Pyxus International, Inc. (PYX) Q4 2019 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool - finance.yahoo.com Posted 6 years ago
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. And my last question, just to clarify. On the monetization of the growth properties, is that something that you -- that will occur after you have like more revenue from those properties in your fiscal Q3 and fiscal Q4. Is that the idea?" data-reactid="189">OK. And my last question, just to clarify. On the monetization of the growth properties, is that something that you -- that will occur after you have like more revenue from those properties in your fiscal Q3 and fiscal Q4. Is that the idea?

Joel Thomas -- Chief Financial Officer

I think that right now that the focus is sort of on the end-state capability of the business. We're obviously very focused on what we've done related to the build outs, and then of course, the revenue and profitability ramps that are occurring. And so those are all discussion points and all focal areas for discussion.

Unknown speaker -- Wasserstein & Co Debt Opportunities -- Analyst

OK. Great. Thanks. Great job guys.

Thanks. Bye.

Operator

Thank you. We'll take a follow-up from Mary Gilbert with Imperial Capital.

Mary Gilbert -- Imperial Capital, LLC -- Analyst

Yeah. Kind of touching up on the minority investments. So Criticality is going to become a majority investment by the end of the year. Do you get to take when that occurs? Do you get to take the whole impact of the profitability revenues and EBITDA into your financial performance for the full fiscal year when that occurs? And then also...

Joel Thomas -- Chief Financial Officer

Again, we're...

Mary Gilbert -- Imperial Capital, LLC -- Analyst

Yes, sorry go ahead.

Joel Thomas -- Chief Financial Officer

I was just going to say, yes, we've outlined, I think, very high level some of the work that we're in the middle of right now. And we'll provide additional clarity as such time makes sense. But I think it's real early to try to bisect things at this point.

Mary Gilbert -- Imperial Capital, LLC -- Analyst

Got you. And then also just with regard to -- it sounds like the e-liquids business has been exceeding expectations in terms of growth, which sounds really good, and then of course the prospects of CBD. But I was just wondering if how you view the risks associated with the FDA targeting flavors and some of the issues around that?

Joel Thomas -- Chief Financial Officer

Well, flavors are always a focal point. But I think the point that we always come back to is that, we believe in marketing to adult use, and we remain very focused on that. And I think that everything we do as a company is to try to ensure that adults can use these products, and our marketing and our focus, again, is to adults. So I think that there's been a lot of work at the FDA level.

And if you can look at -- if you look at some of what they have said over the last call a year and where they've pointed to on a lot of companies, I think that we're doing our best to be out in front with sort of best practices and doing our best to make sure that it's in line with what I kind of just laid out.

Mary Gilbert -- Imperial Capital, LLC -- Analyst

OK. Great. Thank you.

Operator

Thank youy. We'll take another follow-up from Bryan Hunt with Wells Fargo Securities.

Bryan Hunt -- Wells Fargo Securities -- Analyst

Yeah. Thank you. I was wondering, Joel, when you look at the overall marketing spend on FIGR, is there anyway you can kind of segment out the marketing spend versus maybe the spend on licenses and personnel? So if we can just get an understand of what you're investing in the brand?

Joel Thomas -- Chief Financial Officer

Yeah. So, Bryan, right now, there is a pretty considerable ramp related to the people in the holding company at FIGR, Inc. and building out the team. And so a lot of the spend is associated with that.

We also have some very talented marketing and branding firms that we're working with. And we've a pretty big spend associated with that as we think about not only the Canadian market, but also other markets where we operate. So those are all kind of components of where we're spending right now. Obviously, you've got differences in what's legal in Canada versus what's legal in the U.S.

and other parts of the world. And so we need to make sure that we're following the various rules and regs related to those legal requirements.

Bryan Hunt -- Wells Fargo Securities -- Analyst

Just two more questions. One, does Criticality get or Korent a letter from the FDA during the year and could you talk about what the resolution was there?

Joel Thomas -- Chief Financial Officer

Korent has not received any letters that we're aware of.

Bryan Hunt -- Wells Fargo Securities -- Analyst

OK. I thought I read that in the 10-k. And then my last question, I was wondering with all these capabilities. I mean, if I look at your core tobacco customers, a lot of them are going down kind of the same path you are in terms of e-liquids or vaping tools as well as, I dare say, a lot of them are probably going down the path of exploring cannabis.

Are your new capabilities providing a halo effect for your legacy business? And if so, can you talk about how? And have there been any particular wins, given your new capabilities? And that's it.

Pieter Sikkel -- President, Chief Executive Officer, and Chairman of the Board of Directors

Well, I think, we're ahead of many of our customers in certain of new businesses that we've gone into. But those with halo effect, I think, a strong Pyxus means a strong supplier of any products, which means it's a good company to be associated with as a supplier or a partner or anything else. So I think that, yes, when you talk about a halo effect, I certainly believe that there. Certainly, all the discussions we've had with multitude of our customers across the globe have always been extremely positive as we've been going through this transformation and there has been a lot of excitement about that.

And I think it's not only that optimism and outlook is affecting our customers, it's also affecting our employees and that spirit is running across the whole business. So I can't directly attribute anything in leaf to anything in -- on the other side of the business. But at the same time, I think it creates a very positive outlook for all to be -- to have Pyxus in your supply chain.

Bryan Hunt -- Wells Fargo Securities -- Analyst

Well, very good. That's it for me. Thank you.

Operator

Thank you. And that does conclude today's question-and-answer session. I'd like to turn the conference back over to Mr. Thomas for any additional or closing remarks.

Joel Thomas -- Chief Financial Officer

Thank you, for joining our call this afternoon. The call will remain available for playback for any interested person till 8 p.m. on June 22nd. Our financial results and Form 10-K as well as other information can be accessed in our website at www.pyxus.com.

Additionally, I'm available by phone should anyone have any further questions. Again, thank you for participating in our conference call this afternoon.

Operator

[Operator signoff]

Duration: 51 minutes

Call participants:

Joel Thomas -- Chief Financial Officer

Pieter Sikkel -- President, Chief Executive Officer, and Chairman of the Board of Directors

Jacqueline Crawford -- Jefferies -- Analyst

Mary Gilbert -- Imperial Capital, LLC -- Analyst

Bryan Hunt -- Wells Fargo Securities -- Analyst

Hale Holden -- Barclays -- Analyst

Unknown speaker -- Wasserstein & Co Debt Opportunities -- Analyst

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