Q2 2025 Park Aerospace Corp Earnings Call
Speaker Change: Music
Matt: Good afternoon. My name is Matt and I will be your conference operator today. At this time I'd like to welcome everyone to the Park Aerospace Corp. Second quarter, fiscal year 2025, earnings release conference call and a better presentation.
Matt: All lines have been placed on mute to prevent any background noise.
Matt: After this speaker or two more, there will be a question and answer session. If you'd like to ask a question during this time, please press star one on your telephone keypad. Instead, to withdraw your question, please press star two. This time, I'd like to turn the conference over to Mr. Brian Shore, Chairman and Chief Executive Officer. Thank you. You may begin.
Brian Shore: Thank you, Operator. Hello, this is Brian. Welcome to our fiscal 25 second quarter investor conference call. Nice to have you on board.
Brian Shore: with us today are Matt Farbar or CFO and also Mark Escoval, President C. E. O. We atown start earnings through news release right after the market closed.
Brian Shore: If you don't have that, you want to get access to that because in the earnings release, there's also instructions as to how you can access the presentation that we're about to go through. The presentation is also on our website. You want to have that up or the in order for the discussion to be more meaningful. After we're done, as the operator told you already, after we're done, we'll go to the presentation. We'll be happy to answer questions. So when we go and get started, when we go to slide two, our four looking disclaimer info. Let's know if you have any questions about the four looking disclaimer language. Slide three, our table of contents, beginning in slide one, we have our investor presentation, then we also have supplementary financial information attached as appendix one at the end of.
Brian Shore: presentation. We don't intend to discuss that at this time, but if you have any questions about the supplementary and financial information, let us know. Here we have picture, the clearest picture or mercury ever taken, what a beautiful picture in my opinion. Thank you James Webb's based telescope obviously taken by their chain with Space Telescope. And as many as you know, our proprietary sigma struts are incorporated into the structure of the James Webb Space Telescope. So that telescope has a special place.
Speaker Change: and our hearts. Let's go on a slide for the important results. When we focus just on the right-hand column of two, two, 16 million, 799,000 sales, 4 million of.
Speaker Change: $757,000 of gross profit, $3,200, $4,000 of you would die. Quickly, what did we say about our Q2 during our Q1 investor call? We said the sales estimate.
Speaker Change: 59. sorry, 15.9 to 16.4 million so we came in just a little tad above that.
Speaker Change: Ajustity of a diestimate, we gave you 3.3 millions, we came in right with an ad range. Let's keep moving here, slide five, please, continuing with quarterly results for some considerations for Q2. There's approximately $2.2 million of area and group brake carbs, Q2B and G product. So it'll turn Q2 under parts business partnership with air and group. We talked about this often, this is the fabric that we purchased from Airing Group for.
Speaker Change: A blade of programs for missile programs, and we then sell it to the OEM customers. It turned around pretty quickly within a couple of weeks. Fightable margins, it's really a markup. But we always say, well, don't worry, this one's the one we actually produce. The product and make the blade of materials, that's where the margins are quite good. But by comparison, there's only 750,000 of a blade of material sales through the Q2s. So you see that a little bit of an imbalance there, much more emphasis on a low margin part of the equation. [inaudible]
Speaker Change: Less emphasis on the...
Speaker Change: Haramards and eventually it'll come through of course there were significant ongoing expenses in Q2 related to bringing parts new production facility fully online You know about this including expenses for appreciation. Let's just stop there with the asterisk 1,260 dollars
Speaker Change: Sorry, 1 million University of the Thousand per year, the appreciation, expense, related to the new production facility. On the this obviously does not affect the dollar by definition, but it's important, but it does affect those profit most margin, approximately 2%.
Speaker Change: impactedto the growth margin just for the deappreciation appreciation andif you lookata ross margin two two what was it think twenty point fire was at the number let me quickly make sure tell right story at twenty point five always say elect thirty just appreciation alone would bring it above thirty but it's not just appreciation there's stp this stuff also included in the ebit a or affects the facilities mainten its utililityitiesation insurance other already expenses and expenses related to additional park people all related to the new facility
Speaker Change: is additional expenses. I thought this was an action, or a problem, these are plant expenses. I just want to understand that. Required to bring the new facility fully online in order to meet the needs of the coming juggernaut and close, which is a cry blade run.
Speaker Change: in the presentation. So it's all part of the planet but nevertheless these items are going to hold down our P&L and our margins until that facility has ramped up and right now it's very unutilized but we're doing it intentionally because we need to get going with that facility so we can meet the needs of the Gerberinole and not get behind the power curve. Flight 6, total of the shipments in Q2, 600,000, that's not a great number.
Speaker Change: was the International Shipment Issues Supply Chaining, Customers On Hall, or Miscellaneous Issues. Yeah, so you're a space industry not really a happy place right now. Little more difficult and more challenging for us. We have wars as well that are a factor especially when you talk about international shipments. There was no impact on Q2. The sales earnings from the storm damage except for the 64,000, sorry, I got that like dyslexic thing there. 46,000 of expenses reported as a special item in our Q2 earnings release. So other than the 46,000, no impact from the storm damage on Q2. Bring your sales or production lines.
Speaker Change: Foley Operational and Functional throughout fiscal to Q2. And that's quite remarkable. You remember the storm happened in the last few weeks, if you want.
Speaker Change: So for the all all lines before the operational throughout Q2 was quite remarkable, really a miracle, quite a cheap and fire fee for him, I say let's go on a slide 7, 5, we do this every quarter.
Speaker Change: Top 5 customers alphabetically, Airjet Rocket Don, these are the unusual suspects, you know, you probably boarded here in these names. They're involved in the factory missile system, aerospace fears, they're a rep for IAI, Israeli Aerospace Industries, which were important customer powers, and they produced the G280 for Gulfstream. GKN, that relates to the Boeing 1770, so that actually is not the...
Speaker Change: Planets, the TEDx won the engine that used an airplane, a crados, and a crass, and now we'll talk about it, and we'll record it.
Speaker Change: Top 5, I think, and we just select one of their aircraft this time. It's a BQM-177A. Quite interesting, you're planning for to look it up on the internet. Middleware of our infrastructure is yet to be used as a suspect. And Emerson, we chose the bomb art equalable, 8,000 represents them. Let's go on to slide 8. Estimated revenues by aerospace market segment, the pie charts. What's interesting to me is look at 22, 23, 24, 25 year-to-date. The pie charts are really very, very similar, but the big difference is 21 and that was the pandemic year one. Particularly our commercial aerospace was very much.
Speaker Change: I don't know how you say it, I mean in jeopardy, almost a collective one, I'll make it. Let's go on this slide. This is this slide that Atlanta does for us. Lain is the head of a customer service every quarter.
Speaker Change: Check comes up with really interesting cool programs to put in this little slide. The pie chart, this is for the first six months, radomes, racquet nozzles, drones, those we consider to be niche markets and military, but for us, even our crystal structures is niche. Perk programs quickly, David Clark, you know, the use customer, we love that customer, they make the helmets for the Air Force, and we supply materials, we also have kidding for them, which is nice. And then we got the MK-30, Kineserts for race on ESS, and I'm system, that's a blade of the MK-125 warhead for the SM-2, SM-6, those are hypersonic missiles, I think.
Speaker Change: That's actually not a blade as in this case, it's a one part of the structure, we can't say anything more about it. MK41, a vertical lens system, that's actually parts that we produce with our materials. It seems like a lane that was really focused on the missiles this quarter, so she must have been able to find a lot of greens on missiles, I guess. So let's go into, but nice elections, thank you Lamar, this one is like 10. G or space, jet engine programs, another slide, we give you every quarter. You have to understand some of you complain about week to week over things too much. There are new investors that dial in, you know, every quarter.
Speaker Change: We have to be fair to them too, so we try to strike a balance here, you know.
Speaker Change: So, yes, we include this light every quarter. From pricing the LTA, it's a requirements contract from 1929 with the MRS, which is a sub-investing engineering space large Singapore aerospace company. We built it with done this factory.
Speaker Change: for GE, actually, in MRAS. That's in production, you know that. So what's going on here? Results were qualified for the COMPOSMATURAL, for the cells, for us to versus on these programs. But you know, as they're all GE engine programs, why is that the reason is that when we entered into the LTA originally, MRAS was a sub of GE aerospace. So we've got all these GE Aerospace programs at that point. And then a subsequent to that GE sold.
Speaker Change: MRS, the ST and Zering, but we continue on these programs. So let's go on to, and I'm not going to go through the programs, have any questions about in what we're going to.
Speaker Change: Space Note, please. Slide 11, continuing with G Aerospace, MRS, Park LTA provides for an approximate 6.5% weighted average price increase in fact the June 1, 25% for the products covered by the LTA. I haven't asked about this a lot, a lot, a lot. I said, well, I would like you to want to say, but now we're saying, you know, kind of...
Speaker Change: with a
Speaker Change: is that's the presentation where it's appropriate. Part Composite Turals, I don't forget we don't have to cover that one, we cover that every time. Let's go to the last one, thank you, it's the David Rapp for Gen X engines for the Boeing ship and aircraft.
Speaker Change: that's produced with parts AFP and other composite materials. Park recently received a PO for Poxley Section Ability and Box for materials for this program. So this program is ramping. Our customer received a large order for case ref units. We're clearly not going to talk about numbers, but this was flowed down to us in terms of a PO when there's more coming I suspect a lot more. So this program is no longer just kind of development. It's really starting to ramp out. Part materials for this program expect to be included in life or program. So they're not in the LTA because this came after the LTA.
Speaker Change: But the expectation is to put the Gen X, the Gen IX program into the life of program in the second flight 12.
Speaker Change: So to try to watch the time, MRS Park LTA was amended to include three film, These are product forms for composite bond, Mel Bond. This is really outstanding because these film, these are formulations are developed through a joint development agreement with MRS HGE. And a lot of time the effort went to this, but it's outstanding because as soon as the development's done, then we go right into qualifications. That's really a very wonderful and special MRS qualification of two proprietary film, These are product forms in progress, one at three because
Speaker Change: So this is the process. We go through qualification with MRS and then MRS needs to go through a certification process with their customers on selective programs. So the first program that MRS intends to get a certified on does not use metal bonds. So that's why we're not qualified metal bonds. This point that will come later. Life of program agreement requested by MRS and STE. A agreement is under negotiation in a more cluttered team of I guess three park people to MRS a couple weeks ago. We spent a couple days. They spent a couple days working on the agreement with MRS. So it's under negotiation. So we finally made some good progress on it. But just keep in mind, this is what they want. They're requested to be MRS and STE. We're happy to do it.
Speaker Change: Well, hey, there are the ones who requested it, and for good reason. Okay, let's go on to 13 slide 13 continue with the additional will different updated GE Aerospace programs now 8 to 20 NEO aircraft family includes all these areas. I won't read them off. Airbus has a huge and underlying use backlog of 8 to 20 NEO aircraft for more than 7,000 to 50 threats. So just so many airplanes, unbelievable number of airplanes. Airbus has been had been maintaining that intent. To achieve a rate of 75, 8 to 20 NEO family aircraft delivered for month in 26.
Speaker Change: Let's go on a 14. So this is just a little history here about the deliveries over the prior years of date for 20 Neil aircraft. You can see that kind of peak to 19 and then what happens pandemic number still off 23. They got back to the pre pre pandemic rate, you know, 5.71 prepare 5.61 and your date to September about 396, not about 396 deliveries, compared to last year your date 391 don't analyze that doesn't work because aircraft industry for some, you know, funny reason that a lot of deliveries happen to last quarter. But it's basically saying we're kind of tracking last year, which is a little disappointing. We're hoping that we would be able to show you know a little bit of improvement last year, last year it's for
Speaker Change: I'm John June 24, 24, Airbus announced it's pushing out its goal of achieving the 75.
Speaker Change: your craft family, Montenegle, Libri, rate from 26 to 27.
Speaker Change: Not surprisingly, Airbus highlighted supply chain issues, oh boy, supply chain issues, they should rule over again, especially engine availability issues as a key reason for the push-up. You know, it's funny about this. Do you remember, what was it a year or two ago? We were all clear with engines, you know, it was not just Airbus said at the engine company said it, you're just all over an issue, everything's great. Now we're back in the super engines.
Speaker Change: I don't know what to make of that, but you know, now engines are front center in terms of what the main supply chain issues will about supposedly maybe casings and forging for the engines, but it's engines. That's the problem. Clearly, it's a funder use backlog.
Speaker Change: There was one already be at that 75-5 for months right, you know.
Speaker Change: Why is that? How many are we saying how many airplanes are in order to 6,000? So if I got to go back, sorry. We were with that number, no sorry, 6,7272,7225.
Speaker Change: Okay, so let's say there are 50 now, which maybe you do not, but let's say there are 50 now, that's 600 per year. Well how many years is that with, so we're 7,000 orders? The problem is here but I just want to tell you where airplanes are.
Speaker Change: So, you know, you water an airplane, you know, deliveries with 13 years down the road. That's not very conducive to selling airplanes. So, one of the reasons Airbus wants to push it up to 75, 75 of the places 900 per year.
Speaker Change: that's still not you and you had next year but br lead time down a lot which ll plplanes which is what they want to do a lot more point so anyway ie ' to seventy five liververs for months we certainly believe they will ieve in twenty seven we believe they will but they're not sure really matterters very much where that goals achieve that twenty seven or maybe twenty eight key things for parkis that we need to be ready in thekey say is they will get to that rate all these orders will take more orders and we just need to be ready and you know we not sure you know what the tim ing the rample bei 't anybody sure we just need to be ready number one number two
Speaker Change: Those sales will be there in their credible sales report. 16 approved engines for the 802 aircraft.
Speaker Change: There's two approved engines for day 320.0 and there's the little CFM leaf 1A, that's the engine program we're on. Then there's a Pratt, Pratt would be a PW 1100G GTF engine, you're not in the program, just on the CFM program.
Speaker Change: Program. We spoke a lot to lots about the durability issues, especially for the predage and won't cover that here. So let's see according to the September 24th edition of Air Engine News, CFM, LEAP-1A's market share, affirmative engine orders is 64.4%. That's a nice market share. I don't remember, but I think last quarter was maybe 62. It's been around that 62, 63, 64 range, moved up last quarter, but that may not be sustainable. I don't know, but at least it's well over 60. At the delivery rate of 75, 820 NIO aircraft per month, at 64.4% LEAP-1A market share translates into 1,159. Just do the math with...
Speaker Change: 1A engines per year. What's that worth to park? Well, I'll just go to slide 34. It'll give you, you know, an idea of what it's worth to park each year. They're currently now. This is just one of these youth numbers 8,238 firm, firm leap 1A engine orders. That's a lot, a lot of engines. What are those stuff for owners worth to park?
Speaker Change: Well, I mean, go to slide 34 or it tells you what we get per engine, I think it's about a quarter billion dollars.
Speaker Change: and that assumes that we're going to, you know, continue to fly after 29, which, whether we have a life form or not, we're quite confident we will. And it does not assume done take an account. There will be price increases during that time period, but you think about a conceptually quarter billion dollars, as it really mattered to us, whether it's 27, 28, 29, it's just a lot of, you know, a lot of revenue for Park. And those engines are going to be sold. You know, those engines are going to be produced and sold. Those are our engines. That's our program.
Speaker Change: Airbus, okay, here's one of the variants, A for 21, XLR.
Speaker Change: Airbus to open additional XLR bloodline and to line.
Speaker Change: The age for 21XLR part by a leap on an engine received its Yoset Type Certification is a lie that's really nice to do, that's good.
Speaker Change: and the YASA is the European equivalent of the FAA. The first day 320 moon XLR delivery schedule fled just a month to Iterbury, and according to Airbus it has over 500 orders for this program, important program for Park. Let's keep going, slide 18. Okay, now let's go to Co-MAC, Co-MAC 919. That's the single aisle airplane that Co-MAC developed to compete against the 737 and 820. It has another kind of leap engine. This is called LEAP1C. I don't know, maybe she stands for Co-MAC.
Speaker Change: It's a variation of the same engine, that's in the Nature Funding Neal. Polemite Police will achieve a productive rate of 150 919 aircraft year between 28. I think that's credible, you know. They're investing huge amounts of money in production lines, I think to now three final similar lines. A report to have over 1,500 orders for 919 aircraft, 919 is an offline for Air China, Chinese Street and China Southern, all Chinese airlines. Comact clearly has designs on getting out, you know, it's all these airplanes out to China, though.
Speaker Change: They've delivered 9 so far and they've logged over 10,000 flight hours. This is it.
Speaker Change: And important program for Park will see what happens but we believe in our customer believes in very important programs. Blacks of upside opportunity. Let's talk about this with slide 19 rather triple seven X year craft with G 9X engines. And August 19 going round at their triple seven X.
Speaker Change: test the flight fleet after attacking engine attack, task release shoes.
Speaker Change: and the fleet remains grounded while Boeing continues to evaluate the problem. These engines, they achieved a record of 134,400 pounds of thrust. That's why those engines attached to it's a pretty important. They certified for 110,000 pounds.
Speaker Change: When it perspective, the Leap 1A engine for the day for 2020, the Batory 2000 pounds. So big, big, big engines, lots of power.
Speaker Change: October 11, 2004, Boeing announces pushing out its first delivery target to 26 for 25 because of development challenges flight test pause in the work stoppage. Boeing says they, it's starting up Boeing, according to data, Boeing has 481 orders for these airplanes. So, a little bit of setback, but I mean, the thing is, this is a clean sheet airplane, so it's not surprising that they'll have problems like the engine attachment problem. It's very, very important that this happen that this is detected during the development and electrification phase, not after this airplane flying to the air 38 does eat with.
Speaker Change: 400 people on it. So this is a real important program for Park. We just we are the best wishes for Boeing obviously they're not having a bad time now, but we hope that Boeing finds a way to, you know, to move ahead and make these better. Let's go on to slide 20. We couldn't quickly cover this pretty much everything here is provided for history for context. Um.
Speaker Change: in the bottom right here, fiscal 25 Q2, $7.1 million of sales. This is, I'd like you to read the title. Here is big change of program sales history and forecast estimates. $7.1 million in Q2, I think our estimate was a little lower than that, but kind of in the range. And our forecast for Q3 is 6.25 to $7 million, that's our forecast for Q3. For the year, $23.26 million, now we provide that forecast last quarter, we're just sticking with it for the year. [inaudible]
Speaker Change: Okay, let's go on to slide 21, Parks Financial Performance History, forecast estimates. So again, most of it is provided, most of it they here provided for our history is dream context. fiscal 25 Q2, you already have that number 16.7, we point to believe that our forecast for Q3.
Speaker Change: 13 and a half to 14 to 40 million sales, 33.3 million dollars, even though the footnote subject is blocking risk for limitations.
Speaker Change: We'll discuss that even further in the next slide. So let's go on the slide 22. This slide is the exact same slide we presented to you last quarter.
Speaker Change: everythings historical than a forecast estimates not change in work estimates so i for has estimate for the year prem big range of sixty sixty five million sales thirteen and fifteen ion dollars and this is what we provide last quarter so i'm not changing it but look at the important to supply chain limitations affect the year ace industry so let stop per second the air space industryes not really a happy place right now not so much fun you know for perspective
Speaker Change: The European Air shows the big ones in Paris in the farm for all turn every year. Last year was at Paris, lots of exuberance, maybe irrational exuberance with a bit of hindsight about all the orders they're taking, all the engines, all the airplanes and engines being sold, they're always very excited about that wonderful, wonderful, wonderful. Okay, that's nice. Then we fast forward to the farm bro this year, very different tone, very different mood, kind of gloom. Because everything that is coming out of farm bro, supply chain, supply chain, supply chain, supply chain, supply chain.
Speaker Change: The problem has been solved.
Speaker Change: You know, one comment I guess was a little sarcastic was who cares how many engines I sorry how many airplanes you can What does you can take if you can't make them what what what difference was to make obviously that's being sarcastic, but that was the recent mood which
Speaker Change: I guess you will look at that way as we go through these kind of fun and deja vu all over again how many times have we heard less before Yes supply chain issues almost over or about solved about solved everything's gonna be fine and they were back in a suit you know why is that I don't know maybe it's a psychological thing my guess is they never were solved with just a wishful thinking and wishful thinking is contagious one person says it no person says it okay fine but supply chain issues are clearly not resolved they're not have not gone away and they have an impact upon the industry so just keep that in mind with this forecast that you know we have all the risk that we put in a 10k but supply chain issues are a key risk for this forecast so and of course we all
Speaker Change: and we're going to be on the course of the juggernaut and that's not just a temporary thing, that's holding back or a top line, but a bottom line. Let's go on the slide 23.
Speaker Change: I'm trying to hustle you a little bit if you can. Oh, general park updates. Yeah, I guess we're just covering a lot in this presentation. So if they be taking a little bit longer solution to your project, we plan to purchase and install an additional solution to that. Why we doing that? We'll take approximately three years to design and specify the equipment to install and conduct actual trials, qualify the equipment for Dr. with customers three years. So we're quite concerned. When we look at the opportunities we have, we look at the programs around the opportunities we have, we're concerned that we're going to run our capacity. So we need to move now because it's a three-year time frame. We can't wait three years. We do that. We're what's the term screwed, I think. The budget for the project is about $70 million. It's just something we decide to do and we're going to...
Speaker Change: We have the project. This will be placed in a new factory. Remember, we told you that there was a big area set aside for a new line. Well, this is where the line is going to go.
Speaker Change: This equipment is essential to these programs, so it's needed, this OEMs quite a large and park, but they want us to be Parker's 50-50-55 million each, and we're now in negotiating the agreement, but we plan to do this, it has to be done.
Speaker Change: This additional line is essential for the military programs. So we're talking a little bit about money as well because we want to get to that later on turns over cash. 24, like 24.
Speaker Change: We're recently qualified in essential high profile missile defense program, Arkansas potentially, sorry, this program is potentially larger for us than a pack-free missile program. These are revenues expected for a park next year and program is expected. They're ramps from there. It would probably make a $1 million in capital investment to support this program. This is important.
Speaker Change: The cops should be for a porc, let's put it that way. I can't, we can't talk.
Speaker Change: was given more details about the program, but you would have heard of it that's for sure. So next item, Park recently entered into a licensed agreement with a major OEM to license technology use for hypersonic missile programs. We understand that Park is the only license to see this technology. We're currently conducting manufacturing trials, a significant potential opportunity for Park Online Certificate Park. We need to make a capital investment of approximately 3 million. I just want to stop here because...
Unnamed Speaker: These are the uncertainties, and that's not the standard for us, you know, sharing things with you.
Speaker Change: These are the uncertainties, and that's not the standard for sharing things with you. I think you would want to know about important opportunities for parks, but if you just want to wait for these things to be locked, that's different, but I don't think that's really what you want to hear. My point is that this may happen, may not happen.
Unnamed Speaker: I think you would want to know about important opportunities for Park, but if you just want to wait for these things to be locked, that's different. But I don't think that's really what you want to hear. So my point is that this may happen, may not happen.
Unnamed Speaker: I sure older or complained about, well, we talked about some of the program, a couple years didn't go, didn't happen. Well, yeah, we talked about it because it's important, and it seems serious. That wasn't a guarantee it's going to happen. So just keep that in mind, alright?
Speaker Change: I'm sure older are complained about, well, we talked about similar program a couple years didn't it? Well, yeah, we talked about it because it's important and it seems serious. That wasn't a guarantee. It's going to happen. So just keep that in mind, right? Please, slide 25. New LTA, which EERA space is, these are separated in progress for county or 25 to 30 under which she's wearing two additional products for Park and incremental revenue from that is 3 million. This is not part of the juggernaut, by the way, this is separate incremental revenue. This is not the MRS LTA, this is the GERA space LTA.
Unnamed Speaker: Please fly 25, a new LTA with GE Aerospace. These are separated in progress for county or 25, the 30 under which she is, and we're in two additional products for Park. An incremental revenue from that is 3 million. This is not the Juggernaut, by the way. This is separate incremental revenue. This is not the MRS LTA; this is a GE Aerospace LTA, separate LTA.
Unnamed Speaker: Potential JME with major heat of company related to diseases for the aerospace industry; those discussions and negotiations in progress. We've had numerous and person meetings. I believe there's one next week actually in our facility in a significant couple of investment, maybe necessary support to JME people see.
Speaker Change: and a separate old team.
Speaker Change: Agency. Potential JV with major adhesive company related to adhesives, where they are safe industry, those discussions and negotiations and progress. We've had numerous and person meetings. I believe there's one next week actually in our facility in a significant capital investment, maybe necessary support to JV. We'll see. Another potential JV with a major Asian industrial conglomerate relates to the manufacturer marketing sale of certain parts, commercial composite materials products in Asia. So these discussions and negotiations in progress, they sure are between a team over in Asia right now. And we've had a number of meetings already. This could involve significant capital contribution part. This OEM is quite
Unnamed Speaker: Another potential JME was a major Asian industrial conglomerate, related to the manufacture, marketing, sale of certain parks, commercial deposit, materials, products, and Asia. So these discussions and negotiations in progress, they sure are basically a team overnight right now. And we've had a number of meetings already. This could involve significant capital contribution park. This, this OEM is quite aggressive. We're trying to slow down a little, but they definitely want to do this. So it's, I think, maybe a good possibility actually happens.
Speaker Change: aggressive. We're trying to slow down a little, but they definitely want to do this. So I think maybe a good possibility that actually happens. I slide 26.
Unnamed Speaker: A slide 26.
Unnamed Speaker: Totally different topic, but still an update. MRS LTA was just a car; maybe I'd try to cover too many things in this one presentation. All right, MRS LTA scorecard. Part scores, you can see the scores. The first item was actually a mistake; it really should have been 100. What do these scores mean? What is their significance? We told that MRS has over 700 suppliers. Are these typical MRS suppliers' scores? No, I don't think so. I would told that most suppliers would be happy to get 80s.
Speaker Change: Totally different topic but still an update. M.S. O'PIRECORD was just a card, maybe I'd try and cover too many things in this one presentation. M. O'PIRECORD. Part scores you can see the scores. The first item was actually mistake. Really should have been 100. What do these scores mean? What is their significance? We told that M. O'PIRECORD has over 700 suppliers.
Speaker Change: These typical numerous suppliers, I don't think so. We're told that most suppliers would be happy to get 80s, I've been told that numerous times, and what I don't get 80s. These scores achieved by other suppliers ever, I don't think so.
Unnamed Speaker: I've been told that numerous times, and what I don't get 80s. Are these scores achieved by other suppliers ever? I don't think so. So similar theme is parked. MRS is best supplier over 700. That's what I'm told. How does that happen? There's a board room thing or a boiling thing. This is such a special situation for parked. And I'm not sure whether it's fully appreciated how special it is to achieve in accomplishment this is and how special it is for parked. They have this kind of relationship with a company like this. See, it's a strategy for customers to love us.
Speaker Change: So similar thing is parked and rest is best supplier and over 700.
Speaker Change: That's what I'm told.
Speaker Change: How does that happen? There's a boardroom thing or a boilroom thing. This is such as a special situation for Park, you know, and I'm not sure whether it's fully appreciated, how special it can achieve an accomplishment this is and how special it is for Park to have this kind of relationship with a company like this. See, it's our strategy for customers to love us. But in order to that strategy to be implemented, that's more of the boilroom thing. That's really a culture thing.
Unnamed Speaker: Well, in order to that strategy be implemented, that's where the boil room thing. That's really a culture thing. That depends on for accounting very dedicated employees. That's how we achieve these scores. That's how we become their best supplier, and what we're told to me with their best supplier. So, yeah, I mean, example. I'm sorry to take the time, but just a little example. John Moone, we were told his house, but we would ever know that because he's never released a planet, and something has to be shipped. Doesn't matter what time, he's not going anywhere; he's not going anywhere until that truck has left the dock, you know.
Speaker Change: that it depends on for having very dedicated employees, that's how we achieve these scores, that's how we become their best supplier and what we're told in you where they're best supplier so yeah I mean example and sorry to take the time but just a little jappel.
Speaker Change: John Moone, I mean we were told his house but we would ever know that these season never release a planet and something has to be shipped.
Speaker Change: doesn't matter what time. He's not going anywhere. He's not going anywhere until that truck is left to dock.
Unnamed Speaker: And that kind of dedication, if you want your customers to love you, you need to have people that the rest of strategy is nice, but in order to implement it, you need to have people that are very dedicated.
Speaker Change: That kind of dedication. If you want your customers to love you, you need to have people like that. The rest of strategy is nice, but in order to implement it, you need to have people that are very dedicated. So let's go on to slide 27. Questions about this is now different topic. We got recent questions from investors. Okay. So I'll hold a new section here that we have now previously.
Unnamed Speaker: So let's go on to slide 27, questions about. This is now a different topic; we got recent questions from investors. Okay, so I'll hold a new section here that we have now previously.
Unnamed Speaker: Let us know if you want us to continue with this, but we thought to be interesting to include some of the questions that we've received from investors, questions about our film. He's a product line called Arrow with Here. What advantages does an Arrow here have over competing products? Well, Arrow industry is a little strange; it looks for a crew to see more than better. In other words, better is not really such a good thing. When we developed a film, he's a member we did that with a joint development project with GE and MRS, and we're a lot of tweaking a lot of fine tuning for their needs, but generally speaking, we want to equivalency, because if it's not equivalent, it's better than the customers can have much more difficulty incorporating into their programs. Why would a customer then buy it from Park, if it's just equivalent?
Speaker Change: But if you want us to continue this, but we thought it would be interesting to include some of the questions that we've received from investors and questions about our film, he's a product line called Arrow with here. What advantages does an Arrow here have over.
Speaker Change: Computing products. Well, the era industry is a little strange. It looks for a equivalency more than better. In other words, better is not really such a good thing. When we developed a film and he said, remember we did that with a joint development project with GE and MRS and we're a lot of tweaking, a lot of fine tuning for their needs. But generally speaking,
Speaker Change: We want equivalency because if it's not equivalent, if it's better, then the customer is going to have much more difficulty incorporating into their programs. Why would a customer then buy from Park if it's just equivalent? Because it's because of Park more than product itself. Why are we how are we selling? We're selling Park. We're selling
Unnamed Speaker: Because it's because of Park, more than Park itself, they're buying. How we saw it, we're selling Park, we're selling the fact flexibility, responsibility, responsibility. So people say, well, what is the expression of a customer? Says, jump, you say, oh, hi, we don't do that. We say how high before they say jump, but I'm not kidding; we say how high before they say jump. That's what we're selling. Do we anticipate that Arrow here is more? Arrow is here, sorry, the tongue twister, margins will be higher lower than Park's average margin. This is a question from an investor, higher, and we're quite sure of that.
Speaker Change: So people say, well, what does the expression, oh, a customer says jump, you say, oh, hi, we don't do that. We say, oh, how high before they say jump, and I'm not kidding. We say, how high before they say jump. That's what we're selling. Do we anticipate that arrow here is more arrowed here is, sorry, the tone twister. Marges will be higher lower than parks, average margin. This is a question from a investor. Higher, and we're quite sure of that. Several years out, what sort of, what sort of range of revenues are we targeting for arrowed here? We're not sure, the strategy though.
Unnamed Speaker: Several years out, what sort of, what sort of range of revenues are we targeting for Arrow here? Well, we're not sure; the strategy, though, is it really a revenue strategy? It's a broad and a product line we offer to customers, which manufacture aerospace composite structures. That's why we love it, he's just so much, because customers buy a product that may composite structures. Obviously, he's known; they need to buy composite materials to make composite structures, but they also use it; he's in a production of these composite structures. Just reference though, since we're asking about revenues, the A320 programs, the first program that Arrow has intends to get our film, he's a certified on, and that's $3 million per year at this, once the program ramps to 75 airplanes per month.
Speaker Change: is it really a revenue strategy is to broaden the product line we offer to customers which manufacture aerospace composite structures. That's why we love it. He's a so much because customer is via product and they composite structures for space obviously he's no thing to buy composite materials to make composite structures but they also use it he's in the production of these composite structures just for reference so since you are asking about revenues.
Speaker Change: The A320 program is the first program that M.R.S. intends to get our film he's a certified on. And that's $3 million for year at this once the program ramps to 75 airplanes per month.
Unnamed Speaker: So, obviously, that's not it. We got lots of lots of other opportunities working on. That's not just what they're going to ask, but other companies as well.
Speaker Change: So let's, and obviously, that's not it. We have lots of lots of other updates working on. Not just with Air Mirage, but other companies as well. It's like 28 more questions. What about that?
Unnamed Speaker: So, I'd like 28 more questions.
Unnamed Speaker: What about that major new manufacturing project condition we discussed in our Q2, which I started Q4, investor presentation last year. What's the status? It's morphed into a larger product project. Why wasn't discussed during our Q1 investor presentation? Well, the customer, which initiated the project, now wants the project to be a potentially larger, quite a bit larger project. This is JV, like with new coal, we're, you know, two companies, an owner, I guess.
Speaker Change: A major new manufacturing project initiative we've discussed in our Q2, gosh, our Q4 investor presentation last year. What's the status? It's morphed into a larger product project. Why wasn't discussed during our Q1 investor presentation? Well, the customer which initiated a project now wants a project to be an aerospace composite structures manufacturing technology JV.
Speaker Change: A potentially larger, quite a larger project. This is JD, like with NuCo, two companies. What about our strategy? What is it? Somebody actually asked if we have a strategy. Yes, we have a strategy. We call it the X strategy. We certainly not to take the time to go into it now. But let us know if we want to discuss our strategy. Probably take five minutes in an upcoming presentation. It's a straightforward strategy. It's not like an elegant strategy. It's a very straightforward. So nothing we tell you is going to surprise you, but we have to go over it, which you should like. Slide 29.
Unnamed Speaker: What about our strategy? What is it? Somebody asked, actually, we have a strategy. Yes, we have a strategy. We call it the Extra Strategy. We certainly not could take the time to go into it. Now, well, let us know if you want to discuss our strategy, probably take five minutes or, you know, in the upcoming presentation. It's a straightforward strategy. It's not like an elegant strategy. It's a very straightforward. So, nothing we tell you, it's going to surprise you, but we have to go over it, which you should like.
Unnamed Speaker: Slide 29.
Unnamed Speaker: We're going to get from topic, our buyback authorization. We announced on May 23, 22, that Park Aerospace purchase of 1.5 million shares under this authorization. We purchased a total of 551, 729 shares in the average price of 1294, total cost of 7.1 million dollars, so we're going to spend some real money on this. Now, in highlights, though, recent buyback activity under the authorization since July 24, 24, the significance of July 26, that's after the black, the Q1 black on ended, was lifted. We purchased 331, 1, 180 shares of Comstock, average price of 1288, total cost of $4.25 million. Like I said, we're spending some real money on this now.
Speaker Change: A different topic, our buyback authorization, we announced on May 23, 22 that parked or authorized the purchase of 1.5 million shares. Under this authorization, we purchased a little 551.
Speaker Change: 729 shares in the average price of 1294 total cost of 7.1 million dollars so we're going to spend some real money on this. Now in high-likes though, we're going to buy back activity under the organization since July 26, 24 of the significant, so July 26, that's after the blackout that you won blackout ended, was lifted.
Speaker Change: We purchased 331,000, 180 years of Comstock, average price of 12,88, and a total cost of $4.25 million. Dollars, like I said, we're spending some real money on this now. Why do we do that?
Unnamed Speaker: Why do we do that? Because we thought the price was stupid, ridiculous, we, it's not really our preference to buy stock, and then we'd rather use our cash to take advantage of all the our produce we have. But when the stock price is, we feel stupid, ridiculous; we don't think we have too much of choice. We'll be by more; I don't know what we'll have to say, maybe.
Speaker Change: Why we do that? Because we thought the price was stupid, ridiculous, you know, we thought really our preference to buy stock, and then we'd rather use our cash to take advantage of all the opportunities we have, but when the stock price is we feel stupid, and ridiculous we don't think we have too much of a choice. We'll be by more.
Unnamed Speaker: So let's keep going. That's our buyback program, slide 30, credible cash dividend history: 39 consecutive years of dividends. We've paid $596 million or $29.10 per share, so it's fiscal 25. So a little bit of a thing here that we're developing, that concept anyway. So we have a regular dividend payable in November. Five, it's done right. That's the, so if you pay it on November 5, 2024, so sorry, that's a typo, just notice that. And we'll have paid $598.6 million at that point. And then let's say on this note, typo, the next regular dividend is planned to be declared by Parts Board about January 9, 2005.
Speaker Change: I don't know what to say, maybe so let's keep going I've got my back program, slide 30, credible cash dividend history, 39 consecutive years of dividends, we've paid $596,000, or $29,10 per share since fiscal 25.
Speaker Change: So, a little bit of a sting here to be developing a concept anyway. So we have a regular dividend payable under the bumper.
Speaker Change: Um...
Speaker Change: 5, it's done right, so if you pay it on, then remember 5, 2024, so sorry, that's a typo, I just noticed that and we'll have paid 598.
Speaker Change: 0.6 million at that point.
Speaker Change: and then it looks like there's another type. The next regular dividend is planned to be declared by Park's Board about January 9, 2000. That's both between 25. Sorry about this and paid about February 4, 25. And that's within the fiscal year. Somebody's not going to get paid this week of these mistakes. Unfortunately, I think that somebody's made these on the one of the main mistakes. So sorry about that. But the concept is during the fiscal year, you can look at the highlighted language we'll have paid by the end of the fiscal year rather. 601.1 million dollars in dividends is 25 and also $29.35 per share since 25.
Unnamed Speaker: Sorry about this, and paid about February 4, 25. And that's, well, within a fiscal year, somebody's not going to get paid this week of these mistakes. And of course, I think that somebody's made this on the way to the mistakes. So sorry about that. But the concept is during the fiscal year, you look at the highlighted language, we'll have paid by the end of this fiscal year, rather $601.1 million in dollars and dividends is 25. And also $29.35 per share, since 25. Do the math: 0.5, 25; that's 21 years. So if you want to do the math, divide $601.10 by 20.
Speaker Change: Do the math, 0.5, 25, that's 21 years, so if you want to do the math, divide 6 or 0.1 by 20.
Unnamed Speaker: Sorry, that's 21 years; 21 years. Sorry, 21 years, so divide $601 by 21; that's 28.6 million per year. Just FYI, you're going to divide 29.35 by 21, that's a dollar for a share per year of dividends that's paid since, on the average, paid since this 25, the beginning of 25.
Speaker Change: I'm sorry, that's 21 years, 21 years, yeah. Sorry. 21 years, so device 60, 1.1 by 21. That's 28.6 million per year. Just FYI, you're going to divide to 29.35 by 21. That's $1.40 per share per year. You have dividends paid since, on the average, paid since this 25, the beginning of 20 to 25. Let's go on to slide 31, our balance sheet.
Unnamed Speaker: Let's go on to slide 31, our balance sheet. We alone have a little term debt. 72 million dollars of cash. We just talked about that. We have one more transition taxes from a payment of 5.1 million and two and a 25. I think you'd better cash. So I'm known or likely cash expenditures of 5.1 million; that's not like less known. That tax payment June, we have to pay that. Sure, buy back, and just with 20, and fiscal, sorry, 25.23 in our current quarter. That's 2.4 million; that's already been spent. So that's a dollar item. So it's a three-year project, $1.5 million.
Speaker Change: We have a loan to a loan to a debt, 72 million dollars, of cash, we just talked about that.
Speaker Change: We have one more transition taxes from a payment of $5.1 million to a $25. Thinking about our cash, so I'm known or likely cash expenditures of $5.1 million, that's not like let's known, that tax payment June.
Speaker Change: We have to pay that. Sure, buy back and fish with 20 and fish can all start 25 Q3 in our current quarter. That 2.4 million, that's what we've been spent. So that's a known item. So let's continue your project. 7.5 million, that's an estimate.
Unnamed Speaker: That's an estimate. Contributions to your way of partnership. Well, 5 million, that's what we're talking about. So that gives us around number of 20 million. So 72 million minus 20 million. 9.62 million.
Unnamed Speaker: So we go to slide 32. When we think about 52 million dollars, well, that doesn't include a lot of other things that we've already discussed, a lot of items, which we will iterate here. These items that are listed, we've already discussed in this presentation from the most part. And some of these things will happen. We also have, like we have additional expenditures in the plant. When you actually start a production, matter how much time you spend with the trials and qualification, we started production, we realized some other things that might be needed. So there might be some additional investment that's required in the plant, equipment investments.
Speaker Change: Thank you, my dear.
Speaker Change: So we go to slide 32. When we think about 52 million dollars, well that doesn't include a lot of other things that we've already discussed.
Speaker Change: We want to iterate here at these items that are listed and we were just discussing this presentation from the most part. And some of these things will happen. We also have...
Speaker Change: We likely have additional expenditures and new plant when you actually start a production, no matter how much time you spend with the trials and qualifications, we start a production, you realize some other things that might be needed, so there might be some additional investment that's required in the plant, equivalent investments. So what do we think about our cash? We think that we don't have a limited cash, we think we need to be real careful when we spend it. Let's go on to slide 33, the juggernaut, we've covered this for the last three quarters, so we'll have to rush through it.
Unnamed Speaker: So what do we think about our cash? We think that we don't have a limited cash; we think we need to be careful. I was spending it.
Unnamed Speaker: Let's go on a slide 33. The jargon on it, we've covered this, the last three quarters, so we'll try to rush through it. This financial outlook for, I look for GER, space yet engine programs and for Park, the jargon on it. So what's the timing? We're not sure, but it's coming in; can't be stopped.
Speaker Change: Finish Alex for Gears, face yet engine programs and for Park that you are going on.
Speaker Change: So what's the timing? We're not sure, but it's coming and can't be stopped. We've got to be ready. Going to slide three, four is the only change here, unfortunately, is a G9X program. So we moved up that number. That's based on specific inputs we have from our customer.
Unnamed Speaker: We've got to be ready, going to slide 34. The only change here, unfortunately, is a G9X program, so we moved up that number. That's based on specific inputs we have from our customer. We've heard higher rates, but that's based amongst specific inputs, rated inputs we have from our customer. And as we said, we're not going to provide any more detailed information, because it really is not our business; it's more of the volume G. It's close to how many airplanes they plan to make per year, not for us to do that.
Speaker Change: We've heard higher rates, but that's based amongst specific inputs, rate input we have from our customer. And as we said, we're not going to provide any more detail information because it really is not our business. It's more of the Boney and GE disclose how many airplanes they plan to make per year, not for us to do that. So what we go on to the next slide, 35, Park Aerospace Core Pilellalook Conceptual Financial outlook. We started with a baseline year of fiscal 24. The estimated GE programs are criminal sales. That's just math, you know, taking the number from the prior slides, attracting the 24 sales. I think that was 21 million. The incremental sales rate.
Unnamed Speaker: So what we go on to the next slide 35, Parker space, core pilot, conceptual finance outlook. We started the baseline year of fiscal 24. The estimated G programs are criminal sales, that's just math, you know, taking the number from the prior slides, attracting the 24 sales. I think that was 21 million, incremental sales, 3, 7.6 million, estimated giant, 9, sorry, 9G programs, you know, sales, 15 million. So we tried to do something a little different year. In the past, we were bringing it down between programs where socials are qualified on. Another program is that we expect to get on to another sales; we expect to generate, we just put it in one bucket 15 million, as indicated in the foot. We believe that's a conservative number, based among the opportunities that we're working on.
Speaker Change: 7.6 million estimated John non sorry non GE programs are quintal sales 15 million so we tried to do something a little different here in the past we're bringing it down between programs we're social qualified on another program is that that we expect to get on and other sales we expect to generate we just put it in one big one bucket 15 million as indicated the foot no we believe that's a conservative number based on all the opportunities that we're working on the total here you can see 108.6 million the contribution even the contribution from the incremental sales is 19.7 million that's based on a contribution rate I believe the 37.5% the additional 4 million we discussed that before that relates to our
Unnamed Speaker: The total here, you can see one on 8.6 million; the contribution, EBITDA contribution from the incremental sales is 19.7 million. That's based on a contribution rate, I believe, the 37.5 percent. The additional four million, we discussed that before, that relates to our base year, which is quite inefficient because we're operating well below efficiency of the new plant. And for, you know, many reasons, we discussed the past, which we won't go over here.
Speaker Change: Space Year, which is quite inefficient because we're operating well below efficiency of the new plant. And for many reasons, we discussed in the past, which we won't go over here. A slide 36, just a footnote to the slide we just read, so we won't go through those. And that concludes the presentation. Thanks for listening. Operator, we're happy to take questions at this time.
Unnamed Speaker: A slide 36, just a footnote to the slide, we just read. We'll go through those, and that concludes the presentation. Thanks for listening.
Unnamed Speaker: Operator, we're happy to take questions at this time. Great, thank you so much.
Unnamed Speaker: At this time, we'll be conducting a question-and-answer session. If you'd like to ask a question, please press star one under the telephone keypad. A confirmation, tell what indicate your line is in the yourself and the keypad. Q. Participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please. We'll do pull-for questions.
Speaker Change: Great, thank you so much. At this time we'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation told what indicate or why I'm in the question queue. You may press star 2 to remove yourself in the queue.
Speaker Change: For this been using speaker equipment, it may be necessary to pick up your antenna before pressing the star keys.
Unnamed Speaker: We're going to start one if you'd like to ask a question.
Nick Ripostella: First question here is from Nick Ripostella and our management. Please go ahead. Good afternoon, Brian. First, I just want to say I'm sharing purchase. I'm very appreciative of how sometimes double words currently trading and then put that in their press release that return cash to shareholders, which actually they destroyed value. So you've been very wise, and I'm appreciative of that. So, you know, a couple of orders ago, I think you were talking a little bit about automation, potentially, and a new facility. So I've been reading a lot and watching a lot about, you know, the use of robots and other automation, factory setting.
Speaker Change: First question here is from Nick Rupertsoll from NR Management, please go ahead.
Nick Rupertsoll: Good afternoon, Brian.
Nick Rupertsoll: First, I just want to say I'm sharing purchase. I'm very appreciative of how to do this if you are and only a purchase. I come across so many smaller companies that...
Nick Rupertsoll: Lay over pay for their stock, sometimes double where it's currently trading, and then put that in their press release that return cash to shareholders, which actually they destroyed value. So you've been very wise, and I'm appreciate all that. So...
Speaker Change: You know, a couple of quarters ago, I think you were talking a little bit about automation, potentially, in a new facility. So I've been reading a lot and watching a lot about the use of robots and other automation factors, I think so.
Brian Shore: So, can you just give me your perspective? Do you feel any point you'd be disadvantaged, disadvantaged by not having automation in the facilities? Or just, I'd like to understand your perspective on that. And the kudos to the workforce there, it just goes to failure. Some places have a great culture and don't need a union. Get out, you built a great organization in that regard. Thank you. Thank you very much for those comments. Nick, appreciate it. As far as automation is concerned, if you visited our facility, you would see that we're operating these lines continuously with, you know, usually a staff of about four people.
Speaker Change: Can you just give me your perspective, do you feel any point you'd be disadvantaged by not having automation in the facilities or just I'd like to understand your perspective on that. And who does to the workforce there, it just goes to show you.
Speaker Change: Some places have a great culture and don't need a union, get out, you built a great organization in that regard. Thank you.
Speaker Change: Thank you very much for those comments, Nick, appreciate it. As far as automation is concerned, if you visited our facility, you would see that we're operating these lines that fund continuously with usually a staff of about four people. So, you don't look at like an assembly line where you think, oh boy, a lot of these procedures and processes could be automated, they produce costs, they could include efficiency. One of the areas, so...
Brian Shore: So, you don't, you don't look at it like an assembly line, where you think, oh boy, a lot of these procedures, the processes could be automated; they reduced costs, maybe improve efficiency. One of the areas, so that doesn't mean we're not interested, but I think that the opportunities for a poor type operation are maybe not quite as much to thank for the bookwise as other kind of operations we've been. But, you know, we talked also about automation with respect to that project, that a manufacturing project, that's now morphed into a potential technology JV. And that's an area where automation would be front and center, I think, you know.
Speaker Change: That doesn't mean we're not interested, but I think that the opportunities for a park type operation are maybe not quite as much to bank for the buckwise as other kind of operations would be. But, you know, we talked also about automation with respect to that project, that manufacturing project that's now morphed into a potential technology, JV. And that's an area where automation would be front and center, I think. So, that project still has to...
Brian E. Shore: So, that project still has to be initiated. You know, it, like I said, it morphs, so it's a larger different project, but that project would involve quite a bit of automation, I believe.
Speaker Change: to be initiated, you know, at the extent of morphs, so it's a larger different kind of project, but that project would involve quite a bit of automation, I believe.
Brian Shore: Okay, thank you. Can I ask one more? Sure. Just, I know this is a difficult thing to say, but where would you be disappointed in terms of air buses? is a ramp up of deliveries next calendar year. Where would you be disappointed if it didn't reach whatever the number is? 52, you know, 54 or 50? Where would it disappoint you? I'm not sure. I understand your question. You're talking about intrusive or annual sales, or? No, the deliverable. Oh, eight or three of money per month to me? Monthly, right? Yeah, correct. Oh, okay. Yeah. Well, we're disappointed already.
Speaker Change: Okay, thank you. Can I ask one more?
Speaker Change: Sure.
Speaker Change: I know this is a difficult thing to say but where would you be disappointed in terms of airbuses?
Speaker Change: Say ramp up, I'm a deliveries next calendar year.
Speaker Change: Well, where would you be disappointed if it didn't reach whatever number is 62, you know, 54 or 50, what would it disappoint you?
Speaker Change: I'm not sure, I understand your question. You're talking about intrusive or annual sales.
Speaker Change: That's not good for the report. Oh, hey, it's really funny. Well, for months to be monthly, right? Yeah, correct. Okay. Yeah. Well, we're just going to ready. So maybe that's a hard question to answer. It's a supply chain. It's clearly, you know, become...
Brian E. Shore: So maybe that's a hard question to answer. The supply chain has clearly become more of a known issue. Probably zero long. My guess is that this year, maybe look at the 50 last year, 48. I've seen all kinds of different forecasts. I mean, obviously we'd like to be 75. So maybe that's not a proper answer. It would be nice if next year there are 55. I don't write helps, but, but if they're not, you know, well, we're already disappointed. So probably disappointed with any number of that's under 75. But the key thing is for us to hang in there and be ready for the ramp because, as far as we're concerned, there's no question: don't get to 75.
Speaker Change: More of a known issue probably they're all along. My guess is that this year maybe look at the 50 last year 48. I see no kind of different forecast. I mean obviously we'd like to be 75 so maybe that's not a proper answer. It would be nice if next year there are 55 I don't write helps but but if or not you know what we're already disappointed so probably disappointed with any number that's under 75.
Speaker Change: but to key thing is for us to hang in there and be ready for the ramp because as far as ' concerned there's no question don't get their seventy five just with all the orders i have it just doesn't make asense they wouldn't get to seventy five so the key thing for us to make sure we're ready for that and that's really important that means we need to ramp up the new facility that's why we' we're doing it now but ' also kind of suffering through the additional coursest burden of ramping up facility that is still operating in a very low rate
Brian Shore: Just with all the orders they have, it just doesn't make any sense. They wouldn't get to 75. So the key thing for us to make sure we're ready for that. And that's really important. That means we need to ramp up the new facility. That's why we're. We're doing that now, but we're also kind of suffering through the additional cost burden of ramping up the facility that is still operating at a very low rate.
Brian Shore: Okay. Thank you. Yes. And as you said before, this is a long-term proposition. And, you know, I really loved your comment about the stock price. You know, stupid. And certainly got pretty stupid at one point. So I appreciate it. Thank you so much, Brian. Thank you, Nick, for nice to hear from you.
Speaker Change: Okay, thank you. Yes, and as you've said before, this is a long-term proposition and, you know, I really loved your comment about the stock price, you know, stupid, and certainly got pretty stupid at one point. So I appreciate it. Thank you so much Brian.
Nick Rupertsoll: Take a neck for a nice two-way here from you.
Unnamed Speaker: Once again, if you'd like to ask a question, it is star one on your telephone keypad.
Brian Shore: Let's know for the questions that I could turn the floor back to Mr. Shore for any closing comments. Okay. Well, I thank you, our operator. I just want to say I'm sorry that it took so long. I think what we did was we tried to cover too much during this presentation. I think everything we covered was meaningful and information that many of you probably want to know about. But nevertheless, maybe we could put up more than we could choose to apologize for that. Thank you very much for listening. We hope you have a very good day.
Speaker Change: I have to know further questions like the turn of floor back to Mr. Shore for any closed
Unnamed Speaker: We'll talk to you soon. Goodbye.
Unnamed Speaker: This concludes today's teleconference. You may disconnect your lines at this time. Thank you again for your participation.