UFAB - Earnings call transcript Q3 2018 | Unique Fabricating, Inc.

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Operator

Greetings, and welcome to the Unique Fabricating Third Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Rob Fink of Hayden IR. Thank you.

You may begin.

Rob Fink

operator. you, Thank welcome XXXX to Unique Third Fabricating's I'd Conference everyone Call. of Earnings Quarter like to Hosting today Officer. Officer; and the Chief Tom and call Tekiele, are John Chief Financial President Weinhardt, Executive

management, risks Before the that Act that discussed the statements this I on of Private and are forward-looking to call include defined call to XXXX matters will turn conference uncertainties. as remind I'd over Securities everyone to like subject in Reform Litigation

constitute and or cause to Forward-looking achievements and made per or does intend involve Reference future by expectation results, of statements information, results, performance required forward-looking any future this this be including on other future including levels and other the in in and known to update All may discussed among uncertainties an press statements Rule XXX(b) ended performance events not this company's the the this outcomes and statements risks, statements risk Unique such morning's that to December statements. levels company's pursuant these certain outlook, uncertainties with of earnings incorporation to from expressed report to law. These any to things, Fabricating statements relate period of that results, the performance and the event, not of forward-looking are those based section activities, was management's those filed the different titled annual and timing Form uncertainties implied may factors, statements today, related and All by performance XXXX actual achievements, morning's including share. the unknown press particular, financial does risks materially limited are XX, release us Risk not include cause EBITDA website or include, materially differ present expressed Such to and information. in -- from release. for XX-K expectation, to, company's SEC actual by of on this factors XXXX activities, subject to company's regarding, unless but and on of to Factors. call are such are about revenue, or different

financials non-GAAP prospects are certain These investors performance. to was presentation Management by make that during in strategic the management future. to measures is be like otherwise discussed current it it should forecast the and this financial are Weinhardt. assessing call and and will yours. company's useful Full reconciliations With operations addition, issued discussed the John call. basis. now that will is for to these non-GAAP John, In the evaluate today. company's earlier Unless be that said, of GAAP call understanding of measures I'd assumed are ongoing all be the used financial decisions, the press over non-GAAP future stated, results included measures non-GAAP a any to in turn the on believes this in to non-GAAP core release call

John Weinhardt

Thank Call. welcome joining Thanks, Fabricating's all you Third us. Earnings Good Quarter morning, and Unique XXXX Rob. to for

SUVs of vehicle the a from shift and that conditions. of and better continue the The assets to to and this align structure changing our business in cars challenge, towards as away to that they cost volume a continue better second as supplier crossovers, XXXX. During customer-specific quarter, initiatives result sales quarter our streamline experiencing disruptive to mix to changes making in Industry-wide to macroeconomic operations up indicated of customers fluctuations as to headwinds production new production had we're the our fire passenger the have advance light we Despite would. adapt to for our trucks. part than the they vehicle faced third rather growth down we lost their inventories due our they manage delivered and demand continues been

total sales shift short program While longer-term light it launches. term, vehicle our dampens and in that key serves the outlook planned mix driver as to a

Fortunately, us in to ability provides with a some cost of these adjust and our to business model response have we that operations changes. flex

efficiency, operational awarded Unique outpace to light crossovers, vehicles on SUVs continued the Our and our launches continue demand all are forward. acoustical content expected to going trucks for additional industry product enable and on to

the reductions year-end, we levels occurred point indicators year-to-date. will not all towards head production that As that to have overcome

being customers to that their we is XXXX while light loaded further vehicle inventory fact, based fourth by now would had on back-end the make assumed our levels. to be it production appears In used quarter forecast, adjustments industry downward

result, a circumstances. guidance year with to full lowering current are As align we our XXXX

lowering are $XXX revenue new a by range We for million million. million $XX to $XXX of

manufacturers industry molded as vehicle are the of and domestically million efforts drivers by lowering The longer-term TwinShape to adjusted continued are to programs, new are and book million. of robust our forecast future and products we OEM the schedules lowering driven inventory adjusted in to $XX by $XX levels. outlook range abroad their earnings recalibration data, duct We our I we pursue both production per lower of $X to to of primary business $X.XX new programs. for these the million range of diluted new a continue for remains remain our share encouraged and $X.XX, of a $X.XX revisions by and EBITDA

filling XXXX for creating our future XXXX to with new and a for are programs foundation We beyond, performance. pipeline

performance pleased our time, same traditional combustion to -- quota accelerate, proposal battery remained the first between and with vehicles and customers of New XXXX engine continues to and we've schedule than before, which our program quarter of scheduled vehicles level new activity end content business acoustic include the offerings. the budget, remain At on vehicles, to plays steady. electric launches product electric shift has and now directly The our from as more shared typically now are today. and on and

of seeing business. our represents encouraged the opportunities trends are the segment it by and We for in the this we're market

customers for with engaged primary a source actively are content be to new acoustic for models. We

We new ducts through quarter, begin vehicle to of Production the XXXX. third up that electric for of a is of our in acquisitions: relocated, our than and in and Fort this our facilities ramping efficiency. footprint $XXX,XXX. we from manufacturing two in annualized the Arkansas. savings and cost in quarter, one operations a completed be part had our is the one our acquired third new one program production late streamlined that complete. for improved closings slated we rightsizing program Also this are Huron, and During closing were Malaysia year scheduled the China we Michigan; of closings ducts assets been for as These awarded further next for Smith, transferred new of and launch separate has to Production Port TwinShape licensees. during two estimate now more

these are beginning realize We now savings. to

our product closed of resulted a which of we revolving October, facility. sale number of a in the down pay the credit approximately used portion new net opportunities. onetime on to $XXX,XXX industrial In Arkansas The on of to explore property, During we business, approximately continue our $XXX,XXX. were sale our from sale gain proceeds of the

customer case, one they with to new for viability are designs. that terms determine engaged cost, issues of our to experiencing a improve in of performance present in processes. We entering the order customer's molded production design and performance opportunities customers utilizing prototype we're a concepts to reliability. In with with product been actively In while have engaged their another, addressing are product, we current phase

next in that All the can revenue development incremental XX months are opportunities programs of capitalize Unique these targeted on produce or so. to

the unchanged. On front, acquisition and level appetite our activity of remains

can acquisitions growth broad product and our bolt-on opportunities cross explore affording offerings, We continue customer capabilities expand selling to that our by within base. us

for a in touch let the moment since over to Before tariffs the I headlines. just remains the on turn call Tom, me topic

continue trade monitor in We policy to developments closely.

time, to USMCA, difficult U.S.-Mexico-Canada outcome the publicly reviewed available to not anyone and the appear any predict for it's our related would negative there proposed high or does of be documents the certainty. Naturally, and a have present level at We to with impact that the current business. direct it final Agreement

over and gain changes. events would to you review more as about updated call CFO, the keep clarity like results. Tom our We now transpire the to quarterly will I to Tom? turn we any Tekiele,

Thomas Tekiele

the last to implementation quarter net a dollar inclusive basis some $X.X interest for of represented arose for you, net the XXXX portion period compared expense $XX.X other in compared tight the restructuring of total of third for administrative XX.X% $X.X period our XX.X% compared Gross million corresponding XXXX, other of quarter was when overall in in $XXX,XXX or to decrease was third million in primarily net John of period our net third operational that last XX.X% or $X.X to facilities for an ERP or to an last of for sales XXXX XXXX auto of industrial XXXX The XXXX, third our on related from million to of offset year. incurred sales quarter-over-quarter revenue profit sales facility for of Selling, short-term primarily last that was driven for overall automotive of by third to of expenses production expenses, we and year. $X.X were million was million for XX.X% of increase general production of or was shifted John. were $X.X debt sales and the Operating $XXX,XXX rates referenced facilities million Interest Fort increase of increase system. earlier. the decrease debt. was year. due increase year-over-year The X% million labor quarter costs $XX.X result our year. and million for X.X% income XX.X% for primarily balances in the higher higher from XX.X% to a production Net disruptions quarter the compared North on in was or revenue Thank The of $XX.X gross quarter as profit American to The lower Smith, turnover to X%. of or customer markets. $X inefficiencies the million the third was the well excessive total corresponding quarter total, Arkansas was of the compared labor as by X.X%. and of floating SG&A corresponding quarter, third production the sales due the sales new for X.X% Of specific company

for As we we restructuring equates conjunction diluted pretax two On with the closings, assistance $X.XX the the call, between estimated to approximately of an in impacted XXXX. by after-tax other to earnings to $X.XX the employees and other this equipment severance, -- to facility in the of the for for transition discussed relocation facilities. In we decision $XXX,XXX last $X.X related basis, GAAP facilities first quarterly million half in charge year. of expenses these in closed a earnings and

third During over plant approximately of given recorded bringing $X.XX the expenses quarter the million or to on slightly expenses we total XXXX, a the so far $XXX,XXX basis, related incurred pretax the had previously. restructuring two of we that estimate restructuring million $X.X to closings

closings do not we All the of to been expect to additional expenses the two expenses. and have restructuring related any recorded, plant incur

John down our revolving during Fort sold in proceeds we use and October, $XXX,XXX As the his credit Arkansas the facility. mentioned pay of remarks, approximately Smith, facility to

year-ago was the in shares third basic $X.XX decrease of production which expense related the tax result or partially to income third mentioned, XXXX excess $XXX,XXX sales. in those per benefit to $X.XX third quarter. XXXX to we were average The at tax third the the Income of The for and remained $XXX,XXX year primarily tax income quarter the both annualized of $XXX,XXX in XXXX. primarily year-ago savings share pretax quarter credits the diluted and income period. to and research closings, in year. return and for I XXXX. for the was of per a was compared XXXX last the this of in compared return $X.XX quarter expense a deductions. weighted higher to development share and was restructuring per cost in X.X the provision XXXX million third XXXX gross to by earnings to of quarter to tax compared diluted we offset two on $XXX,XXX quarter the domestic $XXX,XXX, are of period. adjustments As million approximately anticipate and activities EBITDA Net or share income beginning of profit steady quarters the expenses in for quarter of benefit compared due outstanding was savings diluted $X.XX due plant realize and fourth the basic $X.X decreases onetime The of net was diluted in third of the Adjusted third $X.X the to Adjusted million

same or million last results X.X% $X.X compared the the per X compared per the million $XX.X $X.X to XXXX $XX.X comparable year. year-to-date was months first the EBITDA XX.X% to income revenue $XX.X comparable in million, Total XXXX last million $X.XX basic revenue earnings of Gross in compared the up period period of from per last period Adjusted our $X.XX million during first was profit of now. months of for outstanding million period $XXX.X $X.XX of months diluted diluted of $XXX.X X for approximately X year. increased were revenue first $X.X the was year. in the the diluted year. year. to basic or X $X.XX XXXX the million Turning $XX.X Adjusted of X.X or last or share same to X Net and total share XXXX share was million for the of shares million total compared per and months first to same first or months average period XXXX. weighted of XX% for to months and $X.XX for million last in first X each the diluted XXXX The XXXX for

Turning to sheet. the balance

December XX, September equivalents XXXX, million compared as to and million had As of XX, of $X the of cash company $X.X XXXX. cash approximately

million net had As with lender, $XXX,XXX of as includes facility $XX.X subject outstanding of our of the debt company dollars. to bank line restated credit XXXX revolving $XX.X this we $XXX,XXX credit letters borrowing-based term of debt of issuance our company of XX, debt consisting million, entered and company under September amended term subordinated This agreement an to and credit million further term dollars. credit when lines end group. combines into $XX.X $XX.X of of debt costs subordinated previously of debt and bank of revolving U.S. approximately issuance agreement primary September million and the with restrictions debt our $XX.X Earlier The total our loans million, XXXX. week, credit had outstanding two bank a unused $XX.X of borrowings and comparison million while continuing net $X.X for is and total outstanding under available and The portion XX, which debt of increases costs credit of of loans which aggregate up the $XX those in approximately borrowings borrowings currently to terming of million had bank million, the revolving credit of of line to of the total principal amount on is of the of the of provide of in an borrowings by $XX revolving revolver, facility, availability. million out to to subject debt

to term all the new agreement loan. future to line In years provide new XXXX X, the November liquidity the adequate agreement revises million Canadian for current of with XXth, addition, and the the a credit company term amortization fund believe come. extends two-year both to dates XXXX for We creates will new capital maturity of U.S. of $X from and expenditures, April the loan schedule the borrowings

back of Board November per Finally, of over I'll paid of turn approved Directors earlier December X, today, now on dividend company's on business of the a John. quarterly call share of to $X.XX the as XX, of be XXXX cash close the to record XXXX. shareholders payment to

John Weinhardt

environment the summary, have development of call and remain to We and XXXX supports questions. will business. the Tom. for despite faced maintain business a to in about our that, managing growth our for cost we challenges XXXX. we new that Thanks, continuing in prospects are invest the of while prudently open challenging industry excess In With Operator? we optimistic navigating structure, our market in beyond, pursuit the in product

Operator

[Operator from Our Van B. Instructions] Chris first Riley from question Horn is FBR.

Christopher Van Horn

some So it quarter. new sounds had you the activity award during like

Were on highlighted launches those and those detail just You was clarity the wondering I'm around X-K you? wins. some Were get new new in could SUV. for more truck those into customers? programs, What the new there? you was if

John Weinhardt

them and case, 'XX all last that on new Yes. in a customer. will launch the new or within of They're it's In year, 'XX. are one either new relatively programs

Christopher Van Horn

award as you a at is And is how for some well, pipeline as and new that China and bigger regional perspective? maybe activity the role look from playing you? And of playing out the Europe a

John Weinhardt

We SUV in launched focus that's primarily on we America, as mentioned North I the all-electric have business China. but some SUV that's earlier been call, awarded in a duct on being TwinShape

is in intended out. obviously, the they're that market. But plays be vehicle China going we'll to in battery electric serve moment, how world, at to that exported our exported and is being to direct production vehicle the Now that's And market to see just but that the business, Europe, U.S. China. only Asia eventually the initially, largest and

Christopher Van Horn

launch you and -- what And does launch -- how how And cadence see you looking at all? how of And then for up is heading that the kind costs look set forward? XXXX into are product you do product beyond, have going kind how like? of those --

John Weinhardt

cadence the 'XX 'XX. and through is Well, steady pretty

As we've the the we that don't for floor, year far on early programs as the -- equipment and capital got investment capital nearing and tooling this completion. a of the the costs, investment launch expended the is -- already 'XX, in launch lot

we business as don't the As pretty far usual. anticipate of launches be actual as It cost should anything the themselves, unusual. much

Christopher Van Horn

rate talked the can in about Is we of And you then $XXX,XXX for now? XXXX? run potential that you savings. something right Are I an think expect that that at year full

Thomas Tekiele

at fourth in starting so that we should annual rate. run quarter, be the Yes,

XXXX, So a of full have we believe year we'll for benefits. those

Christopher Van Horn

see like found that something as outside you an think you of else quarter looks anything operational this fruit? I there you that well. low-hanging that perspective mentioned Is from $XXX,XXX

else there? Just anything

John Weinhardt

programs, inspection number well, we're to we We've lines. adding And a visual -- improvement Chris. camera a of some molded our continuous on We number products operations. of ongoing robotic of have trimming added have

add continue things frankly, and that's labor So reduce also cost our and kind process. that we our quality, to of an improve ongoing

Christopher Van Horn

be And year. grab NAFTA China if -- input And competitive the Chinese about up with a does end we're an but that going to of some that of perspective? for potential you your the some this the share importers the X XX% compete tariffs perspective at perspective, know products? a a I then wondering new talked also from cost the little any or bit from I'm maybe USMCA. from do you impact have Both on for you will you.

John Weinhardt

pretty for -- a products relative The weight, in our and to them their are us, it's It's pretty neutral weight. are event. bulky -- many light of

to you transportation far, part cost the ship have your them delivered if So then cost. a disproportionate very becomes of

is good the exporting exporting from that, us anybody news from Europe business or business protects us from North So or that America. to China shields

don't the being vehicle, impact And really long real term, make would If compete direct isn't effect a can't really that they be presumably, produced about vehicle to would on domestically. predictions be sales. if So if it a a that, demand won't something point, that overall North other vehicle imported met in the we in us as an offshore because have tariffs supplier. to shop being some and by domestic a competitor on said then we compete America this that's at any on compete our have up with only because wishes Having impact products America, as competition. set North had

Christopher Van Horn

clarity as have able do performance -- And expect you When you challenging even of even well. been to in continued XXXX, variation beyond, that be continue? that you of underlying do that, outperform see, then to would interesting to I maybe look around kind times. at guys kind as then And I some any any production,

John Weinhardt

though, to The determine Yes, hope yes, the market forecast question, going I bulk year whatever still what with do. is. this to obviously, your year. will underlying I market point, the that's we trying itself we're of in the be answering it the flat this outperform guess, for At do expect case. next to Regardless is say

of kind it see we if flat, X%, X% expect indeed still to growth. is So would

Thomas Tekiele

are to X.X is QX, point down point, mean year-over-year Chris, I sales up through And production X.X%, through auto our and John's QX. auto a

we in -- So market over are X% far the XXXX. so in

Operator

Partners. from [Operator is Instructions] Matt question Koranda next Capital from ROTH Our

Matthew Koranda

the guess, Just I the guidance we're in top line. year-over-year negative turning in terms of suggests revision, that QX,

the you or anything just So programs mix as certain vertical, maybe that's the And well. if just outlook? about specific the to by could, driving change

John Weinhardt

different light fourth the There the The mix toward mean really continued is trucks, the trend appear isn't. and overall frankly just mix frankly I truing is in this three to first some -- has no to quarters. industry to inventory of more What specifically, softening does any year crossovers, be the we're not It different. quarter their but general SUVs in customers their inventory or mix our the in than up the seeing and prior year-end. reducing

Matthew Koranda

production change I term, the the stated number a of it, expectation, points you guys of basis your or or or growing over be excess by guess then have occasions next year all call term I medium And longer so? at this on in think that XXX guess, maybe, you does I should which

John Weinhardt

change to we or the to expect not outperform market's market But up X%. market. If if X% question X%. be does or market's be? expect the X%, up X% that The will to be expect us to is, then the would It flat, X% what us down I the fact the $XX,XXX I'd

Matthew Koranda

just some was terms in gross referenced margins, you've guess of inefficiencies And I some labor with then the there turnover. and

on was inflation is side wage the curious, from guys is little you turnover. more details you mean, bit? inefficiencies into So there the labor I get for the a the or problem Could I it

Thomas Tekiele

caused which biggest That Well, facilities. excess Matt, excess third other issue. quarter, those of the labor to in in production Smith at the was the was facilities issue and the scrap biggest some the the move company, Fort

able turnover, to on has what inefficiency We wage raise and rates terms have us labor some which caused to starting keep in be are to facilities to also still not board. in experiencing of people some certain

Matthew Koranda

us in the foreseeable low you the guess, in that I kind running Are of the And back range? there that future? to pull XXs we're sort XX% of does -- get can for levers that mean

Thomas Tekiele

as in in obviously, as covering And the -- sales sales think the low well, the our going forward, to fixed declined quarter and running as I I costs don't a challenge increase, well. no. fourth the going third No, quarter, that's XXs But the we'll also. in that we're not be be

John Weinhardt

We expect to return it to levels, typical more Matt.

Matthew Koranda

And on a production I when launch TwinShape, product. in then the Asia, you think the referenced producing got -- in guys you've licensee of that

envision a pipeline So as impact model may that your model play biz guess basis? do you global forward? sort a on with And out how basis? does of going that part a any I the additional go-forward -- that your program on is I wins how mean, of meaningful P&L licensing

John Weinhardt

That wins it's received putting just would business Frankly, we situation us certainly -- China. got. not business enough in a to depend is on the facility for we production that it's award on those the brand-new but what want, we that justify

point it we're a it they content China, both would with as behind at we Malaysia. our And a licensee. facility elected If a to as venture. in the it's point, feel then we joint probably because warrants production they're to more that and us, we with continue volumes Malaysia, business licensee grow, approach that in market can to doing a as again, some to from gets it serve the shipping go So long we as where

we investment prepared a the or If lot clarity think not business China something future. we're energy or So to on more in we'll make a put be whole It's more money time should in in I to get you big given but enough we assume a have don't that eventually any China, kind situational. model. lot until and of business going

it's rate, to content yourself. a it's not licensee, quite we're making now, work but with same it royalty for and So good a as

Matthew Koranda

that? anything you're develop like So that big licensing to front read of pipeline a bigger we on shouldn't that making push into licensee sort or a maybe that first agreement anything

John Weinhardt

to have reach No. in is I eventually, would Europe, eventually or to conclusion whether Asia we that a if business it's presence wouldn't there. expect be had, in there enough because

Matthew Koranda

to are as You like vehicle? about between the activity shift the you And I a battery to more referenced pertains and and internal a towards content us talked a per your difference EVs? vehicle could a bit vehicle. like But was vehicle what quotation then typical wanted in of electric electric shift what seeing is engine little understand combustion you remind it

John Weinhardt

Well, our be customers is hybrid they're as as we're to the vehicles that more and are introducing electric battery plug-in through what XXXX far going from shift, developing that seeing XXXX.

that being developed So total speak, hybrid. we electric the or a becoming vehicles and just as they're percentage is are the of plug-in higher battery designed

for they the a that sub-segment to would we only as at -- we it quote segment We're out bid. grow it. as of will to quoting a more So or not and because of market, point expect close them with get grow business that we this enough production they put

seeing that's which is in in is the not uptick. going and launch anything even for So an launching and 'XX yet really start you'll to are out to where bigger we stuff 'XX, 'XX, we're 'XX 'XX, That business seeing see award.

vehicles percentage, engine I are the amounts on no the much there's can't to noise because white electric far hard say just As would I battery it, what put noise. quieter percentage producing as a

what content to acoustical because some it's in order is more more to that. it's product. what hard in up is it's more use. costly. it on jump bigger depending that XX%, a they more vehicle. it's that, So higher offset better more And which frequently to have product, per extent Having To The the product X% can cases, is grade product, have the said not of they say XX%, percentage impact is

Operator

Nobile Taglich [Operator from from is Instructions] Partners. question here Our John next

John Nobile

the in And we visibility inventory trying quarter reduction into you But North addressed industry. you of actually, you buildup even -- out like to as for the degree the customers questions you production quarter? grew fourth don't levels. judging comment any production levels. at exceed but inventory the see have up wanted we American basically where guidance, I were looks was an when just now their to know far if my of reasoning continue your the into reducing this going behind QX the the All idea might a the OEMs' get the in right than to you to industry already, auto I inventory. able And are greater less quarter. point to any mean, looking by as the to I'm X.X%. start production, I when than do to to in Obviously, it find be that's saw you? it affected for third

John Weinhardt

have our their produced match expect they Well, basically mean I and cutting up -- that response it is with customers do properly, quarter, assuming they so more that their they more vehicle that production trued the sync year selling, we the they of will whatever think the they kind to instead would it reduce of actual will vehicles to -- the production not making by That to are seeing. end to inventory the should sales. be. sales than they've get is for and in next what happen perceive sales they're they're that a back I see correction

next this to need specific question, So because -- year how inventory sure the not I'm John. in what make I they mismatch. be to adjustment they'll and the other of year, adjustments The will answer if

fourth year in that also days. except of just will first level year, As has are into to they fourth rolling it, be the seeing expect quarter be. now, far know Right I fact vehicle there year what level that that yes, still similar level it will the for we're the then production production overall this flat, don't this the market, says of holidays quarter a at, whatever everything as number be settle so to but should quarter fewer we exceed next

So be up numbers, in we first would and quarter will the to higher, next expect be absolute year accordingly.

John Nobile

that, up the I'm what in the to accordingly, the above I a fairly you trying mean of at mean, see, say, industry. you into, but believe to on typically, from because just point... X% Do up to relation X% visibility QX. when get handle I get you're this to to expect model to out your growth easy industry.

John Weinhardt

level is beginning, above to the next X% In again, be the whatever terms first industry in model, quarter expect yes, of year. X%, the we

John Nobile

least the I way visibility right the if halfway now. that first you being wanted to quarter around into quarter at see fourth through had

I you business. $XX had new late in XXXX, get if can booked Now back, in million

Now the it year. to line that's new to the I Are looking call, I'm on be to be for in kick business that up shipping what accretive starting was this we quarter. in, to be rate want track. that just to to to at by will be, fourth start $XX think, show supposed the top And to is last, to Are think scheduled into feel million be in contract I in in also not still a in on that from $XX judging last looking fourth supposed is a heard we I sure, of supposed it And XXXX? for I quarter? XXXX, million the fourth at run fully guidance. some full quarter? still of that get

John Weinhardt

No.

preproduction. the The or million the they what toward has next $XX of but system rate of fill already call of the first actual year. quarter run Some end will start started, production it's

$XX run then. now that we gradually a see will see until year, not up a rate be rate year. to of beyond run ramping So million between and QX next of and We'll

John Nobile

that by should so at first said it full $XX million? I quarter of annual you But three, quarters at that the could four million $X.X if of of the it. just Or end production see least linear, make we business, least

Thomas Tekiele

correct. That's

John Weinhardt

year. linear, That's correct. next quarters I see in three mean, we'll quiet but it's principle, it yes, of never

John Nobile

looking final the talked one XXXX. but think able quarter an in a about for fourth year are be XXXX What basis. just to contract, might I hoping the press annual scheduled as release with concerned of and no on now, was quantify was I because as there, TwinShape new were you that put Was -- it we from And I it know question the numbers at contract? is that there far

John Weinhardt

top honestly remember single of head, it's off but I a John. don't the my vehicle,

vehicles. XXX,XXX volumes So be its that something are like on about to typical going

to going it's So be...

Thomas Tekiele

probably. million, $X.X than Less

John Weinhardt

Initially.

Thomas Tekiele

Initially, yes.

John Weinhardt

first announced X, dates the of they for series a the It's haven't two. launch next the of and

XXXX, vehicle amount to in it least the would $XXX,XXX second $XXX,XXX business they go I that would during launched So or if XXXX. up say at probably could of

John Nobile

to know questions just of said, there. you wanted -- I to because put the to my see in lot I the weren't wanted just very all magnitude insignificant I idea Okay. this or Thank were numbers an addressed. of Like I get a be. much. I get That's have. how could

Operator

questions, to are If like no to there back Instructions] I'd management for further [Operator turn the floor comments. any closing

John Weinhardt

that the Well, industry term engaged the longer expect the but our longer be on term forecast whatever based we're in business dropped and the the XXXX. to see 'XX at again, suggest programs increasing this exceed next here the of volume 'XX. end year we the flat and that year as we've exceed in has should that said forecast Regardless disappointing level to is of the book with earlier, it's year, and of industry industry in, still very

this us. note, industry And thank year going outperform to I'd to we're to is for so continuing a although forward. ending like looking the somewhat joining forward disappointing on everybody

Operator

concludes This teleconference. today's

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

Unique Fabricating (UFABQ) 12 Nov 182018 Q3 Earnings call transcript