Perimeter Solutions, SA (NYSE:PRM) Q4 2022 Earnings Call Transcript

Edward Goldberg: Sure, you bet. So first of all, let me say that we’re very confident that we have the best product in the industry on virtually every measure and that it isn’t even close. So we’ve got a long history of delivering effective safe and environmentally favorable products in this industry. And that’s really kind of the ante to the game. What we’ve built over time is an infrastructure both in manufacturing, distribution and air-based services that we’ve built over many years that delivers near 100% reliability. We deliver retardant 24/7 throughout the year. We can deliver almost anywhere in North America within hours. And we basically own and operate the largest air tanker bases or the equipment and facilities at largest air tanker bases in the U.S. So what we’ve built is meant to deliver extremely high reliability whenever the fire season or whenever the fires are burning all year long and that’s something that, that we don’t think can be reproduced in any material way without tremendous investment and timing.

Thomas Jonsson: Great. Thank you. And then just the last one here. I know that international expansion is more of a long-term goal for the Fire Safety business. But we kind of have another quarter here where unfortunately there’s been severe wildfire activity outside of the core market, mainly in Chile, thus far in 2023. So I guess just a quick update on maybe international strategy, as well as what you are seeing from customers outside the U.S. and interest in your fire retardant?

Edward Goldberg: Sure. So I think I probably described this before, but let me describe it again. Outside of North America, we have our traditional markets that we’ve been serving for many years and those include both Chile and Australia where we’ve seen buyer activity early in 2023. We are active supporting fire activity in Chile right now. And we continue to serve, kind of, those traditional markets, South America, Australia and to the Mediterranean area of Europe. In addition, we work very hard with governments that are starting to experience wildfire issues. To help them build their programs over time and we see these as emerging markets. And I think in previous calls, I’ve talked about the progress that we made in Greece, where over many years we worked with them to develop a retardant program and they became a retardant customer in 2022.

So we continue to be excited about our international markets, we’re going to continue to serve those traditional markets and help them grow their programs. But also work with new and emerging markets to help them deal with the wildfire issues that are expanding geographically around the world.

Thomas Jonsson: Got it. Thanks. I’ll turn it back there.

Operator: Our next question comes from Brian DiRubbio with Baird. Please go ahead.

Brian DiRubbio: Good morning, gentlemen. A couple of questions for me. Just first off when you came to market, you broke out some of the revenues of suppressants versus retardants. Obviously, you made some commentary about that breakout today. Is that something that you’d be willing to disclose just even the revenue line of how much sales is coming from suppressants versus retardants?

Haitham Khouri: Probably not on this call. That said, keep your — our 10-K should be out soon and there is more retardant versus suppressant disclosure there. So you will have an answer in your hands very shortly, although not quite on this call.

Brian DiRubbio: Okay. And that’s going to be just an annual update that you can provide or is that something that you’re going to provide more disclosure on a quarterly basis?

Edward Goldberg: As it stands now with our disclosure, we tend to break out suppressant versus retardant annually. We won’t give any specific consideration to adjusting that, so that’s what I think we should assume going forward.