AAR Corp (AIR) 2013 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the AAR Corp fourth-quarter and fiscal year 2013 earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, today's conference is being recorded.

女士們、先生們，美好的一天，歡迎參加 AAR Corp 第四季和 2013 財年財報電話會議。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，屆時將發出指示。 （操作員指示）提醒一下，今天的會議正在錄製中。

I would now like to introduce your host for today's conference call, Mr. Chris Mason, Director of Corporate Communications. You may begin, sir.

現在我想介紹一下今天電話會議的主持人，企業傳訊總監 Chris Mason 先生。您可以開始了，先生。

Thank you, Kevin. Good afternoon, ladies and gentlemen, and welcome to AAR's fiscal 2013 fourth-quarter and year-end earnings call.

謝謝你，凱文。女士們、先生們，下午好，歡迎參加 AAR 2013 財年第四季和年終收益電話會議。

Before we begin, I would like to remind you that comments made during the call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 as noted in our news release and the Risk Factors section of the Company's Form 10-K for fiscal year ended May 31, 2012. In providing forward-looking statements, the Company assumes no obligation to provide updates to reflect future circumstances or anticipated or unanticipated events.

在我們開始之前，我想提醒您，電話會議期間發表的評論可能包括1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述，如我們的新聞稿和公司表格10- 的風險因素部分所述。

At this time, I'd like to turn the call over to AAR's Chairman and Chief Executive Officer, David Storch.

現在，我想將電話轉給 AAR 董事長兼執行長 David Storch。

Thank you, Chris, and good afternoon. Thank you for joining us today to discuss what has been an excellent year for AAR. I am joined in our Board Room by Tim Romenesko, our Chief Operating Officer, and Mike Sharp, our acting Chief Financial Officer.

謝謝你，克里斯，下午好。感謝您今天加入我們，討論 AAR 度過的美好的一年。我們的營運長 Tim Romenesko 和代理財務長 Mike Sharp 也加入了我們的董事會會議室。

I am also very pleased to have our incoming Chief Financial Officer, John Fortson, in the room with us here today. As you know, John joins us from Merrill Lynch, where he was the Head of the Global Capital Goods sector. Over the years John interacted with the Company and has a good familiarization of the business and the Company and the challenges and the opportunities. And we're very excited to have John join our team.

我也很高興今天有我們即將上任的財務長約翰·福特森 (John Fortson) 與我們一起來到這裡。如您所知，約翰在加入我們之前曾在美林證券 (Merrill Lynch) 擔任全球資本貨物部門主管。多年來，John 與公司互動，對業務和公司、挑戰和機會有了很好的了解。我們非常高興約翰加入我們的團隊。

I'd also like to note that in terms of leadership experience, prior to his finance career John was a Company Commander in the 82nd Airborne and is a West Point graduate. We're excited for the strength and experience he brings to our team. John will assume the CFO responsibilities effective tomorrow.

我還想指出，就領導經驗而言，約翰在從事財務工作之前曾擔任第 82 空降師的連長，並且畢業於西點軍校。我們對他為我們團隊帶來的力量和經驗感到興奮。約翰將於明天承擔財務長的職責。

I'd also like to thank Mike Sharp for the job he did as acting CFO over the past [10 months] (corrected by company after the call). Mike has been with the Company for quite some time and will continue on with the Company as our Vice President and Chief Accounting Officer and Controller.

我還要感謝 Mike Sharp 在過去 [10 個月] 中擔任代理 CFO 所做的工作（公司在電話會議後進行了更正）。麥克已經在公司工作了一段時間，並將繼續擔任公司副總裁、首席會計官和財務總監。

So moving along, here are some of the highlights from the quarter. Sales were $554 million. This solid performance was driven by continued strength in our commercial aviation businesses, including our MRO operations and Telair. Further, although we saw defense-related softness in certain areas, we continue to see strong results from our Airlift business, even with no additional aircraft or contracts being added during the year.

接下來，以下是本季的一些亮點。銷售額為 5.54 億美元。這項穩健的業績得益於我們商業航空業務的持續強勁，包括我們的 MRO 業務和 Telair。此外，儘管我們在某些​​領域看到了與國防相關的疲軟，但我們繼續看到空運業務的強勁業績，即使今年沒有增加額外的飛機或合約。

Operating income in the quarter, adjusted for a charge on the KC-10 program that Mike will give you more details about in a few minutes, grew to $39 million. And adjusted net earnings for the quarter was $0.50 per share, up nicely compared to $0.45 per share last year.

該季度的營業收入（根據 KC-10 計劃的費用進行調整）增長至 3900 萬美元，邁克將在幾分鐘內向您提供更多詳細資訊。該季度調整後淨利潤為每股 0.50 美元，較去年每股 0.45 美元大幅成長。

And for the full year sales were $2.14 billion, an increase of 3.5%. We grew adjusted operating income by 5.9% to $152.4 million, and we reported adjusted diluted earnings per share of $1.85.

全年銷售額為 21.4 億美元，成長 3.5%。調整後營業收入成長 5.9%，達到 1.524 億美元，調整後稀釋每股收益為 1.85 美元。

As we look back at the year it is important to point out that we also generated $125 million of free cash flow, allowing us to reduce our net debt position by $91 million. We retired the 1.75% convertible notes, which also reduced the number of shares used in our diluted share count by 3.4 million shares. We bought back nearly 1 million shares of common stock at an average price of $14.90. We paid out $0.30 per share in dividends. And we also refinanced a portion of our revolver debt, locking in at a low interest rate.

當我們回顧這一年時，需要指出的是，我們還產生了 1.25 億美元的自由現金流，使我們的淨債務部位減少了 9,100 萬美元。我們廢除了 1.75% 的可轉換票據，這也使稀釋後的股票數量減少了 340 萬股。我們以 14.90 美元的平均價格回購了近 100 萬股普通股。我們支付每股 0.30 美元的股息。我們也對部分左輪債務進行了再融資，鎖定低利率。

As you can see, we are working to pull all of the appropriate levers that create value for our shareholders. We're pleased with what we accomplished, both in the quarter and in the year.

正如您所看到的，我們正在努力利用所有適當的手段為股東創造價值。我們對本季和今年所取得的成就感到滿意。

So if I may, Aviation Services, our segment performed well in the fourth quarter with sales up 7% versus prior year. I want to take a moment, if I could, and recognize the incredible work that our employees at our airlift business are doing on the ground and in the air in Afghanistan and other locations. This is not easy work and these teammates are performing brilliantly. They've demonstrated exceptional levels of reliability and performance. Airlift revenues grew by 28% this year, strictly due to outstanding operational performance and high levels of readiness.

因此，如果可以的話，我們的航空服務部門在第四季度表現良好，銷售額比去年同期成長了 7%。如果可以的話，我想花一點時間來認識我們空運業務的員工在阿富汗和其他地方的地面和空中所做的令人難以置信的工作。這不是一件容易的事，這些隊友的表現非常出色。他們展示了卓越的可靠性和性能水平。今年空運收入成長了 28%，這完全歸功於出色的營運績效和高水準的準備。

We were pleased that the US Transportation Command awarded us an option year extension of $98 million for our fixed wing aircraft. This covers a meaningful portion of our revenue expectations for the year ahead and, in general, demand remains strong.

我們很高興美國運輸司令部為我們的固定翼飛機授予了 9800 萬美元的選項年延期。這涵蓋了我們未來一年收入預期的很大一部分，總體而言，需求仍然強勁。

We remain confident that our operational readiness will continue at high levels in the coming year. When we bought this business in 2010 we saw long-term demand for this type of capability. Early on we faced certain challenges transitioning the business and over the past year we've made great progress, exceeding our operational plan, and positioning the Company for the future.

我們仍然相信，來年我們的營運準備將繼續保持在高水準。當我們在 2010 年收購該業務時，我們看到了對此類功能的長期需求。在早期，我們在業務轉型方面遇到了一些挑戰，但在過去的一年裡，我們取得了巨大進步，超越了我們的營運計劃，並為公司的未來做好了定位。

In MRO I'd like to share with you that we had a very strong fourth quarter, an excellent year, and this continues to be a growth business for the Company. To update you on our operations, we have facilities in Indianapolis, Miami, Oklahoma City, and Hot Springs. In this fiscal year we added Duluth. We delivered close to 5 million man hours of work this year which, in essence, is showing steady growth over prior year.

在 MRO 方面，我想與您分享的是，我們的第四季度非常強勁，是出色的一年，這仍然是公司的成長業務。為了向您介紹我們的營運情況，我們在印第安納波利斯、邁阿密、俄克拉荷馬城和溫泉城設有工廠。在本財年，我們增加了德盧斯。今年我們交付了近 500 萬工時，實質上比去年表現出穩定成長。

We continue to drive efficiencies in our operations and as a result we are seeing improvements in margins. We have a strong position in the US domestic narrow body market and now we are looking for opportunities to serve the wide body market, as well as to see if we can grow our footprint internationally.

我們繼續提高營運效率，因此我們看到了利潤率的提高。我們在美國國內窄體飛機市場擁有強大的地位，現在我們正在尋找服務寬體飛機市場的機會，並看看我們是否可以擴大我們的國際影響力。

Very pleased with the progress we've made operationally. We've caught the notice of people not just here in the States but also around the globe. And this is creating opportunities for the Company that in the past we didn't necessarily see.

對我們在營運方面取得的進展感到非常滿意。我們不僅引起了美國人民的注意，也引起了全球各地人們的注意。這為公司創造了過去我們不一定看到的機會。

Our commercial supply chain management and parts support business had a solid quarter. We see steady demand for our products on the commercial side and our view is the spares market remains fundamentally healthy and is expected to pick up over the next several months. And as many of you know who have been following the Company for quite some time, we have a really good leadership position in this market. And our view is that there's tremendous opportunities for us to go ahead and hit it off of our current position and see steady growth as some real exciting stuff happen in that business for the next year in front of us.

我們的商業供應鏈管理和零件支援業務在本季表現強勁。我們看到商業方面對我們產品的穩定需求，我們認為備件市場基本上保持健康，預計在未來幾個月內將回升。正如你們許多人已經關注公司相當長一段時間的人所知，我們在這個市場上擁有非常好的領導地位。我們的觀點是，我們有巨大的機會繼續前進，擺脫當前的困境，並看到穩定的成長，因為明年我們的業務將發生一些真正令人興奮的事情。

We did see some weakness in our defense logistics business, largely due to the fall-off in activity in the KC-10 program. Mike will give you the details, but as a result of adjusting our forecast to reflect lower flying activity we incurred a $19.5 million after-tax charge in the quarter. Flight hours on the KC-10 program have been at historically low levels. We are, however, continuing to seek ways to improve the economics of this program.

我們確實看到我們的國防後勤業務出現了一些疲軟，這主要是由於 KC-10 專案活動的減少。麥克將向您提供詳細信息，但由於調整了我們的預測以反映飛行活動的減少，我們在本季度產生了 1,950 萬美元的稅後費用。 KC-10 專案的飛行時間一直處於歷史低點。然而，我們正在繼續尋找提高該計劃經濟效益的方法。

In the fourth quarter we delivered one of two specially modified aircraft to the Colombian Air Force that we discussed during our last call. The second aircraft has been delivered in the first quarter of fiscal 2014. This project is a great example of a complex undertaking that brought together over eight different teams within AAR and is representative of our unique and integrated capabilities.

在第四季度，我們向哥倫比亞空軍交付了兩架經過特殊改裝的飛機中的一架，這也是我們在上次通話中討論的。第二架飛機已於 2014 財年第一季交付。

As an additional piece of good news, we announced yesterday an award to deliver two customized 737 aircraft to the US Marshals Service. In both these instances, these were aircraft that we went out into the market and procured. We managed the aircraft through overhauls and conversions, and we managed the engine overhauls, landing gear overhauls, et cetera. So I think it's a good example of the capability that AAR has. And in both regards these are defense and government related customers looking for lower cost solutions.

另外一個好消息是，我們昨天宣布授予美國法警局交付兩架客製 737 飛機的合約。在這兩種情況下，這些都是我們進入市場並購買的飛機。我們透過大修和改裝來管理飛機，並管理引擎大修、起落架大修等等。所以我認為這是 AAR 擁有能力的一個很好的例子。在這兩方面，這些都是尋求更低成本解決方案的國防和政府相關客戶。

In Technology Products, we've had good results -- we continue to see good results from the acquisitions of Telair and Nordisk. And of course those give us a lot more exposure in this sector towards the commercial markets. But overall this past year has been a challenging one, given the pressure on defense budgets and its impact specifically on our mobility business. We had a significant decline in revenues as we had forecasted during this period in mobility. And yet we were able to go ahead and still have a -- I might add that even though they've had a significant reduction in revenues, they still are running a profitable business with decent margins.

在技​​術產品方面，我們取得了良好的成果——我們繼續看到收購 Telair 和 Nordisk 的良好成果。當然，這些讓我們在這個領域對商業市場有更多的接觸。但總體而言，考慮到國防預算的壓力及其對我們移動業務的影響，過去的一年是充滿挑戰的一年。正如我們在此期間的流動性預測一樣，我們的收入大幅下降。然而，我們能夠繼續前進，並且仍然擁有——我可能會補充一點，儘管他們的收入大幅減少，但他們仍然在經營利潤豐厚的盈利業務。

Telair showed improvement and finished the year with a particularly strong quarter if we look at it on a year-over-year basis. And at Nordisk we're in the process of introducing some new products, one of which is around fire contamination and elimination with a venture that we have with our partner DuPont.

如果我們與去年同期相比，Telair 表現出了進步，並以特別強勁的季度結束了這一年。在諾德，我們正在推出一些新產品，其中之一是我們與合作夥伴杜邦公司合作的有關火災污染和消除的產品。

In closing, as we move along in our new fiscal year we will continue to focus on execution. We'll look for ways to grow our business, to improve our margins, and we will remain focused on cash generation, something that we're very proud of as you review this year's results. And the goal is to provide superior products and services to our clients and to deliver overall value to our shareholders.

最後，隨著新財年的進展，我們將繼續專注於執行力。我們將尋找發展業務、提高利潤的方法，我們將繼續專注於現金生成，當您回顧今年的業績時，我們對此感到非常自豪。我們的目標是為客戶提供卓越的產品和服務，並為股東創造整體價值。

So with that I'd like to turn the call over to Mike and fill you in on some of the financial details.

因此，我想將電話轉給麥克，並向您提供一些財務詳細資訊。

Okay. Thanks, David.

好的。謝謝，大衛。

I will now provide a bit more color around the financial performance of the Company during the fourth quarter, including comments around interest, cash flow, capital expenditures, and capital structure. John and I will both be available the rest of the day to answer any questions that you may have.

我現在將提供有關公司第四季度財務業績的更多信息，包括有關利息、現金流量、資本支出和資本結構的評論。約翰和我將在當天剩餘的時間裡回答您可能提出的任何問題。

As David mentioned, revenues in the fourth quarter were $554 million versus the prior-year level of $563 million. Aviation Services revenue grew 7% to $417 million, driven by strong performance at Airlift and in our airframe maintenance facilities, offset slightly by lower revenues in aftermarket support for our defense customers. Our airframe maintenance facilities continued to perform well and at high capacity utilization. Our Duluth facility is up and running with two lines and expected to go to a third line in September.

正如 David 所提到的，第四季的營收為 5.54 億美元，而去年同期為 5.63 億美元。航空服務收入成長 7%，達到 4.17 億美元，這得益於 Airlift 和機身維護設施的強勁業績，但國防客戶售後支援收入的下降略有抵消。我們的機身維護設施持續表現良好，產能利用率很高。我們的德盧斯工廠已建成並運行兩條生產線，預計將於 9 月投入第三條生產線。

Technology Products revenue declined 21% year over year to $137 million, driven largely by the expected decline in demand for mobility products, which saw a $47 million sales decline in the fourth quarter compared to the fourth quarter of last year. This was positively offset by strength, as David mentioned, in commercial cargo systems, which rebounded in the quarter.

科技產品營收年減 21% 至 1.37 億美元，主要是由於行動產品需求預期下降，第四季銷售額較去年第四季下降 4,700 萬美元。正如大衛所提到的，商業貨運系統的實力在本季度反彈，這一點被積極抵消。

Consolidated gross profit margin in the fourth quarter was 10.9% and includes the KC-10 related charge.

第四季綜合毛利率為 10.9%，其中包括 KC-10 相關費用。

As you know, we are currently in the middle of a multiyear support program teaming with Northrop Grumman to support the Air Force's fleet of KC-10 aircraft. Our primary responsibilities include inventory management and repairs of critical components. The contract has two primary revenue streams -- first, a "flight-hour" stream for which we are paid based on hours flown. And the second revenue stream is the "over-and-above", which is for services not covered in the flight hour portion.

如您所知，我們目前正在與諾斯羅普格魯曼公司合作實施多年支援計劃，以支援空軍的 KC-10 飛機機隊。我們的主要職責包括庫存管理和關鍵零件的維修。該合約有兩個主要收入來源——首先是「飛行小時」收入來源，我們根據飛行時間獲得報酬。第二個收入來源是“額外收入”，即飛行小時部分未涵蓋的服務。

Under generally accepted accounting principles we are required to project the future profitability of the flight-hour portion over the life of the program. In order to make those projections we have to estimate future flight hours, as well as costs to support the fleet. In fiscal 2012 we reduced the profit margin on the flight-hour portion of the contract from 8% to 2% due to higher than expected costs.

根據公認的會計原則，我們需要預測專案生命週期內飛行小時部分的未來獲利能力。為了做出這些預測，我們必須估計未來的飛行時間以及支援機隊的成本。 2012 財年，由於成本高於預期，我們將合約飛行小時部分的利潤率從 8% 降至 2%。

As we entered fiscal 2013, in order to support the 2% margin, we established cost-saving targets to reduce spend over the life of the program. I'm pleased to report that we exceeded our first-year savings targets. However, beginning in the second half of fiscal 2013 we experienced a decrease in flight-hour revenue due to lower operations tempo and what we believe were the effects of sequestration. To put this in perspective, the annualized level of flight hours in the second half of fiscal 2013 was 28% lower compared with the annualized level of flight hours in the first half of the year.

當我們進入 2013 財年時，為了支持 2% 的利潤率，我們制定了成本節約目標，以減少計畫生命週期內的支出。我很高興地報告，我們超出了第一年的節省目標。然而，從 2013 財年下半年開始，由於營運節奏降低以及我們認為是封存的影響，我們的飛行小時收入有所下降。從這個角度來看，2013財年下半年的飛行時數年化水準比上半年的飛行時數年化水準下降了28%。

As a result of this unexpected and significant decline in flight-hour revenue, together with our revised forecast for future usage of the fleet which is below our previous forecast and below historical usage, we further lowered the revenue and profitability forecast for the flight-hour portion of the contract, resulting in the $19.5 million after-tax charge during the fourth quarter.

由於飛行小時收入出現意外大幅下降，加上我們對機隊未來使用情況的修訂預測低於先前的預測和歷史使用情況，我們進一步下調了飛行小時的收入和盈利預測合約的一部分，導致第四季度稅後費用為1,950 萬美元。

In fiscal 2014 we will record 0% margin on the flight-hour portion of the contract, which is estimated to be approximately $45 million of revenue. And for the over-and-above portion we will record normal margins on approximately $35 million to $40 million in revenue. Adjusting for this charge, the gross profit margin in the Aviation Services segment was 16.1%.

2014 財年，我們將在合約的飛行小時部分實現 0% 的利潤率，預計收入約為 4500 萬美元。對於超出部分，我們將記錄約 3500 萬至 4000 萬美元收入的正常利潤。調整此項費用後，航空服務部門的毛利率為 16.1%。

As for the Technology Products segment, the gross profit margin came in at 15.1%, which was below our expectations due to our machining unit missing its targets. Midway through the fourth quarter we began to implement a series of initiatives to improve the performance of our machining centers, including further integration with other manufacturing centers in the Technology Products segment.

至於技術產品分部，毛利率為 15.1%，低於我們的預期，因為我們的加工部門未達到目標。在第四季中期，我們開始實施一系列措施來提高加工中心的性能，包括與技術產品領域的其他製造中心進一步整合。

Moving on, SG&A as a percentage of sales in the fourth quarter was 9.5%, which is in line with our overall expectations. Net interest expense for the fourth quarter was $9.6 million, a reduction of $1.8 million from the prior year due to lower overall debt levels.

接下來，第四季的 SG&A 佔銷售額的百分比為 9.5%，符合我們的整體預期。由於整體債務水準較低，第四季淨利息支出為 960 萬美元，較上年減少 180 萬美元。

As David mentioned, we're very focused on cash generation. During the quarter we generated $75.1 million of cash from operations and our CapEx was $13.7 million. Full-year cash from operations was a record $162.9 million and free cash flow was $125.3 million.

正如大衛所提到的，我們非常關注現金生成。本季我們的營運現金為 7,510 萬美元，資本支出為 1,370 萬美元。全年營運現金達到創紀錄的 1.629 億美元，自由現金流為 1.253 億美元。

During the fourth quarter depreciation and amortization, including amortization of stock-based compensation, was $22.5 million.

第四季的折舊和攤提（包括股票薪資攤提）為 2,250 萬美元。

As it relates to our capital structure, in late April we completed an add-on offering of $150 million principal amount of our 7.25% notes. The notes were sold at a price equal to 107.5 of the principal amount for a yield to maturity of 6.128%. The net proceeds after expenses were approximately $158 million and were used to reduce the outstanding borrowings on our revolving credit agreement. At May 31 there was $120 million outstanding under our revolver compared to $280 million last year.

由於與我們的資本結構相關，我們於 4 月底完成了 7.25% 票據本金 1.5 億美元的追加發行。這些票據的出售價格相當於本金的 107.5 倍，到期收益率為 6.128%。扣除費用後的淨收益約為 1.58 億美元，用於減少我們循環信貸協議中的未償還借款。截至 5 月 31 日，我們的左輪手槍餘額為 1.2 億美元，而去年為 2.8 億美元。

Our net debt to capital ratio is 40.8% at May 31, 2013 compared to 45.6% last year.

截至2013年5月31日，我們的淨負債與資本比率為40.8%，去年為45.6%。

We enter fiscal 2014 with 38.6 million shares in the diluted share count, which is a full 4 million shares below last year at this time.

進入 2014 財年，稀釋後的股票數量為 3,860 萬股，比去年足足減少了 400 萬股。

Thanks for your attention. And I will now turn the call back over to David for some closing comments.

感謝您的關注。現在我將把電話轉回給大衛，請他發表一些結束語。

Thanks, Mike.

謝謝，麥克。

Let me conclude with our guidance for fiscal year 2014. As stated in our press release today, we currently expect 2014 consolidated sales in a range of $2.175 billion to $2.225 billion.

讓我以我們對 2014 財年的指導作為結束語。

In Aviation Services we expect to see continued strength in our supply chain and MRO repair businesses. We also expect our Airlift business to continue to perform well as we work towards identifying and capturing additional market opportunities.

在航空服務領域，我們預計我們的供應鏈和 MRO 維修業務將持續強勁。我們也期望我們的空運業務在我們努力識別和抓住更多市場機會的過程中繼續表現良好。

In our Technology Products business we expect to see revenue stability and defense environment that remains under pressure. We believe our mobility products business, which was a major source of pressure in 2013, has leveled off. Our major initiatives in this segment are focused on operating efficiencies and innovations in lightweight solutions.

在我們的技術產品業務中，我們預期收入穩定，國防環境仍然面臨壓力。我們相信我們的行動產品業務（2013 年的主要壓力來源）已經趨於平穩。我們在這一領域的主要措施著重於輕量級解決方案的營運效率和創新。

Across the Company we intend to continue to drive improvement in our operating margin. As a result, we are currently guiding for full-year diluted earnings per share in a range of $2.00 to $2.05.

在整個公司範圍內，我們打算繼續推動營業利潤率的提高。因此，我們目前預計全年攤薄每股收益將介於 2.00 美元至 2.05 美元之間。

At this time I'd like to thank you for your participation in listening to our update. And we're now open for any questions you might have.

在此，我要感謝您參與收聽我們的最新動態。我們現在願意回答您可能提出的任何問題。

(Operator Instructions) Larry Solow; CJS Securities.

（操作員指令）拉里·索洛；希捷證券。

David, I was wondering -- or Tim, or whoever -- if you guys just could give us a read on the aviation market in general, sort of where your customers stand, where you think -- sort of your pulse as we stand today.

大衛，我想知道——或者蒂姆，或者其他人——你們能否給我們介紹整個航空市場，你們的客戶的立場，你們的想法——你們今天的脈搏。

Yes, we feel pretty good about the commercial markets. We think we had a good year. We have a fair amount of initiatives under way. We have more visibility to opportunities than we've had in the past. So, yes, I think that the commercial markets look okay.

是的，我們對商業市場感覺很好。我們認為我們度過了美好的一年。我們正在進行大量措施。與過去相比，我們對機會有了更多的了解。所以，是的，我認為商業市場看起來還不錯。

So do things sort of, you know, capacity wise and load factors -- it seems like things are sort of slowly ticking up? Is that fair to say?

那麼，你知道，容量和負載因素方面的情況是不是——看起來情況正在緩慢上升？這麼說公平嗎？

Yes. Our sense is that our customers are doing well and that they're looking at a lot of different things. And they're looking at a lot -- there's a lot of moving pieces. You have the Delta taking on the Southwest aircraft, the 717. You have our building up of our people count, if you will, in Duluth so we can handle more work up there. Yes, our international business opportunity pool looks pretty strong. So I'd say all in all -- you know, our distribution business has done well. We didn't really disclose much, or talk much about Unison, but our Unison distribution business was very strong, double-digit growth on a year-over-year basis.

是的。我們的感覺是，我們的客戶做得很好，他們正在考慮很多不同的事情。他們正在關注很多——有很多變化的部分。達美航空與西南航空的 717 飛機進行對抗。是的，我們的國際商機庫看起來相當強大。所以我想說，總而言之，我們的分銷業務做得很好。我們並沒有真正透露太多，也沒有太多談論 Unison，但我們的 Unison 分銷業務非常強勁，同比增長兩位數。

So, yes, I think we've got a lot of good stuff going on. The MRO shops are full, they're pretty busy. Of course it's summer time so they're a little less full than they've been in other parts of the year. But on a year-over-year basis they're fairly strong. We continue to seek out engineering service opportunities but the demand is there. There's a few situations that we're competing for that we hope to win.

所以，是的，我認為我們正在做很多好事。 MRO 商店已經滿了，非常繁忙。當然，現在是夏季，所以他們的人數比一年中其他時候要少一些。但與去年同期相比，它們相當強勁。我們繼續尋找工程服務機會，但需求是存在的。我們正在競爭一些希望能夠獲勝的情況。

So, yes, I'd say the feel is pretty good on the commercial side.

所以，是的，我想說，從商業角度來看，這種感覺非常好。

Just two thoughts. The Unison deal, I think when you signed it it was supposed to ramp and inevitably reach sort of I think $600 million plus or minus over 10 years. Is it sort of reaching its $60-million-plus potential sales?

只是兩個想法。 Unison 的交易，我認為當你簽署它時，它應該會逐漸增加，並且在 10 年內不可避免地達到 6 億美元上下。它是否達到了 6000 萬美元以上的潛在銷售額？

Not quite there this year. I think that we should start hitting that target this year we're coming up to and the following year. But we do have nice progress from Year 1 to Year 2. And we would expect that progress -- there's no reason to believe that progress won't continue into Year 3 and on to Year 4.

今年不太好。我認為我們應該開始實現今年和明年的目標。但從第一年到第二年，我們確實取得了不錯的進展。

Could you just remind me on the Colombian Air Force -- I think you probably discussed this last quarter -- but what the general -- what was the impact on the P&L? And would the sale, the deal you announced yesterday would be similar?

您能否提醒我關於哥倫比亞空軍的問題 - 我想您可能在上個季度討論過這個問題 - 但總體而言 - 對損益表的影響是什麼？您昨天宣布的出售和交易會類似嗎？

Yes, so the Colombian deal was we took two commercial aircraft and we converted one to a freighter, full freighter. And we converted one into a combi, which is part freighter, part passenger. We delivered the first aircraft in Q4. It had a -- not a significant impact on earnings. It had good impact on cash because we utilized some assets that we had in stock to fit onto the aircraft, so we converted some inventory into cash. But we still our margins. It was still a profitable transaction, contributed to the quarter's results.

是的，哥倫比亞的協議是我們購買了兩架商用飛機，然後將其中一架改裝成貨機，全貨機。我們將其中一架改裝成兩棲飛機，一部分是貨機，一部分是客運了。我們在第四季交付了第一架飛機。它對收益沒有產生重大影響。這對現金產生了良好的影響，因為我們利用了一些庫存資產來安裝飛機，因此我們將一些庫存轉換為現金。但我們仍然有利潤。這仍然是一項有利可圖的交易，為該季度的業績做出了貢獻。

And then, the second aircraft delivered earlier this month to the customer and had a little bit better margin than the first aircraft. And, yes, I think it was a good transaction for the Company. And we've also received some follow-on business and we have reason to believe that there may be more business opportunities for the Company with the customer. They're very pleased with the product. They showcased both aircraft at their air show on July 11th this month. And the aircraft will be on show at a Chilean air show in March next year.

然後，第二架飛機於本月初交付給客戶，利潤率比第一架飛機稍好。是的，我認為這對公司來說是一筆很好的交易。而我們也收到了一些後續業務，我們有理由相信公司與客戶之間可能會有更多的業務機會。他們對產品非常滿意。他們在本月 7 月 11 日的航展上展示了這兩架飛機。該飛機將於明年三月在智利航展上展出。

Okay. Last question, just on free cash flow, which was ridiculously good this year. I mean, is that -- over $3.00 a share versus $1.80 or whatever in EPS. Is that sort of I imagine not quite sustainable? But how should we look at that as we go out?

好的。最後一個問題是關於自由現金流，今年的自由現金流好得離譜。我的意思是，每股超過 3.00 美元，而 EPS 為 1.80 美元或其他。我認為這種情況不太可持續嗎？但我們走出去時該如何看待呢？

This is a very critical component for us, so we're working very hard. Compensation plans are tied to cash flow generation. So the businesses are very focused on turning lazy assets into cash as well as generating better margins and better throughput. So hard for me to quantify precisely if we get to the same level. But I think directionally we'll be in the same zip code. We will not have the same kind of yo-yo effect that we've had in prior years when we've had successful cash generation. We believe this cash flow will be steady.

這對我們來說是非常關鍵的組成部分，因此我們正在努力工作。薪酬計畫與現金流的產生掛鉤。因此，企業非常注重將惰性資產轉化為現金，並產生更好的利潤和更高的吞吐量。如果我們達到相同的水平，我很難準確地量化。但我認為從方向上來說我們會使用相同的郵遞區號。我們不會像前幾年成功創造現金時那樣產生溜溜球效應。我們相信該現金流將保持穩定。

Great. Thanks so much.

偉大的。非常感謝。

Will they be exactly at these levels, Larry? Maybe not, but they will be solid -- you should see solid cash flow numbers coming from the Company this year.

拉里，他們會達到這些水準嗎？也許不會，但它們將會很穩定——你應該會看到公司今年的穩定現金流數據。

Got it. Appreciate it. Thanks, guys.

知道了。欣賞它。多謝你們。

J.B. Groh; D.A. Davidson.

J.B.格羅； DA戴維森。

I had a question on your realignment of the KC-10 business. I know you've baked in $45 million at 0% margin. Is there any potential upside to that if you can work on some costs?

我有一個關於 KC-10 業務重組的問題。我知道你們以 0% 的利潤賺了 4500 萬美元。如果您可以降低一些成本，這是否有任何潛在的好處？

Yes. The upside will be on the flight hours. So we've taken a conservative look at the flight hours as a result of what we've experienced the last six months. And we're forecasting a fairly low aircraft utilization. And our revenue from the flight hours comes through the utilization or the number of flight hours that they operate. So we have modeled in very low hours. If we get a pickup as a result of the movement of assets away from Afghanistan or if there's a buildup in Syria or a place like -- or something like that, then we would expect the business to be more profitable than the 0% that we now have baked in.

是的。好處在於飛行時間。因此，根據過去六個月的經歷，我們對飛行時間採取了保守的態度。我們預計飛機利用率相當低。我們的飛行小時收入來自於他們營運的使用率或飛行小時數。所以我們在很短的時間內完成了建模工作。如果我們因為資產從阿富汗轉移而獲得回升，或者如果在敘利亞或類似的地方有資產積累，那麼我們預計該業務的利潤將比我們預期的 0% 更高。

But has the customer told you any reason why the flight hours numbers are down so significantly?

但客戶是否告訴您飛行時間大幅減少的原因？

No. No, the customer has not divulged. First of all, our customer is Northrop Grumman. Northrop Grumman's customer is the Air Force.

不，不，客戶沒有透露。首先，我們的客戶是諾斯羅普·格魯曼公司。諾斯羅普·格魯曼公司的客戶是空軍。

Right.

正確的。

We have had indirect contact with the Air Force, but most of our contact is directly through Northrop. And they do not have visibility precisely as to why or visibility as to what we should be expecting.

我們與空軍有間接接觸，但大部分的接觸是直接透過諾斯羅普進行。他們無法準確地了解為什麼或我們應該期待什麼。

Now, what we've done is we've looked at the flight hours going back since 1998. And that's as far back as we can get records. And we have been forecasting average usage in the fleet and we've been a little bit disappointed, or surprised, at the actual usage which is at this historical low level. So we think we took a prudent action at this point in time. And if the flight hours resumed to historical levels, then this segment of the contract will be -- once again will be profitable.

現在，我們所做的是查看自 1998 年以來的飛行時間。我們一直在預測機隊的平均使用率，但我們對處於歷史低水平的實際使用率感到有點失望或驚訝。所以我們認為我們此時採取了謹慎的行動。如果飛行時間恢復到歷史水平，那麼這部分合約將再次實現盈利。

Okay. And then you mentioned pretty decent results in Airlift and it sounds like you perhaps picked up some share there. Is that correct?

好的。然後你提到了 Airlift 的相當不錯的業績，聽起來你可能在那裡獲得了一些份額。那是對的嗎？

No, I think what we've seen is we've operated the aircraft much more efficiently than we have in the past. So you may recall, J.B., when we bought this business we thought there was about $25 million of income on the table that could be assumed once we were able to put certain disciplines in place and keep the aircraft operationally ready. And the team led by Randy Martinez has done a remarkable job this past year in having those aircraft in a ready position. So the growth that we've had is really actually with fewer aircraft in theater. We've had a significant growth in sales and in income coming from that business.

不，我認為我們所看到的是我們操作飛機的效率比過去高得多。 J.B.，你可能還記得，當我們收購這家公司時，我們認為一旦我們能夠制定某些紀律並保持飛機處於運行狀態，就可以假定大約有 2500 萬美元的收入。蘭迪·馬丁內斯 (Randy Martinez) 領導的團隊去年在讓這些飛機處於就緒狀態方面做得非常出色。因此，我們的成長實際上是在戰區飛機數量減少的情況下實現的。我們的銷售額和來自該業務的收入顯著增長。

So just better utilization and asset management is what you're saying?

那麼您所說的只是更好的利用率和資產管理？

Absolutely. We've actually freed up some assets that we can possibly apply elsewhere or, if not, sell.

絕對地。我們實際上已經釋放了一些資產，我們可以將它們應用到其他地方，或者如果沒有，就出售。

But with all the talk of the drawdown and that sort of thing, is that market still -- I mean, is it growing in terms of more outsourcing and more potential bid activity?

但隨著所有關於縮減和諸如此類的事情的討論，這個市場是否仍然——我的意思是，它是否在更多的外包和更多潛在的投標活動方面增長？

There's additional demand, actually. As we sit here today there's a demand that's been identified in Afghanistan, so there is an RFP that's on the street to support the Afghan nationals. So we are in there with a bid and hopefully we'll have news in the next few weeks. Other than that, we are looking for other places where we can get utilization and take some market share. As we've talked about before, there is a pretty broad and varied application for this kind of capability across different government entities. And it would be our intention to go ahead and compete and capture some of that business.

實際上還有額外的需求。當我們今天坐在這裡時，阿富汗已經確定了一個需求，因此街上有一個徵求建議書來支持阿富汗國民。所以我們正在出價，希望我們能在接下來的幾週內得到消息。除此之外，我們正在尋找其他可以利用並佔據一些市場份額的地方。正如我們之前討論過的，這種功能在不同的政府實體中有相當廣泛且多樣化的應用。我們打算繼續競爭並佔領一些業務。

And maybe you guys can give us a portfolio update in terms of the owned aircraft and the ones that are in the JV.

也許你們可以提供我們有關自有飛機和合資飛機的投資組合更新。

We're talking about the aircraft leasing portfolio now?

我們現在談的是飛機租賃組合？

Yes.

是的。

Mike?

麥克風？

Yes. J.B, there's 6 aircraft in total; 2 of the aircraft are wholly owned and there are 4 aircraft that are owned under joint venture.

是的。 J.B，總共有6架飛機；其中獨資飛機2架，合資飛機4架。

Okay.

好的。

J.B., also keep in mind now, these aircraft that we've been talking about that we traded here with the US Marshals Service and with the Colombians were aircraft that we did not own before we made these transactions. So these aircraft did not come from our inventory. They were aircraft that we sourced, purchased, fixed and then in some cases modified and then sold.

J.B.，現在也請記住，我們一直在談論的這些與美國法警局和哥倫比亞人交易的飛機在我們進行這些交易之前並不是我們擁有的。所以這些飛機不是來自我們的庫存。我們採購、購買、修理這些飛機，然後在某些情況下進行改裝，然後出售。

Great. Hey, and then lastly, Mike, could you maybe give us what's embedded in your 2014 outlook in terms of a tax rate and interest expense?

偉大的。嘿，最後，麥克，您能否向我們介紹一下 2014 年稅率和利息支出方面的展望？

So, for the tax rate we're thinking in the 34% to 35% range, which is where we historically have been, not withstanding some of the benefits that we've had from some of the state planning tax planning strategies we've incorporated over the last couple years.

因此，對於稅率，我們考慮在 34% 到 35% 的範圍內，這是我們歷史上一直在的水平，儘管我們從一些國家規劃稅務規劃策略中獲得了一些好處。 。

In terms of interest, it's fairly steady with the fourth-quarter interest level.

從利息來看，與第四季的利息水準相當穩定。

Okay. So about $9.6 million net?

好的。那麼淨額約為 960 萬美元？

Maybe slightly higher.

也許稍微高一點。

Okay. All right. Thanks a lot.

好的。好的。多謝。

Jon Braatz; Kansas City Capital.

喬恩‧布拉茨；堪薩斯城首府。

David, could you talk a little bit about the A400 program? I think the planes start flying. Do you expect any revenue from that program this year?

David，您能談談 A400 計畫嗎？我認為飛機開始飛行。您預計今年該計劃會帶來收入嗎？

Yes. Yes, we should have revenue -- we could have revenue as early as Q1, but we will have that revenue in Q2. The program, as you said, is very -- they're very close. They have not delivered the first aircraft, which is MSN7, to the French Air Force yet. But they are planning to do that pretty much any day now.

是的。是的，我們應該有收入——我們最早可以在第一季就有收入，但我們將在第二季獲得收入。正如你所說，這個計劃非常——它們非常接近。他們尚未向法國空軍交付第一架飛機 MSN7。但他們現在幾乎隨時都會這麼做。

Okay.

好的。

It should happen before this month is out, actually. So, yes, we've made a lot of progress on that program.

實際上，這應該在本月結束之前發生。所以，是的，我們在該計劃上取得了很大進展。

Now, I think the program has shrunk from the original size and you've capitalized a lot of costs associated with that program. Is there any risk that you might have to write off some of those costs? Or how is that going to be reflected in the revenues coming on-stream?

現在，我認為該計劃已經比原來的規模縮小了，並且您已經資本化了與該計劃相關的大量成本。您是否有必須沖銷部分成本的風險？或者這將如何反映在即將上線的收入中？

As we see it now, based on the price that we have per system -- we did have a renegotiation with Airbus that we completed here recently. In that renegotiation we have identified kind of scope of work that we will now be doing, which is slightly less than the original scope. And then we have a pricing, which is very similar to the pricing we had for the full scope. We anticipate that over the life of the program we will recover our investment through the selling price that we have.

正如我們現在所看到的，根據我們每個系統的價格——我們確實與空中巴士公司進行了重新談判，最近我們在這裡完成了談判。在那次重新談判中，我們確定了我們現在要做的工作範圍，略小於原來的範圍。然後我們有一個定價，這與我們對整個範圍的定價非常相似。我們預計，在該計劃的整個生命週期中，我們將透過現有的售價收回投資。

We also will have spare sales. We've had some already. We had some that went into Q4. And we anticipate additional spare sales throughout the fiscal year.

我們還將進行備用銷售。我們已經有一些了。我們有一些進入了第四季度。我們預計整個財年的備件銷售將會增加。

Okay. But since you've capitalized a lot of these costs, I guess the cash flow from any revenue would be rather significant.

好的。但由於你已經資本化了很多這些成本，我想任何收入的現金流都會相當可觀。

Yes, that's correct. That is correct. You should expect solid cash flow as we sell A400M systems. Correct.

對，那是正確的。那是對的。當我們銷售 A400M 系統時，您應該期待穩定的現金流。正確的。

Okay. On the airlift business, how much of the portfolio is sort of booked for this year and how many may come off contract?

好的。在空運業務方面，今年有多少投資組合已被預訂，有多少可能會終止合約？

The fixed wing are booked all the way through -- a very large percentage of fixed wing are booked all the way through May of next year, so May of '14. There are the rotary wing contract -- one contract expires in November. And one contract is up for an option year in October. We have a high level of confidence that a large percentage of those assets, even the ones that come off contract, will be transferred over to the contract that still has option years remaining. At least that's our intel as we sit here today.

固定翼飛機的預訂一直持續到明年 5 月，即 14 年 5 月。還有旋翼合約——其中一份合約將於 11 月到期。一份期權年合約將於 10 月到期。我們非常有信心，這些資產中的很大一部分，甚至是那些已經脫離合約的資產，都將轉移到仍有剩餘選擇權年限的合約中。至少這是我們今天坐在這裡的情報。

How many rotary aircraft do you have?

你們有多少架旋翼飛機？

Twenty-two?

22？

Okay.

好的。

There's --

有 -

I don't know.

我不知道。

I should know. It's 19, 2 and 2, so --

我應該知道。現在是 19、2、2，所以——

Twenty-four?

24？

Twenty-four.

24。

Twenty-four. And so only --

24。所以只有——

Twenty-four in Afghanistan, approximately. Okay? We can get you the exact number.

阿富汗大約有二十四個。好的？我們可以為您提供準確的數字。

No, that's fine. But only one comes off contract in November and there's one with an option, so basically 22 (multiple speakers) --

不，沒關係。但只有一個人在 11 月解除合同，而且還有一個人有選擇權，所以基本上是 22 個（多個發言者）--

No. No. One of the contracts -- the contracts are for multiple --

不，不，其中一份合約——這些合約是針對多個——

I'm sorry; yes. I'm sorry.

對不起;是的。對不起。

Yes. The contracts are for multiple aircraft. We have it laid out in our 10-K. And we can get you that data here very easily. I just don't have it right at this minute.

是的。這些合約涉及多架飛機。我們已將其列在 10-K 中。我們可以輕鬆地在這裡為您提供這些數據。我只是現在還沒把握好。

Okay. Thank you very much David.

好的。非常感謝大衛。

Doug Carson; Bank of America.

道格·卡森；美國銀行。

Good quarter. If you could just give us some kind of broad color on the Middle East and kind of what the demand picture looks like there. I think you've done a great job navigating that area. A little color on that would be my first question.

好季度。如果您能為我們提供一些關於中東的大致情況以及那裡的需求情況。我認為你在這個領域做得很好。我的第一個問題是對此進行一點說明。

Well, let's see. I mean, the Middle East is -- in terms of the -- we've opened up an office in Abu Dhabi to capture more commercial business in the Middle East. So where my head is kind of going in the Middle East right now is to try to figure out how we take advantage of their order book and be in a position to support their growing fleets. So that's the first thing comes to mind when I think Middle East.

好吧，走著瞧。我的意思是，就中東而言，我們在阿布達比開設了辦事處，以在中東獲得更多商業業務。因此，我現在在中東的想法是嘗試弄清楚我們如何利用他們的訂單並能夠支持他們不斷增長的機隊。所以當我想到中東時，這是我首先想到的。

Secondly, of course, is the Middle East as it relates to US activity. Today we do virtually no business in support of the State Department in Iraq, although there are certain opportunities to do business in support of that customer. We are not currently participating.

其次，當然是中東，因為它與美國的活動有關。今天，我們幾乎沒有為伊拉克國務院開展任何業務，儘管有一定的機會為該客戶提供支援。我們目前不參與。

If we think of Afghanistan as Middle East, we have a significant presence there with our Airlift operations.

如果我們將阿富汗視為中東，那麼我們的空運業務就在那裡發揮重要作用。

Our mobility business, which in the past has supported US operations in moving supplies into that theater has been softened by the reduction in activity.

我們的行動業務過去曾支持美國業務將物資運送到該戰區，但由於活動減少而受到削弱。

And then we have recently won a contract supporting an effort in Saudi Arabia where our C4I business is providing some integration work, as is our mobility business providing some shelters.

最近，我們贏得了一份合同，支持沙烏地阿拉伯的一項工作，我們的 C4I 業務正在提供一些整合工作，我們的行動業務也提供一些庇護所。

So I believe that the Middle East continues to be an area of opportunity for the Company. We've invested by opening up an office, as I indicated, in Abu Dhabi. We're staffing that office with one of our senior marketing types. And we've had some good success. I might add also that that office is also handling our activities in Africa and we have had had some success, most notably in Kenya. But we are also touching other potential customers in the Africa region.

因此，我相信中東仍然是公司的機會地區。正如我所指出的，我們透過在阿布達比開設辦事處進行投資。我們正在為該辦公室配備一名高級行銷人員。我們已經取得了一些良好的成功。我還想補充一點，辦事處也在處理我們在非洲的活動，我們已經取得了一些成功，尤其是在肯亞。但我們也在接觸非洲地區的其他潛在客戶。

So for this company, that territory from a commercial vantage point has been relatively negligible in terms of results. And we have some optimism that that will be a productive region for the Company.

因此，對於這家公司來說，從商業角度來看，該領域的表現相對可以忽略不計。我們樂觀地認為，這將成為公司富有成效的地區。

Excellent. Thank you for that answer. And moving to Technology segment, looks like you expect it to stabilize next year. What's driving that improvement?

出色的。謝謝你的回答。轉向技術領域，看起來您預計明年它會穩定下來。是什麼推動了這種改進？

Yes, well, I don't think it's an improvement as much as we don't think there's going to be a lot more decay. So we think we -- you know the major piece of the -- you've got two major pieces in that sector. You have the mobility business, which historically has been AAR's strongest piece of its Technology business. And that business has suffered from reductions in activity in support of US government movement of troops and supplies. I think Mike indicated on a year-over-year basis we had a revenue decline of $47 million. But I did also indicate that that continues to be a profitable business.

是的，我不認為這是一種進步，就像我們認為不會有更多的衰退一樣。所以我們認為我們——你知道其中的主要部分——在這個領域有兩個主要部分。行動業務歷來是 AAR 技術業務中最強大的部分。該業務因支持美國政府調動軍隊和物資的活動減少而受到影響。我認為 Mike 表示我們的收入比去年同期下降了 4700 萬美元。但我也指出，這仍然是一項有利可圖的業務。

But our Telair and our commercial cargo systems business is relatively strong. It's strong. We're on some very good platforms. We continue to support virtually all Airbus manufactured aircraft and we have a position on the 747-8 aircraft. So we think the commercial cargo business is decent. Is it gangbusters? No. But it's decent.

但我們的 Telair 和商業貨運系統業務相對強勁。它很強。我們有一些非常好的平台。我們繼續支援幾乎所有空中巴士製造的飛機，並且我們在 747-8 飛機上佔有一席之地。所以我們認為商業貨運業務不錯。是不是很厲害？不，但還不錯。

And then we have, as we alluded to from the last questioner, we will start making deliveries of A400M cargo systems this year. And those are approximately $1.5 million per unit.

然後，正如我們在上一位提問者中提到的，我們將在今年開始交付 A400M 貨運系統。每單位約 150 萬美元。

Perfect. All right, that's it for me. Thank you very much.

完美的。好吧，我就這樣了。非常感謝。

(Operator Instructions) Stan Manning; Manning's Family Investment.

（操作員指示）史丹曼寧；曼寧的家族投資。

Good job, gentlemen. Just two basic questions. One, what do you envision as the growth opportunity for 2014 and beyond?

幹得好，先生們。只是兩個基本問題。第一，您認為 2014 年及以後的成長機會是什麼？

Stan, I think you'll see continued growth in our commercial activities. So I think you'll see growth in our spares business and our logistics, spares and logistics. You'll see growth in our MRO activities. And you'll see growth in our -- you should see growth in our commercial cargo systems arena. So I think you'll see some new programs. You'll see some new wins, I believe. And so you'll see, I think, continued progress in the commercial space.

史丹，我想您會看到我們的商業活動持續成長。因此，我認為您會看到我們的備件業務以及我們的物流、備件和物流的成長。您將看到我們的 MRO 活動的成長。你會看到我們的成長——你應該會看到我們的商業貨運系統領域的成長。所以我想你會看到一些新的節目。我相信你會看到一些新的勝利。我認為，所以你會看到商業領域的持續進步。

I think on the defense side, we've had some success here recently creating some of these unique aircraft solutions for customers. And we continue to kind of canvas the world to see whom else might be interested in that kind of lower cost solution. And whether we can close something and deliver within this fiscal year or not might be a question. But I do believe that we will have continued success doing that kind of activity.

我認為在國防方面，我們最近在為客戶創建一些獨特的飛機解決方案方面取得了一些成功。我們繼續在全世界範圍內進行調查，看看還有誰可能對這種低成本解決方案感興趣。我們能否在本財年內完成某些工作並交付成果可能還是一個問題。但我確實相信，我們在此類活動中將繼續取得成功。

So, yes, I think you'll see good growth out of commercial markets. Our defense markets business should hold its own, notwithstanding any other dramatic cuts to budgets. And, yes, I think that's where you'll see the action.

所以，是的，我認為你會看到商業市場的良好成長。儘管預算大幅削減，我們的國防市場業務仍應保持穩定。是的，我想這就是你會看到行動的地方。

And two -- one question that's an add-on to this -- the American merger or takeover, do you see that as a near-term opportunity in your maintenance business?

還有兩個問題——這是一個附加問題——美國的合併或收購，您認為這是您的維護業務的近期機會嗎？

Well, the maintenance business -- as we sit here today on this call, we have a capacity problem, right, because we don't have a lot more space. We have some space we can accommodate some additional demand, but we couldn't accommodate a dramatic requirement as we sit here today. Now, we're thinking about how we deal with that and we're trying to create -- we're trying to open up some space, so to speak. But at this moment as we sit here today, it would be hard for us to digest a meaningful slug of airframe business.

嗯，維護業務——當我們今天坐在這裡參加這次電話會議時，我們遇到了容量問題，對吧，因為我們沒有更多的空間。我們有一些空間可以滿足一些額外的需求，但我們今天坐在這裡無法滿足巨大的需求。現在，我們正在考慮如何處理這個問題，我們正在努力創造——可以說，我們正在努力開闢一些空間。但此時此刻，當我們坐在這裡時，我們很難消化有意義的機身業務。

Now, we do think that we have a better shot at improving some of the component activity. American has not been a significant customer for the Company over the years. US Air, we've had decent relationships with US Air. We do landing gear repairs. We do component repairs. We sell them some parts. So as the two businesses merge and as US Air leadership moves into a more prominent role in the merged entity, we think that there will be some opportunities for the Company. I can't comment -- you know, when you're talking about short term, we're not baking in any short-term pickups, meaningful pickups. But I think longer term I think it bodes well for the Company.

現在，我們確實認為我們有更好的機會改善某些組件的活動。多年來，美國航空一直不是該公司的重要客戶。全美航空，我們與全美航空有著良好的關係。我們維修起落架。我們進行零件維修。我們賣給他們一些零件。因此，隨著兩家公司合併，以及全美航空領導層在合併後的實體中發揮更重要的作用，我們認為該公司將會有一些機會。我無法發表評論——你知道，當你談論短期時，我們不會烘焙任何短期的、有意義的回升。但我認為從長遠來看，這對公司來說是個好兆頭。

Okay. My last question is one I ask all the time. You have a gigantic amount of free cash flow. So can you give us your vision or priorities, whether it would be buyback, a new acquisition, pay down of debt? Could you kind of flesh that out for us, please?

好的。我的最後一個問題是我一直在問的一個問題。您擁有大量的自由現金流。那麼您能否告訴我們您的願景或優先事項，是否為回購、新收購、償還債務？請您為我們具體說明一下好嗎？

Yes. I think that there are a few different parameters that go into that decision. So when you look at last year, we generated a significant amount of cash. We used some of that to pay down our debt. So we feel very pleased with the improvement in our debt-to-equity position. We used some of that to buy in stock. So if you see the average purchase price of our stock, a million shares, at $14.90 a share. And then we took some of the cash and we invested it back in the business.

是的。我認為做出這個決定需要考慮幾個不同的參數。因此，當你看看去年時，我們產生了大量現金。我們用其中的一部分來償還債務。因此，我們對債務股本狀況的改善感到非常高興。我們用其中的一些來購買庫存。因此，如果您看到我們股票的平均購買價格（100 萬股）為每股 14.90 美元。然後我們拿了一些現金並將其投資回企業。

And I think as we look forward I think it will be a combination. We'll apply the capital. We still have -- we have about $35 million remaining on our authorization from the Board to purchase some shares. I think that's probably -- that's an option. I believe continuing to pay down debt is important to us. I think we'll probably at some point in time take a look, at the Board level, take a look at the dividend and see how we feel about that. I think obviously returning capital and giving our shareholders a good return on their capital is important to us.

我認為，當我們展望未來時，我認為這將是一個結合。我們將運用資金。我們還有大約 3500 萬美元的資金需要董事會授權購買一些股票。我認為這可能是個選擇。我相信繼續償還債務對我們很重要。我認為我們可能會在某個時間點在董事會層面上看看股息，看看我們對此有何感受。我認為顯然返還資本並為股東提供良好的資本回報對我們來說很重要。

So we will continue to explore all these things. Acquisitions are also in the mix as well. So there are a few different things that we're looking at that fit in strategically very well with what we're doing. And we may be in a position to pull the trigger there.

所以我們將繼續探索所有這些事情。收購也在其中。因此，我們正在考慮一些不同的事情，這些事情在策略上與我們正在做的事情非常契合。我們可能能夠在那裡扣動扳機。

As we sit here today in the month of July, we had a very good cash generation, good month in June. Our net debt position has improved from year end at $91 million improvement in net debt. We knocked off another $40 million of debt improvement. So when you look at June of 2012 versus June of 2013, our net debt is down $130 million.

當我們今天坐在這裡的七月時，我們的現金產生非常好，六月的情況很好。我們的淨債務狀況較年底有所改善，淨債務改善了 9,100 萬美元。我們又完成了 4000 萬美元的債務改善。因此，在對比 2012 年 6 月和 2013 年 6 月，我們的淨債務減少了 1.3 億美元。

So we will continue to focus on all the different places we can use the capital.

因此，我們將繼續關注我們可以利用資本的所有不同領域。

Okay. As you're sitting here today looking at what's available on the acquisition front, because your free cash flow seems to be better than many and you're comparable or competitive, do you see any near-term acquisitions as good possibilities?

好的。當您今天坐在這裡查看收購方面可用的內容時，因為您的自由現金流似乎比許多人都好，並且您具有可比性或競爭力，所以您認為任何近期收購都是好的可能性嗎？

Stan, I'd rather not comment on that, if you don't mind. So I believe we will continue to look for good deals as they present themselves. I think I indicated some of the objectives that we have for the year. So if opportunities present themselves that match up with things that we're trying to do, then we may pull the trigger.

史丹，如果你不介意的話，我不想對此發表評論。因此，我相信我們將繼續尋找優惠的優惠。我想我指出了我們今年的一些目標。因此，如果機會出現與我們正在嘗試做的事情相匹配，那麼我們可能會扣動扳機。

Okay. Very good job. Thank you for your commentary.

好的。幹得好。謝謝您的評論。

Larry Solow; CJS Securities.

拉里·索洛；希捷證券。

Just a couple of follow-ups. The interest rate assumption, or the interest expense assumed to be basically flat from this quarter. But does that assume, then, that you don't pay down any debt? Just sort of curious how that works out.

只是幾個後續行動。利率假設或利息支出假設從本季開始基本持平。但這是否假設您沒有償還任何債務？只是有點好奇這是如何實現的。

Well, we've got, Larry, some converts that mature, another slug of converts that mature I think in February, late February, early March. So that comes out later on in the year.

好吧，拉里，我們有一些成熟的皈依者，另一批我認為在二月、二月末、三月初成熟的皈依者。所以這會在今年晚些時候出現。

Okay. All right, so that would --

好的。好吧，這樣的話——

Yes.

是的。

And the --

還有——

No, but Larry, I think you're looking at it correctly.

不，但是拉里，我認為你的看法是正確的。

Yes, I mean -- okay, that's fine. David, just in terms of the Airlift business, sort of the big concern is what happens after Afghanistan. And I believe you have a lot of options, but do you see Afghanistan really -- not from your sake, but on a macro level, do you see Afghanistan's need or demand for airlift dropping significantly in the next year? Or do you think this can go beyond 2014?

是的，我的意思是——好吧，沒關係。大衛，就空運業務而言，最令人擔憂的是阿富汗之後會發生什麼事。我相信你有很多選擇，但你真的看到阿富汗嗎？或者你認為這可以超越2014年嗎？

I'd be surprised if it doesn't go beyond 2014.

如果不超過 2014 年，我會感到驚訝。

Right. Okay. So there's a good chance that you may -- not that you're not looking for opportunities, but that you may still basically there in '15? Right?

正確的。好的。所以你很有可能——不是說你不尋找機會，而是說你可能基本上在 15 年仍然在那裡？正確的？

Yes. Yes.

是的。是的。

Okay. Last, just a housekeeping question -- the charge, the $29.8 million, did that all go into gross margin -- is that all cost of goods or did a piece of that go somewhere else?

好的。最後，只是一個內務管理問題——2980萬美元的費用，是否全部計入毛利率——是所有商品成本還是其中一部分進入了其他地方？

It's interesting, Larry. It does all impact gross profit. There was a portion of it that we were required to reduce revenues. And then the rest of it went to cost of sales. But the important part is that it all impacts gross profit.

這很有趣，拉里。它確實會影響毛利。其中一部分是我們被要求減少收入的。然後其餘部分用於銷售成本。但重要的是，這一切都會影響毛利。

So I guess the simple math you can't just add that back to gross margin, because then I get a little higher margin than what you guys had. Is that right? I can't do that?

所以我想簡單的數學計算你不能把它加回毛利率，因為這樣我的利潤率就會比你們的高一點。是對的嗎？我做不到嗎？

Right. Because there's a -- when you adjust for the impact that the sales would have been a little higher. So I think that's why you're probably off a little bit.

正確的。因為當你調整影響時，銷售量會更高一些。所以我想這就是為什麼你可能有點偏離的原因。

We can go over that offline. That's fine. Thanks.

我們可以離線查看。沒關係。謝謝。

Okay.

好的。

And I'm not showing any further questions at this time. I'd like to turn the conference back over to our host for closing comments.

目前我不會提出任何進一步的問題。我想將會議轉回給我們的東道主以徵求結束意見。

Well, thank you, everybody, for participating today. Once again, we're very proud of the year that we just ended. And we're excited about the year that we're about to enter. Thank you so much.

好的，謝謝大家今天的參與。我們再次為剛結束的這一年感到非常自豪。我們對即將進入的一年感到興奮。太感謝了。

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接並度過美好的一天。