OCC - Earnings call transcript Q2 2021 | Optical Cable Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Maria and I will be your conference operator today. At this time, I would like to welcome you to the Optical Cable Corporation Second Quarter 2021 Earnings Conference Call. [Operator Instructions] Thank you. Mr. your begin may you conference. Palash,

Aaron Palash

this Maria. Terrific. earnings all year press and have At you release issued morning participating Thank XXXX copy on the call. fiscal you, for quarter Optical thank second should today. Good Cable of everyone time, earlier conference a Corporation’s

a visit can also copy. You www.occfiber.com for

call the Officer are and OCC Tracy and today Financial of Vice Chief President President Wilkin, On Neil us Officer. Smith, with Executive and Senior Chief

morning’s of call like future factors statements Before due forward-looking to remind call Cable to Wilkin. today’s may we turn limited press this begin. and release. actual contain factors number and over Internet that the the that call. The will Corporation I’d Neil not but results referenced as to, risks in involve These of begin, the including, With apply to this forward-looking a well materially contents the statements on to of everyone statements those Optical risks, www.occfiber.com webcast I as please may that, cautionary uncertainties. differ of Neil, section

Neil Wilkin

Thank few you, will of some remarks. morning questions Aaron and X-month review begin many your I ended for detail. XX, X-month additional then Tracy’s as results second the opening the quarter Tracy will After as with answer today periods and the call in we we will April good a everyone. XXXX can. remarks,

questions will take we normal from and is As Q&A practice, during only session. institutional analysts our investors the

reopening included steps team press announcing taken market time also and in second submissions hard reflected submit call. and the we business, regarding questions our advance protect in position strong subside. to the of more work high a by OCC’s of lifting the And our restrictions of continue we quarter, the in the of will markets level, markets. and our positive as depth, certain offer company today. of many opportunity release in the had sales are in Tracy our that pandemic. on earnings the build we our Instructions moved to date COVID-XX from our we results of negatively this have at place through to the impacted However, some quarter indicators benefited as effects to call our net speak our such the pandemic succeed and to but quarter the of shareholders the been see in the the

ongoing. to steps efficiencies, taken and control are which efforts have we Additionally, improve costs

growth agreements This quarter, two and our leadership signed we important industry trajectory. that demonstrate

certain to a first contractor of supply products to Department defense OCC’s a U.S. The proprietary is Defense. contract major the for of

its for begin and of to U.S. we brave our freedom. by third were products products substantial manufacturing our history be proud innovative the expect that we fiscal and applying our humbled manufacturing we these support year. the capabilities fiscal military continue and part next OCC XXXX in and supply and of and once again to protecting designing to women men do technologies is We quarter will the to into believe now the products of manufacturing own

of We and relies count our forward to which and are team dedicated delivering is for to of our number OCC products which military solutions all us fortunate known. a on and among veterans the look

allows communication, agreement both addition both OCC technologies. in CommScope, both copper to valuable CommScope our of The The second, portfolios. and agreement data portion the implement and an patent cross-license certain related our patents connectivity in-building companies’ relates to intellectual wireless of other to companies patents access is agreement cross-license company’s with to patents. property, to The licensed and

users from are beneficial the relationship in than confident long-term and short-term our a CommScope will with more shareholders. continue it both for benefit We This and deliver efficiently growth across customers ongoing to enabling are pleased that to to mutually and organization. our and and to operate more XX-year the benefits OCC for control past positioned business quarter, and future control development sales, to continue initiatives, expenses be cost we

expect in environment. benefit our line from we in strengthening continued economic the markets Looking improvement with to ahead,

I XXXX additional a deliver confident And for products value call half detail that review is of who solutions in are of our customers our on we shareholders. execute over year to to year the second and enhanced that, We will OCC financial with results. strategies as poised fiscal will with Smith, strong for second provide mission-critical our and Tracy quarter turn fiscal our

Tracy Smith

second X.X% the you, second XXXX. sales decrease fiscal $XX.X compared same million, sales in increased the of to the second slight $XX.X fiscal quarter carrier fiscal of of markets half some certain year last Net in to net year fiscal to period compared net reopening restrictions of quarter same quarter second last been in the $XX.X sales the negatively net including markets, net quarter increased X.X% year States Neil. of wireless sales to net of to sales XXXX United Sequentially, and customers sales second the Consolidated of period the XXXX our to impacted to the sales were of net year. States enterprise XXXX XXXX increased the XX.X% compared the sales quarter XXXX. customers the XXXX both and of first quarter in compared the the second same We of $XX.X for of million fiscal the and for XXXX net sales in Consolidated increased last positively of that COVID-XX of specialty for the $XX.X were million XX.X% year. increased to Thank by compared of net fiscal by impacted the fiscal during United the for for quarter market year. outside a million sales Net listing period pandemic. believe had year year fiscal million first

fiscal in in second in second XX.X% to in XXXX, quarter fiscal to first of the profit profit in margin XX.X% half quarter the an the Gross a net in first profit, first XX.X% of XXXX. increase gross or second of of percentage was compared of million Gross XXXX. Gross XX.X% of compared the half second of the XXXX to first million $X.X of fiscal XX.X% million the Turning $X.X XXXX to increased increase fiscal of quarter XX.X% to fiscal half fiscal compared to gross an of fiscal $X.X to profit quarter half sales in as XXXX. the margin gross million in $X profit XXXX, of was profit increased XXXX. the fiscal compared

our achieves as certain are at fixed This sales higher levels when which profit the particularly manufacturing levels, company beneficial positively spread fiscal in is higher net over higher Our gross costs profit sales beginning second margins margin, tend sales. to be quarter. leverage, gross impacted higher the operating

year Additionally, of manufacturing we achieved the improvement due second increased fiscal initiatives. XXXX manufacturing to quarter efficiencies during

year. fiscal first a first XXXX, XXXX. the half to quarter the last and half SG&A employee-related as percentage the the other costs fiscal period last second a basic for per net million million half for compared to result percentages same quarter was to income of $X.X of of initiatives. basic of the or and quarter second loss are heavily share income were mix per per impacted diluted profit and XXXX net expenses million XXXX for last costs first to positively decreased of compared product mix were $XX.X XX.X% second margin compared basic expenses based to million on per fiscal of recorded fiscal costs, net and reduction net share half for fiscal of the gross of OCC and for SG&A the XX.X% first diluted XX.X% compared share $X.X changes impacted basis cost SG&A per period second XX.X% XXXX. quarter fiscal to million $X.XX decreased were diluted $X.XX by costs share decrease of Our the half $X.X in the fiscal to of XXXX quarter sales a of percentage in pandemic. compared a decreases of half in XXXX XXXX quarter share our year. first of recorded and XXXX. period same certain $X.X COVID-XX SG&A XXXX $X.X also second in from fiscal during in XX.X% to upon The net $X.X debt basic second compared XX.X% fiscal million first of expenses or by expenses $X.XX sales $X.XX product control XXXX. a fiscal quarterly or net employee-related during and the OCC in primarily ongoing The vary the and quarter-to-quarter. the compared SG&A to also the the year other the of in for as or during million expenses dependent bad on expense of of $X.X in loss the may million of diluted same fiscal

the totaling refundable fiscal amended the employees for quarter totaling Consolidated refundable and credit Plan results. it which Rescue quarter $XXX,XXX, American or are pandemic. keeping $X.X Appropriation for calendar remainder XXXX of additional of XXXX, tax the be on as Credit on receive during approximately During the a to Act will OCC the of payroll XXXX Act payroll that expects Employee XXXX second ERTC CARES Tax second created their Act of for The determined of third fiscal the Retention qualified credits qualified and of that million. The year part the payroll tax quarter subsequently by OCC’s company XXXX of reflected the then credits COVID-XX by businesses

revolver we As million April $X.X $X.X our of borrowings million outstanding credit. XXXX, in and of available had XX, on

under loan our the our million I’ll $X estate balances had that, Neil. PPP loans of also $X call market. We on With back and over million to turn term outstanding real

Neil Wilkin

participants And any as only Tracy. have them. you institutional Thank we’re could live indicate to now they you may please you, again, I investors. we’re appreciate the instructions analysts questions Maria, our from answer have we in it. if to and have, questions And if happy any said taking for would call questions, before,

Operator

am showing I And we time. questions Instructions] no this have phone at [Operator

Neil Wilkin

questions you by Aaron, go over that call, any to please? could the been submitted shareholders individual have prior

Aaron Palash

questions Neil, do by I shareholders. few advance were submitted that a have non-institutional Yes, in

and historically the has used hybrid headed? FTTA The first, your Is suitable is products articulate could line line you it products applications? where CX-Series where been for cable

Neil Wilkin

including Sure. CX-Series cable Aaron. number cables. a fiber Thank OCC of its you, optic has offerings,

and offerings. are having Our as is fiber-to-the hybrid fibers from and benefiting applications optical I used but LANs, copper conductors applications, such security industrial they antenna OCC also in those think various also include optical and And cables applications. passive

website, our it’s way not products Typically, on developments. we include – recent to an our since our more custom-designed FTTA that are by for have of of these do just be some tend information, been product We customers. our important part of offerings

do capabilities we However, products significant used targeted have in the in and market. this expertise

Aaron Palash

Thanks. Great.

in question, labor manufacturing. there steps in seen Next and from skewed increase year in have added the towards to being address you the XX-K, the that an taken ‘XX, to has appears been disclosure the challenges the with Roanoke address company job fiscal company listings the Can market them?

Neil Wilkin

to There is sales many lot the as preserve possible, year. to volumes. like And as of were began, did we made the we – the during Sure. on OCC hire have companies always those attrition offset and pandemic – we would have do new some year vacancies, any but to jobs impact started pandemic a efficiencies as employees normal to of this for past as production have not effort looking at fill we every

We number And manufacturing. in accordingly, offerings markets. OCC job of increased the haven’t particularly improvement in seen our has

no the wages OCC family together help OCC working of workers. but can believes we in that development – as continues you pulling environment and that to easy, think is other particularly enjoyable a of been operate position we than think a We and workforce was to see, do last during benefits. in to the supportive are ensure And in more to demonstrated offer family. capable where of of the We part OCC a part And have it this see people pool that I year an skilled it’s challenging as each new and pandemic. have efforts strong news, employees, time during competitive of it’s so. While, a been strong states recruit hasn’t there

wane. because is to team. demonstrated OCC Just resilience incredible resilience the – so OCC And so They positioned of it’s begin of during difficult effects the times to strength strength well proud and see difficult the incredibly begin some that and of as times. of pandemic we that

to although able bit to capable problem little recruit So see are of But we experiencing, the longer challenges in immune others better we are short-term I believe term, not positioned. that a don’t being a employees. certainly, some

Aaron Palash

Final protection end plan stockholder company fourth the Great. the a agreement new question, on of at the does rights adopting quarter?

Neil Wilkin

time, this plan the issue. Thank appropriate Board get of you, at think shareholder Aaron. Directors renew on whether for At me to it I speculate ahead be the of this would the But rights address or will don’t time. protection of to course, appropriate Board OCC’s

Aaron Palash

the Terrific. question. final That was

Neil Wilkin

today. we Okay. second ahead and have listening to call. more we to I quarter any don’t questions, would thank will go conference for adjourn like Since call the our everyone

appreciate your to in continue Thank stay safe. you all interest Corporation, very Optical As time and and we I always, your much. you Cable hope

Operator

conclude does Thank today’s you. conference gentlemen, and call. Ladies this

disconnect. now may You

Optical Cable (OCC) 14 Jun 212021 Q2 Earnings call transcript