HZN - Earnings call transcript Q3 2017

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Operator

Good morning, everyone, and welcome to Horizon Global's Third Quarter 2017 Conference Call. My name is Laurie and I will be your operator for today's call. [Operator Instructions] I would now like to introduce Ms. Christi Cowdin, Director of Corporate Communications and Investor Relations for Horizon Global. Ms. proceed. may you Cowdin,

Christi Cowdin

Good conference and call Laurie. third to quarter XXXX and morning, you, welcome everyone our Thank webcast.

of Chief also On Zeffiro, the third the many Rice, quarter and available Release announced as in new President Mark horizonglobal.com. Today section our David on and CEO XXXX Investor morning call of our Horizon our today we at Financial Officer. are sites, website is well this results. Global; Relations as

remind Slide you uncertainties about are statements Global's statements. forward-looking X, presentation I results include to future risks constitute that to will like Turning our forward-looking actual today's that to would which and subject cause to statements in materially our differ Horizon the could statements. views These performance, from

I all and that and to section to Chief our release and in other Zeffiro. With quarterly Mark our other at press Mark? the in of Securities President now would of described with We in are turn Form risk most annual both to reconciled risks and have to in GAAP the and disclosures Appendix used Commission. call non-GAAP horizonglobal.com. are the Investor quarterly presentation which report said, our Relations being like our these presentation XX-Q filings website disclosures and available XX-K, Form recent of also These on over company's includes the Today's disclosures. the Exchange Executive on factors reports uncertainties Officer,

Mark Zeffiro

everyone. you Thank you, for joining Christi, and us. Thank good morning

quarter third in guidance. execution with financial line results delivered our Our

that the employees. on I’d vision, start firm nearly sharing XXXX Slide by our got discuss performance, Global company's off I to our Before mission and values X like

wants a around this water, work Clear or our working defined empowering their the needs or a well delight company's enjoying Importantly, to of employees, and building lives, of as at values people of the to and the are whether of foundation weekend we and designed do outlined are blueprint facilities to engaging set is we vision as System process perform our interactions focused partners great on our our we through rolled values Global company. our we growth. employ to the and as trend in interactions to which System as global for Horizon consumers on a this globalization to aspects We end are we trend and seeing a our have and meet our discuss results. quarterly site transformed multiple play. as we segue built ensuring execute the defined Further live, products which on user. guides the guide recognition mission campfire a our vision, of a own The our products mission core Horizon and Business of users, are a and suppliers. with our business. that and being also Horizon Horizon mirrors Global proud with and effort that engineered shareholders the our and continues through end interacting industry X. X and company on is provides execution OE our company, Slide a on in our touches also Global customers, Business Horizon L-XX Business Global The strategy. people System Slide farm, We're out and

levels well-positioned are and trend. eyes customers. growth our the apart us this Doing and of Trucks, region Global continue SUVs Our being CUVs, offset rebounded sets certain from August remains as business impact growth. a important to due a short-term is U.S. powerful with sales activity. related Bloomberg. September impact continue trajectory of and and of up the as hiring keep global on in and expecting TriMotive U.S. and for several for an retail impact business for future is on storm Overall to Analysts seen in has regional by OE due share distortion of both reported limited demand OEs hurricanes months business and to steady dip growing in grew in to every and inflation. retail a a combination to negative category expand any Overall the and by SAAR Westfalia is but expected our were underlying in with

the to Horizon time see factors growth inventory and post-hurricanes during needs but in quarter trailering the channel as is several industry aftermarket continues the to adapt predict some traditional many more Global space. the to business growth this in we model including to impact on by and players channel or process. as and the the expect For this in adjust towing impact difficult independent The slowed magnitude during our rebuilding regarding employed e-commerce the

but We realized these fully been they continue as financial. increases our yet We've rates to not watch the price on increases impact price have keep in instituted of of a steel exchange and a [waive] close our cost goods.

continue to increase situation in assess if early prices will We again and the necessary. may XXXX

part was supported of increase sales growth organic XX% but geographic attributable the by Our during the to Europe-Africa Westfalia region. also addition revenue segment business the in quarter and in our every

while $X.XX. like guidance full-year Our we I to EPS full-year we earnings our XXX% pretax also We the reported X, key increased against revenue turn quarter. execution teams our tightened on the to would income adjusted priorities our per and an and during we of Slide financial If reaffirmed diluted expectation. provide share raised update

our We'll QX moments. €X.X take million. €X.X our out closer is execution the synergy Europe-Africa team. expected these to for million achievement Focusing in by that the efforts communicated at bring integration target million look on synergy reflects X impressive few to This We we total previously Westfalia to margins, in unity a achieve XXXX. realized

increases XXX point and profit Asia-Pacific included or improvements Key had productivity this adjusted input a due to a margin with property. contributors margin and the stand-out associated increased intellectual operating Americas Meanwhile, costs the of our in quarter dealt delivering with improvement XX.X% headwind protecting price basis implementation of Global meaningful sales. to Horizon in the expansion of timing focus Business System. cost, manufacturing

Net the all quarter. from three capital quarter sales Looking structure the times. across X.X second the improved during regions up at leverage were our

OE with a of module and quarter behind important million XX with secured OE had wins business award continue Most additional this $XX Global's we our an part trip the for trailer Horizon the an next to breaking Americas provides lighting savings a approximate module. to The grow rate the run Our customer space leading team OE combination cost across business integrate dashboard. electronics during new the as all notably represents generation geographies.

represents and sales improvements very that expansion current company's add-ons. double-digit well will future systems technologies, quarter in - integrate technological This significant electronics a growth as organic technical marks Asia-Pacific. as provides New OE to for posting the over module our This begin our also consecutive significant can our award advanced team. sensing bring third other award existing

We have in continued through industrial quarter. in sales channel. further growth with accelerated the bolt-on new Growth acquisition was to the products associated due

conference plans on distribution real to this with excited our much update the new like We our in we're on X. not Horizon global benefits about efforts three the last in will made channels. City call for the from team's for still are team DC on and Kansas and ball consolidating effort. see margin the achieve. distribution aftermarket Americas progress our the Kansas we expect new to of City serve there to important these against taking are facility quarter provide I’d Slide financial as the announced more primary is an quarterly We as during The pleased the eye during progress retail dashboard priorities, and the hub

begin process optimize distribution begin from City in our phase will freight and $X Americas in transitioning savings efforts the half the We’re to the of in anticipated of rate XXXX and and inventory million for and savings million This Kansas XXXX. during certain year generating November. an and $X the first align move expected between is will full run of with first shipments cost

Our expect goal that the quarter of we XX% to end XXXX. and the base by continued during efforts a reduce achieve to stated by supply

including our the Las and is simplifying event automotive our products in premier growing work SEMA trades world. As the show focused team these and at full the benefits leveraging hard cost Today, in a buying business remains to specialty meaningful reap The power. we're organization, Vegas sourcing opens on reductions.

next effort of the innovation highlight meet will product we our days, several key Over with and teams the products and customers, around engineering new development introduce globe. the

customers workstreams This slide dedicated the the to Horizon XXXX. we the expect our highlights entire expect the We Horizon management seeing the impressive end of as towards product should operations be year team Global efforts council this five €X We change I of team engineering our brands. Business are in ways target to quality double productivity. out focused that performance left goals. and my the XXXX achieving in the and on The It is sales additional we our European and of Slide towards start most on working synergies XXXX and ensure new industrial achieve by have This the System key Asia-Pacific are our and focused created the quantifies development can and also a support to our least product synergies the the in a roll graphic Europe still globally we're noted streams is that leverage from each aligning the and including demonstrates management Europe-Africa team. at through we at providing slide on team's million throughout progress aligned about delivering organization the new for system and evidenced our the improving benefit. but remarks. by work is spoke they and synergies this our reaching that OE. team consistency our where Horizon and product our synergy XX, is efforts the the by our expertise global wins with and

turn QX regarding when detailed QX that XXXX insight performance. final We comments, After I'd the during who provide Dave on over to full we will our Rice more call our Dave's quarter Dave? expectation third CFO and now guidance. like share details will XXXX earnings company's year-end thoughts share to I’ll conference some call. into additional the year provide guidance and

David Rice

the items to included Appendix Operating to the first ship cost the primary increase the in outstanding channels to in The quarter performance Operating an the tax supported lower most sales shares compared by This from the compared income a an reconciliation quarter performance be our the quarter rising third-quarter as Europe compared Mark. primarily was million profit follow, adjusted EPS increase is $XX.X the higher-margin income from and to adjusted increased increased $X Net XXXX. $XX.X year. have profit of of growth to double-digit In the $X.XX the cash improved results the been well increase nine Appendix quarter completed. XX% increased same by X.X% cash working discussing e-commerce, $XXX.X million are XX% our in third versus have results. presentation. quarter sales within I margin statutory ratio sales will segments third commentary or XXXX profit XXXX to all special to To the months in million the of of Thanks those Cash in Also every prior of the basis. comparable leverage basis of commentary in Net Slide OE in as conscious today's benefited $X.X of our the XXXX cash region. from projects leverage and to U.S. nearly used Americas. increased ahead of References XX Westfalia, the This With per $X.X non-GAAP at identified increased of also to and of aftermarket this of excluding earning relates Operating over margin million of attributable million all driven in drivers lower which as compared an the and profit margin U.S. and that, to third million increased for segments, XXXX earnings reported use as Americas growth my items. will in per we jurisdictions and we in declined the sales to a for the in effect of for strong $XX reflects GAAP number our concentration with provided per earnings the diluted to XXXX. rates. operating in segment. to in million to special Horizon input sales adjusted the investment on improvement XXXX prior as $X.XX net on net share a with well the QX quarter balance compared of point Americas $XX flow to Total have as and of to from inventory be quarter in in GAAP in to were both summary Asia-Pacific turn as measure. attributable compared X.X% share current price debt primarily primarily higher capital Africa in timing excluding Global refer operating million XX.X%. of last commentary please sheet year. segment segment. share the Earnings in increased levels the $XXX.X sales realization of in from million in year and year. on XX% to activities

the our I’ll of On as ratio efforts Slide performance the Westfalia, to the go during acquisition total reflect of Americas. recapitalization first and Our half net as of Horizon XX, debt well leverage XXXX.

quarter fleet driven experienced strength duty in retail to continues will products automotive our in merchant by €X.X strong retail, Operating third in $XX.X Third customers. our from volume volume year. evolve. million to further A OE, and profit we e-commerce margin relatively mass costs. compared higher and OE and sales RV to net in decreased saw to habits offset XX.X% profit our controllers the higher than Americas continue channel consumer $X.X strength warehouse auto XXXX. automotive segment of million brake freight last while that pockets Always in largely The channels. by same aftermarket commodity increased industry. the lower The more from quarter profit of benefited channel part sales and million decline solid final heavy and flat as in $XX.X of was million we in remained in aftermarket result growth in channel performance operating net costs healthy as distributors believe supported show increased with the declined quarter the Operating input to XX.X% including sales e-commerce customers

higher impacted increased In was property. negatively addition cost our costs, associated with of profit intellectual impact operating by to protecting the margin input

consolidation as on market of increases the of effective conversion fundamentals team paintline were the in manufacturing of price actions offset the realized strong strategic announced facilities. impact the distribution factors the facility, the delivery executing quarter, savings during City the While are full not became Kansas from QX. Americas Reynosa of the The more and and while these than these focused Combined cost remains of the projects such maintaining innovative products. realized

weakness Westfalia. existing Americas In Performance is of due Europe-Africa by and XX. sales segment the addition, the new the acquisition provide million and Operating Net in has or in in The profit respond increased recognized team for business as in sales quarter already segment changes support offset by increased OE approximately growth channels X in the Europe-Africa partially continues as expected aftermarket on double-digit our to to continues synergies million €X.X the customers. the Horizon to highlighted million in both largely commercial experience Europe-Africa million organic about our Page the $X.X gains driven of revenue $XX presented. channel integration to by Mark to channel.

margin an reminder, the X.X% As basis for of governance increase synergies profit net perspective. was a in of Operating net from leadership investments these made XXX reflect and business our a points. segment in sales, this of

channel synergy of OE team the and programs. integration business in to Europe-Africa product the refinance primary currency benefit introducing million Further, Net net XX.X% million benefits and of and implemented future Asia-Pacific productivity $X.X sales to from higher earlier The compared Asia-Pacific business the acquisition drive quarter initiatives. compared the to constant of of in to improved to position .X% realization new regional Net realization The that margins its the to XXXX. Page and our the Operating basis cost XXX of the million launching of gain channel in on XX of Operating XX.X% in the restructuring in in the Europe-Africa team identify of and sales with of channel. focus compared Europe to addition XX. highlighted share. third the XXXX. risk strengthen result customer the Performance the new industrial continues expect periods. the quarter remain new and quarter to and increased strategy on productivity the profit of our This aftermarket basis the $X.X on new opportunities. XXXX. a launching increased We quarter programs to team continuing due profit a continuing same in million completed related to third sales primarily a volumes remains to products higher focused $X.X Horizon transform in is bolt-on integration region of previously leverage to points $X.X that in increased increased margin on to

Additionally commercial integrating recent to XX and a and leverage China. strategy its developing acquisition, our bolt-on is and implementing is for of successfully the team committed Slide liquidity. view

debt for as believe our and a third end quarter convertible our trends measuring ratio leverage We our notes. view reflects with our position. total of lenders you agreement for debt improvement exception of million of and notes, reflected the to quarter. the its leverage The $XXX.X the this All equity investors the slightly leverage. on clearer our presented sheet portion was down our see definition at this purposes provides the second in balance Our total in from debt periods of GAAP in have treating reflect U.S. our profitability page GAAP provided credit Note convertible on respect U.S. the have the presented In ratio the presentation ratio seasonality we the our the the of of leverage on and using prior that current modified business. quarter. periods our we

the repurchase you million stock XXX,XXX common availability of $XX.X to purchased the completely and $X.X incurred have adequate would takeaways for the QX. under to We year higher closing for historical the generated In Asia-Pacific with have shares end products million end quarter. of XX used additional in to kept closing this our the primary at remained of our business. to $XX.X see to the in expect quarter quarter to the initiatives. the decreased Cash the million the of of was consistent highest of fourth XXX,XXX led extinguished I coupled financial of continued to year. from the and execute sales timing a to at increased performance with shares in million. our this second leave with completed also book With trends. provide working at of borrowing quarter million flexibility This in to quarter carry buyback our the respect strategic receivable cost QX Americas with total the continues we decision in quarter being operations quarter. a support delevering completed inventory the couple for of the business second with volume approximately the a build net working the under the XXX.X flat seen transaction our we an Debt of million from the factor of balance historically in Cash have point in In total hand our in the than the on program mentioned announced cost projects $XX beginning previously by $XX.X with $XX.X in inventory common at capital to like third second bolt-on that previously connection million. was million was acquisition stock cash Asia-Pacific capital, at decrease. facility on at share and quarter, flat The over in program at of

the decisions of all value of our enhance First, Horizon. regional of incentive reflect teams to performance shareholder the

of While business. execute operational the faced continues margin to the the Americas headwinds and improve to in initiatives quarter, the commercial strategic outcomes third team their

year-on-year Our and both quarter basis. improved year-to-date in the international significantly on regions a

to has expect the sales further to in of Second, and of levels year, to the fourth increased will occur conversion quarter at we the point which led cash while working normal experienced the delever in historically business. this higher timing capital the working capital

to the continue operating improved shareholders We while focus delevering upgrading business. on performance through value for

quarter will remarks. turn as Mark long-term to If goals, fourth Slide Mark? our take and well you'll wrap XX, our and full-year discuss prepared cover as up guidance, over our

Mark Zeffiro

Dave. If team to please strategic refers everyone to we our see strive XX, one you'll could daily Slide Global the as goals team and Thanks turn those to achieve.

SlideXX, we've lowest for review the QX to a fourth guidance. to like our our inside left of included to for you this If I our the reminder snapshot also on guidance expectations reminded Westfalia. insight with and will that providing so would results contributor our our how additional quarter slide compared expected earnings. as which foundation setting is turn of the the of investors year is this be of the into historical business. the have to Please business cadence the quarterly analysts addition We're

plus As fourth-quarter Fourth to adjusted expect $XXX range share $X.XX range million. minus million or XXXX such revenue breakeven. from per $XXX we to quarter a earnings consolidated to from XXXX

that guidance geographic guidance prior an the regions full-year revenue the range. and third also earnings to all during expected our in around remains achieved range our the organic growth quarter. Again XX consistent increase in pleased please. share adjusted our Turn of midpoint an come we're to growth with of Our revenue Slide per of reflecting

a by the balanced point to or any is customer all business positive way that be gratifying particular business somewhere likely is when Our else but set we across challenge strong geography in results model can performance in is geographies. channel, offset particularly it a such a to

the communicated had Europe expected Our margin result in a line outstanding. We was performance expectations. and strong deliver synergies in Westfalia in Africa and benefits to with are Asia-Pacific

progress build forward future making is of We we continue XXXX fourth the against sharing of focused team team global our for on and is headway the team and financial key Global our a nearing bright value shareholder beyond. for business. delivering The We're and our on our for see conference to ahead our XXXX goals to planning look our quarter unwavering to priorities remain outlook full-year continue our commitment we and business. We process against demonstrate XXXX we call. and end detailed the and the as

like I'd your questions. will back to and it turn over Now to operator gladly the take

Operator

Your the from Matt question Capital. Instructions] of first comes [Operator of Koranda line Roth

Matt Koranda

and you pressure Just there of margin guys during that the America want to highlighted the start sort up with quarter. North

So, You break of steel a if for number due is of it the possible get freight we to clear guys out much efforts? was and essentially to up input pressure like wanted kind that cited IP to see us commodity need pricing can protection versus it how versus of buckets. things, but and

Mark Zeffiro

dollar for relates of demand the cost of of is really input cost say the price described slabs freight balance quarter input which containers would about of XX% of cost it of carrier IP. to of our the - the I the is cost a of steel, to balances cost which and both going protect circulation containers That's out related the an decreased input cost the change. In XX% material you shifts the value all and and with of business took out two-thirds that our that freight increased. then about is other in it the

Matt Koranda

experienced here. take assume you other the or change other dealt the is with steps XX% guys have over kind freight that that you are to need it the of guess So, of of there some change is to safe I to costs now

David Rice

getting it’s the of into been product country yes dealt. terms in Well

if continue becomes to eye take more and XXXX of pointed a cost trend, pricing we’ll out this longer keep in on input an actions Mark perspective. As QX a of term from we’ll

Matt Koranda

price pricing kind because six at been the in or month assume would and would looking pricing the action into - head increases be QX? cost the peak would from bit of QX have you in price sort So that the it could abated QX to input steel little of mainly bit has a freight you steel QX of input just as we about impacted headwinds steel ago combat input comment how indices a

David Rice

of payroll a there it towards through that it abated then bit of through where right for terms how beginning where the prices saying actually beginning delay costs of run XXXX. exited year. would obviously up was now enter terms I those in they the basically in high flat were are relative was to end But to right basically They're were say steel and you’re and QX income while QX at QX point really of with they QX at as our our flat we in is the statement.

So all equal our that continue the being to moves watch material to-date cost and to things seen, steel actions we’ll cover freights should time. and have it as pricing thing new we

Mark Zeffiro

that costs well. U.S. they're The a specifically to Matt, rates other affecting is you exchange part goods like of last the this in as I’d at changes Mark significant R&B look period to purchase is of to if add it on compared dollar, that's time inbound our

flattened the frankly a you out optimize pricing with lowest that's dislocation side dealt business of just the cost steel don't as at just quite out for of we’ll with the it that to carrier we��ve from I we steel, have necessarily a us temporary but by as think a issue and deal provider. perspective has not shift you it’s to and transportation So ability continue shift,

for think will here. immediate and that rate So harmonize most and need I broader be associated another implications precipitates a not exchange naturally The increase. whether with or question price question that is will the

Matt Koranda

help understand of the have into into here. as head expected you QX, of driving higher terms In I sort XXXX? into higher have would how QX than quarter that growth Could rate the is for us heading since good little what's we sustainable revenue that visibility you guys a looks then guide and

David Rice

what's projects, new just really of OE increases good increases its the also that's and in Well as CUVs in that each terms through period volume volume dynamics sizable wins, - new overall conversion OE full SUVs, across but seen in and we've real seen has take, dynamic. growth region continued share the driving volumes higher globe Sedans, the the of

$X here major largest in to Bars million add quarter. last of is in could of is is Those the that manufacturing the we supply also I the Matt feel are add through North that China that the last base. seeing costs impact circa pressure I one that, if is abated. Matt steel still terms your Best Those for acquisition There index real is in it's Asia-Pacific and hot plus America addition thing and realized for the dynamics wanted pieces. So the here question are Chinese for manufacturing rolled the in which input

again it's and but abate dynamics towards our rolled the our been through in think steel The still China so time. we’ll at input a costs large that to well, North hot continue otherwise in as we’re point dealt global input way in of is part that cost American view see is with. the issue working So real change here this matter I as

Matt Koranda

your remarks that just the expectation that of more double by of May from synergies Mark achieve double XXXX me, in I sort you - the you one alluded think can prepared you end to XXXX.

So just to understood make I correctly. I want that sure

€X that? you're mean million If that is get different or alluding to sort we is what something million you $X does another year achieve the next than that target, of that

Mark Zeffiro

will in go I we if incremental €X say the we €X as you’re Now to XXXX and million would not expect achieve that XXXX. when million another on precisely achieved that we Matt, into we

Matt Koranda

then up I’ll follow though. one last And stick on that here the and

of Maybe synergies could kind you see of you guys of terms five where X the was break terms buckets workstreams. workstreams in potentially kind of walk XX you in Slide through roughly those us contributing XXXX? helpful slide that in out In million where

Mark Zeffiro

results forward We’re to projects the not do prepared back. We’ll give and outcomes. and as move the you

this but probably those do different we’re XXXX goals point to prepared we’ll XXXX Matt for enter we streams not going give you the to that. at As for

Operator

next Capital BMO line of from the [Operator Gerrick Instructions] Johnson question of Your comes Market.

Gerrick Johnson

the would of guys in margin quarter second that your So seeing actions. in said price price ahead had quarter increases you release pricing cost increases materials third high your you’re now in your impact then offset

So pricing were actions those delayed?

Mark Zeffiro

notification and of question how the It's by order. obviously really give we period customers a then customer those to have

appropriate. So made were end QX at comments the of the

was base actions have period both quarter. think was we some just along distribution day to recovery resulted in the take I earnings the and ordering longer larger the the in back our delay much of it waiting the a of on but of day customer customers that released pricing pattern within a the that

a in the flow they So the income it's increases, really of how price statement. it’s not terms through delay initiating

Gerrick Johnson

to able no having price there? get through increases are trouble you So those

Mark Zeffiro

would any obviously with can customer Gerrick and just easy but a as increase or marketing I increase, never making place. as to also respect our yes, position, It's price disproportionally a saying we hurt it and negotiation flop in we sales do we obviously channel price at business. the haven't the by service be of thoughtful to can that sure individual competitive we team try

have to that pleased by sales such, I'm So round it's good and do thing. that It a actions with marketing coming going do and the cost to China team a wave we’re out a is takes effort lot know of of be deal implemented that which I of first will anticipate to to the with. able there's but be you

Gerrick Johnson

related quarter, prior implied million guidance in of implied million going kind after about your guide been midpoint shows and in it XXX XXX. the has to up XXX what basically self third And

increase So EPS big revenue your change. doesn't fourth quarter adjusted XX% implied yet

impact having fourth like in about looks you still the you're margin that? talk quarter significant So can

David Rice

Absolutely.

a that. more pressure operating currency The and So things all expected biggest had then we seen translation in - the dollar of two wasn’t to QX profit are value we've year. change really couple driving

zeroing the in part basically we out regions in as driving have impact the cost So have operating that's currency same of more we the most income translation sales in sales than happened line year but of it. the two-thirds in of op as

in disproportionate The to earned really impact about world, but the across at sales. channel sales having from a on Mark specifically we disproportionate OE also those you if one OE aftermarket the look how Americas the the the shift is the conversion growth and as other shift then talked from Europe negative to the of

into going a cost that’s glad we but impacting that we’re have Now region certainly right kick those a integration. that temporary thing, and are outs they're by we now sales

be those bit. lever better us as So on go but now return forward will the right down sales we they a

David Rice

to sure business is Just right. overall of of make balance

Gerrick Johnson

recover can what the we get exactly with lost to whatever specifics on inhabitability the a shift you. impact hurricane. little expect how that hurricane impact, The it we to and happened from more hurricane we how Thank retail

Mark Zeffiro

because at thank go I that you tragedy though business, areas with the our us would What structure, when they look prayers country our those foremost, no structures. two facilities, all a those the asking first impacted as damage, in in constant the you it of was we for recovering families the the That's are felt loss of and hurricanes, question, they country, all context have great to say our our out regions felt. and that for been of our still still and no dealing of by

dislocated though tremendous and outcome a individually company. ability ship happened as was that it to for a period. demand So is the within us our What's

regions out look It’s the that about So day sets shipping $XXX,XXX got particular that what nothing say days. is hard those to combined feel for does some the like? other quantify, were, we days shipments a good got of and three to Well for customers. two like felt for days know we that actually you

be is going the ability this rebuilding us actually construction for product that as and drives and reconstruction process do related for be My the So two and though expected the otherwise to the specific would be really set our people of it shape there's think to that, activities Gerrick but weeks’ otherwise there to to their premature worth while is driver made My vehicles. was, obviously result a of or we that to in replacement fact felt. I love mention to view bit doing demand demand size dislocation put kind that just it's able commentary sort as of starts the of number point I growth that. to and people also participate a the able we activity, a which products as natural in the a of on replace

Gerrick Johnson

it lived five saw here we years through ago, firsthand. Sandy understand I

a ship, ability XXX,XXX and to dislocation you your the said So day for two weeks.

a So X so weeks, it may five million that about shipping bucks? days

David Rice

plus also because ship than that it's and minus more and Although of worth weeks’ two about Saturdays we through shipment. it’s

weeks’ six of worth about two week shipping or a plus it's So minus. shipments and days

Mark Zeffiro

talking million $X.X or we $X the about. range of are kind million

Operator

next Research. Barrington Gall [Operator comes the from of Your line question Matthew Instructions] of

Matthew Gall

the Gerrick here of impact kind in of Coast. and hurricane tropical followed up the the some season the Gulf of on

clarity the So one of, there. trailer, far I in touch about thing electronics the the But I just as, of the you is, Americas appreciate the kind did, as hear kind talk of want one modules. on and to had region wins and Gerrick

moving what’s have see profit the the that differentiator you and product there? that of win stages get forward how forward to So that what's allows you you that moving do obviously early but,

Mark Zeffiro

module exciting of an boxes, for context control provided this equal win our we two is What would customers OE combination you behind lighting. they deals Today was and will, breaking with approximately if to behind of This a in have the size. us. the dashboard, that the dashboard

it replace We IP module. that second, for me the there's bear just technological that we'll into about implementation. We talk a related discussion with for box combined single physical will with that along a with and on comes a And the then second.

business obviously that nice module. which to line in as an to second a We new process, for control So obviously don't in they the have OE is, business. buy the us of lighting what a add module they earn being gain our is the

dislocated a that. that the terms in with obviously trailer next our surrounding with respect. ability intellectual technology of property competitor next-generation deal the the And added We in in have control iteration, process in to we've

tremendous I for them. for through this the time that engineering ties you IP of cost whole improvement they thinking deal up. this it the one customer, team very job tell a this is our way will a a and a improvement we with So are And here sizable technological the sizable that well. save did spent it's in thing thankful as big all the is terms

forward time seeing customer of a to obviously one efforts line as for this but customers over broader this take just have look standard able maybe across more to well. make we will to across become we offerings be up a it particular in other So this and not

us tremendous the for a over years. So next sizably few this contributes and was opportunity here

Operator

Markets. Johnson Our Gerrick next Capital question of BMO is follow-up a from

Gerrick Johnson

GAAP your second the in all is of release quarter say EPS so unchanged was its $X.XX a typo? to but First just after to $X.XX guide $X.XX $X.XX

David Rice

do you now what referring Sorry, diluted earnings? to

Gerrick Johnson

will that $X.XX said this Of last $X.XX, during $X.XX it $X.XX. EPS guidance be unchanged was to to quarter you but calls

David Rice

That is the typo.

Gerrick Johnson

out worked all ERP Next question, system your that? of equations

David Rice

on and related opportunities shifting tie e-commerce activity. activities, automation all done related All to business down work the with other we’re now those resources process

process way through whole our that together. making So

Gerrick Johnson

ordering reduced look And and can a was that time yet see last mentioned stronger shift quarter an customer retail you all impact about shift in in didn’t that? so you that quarter that in them there of deliveries talk adjustment retail would third the

Mark Zeffiro

in demand this Retail and think again I winners we’re seeing losers space.

and winners ability frankly - feel execute it's growth good their with seeing market. you and dynamic POS We’re stable in quite with remains good upon that based to

orders day they’re we’re patterns. seeing certain And own would these you feel those if We of ordering little e-commerce as see the got off related those predictability such know with dealing customers eventualities, digested customers are going frankly you then otherwise have or you bit normal been are expect than certain. quite either choppy and are taken the as a more that's you of little patterns expected. less versus business their as that So order

the So to for team that's we’re we’re sure Gerrick. the increase and to cycle the in make the time right seeing right terms high we able got their inventory trying so to that Americas delivery of the and is customer be at what on inventory focused in runners meet the that's requirements what in

Gerrick Johnson

you. on are the in adjusted excluded what's the then associated they going those still are your there? there earnings protecting Thank IP and with cost from And

Mark Zeffiro

are protected IP vigorously. we offering and this believe as solutions focus ongoing violate that people of They our and occasionally is included come on we part technological that we across

back they're So not special items. those out normal in costs as are included operation, our

David Rice

that to of I concern and we the angels our the business mean the arbitration us to this a been for for end This hopefully year really legal positive getting a electrical believe of time here, when that point going believe this at of outcomes side of has with it going in is in portfolio. such in and we’re as a one the the be and enterprise. to relates battle we’re frankly the excess side with it on to going

Gerrick Johnson

these these to and quantify if continue the much Can expected how you quarters? was costs future are in quarter that in

David Rice

we reasons but one at sure of let's see a after will least quarter more Yes, amount continue it didn't that couple for for happens. disclose for what

Operator

Mr. At further this the turn would like over we Mark have time Zeffiro. questions. back I to now call no

Mark Zeffiro

markets and XXXX finishing to Thank delivering our you appreciate the quarter today. the that eventualities our providing through We and It's A that expected in forward given on the solid all going effort days to days company the XXXX you everybody's think we a that and have makes for us brighter out are as everyone. eventuality year uncertainties went results. I strong. good guidance look executing be the than the the to tomorrow that

basis. productivity it's and realized efforts ever are the is greater Our rate than the on being profitability of a run company been

as we’ll you becoming about quarter. to a bye. With So that, who we are, excited who next we're talk and we're company. Bye,

Operator

Global's Thank you for participating third quarter Horizon call. XXXX conference at

now disconnect. may You

Horizon Global (HZN) 31 Oct 172017 Q3 Earnings call transcript