Surge Components (SPRS) 15 Jul 192019 Q2 Earnings call transcript

Good afternoon. At this time, I’d like to welcome everyone to the Surge Components Second Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

to Vice call President. like Lubman, to now Company’s the would turn over the Steven I Please begin.

ladies Surge’s earnings second afternoon, quarter Good and XXXX conference gentlemen. call. Welcome to

and including may Please budgets, future statements. anticipated, believes, expressions anticipates, to and expectations. growth similar forecasts could certain note Words discussion similar performance, statements should, today seeks, identify other of statements that forward-looking respect estimates, our operating these statements, intended and intends, or forward-looking without and to such limitation, with expects, words include are variations these of as

the of in wages, including areas public certain financing changes support demands, and policy continued Forward-looking result update of capital based limitations, forward-looking of of industry cost such guarantees the the and terms statements Company’s made the differ economic revise assumptions. of trade results Representative of or in by the statements of made rate governmental the to or conditions, the interest and and and the of statements of ability employee availability Company business. not receipt on in to and requirement, and general information, may customer and Company are outcomes, competition, future its operating its performance. on policy expenses expand any tariffs, as management forward-looking expressed customer projections, of otherwise. management statements are and based on to and performance, those time We a include business, in future Company’s shifting estimates, factors capital events, at Actual management by undertake risks, and changes trends, the from uncertainties, these and occurrence the without materially examples the assumptions obligation new beliefs, no amount cancellations,

the turn Surge Ira Mr. Levy. to Components’ like to conference over CEO, now would I

thank Surge’s call. second gentlemen joining quarterly morning, Steven. you and and you, Thank conference earnings Good for ladies us for

just you President Surge. Lubman on is of today call this heard Joining from, Steven who me Vice

We’re To update through and our talk operational touch provide quarter second in our performance. I excited run begin, to will few performance with financial briefly an to detail. then I a shareholders want highlights. on our on

In a Surge profitability the strong to to Company's in the year-over-year, performance. sales year on profit to on grew XX.X% deliver scale of performance XX.X% gross and $X.X sales quarter, robust Net increased income the a growth in approach delivered focus prior customers. the continued strongest existing year, new a us another also maximizing helped on second profitability. our versus robust million A history disciplined net and the in six first our well as and global testament and months

worked some mitigate diligently the on tariffs impact We to our of also of growth.

measures proactive the a pass costs to to our take of to the customers manage Kong deliveries to to portion move directly Hong along and some on continue We customer impact tariff revenues.

a total Our to revenue Company's continued new our Leveraging providing our customers to grow success growth. commitment and product helping new we of sales diverse is our supply and to innovative pipeline grow with relationships an increasing future products, ongoing new footprint. globally international world-class with continuing volumes, and reflects relationships, strengthening are drive the solution, customer this chain

our our additional new successful to launch exploring Surge our program Europe. customer In after Challenge areas in future, launches engineering channel. Brazil, meet are Of sales in of new this actively we and in we other teams division, including modified and the needs division, plan sales launches our additional in developing note, in products base; growing deliver of the are a to program

from them half in We opportunities of expect expansions to the have year. second the more color and these come on the that

automotive customers its to make the business. had The generation cause significant represents by book we that and compete for for potential space, to continues automotive Company already, strides various in business. wait industry to successfully also Surge car the great [ph] next an models approved

and approvals automotive samples tested other by expect we being additional currently going are forward. also Our customers,

three Additionally, supply which our competitors major only for manufacturing in global partner recently patented other chain. a automotive for new the are there product application,

getting in currently feel it customers automotive feedback on addition strong are be and the market We process this for to of will that product our portfolio. product a confident

As right efficiency maximum our we ahead, compete our focus ensuring the in to to that have look success business. create remains we on and resources and

believe positioned offering very excited is continued product supported growth, that for and distribution the Surge complete global we for opportunities the well and by sales With network, I'm is ahead.

second Before let the me run I quarter to quickly through things for questions, turn financials. you over

sales As increase sales customers XX.X% driven attributable is was earlier, increased year-over-year to customers. prior by to $XXX,XXX million. $X.X certain strong being period. new $X.X volume with sales quarter, year-over-year million existing to XX.X% Gross margin. profit sold to to over products higher increased net this mentioned I volume And in at an of the the primarily and growth This increase profit year

percentage XX.X%, as net margin sales as of profit period. strong compared prior a remained the in XX.X% to at Gross year

or Selling primary increased second X.X% the $XX,XXX and year expenses period the shipping to over quarter for $XXX,XXX.

or in the General and to $X.X administrative quarter. expenses million XX.X% increased $XXX,XXX

available $XXX,XXX period. a income shareholders as to common to in the the shareholders Net $XXX,XXX net year in income was to of available quarter common compared prior

year compared $X.XX Earnings $X.XX per as share in period. to prior the was

various value. long-term Fortune that are date we to we deliberate are across thoughtful customer take the Overall, to we to and am continue investment maximizing we a and on confident made globally base, including leveraging about that technology companies, robust shareholder to industries. focused XXX I approach creating a will we profitability progress delighted remain ensure

We Operator? welcome questions. and appreciate your now continued we our support shareholders’

have queue, the no And remarks. we Ira call queue closing as in like At anyone in time. time, this in for to to now questions And queue. have at we we any turn back no Instructions] would do have questions [Operator this not we

Okay.

much thank joining that So, and shareholders aren’t for very call me call. questions, asking are you on for let any the haven’t but today's any say

so Surge the success. continued thank positioned for we forward very We next We future, you prospects well to business is excited update much. on look an you about with are quarter for providing believe and the and the

concludes today's conference This call.

disconnect. now may You