AUVI - Earnings call transcript Q3 2021

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Operator

Good day. My name is Holly, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Q3 2021 Applied UV Financial Results Conference Call. At this time, all participants are in a listen-only mode. A brief session -- question-and-answer session will follow the formal presentation.

conference recorded. this reminder, a is being As It Mr. my pleasure your host, to introduce is now Investor for McGrath, Kevin Relations Applied UV. Thank you.

You may begin.

Kevin McGrath

and earnings like Relations section Thank third release is our Holly, good our the Welcome press everyone. you, Investor in to earnings quarter call XXXX remind website conference to I'd of available call. you that morning, our at www.applieduv.com.

press take a forward-looking our earnings the moment statements read please release. to begin, we Before in

about future During assumptions reflect views today's events call, our based to We predictive make and subject and risks future certain and that statements performance these we'll certain on that and results. are uncertainties. financial current statements expectations

from Form most and that actual factors our most lists some differ cause XX-K predictions. important recent risk of the could Our to XX-Q results

call Saeed, the Speaking Mike With today Officer; and Applied Keyo CFO turn that, I'll will Keyo. Executive be Riccio, to Chief of UV. over on call our

Keyo Saeed

Once to good you, highlights pleasure morning this performance. quarter everyone. Kevin, to and you again, Thank review our it's third with my morning, of the be

globally, and net million many delays Third $X.X approximately experienced which million Like to $X.X by in in fulfilling many XXX% in logistics in orders resulted third over approximately XXXX. so companies increased second customer quarter continuing quarter. quarter the from the transportation past in the challenges sales -- in we regions, quarter in

approximately improvement disinfection $X increase the increase year to to in loss reported of the in XXXX to segment many more net loss anticipated XX% in XXXX. results of in million approximately we with the Net was of be in call to Reviewing shared SG&A than QX and QX business. the last of and gross quarter third XXXX The results, against a quarter improve the customers profit. cost for last the while in shipped in quarter. XXXX our XXXX compared of loss orders we to expenses primarily in you revenue in others our we operation was $XXX,XXX As fourth third third ship those our quarter net due future expected an

XXXX net the Our for more quarter than improved third XX%. loss of

per XXXX. QX, Our We're year dividends improved and share million profitable to the and $XX.X note we year-over-year this sheet. sales $X.XX, in net with growth. year, optimistic compares achieving $XXX,XXX; $X.XX negative available is a strong in to seen result expected approximately The preferred in inclusive of this continue per this to into of ended loss QX. momentum QX on loss towards net our negative of cash our closing share of we've to We a sales high quarter with on as balance volume heading what momentum growth momentum about better good showing drive

we mute some of purification improvement due issue enhance importantly, processing perishable air large to plan the markets, [ph]. ethylene processing, purpose-built strategic is airside retail most major continued solutions and We and logistics Airocide in of QX, sector. for can to to in expect issues, beer and Science our technologies range technology of two often of customer product of part QX, Holly, our wide benefit food industries. & to growing These KES commercial brand the facilities our some the other and ways the our portfolio healthcare air industries including gave as September expand major which and we the face and continue very On a please? early from beverage all are and significant the consolidate of effective a finding wine, to you opportunity spoilage and in The end Technology; systems food challenge other and food other we grow At gas facilities. public the distribution, lines, a wineries, presence and for demand significantly a storage, under post-harvest acquisition in of announced transportation acquisition the XX, and our KES KES closed SteriLumen acquisitions purification the base. across us reduce

Operator

are it's from muted. lines [ph] Hugh's All line. I'm it showing coming

Keyo Saeed

reducing also destroys. diseases problems and mold of address microbes and Bacteria other respiratory issues, cause KES product is while pulmonary for to Airocide these well and which portfolio The infections suited threat also employees. the

million approximately $X earnings As our previously annualized accretive expected is be KES share. we've $X in and revenues million stated, contribute to per to to immediately

We're closing Following as key Air the disinfection, Scientific safe KES, a airborne infections product the for is healthcare acquisition the that effective with number seeing this need Scientific growing Management. for we developed growing one for byproducts. of and recognized it exclusively disinfection which the closed transformative believe quarter, announced September XX effective healthcare. particularly address first, us health We to the a in acquisition demand HAIs. verticals, need safe was of harmful facilities leader challenges largest and caused being the of hospital-acquired for October by Air airborne driver of the or on establishes of no reasons; XX, on persistent this

products tested products Second, Scientific deliver independently what in harmful items flagship delivering unit, the it for no capabilities; our while with by the finally, this [ph]. mobile is look ASXXX, disinfection safely disinfection solution acquisition best clean And is Then product, top simple can target are room mobile unit to run wall room control XX/X anchor plugging just like occupied humans air works a or all we Air's is Airocide of and byproducts. the whole outlet. into with move while

better excellent years, complement medical personnel the experiences and ASXXX data expand some healthcare country the us delivering fan developed has patient in Clean most potential five outcomes to presence among in across and give and our in the performance by base experts. the for to explain Solution institutions more prestigious of the market our and extending an than Third, Air why It's frontline has communities. enviable our Scientific portfolio the helps product been customer Airocide Air will

supplies Finally, with North hospitals in nation. the the strong throughout healthcare a Air provides acquisition this well-established of and large facilities Scientific relationship of channel distributors America; with the of one distribution healthcare the comes to relationship a largest

We expand penetration further successful and per to expected is has contribute revenues, $X that to financial further into immediately healthcare $X approximately share. we've be to leverage to our in Scientific From accretive verticals. a earnings million the said, Air expect linked relationship been will as annualized previously perspective, to million

revenue we current revenue in million expect annualized such, considering the As $XX to rate. these when million acquisitions, from $XX our combined approximately two contribute to them run

the contributing on broad synergies, KES and both, much elegant to portfolio providing and functional each forward, serve customer and Air, progress integration customers. positions us the these in for process, Although domain more more acquisitions excellent with journey SteriLumen, making of and This subsidiary, a create Scientific growth early better we're our to aligning Collectively, a set. cost importantly, solution a more going SteriLumen complete and companies expand technology are our believe complementary portfolio as disinfecting open to of patented large air solutions virtually technologies new facilities, or technologies public market, purification commercial assisted other spaces. technologies would of and always, major markets us. brand, the post-harvest living and that -- including capable disinfection other complementary enrich schools, there under hospitals every facilities, and processing, of addressing food We our

potential scalable ready to existing you all fourth Applied forward a of remarks expected targeted XXXX this are provides areas. and there be confidence our the to will on our get with M&A approach about to to any continuing our in through We out another UV. evaluate Holly, update growth at how strong We we're concludes questions my continue [ph]. morning. accelerate this going year performance look progress. and build And the for that to this capabilities carefully and All growth us to quarter strategy

Operator

today [Operator from Ladenburg. for Instructions] Cohen Jeffrey, live. your Jeffrey is is Your with first question line coming

Jeffrey Cohen

you? Hi, Keyo. How are

Keyo Saeed

morning, Good to from hear Good Jeff. you.

Jeffrey Cohen

any the of for most of topline. the of Can revenues caught far call. And as indication quarter? us only strong third I on sorry. revenues composition you quarter as for the congratulations give So,

Keyo Saeed

do you to Thank want answer you. that? Mike,

Mike Riccio

Yes.

maybe XX-XX; SteriLumen XX than little third business. For or XX-XX, business our other segment our hospitality being disinfection the quarter, bit higher XX and traditional a -- roughly

Jeffrey Cohen

[Indiscernible]. got it. Okay,

Keyo Saeed

I'm is reporting queue, started sorry, bit. that Jeff; We we just -- SteriLumen tiny segment expand substantially. on a to growing since in the

a it's with and better, that's hospitality engine. And growth disinfection our broken little bit segment systems be passing the [ph]; out so,

Jeffrey Cohen

And specifically on Okay. updates information regarding any units was as or Airocide any there update hospital markets as on there was or the units? far And to being placements? commercial consumer the SKUs

Keyo Saeed

into still mean, your XXX% the the consumer commercial; we're You than question? answering If the that answer waiting your just of that's portion question? business. It's breakout? Does so more almost

Jeffrey Cohen

balance Yes, anything order about that's you year? quarter? backlog say say fourth Did helpful. follow through any or about the anything of the Did for you

Keyo Saeed

Yes.

the of we'll logistics out of of of we the backlog I to it -- second little we variants through us second in -- the we of did a getting -- both, -- were problems so we experience our crumbling that supply bit, quarter quarter out The obviously and slowed spiking shipping, So the goods the most infrastructure. kind of chain of and also guess the this fourth realized that down continue and that some into of realizing in and and some XXXX. Delta the in starts and beginning quarter see the quarter first start will we're it through, think going -- it in we fall third smoothing of saw -- quarter, some the

Jeffrey Cohen

Thank Okay, you. perfect.

Mike Riccio

this is Jeff. Mike. Sorry, add I thing; Can one just

too, see acquisition. but continued it So, today, and in of not a hospitality to SAM is you're you're going and going improvement also the impact in QX disinfection, only KES our see as our to

you'll So were in investments we're and like the start return just expecting, -- largest presentation. see you mentioned those had Keyo obviously quarter, to his our know, on that

Jeffrey Cohen

I got Mike. it,

So statement; correct? growth quarter you're over QX, your largest sequential by implying

Mike Riccio

Yes.

Jeffrey Cohen

Okay, perfect.

Thank me. So you are much. those very for

Keyo Saeed

Thank you, Jeff.

Operator

are queue. back I would to turn There floor over Instructions] now like [Operator to the questions no Keyo. in

Keyo Saeed

our wish team Thanksgiving. And Holly. helping my like especially you lift. especially the acquisitions getting was from Thank and everyone third Happy which a [ph] team, a for very thank you. Thank our much, a finance terrific to Q for with up I heavy and everybody quarter, I'd

Operator

Thank gentlemen. conference you, conclude call. ladies today's and This does

this your a participation. phone have and for time, You may wonderful Thanks disconnect your day. lines at

Applied UV (AUVIQ) 16 Nov 212021 Q3 Earnings call transcript