Atkore (ATKR) 6 Aug 242024 Q3 Earnings call transcript

Good morning. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to Atkore's Third Quarter Fiscal Year 202 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. you. Thank like Vice conference Investor President now host, to Relations. turn Kline, Matt of to would over the your I Treasury and Thank you.

sir. You begin, may

Thank Chief Financial by joined CEO; you, everyone. Officer. well Waltz, as Johnson, President and and today David as morning, good Bill I'm

and uncertainties results contained factors those like to actual Such which today's we that future refer results take would company. to may from may important Please such of involve press or in statements differ questions our regarding make or David. our that your identify and that financial the actual materially everyone will comments materially. by projections could projections remind We and cause risks SEC or during events performance filings differ Bill statements statements. after I to this call, forward-looking release, forward-looking

measures discussion EBITDA in available adjusted EPS I'll measures. EBITDA In Adjusted the measures GAAP share are share. to adjusted our adjusted any comparable most to mean of are per of presentation and earnings to the over Bill. EPS today addition, reference and or it presentation. Reconciliations EBITDA With and a diluted turn today's to appendix adjusted per any that, in non-GAAP non-GAAP earnings reference means diluted

projects Thanks, third our demand the noticeable in construction summer Matt, across increased not a Slide We quarter, of uptick business. production from offset on flat and in the did the gains were due by broad in Hobart, We most as good to solar saw pricing case. softness These our strength Indiana services mega morning, generally facility. see is construction X, organic large Electrical essentially in and everyone. to Starting due year-over-year. volume was business

more business Volume second due Pricing be sequentially to end grew conduit pricing Overall, and particularly X% also down from than of was expected the selling quarter. year-to-date. for sequentially higher X% tends were concentration large our to where competitive. prices PVC the and projects markets, softer slower X%

our and The were presented were adjusted challenging the proved EBITDA X%. of by more range while sales net midpoint to projected, we initially third within the quarter outlook May. be diluted EPS back in off both Adjusted than we the

overall believe market Our to year. conditions. lower-than-projected softer-than-expected lower the market current to than is slightly We due was flat EBITDA last

trend this However, by major varies business.

an from Another currently primarily Mexico. challenge steel facing provisions countries of limit we of amount place both coming to are between amount steel is There imported conduit are conduit are imports. in meant the that increasing

grown into has United the imports our amounts these increased the volume market within steel the However, reveal statistics conduit to call exceeds has year-over-year, conduit of natively overall acknowledged foreign been of States negotiated prompting limits. far amount This inclusive the These from Mexico reality the action. others ship of a while industry, impact by year-over-year.

telecom in continue market, also the confident well the to in We challenges facing softness markets. in utility and we progressing are opportunities. own operations the Despite our are our long-term in and the experience we are

from meaningfully at to improved shipments solar second our the Indiana of share and We are to Hobart, pleased quarter. torque that tubes our third quarter the production facility

deployment repurchase share million. strategy by and $XXX in executing to year-to-date than during continue capital quarter shares, total bringing We $XXX our our for repurchasing more million the

In value challenging midpoint consistent our new a authorization quarter of with authorization, EBITDA which our our approved to of buyback May, of in the and commitment million Directors capital This want is Atkore the the are I environment, previously outlook. to completion On fourth billion the continued adjusting to of authorized our that $X.X of of that be new available multiyear our note, remind upon $XX Board shareholders a light shares. near we we repurchase in confidence returning plan. reflects everyone market Board's compelling existing the end the as will share program

However, portfolio. opportunities for confident diversified product long-term in the our we remain

product nearly to construction, market elements through results changing across transition. supplier product the to intelligence, to broad power, essential types enables infrastructure a be support all our that, The channel the of hardening while solar of provides centers, and demand our remaining portfolio to call choice over especially for quarter. digitization, those secular portfolio grid Atkore this breadth from David resilient the data With energy turn our Overall, partners. end artificial talk for I'll of trends, that including support

Thank and Bill, good you, morning, everyone.

our a $XXX Slide and was our In X. adjusted third million, We sales $XXX margin consolidated over on XX%. to results EBITDA Moving delivered strong million. were EBITDA adjusted the quarter, of net

Our [ was ] just decor tax XX%. under rate

we As a benefit benefits that in lowered the diluted recognized EPS our of for [indiscernible] and a the Solar our comparison IRA reminder the of adjusted drove third regarding credits treatment expected accounting associated X%, QX of fiscal of tax quarter tax than as tax rate in to XXXX. our X/X with XXXX less the rate the year-over-year effective

the quarters. reflected of first last our from contribute as change year. third in a $X.XX helped tax rather in provision the year, than $X.XX the cost treatment tax lower rate adjusted also X This had the last of This During benefit we changed recorded of higher-than-expected reduction EPS to of we sales. quarter a accounting credit reduction what the

Turning X bridges. consolidated to our in Slide

year, ] core prior of to the [ was were midpoint the guide. essentially in flat net sales while the compared our volume Our at

expectations. third quarter below were results Our

lift saw net quarter, construction seasonal we sales see growth did during a demand. the we not sequential in from the While

third impact year-over-year. $X.XX credits our see reduction of from a growth. benefits Typically, EPS in the net solar seasonality we and was quarter sequential profit from The

accounting to EPS. year my on in slide, our the previous ago change As a added mentioned comments $X.XX in

Slide to X. Moving

the prior with Our year, increased the across compared to volume X% year-to-date portfolio. contributions

in products We continue see growth to our PVC category. overall

as framing expansion. benefit metal to also Our they data from products growth contributed center

has market. in telecom performance by impacted continued year-to-date Our softness been the

earlier, has conduit. resistance outlined met Bill conduit in As steel increase significant a imported our business from

of by portfolio. in this surge the confident impacted imports. negatively our That long-term diversified remain been we has volume year-to-date said, Our potential in

portfolio our our our continue products, growth provide along with model, will that to stabilize. expect opportunities of us markets business value-added sustainable with resilient We as

performance Both strong had in third X. margin EBITDA segments Slide quarter. to Turning the

segment Our margins. to on XX% be year-over-year unfavorable continues basis. achieved Price cost versus Electrical a

we continued addition business, Last in from our quarter. compression, HCP to this which declines also acknowledged price year-over-year PVC that we experienced quarter,

S&I Indiana quarter. EBITDA operational part margins our of bear Our due since under the in first segment continued improvement the in just trend third achieving is at to sequential performance Hobart, facility. quarter, the improvement XX% This

Slide Turning to X.

continue our I'll through some to Bill back We the in With our as talk to relating FY by capital on deployment robust supported to The our balance shareholders. outlook be to allows we our for deploy flow to as turn sheet FY value flexible generation. that, model, us well execute it cash our strength XXXX. of capital to views updates deliver XXXX way

you, Thank David.

Turning to Slide X.

million we we market, trend While than currently environment. will QX believe fiscal the more challenging to $XXX which to quarters due this XXXX, a has achieved over that be ongoing X EBITDA in of overall led pricing adjusted consecutive lower in softness

forward we million. outlook the we As to quarter of are adjusted to midpoint look fourth $XXX amending our of XXXX the EBITDA fiscal

conduit, dynamics SAW addition an have a in impacted Our outlook that steel diminishing in overall acceleration of volume pricing most to issues factors several in or the notably, PVC us, continuation the fourth and markets import reflects of quarter growth.

continue and impacts the pricing imports. overall increasing likely market conduit these Further, of at we As sale continued of the I've conduit softness face elevated are domestic volume expect both into in call, to steel come the with to quarter, discussed start fourth which manufacturers price. pressures and the

to Slide XX. Turning

likely assumptions bridging the our which for are is key updated items quarter We the have fourth year, full impact performance. reflective to our of mentioned earlier, which

our are base. be year our We believe new earnings XXXX, as planning currently FY now 'XX that fiscal annual process we beyond in look will we

expect centers. our construction our growth EBITDA of improvements HDPE, from see We related solar, to initiatives service to and regional some water,

our these to Some original still do operate and midterm, anticipate in contribute initiatives to expectations of are positively we where these year-over-year. we expect businesses below but the them significantly

we with as comes overall rate the growth the higher capacity the new continued and board modest see possibility single prospect improvements of growth lower expect productivity For supported business, the by on a further interest of switchgear a digits of volume to and in environment. low remainder

the remains 'XX. what larger pricing progress question as through be will FY that we environment The is

the remainder year this of into FY remain and to environment 'XX. the expect challenged through We

many are EBITDA initial this our at time, for market 'XX November, environment. estimate will in perspective there important and be uncertainties Although more around we would have given FY the a million $XXX

business. such anticipate having However, this preserving updates our history residential remain strategy. investor-centric cash key capital continue estimate utility of flow continue our to to and on strong could provide activity we'll impact higher We be and improve. topics our free on focused transparency and in construction starts will that in We go to areas deployment as

enabling stock we him repurchases and has for also acquisitions, chapter. best David. will David's into Atkore X truly to to Atkore Atkore go value model, a his to the relative drive an balanced shareholders. missed we years. both dividends colleague you, next made as we quarterly has a and in be past our Before internal leadership, Q&A, the the been extremely creation David I address teammate, deployment David's investments, created have Thank want to and his Under wish fortunate announcement capital leadership over departure.

to talented Deitzer working X the has line as organizational up open Chief help and is which to and call are smooth questions. and new We all in Albe, role and With of forward in John Chief closely that, roles. X. team Officer have are model look support with leaders we'll running with that the will that fortunate Accounting turn John transition, to ensure to phase planning, over the new this will Atkore we're assume James incredibly transition, for the operator ahead, and deep David enables a a have Atkore Looking August get leadership to succession leadership they a and of John respectively, a who and your come fortunate to James strong for James as seamless their strong financial to in Officer, Financial we

[Operator Instructions].

comes the Citi Kaplowitz line Andy of Your from first with question Group.

help. thanks Good for all morning, everyone. your David,

Thanks, Andy. Appreciate it.

And of revised estimate amount Anything $X.XX. $XXX price you helpful. we normalization end some think the million the said, us the on million in takes would Can you versus $XXX million. could million. to exit that rate When your for be in price versus is would thoughts initial of latest what $XXX be up gave could QX Bill, you think normalization and So quantify versus about 'XX? initial But your the run EBITDA overall rate color I what cost puts of then you cost 'XX. $XXX the give higher give that versus this being obviously, estimate year initial us to you us of

two Obviously, Andy. Sorry, very questions. important

a portion HDPE, that the that been I the you at our not estimate have in $XXX I does would year, when include will of original everyone look this think million. million remind of $XXX which

price been So somewhere million. million $XXX the in if would around $XXX under assume you just million of $XX-plus this cost so that year. We is have or

you or that the So last to million $XXX add you're the $XXX so against at XXX million. year,

quarter we then benefits of from you $XXX you'll is will modest mega XXX, into built right mentioned. Andy. our some QX year what Bill what expect Given that forecast, over are initiatives global now, be saw XXX year-over-year, where which up. on type number, million coming from and volume so so our kind see we projects of some would our last XXX. see forth, you solar Obviously, Very and next And what's to into range. built

helps that hopefully, So out.

does. the then environment changed a And between this elaborate maybe It could on quarter. quarter Bill, in and last what more little you

Did quarter, last worse. Did a think seems you you else delays but got it something do season, Is conditions destocking? QX. I weaker about Is in fair going price? And the that QX your than project decrementals see you to more just a pretty thought? on? start like customers you then did start on amount all talk severe the versus ground have construction there

say yes, Yes, the of Andy, all I'll above.

data strong from as weak now. products either we spoke that. next other into So assume and centers markets just serve utility our are forth, forth, like I markets and about, And David or in markets as whether ahead so so you commercial forth. and to have But other we're that the so we are all obviously, and you year of in solar really remember go our or right kind proud shareholders of markets, and words, moving it's construction, things

the the X markets where in the secular bounce Again, other all percent, one [indiscernible] the we back right and trends. that should hopefully, page, the But get or called markets. we showed as now, and most we out for second of X half essentially, the on long-term our key

just we you're and that's stage. like, and hey, residential this there's everything. utility down. obviously, is And built if it's home So at subdevelopment serve multifamily being where okay, not But PVC,

even quieter. I markets So us on let much do that that speculating I specific would when up rates, there's the how pick starts markets, you are to ] companies, have Fed into you much talking whether without but and the look think next drive tell our cost year, start at them. job but cutting that from distributor [ delays. interest the or whether markets a in have can Navy commented others I public

are There largest than we're the XX seeing I same we're X quite seeing. that of thing frankly, top think, seeing the are private distributors worse

the and that we bit a using So down is it's the market right of a little serve there the so and now. RSCs market forth in -- us markets end our

price more I reacting quarter, think, to driving you and than what hey, the is out, they they to competitors did listen in or say, factories David obviously, fill price need Andy, saying our control, if else call that. here's and the is that prepared to that are. that, and can't competition, are at looked we try weaker, somebody to this again, as thought I we markets earnings do our So

now a so but of crystal obviously, focus like we And I'm obviously, the we get then absolutely long-term fundamentals, of rather out or exceed which go hit and our front quarter as next it's and expect I'd it's into just probably But it every -- people forecast, convinced our ball. on that, a in numbers and to pick as strategies. quarter,

quick one one, me. more one for So just

is even You mentioned but much business, know you hits within you business business. in you bigger called an think on the how Can us that? increased happening give is your on We conduit. And import stuff pressure that PVC, are your than really perspective of that increased the this condo since steel more little it Metal seeing having quarter. an it but it out, is more steel I on a competition Core impact of impact is XX% you

there's Yes, be as I just want trying to to don't I'll QX, company rank, Andy, number, customers ask, always there but fiscal top X Well, single like we way, almost go for making product the again, from every a color has, in QX a of you just I'm an it's more there's did. on give import? where, say transparent every our here. of assume cable, is or challenges the when I digits, low yes, something little bit but Canada. That's to up in X% but coming from following

competitors Steel been or the a is so And And years support rough decline and out the that else brands my on to U.S.A., or better our job. made. first XX you of X% that somewhere preference XX%. point quality price way, has electro around appreciate these and grown domestic in frankly, the move point quite X% a that that we're it's the over it's for I products, in just here grown still tolerate and conduit everything it's there all made moved doing American from XX% have the product. are can't to whether But numbers, the to contractors

So some as market point, respond. that into you we X% share. At ignore business can factor here our back to

the in market. can't can't just at You some -- undercutting competition coming ignore and you what

David. line question next Your Tarantino Capital with comes David KeyBanc of from the Markets.

Just million out point incremental to versus in price much PVC of incremental headwinds? you of give Can of the the how Like the and pressures? color bit think kind some start is by breakdown just kind Maybe of headwind how to of you how us a on the import HDPE headwind outlook? you little the incremental kind normalization. on finer the put would $XX is

Yes.

little nowhere, So to about. even customers more can mean just just I'll that or redo reacting it's me that it's I this, to I split. ask but that do like are quarter, If I trend a guys we in try give color to probably guy, have mentioned David Andy reflection and is -- to bit that hey, see. more -- I But give asked to the start out think I'd to and the more came or it's of -- we like conduit these a last had it's in not then it, metal color. Andy, and whatever

up year-over-year, So that's PVC it's to and going yes, also I products probably first then want emphasize there bit dropping X% probably there's a HDP. like little Again, is products other X%. beyond, but

quarter, I'm But tougher long-term last all of comment into referenced or when into the the market, as and a a pick sign almost So normalization David's than we up right stronger our people quarter, expected small this moment. we move even had it's from next volumes do next those year now, year lot bunch products even fiscal price. a Ken way of get a in assuming actually expect at could year around going

How Okay. maybe frame ramp it's maybe on Great. expectations last an progressed give solar the of torque us from into year? could the could you're has And I but how it X next then facility? you early, update versus you about thinking know this quarter?

a ago. challenge, forth. a this I'll X don't time here The It's ramping is -- what But thing to new positive up hold not exactly of and double-digit challenge the But and we Yes. months is the we're only from at pick do and percent. quarter expected be first. which so standpoint

are customers Our there. still out

opportunity the that. hookup have challenges and opportunity we're us for enough of for a things, out We're little like I utility solar want growing. on enough customers, don't there. stuff watching them, bit there's think but I with But of speak some to there's getting that those

look been asset do in least ramping in this as I'm of into your into question growth follow-on of team. not David, as But more, then we is, if before. million here to I lot next that CFO stage, year, yes, mean, a expected. really next up But of $XX of albeit have headwinds. going reference David every these it's we I initiatives. have And add, at have the EBITDA prepared or remarks, the pricing we not may should proud incremental kind at but we should we're year.

at last So to well, the still obviously, quarter-over-quarter out that on track there's number. for of are on I the pressure we up things going team. But quarters. continue pick look to And are couple of if

question B. Rygiel line the next with Riley. comes of Your Alex. Alex from

softness telecom how the market. question sequentially? but is, referenced I in that a utility and You these suspect year-over-year, was performing my markets are

flat. Really

Alex. mean, here is volume bits of kind I not today, increasing a precursor Lastly, I as we of little year. going maybe next sequential quotes, sit think better say would for minor into in a meaningful increase. But next a I quarter, which maybe

I without there then important, Alex. And us, what's so but know, any just distributors it just They mentioned forth. this other obviously, to David, don't market. and for answered weakness the triangulate most that's companies, are in

If at utility this you X% Dodge, down looked year. they're be predicting

anyone and the a solar don't fiscal going a electrical challenging it's ago. yes. else everything secular little utilities we think than we and more I and heavy bit go right. question next So into of long-term what year is and Right expected now trend to probably that just as year,

based talk the is to upon in it about price sense of inventory you inventory some demand competition all a -- and can is excessive bit weakness that or due imports? on sort driven hand in of the -- then channel where And

I'll start.

there just down normal say, of my even contractors figure, grid, largest before actually I with would or -- the line. to are talking time lots back up, whenever backed one COVID, two putting overall, what's look that's in to X were that or up -- right X the trenches because they is utility, weather hooking let's well, is again, you years of the are and utilities about again, sense distributors. to say specifically where I'll in actual the all of customers But to following. that if inventories the slowing top back, the out customers Here's ago was things almost

buy no don't enough pressure, they make that pricing the with like distributors said, thing and happen. just have worst devalue do They is that stock. to money Now can

are So I cut below think trying distributors general normal levels. in wait to and even

competition there of need say well quite but And but could is so frankly, inventory, So a the if stock. I off you wouldn't would again, right don't round delivering have I extra just distributors. well, we're is week that level say to now, delivering you our

inventory And and think Alex, more think expected, going therefore, like under I levels than would a their less the they everyone just door that that did. feel I out their bit do into the normal somewhat going is quarter, I inventory activity say the But than [indiscernible]. I felt were they have little like

were of want I that a reno they to like makes felt that they leak they're middle I in think So kind that. sense. the probably little of and of hope bit

Your question next of Dray Deane line the RBC. from comes with

to congrats like sounds my add David. a also congrats to That I fabulous James. then and John And opportunity.

Thanks, Steve.

you. thank David,

circle make the Is on dumping. want of number you represents to to now said XX% number? it correctly, that the situation if back on I And ... the guess just Bill, heard the right market. the steel I that I And Mexican sure the constitutes conduit.

correct. That's

if the that enforced, be? tariffs But what number would were

year this can XX% and I in down what since have factors. XXXX part versus the -- and go down, award took that me then. happened the for occurring. we're some to little to baseline other one. that they hours since geeky not tariff things It's all go it X when And again, up In USMC, over done to other they XXXX, around, less, minutes those NAFTA, fold in was depends on let of Obviously, surge agreed was NAFTA and could getting from switched is what you any on go XX%. here too country, So a from there around without because or Mexico up

compounded XX% being point it's grown year, a significant. it's the of but So to

year implement a already to or or go USMCA administration back drop we pricing. you substantially. if And written that say -- So it's Deane, mention into gauge did why to a with our have requires that contracts in, built tariff current next forward, new that's to where million. and don't put different $XXX number the hard to what or was hypothetically, into We administration that could a the

So more right on rates tougher little November, bit where little that, and administration, like predict have clear to we'll in forecast now. again, a a interest a buoyancy things that's it's

But Got I a like pushed out you've based previous upon what that's moving calendar normalization what happen? you the it's between it. would know be know the still, reached now today, of the where happen? normalization case Mexico. I where Where parts that got The know best Look, of was towards do expectation feels fair situation. would steel today, price The end you 'XX might you and lot a PVC price question. normalization see from that know being

how get in caveat the prepared is with every to now the with forecast, print I on less or there next is answer, X of and backlog I'll the my be with calls. world David I of a made but changes one But would have question, first, mentioned year would the think weeks day. Deane, for remarks live the fine baseline. years your in comments pricing and I Here's a We we that

much But call we to of budget, organic than actually on growth, up, forward inflation. look drag didn't productivity strong, you say the as out down, pricing as I think that's even things could higher with slightly So and some maybe. as more say, and

are and mega next that that activity in like year I think look Hobart -- kicking David at is baseline. product that projects place net asked earlier, in will gentleman our about you initiatives our the the have global growth We strong

track minimis ahead obviously other we drive get to going put will not point reflection be will fundamental growing every pricing the it our our goes that become company. which with for earnings, think I'm in of I that So and enough but other on things back strong de stock will a of

collusion, just you All to last that on use to do just can start this pricing hearing hate some trying that. What the in some comments I really -- word question. figure be any you I there. maybe out with -- of appreciate substantiated, about is comments right. And if noise PVC? but we're this could have

Yes.

saw So asked proud short the your around, question from decade, first our and is it's we report I'm am this going conclusions says mechanisms ] going over call if it they're diagrams, a tries short claim you, to seller. make. weekly to probably I that going stuff you tell a you've some of of so the that Indeed, business, is our scattered to unsubstantiated apps I'm at internal pricing seen from [ to Telus drive seller

from Your CJS the of Securities. Moore Chris next with question comes Chris. line

well biggest just pricing PVC moving you maybe fiscal pricing. than look represents seems has as on of product. answered, pricing it's kind but pandemic other risk down relative risk one that significantly. Obviously, I on been it David. forward? price to the When at pricing Certainly, come think for must on 'XX, is still Congratulations relative still to more began more PVC like the fair since any a basis increased

to a And constant if this our existed. been or more you is drives react which has constraints, Yes. yes, theme Covet, demand again, I'll back you bit the since a little business, color, give answer Chris. but supply with go

can all All margin. in that our of I of think products up went

price. then competitors other here, both had hurricane in and you isn't hey, our a to XX%, and months much. industries, price for your if their off allowed X XX%, more that there little Texas or COVID, also as opportunity my somebody So that be for X it to therefore not maybe an did freeze had with back much later, the could go drop as thing pick timing that to try say, had X%, you're my a someone just But you hit around you to opportunity abnormal factory, drop PVC, up fill try we then if but

foreseeing But way condo we I PVC. reason. in So and frankly, and have then on ber words question Deane's large out been dramatic earlier this that. there appropriately that to in quite yes, contract do long the scope administration's PVC just we'll that, focus to in the But competitor I very that's see mouth, all how happened and a in our least of And think think called Deane's corporate it's a quarter, the That's out. CEOs some or thing plays that's already at future earnings.

And chain a one a strong demand. not only times, there very during there but thing COVID was that Chris, disruption, other was supply remember to

If today. For don't talking enough talk that's aspect now, like pricing. that I we're end talking about we of demand I we'd don't had about the me, think think pricing -- right be about type of we

I is So PVC the affects pricing. uncertainty as year think and PVC it probably year next goes around that why we say in for regard, it just the for would more market reason next

Yes, at stage. into forecast some a said stay But being around these the pay the number information, up. just but still here, are I back rates, want there sub up me, them. I stuff, start estimate, of David, look and the that. the they volume, at homes, starts. could to this bosses front to And average go XXX,XXX don't But the their look doing next at getting it's are starts And market how winning public number just some easily have year, pricing $X.XX versus but if but X.X for Fed at unfortunately these ifs on And to we everybody, of you built. whoever single-family All that you stuff, go echo an developments you picking year. no why million in stage, didn't dropping get are but we what again, did I'm a this they residential what stuff and a at above people to

a other little as one in comments. aspect And Chris, bit opening this referenced Bill

market, the look overall when And you projects it little and of construction right market location not of are when by now, the the price happen. less of that you your two of opportunity these made all on competitive But with. large becoming projects a to kind things forth. when construction a overall is more bit piece happens, larger activity begin do activity. the kind gives One, to up So so typically, and at other it pricing opportunities road there's so larger

into going that right QX. element feeling So in now, and we're I think QX that

helpful, last for Maybe a guys. just me. one Extremely

come So kind is that come Any XXX accompanies down. a range obviously that. of margin EBITDA up target could could

to... David, do you want

think I is that's that feel we base, next the approach $XXX minimum the the Chris, we basically going year. of to try like way kind million into

believe we now. viewpoint lot do uncertainties exist into as we'll a that November, The more. with more I team think the sit that's now. know I a do right going So into our here will November right going lot

could competitor per Again, dropping, and I to one so somewhat are the depend Yes. we versus as I thing, help on we And a quarter what want emphasize year-over-year same things could think margin like focus price us could is. that on. to do on value our lease Obviously, costs answered prop our things is revenue But to on factor demand, cost and make costs. down trying of actions think we revenue depending like margin market our ton. of if more a margins collections but the even earlier steel steel be the

But again, will Chris, into... the specifics get

far too Broadly out. speaking, not

No, I'm not correct? anything, [indiscernible]

thing -- also for certainly the I I is I we think starting that up which to mean mean mid-teens helpful enterprise. get SLI into again, is one couldn't

Your with final of the Chris line Dankert question Capital. comes Chris. from Loop

Just at guess utilization of into 'XX for continues guess, that specifics, off can far ramp you David, you you goes, today? for that help hoping give is the congratulations, all rate what as and sooner, as any first I ramp the -- . fully us I said your sorry utilization Obviously, and kind there XX% get but sense but are again, to and for Hobart today were here. to we thanks

that, a precise going. higher Yes. then it's things got two And without you Chris, into number. getting No, than

a I But you the to use of range here, like give some remind north definitely wide but we XX%. XX%. plus So

want don't Deane lock the third how little I but a we're thing a yes, to over and forth. get we the my shift, answer account like So account to shifts X event number with with not quick is because there's called fact working OEE we're Mexico working but in do the this clock so Chris, maintenance almost preventive in change forth and to the weekends that bit that and you that we SME with on or year starting so not

locking your It's XX%, but go volume. is number. grow could ramping numbers, XX% as growth, up. not into we But above we're the absolutely again, there's So that answer year, And still next we definitely XX%.

extremely York I of know commentary That's helpful. it. year? kind or kind timing? finally volumes New anecdotal Any some HDPE just And I could of impact then next into for on funding guess, me, got finally have update Got program any how bead there and stood California that stuff up.

Yes.

the ready, All Chris. we to the went are hit that. through great not sell-side I imagine So questions can't but would question, questions have if

which But put going of I all the it fiber calendar 'XX. states our that to that it more call 'XX, are X forth. put you going think in year it always said 'XX or calendar because people all large to point, it saying competitors gets it, the in -- I'm making states on other the I'm the going whether to end than and very to when success. cautious segment into ramp your what's it's put approved it were fiscal optimism. this optic I'm X have closed, so we've of

to I in from But be it's cautiously guide. say, pickups definitely see So expect going to XX. been through think profit I optimistic to XX will a year. we've We're our ramp and next going

session. Waltz call the question-and-answer concludes This like would Bill now the to remarks. turn closing over to back I for

to conviction impact in us our We we continue and focused to you challenges challenges, and your then processes, in quarter us that, that people, forward business resilient you in fundamentals on our strategy our of We are perspective for thank interest us company. November. With remain our the they and look support on call with to fourth the shared our speaking impacting are midterm. today which during the in have several enable future. these and Despite our the and system X currently

call concludes the call. conference This this concludes for This today.

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