Earnings Labs

Flexible Solutions International, Inc. (FSI)

Q2 2013 Earnings Call· Thu, Aug 15, 2013

$6.53

+0.31%

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Transcript

Operator

Operator

Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Second Quarter 2013 Financials Conference Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions) This conference is being recorded today, August 15, 2013. I would now like to turn the conference over to Mr. O’Brien. Please go ahead, sir. Daniel O’Brien: Thank you. Good morning. This is Dan O’Brien, CEO of Flexible Solutions. Safe Harbor provision, the Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for forward-looking statements. Certain of the statements contained herein which are not historical facts are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time-to-time in the Company’s reports filed with the Securities and Exchange Commission. Welcome to the FSI conference call for the second quarter of 2013. Prior to commenting specifically on the financials, I’d like to speak about where we are in our major projects and what we expect for the next quarters. . : Our sugar to aspartic acid plant in Alberta is now in operation. Our corporate policy is not to provide volume information or details of production. Our revenue is ongoing. We’re depreciating the factory and the Taber production team is focused on continuous increases in quantity, efficiency and quality. Aspartic acid from the Taber plant is shipped to our Peru, Illinois plant, where it is converted to polyaspartic acid for onward sale through our customers. TPA is used in agriculture to increase crop yield, the method of action is through limiting crystal embryo growth between fertilizer ions in…

Operator

Operator

Thank you, sir. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Bill Gregozeski with Mont Blanc Capital. Please go ahead sir. William R. Gregozeski – Mont Blanc Capital Management AG: Hey, Dan; could you talk a little about the new distributor in Australia or expand on that a little bit? Daniel O’Brien: Well, sorry Bill, it’s a new distributor in Western Europe. William R. Gregozeski – Mont Blanc Capital Management AG: Sorry. Daniel O’Brien: And as a result of previous distributor being purchased by the current one and the new group is much larger, and it is able to cover more countries better. It’s not my right to give out their name but we are quite satisfied with who they are? William R. Gregozeski – Mont Blanc Capital Management AG: Okay, all right. And then to spend I know you don’t like talking much about Taber, but it’s been about two years since you’ve started commercial production there. Is there anything you can provide us to, I mean what kind of timeline we’re looking at for this being to get ramped up? I mean is it something that is just a matter of it will take a year or I mean are we looking at years of slow incremental increases? Daniel B. O’Brien: Well, that was asked very, very nicely. But still there wasn’t in the speech about Taber and I’m just not going to go further into it. Thank you.

Operator

Operator

(Operator Instructions) And our next question comes from Steve Neri with Gilford Securities. Please go ahead. Steve Neri – Gilford Securities: Hi, good morning. Dan, I was curious in terms of what your plans are to essentially get more attention to the stock? We’ve seen very light trading volume on this for quite some time and it seems like quarter-after-quarter, we see that and I haven’t really seen any comments in terms of what type of promotional marketing effort that we will see to have more investment banking firms take a look at this, any types of road shows? I know I haven’t seen anything in terms of IPOs, which is fine, which is great. But I was just curious in terms of what we’re going to doing to get more attention on this stock? Daniel O’Brien: Well, Steve it’s an interesting question. We maintain an internal Investor Relations team Mr. Bloom and myself. We do travel expensively each year. We do not mount promotional tours for the simple reason that temporary promotion without the numbers of profits and growth back them up or usually not good for anybody involved. We are quite happy with the recent numbers and the better our numbers are, they more often we go to healthy – about them for a round answer. Steve Neri – Gilford Securities: That’s pretty good. I appreciate the numbers as well and I think you guys are doing a pretty good job quarter-over-quarter growing. I just would like to see some prospects of that in the future, so that I can bring more customers into this myself. Daniel O’Brien: I appreciate it. Perhaps you and I, and Jason could take this one to private line at sometime to put stock. Steve Neri – Gilford Securities: It sounds good. I’ll reach out to them. Daniel O’Brien: Thank you.

Operator

Operator

And our next question is from [CJ Philip], Private Investor. Please go ahead.

Unidentified Analyst

Analyst

At least you could try to make last confusion with these – Canadian so called water companies. If you could do a little bit of that, it will really, really help? Daniel O’Brien: Thanks for the suggestion, little bit difficult of course because everybody puts their best foot forward and sometime the foot has got a lot of makeup on it. We don’t do that of course.

Unidentified Analyst

Analyst

I understand. Daniel O’Brien: Yeah, I guess the other point is, we’re not Canadian.

Unidentified Analyst

Analyst

Well, I know, which you have a Canadian address? Daniel O’Brien: Yeah. All right, maybe you could – if you’ve got a chance…

Unidentified Analyst

Analyst

I’m doing everything I can. I don’t know. Daniel O’Brien: Okay. Jason and I will have a quick look and see what we can find as people supposedly competing with us and we’ll see if we can differentiate a little bit.

Unidentified Analyst

Analyst

Well, that competition only in the stance that these guys, where it was swindle. They were popping these water companies that were called water companies and you guys appear to be sort of a water company and they were doing it without any basis for the stock whatsoever. And I know there was some confusion beginning about two and half years ago. Daniel O’Brien: Well, I’m really sorry about that. I actually wasn’t even aware of it, but we will do what we can do to keep coming forward as the Company with large – for a small company and grow that actually result in profits and products that you can buy from us and rub between your fitness.

Unidentified Analyst

Analyst

Thank you, sir. Daniel O’Brien: I appreciate it.

Operator

Operator

Our next question is from (inaudible). Please go ahead.

Unidentified Analyst

Analyst

Good morning, Dan. I wondered if you could add a little color to the sales of the Watersaver line, and at the trial in Nevada, I read about that very successful our most of the customers, the current customer base, private individuals that are treating private reservoirs or is it kind of mix between private individuals and entities that are protecting a municipal water supply, how is that now and how is it looking going forward? Daniel B. O’Brien: Well that’s a quite few questions how about that for just expand a little bit on Watersaver for the only customer that I’m able to mention by name is Lake Sahara where we did the trial, they are now happy customers with automated solar power spreading mechanisms, sales this year have been all to private entities enquiries have been mixed about 50/50 between private and public or quasi public companies. Private of course as you know private people can make decisions without committees and long-term studies, but they are smaller dollar values in most cases. The public intuitions that we are going after control very large quantities of water, take very long times to make their decisions but on the flip side they rarely fail to pay their bills and they are very sticky because once they have decided to do something they tend to continue.

Unidentified Analyst

Analyst

Right I’m a long-term shareholder and have recommended this to the clients and we appreciate your continued attention that TPA has been nice not the reason we initially bought into the company we are enjoying the nano-cam divisions profit I appreciate your time. Thank you. Daniel O’Brien: Thank you.

Operator

Operator

(Operator Instruction) And there are no further questions, please continue with any closing remarks. Daniel O’Brien: Thank you all for joining me this morning. I look forward to talking again in three months and to doing as much I can for you the shareholders to improve the quality and price of our company. Thank you very much and good bye.