Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the H2O Innovation Conference Call announcing its third quarter 2021 financial results. [Non-English content]. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press the star key followed by zero for operator assistance at any time. [Non-English content]. Before turning the meeting over to management, please be advised that this conference call will contain statements that could be forward-looking and subject to a number of risks and uncertainties and could cause actual results to differ materially from those anticipated. I would like to remind everyone that this conference call is being recorded today, May 13th, 2021 at 10:00 A.M. Eastern Time. I will now turn the conference over to your host, Monsieur Frédéric Dugré and Marc Blanchet. Please go ahead, gentlemen. Thank you, and good morning, everyone. My name is Marc Blanchet. I'm CFO of H2O Innovation. This call will be held in English, but I'll just say a brief word in French to our French audience. [Non-English content]. Before we begin, I invite you to download a copy of today's presentation, which can be found on our website at h2oinnovation.com in the section investors. Frédéric Dugré, President and CEO, is joining me today for the call, which duration is approximately 30 minutes. During this call, Frédéric will give an update on the business and present highlights of this third quarter 2021. I will be presenting the financial result of this quarter and at March 31st. Please take a moment to read the forward-looking statement on page two and the non-IFRS financial measurement on page three of the presentation. I now hand over the call to Fred. Thank you, Marc, and thank you for joining the call today. Once again, we are extremely proud to present a strong financial performance for our Q3 results. As we continue to build our platform of complementary water treatment technologies and services through acquisition and innovations, we multiply the synergies between these technologies and services, which simultaneously fosters an exceptional business culture full of diverse talents. Let's have a look at the business highlights during the third quarter and the March 31st, 2021, presented at page four. Boosted by the accretive acquisition of GMP in Spain, announced on February 1st, 2021, allowing us to expand our specialty chemicals capabilities and sales coverage in Latin America, revenues increased by 8.6% to stand at CAD 39 million for this third quarter and increased by 11.8%, almost 12%, reaching CAD 109 million for the nine-month period. Both gross profit and adjusted EBITDA continue to expand and reach 28% and 11.5% respectively. This continuous margin improvement is driven notably by a few factors, such as our constant focus to secured projects at superior margins, an increasing amount of specialty product sales, more specifically the chemicals, our dedication to operational excellence in the O&M Group and its business combination announced previously in the last quarter, and finally, to a tight control on our fixed cost expenses. This certainly pays off since we are presenting a record-high net earnings of CAD 2.1 million for this third quarter, boasting for a fourth quarter in a row a constant and growing net earnings. The multiple synergies become our competitive advantage as they generate value for our customers and help the company preserve long-term business relationships, thus posing high recurrent revenues. For this third quarter, recurrent revenues remain high at 83%, offset a little bit by the growing proportion of revenues coming from the projects. On an LTM basis, recurrent revenues accounted for 87% of our overall revenues. The sustained free cash flow of CAD 10.2 million generated from the operations, combined with constant margins improvement, testifies to the work of the last months and even years. This cash from the operations allows us to improve our balance sheet and reduce constantly our debt. With a strong financial position showing a net debt to adjusted EBITDA ratio of 0.2, we have room to invest in organic growth opportunities and to realize strategic acquisitions. In other words, to achieve our three-year plan. Let's have a look at the performance of each of our business pillar. Starting at page five with our first business pillar, the water technologies and services named WTS. As expected, we are finally seeing growth momentum regaining the WTS business pillar. The significant increase in the revenues and the EBITDA is notably explained by three reasons. Projects have started to move from the engineering phase to the fabrication phase and from the fabrication phase to the commissioning phase, allowing us to accelerate revenue recognitions. Also, we dedicated additional efforts to grow proactively service and aftermarket sales, contributing to customer retention, thus recurrent revenues. Finally, the significant improvement in our WTS profitability or the EBITDA is notably due to our determination to pursue opportunities at higher margin profile. It is also the result of restructure completed at the end of Q4 in the previous fiscal year. Our backlog, which stands at CAD 35 million at the end of Q3, is more diversified with a greater number of industrial projects. The industrial projects account now for 34% of the overall backlog, whereas municipal-related projects represent 66%. This is the result of our strategic focus to pursue more actively industrial opportunities, without neglecting, obviously, our strong presence and recognition in the municipal sector. That being said, we want to reiterate that we welcome very positively the $30 billion water-related infrastructure plan announced earlier by President Biden at the end of April. We believe many opportunities will emerge from this stimulus plan, notably for new water reuse projects in order to fight back the growing water scarcity in southern states. As mentioned previously, by expanding our services and aftermarket team, we have been able to diversify our ethanol-related customer base and added 10 new customers, which most likely will continue to bring recurrent revenues for the company. We also delivered a SILO, our new MBR technology, to an industrial customer. This is the picture that you see at the bottom right corner of the slide. In other words, it is a packaged MBR system capable to treat wastewater and industrial effluent in a very efficient way at low energy cost. It is also extremely easy to operate, and there are barely no moving parts, since the system is driven by gravity. We are very excited about this new installation as it could open up the door to many other opportunities and units that we're going to sell in the coming months or quarters. In general, the WTS teams remain extremely busy with now 32 projects under engineering phase, up 10 from the previous quarter. As these projects will enter the fabrication phase in the coming quarters or coming months, we should be able to maintain our growth of revenues in the coming quarters. Let's look now at page six at the progression of our specialty products business pillar. During the third quarter, revenues from specialty products have slightly declined by 8.4% compared to the same quarter in the previous year. This decrease is mostly explained by the lower volume of sales coming from Piedmont on this third quarter compared to last year, where Piedmont represented the record high revenues. We need to keep in mind that last year, Piedmont revenue was just a complete record high year ever. However, on a nine-month period, the revenues have increased by 18%, pushed mostly by the organic growth of our specialty chemicals product line, PWT and Genesys, and by the sustained growth of our maple product business line. On an LTM basis, our specialty products business pillar continued to show revenue and profitability growth. During this third quarter, the acquisition of GMP was an important catalyst to our business growth and membrane chemicals capabilities expansion. I will talk about it in a minute on the following slide. In parallel, Genesys obtained two new ISO certifications related to health and safety and continuity of business. This is clearly a pledge to the quality of the work performed in our U.K. facility and to the care that we have for our employees. These two new certifications are both in line with our strategic objectives presented in our three-year plan. To enhance our focus in water reuse in North America and to consolidate our efforts to expand the business in Latin America, notably following the acquisition of our new business, GMP, with their office in Chile, we hired a new VP to coordinate this marketing effort. It is a total now of 20 distributors that we have in Latin America, representing Piedmont, Genesys, and the PWT product lines. We believe there is a lot of upside to be captured for this business in the coming quarters. Talking about South America. Well, we are pleased to report that we have secured a new distributor agreement in Brazil for our Piedmont product line. Lastly, in order to support the sustained growth of our maple business line, which is currently facing significant and sustained growth since the last couple of quarters, we secured a new lease agreement allowing us to increase by 40% our manufacturing capabilities in our plant in Ham-Nord. This expansion will allow us to use this additional space to support the anticipated growth also of our WTS business pillar for the manufacturing of membrane filtration system. Moving to page seven. Behind the acquisition of GMP, announced on February 1st, 2021. Our desire to acquire this business was essentially motivated by our vision and goal to develop the world's largest membrane specialty chemical and service supplier through distribution. The laboratory based in Madrid is globally recognized as a preeminent membrane autopsy facility in the industry. This lab has performed thousands of membrane autopsies over the years, providing us with a cutting edge knowledge in the full spectrum of membrane filtration applications. Moving forward, the laboratory will continue to support our Genesys distributors around the world, as well as PWT distributors. Our second motivation behind this M&A transaction is to support more effectively our distributors and end users based in Latin America through their wholly owned subsidiary in Santiago, Chile. It also positioned the corporation with a better access to the Latin American membrane chemical market, in particular for the mining industry, which is a strategic target for the corporation. Moving now to the operation and maintenance business pillar presented at page eight. The revenues from our O&M showed a 5% increase during the third quarter. On an LTM basis, as per the chart on the upper right is showing, the revenues from O&M business line continues their steady progression and now reach almost CAD 70 million, boosted by the acquisition of GUS completed on July 1st, 2020 and by the organic growth. As mentioned previously, the business combination of our three O&M companies announced in Q2 is starting to pay off. Combined to the other initiatives aimed at improving our operational excellence and our continuous outstanding customer care, we have been able to improve our EBITDA performance by almost 28% compared to last year. We believe that these operational efficiencies will remain and allow us to capture more synergies and further scale up the business moving forward. During the third quarter, we secured two new O&M contracts, one in Texas for a Municipal Utility District, or what we call a MUD, adding to the current 85 other MUD customers that we have around Houston area. We also secured a new one in Alberta. We are particularly proud of this last one in Western Canada, since it will enable us to do an O&M of a one million gallons per day MBR, treating the effluent of a food and beverage industrial customer. This new industrial O&M contract is in line with our willingness to grow further the O&M business with more industrial customers. It also worth to mention that within three years, we have grown our O&M business in Alberta from nothing to servicing now 15 facilities in total. It's worth to mention that during this period, we renewed four O&M contracts for municipal customers in the northeast region. These renewals testify to the quality of the service and care provided on the assets that we operate and maintain. Talking about customer care, I would like to salute and thank our colleagues in Houston area that had to deal with the unexpected freeze during the last two weeks of February. This polar vortex was responsible for damage of multiple water and wastewater infrastructure, on top of causing multiple mechanical upsets on various equipments, pump failures, pipe burst, and water service interruptions. Since H2O Innovation doesn't own any equipment nor infrastructure or exposure and responsibilities are limited. Our job essentially was to do everything we can to ensure, in the safest manner, the continuity of the service provided to our 85 customers. Our team worked continuously to lift approximately 45 boiling advisory notification within three to six days following the freeze event. In a nutshell, our workforce did a fantastic job without injury and was able to restore water services to all customers. Moving to page nine. Despite the lasting COVID-19 pandemic, the water sector remains very resilient and shows that our business model, combined to the essential nature of the products and services we offered, is robust. The multiple synergies between our different business lines become our competitive advantage as they generate value for our customers and help the company preserve long-term business relationships, thus causing high recurrent revenues. This high level of recurrent revenues also allow us to not only gain financial predictability, but also contribute to significantly de-risk the business, improve cash flow and gross profit margins. At the end of the third quarter, the recurrent revenues accounted for 87% of our consolidated revenues on an LTM basis, driven by our specialty products that we manufacture and sell through a large network of distributors. By the Operation & Maintenance, we are providing to 275 water and wastewater utilities in North America and by our service activities and aftermarket sales. I will now pass it on to Marc Blanchet, our CFO, who will review and discuss with you the financial performance of our company for this third quarter. Thank you, Frédéric. First, let's look at each business pillar, the financial performance. First, page 11, Water Technology and Services. Revenue for this third quarter stood at CAD 10.1 million compared to CAD 6.7 million last year. This is a 50% increase, which was primarily due to recent wave of project captured, as well as the resumption of work following the delay caused by the pandemic last year. The gross profit margin stood at 19.2% for this Q3 compared to 18.6% last year. The gross profit margin was improved due to higher proportion of service activities, which comes with higher gross profit margin. The EBAC, so the earning before admin cost, stood at CAD 1 million during this quarter compared to CAD 100,000 last year. The increase of EBAC is driven by the increase in revenue, the improvement of the gross profit margin, and the reduction of the cost structure. The significant improvement in WTS financial performance is also due to the reorganization, the reorg we completed at the end of the fourth quarter last year, which allowed to reduce fixed cost and gain operational efficiencies, notably in the service and aftermarket team. On March 31st, the backlog stood at CAD 35 million, which is 14% decrease compared to last year. With CAD 3.2 million of new industrial and municipal projects secured at the end of the second quarter and early January 2021 are included in this backlog. The pipeline of project is still very rich in opportunity. Frédéric touched on it. The $30 billion plan announced by President Biden related to water infrastructure investment will allow the funding of new projects that will come out for bid in the next quarters. This will increase our pipeline opportunities. Let's move to the following page, slide 12. Revenue from specialty products stood at CAD 11.8 million compared to CAD 12.9 million last year. Revenue from specialty products decreased by 8.5% compared to last year because of the product mix. The decrease in revenue, as Frédéric explained, is explained by the reduction of Piedmont business line this quarter compared to last year, but partially compensated by the organic growth in Genesys and the addition of GMP. During the third quarter last year, Piedmont had exceptional deliveries which generate record high revenues. While during the third quarter of this fiscal year, the number of deliveries of Piedmont business line was not at the same level as last year. Nevertheless, revenue coming from specialty product business pillars, if we look at it on a last 12-month basis, increased by 28% compared to the previous 12-month basis. Those increase of revenues largely coming from acquisition and also organic growth of Maple and Piedmont over 12 months. The gross profit margin percentage was improved at 46% compared to 45% last year. This is due to the business mix. The EBAC stood at CAD 3.2 compared to CAD 3.6 last year, representing a decrease of CAD 400,000. The decrease is due to the lower level of revenue of Piedmont, while the cost structure remained the same. We move to the next page, 13, Operation and Maintenance. The revenue for this business pillar stood at CAD 17.3 million during this third quarter compared to CAD 16.4 million last year, representing an increase of CAD 900,000 or 5%. Revenue of this business pillar compared to last year were affected by the unfavorable U.S. exchange rate since almost all of the revenue of O&M are in USD. The impact of the currency variation compared to last year is CAD 1 million. On the other end, this negative impact is offset by half a million of organic growth and GUS revenue, which amounted to CAD 1.3 million during this quarter. The gross profit margin stood at 22% for this third quarter compared to 20% last year. This margin improvement, which represents CAD 0.5 million, is coming from operational efficiencies that we captured in some projects. The EBAC stood at CAD 2.8 million compared to CAD 2.2 million last year, representing an increase of CAD 600,000. It is explained by the reduction of SG&A, improvement of gross profit margin, and cost synergies captured following the acquisition of GUS. As of March 31st, the O&M backlog stood at CAD 66.4, representing a decrease of 35% compared to almost CAD 103 last year. The unfavorable U.S. exchange rate also have an impact on the backlog. The percentage decrease would have been 27%, assuming a constant U.S. exchange rate. The O&M backlog consists of long-term contracts, mainly with municipalities, which contains multi-year renewal options. The decrease is explained by some contract approaching to their renewal date. O&M long-term contract have typical duration of three to five years and have different anniversary date of renewal. The timing of renewal of these long-term O&M contracts may create fluctuation in the O&M backlog. In the past, the corporation has seen a very high level of the renewal rate. Management believes that the corporation is well positioned to renew these important O&M contracts and thus present an increase of O&M backlog in the next 12 months. It's also important to note that contracts from Hays and GUS, so the contract in the Houston area, are not included in this backlog since most of the contracts are with Municipal Utility District or MUD. These contracts are generally evergreen, revenue coming from MUD represent approximately 30% of the O&M revenues. Let's look at it on a consolidated basis. Page 14, financial highlights. On this third quarter, we reported revenues of CAD 39.2 million compared to CAD 36.1 million for the same quarter last year. It's an increase of 9%. As explained earlier, this increase is mainly coming from the two acquisitions we did in the last 12 months, so GMP and GUS, as well as the strong performance of WTS business pillar. The gross profit margin ratio stood at 28% compared to 29% last year. This decrease in percentage is explained by the business mix, with more sales coming from WTS business pillar. WTS O&M business pillar showed an improvement of gross profit margin in percentage, and it's in line with the corporation's strategy to focus on project with higher gross profit margin and capture operational efficiencies in the O&M contract. SG&A expenses stood at 16.6% compared to 18.8% over revenue. The decrease is driven by lower travel expenses due to COVID and decrease of the U.S. exchange rate compared to the same quarter last year. The corporation had full impact of the 2020 restructuring plan of WTS business pillar, which reduced the SG&A this quarter and partly offset by the acquisition of GUS and GMP, which increased a little bit the SG&A. We're very proud to report net earnings, as Frédéric said, for the fourth quarter in a row. It stood at CAD 2.1 for this third quarter compared to a net loss last year of CAD 3.1. Last year, we had an impairment that affected our net. This year increase of revenue and lower SG&A ratio helped to improve that net. We had a fair value gain on a step acquisition of GMP. I'll just briefly explain that point. When the corporation finalized the acquisition of the remaining 76% of GMP, the revaluation at fair value of the initial 24% of equity and the rest we had in GMP before the combination generated a CAD 2.3 million net earning. This net earning was unfortunately negatively impacted by a litigation provision we took of CAD 700,000. Again, this quarter, I want to bring your attention on the foreign exchange rate fluctuation between U.S. and Canadian dollar. Since 70% of our revenues are in USD and are converted into Canadian dollar in our consolidated revenue, the consolidated revenue are being impacted once we compare them to last year. For the conversion of revenue and expenses in our foreign subsidiary Canadian dollar, which is a reporting currency we're using. When we do the consolidation, we're using an average rate. The Q3 average rate was 1.27, and last year it was 1.34. This is a difference of seven. It had an impact on revenue of CAD 1.3 million. We are seeing the U.S./ CAD rate continue its downward spiral from Q4 last year. Last year average was 1.39 for Q4. Yesterday, the rate was at 1.19. Today, it's around 1.20. We might end up with an average of 1.23 this quarter. Each cent of difference is impacting revenue of H2O by CAD 185,000 and the EBITDA by about CAD 40,000. I mention this because in your financial model, you have to pay attention to this factor. As you can see, the impact is essentially on revenue, not that much on EBITDA since we are naturally hedged because most of our expenses are also in USD. Let's look at the EBITDA, page 15. Again, this third quarter, we are really proud to present this slide on adjusted EBITDA, CAD 4.5 million this quarter, which is 11.5% compared to last year was at 10.5%. It is an increase of 20% compared to last year. This increase of the adjusted EBITDA is driven by the increase in our consolidated revenues and the decrease in the SG&A ratios. Page 16, financial position. The working capital increased by CAD 1.3 million since June 30. All the variation on working cap items are explained by the acquisition of GMP and GUS, and the effect of the U.S. exchange rate doesn't have any impact since impact on receivable is $1 million, on inventory is $ 200,000, and it is offset by $1.2 million of impact on the payable. At the end, it is zero impact over there. On that slide, I also want to highlight the level of cash, which stands at CAD 13 million and this brings me to the following slide, 17, where we show the net debt, which is very low at CAD 3.3 million. It's a decrease of 7.2 compared to June 30. The ratio of net debt on adjusted EBITDA is very low at 0.2 compared to 0.84 on June 30. This decrease is mainly due to the cash flow from operating activities and favorable change in working cap items, which will be presented on the next slide, and by the exercise of warrant, which amounted to CAD 5.2 million during this last quarter. Therefore, we were able to reimburse our bank loans, so we have no more line of credit used at this point. Page 18, cash flow from operating activities. This quarter also, our cash flow from operating activities was pretty good at CAD 10.2 million for this last quarter compared to CAD 0.9 million, compared to CAD 900,000 last year. The cash flow generated from operating activities is mainly coming from CAD 6.5 million of favorable change in working cap items. This concludes my remark on the financial section, and I will now hand the call back to Frédéric Dugré for conclusion remarks. Thank you, Marc. As a closing remark, I will leave you with this chart at page 19. As they say, a picture worth sometimes a thousand words, so I believe this chart illustrates very well how the company has evolved over the last years and how we have transformed year-over-year our business model and continuously strive to grow our EBITDA to a double-digit number now. On an LTM basis, the revenues reached CAD 145 million at the end of March 2021, whereas the adjusted EBITDA reached CAD 16.4 million or the equivalent of 11.3% of the revenues. The extension on our margins enabled us to generate a sustained CAD 10 million of cash, as Marc explained, in our operations. Thanks to our business model promoting synergies between the different business lines and high recurring sales, we have continued our progression favorably despite the lasting COVID-19 pandemic. Our resilient and diversified business model allows us to absorb the business fluctuation, notably the one that Piedmont is currently facing, due to the momentarily slowdown in the desalination industry. We are confident and we are taking steps to regain positive momentum for Piedmont in the coming quarters. Overall, our balance sheet is very healthy and not over-leveraged. Our strong financial position will allow us to reinvest into organic growth opportunities, to pursue the development of new products, and to continue our acquisition plan. In summary, these results are in line with our three-year plan, which aim at growing the revenues to CAD 250 million and our adjusted EBITDA above 11%. That concludes our presentation today. I will now turn back to the operator for the Q&A session. Thank you. If you would like to ask a question please press star followed by the number one on your telephone keypad. To withdraw your question press the pound or hash key. [Non-English content]. Please stand by as we compile the Q&A roster. Your first question comes from the line of Frederic Tremblay of Desjardins. Please go ahead. Your line is open. Good morning, and congrats on the strong results. Thank you, Frederic. First question for me is a bit more color maybe on capital allocation priority, given your strong balance sheet. I know you mentioned some organic opportunities and new product developments and acquisitions. Can you go a bit maybe a bit deeper on those three elements and what you're thinking of and impact on, I guess, CapEx and your overall financial position from that? Yeah, absolutely. In terms of CapEx, just to clear this one up, for the operation itself of the ongoing business, the CapEx assumptions are not going to change. We're still using a number which is around 1% or so of the overall revenues. There's no big change over there that we're expecting for the following fiscal year. Indeed, we couldn't ask for a better timing. We are ending our year, most likely in a very strong financial position on June 30th. We are currently preparing our budget, updating our three-year plan. As we have laid out, the focus will be around more product innovation. We want to be able to reinvest into growth opportunities. We want to grow our sales organization, essentially. We need more feet on the ground. We need more people to be able to develop and support the development of these products. Yeah, as we have announced, we still have the target to now complete three acquisitions of tuck-ins in the next year to meet our three-year plan. We already did one in February, so there's three more to go. That's what we intend to do with our current financial situation. Those acquisitions potentially would be still targeting O&M or specialty products? That's it. These are the two areas that we favored. Perfect. I wanted to ask about inflation, obviously a common theme with many companies. Are you seeing any cost inflation for raw materials or labor? If you are, what are some of the things that you can do to offset that and protect margins going forward? We're seeing it too, I have to say. On the labor, I think we have been doing a relatively good job. We have some provision into some of our O&M contracts with CPI adjustments, where it is specified that there is 1%- 2% of the increase per year. This mitigates also this increase that we are providing to our employees and then that we're receiving from our customer. We are seeing some increase into raw material, for example, steel. The cost of stainless steel has increased, so all the other related products are also increasing. On some, we're able to pass it on to our customer, as it's a cost plus on some projects that we're doing. We have some protection there. We have been doing okay, I would say, with the chemicals so far. No important upsets on the cost structure of our chemicals. We do have, from time- to- time, some price increase that we're giving to our customer as well. Perfect. Thanks for taking the question. Thank you, Frederic Again if you would like to ask a question press star one on your telephone. [Non-English content]. Your next question comes from the line of Gabriel Leung of Beacon Securities. Good morning, thanks for taking my questions. Okay. Good morning, Gabriel. A couple of follow-ups. Morning. Obviously, very strong margin performance over the past couple of quarters. It seems like your EBITDA margins have exceeded your sort of business plan assumptions of about 11%. I'm curious, are you in a position right now to maybe revise your midterm margin plans? Do you think the plan would be, as you might have mentioned earlier, Frédéric, to reinvest into some sales and marketing initiatives to accelerate top-line growth? How should we think about the margin progression over the next little while? Margin progression, we won't change what we have presented in terms of three-year plans. It's still the same target. We're shooting at above 11%. At this point, yes, we believe we're slightly ahead of our plan and time, that's perfect, giving us the leisure now to reinvest again in organic growth. We want to be able to grow the business. We believe there's tremendous opportunities out there coming from large merger also. Just think about Veolia and Suez that merged together. This will certainly create many opportunities and talents that we could recruit. Think about, as Marc explained, and we touched, the Biden infrastructure plan. We want to be in a position to be able to capture as much as we can any investment that will be done along these lines. For us, we need more feet on the ground. If we're a little bit in advance, I prefer not necessarily to change at this point the targets we have for EBITDA, but try to reinvest in order to position the company on a very strong basis for organic growth. Got you. Thanks for that. Excuse me. Likewise, WTS obviously a nice sequential and year-over-year rebound in terms of revenue performance. This has always been the lumpiest business line. I'm wondering if you provide some color around how fiscal Q4, the June quarter, is sort of shaping up on the WTS side and as well as you look into fiscal 2022, how should we think about this business line? Are you targeting sort of a percentage growth for this business line, or are you thinking more we'd like to maintain a certain dollar amount of revenue, say CAD 30 million-CAD 33 million? Is that how you guys think about it for WTS? Well, first, within the WTS, there is a portion that we are growing very aggressively and actively, is the service side of the business. This will remain for the coming quarters. Again, as I said, what we like into our business model is to make sure that once we get the system delivered, we do everything we can to keep this customer. We put last year in phases to grow the service team, which brought back results. As I explained, we have been able to grow the number of customers we have in servicing, bringing additional recurring revenue. Moving forward, we still intend to grow more actively the service side of this business. If you look at the backlog, if you look at the number of projects we have under engineering phase, everything indicates that at least we should be in a position to somehow replicate what we have done this year in terms of revenues coming out of projects. I think we are in extremely nice and good position compared to where we were 12 months ago. Most likely, we will be starting the new fiscal year with a strong visibility and a complete visibility on the revenues we're going to execute in the coming year, coming out of this project, which was very different than last year. If things comes to worst, we'll be just replicating what we have done this year. Again, we're trying to grow the business. As you pointed out, it's the business that is hard to predict, but on the other hand, we're starting the year way better than we were last year with way more visibility in terms of revenue for the coming new fiscal year, with this focus on top of this to grow more actively the service side, which is recurrent. Got you. Then shifting to the specialty division, in the MD&A, you pointed out Piedmont being impacted by a slowdown in construction of new large international desalination plants. I'm curious, what are you sort of seeing in the marketplace right now that gives you comfort around a pickup of this over the next, call it, 12- 24 months? As you indicated in the MD&A, are you seeing the strength? Are there any geographic pockets that are showing the strength? Middle East, perhaps? Any color there would be great. The desalination market itself did a little pause, I would say, in the last fiscal year. There was so many construction going in the previous two fiscal year, which Piedmont was able to surf on, let's say. This year, starting and impacted by the COVID, suddenly all the large construction in the Middle East kind of slowed down or were in pause a little bit. We are confident indeed that this large construction industry in desalination market will boom in the next 12-24 months. This is okay. The strategy in the meantime for us is, as we have explained, find new and add more distributors into our distribution ship and expand the product offering. We need to grow and have more products, which we are currently working on, and this will enable us to not only diversify ourselves, but tends to prevent margin erosion as well. When the desalination market will bounce up again, we should be in a better position to capture a lot. Capture the volume, benefit from the product diversification, and have a larger distribution network in place. Got you. I just have two questions for Marc. Marc, first, that increase in the manufacturing capacity in Quebec, is that going to have any near-term impact on gross margins in either specialty or WTS? That's the first question. The second question is, do you mind just reviewing your current warrant position, given that that'll probably be a nice source of cash for you over the next couple of months, I guess? The manufacturing facility expansion, it's essentially on the specialty product business line. I would say it will help to support the growth of this business line. They've had very important growth this year. They were maxed out, so they had order they couldn't deliver because they were capped out. This should help to support the growth of this business line. In terms of WTS, it will reduce, as you can see, as Frédéric explained during the presentation, a lot of projects are now in engineering phase. They will hit the manufacturing floor. This will allow us to build in-house instead of building with third parties, outsource the manufacturing of it. May preserve the margin. I hope it answers your question on that aspect. The warrants, as of today, half of them have been exercised. There's been an additional CAD 2 million, CAD 3 million that have been exercised since the end of the quarter. There's half of the warrant outstanding right now. Gotcha. Thanks for that, and congrats on all the progress. Yes. Thank you. Thank you again. Your next question comes from the line of Gerry Sweeney of Roth Capital. Please go ahead. Your line is open. Good morning, Frédéric and Marc. Thanks for taking my call. Hello, Gerry. Question for you. You mentioned the Biden stimulus plan. It even sounded like you expected some revenue coming in the next, we'll say, couple quarters. Have you seen any material uptick in conversations or planning by any of your customers on that front? I would say it's still too early to be mentioned that we're seeing it on the tangible. If you look back on what happened in 2008, it took several quarters/years to see these projects being developed. Usually they go first into engineering phase, they hire the consultants to do either their upgrade or plan expansion, and then before the project hit the streets for construction phase, it usually takes a good 12-18 months. Okay. I would say, Gerry, it's still a little bit early to see it. It's a general trend. What I like about that is that it shows the emphasis that the government is putting towards the water infrastructure in general. It shows the need to invest into this area. It shows and then all the surrounding needs that is required to operate then these plans. It creates a whole awareness issue around water and wastewater infrastructure maintenance or growth. Got it. It's a little bit early to see that results. Yeah, I apologize. I think I misunderstood you on your comments. That's all. It sounded like there was something a little bit more sooner, that's all. That sort of fits with my expectations as to how this sort of rolls out. The other thing I want to just, sticking with the longer-term opportunities, you did mention that food and beverage on the O&M side in Alberta. Is there a longer-term opportunity to go direct to some industrial users on that front or even the food and beverage or other areas, as opposed to going after municipal players? We're trying. We're trying really hard. Believe me, it's a key area of focus. Again, not that we want to neglect the municipal area because it's an area where we're growing, we have good visibility, but we're taking solid steps to be more active and go direct to industrial customers for both the systems, the service, and ultimately the operation and maintenance. Yeah, it's an area where we're very active and will remain, continue to push it hard. Got it. The final question is, this even dovetails with your comments on reinvesting some capital back. Obviously, things slowed down with COVID, and distributors are a key part of the business plan and revenue expansion. As we're starting to come out of COVID, hopefully, do you have any plans to sort of reengage distributors who used to do some I don't know if distributor days is the right term. Yeah, meetings and distributors. sales and marketing. Yeah. Yeah. How do we look at that, and has that been a detriment to some of the growth in the past year, not being able to do that? So far, the good news is that we haven't suffered from this. We have been able to maintain relationships differently, so this is good. We shouldn't take it for granted. We will have to revisit these customers. We'll have to recreate what we were successful doing in creating these events and bringing them together and bringing the culture of H2O, who we are, what we do, and how we're taking care of our customers. This is really, really important for us. I don't think that we're going to travel as we used to. The world has changed. We're going to ramp up and see more traveling expenses coming up again, but I'm not sure that we're going to go back to where we were before. There was years where we're doing 48 shows a year for all the different business lines we had. I don't think we're going to hit these numbers again because we're doing things differently now. We're using more webinars to stay engaged with our customers. We're doing things differently. If there's anything, yes, customer distribution, we're going to have again these events to bring them together. Got it. Super helpful. I appreciate it. Thank you. Thank you, Gerry. There are no further questions at this time. I return the call over to Frédéric Dugré for closing remarks. Well, thank you very much for joining the call, and again, we look forward to catching up with you for the presentation of our year-end result in September. Thank you very much, and have a great day. Bye-bye. This concludes today's conference call. Thank you for participating. You may now disconnect. [Non-English content].