Earnings call transcript Q4 2022

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Operator

Good afternoon. My name is Diego and I will be your conference operator today. At this time, I would like to welcome everyone to the Rogers Corporation Q4 2022 Year End Earnings Conference Call.

I will now turn the call over to your host, Mr. Steve Haymore, Director of Investor Relations. Mr. begin. may you Haymore,

Steve Haymore

section and year the The XXXX can was the today's everyone the along quarter release news slides Corporation and call that Investors on found full earnings today. be our welcome afternoon website Rogers with to issued fourth for of Good conference call.

Slide Please turn X. to

Act from call the within certain I strictly Reform statements. those demands historical Principles. not any and and Accepted begin, competitive note XXXX for the directly measures deck economic can we Securities materially measures could include not A are of of be those like that in Before Private discussions GAAP that to Generally conditions, Such financial of today's the this statements Rogers These environment. include may cause be in subject forward-looking in statements Also should actual that to would slide financial call the measures prepared in meaning the Accounting call. market uncertainties that found operations this reconciliation considered conference many conference were forward-looking to to with and are exist Litigation as during comparable financial in factors. results accordance uncertainties non-GAAP most differ factors

Turning CEO, turn now the to Colin and is President Slide and CFO. X, Colin. I will call with Gouveia, Ram Vice President me today to and Mayampurath, Senior over

Colin Gouveia

as and Rogers several President joining a you that of I'm there company first CEO here thank Thanks, to good to me call on excited things for us. earnings and everyone, Steve, are is serve make the afternoon and CEO. Rogers. special my today pleased as be

organization. to people impresses talent throughout teams. have This and daily our customers their business, with of with their bench a deep incredible to dedication team we our me First, the

track and performance grow to record for and expand on we place strong an will lastly, clear And we leveraging end high of our focused growth segments have positions on and enable deliver us operational and employees, other strategy focusing effective with market-leading our our are value shareholders, our intently customers financial a that Second, long-term to in innovation. by improving stakeholders. plan

that touch I additional a one two our cost programs through of our and operations to shared drive and our improving hard significant key driving our optimized In margin at announced priorities our some X. improvement. near-term publicly our I'd market ensure results, Slide walk the targeted are December, portfolio like weeks to priorities ongoing on ago look actions Before started improve is the We across business operational quarterly taking operating and by and on Number performance operations to improve reflect profitability we organization. to streamline our current conditions. to structure, excellence

I'll shortly. underway, are efforts detail more These and discuss in improve currently necessary to profitability changes these

more brings Additionally, in Haas. our President Global who Rohm ongoing deep our we knowledge and leadership in strategic operations Schmid of operational and Larry help of experience Operations, focused concludes as industry as at implementing such management global be of on business. are team the bring and bolstering with operators us appointment This Senior and to the grow Vice individuals, experience and Larry chain initiatives. XX than who our instrumental companies will years Dow excellence senior supply

Larry put we and to will tools our these the have forward right rapid to execute ensure drive in improving support We effort better work significant initiatives. investing and have this processes into people help making. decision

to customers have recovers. a we support profitability are well-positioned to be improving with exciting market taking clear be to when top to us I to on that ahead, our is priority, the enable our our we approach balanced investments want capitalize and While the opportunities

forward look with of could we Starboard to ahead capture us. are release agreement. to opportunities press against reach exciting plan related Value, we that I to pleased continue our the working Monday's a to strategic our Board executing with Lastly, constructive

review I'll the we're X. detail Slide to in specific improve more Turning actions profitability. taking to

First, manufacturing and of have a workforce. all which is we direct X% actions, indirect deserve. we of to Rogers organizations detailed best of resulted with respect not we in review take and implemented our our people conducted they our corporate dignity global did something our lightly Reducing and headcount reduction a treat and

choices. a However, and adjusting the environment make some current align to to to us necessity is our organization required difficult

rubber undertaken gross have margin margin and improve the low line EMS our natural which mix. manufacturing we portfolio This Griswold a actions product the improvements product to will our Second, series across non-core drive operational in business, divesting of facilities. our includes improve

addition, implemented at yields, factories have and in business and scrap changes we productivity improve units. AES our manufacturing rates process both In EMS to

Third, other laminate taking and we includes circuit materials footprint This the AES. Road to are manufacturing actions facility optimizing in our Price our global cost exiting structure. in Arizona further reduce

expected net be $XX to inflation. On million, manufacturing an are savings total roughly of basis, annualized cost

to begin hold second in of second actions margin these improvement a half the of with we to in we coming XXXX additional As an approximately the are enter to the quarters, year. XX% the as targeting gross achieve quarter take of XX%

will We profitability as reaching not levels at is clear historical our goal. XX%, stop of

at and March. XX% to timing progression We will outline reach gross for more Investor about plans our in our the Day margin

also inflation reduction managing to the we spending. These of are discretionary gross headcount, On corporate operating also the addition largely in top actions XXXX expenses. expenses. operating will offset the service In professional decreasing margin, of and impact on fees we improvements in are

Now turning to on quarterly Slide X. our performance

topline which adversely the in our results. expected, As macro environment challenging remained QX, impacted

more While than markets. our saw key fell certain we in X% continued quarter, growth prior the compared to sales

XX% in increased and rate grew quarter XXXX. full the pace EV sales increased at a the market double-digit sales versus prior year sales at from a the EV and rebounded quarter ADAS versus Our third sequentially. double-digit disruptions

critical end challenges. leverage solve these and to continues our and position technical as customer strong markets in meet to Our remained needs grow expertise important we

by clean had good growth our led also interconnect We energy sales business. in power

China. was the electronics QX portable in impacts to markets, a our a headwind major key due in decline shutdowns as significant to in production sales, customers experienced our COVID-related Turning other

customers recently disruptions have have to our the restrictions lifted, As ceased.

in this the typically seasonality from standpoint. a segment, is However, weakest QX quarter

are we customers other to demand and current the environment. watching from softening consumer EMS In positioned market experienced segments, OEM are demand due well returns. when supply We to demand closely our signals business end in industrial our macroeconomic

we the was are on within is our challenging, Although, quarter managing what focused control.

the successfully history cost on key we and organization benefits pillar market executing reduction we of to with as We the aligning Rogers are outlined. in expect An our see previously early is part trends, and quarters end coming with we solve strategy initiatives to markets, our our our critical leveraged of many have our deep long and are From solutions. strategy. growth. and customer relationships the stages expertise have These this support to our DNA are of applications of innovative capabilities important implementing unmet needs

highlight our On we growth our comprises the potential. the opportunities exciting and business vehicle more and Slide across market about some I'll than think opportunity represents growth the X, portfolio of XX% sales. strongest now for how The electric of

see to interconnects, and including traction power continue pads vehicle critical ceramic and battery boosting are substrates, compression reliability. our We products, which our performance to strong for

an substrate revenue in ceramic utilized begin our major progress OEM. a multi-year where a inverter automotive This in recent was XXXX. design our is of generating example to selected for technology award win design One be will

profiles potential, and growth including excited these we we have be Together, XX% continue will about Aerospace have Energy. to ADAS, growth of other. XG Renewable comprise Smartphones segments EV other the While similar these we strong more opportunities our that portfolio Defense, markets and than to and expect each

our with are the this increase In market, reputation of positioned ADAS reliability, and the advanced safety for demand and for history capture growth continues in features innovation to to market. we

high due high that growth performance radar remain are laminates circuit a to and We our missile expect Defense reliability, Aerospace to and essential to systems. critical continued opportunity solutions

production with example a applications that help communications leading elastomeric solutions In phone materials. contractor content positioned system. technology is due in well our XG with remain next to generations highlights to past where Smartphones, win were our the we demand satellite and disruptions, expertise selected recent and broadband performance prime high generation a enable higher advanced per One our a design versus despite

conversion substrate power. improve wind and Finally, energy, power energy and solar interconnect in our in power efficiently renewable solutions help

Our power traction technology OEM horizon. renewable was substrate to our for in market a this a recently modules global be by used ceramic selected as continues energy multiyear in applications over

about of comprised into provide the at solid forward sharing industrial opportunity markets, look the our of core our and sales March. to Day primarily We are component the These more our Investor portfolio. term across markets at longer Our cash margins generation. third growth, of end segment markets market our high

in want role excitement are our and at close taking moment history. my by Rogers I reiterating about on CEO the to this

clear These support to future customers. our business the strong in our confidence with to in remains that us on includes growth can dynamic, priorities key ability to progress are we strategy, the great give execution long-term our the shareholders. our our improve actions and optimistic for our the environment on deliver in control, sharpening and together our focused operations value of elements having place markets which making we While projections

it more With I'll performance. Ram, turn that, over discuss about to our financial will who

Ram Mayampurath

afternoon good Thank you, Colin, everyone. and

drive by commitment Let our improvements. and to start margin reiterating profitability me

full quarters are our in cost as and We overall are profitability and of markets to quarter for year before margins to meaningful recover. These carefully the XXXX result I well watching will implementing XXXX. discussing us our improvements actions fourth the our outlook by reviewing we actions further coming will the and performance start costs first our quarter for structure. improve position in advance

$XXX and XX, good the industrial growth Slide market net Turning in a Silicone acquisition. million, Engineering the EV strong to for by XXXX year-over-year to sales by increased growth led X% sales XX% markets, in

impacted disruptions XXXX. growth However, in macroeconomic continued and global challenges

sales impact to that, that million. was of detailed Investor combination XXX in December for $XX due In currency year also the our declined issues margin prior addition year challenges foreign XX.X% market by of we and basis operational to points from unfavorable Gross of call. the a impacted

As the margin Colin second levels. half of expected path discussed, XXXX have number continue a year, we in a actions XX% of improve gross sales QX, at to to assuming this with outlined

actions divestiture XXXX taken to charges offset Road will per additional $X.XX, exit levels efforts there the improve one-time a and which fee, share our will to earnings to Day, Price non-cash included of historical benefit stop line. product EPS and Adjusted receipt of impairment of In Our Griswold outline at not were and our achieved of the we profitability from rubber about partially from termination path we upcoming our more Investor profitability $X.XX. by margins

sales will XX. revenue prior the from discuss sales quarter for energy of grew declined more than macroeconomic were and all clean on $XX QX due QX, lower of fourth million. volumes China. the in decreased currency the offset COVID in in million double-digit from ADAS quarter results to X.X% of headwinds impact than EV, QX I but situation markets. foreign more by and persistent at million a declines Slide beginning $X other Next, $XXX and rate

in occurred anticipated decline the to the were XX.X% our China. EMS impacts much of demand electronics COVID-related in where business as due Much portable for our of quarter-over-quarter disruptions sales unit, lower products lower were

In demand. unfavorable lower FX of as X%. sales to softer EV partially was Defense higher by This Transit. addition, environment. the Aerospace by demand sales and Contributing X% due offset macroeconomic ADAS and in AES was declined industrial to volume and declined Mass was challenging decline

Slide flat XX. was approximately of QX. XX.X% to margins Turning percentage QX versus

within China yield profit impacted from offset unfavorable margin impact of in $X to In volume. lower COVID-related lower QX, EMS QX gross and higher headwinds, lower of in particular declined volume partially by improvements and mix spend, had products macroeconomic gross was $X by due million lower business. approximately logistics costs. This The margin manufacturing million. an impact disruptions to our However,

in improvement initiated benefit As of reduction the our half will XXXX. we and call, these QX, the communicated actions December fully in be realized from actions productivity in have first several cost

million million to On I'll prior changes receipt increased was million discuss $XXX in net versus versus next primarily profit operating QX the quarter. fee termination of Slide the prior income due $XX total, of operating This In XX, $XX the quarter. was Griswold which operating business offsetting charges, sale of was of Price and other Partially natural facility. income. impairment expenses, restructuring Road the the this primarily and of rubber related the to exit in recorded increase

profit was income Adjusted approximately million. basis, an offset operating profit, gross prior explained in $XX.X in increase to costs in operating decline million gross than On million changes lower and were $X professional profit previously. by lower expenses fees. remaining an from as which severance services versus quarter, decreased operating adjusted The $X the resulted more

of includes at increase XX, $XXX.X million termination the $XX approximately full million. end fourth in the million, net Ending receipt Continuing fees. quarter, of fee ending facility XX to which cash as Slide and paid borrowings the of QX approximately revolving XXXX. mentioned net We credit December year at of was in $XX for million our the the million down cash a $XXX transaction-related from the were was slight the $XXX

due paid were mostly mostly were received. includes and increase in capacity for was investments half the target year-to-date Capital fourth year growth of to $XX targeted capital The $XX for on $XX QX, to the the $XX to paid termination taxes the to raw materials in capabilities in year. This levels. the million quarter year of million the capitalize higher million expenditures fee in with restock in building inventory million first the working full Cash to related taxes $XXX space. the million new and the EV full at opportunities

December $XX we of stock mentioned the fourth our repurchased million we in as quarter. in Lastly, call,

details on I macroeconomic for Number like points. again uncertainty. guidance would discussing XXXX, the QX, Next to Slide highlight before one, the once around three XX, continuing

to are economic situation are recent globe from We capital to and committed indicated as support headwinds the in profitability we changes allocation of the watching to long-term three, to we and two, Colin right XXXX. including continue to remarks, in China. closely COVID conditions number strategy, necessary in growth decisions. Number impact And increase cost and his policies the driving improvements the inflationary the around our investments will productivity make

capacity. investing on throughput production We existing in will maximizing lines focus of new before

specific context discuss that the let me ranges. With guidance mind, in

to to and expected of our gross million $X.XX XX.X%. range and Earnings are between with per million the to range net of expected of a adjusted share $XXX in $X.XX XX.X% sales range is EPS positive $XXX and the $X.XX. be to First, in margin $X.XX is be loss between

advisory comprised and actions expect of one-time recent million other announced, of fees related to in approximately non-recurring items QX, items. $XX We discrete severance certain

XX% the will For and XX $XX we XXXX, investments Approximately, full range capacity between capital for be million. to continue expect year expenditures expansion. to our of

remain customers. We to our that We fully strong committed full rate address of the tax expect year needs our XX%. and around leading to strategy, our solutions be technology proven our

As QX our year. on recovery second plan in we achieving gross and in focused are additional strategy, of making execute the the half growth XX% and we improvements margin

for questions. I the turn will now the to call back operator

Operator

Moore Our Securities. Instructions] first with question Daniel comes [Operator CJS from

Daniel Moore

question with start I'll modeling a or two.

improve margin guide is in expected gross EPS relatively an is on flat, Just to bit revenue basis. yet sequentially a adjusted lower little QX,

significant Just an from sort G&A, to on It's talk about actions cost the primary but bridge deltas of there. reduction QX? place, mostly basis, what I mean adjusted the you've got in QX

Ram Mayampurath

the was QX. on from the first XXXX. to low see an QX increase do we top of QX quarters compared line, abnormally to So three

yet. see we see not come top mix increase don't margin higher the Although, an it's in the products line, through. right We

we're post QX. we watching that mix the forecasting that not portable We come policies, in are carefully carefully play through COVID made of there on through the but to how in watching will recent electronics are China story decisions much

of in to QX XXX why more taken timeframe. to the have points us from we benefit we think December. we'll to that, Like in improvement a we That's in cost reduction and be actions where in most the In QX. back will basis we said are we addition where give QX were QX committing

up show the to in swing related from expect rate. So the tax the biggest EPS was in QX. we most reduction, to benefit that cost of And our

of finally We we've QX some rate XX%. through. chasing, a tax in more one-time We a due normal to activities were are been came down to much which to back of structure about lower

normal the much EPS. a caused was rate big tax the our in lower in rates, swing which So than QX

Daniel Moore

a and disruptions. demand. as you and from near-term chain, kind and as into more mentioned kind impacted by typical of industrial tunnel at of portable disruptions well of supply QX, the portable COVID of indication much macro lower the electronics industrial? Obviously, what's Talk electronics the continued and perspective, COVID seeing How end was are electronics seasonality you the on any light portable on outlook weakness

Colin Gouveia

much typically been. second portable first Chinese is the works than how fourth holiday the and season quarter that's it's and New way the for third and are Year, by stronger So electronics, driven typically the quarter, and it

us of can to didn't for the demand so and and because many and chain that cleared of available ready year to have year, in we're have the watching both COVID happening if production half supply. China, to supply our what's end carefully were up, woes factories we type the and produce of that paying plagued really we that in due customers, So shut our to and it us market returns, second the again just we're and led the We're decline. down attention now prior

Looking stabilizing a When XXXX of at in sold, was and decline electronics ahead, actually handsets half than bit we the you do to significant see year. XXXX, second returning to XX%. the the at look overall more portable normal that a

see we position but rebounding there overall a which higher handsets, the share regular have just to for supply, that we for use we're XG great a especially than and in not model. and bit So greater models, content

we rebound So looking half are the of electronics. in for year a portable the in second

Daniel Moore

in levels right start you Maybe to what's and to Historically, inventories been we production are lockstep? your kick Is your destocking other somewhat of markets, supply or that for when the in see challenging. to just sense looking accelerate EV, terms visibility higher ADAS inventory growth your do it some and higher, chains now? expect of customer across continued where has rates demand

Colin Gouveia

Ram a comment. add and start might I'll Maybe

was there but automobiles, ADAS due materials inventories, have the think shortages we've in inventory have At we a raw built-up ADAS slowdown key bit, we that. through to inventory. worked which year, around last mentioned end of terms we of in to of make challenges, So the did production

ADAS the normal this year for returning see forward. going to more market we so growth its And pattern

supply in the do things, Rogers planning terms making made strides is already but a some In improvements Ops the a terms big addition yes, in difference. Schmid of in great there Larry everybody, really and We've of we And terms processes. of we've terms were supply lot our of for demand chain, way some made overall internal things. stabilizing planning new challenges included, of of good leader

mirror. we believe issues rear be So in the view that those will

Ram, I anything say in don't inventories? know of if have to you else terms

Ram Mayampurath

covered you think No, I it.

Daniel Moore

deal compression interconnects. a Within EV, power substrates, you silicon pads, great battery mentioned, obviously nitride have across you exposure of as

the do EV in design or silicon win supply You new chain most to among customer the of gaining where months? headway you're XX win customer mentioned of see months as and next adoption accelerates and nitride. these Where the growth acceleration fast those of the see expect new to XX you do terms over

Colin Gouveia

at business we're would quite of parts different We across much really the feel pretty point, say perspective. good portfolio, we're our I units one this having vehicles, into the EV/HEV global also within a technology goes from that differentiated well-positioned every success of has Rogers board. like and

three OEMs Asia on TS&D scheduled team manufacturing in America, sales their folks and areas. a calling major directly North regions, and there, engineering in the strong have and and really and same solid We supportive Europe the engineering very counterparts

The the look XX% the year. last grew higher we that portfolio, So all of I roughly very that in would when were year. than say we and across we range market for that grew well

and market, many a than And be and in think that We with aspiration. in guiding our teams sales all really can manufacturing our of feel but in really have OEMs. faster the regions, not we good can here. types of we're the successful I place, we're like technical different footprint engineers grow we So we that's position because

Daniel Moore

next to jump follow with Analyst forward the more Day I'll All ups later month. and right, at hearing any back look

Operator

Instructions] with Craig Securities. [Operator question next from comes B. Ellis Our Riley

Craig Ellis

clarifications couple a just prior. some with start of of I'll the of

I wanted of $XX there break two, personal to clear be impact those bit were any quarter-on-quarter. contribution So where primarily guys? and little was out industrial, revenues China just the electronics to That way million of with EMS, relative the down a was in

Colin Gouveia

That's correct, to portable was electronics. related Craig. of that Majority

Craig Ellis

Yes.

So round? maybe XX%, XX%

Colin Gouveia

Closer yes. to XX%,

Craig Ellis

with semiconductor supply months, sense our from partners that the for chain sense to sounds it tough been what personal has convey. up. a almost of you're your that that's from we're XX that your companies. the but We're It's some you last Colin, position hearing your bit is what cleaned out, like it's then like bottoming materials XG? And getting in for a Is hearing chronic meant

Colin Gouveia

We're two made it's more being seeing It's the things. that, components exactly China. driven available, by and COVID in but change in upstream primarily policy

the lot year QX of that zero shut of because factories long last led of to for So being periods and in down time. policy, QX COVID a

COVID were the much. though is was changed downstream could even produce not more the policy strong, our open. backlogs policy. pretty of completely no ODMs the in So is China. There customers, because That policy Everything

now to don't returning And see headwind we this so year. a for normal that forward rest going see things and of the as

Craig Ellis

just buildup of is one finished of sense a and the And we're has is out? been chain hearing we China that so they're your that things the that that cleared inventory supply smartphone finished inventory in product

Colin Gouveia

there's market, still bit. In be pockets a end it's destocked in probably need to our of opinion, terms

And be to will over, assume things I for and we we levels say return as of be so, towards the first and products second needs that probably those with there'll inventories. inventory year. of But to normalization what compared demand happened and half And stabilize what the year. we to the -- a half about things see the progresses, think of last there'll would as happen growth generation new

Craig Ellis

on margin gross just the is clarification next the then And guide.

that fourth benefits sounds but got near we've XQ. that sounds then And volume isn't rather it to some really in the than is We've what or fourth the better start-up advantageous. XQ and efficiency, have we're mix got Ram, So quarter like for quarter back quarter. saying third you're materially like really it COGS going costs and levels

right? nice significantly progress revenue in up just a laid the get the that margins gross you it's December, we've is making number mix right while to targets so higher against out is not quarter-on-quarter, And significantly, it even got though

Ram Mayampurath

correct. is That

million. $XXX We to to finished $XXX We to closer million. are guiding million $XXX

to with actions $XXX in got cost but our it hitting QX, do the the and It's timing think you well. reduction mix I the of captured million P&L.

Craig Ellis

And expected still play was gross manufacturing we how yields. that a from capacity bit out differently and margins points, the to are or so XX% the basis December got things than how? XX% XX basis points you to Is little management path that that, we net if seeing XXX from

Ram Mayampurath

It similar. is very

So the the a XXX basis mostly improvement if mostly corrections points points related and cost improving That lot. and to productivity is XX you yield efficiency operational efficiencies. basis related may, to is improvements, changed whole has not

still are in we We basis make we improvement for XXX of some after and to points targeting business. a net account inflation need investments the

Craig Ellis

talked then efficient in more that year year-on-year to how had there? the this interpret move or year-on-year. you a million Is trying be the $XX CapEx decrease substantial Colin, what release, down optimizing in is decrease from we're And about the to there CapEx? point on we facilities, press I seeing wanted really in do XXXX, because very million from direction about follow on that significant is a up $XX

Colin Gouveia

I of I think have capacity capacity. would terms been at and reason, our some unlocking year, nine plants that's middle some of to on at we getting months since see starting in improvements so the better real much have say probably that and least we're throughput dividends working in been free productivity key last of main

terms in the we of from led capital into can CapEx this out next longer several year bit in has and productivity a and So to prudent debottlenecking of which deploy different work more how be or a standpoint. push the done we've work lets we because so really areas, us

Craig Ellis

last into that picture tying that weeks. bigger of some just were then within And couple items the announced

talked there room much you how see, efficient potential some on identified how the focus And also more at is Griswold a bit at a you Colin Can to in margin that business for drive become optimization rubber comb is both level then through carve-out. and call-out Company's corporate them or your The to business just it's not then to nice other portfolio optimization bit producer? manufacturing today. view that the things, like things to? things little level clearly staff So about much either to you talk the little automation the really further there, back but two and want for may the a that high there be about

Colin Gouveia

Sure. I would a at look strategically what our say portfolio fits taking hard that and doesn't. what we're always and

that us a with So -- for really markets slightly pieces, quite rubber foam capacity came the line, it was entree urethane because different good with needed business technology. was a actually was acquiring and at Griswold one different into it which polyurethane end example two few time of us gave also

very Rogers the So rubber more not that piece lower of growth, beneficial a of the acquisition margin, to was we The Company. line realized a slow is quite business.

made to we decision the so exit that. And

did at make grow out to just areas, in we in get terms but decisions tough And the this we looking elsewhere, to with macro we're set in with current costs We're the future. of very certain very feel some moment, then comfortable taking our portfolio and satisfied environment. aligned with how

added eye markets In like needed certain also on growth. some example, we kept actually course, our backlogs end have EV/HEV. to support it headcount an Of where we've into we for strong cases,

to good innovation, this good of fact things and with growth think, the we're you balance long-term. I short-term the we that cost to the long-term So trying company out do sort are have and manage with future. with for a really But

always there's decisions. some further, and we we're We're quick make is, we If very say structures, a can would I look flat things can options what develop right. So nimble company. at,

what's our of of situation, attention in we're but this I appropriate done next. for we've think terms what paying always course, current moment, do at we should

Operator

at from just Securities. one popped request additional appears We this be to moment. in have time. for Instructions] [Operator Moore, There questions One do CJS no Daniel

Daniel Moore

you talked are balance allocation buybacks given near-term, move continued priorities sheet, very about as you capital How cash holding for the and the about firepower additional M&A. enhanced Obviously we by thinking CapEx, capital breakup fee, flow re-deploying obviously but strong forward?

Ram Mayampurath

structure So allocation us. remains capital The the has not the changed really strategy same. for

do organic opportunities. of be to debt to want focus. X% that revenue, flexible fund will kind possible repay our for our CapEx We any our now is of our as inorganic balance sheet as will probably keep X% to and growth, We continue primary

Our balance continue repay there. buyback sheet have remains our the no be continues will debt very at strong, then share priorities, look and opportunistic that we to we to but change right the time, that at

Daniel Moore

a just Griswold, run about of from And rate million the $XX revenue. housekeeping divestments

The model impact revenue should additional other about we we streamlining thinking be actions, as any XXXX?

Ram Mayampurath

for to 'XX nothing yet model. yet. No, Nothing

Operator

Next question with B. comes Riley Ellis Craig from Securities.

Craig Ellis

wanted I the up groups. follow couple product a to on just of

through Defense. of just Can starting and you provide in sense couple think market navigated pressured, in more either a whether quarters that of of, first or any what I color terms you Aerospace where have off are you're seeing supply out and cyclically been So with chain bit there? as we just any might we there for still headwinds little those where had a XXXX, whether

Colin Gouveia

the several the COVID we and will has our probably it drives nicely and international Craig, We've increase come year COVID, maintenance, bigger we flying. along due tough during strong a very overhaul was continue past What is say, coming I one also years flights. and would strong quite back strong. is, and see that when precipitously business price repair in good And was market that seen was the ago that not no being But Aerospace around dropped it what again a for see then since and and in this there particular bounce that does quite to slowdown. year,

those in to We've our different side, going for some of for give we the solutions satellites for continues us a participate more high has circuits of defense business high-frequency in business, and year reliability there. segment is with are content Defense consider increase you them details area product lot radar that we'll well more of at spending growth on got and the particular still us. because but the us. quite you markets our Day. later actually March give been context to or and other and RF good key so toughness for growth We on are us then in durability a Investor go-to in our in that terms that our and and laminates really products, and defense a and end used And

Craig Ellis

real related defense Colin. a and the end less to focus that markets. other portion, I the It's commercial get It's anything portion programs there than the One up it you the nice of notable appreciate to split question any could demand XXXX? side the as look ahead to see be just with years XG, infrastructure but meaningful out ago, of was or we on that sequentially that either between

Colin Gouveia

looks wireless about modest, base build we as and at looking less. more of X% from the for these indices terms or flat as said, stations, us a The outs external maintain The infrastructure forward some who that agencies, we've market. relatively projections in is, publish view

say key for so in have some would forward. OEMs relationships good we going single-digit business it with and the flat, us. I for And of that us range a It's should remain

Operator

back Thank you. remarks. to management no time. this at floor hand I'll There for are closing the further questions

Colin Gouveia

everyone look everyone. at Just want Thanks to terms forward to to say the get end the targets thanks everyone to seeing Day New March the of XX month us And beginning joining for our for restart our in XX. in of Investor really joining. in York journey and City. I XX, at We're rolling of

Operator

concludes Have this parties disconnect. Thank day. good All a may conference. today's you,

Rogers (ROG) 28 Feb 232022 Q4 Earnings call transcript