LGL - Earnings call transcript Q3 2019

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Operator

Thank you for standing by and welcome to the LGL Q3 2019 Earnings Release Conference Call. At this time all participants are in a listen only mode. After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]. Please be advised that this conference is being recorded. Instructions]. [Operator

hand Senior to go CEO. to Mr. speaker ahead. conference Ferrantino, Michael Thank the like your over today I'd you. Please

Michael Ferrantino

quarter Thank Welcome This much. call. third you is very to Michael.

Our is pretty agenda simple.

who has Linda through. is and going Tim who the Tivy, to a been the of Director line. is am We Corporate are LGL, is Controller, are a the with as I on DFNS CFO; fact, line of of going our further. of first Foufas, going some introduce people matter Biles, our on Director James management of answer questions part we're longtime the LGL, to the available as and

And turn I'm you I'll let to up, go we when address it any and questions financials. you. will Thank James that he over questions going address any that finishes through to James James? all have. the some of

James Tivy

XXXX note anticipate will Yeah. our after Thanks for everyone. joining the QX recording call. the making recorded Please earnings website be on available Good at call. our www.lglgroup.com call this and afternoon, that we

release a closed We of reporting third fiscal yesterday for press after quarter XXXX. the have the issued results market our

the the quarter Act most XXXX within you taken be recent underway, of addition our to of tomorrow. to XX-E Securities the getting required XXA our SEC Exchange Section of XX-K recent note discussion Section expected of should the within and XXXX may and and notes the this all for forward-looking of meaning statements filed This Form in in financial XXXX. contain statements with Securities to discussions advise we're should participants that conjunction Before with most XX-Q following be and the thereto contained Act

known and which risks with These SEC. the are detailed forward-looking uncertainties, in our filings statements and involve unknown

not can results from statements the implied will forward-looking expressed its actual company's by the that market differ there results conditions, statements. materially regarding any and reasonable believes assumptions based are no company the assurances company's forward-looking be its business upon future Although that or

revise any undertakes future The company cautioned no a as whether of events obligation of not that information, Readers any are statements, result forward-looking performance. otherwise. future are or update or publicly forward-looking statements guarantees to new

the where XXXX. LGL stands Let of as of me third quarter summarize

September wins order million, is XX, September The compared an backlog our million reflects XX, execution of of As as coupled XXXX, increase $XX.X market favorable to of which XX%, of stronger conditions. with backlog delivering the was design increase the and company's reported $XX.X XXXX.

orders planned. our and reduction been to have sales. faster the And building sooner received revenues, our to quarter backlog We reported this than than being due higher our being than a revenues growth production and due only

the across categories. ended an $XX.XX million of Revenues months XXXX. or XXXX increased September months XX, months XX% increase the three for million revenues of from for XX, ended $X.XX the XX, revenues of million $X.XXX XXXX. September nine $X.XXX nine XX.X% million, ended of increase September September revenues for for the all Total XXXX $X.XXX Total XX, were were million three months $XX.XXX product from revenues an or ended million

increased XXXX. of a which less revenues, as revenues XX.X% Consolidated sales XXXX percentage gross margin, cost for reflects for of XX.X% consolidated manufacturing QX to of from QX slightly

from product period. date reflects a XX.X% year mix decrease shift to the period, and margins to to year This year period. our quarter slightly gross to the date shift For decreased the during consolidated XX.X% date for slight prior in

in of product strategic company will mix be on The the long-term but million continues higher income its execute towards of products, $X.XXX ended Operating short-term. three fluctuations margin months for year. to ended for there the for $XXX,XXX operating three September the nine prior of of improvement XX, and months operating XXXX, September months income full almost the $XXX,XXX from the XX, XXXX was income an shift exceeded

the was months for for due September product of the $X,XXX,XXX XXXX. XXXX three gross months margin three to with $X,XXX,XXX This of income September ended of $X,XXX,XXX XX, an our primarily ended mix. revenues from XX, from income in change was the operating improvement Operating in a combined increase

assets, September the Net the ended $XXX,XXX the XXXX ended was net And for XX, for for three compared from XX, strong million was our allowance income to months our due our $X,XXX,XXX deferred valuation and $X,XXX,XXX from to release months to primarily $X,XXX,XXX XXXX income XXXX September of ended ended performance. September months U.S. the compared for months nine nine September $X.X XX, tax XXXX. over the three also XX,

was ended and three XXXX September income months XXXX per $X.XX $X.XX for September share was for the net nine respectively. net income ended XXXX and XX, and and $X.XX per XXXX share respectively. $X.XX XX, Diluted the months diluted And

XX, of with our was capital As September marketable million working cash XXXX, $XX consolidated in million, $XX.X securities. and

communications on Group in LGL yesterday, detailed and SPAC, which Acquisition details the trading DFNS As Systems and aerospace can NASDAQ X-K a an now closed sponsor qualified in $XXX.X of DFNS be release under the investors, that is note and IPO million investor yesterday. filed further and in press www.dfns.ai LGL defense million at Corp, the from is located raised symbol the $X.X

With call to that, I'll turn the back over Michael. now

Michael Ferrantino

person questions and right Why respond. to room the I point open you, we should up Thank James. between don't it just who think I'll the for

open it let's So up.

Operator

this at [Operator questions apologize. any We don't time. have I Instructions]

question Tom We the have [ph] is Macintosh from MFS. line from a

Your line is open.

Unidentified Analyst

our warrants able of you Are entity, that Yes. Hi, percentage good be to into the to morning. us the your equity if it, this success the SPAC proves be tell convertible new call what would you on exercise? a

Michael Ferrantino

want to you Jim, take? do

James Tivy

At that. get Sure. point, specifics. I'll the into we can't take this

the would take that at filing you for public a I look the just SPAC. So

Unidentified Analyst

can went an rationale to what to either you that or over confidence I of to happen how - terms be, opposed But… just Can way opposed you in XX-month the something. why Okay. as that [indiscernible] go upping high the seems as you period don't being risk as to to have as investor know,

James Tivy

have which are too economics - because being a attractive, with have part specific The and group. the SPAC sponsor are you SPAC, of they familiar

Unidentified Analyst

out to Okay. is why I - guess my I'm And this part is not. question in of I you SPAC. figuring trying way I'm invested the guess ultimately, the

expound maybe just for term you a that a So general second perhaps? could on in

James Tivy

I in think, if And a not the business within the sponsor public in a SPAC, combination has months. the there's lose, retains a but XX% capital, company. ownership will company, it - typically risk which combination, XX

XX%. at risk in puts which will is these return and So up a essentially retain capital, sponsors risk

Now, mind you explanation SPAC. a generic of a is this

Unidentified Analyst

that, recall to question you about that. way. you like alluded in there because a ago because you asked you've this structured seems has release incentive your curious last press be was No, three mean, or call a… and earnings announced your of or It on I this you four to things when that I earnings of a appreciate that sorts were now some kind I the back to I either looking done you as these may months call at why it it to goes before

James Tivy

million SPAC forget a communication businesses defense the from aerospace within billion $XXX is Don't $X to the targeting and sectors.

any than So larger clearly, have. for much target might that LGL Group acquisitions the profile

Unidentified Analyst

two SPAC that. hand a don't have jump mean, your of The kind or hand. I stock three the of to see genius and ago be weeks you in absolutely, filings the in were to No,

a they were about has get saying. of what bit someone little to excitement to Thank some us as you. trying So insights

James Tivy

you. Thank

Operator

of line Mishra comes Vishal [ph]. question next from Your the

line Your now is open.

Unidentified Analyst

answered. Thank question My you. you. Thank is

Operator

the comes question line next Michael Your of [indiscernible]. from

line Your is open.

Unidentified Analyst

the radar, aerospace you taking specific Hi, potential when general sort question, a I for before, thanks sub there have aerospace in in targeting feel growth my you're your for any that at a of you've of industry, been question. forward sectors you got sort just doing or what any of the quick going are missiles? look you have that business, lot

Michael Ferrantino

that way. OEMs space point point communications of lot and of market grow. answer the them I’d couple it We have to participate will has and we market space larger this think think a and through a growth enjoyed it

addition I low, rate talking on penetration is that, talked In the radar, we higher our frequency. in about time market it's you because last the to were to Michael, when

a new address We're currently a that of new us. a radar to about but market up the and would to that applications filter portion to project program, open research develop not start

job communications. done a job we've So great good in in missiles,

we've on been market engineering much with And to doing gaining higher that's share. the I that level do We What in in the the actually in been going area. a we be company, continue will is work we've think participating radar that. will

Unidentified Analyst

designing complex these you Okay, products. And sounds more in great. you've competition mentioned I getting applications think into of where sort engineering in have less before, it like

Michael Ferrantino

Yeah.

Unidentified Analyst

you are these products, I that But you've you seems of for types talk mentioned It applicability before? you that, would end satellites about when specific have - targeting are you think in example. like again

Michael Ferrantino

on portion the timing the business. operation, [ph]. synchronization, and recall big ever don't the way, we our because really focus do a of PTI, satellites and No, in I together don't tie Through mentioning frequency the ground we amplification satellite precise bird

So on we're the not not there. bird,

And in be be been it target five look it can can we be after years four a what last diagram. after particular and terms a And and applications the we we complex, that anywhere, half, doing EW. direction, it of going we missile, go for at communications, were in be can said we've it block and can

like temperature, products in been very stand, is there environment, that stability, and frequency we've high in build harsh do a very are a missile. to lots can filter of to and maybe what We high vibration because able control we

So changed. nothing has

We we consistent have, bandwidth 'XX. we're where really continue pretty The together, that to doesn't focus strategy small target put changed. have opportunities I competitor. average competitor we separate that but nothing's think the the in from those on the ourselves in No, we

Unidentified Analyst

Okay, thank you.

Michael Ferrantino

Welcome.

Operator

There further continue. this time. at [Operator are please Instructions] no Speakers, questions

Michael Ferrantino

no forward we say think conclude LGL, I call are Well the part and next the I Okay. further look our questions, there to call. if

So off. you. Thank signing we'll be

Operator

this for gentlemen, call. conference participating. today's and Ladies Thank you concludes

disconnect. You may know

The LGL Group, Inc. (LGL) 13 Nov 192019 Q3 Earnings call transcript