Key Tronic Corp (KTCC) 首席执行官 Craig Gates 在 2019年 第四季度业绩 - 收益电话会议记录

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Key Tronic Corp (NASDAQ:KTCC) Q4 2019 Results Earnings Conference Call August 7, 2019 5:00 PM ET

Key Tronic Corp(纳斯达克股票代码:[KTCC])2019年第四季度业绩收益电话会议2019年8月7日美国东部时间下午5:00

公司参与者

Brett Larsen - EVP, Administration, CFO & Treasurer
Craig Gates - President, CEO & Director

  • Brett Larsen - 执行副总裁,行政,首席财务官和财务主管
  • Craig Gates - 总裁,首席执行官兼董事

电话会议参与者

William Dezellem - Tieton Capital Management
Drew Thelen - Crimson Advisors
Sheldon Grodsky - Grodsky Associates Inc.
George Melas - MKH Management Company
Michael Hughes - SGF Capital Management, LP.

  • William Dezellem - Tieton Capital Management
  • Drew Thelen - Crimson Advisors
  • Sheldon Grodsky - Grodsky Associates Inc.
  • George Melas - MKH管理公司
  • Michael Hughes - SGF Capital Management,LP。

会议主持员

Good day, and welcome to the Key Tronic Fourth Quarter and Year End Conference Call for Fiscal 2019. Today's conference is being recorded. At this time, I would like to turn the conference over to Brett Larsen. Please go ahead, sir.

美好的一天,欢迎参加2019财年的Key Tronic第四季度和年终会议电话会议。今天的会议正在进行中。 这时,我想把会议转交给Brett Larsen。 请继续,先生。

Brett Larsen

Thank you. Good afternoon, everyone. I am Brett Larsen, Chief Financial Officer of Key Tronic. I would like to thank everyone for joining us today for our investor conference call. Joining me here in our Spokane Valley headquarters is Craig Gates, our President and Chief Executive Officer. As always, I would like to remind you that during the course of this call, we might make projections or other forward-looking statements regarding future events or the company's future financial performance. Please remember that such statements are only predictions. Actual events or results may differ materially.
For more information, you may review the risk factors outlined in the documents the company has filed with the SEC, specifically our latest 10-K, quarterly 10-Qs and 8-Ks. Please note that on this call, we'll discuss historical, financial and other statistical information regarding our business and operations. Some of this information is included in today's press release, and a recorded version of this call will be available on our website.
Today, we released our results for the fourth quarter and year ended June 29, 2019. The results were in line with our announcement of preliminary results on July 24, 2019. For the fourth quarter of fiscal year 2019, we reported total revenue of $105.6 million compared to $117 million in the same period of fiscal year 2018.
As previously reported, our revenue in the fourth quarter of fiscal 2019 was adversely impacted by disruption in deliveries of a critical component from the supplier in China. Delays in the ramp of a new program due to customer driven design changes and temporary reductions in customer demand due to concerns of our tariffs and trade tension between the US and Mexico.
Moving into our first quarter of fiscal year 2020, the disruption and delays experienced in the fourth quarter have been largely resolved and we expect revenue to increase. Despite the unanticipated declines in revenue in the second half of the year, total revenue for the full year increased by 4% from the prior year.
Total revenue was $464 million for the full fiscal year 2019 compared to $446 million in fiscal year 2018. For the fourth quarter of fiscal year 2019, our gross margin was 7.9% compared to 8% in the same period of fiscal 2018. The reduction is related to the decrease in revenue. However, due to the strategic investments and increased operational efficiencies in recent periods, we were able to reduce our work flows by over 10% from a year ago which allowed us to maintain similar gross margin percentages including with $11 million less in revenue.
We expect to see improving gross margin as our revenue levels rebound in the first quarter. Despite the adverse impact on our bottom line caused by the sudden decline in revenue in the fourth quarter of fiscal year 2019, we remain profitable. We had net income of $800,000 or $0.08 per share compared to a loss of $2.2 million or a loss of $0.20 per share for the same period of fiscal 2018.

谢谢。大家下午好。我是Key Tronic的首席财务官Brett Larsen。我要感谢大家今天加入我们的投资者电话会议。在我们的斯波坎谷总部加入我的是我们的总裁兼首席执行官克雷格盖茨。与往常一样,我想提醒您,在本次电话会议期间,我们可能会对未来事件或公司未来的财务业绩做出预测或其他前瞻性陈述。请记住,这些陈述只是预测。实际事件或结果可能会有重大差异。

有关更多信息,您可以查看公司向SEC提交的文件中列出的风险因素,特别是我们最新的10-K,季度10-Q和8-K。请注意,在此电话会议中,我们将讨论有关我们业务和运营的历史,财务和其他统计信息。其中一些信息包含在今天的新闻稿中,此电话的录制版本将在我们的网站上提供。

今天,我们公布了截至2019年6月29日的第四季度和截止年度的业绩。结果符合我们在2019年7月24日公布的初步结果。对于2019财年第四季度,我们报告的总收入为105.6美元相比于2018财年同期的1.17亿美元。

如先前报道,我们在2019财年第四季度的收入受到中国供应商关键部件交付中断的不利影响。由于担心我们的关税和美国与墨西哥之间的贸易紧张局势,客户驱动的设计变更和客户需求的临时减少导致新计划的延迟。

进入2020财年第一季度,第四季度的中断和延迟已基本解决,我们预计收入将增加。尽管下半年收入出乎意料地下降,但全年的总收入较上年增加了4%。

2019财政年度的总收入为4.64亿美元,而2018财年为4.46亿美元.2011财年第四季度,我们的毛利率为7.9%,而2018财年同期为8%。与收入减少有关。然而,由于近期的战略投资和提高的运营效率,我们能够将工作流量从一年前减少10%以上,这使我们能够保持类似的毛利率,包括减少1100万美元的收入。

随着第一季度收入水平的反弹,我们预计毛利率将有所改善。尽管由于2019财年第四季度收入的突然下降对我们的盈利产生了不利影响,但我们仍然有利可图。我们的净收入为800,000美元或每股0.08美元,而2018财年同期的亏损为220万美元或每股亏损0.20美元。

For the full fiscal year 2019, our net loss was $8 million or $0.74 per share which includes an impairment of goodwill and intangibles of $12.5 million reported during the third quarter of fiscal 2019. This is compared to a net loss of $1.3 million or $0.12 per share for the fiscal year 2018 which was adversely impacted by an arbitration loss of $4.5 million.
Excluding the one-time write-off of goodwill and intangibles for the severance charges that occurred in Q3, the results for the full year of fiscal 2019 would have been a reported net income of $3.9 million or $0.36 per share. This compares to net income of $2.5 million or $0.23 per share for the full fiscal year 2018, when excluding the one-time arbitration loss in the fourth quarter of fiscal 2018.
Turning to the balance sheet, we continue to maintain a strong financial position. As a result of the production delays in the fourth quarter and the continued ramp of new programs, we did see a sequential increase in our inventory by approximately 5% from the third quarter of fiscal 2019. However, from a year ago, our inventory levels have declined by $9.9 million or 9%. In the first quarter, we expect to see our net inventory levels come even more in line with revenue levels. At the end of the fourth quarter, trade receivables were down $11.8 million from a year ago and DSOs were about 47 days.
Total capital expenditures in the fourth quarter in full fiscal year 2019 were approximately $2.6 million and $8.4 million respectively. We continue to invest in our production facilities, SMT equipment and sheet metal and plastic molding capabilities as well as improvements in our facilities. We plan to have approximately $10 million of capital expenditures during fiscal year 2020.
Moving into the first quarter of fiscal 2020, we expect more of our new customer programs to ramp and to move into production. The disruptions and delays experienced in the third and fourth quarters have largely been resolved and we expect revenue to increase. Taking these factors into consideration, we expect that the first quarter of fiscal 2020 will have revenue in the range of $115 million to $120 million. For the first quarter of fiscal 2020, we also anticipate earnings in the range of $0.12 to $0.17 per diluted share this assumes an effective tax rate of 20%.
In summary, while we are disappointed in the disruptions to our revenue and earnings during the second half of the year, we remain encouraged by our prospects for future growth. The overall financial health of the company is strong and we believe that we are well positioned to win new EMS programs and to continue to profitably expand our business over the longer term.
That's it for me. Craig?

在2019财政年度,我们的净亏损为800万美元或每股0.74美元,其中包括2019财年第三季度报告的商誉和无形资产减值1250万美元。相比之下,净损失为130万美元或每股0.12美元。 2018财年的份额受到仲裁损失450万美元的不利影响。

不包括第三季度发生的遣散费一次性注销商誉和无形资产,2019财年全年的业绩报告显示为净收入390万美元或每股0.36美元。相比之下,2018财政年度的净收入为250万美元或每股0.23美元,而不包括2018财年第四季度的一次性仲裁损失。

谈到资产负债表,我们继续保持强劲的财务状况。由于第四季度的生产延迟以及新计划的持续增加,我们确实看到我们的库存从2019财年第三季度开始连续增长约5%。但是,从一年前开始,我们的库存水平减少了990万美元或9%。在第一季度,我们预计我们的净库存水平将更加符合收入水平。截至第四季度末,贸易应收账款较一年前减少了1,180万美元,DSO约为47天。

2019财政年度第四季度的总资本支出分别约为260万美元和840万美元。我们继续投资于我们的生产设施,SMT设备和钣金及塑料成型能力以及我们的设施改进。我们计划在2020财政年度获得约1000万美元的资本支出。

进入2020财年第一季度,我们预计更多的新客户计划将进入并投入生产。第三季度和第四季度出现的中断和延误已基本解决,我们预计收入将增加。考虑到这些因素,我们预计2020财年第一季度的收入将在1.15亿美元至1.2亿美元之间。对于2020财年第一季度,我们还预计每股摊薄收益在0.12美元至0.17美元之间,假设有效税率为20%。

总而言之,虽然我们对下半年收入和盈利的中断感到失望,但我们对未来增长的前景感到鼓舞。公司的整体财务状况良好,我们相信我们有能力赢得新的EMS计划,并在长期内继续有利地扩展我们的业务。

这对我来说。克雷格?

克雷格盖茨

Thanks, Brett. Well, we got off to a great start in the first half of fiscal 2019 growing revenue at 13.4% year-over-year; the second half of the year was very challenging. We faced unanticipated disruptions and deliveries of critical components from China. Delays in the ramp of a new program due to customer design changes and temporary reductions in customer demand due to industry-wide concerns over tariffs and trade tensions.
Nevertheless, we see these issues largely resolved and we enter fiscal year 2020 with improved expectations. While concerns about a trade war with Mexico have abated, the evolving tariff situation with China continues to have mixed ramifications for Key Tronic. On one hand, the tariffs are causing uncertainty and sudden reactions across EMS market including our own customers.
Additionally, tariffs further complicate the supply chain particularly for China suppliers importing product back into the United States. On the other hand, many of our current customers are experiencing a seamless transition of their business out of our China facilities to our Mexico, Vietnam or domestic U.S. sites facilitated by our centralized command and control. This drastically reduces the risk and time associated with a transfer to our North American sites and thus allows some leeway to respond to the rapidly changing tariff landscape.
Furthermore, we believe the tariffs on production in China have made our Mexico based and Vietnamese production more appealing to potential new customers. Also our North American sites have become extremely competitive for U.S. bound products subject to the new tariffs. This has resulted in increased interest and request for quotes from prospective customers.
On balance, we’re increasingly well positioned for the returning tide of North American based customers as they appropriately analyze the total cost for overseas production pushing production into both Mexico and the U.S. In the face of these challenges, we saw many Tier-2 EMS competitors shrink significantly last year. And yet, even with our disappointing second half, we grew modestly for the year.
Moreover, large Tier-1 EMS players are shedding small accounts which they view as under $20 million revenue per year and we've begun to see an increase in quoting interest for many of these accounts. While our marketplace remains very competitive, we continue to win significant new business both from EMS competitors and existing customers. During the past year, our strategic additions of new salespeople, our intensified focus on aerospace and military programs and more reporting activity in general resulted in over 20 new customers and over $60 million revenue in our 2020 fiscal plan.
We want a wide range of new programs involving smart security, architectural LED lighting, power metering, smart grid and wireless power solutions, emergency medical equipment, paper dispensing products, industrial cleaning equipment, express delivery services, industrial monitoring systems, industrial motion control products and fire protection systems. Our broader and more diversified customer base lowers the potential future impact of the slowdown by any one customer.

谢谢,布雷特。那么,我们在2019财年上半年开始了一个良好的开端,收入同比增长13.4%;今年下半年非常具有挑战性。我们面临来自中国的意外中断和关键组件的交付。由于行业对关税和贸易紧张的担忧导致客户设计变更和客户需求暂时减少,导致新计划延期。

尽管如此,我们认为这些问题在很大程度上得到了解决,我们进入了2020财虽然对与墨西哥的贸易战的担忧有所缓解,但与中国不断变化的关税形势继续对Key Tronic产生混合影响。一方面,关税导致EMS市场(包括我们自己的客户)的不确定性和突然反应。

此外,关税进一步使供应链复杂化,尤其是中国供应商将产品重新引入美国。另一方面,我们当前的许多客户正在经历从我们的中国工厂到我们的墨西哥,越南或美国国内网站的无缝过渡,这是由我们的集中指挥和控制所促成的。这大大降低了转移到我们北美地区的风险和时间,从而可以为快速变化的关税环境做出回应。

此外,我们认为中国的生产关税使我们的墨西哥和越南生产对潜在的新客户更具吸引力。此外,我们的北美网站对于受新关税限制的美国约束产品而言极具竞争力。这导致了对潜在客户的兴趣和要求的增加。

总而言之,我们对北美客户的回归趋势越来越有利,因为他们恰当地分析了海外生产的总成本,将生产推向墨西哥和美国。面对这些挑战,我们看到了许多二级EMS竞争对手去年大幅萎缩。然而,即使我们令人失望的下半年,我们今年也适度增长。

此外,大型一级EMS运营商正在减少他们认为每年收入低于2000万美元的小账户,我们开始看到其中许多账户的报价增加。虽然我们的市场仍然具有竞争力,但我们继续赢得EMS竞争对手和现有客户的重要新业务。在过去一年中,我们对新销售人员的战略性增加,我们对航空航天和军事计划的关注以及更多的报告活动总体上导致了超过20个新客户和2020年财政计划中超过6000万美元的收入。

我们需要广泛的新计划,包括智能安全,建筑LED照明,电能计量,智能电网和无线电源解决方案,紧急医疗设备,纸张配药产品,工业清洁设备,快递服务,工业监控系统,工业运动控制产品和消防系统。我们更广泛,更多元化的客户群降低了任何一个客户放缓的潜在未来影响。

While we are carefully managing our expenses, we have been preparing for growth in coming periods. During fiscal 2019, we made investments in our facilities, SMT, sheet metal and plastic molding capabilities in Mexico and U.S. We also deployed innovative new manufacturing equipment in each of our facilities which has improved efficiencies and has made our production less labor-intensive. The result of this effort is decreased manufacturing and operating expenses of approximately $3 million annually.
We also added more contiguous space in the U.S. and production equipment for growth. With respect to integrated electronics and sheet metal centric programs, we see very strong growth and few real competitors of our size in North America.
Moving into the first quarter, we have commenced production in our new 86,000 square foot manufacturing facility in Vietnam to augment our Asian footprint and reduce production costs as well as provide an additional hedge against uncertainty and in lingering our future trade war with China. Our steady pipeline of new business opportunities continues to be boosted by our unmatched level of vertical integration, our multi country footprint and the excellence of our manufacturing sites in comparison to other EMS competitors of our size.
As OEMs face an increasingly uncertain geopolitical landscape, we're uniquely equipped to offer risk mitigation with our vertical integration and manufacturing facilities located in China, Mexico, Vietnam and the States. While industrial supply chain shortages and uncertainties about tariffs continue to be a factor, we expect revenue growth in the first quarter. We're optimistic about our opportunities for growth in fiscal 2020 and beyond.
In closing, I want to take this opportunity to express my gratitude to our employees for their dedication and hard work during this past year to our valued customers who continue to honor us with their trust and to our shareholders for your continuing support.
This concludes the formal portion of our presentation. Brett and I will now be pleased to answer your questions.

虽然我们正在认真管理我们的开支,但我们一直在为未来的增长做好准备。在2019财年,我们在墨西哥和美国投资了我们的设施,SMT,钣金和塑料成型能力。我们还在每个工厂部署了创新的新制造设备,提高了效率,使我们的生产减少了劳动密集型。这项工作的结果是每年减少约300万美元的制造和运营费用。

我们还在美国增加了更多的连续空间和增长的生产设备。在集成电子和钣金中心项目方面,我们看到非常强劲的增长,而且我们在北美的实际竞争对手很少。

进入第一季度后,我们已在越南新建的86,000平方英尺的制造工厂开始生产,以增加我们的亚洲足迹并降低生产成本,并提供额外的对冲措施以应对不确定性并延续未来与中国的贸易战。与我们规模的其他EMS竞争对手相比,我们无与伦比的垂直整合水平,多国覆盖范围以及卓越的生产基地,继续推动我们稳定的新商机。

由于OEM面临着越来越不确定的地缘政治格局,我们具备独特的能力,可以通过我们在中国,墨西哥,越南和美国的垂直整合和制造设施来降低风险。虽然工业供应链短缺和关税的不确定性仍然是一个因素,但我们预计第一季度的收入增长。我们对2020财年及以后的增长机会持乐观态度。

最后,我想借此机会向我们的员工表示感谢,感谢他们在过去一年中为我们尊重的客户所做的贡献和辛勤工作,他们继续以我们的信任和我们的股东为您提供持续的支持。

这结束了我们演示文稿的正式部分。布雷特和我现在很乐意回答你的问题。

问答环节

Thank you. [Operator Instructions] The first question will come from Bill Dezellem with Tieton Capital. Please go ahead with your question sir.

谢谢。 [操作员说明]第一个问题将来自Bill Dezellem和Tieton Capital。 先生,请继续问你的问题。

William Dezellem

Thank you. It's Tieton Capital and Craig would you please repeat one thing you said in your opening remarks. I heard something about a certain number of new customers I think and a certain level of new revenues are in your fiscal 2020 plan. Would you please repeat that?

谢谢。 这是Tieton Capital和Craig,请你在开场白中重复一句话。 我听说过我认为有一定数量的新客户,并且您的2020财年计划中有一定程度的新收入。 请问你可以再说一遍吗?

克雷格盖茨

Yes. It's actually more than 20 new customers and more than $60 million in new revenue in the 2020 fiscal plan.

是。 在2020财年计划中,实际上有超过20个新客户和超过6000万美元的新收入。

William Dezellem

And then, let me start with the five new wins that you announced here this quarter. First of all, what's the dollar amount of each of those please, but then just as importantly would you talk about each of those wins and what it is that you're doing and as much detail as you can and how you won those pieces of business please?

然后,让我先谈谈你在本季度宣布的五项新胜利。 首先,每个人的美元金额是多少,但同样重要的是你会谈论每一个胜利,你正在做什么,尽可能详细,以及你如何赢得这些 生意好吗?

克雷格盖茨

First, the amount none of them is under 5 and none of them are over 20. So they seem to all be kind of clustering around that kind of sweet spot for Key Tronic. We want them in various ways. Let's see, one of them is from an existing customer and -

首先,它们的数量都不到5,而且它们都没有超过20个。所以它们似乎都集中在Key Tronic的那种最佳位置。 我们以各种方式想要它们。 让我们看看,其中一个来自现有客户 -

William Dezellem

And just for ease of following along, can we start with as you have listed in the press release with the smart security?

而且为了便于跟进,我们可以从您在新闻稿中列出的智能安全性开始吗?

克雷格盖茨

Yes. So that is a new customer that is exiting their China facility and moving to Juarez. Second one is, architectural LED lighting that is a current customer who just completed an acquisition and has decided that we will be the people in the building, actually redesigning that product for them and building it, the redesign has already started. Third one, power meters and smart grid and also the next one wireless power solutions, both of those are at the smaller end of the scale. Both of those are new customers who came through our direct sales team.

是。 因此,这是一个新的客户,正在退出他们的中国工厂并搬到华雷斯。 第二个是,建筑LED照明是刚刚完成收购的当前客户,并且已经决定我们将成为建筑物中的人,实际上为他们重新设计该产品并进行构建,重新设计已经开始。 第三,功率计和智能电网以及下一个无线电源解决方案,这两者都处于规模较小的一端。 这两个都是通过我们的直销团队来的新客户。

William Dezellem

And how about timing of these converting to the plant and starting revenue? Can you walk through each of those?

那些转换到工厂和开始收入的时机如何? 你能走遍每一个吗?

克雷格盖茨

It's again a mixed bag. The smart security product is actually going quite nicely and they would like to be fully transferred before Christmas and that's one of the larger the programs. The second one, the architectural LED lighting is as I said, going to be redesigned by us. So I'd say that's probably going to begin ramping in the third quarter and the last two are both basically PCBs in a box and should go kind of a mellow pace again also sometime in a second, beginning a third fiscal not calendar quarter.

这又是一个混合包。 智能安全产品实际上非常好,他们希望在圣诞节之前完全转移,这是程序中较大的一个。 第二个,正如我所说,建筑LED照明将由我们重新设计。 所以我说这可能会在第三季度开始增加,最后两个基本上都是PCB,并且应该在一秒钟的某个时间再次变得柔和,开始第三个财政而不是日历季度。

William Dezellem

And then, relative to the Vietnam facility, you said you are producing there. It's rare that a plant starts up as smoothly as this one has seemed to -- and I won't ask my next question relative to that. Let's talk about how are your prospective customers now interacting with you that you actually have a live working facility that you can take them to and they can see, feel and touch?

然后,相对于越南设施,你说你在那里生产。 很少有植物像这样的植物一样平稳地开始 - 我不会问我的下一个问题。 让我们来谈谈您的潜在客户现在如何与您互动,您实际上有一个可以带他们去的实时工作设施,他们可以看到,感受和触摸?

克雷格盖茨

Yes. Everybody is, I shouldn't say that not everybody, but we've got a number of existing customers who have their business split between us and people who are China centric, who are either in the act of touring or shortly will be touring Vietnam. We have a number of new customers that I think having Vietnam as an option played a big part in winning them, even though they're going to end up in Juarez. The fact that we can quote the three, actually four regions with just the push of a button now is very powerful during the sales process.

是。 每个人都是,我不应该说不是每个人,但我们有一些现有的客户,他们的业务分裂在我们和以中国为中心的人之间,他们要么正在巡回演出,要么不久将在越南巡回演出。 我们有一些新客户,我认为越南作为一个选项在赢得他们方面发挥了重要作用,即使他们最终将在华雷斯。 事实上,我们只需按一下按钮即可引用三个区域,实际上是四个区域,现在在销售过程中非常强大。

William Dezellem

And have you had any new customers that you have won that are intending on going into Vietnam?

您是否有任何有意进入越南的新客户?

克雷格盖茨

Yes, but not immediately.

是的,但不是立即的。

William Dezellem

I have another group of questions, shall I go back in queue or you want me to keep going?

我有另外一组问题,我是否应该排队等候你还是希望我继续前进?

克雷格盖茨

Go ahead and keep going.

来吧继续前进。

William Dezellem

Let's jump then to SkyBell please. Would you give us an update of what's happening with that business?

让我们跳到SkyBell吧。 您能告诉我们该业务发生的最新情况吗?

克雷格盖茨

I don't know how much I can say about that Bill, because it's not my business. As far as our side of it, demand continues to be strong and production kinks have been worked out and we think the latest supply disruption is behind us. So that's probably about all I can say about it.

我不知道我能说多少钱,因为这不是我的事。 就我们而言,需求仍然强劲,生产问题已经解决,我们认为最新的供应中断已经过去。 所以这可能就是我所能说的一切。

William Dezellem

The implication then is that the supply disruption you referenced in the press release was them?

这意味着你在新闻稿中引用的供应中断是他们吗?

克雷格盖茨

That's an implication.

这是一个含义。

William Dezellem

Fair enough. Let's shift to the question that I suspect is, just a point of ignorance here. But, can you talk about how the U.S., Mexico tariff tensions how that impacted the fourth quarter from an outsider's perspective that all happened very quickly. So talk about how that impacted your quarter please?

很公平。 让我们转向我怀疑的问题,这里只是一个无知的点。 但是,你能否谈谈美国,墨西哥关税紧张如何影响第四季度从局外人的角度来看,这一切都发生得很快。 那么请谈谈这对你的季度有何影响?

克雷格盖茨

Specifically, we had a customer who we were just about to ramp in China and they had made the decision to put us on hold and move it to Mexico. And then, when the whole Mexico thing came up, they more or less froze in the headlights and couldn't figure out what to do. So in the end that delay cost us that revenue for Q4 that's not going to be starting in Q1.

具体来说,我们有一个客户,我们正准备在中国崛起,他们已决定暂停我们并将其转移到墨西哥。 然后,当整个墨西哥的事情出现时,它们或多或少地在前灯中冻结,无法弄清楚该怎么做。 所以最终这种延迟使我们第四季度的收入不会在第一季度开始。

William Dezellem

That's helpful and then you I think you may have referenced this in your remarks, but there have been some rumors of that Plexus and maybe Flextronics are both kicking out customers that are $20 million or less in revenue. Is that what you were referring to in your opening remarks and if so, I would assume given the size of those organizations there are a lot of customers that are floating around out there looking for a new contract manufacturer?

这是有帮助的,然后你我认为你可能在你的评论中引用了这一点,但有传言说Plexus和伟创力都在推出收入达2000万美元或更少的客户。 这是你在开场白中提到的那个,如果是这样的话,我会假设考虑到这些组织的规模,有很多客户在那里寻找新的合同制造商吗?

克雷格盖茨

Well, I'm certainly not in contact with the management at either of those companies. We have been told by a number of prospective customers that that's a situation they faced with those two manufacturers. Again, I can't confirm or deny it. But certainly, if that is what's happening there are a lot of prospects for us in that class. This seems to be somewhat cyclical phenomena.
We went through this probably, I can't remember how many years ago and picked up a number of nice accounts as a result. And then, things swung back the other way and now the pendulum seems to be going back to the big guys who are only interested in big business. So I'm not sure, but we hadn't heard this for years and now suddenly we picked up on it in a couple of different places.

好吧,我当然没有与这两家公司的管理层联系过。 许多潜在客户告诉我们,这是他们面对这两家制造商的情况。 再说一次,我无法证实或否认它。 但当然,如果这就是正在发生的事情,那么我们在该课程中有很多前景。 这似乎是一些有点周期性的现象。

我们可能经历过这种情况,我记不清多少年前因此获得了一些不错的账户。 然后,事情又转向另一个方向,现在钟摆似乎又回到了那些只对大企业感兴趣的大家伙。 所以我不确定,但多年来我们都没有听过这个,现在我们突然在几个不同的地方接听了它。

William Dezellem

So this has happened in the past and you did win business from it in the past?

所以过去曾经发生这种情况,你过去确实从中赢得了生意吗?

克雷格盖茨

Yes.

是。

William Dezellem

And presumably, you're a much better position to quote and win business today than you were several years ago?

据推测,与几年前相比,你今天的报价和赢得业务要好得多?

克雷格盖茨

Yes.

是。

William Dezellem

Let me jump to another question here. And maybe it all ties in to everything that you've been saying, but we went back and looked at just the number of new program wins that you've referenced in your press releases and tallied that up on the trailing four quarters. So at the end of fiscal 2017, you had 9 new wins at fiscal year. Fiscal 2018 you had 12 new wins and then this last year fiscal 2019, you had 15 new wins. So that number is just steadily working upward. I would like to think that is indicating momentum in the business. Would you concur with that or do you just consider this random chance?

让我跳到另一个问题。 也许这一切都与你所说的所有内容联系在一起,但我们回过头来看看你在新闻稿中引用的新项目获胜次数,并在过去的四个季度中对其进行了统计。 因此,在2017财年末,您在财政年度获得了9次新的胜利。 2018财年你有12个新的胜利,然后是去年的2019财年,你有15个新的胜利。 所以这个数字正稳步上升。 我想这表明业务势头良好。 你会同意这一点,还是只考虑这个随机机会?

克雷格盖茨

That's probably one of the few times you and I agree on the weight of such statistics. Those are very, very good numbers and indicate a sea change in our ability to win new business. It's not random.

这可能是你和我同意这些统计数据权重的几次之一。 这些都是非常非常好的数字,表明我们赢得新业务的能力发生了翻天覆地的变化。 这不是随机的。

William Dezellem

Excellent, thank you. And then, one final question that I suspected is also not random and Brett you mentioned, I believe a couple of the components, but I'm going to ask you to go back and redress it. Your gross margin held virtually flat in the fourth quarter versus the fourth quarter of last year despite the revenue pressure and it was actually up versus the first quarter even when adjusting for the restructuring charge that float through the cost of goods and I think that was on $2.5 million less revenue and still margin was up. Would you talk to this please and congratulations on being able to pull that off.

非常好,谢谢。 然后,我怀疑的最后一个问题也不是随机的,而你提到的Brett,我相信其中的几个组件,但我会要求你回去纠正它。 尽管存在收入压力,但第四季度的毛利率与去年第四季度相比几乎持平,即使在调整重新调整费用的情况下实际上与第一季度相比也是如此,我认为 收入减少250万美元,利润率仍在上升。 请你谈谈这个,并祝贺能够解决这个问题。

Brett Larsen

Well, as we've mentioned before Bill is that, we went through a real deep look at our workforce, looked at also the equipment sets that we were using and we found some opportunities to really drop our cost. As reflected in the actual gross margin percentage that you stated, we did. We were able to reduce our workforce year-over-year by over 10% which allowed us to maintain that similar gross margin as we did last year on $11 million more in revenue.

好吧,正如我们在比尔之前提到的那样,我们对我们的员工进行了真正的深入研究,同时查看了我们正在使用的设备组合,我们发现了一些真正降低成本的机会。 正如您所说的实际毛利率百分比所示,我们做到了。 我们能够将员工人数同比减少10%以上,这使我们能够保持与去年相比增加1100万美元收入的类似毛利率。

William Dezellem

Congratulations and thank you both.

恭喜并感谢你们俩。

Brett Larsen

You bet.

你打赌。

会议主持员

The next question will come from [Indiscernible] Asset Management. Please go ahead with your question.

下一个问题将来自[Indiscernible]资产管理。 请继续你的问题。

身份不明的分析师

Yes, good afternoon Craig and Brett. Did you mention what the backlog is at June 30 or the present backlog?

是的,下午好,克雷格和布雷特。 你有没有提到6月30日的积压或现在的积压?

Brett Larsen

We have not disclosed that. We struggle that that backlog number really is not indicative of how strong the quarter is going to be. So much of backlog is the timing, but when we actually receive purchase orders, but we definitely do see an increase in demand hence, fairly significant increase in revenue quarter-over-quarter that we're guiding to.

我们还没有透露。 我们认为积压数字并不能说明该季度的强劲程度。 积压的大部分时间都是时间,但是当我们实际收到采购订单时,我们确实看到了需求的增加,因此我们引导的收入比上一季度有相当大的增长。

身份不明的分析师

Okay. In the Q or the previous Q, you had $151 million and that's why I was wondering what it might be. What is in it?

好的。 在Q或之前的Q中,你有1.51亿美元,这就是我想知道它可能是什么的原因。 里边啥啊?

Brett Larsen

Yes. We do disclose that in the 10-Q. That is correct.

是。 我们确实在10-Q中披露了这一点。 那是正确的。

身份不明的分析师

What capacity are you in Vietnam and Mexico and all your other locations and what percentage are you able to increase sales from these different locations?

您在越南和墨西哥以及您所有其他地方的容量是多少?您能够在这些不同地点增加销售额的百分比是多少?

克雷格盖茨

That's a pretty long-winded answer. I'm sorry you asked it because here you go. Vietnam with the current customer who's going to be the anchor customer for that site is going to be close to 85% loaded with the equipment there right now. We have the rights to another building next door. So we have the capacity to expand there without a lot of costs, but as installed this one customer is going to do a firm nice job of making this thing close to full.
In Juarez to answer your question, you need to get your head around the fact that there's a million square feet down there and there's really quite a few different factories on campus. So right now, the metal shop which does all the metal fabrication and powder coating and assembly, the metal shop is full. There's been a really strong group of people wanting to come out of China into Mexico and our metals area is one of the few around for programs of the size that we're interested and they are interested in us. So that shop is almost completely full. The SMT shop is about 60% full. Plastics are about 55% full. And assembly is about 80% full. So those are the different factories or areas that exist down in Juarez.

这是一个非常冗长的答案。对不起你问了,因为你走了。越南目前的客户将成为该网站的主要客户,目前该设备将接近85%。我们有权到隔壁的另一栋楼。因此,我们有能力在没有大量成本的情况下扩展到那里,但是如果安装了这一个客户将会做得非常好,使这件事情接近完整。

在Juarez回答你的问题时,你需要了解一下那里有一百万平方英尺的事实,校园里真的有不同的工厂。所以现在,金属车间做了所有的金属加工和粉末涂装和装配,金属车间已满。有一群非常强大的人想要从中国走进墨西哥,我们的金属领域是我们感兴趣的大型项目之一,他们对我们很感兴趣。所以商店几乎完全满了。 SMT商店约满60%。塑料大约满55%。装配大约80%。因此,这些是华雷斯所存在的不同工厂或地区。

身份不明的分析师

Yes, I'm sorry. Yes.

是的,对不起。 是。

克雷格盖茨

I told you, it would be a long one. Arkansas is probably equipment-wise 50% full but people wise it's probably 85% full. [Indiscernible] has got almost a 100% capacity expansion available in space because that's an empty building that we get from the state almost for free. But their equipment is running about 75% full and Minnesota is right now bursting at the seams. Very shortly they will move into their added on area and then there will be about 70% full. And then, I think that's it, isn't it. That's it.

我告诉过你,这将是一个漫长的过程。 阿肯色州可能装备50%满员,但人们明智的可能是85%满员。 [Indiscernible]在太空中的容量扩展几乎达到了100%,因为这是一座空地,我们几乎可以免费从该州获得。 但是他们的设备运行大约75%,明尼苏达州现在正在爆裂。 很快,他们将进入他们增加的区域,然后将有大约70%的满。 然后,我认为就是这样,不是吗。 而已。

身份不明的分析师

Well that sounds good. Now, the 85% customer they are present customer and are you able to sort of give a generalization of what 85% would produce in sales or anything or some kind of range or something?

那听起来不错。 现在,85%的客户是他们现在的客户,您是否能够对85%的销售额或任何类型或某种范围内的产品进行概括?

克雷格盖茨

They are a current customer. They are right now almost completely in our Chinese facility and they'll be moving almost completely out of the Chinese facility into the Vietnamese facility and I don't want to give you a revenue number because they might not like that.

他们是现在的客户。 他们现在几乎完全在我们的中国工厂,他们将几乎完全从中国工厂搬到越南工厂,我不想给你一个收入号码,因为他们可能不喜欢这样。

身份不明的分析师

I understand that. That sounds very reasonable and so you're in a lot better shape now then six months ago. You have visibility. You have the ability to improve your sales and profits. And have we given any thought to the potential of the 10% additional tariff that's being talked about for September? Is there any more people in China that this would produce more people that might come out of China to some of your other business as that sort of given any requests for quotes or anything in that regard?

我明白那个。 这听起来非常合理,所以现在六个月前你的状态好多了。 你有可见性。 您有能力提高销售额和利润。 我们是否考虑过9月份谈到的10%额外关税的可能性? 在中国是否还有更多的人会产生更多可能来自中国的人到你的其他业务,因为这种情况会引起任何报价或任何相关的要求?

克雷格盖茨

Sure. I've kind of come to view these threats of tariffs as people talked about they've learned that they're going to die. There's kind of disbelief then there's bargaining and then there's acceptance and then there's sadness or whatever those are that order of events are we've seen people go through those stages with the first round of tariffs. And right now in the second round, I'd say people are in the acceptance and beginning to plan for them actually happening and so it is creating more quotes. It will create more business coming to us. So it's for Key Tronic probably net, net. It's a good thing even though it's certainly an awful thing for our guys in China.

当然。 当人们谈到他们已经知道他们将会死亡时,我有点看到这些关税的威胁。 有一种不相信然后是讨价还价然后有接受,然后有悲伤或者那些事件的顺序是我们看到人们通过第一轮关税经历这些阶段。 而现在在第二轮,我会说人们正在接受并开始计划他们实际发生的事情,所以它创造了更多的报价。 它将为我们带来更多业务。 所以这对于Key Tronic来说可能是net,net。 这对我们在中国的人来说无疑是件好事。

身份不明的分析师

And as far as your inventory being in an appropriate way if more business comes in, you'll increase inventory or is it structured for the more business that the inventory that you presently have?

如果您的库存以适当的方式进入,如果有更多业务进入,您将增加库存,还是构建为您目前拥有的库存更多的业务?

克雷格盖茨

The reason it's a little bit too high is because, it was a shock last quarter and a half that we didn't ship what we had planned to ship. So the parts were there. We were unable to ship them. So we would expect if the revenues stayed at the level we're at, we're projecting to be at this quarter that the inventory would go down some and then as we add new business and new programs the inventory is going to go up ratio metrically with that.

它有点太高的原因是因为,上一季度的一半,我们没有按照我们计划发货的方式发货。 部件就在那里。 我们无法发货。 因此我们预计如果收入保持在我们所处的水平,我们预计在本季度库存会下降一些然后随着我们添加新业务和新计划,库存将会增加比例 与此相关的。

身份不明的分析师

That's good and do we see as far as us getting parts from some other place, we have everything in plan to produce whatever we think we're going to get going forward without any problems?

这很好,我们看到我们从其他地方获得零件,我们有计划生产我们认为我们将继续前进而没有任何问题的一切吗?

克雷格盖茨

What I would like to say that's a 100% sure thing but certainly with what's going on today not 100% sure. As far as I see right now, there's nothing that is terrifying right now. But, I certainly wouldn't say we're sleeping easy with what's going on between Trump and his fellow leaders.

我想说的是100%肯定的事情,但肯定会对今天发生的事情不是100%肯定。 就我现在看来,现在没什么可怕的。 但是,我当然不会说特朗普和他的领导人之间正在发生什么事情。

身份不明的分析师

I just want to give you a piece of history. It's my recollection is when Key Tronic first started, they were dealing with just telephones and it's a whole new world because I remember, it was a long time ago when I was involved, but no more telephones.

我只是想给你一段历史。 这是我的回忆,当Key Tronic刚开始时,他们只处理电话,这是一个全新的世界,因为我记得,很久以前我参与其中,但没有更多的电话。

克雷格盖茨

Well, when I started in 94, a keyboard was selling for 112 bucks and by 98 it was 10 bucks.

好吧,当我在94年开始时,一个键盘以112美元的价格卖出,到98时则是10美元。

身份不明的分析师

Yes. This is progress I guess. Alright, thank you very much. Hope you achieve your goals. Thank you.

是。 我猜这是进步。 好的,非常感谢你。 希望你实现自己的目标。 谢谢。

克雷格盖茨

Bye.

再见。

会议主持员

Thank you. The next question will come from Drew Thelen with Crimson Advisors. Please go ahead with your question.

回到你将要在某些SG&A中做出的削减。 所以我想,这有几个快速的部分。 我的意思是这听起来像是你的收购评估的一部分随着时间的推移,并可能有太多的高端人员。 所以我想,我很好奇这部分的两个部分。 一,你怎么认为这会改变你的收购方式,你一直在努力保留一些资深人士,当你经历这些转变时,如果你需要很多东西,你可能会对你作为收购者的吸引力做些什么呢? 高级人员,你买不同的公司?...

画了Thelen

Thank you very much. On the last call, Brett had mentioned that we're about a year out from getting a 10% type of ROE. We're 9, I guess we’re now nine months out from that point, are we still on target to do something like a 10% ROE by the end of the next fiscal year?

非常感谢你。 在最后一次电话会议上,Brett提到我们距离获得10%的净资产收益率还有一年的时间。 我们9岁,我想我们现在距离那个月还有9个月,我们是否仍有目标在下一财年结束时做10%ROE?

Brett Larsen

Yes.

是。

画了Thelen

Great that's all I got. Thank you so much.

太棒了,这就是我得到的一切。 非常感谢。

克雷格盖茨

Thank you.

谢谢。

会议主持员

Thank you for the question. The next question will come from Sheldon Grodsky with Grodsky Associates Inc. Please go ahead with your question.

感谢你的提问。 接下来的问题将来自Sheldon Grodsky和Grodsky Associates Inc.。请继续提出您的问题。

Sheldon Grodsky

Good afternoon everybody and that was a very nice simple answer of the 10% ROE for this year. My question is more a delayed response. I don't recall if we ever discussed it in the last quarter, but what was the write-off of goodwill? Was that Ayrshire and however you pronounce it and why do you have to write it off?

大家下午好,这是今年10%净资产收益率的一个非常好的简单答案。 我的问题更多是延迟回应。 我不记得我们是否曾在上一季度进行过讨论,但是商誉的注销是什么? 那是艾尔郡,但你发音了,为什么要把它写下来?

Brett Larsen

We mentioned a bit of this in last quarter’s call that really was related to the calculated share price of Key Tronic or basically our market cap was considerably less than our book value. So through Generally Accepted Accounting Principles, you are forced then to value your company and figure out whether there would have been impairment to that intangible. At that point in time, we went through that calculation and found that it was a close call and went ahead and decided to write-off the intangibles and it was largely related to the acquisition of Ayrshire. Now the results and the actual profitability of those entities that were acquired during the Ayrshire acquisition are faring well. During the third quarter we did go ahead and write-off those intangibles.

我们在上个季度的电话会议中提到了一点,这与Key Tronic的计算股价有关,或者基本上我们的市值大大低于我们的账面价值。 因此,通过公认会计原则,您不得不重视您的公司,并弄清楚该无形资产是否会受到损害。 在那个时间点,我们经历了这个计算,发现它是一个紧密的电话并继续并决定注销无形资产,这主要与收购艾尔郡有关。 现在,在收购艾尔郡期间获得的那些实体的结果和实际盈利能力都很好。 在第三季度,我们确实开始注销那些无形资产。

Sheldon Grodsky

So this is specifically required when you're selling it less than book value?

因此,当您出售低于账面价值时,这是特别需要的吗?

Brett Larsen

That is correct.

那是正确的。

会议主持员

Thank you for the question. The next question will come from George Melas with MKH Management. Please go ahead with your question.

感谢你的提问。 接下来的问题将来自George Melas和MKH Management。 请继续你的问题。

乔治梅拉斯

I have a question and I'm just trying to understand how to think about you say that customer is added in fiscal 2019. Can you guys hear me?

我有一个问题,我只是想了解如何考虑你说在2019财年增加了客户。你们能听见我吗?

克雷格盖茨

Yes.

是。

乔治梅拉斯

Customers are added in fiscal 2019 should sort of contributing roughly $60 million to the revenue plan for this coming year, for fiscal 2020. There's roughly 15 of them. How do we think about that? It seems like $4 million per customer is a small number. I understand some of them will take some time to ramp, but can you help me understand sort of how to think about that?

2019财年增加的客户应该为2020财年的收入计划贡献大约6000万美元。其中大约有15个。 我们怎么想这个? 似乎每个客户400万美元是一个小数字。 我知道他们中的一些人会花一些时间来提升,但是你能帮助我理解如何思考这个问题吗?

克雷格盖茨

Yes. You've kind of answered your own question there George is, we said in the fiscal year so that's between now and the end of June. We have to get all these customers in the factory up and running and most of them will not be anywhere near their eventual mature run rate. So that 60 million if you --

是。 你有点回答乔治的问题,我们在财政年度说这是从现在到六月底。 我们必须让所有这些客户在工厂中运行并且大部分客户都不会接近最终的成熟运行率。 所以,如果你 - 那6000万 -

乔治梅拉斯

So the logical follow-up is at run rate, how much you accept those customers to be?

所以合理的跟进是在运行速度,您接受这些客户的程度是多少?

克雷格盖茨

Yes. That's a logical question. We've had quite a number of discussions with this, how do we wait when a customer tells us what the business is worth and when it's going to happen. But my best estimate of that 60 at full maturity is probably about a 110 million.

是。 这是一个合乎逻辑的问题。 我们已经与此进行了大量讨论,当客户告诉我们业务的价值以及何时会发生时,我们如何等待。 但我对60岁时完全成熟的最佳估计可能是大约1.1亿。

乔治梅拉斯

So if you have the discussion there because you have right now roughly 460 million in this fiscal year. You have coming in fiscal 2020, you have some fiscal 8 million customers that continue to ramp, you have the fiscal 2019. So if we think of customers that are fully ramped and I'm creating maybe somewhat artificial categories but I guess it's helpful conceptually. But if you think of customers that are fully ramp and those who are also ramping that probably are 18 and 19.
How do we think about that because if you add that much new customers, it seems like it would drive meaningful growth unless there is a meaningful attrition which I don't think is the case. I mean, I'm sure there is some regular attrition but you guys are doing a good job then you don't have abnormal attrition. So if you take the customers that are fully ramped what kind of degradation in revenue do you expect in fiscal 2020?
I guess if you do your budget, if you look at customers on a fully ramp, those are ramping from 18, those are ramping from 19, what are those different buckets?

所以,如果你在那里进行讨论,因为你现在在本财政年度大约有4.6亿。你已经进入2020财年,你有一些财政800万的客户继续增加,你有2019财政年度。所以,如果我们想到完全猖獗的客户,我可能会创建一些人工类别,但我想这在概念上是有帮助的。但是,如果你想到那些完全猖獗的客户以及那些可能正在崛起的客户,那可能是18和19。

我们如何考虑这一点,因为如果你增加那么多新客户,看起来它会推动有意义的增长,除非有一个我认为不是这样的有意义的消耗。我的意思是,我确信有一些经常性的消耗,但你们做得很好,然后你就没有异常的消耗。那么,如果你把完全猖​​獗的客户带到2020财年会带来什么样的收入下降?

我想如果你的预算有所增加,如果你看到完全斜坡上的客户,那些是从18开始的,那些是从19开始的,那些不同的桶是什么?

克雷格盖茨

We've done a lot of work to try to figure out how to predict, how much leakage we're going to have out of the bottom of the bucket. Easy ways that's alright, you haven't been thinking about it as much as we have. We've gone back and looked at history, eight years worth of history and what we see is not really, a statistically valid rate of leakage. What we see instead are individual events that appear to be not really all that predictable or something that we could have mitigated.
So for example, one of our largest customers was almost bankrupt and got bought by the world's largest competitor. That was a major hit to the company and you probably know which one I'm talking about. Another one of our customers was growing rapidly and we had done quite a bit of work to help them grow and they were bought by Amazon and we were on the street within weeks. It just goes like that where you look at the things that have really affected us and it's not like a customer got mad or was wooed away by another EMS competitor. It's all these kind of strange one-off occurrences that nevertheless continue to happen at a substantial rate. So you can't just take the new business and add it on to what we have.
So if you look at today's bucket of customers there are a couple of big ones in there whose products are running at really nice high rates and the question is how long before their markets get saturated and even though we are working on new designs with those customers to get them into new markets, will those new designs be raging the successes like this current design is. So it's really impossible for me to tell you that we've gone back and looked over eight years and the average rate per year is this much loss and this enter deviation on that rate is why and so therefore you could expect between an upper limit and a lower limit of this so you could plan on $40 million of leakage out the bottom of the bucket. I can't do that for you. I'm sorry. I wish I could.

我们已经做了很多工作来试图弄清楚如何预测,我们将从底部挖出多少泄漏。简单的方法,你没有像我们一样考虑它。我们回过头来看历史,八年的历史,我们看到的并不是真的,统计上有效的泄漏率。我们所看到的是个别事件,这些事件看起来并非真正可预测或我们可以减轻的事情。

例如,我们最大的客户之一几乎破产,并被全球最大的竞争对手收购。这对公司来说是一个重大打击,你可能知道我在谈论哪一个。我们的另一个客户发展迅速,我们做了很多工作来帮助他们成长,他们被亚马逊收购,我们在几周内就在街上。它就像你看到那些真正影响我们的东西,而不是客户生气或被另一个EMS竞争对手所吸引。所有这些奇怪的一次性事件仍然以相当大的速度继续发生。因此,您不能仅仅接受新业务并将其添加到我们拥有的业务中。

因此,如果你看看今天的大量客户,那里有几个大产品,其产品的运行速度非常高,而且问题是他们的市场需要多长时间才能达到饱和状态,即使我们正在与这些客户一起开展新设计为了让他们进入新市场,这些新设计是否会像目前的设计一样肆虐。因此,我真的不可能告诉你,我们已经回过头来看了八年,而且每年的平均费率是这么大的损失而且这个输入偏差就是为什么因此你可以预期在一个上限和这个的下限是你可以计划从桶底泄漏4000万美元。我不能为你做那件事。对不起。我希望我能。

乔治梅拉斯

Appreciate the explanation. The issues that you have with the two customers in the market order and those guys have had in the two quarters and those two big buckets of issues pretty much behind you. I think in the March quarter there were two customers, an event [Indiscernible] reduce production the other one was sort of add build inventory previously as they were shifting from China to Mexico. Are these issues kind of behind you?

感谢解释。 你和市场订单中的两个客户以及那些人在两个季度中遇到的问题以及那两大问题几乎落后于你。 我认为在3月季度有两个客户,一个事件[Indiscernible]减少生产,另一个是在他们从中国转移到墨西哥之前增加建筑库存。 这些问题有点落伍吗?

克雷格盖茨

The excess inventory has been burnt up in both of those customers. One of them is right now in a pricing battle with a couple, it’s big sales points. So these tariffs are having different effects on different people. So we are still kind of waiting around to see who is going to win that steer down but the inventory has been burnt up. But right now the forecast only show an improvement compared to what we did in the last quarter. They're not up to where we hoped they would be. And the other one is actually being limited by us right now at our ability to make metal parts to respond to all the demand we have in our metal shop.

多余的库存已经在这两个客户中烧毁。 其中一个正在与一对夫妇进行定价战,这是一个很大的销售点。 所以这些关税对不同的人有不同的影响。 因此,我们仍然有点等待,看看谁将赢得罢工,但库存已被烧毁。 但目前预测仅显示与上一季度相比有所改善。 他们没有达到我们希望的水平。 而另一个实际上是由我们现在限制我们制造金属零件以满足我们在金属车间的所有需求的能力。

乔治梅拉斯

And then, just a question of the investment I mean, there was really an elaborate question to the capacity that you have available in the different plant. So where is most of the investment going in because it's a fairly substantial CapEx investment in fiscal 2020. Where's most of that going?

然后,就我所说的投资问题而言,对于您在不同工厂中可用的能力确实存在一个精心设计的问题。 因此,大部分投资都在哪里进行,因为它在2020财年是一项相当可观的资本支出投资。其中大部分投资都在哪里?

Brett Larsen

Well that's going to help us with our capacity constraints and sheet metal, but it's also going into fully outfitting the new Vietnam facility.

嗯,这将有助于我们的容量限制和钣金,但它也将完全装备新的越南工厂。

乔治梅拉斯

Thank you very much.

非常感谢你。

会议主持员

Thank you for the question. The next question will come from Mike Hughes with SGF Capital Management, LP. Please go ahead with your question.

感谢你的提问。 接下来的问题将来自Mike Hughes和SGF Capital Management,LP。 请继续你的问题。

迈克尔休斯

Thanks for taking my questions. First, I don't think you typically talk about your end market mix, but can you at a high level give us a mix between maybe consumer industrial comp or what other categories that you think about internally?

谢谢你回答我的问题。 首先,我认为您通常不会谈论您的终端市场组合,但您是否可以在高层次上为我们提供消费者工业组合或您认为内部其他类别的组合?

克雷格盖茨

We don't even do that. A good mix of all the above, we are definitely not concentrated in any one of those.

我们甚至不这样做。 综合以上所有,我们绝对不会集中在其中任何一个。

迈克尔休斯

If you have any you can pull it out that'd be helpful. But, my second question just what have you seen with your customers demand forecasts over the last few months? I assume you receive updates on a weekly or at least monthly basis. What's happened on that front?

如果你有任何你可以把它拉出来,这将是有帮助的。 但是,我的第二个问题是您在过去几个月中对您的客户所看到的需求预测? 我假设您每周或至少每月都会收到更新。 在那方面发生了什么?

克雷格盖茨

It's been a mixed bag. I have a hard time to even draw any conclusions from it. I'd say the best I can do for you is that we've seen the consumer kind of smooth off a little bit and drop a little bit and we've seen industrial actually increased forecast is an industrial. So we're having a hard time drawing any conclusions from that.

这是一个混合包。 我很难从中得出任何结论。 我说我能为你做的最好的事情就是我们已经看到消费者有点平稳而且有点下降而且我们已经看到工业实际上增加的预测是一个工业。 所以我们很难从中得出任何结论。

迈克尔休斯

When you look at those forecasts how do they compare the behavior now versus let's say six months or a year ago, is it softer or more choppy?

当你看这些预测时,他们如何比较现在的行为与六个月或一年前的比较,它是否更柔软或更不稳定?

克雷格盖茨

I'd say it's more choppy and there's less exuberance.

我会说它更不稳定而且不那么繁荣。

迈克尔休斯

And what percentage of your revenue at this point is generated out of the plant in China?

此时您的收入中有多少来自中国的工厂?

Brett Larsen

It’s probably 6% or 7%.

这可能是6%或7%。

迈克尔休斯

Which is consistent with the square footage there out of the total company-wide number. So what is the capacity utilization of that plant, did you run through that and did I miss it when you were through the utilization numbers?

这与公司范围内的总面积数量一致。 那么那个工厂的产能利用率是多少,你是否已经完成了这个工作?当你通过使用数据时我是否想念它?

克雷格盖茨

I missed it, good catch it's probably under 50% right now.

我错过了,很好的抓住它现在可能低于50%。

迈克尔休斯

So at what point would that facility start losing money or is it already?

那么该设施将在什么时候开始赔钱,或者已经存在?

克雷格盖茨

It's getting close to worrisome that's for sure. We've got a couple of wins that are going to go in there that are for China market that will help and we'll see what happens from there. I think a point of clarity to that people don't understand and they don't have any reason to. But, we have a very large purchasing contingent over there and is really directly linked to the manufacturing site itself because they buy a lot of the parts for the U.S., New Mexico and soon the Vietnamese plants. So no matter what happens to the manufacturing there's a lot of folks there that will remain as basically IPO.

它已经接近令人担忧的是肯定的。 我们已经获得了一些有利于中国市场的胜利,这将有助于我们看到从那里发生的事情。 我认为人们不理解这一点是清楚的,他们没有任何理由。 但是,我们在那里有一个非常庞大的采购队伍,并且与制造场地本身直接相关,因为他们为美国,新墨西哥和越南工厂购买了很多零件。 因此,无论制造业发生了什么,那里的很多人仍将基本上仍然是IPO。

迈克尔休斯

And then, what percent of your revenue do you think is ultimately sold into Chinese end markets? I know you had the one customer you called out last quarter, the quarter before but do you have a handle on that number? I would assume it's no higher than 6% or 7% unless you have Mexican and American capacity that's exporting there.

那么,您认为您的收入中有多少最终会被出售到中国终端市场? 我知道你有一个客户,你在上个季度,也就是前一个季度召集过的,但是你有这个号码吗? 我认为它不会高于6%或7%,除非你有墨西哥和美国的出口能力。

Brett Larsen

No. It's less than that. Considerably less than that. I'd say a point or two.

不,它不是那么的。 远不如此。 我会说一两点。

迈克尔休斯

And then, on the write off, was there any amortization that was reduced as a result of the write-off that would have helped the gross profit margin this quarter or the SG&A number?

然后,在注销时,是否有任何摊销因注销而减少,这将有助于本季度的毛利率或SG&A数字?

Brett Larsen

Yes. It's about a $100,000.

是。 这大概是10万美元。

迈克尔休斯

So it's not material.

所以这不重要。

Brett Larsen

No.

没有。

迈克尔休斯

On the $60 million in new business what are the gross margins look like on that business, is it better or comparable to your existing book of business?

在6000万美元的新业务中,该业务的毛利率是多少,是否与您现有的业务书更好或相当?

克雷格盖茨

I'd say it's comparable. Maybe a little bit better actually. Yes.

我会说它具有可比性。 也许实际上好一点。 是。

迈克尔休斯

It seems like you have the wind against your back just with the demand for the capacity in Mexico and the United States. So how does pricing look today versus maybe a year, 18 months ago?

看来,只要满足墨西哥和美国的产能需求,你就会背上风。 那么,与18个月前的一年相比,定价看起来如何呢?

克雷格盖茨

I'd say pricing is a little bit less frantic than it was. The supply for electronics has certainly gotten a lot less tight than it was a problematic and I think that people are being driven to move because of tariff situations or being psyched out of a big Tier-1 or in general a little less price sensitive than people that are not in that situation.

我认为定价比现在少一点疯狂。 电子产品的供应肯定比没有问题严重得多,而且我认为人们因为关税情况而被迫开动,或者被大型一级方式所困扰,或者一般来说价格比人们的价格低一些 那不是那种情况。

迈克尔休斯

And then, the ramp in revenue from the June quarter to the forecast for September at the midpoint is roughly $12 million. How much of that would be from new customers?

然后,从6月季度到9月中期点的收入增长大约为1200万美元。 新客户需要多少钱?

克雷格盖茨

Probably only, let's see about 3 million.

可能只是,让我们看看大约300万。

迈克尔休斯

So 3 million, so the other nine is that normal seasonality or is it some of this business that was kind of pushed from the June quarter into the September quarter?

那么300万,所以其他九个是正常的季节性,还是从6月季度推到9月季度的一些业务呢?

克雷格盖茨

Some of it was a push. Some of it was returning demand for the two customers that George asked about.

其中一些是推动。 其中一些是乔治询问的两个客户的需求。

Brett Larsen

Some of it also now building programs that are in their current ramp stage that we've had revenue in the past.

其中一些现在也正在制定目前处于我们过去收入阶段的计划。

迈克尔休斯

And then, two last questions for you. Do you have customer concentration statistics? I know at one point you had a very large customer. I think maybe they're entirely done now. What's your largest customer and then maybe your top ten what percent of revenue they are?

然后,最后两个问题给你。 您有客户集中统计数据吗? 我知道你有一个非常大的客户。 我想也许他们现在完全完成了。 您最大的客户是什么,然后可能是您的前十名,他们的收入百分比是多少?

Brett Larsen

I told our top five is just over 30%.

我告诉我们的前五名只有30%以上。

迈克尔休斯

And then, did you address the latest the 10% tariff as far as that impacting your business your cogs on a go-forward basis? Did that impact anything that you're purchasing?

然后,您是否已经解决了最新的10%关税,因为这会影响您的业务,您的齿轮在前进的基础上? 这会影响您购买的任何东西吗?

克雷格盖茨

It hasn't really had that big of an effect, if there's unavoidable tariffs we're fairly successful in getting the customers to pay for that.

它没有真正产生那么大的影响,如果有不可避免的关税,我们在让客户付钱方面相当成功。

迈克尔休斯

Thank you very much.

非常感谢你。

克雷格盖茨

Yes.

是。

会议主持员

Thank you. The final questions will come from Bill Dezellem with Tieton Capital. Please go ahead.

谢谢。 最后的问题将来自Bill Dezellem和Tieton Capital。 请继续。

William Dezellem

I actually do want to, just one point of clarification by my calculation 10% return on equity would be a dollar plus a share. So really what you would be on track for is $0.25 or more of earnings in the fourth quarter, a year from now. Is that am I reading the leaves correctly here and doing the math right?

我实际上是这么想的,只是通过我的计算澄清了一点,10%的股本回报率将是一美元加一股。 因此,从现在起一年后的第四季度,您的实际收益将达到0.25美元或更多。 这是我在这里正确阅读树叶并正确算数吗?

克雷格盖茨

Yes.

是。

William Dezellem

Thank you again.

再次感谢你。

克雷格盖茨

Thanks Bill.

谢谢比尔。

会议主持员

Thank you. There are no further questions at this time. I'll turn it back to the speakers.

谢谢。 目前没有其他问题。 我会把它转回扬声器。

克雷格盖茨

Well, thank you everybody for participating in today's call. Right now I look forward to talking with you next quarter. Goodbye.

好的,谢谢大家参加今天的电话会议。 现在我期待下个季度与你交谈。 再见。

会议主持员

Thank you. Ladies and gentlemen, this concludes today's event. You may now disconnect your line.

谢谢。 女士们,先生们,今天的活动结束了。 您现在可以断开线路了。

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  • Key Tronic Corp. 财务报告

互联网券商的港股、美股开户教程

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写在最后

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