Capstone Green Energy (CGRNQ) 10 Feb 212021 Q3 Earnings call transcript

Good day ladies and gentlemen and welcome to your Capstone Turbine Corporation Earnings Conference Call and Webcast for the financial results for the Third Quarter Fiscal Year 2021 ending on December 31, 2020. [Operator Instructions] As a reminder, today's program will be recorded. At this time, it is my pleasure to turn the floor over to host Mr. Colby Petersen, Corporate Counsel. Sir, the floor is yours.

much. very you Thank thank call. joining and third fiscal quarter conference you afternoon today's for XXXX Good

On call and the its fiscal President Chief On XXXX. the Officer. earnings and Jamison, is Financial third Chief Capstone's release Darren for Executive quarter Capstone Officer Today, Eric the Capstone's with Hencken, issued me of today

conference We our call investor this the during disclaims the contains website today. or future everyone statements update referring want call relations views slides remind revise today, to February can that forward-looking to reflect the to be XX, or and under will events be XXXX. on to I statements Capstone found estimates company's obligations these of section any that representing as circumstances.

reliance involve President go are results turn the in two they because undue and expressed call materially safe to could and that and Exchange forward-looking should from Eric harbor cases, Commission by in Chief today, the to uncertainties risks, refer our set would not implied known slide with cause unknown Officer. factors our statements. and discussion the forth on they Jamison, information note and that factors referring other are, Executive concerning the Capstone's for actual over Securities presentations provisions they beyond to differ in filings that adjusted some Darren place statements the mention these like Please and control. You reconciliations and or EBITDA, on Please when as to I now to such those through EBITDA Darren appendix.

today XX, third fiscal everyone. XXXX. afternoon, XXXX Colby. results us you, Good you our December Thank quarter for ending review Thank to joining

improvement but I now highlights we've like On Go specific I the beginning to your draw X, with would of initiative. Slide X. our events financial and ahead attention outlined EBITDA adjusted item, first through results, business couple some Before like couple getting an turn of events, to run and the each Slide last update into to the crucial on provide recent months. a review to [Indiscernible]. I'd from will key more of the

XX% of most revenue our now increased for months to the cutting the successful $XX.X years. past sequentially quarter turn couple $XX.X XXXX in December ended three following months XX% through for XX% growth our have revenue a efforts initiative you been sequentially are XX% As nearly XX, and increased know Revenue XX, solid for moving $XX.X ended growth from over ahead $X.X three or or our cost to million and $X.X year-over-year aggressively September the we With million results. million million of XXXX. up from showing million the

million and X% the first showing $X.X Additionally, in the new third in sequential bookings million up performance. gross were $XX.X XX% product quarter whopping $X.X a the from from second a quarter up quarter, million in solid

profitable EBITDA or key million is the of shows adjusted of we other compared or ended XX, adjusted we EBITDA, and Year-over-year our $X.X EBITDA to improved this adjusted compared continue drive $X.X this negative adjusted it ended believe, revenue XXXX beyond. September improved three EBITDA, for The months more December months ended march XX% when million of XX, $X.X million for adjusted to was impressive as I XX% three three million XXXX. to the million even XXXX. $X.X improvement negative the metric growth towards XX, negative $X.X EBITDA and December for can a towards breakeven months

XXXX. That liquidity XX reduced The increase XXXX. note interest $XX new X Goldman September Cash the primarily from position. our of year million was XX highlight third I The shows bullet December the to to to $XX at at $XX.X to due with point the million amendment from would up improved $XX XXXX, be million to a favorable upsides increased three on and original a no Capstone’s rate October Sachs term. Agreement million Purchase significantly

is strategy. shows a to a a And our liquidity as in golden strategy. energy evolving note expanded service As energy the confidence our service critical vote reminder, as of

Let's X. turn over to quarters. slide our past to few highlight the revenue I X, On go graphically, and slide want growth

to happy the to is growth As driving in adjusted than revenue beginning profitability. is out pathway year, growth. EBITDA, more I we up the place a On revenue that related sides drivers note accelerate in call, business achieved breakeven have revenue XX% in to despite by sequentially we and headwinds our our as slide a we next highest I this strategic stage am at globally. of continued to the mentioned, say X, and set COVID-XX quarterly XX% year-over-year put the have

we national First sales and internal new to is is global the expect single our orders, properties. these with revenue customers, deployments the Using a to team, of or company. throughout keys one large now historically increase at hotel we our customers. We new win team, trusted and might drive to a where with industrial want customer of that their direct the become accelerating a to greater multiple integration partner sales size location our for

an to rates. programs internal our in pricing national or hurdle key The price to nationally Said to with payback, rates. us internal the customers to is key projects to simple way, multiple together other the we hard accounts. large work products blended is and want site second effort locations, our meet and meet company we account target put required This will all give a

hydrogen fuels fuel a on top Both carbon reduced emissions footprint sources platform gas. substantially technology offer compelling of is our already profile. and third Third, the such as clewd expanding natural renewable to

XXX% to as at hydrogen and hydrogen cost their fuel, or experiencing energy when will Fourth, of customer RNG renewable improved to the and emission flexibility, through tip their customers of respective Both spear infrastructures we carbon offering as remain greater effectively natural energy. resources. Our customer operate at the goal are helping retention fourth in By expanding and hydrogen. the be a well zero footprint green is is using creating near satisfaction. fuel substantial able economy least solution, gas their progress reduce

actively a have quality parts key shots we supply improved the marketing with more goal This digital our of increase engaged our customers. customer We will chain product critical get to new supplier share is these on satisfaction to ensure higher including strategy. new our our with market our

green Although branding supplier we still excellent awareness and solutions, are of challenging. a is energy

geographic updates, IndyCar to distributors but to by around Europe, global website pointing engaging results. Middle footprint. I Eastern was specifically was Some past are new call new campaigns continuing of and least, strategy. and our globe to means Africa financial I include; the the green Last, branding we're we in on third to the now turn improvements our excellent customized ship year. We've to in the no the footprint. will distributors several East. what an added quarter of expand Eric provide details over our process Eric? to over the more distribution expand And

review I quarter our slide financial can in Darren. of on through third will fiscal detail Thanks, the of X highlights XX. now which be XXXX found

well improvement million million to of the three through the a to ended XXXX for of was the volume $X.X was each The Starting original and for today and EBITDA I'm a of December loss sequential more warrants from cash million. year line. Net by increase margin business I the nearly ended operating with $X.X pandemic. XX ended unamortized March ended of million the The total over not rate COVID-XX versus $X.X service XX% debt the can Sachs That the gross fees, to quarter in a going to quarter I primarily Despite the loan the significant with $X.X XX negative XXXX. loss for three we $XX.X net million XXXX of to due Cash we compared $X.X results cost million XX% the increased value XXXX preliminary combined the select the at with reductions the $XX.X to operating of the out million, or XX% increase essentially And for keep have revenue, line point to management million million total preliminary million $X.X agreement on up for December capital that the our in period margin ended XX Operating I million million million This from XXXX. controls working the cost months $XX accessories at loss in with amendment December operating more line ended October balance XX a revenue adjusted a of approximately through in the with a but million results. of XX million, $X.X Slide to want to for revenue consistent last or $XX.X item XXXX. the in XXXX with which of note, to million year December note slide XXXX. XX XX despite point months note results $XX.X XX last sequential same origination negative December the the revenue, run to we is to adjusted highlight on Sachs write-off to Gross parts upsides XXXX months increased X reduction March January impactful. term. three and million shows the EBITDA million quarter $X.X months to I XX, of September includes are of XXXX. Company's $X.X in reduced savings out efforts period seen our manage compared revenue to even December this $XX.X or issued X, $XX significant same want our company improved conclude an to our resulting $XX.X Goldman $X.X on XX three XXXX grow on due also expenses helped for the interest months improvement three our would $XX $XX.X our expenses XXXX, as improvement months note. quarter from up from of reminder, EBITDA a new due million to of progress. and substantial P&L. primarily adjusted from primarily slide were sheet. on X decreased expenses. inventory will $X.X shows a or million every to extinguishment as the a Revenue the from from those impacts $X.X released due This third As on expenses increased of growing X to growth that cost three continue year-over-year million the led Goldman upsize the third million second three margins. year. third, This of flat. since compared and purchase update XX% as primarily the tight December

flexibility the X, for through of call liquidity, back improved to were we to customer in execute the term January much in shares since approximately net common our X.X a million become confidence and With approximately will on to long $XX.X stock increasing today, aftermarket to we addition strategy, Darren growth issued update our million. offering, turn Additionally, under this XXXX partner. to company us an I hydrogen have on greater initiatives. our proceeds our our now

Eric. Thanks,

offer tonnes our expected Part on focus XX to industry. million revenue changes term is reach of in the hydrogen up by forecasted success Labs. the use in slide. Sullivan’s from it. source reaching as need coming billion And gas new XXXX, Frost line well injector product recent Capstone’s go using of hydrogen is with to as more blend $XXX to billion to in tons XXXX. XX% than quickly patent solution double According to we That blend hydrogen $XXX in with able analysis, production million The and up XX% XXXX, long natural our fuel. Argonne economy and fuel in microturbine’s hydrogen currently National Let's from shown react to having successfully be includes to global and hydrogen XXX to hydrogen is & slide as from being that of XX% current a desire XXXX, customers in operated XX. to and up our there is a We

report roadmap stranded critical zero near from is using power XX% Green supply XX hydrogen solutions needs hydrogen footprint sources in economy system XXXX. Operator, objectives. in keys electrons Slide the us, hydrogen. for the reaching open is still carbon green and to to Customers use to production produce a zero energy for One fueled a call of that but years, hydrogen. architecture the not hydrogen an U.S. roughly the the from carbon low how very renewable at economy green shows a is analyst rapidly and by exciting hydrogen the carbon I'd of customers. produced important widely the can for time, reaching The of by expected the available, hydrogen could our grow fuel coming our option making energy this is for up to customers would community. piece our forecasted net country's to from calls recently our This like be shareholders. puzzle the

And is from live. coming Rob, Rob Instructions] first your question [Operator line Absolutely your Brown. is

point Are are this How terms Where as on out? a are business. service point? thinking in And at rental many you? activity? this units kind question energy the rolling the seeing market First is you you at of of how

to the to end year. goal was is the rolled to out goal the our get Rob, by megawatts of Yes, XX

March that now barrel. the We're by be especially rental to somewhere oil Obviously, industry. prices new $XX oil still the seeing over space COVID we're number. in program, and of gas seeing back gas rollout So looking the XX, route. opportunities oil We're the a around and impacted

also good several see rentals CHP continue there good, have out there and well. as We to traction

We probably in Latin in America rentals we'll expand looking have first to the our Mexico, and U.S. U.K. probably quarter. the next the are outside

that quarter; right its -- move to very don't grow accordingly. a looking aggressively units from fleets of think as But somewhat kind to constantly, these to overall of rental the it's for. sign return fast I But us trying acceleration to want one them definitely minimum the importantly, possible. sure going make But to see our in we And term new We to we're in it's as business. it do we're most the So well going sign okay. units as rates get standpoint; of both short year we're at least especially next of looking logistics as rentals. around units. to We we price challenging rental building an rentals, just for the deploying being want

Thank customer you. market market, And of years? do then next the development where you on in? the in this couple hydrogen see at great. developing that How you the do the interest Okay, point see over

question. it's a Yes, great great,

the and was the highway were But time look hydrogen we in Schwarzenegger I be Schwarzenegger think honest I'll I skeptical, and California. here on different. hydrogen this economy, it through first feels

We and seeing green piece are Biden from new with have. hearing a about big the we it push We're they seeing it legislatures, of administration's it that from customers. the obviously, energy

Japan, we units Korea, the of substantially. sold actively that got Europe When calls the kind gone announced and first we've now we in as we has amount blend were going well in incoming a quotes that the fact as Our in in up can Australia, opportunities inbound hydrogen run of right U.S. several

want that a blend. at small amount large customers least So a of there's to on definitely run

to CHP future importantly, customers are hydrogen, seen some of that gas path. natural about asking we've that kind our projects us quoting were More

And asset to or on want can't CHP solution five so don't years years today. That's that from from XX-year now on install now run a even hydrogen a XX blend. they a

see And will more blend deployed so And you the will be as at footprint, get ability a XXX% critical green a standpoint be to long hydrogen I term the least have hydrogen near hydrogen opportunities term. think from there.

we the allow off that's have pipeline, us of some off meter, to folks. behind source. limiting is developed could hydrogen distributed I And think for ground we're before a infrastructure. some think units to the run hydrogen on put the But we hydrogen going assets. at the to other necessarily I We run one don't is factors because are

I'll Okay, great. Thank to you. turn over it you.

your Okay, coming line Amit Dayal question Amit, live. from your H. from is next is C. Wainwright.

Hi you, hi strong performance. Darren, revenue the Eric, on Thank congrats

of changes the talk bit you can boosts Okay, pipeline, the sort distributor any little engagement of sort a and Biden win? about

of pipeline is, of and and during ebbed as COVID, flowed we cover the closures tell down. I'll led Yes, you sort see shut as economies

got the thought coming the it time. and We had we than all U.K., U.S., go week closure. think worse. in on got it shut for down off Mexico, holidays, I is obviously, Italy; another second the then better this the Europe, So

is so us. the subsides, seeing good is done COVID, revenue And the put initiatives from related those to very makes with year us And definitely great I all us. really us. over for so COVID revenue we're numbers impacts COVID it of rejoining really is green think of building, opportunity really administration, green, to for putting which we've highest excited up. this going To Biden the why the confident we're us going to lot we're in good work that as Paris environment quarter in be by up impressive Obviously, the energy are provide anything hydrogen, a energy, for is and for measures efficiency, accord a

in we'll done. excited tonnes they'll or we're we new do we green But the customers over years, get the a years. us of the customers the more for in us know, XX,XXX more And on to we're green talk And year the a what in for out just more is what in about savings. carbon in closing obviously, two you last as they're So tons the about carbon, becomes, reaching announce solutions, to us. valuable going administration, seven probably, the the last last of shortly carbon save looking energy, billion reduction are three saved million

situation. help can more provide the so win is them to customers and save planet save I and resiliency, money, the win get to we a And think

right accelerate excited put and customers but the to going get also economy, just thing. new about measures the is administration place new educate green them the to so help doing And in

do yet? ITC to maybe year? see expect the benefitted Or you down you maybe has extension in the the line, some benefits Darren,

XX%. Yes, positive. definitely I get mean, ITC extension We versus the is the XX%

do. so And those technologies

as a EBITDA So and cell big companies, the for companies. cell But but an us a positive we're business better. plan. a company, a fuel we're less lot is frankly, as could for mover like a it than it's think business model And from not with profitable fuel closer expensive cell lot fuel I perspective. the our

looking is the the for better. think get And without or with customer’s us. reduce I the the to five good really But ITC for think a ITC. I extended, all ways payback So year we're bills longer energy gets and of obviously,

Got it.

one on are in the one last margins stronger I performance, to third side, margin Just the given the gross where quarter, suppressed fiscal revenue compared guess?

Well, I mix. at think think margins; I have at our you look you when to look

And Kirk five his week, barely the days run put product at Petty and shift single can so quarter. team and We out are these levels, operations sweating. a

if at you be when looking the we so And not, not today, we have in three doing shop start if product the levels could that times more.

running strong our So at At we're and XX% drive absorb hard it's margins. that to level, overheads capacity. real

And digit are to as so margins you compared obviously, single our margins and service low that our are know. much higher, much, of aftermarket product kind

we for had mix great standpoint, from standpoint. depress a So a bit a blended that our a product little margins quarter. But does

However, we the tickets popcorn. to have sell to movie to sell

or FPP units there contracts revenue, So getting margin drives more out high more spare parts. and

great to efficiency of business. more see shipping continue product so energy, we And standpoint. standpoint it's And the get the a both growth out there from a energy to booking and definitely,

and today back energy XX% gas you If were in we're XXXX, remember we efficiency. XX% oil Circa [ph]

transition has bigger more market much much us. for huge. frankly, market been that that's exciting And and So a

you so Thank much. Darren. Understood

you. Thank

from live. line Water from next is is Shawn Tower Severson the Okay, coming your Sean, Research. question

that I sort internal is it's you've question a seeing still expect really But of pipeline is you I Hey, early number the by mean, what, as is a looking update, know, come left going the now see? two be, of salesforce. that bit? a larger? would of projects and on on general what had that a you obviously, You market probably size time, about of kind talking do of impacted digest say megawatts, I COVID. bidding here. it things you're what international live that Or I to or let's focus a in are type been bit guess how megawatts? at, mean, salesforce, little follow to chance develop And wanted are and stages, the of know look some in? thanks. And to like little a that you’ve the XX kind then in had I

great, great question, Yes, Shawn.

launched internally. sales referring our Kraus led You're January, to or we by internal back organizations, direct sales Jim in

Fortunately, direct up we we COVID that hit. time by sales the staffed force,

But sales the for essentially the six plan those on we The go year new with I've have virtual. an so sales new of they the and product from And generating one numbers get see that all the we sales we our rest been met shared direct of had person, organization, challenging. hitting can't of fact I customers that hires, of goal is six earlier in direct haven't think, the are we organization, XX% had quarters. internal three through their

from we're airplane. the team who factory revenue on growth product new we to And interface with achieving so direct can't training, the been and for hasn't organization, get can't with an imperson but a brand sales XX%

with more to I the that So when go can some able what see interaction customers factory get they some team actually that better and tells do training, in can person. think you

What with and that. with multiple happy an opportunity about level seeing conversations projects. sea very we're customers, to talk doing So is

Other all and carbon and a CFO base is who's understanding excites some their then business east of locations, what about chain company, In a hotel footprint. reduce based, hotel developer or Caribbean so followed resiliency. reduction, reduction, the cost to me so by most or And to being based or somebody it's able got carbon make and about are. is or we And and drivers California lower have conversation that of cases, how their then New the then carbon them a York chain, to reduction the a and in it's CEO if costs. in really more cost coast a all can of resilience footprint a a important what resiliency in talk plastics and folks operates there dozens

and then and and them and to really partner their helpful what kind what educate opportunities become So on our their partner understanding energy find trying more we the customer with them expert to be to are, how the of out does, them really can more forward. going product needs

so cut And not team, looking that's distributors. the that to goal, out our we're

level local with is to natural make day, fact, in a of the understand and distributors needs these good gas sure we company, boots top to your the building project. that codes, and distributors high maintenance after air work In do customers can how you with be call. one sure show many our everything they but the they've on successful the of the had to to recently at the ground of you be cost boards have [Indiscernible]. We've monitor also the Jeff understand machines to meetings, level, And local kind And the for. infinity we've that get performance sea are here goal getting the start up think that in understand the the partner distributors make U.S. at the savings signed end to a give on support, installed, uptime I

I on think the on excited based start very more you returns But program. about the much months first I’ve when So been nine airplanes. exceptional. getting early all in headwinds the been have excited

this competing you for that pitch, you that companies customers. well as make Are idea potential they're this to their solutions for know with other new suite trying or C the needs. are into concept to new these is provide get power you When

that these customers? if Just with these you're people, for there creating on try this and an understand you're other for idea is

we the and in have idea both Paulson of Directors through our couple distribution door Rob level sold bit cases, the have is that that be little a it's one And can to times they or no C we'll other and some may and to know installations. sort of lot get Board they the this, level we relationship it some folks. Shawn C person projects our Capstone maybe in many a because of we somebody project base running of A globally. talk have a even of

here folks at single XX Capstone. talked California, fact, even hospitals and that unaware they we In Kaiser a to in We've done they had Hospital. were Kaiser

environment a mindsets, CEO different have today, they're CEO the and leaning kind whether interfacing save, toward it's we're there. get goals, DHL going what goals company, it So a them or wanting with, are them, is how carbon just that save all of to to they they improve plastic their their to reduce the of business are goals? of to a different their and on that then different all having small But lot footprint have, on it goals, every their Is that them just the what's save all telling and and explaining to in save of those a Are question mix of they dialogue money places. fast want resiliency to product own and money?

we little design the battery A We and as optimize help performance. And of the relationships or with can grid solar with so lot are so savings a storage, really optimize of we're them projects technology, those explaining I well. doing help can and it's bit education. our their think micro it's their and

single big technology our And so believer, not a is I'm But amazing. bullet, shotgun. a it's a silver it's

So of way But promise. to site. two goal. oversell result for We're C-XX best kilowatt savings, and our them. makes building conservation, storage, energy of right sense battery we mixed lighting, we term efficiency, sure and with sense. micro relationship. if trying carbon of these both the need the right have a energy to financial, amount the product most small to projects even their the that customer for have a solar, exactly make it's large where because perform other it buildings that's and we go the installation, or cases for turbines, goal factors, is And drive that's many say, to results. the a the that a best And your the may we the be pretty metered, long And makes to there's the to want the if whatever And not

portion types with And last energy question I rate an very of a product. that assume is versus my solution EAS its is high that's providing of attachment a part projects, given these the that just of of kind

end I people day, business that of win want and a partner, relationship. comfort win at the Yes, a think the that it's to they've have got

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you. thank Okay,

Shawn. you, Thank

is Maxim. from your live. question Okay, your Sullivan line Tate is coming Tate, from next

thank Good afternoon, Darren. you. Hi,

well gas detail you your mean, You earlier, on renewable more hydrogen into RNG. mentioned went as natural with I as renewable, not your separate

where use getting some for there if at think please? your getting just timeline and RNG are a can update you provide of I on trickier and you to an to but landfills, units are XXX% units already

a it we're years for about. had treatment of renewable depends operate a so what talking is agricultural on We of just kind manure, really manure, and plants, bio have on and a wastewater natural and can cow gas manure, more couple sites. type we Yes, a gas waste, customer Nevada operate breweries, pig landfills sites chicken lot we Sierra great take AmBev. did for with we couple any do of

any So run gas. we bio can of on kind

but on, different us for it's that something a very And gas is run very so just we renewable natural can to do. easily gas

on bio have gas gas. back renewable running multiple We natural and sites blended

a from operation. already to hundreds done type that's renewable understand units in And us it, natural a are tune or gas. sure what us. constituencies us. That's XXX% gas for not we've the technology We got But doing new on accordingly. bio the not leap equipment to for big we've not we running need for a development gas standpoint, any do of it the So of that's make

hydrogen, development not very run developed, XXX% those sort hydrogen standpoint, for that's gas we're doing a off little more containment, a already is becomes hydrogen, new So more us. effort and From injector are, because natural with the that fuel really But is the of popular, can issues engineering they're that a we're all safety, we molecule renewable packaging, Greenfield successfully system and to on the which new we've our around leak. confident bit very already it. we better more again, hydrogen the challenging containing

you hydrogen having effort I the Can earlier or quantify involves it if effort to shorter? …that a the and partner timeline? development I try five is a apologize how year on or side missed

Yes, to no, I about I'll $X It's million mean, blunt. million. be real $X

how to So really want the develop fast product. hydrogen it's we

customer If accelerate market. an big hydrogen for a to came from the we're the wanted XXX% range. to hydrogen effort. in everything hydrogen, monitoring opportunity Most give we're now us a seeing is to standpoint XX% right us order blend XX% the and we'd So development

target. And our that's so initial

the know, ahead So if $X months. market But monitoring XX spend to to XXX% develop we'll go those efforts. But really sure to could there XX if figuring develop us, out in Eric of But with much rolled quickly necessary. we is it's million ATM do that issue what It's we for and to could we the quickly cash the not Goldman the the develops. just need market quarter market, no it development are be or the probably get so really us spend kind XX not dollars. hydrogen we first to hydrogen just of if million that make if Outside doesn't to money pay slowly, $X months know months, could we'll mentioned. spend as we it the and hydrogen, years. out very in an did to it how expense there's during had it you quickly we market It's we three four may the as

much. very Thank you

Thank you, Tate.

The coming live. Eric, question Okay. line is Stein. Eric next your from is

for you on Hello, Aaron year? the Yes, can taking And there what's it's [Indiscernible] hi, remanufactured for questions. thanks on the for impact the fiscal of the Eric, an kind update this give outlook us initiative? unit there What's been?

we've talked that Aaron, question probably haven't about. great one enough great, and No,

in As in of our the keys improving our service to past, one contracts, factory we content. FPP up brought our our remanufactured in margins or is the

into And we a today, lot maintenance new of so parts agreements intervals. service during put our

to we age fleet back have more As back spark inspect cores bigger, bring use bring to to and three up to we'll manufacturing. get clean or to to get the

to to biggest co-operators of set work The that complete with will COVID. kind and They essentially, can in interconnecting Europe So by do to interconnection of today, XX hub. our be local excited finish utilities, XX and work the full up has days, so for we U.S., systems. the we're probably way that next operational today, the engines But holdup do already been up been in interconnect they're impacted U.K. there. the partial we doing test that we're at we that remanufacturing has very well. and utility, doing all fully and systems and we the that as XX% hub U.K. in close they're to are remands And

that tear the us to just remanufacturing scrap Europe good. So U.S. that's help them from keep back no down in from exciting. cores if capacity they're That'll will shipping them and future to double margins. our us That'll

lead time in it both really and us cost. So helps

was impacted hopefully XX. it And by fully we're by exciting. COVID. That's so that by was March Definitely But the excited operational.

Understood. And any seeing then, maybe you the there chain, on are today? supply issues

from we've shut definitely COVID high of We've that impacted had absolutely. for of suppliers has their have had periods time COVID of rates as because COVID. Standpoint, suppliers had down looked workforce; as XX% I've us.

We have our to of if border them. suppliers Mexico, quarantine in corporate if that of visit went we for need key to have go visit we one suppliers, that over the because to we we two we'll specifically restrictions, weeks can't

challenging. definitely obscene is is So chain area -- for supply an will that's focus. I say our of more continued

four best today the years. are payables probably they've Our in over that been

Our cash is position great.

great, which probably the terms over that's best years. five, Our are over been four is

so is Revenue from I that to perspective, our make think more growth And us we're to going becoming attractive. more vendors. attracted

time revenue And more cash competitive, good supply so are which we chain, much next And a interesting higher our growth. shareholders. think with be and will a us from to balance as our supply for and going we're suppliers and standpoint, are more much see going will stable to sheet months be more good of I kind the chain we're with more XX competition, get more our have desirable for

taking for thanks Alright, the questions.

problem. No Thanks, Aaron.

question is Noble Okay, coming is from Heim line from the Michael your Capital Markets. next live. Michael,

Thanks. My you. Thank pretty questions much answered. have been

Thanks, Michael.

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