Research Frontiers Inc. (NASDAQ:REFR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 04:30 pm ET


Research Frontiers Inc. (NASDAQ:REFR) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen. Welcome to Research Frontiers' Investor Conference Call to Discuss the Third Quarter of 2019 Results and Recent Developments. [Operator Instructions] This conference is being recorded today. A replay of this conference call will be available starting later today in the Investors section of Research Frontiers' websites at and will be available for the next 90 days.

Please note that some of the comments made today may contain forward-looking information. The words expect, anticipate, plans, forecasts or similar expressions are intended to identify forward-looking statements. Statements that are not historical facts are forward-looking statements that are made pursuant to the Safe Harbor provisions that are part of the Securities Litigation Reform Act of 1995. These statements reflect the Company's current beliefs and a number of important factors could cause actual results for future periods to differ materially from those expressed. Significant factors that could cause results to differ from those anticipated are described in our filings with the SEC. Research Frontiers undertakes no obligation to update or revise these forward-looking statements to reflect new events or uncertainties.

The Company will be answering many of the questions that were e-mailed to it prior to this conference call either in their presentation or as part of the Q&A session at the end. In some cases, the Company has responded directly to e-mail questions prior to this call or will do so afterwards in order to answer more questions of general interest to shareholders on this call. [Operator Instructions] Also, we ask that you keep your questions brief in the interest of time.

I would now like to turn the conference over to Joe Harary, President and Chief Executive Officer of Research Frontiers. Please go ahead, sir.

Joe Harary

Thank you, Erica, and good afternoon, everyone, and thanks for being here. Joining me today is Seth Van Voorhees, our CFO.

To summarize our third quarter 2019 results, fee income was up 29% from the third quarter of last year. When we compare the operations in our top two major markets, fee income in automotive was up 49% in the third quarter of this year as compared to last year. In aircraft, fee income was up 28% as compared to last year.

Moving to sequential quarterly revenue growth. If we compare the third quarter of this year to the previous second quarter of this year, the revenue growth is even larger. Overall, fee income in the third quarter of 2019 was up 54% from the second quarter of this year. Fee income from automotive was up 73% in the third quarter compared to the previous quarter. All of this came from increases from both Mercedes and McLaren. Fee income from aircraft was up 27% in the third quarter.

We judge our performance in three main areas: financial stability, operational efficiency and business growth. We achieved positive results in all three of these areas this year. Let's start with financial stability. As of the end of the second quarter we had $7 million