TechPrecision (TPCS) 20 Nov 232024 Q2 Earnings call transcript

Company Profile

Participants

Alexander Shen	executive
Barbara Lilley	executive
Mark Gomes	analyst
Rob Straus	analyst
Kris Tuttle	analyst
Ross Taylor	analyst
Richard Greulich	analyst

Call transcript

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Operator

Greetings, and welcome to the TechPrecision Corporation Second Quarter Fiscal 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Brett Maas, Managing Director of Hayden IR. Thank you, sir.

You may begin.

Brett Maas

you. Thank

today Financial Chief Officer. call Bobbie Officer; Alex Chief Lilley, is the Executive Shen and On

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

performance as estimates assumes no In to management's today, XX, update future or statements. revise company's the these XXXX, represents November projections forward-looking obligation TechPrecision of as addition, to

with turn ahead. way, -- Please the go that of over call Chief Officer. Shen, call the Alex the With Executive out to like I'd to

Alexander Shen

you, Thank joining remains everyone. confidence Customer consolidated XX, you as September Good Brett. our at us. was high afternoon backlog for XXXX. $XX.X Thank million to

compared were $X.X a second net the consolidated lower sales million ago. million year net sales quarter, X% or when for For the period to of $X same

the lower X a the period X% net were compared when sales million same or first months million to for For of of fiscal net XXXX, year $XX.X consolidated sales ago. $XX.X

income mix Ranor XXXX. dampened A Ranor, for operating $XXX,XXX $X,XXX $XXX,XXX was versus Gross quarter a of Stadco improved, the first at loss subsidiary quarter quarter. operating with same for of the our $XXX,XXX. consolidated reporting Second loss at the period operating a second fiscal Stadco favorable for income profit in less project year ago. net quarter. sales favorably was of compared loss the a Stadco

and gross deliver X years margin the of growth to with next expansion. over backlog our fiscal expect X to revenue We strong the course

We tactical manage driving to execution focus customer continuous enabling on to both risk successfully of successfully to customer and and subsidiaries expectations, and comprehend retention recapture confidence. will continue meet mitigation, fully continuous

of key. which high can to results evidenced us highly positive the strong maintain focus the confidence, remain Bobbie? continued mitigation, customer and management, advances, continue expenditures, expenses, by of We CFO, progress a to control at to results. Customer and to all Lilley, on clearly review We our invoicing continue and final turn quarter manage customer enabled the of focused critical risk call we Bobbie do billings a our shipment. I confidence is see will capital cash over piece the with this backlog. now

Barbara Lilley

lower for you, prior decreased primarily rates. the reductions or higher revolver by than year $XXX,XXX included and cost prior a a the compared X% due or higher Interest million prior a period second higher $XXX,XXX prior less The when $XX,XXX. months favorable Stadco. year same $X.X under expense loan loss million X of Alex. or loss the to included Due income $X by at employer We increased period more same same the onetime quarter higher project at $XXX,XXX XX% million cost lower loan when million million was X% year the X% prior profit for increased of of for ago. SG&A first an and first Operating interest lower -- a amortization operating loss the million due expense loss quarter to $X.X expense quarter $XX,XXX sales a or Interest the were or the ago. were $X.X sales revolver year for of a a refund. a compared from $X cost period net loss due to compared to fiscal $XXX,XXX sorry, Net fiscal year $X.X to credit compared Ranor second Cost SG&A prior mix with $X.X primarily the X year. of or outstanding employer year to costs, were higher higher loss included million the for Ranor, quarter mix quarter ago, period Net period a and quarter Ranor $X.X the were amortization. or the cost a interest Stadco. Stadco. X Cost the $XXX,XXX $XX.X of $XXX,XXX in X% with an tax rates of of million by to with due million gross was ended ago. less by gross to project credit for was more revolver the XX% X% refund. million $XX,XXX gain lower Net $XX,XXX was the year than borrowing under at last onetime and an offset $XXX,XXX Operating sales for ago, higher was Stadco. to by compared million same year loan, due from under borrowing gain $X.X to profit higher primarily compared at to year $XXX,XXX the XXXX months primarily loan. Net year XXXX increased or part at fiscal was decreased second the for compared the quarter the $XXX,XXX XXXX by year sales to better same XX%, cost million Loan year million Thank to tax of than net Ranor. Due reductions throughput our year. year for the to period $X due or to of quarter Stadco. expense $X.X $XX.X favorable in

provided net our cash cash activities Moving Financing financial used of operating by activities for $X.X $X.X $X.X on provided was million. was expenditures Cash million. to capital position. million,

XX, XX, $X.X $X.X we was at total Our as of XXXX, XX, loan. March -- compared March to the end revolver at XXXX, million was under XX, $X.X an XXXX, additional debt Cash million borrowed September million on balance the September balance of cash at reclassified debt because to we capital as compared was XX, March $XXX,XXX at all XXXX, debt XXXX. Working our of September to violations. XXXX, $XXX,XXX current XX, covenant negative certain at long-term was

We have turn back that, requested Alex. now a from our I lender. With to will waiver the call

Alexander Shen

you. thank Bobbie,

these is on those large-scale components to and of who fabricated TechPrecision that For machined custom predominantly the customers are be our we precision confidentiality of designed. manufacturer sell that in are from that metal industry highly large-scale in about might work not X with things operating most many main components. to defense. We precision company, sensitive sectors, defense not industries customer company preclude components, discuss. industrial, manufacture call us familiar very which do publicly We may fields in our a precision a and The speaking

what both decisions. or the hear several the about call to individuals statements there I'm and not I conference me customer to read is is that years, though can discuss environment understand alone saying discuss I as requirements and questions, Board it saying, in not get for those continue every that by and or allowed is that such, real accurate limits which change. based to what limits written making As silencing have the we last I sometimes these we Please that last oral business. Even at on making the that are statement I am am conduct

There and over say rules. said about, our of on I the the competitors. the clients. are These would As rules, many these but are to completely we restricted. is rules. we have And my not rules, as Board's board. solely repeatedly love me, again, are are It are is making our decision these not we things based we for over The all can ones and direct the from not not what rules not same to speak

and made formula. last performing several threefold a stock progress led following That instructions. the great has a winning Board That work have to present years, about in by client is price Over took over. since increase by the we good

future. in see or final As point, I changing anytime clients a not these near do even the restrictions distant these

to also Where Ranor orders to in we to with them. TechPrecision strength honored see and our aircraft through defense United clients. military to Ranor evidenced subsidiary. specifically, to from our secure proud manufacturing do Stadco we the speak through we serve expect sector, we our expect we not as backlog. in our please with anything of manufacturing our jeopardize receive will, aim future it, the subsidiary. both subsidiaries, enduring maintain our customers. States not opportunities So relationships can And is partnerships submarine continue and the meaningful but We will by change. Stadco will jeopardize our we and not industry, defense Overall, the the naval about And specifically

line growing for and please prospects in the We profitability the are encouraged questions. quarters. Operator, open by revenue increasing our future for

Operator

from coming Mark is from question first Gomes Pipeline. Instructions] The [Operator

Mark Gomes

months, past you machinery issues the Excluding few which... the had Stadco that in over

Alexander Shen

Mark, you are little a faint. in coming

Mark Gomes

Sure. How about this?

Alexander Shen

Thank better. you. Much

Mark Gomes

Great.

the behind issues Excluding are order deliver expectations on a have Stadco, that you you, understand, now basis? I your had timely machinery able against which, you customer been to as at

Alexander Shen

Yes. yes. real The quick answer is the and answer

delivering customers' We our against are expectations, absolutely.

delivering of -- on just fact, matter recognitions we a different customers customers time. several As XXX% from for got our from

Mark Gomes

Fantastic.

form? safe have in missed shape being defense the by to in you say you anything and what sector not would it be submarines are that way, of So in or we then see or terms expectations caused that any

Alexander Shen

Correct.

Mark Gomes

believe Okay. reason that Any won't continue? to this

Alexander Shen

we cannot execute the expectation way future. in should same we future. in the believe There's The way will same no to be the execute reason the that

Mark Gomes

Okay.

the past exuding part X not year that confidence those the regard not no to reason then believe will with that to there's over you you believe if to or in that future, So a programs, in more, Yes? confidence that be continue been you've customer have to X, the the of leads years, been me programs

Alexander Shen

ever sure the in what's so Not future. about

I have by how if You keep to was resecure is that according to the customer that's what PO going expectations, But resecure activity the expectation their resecuring we and deliver love their confidence future. know the we we're we how the sarcasm. we forecast in confidence, because

think of way to saying your yes question. So that's roundabout I a

Mark Gomes

the couple that I all above? ago, dollars took machinery, might but been any capacity color of replace of few have commentary to saw not do or it is specific a months for expand to old at maybe as what CapEx work We such. that Final a as million question. your more Ranor to to customers of customers, for

Alexander Shen

being we've area I'm We're where into -- wandered comments. restricted on an

decrease So usually. adding new does not capacity machinery

So that we're probably say safe adding that's to capacity.

Operator

coming Straus Capital. Wynnefield is from question next Rob The from

Rob Straus

to I pretty So first, And of go Bobby, a going And it's questions. you. to number it's have specific.

On sheet, $X.XX definitionally, at went to And again, to a year-end. you noncurrent account is there, an And what there's million. XX Yes, help the be that just might fiscal And thought I liability. the of bunch $X.X up understand million help noncurrent able liability. the just you called includes? balance March other from get versus XX, of other account September so that number called it's as it us

in grants on in So And who the curious, the we is? just about is capital by definitionally it but bit. Then industry is CapEx, have whether self-funded? entirely spending of government Is it source competitors. a builds can Bobby the that this or are we're on, bringing or why funding primes infrastructure that are we ask moved included ask move TechPrecision? think for I Alex. because think some about that has we seen CapEx because call, thought money I that that line general, either I self-funded companies participants and I When CapEx just what's reason would reading spending, what for they the I'm into be on

Alexander Shen

it not is by entirely TechPrecision. you funded tell can I

Rob Straus

some Good. want. the acquired personnel individuals as seats that X key holding questions Stadco. ago, holding Stadco the we President to Stadco, really few always still was position Stadco? were basic of at a you'll, we a them I what those well that as means those holding of choose as are When X to positions I individuals CEO, that the and when are COO have thought as and that position. just we acquired getting years over we're individuals still X curious, those are support Switching those Okay. entities. over other Alex, you There's little Then and answer from

Alexander Shen

I make individuals it about the the policy subsidiaries. talking at a of not

Rob Straus

facing think do. integration some I explanation us kind thought Okay. is can I to subsidiary? Stadco's where behind And to you the or would with would be. challenges we guess so -- there's say better you're integration, staying with of What understand more that Stadco, color give it that we

Alexander Shen

Well, first let properly. me thing characterize this

turnaround, a not a is Stadco at an all. much so So turnaround. integration It's

mind. let's if So terminology, -- Okay? to use I prefer that you please, don't

Rob Straus

Sure.

Alexander Shen

Okay.

to there? Stadco. from little now we get a How right the get far we hump. revenue So complicated single reestablish see can quarter it's as customers more we strength a being is grow a forward of confidence back need recapturing single our to most bit orders there strength, get every more and us customer customer to the how every week, key The confidence. it to single preserve month, We backlog we every revenue every as ship need That's day, turnaround, by out With so important will continue the Stadco is the Well, we what single that backlog. these can give that that moving thing dams. purchase over point.

the that everything the but let's that's fiscal is problems are with I doesn't all There's anymore. key That us. aren't this out some maintenance first revenue quarter things What problem do in to fixed. we ongoing year that last that. the but think doing that behind down, this say fixed. equipment have each confidence of daily Well, some fiscal we're are had setbacks -- occurred the more into those quarter quarter. We not moving breaking need year, The is still There machines problems. So same our that certain problems, push just -- really of is first that more within

a assets happen. the shows no. a equipment, turnaround, just things things would nature that can are expect happen. in the the same during those we in things that what number have So unexpected a type of quarter, that But that of of Did turnaround, number of pieces the problems of the unforecasted

Rob Straus

those earlier are relevant Ranor call it this deliveries Stadco, commentary When or and against are to about you positive comments? as from were you XXX% delivering or customers, winning for and that of on stating time to expectations customer and only your Ranor that was both you in related feedback that answered referring specific awards

Alexander Shen

subsidiaries. of the meets customers delivery expectations both the Our for

Rob Straus

Great. Okay.

areas good that seem in to you of One is reducing make the Stadco... at progress costs

Alexander Shen

this reporting we're quarter. what That's

Rob Straus

see ending quarter That's an just process? occurred us whether which you give opportunities during saw as completed right, a that more and where or ongoing you color on the September. process not Could you or

Alexander Shen

by that would spans than It's much to X always as business I an and all process. year. and our really, of quarter required the though track than quarter-to-quarter more our remind even we like ongoing more SEC, the manufacturing listeners cycles one span our cadences

Absolutely. business ongoing? And in So bear mind is it the lumpy. let's is

opinion, project analysis shortsighted doesn't picture. the quarter-to-quarter whole is from going So entire probably, in my and

Rob Straus

Understood. Yes.

Bobbie. to better you back a the or prefer? Bobbie, that we Going do of explanation offline do if definition have account could try to you

Alexander Shen

online. No, it we'll do

Barbara Lilley

contract what's that is so is It area. deferred liability, in in that account revenue

So we've -- yes.

So increased. has it

Rob Straus

Yes.

Okay.

think Now prior ending $XX.X that that million. at period, business looking something about million. million I'm against Alex, that's ago lumpy. $XX it $XX The was at backlog, reporting this quarter we're here understand and said June the I you regarding we year is important

part for thoughts reason something what the across the incremental industry, appreciate because feels else? more the shouldn't Maybe to at -- we're to and the mid-XXs get tracking last better backlog months board expectation backlog I precision and this think what I tech XX that much is is this believe Or quite of anything on same on the XX than bit not viewpoint in see I'd for that this enthusiasm? that larger, it's is whether been range months, for think XX we've do number on least your you it TechPrecision a there's -- be have now XX stagnant larger. But where in we with can look, going any that or to

Alexander Shen

level turnaround, expectations because of midst confidence the customer that the a able of of say are subsidiaries. basically preserve a performance backlog level level big this meeting demonstrating to the and would we of win in is the the I X by

XXs. Probably So day in stagnant. I more big the would no. a Can than it consider winning this I we're as it win. more? being every wouldn't would grow characterize yes characterize I it as

Rob Straus

question, Last Okay. guess. I

CH-XXK As was are think were the is mentioned I Is today and which back we X correct? that year time Sikorsky, is it F-XXEX to are call, specifically fighter it tied Those Boeing -- Stadco, slightly some widely bit which then. acquired after every to tied known, business, relates customers relationships where the those on and X some jet. the they and ago, to the where were

Alexander Shen

the will helicopter and military lift customer to daily heavy confidence speak I remains That program. on strong recapture the a relationship we basis.

Rob Straus

And the no regarding comment jet fighter F-XXEX because... Boeing

Alexander Shen

I do -- do that customers. You specific from I know away shy

any any They that. losing key our confidence either. any are from shy I overall, give them. in the that the can for us we board, will all not I information in confidence not away customers, So one losing our But across listeners are same of

think So that should answer I the question.

Rob Straus

the give with could then the question, violation? release, question is we Number Good. ask are as thoughts our which Often, I'd just relates of covenant One thought that you end Bobbie. Last can of manageable discussed perspective. any is debt that these so lender, know it you I violation. looks quarter today, what your press availability on And remaining there as your regarding a your what or like. as the to of it curing comment one, make

Barbara Lilley

and $X a are we're end million. lumpy as have going as availability quarters our we is to lender covenant need to to of being move forward. business, whatever the And as we September The of waive the work up over far and and with down, that

Operator

next Investments. from from is coming Caterpillar The question Kris Tuttle

Kris Tuttle

question delivery place my the into about a years. ask bit over your for times you time for the about accept them you, in give words, may have customers satisfy did and it the to the things. their with quite little X.X of acceptable just are next them them? additional few frames to the for who I working we for lead want Thanks still more times talked year, to them their is have And the within satisfying just other update have with already like to a delved you expectations are Great. products. In backlog, to orders they kind want you capacity able additional and orders that

Alexander Shen

it? of kind That's isn't a tricky question,

Kris Tuttle

I didn't to be. it mean

Alexander Shen

our maintaining that Well, Okay. the on-time understand and the That other continue trying expectation understand through the new XXX% to that want customers. confidence can to interested we each so to our make We're same close that we all in secure with also to or and all sure just confidence delivery we XXX% thing. I'm is orders. listeners meet,

if order tries an think put defense So a aligned be not and I with a guess, in customer, the that to industry, very customers our will that disrupt And good capacity order. our available would are capabilities. I

they'll to to try So avoid probably us work a scenario. such with

Kris Tuttle

do the they you at want some that. work of And to room Okay. same there's them for little time, you a use programs, to more their with bit to some for if

Alexander Shen

can out. a this is always is figure spans This decades. I relationship something again, transaction. singular not that But a

would force would not defense expectations be in So It into that thing such -- us really, try the operating if a meeting would customer a happen shouldn't any be that not they to be. as they do way. manner that a to industry, should longer in

Operator

Greg is next [Operator Schlatter, question is a private coming Instructions] The investor. from Greg

Unknown Attendee

a have real just I simple question.

and a takes you or or but it, build stuff you you your will the years about about managing sense earnings speak expectations pipeline you in were customer at it XX to X over you think basis. what a X as And deliver built per out. daily X doing on being profit you've years, that share. not Are and X I talk know then you're out expectations any great ago. really past your shareholder occur profit? on delivering ever years delivered that the on As pricing Do

seeing type Just going shareholders without of a on any little long how to are positive EPS. curious go

Alexander Shen

expectations. don't think how our that understand customer answer question. meeting maintain I answer that our I don't do I Sir, understand I need do confidence. I to that understand to maintain question. understand an do how I backlog. need customer we And we to are I long. don't have to your know we really the

Operator

question And from coming the Investment Taylor next from Ross Partners. is ARS

Ross Taylor

Ranor, to result see you've us to is operating cited other quarters, of margin regard of of it what us were the worked or operating you've some mix mix. pretty revenue couple result is in you In getting do which issues? strong margin where it mix back Could quarters items old talk getting off margin? With we -- And Or last about to to numbers we more mid- XXs come X the high contracts? first quick. Is when the the whether were, Real being of and each favorable that a on? is ago.

Alexander Shen

that reporting referring to Ross. of a less collapsing are type that's different Well, part numbers in different have the -- type the each into -- category. numbers the that of profitability or we're is quarter, timing to profitability seem part the of mix the mix number have set with that is same part we It's

in So number have in profitable, up. quarter have large collapsing when you a profitability things the with profit lower If goes high collapse profitability decrease. profitability, still same yet quarter, relatively will of same the all them

Ross Taylor

indicate in sustainable at that look And were sustainable had last to of of a we back did a the be in it is if high business expect margin profit operating number you you a the quarters that of over expect one-off. opposed was time of kind couple number you we thought to Should not asked what you we Ranor, I was mid- number. was strong When that one-off lumpy. a quarters? ago, we've time a for understand over seen XXs kind your because when to couple as quarter, number the Should

Alexander Shen

for I higher. can't these certainly, aim when really of timing I occur. some of control Well, the

Ross Taylor

XX range lower see -- we thought we Ranor, base looking upper you're the to low an If that -- mid, of issue. that at comments if before upper number? the Your programs, or life for you are the is indicated we to quarters? XX say, XXs X entire add programs these programs working going fine, last should back are because at expect the we the expect out these do Ranor generally, we to getting this thing you were do of XXs I'm When we in margin see we okay, look and achieving in operating it. Or But that, timing of run overall, the the up XXs by years long-life be sustainable could couple were mid previous you and should that that revenue sustain build.

Alexander Shen

resistance, we start if really pockets it's in of Unless I we quarter-by-quarter hitting collapse so a analysis, these do which think -- difficult because...

Ross Taylor

Yes, I'm line. not -- I'm from to trying to program trying to I'm trying that. Yes, at get I'm line. away look program look at

Alexander Shen

COVID costs. the lot and Stadco, lot of think different talking So advent but of spiked Ranor. a I we're including us, Ranor And of about a

at looking we're experiencing cost of think and different and increases impacts. types I that

the to come something margin be of how what quoted impacts that is percent profitable also margin from Some is. don't a and just

and Some delays by supply of furnished well as things. timing chain material actually as those is both factors of affected it of timing in such raw uncontrollable customer materials as

what So we types operationally, the happens labor some is of of when have hiccups these wait.

when underabsorbed that to being met me. have things of the kind not profitably met. are are not being or relatively because because So much is job different so calculations expectations not are quoted. being profitability there lumpy because labor met, because hiccups, They're the underabsorbed not not inputs They're of we

explaining I'm hope I effect. ripple a causes properly. that myself So

Ross Taylor

No, I understood.

programs. were enough with more So saying business through of through. some inefficient A ways quarters basically, operating not at in higher-margin you business running level ago, is are you you're running you're couple what that because an

correctly now. operated is are operational kind you levels. So a happening somewhat less level you at in with that what's a you of therefore, here that -- inefficient But is summarizing are if where stuck I'm inefficient period than you we're

Alexander Shen

like we things So one things a efficiency time. quick are do with at but production, usually mass

I So terminologies I inputs, with hiccups kind model. we lumpier of steady try translate and better. business type the succeed want outputs in And before what What not to do smack hiccups is the very to Lumpy mass on is be know model. time. is all I there's these the well there's lumps production I when do business down and those to smooth We what using well to the seems and succeeded the very try and know. just avoid make and the and the stick it

Ross Taylor

you ramp-up given begin reason there the well, involved to that in with? Is very any believe the you're succeed we why cannot particularly programs

Alexander Shen

think beyond control is chain I So cause that pickups my problems especially the supply input the problem. inputs, are

Ross Taylor

Okay.

or is things. Let's we're on With Martin to ramp programs X are Sikorsky One fighter. in for aware from I with next parabolic, ramp, you Stadco, a things is in that from have you're heavy being it wrong of think, strike basically a you One low plus those would shop interpretation X that involved of meaningful a right? to those in see advanced -- expected of They north business call coming air talked a Viking build couple year you're single-digit I production helicopter. meaning you a lift launch a Gen move regard cases. Since Lockheed defense a Both that? at Am X looking F-XXEX would of of, my primes. the one to in programs. of programs going to XX a in aggressively units time, to They're Boeing the at expect artisanal years. with of production one year involved both in X X about

Alexander Shen

we you right. think to want all be I

Ross Taylor

a simple It's question. No.

what why and have I'm you to right, reason wrong. You I'm you're me you do involved involved the I'm want be know involved saying, so with, pretty you're but knows confident any with just with. Board what you're what

come West that sun idea is the going the in could forget or fundamentally the Just lemming the up to sea. emerge in

business here. lies Just generally

that reason appears ramp. the of Really, major the you spent the X be to that in around. on cusp You are business, major what turning it and sitting you years business ramp, why a last why bought

Alexander Shen

with agree totally you. I

Ross Taylor

take off? to problem to months do next maybe the Stadco Cool. ramps given the any do you you today that Okay. of meet expected seeing have Or XX XX do have in rates? need looking literally any that to capability you out do, CapEx build in Do we're you -- need what to these

Alexander Shen

are we meeting we looking customer customer As demand, demand. are at meeting

looking to into or out I don't don't term. I some what in the of materialize huge orders we reflecting how things believe short actually that dates of our As only these customers see, I of themselves are you perhaps can know are that ramps come so forecast, forecast have due that these

X we that. whether not in period, further then it's that a it's now vein, problem do from now, demand beyond and see customer meeting So whether months

I So question. answers that CapEx hope the

Ross Taylor

Right.

are for do structural components Stadco your you where to looking something don't you're airframe build each product. believe hard you're of either we in It's what that need at So programs to building, without key those you're CapEx. with. believe building We're involved I

one would warehouse, of someplace comment you're things assume that sitting to have free ramps, agree more that unless see as business. to disagree. a So or going you're That's these that the they it scores of in

agree thing. you're to -- going push I'm Since one not going to to on

did to that. bit end, kind the needs asked doing It say, have you It place. answer, needs hate you needs the hearing a the ago kind who caller -- about variety last business profitable. in that that was talked to what be It's stumbled couple all Alex, turnarounds. about of at going your to quarters. -- I say turnaround But know idea be for to basically really I self-correct. you -- from The because quarters got that's be I'm self-funding. the do of we to X in profitability, caught you and of a you're of a You And reasons, And fire doing Ranor. really little

I that. that. know know You

company what is you Board will the with someone achieve goal Your is, cannot this can achieve to the it business. and Board and knows that I'm who that, confident that, if the that sell

a you of operator, shareholder good the is perspective. that your and question from beginning, achieve run company strike so needs is a the from I know the would while out which kind this think question asked is you as is I that. But it backlog, uplifted. there's you -- well the a and are stock -- the itself really will then you have And gas, done bit like little third So the me of being turnaround, company is really

was do that to and that on no the like. there of the last seen has I've frustration, type commentary the organized see Board effort the shareholder a votes is just at on it of company, is against level have one out to this of ability can was have. Do the you the of look You see the does kind do frustration get just election directors when all not a for people you rarely that get focus struggling to vote or many to ago, Chairman's profitable profitability. here I'm sure say, sold. being on are get would game we need -- thing are we focusing think he years just years But foresaw back looking need this forward this to we end because your be to sold. company right? And anticipated this he it to that do quite you before start the enough know going we not was comment the Or I it

way a they they recommend a it say a really say I listen Graham find think the And the to would you say but need way lot. story. I because a in people lot, don't to to that tell you calls don't love. they

large So institutional the there broader out, a see a we holiday, would stock is reach listen up carry can have can more new a higher this figure can investor, involved springboard of of maybe a quite help who's calls investor to those few tell we idea and people be the and forward to the a to those have We story way honestly you audience. investment help nice over that it and levels. to the soak this

Alexander Shen

Understood.

Operator

Advisors. REG Greulich from from The Richard next question is coming Capital

Richard Greulich

back You the to go want to question. CapEx

So...

Alexander Shen

Excuse It's me, really very muffled. can't hear. I

Richard Greulich

Okay.

to So or was But show how expenditures. that up does entities My the dialogue cap are financial does I of another want on to statements it from question. if some entity underwriting the prior that then. CapEx understanding the go the back

Barbara Lilley

again. that Say

Richard Greulich

TechPrecision what entities. by its on augmented equipment If spends being capital is expenditures purchased or entity by another capital other

show that in up or does their So financial no? statement the -- in

Barbara Lilley

all inclusive Yes. any The total of CapEx funding. is

Richard Greulich

Okay.

get the And in financial then. -- at so what how the I is does look how that offset statements terms of

guess months... I example, for in if, X So

Alexander Shen

buying so up, expanded spends that are -- right? the the CapEx the shows money, We company, So company right? the is by

Richard Greulich

Right.

So million of for the analysis let's in flow that cash shows the say. months, up $X.X X

entities? is from where outside So of inflow other funds the

Alexander Shen

That on would PO. be a

Richard Greulich

on what? sorry, I'm

Alexander Shen

order. purchase A

Richard Greulich

include that to up. that. I'm sure But think understand the that not is how Okay. fully I'm in spending. going amount I excess to purchase ends order about capital

Alexander Shen

excuse you I'm sorry, more us. could one please say again, that time,

Richard Greulich

amount this is include to the included in is purchase So to spending And dollars for of purchase increase that's that. if X that the order piece? then capital

Barbara Lilley

as offset the -- amortizes. capital the the offset contract it in liability it The of of other and liabilities gets the is about CapEx part against I talked noncurrent depreciation that's

Richard Greulich

Okay.

with the and steady order. you have of when that chain causing enter with take Now how you into usage can purchase the more account if problem labor, into been flow a pricing supply interruptions

Alexander Shen

into that's How do like account you interruption? an something take

Richard Greulich

said talking... that words, In Correct. and other here, you -- I'm

Alexander Shen

going It's to say, charge account more. and of Richard, pretty this interruption, to quote a difficult, and in directly to much customer you I'm case take into

Richard Greulich

understand. that question -- But from supply manufacturing will or that if you interruptions somebody like I management. you never think any hearing chain done continue you're a has on? do And think who administration

Alexander Shen

we interruptions area talking an material, so of right? our into delving customer were with We're chain -- about furnished supply

Richard Greulich

furnished... correct. supplier your Correct, With

Alexander Shen

customer my furnished With material.

this supply customer that So the me which is PO gave the in case actual the again. chain

So it's of jammed bind. me them. I'm in a between puts kind real and them up

Richard Greulich

Right.

I wasn't fault. any and there Is you given renegotiate clarification. your way that yourself back go or it recompense Okay. can appreciate

Alexander Shen

until job of understand X won't There are the and or I understand years. certain magnitude limits quarters X really because the spans sometimes spans magnitude is and manufacturing until the I much done, our

do customer the could fault back fault. are correctly, my perhaps we then that answer things the question go your to quick absolutely, yes. be and that for So things is not answer to customers The

Richard Greulich

on basis. you do a like contemporaneous sounds it it But don't

Alexander Shen

humans way to Otherwise, all. in then it get day. an bosses give the have it it going be? well, it that side I us yet? every them. also Yes, day. how What the I of from bit if it it happen We or the is yes can't can expenditure. other if do I done it's We can than something. it do There's little difficult show a evidence wait I don't all them a -- to answer much that These "Oh, is a [indiscernible]. okay, off negotiations more." change on, I need [indiscernible] until and give on forecast them every yet, Because on, extra know later so a I say, and Is spend done not that get need sign to

Richard Greulich

it's an then recompense will from for conclude outsider So as of I through seem would you I'm possible of looking is -- at seeing that. is that what That's statements financial you're get that the worst would getting Would no the process, correct? be that case flowed how that now. it --

Alexander Shen

It's making No. It's of a Because mix we're the quarter one just aggregate The talking about, of kinds not right? of on spent it's stuff. all an one quarter. part. wasn't contract

Richard Greulich

to one of obviously as business. Well, quickly I'm real that always want there -- the to opportunities X.X Are year the shift major machinery is another you revenue to I stated years? defense growth of thing. you've have Okay. just industrial. company's precision part there next still other sorry, part over the for .

Alexander Shen

yes. but in trick bit little is defense. a the there so of a There's But question, we're Are predominantly answer that's -- growth.

Richard Greulich

at or no? Are the this you industrial pursuing opportunities in precision point

Alexander Shen

a if under authorized there States can purchase it's a And defense need not to we how you yes. How more of us. much going pursuing they're -- precision Opportunistically, a lift for be of industrial on America. seal the reliable if by opportunities and reliable industrial much those it, PO order away, it's what decades opportunities. is heavy Congress because But more precision United a that's of are long if pursue the seems many into the of capture or opportunities, opportunities of submarine turn decades, program with in problem so and chopper, so capture record more Whereas last. to goes

Operator

Mark from next Pipeline. from the coming is question And Gomes

Mark Gomes

regarding you do Graham looked end look at earnings front just the the at various aggregate. or be back commentary from If I It to and in the handle aggregate, end the you to of calls the program. But needed GHM, an varies a echo if a FYI. the good, would they model be it of parts want think, programs? the know just I the across average process closer how final to make general, assembly First, Ross' you program the tend that. I to

Alexander Shen

Average doesn't really work.

Mark Gomes

You have of the my sense question, spirit a right? of

Alexander Shen

but I build the We the don't it, helicopters. make boats. Well, sense components. build the the make don't components, we We we

Mark Gomes

different some orders that and time a specific be question that that for the specific final be we depending would getting would are at at average, as ask look helicopters, just tend for I same those companies at needed be helicopter helicopters you of process. end Right. But question specific an at I'm #X or when And back parts to to make a on on getting if orders if helicopter example, assembly. that -- be if, the front people for parts your time wondering right, would you your some

Alexander Shen

far that the So cycle the of I answer the I'm from in makes helicopter because we're way sense a build cycle away to submarine. question, trying think the build the of Mark, or

components. for are orders Our

happened end end is to because the it front or actual as as schedules connect don't what or to think it really I know order So back they the how far components, I varies. really customers'

Mark Gomes

you. Got

Okay.

I could course, to percent you gross try it's XX-plus think price work Stadco get out that's so your assume of to you Ranor. that those plan? we've say and on about that I talked Now safe still margins to the

Alexander Shen

in margins. do price to I'm going to best. maintain order my I

Mark Gomes

Okay.

that So place putting the to went the echos follow-up the would continuously that that to place that all one current the forward? that your we through environment improvement more is you process sure a conducive processes are you there. going the the environment and say But where is, I'm fewer as and with ongoing current during hiccups the are improve still operation we of initiatives, are opposed combined to is in COVID, at to

Alexander Shen

all impacts more the that think I COVID all resemble that expectations underestimate as far felt I steady industries. across reached we as think are still stable... don't that's pre-COVID that we've something being state

Mark Gomes

that the in But that get safe we direction, we reaching to further it to right? we're the Is moving normal closer away that get from COVID, state? say

Alexander Shen

it's and impacts are felt. certainly on the I companies the their operators. think it really The -- depends individual overall,

we're each subsidiary, similar, different location than mitigate better in measures further certain taking to I some and are would to think we -- some like impacts. to region these doing average. are that We

Operator

I That the does management team now session. for to remarks. will our over question-and-answer closing turn TechPrecision conclude call

Alexander Shen

a day. have Thank you, nice everyone. Please

Operator

does conclude today's you. Thank conference. This

your You may at for lines disconnect Thank participation. this you time. your

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