Cooper-Standard Holdings Inc (CPS) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Cooper-Standard First Quarter 2024 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.

早安，女士們、先生們，歡迎參加庫柏標準 2024 年第一季財報電話會議。 （操作員說明）謹此提醒，本次電話會議正在錄製中，網路廣播將於今天稍晚在 Cooper-Standard 網站上重播。

I would now like to turn the call over to Roger Hendriksen, Director of Investor Relations. Please go ahead.

我現在想將電話轉給投資者關係總監 Roger Hendriksen。請繼續。

Thanks, Chloe, and good morning, everyone. We appreciate you taking the time to join our call today. 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.

謝謝，克洛伊，大家早安。我們感謝您今天抽出時間參加我們的電話會議。今天早上將在電話會議上與您交談的領導團隊成員包括董事長兼執行長 Jeff Edwards 和執行副總裁兼財務長 Jon Banas。

Before we begin, I need to remind you that this presentation contains forward-looking statements. And 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 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.

在開始之前，我需要提醒您，本簡報包含前瞻性陳述。雖然它們是根據當前的事實資訊以及管理層目前認為合理的某些假設和計劃制定的。這些陳述確實涉及風險和不確定性，有關前瞻性陳述的更多資訊。我們要求您參閱本簡報的投影片 3 以及本公司在向美國證券交易委員會提交的定期文件中的聲明。

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

本簡報也包含非公認會計準則財務指標。非公認會計原則財務指標與其最直接可比較的公認會計原則指標的調節表包含在簡報的附錄中。辦完這些手續後，我會將電話轉給傑夫愛德華茲。

Thanks, Roger, and good morning, everyone. How you do, and we appreciate the opportunity to review our first quarter results and provide an update on our business and the outlook going forward.

謝謝，羅傑，大家早安。您的表現如何，我們很高興有機會回顧我們第一季的業績並提供有關我們業務和未來前景的最新資訊。

So to begin on Slide 5, I'd like to highlight some key first quarter data points that we believe are reflective of our continued strong commitment to operational excellence and our core company values.

因此，從投影片 5 開始，我想重點介紹第一季的一些關鍵數據點，我們認為這些數據點反映了我們對卓越營運和公司核心價值的持續堅定承諾。

In terms of product quality, 97% of our customer scorecards were green in the quarter. For new program launches, our customer scorecards were 96%. So we continue to achieve outstanding operational performance and this is allowing us to deliver exceptional value to our customers. In addition, the safety performance of our plants continues to be excellent as well. During the first quarter, we had a total incident rate of 0.38 reportable incidents per 200,000 hours worked. That's well below the world-class benchmark of 0.47 leading this outstanding safety performance for the 39 plants that had a perfect safety record of zero incidents through the first three months of the year. I want to recognize the teams at these plants for their ongoing commitment and leadership as we continue to strive for our ultimate safety goal of zero incidents for the entire company.

在產品品質方面，本季我們 97% 的客戶記分卡為綠色。對於新項目的推出，我們的客戶評分卡為 96%。因此，我們繼續取得出色的營運績效，這使我們能夠為客戶提供卓越的價值。此外，我們工廠的安全性能也依然出色。第一季度，每 20 萬工作小時發生 0.38 起可通報事件。這遠低於 0.47 的世界級基準，而 39 家工廠在今年前三個月保持了零事故的完美安全記錄，在安全性能方面處於領先地位。我想表彰這些工廠的團隊在我們繼續努力實現整個公司零事故這一最終安全目標的過程中所做出的持續承諾和領導力。

In terms of cost ops and optimization, we had another solid quarter with our manufacturing and purchasing teams, delivering 19 million of savings through lean initiatives and other cost saving programs. This improved efficiency combined with our enhanced commercial agreements enabled us to improve our gross profit margin by a solid 300 basis points compared to the first quarter of last year. While we have more work to do, we continue to make progress for our profitability targets.

在成本營運和優化方面，我們的製造和採購團隊又取得了一個穩定的季度業績，透過精益計畫和其他成本節約計畫節省了 1,900 萬美元。效率的提高與我們增強的商業協議相結合，使我們的毛利率比去年第一季提高了 300 個基點。儘管我們還有更多工作要做，但我們將繼續在實現獲利目標方面取得進展。

Finally, we're continuing to leverage world-class service, technical capabilities and our award-winning innovations to win new business during the first three months of 2024 we were awarded 66 million in net new business awards. Importantly, we continue to partner with our customers to design and develop new technologies for some of their most important new vehicle platforms, including ICE, hybrid and battery electric vehicles.

最後，我們將繼續利用世界一流的服務、技術能力和屢獲殊榮的創新來贏得新業務，在 2024 年前三個月，我們獲得了 6,600 萬淨新業務獎項。重要的是，我們繼續與客戶合作，為其一些最重要的新車平台設計和開發新技術，包括內燃機汽車、混合動力車和純電動車。

Turning to slide 6. Another indication of our customer relationships, valued technology and world-class service are the product and service awards. We frequently frequently receive. We're very pleased once again to be named as a supplier of the year for General Motors, one of our top global customers. And I think probably one of the most coveted awards in our industry. While the award was announced and presented during the first quarter, it's an annual award that is reflective of our performance throughout the past year. This is the seventh consecutive year that we have received this prestigious GM award, and we look forward to continuing and expanding our relationship with them going forward.

轉向幻燈片 6。我們經常經常收到。我們非常高興再次被評為我們全球頂級客戶之一通用汽車的年度供應商。我認為這可能是我們行業中最令人垂涎​​的獎項之一。雖然該獎項是在第一季宣布和頒發的，但它是一個年度獎項，反映了我們過去一年的表現。這是我們連續第七年獲得這項享有盛譽的通用汽車獎，我們期待繼續並擴大與他們的關係。

Slide 7, while providing our customers with world-class products, technology and service. That's certainly what we do, our commitment to doing business the right way with uncompromised honesty, transparency, integrity and maintaining a continual focus on being a good corporate citizen says even more about who we are. We're pleased to announce that in just a few weeks, we will once again be publishing our annual corporate responsibility report it covers a wide range of topics, including products financial performance, corporate governance in environmental stewardship, among others. We hope that you will take the opportunity to read through the report and provide any feedback you might have or you might like to share your input will be helpful to us as we strive toward our company purpose of creating sustainable solutions together.

Slide 7，同時為我們的客戶提供世界一流的產品、技術和服務。這當然就是我們所做的，我們致力於以不妥協的誠實、透明、正直的方式以正確的方式開展業務，並持續關注成為優秀的企業公民，這更能體現我們的身份。我們很高興地宣布，在短短幾週內，我們將再次發布年度企業責任報告，該報告涵蓋廣泛的主題，包括產品財務績效、環境管理方面的公司治理等。我們希望您能藉此機會閱讀該報告，並提供您可能擁有的任何反饋或您可能想要分享的任何反饋，您的意見將對我們有所幫助，因為我們努力實現共同創建可持續解決方案的公司宗旨。

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

現在讓我將電話轉給約翰，以審查本季的財務詳細資訊。

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，大家早安。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詳細信息，並討論我們的現金流、流動性和資產負債表的各個方面。

Before I get into the financials, as you may have seen in our press release effective from the beginning of this year. We changed our operating management structure and reporting segments to a product line basis rather than the former geographic basis. We believe the new structure will be more efficient and we expect it to help us increase value creation going forward. Jeff will talk more about this in a few minutes.

在我進入財務之前，正如您可能在我們從今年年初開始生效的新聞稿中看到的那樣。我們將營運管理結構和報告分部從先前的地域基礎改為以產品線為基礎。我們相信新的結構將更加高效，並期望它將幫助我們增加未來的價值創造。幾分鐘後傑夫將詳細討論這一點。

Now looking at the first quarter's results. On Slide 9, we show a summary of our results for the first quarter of 2024 with comparisons to the same period last year. First Quarter 2024 sales were $676.4 million, a slight decrease of 0.9% compared to the first quarter of 2023. The decrease was driven by primarily by the divestiture of our technical rubber business in Europe during the third quarter of last year and a smaller divestiture of our stake in a joint venture in Asia. Excluding the impact of these divestitures, which represented 13 million of sales in the first quarter of 2023, net sales for the first quarter of last year would have been 669 million on that basis, our sales for the first quarter of 2024 would have been up around 1% year over year, outpacing global automotive production.

現在看第一季的業績。在投影片 9 上，我們展示了 2024 年第一季的業績摘要，並與去年同期進行了比較。 2024 年第一季銷售額為6.764 億美元，較2023 年第一季小幅下降0.9%。 。剔除這些資產剝離的影響（2023 年第一季銷售額為1,300 萬美元），去年第一季的淨銷售額將達到6.69 億美元，在此基礎上，我們2024 年第一季的銷售額將會成長年增約 1%，超過全球汽車產量。

Gross profit for the first quarter was $61.6 million or 9.1% of sales. This compares to a gross profit of 41.8 million or 6.1% of sales in the first quarter of 2023. Adjusted EBITDA in the quarter was 29.3 million compared to $12.5 million in the first quarter of last year. Year-over-year improvement was driven primarily by favorable volume and mix, enhanced commercial agreements and lean savings achieved in manufacturing and supply chain all partially offset by ongoing inflation headwinds in areas such as energy and labor costs, as well as the impact of unfavorable foreign exchange.

第一季毛利為 6,160 萬美元，佔銷售額的 9.1%。相較之下，2023 年第一季的毛利為 4,180 萬美元，佔銷售額的 6.1%。同比改善主要是由於有利的銷售和組合、增強的商業協議以及製造和供應鏈中實現的精益節約，所有這些都被能源和勞動力成本等領域持續的通膨逆風以及不利因素的影響所部分抵消。 。

On a US GAAP basis, the net loss for the quarter was $31.7 million compared to a net loss of 130.4 million in the first quarter of 2023. As you will recall our results for the first quarter of 2023 included a significant loss on refinancing and extinguishment of debt. Excluding this and other special items and the related tax impact from both periods.

根據美國公認會計原則，本季淨虧損為 3,170 萬美元，而 2023 年第一季淨虧損為 1.304 億美元。 。不包括該項目和其他特殊項目以及兩個時期的相關稅務影響。

Adjusted net loss for the first quarter of 2024 was 30.6 million or $1.75 per diluted share compared to adjusted net loss of 46.2 million or $2.68 per diluted share in the first quarter of 2023. Our capital expenditures in the first quarter totaled $16.8 million or 2.5% of sales compared to $29.3 million or 4.3% of sales for the first quarter of last year. We continue to have discipline around capital investments, which remain primarily focused on customer launch readiness and maximizing returns on invested capital.

2024 年第一季調整後淨虧損為3,060 萬美元，即稀釋後每股1.75 美元，而2023 年第一季調整後淨虧損為4,620 萬美元，即稀釋後每股2.68 美元。支出總額為1,680 萬美元，即2.5%去年第一季銷售額為 2,930 萬美元，佔銷售額的 4.3%。我們持續遵守資本投資紀律，主要關注客戶推出準備和投資資本回報最大化。

Moving to Slide 10. The charts on slide 10 provide additional insights and quantification of the key factors impacting our results for the quarter. For revenue, favorable volume and mix, including net customer price adjustments, increased sales by 8 million versus the first quarter of 2023. The impact from the technical rubber divestiture was 13 million in the quarter and foreign exchange mainly related to the Chinese RMB and the euro further reduced sales by a net $1 million versus the same period last year. For adjusted EBITDA, lean initiatives and purchasing and manufacturing contributed 19 million year over year. Favorable volume mix and net price adjustments as well as other cost recoveries drove a combined 15 million of profit improvement for the quarter and material cost improvements were a further benefit of 1 million. These positive contributors were partially offset by general inflation, including energy, salaries and wages, transportation and other costs amounting to 9 million in the quarter and another 9 million of unfavorable foreign exchange, primarily related to the strengthening of the Mexican peso and the Polish zloty against the US dollar.

轉到投影片 10。就收入而言，有利的銷售和組合（包括淨客戶價格調整）使銷售額比2023 年第一季增加了800 萬美元。相關。對於調整後的 EBITDA，精益計劃以及採購和製造同比貢獻了 1900 萬美元。有利的銷售組合、淨價格調整以及其他成本回收推動本季利潤總共提高了 1500 萬美元，材料成本的改善進一步帶來了 100 萬美元的收益。這些積極的貢獻部分被整體通膨所抵消，其中包括能源、薪資和工資、運輸和其他成本，本季度總計達900 萬美元，另外還有900 萬美元的不利外匯，主要與墨西哥比索和波蘭茲羅提的走強有關兌美元。

Moving to slide 11, in terms of cash flow and liquidity. Cash used in operating activities was approximately 14 million in the first quarter of 2024, as seasonal changes in working capital and the timing of compensation related payments offset improved cash earnings. As mentioned earlier, CapEx was around $17 million in the first quarter of 2024, resulting in a net free cash outflow of approximately $31 million. We ended the first quarter with a cash balance of approximately 114 million combined with 167 million of availability on our ABL, which remained undrawn. We had solid total liquidity of approximately $282 million as of March 31st, 2024.

轉到投影片 11，關於現金流和流動性。 2024 年第一季度，經營活動使用的現金約為 1,400 萬美元，因為營運資金的季節性變化和與薪酬相關的付款時間抵消了現金收益的改善。如前所述，2024 年第一季的資本支出約為 1,700 萬美元，導致自由現金流淨流出約 3,100 萬美元。第一季結束時，我們的現金餘額約為 1.14 億美元，加上 ABL 上的可用資金為 1.67 億美元，但尚未提取。截至 2024 年 3 月 31 日，我們的總流動資金約為 2.82 億美元。

Regarding our credit facilities, we are pleased to announce that we just signed an extension on our ABL through May of 2029. The agreement and extended term ensures that we have the flexibility we need to continue executing our plans and initiatives to improve the financial strength of the company and drive profitable growth and enhance value over the long term.

關於我們的信貸安排，我們很高興地宣布，我們剛剛簽署了將ABL 延期至2029 年5 月的協議。財務實力並推動獲利成長並長期提升價值。

Based on our current outlook and expectations for light vehicle production, our improving operating efficiencies, further cost reduction initiatives and the continuing benefit from enhanced commercial agreements with our customers, we expect to generate positive free cash flow for the full year and based on that outlook, our current total liquidity position, we believe we have sufficient resources to execute the business and pursue our growth objectives for the foreseeable future.

基於我們目前對輕型汽車生產的前景和預期、不斷提高的營運效率、進一步降低成本的舉措以及與客戶加強商業協議帶來的持續收益，我們預計全年將產生正的自由現金流，並基於這一前景，我們目前的總流動資金狀況，我們相信我們有足夠的資源來執行業務並在可預見的未來實現我們的成長目標。

Let me turn it back over to Jeff.

讓我把它轉回給傑夫。

Thanks, John. In over the next few minutes, I'd like to provide you with some insights into our change in operational management structure from a regional basis to a product line basis, how this change fits in the overall strategy and how it will drive some significant cost improvements in our business.

謝謝，約翰。在接下來的幾分鐘內，我想向您提供一些關於我們營運管理結構從區域基礎到產品線基礎的變化的見解，這種變化如何適應整體戰略以及它將如何帶來一些重大成本我們業務的改進。

So please turn to Slide 13. Last year. Our global leadership team outlined and refined four key strategic imperatives to accelerate growth and maximize the long-term value of our company through relentless focus on these imperatives and a lot of hard work. We are definitely making progress, but we know we have to be more aggressive, more agile, certainly more responsive to our markets and our customers. If we're going to get to the next level and achieve our long-term objectives. The change to product based management is intended to do just that.

所以請翻到投影片 13。我們的全球領導團隊概述並完善了四項關鍵策略要務，透過不懈地關注這些要務並進行大量努力，加速成長並最大限度地提高公司的長期價值。我們確實在取得進步，但我們知道我們必須更加積極、更加敏捷，當然也要對我們的市場和客戶做出更快的反應。如果我們想要更上一層樓並實現我們的長期目標。基於產品的管理的變革就是為了實現這個目標。

So please turn to Slide 14. The new structure, which was put in place effective January one is already providing key benefits, including establishing complete P&L ownership and accountability for each product line, optimizing allocation of human and capital resources, streamlining operations and engineering execution and enabling us to more quickly deliver value, add innovations to our customers. In addition, the new structure will allow each product group to more fully develop and execute separate customized strategies suited to the needs of their specific markets.

因此，請參閱投影片 14。我們能夠更快地交付價值，為客戶增加創新。此外，新的結構將使每個產品組能夠更全面地開發和執行適合其特定市場需求的單獨客製化策略。

Turning to slide 15, in our sealing business, we're certainly working from a position of strength as the global leader in the market, we will look to expand our market share and competitive advantage through technology and customer service, enhancing customer relationships as well as pursuing opportunistic market opportunities in support of our customers. We expect to improve profitability and return on asset by rightsizing costs within our operations while aligning capital investments with high growth opportunities.

轉向投影片 15，在我們的密封業務中，我們無疑處於市場全球領導者的優勢地位，我們將尋求透過技術和客戶服務擴大我們的市場份額和競爭優勢，同時增強客戶關係尋求機會性市場機會來支持我們的客戶。我們希望透過調整營運成本來提高獲利能力和資產回報率，同時使資本投資與高成長機會保持一致。

Turning to Slide 16. In our fluid business we see greater opportunity for accelerated profitable growth given the highly technical requirements for thermal management in hybrid and electric vehicles.

轉向幻燈片 16。

As we bring some of our recently announced innovations to market we expect to significantly increase our average content per vehicle as well as expand our total addressable market. Patented innovations will also improve our competitive advantage and enable market share gains. We believe we can be competitive and build a solid Fluid Handling business in China based on the proprietary technology enhancements we provide to electric vehicles.

隨著我們將最近宣布的一些創新推向市場，我們預計將顯著增加每輛車的平均內容，並擴大我們的總目標市場。專利創新也將提高我們的競爭優勢並增加市場份額。我們相信，基於我們為電動車提供的專有技術增強功能，我們能夠具有競爭力並在中國建立穩固的流體處理業務。

Turning to Slide 17. Finally, with a new organization structure in place. Our operations are already becoming more streamlined and more efficient as automotive production levels have not rebounded as quickly as many had expected, but certainly an imperative that we do. So we've identified opportunities to further optimize cost by eliminating redundancies, automating processes and leveraging technology. Beginning later this quarter, we'll be implementing a plan to reduce our salaried workforce globally. The actions are expected to save between 20 and 25 million in 2024 and between 40 and $45 million on a full year annualized basis next year. The anticipated savings are expected to provide a payback on related restructuring costs in six months. Further, we expect the savings will enable both operating segments to approach if not achieve double digit EBITDA margins as we exit 2025. As these initiatives were not contemplated when we developed our initial plan for the year, successful implementation and the related cost savings could represent an upside to our 2024 full year guidance. Certainly assuming industry production volumes hold at planned levels as we typically do, we expect to provide a formal update on guidance in conjunction with our second quarter results. So I want to thank our customers and all of our stakeholders for your continued confidence as we support and support as we work through these turbulent times in our industry, and we thank you all for joining the call today.

轉向投影片 17。由於汽車生產水準的反彈速度沒有許多人預期的那麼快，我們的營運已經變得更加精簡和高效，但這無疑是我們必須做的。因此，我們找到了透過消除冗餘、自動化流程和利用技術來進一步優化成本的機會。從本季末開始，我們將實施一項減少全球受薪員工的計畫。這些行動預計將在 2024 年節省 2,000 至 2,500 萬美元，並在明年全年節省 4,000 至 4,500 萬美元。預計節省的資金將在六個月內收回相關重組成本。此外，我們預計，當我們退出2025 年時，節省的費用將使兩個營運部門能夠接近兩位數的EBITDA 利潤率。相關成本節約可能意味著我們的 2024 年全年指引有上行空間。當然，假設行業產量像我們通常所做的那樣保持在計劃水平，我們預計將結合第二季業績提供正式的最新指導。因此，我要感謝我們的客戶和所有利益相關者在我們度過行業動盪時期時給予我們的持續信任，並感謝大家今天加入電話會議。

This concludes our prepared remarks, so let's move into Q&A.

我們準備好的演講到此結束，讓我們進入問答環節。

(Operator Instructions) Michael Ward, Freedom Capital.

（操作員說明）Michael Ward，Freedom Capital。

Thank you very much. Good morning, everyone. I'm just when you look at this the actions you're taking, it sounds like more details will come in the second quarter, but there's a very quick payback? Is that because the nature of it is just salary headcount reduction?

非常感謝。大家，早安。我只是當你看看你正在採取的行動時，聽起來更多細節將在第二季度公佈，但回報很快嗎？難道是因為其本質只是減薪？

Good morning, Mike, I appreciate the question. Yes, that's that's the fact. Obviously a lot of changes within our company, but continued challenges within the industry, right? And we've done a lot of things to realign with today's reality.

早安，麥克，我很欣賞這個問題。是的，事實就是如此。顯然我們公司內部發生了很多變化，但行業內部仍然存在挑戰，對嗎？我們做了很多事情來適應當今的現實。

And the new organization structure really has put the costs of running these businesses directly in the hands of those that are running it. So that the support infrastructure, say down the left-hand side of the chart, it certainly isn't as required as it once was as we were building the organization.

新的組織結構確實將營運這些業務的成本直接交到了營運者的手中。因此，支援基礎設施（如圖表左側所示）肯定不像我們建置組織時那樣需要。

And so we're taking these measures to dramatically reduce our costs, make ourselves a lot more agile, make our decision making what it needs to be to support our customers and frankly, move us a lot closer to the double digit EBITDA and double digit ROIC objectives that we have to a point that will be there and next year with those up with those particular objectives as certainly we exit 2025. That's what we believe.

因此，我們正在採取這些措施來大幅降低成本，使自己更加敏捷，做出支援客戶所需的決策，坦白說，使我們更接近兩位數的 EBITDA 和兩位數ROIC 的目標是我們必須達到的目標，明年我們將實現這些特定目標，當然我們會在2025 年退出。

And what percentage is of your global salaried headcount?

佔您全球受薪員工總數的百分比是多少？

We haven't announced that that detail, Mike, but it's not substantial. It's a substantial component of the total cost. I would tell you that I just as soon not get into the percentages for the client. That's now what we're talking about the whole folks here. So I just keep it not like cancer.

麥克，我們還沒有宣布這個細節，但這並不重要。它是總成本的重要組成部分。我想告訴你，我只是不去了解客戶的百分比。這就是我們現在在這裡談論的所有人。所以我只是讓它不像癌症一樣。

So given your current your initial guidance of adjusted EBITDA of one eight to 10. Now if all things being equal, we could be looking at somewhere in the 200 to 2 35 range is what you're saying when you get this thing done this year?

因此，考慮到您目前對調整後EBITDA 的初步指導為八到十。說的？

Yes, we'll describe that to you like we always do as we as we exit Q2. But yes, your your range would be would be accurate as we sit here today. I guess the biggest issue that everybody has, we're not the Lone Ranger here obviously is what are the volumes going to be. I mean if we knew that, then I can answer your question of note in the cash cost for that restructuring are in line with it sounds like you're looking at a $25 million charge, and that will be the cash costs as well.

是的，我們會像退出第二季時那樣向您描述這一點。但是，是的，當我們今天坐在這裡時，您的範圍將是準確的。我想每個人都面臨的最大問題是，我們不是這裡的獨行俠，顯然是銷售量是多少。我的意思是，如果我們知道這一點，那麼我可以回答您關於重組現金成本的問題，聽起來您正在考慮 2500 萬美元的費用，這也將是現金成本。

But a pretty quick payback actually from a cash point of view, cash flow, it will be a cash flow plot positive, is that even for 24? Okay. John, on the FX, you mentioned Mexico and Poland, that seems like a pretty big hit on a relative basis. As far as the impact, I mean, it took off almost a point-and-a-half of margin from what were some of the circumstances there and has that continued in 2Q?

但實際上從現金的角度來看，回報相當快，現金流，這將是一個正現金流圖，即使是 24 小時也是如此嗎？好的。約翰，在外匯上，您提到了墨西哥和波蘭，相對而言，這似乎是一個相當大的打擊。就影響而言，我的意思是，它比當時的一些情況減少了近一個半的利潤，這種情況在第二季是否持續？

And thanks for the question, Mike. The dynamic here is that we operate in the various countries where the local cost base isn't tied with the of the revenue stream. So for example, in Poland, we manufacture our products there locally. So the cost base is in zloty.

謝謝你的提問，麥克。這裡的動態是，我們在各個國家開展業務，當地成本基礎與收入流無關。例如，在波蘭，我們在當地生產我們的產品。所以成本基礎就是茲羅提。

However, the the regional trading currency is the euro. So we sell in euro base, right? So as the zloty would appreciate against the euro and or the USD, our costs go up in relative terms. And that's really what's driving it similar to the peso where as we manufacture in Mexico for certain of our shipments back into the US, we the revenue is tied to the U.S. dollar as opposed to the peso. So when you when you think about coming into from last year. The peso was average in the quarter about $18.66, 18 pesos to the dollar.

然而，區域交易貨幣是歐元。所以我們以歐元為基礎進行銷售，對嗎？因此，隨著茲羅提兌歐元和/或美元升值，我們的成本相對上升。這確實是推動它的原因，與比索類似，當我們在墨西哥製造並將某些貨物運回美國時，我們的收入與美元而不是比索掛鉤。所以當你想到從去年開始的時候。本季比索平均約為 18.66 美元，即 1 美元兌換 18 比索。

It's now down the average 1697. So as that as the peso continues to strengthen, again, our cost base rises relative to the selling currency and similar on the zloty, Czech corona to a minor extent in the RMB.

現在已低於平均 1697。

I mentioned on the top line as well. So that's that's really what's going on. We do some we do place hedges against our fixed costs, but you don't hedge against 100% of that. So it takes a little bit bite out of it, but not completely is or is that something you can recover? Or do you just adjust with price on powered trial with certain of certain of our commercial arrangements have had FX components to them as far as a disease and recovery, but not not all of them. So we'll never be able to recover 100% of that data.

我也在頂行提過。這就是真正發生的事情。我們確實對固定成本進行了一些對沖，但你並不能 100% 對沖。所以它需要一點點，但不是完全是或是你可以恢復的東西？或者您只是根據動力試驗的價格進行調整，我們的某些商業安排在疾病和康復方面都具有外匯成分，但不是全部。因此我們永遠無法 100% 恢復該資料。

And we're going back to our customers as these things exacerbate or continue to stay elevated to reengage in conversations and just one last thing, Jeff, you kind of alluded to it, but it sounds like there's a with the industry trying to push and accelerate production of hybrids. I think you used to provide some sort of a content walk between ICE vehicles, hybrids and all electric. What type of content are we looking at with as a push on these hybrids, particularly, I guess for the fluid side of it relative to ICE and what you're seeing over the next, say, 12 to 18 months?

當這些事情加劇或繼續保持高位以重新參與對話時，我們將回到我們的客戶那裡，最後一件事，傑夫，你有點提到了這一點，但聽起來行業正在努力推動和加速雜交種的生產。我認為你們曾經在內燃機汽車、混合動力汽車和全電動汽車之間提供某種內容步行。我們正在尋找什麼類型的內容來推動這些混合動力，特別是我想相對於 ICE 而言，它的流動性方面以及您在接下來的 12 到 18 個月內會看到什麼？

It's a good question, Mike. So if we use ICE as the baseline for your question. And if we would go from an ICE vehicle to a hybrid vehicle, meaning our customers would and that we would be supplying the fluid handling for that particular hybrid, it would almost double our content per vehicle on hybrids to X.

這是個好問題，麥克。因此，如果我們使用 ICE 作為您問題的基線。如果我們從內燃機汽車轉向混合動力汽車，這意味著我們的客戶會並且我們將為該特定混合動力汽車提供流體處理，那麼我們每輛車的混合動力汽車含量幾乎會增加一倍。

And then BEV.'s is even higher than that. We actually know the EV would be about 20% at 20% to 30% higher is the number we've used with you in the in the past, higher higher relative to ICE waiver by US GAAP. So hybrid US Hybrid. The hybrid is definitely the the higher content per vehicle solution for Cooper-Standard. And so the fact that that we're talking about more hybrids out there, that's good news for us.

然後 BEV. 的甚至更高。實際上，我們知道 EV 會高出 20% 左右，比我們過去與您使用的數字高出 20% 到 30%，相對於美國 GAAP 的 ICE 豁免來說更高。所以混合美國混合動力。對於庫柏標準來說，混合動力絕對是每輛車含量更高的解決方案。事實上，我們正​​在談論更多的混合動力車，這對我們來說是個好消息。

Our next question comes from the line of Kirk with Keith from Imperial Capital. Your line is open.

我們的下一個問題來自帝都的柯克和基斯。您的線路已開通。

Good morning, Jeff. John, Roger, appreciate the call. And just with respect to the outage, the March quarter, were there any commercial settlements from prior periods in there now?

早安，傑夫。約翰，羅傑，感謝您的來電。就停電而言，三月季度，現在是否有任何先前期間的商業結算？

Kurt, I think or yes, as we talked on the last call, we detailed all that for you and look as we get into that 24 and beyond. There's always commercial conversations going on. So we'll have we'll have settlements each quarter. And there always is, but nothing to the magnitude of what we what we've talked to you about last year. So I would say, let's just call it business as usual and 24 is as it relates to pricing.

庫爾特，我認為或者是的，正如我們在上次電話會議中所討論的那樣，我們為您詳細介紹了所有這些內容，並展望我們進入 24 日及以後的情況。總是有商業對話在進行。因此，我們每季都會進行結算。總是有的，但沒有什麼比我們去年和你們談論的嚴重程度。所以我想說，我們就照常稱之為“24 小時”，因為它與定價有關。

Got it. Perfect. I appreciate it. And then with respect to the you mentioned you there's you see some some upside to the earlier 24 guidance, are you still using the same production estimates that you gave us last quarter?

知道了。完美的。我很感激。然後，關於您提到的，您看到了較早的 24 指導方針的一些優點，您是否仍在使用上季度給我們的相同產量估計？

Yes. The volumes that we that we talked about are unchanged, as you know, the first quarter was a bit challenging as it got started from a volume point of view. But then we saw some recovery in February and March was and I guess what we were hoping March would be is how I would describe it a little bit of a slow start, but a strong March helped the overall number. And then our comments related to the rest of the year. We typically have I'll take a shot at that. After the second quarter, we have a little bit better view of quarter three and four at that point and then we'll adjust anything for you at that at that stage is how we've done it for a decade. So we'll continue to do it that way.

是的。我們談到的銷售量沒有變化，如您所知，第一季有點具有挑戰性，因為從銷售的角度來看。但後來我們在 2 月和 3 月看到了一些復甦，我想我們所希望的 3 月會是我所描述的有點緩慢的開始，但強勁的 3 月有助於整體數字。然後我們的評論與今年剩餘時間有關。我們通常會嘗試一下。第二季之後，我們對第三季和第四季有了更好的看法，然後我們會在那個階段為您調整任何內容，這就是我們十年來的做法。所以我們將繼續這樣做。

Got it. Thank you. And with respect to the geographic reporting, were you were you EBITDA positive and all the regions again, this quarter?

知道了。謝謝。關於地理報告，本季所有地區的 EBITDA 是否為正值？

Yes.

是的。

Great. And then and then lastly, on the new business, it appears to be ramping RUM. Ken, can you provide the percentage of your first quarter revenues that were generated from electric hybrid for both vehicles?

偉大的。最後，在新業務上，朗姆酒似乎正在增加。肯，您能提供這兩款車的電動混合動力車收入佔第一季收入的百分比嗎？

Yes, I don't have that in front of me occurred at this point. I mean, we certainly can can provide it. I'm sure Roger can get back to you with that.

是的，此時此刻我面前並沒有發生這種情況。我的意思是，我們當然可以提供。我相信羅傑可以回覆你。

Okay. Meaningful.

好的。有意義。

I think we continue to progress our well as we as we manage issue of what that future is. I mean, it certainly has been moving around on us, but but we haven't seen a whole lot of our of our core business cannibalized, if I could say it that way. So that's good.

我認為，當我們處理未來的問題時，我們會繼續取得進展。我的意思是，它確實一直在影響我們，但如果我可以這樣說的話，我們還沒有看到我們的核心業務被蠶食。所以這樣很好。

And as we have been told by our customers that certain EVs are being pushed out as much as two years on some new business that we already been awarded.

正如我們的客戶告訴我們的那樣，我們已經獲得的一些新業務的某些電動車將被推遲長達兩年。

And that wasn't a significant hit to us just because we hadn't spent a bunch of money yet.

這對我們來說並不是一個重大打擊，因為我們還沒有花很多錢。

And so we're just on hold there.

所以我們就擱置在那裡。

And in the meantime, I will continue to run what we already run longer. So that's probably going to be a bit of a benefit, too, from an asset point of view. So I guess there's there's puts and takes. But overall, I'm not I'm not complaining and I appreciate it.

同時，我將繼續運行我們已經運行更長時間的專案。因此，從資產的角度來看，這也可能帶來一些好處。所以我想這裡面有看跌和拿跌。但總的來說，我不是我沒有抱怨，我很感激。

Thank you. Very much.

謝謝。非常。

Ben Briggs, StoneX Financial.

Ben Briggs，StoneX Financial。

Good morning, guys. Thanks for taking the questions. So I just wanted to touch on top line revenue growth for a minute. I know that on a GAAP basis, this quarter, the revenue was down, let's call it 1% year over year, but there was a little bit of noise in there. And if you call it on a call like US same customer revenue line, you guys were actually up a little bit and can you give me a little bit more clarity on what the trajectory of call it, that same customer revenue, customer revenue should look like and what the drivers are going to be, is it going to be pricing is going to be more new business wins? Or is it going to be a?

早上好傢伙。感謝您提出問題。所以我只想談談營收成長。我知道，按照 GAAP 計算，本季的營收年減了 1%，但其中存在一些噪音。如果你像美國一樣，在電話中調用相同的客戶收入線，那麼你們實際上已經上升了一點，你能否讓我更清楚地了解調用它的軌跡，相同的客戶收入，客戶收入應該是什麼樣子驅動因素是什麼，定價是否會帶來更多新業務的勝利？或者它會是一個？

Yes, it's a combination of both, yes, as Jeff. So I think what John went through with you was we had a couple of transactions. So we sold a couple of businesses that resulted in a bit of a top line down but when you compare apples to apples and you look at the industry of automotive versus our automotive revenue, we were actually up for the quarter slightly.

是的，這是兩者的結合，是的，就像傑夫一樣。所以我認為約翰和你一起經歷的是我們進行了幾筆交易。因此，我們出售了幾項業務，導致營收略有下降，但當你將蘋果與蘋果進行比較，並查看汽車行業與我們的汽車收入時，我們實際上在本季度略有上升。

And so I think as we look without getting into any more details about second through fourth quarter this year, I think that is what we think is going to continue to to be like. So I would say our business plan is pretty much spot on this at this stage. I wouldn't think the numbers are going to drift much differently as we go through second, third and fourth quarter. I mean, obviously, each month changes a bit. But overall, we still expect to outgrow the markets that we serve. And automotive, I think that's the key point.

因此，我認為，在我們不深入了解今年第二季到第四季的更多細節的情況下，我認為這就是我們認為將繼續存在的情況。所以我想說，我們的商業計劃在現階段已經非常到位了。我認為在第二、第三和第四季度，這些數字不會有太大不同。我的意思是，顯然每個月都會發生一些變化。但總體而言，我們仍然預計其成長速度將超過我們所服務的市場。至於汽車，我認為這是關鍵點。

Okay.

好的。

That's that's helpful.

這就是有幫助的。

Thank you.

謝謝。

So since your revenue is outgrowing the markets that you serve, is it fair to say that you're winning market share?

那麼，既然您的收入成長超過了您所服務的市場，那麼可以說您正在贏得市場份額嗎？

Yes, I think that's what we're saying and we with the announcement here around sealing and fluid handling going forward, given the innovation we have and given the customers' excitement about it and what I just talked to the previous caller about in terms of content per vehicle going up, especially our fluid business, we expect to continue to gain share.

是的，我認為這就是我們所說的，考慮到我們所擁有的創新以及客戶對此的興奮以及我剛剛與前一個來電者談論的內容，我們在此宣布了有關密封和流體處理的未來發展每輛車的內容量不斷增加，特別是我們的流體業務，我們預計將繼續獲得份額。

Great. That's helpful. On Moving on to gross margins, you guys are obviously up, call it 300 basis points on a year-over-year basis, come down a little bit, but let's call it close to flat sequentially. Do you guys see gross margin hitting double digits, call it, 10 plus percent during the current fiscal year? Or is that something that we should think about more 2025 and beyond?

偉大的。這很有幫助。說到毛利率，你們顯然是上升了，可以稱之為同比增長 300 個基點，也可以說是下降了一點，但我們可以稱之為接近持平。你們認為本財年的毛利率會達到兩位數，即 10% 以上嗎？或者這是我們 2025 年及以後更應該考慮的事情嗎？

Does as Jeff The answer is yes. And then I was pretty clear about where I think 25 is going to be. So we should be back to double digit EBITDA and ROIC as a company as we exit 25.

像傑夫那樣做 答案是肯定的。然後我就很清楚我認為 25 會是什麼樣子了。因此，當我們退出 25 時，作為一家公司，我們的 EBITDA 和 ROIC 應該回到兩位數。

All right. Great. That's very helpful. And then last thing for me is I know that you're in June on the third liens, the June interest payment, you guys elected to pay cash there. When do you need to formally elect whether you're December interest payments will be cash or pay?

好的。偉大的。這非常有幫助。對我來說最後一件事是，我知道你們在六月有第三次留置權，即六月的利息支付，你們選擇在那裡支付現金。什麼時候需要正式選擇 12 月份的利息支付方式是現金還是支付？

Hey, Ben, this is John. We have to elect that six months in advance. So really by June first, essentially, we'll be making that election on both the first lien and the third lien notes.

嘿，本，這是約翰。我們必須提前六個月做出選擇。因此，實際上到六月一日，我們將在第一留置權和第三留置權票據上進行選擇。

(Operator Instructions) Brian DiRubbio, Baird.

（操作員說明）Brian DiRubbio，Baird。

Good morning, gentlemen. A couple of questions for you. Just on, John, are you going to put out a recast segment results with the new second structure in place?

早安，先生們。有幾個問題想問你。約翰，您打算在新的第二個結構到位的情況下發布重新調整的分段結果嗎？

Yes, the window we issue our 10 Q later today, Brian, you're going to see the segment results for not only of this first quarter of this year, but also 2023. And then each subsequent quarter will put in the the historical frame of reference for you on those. And we're going to obviously get to once we get to the 10 K will be a full three years. And there will go all the way back to 2022 just because of the comparative rules from SEC standpoint. So you'll see those coming as we as we publish our upcoming financials Scott, excuse me and then yes, sorry, go ahead.

是的，我們今天晚些時候發布10 Q 的窗口，布萊恩，您不僅會看到今年第一季的分部結果，還會看到2023 年的分部結果。框架給你這些方面的參考。顯然，一旦我們達到 10 K，我們將需要整整三年的時間。僅僅因為 SEC 角度的比較規則，就會追溯到 2022 年。因此，當我們發布即將發布的財務報告時，您會看到這些內容，斯科特，對不起，然後是的，抱歉，請繼續。

No, I was just going to point out that you also see the previous years in the press release that we issued last night as well together. But I'm glad that I got the one of Austria.

不，我只是想指出，您也可以在我們昨晚一起發布的新聞稿中看到前幾年的情況。但我很高興我得到了奧地利的那張。

Yes, yes. Now that I got it. Yes, just going to rewrite my rewrite. My model now is just fine. So just on that pick versus cash pay, I guess my question for you on that is, you know, if you were if you would have cash paid your coupons this year, would you still be free cash flow positive?

是的是的。現在我明白了。是的，只是要重寫我的重寫。我的模型現在很好。因此，就選擇與現金支付而言，我想我對你的問題是，如果你今年用現金支付優惠券，你的自由現金流仍然是正數嗎？

Well, I gave you that the general that we expect to be free cash flow positive. We don't get into the details of what the magnitude of that is. We don't give free cash flow guidance. So we'll I'll just leave it at that. And we're continuing to work towards, obviously not having to elect that we want to have it for the rest of this year through the through the Q4 payment and then that rolls off in 25 forward. But clearly, the goal is to not add to the quantum of debt and be able to straight pay all that. So I won't give you the the adjusted pro forma guidance on that, but that will just leave it at that.

好吧，我已經給你說了我們預計自由現金流為正的總體情況。我們不會詳細說明其嚴重程度。我們不提供自由現金流指導。所以我們就這樣吧。我們正在繼續努力，顯然不必選擇我們希望在今年剩餘時間內透過第四季度付款，然後在 25 年後滾動。但顯然，我們的目標是不增加債務規模並能夠直接償還所有債務。因此，我不會向您提供調整後的預計指導，但僅此而已。

Fair enough.

很公平。

This year speculation that you still like to do a global refi next year. That's our current thinking. You know, of course, that all depends on the production environment, the interest rate environment and the like. But certainly with our trajectory, what we're thinking about in terms of continued improvements in the cost base of the business improvements and free cash flow that Jeff and I have been talking about here today. We think that sets us up very well to be in the market next year, but a lot of factors go into that.

今年猜測明年你仍然喜歡進行全球再融資。這就是我們目前的想法。當然你知道，這一切都取決於生產環境、利率環境等。但當然，按照我們的軌跡，我們正在考慮持續改善業務改進的成本基礎和傑夫和我今天在這裡討論的自由現金流。我們認為這為我們明年進入市場奠定了良好的基礎，但這涉及許多因素。

And then final question is on just on raw materials, natural rubber and butadiene prices are trending upward. We are those mostly on a lag basis in terms of your pricing resets?

最後一個問題是關於原料，天然橡膠和丁二烯的價格呈上升趨勢。我們是那些在定價重置方面大多處於滯後狀態的人？

Yes, Brian, it's John again past and typically there on a quarter or perhaps a two quarter lag. Same thing with our steel and aluminum buys as well. You see a quarter or two there. So we are seeing what you described on the rubber side, but also on the steel cold-rolled steel side, we are seeing some headwinds. When we came into 2024, we thought we'd have a slight tailwind, but now that's kind of been mitigated by by recent commodity trends. And we're back to kind of a flat commodity environment overall for the year that that's our current outlook.

是的，布萊恩，約翰又過去了，通常會延遲四分之一或兩季。我們購買的鋼材和鋁材也是如此。你在那裡看到一兩個季度。因此，我們在橡膠方面看到了您所描述的情況，但在鋼鐵冷軋鋼方面，我們也看到了一些不利因素。當我們進入 2024 年時，我們認為會出現輕微的順風，但現在這種情況因最近的大宗商品趨勢而有所緩解。今年我們又回到了整體上平穩的大宗商品環境，這就是我們目前的前景。

And final one for me. Could you remind me what your of the cost recovery payments were last year in aggregate, are you talking about the cost we were able to take out of the business, knowing what the OE sort of compensate you for for the prior year inflation pressures?

對我來說也是最後一件事。您能否提醒我您去年的成本回收付款總額是多少？

Yes, this is Jeff. I think we haven't revealed that and we'll keep that to ourselves. I guess from a pricing point of view, if we feel like we have done a really good job. Our customers have certainly stood up and supported Cooper Standard's requests. We've talked about the impact at the end of last year. You can see the impact but that's had during the first quarter. Obviously, are our bullish comments today about what we think 24 could be and certainly 25. And clearly, we've got we've got our own lifting to still do this isn't about just how much money do we negotiate in price increases. Frankly, most of it is reflects the cost increases that the business went through but I think we're in a good position to be successful. We're in a good position to return ourselves to the level of profitability that we need to be in to generate the type of cash we need to be generating in order to provide our customers with the consistent ongoing support. We've always done and certainly continuing to improve for our shareholder base is part of that whole equation as well. So we'll keep the amount to ourselves to stage.

是的，這是傑夫。我想我們還沒有透露這一點，我們會保守秘密。我想從定價的角度來看，如果我們覺得我們做得非常好的話。我們的客戶當然站出來支持庫柏標準的要求。我們在去年年底就已經討論過其影響。您可以看到影響，但這是在第一季產生的。顯然，我們今天的樂觀評論是關於我們認為 24 可能是什麼，當然是 25。 。坦白說，其中大部分反映了業務所經歷的成本增加，但我認為我們處於取得成功的有利位置。我們處於有利位置，可以使自己恢復到我們需要的盈利水平，以產生我們需要產生的現金，以便為我們的客戶提供一致的持續支持。我們一直在這樣做，當然，繼續改善我們的股東基礎也是整個方程式的一部分。所以我們會把這筆錢留給我們自己去舞台。

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

看來沒有更多的問題了。我現在想將電話轉回羅傑·亨德里克森先生。請繼續。

Okay. Thanks, everybody for joining the call. We appreciate your questions and the engagement, please feel free to reach out to me directly if there are other questions that we didn't cover or we'd like to address in more detail. Thanks again. And this concludes our call.

好的。謝謝大家加入通話。感謝您的提問和參與，如果還有我們未涵蓋的其他問題或我們想要更詳細解決的問題，請隨時直接與我聯繫。再次感謝。我們的通話到此結束。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。