CAPC - Earnings call transcript Q4 2017 | Capstone Companies, Inc.

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Aimee Gaudet

Thank you, Doug. And good morning to everyone.

On the call today is Stewart Wallach, Capstone's President and Chief Executive Officer; and Gerry McClinton, Chief Financial Officer. They will be discussing the year end results, as well as give us an update on the strategy and outlook followed by a question-and-answer session.

If you do not have the release that was distributed yesterday afternoon, it is available on the Company's website at www.capstonecompaniesinc.com.

we forward-looking aware, presentation. during are you may statements make today's As could results statements which we well uncertainties, that events to are as the subject factors These future and today. are apply from differ to materially to risks other cause where actual as the Securities at These are and which be found in Exchange or our by at the as well earnings Commission, factors filed release Company capstonecompaniesinc.com www.sec.gov. in as outlined documents with the can Stewart. I'll turn it that, you, to With over

Stewart Wallach

Aimee. morning your good you, time with appreciate Thank everyone. I And to us today.

review Gerry McClinton moments year introducing strategic I performance has Before results, the the XXXX. would discuss to to planning few the a to end it how financial contributed take financial and company’s like strong to in

his during financial year. a you with review, for have record well. record the share will of XXXX-year Gerry This heels posted the follows revenues course on of as we end As

XX% product record in result revenues and in a quarters of XX% was two growth Qs were in weakest revenues year extensive an three. the which our quarters. two approximately revenue one, of Qs Our historically those and and one earlier extension which approximately higher, line are produced

X.X year’s So XXXX a QX of on this had clearly impact numbers. our significant million

in Our strategies. new our vitally product roadmap remains important forward looking

after on by will outlook of the followed volume Gerry a in that We this expanded in which bit R&D can efforts again not new further highlights but are this only where introductions. determined to continuing the would a McClinton product be elaborate question-and-answer Gerry’s to invest review time, on like resources I and and identifying comment Capstone and the session. we the will innovativeness I categories exploiting of our I introduce At make review. stimulate company’s are following financials to an will impact to

Gerry McClinton

been a Well. debt say, goal important major most record has you, XXXX free some company revenue we for totally ended morning, me everyone. let time. for another this And Well year which Stewart. good Thank breaking and strategic

December So, let’s That’s were review or the approximately $XX.X numbers. Net an ended XXXX. that’s XX% $X.X from record. in revenues million, increase of million the XX, XXXX year million $XX.X for a

Now we significant provided allowances number. to contributed XXXX, therefore Duracell evidenced Marketing continue grow in In million reduction support we which for $X.X retail net allowances, and in to revenue Hover programs. and consumer rebate as advance reported and growth are to the the sales already accounted the reported programming.

countries of were million million For X% the $X.X year sales licenses December in compared XXXX. on The of of impact to international or in-home particularly XXXX, vary net in referred X% sales use or approximately $X.X revenue be in revenue as XX, net as international improvements fact, may private in U.S. certain will controlled own their clearly Thailand, we not as to markets as recognized that's XXXX. found profit million Cost in brands the of they're respectively. for $X.X by resulting the sales $XX.X increased or or increased $XX.X to XX.X% XXXX and year December of million Gross revenue in XX.X% and sales. revenue XXXX. the the cost from and or an $X.X XXXX million million were from million revenue, XX, brands. XX.X% respectively or million net $X.X increase and year-ended $X.X of net Gross that to Gross XX.X% profit profit was for

over million increase This XX.X% million year-ended revenue remain That's revenue were cost the for to or Total of operating steady material is approximately respectively. stable for a XXXX. XXXX. reflecting remains XX.X% at XX, As XXXX in revenue, XX.X% XX.X% or costs $X.X that million of or the $X.X and net years. and of percentage the December $X.X both an XXXX expenses

XXXX higher Operating million force. XXXX. Agent royalty $X.X December million increase, Advertising income increased fees XXXX $XXX,XXX which for sales the also the by $XXX,XXX and commissions and and increased from show marketing Now expenses. sales resulted on year-ended Of license increased from $X.X in XX, $X.X and trade increased of this came also $X.X paid million was volume. expenses to respectively. sales million

Now expenses or as $X.X increased That's expense reduction XX, with operating I December income $XXX,XXX the and XXXX XXXX by XXXX, of consistent just remain although to, and $XXX,XXX operating was year-ended for Interest alluded a million. $XXX,XXX respectively. XX.X%.

year-ended of strategic a XXXX $X.XX XXXX and goal was and debt. elimination tax $XXX,XXX for expense for XXXX the from respectively. corporate Our and was reduction million, the interest of December income Provision stated XX,

its an losses. Now $XXX,XXX forward operating previously from that's increase net of company exhausted carried now has The XXXX.

We provision. that the million year XXXX full now $X.X $X.X and and respectively. million ended XX, December for we are was must a provide tax for in position Net income XXXX

increase looking Operating expenses XX%, $X.X had of was a XX.X%. record. or Now a result $XXX,XXX million Gross tax from the down XXXX. $X.X million $X.X in summarizing a increased million up XXXX, were from of highlights up $X.XXX income for and $XXX,XXX then million, financial $XXX,XXX million the increase Revenue for up million an of million, and XXXX. of down to that’s XX.X%. was Interest million, XXXX, was $XXX,XXX provision tax make. or the Net $X.X performance are: major Provision million expense $X.X $XX.X from the we of at $X.X major year was $X.X an an to by increase million from $X.X profit

an of payable Cash capital I am XXXX. are Reviewing liquidity balance of in there talk in $XXX,XXX. Inventory we $X,XXX XXXX significantly year zero and all million XXXX. last million $X.X our of major sheet XXXX-year now bank. XXXX I I million in or up we loan XXXX, has the in in working a biggest $X.X XXXX. compared in compared had XXXX to our from debt compared increase and payable million and to think in note. which to tax zero increased Notes $XXX,XXX $X.X cash in to believe resources. very of equity $X.X having to Stockholders’ compared XXXX $X.X some XXXX would XX.X%. Let’s million year balance to XXXX achievement compared end improved is happy $X.X in and about more on sheet, Net XXXX, $X.X $XXX,XXX end. $XXX,XXX the capital hand as to to million agree in compared $X.X in changes Income million about is million balance significant that reduction

for million review XXXX. -- by operating activities. in $X.X XXXX of So, funding income $X.X let’s the combined was to at to receivables to Cash to $XX,XXX XXXX. was reduction the of inventory and activities $XX,XXX activities $X.X of million million $X.X year with activities Cash improved million $X.X investing XXXX collection compared in in million operating $XXX,XXX of compared compared in accounts the company’s in XXXX. cash used end position Net substantially $X.X provided million

used continues these Financing the continued the company XXXX. XXXX, will invest repurchased satisfy used concludes activities related company year as cash XXXX. our flow during Management our financing the ended necessary launch was bank and of At eliminated party credit approximately Now million, cash expenditures. the entire Management provide of company XXst to sufficient XXX,XXX The support to truly. the $X.X in complies and $X.X that shares December X.X the debts as resources Stewart. cash company million in in party from This back you related product cash XXXX. the in of for that continued to and capital and shares support national from facility. financing turn needed our starting retired financial needed million summary believes flow Directors all for from for financial to call from also used new $XXX,XXX for provide activities. the will company company to XXXX. in million compared my its company covenant institutional borrowing debts additional activities operations with believes X, operations, I’ll exist Net pursuing

Stewart Wallach

record highlights important making Gerry. you, like note, to it's further profitable sheets, perspective XXXX review, under to contributed we’re and that emphasize specific be some Important offer to identify Thank where performance going into financial cash XXXX. additionally I’d investments. And to that we’re balance now and our Gerry

an basis in more less We our on to releases show ensure with reliant industry at annualized are investment scheduling. expanding product R&D

for revenues as primary with products one that me this Particularly we introductions the are what wide improve to the i.e. placement them up. company, where had holding product it the we in line our industry and to XXXX. to Let the they become one buying the community strengthen shows explain we two of relates will XXXX product to completed quarterly our year. This make throughout should as investments that objectives introducing as By in is will normalized pre-show queues opposed and evidenced largest hardware means. opportunities for profits is the our more as

XXX,XXX from our in in profitable million [indiscernible] Moreover, excess the were less and Duracell was debt Even as in significant strong. the with satisfy XXXX to relates approximately the Our cash in royalty XXXX, brand strategies licensing flows. to versus $XXX,XXX sell Duracell as brand of brand had the we as this Curiously, operating year approximately Google expectations. to royalties. in as XXXX exceeded in outstanding was the In particularly highly a productive experience all Duracell able paid of our through compared company its X.X brand we with the XXXX. Capstone [indiscernible] the not expense, expensed also it royalties

XXXX The operating was $X.X X.X to equates which by company including [ph] $XXX,XXX campaign in plans Our continue sell in programs to retail flows. XXX,XXX support to through investment the cash consumer governed shares XXXX repay XXXX. in versus repurchase repurchased in million million

directors to finished loans we zero commitment debt to in the satisfied Our million and met director $X.X XXXX remaining has XXXX. satisfying older with having

in of benefit utilized this enable The year fully and state repurchasing first This $X taxes further the were provision NOLs expanding in percentage with reduction workforce. was be impacted accordance the our investments consider million. to made should income. stock Federal tax taxes our board's As its plan. will is XXXX-XX from approximately our approved us for that to XXXX year

at focus and product targeted in assortments development categories. prime XXXX with objectives expanded R&D Our product and

business Revenues $X.X leverage, per minimal we years, maintained with a workforce. approximately the our employee were strong very the Over operating have building million.

points that business. expand capabilities In in Electronics Show. effectively also to Consumer keeping core already point our should that expand made in debt committed plans our important XXXX not generated trust It are tell out over I enable in operations, where forward, these progress substantial strategically and our Looking assigned maintaining our the we its management and pleased to this I I company participating the future. company's product the will these out low-cost will initiatives. with invest could R&D that, focal be discipline investments investment communicate to and while is growth company's stunted. cash our marketing operating the until our keeping beyond personnel and XXXX and the the with to that satisfies point have R&D, visions prior were otherwise we year to flows you for made LED am space to us

a January markets We categories will to that age. product in very introducing the We're digital this on new XXXX. of keen are line be consumer and relevant product opportunities in

and like our support affordable That to our market the exciting at other continued business to personally proven thank Just strategy. in but this I'd be that early company's I our time as like shareholders and you provided within marketplace prices, fit presentation. we long-term and products we new the will welcome our potential innovative shareholders relevant entered your to for history. LED concludes are entering to yet categories

should Q&A? to Alright. we think move I

Operator

you. Thank

be now a session. will [Operator conducting We question-and-answer Instructions].

Aimee Gaudet

over via email to sent do And first. We're move the phone. questions then going to

Operator

Go right ahead.

Aimee Gaudet

Okay.

in. first revenue significantly but that increased see the the profit in came a has can gone as of company that dollars, of gross has the down. percentage So, question We

you margin see the by a is mentioned gross rebates. continuing this you Do marketing funds, reduced trend? As as consumer

Stewart Wallach

XXXX, Let in X% me XXXX, revenue, revenue. invested one. million million million answer of this $X.X X% we've revenue. in $XX.X $X.X equates we revenue. That achieved which X.X% to $XX.X and represents about In and invested million of funds achieved In in marketing about

are So, down. up, the profit is cost fund message is, gross marketing went sales up and

awareness. brand important retail find launched. programs support in significant portfolio very it’s is in we when overall, proven placement effective that and product developing investments achieving And have product consumer particularly new a Now such

certainly so in we that but can see I controlled So, this a very, request continuing bank very for way investment. our

Aimee Gaudet

QX you and little the Maybe do a you launching Stewart in, line product website what can. company? a Can referenced question you expand that Second new category. you can for bit upon in the came

Stewart Wallach

occurring such, in is And in to quickly and As to an into referenced product as increasing we to development us as new are expand our like. to are closing continue our R&D allow development my LED the departments business. I this utilized. and grow without statements, rapidly prototyping core product At not point, human would impacting category efforts as effort our resource fully I

However, they a doing formal introducing have. appointment best product with that the the the QX they and key XXXX. QX, can launch optimistic I an the with followed January I new the in be remain fact will in scheduled Show having to public compliment in retailers, CES management of in the launch industry privately set by at we resources intent category

Aimee Gaudet

Okay, progress in Board any made additional up-listing? great. Number three, the has

Stewart Wallach

Okay, this considering discussion I is we that lesser discussed shared detail up-listing an QX but in with ongoing shareholders into this I and OTCQX. in were our

on lines. hold the we until moment a potentials that the put expanded had product could at we our gauge However, of

and specific at emphasize challenged a point to to Board does remains consider its year potential. OTCQX me new in and we will our practicable. product unfolds NASDAQ is plan us, offer in this initiative benefits there But While do the priority this sights its revisit not gauge set could for to and when as later place. Board I the this we a the want full has

Aimee Gaudet

Great. you. Thank

Next see upon strong as not that that would as company a us some question. really communications like. to and you efforts perform but We little Can year-over-year continues bit? are expand the your of appreciate

Stewart Wallach

trading going exposure I of So, with as will and IR we is operating stock. And exposure by in initiatives. is It campaigns strategy commensurate the formula company us be a we both mean an personally sound am importance the increasing I direction of lines expand. a PR I investment product as campaigns we to aligning it’s and address and shareholders consumers for the exposure an all, is just those should are the not this increase that with that It product a frustration our area important to our that taking. we if making What to the have to recognize this shareholders. me campaigns, simple our is is be of exposure for sure.

and As long group you transparency for of like our doesn’t people quite term disciplined open, deliver end our as of shareholders, as one we on we but we have the fast on are might know being at particularly a the business always everything day we promises, happen seasoned focused have but to honest and personal as product the competitive philosophy would as be to that information obligations can an respect advantage the in guest agreement telegraphing not direct sharing open vendor insights business possibly competitors into my we for also we that the honest are relative marketplace. and of

of a investments staff things Today, This salaries, several review an people. me. the bigger part to become target equation we strategy As have bigger have I the operating with can our on I telling our had we and the That’s in not lavish expenses. companies at company, objectives But expanding expense. get marketplace ours. yet marketing really That we of become PR offices, easier present areas for not IR those matter return. best make just weren’t prudent a a we advancing. Its is story, investments their putting increasing more substantially and a bigger targeted is having operating increased the basically out formula, expenses of our increasing the align bigger matter of exposure. and you see part make is in that is that to operations just to typically reality of a The XX which

careful, want a recognize expansion no uplifting. about lines, more at question fiscal to the way the end a potentially move those that. product growth I communications, we ultimately the along that CAPC sales So, fundamental is build that through we day needs will know of at discipline controls of there you but the it company’s and us to do to continue continued and

building However, at a the are products we of this IR. while expansion options and point the of focus our we our continuing are development, R&D, on to product new launching for our category revenues reviewing

ignored, it's appear everybody the it may needed. been Anyway, it it has you than way information not, it's probably that simply more being would would appreciate possibly it prioritized that while So, not is be.

Aimee Gaudet

Jerry, to question news and and pay them now into tax strategy? your a is How pay give geared This is we’re to some That perspective. The planning good does number. taxes taxes. will meaningful news profitable is definitely bad have that have towards the fit we

Gerry McClinton

will, good But that, our will looking tax element lot overtime. rate. this they’re that reduced is a and from Too very benefit to concrete months. a right know a answer with changes, pretty tax these planning trying mitigate experts the tax every of and other The are that impact corporation cash early but grow, at for to now, with tax And the recent we our change exposure. catch professionals the our of the we new available at we struggling tax right has important flows question up with not you answered certainly laws looking in tax rate news overall on the to have as dramatically it. opportunity continues Actually, in now our impact the are to we're planning. business particularly Hopefully our that its strategic it I've becomes that's greatly

Aimee Gaudet

shed you have than Can Last light revenue for on will other via do what believe increases? an into we the a you company question category new email. expansion some

Stewart Wallach

product X-year always looking-forward roadmap a question. by strategy the objective. That's initiated of governed good the top When it revenues in Increased was at we our XXXX, a list.

of plan areas To bit, company into business expand upon we our two the our there factors However, that making. this address. decision and of to a image strategic sustainability are

addressing and intelligent considering disciplined at I the which the that product two is is enough management concentration. timing. point second to customer and of points concentration this of the company what be is that weak know areas, is your these One would believe I

and very new as result product a new markets 'XX our channels, XXXX strategy. of will seen We as be relevant enter to a company

Aimee Gaudet

Great, thank lines Doug, I you. the can open think we up.

Operator

Okay.

the [indiscernible] of investor. your questions. who's a Anthony private comes question first from Our proceed with line Please

Unidentified Analyst

and Hi, I'm Congratulations distribution you when whatever actually what is? that Two earlier, B, and public two understand product what that Or privately just had product the the whatever, to discuss good be say good one that up your start one things, morning. Does on know general point follow what the to new could questions, the is, said choose. very mean when you product sold actually at two the you'll to will results. that will methods be you shown. product trying

Stewart Wallach

it's This assure been I see some demonstrating in at our Anthony question. for we limited probably our means. We is have to Okay, reply it's our plan, the I supply you not in fair that of a best product to product manufacturing, just it difficult the very what Those it this understand or time to decided ambitious And a a to Christmas. intended X meetings buying meetings this product the with share objectives I identifying we've product the to you let we've be aligned with point direction. our months the basis sales The intent difficult approach staff like place produce. is the on in private be But on probably being to when a QX. to this. chain. be that in the strategize exactly are QX would relative will of shelf the presenting launching were aligned to to public you product, getting place and moving way hand, discuss to X QX took we me But or with in what process. for the would taking X ago, not will be meetings hiding companies

a for Show in the it’s the in basis space that’s processes. industry but January. release we be is are digital on new a in formal discussion is We limited this be product Again, player whole to presenting and attempt product approval But and the a testing age. just on will us, have not QX determined now strategic And shelf QX. as a a The in Capstone to in directly. product is presentation CES this

Unidentified Analyst

you And final or XXXX, you. profitable is expectation that continue you your talk about to will XXXX? making investments increased when for be thank question, or personnel, R&D that Okay, impact profitability, will your in in intent

Stewart Wallach

am and question are chicken objectives do a our why One we and on and we I prior we our to that the generate those that investments we is team. think fiscally make our debt comfortable with but Tony. cash to campaign up as to et to profitable that to the egg, cash demonstrated no expect also make profitable coming investments. That management I the it’s allow will ability cetera. us in. sheet perceived That at the and off be of we paying be with to I There’s off demonstrated expansion year-over-year had until said, responsible expect we this held this is kinds being of point revenues enough to thing balance

need wouldn’t our start once to this So, in moderately we level we in revenues R&D sustain in that that while anticipation management model. that that all place business those success, increase to and will of out overheads track,

Operator

Instructions]. [Operator

Our Eastwood line Tony Kamin Please next Partner. of question with your from comes the proceed question. from

Tony Kamin

new I I terms product of missed that beginning the on maybe lessened apologize done in new and addressed …? see the there offering, is where have of so so it this. LED call, a that you any perception you to a by but your a forward was is it’s start -- little that’s But you whether with have have of as growth of the you job a some magnificent wondering Hi, going may point most I side important why hit side on driven

Stewart Wallach

It’s intuitive a and Tony good observation an inquiry.

the homes. being you The space bulbs product XX it LED business, now people replace of and that’s to to has what will in light And and replacement coming as but the marketplace excitement whereas lessened LED of used you this, of mind, too, the conversion eight Keep itself a driven a a LED because and are that has line business seven a as have converted was years a to outside has say every from year, that replacing been bulb portion year a half. because you business lessened. the and as bulb which their in a to of bulb moved in dedicated well, now me category business Let is of last mainstream. the are into amount years exposure

So, the is a exposure to space the that’s the innovative. be $XX comfortable million $XX category less, I to which Am category overall is the dedicated to business, challenges yes, us less, to I that more am.

it’s that I However, product just the business expensive focus to brought concentration bigger you like earlier company And allow and is I which customer mentioned category be a sale direction bring we compliment we going of than were that to home that not weren’t it's will beyond markets two of typical weak the that that category the stay product us out These It’s webcast. to of because at more early far into niche edge based. those. new far our drive honestly more the are revenue. our reaching than One things The much new and to software club the category new and forward critical us the product and currently critical replace our two what way. leading think displace the distribution and are or a core businesses channels that This business. I our for start-off the is on. of repeat the business, appeals in for that technology when product is address more The automation always to less, to more then be base. is. in me product addresses in in is warehouse company the and points concentration to you It The and just both mainstream. topline in

Tony Kamin

price, place And in it price your of much the for pressure growing some the distribution ability how Thank seeing the are point? or your to and that. it, drivers you is LED of is what maintaining that share, market you price market channels in terms place, or to Is answer. are then at take your market

Stewart Wallach

companies which to an both example. one of largest Of we’re product and I five in four those two vendors here Today, the one three of believe of other out two from well ago, partners years has et rotating has you vendors Okay, cetera. one. operations, retail those area, warehouse club I’ll anywhere give four the had which the were one vendors

what So have enough I call changed. survived a our we correction to as market is nicely there curiously would this quite hasn’t the and position

as become substantial bigger in our way. support we’ve contribution doing and participate product it increases as the products to to the numbers and the unique because we’re us a we’re company the isn’t it that expectation also with relates Now, our price revenue price commodities. bigger to to experiencing The and pressure and not other is today increases relates us lines are they’re pressure, pressure because coming specifically innovative, LED to our partners as which they a opens expect doors

by in see we seasons cetera. year the et can marketing consumer and expense did, this rebate You what made the that we

years of Because selling intention resource. but we we because company would price the expand possibly that if still my constantly to products are continually investing were new new goes and product to also three commodity-based development see R&D products, yes, tremendous would. So bringing erosion our would reintroducing that we on and a that say items those ago, line don't pressure same under Tony I be we’re product

Tony Kamin

I are program repurchase point the in? consider believe R&D the a I share consider the on But focus question point cash a would extremely products. final undervalued. company's new appreciate the think do sure given future that. I board I'll we if you a I starts trying know some at sort to And answer the of to Okay. at And really and comment. grow put ask

Stewart Wallach

point available board a approved; we again, clarification. today. of repurchase development. It's been built. the plan XXXX to your to Okay a things. December, the be even provided XXXX. the Tony the beyond did product in do believe the of a We would and cash approve two approved we us R&D stock would in it would I and more for of reinvestment reduction $XXX,XXX cash already do just to did board the area approved that I it in That the that be significant some expect stock flexibility expect result and to And as will. XXXX. tax buyback gives at One invest

just some you One free. will the that we're recovery to debt course And we cash that stock of other -- is of of now repurchase if budget plan. that drove

would a So to be to yes, going to about than impactful -- plan. it. absolutely spend generic there question more IR be is It's that certainly do considering what those on I no to moneys

Operator

comes question the line Management. proceed Five from next Cohen questions. Capital Roads of Tomar Our your with Please from

Tomar Cohen

My first I that with is opportunities growth XXXX has if to that that your language sign XX-K maybe I'm and your fewer international the than XX-K. more is curious had there And a opportunities noticed XXXX question so international about do just business. why?

Stewart Wallach

say me let this. Well,

a take XXXX look line up. our at product you'll If

our of how we fixture product That light. a with One I'm major called XXX. what the LED an you're that wired light hard for [deuce wired wired is was operates. hard launches sure outdoor neck] That's familiar

specification, for markets. in The always we its because Prior success and/or then we other sold have products. through markets. electric operated work rewire product Now, presented went battery other an the the and was that product product in from sell U.S. to in product that, foreign to fact based not it ready on to we've the states the markets won't market,

need outside to we we this because listed. have in decline also that be anything we retailers instance as are any the own somewhat, brands a triggers So, no in That’s slower into their But a while lot as that a this see go they as outside of the occurrence. of fact that particular And longer parameter don’t opposed flexible There process. to currently the to with who’re what’s see finding the alluded are process, don’t is and of the we market, that occurring. a a I those markets, move brands what’s year other to they battery-operated kind that continue with of markets. preferring products

Tomer Cohen

in am I e-commerce. are about what as you had And channel e-commerce possible club about being discount write a question e-commerce curious weakness club since And kind I weakness Okay, your I sales added company? most the capabilities language to for the today discount of then helpful. of noticed a perceived channel, channel. you’ve just in prompted your about -- that’s the

Stewart Wallach

be what some by let of category, market if I position would beautifully include to elected don’t expand not am at home “need that online to” to limited that to” you but i.e. category The product you we will in product channels is online. partners again that weakness just and provide clear Those be tell I new I that will, time going product going The and weakness, e-commerce “need opportunity issues will and steer but that there. meant diverse Amazon. the announcement cetera. fact new lends nicely that to improvement, the e-commerce, market Tomer the point essentially in to a upon very across new not us get of relative channels was retail allusive, furnishings, it’s had I in me fit I discounted and product to itself those mean yet products to et It’s our to there the make the to category home they because only in that cause without that to because e-commerce

the significant it So, growth company relates it’s our a potential. as implication for to

Tomer Cohen

to your you company into as a thoughtful as be and the to I launching very some new is -- it sure to because last is, to learn much distribute far the in around comment a place team, be the and just that’s you you doing operations question good have how just I segway excited guess about for going be I my launch you things thoughtful I’d which and and sounds sure making transformational for products new caution your it very what am Understand. go you’re about just make products sounds it. everything how to you would like encourage capabilities to the

Stewart Wallach

way our of understanding on that I base something think experience. I and are more foremost. both direct so customer, is our assure satisfaction, we have than launch demonstrated excellence our in operating There first no and business not can we client adjacent. that and will appreciate our Serving but govern I user customer rules do the do we

areas is us improvement why one-time appreciate not I and comment. fortify requirement this sensitive ongoing So, of keep the an production enhancement And product development is of product, exactly the we a that we to because that this your to are will a forefront and is R&D and category. the at new

Operator

That it I’d questions. to back to closing is all hand the have for management time we comments. like for

Stewart Wallach

to appreciate. best. do I as everybody, know we’re striving and Doug always Thanks our you you thank Well

order the should sheet, We performance email have questions drop the I’m or dialogue an were positive do which we’ve my this hesitate to best to and me, open have IR have year, some respond opportunity enquiries, especially access. identify had considering of of that and to contributed and short a to in additional I’ll things and changes we keep don’t balance any glad happy very all an to in to that record restricted you delivered please

are your Amy than between we So questions that and et more enquiries, extent receiving myself, open cetera. to

and very time you look months forward the talking thank much for ahead. to in to Thanks. your So, you

Operator

today’s and participation. your this you conclude Thank does Ladies for gentlemen teleconference.

You may time disconnect and at your lines wonderful a have day. this

Aimee Gaudet	Investor Relations
Stewart Wallach	President, Chief Executive Officer and Director
Gerry McClinton	Chief Financial Officer, Chief Operating Officer and Director
Tony Kamin	Eastwood Partner
Tomar Cohen	Five Roads Capital Management
[Abrupt Start] At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder	this conference is being recorded.
It is now my pleasure to introduce your host Aimee Gaudet	Corporate Secretary for Capstone Companies - Inc. Thank you - Ms. Gaudet - you may begin.

Capstone Companies (CAPC) 29 Mar 182017 Q4 Earnings call transcript