Nanophase Technologies Corporation (PNK:NANX) Q4 2023 Earnings Call Transcript

We talk every quarter often without enough to share to make these calls meaningful. Our investors search for little kernels and tidbits of information and what we say and often draw conclusions that are not representative of the opportunities we have before us. We’re playing the long game here. We built something that we believe will be sustainable and enduring. We’re competing in an exciting industry that wants more from us, and we’re positioning ourselves to deliver. Why don’t we get right to your questions? Although, we know that most of our investors listen to the webcast or review the transcript after the live call, we’d like to invite those participating in today’s call to ask any questions you may have or to share your feedback. Afterward, I’ll offer a few closing comments.

Carmen, would you please begin the Q&A session?

Operator: [Operator Instructions] We have a question from the line of Wayne [Roen], Private Investor.

Unidentified Analyst: How long will it be before we have the next quarterly report? And it’s been difficult trying to get hold of anybody to ask them questions in this last five months. You leave a message and you call and nobody gets back to you. And other than that, I’m glad we are looking for sunnier days.

Jess Jankowski: We are and we’re living in them. Regarding the next call, we’ll probably have it later in April, I’m guessing, depending on how long it takes to close the books et cetera. So far, we’ve had decent results for the first couple of months. Got to close-up March. And we’re also, this time of the year, we’re also hustling to get through our annual audit and file our annual report which takes a lot of time, which is part of the reason the first quarter results always drag out. Regarding the Investor Relations, we don’t really have a full blown department to do that. We have somebody that pitches in who is wonderful, but very — doing a lot of other mainly accounting related work. And that’s something that we would like to expand at some point in the future when it makes sense.

We also have an issue that our — and I know it’s human nature that most of our investors or many always get most interested in results during what we would call a quiet period, which is that last period of any month prior to an ending period where we know we’re going to release results in a few weeks and we really can’t talk about anything except three months ago’s results. But I do understand that that’s frustrating and that is something that we are thinking about. And one of our ideas has been and it’s just a matter of really me making it happen more than anybody else is to have more regular updates on our Web site. And that’s something that hopefully we will get done soon and then we’ll be able to address that. But thank you, Wayne. And I do appreciate your concern.

Operator: [Operator Instructions] And it comes from the line of James Lieberman with Revere Securities.

James Lieberman: It does seem like you’ve accomplished a great deal in terms of managing through the incredible challenges of growth and supply chain and capital requirements in the process. And I know it’s been a painful long process, but it looks extremely well, extremely methodical and I’m pleased about that. So it really looks like your order flow looks terrific in spite of the fact that you have difficulty delivering. So that’s — just give a little bit more color on that is how sticky are those orders with — considering the length of time to deliver. But it also seems like now that you’re feeling more comfortable in your production throughput that you’re starting to answer those questions and make your customers feel better. Can you give a little comment on that?

Jess Jankowski: I’ll say a few words, and then I’ll invite Kevin to comment. I think that just from a perspective of a cynical financial background guy, it drives everybody here nuts when we can’t make a customer happy by delivering on time. And I think it’s a testament to the quality of the products. We’re not under any illusions that people just like us and they’re willing to deal with late shipments or not getting things on time. And financially, the way this business works, which is very different from the advanced materials business, is that in terms of seasonality, the more you can deliver the first time they want it, the more the follow on order is going to be or the more they can saturate whatever outlet they’re in. So we see it — as we solve this problem, we should be getting back to much greater 9% year-over-year growth rate for Solésence is really only a function of us not being able to deliver those materials.

And I lament any volume that we left on the table but I also think we are so focused on it that’s something that we’re going to do much better with this year. And I’d ask Kevin to add some color to that.

Kevin Cureton: And I think really, Jess said most of what needs to be said on this subject. I do think we continue to — as you’ve seen in our press releases win awards in our segment in large part because of our points of difference and that does translate into better sell through for our clients. And so that in and of itself means that they have an opportunity to gain share in the market and grow faster than the market. And as long as we’re doing, as Jess outlined, filling those orders as much and as fast as possible, we’ll continue to benefit from it.