Stephen Merrick
各位早上好，感谢大家参加本次电话会议。我将为大家介绍我们的业绩报告。与我一同出席的有我们的首席财务官Tim Patterson，以及公司董事兼投资者关系总监Stan Brown。报告结束后，我们将回答大家可能提出的问题。
与去年同期相比，我们第三季度的销售额和业绩有所下滑。稍后我们将详细讨论这一点。但首先，我想报告的是，我们完全预期能够在第四季度弥补第三季度的不足。事实上，根据我们已经收到并正在履行的订单，我们完全预期第四季度和全年都将达到创纪录的销售水平，并且在第四季度和全年都将实现强劲的利润。
我们将详细讨论对第四季度和全年的预期，但首先让我回顾一下第三季度的业绩以及导致本季度业绩下滑的因素。
第三季度，我们的净销售额为13,476,000百万，而去年第三季度的净销售额为14,881,000百万，比去年下降了约140万。上个季度销售额下滑的原因是乳胶气球销售的美元价值较低，以及真空封口机在本季度的销售额较低，我们预计这两项都将在第四季度得到充分弥补。除了这些例外情况，本季度的销售表现强劲且持续增长。
截至2016年9月30日的九个月，我们的净收入为42,832,000百万，仅比去年同期的43,477,000百万下降了约1.5%。在这种情况下，销售额下滑几乎完全是由于今年迄今为止乳胶气球的销售较低，我们稍后将对此进行讨论。
本季度，我们的净亏损为180,000，即每股0.05美元；而九个月的净亏损为257,000，即每股0.07美元。正如我所说，我们预计在第四季度和全年将完全弥补这些亏损。
现在让我按产品线回顾我们的业绩和预期。
在我们的铝箔气球产品线中，本季度和年初至今的业绩表现强劲。第三季度的收入为6,178,000百万，而去年第三季度为5,253,000百万，增长了17.6%。九个月的铝箔气球收入为20,540,000百万，而去年同期为18,607,000百万，增长了10.4%。我们预计第四季度铝箔气球的收入将继续保持强劲增长。
在我们的品牌真空封口产品线中，第三季度的收入比去年第三季度下降了约543,000。去年为3,137,000百万，今年为2,594,000百万。然而，我们认为这是预期中的情况，因为我们在第四季度正在经历该产品线的非常可观的销售增长。
今年九个月，品牌真空封口机和薄膜卷的销售额为7,240,000百万，与去年同期的7,386,000百万非常接近。然而，重要的是我们预计真空封口产品线在第四季度和全年的销售将大幅增长。仅第四季度，我们已经收到了超过800万美元的真空封口系统订单，我们预计该产品线的销售额全年至少将达到1700万，而2015年全年销售额为10,624,000百万。
让我补充一点，影响我们今年真空封口产品整体销售的一个因素是我们不再向去年购买该产品的客户销售拉链式真空袋。现在，我们真空封口产品的大部分销售包括我们的品牌真空封口机、袋子和卷材。
在我们的家居整理和容器产品线中，我们的销售持续下滑。第三季度该产品线的收入为1,288,000百万，而去年为1,121,000百万，增长了约15%。九个月该产品线的销售额为4,243,000百万，而去年为2,690,000百万，增长了57.7%。
现在转向我们的乳胶气球产品线。第三季度该产品线的收入为1,875,000百万，而去年同期为2,613,000百万，销售额的美元价值下降了738,000。九个月的乳胶气球收入为6,182,000百万，而去年为7,221,000百万，销售额的美元价值再次下降了约1,039,000百万。
我们乳胶销售美元价值的大部分下降是由于过去18个月比索价值的下跌。2015年初，墨西哥比索的价值约为14比索兑1美元，今天已超过21比索兑1美元。在此期间下跌了超过40%。这种下跌对我们的乳胶销售和利润产生了双重影响。首先，我们乳胶气球销售的大部分是在墨西哥和拉丁美洲以比索计价的。因此，这些销售的美元价值低于原本应有的水平。其次，我们以美元购买原材料乳胶，因此我们的商品成本实际上增加了。另一个因素是我们的生产未达到预期，因为我们预计在4月上线的新生产机器直到9月才全面投产。
虽然比索价值将继续影响我们的乳胶气球业务，但我们确实希望通过增加在美国、英国和欧洲的乳胶气球销售来改善该产品线的业绩，这将提高这些销售的价值，同时通过增加乳胶气球的生产和利用新生产机器的全部产出来提高销售。
为了完善我们九个月的产品线信息，我们的商业薄膜收入从去年的3,289,000百万增长了约6.7%，达到今年的约3,508,000百万。
从融资角度来看，今年面临了一些挑战，因为我们收到了品牌真空封口产品线和气球产品的第四季度交付的非常大的订单。我们需要获得一些额外的融资来支持我们对原材料和库存的承诺，特别是在6月至9月期间。因此，我们进行了私募配股，并在该期间从我们的两位主要股东那里获得了短期贷款。
目前，在融资的帮助下，我们的财务状况良好。截至今年9月30日，我们的营运资本为11,322,000百万，现金余额为624,000，信贷额度可用资金为2,830,000百万。
我们预计将以强劲的势头结束今年。正如我所指出的，我们预计第四季度主要产品线的销售将非常强劲，包括我们的品牌真空封口产品线、铝箔气球产品线和家居容器及整理产品线，并且我们预计乳胶产品线也会有所改善。
虽然我们不提供具体的指导，但我们可以说，我们确实预计第四季度和全年都将创下销售纪录。此外，我们预计在第四季度和全年都将产生良好的利润。
我们的报告到此结束。接线员，请协助我们处理与会者的问题。
Stephen Merrick
Good morning, everyone, and thank you for participating in the call. I will be presenting our report. With me is Tim Patterson, our Chief Financial Officer; and Stan Brown, Director of our company and Director of Investor Relations. At the conclusion of the report, we will be available to answer questions you may have. Our sales and results were down some for the third quarter compared to last year. We’ll review this specifics on that in a minute. But first, I do want to report that we fully expect to more than make-up for the third quarter shortfall in the fourth quarter. In fact, based on orders we have received and are now fulfilling, we fully expect that both the fourth quarter and the full year will reach record sales levels and that we will achieve strong profits in both the fourth quarter and for the full year. We’ll get into some detail about our expectations for the fourth quarter and the year, but first let me review the results for the third quarter and the factors that resulted in our shortfall for the quarter. In the third quarter, our net sales were 13,476,000 million compared to net sales of 14,881,000 million in the third quarter last year, down about 1.4 million from last year. The shortfall in sales this last quarter was due to the lower dollar value of latex balloon sales and lower sales of vacuum sealing machines in the quarter, both of which we expect will be more than made-up for in the fourth quarter. With those exceptions sales for the quarter was strong and growing. For the nine months ended September 30, 2016, our net revenues have been 42,832,000 million, which is down only about 1.5% on the year from 43,477,000 million for that period last year. The shortfall in this case is due almost entirely to lower sales of latex balloon so far this year, which we will discuss. For the quarter, we had a net loss of 180,000 or $0.05 per share and for the nine months we have had a loss of 257,000 or $0.07 per share. Again as I said, we expect to more than fully make-up those amounts in the fourth quarter and for the year. Let me turn now to review of our results and our expectations by product line. In our foil balloon product line results for the quarter and for the year-to-date have been strong. Revenues in the third quarter were 6,178,000 million compared to 5,253,000 million for the third quarter last year an increase of 17.6%. For the nine months foil balloon revenues have been 20,540,000 million compared to 18,607,000 million for that period last year, an increase of 10.4%. We expect revenues in the fourth quarter from foil balloons to continue to be strong and increasing. In our branded vacuum sealing product line, revenues in the third quarter were down about 543,000 compared to the third quarter last year. 3,137,000 million last year against 2,594,000 million this year. However, we believe that this was in anticipation, a very substantial sales that this line, we are experiencing in the fourth quarter. For the nine months this year, sales of branded vacuum sealing machines and rolls of film have been 7,240,000 million, very close to last year sales of 7,386,000 million for this period last year. However, the big story is that we are expecting a major increase in sales of our vacuum sealing line in the fourth quarter and for the year. We’ve already received orders from vacuum sealing systems for the fourth quarter alone from more than $8 million and we anticipate that our sales in this line of products will reach at least 17 million for the year, compared to 2015 full year sales of 10,624,000 million. Let me just add a note that factor in our overall sales of vacuum sealing products this year is that we are no longer selling zippered vacuum bags to customer we had for that product last year. And most of our sales of vacuum sealing products now consist of our branded vacuum sealing machines, bags and rolls. In our home organizing and container line, our sales continue to decline. For the third quarter revenues in this line were 1,288,000 million compared to 1,121,000 million last year and increase of about 15%. For the nine months sales in this line were 4,243,000 million compared to 2,690,000 million last year, an increase of 57.7%. Turning now to our latex balloon line. For the third quarter revenues in this line were 1,875,000 million, compared to revenues in that period last year of 2,613,000 million, decline in the dollar value of sales of 738,000. For the nine months, latex balloon revenues have been 6,182,000 million, compared to 7,221,000 last year, a decline again in the dollar value of sales of about 1,039,000 million. Much of that decline in the dollar value of our latex sales has come about because of the decline in the value of the peso over the last 18 months. The beginning of 2015, the Mexican peso had a value of about MXN14 to the dollar, today it is over MXN21 to the dollar. A decline over that period of over 40%. This decline has had a double effect on our latex sales and profits. First, a good portion of our sales of latex balloons is in Mexico and Latin America denominated in pesos. So the dollar value of those sales is less than it otherwise would have been. Second, we purchase raw latex in dollars, so our cost of goods has in effect increased. Another factor is that our production was not what we anticipated, as a new production machine we expected to have online in April was not in full production until September. While, the peso value will continue to have effect on our latex balloon business, we do expect to improve our results in the line by increasing our sales of latex balloons in the United States, the UK and in Europe, which will improve the value of those sales and also by increasing our production of latex balloons and our sales with the full output of our new production machine. Just to round out our product line information for the nine months, our commercial film revenues have been up about 6.7% from 3,289,000 million last year to about 3,508,000 million this year. This year has presented some challenges from a financing standpoint due to the very large orders we received for our branded vacuum sealing line and our balloon products for delivery in the fourth quarter. We needed to obtain some additional financing to support the commitments we made for raw materials and inventory, particularly over the period from June through September. And accordingly we engaged in a private placement of stock and also received a short-term loan from our two principal shareholders in that period. At this point with the help of that financing, our financial condition is good. As of September 30th this year we had working capital of 11,322,000 million, cash balances of 624,000 and available to us on our line of credit 2,830,000 million. We are expecting to close the year on a strong note. As I indicated, we expect that our sales in the fourth quarter will be very strong in our principal product lines. Our branded vacuum sealing product line, our foil balloon product line and our home container and organizing product line and we expect to see some improvement in our latex product line as well. Well, we do not provide specific guidance, we can say that we do expect to have record sales for both the fourth quarter and for the full year. And further, we expect to generate good profits in both the fourth quarter and for the full year. That concludes our report. Operator, may we have your assistance with respect to questions from participants.
