Conference call highlights
* 2013 backlog $5 million
* 2014-2015 opportunities/leads $50 million
* Continued interest in several countries for ECOTRAX
* $ 500 million total North American market for construction mats
- AXION expects to be able to gain market share of this
* Goal is to integrate their supply chain
- Translation: they want to operate their own facilities &
produce their own plastic flakes. Currently, they do a mix of
sub-contracting, leasing, renting of equipment
* Q&A on margins (currently at 13.48% based on current mix)
- Ties
- Structure
- Mats
... they are shooting for a 150,000 lbs plastic / day to be able
to achieve above gross margins above 20%
* Interesting question about STRUXTURE line and the one-time
charge for fair value of derivatives.
- the fair value for derivatives will always be a non-cash
charge
- STRUXTURE: a project bidding process and long lead time
process. They say that they are working on a number of
projects, but not the key focus of their production and sales
strategy. This market will be slower to develop.
...very competitive on pilings, girders, I-Beams, e.g. the
sub-structure. Their product struggles with "topical"
profile items. He gave the example of top, visible
boardwalk boards.
___ I think what he is getting at is that they make big,
thick, strong items, but they have not engineered
thinner, more aesthetically designed products.
* Last thing that I noticed from the conference call ... at least up to the 30 minute mark when I posted this post ... is that there was only 1 investment company or institutional investor who called in for the Q&A. I think it was the 1st caller.
___ I don't think that the big money is looking at this
company at this time. I hope they do this year.
-D&C
