Business/Contracts in CanadaAs we know, Luxor has a legacy business that provides products to retail stores.
....Normal business is about $3 million per year.
Besides that, Luxor also has contracts for residential multi-home construction.
....In July/15 , Luxor Industrial Corp. commenced manufacturing architectural wood products for Woodtone Industries based in Chilliwack, B.C. Luxor had received initial orders for 788 units of knee braces and 400 units of corbels. Typically these products used in residential construction are manufactured from lumber;
Luxor is using engineered wood products, namely glulam beams. Luxor has developed an expertise in fabricating engineered wood products
for uses in wood frame construction and now is utilizing this expertise to fabricate architectural wood products.
I have no real idea as to the revenues that will be generated by this new business.
......Luxor Industrial Corp.'s Canadian framing division, , signed its first contract with Quantum Place Developments Ltd. of Alberta.
The contract for the Raven Rock project located in Canmore is in excess of $1-million. Mill Frame Inc. is the exclusive framer for Quantum Place Development Ltd.
... In addition to providing framing, Mill Frame Inc. will be supplying prefabricated wall panels and precision-cut engineered wood floor systems for the project which commenced in November, 2015.
....at that time, In the forward period, Mill Frame Inc. had several million dollars in letters of intent and signed-off quotation sheets.
Quantum Place ( https://quantumplace.ca ) is a canadian multihome construction company.
In addition to Raven Rock 1, it has 11 other building projects at various stages of approval and solitication.
These should provide Luxor with a steady stream of framing contracts over the next several year.
Based on the initial contract and the size of the 11 new residential projects by Quantum, I estimate future contracts, in aggregate, to be about $15 million +- $5 million.
In november/15, after months of planning, Luxor decided to fast-track their expansion plans to meet the demand for turnkey framing projects in the western United States, and Canada.
At that time , Luxor commenced construction for two buildings to manufacture wall panels and precision-cut engineered-wood floor systems and to provide additional outside storage.
These were completed in Q1/16.
In addition, Luxor recently acquired by lease another 35,000 sq ft of plant space just north of the Abbottsford BC plant.
These are leased for 5 years, with the lease beginning on July 1/15.
To the best of my knowledge, Luxor is now capable of responding to annual business of $40 million.
$11 million US ( about $14.5 million in cad ) of US contracts were in progress during Q2.
Further, it has added fire retardent framing products to its suite of commercial retail sales.
With such rapid expansion, many facility costs tend to be front loaded by necessity.
We saw a lot of these in Q4 and Q1.
All of these have come in on budget ( see sedar ).
With certain deliveries of $20-$25 million in US contracts in the next 3 quarters, we will be seeing a strong increase in sales and net earnings which will be protected by Luxor's forward tax loss pools.
Its why I added more yesterday..