Aaon Inc (AAON) 2022 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to AAON's Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到 AAON 2022 年第三季度收益電話會議。所有線路都已設為靜音以防止任何背景噪音。發言者發言後，將進行問答環節。 （操作員說明）

Joe Mondillo, Director of IR, you may begin your conference.

IR 總監 Joe Mondillo，你可以開始你的會議了。

Thank you, operator, and good afternoon, everyone. A press release announcing our third quarter 2022 financial results was issued after market close today and can be found on our corporate website aaon.com.

謝謝接線員，大家下午好。今天收市後發布了一份宣布我們 2022 年第三季度財務業績的新聞稿，可以在我們的公司網站 aaon.com 上找到。

Joining me on the call today are Gary Fields, our President and CEO; and Rebecca Thompson, CFO and Treasurer. Shortly, I'll be handing the call off to Rebecca, for her to go through the third quarter results. Gary will then provide further insight on the quarter along with commentary on our outlook, and then we'll open-up the call to Q&A.

今天和我一起參加電話會議的是我們的總裁兼首席執行官 Gary Fields；首席財務官兼財務主管麗貝卡·湯普森 (Rebecca Thompson)。很快，我會將電話轉給麗貝卡，讓她查看第三季度的結果。然後 Gary 將提供對該季度的進一步見解以及對我們前景的評論，然後我們將打開問答電話。

Prior to that though, we begin our customary forward-looking statement policy. During the call any statement presented dealing with information that is not historical is considered forward-looking and made pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995, the Securities Act of 1933 and the Securities Exchange Act of 1934, each as amended. As such, it is subject to the occurrence of many events outside of AAON's control and that could cause AAON's results to differ materially from those anticipated. You are all aware of the inherent difficulties, risks and uncertainties in making predictive statements.

不過，在此之前，我們開始執行慣常的前瞻性聲明政策。在電話會議期間，任何處理非歷史信息的陳述均被視為前瞻性陳述，並根據 1995 年證券訴訟改革法、1933 年證券法和 1934 年證券交易法的安全港條款作出，每一個修改。因此，它受制於 AAON 無法控制的許多事件的發生，這可能導致 AAON 的結果與預期的結果存在重大差異。你們都知道做出預測性陳述的內在困難、風險和不確定性。

Our press release and Form 10-Q that we filed this afternoon detail some of the important risk factors that may cause our actual results to differ from those in our predictions. Please note, that we do not have the duty to update our forward-looking statements.

我們今天下午提交的新聞稿和 10-Q 表格詳細說明了一些可能導致我們的實際結果與預測結果不同的重要風險因素。請注意，我們沒有義務更新我們的前瞻性陳述。

And with that, I will turn the call over to Rebecca.

有了這個，我會把電話轉給麗貝卡。

Thank you, Joe. I'd like to begin by discussing the comparative results of the three months ended September 30, 2022 versus September 30, 2021.

謝謝你，喬。我想首先討論截至 2022 年 9 月 30 日的三個月與截至 2021 年 9 月 30 日的三個月的比較結果。

Net sales increased 75.1% to $242.6 million from $138.6 million. The largest driving factor to the growth was organic volume, which contributed 26.9%. Volume growth reflected the Company's strong backlog and a third straight quarter of record production. Improved productivity, along with an approximate 18% increase in organic headcount helped drive the increased production. In addition to volume, pricing contributed 24.4% and the acquisition of BasX contributed 23.8%. Similar to the legacy business, BasX performed extremely well in the quarter. BasX realized record sales and EBITDA of any quarter in its history, while increasing its backlog 33.8% from the end of the second quarter of 2022.

淨銷售額從 1.386 億美元增長 75.1% 至 2.426 億美元。增長的最大驅動因素是有機銷量，貢獻了 26.9%。銷量增長反映了公司的大量積壓訂單和連續第三個季度創紀錄的產量。生產力的提高以及有機員工人數增加約 18% 有助於推動產量增加。除銷量外，定價貢獻了 24.4%，收購 BasX 貢獻了 23.8%。與傳統業務類似，BasX 在本季度的表現非常出色。 BasX 實現了其歷史上任何一個季度的創紀錄銷售額和 EBITDA，同時其積壓訂單比 2022 年第二季度末增加了 33.8%。

Our gross profit increased 82.1% to $65.6 million from $36 million. As a percentage of sales, gross profit was 27%, compared to 26% in the third quarter of 2021. The expansion in gross profit margin was driven by higher pricing and improved productivity, partially offset by higher costs and adverse effects of supply chain issues. Gross profit was the highest since the second quarter of 2021. Similar to the trends realized in the second quarter of 2022, gross profit margin improved throughout the third quarter.

我們的毛利潤從 3600 萬美元增長 82.1% 至 6560 萬美元。毛利潤佔銷售額的百分比為 27%，而 2021 年第三季度為 26%。毛利率的增長是由更高的定價和提高的生產率推動的，部分被更高的成本和供應鏈問題的不利影響所抵消.毛利潤為 2021 年第二季度以來的最高水平。與 2022 年第二季度實現的趨勢類似，整個第三季度毛利率均有所改善。

Selling, general and administrative expenses increased 81.7% to $28.9 million from $15.9 million in the third quarter of 2021. As a percentage of sales, SG&A increased to 11.9% from 11.5% in the third quarter of 2021. Excluding BasX, SG&A expenses increased 41.5% and totaled 10.7% of sales, down 80 basis points from a year ago. We continue to do a good job of controlling these expenses. Income from operations increased 82.3% to $36.7 million or 15.1% of sales from $20.1 million or 14.5% of sales in the third quarter of 2021.

銷售、一般和行政費用從 2021 年第三季度的 1590 萬美元增長 81.7% 至 2890 萬美元。SG&A 佔銷售額的百分比從 2021 年第三季度的 11.5% 增至 11.9%。不包括 BasX，SG&A 費用增長 41.5 %，佔銷售額的 10.7%，比一年前下降 80 個基點。我們繼續做好控制這些費用的工作。運營收入從 2021 年第三季度的 2010 萬美元或銷售額的 14.5% 增長 82.3% 至 3670 萬美元或銷售額的 15.1%。

Our effective tax rate increased to 23.3% from 22.5%. The Company's estimated annual 2022 effective tax rate excluding discrete events is expected to be approximately 25%. Net income increased to $27.5 million or 11.3% of sales, compared to $15.6 million or 11.2% of sales in the third quarter of 2021. Diluted earnings per share increased 75.9% to $0.51 per share from $0.29 per share.

我們的有效稅率從 22.5% 增加到 23.3%。不包括離散事件，公司估計的 2022 年年度有效稅率預計約為 25%。淨收入增至 2750 萬美元，佔銷售額的 11.3%，而 2021 年第三季度為 1560 萬美元，佔銷售額的 11.2%。稀釋後每股收益從每股 0.29 美元增長 75.9% 至每股 0.51 美元。

Turning to the balance sheet. You'll see that we had a working capital balance of $193.9 million versus $131.3 million at December 31, 2021. Unrestricted cash totaled $10.7 million on September 30, 2022, and total debt at the end of the quarter totaled $76.3 million. Within the quarter, we paid down approximately $30 million on our line of credit, lowering our leverage ratio to 0.65 from 1.06 at the end of the second quarter. Capital expenditures for the first nine months of the year were $41.6 million. We now expect capital expenditures for the year to be approximately $73.3 million.

轉向資產負債表。你會看到我們的營運資金餘額為 1.939 億美元，而 2021 年 12 月 31 日為 1.313 億美元。2022 年 9 月 30 日，不受限制的現金總額為 1070 萬美元，本季度末的總債務總額為 7630 萬美元。在本季度內，我們支付了大約 3000 萬美元的信貸額度，將我們的槓桿率從第二季度末的 1.06 降至 0.65。今年前九個月的資本支出為 4160 萬美元。我們現在預計今年的資本支出約為 7330 萬美元。

We monitor our growth trajectory and capacity regularly and we continue to invest in long-term growth. The Company had stock repurchases of $8.9 million during the nine months ended September 30, 2022. Shareholders' equity per diluted share is $9.72 at September 30, 2022, compared to $8.68 at December 31, 2021.

我們定期監控我們的增長軌跡和產能，並繼續投資於長期增長。在截至 2022 年 9 月 30 日的九個月內，公司回購了 890 萬美元的股票。截至 2022 年 9 月 30 日，稀釋後每股股東權益為 9.72 美元，而 2021 年 12 月 31 日為 8.68 美元。

I'd now like to turn the call over to our CEO and President, Gary Fields.

我現在想把電話轉給我們的首席執行官兼總裁 Gary Fields。

Overall, we're extremely pleased with third quarter results; record sales, production, EBITDA, earnings and record backlog. The Company is performing very well, particularly compared to where we were just a couple of quarters ago. Gross margin is still not where we want it to be, but we have made substantial progress. Gross margin and operating margin in the third quarter was the highest since second quarter of 2021.

總的來說，我們對第三季度的結果非常滿意；記錄銷售、生產、EBITDA、收益和記錄積壓。公司表現非常好，特別是與幾個季度前相比。毛利率仍未達到我們想要的水平，但我們已經取得了實質性進展。第三季度的毛利率和營業利潤率是自 2021 年第二季度以來的最高水平。

I'm very pleased with our operations within the overall team and want to continue to commend their performance. The last 18 months have been an extremely challenging environment and to be able to say we just realized a third straight quarter of record production is truly commendable. Organic volume growth at 26.9% that was realized in the third quarter is pretty much unheard of in this industry and the comp was not easy. Volume in the third quarter of the year ago period was down 1% from a record third quarter in 2020.

我對我們整個團隊的運作感到非常滿意，並希望繼續表揚他們的表現。過去 18 個月是一個極具挑戰性的環境，可以說我們剛剛實現了連續第三個季度的唱片製作，這確實值得稱道。第三季度實現的 26.9% 的有機銷量增長在該行業幾乎聞所未聞，而且競爭並不容易。去年第三季度的銷量比 2020 年創紀錄的第三季度下降了 1%。

On a two-year stack, volume was up 25%. This performance is a result of several factors. First, as Rebecca mentioned, headcount of the legacy company was up 18%. We continue to do a good job with onboarding new employees. Second, productivity has improved significantly. When we look at our unit sales on a per day per production employee basis, the third quarter was the highest its been all year and that's when eliminating all the price increases. The legacy operation is operating at a much improved level. And I can say that this trend continued through October. Lastly, the volume growth is also a reflection of our premier sales channel and the backlog our rep partners have been able to generate for us. I'd like to thank all of our channel partners, as well as all of our internal sales support. Our sales channel has never been as strong as it is right now and we're seeing it through the share gains we've been realizing.

在兩年的堆棧中，交易量增長了 25%。這種性能是幾個因素的結果。首先，正如 Rebecca 提到的，舊公司的員工人數增加了 18%。我們繼續在新員工入職方面做得很好。二是生產效率顯著提高。當我們以每個生產員工每天的單位銷售額來看我們的單位銷售額時，第三季度是全年最高的，而且是在消除所有價格上漲的時候。遺留業務的運營水平大大提高。我可以說這種趨勢一直持續到 10 月。最後，銷量增長也反映了我們主要的銷售渠道和我們的代表合作夥伴能夠為我們產生的積壓訂單。我要感謝我們所有的渠道合作夥伴，以及我們所有的內部銷售支持。我們的銷售渠道從未像現在這樣強大，我們通過實現的份額增長看到了這一點。

Before diving deeper into the backlog and our sales channel, I want to discuss our pricing and gross margins. As we've discussed in the past, dealing with hyper-demand and hyper-inflation while at the same time maintaining best practices with our channel partners has been challenging. We've been saying the margin profile or the backlog has been on track to drive a recovery in gross margins. I'm thrilled to report that's exactly what we saw in the third quarter. The 27% gross margin realized in the quarter was up 430 basis points from the second quarter and up 100 basis points from the year ago quarter. It was the strongest gross margin since the second quarter of 2021. We're very happy to see that. We're still not where we need to be, but gross margin improved throughout the quarter. The margin profile of the current backlog is the best it's been in over a year, we're going to continue to see productivity improvements going forward. Our gross margin is well on-track to fully recover. This improvement is largely related to a normalization of price versus cost.

在深入研究積壓訂單和我們的銷售渠道之前，我想討論一下我們的定價和毛利率。正如我們過去所討論的那樣，在應對超需求和超通脹的同時與我們的渠道合作夥伴保持最佳實踐一直是一項挑戰。我們一直在說利潤率概況或積壓訂單一直在推動毛利率回升。我很高興地報告這正是我們在第三季度看到的情況。本季度實現的 27% 毛利率比第二季度高 430 個基點，比去年同期高 100 個基點。這是自 2021 年第二季度以來最高的毛利率。我們很高興看到這一點。我們仍然沒有達到我們需要的水平，但整個季度的毛利率都有所提高。當前積壓的利潤率是一年多來最好的，我們將繼續看到生產力的提高。我們的毛利率有望完全恢復。這種改善在很大程度上與價格與成本的正常化有關。

In addition, improved productivity is also a contributing factor. You can specifically see this at our AAON Coil Products segment, but it's happening throughout the organization. In the third quarter AAON Coil Products generated almost the exact amount of gross profit that it realized in all of 2021. It's not only a result of pricing, productivity improvements have been a driver to gross margin as well. We expect that factor will continue, especially as supply chain issues ease.

此外，生產力的提高也是一個促成因素。您可以在我們的 AAON 線圈產品部門具體看到這一點，但它正在整個組織中發生。在第三季度，AAON 線圈產品產生的毛利潤幾乎與它在 2021 年全年實現的毛利潤完全相同。這不僅是定價的結果，生產力的提高也是毛利率的推動因素。我們預計這一因素將持續下去，尤其是隨著供應鏈問題的緩解。

Returning to the backlog and what we're seeing with demand. Overall demand remains strong. Total backlog was up 183.1% from a year ago and up 10.9% for the end of the second quarter. Organically, backlog was up 109.6% from a year ago and up 4.7% from the end of second quarter. The fact that backlog continues to increase sequentially is a sign that demand remains strong, particularly because our production is also increasing. Organic bookings in the quarter were up year-over-year 28%. Sequentially, they were up 36.7%, which is mostly volume-driven.

回到積壓和我們看到的需求。總體需求依然強勁。總積壓訂單比一年前增長了 183.1%，第二季度末增長了 10.9%。有機地，積壓比一年前增加了 109.6%，比第二季度末增加了 4.7%。積壓繼續增加的事實表明需求依然強勁，特別是因為我們的產量也在增加。本季度有機預訂量同比增長 28%。隨後，它們上漲了 36.7%，這主要是由銷量驅動的。

Demand is very strong at BasX. Bookings at BasX compared to the second quarter were up 67%. Backlog at BasX is up 267.1% since the end of 2021 and up 33.8% from the end of second quarter. While both the legacy business and BasX continue to increase production to record levels, backlog continues to grow. Our lead times remain a contributing factor to growth in bookings of both the legacy business and BasX. Demand continues to be fairly broad-based as far as end markets, lodging and office buildings remain soft, but outside of that, most sectors are quite strong. Data centers and semiconductor markets are very strong, education remains solid, healthcare and manufacturing are still good. We're seeing robust demand in the [growth] facility. Warehouse seems to be slowing a bit, but remains still pretty good.

BasX 的需求非常強勁。與第二季度相比，BasX 的預訂量增長了 67%。自 2021 年底以來，BasX 的積壓訂單增加了 267.1%，比第二季度末增加了 33.8%。雖然傳統業務和 BasX 都繼續將產量提高到創紀錄的水平，但積壓訂單仍在繼續增長。我們的交貨時間仍然是傳統業務和 BasX 預訂量增長的一個促成因素。就終端市場、住宿和辦公樓而言，需求仍然相當廣泛，但除此之外，大多數行業都相當強勁。數據中心和半導體市場非常強勁，教育仍然穩固，醫療保健和製造業仍然良好。我們看到 [增長] 設施的強勁需求。倉庫似乎有點放緩，但仍然相當不錯。

Overall, demand is quite strong across the board. While we continue to monitor for the slowdown that it seems everyone is anticipating, we do not see it. Sentiment among our channel partners remains very positive and the macro data we track is also encouraging. Construction spending is back to pre-pandemic levels and all of the leading indicators that we track such as the ABI, the Dodge Momentum Index, and Construction Starts are suggesting the next 12 months will continue to be strong.

總體而言，整體需求相當強勁。雖然我們繼續監控似乎每個人都在預期的放緩，但我們沒有看到它。我們的渠道合作夥伴之間的情緒仍然非常積極，我們跟踪的宏觀數據也令人鼓舞。建築支出已恢復到大流行前的水平，我們追踪的所有領先指標（例如 ABI、道奇動量指數和建築開工數）都表明未來 12 個月將繼續保持強勁勢頭。

Our biggest challenge right now is ramping up production fast enough. While everyone is happy to see backlog growing, we'd actually like to see backlog start to come down, led by improving lead times, which I think we're going to start to see in 2023. The team is doing a great job with adding headcount, while improving productivity at the same time, and we're continuing to invest in capacity. Our CapEx this year is probably going to be about 8% of sales and CapEx both on an absolute basis and as a percent of sales will most likely increase in 2023.

我們現在最大的挑戰是足夠快地提高產量。雖然每個人都樂於看到積壓訂單增加，但我們實際上希望看到積壓訂單開始減少，這得益於交貨時間的縮短，我認為我們將在 2023 年開始看到這一點。團隊在以下方面做得很好增加員工人數，同時提高生產力，我們將繼續投資於產能。我們今年的資本支出可能佔銷售額的 8% 左右，資本支出的絕對值和占銷售額的百分比很可能在 2023 年增加。

We want to continue to provide our channel partners and customers with the best lead times. To do this, we're going to continue to invest in the business. We feel strongly that we have the best product offering at the best value to accommodate the increasing demands related to decarbonization, energy efficiency and indoor air quality. As we continued to deliver at a very competitive lead time, we're going to set our channel partners up for maximum success, enable them to continue to take share.

我們希望繼續為我們的渠道合作夥伴和客戶提供最佳的交貨時間。為此，我們將繼續對該業務進行投資。我們強烈認為，我們以最佳價值提供最好的產品，以滿足與脫碳、能源效率和室內空氣質量相關的日益增長的需求。隨著我們繼續以極具競爭力的交貨時間交付產品，我們將幫助我們的渠道合作夥伴取得最大的成功，使他們能夠繼續分享。

I want to provide a little color on our water source heat pump business and the decision we made to exit a couple of product lines. In 2015, prior to my arrival, the company entered this market organically with the thought that it would complement our product portfolio of energy efficient equipment and that the market had vulnerabilities we could capitalize on. We've determined to terminate a portion of this business, specifically our horizontal and vertically configured indoor units. This equipment is very standard and has minimal pricing power and we haven't been able to generate profit margins that we expect. Furthermore, the upcoming refrigerant regulations would require capital investment we decided would not be the best use of capital. It's not unusual for an innovative company like AAON to make changes like this. And as we've always done, we'll continue to monitor the financial performance of our product portfolio. This portion of the business generated approximately $10 million of sales in 2021 and is on-track to do similar in 2022. So it's only about 1% of sales. We wouldn't normally address something so immaterial to revenue, but we've openly discussed the water-source heat pump business since inception. As such, we felt it would be appropriate to provide some information on what we're doing. Also, by doing this, it's going to lend more capacity for high margin, high growth equipment. We will repurpose headcount and equipment once the production of this product line is wound-down which will be in early 2023.

我想對我們的水源熱泵業務和我們做出的退出幾條產品線的決定提供一點顏色。 2015 年，在我到來之前，該公司有機地進入了這個市場，認為它可以補充我們的節能設備產品組合，並且市場存在我們可以利用的弱點。我們已決定終止該業務的一部分，特別是我們的水平和垂直配置的室內機。該設備非常標準，定價能力極低，我們無法產生預期的利潤率。此外，即將出台的製冷劑法規需要資本投資，我們認為這不是資本的最佳利用方式。像 AAON 這樣的創新型公司做出這樣的改變並不罕見。正如我們一直所做的那樣，我們將繼續監控我們產品組合的財務業績。這部分業務在 2021 年產生了大約 1000 萬美元的銷售額，並有望在 2022 年實現類似的目標。因此它僅佔銷售額的 1% 左右。我們通常不會討論對收入如此無關緊要的事情，但我們從一開始就公開討論了水源熱泵業務。因此，我們認為提供一些關於我們正在做的事情的信息是合適的。此外，通過這樣做，它將為高利潤、高增長的設備提供更多產能。一旦該產品線的生產結束（將於 2023 年初結束），我們將重新調整人員和設備的用途。

I also want to touch briefly on our Parts business. Parts still make up a small percentage of sales at 6.6%, but it's something we've been focusing a lot on, Both internally and with our channel partners, we've been having great success. Parts sales in the third quarter were up 31.4% and were a quarterly record for the Company for the second straight quarter. The 31.4% growth was against a comp of 15.4% growth realized in the third quarter of 2021. Compared to 2020, part sales were up 51.7% this past quarter. Parts generate some of the strongest gross margins in our company. So growing this business will continue to be a strong focus of ours.

我還想簡單談談我們的零部件業務。零件仍然佔銷售額的一小部分，為 6.6%，但這是我們一直非常關注的事情，無論是在內部還是與我們的渠道合作夥伴，我們都取得了巨大的成功。第三季度的零部件銷售額增長了 31.4%，連續第二個季度創下公司的季度記錄。 31.4% 的增長率與 2021 年第三季度 15.4% 的增長率形成鮮明對比。與 2020 年相比，上一季度的零件銷售額增長了 51.7%。零件在我們公司產生了一些最高的毛利率。因此，發展這項業務將繼續成為我們的重點。

Before finishing up and handing off the call for Q&A, I want to provide some information on our outlook for the rest of the year. Based on the size of the backlog, the improving margin profile of the backlog and the increasing production capacity and productivity, we anticipate we will finish off the year on a high note. Sales in the fourth quarter most likely will be comparable to the third quarter due to the holidays we see in the quarter. Margins and earnings will continue to improve sequentially. We expect gross margins will finally fully recover to the target range of 28% to 32% that we've been talking about. Looking out to 2023, still early, but we remain optimistic. Backlog will be entering the year up substantially from a year ago and we will continue to realize more price, which should pave the way for continued margin improvement. Long-term, we're continuing to invest in capacity and growth.

在結束並結束問答環節之前，我想提供一些有關今年剩餘時間展望的信息。根據積壓訂單的規模、積壓訂單利潤率的改善以及產能和生產率的提高，我們預計我們將以高調結束這一年。由於我們在本季度看到的假期，第四季度的銷售額很可能與第三季度相當。利潤率和收益將繼續環比改善。我們預計毛利率最終將完全恢復到我們一直在談論的 28% 至 32% 的目標範圍。展望 2023 年，雖然還早，但我們仍然保持樂觀。積壓訂單將比一年前大幅增加，我們將繼續實現更多價格，這將為持續提高利潤率鋪平道路。從長遠來看，我們將繼續投資於產能和增長。

In closing, I want to finish by thanking all of our employees, sales channel partners and customers.

最後，我想感謝我們所有的員工、銷售渠道合作夥伴和客戶。

Thank you. And I will now open it for Q&A.

謝謝。我現在將打開它進行問答。

(Operator Instructions) Your first question comes from the line of Chris Moore with CJS Securities.

（操作員說明）您的第一個問題來自 CJS 證券公司的 Chris Moore。

AAON historically has been priced at roughly 15% premium to the market. Even with your recent price increases, that pricing delta looks to be maybe in high single digits, in some cases close to parity. Can you maybe talk a little bit about what's driving that closing gap and do you expect this to be the new normal?

從歷史上看，AAON 的定價比市場溢價約 15%。即使最近價格上漲，價格增量看起來也可能是高個位數，在某些情況下接近平價。你能不能談談是什麼推動了差距的縮小，你認為這會成為新常態嗎？

Well, we're watching that carefully. We've always kind of managed to margin, not so much to market. But I think we need to pay attention to that because we are a value over most of our competitors. So I think that the equipment definitely warrants a bit of a premium. As I've said in past calls, quite a while back, at a 15% premium, there's a fair amount of work goes into proving the value. And in the past, it took some pretty strong talents in the sales channel to do that. As that premium comes down to 10%, it becomes much easier to explain and people began to take notice of it much better. So I'd like to make sure that we stay in that range, but we've also added a lot of marketing tools that help explain that value. We have a new building that's going to be opening up probably first quarter of 2023 where we'll have our equipment along with different competitors equipment sitting side by side and the visual representation is quite strong by itself without a lot of calculations.

好吧，我們正在仔細觀察。我們總是設法賺取利潤，而不是推向市場。但我認為我們需要注意這一點，因為我們比大多數競爭對手更具價值。所以我認為該設備絕對值得購買。正如我在過去的電話中所說，很久以前，以 15% 的溢價，證明價值需要做大量工作。而在過去，需要銷售渠道中一些非常強大的人才才能做到這一點。隨著溢價降至 10%，解釋起來變得容易得多，人們開始更好地註意到它。所以我想確保我們保持在這個範圍內，但我們也添加了很多營銷工具來幫助解釋這個價值。我們有一座新大樓，可能會在 2023 年第一季度開放，在那裡我們將把我們的設備和不同競爭對手的設備並排放置，視覺表現本身就非常強大，無需大量計算。

Maybe just one more. You guys have introduced some cold climate air source heat pumps this year, I guess maybe a few questions there. How is the market reacting to them? How significant they are relative to the whole decarbonization trend? And lastly, how do their capabilities compared to the rest of the market?

也許只有一個。你們今年推出了一些寒冷氣候的空氣源熱泵，我想可能會有一些問題。市場對它們的反應如何？它們相對於整個脫碳趨勢有多重要？最後，與其他市場相比，他們的能力如何？

All right. I'll start with your first part. The market is loving it. We had significant building owners in the laboratory recently for them to witness the testing of those units. We've already proven their performance, but we keep a unit available to display to people, so they can see the performance characteristics with empirical data, not some model data. This particular client has kind of made the news recently for not building quite as much as what they had originally intended to. But what they're doing is going back and looking at some existing buildings and trying to bring them into compliance with some of their decarbonization goals that they have. So we have multiple clients looking at it that way. And that's where e-commerce, warehouses, maybe on a new construction basis have slowed down, but our impact on that is growing substantially. And I think a lot of it's going to be change-up. Another thing you may recall was, when I came to the company six years ago, we were about 50% new construction and 50% replacement. And I made the statement then that our goal was to raise the replacement percentage, while also growing the new construction application. We've been very successful with that. I don't have latest figures on that, but it's somewhere upwards of 60%, approaching 65% the last time I saw it on replacement. And I think the cold climate capable air source heat pump is driving a fair amount of that.

好的。我將從你的第一部分開始。市場很喜歡它。我們最近在實驗室邀請了重要的建築業主，讓他們見證這些單元的測試。我們已經證明了它們的性能，但我們保留了一個單元供人們展示，這樣他們就可以通過經驗數據而不是一些模型數據來查看性能特徵。這個特定的客戶最近有點像新聞，因為沒有像他們最初打算的那樣建造那麼多。但他們正在做的是回頭看看一些現有的建築，並試圖讓它們符合他們的一些脫碳目標。所以我們有多個客戶以這種方式看待它。這就是電子商務、倉庫，也許在新建築基礎上已經放緩的地方，但我們對此的影響正在大幅增長。而且我認為其中很多都會發生變化。你可能還記得的另一件事是，當我六年前來到公司時，我們大約有 50% 是新建的，50% 是更換的。我當時發表聲明說，我們的目標是提高替代率，同時增加新的建築應用。我們在這方面非常成功。我沒有這方面的最新數據，但它在 60% 以上，我上次在更換時看到它時接近 65%。而且我認為能夠應對寒冷氣候的空氣源熱泵正在推動其中的相當一部分。

The next thing -- I got your third part of your question on the capabilities. I'll ask you to repeat the second.

接下來——我收到了關於功能的問題的第三部分。我會請你重複第二個。

Yeah. The second was just how significant these products are relative to the whole decarbonization trend?

是的。第二個是這些產品相對於整個脫碳趨勢有多重要？

Well, they're very significant. When you look at the portion of the United States or North America for that matter that a zero degree Fahrenheit capable air source heat pump with good efficiency and good capacity applies. It's significant. We have development ongoing with new technology that will take us down to minus 25 Fahrenheit, but that's going to also be completed in conjunction with the refrigerant changeover. So, at this point in time, we've opened up a lot of possibilities with zero degree capable, and we're seeing strong support for that. As we get the new parts and pieces that are required for minus 25, I think it'll be very, very significant.

嗯，它們非常重要。當您查看美國或北美的部分地區時，適用於具有良好效率和良好容量的零華氏度空氣源熱泵。這很重要。我們正在進行新技術的開發，這將使我們的溫度降至零下 25 華氏度，但這也將與製冷劑轉換一起完成。因此，在這個時間點，我們已經開闢了零度能力的許多可能性，並且我們看到了對此的大力支持。當我們獲得負 25 所需的新零件時，我認為這將非常非常重要。

And I've forgotten your third part. Give me the third part again. Is it compared to rest of the market? What else is out there? Yeah. Okay. So the vast majority, according to the research that my team has provided me, the vast majority of air source heat pumps that are out there, which there's not that big of a selection in package rooftops. There are great selections in residential unitary, split systems, but in package rooftops, there's not a huge selection, but most of them seem to not be viable below, maybe 30 degrees or even 35 degrees Fahrenheit. So being able to capture that delta, will use the smaller number from 30 degrees down to zero degrees. That captures a huge amount of operating hours in areas that are not Sunbelt areas. So it's pretty significant. And like I say, with the research we've got products that they've already been in the lab and tested with prototype materials. As those become commercially available, we're going to be able to capture just a significant more of that -- people that want to decarbonize.

我忘記了你的第三部分。再給我第三部分。與其他市場相比？外面還有什麼？是的。好的。所以絕大多數，根據我的團隊提供給我的研究，絕大多數空氣源熱泵都在那裡，在封裝屋頂中沒有那麼大的選擇。在住宅單元式、分體式系統中有很好的選擇，但在組合屋頂中，選擇並不多，但大多數似乎在低於 30 華氏度甚至 35 華氏度時都不可行。因此，為了捕獲該增量，將使用從 30 度到 0 度的較小數字。這在非 Sunbelt 地區的地區佔據了大量的運營時間。所以這很重要。就像我說的，通過研究，我們已經得到了他們已經在實驗室中使用原型材料進行測試的產品。隨著這些產品的商業化，我們將能夠捕獲更多的人——想要脫碳的人。

Your next question comes from the line of Brent Thielman with D.A. Davidson.

你的下一個問題來自 Brent Thielman 和 D.A.戴維森。

Gary, it looks like you got about 24% from price of the 75% in total growth. I was wondering if any of the March price increase, which I think was 7%, is any of that represented in the revenue you've reported today? And I guess you've still got the 1 percentage point increases thereafter?

加里，看起來你從總增長 75% 的價格中獲得了大約 24%。我想知道 3 月份的價格上漲，我認為是 7%，是否在您今天報告的收入中有任何體現？我猜你之後還有 1 個百分點的增長嗎？

I don't have the exact percentage, maybe Rebecca might have that. I'll ask her to look that up and see if she can get that for you percentage in the quarter. I know in October, we're getting a good bit more of the market price increase. We looked at it how that occurred. At one time, I was told up to 7%, we got about 5% in October. So it was beginning to come into the quarter, but it would have been the very tail-end. So there's quite a bit left to gain. And then as you mentioned, starting June 1, we had 1% per month, and that's still in place. We've not discontinued that yet.

我沒有確切的百分比，也許 Rebecca 可能有。我會讓她查一下，看看她是否能在本季度為你得到這個百分比。我知道在 10 月份，市場價格上漲幅度更大。我們研究了它是如何發生的。有一次，我被告知高達 7%，我們在 10 月份獲得了大約 5%。所以它開始進入這個季度，但它本來就是尾聲。所以還有相當多的收穫。然後正如你提到的，從 6 月 1 日開始，我們每月有 1%，而且仍然存在。我們還沒有停止。

And then Gary, last quarter, you guys talked a bit about all the inroads that BasX is making and maybe some opportunity to produce product out of Longview for a customer or maybe set of customers, is there any update on the progress on that front?

然後加里，上個季度，你們談到了 BasX 正在取得的所有進展，也許有機會為一個客戶或一組客戶從 Longview 生產產品，這方面的進展有什麼最新進展嗎？

Yes. The first prototype units have been built. There's one on the way to the laboratory right now for final testing. It may be there by now. Last week, it was finished. In Longview, the manufacturing facility is ready to go. We vetted out the process. We built three prototypes, so that we could learn what was most manufacturable to meet the expectations of the client and we actually ended up giving them a little more than what we originally thought we were going to give them but it was a more manufacturable unit. So we're not anticipating starting full blown production till around January 1. Between now and then, we'll be vetting out the manufacturing process, refining it, and so forth. Because remember, you design and build one of these units once -- you design it once, and then you build it hundreds, if not thousands of times. So they are very, very custom, but you get to put a fairly large number in front of the bill of materials when you go doing it. So you want to make sure everything is optimized as possible. And that's what we're in the process of cleaning up and finishing up right now.

是的。第一個原型單元已經建成。現在有一個正在去實驗室進行最終測試的路上。它可能現在就在那裡。上週，它完成了。在 Longview，製造工廠已準備就緒。我們審查了這個過程。我們建造了三個原型，這樣我們就可以了解什麼是最可製造的，以滿足客戶的期望，實際上我們最終給了他們比我們最初認為我們要給他們的多一點，但它是一個更可製造的單元。因此，我們預計要到 1 月 1 日左右才會開始全面生產。從現在到那時，我們將審查製造過程、改進它等等。因為請記住，您設計和構建其中一個單元一次——您設計一次，然後構建它數百次，甚至數千次。所以它們是非常非常定制的，但是當你去做的時候，你會在材料清單前面放一個相當大的數字。所以你想確保一切都盡可能優化。這就是我們現在正在清理和完成的過程。

Hey Brent, I can circle back to you on that pricing question. For the March price increase that was 7%. We saw about 1% of it in August, almost 3% of that in September, and a little over 6% of that in October.

嘿布倫特，我可以在那個定價問題上回复你。 3 月份的價格漲幅為 7%。我們在 8 月份看到了大約 1%，在 9 月份看到了近 3%，在 10 月份看到了略高於 6%。

And then, maybe just another one. Gary, you mentioned potential for backlog to come in here at some point in 2023 as your lead times improve. So some of the competitions out there has talked about continued stretch lead times in the industry. Maybe you could just talk around that. And I guess, what you see in terms of visibility for 2023 and even '24, if you can comment on at this point?

然後，也許只是另一個。加里，你提到隨著交貨時間的縮短，2023 年某個時候可能會出現積壓。因此，一些比賽已經談到了行業中持續延長的交貨時間。也許你可以談談這個。我想，如果您此時可以發表評論，您對 2023 年甚至 24 年的可見度有何看法？

Well, I want to go back to the beginning. It's six years ago last week that I began as President of AAON. And when I became President, I took over all the sales, engineering, and manufacturing, the back office stuff stayed with Norm. Norm made the statement to me as I walked in the door that the Company could build more than we could sell. And so I went about working with sales channel to improve a lot of things that I knew was holding them back from being more successful. And unfortunately, we proved Norm incorrect on that statement. That's why '18 -- '17, we did pretty good, '18 and '19 were very challenging. Third quarter in '19, we began to show that we had figured out this manufacturing deficiency, had corrected it and we actually had good capacity. Now all of this process is well documented. There's a lot of objectives that we monitor and measure. And so, we're very confident that we know what our capacity is. So we got well ahead of where we were, as you've seen the CapEx investments have been substantial in additional capacity.

好吧，我想回到開始。六年前的上週，我開始擔任 AAON 總裁。當我成為總裁時，我接管了所有的銷售、工程和製造工作，後台事務由 Norm 負責。當我走進公司大門時，Norm 對我說，公司生產的產品比我們銷售的產品還要多。因此，我開始與銷售渠道合作，以改善很多我知道阻礙他們取得更大成功的事情。不幸的是，我們證明了 Norm 的說法是錯誤的。這就是為什麼 '18 - '17，我們做得很好，'18 和 '19 非常具有挑戰性。在 19 年的第三季度，我們開始表明我們已經解決了這個製造缺陷，並糾正了它，我們實際上擁有良好的產能。現在所有這些過程都得到了很好的記錄。我們監控和衡量的目標有很多。因此，我們非常有信心知道我們的能力是多少。所以我們遠遠領先於我們所處的位置，因為你已經看到資本支出投資在額外產能方面是巨大的。

Let's just circle back to Longview for a second. We built a new building. And it won't be two years that it's been in production until February of '23, but they are now producing over double of what they produced prior to that new building. So we have put a lot of investment into manufacturing capacity. I felt certain that the demand was there for the equipment. The sales channel proved that way back there in '17-'18. And they continue to prove that. They've done a great job for us and we've listened to them intently on what product positioning should look like for them. What we can do for just adding capabilities that help them to close sales more efficiently. And so we've invested an awful lot in those aspects of the business and they're all finally coming to fruition. And you began to see it, like I said in fourth quarter of '19, but then the pandemic hit, and kind of slowed things down for us for a little while. So now we're able to -- the supply chain has thawed out a lot. It's not totally without strain, but it's substantially improved and we're able to ramp-up headcount along with the availability of these components that have been a little scarce from time-to-time. We already had the manufacturing infrastructure. So, all of these things are going to power us to increase production. And the demand is very solid. So like I say, if we were to reduce the backlog a little, it's not going to be because of reduced bookings, it's going to be because of increased production.

讓我們暫時回到朗維尤。我們蓋了一座新大樓。直到 2023 年 2 月，它才投入生產不到兩年，但他們現在的產量是新大樓之前的兩倍多。所以我們在製造能力上投入了大量的投資。我確信對設備有需求。早在 17-18 年，銷售渠道就證明了這一點。他們繼續證明這一點。他們為我們做了很好的工作，我們已經專心聽取了他們對他們的產品定位應該是什麼樣子的意見。我們可以做些什麼來增加幫助他們更有效地完成銷售的能力。因此，我們在業務的這些方面投入了大量資金，它們最終都取得了成果。你開始看到它，就像我在 19 年第四季度所說的那樣，但隨後大流行來襲，讓我們的事情放慢了一段時間。所以現在我們能夠 - 供應鏈已經解凍了很多。它並非完全沒有壓力，但它已經有了很大的改進，我們能夠增加員工人數以及這些不時有點稀缺的組件的可用性。我們已經擁有製造基礎設施。所以，所有這些都將推動我們增加產量。而且需求非常穩固。所以就像我說的，如果我們要稍微減少積壓，那不會是因為預訂減少，而是因為產量增加。

Your next question comes from the line of Julio Romero with Sidoti.

你的下一個問題來自 Julio Romero 與 Sidoti 的對話。

If you guys could just talk about the customer reception to the shift in pricing strategy to that 1% monthly.

如果你們能談談客戶對定價策略向每月 1% 的轉變的接受情況。

And secondly, is the order number you put up in the quarter kind of a cleaner order number with less noise, so to speak?

其次，可以說，您在四分之一中輸入的訂單號是否更清晰、噪音更小？

So let's talk about the 1% price increases. I took that advice from Norm. He had lived through inflationary times in the 70s, and had used that strategy once before and said it was very successful. We needed to kind of get -- we had to make some big moves to get back between the proper range, I call it between the guardrails. Once we felt certain that we were there, then, with inflation running roughly just short of 10%, I felt like 1% per month was very appropriate. So we did that. And our sales channel just really appreciates that. They said, it's very predictable. They know exactly what to expect and we have not yet shut that off, because inflation hasn't yet shut down. I mean, we're looking at wage rate increases, electronic component increases. While some raw materials have come down, the component cost have not. So, we feel like that we've got it handled really well with the 1% per month. And we'll probably continue that for a while yet until we see things strengthen and our margins a bit above historic, which very likely could happen in '23, if we're able to keep these price increases. We also look at the bookings rate to make sure that we've not slowed bookings down. And as you can see, with the increased backlog and the bookings the way they are we've not slowed down anything. So we're very satisfied with what we're doing on that price increase strategy.

因此，讓我們談談 1% 的價格上漲。我聽取了 Norm 的建議。他經歷過 70 年代的通貨膨脹時代，曾經用過這種策略，並說非常成功。我們需要有點——我們必須採取一些大動作才能回到適當的範圍內，我稱之為護欄之間。一旦我們確定我們在那裡，然後，隨著通貨膨脹率大約略低於 10%，我覺得每月 1% 是非常合適的。所以我們就這麼做了。我們的銷售渠道對此非常感激。他們說，這是非常可預測的。他們確切地知道會發生什麼，我們還沒有關閉它，因為通貨膨脹還沒有停止。我的意思是，我們正在考慮工資率的增加，電子元件的增加。雖然一些原材料已經下降，但組件成本卻沒有。所以，我們覺得我們已經很好地處理了每月 1% 的費用。我們可能會繼續這樣做一段時間，直到我們看到情況有所好轉並且我們的利潤率略高於歷史水平，如果我們能夠保持這些價格上漲，這很可能會在 23 年發生。我們還會查看預訂率，以確保我們沒有放慢預訂速度。正如您所看到的，隨著積壓和預訂的增加，我們並沒有放慢任何速度。所以我們對我們在漲價策略上所做的非常滿意。

And what was your second part, Julio?

你的第二部分是什麼，Julio？

Yeah. On the order number, I was just looking to see if my thought process is with the monthly price increase, it's very predictable, as you said, you would see less kind of spikes ahead of a price increase. So just trying to see if that order number is more indicative of underlying demand for at least on a relative basis than prior quarters?

是的。關於訂單號，我只是想看看我的思考過程是否與每月的價格上漲有關，這是非常可預測的，正如您所說，在價格上漲之前您會看到較少的尖峰。因此，只是想看看該訂單號是否至少在相對基礎上比前幾個季度更能說明潛在需求？

On a relative basis, it is. When we had 3%, 5%, 7%, 8% price increases, we saw a huge pull-forward. I mean, January 1 was just absurd. We saw a pull forward on that. It was in the not quite 200 million, high 100s that pulled forward. And that's what damaged our margins for so long therefore for a couple of three quarters. And so with the 1%, we're not seeing much pull-forward at all. It's fairly insignificant. It's not totally absent, but it's pretty insignificant. So I think that the bookings rate is normalized. I mean, this goes all the way back to June now. So that's several months that we've done that. And each month, our prediction, our projection actually from the sales department telling us what's going to happen, that's pretty much what's happening. We're not having any surprises on the high side or the low side.

在相對的基礎上，它是。當我們的價格上漲 3%、5%、7%、8% 時，我們看到了巨大的推動力。我的意思是，1 月 1 日真是荒謬。我們看到了這方面的進展。正是在不到 2 億、高 100 的情況下向前推進。這就是我們的利潤率長期受損的原因，因此持續了三個季度。因此，對於 1%，我們根本看不到太多的推動力。這是相當微不足道的。它並非完全不存在，但它非常微不足道。所以我認為預訂率已經正常化。我的意思是，這一直追溯到現在的六月。所以我們已經完成了幾個月。每個月，我們的預測，實際上來自銷售部門的預測告訴我們將要發生什麼，這幾乎就是正在發生的事情。我們在偏高或偏低方面都沒有任何意外。

And I guess, with that change in pricing strategy, talk about where you are with price cost alignment. I think you mentioned, some of those component costs are still if not rising, at least not coming down?

我想，隨著定價策略的改變，談談你在價格成本調整方面的進展。我想你提到過，其中一些組件成本即使沒有上升，至少也沒有下降？

Yeah. So we've put together an FPNA team. I'm very happy with the information they've been providing to all of us. It's something that we were probably in need of. If the market is very stable and FPNA team's job is pretty boring. It's when, it's so dynamic like it's been for the last couple of years that their value is just absolutely proven. With what they're telling me, our margins are going to continue to strengthen. What we see in 4Q looks like, we'll be well into that 28% to 32% range. And then, we might possibly see something a little stronger than that first quarter if things stay the way they are. So we'll just have to monitor this along, but I'm very confident that we're in that range and that we're capable of staying in that range.

是的。所以我們組建了一個 FPNA 團隊。我對他們向我們所有人提供的信息感到非常滿意。這可能是我們需要的東西。如果市場非常穩定並且 FPNA 團隊的工作很無聊。就在那時，它像過去幾年一樣充滿活力，它們的價值得到了絕對證明。根據他們告訴我的情況，我們的利潤率將繼續提高。我們在第四季度看到的情況是，我們將很好地進入 28% 到 32% 的範圍。然後，如果事情保持現狀，我們可能會看到比第一季度更強的東西。因此，我們只需要對此進行監控，但我非常有信心我們處於該範圍內，並且我們有能力保持在該範圍內。

And then just last one from me. You just mentioned on that higher margin backlog that's flowing through. What are your thoughts on the duration of that higher margin backlog, like how long does that tailwind potentially go on for you guys?

然後是我的最後一個。您剛剛提到了正在流經的更高利潤積壓訂單。你對高利潤積壓的持續時間有何看法，比如這種順風可能會持續多長時間？

Well, if you look at absolute run rate and absolute backlog, you're looking at about six months, it's in the house and orders have not slowed down a bit. Historically, the company had a bit of a bell curve on bookings, the first quarter and the fourth quarter were always a little slower than second and third quarter, we've not yet seen that. This has been a steady slope up. And I think a lot of that is the better product that we're putting together, like the cold climate capable air source heat pumps, the growth and opportunity as a result of acquiring BasX. All of these things are keeping that going forward and up. And with regards to the margin, again, we've got that margin where we want it, and it's going to continue to strengthen a bit.

好吧，如果你看絕對運行率和絕對積壓，你會看到大約六個月，它在房子裡，訂單並沒有放緩一點。從歷史上看，該公司的預訂量有點鐘形曲線，第一季度和第四季度總是比第二和第三季度慢一點，我們還沒有看到。這是一個穩定的上升趨勢。而且我認為其中很多是我們正在組裝的更好的產品，比如能夠適應寒冷氣候的空氣源熱泵，收購 BasX 帶來的增長和機遇。所有這些事情都在推動它向前發展。關於利潤率，我們再次獲得了我們想要的利潤率，而且它會繼續加強一點。

Your next question comes from the line of Jon Braatz with Kansas City Capital.

你的下一個問題來自 Jon Braatz 與 Kansas City Capital 的對話。

One question. You're moving a lot of products out the door and I think you indicated that headcount was up 18% in the quarter year-over-year. And as you look at the production opportunity or the sales opportunities going forward, what kind of additional headcount might you need for next year? Obviously, productivity is improving, but do you need that type of increase in headcount next year too?

一個問題。你正在把很多產品搬出門外，我想你表示本季度的員工人數同比增長了 18%。當您審視未來的生產機會或銷售機會時，明年您可能需要增加什麼樣的員工？顯然，生產率正在提高，但明年您是否也需要增加這種員工人數？

We're monitoring it based on -- so that the manufacturing facility as a whole has probably around 40% more surplus capacity as a whole. The headcount, we need to measure it, somewhere between 15% and 18% headcount is probably the maximum that you can measure in effectively. If you bring them in too fast, you'll either have turnover or you'll have low productivity. And as you've seen, we've measured in 18%, but our productivity has gone up. So our onboarding procedures, training procedures are much advanced over what they were a few years ago. So what we're monitoring now is supply chain. And as parts are available, then we're able to relay that to HR and say, bring us more people. And so we've kind of been ratcheting back and forth between the two as more parts are coming, that we're adding people. So I think our limiting factor in '23 is two-fold. I don't want to add people so fast that we become inefficient. That's number one. And number two is I don't want people standing around without parts to put together.

我們正在對其進行監控——因此整個製造設施的過剩產能可能會增加 40% 左右。我們需要衡量員工人數，介於 15% 和 18% 之間的員工人數可能是您可以有效衡量的最大值。如果你把它們帶進來太快，你要么會有營業額，要么你的生產率會很低。正如您所見，我們的測量結果為 18%，但我們的生產率卻提高了。因此，我們的入職程序、培訓程序比幾年前先進得多。所以我們現在監控的是供應鏈。當零件可用時，我們就可以將其轉達給人力資源部並說，給我們帶來更多的人。因此，隨著更多部分的到來，我們一直在兩者之間來回調整，我們正在增加人員。所以我認為我們在 23 年的限制因素是雙重的。我不想加人太快以至於效率低下。這是第一。第二是我不希望人們站在那裡沒有零件可以組裝。

Now, we manufacture a very high content of our equipment. One of the things that go back four or five years ago, we bought WattMaster Corporation, now called AAON Controls. They're in Parkville, Missouri, not far from you. And we challenged them with designing and building more of the electronic components in our units than what they had historically supplied to us and they've been very successful with that. They keep moving forward with that. So we have a better handle on that set of components than we ever have had in the past. The next thing was that our fan manufacturer that we were buying 35,000, 40,000 fans a year, we were able back in late April to purchase from them the intellectual property, tooling, all the fixtures, along with instructions. They're teaching us how to build the fans. So we're starting to build fans in Tulsa here, in another month or so. Slowed down a little bit by some of the major equipment we had to purchase to do that. Those people had supply chain issues. And ironically, our purchasing department went to bat for them, and got them some of the parts to build our equipment for us, which I thought was fun, and pretty innovative. And so, they're getting these big pieces of equipment to us probably three months ahead of what they had told us not so long ago.

現在，我們製造了非常高含量的設備。其中一件事情可以追溯到四五年前，我們收購了 WattMaster Corporation，現在稱為 AAON Controls。他們在密蘇里州帕克維爾，離你不遠。我們向他們提出挑戰，要求他們在我們的設備中設計和製造比他們過去提供給我們的更多的電子元件，他們在這方面非常成功。他們繼續前進。因此，我們比以往任何時候都更好地處理了這組組件。接下來是我們每年購買 35,000、40,000 颱風扇的風扇製造商，我們能夠在 4 月下旬從他們那裡購買知識產權、工具、所有固定裝置以及說明書。他們正在教我們如何培養粉絲。因此，再過一個月左右，我們將開始在塔爾薩培養粉絲。由於我們必須購買一些主要設備才能做到這一點，所以速度有所放慢。那些人有供應鏈問題。具有諷刺意味的是，我們的採購部門為他們爭取到了一些零件，為我們製造了我們的設備，我認為這很有趣，而且很有創意。因此，他們將這些大型設備交付給我們可能比他們不久前告訴我們的提前了三個月。

But being able to build our own fans is another thing that we can control a lot of the supply questions on. So we continue to look at vertical integration, what else is being constrained? What else can we do? And we're very creative and innovative with that. We're going to continue to do that. And some of our 2023 CapEx is going to be dedicated towards that exact quest is increasing our manufactured content even more.

但是能夠建立我們自己的粉絲是我們可以控制很多供應問題的另一件事。所以我們繼續看垂直整合，還有什麼是被制約的？我們還能做什麼？我們對此非常有創意和創新。我們將繼續這樣做。我們 2023 年的一些資本支出將專門用於這個確切的任務，即進一步增加我們的製造內容。

Okay. Gary, one other question. Obviously, BasX had a good quarter, looks very, very strong. And maybe incorrectly I thought BasX more as a data center company, but you talked a little bit about the semiconductor opportunities? Is that something that is sort of new and emerging and have they done a lot of work with semiconductor manufacturers before?

好的。加里，另一個問題。顯然，BasX 有一個很好的季度，看起來非常非常強大。也許我錯誤地認為 BasX 更多是一家數據中心公司，但你談到了半導體機會？這是一種新興的東西嗎？他們之前是否與半導體製造商做過很多工作？

Well, actually, the founders' heritage was from semiconductor. Dave Benson began his career with Intel. And when he left Intel, he went to Brod & McClung PACE Company in Portland, and built units for Intel. So I would say he's got around five decades of experience with semiconductor. I don't have the number off the top of my head, but I think they've been doing about 30% to 35% of their revenue with semiconductor and clean rooms and that is something that is accelerating. The alignment with AAON is allowing some of those -- to see those companies buy huge, huge orders at a time. And previously if they wanted to give them an order that they were capable of technologically building, but maybe not physically building because they didn't have enough physical infrastructure to do it. So now they've got more infrastructure, the new building they built just prior to us purchasing them helped that. And then the legacy AAON facilities helped that a little bit too. So, this is something that's a very, very good opportunity for them. They have very high regard in the industry for their abilities. And now, they've got a strong foundation underneath them that will allow us to capitalize on those.

好吧，實際上，創始人的遺產來自半導體。 Dave Benson 的職業生涯始於英特爾。離開英特爾後，他去了波特蘭的 Brod & McClung PACE 公司，為英特爾製造設備。所以我想說他在半導體方面有大約五年的經驗。我不知道具體數字，但我認為他們已經將大約 30% 到 35% 的收入用於半導體和無塵室，而且這種情況正在加速。與 AAON 的結盟讓其中一些——看到這些公司一次購買大量、大量的訂單。以前，如果他們想給他們一個訂單，他們有能力在技術上建造，但可能不會在物理上建造，因為他們沒有足夠的物理基礎設施來做。所以現在他們有了更多的基礎設施，他們在我們購買他們之前建造的新大樓幫助了這一點。然後，遺留的 AAON 設施也對此有所幫助。所以，這對他們來說是一個非常非常好的機會。他們的能力在業界享有很高的評價。現在，他們已經有了堅實的基礎，這將使我們能夠利用這些基礎。

If things continue well for BasX, in combination with your legacy business, do they have the footprint to, let's say, double sales?

如果 BasX 的事情繼續順利，結合您的傳統業務，他們是否有足夠的足跡，比方說，雙倍的銷售額？

Easily. What we're able to do for them in Longview, just in the data center itself doubles their sales.

容易地。我們在朗維尤能夠為他們做的，僅僅是在數據中心本身，他們的銷售額就翻了一番。

There are no further questions at this time. I'd like to turn the callback to Mr. Joe Mondillo for closing remarks.

目前沒有其他問題。我想將回撥給 Joe Mondillo 先生作結束語。

All right. I'd like to thank everyone for joining on today's call. If anyone has any questions over the coming days and weeks, please feel free to reach out to myself. Have a great rest of the day. And we look forward to speaking with you in the future. Thank you.

好的。我要感謝大家參加今天的電話會議。如果有人在接下來的幾天和幾週內有任何疑問，請隨時與我聯繫。好好休息一天。我們期待著在未來與您交談。謝謝。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。