The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Tom Hayes - CL King & Associates - Analyst
: Hey, good morning, Paul, thanks for taking the questions. Can you hear me. Yes. Can you hear me guys?
Question: Tom Hayes - CL King & Associates - Analyst
: Good morning. Hey, Paul, I was just wondering if you could give us kind of a big-picture outlook on the industrial activity. I think in your release
yesterday, you called out, at least in the opening, kind of a slowing industrial activity level. Maybe kind-- of discuss what you saw coming out of
Q1 and kind of what you're seeing now. I think that would be helpful.
Question: Tom Hayes - CL King & Associates - Analyst
: No, I appreciate that. And then, maybe on the geographic front, I think I just want to make sure I kind of understood it right. It sounds like on the
APAC region, it was more the low single-digit declines. It was more the Australian customer-driven versus some broad change in demand. Did I
get that right?
Question: Tom Hayes - CL King & Associates - Analyst
: Okay, great. Maybe a couple more. One, maybe you kind of discuss what you're seeing on two of your growth pillars, the rail and the wind. I think
for some of our challenges, we get a little bit of mixed messages as far as the-- levels of activity there. I just wanted to see what you guys are seeing.
Question: Tom Hayes - CL King & Associates - Analyst
: I appreciate the color. Maybe two more if I could. One, I noticed your service revenue is down year-over-year. Just wondering what was that?
Because I believe I didn't go back and double check, but I think Q1 was up nicely. Was that just a timing or a seasonal issue?
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MARCH 21, 2024 / 12:30PM, EPAC.N - Q2 2024 Enerpac Tool Group Corp Earnings Call
Question: Tom Hayes - CL King & Associates - Analyst
: Great. I appreciate that. I'll jump back in the queue. Thanks, guys.
Question: Steve Silver - Argus Research - Analyst
: Good morning, everybody, and thanks for taking the questions, and congratulations on the continued margin expansion momentum--It's great
to see. Following up on one of the initial questions, given the slowdown in the industrial sector that you cited in the prepared remarks, just trying
to get a sense as to how you're seeing that play out on the balance sheet.
It looks like the balance sheet's remaining under the target leverage ratio. You're reaffirming your free cash flow guidance for the full year. Just
trying to get any updated thoughts you might have on the M&A environment given the macro challenges?
Question: Steve Silver - Argus Research - Analyst
: Great. That's helpful. Thanks. And one last one, if I can. Last quarter, you guys highlighted the advancing rollout of the Larzep brand. You cited
some new distributor deals and some promising early order flow. Just curious if there's any update on the front this quarter.
Question: Steve Silver - Argus Research - Analyst
: Great. Thanks for all the additional color. Appreciate it.
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