Crown ElectroKinetics Corp. (NASDAQ:CRKN) Q3 2023 Earnings Call Transcript

This project is expected to run five to seven years. We say, we are excited about this customer relationship as they are to have our crews, skill set, and equipment as part of the development offering. So much so that we will be discussing future local projects and multi-state projects with this customer. For our future pipeline, our team has been working diligently to expand our customer base and grow our teams to meet and exceed the current and future needs of our customers. Over the next month, we will be speaking with three nationwide companies and one international company about their needs and how Crown fiber office can be part of their solution in building better communications. We look forward to everything that’s coming down the pipeline.

It’s going to be an exciting adventure. I’m glad that we’re here. With this I would like to go ahead and pass the call over to Mike for our construction updates.

Mike Sullivan : Thank you Dave, and hello, good morning. It’s a pleasure to meet with you today and provide an update on our status. Currently we have established a yard, office and shop facilities in Arizona. This location is close to our workload in Mesa and Chandler as Dave described with the current contracts we have. This eliminates a lot of windshield time and gets us on the job efficiently and effectively. Additionally we’ll be adding fuel storage to our yard which again increases our efficiency and cement silos and I’ll go over that later as we discuss volumetric trucks. For production equipment, we have three directional drills ready to go. We have the crews established to manage those machines. Total production between all three machines is around 2,200 feet per day.

We have micro-trenchers in market. Two units are here right now capable of producing 4,400 feet per day and we have three additional units ordered. And as I said, volumetric cement trucks, we’ve ordered two. One is on its way here. The second one is in the manufacturer right now and the reason we’re going with that is that increases our effectiveness and efficiency in the field. Rather than ordering ready mix we can produce our own grade of concrete or slurry and clean up our job site. This allows us to continue production because our cleanup is done and that puts more permits and more work in front of us. Additionally we have three VAC units and three additional units coming in. VAC unit is a piece of support equipment that is required with both the directional boring and micro-trenching.

We’ve established direct relationships with the manufacturers of this equipment and have a projected pipeline and production reserve as we increase contracts and production goals. As Dave described, the pipeline of work is ongoing and increasing as we move along here. The market is huge right now for telecommunications infrastructure and we anticipate five to eight years of growth in this market. And therefore we’ve coordinated the efforts of equipment procurement and staffing such that we can address the needs of our clients. With that I’m going to introduce Jeremy Hubbard, Director of Recruiting.

Jeremy Hubbard : Thanks Mike. Thanks Dave. It’s a pleasure to be a part of this team. As a Director of Recruiting here at Crown, I lead the town acquisition strategy and execution for our growing and dynamic organization. Behind me, I have over 15 years of experience in the staffing and recruiting industry working with clients across various sectors, disciplines, and geographies. I’m born and raised here in Arizona. I hold a great market behind me and I hold core competencies in business planning, sales, consultation, as well as employee benefits in new business development. I hold two degrees in international business in marketing from the University of North Florida as well as studying abroad in three different countries to gain a global perspective of cultural awareness in our market and variety other industries.

I’m very passionate about finding and retaining the best talent for Crown Fiber and empowering them to succeed and thrive in their roles. So what I’d love to share with you today is just our current status where we’re moving, where we’re grooving and where we’re growing here in the near future. So currently we have five crews established in just one month. I was able to design five crews comprised of skilled labor, general labor, equipment operators, foremen and leadership. Of course, this has been instrumental in breaking ground on our first project which we did break ground on time and is currently in process. We’re very excited about that. In addition to my recruiting efforts, I’ve also brought on three subcontractors to aid and help us with the added business that we’ll be bringing on board.

That way as I build out this squad and multiple other teams we can also grab other business that may come upon us. I do have additional subcontractors in process as well to tag into whenever we need, so very good on that side. I also want to foreshadow some expected growth due to these new clients that David and Mike shared with you. I’ll be building out teams for our fiber splicing division, engineering teams, micro-trench teams and then continuing to build out our directional drill teams. Part of my recruiting process is working hand in hand with Dave and Mike, is identifying the needs in regards to the equipment that Mike has got for us as well as how and what talent do I need to bring in charge with that equipment to achieve Dave’s project.