CRKN - Earnings call transcript Q4 2023 | Crown ElectroKinetics Corp.

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Operator

Good morning, everyone, and welcome to the Crown ElectroKinetics Corporation Fourth Quarter and Year-end 2023 Conference Call. [Operator Instructions] This conference call is being recorded. A replay of today's call will be available in the Investor Relations section of the Crown's website.

I'll now hand the call over to Jason Assad, Director of Corporate Communications for introductions and the reading of the safe harbor statement. Please go ahead.

Jason Assad

operator. you, Thank and Call. everyone, Crown's Quarter Fourth Good welcome XXXX Year-end morning, to

With Doug Officer. call Executive the us on today are Joel it's Officer; Krutz, Croxall, Chief Financial and Chief Crown's

you Securities Before I'd Section as amended. forward-looking from XXXX the the management we our amended Securities and XXE of of call within as meaning XXA like remind and statements the begin, made Exchange Section contains Act that to Act certain the today's of of XXXX of

projects, intends, expressions to Factors XX-Q such statements. company's report plans, should, on at the are to to of may, are hopes, estimates of the company, the are the and numerous forward-looking including as variations for anticipates, SEC of which documents words beyond website such those XXXX Words Risk subject of on expects, many copy quarterly section These set filed statements Form identify available are the quarter believes conditions, SEC's the and forth ended control fourth similar these and with of the www.sec.gov. in intended

those this may required law. update or revisions materially changes for these from date obligation statements. expressed undertakes as results Actual forward-looking statements implied by to the after or call, The company except differ of such no by

to this Chairman pleasure at Now time, CEO it's introduce and Croxall, Doug my of Crown. Doug?

Douglas Croxall

year-end call. earnings XXXX and Jason, and our everybody, welcome, quarter Thanks, fourth to

I'll and start to about then first, like today's Fiber I'd talk division Optics about call talking film our by division. our

with time our embarked efforts Crown XX-inch-wide some of ago European The to it's for develop As quite has film. internal combining one vendor. working its of path a Crown that embossing many been techniques involved of you towards the know, achieving path master on

with Crown leading something learning create but had done has our has delays be progress. to that unpredictable. inherently before. came Technical to attempting mastering and been factors development, many eventually discovery the delayed critical can often that is never Crown that

Gen this of Crown's on had insert. you XX-inch film February team the As year, smart XX solved EK its the we recall, may X for window announced challenge mastering

required, remain this Also announced quantities milestone first we replication, With joined is August frame Crown behind as of product this senior has a adviser. minor position refining start us, including technical that Sheldon great tooling shipping in time small summer. in to some July, in Davis a recently

you see that well positioned look you of immediately Crown's If for exact Sheldon's work at will history, growth. stage he's

XXXX, at Sheldon Importantly, Koch since Industries while have Industries, working Guardian each and I was company. a known other he

He's commercialization is manufacturing important like knowledgeable of the liquid efforts fortunate time, very electrochromic, have launching spearheading will smart technologies at proven crystal. about to with window Sheldon and our skilled us our ink process. this and glass Crown formations, experienced he's different windows, SPD glazing Crown knowledgeable excited to executive, he towards our now insert. have lead feels an X such Gen where working

it's in that like say it think advanced if now development, to talent Crown to wasn't this safe Sheldon. find would its I technical difficult executive it attract at stage

and pricing more to wins as Going margins. details forward, timing, on capabilities, as revenue expected expects customer provide product well and Crown

Our Gen start map X immediately. product will road

quantities in to inserts limited in time XX with is start to X buildings the will small August to to send We The shipping quantities approximately X frame. XX objective July, each.

buildings cities X, We in products, we what and Los the be July, buildings alpha August X Gen to City. to frame. like Dallas, We'll cities again, call Bay in in expect York have product to lined Area, X Chicago already expanding Francisco alpha San the Gen Angeles, and located up time we Gen New ship

time the X end early but Charlie fall, we frame. Gen have of will early introduce will towards Alpha X towards the beta X and product Gen November limited summer, Our insert end features, Gen smart the window of product October,

from window Gen X [ insert entirely those smart Xth us production. so features our Gen during for The gather alpha scale to approach better process, Each company month, added the X feedback to but Also be the we not our to X we the with we design exploring product additional ] allows best with smart can manufacturing customers and our thin only also Gen beta Gen possibility we'll X- to to product film, lines X and of window will film rollout Sheldon's existing releases. our Gen have each X be so guidance, that X rollout. can window exploring using manufacture inserts. The existing of the way accelerate will assemble phase manufacturing partner meeting Gen

fiber the to Moving optics division.

over this Crown As you how The decided [ its lessons ago, provided market. within you of talk to have Crown great optics made a last not were months also Many but XX in ] to curious investment year know, initially direction. why fiber construction about only hard a deal Crown operate little first the very move a in as market, it. and

While Crown division, solve could the Film when we not predict issue, to -- with ultimately EK that it's that was confident mastering could exactly occur. would always not it proud

and know happy revenue The fiber Florida technical construction our generate decision has you revenue benefiting the earnings, effort I'm of to year, an optics done in market reached Crown and so announced described both buy while in directional eventual recent January our last our to to drilling Arizona assets market Crown milestones in that in market. recently generating let shareholders, is earlier. the

of revenue market Corey a direct given allows of directional but positive Arizona been serving drilling, Crown an in operating immediate not Crown trenching is has only outside to micro Crown's the has Boaz. market. our President Crown model X. Crown its starts the Fiber, has and Corey generation, cash also affected be with day that efforts opportunity to brought horizontal project grow Arizona The recently opportunities flow also positively a from Crown announced to of result While on Florida

flow within revenue-generating him allowed significant build its drilling generate phase directional revenue cash connection as business miles has recently of awarded to announced Crown has an million. is the proven expected first estimated market a term. model is near leverage been has also to Crown Analyzing that pipeline positive of of Florida also its very horizontal -- pipeline in The the XXX Crown $XX opportunity, and credibility projects. with

promisingly Crown at rate to and more production production. and hire been can Crown and earnings. work begun a and surpassing without leveraging day. guaranteed meeting and it known the already margin to production can have selecting revenue in Crown more and significantly scale expects carefully production based adding This lock has on model generate returns outsourced subcontractors targets rather need allows by every to more daily people, Crown of subcontractors,

appropriate. resort work there expects March miles an later. initial to underway, miles With an the additional on we Club XXX provide The awarded the XXX we we update executed X,XXX-acre announced is when had be a remains with Twin -- in plan that an development. the will Cabos, X, that agreement Mexico. On Club Dolphin announced Ron Twin -- Crown Dolphin Los master located

slant value payment, division similar expected nature. spring the Fiber upfront a for of frames. is ocean in to Corey and freshwater that early to calls total of lead expected will $X.X conclude we've $X.X is provides plant for residential this desalination The surrounding The time a agreement start construct led received which already million million Crown's the other fall a the with project wells Optics projects development. land to to hotel later by from and and water

and lead generated electrical company's be complementary This optics into revenue was and Crown opportunity to beyond new irrigation Corey. to and equipment in building President, new managed agreement well Central to work This and opportunities will Fiber should like verticals able America the Mexico, The Caribbean. approach and by fiber expand personnel slant illustrates are the traditional work.

opportunities. generates Importantly, to cash agreement to upfront lead is the anticipated and other

and this anticipate guidance, providing pipeline, actually will you the we With the end this towards more financial financial while call. the of agreement in Joel guidance here give closed

with it over the I'm comments Joel, at With to some close that, turn going and Joel? end. I'll to

Joel Krutz

Doug, which Thanks, to our NASDAQ which everyone. QX received for a put XXXX. results. an XXX would status. the on days, firstIy for of on now wanted good to walking consecutive our Crown's bid Today, October price and noncompliance provide financial straight update May NASDAQ We I with current from meeting We I'll XX notification scheduled But above gave extend into XXXX days a the XXX XX, further process Panel through have be morning, Hearings us Crown $X days. noncompliance NASDAQ

with the see financials will production, and confident improving Crown's bid pipeline closer to We're current much of company's couple threshold. growing that quarters progressing the compliance price another

to that company updated. course, the to options listing, other NASDAQ we has keep We you and will, retain ensure we'll our ensure also of need

consisted ] Crown of million which for expense quarter. Total operations was division the the operating corporate financials the cost is executed net the million Now $XX restructuring, expenses the our were booked which to also were optics to Crown's the Total losses ended were other revenues the Fiber related XXXX $X.X the to $XX.X majority $X.X which net includes Film division, million the XXXX, the debt. Net million research development, in This and fiber's million. million December impairment eliminating attributable were revenues, fourth of all base. compared XXXX's $XX.X XXXX to half million, and investment were for $XX.X in loss of film, million, XX, business, related than XXXX. lower ended and $X.X balance sheet $X.X of first million fiber which amortization year million, the to million to new which loss related This million of included XXXX, $X.X cost primarily year and in which from depreciation, with $X.X $X.X for was $XX.X of [ loss. and noncash of

of was year-on-year. to is establishing $X.X due the This there in million is division. Fiber Finally, expense, $XX.X higher SG&A all investment million which

increased $X.X frequent its million December by to $XX.X of $XX.X from stock from equity and $X.X million net million, $X XX, year preferred were subsequently and coming Crown fiber cash million $XX.X million which the with from XXXX, common the debt issuance business. deploying coming capital extinguished. issuance, raised for For million notes, financing from operations investment company in cash activities the million with ended $X.X

XXXX, equivalents As million. of December cash $X.X cash XX, and were

note capital on and capitalization structure. Just quick Crown's a working

company. deploy with year. -- our will in markets. lending company's the scale on reliance project have revolving which balance restructuring been reduce successfully growing working capital sheet, back access to as we allowing levels capital operations positive, lower turn to however, credit help to do importantly, fund after and recapitalize, half of soon, a the financing This debt we on to company's the have company of partner. eliminating should this work until We flow of and the reliant rebalance serve we new we equity This the multiple cash a support across the financing line equity and to So heavily structure, needs will dilution

now indicating QX $X.X our million would would net guidance land issued a levels losses XXXX and to and the expect sequential between now and This Due I'm Florida that $X XXXX recently as that to revenues range $X.X to Finally, top million, business, and QX compared million. line established reminder, QX revenues million pleased $X.X would we increase between announce million we represent tenfold improved and we in have. a $X.X between $X.X million. and exemplify momentum recently of production

now second to revenues our we guidance line mobilize I'll that pass expect make between we our and further Doug. our with million be look strategic operations new still We quarter of back to also And progress $X the providing and recent to new ramp concludes customers. goals. into $X in forward up continue as with you updates to Florida financial the as against million update. We markets

Douglas Croxall

Thanks, Joel.

just provide forward we'll that comment on going guidance. guidance. way The that handle So to guidance going is to we're

when give do call next for mid-May, we guidance -- for QX. we'll QX. we'll only provide time, but likely will for call guidance earnings At Our we not be our that provide QX, when revised

QX, provide for And do we'll QX. guidance for and provide mid-August. same then We'll the we'll in updated guidance

Joel It's position we As But towards take of we more is great in as the pipeline fiber for opportunities we'll And have we XXXX. our mentioned, business, the our of build construction growing. new to significantly. growing working in a the that year build predictability be revolver think pipeline calendar and capital some with market. end we'll our this the of advantage

the And operator. back with that, over to I'll hand it

Operator

Thank Thank call. for you. today's presentation. concludes you attending This today's

You may lines. now disconnect your

Crown ElectroKinetics (CRKN) 1 Apr 242023 Q4 Earnings call transcript