KTCC - Earnings call transcript Q1 2022

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Operator

Good day and welcome to the Key Tronic Corporation First Quarter Fiscal 2022 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Brett Larsen. Please go ahead, sir.

Brett Larsen

you. Thank everyone. afternoon Good Larsen, Officer Brett Key Chief am of Financial Tronic. I joining to for thank like us everyone I'd call. for today conference our investor

me Executive Spokane our Joining our is; in Gates, Craig Valley President Officer. headquarters Chief and here

or As predictions. other the we of may during you remember results course financial regarding statements such would Actual future always, are projections the this that or performance. company's like future I materially. make remind that to might events forward-looking call, only events statements differ or Please

For you information the we latest call note information our regarding SEC filed may more Please factors review operations. this statistical our outlined documents with will business and the discuss in XX-Q, specifically has X-Ks. on risk XX-K historical and the financial company that other the and

is a for Some be will released XXXX. ended on press in included of version of this our today's this quarter we recorded Today call release information X, results our website. available October the and

quarter of fiscal year we from see the programs. new of period the and million growth reported same revenue $XXX.X We're million existing For excited X% in $XXX.X of fiscal measured XXXX. to up first in revenue in total XXXX, success customer year

XXXX for X.X% operating of a was and chain period and and margin margin on new of both transportation, In logistics, adverse fiscal XXXX. constrained first and the continued existing to our same and global supply overtime chain margin While impact transportation by continue the X.X%, of margin issues materials X.X% supply had remained fiscal earnings. pandemic factory which was strong downtime, the be gross compared challenges of of X.X% the fiscal an margin demand has The expense, for customers, and the for significantly quarter to revenue and first quarter XXXX related operating cause to global increased to costs, gross pandemic.

per quarter and other share, or professional was XXXX. investigation XXXX or million, the financial Earnings first also point compared disclosed the quarter $X.XX the to $X.XX impacted internal million of XXXX were to for net fiscal per reporting for quarter. $X.X first or fiscal fiscal during million of of services income $X.X related share $X.X the $XXX,XXX, For previously the period of expense by approximately legal same

balance Turning to the sheet.

We as maintain delays continue production result quarter supply in of of related programs. to financial fiscal transfer the first a the and strong position a XXXX ramp chain and new continued of

decrease quarter. from inventory Our prior the turns

in increase in balancing In be trade the that periods. We end see out we from The in parts are were and production $XX.X than future more production. quarter demand to expect net million At of carefully later quarters, planning future to planned up time in the our likelihood now for first inventory customer much with shipments historical revenue. bringing successfully of reflecting in the prior requires in of expected the the look the further quarter, quarter. the turns timing line receivables the we

and Overall bank of current to reflects where this availability course up of to possible. gives $XXX million you by of growing related days largely production risks periods. growing delays as selectively programs. fiscal customer ramp risk fiscal To us This of $XXX pandemic new potential potentially make and our $X.X during as that operating facilities year pandemic XXXX. slowdowns delays for some to restarts quarter, capital and the of expand the million. our prudent respective eye SNT related days recall from the facility for we liquidity in cash to to to to expenditures This on-boarding base. plastic it we working feel X. both and due more increased production plan XX capacity. prepare a increased ratio up light payments customer coming preserve our full to DSO and quarter the subject from careful key we total and on continue and and who supply ago, equipment, capital will We're limit Total in and XX production has to production invest requirements about their up will X.X a with and will Our impacted is to keeping program also continue our to new a our XXXX impact launches, improvements balance Nevertheless, customers million expect adversely timing capital components million be around during add of in is year well were for in borrowing which shipments manage in equipment our credit efficiencies. existing sheet other efficiency molding total Despite We markets. first and our and the growth expect flexibility the expenditures were of demand, expenditures $X capabilities, to

review $XXX million to attributable customers, We're cannot the components. second currently global expenses which investigation. shutdown of global we pandemic, internal approximately quarter delays earnings later the to share an actions $X.XX limited of estimated legal regulatory outcome continued includes and closely and increased we the XXXX of a effects working $X.XX suppliers, any minimize the and $X.XX key to holiday $XXX logistics related of freight For also of costs subject key employees the per with predict said the and the from of That of quarter. to of our availability to in diluted the to million revenue disclosed report approximately in support fiscal previously expect to week financial $X.XX

and see customer rapidly future supply environment impact current continue temporary Mexico, and demands changing while guidelines currently new possibility China Vietnam demand periods. are the we operating costs, of While our health the potential other could as and facilities the increased significantly coming following closures, chain operations and COVID-XX summary, factors uncertainty in to fluctuations in disruptions during U.S., customer wins. future in In to

chain we our by continue pandemic future disruptions impact supply growing remain by future the backlog during to and first encouraged for and and business quarter are growth. our the our periods. prospects risks in However, But

sales and to term. company and prospects longer unprecedented demand win to business Tronic. Craig? me. profitably believe overall of to Key the over we strong it to increasingly programs The increase appear continue levels for EMS programs won our that recently health for and New well-positioned continue expand That's our financial new are the customer we

Craig Gates

thanks, Brett. Okay,

for to supply to and win up continue X% continue quarter reported challenges and we from into fiscal ramp headwinds programs face were positive moving the new growth business. the momentum We pandemic stiff chains While new our and pleased XXXX. with the worldwide year-over-year

quarter chain parts. the During the revenue improve production persistent the shortages components first key for customer chain caused have the near face been electronic excess worldwide industry and timing driven for shortages would burgeoning significantly in transportation million. of extended term. not to do have particularly the The costs triple. $XXX not of supply continues we it believe quarter disruptions in expect to demand first the for in Had to the supply issues Unfortunately, we supply

all broad new challenges, of our labor based sites We with of of and these winning production and ramping the a we the some at face shortages of part labor as costs continued programs. also shortages. customers In increasing staff struggled new

won and new would plants medical cost programs offshore. diagnostic to without the many have first involving U.S. to pharmaceutical water ramp the our our equipment, we industrial won During the programs in subsequently plants We transfer treatment. not quarter products programs this opportunity first and lower testing

continues over a capacity last to and year that our in we grow to production workforce Moreover, ago Mexico. million Vietnam its increased facility year from generating recall new profits. doubling You'll in feet square a our

future. expect We in things to Nang big facility our continue Da from the

of end previous a grow customer lessen base on concentration time U.S. and supply very dollar. Asian range supply $XXX as make onshore supply market production and risky, our China answer As significant business. factors Tronic We $X pressures Asian continues into we chain companies have to American to and tensions provide increase , easy, calls, no to emerged Demand between their production with with powerful. to costs the tariffs, of to for discussed political everything those the and million. diversification These North less weakening particularly driven our a in has less ideal to U.S. in costly. for the Asian needed intensifying and overconcentration to million increasing programs for North Key America, remain foreseeable on

local close higher Our cost for solution with low volume markets companies for sources volume set provides low both products. to and products geographic sources

those by an companies have We competitor from product. their the move smooth have that lost companies to concentrated production hence the providing facilitate longer control engineering attract and been services overly Asian a source, that enabling capability. engineering to production transfer of have the with also design and who site, can no our of We

custom cost lessen array vertical the in any for We're after involved a of can and Our transfer. can developing we a over product of processes about products onboard just integration imaginable. staggering time risk decades

of and uncertainty into Brett now time, over term. significant these any risks force they chain challenges customers impacts force IP supply companies and to capabilities The have can our chain same answer to can questions. both to Moving these for significant At we their to and of fiscal factors. further still pandemic. supply and your components that portion of surrounds of and the pleased business the threat disruptions supply power key global the our fully the These XXXX, chains I appropriation formal will the continuing minimize a long the doing believe outsourced continue more recent outsource all presentation. to market recognize control trends to degree with and should concentrate our the see to continue carefully macroeconomic their on one and many on which their attractiveness the design will availability, growth events risks This be the on their to concludes elongated continue wait who to partner an our costs partner. region

Operator

Capital. Instructions] [Operator from Bill will Tieton you. of we And first hear Thank Dezellem

Bill Dezellem

you. Thank

are those with me wins. size Let start please? of three each of normal program Kind what with my your

Brett Larsen

are Well, there's about billion. two XX

about is third five. The

Bill Dezellem

and leaving to wins kind back do Chinese a And perspective the supplier versus to are that, you give as some would to U.S. degree on came they what other how you circle story? of these some about

Craig Gates

to to deleverage themselves on I'd talking who's is talking trying today us Asia. just say us everybody about

went four there were I three XX reverse on lay product they people, to their two now to that the off own. their a The bring eventually and have these people, their lay of think their went And people. five over when off time try is last same. that. were able They engineering to happy wherewithal you the all They are the back years factory the production because to come or narrative of lay off ago. don't of remains really examples they out that

in companies the sort help So to are happening of circumstances that that today. survive we being ended up ideally situated issues

Bill Dezellem

actually And have that for almost that components? and spoken you out talking customers fully about, of the to the two you issues there B, you enough component in meet And to when sequential will I'm halfway then going is parts and frankly every expecting meaningful growth, are ask demand. A, your question company

Craig Gates

to don't I answer have an that.

think who is do you they I wrong. tells anybody

continually product be day the going in are able to their suppliers that We us supply tell to as and very the call late not us. up of the They're shorted that by ship surprised was they've game one been supposed us to by suppliers. in

says soon. the to confirms that end certain it's ICs we see view. years for seeing lead are We PO for in a I up going read that to everything nothing new And and two of sight times

Bill Dezellem

is So mentioned say are of revenues you years? in the constrained I year unusual your it's to period quite years, one of times which two past. would by lead you from that these two an What but the extension you said had certainly just think one proportion

Craig Gates

you What it don't which I answer what which customers use our am portion because that not Are electrical components of that to want asking you question sure constrained? mean, are I is.

Bill Dezellem

components, in revenue proportion with thinking specifically lead those years. numbers two not am $XXX you times currently million but plus components, percentage to of What about did by one are revenues. these you could $XXX million revenues, I by constrained of of have done

Craig Gates

have has a or parts times that lead out Almost more. every customer year

customers market. Some to of doing efforts reacting are in job gray finding our a on the those better components

their Some forecasting ago job better forecasting customers and year out started doing a better a of out are job of a requirements. doing

one advantage have take designs to we as quickly can't. of find lent marketplace some for And component can the replacement to a themselves on respond we being a that

with our how that's and day. not a address incredible people fine for widely how containers. the there's government up shortage to So we're as this be help is been sure catch depends to catch going topic to logistics see, attempt amusing It and up able how gone a on an far watch amount it another known. soon of I'm situation we to has of to effort the are press watch day just it another they is, late to But bad for But them. $XXX

Bill Dezellem

Thank insightful. you. That's

different a equate said And slightly year What level of have you parts doesn't Let times? just that me for we to on angle currently same take you because one this revenue buying that I'm recognizing revenue today? plus lead are topic.

Craig Gates

two them need That's an a what product event us up their answer of they we majority because question for available, should that not. that are we've number of to the customers the sign do vast interesting but or to convinced of or able to our in been that covering is parts one the

that customers or out to five, go Tronic we three, whatever who enough make a ahead order think those when on you're this my or for year to them need four components, that number risk do a you of or So low will can't if Key it will or or in get said buy we've of we to and a product. behalf. our But from going components one buy inventory ahead you two, the you will pay, got

not. customers may judgment parts mix. that on that availability that for pay to working yet may there's and we our or we're right our going things who that off that now there calls bets of So is you're on own There's think aren't to stage the

answer parts. So best of question right to my $XXX would we're about million driving your be worth that now,

of of to our themselves about as situation are parts right for $XXX and we We be that driving on amount How the we educate still educate liable to that amount in are parts way severity is much ways it. to and being to the that million they support is going guess customers driving of it. the right to reduced the of address revenue, revenue. We're I support say

Bill Dezellem

so And or how level? call long this when long start or at per it the when that's buying XXX How buying you're what start today. doing you did did you level, quarter ago

Craig Gates

actually with buying be. we at we a hard and have hit higher above why that's that previously them levels were to where want level been inventory We are so

But found convince parts to parts on be to reasonable to gray $XXX we that million thought So than market. going at thought equivalent miss we that not the ago, two were We our rather suppliers unprecedented get quarters but we revenue amount, were customers buying to pay for just worth of continues we a were probably amount. around their worse going because commitments an PPV able it better. to by

on we've off So backed buying. what we're

Bill Dezellem

to have shipped willing receivable that And that to it timing relative something it's that Does easy parts thing factory? had you sequentially coming do have due a full if anything they to another simply was that increasing bill But don't check tie have not write I because of Brett accounts when their they to on when to of commitments actually a product business of to don't it's out being materials. the said follow to customers the want say buy to up with quarter. in will

Craig Gates

customers they're are Well, that you from one end in to having in one by not was, paying say, the time to Brett paid up people that but whole missed chain He as mentioned paying two bound some on is due time. said that second on one time he not reasons. the was said you difficulties other. supply The because was getting

your that commitments can't we we to pay it written get handshake. for asked get answer complete with We don't from a second the with it or inventory to as when far for we question, customers a agreement. to your As

So agreements. we haven't those had anybody renege on

hey, it an we up more than says, you pay just before take a Although check. they does email write missed that

Bill Dezellem

to little going I'm And here. with you a have fun

hairs of was million by which rate, here Not would annual XXX cut what number the that's about tightly saying mentioned demand. for you the per You about run here that had is were there today said quarterly you annual in million when letter? you I split rate but higher to versus run too quarter And letter quarter. four your this than reconcile $XXX that

Craig Gates

quarterly. discussions I the I run is don't as of don't you run Annual a where run you have same flat. Things believe and not Things number don't they flat. know had can't flat.

Bill Dezellem

[indiscernible].

Craig Gates

Did we Bill? lose

Bill Dezellem

flat No, in quick, a to I'm a was easier here run I things just made spreadsheet? it

Craig Gates

Yes.

Bill Dezellem

at this a versus difference really this So the quarterly year is looking fluctuations? full that's

Craig Gates

Yes.

Bill Dezellem

Excellent. All for right. Thank you time. the

Craig Gates

Bill. Thanks

Operator

of next And Grodsky Associates. we'll hear Sheldon from Grodsky

Sheldon Grodsky

you I after demoralizing But a It's what think mentioned before. quarter you quarter. go that heard there. something little Hi I hearing today haven't through

about regulatory like that. might be You fines there or possible something whether some certainly mentioned about something

you on that If what somebody some elaborate off] other can regulator? SEC [pushed or the was at

Craig Gates

been on other comment and no our XX-Qs. have than We XX-Ks in that what's

Brett Larsen

Yes. internal Continuing investigation. to our go through

Sheldon Grodsky

Is that you think? ever going to end do

Craig Gates

say? you Will ever did What end? it

Sheldon Grodsky

end? Is ever it to going

Craig Gates

Sure. Yes.

Sheldon Grodsky

It by like it be seems now. should over

Craig Gates

No, I've who that's the years. these year a They two people a off make by rookie for been situations. all educated to money situation go this as unfortunately, response of to typically

Sheldon Grodsky

an Even goods on income finished or though is or have it impact in that the goods didn't it's of this whether materials. raw process case

go it that. let I'll Okay, with

Craig Gates

Because have I'm not it. Thank opinions to express. you. I strong struggling that appreciate I

Sheldon Grodsky

Okay.

Operator

to will Melas we go of George MKH Management. And next

George Melas

Brett. hi Craig, Hi

Craig Gates

Hey George.

George Melas

investigation record. or? quarter, think do next Congrats [indiscernible]. running [indiscernible] roughly to be question little the Quick for you business score a XXX,XXX it on internal a higher seems

Brett Larsen

actually again forecast have coming this can't legal just Yes, wouldn't going decrease over ramp real professional it's unfortunately we're this up at But down the that that. I and support to go to expecting at expect we're point. over we continue any some those there quarters. point time expecting services will go to time. We're over

George Melas

[indiscernible] roughly $XXX,XXX.

Speaker

is. It

George Melas

mentioned you Craig And shortages. labor great. Okay,

it coming be quarters, nature to somewhat, the in it has quarter of it but eased shortages? seem [indiscernible] think is that they up or mostly last of last had I with [indiscernible] though is U.S. two labor

Craig Gates

in is But Mexico tight it U.S. not as country but tight, horrible. in It's some says if that is don't seen I in Vietnam. in We're before. I've different okay and the recognize as We're China. okay we're Mexico

George Melas

Okay.

Craig Gates

I never been wasn't exit down not be at mean, because would open. I able about I driven to McDonald's [IXX] I've off know don't get you, sure but and

George Melas

And any X to way the Yes. the Maybe quantify like can quite people there's on much guys is exactly think it in there inventory, you way years bring make I not that inventory risk. returned who now customer? participation you that bad ago? have by it Not you is back which is Right. much how the quit workforce of million how [indiscernible] how how the and couple inventory, and of was a add at to sure

Craig Gates

that Georgia it's own on timing. is whole contract It's don't material our industry per we always bring is binding. risk. business in per it's model a Where or either it model business appeal manufacturing into comes risk that the forecast our and the as a purchased contract

able and by were and our we intentionally, are to and be covered a buy something certain cash year, get loan use year, for our buying of able sheet if contracts. then hits everything not our we apart balance businesses tied the our So have stuff up to and else. that we of all may it for that But rest not we a out in for to be

George Melas

Okay.

the pays a that's is certain basically in period where in So time, by then your [indiscernible] of inventory customer process. how after much covered of business

Craig Gates

of were contracts But most written before ever Almost anything all occurred. clauses timing well has in of these like there. this it

this timing operate longer today. in So clauses environment to need we much are than what those

that chain, amendment we're getting guess we're contract that are hold I supply day that we we norm is the our agreements in day build would allowed this for during all essence that that back can't that to the have time says it, invoice and with that that to horribleness dock. been building, in the and parts So of certain state that have we the going sitting instead XXX new to today period of the in customers

George Melas

still it that, inventory? in of but would up, how would inventory inventory much [cash] go so And case, you the own for that the be hold would but would the customer customer, shrink, Okay. your

Craig Gates

Yes. Correct?

George Melas

of And how much happened? that already

Craig Gates

XX What million, probably do million. we got, Yes. XX million, XX

George Melas

Wow.

Craig Gates

world. can't stress going on unbelievable. I in people Again Yes. understand enough what's this It's that don't

George Melas

customer million XX XX that paid million are progress for? So to that actually working you has your

Craig Gates

would they've that four for. us be No, components paid

Brett Larsen

not It's inventory. it's So whip.

George Melas

go Okay, and parts really because product it. all you through went only care to

Brett Larsen

Right.

Craig Gates

had wouldn't on components we all hand. building start until the We

George Melas

And that's ago? a quarter year what or really did last

Brett Larsen

has It the has last to last increased grown substantially it exact expect the it I only year. I the in further. don't grow over And year. have numbers, significantly but

George Melas

so know integrated much because bigger you and you [indiscernible]. mobile you of that, Okay, have, risk vertically have are a I

Craig Gates

by that I our customers are that one say and wouldn't than say in for deals respect than it. unique. numbers of wouldn't that we're any bigger more more our A not risk these our at number are contract are manufacturer I competitors. served

George Melas

Great. Okay.

target On margin, million the think roughly you up? Is that X%. I $XXX go is were that gross but if target will your target that still to do

Craig Gates

would the wouldn't the Yes. That certainly target we would performance would go but target target. up exceed our

George Melas

Okay. [indiscernible].

it think do could you be? what So

Craig Gates

It's target, customers keep analogy stick now The we a that cost is so prices a up is our with that well enough. what's to fast the quick moving it's materials with up right can't of to going raising our happening George. the

raise prices. new you we a to like time imagine everything of proof our feel me oh, to As hell you, send have don't to we can price your done raise do a increase. you to Sure, that we that job mitigate we've have you need customers invoice. with say, price, can Every ahead, go a

because customer still gone becoming take the position we have we have situation every of a the is there's But to face. delayed that with why all argue easier go logistics time. arguments they aware has that say we still are So up Those your go world gone X% X%. in arguments have or getting now and And to price up. up, to are where materials

needs actually which we at price bit faster caught it faith happen. we're abates customers have easily. parts So be. until a to to it But no our our few get move does, up get would in to of through I to bit a moving of bit margin actual a that, in back will to until little target more have where that a our and A back inflation increases squeeze order us

George Melas

Okay. Great.

haven't you do So I've that you never, [indiscernible] to that's had doing something been [indiscernible]. really

Craig Gates

I across situation have we never a the were prices. where seen I've at And been board, continually doing out years. XX for and going succeeding this raising

George Melas

Done.

Craig Gates

And Ever. say, I've well, can't we seen accept stuff you we I've though accepting situation a might a our situation hey, a and years order, never not got if an call never part even seen get if at be ship I non-cancelable, up now. is where through And you, our it where will port. be to seen standard, from order. we say, your we're do And Never orders. they non-returnable. it two that. to decide it

George Melas

Right.

Speaker

that. where if I've parked waiting in you situation pickup never for a trucks Have FXXX a seen are seen ever IC? an lot parking

George Melas

it's Yes. no, boggling. mind Yes,

willing really segmentation You work with your of, are a that customers sort and transaction on you you some of your a see to partner --. sort as

Craig Gates

Sure.

moral As draw have of or knob their may of a between those their business year business. million people each revenue. on line each you are is dashed $XX people cubicle. the circle running will whiteboard put I like and whiteboards, million And managers their I a through may typically these round it. And who customer. in of of And that of a CEOs in not be $XX portion the a we business miniature and run much a program And our these through know,

get a XX customers of Some out XX.

And much those themselves proven customers We verbally those do on proven will to customers. customers. handshake, for faster for because be a trustworthy. they upstanding to be things Things go they've

without We it whatever is are do. We for to agreement them who us they on signed do essentially untrustworthy. that want other customers won't have anything a

and business our flexible. our be So people to have

next they They managers day have that And who to at some he's of as as both hang and the one know on ends long their talk they of talk customers spectrum. and best have know they the guy phone to have trust, trust the the to to our up the can't and will customer program him can friend is. phone

the for answer hurt who least. the there ones knives untrustworthiness. significant have responded And suffered have goes an responded, are this. question ones ones the So and kind the have ones out is the XXs customers you moral in not on The situation ways the your agility differences who the determines who yes, been have because have the their well most in of of agility by how unprecedented is or but have this hampered twos vindictiveness this to

George Melas

Yes. of the say And is there opposed a as what way in customers to category trustworthy are not? proportion your to

Craig Gates

customers. part our our just nice business The me that about Not? minute is here. big I'm thinking give me a

All back and battles see big fought off relationship a of we've staved Yes. category. of so the There for that customers. together, and customers big crisis the have of and over trustworthy lot all one we fall on known our into these known a way customers with gone, for I've a are decade. We've great our all we go

into these the majority our majority are our can most. of these say of and guys, I'd them of but trust guys. smaller Some Majority you the falls are revenue, revenue good not customers the into much, customers of so fall good

George Melas

to that's know. Okay, good

Okay, that's it for much. you me. very Thank

Craig Gates

Thanks. Thanks George.

Operator

Capital. to go follow we'll a with up Bill from And Dezellem Tieton

Bill Dezellem

Thank your just signs provide be please? would will has made you. you quite on all, and some one that Vietnam. I nice detail day you and that, to that behind like for jump meaningful showing comments to more you Would Vietnam elaborate

Craig Gates

know why. We've had don't big of out. I number things a

echo You get -- an

Bill Dezellem

Yes.

Craig Gates

speak? I echo an you getting when Are

Bill Dezellem

mute. makes going you Yes, I I put mute if on put any to that am. difference? I'm See mute sorry. me on

Craig Gates

it. myself speaking, which fix is I'll test. Well, that ignore to Nope, pretty Okay. do. Test, didn't easy

away. went it Now

a lot had hard two was had out, lot seen. into work. before or in nice But national few right customers they've and people Vietnam's And on hit, go a into people response Vietnam, COVID to a of So plant customer and are customer business a never to COVID visits, three very wins. of lockdown willing on interest, put

they seen grow, to with growth, to that factory. that profitable. Vietnamese have or Vietnam's actually managed growth limiter, never So massive they down their but slowed plants inside of to become even managed And the managed that accounts is win they

that it, win they are or to we expect growth. business do going that whatever So they by are should limiters visits overcome and to to a vaccines very rapid return

Bill Dezellem

mode? And still kind that I've are kind in or things. of has reopened heard conflicting country of the lockdown I've they

Craig Gates

very very now shut kind they're I it's or back very, they change down But again. of right a slight uptick man, in if open. They cases, rapidly right think concentration they it see they're reactive

Craig Gates

[indiscernible]. regions It's based on

Bill Dezellem

it that different explains maybe just feel quickly. Okay, very changes why I've things I'm like hearing

now it once increase facility? And business new into business having open, your and prospective or with desire increase putting it that I this facility? interest customers compartment move B, new and does again, guess, that in your, at So does comfort confidence

Craig Gates

the start I ever long enough or desire review is don't interest customer's open been big that the factory. They to haven't seen and trips to people we've enough diminished. think scheduled there

Bill Dezellem

via This a question silly something video. that may but can be done that be review

Craig Gates

to actually that Bill. substitute done been the for and gain appear We've see try doesn't some of any from able But video that. there in We going be all to traction and we've kinds walk arounds, facility.

Bill Dezellem

Right.

want Brett And out. don't then feel Okay. Thank you left you. to I

were to quarter you last do versus you Would down was us it that? SG&A by able how XXX,XXX talk to to relative so. or So about

Brett Larsen

managing new accrued year. the fiscal some couple performance of things. quarter other are compensation we was last One is carefully during of this time the in a there Yes, was is, based that last that and hires

Bill Dezellem

And you the it. logistics chain both. of you all I really out and thank detail appreciate craziness all behind All thank right, there. the supply do for well, the

Craig Gates

bet. You

Operator

additional our [Operator questions no closing And turn queue, Instructions] back I'll the to in any presenters comments. call the with or for other

Craig Gates

forward and again, Brett to next I quarter. look everyone in speaking today's thank to you call. again Okay, conference participating you for

Operator

for today's concludes call. This participation. your Thank you

disconnect. You may now

Key Tronic (KTCC) 3 Nov 212022 Q1 Earnings call transcript