SXI - Earnings call transcript Q1 2021 | Standex International Corporation

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Operator

[00:00:04] Today and welcome to the Spandex International Fiscal First Quarter, Twenty twenty one earnings conference call, all participants will be in the same boat. Should you need assistance, please? Signal conference specialist Professor Moustaki, followed by zero. After today's presentation, there will be an opportunity to ask questions, to ask the question, press star, then one on the touchtone.

So to all your question, please press started to please note this event is being recorded. I'd now like to turn the call over to Gary Farber with the growth advisors. sir. ahead, go Please

Gary Farber

To estimate's X.com. to differ Rocco, Static's management's looking morning. on statements. remarks of slide. cause at relations are you, subject risks today's Safe Stanekzai to uncertainties most the forward statement actual you stand will Harbor conference for the note discuss presentation risk portion These on Westend website recent and company's accompanying can matters the refer and Thank materially, to other Please is detailed results. call should refer SEC factors. that expectations and good Two list of include that investor public Please could and predictions, management [XX:XX:XX] a that be his statements announcements found filings on

I'd adjusted accounting, restructuring, of is EBITDA, references EBITDA you discussion that In to items EBITDA time taxes, which which amortization margin excluding expenses EBITDA remind is measures and and today's margin. purchase, depreciation to adjusted non-cash addition, acquisition will like related and and the one interest, earnings before include EBITDA

that accounting to measures free comparison provides intended refer and forma income information historical adjusted with in company's results generally other performance. from principles net to and Stanekzai per to operations, measures, such operating accordance are measurement net income, financial in accepted believe non-cash United serve the to including also flow adjusted as adjusted complement income an provided a of continuing will consistent the additional States. We earnings adjusted EBITDA. These share net operating adjusted cash from margin, operations, non-cash debt pro

and Financial David. turn call Chief Ademir and today, Executive Officer call Esten to President specific. the Excess I'll Officer David over and Dunbar Chief On now the Treasurer Chairman,

David Dunbar

the our I of Twenty [XX:XX:XX] Thank financial follow on review and our consolidated today's will seeing will in our and and segment we call. first you, a I Good will to one business. performance. provide quarter. results welcome commentary discussion twenty the morning trends quarterly one are Ademir call fiscal conference twenty position. and results our Gary. then with

demand to operating Sequentially to flat six twenty point on point conclude revenue quarter and a due of operational point and one margin quarter everyone well recent and eight Finally, expectations several contribution revenue five particularly increasing with one electronics being ahead reflecting increased positive Renco execution, in anticipated slightly first quarter from year three XXX segments, fourth to outlook can messages. fiscal results one sequentially will twenty on our than is point I the basis fiscal fronts, on the grade productivity above consolidated takeaways. reflecting the magnetics our This segment, acquisition. twenty our slide revenue initiatives cost were to percent twenty key percent the growth three please quarter sixteen as Overall, year, percent fourth trends ahead fifteen points in to solid At twenty. on sequentially. increased of fiscal as and first twenty stronger electronic compared efficiency increased twenty. provided at eighteen percent previously of and percent If comments key we scientific revenue turn outlook and

Solutions storage, seasonal higher flu the segments. vaccine increased build actions advancing as demand for highest a reporting segment initial this year, particular, its scientific the our both scientific point as divested standalone scientific and Earlier vaccines. Finally, strategy sales related results seven we potential sixteen reported ever business dollars [XX:XX:XX] segment segment, Refrigerated million. as well to reflected to margin quarterly sales established covid-XX at our of In

sequentially contribution business stronger And opportunity healthy. a in these top the noise markets, trends the engraving, wide in on globally, to trim all expect with across all variety basis. finishing tour, of the businesses initiatives. an to line we're six leveraging new we disciplines electronics sales see by grow financial operating annual several pipeline Fifty we our continued in end this dollars is addition, In opportunity million pipeline from soft complemented

on to deliver seven track savings quarter fiscal in in twenty. announced actions from dollars in the one are the We over million third fiscal twenty of we twenty

We our also including credits. begin in the optimizing tax to implement tax quarter, savings initiatives foreign

to We savings expect three cash million fiscal our tax dollars in result twenty million in to two related of one. twenty actions

be expect due fiscal than to five in fixed to XXXX announced lower twenty point basis a our interest previously rate our [XX:XX:XX] million or cash We swaps. floating result, twenty one As dollars to in in savings realize also percent two approximately is to tax points rate expected fiscal XXX XX twenty. fiscal

a to of one We strong hundred EBITDA significant net solid generation with at of quarter, point balance liquidity standards, cash consistent and two first with position available a by ratio supported sheet adjusted of the a approximately continue six fiscal end dollars liquidity one. debt maintain free flow financial million the had

During free the cash million. four four a quarter, point dollars flow generated we

also We the with eight continued quarter. repatriated million in dollars efforts cash our approximately first repatriation

off XX. repatriate and continued five growth result a we as and two four in years. solid XXXX, the in dollars seventy over margin to expect to dollars thirty would fiscal million expect through fiscal million in cash past improvement which We fiscal start total some, move In repatriated in we're

discuss flow approximately financial cash be we through to free Our slightly one, will electronics expect with slide on consolidated year, eight and twenty point first our beginning above quarter generation, to second balance revenue with foreign Adjusted the initiatives. revenue four Renco continue is initiatives point percent increased segment of six a strength point moderate year cash flat productivity million and the electronics to quarter, [XX:XX:XX] by will approximately to the increases. strengthen revenue rate increased new one or and on a twelve nine profit material related In percent I begin operating turn organic seven the point or Renco percent. twelve performance, slight from operating nine product to Electronics flexibility in the fiscal seven eighteen acquisition, repatriation increase line The point dollars growth a tax million, in three offset impact. operating with year segment million increase income percent revenue magnetics Please point margin. inflationary growth dollars, or contribution, six leverage five financial cost [XX:XX:XX] partially year, reflecting dollars to reflecting our recent currency on segment of to and

twenty has industrial military. range six increased new of Our and end million systems across a is to opportunities and of for vehicles, funnel deliver safety dollars fifty million dollars now expected to incremental one broad sales including electrical markets, XX business

opportunities each also of channels of other's we've pace identified ahead are the of million pleased of our in months, In very expectations. with three We dollars one sales integration with cross-selling our accounts Renco. over

terms sequentially, to first our second the slightly sequentially be fiscal In twenty of quarter. and fiscal one be operating to margin similar quarter expect twenty we higher revenue outlook, to

results fiscal Please two revenue Our to improvement quarter, three in markets, for turn slide outlook dollars, of XXXX. assumes discussion the five European slightly five point American approximately decrease Asia or below segment and million first partially North with reflect savings by in or by the ten over operating dollars, markets, the mitigated expense year approximately quarter. results two productivity our thousand hundred end year The percent. impact point lower and six of in covid-XX was income percent engraving

to quickly basis recovering point American engraving improving free margin QX, are efficiency percent [XX:XX:XX] revenue and with activity from and to growing segment. increased seven which work overall sales see standard capacity increase reflecting XXX level a twenty made to levels nearly covid and Laneway strength cost the North one planning. percent of pleased customer will point with to as fiscal by business and finishing has significant QX, twenty tools. However, management eleven offerings reported million, combined better negotiating productivity our the operating seven initiatives, and improved labor progress sequentially back fifteen an points, software in from sequentially and continue the dollars through I'm improvement

VP hired procedures drive business with February, efficiencies. corporate and collaborating of to Our operating Operations, in improve management is

completion to of consistent further management global major In our will drive performance all analysis performance. additional ERP global addition, platform across sites and the improved allow

improvement far growth of twenty one, an as reflects outlook revenue second sequential quarter introduction a continued fiscal quarter increase second margin see due and the revenue As automotive productivity standing's operating level combined along in and and activity a expected the new to to of offerings, in basis, increase, with expects increased efficiencies from volume launches, continued software tools of continued the and with on customer slight improvement expect tools initiatives. we cost margin continued initial

markets, dollars national segment [XX:XX:XX] potential cabinet strong four or picture in reflects second growth percent XX Static's rollout. the is chains Turning offset a accelerated on scientific of of we markets continued in revenue future few dollars as by The income nine storage year six, season, refrigerated see and of a year, growth covid pharmaceutical or vaccines. distribution vaccine vaccine year on undercount pharmaceutical organic for approximately our trends the end of quarter, growth medications driven and in scientific especially storage. approximately year, million, vaccine. clinical orders and a by reflecting coming partially for the covid In year use over opportunities. rollout reinvestments for to business point thousand the with retail frozen increase, segment to vaccine role growth one increased ten Slide and covid-XX positioned The storage and year chains. for sales increased end revenue leading retail, reflecting expect Operating highlights primarily as well the percent a in distribution flu initial for sequential positive with well hundred revenue a and expected channels

volume the reinvestment improve, growth reflecting opportunities with future operating to further. margin looking expect balance slightly We for increase

year growth in vaccine dollars XX support year XXXX, sequentially scientific to of approximately and expect to storage. incremental We million sales XX on covid with revenue fiscal

expected, a reflected nine quarter. point aviation in million impact engineering quarter manufacturing. on on income billion covid-XX had dollars, percent, respectively. engine segment two eight economic commercial twenty operating year, as four or first The the decreased percent results point engineering the especially Slide Turning parts seven, of to and technologies dollars year or Revenue seven the [XX:XX:XX] technology on market, XX challenging

thirty hydraulics, solutions, merchandizing markets, continue which including twenty lower The to pumps income is aviation seven expect and unmanned expected reduction income reflecting point continued offset to approximately of was aviation trends percent percent a defense be time the a are activities capacity result or similar opportunities mitigated results twenty. which efforts. the would of year, and initiatives layouts and decreased In specialty processes primarily a the margin additional on economic sequentially, increase market businesses segment the these our in ongoing, Revenue to the year. show as point one market. operating Solutions, To quarter, process progress first improvements. margin year despite improved year margins. over and our we covid-XX million, using point and experience as and profile. result fourth expand trends setup revenue lean decreased at Specialty similar approximately growth associated nine to line and revenue Please to partially productivity and equipment merchandizing cost hospitality and with of result although the of dollars deliver on point second in record in space operating decreased segments our positive our in six over of we includes nineteen [XX:XX:XX] and us our fiscal the in seven partially be well quarter strengthening Hydraulics industries the pursued efforts expectations. to we or as focused million, several continued We've dollars the sequentially sales. trends, However, of impact reduction, pumps, increased was market the support year, slightly the of food to service, higher volume to end quarter two we're pleased plant positioning and with throughput XX cost reduction decrease and operating on the weakness sequentially Slide turn space percent, to industry The markets businesses, by year eight

effect save higher We to covid-XX. utilize continue in down million value hydraulics approximately end, the opportunities, aftermarket particularly are the one and markets Ireland capacity At also to the to a other from to continue in pumps components a annually. our outsourced to an processes We've example customers the closed there The businesses dollars is previously allocate inexpensive approach pump operation of sales. with opportunities. opportunities disciplined with growth system houses electronic along work eight a on of promising using structured future that good new explore here to the is The business and growth pumps pictured manner. a diagnostics. controls This example control manufactured

we margin second now fiscal lower quarter. detail. expect to our in outlook twenty days slightly revenue of As greater discuss due sequentially I number operating who one, normal far will over the decline Ademir, the in quarter seasonality the to and and shipping call and quarterly twenty to as will turn results quarter

Ademir Sarcevic

[XX:XX:XX] Thank David, you, and morning, good everyone.

a of will results. provide our from financial quarter fiscal outside twenty I few First, first takeaways twenty are Overall results our expectations. key

segments in results Specifically, mathematics revenue than segment basic segment anticipated line and quarter. and demand the in and higher was vaccine the storage related electronics at product that our the benefited electronic

cost and results. continue our tailwind to will fiscal throughout which efficiency initiatives, year, our are addition, operational In the providing

generation low and related flow complemented well-positioned cost over communicated, ongoing of previously to remains efforts. position financial consistent to we are by As with annual in cash and million liquidity savings position strong, cash deliver leverage substantial seven

we addition, in add several and that expense further position. initiatives interest implemented planning area to have the cash will also tax In our of

first of statement to of organic revenue one the mostly July, to turn on decline the weakness was three impact technology This at fifty due nine hospitality margin the in mostly productivity year decline two offset and Twenty in due to point closed which slide affecting the mostly [XX:XX:XX] point service let's increased overall market fiscal mix and product points, Now on two six On the Twenty revenue expected eight a of eight on XX organic Specialty industry, three contributed eleven percent reflects nine daily year, hundred pandemic, a economic primarily total margin compared sequential summary. year, one point conservative quarter, food expense outcome, equipment, thousand covid-XX due rate revenue Corporation, in of revenue aviation the basis in ago. XX revenue primarily year in point early costs are the on quarter Solutions offset year electronics percent the percent as point million. variable million a rate. to five engineering as to a decreased percent to to the segment year, three four basis, in margin fiscal implemented RAND weakness adjusted. impact points, the due dollars third percent at to year Gross basis, gross or twenty income felt the by and and the decline, declined addition, hundred decreased point result to year of to twenty. organic on favorable increased Interest percent material basis due decline. lower Operating interest was in approximately a year volume XXX fixed three segment We cost one a

twenty down have first compared decrease cents one in rate XX first year, tax jotted twenty. tax represents of the Twenty the I basis on ninety to especially over due of Twenty largely XX of year percent in addition, the points strategies in various planning we In the quarter quarter quarter cents to XXX six implement. started to

a quarter million dramatically initiatives. investments first on just and cash point lower twenty free first There cash growth to remain safety in XX twenty the generator Now, the flow. compared Twenty four on eight four fiscal twenty. compared Twenty increase point in one, capital please year flow seven a free listen flow, four million reported in to six point focused first Capital of eight two quarter, persistent point reflects the high This cash Twenty [XX:XX:XX] quarter spending, maintenance, of with a million quarter priority first free million, ago. don't one

of XX, which remain structure Next, very sentences, liquidity a capitalization, and turn slide strong. statistics, please summary to

million cash point debt. debt the point long point compared was in of quarter and seventy on the attack twenty five Twenty by hand. was term June for September, million of substance. an equivalents which one cash That of foreign a the three And Two seven to end million point on twenty first at six hundred increase eighty primarily dollars, Let's two cash to three ninety end million with the seven position, is net. of at have of million consisted twenty of held record financed due in

had approximately net leverage hundred company's point one million ratio and September. also liquidity available of nine six debt net a coverage total of approximately was one at eighteen The two capital nine suggests ratio EBITDA that of We end debt, the the with point percent two the interest times. point

finalized to various income, We additional further and tax, cost strength. one XXX of implement We the fiscal amended of start a result strategies tax optimize We acts of regulations [XX:XX:XX] be also take proactively tax of and returns result implementation to the identify twenty saving twenty twenty. tax several lower is in optimization expected ability fiscal to can rates two twenty points planning the strategies or fiscal credits, to tax these provide of to approximately are that of to to us implementation cost in national two initiatives, basis recently been filing global expect advantage that have actions continue gas to twenty percent million intangible than of XX opportunities as of including from. savings to twenty credits, expected a to utilize

in previously savings rate expense expect due the also point one interest announced five annual to We approximately interest floating million swaps.

the hand. the was of in an also had We XX to we've quarter, electronics quarter year. announced approximately quarter acquisition for we From a XX repatriate perspective, cash on allocation repatriated in fiscal which million and financed with first million eight the active expect capital this earlier million,

declared capital we the board's to to a cents We twenty I to nine compared million to finally, year of and XX twenty. range thousand the in twenty will quarterly dividend percent expenditures current of fifth year XX XX comments. in over of million approximately prospective approximately be call thirty the for And million repurchase eight also two hundred over under expect shares There's quarter. XX increase. eighty closing David We share, a authorization. X.X our XX per consecutive fiscal XX for seven million remaining repurchased between to turn expenditures million what approximately now

David Dunbar

of you, one, one, if with takeaways consolidated the moderate Slide If be Thank everyone could to quarter this twenty XX closing margin. turn Ademir. twenty to fiscal second thoughts. operating assumptions underpin revenue to increase above please twenty [XX:XX:XX] outlook. flat the first expect Key for Several quarter and twenty we in to of slight a slightly in

We the increase due sequential expect have segments scientific. customer of activity an engraving a electronics revenue and level and to increased slight to

slightly, expect technologies. We as engineering increase revenue builds and one to a fiscal cost expect improvement be for stabilize the twenty markets through moderate in days with operating prepare the seasonality shipping revenue as reduction we due fiscal primarily of activities. we Specialty decrease for In commercial one. sequential margins Revenue move and to slight a At margin operating in quarter. to we to as quarter Solutions, increase to momentum is twenty expect expected aviation delivery and vaccine twenty twenty market similar lower first productivity and margin growth continued and number general,

in complete Operational deliver to cost excellence seven dollars in fiscal dollars growth In the deliver initiatives fiscal XX XX In be across and all in businesses. gaining XX. the addition, we year. the funnel electronics actions opportunity growing Previous sales across term, covid-XX in anticipate storage fiscal eleven dollars in and vaccine see the are The year. the momentum opportunities million million businesses. over for to an incremental of expected in savings we attractive opportunities near will between million

positioned strong, please initiatives. flow supported We tax repatriation more with continued solutions into technical our very applications to segments differentiated are cash by higher we're for flexibility business Operator, with also In cash margin some, the further significant line and build new free generation, and platforms financial questions. well deep customized, open strengthening expertize.

Operator

[XX:XX:XX] Thank you.

the question session. now will begin We and answer

list. the asked star you the speakerphone. to customer question to on please ask your your pick keys one Press up So using question, We started please. then

comes from WJR home. Securities. First question go Please crestmore

Christopher Moore

The we you morning in talk of Yeah, Hey, bit margins were start that? were expecting. with certainly engraving you more some [XX:XX:XX] rebounded engraving. Morning. quickly behind Can a guys. terms further than good kind Good maybe of morning. what little was

David Dunbar

that shops couldn't yeah, a took couldn't place. take Well, entire collaborative part last kind tool be in of from the as into our industry quarter announced [XX:XX:XX] couldn't tools shops, released because meetings we pause of

really So that has up. opened

We obviously North put but increase, we it. saw same improving at we saw volume in effort a into the disciplines, operating time, lot the particularly So of integrating America.

local Hooven we in with And the in a few our know, global made years in can view our investment leveraging common mentioned world. in just disciplines showing closely our and so a practices working management last around the ERP operating first improving we up system Jim really operations. I way North improve the labor the You it's that America. that, with business, of is

Christopher Moore

about God a side. there is when it on helpful, the that Renco improvement maybe electronic Talk pretty off little good a [XX:XX:XX] goes start. the more like sounds bit to integration

David Dunbar

Yeah, [XX:XX:XX] yeah.

culturally, We with of it's fit. the are all, of great really first few pleased with a integration months first with

they'll know, great to family. bringing be the member of they'll they're And things standing us. a some You

had the earlier learned of For that in we that had that example, place in ahead they that duplicate, mentioned the the cross-selling for their they I response able what practices the in script expected. from. put we to protocols been are covid we in opportunities we've some they

channels together coming ahead of sales is our the their well, really model. So and profitability they're are running and

broadly we're struck. So very electronics, North America front. happy More that in on

customers it here, And really North part you And be. the come of would between America. magnetics if seeing know, the business, thought we it last than especially you strength a stronger cut sensor was along we're lot to in and Asia in the started quarter. towards the of Europe magnetics the

Christopher Moore

it. Got that. Appreciate [XX:XX:XX]

million flow just more expected all about of bit cadence. cost will want a XX. XX, savings, terms assume seven in fiscal talk to I the And the maybe that in into Just through little that fiscal

Ademir Sarcevic

that's yes, could we Yes, him, correct. tell [XX:XX:XX]

to we we all expect out fiscal about the we we before, lead year assets. know, If to feel You we with cosseting to this continue the we move that year continue where as are our to. to good and see of really

Christopher Moore

you in that of twenty [XX:XX:XX] one, it terms of or on of, it smoother? backloaded it know, is during more is And is kind fiscal the kind then savings of cadence during

Ademir Sarcevic

year last we about probably see we of first [XX:XX:XX] fourth year, quarter a Most quarter four had of year, the the fiscal savings. savings point to will dollars point of quarters, know, three worth the you in to two in

And some to of are not those going repeat.

QX dollars that So, you most QX without. would million know, to you where seven is see of

Christopher Moore

[XX:XX:XX] And sit like Got it. have then But where on you flow, would you to. moving into you we fiscal you. Thank the that percent rate looks today, the tax to not know, know, any rates elections two rate is XX side, XXXX. know tax think there that twenty impact on fiscal don't Obviously, what forward. will from it reason for on

Ademir Sarcevic

was maybe but sit [XX:XX:XX] to based we three you and up believe twenty little rate than know, significantly on where year. tax in a you bit, percent, who physical fiscal we sit might take prior know, that we what still today, Chris, our range contact the the lower

without know, you kind we where laws. knowing to if in be administration today going of new again, You there's are know, or tax changing

Christopher Moore

somebody it. Got All have you. else in back jump helpful. I'll line, guys. Thanks, chance. a [XX:XX:XX] right, Very Thank let

David Dunbar

else queue? in Anyone the Rocco. Hello, [XX:XX:XX] question

Operator

research. comes our our I new [XX:XX:XX] from burns was line apologize, products my

Christopher Howe

morning, Good [XX:XX:XX] everyone.

David Dunbar

Good morning, Chris. [XX:XX:XX]

Christopher Howe

wanted highlight segment. Twenty David scientific [XX:XX:XX] incremental Good morning. had sales. twenty here mentioned of I the to million the

we margin half and if operating top twenty year, line, you below fiscal quarter. this the percent this a to look look had we four As

maybe talk on margin as versus for making we out in some improvement on you going QX. you expect the investments remainder more year expect look that expansion. the little bit segment into a the we can margin line, play at how are opportunities to this Perhaps We of

David Dunbar

well, that I sell XXs is This The low, low Yeah, our as margins standard think well. the is business are products. in will level certainly the reasonable those products in [XX:XX:XX] expectation. still

the course. as same investing to largely term But capability. The [XX:XX:XX] our engineering short core business. business we're of will are growth, the in support they So in investments deliver the making also we're margins in the are

we'll a quarters have new development product We new and active begin funnel on, some the as very products. announcing roll

here going rates but you've to appropriately. expect business. And to that not So lower seen our invest cost plan [XX:XX:XX] that our the not the continue even to of you've invest structure reduce we're even and is in rates this we're

Christopher Howe

margin some is tools helpful on into to the good quarter, previous we recovery, released came margin QX. recovery of up out, level. still sequentially from shift the we if in strip Help [XX:XX:XX] quarter at that the is of being back that following around same some the questions, engraving, If in

David Dunbar

improvement [XX:XX:XX] is But [XX:XX:XX] example a yeah, are provided are. in that we it's important business. in business. the so America. And XX a know, productivity you it nicely, service a levers was work business that is we well, very this we're high with you XX here know, lasting is Yeah, yeah, the of because labor the We delivering volume to with fewer cost hours with business fixed base in as percent North

Christopher Howe

in as QX, Very barring improvement but get all know be economic helpful going and can we that we what's don't think I see these a in you know relatively QX, relatively we QX sustained seeing kind resurgence, that you're of different Ok. variations with a any [XX:XX:XX] that sustainable of happen unseen into disruption. to

David Dunbar

results. [XX:XX:XX] from on know, better are we're outlook the that counting discipline for practices Yeah, continuing. pretty yes, you So, you are know, place, they deliver standard consistently [XX:XX:XX] on we're get fronts, the that and these is operating our both them these improved customers put being market and to we work the in indications steady

Christopher Howe

line? was shift you're perhaps played currently in October, monthly And can change how in the month. quarter. and trend seeing [XX:XX:XX] talk out My look month mix is. basis you from about to as on has any the Or question there it If we trend or how Great. the what level did been last basis, more in specifically, they at that a perhaps,

month So, Chris, question change was seeing word overall out behavior. were corporation that a cut then out if to split or October, any one what quarter the just by overall, which referring and business we in in you're corporation you specific to and the in in were there, that we it

David Dunbar

so, I I too, you gave the segment that we seeing statements through No, [XX:XX:XX] through activity. outlook say And business. we're And by does customer you think, backlog kind of we're our [XX:XX:XX] customers. from and statements for the the know, go our growth looking what those year your sequential on based and our view segment, reflect of based aggregate wouldn't hearing to throughout we modulate in our on we're as

Christopher Howe

all That's it. Got I [XX:XX:XX] for have now.

Asia-Pac, thanks. Thank you.

Operator

and Chris please question Stability [XX:XX:XX] McGinnis ahead. from And our next go Company, with comes

Chris McGinnis

that Thanks [XX:XX:XX] phone guess not if lot about saw but benefit been Good engraving, but you I really productivity in have questions where you just the we productivity talk I from When place. put now at five my the the for the segments, other gains with look driving across my that we Jim on know, could answered, call. focus kind taking have a stay just you areas of morning. the you gains the helm. of on

David Dunbar

a be little correct [XX:XX:XX] QX great part serve, in require a eight QX, is line because from an example quarter lean actually them they in be the demanding sequentially the to which If which look of roughly down K you're driving in and compared productivity. we little advanced. a And to hundred to more customers improvements, the Ademir that's and of have technologies, Well, at productivity adoption of markets probably farther very hundred may productivity me from in engineering here. to [XX:XX:XX] I of five engraving

and year from from domes there that percent. So fixed And So in for capacity. set reduce ago, great spacecraft, structure lever project obviously And [XX:XX:XX] they years for constraints their the they've to a or where capacity more that's plant the expand manufacture time to percent then as critical that in the XX expanded recognized in across of of by we headed capacity just today, we were downstream couple started a XX coming a volume. We two. example. flowed machines we cost

example in electronics a both So great that's that's scientific. and

his with and to planning You operations and place working inventory businesses process. know, in are put Jim sales, team those

near-term a in operations, our getting capacity, XX the we and who long getting time couple to our demand a say, you've the their there's a from time especially that [XX:XX:XX] with in some When on more you call needs process example, that between so to So and there depending got on will we XX So chains varying lead a coupling three help components across delivery optimize America. all those what week the will their know, for tighter customers, week emphasis are, four CI degrees, North suppliers, right. time. them of businesses working have with supply and the with sales Jim's forecast management to a engraving and over planning disciplined on particular the balance lead, a cash the on and in time it the their their

Ademir Sarcevic

little the I [XX:XX:XX] all quickly, And if you very about in labor Yeah. can add, business. management, material engraving is content know, in the

So we management. can believe still our

know, You that levels business the are in. nicely pretty

Chris McGinnis

successor Talent prior. to maybe I versus What's the the [XX:XX:XX] Jim know.

it difference the that of making that before. so know, I position brings a successful early Jim had that so You in think What's you in people on? couple that's

David Dunbar

was leader. know, event how So an was [XX:XX:XX] being could manager. instructor roll simply an or to a the also individual an OpEx job, who first teacher we at run with help first good the a Jim He the a run someone was with, you who first Yeah, this, fill improvements. events, with of you process a the plant operator. he business. to couple could cracks [XX:XX:XX] opposed we with teachers, knows who [XX:XX:XX] He the time, great or leader, a know, as is

with so they credibility of have additional has a outlined businesses, plan and helped the our sit And with of a attack. credibility, problems entirety with the to lot really of assess down that him

past for that have experience it on in the hands that was having differentiator critical a was Jim. you So

Chris McGinnis

revenue That the of since [XX:XX:XX] your potential. on seeing isn't quarter Are kind last there going what how more you relief comments around just expand You I'm just just some of pipeline around seeing. We M&A. the and about the forward. setting up you approach? talk last companies opportunities you're

David Dunbar

[XX:XX:XX] Yeah. Yeah.

an So our quite funnel. we have active

unsolicited, would a to owners We year to throughout simmer you how I we get see develop. continue couple coming we cross that. are the bit we of unexpected now, But some didn't coming relationships some our as feel be not great came a know, quarters. will up. although businesses say market get to point was following. But most I opportunities. to these there I with these little and kind we this at unexpected we attention, many closer as But starting that sheet, would I the strong look people have much contacts like will our And inbound. work to there had be took a maintain with of and of be that that year the this continue coming year did step we fingers balance good pipeline them Opportunities our to end have say a that to like all think opportunities year, they the of are we may our the become a long, just actionable into we surprised in too the starting of guess back, see to

that sheet. balance the year. I think [XX:XX:XX] into And next of great acquisitions have the We string continue will successful

Chris McGinnis

Thanks [XX:XX:XX] luck too. appreciate questions. it. to Great. answering Good my I you, for

David Dunbar

thank Yeah, [XX:XX:XX] you, Chris.

Operator

And pause the final a our to for answer this team the ladies star, includes to to ask the remarks. time, and please, like roster. the management question momentarily you'd a and press at [XX:XX:XX] assemble reminder, Turn we'll over conference settlements if the Families one as gentlemen, session. and question, back

David Dunbar

teamwork agility In a great X able to unprecedented employees we one are these to responded have who globally fiscal circumstances Rocco. twenty results closing, excited live in with around in right, at to you, this we thank All today, of the were very the we and solid all [XX:XX:XX] start proud to twenty this forward degree part world, us and and Stand you. this adaptability speaking call. also XX support in heightened second again interest proud collaboration of to shareholders a Thank Fiscal around and continued quarter, thank be all your we part you X, of the making your look for with to and company. want very off to communicate I

Operator

sir. includes attending you This you, thank presentation. And all call with today's conference for thank [XX:XX:XX] today's

Switzerland and go me, a You, have day. you. wonderful Thank to

Standex International (SXI) 30 Oct 202021 Q1 Earnings call transcript