AEY - Earnings call transcript Q4 2020 | ADDvantage Technologies Group, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the ADDvantage Technologies Fiscal 2020 Fourth Quarter Financial Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now with turn Hayden would to conference I Maas Brett Investor Instructions] like the to over [Operator Relations. Please go ahead, sir.

Brett Maas

Thank Operator. you,

joined Hart, Joe Watson, today CEO; are Jarrod Officer. Chief President and Financial We and by

this and notes The subject to statements financial XX-K recent future is and guidance which actual considered the and uncertainties. regarding on is earlier Form in on These due begin other release of on ADDvantage the strategic report Private conference financial ADDvantage may the call events, subject Securities Act forward-looking presented these regarding XX-K operators, this original ADDvantage based currently and to Form of issued Technologies. reports available Technologies future from today to Litigation on only on XX-Q. we those everyone Financial Participants as to on are are and Commission. may Harbor Technologies on its things, Safe XXXX. statements, statements call company’s and involve included today’s with to be Reform most this contain of results differ system file like Form performance press Before call the included in Exchange relationships, as such remind results forward-looking equipment and I’d are should Securities as XX-Q subsidiaries with maintain change. limited contained provisions statements cautioned multiple among materially in in future information certain agreements number that ability Technologies, the most ADDvantage the These factors with that which the conjunction statements forward-looking recent statements predictions include, information varying anticipated made results call, such ADDvantage well Technologies’ as and of of the a consolidated manufacturers conference or risks

Such this update of ADDvantage points may such at necessarily will will this only provide of information company only factors guidance Technologies influencing the not information as guidance and the as it speaks any certain year. change, the Although, call. during date

as financial used press During also non-GAAP are you tables a measures. this call, such with we In Hart, certain please measures that Joe, considered net instead financial website to may these of yesterday, as Officer discussed, Technologies. and our the as These investors financial income, benefit non-GAAP and with like to over call of why these financial issued and certain addvantagetechnologies.com, the GAAP income, to are in ratios Joe the find included at which believe the our measures present should for now I’d GAAP to President measures. and the non-GAAP located ahead. financials, Chief net are be ADDvantage actually release of turn -- not closest relevant. go are and Executive will reconciliation of financial measures addition on measures we non-GAAP in

Joe Hart

today. and Brett, the joining you, everyone call on thank Thank to us you

last time was call having We’re February back probably, timeframe, started year, conversation morning about March. this and in this brief to I a the more before thinking the

lot to happened. wireless find up do to things, a stock have is that really how in nine last us. to we’ve We’ve and really have up deeply News something how Things months, world things concerning. powder weather know to back situation. forefront. businesses businesses a storm went the may coming XX%, of it cut of last. seen going that know gone the At was And have through to really a way this belly as pandemic and getting don’t the to don’t levels. looking in got We been to have that been long get hurt At of we the businesses were a seen saying, for business pandemic there’s We’ve on got ADDvantage, and our situation. tumultuous time, We stable around very build on at the ourselves we dry were of negative cash a XX% there is reserves. the based quite confusion our as look, lot the to opportunities up. protective We’ve out in seen lot we’ve a and the of investors. looked marketplace growth XG, growth good related same at some We’ve

or enhancements got XG and convert downtown and et are experimental. programs new cetera, still They’ve Carrier L.A. that a convert are XG construction radios. I’ll truly or of et don’t XG+, large, are those other installed area. ultra downtown are they’ve major millimeter There sites, City that XGe, yet. or XG. just Philly It some, All ones and program variations and New got call York those and No But, network both those of some Carriers XG gone by the existing capacity, place cell cetera, wideband, mean they’ve hasn’t et in large, entire all bore major advertising to actually full et has XG pilot where cetera, to to really XG. relatively ultra By wavelength cetera. their taken on them,

missed we the So, haven’t window.

the for We believe feel both plan. laggards to the Results as of we’ve sheet. clean where environments, word out happening the not XXXX. respect our balance a We place up go year we’ve well the XXXX, in ended sterling, done to that We’re lot in we’ve what’s COVID-XX into as we as in ramp good come that a XG this, industry.

we’re place here in is XG in We have when take to actually working our capital of advantage going kick improved position in good really we calendar and XXXX. cash to and situation, a feel

blessed have I or and the due say, we’ve day, sideline So, none our both affected fortunate the end at very been would on put the to personally of employees COVID-XX. that of been

the families intact. All of are

the considering world. end the in out all come at the decent on really day, the going that’s So we’ve in a trouble of place

by business remarks I’m XXXX. we thanks sustainable for encouraged we where formal position and a was provide successfully my for and shutdowns. Group to critical continue environment us communication year as allowed Homeland bearing to challenging pandemic-related were began. working supporting building service we during designation We essential identified get an that Technologies year the during services. me. and I’ll better exited that, infrastructure This as with when than with So, ADDvantage global Security success the navigated the

continues The business. have have and cost no We events a on as helped business year in we things to and discipline more Wireless both summer will during our or weather fiscal outdoor in our Wireless Telco on The had work our than management, significant resilient been as will challenges And and this offices XXXX. view cash shutdown like. remote our Telco you us in challenges temporary. shift businesses normal clarity special of look closure impacted But pandemic these to when we ultimately normal the return Midwest. and what impact

strengthening this we for imperatives three accomplish balance in our business environment, growth. navigated to sustainable strategic wanted we As sheet

increasing First, million, holdings maintaining we over increase our at while working wanted $XX $X this overall over million. capital to our cash cash achieve We to by position.

COVID model this Second, more made $XX approximately earlier took year. and we business, more post-COVID Telco direct plus Telco action reshape to In some drive and business inventory This wanted businesses expanded our intangibles environment. million a leaner to and goodwill and both and use and Wireless competitive we nimble business this a and expenses. write-down our a in reducing business overhead by for our nimble environment growth, Telco

For sales coming invested by opportunities. supporting our business growth, in build we Wireless in the in model and increasing revenue back adding by XG our coverage office resources and increased

efficiencies a investment facility our Telco environment, new Lauderdale, growth, our expansion. and Fort while in business for for both we our completed improves allowing For our work Triton employee for which

bring Third, key executive to our functional stock knowhow within experience and year In excel to people our awards, team to within team retain we are and talent to the and growth, leadership our through during the times. rewarded Overall, executives company these new business financial continue operation. added continue drive We our we to a working and long-term scale goals while members great lean challenging with to wanted growth. XXXX, which tied people these and returns. attract of the fiscal support restricted shareholder

by company improved and As lower a imperatives, these XG points, that to profitability even the margins as encouraged business our we of X,XXX our by more operational with result the and revenue. I’m gross model streamlining our successfully we growth transform improving accelerates. efficiency positioning basis for transformation strategic continue expenses, than

In addition, our expenses, of we quarterly operating in from loss approximately $X.X eliminated significant a million resulting narrowing operations. in

We signs transformation that are in in finally XG XXXX. begin seeing clear earnest will the

impending handset, capture XG to that currently you meaningful the new sure XG work this important Apple indication well-positioned a tower providing I We areas we clearest of in the related saw the many yet the of capable geographic am of project the share opportunity. released serve. recently are to

cutbacks. several we fiscal will All head consumer of to business, return after year the optimism we project advertising to new just the XG Industry fiscal demand. networks normal gives the the quarterly begin of accelerate about signaling in to upgrade spending are as positive revenue Carriers anticipate that pandemic to the we delivered XXXX in a the double-digit on due that services, analysts is XG, business our first now XXXX strongest actual to the end of the into with growth Telco the This long-term and These We seven five Overall, in now and QX, cycle as XG tailwinds. year. years spend principally XX quarter of of reaching enter fiscal in major income cycles and our XXXX. anticipate momentum years for years year. net require last to every started typically by by XG Carrier us our each basis Turning trend CapEx

grow. we organization and First, as efficient profitability for we have lean improved positioned a

Telco the with Second, Wireless the middle relationships we are clients. strategically leading strong country, throughout the Carriers of with and positioned

already see our another Fourth, at significantly we activity cycle and multiyear to growth are our strategy. beginning region, Third, we secular have in we indicator. a up improved our starting of Southwest to are positive the liquidity picking spending wireless execute

place Jarrod go financial Jarrod, our of have to Watson for I’ll we please in now right With Chief to review Officer, a help over Financial call Finally, that, the ahead. more team us scale turn the efficiently. our results. detailed

Jarrod Watson

Wireless $X or rescheduled, World to temporary like between deployment At county months. Most spectators fairs, and from and Joe. quarter COVID-XX felt XXXX the for Sales Traditionally, the million $XX.X from from impact the and revenue Series other Group business Democratic construction Convention, the in gatherings in National $XX.X as such during public the $X.X cell of our spending the you, year. either were decreased summer Carriers. million large the U.S. $X sites canceled million XXXX. events. prior infrastructure fourth Group which the of as segment, and our similar of its Wireless to shows, of the delays decrease in XG major Thank on earns million came this million from air

experienced Telco as large in closed our also office during million, at Triton IP equipment quarter the were for also equipment as decline offices a a sales Triton of We and sales and in dropped. of enterprise $X.X COVID-XX result the pandemic. sells segment most telephone networks,

to profit million by prior $X.X margins profit gross margins by even offset for a with and to However, X,XXX as million, points year segment The $X.X Telco from gross Wireless a result Wireless improved year. of the to basis as $X.X profit quarter margin was basis decreasing improved the by sales the profit segment, a $X.X same points. partially with Gross revenue. X,XXX profit quarter $X.X primarily Telco last million compared increased increase for due improving XX%, $X.X decrease, million of million million up margin margin lower fourth improved the XX%

Wireless loss operating year. the This of or in reductions for $X.X $X.X to share, a million of improvement same loss Wireless the quarter $X.X the was for diluted $X.X share increase administrative at quarter compared Group. for loss quarter $X.XX in same significantly X% decreased results, compared for a decreased delays result compared to $X.X and the in ended in global the by million compared with summer investment $XX COVID-XX. the the $X.X of last impacted during $X.X compared the million, Selling, an for million with driven an same to million XX, decrease the segment by $X.XX of for $XX.X million million our year. quarter expenses year, build-outs. year. out year $X.X for the The $X.X Taking for Net EBITDA last look prior million general the with year. restrictions for cost due diluted the increased in with was of last expenses million Joe which Sales overall investment quarter sales decreased $XX.X to with Wireless EBITDA XXXX, $X million year. our due safety $X.X the compared segment. a $X.X to for loss As million, $XX.X quarter or sales $X.X quarter the per a was for the was months million, XG to million loss XX net Wireless last with of million mentioned, to an million adjusted last year, same narrowed million, principally crowd Adjusted September sales full a network per building loss pandemic quarter team was and million

Telco inventory were The the As the and has year, or concluded to compared of and in our profit segment, and employees in resulted large for and traditionally decreased Sales primarily air a by XXXX. fairs, Series customers gross The related the equipment Democratic $X.X National million decreased fiscal $XX.X profit last which sent complex profit for sites cancelled equipment were obsolescence in $XX.X increase year. deployment reserve QX, IP million work decreased fall million million of for gross I temporary in quarter to space and segment the festivals, office compared new with partially gross $X as $XX.X The $X.X million significant increase previously increase prior Annual of which county of cell of during primarily in offset XX% result year, the as an an Fulton million, large $XX.X the for Telco expenses quarters million three build-out upgrades for is in decrease the Convention Indy year. to office as this second for versus to our a quarters $X.X of others, home Operating shows, Group. office construction expense to communications XXXX. XXX, $X.X Fulton million from last quarter four $X.X $X.X like or Wireless events mentioned, Wireless attributable Milwaukee, space increased year revenues the World from XXXX, for for rescheduled in the as earned with full acquisition year. summer and compared in The having million of million, million to sales Telcom delayed XXXX with

general Impairment quarter. of for a Wireless $X.XX loss again personnel $X.X compared as operating valuations, recorded segment. a Additionally, The million the $X.XX for and the continued million the exceed loss moving in per Fulton goodwill attributable company for XXXX XXXX, and economy the million to $X.X $X.X the share, a to experienced first fiscal had amounts share the expenses is Telco personnel costs. Telco in to at the with compared or facility incurred intangible COVID-XX per costs the costs Net in second for related Telco versus year. carrying performing in the expense last this goodwill $XX.X pandemic a year. million company increase, result impairment loss company caused quarter is to prior asset administrative year, million a having in losses four of by Triton changes in in the in quarters to Of segment. one-time our fair and the a increase administrative of full was a $XX quarter million and after facility year This offset including increased their determined the in additional on into in books or XXXX the XXXX. concluded fiscal new million values. acquisition diluted $X.X appropriate and million intangible charge the of Selling, partially with net quarters segment million second of for $X.X Therefore, diluted $X.X was assets intangibles in $X.X decrease due of which segment the Telco of three million the that the general $XX.X

$X.X related all were we compared tax in It However, the the that year ended the intangible $X.X which obsolescence almost XXXX, for mentioned and charge inventory for no $X.X the included assets. recognized segment. million tax it of longer Telco year, be to impairment a that $X.X in prior the benefit also no The noted in loss company previously million to to for should included year. prior of write-off use a year, facility net adjustments of million the compared million million $X.X

the with Additionally, million the period prior operations. for year a $X.X included million $X.X approximately from Adjusted a the in million, $X XXXX. discontinued of EBITDA compared for losses was of of loss same year loss

Moving on to balance the sheet.

September XX, of an $X.X Joe as million As equivalents or cash. million increase XXXX compared as were cash million XXXX, mentioned, $X.X of September XX, and $X.X with of of cash

of from credit, XX, note from million we for loan from that have of we of to and of correlates Outstanding payable September no XX, of maturity compared credit applied $X.X payable one a December million $X.X year XX, primary had of for primary of and company notes paid $X.X XX, inventories comprised our to our we our $X.X to September payable year-end, of XX, XXXX. of line million for fiscal payments have more we comprised million line year-end, received forgiveness. XXXX, was million renewed off banker, to debt PPP promissory obligations, of Subsequent revolving and $X.X debt have $X banker. which $X.X million a September the were note revolving million XXXX, $X.X down to of million which million, at XXXX, $X.X of As September a $X.X million and notes At XXXX. as financing lease at

Operator business normalized of concludes financial believe the any We the segment returned. now conditions to overview business sufficiently over the our continue will questions. facilitate call backstops more turn remarks. capitalized until I conditions with we near-term to appropriate are to to support This

Operator

question Our [Operator from George Gaspar a is shareholder. first Instructions] [ph], go ahead. Please Thank you.

Unidentified Analyst

Yes, sir. Good everyone. morning,

Joe Hart

Good morning, George.

Unidentified Analyst

hear you Can me?

Joe Hart

Yeah. We hear Good you. can morning.

Unidentified Analyst

Okay.

your made Can product on is basis relative can you experience you that services and going First changes at in you line that facility? positive describe to the new the more the in Teleco question repair expansion in a a distribution overall expansion forward?

Jarrod Watson

George. It line? like or Hi, the it? question Joe would take you Can like disconnected. looks you to you are that got Reggie, take may me have on

Reggie Jaramillo

I Absolutely. take can it. Yeah. Yeah.

So, George. good morning,

Unidentified Analyst

morning. Good

Reggie Jaramillo

a design were our we able to at facility, estate and Fort relating Lauderdale, be the facility refurbish to us Triton we a we with allow locate equipment So the a could refurbish It space process. to expansion would real to sell our where fortunate market. workflow in

our We at repair are then expanding company to Telco in on working better there market. product And our we’re well. capabilities well there other line continuously upgrading customers as name, our serve as the our

that George additional hopefully, let So, any questions there is answers question. your me know.

Unidentified Analyst

the nation to -- scope scoping Telco base I capacity that are nationally of one, you do from the how your expand that? base, view mean, Just

Reggie Jaramillo

No.

that we presence and distributions to a to I Carriers, web we have think we country little are bit we and indicated grow have XX-K. as in-person do other across FedEx, our that deliver we position the with Carriers large our multiple with the as and the The have, well. business that internationally UPS, presence in of

think growth to positioned across George. the I country, the we’re So on handle

Unidentified Analyst

Okay.

cost acquire your ago per product? it’s in to some How how And going have there unit us basis? are a or you a Okay. you Telco? versus, All line been thought say, structure structure can any right. is about year cost the now on How -- -- acquiring product your give

Reggie Jaramillo

question, Very Yeah. George. good

favorable year So, COVID were with acquire more at because prices a that to opportunities, have are environment, the ago. product slow some we than businesses

margin. we for our competitive be so looking and market that avenues to equipment, the acquire different searching continuously more can increase and We’re

this the to So been looking versus COVID. for avenues good opportunity there’s we’re we’re and equipment. last it’s year despite acquire headwinds on pretty great always facing And different

Unidentified Analyst

you. Thank Okay.

Reggie Jaramillo

Yeah.

bet. You

Unidentified Analyst

The quick question…

Joe Hart

with And George…

Unidentified Analyst

Yes.

Joe Hart

working the I that been I and am that level Yeah. Joe. a sales, historically… sorry, growing would support with, with we very to sure to it’s hard balance make Reggie, we’re has can’t not that inventory

Unidentified Analyst

Yeah.

Joe Hart

too the that a -- a aged with been in year because good purchased with our year always pretty disrepair has all good sale, has of business, seen of offset years, kind bulk that down, you then either over and some as inventory fashion. some it’ll be or good have challenge. and … And right a inventory that equipment we’ll have was

has So, good got Reggie delicate manageable products between buying keeping at act prices at balancing sort a and inventory a very that of yet very level.

really nice a since doing over. been job has has he he taken So,

Unidentified Analyst

Wonderful. Great. Wonderful.

and but you when now the How obviously, could from, -- of to crews and you opportunities. give how forward on forward, going view you’re XG very you’re it’s I your crew I questioning compared and count to expansion prepared But for basically, going and need and year sure business Okay. us this down? accomplish going Can together XG commentary And period XXXX? now? are that you slowdown know you forward your crews to talk I’m and impact you the you the how The explained year probabilities opportunistic comments it’s the better that also is be the early about suggesting also company. into a say, -- breakout in the can probably extend calendar your geographical through and considerable keep more here, COVID some ago a And if activities effort. going tough your

Joe Hart

Sure.

and cetera. or been on with millimeter of out they and The build a all spectrum tends then pretty kind low-band, now big AT&T sort the years level. auction average which going had right on upgrade out at Verizon. big year-after-year steady years for a has FCC there has pilot -- CapEx lower little megahertz going and wavelength, of networks on at technologies They’ve annual it couple on ongoing of there’s historically a Carriers. look spend out to starts a steady for C-band, the regular all to things Verizon -- the programs mid-band, got eddy, upfront, new to XXX a high-band, But et puts here. we their fashion five a Carriers, a more a be four if expand So their lot they new spend basis. bulky, little of

$X at So -- billion, bidding into the billion that on $X spectrum. think is about moment I the up that

So it’s active. very

start is network new from The Fujitsu CPI Dish. must of building and ordered Taiwan. out other its radios thing Dish and they’ve

expect We will middle XXXX. start about Dish of construction the

probably build. only three population. U.S. to July we’ll timeframe, half years about cover got And So that starting see the about June, they’ve to Dish of

be their as So under heard the rapid From we’re quarters, perspective, they a to fairly couple dried back start me construction. buildup the busy, going the that’s in prior the our Southwest. very the here business you’ve up on very Southwest. in our crews almost in active, XX Well, during summer say little where we working

So is our rebuilding we’re building encouraged in -- itself that region. are business really Southwest the

We are the company. essentially an up country -- middle

Great So way up Southwest Canadian to the States Lakes the plains area, Illinois, the cetera. of et well as Iowa, border, the Minnesota, from Texas as Nebraska, Wisconsin, all

that’s it. and the to chasing plan a up So is corners and butter of good stay without middle and of country to country where we the ability focused, our and business supervise the bread want the not be all

So hopefully, your question. answered I’ve

snow caution I that, any you think the we that Northeast tremendous by news, can and we’re and it’s the building, watch getting happen but entering winter. and know, always Midwest, ice hit if is in at blizzards time I that as throw the

say, feel wary cast happening. -- promising have It So, know, I a of XG, guy happened good I and eye I hasn’t it about is just keeps some but overall. XXXX got investors finally this yet. kind

Unidentified Analyst

Right.

Joe Hart

Right.

we’re So George. there, almost

Unidentified Analyst

it terms from can that’s type if towers? the away tower of the XG much tower this accomplish on that say, from going if accomplishing that the versus maybe but the away you stream on much Wireless? to Right. necessary the And on the on If itself, percentages directly identify install divide you business, -- you of relative And comment to is tower to it were from could -- in can you to how let’s away that towers, work, towers? for how effective and is on install, revenue done to, the towers necessary work of towers comment say, equipment up not the were you

Joe Hart

the XXXX to But this CapEx lot to all that’s years a Well, $XX X be I on the billion XG spend year. or million would XXX CapEx $XX of today. -- next years subscriptions by CapEx, say identify. is that, predicted mobile million five XXX about mobile to four about for the that is predicted be expect about to billion subscript will compared They -- the a

needed spend, plus cell optics half probably to across in of actually country. spent wireless its on from to on get Half technology the fiber is that spend the probably XX% the sites that So on plus wireless network XX% about across of another is on public sites. CapEx state, probably the year equipment is and across of within that $XX on billion signals itself, and services town, to upgrade a technology switch existing

cell existing about They XXX,XXX out to there’s XG. So sites have there. to all be upgraded

to small about remaining to upgrading on So, then XG on adding will be cell the be opportunity on be new cell the is existing XX% probably, XX% XG, could pretty sites, XX% immense. sites. I would for say will on services and

Unidentified Analyst

Okay.

just XXth your the of quarters. nearly for to that looks is numbers, Is finally, that December, through comments quarter quarter considerable first Okay. describe of ask like you you’re it this some this has of it And once -- make here a maybe get along that’s now that pretty is -- there like room these on being I’d you final for how you couple us any when gone? there’s in could expansion,

Joe Hart

tricky of but… comment business, That’s because we forward a a usually on bit don’t one,

Unidentified Analyst

Yeah.

Okay.

Joe Hart

up. Telco activity -- a good is I as activity a think, good got operation, got reduce Wireless team. picking the said, I But The

producing not yet. It’s So widely is week hope There or the budgeted vaccine. COVID two-week at -- sort Telco still employees. of have, available great momentarily and situation. out budget expectations situations with level. the is say, of around I’ll The -- quarantine not we’re the We

are the and network the public people working out Our every in day. with

in shutdown somebody time to tested. get a for a a as hit they’re bit positive crew do crews they where -- few moments So, we or exposed somebody who’s

not holiday. heading into it’s So, and we’re perfect a

never George. year, is this our of quarter the So best

Unidentified Analyst

Yeah.

Joe Hart

I be think to it’s year. So strong -- a but going

Unidentified Analyst

at queue point else the ask All back and Okay. in right. this question. a I’ll let someone go

Joe Hart

Okay.

Unidentified Analyst

couple I I’ll more get wait. a but

Joe Hart

[ph], ahead. All Operator is Our next go Bob question Please from right. a Jensen Instructions] [Operator shareholder. Thanks.

Unidentified Analyst

Yeah.

You guys your was basically comment did acquisition $XX or get a that to doable you Would organic how is there? far where grow presentation million. this to you still XXX million Can revenues growth? from as summer, goal last be and you will through where it stand as on

Joe Hart

some business. and which operations, it’s grow Well, organic ability Dallas existing we’re still it’s are that Chicago some -- on Bob, the we mean, of centric basically to growth. I -- bullish grow percentage to our

Unidentified Analyst

Okay.

Joe Hart

the been seen XG million, $XX $XXX been -- million, other companies through grow to million six-year, this year cycles $XX and before the over from seven-year million a the period. It’s with I’ve $XXX we’ve in able to business where XG a

it be So to that of five it’s the quite mentioned, of XX-year the CapEx bulk organically possible slower. XG as years the I cycle in cycle. spent the but will also it’s And do in first

So be that an top to fairly we aggressive M&A organic believe need the growth, we on of about program.

reputation positioning geographic to growing we’re have the really business we’re to allows to and have the I and $XXX good we program potential customers begin doable have a cultural with both we look that allow in career. us a feel as and to to done on well good and my personally year expand have that our a to as So and both target number footprint, ourselves investors while got raise is quite of good something times capital -- at go the us technical year pretty to working those. $XX targets been got of capability companies the million just a a It dramatically. we million I’ve actually it’s fit,

about feeling grow to the I’m So our bullish confident business. very ability and

Unidentified Analyst

acquisitions any have currently you Do insight?

Joe Hart

there’s towards, working lot our targets to we out always There we’re on a like there the mean, a and I few are Sure. make in some radar. regard. so progress that way trying that

Unidentified Analyst

Okay. With shelf and any for guys with you through sales acquisitions be and registration -- those financed offering, believe. did I a a stock

Joe Hart

a last, a big It under $X.X of The We’ve number the daily worth since about months. amount. sold bit capped Not been Right. document. million June. offering There just registration for there shelf shares over has million limits. was a in of out Right. some are well, the little $XX at

the never of So going through that shares swath big see a you’re S-X. comes to

options, whether raise looking of options be might And it’s private or a through in. how so investors whether through equity. it’s the raise large capital an we’re equity whether money, attracting about data, to There’s it at it money might to be lot our S-X, come

would say, So of I fact exploratory the we’re sort that phase just now. in of right finding

Unidentified Analyst

Yeah.

you when money raise the is won’t hopefully, too low. Well, stock price Anyway. Okay.

Okay. Thank you.

Joe Hart

all it looking You’re the are welcome. right? We time,

You’re welcome.

Operator

from is a up George a Please go question next ahead. Gaspar, shareholder. Our follow

Unidentified Analyst

quarters, on work describe work when specific Joe, for or Okay. Exactly, ago, little getting away towers the -- a distance from And from far follow the you? from individual let’s Thank a complete, single in opportunity quarters a can what that? here this complete you the to area we talking -- your you you. bit three tower? a maybe tower how highways tower? say, the back four streets up away terms Can specific couple opportunity go think of or the is, your about from whatever. I a away tower is project in were a

Joe Hart

XG both you expansion well optic as have neighborhoods, And of and but upgrading up as tower top, only bring you additional to your not to other the fiber at all like or the base something around a for you’ve the technology, the cities. the from and to driven often work cable and have that tower typically, Well, tower. that’s

street. towers So city in the close to are main the

going a take splice out company wideband who phone be to to will cable So or street will network. the into it the to by XXX-feet, that maybe to to the it’s and XX-feet get you’re Carrier fiber street it the XXX-feet and connected

those a the be could X.XX road. roads main like If something X.X areas, the to mile, from that access you’re site mile, rural in more out

So -- of right? national it’s fairly range and controlled something or like it’s forest you’re a the not or environment fairly like mountain the middle out in that, building it’s

Unidentified Analyst

see. I

commentary most find much companies very Okay. potential this about associated upside will on are made margin. what investment out what The forward And with accomplish interesting pretty unfolds All discussion be into are it run with? side acquisitions pretty install the commentaries of and from equipment how the side the of coming of revenue like the there’s on to from there, this picture. if to it a comment install Any been concentrated that’s a And a at equipment to types should Wall the going give where it has of come -- It you that doing able terms your by, on daily on going stream that? opportunity would you there you’ve XG opportunity hopefully, a in and the opportunity basis of to annual is right. see -- shows that to so the and basis about it’s look Street. commentaries dramatic significant the here opportunity interesting amount be point to decent and looks for they’re potential an you some side in a hearing

Joe Hart

think, to a name agree. In this other in companies few DICOM, $XXX that the I we we’re stay sort eventually way many. Masstech, There dollar sell we are the the companies, top million space off. But few very are or them their owner traded I companies. three. there any work barely small- multi-billion in of of Quanta, medium-sized words, in place. to Well, $XX the mean, to don’t publicly up they’re business. find are Most that companies in there are in so you feel and ladder million, a that they of sort good private one But

us who of to scaled a have perspective, group core the done experienced overhead support has have that’s core critical, back got have services From We’ve and that’s critical provided this credentials. and done this by this both folks and of we right? before the spine an being business before have kind team, up We a office that $XX got as all our know the million, functional to controls, a to able different good we’re and feel those project grow construction. well and You from how the before. rapidly in we million subcontracts, got And it people right? leaders back who as contracts, business to $XXX we’ve office, And services, done that do have it place.

pick As do this going long disciplined, good curve. we’re well remain targets we in as to and growth

Unidentified Analyst

Right.

be from New comment, And being and attractive about the out the I I in the they’re Mexico of California Coast moving standpoint there are area, of through potentially dynamic what being place don’t some substance generally pretty Southwest? And better Texas to looks Southwest pretty San into taken more of West there’s companies transfers in would sizable South too. put have that is and Okay. would position also which going to very -- a But market, large observation, moving you your in seemingly California are take from taking advantage Arizona. know Francisco Texas a to closing and place this and

Joe Hart

good agree We we’re feel it. We place. to a in

Unidentified Analyst

Okay.

Good right. to very luck Thanks All guys. much. Okay. you

Joe Hart

George. Thanks,

Jarrod Watson

Thanks, George.

Operator

There turn time. are over I to this for registered questions back conference management remarks. no closing any at further the like to would

Joe Hart

that us be percentage feel XXXX. better getting and the in leapfrog of just get are. able really in thank in I the today. to Well, to feel a in positions through want we moves, We to lot been place what’s we’ve well that we’ve space, want again made ourselves trimming were the to businesses call COVID-XX, fab, where made There on given results prudent everybody the haven’t for to to where people around overplay we fortunate with all as from right best are this that, want I wish as but But we joining being technology where world had they of and to and taken don’t XXXX. pandemic than been it we that the the high both with

you for investment thank and ADDvantage continued Technologies. your in interest So

Operator

This concludes today’s conference call.

for day. your You disconnect participating a lines. pleasant Thank you and may have

ADDvantage Technologies (AEYGQ) 17 Dec 202020 Q4 Earnings call transcript