TechPrecision (TPCS) 29 Feb 242024 Q3 Earnings call transcript

Company Profile

Participants

Alexander Shen	executive
Barbara Lilley	executive
Mark Gomes	analyst
Ross Taylor	analyst
Richard Greulich	analyst

Call transcript

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Operator

Greetings. Welcome to the TechPrecision Corporation Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Brett Maas, Managing Partner of Hayden IR.

You may begin.

Brett Maas

Thank you.

is Financial Chief Officer. today Bobbie Officer; call Chief Lilley, the Alex 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 that as estimates the turn like the assumes Officer, Alex, no to floor In to management's Shen, Chief remarks. today, XX, update future is to or out over the statements. With revise Executive provide call company's the these XXXX. opening represents February projections forward-looking yours. of obligation TechPrecision to of Alex as I'd addition, way, to

Alexander Shen

that Thank our confidence XX, afternoon you, and report everyone, you remains joining $XX.X million million from Brett. XXXX XXXX. us. strengthened to happy high XX, to for as to further consolidated I'm December backlog thank $XX.X Good customer at September at

$X January February and in bookings million We have captured over new since of XXXX.

as of well backlog-increased programs. the the recapture class sole-source and penetration Ranor, in both sector. as Columbia new the namely class For Virginia content features content significant defense submarine

aerospace-related into content recapture military aerospace penetration combined new content tooling. backlog-increased significant features sole-source Stadco, military For space launch and with of

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

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

SG&A operating acquisition. a For million, loss outside consolidated costs the with $X million, primarily million, due $X.X to profit gross and was potential expense XXXX, third increased fiscal $X advisory was connection quarter by in of

years For breakeven We labor of the November third December to a margin. The strong sales, gross $XXX,XXX, story, around one share better specific the continues. fiscal our to expect electron of the XXXX, operates our revolves the available with largest a the of beam the holiday like chambers of number gross during requirements and XXXX. Stadco X% of to deliver States. would over do vacuum backlog fiscal a which of electron success revenue negative in the profit was loss Stadco $X.X essentially quarter and lower one United net hours fiscal quarter next calendar. welding customers' million quarter third gross technology. profit course growth was X Ranor of X with beam in turnaround at for both I Stadco welding for

overhauled results, start methodically upgraded have with today. our acquisition delivery components key of of chamber to on and XX% at improving time We XXX% on-time from Stadco good

to August improved acquisition. we other close at work Xx Stadco compared XXXX out much words, have put We as In today the XXX%. the of can throughput

other have we center customer -- recapture purchase feed this which new As a been result, well have specific and able confidence secured and as secured orders, as work to work centers. machining-supported

our continuous now customer expenses continued We which manage confidence. already evidenced meet driving invoicing turn recapture customer high and and risk Lilley, subsidiaries mitigation the progress expectations, retention We shipment. I to customer by a expenditures, at management, both to billings of quarter all CFO, our Bobbie? and continue highly final backlog. and on clearly results. control remain We the call advances, grow see results critical enabling of review continue strong execution Bobbie focused continuous to and enabled risk capital will of continue us confidence to to focus has the cash fully customer mitigation, this over an to on and positive tactical of with focus, the successfully piece

Barbara Lilley

lower net million Alex. the lower compared during XXXX a the costs to you, expense due million, cost $X increased year of SG&A expense million to potential with for a were sales loan more Net ago. and XXXX. Interest third quarter rates. labor XX, X% $XXX,XXX lower $X.X December our borrowing fiscal year income was third hours under a ago. same $XXX,XXX million loan Consolidated the a the at compared $X.X million or to revenue profit loss the the year million fiscal same XXXX. $X the segments. to of sales Operating at the lower recognized Thank Direct third interest revolver debt increased to due in primarily third $X.X higher quarter year quarter period was There $X.X for ago. due revolver prior when quarter. Consolidated year were advisory of X% was of outstanding lower under or or XX% than projects by to to for quarter primarily gross quarter acquisition. compared Net the charged of were both connection loss was outside

$X.X or XX% for primarily $XX.X million year a primarily as due as $XX period a period. Gross in Stadco. was compared Cost of SG&A net under than costs borrowing our million more for labor decline and by fiscal expense year increased and decrease acquisition. due expense lower a in was net connection XX%, to million increase sales utilized increased to lower result a XXXX refund. an in to and For sales. year ERC the a hours $XXX,XXX revolver higher period year primarily sales X increased absorption gain when onetime Operating to prior or SG&A a $XX,XXX -- $XX,XXX to for of sales with due ago. the loss higher potential the million number or rates net loss The $X.X Ranor income of were XXXX, the during due X million the a lower due outside $X.X prior or tax in the by period profit expense. Interest net lower Net rates. to loan million advisory $XX year credit of were of to from million X% a interest the $XXX,XXX X% months compared months same of included with ago, was of fiscal $XX were

the XX, ended $X.X cash million, was capital Moving million. X position loan. million. expenditures activities on primarily December the operating the to under $X.X our the from by Cash provided for used of provided financial $X.X for Cash net was months activities Financing XXXX. revolver borrowings

negative million in XXXX we to XX, XX, compared at borrowed XXXX, to I December million XX, XXXX. the current balance compared at debt under debt was as $X.X $X.X end of Alex. of all $X.X we December on violations. With back additional over of $X.X was the total XXXX, March will the was March because to XX, Cash call now $X.X loan fiscal an capital December million reclassified our certain million Working at XX, that, revolver Our turn to XXXX. at XXXX as long-term million covenant debt

Alexander Shen

you. thank Bobbie,

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

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

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

military clients, we future, it, not not can about a near is see these so orders will changing or expect honored do with meaningful to the not point, change. anything the jeopardize Where restrictions proud partnerships growth distant of as will, Overall, in please the States our them. TechPrecision and our not I to both Stadco and clients As defense do our will from these but anytime our the maintain Stadco we relationships speak expect we naval manufacturing evidenced opportunities and serve continuing with subsidiaries, and secure submarine defense and aircraft continue to in to United our we subsidiary, We manufacturing the the customers. sector, industry, Ranor see the by Ranor through through subsidiary. specifically strength we in final jeopardize future and we aim to enduring receive backlog. our even

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

Operator

Instructions] Pipeline. Mark from first question comes [Operator The with Gomes

Mark Gomes

to statement, Wondering have do feel and your looking you operations? got in need what access to Alex, orders you the nice right for and congrats what rebound what not you feel seeing now I'm that's on we're an you going about How capital there. but obviously, backlog, with see. idea in you forward. of about forward-looking the so cash industry, safe consistent a if for

Alexander Shen

have. we the let safe we over our feel think have. feel I'm about I rest of technical We Well, more about safe Bobbie. the me we do to to what CFO, stuff the question what turn answer going if

Barbara Lilley

with the we year had in facility. And and of the borrowing of end that We facility is renegotiating that down, borrowed we that end of at have still QX, process the up the The QX. -- have be a our facility done anticipation still that but go might negotiations we've in and in at did the banks. we're for last place back not

Mark Gomes

safe hiring on -- great luck call, about bit that's the be And I increases quarters, recent of on to CapEx guys any you the human know that's spent capital we having the it'd on that, feel you capacity as front? your last expansion. Yes, How to expansion in quite say industry, as which money you throughout with then the hear. stated anticipated a

Alexander Shen

to human interface with are. the make We good point. a conjunction In machine CapEx, bring to human with up a very interface machine work. you A it needs

that So beam Stadco's -- example, the chamber, increase capacity as as shared -- X% -- we manpower the we a well been with have our -- key driving stick have capability, very success has welding welding back of critical the that story with XXX% me, electron several components, driving as piece to throughput is it but increase. we go upgraded with also that's for chamber I I XXX% Xx, excuse

I had say So -- wouldn't yes, we luck. have

think I sure drop our do grinding have make back. with gains methodically been with we our away and whatever machines, humans that we make we to not

to maintain able that been have throughput. We

the you question. it's Thank news. good for So

Mark Gomes

your to close with attract the And to one they leaves would professionals, amount then that provide, consulting even time. How they your but that how that about final of obviously investment in feel about you you have how equity could to it? able equity, borrowing for is question, provide, a acquisition. bit close presumably point And range indicate banking your ability And feel amount depressed to over they an the do the are this other pending optimistic you, -- at you acquisition? expect come quite in -- this through to to order some what pay do be this left in ability

Alexander Shen

acquisition, negative instructed at the this that to to cannot or time. I've about mean the legally but been speak potential -- acquisition, I we Mark, sound closed, don't

Mark Gomes

there Was to are question able part I on? speak you any of understand. that that

Alexander Shen

] I I potential one think we err of activities before side continue. you. I say on one -- just leave thing is obey The we my instructions. need can think caution acquisition thing to the the Mark, and more [

Mark Gomes

methodology were that's Yes, which I clear good provided, you you pretty hit think you those pretty that the from think a numbers. explaining and optimistic, very you can did forecast which the job by that

So consistent in -- and what seeing that's the with we're industry.

are I even So nice well is was going of much, which your see be closed, to that waiting figure given flow a out but not order close, folks the -- deal lot through, to can is as it bated situation. so on coming think to as that what the breath

that's questions. which part so big I there, -- why a out that's And is the I of think frustration asked the

Alexander Shen

Understood.

Operator

next Greg investor. private The [ from question ], Schlater comes

Unknown Attendee

find just Yes. that couple you you're I've money fees money a to be Since I to quarter, am of consistent this losing this managed pay borrow got right legal having company? legal money questions. you're fees what's company? to at borrowing reading I acquire see this to pay if going can is on, the out you to purchase if you can the that to even mean

Barbara Lilley

borrowings. some been there operations. of expenses. the from cash also have There of There's borrowings has for But inflow some some yes, been been

Unknown Attendee

expect do off, a out is off, you So what, it? of acquire if company have the you in my a be even how even one; and cash able and pay to pull you question earth once $XXX,XXX company to was cash you size, within two, deal attorneys when that on you to how do -- the that's manage it the that pulled bank have flow can't

Alexander Shen

our I you believe report. are that mischaracterizing

Operator

The next ARS Taylor Ross comes from Investment question Partners. with

Ross Taylor

of Stadco? how unused It capable at, running get Ranor what also fraction X of the at in sitting level strike would do running me think you're running so and much in that you're what I'm couple questions. you capacity you're to a on of capacity trying A in revenues are those Alex, facilities. handle on a of at you're

Alexander Shen

bit. a Quite

capacity. so ebb I think of open we business, and it have the varies flow the with

ups of the PO question not. also going and that of mix to and us flow and and sometimes timing flow in, and downs it's really coming material have a product sometimes help the does We is

available, our more have is flow order and good, is Our capacity. capacity we open

Ross Taylor

not where to in employ utilize even have of but outside from have Why you not capacity important Okay. effort them, up would high company do industrial. only decision more add to of ready to used to to made? basis? execute them get from opportunities the you -- to temporary DoD see when allow your the on bringing a so if that were I be a you to workforce, was you it stepped an these away on level that It more worked business could abandoned get very that business. lot to you'd DoD, at your The segment. a Why execute, seems

Alexander Shen

then, instead with the time, potentially one used so with of Well, business that a deal one companies mount that fragmented, customers, continue a specifications and fragmented are if of These business X,XXX is of of much to you on remember losses the approach. do don't sector. concentrating our set back when over to much small and company lot the we do that forces well business

Ross Taylor

the you're about revenues, like. to information that going Okay. published me the and struck In years with recent what not acquisition, EBITDA regard on as ask the to you you I'm expected view expected offering but that, forward X

us it on and years out you're on to is to Votaw us give able X a not months of don't You information give that able quarter give us you're TechPrecision? Why X out.

Alexander Shen

Sorry, I... Ross,

Ross Taylor

I assume [indiscernible].

Alexander Shen

as well, numbers current The the X X. Yes. combined of It include all as the No. X. all combines well -- Votaw. X It acquisition subsidiaries all

Ross Taylor

As Votaw, long also visibility, you're have on your giving but on pretty you so not -- X businesses. actually only

were you didn't I'm -- think way, this run. I would favor it's be a will investors which, in when take by acquisition, the the be very if it helpful your acquisition, done, if think of, to I it home strongly

a deal end taking with financing I'm this experience. who involved fashion. money investors going This type and debt. quite on don't company who are, understand to than my that a providing on where just from, are investor is when be it's strategic -- of on those much think that, guessing over is the Votaw. taking deal done in likely is perhaps the you're usually quite or is a equity someone coming on that they providing that's the a larger or I Votaw's think likely it's what's clear. This I And but

it me also helpful and it. you be would they profitable. It's strikes being -- do do it -- would So it, if as be -- proven can you just so just at they're actually did

fact can't you specific programs. about You do us one's you the asking insight. about give talk No

to about least idea of and at -- the X combined got So X you've being programs, talk the able possibly others like. company, major the

you So that primes execute? new your not Also, have able those you're in to be from employing -- business who picking helpful. from you are finding up who others are would been here business that bringing or are

Alexander Shen

alluded in second public us just out as the Some cannot in execute you Those of are information last there. the arena that part your as to of is far what this of sentence.

Ross Taylor

that you wouldn't answer question. I'm able not business it. winning know Are to I they a or to be were that asking yes execute others program-specific, on? so not simple no had don't you It's able why

Alexander Shen

the able lost people is track your question. enough? that to Well, But not you're answer because good badly business. reason somebody on talk has told have you're that going the with their not think I who Is I'm there about right me to

Ross Taylor

No. Not actually.

think that the I part you don't I is around this think be it. that is of that's have we you investors -- a answered. with dance to need question can crisis what

laid your because referred with what you think for is others the if us, you build acquisition, us. have bridge share $X need I not you as built Graham a out a moment. with when Quite share, think this I to $X at to them be look and I stock you've a economics, would think a I honestly, this the to bridge $X to,

what company revenues, grown growing -- stock so, went backlog, it's to this year XX months to the And or happened it has not the a parabolic. literally XX, EBITDA last its while and for done like. without have You chance where over do Graham

If at I you're going you here at years, looking significantly what's a in run. that look out expect home

Alexander Shen

Ross, a you me chance. rephrase to me Let try give myself if then,

I clients. do the One the nuclear is when those. bid, there way from of orders think capabilities we is holistic several competitive our come and new So from the And we at released One the that is places. different submarines. not a only to winning new [indiscernible], part designed with -- are have look new numbers become offload certainly,

better question. that's perhaps way a your much So more to and comprehensive answer

Ross Taylor

and end. you're new that where to from on you're to. numbers basically have kind of That's So winning their I'm implied business getting orders, new picking up others execute struggled part correct? who Is

Alexander Shen

yes. inclusively, Yes,

Ross Taylor

Inclusively.

Okay.

Now last the you've X lost money of in quarters. XX

You've made X. it's even of What going going to to why I company what's it short get to we this think, of where that, the money in And in X will, and acquisition, broken closure money? which But take take? change that? this is making can't it of short

Alexander Shen

-- to that a been has down XX If a in big I a stories Stadco much stories, recovery, on Ranor but can of problems continue and is years we drag There XXXX. perhaps characterize acquired and profits. it it have occur. itself in been yet. to and over better good be very methodically place. have had It maintenance do certain damaged, really turnaround, earnings on suffering thump turnaround we this. the the We It's these deferred whereas was continues of and a that we much success the success closed hump not by acquired. We're

we drastically time, a suffering a a few ago, Stadco. that different had causing same at of at loss recall the number You'll months machines

Ranor be and that put Separated, the needs made the yes, One at is gains to that focus So to profitability. we have to profitable preserve and together, increase be are we continue really suffering. twofold.

now, with We are point especially Ranor. at an inflection

Stadco. at point inflection with We are not that completely

is good and same flow sharing progress, progress the not some success reverse subsidiaries time. showing both story and enough completely the TechPrecision at the to for So the is

potential are because our spending also activities that's to need get We our acquisition money steps. through do we what on the to and

I towards X the there this combination things are recent, So to that anyway, expect numbers. a contributing get is better. of

Ross Taylor

close operationally was or And quarter? it did indicate you breakeven that Stadco to this

Alexander Shen

Yes.

Ross Taylor

Okay.

are to quite close you So getting this.

Alexander Shen

remember got sales, -- basically. back a back the Yes, day, very while. quite you delineating there. of there line black a cross X% we you've the remember supported like We're operationally, We're were Ross were still would we we soon We black. Not once negative is for We that white. in and even day, reported very, Thank carefully red. of black, the to us it -- amount perhaps with almost like red, very yet. much. was still in Stadco. loss a I I small

Ross Taylor

in only is on -- me waiting for read it be Well, deal investors not that I It a the working frustration the is and I if -- this that my right run indeed the direction. everyone appears are will is home Okay. as strikes it also this think if financing. you is company, but have think that

therefore, go of you I absolutely it that right do or better because imperative, prove day this are the deal me and the shares to back you try out offering, to is if I closed are market. you you think right, fantastic. Because you If my other be stock read there hire and expecting don't in me wrong. a a that. And be and put the where public going is to and prove and right, numbers you lot was think equity something out public it's get people of to waiting the someone millions shop experience

patience in run my like stock this even born us be a with and patience sitting get your with can poorly you can to this [indiscernible] get this a I'd base, you I I I that's deal a at my like a we would looking virtue communicated have was deal losing And see is because am double to I was I'm we significantly deal. shareholder I larger don't And patience. profitability, with. where that that while see And think company, base, think deal. because supported $X not here get if I home close. And losing that shareholder If you, should the to still

probably at was looking the stock or announced than numbers if are deal, to it should correct even be you that the is when we these think right. close higher actually I

queue I'll So thank on else ear. you. your someone let

Alexander Shen

Thank you.

Operator

is with Gomes Mark next Up Pipeline.

Mark Gomes

Yes.

That First, agree everything I'd Alex. him, was performance. with response of command said. a kind like commend your to I Ross -- do I to

but to without business, answer not about bad question about So badly when stealing understand found that I -- he talking that was talking about you any specifically way asked a competitors, competitors.

that's thing best a the opposed So sort of where as shutting down. question proactively to done proactively

that, I being color think what that's you the any -- to without are to kind commentary its a you what in, of in. That will telling at about where numbers? course, comes on, little they're frustration be said, businesses little any, what peak, regarding you but going provide whatsoever, that of programs the in other a tell robust? continue like working Votaw a you free know words, have Can that's buying they're -- not you're us forecast continue gives In business you is confidence us, confidence things you bit that. to that

Alexander Shen

carefully this not this I'm to me and answer moment so going -- a I'm answer going Mark, give to question, avoid to question, going I'm this. here. just

be which of answer your The it show The the not increase. that So fall we do we we to reflect expect peaked? that. show to to do published flat? this part numbers question, numbers Do the expect is, an numbers already

Mark Gomes

I understand that.

Alexander Shen

sure far how all another -- us, was that. goes on part information with I'm that I -- I'm sorry, there not do, do that Mark, I myself releasing it is pride but the believe I I of of in. would

Mark Gomes

forecast together have you, guess, XXX% but best tell it." and I'm question the and color don't right, to crux this numbers, confidence "This my We forecast was. guess, more the little might is I deal So disposal. My it. of a adds believe that much the where is "Well, put around forecast bit have that that's at confidence your and every best the -- forecast put so you clearly Yes, the best that out was confident of I obviously, you can with in," or that in question my is in a you how know day I

Alexander Shen

question, to think as had an Understood. the out an pointed And is also combined I answer forecast, earlier in forecast. a we

Mark Gomes

commentary good, I Right. from was your It put guess the methodology. And last That there. then was very clear you on what question.

-- -- you're inning? the the are Is don't are I maintenance it Your we issues from we the there? XX% inning or Are through deferred working Stadco, know. How of quarters eighth away? away what in? X at we that woods being this X does out

of something you'd that to we're almost qualitatively, a However you want what you kind say almost going noose but not to when it hold characterize we're does over, mean? in there,

Alexander Shen

I think a answer question. to that there's two-part

and some the are maintenance, winning. As of we we implement deferred execute

So we illustrated one win.

Okay.

I'm again. That is -- ago that's ago, but sure meaning piece I'm making essentially from hidden year of and we're performance backslide also the is the last year to is mishaps articulately coming quarter that was comparison and don't to piece a to and happened apparent sales, backslide were breakeven. negative quarter net not X%, apart that quarter-by-quarter quarter, of across -- The any compare to Essentially the a pretty The despite right well, line a not that -- it if this very from fiscal other is it breakeven. apparent to us negative are year quarter now, that so we a and and not year so X%. sure point this X% piece the able the piece not ability a going let machines these not in the the hold execution of fall operational role of our ago. other they hold and you is ago, that year running were a

translate whatever able ahead repaired repair to be that does can backslide. than honest, let the deferred but We of only need hold and just our I'm not that is piece not continue into behind. we what inning seems doesn't tell fix gains attempting line we're make well. we are? job is implement to to we to more what maintenance, sure whatever be going backslide. are that but to We to it quite to And and How it to have, not yet,

of With We're acquisition. year of the a the in Ranor, recovery the now Stadco number with years. third it took

also So good more to the should come. that would good, business to be dovetails machines recovered. high mix-wise, us we've by it I be also things think our We that good there it would need timing-wise, giving be product for and into really throughput to support us -- customers

So But they more that, the good if that? good certain need the team, welding quite would help do highly it. we are can electron that part. Will bit. extent. They that's a beam a doing We to -- populate the of

ready equipment much So at give have sorry I'm and in the very before of more we the trying the now ever are pieces that explanation, than people to color we have to I'm to and bridge. long build work but certain and take a Stadco history for trying very centers. least, certain in on

Mark Gomes

Don't answer. ever a giving for long-winded apologize

is of a think you started direction. when communication in the of I that from providing the me, feedback you're call on ago move that substantial And the few this trust reminiscent folks that they a and greatly And number call, own appreciate and with as well. my your sure the wanes stock it's it coverage, communication, will and I on improved. that, this due waxes to I'm quarters

Operator

from with comes The next Richard Advisors. Capital question REG Greulich

Richard Greulich

X was I apologize. minutes call I only ago. get the on all, about of able First to

was covered. covering that So I something maybe

shares, thing was at financing? your all that's was saying, debt when double if you first I Have whatever. discussed The or heard even great, Ross shares you

Alexander Shen

to acquisition. about Again, I speak potential alluded not been I've to the earlier, instructed as

Richard Greulich

working you the the the that is are with Who you or on financing? Okay. firms firm

Barbara Lilley

this the are out, to think acquisition, you can have that for to press we for the need saying release and that potential anything there at went refer what just it and time. say in states I you

Richard Greulich

acquisition obtain this make of say you the is? them somebody the making ever Well, helping firm time that naming looking to the without brokerage financing. an I've who -- Could or adviser is that's first heard that

Alexander Shen

I this cannot at time.

Operator

question next Ross with The Partners. Taylor from comes Investment ARS

Ross Taylor

hours Marines limited Are I for wanted understanding Osprey tiltrotor are the not before. coming touch and a the for got CH-XXEs rave airplanes Stadco I their those back a has sure deeply real I The is higher at things hour-limited CH-XXE? theirs. V-XX was the to couple seeing back been my time. know quick. on Alex, business of Navy, program point. troubled Israelis rate. flying that much grounded questions but the I It you some reviews, had into should come this after at ask The I'm been

Alexander Shen

E I D, can K. business tell see you have that we for -- we and

Ross Taylor

Okay.

flew I and know. rather, actually that I quiet. was Big thought K over house Saturday, interesting. A on my Okay. surprisingly actually

is that So developing a positive real there that. in situation

your Second industry, operational its is to are hard industrial the peers funding, working government about the talk The in it, of like lot infrastructure. Talking Not of small out your of whether actual it for federal need very companies, to defense Is there of financing legitimate but you acquisition, is you million work? customers or from seen financing, we've of in people sources your government a sub-$XXX many be government. companies, build for are. are which work? should federal positions some the base availability dollar the are for

Alexander Shen

I say allowed next on to think I'm this piece.

So CapEx. I recharacterize that customer-funded would as

Ross Taylor

it. made and you, you've Okay. of is available And use that to

Alexander Shen

by executed partially and available made been Ranor. has That

Ross Taylor

backlog? does makes By Ranor. that, future sense. come Or you you a of When And yes, with do that which does backlog? with when come promise that --

Alexander Shen

have it anything to Well, give CapEx foolish would I do. to be them and funded a not think company to

Ross Taylor

is technical backlog technically, a of definition -- backlog. Well, there's

like. and definition You have the your

something might basically -- by to do million it to up but plus that... they're shows they $XX to in it's Which, your you obviously, finally it So it that might it actually number. you well way, get see to Or that giving something, nice is backlog? be the -- is something

Alexander Shen

is The question clearly. manufacture. for up as orders -- I of we can answer purchase it because that not backlog show backlog, that components definition very actual our does

Ross Taylor

that's And was at. I Yes. getting what

step line end, the over will deal year, the future the and a of when more month have that actually moment year what that, is favorable a that earlier a done out laid is you insanity, fashion? you be in confident, years and but why a it's have from beyond that years, and you're and -- you not the company and is it -- a it X clear you you this gets actually fate appear this on changes in why well have have but smart So transaction this years rather visibility likely this that X X that out, the a to of that

Alexander Shen

sir. Yes,

Operator

the back the have end floor Shen question-and-answer to session. like the for to reached We now turn I'd of Alex remarks. closing

Alexander Shen

day. you, Have a Thank everyone. great

Operator

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

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