Allient Inc (ALNT) 2023 Q3 法說會逐字稿

Good morning, and welcome to the Allient Inc. Third Quarter Fiscal Year 2023 Financial Results Conference Call. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Allient Inc. 2023 財年第三季財務業績電話會議。 （操作員說明）今天的演示結束後，將有機會提問。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Craig Mychajluk, Investor Relations.

我現在想將會議交給投資者關係部門的 Craig Mychajluk。

Yes. Thank you, and good morning, everyone. We certainly appreciate your time today as well as your interest in Allient Inc. Joining me on the call are Dick Warzala, our Chairman, President and CEO; and Mike Leach, our Chief Financial Officer. Dick and Mike are going to review our third quarter 2023 results and provide an update on the company's strategic progress and outlook, after which we'll open up for Q&A. You should have a copy of the financial results that were released yesterday after the market closed. If not, you can find it on our website at allient.com, along with the slides that accompany today's discussion.

是的。謝謝大家，大家早安。我們當然感謝您今天抽出時間以及您對 Allient Inc. 的興趣。與我一起參加電話會議的有我們的董事長、總裁兼首席執行官迪克·瓦爾扎拉 (Dick Warzala)；和我們的財務長邁克·利奇。迪克和麥克將回顧我們 2023 年第三季度的業績，並提供有關公司戰略進展和前景的最新信息，之後我們將進行問答。您應該擁有一份昨天收盤後發布的財務業績副本。如果沒有，您可以在我們的網站 allient.com 上找到它，以及今天討論中附帶的幻燈片。

If you are reviewing those slides, please turn to Slide 2 for the safe harbor statement. As you are aware, we may make forward-looking statements on this call during the formal discussion as well as during the Q&A. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially than what is stated on today's call. These risks, uncertainties and other factors are discussed in the earnings release as well as other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at scc.gov.

如果您正在查看這些投影片，請前往投影片 2 以取得安全港聲明。如您所知，我們可能會在正式討論和問答期間就本次電話會議做出前瞻性陳述。這些聲明適用於受風險和不確定性以及其他因素影響的未來事件，這些因素可能導致實際結果與今天電話會議中所述的結果有重大差異。這些風險、不確定性和其他因素在收益報告以及公司向美國證券交易委員會提交的其他文件中進行了討論。您可以在我們的網站或 scc.gov 上找到這些文件。

I want to point out as well that during today's call, we will discuss some non-GAAP measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP to comparable GAAP measures in the tables accompanying the earnings release and slides. With that, please turn to Slide 3, and I'll turn it over to Dick to begin. Dick?

我還想指出，在今天的電話會議中，我們將討論一些非公認會計準則衡量標準，我們相信這些衡量標準將有助於評估我們的績效。您不應孤立地考慮此附加資訊的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。我們在收益發布和幻燈片隨附的表格中提供了非公認會計原則與可比較公認會計原則衡量標準的調節表。接下來，請翻到投影片 3，我將把它交給迪克開始。迪克？

Thank you, Craig, and welcome, everyone. Before we jump into the quarter results, I just wanted to remind everyone that we had our inaugural Investor and Analyst Day at the end of August, where we highlighted our expanded available markets and how we plan to leverage our proven process to ensure we achieve our future goals and objectives. Please visit our Investor Relations website where you can view a replay of the event or the transcript.

謝謝你，克雷格，歡迎大家。在我們進入季度業績之前，我只是想提醒大家，我們在八月底舉行了首屆投資者和分析師日，其中我們強調了我們擴大的可用市場以及我們計劃如何利用我們經過驗證的流程來確保我們實現我們的目標未來的目標和目標。請造訪我們的投資者關係網站，您可以在其中查看活動重播或文字記錄。

Now on to the quarter. We continue to execute our strategy and delivered solid top line results, record gross margin and robust cash generation that enabled us to reduce our debt and make an acquisition during the quarter. Once again, our industrial markets led the way with 32% sales growth over last year's third quarter, largely driven by industrial automation projects and power quality solutions focused on the HVAC. And oil and gas end markets also contributed to our industrial sales growth with continued improvements within the supply chain environment, which supported the shipping of some long lead projects. Our other 3 targeted valuables saw a contraction during the quarter. Those numbers don't tell the whole story as there are a number of positive elements within each.

現在進入本季。我們繼續執行我們的策略，並實現了穩健的營收業績、創紀錄的毛利率和強勁的現金生成能力，使我們能夠在本季度減少債務並進行收購。我們的工業市場再次處於領先地位，銷售額比去年第三季度增長了 32%，這主要是由工業自動化項目和專注於 HVAC 的電能品質解決方案推動的。石油和天然氣終端市場也為我們的工業銷售成長做出了貢獻，供應鏈環境持續改善，支持了一些長週期項目的運輸。我們的其他 3 個目標貴重物品在本季度出現了收縮。這些數字並不能說明全部情況，因為每個數字都包含許多正面因素。

Aerospace and defense sales reflected program timing, largely within the space industry during the quarter. On the defense side, we have experienced a high level of quoting and activity over the last few quarters, and we secured a large defense order, which is reflected in our third quarter orders. I will talk about our orders and backlog later in the presentation. Within our vehicle markets, our automotive customers are ramping up as expected this year, although the growth was more than offset by lower demand within agricultural vehicles given the softness in Europe, largely influenced by the Ukrainian conflict.

航空航太和國防銷售反映了專案時機，主要是本季航太工業領域的專案。在國防方面，過去幾季我們經歷了高水準的報價和活動，並且我們獲得了大量國防訂單，這反映在我們第三季的訂單中。我將在稍後的演示中討論我們的訂單和積壓訂單。在我們的汽車市場中，我們的汽車客戶今年的成長符合預期，儘管成長被農用車需求下降所抵消，因為歐洲經濟疲軟，主要受到烏克蘭衝突的影響。

Lastly, medical sales were nearly flat as we continue to see a return to a more normalized sales environment focused on surgical and instrumentation-related end markets. We did experience softness in medical mobility, which largely reflects a reduction in the demand that we experienced during the last few years for those products.

最後，醫療銷售幾乎持平，因為我們繼續看到以外科和器械相關終端市場為重點的更正常化的銷售環境的回歸。我們確實經歷了醫療流動性的疲軟，這在很大程度上反映了過去幾年我們對這些產品的需求減少。

Driving higher margins continues to be a focus, and we saw a nice expansion of our gross margin during the quarter. The 32.7% gross margin rate does set a new high watermark for Allient and largely reflects the favorable mix from the end markets I just highlighted. On the operating performance, you will notice we had a jump in business development costs of about $1 million year-over-year. Those expenses were in support of the recent acquisition and some limited operations rationalization to position us and drive stronger operating leverage in the future. Overall, we delivered net income per share of $0.41. And on an adjusted basis, net income per share was $0.61. On a year-to-date basis, we generated significant cash from operations of more than $27 million as we have seen modestly improved inventory turns. We did utilize some of that cash to reduce our debt balance by more than $11 million and to acquire Sierramotion at the end of the quarter.

提高利潤率仍然是我們關注的焦點，我們在本季看到了毛利率的良好擴張。 32.7%的毛利率確實為Allient設定了新的高水位，很大程度上反映了我剛才強調的終端市場的有利組合。在經營績效方面，您會注意到我們的業務開發成本比去年同期增加了約 100 萬美元。這些費用是為了支持最近的收購和一些有限的營運合理化，以幫助我們定位並在未來推動更強的營運槓桿。總體而言，我們實現了每股淨利潤 0.41 美元。調整後每股淨利為 0.61 美元。今年迄今為止，我們從營運中獲得了超過 2700 萬美元的大量現金，因為我們看到庫存週轉率略有改善。我們確實利用其中的部分現金將債務餘額減少了超過 1,100 萬美元，並在本季末收購了 Sierramotion。

While Sierramotion is a relatively small acquisition, it is very strategic and enhances both our application design and development efforts and our customer-facing market strategy. Sierramotion excels at providing rapid product development, prototyping and low-volume production to improve speed of play for customers.

雖然 Sierramotion 是一項相對較小的收購，但它具有很強的戰略意義，增強了我們的應用程式設計和開發工作以及面向客戶的市場策略。 Sierramotion 擅長提供快速產品開發、原型設計和小批量生產，以提高客戶的遊戲速度。

We further believe we can leverage their team's skills and capabilities to advance our integrated motion solutions strategy and to expand our reach into our targeted end markets. We also see the potential to enhance their capabilities by leveraging the Allient global manufacturing footprint in order to provide larger-scale production capabilities for Sierramotion customers.

我們進一步相信，我們可以利用他們團隊的技能和能力來推進我們的整合式運動解決方案策略，並將我們的業務範圍擴大到我們的目標終端市場。我們也看到了透過利用 Allient 全球製造足跡來增強其能力的潛力，以便為 Sierramotion 客戶提供更大規模的生產能力。

Looking ahead, we still see exciting opportunities as we expand our presence in targeted market verticals, launch innovative solutions and further streamline our business for greater efficiency. With that, let me turn it over to Mike for a more in-depth review of the financials.

展望未來，隨著我們擴大在目標垂直市場的影響力、推出創新解決方案並進一步簡化業務以提高效率，我們仍然看到令人興奮的機會。接下來，讓我把它交給麥克，讓他對財務狀況進行更深入的審查。

Thank you, Dick. Starting on Slide 4, we provide some details regarding our top line. Third quarter revenue increased 8% or $10.9 million to $145.3 million. The favorable impact of exchange rate fluctuations on revenue was $1.8 million in the quarter. Excluding FX, organic revenue growth was 7%. The growth rates for our 4 targeted markets are noted on the slide, and Dick reviewed the permanent changes within each. The acquisition of Sierramotion did not have a material impact on sales during the third quarter.

謝謝你，迪克。從幻燈片 4 開始，我們提供了有關我們頂線的一些詳細資訊。第三季營收成長 8%，即 1,090 萬美元，達到 1.453 億美元。匯率波動對本季營收的有利影響為 180 萬美元。不計外匯，有機收入成長率為 7%。幻燈片上註明了我們 4 個目標市場的成長率，迪克回顧了每個市場中的永久變化。收購 Sierramotion 並未對第三季的銷售額產生重大影響。

Slide 5 shows the change in our revenue mix by market on a trailing 12-month basis and the drivers behind the change. Industrial continues to be strong and remains our largest market, making up 43% of total TTM sales. That's an increase of 500 basis points since the comparable period in 2022. The 38% growth in the industrial space was driven by the same market as the current quarter. Defense program timing contributed to substantial growth and performance in A&D and the 200-basis point increase in share for the TTM period.

幻燈片 5 顯示了我們過去 12 個月按市場劃分的收入組合的變化以及變化背後的驅動因素。工業持續強勁，仍然是我們最大的市場，佔 TTM 總銷售額的 43%。這比 2022 年同期成長了 500 個基點。工業領域 38% 的成長是由與本季相同的市場所推動的。國防計畫的時機促進了 A&D 的大幅成長和業績，以及 TTM 期間份額的 200 個基點成長。

Medical growth has benefited from a more normalized sales environment and vehicle market revenue was comparable on a trailing 12-month basis as commercial automotive and power sports demand offset weaker agricultural demand.

醫療成長受益於更正常化的銷售環境，並且由於商用汽車和動力運動需求抵消了農業需求的疲軟，過去 12 個月的汽車市場收入相當。

As highlighted on Slide 6, our third quarter gross margin was 32.7%, up 50 basis points from the prior year period. Higher volume and favorable mix more than offset elevated raw material costs. Consistent with our stated objectives, you can see the progress we are making by executing our strategy and the annualized churn.

正如投影片 6 所強調的，我們第三季的毛利率為 32.7%，比去年同期成長 50 個基點。更高的銷售量和有利的組合足以抵消原材料成本的上漲。與我們既定的目標一致，您可以看到我們透過執行策略和年度流失率所取得的進展。

Moving on to Slide 7. We delivered third quarter operating income of $11.9 million or 8.2% of sales, which was down 50 basis points. Operating costs and expenses as a percent of revenue were 24.5%, up 100 basis points, of which 70 basis points was attributable to higher business development costs in the quarter as we continue to rationalize our manufacturing footprint and execute our M&A strategy. On Slide 8, we present GAAP net income and adjusted net income, along with our adjusted EBITDA results. Our net income and diluted EPS have been adjusted for certain items, which we believe provides a better understanding of our earnings power, inclusive of adjusting for the noncash amortization of intangible assets, which reflects the company's strategy to grow through acquisitions as well as organically.

轉到投影片 7。我們第三季的營業收入為 1,190 萬美元，佔銷售額的 8.2%，下降了 50 個基點。營運成本和費用佔收入的百分比為 24.5%，上升 100 個基點，其中 70 個基點歸因於本季度業務開發成本的增加，因為我們繼續合理化我們的製造足跡並執行我們的併購策略。在投影片 8 中，我們展示了 GAAP 淨利潤和調整後淨利潤，以及調整後 EBITDA 結果。我們的淨利潤和稀釋每股收益已針對某些項目進行了調整，我們認為這可以更好地了解我們的盈利能力，包括對無形資產的非現金攤銷進行調整，這反映了公司通過收購和有機成長的策略。

Net income increased 1% to $6.7 million or $0.41 per diluted share, and on an adjusted basis, was up 3% to $10 million or $0.61 per diluted share. The effective tax rate was 23% in the quarter, and we adjusted our expected income tax rate for the full year 2023, down slightly to be approximately 23% to 25%. Adjusted EBITDA increased 5% to $20.8 million or 14.3% of revenue. We use adjusted EBITDA as an internal metric and believe it is useful in determining our progress and operating performance.

淨利潤成長 1%，達到 670 萬美元，即稀釋後每股收益 0.41 美元，調整後淨利成長 3%，達到 1,000 萬美元，即稀釋後每股收益 0.61 美元。本季有效稅率為23%，我們調整了2023年全年的預期所得稅稅率，小幅下調至約23%至25%。調整後 EBITDA 成長 5%，達到 2,080 萬美元，佔營收的 14.3%。我們使用調整後的 EBITDA 作為內部指標，並相信它有助於確定我們的進度和經營績效。

Slides 9 and 10 provide an overview of our balance sheet and cash flow. As a reminder, in the first quarter, we made a $6.25 million deferred cash payment for our prior acquisition, which was reflected during the company's position at the end of the third quarter. Total debt was approximately $224 million, down $11.1 million from year-end 2022. Debt net of cash was about $201 million or 48.1% of net debt to capitalization. Our bank leverage ratio was 2.9x. We generated $27.1 million of cash from operations year-to-date, a significant increase in cash usage during the prior year period. The increase reflects higher net income and improved working capital management.

投影片 9 和 10 概述了我們的資產負債表和現金流。提醒一下，在第一季度，我們為先前的收購支付了 625 萬美元的遞延現金付款，這反映在公司第三季末的部位。總債務約 2.24 億美元，比 2022 年底減少 1,110 萬美元。扣除現金的債務約 2.01 億美元，佔淨債務資本化率的 48.1%。我們的銀行槓桿率為2.9倍。年初至今，我們從營運中產生了 2,710 萬美元的現金，比去年同期的現金使用量大幅增加。這一增長反映出淨利潤的增加和營運資本管理的改善。

Based on our cash flow projections, we expect to continue to drive strong cash flows consistent with historical trends. Year-to-date capital expenditures were $7.9 million and were largely focused on new customer projects. Due to project timing and supply chain impacts, we adjusted our 2023 CapEx expectations to now range between $12 million and $15 million, down from $16 million to $20 million. Inventory churns improved to 3.1x in the third quarter compared with only 3x last year, and our DSO was at 57 days, largely reflecting timing and mix of customers.

根據我們的現金流預測，我們預計將繼續推動與歷史趨勢一致的強勁現金流。年初至今的資本支出為 790 萬美元，主要集中在新客戶項目。由於專案時間表和供應鏈影響，我們將 2023 年資本支出預期從 1,600 萬美元至 2,000 萬美元下調至 1,200 萬美元至 1,500 萬美元之間。第三季庫存流失率改善至 3.1 倍，而去年僅為 3 倍，我們的 DSO 為 57 天，這在很大程度上反映了客戶的時間表和組合。

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

這樣，我現在將把電話轉回給迪克。

Thank you, Mike. Slide 11 shows our orders and backlog levels. Third quarter orders of approximately $155 million resulted in a book-to-bill ratio of 1.1x and a backlog of nearly $310 million. Order levels were up 23% year-over-year and 13% sequentially, largely due to a $31 million defense market order received during the quarter. This order was from an existing program and is expected to convert to sales over the next 2 years, with shipments beginning early next year. Our backlog increased 4% from the sequential second quarter of 2023, reflecting defense order and strong demand for power quality solutions, partially offset by continued improvements from the supply chain environment. This has enabled the shipping of some long lead projects as customer order patterns returned to a pre-COVID-19 environment. As a result, we do expect our backlog to decline in the near term as our book-to-bill ratio drops below 1. The time to convert the majority of backlog to sales is within the next 9 months.

謝謝你，麥克。投影片 11 顯示了我們的訂單和積壓訂單水準。第三季訂單約 1.55 億美元，訂單出貨比達 1.1 倍，積壓訂單接近 3.1 億美元。訂單水準年增 23%，季增 13%，這主要歸功於本季收到的 3,100 萬美元的國防市場訂單。該訂單來自現有計劃，預計將在未來兩年內轉化為銷售，並於明年初開始出貨。我們的積壓訂單較 2023 年第二季環比增加了 4%，反映出國防訂單和對電能品質解決方案的強勁需求，但供應鏈環境的持續改善部分抵消了這一需求。隨著客戶訂單模式恢復到 COVID-19 之前的環境，這使得一些長期項目的交付成為可能。因此，我們確實預計，隨著訂單出貨比降至 1 以下，我們的積壓訂單將在短期內下降。將大部分積壓訂單轉化為銷售的時間是在未來 9 個月內。

Turning to Slide 12. We expect our business for the remainder of the year to reflect a pre-COVID-19 environment and be consistent directionally with our fourth quarter results from prior years. This means there is a higher likelihood of seasonality for holiday shutdowns and customers managing their own inventory levels at year-end.

轉向投影片 12。我們預計今年剩餘時間的業務將反映 COVID-19 之前的環境，並與往年第四季的業績保持一致。這意味著假期關閉和客戶在年底管理自己的庫存水準的季節性可能性更大。

Demand is expected to continue at relatively strong levels within our industrial markets and to benefit from our increased market presence around industrial automation, material handling and power quality solutions. Our other targeted markets are expected to exhibit puts and takes from the end markets similar to this past quarter. Driving cash conversion and paying down debt is a priority, and we will continue to focus on this area as we round out this year and move into 2024. Our debt reduction efforts are expected to support our planned M&A activities, which is a key element of our overall growth strategy. As always, we are actively growing potential opportunities and building out our M&A pipeline.

預計我們的工業市場需求將繼續保持在相對強勁的水平，並將受益於我們在工業自動化、物料搬運和電能品質解決方案方面不斷擴大的市場份額。我們的其他目標市場預計將表現出與上個季度類似的終端市場的看跌期權和賣出期權。推動現金轉換和償還債務是當務之急，我們將在今年結束並進入 2024 年時繼續關注這一領域。我們的債務削減工作預計將支持我們計劃的併購活動，這是我們的併購活動的關鍵要素我們的整體成長策略。一如既往，我們正在積極增加潛在機會並建立我們的併購管道。

The increase in global unrest, we're all experiencing has the potential to present additional challenges in our day-to-day operations, but we are confident that the Allient team has the experience and dedication to navigate through these uncertainties while still remaining focused on executing our long-term strategy. Overall, we are excited and confident in our future, and we believe we are well positioned to create additional value for all of our stakeholders.

我們都經歷過的全球動盪的加劇有可能為我們的日常營運帶來額外的挑戰，但我們相信 Allient 團隊擁有豐富的經驗和奉獻精神來應對這些不確定性，同時仍然專注於執行我們的長期策略。總的來說，我們對未來感到興奮和充滿信心，我們相信我們有能力為所有利害關係人創造額外價值。

Lastly, for those that didn't get a chance to see our Investor Day presentation, the image on the left is what we call the House of Valley. It is a refined structure that layers on a strong vertical market focus on top of our key technology pillars of motion, controls and power. This is the basis of how we plan to accelerate our future success.

最後，對於那些沒有機會觀看我們的投資者日演示的人，左邊的圖片就是我們所說的 House of Valley。這是一個精緻的結構，以強大的垂直市場為重點，以我們的運動、控制和動力等關鍵技術支柱為基礎。這是我們計劃如何加速未來成功的基礎。

With that, operator, let's open the line for questions.

那麼，接線員，讓我們打開提問線路。

(Operator Instructions) Our first question today is from Greg Palm with Craig-Hallum Capital Group.

（操作員說明）我們今天的第一個問題來自 Craig-Hallum Capital Group 的 Greg Palm。

Maybe just starting with the outlook. Early November, normally, you don't have great visibility in year-end inventory management shutdowns, et cetera, but sort of directionally guided for kind of that decent sized seasonality versus Q3. So I'm just kind of curious, is that kind of what your visibility levels are, your confidence around that? Is that kind of what you're hearing from customers? Or is it more on the basis of, look, it's a pretty uncertain macro environment out there or you're just wanting to add maybe an extra level of conservatism in there?

也許只是從前景開始。通常，11 月初，您對年終庫存管理關閉等情況沒有太大的了解，但與第三季度相比，對相當規模的季節性有一定的指導。所以我只是有點好奇，這就是你的可見度水平，你對此的信心嗎？您從客戶那裡聽到的也是這樣嗎？或者它更多是基於，看，這是一個相當不確定的宏觀環境，或者你只是想在那裡添加額外的保守主義水平？

Well, that's a lot of stuff that we added there. I think as we know and maybe for our shareholders that have been here over several years. The reason why we highlighted pre-COVID 19 environment is that we have in prior years, gone through the seasonality and the fourth quarter would reflect that. And many times, the fourth quarter was a crapshoot because especially some of our larger customers would conserve cash and hold shipments until after the first of the year and so forth. And so that comes into play, and we really don't know what that impact is and how much that's going to affect us into literally late in December. With regard to our visibility, we see what we would call a normal pre-COVID 19 environment with some seasonality, okay? So we are going to be cautious, and we're going to say that we cannot anticipate what might happen later in December. But given what we have in our backlog today and so forth, we do see some of that seasonality coming into play. And let's just call it the normal environment that we've operated in prior years.

嗯，我們在那裡添加了很多東西。我認為據我們所知，也許對於我們已經在這裡待了幾年的股東來說。我們之所以強調 COVID 19 之前的環境，是因為我們在前幾年經歷了季節性，第四季將反映出這一點。很多時候，第四季度都是一次冒險，因為特別是我們的一些大客戶會保留現金並保留發貨，直到今年第一季之後，等等。因此，這開始發揮作用，我們真的不知道這種影響是什麼，也不知道到 12 月下旬這會對我們產生多大的影響。就我們的可見性而言，我們看到的是我們所說的正常的 COVID 19 之前的環境，具有一定的季節性，好嗎？所以我們會保持謹慎，我們會說我們無法預測 12 月晚些時候會發生什麼。但考慮到我們今天的積壓情況等，我們確實看到一些季節性因素正在發揮作用。我們就將其稱為我們前幾年營運的正常環境。

That makes a lot of sense. And in terms of the quarter itself, one of the highlights was gross margin. And I know you talked about mix, but I'm hoping you can go into a little bit more detail around it. Because if we look at mix by end market in Q3, it doesn't differ a whole lot versus what the mix by end market was in either Q1 or Q2, but under a slightly lower level of revenue, you still improve gross margins quite a bit by either of those quarters. So maybe just help us understand a little bit of that thought out there.

這很有意義。就本季本身而言，亮點之一是毛利率。我知道你談到了混合，但我希望你能更詳細地討論它。因為如果我們看第三季的終端市場組合，它與第一季或第二季的終端市場組合併沒有太大差異，但在營收水準略低的情況下，毛利率仍然會提高相當多被這兩個季度中的任何一個所影響。所以也許只是幫助我們理解一些想法。

Mike, do you want to answer, and I'll add it to it.

麥克，你想回答嗎，我會加到其中。

Sure. Well, currently, I think we've spoken before that within our 4 market verticals, right? There's niche markets, and I would say margins can differentiate significantly. Within Industrial, I think we've highlighted in the past areas like automation, oil and gas, HVAC, and those are that we enjoy some premium margins that I think have been strong, but were particularly strong in Q3. And then from an A&D perspective too, again, there's differentiation between what markets we sell into within A&D, whether it's space or defense.

當然。嗯，目前，我想我們之前已經在 4 個垂直市場中討論過了，對吧？有利基市場，我想說利潤率可以顯著差異化。在工業領域，我認為我們在過去的自動化、石油和天然氣、暖通空調等領域強調了我們享有一些溢價利潤，我認為這些溢價利潤一直很強勁，但在第三季度尤其強勁。然後，從 A&D 的角度來看，我們在 A&D 中銷售的市場之間也存在差異，無論是太空還是國防。

And as we've been highlighting the beginning more defense orders as of recently, and we've had an uptick in shipments. And I think we've done a good job to protecting ourselves from a pricing standpoint. Been opportunistic with some of those orders as well that have helped with margins as well. But from a general perspective, right, we continue to drive from the strategy, margin improvement and whether that's for rationalization or driving cost out from a global supply chain approach or the like. I would say, there's underlying current of those activities behind the mix as well.

正如我們一直強調的那樣，最近開始有更多的國防訂單，而且我們的發貨量有所增加。我認為，從定價的角度來看，我們在保護自己方面做得很好。對其中一些訂單也採取了機會主義態度，這也有助於提高利潤。但從整體角度來看，我們繼續從策略、利潤率改善以及全球供應鏈方法中的合理化或降低成本等方面推動。我想說，這些活動背後也有潛在的趨勢。

Yes. And I think, Greg, it really says it all is that we have a wide variety of customers and a wide range of end markets. And certainly, the solution set that we offer. Mike talked about premium pricing, I'll mention say it's more of a pricing that reflects the markets and the end applications that we're working on. And well, if we look into that, it so happens that in those markets that we've seen accelerated shipments over prior quarters or prior years, those do happen to be -- provide some enhanced margins versus some of the other product lines that we would have shipped in the past. But again, it's a continued process that we're working through. And we talked about delays in getting price increases through and so forth and the impact of those. And some of that came into play as well. But it is primarily the reflection of the shipments and the mix that we did have in the quarter and our emphasis on some of those markets that we've had in the past, even in acquisitions and investing in current operations.

是的。我認為，格雷格，這確實說明了我們擁有各種各樣的客戶和廣泛的終端市場。當然，還有我們提供的解決方案集。麥克談到了溢價定價，我會提到這更多的是反映市場和我們正在開發的最終應用程式的定價。好吧，如果我們調查一下，就會發現，在那些我們看到前幾季或前幾年出貨量加速的市場中，這些市場確實比我們的其他一些產品線提供了一些更高的利潤。過去會出貨的。但同樣，這是我們正在經歷的一個持續的過程。我們討論了價格上漲的延遲以及這些影響。其中一些也發揮了作用。但這主要反映了我們在本季的出貨量和組合，以及我們對過去擁有的一些市場的重視，甚至在收購和投資當前業務方面也是如此。

The next question is from Ted Jackson with Northland Securities.

下一個問題來自 Northland Securities 的 Ted Jackson。

So just Greg had actually on some of the things I really wanted to drill into, but I'll ask a few ones around it. So let's just start with CapEx. So you've taken CapEx down. If I think about CapEx for $24 million. I mean, would we be thinking that you would go back to kind of your sort of more like the $16 million to $20 million-ish range? Or are you going to kind of on a go-forward basis, keep it a little closer to the trunk of the tree, if you would, with regards to some of your expenditures?

所以格雷格實際上已經了解了我真正想深入研究的一些事情，但我會問一些相關的問題。讓我們從資本支出開始。所以你已經降低資本支出了。如果我考慮資本支出為 2400 萬美元。我的意思是，我們會認為您會回到 1600 萬美元到 2000 萬美元左右的範圍嗎？或者，如果您願意的話，您是否打算在前進的基礎上，將其保留在離樹幹更近的地方，以考慮您的某些支出？

And that would be my expectation, Ted. I think, again, as highlighted, right? I mean, the reason we didn't hit what we originally projected, I would say, is driven by customer patterns and behaviors in terms of driving projects, projects that haven't gone away, but just in terms of customers' engineering resource availability to drive some of those things. And then supply chain, right? It's just harder to get some of the material capital equipment, and it just tends to slow across the term as well. So it's a combination of the 2. I think the environment continues to get better. As I said, these projects are still in line to take off here in the future, and there'll be capital needs to support those projects that we expect will just push somewhat into 2024, but still be in line with that range you described. That's kind of the target internal target to manage our CapEx spend that range that you might reference.

這就是我的期望，泰德。我想，正如強調的那樣，對吧？我的意思是，我們沒有達到最初預期的原因，我想說，是由客戶模式和行為驅動的，這些模式和行為還沒有消失，但只是在客戶的工程資源可用性方面來驅動其中一些東西。然後是供應鏈，對嗎？只是要取得一些物質資本設備變得更加困難，而且在整個期限內它也往往會放緩。所以這是兩者的結合。我認為環境會繼續變得更好。正如我所說，這些項目未來仍有望起飛，並且需要資金來支持這些項目，我們預計這些項目將稍微推遲到 2024 年，但仍符合您所描述的範圍。這是管理我們的資本支出支出範圍（您可能會參考）的內部目標。

Again, and I'll add to that said. Mike give you directionally where we should be. And I will say to you that there's a real emphasis internally on looking at the return on investment and some of the opportunities that we have internally. So there's been some caution, but we do see that there's significant opportunities to continue to reinvest in our operations and with a stronger focus on ensuring that the investments we are making are in the high-value programs and encouraging and actually -- so I would have stand here and told you that I would expect our CapEx investments to maybe be slightly down next year. But I will also say that we are seeing some real opportunities internally to enhance our operating performance, and those require some investments. So we're absolutely encouraging that.

再說一次，我會補充一下。麥克給你指示我們應該去的地方。我要對你們說的是，內部非常重視投資回報和我們內部擁有的一些機會。因此，我們有一些謹慎的態度，但我們確實看到，有很大的機會繼續對我們的業務進行再投資，並更加註重確保我們正在進行的投資是在高價值項目上，並且實際上是令人鼓舞的——所以我會我站在這裡告訴大家，我預計明年我們的資本支出投資可能會略有下降。但我還要說，我們在內部看到了一些真正的機會來提高我們的經營業績，而這些機會需要一些投資。所以我們絕對鼓勵這樣做。

The slight change being that as we continue to grow as a company and refine our systems and processes, we really are looking at funding those opportunities that provide the best return. We should have always done that, but I'm talking about it from a carpet standpoint. There's a certain amount of discretionary CapEx up to a certain level in each of our units. But then when you get to the corporate level, when the investments become larger, our focus and emphasis is we line those up to not really the high-value return and not necessarily for really long-term projects, but more where we can convert it much more quickly.

細微的變化是，隨著我們作為一家公司不斷發展並完善我們的系統和流程，我們確實正在考慮為那些提供最佳回報的機會提供資金。我們本來就應該這樣做，但我是從地毯的角度來談論它的。我們的每個單位都有一定數量的可自由支配資本支出，達到一定水準。但是，當你到達公司層面，當投資變得更大時，我們的重點和重點是我們將這些投資歸結為不是真正的高價值回報，也不一定是真正的長期項目，而是更多我們可以將其轉換的地方更快。

Kind of just sort of a macro question, maybe around industrial. I mean, Rockwell reported this morning, I haven't gone through the release stocks down. So clearly, there was some happiness with something that came out of those numbers. And then they clearly, Rockwell, most of the bigger kind of integrators like that, Rockwell and Emerson and such. I wouldn't say that the last quarters for them were home runs either. I mean we're definitely in an area, and you're highlighting it yourself, Dick, that people are -- I mean every company I listen to everything I pay attention to, everyone's cautious with regards to 2024. But if I think about, say, like a Rockwell and Emerson of companies like that, is it fair for me to infer from kind of their commentary that it's part and the same in terms of kind of what's impacting their business is headwinds for you as well, and it's a fair inference that you -- I guess what I'm saying is that you're kind of, for better or for worse, you're tied to them? Like how do I think about that in terms of a relationship between those companies like that and Allient?

這只是一個宏觀問題，可能與工業有關。我的意思是，羅克韋爾今天早上報道說，我還沒有經歷過釋放股票下跌的情況。很明顯，這些數字帶來了一些快樂。然後他們顯然，羅克韋爾，大多數像羅克韋爾和艾默生這樣的大型整合商。我也不會說他們最後一個季度是全壘打。我的意思是，我們肯定處於一個領域，迪克，你自己強調了這一點，我的意思是，我聽取了我關注的所有公司的意見，每個人都對2024 年持謹慎態度。但如果我考慮一下，比如說，就像羅克韋爾和艾默生這樣的公司一樣，我從他們的評論中推斷出，就影響他們業務的因素而言，這對你來說也是逆風，這對我來說是公平的嗎？公平地推斷，你——我想我想說的是，無論好壞，你都與他們有聯繫？就像我如何看待這類公司與 Allient 之間的關係？

Well, first off, a conscious effort that we made many years ago was to diversify our business. And we think that diversification has served us well so that I'd love to see the day when everything is firing on full cylinders here, and we're seeing everything growing and expanding in a very positive manner, but that's not the reality. We always see that there is -- while we see certain of our markets that are growing and expanding and exhibiting certain successes and even go back to coma. I mean, our medical markets and some of the instrumentation that we provided, we saw consistency that many other companies didn't. While you saw others that were really heavily focused on that grow fast, but they dropped just this fast.

首先，我們多年前有意識地努力實現業務多元化。我們認為多元化對我們很有幫助，所以我很高興看到這裡一切都全速運轉的那一天，我們看到一切都以非常積極的方式增長和擴張，但這不是現實。我們總是看到這種情況——雖然我們看到某些市場正在成長和擴大，並且取得了一定的成功，甚至又陷入昏迷。我的意思是，我們的醫療市場和我們提供的一些儀器，我們看到了許多其他公司沒有的一致性。雖然你看到其他真正專注於這一點的人成長得很快，但他們的下降速度也這麼快。

So I think we take great pride in our efforts to diversify our business and to minimize the impact of anyone. We've set our goal, if we could set a goal here for the 4 key markets we identified all being 25% each year, we'd be very happy. So that's 25% each maybe over a long term may occur, but we still have additional investments to make in some of those markets to increase our share. while not necessarily decreasing our top line in the other markets, but growing the business in order to achieve that. So yes, as our major customers feel impacts, I mean, we will certainly feel it as well. But I will say to you that it's because of our diversification that we feel more confident that we can ride through some of these downturns in any one individual market.

因此，我認為我們為業務多元化和盡量減少任何人的影響所做的努力感到非常自豪。我們已經設定了目標，如果我們能夠為我們確定的 4 個關鍵市場設定每年 25% 的目標，我們會非常高興。因此，從長遠來看，每個市場的份額可能會達到 25%，但我們仍然需要在其中一些市場進行額外投資，以增加我們的份額。雖然不一定會減少我們在其他市場的營收，但會透過發展業務來實現這一目標。所以，是的，當我們的主要客戶感受到影響時，我的意思是，我們肯定也會感受到它。但我要對你們說的是，正是由於我們的多元化，我們才更有信心能夠度過任何一個單獨市場的一些低迷時期。

I agree with all of that. Sticking on kind of individual market things and just going over to the vehicle market, you had an important customer in that area, and they're clearly facing their own macro headwinds. They also, though, are seeing -- they have had a bunch of new product launches as well and kind of given the give and take that kind of the aggregate market and kind of the sports vehicle market, if you would, is weak, but here's a new product going out there. How do we think about that vertical as it relates to Allient?

我同意所有這些。堅持個別市場的事情，然後轉向汽車市場，你在該領域有一個重要的客戶，他們顯然面臨著自己的宏觀阻力。不過，他們也看到——他們也推出了一系列新產品，考慮到整體市場和運動型汽車市場（如果你願意的話）的給予和接受，是疲軟的，但是這是一種新產品即將上市。我們如何看待與 Allient 相關的垂直領域？

I think from the standpoint of looking at that particular market, we have to mention that when we talk about sports utility vehicles and so forth, much of that is used in the industrial marketplace or in commercial applications. So there's the consumer side of it, and then there's the business side, let's call it. So I do think, depending on the sentiments that you might see some downturn in consumers, the larger share of that business for us is really driven around the commercial and industrial end uses. So I would tell you that, yes, we don't see any significant impact there. We see pretty stable year-over-year. And that's maybe for a couple of reasons, continue to expand our reach into that market, to expand our customer base, as well as the emphasis to focus more on the commercial or industrial product versus the consumer product. So that's another one.

我認為，從看待特定市場的角度來看，我們必須提到，當我們談論運動型多用途車等時，其中大部分用於工業市場或商業應用。因此，有消費者方面，然後是業務方面，我們稱之為業務方面。因此，我確實認為，根據消費者可能會看到的一些低迷的情緒，我們的大部分業務實際上是圍繞著商業和工業最終用途驅動的。所以我想告訴你，是的，我們沒有看到任何重大影響。我們看到同比相當穩定。這可能有幾個原因，繼續擴大我們在該市場的影響力，擴大我們的客戶群，並強調更多關注商業或工業產品而不是消費品。這是另一件事。

Of course, we can be impacted by it. We will be impacted by it. We're not driving the demand in the end market. But is the diversification of our business and the impact that it could have today versus let's go back 10 years ago, it's a much smaller percentage of our business today than it was back then. And to answer some part of your question specifically, I mean we have been and continue to be active participants on new product launches with those customers.

當然，我們也會受到它的影響。我們將會受到它的影響。我們沒有推動終端市場的需求。但是，我們業務的多元化及其今天可能產生的影響與 10 年前相比，它在我們業務中所佔的比例比當時要小得多。為了具體回答你問題的一部分，我的意思是我們一直並將繼續積極參與與這些客戶一起發布新產品。

I got 2 more for you, and they're a lot more fun. One is you have this new defense win, and congratulations on that. And I think a lot of investors have wondered if you're going to see some pickup in activity within aerospace and defense with all the conflicts going on in the world. And just to the extent that you can, I mean, I guess, could you provide a little more color in terms of the application that drove that win? And then are you seeing further pick up strengthening in terms of activity projects within that vertical that could prove to provide some growth or strength as we think about kind of the coming quarters or year?

我還給你準備了 2 個，它們更有趣。一是你取得了新的防守勝利，祝賀你。我認為很多投資者都想知道，隨著世界上發生的所有衝突，航空航太和國防領域的活動是否會回升。在您可以的範圍內，我的意思是，我想，您能否在推動這一勝利的應用程式方面提供更多的色彩？然後，您是否看到該垂直領域內的活動項目進一步加強，當我們考慮未來幾季或一年時，這些項目可能會提供一些成長或實力？

Sure. So first off, we'll talk about in the coming quarters and year and sit there and say that we mentioned increased quoting and activity. And part of that increased quoting and activity, not just the quantity of those, but the volumes that we're seeing. That win was in editions, okay? So munitions are being consumed at a pretty high rate, and we are on many of those programs. So we fully expect that this will continue with other programs. I mean they're being consumed and they need to be replenished. Yes, there were stockpiles, which surprised us is how big the stockpiles have been and been able to reach in with the stockpile, but they do have to be replenished. So from a munition standpoint, we are designed into many applications, and we fully expect that over the coming quarters and year, we'll see some increased activity in some orders that need to get replenished. What we are hearing as well is the -- what's perhaps delaying some of those orders is not because of our ability to deliver. We're faster than other suppliers can be for the end product.

當然。首先，我們將討論未來幾季和一年的情況，並坐在那裡說我們提到了報價和活動的增加。其中一部分是報價和活動的增加，不僅是這些數量的增加，還有我們所看到的數量。那次勝利是在版本中的，好嗎？因此，彈藥的消耗率相當高，我們正在參與其中的許多計劃。因此，我們完全期望其他計劃也能繼續這樣做。我的意思是它們正在被消耗，需要補充。是的，有庫存，令我們驚訝的是庫存有多大並且能夠達到庫存，但它們確實需要補充。因此，從彈藥的角度來看，我們被設計成許多應用程序，我們完全預計在未來幾個季度和一年中，我們將看到一些需要補充的訂單活動有所增加。我們也聽到的是——其中一些訂單的延遲可能並不是因為我們的交付能力。我們的最終產品速度比其他供應商更快。

So what's delaying some of this is the inability for the other suppliers of other content to provide their products and the solution. So as that catches up, and we will see. We fully expect to see that the demand will continue to increase and the volumes will increase. And these are long-term programs that we've been designing for years. It's not a matter of if it's a matter of when. On the other side, let's call it the other side of the defense business. And some of the trends that are occurring there that are longer term, but we do see some acceleration and we think we're very well positioned. We acquired FPH in Canada. Their key core technology is composite lightweighting products and technologies as well as the ability to do application engineering and assembly of electromechanical systems. So the combination of electromechanical systems with lightweighting technologies is especially now driven towards the electrification of the vehicles, and we've become a major element of that. We're well positioned. And we're seeing some activity there.

因此，造成延遲的原因是其他內容的其他供應商無法提供他們的產品和解決方案。因此，當它趕上時，我們將會看到。我們完全預期需求將持續增加，數量也會增加。這些是我們多年來設計的長期計劃。這不是是否的問題，而是何時的問題。另一方面，我們稱之為國防業務的另一面。那裡正在發生的一些趨勢是長期的，但我們確實看到了一些加速，我們認為我們處於非常有利的位置。我們收購了加拿大的 FPH。他們的關鍵核心技術是複合材料輕量化產品和技術以及機電系統應用工程和組裝能力。因此，機電系統與輕量化技術的結合現在特別是朝著車輛電氣化的方向發展，而我們已經成為其中的一個主要元素。我們處於有利位置。我們在那裡看到了一些活動。

We're seeing programs that, quite frankly, we're moving along at a snail's pace, which is not unusual for those programs starting to accelerate. So we might see some short-term activity, but longer term, we believe we are very well positioned to capture a decent share of that market. And it's one of those markets where we're strongly emphasizing and investing in internally, and we do see some excellent long-term growth there as well.

坦白說，我們看到一些專案進展緩慢，這對於那些開始加速的專案來說並不罕見。因此，我們可能會看到一些短期活動，但從長遠來看，我們相信我們完全有能力佔領該市場的相當份額。這是我們在內部大力強調和投資的市場之一，我們也確實看到了那裡的一些出色的長期成長。

So we're uniquely positioned as a company to provide not only the composite lightweighting and structural side of it. This is where we focus and emphasize as well as the electromagnetic and mechanical solutions as well as all the other technologies that Allient could bring to bear. And this is one of the areas where I highlighted at the house of Allient and said, here's our key technology pillars and motion controls and power.

因此，我們作為一家公司擁有獨特的定位，不僅提供複合材料輕量化和結構方面的服務。這是我們關注和強調的領域，也是電磁和機械解決方案以及 Allient 可以運用的所有其他技術的地方。這是我在 Allient 工廠強調的領域之一，並表示，這是我們的關鍵技術支柱、運動控制和動力。

And we talked about the further emphasis of certain verticals and bringing the power of Allient to that market, and that's one of them. So I would tell you that I would fully expect that we're going to see a ramp-up in munitions side of the business, and we're also going to see a slower but very strong growth opportunities into the future here longer term beyond the one year in the electrification of ground-based defense vehicles.

我們討論了進一步強調某些垂直領域並將 Allient 的力量帶入該市場，這就是其中之一。因此，我想告訴你，我完全預計我們將看到軍火業務方面的成長，並且我們還將看到未來較慢但非常強勁的成長機會地面防禦車輛電氣化的一年。

Well, I'm going to plug your Investor Day because -- and I can tell you're very enthusiastic about the composites and the electrification because you were just as enthusiastic in New York. So I will look forward to seeing what happens within that business because you're clearly are fired up about it. My last question is just, and again, fun and more simple. It's just talking about the M&A pipeline. Congratulations on the acquisition. I know it's a very important part of the growth for the company and obviously, a key driver of getting to your long-term growth goal of $1 billion in sales. What's the environment like with regard to the M&A front? I mean can you give some color around the pipeline, around kind of what you're seeing with valuations? I mean the competition with regards to other competitors or PE, given what's happening with cost of capital, basically just kind of paint me in broad brush strokes, a picture of what you're seeing and kind of how we should think about the opportunities for you to execute on something in the next, say, 12 to 18 months.

好吧，我要參加你們的投資者日活動，因為——我可以告訴你們，你們對複合材料和電氣化非常熱衷，因為你們在紐約也同樣熱衷。因此，我將期待看到該業務中會發生什麼，因為您顯然對此感到興奮。我的最後一個問題同樣有趣而且更簡單。這只是在談論併購管道。恭喜您成功收購。我知道這是公司成長的一個非常重要的部分，顯然也是實現 10 億美元銷售額的長期成長目標的關鍵驅動力。併購方面的環境如何？我的意思是，您能否就您在估值中看到的管道以及您所看到的情況提供一些顏色？我的意思是與其他競爭對手或私募股權公司的競爭，考慮到資本成本的情況，基本上只是用粗略的筆觸描繪了我，描繪了你所看到的情況以及我們應該如何考慮機會的圖片你要在接下來的12 到18 個月內執行某件事。

Sure. M&A is an ongoing process for us. And I mean, of course, we have a balancing act here to play from a understanding the capital markets and how we're going to fund these and what we're going to do. We had a big flurry in the recent past, and we brought out tremendous amounts of technology here that we have not fully leveraged yet and we're working on leveraging. So I will say to you that we are very focused on certain opportunities.

當然。併購對我們來說是一個持續的過程。我的意思是，當然，我們需要採取平衡措施，了解資本市場以及我們將如何為這些市場提供資金以及我們將要做什麼。最近我們經歷了一場大混亂，我們在這裡推出了大量尚未充分利用的技術，我們正在努力利用這些技術。所以我要對你們說，我們非常關注某些機會。

We are building longer-term relations for other opportunities, and we are very selective in that process. But it's ongoing, and we fully plan to continue to manage our business in those areas from an M&A standpoint, consistent with what we did in the past. We're not going to overpay. We're going to pay a fair price. It's going to have to be additive in certain areas. And we do take a long-term view on some of the acquisitions that they don't necessarily come out of the chutes delivery, firing on all cylinders. But getting them aligned within the company, taking advantage of the talent that we're bringing on board, as well as looking at the new end markets and opportunities that we have for continued growth.

我們正在為其他機會建立長期關係，並且我們在這個過程中非常有選擇性。但它仍在繼續，我們完全計劃繼續從併購的角度管理我們在這些領域的業務，與我們過去的做法保持一致。我們不會多付錢。我們將支付一個公平的價格。它必須在某些領域有所補充。我們確實對一些收購抱持著長遠的看法，它們不一定是全速運轉的。但要讓他們在公司內部保持一致，利用我們引進的人才，並尋找新的終端市場和我們持續成長的機會。

So I would say to you, that's where our emphasis and focus has been in the recent past. We also said to you that looking at the Investor Day and really highlighting out Allient and the change to Allient and the 3 pillars is that, it does expand our opportunity to look at true value-added strategic acquisitions and areas beyond motion. And so we do believe we have several viable opportunities here that all have to come into the balance. So understanding where we are in the capital markets, understand where the environment we're in, and understanding the impact it can have on the future growth and success of the company. And we will continue to do that.

所以我想對你們說，這就是我們最近的重點和重點。我們也對您說，回顧投資者日，真正強調 Allient 以及 Allient 和 3 個支柱的變化是，它確實擴大了我們專注於真正增值策略收購和超越行動領域的機會。因此，我們確實相信我們在這裡有幾個可行的機會，所有這些機會都必須達到平衡。因此，了解我們在資本市場中的地位，了解我們所處的環境，並了解它對公司未來成長和成功的影響。我們將繼續這樣做。

We mentioned if we acquired something in the past, we acquired a company that said, "Hey, don't expect much from this, but the long-term impact, so this is very strategic and very strong. And without going into details, it absolutely turns out to be the case and positions us extremely well in key markets where the necessary investment was there, but did not prove to benefit the bottom line much at that time. So it's active. We continue to grow. We continue to grow. We have a team in place. And the beauty of that is just like the team growing everywhere else is it's a set of developments, set of relationships and the expanded team can build to help us in that area. I mean, it's powerful.

我們提到，如果我們過去收購了一些東西，我們收購了一家公司，它說：「嘿，不要對此抱有太多期望，而是長期影響，所以這是非常戰略性的，非常強大。並且沒有詳細說明，事實證明確實如此，我們在關鍵市場中處於非常有利的位置，那裡有必要的投資，但當時並沒有證明對利潤有多大好處。所以它很活躍。我們繼續增長。我們繼續增長.我們有一個團隊。它的美妙之處就像在其他地方成長的團隊一樣，它是一系列的開發，一系列的關係，並且擴大的團隊可以建立來幫助我們在該領域。我的意思是，它很強大。

You mentioned our most recent acquisition of Sierramotion. So just for our shareholders understanding, we happen to take our Board meetings out into our facilities, not just sit in the corporate office each quarter and meet their -- but we'd like to take and our board likes to visit our facilities. And we took the opportunity to visit. We have an expanded facility in Towson, which is really state-of-the-art and represents and reflects the positive growth that we've seen in Tulsa and prepares us for future growth opportunities as well. So our new acquisition, Sierramotion, we had the management team come in at the same time, get a chance to meet the Board, get a chance to spend time with the team in Tulsa, which is where there is a really significant opportunity and the synergies that we see between the 2 of them. But we mentioned Sierramotion and the front-end ability to really respond and react quickly on project developments and program developments. But also, they've taken up another level from a systems integration, which we've been talking about for many years, your system solutions.

您提到了我們最近收購的 Sierramotion。因此，為了讓我們的股東理解，我們碰巧將董事會會議帶到了我們的設施中，而不僅僅是每個季度坐在公司辦公室裡與他們會面，但我們願意參加，而且我們的董事會也喜歡參觀我們的設施。我們也藉此機會參觀了。我們在陶森擴建了工廠，這確實是最先進的，代表並反映了我們在塔爾薩看到的積極增長，也為我們迎接未來的成長機會做好了準備。因此，我們新收購的 Sierramotion，我們讓管理團隊同時加入，有機會與董事會會面，有機會與塔爾薩的團隊共度時光，那裡有一個非常重要的機會，而且我們看到它們兩者之間的協同作用。但我們提到了 Sierramotion 以及對專案開發和程式開發真正響應和快速反應的前端能力。而且，它們還提升了系統整合的另一個層次，即我們多年來一直在談論的系統解決方案。

So to bring those 2 teams together, to see the excitement of each of them recognizing the quality of what the other brings in terms of their product designs, their technology, production capabilities, their ability to get to the market quickly, their experience levels and to let our board see that and say, hey, when we talk about making investments and setting the stage for the future, the excitement that comes with that. So our acquisitions, Sierramotion is something we've been talking to the key leadership for a couple of years here now, and we both just kept saying that there is such a great fit, and it gives us an opportunity to leverage the strength of both to really grow this business. So we will continue in M&A. We are very excited about the M&A that has happened, and we're very excited about leveraging some of the skills and the strengths of the teams that are coming together here to help us continue to execute the strategy in the future. So hopefully, that gave you some color and tell you that, yes, we're in the market. All right.

因此，將這兩個團隊聚集在一起，看到他們每個人都興奮地認識到對方在產品設計、技術、生產能力、快速進入市場的能力、經驗水平和讓我們的董事會看到這一點並說，嘿，當我們談論進行投資並為未來奠定基礎時，隨之而來的興奮。因此，我們收購 Sierramotion 是我們幾年來一直在這裡與關鍵領導層討論的事情，我們都一直說這是一個非常合適的選擇，它給了我們一個機會來利用雙方的優勢真正發展這項業務。所以我們會繼續進行併購。我們對已經發生的併購感到非常興奮，並且非常高興能夠利用聚集在這裡的團隊的一些技能和優勢來幫助我們在未來繼續執行該策略。希望這能為您帶來一些啟發，並告訴您，是的，我們已經進入市場了。好的。

(Operator Instructions) Showing no further questions, this concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

（操作員說明）沒有顯示更多問題，我們的問答環節就此結束。我想將會議轉交管理層發表閉幕詞。

Well, thank you, everyone, for joining us on today's call and for your interest in Allient. We will be participating in 2 upcoming conferences. The Baird Global Industrial Conference on November 9 in Chicago, and then the ROTH Technology Conference on November 15 in New York City. As always, please feel free to reach out to us at any time, and we look forward to talking with all of you again after our fourth quarter 2023 results. Thank you for your participation, and have a great day.

好的，謝謝大家參加今天的電話會議以及對 Allient 的興趣。我們將參加 2 場即將舉行的會議。貝爾德全球工業大會於 11 月 9 日在芝加哥舉行，隨後羅斯科技大會於 11 月 15 日在紐約舉行。像往常一樣，請隨時與我們聯繫，我們期待在 2023 年第四季業績公佈後再次與大家交談。感謝您的參與，祝您有美好的一天。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。