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: Ross Sparenblek - William Blair & Company, L.L.C. - Analyst
: Good morning, gentlemen.
Question: Ross Sparenblek - William Blair & Company, L.L.C. - Analyst
: Not too bad. Maybe could we just start off with the price versus volume during the quarter and maybe the expectations for an outlook through
end of the year?
Question: Ross Sparenblek - William Blair & Company, L.L.C. - Analyst
: Okay. And then on the new products and that contribution to mix, I mean, is the expectation that these are all going to be accretive? And then
maybe just help us conceptualize how this relates to product vitality index and your overall SKU rationalization strategy.
Question: Ross Sparenblek - William Blair & Company, L.L.C. - Analyst
: Okay. That's very helpful. And then just maybe sticking on the new products and your second brand launch in the APAC region, low-double-digit
decline. You noted Australia mining was weaker. Can you just provide an update on how the adoption of that second brand is going?
Question: Ross Sparenblek - William Blair & Company, L.L.C. - Analyst
: Yeah. And Paul, would you be willing to frame what that growth look like for the second brand in the quarter?
Question: Ross Sparenblek - William Blair & Company, L.L.C. - Analyst
: Thank you, guys. I'll hop back in line.
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Thanks. Hey, good morning, Paul. Hey, I was just wondering, could you maybe discuss how you saw your overall business conditions change as
the quarter progressed? And were those changes generally in line with your expectations?
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JUNE 25, 2024 / 12:30PM, EPAC.N - Q3 2024 Enerpac Tool Group Corp Earnings Call
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Okay, great. I know it tends to be lumpy in nature, but was it -- anything really stood out as far as your service revenue? I mean, it was up nicely,
almost -- over 7% on a year-over-year basis.
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Okay, great. Maybe shifting gears to the margin front. Another great job on the quarterly on the gross margin. Maybe any granularity you can
provide on that, kind of the drivers of that, and just maybe talk about the sustainability of that rate because you've had a nice run this year.
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Okay. That was great. Appreciate the color. We talked last quarter on channel inventories, and I think we call -- or you guys highlighted that maybe
the Americas was a bit above your average and APAC was -- their pockets maybe a bit heavy. I was just wondering where we are as we end the
third quarter.
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Okay. Maybe two more if I could. Just wanted to ask -- just a clarification. I think you mentioned, Paul, that you're adding new sales partners. Was
that for the APAC region? I missed that part.
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Okay. And just lastly, on your new product rollout, especially your battery-powered tools, maybe provide some maybe color on customer reactions
because it seems to be pretty innovative in nature. Thank you.
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Are those fully available now?
Question: Tom Hayes - C.L. King & Associates Inc. - Analyst
: Great. Appreciate the color. Thanks, guys.
Question: Steve Silver - Argus Research - Analyst
: Thanks, operator, and good morning and thanks for taking the questions. In terms of the divergence of IT&S on a regional basis, you've already
discussed APAC. But on the other end, you had double-digit growth in EMEA. I was just hoping you could discuss a little bit about the drivers of
that strength and whether you think that's sustainable.
Question: Steve Silver - Argus Research - Analyst
: That's helpful. Thanks. And one last, if I can. You've projected -- I think it was 6% to 7% organic revenue CAGR growth through fiscal '26. With the
softness that you're seeing in the industrial marketplace, just curious if you have any updated thinking on the prospects for achieving that objective.
Question: Steve Silver - Argus Research - Analyst
: Great. Thanks again.
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