Ampco-Pittsburgh Corp (AP) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome to the Ampco-Pittsburgh Corporation second quarter 2024 earnings results conference call.

大家早安，歡迎參加 Ampco-Pittsburgh Corporation 2024 年第二季財報電話會議。

(Operator Instructions) Also note, today's event is being recorded.

（操作員說明）另請注意，今天的事件正在被記錄。

At this time, I'd like to turn the floor over to Kim Knox, Corporate Secretary.

現在，我想請公司秘書 Kim Knox 發言。

Please go ahead.

請繼續。

Thank you, Jamie, and good morning to everyone joining us on today's second quarter 2024 conference call.

謝謝 Jamie，祝參加今天的 2024 年第二季電話會議的所有人早安。

Joining me today are Brett McBrayer, our Chief Executive Officer, and Mike McAuley, Senior Vice President, Chief Financial Officer and Treasurer.

今天與我一起出席的有我們的執行長 Brett McBrayer 和高級副總裁、財務長兼財務主管 Mike McAuley。

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

今天加入我們電話會議的還有聯合電力鋼鐵公司總裁薩姆·里昂和空氣和液體系統公司總裁戴夫·安德森。

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.

在開始之前，我想提醒大家，本次電話會議的參與者可能會發表前瞻性的聲明或評論，其中可能包括財務預測或有關公司計劃、目標、期望或意圖的其他聲明。

These matters involve certain risks and uncertainties, many of which are outside the corporation's control 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 in subsequent filings with the Securities and Exchange Commission.

這些事項涉及某些風險和不確定性，其中許多風險和不確定性超出了公司的控制範圍由於各種風險因素，包括公司最近提交的表格10 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有顯著差異-K 以及隨後向美國證券交易委員會提交的文件。

We did not undertake any obligation to update or otherwise release publicly any revision to our forward-looking statements.

我們不承擔更新或以其他方式公開發布對我們的前瞻性陳述的任何修訂的義務。

A replay of this call will be posted on our website.

本次通話的重播將發佈在我們的網站上。

To access the earnings release or the webcast replay, please consult the Investors section of our website at ampcopgh.com. With that, I would like to now turn the call over to Brett McBrayer, Ampco-Pittsburgh CEO.

若要存取收益發布或網路廣播重播，請查閱我們網站 ampcopgh.com 的投資者部分。現在，我想將電話轉給 Ampco-Pittsburgh 執行長 Brett McBrayer。

Brett?

布雷特？

Thank you, Kim.

謝謝你，金。

Good morning and thank you for joining our call.

早安，感謝您加入我們的通話。

As mentioned in our 10 Q filed yesterday.

正如我們昨天提交的 10 個問題中提到的。

In our press release, we had strong sequential earnings improvement in the second quarter of 2024.

在我們的新聞稿中，我們在 2024 年第二季實現了強勁的連續獲利改善。

Income from operations was $5 million for the second quarter compared to $1.4 million in adjusted income from operations for the second quarter of the prior year.

第二季營運收入為 500 萬美元，而去年第二季調整後營運收入為 140 萬美元。

When excluding the one-time foreign energy credits, this $3.5 million fold improvement reflects a full quarter of utilizing all our new equipment in our Forged and Cast Engineered Products segment and record order intake for Air and Liquid Systems.

在排除一次性外國能源信貸後，這一 350 萬美元的增長反映了我們鍛造和鑄造工程產品部門所有新設備的整個季度的使用，以及創紀錄的空氣和液體系統訂單量。

Net income for the quarter was $2 million or $0.1 per diluted share.

本季淨利為 200 萬美元，即稀釋後每股收益 0.1 美元。

And at that time, I'll turn the call over to Sam Lyon, President of our Forged and Cast Engineered Products segment to share more details about his group's performance in the quarter.

屆時，我將把電話轉給我們鍛造和鑄造工程產品部門總裁 Sam Lyon，分享更多有關他的團隊本季業績的詳細資訊。

Sam?

薩姆？

Thank you, Brett, and good morning.

謝謝你，布雷特，早安。

In our FCDP. segment, market conditions have shown signs of stabilization.

在我們的 FCDP 中。細分市場，市場狀況已顯示出穩定跡象。

The rural market remained flat in Q2 due to consistent end customer demand, while stable due to ongoing economic uncertainties and increased imports of flat rolled steel.

由於終端客戶需求穩定，第二季農村市場保持平穩，同時由於持續的經濟不確定性和扁鋼進口增加而保持穩定。

European steel producers continued to operate at lower utilization levels resulting in pricing and volume pressures based on customer sentiment, we anticipate an improvement in order intake in the second half of the year for deliveries in 2025.

歐洲鋼鐵生產商繼續以較低的利用率水準經營，導致基於客戶情緒的定價和銷售壓力，我們預計下半年 2025 年交貨的訂單量將有所改善。

Our backlog decreased by approximately $16.1 million from December 31, 2023 due to the timing of 2025 orders from some of our real customers, which are expected in Q3.

自 2023 年 12 月 31 日起，我們的積壓訂單減少了約 1,610 萬美元，原因是我們的一些實際客戶的 2025 年訂單時間預計在第三季。

We are optimistic about order intake for delivery in 2025 based on volumes received from several large customers to date and indications from others.

根據迄今為止從幾個大客戶收到的數量以及其他客戶的指示，我們對 2025 年交付的訂單量持樂觀態度。

Primary focus remains on maintaining our position in the rural market and enhancing operational efficiencies through our recently completed capital program in the US.

主要重點仍然是保持我們在農村市場的地位，並透過我們最近完成的美國資本計劃提高營運效率。

This equipment investment increases the capacity of FTTP manufacturing and improves productivity and operational reliability of our forge business.

這項設備投資提高了 FTTP 製造能力，並提高了我們鍛造業務的生產力和營運可靠性。

For the three months ended June 30, 2024, net sales for the FCEP. segment were $75.7 million, a slight decrease from $77.6 million in the same period last year.

截至 2024 年 6 月 30 日的三個月 FCEP 淨銷售額。該部門的營收為 7,570 萬美元，比去年同期的 7,760 萬美元略有下降。

This decrease is primarily due to lower Castrol shipments, offset by higher forged roll sales and improved pricing.

這一下降主要是由於嘉實多出貨量減少，但被鍛輥銷量增加和定價改善所抵消。

Income from operations for Q2 2024 increased to $5.4 million from $3.9 million in Q2 of 2023 Q2 of 2023 included $1.9 million onetime energy credit in Europe.

2024 年第二季的營運收入從 2023 年第二季的 390 萬美元增至 540 萬美元。

The significant performance improvement resulted from improved pricing, improved quality and productivity and lower selling and administrative expenses.

業績的顯著改善得益於定價的改善、品質和生產力的提高以及銷售和管理費用的降低。

In conclusion, while 2024 presents challenges at shipment volumes and market conditions, our strategic pricing actions and operational improvements have mitigated these challenges.

總而言之，雖然 2024 年出貨量和市場狀況面臨挑戰，但我們的策略定價行動和營運改善緩解了這些挑戰。

We remain committed to maintaining market leadership and delivering value to our stakeholders.

我們仍然致力於保持市場領先地位並為利害關係人提供價值。

Thank you, Sam.

謝謝你，山姆。

David Anderson, President of Air and Liquid Processing segment, will now share more detail regarding his group's performance.

空氣和液體處理部門總裁 David Anderson 現在將分享有關其團隊表現的更多細節。

Dave?

戴夫？

Thank you, Brett.

謝謝你，布雷特。

Good morning.

早安.

Air and Liquid Q2 revenue increased 19% versus prior year to achieve a record high for any quarter in Air Liquide's history.

空氣和液體業務第二季營收較去年同期成長 19%，創液化空氣歷史上任何季度的歷史新高。

The increase was primarily due to increased shipments of custom air handling units.

這一增長主要是由於定制空氣處理機組的出貨量增加。

This increase was driven by the additional manufacturing capacity achieved by opening the new Virginia facility in mid 2023.

這一增長是由 2023 年中期開設新的維吉尼亞工廠所實現的額外製造能力所推動的。

Bookings for Q2 were also at a record high as we continue to see strong demand for our products.

由於我們持續看到對我們產品的強勁需求，第二季的預訂量也創下了歷史新高。

Backlog increased in the quarter as the result of strong bookings in the pharmaceutical and US Navy markets.

由於製藥和美國海軍市場的預訂強勁，本季積壓訂單增加。

Operating income for air and liquid increased 7% in the second quarter versus prior year, primarily due to the higher revenue.

第二季空氣和液體業務的營業收入比去年同期成長了 7%，這主要是由於收入增加。

The impact from the higher revenue was partially offset by unfavorable product mix as we work through some older, low-margin orders in our backlog compared to the prior quarter, operating income increased 60% due to higher revenue and a more favorable product mix for production equipment arrived at our Buffalo pumps facility in Q2.

與上一季相比，收入增加的影響被不利的產品組合部分抵消，因為我們正在處理積壓中的一些舊的、低利潤的訂單，由於收入增加和更有利的生產產品組合，營業收入增加了60%設備於第二季抵達我們的布法羅泵浦工廠。

This is the equipment that was purchased with the funding provided by the US Navy installation of the equipment was completed in early Q3.

這是美國海軍提供的資金購買的設備，該設備的安裝已於第三季初完成。

This equipment will raise our manufacturing capacity and increase efficiencies in the quarters ahead.

該設備將在未來幾季提高我們的製造能力並提高效率。

Q2 saw both record bookings and record revenue as demand for our products continues to be extremely strong.

由於對我們產品的需求持續強勁，第二季的預訂量和收入均創歷史新高。

We continue to take steps to increase our manufacturing capacity to meet this demand.

我們將繼續採取措施提高製造能力以滿足此需求。

The manufacturing facility we opened last year in Virginia was the primary driver for Air Handling sales being up 58% in Q2 versus prior year.

我們去年在維吉尼亞州開設的製造工廠是空氣處理銷售額第二季度較去年增長 58% 的主要推動力。

And the new equipment in our Buffalo facility will raise our manufacturing capabilities to meet the increasing demand from the US Navy markets in the quarters ahead, we expect to continue to increase our manufacturing capacity as we expect strong demand in the second half of 2024 and continuing in 2025.

我們布法羅工廠的新設備將提高我們的製造能力，以滿足未來幾季美國海軍市場不斷增長的需求，我們預計將繼續提高我們的製造能力，因為我們預計2024 年下半年需求強勁並持續增長2025年。

Thank you, David.

謝謝你，大衛。

I'll now turn the call over to Mike McAuley, our Chief Financial Officer, for more detail regarding our financial performance for the quarter.

我現在將把電話轉給我們的財務長邁克·麥考利，以了解有關我們本季財務業績的更多詳細資訊。

As, indicated in our Form 10-Q filed yesterday and in our press release issued last night, Ampco's net sales for the second quarter of 2024 were $111 million, an increase of 3.5% compared to net sales for the second quarter of 2023.

正如我們昨天提交的 10-Q 表格和昨晚發布的新聞稿所示，Ampco 2024 年第二季度的淨銷售額為 1.11 億美元，比 2023 年第二季度的淨銷售額增長了 3.5%。

The air and liquid Processing segment accounted for the sales growth over prior year.

空氣和液體加工部門的銷售額比上年有所成長。

Cast engineered products segment sales were down slightly versus prior year as higher shipment volumes of forged rolls and higher net pricing were offset by lower shipment volumes of cast rolls and FEP products.

鑄造工程產品部門的銷售額較上年略有下降，原因是鍛造輥出貨量的增加和淨定價的提高被鑄輥和 FEP 產品出貨量的下降所抵消。

The income from operations for the second quarter of 2024 was $5 million, slightly higher than the top end of our previous guidance range.

2024 年第二季的營運收入為 500 萬美元，略高於我們先前指導範圍的上限。

The main driver for the improvement versus Q2 of 2023 was higher net roll pricing.

與 2023 年第二季相比，業績改善的主要驅動因素是淨滾動定價的提高。

In addition, it should be noted that the prior year quarter had the benefit of a foreign energy credit of $1.9 million.

此外，值得注意的是，上一季還受惠於 190 萬美元的外國能源信貸。

So the underlying year-over-year step-up in profitability for the quarter was more sizable from the as-reported change.

因此，與報告的變化相比，本季獲利能力的年增率更大。

Corporation's total, selling and administrative expenses were approximately 12.2% of net sales for Q2 2024 compared to 13.1% for Q2 2023, primarily due to lower commissions and professional services in the forged and cast engineered products segment.

2024 年第二季度，公司的銷售和管理費用總額約佔淨銷售額的 12.2%，而 2023 年第二季度為 13.1%，這主要是由於鍛造和鑄造工程產品領域的佣金和專業服務較低。

Interest expense of $3 million for the quarter increased $0.8 million compared to prior year primarily due to higher equipment financing debt balance for the new machinery in the US sports business, which has now been completed and converted to term notes, as well as higher average revolving credit facility borrowings to support working capital growth and higher average interest rates on our floating rate instruments due to interest rate market movements.

本季利息支出為 300 萬美元，較上年同期增加 80 萬美元，主要是由於美國體育業務新機器的設備融資債務餘額增加（現已完成並轉換為定期票據），以及平均週轉率增加信貸便利借款，以支持營運資本成長以及由於利率市場變動而提高我們的浮動利率工具的平均利率。

Other income net improved primarily due to foreign exchange translation losses recorded in Q2 2023 versus gains recorded in Q2 2024.

其他淨收入額有所改善，主要是由於 2023 年第二季記錄的外匯換算損失與 2024 年第二季記錄的收益相比。

Income tax provision for Q2 2024 increased compared to the prior year principally due to higher income of the corporation's profitable entities.

2024 年第二季的所得稅撥備較前一年增加，主要是因為公司獲利實體的收入增加。

We have no valuation allowances recorded against their deferred tax assets.

我們沒有針對其遞延稅資產記錄估價備抵。

As a result, net income attributable to Ampco-Pittsburgh for the three months ended June 30, 2024 was $2 million or $0.1 per share.

因此，截至 2024 年 6 月 30 日的三個月，歸屬於 Ampco-Pittsburgh 的淨利潤為 200 萬美元，即每股 0.1 美元。

This compares to net income of $1 million or $0.02 per share for the quarter ended June 30, 2023, which included a $0.1 per share benefit for the foreign energy credits.

相比之下，截至 2023 年 6 月 30 日的季度淨利潤為 100 萬美元，即每股 0.02 美元，其中包括每股 0.1 美元的外國能源信貸收益。

Total backlog at June 30, 2024, of $360.4 million declined approximately 5% from December 31.

截至 2024 年 6 月 30 日，積壓訂單總額為 3.604 億美元，較 12 月 31 日下降約 5%。

Forged and Cast Engineered Products segment backlog decreased from December 31, 2023, by approximately $12.5 million due primarily to the timing of 2025 mill mill roll orders for large customers, as Sam described, as well as for lower foreign exchange rates, which reduced the translated value of backlog by another $3.5 million.

鍛造和鑄造工程產品部門的積壓訂單自2023 年12 月31 日起減少了約1250 萬美元，這主要是由於Sam 所描述的，由於大客戶的2025 年軋機軋輥訂單的時間安排，以及較低的外匯匯率，這減少了折算後的訂單積壓訂單價值又增加了 350 萬美元。

However, forge and cast backlog increased by $7.3 million compared to its backlog recorded at March 31 as order intake moved up in Q2.

然而，隨著第二季訂單量的增加，鍛造和鑄造積壓訂單與 3 月 31 日記錄的積壓訂單相比增加了 730 萬美元。

The air and liquid segment backlog declined by $2.4 million from December 31, but increased by $4.2 million from March 31 as record order intake in Q2 was partly offset by higher sales revenue.

空氣和液體部門的積壓訂單較 12 月 31 日減少了 240 萬美元，但較 3 月 31 日增加了 420 萬美元，因為第二季創紀錄的訂單量被較高的銷售收入部分抵消。

As Dave described, net cash flows used in operating activities was $5.3 million for Q2 2024 in support of higher trade working capital, principally higher accounts receivable given the elevated sales and pension contributions.

正如戴夫所描述的，2024 年第二季經營活動中使用的淨現金流量為530 萬美元，以支持更高的貿易營運資本，主要是由於銷售額和退休金繳款增加而增加的應收帳款。

Capital expenditure for the second quarter of 2024 were $2.7 million, primarily for the Forged and Cast Engineered Products segment.

2024 年第二季的資本支出為 270 萬美元，主要用於鍛造和鑄造工程產品領域。

We expect CapEx for the remainder of the year to be approximately stable with the Q2 run rate at June 30, 2024, the corporation's liquidity position included cash on hand of $7.9 million and undrawn availability on our revolving credit facility of $20.5 million.

我們預計今年剩餘時間的資本支出將大致穩定，以2024 年6 月30 日的第二季度運行率計算，公司的流動性狀況包括手頭現金790 萬美元和循環信貸額度中未提取的可用資金2050 萬美元。

However, as we reported in our press release of July 10 to corporations, liquid liquidity position increased since June 30.

然而，正如我們在 7 月 10 日向企業發布的新聞稿中所報導的，自 6 月 30 日以來，流動性流動性部位有所增加。

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

接線員，現在我們要開通提問線路。

(Operator Instructions) David Wright, Henry Investment Trust.

（操作員說明）大衛·賴特，亨利投資信託公司。

Good morning, everyone.

大家早安。

Listen, congratulations to you and the team on for a clean and solid quarter on that you mentioned.

聽著，恭喜您和您的團隊在您提到的方面取得了乾淨而紮實的季度業績。

And you mentioned strong sequential improvement in Q2, and it's really clear on we're halfway through the third quarter on how do you feel about this quarter and continuing on.

您提到了第二季度的強勁連續改善，第三季已過半，您對本季的感受如何並繼續下去，這一點非常清楚。

It was a good result of the second quarter.

這是第二季的好成績。

As you remember, Dave, the third quarter is a for the Forged and Cast Engineered Products segment is a shutdown period for our European assets.

戴夫，您還記得嗎，對於鍛造和鑄造工程產品部門來說，第三季是我們歐洲資產的關閉期。

And we had a smaller shutdown period at the beginning of the quarter four, our US operations, so tends to be a little weaker overall, but the underlying fundamentals of the business, the efficiency improvements we expect to continue as we move throughout the course of the year.

我們在第四季初的關閉期較短，我們的美國業務總體上趨於疲軟，但業務的基本面，我們預計隨著我們在整個過程中的進展，效率將繼續提高那一年。

That will offsets some of that shutdown slowdown?

這會抵銷部分停工放緩的影響嗎？

It will.

會的。

yes, and things are going well in air and liquid.

是的，在空氣和液體中一切都進展順利。

So, you know, this is really great results and it's nice to see a clean quarter with no like no extraordinaries And have you had any extraordinaries so far this quarter?

所以，你知道，這確實是很棒的結果，很高興看到一個乾淨的季度，沒有任何非凡的事情，本季度到目前為止，你有任何非凡的事情嗎？

No, none today.

不，今天沒有。

That's great.

那太棒了。

I want to add, Sam, that's a really good result in your segment, five plus million of operating income and have a 7% margin on and you haven't had a quarter like that in quite a while.

我想補充一點，Sam，這在您的細分市場中確實是一個很好的業績，營業收入超過5 億美元，利潤率為7%，而且您已經很長一段時間沒有遇到過這樣的季度了。

Was there anything extraordinary there or is it just more reflective of where you've gotten the business to with the new equipment and the new layoffs and such?

其中有什麼特別之處嗎？

It's a combination, David, of the efficiency from the new equipment.

大衛，這是新設備效率的結合。

And then also we had relatively strong order book in Q2 ran the operations at a higher utilization level.

然後，我們在第二季也擁有相對強勁的訂單，以較高的利用率水準經營業務。

And so our results in the US were strong and as a result of that.

因此，我們在美國的業績非常強勁。

So just just have enough kind of the and also the pricing levels are better than they had been in the past.

因此，只要有足夠的種類，而且定價水準也比過去更好。

Would you ultimately see being able to get to something better than a 7% operating margin or is that on a level?

您最終會看到能夠達到比 7% 更好的營業利潤率還是處於某個水平？

That's pretty good and that you're happy with and as volumes would increase, then the operating margin will increase as our up in my side of the business, the the fixed costs are relatively stable and a pretty high percentage of our total costs.

這非常好，您對此感到滿意，隨著銷售量的增加，隨著我們業務的成長，營業利潤率也會增加，固定成本相對穩定，占我們總成本的比例相當高。

So we get a lot of drop-through from an incremental volume.

因此，我們從增量量中獲得了大量的收益。

So I would expect great.

所以我期待很好。

And infrastructure, Bill and things and steel demand goes up over the next quarters and years.

基礎設施、比爾和物品以及鋼鐵需求在接下來的幾個季度和幾年都會上升。

So we anticipate then we should see it.

所以我們預計我們應該會看到它。

Well, great payer, Dave, on how you got your margin back this quarter and so that's great to see.

好吧，戴夫，偉大的付款人，關於您如何在本季度收回利潤，所以很高興看到這一點。

And I wonder, though, how much longer is it going to take to get these older lower-margin orders to fully roll off.

不過，我想知道需要多長時間才能讓這些舊的低利潤訂單完全停止。

David, we expect the majority of that to happen in the second half of this year.

大衛，我們預計其中大部分將在今年下半年發生。

And then they should be behind us.

然後他們應該在我們身後。

Do you have more volume wise?

你有更多的音量嗎？

Do you have more of that type of business in the second half quantity wise or volume-wise than you did in the first half?

下半年此類業務的數量或數量是否比上半年更多？

And now it's similar.

現在也很相似。

It would be similar to the first half and you will be witness a little while longer and then that goes away.

這與前半部類似，你會見證更長的時間，然後就消失了。

You had super order intake in the second quarter, how has it been so far in the third quarter?

你們第二季的訂單量超多，第三季到目前為止怎麼樣？

Good.

好的。

We're still seeing really strong markets.

我們仍然看到非常強勁的市場。

Some pharmaceutical, U.S. Navy, as I pointed out in Q2 and those continue to look good in Q three at this point.

正如我在第二季指出的那樣，一些製藥公司、美國海軍，目前在第三季仍然表現良好。

So we're there's a lot of good demand out there for us.

因此，我們有很多良好的需求。

Okay, great.

好的，太好了。

Well, that's super two quick ones for Mike, on up on the availability.

嗯，這對麥克來說是超級快速的兩件事，取決於可用性。

You alluded to it in your in your in your remarks, $20.5 million at June 30, and $27.2 million on July 9, when you put out your from your guidance.

您在演講中提到，6 月 30 日為 2,050 萬美元，7 月 9 日公佈指引時為 2,720 萬美元。

That's about $6.6 million of change.

這大約是 660 萬美元的零錢。

Was that an actual paydown or was it a change in the availability formula combination.

這是實際支付還是可用性公式組合的變化。

That just seems quite a lot in a short period.

這在短時間內似乎相當多。

Yes, it's just on just movements in working capital, David receipts receipts have been better catching up on some past dues and you know that that availability number is going to fluctuate over time.

是的，這只是營運資金的變動，大衛的收據已經更好地追上了一些過去的應付款項，而且你知道可用性數字會隨著時間的推移而波動。

But we are we are at the moment as our press release on July 10 indicated we are best.

但我們現在就是這樣，7 月 10 日的新聞稿表明我們是最好的。

We are stronger liquidity wise than we were at June 30, just from a general flows of ins and outs of net working capital.

光從淨營運資本的進出情況來看，我們的流動性就比 6 月 30 日更強。

And we continue to be that way approximately right now.

我們現在仍然保持這種狀態。

So have the availability are very much different today from the July nine number.

因此，今天的可用性與 7 月 9 日的數字有很大不同。

Now very much now.

現在非常現在了。

Okay.

好的。

And then lastly, is, you know, the SG&A has gone up quite a lot over the last few years.

最後，你知道，SG&A 在過去幾年成長了很多。

And I just wonder, are there any opportunities to come to check that and and maybe slow or reverse the growth in that?

我只是想知道，是否有機會來檢查這一點，並可能減緩或逆轉其增長？

Well, it is a sample.

嗯，這是一個樣本。

The one thing that we have done is gone out to our agent network and we have reduced the fees there.

我們所做的一件事就是進入我們的代理網絡，並降低了那裡的費用。

So it's not it's not huge, but kind of in the neighborhood of three or $400,000 a year.

所以不是規模不大，而是每年大約三或四十萬美元。

So and then we are we're always looking at what we can do there and in the past on our resorts sales shift away from frac blocks to more distribution kind of bar.

因此，我們一直在尋找我們可以在那裡做什麼，過去我們的度假村銷售從壓裂塊轉向更多分銷類型的酒吧。

We don't have sales commission on that either.

我們也沒有銷售佣金。

So that will that would bring that number down relative to the sales number.

因此，這將使該數字相對於銷售數字下降。

I think, David, for the air and liquid side, the investments we made in the last couple of years to strengthen our sales group, we've largely done.

大衛，我認為，對於空氣和液體方面，過去幾年我們為加強銷售團隊而進行的投資，我們已經大部分完成了。

So the only thing that really would increase is the commissions we pay if there's higher revenue to the independent rep network that we have.

因此，如果我們擁有的獨立代表網絡有更高的收入，唯一真正會增加的是我們支付的佣金。

But our sales group is pretty strong now where we said.

但正如我們所說，我們的銷售團隊現在相當強大。

Okay.

好的。

Well, Mike, did you have a comment on the G&A?

麥克，您對一般行政費用有什麼看法嗎？

No, only that I was going to reiterate probably what Dave indicated that we've intentionally invested in growth on air and liquid and that we knew that, that cost money, that cost SG&A dollars, but it's basically in place now.

不，只是我可能要重申戴夫所說的，我們有意投資於空氣和液體的增長，我們知道，這要花錢，要花費SG&A 美元，但現在基本上已經到位。

And it's basically there to leverage to grow the sales, grow the top line and bring more, but, you know, bottom line drop-through going forward.

它基本上是為了增加銷售額、增加收入並帶來更多，但你知道，未來的利潤會下降。

So yes, we know what's up higher on, but we're which part of the what it takes to get the higher sales plus we're going to we brought a new facility online.

所以，是的，我們知道接下來會發生什麼，但我們是獲得更高銷售額所需的哪一部分，而且我們將在網路上推出一個新設施。

It was more at least costed in the new facility, but we're loading that up as well.

新設施的成本至少更高，但我們也在增加。

Well, listen, everyone hope a great report.

好吧，聽著，每個人都希望有一個精彩的報告。

Nice and clean and well done.

漂亮又乾淨而且做得很好。

And thanks for taking all my questions.

感謝您回答我所有的問題。

Thank you, David.

謝謝你，大衛。

Thanks.

謝謝。

(Operator Instructions) John Bair, Ascend Wealth Advisors.

（操作員說明）John Bair，Ascend Wealth Advisors。

Thank you and good morning, gentlemen.

謝謝你們，早安，先生們。

Morning.

早晨。

Some of my question was was answered there with regards to margins.

我的一些關於利潤的問題在那裡得到了解答。

It sounds like by the end of this year, the lower margin backlogs is going to be pretty well rolled off.

聽起來到今年年底，利潤率較低的積壓訂單將會得到很好的消除。

Is that crop?

那是莊稼嗎？

Is that the way to look at it?

是這樣看的嗎？

Yes, that's correct.

是的，這是正確的。

And as more of the lower margin stuff being moved out first show that sequentially the fourth quarter margins might be better than the current third quarter.

隨著更多利潤率較低的產品首先被移出，第四季的利潤率可能會好於目前的第三季。

Is that a way to look at it as well?

也是這樣看待它嗎？

No, it really depends on the timing of when the orders would be going out.

不，這實際上取決於訂單發出的時間。

It will be spread through the third and fourth quarter, along with more recent orders so it doesn't necessarily go out in sequence to when they were booked.

它將與最近的訂單一起分佈在第三和第四季度，因此不一定按預訂時的順序發出。

Okay, so it's a kind of a balanced mix.

好的，這是一種平衡的組合。

That that's good.

那很好。

Then I'd like you can you.

那我想你可以嗎。

Can you outline what your game plan is on on your debt reduction going forward?

您能否概述一下您未來削減債務的計劃？

Yes.

是的。

When you look at our I mean, if you look at the 10 K and you look at the debt footnote, we have a few industrial revenue bonds that have a maturity that all flows are lower rate instruments.

當你看我們的時，我的意思是，如果你看 10 K 並看債務腳註，我們有一些工業收入債券，它們的到期日是所有流量都是較低利率的工具。

And so we prefer to keep them in rather than refinance them.

因此，我們更願意保留它們，而不是為它們提供再融資。

But we we will have them maturing over the next couple of years.

但我們會讓它們在未來幾年內成熟。

They come out.

他們出來了。

There's about $9 million there of the next opportunity is just revolving credit facility balance to support the working capital.

下一個機會大約有 900 萬美元，只是循環信貸額度餘額，以支持營運資金。

And as our profitability grows over time, we'll be able to finance more working capital and CapEx internally, and that should help bring that balance down, we'll pay.

隨著我們的獲利能力隨著時間的推移而增長，我們將能夠在內部提供更多的營運資金和資本支出，這應該有助於降低平衡，我們將付出代價。

And then this is a new equipment to do installs, enable you to enter any new markets?

然後這是一個新的設備進行安裝，使您能夠進入任何新的市場？

On my on my side, same FCP. allows us to expand in the nonres market, but not necessarily enter any market break period.

在我這邊，同樣的 FCP。允許我們在非再生能源市場上擴張，但不一定進入任何市場突破期。

For the stuff that we've put in Buffalo pumps, the new equipment really that's supporting the Navy, the Navy is continuing to show more and more activity in their ship growth plans.

對於我們在布法羅泵中放入的東西，這些新設備確實支持海軍，海軍在其船舶增長計劃中繼續表現出越來越多的活動。

So our focus is really supporting that.

所以我們的重點是真正支持這一點。

Okay.

好的。

And that was going to be my next question is on the Navy business.

我的下一個問題是關於海軍業務的。

Is that something that you foresee?

這是你預見的嗎？

It sounds like something you foresee is got a longer runway to it.

聽起來你預見到的事情會有更長的跑道。

Yes, the most stuff and then we may have a long-term plan to increase the size of the Navy fleet.

是的，最多的東西，然後我們可能會有一個長期計劃來增加海軍艦隊的規模。

And is it is that focused on the subs or carriers or cruisers or what area?

重點是潛水艇、航空母艦、巡洋艦還是什麼領域？

All of the above.

上述所有的。

In essence, they're chasing China.

本質上，他們是在追趕中國。

The airline is building ships very fast.

該航空公司建造船舶的速度非常快。

Right.

正確的。

Okay.

好的。

And -- are those contracts or those orders are those longer term?

而且——這些合約或訂單是長期的嗎？

Are there -- in other words, do you get backlogs with them that go out two, three years or is it a shorter timeframe?

換句話說，您是否有積壓的訂單需要兩年、三年或更短的時間？

It if you look at the business in two pieces, the backlog related to new ship builds tends to be longer like you just described.

如果您將業務分為兩部分，那麼與新船建造相關的積壓訂單往往會更長，就像您剛才所描述的那樣。

It can be two or three years out.

可能要等兩三年。

Then there's also the aftermarket, which is replacements and parts that's shorter.

然後還有售後市場，即更換和較短的零件。

That moves quicker.

這樣動作就更快了。

Good.

好的。

All right.

好的。

That said, pretty much I have.

也就是說，我幾乎有。

Thanks very much for taking the questions.

非常感謝您提出問題。

Thanks.

謝謝。

Yes, and ladies and gentlemen, at this time and showing no additional questions, I'd like to turn the floor back over to Brett McBrayer for closing remarks.

是的，女士們、先生們，此時此刻，我想將發言權交還給布雷特·麥克布瑞爾 (Brett McBrayer) 進行閉幕致辭。

Thank you.

謝謝。

I'm proud of the work that our team members across the globe have achieved.

我為我們全球團隊成員所取得的成就感到自豪。

Despite significant headwinds we are still experiencing in Europe, our underlying operations continued to improve as our new capital assets ramp up to their full capabilities.

儘管我們在歐洲仍面臨重大阻力，但隨著我們的新資本資產充分發揮其能力，我們的基礎業務繼續改善。

We expect further improvements in our productivity and very excited about the demand and growth in the air and liquid systems segments.

我們期望我們的生產力進一步提高，並對空氣和液體系統領域的需求和成長感到非常興奮。

Thank you, everyone, for joining our call this morning.

謝謝大家今天早上加入我們的電話會議。

Ladies and gentlemen, with that, we'll conclude today's conference call and presentation.

女士們先生們，我們今天的電話會議和演示就到此結束。

We do thank you for joining.

我們非常感謝您的加入。

You may now disconnect your lines.

現在您可以斷開線路。