Art's Way Manufacturing Co Inc (ARTW) 2012 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Today is Monday, October 15, 2012, and welcome to the Art's Way Manufacturing Company, Incorporated third-quarter and nine-month financial results conference call. At this time, all participants are in a listen-only mode. (Operator Instructions)

各位女士、先生，早安。今天是2012年10月15日（星期一），歡迎參加Art's Way Manufacturing Company, Incorporated第三季及前九個月財務結果電話會議。目前所有與會者皆為只聽模式。（接線員指示）

Your call leaders for today's call are Jim Drewitz, Investor and Press Relations Representative; J. Ward McConnell, Jr., Chairman of the Board of Directors; and Carrie Majeski, President and Chief Executive Officer. I would now like to turn the call over to Mr. Jim Drewitz. Mr. Jim Drewitz, you may begin.

今天電話會議的主持人為投資人與媒體關係代表Jim Drewitz、董事會主席J. Ward McConnell, Jr.，以及總裁兼執行長Carrie Majeski。現在我把電話交給Jim Drewitz先生。Jim Drewitz先生，請開始。

Thank you very much and good morning, ladies and gentlemen. I would like to draw your attention to, except for historical information contained herein, the statements in this conference call are forward-looking and made pursuant to the Safe Harbor provisions as outlined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risk and uncertainties which may cause Art's Way Manufacturing actual results in future periods to differ materially from forecasted results.

非常感謝，各位女士、先生早安。我想提醒各位，除本文所載之歷史資訊外，本次電話會議中的陳述屬於前瞻性陳述，並依據1995年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所規定之「安全港」條款作出。前瞻性陳述涉及已知與未知之風險與不確定性，可能導致Art's Way Manufacturing於未來期間之實際結果與預測結果出現重大差異。

Those risks include, among other things, the loss of market share through competition or otherwise; the introduction of competing technologies by other companies; new governmental safety, health and environmental regulations, which could require Art's Way Manufacturing to make significant capital expenditures. The forward-looking statements included in this conference call are only made as of the date of this call and Art's Way Manufacturing undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

這些風險包括但不限於：因競爭或其他原因而喪失市占率；其他公司導入競爭性技術；新的政府安全、健康與環境法規，可能要求Art's Way Manufacturing進行重大資本支出。本次電話會議所包含之前瞻性陳述僅截至本次通話日期為止，Art's Way Manufacturing不承擔公開更新該等前瞻性陳述以反映後續事件或情況之義務。

Important factors that could cause actual results to differ materially from the expectations reflected in the forward-looking statements include, but are not limited to, factors described under the captions Risk Factors in the Company's annual report on Form 10-K filed with the Securities and Exchange Commission.

可能導致實際結果與前瞻性陳述所反映之預期出現重大差異的重要因素包括但不限於：公司向美國證券交易委員會（SEC）提交之Form 10-K年度報告中「風險因素」（Risk Factors）標題下所述之因素。

With that completed, I would like to turn the call over to Mr. Ward McConnell. Mr. McConnell?

以上說明完畢後，我想把電話交給Ward McConnell先生。McConnell先生？

Good morning, folks. I am pretty pleased with this quarter and this nine-month result, and we have performed pretty well, with sales up as much as they are. And after I get -- after you hear the numbers again, I will come back to you. Carrie will give you the numbers.

各位早安。我對本季以及前九個月的結果相當滿意；我們表現得很不錯，銷售額也如各位所見大幅成長。等我——在各位再聽一次數字之後——我會再回來補充。Carrie會先向各位報告數字。

Good morning. Our net sales for the three months ended August 31, 2012, were $11,534,000. This represented a 24.7% increase over the same period in 2011, which was $9,252,000. Our operating income for the three months ended August 31, 2012 was $1,607,000, which represented an 11.8% increase over the same period last year, which was $1,438,000.

早安。我們截至2012年8月31日止三個月的淨銷售額為11,534,000美元，較2011年同期的9,252,000美元成長24.7%。截至2012年8月31日止三個月的營業利益為1,607,000美元，較去年同期的1,438,000美元成長11.8%。

On the nine-month numbers, our net sales ending August 31, 2012 were $29,531,000 compared to $21,762,000, which was a 35.7% increase. Our operating income for the nine months was $3,463,000 compared to $1,327,000, which represented a 161% increase.

以前九個月的數字來看，截至2012年8月31日止的淨銷售額為29,531,000美元，較21,762,000美元成長35.7%。前九個月的營業利益為3,463,000美元，較1,327,000美元成長161%。

We are very pleased that all three segments are showing both increases to sales and operating income. Our Ag sector for the nine months ended went to $20,170,000 in sales compared to $18,091,000. The biggest contributor to this would have been our acquisition of UHC which took place in May of this year.

我們非常高興三個事業部門在銷售與營業利益方面皆呈現成長。我們農業（Ag）部門截至前九個月的銷售額為20,170,000美元，較18,091,000美元增加。對此貢獻最大的是我們於今年5月完成的UHC收購案。

The Pressure Vessel segment for the nine months had sales of $1,512,000 compared to $1,368,000. We have been struggling to rebuild this business a little bit and we feel like we were there. We are seeing sales increase, and we are seeing our income levels get a little bit better there as well.

壓力容器（Pressure Vessel）部門前九個月的銷售額為1,512,000美元，較1,368,000美元增加。我們一直在努力重建這項業務，而我們覺得已經逐步到位。我們看到銷售增加，也看到該部門的獲利水準有所改善。

Our Modular Laboratory sector, which has had a tremendous year this year, ended the nine months with sales of $7,849,000 compared to $2,302,000 in the prior year. So all three segments showed a nice increase over the prior year.

我們的模組化實驗室（Modular Laboratory）部門今年表現非常亮眼，前九個月的銷售額為7,849,000美元，較前一年的2,302,000美元大幅成長。因此三個部門相較前一年都有不錯的增幅。

In terms of the operating income for each segment, the Agricultural Products had operating income of $2,202,000 compared to $1,830,000. Pressurized Vessels is showing a loss on the nine-month period of $108,000 compared to $332,000 loss in the prior year. The Modular Laboratory segment is showing income from operations of $1,369,000 compared to a loss of $171,000 in the prior year.

就各部門的營業利益而言，農業產品（Agricultural Products）營業利益為2,202,000美元，較1,830,000美元增加。加壓容器（Pressurized Vessels）前九個月呈現108,000美元的虧損，較前一年的332,000美元虧損改善。模組化實驗室部門的營業利益為1,369,000美元，較前一年的171,000美元虧損轉為獲利。

So we are pleased with how each segment is doing individually. And with that, I'll turn it back over to Ward for Q&A.

因此我們對各部門各自的表現都感到滿意。接下來我把電話交回Ward進行問答。

I'm here, ready to go. Those numbers look pretty good.

我在這裡，準備開始。這些數字看起來相當不錯。

Yes, Erica, let's go ahead and go to question and answers.

好的，Erica，我們現在開始進行問答。

(Operator Instructions) Nick Halen, Sidoti & Company.

（接線員指示）Sidoti & Company的Nick Halen。

Good morning, guys. So, the first question I had was how much revenue is yet to be recognized on the large modular building order? And I guess will the remainder of that order be completed in the fourth quarter this year?

各位早安。我的第一個問題是：大型模組化建築訂單尚有多少營收尚未認列？另外，該訂單剩餘部分是否會在今年第四季完成？

It's not going to be finished by the end of the quarter, but it's going to contribute to the quarter. Our backlogs are currently $4,347,000 versus last year's at $138,600 at the end of August. So the majority of that is Scientific. I've got $2,575,000 backlog right now.

它不會在本季末前完工，但會對本季有所貢獻。我們目前的在手訂單（backlog）為4,347,000美元，相較去年8月底為138,600美元。因此其中大部分來自Scientific。我目前的在手訂單是2,575,000美元。

So about -- just a little over $2.5 million, you're saying, is that order basically, or are you just saying Scientific in general?

所以你是說大約——略高於250萬美元——基本上就是那張訂單嗎？還是你只是指Scientific整體？

That's the primary -- biggest part of that will be the job we're on now, but we have some other smaller orders in house now.

那是主要的——其中最大部分會是我們目前正在做的這個案子，但我們也有一些較小的訂單已在手上。

Got you. Okay. And now, I know you spoke about it a little bit, but how much of the sales growth in the Ag equipment side was tied to the Universal Harvester acquisition. And I guess do you guys break out what they contributed in the quarter to revenue?

了解。好。接著，我知道你們稍早有提到一些，但農業設備端的銷售成長有多少是來自Universal Harvester的收購？另外，你們是否會拆分他們在本季對營收的貢獻？

Well, we don't break out individual product lines, but the majority of the increase was there.

我們不會拆分到單一產品線，但大部分的增幅都在那裡。

Okay.

好的。

Not all of it, but nearly all of it.

不是全部，但幾乎都是。

Okay. Now I guess just lastly, in general, can you talk a little bit about the product mix in the quarter, and I guess where you are seeing strong demand? And I guess did the drought have any effect at all on the product mix in the quarter?

好的。最後一個問題，整體而言，你們能否談談本季的產品組合（product mix），以及你們在哪些地方看到需求強勁？另外，乾旱是否對本季的產品組合造成任何影響？

Well, probably, but currently, Ag looks pretty good yet. The farmers who have crops are getting very big numbers for those crops. And many of those who don't are insured. So the majority of them -- the vast majority of the farmers came away with a pretty good year.

嗯，可能有，但目前農業端看起來仍相當不錯。有作物的農民，作物價格（或收益）非常高；而許多沒有作物的也有保險。因此他們之中——絕大多數農民——今年的結果都還不錯。

They still seem quite optimistic, although I think there are some waiting for the election. With our backlog the way it is, we're -- our backlog is up; it is up by about $1 million from last year at this time. It was $718,000 last year and $1.5 million this year in the Ag side. And we have got some programs out that we think are working well, and there is a lot of those yet to be answered.

他們看起來仍相當樂觀，雖然我認為有些人在等選舉結果。以我們目前的在手訂單來看，我們——我們的在手訂單增加了；相較去年同期約增加100萬美元。去年農業端此時為718,000美元，今年為150萬美元。我們推出了一些方案，我們認為效果不錯，而且還有很多尚待回覆。

We give them an extra discount for ordering early, but they have to order a certain volume to get the discounts. And that worked quite well last year, and we raised the level slightly this year, and it still looks like it is going to happen. We have a number of dealers talking, and they get some fill-in privileges with it. So we had never done that before last year, and I think that will be very, very positive for some increased sales this year, this coming year.

我們對提前下單者提供額外折扣，但他們必須訂購達到一定數量才能享有折扣。這在去年運作得相當好；今年我們把門檻稍微提高，但看起來仍會發生。我們有不少經銷商正在洽談，而且他們也能搭配一些補貨（fill-in）權利。因此去年之前我們從未這麼做過，而我認為這將對今年、接下來這一年帶來非常、非常正面的銷售成長。

I know you mentioned in the past you sound pretty confident in -- I shouldn't say confident, but I guess pretty excited about the manure spreaders that you guys have and said you think that could possibly drive some growth for you guys. Are you still anticipating some growth there?

我知道你過去提到過，你對——我不該說很有信心，但我想應該是相當興奮——你們所擁有的糞肥撒布機（manure spreaders）很看好，並且說你認為那可能會為你們帶來一些成長。你們現在仍然預期那邊會有一些成長嗎？

Yes, very definitely. We gave had over the last couple of years while we introduced it some hiccups with -- problems with the machine and so on. We kind of had to debug it after we got it, and then also to bring it into our system.

是的，絕對是。我們在過去幾年導入它的過程中，確實遇到一些小波折——機器本身的問題等等。我們在拿到之後得先把它除錯（debug），另外也要把它納入我們的系統。

But yes, we are pretty excited. It's a very, very good manure spreader and very, very competitive. And I think, yes, we do definitely look for more sales in that product line.

但沒錯，我們相當興奮。這是一台非常、非常好的糞肥撒布機，而且非常、非常有競爭力。我想，是的，我們確實期待這條產品線能有更多銷售。

Great. Thanks, guys.

太好了。謝謝各位。

Roger Miller, Foggy Daze International.

Roger Miller，Foggy Daze International。

Good morning, guys. First of all, is Joe Dancy on this call? Hello?

各位早安。首先，Joe Dancy 有在線上嗎？哈囉？

No, he is -- Joe is not on this call. No.

沒有，他——Joe 不在這通電話上。沒有。

Okay.

好的。

He is listening to the call, but he is not -- he will not be asking any questions.

他有在聽這通電話，但他不會——他不會提任何問題。

Okay. Well, I was hoping he would be answering questions. How's that?

好吧。我本來希望他會回答問題。怎麼說呢？

No, the call is with Ward and Carrie.

沒有，這通電話是由 Ward 和 Carrie 來進行。

Okay. Well, maybe going forward, we could put Joe on the call too.

好吧。也許之後我們也可以把 Joe 也放到電話會議裡。

When I looked at this quarter, what I saw here was stability. The fact that yes, you've increased sales and profit, but basically, you have bolted down the Company and I see stabilization. As far as going forward, there are some areas where I am sure you need improvement. So would you like to describe them in the farm machinery?

我看這一季的表現，我看到的是穩定。的確，你們的銷售與獲利都有增加，但基本上，你們把公司「鎖」得很穩，我看到的是穩定化。至於往前看，有一些領域我相信你們需要改善。那麼，你們願不願意描述一下在農機方面需要改善的地方？

Oh my God, always need improvement, Roger. We have some things there that we could do and we are working on to improve our efficiency in our shops, and to reduce our -- yes, reduce inventory some, but to reduce our warranty expenses. And they are sort of ongoing, but we are on it heavier now than we were maybe a year ago. And we had, I don't know -- a couple years ago, we had a terrible time with paint quality. We feel like we have that corrected. But we have some other low-hanging fruit that we believe we can reduce our costs better -- more.

天啊，Roger，永遠都需要改善。我們有一些事情可以做，而且我們正在努力提升我們工廠（shops）的效率，並降低我們的——是的，稍微降低一些庫存，但也要降低我們的保固費用。這些算是持續性的工作，但我們現在投入的力道比可能一年前更大。我們在——我不知道——幾年前，曾經在塗裝品質上遇到很大的麻煩。我們覺得那已經修正了。不過我們還有一些「低垂的果實」（low-hanging fruit），我們相信可以把成本再降得更好——更多。

Well, since you bought the hay baler line, we haven't heard much about the round hay balers. Is there any thought about buying another hay baler line?

嗯，自從你們買下打草捆機（hay baler）產品線之後，我們就很少聽到圓捆打草捆機（round hay balers）的消息。你們有沒有考慮再買另一條打草捆機產品線？

Not right now, there isn't. The hay baler line, well, basically, we have gotten our money back with the parts business, but we haven't -- well, the hay baler is slightly obsolete. It needs a wrapping mechanism and it doesn't have it. And we understand all of them currently do have it. So we haven't scheduled any productions. We bought 17 balers at the time we brought the product line, and we still have probably five or six of those.

目前沒有。打草捆機那條線，嗯，基本上我們靠零件業務已經把投資回收了，但我們還沒有——嗯，那款打草捆機有點過時。它需要一個包膜／纏繞機構（wrapping mechanism），但它沒有。我們了解現在市面上的機型都具備那個功能。所以我們沒有排定任何生產。我們在買下那條產品線時買了 17 台打草捆機，而我們現在大概還有五、六台。

And we're evaluating it. We have sent it to an engineering firm to have the wrapping mechanism fixed on it. We understand that M&W, when they had it, had had problems with it, but had never finished debugging it, but never told us that. But that's neither here nor there.

我們正在評估。我們已把它送到一家工程公司，請他們把包膜／纏繞機構修好。我們了解 M&W 當時擁有它時曾經遇到問題，但一直沒有把除錯完成，也從未告訴我們。不過那也無所謂。

It is just -- it's taking -- on every product line we have brought in, we have had a few years of getting ready and getting the bugs removed and so on, to fit it into our own system and get it into our computer correctly. But the spreader came in a couple years ago and now it is ready to go and we are writing orders for it as we speak, and it just turned out to be a very good product.

只是——我們引進的每一條產品線，都需要花幾年時間準備、把問題修掉等等，讓它能符合我們自己的系統，並在我們的電腦系統裡正確建檔。但撒布機是幾年前引進的，現在已經準備就緒；我們此刻就在接單，而且它最後證明是一個非常好的產品。

Well, I think we talked in the past about expanding areas that you currently are in. That is why I brought up the hay balers and the fact that with the drought, maybe hay balers aren't selling so well; something might be available out there.

嗯，我想我們過去談過擴展你們目前所在的領域。這也是我提到打草捆機的原因；再加上乾旱，可能打草捆機賣得不太好，外面或許會有一些可用的機會。

As far as Universal Harvester goes, there were some questions about the number of dealers.

至於 Universal Harvester，有一些問題是關於經銷商數量。

Yes.

是的。

Have you pretty well pared that down, and can you reveal that?

你們是否已經大致把它精簡下來了？你們能透露一下嗎？

They just kept adding (multiple speakers) under their website who had just bought anything. And yes, we are paring it down and we are doing a new website,

他們一直在（多位講者）他們的網站上新增那些只要買過任何東西的人。是的，我們正在精簡，而且我們正在做一個新的網站。

Just two weeks ago we introduced it to our salesmen in a sales meeting in Ames, and we have turned them loose to go out and sell it to the dealers. The sales at Universal Harvester were not very big to individual dealers. And there was a list of probably 20 names that meant something, and we believe with our salesmen on that we can enhance that line, because dealers do buy them. And, it's a very, very good line for us. It is fitting so well and is a contributor already and has been since the day we bought it.

就在兩週前，我們在 Ames 的一場銷售會議上把它介紹給我們的業務員，並且讓他們出去向經銷商推銷。Universal Harvester 對單一經銷商的銷售額並不大。名單上大概有 20 個名字是有意義的；我們相信讓我們的業務員去跑，可以強化這條產品線，因為經銷商確實會買。而且，這對我們來說是一條非常、非常好的產品線。它非常契合，也已經在貢獻營收，從我們買下它的那一天起就是如此。

Well, you revealed you did about $2 million in sales so far in Universal Harvester. Is that correct?

嗯，你們透露 Universal Harvester 目前為止大約做了 200 萬美元的銷售額。這是正確的嗎？

Yes, something like that.

是的，大概是那樣。

Are you expecting to do considerably more with that over next year?

你們預期明年會在這方面做出顯著更多的業績嗎？

Well, I don't know how much more to expect next year, but we do have about 10 salesman out there pushing it now that weren't available before -- weren't there before. They should be able to increase it some.

嗯，我不知道明年該期待增加多少，但我們現在大概有 10 位業務員在外面推這條線，這在以前是沒有的——以前沒有。他們應該能把它提升一些。

Well, that is a nuts-and-bolts line that should be easy to sell, if you can be competitive in the quickness of turning it around. I imagine that is the most important thing, besides the cost of the product, right?

嗯，那是一條「基本零組件」（nuts-and-bolts）的產品線，只要你們在交期／周轉速度上有競爭力，應該不難賣。我想除了產品成本之外，最重要的就是周轉速度，對吧？

Yes, but here is what it was like before. They had no literature, they had no salesmen, they went to no shows; they just sold basically by osmosis. They were kind to -- on the phone, very much so, very customer-oriented on the phone, took all their orders on the phone. And we think that some literature and some promotions and our salesmen out there, we can -- it is going to increase and do better for us.

是的，但以前的狀況是這樣：他們沒有任何型錄／文宣（literature），沒有業務員，也不參加任何展會；基本上就是靠「自然擴散」（osmosis）在賣。他們在電話上很友善，非常以客戶為導向，所有訂單都靠電話接。我們認為只要有一些文宣、一些推廣，再加上我們的業務員在外面跑，我們可以——它會成長，對我們會更好。

Okay. How about trade shows going forward? Do you have any planned?

好的。那未來的展會呢？你們有規劃嗎？

Yes, we do. We go every year to the -- well, there is AG CONNECT shows; the next one is in January and it's in Kansas City. We will be displaying there.

有的。我們每年都會參加——嗯，有 AG CONNECT 展；下一場在一月，地點在堪薩斯市。我們會在那裡展出。

But we display in probably 10 shows a year. The Farm Progress Show in Ames, Iowa is a big show for us. We attend -- I attended it and Carrie went with me this year, and we had a good show down there. We have a new sales manager that we think is going to improve our sales and he works with the salesmen a lot, and we think that we are going to be able to increase it. We have also just changed to a stronger -- much stronger ad agency for news releases and so on.

不過我們一年大概會參加 10 個展會。位於愛荷華州 Ames 的 Farm Progress Show 對我們來說是個大型展會。我們會參加——我有去參加，今年 Carrie 也跟我一起去，我們在那邊的展出效果不錯。我們有一位新的銷售經理，我們認為他會改善我們的銷售；他和業務員密切合作，我們認為我們能夠提升銷售。我們也剛換了一家更強——強很多的廣告代理商，負責新聞稿等等。

So I think we are -- these are for Ag direct releases, not financial. They are product releases, and we are optimistic about that as well. So I think, yes, I think it is pretty good -- looks pretty good to us going forward.

所以我想我們——這些是農業（Ag）面向的對外發布，不是財務面的。它們是產品發布，我們對此也很樂觀。所以我想，是的，我覺得——往前看，對我們來說看起來相當不錯。

Well, when you go to these trade shows, do you divide the booth up into the different product lines, which will include Universal Harvester now?

嗯，那你們去這些展會時，會把攤位分成不同的產品線展示嗎？現在也會包含 Universal Harvester 嗎？

Well, the Farm Progress Show, which was in August, we showed the reel, a sample of the reel. And we -- no, not every line goes to a show. Grinders go to all the shows, and we pick one or two or three products out of the other. Our booths are not mammoth, but we take what we think will do the most good in that area.

嗯，8 月的 Farm Progress Show（農業進步展）上，我們展示了捲盤（reel），一個捲盤樣品。而且我們——不，不是每一條產品線都會去參展。研磨機（Grinders）會去所有展會，而其他產品我們會挑一、兩個或三個。我們的攤位不算龐大，但我們會帶上我們認為在該地區最能發揮效益的產品。

Do you give them any incentive to buy at the show and come to the show?

你們會不會提供任何誘因，讓他們在展會上購買並來參加展會？

We give them incentives that whatever we take to the show doesn't have any freight on it. That is one of the things we do, but not beyond that.

我們提供的誘因是：我們帶去展會的產品都不收運費。這是我們做的其中一件事，但除此之外就沒有了。

It's still a big cost advantage, no freight.

這仍然是很大的成本優勢，沒有運費。

That's right. Some cost advantage to every show we go to. We go to one out in New York State, Empire State Farm Show, and it's quite an item from out there. But we don't want to haul it back home again.

沒錯。對我們參加的每一個展會來說都有一些成本優勢。我們會去紐約州那邊的一個展會，Empire State Farm Show（帝國州農場展），從那邊運回來是一筆不小的費用。但我們也不想再把它拖回家。

Well, now that you've released the earnings, going forward, I think the big question with the Company is vessels is going to show a loss -- showing a loss for the first nine months. What is the opportunity of going profitable next year?

那麼，既然你們已經公布了盈餘，往前看，我認為公司最大的問題是壓力容器（vessels）部門在前九個月將會呈現虧損——前九個月顯示虧損。明年轉虧為盈的機會有多大？

Well, I've said it before -- excellent. We lost -- the loss from operations this year was $108,000. The prior year, it was almost $500,000 -- it was $500,000. That is progress. It is not quite there, but we are getting closer every day. And we are running what I consider to be a very good operation, very clean, very productive, very efficient.

嗯，我以前就說過——非常好。我們今年營運虧損是 108,000 美元。前一年接近 500,000 美元——就是 500,000 美元。這是進步。還沒完全到位，但我們每天都更接近。我們正在運作我認為非常好的營運：非常整潔、非常有生產力、非常有效率。

We are now at the point where we got to step on the sales harder, and there was a time that wasn't possible because everything we had sold had been such poor quality that nobody wanted to buy. And we had to get reestablished worse than from new, because we had put out so much stuff that wasn't very good. But it's on the way. There is no doubt about it.

我們現在到了必須更用力推動銷售的階段；而以前有一段時間做不到，因為我們賣出去的東西品質太差，沒有人想買。我們必須重新建立信譽，甚至比新公司更難，因為我們曾經推出太多不太好的產品。但現在正在改善中，毫無疑問。

Well, when I look at the different divisions and I look at going forward, I guess the concern of any financial analyst or any investor is going to be Scientific had a great year this year. It's got a backlog. It looks like it's going to be very successful through the end of the year. The question is what can you do next year to duplicate this?

嗯，當我看不同事業部、再看未來走向時，我想任何財務分析師或投資人的疑慮會是：Scientific（科學事業部）今年表現非常好，有在手訂單（backlog），看起來到年底都會很成功。問題是明年你們要怎麼做才能複製今年的成果？

I think actually it's going to be pretty hard to duplicate it. But, we do have some very positive quotations out, we have a lot of activity again. The election will come into play on it. But it looks pretty good. It doesn't look bad at all.

我認為其實要複製會相當困難。不過，我們確實有一些非常正面的報價案在外面，也再次有很多活動。選舉會對此產生影響。但看起來相當不錯，並不差。

We have cut back our people currently. But we're in the last stages of that other one yet, and that will come into the year somewhat. But quite frankly, I think it's going to be difficult to do as well in the coming year as we have done this year with it.

我們目前已經縮減人員。但我們還在那個另一個案子的最後階段，它會在某種程度上延續到明年。不過坦白說，我認為明年要做到像今年這麼好會很困難。

Well, I am sure you have read the housing numbers.

嗯，我相信你已經看過房市數據了。

Yes (multiple speakers).

是的（多位發言者）。

And they are getting more bullish all the time. The homebuilders are doing better than expected. The coastal properties have buys on them, anywhere around coasts around the US.

而且它們一直變得更偏多。建商的表現比預期好。美國沿海地區的房產都有買盤，幾乎全美各地沿海都是如此。

The unemployment rate where I am at in Columbus, Ohio, is below 6%. It is hard to hire people that are qualified. There is huge numbers of warehousing jobs available. The oil and gas industry is going bananas with the fracturing. Workboot sales, which is an indication of people working, industrial workboot sales have increased tremendously. So I think some of this will have play on your industry. Quite a bit of it, actually.

我所在的俄亥俄州哥倫布市失業率低於 6%。很難雇到合格的人。有大量倉儲工作職缺。石油與天然氣產業因為水力壓裂（fracturing）而爆發式成長。工作靴銷售——這是人們在工作的一個指標——工業用工作靴銷售大幅增加。所以我認為其中一些會影響到你們的產業，而且其實會影響不少。

We hope so.

我們希望如此。

So a lot of the negativity you are hearing in the election, I would brush that aside because it is just not true. And I am in the Midwest, remember, in the core of the Midwest, the Rust Belt.

所以你在選舉中聽到的很多負面說法，我會把它放一邊，因為那不是真的。而且別忘了我在中西部，在中西部的核心地帶，也就是鐵鏽帶。

As far as farm machinery goes, planned acquisitions or any areas that you could fill in here to make the companies more solid?

就農業機械而言，有沒有計畫中的併購，或任何你們可以補強的領域，讓公司更穩健？

Well, I am constantly looking and I'm negotiating two different deals right now, but it takes a long time to put these deals together. And, I hope to get one of them done within the next few -- several months actually, between now and the first of the year. But that is still on my radar.

嗯，我一直在看，也正在談兩筆不同的交易，但把這些交易談成需要很長時間。而且我希望其中一筆能在接下來幾個——其實是接下來幾個月內，從現在到明年年初之間完成。但這仍然在我的雷達上。

Well, you're in a lot better cash position at the moment. Do you want to comment on that?

嗯，你們目前的現金狀況好多了。你想對此評論一下嗎？

Yes, sure. At the end of August, we had 600 and some thousand dollars worth of short-term debt. We currently don't have any, and we are in a pretty good cash position. So if we can find something that fits, we very easily can buy it, I think.

是的，當然。8 月底我們有 60 萬多美元的短期負債。目前我們一點都沒有，而且我們的現金部位相當不錯。所以如果我們能找到合適的標的，我想我們很容易就能買下來。

So we got to find that thing that fits and get it priced right and all that stuff. But I spend a great deal of time on that.

所以我們得找到那個合適的東西、把價格談對，以及所有那些事情。但我在這上面花了很多時間。

Okay. You just revealed you don't have any short-term debt and you had $600,000 in August. Long-term debt is standing at about what?

好的。你剛剛透露你們沒有任何短期負債，而 8 月時有 600,000 美元。那長期負債大約是多少？

$12 million.

1,200 萬美元。

Excuse me -- how much was that?

不好意思——你剛剛說多少？

$12 million. I'll tell you in a minute. Long-term debt is -- I'm looking in August. I don't know what it is. It is about -- it is at least $10 million. But it's all -- all the long-term debt is on mortgages, long-term mortgages. We borrowed all of the money to close the Universal Harvester, and we put a mortgage on the building there, and so on. But it's pretty much long-term debt.

1,200 萬美元。我等一下告訴你。長期負債是——我在看 8 月的資料。我不知道現在是多少。大約——至少有 1,000 萬美元。但全部——所有長期負債都是抵押貸款、長期抵押貸款。我們借了所有資金來完成 Universal Harvester 的結案，並在那棟建築上設定了抵押，等等。所以基本上都是長期負債。

One more question I wanted to ask you, and I am not sure this -- Sidoti had their estimates and you came out with your earnings. Would you like to comment on anything there?

我還有一個問題想問你，我不確定這——Sidoti 有他們的預估，而你們公布了盈餘。你想對那部分做任何評論嗎？

I have read them, of course, but I don't see anything wrong with them.

我當然讀過了，但我看不出有什麼不對。

Okay. Well, thank you. Great, great results this quarter, and people have to be impressed with the lack of short-term debt.

好的。謝謝你。本季的結果非常、非常好，人們也一定會對沒有短期負債印象深刻。

I like that too.

我也喜歡這點。

Erica, are there any other questions?

Erica，還有其他問題嗎？

[Matt Albret.]

[Matt Albret。]

Hi, this is [Matt Albret]; I'm a shareholder. Congratulations on a good quarter and a good year. A couple of my questions were answered by the last caller, but it was really in view of the three business segments and your perception on when Pressurized Vessels will turn around, and if the growth that we are seeing in the Modular Buildings is sustainable for the future.

嗨，我是 [Matt Albret]；我是股東。恭喜你們本季表現不錯、今年也不錯。我有幾個問題剛剛已被上一位來電者回答了，但我主要是從三個業務部門的角度來看：你們認為 Pressurized Vessels（加壓容器）何時會好轉，以及我們在 Modular Buildings（模組化建築）看到的成長是否能在未來持續。

Well, the improvement in Vessels is ongoing and it's going so well that we are fringing breakeven. And I think it's going to be better next year.

嗯，容器部門的改善正在持續，而且進展非常順利，我們已經接近損益兩平。我認為明年會更好。

Our reputation was really sullied by some of the stuff we did three or four years ago, and we have cleaned that up. We've put in a new manager in that plant, and if you were able to visit it, you could see a tremendous difference in just the cleanliness and the perception of it.

我們的聲譽確實因為三、四年前做的一些事情而受損，但我們已經把那些問題清理掉了。我們在那個廠導入了一位新經理，如果你能去參觀，你會看到非常大的差異，光是整潔度和外界觀感就差很多。

And then there was a customer in Illinois, a water company, that I begged -- he had some of our earlier product and he just -- he was so mad at me and he argued with me and gave me a bad time. And after we got going pretty well on this, which would have been six months ago or so, he -- I begged him to stop and look at our stuff as he went by. And he came over and had a look, and he said, oh, that is not the same place. And he immediately ordered about $50,000 worth of product.

然後伊利諾州有一位客戶，是一家水務公司，我曾經拜託——他用過我們早期的一些產品，他就是——他對我非常生氣，跟我爭論，讓我很難堪。在我們把這件事做得相當順之後，大概是六個月前左右，我——我拜託他路過時停下來看看我們的產品。他過來看了看，說，喔，那已經不是同一個地方了。然後他立刻下單了大約 50,000 美元的產品。

Well, some of them didn't even try my begging to come back, and --. But it's coming along so well that it's going to be profitable next year.

嗯，其中有些人甚至沒有嘗試回應我求他們回來的請求，而且——。但進展得非常順利，明年將會有利可圖。

The Modular Buildings is going to be harder to follow the year we just had, but we do have some business and we have a lot of quotations out, just a whole bunch of them, and some of them are fairly sizable. They are not as big as the one we did, but --. And so it's going to be very hard to duplicate, but it's not going to be a disaster by any means. We have some stuff on the books right now that [say that it can't be], and we have a lot of stuff working. So I am pretty -- I'm pretty optimistic there, but I am not as optimistic as (inaudible).

模組化建築要延續我們剛剛經歷的這一年會更難，但我們確實有一些業務，而且我們發出了很多報價，真的一大堆，其中有些規模相當可觀。它們沒有我們做過的那一單那麼大，但——。所以要複製那樣的成績會非常困難，但絕對不至於變成災難。我們目前帳上有一些東西（[說它不可能]），而且我們也有很多案子在推進。所以我相當——我相當樂觀，但沒有（聽不清）那麼樂觀。

Okay, but long-term, you see the growth potential there in the Modular (multiple speakers)?

好的，但從長期來看，你在模組化（多位發言者）那邊看到成長潛力嗎？

Oh, yes -- oh, my, yes.

喔，是的——天啊，是的。

Just a question on the Pressurized Vessels. Is that a separate sales force that manages the sales and marketing, or is that the same (multiple speakers)?

關於加壓容器有個問題。那是由一個獨立的銷售團隊負責銷售與行銷，還是同一個（多位發言者）？

Actually, at the moment, it is all inside sales -- almost. He does a few trips.

其實，目前幾乎全部都是內勤銷售——幾乎。他會出差幾趟。

Okay. But I am assuming the market for that particular product line is quite significant.

好的。但我想那條特定產品線的市場應該相當可觀。

Yes, it is. You're right.

是的，沒錯。你說得對。

Okay. Well, that's all I have for the moment. Thank you for your time.

好的。嗯，我目前就這些問題。謝謝你撥冗。

[Gary Balgue.]

[Gary Balgue。]

Yes, I live down in Freer, Texas, truck driver and investor, and I haul crude down here. And absolutely going crazy with the movement of steel tanks. And I was just wondering if you have any products that are built for the oilfield boom that is going on.

是的，我住在德州 Freer，是卡車司機也是投資人，我在這裡運原油。我看到鋼製儲槽的運輸量簡直瘋狂。我想請問你們是否有任何產品是為目前正在發生的油田榮景而打造的？

And another question was, do you make any products for irrigation? And the last question was are you hiring for your manufacturing process, and I will let you go.

另外一個問題是，你們有做任何灌溉用的產品嗎？最後一個問題是，你們的製造流程有在徵才嗎？我問完就不打擾了。

We are not making anything specifically for the fracking and so on. We are -- the majority of our business goes to water and high-pressure vessels and so, no. We have thought about it. We have sent our man up into North Dakota to have a look. But, those guys are all flat out -- they are non-pressure vessels, basically. They are holding tanks.

我們沒有做任何專門用於水力壓裂（fracking）之類的產品。我們——我們的大部分業務是做水用與高壓容器，所以沒有。我們有想過，也派我們的人去北達科他州看過。但那些傢伙都忙翻了——基本上是非壓力容器，就是儲存槽。

We like a high-pressure vessel, ASME approved. So, yes. What were the other two things you asked me?

我們喜歡高壓容器，要有 ASME 認證的。所以，是的。你剛剛另外兩個問題是什麼？

Whether you manufacture any kind of irrigation equipment and whether you are hiring for your plants?

你們是否製造任何灌溉設備，以及你們的工廠是否在徵才？

No, we are not doing any irrigation equipment. That is hot too, I know. And, we are currently not hiring anyplace. It is winter in the farm equipment business, and we do monitor that very closely. We try to keep it under control and do and when we have a slowdown, we would relieve a few people. But by and large, the numbers don't change very much, and the people we have -- they change a lot at Scientific because it's a big job and then they get nothing. And we keep a core crew there, but when we get a job like the one we just had, we bring people in.

不，我們沒有做任何灌溉設備。我知道那也很熱門。而且我們目前各地都沒有在徵才。農機產業冬季是淡季，我們會非常密切地監控。我們盡量把它控制住；當我們遇到放緩時，會讓少數人離開。但整體而言，人數變動不大。我們的人——在 Scientific 那邊變動很大，因為有時候是一個大案子，然後就沒案子了。我們會保留一個核心團隊，但當我們接到像剛剛那樣的案子時，就會再把人找進來。

Another thing we have done a little that changes our headcount a bit is that we used all subcontractors on more -- the recent buildings we had done and the big job we did. And prior to that, we always sent people out from the factory to do the fitting up and the setting these buildings, and now we just oversee it. That changes our headcount, some particularly on -- like this one that's 24 buildings, and --. But, [poor] irrigation, no tanks for fracking.

另外一件讓我們人數稍有變動的事是：在最近做的那些建築以及我們做的那個大案子上，我們更多採用分包商。以前我們總是從工廠派人出去做組裝與安裝這些建築，現在我們只是監督。這會改變我們的人數，尤其是——像這個有 24 棟建築的案子，還有——。但是，[可惜]，沒有灌溉設備，也沒有用於壓裂的儲槽。

Great. Appreciate it. Thanks.

很好。感謝你。謝謝。

Erica, is there any other questions?

Erica，還有其他問題嗎？

[Dennis Hutton.]

[Dennis Hutton。]

I just want to say congrats on the quarter. And I was just curious, with this modular contract flowing through at the end of this quarter, would you still anticipate revenue growth annually next year?

我只是想說恭喜這一季的表現。我想請教的是，這個模組化合約在本季末認列後，你們明年仍然預期年度營收會成長嗎？

On the Vessel -- excuse me, on the Scientific?

是指容器——不好意思，是指 Scientific？

Just across all three segments, do you anticipate revenue growth next year?

是指三個事業部整體而言，你們明年是否預期營收成長？

I wish I knew. The Ag Products and the Pressurized Vessels can go up. Modular Buildings had a huge year for them. It is going to be very difficult for them to do any increasing. Will the Ag Products Pressurized and Vessels throw off enough to put us above? I don't know. I would like to think so, but I don't know. We certainly -- and if we purchase something, that could make a contribution as well. But (multiple speakers) --

我希望我知道。農業產品與加壓容器可能會上升。模組化建築今年對他們來說是大豐收，他們要再增加會非常困難。農業產品與加壓容器能否貢獻足夠讓我們整體高於今年？我不知道。我願意相信可以，但我不知道。我們當然——而且如果我們收購了什麼，也可能會帶來貢獻。但（多位發言者）——

Okay. Do you have a rough estimate of what your net operating cash flow is? I know you said you paid down the short-term notes, but do you have a range? I know you guys don't file your 10-Q for a couple weeks, so --

好的。你們的營運活動淨現金流大概是多少？我知道你說你們償還了短期票據，但你能給個區間嗎？我知道你們要再過幾週才會提交 10-Q，所以——

What date do we file that, Carrie? Hello?

Carrie，我們什麼日期提交？喂？

Hello?

喂？

Can you hear me now?

你現在聽得到我嗎？

Yes, go.

聽得到，請說。

Okay. We will be filing our 10-Q later today. And our cash flow from operating activities at the end of August 31, 2012 was $2,207,000.

好的。我們會在今天稍晚提交 10-Q。截至 2012 年 8 月 31 日，我們的營運活動現金流為 2,207,000 美元。

Okay. Thank you very much.

好的。非常感謝。

For this -- for '12.

這是——針對 2012 年。

For nine months.

九個月的。

Yes, okay.

是的，好的。

Erica, next question, please.

Erica，請下一個問題。

(Operator Instructions) At this time, there are no further questions.

（接線生指示）目前沒有其他問題。

Ward, great call. Why don't you close it out then?

Ward，這通電話很棒。那你就做個結語吧？

Okay. Well, thank everybody for listening to us, and thank all the investors for investing in us. I noticed this morning the stock has really taken a big jump today so far, so perhaps it will give us all a lift this quarter, give us a lift on our stock price. And we're going to continue to work at it as hard as I know how and see if we can't get it bigger and better.

好的。嗯，感謝大家收聽，也感謝所有投資人投資我們。我注意到今天早上股價到目前為止真的大幅上漲，所以也許這一季能讓我們大家都振奮一下，也讓我們的股價有所提振。我們會繼續盡我所能努力經營，看看能不能把它做得更大、更好。

And I thank you so much -- I really thank you a lot for taking the time to listen to this. Thank you.

也非常感謝你——我真的非常感謝你花時間收聽。謝謝。

This concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝各位參與。