Earnings call transcript: Zedcor Energy’s Q1 2025 revenue soars 87% YoY

Zedcor Energy reported robust financial results for Q1 2025, with a significant increase in both revenue and earnings per share (EPS). The company achieved an EPS of $0.01, surpassing the forecast of $0.00. Revenue reached $11.5 million, exceeding the forecasted $11.06 million. Following the earnings announcement, Zedcor’s stock surged by 9.63%, closing at $3.53, marking a positive market reaction. According to InvestingPro data, the company currently appears overvalued based on its Fair Value analysis, though it maintains impressive gross profit margins of 58.63% and a market capitalization of $262.53 million.

Key Takeaways

• Revenue increased by 87% year-over-year, reaching a record $11.5 million.
• EPS of $0.01 exceeded forecasts and marked a positive surprise for investors.
• Stock price rose by 9.63% in after-hours trading, reflecting strong investor confidence.
• The company maintained a high EBITDA margin of 36%.
• Zedcor is expanding its operational reach with 14 branches across North America.

Company Performance

Zedcor Energy demonstrated impressive growth in Q1 2025, with revenue and adjusted EBITDA hitting record levels. The company experienced an 87% year-over-year increase in revenue, driven by strong demand in the retail and residential construction sectors. The EBITDA margin remained robust at 36%, showcasing operational efficiency and effective cost management. Zedcor’s expansion into new markets and the addition of sales personnel have bolstered its competitive position.

Financial Highlights

• Revenue: $11.5 million, up 87% year-over-year
• Adjusted EBITDA: $4.1 million, up 116% year-over-year
• EBITDA margin: 36%
• Recurring revenue: Over 85% of total revenue

Earnings vs. Forecast

Zedcor Energy’s actual EPS of $0.01 surpassed the forecasted $0.00, marking a positive surprise for the market. The revenue of $11.5 million also exceeded the forecast of $11.06 million. This performance reflects the company’s strong operational execution and strategic market positioning.

Market Reaction

Following the earnings release, Zedcor’s stock price increased by 9.63%, closing at $3.53. This surge indicates strong investor confidence in the company’s growth trajectory and its ability to deliver on financial targets. The stock’s performance is notable given its 52-week range of $1.11 to $3.85. With a beta of 1.45 and an impressive one-year return of 157.6%, the stock has demonstrated significant momentum. Access the complete financial health analysis and detailed valuation metrics through InvestingPro’s comprehensive research report.

Outlook & Guidance

Looking ahead, Zedcor plans to maintain its growth momentum while keeping margins above 30%. The company aims to increase tower production to 40 units per week by August and is exploring potential large contracts with box stores. Zedcor is also focused on expanding its presence in the US and Canadian markets. Revenue is forecast to grow by 81% in the current fiscal year, according to InvestingPro data, while operating with a moderate debt-to-equity ratio of 0.89.

Executive Commentary

CEO Todd Zinniak highlighted the company’s ability to quickly absorb increased tower production, stating, "As quick as we can build the towers, obviously, we’ve done a great job in raising the capital." CFO Amin Lara emphasized the focus on maintaining margins, noting, "Our focus is gonna be growth while trying to keep an eye on the margins at all time."

Risks and Challenges

• Economic threats could impact demand in key sectors.
• Geographical pricing variations may affect profitability.
• Supply chain disruptions could hinder production targets.
• Competition in the security solutions market is intensifying.
• Expansion plans may strain operational resources.

Q&A

During the earnings call, analysts inquired about the company’s ability to sustain its growth and margin levels. Zedcor’s management expressed confidence in its strategic initiatives and highlighted the potential for organic expansion without the need for mergers and acquisitions. The Canadian market is expected to grow significantly in Q3, driven by increased security investments by homebuilders.

Full transcript - Zedcor Energy (ZDC) Q1 2025:

Joe Diaz, Conference Call Operator: Thank you for standing by. My name is Joe Diaz, and I will be the conference call operator. Welcome to the SECR Incorporated First Quarter of twenty twenty five Financial Results Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. We will be having a question and answer session at the end of the call and questions will be limited to analysts only.

I would now like to turn the conference over to Amin Lara, the Chief Financial Officer. Please go ahead.

Amin Lara, Chief Financial Officer, Zedcor: Thank you, Joe. Good morning, everyone. Thank you all for joining us today. Joining me on our call today, we have our Zedcor President and CEO, Todd Zinniak. Earlier last or later last night, before markets opened or after markets opened or after markets closed, Zedcor issued a news release announcing our first quarter financial results.

This news release will be available on our website and under the Investor Relations tab and as filed on our SEDAR profile. Please note that a portion of today’s call other than historical performance includes statements of forward looking information within the meaning of applicable securities law. These statements are made under the Safe Harbor provisions of those laws. Forward looking statements that are based on management’s current views and assumptions. This discussion is qualified in its entirety by the cautionary note regarding forward looking statements that is appended to our news release.

Please review our press release and Zedcor’s reports filed on our SEDAR plus for various factors that could cause actual results to differ materially from the projections. We use terms such as gross profit, gross margin and adjusted EBITDA on this conference call, which are non IFRS and non GAAP measures. More information on how we define these terms, please refer to the definitions set out in our management discussion and analysis. In addition, reconciliations between any adjusted EBITDA and net income is included in the MD and A. Important non GAAP measure that we use is adjusted EBITDA.

The company believes that adjusted EBITDA is a meaningful financial metric as it measures cash generated from operations, which the company can use to fund working capital requirements, fund future growth initiatives and service future interest and principal debt repayments. Adjusted EBITDA should not be construed as an alternative to net income determined in accordance with IFRS. Please note that all information is provided in Canadian dollars unless otherwise noted. Following the prepared remarks by Todd and I, we will conduct a Q and A session, during which questions will be taken from our analysts. Moving on to a review of our first quarter financial results.

We had record revenues of $11,500,000 in Q1 twenty twenty five. This exceeded our previous high set just last quarter by $1,200,000 and is an increase of 87% year over year. Our recurring revenue for Q1 twenty twenty five remained steady at over 85 percent of total revenue. We also had record adjusted EBITDA of $4,100,000 This was 116% increase year over year, and the EBITDA margin remained strong at over 36% for the quarter. Our tower count and customer base continues to grow across North America.

More importantly, our weekly tower production, which is a key metric for us, continues to increase. During Q1 twenty twenty five, our tower production count grew by two twenty nine towers, which was over 19 towers per week despite some slow holiday weeks and a slow start in January as our component suppliers restarted production after Christmas. We have met our previous goal of 20 to 25 towers produced per week and manufacture 30 to 35 towers per week with the ability to ramp up based on customer demand. This is a new slide we added in. It shows the twelve month highlights.

It’s something new, and we just wanted to talk about as a feel as we feel it highlights the team’s efforts and can show the growth trajectory given our rapid expansion. Revenue for the last twelve month period, 06/30/2024 to 03/31/2025 was $38,300,000 This compares to 24,600,000.0 for the period for the previous period. This was an increase of 56%. Last twelve month adjusted EBITDA increased to $14,200,000 or 37% of revenues versus 7,400,000.0 and thirty % of revenues for the previous LTM period. The revenue and adjusted EBITDA have increased, but we have also had some major accomplishments, including significant U.

S. Expansion and the shifting of the business away from major pipeline customers. Adjusted EBITDA worked out to $0.15 per share versus $0.10 per share over the same period despite a higher share count. The fleet the exit fleet count was fifteen sixty six towers at the quarter end. This was an increase of two twenty nine quarter over quarter.

In terms of the future outlook, we completed an equity raise in Q1 twenty twenty five and started to expedite our growth. We are aggressively expanding across the Southern U. S. And ramped up our sales team, While this will result in slightly lower margins as we expedite US growth, the revenue continues to grow, and we are already seeing this spending pay dividends as we gain traction in areas like Austin, Texas, Denver, Colorado, and Phoenix and Nevada. We are also going to invest in enterprise level sales growth and plan to assess the viability of fixed camera installations within our monitoring room being a differentiator in that market.

We continue to expand our revenues in the retail segment and the residential construction segments, both in Canada and The U. S. These two verticals are where we see large potential, and we will continue to allocate resources in order to grow our revenues in these verticals. We continue to grow our revenues with key customers and we as we expand our footprint and current customers are requesting services at more and more locations. As you can see from the chart, our current customer base is fully diversified by industry verticals.

And despite recent tariff and potential economic threats, we aren’t seeing a slowdown in demand or opportunity. Some of our customers, such as in the homebuilder segments, are even taking more security to protect fully built homes. Moving on to a discussion on the balance sheet. It’s really been set up to support our growth trajectory. We exited Q1 with a cash balance of $20,400,000 We have $10,000,000 of borrowing room on our current banking facility.

We have net cash of just over $1,000,000 after factoring in the $19,300,000 of total debt. Our net debt to LTM EBITDA is essentially zero. This will increase over time as we deploy capital, but we will be offset by growing EBITDA. Dollars 1,000,000 of the debt is expected to come due next quarter, and that will be retired from free cash flow. The PP and E balance increased on a net basis by almost $9,500,000 to $52,200,000 due to the continued investments in growing the company’s fleet of security towers.

A portion of that increase is sitting under assets under construction as we purchased a number of longer lead components in order to ramp up our growth and meet our production targets. We try to keep this around four to six weeks of production, but are managing AUC actively so that we aren’t tying up capital unnecessarily. A review of our cash flow statement for Q1 twenty twenty five. Adjusted operating cash flow increased 159% year over year to $3,600,000 demonstrating the growing cash flow generation capacity of the business. Capital expenditures ramped up in Q1 as well as our manufacturing capabilities are streamlined, and we have staffed up our team and established our processes.

Maintenance CapEx continues to represent a small portion of that total CapEx number. And during the quarter, we repaid $1,900,000 of debt and finance leases. I’ll now hand over the call to Todd, who will provide you with an operations update and some insights into our go forward strategy.

Todd Zinniak, President and CEO, Zedcor: Thanks, Ming. Great job. Good morning, everybody. As you saw from our numbers that we put out yesterday, we had another wonderful quarter, strong quarter. You know, thing that excites me the most is we maintained an EBITDA level of 35% plus with the growth that, you know, I’ll speak to it again.

I mean, you’ve heard me all all of you have heard me talk a lot about the platform. You know, as we expand our platform in The US and still in Canada, you know, it’s great how we’re managing our costs. To touch just on The US where we’re operating right now, Houston, Dallas, San Antonio, Austin, Denver, Las Vegas, Phoenix, and also in Tennessee. We have towers also in Washington, some going to South Carolina, North Carolina. So the platform is growing.

To build out the platform throughout q one, you know, and into the start of q two here, we’ve hired about 10 extra salespeople in The US and not just 10 in The US. It was seven. They’re about three more in Canada. The growth we’re seeing in Canada is very exciting. The brand is very strong.

You know, the internal growth in our customer list, a lot of you have heard me talk to that before. There’s huge opportunity just inside the customer base we have without even bringing on new clients. The US, obviously, is built up of a lot of new clients onboarding day after day, you know, several clients, some just in some one day, for example. To spin into the operations and sales across the company, Already touched on The US and Canada, the sales side. The admin staff means added some people there, you know, obviously into accounting, different sectors of that platform as well.

And like I said, you know, we’re pretty excited to see that we maintain these margins. You know, our management, right from the top to the bottom, does an unbelievable job of watching costs. You know, our eyes on that all the time. It’s also you’re gonna drive your revenue, but we gotta maintain our cost levels. And we’ve got a very dedicated team.

You know? Just to speak to Zedcor’s culture, you know, like, last night, we were here late. Everybody sits and talks about the business. Go for dinner, sit and talk about the business. Had a great opportunity yesterday.

Was ten to four. One of our operators from the monitoring center, he was in two hours early to, you know, just see how things are going with the day shift and get ready to start the shift at 06:00. And the reason I’m touching on that, it just shows the dedication of, you know, the whole team and our culture. And and, know, that’s what drives the number one one of our number one core values, which is service excellence. And, you know but to go deeper into the manufacturing side of the operations, we’re right now building 30 to 35 towers.

By the August, we’ll be at 40 towers. You know? And we’re seeing the demand is not stopping. For example, we’ve right now, we’re operating 14 branches. You know, you run some simple numbers, 10 towers per branch a month.

That’s a 40 towers a, you know, a month that’s required. And I don’t know if anybody read the press release, but there’s some Tony Ciarla, he’s moving on to be the director or sorry, president of corporate development. And what that’s gonna entail is Tony is gonna build out a national sales team and drive the bus on, you know, chasing the sales from the top. We’re quite excited to have Tony in that. Tony was a big part.

Well, he’s the main reason we got Home Depot to begin with, and and James is gonna be taking on operations for North America. Gives us a chance to, you know, focus on both sides. Right now, we do the sales from the field level, and now we’re obviously hitting it from boardrooms, and I’m quite excited about that operational change. You know, I think the biggest thing that we’re seeing with the towers right now is we’re gonna be on our goal. The 14 to 1,400 is not gonna be a problem for us to achieve.

We’re right on track. Since we opened up our manufacturing plant, we’ve built 860 towers as of yesterday. By the end of the week, we should be around, yeah, you know, close to that eight seventy five. And, obviously, 32 of next week, we’re at 900. We’re getting on the treadmill, keep adding that.

You know, we wanna get the business to a place we’ve been running so strong utilization. You know, 98, 90 five percent all the time, and towers going here, towers going there. The goal is to build up inventory and, you know, to be able to take on some of these bigger projects when it comes, and I think we’re doing a great job of managing that. We might as open it up for any questions. I mean, I’m sure there’s gonna be some good ones we can speak more to.

Sorry, Joe. Go ahead.

Joe Diaz, Conference Call Operator: Thank you, Todd. We will now take questions from analysts only. The first question comes from Kyle McPhee from Cormark Securities. Go ahead, Kyle.

Kyle McPhee, Analyst, Cormark Securities: Hi, everyone. Once again, great execution. So hats off to you and your team. First question from me on the relationship between the rate of fleet additions and utilization of your fleet. We’ve all been getting used to seeing Zedcor pump out more and more towers every quarter while keeping utilization rates very high.

The towers are just flying off the assembly line. And now you’re set to once again increase the rate of fleet additions. So I’m curious if you think Zedcor is getting close to inflection point where the towers don’t fly off the assembly line as quickly to get into the hands of clients. Is that a near term dynamic we should be aware of for utilization? Are you still very much in a spot where demand can quickly absorb whatever you get off the line over the next year or so?

Todd Zinniak, President and CEO, Zedcor: So I think, Kyle, great question. Thanks. You know, as quick as we can build the towers, obviously, you know, we’ve done a great job in, you know, raising the capital, and we’ve got the capital to move forward. You know, we’re streamlining the facility, the assembly plant all the time. We just did a little bit of a restructuring there actually last week and gives us the ability to forecast it.

You know, like, k. We can do six towers a day right now. No problem. We can go at 35. No problem.

What’s it gonna take to get 50? You know? Now we’ve got it. The that side of the business has matured to where we can see add four people, we can, you know, build fifty, sixty. And we’re doing a great job of procuring all of our suppliers, you know, the metal builders, that side of the business as well, all of our camera suppliers.

You know, we stay quite ahead of it. You know, now we’re starting to peel larger numbers. I mean, do you have wanna add anything?

Amin Lara, Chief Financial Officer, Zedcor: Yeah. I think some of it, we’re also trying to catch up to the demand. Like, all these branches are kinda sitting at a % or close to a % and don’t have a ton of, inventory sitting available to sell, and that kind of I don’t wanna say demotivates, but it doesn’t drive the salesperson necessarily. So some of it’s to catch up to the demand as well, Kyle.

Todd Zinniak, President and CEO, Zedcor: And, also, to talk a little more on that, Kyle, you know, I talk about the platform over and over. We’re out we’re about 14 branches, like I said, now. You know? And that’s where this plateaus a bit. You build out the platform.

Now we’re gonna feed the platform for a bit. We you we’re pausing opening up any other branches. I and when I say that, it doesn’t mean we won’t work in other states. We have different ways that we can move into a city without getting the facility set up and moving forward on that. You know, I think it’ll probably be q four realistically before we really look at taking on any more branches.

I think we gotta, you know, obviously get set up exactly what you said and ready for the demand that’s coming. It’s not stopping. I mean, obviously, like Tony, with the restructure we’re doing there, you know, Tony’s the what they’re gonna be chasing, those are long runway jobs. You know, we have quite a few trials right now with different box stores and stuff going on that I obviously not gonna get in and talk about. But, you know, one of those when these come to fruition, it’s it’s gonna put, you know, where we need more towers, and that’s what we’re setting up the company for right now is because we’ve built the platform.

The twelve, fourteen hundred towers, Kyle, is there to feed that the platform. Now we’ll execute when we need, you know, three, four hundred for one client. We’ll build a you know what mean? When you when we talk about that, the three, four hundred, or 200 for a client, none of these people expect you to drop those off the next morning. There’s logistic issues on their end, getting prepared, getting the store manager ready for the towers to come to them.

And we went through that with Home Depot Canada. And, you know, it takes time. It’s gonna be sitting down with them, making a schedule plan. K. We want you to produce 25, 30 a month for us, and then we’ll get these towers in place.

Kyle McPhee, Analyst, Cormark Securities: Got it. Okay. That’s that’s great color and and great to hear. Last one for me. Just on the economics you generate with different client types, you have lots of active discussions with small and large and very large clients.

Is there any reason to think that the return on capital or the margin profile you’re generating is already or will be much different across these client types? How is that dynamic shaping up at at this point in your company evolution?

Amin Lara, Chief Financial Officer, Zedcor: I think we’re looking generally for the margin to stay about the same. We’re gonna kind of offset some of the price discounts we might have to give with efficiencies based on scale. But it’s probably customer by customer, Kyle. And until we get into some of those contract discussions, it’s hard to say at this point. But

Todd Zinniak, President and CEO, Zedcor: And I think I’ll add to that. You know, Kyle, the other thing we’re doing a great job of is we’re bringing the cost of the tower down in, you know, month after month. And, you know, a lot of that’s driven too just from efficiencies in our, you know, in our production. You can all of a sudden build 35 towers a week with the same amount of people by changing their processes, tightening everything up. But, also, we’re seeing some of our vendors, you know, give us discounts.

So we’re looking at different things. We’ve, you know, all the tariff stuff you hear in the news and everything, we’ve locked in with our steel provider. The costs aren’t going up. Tariffs aren’t affecting him. So, you know, we’ve got a really good, you know, visual on where the cost of the tower is, and I truly believe that, you know, over the next few months, we may be able to get it down 10%.

And that obviously, at the end of the day, helps margins and and what you can do with pricing. To talk a little more about, you know, the pricing and the margin, it’s it’s fairly geographical as well. Kyle, for example, you know, Denver rates might be higher there compared to a different state, and we see that from state to state. So some places are a little more saturated than others. Some aren’t.

Right? So that’s a big component to it as well.

Kyle McPhee, Analyst, Cormark Securities: Okay. Appreciate all those answers. I’ll I’ll pass the line.

Todd Zinniak, President and CEO, Zedcor: Thanks, Kyle.

Joe Diaz, Conference Call Operator: Thank you, Kyle. The next question comes from Gabriel Long from BCom Securities. Go ahead, Gabriel.

Gabriel Long, Analyst, BCom Securities: Hey. Good morning, and thanks for taking my questions, and congrats on all the progress. I had a two part question for you. So, you know, obviously, the growth has been phenomenal over the last little while. I’m just curious.

How how are you guys thinking about your pace of growth now versus profitability? How are balancing that out now given the much bigger scale that you’re at right now? Are you thinking about sort of normalized EBITDA margins yet versus growth rates? That’s the first question. The second question would be, likewise, given the bigger scale, do you feel you’ve got the organizational structure to manage this pace of growth, or do you think you need to add, to the bench strength at this point?

Amin Lara, Chief Financial Officer, Zedcor: I’ll tackle the first one. I think our focus is gonna be growth while trying to keep an eye out on the margins at all time. Normalized margins, I think there’s a potential to expand those, and we kinda had discussion with our board yesterday as well when we were looking at the q one results. But, ultimately, the focus is gonna be on growth. We don’t we’re not gonna let the margins slip below 30%.

But if the opportunity is there to expand into major markets, we’re gonna take that opportunity while trying to keep the margins as high as we can. So it’s kind of a trade off. Totally get it. But the margins catch up pretty quick once we make that initial investment into a new region. The the longer lead items are kind of the strategic sales or the national sales that we talk about, but that’s not a huge cost initially.

Like, we could build that out slowly over time without impacting margins significantly. Todd, do wanna take the second half?

Todd Zinniak, President and CEO, Zedcor: Yeah. Sure. About bench strength, you know, Gabe, I think we’ve got great, bench strength, obviously. You know? And I lead that, and I gotta keep an eye on all that.

Well, executive team, unbelievable. All managers of every department, unbelievable. You know, these guys, lot, some of them have been with the company a long time. Some are new. The you know, even the new staff we see, it goes back to what I spoke to in, you know, in the first part of this call was our culture.

And, you know, these guys are an eight to five people where we all do what it takes in multiple hats. And, you know, I think we’ve come a long ways even on that, Gabe. When we were smaller, it was multiple hats hats. Sorry. Now we’re getting quite a bit better structure.

You know, we’ve got a great, great platform, how we’re building this out with the managers of the branches, the job they’re doing looking after, you know, their sales team, their people, their equipment. You know, it’s kinda copy and paste. And, you know, obviously, we’re gonna keep building out the bench strength when we think it’s needed. Right now, it’s you know, we’ve also, that I never mentioned on the call I forgot about was, you know, the service techs. And we we have to keep doing that to have service excellence.

In this industry, we hear quite often that the service isn’t there how it could be, and and we know that, you know, at the end of the day, we’ve got a great product. We’ve got great people, but we gotta supply our clients with great service. So that’s one thing we won’t let slip, and, you know, that’s maintaining the growth in the room. We’ve we’ve even changed that whole process, how that works. On The US side, our operation center is gonna be open there, like, where we do all our tower setups and configuring.

We’ve already got the team in place. We’ll probably be by the June live with that, the monitoring center, you know, into q three, q ’4. We’ve did so much streamlining in the monitoring side that, you know, we’ve got room here to let the growth keep going in Canada to do the monitoring until we truly actually need to move it down to The US and which we’re gonna do at you know, it’s a great sales feature, you know, and for anybody that’s new on the call, there again, one more thing that cuts said core apart. We’re not doing our monitoring overseas. Right?

It’s in house. Everybody’s an employee. There’s a lot that goes into that.

Gabriel Long, Analyst, BCom Securities: That’s awesome. No. Thanks for that. And just one more thing for me. Just in terms of further expansion in The US, Todd, I think you had talked about, you know, Explorer going into California and Florida, but it sounds like maybe some of that might be just pushed down until later this year.

And just on the expansion, are there opportunities to expand via acquiring local service providers or resellers versus sort of organically building out branches?

Todd Zinniak, President and CEO, Zedcor: No. We have other ways we go around it. You know, Gabe, we have ways that we can store towers. You know, you get a guy on the ground there without getting the building. We’ve done that quite often in new areas.

You know, for example, like I said, we have towers in Washington. We’ve got towers in Wisconsin, Illinois, and the Carolinas. We’ll we’ll have towers in Florida before we have buildings there. You wanna add to that, Amit?

Amin Lara, Chief Financial Officer, Zedcor: Yeah. I think on the m and a front, if that’s the question, Gabe, it’s tough right now. Like, people’s heads are in the clouds in terms of valuations. They have older equipment. It’d be mostly acquiring a customer list, and I don’t know if it’s a customer list we want.

They might be at lower rates. They might not be used to the higher level of service, which you have to pay for. So it’d be kind of on a case by case basis. We’ve looked at a few, nothing recently, but it wasn’t anything that was worth kinda pursuing beyond the initial, like, teaser stage, older equipment, older technology. We would have to revamp all that, and we we would have had to really assess if the people fit the culture as well that we’ve built here and maintained.

Gabriel Long, Analyst, BCom Securities: Gotcha, though. Thanks for that, and congrats again on the progress.

Todd Zinniak, President and CEO, Zedcor: Thanks, Gabe.

Joe Diaz, Conference Call Operator: Thank you, Gabriel. The following question comes from Sean Jack from Raymond James. Go ahead, Sean.

Amin Lara, Chief Financial Officer, Zedcor: I think he might be muted. Yeah. I think he might be having some technical difficulty. Hey. Oh, hey.

We can hear you now, John.

Sean Jack, Analyst, Raymond James: Okay. Awesome. So, obviously, there’s been a lot of expansion into new cities recently. How much of the growth are you guys getting feedback?

Amin Lara, Chief Financial Officer, Zedcor: A little bit, but we can still make you out. Okay.

Sean Jack, Analyst, Raymond James: Sorry. How much of the growth into the new areas has been directly encouraged by existing customers versus, just more greenfield expansion?

Todd Zinniak, President and CEO, Zedcor: I’d say probably 10 to 15%, maybe up to 20% existing customers, and then it’s a lot of it’s us setting up, you know, getting the flag in the ground and let’s go, right, and chase the work. And, you know, I’d say that’s probably pretty reasonable, that 20%. Yeah. Some of it’s regions or more. That’s the reason we went there a %.

And then, you know, we one thing we’re learning, this works everywhere. So

Amin Lara, Chief Financial Officer, Zedcor: And some of it’s driven by proximity or the availability of good people. Like, Phoenix was more of a a greenfield expansion, and that guy knew people in other locations and referred them. And we felt they’d be good hires, so we kind of took the leap. Like Todd said, we know it works everywhere. So if a good person comes along and we feel the the investment’s worthy and we feel we could service it and maintain the service levels, that’s how kind of Vegas got started.

We knew there was demand there. We weren’t ready to go there, but we found the right guy, and that kind of expedited the expansion and the proximity between Phoenix and Las Vegas. Some of the the Phoenix sales were being made in Las Vegas. We said, let’s hire the guy and kind of focus it and really push that expansion as well.

Sean Jack, Analyst, Raymond James: Okay. Perfect. Another question for me. Just thinking about you know, there’s in these past two quarters, have been a little bit more commentary specifically on the growth in Canada. Obviously, The United States is gonna be the main, driver, it sounds like.

But wondering if we should expect, you know, kind of the the ongoing trend from these past two quarters of, you know, call it 30 to 40 towers per quarter. Is that reasonable moving forward, or should we expect that to increase?

Amin Lara, Chief Financial Officer, Zedcor: For Canada? Yeah. For Canada, we have an increasing

Todd Zinniak, President and CEO, Zedcor: No. It’s it’s gonna be increasing, Sean. For example, we just sent 40 towers here in the last two weeks. You know? Growth was slowed in q one due to some permitting stuff out east in Toronto, projects getting delayed, weather here in Western Canada, you know, in Calgary and Edmonton.

We had quite a cold winter. Some stuff got delayed there. It’s their Canada right now is, like, 99.9% utilized. Moving towers around to make jobs happen, trucks are hauling towers here as we speak from the factory. I think you’re gonna see it come on a lot stronger, you know, probably into q three here, opening a branch out east, another one.

It’s gonna be exciting for the Ontario side of things. Ontario’s back. It’s rocking and rolling. It’s awesome. I think the growth here we had about, 30% growth is what we thought around that 300 tower number.

I think we’re gonna have no problem beating that for the Canadian side of the business.

Sean Jack, Analyst, Raymond James: Okay. Perfect. Yeah. No. That’s, that’s all great color.

That’s all for me.

Todd Zinniak, President and CEO, Zedcor: Thanks. Thanks, Sean.

Amin Lara, Chief Financial Officer, Zedcor: Excellent. I think that wraps up all our questions. Thank you everybody for jumping on, and have a good day.

Todd Zinniak, President and CEO, Zedcor: Have a great day. Thank you, everyone.

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