P&F Industries (PFIN) 29 Mar 212020 Q4 Earnings call transcript

Good day, and welcome to the P&F Industries Inc. 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Richard Goodman, the company's General Counsel. Please go ahead, sir.

operator. you, Thank welcome Call. and Industries Year Full Good to Conference XXXX morning, P&F With Horowitz, Officer are Chief management us from today Richard Officer. and Molino, Financial Executive Joseph Chairman, Chief Chief Operating and Officer; and President

expressed on company's by forward-looking as of for and risks described importation These expectations, and our with our fluctuations Before plans, we or any overseas, remind any patterns, filed related those in related are our periods filings. customer uncertainties, the from and economy environment among acceptance actual global in credit made abroad, statements assets the the global statements by our our others, of which forward-looking facility, system COVID-XX XX-K, compliance businesses, credit XX-Q risks but to the behalf service and information by historical like estimates quarterly statements the of Securities other to debt on public and call performance or and market from including differ uncertainties company's report company materially of products, future could risks you prices, regulatory based changes of Commission, limited acquisition associated various purchasing Exchange the and and today's the and and and debt inventory outlook, reports disruption that unforeseen the technology retail to Form discussed and concentration, and Form goodwill, cause in and results other management, with to the risks the started, and but get strength risks company. including, I'd of energy and in long-lived those requirements, in to to, failures capital to exposure those under current recent delays, health markets, company's performance on states adjustments covenants in subject impairment crises, future including, the attacks, sourcing borrowing upon in outbreak with and most annual the reports on described not other

statements obligation I company publicly the any as to of update would which or and like no forward-looking otherwise. Forward-looking new that, undertakes call to over as Horowitz. or date a Richard. they are now to the statements, information, revise made, Good of only speak And future developments morning, result the turn with Richard whether on

thank -- this pray doing the of here XXXX and Rich, joining results. year morning, difficult circumstances all us I full morning on everybody hope our with continuingly under you these you on Good today and well COVID-XX. are for call all that

of the vaccine of spread Although certainly rollout, effects working is to underway, still harsh which the are help pandemic. we get disease, will past global this the control

earlier here of as following better of past. today, said prayers thoughts use all balance XXXX discussions be this call, anybody our of cash or a and to direct those the operations. mindful with everyone's make this X was the else which business you COVID-XX around. I I've -- and like to release direct In operations the family to Lastly, XX, released affected I'd note the company's release and items, that like the would December press matter, on friends of by or are would statements and a to your XXXX, in and make your results statements answer like should the company's company's I morning the of purpose to of flows, to This includes of order in attention most of your related sheets time conference questions.

we and company's our please the results to in we relating will standard the And have session, only become and secondly, point must forward, pertinent any this that, operations you the morning's Orlando, and financial insist that call. what for aware please this not will we be from will the And move prior conference of is this go may management a happy and directly will not what that answering up done to restate questions anybody to be have directly adhere release. that already calls, to as X be questions condition. open line. question-and-answer said, time. this Firstly, practice be I of this scope answer We entertaining what in at beyond with procedure, any we'd questions

Capital first Lawndale Management. Instructions] Shapiro from question our Andrew we'll [Operator go with And to

you me? Can hear

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gone totally contained and through we is our company believe press of with told we a in and they our for us And have size, gone our are. accountants our our appropriate information our and the release question Andrew, Yes. this through reregulated lawyers that this and this without with accountants. and morning, we've you lawyers we've

or of just are companies answer but we've any our way a So advised said, the size, to been -- that even. that's bigger actually it's if much that's happy other being company with questions, that done,

why do it. that's So we

your was should break to people and due it understand research fourth scope I they do if Other widen the companies, on quarter, to they don't maybe a of for it. problem Well, just particular out. so. there

Yes.

Andrew. [indiscernible] you on the So giving answer. I'm

with we've proceed. on we that's been the way advised that's that's go questions because and do, -- how Let's to your what

understand be sounds is do is you stand currently few company, what remotely, company return the at to Anyway, to for like -- feel you're currently headquarters Can in the home, and in respect want which to where there. plans of as dog COVID-XX. that. the to with [indiscernible]. this. the working in bind normal what manufacturing expectations had working you and I get might for have, the -- guys the manufacturing like And guys they I'd a as headquarters, evolved have operations both are why wondering facilities? for background, operations well questions is stand. your And sounds from just and I'm you impacts its where it things Okay. These still the the each or like normal on of timing facility.

Yes. Go Joe. ahead,

answer I You that, can guess.

Sure. respect at level. -- the the the to With subsidiaries, we're staffed fully operational

at fortunate that each and our are compartmentalize fairly of people distance socially We easily locations. we can

certain when what So shifts, The little to our jobs. at far do some ease next to are And the try that full a offices we there full possible. because for a that forward plan. mean, going we're staff in path -- the -- everyone goes affecting do virus it's and too in no -- there's at same back be we But as point, distance, I once. the don't that the I that New tighter, that our never I little XX% on but will try but minimize that maintain certainly not We you of York. too to the impact in to have again, will a is we have is on at it's -- and would where to this point. we're time, but say want a project be to in production of the follow exactly being imagine our alternate capabilities. tell we're to few I to be really, people to be, the be can't not quarters where things tight into is for probably in office here will the when probably -- going offices, now, schedule People vaccinations, ability -- But and the early that, social

considered percentage P&F financial employees do of presently or the an Okay. And fully vaccinated workforce you or get with of bonuses vaccinated? has for do shot one who initiated initiating have estimate vaccinated? or company And the incentives the

Go ahead, Joe.

that. not have considered we No,

said, to production generate and products impact I the next ability right is nothing. on now, to our ship As

better. So sure not I'm obviously, the But is other feel really people than And that more the vaccinated, what the better. people nonexistent. make incentive our would do operations on impact

are people have and the age state. It's vaccinated fairly the rules in corporate and minimal. restrictions the office, the X In of this the at people been the time,

-- we will as the like adhere So to not But -- it we uneventfully and are as minimal as you, have -- and thankfully, we really But else. can't our all or can impact you company like companies of time. best we at And this else, with thankfully. everybody as what's consider -- on. fairly Joe in operating itself, going both said, far very the everybody but to, really

final my lines. question product back COVID-XX queue divisions and then issues, your into but -- on questions I have the with out And I'll the and Okay. for

press impacting the types Are impacts And perspective regarding and your sales you you which any think about I -- COVID-XX. negative experiencing? to from increasingly your chain, mitigate we release commented experiences companies? of in in doing are what reading regarding you are supply steps your impacts demand demand product manufacturing

I'm sure delays on to we're else of you but We're having coming about the everyday this terms -- in which We newspapers. Yes. is add read problems China. in can shipments the from -- also, having having Joe that everyone same in the

was or country, very up before know be like a adding don't the blame there. on they're very weeks can of work seems is the frustrated out, for and else it on going the things exact to business, even that's into businesses everything weeks, there X COVID. several don't and before weeks, Now X those with whenever and shipments know really they a and West let's happening, a about be come standard. that's even and very, regular they be I who period know it on Canal for now. adding, can down same the And calling they thing. other excuse people on winkle -- within the sit of Coast, on time: Miami days, I convenient backed is what's and quite going been people the deliveries But all everybody X, And several And when something and to shut it latest months way customs it's Suez we're that, shipping businesses, how all when us go, it are

in now not any getting mean be better going with but cases, China I can't any it's may opened it that. is, like than as has I is many not it it imagine but So why dent,

So to Joe, do that? you want to add

Florida with primarily would add Hy-Tech a I just Asia. inputs Pneumatic. from on impact mean, the is coming the of I portion doesn't that have importation significant

As a a system, having a in isn't that. really there sales significant result impact of ultimate distribution several-tier however, ultimately, on

For at centers example, to, Home we distribution stores. there's the then there's ship inventory and Depot,

customers stream. showing get to are So at are stores, in several not inventory levels the the not Because, of there again, being up able product.

other to there steps this supply? effects slowdown continuing are taking And you're some in the mitigate of

we -- Rich. we're Well, thought go ahead,

going say Joe. No, mean, go you're ahead, I ahead, the to Joe. something I am. Go

ahead necessary, Right with ships been to to are now, ships making and there go we and to can. providing should suppliers inventory projecting as the tight to safety we necessary. respect actually we become from past, have There land working to but In control sure a several move that pull get us. we're we've land. become where additional can redirect able mean I keeping alternatives it levers we're we're we possibly over land where stock, hasn't things, We're could can. over the with very that where and also best levels

a but it on now, right So in keeping business impacted significant an it. the hasn't obviously we're really eye way,

Okay. [indiscernible].

on. have several yes, questions go other I --

Go part. said, doing we Yes. bit, staying Joe our buy bit balance been a balance. little a it a be good I'm it's but we the of have much don't to overly it, It's too We've job we've money -- stuff. of ahead, increased our -- safeties safety for fairly -- sorry. ahead want but to most We don't and as to want

Okay. I out I'll have the back several queue. but in other questions,

so Andrew, I don't right can believe anybody there's go. now, on the queue you

right. All

that it pandemic activity. it call made moving about the you Group, strategic the PTG. guess, -- is about integrating Transmission Can as to Gear morning of and generation specifically COVID And what and opened you now and industries. equipment little about new more and healthcare, facilities range in, little you, were acquisition a elaborate a sales food I for talking in current yet? consolidated you've literally COVID production kicked before Products becoming, your elaborate the -- this that? And broader which press were mentioned has does your witnessed cloud So you're industries on acquisition transportation, your particular you and the pursuing this acquisition, of impact industries bit and success actively your you on and talked orders Power in in it's towards kind increase benefits hit, release even said, a opportunities these ability of acquisitions, and benefits up bit Can and you power targeting? this been right You issued the of your an

want in release. to think, it more pretty I the you if you it, Andrew, add we said to well Joe, I mean, color press But can.

of specifically, opportunity kind drivetrain gear. about talking just the really, any a anything for it Transmission Well, that's got an in Group, is Power Gears

doing got is hundred don't know square with that regions to about but we've good Transmission. margins. get and doesn't for we're working once and the -- say there radius and it want gears, have around at I almost very -- of focusing of of establishing an number -- is we're couple representatives of time mile don't them I limitless a a places on this Power small It's what are closely. you us that all focused So we're opportunities matter, salespeople very located not where out

reaching have. out we So region, doing particular What I businesses have be particular that that is in there are and know particular -- may predominate. a we doing any don't industry in region kinds of salespeople that our have to that

Pennsylvania and something the of in there's example, mining in lot else. For area, a area, there's business, West the Virginia

regionally So it's kind specific. almost of

once salesperson So there. in they a got a what's go region, see out we've and

there's of of say wouldn't lot still people fair but will so because really Many a on customers we're that this want. opportunities. good particular focused don't I where want on I that visit it's there's we can amount application say there's ones, So many a but a better, don't still visitors. limitation potential

getting down pretty reverse really replacement positive we have here, But big calls engineered, and given with want So phone we isn't in trying visit another made that, they gearbox what to visit. a in or front the and front actually we're engineer and difference, through the an makes the sitting of getting a to the details whatnot. a getting happy calls -- said engineer of remade you're results sit it how conduct somebody. or with having with Zoom do any there them for But talk where and the of we're feedback we're to do

likely geographic see very us Yes. see is specifics, in that's most but up. in and absolutely question do us It main are customers the opening Aerospace few next not but see now. for more areas of business, But PTG, then, the for areas, it customers. like geographic most to that we [indiscernible]. certain you and And get go very willing to part. to Aerospace the certain very, they're I'll explore seems yet, and not part, the out reluctant

talking before activity, to sales like terms revenues about flow on booked the the the All And these first your to months about aerospace, when in cash -- what an sales the sales to the when generation already horizon compared getting in right. and revenue are of is an move so the a for and X stream? talk are activity, PTG, you you hitting you to XXXX? booked typical order describe increase from stream time Sticking product activity, order I

Joe. sure. I don't know. ahead, sure. I'm not not Go I'm

could rephrase it. the I'm understand not question, sure Andrew. Maybe Yes, you I

Okay.

off release, Boeing they're is guys go or making the cycle But honestly press -- designing of have there sales multiple the or something. no You activity I seeing what an a actually you or production -- of revenue that year is right? order, when more you not when like doing the you're yet. it and order gears of if what months, before because in an stream hits XX-K, making, are in So gets and increase

get and have revenues typical activity becomes that shipment. product in and to you order "activity" activity, horizon time when the trying reportable when an and understand in I'm just sales you So order results

times short complexity be and There's could lead I into back right get weeks, as X as X it the delivery. involved. few it's be of current the could But long depends as of to depending from if that would I queue. if the it's what's a months. not could order just on engineering could a complexity fast lot between could the account, it's which as a go and as a But to production some months forth be ordered. we it that as where X to got current customer, queue, and say, production say, we've just on we with can customer If the X an engineering as into would It being goes X do a weeks. reorder

for And talk order Okay. mix, inclusion you a which and are increased activity. Are these about. in of warranted the sales activity, release got type these activities? mostly have includes press reorders design to We and your engineering or

the It's of Yes. It's not. all above.

a It's of It's little of everything. a everything. little

Okay.

also described, sales an what's of industry the force reps, more issue. really it's your you It's cetera, region in not et or And of Okay. independent where are.

expand map, States are about not United where the to? you're a country to how full the feel in regions represented of the Or consider portion? a regionally get could much space for geographies what there well white represented, is you you're regions where you're and white particular the as If you really there and

ahead, Joe. Go

We're Northeast. Southeast. in strong We're very We're We're in the the in Midwest. the strong the very Mississippi. strong strong east of

the where have the is I going West are Southwest. representation don't yet. say on, and would We we lot Northwest And Far a whole the building in really

And grow Coast. there the you shipping eventually -- West really cement. barriers no are There into it's not for you're like to major

correct. That's

That's correct.

right. All

Just business understand acquisition a kind trying right. that's reportable of this to there. All the subsegment new and nature evolving to of become

as on as focus Boeing well Aerospace slow kind to reapproved. do to both re-ramp. Pneumatic, talking Now They XXX there. I Pneumatic, want about moving on which the the maybe shift are Florida very Florida Aerospace, of Hy-Tech impacts a but got of to inside

are experiencing well-publicized to beginning what months -- or seeing than financial going course, I are press visibility XXXs. aerospace give clarity, new sentences And years shoots? and already, in the talking it's What side, some in orders, of update a be to increased lag? green lag, and, bookings you Is of the and obviously, We a being your are airport activity course, X as have the it there X a a literally, you are on gotten few -- And airlines lag, us see for multiple quarters obviously little or timing to, we at are some release more which orders a -- the or how of are more bit little bailout. crowds an lag? -- serious about is can guess, order already

like Yes. Boeing us read planes I read the that. But point just -- to you, to was that planes everything XXXs, they to that Andrew, not updates. XXX, much this increase and we not XXX calls built like employ. I'm the us -- have them. pretty an in and gives employ, XXX mind think out stuff It's read. for over all we low the you have it's But time. can built going get orders started there It's we you

sell to I got that pictures large seen exactly it. the and planes where very somewhere. maybe can I've is. tell may sitting built desert portion it Joe are that But. a you, in XXX he don't and of remember. know they've So of

In Arizona.

Arizona.

Okay.

it's any from more they optimistic pressed will with good for gets a matter see the later, the We're So half get it's they're orders their like or we're the fourth towards of of normal that doing things. that Boeing until best. in year for whole do over, orders if now that there. second within drop and the a other get a do way like But then And not We're we at very of been year things business product But And, a that, American, the orders [indiscernible]. could the XXX something or that optimistic Delta on to would compared what quarter change. mind it factories great we of could or plane. And we really you, depleted, be being maybe plus bucket speak gotten can they that in such going to the it's some a year other mean, anything to best. XXX. get airlines, their And we it's get to from that I on XXX time, or over wrong. at are lot more better. thinking were

the good we With to different have information my not Joe, that? take. in to anything right say have that's now, do you

until mean, if what ramping towards the into of half next production year. year we're right hearing, see now, back and I and don't I you the the No. up follow Boeing analysts,

wouldn't I commercial we're to QX see on much imagine, So QX. until side, or going the

Right. Right.

Instructions] [Operator

to into any you And are military you -- programs? speced access approval or any additional on being gaining seeing new are

on I that, joe, answer give [indiscernible]. some information you him The guess. can yes is,

manufacturers they're by wouldn't with program. These I use them. with military products something products say platforms. on several Yes. been you We're working mean, that developing multiple across are we've can necessarily I

specific to applications that run F-XX So whatever. it platforms. But doesn't or to more it's across have the be

is a we'll And it had call previously for that of not P&F work new offerings like or line product this, existed? a new

kicking was full -- I'll tool an call introduced was Yes. military into application applications, We popular that as the very it of had for kind just gear. a pandemic

the open the already than up there. to benefit work probably because say, our of we production But commercial is gotten would I demand is really there. faster military haven't So full going

-- demand at have to don't the the get from for in airport. to the wait You come the people to

also upon But -- full not yet. it's So contingent into are which military contingent and we -- manufacturers we these that. will seeing about they're it's production, that, getting still again, see

Right.

Travel you've from your certainly what having are is another Europe European States. in like in and Now and release Europe sales the obviously, wave. United reopening experiencing inferred press a to initiatives we're further delayed

You Have effort. period any process, approval able before, or and it Airbus been progress all does to the cetera, had to you et maintained wait not an this into distance of a and has or during make have nonphysical been reopening? Airbus until into been acceptance presence, it

Yes, we really have Joe? not.

has Yes. their but scheduled, can't We to It to them, not had tools they're wait. we show had we visits -- in ready for facility. anybody

not product Zoom really then yet, so got that really Europe, not is us stuff. being they retracted They're they see our things, And in on retracted were -- that people we told with going firsthand. meeting the the the to point now But lockdown, better with from just talk was and wait. are said They that getting it such we weaken. let heard and that. they're is still Joe and handle -- by to are because it and things you there sold that have we yesterday getting I see people Germany, pushback should was needs a before. this a a Like calls They a or be guess, earlier, soon. good population. day this

I more best. would say, success is the couple So America, will reopened, the have months hopefully, still AstraZeneca so the ago that in vaccine a value. have it's And like the help. But at quicker of the with they will it

and or the it for impediment on things physical progress to tools, the made does you presence for extend Zoom Right. in Europe, of tools on are need or that something remain could hindrance that progress aerospace you distribution AIRCAT does opportunities still progress developing for this in while And or make like? have is like

we've AIRCAT, because of like with some end the it's challenging the but businesses, still, course, COVID. for progress of Yes, of It's everybody made a slow. time

I'll as as back Florida I out on well on have Okay. questions Pneumatic. again. Hy-Tech

Okay.

[Operator Instructions]

Orlando, any other questions?

no are questions. there [Operator Instructions] Currently, other

And believe he Yes. had other said Shapiro I questions. Andrew

does if him back in he let come So it.

Instructions] [Operator

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Instructions] [Operator

with this -- to on going in, stay if we're there's no -- the on get he to get back can't back Joe, call everybody can't going call I he we're if in, not guess.

Yes.

give everybody call. minutes, inconvenience if can't, but else We'll this you we I don't X another on want to

Yes.

disconnected. I it kept talking, got and then,

waiting been calls questions. because finish told us -- X so minutes And again. you inconvenience been And there's want go, disconnected other get here. answer your this we've -- We'll called we -- you on what so anyway, everybody other all no that don't you didn't you We've had answer line questions.

The PPP loan trying -- I'm to clarified. get

and applied have will Can to that. you application, submitted you You certain you do when loan for timing forgiveness, when a believe and the time they the limit provide your of you have forgiven?

we million from public threshold X have a we received received hands. We Anything applied weeks on say? no that is all companies else been you'd $X something heard them any they do response lines. And at officially, their got had in told about or can those And we maybe month ago, a and that it ago all. over

No.

that more notice closely other in at application any given you've submitted look things what for to than haven't they're forgiveness? they But Right. going your

issue -- nothing heard But we've received nothing we since No. of have the it.

Okay.

it So -- do other the in loan financials forgiveness Is and booking do to to considered this forgiven some when on all or you'll where the amount, GAAP a be that are be be this? of income? you this How your begin Joe, this? place. Would to anticipate hit SG&A? you of be reduction going needs -- some of what you effectively

Andrew. income, other It's

last a the a income the be income. to as have number think would then company much other NOL? Okay, result line. other it has does accumulated I it tax that entire losses And will bottom dropped year's be that of pretty would this

yes, have refund. -- be NOL. will an we a for filed a There tax We

while we we -- filing refund, would later in in and refund will expect get for year. a to We be the expect sort -- of some

NOL year-end forgiveness, on And But be to other size? income NOL to the with a Right. booked was loan what is it. respect is --

I can't expect I refund. the tell that a NOL you but speak we exactly, high X-figure to Well, can

will continued other will be that GAAP mean then be the rate will income number -- there the will straight other for after bottom that Okay. the be purposes, the of entire on which And offset, that to does other forgiveness forgiveness taxed be drops income, the income net PPP NOL still line in from tax effect line? the loan the come on your or and

up we're tax a tell -- going It's to income. you're is up. -- is pick end I'm refund were I Well, wise. to can't not year, a as we're show a a you -- exactly -- not event. I tax we income. forgiven refund But right, effect. me It doesn't tax is the up. said other taxable get the the up will end so great still not Having as there forgiveness other can't having The where to -- that, a -- tax up back able that let going

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tax So those were deductible.

-- not it's day, the of end it's a the at gain. nontaxable So

will much going $X.X exactly how with hopefully -- I'm get mean, respect a the we're and and we and quote, that, all to that up handle don't forgiveness, deferred end we're -- to that's to Now I but taxes loan whatever with. it's million how going

Yes.

drops the to even almost bottom line, a share it's that less. $X So

Yes.

know get we're could don't control. we I can going wrong. just We out because don't we be be is -- it. wouldn't could million. We counting don't that. don't be we we ball. may that -- This It's have our to $X if get We of know, crystal a We know

payroll yada, all calculation increased reduced payroll, payroll, If there's things. on yada, we expenses, certainly yada, had a the

Now when did you you loan? you've for request though, applied for submitted a and a -- of the and entire forgiveness, forgiveness for support

it everything we control. we can't is. it's did of We in was the out scare, Also get that more really and required, so question our --

forgiveness, did apply you amount? else. your up you No, doing my application for what your a amount question on payroll ended entire the and everything forgiveness, you was certain like for apply of for apply forgiveness In terms in when based for of you

talked up, into any we'll could guarantee is. be sizable something about -- be of -- I but with But like else, hopeful get have part very exactly we we get be we to to it can't that's everybody I going not specific can't it's when let into hoping get. very it that. but to number, statements about will a it, don't discuss. all we're wht want to you you what think comes more this don't specifics we're we about, the that And elusive that

don't I be it understand think whatever. you All difficult. could why so right,

Andrew, So control. more can't what give can any than answer we I

Okay.

the of goods the had And and XX-Q out year like the do and noncash gross margin Hy-Tech don't basis, you negative number wanted to QX's fourth the we taking much to numbers, to we sold for or losing X-month's which have -- of can, I gross Now have determine gross understand the just it's in in the -- profit/gross quarter, as a to full if loss a the from was and our fourth determining for, attempt our item, on how In the during attempt, of its how easy, get a divisions sales on products? break it a quarter. even taking the whether money a out XX-K, cost feel production quarter don't fiscal is not fourth quarter. Hy-Tech because fourth you and by much your looks because whether of for it -- that

answer, I the explain it but a It's complicated. Joe, if don't you better, little can? understand you why

the margin operations. substantially -- could -- there the there always -- there's are to in inventory knowledge, and reserves. since of and the related front don't to have me. QX make adjustments it we is I certainly generated But in valuations my the I

that's So of I'm in the of lack sure there's there. overhead thing plenty an it's on that that's But the in issue QX. lack sales primary of it's the and of really absorption, going

Right.

cost the So aren't you're products to item amortize to door the right? of over. overhead at other production absorption trying to it going really that that it's is are when the -- the kind overhead a comes a Is than Clearly, not cost absorption. products out of gross certainly But some the noncash item loss profit.

on to get no generate -- not That's revenue. sales product there's we're happening Yes, -- not to here. what's fire

warranty reserves goods quarters? notable other impacted noncash cost no sold there or prior And versus inventory of was Okay. of kinds that also

no. issues, No significant warranty

Yes.

Your know have you every inventory relative prior do to reserve quarter, quarters, I but. you issues it stuff,

reserve the what recall from the those quarter. of specifically sometimes don't adjustments are cleaned inventory I end the quarter. I mean, -- up every at every

headline So and of of sales again, lack is the absorption. lack

here, quarter, of can to and backing to to? third what fourth the a streams bit looks Transmission it lack subsector. backing little again, it reduction sequentially meaningful Can doing create in quarter there our December September best of was the terms revenue like quarter generated and out attributable to compare you that's from sales, discuss trying out the clarify so a we in -- quarter, And from Okay. Group Power

general, Andrew, always in of in is Well, QX, just and investments it sectors, in Hy-Tech our a several is. Aerospace. worse,

a So seasonal it's issue?

a and, that's shut Pneumatic Florida guys on down be of Aerospace, the expected. couple for to Yes. so well, side, those weeks,

is is On QX quite our worst year. even the in it common that quarter, Hy-Tech good a side,

know don't I don't draw many would lot QX to conclude I QX know or change. of revenue a So from I -- how conclusions that

to quarter, for Transmission September prior so you then is by. was versus a year quarter, group, that a Group, see again, us is revenue you're new Power And Yes. you like million QX engineering every year to drop, looks the but to Power quarter, no that reverse see is could Group, this we sizable to a last And the full in All Transmission in swing. the don't months, there and X third comparables seasonality see PTG. was But $X about year-end, minus -- headwind we did the $XXX,XXX attributable going did about saying that in should it forward expect I QX. year go prior so have which

say, But yes, get and is front doing true. that it. we're in would to secure grow amount to we're of unless out fair best able I to of our that, growth in Yes. a general,

Right.

Okay.

Now in you break did provided year -- September inside an increase of quarter, terms like fourth say million out sector about that December doing Aerospace similarly has Aerospace. but did you Florida $X that or numbers of you reported of looks $X.X now. about in quarter, I'm sales the $X.X Again, numbers. I minus your in revenue not In don't million you where it about million Pneumatic, annual did aerospace have in

that So you was is there anything in especially particular for normally? that headwind feel you to, attribute fourth quarter a seasonal quarter Aerospace since that

correct, assuming checked. there was in But expectations QX in no haven't between I is math not improvement to QX our I anything, attributable would and say it's which discernible your Aerospace.

Yes. was [indiscernible] mean, yes, I it -- sequentially, just doubt, year-over-year, was down no it it fairly but up substantial. was

to get think all and due -- don't are with somehow then I it think your get Andrew. correct, answer But at we'll that's out, correct think back. don't I respect, don't I check We'll the numbers we'll all, you. but

Okay.

the the dropped for similarly decline September And a in of in fourth Florida from years there fourth out. Pneumatic Industrial/catalog quarter sequential industrial/catalog impacted seasonality subsector particular for things Now break the quarter. seen multiple anything Was the that has when historically, that not my versus that quarter? you

in the goes it. market That's the with everything ups that It's downs else COVID all and it with is. and

worse -- changes being the year. there's fits to spotty can that really I of I don't some as the nonsensical reason was can of no in all are than -- other attribute wouldn't and going I of in generate very the are QX think, throughout QX it's pandemic think middle sequential tell I revenue, systematic starts I you. Things very, than, this

earlier That's there's midst the of correct. not everything. The -- in the That's close. we're way said this that its still U.S., even what rolled out no Right. I of

like $XX the of days snap a of weeks dramatically, days. finger, went change a $XX mean, have of can that. from to you oil, perfect in I example so X And just and is price a barrel

So it's everything just happens. decides the going down I do that it they the line. stuff something, just to Washington And affects want mean,

So we [indiscernible]

spike for big in or guys in another needle that you generally A doesn't oil move oil the a one quickly. or move way

are. my no longevity past how more on that. can things There's business, predictably Well, and tools our go price, point you now. we've that to seen in like on anything in the some is, to But right and we just if predict of going cannot But way parts the count there's higher the what's also. get way world will

So talk is day as it we we going And every day. see look relate it. and about it at to it to every

out, you their well, a have replace has lost coming you are, order been tools. increased as, and stabilization activity seeing prices we've mid-March, the you there a to in when had as any or seeing the And result and whether here NOL, Right. a ready oil and decent it's in bottomed Are run-up we sector just time amount of Are the that. from there? of and gas they've higher increase things need mentioned

company. bigger any it's enough Not stabilization, we've something life-changing it's Not means. of we've But but increase. genetically by part notice. to a increase, seen an not overall not not for really but the But seen an business, the

Yes.

of all that, about respect which you're of say, Florida do or that's has your Pneumatic. feedback I Depot, need about consumer-facing with inside guess, and that terms I here And bigger to product, Seasonally, now direct in think, year your large et retail which, for for for quarter, have you in subsector Home customer, Depot to lower-margin sell-through fared a their their reorders, the new let's and how restocking they versus, third introduced, Okay. big ago, is their a generally Home selling year? fourth know were how product and been Aerospace quarter you and a results coming cetera, to products

the for the basically as again, -- They're and and unpredictable. -- And they've better than we're been well, customers,, doing up most part. they're down they're

that right, up essentially flat year So say, our slightly Isn't somewhere. Joe? prior has been,

that's the spray thing Yes. I guns. mean, the reasonably well doing there only are

SKUs lines The other doing little a are other worse. actually or the bit

the Okay. SKUs? And offset headwinds has other the increase the spray of gun

has. It has. It

my the something in keep I of probably, to and Yes. clean that's loss speaks out you point, to so stays And to field, which way which left along all reasons saying inexplicable customers. just understand

right. All Okay.

that your perhaps to break that, out fourth and break and end don't of your But help you quarter, think fourth companies other their I have quarter. advisers analyze is that other may my that ask shareholders the the questions, telling you again, advisers able these all are -- I you be research and tell coming you discern XXXX's be don't to quarter, your than, should to fourth out to this maybe revisit things. understand indeed

only not analysts -- attract and isn't to way a You're interest. or and going a attention small this investor coverage help the company, you're to

to not make I'm things and -- shareholders it's prospective better So for investors. easier your

There questions queue. the no in are

to or look forward all Thank and a [indiscernible]. day. Okay. today, we in our We'll you good I speaking and June. May all, at time have it's numbers, be you to QX for believe, touch you your in Thank

now you and you And today's thank participation, your for may We disconnect. this call. concludes