Crown ElectroKinetics (CRKN) 14 Aug 242024 Q2 Earnings call transcript

Good afternoon, everyone, and welcome to the Crown Electrokinetics Second Quarter 2024 Conference Call. [Operator Instructions] This conference call is being recorded. A replay of today's call will be available on the Investor Relations section of the Crown's website. I will 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.

operator. you, Thank welcome and Second XXXX Quarter Good to Call. afternoon, Crown's and on With Joel Doug Officer; of the Croxall; Film today company's Krutz, Davis, Electrokinetic the Crown's Financial Chairman; are and call us division. President Officer Chief Chief Sheldon Executive

of begin, company, Factors section Section remind identify forth XXXX. you and I'd as Securities of statements. intended SEC's XXA on certain Copies of of words call and plans, that the Risk are are on within amended to of variations including in XXXX management sec.gov. as as website similar such believes, documents expects, and for the the of XXA available Act XXXX Securities company's the from ended anticipates, the Exchange These statements forward-looking Form expressions second made control the like of of are XX-Q and meaning those which the such beyond we are hopes, estimates conditions, set at the today's subject report contains quarterly to many . Words Before forward-looking of of the projects, Section statements the to Act amended. these numerous should, intends, quarter

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

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

second XXXX call. everyone, our Welcome, to quarter Jason. Thanks, earnings

services. lead as comprised announced division. X Fiber Previously, Crown further division Optic we know, has construction was pipe well divisions: you expansion and expanding of Film been scope of into remediation. lead inspection most of our its as pipe As our Recently, Electrokinetic Crown

growth while importantly, attracted total markets to of verticals, a markets. revenue Most top talent our sometimes what advantage within divisions start across go to to film and ensure of all broader that X Film with both complementary allow long we've I'd process. of existing our division to of today. addressable have of believe we them. be now and which a been discussion large, us across tedious has our a and taking profitability all drive X customers The of We development Electrokinetic execute and like we team

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him you update today, important time. the to at I've Sheldon? with call film division. We're take him him manufacturing the status further the job. asked target perfect excited a knowledge on have window to a glass leadership role and person on this the with insert, for here our technologies and formations, His glazing different of ink market, provide of is Sheldon us our make

companies, small interact technologies. opportunity to I to had from share with In windows, and dynamic the I all We worldwide. this, division. my building talk lab different large. the much owner and and previous Film our Doug. you, what they and update amazing appreciate glazing on building also explore more. novel frustrations opportunity Crown Thank I company, electrochromic this many solutions needed about progress and facade, to shading engineers saw wanted. of occupants, lot so potential I I tenants, Through ElectroKinetics business. to They of about different learned their a

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more Technical has X available year. the end enthusiastic part to be excited to Inserts quantities We in the today. of progress Smart Window been still am of the expect good. and Gen Crown Alpha be by I limited

update. the Now

demonstrate convert As had mentioned, a into capability. manufacturing to of The in breakthrough were this early the breakthrough technical validate the the capability. able team part [indiscernible] and We working is significant year. division Film hard to

making are good We progress.

products The This business. Our milestone critical our begin techniques foundational development new partners is success market. a ultimately, to required the deliver technology. to is necessary to bring There and and to and, are a successful team launch capabilities product our coming expected to XX-inch be was for out film to Alpha our to full production in more months. done ramp must that production the mastering the much release. parts required a The build

team, building and reshaping senior team. begun starting with we've so, out the management our do To

and Chief us Vandal Prouhet earlier, continues this his an Business important our Innovation crucially Tim in Chief Francois film shifted to Tim Director Rob to in He been and role of Development. role activities. Officer; we Koch play work far. getting added Technical has as as development announced As Koch's Officer. leadership

We are done. thankful for all he has

to leadership. bring technology focus film advancing the to joined the as product Rob and the Vandal wonderful extensive our market he plant will industries. Officer, is business. be manufacturer, technical CEO. This best experience in as Tim addition Rob has a very establishing and continue to our in experience market. been help to launching In as product he on familiar bringing critical automotive design and Guardian with strong will role is rounds a Moreover, his building to our manager order grow Automotive. having Chief Innovation in previously product technology This a out platform in

they experience of skill and and will and I'm known us future and into Business excited Prouhet strategy, Tim Rob that the this I Francois many, wrap chain Moreover, capabilities action. potential for translating I've value with financial planning To success. Francois up, know role our developing be worked is as important for broad understanding that Director many the the team. required He by play there done. an brings much in Development. success. in to for analysis position years. Francois has work and of he go-to-market joins

Our to We remain management Gen I in forward. Launch calendar are about Doug. Alpha a changes the year. this QX optimistic strong will step of X call over turn our now

Thanks, Sheldon. right. All

construction some it. not great last division. deal fiber has about the market, operate Let's within importantly, fiber nearly how us to more taught move years into how, valuable a to and pretty operate X The lessons, optics both the

markets February As as named Boaz Crown early who leadership year. evidenced report, multiple President financial this in we Construction under . revenue the Corey Fiber in of of today's of is generating in

positive We Idaho, flow that to only to change Corey cash Oregon added have from on X. be Crown Nevada, and our us revenue model current customers but projects project Day in allows Mexico. and helped not Crown operating a

margins. of pipeline control to a a that and on market that we Corey basis model credibility project opposed income. and our with As of by to leveraged in and generate includes with well business couple positive proven allowed model The subcontractors. connections Crown to allows will revenue deploy a project number revenue This allow lock as its hiring hundreds to of outside Crown pipeline generating limited net a now employees, third-party has as significant them costs Crown build soon employees us projects.

large X revenues. ] eventually agreement. to of and last constitute project. additional call [ approximately awarded in X our of backbone additional being drilling. we will through that July, on California. under We State continues and in had directional also Nevada. this Those communicated clusters stages horizontal in clusters anticipated of project Nevada That that generate that previously secured some the Previously, $X.X Crown primarily it the clusters includes In cluster X We received announced we the awarded million plowing Nevada the a project an were as we

not the efficiency awarded due commitment to to high were completed been would for the additional customer continuing awarded have which additional be happy that large have to business awarded the the we to the we're we're this receive work revenue pipeline. pleased fuel work the to Obviously, if quality of say, project. other and customer. our opportunity of continue to our satisfaction sections work project not We customer our Suffice for brings. we and additional High repeat this expectations. exceeding with We're

development. Twin Dolphin and X,XXX master in is residential an high-end located Los Our The housing exclusive Mexico plan ongoing. is Club project with resort Twin Club Cabos, Dolphin

is construction We've slant various constructing of hotel from the freshwater for actively provides development. surrounding videos currently ocean plant planned posted well that our Crown the wells residential slant to social frame, desalinization and time the is our is expected Boaz. and in conclude to managed and $X.X project in Corey by generate dolphins Twin The is million expected opportunity channels. revenue. early fall to about the was generated The media on

and new of We revenue expect well approach to to new this Mexico, Caribbean. America construction the lead in opportunities Central plant

XX.X on poor Pipelines our of remediation. pipes complexity given about The and Element focus focus pipe American lead numbers as Pipelines. higher Resource AX Council U.S. divisions, could as Agency estimated formation drinking mapping PE to on taps. enormous like systems. an numbers The focus problem These PE X the and water estimates lead that our enormous for of X.X now water be Element million in pipe inspection high has represents will will on Protection pipe the million National I'd pipes. States. the and new country's significantly drinking -- Environmental United to Led carrying the water AX lead our

experts, David President a as range, experts establish these their water the XX-year Pipelines; industry divisions, joins resistance, To veteran Crown has Hansen Despite Chief expert company's the assist revolutionary a engineering XX world-class Kinsella, Chuck for Adviser Assessment. offer and as Mike will method. various using management Swordfish pipe through services, Element drinking Element have roles team of operators. joined project lead machine households Mr. risk Kinsella, his of team Lead California-based detects with company Chuck XX-year agree of Pipe Element Campos pipe PE remain automatically Swordfish Hansen, materials and handheld water. XX millions low-voltage and intelligent serve exposure of electric and Element To and at hired in projects. innovators to a XX Crowd that Electroscan, [indiscernible] tool.

Before no already Swordfish the Chuck commercially commenced than identifies technology or lead pipe Florida. excavation to was multiple Element available significant U.S. XX and Hansen's and new other The materials. accurately in expertise technology by provide and quickly EPA, advantage. competitive burried York, Swordfish recognized digging Crown reliably pipe, accurately has New Swordfish, and Virginia projects identify with XX

QX this and it Over review handle to All Element remainder that, Joel XX, the purchase going With results, turn Joel? right. making remarks. our orders of the a year. next X, over targets for closing month of for the of revenue to announcements and we'll or I'll the course I'm regarding financial be calendar

afternoon, Today, XXXX everyone. walk financial we second Crown's through quarter Good will Doug. you, Thank results.

the with on July qualifications Crown XX though, closely working Crown's as update listing a a being compliance. on NASDAQ compliant the financials. from Firstly, received notification again. that to On department Crown QX confirms NASDAQ, After quick just fully

represented XXXX, increase ended of . of got sixfold compared quarter first to which For the million the quarter Crown $X.X June this net year. revenue XX, a

Crown $X.X XXXX, for XXXX X the the June For in $XX,XXX which ended to at the by was XXXX, and for Optics at $X.X labor $X.X of ended $X.X million were equipment XXXX, XX, to X months The materials million and XX, X cost ] generated Revenues, $X.X ended of for of of revenue stands XXXX, $X.X revenue the months and and includes and million June XXXX, related solely $X respectively. million, There million XX. $X.X supply, XX, and $X company's just Fiber [ million the million June million, costs costs X respectively. subcontract was months of other June ended compared now which maintenance months million.

compensation were related million. operations in wages losses is The of expense. million, million $X.X quarter to were the line increase of in were increases which $X.X XX Losses to $X.X the million in June which $X I $X.X of to of $X.X for the fees salaries addition in year-to-date million, compensation compared for $X.X This in QX were second primarily last R&D new from million respectively. compared the were professional a the in Depreciation the million $X.X reduction same of benefits, for the June in G&A and amortization is film months increase million for months million $X.X benefits expense related noncash ended stock million $X.X $X.X and in an for million G&A by quarter X operating and and to decrease offset expenses million million, of $X.X in with expenses XXXX. the XXXX. related XXXX. leadership. $X.X quarter to quarter, included X includes

Finally, or debt was due year's in other cash. compared last The reductions net million to $X value million restructuring. and write-down amortization improvement sheet were for including expenses, $X.X million. losses On to reduction to balance fair $X.X interest

For raised million we financial million with are our $XX.X of the -- million at to . through X previous cash primarily financing cash update. million. strong forward, trajectory to $X.X [indiscernible] increased and ended quarter line third expect Doug, in deployed net And June $X That the to against and to you. $X revenues as of the the concludes guidance looking be operations. XX, continue growth $X.X back million projecting just company activities, months

Joel. Thanks, All right.

watershed the our call, to where were the that at tremendously. if also at compared terms look third last pretty look construction. time in in our days we out that substantial. I it believe both generation. is I'll grown revenue if year compared you everybody XX . beginning ago a growth you progress we during utility some call, this was are investors pointed mid-November. to our mode and which And be year the believe our a XXXX where company where for the to are, forward back operator. ago, we've going is should of Thank turn today, With we actually look in to that earnings our EBITDA And We we generation We to at just to On be where of that, crowd talking quarter you. was

today's now attending This concluded. conference for has Thank you presentation.

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