Ampco-Pittsburgh Corp (AP) 2022 Q4 法說會逐字稿

Welcome to the Ampco-Pittsburgh Corporation Fourth Quarter 2022 Earnings Results Conference Call. (Operator Instructions) Please note this event is being recorded.

歡迎來到 Ampco-Pittsburgh Corporation 2022 年第四季度收益結果電話會議。 （操作員說明）請注意正在記錄此事件。

I would now like to turn the conference over to [Kim Knoch], Corporate Secretary. Please go ahead.

我現在想將會議轉交給公司秘書 [Kim Knoch]。請繼續。

Thank you, Betsy, and good morning to everyone joining us on today's fourth quarter 2022 conference call. Joining me today are Brett McBrayer, our Chief Executive Officer; and Mike McAuley, Senior Vice President and Chief Financial Officer. Also joining on the call today are Sam Lyon, President of Union Electric Steel Corporation; and Dave Anderson, President of Air & Liquid Systems Corporation.

謝謝你，Betsy，早上好，所有參加今天 2022 年第四季度電話會議的人。今天加入我的是我們的首席執行官 Brett McBrayer；高級副總裁兼首席財務官 Mike McAuley。今天加入電話會議的還有 Union Electric Steel Corporation 總裁 Sam Lyon；和空氣與液體系統公司總裁 Dave Anderson。

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 the corporation's control. The corporation's actual results may differ significantly from those projected or suggested in any forward-looking statements due to various risk 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.

在我們開始之前，我想提醒大家，本次電話會議的參與者可能會發表前瞻性陳述或評論，其中可能包括財務預測或公司計劃、目標、期望或意圖的其他陳述。這些事項涉及某些風險和不確定性，其中許多不在公司的控制範圍內。由於各種風險因素，包括公司最近提交的 10-K 表格和隨後向美國證券交易委員會提交的文件中討論的風險因素，公司的實際結果可能與任何前瞻性陳述中預測或建議的結果大不相同。我們不承擔任何更新或以其他方式公開發布對我們前瞻性陳述的任何修訂的義務。

A replay of this call will be posted on our website later today. To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com.

今天晚些時候將在我們的網站上發布此次通話的重播。要訪問收益發布或網絡廣播重播，請查閱我們網站 ampcopgh.com 的投資者部分。

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

有了這個，我將把電話轉給 Ampco-Pittsburgh 的首席執行官 Brett McBrayer。布雷特？

Thank you, Kim. Good morning, and thank you for joining our call. As shared in today's press release, Ampco-Pittsburgh recorded an operating income of $0.9 million in the fourth quarter of 2022, and a full year 2022 operating income of $2.8 million, with a full year EPS of $0.18 per share. Our fourth quarter sales improved by 11% over the prior year quarter, and full year 2022 sales were up 13% from 2021. As at the end of 2022, our backlog is up 26% versus the prior year and 11% versus the prior quarter.

謝謝你，金。早上好，感謝您加入我們的電話會議。正如在今天的新聞稿中分享的那樣，Ampco-Pittsburgh 在 2022 年第四季度的營業收入為 90 萬美元，2022 年全年營業收入為 280 萬美元，全年每股收益為 0.18 美元。我們第四季度的銷售額比去年同期增長了 11%，2022 年全年銷售額比 2021 年增長了 13%。截至 2022 年底，我們的積壓訂單比去年同期增長了 26%，比上一季度增長了 11% .

Successful pricing actions continue to be taken in the Forged and Cast Engineered Products segment to combat core inflation. Energy & Transportation has been added to our surcharge mechanism and now covers over 80% of our backlog. The exciting transformation of our North American fixed assets in the Forged and Cast Engineered Products segment continues to progress, with our first piece of new equipment installed this quarter. We are on track to complete the new equipment installations this year.

鍛造和鑄造工程產品部門繼續採取成功的定價行動，以對抗核心通脹。能源和運輸已添加到我們的附加費機制中，現在涵蓋了我們 80% 以上的積壓訂單。我們在鍛造和鑄造工程產品領域的北美固定資產的激動人心的轉型繼續取得進展，本季度安裝了我們的第一台新設備。我們有望在今年完成新設備的安裝。

The impact of the war in Ukraine and the softness in the European market continues to be a headwind for our foreign assets in the Forged and Cast Engineered Products segment. We are encouraged by domestic demand for our products, which remains robust. Our Air & Liquids segment's growth strategy continues with record profits and backlog achieved in 2022. Suppliers to naval shipyards continue to struggle resulting in a continuation of delays for our fluid pump products. We believe these bottlenecks will be resolved as we progress through the year.

烏克蘭戰爭的影響和歐洲市場的疲軟繼續對我們在鍛造和鑄造工程產品領域的海外資產構成不利影響。國內對我們產品的需求依然強勁，令我們感到鼓舞。我們的空氣和液體部門繼續實施增長戰略，2022 年實現了創紀錄的利潤和積壓。海軍造船廠的供應商繼續掙扎，導致我們的流體泵產品持續延誤。我們相信，隨著這一年的進展，這些瓶頸將得到解決。

Recordable and lost time rates improved dramatically in 2022 across our global operations. The engagement of our workforce and their actions to improve our work environment have been impressive as we continue to pursue a goal of 0 injuries in our workplaces around the globe.

2022 年，我們全球業務的可記錄和誤工率顯著提高。隨著我們繼續追求全球工作場所零傷害的目標，我們員工的參與和他們為改善我們的工作環境而採取的行動令人印象深刻。

David Anderson, President of Air & Liquid Systems will now discuss his segment's performance in more detail. Dave?

Air & Liquid Systems 總裁 David Anderson 現在將更詳細地討論其部門的表現。戴夫？

Thank you, Brett. Good morning. As I've discussed on previous calls, 2022 was the launch of our new multiyear strategic growth plan. The results of the first year of the plan were extremely positive, and I would like to thank the Air & Liquid employees for all the work they've done to implement our new growth strategies.

謝謝你，布雷特。早上好。正如我在之前的電話會議上所討論的那樣，2022 年是我們新的多年戰略增長計劃的啟動。該計劃第一年的結果非常積極，我要感謝 Air & Liquid 員工為實施我們的新增長戰略所做的所有工作。

In 2022, we achieved the highest level of sales orders in our history. We also achieved the highest backlog in our history. We increased our internal and external sales force, and as a result, our sales orders increased 40% compared to the prior year. In 2022, every quarter resulted in a new record backlog as our backlog ended the year $48 million higher than 2021. That represents a 69% increase and means we entered 2023 in a significantly stronger position than a year ago.

2022 年，我們實現了歷史最高水平的銷售訂單。我們還實現了歷史上最高的積壓。我們增加了內部和外部銷售人員，因此我們的銷售訂單比上一年增加了 40%。 2022 年，每個季度的積壓訂單都創下新紀錄，因為我們在年底的積壓訂單比 2021 年多了 4800 萬美元。這意味著增長了 69%，這意味著我們進入 2023 年的情況比一年前要好得多。

Along with our increase in sales orders, we also increased our manufacturing capabilities by finding new ways to hire and retain quality employees. Sales in Q4 increased 20% compared to prior year, while full year sales increased 7% versus prior year. Increased sales were primarily due to higher shipments of heat exchangers and custom air handling units.

隨著我們銷售訂單的增加，我們還通過尋找新的方法來僱用和留住高素質的員工，從而提高了我們的製造能力。第四季度的銷售額與去年同期相比增長了 20%，而全年銷售額與去年同期相比增長了 7%。銷售額增加主要是由於熱交換器和定制空氣處理裝置的出貨量增加。

Full year operating income for 2022 was $13.7 million versus an income of $2.6 million in the prior year. $8.9 million of the improvement was related to asbestos expenses and credits. Full year operating income, excluding asbestos, was $11.5 million versus $9.3 million in the prior year. The primary reason for the improvement was the higher sales levels in 2022. Air & Liquid entered 2023 with a record backlog, a significantly stronger sales organization and the increased manufacturing capabilities to allow us to continue to move forward with our growth plans.

2022 年全年營業收入為 1370 萬美元，而上一年的收入為 260 萬美元。 890 萬美元的改善與石棉費用和信貸有關。不包括石棉在內的全年營業收入為 1150 萬美元，而上一年為 930 萬美元。改善的主要原因是 2022 年更高的銷售水平。進入 2023 年，Air & Liquid 以創紀錄的積壓、顯著更強大的銷售組織和增強的製造能力使我們能夠繼續推進我們的增長計劃。

Thank you, Dave. I will now turn the call over to Sam Lyon, President of our Forged and Cast Engineered Products segment. Sam?

謝謝你，戴夫。我現在將把電話轉給我們鍛造和鑄造工程產品部門的總裁 Sam Lyon。薩姆？

Thanks, Brett, and good morning. Full year operating income in the Forged and Cast Engineered Products segment declined for Q4 and full year 2022 compared to the prior year. Although our pricing initiatives for surcharge and base increases -- price increases were successful, 2022 results were impacted primarily by general core inflation exceeding the base price increases and lower volume in the European cast group. The fourth quarter was also affected by an equipment outage in our forged large rolls work sale deferring approximately $3 million of sales into 2023 and causing unfavorable cost absorption in Q4. As discussed in prior calls, our Europe plants experienced significant headwinds with unprecedented instability of energy in the face of -- instability of energy price in the face of the Russian-Ukraine conflict. We began to see some relief in the latter part of 2022, which continues into 2023 as energy prices have retracted significantly due to government controls and a warm winter.

謝謝，布雷特，早上好。與上一年相比，第四季度和 2022 年全年鍛造和鑄造工程產品部門的全年營業收入均有所下降。儘管我們針對附加費和基本價格上漲的定價舉措——價格上漲是成功的，但 2022 年的業績主要受到總體核心通貨膨脹超過基本價格上漲和歐洲鑄造集團銷量下降的影響。第四季度還受到我們鍛造大型軋輥加工銷售中設備停機的影響，將約 300 萬美元的銷售額推遲到 2023 年，並導致第四季度的成本吸收不利。正如之前的電話會議所討論的那樣，我們的歐洲工廠經歷了巨大的逆風，在面對俄羅斯與烏克蘭衝突時能源價格不穩定的情況下，能源出現了前所未有的不穩定。我們在 2022 年下半年開始看到一些緩解，這種情況一直持續到 2023 年，因為政府控制和溫暖的冬天導致能源價格大幅回落。

Our sales team was successful in negotiating energy and transportation surcharges in 2022. As a result, over 80% of our backlog has surcharges for raw materials, energy and transportation. Energy hedges were executed to mitigate the risk for the remaining 20%.

我們的銷售團隊在 2022 年成功談判了能源和運輸附加費。因此，我們 80% 以上的積壓訂單都包含原材料、能源和運輸附加費。執行能源對沖以降低剩餘 20% 的風險。

In response to the general inflation under recovery outside of surcharge items, we announced in February further base price increases of 10% to 15% for forged and cast rolls. Our capital revitalization program in the U.S. continues to progress. We have completed factory acceptance testing on 4 of the 5 machines, with the last scheduled for late April. The first machine is nearing final assembly in our Burgettstown, Pennsylvania facility and the second machine has hit the U.S. shores. Factory test results have gone better than expected. Site acceptance of the first machine is scheduled for April, with all machines commissioned by year's end.

為了應對除附加費項目外的總體通貨膨脹，我們在 2 月份宣布將鍛造和鑄軋輥的基本價格進一步上調 10% 至 15%。我們在美國的資本振興計劃繼續取得進展。我們已經完成了 5 台機器中的 4 台的工廠驗收測試，最後一次計劃在 4 月下旬進行。第一台機器即將在我們位於賓夕法尼亞州伯吉茨敦的工廠進行總裝，第二台機器已抵達美國海岸。工廠測試結果比預期的要好。第一台機器的現場驗收定於 4 月進行，所有機器都將在年底前投入使用。

The Forged & Cast segment's backlog increased by 11% over the third quarter of 2022 and 13% over the fourth quarter of 2021. The backlog reflects a strong roll market, especially in the U.S. as customers increasingly favor a domestic supply chain in light of the geopolitical tensions in Europe. Partially offsetting the strong roll demand is the FEP backlog, which has softened over prior periods due to distributors working through high year-end inventories, increased imports and a 2-year low in frac fleets. We have recently seen an increase in quoting activity for oil and gas and distribution bar.

鍛造和鑄造部門的積壓訂單比 2022 年第三季度增加了 11%，比 2021 年第四季度增加了 13%。積壓訂單反映了強勁的軋輥市場，尤其是在美國，因為客戶越來越青睞國內供應鏈歐洲的地緣政治緊張局勢。 FEP 積壓部分抵消了強勁的滾動需求，由於分銷商處理年終高庫存、進口增加以及壓裂船隊的 2 年低點，FEP 積壓較前期有所減少。我們最近看到石油和天然氣以及分銷酒吧的報價活動有所增加。

The flat rolled industry boasts positive market outlook as evidenced by recent announcements of restarts of idle blast furnaces across multiple steel manufacturers. Across North America and Europe, we're seeing an increase in hot-rolled coil prices indicative of a strengthening market. Furthermore, U.S. Steel, Nucor Steel Dynamics and others have announced multibillion-dollar investments and new site construction, opening up new avenues and opportunities for our product.

多家鋼鐵製造商最近宣布重啟閒置高爐，證明了平板軋製行業的市場前景樂觀。在北美和歐洲，我們看到熱軋卷材價格上漲表明市場走強。此外，美國鋼鐵公司、Nucor Steel Dynamics 和其他公司已宣布數十億美元的投資和新場地建設，為我們的產品開闢了新的途徑和機會。

We have just received an initial -- the initial mill fill order for the new aluminum dynamics plant that is being built in Columbus, Mississippi.

我們剛剛收到了一份初始訂單 - 正在密西西比州哥倫布市建造的新鋁動力工廠的初始工廠填充訂單。

In summary, our backlogs are increasing, pricing actions are holding, and our customers are more bullish than in 2022.

總之，我們的積壓訂單在增加，定價行動仍在進行，我們的客戶比 2022 年更加樂觀。

Thank you, Sam. At this time, Mike McAuley, our Chief Financial Officer, will share more detail regarding our financial performance for the quarter. Mike?

謝謝你，山姆。此時，我們的首席財務官 Mike McAuley 將分享有關本季度財務業績的更多詳細信息。麥克風？

Thank you, Brett. As shared in the press release, Ampco-Pittsburgh recorded net income for the 12 months ended December 31, 2022, of $3.4 million or $0.18 per diluted share. This compares to a net loss for the 12 months ended December 31, 2021, of $3.9 million or $0.20 per diluted share.

謝謝你，布雷特。正如新聞稿中所分享的那樣，Ampco-Pittsburgh 在截至 2022 年 12 月 31 日的 12 個月中錄得淨收入 340 萬美元或每股攤薄收益 0.18 美元。相比之下，截至 2021 年 12 月 31 日止的 12 個月淨虧損為 390 萬美元或攤薄後每股虧損 0.20 美元。

Now I'd like to discuss a few special items that are important to understanding the reported results. First, effective December 31, 2022, the corporation changed its method of accounting for the cost of its domestic inventories from the LIFO method to the FIFO method. At December 31, 2021, approximately 35% of the corporation's inventories were accounted for using the LIFO method. And at December 31, 2022, approximately 42% of the corporation's inventories would have been accounted for using a LIFO method had the corporation not changed. The corporation believes the change to the FIFO method of inventory valuation is preferable as it provides a better matching of costs with the physical flow of goods, standardizes the corporation's inventory valuation methodology among the locations and improves comparability with industry peers.

現在我想討論一些對理解報告結果很重要的特殊項目。首先，自 2022 年 12 月 31 日起，公司將其國內存貨成本的核算方法從後進先出法改為先進先出法。截至 2021 年 12 月 31 日，公司約 35% 的存貨採用後進先出法入賬。如果公司沒有發生變化，到 2022 年 12 月 31 日，大約 42% 的公司存貨將使用後進先出法核算。該公司認為，改變存貨估值的 FIFO 方法是更可取的，因為它提供了更好的成本與貨物實際流動的匹配，標準化了公司在不同地點的存貨估值方法，並提高了與行業同行的可比性。

A change from the LIFO method to the FIFO method is considered a change in accounting principle, requiring all periods to be restated as if the corporation had used the FIFO method to value its domestic inventories for those periods and with a cumulative adjustment recorded to retain deficit net of tax of the earliest year presented, in this case, January 1, 2021, as it relates to our forthcoming Form 10-K.

從 LIFO 方法到 FIFO 方法的變化被認為是會計原則的變化，要求所有期間都被重述，就好像公司在這些期間使用 FIFO 方法對其國內庫存進行估值，並記錄累積調整以保留赤字扣除提交的最早年份的稅款，在本例中為 2021 年 1 月 1 日，因為它與我們即將發布的 10-K 表格有關。

This change reduced net loss for the 3 and 12 months ended December 31, 2021, by $4.9 million and $8.8 million, respectively, and the cumulative change to opening retained deficit on the 2021 balance sheet net of tax, was an improvement of $11.5 million. More details on this change, including quarterly restatements of prior periods presented, will be included in the corporation's 2022 Form 10-K, which we expect to file this evening or soon thereafter.

這一變化使截至 2021 年 12 月 31 日的第 3 個月和第 12 個月的淨虧損分別減少了 490 萬美元和 880 萬美元，2021 年資產負債表稅後淨額期初留存赤字的累計變化減少了 1150 萬美元。有關此更改的更多詳細信息，包括所提交的先前期間的季度重述，將包含在公司的 2022 年 10-K 表格中，我們預計將在今晚或之後不久提交該表格。

In terms of other significant items affecting comparability, corporation recorded a $2.2 million benefit in the fourth quarter 2022 related to a reduction in the estimated long-term defense cost portion of our asbestos liability. In contrast, the corporation recorded a $6.7 million charge in the fourth quarter of 2021 in connection with last year's revaluation of the total asbestos liabilities and related insurance receivables. Both of these items are reflected in the Air and Liquid Processing segment's results. Ampco's net sales for the fourth quarter of 2022 were $93.5 million, an increase of approximately 11% compared to net sales for the fourth quarter of 2021. Net sales in the Air and Liquid Processing segment grew 20%, driven by higher shipments of air handling units and heat exchange coils, which more than offset declines in sales of centrifugal pumps from project delays associated with the ongoing supply chain issues at U.S. Navy ship builders.

就影響可比性的其他重要項目而言，公司在 2022 年第四季度記錄了 220 萬美元的收益，這與我們石棉負債的估計長期防禦成本部分的減少有關。相比之下，該公司在 2021 年第四季度記錄了 670 萬美元的費用，與去年對石棉負債總額和相關保險應收款的重估有關。這兩項都反映在空氣和液體處理部門的業績中。 Ampco 2022 年第四季度的淨銷售額為 9350 萬美元，與 2021 年第四季度的淨銷售額相比增長了約 11%。空氣和液體處理部門的淨銷售額增長了 20%，這得益於空氣處理出貨量的增加機組和熱交換盤管，這大大抵消了與美國海軍造船廠持續供應鏈問題相關的項目延遲導致的離心泵銷量下降。

Net sales for the Forged and Cast Engineered Products segment in the fourth quarter of 2022 were approximately 8% higher than the prior year period, primarily due to higher pricing and variable index surcharges as a result of higher raw material, energy and transportation costs, offset in part by an unfavorable currency translation effect.

鍛造和鑄造工程產品部門在 2022 年第四季度的淨銷售額比去年同期增長約 8%，這主要是由於原材料、能源和運輸成本增加導致定價和可變指數附加費增加，抵消了部分原因是不利的貨幣換算效應。

Income from operations for the fourth quarter of 2022 was $0.9 million. This compares to a loss from operations in the prior year quarter of $7.7 million. The 3 months ended December 31, 2022, include the asbestos-related benefit of $2.2 million I previously mentioned. Primary change items are the asbestos-related items I mentioned earlier. Air and Liquid Processing segment's operating results also improved primarily due to the higher volume of shipments. The Forged and Cast Engineered Products segment's operating results declined for the fourth quarter of 2022 compared to prior year, primarily reflecting higher cost of production not being fully offset by the effect of price increases.

2022 年第四季度的運營收入為 90 萬美元。相比之下，去年同期的運營虧損為 770 萬美元。截至 2022 年 12 月 31 日的 3 個月，包括我之前提到的 220 萬美元的石棉相關福利。主要變化項目是我之前提到的與石棉相關的項目。空氣和液體處理部門的經營業績也有所改善，這主要是由於出貨量增加。鍛造和鑄造工程產品部門 2022 年第四季度的經營業績與上年同期相比有所下降，這主要反映了較高的生產成本並未被價格上漲的影響完全抵消。

Interest expense for the quarter increased compared to the prior year as a result of the rise in total debt and interest rates. And other income net declined for the fourth quarter of 2022 when compared to the prior year quarter, primarily due to larger foreign exchange transaction losses. At the bottom line, the corporation reported a net loss attributable to Ampco-Pittsburgh of $0.5 million or $0.02 per diluted share for the fourth quarter of 2022, compared to a net loss of $7.4 million or $0.39 per diluted share for the fourth quarter of 2021.

由於總債務和利率上升，本季度的利息支出較上年同期有所增加。與去年同期相比，2022 年第四季度其他收入淨額下降，主要原因是外匯交易損失較大。最重要的是，該公司報告稱，2022 年第四季度歸屬於 Ampco-Pittsburgh 的淨虧損為 50 萬美元或攤薄後每股 0.02 美元，而 2021 年第四季度的淨虧損為 740 萬美元或攤薄後每股 0.39 美元.

Backlog at December 31, 2022, of $369 million increased approximately 11% sequentially and rose 26% from a year ago. As Sam and Dave indicated, backlog for the Forged and Cast Engineered Products segment increased approximately 11% sequentially and approximately 13% year-over-year, while backlog for the Air and Liquid Processing segment continues to be at record highs and has increased 69% versus prior year.

截至 2022 年 12 月 31 日，積壓訂單為 3.69 億美元，環比增長約 11%，同比增長 26%。正如 Sam 和 Dave 所指出的，鍛造和鑄造工程產品部門的積壓訂單環比增長約 11%，同比增長約 13%，而空氣和液體處理部門的積壓訂單繼續創歷史新高，增長了 69%與上一年相比。

Net cash flows used by operating activities was approximately $7.5 million for Q4 2022, primarily in support of working capital. Capital expenditures for the fourth quarter of 2022 were $3.7 million and were $16.7 million for the year, primarily for the Forged and Cast Engineered Products segment.

2022 年第四季度，經營活動使用的現金流量淨額約為 750 萬美元，主要用於支持營運資金。 2022 年第四季度的資本支出為 370 萬美元，全年為 1670 萬美元，主要用於鍛造和鑄造工程產品部門。

At December 31, 2022, corporation's balance sheet and liquidity position included cash on hand of $8.7 million and undrawn availability on our revolving credit facility of $28.4 million.

截至 2022 年 12 月 31 日，公司的資產負債表和流動性狀況包括手頭現金 870 萬美元和我們循環信貸額度的未提取可用性 2840 萬美元。

Operator, at this time, we would now like to open the line for questions.

接線員，此時，我們現在想打開問題熱線。

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

（操作員說明）今天的第一個問題來自亨利投資信託公司的大衛賴特。

I think I got 1 for Mike, 1 for Sam -- and I got 2 from Mike, 1 for Sam and I think 1 for Dave. On the balance sheet, Mike, with the K not out yet, can you tell us what was long-term debt at year-end?

我想邁克得了 1 分，山姆得了 1 分——邁克得了 2 分，山姆得了 1 分，戴夫得了 1 分。在資產負債表上，邁克，K 還沒有出來，你能告訴我們年底的長期債務是多少嗎？

David, long-term debt is $105.5 million.

大衛，長期債務是 1.055 億美元。

I'm sorry.

對不起。

Sorry, Total debt is $105.5 million.

抱歉，總債務為 1.055 億美元。

And that includes current portion?

這包括當前部分？

That includes current portion.

這包括當前部分。

Okay. And then on the LIFO to FIFO, effective the 2022 operating numbers, is that all FIFO and clean, what you're reporting for 2022?

好的。然後在 LIFO 到 FIFO 上，有效的 2022 年運營數字，是所有 FIFO 和乾淨的，你報告的 2022 年是什麼？

Yes. And the comparative 2021 has been restated. so; everything is on a FIFO basis.

是的。比較 2021 年已經重述。所以;一切都是先進先出的基礎上。

Okay. So 2022 is clean and all of the adjustments will be put back to the 2021 year?

好的。那麼 2022 年是乾淨的，所有的調整都會回到 2021 年嗎？

Well, the 2022 is, as you say, clean with respect to being reported on a FIFO basis. The comparative 2021 will likewise because we have to restate all periods on the same method that we present in the 10-K and because we do a comparative for 2021 for income statement, for example, that income statement will likewise be, like you say, clean or total FIFO basis. And then what we do is for all periods -- all periods prior cumulative effect, as though all history would have been on FIFO, is reported in opening retained earnings on the 2021 balance sheet.

嗯，正如你所說，2022 年在 FIFO 基礎上進行報告是乾淨的。比較 2021 年同樣是因為我們必須按照我們在 10-K 中提出的相同方法重述所有期間，並且因為我們對 2021 年的損益表進行了比較，例如，損益表同樣會像你說的那樣，乾淨或完全先進先出的基礎。然後我們所做的是針對所有時期——所有時期之前的累積效應，就好像所有歷史都在 FIFO 上一樣，在 2021 年資產負債表的期初留存收益中報告。

So if I went back and took, say, the second quarter of 2022 and looked at that gross margin and that cost of sales, those numbers are the numbers -- you don't have to change those?

因此，如果我回頭看看 2022 年第二季度的毛利率和銷售成本，這些數字就是數字——你不必改變它們嗎？

We will restate all quarters, and it will be out later today.

我們將重述所有方面，並將在今天晚些時候發布。

Okay. A question for Sam. On the on the price increases, given that the lag time between the customer's order, the rolls for delivery sometime down the road. When roughly is the income statement going to start seeing the effect, or I don't know, I guess, I should say, the benefit of the base price increases?

好的。山姆的問題。在價格上漲的情況下，考慮到客戶訂單之間的滯後時間，交貨將在未來某個時間進行。損益表大概什麼時候開始看到效果，或者我不知道，我想，我應該說，基本價格上漲的好處？

But we had a basic increase going into this year of approximately 5% and the 10% to 15%, the majority of that will be 2024. So it will be a transactional business in '23, but most of the long-term contracts with the ArcelorMittal, U.S. Steel, Nucor, still that's all 2024.

但是我們今年的基本增長大約是 5% 和 10% 到 15%，其中大部分將是 2024 年。所以這將是 23 年的交易業務，但大部分長期合同與安賽樂米塔爾、美國鋼鐵、紐柯，到 2024 年仍然如此。

Okay. And then a question for Dave. How much of Buffalo Pumps business overall roughly is Navy, U.S. Navy?

好的。然後是戴夫的問題。美國海軍在 Buffalo Pumps 的總體業務中大致佔多少？

It's a little more than half, David. So slightly over 50%.

一半多一點，大衛。所以略高於 50%。

Okay. And then how much of that business is affected by shipyard building delays?

好的。那麼，有多少業務受到造船廠建設延誤的影響？

I would say 80% to 85% of that is shipyard business.

我會說其中 80% 到 85% 是船廠業務。

(Operator Instructions) Next question comes from [Gordon Thane] with retail.

（操作員說明）下一個問題來自零售業的 [Gordon Thane]。

I did make a small purchase of a long time, small investor, a retired employee -- federal employee, not Ampco-Pittsburgh. So my question is if the financial people were to do an estimate of the effect on cash and earnings of $0.02 a share dividend payable in the third or fourth quarter, a onetime dividend to bring us into a dividend stock category, which many mutual funds want, how would that -- would that be feasible?

我確實購買了一位長期的小投資者、一名退休僱員——聯邦僱員，而不是 Ampco-Pittsburgh。所以我的問題是，如果財務人員要估計第三季度或第四季度每股 0.02 美元的股息對現金和收益的影響，一次性股息將我們帶入股息股票類別，這是許多共同基金想要的，那將如何 - 這是否可行？

I can answer that. Thank you for your question. We stopped paying dividends in 2017 when the liquidity position needed attention. To return to dividend paying stock, that's certainly on our future agenda. At the moment, we are -- have significant investment plans and we're focused on profitability improvement, which means cash flow improvement. So for 2023, I think it would be difficult to consider restoration of dividend. But I think as we go forward in the future, I think that's definitely on the long-term thinking. It's not -- I don't think it's a near-term realistic possibility.

我可以回答。謝謝你的問題。 2017 年流動性狀況需要關注時，我們停止了派息。回到支付股息的股票，這肯定在我們未來的議程上。目前，我們有重要的投資計劃，我們專注於提高盈利能力，這意味著改善現金流。所以對於2023年，我認為很難考慮恢復分紅。但我認為，隨著我們未來的發展，我認為這絕對是長遠的考慮。這不是——我不認為這是近期的現實可能性。

The next question comes from Dennis Scannell with Rutabaga Capital Management.

下一個問題來自 Rutabaga Capital Management 的 Dennis Scannell。

Yes. Just a couple of quick things for me. I'm kind of interested particularly in Europe in demand on the rolls business and maybe pushbacks that -- well, if customers are giving you pushbacks in pricing, what's happening from a competitive standpoint in that market in terms of are your customers looking for suppliers outside of the European region that aren't as affected by the high and volatile energy prices? And then I have a couple of follow-ups.

是的。對我來說只是一些快速的事情。我特別感興趣的是歐洲對軋輥業務的需求以及可能的阻力 - 好吧，如果客戶在定價方面給你帶來阻力，那麼從該市場的競爭角度來看，你的客戶正在尋找供應商歐洲地區以外的國家是否不受能源價格高企和波動的影響？然後我有幾個後續行動。

Okay. The demand in Europe was mostly down because the steel demand and steel manufacturing in Europe was down. So those rolls go into the European market mostly as well as the U.S. market. So we just saw an overall decline in demand from that. Most of our competition on the roll side is in Europe. There's 10 to 15 kind of suppliers of cast rolls that reside in various countries inside of Europe. Our position, I think we addressed this on the last call, particularly in our U.K. plant, we were disadvantaged from an energy perspective and some of our competition had hedges in place that made them more advantageous. Those are expiring. And in conjunction with that as stated the energy prices have retracted most of the way back to where they were prior to the -- prior to the escalation from the war.

好的。歐洲的需求下降主要是因為歐洲的鋼鐵需求和鋼鐵製造下降。因此，這些卷主要進入歐洲市場以及美國市場。因此，我們剛剛看到需求整體下降。我們在軋輥方面的大部分競爭都在歐洲。歐洲各國有 10 到 15 家鑄輥供應商。我們的立場，我認為我們在上次電話會議上解決了這個問題，特別是在我們的英國工廠，從能源的角度來看，我們處於不利地位，我們的一些競爭對手已經採取了對沖措施，使他們更具優勢。那些快過期了。與此同時，如前所述，能源價格已大部分回落到戰爭升級之前的水平。

So we believe we're on a much more level playing field with where our competition was. The other competition that sometimes shows itself would be Japan or China, but the acceptance of Chinese rolls in the Western market is still very, very limited.

因此，我們相信我們與我們的競爭對手處在一個更加公平的競爭環境中。有時出現的另一個競爭者是日本或中國，但西方市場對中國卷的接受度仍然非常非常有限。

Yes, absolutely. So maybe just to stick on Europe for a bit. Would you say your market share in 2022 was stable? Or did you lose some share as just relative to the competition?

是的，一點沒錯。所以也許只是堅持歐洲一點。你會說你在2022年的市場份額是穩定的嗎？或者你是否只是因為競爭而失去了一些份額？

I'd say in '22, we lost a bit of share in particularly out of the U.K. The Sweden plant was stable. And now we're negotiating essentially 2024 volumes, most recent, [I don't] commit to anything, but most recent outlooks look more positive going forward.

我想說的是，在 22 年，我們失去了一些份額，尤其是在英國之外。瑞典工廠很穩定。現在我們正在談判基本上 2024 年的數量，最近，[我不]承諾任何事情，但最近的前景看起來更積極。

Excellent. Good, good. And then I think this would be for Mike, but can you talk a little bit about the capital spending for 2023, and then 2024, kind of what the budget looks like?

出色的。好好。然後我認為這是給邁克的，但你能談談 2023 年和 2024 年的資本支出嗎，預算是什麼樣的？

Yes, sure. We can talk about that. No, we're -- for the year, I think I quoted that in the script, but for the year, CapEx for the total corporation, we finished the year 2022.

是的，當然。我們可以談談。不，我們是——就這一年而言，我想我在劇本中引用了這一點，但就這一年而言，整個公司的資本支出，我們完成了 2022 年。

$16.7 million.

1670 萬美元。

$16.7 million will be a bit heavier, especially on the kind of the strategic domestic machining assets that we're putting in and some of the heat treat furnaces, we're going to see higher levels of CapEx in the next particularly Q2 and Q3 of this year, I predict. So we're going to see that bounce around between the quarters and be a bit elevated for 2023 relative to 2022. We didn't really give an outlook as far as that granular level of detail. But I think we'll see probably maximum CapEx in '23 and it's tapering '24, '25.

1670 萬美元會更重一些，尤其是在我們投入的戰略性國內機加工資產和一些熱處理爐方面，我們將在接下來的第二季度和第三季度看到更高水平的資本支出今年，我預測。因此，我們將看到這種情況在兩個季度之間反彈，並且 2023 年相對於 2022 年會略有上升。我們並沒有真正給出詳細程度的展望。但我認為我們可能會在 23 年看到最大的資本支出，並且在 24 年和 25 年逐漸減少。

So I mean, are we talking like $30 million in 2023? Or can you put a range on that?

所以我的意思是，我們是在談論 2023 年的 3000 萬美元嗎？或者你能給它一個範圍嗎？

Yes. We're not -- no, it's not going to be that high.

是的。我們不是 - 不，它不會那麼高。

Okay. Okay.

好的。好的。

Now what we're doing is we're managing sustaining CapEx with more of the replacement, the machinery that we're focused on putting in, it's replacing the older machinery. So we're trying to spend less on sustaining to afford our way through this program.

現在我們正在做的是，我們正在通過更多的更換來管理維持資本支出，我們專注於投入的機器，它正在更換舊機器。因此，我們正在努力減少維持費用，以支付我們通過該計劃的費用。

Right, right. And then thinking about once this capital spending, the strategic capital spending is done by year-end '23, can you give a sense of kind of where CapEx shakes out for '25 and beyond?

是的是的。然後想想一旦這種資本支出，戰略資本支出在 23 年底前完成，你能說說 25 年及以後的資本支出在哪裡嗎？

I'm sorry, for '24 and beyond?

對不起，24 歲及以後？

We're probably going to be in the $15 million range.

我們可能會在 1500 萬美元左右。

Okay Yes. That's helpful. And then -- go ahead...

好的，是的。這很有幫助。然後——繼續……

That's globally.

那是全球性的。

Yes. Right. No, absolutely. Good. No, helpful. And then I'm not sure -- so again, without having the K in front of me. So for the full year 2022, our operating cash flow I think you gave for the fourth quarter, but for the full year, where would that have shaken out?

是的。正確的。不，絕對。好的。不，有幫助。然後我不確定 - 再一次，沒有 K 在我面前。因此，對於 2022 年全年，我認為你給出了第四季度的運營現金流，但對於全年，它會在哪裡發生變化？

Cash flow from operating activities?

經營活動產生的現金流？

Right.

正確的。

It was a use of $27 million.

它使用了 2700 萬美元。

Yes.

是的。

And as we look into '23, we've got heavy capital spending, do you have any guidance in terms of how operating cash flow will look? I mean, again, we're hoping to have some improved profits. Hopefully, working capital won't be as much of a drag. Hopefully, what will be raw material prices?

當我們研究 23 年時，我們有大量的資本支出，您對運營現金流的情況有何指導？我的意思是，再一次，我們希望有一些提高的利潤。希望營運資金不會成為拖累。希望原材料價格是多少？

2022 was definitely a big working capital growth here. And as we all know, inflation really added to that. But as we look to 2023, if we just focus on operating cash flow because we already talked about CapEx, we should not be in that range. We will see higher sales, and it depends on the timing of those sales. If [Q4] winds up being a larger quarter, we may end the year with maybe a little bit on accounts receivable. But our game plan is to kind of control inventory through the year, and we don't really predict a large inventory growth. So we expect a much more moderated working capital position in '23 as compared to 2022. So we're not projecting a big use like that in '23.

2022 年絕對是營運資本的大幅增長。眾所周知，通貨膨脹確實加劇了這一點。但展望 2023 年，如果我們只關注運營現金流，因為我們已經談到了資本支出，那麼我們不應該在那個範圍內。我們將看到更高的銷售額，這取決於這些銷售的時機。如果 [Q4] 最終成為一個更大的季度，我們可能會在今年結束時有一些應收賬款。但我們的遊戲計劃是在某種程度上控制全年的庫存，我們並沒有真正預測庫存會大幅增長。因此，與 2022 年相比，我們預計 23 年的營運資金狀況要溫和得多。因此我們預計不會像 23 年那樣大量使用。

So would you go out on the limb to say that we're going to have positive operating cash flow in 2023?

那麼，您會冒險說我們將在 2023 年實現正的運營現金流嗎？

I think it will be a challenge. We do have higher sales.

我認為這將是一個挑戰。我們確實有更高的銷售額。

Yes, right. Right.

對，對。正確的。

And (inaudible) -- and it depends on the outlook for '24 for inventory because the long cycle times in the roll business especially, you got to build ahead. So I think it depends on where '24 is shaking out as we get through the year, but our challenge is to control the working capital.

並且（聽不清）——這取決於 24 年庫存的前景，因為特別是滾動業務的長周期時間，你必須提前構建。所以我認為這取決於 '24 在我們度過這一年時發生的變化，但我們的挑戰是控制營運資金。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Brett McBrayer for any closing remarks.

（操作員說明）我們的問答環節到此結束。我想將會議轉回給 Brett McBrayer 作閉幕詞。

Thank you, Betsy. I'm encouraged by our progress over the past year toward our goal of $450 million in revenue and double-digit EBITDA margins. The completion of our capital equipment investment in the U.S. this year will be a significant enabler as well as the growth initiatives we have underway in Air & Liquid Systems. I want to thank our employees for their tremendous work and dedication as we continue to transform Ampco-Pittsburgh.

謝謝你，貝琪。我對過去一年我們在實現 4.5 億美元收入和兩位數 EBITDA 利潤率目標方面取得的進展感到鼓舞。我們今年在美國完成的資本設備投資將是一個重要的推動因素，也是我們在空氣和液體系統方面正在進行的增長計劃。我要感謝我們的員工在我們繼續改造 Ampco-Pittsburgh 的過程中所做的巨大工作和奉獻。

I also want to thank our shareholders and our Board for your continued support of our efforts. We are confident in the actions we are taking and our expectations for much improved performance in our businesses. Thank you for joining our call this morning.

我還要感謝我們的股東和董事會對我們努力的持續支持。我們對我們正在採取的行動以及我們對業務績效大幅改善的期望充滿信心。感謝您今天早上加入我們的電話會議。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。