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RBC Bearings Inc (NASDAQ:ROLL)
Q4 2020 Earnings Call
May 20, 2020, 11:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by and welcome to the Q4 2020 RBC Bearings Earnings 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] Please be advised that today's conference is being recorded.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Bruce Hamilton of Alpha IR Groups. Thank you. Please go ahead, sir.

Bruce Hamilton -- Investor Relations, Alpha IR

Good morning and thank you for joining us for RBC Bearings Fiscal fourth quarter earnings conference call. With me on the call today are Dr. Michael J. Hartnett, Chairman, President and Chief Executive Officer and Daniel A. Bergeron, Vice President, Chief Financial Officer and Chief Operating Officer.

Before beginning today's call, let me remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected or implied due to a variety of factors. We refer you to RBC Bearings recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition.

These factors are also described in greater detail on the press release and on the Company's website. In addition, reconciliation between GAAP and non-GAAP financial information is included as part of the release and is available on the company's website.

Now I'll turn the call over to Dr. Hartnett.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Thank you, Brooks and good morning. Net sales for the fourth quarter of fiscal 2020 were $185.8 million versus $182.2 million for the same period last year, a 2% increase. In the fourth quarter of fiscal 2020 sales of industrial products represented 36% of our net sales and aerospace products 64% of our net sales. Gross margin for the quarter was $76.6 million or 41.2% of net sales, a record reflecting years of work on methods improvement, improvements in capitalization and mix management.

This compares to $73.0 million or 40.1% for the same period last year, a 5% increase overall. Operating income was $43 million, a 23.1% of net sales. EBITDA was $56.3 million, a 6.2% increase over last year. The quarter started as the best of times and finished with the plague of government interference in the economy and COVID uncertainty. We were able to execute a normal quarter from an operating perspective by taking extraordinary measures to protect the health and well-being of our employees by adopting strict procedures for environmental management, as published by the Center for Disease Control. As a result, we were able to accommodate the needs of our customers, operate our plants in a manner, where our employees knew they work in the zone of safety.

Sales for the industrial products were down 1.9% from last year the prime variance from last year, fell in the natural resources markets of mining and oil. Sales to industrial aftermarket were about the same as last year, down just less than 1% overall. Aerospace and defense markets continue to perform well for the first two months of the period and demand lessened in March. The fourth quarter organic net sales were up 4.3%. Aerospace sales were driven both -- by both OEM and defense, which accounted for one-third of the sales we classify in the Aerospace segment. Aero and defense OEM were up 2.1% from an organic basis. Defense OEM was up 7%. Important contributors were helicopters, aero engine space and missiles. The uncertainty around today's 737 MAX outlook continued, but now had taken second priority with challenges and industry uncertainty presented by the COVID epidemic.

The major airframe producers appear to gain their footing in May, providing strong correction and continued production rates by model to us. We are now reworking our production schedules to integrate those directions into a production and sales plan over the next several quarters.

Regarding our first quarter of fiscal 2021, we are expecting sales to be in the range of $150 million, $155 million. We have very substantial amount of order book and the issue opting occurs around customer credits and whether or not -- whether or not the customers are on time with their payments, which seems to be in the aerospace sector, somewhat of a -- somewhat of a problem right now.

I'll now turn the call over to Dan for a more detail on our financial performance.

Daniel A. Bergeron -- Director, Vice President, Chief Financial Officer, and Chief Operating Officer

Thanks, Mike.

SG&A for the fourth quarter of fiscal 2020 was $31 million compared to $29.5 million for the same period last year. The increase was mainly due to $0.8 million of additional incentive stock compensation and $0.8 million of additional personnel-related costs offset by $0.1 million of other savings. As a percentage of net sales, SG&A was 16.7% for the fourth quarter of fiscal 2020, compared to 16.2% for the same period last year. Other operating expense for the fourth quarter of fiscal 2020 was expense of $2.1 million compared to expense of $3.2 million for the same period last year. For the fourth quarter of fiscal 2020 other operating expense -- expenses were comprised mainly of $2.6 million of the amortization of intangible assets, $0.8 million of restructuring expense $0.1 million of other items, offset by $1.4 million gain on the sale of our building in Houston.

Other operating expenses for the same period last year consisted mainly of $2.3 million amortization of intangible assets and $0.9 million of restructuring expense. Operating income was $43.5 million for the fourth quarter of fiscal 2020 compared to operating income of $40.3 million for the same period in fiscal 2019 on an adjusted basis, operating income would have been $43 million for the fourth quarter of fiscal 2020, compared to an adjusted operating income of $41.2 million for the fourth quarter of fiscal 2019.

For the fourth quarter of fiscal 2020 company reported net income of $33.8 million compared to net income of $31.4 million for the same period last year on an adjusted basis, net income would have been $33.1 million for the fourth quarter of 2020 compared to an adjusted net income of $32.9 million for the same period last year. Diluted earnings per share was $1.35 per share for the fourth quarter of fiscal 2020 compared to $1.27 per share for the same period last year on an adjusted basis, diluted earnings per share for the fourth quarter of fiscal 2020 was $1.33 per share compared to an adjusted diluted EPS of $1.33 per share for the same period last year.

Turning to the cash flow, the company generated $44.4 million in cash from operating activities in the fourth quarter of fiscal 2020 compared to $29.5 million for the same period last year and $55.6 million -- $155.6 million in cash from operating activities for the full year fiscal 2020 compared to $108.5 million for the same period last year. Capital expenditures were $9.7 million in the fourth quarter of fiscal 2020 compared to $12.1 million for the same period last year.

On a 12-month basis capex was $37.3 million compared to $41.3 million for the same 12-month period last year. In the fourth quarter of fiscal 2020 the Company paid down $0.5 million to debt and for the 12-month period, we paid down $46.3 million of debt. Total debt as of March 28, 2020 was $23 million and cash on hand was $103.3 million.

I would now like to turn the call back to the operator for a Q&A session.

Questions and Answers:

Operator

Thank you. [Operator Instructions] Your first question comes from the line of Michael -- Steve Barger with KeyBanc Capital Markets.

Steve Barger -- KeyBanc Capital Markets -- Analyst

Hey, guys. Steve Barger here. Can you hear me?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, Steve. How are you doing?

Steve Barger -- KeyBanc Capital Markets -- Analyst

Hey good, thanks. Can we talk about the bridge to your 1Q 2021 guide by end market. Maybe just how much are you expecting aero down versus industrial?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

I think, they're probably -- they're probably, we haven't actually broken it out that way, Steve. But I would guess they're down about the same.

Steve Barger -- KeyBanc Capital Markets -- Analyst

So you're guiding the entire quarter down high -- mid to high-teen, you think that is appropriate way to model it for both sides of the business.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, yeah I think so. We have -- we -- it's a little -- it's a little difficult to sort that through right now in -- in terms of -- of the industrial products, given the short cycle nature of those products. So, but on the other hand, we have all sorts of additional programs that are facing in that are a little bit in some of which are a little bit unique and we haven't seen before, sort of offset setting some of that -- some of the softness we see in the short-cycle business. So we're thinking that's probably down less than 15%, but we're using kind of a 15% number as our guidance.

Steve Barger -- KeyBanc Capital Markets -- Analyst

Okay. And so just sticking on that for a minute, I think you said in your prepared comments, the aftermarket weaken 1% overall, what did that look like in the back half of March and how did April in the first part of May trend from an industrial distribution or the products that go through distribution on the industrial side?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

The -- the quarter was much stronger than I ever anticipated. Of course, you get to the end of March and you hear all the -- all of the horror stories about the country closing down and you wonder exactly what that is going to mean to demand, and we saw a really good demand through most -- through most of the quarter that demand is, it seems to be tailing off in this, in this last six weeks here, but it's still -- it's still decent and it's -- it's certainly within our guidance.

Steve Barger -- KeyBanc Capital Markets -- Analyst

And you said there is some unique programs that are coming in. Can you give a little more commentary around that?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, well, we're seeing our marine program is for submarines is really showing some good strength that's going to be up substantially this year. It's probably going to be up as much as 20% this year for us. Ground defense is showing strength, the whole defense sector, whether it's -- whether we classify it as industrial or aerospace is really strong. We have a new program, which in offshore wind, which we've booked, which will -- which is brand new to us. And -- and I'm not sure that we had any shipments in the fourth quarter of 2020, we might have had a minimal amount of that product in that fourth quarter, but that program phases in and in a nice way for the next few years and -- and we've picked up some -- some good submarine business in Europe that was a little bit of a surprise and -- and our semiconductor manufacturing business is strong. So you know the -- some of these -- some of these elements are recycling in exactly the right time for us.

Steve Barger -- KeyBanc Capital Markets -- Analyst

That's good color. Thank you. And I know you don't want to get too far ahead, but can we talked about the back half of your fiscal year there's tough comps in aero in 3Q and 4Q. So, just given what you know today about OE markets aftermarket and the backlog. How should we think about revenue cadence as the year progresses, back half lowered in the front half, is that got better, just kind of what are your high level thoughts?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

We're thinking the back half is going to be stronger than the, than the first half for certain and -- and to the, there is a lot of, there's a lot that has to happen in the world and I think people kind of understand, where the aircraft cycle is and what has to be done in that whole -- in that whole world, but the fact that Boeing raise that $25 billion has given them tremendous confidence in their -- in their build rates and -- and so they're giving us very strong direction with regard to what they want for product from us. We're encouraged by that and we're reworking our manufacturing schedules accordingly. If you look at -- if you look at Boeing's Investor web page, which I did this morning because I don't want to disclose anything that I shouldn't. So I'm staying pretty close to their webpage. They're planning on a 31 per month ship build of 737 MAXs. They are very confident that they will get to achieve certification by August and -- and we're confident with them. And so that gives us a lot of, a lot of direction with regard to how we should be running our plants and what our revenues are going to look like. So I think that back half of the year is going to be good.

Steve Barger -- KeyBanc Capital Markets -- Analyst

And you would make those same comments for the industrial side of the business as well?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Well the industrial side of the business, as long as I have been involved with this business, which unfortunately is 30 years now. Every time we've had a recession, the industrial side of the business has led us out and that short cycle industrial business has been the leader. And I don't expect this is going to be any change at all as these states open up and all these plants come back online and all these -- all the maintenance that has to be done and has been deferred, has to be -- has to be cared for where we expect to see a good strong industrial short cycle business.

Steve Barger -- KeyBanc Capital Markets -- Analyst

Got it. One more and I'll jump back in line. I read the delta reported they are retiring their 18, 777s early, just thinking about that. How does that impact your planning around the 777x?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Well, I look at the 777x in Boeing's plan is to build 5, 777 series with 1.5 being the x, per month going forward beginning every months that their plants are open. They have 350 planes on backlog. So somebody likes the ship. I can't say, I know exactly why? But somebody likes the ship and -- and they've got if they are rates. They've got five years of backlog. So I can't say, I know the complete, I am completely knowledgeable about the marketing aspects of the 777.

Steve Barger -- KeyBanc Capital Markets -- Analyst

Understood, thanks for the time.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah.

Operator

[Operator Instructions] Your next question comes from the line of Michael Ciarmoli with SunTrust.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Hey, good morning guys. Thanks for taking the questions here. Maybe if we could just stay on kind of that second-half 2021 forecast. I guess I'm just a little bit confused as we're seeing material rate reductions across commercial aerospace, including nearly all the Airbus platforms. It seems like most of the peers out there are calling for OE revenues to be down anywhere from 30% to 50%. And if I -- if I just run back of the envelope on your shipset content of rates, where they were and where they're going, which seem to imply about $100 million revenue headwind. When you think about where the A320 is going down to even if the 737 gets back to 31, it's still coming off 42, the 787 gets caught the A350. So, and that's not even accounting for any destocking in the supply chain. Can you -- can you just maybe reconcile how you're really confident in the stronger second half?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, I think we're saying a stronger second half than first half, we're not saying a stronger second half comps relative to last year. Let's make -- let's make sure that's clear, right?

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Okay. Okay. Okay.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

So we're saying the first half is going to be what it is, maybe more reflective of the first quarter than it was than anything else in the second half, will be a better second half, we expect a nice bounce in the industrial business, we expect the marine business to continue to strengthen, right now we're capacity constrained in some of our marine and helicopter businesses total is definitely capacity constrained. Boeing hasn't built a 737 ship in January, February, March, April or May. So, they haven't -- haven't produced anything in those and during those periods. So the fact that they're going to build volume to 31 ships per month effective January is means that some hardware is going to have to flow and -- and so we're encouraged -- we're encouraged by that. And right now that hardware for the 737 MAX is not flowing. So [Speech Overlap]

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Okay.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

In the first and second quarter we're not expecting to -- to flow much of their hardware at all.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Okay. And what about, do you guys have any visibility as to what's been in the supply chain, not so much on the MAX, but certainly on the A320 to 787 the A350. I mean it would seem like there is going to be some potential destocking that might exacerbate the rate reductions on those platforms. Do you guys have visibility there?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

All we can do there is make our best guess. We don't have -- we don't have great visibility, we are planning on running the plants at a destocking level for the next two quarters and -- and that's just the way it is.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Okay. And then what about on the aerospace aftermarket side, it seems like that's really been under much more pressure. Just given that the airlines are sort of at 80%, 90% reduced capacity if you have any visibility as to what happens to that piece of the business, the distribution side?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

I think that's going to be soft for a considerable period. I mean these carriers -- these carriers have to be buying their -- buying their ships and in order -- in order to generate the MRO requirements and they're just not. So we're not -- we're not expecting any great things from -- from that sector until -- until the -- they start selling seats on these planes.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Okay and then clarification, you said I think in your remarks on the aerospace side, you said the order -- order book look good, but payments haven't really been coming in. Can you sort of just elaborate on that on what you're seeing from I guess your customers regarding maybe just more detail around that comment?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Sure. Yeah. We have plenty of order book and the question is, who is it for? And how is he, how is he paying his bill? And -- and so some of these, some of these people that are in the subcontracting supply chain are struggling financially and so you don't want to get them too far -- too far removed from reality in terms of what they owe you and so you have to sort of lighten up on what you're willing to ship them until they -- until they clear their account. And so that's just added to a level of complexity that we don't normally have to deal with, but we're in a very good, very sound position to deal with things like that.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Okay. Okay and then just the last one and I'll jump back in the queue, you guys over the past, I guess in 12 months to 24 months brought on a lot of capacity, capabilities, qualification, played in, pigmentation treating is that as the volumes in aerospace go down as you were trying to alleviate a lot of those bottlenecks, how does that impact your margin profile. And I mean, gross margins were phenomenal in the quarter. But do you see that extra capacity being a drag on a go-forward basis?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Short answer is no. I can give you a long answer, unless you're not satisfied with no.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Yeah, I mean. Yeah, I would -- I would love to know how you're absorbing all that overhead. Do you have any additional color, that would be great?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yes, well, in RBC by and large we are a variable cost business. So we bring in materials and we add -- we add value to them and we ship them to the customer and we ship them to the customer in accordance to designs that we're uniquely qualified to execute. And so, if the volume goes down, our major expenses are materials in outside processing and that's typically half of our manufacturing costs. And the other half is burden labor, and the labor is burdened with overhead and then the largest component of that overhead are factory salaries and benefits and as you -- if you adjust your population in the plant. You adjust your cost structure and you ease up on your material input and as long as you have plenty of top line to work with everything will balance out for you again. And so that's basically how we run the business and we actually budget and visit the budgets for every plant, every month to make sure that we're -- that we're -- we're executing in accordance with -- with good -- good principles there. So -- so we don't the fact that we've added capacity in terms of floor space. A lot of the plants we own in capital equipment well, those were paid for out of -- out of our cash flow. So there is no -- there is no debt associated with those and the depreciation as a percentage of our sales is still something like 3% or 4%. It's small.

So that aspect of the overhead is a little tiny factor that actually it doesn't -- it doesn't really impact our -- impact our ability to -- to achieve our margin levels very much at all. So basically what we have to do is we have to figure out what -- at what rate that we want to run the plant? How much product do we want to make? How much cost input do we want to -- do we want to achieve to make that product? And given the fact that mixes now, we've been -- we've been executing this mix for years and years, there is not -- there is not much, there's not many secrets left in terms of what our margins are going to be.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Got it. You know that's helpful.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah. You might leave a little bit more cost in the plant in charges against margin, if you think you're -- you are into a short-term situation, where we do there is going to be growth in the second half of the year and you don't want to have to go back and reassemble the band. So on the other hand, if you don't see that happening for you then what you have to do is clear.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Got it. Perfect. Thanks guys. I'll jump back in the queue here.

Operator

Your next question comes from the line of Pete Skibitski with Alembic Global.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Hey, good morning guys. Echo Mike's comments on the great gross margin. So Mike, you've given first quarter revenue guidance and basically said that the second half will be better than the first half. So should we all expect basically that the second quarter revenue will be kind of the trough quarter for the year?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

We haven't -- we're still working our second quarter projections right now and -- and we're not, we're not expecting much and we're not -- we're not expecting a big surge in the second quarter, this whole thing has been, it has been a exercise and dead-reckoning. You know what dead-reckoning?

Peter Skibitski -- Alembic Global Advisors -- Analyst

Generally speaking, yes.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, well, that's when you get on a sailboat and you're sailing along in the fog, you don't know where the hell you are, but you know where you started from, and so you keep taking a compass heading and every 15 minutes you check your depth and you would just make an assumption on where you are in the map and after doing that for three or four hours, you don't know where the hell you are. So that's dead-reckoning, so I'd say after -- after the result of this COVID-19 we almost -- we almost have to run this company under a dead-reckoning proposition and take each quarter as it -- as it comes and -- and executed to the best of our ability and -- and we pretty much rebudgeted our entire year. And we understand exactly, where the years -- what the year is looking like, we're not ready to talk about that today and we've rebudgeted every quarter and now we are reassessing our mathematics around each one of those assumptions and taking the necessary actions in order to make -- make it all come out right. So I don't think the second quarter is -- I think the second quarter is going to be look more like the first quarter, then it's going to look like the fourth quarter.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Okay. Okay. Okay. Yeah, I just wasn't sure if that headwinds and commercial in the rate reductions and commercial were going to maybe I was thinking maybe they wouldn't impact our first quarter in much and we'd see it more and more of those headwinds in the second quarter. I guess that was my line of thinking. Okay and then just on margins, you spoke about that, but if we went back to the last cycle, I don't have the adjusted margins back that far, but the GAAP margins came down 6 or 7 points during the last cycle, and I would think the rate reductions are steeper this time around on the commercial side. So are you saying you think margins can stay flat this year, even in a down environment or maybe you're expecting some modest degradation. How are you thinking about that?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, I'd say modest degradation. I don't -- I don't know what happened in the last cycle, and I don't really want to think about it.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Fair enough.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

You're right, it's, this is completely different cycle than the last cycle, and it's a lot of it is dependent upon what the government's going to do next and never know what the hell they're going to do. So I think we're restructuring things, so that the margins are going to be the record level that they were in the fourth quarter. They can get back there over time, and we're just going to, we're just going to give it a little time and see how this -- how this world develops. And I think the margins will be reasonable. And I think our cost structure is under control. I think our understanding of what our revenues look like is definitely under control and I don't think anybody is going to be disappointed in the results.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Yeah, you expect to be free cash flow positive, I guess, than net-net?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah. Definitely.

Daniel A. Bergeron -- Director, Vice President, Chief Financial Officer, and Chief Operating Officer

Definitely.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Yeah, OK. Last question from me, I don't know how much you can say about this, but on the last call you mentioned some gains on some missile programs that one of your division secured. I think it was related to this different relationship between the U.S. and Turkey, kind of the fallout from that. Can you maybe talk about, you know the size of that opportunity that business that you gained? And maybe which unit that came through?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah, well, actually, it's probably in the $8 million to $10 million per year range and -- and it, it's -- it's doing a nice, it's doing nicely to fill in some of the, some of the loss in the -- in one of our commercial aerospace divisions.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Okay. Yeah. That's all incremental for fiscal 2021 basically.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Well, it's substituting rather than making parts that we plan to make for one of the ships we'll be making this other -- this other material.

Peter Skibitski -- Alembic Global Advisors -- Analyst

Okay. Okay, great. Thank you guys.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah.

Operator

Your next question is a follow-up question from the line of Michael Ciarmoli with SunTrust.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Hey guys, thanks for taking the follow-up just wanted to get any thoughts, I mean, obviously valuations have come in a bit here. Have you given any more thought to capital deployment M&A, certainly the balance sheet looks -- looks pretty solid. But how are you thinking about capital deployment and maybe more specifically M&A?

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Well, I mean, we've -- we continue to -- we continue to look for the right -- for the right partner and right acquisition candidates that would fit what we do and some of them fit nicely. I think -- I think given, given the -- the whole situation that the world is in right now. I think our appetite to do something large is -- is has lessened until we understand what the -- what the prospects for these businesses are. But there are some small, there are some small intermediate sized businesses that it looked like good candidates.

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Got it, thanks guys.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Yeah.

Operator

There are no further questions at this time, I would turn the call back over to management for any closing remarks.

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Well, I think that concludes our fourth quarter and fiscal 2020 conference call. We appreciate everybody participating today and we'll talk to you again in July. Good day.

Operator

[Operator Closing Remarks]

Duration: 36 minutes

Call participants:

Bruce Hamilton -- Investor Relations, Alpha IR

Michael J. Hartnett -- Chairman, President and Chief Executive Officer

Daniel A. Bergeron -- Director, Vice President, Chief Financial Officer, and Chief Operating Officer

Steve Barger -- KeyBanc Capital Markets -- Analyst

Michael Ciarmoli -- SunTrust Robinson Humphrey Capital Markets -- Analyst

Peter Skibitski -- Alembic Global Advisors -- Analyst

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