Ampco-Pittsburgh Corp (AP) 2019 Q2 法說會逐字稿

Good day, and welcome to the Ampco-Pittsburgh Corporation Second Quarter 2019 Earnings Conference Call. (Operator Instructions)

各位好，歡迎參加 Ampco-Pittsburgh Corporation 2019 年第二季財報電話會議。(接線員指示)

Please note, this event is being recorded.

請注意，本活動將被錄音。

I would like to now turn the conference over to Melanie Sprowson, Director of Investor Relations and Corporate Communication. Please, go ahead.

現在我想將會議交給投資人關係與企業傳播總監 Melanie Sprowson。請開始。

Thank you, Jake. And good morning to everyone joining us on today's second quarter conference call. I'm joined by Brett McBrayer, our Chief Executive Officer; and Mike McAuley, Senior Vice President, Chief Financial Officer and Treasurer.

謝謝你，Jake。也向今天加入我們第二季電話會議的各位道早安。與我一同出席的有我們的執行長 Brett McBrayer，以及資深副總裁、財務長兼財務主管（Treasurer）Mike McAuley。

Also joining us on the call today are Sam Lyon, President of Union Electric Steel Corporation; and Terry Kenny, President of Air and Liquid Systems Corporation.

今天也一同參與電話會議的還有 Union Electric Steel Corporation 總裁 Sam Lyon，以及 Air and Liquid Systems Corporation 總裁 Terry Kenny。

Before we begin, I would like to remind everyone that participants on this call may make statements or comments that are forward-looking and may include financial projections or other statements of the Corporation's plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties, many of which are outside of Corporation's control. The Corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to a variety of factors, including those discussed in the Corporation's most recently filed Form 10-K and subsequent filings with the Securities and Exchange Commission. We do not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statements.

在開始之前，我想提醒各位，本次電話會議的與會者可能會發表或評論前瞻性陳述，並可能包含財務預測或公司計畫、目標、預期或意圖的其他陳述。這些事項涉及若干風險與不確定性，其中許多超出公司控制範圍。由於多種因素，公司實際結果可能與任何前瞻性陳述所預測或暗示者有重大差異，包括公司最近提交的 Form 10-K 以及其後向美國證券交易委員會（SEC）提交的文件中所討論的因素。我們不承擔更新或以其他方式公開發布對前瞻性陳述之任何修訂的義務。

A replay of this call will be posted on our website later today and remain available for 2 weeks following the conclusion of the call. To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com.

本次電話會議的重播將於今日稍晚發布於我們的網站，並在會議結束後保留 2 週供查閱。如需取得財報新聞稿或網路重播，請至 ampcopgh.com 網站的 Investors（投資人）專區查詢。

With that, I'll turn the call over to Brett McBrayer, Ampco-Pittsburgh's CEO. Brett?

接下來，我將把電話會議交給 Ampco-Pittsburgh 執行長 Brett McBrayer。Brett？

Thank you, Melanie. Good morning, and welcome to our call. I'm excited to share the results of our second quarter performance. While we recorded a modest GAAP loss from continuing operations in quarter 2, we are beginning to see the initial impact of our improvement efforts.

謝謝你，Melanie。各位早安，歡迎參加我們的電話會議。我很高興與各位分享我們第二季的營運表現結果。雖然我們在第二季的持續營運依 GAAP 認列小幅虧損，但我們已開始看到改善措施的初步影響。

These efforts have delivered an adjusted income from continuing operations, which is a non-GAAP measure, of $2.5 million for the quarter and $3.8 million for the first 6 months of 2019, an improvement of more than 80% compared to last year's quarter and nearly double last year's adjusted performance on a year-to-date basis.

這些努力帶來了持續營運的調整後獲利（Adjusted income from continuing operations；非 GAAP 指標）：本季為 250 萬美元，2019 年前 6 個月為 380 萬美元；相較去年同期改善超過 80%，而以年初至今基礎計算，幾乎是去年調整後表現的兩倍。

During the second half of the year, we will continue to rightsize our assets to deliver sustainable profitability in our businesses. We are on target to close on the sale of our Avonmore facility by around September 30. We also anticipate the completion of our ASW divestiture by the end of the year.

在今年下半年，我們將持續調整資產規模，以在各項業務中實現可持續的獲利能力。我們正按計畫於約 9 月 30 日前完成 Avonmore 廠房的出售交割。我們也預期在年底前完成 ASW 的剝離（divestiture）。

We expect a marked improvement in our earnings profile, beginning as early as the fourth quarter of this year. Mike McAuley will review our financial results in more detail later in the call.

我們預期獲利結構將出現顯著改善，最早可自今年第四季開始。稍後在電話會議中，Mike McAuley 將更詳細檢視我們的財務結果。

Another area of importance that I would like to highlight is our performance from the safety, health and environmental standpoint. Across the globe, we [begin] every operational, daily management meeting, focused on the wellbeing of our employees and the stability of our environmental systems. With the introduction of new leadership in 2019 and a focus on disciplined daily execution, we have made some significant improvements.

我還想強調另一個重要領域：我們在安全、健康與環境方面的表現。在全球各地，我們在每一場營運與日常管理會議開始時，都會聚焦於員工福祉以及環境系統的穩定性。隨著 2019 年引進新領導團隊並專注於有紀律的日常執行，我們已取得一些顯著改善。

Our continuing operations have reduced recordable injuries globally by over 11% and lost-time injuries by 17% compared to last year. We are far from where we want to be, but I'm encouraged by the progress our team has made.

與去年相比，我們的持續營運在全球範圍內將可記錄傷害（recordable injuries）降低超過 11%，並將失能工傷（lost-time injuries）降低 17%。我們距離目標仍有一段路，但我對團隊所取得的進展感到鼓舞。

We also continue to operate our facilities incident-free from environmental perspective. We will always strive to safeguard and enhance the wellbeing of the communities where we operate.

從環境角度來看，我們也持續維持各廠區零事件（incident-free）運作。我們將始終致力於守護並提升我們營運所在地社區的福祉。

These measures of success highlight our improved stability in people, processes and equipment.

這些成功指標凸顯了我們在人員、流程與設備方面更佳的穩定性。

I'll now turn the call over to Sam Lyon, Union Electric Steel President.

接下來我將把電話會議交給 Union Electric Steel 總裁 Sam Lyon。

Thank you, Brett. In the second quarter, we have continued our focus on safety, cost reductions in the U.S. plants and reducing arrears in our European operations. We have also launched initiatives to further improve our European operations performance.

謝謝你，Brett。在第二季，我們持續聚焦於安全、降低美國廠區成本，以及減少歐洲營運的積壓（arrears）。我們也啟動多項措施，以進一步提升歐洲營運表現。

Earlier, Brett mentioned a reduction in lost-time injuries and recordable injuries over last year. Much of this progress is made in Q2 where globally, we reduced our recordable count from 16 to 11.

先前 Brett 提到，相較去年失能工傷與可記錄傷害都有所下降。其中多數進展發生在第二季：在全球範圍內，我們將可記錄事件數從 16 起降至 11 起。

While 11 people getting hurt to the point of requiring medical treatment is unacceptable, 5 more people went home to their families, safe and unharmed, in the first half of this year compared to prior year. This improvement is being driven by 2 thrusts. Focused safety, observations on high-risk tasks, which many times result in a change to the [tool] method to minimize or eliminate the risks identified and behavioral safety observations. We will be relentless when it comes to safety as our goal is a 0-injury workplace.

雖然仍有 11 人受傷到需要醫療處置是不可接受的，但與去年同期相比，今年上半年多了 5 位同仁能安全無恙地回家與家人團聚。這項改善由兩大推動力帶動。其一是聚焦安全，針對高風險作業進行觀察，這往往會促成對[工具]方法的調整，以將已識別的風險降至最低或予以消除；其二是行為安全觀察。在安全方面我們將毫不鬆懈，因為我們的目標是零傷害的工作場所。

From a cost perspective, our goals are the same as they were during our last call. The first item, as Brett mentioned, is the ramp down of the Avonmore site. We are on schedule to complete this sale by the end of September. We have absorbed the new production requirements and finishing back into our European operations and are working off the final work-in-process inventory at Avonmore.

就成本而言，我們的目標與上次電話會議時相同。第一項，如 Brett 所提，是 Avonmore 廠區的逐步降載（ramp down）。我們按進度將在 9 月底前完成這筆出售。我們已將新的生產需求與精整（finishing）作業回收至歐洲營運，並正在消化 Avonmore 的最後在製品（work-in-process）存貨。

As mentioned in our last call, we are expanding our capabilities in Sweden, which will triple our capacity at that plant for these large rolls where demand continues to be robust.

如同上次電話會議所提，我們正在瑞典擴充產能，將使該廠針對這些大型轧輥（large rolls）的產能提升至三倍，而此類產品需求仍然強勁。

Secondly, we continue to take cost out of the system. We are continuing to implement a tiered daily management process based on the Toyota production system. We are driving improvement by understanding our shortfalls daily and applying resources to close those gaps. Year-to-date, our efficiencies have improved in our U.S. facilities by 7%.

第二，我們持續從系統中去除成本。我們持續導入以豐田生產系統為基礎的分層日常管理流程（tiered daily management process）。我們透過每日了解不足之處並投入資源彌補差距來推動改善。年初至今，我們美國廠區的效率已提升 7%。

The cost improvements, that I discussed a moment ago, have allowed us to offset the reduction in our nonroll product sales, which generally carry a higher margin than our roll product. Moving forward, we will continue to drive operational improvements in our U.S. plants and complete planned maintenance outages to improve the reliability of several critical assets in Q3.

我剛才提到的成本改善，使我們得以抵消非轧輥（nonroll）產品銷售下滑的影響；非轧輥產品通常較轧輥產品具有更高毛利。展望未來，我們將持續推動美國廠區的營運改善，並在第三季完成計畫性維修停機（planned maintenance outages），以提升多項關鍵資產的可靠度。

For our European assets, we are improving our process yield and restructuring our cast roll facilities, which we expect to generate an estimated $4 million in annual run rate savings starting by the end of Q4 of this year.

就我們的歐洲資產而言，我們正在提升製程良率並重整鑄造轧輥（cast roll）廠區；我們預期自今年第四季末起，將帶來估計每年 400 萬美元的年化節省（annual run rate savings）。

In our current backlog, we continue to experience softness from our nonroll products but have a solid backlog for our roll business with some specialty grade size combinations being sold out through 2020.

在目前的在手訂單（backlog）中，我們的非轧輥產品仍持續偏弱，但轧輥業務的在手訂單穩健，且部分特殊等級的尺寸組合已售罄至 2020 年。

Thanks, Sam. I'll now turn the call over to Terry Kenny, President of Air & Liquid Processing Systems. Terry?

謝謝你，Sam。接下來我將把電話會議交給 Air & Liquid Processing Systems 總裁 Terry Kenny。Terry？

Thanks, Brett, and good morning. I am happy to report that we have continually reduced our OSHA recordable injuries on a year-to-date basis, achieving a 42% reduction in recordable injuries and a 100% reduction in lost-time injuries. We have accomplished this principally by involving all employees in plant-wide safety programs.

謝謝你，Brett，早安。我很高興報告，我們在年初至今的基礎上持續降低 OSHA 可記錄傷害事故，達成可記錄傷害事故降低 42%，以及失能工傷（lost-time injuries）降低 100%。我們主要透過讓所有員工參與全廠安全計畫來達成這些成果。

These programs include daily toolbox talks, plant stand downs when incidents occur and immediate investigations and corrective actions. The safety of our employees is our #1 priority and I am pleased with our progress.

這些計畫包括每日工具箱會議（toolbox talks）、發生事件時的全廠停工宣導（stand downs），以及立即的調查與矯正措施。員工安全是我們的第一優先，我對我們的進展感到滿意。

Net sales for the Air and Liquid Processing segment for the second quarter ended June 30, 2019, were comparable to prior year. Net sales for the second quarter compared favorably with that of the first quarter. The 7.9% improvement quarter-over-quarter was led by increases in sales of custom heat exchangers and custom centrifugal pumps.

截至 2019 年 6 月 30 日止第二季，空氣與液體處理事業部的淨銷售額與去年同期相當。第二季淨銷售額相較第一季表現更佳。季對季 7.9% 的改善主要由客製化熱交換器與客製化離心泵銷售增加所帶動。

The segment's backlog as of June 30, 2019, approximated $53 million, which compares favorably to approximately $44.4 million at December 31, 2018, and approximately $50.2 million at June 30, 2018.

截至 2019 年 6 月 30 日，該事業部的在手訂單（backlog）約為 5,300 萬美元，優於 2018 年 12 月 31 日約 4,440 萬美元，以及 2018 年 6 月 30 日約 5,020 萬美元。

The current backlog remains close to the highest level the segment's backlog has been in 10 years. The increase over the prior periods is primarily attributable to an increase in orders for centrifugal pumps for the U.S. Navy. The manufacturing process improvement initiative is moving forward at each operation. Although we are at the early stages of the implementation, we already can see measured positive results -- can see and measure positive results in both labor efficiencies and material utilization. The hands-on engagement of all levels of employees at each operation is essential to the success and sustainability of this program.

目前在手訂單仍接近該事業部過去 10 年來的最高水準。相較前期的增加，主要歸因於美國海軍離心泵訂單增加。製造流程改善倡議正在各營運據點推進。雖然仍處於導入初期，我們已經能看到並量化正面成果——在勞動效率與材料利用率兩方面都能看見並衡量到正向結果。各營運據點各層級員工的親身投入，對此計畫的成功與可持續性至關重要。

We continue to focus on increasing revenues of the segment by growing our market share in existing markets and entering new markets while improving margins through increasing material utilization and labor efficiencies.

我們持續聚焦於透過在既有市場提升市占率並進入新市場來增加該事業部營收，同時藉由提升材料利用率與勞動效率來改善毛利率。

Thank you, Terry. With that, I'd like to hand the call over to our CFO, Mike McAuley, to review our financial results for the quarter in more detail. Mike?

謝謝你，Terry。接下來，我想把電話交給我們的財務長 Mike McAuley，請他更詳細地回顧本季財務結果。Mike？

Thank you, Brett. Good morning, everyone, and thank you for joining our call today. My commentary today contains the use of certain non-GAAP measures. So I refer you to our disclosures regarding non-GAAP measures and the related non-GAAP financial measures reconciliation schedule, included in this morning's earnings release.

謝謝你，Brett。各位早安，感謝大家今天加入我們的電話會議。我今天的評論將使用某些非 GAAP 指標。因此請參閱我們今早財報新聞稿中所載之非 GAAP 指標相關揭露，以及相關非 GAAP 財務指標調節表。

I'd like to focus on our Q2 results this morning, a discussion of the year-to-date results has included in today's earnings release and in our Form 10-Q filed yesterday.

今天早上我將聚焦於我們第二季的結果；年初至今的結果討論已包含在今天的財報新聞稿中，以及我們昨日提交的 Form 10-Q 之中。

Ampco's net sales from continuing operations for the second quarter of 2019 were $102.5 million. This compares to net sales from continuing operations for the second quarter of 2018 of $118.4 million. Net sales in the Forged and Cast Engineered Products segment declined 16% compared to the prior year period, primarily due to a lower volume of sales of forged engineered products to the oil and gas industry.

Ampco 於 2019 年第二季持續營業單位的淨銷售額為 1.025 億美元。相較之下，2018 年第二季持續營業單位的淨銷售額為 1.184 億美元。鍛造與鑄造工程產品事業部的淨銷售額較去年同期下滑 16%，主要因對油氣產業的鍛造工程產品銷售量較低。

Net sales for the Air and Liquid Processing segment for the second quarter 2019 were comparable to prior year. I'll cover more segment level details in a moment.

2019 年第二季空氣與液體處理事業部的淨銷售額與去年同期相當。我稍後會再說明更多事業部層級的細節。

Gross profit as a percentage of net sales was 17.5% for the second quarter of 2019 versus 16.5% for the second quarter of 2018. The 100 basis point improvement is primarily due to better pricing for mill rolls and operating efficiencies within the Forged and Cast Engineered Products segments, partly offset by the effects of lower production volumes for forged engineered products and a shift in mix for the Air and Liquid Processing segment.

2019 年第二季毛利率（占淨銷售額比重）為 17.5%，相較 2018 年第二季為 16.5%。提升 100 個基點主要來自軋輥（mill rolls）較佳的定價，以及鍛造與鑄造工程產品事業部的營運效率提升；但部分被鍛造工程產品產量下降的影響，以及空氣與液體處理事業部產品組合變動所抵銷。

Selling and administrative expenses of $13.9 million, or 13.6% of net sales for the second quarter of 2019, were down compared to $14.3 million or 12.1% of net sales for the second quarter of 2018.

2019 年第二季銷售及管理費用為 1,390 萬美元，占淨銷售額 13.6%，較 2018 年第二季的 1,430 萬美元（占淨銷售額 12.1%）下降。

Even though we recognized a bad debt expense of $1.4 million for a British customer who filed for bankruptcy during the quarter, and we absorbed some higher professional fees associated with our restructuring plans in Q2, we were able to show a year-over-year reduction in SG&A for the quarter, due in part to our reduction in force actions earlier in the year as well as some volume-driven lower commission expenses.

儘管本季我們認列一位於英國、在本季申請破產之客戶的 140 萬美元呆帳費用，且承擔了與第二季重整計畫相關的較高專業服務費用，我們仍能呈現本季 SG&A 年對年下降；部分原因是我們年初採取的裁員措施，以及因銷量驅動而降低的佣金費用。

Depreciation and amortization expense of $4.7 million for the second quarter of 2019 was down compared to $5.4 million for the second quarter of 2018, due in part to the impairment charge recorded in Q1 to write the assets of our Avonmore, Pennsylvania, facility down to their expected fair value.

2019 年第二季折舊與攤銷費用為 470 萬美元，較 2018 年第二季的 540 萬美元下降；部分原因是第一季認列減損費用，將我們位於賓夕法尼亞州 Avonmore 廠的資產帳面價值調降至其預期公允價值。

Loss from continuing operations on an as-reported GAAP basis for the second quarter of 2019 was $0.7 million. This compares to a loss from continuing operations in the prior year quarter of $0.2 million, the decline being driven primarily by the current period bad debt expense.

2019 年第二季按 GAAP（如實報導）基礎計算之持續營業單位虧損為 70 萬美元。相較去年同期持續營業單位虧損 20 萬美元；下滑主要由本期呆帳費用所致。

In addition, the corporation continued to incur excess costs for operation of the Avonmore cast roll manufacturing facility, which are not expected to continue after its sale as well as more restructuring-related costs incurred during the quarter. Excluding the bad debt expense, the restructuring-related costs and the estimated temporary excess costs of the Avonmore facility, the corporation had positive adjusted income from continuing operations of $2.6 million in the second quarter of 2019.

此外，公司仍持續承擔 Avonmore 鑄輥製造廠營運的超額成本；該等成本在出售後預期不會持續發生，且本季亦發生更多與重整相關的成本。排除呆帳費用、重整相關成本，以及 Avonmore 廠估計之暫時性超額成本後，公司於 2019 年第二季持續營業單位的調整後收益為正，達 260 萬美元。

This reflects an improvement of $1.2 million compared to the prior year quarter on the same basis and is reflective of the manufacturing efficiencies, higher pricing and lower overhead costs in the underlying business.

以相同基礎計算，較去年同期改善 120 萬美元，反映基礎業務的製造效率提升、較高定價以及較低的間接費用。

Other income expense net improved for the second quarter of 2019 when compared to the prior year quarter, primarily due to a dividend of approximately $1.4 million received from our cast roll Chinese joint venture during the quarter.

2019 年第二季其他收益（費用）淨額較去年同期改善，主要因本季自我們的鑄輥中國合資企業收到約 140 萬美元股利。

The income tax provision for the current year quarter was comparable to the prior year amount and includes income taxes associated with our profitable operations, whereas we continue to record valuation allowances against the deferred tax assets of the majority of the corporation's operations.

本年度本季所得稅費用與去年同期相當，包含我們獲利營運所產生的所得稅；同時，我們仍持續就公司大部分營運的遞延所得稅資產認列評價備抵（valuation allowances）。

As a result, the corporation reported a GAAP net loss from continuing operations of $200,000 or $0.02 per common share for the second quarter of 2019 compared to a net loss of $1 million or $0.08 per common share for the second quarter of 2018. Note that the net loss from continuing operations for the second quarter of 2019 includes over $0.12 per share for the impacts of both the bad debt expense and the $200,000 of incremental restructuring-related costs, I previously mentioned.

因此，公司於 2019 年第二季按 GAAP 報告之持續營業單位淨損為 20 萬美元，或每股普通股虧損 0.02 美元；相較 2018 年第二季淨損 100 萬美元，或每股普通股虧損 0.08 美元。請注意，2019 年第二季持續營業單位淨損包含每股超過 0.12 美元的影響，係來自前述呆帳費用以及 20 萬美元的額外重整相關成本。

The corporation also reported a net loss from discontinued operations, reflecting the operations of our Canadian subsidiary, ASW Steel, of $3.4 million or $0.27 per common share for the second quarter of 2019. This compares to a net loss of $1.7 million or $0.14 per common share for the second quarter of 2018.

公司亦報告停業單位淨損，反映我們加拿大子公司 ASW Steel 的營運，2019 年第二季為 340 萬美元，或每股普通股虧損 0.27 美元。相較之下，2018 年第二季淨損為 170 萬美元，或每股普通股虧損 0.14 美元。

The higher loss compared to prior year is due to lower demand of ingots used as feedstock for the production of forged engineered products for the oil and gas industry, and the impact of tariffs imposed by the U.S. on imports of primary steel, which began in June 2019 and were not lifted until May 19 of 2019.

與前一年相比虧損增加，係因用於石油與天然氣產業鍛造工程產品生產之原料鋼錠需求下降，以及美國對進口原生鋼徵收關稅之影響；該關稅自2019年6月開始實施，直到2019年5月19日才解除。

Now here's a bit more color on our business segment results. In the Forged and Cast Engineered Products segment, despite a 16% decline in sales in Q2, the segment's operating results were comparable to the prior year. Manufacturing efficiencies, better pricing and lower overhead costs helped to minimize the effect of the lower volume of forged engineered product sales to the oil and gas industry and the bad debt expense recorded during the quarter.

現在我再補充一些我們各業務部門業績的細節。在鍛造與鑄造工程產品部門，儘管第二季銷售額下滑16%，該部門的營運結果仍與前一年相當。製造效率提升、較佳的定價以及較低的間接費用，有助於將對石油與天然氣產業之鍛造工程產品銷售量下降的影響，以及本季認列的壞帳費用，降至最低。

Net sales for the Air and Liquid Processing segment were comparable to the second quarter of 2019 versus prior year, whereas the segment's operating income for the second quarter of 2019 decreased by 21% or $800,000 versus prior year, principally due to changes in product mix.

空氣與液體處理部門2019年第二季的淨銷售額與前一年同期相當；然而，該部門2019年第二季的營業利益較前一年下降21%，或80萬美元，主要係因產品組合變動所致。

Backlog at June 30, 2019, approximated $355 million, which is 2% higher than backlog at March 30 and 6% higher than prior year. We have seen higher order intake and improved pricing for mill rolls along with additional orders for U.S. Navy shipbuilders, offsetting the impact from the ongoing softening in demand for our forged engineered products in the oil and gas industry. Approximately $157 million of the current backlog is expected to ship after 2019.

截至2019年6月30日的在手訂單約為3.55億美元，較3月30日高2%，較前一年高6%。我們看到軋機輥（mill rolls）的接單量增加且定價改善，並且美國海軍造船廠的額外訂單亦有所增加，抵銷了石油與天然氣產業對我們鍛造工程產品需求持續走弱的影響。目前在手訂單中約有1.57億美元預期將於2019年之後出貨。

Now I will review some cash-related items for continuing operations. Accounts receivable at June 30, 2019 increased by $15.8 million compared to December 31, 2018, primarily attributable to higher second quarter 2019 sales when compared to the fourth quarter of 2018, but receivables were about flat with March levels. Inventories at June 30, 2019 were approximately flat overall with December 31, 2018, and with March 31, 2019 levels.

接下來我將回顧持續營運的一些與現金相關的項目。截至2019年6月30日的應收帳款較2018年12月31日增加1,580萬美元，主要係因2019年第二季銷售額較2018年第四季為高所致，但應收帳款與3月水準大致持平。截至2019年6月30日的存貨整體而言與2018年12月31日及2019年3月31日的水準大致持平。

Accounts payable at June 30, 2019 increased by $3 million compared to December 31, 2018, but decreased approximately $4 million compared to March 31, 2019. Capital expenditures for the second quarter of 2019 were $2.2 million for continuing operations and are $3.6 million year-to-date.

截至2019年6月30日的應付帳款較2018年12月31日增加300萬美元，但較2019年3月31日減少約400萬美元。2019年第二季持續營運的資本支出為220萬美元，年初至今為360萬美元。

Cash and cash equivalents for continuing operations of $6.5 million at June 30, decreased compared to the December 31, 2018 balance of $19.7 million for a specific reason, which, as I explained on the Q1 call, is because we instituted a springing lock box feature earlier this year, whereby domestic customer remittances are swept daily against the credit line in order to minimize borrowings. As a result, we are maintaining minimal domestic cash, and reported cash balance primarily reflects foreign cash.

截至6月30日，持續營運的現金及約當現金為650萬美元，較2018年12月31日的1,970萬美元餘額下降，原因很明確；如我在第一季電話會議中所說，我們今年稍早導入了「觸發式鎖箱（springing lock box）」機制，亦即將國內客戶匯款每日掃入（swept）並用以沖抵信用額度，以將借款降至最低。因此，我們維持的國內現金水位極低，所報告的現金餘額主要反映海外現金。

Drawings on the Ampco credit facility are $41.3 million at June 30, 2019, which is up just slightly versus the $40 million at June (sic) [December] 31. The increase compared to December 31, 2019 reflects the use of the credit facility as planned to repay the promissory notes and interest, which were retired back in the first quarter of 2019.

截至2019年6月30日，Ampco 信用融資額度的動用金額為4,130萬美元，僅較6月（誤稱）[12月]31日的4,000萬美元略增。相較於2019年12月31日的增加，反映我們按計畫使用該信用融資額度償還本票及利息；該等本票已於2019年第一季完成清償。

At June 30, 2019 in addition to the cash balance, the corporation also has remaining availability on its revolver of approximately $33 million.

截至2019年6月30日，除現金餘額外，本公司在循環信貸（revolver）項下尚有約3,300萬美元的可用額度。

I will now turn the call back over to Brett for some closing remarks.

現在我把電話交回給Brett，請他做一些結語。

Thank you, Mike. As we discussed on the call this morning, we continue to see the benefits of our operational improvement initiatives. We are aggressively pursuing additional restructuring opportunities to increase efficiencies in our business and facilitate further cost reduction actions.

謝謝你，Mike。如同我們今天早上在電話會議中討論的，我們持續看到營運改善計畫帶來的效益。我們正積極尋求更多重整機會，以提升業務效率並推動進一步的成本降低措施。

We are committed to continuing to rightsize our business operations to deliver consistent improved profitability. Thank you again for joining us for Ampco-Pittsburgh's conference call today. At this time, we will open up the line for your questions.

我們致力於持續調整（rightsize）營運規模，以提供穩定且持續改善的獲利能力。再次感謝各位參加今天 Ampco-Pittsburgh 的電話會議。接下來我們將開放提問。

(Operator Instructions) The first question comes from David Wright with Henry Investment Trust.

(接線員指示) 第一個問題來自 Henry Investment Trust 的 David Wright。

Thanks for all the commentary about the focus on safety, and great to hear about it. Question for Sam. Just can you clarify, in your remarks, you had a phrase, working to reduce arrears in Europe. What did that mean?

感謝你們對安全重點的各項說明，也很高興聽到相關進展。我有個問題想問 Sam。能否請你澄清一下，你在談話中提到「致力於降低歐洲的逾期（arrears）」。那是什麼意思？

Yes, that's just a past due number of rolls in Europe and we are able to reduce those by over 20% from beginning in the year till now. So it's just a delivery performance measure.

是的，那只是指歐洲有一些轧輥（rolls）逾期未交付的數量，而我們已能將其自年初至今降低超過20%。所以那只是交付績效的一項衡量指標。

Okay. So that's a term for delayed shipments?

了解。所以那是指延遲出貨的用語？

Correct.

正確。

Okay. Two-parter for Mike. The China -- the dividend from the China subsidiary, was that an extraordinary thing, a regular thing? And what was the circumstance behind it? And then separately, the bankruptcy in the U.K., the AR write-down, do they have a similar system whereby creditors get in line and try to get some sort of a recovery?

好的。 我有兩個問題想問 Mike。第一個，來自中國子公司的股利，那是一次性的、還是例行性的？以及其背後的情況是什麼？第二個，英國的破產案、應收帳款（AR）減記方面，他們是否也有類似的制度，讓債權人排隊並嘗試取得某種程度的回收？

Yes, David, the dividend that we received is from our Chinese cast roll joint venture. It's one of our cost basis affiliate. So it's not the one that we consolidate. But we have received consistent dividend, they have been about every year. But they haven't been this large. They've been lower than this. So this is a function of the improved performance of that joint venture company. So yes, it's a regular dividend every other year approximately, but larger this time.

是的，David，我們收到的股利來自我們在中國的鑄造轧輥合資企業。那是一家以成本法入帳的關聯企業。因此不是我們合併報表的那一家。不過我們確實持續收到股利，幾乎每年都有。只是過去沒有這麼大筆。以往都比這次少。所以這次主要是因為該合資公司營運表現改善。因此，是的，這大約每隔一年會有一次的例行股利，但這次金額較大。

On the customer bad debt expense, yes, there is a process of creditors. It's similar to U.S. bankruptcy. It's in the U.K. So if you're familiar with U.K. bankruptcy law, we were writing off that receivable, David. And it was a significant impact in the quarter, I mentioned at $1.4 million.

至於客戶壞帳費用，是的，確實有一套債權人程序。它與美國的破產程序類似。這是在英國。所以如果你熟悉英國破產法，我們當時是將那筆應收款項沖銷，David。而且對本季影響顯著，我提到金額為140萬美元。

And do you have the possibility of getting a recovery of some sort down the road?

那未來是否有可能在某個時間點取得某種回收？

It's possible. They have to go through the process. But we were an unsecured creditor, and as I understand it, British deal is moving in to potentially liquidation or finding an alternate buyer. So it's going to be a long process, I believe.

有可能。他們必須走完程序。但我們是無擔保債權人，而且據我了解，英國那邊的案件可能會走向清算，或尋找替代買家。所以我認為這會是一個漫長的過程。

(Operator Instructions) The conference has now been concluded. Thank you for attending today's presentation. You may now disconnect.

(接線員指示) 本次電話會議現在結束。感謝各位參加今天的簡報。您現在可以掛線。