open.
Yes.
Hi.
Congratulations on the way you're running the business.
Yes.
I want to address the dilemma that we have is a.
The large investor in your firm.
Completely understood that you cannot disclose.
Those contracts.
Yeah.
No.
Our proprietary.
I also understood.
Got you.
Yes.
Uh huh.
A lot of guidance.
Because.
A lot of the contracts you have.
<unk> U K.
Antagonize the people that give you the the contract.
Uh huh.
Yeah.
It leaves us kind of in a dilemma as investors.
Because we.
Really can't get that our average route totally what's going on.
The reasons why you can't do those things.
But there is some things that you can do to give us at least come forward guidance.
Terms without being specific.
Yeah.
So that.
We have a little better handle on what we own.
Okay.
Got it.
Hello, Yes.
Yes, we're here.
Yeah.
Excuse me.
Well I think.
This is Michael.
Thank you for the comments.
We certainly.
Endeavour to get to that point, but we're not there.
We're sharing with you the most we feel comfortable with sharing.
We were trying to improve our communications with all of our investors about how we think the future is going to be how much more can we tell you as far as guidance I guess, that's kind of fire for US right now if you will but right now.
We are.
Trying to.
Walk aligned here right, we have customers to your point, we have customers that don't want us to disclose things we have.
Competition, we are Pandemics, we are more we have lots of things we don't control the things we do control, we don't see enough.
Two I think change decades of.
The way we've been reporting the business.
We tried to share as much as we can I guess, that's the best I can share with you right now.
Well.
That was encouraging.
A visit.
We welcome you to come and visit.
We can figure that out offline and we could show you more so yes.
Couple of problems that was the last week or so.
I've been in the hospital.
I'm recovering from Covid, so I can.
Come visit but but that.
That being said.
Yeah.
I am very encouraged by what I saw with the options exercise for us.
Obviously, you said he gets the message that you certainly believe that.
Everything is going to be very good going forward or that wouldn't happen.
But.
You know just it's just very hard to evaluate we shouldn't we thought about that discouraged at all long term holder may continue to add but.
Just just wish we had a little better way.
Of understanding where we're going going forward. So I don't know whatever you can make to we used to disclose a little more.
That gives us at least a better feeling of what we owed as owners.
Yeah.
Yes, I think certainly.
We will continue as you know in the past.
You know if we get you know major contracts that allow us to.
Two announced we're certainly going to announce those kinds of things and we talked a little bit about I think it was in December with our with our bookings.
Our sales bookings for the year.
We're double what 'twenty and 2020 in 2019 were.
So those kinds of things, obviously will continue to do.
As much as possible.
Okay well.
I've asked and whatever you can do to help a little would be.
Very much appreciate it.
Okay.
I'm good thanks, I hope you feel better too.
Yes.
Eventually yes. Thank you.
Yeah.
There are no further question at this time please continue.
Hey, guys.
If that's it Jeff I think on behalf of Chuck and I. Thank you everybody.
Afternoon for your time.
Hopefully you you feel like we feel that this business is doing well in and you know obviously Lenny pointed out that Chuck and I have.
Shouldered in we believe it is a good business and we look forward to talking to you guys more.
And welcome welcome to feedback thank you very much.
Good day, Thank you everybody.
That concludes today's conference. Thank you everyone for participating you may now disconnect.
Thanks.
Sure.
[music].
Okay.
Yes.