Firan Technology Group Q2 2024 Earnings Call Transcript

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Provided by Quartr
July 11, 2024

Key Takeaways

  • FTG posted Q2 bookings of $58.7 M (+46% YoY), revenues of $38.8 M (+14%), adjusted net earnings of $2.6 M (+13%), adjusted EBITDA of $6.5 M (+25%), and free cash flow of $2 M.
  • They secured a ~$17 M contract to supply cost-tested assemblies for China’s C919 aircraft, with production in Toronto starting H2 2024 and transitioning to Tianjin through 2026 after a 12-year development.
  • FTG ended Q2 with a record backlog of $120 M (up 22% YoY) and a book-to-bill ratio of 1.51, with over $50 M due in Q3.
  • Integration of acquisitions advanced as Circus Minnetonka went live on FTG’s ERP—recovering throughput by May—and Circuit Haverhill added new drill and electrical test equipment while expanding its customer base.
  • Demand across aerospace and defense remains robust, highlighted by Airbus and Boeing ramp-up plans, strong commercial and business jet backlogs, and elevated defense spending supporting long-term growth.
AI Generated. May Contain Errors.
Earnings Conference Call
Firan Technology Group Q2 2024
00:00 / 00:00

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Operator

Good morning, everyone. My name is Rochelle, and I'll be your conference operator today. I would like to welcome everyone to the FTG Q2 2024 Analyst Call. All lines have been placed on mute. There will be a question-and-answer session following the call. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star followed by the number two. Please note that this call is being recorded. I would now like to turn the call over to Mr. Brad Bourne, the President and Chief Executive Officer of FTG. Mr. Bourne, you may proceed.

Brad Bourne
President and CEO at FTG

Thank you. Good morning. I'm Brad Bourne, President and CEO of Firan Technology Group Corporation, or FTG. Also on the call today is Jamie Crichton, our Chief Financial Officer. Before we go any further, I must caution you that this call may contain forward-looking statements. Such statements are based on the current expectations of management of the company and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the company's industry generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the company. The listener is cautioned to consider these and other factors carefully when making decisions with respect to the company and not place undue reliance on forward-looking statements.

Brad Bourne
President and CEO at FTG

The company does not undertake and has no specific intention to update any forward-looking statements, written or oral, that may be made from time to time by or on its behalf, whether as a result of new information, future events, or otherwise. We continued with our positive momentum in our Q2. As always, we had a few challenges to overcome, but we succeeded thanks to the efforts of the people across FTG. I would like to thank everyone at FTG for their hard work and their contributions to our success. Our success is a team effort among all 670 staff across the company and around the world. In Q2 2024, FTG achieved some strong financial metrics, including our Q2 bookings of CAD 58.7 million were up 46% over Q2 last year.

Brad Bourne
President and CEO at FTG

Our Q2 revenues of CAD 38.8 million were up 14% over Q2 last year. Our adjusted net earnings in Q2 2024 of CAD 2.6 million were up 13% over Q2 2023. We achieved Q2 adjusted EBITDA of CAD 6.5 million, which was up 25% over Q2 last year, and we achieved free cash flow of CAD 2 million in the quarter, an increase of CAD 2.4 million over Q2 2023. Other accomplishments in Q2 include orders received in the quarter, a total of CAD 58.7 million, resulting in a book-to-bill ratio of 1.51:1. Within this, we were awarded a contract value at approximately CAD 17 million to supply cockpit assemblies for the C919 aircraft in China. Deliveries will start in the second half of 2024 and continue through 2026.

Brad Bourne
President and CEO at FTG

Production will take place in FTG's manufacturing facilities in Toronto, Canada, and Tianjin, China. Production will start in Toronto and transition to Tianjin during the contract period. This is after twelve years of development efforts on this program. As of May 31, 2024, our quarter end, we had a total backlog of about CAD 120 million, which is a 22% increase over Q2 last year. Integration activities in Circuits Minnetonka progressed well in the quarter, including going live with the FTG ERP system. There were some production impacts from the ERP transition in March and April, but May saw a return to expected throughput. Circuits Minnetonka also renewed a multi-year contract with one of their largest customers at improved prices in the quarter. Integration activities on Circuits Haverhill advanced with the receipt of a new drill and electrical test equipment.

Brad Bourne
President and CEO at FTG

The expansion of the customer base progressed well in the quarter. The site installed new servers and the FTG ERP software in the quarter. The full implementation of our ERP system is targeted through the second half of this year. Jamie will provide more details on our Q2 results shortly, but first, let me turn to some external items. Our end market demand remains strong. Last year, Airbus delivered 735 aircraft. Through June 2024, they have shipped 323, which is up slightly from year to date, June 2023, but below their target rate for the year. But within this, for Q2, they delivered at an annualized rate of 724 aircraft, which is very close to their target. Q2 shipments at Airbus were 27% higher than in Q1.

Brad Bourne
President and CEO at FTG

They are looking to ramp to almost 1,000 aircraft annually in the next few years, and this is a 35% production rate increase. Airbus has a backlog of over 8,000 aircraft on order, which is over a decade's worth of production at current production rates. At Boeing, last year, they shipped just under 500 planes and plans to ramp their production by 40% to almost 700 planes per year in the next few years. Boeing's backlog is almost 6,000 planes, so also over a decade's worth of orders at current production rates. But the FAA has told Boeing to limit production while they ensure there is sufficient focus on quality. In Q2, Boeing delivered only 92 aircraft, which surprisingly is up 11% from Q1.

Brad Bourne
President and CEO at FTG

For the first six months of 2024, shipments at Boeing were down 33% from the first half of last year, primarily due to the impact of the incident with Alaska Airlines. In the business jet market, Bombardier reported low single-digit shipment growth for 2023, and the projections for 2024 are for a similar level of growth. It was good to see that they settled their labor dispute yesterday. Gulfstream is projecting high single-digit level growth for 2024. This industry remains in a growth mode. In the helicopter market, Bell Helicopter reported 31% revenue growth in 2023, and are projecting near 10% growth for this year. However, shipments of new aircraft were down slightly in Q1 2024. We remain positive as we look to future demands in various market segments in the coming years.

Brad Bourne
President and CEO at FTG

I also look to results from key defense contractors, and of note, Lockheed Martin revenues in Q1 this year were up a surprising—or Q2 this year, were up a surprising 14% over last year. The ongoing political challenges in the world will keep defense spending high for a period of time. Looking to the longer term, Boeing's most recent 20-year forecast shows long-term industry growth, and it continued to show 20% of all new aircraft deliveries going to China and close to 40% going to Asia, as has been the case in all of their recent forecasts. The business jet market has already seen traffic recover. A recent longer-term business jet forecast from Honeywell similarly predicts growth in this market in the coming years, with near double-digit growth rates for the sector.

Brad Bourne
President and CEO at FTG

The simulator market mirrors end market application, but as we always remind everyone about this market, it is lumpy, so larger year-to-year variations do occur. As we have said for many years, FTG's goal is to participate in all segments of the aerospace and defense market as each moves through their independent business cycles. It's not often all segments are growing together. That seems to be the case right now. Beyond all this, let me give you a quick update on some key metrics for FTG for Q2, 2024. First, the leading indicator of our business is our bookings or new orders. As noted earlier, our bookings were CAD 58.7 million in Q2. This resulted in a backlog of CAD 120 million at quarter end.

Brad Bourne
President and CEO at FTG

Again, the large order for cockpit products for the C919 aircraft drove the orders in the quarter and the increase in our backlog. In Q2 2024, sales were up, there were CAD 38.8 million, which is CAD 4.8 million, or 14% above Q2 last year. Our aerospace business was down CAD 3.6 million in Q2 versus Q2 last year due to a combination of lower simulator sales in the quarter and some customer-driven delays on new assemblies that we could not ship in Q2. The backlog remains strong in this business. Our circuits business grew by CAD 8.4 million or 40% in the quarter, primarily due to the acquisitions, as we owned them for one month in Q2 last year and the full three months in Q2 this year.

Brad Bourne
President and CEO at FTG

At Circuits Minnetonka, the run rate in Q2 was approximately $25.4 million-27.5 million annualized. This is showing good progress towards getting them to revenue levels, where they will materially contribute to FTG's sales and profitability. This is more impressive given the fact that they went live with the new ERP system in the quarter. While this did impact production levels early in the quarter, sales in Q2 were up 6% from Q1 to Q2. They had strong bookings again in Q2. After a bit of a slow start to 2024, Circuits Haverhill ramped 60% in Q2 compared to Q1 this year. Overall, at FTG, our top five customers accounted for 55.9% of total revenue in the quarter. This compares to 52.6% last year.

Brad Bourne
President and CEO at FTG

But of note, two of the top five are new this year, and both are as a result of sales from our Minnetonka site. One was an existing customer that grew with the acquisition of Minnetonka, and the other one is a new customer to FTG. Also interesting to note, of the top 10 customers, five are customers shared between Circuits and Aerospace. We like to see the shared customers as it means we are maximizing our penetration of these customers by selling both cockpit products and circuit boards. Also of interest is one of our top 10 customers in Q2 2024 is a customer for aftermarket defense items. In Q2 2024, 25.5% of our total revenues came from our aerospace business, compared to 39.2% last year.

Brad Bourne
President and CEO at FTG

The aerospace business share decreased partly due to the impact from the acquisitions, which were both in the circuits business, as well as the decrease in simulator business. I would now like to turn the call over to Jamie, who will summarize our financial results for Q2 2024, and afterwards, I will talk about some key priorities, priorities we are working on. Jamie?

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

Thanks, Brad. Good morning, everyone. On sales of CAD 38.8 million, FTG achieved a gross margin of CAD 10.8 million, or 27.9% in Q2 2024, compared to CAD 10.1 million or 29.4% on sales of CAD 34 million in Q2 2023. The increase in gross margin dollars is the results of increased sales volumes at the newly acquired circuits sites and operational improvements. The gross margin rate for Q2 2024 was 0.7 margin points lower than the prior year quarter, adjusted for government assistance of CAD 0.3 million. The gross margin rate in Q2 2024 was negatively impacted by lower sales of simulator product sales, which tend to be lumpy, and lower productivity in the early part of the quarter at Circuits Minnetonka during an ERP system implementation.

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

By the third month of Q2 2024, the ERP implementation was substantially complete, and weekly productivity at the Minnetonka site exceeded the levels which had been delivered prior to the system implementation. On a sequential basis, Q2 2024 gross margin increased by CAD 1.9 million, or 2.4 margin points relative to Q1 2024, on a sales increase of CAD 3.8 million. Q1 2024 gross margin was negatively impacted by a six-week strike at FTG Aerospace Toronto, which was resolved in January 2024. The average foreign exchange rate in Q2 2024 was CAD 0.7 or 0.5% more favorable than Q2 2023, so it was not a material factor in our results.

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

Annualized revenue per employee in Q2 2024 was CAD 234 thousand, which was down by 0.4% from Q2 2023. Again, the simulator products revenue was lower in Q2 2024, and those assemblies include a high content of purchased components. SG&A expense was CAD 4.8 million, or 12.3% of sales in Q2 2024, as compared to CAD 4.4 million, or 13.0% of sales in Q2 2023. The increase in SG&A is primarily due to picking up three months of SG&A at the acquired sites this year, as compared to one month in the prior year quarter. The SG&A percentage of sales has declined with the increase in sales.

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

R&D costs for Q2 2024 were CAD 1.6 million, or 4.1% of sales, compared to CAD 1.6 million or 4.8% of sales in the prior year quarter. R&D efforts include process development in the Circuit segment and efforts to develop and qualify products for future aerospace programs. Adjusted EBITDA was CAD 6.5 million, or 16.7% of sales for Q2 2024, as compared to CAD 5.2 million, or 15.3% of sales for Q2 2023. EBITDA adjustments were limited in the prior year quarter for government assistance and acquisition costs.

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

Adjusted EBITDA for the trailing twelve months period ended Q2 2024 is CAD 22.0 million, or 14.6% of sales, on sales of CAD 150.4 million, with net debt now reduced to 0.24 times adjusted EBITDA for the trailing twelve-month period. Free cash flow, defined as net cash from operations and investing activities, including activity effects of foreign exchange, excluding acquisitions, less lease liability payment, was CAD 2.0 million for Q2 2024, as compared to CAD -0.4 million for the prior year quarter. The increase in free cash flow is a result of increased operating cash flow and lower capital expenditures.

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

CapEx investment for the second half of 2024 is expected to be in line with our long-term target of 8% of revenue, excluding approximately $1.1 million for a partial roof replacement at the FTG Circuits Toronto facility. We are entering the second half of 2024 with record backlog of nearly $120 million. Our focus will be delivering quality products to our customers on a timely basis and improving the efficiency of our operations. Our complete set of Q2 filings are now on SEDAR+.com. With that, I will turn things back to Brad.

Brad Bourne
President and CEO at FTG

Thanks, Jamie. Let me delve into some other items in the quarter and/or for the future performance of FTG. We continue to believe our staffing levels are at about the right level to support our current demand. While we might tweak it slightly from site to site going forward, the majority of our staffing challenges are behind us. We always remember that we make money by building and shipping products, so we do spend a significant amount of time and money driving process and productivity improvements at all sites. This can include manufacturing process improvements, but it can also involve things like automation. We now have a number of robotic systems operational at our Circuits Toronto facility, and maybe surprisingly, at our Aerospace Tianjin facility. We are adding robotic process in our Aerospace Toronto facility, and in the quarter it made some production parts, but is not yet fully operational.

Brad Bourne
President and CEO at FTG

But automation goes well beyond robotics. We have a lot of very automated equipment across our Circuit sites that help drive both productivity and process control. Automation will continue to be a key area for investment across the company. Looking forward, the key item for us remains the integration of our new sites. For Haverhill, we acquired them to grow our presence in the RF circuit board market for aerospace and defense applications. While they are small, with a historic run rate of about CAD 4 million-5 million, we like their capabilities. The integration is relatively straightforward, as we intend to continue to operate it in its current facility with its existing staff. Our focus will be to engage our sales team with them to find new customers and to grow the business.

Brad Bourne
President and CEO at FTG

This is not an overnight process, but one where we can generate incremental margins and profitability to the benefit of FTG. Going along with this will be some focused CapEx to address a few production constraints to enable future growth. Two new drills and an electrical test machine have been added to the site during the quarter. We did achieve some targeted material savings, which will benefit us going forward as well. And finally, we will move them onto FTG's ERP system in the future. This project is just getting underway. FTG Circuits Minnetonka was the larger acquisition. Their sales were over $31 million before the pandemic. They were hurt in the pandemic like we were. We see the long-term positioning of Minnetonka to be a source of high technology circuit boards, similar to our Toronto facility, but with a U.S. footprint.

Brad Bourne
President and CEO at FTG

This U.S. footprint is critical as we will look to grow our share of the U.S.-only advanced circuit board market in the defense area. In the short term, we have three priorities as we integrate Minnetonka into FTG. First, we need to ramp their production and throughput. They have closed the gap by about 50% to get back to their pre-pandemic run rate. We continue to see strong demand, so ramping throughput remains our priority item for this site. In Minnetonka, the second priority is to reduce material costs. We have identified cost-saving opportunities that can benefit this site, as they are now part of a larger company. It is taking some time to achieve the savings, and in some cases, it requires customers' approvals and internal engineering efforts.

Brad Bourne
President and CEO at FTG

When complete, we expect to achieve savings on the order of CAD 1 million annually. Our third priority is to improve pricing. We have had some successes already and we will continue to address this. We want to ensure any inflationary costs incurred at that site over the past few years, whether material, labor, or other, are passed through to our customers and not squeeze our margin. We did renew a contract with one of our key customers with increased pricing and incremental revenue during our Q2. Beyond these actions, we had plans to move them to FTG's standard ERP system, and at the start of Q2 this year, we went live. There is a transition period as we run out jobs from the old system and ramp up jobs in the new system.

Brad Bourne
President and CEO at FTG

We did experience some inefficiencies and struggled with throughput in March, but April improved and May was back to expected throughput and revenue levels. There's also some noise in our results because we moved from a fairly simplistic WIP and finished goods evaluation methodologies to a more sophisticated standard costing model as part of this implementation. Lastly, while not an immediate integration item, when we bought the site, we believed that we could expand and grow their customer base focused on the U.S. defense market. This has already started. We are seeing some real interest from numerous customers in adding this site to their approved supplier list. That's the good news. The bad news is it's typically a long process to get a new site approved, but we will stay focused on this to grow this site in the coming years beyond their pre-pandemic high point.

Brad Bourne
President and CEO at FTG

In Q2, we saw continued strong demand across most sites. Our total backlog is CAD 120 million, with over CAD 50 million due in Q3. While it's not a good metric, we ended the quarter with just over CAD 12 million in past due orders, but this is down from CAD 14 million at the end of Q1 and down from CAD 18 million at the end of Q3 last year. Over half the past due orders are at our Aero Toronto facility. The strike hurt their deliveries in Q1. They also showed some past due assembly orders, where our customers asked for some design changes, so while they are showing late, this is driven by customer decisions.

Brad Bourne
President and CEO at FTG

For other work at our Aerospace Toronto facility, to help drive down the past due orders as fast as possible, we have worked with our customers to shift some production from Toronto to our other aerospace site, at least for the short term. We have decided to add some additional staff. This should help in Q3 and beyond to recover back to strong on-time performance there. Our challenge in Q3 is available production days. Our Q3 covers June, July, and August, where we have some plants shut down for a week and others see higher vacation absences. Typically, we estimate we lose about one week of production in our quarter, or about 8%. We're expecting to grow in 2024 as compared to 2023, like we did in the first half.

Brad Bourne
President and CEO at FTG

The easiest aspect of our growth will be having the acquisitions for the full 12 months as compared to seven months in 2023. This should add an estimated CAD 12 million in sales to this year. If we can ramp production and sales at the newly acquired sites, this would further add to the growth. We continue to win new programs across the company that will layer on incremental organic growth. At our U.S. sites, we have won some initial orders for a new defense program, where the initial orders are valued at about CAD 1 million, deliverable in 2024. This program should ramp to full-scale production in 2025 and beyond. We will see further benefit from the higher value cockpit product assembly orders first booked in 2023 after we complete the customer-requested redesign.

Brad Bourne
President and CEO at FTG

These assemblies go on Boeing and Airbus aircraft, and we will see the benefit of the C919 program in China moving into production. We shipped our first production orders last year, and we now have over $17 million in orders due through 2026. With the more complex geopolitical situation in China, there might be concerns about our activities there. But in 2023, both our operations had the best sales year ever. This continued in Q2, with the site seeing 30 and 66% growth compared to Q2 last year. As I had mentioned in previous quarters, we repatriated cash back to Canada during the last two years, and in total, we've now brought back $2.2 million in cash. By doing this, we don't have surplus cash stranded in China, and it reduces our exposure if things deteriorated between China and the West.

Brad Bourne
President and CEO at FTG

We are working to bring back more cash in Q3 this year, but we are cautious about our operations in China, as any further increase in tensions between China and other countries could impact our operations there in the future. We continue to assess possible corporate development opportunities that could fit with either of our businesses. There are opportunities out there, but it's too early to know if they would be a good fit and a good deal for FTG. With a focus on operational excellence in all parts of FTG, our strong financial performance last year and the first half of this year, our acquisitions and our key sales wins, we are confident we are on a strong long-term growth trajectory. This concludes our presentation. I thank you for your attention. I would now like to open the phones for any questions. Rochelle?

Operator

Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by two. If you are using a speakerphone, please leave the handset before pressing any keys. One moment, please, for your first question. Your first question comes from the line of Nick Corcoran from Acumen Capital. Your line is now open.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

Good morning. Congrats on a strong quarter and the record backlog.

Brad Bourne
President and CEO at FTG

Thank you.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

Just my first question has to do with the bookings with the 919 or C919. Is this tracking in line or ahead of where you might have originally expected it to?

Brad Bourne
President and CEO at FTG

Interesting question. From, you know, when we started that program 12 years ago, it's definitely tracking behind our expectations by about seven years. But on a more recent basis, it is tracking ahead in terms of the ramp in, in production. You know, that it's—and I forget the exact number. I'm gonna say it's between—it's about 170 ship sets over the next 2.5 years, which is a faster ramp than they had been projecting for a long time. And, you know, for sure, COMAC is looking for ways to, to ramp their production faster to get more aircraft in the field.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

Good. And then how should we think about that contract? Is that loaded up front and then drawn down over the two years, or is there potential for additional renewals before it is completed?

Brad Bourne
President and CEO at FTG

Yeah, I guess two things. You know, for sure, it's, you know, it's a 2.5-year booking, so we will be drawing it down during that period. But, you know, that, that is production orders. They are talking about there will be need to add some spares orders during this period, so there will be some add-ons as a result of that. And then, for sure, before this contract runs out, they will be adding, you know, additional years on the back end of this. You know, this is, this is one of those annuity programs that, you know, should see ongoing revenue for the next 20 years if everything goes according to the plan.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

Good. And then, maybe switching gears to staffing levels. How are you feeling about your productive capacity right now?

Brad Bourne
President and CEO at FTG

Yeah, you know, I'm good with the staffing levels we have, but, you know, as I say, we tweaked them a little bit as we looked at the situation at various sites. And, you know, for sure, we just agreed we're gonna add some additional staff in Aero Toronto right now, because, you know, we had the biggest backlogs there, and the only way to solve that is to build more. And to build more, we're gonna add some staff. And so we're looking to add there. There will be, I think, small adds across some other sites in the near future. You know, we are pushing Minnetonka to do a further ramp in their production in Q3, and, you know, definitely they have the backlog to support it, so there might be a few adds there.

Brad Bourne
President and CEO at FTG

But, you know, we're not talking about 10, or you know, 20s and 30s. We're talking about relatively small numbers at each site. And, you know, in terms of overall capacity, and again, you know, I can't achieve this overnight, but, you know, for sure, at FTG, based on equipment and plants and equipment across the company, we have a capacity of more than CAD 200 million. We would definitely need to be adding staff to get to those sorts of numbers, but that's not something that would happen overnight.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

Good color. And then, there's been a lots of news on Boeing, and I think you mentioned in your prepared remarks that, deliveries have slowed down year-over-year. Is there any indication that the supply chain has started to slow down?

Brad Bourne
President and CEO at FTG

Yeah, I mean, there's a little bit of noise in the supply chain. You know, Boeing's not keen to reduce production rates, because it's a big effort for a company like Boeing to increase or decrease production rates, and if they drop them down, then to ramp them back up would be, you know, a challenge for them. And so they're being cautious about it, but this has dragged out a little bit longer than they, and I think everyone, had hoped. So we are seeing noise in our backlog of, you know, where we're supplying into Boeing programs. But it's, you know, I'm gonna say, it's not something that I'm worried about at this point because we have so much else going on. I think it's not going to materially impact our results in the coming quarters.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

That's helpful. Maybe one last question from me. How are you thinking about M&A for the remainder of fiscal 2024 and into 2025?

Brad Bourne
President and CEO at FTG

Yeah, you know, I'm feeling comfortable with the way the company's running right now. You know, there's always a few challenges that we're working on, but—now, that's giving me time to be a little bit more serious on the M&A front. There's definitely opportunities out there. You know, we've investigated and heard about a number of them in the last quarter. For sure, some of them are not a great fit, so, you know, they've fallen by the wayside. Some others look interesting. So we're gonna, you know, continue the process forward, but, you know, as I always say, these are binary events in the end, right? You can't do a 50% acquisition. It's either a one or a zero. So we'll see.

Brad Bourne
President and CEO at FTG

But, you know, there are some opportunities, and I think we have some time available to really focus on them. For sure, you know, we have the balance sheet to be able to pull the trigger if we get to that point.

Nick Corcoran
Equity Research Analyst at Acumen Capital Partners

That's great color. Thanks for taking my questions.

Brad Bourne
President and CEO at FTG

Thanks.

Jamie Crichton
Jamie Crichton
CFO at Firan Technology Group Corporation

Thanks, thanks.

Operator

Thank you. As a reminder, if you wish to ask a question, please press star one. There are no further questions at this time. Mr. Bourne, please continue.

Brad Bourne
President and CEO at FTG

Okay. Thank you. A replay of the call will be available until Sunday, August eleventh, at the numbers shown on our press release. The replay will also be available on our website in a few days. I thank you all for your interest and participation. Thank you.

Executives
    • Jamie Crichton
      Jamie Crichton
      CFO
Analysts
    • Brad Bourne
      President and CEO at FTG
    • Nick Corcoran
      Equity Research Analyst at Acumen Capital Partners
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