Docoh
Loading...

PWFL PowerFleet

Participants
Chris Wolfe Chief Executive Officer
Ned Mavrommatis Chief Financial Officer
Mike Walkley Canaccord Genuity
Jaeson Schmidt Lake Street Advisors
Scott Searle ROTH Capital Partners
Gary Prestopino Barrington Research
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good morning. Welcome to PowerFleet's Fourth Quarter and Full Year 2020 Conference Call.

Joining us for today's presentation is the company's CEO, Chris Wolfe and CFO, Ned Mavrommatis.

Following their remarks, we will open the call for questions.

Before we begin the call, I would like to provide PowerFleet's Safe Harbor statement that includes cautions regarding forward-looking statements made during this call.

will future statements financial there events, regarding call, PowerFleet's including performance. the be made forward-looking future During All statements future other offering other business for include forward-looking financial any growth, than considered anticipated industry strategy, present and regarding position, the expectations statements. company's trends historical competitive the demand position, are plans regarding of for and for results operations, company's future statements anticipated operation, facts, opportunities which product company's for to, statements beyond. XXXX but expectations not company's Such and limited the include, financial are All the such the imply presence of many of risks, contingencies, forward-looking statements uncertainties, which company's and are beyond control. The in may differ any actual materially assumed performance statement. or projected company's or forward-looking results, from achievements those and to materially the the actual that for among competitive business company's cause products Factors and economic position. emergence cash could and conditions, differ technologies, could of new services, demand others, results include, factors, company's overall SEC filings, duty to The undertake to any any company circumstances. or update events statements not does future to forward-looking intend reflect

like would in the I replay this website the section of be Relations at for to company's will that Finally, available Investor made remind everyone www.powerfleet.com. call

Now, Wolfe. please I'd to call the Sir, proceed. Mr. CEO, like turn PowerFleet's to Chris over

Chris Wolfe

Alice. hope well unprecedented for thank everyone, morning, our call. and joining times. I you, and during thank everyone Hey, healthy Good staying very is you doing these

million improvement revenue, deliver and customer increase meaningful with to we a high top solid revenues, -- demonstrate year sequential line growth, a the $X.X a generation unpredictable backlog profitable perspective, from us measures, a our model cash of in gross challenging driving bottom entered year release the optimization you a operating and against our new globally. with line. the improving very of focus our which for strategic we services earnings recurring to with our optimizations on a cost a and and the financial enable margins sales As solid several for pipeline. saw business finished installations helped X% wins strong fourth our XXXX. sequential continued an quarter finish together ongoing in was PowerFleet's From robust benefits execution from in to prospect increase companies initiatives, along produce These our margin X% XXXX and robust metrics leverage

During and QX, wins we more and notable the McGuire Group, secured These a Tubular XXX,XXX at wins, a QX. announced Panhandle totaled recently, contributed of monthly basic number to Nucor end including our of units, which Transportation. record subscription Transportation

dive results our turn I to and CFO, fourth XXXX. to discuss Ned? Before full quarter year Mavrommatis into the I'll business our of call outlook, Ned over our segments for the and

Ned Mavrommatis

morning, Chris, you, everyone. and Thank good

year the recurring XXXX or prior compares quarter results in QX million for of $XX.X full million High quarter revenue full QX or of revenue This year XXXX fourth XXXX. increased in quarter, of year-over-year revenue million total or and major total to revenue in from our reduction The for in million from to Turning from last XXXX of the the $XX.X $XX.X XX% revenue. last million prior last QX year. revenue shipment in and $XX.X total from of $XX.X the impact product XX% margin, decrease million XXXX. million the of from to Avis and XX% in million to fourth year. in in decreased Revenue the the increased to but COVID-XX. Revenue to was of $XX.X was for $XXX.X quarter and services the related of QX $XX.X for our

revenue, XX% or revenue, XX% compared XXXX. total year future which revenue of revenue in in of year. or to of $XX.X total XX% $XX.X the or or of quarter and our the prior million last $XX.X revenue total This million XXXX, Product of service $XX.X million total $XX.X drives revenue million revenue was was or For QX revenue. to services of full XX% XX% total million in compares

full or in $XX.X of of to or increased quarter or Gross in compared total revenue, of of total or million year. revenue XX% of was in XX% million revenue last profit revenue from XX% the the QX total product total $XX.X million $XX.X $XX.X revenue total XX% year For million XXXX. or XX% XXXX, million $XX.X revenue of prior to of and

or profit of XX% gross or revenue million total For $XX.X total increased to the of revenue full million from XX% year XXXX. XXXX, $XX in

were $XX.X expenses million prior from XXXX $XX.X turning quarter was the in million, QX from for XXXX. operating $XX.X fourth of our but Now in was the from up quarter, down QX prior expenses. up of million the XX% to Total The quarter. X%

full in the were year, $XX.X $XX.X For million compared operating XXXX. to expenses million

compares $X.XX year. currency our the our company's to $X.X fourth common Israeli XXXX the diluted attributable of XXXX per basic quarter to debt per share of loss the net in included $X Net foreign currency subsidiary. of translation $X.XX GAAP quarter at loss fourth of million GAAP diluted and outstanding expense totaled basic in $X.XX or QX in $X.X to in million or and Turning for net related the million profitability share net GAAP This basic of and loss local measures. quarter a to per and noncash of last million in diluted stockholders loss prior or share. $X.X

$X translation $XX $X.XX basic currency GAAP related the year to be totaled this million local not XXXX subsidiary. income the to share, net common that Israeli introduced loss $XX.X to in stockholders This and diluted improvement or per per to share diluted as Due to basic in or of in company's million last $X.XX compared non-GAAP GAAP of attributable $X.XX XXXX, of to results. attributable at or basic $XXX,XXX our in well for noncash we and loss share $X.XX expense QX loss as diluted share. additional gains basic of Net per and and for and XXXX indicative per includes foreign income operating of losses currency year. GAAP compared For diluted non-GAAP full Non-GAAP for expense net our or $X.X $X.XX stockholders net loss core net results, million supplement million may of net was to was outstanding an debt XXXX. QX noncash

and For loss the stockholders stockholders improvement EBITDA was totaled diluted the non-GAAP of full significant share and basic per share, last total million year. year of million XXXX, or which the XXXX XX% and EBITDA QX income per million non-GAAP net $X.X for prior QX to $X.X to or basic million diluted to quarter $X.X EBITDA per a million $X.X common $X.XX in totaled in compared net revenue, of attributable XXXX. in common $X.X adjusted to adjusted of attributable or stock Adjusted $X.XX of compared $X.XX

For $X.X EBITDA year XXXX, million EBITDA $X.X the full XXXX. of of compared to adjusted totaled in adjusted million

with public Our quarter closed end net million and equivalents position that offering at proceeds remained cash strong February liquidity cash XX, of capital an million. working we $XX.X and approximately in million. generated underwritten $XX.X On of $XX

our million million today, year a growth execute is giving which position our of to of that encouraged $X.X ample in the and report improvement I'm significant resources generated XXXX runway full us As to will and million, believe $X.X strategy. the diversified help our we operations from management services That $XX high from this used margin for to in cash prudent Chris? uncertain recurring us approach and cash in summary, customer period we base, In that my prepared cash ensure revenue same we remarks. in successfully predictable, really times. operations, navigate XXXX. concludes exceeds

Chris Wolfe

Ned. thanks, Hey,

unit over world. from expanding segment, Our white which improving and traction across financial indirect in network. forklift continued handling the QX our channels, performance execution in label include we Along sales U.S. volume reflects OEM equipment, forklifts to increased our Jungheinrich, our channels, that includes material our our U.S. strategic sales and our which line, the continue levels, building and our third our including partner, activity direct see to product we improving continue partner new In global team's Industrial largest strategic manufacturer and see partner operational momentum. OEM team sales orders sales

to Motor manufacturing with traction. Our partnership gain Toyota continues

quarter, plant Also a also installing first our they And plant center this, in our the Mexico. working top signed distribution with a in the Toyota deployed QX, we During secured e-commerce Mississippi. partner, world's retailer. largest of we for Solutions, and expanded new in by on Attached brick-and-mortar

and the including We in Minute other period, wins notable Audi. deployments Toyota Motors, Coca-Cola also Maid, had several Mazda Daimler and

and our long our in terms upgrade aggressively our next-generation of customers revenue initiatives our Industrial legacy our In a reoccurring them to with to solutions with older after working priorities and from we’ve transition in to model. Walgreens, successful platforms standing XXXX, been segment

migrations major base half and to over customer of see also several sales SaaS customers reoccurring in require value transition refrigerated in of a unit in remarks, XXX shipping as product busy our telemetry opening cloud a noting Logistics platform our segment. these Transportation to or LV-XXX the It mentioned was platform. nearly today. Software major in based potential, no our that expect customers units a is as all during a we year. will legacy fleet pay And quarter QX. fees these these high XX,XXX This worth this second We Service both migration our represents refresh commence the great my Group, begin unit little and an Panhandle equally telemetry It secured win reefer I with

which X,XXX unit, included solar of supercap We LV-XXX also system. container freight the also platform, our delivery announced and started camera telemetry previously LV-XXX

an for previously Additionally X,XXX the already about trailer announced, and and these and started a in major we've reefer shipping chain in southeast units. order not QX, supermarket placed platforms

front, and with revenue, the optimize R&D customers asset of help safety, the with requirements. regulatory comply products to family a to sensing On has utilization critical PowerFleet ensure designed of activity our maximize weight

single detection, mounted sensing, of dismounted but chassis. only off WS on events also such provides not is focuses and telemetry containers telemetry which on data, Our device as platform for LV-XXX and standing weight a WS, that provides accurate asset weight detection

the further sensor up LV-XXX when WS container LV-XXX to loaded a can the dismounted mounted and with weight step containers, on on but paired not. also and only include Our axle tell on or focuses not weight measurement is the information if goes

container in bottlenecks port are with Angeles, Given completed major weight were Intermodal at a our point. at We recently capabilities Los major initiative fixing the squarely of industry a sensing these the milestone aimed Management. new American experienced pain

telemetry the will to multimode release started overall platforms sensors, this and half X,XXX WS on being we LV-XXX an Our a work for Management of built are matching chassis products major potential. weight recently plan two first our our Mexico order These broaden led on installed In axle new has American which quarter. portfolio, increase currently new platforms, in for to being placing where market Intermodal LV-XXX customer. we XXXX, initial trials field

much COVID. increased market Rental first their to the had and successful, has at market in share the fleet and Israeli the Honda will rental Budget, of achieve right vaccination. due game can -- can car share R&D wins Additionally, industry car push legal our increased exceeded very Pointer sales price closing XXXX are population, we at of given Pointer Rental. of we with point market weight the privacy if Car premium an Internationally, is Car if its Pery a as our of workforce operations levels, continue feat changer. nearing see Volvo the for axle, with XXXX on has impressive Eldan several vaccinations be times and as XX% wins economy at our the and in efforts Israel to which Israel which, well

the our country Adom, pre-hospital to playing national in response the installations responsible and COVID Magen Israel's of emergency Israel's services. vaccinations. critical and wireless state scheduling in of role continue the a medical blood sampling, EMS MDA. throughout is M-D-A, for defibrillators MDA crisis, also with is testing, central MDA managing including organization We David care

in the MDA, are Pointer our Maccabi production. projects addition and food, temperature And a honey won tender momentum cannabis, and major grocery pharma, In to Health. IoT with Israel gaining

of with potential terms our targeting X,XXX our other XX,XXX upside an units. Argentina QX a of units In Edenred in Mexico, Pointer signed initial international operations geographies, possible of starting in deployment

cool. of Carvana units Mexico annually operation at having out with for an the XX,XXX X,XXX the which Pointer and is This to Insurance, Our very and units. additional potential KAVAK, KAVAK AXA Mexico; AXA having potential the for just roll continued is

X,XXX Our construction units and MX Northern platforms in a in provide selected we equipment seeing just is launching has confirmed India for traction project minimum company construction platforms, working team the in major IoT are by mobility reseller segment, QX. been we recently signed Cat unit annually, a This equipment agreement segment. with under M Services, our interest Vehicle significant Consulting we was In we've -- a our shipping growing been that working interest which with Cat and and started for newer are Europe. to Cellocator X,XXX Tata and

win, addition focus for construction equipment vehicles X interaction field within an seen in on car we X to with and service continues enhance large offerings smaller and fractional as These rental public a car midterm to touchless sharing three our fleets solution to that this alternative and commercial to rental prospects. due ownership In rental fleets, to trials currently and are an with and car customers personal self-service. fleets used increase Class in PowerFleet to vehicle for the as as demand COVID well transportation delivery ownership. have

move have very mobility for van, that platforms to the ahead end software steadily market bolster our our As our quickly and cold diligently geographically, grow We a we chain on America software. sheet now to are can segments expand capability XXXX, the North that and as balance product, demand strong position potential and look we our acquisitions gives and analytics improving us dry container globally. business

PowerFleet As We enhanced the balance really and scale, tenders. industrial open to capture factors for dollar global effectively increasing appropriate global the an questions. these countries strong growing footprint believe call economy of ready global leverage the will PowerFleet your reopen, to and share provide international instructions. recovers compete is up we market. that, expansive to sheet our the with And enable well-positioned and please win to multibillion Operator, are IoT

Operator

Walkley comes proceed. Genuity. with question first Please Our instructions] Mike [Operator from Canaccord

Mike Walkley

and the are on call Chris everyone's I well. and hope families you. Great. staying healthy you and Thank Ned,

Chris Wolfe

Thanks, Mike.

Mike Walkley

reopen? improving any economies Congrats -- solid see if to Chris, double-digit on on of some again the And and Just XXXX you update margin can EBITDA end XXXX, large the on just you discuss adjusted business entering another of continue maybe you how year. those were backlog the areas to opportunities chasing? throughout strength

Chris Wolfe

Yes. Thanks, Mike.

the -- with -- previously win. I seeing seen sales, we the Ryder you've actually are but even traction announced We XXXX, into new coming logistics

XX was it in only year. think Ryder last at like go. We to June there's six and of I locations installed XXXX,

and Kautex, on So And there customer with a is industrial side. one in a the or back Tubular, we also come that upside almost last come encouraging. side -- in see which there's just fairly industrial hit year was the on The we're scale, it's more alone. fact we Nucor you Xx just and XXXX, strong probably the hardest can announced phenomenally seeing that back

we we On on. want still customers, going of not mentioned some old kind United again, Company. are my Ford the large prospects, of those. But wins pushing I Postal that's Service, some over that now. do right to States We migrating have are for very Motor progress I'm going quite those I the don't get because QX like -- skis. up

kind definitely happening break will of those when which us deploy but think those we half, second this start second I you seeing the we're industrial when would seeing locations side. start hope year, on you in start that's the before half, the free

going are and culmination we we the logistics into those the have trials On on and QX still here field expect in QX. side,

Mike Walkley

you helpful. barring now the or quarter, off XX,XXX to Great. customers still of then due you get industries just Maybe where is behind to see talk and to worse? net strong And you're getting any seeing strength? about that just steady XXX,XXX. any should things That's impacted turning some another on And are you having just you growth can virus add

Chris Wolfe

-- virus seeing we're stabilized really are just worse, any goodness, that stabilization. in we barring thank and QX, Yes, getting seeing it then

people And at seeing the by that as units for issues net which of not financial getting way, add. actually just in us. turn good It's XX,XXX time the kind need to the mass. straits off are any across as that in actually to we're major this they We customer is far board,

breadth company early of I those continued on, think the or was just or situations on customers if think now anyone weather of who much just story better. And the making kind two followed our I our us always breaking quarter. helps it one

to are the quarter, in not beholden one across we particular really it's So a board. been really again, customer but

Mike Walkley

Ned, backlog gross pass I the then is or But I'll March mix quarter-to-quarter on already for hardware. XXXX kind And fluctuate of into give growth a you converted margin on and quarter. a been on. look me for sub for based that it some the visibility into had sales of question product margin, those or than turned Most as kind bit know subs XX% can were higher Last hardware that on of that your good at expected. Great. you XXXX? gross to

Ned Mavrommatis

Sure, Mike. Yes.

the that question sell of your absolutely. with long-term hardware Every we piece is service The first comes part contracts. of

high product growing into visibility service revenue. So the gives it's more us today revenue

On the primarily mix. product margins, it's

that generate products have we then XX% XX%. that gross generate have We products And margin.

So really it's mix. the

feel I think comfortable on and XX% going forward. side, between we the product XX% very

Mike Walkley

Thanks best successful taking a and 'XX. questions for Great. my wishes for

Chris Wolfe

Thanks, Mike.

Ned Mavrommatis

Thanks, Mike.

Operator

with Our Schmidt next Street. Jaeson Lake question Please comes from proceed.

Jaeson Schmidt

my Thanks guys. questions. Hey, for taking

if some what of standpoint curious first here you saw comment last an momentum of January pattern here Just late and you've order two quarter? if the has the the in seen February, from could in on continued months you year

Chris Wolfe

Yes. not especially they’ve come which markets last indirect in of business and I activity month points which is like overall mean, a again, the picking down. seen biggest it economy, we the in of at seen we've are haven't the slow touch and channels lot is a good, economy, if because especially anything, up sales, -- we in. lot that U.S. our the they are like we of -- in more the again, companies, our global that A But quarter. matter of in done typically, fact,

call. I pre-COVID. in sales probably last the high. attend it's been has the probably pipeline strongest years, almost in calls again, been So two even activity myself the And I've level every

Jaeson Schmidt

update give an then the you're you Okay. where just on could other company? car And That's at rental us with helpful.

Chris Wolfe

that Conversations continue, that's recently of started a an fact, and matter third-party in just RFP there is area.

that's major. car rental another company So also

that are well. we in as participating RFP again, So

So they and conversations -- we to -- need a really just continue them large they because front trial be slow what I program, interest we going to proposal do going there, to rental just call are keep company, a to we still level there. of up the on it's can when Again, with that field a I scale car them we doing. when right and And them now think but right, major it's they and updated to what is in want have do that. do

Jaeson Schmidt

Okay. one last And me, jump think how queue. I'll should we the OpEx ramping and for back into about in Ned, XXXX? here

Ned Mavrommatis

marketing. We and are going bit start little investing a in sales to slightly more

As see increase beginning we Chris a and mentioned, the business. doing activity significant are to people in

So a investing we again, conscious. very to start going are but bit,

is profitable goal to Our have growth.

Jaeson Schmidt

a guys. Thanks lot, Okay.

Chris Wolfe

Thanks, Jaeson.

Operator

next Scott comes [Operator question instructions] Searle with Our Please Capital. from ROTH proceed.

Scott Searle

the only on Good is outs I gross seeing not my the seen How with supply any gross lot your Hey, taking morning. know for you that ship the throughout that mix, to in any impacting you on just front, Hey. your Thanks is issues push vendors. and that follow-up front? on service seeing volatility front? industry quarter-to-quarter Are that or chains depending are other a component issues margin to margins, there questions. ability but on we've Ned, of but

Ned Mavrommatis

XX% at was When In gross before, QX, gross issues. I'll look about and I service margins comfortable at not primarily looking growing. mix. the gross mentioned just It product at being can consistent by and the forward. to anywhere the margins, were little chain. feel little And XX% a product as it supply margins Chris The bit XX%. impacted we talk our you going all the they're from at gross chain a very then supply talk about margin, just

not supply industry. forward, look is only whole issue the for chain us, we As an the but

So Chris, to take want maybe you that?

Chris Wolfe

are of very been middle have don't. to and a that they impacted couple Yes. we yet, There's actually be specific, -- the us sure of in on shortages like, of, making that have not components, there's as necessarily module going

for that by So just to for to the have come some about our ample for probably surge, supply in trials field we orders, that back up pulling also of make question see getting you other sure go to will large and -- culmination. inventory

modules long the times. supercaps, For lead and

that build-out advantage months, right times in don't have we're what just subcomponents X in sure remediate do do pull that we product we trying to so have getting take concerning, can the So risk of full to can now. and like lead It's make that's pulling it into upside ample We is parts of some of that supply. we the and and long modules right? by any the But the early. are

Scott Searle

Okay.

Chris Wolfe

So you plan have to ahead.

Scott Searle

States out And on Budget United ahead. issue. or sounds to clarification your It for is that moving Got Pointer just And Service. is Budget, through just is follow-up just on to earlier you. to a in Budget Postal the on that some like now globally? now specifically comments follow-up comment Israel expanding with It's timing

Chris Wolfe

Yes, Avis Budget way, Budget Group -- is I mean, by Avis. of part the

of U.S., took the Budget Avis licensee the XXX,XXX So is of Group. units some be in a they Budget portfolio. or This the could in

every us again, allows the sell Avis quite most few, international there's our contract licensees, countries. a -- actually to the in like So of which to with

we've So as approached well Mexico, et cetera. like been countries other by had

product win the products, it's one go for our they approaching still that and And using we got directly from so a or the with a of that but Pointer win get a different great not of product them go with Avis Pointer a our licensee. was they portfolio we or are -- whether products with like acquisition,

Scott Searle

Got you. Postal And Service? U.S.

Chris Wolfe

Yes.

on. there's you're too want far going to ahead -- planning on think but great I and going I conversations don't get there great yet,

we and will So a -- that start we seeing months. announcement we couple when deploying once -- can of at put start basically begin out will hope when you an facilities, we

Scott Searle

from also to including to of if some value, about these could, sensor-driven mix some competitive business just you're keeps weight revenue wondering win into kind opportunities, more against lastly, I'm fighting kind the chain you're I'm up and a moving given wondering you different how higher-value moving at as if on shifting, directions, start Thanks. you're or as and And you're of initiatives. the list And of recurring I vendors all. you're of short Great. weight lot. changing where the ARPU an of coming cold list thinking axle standpoint other is

Chris Wolfe

Okay.

And in like that's on we velocity, general, there gets and address as are are weight with don't actually our our issue location in imaging. freight Los more customers on mentioned axle. container to trucks their it of the on how can very Those help products issue camera we of for freight value that there, of a the certain shift when containers. have learning somewhat offer, yards trailers -- you can well. port choke are really loaded, specifically, we So to weight camera. how high the if type or is like axle can visibility, where tied first actually actually tell like in out I which We machine know unload and been out back increase chassis Angeles industry and the to That's that chassis trying knowing the are we whole can and tell our We transit. time proper the a in People the at or by again, do and or there's just the now -- trailers point it's are you getting loaded help points you to empty. faster versus tell of trailer

sale solution a of more is point price our now. that, with So

hardware into to analytics just and but a we hardware our problem, go typically because sale a do it computing, edge include we to that what does solve sell includes software. component solution is in there's a and it our also So a

of by higher than a typically But, actual you're the to month. be is be a So standard -- way, more and the to added and for the more our typically At product weight the our question. question, vertical can And $X tracking on so on getting data lastly, get sensor get we or the And data. dollar. ARPU, time, back the then same to through could a like ARPU the $X extra to is yes, And added as an send this the great camera, we pipeline. the move now same on data, for data $X kind the $X freight solution. lower we the depends be chain of the rates, in actually right going would chassis it benefit extra that's cold you XG, with

projects systems with integrators. competing now are on We

with So are They're Consulting also not by integrators. partnering way, largest, mentioned systems the the Services. in the I second. believe, world, the the now we today. largest the Tata If I

So is up for us the to with actually Tata for phenomenal just opportunity company. a partner

can like provider and in this Intermodal or I IoT is our which partner space IoT Service we did innovatively we’ve go technology done a stronger And with can But be nimble. with it think with being American which an differentiator. do either United Management, ourselves, States our partner So that wins the Avis, after ago, nimble up way. the the again, I think Postal we capability did we we is with like years to

for So we that, fix problem is, it. can in, remunerated to the for listen naturally and what go the problem, get

Scott Searle

Great. you. Thank

Chris Wolfe

Okay. Thanks.

Operator

from question proceed. Please Barrington final is with Our Research. Prestopino Gary

Gary Prestopino

to clarify. want just I everyone. morning, Good Hey.

XXX,XXX had the of units subscriber at the year? air You end on

Chris Wolfe

Yes.

Gary Prestopino

-- year, you Okay. relative directionally? mean idea to Chris, give could I maybe what And end an overall? what the then, of the your us growth has backlog in last been

Chris Wolfe

Israel our vehicle I years programs mentioned was It across on broader was in it's all Israel with -- going in right operation. there not and through board. our OEMs ago, -- SVR. the Like now, been I sales any IoT mean I doing Israel think in more earlier, X

Now Israel the of out XX% is of revenue just all projects. IoT

X I years. So that's mean normal

in business way, we which current customers it's The the industrial when initiative. you a a we unit again, trend -- segment, very steady of and focused been the traction shipping will And time, logistics refresh the X,XXX is a that's And has the lumpiest center. uptake. sales don't announce fleet nice, right? that center, -- at the we we seeing good And in our and side logistics the the So seeing in like And the that McGuire. even Panhandle continuing, because see always are all facility at the usually actually Group, of cost by progression it's invested their CapEx container same a is the necessarily. warehouse on side. But -- you're part cost heavily

things going economy picking typically. first a So be because hit That's that nice that when seeing and being cost center, But up, last to you're down, activity what again, hit, thing not add so of more year. goes the to business us to cost going built. we're that's the

to Toyota hold So put is our recover, -- end. at manufacturing. at manufacturing Toyota mentioned, segment I like in Everything all on the the starting industrial was right side

back So come to starting is awesome. which now see to life, we're that

Gary Prestopino

Okay, lastly, of provide XXXX purposes? us quarters great. components and XXXX the of the Ned, income for modeling can for And then with net all you for non-GAAP

Ned Mavrommatis

can. I to release, it's table, there's a in GAAP. GAAP the Gary, Sure, that press has the Obviously, non

over So it I conference. read the don't want to

Gary Prestopino

the at up -- looking full all release, for all I'm release here. is seeing XXXX the December breakdown QX year, I'm the press press the QX, and it right, a But popped of have components. QX, I'm don't for and No, and individual Maybe for there I and by quarter year. XXXX

Ned Mavrommatis

okay. point will that if I after call out the that's Yes, to and you

Gary Prestopino

separate sorry. I'm screens two on I'm Okay. this looking here. at

So look at I'll Thank you. take right, all it. a

Ned Mavrommatis

Thanks. Okay.

Chris Wolfe

Thanks, Gary.

Operator

of end Wolfe for reached session, turn I remarks. have Chris call the the We and now to the over closing question-and-answer will

Chris Wolfe

Thank you and thank forward and support our Please for and diligent their their I'd you stay for trust customers like to investors our products joining results for in and services putting of employees great our we speaking vision. again look Thank today. and healthy, our you. soon. to for their with our efforts us

Operator

Thank presentation. you for for today’s joining us

You may now disconnect.