Kaman Corporation (NYSE:KAMN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 11, 2020 • 08:30 am ET

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Kaman Corporation (NYSE:KAMN) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kaman Corporation Q2 2020 Conference Call. At this time all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to transfer this conference call to Jamie Coogan. You may begin.

Executive
James G. Coogan

Good morning. I'd like to welcome everyone to Kaman's Second Quarter 2020 Earnings Call. Conducting the call today are Neal Keating, Chairman, President and Chief Executive Officer; and Rob Starr, Executive Vice President and Chief Financial Officer.

Before we begin, I'd like to note that some of the information discussed during today's call will consist of forward-looking statements setting forth our current expectations with respect to the future of our business, the economy and other future events. These include projections of revenue, earnings and other financial items, statements on plans and objectives of the company or its management, statements of future economic performance and assumptions underlying these statements regarding the company and its business. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors, the most important of which are described in the company's latest filings with the Securities and Exchange Commission, including the company's second quarter 2020 results included on Form 10-Q and the current report on Form 8-K filed yesterday evening together with our earnings release.

We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the earnings release filed with yesterday's 8-K.

Finally, we posted an earnings call supplement to our website that we will reference in this call and is designed to provide additional context on our financial performance, key events for the period, additional information on the makeup of our sales and cost savings actions and steps we have taken as a result of the COVID-19 outbreak. You can find this presentation at www.kaman.com/investors/presentations.

With that, I'll turn the call over to Neal Keating.

Executive
Neal J. Keating

Thank you, Jamie. Good morning, everyone, and thank you for joining our second quarter 2020 earnings call. The past three months continued to be difficult as the global community response to the unprecedented COVID-19 pandemic. And today, our focus remains on ensuring the safety of our workforce while continuing to deliver critical products to our customers. I am pleased to report that our team acted decisively and responded well to these challenges.

In the second quarter, our sales of $177.9 million were up 1.8% compared to the prior year, driven by the contribution of Bal Seal Engineering, partially offset by lower volume related to the impact of COVID-19 on a number of our end markets. As expected, our defense markets remain strong, led by our Joint Programmable Fuze program, while sales in our commercial, business and general aviation and medical end markets were down across the board. For comparative purposes, it's important to note that sales in the