Allient Inc (ALNT) 2023 Q4 法說會逐字稿

Good day and welcome to the airline, Inc. fourth quarter fiscal year 2023 financial results conference call.

美好的一天，歡迎參加航空公司 2023 財年第四季財務業績電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Mr. Craig Malik from Investor Relations.

我現在想將會議轉交給投資者關係部門的 Craig Malik 先生。

Please go ahead, sir.

請繼續，先生。

Good morning, everyone.

大家，早安。

On the call are Dick Warzala, our Chairman, President, and CEO, our Chief Financial Officer.

參加電話會議的是我們的董事長、總裁兼執行長、財務長 Dick Warzala。

Mike are going to review our fourth quarter and full year 2023 results and provide an update on the company's strategic progress and outlook.

Mike 將回顧我們第四季和 2023 年全年業績，並提供有關公司策略進展和前景的最新資訊。

We'll open up for Q and AC., the financial results that were released yesterday after the market closed.

我們將開始討論昨天收盤後發布的 Q 和 AC 財務表現。

If not, you can find it at our website at Aliant.com, along with the slides that accompany today's discussion during those slides.

如果沒有，您可以在我們的網站 Aliant.com 上找到它，以及這些幻燈片中伴隨今天討論的幻燈片。

Please turn to slide 2 for the safe harbor statement.

請參閱投影片 2 以了解安全港聲明。

As you are aware, we may make forward-looking statements on this call during the formal discussion as well as during the Q&A apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated on today's call, uncertainties and other factors discussed in the earnings release as well as with other documents filed by the company.

如您所知，我們可能會在正式討論期間以及問答期間就本次電話會議做出前瞻性聲明，這些聲明適用於未來發生的事件，這些事件受到風險和不確定性以及其他可能導致實際結果與實際結果存在重大差異的因素的影響。今天電話會議的內容、收益報告以及公司提交的其他文件中討論的不確定性和其他因素。

These and Exchange Commission documents on our website, sec.gov, as well that during today's call, we will discuss discuss some non-GAAP measures, which we believe will be useful in evaluating our performance.

這些和我們網站 sec.gov 上的交易委員會文件，以及在今天的電話會議中，我們將討論一些非公認會計原則措施，我們相信這些措施將有助於評估我們的表現。

Consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP.

考慮單獨提供此附加資訊或作為根據 GAAP 準備的結果的替代品。

We have provided reconciliations of non-GAAP to GAAP measures, both accompanying the earnings release and slides.

我們提供了非公認會計準則與公認會計準則衡量標準的調節表，兩者都伴隨著收益發布和投影片。

Please turn to slide 3, and I'll turn it over to Dick to begin.

請翻到投影片 3，我將把它交給迪克開始。

Thank you, Greg, and welcome, everyone, for the backdrop of macro uncertainty and other challenges.

謝謝你，格雷格，歡迎大家，在宏觀不確定性和其他挑戰的背景下。

The Elliott team once again delivered on a number of successes during the past year.

Elliott 團隊在過去的一年中再次取得了多項成功。

This included the kickoff of our next stage of growth for the refined strategy that brought on a new corporate name and ticker and included the publishing of our inaugural sustainability report, which highlights our vision for an approach to corporate sustainability.

這包括啟動我們下一階段的細化策略成長，該策略帶來了新的公司名稱和股票代碼，並發布了我們的首份永續發展報告，該報告強調了我們對企業永續發展方法的願景。

We continue to execute our financial strategy with the support of 13% organic growth for the year, which is more than double the industry and key acquisitions, which I will speak to in a moment.

在今年 13% 的有機成長（這是行業的兩倍多）和關鍵收購的支持下，我們繼續執行我們的財務策略，我稍後會談到這一點。

Our top line reached nearly $500 million, reflecting strong demand in industrial markets, largely driven by industrial automation projects and power quality solutions focused on the HVAC and oil and gas end markets.

我們的收入達到近 5 億美元，反映了工業市場的強勁需求，這主要是由專注於 HVAC 和石油和天然氣終端市場的工業自動化項目和電能品質解決方案推動的。

Also contributing to our overall growth was higher sales within aerospace and defense and vehicle markets.

航空航太、國防和汽車市場銷售的增加也促進了我們的整體成長。

On the margin front, we delivered on our expectations with a record annual gross margin of 31.7%, an operating margin of 7.3%, which was up 100 basis points for the year.

在利潤率方面，我們實現了我們的預期，年度毛利率達到創紀錄的 31.7%，營業利潤率為 7.3%，全年增長了 100 個基點。

This translated into stronger earnings.

這轉化為更強勁的收益。

That also led to a record level of cash generation of 45 million that enabled us to reduce our debt while still investing in organic and inorganic initiatives.

這也導致創紀錄的 4500 萬現金產生水平，使我們能夠減少債務，同時仍然投資於有機和無機舉措。

Overall, annual net income per diluted share increased 36% to $1.48 and on an adjusted basis, net income per share was $2.30, up 22% for the year.

整體而言，稀釋後每股年度淨利成長 36%，達到 1.48 美元，調整後每股淨利為 2.30 美元，全年成長 22%。

On slide 4, we've highlighted our recent acquisitions.

在投影片 4 上，我們重點介紹了我們最近的收購。

We reviewed here a motion on our last earnings call as we completed the transaction in September, while it is a relatively small acquisition, it was very strategic from an engineering perspective because it enhances both our application design and development efforts in support of our integrated motion solution strategy and advances our customer facing market strategy as we further expand our reach into our targeted market segments, in early January after the year closed, we brought on S&C manufacturing, which was our first talk with a tuck-in acquisition in support of our power technology pillar.

我們在9 月完成了此次交易，在此審查了上次財報電話會議上的一項動議，雖然這是一項相對較小的收購，但從工程角度來看，它非常具有戰略意義，因為它增強了我們的應用程式設計和開發工作，以支持我們的整合動議隨著我們進一步擴大目標細分市場的影響力，我們引入了S&C 製造公司，這是我們首次就收購進行談判，以支持我們的業務。電力技術支柱。

They are a well established company with locations in the U.S., Mexico and China.

他們是一家成熟的公司，在美國、墨西哥和中國設有分公司。

Their offerings are complementary to our current power quality capabilities as they design and manufacture electromagnetic products for blue-chip customers and Defense Industrial Automation, alternative power generation and energy, which includes electric utilities and renewable energy.

他們的產品是我們目前電能品質能力的補充，因為他們為藍籌客戶和國防工業自動化、替代發電和能源（包括電力公用事業和再生能源）設計和製造電磁產品。

In addition to extending our capabilities in the clean power industry, S. and C. brings much-needed incremental low cost manufacturing capacity and expertise to further grow our power quality business.

除了擴展我們在清潔電力行業的能力之外，S. and C. 還帶來了急需的增量低成本製造能力和專業知識，以進一步發展我們的電能品質業務。

From a financial perspective, S&C adds about $40 million in annual revenue and is expected to be accretive to earnings in year one.

從財務角度來看，S&C 的年收入增加了約 4,000 萬美元，預計第一年的利潤將增加。

While their current margins are less than our stated goals, we are confident that we are well positioned to improve them over time.

雖然他們目前的利潤率低於我們既定的目標，但我們相信，隨著時間的推移，我們有能力提高他們的水平。

In addition, we see several opportunities to leverage the resources within the power pillar and Elliot as a whole and to have a positive impact on sales and profits in the short term as well.

此外，我們還看到了利用權力支柱和整個 Elliot 內部資源的一些機會，並在短期內對銷售和利潤產生積極影響。

We welcome all employees of SNC to Alliance, and we look forward to a continued growth and success together in the future.

我們歡迎SNC全體員工加入Alliance，並期待未來共同持續成長與成功。

With that, let me turn it over to Mike for a more in-depth review of the financial.

接下來，讓我將其轉交給麥克，以對財務進行更深入的審查。

Thank you, Dick.

謝謝你，迪克。

Starting on Slide 5, we highlight our top line for the quarter and full year periods.

從投影片 5 開始，我們將重點放在季度和全年的營收。

Fourth quarter revenue increased 8% from nearly 10 million to 141 million.

第四季營收成長8%，從近1,000萬美元增至1.41億美元。

Excluding the favorable impact of foreign currency exchange rate fluctuations on revenue of $1.6 million, organic growth was approximately 6%.

剔除匯率波動對160萬美元收入的有利影響，有機成長約為6%。

Industrial markets were up 23% in the quarter, benefiting from strong end market demand within Industrial Automation, vehicle handling and power quality solutions fully focused on the oil and gas and HVAC markets within our vehicle markets, our automotive customers began to ramp up their programs as expected.

本季工業市場成長了 23%，受益於工業自動化、車輛處理和電能品質解決方案的強勁終端市場需求，我們的汽車客戶開始加強他們的計劃正如預期的那樣。

This past year, we also saw nice demand for powersports has helped drive the overall vertical up 17% in the quarter.

去年，我們也看到對動力運動的良好需求，推動本季整體垂直成長 17%。

Offsetting some of that growth continued to be lower demand with it within agricultural vehicles, given the softness in Europe, which was largely influenced by the Ukrainian conflict and DI sales were down just given the timing and resulting lumpiness around certain defense and space projects, along with customer-driven supply chain challenges within the vertical medical market declined due to softness in medical mobility, which has largely reflected a reduction in demand that we experienced during the last two years of those products, driven by specific customers Slide 6 provides details regarding our full year performance and shows the change in our revenue mix and the drivers behind each change.

考慮到歐洲的疲軟（很大程度上受到烏克蘭衝突的影響）以及農用車輛需求的下降，部分增長抵消了農用車輛的需求下降，並且考慮到某些國防和航太項目的時機以及由此產生的不穩定，DI 銷售下降了。由於醫療流動性疲軟，垂直醫療市場中的客戶驅動的供應鏈挑戰有所下降，這在很大程度上反映了在特定客戶的推動下，過去兩年我們對這些產品的需求減少。幻燈片6 提供了有關我們的詳細資訊全年業績並顯示我們收入組合的變化以及每次變化背後的驅動因素。

Industrial continues to lead the way it remains.

工業繼續保持其一貫的領先地位。

Our largest market, making up 44% of total 2023 sales.

我們最大的市場，佔 2023 年總銷售額的 44%。

That's an increase of 600 basis points from 2022 to 33% growth in industrial space, driven primarily by the same markets as fourth quarter and reflected continued improvements within the supply chain environment, which supported the shipping of some long lead projects, C&E verticals, better evaluate on an annual basis given program timing.

工業空間成長較2022 年成長600 個基點，達到33%，這主要是由與第四季度相同的市場推動的，反映了供應鏈環境的持續改善，這支持了一些長期項目、會展垂直行業、更好的運輸每年根據給定的計劃時間進行評估。

And for the year, we grew low double digits due to this success in winning new defense projects and the ramping of other programs.

今年，由於成功贏得新的國防項目和其他項目的增加，我們實現了兩位數的低成長。

We also benefited from positive commercial aircraft demand given overall improvements within the industry and vehicle market, revenue was up 2% and reflects same demand drivers as the fourth quarter medical sales were nearly flat as we continued to see a return to a more normalized sales environment focused on surgical and instrumentation related end markets.

鑑於行業和汽車市場的整體改善，我們也受益於商用飛機的積極需求，收入增長了2%，反映了相同的需求驅動因素，因為我們繼續看到銷售環境恢復到更加正常化的狀態，第四季度醫療銷售幾乎持平專注於外科和儀器相關的終端市場。

And lastly, sales to the distribution channel, which are a small portion of total sales were up 6% for the year.

最後，分銷通路的銷售額（僅佔總銷售額的一小部分）今年成長了 6%。

As highlighted on Slide 7, gross margin expanded 40 basis points for the quarter and full year period on higher volume and favorable mix, along with the continued emphasis and usage of our lean toolkit throughout the organization.

正如幻燈片 7 所強調的那樣，由於銷量增加和有利的組合，以及整個組織對精益工具包的持續重視和使用，本季度和全年的毛利率增長了 40 個基點。

These impacts more than offset elevated raw material costs and remaining supply chain inefficiencies.

這些影響足以抵銷原物料成本上升和供應鏈效率低的影響。

Moving to Slide 8 for operating performance, you'll notice that we had a sizable increase in business development costs for the quarter and full year period.

前往投影片 8 了解營運績效，您會注意到我們本季和全年的業務開發成本大幅增加。

These those expenses were in support of the recent acquisitions, an increase for our prior acquisition from the earn-out and some rationalization efforts around our manufacturing footprint to position us to drive stronger operating leverage in the future.

這些費用是為了支持最近的收購、我們先前收購的收益增加以及圍繞我們的製造足跡的一些合理化努力，以使我們能夠在未來推動更強大的營運槓桿。

On an annual basis, we did gain some operating leverage, which drove operating income growth of 34% to $42.3 million or 7.3% of sale, up 100 basis points.

以年度計算，我們確實獲得了一些營運槓桿，這推動營運收入成長 34%，達到 4,230 萬美元，佔銷售額的 7.3%，成長了 100 個基點。

On Slide 9, we present GAAP net income and adjusted net income, which we believe provides a better understanding of our earnings power, inclusive of adjusting for the non-cash amortization of intangible assets, which reflects the Company's strategy to grow through acquisitions as well as organically fourth quarter net income increased 18% to $4.3 million or $0.26 per diluted share and on an adjusted basis was up 31% to $9.1 million or $0.55 per diluted share included in the fourth quarter results is a tax benefit of $0.4 million, which reflected realization of certain NOLs and R&D credits and incentives for the full year net income increased 39% to 24.1 million or 1.48 per diluted share.

在幻燈片9 中，我們展示了GAAP 淨利潤和調整後淨利潤，我們認為這可以更好地了解我們的盈利能力，包括無形資產非現金攤銷的調整，這也反映了公司透過收購實現成長的策略第四季有機淨利潤成長18%，達到430 萬美元，或稀釋後每股0.26 美元，調整後成長31%，達到910 萬美元，或稀釋後每股0.55 美元，第四季業績包含40 萬美元的稅收優惠，這反映了某些 NOL 和研發信貸以及激勵措施的實現使全年淨利潤增長了 39%，達到 2410 萬美元，即稀釋後每股收益 1.48 美元。

On an adjusted basis, annual net income increased 25%, 37.5 million or $2.30 per diluted share.

調整後的年度淨利潤增長了 25%，達到 3750 萬美元，即稀釋後每股收益 2.30 美元。

And the effective tax rate was 18.9% in 2023, which reflected a tax benefit from the fourth quarter due to realization of certain NOLs and R&D credits compared with an effective tax rate of 26.6% during 2022, we expect our income tax rate for the full year 2024 to be approximately 21% to 23%.

2023 年的有效稅率為18.9%，這反映了由於實現某些NOL 和研發抵免而帶來的第四季度的稅收優惠，而2022 年的有效稅率為26.6%，我們預計我們的所得稅率為全額2024 年約為 21% 至 23%。

We use adjusted EBITDA as an internal metric and believe it is useful in determining our progress and operating performance.

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。

Adjusted EBITDA increased 2% to $16.9 million or 12% of revenue for the year.

調整後 EBITDA 成長 2%，達到 1,690 萬美元，佔當年營收的 12%。

Adjusted EBITDA increased 18% to $77.2 million or 13.3% of revenue, which was up 30 basis points.

調整後 EBITDA 成長 18%，達到 7,720 萬美元，佔營收的 13.3%，成長 30 個基點。

Slides 10 and 11 provide an overview of our cash flow and balance sheet we generated 45 million of cash from operations for the year, which represented a record level for the company and a significant increase from the $5.6 million generated during the prior year period.

幻燈片10 和11 概述了我們的現金流和資產負債表，我們本年度從營運中產生了4500 萬美元的現金，這代表了公司的創紀錄水平，比上一年期間產生的560 萬美元有顯著增長。

The increase reflected higher net income and improved working capital management.

這一增長反映了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.

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。

Annual capital expenditures were $11.6 million and largely focused on new customer projects.

年度資本支出為 1,160 萬美元，主要集中在新客戶項目。

We expect 2024 capital expenditures to increase from this level be in the range of 16 to $20 million and inventory turns improved to 3.0 times compared with under three times last year.

我們預計 2024 年資本支出將從這一水準增加到 1,600 至 2,000 萬美元，庫存週轉率將從去年的不到三倍提高到 3.0 倍。

Our DSO was slightly elevated at 56 days for the year, largely reflecting timing and mix of customers.

我們的 DSO 全年略有上升，達到 56 天，主要反映了客戶的時間表和組合。

Total debt was approximately $218 million, down $17.1 million from year end 2022 debt net of cash was about $187 million or 42.6% of net debt to capitalization.

總債務約 2.18 億美元，比 2022 年底減少 1,710 萬美元，扣除現金後的債務約 1.87 億美元，佔淨債務資本化的 42.6%。

Our bank leverage ratio was 2.8 times.

我們的銀行槓桿率為2.8倍。

Lastly, we recently extended the mature maturity of our 280 million revolving credit facility for five 2029.

最後，我們最近將 2.8 億循環信貸額度的到期日延長至 2029 年五年。

Borrowings under the revolving facility will bear interest on a sliding scale rate based on leverage of 1.25% to 2.8% over silver.

循環貸款下的借款將按照白銀 1.25% 至 2.8% 的槓桿率以浮動利率計息。

In addition, Fred flexibility, we entered into a $100 million fixed rate private shelf facility with Prudential.

此外，由於弗雷德的靈活性，我們與保誠集團簽訂了價值 1 億美元的固定利率私人貨架設施。

The notes have a maturity date of no more than 10.5 years after the date of original issuance and may be issued through March 2027.

該票據的到期日自最初發行日起不超過10.5年，可發行至2027年3月。

Currently, there are no borrowings in those agreements with SAP.

目前，與 SAP 的這些協議中沒有借款。

I'll now turn the call back over to Vic.

現在我將把電話轉回給維克。

Thank you, Mike.

謝謝你，麥克。

Slide 12 shows our orders and backlog levels as we have discussed throughout the year.

投影片 12 顯示了我們全年討論的訂單和積壓訂單水準。

The change in backlog reflects the continued improvements within the supply chain environment, which has enabled the shipping of some longer lead industrial market projects.

積壓訂單的變化反映了供應鏈環境的持續改善，這使得一些較長週期的工業市場項目得以運輸。

It led to customer order patterns patterns beginning to return to a pre-COVID-19 environment.

這導致客戶訂單模式開始回到 COVID-19 之前的環境。

There are a number of exciting programs that will play out as we move through 2024.

隨著 2024 年的到來，許多令人興奮的計劃將會上演。

And we are well situated as we realign the organization to support the significant opportunities that we are bidding across our target verticals.

當我們重新調整組織以支持我們在目標垂直領域競標的重大機會時，我們處於有利地位。

The upcoming year will have its challenges, given the changing dynamics of our backlog, which is expected to continue to rightsize for the next few quarters.

鑑於我們積壓的動態不斷變化，預計未來幾季將繼續調整規模，來年將面臨挑戰。

This also presents the opportunity to reduce our working capital requirements and strengthen cash flow.

這也提供了減少我們的營運資金需求和加強現金流的機會。

Turning to slide 13, we are intent upon creating stronger earnings power with our Synplify to accelerate strategy. 2024 is the year to drive out redundant costs, realign the organization to improve focus and efficiencies, rationalize our footprint and ultimately simplify our operating structure by rethinking how we operate.

轉向幻燈片 13，我們致力於透過 Synplify 加速策略創造更強大的獲利能力。 2024 年是消除冗餘成本、重新調整組織以提高重點和效率、合理化我們的足跡並透過重新思考我們的營運方式最終簡化我們的營運結構的一年。

We believe we can accelerate our efforts to achieve top-tier financial performance.

我們相信，我們能夠加快努力，實現一流的財務表現。

While some of the actions will take time to fully execute, there is a strong sense of urgency throughout the organization to deliver on our goals.

雖然有些行動需要時間才能完全執行，但整個組織都有實現我們目標的強烈緊迫感。

Our simplified to accelerate strategy is moving forward by adding the word now to the end and is centered on three high-level strategic initiatives.

我們的簡化加速戰略正在向前推進，在末尾添加“現在”一詞，並以三項高層戰略舉措為中心。

First, realigning and rightsizing our footprint to better align with our markets and customers initiatives began in 2023 and are expected to continue with earnest throughout 2024 and beyond.

首先，重新調整和調整我們的足跡，以更好地適應我們的市場和客戶的舉措始於 2023 年，預計將在 2024 年及以後繼續認真進行。

Reinforcing lean principles throughout the Company to accelerate market margin expansion.

在整個公司範圍內強化精實原則，以加速市場利潤的擴張。

Our AST toolkit is core to the continuing continuous improvement actions required within the company.

我們的 AST 工具包是公司內部所需的持續改善行動的核心。

And as we demonstrated this past year, we expect to continue to employ working capital initiatives and strong financial discipline to drive additional cash generation and delever the balance sheet in 2024.

正如我們去年所展示的那樣，我們預計將在 2024 年繼續採用營運資本計劃和強有力的財務紀律來推動更多現金產生並降低資產負債表槓桿。

Overall, we are excited and confident in our future as we believe we are well positioned to drive our earnings power with our Synplify to accelerate now strategy and create additional value for all of our stakeholders.

總體而言，我們對未來感到興奮和充滿信心，因為我們相信我們已經做好了充分準備，可以透過 Synplify 推動我們的獲利能力，從而加速當前策略並為所有利害關係人創造額外價值。

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) Greg Palm, Craig-Hallum Capital Group.

（操作員說明）Greg Palm，Craig-Hallum Capital Group。

Thanks.

謝謝。

This is Danny acreage on for Greg today.

這是今天格雷格的丹尼土地。

Congrats on the good results guys like you, Danny.

丹尼，祝賀像你這樣的人取得了好成績。

And I think I'd like to just kind of start out by maybe what you're seeing out there right now.

我想我想從你們現在所看到的情況開始。

On any poor day trends.

在任何糟糕的一天趨勢。

Obviously, bookings kind of fell off a little bit in Q4 and you noted some momentum for inventory drawdown.

顯然，第四季度的預訂量略有下降，並且您注意到庫存下降的一些勢頭。

So maybe just what kind of visibility do you have into this, you know, our trends, you don't have any kind of continue to offer those Q4 levels on and maybe how long you think some of those some of those trends should last for things your face of what.

因此，也許您對此有什麼樣的了解，您知道，我們的趨勢，您沒有任何繼續提供第四季度水平的信息，也許您認為其中一些趨勢應該持續多長時間您的臉是什麼東西。

I would say this year that the as we mentioned, we expect that over the next few quarters here we're going to continue to see some adjustments and it's a mixed bag.

我想說，今年，正如我們所提到的，我們預計在接下來的幾個季度中，我們將繼續看到一些調整，這是一個好壞參半的情況。

We while we have seen the hold on shipments or the delay of shipments, so inventories do get balanced properly at our customer level are also starting to see that where it was projected or certain demand to be pushed out, starting to now see some demand increasing and near state.

雖然我們已經看到發貨被擱置或發貨延遲，所以庫存確實在我們的客戶層面得到了適當的平衡，但我們也開始看到預計的或某些需求被推遲，現在開始看到一些需求增加和近狀態。

And then there's a time timeframe.

然後還有一個時間範圍。

So I think it's as I said, it's a mixed bag.

所以我認為正如我所說，這是一個混合體。

We overall believe that the lead time adjustments, the lead times a rate reductions and a better management of inventories throughout the whole supply chain, including our own, are certainly actions that are at the top of our list and as well as our customers.

總體而言，我們相信，交貨時間調整、交貨時間降低以及整個供應鏈（包括我們自己的供應鏈）中庫存的更好管理無疑是我們以及我們的客戶的首要行動。

And at the next few quarters, we'll see some continued adjustment there.

在接下來的幾個季度，我們將看到一些持續的調整。

That's our that's our expectation.

這就是我們的期望。

Got it.

知道了。

That's helpful.

這很有幫助。

Maybe just digging a little bit in more into this simplified to accelerate initiative.

也許只需深入研究這個簡化的過程即可加速計劃。

Any more color you could give there on what it what are you doing?

您可以為您在做什麼提供更多顏色嗎？

Is there headcount reductions as part of that?

其中是否有裁員？

Maybe like a wine now, um, do you think we'll see this in gross margin or OpEx or break that out?

也許就像現在的葡萄酒一樣，嗯，你認為我們會在毛利率或營運支出中看到這一點，還是將其打破？

And I guess any way you can kind of quantify those impacts to the P&L as we move throughout the year?

我想，當我們全年變化時，有什麼方法可以量化這些對損益表的影響嗎？

Yes, sure.

是的，當然。

So I would just as a last statement in my prepared remarks, so we said the simplified to accelerate strategy, which actually started last year.

因此，我想作為我準備好的發言中的最後一個聲明，我們說的是簡化加速戰略，該戰略實際上是在去年開始的。

Our own is gaining momentum within the company.

我們自己的業務在公司內部勢頭強勁。

But we added a very important word to the other that nets now and it's not the future.

但我們在另一個詞上添加了一個非常重要的詞：現在，而不是未來。

It's now, and I can't stress that enough to say that in everything we do.

現在就是這樣，我在我們所做的每一件事中都強調這一點。

And as we start to look at all processes and operations and capacity and within the company, you can see complexity that needs to come out.

當我們開始審視公司內部的所有流程、營運和能力時，您可以看到需要解決的複雜性。

So what I would say to you is that we had defined some activities and some actions that were pre-COVID that we would have undertaken.

所以我要對你們說的是，我們已經定義了在新冠疫情之前我們將採取的一些活動和行動。

But given COVID, those resources were diverted into other directions, simply making sure we can get parts, satisfying customer demand, working overtime, getting a workforce in place and so forth.

但考慮到新冠疫情，這些資源被轉移到其他方向，只是確保我們能夠獲得零件、滿足客戶需求、加班、安排勞動力到位等等。

So I would just say that they have been delayed in the last year globally at our strategy session with our key leadership team, we absolutely said it's time now to get back onto those initiatives and wring some cost out of the out of our operations.

所以我只想說，去年在我們與關鍵領導團隊舉行的策略會議上，這些計劃在全球範圍內被推遲了，我們絕對表示現在是時候重新開始這些計劃並從我們的營運中擠出一些成本了。

So what you mentioned, I would say it's all of the above and nothing is sacred at this point to fail.

所以你提到的，我想說的是以上所有的情況，在這一點上沒有什麼是神聖的失敗。

We did eight acquisitions in a very short period of time, we we know we can do a better job of leveraging the capabilities and the footprint of these acquisitions and bringing teams together.

我們在很短的時間內進行了八次收購，我們知道我們可以更好地利用這些收購的能力和足跡並將團隊聚集在一起。

We've got brands out there that need to be retired.

我們有一些品牌需要退役。

We've got company names that need to be retired as we move forward to the one company in which we live.

當我們轉向我們所居住的一家公司時，我們有一些公司名稱需要退休。

And we launched the Noonday last year with a new ticker and it's purposeful.

我們去年推出了 Noonday 並推出了新的股票，這是有目的的。

I mean, we really have a unique situation with technology and products that we could lever into target verticals.

我的意思是，我們在技術和產品方面確實擁有獨特的情況，我們可以將其用於目標垂直領域。

So we further expansion and acceleration of those activities and a focus on making those those things happen.

因此，我們進一步擴大和加速這些活動，並專注於使這些事情發生。

So that really is a it is an opportunity for us to look at how we're doing business, use our lean tool, Ali toolkit to help us on continuous improvement.

因此，這確實是一個機會，讓我們了解我們如何開展業務，並使用我們的精益工具阿里工具包來幫助我們持續改進。

And as I said, it's now it's not planning for the future.

正如我所說，現在並沒有規劃未來。

We have actions that are planned that we will execute and move forward on and our leadership team is engaged.

我們計劃採取行動並繼續推進，我們的領導團隊也參與其中。

So they will obviously the goal here is to approve, we make commitments to improving margins.

因此，他們的目標顯然是批准我們做出提高利潤率的承諾。

This will absolutely help us achieve those goals.

這絕對會幫助我們實現這些目標。

Yes.

是的。

So I guess that like you kind of said there that, that I guess 100 basis points of annual gross margin improvement kind of target that you have out there on.

所以我想就像您所說的那樣，我想您設定的目標是年度毛利率提高 100 個基點。

Does this does this do initiative work towards that?

這是否會朝著這個方向努力？

Or do you think you can get incremental expansion on top of that with this?

或者您認為您可以在此基礎上實現增量擴展嗎？

Or how should we think about that?

或者說我們該如何思考這個問題？

Yes.

是的。

Well, I think, listen, first off, we it's hard to adjust expectations or statements that have been made it a couple of years ago.

嗯，我想，聽著，首先，我們很難調整幾年前所做的期望或聲明。

We wanted to realize what the expectations are as far as 100 basis points margin improvement, including gross margin with our expectation, 50 basis points for both gross and from the operating expense side of the site let's make sure that that's clear.

我們希望了解利潤率提高 100 個基點的預期，包括我們預期的毛利率，毛利率和網站營運費用方面均提高 50 個基點，讓我們確保這一點是明確的。

Our goal internally is to exceed what we state as public goals.

我們的內在目標是超越我們所說的公共目標。

This is not new in addition to or anything different than when we laid out our expectations for the improvements a few years ago.

與我們幾年前提出改進期望時相比，這並不是什麼新鮮事，也沒有什麼不同。

This is lining right up with what we stated back then.

這與我們當時所說的完全一致。

So if in the while in the process, we see opportunities to do better.

因此，如果在這個過程中，我們看到了做得更好的機會。

We absolutely will, of course, but I think we'll stick with our stated objectives here for the 100 basis points improvement in operating margin with a combination of both gross and operating expense reduction?

當然，我們絕對會這樣做，但我認為我們會堅持我們既定的目標，即營業利潤率提高 100 個基點，同時減少總費用和營業費用？

Yes, one of the things I'll bring it up a little bit.

是的，我會稍微提到其中一件事。

I think, Danny, you even asked the question before is as we did all the acquisitions, you could see revenue line going up, but you also saw the SG. and E. expenses go up along with that, and that is correct.

我認為，丹尼，你之前甚至問過這個問題，當我們進行所有收購時，你可以看到收入線上升，但你也看到了SG。 E. 費用隨之增加，這是正確的。

And at some point I know you have some you have to leverage those increased costs to either grow contract revenues, earnings more or to find ways where you can realize some synergies and that percentage reduction should go down, you should actually see synergies there and start to leverage that.

在某些時候，我知道你必須利用這些增加的成本來增加合約收入、更多收入，或者找到可以實現一些協同效應的方法，並且減少的百分比應該下降，你實際上應該看到那裡的協同效應並開始來利用這一點。

That's helpful.

這很有幫助。

I'll leave it there.

我會把它留在那裡。

Thanks.

謝謝。

Thank you.

謝謝。

Gary Sweeney, ROTH Capital.

加里·斯威尼，羅斯資本。

Mike, thanks for taking my call.

麥克，感謝您接聽我的電話。

Mike, I think this is your last call.

麥克，我想這是你最後一次打電話了。

So congratulations as competitors last call.

恭喜競爭對手最後一次通話。

Welcome on the client area.

歡迎來到客戶專區。

It's Jerry, too, by the way that Gary raised.

順便說一句，傑瑞也是加里撫養長大的。

I know everyone there always hence the worse of it.

我認識那裡的每個人，因此情況更糟。

How come I know we covered the simplified to accelerate.

我怎麼知道我們已經涵蓋了簡化加速。

So I'm going to let that be for now.

所以我現在就這樣吧。

There's some fallout from that later today, but some don't.

今天晚些時候，這會產生一些影響，但有些則不會。

And the just some random questions here.

這裡只是一些隨機問題。

It is obviously lumpy.

很明顯是塊狀的。

You've always talked about that but just curious, I'm looking at that on an annual basis, how much confidence you have say throughout 2024?

您一直在談論這個問題，但只是好奇，我每年都會關注這個問題，您對 2024 年全年有多少信心？

That sounds as though there are some programs that are out there you feel relatively confident that that businesses is well positioned?

聽起來好像有一些計劃，您對這些企業的定位相對有信心嗎？

Yes.

是的。

So absolutely.

絕對是如此。

I think we've mentioned over several conference calls that the quoting activity has been extremely high.

我想我們已經在幾次電話會議中提到報價活動非常高。

That didn't necessarily convert into orders, which was a little bit of a surprise.

這並不一定會轉化為訂單，這有點令人驚訝。

But we have seen that orders now coming in as to our expectation expectations that that or replenishment of certain materials that's needed by the defense markets.

但我們已經看到，現在收到的訂單符合我們的預期，即國防市場所需的某些材料的補充。

So we do have visibility on programs beginning to kick in and starting to accelerate at midyear and through the end of the year.

因此，我們確實可以看到計劃在年中和年底開始啟動並開始加速。

And and some fairly significant programs out into the future.

還有一些相當重要的未來計畫。

So it is beginning to kick in and I will state that it is our first what we would really say is our internally, we call it the Elliott market-specific selling unit, where we want to realize as much value as possible in these in that market.

所以它開始發揮作用，我要說的是，這是我們的第一個，我們真正想說的是我們的內部，我們稱之為埃利奧特市場特定銷售部門，我們希望在這些部門中實現盡可能多的價值市場。

And we are backing it up by putting resources in place and having a strong focus on it.

我們透過投入資源並高度關注來支持它。

And I just mentioned, we just finished up a global leadership meeting here last week and to see the excitement as we bring our team together how much we really do from an independent unit standpoint and how much we can leverage.

我剛才提到，我們上週剛剛在這裡結束了一次全球領導層會議，當我們將我們的團隊聚集在一起時，我們興奮地看到我們從獨立部門的角度真正做了多少事情以及我們可以發揮多少作用。

And when we bring a focus to it and have a central point of sale and contact and support the continued increase in value in a sale that we will see part of that process.

當我們關注它並擁有一個中心銷售點和聯繫點並支持銷售價值的持續成長時，我們將看到這個過程的一部分。

Also, as we talk about to Danny answer, ask the question earlier to some of the initiatives, but I would say specifically, it's in how we process how we handle orders.

另外，當我們談論丹尼的回答時，請先向一些舉措提出問題，但我要具體說，這是我們如何處理訂單的方式。

We have the acquisitions that we've done.

我們已經完成了收購。

We have different computer systems and the transactional costs are quite high because of the way it's being handled.

我們有不同的電腦系統，由於處理方式的原因，交易成本相當高。

And our whole goal is to simplify and to make one transaction drive it all the way through the system, have it happen automatically and to realign the revenues and profits into the right units who are contributing.

我們的整體目標是簡化並讓一筆交易在整個系統中驅動它，讓它自動發生，並將收入和利潤重新調整到做出貢獻的正確單位。

Sounds simple, sounds trivial, but as the organization has grown one of the things I wanted to be very cautious about when you hear this many times is big companies become cumbersome and they don't want to do business with their sister companies.

聽起來很簡單，聽起來微不足道，但隨著組織的發展，當你多次聽到這句話時，我想要非常謹慎的一件事是大公司變得麻煩，他們不想與姐妹公司做生意。

We have to make sure that we do things differently and we prevent that from occurring and we could see it creeping in.

我們必須確保我們以不同的方式做事，並防止這種情況發生，我們可以看到它悄悄蔓延。

And we think we've got a pretty good solution.

我們認為我們已經有了一個非常好的解決方案。

And in the process, we're going to have a much better focus and we're going to drive cost out as well as aligning more from a system sale.

在此過程中，我們將有更好的重點，我們將降低成本，並從系統銷售中進行更多調整。

So we think there's a lot of positives there that this will be moving forward this year.

因此，我們認為今年會有很多積極的進展。

And it is a strong focus and it's based upon the demand that we're actually seeing in the market.

這是一個強烈的關注點，它基於我們在市場上實際看到的需求。

Just as an add-on to that, Jerry, my prepared remarks, I mentioned some supply chain inefficiencies within A. and D. of yes, there are suppliers who are customers that are holding up relief, if you will, of our products because they can be there.

作為補充，傑瑞，我準備好的發言，我提到了A. 和D 中的一些供應鏈效率低下的情況。是的，有些供應商是客戶，如果你願意的話，他們會推遲我們產品的救濟，因為他們可以在那裡。

And if they're not in a position to produce at full capacity and obviously they're holding off on delivery of our products and they can marry them together for a full for a full system.

如果他們無法滿載生產，並且顯然他們推遲了我們產品的交付，他們可以將它們結合在一起形成一個完整的系統。

So we are being impacted by that.

所以我們正在受到影響。

We are excited about the programs that we previously discussed, like I said, some of that is being held a little hostage to certain supply chain constraints within that vertical.

我們對之前討論的計劃感到興奮，就像我說的，其中一些計劃受到垂直領域內某些供應鏈限制的影響。

Patrick, I'll take it a half a step back of John back to you with the simplified to accelerate.

派崔克，我將約翰退後半步，用簡化的加速方式回到你身上。

It sounded as though there is an opportunity not just for cost savings but or will say wallet share and have a larger solution into a customer and getting some of the acquired businesses to for lack of better term interact the mothership percent, right.

聽起來好像不僅有機會節省成本，而且可以說錢包共享並向客戶提供更大的解決方案，並讓一些被收購的企業與母公司百分比互動（由於缺乏更好的術語），對吧。

Is that an absolute fair assessment?

這是絕對公正的評價嗎？

Absolutely.

絕對地。

And again, just use examples of in our business.

再次強調，僅使用我們業務中的範例。

One of the primary objectives, if you want to win in this business is to be first to market with a solution or to the customer with a solution.

如果您想在這項業務中獲勝，主要目標之一就是先向市場推出解決方案或向客戶提供解決方案。

It a complex system does nothing but drag down and delay the process of getting to the customer with a solution.

它是一個複雜的系統，除了拖慢和延遲向客戶提供解決方案的過程之外，什麼也沒做。

So in addition to adding efficiencies, looking at increased value in the sale.

因此，除了提高效率之外，還要考慮增加銷售價值。

It looking at more efficient solutions for the customer at a larger scale.

它為更大規模的客戶尋找更有效的解決方案。

It is shortening the time to market from the time to make contact, but at the time that we present a solution to we want to be first, we need to be first being first, you will increase the top line.

它縮短了從接觸到上市的時間，但是當我們提出解決方案時，我們想要成為第一，我們需要成為第一，你會增加收入。

Got it.

知道了。

That makes sense.

這就說得通了。

That's voice, I'm acquisitions, right.

那是聲音，我是收購，對吧。

Do you slow down acquisitions at this point?

此時您會放慢收購速度嗎？

Is this sort of like, hey, I've made eight acquisitions in the last couple of years.

是不是有點像，嘿，我在過去幾年裡進行了八次收購。

Yes, holding I answer yes, we think we need to do more work on making sure that everything that we've acquired is functioning and performing as expected.

是的，如果我回答是，我們認為我們需要做更多的工作來確保我們所獲得的一切都按預期運行和執行。

We have the most recent acquisition at SNC., we are very excited about that.

我們最近對 SNC 進行了收購，對此我們感到非常興奮。

I mean the off of the synergies that we see already and the opportunities there to leverage, they just happened to see the IPCIR. company up in Germantown, Wisconsin and SNC and Oshkosh are very close.

我的意思是，我們已經看到了協同效應以及可以利用的機會，他們只是碰巧看到了 IPCIR。公司位於威斯康辛州日耳曼敦，與 SNC 和奧什科甚非常接近。

They're complementary.

它們是互補的。

They're working extremely well as a team right now and are starting to leverage resources already for both organizations, which is very exciting times in all.

他們現在作為一個團隊工作得非常好，並開始利用兩個組織已有的資源，這是非常令人興奮的時刻。

And I do think that to the emphasis needs to be on that, not we're still grooming.

我確實認為重點需要放在這一點上，而不是我們仍在修飾。

And if the opportunities may for stuff that we can't look the other way we'll still pursue.

如果機會是我們無法忽視的東西，我們仍然會追求。

But it's really more of an emphasis to answer your question on making sure we're making what we have work better.

但實際上更重要的是回答您的問題，以確保我們使我們現有的東西更好地發揮作用。

Got it.

知道了。

So we're sort of the quintessential.

所以我們是典型的。

You make some acquisitions, take a step back, optimize, drive cash flow that's going to start coming.

你進行一些收購，後退一步，優化，推動即將開始出現的現金流。

Then in the background, there's still some acquisition opportunities, but don't reaccelerate as you exactly.

然後在後台，仍然有一些收購機會，但不要像你那樣重新加速。

Okay.

好的。

That's it for me.

對我來說就是這樣。

I know we have a follow-up later, so I appreciate it.

我知道我們稍後會有後續行動，所以我很感激。

Thank you, Greg, and thanks, Jerry again, again, if you have a question, please press star then one.

謝謝你，格雷格，再次感謝傑瑞，如果你有問題，請先按星號，然後再按一個。

This concludes our question and answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to management for any closing remarks.

我想將會議轉交管理層發表閉幕詞。

Please go ahead.

請繼續。

Thank you, everyone, for joining us on today's call and your continued interest in LEO.

感謝大家參加今天的電話會議以及對 LEO 的持續關注。

We will be participating in the ROTH Conference on March 18th in Dana Point, California.

我們將參加 3 月 18 日在加州達納角舉行的羅斯會議。

Otherwise, as always, please feel free to reach out to us at any time.

否則，一如既往，請隨時與我們聯繫。

And we look forward to talking with all of you again after our first quarter 2024 results.

我們期待在 2024 年第一季業績公佈後再次與大家交談。

Thank you for your participation, and have a great day at upcoming conferences.

感謝您的參與，祝您在即將舉行的會議上度過愉快的一天。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。