Alamo Group Inc (ALG) 2024 Q1 法說會逐字稿

Good day and welcome to the Alamo Group First Quarter 2024 earnings conference call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask a question to ask a question. You may press star, then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Edward Rizzuti, Executive Vice President, General Counsel and Secretary. Please go ahead.

美好的一天，歡迎參加 Alamo Group 2024 年第一季財報電話會議。所有參與者將處於只聽模式。如果您需要協助，請按星號鍵和零向會議專家發出訊號。今天的演講結束後，將會有一個提問的機會。您可以按星號，然後按按鍵式電話上的一個。若要撤回您的問題，請按星號然後按兩顆。請注意此事件正在被記錄。我現在將會議交給執行副總裁、總法律顧問兼秘書愛德華·裡祖蒂 (Edward Rizzuti)。請繼續。

Thank you. And by now you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact us at 2128273746 and we will send you a release and make sure we run the company's distribution list. There will be a replay of the call, which will begin one hour after the call and run for one week. The replay can be accessed by dialing 18773447529 with pass code 9093220. Additionally, the call is being webcast on the Company's website at w. w. w. dot alamo dash group.com, and a replay will be available for 60 days.

謝謝。現在你們應該都收到了新聞稿的副本。但是，如果有人遺失了一份副本並希望收到一份，請致電 2128273746 與我們聯繫，我們將向您發送新聞稿，並確保我們運行公司的分發清單。電話會議將進行重播，重播將於電話會議後一小時開始，持續一週。可透過撥打 18773447529（密碼 9093220）觀看重播。 w。 w。 dot alamo dash group.com，可以重播 60 天。

On the line. With me today are Jeff Leonard, President and Chief Executive Officer, Richard Wehrle, Executive Vice President, Chief Financial Officer, and Agnes Kamps, Executive Vice President and Treasurer. Management will make some opening remarks and then we will open up the line for your questions.

在線上。今天與我在一起的有總裁兼執行長 Jeff Leonard、執行副總裁兼財務長 Richard Wehrle 以及執行副總裁兼財務長 Agnes Kamps。管理層將發表一些開場白，然後我們將開放您的提問熱線。

During the call today, management may reference certain non-GAAP numbers in their remarks. Reconciliations of these non-GAAP results to applicable GAAP numbers are included in the attachments to our earnings release.

在今天的電話會議中，管理階層可能會在演講中引用某些非公認會計準則資料。這些非 GAAP 結果與適用的 GAAP 資料的對帳包含在我們收益發布的附件中。

Before turning the call over to Jeff, I would like to make a few comments about forward-looking statements. We will be making forward-looking statements today that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors, which could cause actual results to differ materially are the following adverse economic conditions, which could lead to reduction in overall market demand, supply chain disruptions, labor constraints, competition, weather, currency-related issues, geopolitical events and other risk factors listed from time to time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

在將電話轉給傑夫之前，我想對前瞻性陳述發表一些評論。我們今天將根據 1995 年《私人證券訴訟改革法案》的安全港條款作出前瞻性陳述，前瞻性陳述涉及已知和未知的風險和不確定性，可能對公司未來期間的實際業績產生影響與預測結果存在重大差異。在這些因素中，可能導致實際結果出現重大差異的因素包括以下不利的經濟條件，這可能導致整體市場需求減少、供應鏈中斷、勞動力限制、競爭、天氣、貨幣相關問題、地緣政治事件和其他風險公司的SEC 報告中不時列出的因素。本公司不承擔更新本文所含資訊的任何義務，這些資訊僅代表截至目前的情況。

I would what I would now like to introduce Jeff Leonard, Jeff, please go ahead.

我現在想介紹傑夫·倫納德，傑夫，請繼續。

Thank you Ed. We want to thank everyone who has joined us on the conference call today and express our appreciation for your continued interest in Alamo Group first quarter shaped up largely in line with our expectations, and we were pleased overall with the financial results we reported today. I would now like to turn the call over to Richard, who will take us through a review of our financial results for the first quarter. I will then provide additional comments on the results and say a few words about the outlook for the second quarter and the balance of 2024. Following our formal remarks, we look forward to taking your questions. Richard, go ahead.

謝謝你艾德。我們要感謝今天參加我們電話會議的所有人，並對您對Alamo Group 第一季的持續關注表示感謝，該集團第一季的業績基本上符合我們的預期，總體而言，我們對今天報告的財務業績感到滿意。我現在想把電話轉給理查德，他將帶領我們回顧第一季的財務表現。然後，我將對結果發表更多評論，並就第二季度的前景和 2024 年的餘額說幾句話。理查德，繼續吧。

Thanks, Jeff, and good morning, everyone. Alamo Group's First Quarter 2024 and with a solid performance that produced record net sales, driven by continued strong demand for our products.

謝謝傑夫，大家早安。 Alamo 集團 2024 年第一季業績穩健，在對我們產品持續強勁需求的推動下，淨銷售額創歷史新高。

In the Industrial Equipment division, first quarter consolidated net sales were $425.6 million, an increase of 3% compared to $411.8 million in the first quarter of last year. Gross margin percentage fell by 110 basis points in gross margin dollars decreased by just under [$800], [$900,000] in the quarter compared to the first quarter of 2023. Both margin percent and dollars decrease were driven by underabsorption and product for productivity, inefficiencies in the vegetation management and to a lesser extent, product mix in the industrial equipment operating margin for the first quarter came at $47 million versus $49 million in the first quarter of 2023, a decrease of 4% operating margin as a percent of sales was 11% for the first quarter versus 12% for the same quarter last year. Consolidated net income for the first quarter was $32.1 million for $2.67 per diluted share, a decrease of 4% versus net income of $33.3 million or $2.79 per diluted share for the first quarter of 2023. Our vegetation management division was off in total sales compared to the first quarter of 2023, softness in both the forestry and agricultural markets continued due to due to inflation and a higher interest rate and a higher interest rate environment.

在工業設備部門，第一季綜合淨銷售額為 4.256 億美元，比去年第一季的 4.118 億美元成長 3%。與2023 年第一季相比，本季毛利率下降了110 個基點，毛利率下降了近[800 美元]，[900,000 美元]。的產品造成的在植被管理方面，在較小程度上，第一季工業設備產品組合的營業利潤率為4700 萬美元，而2023 年第一季為4900 萬美元，營業利潤率下降了4%，佔銷售額的百分比為11第一季的成長率為 12%，而去年同期為 12%。第一季合併淨利潤為 3,210 萬美元，稀釋後每股收益 2.67 美元，比 2023 年第一季淨利潤 3,330 萬美元，稀釋後每股收益 2.79 美元下降 4%。膨脹和較高的利率以及較高的利率環境，林業和農業市場持續疲軟。

Net sales were $223.7 million, a decrease of 13% compared to $256.4 million for the first quarter of 2023. We've been monitoring dealer inventory levels, which are up but not at historical levels.

淨銷售額為 2.237 億美元，比 2023 年第一季的 2.564 億美元下降 13%。

The division's operating income for the first quarter of $21.7 million, almost 10% of sales, down 40% versus [$336.5 million], 14% of sales for the same period in 2023. This division reduced its labor force during the quarter at a larger manufacturing locations and still almost hit 10% operating income, a solid accomplishment. This is also an improvement of 50 basis points compared to the fourth quarter of 2023 Industrial Equipment division. Net sales had a tremendous quarter coming in at $201.8 million, up 30% compared to $155.3 million -- $155.3 million for the first quarter of 2023. This was due to a large due to a solid performance across all product lines, particularly vacuum trucks levers to breed collectors and snow removal equipment. While component part receipts continue to return to a more consistent cadence, the division continued to have a few late component deliveries, which impacted operations, although not a success but not as significantly as previous quarters. This resulted in a substantial rise in operating margin in the first quarter of 2024 to $25.3 million, just under 13% of sales compared to $12.5 million or 8% of sales for the first quarter of 2023, an increase of over 102%, the Company's backlog at the end of 2023 at the end at the end of the first quarter of 2024 came in at just over $831 million, down 16% compared to backlog levels at the end of the first quarter of 2023, but still at a healthy level.

該部門第一季的營業收入為2,170 萬美元，幾乎佔銷售額的10%，比2023 年同期的[3.365 億美元]下降了40%，佔銷售額的14%。勞動力，幅度更大。與 2023 年第四季工業設備部門相比，這也提高了 50 個基點。本季淨銷售額達到2.018 億美元，與2023 年第一季的1.553 億美元（1.553 億美元）相比增長了30%。 。雖然零件收貨繼續恢復到更一致的節奏，但該部門仍然有一些零件交付延遲，這對營運產生了影響，雖然不是成功，但不如前幾季那麼嚴重。這導致2024 年第一季的營業利潤大幅上升至2,530 萬美元，略低於銷售額的13%，而2023 年第一季的營業利潤率為1,250 萬美元，佔銷售額的8%，增幅超過102%。水平。

Few additional items I'd like to cover that are related to the balance sheet at the end of the first quarter of 2024 which were continued to remain strong. Working capital increased about $61 million compared to the first end of the first quarter of 2023. The increase primarily resulted from higher accounts receivable and to a lesser extent, inventory during the first quarter of this year, as we expected, we had a slight increase in our credit facility expecting excluding pay down paying back inter-company loans at the end of the year. Our bank leverage ratio for the first quarter of 2024 was just over [1.31], down from [1.7] to 1 at the end of the first quarter of 2023. And finally, the Company's trailing 12 months EBITDA came in at just over $246 million flat to year end of 2023, which was a record for 2024. Cash flow should should remain so should cash flow should remain healthy as our focus will be to continue to reduce both inventory and debt levels. We will remain disciplined in our execution, controlling costs and expenses as inflation and interest rates are expected to continue to put pressure on our margins, supply chain deliveries and reduction in freight costs. Freight costs will be a major focus for the company in 2024.

我想介紹一些與 2024 年第一季末資產負債表相關的其他項目，該資產負債表繼續保持強勁。與2023 年第一季初相比，營運資本增加了約6,100 萬美元。增加在我們的信貸安排中，預計不包括在年底償還公司間貸款的首付。我們 2024 年第一季的銀行槓桿率略高於 [1.31]，從 2023 年第一季末的 [1.7] 降至 1。持平，這是2024 年的記錄。我們將繼續嚴格執行，控製成本和費用，因為通貨膨脹和利率預計將繼續對我們的利潤、供應鏈交付和貨運成本降低造成壓力。貨運成本將成為該公司2024年的主要關注點。

So in summary, Q1 of 2024 was what we had anticipated for Alamo Group sales were up 3%. The margins and net income were off mainly due to weak market conditions of vegetation management, we were pleased that our Board recently approved our regular quarterly dividend of $0.26 per share, up 15% compared to $0.22 per share for the first quarter of 2023.

總而言之，2024 年第一季 Alamo 集團銷售額成長 3%，符合我們的預期。利潤率和淨利潤下降主要是由於植被管理市場狀況疲軟，我們很高興董事會最近批准了每股 0.26 美元的定期季度股息，較 2023 年第一季每股 0.22 美元增長 15%。

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

這樣，我會將電話轉回給傑夫。

Thank you, Richard. I'd like to add my personal thanks to everyone who's joined us on the call this morning, the company's first quarter results were broadly in line with our expectations. Given the current dynamics of our markets, net sales in the quarter established another all-time record despite the ongoing impact of higher interest rates, which are constraining activity primarily in the markets for our vegetation management equipment market for Alamos forestry and tree care equipment has been the most impacted by the higher rates. Many commercial tree care contractors who purchased our total chippers and stump riders are family owned small businesses that rely on third party financing for their equipment purchases. Higher interest rates have affected these customers in the form of higher prices when they walk into a dealership. And the dealer is forced to pass along their own higher floor plan financing costs, then potential buyers or impact of a second time when they see third-party financing to purchase a piece of equipment and incur higher finance charges to do so the result has been increasing constantly in the market with many buyers content to wait for lower interest rates, but for making a firm buying commitments, dealers are implementing incentive programs in an effort to reduce inventory, but are facing an increasingly reluctant cash-strapped pool of potential buyers at the upper end of our forestry and tree care range. Demand for our large industrial poultry chippers and grinders is largely driven by waste recycling and biomass production. The United States and Canada are ranked number one and number two among the world's producers and exporters of wood pellet file. A few North American pellet producers depend on logging and lumber production residue as primary sources of feedstock, tighter residue supplies and higher prices have pressured the operating margins of North American pellet producers causing them in some cases to postpone investment in new processing equipment. At the same time, dealer inventories remain elevated above contract levels during the first quarter the agricultural equipment market is encountering similar dynamics, the combination of softer commodity price stock crop prices and higher for longer interest rates, constrained sales of ag equipment and other outdoor power equipment during the first quarter after three solid years, well above the long-term average inflation. Adjusted US. net cash farm income is expected to decline in 2024 by approximately 5% compared to the 2023 -- 2003 to 2023 long-term trend. US. two wheel drive tractor sales in the first quarter were down 13.4% compared to the first quarter of 2023, with tractors in the 40 to 100 horsepower class, down 8% and tractors less than 40 horsepower were down 17% compared to the first quarter of 2023. In the face of these headwinds, the vegetation management division reported net sales that were down 12.7% compared to the first quarter of 2023, the division's order bookings were down were 41% lower than in the same period of the prior year. Vegetation management backlog declined by about 48%, primarily due to the combined effects of fewer new orders during the first quarter and cancellation of orders during 2023. As previously reported, these were primarily in the forestry and tree care. Backlog also declined in the divisions North American agricultural equipment group that serves hobby farm and ranch segment. This group both new orders and backlog declined year over year due to the combined effects of higher interest rates and higher channel inventory. However, we were encouraged that order bookings for our more products began to show early modest signs of recovery in the final weeks of the third quarter. The slowing demand in these two groups adversely impacted absorption and efficiency of vegetation management, major manufacturing facilities to address this division took actions to reduce production capacity at its largest US facilities, and further actions will be taken as warranted moving forward. In addition, the division initiated the closure of a facility that produces spare and wear parts for classic agricultural equipment. The benefits of these actions will begin to be evident in the company's second quarter results. Sales of vegetation management equivalent to governmental agencies was a notable bright spot for this division. In the first quarter. The division's governmental mowing businesses in North America, Europe and the United Kingdom continued to perform well and at a brisk pace. Both sales and backlog remained elevated for this part of the business and market activity remains bullish. But with this division's larger business groups facing strong headwinds that drove sales lower vegetation management operating income declined 450 basis points, and EBITDA also moved 380 points lower compared to prior year first quarter on a sequential basis, the division's operating income improved by nearly 10% and operating margin improved by 500 basis points compared with the fourth quarter of 2023. Our Industrial Equipment division had an excellent first quarter. State and county governments remained on a solid fiscal footing as they ended 2024 forecast declines in state revenue for 2023 did not materialize and many states continuing to record budget surpluses last year, steam rainy day funds remain historically elevated. At the municipal level, the situation was somewhat more nuanced as a number of American cities struggled with the cost of caring for rapidly growing vibrant communities. However, governmental markets for the division's products remained very strong during the first quarter across the board at both quoting and ordering activity remained historically elevated. Against this backdrop, Industrial Equipment division net sales improved by 30% and backlog rose 17% compared to the first quarter of 2023. The division's order bookings improved by over 25% compared to the first quarter of the prior year and were its highest quarterly bookings ever. All of the divisions, product groups reported higher sales, strong ordering activity and higher backlog. Non-governmental markets for industrial equipment also remained strong on the back of the continued durability of the North American economy. And mildly aided by the stimulus effect of the recent federal infrastructure investment and Jobs Act efficiencies improved in the division product in the division's primary production facilities as the pace of production increased with very strong momentum across all of its product groups. Industrial Equipment Division operating income improved 440 basis points and EBITDA grew 410 basis points. On a sequential basis, this division's operating income improved slightly by 1% and its operating margin improved by 20 basis points to 12.5% of sales.

謝謝你，理查。我想向今天早上參加我們電話會議的所有人表示我個人的感謝，該公司第一季的業績基本上符合我們的預期。鑑於我們市場當前的動態，儘管利率上升的持續影響，本季度的淨銷售額創下了另一個歷史記錄，這主要限制了阿拉莫斯林業和樹木護理設備植被管理設備市場的活動。最大。許多購買我們的全削片機和樹樁騎手的商業樹木護理承包商都是家族擁有的小型企業，他們依靠第三方融資來購買設備。當這些客戶走進經銷店時，更高的利率以更高的價格的形式影響了他們。而經銷商被迫轉嫁自己較高的平面圖融資成本，那麼當潛在買家看到第三方融資購買一件設備並因此產生更高的財務費用時，或者第二次受到影響，結果就已經是這樣了。潛在買家我們的林業和樹木護理範圍的高端。對我們的大型工業家禽削片機和研磨機的需求主要是由廢物回收和生物質生產所驅動的。美國和加拿大在全球木屑顆粒生產國和出口國中分別排名第一和第二。一些北美顆粒生產商依賴伐木和木材生產殘渣作為主要原料來源，殘渣供應緊張和價格上漲給北美顆粒生產商的經營利潤帶來壓力，導致他們在某些情況下推遲對新加工設備的投資。同時，第一季經銷商庫存仍然高於合約水平，農業設備市場也遇到了類似的動態，大宗商品價格疲軟，農作物價格走軟，長期利率走高，農業設備和其他戶外動力的銷售受到限制經過三年的穩定成長，第一季的設備價格遠高於長期平均通膨水準。調整後的美國。與2023年－2003年至2023年的長期趨勢相比，預計2024年農場淨現金收入將下降約5%。我們。一季度兩輪驅動拖拉機銷量較2023年第一季下降13.4%，其中40至100馬力級別的拖拉機較2023年第一季下降8%，40馬力以下拖拉機較2023年第一季下降17% 2023年。植被管理積壓下降了約 48%，主要是由於第一季新訂單減少和 2023 年訂單取消的綜合影響。北美農業設備集團的業餘農場和牧場部門的積壓訂單也有所下降。由於利率上升和渠道庫存增加的綜合影響，該集團的新訂單和積壓訂單均較去年同期下降。然而，令我們感到鼓舞的是，我們更多產品的訂單預訂在第三季最後幾週開始顯示出早期溫和復甦的跡象。這兩個群體的需求放緩對植被管理的吸收和效率產生了不利影響，為了解決這一問題，主要製造工廠已採取行動減少其最大的美國工廠的產能，並將在必要時採取進一步行動。此外，該部門還關閉了一家生產傳統農業設備備件和易損件的工廠。這些行動的好處將在公司第二季的業績中開始顯現出來。相當於政府機構的植被管理銷售是該部門的一個顯著亮點。在第一季。該部門在北美、歐洲和英國的政府割草業務繼續表現良好且發展迅速。這部分業務的銷售和積壓訂單仍然很高，市場活動仍然看漲。但由於該部門較大的業務集團面臨強勁阻力，導致銷售額下降，植被管理營業收入下降了450 個基點，且EBITDA 也比去年第一季環比下降了380 個基點，該部門的營業收入提高了近10%與 2023 年第四季相比，營業利潤率提高了 500 個基點。州和縣政府的財政基礎仍然穩固，因為他們在 2024 年結束時預測的 2023 年國家收入下降並未成為現實，而且許多州去年繼續錄得預算盈餘，因此應急基金仍處於歷史高位。在市一級，情況更加微妙，因為許多美國城市都在努力應對照顧快速增長的充滿活力的社區的成本。然而，該部門產品的政府市場在第一季仍然非常強勁，報價和訂購活動都保持在歷史最高水準。在此背景下，工業設備部門淨銷售額較 2023 年第一季成長 30%，積壓訂單成長 17%。所有部門、產品組的銷售額均上升，訂單活動強勁，積壓訂單也增加。在北美經濟持續耐用的背景下，工業設備的非政府市場也保持強勁。在最近聯邦基礎設施投資和就業法案的刺激效應的幫助下，該部門主要生產設施的部門產品效率得到了提高，所有產品組的生產步伐都以非常強勁的勢頭增長。工業設備部門營業收入提高了 440 個基點，EBITDA 成長了 410 個基點。與上一季相比，該部門的營業收入小幅提高了 1%，營業利潤率提高了 20 個基點，達到銷售額的 12.5%。

Turning our attention to the Company's operations more broadly, supply chain performance in both divisions continued to improve during the first quarter, although a few challenges were made, truck chassis deliveries continuing to be somewhat constrained by shortages of chassis frame rails, which again impacted production for nearly all of the truck chassis OEMs, a shortage of Allison Transmissions due to production disruptions late in 2023 and a shortage of transmission control modules further held back medium duty truck chassis deliveries during the quarter. Costs for raw materials and industrial components stabilized during the quarter and were another bright spot. Steel prices remain volatile, but generally trended slightly downward during the first quarter and have declined significantly since peaking in late 2021. Skilled labor availability, which has been very challenging in most areas where the company operates since the onset of the pandemic has now improved in many areas, and this is helping fuel productivity. We were obviously extremely pleased that through the determined work of our teams, both of our operating divisions were able to sequentially expand their operating margins relative to the fourth quarter of 2023 regarding our outlook for the second quarter and the second half of 2024. We believe that the market conditions that we encountered in the first quarter that both negative and positive are likely to persist. The headwinds in front of us and vegetation management in the first quarter are not likely to meaningfully abate until inventory declines and interest rate reductions are announced until then, we'll continue to collaborate closely with our dealers to incentivize retail sales and reduce inventory. By doing so. While we expect sales growth to continue, we anticipate that the pace of growth will be somewhat more modest for the next several quarters. We will continue our determined actions to reduce costs and further simplify our structure through additional facility consolidations.

將我們的注意力轉向更廣泛的公司運營，第一季兩個部門的供應鏈績效繼續改善，儘管遇到了一些挑戰，卡車底盤交付繼續受到底盤車架導軌短缺的限制，這再次影響了生產對於幾乎所有卡車底盤OEM 而言，由於2023 年底生產中斷而導致艾里遜變速箱短缺，以及變速箱控制模組短缺，進一步阻礙了本季中型卡車底盤的交付。本季原料和工業零件成本穩定，是另一個亮點。鋼材價格仍波動，但第一季整體呈現小幅下跌趨勢，自2021 年底見頂以來已大幅下降。現在已在2021 年有所改善。我們顯然非常高興，透過我們團隊的堅定工作，我們的兩個營運部門能夠相對於2023 年第四季度連續擴大其營運利潤率，這對於我們對2024 年第二季度和下半年的展望而言。我們相信我們在第一季遇到的負面和正面的市場狀況都可能持續下去。在庫存下降和降息宣布之前，我們面前的阻力和第一季的植被管理不太可能顯著減弱，在此之前，我們將繼續與經銷商密切合作，以刺激零售銷售並減少庫存。透過這樣做。雖然我們預計銷售將繼續成長，但我們預計未來幾季的成長速度將較為溫和。我們將繼續採取堅定的行動，透過額外的設施整合來降低成本並進一步簡化我們的結構。

Finally, we will not hesitate to further adjust our capacity as needed to match future demand on a timely basis.

最後，我們將毫不猶豫地根據需要進一步調整產能，及時滿足未來的需求。

It's worth noting that our balance sheet strengthened during the first quarter as total debt net of cash declined nearly 24% to its lower level, lowest level since we acquired the Morbark business in 2019. Our balance sheet positions us well for what we believe will be a more active year for M&A. And we are optimistic about our M&A pipeline as we have more actionable opportunities than we've seen for the past couple of years.

值得注意的是，我們的資產負債表在第一季有所加強，扣除現金的總債務下降了近24% 至較低水平，這是我們2019 年收購Morbark 業務以來的最低水平。表使我們處於有利地位，我們相信，併購活動更加活躍的一年。我們對我們的併購管道感到樂觀，因為我們擁有比過去幾年更多的可操作機會。

In summary, while the next couple of quarters are expected to be challenging, we expect favorable development of the company to continue, albeit at a somewhat more modest pace for the remainder of 2024. We will continue to execute our strategy to grow the Company at an attractive rate while expanding operating margins.

總之，雖然預計未來幾季將面臨挑戰，但我們預計公司將繼續保持良好發展，儘管在 2024 年剩餘時間內發展速度會有所放緩。力的利率，同時擴大營業利潤。

Before closing my remarks today, I would like to thank our customers, dealers, suppliers, our thousands of exceptional employees and our financial stakeholders for their continued support of the Company's.

在結束今天的演講之前，我要感謝我們的客戶、經銷商、供應商、數千名優秀員工以及我們的財務利害關係人對公司的持續支持。

This concludes our prepared remarks. We're now ready to take your questions.

我們準備好的演講到此結束。我們現在準備好回答您的問題。

We will now begin the question and answer session to ask a question. You may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then first question comes from Chris Moore from CJS Securities.

我們現在開始問答環節來提問。您可以按按鍵式電話上的星號，然後按一個。如果您使用免持電話，請在按鍵前拿起聽筒。如果您的問題已解決，但您想撤回您的問題，請按星號，然後第一個問題來自 CJS 證券的 Chris Moore。

Please go ahead.

請繼續。

Hey, good morning, guys.

嘿，早上好，夥計們。

Great quarter.

很棒的季度。

Thanks for taking a couple of questions.

感謝您提出幾個問題。

Good morning.

早安.

Good morning on vegetation vegetation EBIT margin 9.7%, down significantly year over year, up a little bit sequentially. You mentioned actions to protect the margin. Can you stay around the 10% level for the balance of '24 or is visibility just not there to make that to make that up -- ?

早安植被息稅前利潤率為9.7%，較去年同期大幅下降，較上季小幅上升。您提到了保護保證金的行動。你能否在 24 年餘下時間裡保持在 10% 左右的水平，或者可見度不足以彌補這一點 - ？

I'm fairly confident we can, and that's what we're expecting to deem, to be honest with you, that's why we are adjusting our capacity now. And we've taken some fairly significant actions and some that we haven't announced yet. So I have to be a little bit careful what I say here, but no know we're taking enough actions to make sure we can protect that bottom line administration, but that's the whole intent.

我相當有信心我們可以，這就是我們所期望的，老實說，這就是我們現在調整產能的原因。我們已經採取了一些相當重要的行動，還有一些我們尚未宣布。因此，我在這裡所說的話必須小心一點，但不知道我們是否正在採取足夠的行動來確保我們能夠保護底線管理，但這就是全部意圖。

Chris, no matter what the market does to us and whatever our sales call we need to maintain 10% distribution.

克里斯，無論市場對我們有何影響，無論我們的銷售電話如何，我們都需要保持 10% 的分銷。

Terrific. Thank you. That's helpful. Industrial bookings, backlog both up significantly, what is lead times look like at this point in that segment?

了不起。謝謝。這很有幫助。工業訂單和積壓訂單都大幅增加，目前該細分市場的交貨時間是如何的？

You know, they're actually normalizing what I will close around about 120 days with the vacuum trucks and the bigger equipment and falling fairly rapidly, though the truck OEMs are really getting one step. Some of the problems I mentioned in my remarks on the call are beginning to clear a little bit. And we're very optimistic about our deliveries of chassis, which really drives that whole division, as you know. So I think three months is pretty typical right now for us and we have more than adequate capacity in that division.

你知道，他們實際上正在使我將在大約 120 天左右關閉的真空卡車和更大的設備正常化，並且下降得相當快，儘管卡車原始設備製造商確實邁出了一步。我在電話會議發言中提到的一些問題已經開始變得清晰。我們對底盤的交付非常樂觀，正如你所知，這確實推動了整個部門的發展。因此，我認為現在對我們來說三個月是非常典型的，我們在該部門擁有足夠的能力。

Got you.

明白你了。

You mentioned still a few kind of lingering issues on the supply chain side. Any any worries at this point from where you sit today. Any reason to think that they will kind of marginally continuing to improve versus, you know, sometimes go the other way we're trying to get divided I don't have any visibility going.

您提到了供應鏈方面仍然存在一些揮之不去的問題。從您今天坐的位置來看，目前有任何擔憂。有任何理由認為他們會稍微繼續改進，而不是，你知道，有時會採取我們試圖分裂的另一種方式，我沒有任何可見性。

Yes, horizontal human situation getting any worse. And I think that will continue to improve. And I expect the pace of improvement will pick up as well, we are seeing notable improvements across the board in the supply chain, and it's not just truck chassis. It's things like hydraulic components, cylinders, all kinds of things that we consume as the economy started as a whole whole normalized now lead times are coming down in most parts of our slides.

是的，人類的橫向處境變得更糟。我認為這將繼續改善。我預計改進的步伐也會加快，我們看到供應鏈的全面顯著改進，而不僅僅是卡車底盤。像是液壓元件、氣缸之類的東西，隨著經濟開始整體正常化，我們消耗的各種東西現在在我們幻燈片的大部分部分都在下降。

Got it up. I appreciate it, guys. I will leave it there.

明白了。我很感激，夥計們。我會把它留在那裡。

Thank you, Chris.

謝謝你，克里斯。

The next question comes from Mike Shlisky, Cesky from D.A. Davidson.

下一個問題來自 D.A. Cesky 的 Mike Shlisky。戴維森。

Please go ahead.

請繼續。

Yes, hi, good morning. Thanks for taking my questions. Some of five minutes could you maybe can you remind us of what percentage of your business is serving the public sector or servers?

是的，嗨，早安。感謝您回答我的問題。您能否用五分鐘的時間提醒我們，您的業務中有多少比例是為公共部門或伺服器提供服務的？

Private players has served the public sector. I'd imagine that group of customers is seeing fewer problems under the private sector. It sounds like you have said pollinating that's public document and pretty decent business. Private is a little more challenged.

私人參與者為公共部門服務。我想這群客戶在私部門遇到的問題會更少。聽起來你好像說過授粉是公開文件，而且是相當不錯的生意。私人企業面臨的挑戰更大一些。

So what are the deep broad what the broad breakdown there?

那麼什麼是深層的廣泛的，什麼是廣泛的細分呢？

It's still I think what we've said before, it's roughly between 20% and 25% of that is from the hub into the hobby farmer Inrange and it allows all data between industrial and governmental book. I'm sorry, I'm sorry.

我認為我們之前說過，其中大約 20% 到 25% 是從中心傳輸到業餘農民 Inrange，它允許工業和政府書籍之間的所有數據。對不起，對不起。

I was asking is kind of a overall your overall business, what percent of it serves the public sector and what's sort of the private? datacenter taking it broadly? Number two.

我問的是你們的整體業務，其中有多少百分比服務於公共部門，有多少百分比服務於私營部門？資料中心廣泛採用嗎？第二。

Right. I think like I said, I think we're 20% to 25% in that in that space, we're talking about the balances and governmental and industrial and a split.

正確的。我想就像我說的，我認為我們在這個領域佔 20% 到 25%，我們正在談論平衡、政府和工業以及分裂。

Yes, it did appear governmental, Mike runs 40% to 45% of total revenue that.

是的，看起來確實是政府的，麥克掌管著總收入的 40% 到 45%。

Okay.

好的。

There are governmental and then there are contract versus straddle that as you and I've discussed before, we have good contractors that buying lower and use it for both private and public works. When they get a contract to muddle along and state highways. So the numbers are not pure net there is that that's the best number we've been able to produce.

有政府的，然後有合約與跨式的，正如你和我之前討論過的，我們有好的承包商，他們購買較低的價格並將其用於私人和公共工程。當他們拿到一份合同，就可以在州道上混日子。所以這些數字並不是純粹的淨值，這是我們能夠產生的最佳數字。

Got it.

知道了。

Thank you for that color. Appreciate and cleanup of tell us a little bit about the health of your dealer network, especially the dealers there mainly serve the private sector. My guess is a lot of those are simply our dealers or larger other brand dealers that think the prime mover and just want to make sure that you're not seeing you, I'm unable to even take inventory?

謝謝你的那個顏色。感謝並清理告訴我們一些關於您的經銷商網絡的健康狀況的信息，特別是那裡的經銷商主要為私營部門服務。我的猜測是，其中許多只是我們的經銷商或較大的其他品牌經銷商，他們認為是原動力，只是想確保你沒有看到你，我甚至無法盤點庫存？

Actually, we're not we haven't seen any pressure on our accounts receivable. We had one large post the deal last year that we bought new records. We are just going to go and solve and return quite a bit of inventory to us. That was one of the large cancellations I mentioned on the call that Bjorn has since gotten back up to speed and is ordering some equipment from us again. So that's been a positive move. I mean, obviously, dealers are being very cautious right now. I do know that the contractor space closely, but I don't see any that are under particular duress and in light of any probability to fail at this point.

事實上，我們並沒有看到我們的應收帳款面臨任何壓力。去年我們有一個大的交易，我們買了新唱片。我們將去解決並返回相當多的庫存給我們。這是我在電話中提到的大規模取消之一，比約恩後來恢復了速度，並再次向我們訂購了一些設備。所以這是一個積極的舉措。我的意思是，顯然經銷商現在非常謹慎。我確實知道承包商空間緊密，但我沒有看到任何承包商受到特別脅迫，並且考慮到此時有任何失敗的可能性。

Got it.

知道了。

And if any one last one for me on during the first quarter, one of the large machinery players, a bit larger than Alamo kind of certain adjacencies like quarry, our aerial work platforms for that company launched their own brand of medication management equipment within motors, chippers and so on. I know there's sure of their trials overlap with yours or not the Cordova one, just to kind of see if there was overlap, tell us a little bit about in the past that would normally have any issues with some startup company trying to displace more of core or other Alamo brand, but this is a pretty large and well-funded parent company.

如果第一季對我來說最後一個是大型機械製造商之一，比阿拉莫稍大一點，在採石場等某些鄰近地區，我們為該公司推出的高空作業平台在電機內推出了自己品牌的藥物管理設備、削片機等。我知道他們的試驗肯定與你的試驗重疊，或者與科爾多瓦的試驗不重疊，只是為了看看是否有重疊，請告訴我們一些過去的情況，通常情況下，一些新創公司試圖取代更多的試驗時會出現任何問題。

So can you just maybe give us some some commentary on the strength of the Morbark brand, your distribution and your customer base and feel if you have any plan to kind of tell defend your market or is this a trend makes any contraction?

那麼，您能否給我們一些關於 Morbark 品牌的實力、您的分銷和客戶群的評論，以及您是否有任何計劃來捍衛您的市場，或者這是一種導致收縮的趨勢嗎？

I might point out. I know the brands are talking about. We know their products very well. That product line need to see a significant refresh that it hasn't received yet, not ours the competitors. So we don't see any short-term threat from that at all.

我可能會指出。我知道這些品牌正在談論。我們非常了解他們的產品。該產品線需要進行重大更新，但它尚未收到，而不是我們的競爭對手的更新。因此，我們根本看不到任何短期威脅。

As far as the strength of our dealer network, we have long-term loyal dealers at Morbark that have been with us a very long time are deeply invested in the aftermarket business related to those machines, which were most of the money is made. Those big machines are long lived and they run 15, 20 years so the parts revenue stream runs a long time, which is a fairly big barrier to switching for for any large dealer in the space. So no, I'm not particularly concerned about that we know that company well, they've always been that it is not a new thing and just sort of refreshing their spaces.

就我們經銷商網路的實力而言，我們在莫巴克擁有長期忠實的經銷商，他們已經和我們在一起很長時間了，他們對與這些機器相關的售後市場業務進行了深入的投資，這是我們賺到的大部分錢。這些大型機器壽命很長，可以運行 15 年、20 年，因此零件收入流持續很長時間，這對於該領域的任何大型經銷商來說都是一個相當大的障礙。所以不，我並不是特別擔心我們對這家公司很了解，他們一直認為這不是一個新事物，只是刷新了他們的空間。

Okay. That's great color. I appreciate our customer.

好的。那顏色真棒。我很感謝我們的客戶。

The next question comes from Mig Dobre from Baird.

下一個問題來自貝爾德 (Baird) 的米格·多布雷 (Mig Dobre)。

Please go ahead.

請繼續。

Hi, good morning. In the fiber industrial in industrial equipment, can you guys confirm what the contribution from acquisitions was in the quarter revenue-wise?

早安.在工業設備的纖維工業中，你們能否確認收購對本季營收的貢獻是多少？

We normally don't, but probably [$15 million] became a probably roughly.

我們通常不會這樣做，但是 [1500 萬美元] 大概變成了一個大概。

$15 million.

1500萬美元。

Okay. Pressure that Baxter sales, maybe competition to sales was $15 million.

好的。巴克斯特的銷售額（也許是競爭銷售額）達到了 1500 萬美元。

If you back that out the industrial division was still up 20%?

如果你支持這一點的話，工業部門仍然成長了 20%？

Yes, yes, yes. And you know, Jeff, you spent quite a bit of time on on the whole supply chain issue and chassis and so on.

對對對。你知道，傑夫，你在整個供應鏈問題和底盤等問題上花了相當多的時間。

Yes, I was kind of hoping that we'd be done having these kinds of discussions. But apparently we're not.

是的，我有點希望我們能夠結束這類討論。但顯然我們不是。

Yes.

是的。

So Lisa, it sounds like there were some issues in the quarter, but things are getting better. I mean, can't really see where that impacted you.

麗莎，聽起來本季出現了一些問題，但情況正在好轉。我的意思是，我真的看不出這對你有什麼影響。

Would you have been able to recognize higher revenue in industrial equipment? If it wasn't for that. I mean, what was the net impact led to wage inflation?

您是否能夠認識到工業設備的更高收入？如果不是因為那個。我的意思是，導致薪資上漲的淨影響是什麼？

Yes, the short answer is yes, we would have been able to get more revenue out of the quarter. This is simply an issue of these framework.

是的，簡短的回答是肯定的，我們本可以在本季獲得更多收入。這只是這些框架的問題。

Also the truck I've mentioned before, you can certainly talk with Daimler and the other big guys about it, they all share a common supplier in Mexico. But having production problems for a long time, it is getting better, though, maybe for sure, and we've got quite a bit more chassis during the first quarter than we did during the fourth and the third of last year and for a year, I can tell you once the chassis supply situation improved industrial really hit its stride and it is doing that. So I don't want to say there are no constraints, but I also don't want to say these would drop the service. We've been living with them for a while and they are steadily improving the Allison Transmission.

還有我之前提到的卡車，你當然可以與戴姆勒和其他大公司談論它，他們在墨西哥都有一個共同的供應商。但由於長期存在生產問題，情況正在好轉，也許可以肯定的是，我們第一季度的底盤數量比去年第四和第三年以及一年多得多我可以告訴你，一旦底盤供應情況改善，工業就真正邁出了一大步，而且它正在這樣做。所以我不想說沒有限制，但我也不想說這些會放棄服務。我們已經和他們一起生活了一段時間，他們正在穩步改進艾里遜變速箱。

What is another really strength analysis? Normally a very, very reliable supplier. They passed some quality problems that are related to castings and other things. But the main issue is the transmission control modules are in short supply and I don't know who their supplier is, but it's been a significant problem for them and that affects the sort of the high end of the vacuum truck business. But we've done a pretty good job scrambling around that, made defined chassis off lots of other places to keep our production rolling. So I don't think that really not a constraining impact. We probably could have done another perhaps $5 million in the quarter without those challenges in industrial, just to take a ballpark guess on it.

另一種真正的實力分析是什麼？通常是非常非常可靠的供應商。他們通過了一些與鑄件和其他相關的品質問題。但主要問題是傳輸控制模組供應短缺，我不知道他們的供應商是誰，但這對他們來說是一個重大問題，影響了真空卡車業務的高端類型。但我們在這方面做得非常好，在許多其他地方製作了明確的底盤以保持我們的生產順利進行。所以我認為這確實不是一個限制性影響。如果沒有工業領域的這些挑戰，我們本來可以在本季再賺 500 萬美元，只是做個大概的猜測。

I took a note to add to that. Maybe if you look at our 10-Q, which is like $30 million, which continues to remain too high for our liking with over half of that is going to be industrial. And as Jeff mentioned, if you just get a few things, just be more consistent cadence and they they change every quarter. We have something else that's causing some sort of an issue for a delay. But normally that division there about half of that, that's a $12 million to $15 million that we have of that industrial divisions are normally around about half of that. So that, as Jeff said, at least between $5 million and 7 million of extra sales that we've had potential could have had during the quarter.

我做了一個筆記來補充這一點。也許你看看我們的 10-Q，大約是 3000 萬美元，這個數字仍然對我們來說太高了，其中一半以上將用於工業。正如傑夫所提到的，如果你只得到一些東西，只要保持更一致的節奏，它們每季都會改變。我們還有其他一些事情導致了某種延遲問題。但通常情況下，該部門約佔其中的一半，即 1,200 萬至 1,500 萬美元，我們的工業部門通常約為其中的一半。因此，正如 Jeff 所說，我們本季可能會實現至少 500 萬至 700 萬美元的額外銷售額。

It's interesting. So given the fact that things are getting better on a supply chain side, I mean, you you have a healthy amount of backlog in this segment. What's the right way to think about revenue sequentially as the year progresses?

這真有趣。因此，考慮到供應鏈方面的情況正在變得更好，我的意思是，您在這個領域有大量的積壓。隨著時間的推移，按順序考慮收入的正確方法是什麼？

Yes, yes, I think we'll generally see high single digit revenue growth in that division for the balance of this year, maybe a little bit better than that depending on how things play out over time. We have this straight running at the moment, which is obviously a concern we need to get that resolved. And if that gets resolved in a timely manner, then I think my statement will be fairly correct. And I said high single digit, not low.

是的，是的，我認為在今年剩下的時間裡，我們通常會看到該部門的高個位數收入成長，也許會比這好一點，這取決於事情隨著時間的推移如何發展。我們目前正在直線運行，這顯然是我們需要解決的問題。如果這個問題得到及時解決，那麼我認為我的說法將是相當正確的。我說的是高個位數，而不是低。

So but I'm curious and I'm sorry to press you on this a little bit bigger. There's a there's a pricing element, all of this right. That's that's in our store in backlog presumably has a pricing tailwind. So if you're sort of saying that we can grow at least high single digit, does that really imply any real volume growth coming out of your plans? Maybe some, but it doesn't sound like a lot. And I'm wondering why why not more and more leverage there?

所以，但我很好奇，很抱歉在這個問題上向你施加了更大的壓力。有一個定價因素，所有這些都是正確的。這就是我們商店積壓的產品可能具有定價優勢。因此，如果您說我們至少可以實現高個位數的成長，這是否真的意味著您的計劃會帶來任何實際的銷售成長？也許有一些，但聽起來並不多。我想知道為什麼不增加越來越多的槓桿？

Well, I mean, I think that we're still having that kind of pace of build in our plants take. I mean, we're building at a rate that actually has a very attractive rate right now and that has the added effect of improving efficiencies across the operations. Richard made reference to the under absorption in our vegetation management facilities. We have the opposite effect going on in our industrials group of absorption because continuous improvement. And I'm just being a bit cautious here because there's a lot going on right now in that new build out the plan where we have the strike is a big place for us. We're continuing to negotiate there. We're envisioning again yesterday has been about what needs to get solved when you get that strike settled, and I think we can do a bit better than that. But we've already lost a couple of weeks of production in the second quarter as a result of that strike and we're not going to get that back, obviously, hence the caution. But you're right, the momentum is really, really good at industrial right now, both in terms of sales and orders and obviously efficiency in the operations. Our snow removal group is just doing an amazing job right now at a profit level. We've never seen before very strong backlog, very strong ordering and we are considering taking some steps to expand our capacity at the moment, which will involve some investments. At the same time, our street sweeper group at Presidio sitting here running at the moment, that is at a level of profit we haven't ever seen in that business before running very, very well. And then we have the added boost from the from the Royal Truck acquisition, which has been very nice. So I guess maybe I'm too cautious here. Maybe I don't want to over forecast, but I think the growth is going to be very, very nice.

嗯，我的意思是，我認為我們工廠的建設速度仍然如此。我的意思是，我們目前的建設速度實際上非常有吸引力，並且具有提高整個營運效率的附加效​​率。理查德提到了我們的植被管理設施的吸收不足。由於持續改進，我們的工業集團吸收了相反的效果。我只是在這裡有點謹慎，因為現在在新的建設計劃中發生了很多事情，我們的罷工對我們來說是一個重要的地方。我們正在繼續在那裡進行談判。昨天我們再次設想了罷工解決後需要解決的問題，我認為我們可以做得更好一點。但由於那次罷工，我們已經在第二季度損失了幾週的生產，顯然我們不會再恢復了，因此我們必須保持謹慎。但你是對的，現在工業的勢頭確實非常好，無論是在銷售和訂單方面，還是在營運效率方面。我們的除雪小組目前在獲利水準上做得非常出色。我們以前從未見過如此強大的積壓和訂單，我們目前正在考慮採取一些措施來擴大我們的產能，這將涉及一些投資。與此同時，我們普雷西迪奧的街道清掃小組現在坐在這裡運行，這是我們在運行得非常非常好的之前在該行業從未見過的利潤水平。然後，我們還從皇家卡車收購中獲得了額外的推動，這非常好。所以我想也許我在這裡太謹慎了。也許我不想過度預測，但我認為成長將非常非常好。

Interesting.

有趣的。

And something else to add to that big of this division, just like the visitation, they put their price increases in the first part of January 2.5% to 3% of bringing should make some fixed some areas, maybe a little bit more, but nothing huge. On average, it's about 3%. And industrial did $250 million worth of new orders. So that kind of tentative, we're still getting some pretty good volume. Again, it's coming through in the order pace that we've got in all product lines in that division.

還有其他一些東西要添加到這個部門的大範圍內，就像訪問一樣，他們將價格上漲放在一月上旬，帶來的2.5％至3％應該使某些區域固定，也許多一點，但沒有什麼巨大的。平均而言，約為3%。工業領域新訂單價值 2.5 億美元。因此，就這種試探性而言，我們仍然獲得了一些相當不錯的銷售量。同樣，它是按照我們在該部門所有產品線中的訂單速度完成的。

No, I appreciate all the detail here and you kind of got to some of the things that I've been wondering because and there's a question to be asked about capacity rate. I mean, it's I mean, are you at a point now where on your just operating at full capacity and you're you might be struggling a little bit to increase the volume that's coming coming out of the plants. So while you have great backlog, you might have some constraints elsewhere. And that's kind of what I was trying to figure out.

不，我很欣賞這裡的所有細節，你有點明白了我一直想知道的一些事情，因為有一個關於容量率的問題。我的意思是，我的意思是，你現在是否正處於滿載運轉的階段，你可能會在增加工廠產量方面遇到一些困難。因此，雖然您有大量積壓，但其他地方可能會遇到一些限制。這就是我想要弄清楚的。

First off, David, there's a lot of moving pieces right now. As we've mentioned to the previous quarters, we closed our sweeper plan out of in Washington state and we moved that production into our Wisconsin plant or a contract plant there that's getting settled down now and that production is starting to ramp up very nicely. So we are moving things around within the company that's causing us to see some delay in the room. I think the revenue build that you're expecting to see, but I sure like the direction in industrial right now, it's looking really, really positive. But all parts of that division are running very well at the moment. The only negative I can say about that division is the strike. And I think that's just the times that we're in at the moment. But the parties are continuing to negotiate in good faith with a hot and high goodwill to get them to get a contract with inflation. So I'm fairly confident that if it's all to.

首先，大衛，現在有很多令人感動的事情。正如我們在前幾個季度提到的那樣，我們結束了華盛頓州的清掃機計劃，並將生產轉移到威斯康辛州工廠或那裡的合約工廠，該工廠現已安頓下來，產量開始快速增長。因此，我們正在公司內部調動一些東西，這導致我們在房間裡看到一些延誤。我認為收入的成長是你所期望看到的，但我確實喜歡現在工業的方向，它看起來非常非常積極。但目前該部門的所有部門都運作良好。關於該部門我能說的唯一負面因素是罷工。我認為這正是我們目前所處的時代。但雙方仍在繼續以熱烈而高善意的誠意進行談判，以使他們與通膨簽訂合約。所以我相當有信心，如果一切順利的話。

Understand, I do want to ask a couple of questions about vegetation management and Dell John is you discussed here, you know, there's there's still there's still channel inventory that has to be to be worked through, but it sounds like, yes, you're highlighting some things like interest rates, for instance, who knows what the path is going to be on a go-forward basis?

明白，我確實想問幾個關於植被管理的問題，戴爾約翰是你在這裡討論的，你知道，仍然有渠道庫存需要解決，但聽起來，是的，你'例如，當我們強調諸如利率之類的事情時，誰知道未來的發展道路會是什麼？

So I guess my question to you is that actually if nothing changes, if nothing changes in the broader macro environment. How are you thinking about your production and your revenue in this segment for the rest of the year? Is Q1 at a high of $23 million, the high watermark and we should be seeing a gradual sort of production decline here to destock the channel or are you thinking it?

所以我想我向你提出的問題是，實際上如果沒有任何變化，如果更廣泛的宏觀環境沒有任何變化。您如何看待今年剩餘時間內該細分市場的產量和收入？第一季是否達到了 2300 萬美元的高位，這是高水位線，我們應該看到這裡的產量逐漸下降，以減少渠道庫存，還是您這麼認為？

You know, that's a great question. I think as you look at it piece by piece and I'm going to slice it there because it's the only way I know how to answer your question. I think that we're going to see the large window for us to recover sooner because there's a need for those machines. But again, the fundamentals in that business remain pretty positive. We are the only negative feedstock side that I gave some color on during the call. And as I said, we're starting to see some some rebirth in that business already laid out equivalent to the first quarter as did our more business, our traditional lower business, particularly our books of business at a very nice first quarter and a nice end to it as well. So that's coming back have some of our other brands, particularly in the ag space, are still struggling a lot with excess channel inventory that I know you know that story as well aside. So as I think about how vegetation embedded since the revenue is going to be going forward, a lot depends on whether the orders continue to flow them into at least the same pace that we saw in Q1 for the next couple of quarters. We have a couple of quarters where the backlog in that space and that we go hold on to that level of backlog, which is a very traditional level for that division from a long-term point of view that I think the revenue will be stable if the orders start flowing in the second quarter and third, then I think you're going to see a tapering of revenue in that division until we conclude the channel inventory out. But it's not going to be a collapse given the given the backlog that we have there, again, the order rate and parts of that business are already picking up.

你知道，這是一個很好的問題。我想，當你一點一點地看它時，我會把它切成薄片，因為這是我知道如何回答你的問題的唯一方法。我認為我們將看到更快恢復的大窗口，因為需要這些機器。但同樣，該業務的基本面仍然相當樂觀。我們是我在電話會議中給予的唯一負面的原料方。正如我所說，我們開始看到該業務的一些重生，已經與第一季相當，我們的更多業務、我們的傳統較低業務，特別是我們的業務賬簿在第一季非常好，而且業績良好。因此，我們的其他一些品牌，特別是在農業領域，仍然在渠道庫存過剩的問題上苦苦掙扎，我知道你也知道這個故事。因此，當我考慮未來收入將如何成長時，很大程度上取決於訂單是否繼續以至少與我們在接下來的幾季第一季看到的速度相同的速度流動。我們有幾個季度在該領域出現積壓，並且我們會保持該積壓水平，從長期角度來看，這是該部門的一個非常傳統的水平，我認為收入將是穩定的，如果訂單在第二季度和第三季開始流動，然後我認為您將看到該部門的收入逐漸減少，直到我們結束渠道庫存。但考慮到我們那裡的積壓情況，這不會是一場崩潰，訂單率和部分業務已經在回升。

So it just depends a lot on how the next few weeks shape up in terms of the order book, particularly in the hobby farm and ranch that from my point of view.

因此，這在很大程度上取決於接下來幾週的訂單情況，特別是在我看來，在業餘愛好農場和牧場方面。

I think something else to keep continue to keep in mind what we tried to save or reduce part of the script because no matter what this division does if they have that fall off as Jeff mentioned the sales and the backlog falls down. Our requirement here is to trying to do everything we can to maintain that 10% operating margin, which is there is there are our goal for this year, no matter what the revenue comes out in this division.

我認為還有其他事情需要繼續牢記我們試圖保存或減少部分腳本的內容，因為無論這個部門做什麼，如果他們的銷量下降，正如傑夫提到的銷售和積壓下降。我們這裡的要求是盡一切努力維持 10% 的營業利潤率，這就是我們今年的目標，無論該部門的收入如何。

No, I appreciate those last comments and I did I did hear that. It's just that I'm what I'm trying to understand what you're sort of doing now, maybe proactively to be able to deliver that because if we're obviously now I'm going to be having on the down --

不，我很欣賞最後的評論，我確實聽到了。只是我正在努力了解你現在在做什麼，也許是主動地能夠實現這一點，因為如果我們現在顯然是這樣的話，我就會陷入困境——

What we're yes, what we're doing in Vegas, what we've been doing for a couple of quarters offer offering retail incentives to our customers to walk into a dealership and buy a piece of equipment, which works pretty well in the ag side of the space. And while I was a little uncertain whether that was going to pay off from the actions we took last year. We did see that bump up in orders in our Bushnell division in the first quarter, and they actually produced a very, very nice first quarter from my point of view at a very historical level of both revenue and profit. So that was positive. We just have to do that now across some of the other brands and see if we can get the same impact, which obviously iconic brand, as you know, we'll make. So it's natural that we would see the biggest uplift. Some of our other brands are probably not going to see it see the same immediate lift in both orders and backlog from those incentives. But that's the tool that we have, right, because we have to clear the channel inventory, you know that and I know that we have to clear that in order to get a better running reorder and a rise in fact, well, and also we mentioned as I mentioned to as well as the labor force.

我們是的，我們在維加斯所做的事情，我們幾個季度以來一直在做的事情，為我們的客戶提供零售激勵措施，讓他們走進經銷店併購買一件設備，這在空間的ag一側。雖然我有點不確定我們去年採取的行動是否會帶來回報。我們確實看到布希內爾部門第一季的訂單增加，從我的角度來看，他們的第一季實際上非常非常好，收入和利潤都達到了歷史水平。所以這是積極的。我們現在只需在其他一些品牌上這樣做，看看我們是否能獲得相同的影響，正如你所知，我們將製造哪個顯然是標誌性的品牌。因此，我們自然會看到最大的提升。我們的其他一些品牌可能不會看到這些激勵措施帶來的訂單和積壓訂單同樣立即增加。但這就是我們擁有的工具，對吧，因為我們必須清理渠道庫存，你知道這一點，我也知道我們必須清理這一點，以便獲得更好的重新訂購和增長，事實上，好吧，而且我們正如我所提到的以及勞動力。

We made reductions to this depletion trends in the labor force because we want to trying to get ahead of this strain a little bit so that that we're allowing ourselves to trying to do everything we can to maintain that 10% if the orders continue to soften.

我們減少了勞動力的枯竭趨勢，因為我們希望稍微領先於這種壓力，這樣，如果訂單繼續增加，我們就可以盡一切努力維持這 10%。

As Jeff reported, we're going to continue to make more and take more actions to make sure that we reduce our costs and control or expenses.

正如傑夫所報導的那樣，我們將繼續生產更多產品並採取更多行動，以確保降低成本和控製或開支。

Understood.

明白了。

Final question for me and going back to the discussion that you had earlier with with Mike on the government exposure that you have. I'm kind of curious as to how you guys are thinking about about funding in that index sector and more broadly. I mean, you know, we've we're coming off a couple of really strong years here. And do you think this is sort of sustainable as we think about '24 and into '25 here in terms of this set of customers continuing continuing to be well funded and continuing to order or should we kind of I don't know, temper our expectations at some point to somebody to some degree.

我的最後一個問題，回到您之前與麥克就您所擁有的政府風險進行的討論。我很好奇你們如何考慮在該指數產業乃至更廣泛的領域進行融資。我的意思是，你知道，我們已經在這裡度過了非常強大的幾年。你認為這是否是可持續的，因為我們考慮到 24 到 25 年，這組客戶繼續擁有充足的資金並繼續訂購，或者我們應該我不知道，調整我們的在某個時刻對某人在某種程度上的期望。

But obviously at some point there's going to be at least two of our expectations, the rollout of a series of very extraordinary circumstances following the pandemic that all of the federal level incentives that have the fleet out there.

但顯然，在某個時候，我們至少會有兩個期望，即在大流行之後出現一系列非常特殊的情況，所有聯邦層面的激勵措施都在那裡。

And before joining this call and before writing my comments in my remarks, I took a pretty deep dive into where governmental finances are right now. And when you look at it, at least in the US, the states are in very, very good shape.

在參加這次電話會議以及在發言中寫下我的評論之前，我深入了解了政府財政目前的狀況。當你觀察時，至少在美國，各州的狀況非常非常好。

There. And a very strong conviction that they're going to continue to invest. I'm quite certain that the municipalities are more mixed. You know, some of the bigger cities are incurred and lots of costs related to reselling immigrants. You know that everything is the same as I do there, unresolved fiscal pressure as a result of that. But remember, most of their funding comes from housing costs, property taxes and housing has not stumbled at all in terms of prices coming down. Now, obviously that's going to sustain municipal incomes at a traditional level for a long time. So I think you will eventually see a paper. I certainly don't see it coming this year. Maybe I think we're in a strong running all through 2024 on the governmental side of our business and the tapering may come in 2025. And you don't find the answer in my head and whether this was going to be a soft landing in our economy or a bit of a stumble. I'd be able to give you a much more clear answer to that. But I see at least another 12 months of really good running on the governmental side.

那裡。並且堅信他們將繼續投資。我很確定這些城市的情況比較複雜。你知道，有些大城市會產生大量與倒賣移民相關的費用。你知道，一切都和我在那裡做的一樣，因此導致了未解決的財政壓力。但請記住，他們的大部分資金來自住房成本、財產稅，而且房屋價格並未因價格下降而下跌。現在，顯然這將在很長一段時間內將市政收入維持在傳統水平。所以我認為你最終會看到一篇論文。我當然不認為今年會出現這種情況。也許我認為我們在政府方面的業務在整個 2024 年都處於強勁運行狀態，而縮減可能會在 2025 年到來。經濟還是有點跌跌撞撞。我可以給你一個更明確的答案。但我預計政府方面至少還會有 12 個月的良好運作。

All right. Thank you for all the color. I know you asked a lot of questions. Appreciate.

好的。謝謝你所有的顏色。我知道你問了很多問題。欣賞。

Thanks, Mig. Appreciate.

謝謝，米格。欣賞。

As a reminder, if you have a question, please press star one. The next question comes from Tim Moore from EFI. Eaton.

提醒一下，如果您有疑問，請按星號一。下一個問題來自 EFI 的 Tim Moore。伊頓。

Please go ahead.

請繼續。

All right. Thanks. I wanted to wish Richard the best in retirement in time with his family dollar who may not have yet. And I'm going to move at a pace, though, is so great and a straight shooter, which is really helpful for seven years. And so maybe we will start with a question for Jeff on industrial equipment. As you look out on this division, then, you know, historically it wasn't too long ago, the operating margin was higher and you've done a great job getting it back to close to that. But what do you think is kind of a realistic operating margin ceiling. If you're looking out to maybe next year without giving formal guidance, if there's no recession, do you think you can do 13.5% op margin next year?

好的。謝謝。我想祝理查德在退休後一切順利，他的家庭資金可能還沒實現。不過，我會以一個非常好的速度前進，而且是一個直率的人，這對七年來說確實很有幫助。因此，也許我們首先要問傑夫一個關於工業設備的問題。當你觀察這個部門時，你知道，從歷史上看，不久前，營業利潤率較高，而且你已經做得很好，讓它回到接近這個水平。但您認為現實的營業利益率上限是多少？如果你在沒有給出正式指導的情況下展望明年，如果沒有經濟衰退，你認為明年的營運利潤率可以達到 13.5% 嗎？

I'll be up.

我會起來的。

Yes, I do Jim competently. Yes, I think that when you look at our most notable competitor name, I won't mention and you also mentioned references to their higher operating margins. If you actually do a side-by-side comparison until the court, we allocate our corporate costs out to our two divisions. As you probably know or most of us, our main competitor. It's not so when you correct for that, we are neck and neck in terms of operating income as a percentage of sales, right, neck-and-neck. So I think we are running very well right now. And I do believe there's further opportunity to expand margins in that group for sure, because there's still some inefficiencies there that will pick up as the volume continues to build from it.

是的，我能勝任吉姆的工作。是的，我認為當你看到我們最著名的競爭對手的名字時，我不會提及，你也提到了他們更高的營業利潤。如果您實際上在法庭之前進行並排比較，我們會將公司成本分配給我們的兩個部門。正如您或我們大多數人可能知道的那樣，我們的主要競爭對手。當你糾正這一點時，情況並非如此，我們在營業收入佔銷售額的百分比方面並駕齊驅，對吧，並駕齊驅。所以我認為我們現在運行得很好。我確實相信該集團肯定還有進一步擴大利潤的機會，因為隨著銷量的繼續增加，那裡仍然存在一些效率低下的問題。

And that's great. Now going from our math myself, but it didn't seem like the ceilings and close to even have now. But I'm that's good news.

那太好了。現在從我們自己的數學出發，但它看起來並不像天花板，甚至接近現在。但我認為這是個好消息。

And then maybe just switching gears, you know, I'm just trying to think through other operating margin drivers. Obviously, the supply chain will hopefully get better in general farming and Harvey and ag will come back and normalize.

然後也許只是換個方向，你知道，我只是想考慮其他營業利潤驅動因素。顯然，一般農業的供應鏈有望變得更好，哈維和農業將回歸並正常化。

But just switching gears to maybe your made in-country efforts here specifically maybe for Europe rather than shipping heavy machinery from the US over there that cost, how is that going? And is that really more focused on forestry, landscaping and Speakers?

但是，只是將齒輪轉向可能是您在國內所做的努力，特別是針對歐洲，而不是從美國將重型機械運送到那裡，那麼成本如何？真的更關注林業、景觀美化和揚聲器嗎？

It's not focused on sweepers, in particular at the moment, is mainly focused on the vegetation management side and mostly in mowing products and to some degree in forestry, as you know, that timber that we produce in the UK under the Timber Wolf brand will have a very nice hub in the U.S. And we're just ramping that up now. So we haven't really seen the benefits of that yet. We will start to see it in the second quarter that come through on the forestry side. So it's going well. But obviously, all the other headwinds in that division are gaining a lot of our attention right now as I'm sure you can understand.

它並不專注於清掃機，特別是目前，主要專注於植被管理方面，主要是割草產品，在某種程度上是林業，如您所知，我們在英國以 Timber Wolf 品牌生產的木材將在美國有一個非常好的中心，我們現在正在加強。所以我們還沒有真正看到它的好處。我們將在第二季開始看到它在林業方面的體現。所以進展順利。但顯然，該部門的所有其他不利因素現在都引起了我們的大量關注，我相信您可以理解。

So that makes sense from that. Not to ask about another distraction, ibrutinib, I'm pretty excited about the rent to own fleet. It seems like just back of the envelope comparing some peers, it seems like you'd have something like a 35% ROI. And I was just wondering, do you think you can add, are there more trucks chassis this year that maybe get the fleet up to 400 maybe by the end of the year?

所以這是有道理的。更不用說另一個幹擾因素，伊布替尼，我對自己車隊的租金感到非常興奮。與一些同行相比，您似乎獲得了 35% 的投資回報率。我只是想知道，你認為你可以補充一下，今年是否有更多的卡車底盤，可能到今年年底，車隊數量可能會達到 400 輛？

It went up of only modestly during the first quarter, we expect that to continue all through the year. I think we were up 17 or 18, something like that in Q1. And we do plan to open a couple of additional rental locations this year. We've got those pretty well, not that know where we're going. So yes, I think we'd be very nice growth in the rail space from Zimmer products during this year.

第一季僅小幅上漲，我們預計這一情況將持續全年。我認為我們領先 17 或 18，就像第一季那樣。我們確實計劃今年再開設幾個租賃地點。我們已經很好地掌握了這些，但不知道我們要去哪裡。所以，是的，我認為今年 Zimmer 產品在鐵路領域的成長將會非常好。

Our expectations tumor to get north of 300 units out there. And I think we close the year roughly 210, 215, 217, something like that.

我們的預期數量將超過 300 台。我認為我們大約會在 210 年、215 年、217 年結束，類似的時間。

I guess it's 300. Yes, that's a that's actually number I was thinking about for now that makes sense. That's a really good opportunity because the airline up and helps customers makes them happy but maybe just switching gears to one other topic. I mean, this is snow removal has been amazing and has a wide wing innovation taking market share. It's pretty clear Like when does that slow down?

我猜是 300。這確實是一個很好的機會，因為航空公司的崛起和幫助客戶讓他們感到高興，但也許只是切換到另一個主題。我的意思是，這是令人驚嘆的除雪，並且具有寬翼創新佔領市場份額。很清楚，例如什麼時候速度會減慢？

I mean, one one does that kind of normalize and you know what I hear.

我的意思是，一個一個都會實現這種正常化，你知道我聽到了什麼。

You know, the outlook from that team is so bullish. I almost said pinch myself when I talk to them, they just see opportunity everywhere. And we struggled in the airport snow removal space for a while, Tim, we just came out of a big show and Buffalo got a very nice reception there. And customers are finally starting to see the strength of our products in that space, which is a huge turnaround from mobile work three or four years ago, our wide Wayne cloud is selling like hotcakes right now. We can't build them fast enough. And so that's really interesting. And we're still getting modest lease awards out of out of contractors.

你知道，那個團隊的前景非常樂觀。當我和他們交談時，我幾乎要掐自己一下，他們到處都看到機會。我們在機場除雪空間裡掙扎了一段時間，蒂姆，我們剛剛結束一場大型演出，布法羅在那裡受到了非常好的接待。客戶終於開始看到我們產品在該領域的實力，這與三、四年前的行動工作相比是一個巨大的轉變，我們廣泛的韋恩雲現在正在熱銷。我們建造它們的速度不夠快。這真的很有趣。我們仍然從承包商那裡獲得了適度的租賃獎勵。

We're also picking up some that really big interest now back in our airport area.

我們現在還在機場區域發現了一些非常有趣的東西。

So orders for different airports right now for snow equipment, which is really good. We had some struggles with that about three or four years ago, made a tremendous amount of improvements in there, and that's now actually showing a lot of interest for us right now.

所以現在就為不同的機場訂購雪具，這真的很好。大約三、四年前，我們在這方面遇到了一些困難，並在那裡做出了巨大的改進，現在實際上對我們表現出了很大的興趣。

I mean, I think I can share one number would share what I can share one number was it, Tim. We believe in fairly short order here, our snow removal segment can be $250 million a year ago. And while that's going on not only, I'll be disappointed if it doesn't get there.

我的意思是，我想我可以分享一個數字，我可以分享一個數字，就是這樣，提姆。我們相信，在相當短的時間內，我們的除雪業務一年前可以達到 2.5 億美元。雖然這不僅在發生，但如果它沒有實現，我會感到失望。

That's phenomenal compared to just three years ago.

與三年前相比，這是驚人的。

That's it's amazing. But just one clarification question. I just want to make sure I understood this from the previous comments for the the high single digit sales growth comment, and that's I know you got the strike clearly impacts you, but what if you factor in kind of the Royal trucking acquisition, it doesn't anniversary until early October, I think it was October 10th or something that seems like that would add 8% to 9% sales growth the quarter by itself. Can I just kind of thinking about this the right way is are you maybe being a little conservative?

這就是了不起。但只有一個澄清問題。我只是想確保我從之前關於高個位數銷售成長評論的評論中理解了這一點，而且我知道罷工顯然對你產生了影響，但是如果你考慮到皇家卡車收購的情況，情況會怎樣？ 直到10 月初才算週年紀念日，我認為是10 月10 日，或者看起來會為本季銷售額增長8% 到9% 的日子。我能否以正確的方式思考這個問題，你可能有點保守嗎？

That is I think you'd be back in.

那就是我認為你會回來的。

I think that's what we're trying to say is probably closer to mid single digit increase without oil in there?

我認為這就是我們想說的，在沒有石油的情況下，增幅可能接近個位數中位數？

Yes, among them without any uncertainty. Again, the uncertainty isn't around industrial of all. It's in vegetation management. We're waiting to kind of see how the orders flow in the second quarter if the orders picked up nicely. And I couldn't be more optimistic about sales growth for the rest of the year. But we still know, as we sit here today, how that's going to play out, we're encouraged to see some positive signs right at the end of the first quarter in terms of how that business developed, but I don't want to confidently say we've turned the corner there yet because I don't believe we have.

是的，其中沒有任何不確定性。再次強調，不確定性並不在於工業領域。這是植被管理。如果訂單回升良好，我們正在等待觀察第二季的訂單流向。我對今年剩餘時間的銷售成長感到非常樂觀。但當我們今天坐在這裡時，我們仍然知道這將如何發展，我們很高興在第一季末看到業務發展方面的一些積極跡象，但我不想自信地說我們已經走出困境，因為我不相信我們已經做到了。

No, that's fair enough. I was just making sure that kind of high single digits, excluding Royal's contribution of 8% to 9% to $50 million a quarter after that really clarifies that.

不，這很公平。我只是想確保這種高個位數，不包括皇家公司每季 8% 到 9% 的貢獻，即 5000 萬美元，這確實澄清了這一點。

Thanks so much and that's it for my questions.

非常感謝，這就是我的問題。

Thanks.

謝謝。

Alan, this concludes our question and answer session. I would like to turn the conference back over to management for closing remarks.

艾倫，我們的問答環節到此結束。我想將會議轉回管理階層進行閉幕致詞。

Thank you very much. Before closing the call today, I would like to express my deep gratitude to our Executive Vice President and Chief Financial Officer, Mr. Richard Worley, who retires today after more than 36 years of service with our company. Richard is an exceptional colleague and a great friend has been extremely instrumental in the positive development of this Company since its earliest days. While I will certainly miss him a lot and wish him a very well deserved long, healthy and happy retirement, and I will miss him very much.

非常感謝。在今天結束通話之前，我謹向我們的執行副總裁兼財務長 Richard Worley 先生表示深深的感謝，他在我們公司工作了 36 年多，於今天退休。理查德是一位傑出的同事和好朋友，自公司成立之初起就為公司的積極發展發揮了巨大的作用。我當然會非常想念他，並祝他有一個當之無愧的長久、健康和幸福的退休生活，我會非常想念他。

Agnes camps will take over the reins as our CFO for today, and will join us on our second quarter 2024 up conference call in August to present our results and to take your questions.

艾格尼絲·坎普斯 (Agnes Camps) 今天將接任我們的首席財務官，並將在 8 月份參加我們的 2024 年第二季度電話會議，介紹我們的業績並回答大家的問題。

So we look forward to that basic get one more time for joining us today, and we look forward to speaking with you on our second quarter conference call in August 2024.

因此，我們期待今天再次獲得這一基本機會加入我們，我們期待在 2024 年 8 月的第二季電話會議上與您交談。

The conference has now concluded and thank you for attending today's presentation. You may now disconnect.

會議現已結束，感謝大家參加今天的演講。您現在可以斷開連線。