NN (NNBR) 4 Aug 232023 Q2 Earnings call transcript

Good morning, and welcome to the NN, Inc.

Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

to with conference NN. like Steinberg, to now Relations Investor would turn over the Alex I Please ahead. go

Thank you, for operator. attending joining I’d us. Good to today’s morning, everyone, Alex like Investor and business Steinberg, update. Relations you contact thank NN, and I’m Inc., for thanks for

our Last issued been Relations the as supplemental may release which have a If at announcing for group Investor financial results website. well evening, second XXXX, nnbr@alpha-ir.com quarter a Alpha contact of of the as on needs we posted section the release the IR press you ended the press copy our June anyone XX, presentation, presentation, supplemental of or

Felcher, Our this Bevis, will presenters and Harold the and be morning call Chief Financial Vice Senior President and Officer. Chief on Mike President Executive Officer

few GM Mobile a our Verlin including our new Head Segment, of Q&A Solutions. leaders of Officer the new Vinkels, Bush our support available and of have our also Solution, Campos We Gunars to GM session Power new Commercial Chief business Douglas

X to forward-looking our and statements turn will find where information. Please disclosure you slide

I’d language the XXXX. same report well XX-Q for call, as webcast. Form The on the live the like of company’s begin, press conference the to forward-looking XX, December the quarterly on for annual and take on today’s Q&A that ended filed, and, and session XXXX, June contained months company’s ask ended cautionary section language we Before regarding note including comments of statements presentation supplemental as XX-K Form today’s XX, the when release Risk in you Factors in the to report three made the fiscal year applies

and foreign results, supply cash statements company’s are margins, the of inflation, many coronavirus exchange tax operating are and statements our acquisitions, and risks future be subject markets, and cost condition caution uncertainties, contain and of other regarding on to the of Our rates, of Russian-Ukrainian performance presentation should impact the chain control. pandemic the used COVID-XX These will cash forward-looking topics. synergies, with rates, various worldwide or conflict the today which company’s savings, financial outside flow, sales, constraints,

The is such the measures the the non-GAAP in by tables reconciliation measures final certain in non-GAAP also as press SEC rules. contained of section the in A and presentation includes supplemental presentation. release of defined

our turn Please Harold to Bevis. and X the over new to turn call slide I’ll CEO,

we with Thank of new first Good my Alex. the are honor the with everyone. predictable to as few you all growth long-term and you, morning, a NN. strategy. an today CEO and It’s transformation And and our change underway accelerate company. speaking become are months already decisive see that we Today, profitability more you will regarding actions taking embracing

spent working have has I on primarily our personally career deliver to industrial change. We significant of have all majority opportunity technology my been shareholders. driving and industries, in of a value tremendous to the my focus transformational

great through believe four and I company transformations I clear With to this to opportunity immediately companies, public them enjoy. being transformation, interested of leadership business as once a two NN in leading there’s successful at return the position completed a was

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leveraged powerful in be That way. can said, our brand a assets more clearly talents and

to hear plans the operational strategies. begin improving includes and You’ll already our immediate size plans to we’re that and program. new actions This commercial and what increase today of commercial immediately NNs business our are, taking focus

refocusing prioritize financial credibility. organization cost operational to are our build better stronger and structure, Additionally, optimize efficiencies, the we

do We the will refocus to elements drive talk best transformation I’ll stronger our a of become on few in a both and you the minutes. things we organization. through growth basic plan

from on outlined which Now today’s let’s the are review some X presentation. summary of highlights quarter, slide second

improved the of immediate some impact actions cash will our our see metrics. term of near You in flow

have adjusted solid specific the the were a outlined as on our And of sales $XX.X X, $XXX performance, quarter EBITDA. with legacy wins, both in page makes business of markets it terms first for million on business where had markets half In and expanding Focused We’ve awards. new delivered year million million. we sense. in new and pursuits new in XX new roughly roughly won our

right X On a note, free to step the that positive happy of million high report direction. we important in we’re the in quarter, generated marking an flow cash

months cash cash the And our this XX half trend the We continue costs control discipline. for that maintain period. positive and indicate are explicit flow trailing we will second free into outlook as

and opportunities There a where are sales have are highlight utilize attacking to few we in in are support grow to changes growth are profits cost leadership We’ve areas forward, growth. prioritized a ultimately and our vigour. margins we important aligned of minutes. new better supplementing areas we to and implemented reductions also our underperforming these Looking I’ll our margin improve team. change and And by self-fund profiles those initiating our irrespective immediate with

and and flow cash are and but from flow cash business remains We leadership strategy generation increased our of -- satisfied, the our far team quarter, free focused EBITDA adjusted in enhanced that improvement. and profitability on proud of our the are produced

meet the briefly with together company, acquainted this CEO to familiarize had our Began of on many able to visit to our days, globally, get with immediate assessment I through our to our in and few Within May of deck. want XX of to customers capabilities our opportunity XX walk as as the China. effective but like. the my deep in page X of a Europe turn meet I to Partners. plants and partners as of our NN Capital Please face, a face looked also days and focus my well with tenure I year, what XX team. began also large first myself was have and better was

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there given We competitive into higher results. are a vertically have advantage to better clear significant global new need taken integrated that actions leverage our to to facilities. footprint And be and core these our competence

directors are our previously and right corporate our part board of from cost structure collective industry best our our practices of sizing nine we’ve in seven alignment and announced, to As we our as of to governance members commitment, the size.

is X we plan. Please page And turn transformation a to NN level. to at preparing the new focused on a are now higher execute in presentation.

walk to that the Now core plan. you I’d through of components like

flow. it organizational increased an cash around commitment components. free five to profit includes built is plan transformation And higher and sales, Our

talent Officer, specialists. getting Chief NN organization includes to experience our the for past. Procurement and to that better the experienced right. first This been and network I’ve the top using leadership be supplement modifying Chief team executives to flattening position are a the aligning NN agility And my The is This success. our proven in and top team includes I’ve on certain to speed. Operating announced we increase personal a and with highly transformation with Officer worked soon focused

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contracts Specifically, EBITDA area. talk at quarter steps during Fix already actions. annual We’ll our that several our of next $XX we’re take plants we earnings these call. finalizing there’s we’ll completing least these customer the that reviews million plans each several in and our about believe more improve it of a to profile and But opportunity through

mentioned as on cash on minutes free focus programs checked and accounts an cash a our plant a here, align heavily our Component ago, go our includes it as free annually announcements, you’ve we provides flow. within cash profiles, and better positive profitability, years. decisions. several accounts flow delivered forward as company into free self-fund receivable, NN we as as disciplines we’ve box has routinely on investments LTM investing our our number spending for to and sheet. And in basis. growth four our capital not to our and as intend payable, already few generating de-leveraging generation we’re our fuel seen the balance perform better inventory team But this our also positive flow we This just

that to business business open disciplined Lastly, a point significant includes increase five will larger capacity to we’re capital wins taking results. steps and and program approach our new or spending. aggressively taking dramatically require new leveraging drive This wins more pursuing

that our reallocate industries in the to teams already sales we to supporting is most a business months portion XX We’ve win organizational and achieve larger cases. compete talent sales internally in a primarily in tax months know, plan. you of of many XX to amongst growth revenue our As greater today operations a in reorganized

at as slide leadership team cost to in free on cost NN. and we leadership and grow commercial this to cost as turn on our integrate the X and team here like growing generate page focused going organized business On the teams introduce faster flow. I’d to you to X, it, And is and we presentation. new winning productivity the cash more together operational our have Please

this company. the veterans promotions from of strong team internally read our industry developed here, can you As been through has descriptions within

underway new XX are implementing supplementing XX plan which just and new few a this direct of in transformational been before experience, aggressively most I’ve with proven as in And These mentioned, Verlin, previously. and leaders worked and this our years NN, transformation have we’re bring expertise, Gunars, Douglas, at areas. with Jeff, strong their stage already whom that right over each industry on here have leaders with has to four team respective accomplished

these number our goals roughly goals. wins on And so sizing I’d wins to, like track Year-to-date, as minute. to And I’d of X. the business provided are process to our in a turn snapshot level. already stage. slide you a for internal here, we’re higher on Please would our cover them this like brief We’ve with new business conclude of

global Our a team we our expanding now now. a efforts is underway with win plan rate. larger at to already through larger And thinking are right

electric electric In we’ve the happy and that for the half about been segment power has vehicles largest we’re components first that. won very steering business

serve, our into new vehicles, electric expand braking for steering to including markets, that product the We’ll medical lot areas but will components shielding, see market like also We in we a like we where also system opportunity. connector, of look electronic and power key couple. name areas concentration expand profitable just a currently in to

in our the design now Mike we’ll discuss unique turn and to over Felcher, assemblies industries. end. call second the detail. at President and questions stampings quarter very to machinings, Senior to ability manufacture precision your I’d many Vice take is Our CFO results And submicron to then and Mike? and to greater like applicable

loss $X period $X.X improved Thanks, the start customer standpoint, ability year. last roughly operating flat From remained to million lower last compared million slide $XXX.X on And from $X.X to that Last quarter. second versus captured We year drive price quarter to of approximately pricing the our X. and also operating year included a profitability the inflation million favorable million. compared of a for second year settlement sales loss as helped everyone. $X in our of of to benefit prior quarter million results I’ll good Harold. offset volumes. morning, stronger Net

this combined volume, the lower benefit However, the mentioned previously of more offset impact pricing was by than customer with settlement.

adjusted million million income Adjusted prior million the slightly Encouragingly, approximately was cost $X flow million below through $XX.X the second EBITDA Adjusted our last seeing adjusted for impacts year’s operating $X.X compared quarter targeted $X.X the $XX.X quarter. of was reductions totaling in results benefit income of result. we the to year. from million are of operating the to of EBITDA,

the the areas As of to progress we continue business. we discipline addressing underperforming from and through further to year, expect benefit cost

increased impact Group volumes X.X% our Turning increased the lines the Sales Mobile increase versus was the slide driven prior existing million. improved business improving from primarily pricing of new in period our $X.X by XX. by business Solutions year The

Mobile in decrease was the million based solutions quarter of leaders. EBITDA public solutions and Demand offset we Wellington in million by challenges by end facilities settlement supported adjusted our second of $X.X This our to macro in growth commentary Juarez results. half, the be $X.X EBITDA and the solid demand helped enter the industry performance operational results as we was environment our from to compared time of our JV, by performance which the second customer prior driven the XXXX. year. China partially challenges mobile Profitability favorable adjusted some and given market to anticipate other though for should steady the do not one made

implemented. Juarez Wellington performance improvement being facilities expect are operating where and we our plans improvement Additionally, in

Turning decreased to and we general the sales, from closure due the segment Further, our rationalize year-over-year, drive component to Solutions sales Power customer driven of profitability. as line housing inventory future starts electrical top XX, facilities adjustments. part in to on the decreased footprint volumes X.X% slide performance industrial by two impact felt segments and primarily slower

in Sales savings in Pricing prior period in to cost our to compared Performance EBITDA better the compared combined operating million which adjusted profitability. impacted resulted million $X.X with with quarter, closures plant year’s year. last pricing reflected $X.X of associated positively the benefits

to be ahead, first half levels second expect in consistent demand the Looking relative the of year half. we to our

and that already initiatives are cash flat offset expectations flow cost demand underway. are the to Helping

Given of flows. and goals cash the be to prudent we management our and while profits, will diligent capital, demand market explicit our intently focused working expectations with improving enhance our our on

turn to XX. Now please slide

encouraged the in turns Capital are third X.X metric. in we flow Working basis. to upon from trailing as second previous highlighted, improved X.X report we’ve on that cash a consecutive solid, well Harold efficiency period positive key this quarter, period for As as to free XX-month turns the improved the quarter marking the

Now turning debt liquidity the $XXX.X first metrics. quarter of a XXXX. sheet snapshot second quarter million million versus at to the $XXX.X see of and slide XX, of can you balance our the end was in Net

end EBITDA to of of ratio stood the the Our quarter end times net the adjusted X.XX compared second at the debt times X.XX XXXX. at to at of quarter first

equity raise. we evaluating a that were communicated potential previously We preferred

for lack However, generation, with positive raise. for proceed continued any preferred decided new not given of we our capital, cash equity the to expectations the and immediate need

Prudent Our transformative focused for plan generation CapEx flow consistent free is strategy. cash in part around our

to business will our while strategically spending deployment drive funding more the to We shift appropriately reallocate in capital requirements towards near reinvestment capital maintenance term. and growth, focus still

opportunity improvement. spend working modify through significant capital we plan markets to cost executing are optimization, There is improve our and concurrent As we CapEx our liquidity overall operational a within reductions our we our is costs in and profile. leverage our expect that right maintaining improve strategy, aligned our the facilities. liquidity And to team now complemented the able and to effectively be while with allocation,

of outlook the slide customers we’re our million $XXX roughly $XXX outlook. net revising full expect and range prior million a Adjusted in over roughly last the $XX $XX of of million, the range flat in $XX to prior to year. year. the flow year, significant $X range and EBITDA million free peers, to flat for many and turn Consistent with sales year our of our the million in improvement cash XX now Please to million

demand both industry implies for mobile segments the half and as as with back level seen for forecasts. is year-to-date, the well far of guidance solution Our consistent power thus that year updated

of flow disciplined outlook volume, EBITDA and and lower the adjusted cash management. impact cash our reflects Our expectation free

include uncertain guidance timing. $XX approximately Act Our million the refund CARES to tax free flow due of not does cash

Harold are short for reorganized build while been conclusion, leadership see here a a you to together have action aggressive and team only time, In can swift company. our we taking and stronger

path and right the long-term tolerate is and and to we profitability. Our focus team, significantly capabilities have and our clear growth platform

of We’re you. with looking all journey this to forward sharing

back to call turn operator now questions. will for I the the

Instructions] Street will with from Lake Brown Our Capital [Operator Market. Rob question first come

now may ahead. You go

congrats on all and progress. morning, Good the

Good morning. Thank you.

I’d excellence. maybe, of to I to the of your costs and to plan number opportunities the cut things of view on take terms get kind here. in think that’ll you kind how of guess your a enter operational of see of And like long You kind ability get kind on you just implemented?

question. Good Yes.

have few our on a cost do some are elements. agenda, company we have the So of that areas is One explicitly we underperforming dilutive.

And special so getting they’re attention.

some that. an cliche, You is an we the are situations you and but use, of could want element that element cost do them bleeders -- dilutive call causing held or to have whatever of us performance those stop be highly back to

So fixing underperforming than which of of our I you contracts, rates. our million our Mike that words, combine we’re is which In of EBITDA. if alluded with problems, and million $XX problems that of results, zero it’s you both cost below profit have number greater $XX other one, some kind in the customer reported carrying

And not so net those costs, productivity experienced that’s him offset materials the announce us a and Officer having obviously, routine had Number every where we’ll least two, productivity. shortly, Operating agenda we’re program, and have their we and at they procured very have goal, to a -- conversion Chief plant our at on the is inflation cost aggressively. attacking having cost joining new

kind that So one of starting scratch. is from

asked you I think timing, it Rob. about -- will

run on on I think run that that get full problem the rate to full like quarters in in fixing get say up to a my while first one we’ll experience rate, I’d four takes children. one the little to

plan much -- of -- quarters. or three kind game immediate more have this We two a there

So elements. the main two are those

two have of In terms going. costs, of the overhead is things SG&A, we kind which

benefiting and to that investment We it. from to grid electric invest team we’re and having is grow vehicles have really our electrification, in Power business

of cost structure kind really our stable. we’re one, Mobile keeping the And

engine there electric there’s from combustion to kind of number is the of made transitions industry internal a vehicles, in the As vehicles level, the top transition steady. the

flat structure focused the And A the vehicle our on so they’re week being overhead little guiding said the customers, stronger filers kind if to that softer realities the world, and the our a this guiding out of to market. you in public half. -- really half of we’re Mike nets a and little a And they’re us of as will, in our to in rightsizing world. lot first industry, electrification second

right now. structure it, if will, I appropriate to So think Rob. it monitor SG&A our But we’ll we we adjust is need

think demand environment kind I I you it and on demand seeing a seeing of what’s a the And you’re down? of a of the I demand bit of Or the what it’s are touched -- down. the Good. at guess you changes from in you any as visibility there. characterize terms stage tweak how guess, would of guess Okay. that But of customers, tweak And sort this you’ve I much seen? sort environment? environment what’s indications sort

Yes.

reporters, of a then our they’re of So the of you here. the Xs vehicle public side, Xs, slightly Tier on answer there. the softer part chain arbiter the OEs, are embraced vehicle half Tier you all we’ve will our as big the painting who into if and have makers supply that those And second guidance

look in bellwethers also. the a at hand, internally if And guiding electrification, -- to we’re other that grid seeing second into stronger seeing that On half. we’re they’re investment so you the

outlook So run kind net rate. seeing to an of flat we’re our

wins, to months rate our about to themselves. from really new wins business manifest run XX new contribution XX to of business terms In take

And months its the contributions bigger meaningful future new that business change have in of win, But a half in rate. We then the amount to the from of this to essence, in hope going half, are now, the to run deminimis our with business XX right that ago. year, XX additive be wins to program. we second in don’t second new

in we guy have we put and good a have So guy net to flat a out -- a a Rob. bad outlook,

new a environment. to get business characterize there. in Okay. things business maybe on there you of sort terms that’s, you’re you’re of of some in of give months maybe the is on maybe activity kind that’s underlying us and Great. EV And how just how you’re on the And would the color in said, lot gaining just seeing it guess, could but showing how some I you’re share Thanks for pipeline? the and then you to color activity, like XX grid, the you seeing and revenue, new where business new growth momentum sense coming and

and with going answer I’m piece our to a is actually Verlin I’m that, Officer. us, then pull in of going who who’s Chief Commercial Bush, call Yes. to the on

On the more amount and class by electric of -- the rates on rates, as powertrains, information platforms, vehicles itself of government to tremendous influence and us rate fuel engine the EV substitution bid a or vehicle alternate vehicle definitely mandates get combustion changing to modernizing geography powertrains their platform. out substitution are substitution that and manifests And vary we on looks but happening. and chance it’s our of by people that the there as from on new to

opportunity in because rate an up a substitution there’s vehicle a on for transition this opportunity quoting So this deployment. ends being new us

is mute. So invite that come make a is for off need company. regards how like might environment our -- to of With Verlin? good to we’re us the You comment to macro for I’d here, to Verlin doing, good

you, Yes. Harold. Thank

where and are going, doing actually pretty far markets we’re we’re doing where of our several As as well.

and down, we’re some We’re our a seeing now applications on of applications, lot right EV commercial, in our grid staying focused electrical activity are residential, but of our regions.

and some guys recently there So some changes we’re in are made on areas. focus staffing focused hired seeing key that We those growing some in out there.

activity So in and we’re more business new those wins seeing areas. much

short term, transition markets we been make into EV current and components we to capitalize continue we’ll -- capabilities while. on with some that In definitely will the on those focus We’ll there be our do space. that were for that more that and as and well powertrain the in a in the we’ve capacities see

there’s a think I So sides. of good lot both news on

begin of us we’re our We’ll in seeing in laying lift all all of new now out -- we’re to after be this markets operational our is going more the restrictions the our a think to regions. our year. that help plan with of effectiveness to in I in expand presence medical competitive structure October

area we’ll another be focus that will that on. So

you, Verlin. Thank

[Operator Instructions] Zacks question Kerr with Tom appears questions. me; come our have It Research. Investment will further Pardon we no next from

You may now go ahead.

medical And just Is guys. morning enough on big last road? forward be where good that segment following market. the opportunity that business the on a the up Hi, a comment down third would going

It is machines you people biggest a that segment. machining And machines types big for talk end we I’m and market if the types machinery side. have the buy, that And at of in-house on to you that the look if transportation we of these sell is the types talking of the medical. actually now second,

The stamping in side, today. a in touch roster that market the time. the medical for we’re did active that and we’re that On in XXXX of a have the had did not business and still line-up still largely and divestiture long a business, we customers medical we’ve

that think great machining, alternate on of So and our tools, think stamping, for submicron you blades, small and precision know-how precise. is machinings, and submicron a cutting very the all the it’s implants, use it of assemblies stamping very both and meshes

capabilities vehicle of it has world. be associated pressures The of a higher easier thing. a fuels than lot perfectly. And honest, fits our sort vehicle this atomizing and with world the To little it’s

in for place weeks. a non-compete in few on, glove. do more like a us compete fits hand that’s have a that touched we regards to Verlin the ballot a it With not So

we’re what still re-enter So end. do, operators executives have we’re We ready coming to to there. what an plant And to already do. getting know that that to that know seeing certifications,

to We dust have know an catalog off. to go. We where old

So initially, I than But hope Tom. it’s that, it becomes a smaller segment.

that for leg goal a Verlin’s And for that higher a would rate. going with line start just to So a us at jump we of ours. it product a tool obviously, a in could will it’s grow to be too. while. our But really acquisition, be small new But company be a

Our get wins per overall new goal XXX. to is year XX% on

trying So do. that’s what of kind to we’re

get million do in, we’d around XXXX, $XX year vintage being in. in, to of year So year, and this wins every like year it

a dollars add So with business. that’s over up. million periods, few won a year us, few for you’ve And the going to hundred

parts to getting do defense, aerospace small we’re these aerospace, vehicles, the very large grid, of organized good us. in of we areas a all have So market. parts of And that course, market are -- electric for medical, shares

And we go more opportunities thing capacity putting so on have more street feet after simple that with right we’re and have. know-how open is the to now we say to

And that the great. for of is it improvement should -- kind on to after back room a on stuff? COVID where business, sounds note That there China separate of lot Or the the still where all area? that is be in

Yes.

a biggest there’s this for quarter week big The primarily follow Mobile do So the for business small vehicle doing well. is had second the if fine. rebound -- that as the of part and China the a plant we China Mobile quarterly side, results we’re have it from us is for although is with on in market tied into But vehicles filers. It Power China. there the in on China, in the public side, you

us. So doing market is for fine the China now vehicle

into We’re vehicle manufacturing. a that supply chain participant

we out. kind us, beefed of profiles our And we products customers are inventory their chains on we stabilizing up for that see still make. supply where so And now of leaning

And we so normal see supply operations. through pull us more normal chain in

has it’s Campos on again, So And that operation you reported phone Douglas, traditionally come the off him. who also into there? mute could we make have -- comment a out. if smoothing and Douglas

Exactly Harold. that. Sure,

of they -- To XX% versus happening see new the the from big XX% the ICE. We a on vehicles. penetration fast a to incentive EVs in see energy what transition the XX%, China, government incentivize, we also call there’s there from

see we very last what not maybe said, Harold year, So are QX, little for versus closely to the QX a year, overall the volume compared up we bit monitoring improving the lot. in a still

still we do lot Certainly, there. opportunities a of have

capacity. have We

China our short We’re exports, from drive big There the term lot of customers. a up. capacity might that open in they trend have a working the with also volume is exploring and that

in we are right on China now. that those the trends So see going

segment. I there Power Any then on talk the situation? mean, that macroeconomic year. residential the about And Or tough residential on the also And that? market? of and thanks. the Great, and one commercial internal of construction sort construction is trends being advantage markets all you taking Okay. just guys not was always of more commercial more type question issues

Yes.

I’ll Gunars then Obviously, been construction residential Manager the the residential, been has Vinkels and commercial, our we has General well-reported So that, phone, is part areas, of answer in business. down. are have North who of and Non-residential these Power obviously, America better. on

of For creation and the There’s some grid town vehicle use can same us, electric a we’re electric creation take electrical of that driving as the there on and the heavily grid and tied information out house. around a into vehicles. a heating the an electrification and smart that of cooling is grid

these it you decide So start to house then have network electricity charging during up around driving and worth is book a the of and equivalent draws to they and houses that charge. the of

biggest they in lot of so a here And if that of put information row. but I third investment, And growing grid lot the know week growing a on that the a reporter this they topic. this gave you this, Itron. their needs don’t they’re on read good information I know was and quarter company,

like to that’s come of and of off here construction has happening Gunars? Gunars expand, kind multifamily, comments also. the trend. been of been starts thing mute electrification have that’s of because to single-family there’s With overall, steady. phone, Gunars that the down, on is the couple on make -- and So needs network network to but the independent non-residential a electrical is regards again, construction I’d here this

Yes. Harold. Thanks, Sure. Sure.

on of there. the that side see bit that earlier that some to of we have activity quoting have around some shorter front processes So short-term the the done of are yes, that up. the take being than on for a somewhere related hit to news a some launch quoting those the industrial but do seeing the can more ones that absolutely it right. that to lot ramp of and ones And the largely that quite good related had there, time XX a making those are down, supports and grid work XX, of you types is residential Harold has impact activity mentioned us, opportunities We some actually products classic that months. impact we’re There’s out be are

be five time produced to months, These can frame. closer be three parts matter launched in a can and three to months’ -- of

see to year. next of So early that we the hope impact

Okay. at end question. or for some the a more set year Is one color. get goal I next there to the Great, And guys quick point had year financial thanks you think Have leverage ratio that? something X.XX now. or of by you past, the target? like the in

to want take you one? Yes that Mike,

Yes. Sure.

we said would reflects set an as ratio forward, We a and improvement Obviously, we’re leverage specific the we leverage forecast the commentary on and -- provided improving focused haven’t as in the our ratio going target. move we -- in forward. reducing liquidity outlook on sequential

all Okay, questions the thanks. That’s now. I for have

Thank you, Tom.

back That’s Harold remarks. have all turn closing we call the time for the allotted questions. for I’ll to

plan, with And forward you results, report. reporting point. for Thank to health you you our on-going our the at everyone and much our call new we’ll of very transformation time. we operator, markets. well your wins the our speaking as Thank of for end this calling quarter you. and end to next as at the Thank on our again the in listening look And company

Thank The attending conference has concluded. for today’s you now presentation.

disconnect. now may You