AAR Corp (AIR) 2025 Q1 法說會逐字稿

Good afternoon, everyone, and welcome to AAR's fiscal 2025 first quarter earnings call. We're joined today by John Holmes, Chairman, President and Chief Executive Officer, and Sean Gillen, Chief Financial Officer.

大家下午好，歡迎參加 AAR 2025 財年第一季財報電話會議。今天，董事長、總裁兼首席執行官約翰·霍姆斯 (John Holmes) 和首席財務官肖恩·吉倫 (Sean Gillen) 也加入了我們的行列。

Before we begin, I'd like to remind you that the comments made during the call may include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these statements are no guarantee of future performance. These risks and uncertainties are discussed in the company's earnings release and the risk factors section of the company's annual report on Form 10-K for the fiscal year ended May 31, 2024.

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。這些前瞻性陳述涉及風險和不確定性，可能導致實際結果與前瞻性陳述有重大差異。因此，這些陳述並不能保證未來的表現。這些風險和不確定性在公司的收益發布以及公司截至 2024 年 5 月 31 日的財年 10-K 表格年度報告的風險因素部分中進行了討論。

In providing the forward-looking statements, the Company assumes no obligation to provide updates to reflect future circumstances or anticipated or unanticipated events. Certain non-GAAP financial information will be discussed in the call today. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in the company's earnings release. A replay of the conference call will be available for on-demand listening shortly after the completion of the call on AAR's website.

在提供前瞻性陳述時，本公司不承擔提供更新以反映未來情況或預期或意外事件的義務。今天的電話會議將討論某些非公認會計準則財務資訊。該公司的收益報告中列出了這些非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節表。電話會議結束後不久，AAR 網站上將提供電話會議重播供點播收聽。

At this time, I would like to turn the call over to AAR's, Chairman, President and CEO, John Holmes.

現在，我想將電話轉給 AAR 董事長、總裁兼執行長 John Holmes。

Great. Thank you, and thank you to everyone for joining us this afternoon to discuss our most recent quarter's results. We're very proud of the performance we delivered during our first quarter of fiscal 2025, which was a very solid start to the year, and I'm grateful to our team for continuing to deliver.

偉大的。謝謝大家，也謝謝大家今天下午加入我們討論我們最近一個季度的業績。我們對 2025 財年第一季的業績感到非常自豪，這是今年一個非常堅實的開端，我感謝我們的團隊繼續交付成果。

AAR advanced strategic initiatives and continued to execute well across the company. We are benefiting from structural tailwinds, elevated levels of air travel, and an aging fleet which drives demand for our aftermarket services. Our company is more focused than ever within our three main operating segments; Parts Supply, Repair and Engineering, and Integrated Solutions.

AAR 推進了策略舉措，並繼續在整個公司內良好執行。我們受益於結構性順風、航空旅行水準的提高以及機隊老化，這推動了對我們售後服務的需求。我們公司比以往任何時候都更專注於我們的三個主要營運部門；零件供應、維修和工程以及整合解決方案。

We are making investments in each of these three segments to drive growth, improve our efficiency, and deliver higher margins. You saw that this quarter, and we expect the benefit from these investments to continue throughout our fiscal 2025. With that, I will turn to our first quarter results.

我們正在這三個領域進行投資，以推動成長、提高效率並提供更高的利潤。您在本季就看到了這一點，我們預計這些投資將在整個 2025 財年繼續帶來效益。接下來，我將談談我們第一季的業績。

We delivered quarterly sales of $662 million, up 20% year over year, driven by growth in each of our segments. Additionally, we had growth in both our commercial and government businesses with each growing at 20%. Our Distribution and Hangar activities had particularly strong performance and our recent acquisitions of Triumph Product Support were also meaningful contributors this quarter.

在各個細分市場成長的推動下，我們的季度銷售額達到 6.62 億美元，較去年同期成長 20%。此外，我們的商業和政府業務均實現了 20% 的成長。我們的分銷和機庫活動表現尤其強勁，我們最近收購的 Triumph 產品支援也為本季做出了有意義的貢獻。

Regarding profitability, I'm pleased that once again, we demonstrated significant operating margin expansion. Our adjusted operating margins increased by 180 basis points year over year from 7.3% to 9.1%. This was the result of the continued organic margin expansion as well as contribution from Trax and Product Support acquisitions. I'm now going to go into these results in a little more detail for each of our three main segments.

關於獲利能力，我很高興我們再次展示了營業利潤率的顯著擴張。調整後的營業利潤率年增 180 個基點，從 7.3% 增至 9.1%。這是持續有機利潤擴張以及 Trax 和產品支持收購貢獻的結果。我現在將針對我們的三個主要部分更詳細地討論這些結果。

Parts Supply is our largest and most profitable segment and where we have very significant opportunity for organic growth. This segment contains two activities. New parts distribution and used serviceable material or USM. Distribution represents nearly 60% of Parts Supply and 22% of consolidated sales. USM represents approximately 40% of parts supply and 15% of consolidated sales. In new parts distribution, sales grew 26% organically, driven by continued market share gains. We benefited from both continued commercial demand strength and recovery in our government volumes.

零件供應是我們最大、利潤最高的部門，我們在該部門擁有非常重要的有機成長機會。該部分包含兩項活動。新零件分配和使用過的可用材料或 USM。分銷佔零件供應量的近 60% 和綜合銷售額的 22%。USM 約佔零件供應量的 40% 和綜合銷售額的 15%。在新零件分銷方面，在市場份額持續增長的推動下，銷售額有機增長了 26%。我們受益於持續的商業需求強勁和政府數量的復甦。

We're the largest independent distributor of OEM parts and our independent status is a key strategic advantage, which eliminates conflicts and allows our OEM partners to serve all aircraft types. This is a key driver behind our consistent market share gains and we believe we have a long runway ahead of us because we have a strong pipeline of opportunities.

我們是最大的 OEM 零件獨立經銷商，我們的獨立地位是一項關鍵的戰略優勢，它消除了衝突，使我們的 OEM 合作夥伴能夠為所有飛機類型提供服務。這是我們市場份額持續成長的關鍵驅動力，我們相信我們還有很長的路要走，因為我們有大量的機會。

For the USM activity within part supply. We saw a decline in year-over-year sales driven entirely by the lack of whole assets, predominantly engine available in the market. The decrease in whole assets sales is a result of the current dynamics in the aviation aftermarket, the continued delay of new aircraft deliveries, ongoing challenges with new engine platforms resulted in a greater use of the existing fleet, which has resulted in lower retirements. Overall, this is good for AAR, and USM specifically, it means that there's less supply available. We do anticipate more aircraft retirements over time, which will increase the supply of USM to service that demand.

用於零件供應中的 USM 活動。我們發現銷售額年減完全是由於缺乏整體資產（主要是市場上可用的引擎）造成的。整體資產銷售的下降是由於當前航空售後市場的動態、新飛機交付的持續延遲、新發動機平台的持續挑戰導致現有機隊的更多使用，從而導致退役率下降。總體而言，這對 AAR 特別是 USM 有利，這意味著可用供應量減少。我們確實預計隨著時間的推移會有更多飛機退役，這將增加 USM 的供應來滿足這一需求。

Turning to repair and engineering. Sales growth was 58% in the quarter. Excluding the Product Support acquisitions, sales growth was 6% as we continue to see strong underlying demand for our MRO services. Even though our hangars are largely at capacity, we continue to grow inside of our existing footprint with both increased efficiency and improved throughput. That said, our hangar capacity expansions in Miami and Oklahoma City remain on track for operation beginning in the second half of calendar 2025. As a reminder, these expansions will add approximately $60 million of annual sales.

轉向維修和工程。本季銷售額成長 58%。不包括產品支援收購，銷售額成長了 6%，因為我們繼續看到對 MRO 服務的強勁潛在需求。儘管我們的機庫基本上已滿負荷，但我們仍在現有的佔地面積內繼續發展，提高了效率和吞吐量。儘管如此，我們在邁阿密和俄克拉荷馬城的機庫容量擴張仍按計劃從 2025 年下半年開始投入營運。提醒一下，這些擴張將增加約 6,000 萬美元的年銷售額。

Regarding the Triumph Product Support acquisition, the business has exceeded our initial expectations in the first two quarters. So we are in the early stages of unlocking significant additional value. In terms of cost synergy, we are on track to achieve the previously announced target of $10 million and are confident we will exceed this number once the complete consolidation of our -- once we complete the consolidation of our existing Long Island facility into the facilities in Grand Prairie, Texas and Wellington, Kansas. Additionally, we continue to make progress on in-sourcing repair work in support of our commercial programs and USM activities.

關於凱旋產品支援收購，前兩季的業務超出了我們最初的預期。因此，我們正處於釋放顯著附加價值的早期階段。就成本協同效應而言，我們預計將實現先前宣布的 1000 萬美元目標，並且有信心一旦我們完成將現有長島工廠整合到德克薩斯州大草原城和堪薩斯州惠靈頓。此外，我們繼續在內包維修工作方面取得進展，以支援我們的商業計劃和 USM 活動。

Turning to integrated solutions. In the quarter, we drove growth across both our commercial and government offerings, which resulted in total sales growth of 8% for the segment. Trax had a particularly strong quarter with some significant new business wins and customer implementations. Customer interest in Trax offering remained strong, and we are excited about the potential to continue to win market share with new customers and expand our services with existing customers.

轉向整合解決方案。本季度，我們推動了商業和政府產品的成長，導致該細分市場的總銷售額成長了 8%。Trax 的季度表現尤其強勁，贏得了一些重大的新業務並實現了客戶實施。客戶對 Trax 產品的興趣依然濃厚，我們對繼續贏得新客戶的市場份額並擴大我們與現有客戶的服務的潛力感到興奮。

Our government program activities in integrated solutions had a strong quarter as well. Subsequent to the quarter, we had two significant business wins in government programs. We were awarded a five-year firm fixed price IDIQ contract with the Navy to perform airframe maintenance on their P8 fleet. This award is a continuation of existing work. We also won a new contract to support the engine maintenance for the Navy on the same P8 aircraft fleet. These wins demonstrate the significant value proposition that AAR brings to its government customers.

我們在整合解決方案方面的政府計劃活動在本季也表現強勁。本季結束後，我們在政府項目中取得了兩項重大業務勝利。我們與海軍簽訂了一份為期五年的固定價格 IDIQ 合同，為其 P8 機隊執行機身維護。該獎項是現有工作的延續。我們還贏得了一份新合同，為海軍同一 P8 機隊的發動機維護提供支援。這些勝利證明了 AAR 為其政府客戶帶來的重要價值主張。

Overall, I'm incredibly proud of the quarter that we just delivered. And with that I'll turn it over to Sean.

總的來說，我對我們剛剛交付的季度感到非常自豪。然後我會把它交給肖恩。

Thanks, John. The total sales in the quarter grew 20% to $662 million. Excluding the impact from the recently acquired product support business, organic sales growth for the quarter was 6%. Commercial sales increased 20% with growth in all three of our core segments. Our commercial distribution sales were particular standouts as we continued to drive sales growth on existing product lines and expanded newlywon product lines as well.

謝謝，約翰。該季度總銷售額成長 20%，達到 6.62 億美元。剔除最近收購的產品支援業務的影響，該季度的有機銷售額增長為 6%。隨著我們所有三個核心細分市場的成長，商業銷售額成長了 20%。我們的商業分銷銷售尤其出色，因為我們繼續推動現有產品線的銷售成長並擴大了新贏得的產品線。

Government sales also increased 20%, an improvement from the 15% growth we experienced in the fourth quarter. The sales increase was driven by an ongoing recovery across our government program activities and increased order volume for our new parts and distribution activities. Adjusted operating profit margin improved 180 basis points from 7.3% to 9.1%. Adjusted EBITDA margin increased 180 basis points from 9.5% to 11.3%.

政府銷售也成長了 20%，比第四季 15% 的成長有所改善。銷售額成長的推動因素是我們的政府計劃活動的持續復甦以及新零件和分銷活動的訂單量增加。調整後營業利潤率提高了 180 個基點，從 7.3% 提高至 9.1%。調整後 EBITDA 利潤率增加 180 個基點，從 9.5% 增加到 11.3%。

We have a clear road map for continued margin improvements over the medium term as our mix shifts towards our higher margin segments and we realized synergies in the recently acquired product support business. We continue to roll out our airframe maintenance efficiency improvement initiatives and expect further margin improvement as capacity expansion projects come online. Net interest expense for the quarter was $18.3 million, reflecting the financing of the product support acquisition and we expect Q2 interest expense to be approximately the same as Q1.

隨著我們的組合轉向利潤率較高的細分市場，並且我們在最近收購的產品支援業務中實現了協同效應，我們制定了中期持續提高利潤率的明確路線圖。我們繼續推出機身維護效率改進計劃，並預計隨著產能擴張項目的上線，利潤率將進一步提高。本季的淨利息支出為 1,830 萬美元，反映了產品支持收購的融資，我們預計第二季的利息支出將與第一季大致相同。

Average diluted share count in the quarter was 35.6 million shares. For FY25, we continue to expect our effective tax rate to be approximately 28%. Adjusted diluted EPS increased from $0.78 to $0.85, reflecting the benefit of our growth and margin expansion. The product support acquisition was accretive to earnings for the quarter, which we expect to continue through FY25. With that, I'll turn to the detailed results by segment.

本季平均攤薄股數為 3,560 萬股。對於 25 財年，我們繼續預期有效稅率約為 28%。調整後攤薄每股收益從 0.78 美元增加至 0.85 美元，反映了我們的成長和利潤率擴張的好處。產品支援收購增加了本季的收益，我們預計這種情況將持續到 2025 財年。接下來，我將按部分詳細介紹結果。

Parts supply sales grew 5% to $250 million, driven by 26% growth in distribution and a 22% decline in USM. We once again drove double digit growth in distribution as we continue to gain market share. Growth in the quarter were positively impacted by the expansion of both existing product lines and the ramp-up of new business wins as well as greater purchases by both the US and foreign governments. Our USM activity was down due to lack of availability of whole assets.

受分銷成長 26% 和 USM 下降 22% 的推動，零件供應銷售額成長 5%，達到 2.5 億美元。隨著我們繼續獲得市場份額，我們再次推動分銷業務實現兩位數成長。本季的成長受到現有產品線擴張、新業務成長以及美國和外國政府增加採購的正面影響。由於缺乏可用的整體資產，我們的 USM 活動有所下降。

Product supply adjusted operating margins increased by 110 basis points to 12.1% in the quarter, driven by distribution which benefited from scale and mix. The improvement of distribution sales to government customers also contributed to the increase in margins. Repair and engineering sales increased 58% to $218 million. On an organic basis, sales increased 6%. Demand remained strong for our heavy maintenance and component repair capabilities. And we look to continue to drive growth in these activities.

在受益於規模和組合的分銷的推動下，本季產品供應調整後的營業利潤率增長了 110 個基點，達到 12.1%。對政府客戶的分銷銷售的改善也促進了利潤率的成長。維修和工程銷售額成長 58%，達到 2.18 億美元。在有機基礎上，銷售額成長了 6%。對我們的重型維護和零件維修能力的需求仍然強勁。我們希望繼續推動這些活動的成長。

Repair and engineering adjusted operating margins increased by 460 basis points to 11.2% in the quarter, driven by the inorganic impact of product support and continued efficiency gains in the hangars. Going forward, we expect to drive further margin expansion in this segment from the realization of product support synergies, rollout of our paperless hanger initiatives, and the capacity expansions once they come online in FY26.

在產品支援的無機影響和機庫持續效率提高的推動下，本季維修和工程調整後營業利潤率成長了 460 個基點，達到 11.2%。展望未來，我們預計透過實現產品支持協同效應、推出無紙化衣架計劃以及在 2026 財年上線後的產能擴張，進一步推動該細分市場的利潤率擴張。

Integrated Solutions sales increased 8% to $169 million, driven by growth in commercial power by the hour activities, certain government programs, and from Trax. Integrated Solutions adjusted operating margin decreased by 40 basis points to 6.2% in the quarter, based on the mix within government program. In Expeditionary Services, our government customer has decided to revert to the current generation pallets and as a result, terminated our contract to provide next-generation pallets.

受計時活動、某些政府計劃和 Trax 商業力量增長的推動，整合解決方案銷售額增長 8%，達到 1.69 億美元。根據政府計畫內的組合，Integrated Solutions 本季調整後營業利潤率下降 40 個基點至 6.2%。在遠徵服務中，我們的政府客戶決定恢復使用當前一代托盤，因此終止了我們提供下一代托盤的合約。

We are the incumbent on current generation pallets and will continue to support the government's demand for these products as we await the potential new RFP for the next generation pallet. We do not expect any material change in the outlook for expeditionary services due to the government's decision. However, related to the termination in the quarter, we recognized revenue of $9.5 million and a net loss of $3.2 million, which are excluded from our adjusted results.

我們是當前世代托盤的負責人，在等待下一代托盤的潛在新 RFP 期間，我們將繼續支持政府對這些產品的需求。我們預計遠徵服務的前景不會因政府的決定而有任何重大變化。然而，與本季的終止相關，我們確認了 950 萬美元的收入和 320 萬美元的淨虧損，這不包括在我們的調整後業績中。

Turning to consolidated cash, cash flow used in operating activities was $19 million in the quarter as we made investments in the business, particularly in inventory to support the growth in distribution. Despite this cash use, we maintained net leverage of 3.3 times net debt to adjusted pro forma EBITDA. For the balance of the fiscal year, we expect to reduce net leverage through both growth and EBITDA as well as reduction in net debt. Our balance sheet and capital structure affords us sufficient flexibility to manage our business and make decisions that maximize shareholder value.

談到合併現金，本季經營活動使用的現金流量為 1,900 萬美元，因為我們對業務進行了投資，特別是在庫存方面進行投資，以支持分銷的成長。儘管使用了這些現金，我們仍將淨槓桿率維持在調整後預期 EBITDA 的 3.3 倍的淨債務水準。對於本財年的剩餘時間，我們預計將透過成長和 EBITDA 以及減少淨債務來降低淨槓桿率。我們的資產負債表和資本結構為我們提供了足夠的靈活性來管理我們的業務並做出最大化股東價值的決策。

With that, I will turn the call back over to John.

這樣，我會將電話轉回給約翰。

Great. Thank you, Sean. I'm very pleased with the results that we delivered in Q1 and a strong start to our fiscal year. Demand for our services remains exceptionally strong and the current dynamics in the aviation supply chain overall are in our favor.

偉大的。謝謝你，肖恩。我對我們在第一季取得的成果以及本財年的良好開局感到非常滿意。對我們服務的需求仍然異常強勁，目前航空供應鏈的整體動態對我們有利。

Looking to Q2 of fiscal 2025, specifically, we expect sales growth of 18% to 22% and adjusted operating margin similar to Q1, which was 9.1%. We continue to make tremendous progress towards executing our long-term objectives. We continue to gain market share in distribution and are on track with capacity expansions and repair and engineering are growing the Trax software offering and driving higher margins through investments in efficiency and differentiated capabilities. We are exceptionally well positioned to capitalize on the strength that we are seeing in our markets, and I'm very excited about our future.

具體而言，展望 2025 財年第二季度，我們預期銷售額將成長 18% 至 22%，調整後營業利潤率與第一季類似，為 9.1%。我們在實現長期目標方面繼續取得巨大進展。我們繼續獲得分銷市場份額，並在產能擴張方面走上正軌，維修和工程部門正在擴大 Trax 軟體產品，並透過對效率和差異化能力的投資來推動更高的利潤。我們處於非常有利的位置，可以利用我們在市場上看到的優勢，我對我們的未來感到非常興奮。

With that, I'll turn it over to the operator for questions.

這樣，我會將其轉交給接線員詢問。

(Operator Instructions)

（操作員說明）

Scott Micrus, Melius Research.

斯科特·米克魯斯，Melius 研究公司。

Hi, John, Sean, good evening. John, I wanted to ask on the Triumph Product Support asset. So it came as 6,000 proprietary DER repairs. So I'm just wondering how should we think about the growth in the number of DER repairs that you can do to add to that? So should I be thinking an annual growth rate on that or just a simple number of repairs you want to add per annum?

嗨，約翰，肖恩，晚上好。約翰，我想詢問有關 Triumph 產品支援資產的問題。因此，這是 6,000 次專有 DER 維修。所以我只是想知道我們應該如何考慮您可以增加的 DER 維修數量的增長？那我應該考慮每年的成長率還是只是每年想要增加的簡單維修次數呢？

It's a great question. And an important asset that came with the acquisition. What I would say there is rather than trying to quantify the types of repairs, I would say that the majority of the 6,000 DER repairs the Triumph has are focused on structures. And we are focused on broadening that DER repair capability to the accessories and components that are repaired in the other areas of Triumph of TBS. And so again, rather than trying to quantify every growth rate or number of repairs, I would say that from a product type, we would look to capture the opportunity beyond what they've done in the structures world.

這是一個很好的問題。這是收購帶來的一項重要資產。我想說的是，與其試圖量化維修類型，我想說的是，Triumph 的 6,000 次 DER 維修中的大部分都集中在結構上。我們致力於將 DER 維修能力擴展到 TBS Triumph 其他區域維修的配件和組件。因此，我想說的是，從產品類型來看，我們不會試圖量化每個成長率或維修數量，而是希望抓住他們在結構領域所做的事情之外的機會。

Okay, got it. And then I also wanted to stick with repair and engineering and just thinking about the MRO hangar. So you have the capacity expansions in Oklahoma City and Miami that will be ready for the fall of 2025. But I'm just wondering, do you have the pipeline of workers to fill those hangars on day one? Or is it going to take time to train, hire, and ramp up those new employees to generate sales and profits?

好的，明白了。然後我還想堅持維修和工程，只考慮 MRO 機庫。因此，俄克拉荷馬城和邁阿密的產能擴張將為 2025 年秋季做好準備。但我只是想知道，第一天你們有足夠的工人來填滿這些機庫嗎？或者是否需要時間來培訓、僱用和培養新員工才能產生銷售和利潤？

Yeah, great question. And we're very excited about that capacity coming online. We're also excited that it's sold, and we went into markets where we knew we would have a long-term baseload customer and we knew to your point that we would be able to come to higher and higher up. So both Miami and Oklahoma City are favorable labor markets for us. We've had a long-time presence in each place. We've got relationships with local providers and schools, et cetera.

是的，很好的問題。我們對這種能力的上線感到非常興奮。我們也很高興它被售出，我們進入了我們知道我們將擁有長期基​​本負載客戶的市場，我們知道我們將能夠達到越來越高的水平。因此，邁阿密和俄克拉荷馬城都是對我們有利的勞動市場。我們在每個地方都有長期存在。我們與當地的提供者和學校等建立了合作關係。

And so we feel really good about our ability to recruit talent in both locations. There will be a ramp up in each facility. There always is, there's a bit of an operational curve though. But we feel very confident in a relatively short ramp up and our ability to hire the labor to support that business.

因此，我們對我們在這兩個地點招募人才的能力感到非常滿意。每個設施都會有一個斜坡。總是存在的，不過有一點操作曲線。但我們對相對較短的成長以及我們僱用勞動力來支持該業務的能力非常有信心。

All right, thanks for taking the questions.

好的，感謝您提出問題。

Thank you.

謝謝。

Michael Ciarmoli, Truist Securities.

邁克爾·恰莫利 (Michael Ciarmoli)，Truist 證券公司。

Good evening, guys. Thanks for taking the questions, nice results.

晚上好，夥計們。感謝您提出問題，結果很好。

Hey, John, just on the USM. and kind of the challenges there, I mean, how are you guys thinking about or how are you potentially forecasting whole asset sales for the year? I have got to imagine that's a challenge.

嘿，約翰，就在 USM。我的意思是，你們如何看待或如何預測今年的整體資產銷售？我必須想像這是一個挑戰。

And does that market? I mean, just given what's going on with the Boeing strike, I mean, obviously hard to tell long it lasts, but presumably airlines aren't getting planes they need it. Does that market potentially get even tighter for you?

那有市場嗎？我的意思是，考慮到波音公司罷工的情況，我的意思是，顯然很難判斷罷工會持續多久，但大概航空公司沒有得到他們需要的飛機。對您來說，這個市場可能會變得更加緊張嗎？

Yeah. So a great question. First of all, I would say that despite the decline that we saw in the USM business, we are really happy that the rest of the company performed really, really well. And we were able to deliver 20% growth in the quarter. And that's one of the reasons we called out, USM have 15% of our business. And to your point, yes, anything that puts more pressure on the existing fleet like the Boeing strike, it's going to extend the tightness in the USM market, but more importantly, it's going to extend the robust demand that we see for the other 80%- plus of the company.

是的。這是一個很好的問題。首先，我想說，儘管我們看到 USM 業務出現下滑，但我們真的很高興公司其他部門的表現非常非常好。我們在本季度實現了 20% 的成長。這就是我們呼籲 USM 佔據我們 15% 業務的原因之一。就你的觀點而言，是的，任何給現有機隊帶來更大壓力的事情，例如波音罷工，都將擴大USM 市場的緊張程度，但更重要的是，這將擴大我們對其他80 架飛機的強勁需求公司%-以上。

So we -- it is a difficult thing to forecast and and we do expect that at some point, as these aircraft are retired and disassembled, it will result in more asset availability and that will occur. And while there is still strong demand for these assets and we're in the right position to capture that. But right now, the overall tailwinds and dynamics that you described or that we're seeing in the market are benefiting the overall company as a whole.

所以我們——這是一件很難預測的事情，我們確實預計在某個時候，隨著這些飛機的退役和拆卸，這將導致更多的資產可用性，而這種情況將會發生。儘管對這些資產的需求仍然強勁，但我們處於抓住這一需求的正確位置。但目前，您所描述的或我們在市場上看到的整體順風和動態正在使整個公司受益。

Got it. Is there any way to parse out maybe the piece parts or component sales of USM versus the headwind that that kind of or maybe you had an underlying growth that was masked by the whole asset sales?

知道了。有沒有什麼方法可以分析USM的零件銷售與那種逆風，或者也許你有被整個資產銷售掩蓋的潛在成長？

Yeah, what I would say is that the fourth quarter for individual piece parts sales was the highest quarter we've ever had in individual parts sales and USM. The quarter we just ended was the second highest we've ever seen. So the individual parts sales there are very strong, and we are able to locate that material. It's the whole assets right now that are constraining. The other thing I would add there that market very situational right.

是的，我想說的是，第四季度的單一零件銷售是我們有史以來單一零件銷售和 USM 最高的季度。我們剛結束的季度是我們所見過的第二高的季度。因此，那裡的單一零件銷售非常強勁，我們能夠找到該材料。現在是整個資產受到限制。我要補充的另一件事是，市場狀況非常正確。

I mean, you can see like what we saw a couple of years ago with American Airlines deciding to exit a certain fleet, you can see things break loose. And our job is to make sure that we are in the right place at the right time to be able to move quickly and capture assets when they become available, even if there's not an overall change in the market, and that's what we're focused on doing.

我的意思是，你可以看到就像我們幾年前看到的那樣，美國航空公司決定退出某個機隊，你可以看到事情發生了變化。我們的工作是確保我們在正確的時間處於正確的地點，以便能夠快速行動並在資產可用時捕獲資產，即使市場沒有整體變化，這就是我們的重點關於做。

Got it. Got it. And just as we're talking here, I mean, what's the environment like are there just very limited assets or are you seeing maybe, you know, airline operators actually looking to buy equipment to make an ROI on it just because they need to service their planes? I mean, are you seeing a high level of --

知道了。知道了。正如我們在這裡談論的那樣，我的意思是，環境是什麼樣的，資產非常有限，還是您看到航空公司運營商實際上希望購買設備以獲取投資回報率，只是因為他們需要提供服務他們的飛機？我的意思是，你看到的是高水準的--

Yes. No, it's predominantly the latter. You are seeing airlines, they just need the lift. And so as assets come available from the airlines themselves or lessors are going right after those assets, because lease rates are extremely favorable right now because there's tremendous demand because the airlines just the belief. (multiple speakers) But the other point to mention there is, as those engines are in operation, you're burning off a lot of green time at once which means that once these assets once these do go in for maintenance, they're going to require a lot of parts. And that, again has a favorable dynamic demand environment for us.

是的。不，主要是後者。你看到的是航空公司，他們只需要升力。因此，當航空公司本身或出租人提供資產時，他們會立即購買這些資產，因為現在的租賃率非常優惠，因為航空公司有巨大的需求，因為他們有這樣的信念。（多個發言者）但要提到的另一點是，隨著這些引擎的運行，您會立即消耗大量的綠色時間，這意味著一旦這些資產進行維護，它們就會消失需要很多零件。這再次為我們帶來了有利的動態需求環境。

Got it. Last one, Sean, just on the the adjustments in the quarter, any detail on the investigation costs that were $0.14 and the contract termination costs of $0.09, any color you can provide there?

知道了。最後一個，肖恩，關於本季度的調整，關於 0.14 美元的調查費用和 0.09 美元的合約終止費用的任何細節，您可以在那裡提供任何顏色嗎？

Nothing further on the investigation. It has been the same investigation line item for the past number of quarters. And then the kind of contract termination in the expeditionary services, pallet contract that I talked about in the opening remarks, those are the items.

沒有進一步的調查。過去幾季的調查項目都是相同的。然後是遠徵服務中的合同終止，我在開場白中談到的托盤合同，這些都是項目。

Yeah. Got it. Perfect. Thanks, guys. I'll jump back in the queue.

是的。知道了。完美的。謝謝，夥計們。我會跳回到隊列中。

Thank you.

謝謝。

Ken Herbert, RBC.

肯·赫伯特，加拿大皇家銀行。

Hey, good afternoon, John and Sean. And maybe, John, I wanted to first start on the P-8. It sounds like the airframe IDIQ is sort of a continuation of work you've been doing. But I just wanted to clarify that there isn't maybe a step up there in terms of the revenue opportunity. But then second and maybe more importantly on the engine side, can you talk about how much of that could be incremental from a revenue standpoint this year, how that phases in? And what exactly are you doing on the engine side? Is it more sort of parts support or maybe a little more color there?

嘿，下午好，約翰和肖恩。約翰，也許我想先從 P-8 開始。聽起來機身 IDIQ 是您一直在做的工作的延續。但我只是想澄清一下，就收入機會而言，可能沒有任何進步。但其次，也許更重要的是在引擎方面，您能否談談從今年收入的角度來看，其中可以增加多少，以及如何逐步實現？您在引擎方面到底在做什麼？是更多的零件支援還是更多的顏色？

Great, appreciate you asking about those two awards. So gas for the first one, the airframe award, that is a continuation of work that we have today. The volumes of heavy maintenance for that fleet do change over time. And there is a chance that we do see more volume out of that contract in this next phase than we saw in the previous phase. We've got to wait to secure the award and get the schedule from the Navy. But based on what the proposal that we submitted set, it's possible you could see a step up in volume there.

太好了，感謝您詢問這兩個獎項。因此，第一個獎項，即機身獎，是我們今天工作的延續。該機隊的重型維護量確實會隨著時間的推移而改變。我們確實有可能在下一階段看到該合約的成交量比上一階段更多。我們必須等待獲得獎項並獲得海軍的時間表。但根據我們提交的提案所設定的內容，您可能會看到那裡的數量增加。

As it relates to the engine award, that is entirely new business for AAR and what we will be doing is helping to manage the supply chain and provide parts. We have a partner that will actually be doing the wrench turning that will come out once the government releases more information. But we will be working that partner to manage the overall engine flow and then supply parts to that partner in support of the engine overhaul.

由於涉及引擎獎項，這對 AAR 來說是全新的業務，我們將要做的就是幫助管理供應鏈並提供零件。我們有一個合作夥伴，他們實際上會進行扳手轉動，一旦政府發布更多信息，就會出現這種情況。但我們將與該合作夥伴合作管理整個引擎流程，然後向該合作夥伴提供零件以支援引擎大修。

Can you quantify maybe how much growth the engine, the parts supply part of that contract could provide this year?

您能否量化該合約的引擎、零件供應部分今年可能帶來多少成長？

Once we get a full clarity from the government on our position on the contract, we will be able to give more data on that. But we do feel it will be a nice contributor in terms of revenue and income. And in terms of when it starts, obviously, we're going to see if there's a process, et cetera, but we do feel like it will be a meaningful contributor.

一旦政府完全澄清我們對合約的立場，我們將能夠提供更多相關數據。但我們確實認為它將在收入和收入方面做出很好的貢獻。就何時開始而言，顯然，我們將看看是否有一個流程等等，但我們確實覺得它將是一個有意義的貢獻者。

Okay, great. And as we look at the parts supply business, nice margins this quarter. How do we think about the progression there? I mean, is a more meaningful step-up really held back until you can see a maybe more pronounced pull asset opportunity within USM.? Or is there an opportunity through mix and through efficiencies to continue to sort of drive incrementally higher margins on parts supply as we think about the cadence of this year and even into fiscal '26?

好的，太好了。當我們觀察零件供應業務時，本季的利潤率很高。我們如何看待那裡的進展？我的意思是，在 USM 內看到可能更明顯的拉動資產機會之前，更有意義的升級是否真的會受到阻礙？或者，當我們考慮今年乃至 26 財年的節奏時，是否有機會透過混合和效率來繼續推動零件供應利潤率的逐步提高？

Sure. For USM, again, it's somewhat situational and dependent on the availability of material and the price of which we are able to acquire and sell that material so that that moves with the market. What we do see is just continued strength out of our new parts distribution business. The margins there because of our exclusive distribution model are better than what you would normally see in a parts distribution business. And with each new win, we're able to continue to leverage our fixed cost base. So I would say over time, we see the improvement of margin and parts supply on a steady basis coming from the growth in distribution and then on, I would say, more situational basis based on the opportunities we see in USM.

當然。對於 USM 來說，這在某種程度上是視情況而定的，取決於材料的可用性以及我們能夠獲取和銷售該材料的價格，以便其隨市場變化。我們所看到的是我們新的零件分銷業務的持續強勁。由於我們的獨家分銷模式，那裡的利潤比您通常在零件分銷業務中看到的利潤要高。隨著每一次新的勝利，我們都能夠繼續利用我們的固定成本基礎。所以我想說，隨著時間的推移，我們看到利潤和零件供應的穩定改善來自分銷的成長，然後，我想說，基於我們在 USM 看到的機會，更多的情況基礎。

Okay, helpful. And just finally coming out of your fiscal fourth quarter, there was some incremental concern around capacity growth and some spending by more specifically some of the low-cost airlines. And it sounds like that was predominantly sort of idiosyncratic to a few specific airlines situations. But can you just comment more from a macro standpoint on what you're seeing in terms of your airline customers and spending into sort of the back half here of calendar '24? And then I guess, any changes in your schedules backlogs demand as you think about spending into the first part of some sort of calendar '25?

好的，有幫助。剛結束第四財季，人們對運力成長以及更具體地說是一些廉價航空公司的一些支出產生了一些越來越多的擔憂。聽起來這對一些特定航空公司的情況來說主要是一種特殊情況。但是，您能否從宏觀角度更多地評論一下您在 24 日曆後半段所看到的航空公司客戶和支出情況？然後我猜，當您考慮在某種日曆“25”的第一部分進行支出時，您的日程安排中的任何變化都會積壓需求？

Sure, and again, a great question. I'd say for certain customers, certain lower-cost carriers to your point that, yes, they have seen some softness. However, they are not major customers of AAR. The larger carriers, the long-haul carriers, those are the ones that some are continuing to do very well, and those are the ones that are the largest customers of AAR. So from our major customers, we see continued very strong demand signals and they recognize the value proposition.

當然，這又是一個很好的問題。我想說，對於某些客戶、某些廉價航空公司來說，是的，他們已經看到了一些疲軟。然而，他們並不是 AAR 的主要客戶。較大的航空公司、長途航空公司，其中一些航空公司繼續表現出色，並且是 AAR 的最大客戶。因此，從我們的主要客戶那裡，我們看到了持續非常強烈的需求訊號，並且他們認可了價值主張。

We have definitely been in a position where they have favored our maintenance solutions, our part solutions over that of our competitors, even if even if there's a decline in their own volumes. But I would say, broadly, our largest customers are continuing to new express and strong demand throughout the rest of the fiscal year.

與我們的競爭對手相比，他們肯定更青睞我們的維修解決方案、我們的零件解決方案，即使他們自己的銷量有所下降。但我想說，總的來說，我們最大的客戶在本財年剩餘時間裡繼續出現新的快遞和強勁需求。

Great. Thanks, John.

偉大的。謝謝，約翰。

Louie DiPalma, William Blair.

路易·迪帕爾瑪，威廉·布萊爾。

John and Sean, and good afternoon. Great. Can you talk about the business development and pipeline activity with Trax? And when do you expect that Trax can become a viable sales channel for your your parts business?

約翰和肖恩，下午好。偉大的。您能談談與 Trax 的業務開發和管道活動嗎？您預計 Trax 什麼時候可以成為您的零件業務的可行銷售管道？

But yes, thanks for asking about Trax. It was a good quarter for Trax that made a nice contribution to the results in a couple of ways. One, they upgraded certain of their existing customers and they actually were able to capture some new customers. Not all of these things were able to announce customer by customer, but they're making really nice progress in the market.

但是，是的，感謝您詢問有關 Trax 的問題。對於 Trax 來說，這是一個不錯的季度，它在幾個方面為業績做出了很好的貢獻。第一，他們升級了某些現有客戶，並且實際上能夠吸引一些新客戶。並非所有這些產品都能逐一宣布，但它們在市場上取得了非常好的進展。

One of the main reasons we felt that we should acquire tracks that could bring value to their business was our ability to open doors for them, big doors for them in the market with larger airlines that may not have been comfortable turning their ERP system over to a smaller company like Trax. We are seeing that play out. We're very encouraged by the pipeline of activity we Trax, particularly with some very large airlines. And we're hopeful that in the coming quarters, we'll be able to secure that business which will validate that important element of the acquisition thesis. So we feel good about that.

我們認為我們應該收購能夠為他們的業務帶來價值的賽道的主要原因之一是我們有能力為他們打開大門，為他們打開市場大門，大型航空公司可能不願意將他們的ERP 系統移交給他們。我們正在看到這種情況的發生。我們對 Trax 的一系列活動感到非常鼓舞，特別是與一些非常大的航空公司。我們希望在接下來的幾個季度中，我們將能夠獲得該業務，這將驗證收購論點的重要組成部分。所以我們對此感覺良好。

And then to your second part of your question about Trax as a pipeline for our part sales, that is still something we feel very, very strongly about. In the early years, the first year of the Trax acquisition, our priority has been to improve the operations of Trax, so that they could scale to ultimately support larger customers. And we made a great deal of progress in that regard. Once we feel good about what we've done there, we will turn our attention to the integration between a are on track around selling parts, but we're still a little bit away from being able to get that done.

然後，關於 Trax 作為我們零件銷售管道的問題的第二部分，這仍然是我們非常非常強烈的感受。早年，也就是收購 Trax 的第一年，我們的首要任務是改善 Trax 的運營，以便它們能夠擴展規模，最終支援更大的客戶。我們在這方面取得了很大進展。一旦我們對在那裡所做的事情感到滿意，我們就會將注意力轉向圍繞銷售零件的軌道之間的整合，但我們距離完成這一目標還有一點距離。

Great. A few quarters ago still on track. I think you mentioned Singapore Airlines and Archer Aviation as new customers. How are the implementation coming?

偉大的。幾個季度前仍處於正軌。我想你提到了新加坡航空和阿徹航空作為新客戶。實施進度如何？

They're complete and those customers are up and running and live. There's another significant customer that we hadn't announced publicly that in that same period of time is up and running and live. We upgraded another existing customer to the latest and greatest suite of offerings from Trax. That implementation went well and have live.

它們已經完成，並且這些客戶已啟動並運行並上線。我們還沒有公開宣布另一位重要客戶在同一時間段內已啟動並運行並上線。我們將另一位現有客戶升級到 Trax 最新、最好的產品套件。該實施進展順利並已上線。

So again, going back to your prior question, one of the main area of focus for us is to be able to handle multiple implementations and upgrades at the same time. That's something that was difficult for Trax to do when they were on their own. And so we've made a lot of progress in being able to take on many things at the same time.

再次回到您之前的問題，我們的主要關注領域之一是能夠同時處理多個實施和升級。當 Trax 獨自一人時，這是很難做到的。因此，我們在能夠同時處理許多事情方面取得了巨大進展。

Great. And following up Ken's question for the Navy, the pair of the Navy P-8 contract. For the engine services contract, did you take that contract away from an incumbent? And is that why you think there's an increased likelihood of a protest?

偉大的。接下來是 Ken 向海軍提出的關於海軍 P-8 合約的問題。對於發動機服務合同，您是否從現任者手中奪走了該合約？這就是您認為抗議可能性增加的原因嗎？

I can't say about the incumbent, but we -- I don't know if there will be a process or not. We don't. But to the extent that there were multiple bidders rather than roll up, whether it was an incumbent on that, that's why we always have our eye open to a potential further. But as you know, in the government world, that's it's very common.

我不能談論現任者，但我們——我不知道是否會有一個過程。我們不這樣做。但在某種程度上，有多個競標者而不是匯總，無論它是否是現任競標者，這就是為什麼我們總是對進一步的潛力保持警惕。但如您所知，在政府界，這種情況很常見。

Yeah, definitely. And are there many other types of these engine contracts out there for the different of the Navy or Air Force platforms that you can either take away from at the incumbents or just new work in general?

是的，絕對是。是否有許多其他類型的發動機合約適用於不同的海軍或空軍平台，您可以從現有企業那裡拿走這些合同，或者只是一般的新工作？

I would say yes, I would just answer it broadly. I'd say that we feel very strongly that our commercial offerings should play very well for all commercial derivative military aircraft. And so whether it's airframe maintenance or accessory repair or component repair or engine support, we think that we're in a position to take what we do really well in the commercial markets imported to the government markets.

我會說是的，我只是籠統地回答。我想說的是，我們強烈認為我們的商業產品應該非常適合所有商業衍生軍用飛機。因此，無論是機身維護、配件維修、零件維修還是引擎支持，我們認為我們都能夠將我們在商業市場上做得很好的東西引入政府市場。

Sounds good. And one final question on perhaps this is yet for both of you, John and Sean. As it relates to Triumph, can you talk about progress or the plans to in source our repair work for USM? Are we still in the early innings of and integrating trends such that you can and I take some of the Triumph repair capabilities and support your USM business?

聽起來不錯。最後一個問題或許還需要你們約翰和肖恩來回答。就 Triumph 而言，您能談談我們為 USM 提供維修工作的進展或計劃嗎？我們是否仍處於整合趨勢的早期階段，以便您和我可以利用凱旋的一些維修功能並支援您的 USM 業務？

Yes, we have a couple of different factors there. One, in terms of the transfer of work from our existing facility in New York to the facilities in Wellington, Kansas, and Dallas, we're on track there. There is two buckets of work, there's commercial work and there's government work. The commercial work is right on track and the majority has been transferred. The government work takes longer because we have to build capability, get it audited and approved by the government. Once that happens, we can cut the work-over. Both of those areas are absolutely on track.

是的，我們有幾個不同的因素。第一，就將工作從紐約現有工廠轉移到惠靈頓、堪薩斯州和達拉斯的工廠而言，我們正在按計劃進行。有兩類工作：商業工作和政府工作。商業工作正步入正軌，大部分已經轉移。政府工作需要更長的時間，因為我們必須建立能力，並得到政府的審計和批准。一旦發生這種情況，我們就可以減少返工。這兩個領域都絕對步入正軌。

As it relates to in-sourcing really two main buckets of work there. One is to support the USM business, as you just mentioned, that is largely done were insourcing all that we can out today for the USM business. The longer term element of that is the work supporting our commercial programs business. And there, I would say that generally we actually see more opportunity to in-source work for the modest amount of investment in Triumph than we did when we when we agreed to do the deal.

因為它與內包相關，所以實際上有兩個主要工作。一是支援 USM 業務，正如您剛才提到的，這很大程度上是透過內包我們今天可以為 USM 業務提供的一切來完成的。其中的長期要素是支持我們的商業節目業務的工作。在那裡，我想說的是，總的來說，我們實際上看到了比我們同意進行交易時更多的機會，以少量的投資凱旋進行內源工作。

So we're very encouraged by the opportunity there. It will take longer because it's not just work that we control. It's ultimately work that we're doing in support of a third-party customer that's got to prove everything. But the headline there is we see more opportunity to in-source commercial programs work than we previously thought.

因此，我們對那裡的機會感到非常鼓舞。這將需要更長的時間，因為我們控制的不僅僅是工作。最終，我們為支援第三方客戶所做的工作必須證明一切。但總體而言，我們看到內源商業項目發揮作用的機會比我們之前想像的要多。

Fantastic. Thanks, John and Sean.

極好的。謝謝，約翰和肖恩。

Thank you.

謝謝。

Scott Mikus, Melius Research. .

斯科特·米庫斯，Melius 研究公司。。

Yes, I just have a quick one for Sean. Sean, do you have the growth rates for defense and commercial within just the new parks distribution business?

是的，我只是為肖恩準備了一份快速的報告。肖恩，您是否了解新公園分銷業務中國防和商業的成長率？

Not at my fingertips. Yeah, just for this quarter or you mean over the past several quarters?

不在我的指尖。是的，只是本季還是過去幾季？

I mean, you just for this quarter, if you have it. If not, we can follow up offline.

我的意思是，如果你有的話，你只需要這個季度。如果沒有，我們可以線下跟進。

Yes, I'll follow up. And then the Q will be filed later, which will wrap up some of that information. So we can follow up after that.

是的，我會跟進。然後稍後將提交 Q，其中將包含一些資訊。所以我們可以在那之後跟進。

Okay, perfect. Thank you.

好的，完美。謝謝。

Ken Herbert, RBC.

肯·赫伯特，加拿大皇家銀行。

Maybe, Sean, just another quick follow up. Last year, you had a similar sort of cash burn in the first quarter, but then you were nicely positive in terms of cash from operations and free cash through the rest of the year. Do you expect a similar sort of cadence now starting in the second quarter of this fiscal year in terms of cash generation?

也許，肖恩，只是另一個快速跟進。去年，第一季有類似的現金消耗，但在今年剩餘時間裡，您在營運現金和自由現金方面表現得非常積極。您預計從本財年第二季開始，現金產生方面會出現類似的節奏嗎？

And I guess, bigger picture, how should we think about full year free cash generation? Maybe just sort of relative to EBITDA or maybe how much of an improvement should we expect relative to fiscal '24?

我想，從更大的角度來看，我們應該如何考慮全年免費現金的產生？也許只是相對於 EBITDA 而言，或者相對於 24 財年我們應該預期有多少改善？

Yeah. So I would expect a similar cadence from Q1 for the balance of the year in terms of cash flow generation, just seasonality with Q1 and timing of cash flows. And then as it relates to the balance of the fiscal year, I would expect that inventory will be a net user of capital of cash as we continue to grow the parts supply businesses specifically. In terms of AAR, I think from a DSO standpoint, we keep that pretty consistent and you can use that on your sales growth assumptions.

是的。因此，我預計今年剩餘時間在現金流產生方面將與第一季類似，只是第一季的季節性和現金流的時間安排。然後，由於它與本財年的餘額相關，我預計隨著我們繼續發展零件供應業務，庫存將成為現金資本的淨使用者。就 AAR 而言，我認為從 DSO 的角度來看，我們保持相當一致，您可以將其用於銷售成長假設。

CapEx run rate for this quarter is probably a good number to use. And then interest expense, yes, we mentioned on the call or in my opening remarks that interest expense will be similar to Q1. And then when you think about the back half of the year, that should come down both with a little bit of rate relief on the revolver as well as reduction in net debt on the average borrowings.

本季的資本支出運作率可能是個很好使用的數字。然後是利息支出，是的，我們在電話會議或開場白中提到，利息支出將與第一季類似。然後，當你考慮今年下半年時，隨著左輪手槍利率的一點點下調以及平均借款淨債務的減少，這一數字應該會有所下降。

Okay. So for full year free cash up over last year, but maybe similar to maybe sort of the growth, it sounds like working capital is going to continue to be a tail or a headwind in terms of free cash generation this year as well.

好的。因此，就全年自由現金而言，比去年有所增加，但可能與成長類似，聽起來營運資本也將繼續成為今年自由現金產生的尾隨或逆風。

Yeah, up over last year with net working capital still be a net consumer of cash with overall cash flow higher than last year.

是的，比去年增加，淨營運資本仍是現金的淨消費者，整體現金流量高於去年。

Perfect. Thanks, Sean.

完美的。謝謝，肖恩。

Thank you. Ladies and gentlemen, at this time, I would like to turn the call back over to management for closing remarks.

謝謝。女士們、先生們，此時此刻，我想將電話轉回給管理階層，讓其致閉幕詞。

Thank you very much. We really appreciate all the time and the interest and support. And we look forward to being back here in the January to talk about Q2. Thank you.

非常感謝。我們非常感謝大家一直以來的關注與支持。我們期待在一月回到這裡討論第二季。謝謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。