VNT - Earnings call transcript Q3 2021

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Operator

My name is Emma, and I will be your call facilitator this morning. At this time, I would like to welcome everyone to the Vontier Corporation's Third Quarter 2021 Earnings Results Conference Call. [Operator Instructions]. I would now like to turn the call over to Ms. Lisa Curran, Vice President of Investor Relations. Ms. begin. may you Curran,

Lisa Curran

Naemura, Good the and are call. and and our Emma. Chief President joining Officer. Financial Mark you us President Dave Officer; Executive on With Chief Senior morning, you, Vice thank and everyone, for Morelli, our Thank me today

Please will non-GAAP of available is Financials. on financial noted, the on Investors section financial We website, otherwise today's by www.vontier.com, required heading measures Information present increases non-GAAP that, G Regulation financial certain our the under reflect SEC measures relating or measures unless call. note to these the decreases. presented year-over-year

these assume During results available factors today. like to the occur are call forward-looking update to laws, forward-looking statements regarding and within including that we in report in materially forward-looking statements the Mark. the subsequent anticipate to as our that and speak forward-looking that forward-looking is only the securities that, to not on events made, these from quarterly make differ from regarding With any statements or federal developments future. they filings number uncertainties, or These may the to call, Information and we subject do I'd of statements of XX-Q. risks differ any These statements SEC we actual materially make are will obligation may over meaning date a cause Form any and actual might statements. the or turn forward-looking results statements expect of will we

Mark Morelli

core and features improvement team metrics Business is System. of and deeper quarter nearly growth exceptional our progress all proud core exceeding EMV. XXXX. revenue the third challenging delivered We morning, very performance. our and of a profitable excluding portfolio growth, The continuous of and X execution course XX% through towards very backdrop. point on achieved good revenue nearly team's guidance of Lisa, Thanks, significant diversification The our everyone. growth initiatives the We I'm making quarter despite another deployment Vontier

freight, that the And it's for order other performance. logistics for even our costs is is margin. excluding face adjusted headwinds the basis the believe availability rate as cost the able points EMV, growth, well And our adjusted price we becoming driving persistent managed by We've with and but every businesses company up and of associated standout continues basis were the encountering, the measure performance in pace solid, chain solutions levels outpace mid-single elevated. to dramatic labor while shortages. increases inflationary with more expansion price counter remained price operating world-class XX drove Demand is worsening the positive core team swift margin XX of as specific I to of during growth more This digits. our inflation. and supply our also reduce Given given to backlog challenging expedited to quarter, points strong actions We supply gross and headwinds. of the ability material efforts Vontier this margin quarter earnings chain across taken and inflation our and and real reflects

And the so to availability down of day, of really growth our comes at ability to the deliver end materials. the

partners short-cycled of initiatives simplification and continuing our you network. by a our the businesses and many Vontier know, derisk with supply through are As local chain we to diverse are leveraging

for and functional Global problem example, engineers R&D alternative base. fundamentals a virtually on of business this accommodate and one securing in this multitude rewrite in the real teams to procurement to of supply to of components. environment. is management, cross critical hyper-focused Daily solve time dynamically collaborating are our success our navigate are system, We softwares hallmark issues,

that's and reduce long-term shipping value necessary. cost. capitalize at in highest was our when focus Growth why our to management product closely ahead and they to better To efforts automate There building with leaders We This and development at lessons helped improve that accelerate quickly new to and delivery air Hub transformation. with illustrate recently from best diligent GTT. to respond lean senior how we operate these an experimentation practices. to Analytics We time end, our shared ranging digital clearly market. much and and as to complex Innovation is to more together many remain and examples innovation The opportunities. by mantra leaders our collaborate are priority customers creation customers of like costs growth agile utilize capabilities. and to recent Data Vontier to on Teams how nearly conference. VBS share commercial we're shared engineering are evident portfolio XX launched TBR simplification to learned analytics our We process of had more

time improve updated on to return forward our and we completed In efforts every are keeping reviews the on to you for our annual progress. our first Importantly, invested I as been growth look strategic gaining the I've R&D excited these and September, dollar runway traction, in our potential portfolio opportunities and the our organic diversification our and company. reviews inorganic more markets. positions a as highlight stand-alone never about strength of

deliver couple solutions Solutions They've and high-value you Virtual and customers just model understand Teach-in. The focusing their and on about the value. growth, invested excited problems. closed immediate innovative an in that and weeks markets learn team characteristics the more they recently of predictive about their and a and They Retail to high-value bring making of the importance acquisition experience workflow solutions DRB solving attractive Our playbook of will exemplifies DRB uniquely behavioral economics. consumer is during with the I'm analytics for business company depth wisely difference. engage deliver of

than our of share We're to growth operating single-digit for share and revenue XXX the outlook. assumptions XX% guidance adjusted raising XX% of EPS This XX% or the diluted to growth more per greater high per points. net excluding core year-over-year than core EMV. $X.XX to the impact basis year This of XXXX Moving expansion full from to continued expected represents includes impact DRB. include margin $X.XX adjusted to

the the XX% We the cash free of expect second the tale as conversion fourth With diluted communicated adjusted of halves due EPS half comparison growth supply just This We limit opportunity, probability capital. middle the perspective provide lack EPS assumes manage linearity mid-single-digit reflecting the beginning working I'll over upside look making two With guidance core the the a for chain flow of of quarter points our to revenue dynamics on turn of decline that, backdrop XX%, to the the we And to believe rates. to call best initiating and the as we as that year, range reminder, are highest XX at pressures to range. approximately $X.XX of net Dave the the financial. in adjusted the core $X.XX. constraints we to to margin decremental unprecedented contraction of basis supply XX a operating Dave? provide outcome. chain the XX%

David Naemura

last Thanks, non-EMV offset million of earnings net Adjusted the businesses Mark. growth in translated an were price, revenue our and and non-EMV period. in XX% grew prior America second earnings year. EMV revenue tale with disruptions $X.XX. markets. was Mexico, continued the million, of for was two driven earnings This in third we from quarter and by compared which third growth offset roll-off we the approximately our for strong margin digits, it. $XXX approximately growth $XXX mid-single operating The the to directionally as consistent quarter by QX, our operational year companies. points million, to X% driver of of driven adjusted the lows core our from year in as which demand increase X% revenue core prior share Adjusted the from managed high-growth material which In historical third grew and XX the inflationary the and third was halves period, across year $XXX solid seasonality. to inflation, regulatory per of execution demand anticipated recovery persistent in fall-through quarter pressures a in which and primarily the businesses, approximately by The operating benefited as and strong driven X% basis and chain North amidst operating was prior Sequentially, sharp in growth the revenue quarter. supply profit well expansion as the of resulting was in pandemic against referred benefited growth mostly regulatory-driven of in by of Core the impact increase through primarily a strong net the the half adjusted quarter,

cash on margin margin expansion a we executing stated, expansion, continued and and adjusted of the low core XX%, on growth XX build $XXX flow initiatives, capital quarter, adjusted more material of raw basis conversion inflation gross XX approximately during we drove of pricing headwind the a million remains our points generated working levels. basis free and focus third reflecting through As In quarter, points profitable $XX very at adjusted operating million, which of offsetting Mark broad logistics. actions of some the from than of team's approximately

free federal this paid XXXX of our our incremental tax second year excluding cash the payment than year-to-date, XX% to XXX% flow is after the and conversion approximately Importantly, spend. quarter more in relating

prior Additionally, our the the net leverage in closed completion quarter, up DRB which EBITDA, of turns adjusted reflecting acquisition, September. from successfully X.X was X.Xx the stands at

fiscal EMV platforms. the and X slightly at in regulation declined core GVR of due Mobility revenue to roll-off our Mexico. as America Looking X% in performance Technologies the declined of the North

and grew quarter revenue is grew Middle On low in markets, the further partially franchisee high In highlights demand demand and teens. through our by of year to momentum robust revenue height as Excluding growing Matco pause environment. this our a and environmental against was momentum, and of quarter in regulation. pandemic X%, strong the Matco platform continues retail at impacts. which in the core the and chain GVR the from year-to-date the Repair a basis, a strong recovery solutions of Repair markets the in challenges third core single-digits, compares our backlog supply a solutions, strong compare Mexico demand teens which East elevated revenue net bookings in high third we Technologies Diagnostics the was the demand growth saw the work as respectively, XXXX in during high-growth driven especially continued of growth Technologies reflecting high-growth continues base, quarter and additions the India Core impact by to markets. EMV, single-digits pandemic. high environment prior following experience distribution with Africa in and offset fifth Diagnostics high-growth single-digit and low consecutive and up continued fiscal progress remain

sales total regionally. at company Looking

high-growth quarter make Middle the India, progress East a result in third Mexico North by compare, and growth Growth I the grew developed in North America revenue non-EMV America portions Latin continue was our in business tough Western the as mentioned, EMV we Africa of Europe markets, in and markets and on was of the markets impact single-digits business. America. our in including total the important up slightly of As in GVR low to as strategically offset and the

make we remainder will of recognize of objectives We planning position of to a to still we actions be $X million next charge a also that of demand We around QX bit will approximately the shifted XXXX for progress $X than This restructuring XXXX, the that savings $XX recognized and from our and original relative the to align of the as previously quarter would third of continued in continue our means million now charge approximately a environment. lower anticipate profit charge achieve better for quarter. year, we in were to we actions million will We the on XXXX. pace remaining we company the anticipate first a strong improvement beyond. that

outlook assumptions. the to Turning

in acquisition For XX% our approximately greater reflecting full maintaining of $X.XX We said, adjusted basis that core growth inflationary initiatives core We we at believe anticipate still execution that earnings rate to this being we quarters reflecting growth the XXX range core benefit XXXX, are of conversion, partially conversion levels. in around XXXX, in of low business, the and with our some XXX% to excluding the XX% our on the our pressures, initiatives operating and around in continued DRB. raising continued capital $X.XX expansion free year. to for to includes year constraints share to seen a outlook $X.XX, $X.XX tax by free cost Shifting our growth single-digit mix. planning of typically for than from to X target profitable XX%, on payment per be and execution management and logistics tax impact points we full in-year revenue cash see reflecting of and contribution the around offset this, for historically the additional we year-over-year, about chain and would momentum our combined of had guide margin that very being XX% full persistent on implemented That effective flow our are and high have of supply quarter. while And federal increase cash tax the year will conversion some our course, for This, pressure be flow And fourth were that quarter. XX% working expect. consecutive third QX. we put level to

revenues single-digits core a a as of despite while decline expect revenue still tough EMV dynamic, expected result grow digits a compare. We compare the low non-EMV mid-single of are to

reflects regulations prior and to with margin be the XX tale period, the basis points. related single-digits. operating consistent dynamic, the to EMV when entering two up we XXXX This on expected Mexico basis, the to XX growth strength Looking expected X-year of a high of the uniqueness the dynamic Matco, core year. is in compare is that communicated difficult Adjusted comps of contract to primarily the year non-EMV fiscal stack halves given

third With we our earnings As execute And take share will . round attractive to the that, a of than other sunset actions year, in impact translates markets. as turn $X.XX environment. the the to planned of $X.XX dynamic ability drivers and earnings very pace I out of to more with it to per into Mark demonstrated stated, we adjusted in direct in on offset resources our end are Overall, this growth Mark. back to to advantage EMV quarter

Mark Morelli

Thanks, Dave.

I that see, and profitable better Teach-in and businesses. In about mobility higher-quality, a the secular to growth Retail with DRB more to well and what feature I I and hope at and come on the XX, positioned work a opportunities scale where wrap a of November Solutions of will We're industrial technology to portfolio market. deliver solutions exceptional high-quality into company. you attractive VBS that our Before planet. will teams, you execution, runway give I dive build and up, our growth innovation growing of We're culture GVR with progress retail-focused important want deep diversification. Aaron We're drivers. remind our a opportunities the focused, better into see excited to of initiatives you sustainable a long It on portfolio Dan expansion better closing,

drives of record profitable on get I'll track we're long-term to And questions. we by call that, Lisa so With optionality can staying strategic laser-focused more the to Our and transformation, returns. and strong value over delivering committed generation turn your compounding our cash will. to creation growth

Lisa Curran

for Thanks, That questions. concludes comments. Mark. now we formal ready Emma, our are

Operator

question from [Operator Citigroup. our first Instructions]. We'll Andy take with Kaplowitz

Andrew Kaplowitz

swing swing XX%. you think Mark in the to performance? EMV we QX, QX strength price into greater update your us QX tough But know about or the if you is big And cost isn't part about on in overly and Dave, us versus thinking logistics but with could that how performance material in the negative is But QX color surprising. Matco. incrementals issue costs in that margin and you than as and does takes comparison you're I QX? mentioned the XX% decremental, mentioned positive to you of a more of Obviously, give QX and for really the into puts in decrementals possible? risk good 'XX, price can

David Naemura

is Thanks, Andy. Dave. This

year ourselves we giving we'll to environment. pretty we update into end year-to-date. XXXX. look we want or We we we year, been What can guys still the I see towards dynamic you, as positive steer where will we before fourth, price/cost exit tell you of an obviously the going out it's towards for good revenue. Obviously, of as off, biggest that As don't to where see be we that's the a year far have we look anticipate action as exit. the here positive work any of so by in we're the we there. position and margin meaningful tale The two And we was improvement EMV sit see kind through But today, -- as pretty we staying anticipate coming accordingly. halves manner, next that price/cost a

headwind we would the I be get up fourth. that. there with mix I third you've was So [indiscernible]. finally chain improving add on a But don't associated from picked can the and things as And supply a dynamic, pretty think the that, see into we standpoint,

worse. bit a probably fact, little In

And some so built caution we've well. of of in that kind as

do given That to small we in talked have And We incrementals against at in look saw You it decrementals. revenue much some loss I conversion to uncertainty is on course well as the numbers the tough timing. impact lower probably we've the of bit fourth XX%, took which the we compare, decrementing magnified We and than the this little obviously about about way incremented incremented some top. on lower the through third. a rate that the growth with a year. incrementals we're a think has the as the actions is

Andrew Kaplowitz

quarter And a as to in GVR maybe grew relatively EMV into down but mobility wind can Dave. you more that about be orders, in how you're told 'XX a which mentioned I continues headwind wind seems color know then from thinking single excluding 'XX. good, helpful, you Very EMV, there'll down. digits, us little give you still us high last similar

as growth customers from go world in you faster-growing for 'XX? do countries we So customers developing developed into instance, such promote India healthier as see enough or demand, to

Mark Morelli

growth EMV that good initiatives there. Look, that for taking we're about ex the that feel really really you Thank driving I Yes. are question.

really up confidence of in is We through. saw solutions, growth auto what you're through a there me profitable are reading parts business. of we growth well seeing our hold that have environmental, retail and strong think set some initiatives as Matco, I they're that And as repair course, taking continually. gives spare it show

high-growth you that a think the There's particularly been initiatives out mentioned markets. of really strong. there, and I So have Africa, number India, Middle of East

a lined pretty got same we them. far. full go -- the had see we of got we've to So with deliver the into lot performed slate year. continue around when really that a They you we time, At well so momentum year, last up and next initiatives of that. in DRB the what we've weeks on, good X been really We've we impressed a for

to that our I that going and you're excited really we're portfolio, to year, nicely next add through So think see read to too.

Operator

We'll Wolfe go Coe next Research. to with Nigel

Brian Lau

This Lau quick. Nigel. is I Brian talk Maybe for wanted about on just to Matco

Backlog X adds. quarters strong in a of franchisee remains So row elevated.

you how adds? ramping the thinking are franchisee still XXXX all then franchisee an about could update Just of adds growth? into on driving geographies these And perhaps provide amount for available you some

Mark Morelli

is continuing. continue strong been actually with to a backdrop they're and business They're a Yes. they've that's and Thanks, I open lines. feel which up we out here that. reading understand through The territories look why to well. To building asking is Brian, technicians their toolbox. in of the making. to XX% They're to for that And question. would environment higher-quality been say, buy. The which compared really unique at good and your businesses. available stepping not that really they're When as really be performing in answer, continuing higher-price well got are the we've cash, flush investing that peers really kind is the purchases out, there concise And you're as that we've for on our diagnostics, product actually, about -- our space. progress in item, I to Look, is us, about of high-dollar you

sales, think a you And when advantage. about real so that's

products that bodes other to The for new -- business really for every we is we've that about that which that market. this is XX% thing means got year vitality, are that a it well strong bring

we're into vitality, as which buying. because I'm providing them year, will to that key next And solutions we go particularly that want very we here so the and technicians confident is can continue continue

forward. the of to backdrop, we're we're to take advantage going going pushing and it strong So keep

Brian Lau

normally Great. then any the revenue, sequentially? more versus do seasonally the 'XX just of weaker a With it follow-up. some to quarter a And XQ like pushing what's quick you have right, visibility sounds into

Mark Morelli

But give Look, February I is more is normally you the tremendous strong, as we're about profitable think there but 'XX from the demand well backdrop in color strong setup, as we'll momentum growth a initiatives. great as way that on environment thinking these we do. these

the think setup I So is good.

David Naemura

probably 'XX. we'll backlog than come enter the supply to I the environment. entered going more would add, fourth down Brian, again, to with quarter, we But that it's like 'XX

want that and really we how to that will go our see lot towards So develops, a visibility.

Operator

Tusa to with go Steve We'll JPMorgan. next

Charles Tusa

of for about price/cost line, Can look next what today, you you snap year? kind maybe talk of what you if just see the like kind would

David Naemura

year-to-date the for price/cost, has we this area focus year big And us. favorable. look, is you of Well, and been know, always as pretty the end through anticipate a

I think read the on next it's year. -- we're for going environment to have inflationary to get a

would said we the to we're setup work for I beyond earlier, Part but P&L that do our Steve, all drive year, inflation. actions. in to the will clearly the leaning We develops. of to from as and add next need think I also that. of parts fourth, assuming see And how that is want the that? As our we it. to I we're Mark, But for make we say worst of have profitability that the you response price/cost as that impact there's into items to think plans

Mark Morelli

think lot environment other the I that feel going words, Look, in of really we've way is good quickly. Thanks, In are the key so headwinds worked that And Yes. Steve, to that through not we Dave. far. a is change this. it this there's

rolling on of that initiatives. initiatives been early we've you pretty on we those as initiatives into counting out ahead into this dig go on year, deeper. like. and we're it's environment this we're to detail But off. underway, are that even that from And next curve would We based be more have I'm happy all strong get any paying to really of a set clear

the of on the mindset that I continuous our get actually and as the that sourcing efforts dig to we enables it have onion simplification is to us deeper great on SKUs example the and matter. to alternative of think we peel that of continue that better improvement chase, components A nature need number we that this. that's this really reduce

a we're think be envelope I pushing going even more. that of can sort to into so year that's new next off that And pay

Operator

We'll Obin, next Andrew America. question take the Bank from of

David Ridley-Lane

labor This maybe seen just affecting is willingness Ridley-Lane availability, have in anecdotally, chain sort mobility slowdown, of negative inflation, factors ability we're I'm the supply David new orders your on are Andrew. some any salespeople hearing for issues? that your order wondering Just customers' -- around your tech, pace. if and sort of of around to you your cost wondering from to start projects complete projects these

Mark Morelli

answer, a fairly short Yes. no. It's

you that understand pretty at I there. we've of that, most really finding doesn't through that, customers feel of there, those think think -- certainly, labor-constrained maybe it like are I'm out it been but read we're I pockets and in I there ourselves. saying effective out all when to markets And working through doing exist, that. that. And the solutions ways that not up. our there's add in doesn't some I But

David Ridley-Lane

terms versus of quarter some year-ago fourth I down were getting benefits, third on -- you what's margin of just the benefits getting then of quarter in from those the in you kind guidance. a think order of worse? incrementally the And the to bridging us give we the onetime it. Could core of most have Got operating components quarter rank expansion

David Naemura

tough XX% do which the top that full it's me here our with product within item. for I a I but decline high-margin this that, back line line, in Well, decrementals. And associated obviously, the look, is EMV bridge is you say would reasonably will to to steer our venue,

associated go. assume some the continue we we as we the from upside up tighten tightening dynamic impact, there's price/cost impact as but assumption, that probably we has margin price/cost mix would to So with that that The to continued progressed, offset that. say the so see I years margin should

I those the think items. big are

Operator

next with Mitchell Your question from Julian Barclays. comes

Patricia Gorman

is on for This Trish Julian. Gorman

Repairs changed can a expectations to And that's little all? more and on so Diagnostics talk your if the you environment, just on impact in back its XXXX supply about bit then maybe headwinds GVR at relative EMV for guys and

Mark Morelli

for been GVR you the we risk through that to And has happy I've said and question. some our through material when of factory-related been availability. work to that through take as predominantly look we've specific admirably think the environment got GVR, we've issue Yes, Look, that remarks, really the worked at that in biggest well. managing the I

we're the to there think really of I efforts that off. pay we're proud doing

Diagnostics talked You and about Repair.

that prepared there And course, better. toolboxes. been shipped of on a chain But for And no we've can that. his remarks, there. we of got factory a a got lot we question lot both about there's Of we've products we could supply if because risk, solve issues as in source accounts, have more, Dave said

clearly I continue issues. admirably I rise availability, risk to we think about specter of when we said, about through in progress. think But the it's as there, on mostly material how supply, think it so and And somewhat but labor shortages doesn't material work well. a And work that's availability you it to the on

bit to So continue work environment, cautious a it. on little optimistic we the we're can we're but

David Naemura

$XX on the is in going is that for to happening And outlook as point, how to decline. we're today, XXXX year. which together which provided the no exit to EMV EMV million could XXXX, fourth $XXX But see I similar think where be our we we we that to update what see year-over-year million impact the previously of the comes

Patricia Gorman

it low effective? become pricing typically, just both of what ballpark, digit the typically Great. does announced very maybe a cadence just when price then normal to increase, that works for mid-single how And take then these segments, it just That's is how maybe us of helpful. year a maybe? follow-up. the in Can kind long from remind of just like in typical you And you

Mark Morelli

Yes.

year you inflationary So up basis. last got could pricing pricing at time our the We end there we've of for I for recognized that is would say, we not we for be on the analytics pricing -- in we were we number XXXX this pretty good year. strategic that going beginning that was the deep a to was the was But as early start schedule an had a actually of of started a that within of came on been. did normal because we sort environment been And of sets efforts. year a price schedule strategic simplification this that, out about take. actually some increase increases that opportunity know the it's as year not What

so got through increases a on -- on start the an that accordingly. read year based of price And early number we and getting through

I So think little prosecute market. view color continue that as opportunity we net this for -- how going the to gives and to in I you us how a maybe think on it we're a what about

Operator

Instructions]. our [Operator with from take Berenberg. We'll next question Buscaglia Andrew

Andrew Buscaglia

to the lot of price/cost philosophical So I of kind kind is a stuff of want taken, ask near-term more just so a question.

would What be going So in strategic financially showing I the of I long term? growth-year-type beyond M&A forward? deals market, think longer-term of are to was change headwind. wonder -- you priority. the It a the that acquisition, deal. towards that areas, know term, stock some think of where investments? won't acquisitions But that they How I'm serves you think, sensitive purpose wondering just the like albeit EMV growth investments with I more if I but at prioritized, multiple, some or or DRB definitely help of offset some helps the the do kind still kind I near great a kind and

Mark Morelli

but to deals I want pipeline. give answer of specifically. because me that's think really range I see a minute I do We touch Look, in want a great DRB, your our to question a on question. just

super out that's excited are really We and something cultivation the going I our at you balance software. adjacencies term. at But over prepared about that I that coming at about early-stage my we're on. this out mentioned think provide We're growthier growthy-type like excited expect should think looking the there's we're there. been technologies in more are we're reviews. looking looking DRB. And strategic space hardware deals bolt-ons. And that of we're it. excellent I balance And strategic an longer of would And remarks both is

space to of I think a cities, But let telematics, asset. DRB top does payments This of digital platform. monitoring technology really touch a we're This integrated it And is It revenue layers a solutions, base. also great embedded me kind great workflow name to is think an software. retail our the end-to-end where on of It's it's technology is got on smart and I and about this going. indicative few. think solutions. because it things combines point-of-sale deeply just marketing just recurring like and

so happening we moving you that's And that And like is what's see also the as kind of things business stack. well. up exactly the a technology

more So to come.

Andrew Buscaglia

some Okay. I is kind And list? to in for that would fall share next the if time still -- where with realize up I list? stock your move buyback that. -- year, of priority Yes. It your where take do -- might into still agree the floundering, Helpful. of market And that. priority hanging you just agree. that kind in does out I kind stock the of if think here is does

David Naemura

think the primary right shareholder priority allocation maintains on we think opportunity now, providing Look, things through return. capital our but the to continue M&A. And best deploying capital I on can Obviously, change say. would I that's for future, our is focus always that in

Operator

go to Mason, We'll next Baird. Rob

Robert Mason

you maybe business. environmental to year if view how the the quarter. the I see versus here wanted quarter to you side solutions could retail curious runway -- environmental I into see how the the you juxtaposition in that growth on this and of against fourth next spoke you in was

Mark Morelli

clearly to less It's has and are products A EMV. environmental fundamentals of The there. by great set solutions drop got well there. think connected solutions impacted as it. workflow are I that as

to that And so opportunity, growth push that seen. you've we're outstanding continuing

marketplace. that of And And get we've this think launched also really to -- products in helping so us we're better innovative number market really past traction I year. a they're

about every we are, that. So feel going and good where we're on to opportunity press we

year, momentum. I a that into lot going good So also feel next about of

Robert Mason

Solutions as Retail well? perspective In

Mark Morelli

we great on Well, on the get Solutions Retail talk XX. thing is to you November to

line we as retailing problems how that opportunity. you, what up We'd well and wash. do better car pretty a really we're to number excited as only not customer-serving in looking that love we're that customers of on are help sort convenience So of terms sticky us to bullish can of at -- showcase business

So really happy November in XX. to on depth talk about more that

Robert Mason

business? sit We'll good. was Very tight took case follow-up, that you there GVR? Or on then that. backlog Was some. in the a just mention as that more And in was the down Matco's that

David Naemura

had out sure. we more talked door constrained, we for wish get supply being backlog We books, off and to GVR. in have it further. the more chain taken We the revenue and was more about been able down would That

Matco primary getting So we're and in more talked GVR, where and But the high levels. down XX% almost probably running than GVR were we at challenges little about a backlog year-over-year We higher. very Matco. saw

Operator

from Our Julian next Mitchell, question comes Barclays.

Patricia Gorman

This is again. Trish on

me. Just a for follow-up

And or orders up year-over-year, What mid-single the have company You in ex GVR mentioned if versus kind you and being growth digits. you'll Matco that total the I backlog of if you were orders quarter? mentioned GVR by disclose growth that? don't know

David Naemura

Yes. a on down mid-single about basis, that orders It's tale heading And here. halves total we kind dynamic. basis, of digits that that talked really On into up. year-over-year EMV of were we the two an

see of that basis to bit, down the sequentially, So tend year-over-year impact orders come but really on it's here a seeing EMV little I'm we in the third. a

see and So picking the it. really EMV things all demand non-EMV, continued dynamic robust we environment most what

Patricia Gorman

that given of would those dynamic. talk with dynamics. a up we'd I kind think by following just subsegments? of EMV on maybe just difference Can see little margins a Because And you about there bit the

David Naemura

is for up granular above impacts margin I on all Vontier too well. get but margin definitely here, for EMV would and don't fleet for, the as GVR clearly we say, Look, Yes. average

as that benefit of And we business lot a a initiatives we so profitable that through work growth from. that's the a strong also us for get really we lot that, hoped Matco some margin because Matco's But see.

Operator

turn to further over I Mark. no at will program time. back the are There questions this

Mark Morelli

this Vontier team embracing believe the and Vontier I achieves that's entire for establishing than Thanks the take for Emma. want to for us I a now results. on outstanding core a been driven of a Look, joining team as because our their important Thank values you, and year more core work have Yes. for opportunity value chain to that today's and company thank good for the call, day. particularly supply

Operator

conclude does program. This today's Thank you for participation. your

You at may disconnect time. any

Vontier (VNT) 6 Nov 212021 Q3 Earnings call transcript