PKE - Earnings call transcript Q3 2022

I QX Thank Welcome you, Farabaugh, conference our our usual, all. Brian. me, call. investor Happy New CFO. always, operator. Year. Welcome Matt This as have with is as to

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times essential go let's component important the programs in up were it's during million of thing. in sales, couple the which here, will It were QX. a is missile expected occurred of QX, $X.X presentation. This to so come of an but a a slide big it's bottom or but. but, the So There

call, we'll Now you of that anonymous be later. said when just we about announced been now, deal QX. can did Ariane to what our we expected. a We in product going CXB. We Until now yesterday we but product, talk QX it's that's about an with told this. and That's this we kind call

call we proprietary rocket of specialized for fabric and now blade to programs. that's a by missile CXB. very this a So products produce It's used product us

this product So missile it into took our sale, doing. program call, CXB is than Remember sales works. But But for saying component place anyway, a rather OEMs. how sale shorthand, call bit not anyway, really we later. little essential by of component essential is a the this the wasn't get we'll driven kind QX, let's QX. mouthful. That just in whatever This

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to the from us sorry, them, from ask product – they go from So Ariane. buy

when We our markup to for have that with we that. – a and it just they and sell do we own hold relationship although our it's in And this do product It's customer, then they're Ariane. it. them. factory a CXB we involved We there's

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our news those plan we materials to is news and good that margin. ablative use product, a those lot there is that of the materials produce here ultimately, materials good high when and very is we with Now sell

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So everything of little out of that kind here throws a whack bit.

QX, sales let's let's like say the getting be that supposed that in it's that was just to would of million million million. more $XX.X without CXB QX let's subtract here, for $XX.X It of but So perspective That anyway. $X.X kind some $XX.X million. sale, think of just about that purpose

$XX.X of Now what compared the end we to range. to million below predicting, $XX.X million were $XX $X.X bottom well, million that's the million,

going understanding based good So and upon on these is considering start circumstances what's say, to pretty is top line. now that you that geez, Actually, the good you pretty EBITDA here. see it

have to a you. our on had sales, sales. we a long that CXB well, over – when quarter, this it have good in with So, owned works. that's maybe would It's interesting of worth little for supply the Well, that there's ablative take we'll It's our because let is that's money produce their good just of good those us, our the And the me to being systems, owned a resin here. Park kind very They factory. see interesting what tell our where else point in currently I that's time. have We how us. I margins material. and it million product – a do the plan proprietary customer. end that means up But won't lot this of not ablative be not And because product secure coming. because by that's CXB are next sales customers by that for want ultimately, $X bank

QX which And I affected two Slide are Why to don't that X? covers So, there other think that. not margins we sales factors just see on move and things.

daily perspective, challenges when and but We that. So, currently spoke we see worse in chain QX exactly, did announced let's they talk our from than when but about actually, we they about are worse were this QX. this battle. Supply we coming didn't QX,

don't articles, getting So, Journal, that's reports when not know about Street sure. newspaper They're world, this, in. people the in say they're our your it's Wall for world I better,

Our international issues, expedited getting domestic challenges, chain And costs shipments, world shipments, shipments. supply additional is sourcing freight not materials, freight better. for raw difficulty under

in product difficulty that raw we We to and because Either the ship the these didn't or raw product by first of get them have ship and $XXX,XXX So couldn't we domestically three items, bullet sourcing materials look end we at of materials. of produce to altogether, the the QX the get the someone internationally sales couldn't things. quarter.

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number those think. together, you compute you We is, it’s three exactly So, number. take not But That's But like or hard more a to useful, that give information can the we're that what $XXX,XXX that. bit That's like little is a the something all actually breakdown. number. going know we we $XXX,XXX. things

line. the top $XXX,XXX? the in gap of to left. that's it, the million industry $X.X a is there's happened Supply aerospace said impacting other a let's I still of that. remember What lot it? So, generally. $XXX,XXX happened chain about to issues talk What There rest Now but

that does mean? means not only supply chain. our not This is one. we're what It the So,

other that good, really that you want. need time, stuff you know, are I whole components a got OEM, industry, nice. if get people are getting this. is stuff, the them. aren't that's either. the I are with the puts are me they as we But everybody we Park, drag get probably struggling on can really As on if suppliers Well, far brakes, That other you can't And the what an from they because they aerospace whole getting XX industry

kind making or missiles, all the it So, I point drag whole can't of extra raw the the industry. these of on materials? puts a what's get airplanes if So, whatever,

we're as our item, very Can't the know, about just talking this really line, which as we're palpable could it's Now to It's but far there. compute we top not compute. hard concerned. $XXX,XXX,

So, plant equipment and online item, and the bringing costs another associated new trials. with efforts

as these hitting directly, minimal the As far are costs. P&L

effort, as say. far major I concerned, major, effort should the As is

into two industry important one defense supply right chain next and improving items impacting the explain why is delays So, market budget. issues really is are in now to aerospace soft our item. Those plan exception. me another which The the GE with of will This QX. according be than way. is GE programs. This is to is GE. other the probably and all nothing by soft to do going just That's GE, one

So, it than going to is – of going to a for us, military. be largely lot is other be GE

has their I affected that, the the military this of they of budgets defense didn't So, lot, make a about morning saw budgets. – the company of and in you’ll a yes, the from industry. they large hear lot, approval approving a because announcing just defense a a really numbers report how defense lot earnings delay lack

but a signed guess, into budget I the And don't well, law understand this was, Defense approved. big But stuff that's very Bill. on know was because That's I recently the then December Washington money. the signed was XX. of So, that I called that's means one spending That that Bill. else Appropriations actual Defensive is stuff. Authorization there's guess the not yet. authorizing something

lots So, limbo, this in and reporting defense has the this. seen left of about and lots I've industry

not it's So, just certainly perspective. our

So let sorry here, see else. me looking just I'm at that. my what notes about

industry I hold, defense then get hopefully, kind maybe signed, the guess positive. I So, I to the business. some on Authorization Bill still saying, what defense – some hope the of as waiting that the the will people But been the happens. to fact of be to think, Right OEMs that's now, done has are are signed programs and are back well, a see will that be need appropriations sorry, industry bill well. now I

Bill. little in good Authorization So, that we'll get a on news later. to one, presentation. talk later the that actually the We'll There's about

to inflation. go Slide Let's X,

are is thing. you long has physics. consumers, passed same anyway on sorry, talking lot we businesses, utilities, we business raw pretty question, lot to quote Everything, costs how hear their it's There are we the But be about a increased mean. supplies I you a customers? requote talking in pass Whether long? Because about think, the on it's inflation costs these these mind do to of materials, could much when my be And freight, a just our – days. We customers, everything. always I businesses to Okay, almost about big how limit.

limit far how you and are been day, can usually the things, push you is, would of nobody it's You like it? and paying a sometimes it's they is severe – and pushing where don't me far And knows, stops. in it. that say these pushing. know past We've one how event. to smarter this keep anymore, often problem going that's not these of A anyway, not everything with happen We're push And it, had the that pushing, we a than kind lot can time. people prices it's

know. don't they right, are maybe So I

not our think not of think know know about should are it's a these list with, our – that to these darn think these things you would these I difficulties, circumstances we and We're excuses would apologizing excuses. how you of we Actually, excuses. under not quarter. not hope We were. Now I struggling though, to the – pretty want we not clear, These people factors are for good think we're about. did difficult things we're job want kinds

just I think explain. you but it's to just this, a worth – maybe know taking second

us, For only line, that top It quarter-to-quarter we have quarter-to-quarter impact top short-term. is can way. the limited there work a doesn't line really on

more couple you more get I'm some missiles because we that's AXXXs could – or because little a AXXXs look, being top a how I quarter make, the make many the AXXX this illustrative program? a Airbus kind Could we tell CEO a some obviously, more couple top mean, short of Airbus line can't but of some want call situation. our line can't and to order that's on say, to missile or produce So of of I the AXXXs quarter. airline, couple facetious, a you call this you we're order up, little Can our ridiculous,

of lot So quarter, reason tough. really can't working fact really Washington looking is bunker We the order be but mess world, things chain real industry own And can't that. we're the key. we important. opportunities why we the of control new next keep course. to in hard that's ourselves guess, need industry, tell not the bunker that for then not opportunities business control. we developing every do sure All industry. that's the are is And defense go somewhere, on and have see the running quarter defense We run maybe seemed to program We We into because don't reasons. things may can't our business dumps the to What can't working hide quarter-to-quarter produce Those hard the we use OEMs stuff. new top develop control do mode. keep our supply to a stuff, all I can't down not then We is There there's wait tight, – mean, the because pushing in when are going things I approved and – a really and are prerogative, OEM issues. we tight, they hard which that. until can hasn't budget. kind their other again it's really for us, when the little control and real bad. really really We're missiles. to going because to We going make control their of the affect to had really letting whole a to to order that's more mode, hard about we that our opportunities and line get certain really

from problem whatever. in is later. We'll reverse bunker. The a never from that reality we'll talk bunker, people the about So emerge

and way go Why we is going Okay. cover. annual X. keep – to just we got don't long lot because stuff. sorry, to a Slide Page This here

million to Just of million $XX.X it $XX.X on perspective, but XXXX $XX.X fiscal and Slide to the to forecast $XX put see sales for million in year, EBITDA the XX, million. you'll

compared fiscal interesting, year that But interesting. get XXXX. We it's XXXX XXXX the number seems line all months like we of was fiscal back XXXX, there the that months first nine around top same to $XX compared but fiscal EBITDA get looking that to compared is $XX to million. top – terms see to it at to XXXX nine line. probably Also So first the in million EBITDA the for in you and about

maybe something, products So that is a better, probably that developing means means better, product and margin, are introducing maybe our margins we're our higher at mix maybe.

keep here. moving try go to Let's Slide to X, on

as sale of cover quarter, for sale QX. I'm interesting skim QX. we over sheet $XXX a occurred dividend in cash, cash distorted to cash So – the of CXB We arrow we'll pretty But the didn't because get our that second until last it of this million item, in sale CXB There's try cash sorry, the paid till kind quickly. because month, history. rushing, of this kind balance well every we had

So the end payment, items. of those invoicing and the two the QX straddled

little that sale So really item, million QX. dollars spend But you because QX. a and and in a might that much do of number transition to we way, couple any payments. you could The to occurred a item how the payment is the that event, that occur subtract in $XXX didn't million short of special by take math expansion installment you tax and big want in on until have

a the have page, discussion You'd history, the the we our maybe million of about checked just say, in beginning bottom $XX conceptually conceptual the item, to cash million. since of anyway, yes, That's we At kind $XXX analysis. last go dividends cash dividend XXXX. of

lot I that's small a So comment, normally company money Park. like for of a

cover I Let should first checked just that. item. do the me

others or do a we While regular canceling during were dividend we their the of economic their pandemic, the throughout. not dividends crisis maintained did crisis, that, cutting dividends

Slide that five Let's top customers. do next is X go every to on We the our quarter. item.

the get them. we Aerospace, Aeromatrix, GKN, SM-X and left Kratos is bottom AAE Middle too not hung XXX-X Nacelles Sikorsky the program. because that's Let's with River, you you're the the is Helicopter them Engine of that's familiar this. at multiple obviously Missile. the Raytheon names the up on MRAS, do Most see quarter-after-quarter, programs Valkyrie with program.

have. here only it's this yes, the to bottom is chart. Yes, we Slide little perspective, the keep pie me moving you the – not XX, right, give a a let's at well, quarter, think And year-to-date. say, to interesting I look So here. thing

So $X.X too $XX.X at about of except back was just the touches million look not the $X.X the million million to of military revenue That’s XX%, CXB. QX, and part the military, bad pie military. chart. That’s

we but in $X.X that’s only will it’s the not history, low just wise. a out percentage-wise number, in pretty million. be low at Look expecting million, So QX, that but a QX, back to $X.X it weren’t pretty That’s absolute number.

market. it going with goes the to on what’s again, back So discussion,

That’s getting market we think that itself is We’re all. lost any business, at any all. quite market new the opportunities, sure, programs. believe quite we It’s not we’re driver a the That’s sure, end story the story haven’t share. We at not here.

to be we on Again, we our go niche the that’s rocketry. kind is And entertainment blade Standard materials, JSTARS, The considered would kind of materials. with Let’s aerospace that’s That Slide just just material. term, for to that’s And I programs. fun almost XX XX, of missile. the that share let’s The it with call a don’t military be blade that’s this do MAC fun MAC programs purposes, make kind for fast. parts also Missile XX we you. of fast. technical a ESSM, know our to fact, X, that

delays So budget also chain, actually military choppy we about military of nature and before. supply the affected by talking were

just do okay. aerospace -- love footnote still for That’s this Slide and quarter, the We indication Some be. That’s going how to they of this Over There’s programs be be next active will they won’t down. bottom. programs. active the will our they important program the and be. military us anyway, military business won’t XX, next month or is. month an up quarter, an

way it’s all So what quarters. Slide to the here, And the quarter every last several do cover to things going this of the for is we XX XX. Slide we’re one

We’re over this. going skip to

industry, a talked to is whipsaw each the we in going it’s industry, not times. it especially predicament as got The effect discussion just the through to how I’ll into many commercial now. about aerospace We’re item. say aerospace this go

that think slides lay we in I pretty clearly to try themselves. it out the

mentality. little I why did. else the dividend. I’m didn’t off. industry didn’t think of of have At we This We two spending end didn’t the engineering of if on our point of -- us don’t laid The do end let not anybody course, group not Armageddon of know is didn’t is stuff. kind skip terms, stop right So at don’t know. died, people. Park, of out that we but days you never of that and let exaggerating. didn’t Park. We everybody slides, And but into do over it We expansion what our the just I our mode, if budget. questions, They this We is never know any bought that terms we’re we We stuff. this cut not just We got go those our time. any

not got is to run right industry. You are company, But of into I of was probably it, and least history the of we kind rest of decisions. rest make prove a world the the mentality, you Armageddon will the have think which most the At that aerospace that world right.

Okay.

you for pat So didn’t we me could but later just way. I that, that that on go mention back the wanted to

to we This is Slide another XX. go topic cover quarter. Let’s every

aviation is I’m So commercial we’ll yes, saying over about to Commercial, International translates domestic domestic kind commercial, that, is this. than international quickly aviation. wide-body. to translates This more of talking recovering single-aisle. basically and skip

just always, we at is where So single-aisle for now, for now, but for now, not for think okay. it’s

this a it’s for not some Aviation kind River to left, of but Engineering. of new firm give that’s jet -- XX. on done because engine context for people perspective. Systems, the it’s slide you top move ST programs, we good call The pricing quarter subsidiary stuff, item, Let’s know Aerostructure through with top MRAS, every LTA it’s Slide Maybe GE before. I Middle haven’t XXXX

to ST are Let the GE at GE look time, programs ago. of was know. sold subsidiary couple why a years history the me a is in programs. a those who This Engineering Aviation Singapore of stop GE long, don’t legacy long, of But for for until here Aviation you a sub long you all

Factory. as we as soon that. a Redundant We we did factory, you LTA, look, redundant So signed said, this build we’ll

right not We’ve all nacelles, programs. we family Both aircraft later. I’m Next going five, thrust the them. through XXX for composite go The item, programs. regional of not that Global this for materials through Source XXX – XX reversers is MRAS. and to AXXXneo got top and -- sorry, And programs. Passport talk call through It’s different for kind We’ll a the a of Top is structure the Slide Comac jet, top says XXXX. this multiple about Engine. just Item right It’s engine structure. Sole XX. the primary this GE. the the

Let’s programs. go through going the some GE what’s on with on updates Aviation, key

So actually the sorry, the something the the within kind of prior do. important in law. who down XX, maybe is the presentation, Slide supply down CEO is statement want. this and from to QX what QX, it presentation. what a the chain we is -- Maybe This his really lays is in Airbus is expected lays this This plan, came

the wouldn’t not they’re Airbus. not drop. good below to not able maintained, they’re was have That Airbus believed read the issues, They’re these to up reports. and would per the believe because they and month going all really AXXXneos maintain their pandemic. ramp And they’re business. doubters going They people throughout going XX be to They So there’s of analysts say, analyst it. to going analysts

up below went XX. that anyway, But perspective. So they things from worse it never ended making

XXXX. XX, by Now last being I by end keep just sorry, so these years. continue. calendar not XXXX, And rushing, – fiscal they’re in saying, by – calendar I’m let’s year. go XX XXXX, XX then I’m to Slide yes, sorry, XX clear. the XX of saying fiscal they are

topic. on the We’re AXXX still

family October kind LEAP-XA firm and of information. data the of which lot News, had a of pretty is CFM, of Engine Aero the good based the aircraft. share upon AXXX Bible, engine, the end the XXXX, interesting So Engine manufacturer of Aero That’s a in the really that’s as detailed of for orders News. XX% of That’s

firm much. Now percentage. – in XX,XXX other of just move words, The Why Pratt in these lot big program is that ballast. not that now, for there’s an these with that also and for as XX to that and CFM shared order over orders This is you gets So percentage somebody airplanes. backlog it’s a just Pratt. XX,XXX? know, lot engines balance going upper A of over if

per when the that say starting market the XX in rate. XX% they family Park per revenue bullet to rate here, CFM $XX they item represents million year per So month, want AXXX month to aircraft assuming of XXXX XX be share, at approximately

it’s information is We around before. to of haven’t to me to give bigger information this a Park than program given stuff. and that we right We do that such just to like box, of this bread because significant kind kind We communicate thought danced a so thing you it the it’s for gotten information decided that you.

Airbus which me some has kind the there’s up, suppliers, So AXXX ramp continuing tension tension with strange. aircraft of some is of developed stuff, over forecasted family Airbus aggressive public kind to

their intentions the they doubling to these pretty somewhere. about behind It’s for think backing down. down. You AXXX. They’re being have discussions doors closed firm But Airbus continues indicate it’s not

in the catbird I seat they’re think here.

the engines are they fact I program. because on they X think the have of

they Slide a XX. the to target XX. as So other get well doing of that them to they’ve off there’s chain what supports can to the been that lot and leverage of one to evidence see supply

still – here. though kind completed the We’re the family, AXXXXLR of first assembly completed of They on final the first the the news AXXX Airbus going assembly, test – rather. aircraft

At in that’s capacity this XLR kind replaced this And kind expensive or wide-bodies, on First is ever into statute fast. Because X,XXX-plus think with XXX-plus is. seating truly flight Why pretty which are, and of positioned mile but of the a seating People range airplane, said AXXXXLR statute single-aisle year, certain working next on doesn’t year. aircraft the only range, expected missions. much wide-bodies That’s are service range as this mile not not Boeing certification is entry is ability aircraft don’t Whether people that know if point, the to missions. this certain of That a game-changing big replace it more lot deal. that? XXXX. to airplane. I they a out It’s this on has is a problem that the capacity. That’s coming aircraft. response big – is clear. they’re one thing.

So develop airplane. it takes long a new to time

into could many do, production KLM would take loyal XLR. I orders The it’s large family to So compete AXXXneo against but AXXXneo and sold years going Dubai. the sale to get in the that Boeing will for recently are Airbus Boeing customers. game, available be if they and which hope the for aircraft, traditionally that many, received them even well aircraft get from family aircraft Qantas, in in

thing. way the So feeling kind big Airbus customers. a that’s of is Boeing the

we Boeing in to trouble Now we MAX wish and program. the had well. like the MAX, with get all that know, everybody knows them We’d

in the the being no to capitalize this market problem are window MAX. But gain their my That’s program, is pretty trying in opportunity not so sense on sense. share that We’re the aggressive. and on have to Airbus and are what CEO in my we

So I be believe case. maybe the to that common it we think

AXXXneo on That’s surpassed really AXXX So not in aircraft but was AXXX, is the nothing neo interesting guess. the customers AXXXneo. focusing is focusing AXXX, on after sacred, really going focusing the and family the orders. AXXX Boeing most Airbus the I on recently the firm as really because

just setting I plant up AXXX. the a think they’re new for Toulouse maybe in

Deliveries enhanced thing. the a the interesting airplane Pratt with item, last popular point. begin that, engine of AXXX recently is here an it’s version family. little So its more in that’s than announced GTF at AXXXneo And concerning actually a this XXXX. to

that for the the Now this AXXXneo. option engine other engine is – the

CFM a program shares with So Pratt.

Comac program hope CFM is Pratt into – engine. but would anyway. asking concerned? I they enhanced I it’s shares me, CFM other let’s be go Pratt opinion with out coming Slide some XX, so seriously are but because updates take they’re not if would XXX. here. XX%, my I GE So far, Should

AXXXneo December, So to only XXX that maintaining completed XXXX, recently, is late XXX to before The of prototypes in year. to was expected XXX then to China company, indicated Comac, of the it beginning just Until certification the that until year. certification Chinese they year, the deliveries that, a the not competitor this last begin announced XX FAA, as required certified and MAX. the Comac China that the aircraft XXX December, were be XXXX. was call very the their of XXX end let’s announcement this get until and China is of early anyway That’s And in had complete very the flights. in plane the December the going in Comac

ARJXX. the really Chinese COVID the this in certification. – they’re are think, in Skipping I to serious the are changes over not and a and as So not to long There fact, in a to of go for in from There not one is a this delay not talked anyway because they through terms FAA Comac, delays. year. the lockdowns morning, about move in reason China information the a many presentation of Global FAA this is Slide of it’s of they is discussion bit lot kind a just delayed that plan Comac, just those reasons in little certification. certified about about XX. programs, talking XXXX get this important. It’s I that’s way presentation not not the Chinese the trying here. we’re just the yes, not report when from saw although And it delayed. program talking They’re have good and

to around The we’re end XXX, this the there, XXXX. the the of ever in in commercial the opinion, corner. be will announced Skies my maybe Okay. the about up include it live discussion until XXX. is Queen. aircraft of built, has expected day one Sad is best to Queen production going Boeing the October long – best, last That’s for the it of delivered XXXX. XXX The terminate the

really favorite This favor, is I revenue a a even it’s sentimental GE are airplane. on is than right. though got favorite back you, this we to my left for less we us. But million got XXXX, program on, for it’s little sentimental program and first $X on would in There want always in So photos Aviation new two remind a the us.

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what for slide perspective and – as aerospace with a So of this let’s the proxy look happened at for let’s the the commercial part top industry. almost use

had call right not about, us It’s it, $X the dormant. is Xx we on and about of XXXX, program there sales. an program, for fiscal because really million active of which now million on $XX So $XX sales was let’s million

by that’s let’s $XX million that I So million. of X, $X divided nicely. say, like $XX kind The reason million, works

right XX% go XXXX, would one, And QX It a up at to two to QX what That’s a That’s million. you’re that in that’s handled quarter we this the down. million per kind $X pretty a I of happened. numbers is it’s as those XXXX because perspective. goes AXXX now Xx you bit starting so But story $X of that’s So million, drop, That’s And fiscal million that now. different quarters. obviously, affect of to from say. went here, We units was see million, By are and going we’re That’s interesting a QX pandemic big, lot below Use our look year, in of lot. could then what’s quarters. month But per And XXXX, period. two XX% from XXX of XXXX, up million us, to a per two, going ramp-up. – point. and just $X.X Good $X QX, $X XX million big $X this harder never flat a QX, drop. going a of precipitous $X.X quarter. the sales. $X down little starting fiscal by during Airbus million

other The ramping are programs up.

chain only kind end It an really the was inventory, want was not selling this program they’re sell. where destocking. shut issue. down. end Not they What wasn’t of It rid it all – get everything of it? whatever to inventory. days, So supply they They’re inventory. market mentality Armageddon off of they’re was not producing, they’re And could only that, their not selling their

wasn’t ramp-up. kind because of message their they’re market, on we really, our easy back And kind end lots no inventory rampant over, is lots that much just and and of I we position industry so skipped widespread go part to It back So that the hiring left the of course, to not have that people, tough the what, a numbers. and back. the in was was guess program of industry. lots think, the throughout the so cushion behind they heels. They that to And destocking off laid puts It the the markets. end

predicament here. the To $X.X the group supply chain the list, the the let’s top of million. go bottom So just of ended to portion itself got QX, numbers. a into real Fiscal XXXX, quarter QX,

Our to presentation when our forecast for QX did QX was million. $X.XX $X.XX we million

that. a kind the move numbers that. of and I to bit anything wouldn’t based the I range. anything of at These end down upon into at up into bottom little shift of read we’re something quarter, beginning the but So read quarter of the the wouldn’t

QX, the to $X.X down is page, In of forecast QX XXXX fiscal the lower the Going to $X.XX was million. $X.X to million $X.XX QX part million. current forecast, million our that

kind So we’re of the tightening range.

$XX very about fiscal this We’re not forecast but We really Tightening total million because XXXX, makes for the million. at go information maybe it’s much. up to more quarter. year, $XX.X million, fiscal We’ll to changing back it. $XX.X adjusted That million. give the $XX.X

close. getting We’re

and the and chain presentation, the the factors orders I the that The are disruptions? talked those the about that but may supply we’re X disruptions supply are and impact about things for affect quite How COVID All most the booked. X, So But have could forecast. we discussed orders factors maybe about close. those at beginning two. apply. Certain they COVID would say, forecast. of on there, Well, how not We’re are the Slides QX, chain?

prevented So that mean, shipped. if from those being happened something shipped, I aren’t them orders

are So, for QX orders about let’s for Park. not about I’m for when GE, talking everything booked. talk with

discuss to We’ve and Slide back to talk that got Let’s CX more go about $X.X to a XX, sales. of little here. go million

fiscal to let’s QX. year XXXX So QX and down for right go – bottom, at the

$XX.XX million line. $XX.XX [ph] Our million is to top forecast

on $XX.XX In going million predicted what’s $XX.XX million. QX, to So we here?

subtract you – million. us $XX.XX was doesn’t supposed That to be supposed That And $X.X that’s million won’t that bring in to QX. Now to million, would QX, there. still it’s be that what that be? get to $XX.XX in us

still say, million the million. to that us And you million. to QX, take $XX.XX QX. higher than for we QX $XX.X so the is terms is say, and $XX.X in of gave subtract to into million, which we affected million, QX, $XX.XX think forecast gives continuing that? what It things Why let’s Because are $X.X

prediction for to $X.X And Now was you all the bottom about for million million it’s it’s to QX, $X.X talk the QX. $X In we not especially see year current line. fiscal $X.X our stuff, then other the GE, again military. million million. QX,

That’s top That’s want by the told line. bringing piece line. good. when $X obviously I the in driven We we’re news we share you this top the to story. down, QX of QX really that’s about So, We Nothing presentation. you not materials our the bottom blade still the about the CXB, with about the in One of of expect QX. the quite million where material in margins did that number are good for sales QX.

Long-term okay. forecast. So

which me factors the the and to certain affected similar are over Those let risks, X. not may which Slide Sorry, factors, and skip affect QX X forecast. listed in

to to going to highlight But something uncertainty those a want sense. probably people Long-term go forecast, just had big have that. want much COVID give this for a there’s confidence have we’ve for end I do We defense, the would don’t us of things chain we do us risk just in point, we factors. some we you like that. level market that at We little those non-GE, to feel to guess. risk makes bit forecast disruptions, too are the that’s are when as to asked Supply back And So again, forecast. market long-term that – reach items.

longer-term is that in but it’s will possible, and have it’s QX, So in of able which possible promising, we’ll point, dust May, give at be kind not the some some forecast. of maybe I’m you cleared to

here. going keep Let’s

this skip through our plan a themselves. Slide numbers the are stuff. line accomplishment. speak late. make in XX, We That’s big just a I’ll just Kansas. trials That’s complete. trials begin Tape The January. thing. running progress, And We’re could good to line qualification in for expansion film in point. The

Update thing Good major we expansion. XX per people, hadn’t, be redundancy, canceling we’d a if with at and our behind world we things we completed their in if Airbus, forward While way this or capital you did we’d their look capital month for many because on others especially for were budgets XX. at for that not pushed Park’s be slashing prediction just of point, from but Slide curve, capacity. hurt, spending altogether, like

did count So, XXX people we our XXX. our was when It is QX presentation.

went to So we’re up. trying not down, push it up,

want not So hire. be That’s a not to to And minor only major talking very the we’re That’s continues issue. it to we’re one, a hire the Park. we people difficult issue. about but

I chain, hiring we know We the and facing challenges only many about Major difficulty these you a Major but context want things having discussed, that. have not people know challenges, doing it deal supply reviewing they’re day. a daily that just work. every things the short-handed. with to that battle, the chain, let supply to lot we’re Park’s put we’re we’ll in that people. are of one people So, freight

and to scheduling leads and accommodate try production adjustments what this changes supply to? Now abrupt It planning chain to does issues. lead to and

out That’s may You for ideal. because, okay, this people not factory, so. plan we’re so have That’s a know to can the couple produce predictability some or raw kind product to next factory, but we who us material. week, a get of months did planning they be they run like the

everything So, we’re going around. to switch

people around. move to going We’re

to going else something materials. we have raw We’re produce where

managing with and So contagious. with a It’s under lot effort circumstances. New it’s them. those quarter living I Omicron, we’re COVID that work And for challenges, goes bit been at quite the extra Year beginning our start still to difficult of challenge, COVID. us the guess, it’s with a of business into COVID, rocky off a

they’re causes people. our have we also have I people it is okay. done fine. Most the So, mean, for They’re production. important of most pretty But concerns. our big One, obviously, our disruption recovered. two

We’re dealing with the supply chain issues.

and feeling they calls have It’s I they’re where at may They positive. test test quarantine. getting I’m give We’re Then my – home tested, And or or in, I’m move may to around. COVID test positive for positive going be They okay. not production to They to somebody just a have somebody like, but out. for somebody results. tested not you be notice. well to I vacation like fine, no, and it’s they have people wait

– caused that in a vaccine and definitely the challenge. by So mandates. category anxiety it’s Stress of

That’s how I work you’re thought But they were COVID. vaccinated a So then about living, I’m my you lot anxiety people of thinking, into going for have I it’s to a get now, they’re vaccine. stuff, We lose lot up their they getting merits and fired, is. our it before people because to going very had to to for get maybe the actually not of for jobs. know But discussion get lose people. we’ll because vaccinated area. do lot wonderful they they’re job if about I’m going who hear discussion my and this a of get I a what relieved not a he caused the not thought am not fired people we’ll getting told going vaccinated they’re about our and spoke said to

it doesn’t there rule, testing Now Supreme probably ocean strike to supposed with this know you option, if good. the which is Court be a down, is this,

Monday, on way out. figure to that’s pay is as if we the going a We’ll the bring it test, now. maybe alternative. we test probably it not not If test, people that the people they’re We’ll to words, – they can to whatever right do do for that get other test. the once vaccinated, them. buy an for can in them in, week, have So understand an we’ll And

happens and big trials. project This consuming that. up new deal, is without reinforcements. that handling online, what big, new big, with shorthanded major are the Bringing So people equipment we’ll plant a the see our

We’ll They have that. They’re is projects our companies new people, A to go That do slide, a a them. talk They I to about what of lot effort pressed. feel bunker. of Let’s a still on lot was here, dealing managing with of lot talking XX lot what initiatives. a go of Park’s it, challenges. into some times, dealing stressed. of a takes with and about That’s before. work,

opportunities. We We not We’re keep bunker. it’s lot work. a going. in stop. of for still. opportunities, pursue we look sit don’t don’t We extra But a We going

that. again and Park’s people But this every produced consuming program, people overcome. projects, That’s usually are again handling QX, notwithstanding shorthanded. without shipped many Park’s got once talk people that goodness Our Major customer again, roadblocks be obstacles stepped reinforcements, handling people I people are produced and in for our shipped quarter. And the flexibility Park do. Park’s and our Everything had once matter which fiscal XXXX about thank could what up. no

the how airplanes could Others Park’s engineers are kind And god-sent actually and from it’s details, people. our So neither was people. for for the shift. precious. These design guys These our shift We the paper We thousands, our don’t is and like people. laid we throw up. need to to on off almost people god-sent people pretty aeronautical keep god-sent. nor thousands and I’m going was contest employees but holiday seriously. great going keep want and people. the are and a thank keep blessed government are is day to importantly, into Park Park what back taken people. winners, by have held makes money airplane really government pictures party. throughout contest. have Park’s they our their our and not Park. it paper We we to people kept These night further. asked down, our all people fortunate the goodness are Every are great It’s to Slide business their of it’s of when who for pandemic Park’s or It Park, because very year, crisis. government incentives and these when going go economic most took any money keeping XX.

paper the those XX. airplane our of So holiday airplane contest. winners – are Slide

its some is top from exciting Day are James just – what about of top an we Christmas being new, French doing got This talk Webb. that’s the orbit bunker? earth, thing, in we really point of Lagrange to located distribution way, not the James of Space the X company, Rocket, a on the that Telescope. X So by that It’s let’s approximately So same route on miles currently in launch we Guiana Webb million one on Ariane agreement with. from that’s have the

XXX,XXX moon miles perspective, for sun is the the the Earth, XX Just million about from is miles. about

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looked So the James existence. universe, of Space Webb to has time, Telescope mission back beginning

how beliefs, the theories scientific about theoretical lot existence Well, So began. been universe how began. began, never is the of big this of kind There’s a able a to we’ve universe how actually see thing.

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would say, the So can there. But the here. in I it’s bottom up blank And of fill page. you the

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Let’s go on Slide XX. to

this yesterday, about so entered partner So there about seen agreement was a into news have it, that the in France. might business you release with we ArianeGroup

from we product actually CXB in purchased type this Bordeaux, them think, I time. So long company for our personally I’ve around XXXX. long, a visited

for with us own So company, company. say we’ve they account, could a long working company, we’re exclusive distributor asked for honored it asked their for special a to this and that us course. be buying the could of distributor very yes, keep time. And we the them We’ll great this I been a our really exclusive that but love be product. we U.S. they

deal. that’s really So big a

We’re very happy that. about

it XX, Slide go guess is. Let’s on to I

at Major initiatives plant. new Park? new in potential what’s project another, So

you give we Sorry, can’t about it. much more detail

not position these in that to are we’re just But do working on. a things big now. We’re

want So aware at least of to we be them. you

heck and interesting person that the doing plant you was asked because our of the huge heck some the saw somebody what person – if with an spoken plant, visited plant this posed an it question was smart are for. somebody huge observant new So and what by

a new is to which is project Park. bring for two There space joint increase there’s have But $X working another to initiatives project page That’s those another tape both are development an equipment if projects something have about. to that’s line And And capacity, hot probably would do currently would additional about installation line $X relates project, including perspective, this added line a suppliers. hot be there. the our of we line capabilities would solution but own. new with before, be for for line that we – involve another actively about projects to solution in new be a to warehouse, add it’s also lot there’s new inventory equipment a that offerings initiatives, have current would line our doing. installation new still another a and of doing. we’re line you talked be these project with melt freezer we melt line, we’re we’re just we before. million and to costs. this to with already we on projects, million currently space space, went we’re equipment of it It’s in and film something purchase not would tape We remember slitting, space our important talked lines, a equipment we Both reviewing market what that forward plant, purchase customer, something One And currently set is would lines, capacity. or our We about of which major or that and but these aside potential our on. have for

Let’s hard both slide, they’re topic, the go XX, there’s for on final posted. I front these making we’ll same burner but on Slide deadline keep the projects believe. no projects, on decision next and to Continuing you

are a to the do Park. do. market not currently both These not things Although into projects capabilities to bring would these manufacturing different. structures, departure big totally relate it’s new composite and offerings so something They we

we’re much we Slide aerospace kind about which formal about collaboration agreement. it’s Let’s new on, so preliminary. because tell to capabilities sorry, you of manufacturing this with It’s arrangement. not on a partnership, at things go an I are established XX. going Park Again, you partnership Park. on Park the partnership in you what’s it’s believes manufacturing one. It’s can’t We say can’t a about has to But important not Park to company some give Informal Still aerospace to this want formal important tell we’re topic. little working established a company, this. details. complementary

led we are currently RFP keep and often "partnership" great Park and our and That defense. for formula collaboration has partner we’ll the an partner are partner open collaborating anyway. do. programs. they We an and this for believe we partner new could partnership to don’t and opportunities defense Park a defense things defense important program. This on posted. new our the us and informal – collaborating you this to it, see collaborating has us, for on already they or significant significant currently our We potential up informal This things do. an do partner. Park for and another get So Hopefully, be been about collaboration that don’t do we’ll have we’ll certain award informal is program

So let’s XX. to on Slide go

of these think kind the I last were slides.

taking long. we’re so sorry, So

fast. by can and probably it rushing too tell going you of I’m stumbling some As over

So let’s just with top the year. start

not world. investors, is our world. us, world Wall world but press a Mainstreet Some doing That’s say world is live all Street Park’s and it’s else’s press, world. financial the lot hear that we somebody say not full with lot. I the could in maybe for world is the great not all of world, economy and we we a read this is a the the well And challenges. Maybe in. the about of the it that’s

supply just review to transport here: perspective and challenges. major Going challenges chain for of the some

major many its abrupt we and with these yet can't difficult the about to We bringing vaccine to living don't facing a production it, we adjustments say new Some need, people daily our anyway, We people these hire shorthanded. hire new battle, are challenges, challenges and mandates, see talked equipment then trials, major COVID not scheduling, line, that, are effort, people. plant planning effort, still and on very improving.

That's deal our the key lot these We've a go on, the in the forward a press which Even every But to which of lot going Let's slide, are people face But We're key not many pressing get with do. to challenges thing. XX. go difficulty, initiatives. of lot major here. with It's on and We got is. here's do. challenges, a is people next until and That's to That's a confront day, continue keep how bunker our it. high that better. a know mean of We forward. into our people you just about it we want doesn't things what about complaining world. just what we point it.

these take initiatives. we're with Major with business new lot just partner company other we new lot major "partners," things pursuing time. new a pursuing informal effort, The are point numerous we're is our these projects development about here all of agreement, through in opportunities collaborations spoke initiatives Our two ArianeGroup, some manufacturing our aerospace the of lot of examples plan. dedication, new

difficulties all we But tied that. That's the time. and could who in we're other with other really say, we do don't To this we'll are. challenges some we're never up time comes. these facing, us, the So all yes, not we believe

do press what do we So Park, developing shelter do and get get may it better. the difficulties, wait. face we to In bunker we not do. of seek others things at now. do and That's We forward. for in bunkers, We challenges not wait opportunities. But the we

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responsibility a These like I'm row, Christian, you. or But Dave, names the Kelly, Dave we effort here? the end a that the David. don't something I a what's several But facilities, on four major the are Martin, is at picture the a like for people one people This going departments they new that. others people bringing didn't is and – trials our of photo. not taking is major, or there's from These unusual. on make there's Back us for Davakar, This Now these or not photo. Philip, make long of and with This time. row, about didn't shift are were There's Dexter, of engineering plant presentation, to Mell, equipment production. going bunch people. Front groups R&D, worked read little Leo, are of Way, I online. These every show different teams. people a departments. to said, new

were no ago, time could lot no remember. These So bring on new four to months people have line. plant was free of trials. didn't I there There than

the So hire it's a And one have this a we and these – people we plant we on even not though not new It's are people, job. major the department. they like, couldn't project line have people to bringing hire day that trials are doing tried people. of okay,

the tape with dealing We're as of it people bringing So the other plants and trial, new of qualification, with aggressively. are trials line. in lot line effectively, it the trials now, dealing a aspects our very are complete. line existing very I the said, Doing film on

So an hour. we're That concludes talking I example right. apologize, took kind Again, that's it about. presentations. a of All just our whole

them if questions, at So any I operator, happy answer Matt to and has anybody this would time. be

Brian Shore	Chairman and Chief Executive Officer
Brad Hathaway	Far View

Park Aerospace (PKE) 11 Jan 222022 Q3 Earnings call transcript