RBC Bearings (RBC) 19 May 232023 Q4 Earnings call transcript

RBC Bearings Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder this conference is being recorded.

I would now like to turn the conference over to your host, Josh Carroll with Investor Relations. ahead. go Please

Michael Good Chief for operator. conference thank for Vice Director, Chief are you With Executive and and Thank Daniel President Officer; Officer; Bearings morning and fiscal us Bergeron, Dr. today call RBC on President earnings Officer. Chairman, XXXX joining President, me Chief and you, Vice the and Hartnett, Operating fourth Financial call. Sullivan, quarter Robert

more company's be the release call, Act today's of you impact me and the described statements the detailed made that under could let refer We will are results of operating These may in future Reform risks of the beginning Before discussion differ those that press and Private today with to to due materially you of Bearings' a remind recent the implied the a RBC and forward-looking greater detail also Actual filings Litigation factors. made factors on financial results in are condition. website. from some Securities or for the variety projected company's SEC XXXX.

reconciliation release addition, on is GAAP In company's is financial the and website. available of part and included as information between the non-GAAP

to now Dr. that, call With I turn the Hartnett. will over

last welcome an Thank were quarter period sales of for increase you, $XXX.X million to fiscal of million morning Josh, year, and for good same and the XXXX Net X.X%. all. the fourth versus $XXX.X

products of products the XX% For XX%. our industrial our represented net of sales XXXX and fourth of sales aerospace quarter

the in $XX.X the year's compared compared year. of Adjusted $XXX.X Adjusted million last Adjusted of XX.X% and EPS same a last sales Gross million, for sales, of XX.X% $XXX.X and period last at with or million share. $XX.X net to XX.X% of -- net million last respectively. net period $X.XX XX.X% margin to sales. year. XX% was $XXX.X sales EBITDA for came compares the was $XXX.X net million, million, income for This or operating XX.X% was quarter same

On from businesses, combined the distribution were latter high the showed during sector growth the The for rate somewhat leader industrial Overall, single strong was OEM period, year. comps sales was last expansion industrial our industrials low-teens growth rate some by Dodge. up expansion a sales. X.X% mitigated the Dodge on digits, and X.X% with against Europe. a with

with XXX, On builders continue overall, and here AXXX aerospace their as support myriad commercial XXX, supply a chain and in XX.X%. defense, up saw for up of aero large the support principally, of jets the business and XX%, well XX% needed as of AXXX and of rate be expansion other of and distribution Airbus producers industry. a OEM demand Boeing we plane The production to aero drivers to subcontractors and

to demand products Additional support were we space new our of felt for in. volume increases beginning saw [aerotaxis] initiatives for -- and to trickle the field from

As they to double-digit demand, build many aggressively mentioned in previous as to quarters see continue rates. come creating for expand increased plane the growth to calls, builders we expect from

statements. well to continue We we support resources increased expanded these rates, work add expect as to planning and as

XX% saw RBC same expansion X.X% growth period, the in for an of EBITDA adjusted against summarize, To of revenue last year. and quarter the

first to $XXX million of sales between million our expecting XXXX, and somewhere are Regarding be range. quarter $XXX we

over the call now to And performance. more I'll turn the on for detail financial Rob

compared million year. quarter period the the fourth SG&A you, Mike. of to same XXXX for $XX.X for last million fiscal Thank was $XX.X

sales of last for year. quarter SG&A net same a the to As percentage fourth the XX.X% XX.X% compared period was

expense. million of sales percentage first is a of stock-based to million including be XX.XX% XX% net as forward expected and compensation to between quarter, the of $X sales Looking SG&A in approximately $X

quarter of the year. same to compared $XX.X period million million XXXX expenses operating fiscal the $XX.X last Other for for fourth totaled

of amortization other 'XX, fiscal million million with of million of items. assets, our other intangible South of quarter fourth $X.X operations, costs the of Carolina expenses $XX.X and $X.X For associated restructuring operating included

operating of of primarily with XXXX, other and million $X.X fourth quarter the fiscal the $X.X other costs $XX.X Dodge expenses million of million For acquisition, of of associated consisted intangible items. of assets, amortization

was million for fourth $XX.X 'XX fiscal to same fiscal the million of of compared $XX.X income income period Operating the quarter in XXXX. for operating

of Excluding XX.X% approximately operating of million offset Carolina South for of costs $X.X costs, $X.X fiscal $XX.X sales of associated adjusted million restructuring with fourth or was million related the by income operations our quarter XXXX. acquisition

million quarter fiscal $XX.X approximately income operating $XX.X acquisition XX% costs, XXXX adjusted of sales. of fourth for Excluding the or of was million

$XX.X interest compared expense quarter of of the year. million XXXX quarter $X million of for associated including approximately between first deferred the for million costs amortization same fourth $XX.X fiscal period of million million, last fiscal with and fees. $XX the the for to expense anticipate XXXX, was Interest We financing $XX

of On last reported million, quarter $XX.X common million period stockholders fourth was an for fourth last common million an was the $XX.X quarter net the basis fiscal to for $XX basis For fourth available period income of compared compared million year. to year. million million fiscal was of quarter income net the for for period of Net million last to to income for to net year. fiscal available year. same the for for fiscal the same million, stockholders the XXXX, adjusted the adjusted compared $XX.X $XX.X On of company same to $XX.X 'XX the same XXXX $XX.X period XXXX, fourth income last quarter the compared $XX.X

last quarter per fiscal same the to share attributable for per same earnings per the share attributable share compared of stockholders $X.XX stockholders the was share period $X.XX year. per share fourth was $X.XX last share, for fourth 'XX, to $X.XX an to common fiscal earnings per quarter On the for of per Diluted to 'XX period year. diluted basis, common for compared adjusted

of the the million of same year. fiscal from for expenditures to operating cash capital were in million period of to Capital generated fourth $X compared during the activities the cash period, leaving Cumulatively, $XX.X company quarter to million. fourth same the $XX.X the in hand paid total compared quarter XXXX, down period loan. as on cash the 'XX, of was last and expenditures Turning term loan since $XX.X paid million flow, million in for now April $XX.X million $XXX million year. we debt $X.X on XXXX 'XX, last fiscal of November $XX billion X, We have term the on

call I the to would question-and-answer the for operator to now turn session. like the back

will Our from session. the we Morgan Thank with Stanley. be you. conducting Kristine question of gentlemen, Ladies [Operator comes first Liwag and a now question-and-answer Instructions] line

significant highest printed what of is the you've drove mean, talk Can from if about I margins, million already This by guys you had, left X? And were already last to per much XX.X%. to margin you quarter, year improvement? your final to is million is this at not synergies the How How Dodge. Looking at you this year $XX from you $XXX highest. target ever get -- had of one the synergies? much of

then had And to COGS in side, pick little projects working a Kristine, start that on margin think it's months, the on on synergy Dodge, for mix right their XX that Since longer-term next for a will the We our you're the some to kick the we're of side percentage up slow again at owning added of in. side. quarter. contribution. will And gross Dan. I over X points synergy the time, period good we've this

little we're like I where our of line to On on the side, top think be target sales synergies. a behind we'd

on products sales think over as teams that get to world. we we have And RBC upside Dodge but to I our to takes target X the still up. good around years train So other's some that's and to of both well, it each X trained next working the to cross-sell everybody time get sides

doing thought were able we're going to of IT to on the And also. where to their of and that. I'm them own Dodge and getting picked ABB's we up on back IT SG&A, move of be. were we ahead savings system I my systems RBC's group on off think definitely We on

synergy up we some lay there. picked so And

happens. can are you Hopefully, real But Rob year than we integration So going for ahead that. this with year, we would what think into I Dodge. of a our guidance we little definitely thought where coming the QX. into We'll better be gave of we see first do

Okay. to And how Like run can much -- of how rate from the much million, million been on has us up been synergies $XXX harvested? the already that $XX of what have just already then you a following just give done?

rate Yes, $XX anywhere I'd say is average, is from that on to run million $XX million.

aircraft for terms commercial the step-up in Mike. you then production significant And Great. rates, talked aerospace, about of

and then the XX rates that around you level set hold in XX are month terms year-end? so on by month per XX discussion production of they Boeing MAX trying this can above you the as before moving us sort AXXX? inventory you the And now are? the is and summer there's per of tracking? AXXX Is to there provide where to where depleted get rate And to for Is well up to could you that you're or and get towards any ramp? where color you on on as you Are needs XX, XXX some get of also, to below that in

Yes.

First, let's -- those answers. of lot are a

see. Let's

they to a show and up pretty because do relative In planes all, they're exit buildup, they determine We terms going January. what can't day themselves We and the of are that chart at if their and their closely. plant. have their then XX we at of where do say, six hardware of look look, monitor to it as we XX think bearings want are. go chart, going content they the have is are to know And are ahead if build or time skylight and show year that based do planes XX months the -- we to that our kind you they're product producing to planes, can't first in of to Boeing's and whatever, the we to to, they up we upon going we they're

in chart product So in we what the are their lead have months our set determine to of time on six production requirements that by offset months. kind six available order and

aligned. pretty we're So much

with result correlate We in their kind what know done rate And are of of back that well. cadence we and calculate very And -- to completely what they do is, can that buildup. a work We've per as our and mix sure is. mix our per a their knowing plane lot make plane they rate we're of correlate? they

in a there's a production Now Right to XX% us order in who inventory for God, year, finished material system. stepping make because the inventory now, would have from say, big is system to I like in raw a of it the goods. company terms rates, up thank actually

squeezed much the in is XX the the inventory of So meet system system. know we we're going expectation. by the to be their is end that pretty and we of best And whatever for year, out the to can rate doing XX the the

So we're about going to be December. by commando

have XX for material. production And aircraft at not XX produce we're and well difficulty the going Lead so to beyond. that weeks these to are steels in are time very And their is rates, the weeks and certain. deliveries after completely doing December

in expect it So that. something XX weeks to maybe XX in get get weeks and or you you it like

going are in already steels only how difficulty So aircraft the industry. And are problem specified alloys available steel that all. other use. but steels availability a determine around, structures important in all the some used some have there's and they're I have not steels for they're think to not people that to the and the And aircraft highly for bearings, been is substitute way at in to

is an the with sourcing? that uncertainty so Mike, in to that . agreement are in considering a or production fairly could like seems that volumes help that guideline. Boeing a mean And have over deals, these input master I of master rate terms Airbus important there agreement

some We people specialty them other the are, talk not people produce the producers making sure extent, what to make. to chemistry discussions, steel And needed. the to I'm unwilling just have we all time. same this

them of the because been restructured. them have bankrupt of situation Some in too. bought have United Airbus of this gone or States, and exists just this one Actually, and situation

something -- it's that? that think I what's So

Mike. Sorry,

do important increases? this two, that that the got So dire really the uncertainty, gets with massive How resolved? increases these And us describing want to in XX% think we three environment does seems are to the production you OEMs ramps. you're input, at this how we've years? risk ahead volume XX%, put a I mean of see meet and rate going this for volume fairly rate those

needs resolved the It on to certainly some substitutions alloys needs gets big and resolved is exactly how rate in is it be and production there to consideration some these a increases, material of design. it be these for

do that. design. can't -- we That's and And so Boeing's

their engineering time to to to modern So have department are available. provide they're and going double materials that

Alembic of come with questions next line Our from Skibitski Global. the Pete

of talk also about just and these Mike, including in one you Or steel nickel strictly alloys, is are alloys? alloys you When alloys? steel sort steel and it clarification. And aluminum

And it's do I'm mean, and don't talking of nickel steel are have that's -- have But I thing. Well, manganese and and chrome aluminum have, and that it's the about other the yes, it's we it's worry We that worry. steel. but alloys. sort steel alloys people --

Okay.

And line to in about Okay. just guess top wanted I I Got quarter. it. the ask fourth the

You guys beat surprised something handily. gain pretty your maybe share revenue you Was market a or particular that else? a there guide own or there segment

the Well, -- really of project us said hard they for it's I revenue an book does. don't conference with like I RBC call, think in really work as -- last of because the rest to Dodge's order

a book. year order backlog So in RBC of a has

in So generate going for for what our we're we're confident to and very to outlook revenues. we're very going what's -- produce

have they me revenues Dodge, where is to much model they're going GDP-driven. to a be, are you you sort business going the be. tell what mean, With I GDP different what Dodge's and of I'll tell

in we anticipated than our had stronger So to be their strong. and last it business continues did call, was we conference quarter, particular this when

that? share Or just are you've Okay. right it where stronger right? quarters I'm And wondering you're for but than of you end talked are for there gains like below actually about now gains, I a all? fair. as Or at market Europe couple in there's being to And guys row, market out with softness, mean, things the That's that I'm well. now? offsetting just point, if of the might So expect ISM market kind seen PMIs pricing and PMIs are a seeing of market you kind weak softness you XX wondering,

we industrials there's some the that's lot and our And are good. is industrial soft, right? but as demand consolidation steady is other market-dependent. -- level it's mean, it's very gas, -- of what creating Infrastructure is very Yes. distribution these it is as sure a on dead. end of are end -- are I'm these good. Well, surprisingly is on despite that markets not you the the was breezy day end in now, last year. with the strong. and But in Mining the is Semicon General it's and very there's -- serve good. problems. our industrial if start Aggregate very these very peers, news And service is going the the hand, market-dependent, markets And I that strong Wind business, right with it's is acceptable. and and economy not -- oil very doing. is so good. Grain very

appreciate Yes, the Okay. for and one I Last color. me,

lot also -- You grow guys plans. a talking but have you you've defense been year, additional to talking expect this about been

takeout kind 'XX? a CapEx in that I of do just pure of for if your Carolina. cost how a does up kind just projection all did roll You not. restructuring into or fiscal that don't was South know But

Yes.

be X.X% to think that I'd than of I we'll that. the make now on X%, bulge if There's in right range. revenue it surprised bulges horizon. be a right nothing more

Okay.

And South at think a was restructuring, the about to that Okay. How Carolina reduction pure just cost Dodge? that?

legacy cleanup as up kind level of It RBC there. well as some one down our a of was Yes. at clean just of the Dodge combination plants,

ordinary. So nothing out of the

from Capital questions with Barger come next Our the of Steve Markets. KeyBanc line

Thinking about revenue XQ your guide.

look single industrial. aero, it another like maybe we'll organic digit for comps, at As I double-digit see seems the for

well? you're see So how about it? second, you is year that first, And is as how thinking the that

yes. and Yes

Got it.

Yes absolutely yes. and

year? the for industrial single-digit or expect you yes that full that's just solid Absolutely growth

I a start that it least be into expect, Yes. at be will strong. single-digit little year, will this better, of untied the be and haven't marine, I getting the knots industrial, sort material be double the a been bit digits, and maybe they are will will maybe not marine aerospace And past mid-teens. will flow. but the to upper certainly And mean contributor, It singles.

sounds That good.

the year, that was XXX years. performance basis which in margin mind, in last expansion points So with gross best of you drove XX

to talked expansion? year. -- this benefit your talked are company margin how target? or 'XX? gross You talk see? starting margin Dodge you FY big about What's the slow you Can total Just expansion that the plans are levers What about Dan through you COGS thinking gross about for for

are you to don't Well, I'd plan. deterioration to going objective I than to can't details point going a love tell growth margin. gross to to of in what see I say That's that to that more have see But we're we're probably point. grow X be. we're X.X going going the any an

the right? should give just What's alone the leverage, mean volume good you I pretty offset?

the we've aircraft which going volume a overheads is of on those better the plants just Yes, because we're cadence. quarter-to-quarter our some of absorption had plants, through seeing slow

that's that so And going accrue benefit. to to by itself is the

On Dodge year, we're variances be dependent the under we hand, and those have they're and business They the upon parts last year. other purchase seem and subcontractors this control crazy is normalizing. -- to -- heavily

On to to of that, to to in-source some and product we're from Mexico our counter hand, the plants. working the United States Mexico other into that Asia

absorption on there that. term, it's in still to that over some absorbable. plants we'll the absorb, the Mexico And learning start-up on but by probably expenses be So have based we'll curve just will get longer doing better

some I year. I same think, be that overall, year wouldn't yes, we going that the saw there see we're last So say should expansion. to

Yes. Understood.

thoughts think -- what is your being cycles, Pete's study What what really do strong through sub-XX general. that's just on Why you the heard earnings not going months industrials, season to seven but for from question you now, on? we you, PMI back in are about divergence? Going or six

pretty there, of know on well, major going we're kind our heavy I of I all in into any and what's not That's a know but mean, sectors way. and question. sort good truck -- I and I study thing that don't automotive

And basic robust, markets food stuffs -- not goods so they've we are our the is moving. in those produce do can what keep But thing. haven't been as see, aggregate economy acceptable, been you consumer to the is

terms -- demand the And in business of beta a across look very we're low the business, -- at in its years. terms Dodge profile you if it's of

and business So little different wouldn't normal -- industrial bit bit a than immune, a automotive I I but think products. the we're servicing say that's little consumer

Our line Fargo. Weber Seth next of come questions with Wells the from

this for Savitzky This is Larry morning. on Seth

the of in change in you you industrial areas Have quarter-over-quarter? macro mentioned customer end concern guys a strength You due of seen strength, guys? Anything any to terms appetite markets. concerns industrial that's to

guess Well, overall about we're thinking the answer No, is I that. no.

seen haven't concern. any We

the think industrial we've I warehouses. of seen all spot side reversal only the soft to the that those decision was build in Amazon's

So at the legs kind business kicked a few the completely of sector, think in year industry. this up been to around able in our that I out it. softened of time last and overcome we've but that And stools restructure

Okay.

Okay. has quarter-to-quarter How they there? with Or the on mentioned bit still And are problem. how pretty chain, is I change supply supply availability mean, still or the is year-over-year? guys? little for a then out tight a you chain, steel loosening you it dynamics up things

pretty it's normalized. much Well,

planning time in for has production XX% which expanded. of For most steels, are steels, lead -- and our the

And to just so lead to expand accommodate we it. planning our time have

to are ahead still hard game. mean problem we're solved. the that specialty be on fine. those to I as are ahead steels, that And those get. that's you needs do you'll of long of And can get as -- game, So still a the

couple of on expect to you a quarters? for And Yes. go that

people if realize intense, have people have there's -- I think I volume And be that profitability that a some capital the they entering things. don't problem It's will be can be alloys, of lot this new these suppliers already there's decent -- got tooled. I produce these think solved. and get decent to but this capital. in market I to will mean think new I

line with Ritchie next Joe come from the of questions Goldman Our Sachs.

maybe especially question line less? is the color Srivastava you where there's when the My Could risk any market of distributor stuff destock for industrial on the And time side? any risk, distributors. on this inventory This color by is destock on provide first industrial more Ritchie. Vivek color on right end happen? at can Joe versus now some And

think far I hasn't been situation. yes, Well, large the there as as any at is, see, we industry Yes. could overstocking

it hard was get I think to materials. during the the pandemic

their of happy and to And distributors so their happy I of to be break-fix. get on have materials -- is our sales to able think XX% these now shelf. most get to from are able put them

So sale needs in repair, in is and something if immediate inventory. they have broken it for a them an it's the when profitable somebody marketplace

So it in they don't like not to have inventory.

to we probably were which our during saw -- it liquidation inventories stronger Now and may But over seemed the completed been that our consolidation, closed that some six that's in definitely was couple a of to place months. drop inventory part from in and the -- December, this last been reason there's some And nine have mechanism months over time we than the customers only fourth a major been XX January anticipated. around period, is we of the saw and unusual was consolidated occurred. that revenues have quarter were why customers had the past combined, stores major as the was

looks are backlog. then strong side you is And on it's pending? the can were and helpful. by super That's of sequentially, And Any indication aero. it. seeing just you side? what industrial It the on on maybe industrial how trends pretty maybe driven your RBC on from provide like order Got the backlogs backlog

was one Most the increase are they side industrial it the defense . driven down in our a of of remained holistically business. backlog. is backlog Yes, $XX strong, a businesses. about, But million, The have Dodge talked we've actually business legacy that orders as carries significant not which sure. of our traditionally from or the because is Sargent business, not actually be thing bad a the sequential

the broadly some the like help gaining traction industrial with just having That's of customers. more just last peers helpful. and of one, with across drivetrain about your bearings portfolio across outside My could talk

of more those what Just to have your counter on outside maybe portfolio probably more that across industrial like drivetrain much side? peers your how any the indication that drivetrain can the share? is products on is claims And of more bearings, some gain of

that systems or XX% or of go sales valves are Yes. rods components I maybe XX% either are to bearings. would their their not our think They're into that gearbox that for systems, aircraft. products structural

yes, so So line. calculations made I about but I'd what say XX% the our haven't outside XX% -- but say we I'm of to revenues extrapolating are those business, it's know I'd bearing the direct

Our Truist. next questions of from line come the Ciarmoli Michael with

the out Nice do is just here. how there meeting like on I mean, said years. growth. margins to aero. Maybe, are results there chain we cases, a year? three mean, stretching Mike, you think at a get mean, we lead access not objectives risk-adjust don't of guys lot in bearing year, a this times But in you I double-digit talk keep for you big is your some if in I I getting to supply? for threat And supply do and how about the -- the that as that look mean risk think you there supply? aero of you executing you I just

it readily materials bearing do bigger than products of Well, -- it's their line for a like supply. widely the of There uses across XX% use is is Boeing, materials X% probably available. aircraft think that our more RBC. but difficult other bearings get. are only not products, I get bearing we for that are structural XX% of somebody than our problem that these And components who more to It's

Okay.

helps. Okay. That

-- okay. you're So

you're So if it's of of on your some tightness and alloys? that exposed, you're X% about seeing where product

X% maximum Yes,

Okay.

called is learning to curves of down conservatism? else phenomenal I subcontractors quarters couple of, about see and the know ago little a we're I you there I Or the down? now out to new is driving to of still calling gross these of mean, the volume first but But to -- And how gross back is anything floor should in some you the think a But then that margins. quarter? know were we And Okay. called you guess, of But what some just read of a some again, just the moves. enthusiastic parts, pretty margins first mean, I going start-ups, and in bit I the got quarter. kind know out guys the you out into? driver? I else step margins. purchasing that is it step

for projections the first revenue mean the You for quarter?

The projection, sequentially what stepping did just gross down margin XX% quarter. to this XX.X% you from

conservatism Yes. no Yes. that's Well, me. a that there. behind role probably There's I estimate, mathematics supporting a believe think little playing

Okay.

about good you to know. That's about Okay. And what talked the synergies.

maybe you months, give you -- guess, you think I in. the when talked we And I million think XX to talk that But said or you source Can is left beyond back color terms in there? did of COGS of $XXX guess Dodge and I is are you any runway next I that much mean down. where going about the could that? about, in-house. kind slowing this so of on made I -- deal, material how supply you kicks

that's we've a beginning little bit only for -- year Yes, that. mean, a I over we're this doing plus been of right quarter. at the a

materials beginning sort of in in of lower-cost we're of made what to yes, volume that part made part the could be support of a some at needs we time, to that in-sourced what chain growth And lot right we be looking So we potential that see. at demands mix found mix, supply of had If or product we certain we got our producing. of that at always areas this same the made we could problems achieved. also, made into that, or had as of that our the be that identifying plants that mix best product order

in-source we we our margins. our revenues in-source could upside capitalize if -- and those see So to and materials,

plenty product Dodge clearly, sort to offering But the of incorporating by And advantage these so take the of in there's of concept. strategies. it's of synergy the upside outside some product

Okay.

mid-XX% good think -- confident And margin so X, EBITDA to if got I of But with look you've fantastic have sounds like I to that pull year EBITDA here. know. still again, mid-XX% and said the margin. mean margins you're That's I you in we -- certainly, Okay. runway by levers and at then COGS. target starting mean, it been kind that

That's a good a goal. do I mean humongous have you goal. say, need what a to they --

way think we're it. towards our I So making

put Let's that it way.

out enough. that marine but defense, didn't of guess I contributor get Fair you I X%. of I'll the in I look not you get the a guess about mean, on some easy down implied question, comps, give Last the being product know they revenues, to talked way. be the subs. some defense Okay. presumably flow I lapping

for we rebound next should pretty 'XX? good in So or year defense fiscal this year expect a

Yes. comes in because its in has for on have all, situation. lot first that. the like at we It it's was Ukraine marine I the product. gets and to be And same of looks mojo replaced. the think track Probably it it time, going of in used the business year It a later key

so will probably at the that year. And start in of phasing end the

of with from Global. questions next Our the line Pete Skibitski come Alembic

the And build maybe probably I me, but yet, of safety some for for is you big ended growth. it 'XX fiscal imagine that up is year guys. guys. a like I don't support to think follow-up data out the is one inventory all some Just looks as stock,

at did if a wondering build fiscal in 'XX. to inventory you it than level Just expect similar 'XX in

Pete, it's Rob.

million. more for than was year $XX inventory the about million, $XX a build So little

the we Dodge, rest Sargent program. Some material The for past, year. of do fiscal we that expect the the marine level the about where, some in that purchase on of primarily. in get business of at was that talked of as don't And I it next reimbursed growth was

Okay.

drove curious. What Dodge Okay. Just growth? the

from you supplier Supply order B, get and A, from it can't chain, it supplier delivers and supplier delivers. B when A supplier then you

like time. are gentlemen, call remarks. Dr. no questions there I to at this closing turn back for and further the Ladies would now over to any Hartnett

again Okay. Well, Good of you to look We thank participating conference you to that's day. the the and end call. our in for August timeframe. July, speaking forward

participation. does teleconference. This Thank conclude you. today's appreciate your We

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