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: Michael Shlisky - D.A. Davidson & Co - Analyst
: I wanted to start just by discussing the full year guidance and what the back half implied numbers are it's looking like -- and we'll get to peak is
that we can dig deep to the exact numbers later, but roughly $8 million a quarter in EBITDA to round out the 20 to 24 for the year. I'm kind of
curious, and that does suggest a very good margin improvement between the second quarter and the third and fourth year. Is that the right run
rate to like look at beyond into '27? And a sense as where are there any large months year over year in the fiscal '27 outlook?
Question: Michael Shlisky - D.A. Davidson & Co - Analyst
: Okay. Got it. And the organic growth of 14% seems very strong as well. in trying to untangle the full-year outlook and kind of the longer-term
trends, what's your testation for full year organic growth and kind of the broader scale the approximate organic growth that you might be expecting?
Question: Michael Shlisky - D.A. Davidson & Co - Analyst
: Okay. Got it. And then just one last one. You mentioned in your comments there. the M&A outlook and the M&A plan.
Just can you update us on the target that you're looking at in rentals or termination, do you have any deals that might be more imminent than
others? Or is still very much in the early stages for most in that...
Question: Mark Smith - Lake Street Capital Markets LLC - Analyst
: I wanted to dig into gross profit margin a little bit more here, just as we think about the second half what's kind of implied for tariffs and any kind
of shipment timing for Q3 versus Q4 would be great.
Question: Mark Smith - Lake Street Capital Markets LLC - Analyst
: Okay. And while we are on that, just as we look at the inventories, they were up. It sounds like a fair amount of this is kind of prestocking stuff or
tariffs. How comfortable are you with your inventory levels today?
Question: Mark Smith - Lake Street Capital Markets LLC - Analyst
: Okay. And if I squeeze in one more here. Just -- have you seen any change yet in kind of buying in Latin America? Or is it still kind of skittish there
today?
Question: Gerard Sweeney - ROTH Capital Partners - Analyst
: I wanted -- one more question on tariffs, but maybe from a different angle. I'm just curious, obviously, you kind of outlined the impact on margins,
et cetera. But I'm wondering about maybe just more normalization, maybe from two perspectives. One, your client perspective, are they getting
more comfortable what's going on and sales are picking up. Obviously, we see some decent organic sales, et cetera.
But even secondarily, internally, right, you're a global company, you are a small-cap microcap, are you getting used to some of these variations
and variability in tariffs and just getting our arms around at manpower, which potentially could take away from sales optimization and just running
the everyday business? .
Question: Gerard Sweeney - ROTH Capital Partners - Analyst
: Got it. And I apologize, I'm not sure if this was asked. You talked about RFPs coming out, and they were a little bit slower than you probably
anticipated. Maybe a little bit more color on what you're seeing and just a little bit more confidence in terms of how that's going to develop. I'm
not sure if they've been issued and you're applying for them or what have you.
Question: Gerard Sweeney - ROTH Capital Partners - Analyst
: Got it. No, that's helpful. And listen, I mean, I certainly appreciate tariffs. We come into the office every day, and we see different headlines. So I get
being in the trenches could be challenging. So we definitely appreciate that.
Maybe a question for Roger. OpEx, I think you highlighted $1 million worth of savings, but targeting $3 million, I think, in the second half of this
fiscal year. as much as you can say, what are some of those -- what is that $3 million and sort of what is the timeline? Are they going to come sort
of towards the end of the year or sometime in the fiscal 3Q and then some more fiscal 4Q?
| 
