Commercial Vehicle Group Inc (CVGI) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to CVG.s Fourth Quarter and Full Year 2023 earnings conference call.

早安，女士們、先生們，歡迎參加 CVG.2023 年第四季和全年財報電話會議。

During today's presentation, all parties will be in the listen-only mode following the presentation, the conference will be opened for questions with instructions to follow at.

在今天的演示期間，所有各方將在演示後處於僅聽模式，會議將開放供提問並遵循說明。

As a reminder, this conference is being recorded.

提醒一下，本次會議正在錄製中。

I would now like to turn the call over to Mr. Andy Zhang, Chief Financial Officer.

我現在想把電話轉給財務長張安迪先生。

Please go ahead.

請繼續。

Thank you, operator, and welcome, everyone, to our conference call.

謝謝接線員，歡迎大家參加我們的電話會議。

Joining me on the call today is James way, President and CEO of CVG this morning, we will provide a brief company update as well as commentary regarding our fourth quarter and full year 2023 results, after which we will open the call for questions.

今天早上，CVG 總裁兼執行長 James Way 與我一起參加電話會議，我們將提供簡短的公司最新動態以及有關我們第四季度和 2023 年全年業績的評論，之後我們將開始電話提問。

As a reminder, this conference call is being webcast and our Q4 2023 earnings call presentation, which we will refer to during this call is available on our website both may contain forward-looking statements, including but not limited to, expectations for future periods regarding market trends, cost saving initiatives and new product initiatives among others.

謹此提醒，本次電話會議正在網絡直播，我們將在本次電話會議期間參考的2023 年第四季度收益電話會議演示文稿可在我們的網站上查看，兩者都可能包含前瞻性陳述，包括但不限於對未來時期的預期市場趨勢、成本節約措施和新產品措施等。

Actual results may differ from anticipated results because of certain risks and uncertainties.

由於某些風險和不確定性，實際結果可能與預期結果不同。

These risks and uncertainties may include, but are not limited to economic conditions in the markets in which CVG operates, fluctuations in the production volumes of vehicles for which CVG is a supplier of financial covenants, compliance and liquidity risk associated with conducting business in foreign countries and currencies and other risks as detailed in our SEC filings.

這些風險和不確定性可能包括但不限於 CVG 營運所在市場的經濟狀況、CVG 作為財務契約供應商的車輛產量的波動、與在國外開展業務相關的合規和流動性風險我們向SEC 提交的文件中詳細介紹了貨幣和其他風險。

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

我現在將把電話轉給詹姆斯，以提供公司的最新情況。

Thank you, Andy, and good morning, everyone.

謝謝你，安迪，大家早安。

It is an absolute pleasure to be joining you on my first earnings call as President and CEO of CVG, having served on the Board of Directors since 2020, I've had the opportunity to witness the strength of CVG's business fundamentals the transformative strategy in place and the remarkable growth potential in this organization with great strategy, great people and great customers.

很高興能作為 CVG 總裁兼首席執行官參加我的第一次財報電話會議，自 2020 年以來一直在董事會任職，我有機會見證 CVG 業務基礎的實力和現有的轉型戰略以及該組織具有卓越的策略、優秀的員工和優秀的客戶的顯著成長潛力。

I was appointed President and CEO, December of 2023 and there was a lot of good progress already underway from the leadership of our Chairman and Interim CEO, Bob Griffin.

我於 2023 年 12 月被任命為總裁兼首席執行官，在我們的董事長兼臨時首席執行官鮑勃·格里芬 (Bob Griffin) 的領導下，我們已經取得了很多良好的進展。

I want to thank Bob for all his efforts in the months prior to my appointment as President and CEO, as this is the first time, I'm speaking to the majority of you.

我要感謝鮑伯在我被任命為總裁兼執行長之前幾個月所做的一切努力，因為這是我第一次與你們大多數人交談。

I'd like to offer a bit of my perspective on the opportunity I see ahead for CVG., I'm sure you're curious what will change with me as CEO.

我想談談我對 CVG 未來機會的看法。我相信您很好奇我作為執行長將會發生什麼變化。

And to be clear, my aim is not to change our strategy but rather to enhance it in my role as a Board member, I saw firsthand the hard work and planning that went into developing our transformation strategy.

需要明確的是，我的目標不是改變我們的策略，而是加強我作為董事會成員的角色，我親眼目睹了製定我們的轉型策略所付出的辛勤工作和規劃。

We think we are seeing the early benefits of that transformation as our new business wins drive top line growth and margin improvement, even as we see a downturn in the Class A. truck builds.

我們認為，我們正在看到這種轉型的早期好處，因為我們的新業務勝利推動了營收成長和利潤率提高，儘管我們看到 A 級卡車製造量下滑。

And this improved profitability is leading to reduced leverage and a healthier balance sheet.

獲利能力的提高導致槓桿率降低和資產負債表更健康。

Additionally, we have provided our outlook for the full year 2024 more on this later.

此外，我們稍後也提供了 2024 年全年的展望。

My goal is to best equip our teams to continue driving this transformation and to make sure we have the right culture in place to enable our teammates to drive us forward every day in order to build and maintain this growth focused culture, we need to do three key things.

我的目標是為我們的團隊提供最好的裝備，以繼續推動這一轉型，並確保我們擁有正確的文化，使我們的隊友能夠每天推動我們前進，為了建立和維持這種以成長為中心的文化，我們需要做三件事關鍵的事。

One, develop and reward our employees to excite our customers, and three deliver results to increase our value to shareholders.

一是培養和獎勵我們的員工以激發客戶的興趣，三是交付成果以增加我們對股東的價值。

Fundamentally, it's all about people, processes and capability.

從根本上來說，這一切都與人員、流程和能力有關。

My goal as CEO will be to make sure we are developing all three aspects through strong teamwork, continuous improvement and building capability.

作為首席執行官，我的目標是確保我們透過強有力的團隊合作、持續改進和能力建設來發展所有三個方面。

I am incredibly excited about that opportunity ahead of us at CVG.

我對 CVG 面前的這個機會感到非常興奮。

Before turning to the details of the quarter, I want to highlight that Bill Johnson was elected to the Board of Directors in December.

在討論本季的詳細資訊之前，我想強調一下，比爾·約翰遜 (Bill Johnson) 在 12 月被選為董事會成員。

He brings a wealth of operating experience and expertise across a variety of business areas, including his current role as CEO and the Board Member of the Board of Directors of AVAIL infrastructure solutions.

他在各個業務領域擁有豐富的營運經驗和專業知識，包括目前擔任 AVAIL 基礎設施解決方案執行長和董事會成員。

Bill also served as President and CEO of Welbilt from October 2018 to July 2022.

Bill 也曾於 2018 年 10 月至 2022 年 7 月期間擔任 Welbilt 總裁兼執行長。

And as the President and CEO and COO of Chart Industries from July 16 through June 2018.

並於 2018 年 7 月 16 日至 6 月期間擔任 Chart Industries 的總裁兼執行長兼營運長。

He possesses over 30 years of global experience, and we're excited to have Bill join our Board.

他擁有 30 多年的全球經驗，我們很高興比爾加入我們的董事會。

I have no doubt CVG will benefit from his skills and perspectives.

我毫不懷疑 CVG 將從他的技能和觀點中受益。

Now I'd like to turn your attention to the supplemental earnings presentation starting on slide 4, following solid year-over-year improvements in the first few quarters of the year.

現在，我想將您的注意力轉向從幻燈片 4 開始的補充收益演示，繼今年前幾季同比穩步改善之後。

Our fourth quarter results were negatively impacted by a work stoppage at a customer facility and reduced demand.

我們第四季的業績受到客戶工廠停工和需求減少的負面影響。

We reported net sales of $223 million in the quarter at an adjusted EBITDA of $10.3 million as we continue to win and integrate new business, optimize costs and work to improve profitability of our business.

我們報告本季淨銷售額為 2.23 億美元，調整後 EBITDA 為 1,030 萬美元，因為我們繼續贏得和整合新業務、優化成本並努力提高業務盈利能力。

Our continued focus on margins as well as the contribution of new wins helped drive a 26% increase in full year adjusted EBITDA to 6.8% of 140 basis points compared to last year.

我們對利潤率的持續關注以及新勝利的貢獻幫助推動全年調整後 EBITDA 與去年相比增長了 26%，達到 140 個基點的 6.8%。

For the full year, we generated $19 million in free cash flow.

全年我們產生了 1900 萬美元的自由現金流。

And this, combined with our strong EBITDA, our net leverage ratio declined to 1.5 times from 2.2 times.

再加上我們強勁的 EBITDA，我們的淨槓桿率從 2.2 倍下降到 1.5 倍。

Speaking of new wins recorded in excess of $150 million of new wins this year on a fully ramped basis, continuing our strong track record of success consistent with our strategy.

說到新勝利，今年在全面提升的基礎上取得了超過 1.5 億美元的新勝利，延續了我們與我們的策略一致的良好成功記錄。

These wins continue to be focused within our Electrical Systems segment and support the product ramp-up at our two new plants in Mexico and Morocco, which are focused on meeting the demand growth in electrical systems.

這些勝利繼續集中在我們的電氣系統領域，並支持我們在墨西哥和摩洛哥的兩家新工廠的產品提升，這些工廠專注於滿足電氣系統的需求成長。

We are also currently expanding our footprint with an additional new plant under construction in Morocco.

目前，我們也在摩洛哥建造一座新工廠，以擴大我們的業務範圍。

Turning to slide 5, I'd like to take this opportunity to highlight some recent strategic actions we've taken, which all serve.

轉向投影片 5，我想藉此機會強調我們最近採取的一些策略行動，這些行動都是有用的。

As a reminder of our ongoing focus to align costs and improve margins in CVG.

提醒我們，我們一直致力於調整成本並提高 CVG 的利潤率。

First, we are closing one vehicle solutions facility in North America and shifting the production to other locations in line with our goal of lowering our manufacturing costs and improving vehicle solutions margins.

首先，我們將關閉北美的汽車解決方案工廠，並將生產轉移到其他地點，以實現降低製造成本和提高汽車解決方案利潤率的目標。

Second, we are taking additional steps to reduce organizational cost and align resources to support our highest growth product lines.

其次，我們正在採取額外措施來降低組織成本並調整資源以支援我們成長最快的產品線。

These actions are part of our ongoing efforts to make sure we are cost competitive and improve our profitability over time.

這些行動是我們持續努力的一部分，以確保我們具有成本競爭力並隨著時間的推移提高我們的獲利能力。

Finally, we announced the sale of our finished tech business in the vehicle solutions segment in January of this year.

最後，我們在今年 1 月宣佈出售車輛解決方案領域的成品技術業務。

While not a large transaction, it focuses our business portfolio more on our core growth opportunities and demonstrates our commitment to strategic capital allocation.

雖然不是一項大型交易，但它使我們的業務組合更專注於我們的核心成長機會，並體現了我們對策略資本配置的承諾。

These recent actions should Echo well with our long-stated transformation strategy to improve the mix and profitability of our business through the growth of our Electrical Systems business.

這些最近的行動應該很好地呼應我們長期制定的轉型策略，透過電氣系統業務的成長來改善我們業務的組合和獲利能力。

And with that, I'd like to turn the call back to Andy for a more detailed review of our financial results.

說到這裡，我想把電話轉回給安迪，讓他更詳細地審查我們的財務表現。

Thank you, James, and good morning, everyone.

謝謝你，詹姆斯，大家早安。

If you are following along in the presentation, please turn to slide 6, consolidated fourth quarter 2023 revenue was $223.1 million as compared to $234.9 million in the prior year period.

如果您正在閱讀演示文稿，請翻到幻燈片 6，2023 年第四季的綜合收入為 2.231 億美元，而去年同期為 2.349 億美元。

The decrease in revenues is due primarily to the impacts of a strike at a vehicle solution customer facility, which more than offset an increase in electrical system revenues Foreign currency translation favorably impacted fourth quarter 2023 revenues by $1.8 million or 0.7%.

收入下降主要是由於車輛解決方案客戶設施罷工的影響，這遠遠抵消了電氣系統收入的成長。外幣換算對 2023 年第四季營收產生了 180 萬美元或 0.7% 的有利影響。

Adjusted EBITDA was $10.3 million for the fourth quarter compared to $13.3 million in the prior year.

第四季調整後 EBITDA 為 1,030 萬美元，上年同期為 1,330 萬美元。

Adjusted EBITDA margins were 4.6%, down 110 basis points as compared to adjusted EBITDA margins of 5.7% in the fourth quarter of 2022, driven primarily by lower volumes and strike impact.

調整後 EBITDA 利潤率 4.6%，較 2022 年第四季調整後 EBITDA 利潤率 5.7% 下降 110 個基點，這主要是由於銷售下降和罷工影響。

Interest expense was $2.4 million as compared to $2.9 million in the fourth quarter of 2022.

利息支出為 240 萬美元，而 2022 年第四季為 290 萬美元。

The decrease in interest expense was primarily related to lower average debt balances during the respective periods, partially offset by higher interest rates on variable rent.

利息支出的減少主要與各期間平均債務餘額較低有關，但部分被可變租金利率上升所抵銷。

Net income for the quarter was $23.3 million, or $0.7 per diluted share as compared to a net loss of $32 million or negative $0.98 per diluted share in the prior year.

本季淨利為 2,330 萬美元，即稀釋後每股收益 0.7 美元，而前一年淨虧損為 3,200 萬美元，即稀釋後每股負 0.98 美元。

Adjusted net income for the quarter was $2.9 million or $0.09 per diluted share as compared to $1.4 million or $0.04 per diluted share in the prior year.

本季調整後淨利為 290 萬美元，即稀釋後每股收益 0.09 美元，而前一年為 140 萬美元，即稀釋後每股收益 0.04 美元。

Consolidated full year 2023 revenue was $994.7 million as compared to $981.6 million in the prior year period.

2023 年全年合併收入為 9.947 億美元，而去年同期為 9.816 億美元。

The increase in revenues is due primarily to pricing and an increase in electrical system volume.

收入的增加主要是由於定價和電氣系統容量的增加。

Foreign currency translation favorably impacted full year 2023 revenues by $2.0 million or 0.2%.

外幣換算對 2023 年全年收入產生了 200 萬美元或 0.2% 的有利影響。

Adjusted EBITDA was $67.6 million for the full year, up 26% compared to the prior year.

全年調整後 EBITDA 為 6,760 萬美元，較上年成長 26%。

Adjusted EBITDA margins were 6.8%, up 140 basis points as compared to adjusted EBITDA margins of 5.4% in 2022, driven by gross margin expansion, slightly offset by higher SG&A net income for the full year was $49.4 million or $1.47 per diluted share as compared to a net loss of $22 million or negative $0.68 per share in the prior year.

受毛利率擴張推動，調整後EBITDA 利潤率，但全年SG&A 淨利潤增加略有抵消，為4,940 萬美元，或稀釋後每股收益1.47 美元上一年淨虧損為 2,200 萬美元，即每股負 0.68 美元。

Adjusted net income for the year was $30.2 million, or $0.9 per diluted share as compared to $16.4 million or $0.51 per diluted share in the prior year.

本年度調整後淨利為 3,020 萬美元，即稀釋後每股收益 0.9 美元，而前一年為 1,640 萬美元，即稀釋後每股收益 0.51 美元。

Turning to slide 7, I would like to highlight a few items on the adjusted EPS bridge, which include our adjustments to GAAP EPS as well as one additional special item.

轉向幻燈片 7，我想強調調整後 EPS 橋上的一些項目，其中包括我們對 GAAP EPS 的調整以及一項額外的特殊項目。

First, we reversed a charge we took last year for deferred tax valuation allowance due to improved profitability in our US operations Second, we took a restructuring charge related to the footprint optimization and cost reduction efforts that James discussed totaling $0.05 per share.

首先，由於我們美國業務盈利能力的提高，我們取消了去年收取的遞延稅項估值津貼的費用。其次，我們收取了與詹姆斯討論的足跡優化和成本削減工作相關的重組費用，總計每股0.05 美元。

Additionally, we were negatively impacted by a strike related work stoppage at one of our customers' facilities during the quarter, which we estimate negatively impacted earnings by $0.06 per share.

此外，本季我們的一家客戶工廠因罷工而停工，這對我們產生了負面影響，我們估計這對每股盈餘產生了 0.06 美元的負面影響。

Adjusting for these items, our EPS would have been $0.15 per share.

在對這些項目進行調整後，我們的 EPS 將為每股 0.15 美元。

Now moving to the segment results beginning on Slide 8.

現在轉到從投影片 8 開始的分段結果。

Our Electrical Systems segment achieved revenues of $56.2 million, an increase of 19% compared to the year ago fourth quarter, resulting from increased sales volume, including the impact of new customers and increased pricing.

我們的電氣系統部門實現營收 5,620 萬美元，比去年第四季成長 19%，這得益於銷售量的增加，包括新客戶的影響和定價的提高。

Adjusted operating margin was 11.6%, an increase of 30 basis points compared to Q4 of 2022, driven by increased sales volume and improved pricing.

受銷售增加和定價改善的推動，調整後營業利潤率為 11.6%，較 2022 年第四季成長 30 個基點。

For the full year, revenues were up 27%, again driven by pricing and new wins contribution.

全年收入成長了 27%，這再次受到定價和新勝利貢獻的推動。

Full year adjusted operating income margin increased 100 basis points as volume leverage and pricing more than offset inflationary impacts.

由於銷售槓桿和定價足以抵銷通膨影響，全年調整後營業利潤率增加了 100 個基點。

Evident in these results are the impacts of our new business wins and the ramp-up of our two new plants in Mexico and Morocco, which remain on track to support these new wins.

這些結果顯而易見的是我們的新業務勝利以及我們在墨西哥和摩洛哥的兩家新工廠的擴大所產生的影響，這些工廠仍在為這些新勝利提供支援。

Furthermore, given the continued new wins, we are currently in the early construction phase for our second site in Morocco.

此外，鑑於不斷取得的新勝利，我們位於摩洛哥的第二個基地目前正處於早期建設階段。

As always, we will remain focused on driving operational improvements and optimizing margins even after additional new wins, Flowfill Turning to slide 9, our Vehicle Solutions segment fourth quarter revenues decreased 10% to $128.4 million compared to the year ago quarter, due primarily to the impact of a strike related outage at one of our customer facilities.

與往常一樣，即使在獲得更多新勝利後，我們仍將繼續專注於推動營運改進和優化利潤，Flowfill 轉向幻燈片9，我們的車輛解決方案部門第四季度收入與去年同期相比下降10% ，至1.284 億美元，這主要是由於我們的一處客戶設施因罷工而停電造成的影響。

Adjusted operating margin for the fourth quarter was 3.1%, an increase of 20 basis points compared to the prior year period as increased pricing and cost controls more than offset the impact of lower volumes related to the strike.

第四季調整後營業利潤率為 3.1%，與去年同期相比增加了 20 個基點，因為定價和成本控制的加強足以抵消與罷工相關的銷售下降的影響。

For the full year, revenues were up 1%, driven by increased Lofe America Class eight production.

受 Lofe America Class 8 產量增加的推動，全年收入成長了 1%。

However, this was partially offset by lower volumes in Europe and China.

然而，這被歐洲和中國銷售下降部分抵消。

Full year adjusted operating income margin increased 350 basis points driven again by pricing and other cost controls.

在定價和其他成本控制的推動下，全年調整後營業利潤率成長了 350 個基點。

We are encouraged by the year-over-year improvement in vehicle solutions, but this segment remains a key focus for our team in terms of reducing cost, driving further operational improvements as well as winning business on new platforms, all with the goal of driving improved margins.

我們對車輛解決方案的逐年改進感到鼓舞，但在降低成本、推動進一步運營改進以及在新平台上贏得業務方面，這一領域仍然是我們團隊的重點關注點，所有這些目標都是推動提高利潤率。

Moving to slide 10, our aftermarket and Accessories segment revenues in the fourth quarter decreased 8% to $31.4 million compared to the year ago quarter, primarily resulting from decreased sales volume.

轉向幻燈片 10，我們的售後市場和配件部門第四季度的收入與去年同期相比下降了 8%，至 3140 萬美元，這主要是由於銷量下降。

It is also worth looking at our Q4 2022 performance benefited from a large backlog that did not repeat this year.

另外值得關注的是我們 2022 年第四季的業績，這得益於今年沒有出現的大量積壓訂單。

Adjusted operating margin for the fourth quarter was 11%, an increase of 20 basis points compared to the prior year period.

第四季調整後營業利益率為 11%，較去年同期成長 20 個基點。

The increase is primarily attributable to pricing.

成長主要歸因於定價。

For the full year, revenues were up 5%.

全年營收成長 5%。

Full year adjusted operating income margin increased 330 basis points, driven again by pricing as well as better cost performance.

在定價和更好的性價比的推動下，全年調整後營業利潤率成長了 330 個基點。

Turning to slide 11, our Industrial Automation segment produced fourth quarter revenues of $7.1 million, a decrease of 35% as compared to $11 million in the fourth quarter of 2022 due to ongoing challenging market conditions.

轉向投影片 11，由於市場環境持續充滿挑戰，我們的工業自動化部門第四季營收為 710 萬美元，比 2022 年第四季的 1,100 萬美元下降了 35%。

Adjusted operating margin was 3.7%, an increase of 850 basis points compared to the year ago quarter, primarily attributable to the efforts taken to rightsize the space for the full year revenues declined 56% as demand levels for this business remained at trough levels.

調整後營業利潤率為 3.7%，與去年同期相比增加了 850 個基點，這主要是由於該業務的需求水平仍處於低谷水平，全年收入下降了 56%，從而調整了空間規模。

Full year adjusted operating income margin declined 760 basis points, driven primarily by lower volumes as mentioned, we have taken actions to rightsize our cost structure in this business, and we have broadened our market focus to expand our revenue opportunity.

全年調整後營業利潤率下降了 760 個基點，主要是由於如上所述銷量下降，我們已採取行動調整該業務的成本結構，並且我們擴大了市場重點以擴大我們的收入機會。

That concludes my financial overview.

我的財務概覽到此結束。

I will now turn the call back over to James to discuss our key focus areas for 2024 as well as our outlook.

現在，我將把電話轉回給 James，討論我們 2024 年的重點領域以及我們的前景。

Thank you, Andy.

謝謝你，安迪。

Turning to slide 12, I'd like to highlight where our team will be focused in 2024.

轉向投影片 12，我想強調我們團隊 2024 年的重點工作。

This will be no surprise to hear that new business wins remain core to our culture at CVG and we continue to add additional customers and platforms.

聽到新的業務勝利仍然是我們 CVG 文化的核心，我們繼續增加更多的客戶和平台，這並不奇怪。

We look to continue our new business wins in 2024, building on the wins we recorded in 2023.

我們希望在 2023 年取得的勝利的基礎上，在 2024 年繼續取得新的業務勝利。

Our strategy calls for continued diversification of our revenue stream, which is key in transforming our revenue mix, reducing our cyclical exposure and improving profitability.

我們的策略要求我們的收入來源持續多元化，這是轉變我們的收入結構、減少週期性風險和提高獲利能力的關鍵。

Next, we will continue the planned ramp of our new electrical systems plants in Mexico and Morocco.

接下來，我們將繼續按計劃在墨西哥和摩洛哥建造新的電力系統工廠。

These expansions are key to growing our Electrical Systems business globally and are positioned to be cost competitive and provide outstanding service to our customers.

這些擴張是我們在全球發展電氣系統業務的關鍵，旨在具有成本競爭力並為我們的客戶提供卓越的服務。

Additionally, we are underway with the construction of an additional Moroccan plant, which will further support anticipated growth and supply chain optimization.

此外，我們正在建造一座額外的摩洛哥工廠，這將進一步支持預期的成長和供應鏈優化。

So before turning to the fiscal 2024 outlook.

在轉向 2024 財年展望之前。

I want to emphasize what we are doing with our three key businesses.

我想強調我們正在進行的三項關鍵業務。

One, we are focused on making Electrical Systems, our largest business.

第一，我們專注於使電氣系統成為我們最大的業務。

We are continuing to win new electrical business across multiple end markets and diversifying our product portfolio, including diversifying our vehicle platforms toward higher growth markets while simultaneously reducing our exposure to the cyclical class-A truck market.

我們將繼續在多個終端市場贏得新的電氣業務，並使我們的產品組合多樣化，包括使我們的車輛平台多樣化，以適應更高成長的市場，同時減少我們在週期性A 級卡車市場的風險。

Two, we are optimizing our vehicle solutions and aftermarket businesses as we see multiple levers to improve profitability through operational cost efficiency and making strategic sourcing decisions.

第二，我們正在優化我們的車輛解決方案和售後業務，因為我們看到可以透過營運成本效率和製定策略採購決策來提高獲利能力的多種手段。

We expect all of this to lead to improved working capital management and increase free cash generation.

我們預計所有這些都將改善營運資金管理並增加自由現金的產生。

Collectively, this fundamental business transformation is expected to improve our business mix and make CVG a larger, stronger and more profitable company in the coming years.

總的來說，這種根本性的業務轉型預計將改善我們的業務組合，並使 CVG 在未來幾年成為一家更大、更強、盈利能力更強的公司。

Turning to slide 13, I'll share a few thoughts on our outlook for 2024.

轉向幻燈片 13，我將分享一些關於 2024 年展望的想法。

You'll notice that for the first time, we are giving you quantitative annual guidance at the revenue and adjusted EBITDA level.

您會注意到，我們第一次為您提供收入和調整後 EBITDA 水準的定量年度指引。

We believe this will help indicate our underlying expectations for the performance of our business.

我們相信這將有助於表明我們對業務績效的基本期望。

Industry forecasts currently project a decline in North American Class A. truck builds of approximately 16% for the year.

目前產業預測預計今年北美 A 級卡車產量將下降約 16%。

However, we expect to benefit from growth in electrical systems revenue.

然而，我們預計將從電氣系統收入的成長中受益。

As a result, we are forecasting revenues to be in the range of $915 million to $1.015 billion with projected growth in Electrical Systems segment, notwithstanding the approximately 16% drop in North American Class A. truck build.

因此，儘管北美 A 級卡車製造量下降了約 16%，但我們預計電氣系統領域的收入將在 9.15 億美元至 10.15 億美元之間。

We expect adjusted EBITDA margins year over year to be relatively flat as implied by the midpoint of our guidance range of $60 million to $73 million EBITDA for 2024.

我們預計調整後的 EBITDA 利潤率將相對持平，正如我們 2024 年 EBITDA 指導範圍 6000 萬至 7300 萬美元的中點所暗示的那樣。

Our expectation is that this level of EBITDA generation offset by capital expenditures in the range of $25 million to $30 million for the year to drive further free cash flow, giving us the optionality of further debt paydown or potential inorganic growth opportunities should we find an attractive deal.

我們的預期是，這一水平的EBITDA 生成將被今年2500 萬至3000 萬美元的資本支出所抵消，以推動進一步的自由現金流，如果我們找到有吸引力的公司，我們可以選擇進一步償還債務或潛在的無機成長機會。交易。

Overall, we expect 2024 to show solid demand and revenue for the full year as we continue to win new business at a strong pace with wins centered in our Electrical Systems segment, we believe this level of resilience in the face of lower North American Class A. industry volumes is further evidence of the success of our diversification strategy.

總體而言，我們預計2024 年全年需求和收入將表現強勁，因為我們將繼續以強勁的速度贏得新業務，其中的勝利集中在我們的電氣系統領域，我們相信面對較低的北美A 級市場，這種彈性水準.產業規模進一步證明了我們多元化策略的成功。

With that, I will now turn the call back over to the operator to open up the lines for questions.

現在，我將把電話轉回給接線員，以開放提問線路。

Operator?

操作員？

Thank you.

謝謝。

So ladies and gentlemen, if you would like to ask a question, please press star followed by one on your touchtone phone.

女士們先生們，如果您想提問，請在按鍵式電話上按星號，然後再按一個。

You will then hear a three-tone prompt acknowledging your request.

然後您將聽到三聲提示音，確認您的要求。

And if you would like to withdraw from the question queue, please press star two.

如果您想退出問題佇列，請按星二號。

And if you're using a speakerphone, you will need to lift the handset before pressing any keys.

如果您使用免持電話，則需要先拿起聽筒，然後再按任何按鍵。

Please go ahead and press star one.

請繼續並按星一號。

Now if you do have any questions.

現在，如果您有任何疑問。

And your first question will be from Joe Gomes at NOBLE Capital.

你的第一個問題將來自 NOBLE Capital 的 Joe Gomes。

Please go ahead.

請繼續。

Good morning.

早安.

Thanks for taking my questions.

感謝您回答我的問題。

Good morning, Joe.

早安，喬。

Good morning, Joe.

早安，喬。

So James, give us a quick overview.

詹姆斯，請給我們快速概述一下。

It's great to hear your voice here on the call.

很高興在通話中聽到您的聲音。

I was wondering maybe you had been there two months and you give us some more insight into kind of your key findings or thoughts from the CYO. position here in the first two months?

我想知道也許您已經在那裡待了兩個月，並且您向我們提供了有關 CYO 的主要發現或想法的更多見解。前兩個月的位置？

Sure.

當然。

Joe. Yes, it's very exciting for me to come in.

喬.是的，能進來對我來說非常興奮。

And fortunately, I had the benefit of observing the company on the board from the other side of the table.

幸運的是，我有幸從桌子的另一邊觀察董事會上的公司。

So I've had the opportunity to get a lot closer during the time of our interim CEO, Bob Griffin.

因此，在我們的臨時執行長 Bob Griffin 任職期間，我有機會更加接近。

And that really excited me about the possibility of taking on this role.

這讓我對擔任這個角色的可能性感到非常興奮。

What I've seen since I've been here is that we have really good products that our customers value.

自從我來到這裡以來，我看到的是我們擁有客戶所重視的真正優質產品。

We have a very enthusiastic team really focused on growth and not just electrical but other aspects of our business.

我們擁有一支非常熱情的團隊，真正專注於成長，不僅是電力，還包括我們業務的其他方面。

We have a good approach to finding solutions to help customers solve their problems and also we are focused on making sure we deliver on commitments.

我們有一個很好的方法來尋找解決方案來幫助客戶解決他們的問題，我們也致力於確保兌現承諾。

So I think the team is very engaged.

所以我認為團隊非常投入。

I've had interaction with several of our top customers, and I've also had a chance to talk to a few investors as well.

我與我們的幾位頂級客戶進行了互動，也有機會與一些投資者交談。

And we all see continued improvement in the value of this business and the value proposition it brings to the market.

我們都看到這項業務的價值及其為市場帶來的價值主張不斷提高。

Thank you.

謝謝。

For that?

為了那個原因？

And are there any significant contracts that might be coming up for renewal in 2024 for rebid in '24?

是否有任何重要合約可能會在 2024 年續約以便在 24 年重新競標？

Well, as part of our new business win methodology here in.

好吧，作為我們新的業務獲勝方法的一部分。

I think what's happened in our and our results is that we have a funnel of our activities in the funnel of opportunities that we look at in align our product strategy to our customers quoting opportunities.

我認為我們和我們的結果中發生的事情是，我們在機會漏斗中建立了一個活動漏斗，我們著眼於將我們的產品策略與客戶引用的機會保持一致。

So across our businesses, there's a number of quoting opportunities that occur every week during the quarter.

因此，在我們的業務中，本季每週都會出現許多報價機會。

Some are prioritized higher.

有些優先級較高。

So we have a stronger value proposition against our competition.

因此，我們在競爭中擁有更強大的價值主張。

But we do have a focus on making sure that we pursue opportunities that are sustainable that have the appropriate margin profile and that fit within our manufacturing and supply chain footprint.

但我們確實專注於確保我們追求永續的機會，這些機會具有適當的利潤率，並且適合我們的製造和供應鏈足跡。

We do have some small ones we go after.

我們確實有一些我們追求的小目標。

And we also have some large wins we go after.

我們也取得了一些我們追求的重大勝利。

We don't disclose our customers specifics as we do book new business, but I would say that we're gaining a stronger reputation in the market of being able to provide what customers are looking for as well as a differentiated value proposition compared to our competitors, mainly in electrical systems.

我們在預訂新業務時不會透露客戶的具體信息，但我想說，與我們的客戶相比，我們能夠提供客戶所需的產品以及差異化的價值主張，因此在市場上獲得了更高的聲譽。競爭對手主要集中在電氣系統領域。

But we also have some strong areas in our plastics and trim business as well as are our seating business and aftermarket.

但我們在塑膠和裝飾業務以及座椅業務和售後市場方面也有一些優勢領域。

So it's not just electrical, it's across the board, but our focus is really accelerating electrical growth beyond market growth.

因此，這不僅僅是電力領域，而是全面的，但我們的重點是真正加速電力成長，超越市場成長。

And what are the goals and '24 for new business wins and have historically spent at least $100 million.

24 年新業務的目標是什麼，歷史上至少花了 1 億美元。

Are we still sticking to that or you get a higher number this year?

我們是否仍然堅持這一點，或者今年你會得到更高的數字？

Obviously, we want to continue the trend.

顯然，我們希望繼續這一趨勢。

We've been on.

我們一直都在。

And we it depends on the customer program cycles and when opportunities are quoted.

我們這取決於客戶規劃週期以及何時報價。

So our funnel is larger than our target.

所以我們的漏斗比我們的目標還要大。

We have different win rates in different segments and different products have different win rates based on the competition that we're going up against.

我們在不同的細分市場有不同的勝率，根據我們面臨的競爭，不同的產品有不同的勝率。

But generally, we expect to be in the $100 million or more range on our bookings going forward, we prove that we have a right to play and a right to win.

但總的來說，我們預計未來的預訂量將達到 1 億美元或更多，我們證明我們有權利參加比賽，也有權利獲勝。

It all comes down to strong execution and making sure we deliver on our commitments both to the customers as well as to our organization for the financial commitments of the program.

這一切都取決於強大的執行力，並確保我們兌現對客戶以及我們組織的規劃財務承諾。

So that's going to continue to be the focus and the great thing about this is we've had a couple of years of building momentum, and we're really starting to accelerate that and our reputation is increasing within our customers.

因此，這將繼續成為焦點，最棒的是我們已經有了幾年的發展勢頭，我們確實開始加速這一勢頭，我們在客戶中的聲譽正在提高。

Great.

偉大的。

And one more for me.

還有一張給我。

And I'll get back in queue.

我會回到隊列中。

So here, your expectations for '24, I'm trying to get like some of the what your thoughts are obviously, you know, the range is about $100 million.

所以在這裡，你對 24 年的期望，我試著去了解你的一些想法，你知道，範圍約為 1 億美元。

I'm assuming some of that deals with where the Class A. truck builds end up coming in.

我假設其中一些涉及 A 級卡車的建造最終進入的地方。

And then on the electrical systems side actually did a bang-up job top line was up 27%.

然後，在電氣系統方面，實際上取得了巨大的成功，收入成長了 27%。

Are you looking for that similar number, a similar rate of growth in 24 in that segment?

您是否正在尋找該細分市場 24 中類似的數字、類似的成長率？

Are it back maybe down closer to that 20% range or something else there?

它是否會回落到接近 20% 的範圍或其他地方？

Joel, let me let me answer that on so just described, are we already seeing the benefit of the new wins that we secured over the last few years.

喬爾，讓我回答剛才所描述的問題，我們是否已經看到了過去幾年我們取得的新勝利的好處。

So 2023 is really a strong year revenues growth for the Electrical Systems segment.

因此，2023 年對於電氣系統領域來說確實是營收成長強勁的一年。

We expect that you'll continue to see us launching business that we already won right now.

我們希望您會繼續看到我們推出我們現在已經贏得的業務。

That's why we have a range here is sometimes a customer launch schedule is out of our control and depends on many factors.

這就是為什麼我們在這裡有一個範圍，有時客戶的發佈時間表超出了我們的控制範圍，並且取決於許多因素。

So we expect that you'll continue to see good growth in our Electrical segment.

因此，我們預計您將繼續看到我們的電氣部門的良好成長。

Great.

偉大的。

Thanks for taking my questions.

感謝您回答我的問題。

Thanks, Joe.

謝謝，喬。

Next question will be from John Franzreb of Sidoti.

下一個問題將由西多蒂的約翰·弗蘭茲雷布提出。

Please go ahead.

請繼續。

Good morning, guys, and thanks for taking the questions.

早上好，夥計們，感謝您提出問題。

I'll start with the revenue loss at the strike on.

我將從罷工時的收入損失開始。

Can you talk a little bit about maybe the size of the revenue and was it lost stores with deferred into the first quarter?

您能否談談收入的規模以及是否會流失商店並推遲到第一季？

Maybe more color there would be helpful.

也許更多的顏色會有幫助。

Yes.

是的。

So on the strike at the customer level, actually lasted about six weeks of impacted us.

所以在客戶層面的罷工，實際上持續了大約六週的時間，對我們造成了影響。

We estimate it to be about $12 million in revenues for the quarter as the customer did not change the overall backlog.

我們估計該季度的收入約為 1200 萬美元，因為客戶沒有改變總體積壓訂單。

We expect that eventually they're going to put those lost vehicles back on the production schedule.

我們預計他們最終將這些丟失的車輛重新納入生產計劃。

The timing is a little unclear why now, because they also have their own manufacturing constraint.

現在還不清楚為什麼要這樣做，因為他們也有自己的製造限制。

But we expect that eventually we'll come back to the production.

但我們預計最終我們會回歸製作。

Excellent.

出色的。

And I guess if we start thinking about the classic truck on cycle and you let last quarter, I asked you how that how that how is the first quarter shaping up and you indicated is looking good.

我想如果我們開始考慮經典的自行車卡車，你讓上個季度，我問你第一季的情況如何，你表示看起來不錯。

I'll repeat the question.

我會重複這個問題。

How is not only the first quarter looking perhaps a second quarter looking relative to the current production rates that you finished at?

相對於您目前的生產力而言，不僅是第一季度，也許第二季度的情況又如何？

Yes, allows while we don't forecast a corner by corner, what our customers do have, as you can see on the market, it's public information about the ACT forecast, which is one of the more important for Castle use.

是的，雖然我們不會逐一預測，但我們的客戶所擁有的，正如您在市場上看到的那樣，是有關 ACT 預測的公開信息，這對於 Castle 使用來說是更重要的信息之一。

And so why now you see AT & T's actually expecting some decline from Q2 and beyond in terms of overall market production.

那麼，為什麼現在你會看到 AT&T 實際上預計第二季及以後的整體市場產量會下降。

So but we'll see we're still not seeing full visibility on our customers on schedule, but the ACT forecast is showing some drop off from Q2 and beyond.

因此，我們仍然無法按計劃全面了解客戶狀況，但 ACT 預測顯示較第二季及以後有所下降。

Got it.

知道了。

And just a little bit about the Mexican and Moroccan facilities.

簡單介紹一下墨西哥和摩洛哥的設施。

When would they be fully operational.

他們什麼時候才能全面投入營運。

As the Mexico facility launched in Q3 and the Morocco facility, the initial Morocco facility launched in Q4, and they are ramping up bringing on the new programs that we have won in prior years to those facilities of the new facility that's under construction in Morocco, the additional facility should be online in Q1 next year.

隨著墨西哥設施在第三季度啟動，摩洛哥設施（最初的摩洛哥設施在第四季度啟動），他們正在加強將我們前幾年贏得的新項目引入摩洛哥正在建設的新設施中，額外的設施將於明年第一季上線。

Q1 next year, got it.

明年第一季度，明白了。

And just if I think back to about a year ago, you are rolling out a new aftermarket initiative, and I'm looking back on it.

如果我回想起大約一年前，你們正在推出一項新的售後市場計劃，我正在回顧它。

Can you talk a bit about the successes and maybe where it's lagging a little bit relative to expectations going in?

您能否談談所取得的成功以及與預期相比有些落後的地方？

Sure.

當然。

No problem.

沒問題。

We did change leadership of the aftermarket business in Q3 last year and kind of reassess the effectiveness of the prior strategy, especially on the e-commerce side, what we have found is of e-commerce.

去年第三季我們確實改變了售後業務的領導地位，並重新評估了先前策略的有效性，特別是在電子商務方面，我們發現是電子商務。

You have to have a lot of a discipline around your production planning and your inventory strategy and how you're going to market and what you're focusing on and we believe that there's probably more work that could have been done there so that the new leadership that came in actually, we participated in the heavy duty aftermarket week in January, and we have a number of a pretty large number of field sales reps that we met with that will represent our product with various dealers, retail outlets in various regions of the country.

您必須圍繞生產計劃和庫存策略以及如何營銷以及您關注的內容制定大量紀律，我們相信可能還有更多工作可以完成，以便新的事實上，我們參加了一月份的重型售後週，我們會見了很多現場銷售代表，他們將在各地區的各個經銷商、零售店代表我們的產品。國家。

And we recognize from that interaction, we needed to do a better job of getting our name and brand out there.

從這次互動中我們認識到，我們需要更好地宣傳我們的名字和品牌。

And I think the aftermarket truck parts.com probably mid to late this year may have a lot more traction based on the works that the work that our field reps are doing out in the field with our brand improvement and brand awareness.

我認為，基於我們的現場代表在現場所做的工作以及我們的品牌改進和品牌知名度，售後卡車零件網站可能會在今年中後期獲得更多的關注。

So I think going forward, I expect going forward, we'll see better traction sequentially in our aftermarket business sales opportunities.

因此，我認為，展望未來，我預計，我們將在售後市場業務銷售機會中看到更好的吸引力。

That's great to hear.

聽到這個消息我很高興。

And I guess one last question, then I'll get back into queue on clearly rightsize the industrial automation business.

我想還有最後一個問題，然後我將回到隊列中，明確調整工業自動化業務的規模。

What's kind of updated thoughts on when the revenue profile kind of turns around there now that you've kind of rightsized the business.

既然你已經對業務進行了適當規模調整，那麼當收入狀況發生逆轉時，你有什麼最新的想法呢？

But that's a really good question.

但這是一個非常好的問題。

I've been able to take a really good look at what we've done even before coming into the CEO role the business profile there was primarily more contract manufacturing, lower value add, but we had an opportunity to really gain in inputs and access to the local market.

甚至在擔任執行長之前，我就能夠很好地審視我們所做的事情，業務概況主要是更多的合約製造，較低的附加價值，但我們有機會真正獲得投入和獲取機會到當地市場。

And with the takeoff of warehouse automation.

隨著倉庫自動化的起飛。

That's where the business really popped up and has that tailed off it kind of came back to the legacy contract manufacturing box builds and the leadership in that business intentionally has been focusing on a more highly engineered solution in the market and various customers in various different configurations.

這就是該業務真正興起的地方，但它的尾聲又回到了傳統的合約製造整機構建，該業務的領導層有意專注於市場上更高設計的解決方案以及各種不同配置的各種客戶。 。

So we're somewhat at the inflection point of where this business could potentially go based on these new products.

因此，我們正處於基於這些新產品的業務可能走向的轉折點。

We do have favorable customer feedback, but there's going to be a runway to ramp back up to more substantial revenue numbers and early indications are by mid to late this year.

我們確實得到了良好的客戶回饋，但將會有一條跑道可以恢復到更可觀的收入數字，並且早期跡象將在今年中後期出現。

We should start to see more of a bounce-back in that business based on orders we have and in customer insights, we are actually going to be participating in the Moto X show in mid-March, demonstrating one of our new innovative products in that show to get feedback and determine how we need to potentially scale that, that new product and innovation.

根據我們現有的訂單和客戶洞察，我們應該開始看到該業務出現更多反彈，我們實際上將參加 3 月中旬的 Moto X 展會，展示我們的一款新創新產品展示以獲得反饋並確定我們需要如何擴展新產品和創新。

So that's pretty much an update on that business.

這基本上就是該業務的更新。

It's at an inflection point and trying to pivot to more value add.

它正處於一個拐點，並試圖轉向更多的附加價值。

That's also good to hear.

這也很高興聽到。

Thanks, guys.

多謝你們。

I'll get back into queue.

我會回到隊列中。

Thanks, John.

謝謝，約翰。

Next question will be from Gary Prestopino of Barrington.

下一個問題將由巴靈頓的加里·普雷斯托皮諾提出。

Please go ahead.

請繼續。

Good morning all and welcome, James.

大家早安，歡迎，詹姆斯。

A couple of questions here.

這裡有幾個問題。

First of all, James, with you coming onboard, I mean, is the company had a target of revenue of $1.5 billion, 9% adjusted EBITDA margin by 2027.

首先，詹姆斯，隨著你的加入，我的意思是，公司的目標是到 2027 年收入達到 15 億美元，調整後 EBITDA 利潤率達到 9%。

Is that something that you want to stick to here?

這是你想堅持的事情嗎？

Or can we throw that that out with baby out with the bathwater?

或者我們可以把它和嬰兒一起倒掉嗎？

If that's a good question, I would say we're throwing the baby out with the bathwater, but I do think we have an opportunity right now to look at the profile more specifically through market segmentation, customer and product segmentation and have a more intentional profile management as we look at future business.

如果這是一個好問題，我會說我們正在把嬰兒和洗澡水一起倒掉，但我確實認為我們現在有機會透過市場細分、客戶和產品細分更具體地了解概況，並有更有意的了解。當我們展望未來業務時，進行檔案管理。

And we're still assessing the outcome what that profile might look like and where it could potentially go to ensure that we have the appropriate margin accretion algorithm in front of us.

我們仍在評估該配置文件的結果以及它可能的走向，以確保我們面前有適當的利潤成長演算法。

But we're really focused on executing our annual guidance expectations and continuing to book new business.

但我們真正專注於執行我們的年度指導預期並繼續預訂新業務。

So with these two things, we'll have a better chance, I think, shape what this looks like longer term, and we're still defining how that's going to be staged out.

因此，有了這兩件事，我認為我們將有更好的機會來塑造長期的樣子，而且我們仍在定義如何分階段進行。

So at this point, we're not really discussing the long-term targets.

因此，目前我們並沒有真正討論長期目標。

We're not throwing the baby out with the bathwater, but I do think there's work that needs to be done on a on a more disciplined approach to shape the profile of that revenue stream.

我們不會把嬰兒和洗澡水一起倒掉，但我確實認為需要採取更嚴格的方法來塑造收入流的形象。

Okay.

好的。

And that's fine.

那很好。

I just wanted to get that out there because that also those targets have been out there and we don't want to obviously repeat them if they're they're not something you want to adhere to.

我只是想把它說出來，因為這些目標也已經存在，如果你不想遵守的話，我們不想明顯重複它們。

Well.

出色地。

Okay.

好的。

Let me just I guess backtrack a little bit.

讓我稍微回溯一下。

We did state on a prior question that we expect to book the [$100 million] or more new business wins a year.

我們確實在先前的問題上聲明過，我們預計每年將贏得 [1 億美元] 或更多的新業務。

So that is another data point that you can use in determining where we're going longer term because we're not backing off of throwing the baby out with the bathwater, we're sticking to that.

所以這是另一個數據點，你可以用它來確定我們的長期發展方向，因為我們不會放棄把嬰兒和洗澡水一起倒掉的做法，我們會堅持這一點。

Okay.

好的。

So in terms of the closing of the facility in a higher cost reduction, organizational costs.

因此，就關閉設施而言，可以降低更高的成本、組織成本。

Can you slap a number on what kind of expense capture you are looking to get from these actions in 2024?

您能否給出一個數字，說明您希望在 2024 年從這些行動中獲得什麼樣的費用？

So Gary, let me answer that question.

加里，讓我來回答這個問題。

So you can see that about this corner, we took a charge of about $0.05 per share to roughly about $3 million as not all the charges that are related to the actions.

所以你可以看到，關於這個角落，我們收取了每股約 0.05 美元到大約 300 萬美元的費用，因為並非所有費用都與這些行動相關。

So some of the action will continue into Q1 as well.

因此，一些行動也將持續到第一季。

We normally look for about a less than two years payback in our spending on rightsizing and improving the operations.

我們通常希望在調整規模和改善營運方面的支出能夠在兩年內獲得回報。

So we can see there we will see a multimillion dollars of benefit based on the charge that we take, but that's also a role into our annually, the cost reduction that we do.

因此，我們可以看到，根據我們收取的費用，我們將看到數百萬美元的收益，但這也是我們每年降低成本的一個作用。

So we will continue to use those actions to expand our margins as well as offsetting the inflation that we have.

因此，我們將繼續利用這些行動來擴大我們的利潤並抵消我們的通貨膨脹。

You'll see increases.

你會看到增加。

Okay.

好的。

And then just just something just well, I got two more questions, but with all of the electrical systems business, a nice percentage of that was going to on electrified vehicles.

然後只是很好，我還有兩個問題，但對於所有電氣系統業務來說，其中很大一部分涉及電動車。

Is that correct.

那是對的嗎。

Actually our largest segment in that business is con ag, construction, agriculture and some of the key industrial customers.

實際上，我們在該業務中最大的部分是農業、建築、農業和一些主要工業客戶。

The EV portion of that revenue stream is relatively small and okay, we're focused we're focused on some of those customers and our growth and business wins.

該收入流中的電動車部分相對較小，但我們專注於其中一些客戶以及我們的成長和業務勝利。

But as you know, based on recent publications, some of the customers even the non new OEMs, some of the legacy OEMs that are going to electrification have somewhat backed off of the volume estimates as well as the years of introduction.

但如您所知，根據最近的出版物，一些客戶甚至是非新的原始設備製造商、一些即將實現電氣化的傳統原始設備製造商都在一定程度上放棄了銷量估計以及推出年份。

So because we're more intentional about how we shape the profile of our new business was electrical.

因為我們更注重如何塑造我們新業務的電氣形象。

We didn't have an overreliance on that to hit our longer-term growth objectives.

我們並沒有過度依賴這一點來實現我們的長期成長目標。

Okay.

好的。

That's good.

那挺好的。

That's what I was trying to get at here.

這就是我在這裡想要達到的目的。

Okay.

好的。

And then Gene's question, another question for you.

然後是吉恩的問題，這是給你的另一個問題。

I've got a great background here in terms of where you've been in companies, you work for them where where do you see your strengths and how they match up with the needs of some CVG.?

我對你在哪些公司工作過、為他們工作過、你在哪裡看到你的優勢以及它們如何與某些 CVG 的需求相匹配方面有很好的背景。

I guess I guess what I'm trying to get at here is that in your prior roles at Stanley Black & Decker and all and that were you more operationally oriented?

我想我想在這裡想說的是，在您之前在史丹利百得等公司擔任的職務中，您是否更注重營運？

Yes.

是的。

So that's a great question.

這是一個很好的問題。

And I'm trying to answer to the best of my ability.

我正在盡力回答。

So if I work backwards, the seven years, I was at Stanley Black & Decker was focused a lot on transformation of both from a supply chain business model or efficiency, engineering, go-to-market, customer relations management.

因此，如果我倒退一下，我在史丹利百得的七年時間裡，專注於供應鏈業務模式或效率、工程、上市、客戶關係管理的轉型。

So truly general management during my time at key was really focused on operational transformation at the platform level.

因此，在我任職期間，真正的綜合管理真正關注的是平台層面的營運轉型。

And that was during the post oh eight, oh nine downturn.

那是在「八點九點」之後的低迷時期。

So there was a lot of hands-on heavy lifting there.

因此，那裡有很多需要親自動手的繁重工作。

And I see that coming into this role and after observing some of the needs of the business from a Board seat.

我在擔任這個角色並從董事會席位觀察了一些業務需求之後看到了這一點。

I felt very comfortable that I can understand what exactly needs to be done, where we needed additional capability where we needed more capacity and also improved processes and tools to help us run our operations.

我感到非常放心，我可以理解到底需要做什麼，我們需要額外的能力，我們需要更多的能力，以及改進的流程和工具來幫助我們運作我們的營運。

So as many of you know, it's a journey and operational transformation.

正如你們許多人所知，這是一個旅程和營運轉型。

And I would say we're probably in the early phases where we're gaining traction.

我想說，我們可能正處於獲得吸引力的早期階段。

So the difference in my approach may be that on focused on culture, change management as well as sustainable process into improvement as compared to brute force and just trying to muscle things through the sustainability of improvements is very important to me.

因此，我的方法的不同之處可能在於，與蠻力相比，專注於文化、變革管理以及可持續的改進過程，並且試圖透過改進的可持續性來推動事情對我來說非常重要。

So I believe that's where I had a lot of value coming into the business and I would also add on the customer relations management.

所以我相信這就是我在業務上具有很大價值的地方，我也會增加客戶關係管理。

I think that we have some very strong and exemplar customers in our portfolio.

我認為我們的產品組合中有一些非常強大且堪稱典範的客戶。

There's opportunities to manage them in a different way.

有機會以不同的方式管理它們。

So it's its long term strategic relationships, and we keep the comprehensive picture of our relationship in front of us, and it's a win-win, mutually beneficial.

因此，這是長期的戰略關係，我們對兩國關係的全局有一個全面的了解，這是雙贏、互利的。

Our relationship balance that I'm aspiring to achieve with our with our large customers and our new customers as well.

我渴望與我們的大客戶和新客戶實現我們的關係平衡。

All of our customers are important, but there's some that really sway your business one way or the other and we just need to make sure we're very intentional about how we manage.

我們所有的客戶都很重要，但有些客戶確實會以某種方式影響您的業務，我們只需要確保我們非常有意識地管理我們的管理方式。

Okay.

好的。

Thank you very much, and I wish you well, Vacon.

非常感謝你，祝你一切順利，Vacon。

Thank you.

謝謝。

Thanks, Gary.

謝謝，加里。

Next question will be from Guillermo Covaro at Gabelli Funds.

下一個問題將由 Gabelli Funds 的 Guillermo Covaro 提出。

Please go ahead.

請繼續。

Good morning.

早安.

Thanks for taking the question.

感謝您提出問題。

Good morning.

早安.

Thanks, Guillermo.

謝謝，吉列爾莫。

Like Spiro on.

就像斯皮羅一樣。

So we've heard a bit on margins being up from both pricing as well as contribution from the US business.

因此，我們聽說定價和美國業務的貢獻都提高了利潤率。

I'm curious whether part of the story here is also being more selective in your contracts.

我很好奇這裡的故事是否也包括在合約中更具選擇性。

So in other words, have you had to walk away from any significant customers based solely on margin profile.

換句話說，您是否不得不僅根據利潤狀況放棄任何重要客戶？

You mentioned not disclosing specific contracts, but if you could just provide some color on whether this was part of the margin story over the past year or so that that would be helpful.

您提到不披露具體合同，但如果您能提供一些資訊來說明這是否是過去一年的保證金故事的一部分，那麼這將會有所幫助。

Thanks.

謝謝。

Yes.

是的。

So if you remember, we did talk about that in the past that there is one customer that we didn't like the terms of the contract and we walked away from a seating standpoint.

因此，如果您還記得的話，我們過去確實談過，有一位客戶我們不喜歡合約條款，因此我們放棄了座位立場。

So there was and that actually this fiscal year.

因此，本財年確實如此。

So that helps to streamline our operation and as well as get rid of some of the terms that we didn't like.

因此，這有助於簡化我們的操作，並刪除一些我們不喜歡的術語。

So that's part of the margin reduction.

這是利潤減少的一部分。

Got it.

知道了。

Thank you.

謝謝。

Your next question will be from Steven Martin of Slater Capital.

您的下一個問題將來自斯萊特資本的史蒂文·馬丁。

Please go ahead.

請繼續。

Hi, Uhm-hmm.

嗨，嗯嗯。

Jim, you guys.

吉姆，你們。

James, you're new, but you've been on the Board.

詹姆斯，你是新人，但你一直是董事會成員。

So as a shareholder who's been around longer than any of the senior management.

因此，作為一名比任何高階管理層任職時間都長的股東。

I'd like to share a couple of thoughts.

我想分享一些想法。

And I think Harold sold us a bill of goods over the last three or four years if I look back at his comments about recutting, the truck contracts and blaming things on increased costs that couldn't pass through.

如果我回顧一下哈羅德關於重新切割、卡車合約以及將無法轉嫁的成本增加歸咎於他的評論，我認為哈羅德在過去三四年裡向我們出售了一份貨物清單。

And now here we are four years later, you recut the contracts last year, April first, you re-cut the last supposedly the last contract freight costs are down.

現在四年過去了，你去年重新削減了合同，四月一日，你重新削減了最後一份合同，據說最後一份合同運費下降了。

And by the way, I'll point out that if you look at your fourth quarter press release last year, the same time last year AC, you said ACT. was projecting 305 and it ended up being 345.

順便說一句，我要指出的是，如果你看去年第四季的新聞稿，去年同一時間 AC，你說的是 ACT。原本預計是305，結果是345。

So every quarter this year, ACT got better than you guys anticipated yet your business didn't and you underwhelmed when it comes to last year, you made a big deal about a $30 million cost savings program.

因此，今年每個季度，ACT 的表現都比你們預期的要好，但你們的業務卻沒有，而且去年你們大肆宣傳 3000 萬美元的成本節約計劃，你們卻表現平平。

We don't see it.

我們沒有看到它。

You know, there was a big deal when you talked about, oh, Harold made a big deal about aftermarket and all the money that got spent reorganizing plants, building inventory, hiring new people.

你知道，當你談到哈羅德在售後市場以及重組工廠、建立庫存、僱用新員工所花費的所有資金時，這是一件大事。

We don't see it when we talk about the electrical business, you just pointed out, they made a big deal out of all the easy wins we had.

當我們談論電力業務時，我們沒有看到這一點，您剛才指出，他們從我們輕鬆取得的所有勝利中賺得盆滿缽滿。

And now you're saying EV is not really a big part of it.

現在你說電動車並不是其中的重要組成部分。

I won't even go into the acquisition, which has been an unmitigated disaster.

我甚至不會討論這次收購，因為這是一場徹頭徹尾的災難。

So while you warrant the CYO., you are on the board and I just want to share with you the level of frustration of your long-term shareholders who have watched the stock go nowhere for five years.

因此，雖然你是 CYO，但你是董事會成員，我只想與你分享你的長期股東的沮喪程度，他們看著股票五年來毫無進展。

Steve, thanks for your feedback and your observations are our very well grounded.

史蒂夫，感謝您的回饋，您的觀察是我們很有根據的。

So I'm going to let Andy comment on a few things, and then I'll come on the back of Andy's comments.

因此，我將讓安迪評論一些事情，然後我將在安迪的評論之後進行評論。

Yes.

是的。

So our bus depot, thank you for the feedback.

我們的巴士站，謝謝您的回饋。

So we actually look at the business.

所以我們其實是在關注業務。

As you said, there's some areas that we believe is really doing well.

正如您所說，我們認為有些領域確實做得很好。

Some areas that we afforded you saw a bit a like to your point, and James already mentioned the aftermarket and e-commerce.

我們為您提供的一些領域與您的觀點有點相似，詹姆斯已經提到了售後市場和電子商務。

And I think we mentioned that it was a experiment and trial for us that we learned from it.

我想我們提到這對我們來說是一次實驗和嘗試，我們從中學到了教訓。

And that initiative didn't pan out as strong as we thought.

但這舉措並沒有我們想像的那麼成功。

So we have made some changes to leadership and we will be preparing and are seeing other ways to grow the business as we also pointed out.

因此，我們對領導層進行了一些改變，我們將做好準備，並正在尋找其他方式來發展業務，正如我們也指出的那樣。

So we have some our wins in the electrical business that I mentioned at the previous CEO have also mentioned Adesto's other wins that we saw over the past couple of years on what James mentioned about easy is not a big part of our business is if you look at today, our revenues profile where you have not been are a big part of our revenues based on, but would that be and it would depend on some of these customer, whether they went up to the expected volume and when would they went up?

因此，我們在電氣業務方面取得了一些勝利，我在前首席執行官中提到過，還提到了我們在過去幾年中看到的Adesto 的其他勝利，詹姆斯提到的“簡單”並不是我們業務的重要組成部分，如果你看看的話今天，我們的收入狀況（您沒有去過）是我們收入的很大一部分，但這會是嗎？這將取決於其中一些客戶，他們是否達到預期數量以及何時會增加？

So there's something in the backlog in the pipeline in the future you have to see.

因此，您必須看到未來管道中積壓的一些東西。

But as James mentioned, we are not going to count on that one basket, right?

但正如詹姆斯所說，我們不會指望那個籃子，對吧？

So we continue to diversify our revenues.

因此，我們持續實現收入多元化。

So our in terms of productivities we did follow through of our cost reduction initiatives.

因此，就生產力而言，我們確實遵循了降低成本的措施。

This year, we have met our own internal target of other cost reduction, but at the same time, we mentioned that in the past, some of the gross cost reduction will be used to offset some headwinds that we have.

今年，我們已經實現了內部其他成本削減的目標，但同時我們提到，過去的總成本削減的一部分將用於抵消我們遇到的一些不利因素。

Inflation still continue, particularly in labor and others.

通貨膨脹仍在繼續，特別是在勞動力和其他方面。

So yes, we would continue to like to see margin expansion, as you described.

所以，是的，正如您所描述的那樣，我們仍然希望看到利潤率擴大。

And I think we are on the same boat and as James mentioned.

我認為我們在同一條船上，正如詹姆斯所提到的。

So this will be the again, our focus front and center the vehicle solution business, optimizing the margin go up will be our top priority in addition to our electrical system growth trends or feedback would be appreciated.

因此，這將是我們再次關注車輛解決方案業務的前沿和中心，除了我們的電氣系統成長趨勢或回饋之外，優化利潤成長將是我們的首要任務。

All right.

好的。

Thank you

謝謝

--

--

Steve, thanks, again, really appreciate your comments.

史蒂夫，再次感謝，非常感謝您的評論。

And I see the business in similar fashion.

我也以類似的方式看待這個行業。

There are operational excellence, things we can do across our functions to improve the stickiness of our cost reductions and we also have a lot more structure and process rigor we can put in place to ensure that the cost reductions are sustainable and not necessarily one-time.

我們可以透過卓越營運來跨職能部門開展工作，以提高成本削減的黏性，而且我們還可以實施更多的結構和流程嚴格性，以確保成本削減是可持續的，而不是一次性的。 。

So I see that as an opportunity for margin expansion, both on the material, the operations side as well as some of our business processes and customer relationships as it relates to debits, delivery quality, things like that, that don't excite our customers and that is my priority.

因此，我認為這是一個擴大利潤的機會，無論是在材料、營運方面，還是在我們的一些業務流程和客戶關係方面，因為它與借方、交付品質等相關，但這些並不能激發我們的客戶這是我的首要任務。

So without our customers and without their confidence, we can't continue to grow this top line.

因此，如果沒有我們的客戶和他們的信任，我們就無法繼續成長這項收入。

So that is a very top priority.

所以這是一個非常重要的優先事項。

In my mind, you have to keep in mind top line with no profitability.

在我看來，你必須牢記沒有獲利能力的頂線。

Doesn't do any of us any good.

對我們任何人都沒有好處。

So I totally agree with you, and that's why we are going to focus on the process rigor and operational excellence across all of our functions, not just in the manufacturing.

所以我完全同意你的觀點，這就是為什麼我們要關注我們所有職能部門（而不僅僅是製造部門）的流程嚴謹性和卓越營運。

I hope you succeed.

我希望你成功。

Thanks you, Steve.

謝謝你，史蒂夫。

Thanks, Steve.

謝謝，史蒂夫。

Once again, ladies and gentlemen, if you do have any questions, please press star followed by one.

女士們先生們，如果您有任何疑問，請再次按星號，然後再按一個。

Next is a follow up from John at Sidoti.

接下來是 Sidoti 的 John 的後續報導。

Please go ahead.

請繼續。

Yes, just in your comments about on diversifying the end markets in order to foster growth.

是的，就在您關於終端市場多元化以促進成長的評論中。

Can you just talk a bit little bit about how you expect to do that you need to add sales personnel and what's the pathway to entering new end markets.

您能否簡單談談您希望如何增加銷售人員以及進入新終端市場的途徑是什麼。

And there are a couple of different ways, John of one is to bring sales and engineering people into the organization.

有幾種不同的方法，其中一種是將銷售和工程人員引入組織。

Two that have experience and contacts and credibility in those segments.

兩個在這些領域擁有經驗、人脈和信譽的人。

There are also opportunities for what I would say is cross-selling or white space.

我所說的交叉銷售或空白也有機會。

We have a major customer in one of our businesses, but we're not penetrating as with all of our product lines, and that's probably a bigger opportunity than doing it organically was hiring in.

我們的一項業務有一個主要客戶，但我們並沒有像我們所有的產品線那樣滲透，這可能是比有機招聘更大的機會。

On the hiring side, we look at this from a talent management perspective and making sure we have the right people with the right skill sets, some of what we do in restructuring as part of that rotation to make sure we have the right people with the right skill sets the right experience.

在招募方面，我們從人才管理的角度來看待這個問題，並確保我們擁有擁有合適技能的合適人才，作為輪換的一部分，我們在重組中做了一些工作，以確保我們擁有擁有合適技能的合適人才。正確的技能帶來正確的經驗。

So we have seen traction over the past year in some of our sales funnel looking into this year, what we're quoting in these various segments that are new.

因此，我們在過去的一年中看到了一些銷售漏斗的吸引力，展望今年，我們在這些不同的新細分市場中引用了哪些內容。

We also have a value proposition where we're successful in one segment with one OEM that gives us a stronger right to play and right to win in that particular segment.

我們還有一個價值主張，即我們在一個細分市場中與一家 OEM 取得成功，這使我們在該特定細分市場中擁有更強的參與權和獲勝權。

So we are in flight as far as building momentum outside of Class A. truck segments as well as continuing to expand outside construction and agriculture as well.

因此，我們正在努力在 A 級卡車領域之外建立動力，並繼續向建築和農業領域之外擴張。

Okay.

好的。

Got it.

知道了。

And just some updated thoughts on on two items.

只是對兩個項目的一些最新想法。

I guess one on debt repayment in the year ahead and two, what's the CapEx budget, especially in light of the continued ramping of the new facilities and the startup of the third?

我想一是關於未來一年的債務償還，二是資本支出預算是多少，特別是考慮到新設施的持續增加和第三設施的啟動？

Yes.

是的。

So on from a CapEx standpoint, we expect $25 million to $30 million in 2024.

因此，從資本支出的角度來看，我們預計 2024 年將達到 2,500 萬至 3,000 萬美元。

And you can see long term, we will normally target a range between 2% to 3% of sales.

從長遠來看，我們的目標通常是銷售額的 2% 到 3%。

That's kind of been our trend and we expect that going forward on when it comes to debt paydown on.

這就是我們的趨勢，我們預計在償還債務方面會繼續下去。

So we will minimize any paydown of somewhere around $15 million next year as part of our amortization.

因此，作為攤銷的一部分，我們明年將盡量減少約 1500 萬美元的付款。

And in the past, we talk about that.

在過去，我們談論過這個。

We'll continue to do that.

我們將繼續這樣做。

And when we see excess cash spend, our first priority will continue to be funding our organic growth and for the CapEx and other working capital, et cetera.

當我們看到現金支出過剩時，我們的首要任務將繼續為我們的有機成長以及資本支出和其他營運資金等提供資金。

And then we'll have some options as excess cash becomes available for further debt paydown on potential M&A at that point, I will share more as we get into closer into the year and we'll share more about our cash flow expectations.

然後，隨著多餘的現金可用於進一步償還潛在併購的債務，我們將有一些選擇，隨著今年的臨近，我將分享更多關於我們的現金流預期的資訊。

Okay.

好的。

Fair enough.

很公平。

Thank you, Andy.

謝謝你，安迪。

Thank you, James.

謝謝你，詹姆斯。

Thank you.

謝謝。

Thank you.

謝謝。

Your next question is from Steve Emerson of Emerson Investment Group.

您的下一個問題來自艾默生投資集團的史蒂夫艾默生。

Please go ahead.

請繼續。

Thank you.

謝謝。

Gentlemen.

先生們。

I noticed that admin, what from around $22 million to call it, $34 million, up 50%.

我注意到管理費從 2,200 萬美元左右變成了 3,400 萬美元，成長了 50%。

How much of this is a cash expense increase.

其中有多少是現金支出增加。

And for this call, I would say on you could call it maybe 60 to two thirds of it is cash on.

對於這個電話，我想說，你可以打電話給它，也許 60 到三分之二是現金。

So as I explained in the cost in the past of this year, there is a bit higher SG&A increase because if you compare to last year, it was a year that we literally didn't pay our incentive come from a bonus standpoint.

因此，正如我在今年過去的成本中所解釋的那樣，SG&A 增加了一點，因為如果與去年相比，從獎金的角度來看，這一年我們實際上沒有支付我們的激勵。

So that's a big part of the SG&A increase this year.

因此，這是今年 SG&A 成長的很大一部分。

And that is actually why now has not been cash impact yet because we have impaired the actual bonus.

這實際上就是為什麼現在還沒有對現金產生影響，因為我們已經削弱了實際獎金。

So a big part of that is due to that the wedge will be mostly cash.

所以很大一部分原因是楔子主要是現金。

In view of the downbeat for cash this year, I find an incentive compensation equal to call it, 40% bump in G&A, highly inappropriate.

鑑於今年現金的低迷，我發現所謂的激勵性薪酬，即 G&A 增加 40%，是非常不合適的。

And that was, I think, the refarming back to a 2023 versus the trend in 2022.

我認為，這就是重新耕種回到 2023 年，而不是 2022 年的趨勢。

I do hear you.

我確實聽到了。

Thank you.

謝謝。

Your next question will be from Andrew Wittmann of Baird.

您的下一個問題將來自貝爾德 (Baird) 的安德魯·維特曼 (Andrew Wittmann)。

Please go ahead.

請繼續。

Yes, hi, gentlemen.

是的，嗨，先生們。

One question I have is if I look at the appendix of the chart, you sent out the slides you sent out and it breaks down the profitability from an operating income standpoint by business unit.

我的一個問題是，如果我查看圖表的附錄，您發送了您發送的幻燈片，它會從營業收入的角度按業務部門細分盈利能力。

And as I look at that and I have some familiarity with the vehicle systems business, and I believe that's still a just-in-time business.

當我看到這一點時，我對車輛系統業務有了一定的了解，我相信這仍然是一個及時的業務。

And you know, it's highly there's a lot of work that goes into those components is 3.1%, which this is showing some as of the end of the year.

你知道，這些元件需要做很多工作，佔 3.1%，這是截至今年年底的一些數據。

It just doesn't seem like the right return for a business that requires the infrastructure that that business requires and certainly investment in capital and working capital.

對於需要基礎設施以及資本和營運資本投資的企業來說，這似乎不是正確的回報。

So I'm just wondering of your thoughts on.

所以我只是想知道你的想法。

Yes.

是的。

So on the clearly, if you just look at the return on sales in Q4 alone is not what we were expecting a longer term.

因此，很明顯，如果你只看第四季的銷售回報率，這並不是我們對長期的預期。

Look, there's two reasons.

你看，有兩個原因。

One, Q4 historically being a fairly small revenue quarter.

第一，第四季歷史上是一個相當小的營收季度。

And as you mentioned, with the infrastructure, there is a certain degree of fixed cost in the business.

正如您所提到的，有了基礎設施，業務就存在一定程度的固定成本。

Small revenues quarter always impacting our West and then also as James mentioned in the call earlier, we were impacted by a customer strike during the quarter, so it impacted almost 10% of the revenues of that segment in the quarter.

小收入季度總是會影響我們的西部地區，正如 James 在之前的電話會議中提到的那樣，我們在本季度受到了客戶罷工的影響，因此影響了本季度該部門收入的近 10%。

So and that is obviously difficult for us to adjust fixed costs during the quarter to accommodate for that.

因此，我們顯然很難在本季調整固定成本來適應這種情況。

So that also impacted the margin of that business.

這也影響了該業務的利潤率。

I think longer term on your point is valid.

我認為從長遠來看你的觀點是有效的。

So have a mid to high single digit return on that business from a margin standpoint will be will be probably a more appropriate and a low single digit margin?

那麼，從利潤率的角度來看，該業務的中高個位數回報可能會更合適，而低個位數利潤率可能會更合適？

Yes.

是的。

I mean, I guess I just follow up by saying I don't know if we ever analyze it from the customer standpoint, but I know for our big customers.

我的意思是，我想我只是接著說，我不知道我們是否從客戶的角度進行分析，但我知道我們的大客戶。

We save them a lot of money by being just in time, right?

我們及時趕工為他們省了很多錢，對嗎？

When they need us low inventory.

當他們需要我們的低庫存時。

And I just continue to say there could be increasing return on even the 7.3 isn't as strong relative to some of your other businesses for the year.

我只是繼續說，即使 7.3 相對於你們今年的其他一些業務來說並不那麼強勁，回報也可能會增加。

But point taken, thank you for taking my questions.

但重點是，謝謝你回答我的問題。

Thank you, for you feedback.

謝謝您的回饋。

Thank you.

謝謝。

And at this time, we have no other questions registered.

目前，我們沒有登記任何其他問題。

Please proceed.

請繼續。

Thank you all for joining today's call.

感謝大家參加今天的電話會議。

While 2023 was a strong year for the Company, I'm even more excited for the opportunities that lie ahead for CVG.

雖然 2023 年對公司來說是強勁的一年，但我對 CVG 未來的機會更加興奮。

We remain encouraged by our business outlook, and we look forward to continuing to execute our long-term growth strategy.

我們對我們的業務前景仍然感到鼓舞，並期待繼續執行我們的長期成長策略。

Have a great day.

祝你有美好的一天。

Thank you, sir.

謝謝你，先生。

Ladies and gentlemen, this does indeed conclude your conference call for today.

女士們、先生們，今天的電話會議到此結束。

Once again, thank you for attending and at this time, we do ask that you please disconnect.

再次感謝您的出席，此時我們懇請您斷開連結。

Your line and.

你的線和。