Air Industries (AIRI) 14 Aug 242024 Q2 Earnings call transcript

Hello, and welcome to the Air Industries Group Second Quarter 2024 Earnings Conference Call. [Operator Instructions] This call and the accompanying webcast may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding, among our other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations and are subject to a number of risks and uncertainties, some of which are beyond our control and cannot be predicted or quantified. Future developments and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will prove to be accurate. This call does not constitute an offer to purchase any securities nor a solicitation of a proxy, consent, authorization or agent designation with respect to a meeting of the company's shareholders. At this time, I would now like to turn the call over to Lou Melluzzo, President and CEO. ahead. go Please

and The Joe, are all joining for encouraging. Thank for thank the today. results XXXX second us you, you quarter extremely of

We an which in the are a QX. over loss was profitable for improvement quarter,

we for quarter revenue achieved significant compared increase profit. gross we the increase year, had in a last While X.X% a in modest to

For to QX compared the nearly or XX% quarter, gross $XXX,XXX profit XXXX. increased by of

profit down was perspective on our results, by Just higher $XXX,XXX, was in gross or to first some give than $XXX,XXX while QX XX% nearly quarter. revenue the

gross to timing that mix, on important factors, Our profitability margin It understand product sales as and increased a several XX.X% to on such XX.X%. from steady is flow dependent highly material. is raw

from the our resulted ramp-up product, gross This enhancement the rotorcraft margins, on been profit company-wide months. with benefited fruition expenses profitability. several that the closely a and in we initiatives have increased return together over to working of Connecticut Our several of last operations controlled

In followed to as earlier reflect our we compared QX. to addition, some quarters, expect QX mention want a softness stronger I by that to

Now turn let to bookings. me

Our order QX million $XX.X we in XX% strong. flow be $X.X book-to-bill level We growing achieved X.X:X. to from the QX. achieved Bookings or in million, a were of continues ratio

funded Given significant milestone. a is at our was the bookings, $XXX our million, which backlog slightly strong total end over of QX

Our backlog goal here. is to the grow from

From and great it Show. to show defense I aerospace perspective, attended to the over want a Before brief exhibit International Scott, call visit was show. and key a primes is trade and for is our The turning to manufacturing. by summary the provide our Farnborough industry Air a the of recent

the old We of solidified full. state we booked and great set have met both and was customers, to things and schedule come. believe new with relationships Our

a bit some over who Scott and and opening more answers. discuss call proceed. before questions Now the our XXXX you in to be back add turn the let on detail. closing may I'll outlook will results Scott, me the to to commentary call more up specifics

Thanks, QX the about Lou. I share this enthusiasm results.

me of a first XX% the for gross results the Let represents our higher QX as XX, net that second The compared which XXXX. X.X% improvement This operating XX% directly XXXX, XXXX is or quarter. to in Consolidated quarter million of and QX June $XX.X $XXX,XXX increase approximately than detail. were we million. due $XXX,XXX achieved the or to more discuss ended than higher $XX.X in sales increased was in margin,

we have. would confidence call, our and margins last that improve they expressed During

Although basis quarterly fluctuations may still on show year-over-year margin occur, gross improvement. to continue we believe the will a

operating on We continue expenses focus to keeping controlled.

less X.X% they or quarter For QX XX.X% million, the year $X.X second were than lower $XXX,XXX which quarter, or $XXX,XXX than the second and XXXX. of prior was

of and loss compared QX a it increased $XX,XXX As operating income operating be close modest in exceeding an profitability in controlled expenses, to of just of a XXXX, operating income QX $XXX,XXX XXXX. result $X.XX to of million of

quarter has million. a to we increased $X.XX compared share bottom and $X.XX $X.XX a in XXXX, of share income of or a the the of net loss in had net loss $XXX,XXX of QX or per line, quarter, or From on income Finally, of loss $X the $XXX,XXX $XXX,XXX by 'XX. a share negative second our first a to over

to included GAAP our EBITDA XXXX, $X.XXX nearly was was the of an months of prior release evening. that EBITDA detailed year. June improvement from or XX% ended our was For in The reconciliation adjusted million, X press XX, issued XXX,XXX the last

In expect negotiated we this amended report am favorable compliance and are in these credit covenants. our As more and filed Form with that in compliance. pleased this covenants earlier we X-K I on regard, year, facility to to remain

term of on timing turn was our accrued items expenses our for million few increase amendment increase. agreement. a our are This on with an monitoring highlight about closing other to quickly payable completion reflects $XX.XXX capital was some the which X% remarks by working Lou? total to are equipment lower, an up the sheet. the made Lou the $X.X as call a down accounts XX, to that will Connecticut me slightly solar accounts Compared goal inventory installation Accounts and million. And unchanged, our due and a levels to banking that, debt back million, loan balance update let XXXX, with is improve December XXXX by recent capital of $X.X but receivable manufacturing to panels I requirements. our such at with working carefully Inventory our to in our is facility, and essentially outlook. business Now

you, Scott. Thank

track growth. of significant second year. flow XXXX fiscal With half XXXX, strength, strong feel last about an our half. First and to year quarters a from be on confident reflecting order I of under our fiscal improvement is belt, X

difficult orders, products, Although the timing EBITDA raw target finished to net XXXX being in in for million, company our delivery sales better for XXXX fiscal at and adjusted with it than be times significantly remains materials $XX of of XXXX. to reaffirms predict the least

only would expect end to better. With working even question-and-answer in a we XXXX, If portion. opportunities these to XXXX, are of but closing our soon. booking the our successful before the are not we like growth I open call fiscal achieve that XXXX number Additionally, will finalize of on will Joe, that, in opportunities large to we be we

Instructions] first [Operator question of from the our Howard Taglich with comes And Halpern line Brothers.

Congratulations, guys, quarter. fantastic

programs that for than in little are in QX that new there might I guess, did margin in terms revenue revenue just or that starting, QX? will Is of QX QX. margin gross You And stronger of a terms and mention hamper be briefly bit?

sales be we as has things going It probably which is lower fourth and QX we are as slightly we do combination lower as that with obviously said, lower margin well, be to have laid so Howard, confident lower and you margin will pushouts the customer year but in -- quarter. that around out. we'll nature, some the will of turn to give a dollars, percentage which, of

material flow. timing The very for the of the orders thing balance It's is full, of positive the year. pipeline and

Okay. Are that that additional in-house spending create you of Or where are you'll to capital to projects is end paying an some coming there type doing efficiencies? debt? any start down

this came new been purchased with the retrofitted frugal We very Machines haven't -- well, in Coordinate We -- we've spending. we this capital -- early year X we year. Measuring

and up to than X great need machines. the it's capability, has -- we you think But spent for a [indiscernible] $XXX,XXX. what tune machine in And have there it It's buyer, this to X business. century. the $XXX,XXX been that's machines about bring that, I to in that had the while shop it roughly of XXst we other old per

IMET, So of brains -- new is potential looking new orders We're our things, mean basically, these and in we controls, them. pipeline on IMET. reap will benefit I the

to equipment. this we industry, things don't to these machines If some and caught a had So work. to we're out projects to that year this able We fortunate you're short. wanted want enough getting get and because produce up to be repaired sure make in we win coming of

the prepare for coming we ahead have down pipe. money potential floodgate the been so new of spent And to and opportunities

potentially they that those are brand conjunction opportunities, new, the will and in -- old to air you have that programs and customers, similar maybe they ongoing? terms new? the said, new are other too, opportunities Okay. of as the be in some with And programs but are of Or show, those you

other opportunities of in Industries light It's there's roughly XX% and truck. have what's military the Bay facility that's here happened the our on programs. thrust Air commercial, the on all X side aerospace in lot But commercial else, side, is aviation which more Boeing, and York. a Group Shore fence New That's everything programs. of to in commercial Predominantly, been we product our

frontier pursuing It's a we're approach Commercial more same our and We us it's in both be same York. lot materials. the New new work. the do it's So way a in work. for here the Connecticut would same the equipment, operations. commercial commercial But military to relatively

with lucrative and past just We military That's issues secret. But were hasn't nothing been had the in as the based. that. new So It's of know business. to all no it's in that with commercially despite and Boeing are programs. work. lot COVID XXX people they've new a that not us. the these And We're XXX other the as a commercial it, all that

So that plan as we is companies finding such on taking for we're market it. applications, the commercial looking ours and of advantage for

Melluzzo questions time. are turn for closing at back There no Lou to remarks. further the call I'll this

there's to you progress and or you call. call your for Thank in that, no on look on may call end again. all Air Group. We Thank on taking next terminate for today updating this you be to or Joe, with Thank if you call. further you, time questions the Industries the interest our anything, the forward Joe. the

concludes This today's you. Thank conference.

this your the Enjoy You may rest lines now at disconnect time. of day. your