DMC Global Inc (BOOM) 2024 Q3 法說會逐字稿

Greetings, and welcome to the DMC Global third-quarter earnings call.

您好，歡迎參加 DMC Global 第三季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（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, Geoff High, Vice President of Investor Relations.

現在我很高興向您介紹主持人，投資者關係副總裁 Geoff High。

Thank you.

謝謝。

You may begin.

你可以開始了。

Hello, and welcome to DMC's third-quarter conference call.

您好，歡迎參加 DMC 第三季電話會議。

Presenting today are DMC's Executive Chairman, James O'Leary; CEO, Michael Kuta; and CFO, Eric Walter.

今天出席會議的有 DMC 執行主席 James O'Leary；執行長邁克爾·庫塔；和首席財務官埃里克·沃爾特。

I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections, and assumptions as of today's date and are subject to risks and uncertainties that are disclosed in our filings with the SEC.

我想提醒大家，本次電話會議中討論的事項可能包括基於我們截至今天的估計、預測和假設的前瞻性陳述，並受到我們向 SEC 提交的文件中披露的風險和不確定性的影響。

Our business is subject to certain risks that could cause actual results to differ materially from those anticipated in our forward-looking statements.

我們的業務面臨某些風險，可能導致實際結果與我們前瞻性陳述中的預期有重大差異。

DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events.

DMC 不承擔更新因後續事件而變得不真實的前瞻性聲明的義務。

Today's earnings release and a related presentation on our third quarter performance are available on the Investors page of our website located at dmcglobal.com. A webcast replay of today's presentation will be available at our website shortly after the conclusion of this call.

今天的收益發布和有關我們第三季度業績的相關演示可在我們網站的投資者頁面上獲取，網址為 dmcglobal.com。本次電話會議結束後不久，我們的網站將提供今天簡報的網路廣播重播。

And with that, I'll now turn the call over to Jim O'Leary.

現在，我將把電話轉給吉姆·奧利裡。

Jim?

吉姆？

Thank you, Geoff, and thanks to everybody for joining us today.

謝謝傑夫，也謝謝大家今天加入我們。

I've been on the Board for a little under a year now.

我在董事會任職已經不到一年了。

And as Geoff mentioned, I was recently appointed as Executive Chairman.

正如傑夫所提到的，我最近被任命為執行主席。

My first official Board meeting was when the strategic process was announced.

我的第一次正式董事會會議是在宣布策略流程時舉行的。

So I'm very familiar with all the activity associated with it.

所以我非常熟悉與之相關的所有活動。

And over the last few months, I've had an opportunity to engage with many of our shareholders.

在過去的幾個月裡，我有機會與我們的許多股東接觸。

So I have a good sense for how you're feeling and what you're thinking.

所以我很了解你的感受和想法。

I've been associated with industrial building and manufacturing products businesses for about 40 years, most often serving as either the CEO or CFO of publicly traded companies.

我從事工業建築和製造產品業務約 40 年，最常擔任上市公司的執行長或財務長。

My most relevant experience was with a publicly traded company called Kaydon Corporation, which was a diversified industrial manufacturer that went through a number of strategic assessments similar to what DMC has been dealing with over the past 10 months.

我最相關的經驗是在一家名為 Kaydon Corporation 的上市公司工作，該公司是一家多元化的工業製造商，經歷了一系列與 DMC 在過去 10 個月中處理的策略評估類似的策略評估。

Ultimately, my Board and I concluded that a sale to a strategic peer was the best outcome in what was a highly successful transaction at the time.

最終，我和我的董事會得出的結論是，在當時非常成功的交易中，出售給戰略同行是最好的結果。

For the past 10 years, I've been a director or adviser to several publicly traded companies, including Builders FirstSource, the company's largest distributor of value-added building products and services.

在過去的 10 年裡，我一直擔任多家上市公司的董事或顧問，其中包括 Builders FirstSource，該公司最大的增值建築產品和服務經銷商。

I've also worked in the private equity space focused primarily on mid-cap industrial companies as either a director, adviser, or executive.

我也曾在私募股權領域工作過，主要專注於中型工業公司，擔任董事、顧問或高階主管。

As we announced two weeks ago, we've concluded the strategic review process on DynaEnergetics and NobelClad.

正如我們兩週前宣布的那樣，我們已經完成了對 DynaEnergetics 和 NobelClad 的策略審查流程。

The key takeaway is that we're not interested in selling excellent businesses for less than what we believe they're worth.

關鍵的一點是，我們對以低於我們認為的價值的價格出售優秀企業不感興趣。

DynaEnergetics, in particular, was challenged by very choppy and volatile conditions in the oilfield services space, and we concluded that now is not the right time to try to maximize the value of that business.

尤其是 DynaEnergetics，它受到了油田服務領域非常不穩定的挑戰，我們得出的結論是，現在不是嘗試最大化該業務價值的合適時機。

I'll now turn it over to Michael for an update on the third quarter.

我現在將其轉交給邁克爾，以獲取第三季的最新情況。

Thank you, Jim.

謝謝你，吉姆。

DMC's third-quarter sales were $152.4 million, down 11% from both the second quarter and last year's third quarter.

DMC第三季銷售額為1.524億美元，比第二季和去年第三季下降11%。

The declines reflect weakness in the US construction and energy services industries.

這些下降反映出美國建築業和能源服務業的疲軟。

Adjusted EBITDA attributable to DMC was $5.7 million or approximately 4% of sales.

DMC 調整後的 EBITDA 為 570 萬美元，約佔銷售額的 4%。

As previously reported, adjusted EBITDA reflects about $5 million in bad debt and inventory charges at DynaEnergetics and lower fixed cost absorption at both Arcadia and DynaEnergetics.

如同先前報導的，調整後的 EBITDA 反映了 DynaEnergetics 約 500 萬美元的壞帳和庫存費用，以及 Arcadia 和 DynaEnergetics 較低的固定成本吸收。

Arcadia, our architectural building products business, reported third-quarter sales of $57.8 million, down 17% sequentially and down 19% versus the third quarter last year.

我們的建築產品業務 Arcadia 報告第三季銷售額為 5,780 萬美元，比上一季下降 17%，比去年第三季下降 19%。

Arcadia's third-quarter adjusted EBITDA margin was 5.8%, down from 17.8% in the second quarter and 18.8% year over year.

阿卡迪亞第三季調整後 EBITDA 利潤率為 5.8%，低於第二季的 17.8% 和年比的 18.8%。

The decline principally reflects lower fixed cost absorption on reduced sales.

這一下降主要反映了銷售額減少導致固定成本吸收減少。

Persistently high interest rates have negatively affected sales to Arcadia's high-end luxury home market and also slowed commercial construction activity in several of Arcadia's regional markets.

持續高利率對阿卡迪亞高端豪華住宅市場的銷售產生了負面影響，並減緩了阿卡迪亞幾個區域市場的商業建築活動。

Arcadia's third quarter was also impacted by supply chain disruptions that limited product availability.

阿卡迪亞第三季也受到供應鏈中斷的影響，限制了產品的供應。

We recently named Chris Scocos as our new interim president at Arcadia.

我們最近任命 Chris Scocos 為阿卡迪亞新任臨時總裁。

He brings an extensive background in lean manufacturing, operational excellence, and improving plant productivity.

他在精益製造、卓越營運和提高工廠生產力方面擁有豐富的背景。

His immediate focus is on strengthening sourcing and supply chain functions, improving sales, inventory, and operations planning processes, and more effectively leveraging Arcadia's ERP system.

他目前的重點是加強採購和供應鏈功能，改善銷售、庫存和營運規劃流程，以及更有效地利用 Arcadia 的 ERP 系統。

We also are reviewing certain product lines that have not consistently met our profitability targets.

我們也正在審查某些未能始終達到我們獲利目標的產品線。

DynaEnergetics, our energy products business, reported third-quarter sales of $69.7 million, down 9% sequentially and down 5% versus last year's third quarter.

我們的能源產品業務 DynaEnergetics 報告第三季銷售額為 6,970 萬美元，比上一季下降 9%，與去年第三季相比下降 5%。

Dyna's adjusted EBITDA in the third quarter was roughly breakeven and adjusted EBITDA margin was just under 1%.

Dyna 第三季調整後 EBITDA 大致達到損益平衡，調整後 EBITDA 利潤率略低於 1%。

The results included the previously mentioned $5 million in bad debt and inventory charges as well as lower margin customer mix and the continued decline in US onshore well completions.

結果包括前面提到的 500 萬美元壞帳和庫存費用、利潤率較低的客戶組合以及美國陸上完井量的持續下降。

According to the EIA, completions were down 6% sequentially and were off 13% versus the third quarter last year.

根據 EIA 的數據，完工量較上季下降 6%，與去年第三季相比下降 13%。

Dyna is implementing several margin improvement initiatives and has completed the first phase of automating its DynaStage assembly operations in Blum, Texas.

Dyna 正在實施多項利潤改善計劃，並已完成位於德州布魯姆的 DynaStage 組裝業務自動化的第一階段。

Phase 2 is scheduled for completion early next year.

第二階段計劃於明年初完成。

A next-generation version of Dyna's flagship DynaStage system is also expected to enhance margins beginning in early 2025.

Dyna 旗艦產品 DynaStage 系統的下一代版本也預計將從 2025 年初開始提高利潤。

Sales at NobelClad, our composite metals business, were $24.9 million, flat versus the second quarter and down 10% year over year.

我們的複合金屬業務 NobelClad 的銷售額為 2,490 萬美元，與第二季持平，年減 10%。

Adjusted EBITDA margin improved to 23.2%, reflecting a favorable project mix.

調整後 EBITDA 利潤率提高至 23.2%，反映出有利的專案組合。

NobelClad ended the third quarter with an order backlog of $59 million versus $63.9 million at the end of the second quarter.

NobelClad 第三季末的積壓訂單為 5,900 萬美元，而第二季末為 6,390 萬美元。

Rolling 12-month bookings were $103.9 million and book-to-bill ratio was 0.96.

12 個月滾動預訂量為 1.039 億美元，訂單出貨比為 0.96。

Now I'll turn the call over to Eric for some additional financial information and a look at guidance.

現在，我將把電話轉給埃里克，以獲取一些額外的財務資訊並查看指導。

Eric?

艾瑞克？

Thanks, Michael.

謝謝，麥可。

Third-quarter SG&A was $28 million or 18.5% of net sales compared with $29 million or 16.7% of sales in the third quarter last year.

第三季銷售及管理費用為 2,800 萬美元，佔淨銷售額的 18.5%，而去年第三季為 2,900 萬美元，佔銷售額的 16.7%。

It's important to note that SG&A included approximately $3 million of bad debt charges at Dyna.

值得注意的是，SG&A 包括 Dyna 約 300 萬美元的壞帳費用。

Excluding these charges, third-quarter SG&A would have been approximately $25 million or 16.5% of net sales.

排除這些費用，第三季的銷售、管理及行政費用約為 2,500 萬美元，即淨銷售額的 16.5%。

Third-quarter adjusted net loss attributable to DMC was $9.6 million, while adjusted EPS attributable to DMC was negative $0.49. With respect to liquidity, we ended the third quarter with cash and cash equivalents of approximately $15 million.

第三季調整後歸屬於 DMC 的淨虧損為 960 萬美元，調整後歸屬於 DMC 的每股盈餘為負 0.49 美元。在流動性方面，第三季末我們的現金和現金等價物約為 1500 萬美元。

Total debt, inclusive of debt issuance costs, was approximately $74 million, and net debt was roughly $60 million.

包括債務發行成本在內的總債務約為 7,400 萬美元，淨債務約 6,000 萬美元。

Our debt to adjusted EBITDA leverage ratio was 1.18, which remains well below our covenant threshold of 3.0. On a pro forma net debt basis, after subtracting cash, our leverage ratio at the end of the third quarter was 0.96.

我們的債務與調整後 EBITDA 槓桿率為 1.18，仍遠低於我們的契約門檻 3.0。以預期淨債務計算，扣除現金後，我們第三季末的槓桿率為 0.96。

Given the significant volatility and uncertainty in our energy and construction markets, we've decided to limit our quarterly financial guidance to consolidated sales and adjusted EBITDA.

鑑於能源和建築市場的巨大波動和不確定性，我們決定將季度財務指引限制為合併銷售和調整後的 EBITDA。

For the fourth quarter, we expect consolidated sales to be in the range of $138 million to $148 million, while adjusted EBITDA attributable to DMC is expected in a range of $5 million to $8 million.

對於第四季度，我們預計合併銷售額將在 1.38 億美元至 1.48 億美元之間，而 DMC 調整後的 EBITDA 預計將在 500 萬美元至 800 萬美元之間。

The expected sequential sales decline principally reflects the challenging market conditions and seasonality at DynaEnergetics and Arcadia.

預計銷售額連續下降主要反映了 DynaEnergetics 和 Arcadia 面臨的市場條件和季節性挑戰。

The impact of high interest rates on luxury home sales and the related impact of lower fixed cost absorption in some of our factories, principally those supporting certain high-end residential products, are expected to negatively impact Arcadia's fourth-quarter performance.

高利率對豪華住宅銷售的影響以及我們一些工廠（主要是支持某些高端住宅產品的工廠）固定成本吸收降低的相關影響預計將對阿卡迪亞第四季度的業績產生負面影響。

With that, we're ready to take any questions from our analysts.

這樣，我們就準備好回答分析師的任何問題了。

Operator?

操作員？

(Operator Instructions) Stephen Gengaro, Stifel.

（操作員說明）Stephen Gengaro，Stifel。

Thanks.

謝謝。

Good evening, everybody.

大家晚上好。

So there's two things for me.

所以對我來說有兩件事。

The first is kind of big picture and the other one is more macro.

第一個是大局，另一個是比較宏觀的。

But I think at a high level, so we've seen a lot of turnovers, right, at Arcadia, at Dyna, the Board.

但我認為在高水準上，所以我們看到了很多人事變動，對吧，在阿卡迪亞、在戴納、在董事會。

And I'm trying to understand, and maybe you could help, how much of the change is related to either performance or the direction of the company?

我試著去了解，也許你可以幫忙，有多少變化與公司的表現或方向有關？

Or maybe how much of the performance is related to the leadership versus the market?

或者也許績效有多少與領導力和市場有關？

I'm trying to kind of figure out, is this market?

我想弄清楚，這是市場嗎？

Is it leadership?

是領導力嗎？

And is that why leadership is changing and/or leaving?

這就是領導層更換和/或離職的原因嗎？

Stephen, this is Jim O'Leary.

史蒂芬，這是吉姆·奧利裡。

I'll answer that.

我會回答這個問題。

Nice to meet you.

很高興見到你。

So the answer is yes, but I couldn't give you specific percentages.

所以答案是肯定的，但我無法給你具體的百分比。

Let's start with the market.

我們先從市場開始。

Absolutely, the markets played a lot to do with DynaEnergetics.

當然，市場的發揮與 DynaEnergetics 有很大關係。

We talked specifically about that as having a lot to do with why that process was halted.

我們特別討論了這一點，因為這與該過程停止的原因有很大關係。

And if you look at every one of peers, competitors, people in the space, particularly the much more noteworthy, the Schlumberger, Baker Hughes, Halliburton, frac holiday in the back half of the year.

如果你觀察一下該領域的每一位同行、競爭對手和人員，尤其是更值得注意的斯倫貝謝、貝克休斯、哈里伯頓、下半年的壓裂假期。

And if you look at this year, it really is a tale of two halves.

如果你看看今年，你會發現這確實是一個分成兩半的故事。

First half of the year, not too terrible; second half, much more challenged, reliant a lot more international business.

上半年，還不算太糟；下半年，挑戰更大，依賴更多的國際業務。

So the market for Dyna should not be a surprise to anybody.

因此，Dyna 的市場對任何人來說都不足為奇。

The market for Arcadia, and this is where -- when I said the answer is yes, is it leadership?

阿卡迪亞的市場，這就是——當我說答案是肯定的時，這就是領導力嗎？

Is it leadership from the absolute top down?

是絕對自上而下的領導嗎？

We announced a couple of weeks ago that we wrote off $142 million of goodwill.

幾週前我們宣布註銷 1.42 億美元的商譽。

That's not a rousing testament to -- we're doing a spectacular job, and we know that.

這並不是一個令人振奮的證明——我們正在做一項出色的工作，我們知道這一點。

The market conditions, though, I'll tell you, and I spend -- probably mentioned that I -- most of my time as CEO has been in industrial products companies like DMC.

不過，我會告訴你，市場狀況，我作為執行長的大部分時間都花在了像 DMC 這樣的工業產品公司。

Most of the time I spent in the last decade and probably over the last four decades is in the building space.

過去十年，或許還有過去四十年，我大部分的時間都花在了建築空間。

If you look at JELD-WEN numbers that were released today, if you look at the like-for-like businesses with Apogee, which is doing a great job on its self-help initiatives, but when you look at the businesses that are comparable to ours, no question, they're not really doing that much better, a little better.

如果你看看今天發布的 JELD-WEN 數據，如果你看看 Apogee 的同類業務，Apogee 在自助舉措方面做得很好，但是當你看看可比的業務時對我們來說，毫無疑問，他們並沒有真正做得更好，更好一點。

But the self-help initiatives on margin and some of the things that we're just starting, they are doing better on.

但在保證金方面的自助舉措以及我們剛開始的一些事情上，他們做得更好。

So I'd say the market has had a lot to do with it, but when you pay a lot for a business that hasn't performed as Arcadia has not, that's a reflection on us from the top down.

所以我想說，市場與它有很大關係，但是當你為一家沒有像阿卡迪亞那樣表現不佳的企業付出高昂代價時，這是我們自上而下的反思。

Now the leadership points that you made, the Board got it.

現在你提出的領導要點，董事會已經明白了。

We made a change at the Chairman level.

我們在主席層面做出了改變。

We've had some retirements in the past couple of months.

在過去的幾個月裡，我們有一些人退休了。

And at Arcadia, we made a change.

在阿卡迪亞，我們做出了改變。

And we put in a guy who is immensely qualified at all the things that when we talk about some of the self-help initiatives on supply chain, on lean manufacturing, on basic compactization, Chris' background, the thing that caught my eye in looking at him was he spent probably most of his career at a company called Cooper Industries and the commercial lighting division.

我們派了一個在所有方面都非常有資格的人，當我們談論供應鏈、精益製造、基本緊湊化方面的一些自助舉措時，克里斯的背景引起了我的注意。時間都在庫柏工業公司和商業照明部門度過。

And in terms of manufacturing prowess and all the things that, to be candid, a family company like Arcadia really didn't have a robust skill set at, that's the right guy to fill in a lot of those gaps right now.

坦白說，就製造能力和所有方面而言，像阿卡迪亞這樣的家族企業確實不具備強大的技能，而他正是填補目前許多空白的合適人選。

So as I said, answer is yes.

正如我所說，答案是肯定的。

Market had a lot to do with it.

市場與此有很大關係。

You combine market with the fact we paid a very robust price at probably the top of the market for Arcadia.

您將市場與我們為阿卡迪亞支付的價格（可能是市場最高價格）這一事實結合起來。

We're not hiding from that.

我們並不隱瞞這一點。

I mean that's why we wrote off $142 million of goodwill.

我的意思是，這就是我們註銷 1.42 億美元商譽的原因。

And we've begun to make the changes that I think in the prepared remarks, I mentioned, I've been on the Board for about 10 months.

我們已經開始做出改變，我在準備好的發言中提到過，我已經在董事會任職大約 10 個月了。

I've gotten to know a lot of our major shareholders.

我認識了我們許多的主要股東。

You know exactly what they're thinking, what they expect from us.

您確切地知道他們在想什麼，他們對我們的期望是什麼。

And our job is to do better, full stop.

我們的工作就是做得更好，句點。

Great.

偉大的。

No, that's great color.

不，那是很棒的顏色。

I appreciate that answer.

我很欣賞這個答案。

Thank you.

謝謝。

And the other one I had, and then I'll get back in line here.

我還有另一個，然後我會回到這裡排隊。

But the other one I had was, when we think about the fourth quarter, and I appreciate not wanting to sort of break down into segments.

但我遇到的另一個問題是，當我們想到第四季時，我很感激不想分解成幾個部分。

But the domestic pressure pumping business and budget exhaustion, holidays, et cetera, everybody seems to be suggesting that's kind of like a low double-digit decline in that business.

但國內業務的壓力和預算耗盡、假期等，似乎每個人都認為該業務出現了兩位數的低下滑。

And I'm sort of trying to triangulate here, but I would think NobelClad is flattish.

我有點想在這裡進行三角測量，但我認為 NobelClad 是平的。

So is the rest of it Arcadia?

那麼剩下的地方是阿卡迪亞嗎？

Is that how we should be thinking about it?

我們該這樣思考嗎？

Or is Dyna worse than that for other reasons I'm missing?

還是由於我錯過的其他原因，戴納比那更糟？

I think Arcadia is the wildcard.

我認為阿卡迪亞是通配符。

Maybe a narrative that we -- and when I say we, in the building space, everybody thinks high end is insulated.

也許我們的敘述——當我說我們時，在建築空間中，每個人都認為高端是絕緣的。

High end is not insulated from anything.

高端並不與任何事物隔離。

There's always a timing issue.

總是有一個時間問題。

But eventually, interest rates catch up with even the high-end custom niches.

但最終，利率甚至會趕上高端客製化利基市場。

So we've been very conservative there.

所以我們在那裡一直非常保守。

And it's led it throughout the press release, but the discussion on residential, the discussion on factory absorption -- when you're a very project-driven business, when you sell things that are very high priced and they drop off, and I think until after -- I don't want to -- I haven't heard the JELD-WEN call yet, and I know other companies I'm associated with are going to have their calls soon.

它貫穿了整個新聞稿，但關於住宅的討論，關於工廠吸收的討論——當你是一個非常項目驅動的企業時，當你出售價格非常高的東西時，它們就會下降，我認為直到之後——我不想——我還沒有聽到JELD-WEN 的電話，而且我知道與我有聯繫的其他公司很快就會接到他們的電話。

Election, interest rates, there's a lot of uncertainty, probably more than I remember in recent -- certainly in recent years, maybe in the recent decade, swirling around housing, which had a great bump from COVID, but now has been in a holding pattern for a while because of affordability.

選舉、利率，有很多不確定性，可能比我記憶中的最近還要多——當然是最近幾年，也許是最近十年，圍繞著房地產市場，房地產市場因新冠疫情而大幅上漲，但現在一直處於持有狀態由於負擔能力，模式暫時存在。

I think I'm kind of rambling on getting to the point of probably a disproportionate impact you should expect from Arcadia, and that's where we're focusing our efforts on getting it fixed.

我認為我有點漫無目的，以至於你應該期望阿卡迪亞產生不成比例的影響，而這正是我們集中精力修復它的地方。

And Stephen, Dyna is all, I'd say, following the market generally for your comments.

我想說的是，史蒂芬，戴納，總體上關注市場以獲取您的評論。

So in that range.

所以在這個範圍內。

Great.

偉大的。

No, thank you.

不，謝謝。

Thank you both.

謝謝你們倆。

That's helpful.

這很有幫助。

Gerry Sweeney, ROTH Capital Partners LLC.

斯威尼 (Gerry Sweeney)，羅仕資本合夥人有限責任公司。

Good afternoon, everyone.

大家下午好。

Thanks for talking my call.

感謝您接聽我的電話。

I was hoping maybe you could discuss a little bit more about the work that you want to do at Arcadia to improve operations.

我希望您能多討論一下您想在阿卡迪亞開展的改善營運的工作。

And then as maybe a subset to that question, are the systems in place to manage that?

然後，也許這個問題的一個子集是，是否有適當的系統來管理這個問題？

You talked about the ERP explicitly leveraging that.

您談到 ERP 明確利用了這一點。

But just curious if all the systems are in place and then to -- go into a little bit more detail on maybe where some of the low-hanging fruit is or what have you?

但只是好奇是否所有系統都已就位，然後 - 更詳細地了解一些容易實現的目標或您擁有什麼？

And what's the path forward on that front?

這方面的前進道路是什麼？

I'm going to turn it over to Mike on some of the specific initiatives that he and Chris have been initiating, accelerating, and I think pushing forward with the right skill sets for really the first time since the acquisition.

我將把它交給麥克，討論他和克里斯一直在發起和加速的一些具體舉措，我認為自收購以來，這是第一次真正以正確的技能來推進。

A macro comment, which I think, again, we might have underestimated and certainly contributed to the goodwill write-off, we bought a family business.

宏觀評論，我認為，我們可能再次低估了這一點，並且肯定導致了商譽沖銷，我們購買了一家家族企業。

We bought a family business that had excellent commercial people.

我們買了一家擁有優秀商業人士的家族企業。

They understood pricing; they understood their markets.

他們了解定價；他們了解自己的市場。

They had the right titles, the right org-charts, the right people that at first blush look like they'd be able to handle the amount of change that comes with being a public company.

他們擁有正確的頭銜、正確的組織結構圖和正確的人員，乍一看，他們似乎能夠應對作為上市公司所帶來的巨大變化。

And the digestion issues around ERP, putting in compliance around being a public company, making sure you've got not just people who have the title VP of supply chain, but actually know what that means, particularly in a post-COVID environment.

圍繞 ERP 的消化問題，作為一家上市公司的合規性，確保你不僅擁有擁有供應鏈副總裁頭銜的人，而且真正知道這意味著什麼，特別是在後新冠疫情環境下。

We underestimated the challenges there.

我們低估了那裡的挑戰。

And a couple of -- we took a few calls after our last press release.

還有一些——我們在上次新聞稿發布後接到了幾通電話。

And to me, these are things that are simple to diagnose, easy to spot, not really wildly difficult to fix if you have people with the right skill set but take time.

對我來說，這些問題很容易診斷，很容易發現，如果你擁有具備適當技能的人員，但需要時間，那麼修復起來並不是非常困難。

And putting the ERP system on with the aggressiveness of the implementation, dealing with upgrading people happens with every family company acquisition I've ever seen.

我見過的每一家家族企業收購中都會積極實施 ERP 系統，並進行人員升級。

And really dealing with just the robustness of the systems and the people, exactly what you think in a family company, the answer was no, and that led to the write-off.

真正處理系統和人員的穩健性，正如您在家族企業中所想的那樣，答案是否定的，這導致了沖銷。

We've spotted, diagnosed, have fixes in for all of them.

我們已經發現、診斷並修復了所有這些問題。

It takes a little bit of time.

這需要一點時間。

You'd feel a lot better if it was at a time when election is behind us, whichever party puts in place is going to hope be -- put a little bit more wind in the sails of the housing market more broadly and construction.

如果是在選舉結束的時候，你會感覺好多了，無論哪個黨派都希望——為更廣泛的房地產市場和建築業帶來更多的動力。

And interest rates being a little bit lower would help the high-end residential market.

利率稍微低一點將有助於高端住宅市場。

But that said, while it would be nice to have the wind in our sails, we recognize we don't.

但話雖如此，雖然我們的帆上有風就好了，但我們承認我們沒有。

So we've got initiatives underway that are very specifically targeted to some of the things we probably could have been a little bit more respectful from the get go on.

因此，我們正在採取一些舉措，這些舉措非常具體地針對一些我們可能從一開始就應該更加尊重的事情。

Mike, do you want to talk about some of the specific initiatives?

麥克，您想談談一些具體舉措嗎？

Yeah, Gerry.

是的，格里。

So a couple of things that we're working on with the team related to supply chain and sourcing, so we can do a better job on both supply chain sourcing and planning as well as S&OP processes.

因此，我們正在與團隊合作進行一些與供應鏈和採購相關的工作，以便我們可以在供應鏈採購和規劃以及 S&OP 流程方面做得更好。

So one of the gaps we have there is demand planning and knowing what we need when we need it.

因此，我們的差距之一是需求規劃以及在需要時了解我們需要什麼。

So that was some of my comments around the supply chain disruption.

這就是我對供應鏈中斷的一些評論。

So we've got programs we're putting in place there working on.

因此，我們正在製定一些計劃。

The other thing is there's some -- the other item in the back end of our business is there's some improvements we can certainly make in our finishing operations.

另一件事是，我們業務後端的另一件事是，我們當然可以在精加工作業中做出一些改進。

And a lot of that gets to -- you get your supply chain debottlenecked, and you got to get scheduling right and finishing up.

其中很多都是為了——你可以消除供應鏈的瓶頸，你必須正確安排並完成工作。

So a lot of work we're doing on that to improve lead times on time and in full deliveries to customers, making sure we've got shelf stock with product -- making progress, but a ways to go.

因此，我們在這方面做了很多工作，以縮短按時交貨和向客戶全面交付的時間，確保我們有充足的產品庫存——取得了進展，但還有很長的路要走。

So there's good things happening, but it's going to take some time, as Jim mentioned, to sort that out.

因此，好事正在發生，但正如吉姆所說，需要一些時間來解決這個問題。

Got you.

明白你了。

And sort of maybe as a follow-up.

也許可以作為後續行動。

How much of the headwind is maybe high-end residential being weak versus maybe this bread-and-butter commercial business, I'm not sure exactly where that stands versus even some operational blocking and tackling you had to sort of fix that.

有多少逆風可能是高端住宅的疲軟與可能是這種麵包和黃油的商業業務相比，我不確定到底在哪裡，甚至一些運營障礙和解決方案你必須解決這個問題。

I shouldn't guess, but I will, and then I'll let Mike correct me.

我不應該猜測，但我會猜測，然後我會讓麥克糾正我。

The absorption issues, again, very high-margin, high-priced product, manufactured in batches, and discrete factories.

吸收問題再次是利潤率非常高、價格高、大量生產和離散工廠的產品。

That has a lot to do with the shortfall.

這與不足有很大關係。

That comes back quickly or we take other steps to remediate it.

這種情況很快就會恢復，或者我們會採取其他措施來補救。

It has a disproportionate impact on EBITDA and gross margin.

它對 EBITDA 和毛利率產生不成比例的影響。

And when you look at the contribution margins from that type of product, that really tells the story.

當您查看該類型產品的邊際貢獻時，您會發現這確實說明了問題。

And please don't ask what the contribution margins are.

請不要問邊際貢獻是多少。

We don't get into the habit of giving that out.

我們沒有養成分發出去的習慣。

But disproportionately, it's probably the high-end residential piece.

但不成比例的是，它可能是高端住宅。

Mike?

麥克風？

Jim, I mean, you covered it exactly as it is.

吉姆，我的意思是，你完全按原樣報道了它。

Yeah.

是的。

Absorption, given the factory footprint and where we've got product coming from and at what price points, absorption had a disproportionate impact on this quarter's story in particular and our guidance, by the way.

吸收，考慮到工廠的佔地面積以及我們從哪裡獲得產品以及價格點，吸收對本季度的故事和我們的指導產生了不成比例的影響。

One more per se on the high-end residential.

高端住宅本身又是一處。

Just curious, maybe in the past, and I could be wrong on this, I was even under the impression maybe there wasn't as much marketing or effort put behind building the backlog in the high-end residential.

只是好奇，也許在過去，我在這一點上可能是錯的，我什至覺得也許沒有那麼多的營銷或努力來建立高端住宅的積壓。

Obviously, I do get higher interest rates or higher interest rates, right?

顯然，我確實得到了更高的利率或更高的利率，對嗎？

There's a cost there.

這是有代價的。

But how much is that -- is my viewpoint potentially correct or some truth or validity to it that it's not only interest rates, but maybe even some focus on sales, marketing, and growing that business?

但我的觀點有多少可能是正確的，或者是否有一定的真實性或有效性，即這不僅涉及利率，甚至可能還關注銷售、行銷和業務發展？

Yeah, Gerry, you're on the right thread.

是的，格里，你走對了。

I think what happened to us several years ago is we built up a backlog in the 18-month range.

我認為幾年前發生在我們身上的事情是我們積壓了 18 個月的訂單。

And on the high-end residential, you got to be in a 16- to 20-week lead time.

對於高端住宅，您必須有 16 到 20 週的準備時間。

So what happened, and we've talked about this before, is that until you take that backlog from 18 months to 16 to 20 weeks, customers are -- they're interested only in getting the orders they have, sitting out there and getting those fulfilled and less interested in helping to build a backlog through that process.

所以發生的事情，我們之前已經討論過，在你把積壓訂單從 18 個月縮短到 16 到 20 週之前，客戶——他們只對獲得他們的訂單感興趣，坐在那裡並獲得訂單。成就感但不太願意幫助透過這個流程建立積壓工作的人。

So we're definitely in a valley from that standpoint, and it's reflected, as Jim said, in our absorption on residential.

因此，從這個角度來看，我們肯定處於低谷，正如吉姆所說，這反映在我們對住宅的專注上。

And Gerry, in a family business, and I work with a lot of sponsors, I've -- in past lives, bought a lot of family businesses.

格里，在一家家族企業中，我與許多贊助商合作，我在前世購買了許多家族企業。

There's a lot of things that look like they function absolutely pristinely until you stress test them.

有很多東西在你對它們進行壓力測試之前看起來它們的功能絕對是原始的。

And what Mike just described, when you start to have a hole in your order backlog, when you're not really -- when customer service [isn't] aging, getting the right dates, there's a lot of really basic stuff that, as I said, easy to spot.

麥克剛才描述的，當你的訂單積壓開始出現漏洞時，當你不是真的——當客戶服務沒有老化，得到正確的日期時，有很多非常基本的東西，正如我所說，很容易發現。

I wouldn't say quick fixes, but easy fixes require the right people.

我不會說快速修復，但簡單的修復需要合適的人。

Some of these things, I think they would have caught us anyway because of the interest rate environment.

我認為，由於利率環境，其中一些事情無論如何都會困擾我們。

And remember, our business is really, really project-driven.

請記住，我們的業務確實是專案驅動的。

And every business that I see in the building space from the other things I do, if you're project-driven right now, you've got really tough times.

從我所做的其他事情來看，我在建築空間中看到的每一項業務，如果你現在是由專案驅動的，那麼你的日子真的很艱難。

I don't know.

我不知道。

Again, I haven't seen JELD-WENs.

再說一遍，我還沒見過 JELD-WEN。

I know a couple of the builders are coming out.

我知道有幾個建築商要出來了。

But even at the very high end, if you think Toll Brothers as a high-end builder, even they're buying down interest rates.

但即使在非常高端的領域，如果你認為 Toll Brothers 是一家高端建築商，即使他們也在降低利率。

And the areas of building that are doing well, tend to be where builders can buy down rates.

表現良好的建築領域往往是建築商可以降低利率的地方。

You've got robust commercial activity, which is a lot less robust than it was when we bought the company.

你的商業活動很活躍，但比我們收購該公司時的活力弱得多。

And that, coupled with the visibility in the systems to see where you've got gaps in production, the project business is dropping off, are all things we've got to improve.

再加上系統中的可見性，可以看到生產上存在哪些差距，專案業務正在下降，這些都是我們必須改進的事情。

It won't happen overnight, but we've got them diagnosed and we're bringing in the right people.

這不會在一夜之間發生，但我們已經對他們進行了診斷，並且正在引進合適的人選。

Got it.

知道了。

That's it for me.

對我來說就是這樣。

I do appreciate the candidness.

我確實很欣賞你的坦誠。

Thank you.

謝謝。

Ken Newman, KeyBanc Capital Markets.

肯紐曼，KeyBanc 資本市場。

Good evening, guys.

晚上好，夥計們。

Thanks for taking the question.

感謝您提出問題。

Maybe just to start off, could you just provide a little bit of color just on how the quarter progressed in Arcadia?

也許首先，您能否提供一些有關阿卡迪亞本季進展的資訊？

How quickly did the demand start to start to fall off there?

那裡的需求多快開始下降？

Was this really kind of back end loaded in September?

這真的是九月加載的後端嗎？

And then it would be helpful if you could give us any sense on how the businesses are trending through October relative to September end.

如果您能讓我們了解 10 月相對於 9 月底的業務趨勢，將會很有幫助。

Yeah.

是的。

So Ken, I think the business through this last quarter, I think it's pretty fairly level in terms of the demand, the bookings, and what we saw come across in shipments.

肯，我認為上個季度的業務在需求、預訂以及我們所看到的發貨情況方面都處於相當水平。

So I'm not ready to talk details about Q4, but it was -- we started to see that come across in the third quarter.

所以我還沒準備好談論第四季的細節，但我們開始在第三季看到這種情況。

Okay.

好的。

Maybe switching over to the restructuring actions you're taking, one, I thought there was already an ERP implementation already kind of in place at Arcadia.

也許轉向你正在採取的重組行動，第一，我認為阿卡迪亞已經實施了 ERP。

So when you talk about the sourcing initiatives, what's kind of involved with that?

那麼，當您談論採購計劃時，涉及哪些內容？

And is there any way to kind of size the cash cost that's going to be associated with some of these restructuring actions you're taking?

有沒有什麼方法可以確定與您正在採取的一些重組行動相關的現金成本？

And how long do you expect that payback to be?

您預計回報需要多長時間？

So these are additions.

所以這些都是補充。

We haven't talked specifically about any restructuring, but certainly, everything is on the table when you have results like we've had, but there's nothing that we're specifically announcing.

我們還沒有具體討論任何重組，但當然，當你得到像我們這樣的結果時，一切都擺在桌面上，但我們沒有特別宣布任何內容。

All the additions are top grading, upgrading people.

所有新增的都是頂級的，升級人員。

You're 100% correct.

你是100%正確的。

We've talked about ERP in the past, but it certainly could have gone smoother and really holding people accountable and getting some additional resources are in.

我們過去曾討論過 ERP，但它肯定可以進展得更順利，並且真正讓人們承擔責任並獲得一些額外的資源。

The cash cost, it's kind of part of doing business when you're top grading and adding people.

當你進行最高評級和增加人員時，現金成本是做生意的一部分。

Like in the case of Chris, Chris is replacing a guy that we let go who had a comparable salary.

就像克里斯的例子一樣，克里斯正在取代我們解僱的一個薪水相當的人。

So it's not a huge incremental cost that we'd put a payback on.

因此，這並不是我們需要收回的巨大增量成本。

Maybe I'll ask one more.

也許我會再問一個。

Obviously, we just put in some incremental paint capacity here in this past year.

顯然，我們在過去的一年裡剛剛增加了一些油漆產能。

And I'm curious if you think -- obviously, not well timed relative to the market that we were seeing.

我很好奇你是否認為——顯然，相對於我們所看到的市場來說，時機不太好。

But is there a way to kind of help size how much of that overcapacity was potentially an impact in this quarter?

但有沒有一種方法可以幫助確定產能過剩對本季可能產生的影響有多大？

And what are the first steps to try to kind of right-size the revenue planning process from here?

從這裡開始嘗試調整收入規劃流程的第一步是什麼？

Yes.

是的。

The paint capacity had nothing to do with the overcapacity.

塗料產能與產能過剩無關。

That was all in the residential business, where, again, specific high-price, high-margin projects that are done in batch, all the absorption issues or most of the absorption issues were there.

這就是住宅業務，同樣，批量完成的特定高價格、高利潤項目，所有吸收問題或大部分吸收問題都存在。

The paint capacity, to the best of my knowledge, had nothing to do with it.

據我所知，油漆能力與此無關。

Mike?

麥克風？

Yes.

是的。

And what we did when we added a bit of capacity, it was through industrial engineering, so the industrial engineering isn't creating absorption or capacity challenges at this time.

當我們增加一點產能時，我們所做的是透過工業工程，所以工業工程目前並沒有造成吸收或產能挑戰。

Got it.

知道了。

Okay.

好的。

That's very helpful.

這非常有幫助。

I appreciate it.

我很感激。

Thank you.

謝謝。

And we have reached the end of the question-and-answer session.

我們的問答環節已經結束了。

I would now like to turn the floor back to Michael Kuta for closing remarks.

現在我想請邁克爾·庫塔（Michael Kuta）發表閉幕詞。

Thanks for joining, everyone.

感謝大家的加入。

Thanks for joining the call today, everyone.

感謝大家今天加入電話會議。

Look forward to talking to you next quarter.

期待下個季度與您交談。

And just add one thing, Stephen asked a really good question at the beginning and pointed but deservedly pointed.

再補充一件事，史蒂芬一開始就提出了一個非常好的問題，並指出了當之無愧的指出。

We get the fact that not just the market, the goodwill issue is our issue.

我們知道，不只是市場問題，商譽問題也是我們的問題。

We own it.

我們擁有它。

Some of the turnover that Stephen appropriately pointed out is because of issues that we've taken ownership of.

史蒂芬恰當地指出的一些人員流動是由於我們已經掌控的問題造成的。

We've listened to our shareholders.

我們聽取了股東的意見。

We're taking action on and not hiding from, but obviously not proud of.

我們正在採取行動，而不是逃避，但顯然並不為此感到自豪。

But we're going to get these things fixed.

但我們會解決這些問題。

We know we're here to get the share price up and to work for you guys, and that's what we're committed to doing every day.

我們知道我們來這裡是為了提高股價並為你們工作，這就是我們每天致力於做的事情。

So thanks for your patience.

感謝您的耐心等待。

And thank you.

謝謝你。

This concludes today's conference.

今天的會議到此結束。

You may disconnect your lines at this time.

此時您可以斷開線路。

Thank you for your participation.

感謝您的參與。