AIRI - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to the Air Industries Group First Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note, this conference is being recorded. This call and the accompanying webcast may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date of the statement is made.

control based a our uncertainties, number which beyond are are expectations some statements predicted are to be subject of our forward-looking largely company's on and of or These quantified. cannot and risks and materially actual contemplated forth underlying forward-looking differ or those statements. set Future developments could from and the results in, by

to In insurance be looking offer forward prove a to any that accurate. shareholders. constitute company's these call purchase information consent, and not agent the designation there uncertainties, a a risks of with nor the light can respect no does This solicitation to be securities proxy, of or will meeting an of authorization

go to this the President to call ahead, I over Please Melluzzo, sir. now At time, like turn Lou CEO. would and

Luciano Melluzzo

joining Thank Thank for you, today. everyone, us you, Shamali.

first the saw of quarter we last growth year to to compared quarter well fourth XXXX of achieved of as revenues the as compared first as during quarter The revenue XXXX.

order we remains and strong. More and importantly, opportunity continues the the experienced fourth of year flow strong last quarter during

achieved and increased $XX.X million. our of million We to backlog $XX.XX bookings

book-to-bill X.XX:X. quarterly strong to believe has which the Our to difficult new divided continue exceed quarterly the is our we predict, X.X:X. that with book-to-bill industry timing and always QX activity overall started fiscal annual will sales XXXX net given is by quarterly I standards in bookings opportunities ratio, was simply see, of ratio

order an announced million we for components. and today, closed $X.X market the a BlackHawk After XX

other come issued the have customers from received. to from we realize million our Our already buys agreements, funded spot expect backlog orders funded funded of net and long-term future we represents contracts. sales $XX.X These orders by

sometimes XXXX, our agreements total awarded include as that does funded other March not the XX, referred million. as long-term contracts. orders. to orders you $XX.X existing orders was possible value including to our Unfunded and of step of important a back, us backlog what $XXX.X understand is of future represent to When take It under unfunded backlog million is contracts

future The $XXX.X our validates million amount key that provides customers. our we with some partnerships visibility revenue and into multiyear have

remain Importantly, to as opportunities close. earlier, several I large mentioned we laser-focused eventually on we expect

All in year that a will fiscal XXXX confident be growth. all, of I am

turn I'll over our outlook up before back some discuss closing to me who XXXX and it let answers. more our proceed. to Scott, the questions QX Now specifics call to Scott, may be will commentary and a bit results. on opening add

Scott Glassman

Thanks, Lou.

remain a we mentioned, Lou confident growth. will of As XXXX year fiscal be that

results. ended $XX Let discuss achieved the million. were me our March than $XX.X the quarter Consolidated of This sales net was in XX, XXXX, higher we first for XXXX. QX million

it $XX.X in fact, was higher in of million the we fourth even than the quarter And achieved XXXX.

not caution annualize to everyone Although any quarter's I results. particular

at current had capabilities XX%. our XX.X% compared quarter's of which that you staffing sales percentage QX as sense in It Gross to a shows our we production was than profit achieved XX% This current lower than XXXX. in XXXX was QX a was as achieved in of the sales what levels. we XXXX, of level QX

new several by impacted products. were margins gross our quarter, This

experienced our also lower-than-expected incurring in We manufacturing hiccups hours. some specifically facility, Connecticut

million very that confident of QX later QX XXXX, as similar. improve to and When products. Operating our operations compared gross am metrics I However, were refine expenses we margin in our the XXXX year accelerate $X.X these sales. XX.X% were will in of or

as down $XXX,XXX by $XXX,XXX QX profit XXXX expense the Interest lower to loss, in QX QX compared $XXX,XXX. XXXX. was loss $XXX,XXX, compared XXXX slightly gross in was XXXX of the to largely Our driven operating QX the of

is reconciliation respect loss to of in to our compared XXXX was A $XXX,XXX. metric we quarter XXXX. press With compared included evening. line, $XXX,XXX $XXX,XXX Finally, of loss on to the financial in generated release issued was in XXXX bottom EBITDA, detailed net the adjusted $XXX,XXX this that last for non-GAAP QX

quarter $XXX,XXX a the quickly We sheet. let finished the highlight few cash. Now on of items balance with me

was slight level debt approximately Our $XX,XXX,XXX, a of XXXX. increase QX from

As coverage ratio facility Bank. credit meet our fixed of charge XXXX, unfortunately with Webster we our in did March not XX,

terms how required However, are QX all million, to of we $XX.X was and receivable million. principal Webster are XXXX. better payments obtain similar or did pursuant make quarter to amounts credit the $X operating of requirements. financing Both that was inventory Accounts and we adjusted at finished the new very with working to our end facility, we meet

Lou? our And call with Lou the for closing an business I outlook. back to that, XXXX on will some and update turn remarks

Luciano Melluzzo

Scott. Thank you,

some the provide challenges in me profit gross with on additional Let QX. color

number began we time. customers QX, development at product new Gross During margins be new a of from the of initial at same to a programs production stage new tend lower. on the

products not XX%. we is efficient how we that the as the us knowledgeable to to times to become time, cost Historically, become our XX% more as cycle improve we product, are more belt, our matures. and under uncommon these production of produce about it production reduce The good is reduce once for news upwards product

for of confident will am year a of being we be with fiscal and our in growth. be And that XXXX. than our yesterday, Form an with 'XX the the pleased filed to least typical XX-Q performance, day, in better targeting all XXXX At the with million XXXX of that still end at sales disclaimers SEC fiscal considering are $XX EBITDA QX adjusted I I the net the am

as progresses, provide year the intend we to appropriate. updates As

portion the can turn Q&A over of Shamali, up the let's please the Now you call. open for lines? the call

Operator

with line of And from Halpern Taglich Instructions]. [Operator our first comes question Brothers. the Howard

Howard Halpern

to start good and afternoon the year. Good

in forward, technology time For the we're operating see to -- your first going -- would that the as quarter, for of is going the modeling expenses to continue area a basis what and upgrade that would business? cybersecurity a you on information

Luciano Melluzzo

year. QX, would I expenses slightly of the anticipate in remainder be probably were probably I So higher will operating the -- that say than for the

there, indicated. as you in additional are However, costs there

than need the government us as IT in the things be cyber contracts For and to we as the just be But future I that are general. that they technology business in periods. higher make upgrade various a to think would compliant wouldn't with

Howard Halpern

Okay. terms talked about in program a that And new of you in QX. it began -- was

Now sales quarter? be quarter to that Or going fluctuations there margins you quarters. by continue help program, up in ramp is still as deploy but it new was some drive throughout that will the will -- to it,

Scott Glassman

that the said, that as any I lead Lou higher and time product we of our more would typically progresses, believe care course, add to color will a cycle see reduce, As you margin. Lou -- production matures, to as time to would, that that?

Luciano Melluzzo

from a all clients. the quest, been XX new successful and business on we've know, XX development Howard, new been saying at real Absolutely. new along, as we've product you been last to in And we've bringing and months.

the what's all lead is we're at material, showed this I up X.X time, of it, time. has So year, think aware all happening a it and X years some same of months,

several they'll expect So initiated and year, and X, are to course of shipping -- we all be we to of LTAs got this throughout out we've the projects this time. the year, And on had years. go that go we product X at X beyond one some that these

well. QX gains from the have and some as seeing product last in start year we'll the developed we end of So that

Howard Halpern

ramp there programs some to some time, always you if new from will in. and And some then follow engaged on will we of based to start-up see I new will, be it's the be guess, Okay. on time program, that fluctuations a

Luciano Melluzzo

That is correct.

Howard Halpern

it's as raw issue And behind? like materials the Okay. now, of seems pretty much

Luciano Melluzzo

that's seems getting some On like in but causes especially really mostly the still beyond mean day-to-day, we're we're our material. us most of XXXX. aggravation managing product, important It I that us. ones it

I material And in-house so have all I far this had year. year last more than

the hopeful continues. that's that that's So a positive trend future, we're but a it -- you can't very just predict

Howard Halpern

-- -- deploy you that what they customers for their from your goal seeing -- seeing and and is potential you're are have budgets to And your spending you're capital? producing new from customers to

Luciano Melluzzo

seems forte. the years. we government government lot seeing last of COVID rent was saw like in that a we're stuff -- more it our more outside the get the don't than couple space -- was allocated Since of with the from that for spending stuff Well, just we involved government activity hit, and is

spares it we that opportunities like But lot programs seems a for just getting with. now involved more do there's on

seeing XX%, several new our that. customers in up of an uptick in that XX% potentially we're make We so brought business. And

So we're now. going through the curve right of producing product developing and product

produced strategic that commercial, a at of was last plan we But end our it to presented the seemed Board. year

following XX%, XX% that plan we're -- revenue a we're comes our so programs. had from of And as military. plan military And well that you're us predominantly to aware, T.

COVID but as thing such a starting there was And the back. during to was commercial no make years, come commercial,

there. pursuing work we're to that there's pretty So as well had heavily because be

Howard Halpern

business going. last one move is or progression the to submarine just And the one. Okay. the How

Luciano Melluzzo

Slowly to but surely, it's new us.

litany the you the have materials It's as proper produce, things we react fast as a moving there's you are the cutting differently the I not is part than to we address accustomed moving try about as it react. to development, go, but you're materials when to just and like tolerance of how going would see materials a to. just that along. along. So way aerospace as It's It's tight all it

Operator

have remarks. Lou the turn we back the the closing call reached you. Thank for of to And I'll a session. end And over Melluzzo question-and-answer

Luciano Melluzzo

progress Group. and for forward next the on We being call call. conclude Air at Shamali. point, everybody, your today you, you, in Thank this for Thank you on updating call. the Industries the interest may look Shamali, to your

Operator

conference, disconnect your you for this Ladies time. concludes your you and today's and participation. this Thank may at gentlemen, lines

Air Industries (AIRI) 16 May 242024 Q1 Earnings call transcript