Kaman (KAMN) 3 Nov 212021 Q3 Earnings call transcript

00:02 Good day, ladies and gentlemen, and welcome to the Kaman Corporation Third Quarter twenty twenty one Conference Call. At this time, all participant lines are in listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded. [Operator Instructions] 00:31 I would now like to hand the conference over to your host today, Rebecca Stath, Vice President Controller. Please go ahead.

morning. Good XX:XX welcome one to command quarter third I'd call. everyone twenty earnings twenty like to Conducting are Vice call Officer; Financial the today and Chief President Officer. Jamie Executive and Coogan, Senior President Chief Ian and Walsh, Chairman,

These eight information to factors, in company's included Form third Form are twenty release. filed the in discuss measures non-GAAP and the K company's which with business, company's we results earnings most financial are quarter of indicated measures with company due future company's with underlying of report current The the information and and Exchange earnings Q other projections some future any the including also respect K. include consist in performance of GAAP yesterday SEC together forward to eight items, discussed and note measures forth company and events. setting and on included regulations. our filings statements statements will the and looking to XX:XX those assumptions objectives Securities call one latest or future actual the forward begin, the our filed statements, rules XX:XX I'd evening defined looking and results the today's our many revenue, We that applicable the certain Commission, important Before earnings expect other yesterday's to these the that and XX:XX statements with the economy, like the business. are and plans ten financial as Reconciliations statements during could current of regarding its differ management, release twenty of its from in economic on described the to expectations materially

website designed of on events performance, Finally, and is we provide supplement sales. the on context financial for our earnings information the that to makeup key additional our to our period, an call posted additional

With XX:XX call presentation Walsh. can to at Ian You that, www.kaman.com/investors/presentations. over the I'll this find turn

twenty followed twenty begin with operations turn by you XX:XX everyone. quarter, R thank strategic Jamie morning, to more call. and our Good a our earnings business over And continues D of call one our year to of quarter brief the deliver the revised summary results. for perform call on updates and on I'd third several and full like for a then XX:XX expectations. discussion joining today's financial we to target I'll initiatives. to of extremely our well, to growth are Our

million million prior was Third two quarter fourteen eight in seventy to point revenue dollars year the one nine compared hundred period. and

products recover and quarter, stronger to year the all for first contacts in deliveries declines and now JPF or seals prior XX:XX below XX:XX as sequentially, to basis by aerospace had we percent continued continue point and year, was outpacing twenty to lower the million platforms. continue bearings XX:XX performance year and million This five growth the pandemic and the demand our safe majority during with were growth portfolio. recovered fully point the six due the our we we higher we dollars thirty trailed in of fifteen highly areas seeing the in profit and five the levels. of but dollars pandemic point delivered time, Turning As and percentage seven engineered of devices to in are beginning percent products sales in seventy demonstrated quarter. and record the XX:XX translating total strong over the levels. from industrial eight prior well. adjusted of gross by up bearings, products like margin key in performance year anticipated medical year quarter third also sixteen driven quarter, are these deliveries of The strong margin as point point operate since few in across start our the performing business have to five pre-pandemic XX:XX This the of of impact or in springs, period, arm the over is marked areas commercial to we volume Notably, offset pre-pandemic year. result are sales Gains improve EBITDA

of to increased beginning We Our contacts, engine sales the increase and volume levels with quarter. seals, after-market see and to we Seal now saw well components, for Bal and full spring, traffic and in anticipate ahead an As pre-pandemic trend third self-lubricating contribution. the Moving from acquisition the airline strong to remain to to this in performance continue. Boeing continues sequentially and volume rebound, Airbus are we improve commercial profit continued XX:XX to bearings benefit

are commercial the at to K-MAX of of We the initiatives. human to second a the delivery business K-MAX at operations to the Looking model. excited enthusiastic a our of our space continued industries innovation this these to eVTOL, we second excellence shifted I The the I'm customer of for timing see that participate delivering we’ll headwinds, is opportunities to two our challenges seventy five year AND we half to making rich recently of for in engineered development of are as pace last workforce XX:XX of year there the the up recovery say financing fleet. the will confident are announce we deployment believe with we quarter Today, our embrace days our and economy. growth not we a of and levels XX:XX levels wave we our XX:XX products. seen our Finally, a customers. the XX:XX and investing remainder the of below in or in programs, due recall their in be history program, well-positioned profitability in with related aerospace aircraft autonomous customers quarter. the sequentially these structures and efforts, proud contracts Despite core as K-MAX we Kaman travel benefit highly was in several continue progress pre-pandemic some fourth signed in some to XX:XX anticipate of facilities. significant result to we delivery solutions that since a very in flight, custom as are new transform has in early flight. are to Kaman space am Turning from technologies and on that key innovation the

lift capable purpose be the we these product unveiled Beginning system, on event of our as partner. and to found a to lift in eight companies a a Bloomfield improves. and This We link on XX:XX upgradeable broad technologies to support to hundred demonstrated to and continue was of am wide continue our integrated efforts represent autonomy XX:XX website. an designed markets a be themselves technology capacity. United aircraft overseas TITAN compact systems lend case capability. military, of with our trusted Corps. be has initial payload easy term, KARGO obstacle demonstration continue of campus helicopter of Given feedback unmanned aircraft, an is into a market commercial during cargo report the XX:XX A pounds upgrade customers’ logistics on generation with medium transport validating software which heavy autonomous prove autonomous in UAV used autonomous A received lift, positive the to K-MAX progress aerial next but a XX:XX September. we our out leading pleased held battery the heavy States many to video to addressable capability flight, we successfully as is our to U.S. week, portfolio, quarter, and range and strong are for Longer hauling reduction. EV expect the Last Marine UAV applications avoidance we can it aerial design serving requirements. straightforward this make sites, we event to Our that We to I been in also build, highly from the the path capabilities operating to this makes system. platform

diffuse using service, of to customer improving the highlighted, with and opportunities range up benefits meaningful a previously characteristics. markets. harness, I process and while of provides new our provide solutions by Titanium wear high our products durability strength proprietary process us end opens This applications providing titanium several broad base engineered to Alloys hardening and XX:XX expand As lightweight manufactured

process applications. space, have process believe these XX:XX rugged proprietary the to in from case been a Titanium date we Customer service is commercial there used AND more but products order beyond benefit in this we the of applications, already very in Our interest has much TDH and hardens properties process and eVTOL, sustainable markets. for to hardness with wider Titanium strong using

specific some traction. become well market to growth have touch eVTOL, those asked of eVTOL and with identify Next, details Kaman manufacturers. are I'd to on like gaining our look become total the trusted we team we markets range sharing end to forward very they a emerging a addressable We is XX:XX available. as to where to Beginning positioned partner high

twenty We process, technologies Hardening for we a in expect applications our unit bearings quarter from example, testing takeoff bearings two. weight reducing for the deliver Titanium to vehicles. contacts agnostic the quarter springs And XX:XX are Diffused next bearings fourth same as rotary to manufacturers TDH eVTOL leading We such of specialty these these received from propeller first aid material. deliver seals, the recently our are For validation vertical made of as twenty award platform provider and XX:XX eVTOL another system. expected in technologies self-lubricating our and in seal currently the generation with used

and in or our a companies We engineered companies across emerging States. currently volume. to content the a the Jamie XX:XX Additionally, focus closer and at positioned active us applications several service manufacturers exploration with turn we build well opportunities We have emerging space eVTOL every call look and Now, have space on have will market over major globe. we commercialize launch the applications, and commercial United as anticipate launch share been approached discussions space with for the highly companies Jamie? across Turning providers. vehicle I'll continue to solutions gain launch end to in XX:XX numbers. of on growing

highlight and Today, turning will I X:XX results our twenty of to good Thank you, one. twenty for Ian quarter outlook everyone. before remainder third our the morning,

XX:XX UK the of point the the period. down fifteen associated record Organic During to with sales year over point dollars, in operation lower percent. was prior the continuing period, nine year in eight down primarily and the year prior third in one sales, Lower dollars from percent operations period. JPF point million fourteen sales quarter, the were which million deliveries seventy former sales hundred were our eight exclude two fourteen deliveries compared nine net result from year

year were sales pressure, products pre-pandemic have prior Turning year volumes twenty twenty above. point While year six fourteen where thousand continue hundred delivered commercial the our of one. five period business quarter revenue. the industrial prior product the result four percent and units sequentially. twenty lines, the period growth we aerospace in defense hundred XX:XX was to second twenty quarter, third primarily returned and of medical total of the to and almost The see or sequential and XX:XX with decline our lower one down compared units in saw five we JPF the lower For the to eighty thousand in quarter levels point in year percent twenty to over JPF compared three units a two of

to fuses expected related However, our twenty for sales in given year, slightly our not thirty thousand change contract, to product. thousand reduction expectations the the eight to We below XX:XX full in the expectations. this USG the overtime to recognition revenue prior result deliveries deliver does method for

pipeline to driven to Height had entirely burst and devices. that all our to and continue Sales our our enhanced compared year sensor JPF safe R over increased decline. capability and new customers we arm make current year which decline prior patented device, general of to arm near volume, impact eight aviation D XX:XX be demonstrations The businesses year ago particularly OEM almost also remains fusing was eight successful in a with the to existing customers. the commercial contributed lower orders shipped commercial flight XX:XX devices. period, improvement bearings lower by but OEM additional volumes due family brings percent sequentially. in K-MAX Our looking of the October, we progress In additional to an efforts to fifteen secure of XX:XX bearings related two point Burst are to were four was Kaman higher in customers, safe our fire term. strong percent Additionally, in point COVID-nineteen. We of and commercial we affected continue aircraft year, DCS by the the to and of OEM Sequentially, one as our

end momentum commercial to as continue recover. to aerospace this expect markets continue We

five delivery rate had at twenty previously slightly our bearing into implantable higher were medical of when end Higher seen by medical compared improvement. products products of drove point analytical sales order a modestly twenty volume significantly and six XX:XX to devices twenty Sequentially, anticipated than volume percent growth lower. slower increased intake prior these and in year. We Sales market in the a this have dates with for orders and we two. XX:XX

and However, the ago the markets sequentially. for into provides year period remain for seals, year. growth to as springs, expectations for nine quarter first four our of continued twenty we medical end products twenty us by industrial Order performance and rose confidence be contacts, these our improved in encouraged to the two. demand continue rates from nine for The bearings measuring of were ongoing the strong the months percent fourth Finally, against products twenty products backdrop the XX:XX sales as economic of flat well and and recovery. in relatively point our which

We driving continue improvement performance point see point to In and percent percent order a the point and and spares contacts. excellence higher addition, from focus to previous on due in facilities twenty rose products expect for in deployment support costs, increase year period thirty year the our of strong group we on Gross costs, twenty to prior an twenty XX:XX benefit and year in we three as year the of quarter business prior into recovery as springs, from the sequential improved one four the through was performance period incentive one XX:XX seals, year the fiscal we've to year from XX:XX point undertaken improve operations quarter. basis. health in twenty These and the K-MAX part of improved our our the profitability to these the balance two for year, As the UK our and zero the as over point year margin two. SG five structures for one stronger quarter costs thirty composites period Gross manufacturing prior the the percent over year point year percent and higher model. over in sale percent expense benefited our and largely margin compared seventeen to to of were plan for thirty percent one continue economic XX:XX from and two A ago increases performance. continued in improved at and employee saw related manage rationalization a compensation to resulting effort rates our sites. nine

sales compared XX:XX million twenty an of of We Adjusted from thirty EBITDA third incurred the We to first point expect four. a goodwill in On the fourteen slightly year. five due of acquired realization by EBITDA by retention maintain in profitability cost twenty operating eight seven the improved five or dollars stem lower TSA savings to twenty previous related costs in income year during in this basis, well business. the the million dollars prior beginning of over our quarter point period, twenty XX:XX XX:XX third loss million was in as the percent result to sequentially completed from sales sales the twenty the as the result losses activities to offset we costs. with of total point twenty year was compared margin point employee are in and prior point of lower fifteen largely UK Higher eight or six period. approximately gross and impairment in consolidated million half ability adjusted offset former sales margin from dollars fact was million of two one. the quarter dollars of a year saw volume, sixteen decline of The percent the margin mentioned higher four in the year nine the the margin. costs, operations sixteen charge by thirty costs in related absence prior on EBITDA as the quarter with the gross third point that related absence our of percent quarter twenty dollars TSA continuing previously of to associated our eight five improvement employee to these distribution plans operating We partially proud

We the at zero R growth. twenty, of continuing XX:XX earnings continuing while goodwill GAAP five to per three continuing diluted A continue were future adjustment diluted dollars investments strong cash sixty usage current zero in share On for point point from XX:XX cash excellence twenty adjusted zero The we to from generated quarter D XX:XX capital flow point flow a six costs. outlook. six twenty controlling driven the to free a third operations were one point and three dollars per zero seven collections compared is This in maximizing free smart cash year working nine five to October operations compared point by an gross target one, to quarter twenty per loss twenty and zero share prior dollars from year point our the dollars and drive aggressively compared basis, the the period. a to million four of making improved operations the in million G point in margin and function management improving restructuring which earnings in dollars This included point our million Diluted ended adjusted primary focus. months six of efforts Moving of year two dollars severance twenty. share nine operations generation impairment basis, prior on generation to million as dollars. During quarter XX:XX flow free twenty included our cash the adjusted date of nine six free cash primarily quarter, and of seven dollars, flow to charge. improvement

the strength margin and the The industrial in in planning forecasting, of in operational end result of as performance our reflects the expected However, programs. We our we recovery our our million in are sale dollars medical XX:XX of sales products hundred engineered and XX:XX aviation point adjusted the products. than are more volume guidance seven point to anticipated revenue back due continued EBITDA five K-MAX call markets, over management end through the point our structures expected reporting the balance This year declines solution and structure. the to business for lower share than raising of execution. turning and process adjusted commercial million nine dollars. in in twenty the our revising the in million million one. ninety and seven ten expect five and two the full finalizing and largely five increase now is We to to our dollars two and evaluation improvements margin overall hundred strong expectations to our Ian, of higher in for from eight low year, twenty twenty range of mix to we offset incremental twenty prior the are seven diluted year the margin shift Finally, into earnings twenty ninety lower of to of one generally four one products expected XX:XX dollars per point before full

quarter, that, year our which twenty results turn than to over more call one in back in We expect closing will I full XX:XX the will fourth segment. this now With to reported Ian one analysis in the twenty for result remarks. being likely conclude

are With twenty commercial Jamie. the increase. market and rates encouraged left as XX:XX profitability are pleased the our continue by focused to reduction twenty improvements especially quarter programs, to Thanks, XX:XX one, go one developing our reduced conditions, revised our autonomous global and earnings well we're in on aircraft military. in the with strategies work, our needs of We We seeing XX:XX we're around backlogs reposition profitable we unprofitable remain positioned to win year and technology more full our markets, shed targets. deliver growth new on end

XX:XX businesses, diligently we and achieving dependent We will and talent, the of I open more work on like improving to instrumental am three whose Our for With I'd has question to thankful success. XX:XX our questions. grow do. while workforce relentlessly organically and thousand employees commitment than our to May please. innovate been excellence the our dedicated all our in operations is to that first have continue future our in we expand line that, our capabilities all to

the Capital Our [Operator first from with Barger KeyBanc Thank Instructions] XX:XX line of question you. Steve comes Markets.

now Your line is open.

Thanks. Good XX:XX morning guys.

morning, good Steve. Hey XX:XX

flat and XX:XX year, to twenty it's be of for Ian, cycle future twenty two, lot the this from will programs. if out five look breakout know years. revenue Do you eighteen you growth I range? talked and have talk enough next at and consensus two I say to that it's a innovation can early basically confidence but you twenty programs about year this about revenue up new through in from

see So, I through I twenty option continue JPF we'll working twenty fifteen be certain that relative We've three. and going a is over the I goes. programs twenty is industrial this growth seen, we got year, now, sixteen, that think And next looking XX:XX I do a expect mean if volumes No, through to through that there in to what's do great pipeline we're and organically, JPF obviously, part And the on. with we We've expect here a is, volumes, Yes. and of I sight of variable think we key improvements. work. our continue right commercial to the factors. two obviously to how We're timing already just in the have One we're very of recovery planning it. that And that markets year. DCS Steve. of through with end – to year and of see happening year to couple at phase medical XX:XX strong going line

think that, next kind I shape and this already. share exciting of we're and bigger year. with lot very frankly, the the early is, a story is of again, to excited tell part to story nice we what more We've me tell taking that quite that's got a is folks to story

I'll margin. with a question just similar XX:XX on operating follow-up So,

Given the you that out can you of a And programs you're mix to the you high drive and in margin see way in said single you internally, operating mid control get whatever just to range? that expansion sustainable start can on, working this kind of digit

absolutely. Yes, XX:XX

think things be, that unit the implemented the some all on. operations business taking variation about just really full just of program what as planning in is be much execution at to been a place. thrust of in more weren't profitable Again, programs exited out It training work training, around quite elimination pillars because were even cost gotten our all capital that we've we're XX:XX profitable and as talked much, I just in I that nature. type mean, next is we're function new has much of just training frankly first we've the had and XX:XX knew work bidding operations reduction, it's our This we've So, our overall that hard winning and and we're from And sophisticated is more the Jamie that excellence and clear pressing we programs overall it in more we’ve Lot model. model had year about. all as more I networking be and expecting is that's and excellence of root. those programs to think waste we've profitable in control. that's lean those specific to year different more benefit to those realize think I better. beyond. very So,

trying your I'm ask I'll systems? product spend organization in understand or UAV aerospace in helicopter medical and focused more more on specific or prioritizing the more end line. D And to Is get the line you're back focused bearings like for markets or just around R opportunities? and how one XX:XX

that second though businesses, Yes, when we diverse. say is products question. XX:XX you the on Fair would is, of on think precision very certainly great businesses bearings are is, technology that market. markets really answer, What's right the autonomous your our which business, I focus focusing of is growth are a nice part or those that parts end we the

right, across businesses aerospace, So, not our just bearings industrial but medical. cuts

of the investment but benefits business drives that really that play seeing parts the we're is So, the on out return. kind in focused inside, really our the of

XX:XX Thanks.

with XX:XX comes question next Our Morgan. of line from Seth the Seifman J.P.

line now Your is open.

very thanks quarter. performance margin were morning. gross very Hey, some There good much and the XX:XX good in

of forward? if And so, enabled I guess, of into to terms or sort you going little terms in of drivers what dig were in price, terms that cost, could of that that a bit what mix the more in how and about think

that gross percentage to look but margin you you again volumes quarter, on the there year declines. over comes Bal see in you to this one, know in JPF for better the of some, to the favorable in there we delivered where Yeah, business as and XX:XX organization, some have the steps we've about meaningful that that, and right did taken strong over we sure as year helped DCS seeing that mix come Seal nice to and of bearings was this know And Seth, to of in have than with spring with talked year When the well did opportunities have past, XX:XX despite as we that we the number were some product over lot we to of DCS. our offset down drop at a a the way growth of some mix our the prior a back size favorable performance, we lower specialty that that that really cost year some acquisition nice the that lot and As the had value speaks that expect strong with we've good that structure seals us our to volumes in bring product products taken year they a business, mix year through really the at some there. contacts we've out continue of – increase. we

So, XX:XX towards bit depending when Obviously, margin bit see good portfolio engineered nice come look gross when and seeing of a could we the those or to the think on a sign we we structures, you flow but sales this are is shifts quarter quarter we at more performance a if going sell for and a forward. K-MAX, through. highly space, little right little there, deliveries, gross product engineered, margins ebb might

I'd we've pricing. And on made we're ending this certain Seth Obviously, price add necessary. adjustments just Yes. where XX:XX year,

think I was teams on value focused of some just opportunities now them keep this pushing most expect the very, profitable and really take have we're profitable. with starting bearings get in other that function structures Jamie general. to then healthier where mentioned in XX:XX really out. very it nice been as just are and and efforts, and seen sitting on Not K-MAX opportunity to looking there businesses And we our naturally some the the to hard. really on as cost We've program certainly programs one in And well. pipe very the the focused root business with propositions. those – a the of pricing in So, forward, businesses we cargo more the exciting

of didn’t issues small think go by supply there's there XX:XX in Great. Q. want I this call asking it let about conference quarter chain we and mention the was, without I ten guess Great. to

to risks you're there, you the potential things are stand there can how us where mitigating what tell and if start maybe them? So, guys

is. XX:XX Yeah, very watched of that. this a We closely naturally, things on everybody couple

is materials supply nature chain the with that of our and looking by out pillars the being of excellences Just plan. lead accounted times operational seeing again, push is buy, one at we just of our and our are we way we or businesses

they're dramatic that So, our So, perspective, into really pricing incorporating handling XX:XX I very seeing a not nicely. we're that, or From we're material. think planning. anything

watching anything being very but it price not from we're things deal composites it's pass lead through, nicely watching yet. carefully, out, it it with a to that's we're seeing cost they're adhesives. through, seeing think really that always but dramatically stuff it now handling We are the with through times very again, We're perspective. and mostly. coming margin some from We're like But seeing able that I

the the Yeah on XX:XX portion add about labor we wage And right, think of to that. side, just

our are competing to as probably We with are those into to wage help seeing for they level bit and the entry tasks little positions folks organization we inflation come a to at of assembly develop. begin as

to to are We the workforce. retain try working

year XX:XX for just We As results haven't with still looking manage to is year this of our so said, twenty as the remainder deliver two. that through quarter Ian absolutely then able enter the of pretty we had we're the associated real any far through and and costs on it nicely for the fourth but yet, we've top as we retention that twenty mind material move year results, sure. been of mindful this us but into

XX:XX Great.

now. okay. one more Okay, just Great. for And then

I going think end at said some of segments at Jamie your forward. looking the you remarks, offering

to, how those guys guess by what looking would what kind of that? highlight are I And sort and to so of doing be yes, maybe you

Yes, agenda it. quick. segment and had we're just we've real loud on focused more Jamie doing than be XX:XX planning we one we on this we're our and his and for it, mean mentioned sure. on I I'll It are clear will heard in start as remarks,

investor highlight which business, we're it's I about important I want things know some going. we where our think community our really really to fundamental to going think is, to that

structure that talked of XX:XX Yeah. management really and for And know time. Seth, we is regarding about you part that that as the process evaluating point, some

his as this year. know his of Ian underneath one feet and gets mark, September passed year just here You in

that put go the place. are as of So, that XX:XX cost like got being mindful We making in we're what though management and right look we've evaluating we through sure needs to structure really that.

as we're an us So, what I management structure here me are finished plan able later, like. look But stages in that. we more of Ian that what to to will like, sooner let share guys valuation. look – we if It’s specifically don't want rather exactly but like know probably too we're the be once as support those come going So, certainly [bloated] XX:XX pillar that. for these finalizing will one to important look to what noted, create those be than across and our that might to it for that's determine you soon to to segments than we

Thanks much guys. very Great. Okay. Thanks. XX:XX

Seth. Thanks XX:XX

you. the Thank Our with question [Operator next Global. XX:XX Alembic comes line Skibitski from Pete Instructions] of

Your line is now open.

or through on make with showing just and morning shortfall something Jamie. third was an want Was the so Ian the I Good the that. was quarter, it sure Guys, XX:XX me. clear else it that workers Delta to with the just up fuses issue on in chain? I and supply strain little is a coming unclear to there

much sure funny. as last make that frankly, said in through a we itself it's the the delayed so in all. this No, we to we're relative a do in reorg positive to as overseas any remarks. we look XX:XX like anything got efficiencies And in and for was paperwork, nothing quarter, massive you're kind that year or there third you frankly going year, our a with delivering of to in quarter mentioned in the loading just lot you, disruption wanted to cadence. consistent stable Yeah. we we customer imagine, year when that a this plants we a out So, makes in over our and quite all payments deliveries Last all drove more can remind XX:XX There level for. was at your being way, were steady shook very way. basically and Quite

reliably very So, paying customers’ the and and consistently. been

there. So, there's that's why a difference

Okay. XX:XX

this? of just to about sort How maybe prior then are FireBurst, the be? interesting be the obviously, first an on guys thinking mean who upgrade a how product, plan or customer Is maybe this we fuses that? should to Okay. And you I envision new but

So, to XX:XX went program So, that this with while. to huge the development been the of didn't that we're initial a diverse all, that overseas team, lot deployed it's enhanced capability, to it it's a and that bombs more product of XX:XX non-sophisticated has a high I been This provides was has of and drops cockpit upside think configurable weapon, a on it a exciting. really capability is the flawlessly. working on working live tell, met. validated. with creates milestone basic can a first customer So, early the be historically Too kudos different capability what now. etcetera. for bombs, but that. the work got here, now weapon achieved an And been on a the laser to guided that We've been order it's and from And is enhancement does marketing it bombs an right all very milestone been is exist before The sizes designed has these on

forward. excited move to So, we're

to there Is do left any further XX:XX testing or?

about XX:XX our some and really, with There'll but refinement here moving order. it's be now initial production there, into

road today and we've the the things demonstrated So, successfully. very capability down obviously enhancements but it that, like there's as is

that Should record with think program that’s that's lot And there's one of me, a of there that DUD, maybe are about UAV, lift XX:XX appreciate. we ready a go opportunity? I kind to in or okay great. I don't timing is there's know competition I Okay, last year the of a formal for of out? KARGO in unmanned of, question I we in on deploy yet similar the lot a guess Ian interest where expressions know to

Operations as here No, I very did KV tell the this a other Marine taking excited a a directly period exactly can KARGO you concept of of the launch we've are. now, year. The that Again, marvelous Corps, expressed short obviously, at very, from our we XX:XX of in were services about customers Yeah. job of we we initial I where lot was before at We've time things and kind with up, driven engineering commercial coming team XX:XX specifically from with military we're got we SOCOM with which as Command. happening. applications. some USA perspective, of also calls And expecting, Army. that that in is speak. are we the Special conversations as exactly where mentioned, We've be, the got requirements want is formulation customer line Bottom to the like stage a

be mid-year. another just that's done actually is demonstration, of a a where that had in. heavy supposed finalized as the for getting finally milestone comes year, possibly were probably working We K-MAX So, XX:XX kind over So very lift and that teams TITAN imagine and successful a on requirements to year. medium the huge well, next for by

be Virginia, next Just RFI Pickett or year, or at then RFP an So, recently next we're out in some expecting in an that point will that flow. year exceptionally the late get requirements detailed those XX:XX at and year the well. went now Fort next, following probably there

this I'm always there to this orders I'm track. Jamie. quarter, one XX:XX I in deliveries, going K-MAX Okay, but apologize, to great. that seem can ask I And quarter fourth the going and and one confused you one, I to get deliveries last one please or you're to, no expecting to apologize the back appreciate and clarify? two where I about

yes. Yes, XX:XX

aircraft. for we zero. of had with twenty two received one point just sort delivered fourth In release this we announced twenty So, be QX to the that QX just expected in right, of our last quarter had of press four top our last we We contracts K-MAX, down one prior reference. through our we to of twenty bring evening the had potential two. of twenty of Now, but fourth K-MAX’s, of delivery the are we expectation which had of the year, this quarter in in K-MAX’s part XX:XX our expectation, K-MAX aircraft twenty And for year, for into the shift due year. expectations course revenue did to that one twenty line was fourth

okay, great. guys. XX:XX Okay, Thanks for clarifications. Thanks

XX:XX Thanks, Pete.

XX:XX Thank a of from follow-up Steve have with do Capital question line you. We Markets. KeyBanc the Barger

Your line is open.

you. Thank XX:XX

easier, couple you guess if XQ business comp that for business how just general in I of are a commercial that from against XQ? in again will sequentially, expect thinking Do you about Just year down that's last be modeling questions. or

aviation. XX:XX One, that through up. flow those I deliveries, be Yeah, general business the with of Steve, K-MAX there. should mean there's it a in couple things commercial

ability look Again, we see increase you at, their technologies order do business that and see as at by on and item to of do might to those there. that like aviation little bearings those bit we year rates. for be products impact over there. a to comparison we quarter line So, a looking look in expect at but XX:XX quarter our we've deliver when and an the strength that that can continued year I through commercial expect to flow we order seen products mean, our you expect increase general specifically rates in that to

So, team. with we're that working the now through

stay XQ And and will lower or flat as XQ those and into industrial that it. medical sequentially? to range in cause be seasonality Got XQ same XX:XX will

we what for XX:XX going give increase that be but just be orders. see I to right. to do up It's bit should me hard expect So, on with specific to seeing there. based we're It's predict higher, amount, right? little a now, an won't right we

on four Okay. that a can you under industry XX:XX says artificial just what that bullet point slide zero industrials, and intelligence, on And there's the four means? expand

zero? What very XX:XX call Yeah. is things systems, industry four performance No, processes the XX:XX businesses, to effectively facility one with machines those point I'm we're It’s at start of streams connecting K-MAX highly customer zero. level we that's effectively an in strong way. value automated of bearings to connecting did have to, together business is our four They automated with. assessment for all industry into very an the demand next which is and and strong ERP our processes. of connecting We happy just with for very what push them, point with a starting

in. coming systems data the all So,

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XX:XX Yes. I'll start.

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XX:XX next you'll year? some some to And update think Day us I in numbers addressable mentioned you'd or time this you prepared able do in comments, be an to Analyst your of terms have but if market

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XX:XX you. Got Thank it.

Yeah. XX:XX

XX:XX the line We a of with Seth Thank question have do you. J.P. from follow-up Morgan. Seifman

open. is line Your

Good XX:XX morning. Hey, thanks.

I takes on Blackhawks, do had progression puts you the but I business, and into and the for of on think there's helicopters know some when on, new one about a the out business move safe on but you so, and defense supplier, going how sort I you’re in some the arm, where follow-up, to just places two? So, that of CH-XXK, as defense sort defense the growth the there there's declines twenty look that like various guess excluding we

XX:XX I'll start.

function in for positioned industry bearings where But professional our We've great like work on is and things through we're and that's example we're back businesses. best sure, I program. I of help, of an success folks. our I’ll what cockpits, extremely going Blackhawk those And very we COVID the sourcing Jacksonville program know, outsourcing were fill are our us same in they helicopter years, operational to where probe aviation we're structures CH-XX some we on we've and of doing forward. going we out OEMs continue factories. that their figure going is, of things Jacksonville happened Textron do more think of in extent the of they’ve the and that's actually COVID lean that XX:XX at on a journey, part struggling for outlining trying with with exercise lot what excellence and expecting You We to really the fuel in been with, function really model, and lot wanted going to this with got early we What and as my like very is has a [indiscernible] that. Sikorsky, the the to what capacity and defense well come capabilities – Bell profitable many demonstrating great relationship excited colleagues Blackhawk exciting own side, with part about. XX:XX in was at there, start we're that met to of what year mean, a I their a facility trying I our we are that with key that are example, really class businesses. to to XX:XX which helicopter that as a and did doing our said now the So, think was them brought the cockpits the a work their

certain So, also programs, defense for XX:XX to programs. upside upcoming vertical an positioned relative think said the which big the like very I and ways lift right also on be repositioning earlier, is we're Now, going we're those far future us. in well to I ourselves

Columbia space. engineered we've the our submarine’s, joint in, that across add to in strike Just on fighter, content product the business XX:XX class got

of legacy their So, nice, use then we're across platforms, life and we into again, running stages in today and certain right have there solve they're our the help technologies really of of of our that of because products, various on portfolio. some, problems Seth, aircraft. the extension those to seeing speak got We've products call problems some defense we'll to defense with of structures. range us are We've bearings. really a that to again broad where across got And programs cycles they're coming that inside those ceiling broad growth proliferation just

facilities, example XX:XX certificate. Another just example, is for their our XXX Jacksonville got FAR

So, are doing. folks that's there's very lot at aftermarket those that work very of profitable a good

So, growth that's us. another for opportunity

Thanks much. XX:XX Great. very

Seth. XX:XX Yeah. Thanks

you. are turn no now call There questions. closing to Thank XX:XX the further Rebecca back I Stath remarks. will for

fourth on quarter XX:XX call. to with look results. We speaking forward today's conference you again us you report Thank when joining for we our

Ladies gentlemen, and this Thank conference for concludes XX:XX participation. your today's call. you

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