AerSale Corp (ASLE) 2024 Q2 法說會逐字稿

Good day and welcome to the Aerosol second-quarter 2024 earnings conference call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 Aerosol 2024 年第二季收益電話會議。（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Kristen Gallagher, HR Director. Please go ahead.

我現在想將會議交給人力資源總監克里斯汀·加拉格爾 (Kristen Gallagher)。請繼續。

Good afternoon. I'd like to welcome everyone to Aerosol's second-quarter 2024 earnings call. Conducting the call today are Nick Finazzo, Chief Executive Officer, and Martin Garmendia, Chief Financial Officer.

午安.我歡迎大家參加 Aerosol 的 2024 年第二季財報電話會議。今天主持電話會議的是執行長 Nick Finazzo 和財務長 Martin Garmendia。

Before we discuss this quarter's results, we want to remind you that all statements made on this call that do not relate to matters of historical fact should be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding our current expectations for the business and our financial performance. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results.

在我們討論本季度的業績之前，我們想提醒您，本次電話會議中所做的所有與歷史事實無關的聲明均應被視為聯邦證券法含義內的前瞻性聲明，包括有關我們當前預期的聲明為了業務和我們的財務表現。這些陳述既不是承諾也不是保證，而是涉及已知和未知的風險、不確定性以及其他可能導致我們的實際結果、績效或成就與任何未來結果有重大差異的重要因素。

Important factors that could cause actual results to differ materially from forward-looking statements are discussed in the risk factors section on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on March 8, 2024, and its other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those indicated by the forward-looking statements on this call.

可能導致實際結果與前瞻性陳述存在重大差異的重要因素在 2024 年 3 月 8 日向美國證券交易委員會提交的截至 2023 年 12 月 31 日止年度的 10-K 表格的風險因素部分進行了討論，並且向SEC 提交的其他文件。這些文件確定並解決了其他重要的風險和不確定性，這些風險和不確定性可能導致實際事件和結果與本次電話會議中的前瞻性聲明所顯示的內容有重大差異。

We'll also refer to non-GAAP measures that we view as important in assessing the performance of our business. A reconciliation of those non-GAAP metrics to the nearest GAAP metric can be found in the earnings presentation materials made available on the investor section of the AerSale website at ir.aersale.com.

我們也將參考我們認為對評估我們的業務績效很重要的非公認會計準則衡量標準。這些非 GAAP 指標與最接近的 GAAP 指標的調整可以在 AerSale 網站 ir.aersale.com 投資者部分提供的收益簡報資料中找到。

With that, I'll turn the call over to Nick Finazzo.

這樣，我會將電話轉給尼克·菲納佐。

Thank you, Kristen. Good afternoon, and thank you for joining our call. I'd like to begin today with a summary of the quarter and a review of our strategic objectives before turning the call over to Martin for a review of the numbers in greater detail.

謝謝你，克里斯汀。下午好，感謝您加入我們的通話。今天我想先對本季進行總結並回顧我們的策略目標，然後再將電話轉給馬丁以更詳細地回顧這些數字。

Our business continued to outperform prior year levels driven by stronger feedstock acquisitions in the back half of 2023. This improvement notwithstanding, our overall operating performance is well short of our plan as we have much greater capacity to output sellable inventory than we are inputting through the acquisition of feedstocks.

受 2023 年下半年原料收購強勁的推動，我們的業務表現持續優於去年水準。儘管有這樣的改善，我們的整體經營業績仍遠低於我們的計劃，因為我們輸出可銷售庫存的能力比我們透過收購原料輸入的能力要大得多。

In total, we reported second quarter revenue of $77.1 million, which was up 11.2% year-over-year from $69.3 million. This included $17.9 million of whole asset sales in 2024 compared to $17.6 million in the prior year. Excluding whole assets entirely, our revenue improved 14.3% driven by a steady inflow of sellable material post-repair, increased volume at our MRO facilities, and incremental sales of AerSale.

總的來說，我們第二季的營收為 7,710 萬美元，比去年同期的 6,930 萬美元成長了 11.2%。其中包括 2024 年總資產出售額 1,790 萬美元，而前一年為 1,760 萬美元。排除全部資產，我們的收入增長了 14.3%，這得益於維修後可售材料的穩定流入、我們的 MRO 設施銷量的增加以及 AerSale 銷量的增量。

Adjusted EBITDA also improved to a $3.2 million gain compared to a $0.5 million loss in 2023. As we remind investors every quarter, due to the nature of our business and the impact of whole asset sales, our revenue levels tend to be volatile quarter-to-quarter, and we believe our business is best assessed based on aggregate performance over a longer period of time with a focus on feedstock levels and the value our team is able to extract from these investments.

調整後 EBITDA 也從 2023 年的虧損 50 萬美元增加到 320 萬美元。正如我們每個季度提醒投資者的那樣，由於我們業務的性質和整體資產銷售的影響，我們的收入水平往往會按季度波動，我們相信最好根據長期的總體業績來評估我們的業務一段時間內，重點關注原料水平以及我們的團隊能夠從這些投資中獲得的價值。

Before turning to our segment-level discussion, I'd like to take a moment to zoom out and assess where we are in our traditional core business, putting aside prospects from our revolutionary enhanced flight vision system, AerAware. I'll also provide some color on what we're doing to address challenges and how we intend to maximize current opportunities that are driving favorable improvements.

在開始我們的細分市場討論之前，我想花點時間回顧一下我們在傳統核心業務中所處的位置，暫且不考慮我們革命性的增強型飛行視覺系統 AerAware 的前景。我還將介紹我們正在採取哪些措施來應對挑戰，以及我們打算如何最大限度地利用當前推動有利改進的機會。

I'll start with TechOps, where our MRO business has been a consistent performer and is well diversified to satisfy customer needs regardless of the commercial passenger or cargo backdrop. In times of heightened airline capacity, our facilities are busy performing aircraft recommissioning services and routine maintenance procedures on aircraft and their components.

我將從 TechOps 開始，我們的 MRO 業務一直表現穩定，並且多元化，無論商業客運或貨運背景如何，都能滿足客戶需求。在航空公司運力增加的時期，我們的設施正忙於對飛機及其零件進行飛機重新調試服務和日常維護程序。

As end markets decline, we serve as customers through aircraft decommission and storage services, as well as continuing to service aircraft components to allow operators to cost-effectively operate their remaining fleets. This has led to consistent performance across cycles, as seen through the trough of the pandemic and through the current recovery. We've made it a strategic priority to expand our MRO capacity through three projects that are also slated to come online toward the end of 2024 and into 2025.

隨著終端市場的下滑，我們透過飛機退役和儲存服務以及繼續為飛機零件提供服務來為客戶提供服務，以使營運商能夠經濟高效地運營其剩餘機隊。從大流行的低谷和當前的復甦來看，這導致了跨週期的一致表現。我們將透過三個專案擴大 MRO 能力作為策略重點，這些專案也計劃於 2024 年底和 2025 年上線。

First, we're in the final stages of installing the latest generation of equipment for the test and overhaul of pneumatic components at our Miami, Florida accessory shop. This project expands our capabilities beyond just servicing hydraulic components. We expect adding capabilities on pneumatic components will more than double our existing revenue base, with new customers bringing us repair work on midlife and current generation aircraft components.

首先，我們位於佛羅裡達州邁阿密的配件店正處於安裝最新一代設備測試和檢修氣動元件的最後階段。該項目擴展了我們的能力，而不僅僅是維修液壓部件。我們預計，隨著新客戶為我們帶來中期和當前一代飛機零件的維修工作，氣動部件的增加能力將使我們現有的收入基礎增加一倍以上。

Second, after a year and a half of planning and construction, we're also in the final stages of building out our new Miami, Florida facility, which increases our footprint to almost 90,000 square feet from approximately 30,000 square feet at our old facility, while adding more state-of-the-art equipment and capabilities to increase sales and throughput.

其次，經過一年半的規劃和建設，我們還處於建設佛羅裡達州邁阿密新工廠的最後階段，這將使我們的佔地面積從舊工廠的約 30,000 平方英尺增加到近 90,000 平方英尺，同時增加更多最先進的設備和能力，以提高銷售額和吞吐量。

And third, as we've discussed in the past, we're in the process of filling volume at our Millington, Tennessee on-airport MRO facility, which came online in the second quarter and consists of a single 112,000 square foot hangar with two narrow-body bays. This location provides us with on-airport capabilities in a central location of the United States and access to a qualified labor pool that will allow us to quickly scale up the facility.

第三，正如我們過去討論過的，我們正在填充田納西州米靈頓機場 MRO 設施的容量，該設施於第二季度投入使用，由一個 112,000 平方英尺的機庫和兩個機庫組成。海灣。該地點為我們提供了位於美國中心位置的機場能力以及合格的勞動力資源，使我們能夠快速擴大設施規模。

As these facilities begin to come online, although we expect they will contribute limited revenue in 2024, we anticipate significant step-ups throughout 2025. In total and at full capacity, which will occur incrementally as we build volume, we expect these expanded facilities to add at least $50 million in annual sales over the next few years.

隨著這些設施開始上線，儘管我們預計它們在 2024 年貢獻的收入有限，但我們預計 2025 年收入將大幅成長。總體而言，在滿載生產的情況下，隨著產量的增加，我們預計這些擴建的設施將在未來幾年內增加至少 5,000 萬美元的年銷售額。

With regard to the volatility created by whole asset sales, we recognize the desirability to smooth our operating performance quarter-to-quarter. As we've discussed, whole asset sales add significant dollars to EBITDA, given the large transaction value, but come at the expense of quarterly volatility. To some extent, this will always be the case for AerSale, as we believe it is prudent to include whole assets in our purpose-built model to maximize return on an investment.

對於整個資產出售造成的波動，我們認識到需要使我們的經營業績按季度平穩。正如我們所討論的，鑑於交易價值巨大，整體資產出售為 EBITDA 增加了大量資金，但是以季度波動為代價的。在某種程度上，AerSale 始終如此，因為我們認為將整個資產納入我們專門建立的模型中以最大化投資回報是謹慎的做法。

That said, our long-term strategic plan calls for greater focus on building our specialized leasing platform and increasing volume through the sale of USM. The effect of this initiative will take some time as we build the feedstock and deploy the assets, but should aid in predictability into our operations over the long-term.

儘管如此，我們的長期策略計畫要求更加重視建造我們的專業租賃平台，並透過出售 USM 來增加銷售量。隨著我們生產原料和部署資產，這項措施的效果將需要一些時間，但應該有助於我們長期營運的可預測性。

Regarding USM, market demand is very robust and end user prices are favorable. However, despite high demand and favorable pricing, we've been in a tight feedstock environment for some time now, as fewer used aircraft are available and competition is elevated amid reduced new aircraft OEM production and engine reliability issues.

USM方面，市場需求非常旺盛，終端用戶價格也很優惠。然而，儘管需求量很大且價格優惠，但我們一段時間以來一直處於原料緊張的環境中，因為可用的二手飛機較少，而且由於新飛機 OEM 產量減少和發動機可靠性問題，競爭加劇。

As we've discussed, feedstock is the lifeblood of our asset management business. So while we remain successful in finding and securing assets that can reach our ROI hurdles and are monetizing that inventory, which has driven improvements in our year-over-year results, it has been at a lower aggregate level relative to our available capacity.

正如我們所討論的，原料是我們資產管理業務的命脈。因此，雖然我們仍然成功地尋找和獲得能夠達到投資回報率障礙的資產，並將庫存貨幣化，這推動了我們同比業績的改善，但相對於我們的可用產能，它的總體水平一直較低。

These time periods simply do not last forever, and we would anticipate improvement as OEM production and deliveries alleviate some of the aftermarket supply-side pressure. We think it's strategically critical to remain disciplined in our acquisition approach, as the environment can and does turn quickly as passenger and cargo demand fluctuates and new aircraft become available.

這些時間段不會永遠持續下去，我們預計隨著 OEM 生產和交付緩解售後市場供應方的一些壓力，情況會有所改善。我們認為，在收購方式上保持紀律至關重要，因為隨著客運和貨運需求的波動以及新飛機的出現，環境可以而且確實會迅速轉變。

In 2023, we were successful in deploying more than $130 million of capital to feedstock acquisitions, which has been steadily placed into the repair process and has resulted in a continuous flow of USM fueling our growth in 2024.

2023 年，我們成功部署了超過 1.3 億美元的資金用於原料採購，這些資金已穩步投入修復流程，並導致 USM 源源不斷地流動，推動我們在 2024 年的成長。

Year-to-date, we've sold $46.6 million of USM, which is a $24.6 increase from the prior year. Longer term, and as supply-side dynamics allow, we have the capacity to more than double our feedstock program, which will serve to substantially improve our quarterly operating performance, allowing us to more consistently exceed our fixed-cost hurdles.

今年迄今為止，我們已售出 4,660 萬美元的 USM，比前一年增加了 24.6 美元。從長遠來看，在供應方動態允許的情況下，我們有能力將原料計畫增加一倍以上，這將有助於大幅改善我們的季度經營業績，使我們能夠更持續地超越固定成本障礙。

Lastly, on our 757 passenger-to-freighter conversion program, we were early to the market during the pandemic and enjoyed multiple years of elevated asset prices as cargo carriers scrambled to find lift during a period where demand far exceeded the supply of available cargo capacity. This demand was further amplified by the stay-at-home orders that fueled more volume of consumer goods through e-commerce channels.

最後，在我們的757 客改貨計劃中，我們在疫情期間很早就進入了市場，並且在需求遠遠超過可用貨運能力供應的時期，貨運公司爭先恐後地尋找升力，因此我們享受了多年的資產價格上漲。居家訂單進一步放大了這種需求，透過電子商務管道推動了消費品數量的增加。

Our timing was perfect to launch the 757 conversion program and a fantastic financial success in the early stages of the COVID pandemic, marking one of aviation's darkest periods. It carried our performance during extremely challenging times, resulting in one of the most successful programs in our company's history.

我們啟動 757 改裝計畫的時機非常完美，並在新冠疫情大流行的早期階段（標誌著航空業最黑暗的時期之一）取得了巨大的財務成功。它在極具挑戰性的時期保持了我們的表現，成為我們公司歷史上最成功的項目之一。

Fast-forwarding 18 months to today, we have seven remaining P2F converted 757s, but the demand backdrop has dramatically slowed for these types of aircraft as consumer trends normalized following the pandemic. This has led to a cooling of end-market demand for 757 freighters, which has slowed the monetization of these remaining assets. This effect happens in normal ebbs and flows of supply and demand in the used aircraft market, and there remains a long-term use case for these assets.

時間快轉 18 個月到今天，我們還剩下七架 P2F 改裝的 757 飛機，但隨著疫情後消費趨勢正常化，這類飛機的需求背景已大幅放緩。這導致終端市場對 757 貨機的需求降溫，減緩了這些剩餘資產的貨幣化速度。這種效應發生在二手飛機市場供需的正常波動中，而這些資產仍然存在長期使用案例。

We are fortunate that within the 757 family of converted freighter aircraft, ours are among the youngest in age and the most recently converted 757s available on the market, and therefore have a significant useful life and economic benefits over the much older existing 757 fleet.

我們很幸運，在757 改裝貨機系列中，我們的飛機是市場上機齡最年輕且最近改裝的757 飛機之一，因此比現有的老得多的757 機隊具有顯著的使用壽命和經濟效益。

After an 18-month lull in demand, customer interest in these aircraft is returning, particularly as cargo demand for the market niche our 757s are ideally suited for is recovering. We'll continue to monetize this flight equipment as we market to customer’s intent on expanding their existing fleets, upgrading from older equipment, or starting a new business through the sale or lease of whole aircraft and or their engines.

經過 18 個月的需求停滯之後，客戶對這些飛機的興趣正在回歸，特別是隨著我們 757 非常適合的利基市場的貨運需求正在復蘇。當我們向客戶推銷其現有機隊、升級舊設備或透過銷售或租賃整架飛機及其發動機開展新業務時，我們將繼續透過這種飛行設備貨幣化。

Taken together and looking through a longer-term lens, we expect to emerge as a stronger, more stable company driven by the following strategic priorities. One, a strengthened balance sheet as we monetize the remaining 757 freighters, enhancing our financial capacity to acquire more feedstock.

總而言之，從更長遠的角度來看，我們期望在以下策略重點的推動下成為更強大、更穩定的公司。第一，我們將剩餘的 757 架貨機貨幣化，從而增強了資產負債表，增強了我們獲取更多原料的財務能力。

Two, a larger, more sophisticated MRO operation with an expanded footprint that will provide more predictable and recurring revenue. And three, additional stability through the expansion of our specialized lease and USM portfolios. These initiatives are designed to enhance our baseline revenue substantially above our fixed cost hurdles and smooth out quarterly volatility.

第二，規模更大、更複雜的 MRO 業務，覆蓋範圍擴大，將提供更可預測的經常性收入。第三，透過擴展我們的專業租賃和 USM 產品組合來提高穩定性。這些措施旨在將我們的基準收入大幅提高到固定成本障礙之上，並消除季度波動。

Now, turning to our segments and beginning with asset management, second quarter sales were $41.8 million, which increased 12.8% year-over-year. Stronger revenue in the quarter mostly stemmed from better USM volume and an increase in engine leasing, as well as stable whole asset sales year-over-year. Excluding whole asset sales in both periods, segment level sales grew 21.1%.

現在，轉向我們的細分市場，從資產管理開始，第二季銷售額為 4,180 萬美元，年增 12.8%。本季營收的強勁成長主要源自於 USM 銷售量的增加和引擎租賃的增加，以及整體資產銷售年比的穩定。剔除這兩個時期的整體資產銷售，分部層級的銷售額成長了 21.1%。

In the quarter, we sold five engines compared to four engines and two unserviceable airframes in the year-ago period. Margins on current sales were 7.6% better than in the prior year as a result of improved market demand.

本季度，我們售出了五架發動機，而去年同期為四架發動機和兩架無法使用的機身。由於市場需求改善，目前銷售利潤比前一年提高了 7.6%。

Turning to our TechOp segment, second quarter sales continued to grow amid a strong commercial aerospace backdrop. Segment levels, segment revenue increased 9.4% to $35.3 million, compared to the year-ago period.

談到我們的技術營運部門，在強勁的商業航空航太背景下，第二季銷售額持續成長。分部層面，分部營收較去年同期成長 9.4%，達到 3,530 萬美元。

Growth was fairly widespread across our facilities as we took advantage of available capacity. And as I noted earlier, we expect to begin to see sales resulting from our incremental capacity investments toward the end of 2024 and into 2025.

由於我們充分利用了可用產能，我們的設施實現了相當廣泛的成長。正如我之前指出的，我們預計到 2024 年底和 2025 年，我們的增量產能投資將開始帶來銷售。

Engineered solutions also contributed to growth in the quarter as we began delivering AerSafe kits to customers needing to meet regulatory deadlines to comply with an FAA airworthiness directive targeting aircraft fuel quantity indication system wiring, for which AerSafe is a cost-effective and efficient solution. We expect AerSafe sales to continue to increase in the back half of the year, with an incremental step-up in 2025 and into 2026 as operators meet a November 2026 compliance deadline.

工程解決方案也促進了本季的成長，因為我們開始向需要在監管期間內遵守針對飛機燃油量指示系統佈線的 FAA 適航指令的客戶提供 AerSafe 套件，AerSafe 是一種經濟高效的解決方案。我們預計 AerSafe 的銷售額將在今年下半年繼續成長，隨著營運商在 2026 年 11 月的合規截止日期前完成任務，2025 年和 2026 年將出現增量成長。

To date, we have a backlog of over $13 million in orders of AerSafe and are continuing our marketing efforts on this project. I encourage anyone interested in understanding more about this product to view our AerSafe installation videos available on the AirSale website.

迄今為止，我們的 AerSafe 訂單已積壓超過 1300 萬美元，並且正在繼續對該項目進行行銷工作。我鼓勵任何有興趣了解更多有關此產品的人觀看 AirSale 網站上提供的 AerSafe 安裝影片。

Turning to an update on AerAware, customer feedback continues to be overwhelmingly positive, and within our active sales pipeline, we're making progress with our potential launch customers. As we noted last quarter, the addressable market is diverse in size and types of operators, and each has a different approval process. With some of our largest potential customers, we have a nice head start as we've been familiarizing them with the product through the approval process for several years.

談到 AerAware 的更新，客戶回饋仍然非常積極，並且在我們活躍的銷售管道中，我們正在與潛在的啟動客戶取得進展。正如我們上季度所指出的，潛在市場的規模和運營商類型各不相同，每個市場都有不同的審批流程。對於我們一些最大的潛在客戶來說，我們有一個很好的開端，因為我們多年來一直透過審批流程讓他們熟悉產品。

Other potential customers are just getting to know AerAware since FAA approval last December. The commercialization time is proving to be much longer than we originally anticipated and highly dependent on customer availability. However, based on continued feedback, we remain confident that it is a question of when, not if, operators begin to adopt AerAware.

自去年 12 月獲得 FAA 批准以來，其他潛在客戶才剛開始了解 AerAware。事實證明，商業化時間比我們最初預期的要長得多，並且高度依賴客戶的可用性。然而，根據持續的回饋，我們仍然相信營運商何時開始採用 AerAware 是一個問題，而不是是否開始採用的問題。

We'll be busy in the third quarter with multiple customers scheduled for visits or flight demonstrations, and we're encouraged that in several cases it is with a broader group of internal decision makers at the prospective customers.

第三季我們將忙於安排多個客戶進行參觀或飛行演示，令我們感到鼓舞的是，在某些情況下，潛在客戶中有更廣泛的內部決策者群體。

In closing, our business is improving from the lows of 2023 based on available ready-to-sell inventory flowing from our feedstock acquisitions, and we're optimistic about the back half as new MRO facilities begin to come online and drive incremental revenue and margin. We're committed to driving cash flow through the monetization of our last 757s and remain disciplined in our capital allocation as we navigate through a challenged supply side for feedstock.

最後，我們的業務正在從2023 年的低點開始改善，這是基於我們的原料收購帶來的可用的現成庫存，隨著新的MRO 設施開始上線並推動收入和利潤的增量，我們對下半年持樂觀態度。我們致力於透過最後一架 757 的貨幣化來推動現金流，並在應對原料供應方面的挑戰時保持嚴格的資本配置。

I want to thank our dedicated employees for their hard work and our investors for their continued support. We look forward to updating you on our future progress.

我要感謝我們敬業的員工的辛勤工作和投資者的持續支持。我們期待向您通報我們未來的進展。

Now I'll turn the call over to Martin for a closer look at the numbers. Martin?

現在我將把電話轉給馬丁，讓他仔細看看這些數字。馬丁？

Thanks, Nick. Second quarter revenue was $77.1 million, which included $17.9 million of flight equipment sales comprising of five engines. Our revenue in the second quarter of 2023 was $69.3 million and included $17.6 million of flight equipment sales consisting of four engines and two unserviceable airframes. Excluding flight equipment, the company continues to demonstrate underlying growth as our base revenue increased to $59.2 million from $51.8 million in the prior year.

謝謝，尼克。第二季營收為 7,710 萬美元，其中包括 1,790 萬美元的飛行設備銷售（包括五台發動機）。我們 2023 年第二季的收入為 6,930 萬美元，其中包括 1,760 萬美元的飛行設備銷售，其中包括四個引擎和兩個無法使用的機身。不包括飛行設備在內，該公司繼續展現出潛在的成長勢頭，我們的基本收入從上一年的 5,180 萬美元增至 5,920 萬美元。

As we have pointed out in the past, flight equipment sales fluctuate significantly from quarter-to-quarter, and we believe monitoring our progress based on asset purchase and sales over the long-term is more appropriate.

正如我們過去所指出的，飛行設備銷售逐季度波動較大，我們認為根據長期資產購買和銷售來監控我們的進度更為合適。

Second quarter gross margin was 28.2% compared to 29.1% in the second quarter of 2023. As a result, the sales mix and reduced margins at the company's component MRO facilities as the units gained efficiencies on recently awarded contracts.

第二季毛利率為 28.2%，而 2023 年第二季毛利率為 29.1%。結果，隨著最近授予的合約的效率提高，該公司組件 MRO 設施的銷售組合和利潤率下降。

Selling general administrative expenses were $23.6 million in the second quarter of 2024, which included $1.1 million of stock-based compensation expenses. Selling, general administrative expenses were $27.1 million in the second quarter of 2023 and included $3 million of stock-based compensation expenses.

2024 年第二季的銷售一般管理費用為 2,360 萬美元，其中包括 110 萬美元的股票補償費用。2023 年第二季的銷售和一般管理費用為 2,710 萬美元，其中包括 300 萬美元的股票補償費用。

Second quarter 2024 loss from operations was $1.9 million, while loss from operations was $7 million in the second quarter of 2023. GAAP net loss was $3.6 million in the first quarter compared to $2.7 million in the second quarter of 2023, with a decline cost from a lower mark-to-market benefit on the warrant liability and higher interest expense.

2024 年第二季營運虧損為 190 萬美元，2023 年第二季營運虧損為 700 萬美元。第一季 GAAP 淨虧損為 360 萬美元，而 2023 年第二季淨虧損為 270 萬美元，原因是認股權證負債按市值計算的收益較低以及利息費用較高，導致成本下降。

Adjusted for non-cash equity-based compensation, mark-to-market adjustment to the private warrant liability, and facility relocation costs, second quarter adjusted net loss was $2.6 million, while adjusted net loss was $0.6 million in the second quarter of 2023.

根據非現金股權補償、私募認股權證負債以市價調整以及設施搬遷成本進行調整後，第二季調整後淨虧損為 260 萬美元，而 2023 年第二季調整後淨虧損為 60 萬美元。

Second quarter diluted loss per share was $0.07 compared to $0.08 in the second quarter of 2023. Excluding the adjustments mentioned above, second quarter adjusted diluted loss per share was $0.05 compared to $0.03 for the second quarter of 2023.

第二季攤薄每股虧損為 0.07 美元，而 2023 年第二季攤薄每股虧損 0.08 美元。在排除上述調整後，第二季調整後攤薄每股虧損為 0.05 美元，而 2023 年第二季為 0.03 美元。

Our adjusted EBITDA was $3.2 million in the second quarter of 2024, compared to a loss of $0.5 million in the prior year. The increase in adjusted EBITDA was primarily due to higher revenue and lower expenses for the period.

2024 年第二季度，我們調整後的 EBITDA 為 320 萬美元，而前一年則虧損 50 萬美元。調整後 EBITDA 的增加主要是由於該期間收入增加和費用減少。

Cash used in operating activities was $36.8 million, primarily due to cash deployed to increase our inventory availability. Further, in April of 2024, our secondary parts warehouse in Roswell, New Mexico, was destroyed in a fire. This led to the loss of various USM parts, which carry a market value of $52.8 million and a book value of $6 million. In our 10-Q, we recorded a balance sheet impairment of $6 million related to the loss and a non-trade receivable within deposits, prepaid on expenses, and other current assets of $6 million, which we deem probable of recovery. Our maximum payout on our policy is $50 million, of which we have made a claim on the entire amount, subject to a $10,000 deductible.

經營活動使用的現金為 3,680 萬美元，主要是為了增加庫存可用性而部署的現金。此外，2024 年 4 月，我們位於新墨西哥州羅斯威爾的二級零件倉庫在一場火災中被摧毀。這導致了各種 USM 零件的損失，這些零件的市場價值為 5,280 萬美元，帳面價值為 600 萬美元。在我們的10-Q 季度中，我們記錄了與損失相關的600 萬美元的資產負債表減值，以及存款、預付費用和其他流動資產中的非貿易應收款600 萬美元，我們認為有可能收回。我們的保單最高賠償額為 5,000 萬美元，我們已對其中的全部金額提出索賠，但免賠額為 10,000 美元。

As we look to the second half of the year, we expect to see continued demand in our TechOps segment, with further improvement in 2025 as we benefit from the MRO investments that Nick mentioned earlier. We look forward to updating the investor community in the coming quarters as we execute on our strategy to monetize the remaining 757s we have in our portfolio, while deciding the best way to redeploy this capital as we navigate through a constrained feedstock environment, while ensuring that we remain disciplined capital allocators, pursuing only opportunities that meet our ROI criteria, and that benefit from our multidimensional value extraction model that is unique in the industry.

展望今年下半年，我們預計 TechOps 領域的需求將持續成長，並在 2025 年進一步改善，因為我們受益於 Nick 之前提到的 MRO 投資。我們期待在未來幾季向投資者社群通報最新情況，同時執行我們的策略，將投資組合中剩餘的757 飛機貨幣化，同時在原料環境受限的情況下決定重新部署這筆資金的最佳方式，同時確保我們仍然是紀律嚴明的資本配置者，只追求符合我們的投資回報率標準的機會，並受益於我們在行業中獨一無二的多維價值提取模型。

Overall, we remain bullish on the long-term trajectory of the business as we continue to make progress with our go-to-market strategy for AerAware, increased AerSale sales, and continue to grow our USM, leasing, and MRO businesses in a robust market.

總體而言，我們仍然看好該業務的長期發展軌跡，因為我們將繼續在 AerAware 的上市策略方面取得進展，增加 AerSale 銷售額，並繼續強勁地發展我們的 USM、租賃和 MRO 業務。

With that, Operator, we are ready to take questions.

至此，接線員，我們準備好回答問題了。

(Operator Instructions)

（操作員說明）

Bert Subin, Stifel

伯特蘇賓、史蒂菲爾

Nick, maybe just to start out on the inventory side, can you just give us some more color there, just trying to understand? We've seen sort of continued sequential increases in inventory. It seems like a market where there's certainly demand for USM and demand for whole assets. Can you just talk about why that's going up and not down right now?

尼克，也許只是從庫存方面開始，你能給我們更多的信息，只是想理解嗎？我們已經看到庫存持續連續增加。這似乎是一個對 USM 和整個資產都有需求的市場。能談談為什麼現在還在上升而不是下降嗎？

Some of it relates to completing the conversions on our 757s. So, I mean, you're looking at the total inventory, right. As we complete those conversions, costs of those conversions are being added to our inventory value. We are taking delivery of AerAware kits that are coming out of Universal, so that's adding some to our inventory as well.

其中一些與完成我們的 757 飛機的改裝有關。所以，我的意思是，您正在查看總庫存，對吧。當我們完成這些轉換時，這些轉換的成本將會添加到我們的庫存價值中。我們正在接收來自 Universal 的 AerAware 套件，因此我們的庫存也增加了一些。

And we continue to be opportunistic in finding feedstock that we're acquiring for future sale as whole assets, leases, or breakdown to USM. The timing continues to take a while to turn that into sellable inventory. So it's a combination of those three things as to why the inventory is growing.

我們繼續機會主義地尋找我們正在收購的原料，以便將來作為整體資產、租賃或分解給 USM 出售。將其轉化為可銷售庫存的時機仍然需要一段時間。因此，庫存成長的原因是這三件事的結合。

So maybe as we think about it, I know you guys are not giving formal guidance right now, but I feel like expectations have been a little all over the place as we think about sort of your revenue and EBITDA. But as you sit here almost, now I guess a month and change past halfway through with the year, like what are you seeing in the second half?

因此，也許當我們思考這個問題時，我知道你們現在沒有提供正式的指導，但我覺得當我們考慮你們的收入和 EBITDA 時，期望有點過高。但當你幾乎坐在這裡時，現在我猜一個月，一年過去了一半，就像你在下半年看到了什麼？

I mean, is the second half shaping up better than the first half? Are you starting to see some of the challenges you had sort of unfurl? And what's sort of the, just I guess the broader viewpoint for the second half of the year?

我的意思是，下半場的表現比上半場好嗎？您是否開始看到自己面臨的一些挑戰？我想下半年的更廣泛的觀點是什麼？

I think, as we look at the second half overall, we're seeing good prospects from ability to sell engines. In fact, we sold three engines in the first month alone at very good margins. So we're seeing opportunities there. As you noted on the inventory kind of pickup, a lot of that is also we're preparing inventory, including whole assets for either lease or overall sales. So that's contributing to that. We're starting to add assets into the leasing portfolio, which is also, again, one of our long-term strategies to start increasing that overall business.

我認為，從下半年的整體情況來看，我們看到了引擎銷售能力的良好前景。事實上，光是第一個月我們就以非常高的利潤銷售了三台引擎。所以我們在那裡看到了機會。正如您在庫存類型的提貨中所指出的，其中許多也是我們正在準備庫存，包括用於租賃或整體銷售的全部資產。這就是促成這一點的原因。我們開始將資產加入租賃組合中，這也是我們開始增加整體業務的長期策略之一。

And then lastly, we're seeing improvements in our MRO side of our business. We've talked about some of the investments that we're making on the component MRO side and also that we've won some significant contracts at the end of the year. So we're starting to get that volume to flow through. We're improving our utilization of our labor, so improving our margin profile in that side of the business.

最後，我們看到我們的 MRO 業務有所改善。我們已經討論了我們在組件 MRO 方面進行的一些投資，並且我們在年底贏得了一些重要合約。所以我們開始讓這個體積流通。我們正在提高勞動力的利用率，從而改善我們在該業務方面的利潤狀況。

So we're seeing a pickup on that side as well. And also, as Nick has noted in his remarks, some pickup on AerSafe sales as well. So all of the things are definitely in a forward projection and looking more favorable in the second half than in the first half.

所以我們也看到那邊有一輛皮卡。而且，正如尼克在演講中指出的那樣，AerSafe 的銷量也有所回升。因此，所有的事情肯定都在向前預測中，下半場看起來比上半場更有利。

Just one more, and I'll pass it back over. On AerAware, it seems like you guys have moved down this path in sort of marketing. It seems like the pilot testimonials are really positive, and obviously it's an interesting product.

再來一張，我會把它傳回去。在 AerAware 上，你們似乎已經在行銷方面沿著這條路走下去了。看起來試點的評價確實很積極，顯然這是一個有趣的產品。

Can you give us just an update of, I think it was STC was received in December, and so here we are in August. Where are we from an inning perspective, you think, in sort of landing that first customer? Is that something that you're thinking about as like a 2025 outcome? You said it's when, not if, so I'm just trying to understand sort of what your confidence level is now that you've been through several months of the marketing process for the product.

您能給我們更新嗎？您認為，從每一局的角度來看，我們在吸引第一個客戶方面處於什麼位置？您是否正在考慮 2025 年的結果？你說的是何時，而不是如果，所以我只是想了解你的信心水平是多少，因為你已經經歷了幾個月的產品行銷過程。

We're talking to both very large and very small customers. The easiest one to get equipment delivered would be a small one. A larger customer is going to take much longer to be able to start spooling a large customer too, reconfigure their airplanes, do simulators, get all their flight training done, etcetera. It doesn't mean we won't have an order. It just means that if it's a larger customer, it may be a while before they can actually start using the equipment.

我們正在與非常大和非常小的客戶進行交談。最容易交付的設備是小型設備。一個大客戶將需要更長的時間才能開始為大客戶提供服務，重新配置他們的飛機，做模擬器，完成所有的飛行訓練，等等。這並不意味著我們不會收到訂單。這只是意味著，如果是較大的客戶，他們可能需要一段時間才能真正開始使用設備。

In the case of the customer that we've been dealing with for, I don't know, it seems like since the very beginning we started this whole certification process, they remain interested. We've got four different customers that will be flying our test aircraft starting this week, starting two this week, and one next week, and I think one right after that. Two of those are large. Two of those are small.

就我們一直在處理的客戶而言，我不知道，似乎從我們一開始就開始整個認證過程，他們仍然感興趣。我們有四位不同的客戶將從本週開始駕駛我們的測試飛機，本週開始有兩架，下週有一架，我想在那之後就有一架。其中兩個很大。其中兩個很小。

So, It's so hard for me to predict which one of those will be the first to place an order and when we'll be able to deliver product. However, we have product. We've built up an inventory as I mentioned before. We've got 150 kits of our own in stock, and we're receiving kits that we ordered from Elbit Universal. Those kits are now being produced and delivered. And inventory to kind of make sure that we've got enough to fulfill any initial order that we get.

因此，我很難預測其中哪一個將第一個下訂單以及我們何時能夠交付產品。不過，我們有產品。正如我之前提到的，我們已經建立了庫存。我們有 150 個自己的套件庫存，並且我們正在接收從 Elbit Universal 訂購的套件。這些套件現在正在生產和交付。庫存可以確保我們有足夠的庫存來滿足我們收到的任何初始訂單。

When will we get that? I'm not going to commit to that because it could be as soon as in the next several months. It could take us six months or longer. And I hate giving you that kind of answer, but I just really have no way to know.

我們什麼時候能得到那個？我不會對此做出承諾，因為最快可能會在接下來的幾個月內實現。我們可能需要六個月或更長時間。我討厭給你這樣的答案，但我真的無從得知。

But maybe just a clarification there. You don't think this is a situation where it's like multiple years? You think it's still measured in months?

但也許只是一個澄清。你不認為這是一個多年的情況嗎？你以為還是以月來衡量？

I don't think it's going to be multiple years, correct. I think the sale of this product will go out 5 to 10 years, and I think this is a 5 to 10 year delivery to the industry. It doesn't mean it's going to take 5 to 10 years, but it will, from the day we start delivering, I think that's probably going to be at least 5 years to 10 years of deliveries, if not longer, especially as the product evolves and is upgraded.

我認為這不會持續很多年，對吧。我認為這個產品的銷售會持續5到10年，我認為這是一個5到10年的交付給產業。這並不意味著需要 5 到 10 年的時間，但從我們開始交付的那一天起，我認為可能需要至少 5 年到 10 年的交付時間，如果不是更長的話，尤其是作為產品進化併升級。

Ken Herbert, RBC Capital Markets

肯‧赫伯特，加拿大皇家銀行資本市場

Good afternoon, Nick and Martin's afternoon. --

下午好，尼克和馬丁的下午。--

I wanted to, Nick, first ask you about sort of you're making some investments in your MRO capability. It looks like that business today is on sort of an annual, call it 110-ish million sort of run rate. But what's capacity utilization at with your existing MRO footprint, sort of ahead of the expansions you're making in the new facilities?

尼克，我想先詢問您是否正在對 MRO 能力進行一些投資。現在看來，該業務的運行速度約為每年 1.1 億左右。但是，在新設施的擴展之前，您現有的 MRO 佔地面積的產能利用率是多少？

I don't know that number off the top of my head. --

我根本不知道這個數字。--

I'll tell you right now that our utilization, we have a lot of capacity still available, even without the overall improvements that we've made. In our landing gear facility, again, as a reminder, that was pretty much a new facility, opened up about a year and a half ago. We've made inroads with new customers, bringing in new kind of contracted gears that will be coming in. So we're going to start filling up that business.

我現在就告訴你，即使我們沒有做出整體改進，我們的利用率仍然有很多可用容量。再次提醒大家，在我們的起落架設施中，這幾乎是一個新設施，大約一年半前投入使用。我們已經與新客戶取得了進展，引入了即將推出的新型合約裝備。因此，我們將開始填補該業務。

We're already seeing other prospects that potentially we can even exceed, kind of, our current capacity at that unit. At our accessory shop, one of the investments that we did on adding pneumatics is that it will also bring customers that would take advantage of hydraulic and other types of activities that we do.

我們已經看到了其他前景，我們甚至有可能超過該部門目前的產能。在我們的配件店，我們在增加氣動裝置方面所做的投資之一是，它還將帶來能夠利用我們所做的液壓和其他類型活動的客戶。

So we've been successful there in being able to gear up, being able to get the overall qualified staff. And we absolutely have the ability not only to grow the existing facilities, but also based on the investments that we've made, have an additional revenue stream, which is the $50 million that Nick noted in his remarks.

因此，我們在這方面取得了成功，能夠做好準備，並且能夠獲得整體合格的員工。我們絕對有能力不僅擴大現有設施，而且基於我們所做的投資，獲得額外的收入來源，即尼克在演講中指出的 5000 萬美元。

I guess what I'm getting at is, I mean, as you fill the existing footprint and you layer in the new capacity, I mean, could the MRO footprint alone sort of exiting 2025 be potentially a $200 million business? And if we're looking at those kind of numbers, maybe just rough ballpark of sort of normalized, what kind of EBITDA margins you think the MRO business should support?

我想我的意思是，當你填補現有的足跡並增加新的產能時，我的意思是，到 2025 年，僅 MRO 足跡是否就可能產生 2 億美元的業務？如果我們看這些數字，也許只是標準化的粗略估計，您認為 MRO 業務應該支持什麼樣的 EBITDA 利潤率？

I think absolutely. Our plan, and as Nick noted, part of our strategic plan has been to grow the overall MRO business and to more than double that. And we're in a very good position with the Millington Additions having a very good location in our goodyear OnAirport MRO to be able to do that.

我認為絕對是。我們的計劃，正如尼克指出的，我們戰略計劃的一部分是發展整體 MRO 業務，並將其增長一倍以上。我們處於非常有利的位置，Millington Additions 在我們的固特異 OnAirport MRO 中擁有非常好的位置，能夠做到這一點。

As far as margin profiles, obviously that will vary depending on the actual customers that we bring in overall. So that's hard to kind of estimate at this moment. What I can say is we are right now in our P&L kind of absorbing a lot of these incremental costs to be able to bring in the business.

就利潤率而言，顯然這會根據我們整體引入的實際客戶而有所不同。所以目前很難估計。我能說的是，我們現在的損益表正在吸收大量增量成本，以便能夠引入業務。

So when it comes to facilities, we already have the expanded facilities. We're incurring those higher facility costs. When it even comes to personnel, we've had to make sure that we have qualified mechanics and technicians so that when we showcase the facilities, people can see that we have the talent and not only the equipment to be able to do the work. So what we're confident is as we start filling in those units, margin profiles will improve not only from a gross margin perspective but from an EBITDA perspective as well.

所以說到設施，我們已經有了擴建的設施。我們正在承擔更高的設施成本。即使在人員方面，我們也必須確保我們擁有合格的機械師和技術人員，以便當我們展示設施時，人們可以看到我們擁有能夠完成這項工作的人才，而不僅僅是設備。因此，我們有信心的是，當我們開始填充這些單位時，利潤率狀況不僅會從毛利率的角度來看，而且從 EBITDA 的角度也會有所改善。

Okay.

好的。

Just one final question. As you look at the build of sort of inventory and all the acquisitions you're making in terms of whole assets and flight equipment, is there any risk that the carrying value of some of this inventory might not match the market value as you look to eventually sell some of it? I'm just trying to get at sort of potential balance sheet risk as you look at what you've built and as you market test sort of what you've acquired over the last few years.

最後還有一個問題。當您查看某種庫存的構建以及您在整個資產和飛行設備方面進行的所有收購時，是否存在某些庫存的賬面價值可能與您期望的市場價值不匹配的風險最終賣掉一些嗎？我只是想了解潛在的資產負債表風險，當你審視自己所建立的產品以及對過去幾年所獲得的產品進行市場測試時。

No, we don't feel we have any risk. We look at our inventory cost-carrying basis all the time, whether it be fixed assets, assets held for lease or sale or USM inventory, and we don't feel we have any issue with the actual value of the equipment being less than our book value.

不，我們不認為我們有任何風險。我們一直關注我們的庫存成本會計基礎，無論是固定資產、持有用於租賃或出售的資產還是USM庫存，我們不認為設備的實際價值低於我們的價值有任何問題。

Yes, Ken, if I could add, we're very cautious when we allocate capital. We have a proprietary model. We look at a 25% IRR. In fact, that's why probably in the last couple of, probably the last 18 months, we haven't bought as much feedstock as we would like, which is Nick's comment on we could process a whole lot more.

是的，肯，如果我可以補充一點，我們在分配資本時非常謹慎。我們有一個專有的模型。我們的 IRR 為 25%。事實上，這就是為什麼可能在過去的幾個月裡，可能是在過去的 18 個月裡，我們沒有購買我們想要的那麼多原料，這是 Nick 的評論，我們可以處理更多的原料。

But we always have exactly what you're talking about as a risk in our mind, which is what we always value the inventory, understanding how the market dynamics could change, and we're staying disciplined in that overall. I mean, just to give you an example, we bid in the current quarter almost $600 million of feedstock, and we had a win rate of around 6%. So that's lower than our historical, and we're okay with that because, again, we want to make sure that when we deploy capital, we are comfortable that we're going to recover the investment and make our expected returns.

但我們始終將您所說的風險牢記在心，這就是我們始終重視庫存的價值，了解市場動態可能如何變化，並且我們在整體上保持紀律。我的意思是，舉個例子，我們在本季投標了近 6 億美元的原料，我們的得標率約為 6%。因此，這低於我們的歷史水平，我們對此表示同意，因為我們再次希望確保，當我們部署資本時，我們確信我們將收回投資並獲得預期回報。

Pete Osterland, Truist Securities.

皮特‧奧斯特蘭 (Pete Osterland)，Truist 證券公司。

Hey, good evening. I'm on for Mike Ciarmoli. Thanks for taking the question.

嘿，晚上好。我代表麥克·恰爾莫利。感謝您提出問題。

So first, I wanted to ask on AerAware. I was just wondering how many kits you currently have in inventory and whether you're still building more inventory there. And just in general, how quickly can your supply chain ramp up delivery of kits if a major order comes in?

首先，我想在 AerAware 上詢問。我只是想知道你們目前庫存中有多少套件以及你們是否仍在建立更多庫存。一般來說，如果收到大訂單，您的供應鏈能夠以多快的速度增加套件的交付？

As I said before, we've built 150 kits. We are not producing any more kits right now because we feel realistically it probably would take a year to put 150 kits in an airplane or in airplanes to start. But we have the capacity because we have the infrastructure, we have the people to basically ramp production of kits back up using our existing facility at the rate of between 10 to 20 kits a month, depending on how many people we want to put on it.

正如我之前所說，我們已經製造了 150 個套件。我們現在不會生產更多的套件，因為我們實際上認為可能需要一年的時間才能將 150 個套件安裝到飛機上或開始安裝在飛機上。但我們有能力，因為我們有基礎設施，我們有人員基本上可以使用我們現有的設施以每月 10 到 20 個套件的速度增加套件的生產，具體取決於我們想要投入多少人。

And as I've also said before, Pete, that we don't think we do it the most cost effective and efficient way. We think that people who do some of the kit pieces that we work, that we've been working on, which are wire harnesses, complex wire harnesses, we think there are other companies that could do that maybe faster and more cost-effective than we can. We've not taken advantage of that because we wanted to understand completely what it would take to build a kit, doing it our way, which again, that may not be the most efficient way.

正如我之前所說，皮特，我們認為我們這樣做並不是最具成本效益和最有效的方式。我們認為，那些做我們一直在研究的一些套件的人，這些套件是線束，複雜的線束，我們認為還有其他公司可以比這更快、更具成本效益地做到這一點。我們沒有利用這一點，因為我們想完全了解建立一個套件需要什麼，以我們的方式來做，這可能不是最有效的方式。

So we know we were able to produce roughly 15 sets a month, and we know what our cost is, and we're very satisfied that our cost is in line or lower than our original expectations. And candidly, we'd like to think that if we had to double or triple that capacity, we could farm that out to third parties and that they would do it for a better price than our internal cost would be.

因此，我們知道我們每月能夠生產約 15 套，我們也知道我們的成本是多少，而且我們對成本符合或低於我們最初的預期感到非常滿意。坦白說，我們認為，如果我們必須將產能增加一倍或三倍，我們可以將其外包給第三方，他們會以比我們內部成本更好的價格來做到這一點。

That's helpful. Thanks. And then I wanted to ask one on AerSafe as well. What does the competitive landscape look like there? Are there alternatives in the marketplace or is AerSafe the only option in order for operators to comply with this FAA requirement?

這很有幫助。謝謝。然後我也想問一個關於 AerSafe 的問題。那裡的競爭格局是什麼樣的呢？市場上有其他選擇，或者 AerSafe 是營運商遵守 FAA 要求的唯一選擇嗎？

So the option for AerSafe, it comes from the OEM, which is a nitrogen system that removes oxygen from the fuel tanks. Boeing and Airbus incorporate that in new aircraft deliveries, and we have one competitor that produces a kit that also puts foam in fuel tanks to comply with the various regulatory requirements. That's a company we've been in litigation with now forever, and litigation has not gone well for that company. But regardless, we've spent money defending it. And I don't think that company produces or sells as many kits as we do, but we do have competition.

因此，AerSafe 的選項來自 OEM，這是一種氮氣系統，可去除油箱中的氧氣。波音和空中巴士公司將其納入新飛機交付中，我們的一個競爭對手生產了一種套件，該套件還可以在油箱中放入泡沫，以符合各種監管要求。我們一直在與那家公司打官司，但該公司的訴訟進展並不順利。但無論如何，我們還是花了錢來捍衛它。我認為該公司生產或銷售的套件不如我們那麼多，但我們確實有競爭。

This concludes our question-and-answer session. I would like to turn the conference back over to Nick Finazzo for closing remarks.

我們的問答環節到此結束。我想將會議轉回給尼克·菲納佐 (Nick Finazzo) 致閉幕詞。

Everyone, I hope this discussion today has given you a better understanding of what we've been doing to position the company for substantial growth. The things we do are not easy. They take time and money, and as we've suffered through this period of building, our investments will reap financial benefits in both the near and long-term. Our experienced management team is committed to the long-term growth and success of the company and will continue to work hard and smart to create value for our shareholders.

大家，我希望今天的討論能讓您更了解我們為使公司大幅成長所做的努力。我們所做的事情並不容易。它們需要時間和金錢，由於我們經歷了這段建設時期，我們的投資將在短期和長期內獲得經濟利益。我們經驗豐富的管理團隊致力於公司的長期發展和成功，並將繼續努力工作，聰明地為股東創造價值。

Thank you for listening today, and thank you, Bert, Ken, and Pete, for your thoughtful questions. Good evening, everyone.

感謝您今天的聆聽，並感謝伯特、肯和皮特提出的深思熟慮的問題。大家晚上好。

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。您現在可以斷開連線。