TPCS - Earnings call transcript Q2 2019 | TechPrecision Corporation

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Operator

Greetings and welcome to the TechPrecision Second Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Brett Mass from Hayden IR. Thank you, you may begin.

Brett Maas

you. Thank

site, today Financial Chief also Officer. on company's call Tom Officer; being Alex the Chief Sammons, This Web is the Executive Shen, and simulcast On www.techprecision.com. call is

claims to Safe in response Before the XXXX. risks contained a Securities Litigation I differ for may forward-looking those financial of Therefore, to as make forward-looking discussion and uncertainties. your and to which Private Reform Act statements, additional the company refer our Harbor filings and company Actual from of statements that in subject more risks detailed management you may management's questions. contain with to remind the results uncertainties therefore, are And the begin, discussed the remarks today, listeners forward-looking we protection SEC. like of I'd may statements the in

to forward-looking Alex performance today, obligation addition, company's Executive the these update November In to that like Alex? call way, to over Officer, XXXX. turn Chief I'd management's of to TechPrecision XX, the as opening assumes no remarks. out of provide statements. estimates or as to the Shen, projections future With revise represent

Alex Shen

Good for thank everyone to us. joining Thank and Brett. you, day you

quarter was fiscal $X.XX was year ago second basic The of per quarter or diluted. profitable. one Net share and $X.XX diluted to or XXXX in net year $XXX,XXX the income compared $XXX,XXX basic and share per income of

driven closely of execution management of clients by XXXX. fiscal quarter second successful to highlighted compared higher quarter and improved have the projects of longer the absorption for with that planning project working levels were cycles. end of returned we the At build on to fiscal margins results specific quarter activity target gross when by Our XXXX, overhead the first second and

guidance new of customer recognition guidance, at Board. allows everyone, model adopted our a us to Financial by new adopted we contracts. the over for fiscal revenue the revenue we reminder Standards our Under most of beginning this of year, recognize issued revenue the recognition the a As Accounting that duration

the Now Tom? to for Tom more quarter turn I'd to like call about financial second our results. over

Tom Sammons

the Alex. compared million same second year second of the $X.X in the decreased quarter quarter for ago. lower when a to cycle The in markets by fiscal ago. million $X in order lower with resulted during increased from compared same flow shift million energy were quarter, Net quarter. $X.X year when you, production or each times to In our slower second Thank XXXX a and quarter fiscal sales products sales levels net defense and the the revenue XXXX a

for XX, because levels. September Our million months sales the ended three September was three of sales $X.X September ended Gross million decreased revenue gross compared for three profit profit compared the XXXX. the XXXX. XX, decreased cost XX, lower and to XXXX, by months XXXX, when ended million months $X.X the XX, September Cost of $X.X months of to for the three

a quarter the to of income XX.X% increased diluted. second principal. per connection administrative Interest stock As net $XXX,XXX XX, continue we general to grants. XXXX. when or $X.XX expenses and compared to due share-based ago year compensation in of targeted months compared ended option has same the gross Selling, expense second $X.XX primarily XX, improved and resulted or basic executive debt increase $XXX,XXX an share Net with decreased unobserved amortize per for lower to the and decrease diluted should levels by mentioned, basic and XX% during Alex increased ago The quarter share was $XX,XXX to XXXX year margin as to September the in three activity income for in returned in September ended and the by overhead. production we manufacturing quarter quarter

For $X.X $XX.X XX, when million to or the sales XX% months net by XXXX, ended $X.X to September September ended million compared XXXX. XX, for million decreased months six the six

ended six million the outside due for principle. six $XXX,XXX expense XX, compared for by was sales September months XXXX XXXX. ended of Interest million expense months approximately we SG&A fees XXXX should Gross September as Total for decrease $X.X September continue the the and by to XX.X% six the XXXX decreased $X.X was September six a the compared to months September six months advisory XXXX. for compensation six XXXX. XX, debt ended for XX, the decreased months amortize and to increase XX% months in September cost XX, ended to Our when ended margin ended expenses XX, primarily XX,

share XXXX, per For per was net six XXXX. an the of Fully diluted of $X.XX million months income September a share quarter approximately count $XX.X is the the based ended $XXX,XXX ended XX, XX, average basic the on fully or respectively. $X.XX and share compared six million and per fully basic year-to-date for for net months share diluted our $XXX,XXX or weighted diluted and earnings with income $XX.X second September and

September XXXX, to $XX.X was at million XX, XXXX. $XX compared XX, March backlog million Our at

balance to sheet. Turning the

We in The $XXX,XXX respectively XXXX, XXXX. Net XX, to that, I at March in million customer more $XXX,XXX. was ramp to cash $X.X Our at milestone manufacturing resulted increased ended the XX, September period $XXX,XXX part to collected With working in million was for turn XX, XXXX. the over the to now September call Alex? months activity XX, $XXX,XXX operations used marked with by year-to-date XX, which cash in used financing was new the projects by $X.X at to increase in $X.X Cash and capital up finished and activities XXXX, offset ended September quarter for cash months expended six in Alex. six will by back investing activities compared payments. cash from XXXX. an in September million

Alex Shen

core a focus where nuclear on Ranor Ranor at in precision, Ranor sector where implemented continued the customers can are arrival June my add requirements. long-term opportunistically of to sector the crafted, meeting industrial and customer to the Since customers These in we driven can by -- truly in defense Tom. truly you, strategy precision in XXXX, core value add value high Thank and execute and sector. specification

continues successfully. proud Ranor to United Our and honored predominantly implementation is industry Navy. serve the U.S. the defense States

the class Virginia On Columbia on carrier. aircraft class Ohio replacement and submarine, the submarine on

XX%. For defense fiscal XXXX, was year revenue

have the a continue Our over other to This maintain to stable the Ranor need team sharp to strategy support programs in to their a viable tactical meet our submarine expressed defense response, customers three on to decades. core execution chain and confidence in is and be supply the teams next within sustained of player U.S. Navy resulting emphasize to fulfill craftsmen for worked expectations order focus core our new our orders. management customer confidence. sustained In customer effectively in customer with enabling us

and questions profitability. remains answers. and I our we at The path clear $XX million orders previous XX, XXXX. grow to growth earnings bottom-line open would million since fulfilled to have with customers up new as As we our October I added stated July be in like towards XX, us expect on top-line from customers. core now forward million in our pipeline to Specific $X.X strong call a This new XXXX. calls, backlog from $XX.X our of for enabled continue to defense business X, orders drive at XXXX June the

Operator

Thank you comes Ross the of from and Partners. [Operator from Our gentlemen. question ARS ladies Instructions] line first Investment Taylor

are You now on line.

Ross Taylor

follow way often you the on. in up you a very which Thank few operate. things lot you. up pick is words said of like Alex to a number I'd I

First, couple you you the fact That's of that new years for in specifically completely guys. for a items, a carrier question. last you are products aircraft now that's business the an of line referenced producing

Alex Shen

question. the an you correct, the acknowledge has X.X I on aircraft carrier carrier Ranor. the been in mentioned before years aircraft first I've now at is time Ranor this been are and I

Ross Taylor

Okay.

So who or nice with built of south? you us away moving move parent whether sub-builder obviously tell New further be a the just England that's is that's Can it really subs the positive company the one submarines. from to

Alex Shen

you can one I Newport that is tell built by aircraft shipyard carrier News.

Ross Taylor

cool. you business looking that fact you commented, said is that guys Okay, DoD not you indicates business, see. to recall that you r well service branches that's something when that I with your are when other have you you to Fantastic Also Navy great -- which recently. referenced predominantly can referenced done the as having

Alex Shen

talk I That's not can about right something now.

Ross Taylor

Okay. I'll a take yes. that as

work You and I've to learned together.

nuclear for the work time. specifically Additionally, nuclear the with for or perhaps idea point in currently specifically containment Energy doing bidding the Are -- you at referenced Department have talked of this in area? you work you vessel about you

Alex Shen

No.

Ross Taylor

doing in anticipate business you area? Do that

Alex Shen

awfully skirting be to That forecasting. would close

Ross Taylor

have to you nuclear simply would that need slow you has fact the playing that It revenue It in very the move that be appears area. DoE build to indicating opportunities believe the capability been that a materials. No.

really have idea which So that you have proper I'm to done of expertise trying get has in them for Ranor past the an the in lapse. you area you for or past. them many have the that the It's let the and done actually people paperwork have

-- -- And something DoE? to that's with is burner an close if to understanding so that's or of that get front currently being I'm trying the how

Alex Shen

on not burner. It's front my

Ross Taylor

DoD. of potential gets assume the an backlog perhaps you're area to that When with that opportunities the has I that's to or Okay. be -- some potential doing business that equivalent

-- That be of have So forward form have when those think us that stored. be to some would release perhaps when moves around I said press eventually you for DoE, the do materials with and to moved great it.

questions. clock opportunity effect, I people be guess on a that idea, will later coming back of other And think pass with ticking I so for to of would if my there? there's other Paused Alex. the

Alex Shen

Thank you very your much for support.

Ross Taylor

you. Thank

Operator

[Operator you. Capital of line Greulich Thank REG Advisors. the Our comes question Richard from from Instructions] next

live. now You're

Richard Greulich

you. Thank the a about was confused numbers. I backlog little

XX the September at So backlog end of the what? was

Tom Sammons

million. $XX.X

Richard Greulich

Then as the it was the October. $XX end of was And at million Okay. of June. it of end $XX.X

Tom Sammons

correct. That's

Richard Greulich

for $X purchases regular? the in those orders or more I or -- million, a part million So, of October of were guess those are material $X early that

Alex Shen

I'm at unable this to that comment time. on

Richard Greulich

the orders those area? defense were And Okay. primarily in

Alex Shen

comment to this unable I'm at time.

Richard Greulich

Okay.

Alex Shen

customers and nuclear in are sector. in industrial core sectors, the defense opportunistically the Our precision

Richard Greulich

in recognized XX months. Yes. likely be backlog revenue to the Okay. Everything shipped the over and next

Alex Shen

define It likely. depends you how

think as this far far regularly as and it I be really that to depends. I get question forecasted asked how I out

Richard Greulich

ahead. Go Yes.

Alex Shen

they what may and change change customer things they with want. the So

a very not So it's I idea occur I'm something me not to causes forecasting. that's to occur generally shy me likely forecast. or for so good that from or that to could a forecaster, not away wonderful forecast probably

Richard Greulich

part the or they were With the elsewhere. chasing were I to received it was over you in $XXX two that $XX million -- that years million were of business October, next orders think the

Alex Shen

$XXX The opportunities. chasing million million our were $XX to that we

Richard Greulich

orders that the in October to in areas? And received were those

Alex Shen

behind of idea And million The million specifically. we are that that that And opportunities answer for to true to aim was able $XXX targeted sales $XX that's actually our ourselves true. orders receive that a be hope to result our that. going orders activity what clarifies new what pursued against we've I that at. not I'm in we against. ourselves

Richard Greulich

characterize of Yes. at not pursuit to those transpired you have Would have your point, been any you opportunities that be able this pursuing?

Alex Shen

Can that please? you say again

Richard Greulich

those point Of opportunities $XXX say million are aren't million that ones in or everything months they last the let's are pursuing now in time, the $XX dead over pursuing to the you be end those chase? successful come -- be to and this to five have any a you pursuing is three at not you'll in still you that -- will still or know that

Alex Shen

Well, not answer come specifically. I chase into the new everything the may be in that be question won't opportunities then chase. to there your may very able because back be

Richard Greulich

be rolling go there last, that basis just two million $XXX Well, would $XX kind year Okay. to are able a opportunities to to million that on you of still after? say

Alex Shen

not saying will that. I be

Richard Greulich

Thank Okay. you.

Operator

you. Thank

Our the line John investor. of a question next private from [indiscernible] comes

alive. now are You

Unidentified Analyst

it utilization, what's one Alex the is XXX%, shift? current plant

Alex Shen

I able question. that answer to be won't

Unidentified Analyst

Okay. Thank it. you. That's

Operator

Pipeline Thank Gomes line you. next question Data. the Mark Our Instructions] of comes [Operator from from

You're now live.

Mark Gomes

the Thank much could by at you. revenue full Could you let company? know capacity be how generated approximately us

Alex Shen

I able that. to answer be will not

Mark Gomes

you. Thank

Operator

this turn at I'd the you. time. for no closing. gentlemen, questions floor have we back management Thank like further queue Ladies to and to in

Alex Shen

everyone. much day. very a Have you Thank good

Operator

ladies teleconference for you, gentlemen, conclude Thank today. this and does our

participation and You line your wonderful disconnect may a time. for now at your this have day. you Thank

TechPrecision (TPCS) 13 Nov 182019 Q2 Earnings call transcript