LGL - Earnings call transcript Q4 2019

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the LGL 2019 Annual Results 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 today’s conference is being recorded. Instructions]. [Operator

like Mr. conference Please James sir. now first to go hand today, speaker Tivy. to would over the your ahead, I Thank you.

James Tivy

Good on will be our and we call. for conference Hello! the Please at recorded and recording www.lglgroup.com making annual the available call. call and website results joining this note, anticipate everyone, afternoon, our QX thanks after

year press reporting fiscal issued a release XXXX. full the quarter for have the opened today We market fourth results our and of before

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

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

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

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

full as of year where LGL of fourth the Let stands quarter me and XXXX. summarize

reflects compared favorable million December as results, XX, XXXX. delivering with $XX.X backlog our The the December XX, of as market $XX.X company's our stronger increase conditions. in backlog coupled design was the execution XXXX as wins far to order of of As million

third million fourth for versus Revenues of $X.X was the XXXX the $X.X quarter increased XX.X%. of The million quarter increase XXXX. for

an full-year $X $XX.X the XX.X% increased million compared increase of annual $XX.X as to to XXXX, million. revenues For for reported million

to million the from was share EPS full $X.X fourth the on year. versus the $X.XX in a rose million Fourth year share quarter year, adjusted-EBITDA grew to for For quarter from $X.XX prior $X.X the $X.X adjusted prior EBITDA $X while million basis. million in diluted per per

from For the share share on full year to diluted per $X.XX basis. a per rose $X.XX earnings share per

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

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

Marc Gabelli

quarter today fourth to you amount long the Interim Ivan to from manager for and Ivan Bill past; as an we're company, joined of our and MtronPTI. time the a the the Bill been customers professionals CEO; well respective joins Thank proud you, in a LGL your all to engineer. as and spoken significant attentive Group. and as and in with investor, MtronPTI as us who many bring history as he's of manager, and who Arteaga and being you I'm colleagues thank James, Both us that the of available in Drafts, President and of joined with have Bill our as two well say the areas, Drafts headquarters. area both spending Orlando comes a at with as both

in We uncertainty. are period great obviously having this call of a

of safety are of adhere business and cognizant at essential in for as and considered all ensure broadly, that the in have want South customers the but we who we Dakota engineered critical both LGL operation. professionals our Group, to Orlando, we that point foremost our and to very of Indian precision is provide course first products to underscore The that business, we're are

can see with where one in operates a first. factory, reported which Today, our we the in are is putting in Orlando safety you results. still throughput, period This throughput strong maximizing backlog,

owned of an is release, supply and important which as part of However, is India, our have part our facility press chain what you today's in operated outside Delhi. and backlog seen just Noida, of that in

essential that which defense States throughout the front, will has country involves instituted know at Many great manufacturing, in that incur considered India, for however defense of business logistics not transportation, lockdown, national the the activities activities a essential in both a task as treated – to and India country. you are we the business. same are It’s United an an and

some government month have reopened at We're but it Logistics that no reopen the have although officials are back States we with that just in will and to working United is and be both hard in authorities the local April, expectation the the and assurances government of can in facility. facility working been our can point running happen, with India. that we

in has that That we've balance of investment where our and raising that working of bit you announced that With happened of the see program said, quarter, sheet, first had quarter. Jefferies, first been the the earlier with the quarter, capital. strengthening a the also a in ceased bank we part

sheet, know timing. a continue engineered great As we build attributes of products vertical the sector, to a that with there you to company balance many in opportunity the in and strong key precision of our a believe around frequency with defense is

and our acquisitions looking MtronPTI we merger competency, that However, continues. seen for are in opportunities core and of activity outside as also

prudent make the we’ll the allocation environment conservative move operations fundamentals maintain that this and to a strength we have businesses on forward. are with, they the to and of entered cautious the we take of capital We and – we analytical was prudent prudent and sure a In as will be that quarter focus outlined, very approach be approach. as

Ivan in help going to that, in minutes. Tivy along take to more just and can with Drafts we with with to Drafts Q&A. enter before three two we’ll a just have if move your time introduce about himself, what Arteaga, I So bit And then Bill to allow is quickly allow we of to James I'm will who and Bill Q&A, operator do Q&A

hand since in here to can introduction and over Bill. in bird’s November maybe to you the you and Thank a brief near how I and evolved started if eye the you, give you what give call world see the the has us just Bill, team. view

Bill Drafts

Thank for this I've you issues addressed. went and you meet join had course and just Dakota. been chance and actually of I fantastic, top to customers. joined guess allowing I’d on that me and India I to Marc months got I across X, what and five the it's is, since like much team and the booked to thank now the the great to you of country it board to and because our a the very I've a team Friday a canceled flight South was go almost

great. them I to the fortunate help industry company working are and the great and high essential But I satellites that keep business and so you so doing. that have sky a defend that airline this it’s with through helping precision and tell an and and you the deliver customers the and the we're design very We and on, and opportunities the products months. going our we in think know five been the challenges so products country the we're all we what differentiate we're can We're really engineering for are like

on. and reacting all number of safety one our happy clean CDC coming of invoked team, and and is at by of cases concern Didn’t we're locally, our rules and we're on. and we're security well mentioned, no making everything six all, to see for and or visitors facilities, staff we’ve No going travel course to-date our these it here I'm that but you that report the no in this very the sure the more feet and very that and as way allowed; virus so and to distance keep so keeping

really MtronPTI it XX I years a team, has enjoying this, blue can three Management Technology tell technology with chip absolutely I you other to you come companies about this I because company, and great know Engineering and customers. of just run great before have Leadership. I'm

tie-up I Thank enjoying look to really I'm time, but session. don't it want I to forward you. the everybody's Q&A So and

Marc Gabelli

move much Q&A. into Kevin, you Bill Thank so we’ll and

Operator

Instructions]. [Operator

of from question the Sakai. first is Chris Your line

Chris Sakai

everyone. Hi

new just a guess to the India question your operations. had Someone I – LGL, but on

second understand, in and second potentially affecting this. sounds, could help the be it you If will the much hit see revenue of we because me the so could quarter mainly how this quarter

Marc Gabelli

you, Chris, can And Chris. state Thank you please? your or your affiliation company

Chris Sakai

Singular Research. I'm at Yes,

Marc Gabelli

excellent an That's Chris. to have us today and you, we're with you call. this question Thank pleased on

then chain that Orlando. Chris, we the of and get service I’ll details, start primarily product out the part India to supply line more a few filter is of a facility but coming helps can part into

and in you've seen Bill be and much the into that are of of you think of Some customers getting they that certainly answer. as nobody without for a walk in to bit of assembly can – that able were designs Orlando, test we and chain Defense more, this India organized can lot releases, know utilize bring bring of one the customers career effectively and Department too through granular depends about them our if that to to press detail, we key a time then on that's back, something come supply but services

of go the to in front We're to The are in magistrates. India folks work. ready

outside is local In Noida, level in fact near Delhi of well local which the weekend the were the Uttar and in and in very both federal is I as emailing ban and this India, at the way. a we instituted was, another authority just the draconian director, with Pradesh, this of myself authorities, texting airport, which as certainly government

and have Some of on that crowds stranded is were government of you may adjusting. migrant still the television seen workers the

we've that and another precedent local people try the to back said, work. back facility. initiatives authorities. staff gone neighboring in They employer is work. There they've bring With have reached the the local at state keeping working to to them the really them I've is to to where on however, that the decision to work; jurisdiction, is responsible out told This for with back gone we're a

there. So same local that's we're organizing therefore the We're and eating at ultimately ourselves determine but if see locally subject and the is something sleeping to feasible, time authorities. that to

with was India affected, may of continue can March suppliers The process. that further again and alternatives. itself that are we until XX colleagues But evolving organizing It into India detail second XX, is backlog period comes edict context. we're as is said, within be through that April they post also an and released my supplies, this in – The there part source have and Orlando. get an should important what facility

disclosure relates it sales. to granular as you and I offering India’s Bill why clarity, together public of James slightly; of the to helpful was pass disclosures; James, to for purposes add who putting to just with some walk don’t Why terms in we detail to that this don't we've actual just question Tivy will the be or and through on offered just that public Chris’s of

James Tivy

so had figured Yeah, analysis, not back the out of better about one-third due. break-out, maybe and it's has little done that were of we've reached a was a level revenues, full we napkin on we’ve but a our Bill of filings consolidated all before the our

Marc Gabelli

napkin, while than trying and that a question of and do more produce components back of other can as throughput our re-shift Yeah, so you says open a and in an into and all delays areas the We're shift then at revenue approach inventory that when backlog extent a satisfy to the also is bit to be we're actually and affected. our of the as it's the timing. some organization key help he potentially India. the approach; comprehensive backlog, and coming that to and have Chris, know, out the looking To production as take there's we we little could taking a conservative we're

the on like much there's around unknown period time, element, time that is of some trying that the which time, us understand this alternatives we’re based uncertain evolving are is all but planning risk, can dynamics – based to right. and on be So the of COVID-XX, an taken

until So will which right an edict April government it have we says XX. from now the last

do Bill, to something you want that please? to add

Bill Drafts

a good situation. very did It's I very dynamic a think of job summarizing. both you

we and just like are impact we're that the on can and so said customers Mark, the impacts our bring back do things QX then there's with we kind in you investigating as and phone have reviewing well. and inventory ship that and top of what We there, has and backlog zero we’re

be decide down Orlando, you capacity knock we the building and capacity the back, we We go I we if have to India to of But know will think manageable. you in have expand past opens absorb April XX. XX impact the to that are date blessed don't so April you know wall believe that bring and and the any that right up, know then will QX now, to lots certainly if India we is

Marc Gabelli

still one-third give to possibly you we that our but that the India, we're And said back,’ back ‘bring just touched a as we’re says assembly be revenues our impacts testing, come Bill something and means quarter is sharpening on. would James that is said, how second when done of for on-shoring the point Chris, in production pencils what clarification, with is through of India. envelope, estimates, otherwise but would the the that Yeah, in cannot could evolve he roughly the

close a in expensive are – magnifying part a XX lot of the large happens plus India, clean multiple manual Now rooms which in doing manual to operating labor, of States. United employees, what gets have which glasses we and with with and

a United certainly that's we're analyzing do is and business the So today. to element while involved that States can skills we organize to want on-shoring the there business, in cost that, and something back bring we

is curve. if alternatives alternatives April date, use have Those the evaluating those consideration in taking all have now, a we're XX – curve, them. Right this into course alternatives. learning There of we a into

can't all we and of via communication crystallize. to evolve press hope hard a as give investors with we things you forms releases we numbers, So know it'll but any have

Is Chris? that alright

Chris Sakai

helps That The give is the all. timing you it better Yeah, main thanks. here me idea a of know. focus

answer question, thanks So my yeah, helps for that that. yeah

Marc Gabelli

Chris. Kevin, you, Thank operator.

Operator

next your from Yes, is Ian Cassel. question

Ian Cassel

was appreciate if the you remarks. pretty good to question. in wondering on you ask shape. this little the got I can raise little I your bit I gentlemen. if answered about to decided Thank you. your during Thanks comment ability opening so you a know I But given in bit a late, apologize capital some you why a balance sheets quarter,

Marc Gabelli

Thank your Ian, your and affiliation? state you. It’s Apologies. great a can question. company you just

Ian Cassel

Sure. also MicroCapClub.com. own I'm a investor, private

Marc Gabelli

related your excellent that by quarter. the the taken to an to and That's also update some a look board the and you colleagues in the capital The was in and to you. have of LGL ability Thank Group. or It's invest Oh! pleasure forum. all question shelf the action raise

alternatives company grow stickiness of of Chief As we've economic to more the Chairman. became alternatives the The to and few look has interim outlined customer started past shifted of under improved, structure were some those PTI overall said, for and oversights our the Michael and base stable the and as of consistency business investors Ferrantino, the a previous that quarters, at Executive over much business the with to of organic. our

So but products, bringing the on in on new looking investing course opportunities. of bringing and also business technologies, at then with themes different elsewhere new

we attributes of we along acquisitions the to on in of investment group, Corp believe a LGL deal in investment be investing, that call are a a If transformative position sponsor than arena organized defense part able business. possibly its continue seeing help in oriented and that become we're as larger to focus we in way as and flow, the flow of and is acquisition smaller department the return group deal or systems good of much a residual that, with oriented we a to LGL – invest and and business defense in it let's the a

market to So fact consumer. the puts in about for to exposed be good the in in is the part position a most able allocating us not the capital general to sector, correction which think

is the we're topic was still was LGL. to ability also of good changing and are valuations capital thought how opportunity our platform what use raise pencils. sharpening we the But Now of an the a evolving and

to and capital value, be are one to acquisition, use full there at an two debt the build years open certainly the Looking opened into if would have been the are point was and of explore structure. we certainly the next three time to markets

we it were of at that to the time. is would the like to grow look But something base have is company people were – company interest and and time [inaudible] that yourself the business. being this Ian the focus that it’s a the which is in situations but market, microcap special also and in accessible access consider, there at fundamentals broaden to the same an They institutions kind for on

Right, basically you, specific I but that we we can have In don't parameter a the that's helps. if for don't general thesis. terms, that know outline

Ian Cassel

I one just – just Maybe appreciate the question I have on then. color that. follow-up

and quarters back know related business in of color can lost if a so and February on bookings quarter row, – to you I again. a they provide course provide picked booking you know normal just of dropped maybe a could I talking January that guided has business You some two think drop any going wondering you to or know couple you sort release, Ferrantino know if think the quarters us wondering I that. know just were there of to you in and about drop some last were they and the press did was just you fact But or of the up. I fluctuations ago have all just commentary. they

Marc Gabelli

Yeah, that industry an can that's of the you and about looking and see question, slowing. evolution and within work I know because it see of thank that's you where at you we fair with terrific, also that talk the of – it's the We this, why Bill Bill don't barometer where guidance but business. think you I traction you. change the areas can part all that for provide if quarters of the new kind your important at

James Tivy

Yeah, I believe that's fair.

Bill Drafts

you. absolutely. okay, Yeah Thank

qualification most building customers time, receive milk the being lead know, so will up that unusual all it's the you for such, good and business, you the part. us product give finish a we they the so there products blanket be and certain and delivery so not and and defense to to know can want secure our industry us for pricing Ian, orders in a and

so to it. look And doing are on some QX a quarter-by-quarter larger book-to-bill ratio at go expecting – deferred assessment is lumpy, that was really so pretty and we fair business, reason planned because a to order had our we and for the gets it one not customer well,

same that negotiating are we in or we're others in then we'll the contract right Now future. three now we're that And and have the two that more see near negotiation. the thing;

see wild nature book-to-bill business. the swings So just in some of the you'll and pretty that's

Marc Gabelli

that working is doing relationships new team and Yeah Bill just to core bit well some customers product new with diligently and that and and a Bill to brings what some set further, take customers are speaking also set his and as core customer relative channels.

you are they for working to lines. broaden some of very So much trying bit on product the know the of core a reach

like would Bill, one talk maybe you getting product might traction? be to just about some that

Bill Drafts

we and At a Oh One, have Satcom, couple is we’ll the show – well, IMS that so industry. Los big booming not of be communications, in products Angeles, really sure! the satellites industry a announcing are which if leading: June addressing

satellites about the day. read of launches all You every

very And with trip I bottled their west OCXO, was other wish vibration excitement, out and this then stable could've the met of products I a I really something. last and customers large very is a number compensated on because it

we're specifications, both And them, those the really I exceptional press and samples leading see products specifications, so getting you and getting their them you'll so release into products. on are both industry products are these website, world leading and working our think they see with designed with

Marc Gabelli

that’s Bill, great. you Thank

video team by chugging today can. the is Ian So they the and call away best

day changing we're commerce and you are know of every keeping know it. the at You elements

backlog the profile So more major we're that evolved has said, some the some volatility the get in industry, okay. to backlog, to the question is grow Also there and can of But into as you of trying defense business more the backlog. lumpiness. with base, for the the thank The you on broaden suppliers base the the historically. of

Ian Cassel

thank Okay, you.

Marc Gabelli

you Thank the questions. Kevin? for

Operator

this [Operator at Instructions] There are no time. further questions

Marc Gabelli

know underestimate Thank you thank Stay enemy. it. is say everybody. is you and an very much, to Don’t – you like safe. This this invisible I’d

safety Thank nation. So our please, much. for the of stay you safe very

Operator

participation. for does your Thank you conclude That conference. today’s

You may now disconnect.

The LGL Group, Inc. (LGL) 30 Mar 202019 Q4 Earnings call transcript