Balchem Corp (BCPC) 2023 Q1 法說會逐字稿

Greetings, and welcome to Balchem's First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 Balchem 2023 年第一季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Martin Bengtsson, Chief Financial Officer. Thank you, Martin. You may begin.

現在我很高興向您介紹主持人，首席財務官 Martin Bengtsson。謝謝你，馬丁。你可以開始了。

Thank you, and good morning, everyone. Thank you for joining our conference call this morning to discuss the results of Balchem Corporation for the quarter ending March 31, 2023. My name is Martin Bengtsson, Chief Financial Officer, and hosting this call with me is Ted Harris, our Chairman, President and CEO. Following the advice of our counsel, auditors and the SEC, at this time, I would like to read our forward-looking statement.

謝謝大家，大家早上好。感謝您今天早上參加我們的電話會議，討論 Balchem Corporation 截至 2023 年 3 月 31 日的季度業績。我是首席財務官 Martin Bengtsson，主持本次電話會議的是我們的董事長、總裁兼首席執行官 Ted Harris。 CEO。根據我們的律師、審計師和 SEC 的建議，此時，我想閱讀我們的前瞻性聲明。

Statements made in today's call that are not historical facts are considered forward-looking statements. We can give no assurance that the expectations reflected in forward-looking statements will prove correct, and various factors could cause actual results to differ materially from our expectations, including risks and factors identified in Balchem's most recent Form 10-K, 10-Q and 8-K reports. The company assumes no obligation to update these forward-looking statements.

今天的電話會議中所作的非歷史事實的陳述被視為前瞻性陳述。我們不能保證前瞻性陳述中反映的預期將被證明是正確的，並且各種因素可能導致實際結果與我們的預期存在重大差異，包括 Balchem 最新的 10-K、10-Q 表格和 10-K 表格中確定的風險和因素。 8-K 報告。該公司不承擔更新這些前瞻性陳述的義務。

Today's call and commentary include non-GAAP financial measures. Please refer to the reconciliation in our earnings release for further details.

今天的電話會議和評論包括非公認會計準則財務指標。有關更多詳細信息，請參閱我們的收益發布中的調節表。

I will now turn the call over to Ted Harris, our Chairman, President and CEO.

現在我將把電話轉給我們的董事長、總裁兼首席執行官特德·哈里斯 (Ted Harris)。

Thanks, Martin. Good morning, and welcome to our conference call. This morning, we reported our first quarter financial results with record first quarter revenues of $233 million, which were up 1.6% versus the prior year's very strong quarterly results. These higher sales drove higher adjusted earnings from operations of $45 million, which were up 1.2% versus the prior year quarter.

謝謝，馬丁。早上好，歡迎參加我們的電話會議。今天早上，我們公佈了第一季度財務業績，第一季度收入達到創紀錄的 2.33 億美元，與去年非常強勁的季度業績相比增長了 1.6%。銷售額的增加推動調整後運營利潤增加至 4500 萬美元，比去年同期增長 1.2%。

Our record first quarter adjusted EBITDA of $56 million was $3 million higher an increase of 4.8% versus the $54 million achieved in the prior year. And adjusted EBITDA margin was 24.1% of sales, up 73 basis points from the prior year results.

第一季度調整後 EBITDA 達到創紀錄的 5,600 萬美元，比上一年的 5,400 萬美元增加了 300 萬美元，增幅為 4.8%。調整後的 EBITDA 利潤率為銷售額的 24.1%，比上年業績增長 73 個基點。

Our first quarter net income of $23 million, a decrease of 21.5% resulted in earnings per share of $0.70 on a GAAP basis. On an adjusted basis, our first quarter non-GAAP net earnings were $31 million a decrease of 8.3%, resulting in earnings per share of $0.94 on a non-GAAP basis. Cash flows from operations were $35 million for the first quarter of 2023, an increase of 396% versus the first quarter of 2022, with quarterly free cash flow of $25 million.

我們第一季度淨利潤為 2300 萬美元，下降 21.5%，導致按 GAAP 計算的每股收益為 0.70 美元。調整後，我們第一季度非 GAAP 淨利潤為 3100 萬美元，下降 8.3%，導致非 GAAP 每股收益為 0.94 美元。 2023 年第一季度運營現金流為 3500 萬美元，較 2022 年第一季度增長 396%，季度自由現金流為 2500 萬美元。

Overall, another solid quarter for Balchem with performance that highlights the strength and resilience of our business model in a challenging market environment. Before passing the call back to Martin to cover more detailed financial results, I would like to make a few comments about the overall market environment and what we are seeing, provide a brief update on our progress around sustainability as reviewed in our recently published 2022 sustainability report and also highlight some exciting progress around their commercial and science activities.

總體而言，Balchem 又是一個穩健的季度，其業績突顯了我們的業務模式在充滿挑戰的市場環境中的實力和彈性。在將電話轉回給馬丁以涵蓋更詳細的財務業績之前，我想對整體市場環境和我們所看到的情況發表一些評論，並簡要介紹我們在可持續發展方面取得的進展，正如我們最近發布的 2022 年可持續發展中所回顧的那樣報告並強調了他們的商業和科學活動的一些令人興奮的進展。

The current market environment continues to be quite challenging with a high degree of uncertainty. As discussed on earlier calls, we experienced destocking in the latter part of 2022 and the early part of 2023, with customers adjusting their inventory levels down as supply chains become more reliable and the demand outlook became more uncertain.

當前的市場環境仍然充滿挑戰，具有高度的不確定性。正如之前電話會議中所討論的，我們在 2022 年下半年和 2023 年上半年經歷了去庫存，隨著供應鏈變得更加可靠、需求前景變得更加不確定，客戶調整了庫存水平。

There is still a high degree of uncertainty around which direction the broader economy will go, and we are seeing higher than normal volatility in order patterns as customers are not really sure what level of future demand they are planning for and perspectives change frequently.

更廣泛的經濟將走向哪個方向仍然存在高度的不確定性，而且我們看到訂單模式的波動性高於正常水平，因為客戶並不確定他們計劃的未來需求水平，而且觀點經常發生變化。

From a Balchem perspective, I am pleased with how we have managed through this dynamic environment. Our market positions and value propositions in the various markets we serve have enabled us to maneuver through these volatile times quite well. While our first quarter revenues were relatively flat compared to the fourth quarter of 2022. We grew our gross margins and earnings from operations sequentially. While it is hard for us to predict the timing of when the markets will truly normalize and reset for continued growth, we do believe they will improve in the second half of the year and we believe we are well positioned to benefit when that time comes.

從 Balchem 的角度來看，我對我們在這個充滿活力的環境中的管理方式感到滿意。我們在所服務的各個市場中的市場地位和價值主張使我們能夠很好地度過這些動蕩的時期。雖然我們第一季度的收入與 2022 年第四季度相比相對持平。但我們的毛利率和運營利潤均有所增長。雖然我們很難預測市場何時真正正常化並重新調整以實現持續增長，但我們確實相信市場將在下半年有所改善，並且我們相信到那時我們已經做好了受益的準備。

Just a few days ago, we published our 2022 sustainability report, which captures the company's commitment to managing our environmental, social and governance performance. Balchem's sustainability initiatives are fully integrated into our business strategy and are critical to our vision of making the world a healthier place. We took meaningful steps toward advancing diversity, equity, inclusion and belonging at Balchem and remain committed to fostering a diverse and inclusive culture in which everyone feels welcomed, valued and appreciated while inspiring our external stakeholders to share our vision.

就在幾天前，我們發布了 2022 年可持續發展報告，其中體現了公司對管理環境、社會和治理績效的承諾。 Balchem 的可持續發展舉措完全融入我們的業務戰略，對於我們讓世界變得更健康的願景至關重要。我們為推進 Balchem 的多樣性、公平性、包容性和歸屬感採取了有意義的步驟，並繼續致力於培育多元化和包容性的文化，讓每個人都感到受歡迎、受到重視和讚賞，同時激勵我們的外部利益相關者分享我們的願景。

Our sustainability report demonstrates the company's continuing promise to provide our employees, customers, shareholders and the communities within which we operate. with information on Balchem's sustainability initiatives and includes our progress on our 2030 goals and strategies for both greenhouse gas emissions and water withdrawal reduction.

我們的可持續發展報告表明了公司對為我們的員工、客戶、股東和我們經營所在的社區提供服務的持續承諾。提供有關 Balchem 可持續發展舉措的信息，包括我們在 2030 年目標以及溫室氣體排放和減少取水量戰略方面取得的進展。

In 2022, we exceeded our 2030 greenhouse gas emissions reduction goal and achieved a combined Scope 1 and Scope 2 greenhouse gas reduction of 27% versus the year before. This puts us in a good position to execute on our strategic growth plans and achieve our 2030, 25% absolute reduction target. Additionally, Balchem consumed slightly less than 4 million cubic meters of water in 2022, a level 1% below our 2020 baseline and 5% below our 2021 results.

2022 年，我們超額完成了 2030 年溫室氣體減排目標，範圍 1 和範圍 2 溫室氣體排放量比上年同期減少了 27%。這使我們能夠更好地執行我們的戰略增長計劃並實現 2030 年絕對減排 25% 的目標。此外，Balchem 2022 年的用水量略低於 400 萬立方米，比 2020 年基線低 1%，比 2021 年結果低 5%。

As we work to implement intensive water reuse and recycling projects, we are also implementing other efficiency improvements. We are pleased to see a trend of improvement in our absolute water withdrawal result from these initiatives. The combination of these planned efficiencies and significant changes in our use of process water will ensure that we will meet or exceed our 2030 goal. I would encourage you to go to balchem.com to read the recently published report to get a broader perspective on all of the great work we are doing.

在我們努力實施集約化水回用和回收項目的同時，我們還在實施其他效率改進措施。我們很高興看到這些舉措的絕對取水量結果呈改善趨勢。這些計劃的效率和我們工藝用水使用的重大變化相結合，將確保我們達到或超過 2030 年的目標。我鼓勵您訪問 balchem.com 閱讀最近發布的報告，以更廣泛的視角了解我們正在開展的所有出色工作。

Turning our attention to our commercial and science activities for a few minutes. Within our Human Nutrition & Health segment we were excited to recently launch our K2VITAL MCT as USDA organic certified. We are proud to say that it is the first certified organic vitamin K2-MK7 solution on the U.S. market, meeting the ever rising need for organic products. And further differentiating Balchem in the marketplace.

將我們的注意力轉向我們的商業和科學活動幾分鐘。在我們的人類營養與健康領域，我們很高興最近推出了獲得美國農業部有機認證的 K2VITAL MCT。我們很自豪地說，它是美國市場上第一個經過認證的有機維生素 K2-MK7 解決方案，滿足了對有機產品不斷增長的需求。並進一步使 Balchem 在市場上脫穎而出。

Additionally, in support of our Albion branded chelated iron mineral product in February, the pooled data from 9 randomized controlled trials in over 1,100 pregnant women was published in a systematic review and meta-analysis and showed that supplementation with ferrous bisglycinate including Balchem's (inaudible), which was cited in some of the trials, resulted in significantly higher hemoglobin results than all other iron salts. While reducing GI side effects by nearly 69%. This is an exciting study that will provide further support for our efforts to drive increased market penetration with our market-leading chelated minerals.

此外，為了支持我們 2 月份的 Albion 品牌螯合鐵礦物質產品，系統評價和薈萃分析中發表了來自 9 項隨機對照試驗的 1,100 多名孕婦的匯總數據，結果表明補充雙甘氨酸亞鐵（包括 Balchem 的）（聽不清）一些試驗中引用的鐵鹽導致的血紅蛋白結果顯著高於所有其他鐵鹽。同時減少近 69% 的胃腸道副作用。這是一項令人興奮的研究，將為我們利用市場領先的螯合礦物質提高市場滲透率的努力提供進一步的支持。

Balchem currently has 16 clinical studies that are active, as well as half a dozen studies in various stages of protocol development. Most of the studies are being conducted by independent world-class investigators in the United States, Europe and Africa. This is a significant increase in not only the number of studies being supported by our Human Nutrition Science team, but also the Scope.

Balchem 目前有 16 項正在進行的臨床研究，以及六項處於方案開發不同階段的研究。大多數研究是由美國、歐洲和非洲的世界級獨立研究人員進行的。這不僅是我們人類營養科學團隊支持的研究數量的顯著增加，而且範圍也顯著增加。

During the first quarter of 2023, the Animal Nutrition & Health segment also continued to advance our strategic priorities with significant progress being made across several areas of the business. Balchem presented the results of 3 seminal research studies supporting the use of ReaShure, our market-leading rumen-protected choline during several key first quarter dairy industry events.

2023 年第一季度，動物營養與健康部門還繼續推進我們的戰略重點，多個業務領域都取得了重大進展。 Balchem 在第一季度的幾場關鍵乳製品行業活動中展示了 3 項開創性研究的結果，支持使用我們市場領先的瘤胃保護膽鹼 ReaShure。

The research was completed at the Universities of Florida, Wisconsin and Michigan State, demonstrating the consistent milk production and immunological benefit of feeding ReaShure as well as the benefit to the young calf for mothers supplemented with choline.

該研究是在佛羅里達大學、威斯康星大學和密歇根州立大學完成的，證明了餵養 ReaShure 的持續產奶量和免疫益處，以及補充膽鹼的母親對幼犢的益處。

This research continues to support our value proposition for ReaShure as a required nutrient for all cows, no matter their production level or health steps.

這項研究繼續支持我們的價值主張，即 ReaShure 作為所有奶牛所需的營養素，無論其生產水平或健康狀況如何。

Additionally, we recently learned that 4 scientific abstracts supporting research recently completed on our ruminant encapsulated products would be accepted for presentation at the upcoming American Dairy Science Association Annual Meeting in Ottawa, Canada. These presentations will help to demonstrate the superiority of our time to release functionality in products such as NitroShure, our precision released urea offering a unique advantage for dairy cows to optimize rumen function and efficiency.

此外，我們最近了解到，支持我們最近完成的反芻動物膠囊產品研究的 4 篇科學摘要將被接受在即將於加拿大渥太華舉行的美國乳品科學協會年會上進行展示。這些演示將有助於展示我們在 NitroShure 等產品中釋放功能的優越性，我們的精確釋放尿素為奶牛優化瘤胃功能和效率提供了獨特的優勢。

And lastly, in our pet or companion business, we are recently pleased to learn that a recent study highlighting our picture encapsulated acids had been accepted and published in the esteemed journal of food production. This research further validated the position that PetShure encapsulated acids helped to reduce the microbial exposure in raw meat-based diet, especially salmonella, when mixed into the formulation along with other additives. This research is some of the first of its kind to demonstrate such strong antimicrobial effect across time due to the unique nature of our encapsulation times release products.

最後，在我們的寵物或伴侶業務中，我們最近很高興地獲悉，最近一項強調我們圖片封裝酸的研究已被接受並發表在受人尊敬的食品生產雜誌上。這項研究進一步證實了這樣的觀點：PetShure 封裝酸與其他添加劑混合到配方中時，有助於減少生肉飲食中的微生物暴露，尤其是沙門氏菌。由於我們的封裝時間釋放產品的獨特性質，這項研究首次證明了隨著時間的推移具有如此強大的抗菌效果。

So good progress being made in both our Human Nutrition & Health and Animal Nutrition Health business segments. Building the science behind our products and helping to ultimately drive further market penetration.

我們的人類營養與健康和動物營養健康業務領域都取得了良好的進展。建立我們產品背後的科學原理，並最終幫助進一步推動市場滲透。

And with that, I will now turn the call back over to Martin to go through the detailed financial results.

現在，我將把電話轉回給馬丁，以查看詳細的財務業績。

Thank you, Ted. As Ted mentioned, overall, the first quarter was another solid quarter for Balchem, particularly in the context of the very strong first half of 2022. Our first quarter net sales of $233 million were 1.6% higher than the prior year. Sales from our recent acquisitions contributed 6.2% to our sales growth, while the impact from foreign currency exchange, driven primarily by the weaker euro, had a negative impact to our sales growth of approximately 0.7%.

謝謝你，特德。正如 Ted 提到的，總體而言，第一季度對 Balchem 來說又是一個穩健的季度，特別是在 2022 年上半年非常強勁的背景下。我們第一季度的淨銷售額為 2.33 億美元，比上一年增長 1.6%。我們最近收購的銷售額對我們的銷售增長貢獻了 6.2%，而主要由歐元疲軟推動的外匯影響對我們的銷售增長產生了約 0.7% 的負面影響。

Our first quarter gross margin dollars of $73 million were up $2 million or 2.3% compared to the prior year. Our gross margin percent was 31.5% of sales in the quarter, up 22 basis points compared to 31.2% in the first quarter of 2022. The 31.5% gross margin, it's a significant improvement to the 29.5% we saw in Q4 2022 and the 28% we saw in Q3 2022. And the result of pricing actions taken to recover higher input costs in combination with lower inflationary pressure. While we continue to experience net inflation from a year-over-year perspective, we finally did see modest sequential net deflation compared to Q4 2022 as it relates to our raw material purchases, which helped support the gross margin improvement.

我們第一季度的毛利率為 7300 萬美元，比去年同期增加了 200 萬美元，即 2.3%。我們本季度的毛利率佔銷售額的 31.5%，與 2022 年第一季度的 31.2% 相比，增長了 22 個基點。31.5% 的毛利率比我們在 2022 年第四季度和 28 年第四季度看到的 29.5% 有了顯著改善。我們在 2022 年第三季度看到的百分比。以及為收回較高投入成本和較低通脹壓力而採取的定價行動的結果。雖然從同比角度來看，我們繼續經歷淨通脹，但與 2022 年第四季度相比，我們最終確實看到了適度的連續淨通貨緊縮，因為這與我們的原材料採購有關，這有助於支持毛利率的改善。

Consolidated operating expenses for the first quarter of 2023 were $39 million as compared to $33 million in the prior year. The increase was primarily due to incremental expenses and amortization from the Kappa and Bergstrom acquisitions. GAAP earnings from operations for the first quarter were $34 million. A decrease of $4 million or 10.2% compared to the prior year quarter.

2023 年第一季度的綜合運營費用為 3900 萬美元，而上一年為 3300 萬美元。這一增長主要是由於收購 Kappa 和 Bergstrom 的增量費用和攤銷。第一季度 GAAP 運營收益為 3400 萬美元。與去年同期相比減少 400 萬美元，即 10.2%。

On an adjusted basis, as detailed in our earnings release this morning, non-GAAP earnings from operations of $45 million were up 1.2% compared to the prior year quarter. Adjusted EBITDA of $56 million was $3 million or 4.8% above the first quarter of 2022. Interest expense for the first quarter of 2023 was $6 million, an increase of $5 million compared to the prior year. This increase in interest expense is driven both by the increased debt level following our 2022 acquisitions and the significantly higher interest rate environment.

正如我們今天上午發布的財報中所詳述的，經調整後的非公認會計原則運營利潤為 4500 萬美元，與去年同期相比增長了 1.2%。調整後 EBITDA 為 5600 萬美元，比 2022 年第一季度增加 300 萬美元，即 4.8%。2023 年第一季度利息支出為 600 萬美元，比上年增加 500 萬美元。利息支出的增加是由於 2022 年收購後債務水平增加以及利率環境顯著升高所致。

Our first quarter ending net debt was $371 million with an overall leverage ratio on a net debt basis of 1.7. The company's effective tax rates for the first quarters of 2023 and 2022 were 22% and 23.1%, respectively. The decrease in the effective tax rate from the prior year was primarily due to higher tax benefits from stock-based compensation, an increase in certain tax credits and certain lower state taxes. Consolidated net income closed the quarter at $23 million, down 21.5% from the prior year driven primarily by the higher interest expense, along with the amortization expenses related to the 2022 acquisitions. This quarterly net income translated into diluted net earnings per share of $0.70, a decrease of $0.19 or 21.4% from last year's comparable quarter.

我們第一季度期末淨債務為 3.71 億美元，淨債務基礎上的總體槓桿率為 1.7。該公司2023年和2022年第一季度的有效稅率分別為22%和23.1%。有效稅率較上年下降的主要原因是股票補償帶來的稅收優惠增加、某些稅收抵免的增加以及某些州稅的降低。本季度合併淨利潤為 2300 萬美元，比上年下降 21.5%，這主要是由於利息費用增加以及與 2022 年收購相關的攤銷費用所致。本季度淨利潤折算成稀釋後每股淨利潤為 0.70 美元，比去年同期減少 0.19 美元，即 21.4%。

Our first quarter adjusted net earnings were $31 million or $0.94 per diluted share down 8.3% compared with the prior year quarter, driven primarily by the increased interest expense. Cash flows from operations were $35 million, as mentioned earlier, an increase of 396% versus the first quarter of 2022, and we closed out the quarter with $60 million of cash on the balance sheet.

我們第一季度調整後淨利潤為 3100 萬美元，即稀釋後每股收益 0.94 美元，與去年同期相比下降 8.3%，這主要是由於利息支出增加。如前所述，運營現金流為 3500 萬美元，與 2022 年第一季度相比增長了 396%，本季度結束時，我們的資產負債表上有 6000 萬美元現金。

In the first quarter, cash flows returned to a more normal level after the cash squeeze we experienced in the first quarter of last year when escalating inflation and protracted supply chains negatively impacted our cash conversion cycle.

去年第一季度我們經歷了現金緊縮，當時通脹升級和供應鏈拖延對我們的現金轉換週期產生了負面影響，今年第一季度，現金流恢復到了更正常的水平。

As we look at it from a segment perspective, for the quarter, our Human Nutrition & Health segment generated quarterly sales of $133 million, an increase of 8.3% from the prior year. The increase was driven by the contribution from recent acquisitions, partially offset by lower sales within the minerals and nutrients business, and food and beverage markets.

從細分市場的角度來看，本季度人類營養與健康細分市場的季度銷售額為 1.33 億美元，比上年增長 8.3%。這一增長是由最近收購的貢獻推動的，但部分被礦物質和營養品業務以及食品和飲料市場的銷售額下降所抵消。

Our Human Nutrition & Health segment delivered quarterly earnings from operations of $18 million, a decrease of 9.2% compared to prior year. This was driven by expenses and amortization related to recent acquisitions, which were partially offset by higher average selling prices.

我們的人類營養與健康部門季度運營利潤為 1800 萬美元，比上年下降 9.2%。這是由與最近收購相關的費用和攤銷推動的，但部分被較高的平均售價所抵消。

First quarter adjusted earnings from operations for this segment were $27 million, an increase of $3 million or 10.5%.

第一季度該部門調整後的運營利潤為 2700 萬美元，增加了 300 萬美元，即 10.5%。

As discussed in our last earnings call, we're experiencing some market demand softness in our Human Nutrition & Health segment, particularly in the dietary supplements market where demand is normalizing following the very strong demand we experienced during the pandemic, which resulted in particularly strong sales in the first half of last year.

正如我們在上次財報電話會議中所討論的那樣，我們的人類營養與健康領域正在經歷一些市場需求疲軟，特別是在膳食補充劑市場，在大流行期間經歷了非常強勁的需求之後，需求正在正常化，這導致了特別強勁的需求去年上半年的銷量。

Recent U.S. retail sales data provided by Nielsen for dietary supplements still show negative growth year-over-year for the first quarter. But improving modestly sequentially versus the fourth quarter of 2022 and sales levels remain above the pre-pandemic period.

尼爾森近期提供的美國膳食補充劑零售數據仍顯示第一季度同比負增長。但與 2022 年第四季度相比，銷量略有改善，銷售水平仍高於大流行前水平。

Overall sales for Balchem's Human Nutrition & Health segment were up 1.7% sequentially. Over the course of the year, our expectation is that the supplements market will return to growth in line with its historical growth trajectory.

Balchem 人類營養與健康部門的整體銷售額比上一季度增長 1.7%。在這一年中，我們預計補充劑市場將按照其歷史增長軌跡恢復增長。

Our Animal Nutrition & Health segment generated quarterly sales of $65 million, a decrease of 6.4% compared to the prior year. The decrease in sales was the result of lower sales in both monogastric and ruminants market in Europe and an unfavorable impact related to changes in foreign currency exchange rates partially offset by higher sales in both monogastric and ruminant markets in North America.

我們的動物營養與健康部門季度銷售額為 6500 萬美元，比上年下降 6.4%。銷售額下降的原因是歐洲單胃動物和反芻動物市場銷售額下降以及與外匯匯率變化相關的不利影響，但北美單胃動物和反芻動物市場銷售額增加部分抵消了這一影響。

Overall sales for Balchem's Animal Nutrition & Health segment were essentially flat sequentially. Animal Nutrition & Health delivered earnings from operations of $9 million, a decrease of 16.1% from the prior year quarter, primarily due to the lower sales. While earnings from operations declined on a year-over-year basis, the first quarter of 2023 was the third straight quarter of sequential improvement as we gradually recover margins following the rapid inflationary environment we experienced early last year.

Balchem 動物營養與健康部門的整體銷售額與上季度基本持平。動物營養與健康部門實現運營利潤 900 萬美元，比去年同期下降 16.1%，主要是由於銷售額下降。儘管運營利潤同比下降，但 2023 年第一季度是連續第三個季度實現環比改善，因為我們在去年初經歷了快速通脹環境後逐漸恢復了利潤率。

First quarter adjusted earnings from operations for this segment were $10 million, a decrease of 13.4%.

第一季度該部門調整後的運營利潤為 1000 萬美元，下降 13.4%。

Similar to what we discussed in Human Nutrition & Health, our Animal Nutrition & Health segment is also experiencing increased demand volatility, particularly in Europe. As we shared during the last earnings call, the European food animal feed market continues to show some demand softness, which is in direct contrast to the relatively strong demand experienced this time last year. Lower feed demand in our key markets, poultry, swine and dairy across much of Europe has been driven by a combination of factors, including the spread of animal diseases, higher utility costs, increasing costs linked to environmental and animal welfare policy measures and the economic impact of the war in Ukraine.

與我們在人類營養與健康中討論的類似，我們的動物營養與健康部門也經歷著需求波動的增加，特別是在歐洲。正如我們在上次財報電話會議上分享的那樣，歐洲食用動物飼料市場繼續表現出一定的需求疲軟，這與去年同期相對強勁的需求形成鮮明對比。歐洲大部分地區的主要市場、家禽、豬和奶製品的飼料需求下降是由多種因素造成的，包括動物疾病的傳播、公用事業成本上升、與環境和動物福利政策措施相關的成本增加以及經濟增長。烏克蘭戰爭的影響。

With lower energy costs and disinflation, we believe we will see some stabilizing and normalization in the European food animal feed markets as we progress through 2023.

隨著能源成本下降和通貨緊縮，我們相信，隨著 2023 年的進展，歐洲食用動物飼料市場將出現一定程度的穩定和正常化。

While Europe has been more challenged lately, our larger U.S. market has been fairly stable and has not experienced anywhere near the same type of demand volatility. Our Specialty Products segment delivered quarterly sales of $32 million, a decrease of 3.3% compared to the prior year quarter, primarily due to lower plant nutrition sales and unfavorable impact related to changes in foreign currency exchange rates, partially offset by higher sales of products in the Performance Gases business.

雖然歐洲最近面臨更大的挑戰，但我們更大的美國市場一直相當穩定，並且沒有經歷過類似的需求波動。我們的特種產品部門季度銷售額為 3200 萬美元，比去年同期下降 3.3%，主要是由於植物營養銷售額下降以及與外幣匯率變化相關的不利影響，但部分被 2019 年產品銷售額增加所抵消。高性能氣體業務。

Overall, sales for Balchem's Specialty Products segment were up 1.3% sequentially. Specialty Products delivered earnings from operations of $8 million an increase of 2.4% versus the prior year quarter, driven primarily by increased average selling prices. First quarter adjusted earnings from operations for this segment were $9 million an increase of 1.1%.

總體而言，Balchem 特種產品部門的銷售額比上一季度增長 1.3%。特種產品業務營業利潤為 800 萬美元，與去年同期相比增長 2.4%，這主要是由於平均銷售價格的上漲。第一季度該部門調整後的運營利潤為 900 萬美元，增長 1.1%。

Within Specialty Products, we continue to see improvement in our Performance Gases business following the negative impact we experienced during the pandemic. Margins continue to improve as we have taken pricing actions to recover higher input costs, and we have also started to see some sequential reductions in raw material costs benefiting the business.

在特種產品領域，繼疫情期間遭受負面影響後，我們的高性能氣體業務繼續取得改善。由於我們採取定價行動來收回更高的投入成本，利潤率持續改善，而且我們也開始看到原材料成本的連續下降使業務受益。

With regards to plant nutrition, we experienced some softness in Q1 as sales into the Western United States has been pushed out driven by the unusually wet conditions.

在植物營養方面，我們在第一季度經歷了一些疲軟，因為美國西部的銷售因異常潮濕的天氣而受到影響。

I'm now going to turn the call back over to Ted for some closing remarks.

現在我要把電話轉回給特德，讓他做一些結束語。

Thanks, Martin. We are pleased with the solid financial results reported earlier this morning, and the year-over-year growth in sales and adjusted EBITDA, particularly in light of the strength of the prior year's comparable and the continued economic uncertainties we are facing in the marketplace. We continue to show resilience during this time of elevated economic market uncertainty and ability to manage through challenging and dynamic market environment.

謝謝，馬丁。我們對今天上午早些時候公佈的穩健財務業績以及銷售額和調整後 EBITDA 的同比增長感到滿意，特別是考慮到上一年可比業績的強勁以及我們在市場上面臨的持續經濟不確定性。在經濟市場不確定性加劇的時期，我們繼續表現出韌性，並有能力應對充滿挑戰和動態的市場環境。

I'm also very pleased with our progress around our sustainability efforts as detailed in our sustainability report that we published earlier this week. Sustainability is at the heart of our company's higher purpose of making the world a healthier place, and we continue to make good progress toward our goals while acting as strong stewards of all of our stakeholders. We are well positioned in the markets we serve and remain confident in the long-term growth outlook for our markets as we continue to focus on progressing our strategic growth initiatives in 2023 and beyond.

我也對我們在可持續發展努力方面取得的進展感到非常滿意，正如我們本週早些時候發布的可持續發展報告中詳細介紹的那樣。可持續發展是我們公司“讓世界變得更健康”這一崇高目標的核心，我們將繼續在實現我們的目標方面取得良好進展，同時充當所有利益相關者的堅強管理者。我們在所服務的市場中處於有利地位，並對市場的長期增長前景保持信心，因為我們將繼續專注於推進 2023 年及以後的戰略增長計劃。

I would now like to hand the call back over to Martin, who will open up the call for questions. Martin?

我現在想將電話轉回給馬丁，他將打開電話提問。馬丁？

Thank you, Ted. This now concludes the formal portion of the conference. At this point, we will open up the conference call for questions.

謝謝你，特德。會議的正式部分到此結束。此時，我們將召開電話會議以供提問。

(Operator Instructions) Our first question is from Mitra Ramgopal with Sidoti.

（操作員說明）我們的第一個問題來自 Mitra Ramgopal 和 Sidoti。

Just a couple of things I might have missed if you mentioned it. The impact of FX on the top line in Q1 and also volume versus price as it relates to the growth we saw?

如果你提到的話，我可能會錯過一些事情。外匯對第一季度營收的影響以及成交量與價格的影響，因為它與我們看到的增長有關？

Yes. So the impact of FX was about a negative 0.7% in the first quarter, Mitra. And I didn't quite catch the second part of your question.

是的。因此，Mitra，第一季度外彙的影響約為負 0.7%。我不太明白你問題的第二部分。

The top line growth, how much of it was, say, volume versus pricing?

營收增長，其中有多少是銷量增長與價格增長的關係？

Yes. It was primarily pricing. Volumes were slightly down. So really for the legacy business, if you adjust out acquisitions, it was driven primarily by pricing, if you sum it up, obviously, it varies a little bit depending on which part of the portfolio look like and business units, et cetera. But if you generalize across, it's mostly pricing.

是的。這主要是定價。成交量略有下降。因此，對於傳統業務來說，如果你調整收購，它主要是由定價驅動的，如果你總結一下，顯然，它會根據投資組合的哪一部分和業務部門等而略有不同。但如果你概括一下，主要是定價。

Okay. That's great. And then it looks like, obviously, it's still a lot of challenges in this environment, especially on the inflation front. But you've done a pretty good job being able to mitigate a lot of that with pricing. And how much room do you think you have on that front without necessarily impacting volume?

好的。那太棒了。顯然，在這種環境下仍然面臨很多挑戰，尤其是在通脹方面。但你們已經做得非常好，能夠通過定價來減輕很多影響。您認為在不影響銷量的情況下，您在這方面還有多少空間？

The -- I think we're -- I mean we're priced a lot over the last 18 months as needed to offset inflation. How much further can we go? It varies a little bit on, again, where in the portfolio you look, there are parts of the portfolio where I think we have sort of gotten to the point where further price increases has a direct impact on demand, and you would drive demand destruction, where there are some pockets where there's still some more pricing to be had.

我認為我們的意思是，我們在過去 18 個月中根據抵消通貨膨脹的需要定價很高。我們還能走多遠？再次，在您查看的投資組合中的哪些部分，情況略有不同，我認為投資組合的某些部分已經達到了價格進一步上漲對需求產生直接影響的地步，並且您將推動需求破壞，有些地方仍然有更多的定價。

But I think if you generalize with the environment we're in right now, where we see the raw materials on a sequential basis starting to deflate a little bit, there will be less about raising prices further and more sort of capturing the band that's available to us out there. So I don't think we're going to sort of aggressively pursue a lot of further price increases across the portfolio.

但我認為，如果你概括一下我們現在所處的環境，我們看到原材料連續開始有點通貨緊縮，那麼進一步提高價格的作用就會減少，而更多的是捕捉可用的區間給我們外面的人。因此，我認為我們不會積極推動整個投資組合的價格進一步大幅上漲。

Yes. Let me just kind of add, Mitra, that we were really pleased to see our overall adjusted EBITDA margin back in the 24s. And as we look at our overarching financial strategic goals, it's really to get back to the 25s, let's say, and so I think that we're very focused on regaining that lost margin that we've experienced over the last 2 or 3 years with all the inflation despite having raised prices dollar for dollar for costs, we've lost a little bit of margin, but we're really pleased that the sequential improvement get back in the 24s, I think, is a good milestone and we're focused on getting another, let's say, 100 basis points or so back into the 25s over the course of the next year, and we believe we can do that based on the price increases that we've already announced and some reduction in the inflation or the stabilization, if you will, of cost.

是的。 Mitra，我想補充一點，我們很高興看到整體調整後 EBITDA 利潤率回到了 24 多歲。當我們審視我們的總體財務戰略目標時，我們實際上是要回到 25 年代，所以我認為我們非常專注於恢復我們在過去 2 或 3 年中經歷的利潤損失由於通貨膨脹，儘管成本逐美元提高了價格，但我們還是損失了一點利潤，但我們真的很高興看到 24 年代的連續改善，我認為，這是一個很好的里程碑，我們'我們的重點是在明年將利率再提升 100 個基點左右，回到 25 左右，我們相信，基於我們已經宣布的價格上漲和通脹的一定程度下降，我們可以做到這一點或者，如果你願意的話，成本的穩定。

Okay. And the increase in operating expense, is that pretty much related to Kappa and Bergstrom? Or is there anything else driving that?

好的。運營費用的增加，與Kappa和Bergstrom有很大關係嗎？或者還有其他什麼因素在推動這一點嗎？

100% related to the acquisitions.

100%與收購相關。

Okay. And I know it's still very early regarding both acquisitions. But if you can just give us an update in terms of how the integration is going along, the sales force reorganization, cross-selling opportunities, et cetera.

好的。我知道這兩項收購現在還為時過早。但您能否向我們介紹一下整合進展情況、銷售隊伍重組、交叉銷售機會等方面的最新情況。

Yes. Maybe I'll kick it off and Martin, you can chime in. But we really are excited to have both Bergstrom and Kappa and their respective teams, a part of our company. I think we are in various stages of integration. I think we would say that the Bergstrom integration is essentially complete. It was a little bit easier. It was all in the United States. It was 1 single facility but their commercial team has been integrated with our commercial team, and we're starting to see the call reports come in from the sales organization talking about the portfolio of products that we have, including MSM and the legacy products.

是的。也許我會開始，馬丁，你可以插話。但我們真的很高興 Bergstrom 和 Kappa 以及他們各自的團隊成為我們公司的一部分。我認為我們正處於整合的不同階段。我想我們會說 Bergstrom 的整合基本上已經完成。這有點容易了。一切都發生在美國。這是 1 個單一設施，但他們的商業團隊已與我們的商業團隊整合，我們開始看到來自銷售組織的電話報告，談論我們擁有的產品組合，包括 MSM 和舊產品。

So I would say that integration is largely a complete and going very well. Obviously, that business, along with Kappa is also susceptible to some of the destocking and dietary supplement slowdown. And so that's impacted both of those businesses. But from an integration perspective, long-term growth perspective, we remain excited and feel good about the integration.

所以我想說，整合基本上已經完成並且進展順利。顯然，該業務以及 Kappa 也容易受到庫存減少和膳食補充劑放緩的影響。這對這兩個業務都產生了影響。但從整合的角度來看，長期增長的角度來看，我們仍然對整合感到興奮和感覺良好。

Kappa is a little bit slower just because of the complexity of the international reach of that business, but it's also going very well. We -- we have one organization now. We have leaders in place, clarity around the organizational structure. We're going through training, and we're focused on really operating now as one company.

由於該業務國際影響力的複雜性，Kappa 的速度有點慢，但它也進展順利。我們——我們現在有一個組織。我們有領導者，組織結構清晰。我們正在接受培訓，現在我們專注於作為一家公司真正運營。

And again, that's going very well as well. And I think we mentioned on the last call that we're now all on one ERP system. So we've -- we have both Bergstrom and Kappa on our Microsoft Dynamics 365, and that certainly simplifies the back office activity and helps that integration. So, so far, so good relative to the integrations we feel good about.

再說一遍，一切進展順利。我想我們在上次電話會議中提到我們現在都在同一個 ERP 系統上。因此，我們在 Microsoft Dynamics 365 上安裝了 Bergstrom 和 Kappa，這無疑簡化了後台活動並有助於集成。所以，到目前為止，相對於我們感覺良好的集成來說，情況非常好。

Okay. And just as it relates to capital allocation, I'm assuming acquisitions are probably not a focus right now on more debt reduction. Is that fair?

好的。正如它與資本配置相關一樣，我認為收購可能不是目前更多債務削減的重點。這公平嗎？

Yes, maybe I'll chime in, again, Martin, you can join for some color. But I wouldn't quite say it just like you said, but I think thematically, you're not far off. We clearly are focused on investing in our organic growth, investing in our plant and equipment where needed. We still are very actively managing our acquisition pipeline or portfolio, if you will. But we would like to get a little bit further along relative to the stabilization and full integration of the acquisitions and pay down some debt. So we would like to make some further progress there.

是的，也許我會再次插話，馬丁，你可以加入一些顏色。但我不會像你說的那樣說，但我認為從主題上來說，你離得不遠了。我們顯然專注於投資於我們的有機增長，投資於我們需要的工廠和設備。如果您願意的話，我們仍然非常積極地管理我們的收購渠道或投資組合。但我們希望在收購的穩定和全面整合方面取得進一步進展，並償還一些債務。因此，我們希望在這方面取得進一步的進展。

Although being at 1.7x net debt leverage ratio is a pretty good place to be. And we do see that coming down as the year progresses. So we can do strategic acquisitions and we continue to look at some and remain active there. But as you pointed out, I think our preference right now is to invest in our organic growth and pay down a little debt. But we're still keeping an important eye on really good strategic acquisitions.

儘管 1.7 倍的淨債務槓桿率是一個相當不錯的水平。隨著時間的推移，我們確實看到這種情況正在下降。因此，我們可以進行戰略收購，我們會繼續關註一些收購併保持活躍。但正如您所指出的，我認為我們現在的偏好是投資於我們的有機增長並償還一些債務。但我們仍然密切關注真正優秀的戰略收購。

(Operator Instructions) Our next question is from Bob Labick with CJS Securities.

（操作員指令）我們的下一個問題來自 CJS 證券的 Bob Labick。

Congratulations on the strong quarter and particularly the gross margin sequential rebound. Yes, I kind of wanted to start there. You gave us some nice color there on the EBITDA margin kind of expectations, goals and whatnot. Maybe just taking that back to gross margins as well. Are we kind of back to normal now? How much more room is there? Obviously, there's -- you've made a few acquisitions. So it's changed the composition. It's hard to look back historically entirely. So maybe just kind of give us a sense of where we are in this gross margin recovery and how you see that playing out over the next 6 to 18 months?

祝賀季度的強勁表現，特別是毛利率的連續反彈。是的，我有點想從那裡開始。你給了我們一些關於 EBITDA 利潤率的漂亮顏色，比如期望、目標等等。也許也只是將其帶回毛利率。我們現在恢復正常了嗎？還有多少空間？顯然，您已經進行了一些收購。所以改變了成分。很難完全回顧歷史。那麼也許只是讓我們了解一下毛利率恢復的情況以及您如何看待未來 6 到 18 個月的情況？

Absolutely, Bob. Yes, I mean, we're very pleased with the gross margin performance here in Q1 of the 31.5%. And as I mentioned, sort of that was 29.5 in the fourth quarter, and it was 28 in the third quarter. So sequentially improving and getting back. And we've talked before around sort of where is normalized gross margin for Balchem, and we often mentioned somewhere in that 32% range is sort of where it's historically been and that we want to make sure it gets back to.

當然，鮑勃。是的，我的意思是，我們對第一季度 31.5% 的毛利率表現非常滿意。正如我提到的，第四季度是 29.5，第三季度是 28。如此依次改進並恢復。我們之前討論過 Balchem 的標準化毛利率，我們經常提到 32% 的範圍是歷史上的水平，我們希望確保它回到這個水平。

I think we have taken the pricing actions to get back towards that. There were further price increases in parts of our portfolio here in Q1. But obviously, the -- the other side of that equation is what's happening to the raw material cost and other input costs. And if we see a continuation of the current trend with sort of sequential deflation we should be able to restore our margins over the coming quarters. I don't want to give an exact timing, but sort of over a couple of quarters to that 32%. But obviously, if we see sort of a plateau in the input cost, and it really doesn't deflate anymore and just stays where it are, then there'll be more actions in our end to get the margins back up there.

我認為我們已經採取了定價行動來恢復這一目標。第一季度我們的部分投資組合價格進一步上漲。但顯然，等式的另一邊是原材料成本和其他投入成本的變化。如果我們看到當前趨勢延續並出現連續通貨緊縮，我們應該能夠在未來幾個季度恢復我們的利潤。我不想給出確切的時間，但大約是幾個季度後才達到 32%。但顯然，如果我們看到投入成本處於穩定狀態，並且它確實不再收縮並且保持在原位，那麼我們最終將採取更多行動來使利潤率恢復原狀。

But right now, we sort of think that they will restore over a few quarters just based on the current trends and the actions we've already taken.

但現在，我們認為僅根據當前趨勢和我們已經採取的行動，它們將在幾個季度內恢復。

I think the last thing I would add, Bob, is that it was also nice to see that the margin improvement was not just in 1 spot. Actually, all 3 segments improved their gross margins nicely sequentially versus the fourth quarter here in the first quarter.

鮑勃，我想我要補充的最後一件事是，很高興看到利潤率的提高不僅僅只有一位。事實上，與第一季度第四季度相比，所有三個部門的毛利率都有了很好的連續改善。

Yes. No, that's great. Very encouraging, obviously, agreed there. And then you talked a bit about a difficult macro environment, et cetera. Can you -- where are we -- as it stands or where is your visibility into kind of customer inventories? Are most of those normalized? How is your demand matching end market demand? And where do you have the most visibility? And where are you still searching for a little visibility?

是的。不，那太好了。顯然，非常令人鼓舞，我同意了。然後你談到了困難的宏觀環境等等。您能否——我們現在在哪裡——或者您對客戶庫存類型的了解程度如何？其中大部分都已標準化嗎？您的需求與終端市場需求匹配程度如何？哪裡的知名度最高？您還在哪裡尋找一點知名度？

It is, as we said in our prepared remarks, it is difficult to really assess. But we do think the worst of the destocking is behind us. But there is still some of that element going on. But the worst is really behind us in Q1. And we do see some normalizing of orders as we kind of ended Q1 and headed into Q2. But there is just general uncertainty. I think our customers are unsure as to what demand scenario to plan for. And so we really feel like that's impacting kind of the order pattern in a pretty unusual and uncertain way.

正如我們在準備好的發言中所說，很難真正評估。但我們確實認為去庫存最糟糕的時期已經過去。但仍然存在一些這樣的因素。但最糟糕的情況在第一季度已經過去了。隨著第一季度的結束並進入第二季度，我們確實看到訂單出現了一些正常化。但普遍存在不確定性。我認為我們的客戶不確定要規劃什麼需求場景。所以我們真的覺得這正在以一種非常不尋常和不確定的方式影響訂單模式。

So it isn't as clear as we normally would say, it is, and we're just watching it very, very closely. But certainly, the worst of it, we believe, is behind us.

所以它並不像我們通常所說的那麼清楚，但我們只是非常非常密切地觀察它。但我們相信，最糟糕的時期肯定已經過去了。

Okay. Great. And then (inaudible) for me. Really interesting information you gave on the kind of the study with chelated iron and the benefits. And then the 16 trials you have going on as well is, I think, new information. And exciting as well. So maybe how do you take that kind of stuff? And can you talk about your marketing and you're driving away the fits of your products and where you stand now in that effort and how you expect that to play out and drive market adoption and size over time?

好的。偉大的。然後（聽不清）對我來說。您提供的關於螯合鐵的研究類型及其益處的信息非常有趣。我認為，你們正在進行的 16 項試驗也是新信息。並且也令人興奮。那麼你如何看待這種東西呢？您能否談談您的營銷以及您正在消除產品的適應性以及您目前在這方面的努力以及您期望隨著時間的推移如何發揮作用並推動市場採用和規模？

Yes. I think it's a great question, Bob. Driving awareness is a significant strategic pillar for us really in both of our businesses, Human Nutrition & Health and Animal Nutrition Health. But that -- those comments earlier were specific to Human Nutrition Health. And by and large, while we're continuing to invest in new studies and new science because we do think it helps support the overall growth. At the end of the day, we have a lot of claims. We have a lot of studies behind us, and it is about investing in marketing and driving awareness.

是的。我認為這是一個很好的問題，鮑勃。提高意識對於我們的人類營養與健康和動物營養健康業務來說都是一個重要的戰略支柱。但之前的這些評論是針對人類營養健康的。總的來說，我們繼續投資新研究和新科學，因為我們確實認為這有助於支持整體增長。歸根結底，我們有很多索賠要求。我們背後有很多研究，都是關於投資營銷和提高知名度。

Unfortunately, our products, whether it's choline or K2 or even the idea of chelated minerals is not as well known as it needs to be. And so we are in the midst of building a marketing team and capability to help drive deeper awareness. And the acquisitions of both Kappa and Bergstrom are helping from that regard because Kappa in particular, was very good at this and has done a great job of driving K2 awareness, albeit still not where we would like it to be. But driving K2 awareness up. And so we're really leveraging the skills and capabilities that came from Kappa in order to accelerate our kind of marketing prowess, if you will, to drive that.

不幸的是，我們的產品，無論是膽鹼還是 K2，甚至螯合礦物質的概念都沒有得到應有的了解。因此，我們正在建立一支營銷團隊和能力，以幫助提高更深層次的意識。從這方面來看，Kappa 和 Bergstrom 的收購都起到了幫助作用，因為 Kappa 尤其擅長這一點，並且在提高 K2 知名度方面做得非常出色，儘管還沒有達到我們希望的水平。但提高了 K2 意識。因此，我們確實在利用 Kappa 的技能和能力來加速我們的營銷能力（如果你願意的話）來推動這一目標。

But it does come down to building that marketing capability in the marketplace and driving that awareness. And it's a little bit less about needing that perfect new study or one more study. Again, we're going to continue invest in studies, but we need to build that awareness through social media, traditional advertising, targeting influencers and real advocates in the marketplace. So we're very focused on that and getting better every day, at least in part because of the talent that came to us from Kappa and Bergstrom.

但這確實取決於在市場上建立營銷能力並提高意識。而且不再需要一項完美的新研究或另一項研究。同樣，我們將繼續投資於研究，但我們需要通過社交媒體、傳統廣告、針對市場上的影響者和真正的倡導者來建立這種意識。因此，我們非常專注於此，並且每天都在進步，至少部分是因為 Kappa 和 Bergstrom 為我們帶來了人才。

There are no further questions at this time. I'd like to turn the floor back over to Ted Harris for any closing comments.

目前沒有其他問題。我想把發言權交還給特德·哈里斯，請他發表最後的評論。

Great. Thanks, Paul. And once again, thank you all very much for joining our call today. We really appreciate your support as well as your time today and look forward to reporting out our Q2 2023 results in July. In the meantime, we will be presenting at Wells Fargo's Industrial Conference in Chicago on June 13 as well as the Sidoti Virtual Small Cap Conference on June 15. So we hope to see some of you at one of those conferences or elsewhere. So thanks again for joining today. Appreciate it.

偉大的。謝謝，保羅。再次非常感謝大家今天加入我們的電話會議。我們非常感謝您的支持以及您今天抽出的時間，並期待在 7 月份報告我們 2023 年第二季度的業績。與此同時，我們將於 6 月 13 日在芝加哥舉行的富國銀行工業會議以及 6 月 15 日在 Sidoti 虛擬小型股會議上進行展示。因此，我們希望在這些會議之一或其他地方見到你們中的一些人。再次感謝您今天的加入。欣賞它。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。