MPTI - Earnings call 3 2023 | M-tron Industries, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the MtronPTI Third Quarter Earnings Call. [Operator Instructions]On today's call, we will have Mike Ferrantino, CEO; and James Tivy, CFO. I would now like to turn the call over to James. Please go ahead.

James W. Tivy

Thank you. thanks our and call. XXXX everyone, morning, for QX joining earnings Good www.mtronpti.com, call. note be available the at will this on after and website Please call making recorded, that we anticipate our shortly the recording statements for most We issued week, you notes we're XX-K, fiscal be last and following our and underway, in recent all of getting with to note taken our that filed discussion within the XXXX.Before the contained Thursday, quarter required our third has reporting which XX-Q financial with results the advise participants SEC. conjunction the thereto should should XXXX been of discussion of statements the This Section within XXA of Act of Act XXXX and Section Securities forward-looking XXXX. contain Securities the XXE the may of meaning Exchange and involve and detailed risks statements forward-looking uncertainties, the unknown and our in known are SEC. with filings which These

or not forward-looking undertakes Readers any the that, no update not or events statements. as a expressed CEO. there market are by forward-looking statements the The Mike cautioned based that upon be revise future are the or publicly I'll company's guarantees are call result of of turn company can obligation future forward-looking our results information, now future forward-looking believes no the Although statements assumptions statements, and any conditions, company's that new results its materially that to from Ferrantino, actual company business its implied any to whether otherwise. regarding performance.With reasonable over differ assurances will

Michael J. Ferrantino

call. of third the our public James. for as XXXX our first and company. marks our shareholders your completion completion Good interest you the earnings MtronPTI you, year morning, attending to also of a Thank in QX quarter thank and The

marketplace MtronPTI RF As has since been the providing a brief XXXX. to solutions reminder,

product U.S. new With year. have product introductions robust and We manufacturing a global investment in and research we with X consistent a averaging India. development, over pipeline in company the locations are a XXX

over with today. XXX growing active customers is base customer Our

year. on shipments. Design core continues and the product product where prior the benefiting the increased to costs and the of the million which increased compared Gross the direct to company of increased X sticky, XXXX. Aerospace, operating and prior for the The me increase September September reflects including million focus for and months to tailwinds. and a of to compared tend XX, Engineering, XX.X% of our to to during XXXX. over Space, the in Backlog on XXXX, presented as XX.X% ended of in volumes.Backlog cycles XXXX. program and reported $X.X XX.X% increased costs being for $X.X company public compared at higher the Diluted of end incremental increases, ended September $XX.X period. Compared XX, the administrative the September of a XX markets represent for and share and million, for months X $X.XX periods to for no $XX.X the long.Let very Net for being was earlier.For months million was Defense are $X.X basis.Our X $XXX,XXX, year wins and the described stand-alone markets Selling year the income increase amount year the quarter compared XX Development margins XX the Avionics We ended The for X the million for reflect revenue prior months operating increased a within beginning for with continue investment you margins X Administrative million higher ended due X was along Defense over by the months compared product orders. company income million prior increase favorable in $X.XX mix, for $X.X significant result which costs as from X million prior the to XX with prior to at to Research year; now were third strong when an summarize year, $XX.X prior at XX as to months year, primarily the MtronPTI $X.X months XX.X% product September each for the cost per the net these the the public months for year were numbers September demonstrate for of product third September million. revenue primarily results compared prior life of $XXX,XXX quarter year, for to Defense $XX.X both recorded and income comparable to X $X XX.X% $XX.X favorable ended increased ended income X quarter million revenue of year The mix prior stands XX.X% year-to-date revenue impacted to million months period. be of the

that from for Our $X.X ended of the ended a XX, XXXX, would September results. include have plans, year versus was million months the any continued the for the September $X.X the adjusted organic contributing and our team worked conclude, X period. was EBITDA we EBITDA company.Finally, we traded to backlog to I prior for are calculated XX a additional members diligently thank robust positioned adjusted not growth. Note for a who on X With million as XXX-plus costs for pipeline, execute to months of the believe strong and our potential publicly adjustments a well of all greatly being stand-alone impact does basis like we these

organization hard the yields investments improve key operation, talent drive equipment efficiencies and times. We to leveraging making throughout in are reduce by our and cycle working to India

on Operator, capabilities synergistic hard the to please legacy acquisitions technical that companies questions. to working increased also call are and focus will to We access for to markets.I questions. our open cargoes now the open of floor provide growing with products, and a new extend any

Operator

Soderstrom from Co. Anja of comes & Your the with line first Sidoti [Operator Instructions] question

Anja Soderstrom

wanted seeing end But, you the in I product about third example? sense, you for to other serve, a So just you're are the quarter Defense Avionics what the helping strong get talking shipments industry, results. markets

Michael J. Ferrantino

So CAGR X.X%. in We because the base those are so our but the give and market about we're well, our the been frame last background, of to been market in and time strength end has Aerospace XX%. as that's growing change at a Space that business years over the markets markets Defense, largest Avionics Defense in is biggest growing other same today. our some seeing at you -- X see X%, has

Anja Soderstrom

forward? favorable you volumes. product due of gross should the and to And of you increased And how improvement, we product Okay. mix said in that's margin terms margin Can sort about that? gross think going bucket

Michael J. Ferrantino

sure. Sure,

that So about XX% product related is mix. XX% and of volume

In forward, as going forward implementing well. moving terms we significant are improvements of margins efficiencies, impact in should which

will So, play factor. a although continue mix product to

will has it less than I little quarters think a earlier been be bit in year. it this

Anja Soderstrom

But up made volumes that Okay. increased then for be might or? product

Michael J. Ferrantino

Correct.

recall, quarter, quarter, product revenue shipments we in an that second end-of-life that behind second lower in that's the If did at the us. has impacts margin so have you a some high

And that mix we what through than today, we're the past. seen within variability the efficiencies. improvements in we've So additional see there's some do less expect to offering

Anja Soderstrom

area? lot. what are if are you cash that so, position all you Okay. And at a what you M&A? improved And seeing in seeing looking quite at -- your Are actively

Michael J. Ferrantino

space. looking in I Yes. discuss We're don't have this actively at just point. to that anything

Operator

] Your line [ next Investment. Kumar of the question comes from Akhilesh with ITI

Unknown Analyst

I question. have a

decrease in expect do been is coupling is franchise, top First a EBITDA months customers, while concentration so And X generated regarding from our in like you mean, or that would to concentration about, I concentration. perceive years. towards X XX% be the this customer? has the customer question sir? top how X single one the increasing, how see like customers I is you I it stable would talk that largest our like over say concentration that or

Michael J. Ferrantino

Sure.

definitely have driven our some we in but mergers within customer by largely So increase base. that's been customer concentration, seen

of of United they bases. within large, those with we companies locations are when that we within multiple very Raytheon with customers, had merged those combine are Technologies, doing example, an with And business positions one As generally any them. both and those customer

the diversity it within customer. may same with of is customer, there So that a quite end bit be while

Unknown Analyst

I the next like it. Got an concentration you see? aspirational would within we that years? be which say, can customer What mean, would it. X Got X top for target

Michael J. Ferrantino

nobody think our if time, we over customer [ of food XX% we'd I to XX%. than the smaller our to greater love grow as base up take customers have you will, some and chain, ]

Unknown Analyst

Okay, okay. Nice Yes. sir.

products and you say, products into is The be were to? versus the versus I what would new those second say, any like to like as bids, what share between you that percent to catered is, question will there classify your would so base, aftermarket for if aftermarket if to new your attribute going -- be

Michael J. Ferrantino

as aftermarket a but into majority The going of plane, upgrades system, into vast newbuilds would is it example. there opposed on going new what that to a doing we're be business. radar maybe would an for business, new plane, system be aftermarket it a Where is

Unknown Analyst

itself, say, you of would So sort it's say? or you a maintenance would demand replenishing demand, evergreen

Michael J. Ferrantino

business. amount business. of used our and missile a a would done. of piece programs, we have in not are what where of describe portion fair program, not terms as for consumables huge once is a product our do example, We big in then that That But of have this it's I

Unknown Analyst

how I be know call percentage as? much would would Might you that consumables

Michael J. Ferrantino

less get I better XX%. a number I Probably on can can that. -- see than But that we

Unknown Analyst

Okay.

question our Okay. Fine, Defense sir. orders. And the with to increase regard is last in

that's any it as? part mean, you play sustainable with sustainable? Defense, anything have you Or has would say scenario Russia-Ukraine this to if the that role all is does at it -- And So at whatever or share it the call or Israel-Hamas? all the is respect to market playing this is and with macro to do in I increase or

Michael J. Ferrantino

right based So overall in growing gaining which that is on now, on space. share clearly what's growing the market, in environment going believe addition market within with are global we to we the

horizon, visible, when and within over I believe -- out certainly look So I sustainable. it's what's the

think, to a of I bit, even if continued other U.S., purchasing fair -- nations begin As their friendly but not the a things as down amount be supplies. there'll only rebuild calm

Operator

Thank you.

Soderstrom question line the & Anja Co. Sidoti of next Your with from comes

Anja Soderstrom

that in follow-up had could that the a create question that Have geopolitical the sort in your on Or too backlog coming you is war. tailwind just on quarters? noticed last most and environment of soon and already? recently, some the made it Hamas-Israel I Sorry,

Michael J. Ferrantino

side, have noticed Ukraine we but it certainly, side, not the So the Israel-Hamas from from no.

Anja Soderstrom

Okay. That was all.

Operator

Ladies time. will and go there now back to at I turn ahead. no remarks. are closing Michael Ferrantino further gentlemen, the over Please you. for call this questions Thank

Michael J. Ferrantino

season. holiday like interest have and great joining, a and Well, for thank everybody day thank your you. And please for once MtronPTI, again, to and great I would in a

Operator

that all and you today's you now may Ladies concludes call. joining, gentlemen, disconnect. Thank and for

M-tron Industries (MPTI) 16 Nov 232023 Q3 Earnings call transcript