Cooper-Standard Holdings Inc (CPS) 2022 Q3 法說會逐字稿

完整原文

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  • Operator

    Operator

  • Good morning, ladies and gentlemen, and welcome to the Cooper-Standard Third Quarter 202 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded, and the webcast will be available on the Cooper-Standard website for replay later today.

    女士們先生們,早上好,歡迎參加 Cooper-Standard 202 年第三季度收益電話會議。 (操作員說明)作為提醒,本次電話會議正在錄製中,網絡直播將於今天晚些時候在 Cooper-Standard 網站上進行重播。

  • I will now turn the call over to Roger Hendriksen, Director of Investor Relations.

    我現在將把電話轉給投資者關係總監 Roger Hendriksen。

  • Roger S. Hendriksen - Director of IR

    Roger S. Hendriksen - Director of IR

  • Thanks, Olivia, and good morning, everyone. We appreciate you spending some time on the call with us this morning. The members of our leadership team who will be speaking with you on the call this morning are Jeff Edwards, Chairman and Chief Executive Officer; and Jon Banas, Executive Vice President and Chief Financial Officer. Before we begin, I need to remind you that this presentation contains forward-looking statements. While they are made based on current factual information and certain assumptions and plans that management currently believes to be reasonable, these statements do involve risks and uncertainties.

    謝謝,奧利維亞,大家早上好。感謝您今天早上花一些時間與我們通話。今天上午將與您通話的領導團隊成員是董事長兼首席執行官 Jeff Edwards;和執行副總裁兼首席財務官 Jon Banas。在開始之前,我需要提醒您,本演示文稿包含前瞻性陳述。雖然它們是基於當前的事實信息以及管理層目前認為合理的某些假設和計劃做出的,但這些陳述確實涉及風險和不確定性。

  • For more information on forward-looking statements, we ask that you refer to Slide 3 of this presentation and the company's statements included in periodic filings with the Securities and Exchange Commission. This presentation also contains non-GAAP financial measures. Reconciliations of the non-GAAP financial measures to their most directly comparable GAAP measures are included in the appendix to the presentation.

    有關前瞻性陳述的更多信息,我們請您參閱本演示文稿的幻燈片 3 以及定期向美國證券交易委員會提交的文件中包含的公司聲明。本演示文稿還包含非公認會計原則財務措施。非公認會計原則財務指標與其最直接可比的公認會計原則指標的對賬包含在演示文稿的附錄中。

  • With those formalities out of the way, I'll turn the call over to c.

    處理完這些手續後,我將把電話轉給 c。

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Thanks, Roger. Good morning, everyone. We appreciate the opportunity to review our third quarter and year-to-date results and provide an update on our business and the outlook going forward.

    謝謝,羅傑。大家,早安。我們很高興有機會審查我們的第三季度和年初至今的業績,並提供有關我們業務和未來前景的最新信息。

  • To begin on Slide 5, we provide some highlights or key indicators of how our operations performed in the third quarter. We continue to execute at world-class levels by delivering quality products and services to our customers and keeping our employees safe. At the end of the quarter, 98% of our customer scorecards for product quality were green. Our launch performance scorecards were at 96% green for the quarter. More importantly, the safety performance of our plants continues to be outstanding.

    從幻燈片 5 開始,我們提供了一些關於我們在第三季度的運營表現的亮點或關鍵指標。我們通過向客戶提供優質的產品和服務並確保員工的安全,繼續以世界一流的水平執行任務。在本季度末,我們 98% 的客戶產品質量記分卡是綠色的。我們本季度的發布績效記分卡為 96% 的綠色。更重要的是,我們工廠的安全性能依然出色。

  • Through the first 9 months of the year, we have 28 plants that still have a perfect safety record of 0 incidents. I want to recognize the teams at these plants for their continued commitment and leadership as they once again confirm that achieving our ultimate goal of 0 incidents is possible. I could not be more proud of the global team for their continued commitment in world-class achievements in maintaining a safe workplace for all. While conditions in the global automotive industry obviously remain challenging with continuing supply chain uncertainty, reduced production levels and high inflationary pressures. We've maintained our focus on reducing costs across the company.

    今年前 9 個月,我們有 28 家工廠仍然擁有 0 次事故的完美安全記錄。我要感謝這些工廠的團隊的持續承諾和領導,因為他們再次確認實現我們的 0 事故最終目標是可能的。我為全球團隊在維護所有人的安全工作場所方面持續致力於世界級成就而感到無比自豪。儘管供應鏈的持續不確定性、生產水平的下降和高通脹壓力,全球汽車行業的狀況顯然仍然充滿挑戰。我們一直專注於降低整個公司的成本。

  • Our manufacturing operations were to deliver -- were able to deliver $22 million in savings through lean initiatives and improving efficiencies in the quarter. Our SGA&E expense was down $7 million year-over-year as we continue to right size our fixed costs. In past restructuring actions delivered $2 million in benefits in the quarter. We also saw incremental benefits from our enhanced commercial agreements on pricing and cost recoveries in the quarter as more negotiations were concluded and additional adjustments were implemented and realized.

    我們的製造業務將交付——通過精益計劃和提高本季度的效率,能夠節省 2200 萬美元。隨著我們繼續調整固定成本的規模,我們的 SGA&E 費用同比下降了 700 萬美元。在過去的重組行動中,該季度帶來了 200 萬美元的收益。隨著更多談判的結束以及更多調整的實施和實現,我們還從本季度加強的定價和成本回收商業協議中看到了增量收益。

  • Moving to Slide 6. Our new product innovations continue to garner recognition from trade groups as well as our customers. This morning, I'm pleased to announce that our advanced thermoplastic thermal management solution for electric vehicles has been named a finalist in the Society of Plastics Engineers Annual automotive innovation competition. Our new PlastiCool 2000 tubing technology was developed specifically for the operating temperature and pressure environments required for glycol, thermal management systems in battery electric vehicles.

    轉到幻燈片 6。我們的新產品創新繼續獲得行業團體和客戶的認可。今天早上,我很高興地宣布,我們用於電動汽車的先進熱塑性塑料熱管理解決方案已入圍塑料工程師協會年度汽車創新競賽的決賽。我們新的 PlastiCool 2000 管道技術專為電池電動汽車中乙二醇、熱管理系統所需的工作溫度和壓力環境而開發。

  • It also aids in optimizing flow and provides a weight reduction of 60% compared to more traditional EPDM tubing technologies, helping to improve overall vehicle efficiency. Combined with our latest ERGO locks plus QuickConnect technology, the system also improves the flexibility and efficiency of the OEM assembly process. A significant value add for our customers. While we're pleased to be recognized by the Society of Plastic Engineers, we're even more pleased with the new business awards that our customers are giving us, largely driven by our continued focus on value-add innovation.

    與更傳統的 EPDM 管材技術相比,它還有助於優化流量並減輕 60% 的重量,有助於提高車輛的整體效率。結合我們最新的 ERGO 鎖和 QuickConnect 技術,該系統還提高了 OEM 裝配過程的靈活性和效率。為我們的客戶帶來顯著的增值。雖然我們很高興獲得塑料工程師協會的認可,但我們對客戶授予我們的新商業獎項更加滿意,這主要是由於我們對增值創新的持續關注。

  • Turning to Slide 7. Continuing on the topic of product innovation. During our last conference call in early August, I spoke about the progress we're making in expanding the scope and opportunities within our fluid handling business. Internally, we call it our 4C strategy, which refers to our 4 critical functions of fluid systems in a vehicle, connect, convey, control and communicate. Our traditional suite of products has focused primarily on the connect and convey functions. We have established a track record of providing world-class technology in many different types of tubing and related connectors, and they have garnered recognition and driven new business, as I just discussed.

    轉到幻燈片 7。繼續討論產品創新的主題。在 8 月初的最後一次電話會議上,我談到了我們在擴大流體處理業務範圍和機會方面取得的進展。在內部,我們稱之為 4C 戰略,指的是我們在車輛中流體系統的 4 個關鍵功能,即連接、輸送、控制和通信。我們的傳統產品套件主要側重於連接和傳送功能。正如我剛才所討論的,我們已經建立了在許多不同類型的油管和相關連接器中提供世界一流技術的記錄,並且它們已經獲得了認可並推動了新業務。

  • Through our comprehensive product strategy in the joint development agreement with (inaudible) 0:06:30, we announced in August. We're rapidly progressing the development of new skip generation technology that integrates the functionality of pumps with advanced fluid control routing and connection technologies into a single device. These new systems are expected to further optimize the cost, efficiency and complexity of thermal management in technically advanced electric vehicles.

    通過我們在與(聽不清)0:06:30 的聯合開發協議中的全面產品戰略,我們在 8 月宣布。我們正在快速推進新一代跳過技術的開發,該技術將泵的功能與先進的流體控制路由和連接技術集成到一個設備中。這些新系統有望進一步優化技術先進的電動汽車熱管理的成本、效率和復雜性。

  • For our OEM customer, it will add value through system simplification, enhanced performance, light weighting and improved fluid management efficiencies. For Cooper Standard, the new technology will significantly expand the scope of our product offering and increase our revenue and margin opportunities. Our fluid systems engineers are already collaborating with OEM design teams under multiple nondisclosure agreements to explore how our new capabilities and patented technologies can help them solve some of their biggest system design challenges. The early response has been very favorable, and we're excited about the potential new growth opportunities our expanded capabilities we'll provide.

    對於我們的 OEM 客戶,它將通過系統簡化、增強性能、輕量化和提高流體管理效率來增加價值。對於 Cooper Standard,新技術將顯著擴大我們的產品範圍並增加我們的收入和利潤機會。我們的流體系統工程師已經根據多項保密協議與 OEM 設計團隊合作,探索我們的新功能和專利技術如何幫助他們解決一些最大的系統設計挑戰。早期的反應非常有利,我們對我們將提供的擴展能力的潛在新增長機會感到興奮。

  • Moving to Slide 8. Our sealing product team is also delivering exciting new innovations for the electric vehicle market. Among these are flush seal and frameless sealing systems. These technologies are rapidly becoming favored design choices for the premium and electric vehicle markets as automakers work to differentiate their vehicles through a range of styling options. Of our most recent sealing business awards, 30% have been for frameless technology, and we expect this trend will continue. And this represents additional growth opportunity as the frameless technology drives a significantly higher content per vehicle, in some cases, more than 100% higher than traditional sealing systems.

    轉到幻燈片 8。我們的密封產品團隊還在為電動汽車市場提供令人興奮的新創新。其中包括平齊密封和無框密封系統。隨著汽車製造商努力通過一系列造型選擇來區分他們的汽車,這些技術正迅速成為高端和電動汽車市場的首選設計選擇。在我們最近的密封業務獎項中,30% 是針對無框技術的,我們預計這一趨勢將繼續下去。這代表了額外的增長機會,因為無框架技術推動每輛車的含量顯著增加,在某些情況下,比傳統密封系統高出 100% 以上。

  • We continue to believe our investments in product and technology innovation are the key to driving future profitable growth. We expect this will benefit us even further in the months and years ahead as we optimize our cost structure and as production volumes and inflationary pressures normalize.

    我們仍然相信我們對產品和技術創新的投資是推動未來盈利增長的關鍵。隨著我們優化成本結構以及產量和通脹壓力正常化,我們預計這將使我們在未來幾個月和幾年內進一步受益。

  • Now let me turn the call over to John to discuss the financial details of the quarter.

    現在讓我把電話轉給約翰,討論本季度的財務細節。

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Thanks, Jeff, and good morning, everyone. In the next few slides, I'll provide some details on our financial results for the quarter and discuss our cash flows, liquidity and aspects of our balance sheet.

    謝謝,傑夫,大家早上好。在接下來的幾張幻燈片中,我將提供有關本季度財務業績的一些細節,並討論我們的現金流、流動性和資產負債表的各個方面。

  • On Slide 10, we show a summary of our results for the third quarter of 2022 with comparisons to the same period last year. Third quarter 2022 sales were $657 million, an increase of nearly 25% versus the third quarter of 2021. Gross profit for the third quarter was $38.6 million or 5.9% of sales. This compares to a gross loss of $8 million in the second quarter of 2021.

    在幻燈片 10 上,我們展示了 2022 年第三季度的業績摘要,並與去年同期進行了比較。 2022 年第三季度銷售額為 6.57 億美元,比 2021 年第三季度增長近 25%。第三季度毛利潤為 3860 萬美元,佔銷售額的 5.9%。相比之下,2021 年第二季度的總虧損為 800 萬美元。

  • Adjusted EBITDA in the quarter was $20.5 million compared to negative $33.9 million in the third quarter of 2021. The year-over-year improvement was driven primarily by favorable volume and mix, cost recoveries and manufacturing efficiencies, partially offset by continuing commodity and material cost headwinds, higher labor and energy costs as well as other inflationary pressures. On a U.S. GAAP basis, net loss for the quarter was $32.7 million compared to a net loss of $123 million in the third quarter of 2021.

    本季度調整後 EBITDA 為 2050 萬美元,而 2021 年第三季度為負 3390 萬美元。同比增長主要是由於有利的數量和組合、成本回收和製造效率,部分被持續的商品和材料成本所抵消逆風、更高的勞動力和能源成本以及其他通脹壓力。按美國公認會計原則計算,本季度淨虧損為 3270 萬美元,而 2021 年第三季度淨虧損為 1.23 億美元。

  • Excluding restructuring expense and other special items, adjusted net loss for the third quarter of 2022 was $29.5 million or $1.71 per diluted share compared to adjusted net loss of $106.4 million or $6.23 per diluted share in the third quarter of 2021. The year-over-year improvement resulted primarily from improved gross profit, reductions in selling, general, administrative and engineering expenses and lower income tax expense versus Q3 of 2021 when we recorded a significant charge related to valuation allowances on deferred tax assets in the United States.

    不計重組費用和其他特殊項目,2022 年第三季度調整後淨虧損為 2950 萬美元或稀釋後每股收益 1.71 美元,而 2021 年第三季度調整後淨虧損為 1.064 億美元或稀釋後每股收益 6.23 美元。與 2021 年第三季度相比,當我們記錄了與美國遞延稅項資產估值免稅額相關的重大費用時,與 2021 年第三季度相比,年度改善主要是由於毛利潤的提高、銷售、一般、行政和工程費用的減少以及所得稅費用的降低。

  • Our capital expenditures in the third quarter totaled $14.2 million compared to $20.4 million in the same period a year ago. We continue to have a disciplined focus on capital investments, and we are on track to keep CapEx below 4% of sales for the full year as we committed last quarter.

    我們第三季度的資本支出總額為 1420 萬美元,而去年同期為 2040 萬美元。我們繼續嚴格關注資本投資,我們有望按照上一季度的承諾將全年資本支出保持在銷售額的 4% 以下。

  • Moving to Slide 11. The charts on Slide 11 provides some additional insights into the key factors impacting our results for the third quarter. On the top line, favorable volume and mix, net of customer price adjustments, increased sales by $168 million versus the second quarter of 2021. Improving customer production volume year-over-year was the biggest driver and customer cost recoveries in the quarter also included in the volume and mix category.

    轉到幻燈片 11。幻燈片 11 上的圖表對影響我們第三季度業績的關鍵因素提供了一些額外的見解。最重要的是,在扣除客戶價格調整後,有利的數量和組合使銷售額與 2021 年第二季度相比增加了 1.68 億美元。同比提高客戶產量是最大的推動力,本季度的客戶成本回收也包括在內在音量和混合類別中。

  • Foreign exchange, mainly the Euro, reduced sales by $32 million versus the same period last year and the deconsolidation of a joint venture in Asia, which was completed in the first quarter of this year, further impacted sales by $6 million. For adjusted EBITDA, volume, mix and net price adjustments, including recoveries, drove a combined $69 million of improvement for the quarter. Lean initiatives in purchasing and manufacturing efficiency contributed $22 million, reductions in SGA&E added $7 million and savings from past restructuring actions added another $2 million. As for the headwinds in the quarter, higher material costs amounted to $35 million and higher wages, compensation-related costs, general inflationary pressures and other items reduced adjusted EBITDA by a combined $10 million in the quarter.

    外匯,主要是歐元,使銷售額與去年同期相比減少了 3200 萬美元,而今年第一季度完成的亞洲合資企業的分拆進一步影響了銷售額 600 萬美元。對於調整後的 EBITDA,數量、組合和淨價調整(包括回收率)推動了本季度總計 6900 萬美元的改善。採購和製造效率方面的精益舉措貢獻了 2200 萬美元,SGA&E 的減少增加了 700 萬美元,過去重組行動節省的資金又增加了 200 萬美元。至於本季度的不利因素,較高的材料成本達到 3500 萬美元,而較高的工資、薪酬相關成本、一般通脹壓力和其他項目使本季度調整後的 EBITDA 合計減少了 1000 萬美元。

  • Moving to Slide 12. Looking at these same key operating measures and drivers for the first 9 months of the year, sales increased 8.5% compared to the same period in 2021. The increase was driven primarily by improvements in volume, mix and net price adjustments with partial offsets from the deconsolidation of the Asian joint venture in the first quarter and unfavorable foreign exchange. For adjusted EBITDA, significant improvements from positive volume and mix, net price adjustments, manufacturing and purchasing efficiencies, lower SGA&E and restructuring savings were more than offset by increased material costs, which have now reached $117 million in the first 9 months of this year as well as higher wages and general inflation.

    轉到幻燈片 12。看看今年前 9 個月的這些相同的關鍵運營措施和驅動因素,銷售額與 2021 年同期相比增長了 8.5%。增長主要是由於銷量、組合和淨價調整的改善部分抵消了第一季度亞洲合資企業的分拆和不利的外匯。對於調整後的 EBITDA,正數量和組合、淨價格調整、製造和採購效率、較低的 SGA&E 和重組節省的顯著改善被增加的材料成本所抵消,今年前 9 個月已達到 1.17 億美元,因為以及更高的工資和普遍的通貨膨脹。

  • Turning to Slide 13. In terms of cash flows, cash used by operations during the 3 months ended September 30 was approximately $10 million, driven primarily by increases in inventory and tooling receivables. With CapEx of approximately $14 million, as mentioned earlier, we had a modest net free cash outflow of approximately $24 million in the quarter. As a result, we ended September with a still solid cash balance of $231 million.

    轉到幻燈片 13。就現金流而言,截至 9 月 30 日的 3 個月內,運營所使用的現金約為 1000 萬美元,主要是由於庫存和應收工具的增加。如前所述,資本支出約為 1400 萬美元,本季度我們的自由現金流量淨流出量約為 2400 萬美元。因此,我們在 9 月份結束時仍擁有 2.31 億美元的穩健現金餘額。

  • Availability on our revolving credit facility, which still remains undrawn was $156 million at quarter end, resulting in total liquidity of $387 million as of September 30, 2022. From a liquidity perspective, based on current expectations for light vehicle production and customer demand for our products, we expect our current solid cash balance and access to flexible credit facilities will provide sufficient resources to support our ongoing operations and the execution of planned strategic initiatives for the foreseeable future.

    截至 2022 年 9 月 30 日,我們尚未提取的循環信貸額度的可用性為 1.56 億美元,總流動性為 3.87 億美元。從流動性角度來看,基於當前對輕型汽車生產的預期和客戶對我們的需求產品,我們預計我們目前穩健的現金餘額和靈活的信貸額度將提供足夠的資源來支持我們的持續運營和在可預見的未來執行計劃的戰略舉措。

  • Separately, the company's ability to meet its debt service requirements for the next 12 months is contingent upon our ability to refinance our term loan facility. We are continuing discussions with certain investors with respect to potential refinancing alternatives. And while these discussions are ongoing and have been constructive, the company has not yet reached an agreement for refinancing its capital structure, and there can be no assurances that such an agreement will be reached. Beyond that, we won't be providing any further details at this time.

    另外,公司在未來 12 個月內滿足其償債要求的能力取決於我們為定期貸款融資的能力。我們正在繼續與某些投資者就潛在的再融資方案進行討論。儘管這些討論仍在進行中並且具有建設性,但該公司尚未就其資本結構再融資達成協議,並且無法保證會達成這樣的協議。除此之外,我們目前不會提供任何進一步的細節。

  • That concludes my prepared remarks. So let me hand it back over to Jeff.

    我準備好的發言到此結束。所以讓我把它交給傑夫。

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Thanks, Jon. And to wrap up our discussion this morning, I'd like to touch on our ongoing efforts to further improve our cost structure and then update you on the outlook for the full year.

    謝謝,喬恩。為了結束今天上午的討論,我想談談我們為進一步改善成本結構所做的持續努力,然後向您介紹全年的展望。

  • So if you'd please turn to Slide 15. We're continuing our focus on reducing costs and rightsizing our operations where necessary. These efforts have delivered more than $100 million in savings per year over the past 3 years and already $86 million in the first 9 months of this year. As conditions in our markets around the world remain challenging, we're continuing evaluating our business and seeking ways to improve and further optimizing our operational footprint.

    因此,如果您願意,請轉到幻燈片 15。我們將繼續專注於降低成本並在必要時調整我們的運營規模。這些努力在過去 3 年中每年節省了超過 1 億美元,今年前 9 個月已經節省了 8600 萬美元。由於我們在世界各地的市場狀況仍然充滿挑戰,我們正在繼續評估我們的業務並尋求改進和進一步優化我們的運營足蹟的方法。

  • To be clear, all options are on the table. We have made good progress and completed a number of cost reduction and rightsizing initiatives this year, as outlined on the slide, and we expect to complete the remaining projects in 2023. In the remaining months of 2022 and into next year, we expect the rate of inflation to slow and our cost reductions, manufacturing efficiencies and enhanced commercial agreements should allow us to further expand margins and improve cash flow.

    需要明確的是,所有選項都擺在桌面上。正如幻燈片中所述,我們今年取得了良好進展並完成了多項降低成本和調整規模的舉措,我們預計將在 2023 年完成剩餘的項目。在 2022 年剩餘的幾個月和明年,我們預計該比率通貨膨脹放緩以及我們的成本降低、製造效率和增強的商業協議應該使我們能夠進一步擴大利潤並改善現金流。

  • Turning to Slide 16. In terms of our 2022 guidance, we are trimming our full year estimate for sales and adjusted EBITDA, factoring in the results for the first 9 months of the year, which fell short of our original expectations, primarily due to continued variability in our customers' schedules and weak production volumes. We now expect full year sales in the range of $2.5 billion to $2.6 billion and adjusted EBITDA in the range of $45 million to $50 million. So the revised range remains very near the low end of our original guidance range for adjusted EBITDA despite the disappointing production volume.

    轉到幻燈片 16。就我們 2022 年的指導而言,我們正在下調對銷售額和調整後 EBITDA 的全年估計,並考慮到今年前 9 個月的業績,這低於我們最初的預期,主要是由於持續客戶日程安排的可變性和疲軟的產量。我們現在預計全年銷售額在 25 億美元到 26 億美元之間,調整後的 EBITDA 在 4500 萬美元到 5000 萬美元之間。因此,儘管產量令人失望,但修訂後的範圍仍然非常接近我們調整後 EBITDA 原始指導範圍的低端。

  • In addition, the midpoint of these ranges suggest a significant sequential improvement in adjusted EBITDA margin for the fourth quarter, an improvement we expect to carry forward and build upon into 2023. While there is still a lot of uncertainty in the global economy and in our industry, we continue to successfully manage the aspects of our business that we can control. Our cost structure has improved significantly and is still improving. Our manufacturing operations are running as efficiently as they ever have, and we continue to fulfill our end of the bargain with our customers, delivering quality products on time and supporting their strategic initiatives and objectives with our technology and innovation.

    此外,這些範圍的中點表明第四季度調整後 EBITDA 利潤率環比顯著改善,我們預計這一改善將延續到 2023 年。儘管全球經濟和我們的行業,我們繼續成功地管理我們可以控制的業務方面。我們的成本結構已顯著改善,並且仍在改善。我們的製造業務以前所未有的效率運行,我們將繼續履行與客戶的約定,按時交付優質產品,並通過我們的技術和創新支持他們的戰略舉措和目標。

  • I want to thank our global team of employees for their continued dedication and their commitment to delivering for our customers and other stakeholders in this challenging environment. I also want to thank our customers for their continued trust, confidence and their support in managing through commodity inflation. However, as the weakness and volatility of customer production volumes continue, we will aggressively pursue further commercial enhancements to offset volume shortfalls and related stranded costs as well as ongoing inflationary pressures.

    我要感謝我們的全球員工團隊在這個充滿挑戰的環境中持續奉獻和承諾為我們的客戶和其他利益相關者提供服務。我還要感謝我們的客戶在應對商品通脹方面的持續信任、信心和支持。然而,隨著客戶產量持續疲軟和波動,我們將積極尋求進一步的商業改進,以抵消產量不足和相關的擱淺成本以及持續的通脹壓力。

  • Despite all the noise and uncertainty in our industry, I'm confident that the innovative products, sustainable solutions and value that we're providing to our customers will ultimately be fairly compensated. This will enable us to drive increasing long-term value, not only for our customers, but for all of our stakeholder groups, including our employees, communities, suppliers and our investors.

    儘管我們的行業充滿了噪音和不確定性,但我相信我們為客戶提供的創新產品、可持續解決方案和價值最終將得到公平補償。這將使我們能夠推動增加長期價值,不僅為我們的客戶,而且為我們所有的利益相關者群體,包括我們的員工、社區、供應商和我們的投資者。

  • This concludes our prepared comments. So let's open up the call for Q&A.

    我們準備好的評論到此結束。因此,讓我們打開問答電話。

  • Operator

    Operator

  • (Operator Instructions) Now first question coming from the line of Michael Ward with Benchmark.

    (操作員說明)現在第一個問題來自 Michael Ward 與 Benchmark 的對話。

  • Michael Patrick Ward - MD & Senior Analyst

    Michael Patrick Ward - MD & Senior Analyst

  • Jeff, on the fourth earnings call, the company cited $1 billion lump sum payments to suppliers or for supplier settlements. In addition, it said it was not just for commodities, but for other things like disruption and production schedules. I think Cooper has the highest or among the highest exposure to Ford on a relative basis. Can you walk us through that process? I think you mentioned in your comments that part of those settlements were implemented and realized. I mean, is the type of thing where the material costs are kind of straightforward. And then with the production disruption and some of the other stuff, the freight, it sounds like there are several buckets. Am I reading that correctly?

    傑夫,在第四次財報電話會議上,該公司引用了 10 億美元的一次性付款給供應商或供應商結算。此外,它表示這不僅適用於大宗商品,還適用於其他方面,例如中斷和生產計劃。我認為庫珀在相對基礎上對福特的曝光率最高或最高。你能引導我們完成這個過程嗎?我認為您在評論中提到,這些解決方案的一部分已經實施和實現。我的意思是,是那種材料成本很簡單的東西。然後隨著生產中斷和其他一些東西,貨運,聽起來好像有幾個桶。我讀對了嗎?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • You're correct, Mike. The first bucket that we've been talking about specifically this year is obviously the raw material component of the cost buckets, if you will, and we are pleased that we've completed those negotiations really with all of our customers. Many, we have now indexing contracts in place. Others, we have quarterly surcharges in place that address the material cost inflation that we've been bearing quite frankly, for a number of months. So I would say, consider the negotiation related to material closed and going forward, we expect that we'll be at the -- above the high end of our recovery that we've had historically. So think about 70% recovery of all raw material inflation going forward.

    你是對的,邁克。我們今年特別討論的第一個桶顯然是成本桶的原材料部分,如果你願意的話,我們很高興我們已經真正完成了與所有客戶的談判。很多,我們現在已經有了索引合同。其他人,我們有季度附加費,以解決我們幾個月來一直坦率承受的材料成本膨脹問題。所以我想說,考慮到與材料相關的談判已經結束並繼續推進,我們預計我們將處於 - 高於我們歷史上復甦的高端。因此,請考慮未來所有原材料通脹的 70% 恢復。

  • Of course, when it goes the other way, then we share that back with the customer. So very pleased with how that's all transpired. And as I mentioned, I thank our customers for working with us and allowing us to get to a point where we think it's sustainable. Your other question is the bucket related to smart stop, labor, freight, energy costs and the like. Those negotiations continue. Those are typically handled more in terms of surcharges with customers, and I would expect us to continue to recover more and more of that into '23. That was in my prepared remarks.

    當然,當情況相反時,我們會與客戶分享。非常高興這一切是如何發生的。正如我所提到的,我感謝我們的客戶與我們合作,讓我們達到了我們認為可持續的地步。您的另一個問題是與智能停車、人工、貨運、能源成本等相關的問題。這些談判仍在繼續。這些通常在與客戶的附加費方面處理得更多,我希望我們在 23 年繼續收回越來越多的附加費。那是在我準備好的評論中。

  • So I think that we're confident that they're going to work with us to help recover those shortfalls. But -- it's still a very challenging environment. We would really like if we had our magic wand out there, we would waive it. And just if the volumes would have hit per the releases in the third and fourth quarter, we'd have a much different conversation right now. But unfortunately, the volumes, as I said in my prepared remarks, continue to be short of the releases that are out there, and that's causing even more headwind and hence, more challenging conversations with our customers going forward.

    所以我認為我們有信心他們將與我們合作以幫助彌補這些不足。但是——這仍然是一個非常具有挑戰性的環境。如果我們有我們的魔杖,我們真的很想放棄它。如果第三季度和第四季度的發行量會達到預期,我們現在的對話就會大不相同。但不幸的是,正如我在準備好的評論中所說,這些數量仍然缺少現有的版本,這導致了更大的阻力,因此與我們的客戶進行更具挑戰性的對話。

  • Michael Patrick Ward - MD & Senior Analyst

    Michael Patrick Ward - MD & Senior Analyst

  • So when I look at the bridge analysis, Jon, on your Chart 12, and it had $117 million in material economics through the first 9 months. Is that money that will be recovered? Or is -- because I think you mentioned that the recoveries are included in the volume mix, correct? So is that $117 million ---

    因此,當我查看您的圖表 12 上的橋樑分析時,喬恩,它在前 9 個月的物質經濟價值為 1.17 億美元。這筆錢會收回嗎?或者是——因為我認為你提到恢復包含在體積組合中,對嗎? 1.17億美元也是如此——

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Yes, Mike, the $117 million on the bridge page there is the gross commodity costs. The recoveries, you're right, we include those in the volume and mix bucket as we've historically included price in those rows of those charts. So as Jeff mentioned, you can think it in terms of being around that 70-plus percent of recovery on that $117 million, both from a current period perspective as well as some catch-up on 2021 commodity inflation that we're able to call back this year.

    是的,邁克,橋頁上的 1.17 億美元是商品總成本。回收,你是對的,我們將它們包括在數量和混合桶中,因為我們歷來將價格包括在這些圖表的這些行中。因此,正如傑夫所提到的,您可以認為,從當前時期的角度來看,以及我們可以稱之為 2021 年商品通脹的一些追趕,這 1.17 億美元的複蘇率約為 70% 以上今年回來。

  • Michael Patrick Ward - MD & Senior Analyst

    Michael Patrick Ward - MD & Senior Analyst

  • Okay. So you recovered part of the $117 million but not all of it. So part of that will come over the next couple of quarters?

    好的。所以你收回了 1.17 億美元的一部分,但不是全部。那麼其中一部分將在接下來的幾個季度中出現?

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Yes. There's kind of a quarter delay, perhaps a 2-quarter delay as those index contracts reset and then you're doing a look back period on the previous quarter or two to do recovery mechanism.

    是的。有一個季度的延遲,也許是兩個季度的延遲,因為這些指數合約重置,然後你正在回顧上一季度或兩個季度以建立恢復機制。

  • Michael Patrick Ward - MD & Senior Analyst

    Michael Patrick Ward - MD & Senior Analyst

  • Okay. And on the general inflation and other, that $69 million, would that include any of the impact from the start-stop?

    好的。就總體通貨膨脹和其他方面而言,這 6900 萬美元是否包括起停帶來的任何影響?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • That would be not necessarily in that bucket. What it would include is your general economics, your labor inflation, transportation costs, utility bills going up. The start stops, those are really inherent in the cost of goods sold manufacturing bucket. They degrade the lean activities and the efficiencies we're able to gather. So they kind of go against that area as opposed to the other bucket.

    那不一定在那個桶裡。它將包括您的總體經濟狀況、勞動力通脹、運輸成本、水電費上漲。起止,那些真正內在的製造成本的商品銷售。它們降低了精益活動和我們能夠收集的效率。所以他們有點反對那個區域而不是另一個桶。

  • Michael Patrick Ward - MD & Senior Analyst

    Michael Patrick Ward - MD & Senior Analyst

  • Okay. So that could be over and above the material recoveries for the next 2 quarters as we cover in 2023. So we're up north of $100 million of potential recoveries.

    好的。因此,這可能超出我們在 2023 年涵蓋的未來兩個季度的物質回收量。因此,我們的潛在回收量超過了 1 億美元。

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • That's the goal, yes.

    這就是目標,是的。

  • Michael Patrick Ward - MD & Senior Analyst

    Michael Patrick Ward - MD & Senior Analyst

  • Okay. Jon, just one last question. On the term loan, is there any significance that it is now current as it relates to your -- the refinancing activities?

    好的。喬恩,最後一個問題。關於定期貸款,它現在與您的再融資活動相關是否有任何意義?

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Today is technically the date the term loan goes current. But I'll emphasize that that's -- as of right now, it's a date on the calendar. We're still engaged in those constructive conversations with investors to look at the capital structure and arrive at a potential refinancing alternative. But Mike, there's no impact on our debt agreements right now because that is current or anything like that. There's no default situation. It's just the -- that it's now within 12 months of coming due.

    從技術上講,今天是定期貸款生效的日期。但我要強調的是——截至目前,這是日曆上的日期。我們仍在與投資者進行建設性對話,以研究資本結構並找到潛在的再融資方案。但是邁克,現在對我們的債務協議沒有影響,因為那是當前的或類似的。沒有默認情況。這只是 - 它現在在到期後的 12 個月內。

  • Operator

    Operator

  • And our next question coming from the line of Steve Ferazani with Sidoti.

    我們的下一個問題來自 Steve Ferazani 和 Sidoti。

  • Stephen Michael Ferazani - Research Analyst

    Stephen Michael Ferazani - Research Analyst

  • I do want to follow up a little bit of the previous questions because I'm looking at the EBITDA margin in North America, where you did see some growth, and I would have expected a little bit more improvement. I'm trying to get a sense, is that the continued inflationary pressures? Is that the starting and stopping that you've added labor and you're just not getting the volume that you were expecting? Trying to get a sense of what we're seeing in that margin line.

    我確實想跟進前面的一些問題,因為我正在研究北美的 EBITDA 利潤率,在那裡你確實看到了一些增長,我本來預計會有更多的改善。我想弄明白,這是持續的通脹壓力嗎?那是你增加了勞動力的開始和停止,而你只是沒有得到你期望的數量嗎?試圖了解我們在該邊緣線中看到的內容。

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Yes, Steve, this is John. I'll take that. North America was certainly pressured along with the entire company on the commodity side as well as those other inflationary pressures that aide into the -- what you would have otherwise expected from the benefit of the uplift in volume and mix activity during the quarter year-over-year. So if I look across that $35 million of commodity inflation for the quarter, nearly $15 million of that was hit in North America.

    是的,史蒂夫,這是約翰。我會接受的。北美和整個公司在大宗商品方面當然受到壓力,以及其他通脹壓力 - 否則你會從本季度銷量和混合活動的提升中預期的結果-年。因此,如果我查看本季度 3500 萬美元的商品通脹,其中近 1500 萬美元在北美受到打擊。

  • Similarly, within that -- the general economics that are really higher than the $10 million because there's pluses and minuses in that other row on the bridge, there's over $6 million of what I'll call the normal wage/utilities/transportation, inflationary pressures hitting the North American market. So they're doing well when the volumes are coming back, as Jeff indicated. But those other inflationary pressures are certainly eating into the performance there.

    同樣,在這之中——總體經濟學確實高於 1000 萬美元,因為橋上的另一排有優點和缺點,有超過 600 萬美元的我稱之為正常工資/公用事業/運輸,通貨膨脹壓力衝擊北美市場。因此,正如 Jeff 所指出的那樣,當交易量恢復時,他們表現良好。但那些其他通脹壓力肯定會影響那裡的表現。

  • Stephen Michael Ferazani - Research Analyst

    Stephen Michael Ferazani - Research Analyst

  • You see here -- I mean based on the bridge, you're not seeing much easing at this point, some of that might be what's coming out of inventory, not quite clear. But are you getting any sense beyond energy that there's some easing to your inflationary pressures where you can start really catching up beyond just the contracts you have in place now?

    你在這裡看到 - 我的意思是基於橋樑,你在這一點上沒有看到太多的放鬆,其中一些可能是庫存中出現的,不太清楚。但是,除了能源之外,您是否有任何感覺,您的通脹壓力有所緩解,您可以開始真正趕上您現在擁有的合同?

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Steve, let me just clarify. Are you speaking in terms of commodities or all the other inflationary buckets?

    史蒂夫,讓我澄清一下。你說的是大宗商品還是所有其他通脹桶?

  • Stephen Michael Ferazani - Research Analyst

    Stephen Michael Ferazani - Research Analyst

  • Throwing them all in. I'll leave it open for you.

    把它們都扔進去。我會為你打開它。

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Okay. Well, certainly, the rate of increase of inflation is subsiding somewhat, but it's certainly not going down and you're not experiencing any deflationary benefits or tailwinds for us in the quarter. Looking ahead, perhaps there's some longer-term commodity prices that are projected to come down. But as of right now, the inflation is still running high, certainly relative to year-over-year as we see it.

    好的。嗯,當然,通貨膨脹的增長率在一定程度上有所下降,但它肯定不會下降,而且你在本季度沒有遇到任何通貨緊縮的好處或順風。展望未來,也許有一些較長期的商品價格預計會下跌。但截至目前,通貨膨脹率仍在高位運行,當然與我們所看到的同比情況相比。

  • And as you know well, energy costs in terms of natural gas and electricity and labor inflation, those are sticky and those don't tend to revert back and deflate. So and we'll be facing those for a long time here now.

    如您所知,天然氣和電力以及勞動力通脹方面的能源成本具有粘性,並且不會恢復和收縮。所以,我們現在將在這裡面對這些很長一段時間。

  • Stephen Michael Ferazani - Research Analyst

    Stephen Michael Ferazani - Research Analyst

  • In previous quarters, you talked about cash on the balance sheet going to remain relatively stable this year despite the challenging environment. We did see it come down a bit this quarter. It looks almost entirely related to higher inventory. How are you thinking about both cash management over the next couple of quarters, assuming we're maintaining a sort of challenging environment?

    在前幾個季度,您談到資產負債表上的現金今年將保持相對穩定,儘管環境充滿挑戰。我們確實看到它在本季度有所下降。它看起來幾乎完全與更高的庫存有關。假設我們正在維持一種具有挑戰性的環境,您如何看待未來幾個季度的現金管理?

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • I'd characterize it this way, Steve, that cash is top of mind for everybody in the company. We're continuing to monitor all discretionary spending and preserve Cooper-Standard cash and protect the balance sheet, if you will. And while we don't typically provide guidance on free cash flow, we do obviously expect an increase in EBITDA in Q4 here. And the typical seasonality where we can draw down inventories as production levels drop towards the end of the year, we'll definitely be a positive benefit to cash flow in the quarter.

    我會這樣描述它,史蒂夫,現金是公司每個人的頭等大事。如果您願意,我們將繼續監控所有可自由支配的支出並保留 Cooper-Standard 的現金並保護資產負債表。雖然我們通常不提供自由現金流的指導,但我們顯然預計第四季度的 EBITDA 會增加。隨著生產水平在年底下降,我們可以減少庫存的典型季節性,我們肯定會對本季度的現金流產生積極的影響。

  • But keep in mind, Q4, we do have interest payments to the tune of about $30 million on both our unsecured notes and our senior secured notes that hit in November and December. So we'll have to manage through the working capital side offset by those interest coupons in Q4.

    但請記住,第四季度,我們在 11 月和 12 月的無擔保票據和優先擔保票據上確實支付了約 3000 萬美元的利息。因此,我們將不得不通過第四季度的這些利息券抵消的營運資金方面進行管理。

  • Stephen Michael Ferazani - Research Analyst

    Stephen Michael Ferazani - Research Analyst

  • Great. And then if I could just get one more in, in terms of any updates in terms of Fortrex marketing outside of your typical customer base?

    偉大的。然後,如果我能再加入一個,就您的典型客戶群之外的 Fortrex 營銷方面的任何更新而言?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Steve, this is Jeff. We continue to march towards the launch of the first shoe deal. I think that's been pushed into the early second quarter, but still basically on target what we've talked about. And then we are having continuing discussions with that particular customer about expanding the opportunities, but we don't have anything to share specifically related to that other than to tell you that those conversations continue to happen at a pretty good pace.

    史蒂夫,這是傑夫。我們繼續朝著推出第一筆鞋子交易的方向前進。我認為這已被推到第二季度初,但仍然基本上符合我們所談論的目標。然後我們正在與該特定客戶繼續討論擴大機會,但除了告訴您這些對話繼續以相當好的速度進行之外,我們沒有任何與此相關的具體內容可分享。

  • Operator

    Operator

  • And our next question coming from the line of Joe Farricielli from Cantor.

    我們的下一個問題來自 Cantor 的 Joe Farricielli。

  • Joseph James Farricielli - Director of Credit Research

    Joseph James Farricielli - Director of Credit Research

  • Could you tell us or give an update on Brazil? I recall Ford was closing a plant there, and you had some restructuring expenses in South America. Any update specific to that and restructuring in general?

    您能告訴我們或提供有關巴西的最新情況嗎?我記得福特在那里關閉了一家工廠,而你在南美有一些重組費用。任何特定的更新和一般的重組?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes, this is Jeff. On Brazil, our teams have done a very good job of reducing costs and also managing the price recoveries from our customers there. We do expect as we look forward to '23 that they will be in a pretty healthy position, assuming they can continue to close the deals with the customers that they have to close here in the quarter, but we are encouraged by the potential upswing in profitability in Brazil.

    是的,這是傑夫。在巴西,我們的團隊在降低成本和管理當地客戶的價格回收方面做得非常好。我們確實希望,因為我們期待 23 年,他們將處於一個相當健康的位置,假設他們可以繼續與他們必須在本季度完成的客戶達成交易,但我們對潛在的上漲感到鼓舞巴西的盈利能力。

  • Joseph James Farricielli - Director of Credit Research

    Joseph James Farricielli - Director of Credit Research

  • And that was a co-located. You're on a customer -- in a customer plan, correct?

    那是一個共同地點。你在一個客戶身上——在一個客戶計劃中,對嗎?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • We have a variety of manufacturing footprints there. The one you're speaking of with Ford is history. So what I'm talking about is what's left and the fact that we'll be profitable in '23 based on all the work that's been done there this year. I think what you're referring to is my comments in previous quarters about all options are on the table as it relates to that business footprint. I'm encouraged that as I sit here today, I think there is a way forward for us in Brazil, and it's directly related to the effort of that management team there and the leadership to get the business turned around. So we're pleased about that.

    我們在那裡有各種各樣的製造足跡。你所說的福特是歷史。所以我要說的是剩下的,以及基於今年在那裡完成的所有工作,我們將在 23 年盈利的事實。我認為您所指的是我在前幾個季度對所有選項的評論,因為它與該業務足蹟有關。令我感到鼓舞的是,當我今天坐在這裡時,我認為我們在巴西有一條前進的道路,這與那裡的管理團隊的努力以及使業務好轉的領導層直接相關。所以我們對此感到高興。

  • Joseph James Farricielli - Director of Credit Research

    Joseph James Farricielli - Director of Credit Research

  • Okay. That's great. And then last question. Is Goldman still engaged as your adviser for the refinancing?

    好的。那太棒了。然後最後一個問題。高盛是否仍被聘為您的再融資顧問?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes.

    是的。

  • Operator

    Operator

  • And our next question coming from the line of Brian DiRubbio with Baird.

    我們的下一個問題來自Brian DiRubbio 與Baird 的對話。

  • Brian Vincent DiRubbio - Former Research Analyst

    Brian Vincent DiRubbio - Former Research Analyst

  • Jeff and John, just a couple of questions for me. Can you, Jeff, maybe help us get a sense what operating cadence or the operating rate of the plants have been over the last quarter versus maybe at the worst point of the production issues?

    傑夫和約翰,對我來說只是幾個問題。傑夫,您能否幫助我們了解上一季度工廠的運營節奏或開工率與生產問題最糟糕的時期相比如何?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes, I think the volume over the course of 2022 continues to be up versus what we saw in 2021, as Jon talked to you about. My biggest concern is that especially related to the third quarter and the fourth quarter, there was a lot of conversation from our customers about the strength of the third quarter and the strength of the fourth quarter, and it was frankly reflected in the releases. And I'm really talking about here in North America with these comments.

    是的,我認為 2022 年的交易量與我們在 2021 年看到的相比繼續上升,正如 Jon 和你所說的那樣。我最擔心的是,尤其是在第三季度和第四季度,我們的客戶有很多關於第三季度和第四季度實力的談話,並且坦率地反映在發布中。我真的是在北美這裡談論這些評論。

  • And then in both instances, the actual volumes fell considerably short. So when you look at an inventory number that's up considerably from what we would have expected it to be on these particular revenue points, it's directly related to the fact that the releases were there and then the volumes were pulled out and didn't happen. So that's part of the challenge. And look, we know that our customers are doing the best they can. I'm just stating the facts.

    然後在這兩種情況下,實際交易量都大幅下降。因此,當您查看與我們在這些特定收入點上預期的庫存數量相比大幅增加時,這與發布存在然後數量被拉出並且沒有發生的事實直接相關。所以這是挑戰的一部分。看,我們知道我們的客戶正在盡其所能。我只是陳述事實。

  • And so that's -- that volatility, if you will, continues to impact us, and I'm sure other suppliers as it relates to the efficiencies that we really need the stability that we really need out of the releases. And if we get that stability, and then most importantly, if it's up, then that results in a much healthier environment. Unfortunately, that's not where we are. So let's see how '23 takes off. We expect that many of the supply chain issues that that have hit us the last few years are going to be subsiding based on most reports.

    所以這就是——如果你願意的話,這種波動性會繼續影響我們,我相信其他供應商因為它與我們真正需要的效率有關,而我們確實需要從發布中獲得真正需要的穩定性。如果我們獲得了這種穩定性,然後最重要的是,如果它上升了,那麼就會產生一個更健康的環境。不幸的是,這不是我們所在的地方。因此,讓我們看看 23 年如何起飛。我們預計,根據大多數報告,過去幾年困擾我們的許多供應鏈問題將會消退。

  • So I'm hoping that will add a level of stability to the release process. And then that helps us get the right amount of labor, get the right amount of inventory and be as efficient as we can on the manufacturing side. So hopefully, that answers your question.

    所以我希望這將為發布過程增加一定程度的穩定性。然後,這有助於我們獲得適量的勞動力,獲得適量的庫存,並在製造方面盡可能高效。所以希望這能回答你的問題。

  • Brian Vincent DiRubbio - Former Research Analyst

    Brian Vincent DiRubbio - Former Research Analyst

  • No, that helps. Jon, last earnings call, you had mentioned that there was other potential opportunities for sale leasebacks. Just want to see if there's any updated thoughts on that front?

    不,這有幫助。喬恩,上次財報電話會議,你提到還有其他潛在的售後回租機會。只是想看看在這方面是否有任何更新的想法?

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Yes, Brian, thanks for the question. Nothing new to report on that front. We continue to look at those opportunities to capital (inaudible) 0:38:47 capital. We haven't entered into any sale-leaseback transactions in -- since we did the large one in Europe in Q1. But those options are still on the table for us. And if it makes sense economically and the cap rates are such that they plug into our cost of capital nicely and don't burn in ongoing operations with significant lease expense to unlock that capital, then we'll go ahead and enter into those. But for now, we're just continuing to investigate opportunities across the entire real estate footprint.

    是的,布賴恩,謝謝你的問題。在這方面沒有什麼新的報導。我們繼續關注那些資本(聽不清)0:38:47 資本的機會。自從我們在第一季度在歐洲進行了大型交易以來,我們還沒有進行任何售後回租交易。但這些選項仍然擺在我們面前。如果它在經濟上是有意義的,並且上限利率能夠很好地融入我們的資本成本,並且不會消耗大量的租賃費用來釋放資本,那麼我們將繼續進行這些操作。但就目前而言,我們只是繼續調查整個房地產足蹟的機會。

  • Brian Vincent DiRubbio - Former Research Analyst

    Brian Vincent DiRubbio - Former Research Analyst

  • Okay. And switching gears, just focusing on Europe for a second. Is the biggest headwind that you're experiencing there? Is it just the operating cadence? Or is it the energy cost? Just trying to get a sense of what you need to occur to get Europe from turning EBITDA positive?

    好的。換個角度,只關注歐洲一秒鐘。您在那裡遇到的最大逆風是什麼?僅僅是操作節奏嗎?還是能源成本?只是想了解讓歐洲從 EBITDA 轉為正數需要做些什麼?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes, this is Jeff. So as we've said before, we recognize we have some fixed cost issues that we ultimately need to address in Europe, and we have plans to do that. So that's kind of under the bucket of what we can control. We also have a significant challenge there with many of our prices, frankly, as we've absorbed a lot of the -- and I'm talking about the non-raw material inflation at this point has really eaten away what margins we did have in Europe.

    是的,這是傑夫。因此,正如我們之前所說,我們認識到我們最終需要在歐洲解決一些固定成本問題,我們有計劃這樣做。所以這有點在我們可以控制的範圍內。坦率地說,我們的許多價格也面臨著重大挑戰,因為我們已經吸收了很多——我說的是此時的非原材料通脹確實吞噬了我們確實擁有的利潤在歐洲。

  • And so we're having those conversations with customers, and I expect here over the next 30 to 60 days that those will become extremely pointed and extremely important as it relates to at least getting us to a point where we can see an improvement in our European business. The final point that's been a big challenge there, obviously, is the volumes, right? They have dropped off a cliff starting in the third quarter. And when you look at the macroeconomic challenges, the geopolitical challenges in Europe, it continues to create a significant headwind for everybody.

    因此,我們正在與客戶進行這些對話,我預計在接下來的 30 到 60 天內,這些對話將變得非常尖銳和非常重要,因為它至少涉及到我們可以看到我們的改進歐洲業務。顯然,最後一點是一個巨大的挑戰,是數量,對吧?他們從第三節開始就跌落懸崖。當你看到歐洲的宏觀經濟挑戰和地緣政治挑戰時,它繼續給每個人帶來巨大的逆風。

  • Hence, as what I said before, for us, all options are on the table for Europe, much like we've talked about Brazil. Ultimately, these businesses have to begin generating a return for us or the options are pretty clear. And so while we are hopeful that our customers will continue to agree with what we need in order to maintain a fair relationship there. We'll see how that goes over the course of the next several months, and we'll keep you posted.

    因此,正如我之前所說,對我們來說,歐洲的所有選擇都擺在桌面上,就像我們談到巴西一樣。最終,這些企業必須開始為我們帶來回報,否則選擇非常明確。因此,儘管我們希望我們的客戶將繼續同意我們的需求,以便在那里維持公平的關係。我們將在接下來的幾個月中看到情況如何,我們會及時通知您。

  • Brian Vincent DiRubbio - Former Research Analyst

    Brian Vincent DiRubbio - Former Research Analyst

  • Got it. Final question from me. As pertinent inflation, metal prices and other commodities have started to decline off their February peaks. If I'm hearing you correctly, is it now more of the just energy and labor that sort of replace the commodity inflation that's impacting the business?

    知道了。我的最後一個問題。由於相關的通貨膨脹,金屬價格和其他大宗商品已開始從 2 月份的高點回落。如果我沒聽錯的話,現在是不是更多的能源和勞動力取代了影響業務的商品通脹?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • It's Jeff. Well, obviously, when you talk about energy costs going up, I mean, that impacts a lot of buckets. But we are hopeful that when we talk about labor, when we talk about freight, when we talk about utilities that we're able to get to a deal in Europe with those customers that will allow us to at least get hole and hopefully start to make our way towards a positive business environment there. We can't continue to give away parts. It's just not feasible. And believe me, those conversations are happening. They're pointed. It's not personal. We just -- we got to get to a point where we're able to make money there and sustain it, and we're either going to do that or we're going to do something else.

    是傑夫。嗯,很明顯,當你談到能源成本上升時,我的意思是,這會影響很多水桶。但我們希望,當我們談論勞工,當我們談論貨運,當我們談論公用事業時,我們能夠在歐洲與那些客戶達成交易,這將使我們至少能夠找到漏洞並希望開始朝著那裡積極的商業環境邁進。我們不能繼續贈送零件。這是不可行的。相信我,這些對話正在發生。他們是尖的。這不是個人的。我們只是 - 我們必須達到能夠在那裡賺錢並維持它的地步,我們要么這樣做,要么我們要做其他事情。

  • Operator

    Operator

  • Our next question coming from the line of Kirk Ludtke with Imperial Capital.

    我們的下一個問題來自 Kirk Ludtke 與 Imperial Capital 的路線。

  • Kirk Ludtke - MD

    Kirk Ludtke - MD

  • Just a couple of follow-ups. With respect to the customer relationships, are these -- are you negotiating -- would you describe what you're negotiating as onetime price adjustments? Or is the nature of the relationship changing such that these material costs are becoming more of an automatic pass-through?

    只是一些後續行動。關於客戶關係,這些 - 你在談判 - 你會將你正在談判的內容描述為一次性價格調整嗎?還是這種關係的性質正在發生變化,以至於這些材料成本變得更像是一種自動傳遞?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes. For the material side of it, as we've talked before, we probably have 65% or so of our total company revenue is now indexed related to the raw material cost portion. So that's a significant improvement over where we were. The other ones are quarterly surcharges that really act in a similar way. So we're confident that those deals that we've cut are also sustainable, which is why we said earlier that we feel going forward that we're at a 70% recovery rate. I'll use the words that you just used, that's automatic going forward.

    是的。對於它的物質方面,正如我們之前所說,我們現在可能有 65% 左右的公司總收入與原材料成本部分相關。因此,與我們所處的位置相比,這是一個重大改進。其他的是季度附加費,實際上以類似的方式起作用。因此,我們相信我們削減的那些交易也是可持續的,這就是為什麼我們之前說我們覺得未來我們的回收率達到 70%。我會用你剛才說的話,那是自動前進的。

  • Whereas in the past, they've been ongoing price negotiations. So that's the substantial improvement or substantial change we've made really in the foundation of this business, and I feel very good about that. Related to those other costs of product that's in production, labor, freight, utilities, those things that everyone is dealing with going up. While you get to quote those costs on your new business going forward and the business that we've yet to launch would reflect those additional costs, the business that you have in production today requires you to go back and negotiate those recoveries separately, and that's what we're doing. And we expect that we'll have similar results as we look at our 2023 book of business in recovering at least our fair share of those other buckets.

    而在過去,他們一直在進行價格談判。所以這是我們在這項業務的基礎上真正做出的重大改進或重大改變,我對此感覺非常好。與生產中的其他產品成本、勞動力、運費、公用事業相關,每個人都在處理的那些事情正在上升。雖然您可以在未來的新業務中引用這些成本,而我們尚未推出的業務將反映這些額外成本,但您今天在生產中的業務要求您返回並單獨協商這些恢復,這就是我們在做什麼。我們預計,當我們查看 2023 年的業務賬簿時,我們將獲得類似的結果,至少恢復我們在其他桶中的公平份額。

  • Kirk Ludtke - MD

    Kirk Ludtke - MD

  • That's helpful. So it sounds like you've derisked the business. And would you say that the margins would be similar?

    這很有幫助。所以聽起來你已經放棄了這項業務。你會說利潤率會相似嗎?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes. I think we believe that we have reduced the volatility, we've reduced the risk, if you will, of raw material ups and downs. And that's good -- we believe it's good for the customer. We believe it's good for us, and that's positive. Related to those other buckets, you historically wouldn't have seen such large increases in labor and freight and so forth, energy costs certainly coming this winter, especially in Europe, although probably not as terrible as originally thought, still up.

    是的。我認為我們相信我們已經降低了波動性,如果你願意的話,我們已經降低了原材料漲跌的風險。這很好——我們相信這對客戶有好處。我們相信這對我們有好處,這是積極的。與其他水桶相關的是,從歷史上看,您不會看到勞動力和運費等方面出現如此大幅度的增長,能源成本肯定會在今年冬天到來,尤其是在歐洲,儘管可能沒有最初想像的那麼可怕,但仍然會上漲。

  • We believe that that it's fair to have those items on the table when we're discussing cost sharing and lean initiatives and VAVE and long-term contracts that you accepted LTAs in different environments. Those are all the things that are in the center of the table when you're having this conversation. And all we want is to keep something that's fair, and we are going to continue to reduce prices when costs are going up at the level they are and pretty straightforward.

    我們認為,當我們討論成本分攤和精益計劃以及 VAVE 和您在不同環境中接受 LTA 的長期合同時,將這些項目放在桌面上是公平的。當您進行此對話時,這些都是桌面中心的所有內容。我們想要的只是保持公平,當成本上升到相當簡單的水平時,我們將繼續降低價格。

  • Kirk Ludtke - MD

    Kirk Ludtke - MD

  • Got it. That's helpful. And then just one other. With respect to the production, specifically in the next couple of quarters in Europe, understand that inflation is still there. I'm just curious, have you -- are there any real risks to production like energy rationing that type of thing. I know it's hard to -- you don't have a crystal ball, but how do you think about that type of risk?

    知道了。這很有幫助。然後只是另一個。關於生產,特別是在歐洲接下來的幾個季度,通貨膨脹仍然存在。我只是好奇,你有沒有 - 對生產有任何真正的風險,比如能源配給這種類型的事情。我知道這很難——你沒有水晶球,但你如何看待這種風險?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes. I don't have a crystal ball, but I can tell you that I can read my current financial statements. And clearly, the revenue is suppressed. And I don't see anything in the near future that's going to change that. And so hence, these conversations about cost recovery and getting to a point where Europe can generate positive cash flow is more than we can do by ourselves. We need help from our customers to get a footprint and a sustainable foundation there that will allow us to continue to make positive gains related to cash flow in Europe until things return to normal. I have no idea when that is. So we're just treating it as if it's going to be bad for a while.

    是的。我沒有水晶球,但我可以告訴你,我可以閱讀我目前的財務報表。顯然,收入受到抑制。而且我認為在不久的將來不會有任何改變。因此,這些關於成本回收和歐洲可以產生正現金流的對話比我們自己做的要多。我們需要客戶的幫助才能在那裡獲得足跡和可持續發展的基礎,這將使我們能夠繼續在歐洲獲得與現金流相關的積極收益,直到一切恢復正常。我不知道那是什麼時候。所以我們只是把它當作它會在一段時間內變壞。

  • Kirk Ludtke - MD

    Kirk Ludtke - MD

  • Got it. But in terms of your customers' production levels, are you hearing about schedules being altered by actual rationing of energy?

    知道了。但就您客戶的生產水平而言,您是否聽說過實際的能源配給會改變時間表?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • No.

    不。

  • Operator

    Operator

  • The next question coming from the line of (inaudible) 0:49:45.

    下一個問題來自(聽不清)0:49:45。

  • Unidentified Analyst

    Unidentified Analyst

  • Most of my surrounding inflation were answered already. So, thank you. As it relates to labor though, are you able to hire the number of employees that you need at wages that are attractive to the company, just given the labor and inflationary environments?

    我周圍的大部分通貨膨脹已經得到了回答。所以謝謝。但是,由於它與勞動力有關,考慮到勞動力和通貨膨脹環境,您是否能夠以對公司有吸引力的工資僱用所需的員工數量?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • This is Jeff. I think in most markets, we have, but clearly, we have certain plants in certain states and in certain regions around the world that we think those headwinds are something that's going to need to be addressed on a long-term basis. So I think that whether you're working in retail or whether you're working in fast food or whether you're working in manufacturing, I think you kind of have a similar feeling right now that labor is tight. Costs are going up.

    這是傑夫。我認為在大多數市場,我們都有,但很明顯,我們在某些州和世界某些地區有某些工廠,我們認為這些不利因素是需要長期解決的。所以我認為,無論你是在零售業工作,還是在快餐業工作,還是在製造業工作,我想你現在都有一種類似的感覺,那就是勞動力很緊張。成本正在上升。

  • What we do is try to make sure that we provide the type of environment that's competitive for our employees and that they believe they have a long-term future that will help support their families. And that's what we try to make sure that we do. We aren't trying to pay the most, but we recognize that we have to pay a competitive wage. And so all of those wages for us virtually in every region have increased. I would say that we have at least gotten to a point where we have enough people lined up outside that we can feel like we can run the facilities the way we need to run them as long as we're willing to pay the wages that the market is demanding right now. So hopefully, that answers your question.

    我們所做的是努力確保我們為員工提供具有競爭力的環境類型,並確保他們相信他們有一個有助於養家糊口的長期未來。這就是我們試圖確保我們做到的。我們並沒有試圖支付最多,但我們認識到我們必須支付有競爭力的工資。因此,我們幾乎在每個地區的所有這些工資都增加了。我想說的是,我們至少已經到了這樣一個程度,即我們有足夠多的人在外面排隊,我們可以覺得只要我們願意支付工資,我們就可以按照我們需要的方式運營這些設施。市場現在要求很高。所以希望這能回答你的問題。

  • Unidentified Analyst

    Unidentified Analyst

  • Yes, that does. That does. And then as a second question I had. So SG&A this quarter came in at about $45 million, which is really well below where it's been historically, and it shows a lot of your cost-cutting initiatives are bearing fruit. Should we think of this, call it, roughly $45 million level as a new run rate? Or do you think that's going to go back up or change materially going forward?

    是的,確實如此。確實如此。然後作為我的第二個問題。因此,本季度的 SG&A 收入約為 4500 萬美元,遠低於歷史水平,這表明您的許多削減成本舉措正在取得成果。我們是否應該考慮一下,稱之為大約 4500 萬美元的新運行率?還是您認為這會回升或在未來發生重大變化?

  • Jonathan P. Banas - Executive VP & CFO

    Jonathan P. Banas - Executive VP & CFO

  • Ben, this is Jon. I'd say it's in the ballpark. The efforts that you described that we're continuing to look at all costs, not just SGA&E and make sure it's rightsized and rationalized for our current size and footprint will be ongoing. So we were continuing to look for further opportunities, not only at that SG&A row but across the full P&L. We'll continue to drive that down and make sure it is rightsized, as I mentioned.

    本,這是喬恩。我會說它在球場上。您所描述的努力,我們將繼續關注所有成本,而不僅僅是 SGA&E,並確保它的規模和合理化適合我們當前的規模和足跡。因此,我們繼續尋找更多機會,不僅在 SG&A 行,而且在整個損益表中。正如我所提到的,我們將繼續降低它並確保它的大小合適。

  • The only one thing I would call out in the quarter. When you're looking at the run rate, you also have to look at all of the compensation-related structures that we've got in place. And with the unfortunate continued pressure on production volumes overall, in our lowering of our guidance that we talked to you about a few minutes ago. The bonus plan for the year won't be at 100% payout. So you do see a slight decline in SGA&E related to taking that bonus level down to, call it, the 75% range. That would be not in your go-forward run rate.

    我在本季度唯一要說的一件事。當您查看運行率時,您還必須查看我們已經建立的所有與薪酬相關的結構。不幸的是,由於整體產量持續面臨壓力,我們降低了幾分鐘前與您交談過的指導。今年的獎金計劃不會是 100% 派息。因此,您確實看到與將獎金水平降低到 75% 範圍相關的 SGA&E 略有下降。那將不在您的前進速度中。

  • Unidentified Analyst

    Unidentified Analyst

  • Got it. That's very helpful. I appreciate that. That's it for me.

    知道了。這很有幫助。我很感激。對我來說就是這樣。

  • Operator

    Operator

  • And our last question in queue coming from the line of (inaudible) 0:53:17 with Beach Point Capital.

    我們在隊列中的最後一個問題來自 Beach Point Capital 的(聽不清)0:53:17。

  • Unidentified Analyst

    Unidentified Analyst

  • Most of my questions have been discussed. But I just wanted to talk about what initial thought you guys can share about how 2023 might look. You mention during the call that Q4 might be a better indication of run rate and wondering if you might provide guidance on how we could extrapolate forward.

    我的大部分問題都已經討論過了。但我只是想談談你們可以分享的關於 2023 年的初步想法。您在電話會議中提到,第四季度可能是運行率的更好指示,並想知道您是否可以就我們如何向前推斷提供指導。

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes, this is Jeff. I think I said during the prepared remarks that if you look at the margin improvement in the fourth quarter, we expect to continue to build on that in '23. That's kind of where we're leaving it today as it relates to '23. Clearly, we've talked a lot of about volume, we've talked a lot about release versus actual production. We need stability in '23. We need numbers that we can take to the bank and run our plans off of, I'm hopeful that that's what we're going to get. So, allow us to, you know, get a little closer here to the end of the year when our customer starts to put out numbers that are hopefully accurate for the quarter.

    是的,這是傑夫。我想我在準備好的評論中說過,如果你看看第四季度的利潤率改善,我們預計將在 23 年繼續在此基礎上再接再厲。這就是我們今天要離開的地方,因為它與 23 年有關。顯然,我們已經談了很多關於數量,我們談了很多關於發布與實際生產的問題。我們需要在 23 年保持穩定。我們需要可以帶到銀行並執行計劃的數字,我希望這就是我們將要得到的。所以,讓我們,你知道,到今年年底,我們的客戶開始發布希望在本季度準確的數字時,離這裡更近一點。

  • Clearly, when you look at some of the folks out there that do forecasting for a living, they continue to talk about some softening versus what they originally thought '23 was going to be. So that's really what we're seeing right now. And it would be too early for us to assume what each of our customers are going to do. And so we usually wait until the call to talk about the year-end and February, March time period, and then we'll have a better understanding of what '23 top line is going to going to look like.

    顯然,當你看到一些以預測為生的人時,他們繼續談論一些軟化,而不是他們最初認為的 23 年。所以這就是我們現在所看到的。現在假設我們的每個客戶會做什麼還為時過早。所以我們通常等到電話會議討論年底和二、三月的時間段,然後我們才能更好地了解 23 年的頂線會是什麼樣子。

  • Unidentified Analyst

    Unidentified Analyst

  • And with regards to the incremental costs that come as releases and actual production don't match. Can you give us a sense of how much of a headwind that's been this year?

    關於發布和實際生產不匹配所帶來的增量成本。你能告訴我們今年的逆風有多大嗎?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Well, you saw the inventory for the quarter, right? And so that's one large bit of cash that we spent because the releases were up. So it doesn't just make itself. So we have labor and plants running and people building this stuff that ultimately didn't sell, so. That's one way for me to describe it for you.

    好吧,你看到了本季度的庫存,對吧?這是我們花費的一大筆現金,因為發行量增加了。所以它不僅僅是自己製造的。所以我們有勞動力和工廠在運行,人們建造這些最終沒有賣掉的東西,所以。這是我為你描述它的一種方式。

  • Unidentified Analyst

    Unidentified Analyst

  • Are there like other incremental costs that are in this inventory timing related that are also impacted by this? Or should we just think of this as more of like a cash working capital impact?

    與此庫存時間相關的其他增量成本是否也受此影響?還是我們應該將其視為更像是對現金營運資金的影響?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Now clearly, when our volumes are suppressed like they are now, and we have the fixed cost base that we have in each of our regions. I mean volume is important. I mean we need like everybody, the volume to return and to get back to a normal way of operating rather than the stop, start and overbuilding inventories and then depleting those the next quarter and those are just inefficiencies that when you're in manufacturing, you don't like. Again, I don't want to harp on it from a customer point of view, they're doing the best they can with what they have as well. We're just highlighting the facts.

    現在很明顯,當我們的銷量像現在一樣受到抑制時,我們在每個地區都有固定的成本基礎。我的意思是音量很重要。我的意思是,我們需要像每個人一樣,恢復產量並恢復正常的運營方式,而不是停止、啟動和過度增加庫存,然後在下個季度耗盡這些庫存,而這些只是製造時的低效率,你不喜歡。同樣,我不想從客戶的角度來談論它,他們也在盡其所能地利用他們所擁有的東西。我們只是強調事實。

  • Unidentified Analyst

    Unidentified Analyst

  • I guess if I were (inaudible) 0:57:14. If you guys have been given like the actual production levels in the releases that you guys were like some actual realized reduction levels. Obviously, volumes would still be low, but I'm wondering how much lower would cost be if you knew like what to produce ignoring sort of the inventory buildup? I'm wondering, are there other operating costs that are higher because you guys had expected you needed to produce more and then you guys didn't? Or like how should I sort of model like cost decreases potentially because with better production schedules in future years?

    我想如果我是(聽不清)0:57:14。如果你們在版本中得到了實際生產水平,那麼你們就像一些實際實現的減少水平。顯然,產量仍然很低,但我想知道如果你知道生產什麼而忽略庫存積累,成本會降低多少?我想知道,是否還有其他更高的運營成本,因為你們預計需要生產更多,而你們卻沒有?或者像我應該如何分類模型,比如成本可能會因為未來幾年更好的生產計劃而降低?

  • Jeffrey S. Edwards - Chairman & CEO

    Jeffrey S. Edwards - Chairman & CEO

  • Yes, I'm not going to get into that breakdown. I think we take that offline if you want to get into that with Roger. But clearly, in our case, I can assure you that the actual production level in the third quarter, each of the months. And so far in the fourth quarter are down substantially from what we saw. And I think it's clear that the expectation from the customer was that they were going to be up too. So this isn't a surprise just from the supplier side of it, it's happened across the board. But if you want more detail in terms of modeling, which is what you just asked for, I suggest you get a hold of Roger after the call, and he can walk you through more details.

    是的,我不會陷入這種崩潰。如果你想和羅傑一起討論,我想我們會把它離線。但顯然,就我們而言,我可以向您保證,每個月的第三季度實際生產水平。到目前為止,第四季度與我們所看到的相比大幅下降。而且我認為很明顯,客戶的期望是他們也會上漲。因此,僅從供應商方面來看,這並不令人意外,而是全面發生。但如果你想要更多建模方面的細節,這正是你剛剛要求的,我建議你在通話後聯繫 Roger,他可以引導你了解更多細節。

  • Operator

    Operator

  • It appears that there are no more questions. I would now like to turn the call back over to Roger Hendriksen.

    似乎沒有更多的問題了。我現在想將電話轉回給 Roger Hendriksen。

  • Roger S. Hendriksen - Director of IR

    Roger S. Hendriksen - Director of IR

  • Okay. Thanks, everybody. We appreciate you joining the call, and appreciate all the good insightful questions. As Jeff mentioned, if you do have further questions or would like to engage further, please feel free to reach out to me, and we'll make arrangements to do that. Again, thanks for joining the call. You can disconnect, and have a great day. Ladies and gentlemen, that concur conference for today. Thank you for your participation. You may now disconnect.

    好的。謝謝大家。我們感謝您加入電話會議,並感謝所有有見地的好問題。正如 Jeff 所說,如果您還有其他問題或想進一步參與,請隨時與我聯繫,我們會安排這樣做。再次感謝您加入電話會議。您可以斷開連接,並度過美好的一天。女士們,先生們,同意今天的會議。感謝您的參與。您現在可以斷開連接。