P&F Industries (PFIN) 12 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Richard Goodman	General Counsel
Richard Horowitz	Chairman, President & CEO
Joseph Molino	COO & CFO
Andrew Shapiro	Lawndale Capital Management

Call transcript

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Operator

00:05 Good day, and welcome to the P&F Industries, Inc. Q3 twenty twenty one Earnings Conference Call. Today's conference is being recorded. 00:14 At this time, I'd like to turn the conference over to Mr. Richard Goodman, General Counsel. sir. ahead, go Please

Richard Goodman

company's the Chief Chief operator. twenty Officer and With twenty company's to are President including, you fluctuations future and subject get prices, plans, our expectations, remind requirements, capital Officer. from the other upon and in retail from could debt or XX:XX to, risks of any report you, service the States statements expressed any sourcing Joseph performance unforeseen and the in the inventory changes Industries covenants economy others, on most disruption us Securities uncertainties, outlook compliance to including, management, call or those third abroad to in materially of the statements by uncertainties our the the forward-looking those and and and with periods statements energy including information our Commission, Molino, public credit client acquisition United and on global regulatory started, system the annual and are purchasing management impairment of outbreak and with technology and businesses, XX:XX not Chairman, strength but results other Before like delays, are Form our from Horowitz, related of XX-Q differ Form on in estimates company's I'd described historical to risks quarter and acceptance reports made one assets based Richard Officer; reports debt Chief filings. future Good Thank patterns, XX-K, borrowing and risks COVID-XX Financial and the behalf Operating among related welcome filed market morning, described to today's which and in those by risks our by P&F of current quarterly associated to recent failures performance risks as today customer global attacks, company. products, cause other and importation in Executive forward-looking credit that and XX:XX conference goodwill, actual to under limited for Exchange These various and facility, and company we and exposure discussed and in and call. on the overseas, health concentration, markets, crises, long-lived the of adjustments

Forward-looking a forward-looking which developments over update Good no statements company speak like that, the result as would made, morning, as XX:XX now undertakes to Richard to they and And date to turn new statements, on whether of information, obligation any I Richard. call with revise only or of the otherwise. future the are Horowitz. publicly or

Richard Horowitz

and to not dramatically control much to company's of everyone's sheet I cash past of released We battle are for delays business. conference for otherwise quite some to morning, companies, as release has by twenty. direct chain third exceptions, twenty course, all Thank all caused are well twenty and press which particular, mindful all the is, growth twenty the same time that's single scenarios of morning, very there it's to else one XX:XX twenty trying effects at prayers but have world this was of and affected the have to seat harsh September morning, our so In our current we global much following to in thoughts believe of the how would joining includes to all compare would inventories, PTG time the customers under earlier disruption, permit The supply which release the most flows like country in most our, yet nine thank statements your the this the of that the the Good remind news gears XX:XX quarter And and where fiscal COVID-XX areas questions. to morning, Rich higher XX:XX may three our of are pandemic months better every to see everybody. answered one needed and part, everybody on known of order company's COVID that purpose XX:XX it your doing all very still that this global at Like twenty pandemic. call. effects hampering the business yet this related I one, as major our us of in -- today should with We for we for they attention the or results. in affected mention of potential meetings these are here P&F, ill once been to be be most this the discussions again on-site you prices. periods the within of balance in of here which pandemic. P&F twenty COVID-XX. results have and part, those operations their you use company's where presentations soon for placed both and or of and procedures like the exit statement I the day, this make best twenty hope our thirty, most good XX:XX continue all you hope operations, you now. the

you to session Firstly, restate and from the here related only is XX:XX to and we questions and we already will in company's several speech not that of to answering morning's have insist move must condition. adhere I question-and-answer directly has conference this brief calls my Secondly, have what operations be be release. become practice, standard previous press procedure. done after please our aware, directly the will We results financial and we a

happy with the call. of beyond have. to Operator, any And might for you. that any please get answer Thank questions us. anybody go pertinent this questions be will not scope XX:XX management the questions Our would we be entertaining that,

Operator

from first Shapiro Capital And question XX:XX you. take we'll Lawndale Andrew Absolutely, thank [Operator with our Instructions] Management.

Andrew Shapiro

Hi. Good morning. XX:XX

I into straight subsidiaries of some the won’t you think mind. the if I'll or segments, go

in a continue a or the you trend in decent this influences for and was that was sequential Regarding Jiffy for supports -- small also from it ramp-up amount which rebound things? substantial is this now Florida a QX. only Are began lumpiness trend albeit to there or a order like inside is in QX. that and Aerospace Hy-Tech, a Pneumatic both improved larger that It also seeing Pneumatics of continued, sales aerospace, has quarter QX. orders

Richard Horowitz

to be should to comparing We're don't increase want Andrew, I last -- an kind XX:XX dismal we think actually. I of year, clear. quarter this

Andrew Shapiro

misunderstand the frankly, with -- quarter, I to things was your that's in QX the me. And we're increase, that or are other you QX, reinforcing we're the say hear. handle and I'm the albeit or lumpiness troughed ramp there's something heavily on done comparing I'm that that sequential, but that on was a improving, it things segment, the And holidays this lumpiness have more a somewhat reflecting this increase I'm and view we sales QX quarter exciting, your almost pretty the slow is going in sector, there an are hand would a, for business and great a on in, only orders and current customers, was from quarter business the that Boeing where aerospace from orders No, some some or do kicking Richard, slow trying it's that a ramp. supports and it are was something that and it production, That's ramp-up XX:XX increase to steady, current here? you rebound? be have are you last a slow influencing we're get saying, hand we've have a here or order belief in, and in that from larger has of on and albeit troughed QX. there to stabilized example, Unless we're or quarter from like When -- an small straight

Richard Horowitz

Right. XX:XX

starts now, it MAX would we're sporadic. let Chinese going them, to pieces, is and We're really most think all -- that part. stuff, help us but which very, getting nowhere was told like tremendously. just give that this But it's customers getting they more Boeing is found better the for in the than world other want bits all, we're still sporadic. from the issues Joe, that's insight don't you, don't or stops. then goes anything accept talk be little any if before, to And that on. is much forward, that going XXX we and We what orders still know, first We're I the getting me but color the things really Boeing tell It's Chinese. what supply of to the but Lockheed about as planes don't has is know -- they with about. don't for you forward. not and XXX get to And for comment. it with very ask and the into you we And issue if like it's to I that. add chain course, a So Boeing, of the want it's have few excited it, that.

Joseph Molino

being that has a XX:XX month per produced Spirit, stated publicly is higher which it mean, Boeing is is has the of than I Boeing publicly was. MAX number and big XXX supplier, certainly stated

like I think the of there that we and something now reading a earlier I the twenty, and they're have a fifteen pandemic, looking month. or I think think throughout zero at thirty it or reports, QX was year, like month four read this

were any also but even before obviously, the of really four, month at much that's And I two than have idea. pandemic. inventory way how plus our better like tools at sitting are we a Boeing. don't they really fifty We know think don't So

thirty what in will also lead orders until said be work that, planes inventory having continue big eventually. improvement have. and could where that were. to there they a So But they month And all a from hopefully, through getting is delay orders we a more more

Andrew Shapiro

completed you their before inventory planes off pandemic. order and drop didn't of actually XXX pandemic when of It actually the XX:XX grounded Right. back their backing was they the they lines was began, off which to actually at start production up. dropped And the was scale earlier the had well the -- business because even and with

Richard Horowitz

correct. XX:XX That's

Andrew Shapiro

Okay. a XX:XX previous On call…

Richard Horowitz

We a of publicly have inventory XX:XX tremendous claims. stated they that

planes it's -- I may I it's number, I think the not have over hundred exact believe over I but state. two as they think

Andrew Shapiro

of they're a a XX:XX are month, inventory of ton faster planes. is a they're high also been and amount certain they're replacement terms down producing, using life of provide have and they still thirty wearing They fifteen and mean, That's of you like think, in I But making them. shipping right, your your products I because a legacy than -- your tools a -- have tools them. somewhat arguably your planes month it's using now, They making but planes. lose standing products, that your use or losing have they business,

Richard Horowitz

XX:XX Right.

Andrew Shapiro

all discussed their once that of On new including a present it you've Okay. to the know your previous Boeing design impact XX:XX facilities I that you're to you're suite there's aerospace aerospace, about, full don't again. specialty to if tools, and had into some was serve wrenches you're get call, excited able you Airbus, ready ones. tools both or can some

lines, you -- adapting, talked legacy approving get on but you into to adopting to able been into or was able into your pitch the get to, to meet and and to on these hadn't tools. last weren't Airbus new no and able ecoverse been into about to status either are Airbus. or talk you've call, -- or get able things of think tools, introduce the been the they universe the haven't pitch Boeing focusing being one to to on existing new Boeing area I What and about

Richard Horowitz

before, is slow we there thing XX:XX some Admittedly, now, very Yes. had are were more slow We still still I they're appointment, not same important. there Boeing same go. but is Airbus had very, very, much, are than people some go, and very really but really the believe an the situation. appointments. there

we for early we them, would or say they the week pick we're announced a need just company of most but touch before, Airbus, need hearing selling don't the aspects. all to know engineered could January, mandate or we and an able we other part, need thinking now maybe that we're last feel. to Now about clip, I for touch in the down. the with in I see and that to to we're not I selling but to product, be believe, part matter it's the we are public. they're -- any paper between very, get paper looking people they -- in [indiscernible] general, but week And very see a what -- slowing vaccine, Boeing to people, They that and

slow very, it's Gears.. go So very still.

Andrew Shapiro

XX:XX gears? not you the PTG the side, Yeah. aerospace, And see do that's where so

Richard Horowitz

I Both. said Yes. both. XX:XX

Andrew Shapiro

company? a XX:XX right the for designed introduce developed we'll do you Yes, the ones of in new area. to you Are because of respect new it, you area to other once you open call not to get No, front within ongoing, front of I them major doors product have you in understand. that, that's your on the for burner you And or already focus have these prior had are products that, at are enough that and with said still that the, all -- was calls that's new on development,

Richard Horowitz

a [indiscernible] for of is What you It's want focus, Joe, the XX:XX but do you a always more now. say, major latter to...

Joseph Molino

-- It's of the front regardless of what under I like. continuously, we've people mean, in get we in of to the have get we Yes. need we'd seem development yes, tools front to we XX:XX in can't but way got,

it gotten we've matter -- up. development until our much almost set how all meeting we get it's So doesn't more

Andrew Shapiro

XX:XX market are Like Right. share And getting right? meetings. thing, this meetings, one's No isn't getting right? a others

Joseph Molino

Airbus it's isn't infrequently, know us. I meetings No. XX:XX about it's or not -- taking very yes,

Andrew Shapiro

sorry, XX:XX You cut out, I'm Richard.

Richard Horowitz

if not XX:XX getting I in, we're nobody getting will said, into. else be not

Andrew Shapiro

terms prior of you I've everything also requirements were waiting that for you talked quarters, and else. the assembling XX:XX Okay. on and And asked guidance. information in about vaccination

that employees initiated Do incentives with the first get you you providing products now two on fully financial vaccinated percentage and shot of has or I one an think to considered a initiating entity have mandates? presently the as vaccinated? defense for several have given of the over employees, the workforce an in of your you're And or hundred you're subcontractor estimate subcontractors vaccinated particular, side. authorization or or bonuses government's contracts,

Richard Horowitz

XX:XX ahead. Joe, go

Joseph Molino

related our people We're -- we XX:XX just a We who employees of are government say required, COVID will personnel had in not -- are we extremely know, We don't do interruption. no interruption very I time from we and sell COVID or you what due technically, percentage government. low. the or operations lost so to sell had have not little contractor, we're very, to contractor. what disclose a We've not anything this government little is very to vaccinated. prevention to quarantine

Joseph Molino

believe, Biden that XX:XX the And like Andrew, the just halted a in hour federal saw I on judge, this mandate. news I the last morning.

So I contributing. that certainly very what it's means, don't but know

Andrew Shapiro

Is these and reinitiate up? force, growth. crew that the in to Fair vaccination that meetings there's get and some with But they're meet they European additional right. to get to people engineering for you stated backed going footholds that your All and who order Are also have into out have XX:XX these may go us everyone have with to problems mandates. make or for elsewhere here sales or -- and all enough.

Richard Horowitz

We just Privacy Andrew. what the Act discuss and we discuss are. people's can't It's personal can't XX:XX issue things that,

Joseph Molino

XX:XX status -- It's our is to service was of inhibiting the our vaccination question. employees in not not ability inhibiting customers grow our

Andrew Shapiro

XX:XX cetera. pushback light of towards Okay. vaccination, turnover this or encountering And are et employee non-vaccination, in evolution you

Joseph Molino

XX:XX No.

Andrew Shapiro

you. thank I'll No, but questions. queue, the back I into more XX:XX Good. out have

Richard Horowitz

Okay. XX:XX

Operator

next XX:XX you. Thank [indiscernible] investor. with [Operator from private question Instructions] Your

Unidentified Analyst

Hi. hear Can you XX:XX Hello. Good morning. me?

Richard Horowitz

you. XX:XX Yeah. We hear

Unidentified Analyst

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Richard Horowitz

want you take XX:XX that? do Joe, to

Joseph Molino

look, status NASDAQ. there on comment significant XX:XX Well, on I have yes, listing really we don't our a certainly, are mean,

Now, what we NASDAQ exactly rules. would don't the go know into... I follow

Richard Horowitz

that. Maybe XX:XX call, It's make in that. not disconnect we Joe, this to comment on from and can't

questions? Sorry, any other

Unidentified Analyst

going with mean XX:XX don't this is but don't executive that this be So take I something plan insensitive, up? to comes place I succession Board as any that deal is to it there just in as -- or

Richard Horowitz

you please? Could there. you sorry, off say cut I'm it XX:XX again, got

Unidentified Analyst

deal XX:XX it something as for up? plan Board that succession that with will place comes executives in Is the is any of there or

Richard Horowitz

Board deals XX:XX for years. regularly it The with very several

the yes. question to So your answer is

Unidentified Analyst

you. Okay. XX:XX Thank

Operator

you. [Operator like over We I'd for any no this Thank questions additional at have to closing or to management in time. Instructions] turn back the XX:XX queue remarks. conference the additional

Joseph Molino

I'm XX:XX Andrew I that would some wait Shapiro have for a certain is fairly minute. going probably to questions. more

Richard Horowitz

XX:XX coming Yes. He for and he out a stepped said he moment, be in. back would

So give a him minute. let's

another him minute. Let's give

Operator

ahead. is Please has line Andrew your go Absolutely. XX:XX opened. requeued. Andrew

Andrew Shapiro

business XX:XX before. but Yeah, potential for with Airbus requiring and requeued its we've less Do is I into opportunity P&F getting of business course, that understand the No, hindrance while perhaps pursue existing business and Boeing product the I in winning to an a issue of overseas several pursue you have you have other and questions have technical don't I I'm share and actually new ecoverse. discussed to or selling with what you don't of had business. there if Bombardier already mind. aerospace here. large opportunities to the not is, travel, when

Richard Horowitz

ahead, Go said okay. that, we Joe. XX:XX mean, I

Joseph Molino

XX:XX every aircraft We call in manufacturer the we call essentially world on on. that can

them, got absolutely now Bombardier I couldn't I So know tell of right is on them. list. the on they're what anything, one hit we've if going but with you

solution anybody. not everybody. we're to talk if got And we for speaking tools. precluded So that them, We a sell to from works we've them

Andrew Shapiro

kicked talked third in and then why PTG both understand chance it's had needed, able those And you do the never XX:XX the wondering, with for business. quarter, starting to the pandemic things equipment you know, of were I because current in any, have been what But into your I just some prospective for to some prospective to or new And current has or get resulted into -- to were customers. visits think customers I'm really if on-site removing able about instances for it you that that last some the the you having still on Pennsylvania. more were And call, you part in I done as conduct area? open.

Richard Horowitz

had are list some nobody have, that have and We prospects companies let that say mostly some long of are of pretty keep in we've enough the product, hit prospects move the it's good of and and don't the a really that There XX:XX And but road. we a not a kicking got as ones We've we've in telephonically. very as it us, to, good that I'm have long have -- time. been taking engineered hearing, reasonably to, just it's that and a have. an needle to There a spoken some we well that mean now. had it's we've rate, keep the we've very process. success door. they down on -- Unfortunately very spoken long not going to we as examples I long right list

the don't if everybody mode like saying but at I is were the that's see I were kind think we. Christmas, wait -- people know a first of people the answered some quarter. right of question, and Some saying I end but at your

Andrew Shapiro

this We to XX:XX have start?

Joseph Molino

success add, XX:XX opportunities part it's as We we it's is last And to -- to assuming the now. answer Yes. question, have a we customer. just can a new I'd don't your in right as current we good their if of a front we'd would can customer, those potential we not like the problem. pretty get can't somebody. And rate. I just many have -- say Andrew, have solve of as we this means

Andrew Shapiro

decades your I've new inside okay, this your with good since have -- et business for into you we getting new as customer, this yet make pitch, again, XX:XX hit if you the the segment pandemic, have get of you Okay. a was the have you an and cetera, business I it. chance capabilities of a experience here. own, And the for been investor don't three the don't I focus,

quarter? and the an how that window, it Is stream? you it for time assuming engineered multiple turn I'm reportable a what's because -- give time is have product, then the long window process the the Is into capabilities they to it's you sure order, quarters? Now what's not order the here? how but revenue

Richard Horowitz

varies XX:XX Yes. product, chime the correct? somewhere three it would the varies would in mean and but between is. you it's Is also, that? months, Joe, I can mean, and need I six it that generally Joe, But say on you speaking. what

Joseph Molino

Yes. XX:XX

it long well, three -- on that be depending as -- of six I say iterative. from depends think always time could as I time to I score. is on series the From there's the would months them keeping of very meetings, a you're mean complexity. this when the more and closer it certainly But are months

a to out it. they with talk bit what come them. You maybe make go Maybe you to sample change. We take need their there, analyze you. want in is. more, find you back a a back little We We

complex, less depends three than on more longer probably it it's it's the If the complexity So it that gets. complexity. not but is, there the months

Andrew Shapiro

you problems -- you It's on that you doing experiencing, And in-house dependent stuff, chain dependent Okay. more now this domestic supply back are is XX:XX and supply you're go all obviously, machine ability on to go fulfill their bulk this importation? you're sounds the you it to with is is -- what to extent and your like the more this and -- of and not your order, needs and shop get chains? order, your like your

Richard Horowitz

get don't We do. it If we it depends don't the as you supplies. else. a we've for product don't depends. is. again, on everybody anybody It's issues issue. that depends blanket and past. and fashion, the just think that Well, the we're get We are everywhere, can grind getting on metal what prices really answer, gears, supply mean, metal, affecting XX:XX in It We at it it's I timely a is. not including gears. them to not them all added but saying an our just and we I'm into it chain what I give

a that, I think you we it answer depends honestly on don't because can really -- Andrew, So give on... straight can't I

Andrew Shapiro

into But understand, this I'm line right? micro -- get I'm not to Well, than tools and from different general, not XX:XX container Taiwan, trying a I mean a any detail on the you're of manufacturing importation is sitting particular business in is this the of order. ships. trying of to

your customer, your So hard the of that's metal Is PTG needs meet in to your basically stock basic you're supplies basic right? raw cutting that down that materials, machining.

Richard Horowitz

Yes. XX:XX

Andrew Shapiro

And XX:XX Okay. -- the okay.

So sense, and you not your portion dependent in to automotive the as in that you're as supply tools are business. of other parts other

Okay.

would a Now looking you otherwise might versus they say domestic what chain been that on solution PTG and supply have potentially high-tech dependent are to? your customers to or

Richard Horowitz

answer you He explain better. Joe, XX:XX it Why you it? can that, really. not don't but answer can

Joseph Molino

on me go commenting back for the it's most your question. XX:XX finish all your domestic. to Yes, prior part, Let --

don't However, within Cranberry. four There be treating might treating we have facility. we do some There's Punxsutawney the can't walls is in do we that process required every walls and heat processing. some because a in requires the can't heat outside single on that some can't grinding we tolerances. do four hardening depending There's some

So that's it's in but overseas, not done our building. not

have domestic But in yes, replace that like is there source. that product of down mostly think, not and on supplier material own, I sure Richard slowed be could With imported So has to a respect slow whatever, it to are out potential whether a those companies right their would general, customers extent products. us down occasion. I'm the employees are or that there about, us or -- we're issues importing

certainly, it's it of a business not cases, that or option, on might. depending logical the think viable share that But see is, but what the some we I in potential. where the biggest So it's lion's it's

Andrew Shapiro

and ATP and have customers you offshore that you side a mostly solution potential other dependence. tooling, or stuff's the of oil in Hy-Tech okay? onshore is Hy-Tech or Asia, Hy-Tech side, lot Taiwan again, it's into Florida your On onshore, imported, your Pneumatic, a meaningful Now in XX:XX to the that whether gas, supply in of things. elsewhere tools Hy-Tech the -- a amount a are or

Richard Horowitz

Joe. ahead, XX:XX Go

Joseph Molino

who XX:XX it sure. question saying? can can you're we you I'm the Is side, same the replace another on what of not is the saying Are asked? Is that we Hy-Tech place vendor take importing? you --

Andrew Shapiro

I -- mean Hy-Tech, decent at a manufacturing XX:XX Are has Pneumatic of Florida less you exactly. where importation. it's Yes. but amount engineered, your

let's more say, Pneumatic I than, think Hy-Tech's manufacturing Florida is.

And so that people case, they in you solution, where do is if onshoring, want onshoring Hy-Tech. more from might be the to come are who again, there that an to sense, of would

Joseph Molino

no, to the I the tools general. are heavy. most very import highly heavy part, For something The because expensive are XX:XX -- well. That's quantities, quantities They're small. Hy-Tech small It's They that very duty ship in don't engineered. don't...

Andrew Shapiro

onshore competition saying? your is XX:XX So is you're already what

Joseph Molino

our XX:XX I everywhere. -- would as but internet those part, because... Asian some see we're competition say But for don't the against Certainly, competing necessarily most but tools. not made we

Andrew Shapiro

or getting raw to more manufacturing, that's mostly, XX:XX domestic -- of down for And your doing you're basic the supply in your chain supply metal again, the Hy-Tech material? where side, the

Joseph Molino

part, for XX:XX Yes, sure. most the

Andrew Shapiro

Okay. XX:XX

of to industry have address the rest has and come the Now more and you could side of everything that difficulties do Florida tool some offshore opportunities or to that Pneumatic the chain on is or of you the automotive supply your on any onshore on what from have -- going one? alleviate

Richard Horowitz

ahead, the Joe. For part. greatest XX:XX Go

Joseph Molino

in aerospace, not remember, Well, it's XX:XX mostly offshore.

don't but... As you know, know or maybe

Andrew Shapiro

XX:XX No, I'm I impressed. know of the Jiffy. very

Joseph Molino

XX:XX Yes.

So Pneumatic, think don't get the I we just the Florida there. U.S. can manufacturing, rest,

of for relatively -- great low not we with or It's still but volume, could high it's numbers. a it's America? there some don't possible. entry those just Now not really tools, compete in know, North -- part maybe, thought it's really just can't level I other get we but

Andrew Shapiro

the side, feel or XX:XX shelves -- Okay. gaining at others it's in in that have at of And just some unless your the that barren shelves and space competitors and shelf do sales are so similarly you is decline and your Depot barren share? situated, resulting Home been distributors

Joseph Molino

XX:XX Yes.

in my We This XXXX inventory inventory. of enough think but who There's people is the at channel one. think I want I a channel. there's lot don't think gained. nobody's opinion. enough there's AIRCAT aren't getting

don't of I I To don't Home a they bare at problem shelves one anything any And getting think heard I one. if think my So anybody AIRCAT tools Depot. haven't that. want our is having knowledge, there's about

Andrew Shapiro

the know XX:XX So the sales our side. then levels why I sales that's in supply somewhat and case, if chain cost revenue cited, would on down the be side...

Joseph Molino

XX:XX directly channel there's Remember, anyone, we're inventory. not selling this all So right? to

are distributors. Our the channel customers

Andrew Shapiro

distributors XX:XX some it right? means exceeding are supply and but product, in that those this supply. There's it's So there's channel channel either -- And not. distributors issues, or for those demand demand chain if is --

you're And around supply but appreciate fear selling the to that distributors be So wouldn't fear the not mongering from means why inventory short. and ordering in caught face why they're selling not I product. their refill That the so that chain the the you arguably have distributors would or supply. necessarily turning they're everywhere, it. of

Joseph Molino

XX:XX Okay.

you clear. be Are Home let's talking AIRCAT Jiffy? industry? you talking about Are Which about about one? of talking Depot? So you Are

Andrew Shapiro

or exist that just the -- the units. seem the regarding distributors okay? clearing selling questioning to distribution in is selling the distributors of XX:XX are model instances you're doesn't to I'm are on referring issue second, you exist? the supply idea that line how We'll into where the So referring have the would impinged cited that to a in chain customer. -- consumer where the issues my does not cost get to, -- That out

Joseph Molino

answered best XX:XX I in is the question think pieces.

In of twenty, pent-up orders suddenly all second, let's didn't shut was on, there Home turned tremendous our at at spray down. There a being for reasons. when Depot Home quarter and this, used Depot. business. third know home things when was two got we things twenty the disinfectant. One, And surge in at from was spray look So to demand the in retail surge guns a sorts were QX huge or of depot there QX the were

So that has leveled off.

talking Depot, situation. Home a I about think at you're So unique

off that one take let's So the table.

we've already So Jiffy, talked about.

leaves automotive. I industrial prior an that me, improvement us don't So front with and Industrial, I industrial has but have had from the think in of quarter.

Andrew Shapiro

It has. XX:XX Yes,

Joseph Molino

not XX:XX about So you're asking industrial.

asking to okay. down you're about All really, automotive. So right,

So let's automotive. talk about

Andrew Shapiro

Home Amazon, that's retail all Depot. primarily just, automotive Is retail? into understand way, We that XX:XX that? the fit Where or of because by

Joseph Molino

Amazon. not -- on automotive. is That's XX:XX I we're we considered do and not Amazon again, the -- sell mean,

but gets Amazon, distribution, it there on Our various product through ends up distribution. being sold

quarter, So percent. the down ten on about side automotive we for were the

on. say, So delays going in Actually, on we've tremendous I'd One, multiple things things two had major these there. importation. going

it if some we've some want to way side, the quarter, getting XX:XX overseas. change in-house had third even during some up. from on go made the we into the we automotive distribution things And the vendors trouble products, second, and changes So channel

there levels the had channel. that, the demand of in into customer from a impact in inventory amount onetime remember, in But So very my has was selling an again, the the XXXX opinion, wanting individual inventory tools. little reduction lot the whatever there's and an there's of want disrupted. been or has people AIRCAT lots in a they channel, AIRCAT of but But channel

regular on it can distribution, -- internet an to if So a it on can't be I through in find it I Amazon. able I able I site it be from my find find might on -- to might distributor. find

So multiple person places can there get a tool. are a

our importation distribution -- I problem So excuse channel -- absorbed me, in the problems. that has our inventory again,

question, So answers what... your I know but don't that if is that

Richard Horowitz

couple here not a this drill this a And our if got call. Andrew, we're due of into in you I've forty is down into all don't respect, micromanaging the minutes mind, XX:XX more business.

I asking questions the if you're talk The we questions, So results. could you and about are appreciate... appreciate would good certainly really

Andrew Shapiro

-- the Joe you and I because there's results, impatient are guys extent how the about finally to it, do an has the you're not you helped about just cite XX:XX problem. especially clarify. these not my supply understand and talk Richard, not I meat questions not it's inconsistency chains, it's that mean, of

Richard Horowitz

not XX:XX I'm not impatient. to... going Andrew, I'm

Andrew Shapiro

others there's have questions. XX:XX If who

Richard Horowitz

XX:XX as we're to talk to comes the quarter, talk each this much happy time going there to to really it's you down honestly, things. about that answer I'm a do do I understand sense. not need call -- you little other. answer I'm to I'm asking point and happy I'm happy not to over germane. to global too you're respectfully that you but and to conference to going it mean asking a as is want drilling to questions. your a That's just I'm keep it. spend tell answer that to we really but try a happy to far, the We're what more We're them. and in

please time and that's a but you entitled be a you're all... everybody else just try for stockholder well a as You're can. global, answers to And if the more to long and little

Andrew Shapiro

and like explain members be is and -- you down But it glad and to to sure I'm let out. Well, particular this get if then in chat other is someone there someone move get and drill little my you we'll someone hope who on if you I with I'll germane. maybe would But But ask to be glad ask surely else are and question. have can to of some clearly, to questions, how a and Board, else ask XX:XX I'll offline the questions. out very, Joe wants on exactly even why very questioning, the

Richard Horowitz

XX:XX queue. We in have the someone

Andrew Shapiro

I Good. Thanks. have XX:XX other questions.

Operator

XX:XX Thank you.

take our investor. follow-up question private We next [indiscernible], will from from another

Unidentified Analyst

on mentioned last a talk any dividend. XX:XX give the it about Hi. I'm was resuming a and/or that? curious, during buyback Can update call, briefly you

Richard Horowitz

meeting nothing XX:XX on in Yes. every forefront meeting right you And say meetings. can't What all read as we between it. We'll is every to the now. at announcing it. committee you'll -- so The cetera. the et our discuss about et the be tell meetings, can in that agenda It's when we -- of board more audit and report, update well there's between it is I there's cetera, as I that Board we board will world. discuss something at to it to

more something we So a it's talk there's fashion, you. newsworthy will that that about, definitely actually and to talk be we about when to in quoting something

Unidentified Analyst

Okay. XX:XX

for any to flow, news balance can for I'm waiting give thought is up into like it you Are So -- goes consideration? -- right wondering I'm for share you not now. that? sheet? cash what stronger a better like What just asking you that that really about

Richard Horowitz

XX:XX And financial about we we answer condition, it We declaration, of about requirements as of dividends, these now, can when declared do. operations, as results cash -- the capital is the when And be things of yet. Yes. what examined time depends really to will the factors those when all be anything the talk continue said, we other questions. needs think at will Well, and that of talk and questions, we -- the we all I the on about that But business, have may about. relevant that's promise point. that there's dividend I The haven't to that business. all any cash comes. analyze and the that company's if flow talk we we'll something that announcing the yes on it the

Unidentified Analyst

Can Thank one I more add question? you. Okay. XX:XX

Richard Horowitz

XX:XX please. Sure,

Unidentified Analyst

very on hands is XX:XX it to into to seems not could don't And take it its Amazon. grow a to company Depot this that me Home you or on Why curious like the a high-level directly choose is -- consumers? And you question. site have just to strong presence that revenue. I'm sell its like like something own

Richard Horowitz

XX:XX one? answer Joe, to do you that want

Joseph Molino

XX:XX They store. Yes, like. customer. Depot Depot, let to if the market respect dictate Depot, what the that. can to versus the of up me Home way is end we site Home address Home Home in on a they'd to go not our Depot do in With any any choose what's tools

that to Amazon, respect So go many get our nothing buy on why one can buying on of one mobile them to other we of Amazon, of don't that. through truck them buy don't to -- directly our to pick we've them necessarily multiple for to they means. tools. through another to do we choose buy there's to to And website, while customers it's to got and want choose don't Amazon, of great many we to that With sell some and a but favorites choose about local choose ways of

a directly, So for to Amazon sure not if that Having were rest Amazon. that, disagree we no we repercussions I of bet with on but action I most would best revenue. the advertising do on channel we Amazon. I'm to think for there that. just go And necessarily are And decided that's the be presence We have making going would of would in said course the the that Amazon. we be

of market. I that I But a means I there. It's the good done think way channel job no with guess our we've that and no tools. would selling only have means to disagree that go very we we by presence

have of In most one highly the the fact, in on tools category I Amazon. think rated we

So hopefully answers. that

Unidentified Analyst

apologize. I questioning suggest was of have you I that no I presence. just the direct lack marketing. XX:XX didn't

Joseph Molino

don't lend view, for themselves of Depot, and although tools really marketed don't lend of to They level themselves but the customer. some and a in lend us the the tools, the a extent, themselves them distribution Amazon direct our require of there are, don't gears to direct tools industrial direct Well, the my sale, between to XX:XX for in tools marketing, Home marketing. marketing. The more engineered directly, an and Depot lesser is

Unidentified Analyst

All XX:XX right. Thank you.

Joseph Molino

welcome. You’re XX:XX

Operator

again from Shapiro Management. with Capital XX:XX Lawndale Thank you. We hear Andrew

Andrew Shapiro

would with. competitors and share. and reflect issues XX:XX not that all of are that the faced is more cost through on can losing the give I pace inevitably cetera, -- passing color Thanks. and the chain comment Carrying over the also is increases if supply What experiencing freight, believe et your price you the the cost case, everyone on side, of increases that you're is the same shipping, issues, on

Richard Horowitz

given customer several are looking of look our it as has still customers, we been recently inflationary, I'll but our you and the if -- was in actually, part, last for Andrew, over to asking because very this press I continuing you're it, last smallest let asking. what please XX:XX is If increases think customer our month, biggest related I We insanely been prices is, know. months the what be and think, and all you're not, to release, -- very, most have price what we're me the restate know.

to -- to I at see again continuing of a the getting do price again. time And it it don't. need we're now looking Everybody increases so has it at been we it we're we moving was it's target. And if kind was. what think

this we're point. covered at pretty think I

stuff, are you're that further But up is me? into that asking margins what all Our and looking but holding that. we're

Andrew Shapiro

And Yes. they've XX:XX absorbed units. customers you're the -- selling it, accepted have reluctantly your

Richard Horowitz

Morocco the know lives doesn't ports wrong the the on President thirty what way get things, may -- but think this years If is and control not I Everybody there's I is on if hear and the read Bloomberg. mean our in I can and understands and now other now. inflation And all unfortunately, nobody there highest And I for what's be morning Yes. it. last -- this like it sure that read I that the and of XX:XX the who in to -- world It's on the stuff the see month. have they right venue. pretty going a everybody and we too. I'm morning,

Andrew Shapiro

includes was month to and but increases, The other XX:XX goes it and the back the price -- yes. energy highest print it the nineties, one

Richard Horowitz

XX:XX Right.

Andrew Shapiro

the What's on and the quarter, about the in information you didn't talked last the status expect and you tax in you you size that I on QX? as size refunds, the guys a have handle guess, and have but this -- return, XX:XX yet of of do

Richard Horowitz

XX:XX Joe, I'm can about not this. sure if we talk

Joseph Molino

unclear what exactly return. get mean I'm exactly we're expect everybody we're There when not telling XX:XX what a will -- we be, to point. But to have at a get back, it's it's refund going and our hoping I the advisers filed refund same given tax doing of but are go -- Yes. we some certainly get a that thing, some is coming. into to but refund we're our refund sort. us honestly, that it's

Andrew Shapiro

meaningful? it Is XX:XX

Joseph Molino

XX:XX filings, refund. our -- what but expect in a remember certainly Yes. I don't we said It's we

Richard Horowitz

it what is understand, I to to I amount can't Any [Multiple But that. understand to and say is to. to comes we again, well, you. know public I information, not how meaningful. you. you divulge meaningful don't -- else XX:XX don't but it have it's really Speakers]

Andrew Shapiro

here's all, of call. First XX:XX public your

going right? cash accrued a for, of going just flow. be I ask, was to it's been Secondly, matter It's already to

Joseph Molino

of Actually, a receipt XX:XX a accrue potential refund. don't. We you for don't

Andrew Shapiro

pretax provisions pretax you into. your GAAP XX:XX GAAP no, -- your take Okay. It's -- losses, taking when take you provisions, been your against when you've but

Joseph Molino

Yes. XX:XX

Andrew Shapiro

XX:XX Yes, okay.

and You have it. then deferred your tax you thing get

item. So a it's cash going item to to as reported be what it's with here as is we're much flow going not GAAP dealing a be

Joseph Molino

really say know I know but we're something getting, Andrew, don't to mean, what we'll yet. we XX:XX have Yes. about we once it,

Andrew Shapiro

cordless more on And Okay. development can or for Can a quarter. update which P&F either XX:XX automotive in provide its last you talked it and tools Hy-Tech bit of about the and you nonautomotive some or is models applications Pneumatic color of your cordless models type the provide -- Florida you of developing side? an

Joseph Molino

talk where some want on they're we XX:XX to when cordless even about about much where too uncomfortable there saying at selling -- for tools plan point, I'm and we'll underdeveloped go, them. I some are can't niches But even got don't divulge Yes. models. still certain ready I strategic we've can't to alongside There's product them I to underdevelopment, but non-core development reasons, for sit -- strategic reasons. our

Andrew Shapiro

prospective be XX:XX Okay. range introduced? in is in And might time products that is -- which which a the there range time prospective

Joseph Molino

hoping first half I'm say would that year, introduce next of I something. XX:XX we'll the in

Andrew Shapiro

Okay. XX:XX

side at had any or solutions experience in elaboration? OEM out areas call industries and worthy particular Engineered products far, new if you and so Can there's sizable the you discuss products Hy-Tech. Now of gains a and your

Joseph Molino

XX:XX I it's mean place. the really over all

anyone call I don't I As we've said, would know out.

to been that customers. I it's visit. able have of Those think obviously rebound. just are current bit for the that Some opposed a part, think cases I is where we most And a new to rebounding as customers are

both. the believe customers, it's were And growth this maybe although to old best So well, probably we're some of I what's who new just of as is struggling doing that's of more implied, is sort think better. think, going I case on, given I that customers fact the in meet source

Andrew Shapiro

my question, the what's going the after always the the function you of it still a not And issuing shares to outstanding on which guys and XX:XX call, before have is we that's XX-Q fact, cover? be that is last

Joseph Molino

the you XX:XX if I the question... to that, answer on know but right. All don't have it

Andrew Shapiro

into XX:XX and future And scripts? perhaps future that -- can your your you into perhaps you build can build that

Joseph Molino

number The of stuck just in me... front of outstanding, shares XX:XX somebody

Andrew Shapiro

one... million Three XX:XX

Joseph Molino

think eighty Three point don't one Andrew. much, it's hundred dollars, I changed XX:XX one and

Andrew Shapiro

change. no you. Thank standard, That's good. unchanged. Very that's No, XX:XX

Joseph Molino

XX:XX You’re welcome.

Richard Horowitz

time. you, Andrew. you XX:XX I’ll Thank see

Operator

[indiscernible] private our question with XX:XX Thank from We'll you. take next investor.

Unidentified Analyst

XX:XX Yes. Hi, everybody.

First, thank you.

have don't I think branch the job in bill. excellent for think my special You're them? company will you with or infrastructure industrial the job. a everything benefit, let any I tools. question just cannot in future If doing to on see question? construction you I because go the an the That’s just Do going

Richard Horowitz

understand don't -- question. did I XX:XX the you

Joseph Molino

bill. XX:XX the bridge construction, mill is all Yes, part a bill? construction, benefit construction. repair, road sold maintenance I and I of and railroad into to from tools construction, infrastructure lot of maintenance understand are we think Those the the question. Will yes. wind I bridge answer infrastructure Historically, we have the that think

So while they're sold those some that pretty going in in activities point we've to anything with I'm because we're the to tools I comfortable couldn't very of past. specifically. share consistent where

Unidentified Analyst

much. so job And you. you guys. you great Thank Thank XX:XX did

Joseph Molino

XX:XX Thank you.

Richard Horowitz

XX:XX Thank you.

Operator

the I'll conclude conference queue or this XX:XX over remarks. time. additional questions turn Thank you. closing the does the to management in And back at for that

Richard Horowitz

for today. in gave speaking forward XX:XX all the more to beforehand. March. we Okay. with with Nothing other had you all taking I further And our Hope to that's say believe Thank you thank than time questions. you insight than you year-end look you we for your call.

stay happy safe So well, everybody. holidays, and stay

Operator

conference. does thank XX:XX your conclude We today's all and and Thank now for participation, you you disconnect. that may you

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