Daktronics Inc (DAKT) 2024 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Daktronics Fiscal Year 2024 First Quarter Earnings Results Conference Call. As a reminder, this conference is being recorded today, Wednesday, September 6, and is available on the company's website at www.daktronics.com. (Operator Instructions)

女士們、先生們，美好的一天，歡迎參加達科 2024 財年第一季獲利結果電話會議。謹此提醒，本次會議將於今天（9 月 6 日星期三）錄製，並可在公司網站 www.daktronics.com 上查看。 （操作員說明）

I would now like to turn the conference over to Ms. Sheila Anderson, Chief Financial Officer for Daktronics, for some introductory remarks. Please go ahead, Sheila.

現在我想請達科公司財務長 Sheila Anderson 女士做一些介紹性發言。請繼續，希拉。

Thank you, Liz. Good morning, everyone. Thank you for participating in our First Quarter Earnings Conference Call.

謝謝你，莉茲。大家，早安。感謝您參加我們的第一季財報電話會議。

I would like to review our disclosure cautioning investors and participants that in addition to statements of historical facts, we will be discussing forward-looking statements reflecting our expectations and plans about our future financial performance and future business opportunities. These forward-looking statements reflect the company's expectations or beliefs concerning future events.

我想回顧一下我們的揭露，提醒投資者和參與者，除了歷史事實的陳述之外，我們還將討論反映我們對未來財務表現和未來商業機會的預期和計劃的前瞻性陳述。這些前瞻性陳述反映了公司對未來事件的期望或信念。

All forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from our expectations. Such risks include, but are not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introductions of new products and technologies, availability of raw materials, components and shipping services and other important factors.

所有前瞻性陳述均涉及風險和不確定性，可能導致實際結果與我們的預期有重大差異。這些風險包括但不限於經濟和市場條件的變化、成長管理、未來合約和訂單的時間表和規模、利潤波動、新產品和技術的推出、原材料、零件和運輸的可用性服務和其他重要因素。

These identified factors could cause actual results to differ materially from those discussed on this call in our company's first quarter 2024 earnings release and its most recent annual report on Form 10-K.

這些已確定的因素可能導致實際結果與我們公司 2024 年第一季財報發布和最新 10-K 表格年度報告中討論的結果有重大差異。

Our first quarter 2024 earnings release contain certain non-GAAP financial measures and was furnished to the Securities and Exchange Commission on Form 8-K this morning. These documents are available on the Investors section at Daktronics website at www.daktronics.com.

我們的 2024 年第一季財報包含某些非 GAAP 財務指標，並已於今天上午以 8-K 表格形式提交給美國證券交易委員會。這些文件可在 Daktronics 網站 www.daktronics.com 的投資者部分取得。

I'll turn the call over to our CEO, Reece Kurtenbach.

我會將電話轉給我們的執行長 Reece Kurtenbach。

Good morning. Thanks, Sheila. I'd like to thank all of you for joining us today. Our record sales and operating income for the quarter are a result of strong execution across all our business areas. We continue to benefit from our past decisive and deliberate actions to improve our customers' experience while increasing our profitability and working capital levels. Our performance is also a testimony to the resiliency and strength of our teams within Daktronics as well as our strategy of diversified markets and innovation across technology platforms.

早安.謝謝，希拉。我要感謝大家今天加入我們。我們本季創紀錄的銷售額和營業收入得益於我們所有業務領域的強勁執行力。我們繼續受益於過去果斷而深思熟慮的行動，以改善客戶體驗，同時提高我們的獲利能力和營運資本水準。我們的表現也證明了達科團隊的彈性和實力，以及我們的多元化市場和跨技術平台創新的策略。

Our teams strategically utilized our capacity to complete the manufacturing and installation for the start of fall football season for our High School Park and Recreation and Live Events customers.

我們的團隊策略性地利用我們的能力，為我們的高中公園、娛樂和現場活動客戶完成秋季足球賽季開始的製造和安裝。

Numerous high schools and colleges turned on Daktronics displays this football season. Several professional sports stadiums also trusted Daktronics value and have new installations, including the Green Bay Packers, the Denver Broncos and the New England Patriots.

本賽季許多高中和大學都啟用了 Daktronics 顯示器。一些專業體育場館也信任 Daktronics 的價值並安裝了新設施，其中包括綠灣包裝工隊、丹佛野馬隊和新英格蘭愛國者隊。

With our sales performance, we also were able to bring lead times back down towards pre-pandemic levels and generate profits.

憑藉我們的銷售業績，我們也能夠將交貨時間縮短至疫情前的水平並產生利潤。

For additional details on the financial results for the quarter, I'll turn it over to Sheila.

有關本季度財務業績的更多詳細信息，我會將其交給 Sheila。

Thank you, Reece. As Reece mentioned, we had a record start for orders and operating income in the quarter. We had sales of $232.5 million for the first quarter of fiscal 2024. This was an increase of 35.3% compared to $171.9 million for the first quarter of fiscal 2023. Sales growth was driven by fulfilling orders and backlog, especially in the Live Events and High School Park and Rec business areas, as Reece mentioned.

謝謝你，里斯。正如里斯所提到的，我們本季的訂單和營業收入創下了創紀錄的開局。 2024 財年第一季的銷售額為2.325 億美元。與2023 財年第一季的1.719 億美元相比，成長了35.3%。銷售成長是由履行訂單和積壓訂單推動的，特別是在現場活動和高端活動中。正如里斯所提到的，學校公園和休閒商業區。

The increase is attributable to a stable operating environment, increased manufacturing capacity and realization of price increases. What a difference a year makes as in comparison during the first quarter of fiscal 2023 we experienced multiple material supply chain disruptions, labor shortages and a pandemic related shutdown in our facilities in Shanghai, China for a significant portion of that quarter.

這一成長歸因於穩定的經營環境、產能的增加以及價格上漲的實現。與2023 財年第一季相比，這一年的情況有多大的不同，在該季度的大部分時間裡，我們在中國上海的工廠經歷了多次材料供應鏈中斷、勞動力短缺以及與流行病相關的關閉。

Gross profit as a percentage of net sales increased to 30.6% for the first quarter of fiscal 2024 as compared to 15% in the first quarter of fiscal 2023.

2024 財年第一季毛利潤佔淨銷售額的百分比增至 30.6%，而 2023 財年第一季為 15%。

The increase in gross profit percentage is attributable to the record sales volume over our cost structure, strategic pricing actions and fewer supply chain and operational disruptions during this quarter as compared to last year at the same time.

毛利率的成長歸因於我們的成本結構、策略定價行動以及本季供應鏈和營運中斷與去年同期相比創紀錄的銷售量。

Operating expenses for the first quarter were $30.9 million compared to $31.3 million for the first quarter of fiscal 2024. As a percentage of sales, operating expenses for the quarter over prior year quarter declined 13.3% from the 18.2%. Operating income was $40.2 million or 17.3% of sales during the first quarter of fiscal 2024 as compared to last year's loss of $5.5 million. Tax expense for the first quarter was $8.9 million with an effective income tax rate of 31.7%.

第一季的營運費用為 3,090 萬美元，而 2024 財年第一季的營運費用為 3,130 萬美元。以銷售額百分比計算，本季的營運費用比去年同期的 18.2% 下降了 13.3%。 2024 財年第一季營業收入為 4,020 萬美元，佔銷售額的 17.3%，而去年則虧損 550 萬美元。第一季稅費為 890 萬美元，有效所得稅率為 31.7%。

Absent any major tax changes, we expect our full year effective rate to be in the mid-20s before the noncash, nontax impact with fair value accounting of our convertible debt.

在沒有任何重大稅收變化的情況下，我們預計全年實際利率將在可轉換債務的公允價值會計產生非現金、非稅收影響之前在 20 多歲左右。

Our balance sheet reflects the changes in business levels and strategies we pursued in managing our supply chain and growing our capacity to meet customers' commitments, all while managing our liquidity. At the end of fiscal 2024 first quarter, our working capital ratio was 1.9:1.

我們的資產負債表反映了我們在管理供應鏈和提高滿足客戶承諾的能力方面所追求的業務水平和策略的變化，同時管理我們的流動性。截至 2024 財年第一季末，我們的營運資金比率為 1.9:1。

Inventory levels dropped slightly since the end of the year and are expected to approach more normalized levels. The supply chain disruptions continue to ease and order backlog is fulfilled.

庫存水準自年底以來略有下降，預計將接近正常水準。供應鏈中斷繼續緩解，積壓訂單得以履行。

Cash, restricted cash and marketable securities totaled $54.9 million, and we have a face value of debt of $40 million outstanding. There were no drawdowns on our line of credit. As a reminder, we closed on our financing in May 2023 as a result of the comprehensive review of financing alternatives, led by the Board's strategy and financing review committee. This new debt structure provides us the financial resources to serve our customers and build long-term value for our shareholders.

現金、限制性現金和有價證券總計 5,490 萬美元，未償債務面額為 4,000 萬美元。我們的信用額度沒有被提款。謹此提醒，在董事會策略和融資審查委員會的領導下，對融資方案進行了全面審查，我們於 2023 年 5 月結束了融資。這個新的債務結構為我們提供了服務客戶並為股東創造長期價值的財務資源。

The interest expense created by this debt also includes the debt issuance cost of the convertible debt. The convertible debt is recorded at fair value, and we recorded a $7.3 million noncash charge because of the change in the fair value, and that fair value was primarily caused by the increase in our stock price and decline in market interest rates.

該債務產生的利息費用還包括可轉換債券的債務發行成本。可轉換債務以公允價值記錄，由於公允價值的變化，我們記錄了730萬美元的非現金費用，而公允價值主要是由我們的股價上漲和市場利率下降造成的。

Going forward, we will remeasure the fair value of this convertible note until maturity or conversion, which will create this noncash charge below operating income each quarter.

展望未來，我們將重新計量該可轉換票據的公允價值，直到到期或轉換，這將使該非現金費用低於每季的營業收入。

During the first quarter of fiscal 2024, we generated $19.3 million of cash from operations and used $4.5 million for purchases of property and equipment. We continue to focus on optimizing our working capital for investments and for investments into working capital assets.

在 2024 財年第一季度，我們從營運中產生了 1,930 萬美元的現金，並使用 450 萬美元購買財產和設備。我們持續專注於優化投資和營運資本資產投資的營運資本。

Our plans are to spend approximately $19 million for capital assets, primarily in manufacturing and technology areas. We also plan investments in digitization to improve customer and employee experiences, and we'll continue to invest in our affiliates through this year.

我們計劃花費約 1,900 萬美元購買資本資產，主要用於製造和技術領域。我們還計劃投資數位化，以改善客戶和員工體驗，今年我們將繼續投資我們的附屬公司。

Over the long term, we expect to grow revenues and profitably. Our backlog at the end of the first quarter of fiscal 2024 was at $324 million, which provides a nice base of business to fulfill in the coming quarters. And the reduction of backlog reflects the stabilization of our supply chain and our ability to return to more customer anticipated lead times.

從長遠來看，我們預計收入和利潤都會增加。截至 2024 財年第一季末，我們的積壓訂單為 3.24 億美元，這為未來幾季的完成提供了良好的業務基礎。積壓訂單的減少反映了我們供應鏈的穩定性以及我們恢復更多客戶預期交貨時間的能力。

I'll now turn it back over to you, Reece for more comments.

現在，我將把它轉回給你，里斯，以徵求更多意見。

Thanks, Sheila. As we look ahead, we expect growth in the global use of audiovisual communication systems in both traditional and new applications. Industry research predicts the LED market will achieve an estimated 20% compounded annual growth rate over the coming years, depending on the specific end market and geography. We are poised to capitalize on this growth by continuing to do things we do well, including how we engage in a full range of activities to serve our customers by providing high-quality standard display products as well as custom-designed integrated systems, both with ongoing services and support.

謝謝，希拉。展望未來，我們預期全球視聽通訊系統在傳統和新應用中的使用都會成長。產業研究預測，未來幾年 LED 市場預計將實現 20% 的複合年增長率，具體取決於具體的終端市場和地理位置。我們準備好透過繼續做我們擅長的事情來利用這一成長，包括我們如何透過提供高品質的標準顯示產品以及客製化設計的整合系統來進行全方位的活動來服務我們的客戶持續的服務和支援。

We manufacture a complete line of products from small scoreboards and electronic displays to large multimillion-dollar video display systems and the related control and sound systems. We developed capabilities to design, manufacture, install and service, complete integrated systems, and we are recognized as a technical leader in these areas. We generate new leads and serve repeat customers based on our performance, reputation and marketing efforts.

我們生產全系列產品，從小型記分板和電子顯示器到價值數百萬美元的大型視訊顯示系統以及相關的控制和音響系統。我們開發了設計、製造、安裝和服務以及完整整合系統的能力，並且我們被公認為這些領域的技術領導者。我們根據我們的業績、聲譽和行銷努力來創造新的銷售線索並為回頭客提供服務。

As we look ahead to the remainder of the current fiscal year, our attention remains focused on our multiyear journey to capture the market's expected growth and broaden our leading market position by offering best-in-class technologies and services to both our traditional customers as well as new and adjacent markets. We have applied the experience of the preceding two fiscal years to closely monitor the ever-evolving geopolitical and global economic environment and as necessary, quickly adjust our resources and market approaches so that we can maintain profitability and cash generation throughout various cycles.

展望本財年的剩餘時間，我們的注意力仍然集中在我們的多年旅程上，以抓住市場的預期增長，並通過向我們的傳統客戶提供一流的技術和服務來擴大我們的領先市場地位作為新的和鄰近的市場。我們運用前兩個財年的經驗，密切關注不斷變化的地緣政治和全球經濟環境，並根據需要快速調整我們的資源和市場策略，以便我們能夠在各個週期中保持盈利能力和現金生成能力。

As we evaluate our business areas, we continue to expect the following over the long term with some natural volatility in size and timing of orders across fiscal periods. We expect our High School Park and Recreation business unit to grow through adoption of video displays for sporting and educational use. These customers are deploying more Daktronics professional-grade technology and sophisticated content increasing the total addressable market.

在評估我們的業務領域時，我們繼續預計，從長期來看，各個會計期間的訂單規模和時間會出現一些自然波動。我們預計我們的高中公園和娛樂業務部門將透過採用視訊顯示器用於體育和教育用途來實現成長。這些客戶正在部署更多的達科專業級技術和複雜的內容，從而擴大了整個潛在市場。

In the Commercial area, we are focused on increasing sales channels with audiovisual integrators for end use in government, military, health care and corporate applications, which will create growth in this business area. In addition, customers depending on out-of-home advertising or self-promotion use our products and services as an effective medium for both indoor and outdoor applications. We expect existing and new customers to purchase displays to install in new locations as well as replacement displays for existing locations to capitalize on the effectiveness of digital technologies.

在商業領域，我們專注於增加與視聽整合商的銷售管道，以用於政府、軍事、醫療保健和企業應用的最終用途，這將創造該業務領域的成長。此外，依賴戶外廣告或自我推銷的客戶將我們的產品和服務用作室內和室外應用的有效媒介。我們預計現有和新客戶將購買顯示器安裝在新地點，並為現有地點更換顯示器，以充分利用數位技術的有效性。

Transportation demand is strong as project planning and approval activities resume to more pre-pandemic levels, and our customers move forward in purchasing displays used for intelligent Transportation systems and for mass transit venues. Infrastructure spending should continue to benefit this segment as digital signage is often used in these projects, and we are qualified to do business in all U.S. states.

隨著專案規劃和審批活動恢復到疫情前的水平，交通需求強勁，並且我們的客戶在購買用於智慧交通系統和公共交通場館的顯示器方面取得進展。基礎設施支出應繼續使該細分市場受益，因為這些項目中經常使用數位標牌，而且我們有資格在美國所有州開展業務。

In the International business unit, we continue to experience a softer market due to macroeconomic and geopolitical factors. We expect to see these factors to continue to impact sales in the coming year.

在國際業務部門，由於宏觀經濟和地緣政治因素，我們的市場持續疲軟。我們預計這些因素將繼續影響來年的銷售。

We are watching developments closely and have and can adjust resources and commitments accordingly. Over the longer term, we expect similar growth trends in the Commercial and Transportation areas outside the U.S.. We also expect continued interest in sports venue projects, and these will be a focus in our marketing efforts.

我們正在密切關注事態發展，並且已經並且可以相應地調整資源和承諾。從長遠來看，我們預計美國以外的商業和運輸領域將出現類似的成長趨勢。我們也預期人們對體育場館計畫將持續感興趣，而這些將成為我們行銷工作的重點。

The Live Events segment outlook remains strong due to large stadium renovations, continued replacement cycles and expansion of sales efforts beyond sports efforts areas. We are the acknowledged market leader in this segment, which allows us to be strategic in our pricing and contract terms while being very mindful about the profitability of this business.

由於大型體育場翻新、持續的更換週期以及體育活動領域以外的銷售活動的擴展，現場活動領域的前景仍然強勁。我們是該領域公認的市場領導者，這使我們能夠在定價和合約條款方面具有策略性，同時非常關注該業務的獲利能力。

In FY '24, we will make investments in high-return projects and technologies to support long-term profitability. Our experience in engineering, process design, service design and product development capabilities and investments made in affiliated companies are very important factors in continuing to develop, produce and offer the most up-to-date digital displays and control system solutions desired by the market.

在 24 財年，我們將投資高回​​報項目和技術，以支持長期獲利能力。我們在工程、製程設計、服務設計和產品開發能力方面的經驗以及對附屬公司的投資是繼續開發、生產和提供市場所需的最新數位顯示和控制系統解決方案的非常重要的因素。

We will continue to invest in our development efforts and our affiliated companies to release differentiated product platforms, software offerings and support services. We will also advance critical architecture and design in new competitive narrow pixel pitch and micro LED technologies, sustainable technologies, software architecture and other related areas. We also plan to grow our operational efficiency by focusing on retention of our highest performing team members and capitalization on automation capabilities added over the last years.

我們將繼續投資於我們的開發工作和我們的附屬公司，以發布差異化的產品平台、軟體產品和支援服務。我們還將推進新的有競爭力的窄像素間距和 Micro LED 技術、永續技術、軟體架構和其他相關領域的關鍵架構和設計。我們還計劃透過專注於保留表現最好的團隊成員和利用過去幾年增加的自動化功能來提高營運效率。

We will invest in digital transformation project automation that will support improved customer and employee experiences and lower cost to operate. We believe the stage is set for a strong fiscal 2024 and look forward to continued growth of sales and expansion of operating income.

我們將投資數位轉型專案自動化，以支援改善客戶和員工體驗並降低營運成本。我們相信 2024 財年的強勁表現已經做好，並期待銷售額持續成長和營業收入擴大。

With that, I would ask the operator to please open the line for questions.

這樣，我會要求接線員打開電話詢問問題。

(Operator Instructions) Our first question comes from the line of BJ Cook with Singular Research.

（操作員說明）我們的第一個問題來自 BJ Cook 和 Singular Research 的線路。

Nice quarter. It looks like gross margins turned out really great from a historical perspective. Can we attribute that to continued improved pricing actions on your backlog? And it seems like inflation is teamed to be here in the short term. Are new orders going to reflect a more historical lower gross margin? I guess, in other words, is your higher gross margin sustainable?

不錯的季度。從歷史角度來看，毛利率似乎非常高。我們能否將其歸因於你們積壓訂單的定價行動的持續改進？通膨似乎將在短期內出現。新訂單是否會反映出歷史上較低的毛利率？換句話說，我想你們的較高毛利率是否可持續？

Yes, I think the -- well, first of all, we're very pleased with the gross profit margin in the last quarter. And as you alluded to, we believe a lot of that is due to the current pricing structure, but also in the smoothness of operations as the supply chain has really become more predictable this year over last year at this time.

是的，我認為——首先，我們對上個季度的毛利率非常滿意。正如您所提到的，我們認為這在很大程度上是由於當前的定價結構，而且還在於營運的平穩性，因為今年的供應鏈確實比去年同期變得更加可預測。

As far as inflationary pressures, it still seems like there's inflationary pressures out there, but not as dynamic or maybe as extreme. And certainly, the stabilization of the supply chain makes all of this more predictable.

就通膨壓力而言，似乎仍然存在通膨壓力，但沒有那麼動態或可能那麼極端。當然，供應鏈的穩定使這一切變得更加可預測。

As we complete the bulge of work that was available after the pandemic, I suspect we will see some return to a more competitive environment. But as a company, we're very sensitive to these inflationary pressures and really the dynamics in the marketplace is today. And so we're very carefully evaluating each opportunity in each market to understand what the competitive nature of that business might be.

當我們完成大流行後的大量工作時，我懷疑我們將看到一些人回到更具競爭性的環境。但作為一家公司，我們對這些通膨壓力非常敏感，而當今市場的動態確實如此。因此，我們非常仔細地評估每個市場的每個機會，以了解該業務的競爭本質。

Got it. Awesome. Similarly, operation -- operating margin was fantastic, too. I know just one quarter that we're looking at and some of that was due to the gross margin. But it seemed like you supported a notably higher amount of revenue with similar operating expenses compared to first quarter last year. So I guess a similar question, is this reflective of your operational improvements filtering through the P&L? Again, is this sustainable cost structure going forward?

知道了。驚人的。同樣，營運利潤率也非常好。我知道我們只關註四分之一，其中一些是由於毛利率。但與去年第一季相比，您在類似的營運支出下支持的收入似乎明顯更高。所以我猜想有一個類似的問題，這是否反映了您透過損益表過濾的營運改善？同樣，這種可持續的成本結構是否會繼續發展？

Yes. We believe that we were able to ship that much product, first of all, because we've invested and installed and put into place a lot of automation equipment in the past 18 months. And the teams that are responsible for those systems have had an ample of time to improve and understand the operations of those. We've also increased our staffing levels greatly over the past 12 to 18 months and also have a more stable workforce that understands how to -- the products and what they're expected or what we would like them to do.

是的。我們相信，我們能夠運送這麼多產品，首先是因為我們在過去 18 個月投資、安裝並投入使用了大量自動化設備。負責這些系統的團隊有充足的時間來改善和了解這些系統的運作。在過去的 12 到 18 個月裡，我們還大大增加了我們的人員配備水平，並且擁有一支更穩定的員工隊伍，他們了解如何——產品以及他們的期望或我們希望他們做什麼。

So I think we have an understanding of what we can deliver. Now can we keep a stable backlog in place into the future quarters and consistently keep all of those fulfillment areas running at a high level will be the management team's focus over the coming quarters.

所以我認為我們了解我們可以提供什麼。現在，我們能否在未來幾季保持穩定的積壓工作，並始終保持所有這些履行領域的高水準運行，將是管理團隊在未來幾季的重點。

Okay. A couple of questions on the debt structure. Is the -- can you pay the mortgage without prepayment penalty? If so, is that your intention in the long term? I mean I'm sure that comes with the caveat that working capital and CapEx is secure?

好的。關於債務結構的幾個問題。您可以在沒有提前還款罰款的情況下支付抵押貸款嗎？如果是這樣，這是您的長期意圖嗎？我的意思是，我確信營運資金和資本支出是安全的？

We are able, BJ, to repay that mortgage at any time. And as the management team and our Board reviews the outlook, we'll be evaluating the use of that cash and working to put it to use for different opportunities to invest it back in the company or like you mentioned, we could prepay.

BJ，我們可以隨時償還房貸。當管理團隊和我們的董事會審查前景時，我們將評估該現金的使用情況，並努力將其用於不同的機會，將其投資回公司，或者像您提到的那樣，我們可以預付款。

So can you remind us what would trigger the conversion of the debt? It looks like the stock has been over the conversion price for a while, but it hasn't converted yet. Do you have force conversion rates? I think so. Could you remind us about that situation?

那麼您能提醒我們什麼會觸發債務轉換嗎？看起來該股票已經超過轉換價格一段時間了，但還沒有轉換。你們有力量轉換率嗎？我想是這樣。您能提醒我們當時的狀況嗎？

We do have a term of force conversion, but that doesn't come into effect until 18 months from May of 2023. And then it's that certain tranches we can force conversion. And the stock price that's also be over 150% of that $6.31 conversion price.

我們確實有強制轉換期限，但要到 2023 年 5 月起的 18 個月後才生效。然後我們可以強制轉換某些部分。股價也超過 6.31 美元轉換價格的 150%。

Awesome. Just one last quick one, assuming it's probably too early for guidance or too soon. Is there anything you can share about how you guys -- your outlook for the remainder of the fiscal year? It seems like there is a small reduction in orders year-over-year. The press release noticed that -- noted that, that was in the -- the big bugaboo was Commercial segment. Anything you can share there?

驚人的。只是最後一個快速的，假設現在提供指導可能還為時過早或太快。關於你們對本財年剩餘時間的展望，你們有什麼可以分享的嗎？訂單量似乎比去年同期略有減少。新聞稿指出，最大的問題是商業領域。有什麼可以分享的嗎？

We don't typically give guidance, so that is, we're still on that track. And in the Commercial business area, the out-of-home business tends to be the most sensitive to economic factors. As you might recall, in the next -- last 9 months, there is this, are we going to have a recession? Are we going to have a soft landing? It seems like the press or the pool of experts out there are getting more optimistic that this might be a soft landing, which would bode well for that business segment typically.

我們通常不會提供指導，所以我們仍然在這條軌道上。在商業業務領域，戶外業務往往對經濟因素最敏感。您可能還記得，在接下來的過去 9 個月裡，我們會陷入衰退嗎？我們會軟著陸嗎？媒體或專家似乎越來越樂觀地認為這可能是軟著陸，這通常對該業務部門來說是個好兆頭。

And just to highlight, too, BJ, there is some variability in our larger project business in the Commercial market, what we call the spectacular business area. So there can be ups and downs in that and when you compare one quarter to the other. And that just causes some variability in that level of sales -- or, excuse me, level of orders.

BJ，我還要強調一下，我們在商業市場（我們稱之為壯觀的業務領域）的大型專案業務存在一些變化。因此，當你將一個季度與另一個季度進行比較時，可能會有起伏。這只會導致銷售水準（或者，對不起，訂單水準）出現一些變化。

(Operator Instructions) I'm showing no further questions in queue at this time. I'd like to turn the call back to Reece Kurtenbach for closing remarks.

（操作員說明）目前，我在隊列中沒有顯示任何其他問題。我想將電話轉回里斯·庫爾滕巴赫 (Reece Kurtenbach)，讓其致閉幕詞。

Well, I appreciate everybody attending today's conference call and the questions and any other feedback we will receive. We will host the next conference call when our second quarter results are released. And I look forward to talking to you all again then. Thanks, everyone. Have a great day.

嗯，我感謝參加今天電話會議的每個人以及我們將收到的問題和任何其他回饋。我們將在第二季業績發布後召開下一次電話會議。我期待著屆時再次與大家交談。感謝大家。祝你有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。