Alright so here it is: Greetings All: Questi
Post# of 22940
Posted On: 09/07/2016 3:14:22 PM
Alright so here it is:
Greetings All: Questions received after the conference call has been grouped with responses supplied below.
1. Q: Dan asks: Will there be a CONFERENCE CALL RECORDING available for all 'TPAC' shareholders to listen to?
A: Yes. It will be posted on the TPAC website. Notification will be sent when it has been posted.
2. Q: Emile asks: The Company’s/buyers and sellers who are approaching EIA how big are these companies? And is it every time the same company or different ones. A: In exporting, the companies range small to large. From day-to-day they are mostly new customers; however in the agric to mineral you will see repeat customers year to year.
3. Q: Scott Asks: Is there any guidance yet on income projections for 2016-17 as far as Export/Import division? Or is it too early to project $$ for this rapidly growing business? A: This service is new therefore estimates have not surfaced, however since export deals in general are large the company has been preparing to capture a substantial size deal with a decent target profit.
4. Q: Tim asks: Please update on the EIA deal that was announced 8/28/16 @ tpacmuse that offered a fee waiver if response was receive within 72 hours. A: CEO Bill McKay reports China buyers offered an additional finder’s fee up to 65cent to find a gold seller with a discount above 10 percent, EIA waived the fee for a direct chance of getting the China Buyer Business, still waiting for a response from the CB, EIA finds a possible seller willing to provide a 15 percent discount, EIA will try to negotiate a higher Revenue Target
5. Q: Tim, Joe, GL asks: Please tell me the name of the analytical tool/software you mentioned that would help me look deeper than PPS and is used at IR.
A: Market Trend is a great tool & Market signal, However most are from financial software
6. Q: Green Thumb asks: iHub posters are calling Mr. McKay a liar. How is TPAC currently countering these accusations?
A: TPAC team members do not direct any resources to reading iHub postings (except when a shareholder has forwarded it to the attention with a question) since they have no influence on deal structures in TPAC business dealings. TPAC teams are active in raising the core vale of TPAC -- the company. They are not stock sensitive. If the company’s core rises, the stock raises.
Q: Green Thumb asks: Is TPAC waiting to incur damages to the company and stock holders from stock manipulators first before the countermeasures is in place?
A: No. TPACs core teams are focused on increasing core value figures. This cannot be manipulated. This is needed for the shareholders to have stability. Someone is always going to try to manipulate the mpps at this level of the game. Better you place your resources to moving up.
7. Q: Green Thumb asks: CONTRACTUAL INFORMATION Please elaborate in detail what shareholders should expect to happen and who initiates what.
A: Due to scenarios like Timken and BTL, TPAC will design an improved system for delivering transparency for contractual information. Will keep you apprised
8. Q: Green Thumb asks: Is there still a plan to go to NASDAQ?
A: A better way to put this is that NASDAQ is a goal. However to do so, the core value of the company needs to be raised -- so let’s all focus on that for right now
9. Q: Green Thumb asks: Will there be share buyback for 2017?
A: TPAC is looking to create a Share Reduction Program for 2017. A reverse split is what the company wants to avoid. A Buy Back is what the company is designing the program to do.
10.Q: Green Thumb asks: Will TPAC avoid reverse split to uplist to OTCQB or NASDAQ?
A: The program at this time does not call for a reverse split.
11. Q: Silvana asks: Is Tran’s pacific Aerospace current or not? There is several posts on IHUB that keep saying the Company is in Default.
A: Correct -- TPAC is in default. Just an oversight while CEO Bill McKay was in China. The default will be taken care of and IR will notify and post on the TPAC website when it is complete.
12. Q: Ray asks: With the implementation of the new business plan TPAC’s Vision and Mission as well as Objectives and Goals have grown significantly. Are there sufficient managerial resources currently assigned to implement the aggressive strategy now envisioned? Has the Vision become too ambitious and multifaceted?
A: You know it is funny, everyone thinks that the functions have been increased -- they actually haven’t. Manufacturing and exporting materials to China has been here. These features have been enhanced and indeed there are now enough people to handle the internal management.
13.Q: Ray asks: TPAC’s CEO, Mr. Bill McKay is the visionary behind TPAC and is crucial to the success of the company. Has TPAC purchased “Key Man” insurance to cover the unlikely, but potentially catastrophic scenario that he becomes incapacitated?
A: Here is a question whose answer is unknown. Thank you for bringing it to our attention. It will be asked on your behalf and reported back.
14. Q: David asks: Can you comment on any of the specifics of what the other board members are involved with?
A: IR does not have any direct information on the functionaries of the board at this time.
15. Q: Kevin asks: How many employees does TPAC currently have? How many in the Import/Export division as well as the bearing production division? Associated labor costs? Any elaboration on the day-to-day mechanics of the business is appreciated. A: Well TPAC doesn’t manufacture the bearing, BTL does and they have more than 100 people. TPAC has 5 internals, the EIA team is made of 17 consultants and IR is about 6 people.
16. Q: Kevin asks: Will there be additional revenue listed on the upcoming 10Q (in addition to the $75K listed in timeline)?
A: It cannot be confirmed at this time. TPAC will need to complete it facility move before any additional invoicing can begin.
17. Q: Kevin asks: When will shareholders be able to hear from Mr. McKay directly?
A: The CEO will be handling the events directly. Base information and Q&A is tasked to IR Manager James.
18. Q: Dima: Seems like Trans-Pacific now has several different revenue-generating services, programs and/or products. Can you tell us exactly how many there are and explain each one and how it works as well as the Anticipated growth from each?
A: Let’s start with this: TPAC has two business service lines: (1) Licensing Agreements for TPAC technology and Service Level Agreements for creating NAVAIR certified facilities and products. (2) Export Import Assurance service geared to China importing.
19. Q: Dima asks: Had Mr. McKay expected this type of expansion even before the 'reconstructed' business plan or has much of it developed only this year, since April?
A: CEO Bill McKay was looking for a strong growth factor; several key moves in April offered him the footing to make a big leap.
20. Q: Dima asks: Are the projections in the business plan conservative and more assured to materialize? How definitive is the timeline?
A: The projections are conservative; but are solely based on the BTL 10 year contract, there is some adjustments in that estimate do to the new request for metal works. TPAC is making sure there are no fillers. TPAC is looking to raise the core value. Most investors are still thinking stock pps -- this is not the case. This may shock the investors but it is company then stock.
21. Q: Dima asks: Is up listing to a higher exchange inevitable and any timeline for that? Any idea you can share of how you propose to accomplish an up list?
A: TPAC is focused on raising core value. This will be a trigger. You will have to keep your eyes peeled on the core value.
22.Q: Rick asks: The timeline on page 6 mentions milestones for 2016 and 2017. Are these fiscal periods or calendar? What is starting month of TPAC’s fiscal year? A: November 1 to October 31 is TPAC fiscal. The report was based on calendar for the FGM
23.Q: Rick asks: Can MRVB activities be used to counteract negative pressure on PPS by market makers trying to manipulate the stock? A: Raising core value and using a MRVB system to expand the IPPS will act as a stabilizing factor.
24.Q: Rick asks: Will stockholders know what assets are held by the MRVB?
A: The MRVB intends to be broadcasted daily Sunday through Thursday.
25. Q: Alex asks: At this PPS what are the risks in investing in TPAC? In percentage what is the likelihood TPAC becomes that 1 one in many that actually make it out of the Pink stocks manipulation game. Please explain why.
A: The risk is the same as any stock on the market. You can lose your investment. As for the stock rising from Pink manipulation-- there is a very good chance this stock leaves the pink altogether; the stock being on the OTCQB at one time shows that. Remember the teams here are not looking for stock price; they are looking at core value of the company. Let’s use the proper view -- how things work. Too many investors are narrowed in on PPS
26. Q: Carson aks: WRT to TPAC as an import/exporter - what proprietary "entity" does TPAC have that makes them an attractive alternative to established enterprises to facilitate multi million/billion $ import deals? Please answer in laymen terms as I just can not understand how they have the resources (financial or intellectual) to be an attractive alternative to well established enterprises that specialize in this type of commerce. I understand the bearing/manufacturing side but just can not "make sense" of this side of the business.
A: First answer – None. Export deals are large in nature due to shipping and price per metric ton; 12,500MT/month of sugar at $400 USD is $5M USD x 12=$60M USD. This is a standard contract -- it has nothing to do with Mr. McKay. However if it is being shipped to China, well Mr. McKay might be the most important part of the plan -- his knowledge of China, the people and the ports customs become highly valuable to an external importer. That’s the Power of TPAC’s EIA. Mr. McKay has been moving products through the system for years.
27.Q: Carson asks: At what PPS does it become unattractive to buy back shares? Obviously open ended but is relative to target OS and how quickly company can execute before PPS "runs away." Obviously if PPS increases beyond the point whete it is attractive (WRT to cash flow) shareholders will still "win.
A: TPAC is not really working at a PPS mind set. What is happening is a return to strong fundamentals -- core company value raises the company core worth. That is where it’s going. The O/S is looked at in terms of dollars.
28.Q: Carson asks: What is new timeline for EXiM decision WRT to taking $10MM vs holding out for $85MM? At some point - law of dimishing returns applies WRT to execution of biz plan.
A: There is no time line. TPAC has many options in 2017 and it will take the best one to move the core value
29. Q: Carson asks: Completely open ended - how does $TPAC / IR expect to directly influnce PPS to get it to $0.01 EOY 2016? I have never asked about PPS predictions as they are market dependent. Short of buyback (not scheduled for 2017), how does company "influence " PPS without directly intervening on demand/supply equation? Results and execution are a big part but that does not mean market will respond. Significant overhang to overcome to get to $0.01. How does company expect to get 10x + escalation in PPS short of direct intervention?
A: It won’t be IR that does it. It will be the team of business and financial officers being selective of business contracts that offer them the revenue for retained earnings to lift the core. Core stabilization matched with events influences new shareholders and alike,
30.Q: Matt asks: Good afternoon, I was unable to listen to the conference call and was wondering if a recording would be posted online? A: Indeed and IR will let you know when it is up and running
BTL RELATIONSHIP
TPAC intends to co-locate its machinery & equipment at the BTL plant.
1. Q: Has the relocation been completed?
A: Relocation starts in September. This information is provided in the Business Timeline.
2. Q: Can you please describe what involvement TPAC (personnel, equipment, other?) will have in the manufacturing process performed in the BTL plant?
A: The equipment will be used to complete the bearing process. Remember BTL only made a part of the sub-assembly. Now with all the equipment in one place -- final product construction takes place.
3. Q: TPAC procured millions of dollars in bearing equipment related 'requests for quotes' in the past two-three months. Investors were told these requests were forwarded to BTL for estimate work-ups. Have any of those quotes turned into orders for BTL and if so how many and to what approximate dollar amount of revenue?
A: BTL and TPAC Australia are separate business entities from TPAC so their revenues and actual dealings are not a part of its reporting scheme. However as the raw material and machinery inputs increase, then IR shall be able to report on that as it happens.
MONUMENTAL NEWS
On July 22nd, Alex Singh asked MUSE "Do you expect to have monumental news by end of year to get us out of this PPS rut?" @TPAC Bearings responded "Yes, Prior to the end of 2016".
Q: Can you say now what that news is? If not, can you explain what the nature of the monumental news is? Our investor group (+100,000,000 million shares) is interested to know more details but we don't want to create a competitive disadvantage for TPAC if the revelation will be harmful to TPAC...just would like to know what you can tell us on this specific topic.
A: No. IR would not at this time. As you know the MPPS is being manipulated and the Shareholders are concerned so IR won’t add to it by broadcasting news before it is necessary.
EXPORT IMPORT ASSURANCE DIVISION
Per the new business plan/timeline, it is obvious the EIA division anticipates earning the majority of TPAC's revenues into the future. As shareholders, we would like to know:
Q: Where did TPAC acquire the product expertise to vet the quality and quantity of commodities being imported into China? Is this assurance activity being outsourced or these TPAC employees?
A: TPACs consultant base is made up of commodity and currency traders.
Q: What strategic advantage does TPAC provide market participants that they can't get get from existing assurance companies already established in China?
A: There are no assurance companies in China -- just brokers and standard export import companies. TPAC is providing a service that can ride on top of an export company
CONFERENCE CALL QUESTIONS (from single shareholder)
I have been invested in TPAC for 2.5 years and love what the company is doing; however, I am somewhat puzzled by the revenue projections for 2017 disclosed in the timeline. Revenue is projected at 25.4M in 2017. This does not seem to me to agree with some of the information given out by TPAC in the last 1-2 weeks as follows:
Q: In an IR email on 8/15 the following was stated: "TPAC's Export Division provides expert negotiations with new global buyers for commodities from Metal Works, Oil, Lithium, Non-GMO foods, and Gold ..... TPAC sees new contractual revenue above $100M through 2017 (forward expectations)". This projection is far in excess above the Timeline projection.
A: At the beginning of the call, it was reported that the projected figures did not include any revenue from BTL business, TPAC AU business or any EIA service. This was just based on BTL contract and some additional equipment that TPAC will provide and increase as well as types of metal work.
Q: In a Twitlonger narrative on August 23 it was stated that "Exports will surpass the bearing business in 2017. More than 50 percent of TPACs revenue will be based on its EIA services, up to 10 percent on Licensing Agreements, and up to 40 percent on direct sales of bearings as a prime distributor." We know that next year TPAC has the BTL SLA and license agreement locked up for a total of $14.5M and the TPAC Australia license agreement for $1M. This total of $15.5M in 2017 is more than 60% of the projected revenue of $25.4M, yet it was stated that next year only up to 10% of revenue would be from licensing agreements. These numbers are contradictory. Furthermore, if revenue is $25.4M in 2017 and more than 60% is from the bearing business (licensing agreements), then export revenue will not surpass the bearing business revenue in 2017, contrary to what was previously stated.
A: First -- no EIA data is in the timeline however EIA projects are three times higher in gross volumes than the standard BTL contract -- for instance -- if by year end oil was sold at 2M barrels at $40.00 USD per barrel, TPACs gross would be $80M USD with adjusted net at 10 cent/barrel -- 2,400,000 that is just one deal against the BTL contract. If it was gold at $250.00 USD target per kg on an annual contract on 2T per month, BTL would be surpassed easy. Now these scenarios are in negotiations as these questions are being answered however since the EIA contracts are not in place the figures were not reported.
Q: It has been reported that TPAC had RFQs in July of about $200M. It was also stated that export potential is $10B and that the export opportunities for TPAC are truly phenomenal. Then there are the potential relationships with Boeing and AVIC and the SLA with TPAC Australia.
My main point in bringing all of this up is that based on this information that was previously given out by TPAC before the Timeline came out it appears to me that 2017 projected revenue in the Timeline has been significantly understated, and therefore, Net Income has also been understated.
A: You are correct we didn’t report but, what is signed sealed and delivered.
Q: I would appreciate it if you could address the discrepancies in these numbers. I am an avid reader of the Investor's Hangout chat board and have not seen any other shareholder question the revenue projections as being understated. I think this topic is very important for all shareholders on the conference call to hear. The challenge is to get the Shareholder use to a different way to build a stable TPAC,
A: First let’s make sure we set the base, first it is the company then stock, There is no discrepancies in the numbers. TPAC holds it course on being conservative. Providing FGM based on actual then speculated. We choose to report on the bird in hand, not the ones in the bush. The TPAC team is here to bring internal value to the core of TPAC. Stay focus on the core.
Q: One additional question: Why did the Timeline not address direct sales
A: It did address direct sales. TPAC is a service supplier therefore its direct sales was the license agreement and service level agreement.
That was TPACs direct sales. TPAC has made a 10 year sale with BTL and looking to complete the same with TPAC AU. TPAC wants new LA’s & SLA’s -- that’s it. When Boeing completes it vendor overhaul, TPAC goal is to be in a position to Prime with certified China manufactures managed by Trans Pacific Aerospace.
Greetings All: Questions received after the conference call has been grouped with responses supplied below.
1. Q: Dan asks: Will there be a CONFERENCE CALL RECORDING available for all 'TPAC' shareholders to listen to?
A: Yes. It will be posted on the TPAC website. Notification will be sent when it has been posted.
2. Q: Emile asks: The Company’s/buyers and sellers who are approaching EIA how big are these companies? And is it every time the same company or different ones. A: In exporting, the companies range small to large. From day-to-day they are mostly new customers; however in the agric to mineral you will see repeat customers year to year.
3. Q: Scott Asks: Is there any guidance yet on income projections for 2016-17 as far as Export/Import division? Or is it too early to project $$ for this rapidly growing business? A: This service is new therefore estimates have not surfaced, however since export deals in general are large the company has been preparing to capture a substantial size deal with a decent target profit.
4. Q: Tim asks: Please update on the EIA deal that was announced 8/28/16 @ tpacmuse that offered a fee waiver if response was receive within 72 hours. A: CEO Bill McKay reports China buyers offered an additional finder’s fee up to 65cent to find a gold seller with a discount above 10 percent, EIA waived the fee for a direct chance of getting the China Buyer Business, still waiting for a response from the CB, EIA finds a possible seller willing to provide a 15 percent discount, EIA will try to negotiate a higher Revenue Target
5. Q: Tim, Joe, GL asks: Please tell me the name of the analytical tool/software you mentioned that would help me look deeper than PPS and is used at IR.
A: Market Trend is a great tool & Market signal, However most are from financial software
6. Q: Green Thumb asks: iHub posters are calling Mr. McKay a liar. How is TPAC currently countering these accusations?
A: TPAC team members do not direct any resources to reading iHub postings (except when a shareholder has forwarded it to the attention with a question) since they have no influence on deal structures in TPAC business dealings. TPAC teams are active in raising the core vale of TPAC -- the company. They are not stock sensitive. If the company’s core rises, the stock raises.
Q: Green Thumb asks: Is TPAC waiting to incur damages to the company and stock holders from stock manipulators first before the countermeasures is in place?
A: No. TPACs core teams are focused on increasing core value figures. This cannot be manipulated. This is needed for the shareholders to have stability. Someone is always going to try to manipulate the mpps at this level of the game. Better you place your resources to moving up.
7. Q: Green Thumb asks: CONTRACTUAL INFORMATION Please elaborate in detail what shareholders should expect to happen and who initiates what.
A: Due to scenarios like Timken and BTL, TPAC will design an improved system for delivering transparency for contractual information. Will keep you apprised
8. Q: Green Thumb asks: Is there still a plan to go to NASDAQ?
A: A better way to put this is that NASDAQ is a goal. However to do so, the core value of the company needs to be raised -- so let’s all focus on that for right now
9. Q: Green Thumb asks: Will there be share buyback for 2017?
A: TPAC is looking to create a Share Reduction Program for 2017. A reverse split is what the company wants to avoid. A Buy Back is what the company is designing the program to do.
10.Q: Green Thumb asks: Will TPAC avoid reverse split to uplist to OTCQB or NASDAQ?
A: The program at this time does not call for a reverse split.
11. Q: Silvana asks: Is Tran’s pacific Aerospace current or not? There is several posts on IHUB that keep saying the Company is in Default.
A: Correct -- TPAC is in default. Just an oversight while CEO Bill McKay was in China. The default will be taken care of and IR will notify and post on the TPAC website when it is complete.
12. Q: Ray asks: With the implementation of the new business plan TPAC’s Vision and Mission as well as Objectives and Goals have grown significantly. Are there sufficient managerial resources currently assigned to implement the aggressive strategy now envisioned? Has the Vision become too ambitious and multifaceted?
A: You know it is funny, everyone thinks that the functions have been increased -- they actually haven’t. Manufacturing and exporting materials to China has been here. These features have been enhanced and indeed there are now enough people to handle the internal management.
13.Q: Ray asks: TPAC’s CEO, Mr. Bill McKay is the visionary behind TPAC and is crucial to the success of the company. Has TPAC purchased “Key Man” insurance to cover the unlikely, but potentially catastrophic scenario that he becomes incapacitated?
A: Here is a question whose answer is unknown. Thank you for bringing it to our attention. It will be asked on your behalf and reported back.
14. Q: David asks: Can you comment on any of the specifics of what the other board members are involved with?
A: IR does not have any direct information on the functionaries of the board at this time.
15. Q: Kevin asks: How many employees does TPAC currently have? How many in the Import/Export division as well as the bearing production division? Associated labor costs? Any elaboration on the day-to-day mechanics of the business is appreciated. A: Well TPAC doesn’t manufacture the bearing, BTL does and they have more than 100 people. TPAC has 5 internals, the EIA team is made of 17 consultants and IR is about 6 people.
16. Q: Kevin asks: Will there be additional revenue listed on the upcoming 10Q (in addition to the $75K listed in timeline)?
A: It cannot be confirmed at this time. TPAC will need to complete it facility move before any additional invoicing can begin.
17. Q: Kevin asks: When will shareholders be able to hear from Mr. McKay directly?
A: The CEO will be handling the events directly. Base information and Q&A is tasked to IR Manager James.
18. Q: Dima: Seems like Trans-Pacific now has several different revenue-generating services, programs and/or products. Can you tell us exactly how many there are and explain each one and how it works as well as the Anticipated growth from each?
A: Let’s start with this: TPAC has two business service lines: (1) Licensing Agreements for TPAC technology and Service Level Agreements for creating NAVAIR certified facilities and products. (2) Export Import Assurance service geared to China importing.
19. Q: Dima asks: Had Mr. McKay expected this type of expansion even before the 'reconstructed' business plan or has much of it developed only this year, since April?
A: CEO Bill McKay was looking for a strong growth factor; several key moves in April offered him the footing to make a big leap.
20. Q: Dima asks: Are the projections in the business plan conservative and more assured to materialize? How definitive is the timeline?
A: The projections are conservative; but are solely based on the BTL 10 year contract, there is some adjustments in that estimate do to the new request for metal works. TPAC is making sure there are no fillers. TPAC is looking to raise the core value. Most investors are still thinking stock pps -- this is not the case. This may shock the investors but it is company then stock.
21. Q: Dima asks: Is up listing to a higher exchange inevitable and any timeline for that? Any idea you can share of how you propose to accomplish an up list?
A: TPAC is focused on raising core value. This will be a trigger. You will have to keep your eyes peeled on the core value.
22.Q: Rick asks: The timeline on page 6 mentions milestones for 2016 and 2017. Are these fiscal periods or calendar? What is starting month of TPAC’s fiscal year? A: November 1 to October 31 is TPAC fiscal. The report was based on calendar for the FGM
23.Q: Rick asks: Can MRVB activities be used to counteract negative pressure on PPS by market makers trying to manipulate the stock? A: Raising core value and using a MRVB system to expand the IPPS will act as a stabilizing factor.
24.Q: Rick asks: Will stockholders know what assets are held by the MRVB?
A: The MRVB intends to be broadcasted daily Sunday through Thursday.
25. Q: Alex asks: At this PPS what are the risks in investing in TPAC? In percentage what is the likelihood TPAC becomes that 1 one in many that actually make it out of the Pink stocks manipulation game. Please explain why.
A: The risk is the same as any stock on the market. You can lose your investment. As for the stock rising from Pink manipulation-- there is a very good chance this stock leaves the pink altogether; the stock being on the OTCQB at one time shows that. Remember the teams here are not looking for stock price; they are looking at core value of the company. Let’s use the proper view -- how things work. Too many investors are narrowed in on PPS
26. Q: Carson aks: WRT to TPAC as an import/exporter - what proprietary "entity" does TPAC have that makes them an attractive alternative to established enterprises to facilitate multi million/billion $ import deals? Please answer in laymen terms as I just can not understand how they have the resources (financial or intellectual) to be an attractive alternative to well established enterprises that specialize in this type of commerce. I understand the bearing/manufacturing side but just can not "make sense" of this side of the business.
A: First answer – None. Export deals are large in nature due to shipping and price per metric ton; 12,500MT/month of sugar at $400 USD is $5M USD x 12=$60M USD. This is a standard contract -- it has nothing to do with Mr. McKay. However if it is being shipped to China, well Mr. McKay might be the most important part of the plan -- his knowledge of China, the people and the ports customs become highly valuable to an external importer. That’s the Power of TPAC’s EIA. Mr. McKay has been moving products through the system for years.
27.Q: Carson asks: At what PPS does it become unattractive to buy back shares? Obviously open ended but is relative to target OS and how quickly company can execute before PPS "runs away." Obviously if PPS increases beyond the point whete it is attractive (WRT to cash flow) shareholders will still "win.
A: TPAC is not really working at a PPS mind set. What is happening is a return to strong fundamentals -- core company value raises the company core worth. That is where it’s going. The O/S is looked at in terms of dollars.
28.Q: Carson asks: What is new timeline for EXiM decision WRT to taking $10MM vs holding out for $85MM? At some point - law of dimishing returns applies WRT to execution of biz plan.
A: There is no time line. TPAC has many options in 2017 and it will take the best one to move the core value
29. Q: Carson asks: Completely open ended - how does $TPAC / IR expect to directly influnce PPS to get it to $0.01 EOY 2016? I have never asked about PPS predictions as they are market dependent. Short of buyback (not scheduled for 2017), how does company "influence " PPS without directly intervening on demand/supply equation? Results and execution are a big part but that does not mean market will respond. Significant overhang to overcome to get to $0.01. How does company expect to get 10x + escalation in PPS short of direct intervention?
A: It won’t be IR that does it. It will be the team of business and financial officers being selective of business contracts that offer them the revenue for retained earnings to lift the core. Core stabilization matched with events influences new shareholders and alike,
30.Q: Matt asks: Good afternoon, I was unable to listen to the conference call and was wondering if a recording would be posted online? A: Indeed and IR will let you know when it is up and running
BTL RELATIONSHIP
TPAC intends to co-locate its machinery & equipment at the BTL plant.
1. Q: Has the relocation been completed?
A: Relocation starts in September. This information is provided in the Business Timeline.
2. Q: Can you please describe what involvement TPAC (personnel, equipment, other?) will have in the manufacturing process performed in the BTL plant?
A: The equipment will be used to complete the bearing process. Remember BTL only made a part of the sub-assembly. Now with all the equipment in one place -- final product construction takes place.
3. Q: TPAC procured millions of dollars in bearing equipment related 'requests for quotes' in the past two-three months. Investors were told these requests were forwarded to BTL for estimate work-ups. Have any of those quotes turned into orders for BTL and if so how many and to what approximate dollar amount of revenue?
A: BTL and TPAC Australia are separate business entities from TPAC so their revenues and actual dealings are not a part of its reporting scheme. However as the raw material and machinery inputs increase, then IR shall be able to report on that as it happens.
MONUMENTAL NEWS
On July 22nd, Alex Singh asked MUSE "Do you expect to have monumental news by end of year to get us out of this PPS rut?" @TPAC Bearings responded "Yes, Prior to the end of 2016".
Q: Can you say now what that news is? If not, can you explain what the nature of the monumental news is? Our investor group (+100,000,000 million shares) is interested to know more details but we don't want to create a competitive disadvantage for TPAC if the revelation will be harmful to TPAC...just would like to know what you can tell us on this specific topic.
A: No. IR would not at this time. As you know the MPPS is being manipulated and the Shareholders are concerned so IR won’t add to it by broadcasting news before it is necessary.
EXPORT IMPORT ASSURANCE DIVISION
Per the new business plan/timeline, it is obvious the EIA division anticipates earning the majority of TPAC's revenues into the future. As shareholders, we would like to know:
Q: Where did TPAC acquire the product expertise to vet the quality and quantity of commodities being imported into China? Is this assurance activity being outsourced or these TPAC employees?
A: TPACs consultant base is made up of commodity and currency traders.
Q: What strategic advantage does TPAC provide market participants that they can't get get from existing assurance companies already established in China?
A: There are no assurance companies in China -- just brokers and standard export import companies. TPAC is providing a service that can ride on top of an export company
CONFERENCE CALL QUESTIONS (from single shareholder)
I have been invested in TPAC for 2.5 years and love what the company is doing; however, I am somewhat puzzled by the revenue projections for 2017 disclosed in the timeline. Revenue is projected at 25.4M in 2017. This does not seem to me to agree with some of the information given out by TPAC in the last 1-2 weeks as follows:
Q: In an IR email on 8/15 the following was stated: "TPAC's Export Division provides expert negotiations with new global buyers for commodities from Metal Works, Oil, Lithium, Non-GMO foods, and Gold ..... TPAC sees new contractual revenue above $100M through 2017 (forward expectations)". This projection is far in excess above the Timeline projection.
A: At the beginning of the call, it was reported that the projected figures did not include any revenue from BTL business, TPAC AU business or any EIA service. This was just based on BTL contract and some additional equipment that TPAC will provide and increase as well as types of metal work.
Q: In a Twitlonger narrative on August 23 it was stated that "Exports will surpass the bearing business in 2017. More than 50 percent of TPACs revenue will be based on its EIA services, up to 10 percent on Licensing Agreements, and up to 40 percent on direct sales of bearings as a prime distributor." We know that next year TPAC has the BTL SLA and license agreement locked up for a total of $14.5M and the TPAC Australia license agreement for $1M. This total of $15.5M in 2017 is more than 60% of the projected revenue of $25.4M, yet it was stated that next year only up to 10% of revenue would be from licensing agreements. These numbers are contradictory. Furthermore, if revenue is $25.4M in 2017 and more than 60% is from the bearing business (licensing agreements), then export revenue will not surpass the bearing business revenue in 2017, contrary to what was previously stated.
A: First -- no EIA data is in the timeline however EIA projects are three times higher in gross volumes than the standard BTL contract -- for instance -- if by year end oil was sold at 2M barrels at $40.00 USD per barrel, TPACs gross would be $80M USD with adjusted net at 10 cent/barrel -- 2,400,000 that is just one deal against the BTL contract. If it was gold at $250.00 USD target per kg on an annual contract on 2T per month, BTL would be surpassed easy. Now these scenarios are in negotiations as these questions are being answered however since the EIA contracts are not in place the figures were not reported.
Q: It has been reported that TPAC had RFQs in July of about $200M. It was also stated that export potential is $10B and that the export opportunities for TPAC are truly phenomenal. Then there are the potential relationships with Boeing and AVIC and the SLA with TPAC Australia.
My main point in bringing all of this up is that based on this information that was previously given out by TPAC before the Timeline came out it appears to me that 2017 projected revenue in the Timeline has been significantly understated, and therefore, Net Income has also been understated.
A: You are correct we didn’t report but, what is signed sealed and delivered.
Q: I would appreciate it if you could address the discrepancies in these numbers. I am an avid reader of the Investor's Hangout chat board and have not seen any other shareholder question the revenue projections as being understated. I think this topic is very important for all shareholders on the conference call to hear. The challenge is to get the Shareholder use to a different way to build a stable TPAC,
A: First let’s make sure we set the base, first it is the company then stock, There is no discrepancies in the numbers. TPAC holds it course on being conservative. Providing FGM based on actual then speculated. We choose to report on the bird in hand, not the ones in the bush. The TPAC team is here to bring internal value to the core of TPAC. Stay focus on the core.
Q: One additional question: Why did the Timeline not address direct sales
A: It did address direct sales. TPAC is a service supplier therefore its direct sales was the license agreement and service level agreement.
That was TPACs direct sales. TPAC has made a 10 year sale with BTL and looking to complete the same with TPAC AU. TPAC wants new LA’s & SLA’s -- that’s it. When Boeing completes it vendor overhaul, TPAC goal is to be in a position to Prime with certified China manufactures managed by Trans Pacific Aerospace.
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