Allient Inc (ALNT) 2024 Q2 法說會逐字稿

Greetings and welcome to the Allient Inc. second quarter fiscal year 2024 financial results conference call.

歡迎參加 Allient Inc. 2024 財年第二季財務績效電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Deborah Pawlowski of Investor Relations for Allient.

現在我想將會議交給主持人 Allient 投資者關係部的黛博拉·帕夫洛夫斯基 (Deborah Pawlowski)。

Please go ahead.

請繼續。

Thank you, Joe, and good morning, everyone.

謝謝你，喬，大家早安。

We certainly appreciate your time today as well as your interest in Alliance.

我們非常感謝您今天抽出時間以及您對 Alliance 的興趣。

Joining me on the call are Dick Warzala, our Chairman, President, CEO; and Jim Michaud, our Chief Financial Officer.

與我一起參加電話會議的還有我們的董事長、總裁兼執行長 Dick Warzala；以及我們的財務長 Jim Michaud。

Does that join me in welcoming Jim to his first earnings call with us and he just joined Alliant, on June 3, this year.

我是否也歡迎 Jim 參加我們的第一次財報電話會議，他於今年 6 月 3 日剛加入 Alliant。

Dick and Jim are going to review our second quarter 2024 results and provide an update on the company's strategic progress and outlook, after which we will open up the lines for Q&A.

Dick 和 Jim 將回顧我們 2024 年第二季度的業績，並提供有關公司戰略進展和前景的最新信息，之後我們將開放問答環節。

You should have a copy of the financial results that were released yesterday after the market closed.

您應該擁有一份昨天收盤後發布的財務業績副本。

If not, you can find it on our website at allient.com, along with -- posted there will be the slides that accompany today's discussion.

如果沒有，您可以在我們的網站 allient.com 上找到它，並且張貼在那裡將附帶今天討論的幻燈片。

If you are reviewing those slides, please turn to slide 2 for the safe harbor statements.

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。

As you are aware, we may make forward-looking statements on this call during the formal discussion as well as during the Q&A.

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。

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 from what is stated on today's call.

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。

These risks and uncertainties and other factors are discussed in the earnings release as well as with other documents filed by the company with Securities and Exchange Commission.

這些風險和不確定性以及其他因素在收益報告以及公司向證券交易委員會提交的其他文件中進行了討論。

You can find these documents on our website or at sec.gov. So 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.

您可以在我們的網站或 sec.gov 上找到這些文件。因此，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。

You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP.

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。

We've provided reconciliations of non-GAAP to comparable GAAP measures in the tables accompanying the earnings release as well as the slides for that, please turn to slide 3.

我們在收益發布隨附的表格以及投影片中提供了非 GAAP 與可比較 GAAP 指標的調整表，請參閱投影片 3。

And I'll turn it over to Dick to begin.

我將把它交給迪克來開始。

Thank you, Deborah.

謝謝你，黛博拉。

And welcome, everyone.

歡迎大家。

Before we delve into this quarter's discussion, I'm excited to be on the call with our new CFO.

在我們深入研究本季的討論之前，我很高興能與我們的新財務長通話。

Who had as Deb mentioned, has been with us now for just over two months.

正如黛布提到的那樣，他現在已經和我們在一起兩個多月了。

During the time, Jim has been intimately engaged with our team, again, an understanding of our processes and to support the advancement of our simplify to accelerate now strategy.

在此期間，吉姆再次與我們的團隊密切合作，了解我們的流程並支持我們「從簡化到加速」策略的推進。

Especially given his experience with similar types of initiatives in his previous roles as a financial leader in both multinational public and private companies.

特別是考慮到他之前在跨國上市公司和私人公司擔任財務負責人期間，在類似類型的舉措方面擁有豐富的經驗。

Jim brings an extensive background of establishing high-performing finance operations and transforming organizations, which makes him a valuable addition to our team.

吉姆擁有建立高績效財務營運和組織轉型的廣泛背景，這使他成為我們團隊的寶貴補充。

We're confident that Jim's contributions will be instrumental in helping to assure we achieved our strategic goals.

我們相信吉姆的貢獻將有助於確保我們實現戰略目標。

What we got into the quarter.

我們進入本季的情況。

I am proud of the efforts of our team to address the market headwinds that we've had to face all the quarter started off decently.

我為我們的團隊為解決市場逆風所做的努力感到自豪，我們在本季一開始就必須面對這些逆風。

We saw a significant shift in demand in June.

我們看到六月的需求發生了重大變化。

This decline was broadly evident across most of our served markets, but was felt most acutely in industrial automation where destocking continues as well as the powersports market, which reflects a reduction in consumer demand as you may have noticed several public companies and similar markets have already reported their end market demand challenges and ultimately a reduction and over year-over-year revenue.

這種下降在我們服務的大多數市場中都很明顯，但在持續去庫存的工業自動化以及動力運動市場中感受最為明顯，這反映了消費者需求的減少，因為您可能已經註意到，幾家上市公司和類似市場已經報告了他們的終端市場需求挑戰，並最終導致收入同比下降。

I should also note that we believe the push-out in orders is a result of inventory adjustments, the extended level of higher interest rates, especially with the parent reductions in the not-so-distant future, combined with political uncertainty, our diversification does help somewhat as we continue to benefit from the macro trends of electrification, energy, conservation and automation.

我還應該指出的是，我們認為訂單的推出是庫存調整、利率上升的結果，特別是在不久的將來母公司減產，再加上政治不確定性，我們的多元化確實當我們繼續受益於電氣化、能源、節能和自動化的宏觀趨勢時，這會有所幫助。

Nonetheless, our actual and our actions to simplify to accelerate now could not be more timely.

儘管如此，我們現在的實際行動和簡化加速的行動再及時不過了。

As we have discussed, we are on an accelerated path to reorganize to be more productive and drive stronger earnings power.

正如我們所討論的，我們正在加速重組，以提高生產力並推動更強的獲利能力。

And given current market conditions are approximately $5 million in annualized savings realized to date are even more relevant.

考慮到當前的市場狀況，迄今為止實現的年化節省金額約為 500 萬美元，這一點甚至更有意義。

Our decremental margin reflects top line softness on favorable mix and inventory reserves.

我們的利潤率下降反映了有利的組合和庫存儲備帶來的營收疲軟。

The mix impact included the replacement of higher margin, incremental Industrial Automation sales with lower margin sales from our most recent acquisition.

混合影響包括我們最近收購的利潤率較低的銷售取代了利潤率較高、增量的工業自動化銷售。

We expect our simplification process combined with the implementation of our integration plans and the capacity gain with the acquisition of SNC will drive an improved margin profile in the future.

我們預計，流程的簡化、整合計畫的實施以及收購 SNC 帶來的產能增益將推動未來利潤率的改善。

As noted on slide 4, our simplified to accelerate now plan is even more meaningful given the current market conditions.

如幻燈片 4 所示，考慮到當前的市場狀況，我們簡化的「立即加速」計畫更有意義。

As we mentioned, we executed $5 million in annualized cost reductions in the second quarter, and we're working on implementing an additional $5 million in annualized cost savings in the second half of 2024.

正如我們所提到的，我們在第二季度實現了 500 萬美元的年度成本削減，並且我們正在努力在 2024 年下半年再實現 500 萬美元的年度成本節約。

A key focus of the restructuring involves transferring specific production activities from various US operations to our existing lower-cost facilities in Mexico.

重組的一個重點涉及將特定生產活動從美國各個業務轉移到我們在墨西哥現有的低成本工廠。

Additionally, we have reduced our workforce across most global operations to align with expected demand.

此外，我們也減少了大多數全球營運部門的員工數量，以滿足預期需求。

And Jim will further discuss the restructuring charges and inventory adjustments in the quarter related to these actions.

吉姆將進一步討論與這些行動相關的本季重組費用和庫存調整。

While we are moving decisively to reduce our cost structure and continue to implement programs aimed at driving future growth, we remain confident in our long-term strategy and the fundamental strength of our value proposition.

雖然我們正在果斷地採取行動降低成本結構並繼續實施旨在推動未來成長的計劃，但我們對我們的長期策略和價值主張的基本力量仍然充滿信心。

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

接下來，讓我把它交給吉姆，讓他對財務狀況進行更深入的審查。

Thank you, Dick, and good morning, everyone.

謝謝迪克，大家早安。

As this is my first earnings call with the company.

因為這是我第一次參加該公司的財報電話會議。

I want to start by expressing my gratitude for the warm welcome I've received from the team and for the opportunity to work with such a talented group.

首先，我想對團隊的熱情歡迎以及與這樣一個才華橫溢的團隊一起工作的機會表示感謝。

In my short time here, I've been impressed by the dedication and resilience of our team.

在我在這裡的短暫時間裡，我們團隊的奉獻和韌性給我留下了深刻的印象。

I'm excited to be part of Valiant and to contribute to our ongoing success today, I'll provide an overview of our financial performance for the quarter, including key highlights in areas where we are focusing our efforts.

我很高興能夠成為 Valiant 的一員，並為我們今天的持續成功做出貢獻，我將概述我們本季度的財務業績，包括我們重點關注領域的主要亮點。

Starting on slide 5.

從投影片 5 開始。

Second quarter revenue of $136 million was down year over year by 7%.

第二季營收為 1.36 億美元，年減 7%。

The impact of foreign currency exchange rate fluctuations was nominally unfavorable by $700,000 during the quarter.

本季外幣匯率波動的影響名義上不利70萬美元。

Our vehicle markets experienced a 17% decline in sales, primarily driven by reduced demand in powersports and continued weakness in the agricultural vertical.

我們的汽車市場銷售量下降了 17%，這主要是由於動力運動需求的減少和農業垂直領域的持續疲軟所致。

These impacts were partially offset by increased demand in commercial automotive, thanks to the ramp-up of new programs that we have won over the years.

由於我們多年來贏得的新項目的不斷增加，商用汽車需求的增加部分抵消了這些影響。

The industrial market saw a 3% decrease despite strength in power quality sales, notably to the HVAC and data center market and additional sales from our recent acquisitions.

儘管電能品質銷售強勁，尤其是暖通空調和資料中心市場以及我們最近收購帶來的額外銷售，但工業市場仍下降了 3%。

These bright spots were counterbalanced by lower demand in industrial automation, as Dick, noted and within our pumps and material handling markets.

正如迪克所指出的，這些亮點被我們的泵浦和物料搬運市場中工業自動化需求的下降所抵消。

Our medical market also saw a decline which was broad-based, but primarily due to the persistent softness in medical mobility products and solutions, a trend that has persisted over the past few years.

我們的醫療市場也出現了廣泛的下滑，但主要是由於醫療行動產品和解決方案持續疲軟，這一趨勢在過去幾年中持續存在。

The bankruptcy of a large customer in this space has also had an impact on demand in the aerospace and defense sector.

該領域大客戶的破產也對航空航太和國防領域的需求產生了影響。

Sales declined primarily due to program timing within the space industry.

銷售額下降主要是由於航太工業內的計畫時間安排。

However, we are seeing positive movement on the defense side with several notable opportunities that we are working on.

然而，我們看到防守方面的積極進展，我們正在努力抓住一些值得注意的機會。

Slide 6, highlights the shift in our revenue mix across markets over the trailing 12 months, along with the catalyst for each change, the industrial vertical maintained its position as our largest market accounting for 46% of the total trailing month's sales, a notable expansion of 500 basis points.

幻燈片6 突顯了過去12 個月我們跨市場收入組合的變化，以及每次變化的催化劑，工業垂直領域保持了我們最大市場的地位，佔過去一個月總銷售額的46%，這是一個顯著的擴張500個基點。

14% growth in the space industry reflects strong demand for power quality on a trailing 12 month basis Industrial Automation had benefited from supply chain environment improvements, but has recently fallen back as the industry reset with inventory levels.

航太工業 14% 的成長反映了過去 12 個月對電能品質的強勁需求。

Vehicle market revenue remained flat on a trailing 12 month basis with higher demand in commercial automotive, offset by lower demand in powersports and agriculture, both the medical and aerospace and defense side, a decrease on a trailing 12 month basis, reflecting the same impact as the past quarter.

汽車市場收入連續 12 個月保持平穩，商用汽車需求增加，但被動力運動和農業需求下降所抵消，醫療、航空航天和國防方面的需求連續 12 個月下降，反映出與過去一個季度。

Lastly, sales through the distribution channel, a salt small component of total sales accounted for 4% for the trailing 12 month period.

最後，透過分銷管道進行的銷售，在過去 12 個月期間，鹽佔總銷售額的一小部分，佔 4%。

As detailed on slide 7.

如投影片 7 所示。

Gross profit was $40.7 million and gross margin was 29.9%.

毛利為 4,070 萬美元，毛利率為 29.9%。

A 140 basis points decline was primarily due to under absorption on lower volume and unfavorable mix, including the expected margin dilution from the S&C acquisition and $1.2 million in noncash inventory reserves.

下降 140 個基點主要是由於成交量減少和不利組合的吸收不足，包括 S&C 收購帶來的預期利潤稀釋和 120 萬美元的非現金庫存儲備。

Half of the inventory write-down was related to the bankruptcy I mentioned earlier, and the rest was mostly due to changes in projected demand.

庫存減記的一半與我之前提到的破產有關，其餘的主要是由於預期需求的變化。

We believe our underlying business can command a higher margin profile, but what we have to work in order to get there.

我們相信我們的基礎業務可以獲得更高的利潤率，但我們必須努力實現這一目標。

On slide 8, you can see the lower gross profit, $1.5 million of restructuring and business realignment costs and higher engineering expenses impacted operating income, resulting in income of $4.9 million and operating margin of 3.6%.

在投影片 8 中，您可以看到較低的毛利、150 萬美元的重組和業務調整成本以及較高的工程費用影響了營業收入，最終收入為 490 萬美元，營業利潤率為 3.6%。

Costs related to the restructuring were primarily severance.

與重組相關的成本主要是遣散費。

Operating costs and expenses were 26.3% of revenue, an increase of 320 basis points, of which 110 basis points were attributable to the restructuring costs.

營運成本和費用佔收入的26.3%，增加了320個基點，其中110個基點歸因於重組成本。

We are intensely focused on improving our profitability despite market conditions.

儘管市場狀況不佳，但我們仍高度重視提高獲利能力。

Slide 9 shows net income was $1.2 million and earnings per diluted share was $0.07. Adjusted net income of $4.9 million or $0.29 per diluted share, adjust for the non-cash amortization of intangible assets to address the accounting requirements of an innovative and acquisitive company.

幻燈片 9 顯示淨利潤為 120 萬美元，攤薄後每股收益為 0.07 美元。調整後淨利潤為 490 萬美元或稀釋後每股 0.29 美元，對無形資產的非現金攤銷進行調整，以滿足創新和收購型公司的會計要求。

The effective tax rate for the quarter was 20.6%, and we anticipate our income tax rate for the full year 2024 to be approximately 21% to 23%.

本季的有效稅率為 20.6%，我們預計 2024 年全年的所得稅稅率約為 21% 至 23%。

We use adjusted EBITDA as an internal metric to gauge our progress and operating performance given margin pressures.

我們使用調整後的 EBITDA 作為內部指標來衡量我們在考慮利潤率壓力的情況下的進展和經營績效。

Adjusted EBITDA came in at $13.9 million or 10.2% of revenue.

調整後 EBITDA 為 1,390 萬美元，佔營收的 10.2%。

We believe this should be a mid-teen adjusted EBITDA margin business and our simplification actions are intended to get us there on a more consistent basis.

我們認為，這應該是一個調整後的 EBITDA 利潤率業務，我們的簡化行動旨在讓我們在更一致的基礎上實現這一目標。

Let me talk to cash generation and our balance sheet on slides 10 and 11 year to date, cash from operations was $17.4 million, improved over the prior year as working capital efficiencies and noncash adjustments helped to offset lower net income.

讓我談談幻燈片10 和11 上的現金產生和資產負債表，迄今為止，營運現金為1,740 萬美元，比前一年有所改善，因為營運資本效率和非現金調整有助於抵消較低的淨利潤。

Capital expenditures for the first six months totaled $5.3 million.

前六個月的資本支出總計 530 萬美元。

While we continue to invest in several growth opportunities, we are fine tuning our plans to concentrate on high potential high value projects.

在我們繼續投資多個成長機會的同時，我們正在微調我們的計劃，以專注於高潛力的高價值項目。

Consequently, we have revised our 2024 capital expenditure forecast the range of to a range of $11million to $15 million, down from our previous expectation of $13 million to $17 million.

因此，我們將 2024 年資本支出預測範圍從先前的 1,300 萬美元至 1,700 萬美元下調至 1,100 萬美元至 1,500 萬美元。

Inventory turns declined to 2.9 times from year end, while our days sales outstanding stayed flat at 56 days.

庫存週轉率較年底下降至 2.9 倍，而銷售天數則持平於 56 天。

Total debt of approximately $237 million increased from year end 2023 due to the S&C acquisition, we paid down $3.3 million in the quarter, debt net of cash was about $206 million, representing 43.6% of net debt to capitalization as defined in our credit agreement Our bank leverage ratio was 3.29 times our financial priorities, first, to strengthen cash conversion and reduce debt.

由於收購 S&C，總債務較 2023 年底增加約 2.37 億美元，本季度我們償還了 330 萬美元，扣除現金的債務約為 2.06 億美元，占我們信貸協議中定義的淨債務與資本總額的 43.6%銀行槓桿率為3.29倍，我們的財務重點，一是加強現金轉換，減少債務。

With that, if you advance to slide 12, I will now turn the call back over to Dick.

這樣，如果您前進到幻燈片 12，我現在會將電話轉回給迪克。

Thank you, Jim.

謝謝你，吉姆。

Orders increased 12% sequentially in the quarter, driven by power quality projects and the ramp-up of our commercial automotive programs.

在電能品質項目和商用汽車項目的推動下，本季訂單季增 12%。

The sequential improvement in demand is somewhat encouraging, although there is an impact on orders as our customers continue to reduce inventory levels.

儘管由於我們的客戶繼續降低庫存水準而對訂單產生了影響，但需求的連續改善在某種程度上令人鼓舞。

Additionally, we are experiencing delays in the launch of certain projects, which may be a result of the upcoming election and expected decrease in interest rates.

此外，我們某些項目的啟動出現了延遲，這可能是由於即將舉行的選舉和預期利率下降的結果。

Importantly, while we are getting some order push-outs, order cancellations are minimal and being addressed appropriately.

重要的是，雖然我們收到了一些訂單推送，但訂單取消的情況很少，並且得到了適當的解決。

We expect the slowdown will extend through this year and into 2025 for the kind of backlog is attributed to continued improvements within the supply chain as lead times were reduced and we ship products that were in our backlog as a result of the previous market condition.

我們預計這種放緩將持續到今年並持續到2025 年，因為這種積壓歸因於供應鏈內的持續改善，因為交貨時間縮短了，而且我們運送了由於之前的市場狀況而積壓的產品。

Our outlook, as outlined on slide 13, we are taking decisive steps to align our business with current market conditions, we anticipate the challenging environment to persist through the second half of 2024, with our annualized revenue run rate expected to fall below $500 million over the next few quarters.

我們的前景，如幻燈片13 所述，我們正在採取果斷措施，使我們的業務適應當前的市場狀況，我們預計充滿挑戰的環境將持續到2024 年下半年，我們的年化收入運行率預計將降至5 億美元以下未來幾季。

This projection reflects substantial inventory rebalancing by our customers as the supply chain returns to normal, some market erosion and a relatively weak industrial automation environment.

這項預測反映了隨著供應鏈恢復正常、一些市場侵蝕以及相對疲軟的工業自動化環境，我們的客戶進行了大量的庫存再平衡。

We expect that the reduction of uncertainty, settling of lower interest rates and normalize in inventory should get us back to stronger revenue sometime in mid-2025.

我們預計，不確定性的減少、較低利率的解決方案以及庫存的正常化應該會讓我們在 2025 年中期的某個時候恢復到更強勁的收入。

As we streamline our operations, we believe we can enhance customer service and strengthen our long-term competitiveness.

隨著我們簡化運營，我們相信我們可以改善客戶服務並增強我們的長期競爭力。

Our goal is to make -- it easy to do business with and accelerate our speed to market with new product innovation.

我們的目標是透過新產品創新，讓開展業務變得更加容易，並加快我們進入市場的速度。

This strategy is also expected to position us to better handle the current macroeconomic environment and industrial challenges.

這項策略也有望使我們更能應對當前的宏觀經濟環境和產業挑戰。

We aim to achieve our target of $10 million in annualized savings this year and to identify and execute further actions beyond this target to ensure we emerge as a stronger, more resilient enterprise with higher earnings power.

我們的目標是今年實現年化節省 1000 萬美元的目標，並確定和執行超出這一目標的進一步行動，以確保我們成為一家更強大、更具彈性、具有更高盈利能力的企業。

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

透過該操作員，讓我們打開提問線路。

(Operator Instructions) Greg Palm with Craig-Hallum.

（操作員說明）Greg Palm 和 Craig-Hallum。

Yes, thanks.

是的，謝謝。

This is Danny -- on for Greg today.

我是丹尼，今天替格雷格發言。

I guess maybe just digging into more on what you saw and what you're seeing, you know, June, the kind of significant falloff in demand on you said that was kind of weighted towards industrial automation and power sports.

我想也許只是深入研究你所看到的和你所看到的，你知道，六月，你所說的那種需求大幅下降，這有點偏向工業自動化和動力運動。

I guess as we've moved through July now and into early August on, I guess, how has that changed are you seeing some of that weakness spread across the other end markets?

我想，隨著我們現在已經進入 7 月並進入 8 月初，我想，情況發生了怎樣的變化，您是否看到一些疲軟蔓延到其他終端市場？

Or I guess just anything more you can give on the end market geography, what you're seeing quarter-to-date?

或者我想您可以提供有關終端市場地理的更多信息，您本季至今看到了什麼？

So far, I'm sure, Danny, I would say to you that we see a continuation of what we experienced in June.

到目前為止，丹尼，我確信我會告訴你，我們看到了六月經歷的延續。

And I think just to be clear, we had mentioned that we started the quarter quite well, April and May were relatively solid and then June was a significant drop-off.

我想澄清一下，我們曾經提到我們本季的開局相當不錯，四月和五月相對穩定，然後六月出現大幅下滑。

We do expect that that will continue, as we mentioned here through the remainder of the year and potentially into of 2025, looking at the incoming order rates and as you're asking to look out and fill what has occurred in July and so

我們確實預計這種情況將持續下去，正如我們在此提到的，在今年剩餘時間內，甚至可能持續到2025 年，我們會查看收到的訂單率，並要求您留意並填寫7 月份發生的情況，所以

--

--

There were some mixed signals.

有一些混合信號。

We did see a couple of encouraging signs that maybe things will come back, but it's hard to gauge based on one month.

我們確實看到了一些令人鼓舞的跡象，表明情況可能會好轉，但很難根據一個月來判斷。

And I would caution us to not get carried away that we did see a couple of positive signs there and that things were going to change drastically.

我要提醒我們不要得意忘形，我們確實看到了一些正面的跡象，而且事情將會發生巨大的變化。

So know sticking with what we've stated here, the industrial automation, the rebalancing that we saw for inventories and the impact it had, especially on US and the other markets.

因此，請記住我們在這裡所說的，工業自動化，我們看到的庫存再平衡及其所產生的影響，特別是對美國和其他市場的影響。

We didn't talk much about geographic markets, but certainly Europe was impacted and again, some mixed signals.

我們沒有過多談論地理市場，但歐洲肯定受到了影響，並且再次出現了一些混合信號。

So it's up for us right now.

所以現在就由我們來決定了。

Our emphasis is going to be on getting the business adjusted readjusted and align to take cost out to become and more profitable company based on us a lower cost base.

我們的重點是對業務進行調整和調整，以降低成本，在較低的成本基礎上成為盈利能力更強的公司。

That's really our focus and will continue to be our focus this year and into next year.

這確實是我們的重點，並將繼續成為我們今年和明年的重點。

Yes, I guess just based on that kind of mixed signals and then it kind of sounds like maybe some uncertain visibility.

是的，我想只是基於這種混合訊號，然後聽起來可能有些不確定的可見性。

I mean, the $5 million -- $500 million run rate through the second half.

我的意思是，下半年的運作率為 500 萬至 5 億美元。

And I think it even kind of said maybe over the next several quarters on, but there's also a chance that maybe kind of the inventories return start returning, in early 2025 before maybe normal run rates in mid-2025.

我認為甚至可能會在接下來的幾個季度內出現，但庫存回報也有可能在 2025 年初開始回歸，然後可能會在 2025 年中期恢復正常運作率。

So I guess looking out into 2025, should we kind of expect a gradual improvement starting early in the year before getting to more normalized levels?

因此，我想展望 2025 年，我們是否應該期待從年初開始逐步改善，然後達到更正常化的水平？

Or do you expect kind of that $500 million run rate to last into Q1 next year as well before starting to really improve?

或者您是否預計 5 億美元的運行率也會持續到明年第一季度，然後才開始真正改善？

Yes, I would say, based on what we know today, I would expect that to continue into Q1.

是的，我想說，根據我們今天所了解的情況，我預計這種情況將持續到第一季。

And certainly if something changes there and we see something, the dynamics of the market start to change.

當然，如果那裡發生了一些變化，我們看到了一些東西，那麼市場的動態就會開始改變。

We certainly will keep everybody abreast of it.

我們當然會讓每個人都了解最新情況。

So but saying that in running the business with, I think the anticipation that that would be the case, the $500 million annualized run rate, it just makes it more important for us to continue to streamline to reorganize to make sure that we take the cost out and that's our focus, and that will continue to be our focus on.

因此，在經營業務時，我認為預期情況會是這樣，年化運作率為 5 億美元，這使得我們繼續精簡重組以確保我們承擔成本變得更加重要這是我們的重點，並將繼續是我們的重點。

So and we mentioned else, I would just say to you here we talked about in the second half of 2024 the additional 5 million.

所以，我們提到了其他事情，我只想對你們說，我們談到了 2024 年下半年額外的 500 萬。

And I will tell you that's substantially already identified and will be fully executed very early here in the second half.

我會告訴你，這基本上已經確定，並將在下半年早些時候全面執行。

So yes, cotton adjustment, I guess, realigning the business just to be just not to take.

所以，是的，我想，棉花調整，重新調整業務只是為了不採取行動。

Yes.

是的。

Yes.

是的。

I guess the market swings and the uncertainties we talked about things could change and that could change pretty rapidly if certain things fall into place.

我想市場波動和我們談論的不確定性可能會發生變化，如果某些事情落實到位，這種變化可能會很快。

But we're not we're not running our business in that manner.

但我們不是這樣經營我們的業務的。

We're running our business that will take control of what we can control and we'll get it done.

我們正在經營我們的業務，我們將控制我們能控制的事情，並且我們將完成它。

Sure.

當然。

And on that added $5 million, not $10 million of cost takeouts.

除此之外還增加了 500 萬美元，而不是 1000 萬美元的成本支出。

I know you mentioned you're still looking for additional opportunities.

我知道您提到您仍在尋找更多機會。

Do you feel like there's there some more levers to pull if things continue to worsen or stay at this kind of level for longer than you're expecting?

如果情況繼續惡化或保持在這種水平的時間比您預期的時間長，您是否覺得還有更多的槓桿可以拉動？

Is there more cost takeouts just to kind of, you know, we saw some of that profitability.

是否有更多的成本支出只是為了某種程度，你知道，我們看到了一些獲利能力。

Yes, it will have nothing to do on whether markets continue to worsen or not.

是的，這與市場是否持續惡化無關。

I mean, there we've taken a really hard look at everything and structure wise and so forth.

我的意思是，我們對一切和結構等方面都進行了非常認真的審視。

And there were definitely some additional opportunities identified.

並且肯定還發現了一些額外的機會。

It's just a matter of how much can we execute in?

這只是我們能執行多少的問題？

We get implemented in the short period of time.

我們在短時間內得到實施。

Okay, great.

好的，太好了。

I will leave it there.

我會把它留在那裡。

Thanks.

謝謝。

Thank you, Dennis.

謝謝你，丹尼斯。

Brett Kearney, American Rebirth Opportunity Partners.

布雷特‧科爾尼，美國重生機會夥伴。

Hi, Dick and Jim.

嗨，迪克和吉姆。

Good morning.

早安.

Thanks for taking my question.

感謝您提出我的問題。

Marty breadth on Great to hear some of the new commercial vehicle awards ramping up.

馬蒂廣度很高興聽到一些新的商用車獎項不斷增加。

Curious what the puts and takes global economy, what you're hearing from customers and some of the other recent new vehicles are programs you've won and kind of what customers are looking for and kind of pushing forward with those ramps as well?

好奇全球經濟的動向、您從客戶那裡聽到的以及您最近贏得的一些其他新車的計劃以及客戶正在尋找什麼以及推動這些坡道的情況嗎？

Very well, as you know, it's interesting this that there has been, but I think it's been in the news about the EV side of the electric vehicle side.

很好，如您所知，這很有趣，但我認為它已經出現在有關電動車方面的 EV 方面的新聞中。

A bit in most of our solutions are agnostic to what the if it's a combustion engine or electric engine, it doesn't really fit and we're agnostic to that.

我們的大多數解決方案都有點不可知，如果它是內燃機或電動發動機，它並不真正適合，我們對此也不可知。

So we did see that there had been a downshift in demand, and we experienced that in the second quarter.

因此，我們確實看到需求下降，並且我們在第二季度經歷了這種情況。

So it was an essentially a push out of one quarter, I'm sorry, one month.

所以這本質上是一個季度的推遲，對不起，一個月。

And so I think it's been they've adjusted for data.

所以我認為他們已經對數據進行了調整。

And going forward, we should see steady demand there.

展望未來，我們應該會看到那裡的需求穩定。

I wouldn't suggest that it's going to increase beyond where we are today, but we do have some other programs that we're working on that should not this year, but we'll ramp and ramp up next year as well.

我不認為它會增加到超出我們今天的水平，但我們確實正在進行一些其他計劃，這些計劃不應該在今年進行，但明年我們也會不斷增加。

But so there was an impact there, although it was relatively short and hopefully that's all been adjusted for and moving forward, we'll see the steady state demand.

但是，那裡確實產生了影響，儘管影響相對較短，但願這一切都得到了調整併向前推進，我們將看到穩定的需求。

The big challenge was some inventory adjustments that had key customers where it was going to go, go, go -- ship, ship, everything you've got and not all of a sudden hold on.

最大的挑戰是一些庫存調整，這些調整讓關鍵客戶將其運送、運送、運送所有你擁有的東西，而不是突然保留。

We've got we've got some challenges here.

我們在這裡遇到了一些挑戰。

We're going to have to adjust and they were quite significant.

我們將不得不進行調整，它們非常重要。

Excellent, very helpful.

非常好，非常有幫助。

And then if I can just ask one more on A&D.

然後我能否再問一個有關 A&D 的問題。

I'm just curious, as you look out the next year or two on what you're seeing, I guess both on, I say, space market as well as traditional defense opportunities for the company?

我只是很好奇，當你展望未來一兩年你所看到的情況時，我想我說的是太空市場以及公司的傳統防禦機會？

Yes, very, very encouraging, we have mentioned in the past that we've been we've worked on several applications and at some point they had to ramp up.

是的，非常非常令人鼓舞，我們過去曾提到過，我們已經開發了多個應用程序，並且在某些時候它們必須加速。

And I think the some of the projects were pushed to the right is in decision making and so forth.

我認為有些項目被推到了右邊，是在決策等方面。

But there's a significant number of projects and we are starting to see a slow ramp up in demand in some of the areas that we would have expected to have already seen that, right.

但有大量的項目，我們開始看到一些領域的需求緩慢增長，我們本來預計已經看到了這一點，對吧。

So A&D is a bright spot as well as medical.

所以A&D 和醫療一樣是亮點。

We see some good opportunities in medical.

我們在醫療領域看到了一些很好的機會。

Perfect.

完美的。

Thank you very much.

非常感謝。

Thank you.

謝謝。

(Operator Instructions) Ted Jackson, Northland Securities.

（操作員指令）Ted Jackson，北國證券。

Thanks.

謝謝。

I was a little concerned that wasn't getting recognized by your system for the question queue.

我有點擔心您的系統無法辨識問題隊列。

Around there to hear there

在那兒聽那兒

--

--

Sam, as I am out there, I pay attention to it, so I wanted to welcome Jim on board, although I think he missed the boat and went straight into the water.

山姆，因為我在外面，所以我想歡迎吉姆上船，儘管我認為他錯過了船，直接下水了。

So but hopefully at a boat, you know, Hillel turnaround, yes, you're getting in at the bottom Jim, you're getting in at the bottom.

所以，但希望在船上，你知道，希勒爾的轉變，是的，你正在進入底部吉姆，你正在進入底部。

That's what I'm going to necessarily.

這就是我必然要做的事。

They have nowhere to go but up.

他們除了向上，無處可去。

And so my questions are a couple of things on.

所以我的問題有幾個。

First of all on the $5 million cost savings that you've already done and the $5 million that's coming, how should we think about how that rolls through the model with regards to kind of OpEx and gross margins.

首先，關於您已經節省的 500 萬美元成本以及即將節省的 500 萬美元，我們應該如何考慮如何在營運支出和毛利率方面貫穿模型。

Primarily we focused on fixed cost.

我們主要關注固定成本。

And so there is there are some maybe Jim can answer this a little more granularity as far as the fixed manufacturing costs that were reduced, but also primarily an OpEx.

因此，吉姆也許可以更詳細地回答這個問題，即減少的固定製造成本，但主要是營運支出。

And that's where our focus was, I mean, in that cost, I mean, needless to say, as volumes reduce the variable costs were reduced as well.

這就是我們關注的重點，我的意思是，在成本方面，我的意思是，不用說，隨著產量的減少，變動成本也隨之減少。

So we don't that's not a number we're reporting were strictly reporting.

所以我們不認為這不是我們嚴格報告的數字。

What we saw was incremental savings, although we did take the differential in direct labor costs between US labor and Mexican labor is part of that.

我們看到的是增量節省，儘管我們確實認為美國勞動力和墨西哥勞動力之間的直接勞動力成本差異是其中的一部分。

But that was a relatively small portion if most of it has been in the operating expenses and certainly there's been some fixed manufacturing overhead as well as far as your question beyond that as far as the timing of that was kind of the next part is how would we think about it, how I mean, you sound like you're five millions already kind of done.

但這只是一個相對較小的部分，如果大部分都在營運費用中，當然還有一些固定的製造費用，以及您的問題除此之外，下一部分的時間安排是如何我們想一想，我的意思是，你聽起來好像你已經賺了五百萬了。

So we can think about that coming into play in the second half of this year.

所以我們可以考慮在今年下半年發揮作用。

And then the next $5 million sounds like we'll see maybe some of that in fourth or first quarter immune is kind of what I interpreted, but some color on that would be great.

然後接下來的 500 萬美元聽起來我們可能會在第四季度或第一季看到其中的一些免疫，這就是我的解釋，但如果有一些顏色那就太好了。

Yes.

是的。

The I mean, you're absolutely correct in the first $5 million, it's already in.

我的意思是，你說的前 500 萬美元絕對正確，它已經存入了。

We've taken the charges against it and will be experienced and realizing the benefit of that immediately the next $5 million that we talked about.

我們已經接受了針對它的指控，並將在我們談到的下一個 500 萬美元中立即體驗並意識到它的好處。

Some of it's in has already been implemented here in the second half.

其中一些已經在下半年實施。

And I would tell you most of it will be done early in the second half.

我想告訴你，大部分工作將在下半年早些時候完成。

So we will start to see some benefit of that as well.

因此，我們也將開始看到其中的一些好處。

Following the next year, we'll have the full benefit of the $10 million in cost reductions.

明年之後，我們將充分受益於 1000 萬美元的成本削減。

And as we mentioned, there's other there's other actions that we take is that we need a little bit more time and make sure that we execute them in a proper manner, but there's more to come.

正如我們所提到的，我們還採取了其他行動，我們需要更多的時間並確保我們以正確的方式執行它們，但還有更多的事情要做。

Okay.

好的。

My next question is just going into revenue mix, excuse me.

我的下一個問題是關於收入組合，請原諒。

And in guidance, I mean, you saw weakness pretty much across the business.

我的意思是，在指導中，您幾乎看到了整個行業的弱點。

I mean, generally speaking with the ones that really stood out for you being industrial automation and let's call it recreational vehicles.

我的意思是，一般來說，真正讓您脫穎而出的是工業自動化，我們稱之為休閒車。

When you look at your outlook this $500 million run rate that we are expect to see for the next several quarters.

當你看看你的前景時，我們預計在接下來的幾個季度會看到 5 億美元的運行率。

Can you provide some color with regards to where that weakness will be concentrated from an end market perspective, I'm going to assume it's the markets that have already been addressed, but I want to make sure.

您能否提供一些關於從終端市場角度來看弱點將集中在哪裡的信息，我假設市場已經解決，但我想確定一下。

And then from a geographic perspective where that weakness might be and if you can kind of tie all that together, that would be great extent.

然後從地理角度來看，這個弱點可能在哪裡，如果你能把所有這些連結在一起，那將是一個很大的範圍。

So powersports, what we would expect, I mean, and again, we pay attention to what our customers are seeing in the market and what they see the trends and the future trends come in.

所以 powersports，我們所期望的，我的意思是，我們再次關注我們的客戶在市場上看到的以及他們看到的趨勢和未來趨勢。

So I would say to you that that's certainly one we expect to have weaker demand from kind of units.

因此，我想對您說，我們預計此類單位的需求肯定會減弱。

It's pretty much across the board.

這幾乎是全面的。

The industrial piece is the wildcard on that.

工業品是其中的通配符。

We're taking a cautionary approach here plan in our business that is not going to come back rapidly.

我們在業務中採取謹慎的計劃，該計劃不會很快恢復。

But -- what I'd say to you, it has the potential as we get into fourth quarter of this year to return to a certainly a much better level for us.

但是，我要對你說的是，隨著我們進入今年第四季度，它有可能恢復到一個更好的水平。

And as far as the other markets go, I think, yes, the overall we see it's a decrease, but we mentioned already that the aerospace and defense space applications, seeing an uptick there and see in medical.

就其他市場而言，我認為，是的，總體而言，我們看到了下降，但我們已經提到，航空航太和國防太空應用，以及醫療領域的應用有所增加。

So Phil, we're planning passionately and we're acting aggressively, make sure that the foundation just gets stronger and it needs to get stronger to achieve the goals that we're not forgetting about that we've established for ourselves in the past of margin improvement, geographic side of it, yes, Europe has seen a significant turn our outlook.

所以菲爾，我們正在熱情地計劃，我們正在積極地行動，確保基礎變得更強大，並且需要變得更強大，以實現我們沒有忘記的我們過去為自己設定的目標利潤率改善，地理方面，是的，歐洲已經看到我們的前景發生了重大轉變。

I'd have to be careful because, Ted, we play in pockets and niche markets and so forth.

我必須小心，因為，特德，我們在口袋和利基市場等領域進行遊戲。

And while the overall market and can be classified as industrial, you really got to look at the specifics of what is it that we do in industrial or vehicle because as we mentioned this not automotive, it's agricultural and you can see the guidance into the information out there and a downturn in the ag equipment markets and so forth.

雖然整體市場可以歸類為工業市場，但您確實需要了解我們在工業或汽車領域所做的具體工作，因為正如我們所提到的，這不是汽車市場，而是農業市場，您可以看到資訊中的指導以及農業設備市場的低迷等等。

So I think as we look at that, you say geographic other than where we've had some strength in new programs kicking in and or maybe the acceleration of some others.

所以我認為，當我們看待這個問題時，你說的是地理因素，而不是我們在新計劃的啟動和/或其他一些計劃的加速方面擁有一定優勢的地方。

The general market in Europe is down and it's down 8% to 10% and that reflects.

歐洲整體市場下跌，下跌 8% 至 10%，這反映了這一點。

So while we have some increases, we have further decreases that go beyond the 8% to 10% in some specific markets.

因此，雖然我們有一些成長，但在某些特定市場，我們的降幅甚至超出了 8% 至 10%。

But we do again, I would say this year that, Tom, we're starting to see some mixed signals there that perhaps it's coming back on.

但我們又這樣做了，我想說，今年，湯姆，我們開始看到一些混合訊號，也許它會捲土重來。

But as I said, I have to repeat myself, we're going to plan cautiously and we're going to react really aggressively to get the cost structure in line where it should be to achieve the margins.

但正如我所說，我必須重複一遍，我們將謹慎計劃，我們將做出非常積極的反應，以使成本結構符合實現利潤率的目標。

We said we were going to achieve and we've been talking about for the last couple of years.

我們說過我們將實現這一目標，並且過去幾年我們一直在談論這一目標。

Okay.

好的。

My final question, just kind of probably makes logical sense that your kind of given you a full plate right now with the challenging macro backdrop, a fair amount of no business restructuring going on.

我的最後一個問題，可能是合乎邏輯的，在充滿挑戰的宏觀背景下，你現在已經給了你一個完整的盤子，相當多的沒有正在進行的業務重組。

Is it fair to assume that the growth the M&A side of the growth strategy is going to be set aside, why you kind of get the ship right right-sized and things battened down?

假設成長策略的併購方面的成長將被擱置，這是否公平，為什麼你要讓船的尺寸合適，並把事情控制住？

Or is it like are you still keeping the keeping a pretty active effort on that front?

還是你仍在這方面保持正面的努力？

And that's my last question.

這是我的最後一個問題。

Now you're it's fair to say that I mean, we are focused on cash and we're focused on getting the debt paid down.

現在你可以公平地說，我的意思是，我們專注於現金，我們專注於償還債務。

And so far.

到目前為止。

So yes, I mean, we continue to identify and groom opportunities for the future.

所以，是的，我的意思是，我們將繼續尋找和培育未來的機會。

So in the short term here we will it would have to be something totally exceptional.

因此，從短期來看，我們的產品必須是完全不同尋常的。

And we'd have to go after it in a different way than what we've done in the past.

我們必須以不同於過去的方式來追求它。

So our focus is on internal operations continue to groom for the long term.

因此，我們的重點是繼續長期培訓內部運作。

The acquisitions.

收購。

But in the meantime, we're not aggressively going after things that happen in the market right now.

但同時，我們也不會積極關注目前市場上發生的事情。

Okay.

好的。

All right.

好的。

Thanks for taking my questions.

感謝您回答我的問題。

I'll talk to you guys soon.

我很快就會和你們談談。

Thank you.

謝謝。

Thank you.

謝謝。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the call back to Dick Warzala for closing remarks.

我想將電話轉回給迪克·瓦爾扎拉 (Dick Warzala)，讓其致閉幕詞。

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

感謝大家參加今天的電話會議以及對 Allient 的興趣。

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

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 third quarter 2024 results in November.

我們期待在 11 月公佈 2024 年第三季業績後再次與大家交談。

Thank you for your participation and have a great day.

感謝您的參與，祝您有美好的一天。

This concludes today's conference.

今天的會議到此結束。

You may now disconnect your lines.

現在您可以斷開線路。