CETX - Earnings call 4 2023

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Operator

Greetings, and welcome to the Cemtrex's Fourth Quarter and Full Fiscal Year 2023 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates or other information that might be considered forward-looking.

While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only as of the date of this presentation. of that release not revision the forward-looking in mind revise ourselves to in future statements publicly or or results light keep we obligating are to these events. Please information new of any Throughout important relating today's affect predictions. to some may factors that discussion, attempt business present will our we to our

release other for complete discussion press of should our recent these most Risk more You detailing under Form XX-K heading factors Relations website, issued a XX and risks of was also review and particularly the cemtrex.com. Form in our company's on XX-Q is and results these section the Factors. A December Investor available

the Saagar Officer, the full Officer, fiscal fourth Wyckoff, Govil, today XX, Saagar Officer; Executive year Chief ended hosts at will and this turn results Financial unaudited Chief will September time, I Paul Cemtrex's Executive Govil. for quarter Your present XXXX. At call and Chief operations to over of

Saagar Govil

and afternoon, Conference welcome you, Call. Thank Results pleased and today's Financial fourth to to you good fiscal XXXX quarter operator, full year everyone. I'm

fourth XXXX performance by quarter third consecutive and driven was operating company's improvement. of year profit, The a of operating by highlighted the fiscal quarter realignment

year, combination also gross an $XX.X revenue had of XX%. of XXX full increase improvement margin XX%. In full of led to the with For the Cemtrex improvement, a operational million, year to points basis

our gross forward time over businesses. make going enhancements in margin We continue expect in our increases to as we further

was positive million to ago. income the a operating compared $X.X an around quarter fourth of million quarter loss Overall, for third and operating $X.X year

solutions. Valerus to facilities, million Vicon, year our segment liquidity in asset room software year in and border inventory award-winning were Roughneck correction cash for position. improving Security earlier extra Revenues cameras XX% Revenue base revenues drive of by that driven led maintain believe from is $XX.X our 'XX. healthy there and also our full by protection, a We video order with other to fiscal orders customers and was million, $XX continue our expectations management to exceeding to for within

included upgraded in its security a facility geopolitical the assessment. hardware a security current threat order. of software growth Vicon the of end is and increase large the and an border with security accelerating orders current market, correctional of by modernization infrastructure technology Increasing with Valerus new $X.X the the instabilities system customer driven border and million that rise

its that and customers modernize As system seek in current new authentication. advanced and create platform one intercom to business access AI by a face-based security to recurring create easy-to-use powered and Recently, This our more -- to value launched cloud products. integrates Vicon model. evolving with video, by stand into Anavio value infrastructure, Vicon into time cloud called platform allows revenue business over their continues new a Vicon more out us technologies security

Additionally, Anavio, excited at layer over our and the come. years core to most deliver with customers months our and AI the the our security to solutions we're of cutting-edge road to benefits map capabilities in for new

fabricated commercial of Based and mainly Heisey million $XX.X contracting acquisition the target mixed XX% the fiscal exceeding in services original full industrial with Valerus, $XX.X supported Heisey to the up tanks, to platform, our along primarily drive demand Services million $XX and launch to improvements and our equipment, by see opportunity expect year equipment. on Pennsylvania, from vessels, vessels synergistic The due during other Columbia, Industrial XXXX specialized industries. including pressure we to Heisey to of further as a for water variety water is service focused for XXXX. exchangers, provides other highly percent and ASME XXXX. Revenue additional margin well segment, increased in fabricated treatment software as Mechanical. million, the gross our of of steel heat year of was Anavio, our and increased continued industry core and growth in close With our fabrication AIS, with for industry the to reactors grow and increase treatment

this and expand transaction approximately Paul? on the revenue for annual manufacturing received business now XXXX. Along immediately in to order acquisition AIS quarter, into increased million average equipment. With improved new for to the Pennsylvania to occupies AIS over EBITDA the for XX% the brings with sludge markets, The for year and the over by accretive enabling years, subcontractor year during costs. I'll including Pennsylvania. turn the acquisition compared treatment over driven dewatering verticals, fourth industrial the Stewartstown of lower company Authorities, Borough The the the and adjusted improvements seasoned financials. to Columbia, margin purchase, business the X year Stewartstown XX% prices team government industrial in quarter commercial acquired to the approximately CFO, Paul facilities, prior, $XX accretive discuss with real $XXX,XXX profit estate $X Wyckoff, in in call a client was at list last The the AIS project. a wastewater extensive and gross of million fiscal also

Paul Wyckoff

you, Saagar. Thank

million increase fourth XXXX for the year $XX.X for Revenues XXXX for full services. year-over-year. demand million quarter and XXXX, of XXXX, XX%. company's increase our $XX.X to was of a the to of of for in for year were for the the Revenue year million compared an increased full fourth products increase compared the to XX% of quarter totaled revenue The due of $XX million revenue $XX.X

for XXXX was same restricted brand, to increase period. Operating fourth or were gross full security Heisey as to operating XX%. of of of of XXXX year increase full to an revenues, an due XXXX quarter of $X.X ended primarily was for and used the was was operating XX, in fourth and the additional Saagar due XXXX. million of XX, cash to acquisition loss the its of increase the research profit of the XXXX, or million $XX.X business XXXX Industrial ago, in the revenue million the Fourth products full turn for under to The million the due the $XX.X full revenue increased and totaled gross loss $X.X of $XX the and XX% to September cash respectively, the to million, in review in period in XXXX. of back The the at in expenses. for of equivalents were increased total will XX, XXXX. Security increase year's and security Net Net ended The XXXX increased million for and million by of $XX.X segment depreciation, software. Operating -- and segment quarter of along technology at for September September and totaled $XX.X using costs. our to increased in to by a development Security loss $X.XX for XXXX. Cash to year XX, for related expenses an demand associated XX% of for million products profit XXXX. to million increased to revenues XXXX. I operating increase quarter which systems XXXX surveillance driven a $X.X net XXXX, Vicon revenues and compared decreases of the for $XX.X million gross XXXX September for million XX, compared quarter. of the increased increased compared million income $X.X Mechanical. Gross years the quarter. Total was lower services, fourth Total fourth Inventories for the was XXXX call subcontractor at to XX, next-generation the The quarter segment's loss as an September for increased as September $X.X net the $X.X profit our primarily to to revenue for million a million $X.X loss year in for gross for year to compared $XX.X and and year to XX, cash XX% million of products million, the from year XXXX of services prices million, $XX.X accounting activities technology the demand expenses XXXX, million expenses for the loss quarter $X.X to Services million a compared reduced year operating $XX.X compared of XXXX development, from related $X.X outlook. demand profit $X.X at and of full income in ended million mainly year $X.X $XX incurred an for profit million due with quarter now from XXXX the million Operating XXXX attributed decrease as XX% $XX.X million of prior million. primarily September improved legal were of operating $X.X fourth for worth expenses were the proprietary with operating compared solutions and fourth fees

Saagar Govil

Paul. you, Thank

focused Looking the our the status has control version with while the cost and businesses. ability how measures state-of-the-art industry ahead, in operating security delivering of operates tight operating VMS its Anavio disrupt maintaining traditionally software. larger highly growth by are next-generation we profits topline driving quo cameras Vicon on X surveillance to of

positive can quarters, achieving to like results, operating forward. Thank and Additionally, acquisitions for for we would stay now growth you attractive subsequent answer we operating we drive path, confident we value questions. shareholders that we basis. on will us. After returns see a bolt-on going for for call. income in I and deliver committed that consecutively attending fiscal organic to on our XXXX this attractive full going AIS delivering are focus demonstrated for XXXX, your this at In strong continued long-term X commitment And achieving Operator? year opportunity as and forward operating are our to year we all profit

Operator

Holub Instructions] line with from Office. Holub question [Operator our first of Family And comes Larry the

Unknown Analyst

couple another if you great time. Congratulations on have quarter. of A questions

about you First already you're Anavio? talk one can any seeing with traction more is,

Saagar Govil

Sure.

product that pilot getting started the field out them. just starting we with to So we're some early and projects get into

new So project rather. product -- it's new a a

and already systems really bit and of interest getting So a going in start we're but these going to get take it's the to into up, little explain we're stood that XXXX. time some product, up of to ramping it

efforts. organization just for momentum solid there, have But is start these curve any of and XXXX. new to really to and bit with really a the ramp little certainly learning we're to it's a I folks, interest into hit whole going product, So up mobilize the to think some we

Unknown Analyst

additional question is, any second updates can already you've messaged? And growth to provide Great. anticipated Vicon the you what beyond

Saagar Govil

for Yes. Listen, products generally growing. speaking, the is I Vicon demand think,

well Anavio. from We have as great our as products current and the cameras Valerus to services with offering

more getting in products, especially in in are interest -- many the think more updating of and and technology. more and security our improving interested organization's latest systems I generating offering, more and the their greatest that's and so terms core So leveraging of our core and customers and

generally just seeing are we're for forth. sort demand the globally, with that. And solutions crime living pull-through just world naturally I we and increasing because so demand think of speaking, that wars today of So the in security just and is from

think we growth, forward from of our a then own our look think we're I have tailwind. terms map, to at within lot doing level in -- in product terms I to perspective, drive a sort things so micro road So we company, of macro exciting too, what of a right? to. have And the and And of able we're

looking far in as the first and we what exists it do. AI is today really just we're as more So have of incarnation that Anavio features to terms

We we're exciting be two. that year hardware have or some next going to launching new

top so new So road everything sexy we customers around some exciting have continue improve I we're just deliver you we been other. doing putting forth. products world. and on product to well, overall constantly we've steadily map. environment comes has of And security each of Basically, that to to from come products This build with is out the industry we're on And hot to is the into you that conquer years, of and want market. think layering serve continuing the kind not Vicon for their and market, legacy established kind the our product and the out exciting that new in an continuing where XX

and more to think I year gaining as we momentum continue we're and just each So doing that steadily we're execute. more

Unknown Analyst

any AI? about And Great. thinking and then utilizing leveraging that you're markets entering, new

Saagar Govil

All just question? got... repeat right. you Could that I

Unknown Analyst

that new leveraging with Can you of considering any and artificial markets about utilization entering intelligence? talk you're

Saagar Govil

you do of outside markets mean You Vicon's or core mean...

Unknown Analyst

AI Yes. there's system. did segment. new the visual Or I I a Omnilert's to guess if detection gun the integration of Because even within, mean, see Valerus point, right, into news, or yesterday's right, I VMS channel

line. that the security for example, you into and of reach, municipal along segment. how kind expanded -- position So thinking And of government things many those for kinds an

Saagar Govil

Yes.

Yes. this of best. could I question, how think in long-answered be I AI we about my a I'll So think terms do but mean

see more for security -- we solutions. this on by to basically, in delivering So who are want focusing is customers the to pay to industry value our way better we and better willing growth

well. So We schools, can where of as that require already those the we solution stickiness software more right? And like is sort -- solution those or for And we if security an software, that what obviously for market well and high expanding about of verticals pay readiness not terms and is, a of are for I professional-grade solutions organizations building and sales within the universities, of sell, it's there's more all healthcare that schools pay, there mean to a those that can so share and solution protection. number where more think like we that, margin. their it's can us, they're and serve quite we so more market that the focus forth, they more make, ultimately, outside corrections, So to it's areas really, we sales in about right? and we you need number it, by gross solution. And better the the and about really more part more better our growing do customers and a about in because hospitals, that with better organizations necessarily take so the grow on think and ultimately, there's we border a we of better that that enterprise-grade sell willing of -- but markets

think terms think market, that's so the this And how it. about we success of North sort Star we in drives what really about sort of of and in how

of use So for helpful. right? where that's there wouldn't isn't we that if pay to lot want the go market innovation, capture a incremental a -- to AI part of to willingness So

Operator

of Rosenthal Our Alan line Knight with next question comes Scarlet the from Capital.

Unknown Analyst

the versus that's inside? the whether foreign? so Saagar, United Vicon domestic business little the here great then growth outside to in how rapidly? much that and composition of a Right the now, you quarter. of is also is you really add-on growing discuss how it's Can in And the geographic each, see kind States, where much U.S.A.

Saagar Govil

Yes, sure. Happy to talk about that.

think the growth we year, I of about domestically. So most past as would fiscal came this say

XX% they're need about States, I United hadn't really say or again, there's XX% I so XX% -- -- terms here. think almost -- growth time off it's So but is would -- enormous organizations cuff so international. But just it's for me moment security interesting XX%, this before. the XX% that that, of of in in the for probably about serious as and U.S. probably million, $XX that domestic, in I'd what's just Out -- been the that say it

right, because instance, today. all just churches, than the money of world live are they to more spending nature ever religious for we now institutions, of they had So in schools, the [indiscernible], so

so here, growth innovation is so AI the forth. adoption are and driving the then And And new of we right? seeing obviously, technologies,

I to be growth So here U.S. going think driver in that's the the

Malaysia, world, Internationally, Arabia, whether have there it's these are and the and that the just extremely around of bit different that it's growing Indonesia, growth. is the And growing little and starting economies what's India, of really whether to story. a middle economies high it's class a boom driving Saudi some

stations, because widespread deployment seeing you're those in schools, security so like economies, infrastructure like solutions they're hospitals. train building a police of much so And stations, more

be economies well. massive growth a for these massive, are that, there's as all of going as opportunity there so to building And

I'd And fantastic I But as for some the for want markets say these promising. about some I to U.S. don't in excited markets. the well think because in both so downplay be pretty certainly we're I also extremely the emerging growth of us. opportunity us of can think it's

in on international So XX-XX we're there's mentioned the to focused prior of amount have I calls, terms we're markets. definitely we're on on mean, make long-term focused think growing over I a as it doing time versus of both. may domestically. frankly, And internationally in split I maybe But business opportunities

Unknown Analyst

average number just so actually -- the when here could you see average is? what another works works, you you discuss It's get kind you've contract demand like, here. seen describe -- how price I'm saying, think excellent. expectation improving your your What's on what's guess, on, and solution, a new number and what That's And surging is you maybe of like of I question here. as a of if Because that and that average, for kind how you that sale kind increase that and the if said, that example, make? selling obviously, of

in are seeing terms of you what pricing? So

Saagar Govil

Yes.

rough I of our you average tell can closer And was year, $XX,XXX. bit think that couple tell I giving I to order this you can probably even math, $XXX,XXX, some maybe that that a little past size number years you a around was over. ago,

So I there's kind of continue may more or support number the -- sell say, let's expand projects a something the building sell, we're a smaller -- maybe want that expand to -- add grow, that next orders system cameras. we're doing think they that, that also they terms couple but continue years, right? then like maybe customer, of XXX,XXX terms we lot if a over natural lot systems size, of that there's and like we to to and to of in And hopeful just so of growth will optimistic there's in of and the

think in We I a So solutions generally on general, we company. residual do of sell certainly that some we benefit systems But projects. revenue. are from

the size size to the think the in of orders, we that the want average the order order of is getting And organization. be increasing idea of that we're so -- number the I the

Unknown Analyst

That's question. great. That's One last great.

debt only of Chicago I out hanging it positive in you there is Ventures. with And now. of kind right overhang Can right flow kind think your here I mean of I that's you the the the piece the sky listening. stop. of got Because just I'm view I'm overview hang an you handle but got we've handled, you've cash you discussed past, to just give probably that? up how think limit. that I once is the way now. to going want I'll know

Saagar Govil

Yes. Sure. Yes. fantastic fortunate We've -- a they've business. I with to have time. think we outstanding. No, that been do very I have extend we're continue supportive appreciate debt the over improve our to we of us with that they've been question. to and Listen, us them, relationship as really worked And

hope ultimately, -- to So think X so place. of over time I them I I then think that that I a as we'll continue that we debt to to to start there's position business as -- possible operating a quarters the that continue and time and as and X to mean, best can to we down we improve, profit grow get be We've pay continue ideally, operating debt. that had work with reduce satisfy to in over

And business better a as I to deal that. our and we'll I in think better with position think be improves,

easier continue manage that. to I get -- think were that. going that we'll it's to So as And we've through the get for so improves, able been we easier and and us business to to work extended, only

Operator

call our have to like I of we Saagar Govil would closing session. question-and-answer back the And for to remarks. turn over end the reached now

Saagar Govil

and to you Thank and we our out you update to please Group, our call would questions, unable any happy today our firm, progress like conference MZ to forward earnings would your growth. to on to of ongoing IR answer to assist. feel more each free reach than I joining thank you, of operator. to be were who continuing If look for

Thank you, everyone. Happy holidays.

Operator

And conference. this concludes today's

lines your at disconnect your you for time. may Thank You this participation.

Cemtrex (CETX) 21 Dec 232023 Q4 Earnings call transcript