Commercial Vehicle Group Inc (CVGI) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to CVG's First Quarter 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們先生們，早上好，歡迎來到 CVG 2023 年第一季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

I would now like to turn the conference over to Mr. Andy Cheung, Executive Vice President and Chief Financial Officer. Please go ahead, sir.

我現在想把會議轉交給執行副總裁兼首席財務官張國榮先生。請繼續，先生。

Thank you, operator, and welcome, everyone, to our conference call. Joining me on the call today is Harold Bevis, President and CEO of CVG. This morning, we will provide a brief company update as well as commentary regarding our first quarter 2023 results. After which, we will open the call for questions. As a reminder, this conference call is being webcast and a supplemental earnings presentation is available on our website. Both may contain forward-looking statements, including unlimited to expectations for future periods regarding market trends, cost-saving initiatives and new product initiatives among others.

謝謝接線員，歡迎大家參加我們的電話會議。今天和我一起參加電話會議的是 CVG 總裁兼首席執行官 Harold Bevis。今天上午，我們將提供簡短的公司更新以及關於我們 2023 年第一季度業績的評論。之後，我們將打開問題電話。提醒一下，本次電話會議正在進行網絡直播，我們的網站上提供了補充收益報告。兩者都可能包含前瞻性陳述，包括對未來時期市場趨勢、成本節約計劃和新產品計劃等方面的無限預期。

Actual results may differ from anticipated results because of certain risks and uncertainties. These risks and uncertainties may include, but a lot limited to economic conditions in the markets in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier, financial covenant compliance and liquidity, risks associated with conducting business in foreign countries and currencies and other risks are detailed in our SEC filings.

由於某些風險和不確定性，實際結果可能與預期結果不同。這些風險和不確定性可能包括但在很大程度上限於 CVG 運營所在市場的經濟狀況、CVG 供應的車輛產量波動、財務契約合規性和流動性、與在國外開展業務相關的風險我們向美國證券交易委員會提交的文件中詳細說明了貨幣和其他風險。

I will now turn the call over to Harold to provide a company update.

我現在將電話轉給 Harold 以提供公司更新。

Thank you, Andy, and Good morning, everyone. I want to apologize in advance since I have a small cold, and I might cough a few times. And I also want you know I sound worse than I am. But we're very happy to be speaking this morning. And as is our usual format, we'll be referring to an earnings presentation, which is found on our website.

謝謝安迪，大家早上好。小感冒要先說聲抱歉，可能會咳嗽幾聲。我也想讓你知道我聽起來比實際情況更糟。但我們很高興今天早上能發言。和我們通常的格式一樣，我們將參考收益演示，可以在我們的網站上找到。

While you locate that, I wanted to say a few opening comments. Our business performance in the first quarter was strong and consistent with the qualitative comments we made in the earnings call. The last earnings call, we delivered record quarterly sales, up over 7% year-over-year through a combination of increased volumes, the contribution of new business ramp-ups and price increases flowing through. Profitability was meaningfully improved as well due to better price cost spread realized in the quarter.

當您找到它時，我想說幾句開場白。我們在第一季度的業務表現強勁，與我們在財報電話會議上發表的定性評論一致。在上一次財報電話會議上，我們實現了創紀錄的季度銷售額，通過銷量增加、新業務增長的貢獻和價格上漲相結合，同比增長超過 7%。由於本季度實現了更好的價格成本價差，盈利能力也得到了顯著改善。

In addition to strong financial performance this quarter, we continued to deliver significant business growth for the future, adding approximately $85 million in additional new wins at full annual value, a record amount of new business awards for a single quarter, and we are revising our 2023 $100 million new wins guidance to $150 million of new wins. 90% of this first quarter wins were in our Electric Systems business, and 90% of the wins are on electric vehicles, including vans, trucks and other non-Class A vehicles. We continue to win globally with new customers and new products, diversifying our customer base and further upgrading our revenue mix toward electrical systems.

除了本季度強勁的財務業績外，我們繼續為未來實現顯著的業務增長，按年度總價值增加了約 8500 萬美元的額外新勝利，創下了單季度新業務獎勵數量的記錄，我們正在修訂我們的2023 年 1 億美元的新贏額指導為 1.5 億美元的新贏額。第一季度 90% 的訂單來自我們的電氣系統業務，90% 的訂單來自電動汽車，包括貨車、卡車和其他非 A 級車輛。我們繼續在全球範圍內贏得新客戶和新產品，使我們的客戶群多樣化，並進一步升級我們的收入結構，轉向電氣系統。

During the quarter, we made progress on working capital through a focus on receivables and inventory. We have almost completely worked down our built-up COVID insurance layers, and we are back to more historical working capital levels as a percentage of sales. COVID is behind us as far as material supply chains are concerned. And our net debt leverage is back to 2x ahead into the warrants this year. On the customer front, we are all about customer satisfaction, and we had a good quarter on that front. Across all of our products globally and especially in the new area of electric systems where we're making -- we're working on many electric vehicle platforms globally.

本季度，我們通過關注應收賬款和存貨在營運資金方面取得了進展。我們幾乎完全消除了我們建立的 COVID 保險層，並且我們回到了更多的歷史營運資金水平（佔銷售額的百分比）。就材料供應鏈而言，COVID 已經落後於我們。今年，我們的淨債務槓桿率回到認股權證的 2 倍。在客戶方面，我們一切都是為了客戶滿意，我們在這方面有一個很好的季度。在我們全球的所有產品中，尤其是在我們正在製造的電氣系統的新領域——我們正在全球範圍內開發許多電動汽車平台。

We've broken to the China market in Q1 in an electric vehicle customer who will be our anchor partner for a new high-voltage electrical system. Our customers are satisfied and we are working with many of them globally to advance their electric vehicle platforms, and we're proud to be doing so. Our growth profitability and cash flow strategies are working, and we are looking to accelerate our efforts and cash flow strategies this year.

我們在第一季度打入了中國市場的電動汽車客戶，該客戶將成為我們新高壓電氣系統的主要合作夥伴。我們的客戶很滿意，我們正在全球範圍內與他們中的許多人合作，以推進他們的電動汽車平台，我們為此感到自豪。我們的增長盈利能力和現金流戰略正在發揮作用，我們希望在今年加快我們的努力和現金流戰略。

We're transforming our revenue mix organically by expanding our market share with new customers and getting on to new vehicle platforms, both internal combustion engine powertrains and electric vehicle powertrains. We're transforming our cost profile organically as well by automating processes, moving to low-cost countries and lowering our cost of quality. We believe that we are delivering best-in-class quality and service to our customers. With the progress we've made in our strategy, we also believe that we are on track to deliver against our long-term sales goal commitment of $1.5 billion in 2027.

我們正在通過擴大我們在新客戶中的市場份額和進入新的車輛平台（包括內燃機動力總成和電動汽車動力總成）來有機地改變我們的收入組合。我們正在通過自動化流程、轉移到低成本國家和降低我們的質量成本來有機地改變我們的成本狀況。我們相信我們正在為我們的客戶提供一流的質量和服務。隨著我們在戰略方面取得的進展，我們也相信我們有望實現 2027 年 15 億美元的長期銷售目標承諾。

Our current revenue run rate, combined with the ramp-up of our cumulative $500 million in new annualized wins since the start of this program 3 years ago, gives us improved line of sight to that target already. And we intend to win another $500 million of new business between now and the end of '27. We also are making meaningful progress towards our long-term EBITDA goal of 9% and 27%. We have caught up on price cost, and we continue to ramp up our $30 million per year of cost out program to protect our margins and offset new wage inflation that we are still seeing.

我們目前的收入運行率，加上自 3 年前該計劃啟動以來累計 5 億美元的新年度勝利的增加，使我們已經改善了實現該目標的視線。從現在到 27 年底，我們打算再贏得 5 億美元的新業務。我們也在朝著 9% 和 27% 的長期 EBITDA 目標取得有意義的進展。我們已經趕上了價格成本，我們將繼續增加每年 3000 萬美元的成本支出計劃，以保護我們的利潤並抵消我們仍然看到的新的工資通脹。

We expect additional accretive margin flow from our new business wins as well, and it will drive us towards our 27 target of 9%. Our '23 outlook continues to be positive. Our quarterly sales and EBITDA margins through the year should look very similar to Q1, with the possibility of a minor slowdown in top line in the fourth quarter, which is tied to lower industry truck build forecast. Our new business win rate is on track for $150 million a year. The year is off to a strong start, maybe even an inflection point for us, and our best performance is ahead of us. And CVG's future is very bright. We are already reporting out at a $1 billion revenue run rate while still ramping up many of our new wins.

我們預計我們的新業務也將帶來額外的利潤增長，這將推動我們實現 27% 的 9% 目標。我們的 23 年前景仍然樂觀。我們全年的季度銷售額和 EBITDA 利潤率應該與第一季度非常相似，第四季度的收入可能會略有放緩，這與較低的行業卡車建造預測有關。我們的新業務贏率有望達到每年 1.5 億美元。今年開局良好，甚至可能是我們的轉折點，我們最好的表現就在眼前。 CVG的未來非常光明。我們已經報告了 10 億美元的收入運行率，同時仍在增加我們的許多新勝利。

Our profit rates are already improved, and we plan to maintain them and grow them with an aggressive cost-out program, price maintenance program and a continued mix shift. Q2 is now underway and on track, and timing and the amount of new wins in the first quarter, centered inner electrical systems gives us further confidence regarding the outlook for 2023. And for what it's worth, we're also at record employment and added over 600 people in the first quarter alone. We're often running as a company, and one of our core values is to have fun while we work, and we're absolutely having a blast.

我們的利潤率已經有所提高，我們計劃通過積極的成本削減計劃、價格維持計劃和持續的產品組合轉變來維持和提高利潤率。第二季度現在正在進行中併步入正軌，第一季度的時間安排和新勝利的數量，以內部電氣系統為中心，使我們對 2023 年的前景更有信心。而且就其價值而言，我們的就業人數也創歷史新高，並補充說僅第一季度就有 600 多人。我們經常作為一家公司運營，我們的核心價值觀之一是在工作時享受樂趣，而且我們絕對玩得很開心。

Now I'd like to turn to the investor deck, starting with Page 1, please. Our team delivered strong results in the first quarter, highlighted by record levels of revenue and profitability levels that were in line with our long-term targets. As is outlined on the slide, we delivered net sales of $263 million, which is up 7.5% year-over-year and adjusted EBITDA of almost $20 million, which is up 47% year-over-year. This results in an adjusted EBITDA margin of 7.5%, putting us on track to hit our long-term target of 9% as we continue to win new business, optimize our costs and improve profitability. As I mentioned earlier, we had a very strong quarter for new business wins. And furthermore, we continue to see the realization of our pricing efforts, and we are delivering on our $30-plus million cost-out plan at the same time.

現在我想轉到投資者平台，請從第 1 頁開始。我們的團隊在第一季度取得了強勁的業績，突出表現在創紀錄的收入水平和符合我們長期目標的盈利水平。正如幻燈片中概述的那樣，我們實現了 2.63 億美元的淨銷售額，同比增長 7.5%，調整後的 EBITDA 接近 2000 萬美元，同比增長 47%。這導致調整後的 EBITDA 利潤率為 7.5%，隨著我們繼續贏得新業務、優化成本和提高盈利能力，我們有望實現 9% 的長期目標。正如我之前提到的，我們在贏得新業務方面有一個非常強勁的季度。此外，我們繼續看到我們定價工作的實現，同時我們正在實施 30 多萬美元的成本支出計劃。

Turning to Page 4. Our team continued to execute our strategy during the quarter. And as I already mentioned, we are making significant progress towards transforming our revenue mix through the success of our electric systems new business wins, and we're committed to driving cost out as well to improve profitability as we go. We have good visibility to the remaining of 2023. We fully expect to accelerate our efforts position us further along our growth trajectory. Our revenue run rate is already reporting at $1 billion, and we're underway with ramping up another $350 million in new wins over the past few years.

翻到第 4 頁。我們的團隊在本季度繼續執行我們的戰略。正如我已經提到的，我們正在通過我們的電力系統新業務的成功在轉變我們的收入組合方面取得重大進展，並且我們致力於降低成本並提高我們的盈利能力。我們對 2023 年剩下的時間有很好的預見性。我們完全希望加快我們的努力，使我們在增長軌跡上走得更遠。我們的收入運行率已經報告為 10 億美元，並且我們正在努力在過去幾年中再增加 3.5 億美元的新勝利。

The impacts of our strategy execution were evident in our first quarter, and our EBITDA margin shows it. We're on track to hit our 9% margin target for 2027. We continue to win new business in Electrical Systems and it's a key focus for us. We set a record for wins in the quarter. And as I mentioned, we're increasing our guidance to $150 million for this year. Combined, we've already won over $0.5 billion in cumulative new revenue across 300 new vehicle platforms and a few other industrial platforms.

我們戰略執行的影響在第一季度顯而易見，我們的 EBITDA 利潤率也體現了這一點。我們有望在 2027 年實現 9% 的利潤率目標。我們將繼續贏得電氣系統領域的新業務，這是我們關注的重點。我們創造了本季度的勝利記錄。正如我所提到的，我們將今年的指導增加到 1.5 億美元。總而言之，我們已經在 300 個新汽車平台和其他幾個工業平台上贏得了超過 5 億美元的累計新收入。

Finally, we continue to optimize our ongoing business, and we will continue to address nonprofitable business areas. We are delivering on our cost out plans and we expect to reduce our debt leverage further in the coming quarters.

最後，我們繼續優化我們正在進行的業務，我們將繼續解決非盈利業務領域。我們正在實施我們的成本削減計劃，我們希望在未來幾個季度進一步降低我們的債務槓桿。

Turning to Page 5. Similar to the comments from the last quarter, our demand and market outlook is promising for the remainder of the year, supported by healthy forecast across our key end markets on this slide, we are increasingly confident in our positive 2023 outlook. Also, our large public customers are reporting strong year-to-date results, healthy order books and are expecting continued momentum and growth across end markets this year. These trends and results give us confidence that we're well positioned to participate in the growing demand from our customers and the industry and that we will build on a record level of revenues and new business wins we are achieving. And of course, we're doubling down our normal market growth via our new wins program and business growth on top of this market growth. These are additives.

翻到第 5 頁。與上一季度的評論類似，在本幻燈片中我們對主要終端市場的健康預測的支持下，我們對今年剩餘時間的需求和市場前景充滿希望，我們對我們積極的 2023 年前景越來越有信心.此外，我們的大型公共客戶報告了年初至今的強勁業績、健康的訂單，並預計今年終端市場將繼續保持增長勢頭。這些趨勢和結果使我們相信，我們有能力參與客戶和行業不斷增長的需求，並且我們將在創紀錄的收入水平和我們正在取得的新業務勝利的基礎上再接再厲。當然，我們正在通過我們的新勝利計劃和業務增長將我們的正常市場增長加倍，在此市場增長之上。這些是添加劑。

Turning to Page 6. Our business wins continue to cumulatively increase, and so does the contribution by year. This chart shows an increase of expected contribution from new business in ahead versus our last update. During the quarter, 90% of our new business wins were within Electrical Systems business and more specifically tied to electric vehicle production. Notable wins during the quarter included a contract to manufacture electrical system for an electric delivery van in North America and a contract to manufacture of electric systems for electric vehicle in China. These are important for us, especially the China one will act as an anchor customer for us as we expand our electric systems manufacturing operations in China, and we have already ordered the equipment to do so.

翻到第 6 頁。我們的業務勝利繼續累積增加，每年的貢獻也是如此。這張圖表顯示了與我們上次更新相比，未來新業務的預期貢獻有所增加。本季度，我們贏得的新業務中有 90% 屬於電氣系統業務，更具體地說，與電動汽車生產相關。本季度的顯著勝利包括在北美為電動送貨車製造電氣系統的合同以及在中國為電動汽車製造電氣系統的合同。這些對我們很重要，尤其是中國將成為我們擴大在中國的電氣系統製造業務時的主要客戶，我們已經訂購了設備。

Turning to Page 7. As we have highlighted in previous quarters, CVG stands to benefit and is participating in a secular transition of ICE powertrains to electric vehicles. Our secret exhaust in this space continues to be proprietary manufacturing software to make and test our products quickly and efficiently. Our speed, nimble and process engineering sets us apart from our competitors and is a key contributor during new business prospecting. This methodology and successful business prospecting has allowed us to move quickly and accurately and secure accretive new business in electric systems.

翻到第 7 頁。正如我們在前幾個季度強調的那樣，CVG 將從中受益，並且正在參與 ICE 動力總成向電動汽車的長期過渡。我們在這個領域的秘密排氣仍然是專有的製造軟件，可以快速有效地製造和測試我們的產品。我們的速度、靈活性和流程工程使我們從競爭對手中脫穎而出，並且是新業務勘探過程中的關鍵貢獻者。這種方法和成功的業務勘探使我們能夠快速、準確地採取行動，並確保在電氣系統中獲得增長的新業務。

We are continuing to target low to medium volumes, which we believe allows us to achieve a better margin profile. In terms of our targeted customer base, CVG targets customers with large total addressable markets within the commercial vehicle space and companies that service both electric vehicle and ICE portfolio systems across a variety of geographic markets. We are looking to replicate our North America business model globally. And as previously mentioned, we are adding a new plan for European production in Morocco, and we will cover these expansion projects in a moment.

我們將繼續以中低銷量為目標，我們相信這能讓我們獲得更好的利潤率。就我們的目標客戶群而言，CVG 的目標客戶是在商用車領域擁有大量潛在市場的客戶，以及為各種地理市場的電動汽車和 ICE 產品組合系統提供服務的公司。我們希望在全球複製我們的北美商業模式。如前所述，我們正在為摩洛哥的歐洲生產添加新計劃，稍後我們將介紹這些擴展項目。

Please turn the page to Slide 8. As we've discussed previously, CVG has a large-scale global capacity expansion program underway, bringing on a significant amount of state-of-the-art capacity in electric systems in multiple markets at the same time. This is made possible due to our record-breaking pace of new business wins and highlighted here on Page 8 of the 3 expansion projects that are underway right now and expect it to be ramped up in making electric system products before year-end 2023.

請翻到幻燈片 8。正如我們之前所討論的，CVG 正在進行大規模的全球產能擴張計劃，同時在多個市場帶來大量最先進的電力系統產能時間。這之所以成為可能，是因為我們贏得新業務的速度破紀錄，並在第 8 頁上強調了目前正在進行的 3 個擴建項目，預計該項目將在 2023 年底之前加快生產電氣系統產品。

These new facilities are in low-cost country locations that are close to end markets and our customers and also provide a springboard to enable a higher continued rate of additive new wins. All these projects are on schedule. We are being aggressive but measured in our approach to adding capacity.

這些新設施位於低成本的國家/地區，靠近終端市場和我們的客戶，還提供了一個跳板，以實現更高的持續增材新勝利率。所有這些項目都在按計劃進行。我們正在積極進取，但在我們增加容量的方法中是謹慎的。

Turning to Page 9. As you can see, our strategic focus on reducing cyclicality, expanding our customer roster and increasing our exposure to secular growth trends is paying off. We've reduced our exposure to Class 8 trucks. We've grown our revenue share of electric systems, and we've reduced the weight of large customers in our mix. Our strategic focus here as well as our continued strong pace of new wins, will shift the mix even further in our favor 527. As a reminder, the mix shift brings a more attractive growth, margin and return on invested capital profile for CVG.

翻到第 9 頁。正如您所看到的，我們的戰略重點是減少週期性、擴大我們的客戶名單以及增加我們對長期增長趨勢的接觸正在取得成效。我們減少了對 8 級卡車的投資。我們增加了電氣系統的收入份額，並且減少了大客戶在我們組合中的權重。我們在這裡的戰略重點以及我們持續強勁的新勝利步伐，將進一步改變我們對 527 有利的組合。提醒一下，這種組合轉變為 CVG 帶來了更具吸引力的增長、利潤率和投資資本回報率。

Turning to Page 10. CVG is fully committed to driving shareholder value in both the short term and long term, and we are delivering improved profitability in our ongoing business, and we are improving or exiting unprofitable or risky business. We'll continue driving our costs and allocating our capital and resources to support strategic growth opportunities. The work we've done to reposition our portfolio is evident in today's results, and we look forward to continued execution of our strategic priorities.

翻到第 10 頁。CVG 完全致力於在短期和長期推動股東價值，我們正在提高我們正在進行的業務的盈利能力，我們正在改善或退出無利可圖或有風險的業務。我們將繼續降低成本並分配我們的資本和資源以支持戰略增長機會。我們為重新定位我們的投資組合所做的工作在今天的結果中顯而易見，我們期待著繼續執行我們的戰略重點。

We're deepening our exposure to the secular trend in electrification and automation, increasingly winning new business, which improves our growth outlook, diversifies our customer base and reduces the cyclicality of our business. We expect to generate meaningful cash flow, which will further fund our growth, drive debt paydown and allow for strategic acquisitions and increase our exposure to this powerful trend.

我們正在加深對電氣化和自動化長期趨勢的了解，贏得越來越多的新業務，這改善了我們的增長前景，使我們的客戶群多樣化並減少了我們業務的周期性。我們期望產生有意義的現金流，這將進一步為我們的增長提供資金，推動債務償還並允許戰略收購併增加我們對這一強大趨勢的敞口。

Turning to Page 11. We are highlighting where we are relative to our long-term commitments we've made to you. On our last call, we told you that we were set up to win and make money in '23, deliver a year of record revenue, higher EBITDA and continued free cash flow and debt pay down. After the first quarter, we're even more confident in these statements, and we're more confident in our ability to achieve our long-term targets. These 2027 targets are well within our reach, and we just need to continue doing what we're already doing.

翻到第 11 頁。我們強調了我們與我們對您做出的長期承諾相關的情況。在我們的最後一次電話會議上，我們告訴您我們的目標是在 23 年贏得勝利並賺錢，實現創紀錄的一年收入、更高的 EBITDA 以及持續的自由現金流和債務償還。第一季度之後，我們對這些陳述更有信心，我們對實現長期目標的能力更有信心。這些 2027 年目標完全可以實現，我們只需要繼續做我們已經在做的事情。

In addition to our expected $150 million in new wins this year, we're still targeting at least $100 million in new wins each successive year, concentrated with intellectual systems. We expect these wins to diversify our product portfolio, our customer base and drive growth and profitability. We expect strong cash flow, which, combined with our disciplined approach to working capital will be prioritized for additional debt paydown and to potentially fund bolt-on M&A. Our business transformation remains on track, and we are increasingly confident in delivering against our committed goals of $101.5 billion of revenue and 9% EBITDA margins.

除了我們今年預期的 1.5 億美元的新勝利外，我們還計劃連續每年至少獲得 1 億美元的新勝利，主要集中在智能係統上。我們預計這些勝利將使我們的產品組合、我們的客戶群多樣化，並推動增長和盈利。我們預計強勁的現金流，再加上我們嚴格的營運資金方法，將優先用於額外的債務償還，並可能為補強併購提供資金。我們的業務轉型仍在進行中，我們越來越有信心實現我們承諾的 1015 億美元收入和 9% EBITDA 利潤率的目標。

Turning to Page 12. And before I turn the call back over to Andy, I'll just quickly update you on how we are envisioning 2023 playing out compared to 2022. We expect 2023 to be our third record revenue here in a row on the back of steady vehicle demand as forecasted by ACT and FTR, higher pricing and new business revenue. We expect both gross margin and EBITDA improvement with pricing ahead of inflation, new business ramp-ups and additional cost out. The cash flow generated will drive down our leverage ratios through further debt paydown in addition to higher EBITDA levels. We expect to secure $150 million in new business wins this year, and we are seeing the vast majority of our wins in electric systems.

翻到第 12 頁。在我將電話轉回給 Andy 之前，我將快速向您介紹我們對 2023 年與 2022 年相比的設想。我們預計 2023 年將是我們連續第三個創紀錄的收入ACT 和 FTR 預測穩定的汽車需求，更高的定價和新業務收入。我們預計毛利率和 EBITDA 都會隨著通貨膨脹、新業務增長和額外成本的提前定價而改善。除了更高的 EBITDA 水平外，產生的現金流將通過進一步償還債務來降低我們的槓桿率。我們預計今年將獲得 1.5 億美元的新業務勝利，並且我們看到了我們在電氣系統中的絕大部分勝利。

We remain on track to hit our $30 million of cost out target for this year, and we have reduced our exposure to large start-up costs in the vehicle solutions business. We will exit 2023 in a better financial position than we entered with a strong future outlook and a strong balance sheet that provides optionality to drive additional growth.

我們仍然有望實現今年 3000 萬美元的成本支出目標，並且我們已經減少了在汽車解決方案業務中承擔巨額啟動成本的風險。到 2023 年，我們將以比進入時更好的財務狀況退出，擁有強大的未來前景和強大的資產負債表，提供選擇權以推動額外增長。

With that, I'd like to turn the call back over to Andy as he gives you a more detailed review of our financial results, and I get a new cost drop. Andy, I'd like to turn it over to you.

有了這個，我想把電話轉回給安迪，因為他給你更詳細的財務結果審查，我得到了新的成本下降。安迪，我想把它交給你。

Thank you, Harold, and good morning, everyone. If you are following along in the presentation, please turn to Slide 14. First quarter 2023 revenue was $262.7 million as compared to $244.4 million from the prior year period. The increase in revenues was primarily driven by increased pricing to offset material cost increases and increased vehicle-related sales, offset by lower volume in the Industrial Automation segment.

謝謝哈羅德，大家早上好。如果您正在關注演示文稿，請轉到幻燈片 14。2023 年第一季度的收入為 2.627 億美元，而去年同期為 2.444 億美元。收入增長的主要原因是價格上漲以抵消材料成本的上漲和車輛相關銷售額的增加，但被工業自動化部門的銷量下降所抵消。

Foreign currency translation also unfavorably impacted the first quarter of 2023 revenues by $3.6 million or 1.5%. The company reported consolidated operating income of $14.6 million for the first quarter of 2023 compared to income of $4 million in the prior year period. The increase was driven by higher margins, partially offset by higher SG&A. The first quarter of 2023 adjusted operating income was $15.4 million. Adjusted EBITDA was $19.8 million for the first quarter up 47% year-over-year compared to $13.5 million in the prior year.

外幣換算也對 2023 年第一季度的收入產生了 360 萬美元或 1.5% 的不利影響。該公司報告稱，2023 年第一季度的綜合營業收入為 1460 萬美元，而去年同期的收入為 400 萬美元。這一增長是由更高的利潤率推動的，部分被更高的 SG&A 所抵消。 2023 年第一季度調整後營業收入為 1540 萬美元。第一季度調整後的 EBITDA 為 1,980 萬美元，同比增長 47%，而去年同期為 1,350 萬美元。

Adjusted EBITDA margins were 7.5%, an expansion of 200 basis points as compared to adjusted EBITDA margins of 5.5% in the first quarter of 2022. Interest expense was $2.9 million as compared to $2 million in the first quarter of 2022. Net income for the quarter was $8.7 million or $0.26 per diluted share as compared to net income of $4 million or $0.12 per diluted share in the prior year period.

調整後的 EBITDA 利潤率為 7.5%，與 2022 年第一季度調整後的 EBITDA 利潤率為 5.5% 相比擴大了 200 個基點。利息支出為 290 萬美元，而 2022 年第一季度為 200 萬美元。本季度淨收入為 870 萬美元或稀釋後每股收益 0.26 美元，而去年同期的淨收入為 400 萬美元或稀釋後每股收益 0.12 美元。

Turning to the segment results on this slide. You can see the performance of our 3 vehicle-related segments on a combined basis. The combined revenues increased 20% to $253 million compared to $210 million in the year ago quarter. Combined adjusted operating income was $25.1 million, an increase of 122% compared to $11.3 million in the prior year period. The growth in adjusted operating profit, again demonstrates the powerful impact that our focus on price cost management as well as growth in the electrical systems and aftermarket segments help on our bottom line.

轉到這張幻燈片上的細分結果。您可以綜合查看我們 3 個與車輛相關的細分市場的表現。與去年同期的 2.1 億美元相比，合併收入增長了 20%，達到 2.53 億美元。合併後的調整後營業收入為 2510 萬美元，與去年同期的 1130 萬美元相比增長了 122%。調整後營業利潤的增長再次表明，我們對價格成本管理的關注以及電氣系統和售後市場領域的增長對我們的利潤產生了巨大影響。

In our Vehicle Solutions segment, first quarter revenues increased 15% to $160.6 million compared to the year ago quarter. Primarily, due to increased sales volume and increased pricing to offset material cost increases. Operating income for the first quarter increased 112% to $13.4 million compared to operating income of $6.3 million in the prior year period.

在我們的車輛解決方案部門，第一季度的收入與去年同期相比增長了 15%，達到 1.606 億美元。主要是由於銷量增加和價格上漲以抵消材料成本的增加。與去年同期的 630 萬美元營業收入相比，第一季度營業收入增長 112% 至 1340 萬美元。

First quarter 2023 adjusted operating income, which excludes special costs, increased 106% to $13.5 million, primarily driven by increased pricing, lower fringe cost and overhead reduction. Our Electrical Systems segment achieved revenues of $54.7 million, an increase of 37% compared to the year ago first quarter, resulting from increased pricing to offset material cost pass-through and new business wins. Operating income was $6.1 million, an increase of $4.3 million compared to the first quarter of 2022 due to increased volume, pricing and manufacturing efficiencies.

2023 年第一季度調整後營業收入（不包括特殊成本）增長 106% 至 1350 萬美元，這主要是由於定價上漲、附加成本降低和管理費用減少。我們的電氣系統部門實現了 5470 萬美元的收入，與去年第一季度相比增長了 37%，這是由於價格上漲以抵消材料成本轉嫁和新業務的勝利。由於銷量、定價和製造效率的提高，營業收入為 610 萬美元，比 2022 年第一季度增加 430 萬美元。

Our aftermarket and accessories segment, revenues increased 25% to $37.6 million compared to the year ago quarter, primarily resulting from increased sales volume and increased pricing to offset material cost pass-through. Operating income was $5.6 million, an increase of 82% compared to operating income of $2.6 million in the prior year period. The increase is primarily attributable to increased pricing, offsetting moderating cost inflation. Our Industrial Automation segment produced first quarter revenues of $9.7 million, a decrease of 71% as compared to $34.1 million in the first quarter of 2022 due to lower demand levels.

我們的售後市場和配件部門的收入與去年同期相比增長了 25%，達到 3760 萬美元，這主要是由於銷量增加和價格上漲以抵消材料成本轉嫁。營業收入為 560 萬美元，比去年同期的 260 萬美元營業收入增長 82%。這一增長主要歸因於價格上漲，抵消了適度的成本通脹。由於需求水平下降，我們的工業自動化部門第一季度的收入為 970 萬美元，與 2022 年第一季度的 3410 萬美元相比下降了 71%。

Operating loss was $0.9 million, a decrease compared to the operating income of $3.7 million in the year ago quarter due to volume reduction in restructuring expenses. Adjusted operating loss was $0.2 million compared to income of $4.1 million in the prior year period. The restructuring efforts are expected to improve performance in this segment throughout the rest of 2023.

由於重組費用的減少，營業虧損為 90 萬美元，低於去年同期的營業收入 370 萬美元。調整後的營業虧損為 20 萬美元，而去年同期的收入為 410 萬美元。預計重組工作將在 2023 年剩餘時間內改善該部門的業績。

Highlighted on Slide 15, our key financial trends in our business. As I previously mentioned, this quarter EBITDA and margin percentage strongly improved on a sequential basis. The sequential improvements were driven by pricing, our focus on operational excellence and new business launches. Additionally, our net leverage continues to decline as we have generated increasing profitability. Therefore, we believe our net leverage will decline further in 2023 as our strategy continues to deliver financial results. For the remainder of this year, our financial priorities will be to drive additional cost savings to generate higher profitability, free cash flow and invest in our new growing business platforms.

幻燈片 15 突出顯示了我們業務中的主要財務趨勢。正如我之前提到的，本季度 EBITDA 和利潤率環比大幅改善。連續的改進是由定價、我們對卓越運營的關注和新業務的推出推動的。此外，隨著我們的盈利能力不斷提高，我們的淨槓桿率繼續下降。因此，我們認為，隨著我們的戰略繼續取得財務成果，我們的淨槓桿率將在 2023 年進一步下降。在今年剩餘時間裡，我們的財務重點將是推動額外的成本節約，以產生更高的盈利能力、自由現金流，並投資於我們新的增長業務平台。

Thank you, and I will now turn the call back over to Harold for some closing comments. Harold?

謝謝，我現在將把電話轉回哈羅德，徵求一些結束意見。哈羅德？

Thank you, Andy. I'd like to thank all of our employees for their contribution to our solid financial results and strategic priorities and the pace of the progress that we've been able to achieve in our strategic plan has been better than we thought and is fueled by a strong focus on our transformation strategy and a clear prioritization of our initiatives and our large and vibrant growing and new customer base. We're a much stronger company in 2023, and we're ready to capitalize on secular growth and higher profits and the trends towards vehicle electrification, and we look forward to sharing our successes for you in future calls.

謝謝你，安迪。我要感謝我們所有的員工為我們穩健的財務業績和戰略重點所做的貢獻，以及我們在戰略計劃中取得進展的速度比我們想像的要好，並且受到高度關注我們的轉型戰略，並明確優先考慮我們的舉措以及我們龐大而充滿活力的不斷增長的新客戶群。到 2023 年，我們將成為一家更強大的公司，我們已準備好利用長期增長和更高的利潤以及汽車電氣化的趨勢，我們期待在未來的電話會議中與您分享我們的成功。

I'd now like to turn the call over to our operator and open the line up for questions. Thank you.

我現在想把電話轉給我們的接線員並打開提問隊列。謝謝。

(Operator Instructions) Your first question comes from Joe Gomes with NOBLE Capital.

（操作員說明）您的第一個問題來自 NOBLE Capital 的 Joe Gomes。

So I was wondering on the vehicle-related segments, could you kind of break out for us what was the contribution from volume versus pricing in the quarter?

所以我想知道在與車輛相關的領域，您能否為我們介紹一下本季度銷量與定價的貢獻是什麼？

So for the quarter, we say with 20% growth in terms of revenues in 3 vehicle-related segments. Thinking about roughly 60% of that came from volume and 40% of that from pricing.

因此，對於本季度，我們說 3 個與汽車相關的領域的收入增長了 20%。考慮其中大約 60% 來自數量，40% 來自定價。

And I know you had talked in the past, I think you had like one more major contract that you needed to work on pricing. Have you been able to get that finalized or that's something you're still working on?

而且我知道你過去曾談過，我認為你還有一份主要合同需要進行定價工作。您是否能夠最終確定或您仍在努力？

We were able to finalize it, and we'll get extra contribution from that contract beginning April 1. So it's already in place.

我們能夠完成它，我們將從 4 月 1 日開始的合同中獲得額外的貢獻。所以它已經到位。

I noticed corporate and other SG&A expenses rose fairly big on a percentage basis in the quarter. What was behind that? Was that just on the cost reduction program expenses? Or are there other things that would drive that?

我注意到本季度公司和其他 SG&A 費用按百分比增長相當大。那背後是什麼？那隻是關於成本削減計劃的費用嗎？還是有其他因素會驅動它？

A couple of things there. One is we invested in some of the SG&A costs to drive our cost reduction program. So we see some opportunity to invest and drive higher profitability there. And then the other thing that contributed to it was some of the variable compensation last year was lower in terms of incentive comp. So those are the main driver for SG&A.

那裡有幾件事。一是我們投資了一些 SG&A 成本來推動我們的成本削減計劃。因此，我們看到了在那裡進行投資並提高盈利能力的機會。然後導致它的另一件事是去年的一些可變薪酬在激勵補償方面較低。所以這些是 SG&A 的主要驅動力。

On the new plant startups, just wondering how they're going, how they're proceeding, -- are they all on schedule for all the new plans?

關於新工廠初創公司，只是想知道他們進展如何，進展如何，他們是否都按計劃完成所有新計劃？

Yes, Aldama which is near Chihuahua, Mexico is significantly ahead of schedule. We may get to open that one a quarter early. And Morocco and Agua Prieta are on schedule. Agua Prieta scheduled to produce Q4 and Morocco in Q3. And we have -- they have to start up too, Joe. We have new wins for new vehicles that are ramping up, both in Europe and in the United States that need our electrical systems inside of them. So we're on the clock and we have backup plans case some unforeseen action happens. But in the vehicle world, you have to do these things in a high-quality manner and path as the term and past quality regimens, and we're on track and significantly ahead in Aldama.

是的，位於墨西哥奇瓦瓦州附近的阿爾達瑪明顯提前。我們可能會提前一個季度打開那個。摩洛哥和 Agua Prieta 如期進行。 Agua Prieta 計劃在第三季度生產第四季度和摩洛哥。我們已經 - 他們也必須啟動，喬。我們在歐洲和美國的新車上取得了新的勝利，這些車輛需要我們的電氣系統。所以我們隨時待命，我們有備用計劃以防發生一些不可預見的行動。但在汽車領域，你必須以高質量的方式和路徑來做這些事情，就像術語和過去的質量方案一樣，我們正在走上正軌，並且在 Aldama 方面遙遙領先。

Congrats on the quarter, and I'll pass it on for other questions.

祝賀這個季度，我會把它傳遞給其他問題。

Your next question comes from John Franzreb with Sidoti.

你的下一個問題來自 John Franzreb 和 Sidoti。

Congratulations on the great quarter. I'd like to start with the margin profile, either the gross or the operating delivery you want to address it, but increased significantly. And it seems to me there's a bunch of buckets that could have drove that. It could have been volume, pricing, cost savings, new business or the exclusion start-up costs. Can you kind of walk through the puts and takes of how those changes impacted the gross and operating margin?

祝賀這個偉大的季度。我想從利潤率概況開始，無論是您想要解決的毛利率還是運營交付，但顯著增加。在我看來，有一堆桶可以推動它。它可能是數量、定價、成本節約、新業務或排除啟動成本。您能否介紹一下這些變化如何影響毛利率和營業利潤率？

So I think you're right, John, all of the above, you mentioned. I would say the biggest impact is pricing our recovery of the inflation that we saw last year. So our price/cost management is our single biggest contributor. At the same time, we also see a strong volume leverage in our vehicle segments, but that those are kind of offset by our Industrial Automation side. The other thing that really adds to our profitability is the cost reduction. So as Harold mentioned, we are on track, and we are pretty confident of our cost-out program. So that's helped us a lot in that.

所以我認為你是對的，約翰，你提到了以上所有內容。我想說最大的影響是對我們去年看到的通脹復甦進行定價。因此，我們的價格/成本管理是我們最大的貢獻者。與此同時，我們也看到我們的車輛部門有很強的銷量槓桿，但這些在某種程度上被我們的工業自動化方面所抵消。真正增加我們盈利能力的另一件事是成本降低。因此，正如哈羅德提到的，我們正在走上正軌，我們對我們的成本支出計劃非常有信心。所以這對我們有很大幫助。

And then lastly, last year, as you remember, the supply chain disruption as well as the Ukraine war generated some inefficiency in the business, and we were able to recover and get back on efficiency level. So those really help us in driving the strong results.

最後，去年，正如你所記得的那樣，供應鏈中斷以及烏克蘭戰爭導致業務效率低下，我們得以恢復並回到效率水平。所以這些真的幫助我們推動了強勁的結果。

Now Andy and Harold, I think you deferred giving specifics on the cost savings plans. Now that it's starting to really impact the P&L, can you maybe talk a little bit about what the actions are you are taking and how much you realized about $30 million so far in the first quarter?

現在，安迪和哈羅德，我認為你們推遲了對成本節約計劃的具體說明。現在它開始真正影響損益表，你能不能談談你正在採取的行動以及你在第一季度到目前為止實現了多少 3000 萬美元？

Yes. So we have multiple categories of cost out. We have procurement. We have cost efficiency. We have plant overhead consolidation, and we have global supply chain optimization, and we have some SG&A. And we have about 350 projects in a project tracker. And in the first quarter, we were ahead of plan. We did almost $9 million of cost out in the plan. So the plans are delivering. It's the highest amount of cost out we've attempted. And coupled with Joe's question and Andy's answer, we've added some talented people and continuous improvement. And we're opportunity risk-- we're opportunity-rich. And we're actually contemplating plans to increase our focus on this effort. But it brings CapEx with it. It bring some CapEx with it. And we'll report out on that in the future. We're not trying to withhold it. We were hesitant to make many public comments because it was a first-time thing for us, John, but it's turning out to be much more successful than we thought.

是的。所以我們有多個類別的成本支出。我們有採購。我們有成本效益。我們有工廠管理費用整合，我們有全球供應鏈優化，我們還有一些 SG&A。我們在項目跟踪器中有大約 350 個項目。在第一季度，我們提前完成了計劃。我們在計劃中花費了將近 900 萬美元。所以計劃正在實施。這是我們嘗試過的最高成本。加上喬的問題和安迪的回答，我們增加了一些有才華的人並不斷改進。我們是機會風險——我們是機會豐富的。我們實際上正在考慮增加對這項工作的關注的計劃。但它帶來了資本支出。它帶來了一些資本支出。我們將在未來對此進行報告。我們並沒有試圖阻止它。我們對發表許多公開評論猶豫不決，因為這對我們來說是第一次，約翰，但事實證明它比我們想像的要成功得多。

Your next question comes from Gary Prestopino with Barrington Research.

您的下一個問題來自 Barrington Research 的 Gary Prestopino。

I just want to be clear. You're saying that the margins that you guys have attained in this quarter are pretty much sustainable throughout the year. Is that correct?

我只想說清楚。你是說你們在本季度獲得的利潤率在全年幾乎是可持續的。那是對的嗎？

Yes.

是的。

And then as far as the SG&A expense, somebody asked a question about that. It is somewhat elevated. I think there was a couple of puts and takes there. But as we're looking at this, should it kind of stay at that almost 7.8% of revenue as we go through the year?

然後就 SG&A 費用而言，有人問了一個問題。它有點高。我認為那裡有一些投入和投入。但當我們看到這一點時，它是否應該在我們全年保持在收入的近 7.8%？

Yes, I would say that's about right. So for the year, again, we are capitalizing on a lot of opportunities that we see. So there's a lot of good payback projects that we are very happy to invest. I think we'll stay along the level for the moment. We'll continue to see the profit component.

是的，我會說這是正確的。因此，今年，我們再次利用了我們看到的許多機會。所以有很多我們很樂意投資的回報良好的項目。我想我們暫時會保持在這個水平上。我們將繼續看到利潤部分。

I was just going to say that it's mainly people costs. So we'll be able to flex it if needed.

我只是想說這主要是人力成本。因此，如果需要，我們將能夠對其進行調整。

When you guys released numbers for Q4, you said about $85 million -- I'm sorry, $100 million of new business wins. You got $85 million of that in the quarter and raised it by $50 million. I mean what was the surprise there that occurred that caused it to your -- almost guess that entire new business win in Q1 and then given the ability to raise it. Was there something there that you didn't think you were going to sign and it came over the transom?

當你們發布第四季度的數字時，你們說大約 8500 萬美元——對不起，1 億美元的新業務獲勝。你在本季度獲得了其中的 8500 萬美元，並增加了 5000 萬美元。我的意思是那裡發生的意外是什麼導致你 - 幾乎可以猜測整個新業務在第一季度獲勝，然後有能力提高它。那裡有什麼東西是你認為你不會簽署的，它是從橫樑上過來的嗎？

So we have a big pipeline. And in previous decks, we've reported out on the size of the pipeline. And we are running about 1 out of 6 hit rate. And so Gary, it's around an 18% hit rate. And so at all times, including right now, we have finish line proposals that we've made to customers to produce their products for them. And they have a few people they're going to choose from. And so we were able to win a decent amount of business in the quarter because our pipeline -- the timing of our pipeline came in into the quarter. And it was not really a higher hit rate per se. It was really a timing of decisioning. And if you look at the rest of this year and the timing of decisioning is it's still at a high rate, there's a lot of awarding being done in our industry.

所以我們有一個很大的管道。在之前的平台中，我們已經報告了管道的大小。我們的命中率大約為六分之一。所以加里，它的命中率約為 18%。因此，在任何時候，包括現在，我們都會向客戶提出為他們生產產品的終點線建議。他們有幾個人可以選擇。因此，我們能夠在本季度贏得大量業務，因為我們的管道 - 我們管道的時間進入了本季度。而且它本身並不是真正更高的命中率。這真是一個決定的時機。如果你看看今年剩下的時間，決定的時間仍然很高，我們的行業已經完成了很多獎項。

And in the case of Electrical Systems, we have one of our main competitors, Gary's namely (inaudible) a public company in Germany, and they filed bankruptcy in the first quarter. And so, our amount of looks actually is increasing. And so, we're organizing to do that and get our capacity lined up to be able to more aggressively bid. So our pipeline, coupled with a big industry participant kind of in trouble is giving us confidence to increase the outlook for the year. And we're not going to -- we didn't increase the outlook for next year or the year after we said $100. So it looks like this year, we're going to have a more fruitful environment than we expected.

就 Electrical Systems 而言，我們有一個主要競爭對手，即 Gary 的（聽不清）德國的一家上市公司，他們在第一季度申請破產。因此，我們看起來的數量實際上在增加。因此，我們正在組織起來這樣做，並調整我們的能力，以便能夠更積極地出價。因此，我們的管道，再加上一個陷入困境的大型行業參與者，讓我們有信心增加今年的前景。而且我們不會 - 我們沒有增加明年或我們說 100 美元後一年的前景。所以看起來今年，我們將擁有一個比我們預期的更富有成果的環境。

Does that German competitor-- are they liquidating or are they just going to be restructuring?

那個德國競爭對手——他們是在清算還是只是要重組？

The German bankruptcy loss, they have the equivalent of a prepack than a white knight who's well-known billionaire from Austria went in with them. But it's going to be like any bankruptcy, there will be good old-fashioned litigation from the bondholders that have to take a haircut and all that. So it's going to go on for a while. There's a core process, but it's well known that the vehicle industry is pretty tight and they have constrained capital. So we're getting more looks than we expected, and we already had a vibrant pipeline. So we feel pretty confident in 150.

德國的破產損失，他們有一個相當於白衣騎士的背包，奧地利著名的億萬富翁和他們一起進去了。但這將像任何破產一樣，債券持有人將進行良好的老式訴訟，他們必須削減開支等等。所以它會持續一段時間。有一個核心流程，但眾所周知，汽車行業非常緊張，而且他們的資金也很緊張。所以我們得到的外觀比我們預期的要多，而且我們已經有了一個充滿活力的管道。所以我們對 150 很有信心。

Your next question comes from Barry Haimes with Sage Management.

您的下一個問題來自 Sage Management 的 Barry Haimes。

Congrats on the great quarter. My question is on the various EV programs. Could you give us a little thumbnail sketch on average, how the margin progression looks? I presume there's some amount of cost before you start production. And then when you do start production, how many quarters to ramp to normal? And then are the normalized margins on these programs anticipated to be less than equal to or greater than, let's say, your legacy truck OE margins?

祝賀這個偉大的季度。我的問題是關於各種 EV 程序。你能給我們一個平均的小縮略圖嗎？保證金的進展情況如何？我想在你開始生產之前會有一些成本。然後當你開始生產時，多少個季度才能恢復正常？那麼，這些項目的標準化利潤率是否預計會小於或大於，比方說，您的傳統卡車 OE 利潤率？

I'm going to address the program life cycle part of it, and then I'm going to hand it to Andy to talk about the margin comments. So the typical EV program is about 2 years. So we get an award, and then we go through some prototyping and first article testing and then the vehicle maker goes through some prototype vehicle testing and then we solidify and freeze the design. And then we have to PPAP bill of material in the manufacturing process, so that they're repetitive and consistent through every vehicle and set up for metrics for quality and on time and all that. And we've been expensing that cost as we go. And when we started this 3 years ago, we were reporting out what our start-up costs were because they were impeding our profits when we were just getting started.

我將解決它的程序生命週期部分，然後我將把它交給 Andy 來討論頁邊評論。所以典型的 EV 項目大約是 2 年。所以我們得到了一個獎項，然後我們進行了一些原型設計和首件測試，然後汽車製造商進行了一些原型車測試，然後我們鞏固並凍結了設計。然後我們必須在製造過程中使用 PPAP 物料清單，以便它們在每輛車中都是重複和一致的，並設置質量和準時等指標。我們一直在花費這筆費用。當我們 3 年前開始這個項目時，我們報告了我們的啟動成本是多少，因為它們在我們剛起步時阻礙了我們的利潤。

Spent today, we're more than covering those start-up costs and they're in our number. And they're becoming less and less on a percentage basis because we're growing. We also reported that we were not going to aggressively pursue start-up seating business because it had a very high start-up cost. And we had a well-known one that was in the press last year. And we basically have focused in on our bull's-eye of electric systems. And actually, the start-up cost profile is minimal. With regards to the plant startups, the reason why the electric systems business is accretive from an ROIC standpoint is their CapEx light. Our secret sauce in that business is actually software. It's not capital equipment. So we have a special internal software program that we've designed and we're using globally that allow us to take our designs, put them straight on to a plasma screen and have in testing that's automated.

今天花的錢，我們不僅支付了這些啟動成本，而且它們在我們的數量中。由於我們在成長，它們所佔的百分比越來越少。我們還報告說，我們不打算積極從事啟動座椅業務，因為它的啟動成本非常高。去年我們有一個著名的媒體報導。我們基本上專注於電力系統的靶心。實際上，啟動成本概況是最小的。對於工廠初創公司，從 ROIC 的角度來看，電力系統業務之所以增長，是因為他們的資本支出很低。我們在該業務中的秘訣實際上是軟件。這不是資本設備。因此，我們有一個我們設計的特殊內部軟件程序，我們正在全球範圍內使用它，使我們能夠將我們的設計直接放到等離子屏幕上，並進行自動化測試。

And we have really obviated the need for a lot of capital. And so we have a very good setup here. When a plant starts up, of course, there's some overhead inefficiencies. And the way we're playing the game here is that we're pre-selling out most of the capacity and then ramping up the plants with business we already have. So it's actually about a 1 quarter breakeven kind of a deal when we get started, but I'll now turn it over to Andy to talk further about margins.

而且我們確實避免了對大量資金的需求。所以我們在這裡有一個很好的設置。當然，當工廠啟動時，會出現一些管理費用低下的問題。我們在這裡玩遊戲的方式是預售大部分產能，然後用我們已有的業務擴大工廠。因此，當我們開始時，這實際上是一個四分之一的收支平衡交易，但我現在將其交給安迪進一步討論利潤率。

So in terms of the electrical system margin, so you can see today, we are already at a low double-digit OI operating income margin level. Just say that the new business are coming in at an accretive margin profile. So we're happy to continue to launch the business and that will actually continue to give us improvements to the overall business unit margin.

因此，就電氣系統利潤率而言，您今天可以看到，我們已經處於兩位數的低 OI 營業收入利潤率水平。只是說新業務的利潤率正在增加。因此，我們很高興繼續開展這項業務，這實際上將繼續提高我們整體業務部門的利潤率。

Your next question comes from Steven Martin with Slater Capital Management.

你的下一個問題來自斯萊特資本管理公司的史蒂文馬丁。

So aftermarket parts, finally, I guess you turned it on in the first quarter. How did the new business perform? And what should we expect over the balance of the year?

所以售後零件，最後，我猜你在第一季度打開了它。新業務表現如何？我們應該對今年餘下的時間有何期待？

So we're out of the gates on that and it's been performing as expected with a meaningful expansion of our profit margins. So basically, it's a direct-to-customer play versus going through an intermediary. And so, the end customer has a price they're willing to pay. And so, we have a direct channel to the end user there. And so, you should expect to see our profit rates gradually increase in that business. The business itself grows around 4% to 5% unit volume and another amount based on annual price increases. So you'll see modest growth relative to electric vehicles, electric systems where we're having explosive growth for us. So it will be a modest growth outlook but with margin expansion.

因此，我們對此不以為然，並且隨著我們的利潤率顯著擴大，它的表現一直如預期。所以基本上，這是一種直接面向客戶的方式，而不是通過中介。因此，最終客戶有一個他們願意支付的價格。因此，我們有一個直接通往那裡最終用戶的渠道。因此，您應該期望看到我們在該業務中的利潤率逐漸增加。業務本身的單位銷量增長約 4% 至 5%，另一個增長基於年度價格上漲。因此，你會看到相對於我們正在爆炸式增長的電動汽車、電力系統的適度增長。因此，這將是一個溫和的增長前景，但利潤率會擴大。

You, at one point said it was a $100 million opportunity over what time frame. A, is that still your target and over what time frame?

你曾經說過在什麼時間範圍內這是一個價值 1 億美元的機會。 A，這仍然是你的目標嗎？在什麼時間範圍內？

So the business in the first quarter was $37 million. So it's well above the $100 million rate. And our goal in that business is in the 2027 business plan, our goal is to double that business. And it involves replicating our business strategy in APAC, Asia Pacific. It involves replicating our business strategy in Europe, and it involves expanding our product line into other aftermarket products other than Class 8 truck seats.

因此，第一季度的業務為 3700 萬美元。所以它遠高於 1 億美元的利率。我們在該業務中的目標是在 2027 年業務計劃中，我們的目標是將該業務翻一番。它涉及在亞太地區復制我們的業務戰略。它涉及在歐洲複製我們的業務戰略，涉及將我們的產品線擴展到 8 級卡車座椅以外的其他售後市場產品。

So when you look at 2027 from a margin perspective, what would you expect the operating margin of that to be?

因此，當您從利潤率的角度來看 2027 年時，您預計其營業利潤率是多少？

It will be accretive to our company average that we've articulated it.

我們已經闡明了這一點，這將增加我們公司的平均水平。

So overall, our long-term target is 9% EBITDA margin. So now see we're well on our way there and clearly, growing the electrical system business and the aftermarket business are the ones that will drive to that target. So the mix shift is going to be meaningful and help contribute to that target.

所以總的來說，我們的長期目標是 9% 的 EBITDA 利潤率。因此，現在看到我們進展順利，很明顯，電氣系統業務和售後市場業務的增長將推動實現這一目標。因此，混合轉變將是有意義的，並有助於實現該目標。

And turning to unfortunately, the lagging business. How low does that go? And can we expect to arrest or at least break even in that over the course of the year?

不幸的是，轉向落後的業務。那有多低？我們能否期望在這一年中停止或至少收支平衡？

So it's bottomed out now. We think that we're nearing an inflection point up, if you look at the leading indicators from Amazon and other e-commerce shippers, they're suggesting that they're going to restart modest rebuilding. So we get orders when they build new parcel distribution centers. That's the automation part of it that we're participating in, and we have nonwarehouse automation business as well. So it's not going to get worse, I can say that. And we have hope that in the second half is better than the first half. It's too early to say that, though, this is a PO business. If we have POs in hand, I would make more confident comments here. But as of right now, we're expecting a turn in the second half, but we're yet to see it.

所以現在已經見底了。我們認為我們正接近一個拐點，如果你看看亞馬遜和其他電子商務托運人的領先指標，他們暗示他們將重新開始適度的重建。因此，當他們建立新的包裹配送中心時，我們會收到訂單。這是我們參與的自動化部分，我們也有非倉庫自動化業務。所以它不會變得更糟，我可以這麼說。我們希望下半場比上半場好。不過，現在說這是 PO 業務還為時過早。如果我們手頭有採購訂單，我會在這裡做出更自信的評論。但就目前而言，我們預計下半場會有轉機，但我們還沒有看到。

And last year, it started to fall off in the second quarter, but really fell off in the back half. So the comparisons for that business get easier as we get through the year.

而去年，二季度開始下滑，真正下滑的是後半段。因此，隨著我們度過這一年，對該業務的比較變得更加容易。

Exactly right.

非常正確。

There are no further questions at this time, Mr. Bevis back over to you.

現在沒有其他問題了，貝維斯先生回到你身邊。

Thank you, everyone, for calling in today. We appreciate your interest and investment in our company, and we're on track with creating value here and having fun while we do it, and we look forward to speaking with you in the next quarter. And with that, we'll end the call for today.

謝謝大家今天的來電。我們感謝您對我們公司的興趣和投資，我們正致力於在這裡創造價值並在此過程中獲得樂趣，我們期待在下個季度與您交談。至此，我們將結束今天的電話會議。

Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a great day.

女士們，先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。祝你有美好的一天。