Babcock & Wilcox Enterprises Inc (BW) 2023 Q3 法說會逐字稿

Good evening. My name is Hannah, and I will be your conference operator today. At this time, I would like to welcome everyone to the conference call. (Operator Instructions) Thank you.

晚安.我叫漢娜，今天我將擔任你們的會議操作員。此時，我謹歡迎大家來參加電話會議。 （操作員說明）謝謝。

Sharyn, you may begin your conference call.

Sharyn，您可以開始電話會議了。

Thank you, Hannah. And thanks to everyone for joining us on Babcock & Wilcox Enterprises' Third Quarter 2023 Earnings Conference Call. I'm Sharyn Brooks, Director of Communications. Joining the call today are Kenny Young, B&W Chairman and Chief Executive Officer, and Lou Salamone, Chief Financial Officer, to discuss our third-quarter results.

謝謝你，漢娜。感謝大家參加 Babcock & Wilcox Enterprises 2023 年第三季財報電話會議。我是莎琳‧布魯克斯，傳播總監。 B&W 董事長兼執行長 Kenny Young 和財務長 Lou Salamone 今天加入電話會議，討論我們的第三季業績。

During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those set forth in our Safe Harbor provision for forward-looking statements that can be found at the end of our earnings press release, and also in our Form 10-Q that will be filed today and our Form 10-K that is on file with the SEC and provide further detail about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward-looking statement.

在本次電話會議中，我們所做的某些陳述將具有前瞻性。這些陳述受到風險和不確定性的影響，包括我們的前瞻性陳述的安全港條款中規定的風險和不確定性，這些風險和不確定性可以在我們的收益新聞稿末尾找到，也可以在我們今天提交的10-Q 表格中找到。我們在 SEC 備案的 10-K 表格提供了有關我們業務相關風險的更多詳細資訊。此外，除非法律要求，我們不承擔更新任何前瞻性聲明的義務。

We also provide non-GAAP information regarding certain of our historical and targeted results to supplement the results provided in accordance with GAAP. This information should not be considered superior to or as a substitute for the comparable GAAP measures. A reconciliation of historical non-GAAP measures can be found in our third quarter earnings release published this afternoon and in our company overview presentation that will be filed on Form 8-K this afternoon and posted on the Investor Relations section of our website at babcock.com.

我們還提供有關我們的某些歷史和目標結果的非 GAAP 信息，以補充根據 GAAP 提供的結果。該資訊不應被視為優於或替代可比較的 GAAP 衡量標準。歷史非公認會計原則指標的調節可以在我們今天下午發布的第三季度收益報告和我們的公司概況介紹中找到，該介紹將在今天下午以8-K 表格形式提交，並發佈在我們網站babcock 的投資者關係部分。 com.

I will now turn the call over to Kenny.

我現在將把電話轉給肯尼。

Thanks, Sharyn. And thanks to everyone for joining us today. Well as you can tell by our earnings release, it's been a busy third quarter for Babcock & Wilcox.

謝謝，莎琳。感謝大家今天加入我們。正如您從我們的財報發布中可以看出的那樣，對於 Babcock & Wilcox 來說，第三季是忙碌的。

I'd like to start the call today by first reviewing our third quarter performance on a continued operations basis accounting for the announced reclassification of our solar business, as well as the latest advancements across our BrightLoop and ClimateBright initiatives. I'll also discuss our announced strategic business realignment and the rationale behind that decision as well as details related to our 2023 and 2024 financial targets, which are based primarily on the strong performance of our aftermarket parts and services businesses, before turning the call over to Lou.

在今天的電話會議上，我想先回顧一下我們第三季的持續營運業績，其中包括已宣布的太陽能業務重新分類，以及 BrightLoop 和 ClimateBright 計劃的最新進展。在轉交電話之前，我還將討論我們宣布的戰略業務調整和該決定背後的理由，以及與我們的2023 年和2024 年財務目標相關的詳細信息，這些目標主要基於我們的售後零件和服務業務的強勁表現給盧。

Let me start by highlighting the broad-based activities that drove revenue growth across all business segments during the quarter. Revenue for the third quarter was $239 million, which is 13% improvement compared to the prior year and our third consecutive quarter of revenue expansion on a year-over-year basis. Our top-line improvement was led by thermal revenues that increased approximately 17% when compared to the third quarter of 2022 followed by renewable more specifically our renewable services as well as environmental revenues increasing 11% and 4% respectively.

首先，我要重點強調本季推動所有業務部門營收成長的廣泛活動。第三季營收為 2.39 億美元，比上年成長 13%，也是我們連續第三個季度營收年增。我們的營收成長主要得益於熱力收入，與2022 年第三季相比成長了約17%，其次是再生能源，更具體地說，我們的再生服務和環境收入分別成長了11% 和4%。

Our aftermarket parts and services business in thermal and renewable typically our higher margin businesses continue to perform above our internal expectations. Consolidated adjusted EBITDA from continuing operations for the quarter was also impressive at $20 million, an improvement of $7 million or 54% when compared to the same period last year. This is inclusive of roughly $2 million in expenses for BrightLoop and ClimateBright in Q3 2023.

我們的熱能和再生能源售後零件和服務業務通常是我們的利潤率較高的業務，其表現持續高於我們的內部預期。本季來自持續經營業務的綜合調整後 EBITDA 也令人印象深刻，達到 2,000 萬美元，與去年同期相比增加了 700 萬美元，即 54%。其中包括 BrightLoop 和 ClimateBright 在 2023 年第三季的約 200 萬美元費用。

While product mix was a large factor in the adjusted EBITDA performance for the quarter attributable to the higher margin nature of our aftermarket businesses, we also demonstrated strong execution on increased volumes of projects within our environmental segment. While continued operation, bookings, and backlog were mostly flat year-over-year. This is largely attributable to timing of new bookings, as negotiations on a few larger opportunities are taking slightly longer than anticipated. Some of these delays are positive due to increased scope for B&W aftermarket services, as many utilities and large energy companies are reevaluating the timing of newbuild projects and deferring to upgrades due to higher interest rates and other geopolitical factors.

雖然由於我們的售後市場業務的利潤率較高，產品組合是本季調整後 EBITDA 業績的一個重要因素，但我們在環保領域項目數量增加方面也表現出了強勁的執行力。雖然持續運營，但預訂量和積壓訂單大多與去年同期持平。這主要歸因於新預訂的時間安排，因為一些較大機會的談判時間略長於預期。其中一些延遲是積極的，因為 B&W 售後服務範圍擴大，許多公用事業和大型能源公司正在重新評估新建項目的時間安排，並由於利率上升和其他地緣政治因素而推遲升級。

Our outlook for near term booking opportunities remains robust positioning as well to achieve updated backlog growth in a range of $550 million to $650 million by year-end 2023 based on continued operations, not including our reclassified assets. In addition, based on our improved performance of thermal parts and services and our global reach in providing clean energy technologies, we remain confident in achieving our revised full year adjusted EBITDA target from continuing operations of $85 million to $90 million in 2023 when excluding BrightLoop and ClimateBright expenses.

我們對近期預訂機會的展望仍然強勁，並根據持續營運（不包括我們重新分類的資產），到 2023 年底實現更新的積壓訂單增長 5.5 億至 6.5 億美元。此外，基於我們改進的熱部件和服務性能以及我們在提供清潔能源技術方面的全球影響力，我們仍然有信心在2023 年實現修訂後的全年調整後EBITDA 目標，從持續經營業務的8500 萬美元增至9,000 萬美元（不含BrightLoop 和ClimateBright 費用。

Transitioning to BrightLoop and ClimateBright commercial activities, we are pleased to provide several updates related to our hydrogen generation technology and project portfolio. As previously mentioned, we are developing a small BrightLoop hydrogen production plant in Massillon, Ohio, very near our headquarters here in Akron. We are close to signing a definitive agreement for hydrogen offtake at this location for up to 3 tonnes per day of hydrogen production for the next 10 years. We are also excited to announce we have a letter of intent for project level financing, and we have signed a lease agreement and are moving forward with construction to produce hydrogen by the end of 2024 or very shortly or early into 2025.

轉向 BrightLoop 和 ClimateBright 商業活動，我們很高興提供與我們的氫氣生產技術和專案組合相關的一些更新。如前所述，我們正在俄亥俄州馬西隆開發一座小型 BrightLoop 氫氣工廠，非常靠近我們位於阿克倫的總部。我們即將簽署一份最終協議，在未來 10 年內，在該地點每天生產最多 3 噸氫氣。我們也很高興地宣布，我們已經簽署了一份專案級融資意向書，並且已經簽署了租賃協議，並正在推進建設工作，以在 2024 年底或 2025 年不久或年初之前生產氫氣。

With regard to our medium and larger platforms, we are also excited to announce a collaboration with Air Products, which represents a key step forward in our development of net negative carbon intensity hydrogen production facility in Louisiana utilizing BrightLoop technology. More specifically, we have signed a memorandum of understanding with their products to enter into a definitive offtake agreement for up to 200 tonnes of carbon negative hydrogen per day, as well as the CO2 produced at the facility, with the initial production facility expected to be operational in late 2026. This comes on the heels of our previously announced offtake agreement with General Hydrogen to acquire both hydrogen and CO2 from our medium-sized biomass BrightLoop platforms. Both of these agreements come with 10-year length terms.

關於我們的中型和大型平台，我們也很高興地宣布與空氣產品公司合作，這代表著我們在路易斯安那州利用 BrightLoop 技術開發淨負碳強度氫氣設施方面向前邁出了關鍵一步。更具體地說，我們已經與他們的產品簽署了一份諒解備忘錄，簽署了一份最終承購協議，每天生產最多 200 噸碳負氫，以及該設施生產的二氧化碳，最初的生產設施預計將在該專案將於2026 年底投入營運。此前，我們曾宣布與General Hydrogen 簽訂承購協議，從我們的中型生物質BrightLoop 平台獲取氫氣和二氧化碳。這兩項協議的期限均為 10 年。

Based on the trend the traction we have received to date is become clear that commercial solutions that address carbon neutral targets have become imperative. Importantly in parallel, we continue progressing in Wyoming and within recently announced hydrogen hubs, especially in West Virginia. This includes permitting fuel commitments and collaboration offtake land allocations as well as project funding.

根據這一趨勢，我們迄今為止收到的關注已經變得很明顯，即解決碳中和目標的商業解決方案已勢在必行。重要的是，同時，我們繼續在懷俄明州和最近宣布的氫中心內取得進展，特別是在西維吉尼亞州。這包括允許燃料承諾和合作承購土地分配以及專案資金。

While our recent developments across BrightLoop projects continued to progress we're also pleased to announce a meaningful update to our Board of Directors. Effective today, Dr. Naomi Boness will join our Board of Directors bringing an extensive expertise within the energy sector, particularly in hydrogen generation and carbon capture. We welcome Naomi to the Board and are confident her deep industry experience will prove valuable as we continue to accelerate our hydrogen strategy going forward.

在 BrightLoop 專案近期不斷取得進展的同時，我們也很高興地向董事會宣布一項有意義的更新。即日起，Naomi Boness 博士將加入我們的董事會，帶來能源領域的廣泛專業知識，特別是在氫氣和碳捕獲方面。我們歡迎 Naomi 加入董事會，並相信她深厚的行業經驗將在我們繼續加速推進氫戰略的過程中發揮重要作用。

To reiterate our updated pipeline when excluding the reclassified operations is over $8.5 billion across all three segments, with approximately $1 billion in BrightLoop opportunities. We believe this puts us on a pathway to reach $1 billion in bookings by 2028, with a combination of small, medium, and large projects. We feel confident that could lead to $1 billion in revenues from BrightLoop by 2030 and beyond, and would still only represent 1% of the market share of total hydrogen spin by 2030.

重申一下，我們更新的管道（不包括重新分類的業務）在所有三個細分市場中的價值超過 85 億美元，其中 BrightLoop 機會約為 10 億美元。我們相信，透過小型、中型和大型專案的組合，我們的預訂量將在 2028 年達到 10 億美元。我們相信，到 2030 年及以後，BrightLoop 的營收將達到 10 億美元，但到 2030 年仍僅佔氫旋轉總市場份額的 1%。

I'd now like to focus on the announced strategic business realignment, including what it means for the company going forward, and its immediate impact to our current operations. In response to today's market conditions, which include higher interest rate costs and reduce their delayed growth capital expenditures by our customers, we see growth a growing global trend and extending the operational lifespan of existing power and industrial generation facilities. This presents us with an opportunity to shift our focus to the more predictable revenue streams generated from our aftermarket businesses. We plan to utilize these cash flows to strengthen our balance sheet and reduce our overall debt while we are also evaluating strategic aftermarket alternatives related to non-strategic assets.

我現在想專注於已宣布的策略業務調整，包括這對公司未來的意義，以及它對我們目前營運的直接影響。為了因應當今的市場狀況，包括更高的利率成本和減少客戶延遲成長的資本支出，我們看到成長成為全球趨勢，並延長了現有電力和工業發電設施的營運壽命。這為我們提供了一個機會，可以將我們的注意力轉移到售後業務產生的更可預測的收入流上。我們計劃利用這些現金流量來加強我們的資產負債表並減少整體債務，同時我們也正在評估與非策略性資產相關的策略性售後市場替代方案。

Further, we expect to realize up to $30 million in annualized cost savings primarily through reduction of the high overhead associated with seeking multiple newbuild projects. Our heightened focus on producing more predictable cash flow generation is consistent with our approach to provide long term profitable growth for the company and its shareholders, ultimately driving our decision to streamline our efforts to concentrate on aftermarket businesses and capitalize on higher margin parts and service opportunities.

此外，我們預計主要透過減少與尋求多個新建專案相關的高額管理費用，實現高達 3,000 萬美元的年度成本節省。我們高度重視產生更可預測的現金流，這與我們為公司及其股東提供長期盈利增長的方法是一致的，最終促使我們決定精簡我們的工作，專注於售後業務並利用利潤率更高的零件和服務機會。

In order to ensure a successful realignment of our updated strategy, our focus is on the following. One, a greater emphasis on higher margin aftermarket parts and services across all three segments, while further reducing overhead costs associated with certain large newbuild project opportunities. Reducing our seniors secure letters of credit facility by up to $20 million by the end of fiscal year 2024. Refinancing our existing senior secured credit facility to reduce our interest expense by up to $5 million. And just today announcing a commitment for $150 million in refinancing bolstering cash flow generation and strengthening the balance sheet and utilizing federal, state, and project level financing to accelerate the deployment of our BrightLoop and ClimateBright technologies.

為了確保我們更新策略的成功調整，我們的重點如下。第一，更重視所有三個細分市場的更高利潤的售後零件和服務，同時進一步降低與某些大型新建專案機會相關的管理成本。到 2024 財年末，將我們的優先擔保信用證融資減少最多 2,000 萬美元。對我們現有的優先擔保信貸融資進行再融資，以減少最多 500 萬美元的利息支出。就在今天，我們宣布承諾提供 1.5 億美元的再融資，以促進現金流產生和強化資產負債表，並利用聯邦、州和專案層級的融資來加速 BrightLoop 和 ClimateBright 技術的部署。

While we recognize the long term growth potential for solar from both the community and utility standpoint, there were several key factors that our management team and Board considered when evaluating what steps the company would take regarding the pathway for continuing growth. As part of this evaluation process, we have decided to reclassify our solar business out of continuing operations. This is primarily due to the historical projects, the higher risks, and the margin profiles.

雖然我們從社區和公用事業的角度認識到太陽能的長期成長潛力，但我們的管理團隊和董事會在評估公司將採取哪些步驟來實現持續成長時考慮了幾個關鍵因素。作為評估過程的一部分，我們決定將我們的太陽能業務從持續營運中重新分類。這主要是由於歷史項目、較高的風險和利潤狀況。

Looking ahead to next year, our focus on promoting future growth aligns with the sustained demand we observe across all segments, paving the way for improved performance in 2024 with our announced adjusted EBITDA target range of $100 million to $110 million when excluding BrightLoop and ClimateBright. Importantly, given our strategic business realignment, we now have increased visibility and confidence in our outlook as a significant portion of our targeted adjusted EBITDA will be generated from existing backlog with less reliance on large projects.

展望明年，我們對促進未來成長的重點與我們觀察到的所有細分市場的持續需求相一致，為2024 年業績的改善鋪平了道路，我們宣布的調整後EBITDA 目標範圍為1 億至1.1 億美元（不含BrightLoop 和ClimateBright）。重要的是，鑑於我們的策略性業務調整，我們現在對前景的可見性和信心有所提高，因為我們的目標調整後 EBITDA 的很大一部分將來自現有積壓訂單，減少對大型專案的依賴。

I'll now turn the call over to Lou to discuss the financial details of the third quarter, Lou?

我現在將電話轉給Lou，討論第三季的財務細節，Lou？

Thanks, Kenny. I'm pleased to review our third-quarter results and our recent commitment for the refinancing of our senior credit facility. Further details of which can be found on our 10-Q that is on file with the SEC. I'd also like to call your attention to the fact that I will be referring to amounts of our continuing operations.

謝謝，肯尼。我很高興回顧我們的第三季業績以及我們最近對高級信貸安排再融資的承諾。有關詳細信息，請參閱我們向 SEC 備案的 10-Q。我還想提請您注意，我將指的是我們持續營運的金額。

Our third quarter consolidated revenues were $239.4 million, which is a 13% improvement compared to the third quarter of 2022. This is primarily attributable to higher volumes in our renewable segment due to the B&W Renewable Services operations, as well as the thermal segment volume, which increased due to higher levels of construction and parts activity. Our net operating income for the third quarter of 2023 was $5.5 million, compared to an operating loss of $2.7 million in the third quarter of 2022. Our adjusted EBITDA was $20 million, as compared to $13 million in the third quarter of 2022.

我們第三季的合併收入為2.394 億美元，與2022 年第三季相比成長了13%。這主要歸因於B&W 再生能源服務業務導致我們的再生能源部門的銷售增加，以及熱力部門的銷量，由於建築和零件活動水平較高，這一數字有所增加。我們 2023 年第三季的淨營業收入為 550 萬美元，而 2022 年第三季的營業虧損為 270 萬美元。我們調整後的 EBITDA 為 2,000 萬美元，而 2022 年第三季為 1,300 萬美元。

Bookings in the third quarter of 2023 were $198 million, and the ending backlog at the end of the quarter, third quarter of 2023 was $507 million. Our net loss per share in the third quarter was $0.18 as compared to a loss per share of $0.15 in the third quarter of 2022. As Kenny mentioned, we've reclassified the solar business out of continuing operations. As a result, will have taken an impairment charge of about $56.6 million and recognize contract losses of $47.9 million, which include future estimated losses, both of which are reported in discontinued operations.

2023 年第三季的預訂量為 1.98 億美元，截至 2023 年第三季末的積壓訂單為 5.07 億美元。我們第三季的每股淨虧損為 0.18 美元，而 2022 年第三季的每股虧損為 0.15 美元。正如肯尼所提到的，我們已將太陽能業務從持續經營業務中重新分類。因此，將承擔約 5,660 萬美元的減損費用，並確認 4,790 萬美元的合約損失，其中包括未來估計損失，兩者均在已終止經營業務中報告。

We're pursuing potential recoveries of certain of these amounts, up to $40 million. And there is no assurance that these amounts will be recovered. Accordingly, such recoveries have not been recognized in the financial statements.

我們正在尋求追回其中部分金額，最高可達 4,000 萬美元。並且無法保證這些金額會被收回。因此，此類收回並未在財務報表中確認。

I'll now turn to our third quarter segment results. Within our Babcock & Wilcox Renewable segment, revenues were $87.1 million for the third quarter of 2023, which is an 11% increase compared to $78.5 million in the third quarter of 2022. The increase in revenue is due primarily to higher volume associated with renewable services. And our adjusted EBITDA in the third quarter was $10.1 million as compared to $4.5 million in the third quarter of 2022, primarily due to the higher revenue volumes as described above.

我現在將談談我們第三季的部門業績。在我們的Babcock & Wilcox 再生能源部門，2023 年第三季的營收為8,710 萬美元，與2022 年第三季的7,850 萬美元相比成長了11%。營收的成長主要是由於與再生能源服務相關的交易量增加。我們第三季調整後的 EBITDA 為 1,010 萬美元，而 2022 年第三季為 450 萬美元，這主要是由於如上所述的收入量增加。

Within the Babcock & Wilcox Environmental segment, revenues were $46.4 million in the third quarter of 2023, which is an increase of 4% compared to the $44.6 million in the third quarter of 2022. The increase is primarily driven by a lower volume related to flue gas treatment projects offset by a higher overall volume of cooling technology projects. Adjusted EBITDA was $5 million for the quarter as compared to $3.1 million for the same period last year. And again, this is primarily driven by higher product mix, higher margin product mix as described above, along with favorable close out of flue gas -- flue gas treatment plants, sorry about that it's hard for me to say flue gas.

在Babcock & Wilcox 環境部門，2023 年第三季的營收為4,640 萬美元，與2022 年第三季的4,460 萬美元相比成長了4%。這一成長主要是由於與煙道相關的銷量減少所致氣體處理項目被冷卻技術項目總量較高所抵消。本季調整後 EBITDA 為 500 萬美元，去年同期為 310 萬美元。再說一次，這主要是由如上所述的更高的產品組合、更高的利潤產品組合以及煙氣處理廠的有利關閉所推動的，抱歉，我很難說煙氣。

Turning to our Babcock & Wilcox Thermal segment. Revenues were $107 million in the third quarter of 2023, which is an increase of 17% compared to the $91.3 million in the third quarter of 2022. And this was primarily attributable to the higher level of volume in our construction projects, as well as parts and service and our package boiler businesses. This was partially offset by a decline in certain service projects.

轉向我們的 Babcock & Wilcox Thermal 部分。 2023 年第三季的營收為 1.07 億美元，與 2022 年第三季的 9,130​​ 萬美元相比成長了 17%。這主要歸因於我們的建築項目以及零件數量的增加和服務以及我們的鍋爐業務。這被某些服務項目的減少部分抵消。

Adjusted EBITDA in the third quarter of 2023 was $11.3 million, compared to $10.8 million in the third quarter of 2022. This was primarily driven by the higher revenue volume and product mix described above.

2023 年第三季調整後 EBITDA 為 1,130 萬美元，而 2022 年第三季為 1,080 萬美元。這主要是由於上述收入量和產品組合的增加所致。

I'll now turn to our balance sheet cash flow and liquidity. Total debt on September 30, 2023, was $377.6 million, and the company had cash and cash equivalents and restricted cash balance of $65.1 million. Additionally, subsequent to September 30, 2023, we obtained a commitment to refinance our senior credit facility and amend our existing reimbursement agreement, including updating certain financial covenants there under. The refinance commitment is expected to reduce our interest cost by up to $5 million per year based on current interest rates. The financing and strategic alignment should significantly improve our liquidity this quarter and onward.

現在我將談談我們的資產負債表現金流和流動性。截至 2023 年 9 月 30 日，債務總額為 3.776 億美元，公司擁有現金和現金等價物以及限制性現金餘額為 6,510 萬美元。此外，2023 年 9 月 30 日之後，我們獲得了為我們的高級信貸額度再融資並修改我們現有報銷協議的承諾，包括更新其中的某些財務契約。根據當前利率，再融資承諾預計每年可將我們的利息成本降低高達 500 萬美元。融資和策略調整應該會顯著改善我們本季及以後的流動性。

I'm also pleased to announce that we have -- as Kenny had mentioned, we've signed a letter of intent for the financing of our first BrightLoop hydrogen project being developed in Massillon, Ohio.

我還很高興地宣布，正如肯尼所提到的，我們已經簽署了一份意向書，為俄亥俄州馬西隆正在開發的第一個 BrightLoop 氫項目提供融資。

Now I'll turn the call back over to Kenny.

現在我將把電話轉回給肯尼。

Thanks, Lou. Well in closing, while Q3 wasn't without challenges, many included several strategic decisions to improve the fundamentals of our business, we are extremely excited about the growth opportunities ahead of us. With increasing commercial interest in our core and new technologies and global demand for our baseload power generation, our market outlook remains robust and we see the momentum and booking activity accelerating into 2024 and beyond.

謝謝，盧。最後，雖然第三季並非沒有挑戰，其中許多挑戰包括多項策略決策，以改善我們業務的基本面，但我們對眼前的成長機會感到非常興奮。隨著人們對我們的核心和新技術的商業興趣不斷增加，以及全球對我們的基載發電的需求，我們的市場前景仍然強勁，我們看到這種勢頭和預訂活動將加速到2024 年及以後。

Finally, as always, I'd like to recognize the efforts of our employees as they continue to drive our success as an organization worldwide. With the outstanding support of our extremely talented and experienced employees and the continued confidence of our customers, we're driving innovation and supporting the global transition to sustainable solutions and we're focused on delivering strong profitable growth for our shareholders.

最後，像往常一樣，我要感謝我們的員工所付出的努力，他們不斷推動我們作為全球組織的成功。憑藉我們才華橫溢、經驗豐富的員工的出色支持以及客戶的持續信心，我們正在推動創新並支持全球向永續解決方案的過渡，我們致力於為股東帶來強勁的利潤成長。

We are entering a new phase and as we execute our strategic business realignment, and we look forward to the transformation that will enhance overall margins and improve cash flows generation for the company.

我們正在進入一個新的階段，隨著我們執行策略性業務調整，我們期待轉型將提高公司的整體利潤率並改善現金流的產生。

I'll now turn the call back over to Hannah, who will assist with any questions, Hannah?

我現在將電話轉回給漢娜，她將協助解答任何問題，漢娜？

(Operator Instructions) Aaron Spychalla, Craig Hallum.

（操作員說明）Aaron Spychalla、Craig Hallum。

Yes, good afternoon, Kenny and Lou. Thanks for taking the questions.

是的，下午好，肯尼和盧。感謝您提出問題。

Hi, Aaron, no problem.

嗨，亞倫，沒問題。

Thanks. First for me on the guidance -- appreciate some of the color there. Can you just talk a little bit more about the exclusion of kind of BrightLoop and ClimateBright there? What those investments might look like as we think about 2024? And then maybe just elaborate a little bit -- you talked about some kind of project level financing and other things that you're pursuing there.

謝謝。首先對我來說是指導——欣賞那裡的一些顏色。能多談談排除 BrightLoop 和 ClimateBright 的情況嗎？展望 2024 年，這些投資會是什麼樣子？然後也許只是詳細說明一下——您談到了某種項目級別的融資以及您在那裡追求的其他事情。

Sure, I'll be happy to. So I would think about BrightLoop and ClimateBright from a broader company expense standpoint to be, I don't know, under $10 million, but $5 million to $7 million, perhaps somewhere in that neighborhood and just to give some transparency there.

當然，我很樂意。因此，我會從更廣泛的公司支出角度考慮BrightLoop 和ClimateBright，我不知道，低於1000 萬美元，但500 萬到700 萬美元，也許在那個附近的某個地方，只是為了在那裡提供一些透明度。

From a B&W standpoint, obviously, the project financing that we're referring to will going at the project level, versus an impact necessarily to B&W. So, there'll be a timing and depending on how that project financing is set up, and the exact structure of ownership of those particular projects, how the revenue will flow back and forth to B&W, as we've mentioned in the past. But from an expense perspective, rough order of magnitude, that's how we're thinking about BrightLoop and ClimateBright.

從 B&W 的角度來看，顯然，我們所指的專案融資將在專案層面進行，而不是必然對 B&W 產生影響。因此，正如我們過去提到的，將會有一個時間安排，具體取決於專案融資的設置方式、這些特定專案的確切所有權結構、收入將如何來回流到 B&W。但從費用的角度來看，大致的數量級，這就是我們對 BrightLoop 和 ClimateBright 的看法。

All right, thanks for that. And then second, just on the backlog. Can you talk a little bit -- can you just give a little more color on some of those projects? It sounds like maybe just slipping into 2024 -- any of those been lost? Or is it just kind of more of a project timing? And then you kind of talked about accelerating momentum, just maybe some of the areas that you're looking for as we head into '24?

好的，謝謝。其次，就是積壓的工作。你能談談嗎——你能為其中一些項目提供更多的色彩嗎？聽起來可能只是進入 2024 年——其中有沒有丟失的？或者這只是一個專案時間安排？然後你談到了加速勢頭，也許只是我們進入 24 世紀時你正在尋找的一些領域？

Yes, well, actually, I would -- even though we're in November here, we're talking about Q3 on this call. I would say some of those are slipping more into Q4, maybe into 2024. It just depends as we work through this negotiations on a few projects that we're trying to complete on that. As referenced in my comments, some of those delays are referred to, is increasing some scope and activity potentially for B&W as few of the projects, we're looking to larger upgrades and enhancements. And some of our customers are now trying to ascertain how they can extend out the life of these plants longer than maybe they had anticipated. So, it's caused us to or caused them to relook at some of the scope in a positive way as it relates to B&W and so we're excited about that.

是的，好吧，實際上，我會 - 儘管我們已經在 11 月了，但我們在這次電話會議上討論的是第三季度。我想說，其中一些項目將更多地推遲到第四季度，也許推遲到 2024 年。這只取決於我們正在努力完成的一些項目的談判。正如我的評論中所提到的，其中一些延遲正在增加 B&W 的一些潛在範圍和活動，因為很少有項目，我們正在尋求更大的升級和增強。我們的一些客戶現在正在嘗試確定如何將這些工廠的使用壽命延長到比他們預期的更長的時間。因此，這導致我們或導致他們以積極的方式重新審視與黑白相關的某些範圍，因此我們對此感到興奮。

So those negotiations continued. But hopefully, and we have full intent to get those books still in Q4. But one or two of those may slip out into 2024, as well. But it's more of a timing, I think, just from a negotiations aspect. And as the customers read or look at their approach to some of these technologies and the lifespan of the plants, which in the long run bodes well for us as an aftermarket provider. So that's how we look at it.

因此這些談判仍在繼續。但希望我們完全有意願讓這些書留在第四季。但其中一兩個也可能會延後到 2024 年。但我認為，從談判的角度來看，這更多的是一個時機。當客戶閱讀或查看他們對其中一些技術的方法以及設備的使用壽命時，從長遠來看，這對我們作為售後供應商來說是個好兆頭。這就是我們的看法。

I think worldwide, obviously, some newbuild opportunities, in particular, I would say in renewable energy, waste energy. Some of those are delayed a little bit because of the interest rate increases and timing of capital expenditures. But not for any other reason. So, there's a few that will probably extend into next year, overall. But for us as we talked about on the business, as reducing the overhead associated with large newbuild, which this is an opportunity for us to do that, we also see potentially increasing opportunities around licensing and licensing some of our waste-to-energy technologies and in support of some of the new direction that we want to take in the company. So, we'll balance that as we transition more towards licensing and less on specific large new build opportunities.

我認為在全球範圍內，顯然存在一些新建機會，特別是在再生能源、廢棄能源方面。由於利率上升和資本支出的時間安排，其中一些計劃會稍微延遲。但不是出於任何其他原因。因此，總體而言，有一些可能會延續到明年。但對我們來說，正如我們在業務上所討論的那樣，減少與大型新建項目相關的管理費用，這是我們這樣做的一個機會，我們也看到圍繞許可和許可我們的一些廢物轉化能源技術的潛在機會正在增加並支持我們希望公司採取的一些新方向。因此，當我們更多地轉向許可而不是特定的大型新建機會時，我們將平衡這一點。

Understood. Thanks for taking the questions. I'll turn it over.

明白了。感謝您提出問題。我會把它翻過來。

Thanks.

謝謝。

Brent Thielman, D.A. Davidson.

布倫特·蒂爾曼，D.A.戴維森。

Hi, thanks. Good afternoon. Hi, can you -- well, I just wanted to confirm the 2024 EBITDA target is $100 million to $110 million excluding BrightLoop and ClimateBright?

你好謝謝。午安.您好，我只是想確認 2024 年 EBITDA 目標是 1 億至 1.1 億美元，不包括 BrightLoop 和 ClimateBright？

That's correct, yes.

這是正確的，是的。

Okay. And I just -- again, another clarification, I think you said $5 million to $7 million against that potentially in costs just in support of BrightLoop and ClimateBright. Is that the right sort of baseline?

好的。我只是——再次澄清一下，我想你說的是 500 萬到 700 萬美元，而這只是為了支持 BrightLoop 和 ClimateBright 的潛在成本。這是正確的基線嗎？

Yes. I think that's -- let's say below $10 million, but somewhere in that range. I think it's a good number, if it will tweak and very little bit depending on the project financing and how we deal with that on these projects as they continue to advance and the timing of some of the state funding that we're anticipating, as well as other SPV level investors that would be investing in those projects.

是的。我認為——假設低於 1000 萬美元，但在這個範圍內。我認為這是一個很好的數字，如果它會根據項目融資以及我們在這些項目繼續推進時如何處理這些項目以及我們預期的一些國家資金的時間安排進行調整，並且調整幅度很小，以及其他將投資這些項目的SPV 級別投資者。

So there's just an element of that tiny piece and how the revenue flow between the projects back to B&W would take place, which could plus or minus those expenses from a EBITDA standpoint. But it's a little early to predict precisely how that will work and the timing of that. But we see that pathway unfolding. So just give you some range. That's kind of how we're thinking about it.

因此，只有這一小部分的一個要素，以及專案之間的收入如何流回 B&W，從 EBITDA 的角度來看，這可能會增加或減少這些費用。但現在準確預測它將如何運作以及其實施的時間還為時過早。但我們看到這條道路正在展開。所以只給你一些範圍。這就是我們的想法。

Okay, that's helpful. And I guess, I mean, particularly in regard to some of these moves to boost the cash flow of the business. Can you talk about what sort of your expectations are assuming kind of this 2024 EBITDA target range? Should get some benefits from this overall strategic realignment -- I assume there's less drag from certain operations as a function of this. How should we think about that '24 EBITDA converting into cash flow?

好的，這很有幫助。我想，我的意思是，特別是在其中一些旨在增加企業現金流的舉措方面。您能否談談您對 2024 年 EBITDA 目標範圍的預期是什麼？應該從這種整體策略調整中獲得一些好處——我認為因此某些業務的阻力會減少。我們該如何看待 '24 EBITDA 轉化為現金流？

Yes. Brent, from our standpoint, the emphasis on the thermal business, and what we're now -- what we also call power business, which generate much more cash flow than newbuild projects. We should start seeing a better conversion that we've had in the past, from adjusted EBITDA to the cash. Some of that cash will be used, as Kenny talked about, to continue to expand our BrightLoop penetration. But we should be able to convert a much higher percentage than we've converted and have positive cash flow coming into the second quarter of next year. Conversion rate would probably be -- I'll be a little bit broad on that because of CapEx, but the conversion rate would probably be in the 60% range with respect to cash.

是的。布倫特，從我們的角度來看，重點是熱力業務，以及我們現在的業務——我們也稱之為電力業務，它比新建項目產生更多的現金流。我們應該開始看到比過去更好的轉換，從調整後的 EBITDA 到現金。正如肯尼所說，其中一些現金將用於繼續擴大 BrightLoop 的滲透率。但我們應該能夠實現比已轉換的更高的百分比，並在明年第二季度實現正現金流。由於資本支出的原因，轉換率可能會有點廣泛，但相對於現金而言，轉換率可能會在 60% 的範圍內。

Starting 2Q? Is that BrightLoop?

從第二季開始？那是光明循環嗎？

Yes. I'd say middle of Q2, we'll start seeing that. Plus Q1, as you know, Brent, Q1 is always a slow quarter for us, as well as others in this industry.

是的。我想說的是，從第二季中期開始，我們就會開始看到這一點。再加上第一季度，正如你所知，布倫特原油，第一季對於我們以及這個行業的其他人來說總是一個緩慢的季度。

Yes. Okay, and then I guess, just in regard to some of the financing, that you've done here recently. Maybe your thoughts, next steps just related to the capital structure that you may or may not need to take -- I guess in order to sort of support the ongoing kind of financing commitments you've got out there, support the growth of the company, support BrightLoop. Do you feel like the capital structures in place? You can do all that at that stage?

是的。好的，然後我想，只是關於您最近在這裡完成的一些融資。也許你的想法，下一步只是與你可能需要或可能不需要採取的資本結構有關——我想為了支持你已經做出的持續的融資承諾，支持公司的發展，支持BrightLoop。您覺得資本結構到位嗎？在那個階段你能做到這一切嗎？

Yes. I think the committed financing that we talked about earlier, for the $150 million for the senior credit facility, which will be both what I'll call the letters of credit facility and the revolver, certainly helps our capital structure, as does the lower interest rate. And as Kenny mentioned, we're kind of looking at some of the strategic areas that may not fit with our new direction, and that may generate some cash.

是的。我認為我們之前談到的 1.5 億美元高級信貸額度（我稱之為信用證額度和左輪手槍）的承諾融資肯定有助於我們的資本結構，較低的利息也有幫助。速度。正如肯尼所提到的，我們正在研究一些可能不符合我們新方向的策略領域，這可能會產生一些現金。

Yes, I'll add -- yes if I'll add to that, just really quick though. But that $100 million to $110 million EBITDA range, it's important to note and try to emphasize this that we were lessening, if you will, the reliance on large newbuild projects as it relates to that target. That that doesn't mean that we won't be entering into certain projects, if it makes sense for us to enter into. We're trying to obviously allow those to be more upside to that target, rather than a necessity in order to achieve the target. So tried to be a little more conservative on that approach with putting that guidance or targets out there.

是的，我會補充——是的，如果我補充的話，只是很快。但在 1 億至 1.1 億美元的 EBITDA 範圍內，重要的是要注意並試圖強調這一點，如果你願意的話，我們正在減少對大型新建項目的依賴，因為它與該目標相關。這並不意味著我們不會進入某些項目，如果它對我們有意義的話。顯然，我們試圖讓這些對目標有更大的好處，而不是實現目標的必要條件。因此，嘗試在這種方法上採取更保守的態度，並提出指導或目標。

Okay, great. Thank you, Kenny.

好的，太好了。謝謝你，肯尼。

Yes.

是的。

Rob Brown, Lake Street Capital Markets.

羅布布朗，湖街資本市場。

Good afternoon. I just want to clarify a little bit more on your comments on the realignment and the not sort of pursuing these larger projects. So, what kind of the, assuming its waste energy, which are you -- then no bidding projects? Or how do you sort of go to market with that? And have you changed your focus there?

午安.我只是想進一步澄清一下您對重組以及不追求這些更大項目的評論。那麼，什麼樣的，假設它浪費能源，你是哪一個——然後沒有招標項目？或者你如何將其推向市場？你改變了你的注意力嗎？

Yes. It's not as complicated as it sounds. We were simply twofold, and I'll explain it further. We have certain opportunities in certain parts on waste energy particular international opportunities require certain security package levels. The certain security packages, i.e., LCs or letters of credit, as it relates to us come with high interest rates, right. So, a lot of in waste energy, the margins are not as high on newbuild -- clearly not as high as our aftermarket parts and services on renewable services. But those letters of credit and the interest associated with really compresses the margins, plus, you know, additional risks.

是的。它並不像聽起來那麼複雜。我們只是雙重的，我將進一步解釋它。我們在廢棄物能源的某些部分有一定的機會，特別是國際機會需要一定的安全包水準。某些與我們相關的擔保方案，即信用證或信用證，利率很高，對吧。因此，在許多廢棄能源中，新建築的利潤率並不高——顯然不如我們的再生服務的售後零件和服務高。但這些信用證和相關利息確實壓縮了利潤，而且，你知道，還有額外的風險。

So, as we look at going forward there's two aspects, there are opportunities and projects that we're in discussions and negotiations on regarding waste energy, specifically, that would have higher margin potential or targets associated with them, that are well above and beyond the interest expense associated with the letters of credits. So those are positive ones are opportunities for us to pursue that. But we want to remove the reliance of that in our forecasts so that they're more upside rather than a necessity, if that makes sense.

因此，當我們展望未來時，有兩個方面，我們正在討論和談判有關廢棄能源的機會和項目，具體來說，這些機會和項目將具有更高的利潤潛力或與之相關的目標，遠遠超出了這些目標與信用證相關的利息費用。因此，這些都是正面的，是我們追求這一目標的機會。但我們希望消除我們的預測中對此的依賴，以便它們更具上行空間而不是必需品（如果這是有道理的）。

But secondarily, we do see an expansion opportunity on licensing, we have been licensing our waste-to-energy technology in several markets, and that typically comes at even higher gross margins, and significantly lower amounts of letters of credit. So the interest rate expenses are, or the cost of that are much more attractive to us from a margin standpoint.

但其次，我們確實看到了許可方面的擴張機會，我們已經在多個市場許可了我們的垃圾發電技術，這通常會帶來更高的毛利率，並且信用證金額顯著降低。因此，從利潤的角度來看，利率費用或利息費用對我們來說更具吸引力。

So it's not necessarily a no bid or zero bid, it's just as we continue to focus will reduce the overhead down to match what we think is the hands one or two or three or whatever the projects that we think that are -- a stronger opportunity for us from a margin and cash flow standpoint, as we also increase the licensing model that we have, particularly around our waste energy technologies. So, it's -- I don't know if that makes sense, but it's as simple as that sounds.

因此，這不一定是無出價或零出價，這只是因為我們繼續專注於將減少管理費用，以匹配我們認為的一手、二手或三手或我們認為的任何項目——一個更強的機會從利潤和現金流的角度來看，對我們來說，因為我們也增加了我們擁有的授權模式，特別是圍繞著我們的廢棄物能源技術。所以，我不知道這是否有意義，但聽起來很簡單。

Okay, got it. Thank you. The BrightLoop pipeline, I know you've given pretty good color on it over your last analyst kind of update. But how is that pipeline kind of at this point? Are you seeing more projects come into it? Are you seeing -- what's the direction in terms of project certainty in some of those projects that we're waiting for some of the government supports and financing incentives?

好，知道了。謝謝。 BrightLoop 管道，我知道您在上次分析師更新中已經對其進行了很好的描述。但目前該管道的情況如何？您是否看到更多項目加入其中？您是否看到——我們正在等待政府支持和融資激勵的一些項目的項目確定性方向是什麼？

Yes. So, we are excited about the opportunities in the pipeline building. When we announced the pipeline, we typically keep it to three year projects that we think will book in the next three years. So, I guess, if we expanded that pipeline to total opportunities, you would see several more billions in those opportunities. And that's mainly run a BrightLoop as it relates to those larger projects. So, our overall opportunities on BrightLoop keep growing around that. We have as a result of that, we keep expanding that organization going forward in BrightLoop and ClimateBright. We haven't got to a final decision on this yet. But we're debating and discussing whether or not we should move BrightLoop and ClimateBright maybe to a separate, at least discussion, not necessarily segment going into next year. But we're not at that point yet.

是的。因此，我們對管道建設中的機會感到興奮。當我們宣布管道時，我們通常將其保留為我們認為將在未來三年內預訂的三年期項目。因此，我想，如果我們將通路擴大到總機會，您將看到這些機會的價值增加了數十億美元。這主要是運行 BrightLoop，因為它與那些較大的項目有關。因此，我們在 BrightLoop 上的整體機會圍繞著這一點不斷增長。因此，我們在 BrightLoop 和 ClimateBright 中不斷擴大該組織。我們還沒有就此做出最終決定。但我們正在辯論和討論是否應該將 BrightLoop 和 ClimateBright 移至單獨的部分（至少是討論部分），但不一定要進入明年。但我們還沒到那個地步。

But the short term aspect, the opportunity, as Lou mentioned, Ohio now is moving into a real project for us. The financing is coming into place, the offtake agreements are moving into definitive agreements for up to 10 years, take or pay on that hydrogen. Obviously, it's not a big plant, relatively speaking. But it's important because it puts in the ground commercial technology for us and moves it from where we were before.

但從短期來看，機會，正如盧所提到的，俄亥俄州現在正在進入我們的一個真正的計畫。融資正在到位，承購協議正在進入長達 10 年的最終協議，無論是購買還是支付氫氣。顯然，相對而言，它並不是一個大工廠。但這很重要，因為它為我們提供了基礎商業技術，並將其從我們之前的位置轉移。

The state discussions that we're having with several states now continue, those applications are moving into a real status. Some of those will start to move into public domain soon, and you'll see further announcements on that. It might be a phased in approach on some of that funding coming from states. And we're -- we continue the discussions on the federal level as well too. The other aspects, again, it's kind of a circular piece, but the hydrogen hubs that were just recently announced by the DoE, in particular, the Appalachian hub, we've mentioned before, previously, some of the work that's taking place there and mountaineers in West Virginia, that's all pull through that will eventually some of that will get down to us. That's going to take time obviously, but those things keep moving on.

我們與幾個州的州討論現在仍在繼續，這些申請正在進入實際狀態。其中一些很快就會開始進入公共領域，您將看到相關的進一步公告。對於來自各州的部分資金，這可能是分階段的方法。我們也在聯邦層級繼續進行討論。其他方面，同樣，它是一個圓形部件，但是美國能源部最近剛剛宣布的氫中心，特別是阿巴拉契亞中心，我們之前已經提到過，之前在那裡正在進行的一些工作，西弗吉尼亞州的登山者們，這一切都已經過去了，最終我們會得到一些幫助。顯然這需要時間，但這些事情仍在繼續。

We've increased testing now, I'm going to throw out a number, it's probably we're up to about 30 different fuel testing. Samples that we're testing across a broad range in utilizing solid fuels, such as certain coal developments also in biomass developments in multiple locations that's going through our labs at this point time. So, we keep increasing the amount of fuel testing related to the opportunities. And we keep developing the opportunities as we keep unfolding the projects that are there before us.

我們現在增加了測試，我要給出一個數字，可能我們已經進行了大約 30 種不同的燃料測試。我們正在廣泛測試使用固體燃料的樣品，例如目前正在透過我們的實驗室進行的多個地點的某些煤炭開發以及生物質開發。因此，我們不斷增加與機會相關的燃料測試量。隨著我們不斷開展擺在我們面前的項目，我們不斷開發機會。

But as mentioned in the comments today, the developments around Air Products and getting to a 10 year agreement with moving forward with them to finalize a 10-year agreement that location is a big step -- that plus the general hydrogen announcement puts us in an offtake of up to 220 tonnes a day. We are in negotiations on the feedstock aspect, mainly biomass in that particular location. And we're in negotiations on the lease, and then the air permitting process there.

但正如今天評論中提到的，圍繞空氣產品公司的發展以及與他們達成一項10 年協議，最終敲定一項10 年協議，該協議的位置是一大進步- 再加上通用氫公告使我們處於一個每天的卸貨量高達 220 噸。我們正在就原料方面進行談判，主要是該特定地點的生物質。我們正在就租賃事宜進行談判，然後再就那裡的航空許可程序進行談判。

We are also in discussions on funding around that project. So, all corners of that pyramid are coming together. The same -- and some of the other locations is and, we'll keep announcing that obviously, as we continue to make progress there. But BrightLoop keeps expanding. And we're excited about those opportunities.

我們也正在討論圍繞該專案的融資問題。所以，金字塔的所有角落都聚集在一起。同樣的，其他一些地點也是如此，隨著我們繼續在那裡取得進展，我們顯然會繼續宣布這一點。但 BrightLoop 仍在不斷擴張。我們對這些機會感到興奮。

One of the areas I didn't talk about in the comments, but I'll say it on the call here that we're starting to see more early on this. So, we'll identify this as we move along. But what we're starting to see globally, and potentially in the US is actually combining ammonia, either net negative or net neutral ammonia with coal-fired plants to reduce the overall CO2 offset of those coal fired plants. We see a wide that activity happening a lot, especially in Asia. There's been some discussions with a few here in the US, so really early on that application. But that's exciting for us. Because, as I mentioned before, a lot of these plants now are looking to extend their life cycle and power generation. And if we can introduce a net neutral, or net negative ammonia production from biomass, which BrightLoop can do, these power plants can actually have a carbon offset, that would take literally, depending on the mix could take a coal plant down to net -- at least net neutral by 2030.

這是我在評論中沒有談論的領域之一，但我會在電話會議上說，我們很早就開始看到更多這方面的內容。因此，我們將在前進過程中確定這一點。但我們開始在全球範圍內看到，甚至在美國，實際上是將氨（淨負氨或淨中性氨）與燃煤工廠結合起來，以減少這些燃煤工廠的整體二氧化碳排放量。我們看到這種活動經常發生，尤其是在亞洲。我們已經與美國的一些人進行了一些討論，所以在該申請的早期階段。但這對我們來說是令人興奮的。因為，正如我之前提到的，許多工廠現在都在尋求延長其生命週期和發電量。如果我們能夠從生物質引入淨中性或淨負氨產量，BrightLoop 可以做到這一點，那麼這些發電廠實際上可以實現碳抵消，這實際上是可以實現的，這取決於混合方式可以使燃煤電廠降至淨值 - - 到 2030 年至少實現網路中性。

And we think that's an exciting development. We're early in that discussion, but it bodes well for us, because it's both aftermarket parts and services for our baseload power generation and thermal group. But it also opens up offtake for the ammonia produced by net negative carbon intensity BrightLoop using biomass. So, we're excited about both ends of that spectrum. And that's one of the decision points that went into our thinking that get more around our thermal parts and services and our renewable parts and services and focus more on the BrightLoop and ClimateBright, because it's becoming more real for us at the same time reduce some of the costs associated with some of the other areas. So, all of that adds into that realignment strategy.

我們認為這是一個令人興奮的發展。我們處於討論的早期階段，但這對我們來說是個好兆頭，因為它既是我們基本負載發電和熱力集團的售後零件和服務。但它也為使用生物質的淨負碳強度 BrightLoop 生產的氨開闢了承購管道。因此，我們對這個範圍的兩端都感到興奮。這是我們思考的決策點之一，更多地圍繞我們的熱力零件和服務以及可再生零件和服務，並更多地關注BrightLoop 和ClimateBright，因為它對我們來說變得更加現實，同時減少了一些與其他一些領域相關的成本。因此，所有這些都融入了重組策略中。

Okay, great. Thank you for all the color. I'll turn it over.

好的，太好了。謝謝你所有的顏色。我會把它翻過來。

Alex Rygiel, B. Riley.

亞歷克斯·里吉爾，B.萊利。

Thanks. Good evening, Kenny and Lou, a lot going on here. So, let's get into a couple of things. First, as it relates to the $30 million in annual cost savings. Can you comment on the timing of that? And how important is that in getting to your target EBITDA of $100 million to $110 million next year?

謝謝。晚上好，肯尼和盧，這裡發生了很多事。那麼，讓我們來討論幾件事。首先，因為它涉及每年 3000 萬美元的成本節省。能否評論一下具體時間？這對於實現明年 1 億至 1.1 億美元的 EBITDA 目標有多重要？

Yes. Some of that is already started and will help out a little bit in Q4 and clearly will kick in heavily into Q1 on that. So that process has already begun. Obviously, we're taking steps some of the timing of that may be more in Q1 than now. But they've been identified and those are in process to be implemented, I guess, that's way to describe it.

是的。其中一些已經開始，將在第四季度有所幫助，並且顯然將在第一季發揮重要作用。所以這個過程已經開始了。顯然，我們正在採取一些措施，其中一些時間可能會在第一季比現在更多。但它們已經被確定，並且正在實施，我想，這就是描述它的方式。

Excellent. And then there was a reference to strategic alternatives related to non-strategic assets. Is there any chance you could quantify kind of the possible value here that you could realize in making those?

出色的。然後提到了與非策略資產相關的策略替代方案。您是否有機會量化您在製作這些產品時可以實現的可能價值？

I know it's a great question, Alex, I wish I could, but I'll leave that out for the moment. But just wanted to say we're -- we look at various things from assets. Some of those could be property locations and other things assets that no longer strategically that we need going forward. But we don't have a valuation or anything that we'd want to put out at this point in time.

我知道這是一個很好的問題，亞歷克斯，我希望我能回答這個問題，但我暫時先不提這個問題。但我只是想說，我們從資產中審視各種事物。其中一些可能是我們未來不再需要的策略性資產和其他資產。但我們目前還沒有估值或任何想要發布的資訊。

Great, thank you very much.

太好了，非常感謝。

Thanks, everyone.

感謝大家。

That concludes the question-and-answer session. I would now like to turn the call over to Sharyn for any closing remarks.

問答環節到此結束。我現在想將電話轉給 Sharyn，讓其結束語。

Thank you for joining us today. This concludes our conference call. A replay will be available for a limited time on our website later today.

感謝您今天加入我們。我們的電話會議到此結束。今天晚些時候，我們的網站將在有限時間內提供重播。

That concludes today's call. Thank you for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在您可以斷開線路。