AZZ Inc (AZZ) 2024 Q4 法說會逐字稿

Good day and welcome to the AZZ Inc. quarter-four and year-end earnings conference call and webcast.(Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 AZZ Inc. 第四季度和年終收益電話會議和網路廣播。請注意，該事件正在被記錄。

I would now like to turn the conference over to Sandy Martin, Three-part advisors. Please go ahead.

現在，我想將會議交給三部分顧問桑迪馬丁 (Sandy Martin)。請繼續。

Thank you, operator. Good morning, and thank you for joining us today to review AZZ financial results for the fiscal 2024 fourth quarter and full year which ended February 29, 2024.

謝謝您，接線生。早安，感謝您今天加入我們，回顧 AZZ 2024 財年第四季和截至 2024 年 2 月 29 日的全年財務表現。

For joining the call today are Tom Ferguson, President and Chief Financial Executive Officer; Philip Sherringham, Chief Financial Officer; and Dave Clark, Senior Vice President of Marketing, Communication and Investor Relations.

今天參加電話會議的有總裁兼財務長湯姆‧弗格森 (Tom Ferguson)；菲利普‧謝林漢姆 (Philip Sherringham)，財務長；以及行銷、溝通和投資者關係高級副總裁戴夫·克拉克（Dave Clark）。

After today's prepared remarks, we will open the call for questions. Please note the live webcast for today's call, which can be found at www.azz.com/investor- events.

在今天的準備好的發言結束後，我們將開始提問。請注意今天電話會議的現場網路直播，可在 www.azz.com/investor-events 上找到。

Before we begin, I want to remind everyone that our discussion today will include forward-looking statements made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. By their nature, forward-looking statements are uncertain and outside of the company's control. Except for actual results or comments containing forward-looking statements may involve risks and uncertainties, some of which are detailed from time to time in documents filed by AZZ with the Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year.

在我們開始之前，我想提醒大家，我們今天的討論將包括根據 1995 年《私人證券訴訟改革法》的安全港條款做出的前瞻性陳述。就其性質而言，前瞻性陳述具有不確定性，且不受公司控制。除了實際結果或包含前瞻性陳述的評論之外，還可能涉及風險和不確定性，其中一些風險和不確定性在 AZZ 不時向美國證券交易委員會提交的文件中詳細說明，包括財政年度的 10-K 表格年度報告。

These statements are not guarantees of future performance. Therefore, undue reliance should not be placed upon them. Actual results could differ materially from these expectations. In addition, today's call will discuss non-GAAP financial measures. Non-GAAP financial measures should be considered supplement to not a substitute for GAAP measures. We refer you to the reconciliation from GAAP to non-GAAP measures in today's earnings press release.

這些聲明並不能保證未來的表現。因此，不應過度依賴它們。實際結果可能與這些預期有重大差異。此外，今天的電話會議將討論非公認會計準則財務指標。非公認會計準則財務指標應被視為公認會計準則指標的補充，而非替代。我們請您參閱今天的收益新聞稿中從 GAAP 指標到非 GAAP 指標的對帳。

I would now like to turn the call over to Tom Ferguson.

現在我想將電話轉給湯姆·弗格森。

Good morning, and thank you for joining us today. Fiscal 2024 was an exciting and successful year for AZZ, including several important operational and financial achievements. We are proud of our team's hard work and exceptional accomplishments for the fiscal year. Today, I will discuss the fourth quarter and full year highlights. Philip will then cover the detailed financial results, and Dave will cover industry updates.

早安，感謝您今天加入我們。2024 財年對 AZZ 來說是令人興奮且成功的一年，包括取得了多項重要的營運和財務成就。我們為團隊在本財年的辛勤工作和卓越成就感到自豪。今天，我將討論第四季和全年的亮點。隨後，Philip 將介紹詳細的財務結果，Dave 將介紹業界最新動態。

I will conclude by discussing our current outlook before opening the line for questions. Today AZZ as a pure-play metal coatings company, AZZ leads with North America's number one market position in each of our two business segments, which includes hot-dip galvanizing and coil coating solutions.

最後，在開始回答問題之前，我將討論我們當前的前景。如今，AZZ 作為一家純粹的金屬塗層公司，在熱浸鍍鋅和捲材塗層解決方案兩個業務領域均佔據北美第一的市場地位。

Our large-scale strategic footprint serves a broad, diversified customer base, including long-term blue-chip customers. And the company also brings over 65 years of trusted expertise. We provide sustainable unrivaled coating solutions supported by proprietary customer-centric technologies.

我們大規模的策略足跡服務於廣泛且多樣化的客戶群，包括長期藍籌客戶。該公司還擁有超過 65 年值得信賴的專業知識。我們提供以專有的以客戶為中心的技術支援的可持續的無與倫比的塗層解決方案。

Last year, our teams focused on critical operational and financial objectives, and I am pleased to report that both segments performed exceptionally well, particularly in the fourth quarter and the full year. Our fiscal year results that ended February 2024 reflect the combination of near and longer-term strategic initiatives that generated sales growth, margin enhancements and significant working capital improvements.

去年，我們的團隊專注於關鍵的營運和財務目標，我很高興地報告，兩個部門都表現非常出色，特別是在第四季度和全年。我們截至 2024 年 2 月的財政年度業績反映了近期和長期策略舉措的結合，這些舉措帶來了銷售額增長、利潤率提高和營運資本的大幅改善。

We're uniquely positioned to serve customers with an expanding competitive moat through extensive technical expertise and solutions based capabilities, a deep bench of talented leadership, proprietary technologies and strategically placed facilities across the US and Canada.

我們擁有獨特的優勢，透過廣泛的技術專長和基於解決方案的能力、優秀的領導團隊、專有技術以及遍布美國和加拿大的策略性設施，為客戶提供不斷擴大的競爭優勢。

In fiscal 2024, we significantly reduced the company's debt and took action to strengthen AZ's balance sheet. Our relentless commitment to operational excellence continues to be the focus of our talented teams and our strong collaborative culture supports our future growth and success.

2024財年，我們大幅減少了公司債務，並採取行動加強了AZ的資產負債表。我們對卓越營運的不懈承諾繼續成為我們優秀團隊的焦點，我們強大的協作文化支持我們未來的成長和成功。

Turning to our results for the fiscal year, we increased total sales by 16.2% to a record $1.54 million. Metal Coatings full year sales were $656 million, up 3% versus the prior year. And Precoat Metals sales were $881 million, up 28.4% compared to the prior year. Precoat's fiscal 2024 included 52 weeks of sales versus 42 weeks for the prior year.

回顧本財年的業績，我們的總銷售額成長了 16.2%，達到創紀錄的 154 萬美元。金屬塗料全年銷售額為 6.56 億美元，較上年增長 3%。Precoat Metals 的銷售額為 8.81 億美元，比上年增長 28.4%。Precoat 的 2024 財年銷售週期為 52 週，而前一年為 42 週。

Our full year adjusted EBITDA increased to $334 million, and we generated cash provided by operations of $245 million for the year. We will discuss the uses of cash in a few moments.

我們全年調整後的 EBITDA 增加至 3.34 億美元，全年營運活動產生的現金為 2.45 億美元。我們稍後將討論現金的用途。

Finally, adjusted earnings per share grew to $4.53, up almost 35% compared to the previous year's EPS for the fiscal 2024 fourth quarter, which is usually our weakest due to slower construction activity during the winter months, total sales of $366 million increased by 8.9%. With Metal Coatings up 3.3% and Precoat Metals up 13.4% entirely from organic expansion.

最後，調整後的每股盈餘成長至 4.53 美元，與去年同期的 2024 財年第四季每股收益相比成長近 35%，由於冬季建築活動放緩，第四季通常是我們最弱的季度，總銷售額為 3.66 億美元，成長了 8.9%。其中金屬塗層上漲 3.3%，預塗金屬上漲 13.4%，全部源自有機擴張。

Also for the quarter, we increased adjusted earnings per share by 210% to $0.93 and grew adjusted EBITDA by 29% to $74 million. This led to strong cash flow from operations for the quarter of $64 million. As a result, adjusted EBITDA margins were 28.6% for Metal Coatings and 17.8% for Precoat metals within our targeted range for each segment.

本季度，我們將調整後每股收益提高了 210%，達到 0.93 美元，並將調整後 EBITDA 提高了 29%，達到 7,400 萬美元。這使得本季的營運現金流強勁，達到 6,400 萬美元。因此，金屬塗層的調整後 EBITDA 利潤率為 28.6%，預塗金屬的調整後 EBITDA 利潤率為 17.8%，均在我們針對每個部門的目標範圍內。

In short, our continued dedication to delivering best-in-class customer service and quality led to increased sales, improved profitability and significant cash flow for the fourth quarter and full year. We also continue to invest in our operational technology platforms in fiscal 2024 as we seek to more deeply integrate our business with our customers.

簡而言之，我們持續致力於提供一流的客戶服務和質量，從而帶來了第四季度和全年銷售額的成長、獲利能力的提高和顯著的現金流。我們也將在 2024 財年繼續對我們的營運技術平台進行投資，以尋求將我們的業務與客戶更深入地整合。

Our Metal Coatings segment has a platform called Digital Galvanizing system or DGS. So we benefit from our improved productivity and efficiencies and customers are provided faster and more effective communication and better visibility into their projects from beginning to end.

我們的金屬塗層部門有一個稱為數位鍍鋅系統或DGS的平台。因此，我們從提高的生產力和效率中受益，並為客戶提供更快、更有效的溝通以及從始至終對其專案的更好的可視性。

For Precoat metals customers utilize coil zone. Our proprietary platform, which provides 24/7 access 365 days a year to real-time inventory scheduling and other vital information customer utilized to help run their business on a daily basis across Precoat network of 13 facilities. These innovative platforms and passion for excellent service among our teams position AZZ is a highly differentiated Metal Coatings provider to customers throughout North America.

預塗金屬，客戶利用線圈區。我們的專有平台提供全年 365 天、每天 24 小時的即時庫存調度和其他重要信息，客戶可以利用這些信息幫助其在 Precoat 13 個設施網絡上開展日常業務。這些創新平台和我們團隊對優質服務的熱情使 AZZ 成為北美客戶高度差異化的金屬塗層供應商。

Our strategic transformation over the past two years has been a catalyst for generating a significantly higher run rate, EBITDA and cash flow. As Philip will discuss more in a moment. We continue to strengthen AZZ balance sheet and allocate capital prudently last year.

我們過去兩年的策略轉型已成為實現大幅提高運作率、EBITDA 和現金流的催化劑。正如菲利普稍後將進一步討論的那樣。去年我們繼續加強 AZZ 的資產負債表並審慎分配資本。

We reduced our debt by $115 million over the last year and repriced our term loan or revolver to lower interest costs. We also deployed significant funds to the greenfield aluminum coil coating facility in Washington, Missouri, as part of our organic growth plans. This critical project remains on schedule.

去年，我們減少了 1.15 億美元的債務，並重新定價了定期貸款或循環信貸，以降低利息成本。作為有機成長計畫的一部分，我們也向密蘇裡州華盛頓的綠地鋁捲塗層工廠投入了大量資金。這項重要項目仍在按計劃進行。

We are highly focused on creating long-term value for our sustainable solutions. We believe that by continually investing in our people and relentlessly executing our strategy, we will accelerate AZZ's value creation. We plan to continue scaling our business through organic inorganic growth and leveraging our highly differentiated value proposition to customers as we create long-term value for our shareholders.

我們高度專注於為我們的永續解決方案創造長期價值。我們相信，透過不斷投資我們的人才和堅持不懈地執行我們的策略，我們將加速 AZZ 的價值創造。我們計劃透過有機無機成長繼續擴大業務規模，並向客戶利用我們高度差異化的價值主張，同時為股東創造長期價值。

With that, I'll turn it over to Philip.

說完這些，我會把話題交給菲利普。

Thanks, Tom, and good morning, everybody. As Tom mentioned, we reported fiscal year 2024 fourth quarter sales of $367 million compared to $337 million in last year's fourth quarter. Total sales increased 8.9% over the fourth quarter of last year with Metal Coatings sales up 3.3% and Precoat Metals up 13.4%.

謝謝，湯姆，大家早安。正如湯姆所提到的，我們報告的 2024 財年第四季銷售額為 3.67 億美元，而去年第四季的銷售額為 3.37 億美元。總銷售額比去年第四季成長了 8.9%，其中金屬塗料銷售額成長了 3.3%，預塗金屬銷售額成長了 13.4%。

Fourth quarter gross profit was $81 million or 22.1% of sales compared to $61.3 million or 18.2% of sales in the prior year fourth quarter. Gross margins improved by 390 basis points as a result of lower zinc costs in the Metal Coatings segment and lower overhead costs in the Precoat Metals segment as performance improved over a year ago period.

第四季毛利為 8,100 萬美元，佔銷售額的 22.1%，而去年同期毛利為 6,130 萬美元，佔銷售額的 18.2%。由於金屬塗層部門的鋅成本降低以及預塗金屬部門的間接成本降低（業績較上年同期有所改善），毛利率提高了 390 個基點。

Also, gross profit benefited from reclassifying intangible asset amortization to our corporate center, partially offset by increased labor and other variable costs. Selling, general and administrative expenses were $38.8 million in the fourth quarter compared to $25.1 million in the prior year fourth quarter. The fourth quarter included $6.8 million in legal accruals related to the resolution of long outstanding commercial disputes.

此外，毛利受益於將無形資產攤銷重新歸類至我們的企業中心，但卻被增加的勞動力和其他變動成本部分抵銷。第四季銷售、一般及行政開支為 3,880 萬美元，去年同期為 2,510 萬美元。第四季包括與解決長期懸而未決的商業糾紛相關的 680 萬美元法律應計費用。

Excluding the fourth quarter legal accruals, SG&A expenses for the fiscal fourth quarter would have been $32 million or 8.7% of sales compared to 7.4% in the prior year fourth quarter.

除去第四季度的法律應計費用，第四財季的銷售、一般及行政費用將為 3,200 萬美元，佔銷售額的 8.7%，而去年同期該數字為 7.4%。

Operating income was $42.3 million or 11.5% of sales, an improvement of 16.8% and-- 70 basis points from last year's fourth quarter of $36.2 million or 10.8% of sales.

營業收入為 4,230 萬美元，佔銷售額的 11.5%，較去年第四季的 3,620 萬美元（佔銷售額的 10.8%）成長 16.8% 和 70 個基點。

Interest expense for the fourth quarter was $24.7 million compared to $27.1 million in the prior year. Due to lower outstanding debt and repricing the company's term loan B and revolving credit facility late in the year. I will discuss our capital allocations efforts in a moment. E

第四季利息支出為 2,470 萬美元，去年同期為 2,710 萬美元。由於未償還債務較少，且公司在年底重新定價定期貸款 B 和循環信貸額度。稍後我將討論我們的資本配置工作。埃

quity and earnings of unconsolidated subsidiaries for the fourth quarter increased to $4.3 million compared to $1.6 million for the same quarter last year. The increase is due to higher minority interest earnings from our 40% ownership in the AVAIL JV as they continue to perform to expectations.

第四季非合併子公司的淨利潤和收益增至 430 萬美元，而去年同期為 160 萬美元。成長的原因是，我們持有 AVAIL JV 的 40% 股權，其少數股東權益收益增加，其表現繼續符合預期。

Current quarter income tax was $4.1 million, reflecting an effective tax rate of 18.7% in the quarter compared to 34.8% in the prior year fourth quarter, where the rates were much higher due to the impact of the transformative M&A activities during the prior year.

本季所得稅為 410 萬美元，本季有效稅率為 18.7%，而去年第四季的有效稅率為 34.8%，由於去年轉型性併購活動的影響，稅率要高得多。

Reported net income for the fourth quarter was $17.9 million compared to $7.4 million for the fourth quarter of prior year. Adjusted net income for the fourth quarter was $27.5 million compared to $7.6 million in the prior year, up more than 2.5 times over the prior year.

第四季淨收入為 1,790 萬美元，去年同期為 740 萬美元。第四季調整後淨收入為 2,750 萬美元，去年同期為 760 萬美元，較上年增長 2.5 倍以上。

Our adjusted diluted earnings per share of $0.93, as Tom spoke about, compared to $0.30 in the prior year fourth quarter. Since the preferred convertible shares are dilutive in the current quarter to adjusted EPS. The preferred dividends are added back to earnings for the company's adjusted EPS computation. Under a full conversion assumption the preferred convertible shares weighted average shares outstanding in the quarter, our approximately 29.5 million shares.

正如湯姆所說，我們的調整後每股攤薄收益為 0.93 美元，而去年同期第四季為 0.30 美元。由於優先可轉換股票在本季對調整後的每股盈餘具有稀釋作用。優先股息將加回收益中，以計算公司的調整後每股收益。在完全轉換假設下，本季優先可轉換股份的加權平均流通股數約為 2,950 萬股。

Fourth quarter adjusted EBITDA was $73.9 million or 20.2% of sales compared to $57.2 million or 17% of sales in the last year. The 320 basis point improvement in adjusted EBITDA margin was primarily driven by improved operational efficiencies in our Precoat Metals segment and continued strong earnings by our Metal Coatings segment.

第四季調整後 EBITDA 為 7,390 萬美元，佔銷售額的 20.2%，而去年同期為 5,720 萬美元，佔銷售額的 17%。調整後 EBITDA 利潤率提高 320 個基點，主要得益於預塗金屬部門營運效率的提高以及金屬塗料部門持續強勁的盈利。

For the full fiscal year ending in February, our sales were just over $1.5 billion, up 16.2% over last year. The Precoat results include 52 weeks of sales in the full fiscal year compared to only 42 weeks in the prior. Gross profit increased to $363 million or 23.6% of sales from a year ago.

截至二月的整個財年，我們的銷售額略高於 15 億美元，比去年增長 16.2%。Precoat 的業績涵蓋整個財年的 52 週銷售情況，而上年僅為 42 週。毛利較去年同期增加至 3.63 億美元，佔銷售額的 23.6%。

Improving 120 basis points over the year ago gross margin on the same operational efficiencies I just spoke about during the fourth quarter, SG&A costs were $141.9 million, 9.2% of sales on par with the SG&A as a percentage of sales from last year.

在維持我剛才提到的相同營運效率的基礎上，第四季度的毛利率比去年同期提高了 120 個基點，銷售、一般及行政費用為 1.419 億美元，佔銷售額的 9.2%，與去年同期的銷售、一般及行政費用佔銷售額的百分比相當。

Operating income was $221.6 million or 14.4% of sales or 130 basis points improved when compared to operating income of 13.1% of sales in the prior year.

營業收入為 2.216 億美元，佔銷售額的 14.4%，與去年同期的 13.1% 相比提高了 130 個基點。

Reported net income from continuing operations was $101.6 million for the year compared to $66.3 million last year. Adjusted net income was $132.8 million for the year or $4.53 per share compared to $95.2 million or $3.36 per share last fiscal year, a solid 35% EPS improvement year over year.

報告顯示，本年度持續經營淨收入為 1.016 億美元，去年同期為 6,630 萬美元。調整後淨收入為 1.328 億美元，即每股 4.53 美元，而上財年為 9,520 萬美元，即每股 3.36 美元，每股收益同比大幅增長 35%。

Adjusted EBITDA for the year was $333.6 million or 21.7% of sales compared $267.4 million or 20.2% of sales in the prior fiscal year, which represents an increase in EBITDA dollar of 28.4% compared to the prior fiscal year.

本年度調整後 EBITDA 為 3.336 億美元，佔銷售額的 21.7%，而上一財年調整後 EBITDA 為 2.674 億美元，佔銷售額的 20.2%，與上一財年相比，EBITDA 成長了 28.4%。

But turning to our financial position and balance sheet now, we generated strong cash flow from operations of $244.5 million and free cash flow of $149.3 million. As we executed on several working capital initiatives during the year, our free cash flow is computed as cash flows from operating activities less capital expenditures.

但現在回顧我們的財務狀況和資產負債表，我們從經營活動中產生了 2.445 億美元的強勁現金流和 1.493 億美元的自由現金流。由於我們年內執行了多項營運資本計劃，我們的自由現金流計算為經營活動現金流減去資本支出。

Capital expenditures for the year were $95.1 million, including typical safety, maintenance and gross spending as well as approximately $47.7 million related to the new greenfield aluminum coating plant under construction in Washington, Missouri.

本年度資本支出為 9,510 萬美元，包括典型的安全、維護和總支出以及與位於密蘇裡州華盛頓的新建綠地鋁塗層廠相關的約 4,770 萬美元。

Tom will cover the project in a few moments in fiscal 2025, we expect capital expenditures to be approximately $100 million to $120 million included $50 million to $60 million related to the Washington facility. As we complete construction and ready the site for production.

湯姆將在 2025 財年稍後介紹該項目，我們預計資本支出約為 1 億至 1.2 億美元，其中包括與華盛頓工廠相關的 5,000 萬至 6,000 萬美元。當我們完成施工並準備好生產現場時。

We reduced debt during the year by $115 million, exceeding the $75 million to $100 million target we provided as part of our annual guidance. Additionally, with our focus on working capital and strong overall debt reduction, we exceeded our originally stated leverage goal back in May 22 by reaching -- net leverage ratio of 2.9 times with a target of getting under 3 times.

我們今年減少了 1.15 億美元的債務，超過了我們年度指導中設定的 7500 萬至 1 億美元的目標。此外，由於我們注重營運資本和強勁的整體債務削減，我們在 5 月 22 日超出了最初設定的槓桿率目標，達到了 2.9 倍的淨槓桿率，目標是控制在 3 倍以下。

In addition, during the last year, we successfully repriced our Term Loan B twice and repriced our $400 million revolving credit facility repricing the Term Loan B in August 23 and again in March 24, each time reducing our margin by 50 basis points for a total 1-percentage-point reduction.

此外，去年，我們成功地對定期貸款 B 進行了兩次重新定價，並對我們的 4 億美元循環信貸額度進行了重新定價，分別於 8 月 23 日和 3 月 24 日對定期貸款 B 進行了重新定價，每次都將我們的利潤率降低 50 個基點，總共降低了 1 個百分點。

Additionally, we repriced our revolving credit facility in December 2023, which moved us from a fixed sulfur rate of sulfur plus 425 margin to a tiered pricing grid. At February 24, with our year end leverage ratio being below 3 times, we expect our go forward revolving credit rate to be marginal of sulfur plus 275 or another 25 basis point reduction in margin.

此外，我們在 2023 年 12 月重新定價了我們的循環信貸額度，使我們的硫磺價格從固定硫磺率加上 425 利潤率轉變為分級定價網格。截至 2 月 24 日，我們的年末槓桿率低於 3 倍，我們預期我們的未來循環信貸利率為硫磺邊際利率加 275，或保證金再減少 25 個基點。

In addition, we are pleased to share that S&P Global upgraded our senior secured debt rating from BB-minus to BB from B, a two notch increase and Fitch Ratings initiated coverage on the company with a very similar rating. Acknowledging the progress we have made since the acquisition of Precoat Metals in May of 2022.

此外，我們很高興地宣布，標普全球將我們的優先擔保債務評級從 B 級上調至 BB 級，從 BB- 上調了兩個級距，而惠譽評級也以非常相似的評級開始對該公司進行評級。承認我們自 2022 年 5 月收購 Precoat Metals 以來的進展。

Our capital structure provides a strong foundation as we move forward, and our liquidity position remains strong with no debt maturities until 2027. We continue to be under a swap agreement that fixes more than half the variable rate debt. Finally, we paid cash dividends on common and preferred stock totaling $31.4 million for the year. We made no share repurchases during the year since we focused on debt reduction.

我們的資本結構為我們未來發展提供了堅實的基礎，我們的流動性狀況依然強勁，直到 2027 年都沒有債務到期。我們繼續遵守一項掉期協議，該協議固定了一半以上的浮動利率債務。最後，我們全年支付的普通股和優先股現金股利總計 3,140 萬美元。由於我們專注於減少債務，因此今年我們沒有回購股票。

With that, I'd like to turn the call over to David Norris.

說到這裡，我想把電話轉給大衛諾里斯。

Thank you, Philp. Good morning, everyone. Tom began today's discussion by describing AZZ's number one market position in two highly differentiated value added metal coating segments that provide scale, expertise and customer-centric technology uniquely positioned to serve the North American steel and aluminum markets.

謝謝你，菲利普。大家早安。湯姆在今天的討論中首先介紹了 AZZ 在兩個高度差異化的增值金屬塗層領域的第一市場地位，這些領域提供規模、專業知識和以客戶為中心的技術，為北美鋼鐵和鋁市場提供服務。

Our services provide sustainable, environmentally friendly solutions that extend the life of our customers' products through our specialized coating materials process. Our business is well positioned to benefit from secular growth drivers related to infrastructure and renewables investments, reshoring, the US and North American manufacturing, as well as important conversions from plastic to aluminum.

我們的服務提供可持續的、環保的解決方案，透過我們專業的塗層材料製程延長客戶產品的使用壽命。我們的業務處於有利地位，可以從與基礎設施和可再生能源投資、回流、美國和北美製造業以及從塑膠到鋁的重要轉換相關的長期成長動力中受益。

Looking back at our fiscal fourth quarter, which included in February, both segments benefited from unseasonably warmer weather that favorably impacted the construction industry. Regarding our end markets, Metal Coatings was supported by robust transmission and distribution activity and a continued ramp of interstate bridge and highway projects in the quarter.

回顧我們包括二月在內的第四財季，兩個部門都受益於異常溫暖的天氣，這對建築業產生了有利影響。就我們的終端市場而言，金屬塗料受到本季度強勁的輸配電活動以及州際橋樑和高速公路項目的持續增加的支持。

We continue to see beneficial tailwinds associated with critical infrastructure projects closely tied to the AIIJA and CHIPS, which positively impact our results. We are seeing signs of a ramp up in the cadence of federal funding as evidenced by the uptick in award announcements by the Department of Energy, Commierce and Transportation.

我們繼續看到與 AIIJA 和 CHIPS 密切相關的關鍵基礎設施項目帶來的有利順風，這對我們的業績產生了積極影響。我們看到聯邦政府資金投入節奏加快的跡象，能源、商業和運輸部授予的獎項數量增加就是明證。

We believe in-store infrastructure monies are flowing in 2024, and that DOT budgets are available in all 50 states. Going forward, we expect an elevated number of projects related to T&D bridge and highway, data centers and CHIPS plant work in our future quarters. Within T&D we are encouraged by the US Department of Energy's October announcement of up to $3.5 billion in grid resilience and innovation partnership program investments for 58 projects across 44 states to strengthen electric grid resilience and reliability across America.

我們相信，到 2024 年，店內基礎建設資金將會流入，並且全美 50 個州都有交通部預算。展望未來，我們預計未來幾季與輸配電橋樑和高速公路、資料中心和 CHIPS 工廠工作相關的項目數量將會增加。在輸配電領域，我們受到美國能源部 10 月宣布的高達 35 億美元的電網彈性和創新夥伴關係計劃投資的鼓舞，該計劃將用於 44 個州的 58 個項目，以增強全美電網的彈性和可靠性。

16 of these projects specifically relate to grid resilience, which is where hot-dip galvanized steel is commonly used. Within bridge and highway we are encouraged by the announcement this January of more than $4.9 billion in funding by the Department of Transportation for 37 different infrastructure projects.

其中 16 個項目具體涉及電網彈性，熱浸鍍鋅鋼是該領域最常用的材料。在橋樑和公路領域，我們很高興看到交通部今年 1 月宣佈為 37 個不同的基礎設施項目提供超過 49 億美元的資金。

In the manufacturing sector, the Administration announced up to $8.5 billion in direct funding and $11 billion in loans to Intel for the construction of computer chip plants in Arizona, Ohio, New Mexico and Oregon. And as recently as last week, the Administration announced up to $6.4 billion in direct funding for Samsung Electronics to develop computer chip manufacturing and a research cluster here in Texas.

在製造業領域，政府宣布向英特爾提供高達 85 億美元的直接資金和 110 億美元的貸款，用於在亞利桑那州、俄亥俄州、新墨西哥州和俄勒岡州建造電腦晶片工廠。就在上週，美國政府宣布向三星電子提供高達 64 億美元的直接資金，用於其在德克薩斯州開發電腦晶片製造和研究集群。

Samsung's Texas manufacturing cluster will include two factories as well as an R&D facility and packaging facility. The first facility is expected to be operational in 2026, with the second being operational in 2027. Both Intel and Samsung are projects that we either have or are currently actively providing hot-dip galvanizing or coil coating solutions.

三星在德州的製造集群將包括兩家工廠、一個研發設施和封裝設施。第一期設施預計將於 2026 年投入運營，第二期設施預計將於 2027 年投入運營。英特爾和三星都是我們曾經或目前正在積極提供熱浸鍍鋅或捲材塗層解決方案的項目。

Lastly, we continue to see a slight rebound from solar and renewables end markets with pockets of regional strength across the United States, where nearly $17 billion in planned investments have been announced so far.

最後，我們繼續看到太陽能和再生能源終端市場略有反彈，美國各地都有一些地區表現強勁，迄今已宣布近 170 億美元的計畫投資。

The Precoat metal segment continued to perform better than the market in the fourth quarter with growing volumes based on conversion selling and value pricing. Volume gains, a slight market rebound and favorable mix helped our fourth quarter performance, especially in the construction and appliances categories.

第四季度，預塗金屬部門的表現持續優於市場，由於轉換銷售和價值定價，銷售量不斷成長。銷售成長、市場小幅反彈和良好的產品組合推動了我們第四季的業績，尤其是在建築和家電領域。

Precoat continued to win captive paint lines and coil coating projects from companies that decided to outsource the services. Although smaller volumes, the container and transportation categories continued to be under some pressure in the quarter, offset by the construction spending increases,

Precoat 繼續從那些決定外包服務的公司手中贏得專屬塗裝生產線和捲材塗裝專案。儘管貨運量較小，但貨櫃和運輸類別在本季度繼續承受一定壓力，但建築支出的增加抵消了這種壓力。

Projections for calendar 2024 construction spending call for significant year-over-year improvements, which include public construction projects, private nonresidential spending and higher manufacturing construction compared to the last year.

2024 年建築支出預測顯示，與去年相比，公共建築項目、私人非住宅支出和製造業建築將有顯著改善。

Nonresidential construction continues to perform well with building strength in manufacturing and agriculture. As you saw from our raised guidance, we remain optimistic about the long-term expectations for manufacturing reshoring and the transition to pre painted steel and aluminum.

非住宅建築持續表現良好，製造業和農業實力增強。正如您從我們上調的指引中看到的，我們對製造業回流以及向預塗鋼和鋁的過渡的長期預期仍然持樂觀態度。

We also see a steady movement from plastics to aluminum, the container category throughout North America. Our Metal Coatings and precut metals teams continue to make solid progress with incremental market share gains with new customers in both our hot-dip galvanizing and coil coating business.

我們也看到整個北美的容器類型正穩定地從塑膠轉向鋁製。我們的金屬塗層和預切金屬團隊繼續取得穩步進展，在熱浸鍍鋅和捲材塗層業務中隨著新客戶的增加而不斷增加市場份額。

With that, I'd like to turn it back over to Tom.

說完這些，我想把話題轉回給湯姆。

Thanks, Dave. Fiscal 2024 was a pivotal year for the company. Our AZZ teams continued to drive the strategy forward by focusing on serving customers well, Improving our operations and prudently deploying cash on high-return projects throughout fiscal 2024.

謝謝，戴夫。2024 財年對公司來說是關鍵的一年。我們的 AZZ 團隊繼續推動該策略向前發展，專注於為客戶提供良好的服務、改善我們的營運並在整個 2024 財年審慎地將現金部署在高回報項目上。

I'm proud of our leaders who demonstrated both private passion as they drove organic growth and improved operational efficiencies to further enhance margins. While we collectively strengthen the company's financial position.

我為我們的領導者感到自豪，他們在推動有機成長和提高營運效率以進一步提高利潤率的同時，也展現了私人熱情。同時我們共同加強公司的財務狀況。

The company generated significant cash from operations and paid down debt ahead of expectations. We ended the year with our net debt to trailing EBITDA of 2.92 times, which is a testament to our cash management discipline last year. As well as our ability to grow adjusted EBITDA by 25% to $334 million. We continue to build trust with our customers as we partner with them to provide superior quality and service levels.

該公司從營運中產生了大量現金，並提前償還了債務。截至去年底，我們的淨債務與 EBITDA 比率為 2.92 倍，證明了我們去年的現金管理紀律。我們也能將調整後的 EBITDA 提高 25% 至 3.34 億美元。我們與客戶合作並提供卓越的品質和服務水平，從而不斷與客戶建立信任。

Our business segments providing important, sustainable metal coating solutions that enhance the longevity and appearance of building products and infrastructure essential to everyday life. We enjoy the fact that our solutions and services are synonymous with sustainability.

我們的業務部門提供重要的、可持續的金屬塗層解決方案，以提高日常生活必不可少的建築產品和基礎設施的使用壽命和外觀。我們很高興我們的解決方案和服務與永續性是同義的。

As Dave mentioned, our business outlook is positive, particularly as we enter the spring and summer months when construction activity is at its strongest. Our teams are positioned to find new ways to grow market share and benefit from the expected ramp up of infrastructure spending.

正如戴夫所提到的，我們的業務前景是積極的，特別是當我們進入建築活動最活躍的春季和夏季時。我們的團隊致力於尋找新方法來擴大市場份額並從預期的基礎設施支出增加中獲益。

Given AZZ strong market positions in both segments, our broad scale and our strategic footprint, we believe we are well positioned for, however, the economy shapes up this year. Labor and employee turnover continues to improve from a year ago.

鑑於 AZZ 在兩個領域強大的市場地位、廣泛的規模和戰略足跡，我們相信，無論今年的經濟狀況如何，我們都已做好準備。勞動力和員工流動率較一年前相比持續改善。

Since we are tolling business, we will remain nimble and adjust inventories of paint and zinc, if demand shifts, whether due to our growth initiatives or other macroeconomic impacts. Our greenfield aluminum coil coating facility in Missouri is progressing well and tracking on schedule.

由於我們從事代加工業務，因此如果需求發生變化（無論是由於我們的成長計劃還是其他宏觀經濟影響），我們將保持靈活並調整油漆和鋅的庫存。我們位於密蘇裡州的新建鋁捲塗層工廠進展順利，進度符合計畫。

Work has shifted to the inside of the building with the electrical installation underway and the installation of the coating line in process. Our focus is now turning to our staffing commissioning and qualification efforts. It's exciting to think that our hot testing of the coating line will begin in the third quarter just a few months from now.

工作已轉移到建築物內部，電氣安裝正在進行中，塗裝生產線的安裝也正在進行中。我們現在的重點是人員配備調試和資格認證工作。令人興奮的是，幾個月後我們的塗層生產線熱測試將在第三季開始。

We raised our guidance a couple of weeks ago, and I reiterate reiterating it today. Our fiscal 2025 guidance is for sales in the $1.525 billion to $1.625 billion range, adjusted EBITDA in the $310 million to $360 million range and adjusted EPS guidance of $4.50 to $5. Capital expenditures for the current fiscal year are expected to remain unchanged at $100 million to $120 million, including $50 million to $60 million related to the new Washington, Missouri plan.

我們幾週前就提高了預期，今天我再次重申這一點。我們對 2025 財年的預期是：銷售額在 15.25 億美元至 16.25 億美元之間，調整後 EBITDA 在 3.1 億美元至 3.6 億美元之間，調整後 EPS 預期為 4.50 美元至 5 美元。本財年的資本支出預計將保持不變，為 1 億至 1.2 億美元，其中包括與新華盛頓密蘇裡計畫相關的 5,000 萬至 6,000 萬美元。

The equity and earnings from our minority interest in the AVAIL joint venture is expected to be $15 million to $18 million this year, and debt reduction is planned in the $60 million to $90 million range. While we will remain focused on paying down debt, we are seeing some small galvanizing acquisition opportunities beginning to enter the pipeline.

預計今年我們在 AVAIL 合資企業中的少數股權和收益將達到 1,500 萬至 1,800 萬美元，而債務削減計劃在 6,000 萬至 9,000 萬美元之間。雖然我們仍將專注於償還債務，但我們看到一些小型的收購機會開始出現。

Our dedicated teams are operating confidently as we began the new fiscal year, and I want to thank them for their hard work and accomplishments this past year. We are energized as we find ourselves already halfway through our first quarter and believe we are well positioned to deliver strong results, generate significant cash flow and maximize shareholder value in fiscal 2025.

在新的財政年度開始時，我們敬業的團隊正在充滿信心地開展工作，我要感謝他們在過去的一年裡的辛勤工作和取得的成就。我們充滿活力，因為我們已經度過了第一季的一半，並相信我們有能力在 2025 財年取得強勁的業績，產生可觀的現金流並實現股東價值最大化。

Now Would the operator please open up the call for questions.

現在請接線生打開電話，回答問題。

(Operator Instructions)

（操作員指令）

Lucas Pipes, B. Riley Securities.

盧卡斯派普斯 (Lucas Pipes)、B.萊利證券 (B. Riley Securities)。

Thank you very much, operator. Good morning, everyone. My first question is on the balance sheet. Good, good job are getting the leverage ratio at 2.9 times. I wondered with this, you plan to maybe hold a little bit more cash on the balance sheet and do you think about acquisitions? And if so, where do you see more opportunities on the pre COVID side? Or on the Metal Coatings side? Thank you very much.

非常感謝，接線生。大家早安。我的第一個問題是關於資產負債表的。很好，幹得好，槓桿率達到 2.9 倍。我想知道，您是否計劃在資產負債表上保留多一點的現金，並且您是否考慮過收購？如果是的話，您認為在疫情之前有哪些更多的機會？還是在金屬塗層方面？非常感謝。

I can start, Tom with the balance sheet question. Typically, what we've done is we operate pretty low cash balances and then use excess cash to reduce the borrowings on the revolver. We have $400 million revolver with about $355 million in capacity at the end of the year. So the acquisitions, Tom, was speaking to we should be able to fund smaller bolt-on through the revolving credit facility. Tom?

湯姆，我可以從資產負債表問題開始。通常我們的做法是，維持相當低的現金餘額，然後使用多餘的現金來減少循環信貸的借款。我們擁有 4 億美元的循環信貸，年底的容量約為 3.55 億美元。因此，湯姆說，我們應該能夠透過循環信貸安排為較小的附加項目提供資金。湯姆？

Yes, Lucas, I think right now what we're seeing is there's a couple of potential galvanizing opportunities that have popped up that the kind of bolt on one-off sites that our team likes to look at. No idea how active those will be, but we would fund those off of the revolver. But naturally, we'd expect to have good EBITDA above above our multiple.

是的，盧卡斯，我認為現在我們看到的是出現了一些潛在的激勵機會，這些機會是我們團隊喜歡關注的那種一次性網站。不知道這些會有多活躍，但我們會用左輪手槍來資助它們。但自然地，我們期望 EBITDA 能夠高於我們的倍數。

Got it. And then you mentioned bolt on up to what level would you consider EBITDA or volume? Would you consider bolt-on? And I'm just trying to get a sense for kind of what is the magnitude?

知道了。然後您提到，您會將 EBITDA 或銷售量提高到什麼水平？您會考慮用螺栓固定嗎？我只是想了解它的規模是怎麼樣的？

These are typically in the $10 million to $20 million revenue side. So usually they're going to have say $3 million or $4 million. Well, yes, probably $3 million or $4 million of EBITDA. We tend to pay roughly six times. So that's what we consider bolt-on. And then our team, we anticipate good strong first year synergies often in the 500,000 basis point improvement range.

這些收入一般在 1000 萬到 2000 萬美元之間。所以通常他們會有300萬美元或400萬美元。嗯，是的，EBITDA 可能是 300 萬美元或 400 萬美元。我們通常會支付大約六次。這就是我們所考慮的螺栓連接。然後我們的團隊預計第一年的協同效應將會在 50 萬個基點的改善範圍內。

Very helpful. And for this fiscal year here, how many of those do you think are realistic to tuck-in?

非常有幫助。就本財政年度而言，您認為其中有多少是可以現實地實現的？

There had not been any last year. Of course, we've taken the flag down that we were out there in acquisition mode. So I think we've kind of let folks know that as we've gotten our debt under three times quicker than we'd anticipated that, while we're still going to be focused on paying down debt funding the facility in Washington and our normal CapEx needs. So we just recently kind of let it out that we're interested again. And these usually have a four to six month cycle times from when they become active to when we're able to do due diligence and close. So may maybe one or two, I'd be about it.

去年還沒有發生過這樣的事。當然，我們已經撤下了處於收購模式的標誌。因此，我認為我們已經讓人們知道，我們已經以比預期快三倍的速度償還了債務，同時我們仍將專注於償還債務，為華盛頓的設施提供資金並滿足我們的正常資本支出需求。所以我們最近才再次表達出我們的興趣。從它們開始活躍到我們能夠進行盡職調查和結束，這些通常有四到六個月的周期時間。所以可能有一兩個，我會談到它。

That's very helpful. And maybe just to round out the conversation on growth. Do you think about kind of organic growth, we're with that factor in vis-a-vis some of these bolt-ons you mentioned. Thank you.

這非常有幫助。或許只是為了完善關於成長的討論。您是否考慮過有機成長，我們會考慮這一因素以及您提到的一些附加因素。謝謝。

Yes, I think we still, our normal organic growth, particularly on the Metal Coatings side, tends to run with GDP. So when we can get a couple of acquisitions and that's going to add another 5%or 6% on a full year run rate basis.

是的，我認為我們的正常有機成長，特別是金屬塗層方面的成長，往往與 GDP 同步成長。因此，當我們能夠進行幾項收購時，全年的運行率將會再增加 5% 或 6%。

On the prepaid side, we've got two things going on. One, we feel volumes are improving as we saw in the fourth quarter, I believe we were up about 9% on volume. So we're seeing the volumes pick up on the Precoat side, which gives us nice organic growth. And then as we get into next year, finish out this year, get into next calendar year, that's when we'll start to have the Washington site coming online. So which should provide some additional revenue and EBITDA growth.

在預付費方面，我們做了兩件事。首先，我們感覺銷量正在改善，正如我們在第四季度看到的那樣，我認為我們的銷量增長了約 9%。因此，我們看到預塗層業務的銷量有所回升，這為我們帶來了良好的有機成長。然後，當我們進入明年，結束今年，進入下一個日曆年時，我們將開始讓華盛頓網站上線。因此這應該會帶來一些額外的收入和 EBITDA 成長。

Gentlemen, very helpful. I appreciate all the color and continue best of luck.

先生們，非常有幫助。我欣賞所有的色彩，並繼續祝你好運。

Thanks.

謝謝。

John Franzreb, Sidoti & Company.

約翰‧弗朗茨雷布 (John Franzreb)，Sidoti & Company。

Good morning, guys, and congratulations on another good quarter. And I'd like to start with the revenue profile in the fourth quarter. You suggested there was unusually warm on a seasonal basis, I'm wondering two things that suggests; A, that business is pulled from the first quarter into the fourth quarter and B, if that was the case, does suggest that maintaining guidance is actually more of a positive thing because you are backfill some of that revenue.

大家早安，恭喜您又一個季度取得良好業績。我想先介紹一下第四季的收入狀況。您說從季節角度來看，這裡的氣候異常溫暖，我想知道有兩點說明這一點； A，業務從第一季拉到了第四季度；B，如果是這樣的話，確實表明維持指引實際上更為積極，因為您正在填補部分收入。

That's a good point, John, I think on the Metal Coatings side, getting an earlier start, it kind of depends on what. -- So we did see some of that pull in and stay active. Hopefully, there are some additional projects that come in the pipeline as we get into summer months and into fall.

約翰，你的觀點很好，我認為就金屬塗層方面而言，能否儘早起步，這取決於什麼。 ——因此我們確實看到其中一些被吸引並保持活躍。希望在我們進入夏季和秋季時，能夠有一些更多的項目陸續推出。

And then on the Precoat side, this the normal ordering cycles of the construction ramp up. I would, I'm not sure a whole lot pulled pulled in from from first quarter but potentially a little bit in terms of inventory buildup among some of our customers. So yes, we feel like the guidance is solid and as traditionally, we tried to be conservative. And then we'll continue to update that as the year goes on.

然後在預塗方面，這是施工增加的正常訂購週期。我會，我不確定從第一季開始是否有很大的成長，但可能我們的一些客戶的庫存累積有一點成長。所以是的，我們覺得指導是可靠的，而且按照傳統，我們試圖保持保守。隨著時間的推移，我們將繼續更新。

Fair enough. And you also mentioned in the press release there was market share gains on the Precoat side. Can you talk a little bit about the market share gains and we're getting it from.

很公平。您也在新聞稿中提到，預塗層的市佔率有所成長。您能否談談市場佔有率的成長以及我們的成長？

Yes, John, this is Dave. I think as you look at it, there's a couple of areas in the end markets. We're seeing some improvement and we believe we're outperforming the market in the construction segment and also in the appliance market has another area where we're outperforming and I'm seeing some conversions taking place. So those are the two main areas I'd point to.

是的，約翰，這是戴夫。我認為，從您的角度來看，終端市場有幾個領域。我們看到了一些進步，我們相信我們在建築領域的表現優於市場，在家電市場也是我們的表現優於其他領域，我看到一些轉變正在發生。這就是我要指出的兩個主要領域。

Okay. And one last question and I'll get back in queue. You talk about pricing initiatives on the Metal Coatings side of the business benefited the quarter. Can you just go a little bit deeper on that? Is that in response to zinc prices? What is going on in the pricing initiative front on MC?

好的。最後一個問題，然後我就回到隊列了。您談到金屬塗料業務方面的定價舉措使本季受益。您能更深入地講一下這個問題嗎？這是對鋅價格的反應嗎？MC 的定價主動權在哪裡？

Yes, I think we've always tried to talk about how we havve tried to differentiate our value pricing versus zinc, but it does help. Zinc has been trending up. And so as Zinc trends up, that tends to help support our price levels. I also think that we continue to add services and anywhere from adding more transportation so that we're able to be more responsive, but that also adds basically just revenue and flow through income and increases our price per hundredweight, if you will.

是的，我認為我們一直在嘗試談論如何區分我們的價值定價與鋅，但它確實有幫助。鋅一直呈上漲趨勢。因此，隨著鋅價格上漲，這往往有助於支撐我們的價格水準。我還認為，我們會繼續增加服務，增加運輸量，以便我們能夠更快地做出回應，但這也基本上增加了收入和流動收入，並且提高了每百磅的價格，如果你願意的話。

So I think all those things have they bode well. We also have improved. We added another spin line late last year, so we're getting the benefit of that. And that tends to be at a higher price fper hundredweight. It actually tends to be priced for per piece. So those are all things that have benefited us and we hope to continue to benefit from as we go forward this year.

所以我認為所有這些都是好兆頭。我們也取得了進步。我們在去年年底增加了另一條旋轉生產線，因此我們從中獲益。而每英擔的價格往往較高。它實際上往往是按每件來定價的。這些都是使我們受益的事情，我們希望在今年繼續受益。

Great. Thanks for the additional color. I'll get back into queue.

偉大的。謝謝你添加的顏色。我會重新回到隊列。

Adam Thalhimer, Thompson Davis.

亞當塔希默、湯普森戴維斯。

Hey, guys. Congrats on a strong quarter. And Philip, congrats on your retirement. -- In Metal Coatings, so your gross margins were up 170 basis points in fiscal 2024. Curious how that might trend in fiscal 2025, if there's room for more improvement.

嘿，大家好。恭喜您本季業績強勁。菲利普，恭喜你退休。 ——在金屬塗料領域，你們的毛利率在 2024 財年上漲了 170 個基點。好奇如果還有改進空間的話，2025 財年的趨勢會如何。

And I think this we talked a lot about DGS and the leadership teams and our playbooks. We believe we are benefiting from that. And then we should continue to benefit and hopefully hold those margin improvements and continue to benefit from the various strategies or tactics that we using. We feel pretty confident with the team. And as long as volumes hold up, I believe we can drive those margins.

我認為我們討論了很多關於 DGS、領導團隊和我們的劇本。我們相信，我們將從中受益。然後我們應該繼續受益，並希望保持這些利潤率的提高，並繼續受益於我們使用的各種策略或戰術。我們對這個團隊非常有信心。只要銷量不變，我相信我們就能提高利潤率。

Okay. And then at pre-COVID, is this normal seasonality between November and February or sounds like you also just had a really good quarter and Precoat in February.

好的。然後在 COVID 之前，這是 11 月到 2 月之間的正常季節性嗎？

We did. So part of this is yes, it was a lighter winter than normal. But also I think just we had mentioned last fourth quarter where we were carrying a lot of customer inventory and we clean that out as we got into the fiscal year.

我們做到了。所以部分原因是，這個冬天比往年還要溫暖。但我也記得我們剛才提到過，去年第四季我們持有大量客戶庫存，進入財政年度後我們會清理這些庫存。

Good operating performance by the team in Precoat. And then so this fourth quarter, I think it was the benefit of kind of normal customer inventory sitting in our facilities, which allows us to drive productivity and efficiency. And then the volume just to we start to get when volume flows through those margins tend to pop nicely.

Precoat 團隊的營運表現良好。那麼，在第四季度，我認為這是由於我們工廠中存放正常客戶庫存的好處，這使我們能夠提高生產力和效率。然後，當體積流過這些邊緣時，我們開始獲得的體積往往會順利彈出。

Okay. And then you guys have a like an actual interest expense and tax rate forecast that's embedded in the guidance?

好的。那麼，你們是否有類似指引中所包含的實際利息支出和稅率預測？

We do, I mean, we look at the forward curve on our interest rates. So just like everybody else out there, we are expecting four to six cuts this year than we got out there and we're able to reprice here in March 2024, which wouldn't have been part of our original forecast.

我的意思是，我們確實會關注我們的利率遠期曲線。因此，就像其他人一樣，我們預計今年的降息次數將比之前的降息次數多四到六次，我們能夠在 2024 年 3 月重新定價，這並不在我們最初的預測之內。

Well, we don't have cuts factored in. We have the yes, the forward curve just to Jorg are not actors, but not any additional cuts. (Multiple Speakers)

嗯，我們沒有考慮削減。我們有是的，前向曲線只是對 Jorg 來說不是演員，但沒有任何額外的削減。（多位發言者）

And then on the tax rate, we have a 21% stat rate and then we're primarily North America, so call it 3% 3.5% to 4%. So that's kind of 23.5% to 24% tax rate is what we utilize.

然後就稅率而言，我們的法定稅率為 21%，而且我們主要是北美，所以稱之為 3%、3.5% 到 4%。因此我們採用的稅率是 23.5% 到 24%。

Okay. I'll turn it over. Thank you.

好的。我把它翻過來。謝謝。

Jon Braatz, Kansas City Capital.

堪薩斯城資本公司的喬恩‧布拉茲 (Jon Braatz)。

Tom, can you talk a little bit about Washington, Missouri. As you as you ramp up, what can you say about maybe start-up costs or costs you're absorbing prior to production? And is there a little bit of a drag on margins for this fiscal year.

湯姆，你能談談密蘇裡州的華盛頓嗎？隨著你們的擴張，你能談談啟動成本或生產前吸收的成本嗎？本財年的利潤率是否會受到一些拖累？

And now there should be I think we've got all that plan, but in our budgets for how we're going to ramp up. And naturally, we've got a little bit of contingency in there, too. So we've got some decisions to make as the line tested out and comes online, whether we actually start producing at the end of the year or whether we just carry in and meet the normal customer demand that's been committed. So but in either case, I don't look for that to be a drag. So there should be an opportunity.

現在我想我們已經有了所有的計劃，但在我們的預算中我們已經考慮瞭如何擴大規模。當然，我們也準備了一些應急措施。因此，在生產線測試並上線時，我們需要做出一些決定，是否真的在年底開始生產，還是只是繼續生產並滿足已承諾的正常客戶需求。所以，無論哪種情況，我都不認為那會變成一種負擔。所以應該有機會。

Okay. And how much of production is committed at this point?

好的。目前已承諾生產多少？

75% is contractually committed. And that's kind of how -- we've built the model. And in fact that ends. So we've got 25% to go sell, although in this case through the customer that made that commitment actually would have liked to have had a 100% of it. So we've got upside with the with this customer, which we hope to announce here in the next a month or so. And then secondly, there's it does give us the opportunity to go chase some other business, which I always like having that ability to do that.

75% 已依合約承諾。這就是我們建立模型的方式。事實上這一切都結束了。因此，我們有 25% 的庫存可以出售，儘管在這種情況下，做出承諾的客戶實際上希望獲得 100% 的庫存。因此，我們與這位客戶的關係取得了進展，我們希望在未來一個月左右宣布這一消息。其次，它確實為我們提供了拓展其他業務的機會，我一直喜歡擁有這樣的能力。

That at the most, what would you like to see committed by one customer? You're 75% now? I mean, would you be okay, at 85%, 90%?

那最多你希望看到一個客戶做出什麼承諾？現在完成 75% 了嗎？我的意思是，達到 85% 或 90% 就沒問題了嗎？

Yes, I think so. I always hesitate to give you that dependent on one customer. But in this case, because it's a seven year contractual arrangement, I'm less concerned, so to speak. And obviously with that much business, we do have another plant in St. Louis that does, it's a smaller capability, but we do have another aluminum line well two actually. So, we do have that opportunity to pickup business and make sure that we balance that between both plants.

是的，我認為是這樣。我總是猶豫著把那份依賴交給你一個客戶。但在這種情況下，因為這是一個七年的合約安排，所以我可以說沒那麼擔心。顯然，由於業務量如此之大，我們在聖路易斯還有另一家工廠，雖然產能較小，但我們有另一條鋁生產線，實際上有兩條。因此，我們確實有機會增加業務並確保在兩個工廠之間實現平衡。

Okay. Thank you very much.

好的。非常感謝。

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

我們的問答環節到此結束。我想請湯姆·弗格森在會議結束時作最後發言。

Thank you for your time today. As you can tell, we're excited about our future and I look forward to updating you on our first quarter results in just a few months.

感謝您今天抽出時間。如您所知，我們對我們的未來充滿興奮，我期待在幾個月後向您報告我們的第一季業績。

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。