KAMN - Earnings call transcript Q2 2019

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Operator

Hello, and welcome to the Second Quarter 2019 Kaman Corp. Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded.

It is now my pleasure to introduce Vice President, Investor Relations, James Coogan.

James Coogan

Good morning. everyone Second welcome Call. XXXX to like to Quarter Kaman's Earnings I'd and the Keating, Rob Officer; President Neal today Starr, Financial President Vice Conducting are Executive Chairman, call and Chief Executive Chief Officer. and

discussed include our indicated its The like current our I'd results due filed business, earnings could future of that quarter company the with statements will begin, Form actual and XX-Q filings economy we most the company's the to with during items, setting release. many latest projections second of respect the future and and on These to of Securities including the regarding factors, statements financial call its included company's plans events. forth of Before and with today's statements of in business. the any assumptions our expectations underlying some or future on described Commission, the statements in evening earnings note company these on of of which the economic are together Exchange objectives and forward-looking information revenue, from current report forward-looking the company's Form those the important consist XXXX results other differ statements to other management, and and yesterday materially X-K performance

result, of and a which the continuing Distribution Please of treatment note as that be the in focus as U.S. the on company. announced call the qualified will for segment, GAAP, results operations second of our of quarter, operations sale the we discontinued today's under the

and Reconciliations measures are non-GAAP certain financial applicable to discuss the in and X-K. measures SEC earnings are we filed the included that in GAAP expect release with information addition, to In company's as defined regulations. yesterday's rules measures

Keating. With that, over the to Neal turn call I'll

Neal Keating

and continuing Good the I discussion and brief earnings results to of our the year. everyone, for from for detailed over call results our you, the passing the of quarter begin for Thank events joining will quarterly a before financial overview recent you call and remainder call. of operations second Rob thank morning, more today's Jamie. XXXX expectations a with

leading discussion sale towards of Distribution to have our close like would focused financial flexibility. plan the segment we that to the highly complementary company businesses in the substantial our progress our completing we new made pursuing our of while engineered increase for internal and quarter. in the our the positions. and aerospace and results, technologies begin acquisitions with of significant note market products of innovative be solutions investment After will customers I enhance Before I transaction, a that will third We

will we'll to seek in return appropriate. our capital approach shareholders and investments, disciplined these to as remain to opportunities We

I turn will of to our quarter. Now the results a for discussion

the increased experienced start million, were Sales operations continuing over continued in first of from down quarter the we compared the when X% Second the strong prior to first but to slightly year. $XXX quarter results quarter. XXXX

programs, our programs. composite including contract S-XXi we delivered Bell U.S. increased sales new a number and K-MAX our had in saw During the JPF on Helicopter the sales increased quarter, government blade of aircraft, XXth Sikorsky and

And continue across months momentum offerings products rate July's during intake the and of We to achieved record at and first see our remained specialty the positive bearing levels. high order engineered six year. order

up are self-lube year. over for our half first bearings engine last X% respectively, and orders X%, and Specifically, aftermarket components

in earlier And Rimpar, and announced our considerable During to made facilities years, we this precision the the planned products this Germany. of us to bearings growth. bearings our just support have investments expansion we week, few specialty GRW, past position in engineered operation

build to operational acquired we to have XXXX, and a products prioritize purchase continued we continue state-of-the-art few made growth, capacity into forecasted the we over growth. organic to years, investments the business to This entered is we grown successfully drive and due has since agreement increase and sustained past many team will engineered have the that improve bearings we investment facility to an in operations land, and further operations will Our the of in representative efficiency. where our specialty

Moving to Fuze Programmable our program. Joint

product units year. During X,XXX government we approval record fuzes. delivery JPF for help for the for DCS received expectations which us over million to $XXX July, XX,XXX delivered meet our in between we the In the approximately contract total expect the will begin fuzes, and the U.S. year quarter, to bringing export deliveries and XX,XXX our XX,XXX of delivering September, from

the with of pleased Hawk performance recognition received XXXX Supplier our Black named also XXXX of Supplier of and the several programs are and by Year and financial being aerostructures New customers, Best of our operational improved Sikorsky the We Rolls-Royce. by from have recently including

which noted fleet I in completes of K-MAX K-MAX our and saw new active of This K-MAX addition Runner. Blade XX. lot delivered the delivery of the operators As to Mountain earlier, total our program, new build XXth we in the to aircraft fleet raised to number the April five aircraft one aircraft under

one our a state-of-the-art customer K-MAX support but flight number Super and customer also K-MAX consolidates delivery customers. In only SH-XG simulator. roof, new opened and our we Seasprite of service new facility a This both July, will includes support functions center, not which under

enhanced and fleet to new K-MAX our will simulator grow, for operators. new provide existing capabilities both As the training continues our commercial

we in approvals bearings of year, to As and contract, the the year are receipt sales in provide products shift activity look us the remainder operating second our performance and these performance JPF margin as half back government in and for specialty U.S. engineered significant DCS the confidence our our of improved we the in higher-margin for ramp our order the of anticipating expect the to we the Aerostructures from The higher products the business, sales well. mix half.

on well and execute in growth. teams operations requirements, have this these the we investments and Our our are support customer made positioned to people to

closer at a Rob over Now the for numbers. to look I'll turn Rob? the call

Robert Starr

from businesses million quarter discussing good for sold operations the the foreign from continuing the programs. currency million a today and decreased million Thank rates. margin sales and XX.X% over Net the year, increased to unfavorable will $X.X our the $XXX.X second $X.X compared morning, performance on exchange improved finish outlook. XXXX our period, Neal, our X.X% year benefiting basis revised resulting of quarter the in on an and update absence from prior performance margin Gross you, the of to from sales everyone. with by begin from I when for prior impact in XX Aerostructures points largely XXXX

was improved in continuing corporate over $X a expenses Aerospace The a in we operations, points by benefited reduction expense year. year. income $X.X in from basis comparable number XX% prior increase the million as XXX the the from operating period Operating by million increased over operating or areas. prior income margin in lower of driven

adjusted those business. However, expenses which period in current improvement the results an the period $X.X prior speaks margin XX to underlying quarter. the of in aerospace year was had than On incurred more or than in XX.X% XXXX, operating in higher the the the operating seen points approximately comparable restructuring we basis, million basis have

adjusted earnings had per and $X.XX allowed quarter $X.XX Adjusting tax law a reversal prior unable $X.X activities pension in and period adjusted prior $X.XX for diluted decrease period. Connecticut net operating this were a for tax a quarter, state continuing During state the In related our from state to the higher the and the than primarily net which increased tax The was per by operating previously change income. changes was the reverse changes share in the losses, tax in million benefit lower $X.X adjusted in share led the approximately $X.X law, was $X.XX, from of we the the tax Aerospace. when law at to from corresponding over to benefit items, the us operations. The due X% restructuring share received these Diluted to increase for the we lower periodic utilize. million in reserves quarter, $X.XX offset negative per period tax diluted the impact an earnings earnings in year. to year for $X.XX benefit million rate rate in

inventory we the product During full specialty half second the generation cash use year, for quarter, build will result for was sales the and our expected a ramp the the in as year. DCS bearing of of contribute to cash in for a which in second flow lines prepare of a JPF strong

With the XX.X%. ratio to build our debt-to-cap quarter, inventories in in basis XX the ticked points up

have with However, Distribution, cash to anticipated to sale pursue flexibility we of financial be the significant a proceeds expect our objectives. in and strategic position from net the

in to of the operating low half on our beginning the the sales discussed to our as outlook our and margins income our increasing our of in aspects provide the Finally, our at through June of for of the segment the for consolidated of end of balance sales year, year, the exception million expect outlook with the million, are we range Aerospace sale we in XX.X%. Aerospace announcement $XXX and by of in XXXX. million now sales a $XX Based performance the of all suspending and $XXX to we of with guidance for expect range operating first we the range are Distribution, XX.X%

over With the that, I to will back Neal. call turn

Neal Keating

Rob. Thanks,

products opportunities as businesses. the As focused of Distribution look the across of focused sale chapter and year, on beginning next remainder Aerospace the command, we and completing our to we're on engineered successfully the the new

Before line meet questions, our all for every the for the our of needs our to employees efforts day continued investors of support. open we their to and thank to for want I their customers

over back call the Jamie. turn I'll Now to

James Coogan

Operator, please. may have the we question, first

Operator

question JPMorgan. of first line our comes from the with Seth And Instructions] [Operator Seifman

Mike Rednor

It's Seth. Mike Rednor on for

Can the quick proceeds in what a the you M&A the expected talk front? And And with seeing can is past. that Just on pipeline? larger of of that the kind proceeds through -- few you than you've size in done you're these acquisitions here. QX, are ones

this. commentary you you're looking can and maybe so And at give sizing on some what

Neal Keating

demonstrated happy I growth, business, the automation the helped what and very to Mike. start with strong and we've value be business. Sure, -- very in to. I'd out building Littlejohn underscore business I sale command fluid a through think ability good and to to think that positioned Certainly, a thought power for we Distribution drive both platforms, was acquisitions. I'd for price

be been the Our sale has Mike. the months, recent segment, honest, in the Distribution -- products focus or of Distribution on to

Aerospace out the And of the in there. we're some efforts that market. we side, frankly, it our on now the So quite about opportunities active very we're but excited there slowed see

that enter disciplined, acquisitions prepared new couple but know in or remain the As leveraging technologies Rob and I in One, going comments, in a to the said today products, we think, to engineered markets. disciplined sticking to areas. we're Aerospace his adjacent in of

medical the we markets, and more two and of GRW are both APU business. that EXTEX did, business introduced engine expanded And I really last acquisitions The GRW into examples aerospace. the EXTEX that. to think really into industrial acquisition addition so our aftermarket the in and us excellent PMA

the enabled So of we've acquisitions, performance two get to been us into those but pleased they newer with markets. really

So think are that I those important.

of the appropriate part sure last discipline financial a the discipline in returns second is think And for we'll that get The question I maintain your making can good investments. is we one. the those

strong For of these take kind well that criterias, of in to balance sheet step-up opportunities a meet the that we've the traditional size the acquisitions done. we're positioned the with

to go was we X.Xx for million. both and think would combined were I Xx And comfortable to XXXX, that price that of certainly back If the quarter -- GRW feel purchase you in level. fourth $XXX the going the about EXTEX

Mike Rednor

can one, second the XXXX? we XXX how an about And into on impacts? any And will to great. thinking give see continue the you you're update Okay,

Neal Keating

have Yes, any last you operational some the expect, of for question, amount performance an recent orders significant a certainly our reviewing good today's in can we've after the call in as seen of few Currently, -- from we low Boeing. another time Mike. this quarters then We XXX. and from commentary for in both spent preparation not

as on that So XXX. for to a the with we're you more customers we have than expect. customer different pleased We can got single that. don't supply XX XXX, We've

And quarter. be -- would to size within And the from year. we top again, so for we because our try at we we impact, seen in we a We any end, we're of could say for is kind would But within yet. seen X end the XXXX, million haven't time -- them. the low that the impact haven't third we're lead end the low orders low far, already low did for at $X maybe say

we visibility a so can't there. And have lot of

XX,XXXs. on content think what gen, were is other low -- important thing to I the that's us very the that the next in pleased we with

to going XX,XXX the MAX, actually, to shipset. XX,XXX per on that up to we're take XX,XXX So XX,XXX. And to

the is really for So longer MAX us. term, to be going important

not be the to the there $X on one happen. And the was profit. that revenue, million wanted on to think I is clear impact thing I top operating will So transition X line

Operator

line next And with of Global. our question comes from Skibitski the Pete Alembic

Pete Skibitski

export the on Congrats license.

Neal Keating

you. Yes. Thank

Pete Skibitski

So a I missed I few is yes, maybe Q, between it the normally, fuzes. domestic normally, may thought there the of a split questions on on international. it, in be deliveries versus but kind

X,XXX you sense Or all of could deliveries roughly was us that U.S.? had a You a quarter. this the give split? But

Robert Starr

I'll just year, Yes. recall, DCS. have. that we're good bit the in little the that, part split, is question to our USG, shipments. XX% were number earlier back about good talked No, back shipment deliveries expected perspective, requirements. the change And a have looking in be you that the production Pete, delivery half, we preempt year, and at Those USG. certainly, driven on half ramp predominantly depending the question. But in the XX-XX think as a from -- XX% Pete, may in about we terms in if may we of a you That by profitability of and going a But DCS

USG recorded So done a ship really time. we DCS in our point when is time at is if for you really over JPF and recall, contract

the come expect for revenue from line back the So in a to of year of we the DCS. this amount predominant half product

Pete Skibitski

to approval DCS JPF the a is it, think to other drill to the to questions next fair three Got big down. of over going to Post skew that of the two contract, that, is okay. mix couple of it years, to Yes, export related the just now?

Robert Starr

Yes. over activity of another order few more couple say, A as Pete. see question, or certainly, The expect next consistent of a DCS order good the look that That's a would $XX,XXX XX per I we shipments the would U.S. to between government cadence there... we to things. years. our the is customers And lot in But Options range currently we're remains the high. of activity -- solicitation on and also, very indicative XX. the range volume discussions with in $XX,XXX Option fulfill and

Neal Keating

units. XX,XXX

Robert Starr

XX,XXX units, considerable U.S. are to the we as -- demand Yes. once out And XX,XXX sorry. seeing of again, so Units. government well.

encouraged about for So and visibility we the really feel the outlook JPF.

Operator

question our And Steve the KeyBanc line Barger comes next from of with Capital Markets.

Ryan Mills

expect for was free cash Yes, I just I of business suspended you the on Mills just wanted in the profile Distribution. talk to the I you This generation some percent cash given on you the or flow and wondering maybe magnitude of know is Steve. free hoping the also historical sales Ryan And a you cash free talk of for divestiture income? flow. a as provide about the second about was improvement free could maybe guidance little other cash metrics, flow color But net if half? provide of stand-alone could bit more

Robert Starr

all Ryan, Yes. questions. good

kind just given we of change the want to in As the earlier, our have the and reassess the we guidance, stated given just business. we suspended volatility, outlook,

can is is, as very the a flow significant the We in a continue first Aerospace on number and So our bearings to year half. in generator. certainly cash strong made up were tell improvement you cash ramp we expect that collect in half sales back the what of the a I of

year. the that this performance half at considerable expect flow So our in we to of state But the back in going we're all really cash do improvement that's point.

Ryan Mills

for the could markets talk And provide on the color about there? end And different maybe end you market trends across Okay. you're then seeing your a breakout Kamatics?

Neal Keating

Ryan, and can well. Rob chime Sure. start, I'll as in

of order we the to commercial actually across had incoming the we both pleased for It's six wanted year. strong record we been first that and underscore rates really that were military. months First,

think for of new for is other facility but five back the the business for if predominantly So four, And we the a was that the our about -- element well. Airbus opened take us, as that really rolling Boeing years. a bearings that over now traditional markets in RWG is I serve production, last In Germany. and helping step platforms XXXX, diversity and we in just thing think that I you

we're benefits well our for that We've to today. So be at that flexible here ongoing, the driveshaft bearing gone and continues through seeing aware of you're and that's businesses, ongoing facility. self-lube expansions been Kamatics

the our of the Last our and week. in the facility, our down expansion -- earlier year, just both facility expansion GRW this Czech announced of that EXTEX of GRW facility and now Arizona, we

it's bearings Germany, of of business all driveshaft miniature So it's out whether here. business businesses, PMA our Arizona and in our it's across or self-lube our flexible whether

that to there the the business. with encouraged order that capacity we've to seeing rates and that place expand able incoming put really we're production So in be we're

Ryan Mills

the One for Okay. to corporate going back should divestiture, $XX and to assume of million. normal the $XX I I Is that good assumption? expect about million hop to of about more we following in? the get million $XX rate rate run kick do annual in when I'll a a think you lastly, the quarterly If And savings How me, forward? queue. costs run $X million

Robert Starr

Ryan. Yes,

as relates I'm appreciate, discretionary you remain we focused on sure as managing very expenses. corporate, So it to can our

different year-over-year. across In benefited say wasn't fees. we rate, what insurance, group one the consulting, will help, I terms area, of be whether number specific this There We run it quarter areas. a saw really improvements of legal is

terms $XX estimate clear, be just an the $XX of In across is the really is organization. to million, that million that to I want broader

million clear represents, $XX what $XX that continuing work be to estimate. and to million that want we're just I to refine So to

a of normalized going that XXXX get much to be to it our a provide to on we expect corporate view would better as guidance, kind forward. able I we'll relates So as expense,

Operator

Sidoti of the Our Company. & Instructions] next from comes Edward line with question Marshall [Operator

Edward Marshall

this that is that wanted million in follow-up you So to and of question, the savings previous a had Rob, just to I that you talked $X ask corporate. about,

Could be cost You kind that versus a might help, savings of group legal, $X what's about mentioned as few permanent forward talk move things temporary you from etcetera. what million maybe number? we

Robert Starr

Yes.

I the of just kind quarter to benefits year. relative some what of last we we reduced was experienced onetime just say, of So saw Ed, that costs changes kind a combination this would and structural really

to to appreciate, our to continuing continuing million certainly, to as touched be million of we've And call, as preliminarily $XX providing identified June be that But evaluate, we to specific organization $XX we you as the year, across we're to are that on And savings expect expense. the appropriate. able of We structure. providing be deliver. not a for balance we'll this look and refine and that, updates corporate at guidance we're towards our going

right even of just are vigilant terms more you managing expenses now, anticipate. as We very in so would discretionary

that a of So we just we view and of some structural you things as fluctuations view some that that see really, combination quarter-to-quarter, kind normally things year-over-year. as

Edward Marshall

million $X me again, Excuse it. to that $XX savings that but Got looking to... you're that for in million included trying $XX is million

Robert Starr

No, no. you're I what -- there nothing we expenses, but of on a mean that's what the focus is out do. Ed, really terms in ordinary seeing I of just mean,

that no, you kind there the So can million. to nothing assimilate $XX there's of $XX million try to to

Edward Marshall

rate that rate can talked talk and you're today? On at Can you or it. MAX? the it the earlier Is what impact MAX might on about to have -- another it you. question us tell XX the XX the Got producing you XXX the you

Neal Keating

number by program. that, was outlining things the that the different I the Ed, was of have of customers on I think to MAX that we XXX get that trying know, one at You

chain catch this be a today. somewhere the So we're that across rate to they're as supplying that they Boeing from, from customers number were. of have we rate at that to, probably between suppliers to because, used would opportunity XX able where that up the the an the moved clearly, And XX are supply anticipate

XX So customers really and the to XX, at end say supply hard, for place us chain of we the are that or supply we given to. is at we're XX number the in

Robert Starr

Yes.

XXX But us would feel we hard base other we we're on I to the year. of really is, year MAX, relative the exactly serve. right. discern the with comment the for the to minimal absolutely risk the rate, within for that towards half given add specific Neal lead line our one of the because good Just in balance earlier expectations orders to back is a It's those customer we're time

Edward Marshall

intake, and Got at about it. look what they're that just And comments to engineered like the backlog, if be you I happened of business, to as I book I then dropped products and And a in other may those quicker appreciate the weakness it I and understand then order of in versus bearings. XX% looks structures? made some compare Can record were ship in be give orders maybe parts sense year-over-year. me that. may it

Neal Keating

pretty had Actually, structures, we in rates good incoming order Ed.

in we're for we I what up think actually quarter. that saw was actually, -- the backlog second

So...

Robert Starr

-- Yes, in just I seeing, driver largest you're the terms JPF. quite the kind what be you're -- to of around a really, looking think, change just of will Ed, if year-over-year, backlog of the

Edward Marshall

Okay.

So...

Neal Keating

year. of the end From the

Robert Starr

Right. Yes.

Fairing, If in you're That's large to looking from mean, lot are other. dogs, really of of but this backlog. other really, as I Boeing of term, drivers of, and That year, is use two orders slight cats XXX, are reduction as there's AH-XZ. each both JPF Wing-to-Body from the kind be the a XXX product a hate by offsetting accounts in going kind of the commercial and well of offset end to then for it's there terms I the that lots

backlog. roughly a that's in X% So you're seeing why reduction year-to-date about

Edward Marshall

to was We year, it I comparing Right. last but up. that's okay. follow XQ can

Robert Starr

be The going to JPF is really our largest.

we've million got quarter order in the that $XXX first year. see, last can You

Operator

Chris comes question the our line And from with of Dankert Longbow Research. next

Chris Dankert

us, guess, again, look talk new any the Just kind the as far customers like? I can contracts -- about? what's to as updates or remind Any get just there fleet update operating on SH-X? we of

Neal Keating

quarter in as talked call, of year. Peru. program earlier upgrade of currently anticipate we working we for with about last that the we're just and a shipping the third SH-X on know, significant you the -- completing upgrade an -- Egypt. this Chris, we're those And aircraft, earlier We'll in likely

but have we XX fleet. them, continue their yet, So have contract a program. for or don't that we upgrade in towards to $XX work million an it. was XX aircraft did we it They Last time

So the for longer-term four going is then with Egypt in fleet some into clearly, flying help we SH-X. to and see term a good support service annuity the Peru from adding as And opportunities the near with well.

Chris Dankert

Yes, it. exactly far No And update helpful. as Got that's AXXX? there. changes any you planned? ramping then just Are still as as

Neal Keating

Yes, overall, nice we feel the aircraft. about very strong have our good for AXXX business we content platform about and feel on We Airbus pretty about good us. AXXX. a has a lot certainly been talked that that We've

as So production, higher now they've helpful rates gotten us. certainly been to for of it's

Chris Dankert

up for mean, was I Yes. fairly aero assume, quarter, whole the nicely. commercial I

Robert Starr

No, Yes. shipments. of good timing just pretty given commercial side, the on had quarter we a the

Chris Dankert

Yes.

I helicopter obviously, facility. news one for me. Just exciting the new mean, very last on

any there far bidding, helpful. commercial on interest news Just as as would K-MAX? Any color be

Neal Keating

-- that for we Yes, question. thanks

that, the the interesting now. what's we that commercial lot XX very of active And of five right K-MAX have customers. for customers really a production, went one the is first happy new to pipeline were We from aircraft

within a So another excited right we the group scheduled about week. And that. We've visit got from also, Marine for have follow-up of we now. early next were really lot actually activity Corps that

Operator

Pete Alembic our from And the next Global. with comes of Skibitski line question

Pete Skibitski

to Or the seasonality expect year? before came sharply it -- you of do ramp the on up guys export Just pretty in with want dip, back are third I the you Last year, quarter seasonality. we pretty revenue year? big I more that had one believe, of ask; fourth a on follow-up same the see this the to in balance approval, a linear for in going sequentially question quarter.

Robert Starr

Yes, good question. Pete. Really

we to We're we third QX perspective, going expecting I JPF in to see But continue engineered fourth significant to sequential by expect seen move ramp we bearings think we as be improvement precision sales really, driven also notably, from quarter. quarter and see the between that's cadence in QX. to largely products, sequential the some have certainly, really balance the improvement year. And in most our through our well pretty that a the QX. expect ramp And the a do relative products. of as and

Operator

line Barger comes Markets. next the from our of Steve KeyBanc And question with Capital

Ryan Mills

a just have your allow I curious, I'm with also it want in the more stand-alone costs? rising the you're to government. to couple you And about talk inflation COGS you to China. level the Does kind exposure of pass Yes, of business. maybe seeing through contracts follow-ups. provide And

Robert Starr

Yes, a couple last Ryan. fixed of of from there, start I'll things our contracts majority question. with your are The pricing.

that typically have a into are if to with contracts customers. can protect fence. there typically escalation what suppliers our of is level that build in our we and would things, tariffs to But certainly, provisions our our other risk agreements we unusual we very as that typically us. So there contract for we is long-term negotiate or extraordinary costs enter we in into a And with so good do you offset appreciate, typically

do that we've So possible. we as but best measures taken exposure, clearly, some mitigate contractual have to

would to But side it that we are the we're bearings press. seeing many especially manufacturers, with As of have trade prescribed A very other of relates and other I lot like opportunities. in by not -- China are impact. to China, significant on as certainly, what any real out impacted to that relates materials, our how COGS coming special seeing on we issues be alloys it don't the our evaluate going really materials risk that and you're that think

Ryan Mills

more your Germany macro Europe, maybe about given expand talk decision little concerns? can a data Okay. demand And in to bit weaker talk you and then in maybe trends about and Brexit

Neal Keating

the strong that good in their of Europe overall, GRW. and business ongoing correlation at you is why whether really we've invest. growth years some business. it's their -- to a grow that what certainly, the slowdown it the across Certainly, industrial, of for preparing say they ways. the we've we China. in continued in growth of But little continue would And it's industrial recent impacts are Brexit, medical their the investing about we with I of very issues aerospace, a seen for the ongoing in and One -- all two to expected business. the that's have may good low had whether that feel look of the And But there. opportunity part when diversity have We bit to we

Ryan Mills

there. my to around or complement And seen where or offerings color environment? service talk than appears ranks business priorities? M&A. be others? about more you units then accretion free the you multiples demand Have cash Appreciate any what maybe a just come in to can so last in question down margin your And you there want slower accretive flow then And is

Robert Starr

and of a asset Yes, And we're multiples the unique Ryan. have remain types of the desired mean, we assets, a depending potential purchase engineered things, looking bidders. number nature for different couple that any very still across decrease very purchase assets because competitive. asset product in are of of an notable the seen not on I multiples certainly the certainly,

a seeing landscape. definitely are competitive we So

I will at aspect metric primary reflect cash really accretion, the very In mentioned, look is, be balance that us, look strategic but certainly, our clearly, be company. is a But we're financial acquisitions. capital really certainly the accretion, of at to transaction. -- transaction accounting how cash financial terms given state by terms to accretive reason we're and to there EPS that rates doesn't any sheet, going would do deploying going is we certainly while of metrics, and important, towards disciplined side, we internal measures, it, why as a dictated we mean, of -- the virtually expect, of you economics be look largely Neal a return, as be it the that that we for to underlying going strategic GAAP in very at to on the

but we're So as to we be capital. the disciplined very that's going great, deploy

And markets question, terms look asked then terms complementary. what in one you in of other at, might we of

proceeds. for on have I transactions and engineered for GRW a EXTEX, acquisitions think, as the provide really map and our provide side, really us extremely Those on to the great a we're we've Neal map. been at road alluded road products how to continuing terrific look successful most opportunities as us to, recent deploy done

Operator

showing no questions further this at I'm And time.

said, Relations, remarks. of the to closing that Coogan James with Vice back I'll President Investor So turn for over call

James Coogan

Thank call, speaking with we you, the for again report results us for our to today's joining third when everyone, and look quarter. we forward you on

Operator

the Ladies conclude This and have thank you disconnect. a may participating today's all wonderful in and day. gentlemen, conference. does you Everyone, for program,

Kaman (KAMN) 4 Aug 192019 Q2 Earnings call transcript