Earnings call transcript Q4 2022

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Operator

Good day, and thank you for standing by. Welcome to the Ultralife Corporation Fourth Quarter 2022 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to conference like speaker, to now Burfening. Jody would hand over the your I ahead. go Please

Jody Burfening

for Latanya, Ultralife's Financial you, for for conference call Ultralife's fiscal this you morning, Chief on us CEO; joining morning quarter today's call and XXXX. earnings Fain, With Corporation's Mike Thank Ultralife good and us Officer. and Manna, everyone, are fourth of President the and thank Phil

press received The anyone release copy, - press earnings was if to yet the this find the you website has earlier invite News release not company's under section. Relations www.ultralifecorp.com, a Investor you'll issued I morning the Investor release visit the in where

conference expectations. projected as I differ Before like and statements everyone those to call turning Actual materially statements from of remind result this uncertainties. some contain on based results call the forward-looking to could current management, risks various would that a during over made

and include products in economic results key uncertainties global potential actual reductions acceptance that revenues cause of The uncertain and basis supply a disruptions, conditions. related new of impact potential and customers, the risks chain could materially on from differ global to COVID-XX

on cautions company to analysis to not company undue statements, forward-looking statements date. place update company's events publicly The reflect circumstances. which undertakes subsequent the only reliance or today's investors of obligation as forward-looking The no reflect to

factors could report with Ultralife's cause annual that other XX-K. financial included and the factors and Securities the filings these Exchange in Form is on Ultralife information Commission, Further on latest results including

measures be from non-GAAP considers today's corresponding as refer certain measures financial that GAAP. should useful management supplemental considered and to figures. will to metrics on addition, be GAAP differ call, These non-GAAP In management to

morning, over turn would now Mike. I Mike. Good that, to the With call like to

Michael Manna

Good morning. call operating the joining Ultralife's results. on Thanks XXXX QX for

when the battery in Energy call Ultralife I battery ion recently, operations, a have first cell Ultralife CEO, testing, I my three business design, back design, and part since rechargeable Graduate. Institute & pack as background. product the of most over am of Rochester start polymer working for on I development, experience with lithium I've of been XXXX years. some Battery President my of first and being program. new started President everything Technology will from This sales

I while average growth Where and XX% to the and business from million supply top of net to Excell, an navigating $XXX organic line pandemic a led grew increase rate profit through inflation X% $XX chain delivering $XX million, a approximately million, operating including revenue challenges.

and possible business, our life's history business our million. for won stockholders. $XXX conformal been of We wearable markets the diversifies in business I could that energy multiple am products battery, and has growth and Ultralife and my the customers, option with passionate $XXX largest suppliers contract million across another work. the the battery for the strategy our add employees, award additional initial that value the years a value increases and our have about and of

expertise that plans. in communications our unique our customers and need to strength to As matter our assessment, my to we achieve support and subject future for both give and have We battery increase, these experts value growth require. and divisions individuals professionals spend us current

that deliver performance. applications target products superior unique have demanding We that

designs development costs. to can designed product by meet manufacturing resources higher can These multi-stage in consume and that products that nature, are which interim standards requirements, result incur rigorous and

also costs us redundancy to have for proximity flexibility which provides increases in multiple case and does site growth without in allows localized and large us customers of us give facilities, support interruptions. We anticipated and room

sites. personnel the increase across various synergies, implement, back-office to are utilization the we're beginning our There will which of

like recruitment value is brand to and enhance and leveraged be other can retention. new in which vastly a underutilized, wallet and I intangibles have think share We that ways feel help I with

commitments. variable reduced productivity parts projects were drastically to and needed to cost customer shortages and source as due resources to Our pandemic the due part were

reinvigorating Now key we of are process down efforts with secondary components. and these in activities focus cost sourcing of on

now the to to QX Phil turn talk over it will numbers. to I

Philip Fain

Thank and everyone. Mike, morning, you, good

we for morning, XXXX. this released Earlier fourth our the ended quarter results quarter XX, December

the We you few our of the Form can investor also filing website Relations our find Investor XX-K next presentation, and filing in updated deadline. the before weeks which the section our on plan in with SEC

experienced of hard our delays in work. results accounting customer accounting of later finance finance for members our due team, would year-end by quarterly like reporting illnesses our to the closing their members We're practice reporting the than thank audit. the team I to causing some and in dedication

with starting review, million $X.X with on November our CEO, President be that quarter the will present and costs one-time to severance this no cost a XXXX. the fourth paid has will XX, majority quarter XXXX, company's out point of want company. results our one-time includes fourth announced is longer the without I former The my charge. I and with Before to for operating who associated charge everyone in

time the with sales Now of revenues strong of XX fourth both totaled quarter and flow in long segments deliveries order in results. XXXX defense commencements reported of I'll for through driven fourth $XX.X the over quarter increase years to compared million, for take lead quarter some increased million our of an components. the growth fourth reported Consolidated XX.X%. $XX.X XXXX, you the highest by sales Government business XX% quarterly

contribution of oil sales growth solid increased and markets. and in the Excell organic reflecting XX.X%, end gas Commercial

organic total period. prior sales XX.X% year the from Excell, Excluding increased

backlog company's over quarter that exiting prior X.X% represents total million, of or backlog fourth or million increase level over the quarter XX.X% Our fourth XXXX. million $X.X comparable of exiting $XX.X quarter of our increase an the which the grew $XXX and to an the exiting the highest history, in

our chain which During actions delivery address components go-forward in comments, will the internal from our including quarter, manufacturing persisted, delays on shipments impacting resulting increased and our future customer to supply periods. times Mike in lead suppliers his in schedules, both continued disruptions follow.

government increases $XX.X million by of were to of decrease an fulfil net to oil of XX.X% segment compared to & the with offset medical year, increase organic to $X our demand and a growth, market a defense due $XX attributable Energy million million large variance from of Revenues XX.X% comprised XX.X% gas component million Excell and $X in last of shortages SWE's from Battery $XX.X million and sales medical OEM. increased solely in XX.X% sales sales, in device international partially Products

& third exiting segment quarter. for million the over of Energy XXXX or sales increased backlog total our $X.X million, Net business an year organic XX% Products for of increase Battery representing is X.X% The $XX.X of sales XX.X%. this the comparable amount our

defense to between government business was in split strategy. commercial our XX-XX diversification global growth quarter, last split accentuating for both the our defense domestic continued and XX-XX and revenue compared success of fourth for the battery to U.S. compared government was year, XX-XX international sales and the to XX-XX The XXXX sales

Communications fulfillment receipt our large fulfillment an international were of compared Systems spill commence some a of order from components last XXXX. over million to Revenues segment with and to year XXX.X% reflecting the a U.S. $X.X into of to million the $X order large the increase of continue

sales Communications XXX% is of over amount The Systems representing exiting business segment XXXX million, third $XX.X year the XX.X% total our backlog or $X.X of the comparable million quarter. an our increase of for

On versus the reflecting XX-XX earlier sales. year consolidated XX-XX quarter, growth for sales again government the commercial a basis, was defense to in defense split government

for $X.X was profit the over gross consolidated quarter, fourth XXXX the Our XXXX period. XX.X% million up

points was versus the last As million points Energy our consolidated from compared & was a the XX.X%, year. margin increase a third last quarter. XX.X% XX.X% XX decrease Battery gross over Gross $X.X revenues, of percentage for year. year's business Products of reported total XX.X% was last $X.X XX.X% of fourth to million for in basis Gross profit margin a quarter XXX reported and sequential basis

certain the The of price inflation our various was a raw key improvement cost primarily certain few. chipsets including to components, sequential closer to electronic and due components, materials boards, and with customer name continued increases PC metals of matching

gross XX.X% reflecting leading million of period. year For throughput inefficiencies last higher million $X.X higher for to to margin associated XX.X% year, in $X.X profit compared tempered Systems segment, to by absorption delays receipts our compared factory was with the was cost earlier Gross components. Communications

increase million or $X.X due was million the of The an Excell $X.X XX, in compared XX.X%. increase timing of charge intangible $X.X December expenses, on incremental million were severance to $X.X the $X.X to one-time year, of XXXX. expenses million million Operating to attributable amortization primarily last the of including acquisition

XX.X% XX.X% for a As the loss leverage. million excluding million, was reflecting fourth $X.X Operating to operating one-time one-time quarter, basis charge point charge of last percentage operating were compared year. of to improvement the compared million $X.X year's of inclusive severance a XX.X% expenses severance XXX last sales $X.X revenues, an or profit when

a of quarter charge for million, fourth XXXX that the help the basis. GAAP the was one-time acquisition Including to interest computed expense for quarter foreign to or Excell tax compares Our same impact XXXX loss the as per net currency benefit the sterling and the on a associated $X.X net with million share. finance This the reported U.S. was $X.X strengthening $X.XX for losses dollar, pound loss to the $X.XX of or the quarter. per of million $X.X share and

stock-based to as of defined X.X% compensation million year for XXXX for compared the $X the $X.X of including million prior sales EBITDA, non-cash expense, loss EBITDA Adjusted was a or quarter quarter.

working X.X% backlog, proactively service inventory influence we our an substantial $X.X to by or quarter. of Turning balance over the to million or year-end third sheet, $X approximately to XXXX. X.XX. to our represents $XX.X low This million position increase million million fourth remained the compared increased our year. We for with XXXX capital last ended quarter quarter Debt to XX.X% at capital end at $XX.X over of

ongoing the markets, potential we forward, remain leverage end margins, business with dedicated growth our diversified tenaciously model. our our to backlog to actions realizing gross and improve of initiatives full Going

it I turning other back Mike, matter to with one that is will you. there Before share

Newark, entry On our our The daily the locations. January information and team systems insurance our disabled carrier. technology taking question our performance met cybersecurity an morning immediately Virginia by information and security company's security technology XX, technology discovered immediate their unauthorized of notification information including of team New during swift in committee York promptly for Beach into our XXXX, information accounts IT the were action, procedures,

allegedly nefarious for recommendations with February On from professionals our cybersecurity third-party by thereafter, company. recovery the for engaged the received and communication ransomware commenced discussions a Shortly assist we engaged electronic - an third-party professionals claiming with carrier, known response. to the external the assessment, through and incident with responsibility X, attacks, incident our company from experienced cybersecurity response

partial locations, been in resumed of production two The in technology information caused downtime weeks. both disruption and our has company systems its incident at shipping a business restored production This locations. has now and approximately operations of both which resulted

of incident scope review. company impacts the our cost that by other the will continued incident were the other locations normal We is The XXXX including believe any to have affected on these this locations and the do extent results, cybersecurity full interruption related their this and company's not of operations. which professionals business cost currently we to under the of QX, the of insurance offset engaged and

our $XXX,XXX. been of company's affected the cybersecurity to prompt The on paid for the systems, its no to insurance well or the to recovery of review has expected Based as incident, company's of deductible the response amount an or the is is be as ransom third-party. assessment other files

monitor continue irregularity. for to our any information We systems

now will Mike. to turn I it back

Michael Manna

the the QX you, breakdown results. Thank of Phil, for detailed

months. over and margin our working pressure businesses. supply chain For through the executing the last and We've are improving on headwinds and focused backlog disruptions of XX-plus gross inflationary XXXX, the been we

We are continued starting last see cost over expect quarter, some through to pressure XXXX. improvement the but

with backlog of strong piece important on known going leverage can our and business of recent forward, we product which activities. the lean work is mix a components and electronics, An With suppliers. part delays of not shortages, demand existing lower and available cost to did or have we're resources develop all parts supply second chain supply and meet to using the customer sources purchasing

chain supply keep three we on improvements to demand, other as starts cost with variable well pace can these needed important again if Now as work important pieces.

seeing and we increasing costs. First, internally and continuing chain that are cost pressures the with offset labor supply throughout activities realization price expense

horizon inventory supply operations parts our improving time reduces are inefficiencies, end-to-end for planning logistics, adding turn and we reduced suppliers, and will sales to helps improve process working which turns. capital expedited reduce additional and chain, fees sourcing the both This our line with in changeovers customers and resources manufacturing and will our time of both within and forecasting. and extending over internally Ultralife Second,

transitioning activities. focus and of improving to we're new higher on production, aligning process Third, principles volume the launching products our them process and lean capability resources to improvement

the which development, Next, major focus and underway. an organic I'd important of product projects like currently to piece our growth review strategy, is

energy Demand of in continue million and on based high, battery and the variance medical side need. First, develop to customer system shipped business, remains XX QX. on cart $X.X additional we the our new in over feedback

product Our thin-cell to product the spaces. wearables in grow medical tracking line and continues

demand XXXX We for invest in customers CapEx will products. to these by support forecasted our

telemetry of this expect our for increases, may device times. technologies required run We be the enablers wearable use several key

On lengthy the blend in the space, milestone. UBXXXA XRXXXA, our qualification market we this Cell critical IEC product a IoT version of are line The testing product size shipments and carbon first of quarter. is through UL more the XX% which offers serving after production this XX% a monofluoride quarter this going process, energy cell, same to this the commencing

can product customer of continue ultimately added pack and deeper to sales, believe XRXXXA, business where offer be battery custom critical the this solutions will piece UBXXXA multiple relationships. but the and we assembly For cell work for line, value opportunities a

multiple industrial monitoring range across line, an years. chloride telemetry to where for now power have up technology improved We our applications can targeting evaluating product extreme XX and this partners final items temperature

We have launch several we'll commercial negotiations in will that several have XXXX. final new ongoing, products and

power equipment development wearable progress. the is of The continues dismounted advanced battery, make to soldier used which to conformal

currently resources generating being the contract balancing of first for and battery uncommitted with delivery in half internal are back project of indefinite cost-reduction we indefinite the this volumes, expecting testing quantity, article revenue to XXXX. other This with We projects. known are start an

increase. market Our which product of offshore will projects in subsurface SeaSafe, growth various a customers believe gain to batteries as continue applications, be line we initial

as power We capability needed can have ocean our the unique depth operate floor. incredible in while to pressure the products at equipment providing on an some

Secondly, to for on the the orders product system. this in of business the partners this the the year, partners. and are help this add business, our case spaces server and strategic will business. communications side anticipate multiple our through we initial scale testing This supporting power qualification ELXXXX-server commercial We for with diversify production further

on with military advanced We primarily ground continue to work partners power air support to multiple nature. communications, products amplification and see and in

the in space. the generation nitride investing next leading power gallium to are portable architectures in our We amplification of amplifier continue position and

how line ourselves the for we businesses, marketing can position of and expand we noted we As earlier, will are customer targeted capture future brand recognition how efforts, with product growth. drive reviewing which can revenue

will how take the for expertise best on working XG advantage strategy and and growth, that market leveraging on our design in system applications bring Lastly, developing advantage, relationships am I looking and niche us of to electrification capabilities. cell competitive spaces, investments and power

and to invest for CapEx possible sales will this to us technologies We in investments. equipment year allow rechargeable prototyping evaluate future future

work multiple metallic this approaches extrude to expertise due and to front ability have We had cell our the on and with partners' assembly lithium.

mobility could in large electrode have coating in variety thick that This specialized be technology We unique - wide could lower aqueous advantageous or potential rechargeable cells. applications energy storage of support markets. a a the

priority battery Communication initiatives margin for Systems on increasing converting In the main to growth. be profitability, profitable is closing, and businesses year I growth multiple both energy achieve gross to expect scale XXXX while driving back a to Execution improvement. traditional with

this to time. recap locations Phil's locations earlier. We I'd of of event a believe recovery experienced all at and and are at facility the impacted the on take Virginia Beach during Newark operational moment interruptions None other like and our locations comments to the first XXXX. I quarter expenses cyber

containing as And is time this being some at stated, be which still insurance there this gap to the undetermined reimbursement between will time. quantified event,

Goddard background next for of a believe would welcome to I Janie's in look the forward Ultralife's the to attention. her will with Directors. be I Finally, welcome Board Thanks, of history. phase to everyone, like this Janie working position. I

for the to operator back questions. remarks, prepared the concludes That

Operator

comes And Sullivan first Josh [Operator of question Certainly. Benchmark from Company. Instructions] our

line Your open. is

Joshua Sullivan

Hi, good morning.

Michael Manna

Josh. morning, Good

Philip Fain

morning. Good

Joshua Sullivan

Mike, for see And more we as strategic So on what then you've level the execute in of a opportunities you been long-term that now are on see seat what just maybe you couple the I well? externally? you remarks there. the some in initial prepared a know couple of tactical do months, mentioned the might more

Michael Manna

margin Well, where then up to need our cost to needs on key. lean execution We remarks. And We tactical is we get hit work need prepared internal we to initiatives need definitely back and definitely gross just on to activities. in do the it heavy there's to to the down some on side, it just focus execution, lifting be.

- out we the And not what's in get and have the backlog it sight. is It's coming to We like guessing at it it, us. we're need execute door. just

of play we're a relationship a how side, developing lot see of things. still lot things There's, those working. strategy I'm out. the We'll On

Joshua Sullivan

the where you issues, risk mean bleeding help And the then I the far recently? but understand supply breakdown has then out can is as just the customers durable industries been growth as understand backlog. time? of between Got the it. how us And given Any the I the backlog, chain

Michael Manna

that parts Actually, board. the seen of due I to be that liquidated. I'm happy have increases, obviously. supply to supply chain just issues a lead some to lot pleasantly say somewhat backlog across due we've have it's mean, able would we had G&D the Medical, couldn't. But to to times, we've just really we loved been

remain Our gas areas and oil strong.

remain markets industrial Our strong.

lot products have Our good backlog. seem card a medical to of

there's now, declining. one I point no can real to So right that's - area

Joshua Sullivan

have the as capital think improves? improve as as two, improvements? chain One, it some what then far then second half. mitigate chain far might it, in of working see of the do that. there's we And see historical chain supply the as of supply industry got supply some it. you in above up timing general, And been here guys does inventory, far how as And when should material some levels the raw holding commentary, or Got to opening as the your needs as the you overall

Michael Manna

piece, capital mean, Phil working the still and the spotty. But I'll take handle piece. supply chain I'll supply piece, it's chain on the let Well, very I

of some plant, a MOSFETs have seem that components able weeks to are get they to starting things electronics you We they're just parts lot There's other better. in like XX other a opening in the microprocessors sudden lead a where get packaging batteries all and and the on there easier, fire side. and but were some we're them critical another different go like our a have times of up

going really year time still it's when it's give anything close probably difficult get that seeing to QX, But this good it's better. horizon QX looks to normal. So start that you before we really totally and to I navigate and expect even a

Philip Fain

Regarding, working at Josh a million looked at sheet which we is equivalent I we the $X and I it of remember at are capital, end of up XXXX, the I way said, the of here inventory. inventory. in balance the Holy acquisition Cow, million of the with $XX.X is invested have I And small look million, inventory, $XX.X that

in advance. with cash in now have firm So It's much cases, better POs, hand for cells Mike for backlog visibility. the the as we the said, many key it's that in components the and and

want on don't items, granted, just to but at out day-to-day a for least still are tougher the the what of boat the makes smaller rocks components, the things the items. everyday you be We take big life shut basis that

of is focus what products. the our the full throughout So into breadth goes

of capital inventory. we down foremost, the working don't and just $XX million is first want to So starting sustain with that. to inventory bring we want We know - plus

receivables, of at piece look is The this other at look you you payables.

fantastic. We very OEM customers, great, large global, have

chain, by but to smaller chain supply local generally regional terms chain there's where cash extended players, folks, needs the small our the receivables survive. in side, supply large and global supply mismatch a have the We are

doing on. balance it's So constant a we're very best that our

low percentage forward down shrink of to That's that high approaching is with out the capital. the goal bringing day. our turnover. to XXs, and rapid working taking our capital, XXs a working into cash look want sales, we that goal But as We

Joshua Sullivan

price Absolutely. and timing inflation going price you just we continue benefited we about on labor there with forward? think any gaps Is And ahead? then expect cost from to with Can to regard to quarter. match should inflation, this

Michael Manna

I absolutely. & list Energy Phil had there. changes take from in I last and Battery six mean price it, I'll year, Well, the business mean I'll we let go over alone.

and maintain to we're to have in service markets to and provide to increase serving. quality that position We price have support be the and our customers able engineering the value we the

We be period. have to solving

it backlog. always there's a when time between With the our on actually price that, longer-term especially some realized, you increase gap when of you see and

You systems substantially made comm our they've the over the of year, place look those mechanism back and recapture XX to side but risen months, at last costs. where contracts really a the for business, no while in have there's go costs over

first erosion didn't increase on just Obviously, margin. costs, the of So and ship your We're the there's to you when to bid actually not those correctly. events bid, but going next contract a the we it's correctly going contract, an one bid with the that gap next product. between we're then increased we cost

Philip Fain

I shared $XX that We be the on stuff, would and the Regarding backlog the We $XXX a labor stage. thinking that to a of would the backlog that The - just going to the would lot QX. that I'm just million QX backlog overhead went - backlog a from set came call. million in all Instead, up. reduced. backlog shipped be the and the to bit ended little QX go back of with

us, with things to more the look look back came during just at us. add opportunities you fingers of And we portion a for of in million crossed a not you less where a are forward big backlog, coming it's hoping at things $XXX We're $XXX So from more $XXX coming QX. always backlog at what million situation sitting million, that the really happening. coming

a have Mike looking the having automatically cases, designed built many being the conceived in locations market to the various our cart here, you they're works, in And in great able other Houston. and medical the example the because be at. being advantage today's just matter people right inventory alternatives execute, it's U.K. from of that in causes What to the some quantities spoke like to the that a various buy some get cases To inflation of, people to people. our not having to right in is

We the that trickle-down are in of take people to people labor the has the cost to advantage effect availability raised pockets like need things labor population. we to before just because prices direct significantly into that the more of of where a bring entire

alternatives. alternatives, We're we and know at So, trying looking as those be we we we're to about but people. we need smart have that can as this,

Joshua Sullivan

Good, well you time. thank for the all

Michael Manna

Josh. you, Thank

Philip Fain

you. Thank

Operator

One moment of for next question and comes our question, John next Deysher Pinnacle. from our

Your line is open.

John Deysher

for thanks my question Mike? morning, taking Good and welcome aboard to you

Michael Manna

you Thank

John Deysher

questions. I paid, to like had anticipate it good of any second couple it's I'm forward. just event-related into costs ransomware event going hear quarter? a quick the was we further cost cyber there you'll the curious One just sounds circling do no you cyber and as on go be

Michael Manna

a those very, that related a we're carrier. to the out. that point have in good of are we - what We are our know game is right background with experts very the all - and direct what costs this And their closely goal to with that the know for costs, we law enforcement and idea and former know living we're of Our do now the out-of-pocket those bringing at where inside and cost costs insurance working the are. a

by The That's been business we're is more complex now into to it. reimbursement. the able isolate is part job piece working piece. we've the then costs and and our great interruption the outside since IT done QX. easier And the team The get part is back operations interruption those of to the of focus couple on through within weeks business our that resources, the a goal with

So date. occur later - certainly a you could in the certainly the will could see hit at reimbursement QX,

to by the then, cyber would but that we later think insurance settlement our are thinking when more it's to hoping QX we're Now, through, come I reimbursement know carriers backlog realistic at an results, realistically the that announced a the with have insurance going date.

of hold. the is later reimbursement and cost the goal time being in be would the a with QX in point occur then goal at get that the would there So

John Deysher

Okay, it. got

Philip Fain

I with guess just hardening is can thing go to going QX. do environment to we're professionals additional external would again. this would every to on a do I we that that whatever as be the working day, there and occurring only this add prevent and in mean could cost small the we're ever I that from a living our

so there some environment may So, sure speak. making bulletproof, we're itself, around to the be more that other costs

John Deysher

related good helpful. tell Can income then other statement Okay almost There's us And you that expenses quarter? for question. one that's what is $XXX,XXX. the

Michael Manna

Yes, absolutely.

So break once X-K In yes couple U.S. $XXX,XXX, you'll QX, different as in pound the favorable remarks, you'll during the I'll significantly our mentioned into currency, my then down see foreign of And as the be but for it is $XXX,XXX. a which fourth file buckets. interest around we year, see strengthened expense, is will I quarter, favorable versus the dollar.

P&L in for quarter foreign So, we to the do show currency. the fourth hit a

John Deysher

difference to the $XXX,XXX? get the makes That up to Okay.

Michael Manna

absolute and the expense, million. $XXX interest for FX. and Yes, the that's are $XXX the million million for numbers $XXX exactly $XXX million

John Deysher

was good. interest the Okay expense What year? for

Michael Manna

$XXX,XXX. for Yes, year expense the is interest

John Deysher

for show the does up on year? that where And income statement the

Michael Manna

around $XXX,XXX and in going show because offset interest is in the is Well, where it's income of of be by currency. be going expense going to $XXX,XXX up to expense to other income

net just see of a over So $XXX,XXX. you'll

John Deysher

Okay - for that's the was the what other expense year.

good. Okay

Michael Manna

Yes, in goal so absolutely. against cheapest that is inventory just the bringing way our That's and on your goal applying can cash getting question, the see debt the of reducing you down. our quickest, that

John Deysher

- to now? our from any of a That's goal idea that be year want you where how

Michael Manna

off couple months. XX paid a earlier, it we years SWE bought we - when of in Absolutely,

a is debt to Now in the know my three world four-year goal has now, place slightly to period. I extinguish but different right a acquisition is been and always

conditions, economic next hold. we possibly that evenly as can. as our normal under as So that what bring down swiftly - my is to to few But goal to intention quarters we can is the bring have down we'll see

John Deysher

and makes I that luck. sense. good good have. Okay That's Thanks all

Michael Manna

Okay, John. thank you

Operator

[Operator Instructions] no to I remarks. am to Manna, CEO, back And questions. further like closing showing I would now for the Mike conference turn

Michael Manna

great a in call. Bye, All to attending today's day. seeing XXXX look QX, forward We everybody for Have right, call. the thanks everyone. earnings

Operator

And Thank this you participating. conference today's for call. concludes

disconnect. now may You

Ultralife (ULBI) 2 Mar 232022 Q4 Earnings call transcript