Aaon Inc (AAON) 2024 Q1 法說會逐字稿

Good evening, ladies and gentlemen, and welcome to the Aaon Inc., Q1 2024 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, May 2, 2024.

女士們、先生們，晚上好，歡迎參加 Aaon Inc. 2024 年第一季財報電話會議。 （操作員說明）此通話錄音時間為 2024 年 5 月 2 日星期四。

I now would like to turn the conference over to Joseph Mondillo, Director of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係總監 Joseph Mondillo。請繼續。

Thank you, operator, and good afternoon, everyone. Saw the press release announcing our first quarter financial results was issued after market close today and can be found on our web corporate website, AON. dot com. The call today is accompanied with a presentation that you can also find on the website as well as on listen only webcast.

謝謝接線員，大家下午好。看到今天收盤後發布的宣布我們第一季財務業績的新聞稿，可以在我們的企業網站 AON 上找到。 .com。今天的電話會議附帶了一個演示文稿，您也可以在網站上以及僅收聽網路廣播中找到該演示文稿。

Please go to slide 2 in the presentation, 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 and Exchange Act of 1934 each as amended.

請前往簡報中的投影片 2，我們在電話會議期間開始執行慣例的前瞻性聲明政策。任何涉及非歷史資訊的聲明均被視為前瞻性聲明，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》各修訂版的安全港條款作出。

As such, it is subject to the occurrence of many events outside AAON's control that could cause AAON's results to differ material materially from those anticipated. You are all aware of the inherent difficulties, risks and uncertainties in making predictive statements in our press release and Form 10-Q that we filed this afternoon detailed some of the important risk factors that may cause our actual results differ from those in our predictions.

因此，許多 AAON 無法控制的事件的發生可能會導致 AAON 的結果與預期產生重大差異。你們都知道在我們的新聞稿和我們今天下午提交的10-Q 表格中做出預測性陳述的固有困難、風險和不確定性，詳細說明了一些可能導致我們的實際結果與我們的預測不同的重要風險因素。

Please note that we do not have the duty to update our forward-looking statements. Our press release and portions of today's call will use non-GAAP financial measures as defined in Regulation G, you can find the related reconciliations to GAAP measures in our press release and presentation. Joining me on today's call is our CEO, Gary Fields, our President and COO, Matt Barsky, our and our CFO and Treasurer, Rebecca Thompson. Gary will provide some opening remarks.

請注意，我們沒有義務更新我們的前瞻性陳述。我們的新聞稿和今天電話會議的部分內容將使用 G 條例中定義的非 GAAP 財務指標，您可以在我們的新聞稿和簡報中找到與 GAAP 指標相關的調整表。參加今天的電話會議的有我們的執行長加里‧菲爾茲(Gary Fields)、我們的總裁兼營運長馬特‧巴爾斯基(Matt Barsky)、我們的財務長兼財務主管麗貝卡卡·湯普森(Rebecca Thompson)。加里將發表一些開場白。

Matt will then provide some commentary on the operations, followed by Rebecca, who will walk through the financials, and we'll finish with Gary, who will update you on the outlook before opening it up to Q&A.

然後馬特將提供一些有關營運的評論，麗貝卡將介紹財務狀況，最後我們將由加里結束，他將在進行問答之前向您介紹最新的前景。

With that, I will turn the call over to Gary.

這樣，我會將電話轉給加里。

Good afternoon. Let's start on Slide 3. First quarter performance was mixed relative to our expectations. Bookings remained strong and were in line with our expectations. This was consistent across all three of our segments total backlog increased for a second straight quarter compared to a year ago, it was down just 6.9%, which is positive considering how abnormally large backlog was with supply chain issues were it adversely affecting our lead times.

午安.讓我們從投影片 3 開始。預訂量依然強勁，符合我們的預期。與一年前相比，我們所有三個部門的總積壓量連續第二個季度增加，這一點是一致的，僅下降了6.9%，考慮到供應鏈問題造成的積壓量異常大，這對我們的交貨時間產生了不利影響，這是正面的。

Sales and earnings were a little soft to start the year due to lighter than expected volumes. A large factor to this was timing of backlog conversion at our A. on core products and basics segments. Order trends at both segments remained solid, though, and backlogs at both increased substantially throughout the quarter. In addition, beyond what is currently in the backlog, both have significant opportunities with the data center market.

由於銷售低於預期，年初銷售和利潤略有疲軟。造成這種情況的一個重要因素是我們 A. 核心產品和基礎部門積壓訂單轉換的時間。不過，這兩個領域的訂單趨勢仍然穩健，整個季度的積壓訂單都大幅增加。此外，除了目前積壓的訂單之外，兩者都在資料中心市場上擁有重大機會。

Thus, while these two segments were a large reason for the soft result in the first quarter. We are very confident both will improve going forward despite volumes and production levels being down in the quarter, profit margins were better than we expected. We've executed well from a price cost perspective, while at the same time strategically balancing the price premium of our equipment.

因此，這兩個細分市場是第一季業績疲軟的重要原因。我們非常有信心，儘管本季銷量和生產水平有所下降，但兩者都會在未來有所改善，但利潤率好於我們的預期。從價格成本的角度來看，我們執行得很好，同時策略性地平衡了我們設備的溢價。

Now I'd like you to turn to Slide 4. Looking forward, we remain cautiously optimistic on the near term while maintaining a bullish outlook on the long term, our traditional markets remain stable despite high interest rates and other economic headwinds. The sentiment amongst our channel partners is positive and all indications lead us to believe there is strong level of activity within the market. We still think orders could be volatile this year due to the refrigerant transition.

現在我希望你們轉向投影片 4。我們的通路夥伴的情緒是正面的，所有跡像都讓我們相信市場內的活動量很高。我們仍然認為，由於冷媒的轉型，今年的訂單可能會出現波動。

However, we also think as we progress further into the year and approach the point in time in which will we will be unable to accept orders for our forte and a equipment it is likely we see a short-term wave of orders related to projects already designed for 410 A. refrigerant. At the same time, we are well positioned to take advantage of customers who are seeking the new refrigerant equipment as we are currently accepting orders for a comparable price for T&I equipment.

然而，我們也認為，隨著今年的進一步進展，接近我們將無法接受我們的強項和設備訂單的時間點，我們很可能會看到與已經存在的項目相關的短期訂單浪潮專為410 A 冷媒而設計。同時，我們處於有利位置，可以充分利用正在尋求新型冷媒設備的客戶，因為我們目前正在接受價格相當的 T&I 設備訂單。

We are also strategically positioned from a pricing and product development standpoint, our narrower price premium makes us more competitive. And all indications tell us we're going to be even more competitive from a cost of manufacturing perspective as the markets transition to the lower GWP refrigerants.

從定價和產品開發的角度來看，我們也進行了策略定位，我們較小的溢價使我們更具競爭力。所有跡像都告訴我們，隨著市場轉向全球升溫潛能值較低的冷媒，從製造成本的角度來看，我們將更具競爭力。

As far as product development, the advancements of our fully electric heat pump technology, Alfa class branded products positions us extremely well as the industry begins to focus more and more on electrification. Earlier this month, the department Department of Energy announced a program to expedite development and adoption of cold climate commercial heat pump rooftop units on already has a considerable lead in the advancement of this technology, which will allow us to capitalize on early adopters.

就產品開發而言，隨著行業開始越來越關注電氣化，我們的全電動熱泵技術的進步以及阿爾法級品牌產品使我們處於極其有利的地位。本月早些時候，能源部宣布了一項計劃，以加快寒冷氣候商業熱泵屋頂機組的開發和採用，該技術在該技術的進步方面已經具有相當大的領先優勢，這將使我們能夠利用早期採用者的優勢。

Initially, this will most likely be large corporations with wide-ranging footprints of buildings, which would potentially make this a big opportunity for us beyond our traditional markets, we are increasingly excited about the data center market and how we can capitalize on the growth cycle of this end market pipeline of work over the next several years is immense and current activity is moving at an aggressive pace. Our engineering and sales teams are executing at a first-class rate.

最初，這很可能是擁有廣泛建築物足跡的大公司，這可能使這對我們來說是傳統市場之外的一個巨大機會，我們對資料中心市場以及如何利用成長週期越來越興奮未來幾年，終端市場的工作量將是巨大的，並且當前的活動正在以積極的速度進行。我們的工程和銷售團隊正在以一流的速度執行任務。

All the feedback we are receiving from our customers leads us to believe we are in the midst of becoming the best in class solutions provider for both airside and liquid cooling applications to best capitalize. We are working diligently to increase our capacity, ensuring we maximize our opportunities.

我們從客戶那裡收到的所有回饋使我們相信，我們正在成為空氣側和液體冷卻應用領域一流的解決方案提供商，以實現最佳資本化。我們正在努力提高我們的能力，確保我們最大限度地利用我們的機會。

I'll now hand over the call to Matt to Balsky, who will speak more in depth about our operational strategy.

我現在將把馬特的電話轉交給巴爾斯基，他將更深入地談論我們的營運策略。

And thank you, Gary. If you will, please turn to Slide 5. We utilized this slide in our Q4 call, but the only difference being we've added a six slice to the pie, which is our data center solutions. Data center vertical has been an integral factor to the robust growth for the basic segment has realized over the last several years, we expect this market will become an even larger part of the overall organization going forward, given the current makeup of backlog and the pipeline of future opportunities over the last six to nine months with the advancements of semiconductor chip technology and the anticipation of increased computing demand fueled by artificial intelligence, data center companies have accelerated their construction plans aggressively over this time.

謝謝你，加里。如果您願意，請前往投影片 5。垂直資料中心一直是過去幾年基本細分市場實現強勁成長的不可或缺的因素，考慮到目前的積壓和管道的組成，我們預計該市場將成為整個組織的更大組成部分。技術的進步以及人工智慧推動運算需求增加的預期，過去六到九個月的未來機遇，資料中心公司在這段時間積極加快了建設計劃。

And engineering and operational teams have been diligently working with customers helping them design solutions to fulfill their ambitious goals. Given the capacity and density of these new AI. data centers, customers are looking for providers who can develop unique airside and liquid cooling solutions. This type of custom engineering is exactly what basis core is all about and is what sets us apart from most in the industry with assistance from the rest of our operational teams.

工程和營運團隊一直在努力與客戶合作，幫助他們設計解決方案來實現他們的宏偉目標。考慮到這些新人工智慧的容量和密度。資料中心，客戶正在尋找能夠開發獨特的空氣側和液體冷卻解決方案的供應商。這種類型的客製化工程正是基礎核心的全部內容，也是我們在其他營運團隊的協助下從業內大多數公司中脫穎而出的原因。

We have executed nearly flawlessly recently leading big impressions with some of the biggest customers in the industry. From my point of view, considering our success in this market to date, we are positioned to be the best-in-class provider for this market in preparation of supplying the increased demand our data center customers require we've been aggressively investing in new capacity.

最近，我們幾乎完美地給一些業內最大的客戶留下了深刻的印象。從我的角度來看，考慮到我們迄今為止在這個市場上取得的成功，我們有能力成為這個市場的一流提供商，準備滿足我們資料中心客戶不斷增長的需求，我們一直在積極投資於新的容量。

The two primary projects that have been underway since last year include expansions of our Redmond facility in our Longview, Texas facility. In total, the two projects will increase the overall company's total manufacturing square footage by approximately 15%. So given the scale of some of the orders we anticipate we expect the increased capacity in terms of revenue to be much greater than 15%. Both projects are on schedule.

自去年以來一直在進行的兩個主要項目包括擴建位於德克薩斯州朗維尤的雷德蒙德工廠。總的來說，這兩個項目將使該公司的總製造面積增加約 15%。因此，考慮到我們預期的一些訂單的規模，我們預計產能增加的收入將遠大於 15%。兩個項目均按計劃進行。

The regimen expansion is expected to be finished by the end of Q3 of this year in the Longview expansion expected to be complete by the end of this year. The rest of our growth strategy is also progressing our product development continues to lead the industry. Currently much of the industry is consumed with meeting the upcoming low GWP refrigerant requirements.

Longview 擴建預計將於今年底完成，該方案擴建預計將於今年第三季末完成。我們的成長策略的其餘部分也在進步，我們的產品開發繼續領先於行業。目前，該行業的大部分精力都花在滿足即將到來的低全球升溫潛能值冷媒要求。

Meanwhile, we've had our complete portfolio of equipment offering with the new refrigerant since the start of this year. We are also well ahead of the industry with the advancement of heat commercial heat pump technology. We are the only company in the commercial market with a portfolio of fully electric heat pump powered rooftop units that are operable down to zero degrees and being the first to market with this technology is going to position us to fully benefit from the increasing demand to decarbonize and electrify buildings. Our complete portfolio of rooftop units, including the cold climate heat pump configurations, provide us with a big opportunity with national accounts.

同時，自今年年初以來，我們已經擁有了採用新型冷媒的完整設備組合。隨著熱商用熱泵技術的進步，我們也遠遠領先產業。我們是商業市場上唯一一家擁有可在零度運行的全電動熱泵動力屋頂機組產品組合的公司，並且率先將這項技術推向市場將使我們能夠充分受益於日益增長的脫碳需求並使建築物電氣化。我們完整的屋頂機組產品組合，包括寒冷氣候熱泵配置，為我們提供了國民帳戶的巨大機會。

Lastly, our already world-class sales channel continues to strengthen, which is going to be integral to our continued growth and market share goals. The consolidation of the channel is helping accelerate the sharing of best practices in our increased support through marketing, parts and service will further help our reps become more successful in penetrating the market altogether we expect these strategies will allow us to continue to gain market share over the coming years.

最後，我們已經世界一流的銷售管道繼續加強，這將成為我們持續成長和市場份額目標不可或缺的一部分。通路的整合有助於加速分享我們透過行銷、零件和服務增加支持的最佳實踐，這將進一步幫助我們的代表在打入市場方面更加成功，我們預計這些策略將使我們能夠繼續獲得市場份額未來幾年。

In conclusion, we have a sound growth strategy that the team is executing upon the IA on culture has never been so strong. Operations are running at some of the highest efficiency levels in years. And overall, I could not be more pleased with the progress we've been making and the extensive opportunities we have going forward.

總之，我們有一個健全的成長策略，團隊正在執行的文化IA從未如此強大。目前營運效率處於多年來最高水準。總的來說，我對我們所取得的進展和未來的廣泛機會感到非常滿意。

And with that, I will hand it off to Rebecca to walk through financials.

接下來，我會將其交給麗貝卡（Rebecca），讓她了解財務狀況。

Thank you, Matt. Please turn to slide 6 net sales declined 1.4% to $262.1 million from $266 million. Volumes were down 5.7%, partially offset by pricing, which contributed 4.3%. The decline in volumes are driven by the A. and coil products and basic segments, which realized total sales declines of 27.4% and 9.3% respectively. Both segments had strong backlogs entering the quarter compared to a year ago.

謝謝你，馬特。請參考投影片 6，淨銷售額下降 1.4%，從 2.66 億美元降至 2.621 億美元。銷售量下降 5.7%，部分被定價所抵消，定價貢獻了 4.3%。銷量下降是由 A. 和捲材產品以及基本細分市場推動的，其總銷售額分別下降了 27.4% 和 9.3%。與去年同期相比，進入本季這兩個部門的積壓量都很大。

So the revenue declines that both were largely based on timing of backlog conversion to a on Oklahoma segment realized an increase in total sales of 4%. Volumes at this segment were down modestly, which was a result of a much smaller backlog at the beginning of the quarter compared to a year ago. This segment also endured some volatility in orders throughout the quarter, resulting in an almost flat backlog and also partially contributing to the lower volumes.

因此，收入下降主要是由於積壓訂單轉換到俄克拉荷馬州部分的時間而導致總銷售額增加了 4%。該細分市場的銷量略有下降，這是由於本季度初的積壓訂單比一年前少得多。該部門整個季度的訂單也出現了一些波動，導致積壓訂單幾乎持平，也是銷售下降的部分原因。

Moving to Slide 7. Gross profit increased 19.6% to $92.2 million from $77.2 million as a percentage of sales, gross profit was 35.2% compared to 29% in the first quarter of 2023. Improvement in gross profit margin was primarily a result of increased pricing and moderating cost material cost inflation offset slightly by higher labor costs.

轉向投影片 7。成本材料成本通膨的放緩被勞動成本上升所略微抵銷。

Please turn to Slide 8. Selling, general and administrative expenses increased 37.5% to $45.3 million from $32.9 million in the first quarter of 2023. As a percentage of sales, SG&A increased to 17.3% from 12.4%. The increase relative to sales is primarily attributable to the lower volumes, increased employee compensation, incremental investments we've made in technology and increased professional legal fees. Overall SG&A expenses were in line with our expectations.

請參閱投影片 8。相對於銷售額的成長主要歸因於銷售下降、員工薪資增加、我們在技術方面的增量投資以及專業法律費用的增加。整體銷售、管理及行政費用符合我們的預期。

Moving to Slide 9. Diluted earnings per share was $0.46, slightly up from a year ago. Included in the net results was an excess tax benefit of $4.4 million from the share-based compensation within the quarter. For the remainder of the year, we anticipate an effective tax rate excluding discrete events in a range of 25% to 26%.

轉到幻燈片 9。淨業績中包括本季股權激勵帶來的 440 萬美元超額稅收優惠。對於今年剩餘時間，我們預計不包括離散事件的有效稅率在 25% 至 26% 之間。

Starting to slide 10, our balance sheet remains strong. Cash, cash equivalents and restricted cash totaled $28.4 million. Our March 31, 2024 debt at the end of the quarter was zero. Cash flow from operations in the first quarter was $92.4 million up from $4.8 million in the comparable quarter a year ago. Working capital at the end of the first quarter declined $15.1 million or 5.4% from a year ago, resulting in better cash conversion.

開始下滑 10，我們的資產負債表依然強勁。現金、現金等價物和限制性現金總計 2,840 萬美元。截至 2024 年 3 月 31 日，本季末我們的債務為零。第一季營運現金流為 9,240 萬美元，高於去年同期的 480 萬美元。第一季末的營運資本比去年同期減少 1,510 萬美元，即 5.4%，從而實現了更好的現金轉換。

Capital expenditures, including expenditures related to software development, increased 33% to $38.7 million, even with the higher CapEx budget. We were fully able to pay down our line of credit and finance the quarterly dividend while marginally increasing our cash cash position. All in our financial position is strong, allowing us to fully capitalize on growth opportunities.

即使資本支出預算較高，包括與軟體開發相關的支出在內的資本支出仍增加了 33%，達到 3,870 萬美元。我們完全有能力償還信貸額度並為季度股息提供資金，同時略微增加我們的現金部位。我們的財務狀況非常強勁，使我們能夠充分利用成長機會。

With that, I'll now turn the call back over to Gary.

這樣，我現在將把電話轉回給加里。

Operator, I think we may have some drop, Gary, potentially.

接線員，我想我們可能會有一些下降，加里，潛在的。

Yes.

是的。

I'm just going to I'm just going to finish out the closing remarks and then we can open it up to Q&A. Can we please turn to slide 11? All in all we feel very good where we are currently. For the last several years, we've made major strides in transforming this company from a niche application based provider to a mainstream solutions provider for the last two years, we've really substantial growth and have captured market share. In our view, though, we've just started to scratch the surface, many of the changes we've made from a business management perspective to sales and marketing to product development has yet to be fully realized.

我只是要完成結束語，然後我們就可以進行問答。我們可以翻到投影片 11 嗎？總而言之，我們目前的處境感覺非常好。在過去的幾年裡，我們在將這家公司從基於利基應用程式的提供者轉變為主流解決方案提供者方面取得了重大進展。了市場佔有率。但在我們看來，我們才剛開始觸及表面，從業務管理角度到銷售和行銷再到產品開發，我們所做的許多改變尚未完全實現。

We have the best product by far the best, but for the best value these changes will leverage that and propel our share gains further to add to that, the magnitude of opportunities we have within the data center market leaves me with a little little doubt we will be able to achieve our long-term goal of 10% plus annual revenue growth in the near term, following two very strong years for Aon in a time when the economy is slowing and we're proceeding in election. We expect growth to temporarily moderate. But for the reasons previously stated that this does not concern me it.

我們擁有迄今為止最好的產品，但為了實現最佳價值，這些變化將利用這一點並進一步推動我們的份額增長，除此之外，我們在數據中心市場中擁有的機會的規模讓我有點懷疑我們繼怡安在經濟放緩和選舉即將進行之際經歷了兩年非常強勁的表現之後，我們將能夠在短期內實現我們年收入增長 10% 以上的長期目標。我們預計成長將暫時放緩。但由於前面所說的原因，這與我無關。

If I have any questions any concern at all? It will be we can it would be we can we can we can we continue to build capacity quick enough in an efficient manner to keep up with the growth we foresee in 2024, we are now looking for volume to be down low single digits to flat. We anticipate year-over-year comps for volume would improve throughout the year with much of the improvement occurring in the second half.

如果我有任何疑問，有什麼問題嗎？這將是我們可以的，我們可以繼續以有效的方式快速建立能力，以跟上2024年我們預見的增長，現在我們正在尋找量的量。我們預計全年銷售量年比較將有所改善，其中大部分改善發生在下半年。

We continue to anticipate pricing will be in a mid single digit contributor and that gross margin will be up year over year for SG&A as a percent of sales, we now anticipate a 50 basis points to 100 basis points increase and we maintain our CapEx guidance of $125 million for the second quarter. We anticipate sales will be comparable to the same period a year ago, and EPS will be moderate modestly down.

我們繼續預期定價將在中個位數貢獻，SG&A 毛利率佔銷售額的百分比將同比上升，我們現在預計增長 50 個基點到 100 個基點，我們維持資本支出指導第二季度為 1.25 億美元。我們預期銷售額將與去年同期相當，每股盈餘將小幅下降。

In closing, we just wanted to finish by thanking all of our employees, sales, channel partners and customers. Thank you to our shareholders. This company has never been more well-managed than it is today, and we look forward to generating returns that you expect for us.

最後，我們只想感謝所有員工、銷售人員、通路夥伴和客戶。感謝我們的股東。這家公司從未像今天這樣管理得如此完善，我們期待為我們帶來您所期望的回報。

We can now open up the call for Q&A. Operator?

我們現在可以開放問答環節。操作員？

Chris Moore, CJS.

克里斯摩爾，CJS。

Thanks, guys. Thanks for taking a couple of questions. Jim, maybe we could start with basic so obviously, it looks like the timing, our basics backlog conversion and contributed to a softer quarter. It's hard to gauge on kind of quarter to quarter on on basics. Can you give any sense in terms of, you know, basics as a as a piece of the backlog as a percentage. Has that changed much over the last year or just kind of how we should be thinking about that?

多謝你們。感謝您提出幾個問題。吉姆，也許我們可以從基本的開始，所以顯然，看起來時機，我們的基本積壓轉換並促成了一個疲軟的季度。很難根據基本情況來衡量季度與季度的情況。您能否以百分比形式給出基礎知識的任何意義？去年這種情況是否發生了很大變化，或者我們該如何思考這一點？

Yes, of course, Chris, a great question. And certainly from a contribution of basic from the backlog, I guess the simple way to kind of look at it. We talked during the last quarter call kind of on the '23 kind of performance, which was basically as a whole in '23 was approximately 10% of the overall revenue within the enterprise, but contributed 20% to bookings for the year for, I should say sorry, 20% of that bookings for the year. And as we look forward and kind of this quarter and beyond, we're continuing to see that if not more contribution from the basics backlog.

是的，當然，克里斯，這是一個很好的問題。當然，從積壓的基本貢獻中，我想這是一種簡單的看待它的方法。我們在上個季度的電話會議中談到了 23 年的業績，基本上在 23 年整體上約佔企業總收入的 10%，但為當年的預訂貢獻了 20%，我應該說抱歉，今年預訂量的20%。當我們展望本季及以後的情況時，我們將繼續看到基礎積壓的貢獻（如果不是更多的話）。

And so we certainly see there being a lot of strength within the basics backlog and really also kind of helping drive the coil products business data along the as well as we kind of start to really engage to get the basics product built down there as we continue the expansion with data center products. So it certainly is going to become more and more relevant going forward as a percentage of the overall revenue of Aon and definitely see it contributing, it's substantially greater growth kind of on a year annualized basis compared to legacy business.

因此，我們當然看到基礎積壓中存在很大的優勢，並且實際上也有助於推動線圈產品業務資料的發展，隨著我們繼續，我們開始真正參與在那裡建立基礎產品資料中心產品的擴展。因此，它在怡安總收入中所佔的比例肯定會變得越來越重要，而且肯定會看到它的貢獻，與傳統業務相比，它的年化增長要大得多。

Yes, done as we've gone through. So I think we have stated before that basics had been about 10% of our total revenues and we expected of at some point not too far in the future, that would be closer to 20% because they were growing so rapidly.

是的，正如我們所經歷的。因此，我認為我們之前已經說過，基礎業務約占我們總收入的 10%，我們預計在不久的將來，這一比例將接近 20%，因為它們增長如此之快。

Got it. No, that makes sense for sure. I think one of the things you talked about, Gary, in your prepared remarks was that the order flow will improve further improve at the point in time this year that customers no longer able to order equipment with the or for 10 A. refrigerant, you have give a kind of a best guess as to when that point?

知道了。不，這肯定有道理。加里，我認為您在準備好的發言中談到的一件事是，訂單流程將在今年的某個時間點進一步改善，客戶將不再能夠訂購使用 10 A 或 10 A 冷媒的設備，您已經對那個時間點給了一個最佳猜測嗎？

It's going to be a bit dependent on lead time for this reason, you cannot deliver equipment with for 10 A., our type of equipment beyond December 31. So if you say well, I want to have a two or three week buffer between December 31 and the last unit at produce just to make sure I don't have some kind of step milestone moment and you have roughly a 10 week lead time. So let's just put that at 12 weeks of just back at 12 weeks from the end of the year, and that's got to be the absolute cut-off.

由於這個原因，這將有點依賴於交貨時間，您無法在12 月31 日之後交付10 A 的設備，我們的設備類型。三週的緩衝時間31 號和生產的最後一個單元只是為了確保我沒有某種里程碑時刻，並且您有大約 10 週的交付時間。因此，讓我們將其定為今年年底 12 週的第 12 週，這一定是絕對的截止日期。

Well, we're going to trying to push people towards a cut off ahead of that so that we don't end up with a problem. The problem could be, and I've heard other manufacturers talk about this. If we get a surge of orders, people wanted to get for 10 a. the last minute, then the lead times could easily bump out and then where you add so this is a it's kind of an unusual situation that we've not really encountered before when we had a refrigerant change before there was no building codes associated with at this time, there's building codes next set necessary in order to utilize the new refrigerant while there's also additional expense in the buildings.

好吧，我們將嘗試在此之前將人們推向中斷，這樣我們就不會遇到問題。問題可能是，我聽其他製造商談論過這個。如果我們的訂單激增，人們就會想要 10 個訂單。最後一分鐘，那麼交貨時間很容易就會超出，然後你就可以在哪裡添加，所以這是一種不尋常的情況，我們以前沒有真正遇到過，當時我們在沒有與建築規範相關的建築規範之前更換了冷媒。

And I think that's driving some people that say well, I'll just go ahead and get for 10 a. because I don't have to have this additional expense for these refrigerant management out strategies that are required by this new code. So just to summarize that, I would say somewhere in August, we're probably going to see a surge.

我認為這促使一些人說，好吧，我就直接去買 10 塊錢吧。因為我不必為新法規所需的這些冷媒管理策略支付額外費用。總而言之，我想說在八月的某個時候，我們可能會看到激增。

Got it. That's very helpful. And maybe just a last one to kind of follow up on the point you just made in terms of the increased costs, it sounds like you guys are in really good shape from from that perspective. The My understanding is that the new refrigerant requirements are really not going to cost. And any more you have the new safety device that you'll have to it include with Apple, you're manufacturing that internally. So it sounds like from a competitive standpoint, you should be in really good position for this changeover. And am I looking at that correctly?

知道了。這非常有幫助。也許只是對您剛才提出的成本增加這一點進行跟進的最後一個，從這個角度來看，聽起來你們的狀況非常好。我的理解是，新的冷媒要求確實不會增加成本。如果你擁有 Apple 附帶的新安全裝置，你需要在內部製造它。因此，從競爭的角度來看，您應該在這次轉變中處於非常有利的位置。我的看法正確嗎？

Yes, I think so. And as we went through unit by unit of that. That holds true for vast majority. There's there's cases in there where we lost capacity when we converted. And so you've got to add something to get more capacity. That's not across the board. It's not prevalent, but it does appear here and there on certain size units. But I think mostly the way we portrayed that is correct.

是的，我想是這樣。當我們逐個單元地進行這些操作時。對絕大多數人來說都是如此。在某些情況下，我們在轉換時會失去容量。所以你必須添加一些東西來獲得更多的容量。這並不是一刀切的。它並不普遍，但它確實出現在某些尺寸單位上。但我認為我們描述的方式大多是正確的。

Yes. Alright. I appreciate it, guys. I'll jump back in line.

是的。好吧。我很感激，夥計們。我會跳回隊列。

Ryan Merkel, William Blair.

瑞恩·梅克爾、威廉·布萊爾。

Thanks. Good afternoon. Gary, it sounds like the big issue this quarter, the timing of backlog conversion, can you unpack what happened with production this quarter and when did the production issues hit you? Exactly?

謝謝。午安.加里，這聽起來像是本季的大問題，即積壓訂單轉換的時間，您能否解釋一下本季生產中發生的情況以及生產問題何時發生？確切地？

Well, actually, each month had something just a little different at those two factories on that. So we saw January wasn't too bad towards the end of January. We had some weather events of that that hit us more in basics than it did anywhere else. But more prevalently was it hit some of our customers and our customers asked us to slow down on certain projects just a little bit that, hey, we don't have anywhere to put this equipment. Can you slow down just a little.

嗯，實際上，這兩家工廠每個月的情況都略有不同。所以我們看到一月底的情況還不錯。我們遇到的一些天氣事件對我們的基本影響比其他任何地方都大。但更普遍的是，它影響了我們的一些客戶，我們的客戶要求我們稍微放慢某些項目的速度，嘿，我們沒有地方可以放置這些設備。你能慢一點嗎？

So there was some weather event in there. And then I don't want to discount entirely the impact of the construction going on at both of those locations. Both of them have substantial construction going on. What's going on in Longview is probably less disruptive because it's outside of the building we're using now, but it's somewhat disruptive.

所以那裡發生了一些天氣事件。然後我不想完全忽視這兩個地點正在進行的施工的影響。兩者都正在進行大量建設。朗維尤發生的事情可能不會造成太大的破壞，因為它位於我們現在使用的大樓之外，但也有一定的破壞性。

But in Oregon, they have disrupted the two primary buildings up there. One of them has had a reasonable disruption in rearranging what we're doing in there, getting it ready to move into the new building that we're building. And it's just it's not without impact. It's not substantial it's not prolonged. It's not something we're going to put up with me for a very long time, but we did see a little bit related to that.

但在俄勒岡州，他們破壞了那裡的兩座主要建築。其中之一在重新安排我們正在做的事情、準備搬進我們正在建造的新大樓方面受到了合理的干擾。只是它並非沒有影響。這並不重要，也沒有延長。這不是我們會長期忍受的事情，但我們確實看到了一些與之相關的事情。

And are you able to quantify the sales impact from some of these issues in the quarter?

您能否量化本季其中一些問題對銷售的影響？

Well, each segment reported. So you can see that on both of those two segments that I just spoke of ACP and basics were both below 2023. The growth, while it was marginal was in Tulsa and Tulsa, just it has no disruptions of any magnitude a little bit of weather related for some of our cause. We had customers saying you're shipping too early to us with this weather, we're having weather delays. Can you slow down a little that happened across the whole enterprise, but Tulsa was less impacted by. Does that answer your question, Ryan?

嗯，每個部分都報告了。所以你可以看到，我剛才談到的 ACP 和基本數據都低於 2023 年的這兩個部分。事業有關。我們有客戶說，在這種天氣下，你們向我們發貨太早了，我們遇到了天氣延誤。你能否放慢整個企業發生的事情，但塔爾薩受到的影響較小。這能回答你的問題嗎，瑞安？

Yes, I think so. Income maybe the follow on would be it sounds like I think you said second quarter sales flat, so we're not seeing a lot of improvement in 2Q. When do you expect at these timing of backlog issues or the production issues that you talked about when do you see that getting back to normal?

是的，我想是這樣。收入可能接下來會是，聽起來我認為你說第二季銷售持平，所以我們在第二季沒有看到很大的改善。您預計什麼時候會出現積壓問題或您談到的生產問題，什麼時候會恢復正常？

Well, my personal perspective is that it will be improving through Q2, but it will be Q. three before it's relatively normal.

嗯，我個人的觀點是，它會在第二季有所改善，但在第三季才會相對正常。

Got it. All right.

知道了。好的。

Thanks.

謝謝。

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Thanks, and good afternoon. On maybe maybe switching to parts a little bit. It was nice to see the parts sales growth of 10% in the quarter. Was that performance in parts partially due to adding more than expected capacity parts and volumes were a little depressed due to the issues you just outlined.

謝謝，下午好。也許可以稍微切換到零件。很高興看到本季零件銷售額成長 10%。由於您剛才概述的問題，零件的性能是否部分是由於添加了超出預期的容量零件和數量而導致的？

Matt, do you have any perspective on that?

馬特，你對此有什麼看法嗎？

Yes, I wouldn't I wouldn't say that the I wouldn't say the impact of volumes on the ACT and basic segments provided excess capacity apart, let's say, the parts growth is really parts demand and also from just a kind of a year-over-year comp. And also, you know, from from last year to this year, just also a normalization of supply chain has really also kind of made it easier to transact parked in any kind of global sense.

是的，我不會，我不會說，我不會說，除了產能過剩之外，銷量對ACT 和基本細分市場的影響，比方說，零部件增長實際上是零部件需求，而且也只是一種同比比較。而且，你知道，從去年到今年，供應鏈的正常化也確實讓全球意義上的交易變得更容易。

There's a lot of noise that kind of supply chain created in terms of being able to actually manage parts sales that's really stabilized now. So it's really just driven by demand of parts, nothing to do with the kind of slower volumes off any of the sites.

這種供應鏈在能夠實際管理現在真正穩定的零件銷售方面產生了許多噪音。因此，這實際上只是由零件需求驅動的，與任何站點的銷售放緩無關。

Okay. Understood. And then maybe if we could talk about data centers as you guys are assisting some of these data center customers and kind of being out handled or of sorts, is there any opportunities to provide any sticky products are sticky solutions that can embed you with those data center customers for the longer term?

好的。明白了。然後，也許如果我們可以談論資料中心，因為你們正在協助其中一些資料中心客戶，並且有點被處理或類似的情況，是否有機會提供任何黏性產品和黏性解決方案，可以將這些資料嵌入到你們中長期以客戶為中心？

It's a fantastic question. Yes. Yes, I would say at a high level, that's sort of where we are we specialize in providing kind of value value add to our customers. And so that does afford us the opportunity to really put us in unique positions with our customers and develop solutions that really provide us a far better opportunity within those customers. And so that is actually actively in our prepared remarks when we talk about the engagement of our engineering and operations teams.

這是一個很棒的問題。是的。是的，我想說，從高層次來說，這就是我們專注於為客戶提供增值服務的地方。因此，這確實為我們提供了真正讓我們在客戶中處於獨特地位的機會，並開發出真正為我們在這些客戶中提供更好機會的解決方案。因此，當我們談論我們的工程和營運團隊的參與時，這實際上是我們準備好的發言中的積極內容。

That's exactly what they've been doing. And it's really developing unique in really and solutions tailored for a given owner's kind of business models. And that's one of the great benefits of being a manufacturer with that kind of custom DNA, where we can can really solution something for the owners and then convert that to a mass produce products and really add a lot of value.

這正是他們一直在做的事。它確實在為特定所有者的商業模式量身定制獨特的解決方案。這就是成為具有這種客製化 DNA 的製造商的巨大好處之一，我們可以真正為業主解決問題，然後將其轉化為大量生產的產品，並真正增加很多價值。

So definitely, it's what we're most excited about. We certainly see opportunity to really ingrain ourselves in kind of their growth story and really be able to kind of be at the forefront of enabling that.

所以毫無疑問，這是我們最興奮的事情。我們當然看到了機會，可以讓自己真正融入他們的成長故事，並真正能夠站在實現這一目標的最前線。

Excellent. I'll pass it on. Thanks very much.

出色的。我會把它傳遞下去。非常感謝。

D.A. Davidson.

DA戴維森。

Hey, thanks and good evening. More actually, just kind of following up on that. Could you actually talk about the opportunity on the liquid cooling side for basics? And are you beginning to see orders for that specific market?

嘿，謝謝，晚上好。更實際上，只是跟進一下。您實際上能談談液體冷卻方面的機會嗎？您是否開始看到該特定市場的訂單？

Yes, it's a interesting line, and I'll say the the surge in AIM., it's really cause the industry to kind of really kind of look at how do you develop and deploy capacity to the marketplace. That also has flexibility to kind of serve more traditional cloud compute as well as AI and kind of how do you blend your development strategy around that?

是的，這是一條有趣的路線，我會說 AIM 的激增，它確實導致業界真正開始關注如何開發容量並將其部署到市場。它還可以靈活地服務於更傳統的雲端運算和人工智慧，以及如何圍繞它融合您的開發策略？

And we've really been working pretty heavily in that kind of market where we're developing solutions and then really working with customers too, to solve the air side and liquid side kind of conundrum and how we kind of go forward. And that is that has already gotten us to a point where we've got orders in hand and really substantial opportunities in the liquid cooling realm.

我們確實在這種市場上投入了大量精力，我們正在開發解決方案，然後也與客戶真正合作，解決空氣側和液體側的難題以及我們如何前進。這已經讓我們達到了這樣一個地步：我們手頭上有訂單，並且在液體冷卻領域擁有真正巨大的機會。

And really the of it's been kind of crafting solutions that really do provide flexibility in the deployment. So we see that actually as a really good, strong suit because it provides, you know, a better opportunity to deploy products where you don't necessarily know exactly what that future demand and that given location is going to look like and in those demos that greater flexibility really is attractive to the overall end user mean kind of as they look to deploy capital.

事實上，它是一種真正提供部署彈性的解決方案。因此，我們認為這實際上是一個非常好的、強項，因為它提供了一個更好的機會來部署產品，而在這些演示中，您不一定確切地知道未來的需求和給定的位置會是什麼樣子。

So we're excited to be seeing the conversion to actually orders off of the liquid cooling efforts. We're doing and really, from a pipeline perspective, extremely optimistic on kind of what that's going to mean for the enterprise as a whole.

因此，我們很高興看到液體冷卻工作轉化為實際訂單。我們正在做的事情，從管道的角度來看，我們對這對整個企業意味著什麼非常樂觀。

Okay. And then and a lot of the focus in the commentary has been just around some of it delays as opposed to the long view in basics. I guess my question would be was that core and sort of a on Oklahoma rooftop business, what you would have expected this quarter or were there some delays in timing there as well?

好的。然後，評論中的許多焦點都集中在一些延遲上，而不是基礎知識的長遠觀點。我想我的問題是，俄克拉荷馬州屋頂業務的核心業務，您對本季的預期是什麼，或者時間上是否也有一些延遲？

I think it's been relatively close, maybe just a slight bit softer than what we expected of it. We thought that we would see more seasonality in that business than what we had seen in recent years. And I believe that's mostly what we saw in the first quarter was the fact that Q1 historically has been a softer quarter for that product. The last few years, we've had exceptions for various reasons.

我認為它已經相對接近了，也許只是比我們的預期稍微溫和一些。我們認為該業務的季節性會比近年來更加明顯。我相信我們在第一季看到的主要事實是，從歷史上看，第一季對該產品來說是一個較疲軟的季度。過去幾年，我們因各種原因出現例外情況。

There was times when we had extraordinary lead time and others didn't that. We got past some of that seasonality of you know, there was buying habits that changed. There was just a whole lot going on. I think we're in a relatively normal cadence of business now. And our sales channel partners have strong backlogs themselves that they're processing, strong pipelines that they're processing and sending to us. And so while it was just a touch softer than what we may have expected, it wasn't entirely unexpected.

有時我們有超常的交貨時間，而其他人卻沒有。我們已經克服了一些季節性因素，你知道，購買習慣改變了。發生了很多事情。我認為我們現在的業務節奏相對正常。我們的銷售通路合作夥伴本身也有大量的積壓訂單，他們正在處理，強大的管道，他們正在處理並發送給我們。因此，雖然它的觸感比我們預期的要柔和一些，但這並不完全出乎我們的意料。

Okay. And then just some of the pent-up or built-up sort of orders here, I suppose with basics, long view, does that I mean, I'll start to flow into the second half. I mean, should we see a huge catch-up year for how do we think about that? I know you've got your expectations for the second quarter. It sounds like it won't happen, but when does that ultimately flow?

好的。然後，我認為從基礎知識和長遠來看，這裡只是一些被壓抑或累積的訂單，我的意思是，我將開始流入下半年。我的意思是，我們是否應該看到一個巨大的追趕年，我們對此有何看法？我知道您對第二季有期望。聽起來似乎不會發生，但最終什麼時候會發生呢？

Yes, we certainly see the kind of second half orders conversion to revenue definitely being strong in those segments. And really that's also kind of going to be aided by the As Gary mentioned, there's a lot of disruption in the projects that are going on at both sites. And so we also look forward to Redmond site wrapping up in the Q3 timeframe and a lot of you at the end of the year, you know, that's really going to help also kind of fuel some of that growth and kind of clean up some of the noise that's kind of happening on those sites. So we definitely do see that kind of second half kind of helping to accelerate kind of from a from a volume and a overall revenue perspective kind of at those sites kind of given those constraints.

是的，我們當然看到下半年訂單轉化為收入的情況在這些領域肯定很強勁。事實上，正如加里所提到的，這也將得到幫助，兩個地點正在進行的項目都受到了許多幹擾。因此，我們也期待雷德蒙網站在第三季的時間範圍內結束，你們很多人都在年底，你知道，這確實會有助於推動一些成長，並清理一些問題。噪音。因此，考慮到這些限制，我們確實看到下半年從數量和整體收入角度來看，這些網站有助於加速發展。

Okay. Thanks, Matt. Appreciate it.

好的。謝謝，馬特。欣賞它。

Yes, yes, there are no further questions. I will now turn the call over to Joseph.

是的，是的，沒有其他問題了。我現在將把電話轉給約瑟夫。

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 and have a great rest of the day, and we look forward to speaking with you in the future. Thank you.

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，祝您今天休息愉快，我們期待將來與您交談。謝謝。

Ladies and gentlemen, this concludes the call for today. Thank you for calling and please go ahead and disconnect your lines.

女士們、先生們，今天的電話會議到此結束。感謝您致電，請先斷開線路。