Q4 2021 Toughbuilt Industries Inc Earnings Call
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Reading wealth, MTV pastel fourth quarter and full year 2021 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the presentation.
Greetings, welcome to the tough, built fourth quarter and full year 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.
If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Please note this conference is being recorded. I will now turn the conference over to your host, Martin Galstan, CFO . Thank you. You may begin.
Note. This conference is being recorded.
I will turn the conference over to your host Martin Golf and CFO . Thank you you may begin.
Good morning, and thank you all for joining us today to discuss tough bels fourth quarter and full year 2021 financial and operating results.
Martin Galskan: Good morning and thank you all for joining us today to discuss Tuft Bills 4th Quarter and Full Year 2021 Financial and Operating Results. Again, my name is Mark Angostian and I am the Chief Financial Officer of Tuft Bills.
Again, my name is Mark and golf in and I am the Chief financial officer of tough pill.
Joining me on today's call is Michael <unk>, President and Chief Executive Officer of <unk>.
Speaker Change: Joining me on today's call is Michael Pinozian, President and Chief Executive Officer of Tough Build. Michael will begin today's discussion by providing operational and financial highlights from the fourth quarter and full year. I will then review our financial performance for the same period.
Michael will begin today's discussion by providing operational and financial highlights.
The fourth quarter and full year I will then review our financial performance for the same period.
Speaker Change: Michael will conclude the discussion with our growth plans for 2022 and behind.
Michael will conclude the discussion with our growth plans for 2022 and beyond.
Before turning the call over to Michael.
Speaker Change: Before turning the call over to Michael, I would like to remind you that any forward-looking statements made by management are covered under the U.S. Private Security's Allegation Reform Act of 1995 and are subject to the changes, risks, and uncertainties described in the press release and in our U.S. Security filing.
I would like to remind you that any forward looking statements made by management are covered under the U S. Private Securities Litigation Reform Act of 1995 and are subject to the changes risks and uncertainties described in the press release and.
And our U S security filings.
In addition, during the course of the call. We may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States and that may be different from non-GAAP financial measures used by other companies.
Michael Poian: In addition, during the course of the call, we may refer to non- GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States and that may be different from non- GAAP financial measures used by other companies.
Michael Poian: Investors are encouraged to review Tough Build's current report on Form 8K.
Investors are encouraged to review tough belts current report on form 8-K.
Michael Poian: furnished with the SEC for tough bills, reasons for including those non- GAAP financial measures in its earning releases and presentation.
Furnished with the SEC for tough belt.
<unk> for including those non-GAAP financial measures in its earnings releases and presentation.
Michael Poian: The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings press release issued earlier today, unless otherwise noted therein. I will now turn the call to Michael.
A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings press release issued earlier today unless otherwise noted.
I will now turn the call to Michael.
Thank you Martin and thank you all for joining us on today's call.
Michael Poian: Thank you, Martin, and thank you all for joining us on today's call. 2021 was a very strong year for Tough Build.
<unk> 21 was a very strong year for tough built.
Culminating in record revenues of $70 million and approximately 78% year over year increase compared to 2020.
Michael Poian: culminating in record revenues of 70 million, an approximately 78% year-over-year increase compared to 2020.
Michael Poian: The fourth quarter revenue came in at a record 24.7 million, representing a 105% increase compared to the prior year.
The fourth quarter revenue came in at a record $24 7 million, representing 809, 5% increase compared to the prior year.
Please keep in mind that based on seasonality the fourth quarter is typically the highest volume period over the year.
Michael Poian: Please keep in mind that based on seasonality, the fourth quarter is typically the highest volume period of the year. Revenue growth in the fourth quarter, as well as for the full year in 2021, was driven by a combination of onboarding new retailers, the introduction of new SKUs, and continued demand for our existing products.
Revenue growth in the fourth quarter as well as for the full year in 2021 was driven by a combination of Onboarding new retailers.
Introduction of new Skus, and continuing demand for our existing products.
Commscope continues to be a leader.
Michael Poian: Topfield continues to be a leader known for innovation and for developing some of the most unique products for the construction and home improvement industry.
For innovation and for developing some of the most unique products for the construction and home improvement industry.
Michael Poian: We believe that much of our success is due to our ability to attract the best talent.
We believe that much of our success is due to our ability to attract the best talent.
Michael Poian: Our unique platform has proven to be a tremendous draw for professionals eager to join an organization known for its creativity and ability to quickly and efficiently bring ideas from concept to shelves in a matter of months.
Our unique platform has proven to be a tremendous draw for professionals eager to join and organization known for its creativity and ability to quickly and efficiently bring ideas from concept to shelves in a matter of months.
Michael Poian: Our 2021 results are a testament to the importance of establishing a platform of strong teams demonstrated by our numerous product launches, including our first technology-enabled tool, the Tough Build laser line.
Our 2021 results are a testament to the importance of establishing a platform of strong teams demonstrated bar numerous product launches, including our first technology enabled tool that tough built blazer line.
Michael Poian: One of top build's major differentiating features, which we are confident will result in continued demand for our products, is the integration of technology which empowers our customers to expedite projects, automate processes, and track information all in one place.
One of Puffballs major differentiating features which we are confident will result in continued demand for our products is doing integration of technology, which empowers our customers to expedite projects automate processes and tracking information all in one place.
To help combat logistics related costs in 2022 we are negotiating improved shipping rates as well as working with our large retail partners to implement direct import orders.
Michael Poian: To help combat logistic related costs in 2022, we are negotiating improved shipping rates as well as working with our large retail partners to implement direct import ordering, where possible.
Where possible.
Direct import ordering would result in our retail partners, taking tough go products directly from ports and shipping to their own warehouses.
Michael Poian: Direct import ordering would result in our retail partners taking tough fill products directly from ports and shipping to their own warehouse.
Michael Poian: This would significantly decrease our shipping costs by shifting several supply chain steps from tough build
This will significantly decrease our shipping cost by shifting several supply chain steps from tough built.
To our partners.
This is a win win scenario in which our larger partners can leverage their existing logistics infrastructure to ship at cheaper rates, while allowing us to focus on designing and manufacturing innovative products, thereby enabling more lines of products to be shipped.
Michael Poian: This is a win-win scenario in which our larger partners can leverage their existing logistics infrastructure to ship at cheaper rates while allowing us to focus on designing and manufacturing innovative products thereby enabling more lines of products to be shipped.
Michael Poian: based on our current inventory and accounts receivable levels, as well as the revenue we expect to generate from new product lines in 2022. We expect our cash burn to significantly decrease in the second half of 2022.
Based on our current inventory and accounts receivable levels as well as the revenue we expect to generate from new product lines in 'twenty 'twenty. Two we expect our cash burn to significantly decrease in the second half of 2022 .
Michael Poian: I will now turn the call back to Martin to cover our financial results in greater detail.
I will now turn the call back to Martin to cover our financial results in greater detail Martin.
Yeah.
Thank you Michael.
Revenue for the three months ended December 31st 2021 increased over 105% to approximately $24 7 million compared to $12 million in the same period last year.
Revenues for the 12 months ended December 31st 2021 increased 78% to approximately $70 million compared to $39 4 million in the prior year period.
The increase in sales for both periods was mainly attributable to continued demand for our portfolio of products.
International expansion and demand for new products introduced a holiday season for the fourth quarter.
Cost of goods sold Florida, 12 months ending December 31st 2021 were approximately 15.9.
Martin Galskan: million compared to 24.7 million for the prior period.
Compared to $24 7 million, Florida prior period.
Martin Galskan: Cost of goods sold increased in 2021 over 2020 primarily due to industry-wide supply chain disruption.
Cost of goods sold increased in 2020 , one over 'twenty 'twenty, primarily due to industry wide supply chain disruptions, which have led to historically higher shipping costs as well as inventory build in the fourth quarter and increases in cost of materials.
Martin Galskan: which have led to historically higher shipping costs, as well as inventory builds in the forward quarter, and increases in cost of materials.
Selling general and administrative expenses for the three months ended December 31st 'twenty, 'twenty, one or approximately $19 9 million.
Martin Galskan: selling general and administrative expenses for the three months and then December 31st 2021 were approximately 19.9 million.
Compared to $12 2 million for the same period last year, selling general and administrative expenses for 12 months.
Martin Galskan: compared to $12.2 million for the same period last year.
Martin Galskan: selling general and administrative expenses for 12 months ended December 31st 2021 were approximately 58.4 million compared to 29.9 million for the 12 months ended December 31st 2020.
And at December 31st 2021 were approximately $58 4 million compared to $29 9 million for the 12 months ended December 31st 2020.
SG&A expenses increased in 2020 , one over 'twenty 'twenty, primarily due to the hiring of additional employees.
Martin Galskan: SGNA expenses increased in 2021 over 2020, primarily due to hiring of additional employees.
Martin Galskan: increased use of independent contractors and increases in marketing and advertising related to new product
Use of independent contractors and.
And increases in marketing and advertising related to new product lines.
Yeah.
Martin Galskan: Research and development costs for the three months and the December 31st, 2021 were approximately $1.6 million compared to $790,000 in 2020.
Research and development costs for the three months ended December 31st 2021 were approximately $1 6 million compared to 790000 in 2020 .
Martin Galskan: Research and development costs for the year ended December 31, 2021 were approximately 10 million compared to 5.1 million in 2020.
Research and development costs, Florida year ended December 31st 2021, or approximately 10 million compared to $5 1 million in 2020.
Martin Galskan: We expect to maintain similar levels of R&D costs as the company continues to develop new tools for the construction industry.
We expect to maintain similar levels of R&D costs as the company continues to develop new tools for the construction industry.
In the fourth quarter of 2021 we had a net loss attributable to common stockholders of approximately $14 5 million or a loss of nine cents per diluted share.
Martin Galskan: In the fourth quarter of 2021, we had a net loss attributable to common stockholders of approximately $14.5 million or a loss of $0.09 per diluted share.
Martin Galskan: In the full year of 2021, we had a net loss of $37.5 million compared to $17.3 million in the prior period.
And the full year of 2020 , one we had a net loss of $37 5 million compared to $17 3 million and acquire period.
Martin Galskan: The net loss is mainly attributable to the buildout of our design and engineering team and inflated shipping costs.
The net loss is mainly attributable to the build out of our design and engineering team.
And inflated shipping costs.
Martin Galskan: As of December 31, 2021, the company's diluted weighted average commerce shares are standing totaled $122 million.
As of December 31st plenty plenty of them on the company's diluted weighted average common shares outstanding totaled $122 million.
Yeah.
Martin Galskan: Following the quarter end, we completed a register direct offering for net proceeds of approximately five million, the proceeds of which will be used for working capital purposes.
Following the quarter end, we completed a registered direct offering for net proceeds of approximately $5 million their policies are which will be used for working capital purposes.
Martin Galskan: Although management is exploring alternative capital raising options, the team determined that due to the market's volatility and the company's low cash position from mandatory build-ups in Q4, it was opportune time to support its cash position.
Although management is exploring alternative capital raising options the team determined that due to the market volatility and our company's low cost position from an inventory buildup in Q4. It was opportune time to support its cash position.
Martin Galskan: As of December 31, 2021, tough-built cash position was $7.4 million. We expect our cash position to increase in the first quarter as we collect on our accounts receivable and translate our inventory into sales. This cash flow and addition to the recent capital raise will be sufficient to support our near-term revenue growth.
As of December 31, 2020 , one tough built cash position was seven 4 million.
We expect our cash position to increase it in the first quarter as we collect on our accounts receivable and translate our inventory into cells.
This cash flow. In addition to the recent capital raise will be sufficient to support our near term revenue growth.
Martin Galskan: I will now turn the call back to Michael for his final remarks. Michael.
I'll now turn the call back to Michael for his final remarks, Michael.
Michael Poian: Thank you Martin. Before I open the call for questions, I would like to reiterate the tremendous market opportunities that exist at ToughBuild and the infrastructure we have in place to capitalize on those opportunities.
Thank you Martin before I open the call for questions I would like to reiterate the tremendous market opportunities that exist that tough built and the infrastructure we have in place to capitalize on those opportunities.
Michael Poian: Right now, the top retailers around the world are selling top build products and we continue to expand to new retailers and strengthen our existing relations.
Right now the top retailers around the world are selling topical products and we continue to expand to new retailers and strengthen our existing relationships.
Michael Poian: Through our growing Amazon.com sales and repeat orders from our strong retail base, we are seeing increased demand for top-billed products across professional contractors and DIYers globally.
Through our growing Amazon Dot com sales and repeat orders from our strong retail base. We are seeing increased demand for <unk> products across professional contractors and DIY is globally.
As demand for our products increase we continue to expand our capabilities and are currently in a position to launch five to 10 product lines every year.
Michael Poian: As demand for our products increase, we continue to expand our capabilities and are currently in a position to launch five to ten product lines every year.
To capture additional international E Commerce demand, we will be offering <unk> products on Amazon in Europe , and Latin America.
Michael Poian: To capture additional international e-commerce demand, we will be offering top-fill products on Amazon in Europe and Latin America.
Yeah.
Michael Poian: As we look ahead, our future revenue opportunities can be broken into three buckets, expanding existing relationship with retail partners, adding new retail partners, and introducing new products.
As we look ahead, our future revenue opportunities can be broken into three buckets, expanding existing relationship with retail partners, adding new retail partners and introducing new products.
The revenue opportunities are dependent on one another but ultimately driven by end users recognition of our brand and innovations.
Michael Poian: The revenue opportunities are dependent on one another, but ultimately driven by end-users' recognition of our brand and innovations.
For example.
When we onboard a new retail partner. The first order typically includes a selection of portion of tough builds catalog of numerous skus.
Michael Poian: When we onboard a new retail partner, the first order typically includes a selection of portion of Tuftville's catalog of numerous SKUs.
As underlying consumer demand for the product grows the retailer is likely.
Michael Poian: As underlying consumer demands for the product grows, the retailer is likely to expand the number of products offering in their stores or made available online to their customers.
To expand the number of products offering in their stores or made available.
Online to their customers.
Michael Poian: Furthermore, as we introduce new products that are differentiated from their current offerings, our existing retail partners are more likely to expand their offerings to include those newest items.
Furthermore, as we introduce new products that are differentiated from their current offerings, our existing retail partners are more likely to expand their offerings to include those newest items.
Michael Poian: The result of this process and positive customer experiences is increased revenue on recurring basis for the long term.
The result of this process and positive customer experiences is increased revenue.
On a recurring basis for the long term.
To us this demonstrates the longevity of tough filter products, even our oldest products.
Michael Poian: To us, this demonstrates the longevity of Tuftville's products, even our oldest products
Michael Poian: are still increasing in revenue year over year with peak revenue potential ahead of us.
Are still increasing in revenue year over year with peak revenue potential ahead of us.
Michael Poian: We are building something great at Tuftall, and I truly believe that we have the potential to disrupt the entire home improvement industry.
We are building something great. That's helpful and I truly believe that we have the potential to disrupt the entire home improvement industry.
I along with the entire tough built the organization, including our best in class design engineers that work on never before seen prototypes for home improvement at.
Michael Poian: I, along with the entire ToughBuild organization, including our best-in-class design engineers that work on never-before-seen prototypes for home improvement, have full confidence in our ability to operate and design unlike any other company in the world.
I have full confidence in our ability to operate and design. Unlike any other company in the world.
With that I would like to turn over to our operator to begin the question and answer session.
Michael Poian: With that, I would like to turn over to our operator to begin the question and answer session.
Thank you at this time.
Michael Poian: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.
We will be conducting a question and answer session and he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line from a question. Kim you May Press star two if he would like to remove your question from the queue.
Michael Poian: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key.
Participants using speaker equipment, it may be necessary to pick up your handset before pressing the psyche.
Michael Poian: Please note we ask that you please limit yourselves to one question and one follow-up per person. One moment, please, while we poll for questions.
Please note we ask that you please limit yourselves to one question and one follow up per person one moment. Please poll for questions.
Michael Poian: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad.
As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.
Pat.
As a reminder, if you would like to ask a question. Please press star one on your telephone keypad.
Michael Poian: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: Michael and Martin, we appear to have questions from a few private investors. Will we be taking those questions?
Michael and Mark and we appear to have questions from Matthew private investor.
Last question.
Yes.
Okay. Our first question it sounds like.
Speaker Change: Okay, our first question is from Syed Hassan, a private investor. Please proceed with your question.
On the private Investor. Please proceed with your question.
Yeah.
Hassan: Mr. Chairman, I'm very much interested in your company's potential and your stewardship.
Mr Chairman I'm very much interested in your company's potential.
And you stewardship.
Speaker Change: I'm an 84-year-old guy. I put all the money for my grandchildren. Only one question I have. When do you think
It's a 40 year old Guy.
Out of the money for my grandchildren.
Only one question I have when do you think we will become truly profitable meaningful profitability will be achieved then.
Speaker Change: we will become truly profitable. Meaningful profitability will be achieved when. Thank you for your thoughtful answer.
Thank you for your thoughtful answer.
Thank you Mr. Hassan This is Michael C E O plus builds I V.
Speaker Change: Thank you, Mr. Van. This is Michael. See the old tough built. I.
Speaker Change: Appreciate your investment and your support in Puffball.
Appreciate your investment and your support and pesticides.
Speaker Change: We are very aware of being profitable. I'm hoping that within the next year or two we can achieve profitability, sir.
We are very aware of being profitable I'm, hoping that within the next year or two we can achieve profitability Sir.
Speaker Change: The goal here is to create meaningful profitability, that means enough profitability that we don't have to raise too often at least, and we need to build our platform of people so that I can put out enough
The goal here is to create meaningful profitability that means enough profitability that we don't have to.
Raise too often at least and we need to build our platform for people so that I can put out.
Speaker Change: products and cover the global landscape. After that, I'm going to stop hiring. We're not trying to make a 100,000 person company. I just need to complete the sales platform and the product development platform so that we can put out products fast enough and enough of them to get us to a green profitability. But
<unk> products and covered the global landscape after that I'm going to stop hiring we're not trying to make 100000 person company I just need to complete the sales platform and the product development platforms. So that we can put out products fast enough and also for them to get us to a green.
<unk> profitability, but.
Speaker Change: meaningful profitability. We can cut back today and become profitable, but that profitability will not sustain meaningful growth for the company. So that's why we are, you know, raising from time to time is just to complete those two platforms.
Meaningful profitability, we can cut back today and become profitable, but that profitability will not sustain meaningful growth for the company. So that's why we are.
You know raising from time to time is just to complete those two platforms.
Okay can I have one follow.
Speaker Change: Okay, can I have one follow-up question, then I'm done. Thank you for your very thorough answer. Can I ask the follow-up question, Mr. Chairman? Sure, please go ahead. Yeah.
A question and then I'm done thank you for your very well.
So can I ask a follow up question Mr Chairman.
Sure. Please go ahead.
Yeah.
My follow up question said is.
Speaker Change: I read your, I'm very much interested in your company. In your mission statement, or your vision statement, you used two very, very,
I'm very much interested in you had a company in New York, We shouldn't statement, how do you envision. This statement you use to really really.
Speaker Change: profound and meaningful promise, that those two words are emerging growth. Could you explain to me what does it mean?
Profound and meaningful.
Promise that there are still legs that are in my view the roads could you explain to me what does it mean.
Did you say the magnitude you have to build is a merging.
Speaker Change: you said emerges your tough build is a emerging growth company or an entity I understand a little bit but you have been very much active in transnational and multinational and you spend a lot of time in China
Good company.
I understand a little bit, but you are being very much actelion transnational and multinational and you spend a lot of time in China, and China isn't going to be a very important but it does so.
Speaker Change: And China is going to be a very important competitor.
Speaker Change: So, could you kindly explain for me, I am an old man, and to our other?
So could you kindly explain for me I'm an older man.
And do I, let I better.
Speaker Change: investors, explain the concept of emerging growth company versus an ongoing regular company.
This does explain that concept that's emerging growth company, let's say then ongoing regulated company.
Speaker Change: Sure, and emerging growth company, what I meant, at least in my view of the language, is really the, we are up and coming, fast growing company.
Sure.
Emerging growth company, what I meant at least in my.
We you have the language is really the we are up and coming fast growing company. Once we once we create this.
Speaker Change: Once we create these platforms that I'm speaking about the sales and development platforms around the world, you will see a rapid launch of numerous lines of products, which in turn will generate much bigger revenues.
Platforms that I'm speaking about.
The sales and development platforms around the World you will see a rapid launch all numerous lines of products, which in turn means generate much bigger revenues.
Speaker Change: and when we are saying we're emerging company that's what I mean we're becoming our flywheel is becoming bigger and faster and once that flywheel is at full force
And when we are saying we are emerging.
The company, that's why I mean, we are becoming or our flywheel is becoming bigger and faster and once that flywheel is that full force the leading sort of launching a few product lines a year and generating revenue by that time, we will have a lot more retailers around the world and launch hopefully.
Speaker Change: Instead of launching a few product lines a year and generating revenue, by that time we will have a lot more retailers around the world and launch hopefully 10, 20, 30 lines of products a year which will generate a completely different level of revenue.
E P.
10, 2030 lines of products or your which will generate a completely different level of revenue.
Okay.
Speaker Change: Okay, thank you sir for your good and thorough answer, I wish my company and your leadership produce some results for us. I appreciate your answers.
But do you have a good Antonio answered I wish My company and your leadership produce somebody's else, let us I appreciate your time.
Speaker Change: Thank you. We are working day and night to be able to do that.
Thank you.
Working day and night to be able to do that.
Keep it up so thank you yeah mobilized bye bye.
Speaker Change: Keep it up, sir. Thank you. I'm obliged. Bye-bye. I appreciate it. Thank you, thank you.
Thank you. Thank you.
Our next question is from Kevin Dede.
Speaker Change: Our next question is from Kevin Deity of HC Wainwright. Please proceed with your question.
H C. Wainwright. Please proceed with your question.
Kevin: Thank you. Hi, Michael. Hi, Martin. Thanks for much to take my question curious about a couple of things
Thank you Hi, Michael Hi, Martin Hi, Thanks, very much for taking my question curious about a couple of things.
Kevin: Michael, you mentioned switch up and distribution. How long do you think it takes to implement that?
Michael You mentioned a switch up in distribution.
How long do you think it takes to implement that and.
Do you see it hindering or.
Speaker Change: Do you see it hindering or, I don't know, just help me understand how you see it helping me.
I don't know just help me understand how how you see it.
Hoping the.
Uh huh.
I guess the flow of goods into the U S and in other sales locations.
Speaker Change: I guess the flow of goods into the US and other sales locations.
Sure.
Speaker Change: Sure. As far as manufacturing is concerned, we obviously started in China. We are in around six countries currently, and we are trying to do more nearshoring where possible. Please understand that expertise is necessary. The idea of
As far as manufacturing is concerned we obviously started in China, we are in around six countries currencies.
And we are trying to do more near shoring, where possible. Please understand that expertise is necessary and the ideals.
Speaker Change: Bringing factories home or doing near shoring or going other places. It's all well and good But the expertise and the quality and the craftsmanship of that factory Must be available plus components plus raw materials. So not every company is set up
Bringing our factories home or doing near shoring or going to other places, it's all well and good but the expertise and the quality and the craftsmanship of that factory must be available plus components plus raw materials. So not every company is set up to provide all those details for a meaningful.
Speaker Change: to provide all those details for a meaningful manufacturing. If we are not careful, the price of goods will be much higher because either they're missing the components they have to import from China, or materials, or their infrastructure is more expensive, or shipping is through the roof. So we are gradually taking steps. Gradually doesn't mean slowly. But the world also has to catch up with China before we can fully implement a full international manufacturing
Manufacturing, if we're not careful the price of goods will be much higher because either they are missing the components. They have to import from China or materials or their infrastructure is more expensive or shipping is through the roof. So we are gradually taking steps gradually doesn't mean slowly but the world also has to catch up with.
Before we can fully implement that fool international manufacturing base.
I hope that answers your question.
Speaker Change: I hope that answers your question. Yes, it helps.
Yes. It helps get can you talk to.
Speaker Change: Your SKU count now and your retailer count now and where you expect those numbers to be at the end of the year.
Your SKU count now and your retailer count now and where you expect those numbers to be at the end of the year.
Speaker Change: Sure, currently we have over 350 SKUs and launching a lot more products.
Sure currently we have over 350, skus and launching more products. The reason we were launching products. He is because the professional demands a widespread product lines. They don't want to go buy a screwdriver from such company and that drill from another company.
Speaker Change: The reason we are launching products is because the professional demands a widespread of product lines. They don't want to go buy a screwdriver.
Speaker Change: such company and a drill from another company, that's not how they operate. They want quality innovative products.
That that's not how they operate they want quality and innovative products. So we have about 350 skus retailers buying to it then we get recurring orders and once the doors are open with each retailer than we constantly introduce new lines and new products. So even the smallest accounts.
Speaker Change: introduce new lines and new products. So even the smallest account becomes a meaningful account down the line, let alone the big box retailers. So that's basically how we are trying to increase our portfolio and widen the offering to the professionals and serious DIYers. Okay. Thanks, Michael. Can you give us hard numbers on the number of retail partners you have and expect to have at the end of the year?
<unk> becomes a meaningful account down the line, let alone the big box retailers. So that's that's basically how we are trying to increase our portfolio and why didn't the the offering to the professionals that serious DIY ers.
Okay, all right. Thanks, Michael but can you give us hard numbers on.
Speaker Change: Okay, thanks Michael, but can you give us hard numbers on the number of retail partners you have and expect to have at the end of the year and where your due count goes to the end of the year?
The number of retail partners, you have and expect to have at the end of the year.
Yes.
Now that goes to the end of the year.
Speaker Change: Sure, the second part of the question was how many retail we have currently something over 15,000 doors that we are servicing over 110, 120 different customers around the world.
Sure. The second part of the question was how many retail we have currently something over 15000 doors that we are servicing over 100, 1000, and 20 different customers around the world.
Speaker Change: And we are trying to get to thousands and thousands of more doors. There's approximately 120,000 targeted retail doors with over 350 to 400 customers that are in our target.
And we are trying to get to thousands.
Thousands of more doors, there's approximately 120000 targeted retail doors with over 350.
Two 400 customers that are in our target.
Speaker Change: And then the third part of the question, which is how many skews, we will be adding many longer products throughout the years.
And then the third part of the question, which is how many skus, we will be adding many lines of products throughout the years. This year, we will be launching minimum five to 10 lines. Some lines have an excuse some lines have 72 skus so on average.
Speaker Change: This year, we will be launching minimum 5 to 10 lines. Some lines have
Speaker Change: and skews some lines have 72 skews so on average I don't want to give a guidance because of the world situation. It's kind of
I don't want to give that guidance because of the world situation, it's kind of hit I missed the exact detail, but we should be launching about five to 10, new lines of products. So we will be adding another four or 500 pieces of old products.
Speaker Change: hit and miss to the exact detail, but we should be launching about five to ten new lines of products. So we will be adding another four or five hundred pieces of products.
Speaker Change: Okay. Thank you, Michael. I need to turn the call over to other people, but I'll hop back into Q.
Okay. Thank you Michael I need to turn the call over to other people, but I'll hop back into queue.
Okay. Thank you Kevin.
Yeah.
We have reached the end of that question and answer session. I will now turn the call back over to Michael Nelson for closing remarks.
Speaker Change: We have reached the end of the question and answer session. I will now turn the call back over to Michael Panosian for closing remarks.
In closing I want to thank our employees for given tough built.
Michael Poian: In closing, I want to thank our employees for giving top build.
Michael Poian: all their efforts and turning public into a quality first brand that customers can rely on.
Oh, all their efforts and our attorneys tough built into a quality first brand that customers can rely on.
And remaining dedicated to our mission even through this pandemic and difficult time of distribution globally.
Michael Poian: and remaining dedicated to our mission even through this pandemic and difficult time of distribution globally. I'm excited for what 2012 2022 I'm sorry has in store for us and very confident in our ability to grow the company and get it to its profitability down the line.
I'm excited for what 2012.
2022 I'm sorry.
In store for us and very confident in our ability to grow the company and get it to its profitability down the line.
Speaker Change: This concludes today's conference. Thank you for your participation and you may disconnect your lines at this time.
This concludes today's conference.
Thank you for your participation you may disconnect your lines at this time.
Okay.
Speaker Change: Thank you.
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Yeah.
Yes.
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