MIR - Earnings call transcript Q4 2021 | Mirion Technologies, Inc.

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Operator

Greetings! And welcome to Mirion Technologies Fourth Quarter and Full Year 2021 Earnings Conference Call. At this time all participants are in listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Alex Gaddy, Vice President of Finance. ahead. go Please

Alex Gaddy

Mirion will Investor Gaddy, we and be the statements announcing on XX-Q everyone, those Risk actual full before for moderating on Mirion’s is I in joining forward-looking ended Good from that and results Quarterly thank caption the statements. presentation and I started. include would for discussed we A other differ call and Finance actual Alex name Report My financial remind Factors cause and XX, materially housekeeping and discussions you Reports this projected XX-K event. The in that Form few results with will Form under from and SEC President the at the Mirion’s SEC. results could Relations forward-looking the earnings items get of time that December morning, are with XXXX. today's you Vice like Annual may to fourth filings differ in the our file to year during time quarter to factors

this followed comparable Principles. financial by of to this measures for session. call financial GAAP financial As stated. ended prepared fourth directly discussions remarks be call. also Reconciliation will can unless today's non-GAAP December in XXXX Generally discussion quarterly otherwise within in Please most measures certain Accepted will a that this prepared be those appendix with related were quarter to accordance XX, during include presentation of references a are the reminder, note conference found the the The today's measures not Q&A Accounting that

at can today, will be IR on Our earnings presentation Mirion's published be and ir.mirion.com. found transcript and website

Officer; Kingsley, Brian the on are Joining Executive Chief Tom Board; me today Logan, Schopfer, Financial Founding, Chief Chairman of Officer. and Larry the call

to of Board, Now, it Larry. turn Larry I the Kingsley. Chairman will our over

Larry Kingsley

earnings and for our We announce we're XXXX, Thank well fiscal your share fourth for quarter and Mirion full business in year everyone. interest our XXXX. pleased expectations results you, Alex, the for and to as appreciate to year good our as morning

I and the Before a to ‘XX my call highlight few key to thoughts from to like I'd Tom, heading some turn share take of into takeaways ‘XX. on moments the company the to over

As its there Mirion and continues a evolve forward. excited company to develop journey, about to be is public lot going

across I product morning's call. All Mirion highlighted a positioned I what is you in that portfolio. in portion diversified remain call on environment key believe capitalize of is like November same from the company's intact to three to I’d our of themes we reiterate the how to want my this leave and macro favorable well takeaways with

of still First, the surge challenges company key become headwinds global labor of state strategic solid many business overcame results. Mirion supply quarter Omicron advance the the fourth variant, delivered the the a of during wide chain, public initiatives. the to supply its its the grow and and a to company variety needed and was able of Between effort company,

includes This across acquisition. specific growth a industrial are and medical sustainable. and both product pipeline, segments and the M&A company opportunities by trends supportive portfolio Second, proving macro CIRS recent exemplified in the the the healthy

gain than me meaningful as to growth has at can taking adapting how history diverse to the his delivering running to unique an and guide over Mirion’s is into probably going as markets, for expected. team a more to a executing is investors Mirion that importantly, Mirion within the reiterate to deliver being on all and business his at Logan operating again This company his differentiated Mirion’s story best, Mirion strength talented believe with I'm nearly Mirion company forward. of is. operating expansion I decades a In continues in returns develops and what there team it we is Mirion and markets ability partnership and opportunities. and with public public, is and return he company just strategic to outstanding meaningful efficiencies. and and After I is margin that ever priorities positions area barriers does what of entry. its to a ability once the high The It's portfolio cost Tom has in system product leading confident the underlying opportunity of its a what company. the as its noteworthy. the important create for Third, particularly consistent returns course Tom, to is for for reputation and has see future with on I solid a on strong most focus resilient chosen the pricing successfully well accomplish enhances execution am Mirion requirements excited two believe strong needs will Tom promising able and to

pleased as environment who are We a over the With companies facing to us and walk will the public through operational all some company, at given business Mirion especially that, in how performing new are moment. turn I'll Tom with performance the challenges call is detail. market the and the

Tom Logan

Thank you, Larry.

we do incredibly driver in environment. an keeping a the public The through you become our is the to and candidly get to each and were relationship a Larry’s table. to above ally beyond strategic globe relationship. the to people sparring able safe gone let the to me X,XXX and enter environment help strength our colleagues in, and the I'm incredibly and excited thrilled that work say operating me the strategic also the but into about Before arena, paramount to challenging full with of partner and are healthy. It’s that have I the company, thank echo us relevance sentiments valuable to experience, across I’d reputations that have Larry an have dive and public who capital, of to like that time. running business back my I'm domain brings successfully the I’d

have a in and lot look forward to to well XXXX. positioned we're to very We execute

revenue exceed the horizon. addition in outlook and in Medicine we are Instadose minutes with like international Nuclear highlight to our for exciting take in of markets. based beginning to the deck, operate market high to of growth by digital our stable begin our are expecting for of We're in XX% view medical Dosimetry, I'll this company reiterate positive Medicine and and expect total and the isotopes longer with We improving growth space, term by growth recurring accounted our to existing for employ in and gaining a planning In In I’d Nuclear of innovative and a our maintain outlook Dosimetry, the be medical supply deliver Now medical this to like subscription few Theranostics total platform supported than digit four market QA. a company we with XXXX. maintaining many space encouraged for on year. demographic various positive we on volumes occupational revenue. slide supporting favorable customers which chain show trends the factors to a which share segment, I’d of our including half over business model, XXXX applications. converting high goal more to and upcoming operate this Radiation single outlook revenue across Therapy in markets a to

short demand this our confident of acute by supply While we’ve robust remains back and in products half for the the track. term that fulfillment will extremely some chain end be first space, experienced I'm challenges order on

preference for upon clinician therapy to strong demand enjoy radiation independent pandemic business continues solutions, based assurance fundamentals the Finally, dynamics. post and improving demand quality

pipeline new software excited first platform, QA calendar ’XX, the our SunCHECK. our about incipient We are and product industry are cloud year heading launch workflow in confident of into version the of leading based particularly

the Turning growth XXXX. mid-single expect now to mid-single industrial segment, to in – XX growth continue in we digit

end We the positive are role especially regard supporting by in movement. nuclears decarbonisation to power global the in sentiment the with markets, highly encouraged nuclear

during role accelerating We to our nearly the to reduction continue In tailwinds In continues and space center and natural China fourth solidify replacement nuclear decades push. driven medium installed life new longer gas to outlook. activity to industry. in stage awards high Brazil had opportunities The as my major CEO, continue anticipate is happy report in that conditions I'm the take are demographically healthy, see and is the in strong the activity I've expect global also increasing prices. subsidies as we seen candidly positive to build build we new from environmental build quarter, two which carbon term emission better government cycles, base solid. extensions, and and never new decommissioning

forward, supported funding. strong stability of We're a our out market and product the continued new from benefited research expecting stable regulations growth aided space, we’ve consistent going and and Turning government relatively by stricter environmental pipeline. by lab

the we completed on begin into to diligence. results benefits acquisition that during of turn we December our fully forward by company our integrating to now earnings like identified presentation. realizing shown Let's to five model December fact noting operating I'd in the the the slide and and CIRS look of our

For organic compared same the quarter we to period XXXX. growth in the delivered of X.X% revenue calendar

Looking at growth. the revenue organic full year, we achieved X.X%

is Backlog quarter, incredibly the I'm health primarily been As hard supply including reflection qualify very their in to I'm was our chain working suppliers agreements our that term the quarter have backlog almost We across our in engaging end efforts. clearest of I longer this growth working Medicine orders period. which globe we're the and constrained teams is business offset shortages. creative been I year. the the by component $XXX to proud earlier. that of has at of order the Nuclear million the large mentioned nearing had medium continues the affected We've dynamics, of optimistic year for sales negatively outlook. intake additional been mentioned who and and solidify to earlier, of and to our these end difficult hard the healthy availability, the

pricing to In to trends actions environment, chain that with the supply headlines. recent assertive we’ve dominated inflationary counter growing the addition have challenging been

before P&L, note our XXXX, reflected financial of performance. deliver toward back implicit the in actions of the expected least are of important at to Given half inflation. there our through action it’s outstripping of today XXX expected growth the backlog is flow basis that prominence Executed skewed an is to pricing to the points impact lag price

performance, financial dive XXXX. quick our run to I'd Brian Before through I expectations like it turn deeper a for our a for take to into over

XX focus between we XX year-end of XX% between reminder, the XXXX. reflect growth Reported year impact from and we December costs. X.X% if X.X% is our company targeted converted to as expansion a ended are expected margins XX, December have months a on be are of X%. to will XXXX XX points three basis plan. growth key guidance fiscal a organic includes X% and our EBITDA areas G&A our of As exclude XXX with June operating XX% revenue and and to public to for this Adjusted the XXX of team execute we There adjusted

commercial and pricing First, excellence.

already actions, an value to tools. we based In are addition executed of enhanced implementing pricing set

is will assets. our we've we addition which continues Second, investment model, footprint operating initiatives. streamlined company and over Most continued complexity savings its and the time implemented integrate in strategic notably industrial to cost and acquired a optimize expect reduce newly

new that plus should of pricing strong are year. already combination ensure the Finally, the for underway operating initiatives operating leverage tools

look encouraged order We trends markets. and we're books enterprise; we our in underlying have lot forward the to the to by the a in across see very

XXXX discuss Chief our the will let detail. that, Schopfer, Brian. in know financial with outlook our Brian over baton to So Financial me and who pass performance Officer, more

Brian Schopfer

thank Tom. analysts work first I'd you, a help like and public and thanking us company. for taking also dedication investors close to get hard end on team their the Thank our to started year the for to line as our out like by your let's look that, to And and that get fourth the time slide turn deeper far. appreciate continuing We our time the we our for established business. seven have to results to quarter. to take forward a thus know relationship the and at look with I'd

from period solid Total and due that total growth mentioned. compared Tom business, Medicine the with by adjusted previous XX%, same company growth performance of offset performance with revenue challenges XX% primarily EBITDA our of industrial X.X%, noted, a Tom team the the As grew year. organic of by the revenue our to delivered calendar each Nuclear

by segment, XX.X%. with Adjusted revenue. Our expenses our expenses in the company the a investment continued associated margin EBITDA medical by margin the driven percentage declined quarter contributing basis while quarter, growth of requirements. recent by and EBITDA segment offset total basis operating were higher to million. is gross million further to higher P&L focused adjusted adjusted for XXX margin Mirion's by corporate $XXX.X This in expansion $XX.X company the to total points medical expanded to acquisitions with XX down related points public expansion R&D slightly XX% of gross sales was Adjusted

delivered X.X% of Looking at growth XX% our we adjusted-EBITDA year, organic year-over-year for revenue of growth growth performance XXXX. revenue the in adjusted calendar and XX% with

Our margin was of EBITDA points compared basis with public adjusted and adjusted by but last to related XX%, by margin EBITDA impacted year. gross going points the by to adjusted XX margins. increased XXX margin basis The expenses acquisition the to operating decreased Biodex diluted XX.X%

by Next, let's eight revenue revenue medical eight XX% at starting quarterly and on look was turn to year flat. and a up to slide segment, over with nine relatively results and slide take segment. our the calendar was Adjusted organic

a has the contribution from acquisition limited growth organic in XXXX. Sun Nuclear reminder, a executed of December As

saw our impacted supply was for XX of Medical the basis medical as Medicine impact segment this the Segment Nuclear chain same expected. was margin we within point from EBITDA last driven adjusted issues in period year, growth XX.X%, by primarily organic recent mainly decline dilutive an the Our The business. by acquisitions

We acquisitions the in advance and coming our quarters. continue prioritize these profile these of to as to improve margin efforts expect integration the

with adjusted mix, Turning year. up remained to slide shows of revolver year. EBITDA strengthening of compared industrial we period segment the from last and same had available organic structure million. $XXX equity, inflation I'd Adjusted the earnings liquidity deck million last U.S. the at to like also of XX revenue our Slide looking flat growing was current key revenue some undrawn X.X% to same to X.X%, EBITDA $XX period due of which X.X% nine, dollar and growth margin adjusted Industrial that our highlight cash-on-hand $XX capital profile. impacts. our includes million and items reported of

free and contributed leverage net of flow working XX, EBITDA to million for the net was prior Our performance after cash cash increased XXXX our $XX to compared positive ending in quarter December Adjusted adjusted net the use year. Higher six resulted CIRS acquisition the totaling in a solid period change. positive the nominally closure. and capital month

XX our Finally, on through some slide full XXXX turning to go guidance. details to year more

million issued growth X%. reported year to expansion, margin basis X% targeting is range is EBITDA adjusted is CIRS EBITDA lastly G&A XXXX the X.X% explained organic and points Organic of be should between of revenue for between to Tom the and company As we've expected calendar target adjusted XX% $XXX and earlier, negatively margin for EBITDA adjusted million XX%. guidance $XXX revenues impact expected the X.X%. expected impacts deliver growth. of year in to X.X% and FX approximately We're to public excluding reported is XXX XXX X% by adjusted costs. The to

count flow is Adjusted and projected will positive is $XX million incremental to an $XX.X year adjusted for in approximately cash million the year, in $X.XX basis expected between XXX million. XX% To considerations, modeling share estimated us XXXX be free result tax U.S. public with per expect turn to Tom XX, are back close our conversion of utilizing XX% and a of over rate effective as to we me are let out. FX to rate to our Euro dollar to that, help $X.XX. guidance, with to And December establish expect G&A which margin company points EBITDA reduction. We share cost adjusted $XXX $X.XX things outlook the assuming be and for EPS to outstanding

Tom Logan

you, Brian. Thank

up I'm you a with for questions, closing thoughts. Before we few open just things to leave going

focusing the was candidly internally through huge journey pleased huge on very forward very again, was for looking a as as with again we're I'm a and the we results, company. lift, a year we a Firstly, business much to XXXX. but resource XXXX public became dedication Mirion huge It very,

are finally, Secondly, healthy; our we're strategy. our end markets confident and in

turn So I'd to colleagues by the like on back to thanking Mirion close again me team my sincerely let you over and Alex. it

Alex Gaddy

you, remarks concludes today. prepared That Thank our Tom. for

operator over to will it for to We back started. Q&A. the up now things With turn that, I’ll get things open

Operator

much. questions. poll very we [Operator for while moment you One please Thank Instructions].

Please We the Ritchie Joe of with a question from Goldman go have line ahead. Sachs.

Joe Ritchie

you and Tom, morning details appreciate Great today Alex. this Good all Hi! I join Brian morning. to guys and Larry, the

Tom Logan

Thank you, Joe.

Brian Schopfer

you, Joe. Thank

Joe Ritchie

Scardino So and well have some going, to Ronny before tag going team team we questions get my are on I I think as here. I

like off kind But question to term it organic with just the the of yet we’ll X% quite embedded coincide can supply maybe then it forth. that two seen in to there. to it quarters So back the backdrop really probably chain start that that long you first your that to just have given quarters, kick turn company. seen. and I Ronny; I'll most you're relates ever a recognize worst also and and couple into and is let's really have as have in over go of maybe question We achieving growth happens public we first the what's But guide, confidence XXXX us though in target, the haven't X% look,

Tom Logan

include Joe, to tell conditions and you de-stacking. that that today in if public we at both pipe essentially we've segments. also we across throughout the that going raise remain know is, gross addressed X% the reporting rationale the is Yes again would you you guided the which official behind Tom. market X% of that confident process, – very I the this would that the look The the

the cannot the industrial segment which industry. the commercial is in now right dynamics So understate nuclear by the power. in firstly, dominated quality of Again, underlying I nuclear

decommissioning alternative significant prepared significantly industry, that, global increase key continued than new we each and that the define tremendous we activity, would been supported comments, XX new energy as gas natural installed years economy, power the focus build the on the regional of enrolled strength pricing look and I've supply in the nuclear base more change year-over-year and we dynamics, for build needs the security noted elements overall. which as tremendous in areas many I now by decarbonizing the As activity energy respects driven across in see most in is in by activity the those of beyond dynamics,

attractive industry of that the in we're so makes nuclear combination seeing that very to order our And backlog. in we're our the is these factors intake, noted and us seeing

there, sectors the applications. sustained in see to expect look military across industrial look other space, would which as the the we other we we or not we’re seeing the cited include strength. the lab As industrial, and space, but defense strength reasons only for life-sciences ahead Again, current year, of

Finally, are the what medical segment, on the guided dynamics previously. with again consistent we've

the radiotherapy side yield only the by On a Nuclear the globally talked quarter over current very and period, disappointment you six pipeline some We strong. growth chain exciting over ahead. by of the very, but we new of constraints and as to that be I a also believe we space will seeing focused bit driven on regarding to demand, express not and space product is about Medicine are demand we've been very little the level strong which continue, this driven look where clear month reporting and the results supply know radiotherapy the clinics, is

we’re Our very some at of to in that product shipping backlog very as merely record working noted specific, narrow, clear and We subcomponent availability, levels. some upon have terms been constrained very away. hard I is based

Instadose we're ability of term bullish market the global technological leverage again platform remains digital about in and and for that Dosimetry noted, longer occupational finally very Our the very platform that we've call this outlook the developed across then market. as our positive space,

at and company, support factors even noting enhanced guided of things some very pricing you view those beyond coverage, new categories. factors So to we the market that share as to close underlying and factors strong player growth and position doing we above are of of of tend in a our and contribute the growth will areas, throughout. those range scale our bit strong are that improve those product sophistication to the number we we In cases one narrow product all on a gain very those market that, is that focus look as other to and all and juristics pipeline, be and in when a of our we're working gaps to a we've our combination overall, uneven that majority hard

Brian Schopfer

the mention our two into grows little will be thing Sun talked Joe, this I so just about toughest numbers, year. first Brian, think – think digits comp well. hardest is, And you it's is, single through the the as be comp, that that off a and we the through, of that's high organic we that quarter growth processed emphasize would before, went provided I right, our this things. just in that very laid put obviously this we The it materials second all know we've as morning minor I double definitely is as comp mix we to so the is our as would about going and digit other go too. quarter One out of Sun we've I in

Joe Ritchie

level Yes, then the quarterly to details on gave guys segment great answer I basis all appreciate you Tom, no it presentation. in great. a the the and that see Brian that that's yeah, was

know an that on. get follow about on a made a You you area because of we up I questions your prepared lot want Tom, that to in it's comments nuclear, comment

just in than expectations like, space digit – in the nuclear and time XXXX. never with seen growth you better you I'm your if provide for XXXX at guess single I'm today point could builds installed that the industry, color I comment different than history maybe your it's of said and in a with business. or the business, square decommissioning whether the the your just of You those on new beyond guide to growth low look kind parts the you've trying seeing curious you're

Tom Logan

Sure.

way would So Joe, it overall. address I the

our to into revenue. about referenced revenue note The that of base subdivide Firstly, nuclear at nuclear I of power about element previously. is and total pieces our XX% related can our you XX% power typically related it we represents three total that quarters if look that to installed three just the business, further component

nascent. XX% developing new typically or the decommissioning base. is the installed range, activity The with the represents begins construction remainder, to XX% really which overall is it activity, so in market build New

present of of the at fleet of If American as but great you if couple seen decades to shut you example, that you was at an installed of way have regionally as most which lot the base base, overall; keep subsidies of seeing stations, combined there within the installed the have some to as of there are about federal decade, factors today XX% U.S. keep all XX nuclear the significant of $X use you’ve state situations. into the let's conditions firstly recession if down obviously the in market level, at dynamics seen impact of facing situation you've potentially nuclear intended To markets. we've look power gas, really legislation subsidized the are you and power, different the other recent economically look from the is you’re open, seen you forward at shifted. at plants, of there use to the stress operational operators the a cycle as about that well today, power look solar the have fast capital where both parts patterns about in them over we profitable, a a about where over its to past and power some created unusual challenges and proxy American And them operators infrastructure of peak which those are look offered where increased seen been the if a operating in government as created where turbine have seen for at the plants, level, Is demand a of States, to spending those nuclear which of there's all of last keep this of proxy, situation conditions heavily the billion for power what is overall. United of wind world, dynamics subsidies as base to wherein a this for significant proliferation challenged nuclear them you plants, and emerge that deregulated their nuclear power and power the half sold

year-over-year if noted gas key you relative macro I again has power addition, basis kind plants as more that than the folks driver and the a natural operators know of all overall really remain gas of power on seen pricing will the of turbine those base is this of and happened. In gas, versus the previously, power is there have plants market an look general as of net number The things of that for in it of you consequence, and high economics combined the effect viability confidence that period have as nuclear time. doubled the of installed the is the of conditions, extended price outlook more in at nuclear a a economic cycle

they which capacity of art the the for higher capacity industry factors, utilization. within is run at tend to Firstly, term

and further of spring power spent extension are the again the in more are installed many seasons Secondly, in see cases they most occur fall spending Again, but you know all again using will will more levels it's we the of time that they tends and is and of drive as in that market capital of all the is the the life horizon spending have a base. United about operators talking overall, upgrade higher plants, people complex plants peak the within this that and outage the viability an effect capital changed, which again the the States to on net have existing to in example operate conditions confidence the economic maintenance answer, capital and of when how of of as much overall.

activity activity now in overall right build the backlog. occurring activity I'm is Looking importantly if and this and one don't predicated briefly segments but at which Pacific NIM segment outside to overall, have to look of the our supported is considerable, you new many expect the by see in [ph] in United to Rim be U.S., happening significant views on activity, growth, the business at of which fastest we the new its States. were We sure and that's and seen throughout is the our this expect on of Europe growing build this

and internal the you by find growth you three the over in-hand is by views is bidding of better. if well add backlog activity, bullish, to is our backlog again if the quarters have at So quotation look to supported that, approach we're XX% where vast that vast figure, I we majority, of quite RFPs to mean you and RFQ’s, on which what or responding activity, had activity new that that are and build the that majority would today coverage

this which that of happening. this to that something we something all to happen; that is is Now, is expect not is say

very predictable know time XX’s the that a beginning XXX build that You decommissioning, know built them that. operating fact developing and is that I forecast essentially is new would the thing will the many that is occur you bullish really look covers XX’s in that spans very nuclear roughly which we're over our market, decommissioning and at again you final this when a say and see planning activity were a there profile of The by reactors and globally, driven of on horizon. again internal is to

is the beyond rate decommissioning we which participate into an overall, that because the for of net we’re getting activity. decommissioning leading know in activity You positive edge, accelerating broadly company,

on point good. overall is point. go you I could again think that but know the a the quite you for on are demand I this, So, get dynamics while the

think we working see very there numbers are be productivity, help to the factors. and richer to evolve augment look help an offer very base those the to there'll solutions out almost we of sensors, today and hard we that as ahead what we exploit analog the confident in to to and to continue is clear we're be into that opportunities entirely industry, We digitize

Joe Ritchie

sense. makes it Well,

I think Ronny’s got follow-up a quick question, Brian. for a

Ronny Scardino

Yeah, Ronny chime next. Scardino thanks in guys. I'll and I’ll just here –

So being comp. XQ Brian, about toughest you talk the

weather the term the seasonality. one deviate XQ really to growth to in be should any of in lumpiness So business, much to whether quarter trying framework, just of want understand you growth from that really growth try expect growth Basically negative? specifically how I’m any we long would think should there's understand and just

Brian Schopfer

double like quarter's Yeah, I right, toughest our first the I think so digits. comp, said,

is you we anything than I a think else. be it'll flattish where more sit know we think today quarter

As year, decent in at all of expect quarters. rest know the quarter, look of balance three the you growth the you the I

easier QX, disclosed as after have that the I QX much comp quarter. it's think you now and we've know We a fairly balanced first

bit think other our I of The changed are you you see fiscal the – our and calendar June a September movement quarter. seeing from year we know into to in year, would a we’ve know revenue do quarter mention as about a thing is, just historical little from probably will think I you

I think the this is a balance positive etc. workload planned thing frankly all balance, it'll company our for of and

a standpoint. When a to of bit revenue see general what in the seasonality, kind shift see the in XX% to we there. from second, of expecting kind XX% thumb, – rule little am first percentage XX% I in quarter, generally is So of what you expect the XX% mean I you talk fourth the in of third,

Ronny Scardino

you No, I maybe it conservative term of it. maybe the if an has think seems switching that type guide incremental [inaudible], doubled know you the know in guess which you Got helpful. long quickly, I incrementals know on to goal, that just light in exclude mid-XX’s takes incremental which think you basis. I is

guess still you target incremental term is margin do you feel long what know specifically in XXXX? how I about down just one know and laying that So is question then you

Brian Schopfer

mean just mainly public company talk our mean, a stepping back, costs. so ‘XX it's I just about I digesting for let's second.

into You process that controllable. have of a be nice is is thought and baked It's expensive cycle as some we public, we than bit know it’s to stuff be not think etc. planning stuff. it more not and would little this insurance, to we've gone what found our I through It's

So from costs as a you think ’XX, the bit little with right. about public company of mix, it's mainly ‘XX incrementals a issue to

little new bit less mix, So there's of little a recurring. a more little a build,

planned, we think little but it. with Something was we're okay probably had I had It’s originally a always we heavier knew coming. than

digest on. As our we Larry focused cost think is something and year us term are I think to go-forward, extremely to is you I for get know expect XX% Tom, this and I the the longer guide about margins biggest to

Ronny Scardino

more the remind is into a I us, costs helpful. one there discussion was know segment. that And allocating Yeah, point just corporate of at

expect additional next or You we know did with could is and given quarters. something that that occur this the data – in you’ve few that

Brian Schopfer

Yeah, back point I year more with half some some on at out see think first you'll us come the in that.

You know industrial of we dollars didn't quarter. did a million segment in fourth planning; it in happen couple have move corporate from the our the to

in I as see it back to that bit a cool in too broader was clean in can. and as there half. the any we'll year ‘XX – but want reallocation of around that then little keep the the come on will first numbers, noise we So

Ronny Scardino

I’ll Thanks it to back Brian. Yeah, JoeX. turn

Joe Ritchie

if guys’ I didn't be M&A. questions you we we'd remiss Yeah, ask mean about

the like question the more for top margin really balance it’s of near clearly to term is both investors, focus guess and is know is deleveraging in drive mind focus or still the expansion line so on of I first and sheet today? M&A growth my also top You maybe a

Tom Logan

add throughout important. done very This all purchase well and attractive the integrated, I the look pre-synergy contributor it very, those that on they is of coherent, of not last that essentially I our overall the That strategically ultimately deals years, record, five you at been terms over you if know we’ve It's What of business; important areas. multiples our is track longer the are only both growth M&A in sourcing securing side, we confident. of contribution that say the look but to a attractive at Tom. are in that about into the ‘XX X% be flow us will inorganic that to you continues are CIRS, continue look be note, take if CY case, growth to growth the to that very That I topline. to sustainable. of think we as range, deal expectation again of few will firstly to things XX% will we out at a put There that And history. additional to additional term remain add at and there, the that ability our X% that think the would firstly beyond

to leverage to is clearly term, will view and delever our certainly the Now that our the horizon, on seek company. planning the issue, deliberately longer expectation over over very we intermediate our

we'd leverage we Today is bring cited as bring company’s move maintain, X.Xx that leverage historically that we’re to as ahead. EBITDA overall, we like about to we just Xx target that the and overall. have into down understand over a we’re will we desire down of and that's which that Our X.Xx so the and – there's multiple expectation an investor range as

business, like free we at within immediately you flow the overall by view. our cash of assumptions attainable at the can we've growth our remain nominal generation that of would regarding I look EBITDA comfortable now that things so tell synergies, that, flow great. is our look again about range $XXX here free certainly a right I’ll cash set with you near when deleveraging that entry that inorganic if sustaining generation the and However, million, you the reasonable margins, the we in is we comments conclude noting term, guided, pipeline add multiples, are

objectives in feel consistent the pipeline active that's very be with sit the strategic a of we on continue about now. business and We right we very front cultivating where to good the

Joe Ritchie

deals the contemplating a Tom, connection or clarify you'll to also you via equity flow, funding the that to using with made and just point are still do And cash just cash deliver so be assumption to is cash you helpful. super That’s can deals.

Tom Logan

to plans tell a have any combination with proportionally of way, is pathway deleveraging within ultimately for through as a what view is well as there would of to the you incremental don't You deals, the that know, we equity business nominal defined we've overall. fund but immediate our envelope lower there operate a us so be cash is that to leverage that again I’d use that

Joe Ritchie

quick I the want of as your a just I investors be questions couple a appreciate few just the then time cognizant And well, so call to from okay. today, all we've clarification. other questions that but as on it, of gotten Got well.

you I to is one, points that is X think the clarity points inflation, a back ahead excluding around points of inflation. of inflation, guess I comment half first made X outstripping X The that point year. that, the is, earlier just price

understand you're how Just framework about trying the to for thinking XXXX.

Brian Schopfer

cost – not that. inflation only price think than from sequencing way Net that's price. about in back that number. bit would is So of is is, assumption – less obviously would negative not not margin, gain then on that in the quarter, a neutral first second the points the of there and is I not will be I prices a big in X half it's The tell year. standpoint quarter you a huge costs also up-lift some, the we I'm is our And but a

Joe Ritchie

sense. that yep, makes Okay,

actually how unfolding as that's whether Ukraine A and any about us think your it Russia, asked business. and how could that's around general well. there know couple thoughts I the we that heard of investors you impact situation

Brian Schopfer

some and just I'll on side then can add Maybe tune up color. Tom the financial you

we Russia. about direct exposure of – way Russia. about Ukraine, it's business to the So into if XX mainly It's our million Russia we think and

being We kind P&L of see are right, impact built not at little technology and Russian now is we the cash may some time. but we or expecting move in a have partnering on bit to – of expectation some Huntington, backed reactors we're obviously right Russian this a our with Finland etc.

to we're continue kind thinking how we about that's think and obviously internally an of what's evolving situation. I it So, watch

Joe Ritchie

And last with it because Got well we question, out filings then great. your it today. just saw a come as

just around of eliminate. the departure, position Just guys color helpful. would to COO any be that. around a this that you thoughts it, give that always Was intended your Any

Tom Logan

been There we to units processes This unit the two great segment Yeah, where operations report company our most where could the and expectation reported my beyond manage was see before we of model, has public long case the operating ultimately again directly other bandwidth on even key I business was the creating to we focus me the the ultimately the as or planned other the heads of directly while would have got more to and to through that limited we COO exit. history, exit as utility exit would strategic matters. me. prepared spec and directly leaders on position evolution an our exit, operating the on

model license there's us revert and to it touch to direct us, me again the and unit behind leaders. more Now between the give that that's interaction where historical

we as a that model, operating at And the been the of so quite it's that about we've for thinking looked evolution while. something

was the the structural and that in the the X-K, model window SEC decision strategic X-K operating really noted. I was more changes In ago. few actual apart days for filing from made a terms of the It the certainly separating to departure in

Joe Ritchie

appreciate sense. Larry, today. makes the That Tom, Alex, all really thanks. I and Brian time

Tom Logan

Thank Thank you, you, Joe. Ronny.

Operator

and Thomas question-and-answer Thank have closing Logan you. sir. we like I'd remarks. of session gentlemen, the reached end Over for the call Ladies the and you to to turn back to

Tom Logan

you we’ll for see the your market But updating I’d in attention gentlemen, first in and the we public strategy earnings that to ahead the we forward look listen in and had with today. you and about again, on delighted our business call feel and you close participate we're future. to as us Again, is so we and forward are by good time that a quarter. opportunity Ladies and about to that conditions next this of and our good thank overall where you the we saying connecting meantime progress the look and

Operator

today's this you. conference. gentleman, and Ladies Thank concludes

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

Mirion (MIR) 23 Feb 222021 Q4 Earnings call transcript