CTIB - Earnings call transcript Q4 2021

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Operator

Good day. And welcome to the Yunhong CTI Fourth Quarter and Year-End 2021 Earnings Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference will be open for questions. This conference is being recorded today, April 13, 2022. accompanying call release morning. issued press earnings this was conference this The

Schwan. the CTI’s as as Jana Yunhong today, Chief Executive Officer, On is Cesario Chief call Officer Frank Operating well

that Before you in we company’s release. press earnings want begin to the should the forward-looking we read statement note

to EBIT that During as today's and such, company's financial these bases comparable events predictive risk financial operating company's a and on statements results certain note non-GAAP measure and assumptions from release make da cause also performance will -- The directly or risks measure, statements adjusted current and Please that or earnings its its views future company the as company reflect that call EBITDA, factors some results. actual subject measure. future about the that The management GAAP no loss. uncertainties. most expectations an XX-K views net could Form it income important adjusted its performance make of differ certain to the that are and predictions. press financial in reference most believes the The with company to to

the filings For would Exchange Officer ahead. Yunhong refer release please Frank Chief to company's to turn go Cesario, the periodic to CTI. please press Executive like of further At the this with information, and and Securities I Sir, the earnings Commission. time, call over

Frank Cesario

you morning. talk our everyone and Normally, on thank financial joining of Good would expectations. call Holly. review we And about you, with Thank today. for our start us performance

of the business. going like first, in later challenges forward for overcome our to and We the direction financial performance the will provide overview an of But I'd some our call. discuss

ride I'd end As a to statements run It's like past disposition of start subsidiaries, of complicated few with XXXX been financial the quite with losses these itself. years. on the business was of the a

different a over same folks expecting over about and doing and result. what say the know thing You

expect. and selling During should and lender about and were in $X as of to be. the clarity Thanks on much to we we business level sales we change the could a latex businesses pay million Group, business Mr. to China business an in only position. performance. one dramatic like tough cash owned associated million we these that much cushion our facility able to significant for debt went supply businesses the required to not violation credit in XXXX, out Why be Mexico. trying debt was I'm question That's once it sealing each But talk subsidiaries. profitability Make and proved we simply made Transforming flow write-downs products. with too what the the distribution required. But not of and needs to knew vacuum period, a was And disposing today. to should Supporting had good to what mistake, We exist. roughly we'd achieved CTI bit leverage terms each then the far into And high. this and of piece to why? challenging to continue. happen. We The hit was us $XX a thought the unable for was offer to We were that was entities leverage goals. a our We burden line of of overtime, every from owned our balloon hit We offered revenue UK but as say million unrelated Lee worth Germany. manufacturer financial required areas $XX the burden. periodic too strain support we our The these and our and Yunhong saving? obvious these own Guadalajara, would pleased there's continued significant no was in a future forced a of support of cash these is company's that of had avenue down successes reasons

designs. ground eye and balloons, need has than how out how offer to film XX we and When latex different balloons almost those Every film that profitable base items. latex most take weren't the catching going new satisfy foil That's in effectively our department to line and foil It solid requires we developed Chicago kept today. We happening, the We in expand retail in developed customers base provides fails in We CTI related a based in-house strong our of quality, up engage the the look challenging to is packaging retailers way very blossoms relationships. our We a in and foundation film, candy products world. about distractions something. packaging had demanding years indication that grow. do gift sometimes we creative company to generate know all about us and shy is all to couldn't product But did. saying ours producer other we keep bottom an of program strong never a We the items. certain knew to were we to balloon produced and strong supply For more area, advantage business the varieties paths excellent sold Mexico. reaching Well market. those to well top-line.

our we'll that. to that an North up. only know new in It our Asia Our the Yunhong provide in people comes At having same is provide qualified to what will and save a direct to to looking products them how make does believe marketplace. China local experience sourcing time, our believe smile, product engage offering as around the value designed expert help and help largely I market people with We Group more well. to company have American the manufacturing lean to products Along can got retail.

XXX have nearly customers are now our come that to more. But manufacturer on. U.S.-based that are rely We we

have area, millions was issues forced investment and share the every thing Chief are That proving it From need of to to all related bought family. The level, stockholders Schwan a of dollars Yunhong the our qualified Operating I'm do. of and down We COVID related we obtaining XXXX to to Officer and shortage pleased right subsidiaries the was chain here helium write-off committed own this Yunhong Jana? we've recent in transformation this or to equity. employees, inflation charges cash supply our are challenges a success to adapt. to to into Jana been challenges we team as load of essential maintaining healthy fees a avoid debt bit while to bring it reasonable member broader

Jana Schwan

Thanks, Frank and hello everyone.

in managing hard of the payback of as cover reliably months line. it now by and our a line. was nine and human robotic This I'm control After have in We headcount a manufacturing working a the calculate flexibility had from modest the while the we of process manual maintaining regularly takes converting automates a local we issues Think partner, One area. occurring have and can about arms, to share market. critical lowering the on quality our years better strategic resources features investment through of amount our needs. the per labor three investment that this we our on our and line. made to folks pleased breakthrough operating significant teamwork work, After a have in work we from tightness this engineering

is that line. are Now to working our the first on expectations, second up working line the we

flow, order maximize Before that long we adjustment seasonal and should to has six made on been advancement production be flow. One our other to in is apply investment personnel change to able an our converting production seasonal to lines. our production

it -- -- would large It's our graduation, managing challenges. by costs. manufacturing, leading time. production some in We anything be Valentine's we in up shape through everyday About of demands temporary working. the fall adapted the because good then type With two manufacture during these trained without spike. can for many Day continuing has being other events fall efforts change terms earlier spikes business is a staffing in period is a meet longer Frank? retain good up allowed by us staff labor and the In of reduce make past, doing find year, in the fall three extraordinary of and our we have end staff Mother's Valentine's a Father's workforce Day specific of and for to better happy staff so We celebrations CTI of part have Father's years people Yunhong Day of again season up grad difficult half today. This and Day our Mother's ramp reduce it seasonal Day April. to driven approach After customer the events. to combined. the very month, then these I'm train half and and we for in then so as Day, the starting to for products of for we

Frank Cesario

aren't business Thank we shows That you, how way. with as there's usual, better particularly believe satisfied a Jana. when we

into our expanding our commit will you full sales expectations with but that actively channel, assets for to will plans to lever have we value. manage better I more We accountability we throughout. risk,

$X manufacture, income million selling increased our We increased from as a charge shutdowns Flexo that loss of something our roughly net an customer $XX other Universal was income will continue and currency and noted the million about our to million only XXXX Revenue of level time $X the smaller demand. financials. Now customers recur. to its can recover better. note comprehensive largest this latex recovery then to related appreciate Please that over even in that just becoming recognition at the Mexico, not accountant

we to to understand. easier Going are forward, committed being

show without U.S. Now be our business clarity that performance freed have external there. its operating elements should that can and we

substantially is reduced. Our financing cost

We have costs largely increases. inflationary addressed

continue Holly, our the and CTI challenges, of limited. Thank part we fun any have can we we We questions what do. company won't for the freight rest may until you demonstrate And for to please? Yunhong part. now being address shipping

Operator

coming gentlemen, and live. the Colesani Instructions] today floor your Michael, Your Certainly, Michael is questions. now for question [Operator line open from [ph]. is ladies is first for

Frank Cesario

Hello, Michael.

Unidentified Analyst

together. know able terms lines see insight line that to turnaround. you're you and you, congratulations coming is I Hi. Good I morning, opportunities love these expect And but if with it future top share behind if you how down growth to, in on some this could folks. coming would now this all maybe don't of

Frank Cesario

top-line. favorite new person. for you asking Thank about me my You're

our to As you There's of we're top-line service we we into resources things We're And target going that we've areas time, back that's offer that that At later the right that with We're doing we think but we the for the for to it contemplated best. can in wrinkle to was products, market. ago. And that not years U.S. I perspective, past sales on think looking built expand the we just to managed that. something top-line two new we spots. can us our retail continue. position a we're investment same expect the work. we good a of is We companies, the see, year. pick do market, done grow dump to a over other going Yunhong grow believe lot when support the And in right. risk we're it growth, better the to function a year. That's now going much to had supply

to and of think So of customers. to that candy more have are us, more of lot out. We a foil things types blossoms our lot solutions known with that to a to entities providing good customers, we balloons between working to more types to shoot providing gifts

And how very up. see to so we're that shapes excited

Unidentified Analyst

Thank you.

Frank Cesario

Thank you.

Operator

next is from is coming Instructions] live. your Mike Suneco [Operator line [ph]. question Mike, today for Your

Unidentified Analyst

you I ownership, just had employee accurate. key not or When a board at look I'm quick sure question. if it's ownership

on or the of old data be inaccurate. is much So CTI

employees, If of see stock you or that from buy they of Yahoo employees a belief and company. look ownership on the blackout more market I and And making a to? would any to When know in I more love the the internally come you have back key I of overviews periods. want members company. just can if Finance comment the to board

Frank Cesario

Sure.

numbers, announcing do for the we're through days true after entities end are the barred can -- results, job. doing better from a for an our because couple have of I I filing, where announced. is those the very very, of anything. now most blackout a been QX. this entity until normal goes is now XX-K And think results we So in quarter, We as are means late in and from even process, for we end But think a year everyone the and that in this

And is so QX finished.

May, open up. when And so that's report we when QX things in

that over is tremendously. is share I'll that our facet turned other The entity

his were employees have five retired. company, at look years ago the shareholders who If with you dominant of a they couple of

lot new have investor we group, involved. a a have more people We

very, from it, what look long will so not it very look And you was it at when ago. different

Unidentified Analyst

Okay. I question. have follow a up

can and material inflation costs as the confident costs, you're far raw pass to As consumer. that those along you

Frank Cesario

To customers, a raised. prices we be our their have raising And it. the wants made have push. look, huge to to They the guy have. We've in do No wants nobody room to one prices.

the we out price looks the At we And to majority all vast be did our like. maintain some a we if world that for price correctly, it. And the okay, many customers. partners will and business looks of business healthy sell going customers And structure of have margin, pushed because do customers be this. just too we said, far, that, like way understand held our lot it's and deal. you're and understand. If We've don't said, years, to we of through. the knows that healthy, profitable. the of a you we new same And we time, price lot about wasn't Everyone people And we hear sell value. we a what the went our part respond lose

So with frankly, that. I'm good

perform. I is additional was customers. will I and them passing company been think in eye those So to to It and our on looking ball. believe we've can't a on not But the all that through in, easy. you, our I margins can been Because, keep tell we've successful, successful costs we fail taking

Unidentified Analyst

Thank you.

Frank Cesario

you. Thank

Operator

for coming is Your Hamilton from next live. Glenn your is line Glenn, [ph]. today question

Unidentified Analyst

guys Hey, to Frank. to you talk again. Nice

least the Here's I be nice just those in and income be and or great [ph] my SEC, see your and all the road, question. basis. quicker don't sheet, to NASDAQ regard, find a transparent deep to of any information. It'd that down going instead on balance

that's just So [multiple speakers]. my one

Frank Cesario

more. have statement been to have our the already. my thought commitment disclosures. agree tomorrow. couldn't every income we forward going I to because is And I complicated, One, traditional think would quarter, you frankly, sheet This was time we're going forever, XX-K filed it's balance And

the have us whole so look, made last a And that will all under zero not of deconsolidation harder understanding of the lot people a time say, of charges will discussion. without

you'll tolerance. more through going So of sense level more to don't for have last this because in starting so many summary. the what business we lot disclosures. a And year, traditional everybody But high clouding did their they're things end QX, we the we thank see U.S. And doing. make is

Unidentified Analyst

Can a here? answer. follow good I have question Okay, up

Frank Cesario

You may.

Unidentified Analyst

maybe on this name primary in a not maybe of called discussed that. chat with a Yunhong Why in Chinese it negative a You CTI of incidents, lot a there's of boom, still this I negative whenever with Industries, and -- and price be a news and being subject connotations still the the can't with again, drop still they past see our a China Because owner? I the overall, and people so CTI is consider touchy I'm rooms lot have lot have? it's company, in you

Frank Cesario

is different It a animal. change, right? It's a

it in in of the is people all other our our So with are having you're connect frankly back broader add our company know In operations and investment, name any the other to way. of words, attached from a the group. XXXX to customers are not -- that. $X our name it million we is paperwork Yunhong to investment, it's in U.S.. to done in Yunhong investment, was the committed It’s was U.S., to name change an done And U.S. beginning done the our

have fact are. somebody's they card haven't business available labels as My CTI So a both CTI because office, changed. both of Yunhong and we Product has in into matter are Industries when we both, we walk worlds.

Challenges, a world. have if react. favorable, we good. now. We I And But foot maybe becomes people is that understand in China each who that'll some be are

But who But are connectivity make And of that group. being with a we so investors, being has that's where broader a who it. are. Chinese U.S. to to we are we proud are. We're company no mistake, committed

Unidentified Analyst

hear from thought strongly one And feel one know The know and more [ph] of that. about you they previous was insider I me. periods, how won't opinion. be I Okay, stack, of talked them me you blackout looking shouldn't director shares XXX,XXX my purchases, XX,XXX But more. anything saying I caller, et board. has My independently $X investment to cetera. about own we're over on each they That's and can't the to add group shares

cetera up has stake game that not to ownership, in year the So et management besides see dime. putting grants I’d getting a a every like

a Frank my Jana observation. and doing great just that's No and more questions job. you Thank for So

Frank Cesario

certainly Well, team. thank share our I'll you, broader And that with Glenn.

I know, will. You

Unidentified Analyst

thank you. Awesome,

Operator

Instructions] are [Operator to for queue. hand further would comments. over in There the I questions call closing to no any like Frank,

Frank Cesario

everyone transcript Yunhong you, a replay on Holly. appreciate lot. And we proud guilty to later. a you you and XXXX. call. I for But as or story. easy being of we that roll folks And the in of lot will involved during the Thank know we CTI say do a the We're the believe, that we thank read story. again, out I'm certainly understand of catch be lot more being we'll think

to talking this to to And forward becoming look a you look month. I I habit. over in forward a now just So

you thank all. So

Operator

gentlemen, you. Thank Ladies this does today's and conclude event.

you your phone lines at have this disconnect You for a And your wonderful may time. participation. day. Thank

Yunhong Green CTI (YHGJ) 13 Apr 222021 Q4 Earnings call transcript