AAR Corp (AIR) 2013 Q2 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the AAR CORP. second-quarter fiscal 2013 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.

美好的一天，女士們先生們。歡迎參加 AAR CORP. 2013 財政年度第二季財報電話會議。此時，所有參與者都處於只聽模式。稍後我們將進行問答環節，屆時會給予指示。

(Operator Instructions)

（操作員說明）

As a reminder, this program is being recorded. I would now like to introduce your host for today's program, Mr. Chris Mason, Director of Corporate Communications. Please go ahead, sir.

提醒一下，該節目正在錄製中。現在我想介紹一下今天節目的主持人，企業傳訊總監 Chris Mason 先生。請繼續，先生。

Thank you, Jonathan. Good afternoon, ladies and gentlemen, and thank you for joining our second-quarter fiscal year 2013 earnings conference call. Before we begin, I'd like to remind you that comments made this afternoon may include forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. We ask that you refer to the disclaimer in our news release, as well as risk factors section of the Company's Form 10-K for the fiscal year ended May 31, 2012. In providing forward-looking statements, the Company assumes no obligation to provide updates to reflect future circumstances or the occurrence of anticipated or unanticipated events. At this time, we would like to turn the call over to our Chairman and CEO, David Storch.

謝謝你，喬納森。女士們、先生們，下午好，感謝您參加我們的 2013 財年第二季財報電話會議。在開始之前，我想提醒您，今天下午發表的評論可能包含 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。 31 日的財政年度公司10-K 表格的風險因素部分。目前，我們想將電話轉給我們的董事長兼執行長 David Storch。

Thank you, Chris. Good afternoon and thank you for joining us today. Joining me in Chicago is Tim Romenesko, our President and Chief Operating Officer, and Mike Sharp, our Interim Chief Financial Officer. We have a good second quarter to report today. We've executed well, continued to integrate our aviation services platform, and made ongoing operational progress in a number of key areas.

謝謝你，克里斯。下午好，感謝您今天加入我們。與我一起前往芝加哥的是我們的總裁兼營運長 Tim Romenesko 和我們的臨時財務長 Mike Sharp。今天我們要報告第二季的業績。我們執行得很好，繼續整合我們的航空服務平台，並在一些關鍵領域取得持續的營運進度。

To begin, I'd like to give you some of the financial highlights from the second quarter. Revenues in the quarter were $513 million, up 6.4% versus the prior year. Our revenue mix shifted toward the higher growth commercial market, which now comprised 60% of second quarter sales, with government and defense now comprising 40%. Aviation services revenue were up 4%, with a number of areas showing improvement, including our airframe maintenance centers, after market parts support businesses, and improved operating performance from our Airlift business. Sales in this segment were negatively impacted by a reduction in program activity at our defense logistics business, which we had expected. Technology products revenue grew by 15% versus prior year, driven by acquisition-related growth. This is partially offset, as expected, by pressure and mobility systems, which saw a $39 million sales decline on a year-over-year basis, and a $33 million sales decline on a sequential basis.

首先，我想向您介紹第二季的一些財務亮點。該季度營收為 5.13 億美元，比上年增長 6.4%。我們的收入結構轉向成長較高的商業市場，目前該市場佔第二季銷售額的 60%，政府和國防市場目前佔 40%。航空服務收入成長了 4%，許多領域都出現了改善，包括我們的機身維護中心、售後市場零件支援業務以及空運業務營運績效的改善。該部門的銷售受到我們預期的國防物流業務計劃活動減少的負面影響。受收購相關成長的推動，技術產品營收較上年成長 15%。正如預期的那樣，壓力和行動系統的銷售額年減了 3,900 萬美元，環比下降了 3,300 萬美元，部分抵消了這一影響。

Consolidated gross profit margin improved to 17% from 16.3% in the year-ago quarter. Aviation services gross margin increased slightly from 17% in the prior year to 17.2% this year. Technology products gross margin improved to 16.4% versus last year's margin of 13.8%. There are a few moving pieces, but the key items were higher gross margins associated with our acquired businesses, and reduced margins in mobility products. Total operating profit in the second quarter was up 10.2% to $38 million, an operating margin of 7.4%, up versus last year's margin of 7.1%. We made good profitability gains in many areas, but as previously mentioned, we also absorbed a significant reduction from our mobility systems business. Net income was up slightly from a year ago at $17.8 million in the quarter, and diluted EPS was $0.44. This exceeded both our internal and consensus expectations.

綜合毛利率從去年同期的 16.3% 提高至 17%。航空服務毛利率由上年的17%小幅上升至今年的17.2%。科技產品毛利率從去年的 13.8% 提高至 16.4%。有一些變化，但關鍵是與我們收購的業務相關的更高的毛利率，以及行動產品的利潤下降。第二季營業利潤總額成長 10.2%，達到 3,800 萬美元，營業利益率為 7.4%，高於去年同期的 7.1%。我們在許多領域取得了良好的獲利能力，但正如前面所提到的，我們也吸收了行動系統業務的大幅削減。該季度淨利潤較去年同期略有增長，達 1,780 萬美元，攤薄後每股收益為 0.44 美元。這超出了我們內部和共識的預期。

In summary, we're pleased with the financial performance in the second quarter, which followed a good first quarter. We remain confident in our full-year view of the business and we've raised our earnings guidance for the full year. We continue to feel particularly good about our commercial aerospace business and how we're positioned. Our strength versus last year was driven by steady demand under new and existing contracts and customers, including business with Delta, Southwest, United and Air Canada. Our MRO business has benefited from our ability to execute. We've also seen a reduction in total industry MRO capacity in North America, which is a positive development, and we are benefiting from aircraft movement, which opens up opportunities for both our MRO and parts support businesses.

總而言之，我們對第二季的財務表現感到滿意，繼第一季表現良好之後。我們對全年業務前景仍然充滿信心，並上調了全年獲利指引。我們仍然對我們的商業航空業務以及我們的定位感到特別滿意。我們與去年相比的優勢是由新合約和現有合約和客戶的穩定需求推動的，包括與達美航空、西南航空、聯合航空和加拿大航空的業務。我們的 MRO 業務受益於我們的執行能力。我們還看到北美行業總的 MRO 能力有所下降，這是一個積極的發展，而且我們正受益於飛機運輸，這為我們的 MRO 和零件支援業務帶來了機會。

With respect to the defense markets, we see two different factors. For our aviation services segment we see potential opportunity, as the geopolitical environment demands a high level of readiness be maintained, while many existing platforms are aging, and budgets are constrained. Our aviation services business enabled government and defense customers to do more with less, and to reduce their costs. This includes our MRO, supply chain, and Airlift activities. We believe our market position provides an opportunity to be part of our customers' solution, in this very challenging budget environment.

關於國防市場，我們看到兩個不同的因素。對於我們的航空服務部門，我們看到了潛在的機會，因為地緣政治環境要求保持高水準的準備狀態，而許多現有平台正在老化，並且預算受到限制。我們的航空服務業務使政府和國防客戶能夠事半功倍，並降低成本。這包括我們的 MRO、供應鏈和空運活動。我們相信，在這個極具挑戰性的預算環境中，我們的市場地位提供了成為客戶解決方案一部分的機會。

At the same time, we do have exposure, as you see with our mobility business. In general, we're managing through the environment well, and we're able to absorb the revenue decline in defense while increasing our earnings per share. As you know, we've consolidated three segments into one newly-created aviation services platform. This reflects how we're managing this set of businesses, as we look to drive operating efficiencies while providing our customers with more comprehensive solutions, and attempting to give ourselves a competitive advantage. We believe this will create additional growth opportunities and lead to margin improvement. A good example of this is the recent contract we have entered for the sale of two aircraft for the Colombian Air Force, which we expect to deliver in the second half of our fiscal year. We created a comprehensive solution for this new customer, by bringing together the capabilities of eight different areas of our business.

同時，我們確實擁有曝光度，正如您在我們的行動業務中所看到的那樣。總的來說，我們對環境的管理很好，我們能夠吸收國防收入的下降，同時增加每股盈餘。如您所知，我們已將三個部分整合為一個新創建的航空服務平台。這反映了我們管理這組業務的方式，因為我們希望提高營運效率，同時為客戶提供更全面的解決方案，並試圖為自己帶來競爭優勢。我們相信這將創造額外的成長機會並導致利潤率改善。一個很好的例子是我們最近簽訂的為哥倫比亞空軍出售兩架飛機的合同，我們預計將在本財年下半年交付。我們透過整合八個不同業務領域的能力，為這個新客戶創造了全面的解決方案。

Also during the quarter, we announced the sale of 10 aircraft to MAS from our joint venture portfolio. This will reduced aircraft lease portfolio to eight aircraft, consistent with our stated goal to reduce our investment in aircraft leasing. We expect to further reduce our lease portfolio by two aircraft during the third quarter. While we have reduced our portfolio of leased aircraft, we will remain active in the aircraft sales and remarketing business, where we have an established market presence and a successful track record, and where such activity helps connect many pieces of our organization to deliver solutions for our customers.

同樣在本季度，我們也宣布從我們的合資企業組合向 MAS 出售 10 架飛機。這將使飛機租賃組合減少至八架飛機，符合我們減少飛機租賃投資的既定目標。我們預計第三季將進一步減少兩架飛機的租賃組合。雖然我們減少了租賃飛機的投資組合，但我們將繼續活躍於飛機銷售和再行銷業務，我們在這些業務中擁有成熟的市場存在和成功的業績記錄，並且此類活動有助於將我們組織的許多部門聯繫起來，為客戶提供解決方案。

In our technology products segment, our strategy is to build around the leadership positions we have established in the niches we operate, both in cargo systems, and mobility products. In both these businesses, we are close to the customer, we have prime into DOD, or Tier 1 into Boeing and Airbus. It's also key that we have proprietary products and own the intellectual property. As we look to grow our technology products segment, we will focus on finding niche markets where we can add value to our customer in design, engineering, integration, and most importantly, after market support. Our technology products business is generally healthy, the Telair and Nordisk additions are performing well, however, over the next couple of quarters we'll continue to face tough year-over-year comparisons in this segment to the reduction in sales volume in our mobility business. At this point, I'd like to turn the call over to Mike for a more detailed review of our financial performance in the quarter, and the specifics on the guidance we're providing to you.

在我們的技術產品領域，我們的策略是圍繞著我們在貨運系統和行動產品領域所經營的利基市場中建立的領導地位而建立。在這兩項業務中，我們都貼近客戶，我們有國防部的主要業務，或波音和空中巴士的一級業務。同樣重要的是我們擁有專有產品並擁有智慧財產權。當我們尋求發展我們的技術產品領域時，我們將專注於尋找利基市場，在這些市場中我們可以在設計、工程、整合以及最重要的是售後支援方面為客戶增加價值。我們的科技產品業務整體健康，Telair 和 Nordisk 的新增業務表現良好，但是，在接下來的幾個季度中，我們將繼續面臨該細分市場與行動銷量下降的艱難同比比較商業。此時，我想將電話轉給麥克，以更詳細地審查我們本季的財務業績，以及我們向您提供的指導的具體細節。

Thank you, David, and good afternoon to everyone. Many of you do not know me, so by way of very brief introduction, I joined the Company in 1996 as Controller, and have been a Corporate Vice President serving as Controller and Chief Accounting Officer since 1999, so I have 16 years with the Company and the finance organization. This afternoon, I would like to provide a bit more color on our financial performance, including comments around interest, depreciation, cash flow and capital expenditures, and I will be available the rest of the day to answer any questions that you might have.

謝謝大衛，大家下午好。很多人都不認識我，所以我簡單介紹一下，我於1996年加入公司擔任財務總監，並自1999年起擔任公司副總裁，擔任財務總監和首席會計官，所以我在公司工作了16年和財務組織。今天下午，我想就我們的財務業績提供更多信息，包括有關利息、折舊、現金流和資本支出的評論，我將在當天剩餘時間回答您可能提出的任何問題。

Consolidated revenues for the second quarter grew 6.4% to $513 million versus $482 million last year. In the aviation services segment, sales increased 4% to $391 million, which was essentially all organic growth. Within the aviation services segment, our airframe maintenance centers remained very busy, and we expect that to continue the balance of the fiscal year. Late in the second quarter, our customer inducted the first aircraft in the recently-opened Duluth MRO, however, the impact on Q2 sales was minimal. This past weekend we redelivered the aircraft to the customer. The Duluth facility will add four maintenance lines at peak capacity, or approximately 400,000 man hours, which to put it in perspective, is slightly less than 10% of our overall hangar capacity.

第二季綜合營收成長 6.4%，達到 5.13 億美元，去年同期為 4.82 億美元。在航空服務領域，銷售額成長了 4%，達到 3.91 億美元，基本上都是有機成長。在航空服務領域，我們的機身維修中心仍然非常繁忙，我們預計這種情況將持續到本財年的剩餘時間。第二季末，我們的客戶在最近開業的德盧斯 MRO 中引入了第一架飛機，然而，對第二季銷售的影響很小。上週末我們將飛機重新交付給客戶。德盧斯工廠將在高峰容量時增加 4 條維護線，約 40 萬工時，從長遠來看，這略低於我們機庫總容量的 10%。

We also saw strength in our engineering services unit as we delivered on a contract that began late in the fourth quarter of last fiscal year. Commercial parts sales increased due to strong program volumes, including the Unison distribution program, which saw its highest quarterly sales since the program started early last fiscal year. Airlift was up year-over-year due to steady improvement in operational readiness and increased flying hours. In June, our fixed wing contract was renewed for one year, and as expected, during the second quarter, two rotary wing contracts were renewed for the next 12 months. Flying activity during the second quarter was as brisk as we've seen at Airlift. Our defense systems logistics business was down year-over-year, largely due to the completion of one program, and a reduction in activity on another program. We expect that this trend for this unit to continue for the balance of the fiscal year.

我們也看到了工程服務部門的實力，因為我們交付了上一財年第四季末開始的合約。由於計劃數量強勁，商業零件銷售額有所增長，其中包括 Unison 分銷計劃，該計劃創下了自上財年初啟動該計劃以來的最高季度銷售額。由於營運準備情況的穩定改善和飛行時間的增加，空運量較去年同期成長。 6月份，我們的固定翼合約續簽了一年，正如預期的那樣，第二季度，我們續簽了兩份旋翼合同，為期12個月。第二季的飛行活動與我們在 Airlift 看到的一樣活躍。我們的國防系統物流業務年減，主要是由於一個專案的完成以及另一個專案活動的減少。我們預計該部門的這一趨勢將在本財年剩餘時間內持續下去。

Turning to the technology products segment. Sales increased 16% as we benefited from the Telair and Nordisk acquisitions. As David mentioned, we experienced an expected decline at our mobility products unit, and we expect third- and fourth-quarter sales to be similar with the second-quarter level at this business unit. Our consolidated gross profit margin was 17%, up 70 basis points from a year ago, and compares favorably to consolidated margins for the past four quarters.

轉向科技產品領域。由於收購 Telair 和 Nordisk，我們的銷售額成長了 16%。正如大衛所提到的，我們的行動產品部門經歷了預期的下降，我們預計該業務部門第三和第四季的銷售額將與第二季的水平相似。我們的綜合毛利率為 17%，比去年同期成長 70 個基點，與過去四個季度的綜合利潤率相比相當不錯。

SG&A expense in the second quarter as a percent of sales was 9.9% versus 9.3% last year, and 9.7% in our first quarter. Although SG&A as a percent of sales is higher, mainly due to the sharp decline in sales at mobility, in absolute dollars, SG&A is down $2.4 million on a sequential basis. Net interest for the quarter was $10.5 million, which is up from $7.5 million last year. The cash portion of interest expense increased to $7.6 million from $4.2 million, largely as a result of the acquisition-related financing put in place last January.

第二季的 SG&A 費用佔銷售額的百分比為 9.9%，去年為 9.3%，第一季為 9.7%。儘管 SG&A 佔銷售額的百分比較高（主要是由於流動性銷售額急劇下降），但以絕對美元計算，SG&A 環比下降了 240 萬美元。本季淨利息為 1,050 萬美元，高於去年的 750 萬美元。利息支出的現金部分從 420 萬美元增加到 760 萬美元，這主要是由於去年 1 月實施的收購相關融資所致。

As we've been communicating for some time, we are very focused on cash, with an eye toward generating free cash flow equal to our net income. During the second quarter, we generated $27.1 million of cash from operations and our capital expenditures were $8.1 million. We've now generated $60 million of cash from operations during the first six months of fiscal 2013. Our depreciation and amortization, including amortization of stock-based compensation, was approximately $22.2 million, and our EBITDA was $60 million for the second quarter.

正如我們已經溝通了一段時間的那樣，我們非常關注現金，並著眼於產生等於我們淨收入的自由現金流。第二季度，我們的營運現金為 2,710 萬美元，資本支出為 810 萬美元。在2013 財年的前六個月中，我們已經從營運中產生了6,000 萬美元的現金。為6000 萬美元。

Lastly, with respect to the guidance, as you've seen, we increased our full-year guidance again this quarter. This reflects the stronger than expected second quarter performance and the increased visibility we have for the remainder of the fiscal year. We now expect diluted earnings per share in the range of $1.70 to $1.80 for the full fiscal year. Right now, we're expecting to see third-quarter results largely in line with second quarter, and please keep in mind some of the seasonality that we have in our business and we see results in our fourth quarter strengthening as we move to the historically stronger period for the Company. Thanks for your attention, and I'll now turn the call back over to David for some closing comments.

最後，關於指導，正如您所看到的，我們本季再次提高了全年指導。這反映出第二季的業績強於預期，我們對本財年剩餘時間的可見度有所提升。我們目前預計整個財年攤薄後每股收益將在 1.70 美元至 1.80 美元之間。目前，我們預計第三季的業績將與第二季基本一致，請記住我們業務中的一些季節性因素，隨著我們轉向歷史水平，我們看到第四季度的業績將會加強。強勁時期。感謝您的關注，我現在將把電話轉回給 David，以徵求一些結束語。

Good job, Mike. Before we move to Q&A, I'd just like to reiterate a couple of highlights. First, we had good financial performance in the second quarter. That said, we know we can do better, and we're pushing to improve margins and increase profitability through better execution and market share gains. Second, we made continued operational progress. Our aviation services businesses are well coordinated, and by going to market as one entity, we are able to deliver a unique capability to our customers that can add tremendous value. The breadth and depth of our capabilities is what provides us our competitive advantage.

幹得好，麥克。在我們進行問答之前，我想重申幾個要點。首先，我們第二季的財務表現良好。也就是說，我們知道我們可以做得更好，並且我們正在透過更好的執行和市場份額的成長來努力提高利潤率和獲利能力。二是經營持續取得進展。我們的航空服務業務協調良好，透過作為一個實體進入市場，我們能夠為客戶提供一種獨特的能力，從而增加巨大的價值。我們能力的廣度和深度為我們提供了競爭優勢。

Third, we're generating cash flow from the business that we are using to fund our growth to reduce our indebtedness and to repurchase our shares. Fourth, we've continued to position the Company well strategically. Our recent acquisitions have added proprietary technology and higher-margin businesses to our products portfolio, and the integration of the aviation services business is enabling a deeper conversation and relationships with our customers. We believe we've positioned ourselves well for the balance of the fiscal year and beyond. So thank you, and I'd like to open up the floor to any questions you may have.

第三，我們從業務中產生現金流，用於為我們的成長提供資金，以減少我們的債務並回購我們的股票。四是繼續做好公司策略定位。我們最近的收購為我們的產品組合增加了專有技術和更高利潤的業務，航空服務業務的整合使我們能夠與客戶進行更深入的對話和關係。我們相信，我們已經為本財年及以後的剩餘時間做好了充分的準備。謝謝大家，我願意回答大家提出的任何問題。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Larry Solow from CJS Securities. Your question, please.

我們的第一個問題來自 CJS 證券的 Larry Solow。請提出你的問題。

Let me see if you could just parcel out, on an organic basis, I imagine government and defense was down, but was commercial, I assume, was up organically? Do you have that number?

讓我看看你是否可以在有機的基礎上進行分配，我想政府和國防都在下降，但我認為商業是有機地增長的？你有那個號碼嗎？

Yes, Larry. Commercial was up organically. It was up in a similar fashion as the first quarter.

是的，拉里。商業有機成長。其成長方式與第一季類似。

Okay, could you remind me what that was?

好吧，你能提醒我那是什麼嗎？

So we had some aircraft transactions in Q1, I'm sorry in Q2 of the prior year, so if you exclude that aircraft transaction, organic commercial growth was 13%.

因此，我們在第一季有一些飛機交易，很抱歉在去年第二季度，所以如果排除飛機交易，有機商業成長率為 13%。

13%, okay great. Do you happen to have what the government declined organically, government and defense?

13%，好吧，太好了。你碰巧擁有政府有機拒絕的東西，政府和國防嗎？

It's all. All the decline in government was organic.

就這樣了。政府的所有衰退都是有機的。

Yes, the acquisitions we made last year had no defense components.

是的，我們去年的收購沒有國防組件。

Got it. Okay, got you. Second question, Duluth I realize just opened this quarter. Was there a negative impact, as you ramp up with no revenues, and you had front running expenses, can you give us a little more color on that? I imagine that should start to improve?

知道了。好的，明白了。第二個問題，德盧斯，我知道本季剛開業。當您在沒有收入的情況下增加業務並且有前期營運費用時，是否會產生負面影響？我想這應該會開始改善？

Yes, Larry, there was a modest negative impact in the quarter. We expect just a couple of more months of the investment, if you will, and then by the end of Q3 and going forward, when the second line comes in, we would expect to have all that behind us. But the Duluth facility has gone very well, the team that we have up there has done a terrific job getting the facility ready. We've had a lot of support from the community and from the regulator, so it's really on track to do everything we thought it was going to do.

是的，拉里，本季出現了輕微的負面影響。如果你願意的話，我們預計還需要幾個月的投資，然後到第三季末以及未來，當第二條生產線投入使用時，我們預計一切都會過去。但德盧斯的設施進展順利，我們在那裡的團隊在設施準備工作方面做得非常出色。我們得到了社區和監管機構的大力支持，因此它確實正在按計劃實現我們認為要做的一切。

Okay, great. Thanks a lot.

好的，太好了。多謝。

Thank you. Our next question comes from the line of Julie Yates from Credit Suisse. Your question, please.

謝謝。我們的下一個問題來自瑞士信貸銀行的 Julie Yates。請提出你的問題。

The 15% decline in defense seems pretty steep. Can you talk about the primary drivers in the different parts of your business and then what kind of full-year growth number you're expecting out of defense?

防禦力下降 15% 看起來相當陡峭。您能否談談您業務不同部分的主要驅動因素，以及您預計的全年成長數字是多少？

Well the decline is primarily due to two areas. One, the decline at mobility systems, where we finished off a significant contract and the contract wasn't renewed, and then also on some of our supply chain programs, one of which is still in existence but operating at a lower level, and then the second one has been discontinued, so those were the two contributors to the decline. In terms of where we go from here, I think we're going to be in this same kind of general area as we go forward, with the possibility of modest growth, and then we have some special situations which are going to move the numbers around like the aircraft transaction that David mentioned.

下降主要是由於兩個方面。一是移動系統的衰退，我們完成了一份重要的合同，但沒有續簽合同，然後是我們的一些供應鏈計劃，其中一個仍然存在，但運行水平較低，然後第二個已經停產，因此這是造成下降的兩個因素。就我們今後的發展方向而言，我認為我們將處於同樣的總體區域，並有可能實現適度增長，然後我們會遇到一些特殊情況，這些情況將會改變數字就像大衛提到的飛機交易一樣。

Okay, so the $33 million sequential decline from the first quarter, how do we think about the quarterly progression from here for this segment?

好的，那麼從第一季開始連續下降了 3300 萬美元，我們如何看待該細分市場從這裡開始的季度進展？

Yes, I think, like I said, we're going to be at these levels going forward out into the next few quarters, and again with the exception of that aircraft transaction, so I think the easiest way to look at it is flat going forward.

是的，我認為，就像我說的，我們將在接下來的幾個季度保持這些水平，並且除了飛機交易之外，所以我認為最簡單的看待它的方法是持平向前。

So Julie, the mobility business, we do not expect any further decline to the mobility business in Q3 and Q4.

因此，朱莉，移動業務，我們預計第三季度和第四季度移動業務不會進一步下滑。

Okay, understood, great. And then you mentioned an increase in the commercial parts sales. Can you quantify what that was?

好的，明白了，太好了。然後您提到商業零件銷售的成長。你能量化那是什麼嗎？

Well I think what we're saying is organically, our organic growth in the commercial aviation pieces of our business were in the 13% range. Not including MRO.

嗯，我認為我們所說的是有機成長，我們商業航空業務的有機成長在 13% 範圍內。不包括 MRO。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you. Our next question comes from the line of Tyler Hojo from Sidoti & Company. Your question, please.

謝謝。我們的下一個問題來自 Sidoti & Company 的 Tyler Hojo。請提出你的問題。

Just firstly, if we could talk a little bit about Airlift. David in past quarters and years you've been pretty optimistic about the sustainability of that business, and I guess now that we've seen a couple of sustainment contracts come in, in the last couple months, you do have pretty decent visibility over the next 12 months. I was hoping perhaps you could talk in a little bit more detail about what your longer-term expectations are. I mean, would you expect to see a decline in that business ultimately beyond the next 12 months, or how do you look at it?

首先，我們可以談談空運嗎？大衛，在過去的幾個季度和幾年裡，您對該業務的可持續性非常樂觀，我想現在我們已經看到了幾份維持合同，在過去的幾個月裡，您確實對業務的永續性有相當不錯的了解。我希望您能更詳細地談談您的長期期望是什麼。我的意思是，您是否預計該業務在未來 12 個月後最終會出現下滑，或者您如何看待它？

Well, we're looking at that business in a few different ways. Clearly right now, we have a high degree of concentration in the Afghanistan theater. We have had a little indication from the customer of a reduction in demand, however, we are anticipating that as we get towards the end of this sequence of business that there will be a reduction in demand, although we're not seeing that and we've not been told that, we're kind of thinking that's the case. We have a plan then to go ahead and adjust the fleet, if necessary, and solicit other customers for this type of service, and as I said in the past, there's other DOD opportunity, there's State Department opportunity, there's UN opportunities and there are numerous opportunities around the world that the team is looking at. So, when you look at the progression of the business, you recall, last year we were having a hard time keeping aircraft up in the sky. This year, we're doing a really good job of executing on the business, the customer has taken note of our performance and we continue to believe that the revenue opportunity and margin opportunity for the business continues to be there.

嗯，我們正在以幾種不同的方式看待這項業務。顯然，目前我們高度集中在阿富汗戰區。我們從客戶那裡得到了一些需求減少的跡象，但是，我們預計，當我們接近這一系列業務的結尾時，需求將會減少，儘管我們沒有看到這一點，而且我們沒有人告訴我們，我們認為情況確實如此。然後，我們有一個計劃，如果有必要，將繼續調整機隊，並為此類服務招攬其他客戶，正如我過去所說，還有其他國防部的機會，有國務院的機會，有聯合國的機會，還有該團隊正在世界各地尋找大量機會。因此，當您查看業務進展時，您會記得，去年我們很難讓飛機保持在空中。今年，我們在業務執行方面做得非常好，客戶已經注意到我們的表現，我們仍然相信業務的收入機會和利潤機會仍然存在。

Okay, would you need to see some, at what point would you need to see some of the incremental opportunities hit, to make you a little bit more positive on the prospects of the business?

好的，您是否需要看到一些，在什麼時候您需要看到一些增量機會的出現，以使您對業務前景更加樂觀？

I think it's reasonable that we get some additional business away from the current theaters in the next six months.

我認為在未來六個月內我們從現有影院獲得一些額外業務是合理的。

Okay, great. And then just a follow-up to Julie's last question on mobility. Could you give us an idea of where we are relative to peak sales volumes and perhaps where the last trough was? I'm just trying to gauge kind of where we are on this, call it, the cycle and how much potential downsides there is.

好的，太好了。然後是朱莉最後一個關於流動性的問題的後續。您能否告訴我們我們相對於高峰銷售的位置以及最後一個低谷的位置？我只是想衡量一下我們在這方面的進展，稱之為週期，以及有多少潛在的負面影響。

We don't believe there's as much downside from here. The business is off significantly from its peak, but I think we've indicated here that the revenues on a year-over-year basis are down $36 million or $35 million, $33 million from a sequential basis. Tim indicated that we worked our way through a few contracts, so I don't think you'll see much more decline at this stage. Keep in mind, there are three pieces, there's four pieces to this business. There's the manufacture of the 463L pallet, where we're the exclusive provider to the US Air Force, there is the container business, and just to give you a sense, we booked some orders for the activity in Turkey. And then you have your shelter business which is more of a larger cycle, a longer cycle business that relates to the replacement of these shelters, typically in a 20-year cycle and there's just a regular flow of activity that supports that replenishment-replacement cycle for the shelters. And the fourth piece is a service business, where we repair the pallets, containers and shelters and we see no reason to think that business will decline at all, so we clearly signal the time we had, we were a beneficiary of various surges that were taking place around the world, and I think we performed very well through that period, and now we're getting down to a more normalized peaceful environment level of activity.

我們不認為這裡有那麼多的缺點。這項業務已較巔峰時期大幅下滑，但我認為我們在此指出，營收年減了 3,600 萬美元、3,500 萬美元、3,300 萬美元。蒂姆表示，我們已經通過了幾份合同，所以我認為現階段您不會看到更多的下降。請記住，這項業務分為三個部分、四個部分。其中包括 463L 托盤的製造，我們是美國空軍的獨家供應商，還有貨櫃業務，為了讓您了解一下，我們在土耳其預訂了一些訂單。然後你就有了庇護所業務，它是一個更大的周期，一個與這些庇護所的更換相關的更長週期的業務，通常以20 年為一個週期，並且只有定期的活動流程來支持補充-更換週期用於避難所。第四部分是服務業務，我們修理托盤、貨櫃和庇護所，我們認為沒有理由認為業務會下降，所以我們清楚地表明了我們所擁有的時間，我們是各種激增的受益者世界各地都在發生，我認為我們在那段時期表現得非常好，現在我們正在達到更正常化的和平環境活動水平。

Okay, great. Now, typically during these peacetime levels of activity would you anticipate seeing the service business pick up or how does that work?

好的，太好了。現在，通常在和平時期的活動水平下，您是否預計會看到服務業務回升或其運作方式如何？

Service business does fairly well during this period. You have the return of the equipment that needs to be put back in a serviceable condition, and so typically, we've done fairly well in that regard, yes.

在此期間，服務業務表現相當不錯。您退回的設備需要恢復到可用狀態，因此通常我們在這方面做得相當好，是的。

Just last question for me, on Duluth, is it a maximum of three lines, or that's what you're currently targeting in terms of additional capacity?

我的最後一個問題是，在德盧斯，最多三條線路，還是您目前在額外容量方面的目標？

No, we expect to have four lines of work in Duluth, and it's pretty much the max. You can do some work out on the ramp of things like that, but it's basically four lines max.

不，我們預計在德盧斯有四個生產線，這幾乎是最大數量。你可以在類似的斜坡上做一些練習，但基本上最多是四行。

Okay, great. Thanks a lot.

好的，太好了。多謝。

Thank you. Our next question comes from the line of JB Groh from D.A. Davidson. Your question, please.

謝謝。我們的下一個問題來自 D.A. 的 JB Groh。戴維森。請提出你的問題。

I don't want to beat a dead horse but on your government decline, you mentioned brisk Airlift. Did you give an organic growth rate for Airlift that offsets the weakness in some of the other areas?

我不想死馬當活馬醫，但在你的政府衰落時，你提到了輕快的空運。您是否給出了 Airlift 的有機成長率，以抵消其他一些領域的疲軟？

Yes, so percentage wise?

是的，那麼百分比明智嗎？

Yes.

是的。

So on a year-over-year basis, the sales increase at Airlift was up about 30%.

因此，與去年同期相比，Airlift 的銷售額成長了約 30%。

Okay, good. And then I noticed the SG&A came down pretty significantly from last quarter, and is that kind of a run rate that we should expect, or was there one-time things in there that caused that to come down from last quarter?

好的。然後我注意到 SG&A 較上季度大幅下降，這是我們應該預期的運行率，還是其中存在一次性因素導致其較上季度下降？

No, I mean, I wouldn't say, JB, there was any one-timers in there. We did adjust some of the infrastructure in Q1, as we talked about in September, so some more of that benefit fell through in Q2. Q1 has a tendency to be a little higher with some of the year-end expenses and so on and so forth, but there was really no unusual items in the Q2 number.

不，我的意思是，我不會說，JB，那裡有一次性的人。正如我們在 9 月談到的那樣，我們確實在第一季調整了一些基礎設施，因此更多的好處在第二季落空了。由於一些年終費用等等，第一季有稍微高一點的趨勢，但第二季的數字確實沒有什麼異常的項目。

So just a little seasonality sequentially from Q2, so using a number like 52 is probably okay?

因此，從第二季開始依序出現一點季節性，所以使用像 52 這樣的數字可能可以嗎？

Yes.

是的。

Okay, thank you. That's all I had.

好的謝謝。這就是我所擁有的一切。

Thank you. Our next question comes from the line of Jon Braatz from Kansas City Capital. Your question please.

謝謝。我們的下一個問題來自堪薩斯城首都的喬恩‧布拉茨 (Jon Braatz)。請你提問。

Given the decline in the mobility segment, is that segment operating profitably at this moment?

鑑於行動細分市場的下滑，該細分市場目前是否實現獲利？

Yes, it is, but it's not a segment, just to clarify.

是的，是的，但它不是一個片段，只是為了澄清。

I'm sorry.

對不起。

Yes it is. It's still a terrific business, Jon, just operating at significantly lower volumes.

是的。喬恩，這仍然是一項很棒的業務，只是營運量顯著降低。

Okay, is there an opportunity to move the needle on the bottom line a little bit? Given the decline in revenue, is there more things you can do to improve the profitability?

好吧，有機會稍微改變一下底線嗎？鑑於收入下降，您還可以採取更多措施來提高獲利能力嗎？

We're always looking at those kinds of things. The team has done, I think, a good job sizing the cost structure of the business to reflect the new reality. It's the kind of business that we have to make sure that we maintain our flexibility, because we can get a phone call at any moment actually, and be asked to produce significant quantities of pallets, shelters, and containers relatively quickly. So we don't want to skinny it back too much but I would say they've done a good job making sure that the cost structure is sized properly.

我們一直在關注這類事情。我認為，該團隊在調整業務成本結構以反映新現實方面做得很好。在這種業務中，我們必須確保保持靈活性，因為實際上我們可以隨時接到電話，並被要求相對快速地生產大量托盤、庇護所和貨櫃。因此，我們不想削減太多，但我想說他們在確保成本結構規模適當方面做得很好。

Okay, second question, the new breakout in the revenue, aviation services and technology. Can you give us a sense as to how much commercial and defense business is in each of those revenue items?

好的，第二個問題，收入、航空服務和技術的新突破。您能否讓我們了解一下每個收入項目中有多少商業和國防業務？

We have it in the presentation that we just made in Florida.

我們剛剛在佛羅裡達州所做的演示中已經提到了這一點。

Jon, I don't have that with me but I can give you a call.

喬恩，我沒有帶那個，但我可以打電話給你。

Okay, that's fine. Thank you much.

好吧，沒關係。非常感謝。

Should be on our website, right?

應該在我們的網站上吧？

(Operator Instructions)

（操作員說明）

Our next question comes from the line of Stan Manning from Manning Family Investments. Your question, please?

我們的下一個問題來自曼寧家族投資公司的史丹曼寧。請問你的問題？

Yes, I have several. Can you discuss your priorities for use of cash, and specifically do you expect any more buybacks or what's left on the open on the buyback?

是的，我有幾個。您能否討論一下您使用現金的優先順序，特別是您是否期望更多的回購或回購中還剩下哪些？

Yes, so there's $42 million left on the buyback. The priorities would be to fund our growth in the business, to continue to pay down debt, and then to acquire shares.

是的，所以回購還剩下 4,200 萬美元。首要任務是為我們的業務成長提供資金，繼續償還債務，然後收購股票。

Okay. Two, I noticed that your operating margins continue to improve slowly. Do you have a feel for, directionally, the movement over the next several quarters of the year?

好的。第二，我注意到你們的營業利潤率持續緩慢提高。您對今年接下來幾季的走勢有方向性的感覺嗎？

Well directionally, we're looking to continue to improve the margin, Stan, so you know, you've been following the story long enough. We've had better margins in the past and our goal is to get our margins going in the right direction, and I think this quarter showed progress over prior quarter, and hopefully the next couple quarters will show some slow but steady improvement.

嗯，從方向上來說，我們希望繼續提高利潤，斯坦，所以你知道，你已經關注這個故事足夠長的時間了。我們過去有更好的利潤率，我們的目標是讓我們的利潤率朝著正確的方向發展，我認為本季度比上一季度取得了進步，希望接下來的幾個季度將顯示出一些緩慢但穩定的改善。

Third question. What do you see as growth opportunities in 2013 and 2014, and do you see the Telair profit model somehow spreading in the organization, modeling or helping the organization improve margins?

第三個問題。您認為 2013 年和 2014 年的成長機會是什麼？

Yes. So first of all, to answer your question, what do I see, I really like our position in the commercial market, if you look at our aviation service sector, I like the opportunities that we're looking at and the position that the Company has relative to those opportunities. I also believe that the service offerings that we have for the US DOD, as well as other DODs will be a positive for the Company. The Telair acquisition, as you can see, has been a nice addition to our family, and actually, the COO of that business unit happens to be in the room here right now. He's done a fine job prior to AAR's ownership, as well as continuing through AAR's ownership, and making that a nice contributor to our Company. There will be meetings next month with our existing or legacy cargo business to look for ways that we can look for synergies, both from the cost side as well as from the market development side, so I view that acquisition in a very positive light. I think that you're seeing some of the contributions that they've made to the Company's consolidated results in a positive light, and I see that continuing.

是的。首先，回答你的問題，我看到了什麼，我真的很喜歡我們在商業市場的地位，如果你看看我們的航空服務部門，我喜歡我們正在尋找的機會以及公司的地位與那些機會相關。我還相信，我們為美國國防部以及其他國防部提供的服務將對公司產生正面影響。正如您所看到的，收購 Telair 對我們家族來說是一個很好的補充，實際上，該業務部門的營運長現在恰好就在這裡。在收購 AAR 之前以及收購 AAR 後，他的工作都非常出色，為我們公司做出了很好的貢獻。下個月我們將與我們現有或遺留的貨運業務舉行會議，尋找我們可以從成本方面以及市場開發方面尋求協同效應的方法，因此我對這次收購持非常積極的態度。我認為您會從正面的角度看待他們對公司綜合業績做出的一些貢獻，而且我認為這種情況會持續下去。

Last question. The USAir merger with American looks more real every day. Is that possibly a very positive phenomenon for the Company over the next couple years, if the merger returns?

最後一個問題。美國航空與美國航空的合併看起來一天比一天真實。如果合併回歸，這對公司未來幾年來說可能是一個非常積極的現象嗎？

I don't know how to handicap that from happening, Stan. Actually, you and I had a conversation on this about nine months ago or so. I think it's too hard for me to comment on that. I do believe that as the American fleet sees some more efficient solutions, that AAR will benefit from that.

我不知道如何阻止這種情況發生，史丹。事實上，你和我大約九個月前就這個問題進行過對話。我認為我很難對此發表評論。我確實相信，隨著美國艦隊看到一些更有效的解決方案，AAR 將從中受益。

Okay, so it's a positive possibility?

好吧，那麼這是一個積極的可能性嗎？

I think as American moves from its current mode into its next mode, I think the Company would be well-positioned to support that entity. But I won't tell you that we have any dialogue of any nature of any significance going on with them at this moment, but US Air is a good customer of the Company and we touch them in numerous places, so we'll see what happens.

我認為，隨著美國航空從當前模式轉向下一種模式，我認為該公司將處於有利地位來支持該實體。但我不會告訴你，我們目前正在與他們進行任何性質、任何重要的對話，但全美航空是該公司的好客戶，我們在很多地方與他們接觸，所以我們會看看會發生什麼。

Last comment is the stock itself, on all measuring metrics is extremely cheap, PE, EBITDA ratio, any comments at all?

最後評論是股票本身，在所有衡量指標上都非常便宜，PE、EBITDA 比率，有什麼評論嗎？

I agree.

我同意。

Thank you. Good job, gentlemen.

謝謝。幹得好，先生們。

Thank you. Our next question comes from the line of Dan Rutter from Paragon Investment Management.

謝謝。我們的下一個問題來自 Paragon Investment Management 的 Dan Rutter。

I'm wondering if you could give a little bit of color perhaps on what to expect for a tax rate in the back half of 2013? You've got some pretty difficult comps, it looks like.

我想知道您能否對 2013 年下半年的稅率進行一些說明？看起來你有一些相當困難的比賽。

Yes, Dan, last year included both in the third and fourth quarter a couple adjustments. We're not anticipating that type of adjustment to occur right now in Q3 or Q4 so we would expect the tax rate for the back half of the year to be right in that 34.5% to 35% range.

是的，丹，去年在第三季和第四季都進行了一些調整。我們預計第三季或第四季不會發生這種類型的調整，因此我們預計今年下半年的稅率將在 34.5% 至 35% 的範圍內。

Okay, that's great. Thank you very much. I'm curious, could you kind of walk us through the accounting behind one of the aircraft that gets sold, for example, in this November 29th press announcement regarding the MAS. What do you lose in terms of maybe revenue from the lease, and how does the gain go through, and how is the joint venture accounted for in that?

好的，太好了。非常感謝。我很好奇，您能否向我們介紹其中一架出售的飛機背後的會計核算，例如 11 月 29 日有關 MAS 的新聞公告。就租賃收入而言，您損失了什麼？

So back at the end of November we announced we reached an agreement to sell 10 737-400s to the lessee. Those aircraft were acquired by AAR, and our joint venture partner back in 2007, or I believe it was 2007. And those joint ventures are non-consolidated joint ventures, so they're owned by the joint venture, so when the joint venture sells the aircraft, the sale does not go through our top line. The gain on the transaction will go through the line on the P&L that addresses earnings and aircraft joint ventures.

早在 11 月底，我們就宣布達成協議，向承租人出售 10 737-400 架飛機。這些飛機是 AAR 和我們的合資夥伴在 2007 年收購的，或者我相信是 2007 年。頂線。交易收益將透過損益表中涉及收益和飛機合資企業的欄位進行分配。

The income from the existing leases has been minimal to zero.

現有租賃的收入微乎其微，幾乎為零。

Okay. Great. Thanks.

好的。偉大的。謝謝。

Think of that transaction as a cash generator, so we reduced our obligations and the venture that was supporting the assets, and then we recaptured our cash basically, that we have invested.

將該交易視為現金產生器，因此我們減少了我們的義務和支持資產的風險投資，然後我們基本上收回了我們投資的現金。

Okay, and then real quickly, have you commented much about where you think CapEx is going to come in for the year?

好的，然後很快，您是否對今年的資本支出進行了很多評論？

We were right around $8 million for Q2, Dan, and I would expect that Q3 and Q4 is going to be a similar dollar amount, right in that roughly $8 million range.

Dan，我們第二季的金額約為 800 萬美元，我預計第三季和第四季的金額將相似，大約在 800 萬美元的範圍內。

Where was Q1? I'm sorry, I lost that number.

Q1 在哪裡？抱歉，我把那個號碼弄丟了。

Hold on a second. $10 million. $11 million.

稍等一下。 1000萬美元。 1100萬美元。

Okay. Good deal. Thanks much.

好的。好交易。非常感謝。

Thank you. Our next question is a follow-up from Larry Solow from CJS Securities. Your question, please?

謝謝。我們的下一個問題是 CJS 證券公司 Larry Solow 的後續問題。請問你的問題？

Just a couple quick follow-ups. You mentioned the Unison deal, the agreement doing better, I think when you first announced that program it was targeted at reaching somewhere in the level of $60 million over the next few years. Is it anywhere near that, or is it like continuing to ramp?

只需幾個快速跟進。你提到了 Unison 交易，該協議做得更好，我認為當你第一次宣布該計劃時，它的目標是在未來幾年達到 6000 萬美元的水平。是否接近這個水平，或是否繼續增長？

It's continuing to ramp. It's ramping very well and we're still, we still believe we're going to achieve our target.

它正在繼續升溫。它的進展非常順利，我們仍然相信我們將實現我們的目標。

Okay, how about on the precision manufacturing business? I know there was some issues in a couple quarters back, and some operating inefficiencies. Any color there on how that's progressing?

好的，精密製造業務怎麼樣？我知道幾個季度前出現了一些問題，而且營運效率低。有什麼顏色可以說明進展如何嗎？

Larry, yes we've talked a little bit about precision systems the last few quarters, and we continue to see steady improvement in that business. There was a nice improvement in Q2, and we expect that to continue in the back half of fiscal 2013.

拉里，是的，我們在過去幾個季度討論了一些精密系統，並且我們繼續看到該業務的穩步改善。第二季取得了不錯的改善，我們預計這種情況將在 2013 財年下半年持續下去。

Just two more random questions. The equity and JV line, it's a small number, but I'm just curious, it was like a million the last couple quarters, but is that, what is that from? Is that from existing leases still, or they are down to so little, or is that something else, and where will that go from here?

還有兩個隨機問題。股權和合資線，這是一個很小的數字，但我只是很好奇，過去幾個季度大約有一百萬，但那是，那是從哪裡來的？這是否仍然來自現有的租約，或者已經減少到如此之少，或者是其他原因，這將何去何從？

Yes, that's from the existing leases, as there's actually been as many of these aircraft are nearing the end of the lease, there's some, for lack of a better way to put it some settling with the lessee, and it has generally been favorable for us the last couple quarters, and there might be a little bit more that bleeds into Q3, but that's basically what accounts for what you see.

是的，這是來自現有的租約，因為實際上有很多飛機已接近租約結束，有一些飛機，由於缺乏更好的方式與承租人達成和解，而且通常有利於我們在過去的幾個季度中，可能還會有更多的情況進入第三季度，但這基本上就是您所看到的情況的原因。

So it will likely go back down to just whatever, $150,000, $200,000 whatever it was run rate?

那麼它可能會回落到 15 萬美元、20 萬美元，無論運行率是多少？

Yes.

是的。

Okay, just the last question, the component shop in Amsterdam that you guys reopened, any updates there?

好的，最後一個問題，你們重新開業的阿姆斯特丹零件商店，有什麼更新嗎？

Well, we never actually closed it.

好吧，我們從未真正關閉過它。

Right. You decided not to sell right?

正確的。你決定不賣對吧？

We attempted to sell. We weren't happy with the possibilities there. We've kept the business open. The business actually has had a nice resurgence, so we're fairly feeling much better about that business today than we felt two years ago.

我們試圖出售。我們對那裡的可能性並不滿意。我們一直在營業。這項業務實際上已經有了很好的復甦，所以我們今天對該業務的感覺比兩年前要好得多。

Well you added one new customer there, which helped your decision not to sell it, I guess, too, right?

好吧，您在那裡添加了一位新客戶，這有助於您決定不出售它，我想也是如此，對嗎？

That's correct.

這是正確的。

Okay, great. Thanks, I appreciate it.

好的，太好了。謝謝，我很感激。

Thank you. Our next question comes from the line of Tom Lewis from High Value Research. Your question, please.

謝謝。我們的下一個問題來自 High Value Research 的 Tom Lewis。請提出你的問題。

First off, you mentioned the importance of fleet turnover. I would think, thinking as how its been a year ago, we were still holding our breath wondering if Boeing would ever ship the 787 and now that seems to be providing a lot more certainty to fleet planning, and such. Do you have any comment on that? Is that a part of where some of this activity is coming from, that customers can plan better now that it's going ahead? I guess it's still four years behind plan, but you know what I mean.

首先，您提到了機隊週轉的重要性。我想，就像一年前一樣，我們仍然屏息以待，想知道波音是否會運送 787，現在這似乎為機隊規劃等提供了更多的確定性。你對此有何評論？這是否是某些活動的來源，客戶現在可以更好地進行規劃？我猜這比計劃還晚了四年，但你知道我的意思。

Yes, I think that there's some of that in there, Tom but basically, you've had decisions by Delta, you've had decisions by Southwest, you've had decisions by other carriers that may not be necessarily tied to the 787, but I do believe that as the 787 does stabilize in its delivery, that you will see more aircraft movement.

是的，我認為其中有一些內容，湯姆，但基本上，達美航空做出了決定，西南航空做出了決定，其他航空公司也做出了可能不一定與 787 相關的決定，但我確實相信，隨著787 的交付穩定下來，您將會看到更多的飛機起降。

Okay, and as far as your sale of your leasing portfolio and your stated intent to come down, but you talk about having a -- you've been there for a long time. My impression is this business that's gotten to be frankly pretty mature, and I'm wondering exactly what it is that you think you've got as a relatively small player, in what's become a business of great big players, that is what is your edge in this game at this point?

好吧，就你出售租賃組合以及你表示的降價意圖而言，但你談到了——你已經在那裡呆了很長時間了。我的印像是，坦白說，這個行業已經相當成熟了，我想知道，作為一個相對較小的參與者，你認為自己所擁有的到底是什麼，在這個已經成為偉大的大參與者的行業中，這就是你的優勢。

Yes, so I think what we've said is that we have been consciously reducing the size of our portfolio, because we are too small of a niche player. We are, however, at the same time, we have been in the business of trading and creating value around aircraft for decades now, and that activity will continue, and I think the trade we had during the quarter, where the actual aircraft will be delivered second half of the year, is indicative of the kind of capability that we have for the Company. So it's very hard for us to be in front of our customers with the kind of business we have and not be in a position to discuss whole aircraft transactions at the same time. We just don't think that we have an opportunity in the leasing end of the business.

是的，所以我認為我們所說的是我們一直在有意識地縮小我們的投資組合規模，因為我們是一個利基市場參與者，規模太小了。然而，與此同時，我們幾十年來一直從事飛機貿易和創造價值的業務，這種活動將繼續下去，我認為我們在本季度進行的貿易，實際飛機將在哪裡下半年交付的產品表明了我們公司的能力。因此，我們很難在客戶面前展示我們現有的業務，同時又無法討論整架飛機的交易。我們只是認為我們在租賃業務方面沒有機會。

In a way that arguably you did 10 years ago, sure. Okay, final question. With respect to the operation that you're opening in Duluth, and a few quarters back, we were talking a lot about mid-skill shortages and such. Can you speak to what it is about Duluth, that this is going to be less than a problem than is generally the case? Can you kind of talk, I guess, we can assume that's still a generic problem for the industry more generally?

當然，你十年前就這麼做了。好的，最後一個問題。關於您在德盧斯開設的業務，幾個季度前，我們討論了很多關於中等技能短缺等問題。您能談談德盧斯的情況嗎？我想，您能談談我們可以假設這仍然是整個行業的普遍問題嗎？

Yes, I would say that it continues to be a problem. We have worked very closely with the state and the local authorities up in Duluth to reopen the facility. The facility sat vacant for five years, it was built by Northwest in the middle of the 1990s. It's a very modern type of facility. There is a supply of mechanics that remains in the Duluth area, and there are many mechanics that migrated away from Duluth when the facility closed, who are eager to get back in town. We expect a steady ramp in labor. We've been able to pull people from some of our other MROs to fill some of the voids, and we have a robust search and training and hiring process that we expect to continue.

是的，我想說這仍然是一個問題。我們與德盧斯的州和地方當局密切合作，重新開放了該設施。該設施空置了五年，由西北航空於 20 世紀 90 年代中期建造。這是一種非常現代化的設施。德盧斯地區仍有大量機械師，而且有許多機械師在設施關閉後從德盧斯遷移，他們渴望回到城裡。我們預計勞動力將穩定成長。我們已經能夠從其他一些 MRO 中抽調人員來填補一些空白，並且我們擁有強大的搜尋、培訓和招募流程，我們希望能夠繼續下去。

I would think, as long as you still have a lot of those folks there from before, they're willing to come back, that makes all the sense in the world so that's it for me, thanks.

我想，只要那裡還有很多以前的人，他們就願意回來，這在世界上是有意義的，所以對我來說就是這樣，謝謝。

We're creating, within the Company we've created the One MRO strategy where we're creating a similar look and feel across our network, and I think it's very exciting for mechanics to know they have the flexibility to join us in any number of locations.

我們正在公司內部創建一個 MRO 策略，在整個網路中創建類似的外觀和感覺，我認為對於機械師來說，知道他們可以靈活地以任意數量加入我們是非常令人興奮的地點。

That makes a lot of sense. Thanks.

這很有意義。謝謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Our next question is a follow-up from JB Groh from D.A. Davidson. Your question, please.

我們的下一個問題是 D.A. 的 JB Groh 的後續問題。戴維森。請提出你的問題。

So if it's not cold enough in Indianapolis you can move to Duluth?

那麼，如果印第安納波利斯不夠冷，您可以搬到德盧斯嗎？

Absolutely.

絕對地。

Okay, I just had a couple questions on the defense. You mentioned that a couple of supply chain contracts were lower, but you didn't give details on which ones they were, and you said one was discontinued and one was under plan. Which are those specifically?

好吧，我只是有幾個關於辯護的問題。您提到一些供應鏈合約的價格較低，但您沒有詳細說明是哪些合同，並且您說其中一份已停產，一份正在計劃中。具體是哪些呢？

Well, the contract that discontinued was our JSTARS contract, as you'll recall last October.

嗯，終止的合約是我們的 JSTARS 合同，您還記得去年 10 月的情況。

Right, okay.

對了，好吧。

So we had some impact in last year's numbers that we were unable to replace this year, and then you've had a reduction in volumes around the KC-10 program.

因此，我們對去年的數字產生了一些今年無法替代的影響，然後 KC-10 計劃的數量就減少了。

Okay, that was my guess. And then looking at what's left in the JV portfolio, kind of what -- I know timing is hard to predict, but when would you expect that you'd be out of that completely?

好吧，這是我的猜測。然後看看合資企業投資組合中還剩下什麼，我知道時間很難預測，但你預計什麼時候才能完全擺脫困境？

Well we're expecting to complete the sale of two aircraft in this quarter, and then we're hopeful that will bring us down, we'll have two 737s remaining from the MAS fleet. We would hope that we would find places for those aircraft over the next year, keeping in mind our investment is fairly minimal once we get to that point. And then we have a couple of 767s on lease with United which right now are doing well, and we see no reason to sell them, other than if somebody comes along and offers us a price.

我們預計在本季完成兩架飛機的銷售，然後我們希望這會讓我們失望，馬航機隊中將剩下兩架 737。我們希望明年能為這些飛機找到合適的位置，但要記住，一旦達到這一點，我們的投資就相當小了。然後，我們向聯合航空租賃了幾架 767 飛機，這些飛機目前表現良好，我們認為沒有理由出售它們，除非有人來給我們報價。

What are the two that are going to be sold in the quarter?

本季將出售哪兩款產品？

737s.

737s。

And would you expect sort of a similar financial dynamic as this quarter, where it's not a big needle mover from a financial standpoint, but good cash flow generator?

您是否預計會出現與本季類似的財務動態？

Not as good a cash flow generator because we get paid over time, but it will be, in time it will be a good cash flow generator, yes.

不是一個好的現金流發生器，因為我們會隨著時間的推移而獲得報酬，但它會是的，隨著時間的推移，它將成為一個很好的現金流發生器，是的。

Thanks. That's all the follow-up I had.

謝謝。這就是我所有的後續行動。

Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to management for any further remarks.

謝謝。今天節目的問答環節到此結束。我想將該程序交還給管理層以徵求進一步的意見。

Let me just wish everybody a happy holiday and a safe holiday, and a very happy New Year, and look forward to revisiting with you folks after we finish the February quarter during our March phone call, so thank you very much. Be well.

讓我祝大家假期愉快、假期安全、新年快樂，並期待在三月的電話會議中結束二月份季度後與大家再次見面，非常感謝。祝你一切順利。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。