Air Industries Group (AMEX:AIRI) Q1 2023 Earnings Call Transcript

Peter Rettaliata: I think, one of the things that’s happening in the submarine business as they have become more advanced and more incredible actually is that subs are looking more like airplanes in terms of close tolerance and performance and less like battleships, less welding, more high-precision fits and requirements. So our hope is that there’s going to be more money in that.

Michael Recca: And we’ve looked at a number of companies in that business, both recently and years ago. And historically, they have significantly higher margins than we have experienced.

Howard Halpern: Okay. And once a contract – once awarded a contract and you supply and like you said, they produce one or two a year or so, it’s going to be highly sticky once you get that contract, right?

Michael Recca: Yes, very sticky because they are desperate for new suppliers. Electric boat had an advertisement the other day, they want to hire 10,000 people in Southeastern Connecticut. I’m not sure there are 10,000 people in Southeastern Connecticut. And so the – you talk about they’re increasing from two to three boats, big deal. That’s from $4 billion to $6 billion a year.

Lou Melluzzo: What we were told, Howard, is if you’re doing a work now, you’re going to do it again. They just – they don’t have the personnel to actually shop this out and then do what needs to be done. So your panic kind of guaranteed this work as soon as you’re in it.

Howard Halpern: Okay. And they will – I assume would be very helpful in gaining the – making sure the spot for you to produce product necessary?

Lou Melluzzo: Absolutely. So we’re finding that they’re very helpful.

Howard Halpern: Okay. Well, thanks, and keep up the good work.

Lou Melluzzo: Thank you, Howard. Thank you for the question.

Peter Rettaliata: Thank you.

Operator: Thank you. [Operator Instructions] There are no further questions at this time. I would like to turn the floor back over to Mr. Melluzzo for closing comments.

Lou Melluzzo: Thank you, Alicia. So with that, once again, thank you all for taking the time to be on the call today and for your interest in Air Industries Group. We look forward to updating you on the progress on our next call. Alicia, you may close the call.

Operator: All right. This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.