Ducommun (DCO) 3 Aug 232023 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to the Second Quarter 2023 Ducommun’s Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to Ducommun’s Senior Vice President, Chief Financial Officer, Controller and Treasurer, Suman Mookerji. Please go ahead.

to second welcome conference and you Ducommun’s quarter XXXX call. Thank Chairman, today Chief is me President Steve With Oswald, and Executive Officer. I to any projections discuss the Q&A certain regarding remarks follows. the to we events, that during that or am future performance or make prepared Session forward-looking going statements may limitations

Litigation and These factors, are XXXX to could results historical differ statements prospective. by are including results uncertainties cause financial are forward-looking any risks, operations the statements of as implied from to Certain and of not today statements the to Reform subject Private Securities therefore, such are statements forward-looking forward-looking results under and future that conditions, which other or facts, Act materially future statements. expressed market projections actual

forward-looking that prove expectations reasonable, that we are in no our will such can expectations Although correct. reflected we been statements give assurance have the to believe

are change. future addition, company’s to subject results estimates current of is based In on which the operating business,

by risks. to in with and if we of others those are among during chain are our and Particular presentation, not from otherwise. statements do markets, update and made economic SEC interest the These filed forward-looking authorities. defense time required developments any orders risks of of facing made on Ducommun our the our regulatory are the annual spending, pandemics timing cost natural XX-K described and rising only supply U.S. and others, the to and Statements except level disasters, in risks, competition, of the this including or Form expansion of legal made statements regulatory government subject issues and end-use customers, intend and this acquisitions, our cyclicality rate, report geopolitical as call include, and risks

of XXXX report We Please on with non-GAAP on our measures. QX the SEC non-GAAP GAAP for the with SEC to includes quarterly a filed also referenced this call This call. filings today. the our reconciliation and refer financial measures Form-XXQ

a I operating call Steve? like the for the review to Oswald Steve would results. now turn over to

thanks for the Thanks, an review usual, today us Afterwards, And the situation in our at I Suman second Suman. conference Okay. Today financials everyone will quarter joining as will current give company. update call. for on our detail.

discussing acquisition results, and did $XXX product up positive for million electronic at net for begin company, of QX I our the I cash very a acquired. release completed more build Engineered to strategic Products price purchase on BLR Aftermarket an of follow as and both end a Before and that our is want portfolios the press structural we mention initial our April the step forward goal. continue with to This we long-term of revenue,

for pay in stock a proceeds million down revolver a over whole that the was resulting the used $XX and we BLR of in offering portion acquisition, for May, public completed of proceeds the addition, acquisition. In the those net pay utilized to

to off his We with Carpenter, very I they are are acquisition. and Mike the President the a start. good want publicly team to thrilled welcome BRL and

sequentially, an year-over-year revenue was grew as QX excellent both Now our results. turning to quarter top delivering X% the of line and million. $XXX.X quarterly we reaching growth year-over-year

and and and aircraft once better. is again another catalyst in driving narrow-body was press revenue only overall sign will As get shape good the the in in mentioned release, recovery growth that positive better

down up has significant Turning Aerospace XX% Ducommun’s almost XXXX. year-over-year. growth, almost Boeing with in in among was once revenue up QX million revenue QX, for rates again But build to others excellent in eighth business GA now up and UAVs, the Commercial for quarter, Boeing defense Aerospace the F-XX at the programs XXX from recover. Airbus solid softness the consecutive sign as AXXX and QX year-over-year business of to Commercial industry timing also delivered markets, Aerospace mainly continued others. in the for with The $XX year-over-year having again, XX% the quarter. business Commercial year-over-year as MAX and recovery such once due of and an Overall the performance Airbus XX% delivered growth continued showed company’s and we was

be Company activities was anticipate adjusted of and once closures, gross million benefit posted of adjusted year million, numbers this margins increase delivered was activities from income well. EBITDA XXX XXXX an as restructuring year XX.X% $XX.X margins margins to volume. solid improved and with higher $X from Ducommun’s stronger we plant this QX, our are team adjusted we through up also EBITDA The year-over-year of adjusted X.X% year-over-year. XX.X% XX.X%, in EBITDA as of And completed. basis in points up operating work the restructuring

adjustments, compared of share $X.XX EPS of XXXX. earnings share EPS of of the diluted $X.XX quality was effects the good $X.XX factoring in diluted The a acquisition $X.XX BLR were to with with a when year. the a a share EPS QX GAAP for share diluted But prior versus

higher diluted charges, to for and other requirements expenses. key higher and EPS lower higher Some the debt interest BLR incurred BLR restructuring due drivers acquisition-related acquisition, related expense include GAAP to fire-related the expenses

and at other at an by of military from increase $XXX reaching million $XXX Blackhawk to report such XX%. backlog quarter, ever. QX as the space the for milestone achieved the company billion major I the platforms to led company’s was increasing Defense This rotary-wing million quarter Seahawk backlog to very total in platforms. backlog the QX Switching the am million greatly performance, $X sequentially, XXXX in by time XXXX, the $XX a of contributed end over first and of military this end and pleased

comments in it with that this come. in line with to DCO business very the shape past news and my We’re is positive with more good pleased is overall defense very

Viasat time. QX the AXXX an AXXX, In sequentially entertainment, the XXX all over recovery and Commercial by This in-flight which expected for during a quarter at slower Gulfstream, million after ninth XXXX, would of QX that expect XX% in was addition, we of $XXX backlog increased MAX, $XXX the end million led of the the XXXX. than the consecutive to from for Aerospace increase end XXXX at

excellent overall other for quarter of X.X. news The was book-to-bill ratio the company was the out the

defense continues. the for work offloading For primes,

expecting mainly roughly card for in our million We’re year committed full as for circuit $XX to, Raytheon. business the

communicated, transition As of the the programs for already commercialized long-term is run rate $XXX will development over XXXX completed. common these in by for or be the defense once offloading work million

also another customers which a well, excellent In better loud QX, quality, place only shows and cannot be chain. this our supply up but billion-plus on-time clear delivered is delivery our showing and $X as managing the financials, And quarter in we in our our regarding in with backlog. not team

more will by and in the in completion mid- limited along year the being high-single-digits volume revenue this have also reaffirm headwinds, we for to guidance I’m more end for The well. be of see of Aerospace should the as return, but For XXXX, solid expected X Commercial it rest The will planned that year recovery for to guidance. the as expectations to happy continue our we defense lead confident with way some closings our of the XXXX. feel the in

missile, posted Beginning programs. sector, Despite provide $XX.X some a of versus products color second million, decrease we on our still a for quarter in and QX. various additional other me F-XX MIRV space showing and saw let and military revenue increases with platforms. QX business earlier for mentioned markets, our was being Now solid space XXXX. demand in the down We and Apache military as the

Commercial XX% Ducommun’s from in last year. quarter of trend XX% the which period, Aerospace, this military and down balance to like. the second with The revenue space will we continue revenue more represented And reflect

also downward represents significant the total of of trend. much And reverses this improved We XX% with the million, over $XXX Ducommun’s five-quarter second increase sequentially of XX% ended a and a backlog. quarter backlog a

Within on gain The mainly other XX% well. quarter our to continued Aerospace Aerospace Commercial Aerospace the driven momentum second improvement platforms expects large and XXXX. as platforms bright offerings. million, in our rate $XX.X product the revenue half is by Commercial across in to second aircraft future of increases Ducommun this Commercial bill operations, year-over-year increased

million stand as than backlog quality our XXXX. second continue quarter we and ahead. delivery million $XXX and the move to QX up the of Aerospace Commercial also at at was Our within sector $XX stands out The end

ask our I’ll Suman? in results to that, detail. financial With Suman review

you, Steve. Thank

the on today’s QX mentioned a of XX-Q please call. QX company’s and see As earnings further information description reminder, release a for

As Steve a period saw discussed, results second reflect increase significant Aerospace of revenues. another quarter Commercial again, Once our strong we our in performance.

would rate growth outlook We and travel, in support from higher the drive by strength in remain that our should global also build our and for which encouraged key long-term demand are customers aircraft continued the encouraged by shipments. continued domestic

offering of completion later. pay we our on the as a subsequently detail for which BLR acquisition, also public Aerospace we announced completed of to With of and During further the BLR the we foundation the progress we Steve help continued portion to half acquisition quarter, the a stock all a the restructuring and mentioned, in will year. program strong laid this, of make feel have second I like discuss

the second the billion hit our $XX.X Ducommun’s results. of in for This in record mark $XX all-time defense of quarter of Aerospace increase second million partially quarter backlog the $XXX.X revenue the over at million by of million second for history. exceeding dollar sector. million at the XXXX lower was and our Now end the turning year and almost for XXXX. the Revenue the was the an reflects of driven to the our backlog within Commercial end growth company’s platform, QX for growth time second of was space business. year-over-year million billion, military offset our quarter this by $XXX.X of quarter This of across $XX.X $X.XX versus a growth first overall of backlog

As a XX agreements customer of on some or dates orders reminder, long-term with less. prices based and we expected potential as purchase and revenue months delivery define fixed backlog

in the gross million or We XX.X% of million, the quarter revenue versus for XX.X% or of revenue $XX.X year posted total of period. profit prior $XX.X

of operations of the fire certain amortization impact BLR on relating We adjusted step-up share sales margins Aerospace. to as as our well Guaymas continue cost recent of the we as inventory items gross have acquisition our to non-GAAP on

an Aerospace QX better scale driven On our margin pricing versus XX.X% and mix, Commercial XXXX by basis, improved product in in XXXX. were gross adjusted favorable was our XX.X% margins QX business. in gross This improvement in

with and supply operating through We chain a work environment labor. continue difficult to

strategic business. However, proactive able to buys have significant avoid our impacts on been investments, inventory any and including our efforts, we through the

revenue, operating Adjusted revenue $X of million, in or or for quarter in revenue the $XX.X the period. the of revenue of million, compared of or income income million, year operating million reported Ducommun comparable was $XX.X X.X% year. quarter, period to compared to X.X% prior $X.X this X.X% second of or X.X% last

per $X.XX per by to $XX.X higher $X.XX of operating net or the net for The company or income net of adjusted or million year of of million $X.X income XX.X% per $X.X or share of $X.XX in relative interest in quarter basis, EBITDA comparable XXXX revenue the the of of period. costs million XXXX. share income or mainly $XX.X million million the for net XX.X% diluted second Adjusted XXXX. of The company compared diluted or for net an to quarter driven million XXXX $X.XX diluted the income QX compared to was to was period reported lower during $X.X compared reported On share second $X.X a income ago. income revenue

results. Now, segment our let me to turn

year. XXXX space Commercial revenue revenue the versus partially $X.X million $XX.X the Our million of Aerospace year-over-year markets. quarter by segment increase applications, sales The Systems and reflects across higher within military posted Structural last our million of $XX.X $XX.X offset lower million in of of second

million last X.X% Structural Systems’ for or to $X.X of X% revenue $X.X revenue, compared million operating income quarter of or was the year.

Systems XXXX. Excluding both QX This segment. segment improvement and grow. been quarter XXXX manufacturing or mix, to year-over-year better was by our pricing XX% our continued other QX Commercial X.X% This great scale Aerospace years, for in was charges favorable in businesses adjustments higher as volume product operating margin driven in a the the and versus has Structural significant restructuring in business

military of revenue. versus $XXX.X second million customers, year higher million and in Commercial million $XXX.X offset Electronic of space segment million These results across revenue posted Systems in lower prior $X.X partially Our XXXX period. reflect company’s quarter of by of the revenue the Aerospace $X.X the

for income was quarter million revenue prior $X.X revenue of or the of period. versus $XX.X the Systems’ year XX.X% Electronic in or X.X% million operating second

volume. both product operating to in XXXX unfavorable primarily adjustments operating manufacturing Excluding restructuring unfavorable segment versus QX and was charges revenue in margin other in years, and mix XX.X% income a XXXX. QX due percentage The the as of XX.X% was lower

of restructuring XXXX. performance our and taken long-term. in back the of Berryville, our remainder Guaymas, majority Monrovia, actions This in low-cost operation to update, going the are discussed that and achievement of short- Arkansas, includes next we and and other the to to accelerate California, transfer strategic previously, our a commenced as Mexico, centers These to a QX Moving our in the position initiative States. the work existing the being performance with United shutdown a reminder company facilities as stronger and in in better to restructuring for goals

We continue also transitions, on get these make requisite to both working retention customers approvals. and to and with employee progress our with engagement

benefits-related. we XXXX, charges. restructuring QX severance recorded $X.X these were in The During of charges and million majority

expect program, restructuring Monrovia $XX in during We $X we the expect anticipate wind to XXXX. rest Berryville, the actions. associated selling generate expenses $XX both Once incur we to from million an restructuring to completion million locations. production annual $X we and in of down and savings at million Upon our buildings land additional our to at of million

continue In used proceeds needs. our which common $XX.X in credit acquired. credit purchase liquidity million, This of flow with to end the for allowed a the during revolving liquidity X.Xx, to we debt-to-adjusted offering the lowest end with second $X.X We net quarter completed LTM of the April, We our million pay-down cash next net May, facility. we capital In the to capital quarter of million from generated the in Aerospace we our complete amongst of facility working cash a X.X revolving our quarter. EBITDA of several resources, us completed Turning activities as BLR follow-on of stock is the million as acquisition years. to which we operating stock $XXX and to of we price manage the million have shares of an $XXX utilized issuing last acquisition. of initial available

in in and debt interest the debt beneficial, the XXXX hedge November during our increase million along we BLR incurred In timely into cost $X.X drove rate to interest was in help $X.X in refinancing acquisition quarter versus in interest year. XXXX. and next an effect January our which with costs $XXX goes While the from interest million put the for million, XXXX, environment the QX XXXX rising rate for will

halfway this review, restructuring the as stock And financial by we public a BLR end now second To in in acquisition good XXXX completion in there look XXXX. forward the the is conclude the half QX of place and the completed program offering and reach are with much of we expected point beyond. to year, in to and the of the

for now over will Steve to closing back it I his turn Steve? remarks.

to Commercial Public orders our closing, Okay. shareholders. look, success. to important and want QX QX, was will a shows a long-term towards presented and in higher which is aerospace as continues we the December working acquisition our BLR shareholder company strategy to In and Suman, I XXXX obviously very margin for good were value impressive. move quarter generate off our in we a also goals start. is you. defense very in XXXX. the mention in higher offering thank continue and quarter expansion was stock

and the My of strong build as years investors to of continued a support second and continued the for stakeholders XXXX thanks employees, you for momentum well as half your all ahead. our

let’s questions. go that, to Thank you. With

from [Operator Ken first with Instructions] Herbert Markets. comes Capital The question RBC

Your is line open.

good and morning Steve. Hey, Yes. Suman

joining. morning. good Ken, for Thanks

Good morning.

And should but for down see the of sales start really how top defense nice third now momentum. Yes. just start line? bookings here about inflect think in of in you maybe several maybe the we some the Hey. have sort off, we defense quarter? second had defense terms positively sales, half Steve, business to obviously Do to quarters of

Yes. a couple of guess I things.

bookings in for that’s First, Ducommun we right, and a big are very team positive happy the with for so our QX, there.

on least to moderate what still happened I in of you if better much at think we we feel a look through you part forward if here, again, of that I of others. and of about they just was lot And as talked are a GA calls, of you I little past that it getting certainly just not end tell look few as this is big going the QX, sort will the a orders, year, at mean and XXXX. have I at I but was going these UAVs. year. of mean there timing and is that when in the just a the are a takeaway big orders well Patriot bit

the our feel that about are these good are defense So, again I but market, business. just happening in very things again

I coming. not that’s internal to remarks offloading moves only manufacturing facilities, in at okay, inventory. massive quarter our last this that’s from these mentioned everything, machines and have We called that my Raytheon include

on here buying is versus So, once from having of a going are to all that the our pick material side start there things lot customer. revenue up we it funded the

So, good I Ken. things think some ahead,

great. on within there going it of you I I are narrative part other has Raytheon on opportunities? today. customers. defense the a to mean incremental is – and lot take with to just success on markets the offloading, the seeing your been That’s And comment Do expand defense mean ability you

upside the maintained sense but to which think are to great opportunities? there get targets the offloading are you starting that on a and could You have ambitious, maybe offloading be I some

Northrop GA, Raytheon. obviously we We had absolutely where look, do. had with with great good others, a companies working, start mean a like with I especially we and start are

their that trust we and of primes And looking supplier. work to things all for CEOs, working move talking our facilities can know unless prime they is it of us will We one best with performance, other makes the the all defense because defense at not out sense. are they the And Northrop.

our this of the because getting [ph] things are in of that’s So, game performance. we one

finally, if that comments about a a as second I good about And margin segment, I your Great. around muted it half for maybe and little second sort timing could more a defense bit quarter I electronic we rate in just sounds think run assumption systems, of just sales? take think should margins as of like a considering the and

– will Suman? comment me on let that, – don’t throw why Yes, I you

the are year, ahead, the projects. marginal No, a I improvement uptick with probably that point seeing we think those you right. an we end restructuring program is the it see will That’s the similar but start trend, by complete of as – in especially we should on

guys. Thanks Alright. Great.

it. Thanks Ken. Appreciate

for standby next the Please question.

next from comes question Citi. with Our Jason Gursky

Your line is open.

everyone. good morning Hey,

Jason, good morning.

So, speaking you volume little bit, a down. are is

I am that? in downstairs. How is

Thanks. yes. Better, Perfect.

Okay. Great.

about that. Sorry

had So, speaking business you, questioning the on the success talked some I appreciate in with that’s pipeline or out line amount of you comments the side? the Ken’s defense last on of in you you have and on the quarters have commercial over the two particular. with quarter Can front side. Spirit know the that of talk of about

I So, from get the kind on pipeline am an side? your the just to curious update the for on of commercial perspective outlook

Yes.

we we mean are we going hard going – know and in programs, which part the I upbeat up it. share not of very a all and on but the are are certainly on gaining sort it’s to about the all that most only it hit we are rates, all also okay. we ‘XX programs really So, are ‘XX, for these

still we just So, are here. not standing

MAX. we right we about think instance, I MAX, have that now in next XXX,XXX, at the the for okay, about going mean maybe months-plus, shift And public for are XXX,XXX. per for talked be I skins we the to XXX set XX So, pushing XXX,XXX been the

that’s of out, but one program further skins. we that’s about little So, rates, not the bit only is feel but going to the that the happen. And good And share. a

February to tooling everything now right of for middle are their looking and January in and production. [Technical shipping We start we Difficulty] Spirit skins for to are the MAX

out some on are then the the that on have restructuring And wrap see you up late, are kind you accrue see, that still to bookings you things, beginning of return we as of to that you to had you as some or things and side great. of are that Okay, are of restructuring to going thinking out, customers? XXX% all, here to look the here leak of cost savings going you based

that the to talked So, – we continue range about million. savings to have we good feel of $XX about we $XX million feel

each we to approvals there with are We less reason point come the believe anywhere we need to. range ongoing than And customers in that that in at that that work of have no is discussions to where we would this through transition. committed

a And the for – Apache. see sort move. one we there lot I just with we other the have don’t of instance, the programs is Mexico. one instance, two already spoilers for right We for only we have working mean Monrovia And major Mesa are to back-weighted going leakage. Yes. of locked up now to Boeing on down for are we

So, moves the of nice a not is these about lot there are complexity. thing

good feel we about So, that.

are far not leakage As as on that. planning to we customers,

a we will But that in million of today? as to be to is Okay. got And backlog like Great. I on does $XX have me, million then seeing what of look itself, know you as you savings. you look last that mix based on it from one you going billion $X perspective? that backlog the now, margin-accretive backlog are execute at that margin $XX for this what bake

is supported better to All in be short businesses. going and pricing to be So, it’s going by beyond. It’s it’s is, going to the and result in by in efficiencies yes. three XXXX some And cost enhancement be supported margin of supported operating going answer those the to leverage growing restructuring. by through

backlog at yes, as to through and that higher margins So in higher we flows it coming next the over do several into start quarters. revenue expect

think I fair. And that’s

you, Great. Thank gentlemen.

I support. you just to Ducommun team, the call. We Citi okay, to our here, on much your very want a Okay. want take I just to moment welcome appreciate

question. the for standby Please next

Riley Mike comes question from next Crawford B. Securities. with Our

line open. Your is

you. Thank

Blackhawk. strength platforms, particular, Seahawk, rotary-wing Steve, cited, to You BLR? in much is of in due military How that

it. of none Mike,

of it. None

so just that York for move have coming starting It’s QX in to benefited yes, of we things all None it. New but we – a of area, that. bit out in the Coxsackie, mostly quite are facility, organic,

of you Excellent. electronic And mix coin then, was the about on about and what unfavorable the unfavorable other side And was talked systems. that in mix? margin

yes, clearly where So and right, down programs There not two other was Berryville shutting facility some centers operating. there we pricing are mean including, contract favorable going under know the not existing but contract a that pricing are and better. margins at that to, are we that or the will performance which I currently so producing were we of suboptimal, to be are is is one get next different kind

So, things a over coming a of lower mix there the resulted expect any means in we been to has things of but a business. change few margin, quarters which isn’t the the in the margin it has profile those long-term resolve by and

Yes.

Excellent. a And the if like, higher continue will Structural several will come EBITDA EFC, one think, segment, they segment now you margin years than look Systems from together? out the do the that have you to do you think or

the type you it’s are whether electronic, or I operating hope But certainly – same we that both. tell will are we structural of doing Well, we for principles.

We are driving the business.

sure are going are for We – we pricing still come come grow together our We that think getting are to they work. making nicely. and

would I So, both. say

what are have or of similar Okay. it best-used it a try to convert continue be I operate the either it looks might you particular? in that as to an the where mixed of and just And in like and location come Steve. a last is, property plant, an in new given that buyer And then question wondering come for seeing am values to it’s in use. perhaps Thanks area a to Monrovia properties industrial not and that plant ranges in area might and buyer highest

at of in neighborhood, just about a don’t it’s big building, is it’s yet. acres know so property. we right of legacy nine Monrovia facility you a still are look you land, Well, but that. kind if Mike, of piece some

shareholders. are We our to committed

month the see are We two things where months in actively we it market to go. going will next or and

for So, no other movement. than report its other that

much. Thank Okay. you very

Please standby next the for question.

comes Michael with question next Truist. Ciarmoli from Our

open. is line Your

post-COVID taking volumes I here. afternoon the an a commercial continuing mean out of to going are sort the these want this Good with structural to Thanks especially questions think floor, just about don’t as Steve going I think it for new – systems Suman, benefits ramp? the aerospace Hi. level we How out well. high. to or get and maybe there really here, margins, forward, mean as the guys. all-time do put I stood restructuring on but margins you is I high

we how structural see the commercial increases to on programs? some here of do So, going think about continue forward rate as you aero

our commercial But year, pricing say back So mix, as and compared product have margin. also have businesses. across I exposed engineered seen have whether don’t are in scaled, mean, to rates come would aerospace certainly we business, in structures but business in improvement businesses the margins we that commercial driven improving our to also this they seen we the are aerospace products last seeing by I actions which also expect we have that I stick know and will

of So, that a the have Structures products some fit – segment. where have the a past engineered by acquisitions and trajectory fit the to have extent is years in the bit of few And number do fair influenced Electronics segments. we done our into we margin today also that between Structures in the

So, that helps a little bit too.

So you with I the of was this Mike, the have first I I calls of glad X% margin – just because one up, brought it – on and my am XXXX structures. operating reflecting was I morning had

are been things, where happy it’s and am about I we I heading. mean moderate only other COVID good will it’s see X I better. years to and going number, know the but but I get feel number. a that that’s probably to So, little bit,

unusual the I anything was saying there flowing like, well? that sounds higher products maybe are in probably And be this margins that assuming Suman, of unit and it. carry it is going aftermarket-type proprietary there bit fairly more as a you little quarter? Got should this And am consistent through that forward

in Right. and expect margins. is – not a give recur to yes, – was we there always guidance anything don’t we unusual But quarter, right, out, that that marginal. mean by that was always are are move I would there on try things but

think is yes. of most I it solid,

it really it of – And where think supports P&L. Mike, our just and just these just products in it’s strategy, right, – sort I for goodness the whole it’s

rates Got now the current other for you XXX, on are the some it. needle-moving where the of then MAX, And programs? production for right

this say I all is you, four. place. XXX fine would the over three probably the number I were or tell that

from destocking. So, probably there is our is generous I tell say being on there would I perspective. are solid think I numbers mean I stand I we that. that’s am ground now high-XXs MAX, and from the Boeing, are from there numbers can right if you Spirit,

we are I are yet. would seeing looking XXs but we for are these Mike. So, say, not what hearing, numbers, we That’s

of gains number the any might I it. that think been then new one, mean just other there talk speak have And or been bookings backlog. I you I the mean, to last offloading as bookings, that Okay. that mean Got – were – or well. number Anything anything to? wins else, bookings market too, to the – mean I other the talking obviously the helpful. a could any I is That’s in share color, was also record But any about you bookings

I am look, mean bookings, with I right. the thrilled Yes.

all-time it’s these high. about again, are defense is a little I talked tricky. of as our long orders a journey. – It So, We these have timing

just commercial on we come Seahawk didn’t in things And up even York been to such or for things as just some facility. had much – have sequentially orders strong QX in build in, though go we didn’t and working heavy on well. continue aero, the our New other as going that’s really continued waiting on to So, we that

are very we overall upbeat. So,

back in jump will the I queue. guys. Thanks Okay.

[Operator Kim RBC with Instructions] it comes Herbert Capital And from Markets.

open. is line Your

dig a of do we the little Hey there more. quarter think sequentially within MAX particular the to commercial just months. Steve. – and seeing your amount as into And The I backlog into second two year? flat maybe particular? There second from pull first slowdown or aerospace has the at any the follow-up. on with quarter. opportunity backlog fair on the you Appreciate customer month any last half to wanted Spirit the the about movement been disruption how maybe distraction commercial think certainly in of the pretty a that the bit in the much from anything was we in Is about are over

good It’s question. a Yes.

of a taking little pretty breather little strong run. bit QX of I a was think bit after a a

are think to the in for on help the other everything that Spirit sort that’s a wasn’t Spirit a going they and think I as just how stalemate from to catalyst numbers, the is of XXXX. read are half, don’t to QX going little that in it and especially and But didn’t think a transitory. disruption think happen, do increase it so as this headline be certainly positive a, for I reasons, folks, second you talking a I I things. all Tom it, of lots bookings, think bit all I I all – was far DCO – say just but can of they I

closed, that think from sure maybe any how as you on can be now about you Is BLR not Great. but would portfolio, specific And standpoint? I business an commercial here, we about with think granularity equipment you am don’t commercial? can that versus give within aftermarket the original – how – Okay. that I

BLR aftermarket. large majority that percentage, than of more a a For business specifically, is

Yes.

how was in total about that Okay. mix? total think the do of we terms I aerospace, BLR aftermarket know. in I versus commercial portfolio, now OE asking aerospace is

Okay.

looking by to the given I So, say, are percentage XX% to XXXX. we were is of would it last go at mean BLR, aftermarket. XX% we at end large were a year, we of and – that I

significant XXX basis front. well that our on on already way I are say we increase. strides would towards made that point have We

beyond aftermarket we mean that that even or and OEM in basis. really and improvement I report material we haven’t on that broken out don’t a But aftermarket. So, there is a quarterly annual

It’s certainly to Yes, a us to as on we the us – and on investors. shot now for it’s the aftermarket. get go journey important in to X going years the it’s arm for this XX%-plus next

Perfect.

Okay. Thank you, guys.

Thanks Ken.

back this questions. to would to the no At call I there closing turn remarks. for is Steve Oswald now time, further like

very you Thank Okay. much.

to to Certainly bodes the print investors stock I am QX. good my so of questions remarks very for for Just the company, after about want absolutely our I our I extend folks all on I half on was the have that with offering, year. thought well the just a second in feel look very again to product, certainly said the support QX I and thanks good have upbeat them I earlier very to forward speaking well. calling today. want we with where my for again welcome new as our are.

again. you thank So,

for call. This concludes you today’s participating. conference Thank

now You may disconnect.