Post by
Possibleidiot01 on Feb 19, 2023 9:44am
a few conference call takeaways
I would encourage people to listen to the call. Very forthcoming.
One key takeaway - Chatsworth sale and leaseback a great outcome. The transaction cost the company $375,000 in commissions, legal costs etc but it gives them surety for 17 years of plant availability for knowable costs ($21,000 a year) without tying up capital.
Inventory turns were up despite carrying above average inventory to protect against supply chain issues.
Also have been repatriatizing funds from their Chinese operations and plan to keep doing so .
On acquisitions , IMI gives them new customers and sales expected to be $4-5 million ( can't remember the time period) .Holoday improves their ability to service the U.S. market ( Buy American) and is expected to return to pre pandemic levels in 2024( 40 less employees today then pre covid) .
IMI has been a target for 15 years and with regard to Holoday , they've been talking for 10 years. Intregration expected to be on the easy side as they are not relocating operations unlike previous acquisitions.
There is a chance that the acquisitions could be delayed due to governmental approvals but the company has been through the process before and epects them to close as opposed to be cancelled.
Q1 seems to look similar to Q4 last year. There are $8.4 million of simulators orders that they think will ship in the first half but I got the impression Q2 is when the majority will ship.
Two analysts on the call - Acumen Capital as usual and Dunlop Capital , a first time participant? who asked a question about significant developments in the last year in a search to find out where growth will come from ( as Holoday runs on a two shift basis now) Brad Bourne brought up the the Boeing cockpit certification coming to some fruition and Jamie Crichton mentioned Defence Logistics becoming their #7 customer from nothing to $3 million in sales.
GLTA