Ducommun Inc (DCO) 2022 Q4 法說會逐字稿

Good day and thank you, for standing by. Welcome to the Fourth Quarter 2022 Ducommun Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 Ducommun 2022 年第四季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to Ducommun's Vice President, Chief Financial Officer and Controller and Treasurer, Chris Wampler. Please go ahead.

我現在想將會議轉交給 Ducommun 的副總裁、首席財務官兼財務主管兼財務主管 Chris Wampler。請繼續。

Thank you, and welcome to Ducommun's 2022 Fourth Quarter Conference Call. With me today is Steve Oswald, Chairman, President and CEO. I'm going to discuss certain limitations to any forward-looking statements regarding future events, projections or performance that we may make during the prepared remarks or the Q&A session that follows.

謝謝，歡迎來到 Ducommun 2022 年第四季度電話會議。今天和我在一起的是董事長、總裁兼首席執行官史蒂夫·奧斯瓦爾德 (Steve Oswald)。我將討論我們在準備好的評論或隨後的問答環節中可能做出的關於未來事件、預測或表現的任何前瞻性陳述的某些限制。

Certain statements today that are not historical facts, including any statements as to future market conditions, results of operations and financial projections are forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are, therefore, prospective. These forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from the future results expressed or implied by such forward-looking statements.

今天的某些非歷史事實的陳述，包括關於未來市場狀況、經營結果和財務預測的任何陳述，根據 1995 年私人證券訴訟改革法案屬於前瞻性陳述，因此具有前瞻性。這些前瞻性陳述受風險、不確定性和其他因素的影響，這些因素可能導致實際結果與此類前瞻性陳述所表達或暗示的未來結果存在重大差異。

Although, we believe that the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. In addition, estimates of future operating results are based on the company's current business, which is subject to change.

儘管我們認為前瞻性陳述中反映的預期是合理的，但我們無法保證此類預期將被證明是正確的。此外，對未來經營業績的估計是基於公司目前的業務，可能會發生變化。

Particular risks facing Ducommun include, among other things, the cyclicality of our end-use markets, the impact of COVID-19 on our operations or customers, the level of U.S. government defense spending, timing of orders from our customers, legal and regulatory risks, the cost of expansion and acquisitions, competition, economic and geopolitical developments, pandemics and disasters, natural or otherwise.

Ducommun 面臨的特殊風險包括，除其他事項外，我們的最終用途市場的周期性、COVID-19 對我們的運營或客戶的影響、美國政府的國防開支水平、我們客戶的訂單時間、法律和監管風險、擴張和收購、競爭、經濟和地緣政治發展、流行病和自然災害或其他災害的成本。

These risks and others are described in our annual report on Form 10-K filed with the SEC, and our forward-looking statements are subject to these risks. Statements made during this call are only as of the time made, and we do not intend to update any statements made in this presentation, except if and as required by regulatory authorities.

這些風險和其他風險在我們向美國證券交易委員會提交的 10-K 表格年度報告中有所描述，我們的前瞻性陳述受這些風險的影響。本次電話會議期間發表的聲明僅截至發表時，我們不打算更新本演示文稿中的任何聲明，除非監管機構要求。

This call also includes non-GAAP financial measures. Please refer to our filings with the SEC for a reconciliation of the GAAP to non-GAAP measures referenced on this call. We filed our 2022 annual report on Form 10-K with the SEC today.

此電話會議還包括非 GAAP 財務指標。請參閱我們向美國證券交易委員會提交的文件，了解 GAAP 與本次電話會議中提及的非 GAAP 措施的協調情況。我們今天向美國證券交易委員會提交了 10-K 表格的 2022 年年度報告。

I would now like to turn the call over to Steve Oswald to review the operating results. Steve?

我現在想把電話轉給史蒂夫奧斯瓦爾德來審查運營結果。史蒂夫？

Okay, thank you, Chris, and thanks, everyone, for joining us today for our fourth quarter conference call. Today as usual, I'll give an update of the current situation of the company, after which Chris will review our financials in detail.

好的，謝謝克里斯，也感謝大家今天加入我們的第四季度電話會議。今天像往常一樣，我將介紹公司的最新情況，之後克里斯將詳細審查我們的財務狀況。

I'm happy to report that Ducommun's fourth quarter top line performance was very strong. The company is delivering year-over-year revenue growth of 14% to $188.3 million. As mentioned in the press release, not only shows that our end markets are in very good shape, but also highlights Ducommun's operational strength, managing the supply chain and workforce.

我很高興地報告 Ducommun 第四季度的頂線表現非常強勁。該公司的收入同比增長 14% 至 1.883 億美元。正如新聞稿中所提到的，這不僅表明我們的終端市場狀況良好，而且凸顯了 Ducommun 的運營實力，管理供應鍊和勞動力。

Turning to the markets the continued recovery of commercial aerospace as a real bright spot once again in Q4, the Boeing 737 MAX business up 37% year-over-year and the Airbus A320 also having significant growth up 72% year-over-year overall, commercial aerospace with Airbus, Boeing, Gulfstream and others was up over 60% from Q4, 2021.

轉向市場，商業航空的持續復甦再次成為第四季度真正的亮點，波音 737 MAX 業務同比增長 37%，空客 A320 也有顯著增長，整體同比增長 72% ，與空中客車、波音、灣流等公司的商業航空業務比 2021 年第四季度增長了 60% 以上。

Commercial aerospace business is well showed year-over-year revenue growth now for the sixth consecutive quarter, an excellent sign as the industry and build rates recover. The company's defense business after 2 years of unprecedented growth in 2020 and 2021, was only down slightly in Q4, but once again delivered solid performance over $100 million in revenue as we prepare for increasing DoD budgets and FMS in the years ahead.

商業航空航天業務現在連續第六個季度實現收入同比增長，這是行業和建造率復甦的極好跡象。該公司的國防業務在 2020 年和 2021 年經歷了 2 年前所未有的增長後，在第四季度僅略有下降，但隨著我們為未來幾年增加國防部預算和 FMS 做準備，再次實現了超過 1 億美元的穩健表現。

The company posted solid gross profit of 20.5%, down year-over-year due partially to several one-time factors, which Chris will cover in his remarks. The team also posted adjusted operating income margins of 8.1%, adjusted EBITDA of $24.5 million was strong an increased slightly year-over-year.

該公司公佈的毛利潤為 20.5%，同比下降，部分原因是幾個一次性因素，Chris 將在他的評論中介紹這些因素。該團隊還公佈了 8.1% 的調整後營業收入利潤率，調整後的 EBITDA 為 2450 萬美元，同比略有增長。

Ducommun has adjusted EBITDA margins of 13% in Q4 as well, and we anticipate EBITDA to be solid this year with much stronger numbers in 2024 once the plant closures and restructuring activities in 2023 are behind us. Quality of earnings was good with the company reaching GAAP diluted EPS of $0.65 a share versus $9.05 a share for Q4, 2021, but with adjustments, the diluted EPS of $0.85 a share was comparable to diluted EPS of $0.88 in the prior year.

Ducommun 也將第四季度的 EBITDA 利潤率調整為 13%，我們預計，一旦 2023 年工廠關閉和重組活動結束，2024 年 EBITDA 將保持穩健。收益質量良好，公司達到 GAAP 稀釋後每股收益 0.65 美元，而 2021 年第四季度為每股 9.05 美元，但經過調整後，每股 0.85 美元的稀釋後每股收益與上一年 0.88 美元的稀釋後每股收益相當。

Some key drivers for the lower GAAP diluted EPS include restructuring chargers and the prior year benefit from the significant gain on the lease sellback of our Gardena performance centers industrial property. 1 area of business, I would like to highlight as we move out of the pandemic-related headwinds in the past few years is the significant improvement of our commercial aerospace business within our Structural Systems segment during 2022.

較低的 GAAP 攤薄每股收益的一些主要驅動因素包括重組充電器和前一年從我們的加迪納表演中心工業物業的租賃回售中獲得的顯著收益。在我們擺脫過去幾年與流行病相關的逆風時，我想強調的第一個業務領域是 2022 年我們結構系統部門的商業航空航天業務的顯著改善。

Commercial aerospace revenue within Structures was $165 million or roughly 55% higher than in 2021. In addition, Q4 commercial aerospace revenues were $43 million or 45% higher than a year ago as we see very nice growth continuing in this part of the business. I will also add that this includes very little 787 business, which we see as an additional catalyst in 2023 through 2025.

Structures 內的商業航空航天收入為 1.65 億美元，比 2021 年高出約 55%。此外，第四季度商業航空航天收入為 4300 萬美元，比去年同期高出 45%，因為我們看到這部分業務繼續保持非常好的增長。我還要補充一點，這包括很少的 787 業務，我們將其視為 2023 年至 2025 年的額外催化劑。

Finally, the backlog at the end of Q4, 2022 stood at $325 million or 17% higher than Q4, 2021. So we are set for excellent growth now and in the future. Investors should also keep in mind our Structures business is component-based, not wings or other large capital-intensive products. And we strive as well to produce products of only industry niche technologies, such as titanium hot form and superplastic forming.

最後，2022 年第四季度末的積壓訂單為 3.25 億美元，比 2021 年第四季度高出 17%。因此，我們現在和未來都將實現出色的增長。投資者還應記住，我們的結構業務是基於組件的，而不是機翼或其他大型資本密集型產品。我們也力求生產僅採用行業利基技術的產品，例如鈦合金熱成型和超塑成型。

Switching to the company's backlog performance, the commercial aerospace backlog increased sequentially for the seventh consecutive quarter from $266 million at the end of Q1, 2021 to $450 million at the end of Q4, 2022 that's an increase of 69%. And this was led by the 737 MAX, ViaSat for in-flight entertainment, the A320 A220 Gulfstream, all which we would expect after we came out of a very tough 2020 and 2021 for this part of the Ducommun's business.

轉向公司的積壓業績，商業航空航天積壓訂單連續第七個季度從 2021 年第一季度末的 2.66 億美元增加到 2022 年第四季度末的 4.5 億美元，增幅為 69%。這是由 737 MAX、用於機上娛樂的 ViaSat、A320 A220 Gulfstream 引領的，在 Ducommun 這部分業務度過非常艱難的 2020 年和 2021 年之後，我們可以期待所有這些。

Defense backlog remained solid in Q4 as well and ended the quarter at $457 million. For offloading from defense primes, the work continues, and we did meet and significantly exceeded our target of $45 million in 2022, up from roughly $31 million in 2021. 2023 is a big year as well. We're expecting roughly $90 million with a great deal of that in our circuit card business for Raytheon at sites such as Appleton, Wisconsin and Tulsa, Oklahoma.

國防積壓訂單在第四季度也保持穩定，本季度末為 4.57 億美元。對於國防主要業務的卸載，工作仍在繼續，我們確實達到並大大超過了 2022 年 4500 萬美元的目標，高於 2021 年的大約 3100 萬美元。2023 年也是重要的一年。我們預計大約有 9000 萬美元，其中很大一部分用於雷聲公司在威斯康星州阿普爾頓和俄克拉荷馬州塔爾薩等地點的電路卡業務。

The long-term run rate of these defense programs already commercialized or in development for offloading will be over $125 million for Ducommun by 2025 as primes continue to drive cost reduction and challenge the reasoning of keeping certain types of production in-house. Company's cost actions and lead organizational structure continue to pay dividends, too. Our team delivered another excellent quarter as well in Q4 managing the supply chain.

到 2025 年，這些已經商業化或正在開發中的國防項目的長期運行率將為 Ducommun 帶來超過 1.25 億美元的收益，因為 primes 繼續推動成本降低並挑戰將某些類型的生產保持在內部的理由。公司的成本行動和領先的組織結構也繼續帶來紅利。我們的團隊在管理供應鏈的第四季度也交付了另一個出色的季度。

And this not only shows in our financials, but we also could not be in a better place with our customers regarding our odd-time delivery and quality. Corporate costs as a percentage of revenue were also very favorable at 4.1% compared to 5.3% last year in Q4. I also want to mention our very successful Investor Day on December 8. First, my thanks to all who participated both in person and virtually, and we very much appreciate the great feedback.

這不僅體現在我們的財務上，而且在我們的準時交貨和質量方面，我們與客戶的關係也再好不過了。公司成本佔收入的百分比也非常有利，為 4.1%，而去年第四季度為 5.3%。我還想提一下 12 月 8 日我們非常成功的投資者日。首先，我感謝所有親自和虛擬參與的人，我們非常感謝大家提供的反饋。

We certainly disclose more of that meeting than in the past, especially around our strong results for our 4 acquisitions, and the post-pandemic game plan now is in place. The path ahead for the company and the investors is now clear through 2027. In addition, Chris will provide further details, but we're off to a very good start in 2023 with the plant consolidations and other restructuring activities, along with preparing for the planned real estate sales.

我們當然會比過去更多地披露那次會議，特別是圍繞我們 4 次收購的強勁結果，以及大流行後的遊戲計劃現在已經到位。到 2027 年，公司和投資者的前進道路現在已經很清楚了。此外，克里斯將提供更多細節，但我們在 2023 年有了一個很好的開端，包括工廠整合和其他重組活動，以及為計劃的房地產銷售。

For revenue guidance in 2023, we see the company's revenue coming in at the low to mid-single-digit range. The commercial aerospace industry recovery will continue to lead the way and revenue will be solid over the quarters ahead as we see more and more volume return with defense being solid or impacted by some timing on a few programs, but still having a very good backlog.

對於 2023 年的收入指引，我們認為該公司的收入將處於中低個位數範圍內。商業航空航天業的複蘇將繼續引領潮流，收入將在未來幾個季度保持穩健，因為我們看到越來越多的數量回報，國防穩固或受到一些項目的某些時間的影響，但仍有大量積壓。

The 2 plant closings will also see some slight reduction in revenue as we improve nonstrategic and low-volume business. We continue as well to be active and opportunistic with acquisition opportunities as in the past, and believe this is another catalyst to drive us possibly higher in the year ahead.

隨著我們改善非戰略性和小批量業務，關閉 2 家工廠也將導致收入略有下降。我們也將一如既往地積極把握收購機會，相信這是推動我們在未來一年走得更高的另一個催化劑。

Now let me provide some additional color on our markets, products and programs. Beginning with our military and space sector, we posted fourth quarter revenue of $108.4 million, a slight decrease versus 2021. Despite being down, as mentioned earlier, it was greater than $100 million and a solid showing for the business in Q4. We saw increases in demand for our missile programs, mirror and Patriot along with their pay team.

現在讓我為我們的市場、產品和項目提供一些額外的色彩。從我們的軍事和航天部門開始，我們發布的第四季度收入為 1.084 億美元，與 2021 年相比略有下降。儘管有所下降，但如前所述，它超過了 1 億美元，並且在第四季度業務表現良好。我們看到對我們的導彈計劃、鏡子和愛國者以及他們的薪酬團隊的需求增加。

The fourth quarter military and space revenue represented 58% of Ducommun's revenue in the period, down from 69% last year. And this trend will continue to reflect more balance with commercial aerospace, which we like. We also ended the fourth quarter with a solid backlog of $457 million, which represents nearly 50% of the company's total backlog.

第四季度軍事和航天收入佔 Ducommun 同期收入的 58%，低於去年的 69%。這種趨勢將繼續反映出與我們喜歡的商業航空航天的更多平衡。我們還在第四季度結束時積壓了 4.57 億美元，占公司總積壓訂單的近 50%。

Within our commercial aerospace operations, fourth quarter revenue increased year-over-year to $68 million, driven mainly by build rate increases on large aircraft platforms, in-flight products to ViaSat and other commercial aerospace platforms. Ducommun expect - continue improvement in the commercial space market overall to gain momentum in 2023, and the future is bright across our product offerings.

在我們的商業航空航天業務中，第四季度收入同比增長至 6800 萬美元，這主要是由於大型飛機平台、ViaSat 和其他商業航空航天平台的機上產品建造率的提高。 Ducommun 預計——商業空間市場整體將繼續改善，以在 2023 年獲得發展勢頭，我們的產品前景一片光明。

Our delivery and quality also continues to stand out as we move ahead. The backlog within commercial aerospace stands at $450 million at the end of the fourth quarter and was $117 million higher or a 35% increase year-over-year from Q4, 2021.

隨著我們的前進，我們的交付和質量也繼續脫穎而出。截至第四季度末，商業航空領域的積壓訂單為 4.5 億美元，比 2021 年第四季度增加了 1.17 億美元，同比增長 35%。

With that, I'll have Chris review our financial results in detail. Chris?

有了這個，我會讓克里斯詳細審查我們的財務結果。克里斯？

Thank you, Steve. As a reminder, please see the company's 10-K and Q4 earnings release for a further description of information mentioned on today's call. As Steve discussed, our fourth quarter results reflect another quarter of strong performance. The fourth quarter's results saw a significant increase once again in commercial aerospace revenue.

謝謝你，史蒂夫。提醒一下，請參閱公司的 10-K 和第四季度收益發布，以進一步了解今天電話會議中提到的信息。正如史蒂夫所討論的那樣，我們第四季度的業績反映了又一個季度的強勁表現。第四季度的結果顯示，商業航空航天收入再次大幅增長。

We remain encouraged by the continued strength in domestic and global travel, which should help support higher long-term demand and shipments going forward. There are multitude of positive themes as we close out 2022 and combined with actions being taken through our restructured program, we're looking forward to building on our 2022 performance.

我們仍然對國內和全球旅行的持續強勁感到鼓舞，這應該有助於支持更高的長期需求和未來的出貨量。在我們結束 2022 年之際，有許多積極的主題，再加上我們通過重組計劃採取的行動，我們期待著在 2022 年的業績基礎上再接再厲。

Now turning to our fourth quarter results, revenue for the fourth quarter of 2022 was $188.3 million versus $164.8 million for the fourth quarter of 2021. The year-over-year increase reflects $26.4 million of growth across our commercial aerospace platforms, partially offset by $4.7 million of lower revenue within the military and space sector.

現在轉向我們的第四季度業績，2022 年第四季度的收入為 1.883 億美元，而 2021 年第四季度為 1.648 億美元。同比增長反映了我們商業航空平台的 2640 萬美元增長，部分被 4.7 美元抵消軍事和航天部門的收入減少了 100 萬美元。

A portion of the year-over-year increase is directly attributable to MagSeal, which we acquired in December of 2021, thus our overall growth was a combination of organic and inorganic growth. Ducommun's overall backlog at the end of the fourth quarter was approximately $961 million. This reflects recent growth across our commercial aerospace platforms.

部分同比增長直接歸因於我們於 2021 年 12 月收購的 MagSeal，因此我們的整體增長是有機增長和無機增長的結合。 Ducommun 第四季度末的總積壓訂單約為 9.61 億美元。這反映了我們商業航空航天平台最近的增長。

Our defense backlog was $457 million, and we remain positioned for solid -- continued solid performance as we begin the New Year with our defense business. As a reminder, we define backlog as potential revenue based on customer purchase orders and long-term agreements with firm fixed prices and expected delivery dates of 24 months or less.

我們的防務積壓訂單為 4.57 億美元，在我們以防務業務開始新的一年之際，我們仍然保持穩健的表現 - 持續穩健的表現。提醒一下，我們將積壓訂單定義為基於客戶採購訂單和長期協議的潛在收入，這些協議具有固定的固定價格和 24 個月或更短的預期交貨日期。

We posted total gross profit of $38.6 million for the quarter versus $37.3 million in the prior year period, while gross margins were 20.5% and 22.6% in 2022 and 2021, respectively. On an adjusted basis, gross margins were 21% and 23% in 2022 and 2021, respectively. Throughout 2022, we've had adjustments for items such as climate fire-related costs, MagSeal inventory step-up amortization and cost of sales related restructure expenses.

我們公佈的本季度總毛利潤為 3860 萬美元，而去年同期為 3730 萬美元，而 2022 年和 2021 年的毛利率分別為 20.5% 和 22.6%。在調整後的基礎上，2022 年和 2021 年的毛利率分別為 21% 和 23%。在整個 2022 年，我們對氣候火災相關成本、MagSeal 庫存遞增攤銷和銷售成本相關重組費用等項目進行了調整。

As we finish 2022 and head into 2023, we expect these types of adjustments to wind down by midyear. While gross margins of 20% to 21% plus are good from a historical perspective for DCO, they continue to lag the levels we ran at in 2021. We globally recognized challenges around supply chain and labor availability have had some impact -- have had some level of impact on nearly all manufacturing companies.

隨著 2022 年的結束和 2023 年的到來，我們預計這些類型的調整將在年中結束。雖然從歷史角度來看 DCO 的毛利率在 20% 到 21% 以上是不錯的，但它們仍然落後於我們在 2021 年達到的水平。我們在全球範圍內認識到圍繞供應鍊和勞動力可用性的挑戰產生了一些影響 - 已經產生了一些影響對幾乎所有製造企業的影響程度。

However, as Steve mentioned, we continue to manage through without significant supply chain impacts due to the proactive supply chain efforts, executing strategic buys, leveraging our performance center flexibility and utilizing inventory investments. But we have seen certain performance centers to continue to have more of a challenge on various program flow-through, products mix and profitability, 2 of which are in Monrovia, California and Berryville, Arkansas operations.

然而，正如史蒂夫所提到的，由於積極的供應鏈努力、執行戰略採購、利用我們績效中心的靈活性和利用庫存投資，我們繼續在沒有對供應鏈產生重大影響的情況下進行管理。但我們已經看到某些性能中心在各種程序流程、產品組合和盈利能力方面繼續面臨更多挑戰，其中 2 個位於加利福尼亞州蒙羅維亞和阿肯色州貝里維爾。

As mentioned during our Investor Day dialogue in December 2022, we anticipate repositioning production from these facilities during the first half of 2023. The consolidations will redeploy the production from these performance centers, which have been unable to perform at expected profitability levels and allow us to better utilize our low-cost manufacturing facility in Guaymas, Mexico.

正如我們在 2022 年 12 月的投資者日對話中提到的，我們預計將在 2023 年上半年重新定位這些設施的生產。整合將重新部署這些性能中心的生產，這些性能中心無法達到預期的盈利水平，並使我們能夠更好地利用我們在墨西哥瓜伊馬斯的低成本製造工廠。

In addition to taking out these fixed costs, we continue to aggressively manage our discretionary spending, all with the purpose of driving margin expansion. Ducommun reported operating income for the fourth quarter of $9.7 million or 5.1% of revenue compared to $11.8 million or 7.2% of revenue in the prior year period.

除了消除這些固定成本外，我們還繼續積極管理我們的可自由支配支出，所有這些都是為了推動利潤率增長。 Ducommun 報告第四季度營業收入為 970 萬美元，佔收入的 5.1%，而去年同期為 1180 萬美元，佔收入的 7.2%。

Adjusted operating income was $15.2 million or 8.1% of revenue this quarter compared to $15.3 million or 9.3% of revenue in the comparable prior period last year. The company reported net income for the fourth quarter of 2022 of $8.1 million or $0.65 per diluted share compared to net income of $110.8 million or $9.05 per diluted share a year ago.

本季度調整後營業收入為 1520 萬美元，佔收入的 8.1%，而去年同期為 1530 萬美元，佔收入的 9.3%。該公司報告稱，2022 年第四季度的淨收入為 810 萬美元或攤薄後每股收益 0.65 美元，而一年前的淨收入為 1.108 億美元或攤薄後每股收益 9.05 美元。

On an adjusted basis, the company reported net income of $10.6 million or $0.85 per diluted share compared to net income of $10.8 million or $0.88 in 2021. Adjusted EBITDA for the fourth quarter was $24.5 million or 13% of revenue compared to $24.4 million or 14.8% of revenue for the comparable period in 2021.

在調整後的基礎上，該公司報告的淨收入為 1060 萬美元或每股攤薄收益 0.85 美元，而 2021 年的淨收入為 1080 萬美元或 0.88 美元。第四季度調整後的 EBITDA 為 2450 萬美元或占收入的 13%，而 2440 萬美元或 14.8%佔 2021 年同期收入的百分比。

Now let me turn to the segment results. Our Structural Systems segment posted revenue of $68.2 million in the fourth quarter of 2022 versus $58.8 million last year. The year-over-year increase reflects $13.4 million of higher sales across our commercial aerospace applications, partially offset by $4 million of lower revenue within the company's military and space markets.

現在讓我談談細分結果。我們的結構系統部門在 2022 年第四季度的收入為 6820 萬美元，而去年為 5880 萬美元。同比增長反映了我們的商業航空航天應用銷售額增加了 1340 萬美元，部分被公司軍事和太空市場收入減少 400 萬美元所抵消。

Structural Systems operating income for the quarter was $4.4 million or 6.4% of revenue compared to $5.1 million or 8.6% of revenue last year. The year-over-year operating margin decrease was primarily due to unfavorable product mix and higher restructuring charges, partially offset by favorable manufacturing volume.

本季度結構系統營業收入為 440 萬美元，佔收入的 6.4%，而去年為 510 萬美元，佔收入的 8.6%。營業利潤率同比下降主要是由於不利的產品組合和較高的重組費用，部分被有利的製造量所抵消。

Excluding restructure charges and other adjustments in both years, the segment operating margin was 10.8% in 2022 versus 12.2% in 2021. This is a solid operating performance from the Structural Systems segment. As a reminder, the results of our (technical difficulty) MagSeal business, which was acquired in Q4, 2021 are part of the Structures business.

不計入兩年的重組費用和其他調整，該部門 2022 年的營業利潤率為 10.8%，而 2021 年為 12.2%。這是結構系統部門穩健的經營業績。提醒一下，我們在 2021 年第四季度收購的（技術困難）MagSeal 業務的結果是結構業務的一部分。

Our Electronic Systems segment posted revenue of $120 million in the fourth quarter of 2022 versus $106 million in the prior year period. These results reflect $13 million of higher commercial aerospace revenue, partially offset by $0.7 million of lower revenue across the company's military and space customers.

我們的電子系統部門在 2022 年第四季度的收入為 1.2 億美元，而去年同期為 1.06 億美元。這些結果反映出 1300 萬美元的商業航空航天收入增加，部分被公司軍事和航天客戶的 70 萬美元收入減少所抵消。

Electronic Systems operating income for the fourth quarter was $13 million or 10.8% of revenue versus $15.4 million or 14.6% of revenue in the prior year period, primarily reflecting unfavorable product mix and higher restructuring charges, partially offset by favorable manufacturing volume.

第四季度電子系統營業收入為 1300 萬美元，佔收入的 10.8%，而去年同期為 1540 萬美元，佔收入的 14.6%，這主要反映了不利的產品組合和更高的重組費用，部分被有利的製造量所抵消。

Excluding restructure charges and other adjustments in both years, the segment operating margin was 12.9% in 2022 versus 15.8% in 2021. While not at the top end of the range, this segment has operated. This was a solid quarter for the Electronics segment. As a reminder, and discussed at our recent Investor Day, we commenced a restructure initiative back in Q2, 2022.

不計入兩年的重組費用和其他調整，該部門 2022 年的營業利潤率為 12.9%，而 2021 年為 15.8%。雖然不在該範圍的頂端，但該部門已經運營。對於電子部門來說，這是一個穩健的季度。提醒一下，並在我們最近的投資者日討論過，我們早在 2022 年第二季度就開始了一項重組計劃。

The identified restructure actions are being taken to accelerate the achievement of our strategic goals and better position the company for stronger performance in the short and long-term. During Q4, 2022, we incurred $2.9 million in restructuring charges. The majority of these charges were severance and benefit related.

正在採取已確定的重組行動，以加速實現我們的戰略目標，並使公司在短期和長期內更好地實現更強勁的業績。 2022 年第四季度，我們產生了 290 萬美元的重組費用。這些費用中的大部分與遣散費和福利有關。

We expect to incur an additional $12 million to $16 million in restructuring expense for facility consolidations, severance and impairment of long-lived assets during 2023. Most of the expected remaining charges relate to the repositioning of a portion of our restructuring initiative that I mentioned earlier.

我們預計在 2023 年期間將額外產生 1200 萬至 1600 萬美元的重組費用，用於設施合併、遣散和長期資產減值。大部分預期剩餘費用與我之前提到的部分重組計劃的重新定位有關.

The majority of the production being moved is going to our low-cost operation in Guaymas, Mexico, with the remainder going to other existing performance centers in the United States. Once we wind down production at Monrovia and Berryville, we anticipate selling the associated land and building at both locations.

大部分被轉移的生產將轉移到我們在墨西哥瓜伊馬斯的低成本運營，其餘的將轉移到美國其他現有的績效中心。一旦我們結束在蒙羅維亞和貝里維爾的生產，我們預計將出售這兩個地點的相關土地和建築物。

These initiatives are progressing as expected and - when we complete with our restructure, we anticipate our efforts will generate annualized savings of $11 million to $13 million. We have available liquidity of $246 million as of the end of the fourth quarter. The fourth quarter of each year is typically our strongest from a cash flow generation perspective in 2022 was no exception, and we are pleased with the generation of $32.1 million of cash flow from operations this quarter.

這些舉措正在按預期進行，當我們完成重組時，我們預計我們的努力每年將節省 1100 萬至 1300 萬美元。截至第四季度末，我們的可用流動資金為 2.46 億美元。從現金流產生的角度來看，每年第四季度通常是我們最強的，2022 年也不例外，我們對本季度運營產生的 3210 萬美元現金流感到滿意。

Cash flow from operations in Q4 of 2021 was $11.7 million. Our 12-month debt to adjusted EBITDA ratio was 2.2 and is amongst the lowest in the last several years. We finished 2022 with a full year effective tax rate of 13.6% versus 20.5% in 2021. The rate was lower this year as the majority of the tax in 2021 related to our gain on sale leaseback transaction, which was taxed at a rate in excess of our effective rate, excluding such transactions.

2021 年第四季度的運營現金流為 1170 萬美元。我們 12 個月的債務與調整後 EBITDA 的比率為 2.2，是過去幾年中最低的之一。到 2022 年，我們的全年有效稅率為 13.6%，而 2021 年為 20.5%。今年的稅率較低，因為 2021 年的大部分稅收與我們的售後回租交易收益有關，該交易的稅率超過我們的有效利率，不包括此類交易。

Interest for the full year 2022 was $11.6 million versus $11.2 million in 2021. While our debt refinancing during 2022 was timely and beneficial, the rising interest rate environment drove the increase year-over-year. Assuming no pivot on interest rates during 2022, we expect interest expense to be approximately $18 million in 2023.

2022 年全年的利息為 1160 萬美元，而 2021 年為 1120 萬美元。雖然我們在 2022 年的債務再融資是及時且有益的，但利率上升的環境推動了同比增長。假設 2022 年利率沒有變化，我們預計 2023 年的利息支出約為 1800 萬美元。

And when our interest rate hedge becomes effective January 1, 2024, we anticipate it will provide significant beneficial offset in the longer term. Just 1 additional comment from me, 2022 was the third consecutive year with an environment of significant market and macroeconomical change.

當我們的利率對沖於 2024 年 1 月 1 日生效時，我們預計它將在長期內提供顯著的有益抵消。我再補充一句，2022 年是市場和宏觀經濟環境發生重大變化的連續第三年。

And during the time, we've attempted to continually assess and adjust our priorities as we focus on daily execution to deliver for our customers and all other stakeholders, and we look forward to building on the strong foundation we have established as we move through 2023 and beyond.

在此期間，我們一直在努力不斷評估和調整我們的優先事項，因為我們專注於日常執行，為我們的客戶和所有其他利益相關者提供服務，我們期待在 2023 年建立的堅實基礎上再接再厲超越。

I'll now turn it back over to Steve for closing remarks. Steve?

我現在將把它轉回給史蒂夫作結束語。史蒂夫？

Okay, Chris, thank you. Well, certainly was a strong quarter I hope you're pleased and the year in 2022 was our best top line since 2019. So we feel good about it. As mentioned earlier, the past is now clear coming out of our investor meeting in December. And I think we're off to a very good start in 2023. We've got a lot to do, and I think it's all going to provide a lot of value to shareholders and to the company going forward.

好的，克里斯，謝謝你。嗯，當然是一個強勁的季度，我希望你滿意，2022 年是我們自 2019 年以來最好的收入。所以我們對此感覺很好。如前所述，我們在 12 月的投資者會議上已經清楚地表明了過去。而且我認為我們在 2023 年有了一個很好的開端。我們還有很多工作要做，我認為這一切都將為股東和公司的未來提供很多價值。

In addition, all the meetings I've been having in attending and industry news I have read shows -- I think there's great opportunities as we all know, ahead over the next several years. And Ducommun team will be ready to capture the upside when available. My thanks, as always to our employees and investors for the support as, we include again a very good year and lots of positive things ahead so again, thank you for listening.

此外，我參加的所有會議和我閱讀的行業新聞都表明——我認為眾所周知，未來幾年存在巨大的機會。 Ducommun 團隊將準備好在可用時抓住優勢。我一如既往地感謝我們的員工和投資者的支持，我們再次迎來了非常美好的一年和許多積極的事情，再次感謝您的聆聽。

I'll now open it up for questions.

我現在打開它來提問。

(Operator Instructions) Our first question will come from the line of Ken Herbert from RBC Capital Markets.

（操作員說明）我們的第一個問題將來自 RBC 資本市場的 Ken Herbert。

Ken good morning, thanks for joining us.

肯早上好，感謝您加入我們。

Maybe I just wanted to first talk about the low to mid-single top line expectations for '23. And I wondered, Steve, if you can break that a part a little bit by market. It looks like commercial aero should continue to see some obviously nice growth based on the backlog and build rates. What is your assumptions for growth in that market and then what are your assumptions for growth in defense?

也許我只是想先談談對 23 年的中低收入預期。我想知道，史蒂夫，你是否可以按市場打破這一部分。看起來商業航空應該繼續看到基於積壓和建造率的一些明顯不錯的增長。您對該市場增長的假設是什麼，然後您對國防增長的假設是什麼？

We're certainly going to grow in commercial aero, Ken. We're a little bit -- we're as we've talked about, we're ready to go, right? So we're a little bit with [Spirit] [23.04] and Airbus and Boeing were sort of I wouldn't say we're capped, but we're absolutely going to see growth in commercial aero this year. But we certainly are cheering for them to get to the next level of production. So that's the first thing I'd say.

肯，我們肯定會在商業航空領域發展壯大。我們有點——我們已經說過了，我們準備好了，對吧？所以我們有點 [Spirit] [23.04]，空中客車和波音有點我不會說我們受到限制，但我們今年絕對會看到商業航空的增長。但我們當然為他們達到更高的生產水平而歡呼。所以這是我要說的第一件事。

The second thing, as I mentioned in my remarks with defense, I mean, we have a couple of programs that either through timing and order -- the order situation right now. We're going to basically bring defense in probably right around flat to this year, but we're encouraged with our backlog, and we think 2024 is going to be a better year.

第二件事，正如我在與辯護人的發言中提到的那樣，我的意思是，我們有幾個程序可以通過時間和順序——現在的順序情況。基本上，我們今年的防禦可能會持平，但我們對積壓的工作感到鼓舞，我們認為 2024 年將是更好的一年。

But we think this year with a couple of things, F-18, we have a little bit of a program there Apache a few others that are just more timing based. We're going to be above 100, but we're going to be pretty, I'd say, pretty flattish.

但我們認為今年有幾件事情，F-18，我們有一些 Apache 的程序，還有一些其他的程序更基於時間。我們將超過 100，但我們會很漂亮，我會說，非常平坦。

Okay, that's helpful. And for defense, does that flattish reflect as well - but looks like you've got an incremental call it, $45 million or so, $40 million to $45 million from offloading benefits in '23 relative to '22?

好的，這很有幫助。對於國防，這是否也反映了平淡的情況——但看起來你有一個增量調用它，4500 萬美元左右，4000 萬到 4500 萬美元來自 23 年相對於 22 年的卸載收益？

Yes, it's going to be -- it won't be that high. It's going to be -- we came in, I don't want to come and break down the number there, but we're probably going to get tailwind of say, 30 from the offload to maybe 35% because it came in, in pretty good shape. But again, these offloads are also helping with some of the timing on these programs.

是的，它會——它不會那麼高。它將是——我們進來了，我不想來分解那裡的數字，但我們可能會順風說，從卸載中 30% 到 35%，因為它進來了，在身材不錯。但同樣，這些卸載也有助於這些程序的一些時間安排。

So it's definitely going to help us. We're going to certainly hold serve, as they say, and going into '24 because you have to understand, when we're moving cards for the Patriot and for other things. I mean, these have a long tail as far as getting everything over to Tulsa, as I mentioned earlier, in some of these programs at Raytheon.

所以它肯定會幫助我們。正如他們所說，我們肯定會保持發球，並進入 24 年，因為你必須明白，當我們為愛國者和其他事情移動卡片時。我的意思是，正如我之前提到的，在雷神公司的一些項目中，這些項目在將一切都轉移到塔爾薩方面有很長的路要走。

But we should continue to make progress. And I mentioned in my remarks that primes are eager for cost reduction, and they're certainly challenging and questioning their in-house operations. So that's helping us.

但我們應該繼續取得進展。我在我的評論中提到，primes 渴望降低成本，他們肯定會挑戰和質疑他們的內部運營。所以這對我們有幫助。

And if I could just 1 -- yes just I appreciate that. Just 1 final question on the defense outlook, I mean budgets were up sort of 10% in fiscal '23. There's obviously some uncertainty around fiscal '24, but we're seeing higher international spend. Do you -- you've called out timing on a couple of programs, maybe those help in the latter part of the year?

如果我只能 1 -- 是的，我很感激。關於國防前景的最後一個問題，我的意思是預算在 23 財年增長了 10%。 24 財年顯然存在一些不確定性，但我們看到國際支出增加。您是否 - 您已經為幾個項目安排了時間，也許這些項目在今年下半年有所幫助？

But do we see then a sort of a material inflection positively in defense into '24 or how do you think about this longer term? Because the flattish sales, I can appreciate because it's consistent with what a lot of other companies have talked about. But I'm just curious, Steve, your view on when we start to see the funding catch up or get better reflected in your results?

但是，我們是否會在防禦方面看到一種積極的物質轉折進入 24 年，或者您如何看待這個長期趨勢？因為銷量平平，我很欣賞，因為它與許多其他公司所談論的一致。但我只是好奇，史蒂夫，你對我們什麼時候開始看到資金趕上或更好地反映在你的結果中有什麼看法？

Yes, we feel much better about 2024, Ken okay. We -- certainly with what we're seeing I mean, maybe now, but we don't disclose that our Electronic Systems, Defense business had a great order quarter in Q4, which was sequentially. I'll just give you that number it probably at least over 40%, 45% versus Q3. So orders are coming in. I mean obviously, there's timing on deliveries is it going to be 2023, 2024. We feel good about 2024 as far as being able to move forward again.

是的，我們對 2024 年感覺好多了，肯，好的。我們——當然是我們所看到的，我的意思是，也許現在，但我們沒有透露我們的電子系統、國防業務在第四季度有一個很好的訂單季度，這是連續的。我會給你這個數字，與第三季度相比，它可能至少超過 40%、45%。所以訂單進來了。我的意思是，很明顯，交貨時間是 2023 年、2024 年。我們對 2024 年感覺良好，能夠再次向前邁進。

Yes and 1 other comment, too Ken, is just as you -- I think as we've seen everything turning from order to delivery to shipments is pushing out slightly as you come through the last couple of years. So it's -- that's why we've got -- we're looking at this next 12 months and saying this will hold serve and then start to see it pick up.

是的，還有其他 1 條評論，肯，就像你一樣——我認為我們已經看到，隨著你過去幾年的經歷，從訂單到交付再到發貨的一切都在稍微推遲。所以它 - 這就是為什麼我們 - 我們正在研究接下來的 12 個月，並說這將保持服務，然後開始看到它回升。

Yes Ken, we're also at the mercy a little bit of other suppliers for these primes that are struggling or have the other issues right other issues where it's certainly a little bit of a challenge for us because, I mean, we're pretty much ready to deliver, but there's other things happening with some of these programs, either those hiring challenges at some of the primes or there's other suppliers that are late. So we're feeling a little bit of that to this year. We're hoping for a much better activity next year.

是的，肯，我們也受到其他一些供應商的擺佈，這些供應商正在苦苦掙扎，或者有其他問題解決其他問題，這對我們來說肯定是一個挑戰，因為，我的意思是，我們很漂亮已經準備好交付，但其中一些計劃還發生了其他事情，要么是一些主要的招聘挑戰，要么是其他供應商遲到了。所以我們對今年有一點感覺。我們希望明年有更好的活動。

Our next question will come from the line of Mike Crawford from B. Riley.

我們的下一個問題將來自 B. Riley 的 Mike Crawford。

I think would you agree that supply chain constraints are easing. And if so, how much of an opportunity is there to bring in some working capital to take that back into cash?

我想你會同意供應鏈限制正在放鬆嗎？如果是這樣，有多少機會引入一些營運資金以將其變回現金？

Mike, good question, I think that it is easing. I think it's a little bit of sort of down the middle on commercial aero because 1 of the reasons where we've been winning wars is that we have titanium sheets and we have other things that maybe some of the suppliers don't were able to kind of come in and help. So I would say that second half of the year we see that in a better place, easing, and we're certainly interested in getting our turns up.

邁克，好問題，我認為它正在放鬆。我認為這在商業航空方面有點中庸，因為我們贏得戰爭的原因之一是我們有鈦板，我們還有其他一些供應商可能無法做到的東西進來幫忙。所以我想說，今年下半年我們會看到一個更好的地方，放鬆，我們當然有興趣讓我們出現。

Okay. And then are there any other specific programs that you're really aiming to the -- gain business via offloading from primes or you just don't want to get into that level of detail on this call?

好的。然後是否有任何其他特定程序是您真正旨在通過從 primes 卸載來獲得業務，或者您只是不想在這次電話會議上深入了解那種程度的細節？

I probably don't know I mean, just because I want to be sensitive to the customer and all the customers. So, but I will just tell you that especially in the card area, I mean -- and we put that note about Appleton being over $100 million now, which is a 70,000 square foot plant, which is -- and that's all cards.

我可能不知道我的意思，只是因為我想對客戶和所有客戶保持敏感。所以，但我只想告訴你，特別是在卡片領域，我的意思是 - 我們把關於阿普爾頓現在超過 1 億美元的說明，這是一個 70,000 平方英尺的工廠，這是 - 這就是所有卡片。

And that's all people coming and saying, hey, we want you to do it here as well as Tulsa now is on to the next phase, and we're expecting really good things. And again, I mentioned -- I'll talk a little bit about 1 program just because I mentioned earlier is that taking something out of a major operation, test equipment, those types of things, I mean - these things need to take time they should. So that's -- we're more bullish in the 2024 period.

所有的人都過來說，嘿，我們希望你在這裡做，塔爾薩現在正進入下一階段，我們期待著非常好的事情。再一次，我提到——我會稍微談談 1 個程序，因為我之前提到的是從主要操作、測試設備中取出一些東西，這些類型的東西，我的意思是——這些東西需要時間，他們應該。這就是 - 我們在 2024 年期間更加樂觀。

Okay. And then last question might be more for someone. But what if any, changes or opportunities are you seeing on the M&A fund, where you're looking for more of these niche suppliers in protected industry?

好的。然後最後一個問題可能更適合某人。但是，如果您在併購基金中看到任何變化或機會，您會在其中尋找更多受保護行業的利基供應商嗎？

Yes, no, I appreciate the question, and that's why I kind of put in my remarks as well. So look, we were -- as I mentioned, we were more forthcoming and rightly so at our Investor Day in December. And hopefully, everybody was pleased with -- all 4 of our operations because we've really, I think, done a nice job at all of them.

是的，不，我很欣賞這個問題，這就是為什麼我也要發表評論的原因。所以看，我們 - 正如我提到的那樣，我們在 12 月的投資者日更加坦率而且正確。希望每個人都對我們的所有 4 項業務感到滿意，因為我認為我們確實在所有這些方面都做得很好。

And I would just say that we're active. The model works for us. It does accelerate our margins, does lots of things for us. And that's kind of where we're heading right now, Mike, at least for the next year or 2, the same kind of profile acquisitions you seen in the past.

我只想說我們很活躍。該模型適用於我們。它確實加速了我們的利潤，為我們做了很多事情。邁克，這就是我們現在正朝著的方向，至少在接下來的一兩年內，與您過去看到的相同類型的個人資料收購。

(Operator Instructions) Our next question comes from the line of Pete Osterland from Truist.

（操作員說明）我們的下一個問題來自 Truist 的 Pete Osterland。

So first, we've heard a few different things across the supply chain about expected build rates this year, particularly for the 737 MAX. So I just wanted to know what build rate are you currently producing at on the MAX? And are you actively planning for production rate increases this year? Is that something that's reflected in your sales guidance or would that represent upside if it were going to materialize?

因此，首先，我們在整個供應鏈中聽到了一些關於今年預期建造率的不同說法，尤其是 737 MAX。所以我只想知道您目前在 MAX 上的生產速度是多少？您是否積極計劃今年提高生產率？這是否反映在您的銷售指導中，或者如果它要實現，是否代表上行空間？

Yes, so look, we're -- we've been down this road a lot whole industry, right? So we're taking only at his word at 31 a month, at least for this year, okay? We hope that that's going to go up. And certainly, we do not have that fully baked in. I will tell you that. So that is some upside for us. I will tell you a bright spot would be the Tier 1 Spirit, because they're obviously ahead of the chain.

是的，所以看，我們 - 我們整個行業都在這條路上走了很多，對吧？所以我們只接受他的話，每月 31 天，至少今年是這樣，好嗎？我們希望這會上升。當然，我們還沒有完全融入其中。我會告訴你的。所以這對我們來說是一些好處。我會告訴你一個亮點是 1 階精神，因為他們顯然領先於連鎖店。

So Boeing is trying to ramp up and we're going to feel that from Spirit ahead of time. And again, we've been more modest with our build rates this year just because we want to make sure that we're not too far out over our skis as they say, because we're concerned about other supplier deliveries, concerned about them able to hire enough mechanics and people to get the work done. So I would say if things go -- if things break the right way, we're going to have a better year.

因此，波音公司正在努力提升，我們將提前從 Spirit 那裡感受到這一點。再說一次，我們今年的製造率更加適度，只是因為我們想確保我們的滑雪板不會像他們說的那樣太過火，因為我們擔心其他供應商的交付，擔心他們能夠僱用足夠的機械師和人員來完成工作。所以我想說，如果一切順利——如果事情以正確的方式發生，我們將有更好的一年。

That's very helpful. And then just as a follow-up. Well, I know you didn't give specific guidance on this. I was wondering if you could just calibrate us on margins for the upcoming year. So just any color you could give on pricing versus cost inflation. Do you expect that to be a headwind this year? And just in general, should we be thinking about seeing margins up this year as sales grow and you start to see the benefits of your restructuring or just how are you thinking about that?

這很有幫助。然後作為後續行動。嗯，我知道你沒有就此給出具體指導。我想知道您是否可以為來年調整我們的利潤率。因此，您可以就定價與成本通脹給出任何顏色。你認為這會成為今年的逆風嗎？總的來說，我們是否應該考慮隨著銷售額的增長而看到今年的利潤率上升，並且您開始看到重組的好處，或者您是如何考慮的？

Yes no thanks, Pete. So yes, I think as you look at this year and you see where our jump-off point is, yes, we would say and we sort of signaled this in some of the dialogue at the Investor Day, we do view it sort of a transition year on margins. I mean we're those same pressures are still there. So we don't think there's going to be incremental headwind. We think we're going to just continue to work through it.

是的，不，謝謝，皮特。所以，是的，我認為當你回顧今年時，你會看到我們的起點在哪裡，是的，我們會說，我們在投資者日的一些對話中表示了這一點，我們確實認為這是一個邊緣過渡年。我的意思是我們仍然存在相同的壓力。因此，我們認為不會出現逆風。我們認為我們將繼續努力解決它。

And again, hopefully, we will find our way to some type of improvements as we go through the first half of the year, especially with where we were last year. And then the restructuring benefits in the back half of the year as we finish up, and that's where we'll start to get the more significant lift just on the base business.

再一次，希望我們能在今年上半年找到某種改進的方法，尤其是在去年的情況下。然後在我們完成後的下半年重組收益，這就是我們將開始在基礎業務上獲得更顯著提升的地方。

When the growth hits to, that's always going to be another element to it. But as you've sort of heard in the forecast we have, it's not a growth-driven year. It's going to be more about what we can do with the business, what we can do with the cost structure and the repositioning to be part of that.

當增長達到目標時，這總是會成為它的另一個因素。但正如您在我們的預測中聽到的那樣，今年不是增長驅動的一年。這將更多地是關於我們可以對業務做些什麼，我們可以對成本結構做些什麼以及重新定位成為其中的一部分。

Yes, let me just jump in here. So look, as I mentioned in the investor call, we don't take plant consolidation lightly here. But I would tell you the 2 factories that we're going to close didn't really help us in 2022, okay, from a margin perspective, okay I'll leave it there. You can interpret that. But the second point is that once we consolidate those into low-cost centers, we take all the expense out, that's going to, I think, delivered very nicely in the mid-term for our margin story, Pete.

是的，讓我跳進去。所以看，正如我在投資者電話會議中提到的那樣，我們不會在這裡掉以輕心地進行工廠整合。但我會告訴你，我們將要關閉的 2 家工廠在 2022 年並沒有真正幫助我們，好吧，從利潤率的角度來看，好吧，我會把它留在那裡。你可以這樣解釋。但第二點是，一旦我們將這些整合到低成本中心，我們就會把所有費用都拿出來，我認為，這將在中期為我們的利潤率故事提供很好的服務，Pete。

Our next question will come from the line of Ken Herbert from RBC Capital Markets.

我們的下一個問題將來自 RBC Capital Markets 的 Ken Herbert。

Steve, I just wanted to follow up on the -- on your last comments. On the restructuring, how much of the work at Monrovia and Berryville, have you already transitioned and how much is left to do there? And then how much of a working capital headwind is that this year's I'm sure you've built safety stock and inventory and provisions in anticipation of the move?

史蒂夫，我只是想跟進你最後的評論。關於重組，蒙羅維亞和貝里維爾的工作有多少，你們已經過渡了，還有多少工作要做？然後，今年的營運資金逆風有多大？我敢肯定，您已經建立了安全庫存、庫存和準備金來應對這一舉措？

Yes, okay couple things. As I'll let Chris handle the second part of that. Let me just handle the first part. Look, we've had, I think, excellent -- the best you -- can expect announcements to the teams, okay? And happy to say that for the most part, we still have teams working hard in those facilities. We are actively either engage with customers as far as I mentioned earlier, we're pruning some things that really just aren't good for us and for shareholders going in the long-term.

是的，好的幾件事。因為我會讓 Chris 處理第二部分。讓我來處理第一部分。看，我認為我們已經擁有了非常出色的——最好的你——可以期待團隊的公告，好嗎？很高興地說，在大多數情況下，我們仍然有團隊在這些設施中努力工作。正如我之前提到的，我們正在積極地與客戶接觸，我們正在修剪一些對我們和股東長期來說真的不利的事情。

So we're actively doing that. And we're also putting plans in place. And as we go forward building buffer for -- to be effective and to have this thing sort of [anoculus] 35.34 to customer experience with the Ducommun. So we are active. We pretty much -- we're probably going to be going through the first quarter pretty much tight with the group and then we're going to start moving out on moving things and accelerating. So, but as I mentioned earlier, I'm happy how we started off again.

所以我們正在積極地這樣做。我們也在製定計劃。隨著我們繼續建立緩衝 - 有效並讓這種東西有點 [anoculus] 35.34 到 Ducommun 的客戶體驗。所以我們很活躍。我們幾乎 - 我們可能會與團隊一起度過第一季度，然後我們將開始移動並加速。所以，但正如我之前提到的，我很高興我們重新開始。

These things are always tricky, and we're off to a very good start. And we feel we have the plans and we have the right practice for keeping people on the team and for all the things you need to do to be effective to move the work in place and Guaymas as well is, as we mentioned in the -- I think it was in the investor call, we have another building down there now. So we're in a very good shape with our floor space and workforce to take the majority of this work in Mexico, not everything, but a majority of it.

這些事情總是很棘手，我們有了一個很好的開始。我們覺得我們有計劃，我們有正確的做法，可以讓人們留在團隊中，以及你需要做的所有事情，以便有效地將工作轉移到位，瓜伊馬斯也是如此，正如我們在 -我想是在投資者電話會議上，我們現在在那裡又建了一座大樓。因此，我們的佔地面積和勞動力狀況非常好，可以在墨西哥完成大部分工作，不是全部，而是大部分。

Yes and just on the inventory or the investment, Ken, I would say modest investment here in the first half of the year, Steve mentioned a little bit of safety stock. I mean there's an element of that, but we do view that sort of being first half of the year, transitions are happening, working it down. And so by the time you get to the end of the year, it's nominal and sort of what the full year view would look like, but there could be a little bit of investment here in the first half of the year.

是的，就庫存或投資而言，肯，我會說今年上半年這裡的適度投資，史蒂夫提到了一點安全庫存。我的意思是其中有一個因素，但我們確實認為這是今年上半年，過渡正在發生，正在努力。因此，到年底時，它是名義上的，有點像全年的觀點，但今年上半年可能會有一些投資。

Okay, helpful. And if I could, 1 other quick follow-up Airbus today announced some aggressive or planned aggressive rate moves on their wide-body portfolio with maybe the rate increases on the A320 family pushed out to the right a bit. Can you level set us on where you are with Airbus, maybe as a percent of your aerospace business and opportunities with their supply chain disruption and issues to either take share? And how much will you participate in the accelerated production on the wide-body aircraft, the 330 and the 350?

好的，有幫助。如果可以的話，另外 1 個快速跟進空中客車公司今天宣布對其寬體機產品組合採取一些激進或計劃中的激進利率舉措，可能 A320 系列的利率上漲會稍微向右推。你能否讓我們了解你在空中客車公司的位置，也許是你的航空航天業務的百分比以及他們的供應鏈中斷和分享問題的機會？寬體機330、350的加速生產參與度有多少？

Ken, [I did see that] 37.34 briefly -- I didn't read it, and I just briefly saw some of the things. So first of all, just as a highlight, we're in fairly good shape on the A330. So we were not that optimistic about a couple of years ago. So we see that moving in the right direction. That's something that we actually were players on. I won't get into exactly what the percentage is, but we're going to -- that's going to benefit us the A330.

肯，[我確實看到] 37.34 簡要地 -- 我沒有讀它，我只是簡要地看到了一些東西。所以首先，作為一個亮點，我們在 A330 上的狀態相當不錯。所以我們對幾年前並不那麼樂觀。所以我們看到它朝著正確的方向前進。那是我們實際上是玩家的東西。我不會詳細說明這個百分比是多少，但我們會——這將使我們的 A330 受益。

We're in the middle of trying and as you know, these things take time to get a position on the A350, which is something that we're engaged in actively so more to come there. We like to see those increases. I think the -- the year-over-year number that I said about the A320 and Airbus was pretty dramatic. We think that that's going to continue.

我們正在嘗試，正如你所知，這些事情需要時間才能在 A350 上佔據一席之地，這是我們正在積極參與的事情，因此會有更多人來到那裡。我們希望看到這些增長。我認為 - 我所說的關於 A320 和空客的同比數字非常引人注目。我們認為這將繼續下去。

As I mentioned in my Investor Day back in December, you have to always be a little bit careful with Airbus, they have a lot of mouse and feed and -- but they need the parts to produce. And we're pretty much -- even though we might be slightly off now, we've pretty much been 100% on time in Airbus for over 3 years with a little -- maybe 1 or 2 misses here or there.

正如我在去年 12 月的投資者日中提到的那樣，你必須始終對空中客車保持謹慎，他們有很多鼠標和飼料 - 但他們需要生產零件。而且我們幾乎 - 即使我們現在可能略有偏離，但我們在空中客車 3 年多來幾乎 100% 準時 - 可能在這里或那裡有 1 或 2 次失誤。

So we're in great shape with Airbus, not really ready to go fully on what the disclosure is on the amount of business, but it continues to grow. And we're hopeful, and we feel good -- if they're running hard, we're going to feel share gain. That's what we want.

因此，我們與空中客車公司的關係很好，還沒有真正準備好全面披露所披露的業務量，但它仍在繼續增長。我們充滿希望，我們感覺很好——如果他們努力工作，我們就會感受到份額的增加。這就是我們想要的。

And I'm not showing any further questions in the queue at this time. So I'll pass it back to Steve Oswald for any closing remarks.

我現在不會在隊列中顯示任何其他問題。所以我會把它傳回給 Steve Oswald 聽取任何結束語。

Okay, thank you. And okay, thank you again, everyone, for joining us. It always a very good Q&A as well as hopefully you felt the script what was helpful. We have a lot going on in the company. We're going to -- I think if things go our way, we're going to hopefully do a little bit better than our revenue guidance, but we always try to be thoughtful and we want to be as transparent as we can on these calls and help investors and help our analyst partners.

好的謝謝。好的，再次感謝大家加入我們。它始終是一個非常好的問答，希望您覺得腳本對您有幫助。我們公司有很多事情要做。我們將 - 我認為如果事情按我們的方式進行，我們希望能比我們的收入指導做得更好一點，但我們總是盡量考慮周到，我們希望在這些方面盡可能透明打電話幫助投資者，幫助我們的分析師合作夥伴。

So, but we feel good -- very good about 2024. We're closing these factories for a reason. It's all going to benefit for the mid to long-term, especially in the margin area and other things. We're excited about our Guaymas operation going to the next level, which is a big part of our future. And we're active with acquisitions and we're feeling good. So again, we appreciate your support, and thank you again for listening.

所以，但我們感覺很好——關於 2024 年非常好。我們關閉這些工廠是有原因的。從中長期來看，這一切都將受益，尤其是在利潤率領域和其他方面。我們很高興我們的 Guaymas 業務更上一層樓，這是我們未來的重要組成部分。我們積極進行收購，我們感覺很好。再次感謝您的支持，再次感謝您的聆聽。

This concludes today's conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。大家，祝你有美好的一天。