Ducommun Inc (DCO) 2023 Q4 法說會逐字稿

Good day, and thank you for waiting. Welcome to the Q4 2023 Ducommun earnings conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session to ask a question. During the session, you will need to press star one on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star one again.

美好的一天，感謝您的等待。歡迎參加 Ducommun 2023 年第四季財報電話會議。此時，所有參與者都處於只聽模式。演講者演講結束後，將進行問答環節。在會議期間，您需要按電話上的星號一。然後您將聽到一條自動訊息，建議您舉手。若要撤回您的問題，請再次按星號一。

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Sumant Mukherjee, Senior Vice President and Chief Financial Officer. Please go ahead.

請注意，今天的會議正在錄製中。現在我想將會議交給高級副總裁兼財務長蘇曼特·穆克吉 (Sumant Mukherjee) 發言。請繼續。

Thank you, and welcome to Ducommun's 2023 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 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. 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 the future operating results are based on the Company's current business, which is subject to change Particular risks facing Ducommun include, among others, the cyclicality of our end-use markets, the level of U.S. government defense spending, our customers may experience delays in the launch and certification of new products, timing of orders from our customers, legal and regulatory risks, the cost of expansion and acquisitions, competition, economic and geopolitical developments, including supply chain issues and rising are high interest rates. The ability to attract and retain key personnel and avoid labor disruptions, the ability to adequately protect and enforce intellectual property rights, pandemics, disasters, natural or otherwise, and risk of cybersecurity attacks. These risks and others will be described in our annual report on Form 10-K once it is filed with the SEC and our forward-looking statements are subject to those risks.

謝謝，歡迎參加 Ducommun 2023 年第四季電話會議。今天與我在一起的是董事長、總裁兼執行長史蒂夫奧斯瓦爾德 (Steve Oswald)。我將討論我們在今天某些非歷史事實的陳述之後準備好的發言或問答環節中可能做出的有關未來事件、預測或業績的任何前瞻性陳述的某些限制，包括有關未來的任何陳述根據1995 年《私人證券訴訟改革法案》，市場狀況、經營績效和財務預測屬於前瞻性陳述，因此具有前瞻性。這些前瞻性陳述受到風險、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明示或暗示的未來結果有重大差異。儘管我們認為前瞻性聲明中反映的預期是合理的，但我們不能保證此類預期將被證明是正確的。此外，對未來營運績效的估計是基於公司目前的業務，該業務可能會發生變化。Ducommun 面臨的特定風險包括我們的最終用途市場的週期性、美國政府國防支出水平、我們的客戶等。新產品的推出和認證、客戶訂單時間、法律和監管風險、擴張和收購成本、競爭、經濟和地緣政治發展（包括供應鏈問題）和高利率上升等方面可能會遇到延遲。吸引和留住關鍵人員並避免勞動力中斷的能力，充分保護和執行智慧財產權、流行病、自然災害或其他災害以及網路安全攻擊風險的能力。這些風險和其他風險將在我們向 SEC 提交後的 10-K 表格年度報告中進行描述，並且我們的前瞻性陳述受到這些風險的影響。

Statements made during the 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. 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 this year, we expect to file our 2023 form 10-K on Thursday, February 22nd, 2020, for the additional time is to complete the documentation of our internal controls and preparation of the Form 10-K for filing in the 2023 form 10-K, we expect to report a material weakness in our internal controls over financial reporting related to our revenue recognition process. This material weakness resulted in immaterial adjustments to net revenues and contract assets as of and for the quarterly period ending December 31st, 2023, we do not expect the material weakness to result in a restatement or change to the reported financial statements, we will make the necessary changes to the design and operating effectiveness of these specific revenue recognition. Internal controls during 2024.

電話會議期間發表的聲明僅截至當時的情況，我們不打算更新本簡報中的任何聲明，除非監管機構要求。此電話會議還包括非公認會計準則財務指標。請參閱我們向 SEC 提交的文件，以了解今年本次電話會議中提到的 GAAP 與非 GAAP 措施的調節，我們預計於 2020 年 2 月 22 日星期四提交 2023 年 10-K 表格，額外時間為在完成我們的內部控製文件並準備10-K 表格以在2023 年10-K 表格中提交後，我們預計將報告與我們的收入確認流程相關的財務報告內部控制的重大缺陷。這一重大缺陷導致截至 2023 年 12 月 31 日的季度淨收入和合約資產發生非重大調整，我們預計該重大缺陷不會導致對所報告的財務報表進行重述或更改，我們將對這些特定收入確認的設計和營運有效性進行必要的改變。2024 年的內部控制。

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

我現在想將電話轉給史蒂夫奧斯瓦爾德（Steve Oswald），以審查營運結果。史蒂夫？

Okay. Thank you, Samantha, and thanks, everyone, for joining us today for our fourth quarter conference call today. And as usual, I'll give an update on the current situation of the company, after which Sumant will review our financial results in detail.

好的。謝謝薩曼莎，謝謝大家今天加入我們今天的第四季電話會議。和往常一樣，我將介紹公司目前的最新情況，之後 Sumant 將詳細審查我們的財務表現。

Q4 was a very good quarter as we wrapped up 2023. Revenues exceeded $190 million for the second consecutive quarter to $192.2 million, driving a full year revenue of $757 million with the last high mark set in 2020 12. Strong growth in our single-aisle commercial aircraft business helped to drive the revenue. The continued recovery in commercial aerospace once again delivered in Q4 with Boeing single aisle platform business in aggregate being up 46% year over year, along with Airbus 80 20 program showing strong growth of 73% year over year. Overall, commercial aerospace with Airbus and Boeing and others was up 18% from Q4 2022, spite Boeing's in spirits, continued challenges with Max quality issues. We are now in our 10th quarter of year-over-year revenue growth for commercial aerospace, a continued excellent sign for DCO and the industry. While our defense business is slightly down quarter with sunsetting programs such as the F-18 having an impact, the company also experienced strong demand in the Apache program as well as increases for F-35 and the Mir missile platform. The defense business was over $100 million revenue once again at $103 million of revenue for the quarter. We remain optimistic about the growth ahead as we go through a tiny transition on certain programs. The ever-growing backlog in defense tells the story with backlog, up $70 million from last year and $33 million from Q3 2023. Defense backlog now stands at over $0.5 billion at $527.1 million. And other real bright spot in Q4 was gross margins of 21.7% for the fourth for Q4, up four up 120 basis points year over year from 20.5% as we began realizing benefits from our strategic pricing initiatives, productivity improvements and some initial restructuring savings. We are now also in the final stages of operation at our variable Arkansas and Monrovia, California performance centers are targeting a full shutdown by June 30th, final approval stage with RTX for the Tomahawk harnesses going to Mexico. The last product still being produced at various of that variable is close and we continue to have a full effort with BABCS. and B., a defense on the MAX boilers and Apache tail rotors, respectively, working with them on approval and building buffer due to the low level of production at both sites. We do have some headwinds, but this is temporary and will clear after the closures for adjusted operating margin in Q4, the team delivered 8.3% compared to 8.1% in Q4 2022 a nice result while investing some of the gross margin improvement after a few lean years during COVID and the ramp up of commercial aerospace, GAAP diluted EPS was $0.34 a share in Q4 2023 versus $0.65 a share for Q4 2022. And with the adjustments, diluted EPS was a solid $0.7 a share compared to diluted EPS of $0.85 in the prior year. Some key drivers for the lower GAAP diluted EPS include higher interest expense due to higher interest rates, higher inventory purchase accounting adjustments and higher SG&A expenses as we invested in the business to position it for future.

隨著 2023 年的結束，第四季是一個非常好的季度。營收連續第二季超過 1.9 億美元，達到 1.922 億美元，帶動全年營收達到 7.57 億美元，上一個高點是在 2020 年 12 創下的。我們的單通道商用飛機業務的強勁成長有助於推動營收。第四季商業航空領域再次呈現持續復甦態勢，波音單通道平台業務總量較去年同期成長46%，空中巴士80 20專案較去年同期強勁成長73%。總體而言，儘管波音公司精神飽滿，但 Max 品質問題繼續帶來挑戰，空中巴士、波音等公司的商業航空航太業務較 2022 年第四季度增長了 18%。目前，我們的商業航空航太收入已連續第十個季度實現同比增長，這對 DCO 和整個行業來說是一個持續的良好跡象。雖然我們的國防業務因 F-18 等項目的退出而略有下降，但該公司也經歷了阿帕奇項目的強勁需求以及 F-35 和和平號導彈平台的增長。國防業務本季營收再次超過 1 億美元，達 1.03 億美元。隨著我們在某些​​項目上經歷微小的轉變，我們對未來的成長保持樂觀。國防領域不斷增加的積壓訂單說明了這個問題，積壓訂單比去年增加了 7,000 萬美元，比 2023 年第三季增加了 3,300 萬美元。目前，國防積壓訂單已超過 5 億美元，達到 5.271 億美元。第四季的其他真正亮點是第四季毛利率為 21.7%，比去年同期的 20.5% 成長了 120 個基點，因為我們開始從策略定價措施、生產力提高和一些初步重組節省中獲益。我們在阿肯色州和加利福尼亞州蒙羅維亞的可變性能中心現在也處於運營的最後階段，目標是在6 月30 日之前完全關閉，這是RTX 對運往墨西哥的戰斧安全帶進行最終批准的階段。最後一個仍在以各種變數生產的產品已經接近尾聲，我們將繼續與 BABCS 全力合作。 B. 和 B. 分別負責 MAX 鍋爐和阿帕奇尾槳的防禦，由於兩個地點的生產水平較低，與他們一起進行審批和建立緩衝區。我們確實遇到了一些阻力，但這是暫時的，並且會在第四季度調整後的營業利潤率關閉後消失，該團隊的業績為8.3%，而2022 年第四季度為8.1%，這是一個不錯的結果，同時在經過幾次精益調整後投資了一些毛利率的改善在新冠肺炎疫情和商業航空航天崛起期間，2023 年第四季度按GAAP 計算的攤薄後每股收益為0.34 美元，而2022年第四季為每股0.65 美元。經過調整後，稀釋後每股收益為 0.7 美元，而上一年稀釋後每股收益為 0.85 美元。GAAP 稀釋後每股收益較低的一些關鍵驅動因素包括利率上升導致的利息支出增加、庫存採購會計調整增加以及我們投資該業務以適應未來發展時增加的銷售及一般行政費用 (SG&A)。

The total Company backlog performance increased decreased both sequentially and compared to the prior year. Total Company backlog ended 2023 at almost $994 million, increasing over $30 million, both sequentially and compared to the prior year.

本公司未完成訂單總額業績較上年年月年比均有所增加。截至 2023 年，公司未完成訂單總額接近 9.94 億美元，季比和前一年相比均增加了 3,000 萬美元以上。

Defense backlog, as mentioned earlier, also increased $70 million compared to the prior year to the end at direct at a record of $527 million. The strong defense backlog reaffirms the common defense business remains in good shape with more positive news to come. The commercial aerospace backlog, however, decreased slightly year over year, primarily due to industry issues with single-aisle production rates, specifically the MAX issues mentioned earlier with BA and spirit, but still ended Q4 2023 at a solid $429 million for offloading from the French fries. The work continues. We are expecting roughly $90 million for the full year 2024 as committed to mainly in our circuit card business for RTX in new areas such as radar for the SPY. six. As communicated, the long-term run rate of these defense programs already commercialized or in development for offloading will be over $125 million by 2025. Once the transition work is completed in Q4, our team delivered another good quarter, managing the supply chain as evidenced by positive revenue growth along with significant gross margin expansion compared to a year ago.

如前所述，截至年底，國防積壓訂單也比前一年增加了 7,000 萬美元，達到創紀錄的 5.27 億美元。強勁的國防積壓訂單再次證明共同國防業務仍保持良好狀態，並將有更多正面消息傳來。然而，商業航空航天積壓訂單同比略有下降，主要是由於單通道生產率的行業問題，特別是前面提到的 BA 和酒精的 MAX 問題，但截至 2023 年第四季度，從炸薯條。工作仍在繼續。我們預計 2024 年全年營收約為 9,000 萬美元，主要致力於 RTX 的電路卡業務以及 SPY 雷達等新領域。六。據通報，到 2025 年，這些已經商業化或正在開發的卸載國防項目的長期運作費用將超過 1.25 億美元。一旦第四季度的過渡工作完成，我們的團隊又交付了一個良好的季度業績，管理供應鏈，收入的積極增長以及與一年前相比毛利率的大幅增長就證明了這一點。

Another great example of productivity improvements and people is the revenue for our employee number, which granted as a high-level number, but then increase significantly by 16% in 2023 versus 2022.

生產力和人員改進的另一個很好的例子是我們員工人數的收入，這是一個高水準的數字，但在 2023 年與 2022 年相比顯著增加了 16%。

Does a terrific job everyone at the Company. 2023 record revenues of $757 million was a solid 6.2% growth over 2022 and in line with the guidance of 6% to 6.5%. We provided to you during the Q3 call. We were obviously happy with this record number last set in 2012, especially in light of the seven 37 MAX headwinds with BA and spirit that created a more modest pace than had been expected and single aisle production rate and 2023 for revenue guidance for 2024, we believe that with the uncertainty surrounding BA Spirit and the FAA at this point on the MAX, the best approaches to guide to mid single digits and look to further updates on future earnings calls the commercial aerospace recovery will continue to expand along with growth in defense, which is backed by our record backlog. We continue to be active with acquisitions as in 20, our acquisition last April. I believe this is another catalyst to drive us possibly higher in year ahead.

公司每個人都做得非常出色。 2023 年營收創紀錄達到 7.57 億美元，比 2022 年穩定成長 6.2%，符合 6% 至 6.5% 的指導。我們在第三季電話會議期間向您提供了資訊。我們顯然對 2012 年創下的這一紀錄數字感到滿意，特別是考慮到 BA 和 Spirit 的 7 架 37 MAX 逆風創造了比預期更溫和的速度，以及單通道生產率和 2023 年的 2024 年收入指導，我們相信，由於目前圍繞MAX 的BA Spirit 和FAA 存在不確定性，引導至中個位數的最佳方法並期待未來收益電話會議的進一步更新，商業航空航天復蘇將隨著國防的增長而繼續擴大，這得到了我們創紀錄的積壓訂單的支持。我們繼續積極進行收購，就像去年 4 月的 20 次收購一樣。我相信這是推動我們在未來一年走高的另一個催化劑。

Now let me provide some additional color on our markets, products and programs. Beginning with our military and space sector. We experienced our second consecutive quarter of revenues of $100 million at $102.8 million compared to $108.4 million in Q4 of 2022, while lower, we saw some bright spots, including strong demand for the Apache tail rotor blades with over 380% year over year growth and increased demand for other military and space products, other military, rotary wing platforms, F-35 and Amir missile as well. The fourth quarter military and space revenue represented 50% -- 53% of Ducommun's revenue in the period, down from 58% last year. And this trend will continue to reflect more balance with commercial aerospace, which we like We also ended the fourth quarter with backlog in excess of $500 million to $527 million, an increase of $70 million year over year and represents 53% of the common total.

現在讓我對我們的市場、產品和計劃提供一些額外的資訊。從我們的軍事和太空部門開始。我們連續第二季的營收達到1.028 億美元，達到1.028 億美元，而2022 年第四季的營收為1.084 億美元，雖然有所下降，但我們看到了一些亮點，包括對阿帕奇尾槳葉片的強勁需求，年增超過380%，以及對其他軍事和航太產品、其他軍事、旋翼平台、F-35 和阿米爾飛彈的需求增加。第四季軍事和航太收入佔 Ducommun 同期收入的 50% 至 53%，低於去年的 58%。這一趨勢將繼續反映與商業航空航天的更多平衡，我們喜歡這一點。第四季結束時，積壓訂單超過 5 億美元至 5.27 億美元，年增 7,000 萬美元，佔共同總額的 53%。

Yes.

是的。

Within our commercial aerospace operations, fourth quarter revenue saw double-digit growth once again, increasing 18% year over year to $80 million driven mainly by build rate increases on large aircraft platforms, including the seven 37 MAX and a three to 20 platforms and twin aisle commercial aircraft platforms, commercial rotary wing aircraft platforms and regional and business jets. As many of you are aware, the FAA announced in January that will increase its oversight of Boeing as well as we probably get approval for production rate increases or additional production lines for the seven 37 MAX until it is satisfied. That Ball is in full compliance with required quality control procedures. This will likely cap the production of the seven 37 MAX, but we need to see how things go in Q1 of 2024 and the FAA going forward plan. We do, however, expect the long-term trend to remain positive once the issues are fully addressed.

在我們的商業航空航太業務中，第四季營收再次實現兩位數成長，年增18%，達到8,000 萬美元，這主要是由於大型飛機平台的建造速度增加，包括七架37 MAX 和三到20 架平台以及雙飛機過道商用飛機平台、商用旋翼飛機平台以及支線和公務機。正如你們許多人所知，美國聯邦航空局 (FAA) 在 1 月宣布將加強對波音公司的監管，我們可能會獲得提高生產力或增加 7 架 37 MAX 生產線的批准，直到我們滿意為止。該球完全符合所需的品質控管程序。這可能會限制 7 架 37 MAX 的生產，但我們需要看看 2024 年第一季的情況以及 FAA 的未來計劃。然而，我們確實預計，一旦問題得到充分解決，長期趨勢將保持積極。

The backlog within our commercial aerospace sector was $429 million at the end of the fourth quarter and while it was $21 million lower year over year and increased $7 million sequentially, a solid number given the temporary weakness in commercial aerospace.

截至第四季末，我們的商業航空航太領域的積壓訂單為4.29 億美元，雖然同比減少了2,100 萬美元，但環比增加了700 萬美元，但考慮到商業航空航天領域的暫時疲軟，這個數字相當可觀。

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

接下來，我將請蘇曼詳細檢視我們的財務表現。蘇曼？

Thank you, Steve. As a reminder, please see the Company's Q4 earnings release for a further description of information mentioned on today's call. As Steve discussed, our fourth quarter results reflect another period of good performance. We again saw a significant increase in our commercial aerospace revenues. We remain encouraged by the continued strength in domestic and global travel, which should support higher long-term demand for aircraft as we work through some of the industry issues impacting single-aisle production rates.

謝謝你，史蒂夫。提醒一下，請參閱公司第四季財報，以了解今天電話會議中提到的資訊的進一步說明。正如史蒂夫所討論的，我們第四季的業績反映了另一個良好表現時期。我們再次看到我們的商業航空收入大幅成長。我們仍然對國內和全球旅行的持續強勁感到鼓舞，在我們解決一些影響單通道生產率的行業問題時，這應該會支持對飛機的長期更高需求。

In addition, we are encouraged by the strong backlog growth in our military and space business that should help drive our revenues in that end user segment going forward.

此外，我們的軍事和航太業務積壓訂單的強勁成長令我們感到鼓舞，這將有助於推動我們在最終用戶領域的收入向前發展。

During the quarter, we also continued to make progress on our restructuring program, and I will provide some more color shortly with all this, we feel like we have entered 2024 with good momentum as will continue to drive our performance.

在本季度，我們的重組計劃也繼續取得進展，我將很快提供更多關於這一切的信息，我們感覺我們已經以良好的勢頭進入 2024 年，並將繼續推動我們的業績。

Now turning to our fourth quarter results. Revenue for the fourth quarter of 2023 was $192.2 million versus $188.3 million for the fourth quarter of 2022. The year-over-year increase reflects $12.1 million of growth across our commercial aerospace platforms, partially offset by $5.6 million of lower revenue within the military and space sector due to lower build rates on various missile platforms and military fixed-wing aircraft platforms such as the F-18, partially offset by higher build rates on military rotary wing aircraft platforms such as the Apache new common total backlog at the end of the fourth quarter was $993.6 million This includes a record backlog in our defense and end-users defense end-user segment, which grew by $33 million to a total $527 million backlog in our commercial aerospace business increased slightly during the quarter from 440 -- $423 million at the end of Q3 to $429 million at the end of Q4. 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. We posted total gross profit of $41.7 million or 21.7% of revenue for the quarter versus $38.6 million or 20.5% of revenue in the prior year period. We continue to share adjusted gross margins as we have certain non-GAAP cost of sales items in the current and prior year period relating to inventory step-up amortization on our recent acquisitions, restructuring charges and the impact of the Guaymas fire on our operations. On an adjusted basis, our gross margins were 23.2% in Q4 2023 versus 21% in Q4 2022. The improvement in gross margins was driven by favorable product mix, better pricing and improved scale in our commercial aerospace business. We continue to work through a difficult operating environment with supply chain and labor. However, through our proactive efforts, including strategic buys and our inventory investments, we have been able to avoid any significant impacts thus far on our business. In parallel, we continue to look for opportunities to run wind, our working capital investments to improve our cash flow. During the fourth quarter of 2023, we were able to reduce our inventory by $16 million sequentially compared to Q3. We also reduced our contract assets, net of contract liabilities by $15 million. Ducommun reported operating income for the fourth quarter of $8.9 million or 4.6% of revenue compared to $9.7 million or 5.1% of revenue in the prior year period. Adjusted operating income was $15.9 million or 8.3% of revenue this quarter compared to $15.2 million or 8.1% of revenue in the comparable period last year. The Company reported net income for the fourth quarter of 2023 of $5.1 million, our $0.34 per diluted share compared to net income of 81 -- $8.1 million, or $0.65 per diluted share a year ago. On an adjusted basis, the Company reported net income of $10.4 million, or $0.7 per diluted share compared to net income of $10.6 million or $0.85 in Q4 2022. The lower adjusted net income during the quarter, despite a higher level of adjusted operating income, was driven mainly by higher interest costs, partially offset by lower income tax expense. This was primarily due to the impact of Fed rate hike on short-term interest rates. I will discuss this along with our interest rate hedge, which took effect on January first, 2024 shortly.

現在轉向我們第四季的業績。2023 年第四季的營收為 1.922 億美元，而 2022 年第四季的營收為 1.883 億美元。同比增長反映了我們商業航空航天平台 1210 萬美元的增長，部分被軍事和航太領域收入下降 560 萬美元所抵消，原因是各種導彈平台和軍用固定翼飛機平台的建造率較低，例如F- 18，部分被軍用旋翼飛機平台較高的建造率所抵消，例如阿帕奇，第四季度末新的共同積壓訂單總額為9.936 億美元，其中包括我們的國防和最終用戶國防終端的創紀錄的積壓訂單 -用戶部分成長了3,300 萬美元，達到5.27 億美元，商業航空航太業務的積壓訂單在本季度略有增加，從第三季末的440 美元（4.23 億美元）增加到第四季末的4.29 億美元。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、固定價格和 24 個月或更短的預期交付日期的潛在收入。我們公佈的本季總毛利為 4,170 萬美元，佔營收的 21.7%，而去年同期為 3,860 萬美元，佔營收的 20.5%。我們繼續分享調整後的毛利率，因為我們在本年度和上一年期間有某些非公認會計原則銷售成本項目，這些項目與我們最近收購的庫存逐步攤銷、重組費用以及瓜伊馬斯火災對我們業務的影響有關。調整後，我們 2023 年第四季的毛利率為 23.2%，而 2022 年第四季為 21%。毛利率的改善得益於我們商業航空航太業務有利的產品組合、更好的定價和規模的擴大。我們繼續在供應鏈和勞動力困難的營運環境中努力工作。然而，透過我們的積極努力，包括策略性購買和庫存投資，迄今為止，我們已經能夠避免對我們的業務產生任何重大影響。同時，我們繼續尋找運行風能的機會，這是我們的營運資本投資，以改善我們的現金流。2023 年第四季度，我們的庫存比第三季度連續減少了 1,600 萬美元。我們還將扣除合約負債後的合約資產減少了 1500 萬美元。Ducommun 報告第四季營業收入為 890 萬美元，佔營收的 4.6%，而去年同期為 970 萬美元，佔營收的 5.1%。本季調整後營業收入為 1,590 萬美元，佔營收的 8.3%，去年同期為 1,520 萬美元，佔營收的 8.1%。該公司公佈 2023 年第四季淨利潤為 510 萬美元，稀釋後每股收益 0.34 美元，而一年前淨利潤為 81 - 810 萬美元，稀釋後每股收益 0.65 美元。在調整後的基礎上，公司公佈的淨利潤為 1,040 萬美元，即稀釋後每股收益 0.7 美元，而 2022 年第四季的淨利潤為 1,060 萬美元，即每股稀釋收益 0.85 美元。儘管調整後營業收入水準較高，但本季調整後淨利較低，主要是由於利息成本上升，部分被所得稅費用下降所抵銷。這主要是由於聯準會升息對短期利率的影響。我將討論這一點以及我們的利率對沖，該利率對沖將於 2024 年 1 月 1 日生效。

Now let me turn to our segment results. Our Structural Systems segment posted revenue of $85.6 million in the fourth quarter of 2023 versus $68.2 million last year. The year-over-year increase reflects $12.3 million of higher sales across our commercial aerospace applications mainly for single-aisle aircraft for the seven three seven MAX and A. two 20 platforms and $5 million of higher revenue within the military and space markets, mainly from the ramp-up in sales in the Apache program and other military rotary wing aircraft platforms.

現在讓我談談我們的部門結果。我們的結構系統部門在 2023 年第四季的營收為 8,560 萬美元，而去年為 6,820 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 1230 萬美元，主要是七三七 MAX 和 A.二 20 平台的單通道飛機，以及軍事和太空市場中收入增加了 500 萬美元，主要是來自阿帕契計劃和其他軍用旋翼飛機平台銷量的增加。

Structural Systems operating income for the quarter was $6.6 million or 7.7% of revenue compared to $4.4 million or 6.4% of revenue last year. Excluding restructuring charges and other adjustments in both years, the segment operating margin was 14.6% in Q4 2023 versus 10.8% in Q4 2022. Strong year-over-year improvement was driven by favorable product mix, better pricing and higher and more scale in the businesses have in the business as our commercial aerospace revenues have continued to grow. This has been another great quarter for our Structural Systems segment. Our Electronic Systems segment posted revenue of $106.7 million in the fourth quarter of 2023 versus $120 million in the prior year period. The decline was mainly due to lower revenues with the company's military and space customers, including the impact and timing of reductions in revenues on sunsetting programs such as the F-18, not synchronized with growth in sales from the company's position on next-gen platform.

結構系統本季營業收入為 660 萬美元，佔營收的 7.7%，而去年為 440 萬美元，佔營收的 6.4%。不包括這兩年的重組費用和其他調整，2023 年第四季該部門的營業利潤率為 14.6%，而 2022 年第四季為 10.8%。隨著我們的商業航空收入持續成長，有利的產品組合、更好的定價以及業務規模越來越大，推動了同比的強勁成長。對於我們的結構系統部門來說，這是另一個偉大的季度。我們的電子系統部門在 2023 年第四季的營收為 1.067 億美元，而去年同期為 1.2 億美元。下降的主要原因是該公司的軍事和航太客戶收入下降，包括F-18等即將退出的專案收入減少的影響和時間安排，與該公司在下一代平台上的地位帶來的銷售成長不同步。

Electronic Systems.

電子系統。

Operating income for the fourth quarter was $9.8 million or 9.2% of revenue versus $13 million or 10.8% of revenue in the prior year period. Excluding restructuring charges and other adjustments in both years, the segment operating margin was 10.2% in Q4 2023 versus 12.9% in Q4 2022. Year over year decrease was due to unfavorable product mix. And as Steve mentioned earlier, due to the loss of manufacturing volume and inefficiencies at our very well performance center as we wind down their operations. To clarify, such inefficiencies have not been considered as restructuring charges in our calculation of adjusted operating income or adjusted EBITDA.

第四季營業收入為 980 萬美元，佔營收的 9.2%，去年同期為 1,300 萬美元，佔營收的 10.8%。不包括這兩年的重組費用和其他調整，2023 年第四季該部門的營業利潤率為 10.2%，而 2022 年第四季為 12.9%。年比下降是由於不利的產品結構。正如史蒂夫之前提到的，由於我們關閉了營運中心，我們性能良好的中心的製造量損失和效率低下。需要澄清的是，當我們計算調整後營業收入或調整後 EBITDA 時，此類低效率並未被視為重組費用。

Next on the restructuring. As a reminder, and as discussed previously, we commenced a restructuring initiative back in 2022. These actions are being taken to accelerate the achievement of our strategic goals and to better position the Company for stronger performance in the short and long term. This includes the shutdown of our facilities in Monrovia, California and variable Arkansas and transfer of majority of that work to a low-cost operation in Guaymas, Mexico, with the remainder going to other existing performance centers in the United States we continue to make progress in these transitions with excellent employee retention and engagement and are also working diligently with our customers, Boeing and RPX to obtain the requisite approvals during Q4 2023, we recorded $1.9 million in restructuring charges. The majority of these charges were severance and benefits related as we continue to wind down the two operations. The recertification process is ongoing, and we plan to close both facilities fully in the first half of 2024, we expect to incur $5 million to $7 million in restructuring expenses through 2024, and that will conclude the spending upon completion of our restructuring program. We expect to generate $11 million to $13 million in annual savings from our actions and expect a portion of those savings to be realized starting in the second half of 2024, we anticipate selling the land and buildings at both Monrovia, California and variable Arkansas.

接下來是重組。謹此提醒，如同先前所討論的，我們早在 2022 年就開始了重組計畫。採取這些行動是為了加速實現我們的策略目標，並讓公司更好地定位，在短期和長期內取得更強勁的業績。這包括關閉我們在加州蒙羅維亞和阿肯色州的設施，並將大部分工作轉移到墨西哥瓜伊馬斯的低成本營運中心，其餘工作將轉移到美國的其他現有表演中心，我們將繼續取得進展在這些過渡中，我們憑藉出色的員工保留率和敬業度，並與我們的客戶波音和RPX 努力合作，以在2023 年第四季度獲得必要的批准，我們記錄了190 萬美元的重組費用。隨著我們繼續減少這兩項業務，這些費用大部分是與遣散費和福利相關的。重新認證過程正在進行中，我們計劃在 2024 年上半年完全關閉這兩個設施，預計到 2024 年將產生 500 萬至 700 萬美元的重組費用，這將在我們的重組計劃完成後結束支出。我們預計，我們的行動將每年節省1,100 萬至1,300 萬美元，並預計其中一部分將於2024 年下半年開始實現，我們預計將出售加州蒙羅維亞和阿肯色州蒙羅維亞的土地和建築物。

Turning next to liquidity and capital resources. During Q4 2023, we generated $26.5 million in cash flow from operating activities, which was up from $14.3 million in Q3 2023. For the full year 2023, we generated $31.1 million in cash flow from operating activities. This is despite cash payments of $10.7 million for restructuring and $18.3 million for taxes relating to changes in rules for R&D tax credits relating to 2022 and 2023 at the end of the fourth quarter, we have available liquidity of $218.9 million, comprising of the unutilized portion of our revolver and cash on hand, our existing credit facility was put in place in July 2022 at an opportune time in the credit markets, allowing us to reduce our spread, increased the size of our revolver and allowing us the flexibility to execute on our acquisition strategy. Our debt through Q4 2023 was 100% floating and linked to software as a result. And as I have highlighted before the increase in our interest cost from $3.5 million in Q4 2022 to $5.4 million in Q4 2023 was driven by the run-up in short-term rates due to the Fed rate hike. In November 2021, we had put in place an interest rate hedge that went into effect for a seven year period starting January 2024 and begs the one month term so far at 170 basis points for $150 million of our debt. This will help drive significant interest cost savings in 2024 and beyond.

接下來轉向流動性和資本資源。2023 年第四季度，我們的營運活動現金流量為 2,650 萬美元，高於 2023 年第三季的 1,430 萬美元。2023 年全年，我們的經營活動產生了 3,110 萬美元的現金流。儘管截至第四季度末，我們支付了1,070 萬美元用於重組的現金，以及1,830 萬美元用於與2022 年和2023 年研發稅收抵免規則變化相關的稅款，但我們的可用流動資金為2.189億美元，其中包括未使用部分我們現有的信貸安排於 2022 年 7 月在信貸市場的適當時機到位，使我們能夠減少利差，增加我們的左輪手槍規模，並允許我們靈活地執行我們的收購策略。到 2023 年第四季度，我們的債務是 100% 浮動的，因此與軟體掛鉤。正如我之前所強調的，我們的利息成本從 2022 年第四季的 350 萬美元增加到 2023 年第四季的 540 萬美元，這是由於聯準會升息導致短期利率上升所致。2021 年 11 月，我們實施了利率對沖，利率對沖從 2024 年 1 月開始生效，為期七年，到目前為止，我們的 1.5 億美元債務的期限為 170 個基點。這將有助於在 2024 年及以後大幅節省利息成本。

To conclude the financial overview for Q4 2023. I would like to say that we had a strong finish to 2023 and anticipate another strong year in 2024.

總結 2023 年第四季的財務概覽。我想說的是，我們在 2023 年取得了出色的成績，並預計 2024 年將是另一個強勁的一年。

I would now like to turn it back over to Steve for his closing remarks.

我現在想把它轉回給史蒂夫作結束語。

Steve, we had actually one. So just a couple of more comments were good questions and closing. I think Q4 was a very good quarter with many highlights for the Company and our shareholders in addition to achieving all-time highs for annual revenue and adjusted EBITDA of $757 million, $102 million, respectively, in 2023 are wonderful milestones and very happy for the hardworking to Kaman team and all of our other stakeholders for those achievements.

史蒂夫，我們實際上有一個。所以，再補充幾句評論就是好問題並結束。我認為第四季度是一個非常好的季度，除了在2023 年實現年收入和調整後EBITDA 分別達到7.57 億美元和1.02 億美元的歷史新高之外，公司和我們的股東還有很多亮點，這是美妙的里程碑，我們對此感到非常高興這些成就歸功於卡曼團隊和所有其他利益相關者的辛勤努力。

I also want to mention that 2024 will be our 175th year of continuous operation here to come a great achievement, and we will be recognizing that through the year.

我還想提一下，2024 年將是我們在這裡持續運作並取得偉大成就的第 175 個年頭，我們將在這一年中認識到這一點。

Final note, as our 2027 strategy, which we've talked about. We had a strong 1st year with both engineered products and aftermarket, gaining a larger percentage of revenue for the company in 2023 versus 2022 and the future. It's very bright. If those remarks, I will conclude and open up to questions.

最後一點是我們已經討論過的 2027 年策略。我們在工程產品和售後市場方面都取得了強勁的第一年，與 2022 年及未來相比，2023 年為公司帶來了更大的收入百分比。非常明亮。如果有這些言論，我將總結並提出問題。

Thank you for listening.

感謝您的聆聽。

Certainly as a reminder, to ask a question please press star one on your telephone and wait for your name to be announced. To withdraw your question, please press star one again, please standby while we compile the Q&A roster. And one moment for our first question. Our first question will be coming from Griffin balls of B. Riley Securities. Your line is Yes.

當然，作為提醒，要提問，請按電話上的星號一，然後等待宣布您的名字。如需撤回您的問題，請再次按星號一，我們正在整理問答名單，請稍候。請稍等一下我們的第一個問題。我們的第一個問題將來自 B. Riley 證券公司的格里芬球。你的路線是「是」。

Hi, thank you for taking my questions. So Steve, you just mentioned the Engineered Products and aftermarket parts. Are there any more specific details you can give on percentage of revenue there and how you would characterize that trending going forward versus the rest of the business.

你好，謝謝你回答我的問題。史蒂夫，您剛剛提到了工程產品和售後零件。您是否可以提供有關該領域收入百分比的更具體細節，以及您如何描述該業務相對於其他業務的趨勢。

And so I'm not going to disclose an actual number, though, just not just at this time, we will probably do something as we go forward at Investor Day meeting, but it was certainly it was certainly up quite a bit. I will say that both in revenue, both in revenue and the aftermarket for Engineered Products. And we're moving we have a 25% target for 2027 for revenues for Engineered Products. And we just say that we're tracking very strongly towards that and to beat it.

因此，我不會透露實際數字，不僅僅是在這個時候，我們可能會在投資者日會議上採取一些措施，但可以肯定的是，它肯定上升了很多。我想說的是，無論是在收入方面，還是在工程產品的收入和售後市場方面。我們正在製定 2027 年工程產品收入成長 25% 的目標。我們只是說，我們正在非常努力地朝著這個目標前進並擊敗它。

Okay, great. Fair enough. And I appreciate the color. And then on So we saw a sequential on slight sequential decline in gross margin. I'm just curious if you can add a little bit more color on what you're seeing there and how you're thinking about that in on the next quarter and going into '24.

好的，太好了。很公平。我很欣賞它的顏色。然後我們看到毛利率連續輕微下降。我只是好奇你是否可以為你所看到的內容添加更多色彩，以及你在下個季度和進入 24 年後如何看待這一點。

Repeat that question once more Griffin?

再次重複這個問題格里芬？

Yes.

是的。

So I mean, we saw a sequential decline in gross margin on. I was just curious if you could give some more color on what was driving that and how you're thinking about that trending going into '24?

所以我的意思是，我們看到毛利率連續下降。我只是很好奇您是否可以提供更多關於推動這一趨勢的因素以及您如何看待 24 世紀的趨勢？

That's why.

這就是為什麼。

So the sequential decline was driven by one product mix, but also because we have two facilities that we are in the process of winding down, and we're just producing inefficiently there, given the much lower volume of operations versus the size and scope of those facilities and that's causing a drag and particularly on the Electronic Systems side, but also some drive on the structural system side. And we expect that as headwinds to linger, but gradually go down as we close those both those facilities in the first half of 2024?

因此，連續下降是由一種產品組合驅動的，但也因為我們有兩個工廠正在逐步關閉，考慮到與規模和範圍相比，業務量要低得多，我們在那裡生產效率低下。這些設施造成了拖累，特別是在電子系統方面，但也對結構系統方面產生了一些推動。我們預計阻力會持續存在，但隨著我們在 2024 年上半年關閉這兩個設施，阻力會逐漸減弱？

Yes, I think you cannot just put some color on that for bearings of, for instance, shall adjourn quarter, obviously have a lot less people are reserved for it. We would run sort of $7 million a quarter at Perryville and now are less than $1 million just making the Tomahawk. So that's why there's a little bit of a timing issue or have some of that.

是的，我認為你不能只是給這個問題加上一些顏色，例如，將推遲季度，顯然為此保留的人要少得多。我們在佩里維爾每季的支出約為 700 萬美元，而現在光是製造「戰斧」就不到 100 萬美元。這就是為什麼存在一點時間問題或有一些問題。

Okay, great. Thanks for. Thanks for the detail on that. And then just one last one for me. I apologize if I missed this in the prepared remarks. Can you give us an update on how the offloading opportunities are trending and how you're thinking about the potential upside to those 2025 targets on that front?

好的，太好了。感謝。感謝您提供詳細資訊。然後是我的最後一件事。如果我在準備好的發言中遺漏了這一點，我深表歉意。您能否向我們介紹一下卸載機會的最新趨勢，以及您如何看待 2025 年目標在這方面的潛在上行空間？

Yes. Thank you for the question. Yes, this is you know, I've been talking about this. We think there is some potential above the one 25, though we still have a little more work to do here. I know it's all very positive. It's actually movement isn't as I mentioned in my remarks, more to the radar business for this is, you know, a lot of it is cards, but so what happens is just you know it when you deal with RTX and you're moving work out of their facility. They have lots of inventory. They have lots of different things. We have to overcome the test equipment that they either want to keep or they don't want to keep, you know, they have that test equipment has lead times. It's over $1 million for some of these the test, the equipment, the machines so there's a lot that goes into it. But once you once it gets, the Tulsa gets somewhere else and Appleton are up, we're off to the races here. So we are actively heads down working very hard in 2024 to get a lot of this past. It was sort of the finish line here. So we'll have an update later in the year, but we're feeling real good about where we are and hope to have that report on the one 25 plus towards the end of 2024.

是的。感謝你的提問。是的，這就是你知道的，我一直在談論這個。我們認為 25 歲以上還有一些潛力，儘管我們還有更多工作要做。我知道這一切都是非常正面的。實際上，它的運動並不像我在評論中提到的那樣，更多的是雷達業務，你知道，其中很多都是卡，但是當你處理 RTX 時，你就知道會發生什麼，並且你將工作移出他們的設施。他們有大量庫存。他們有很多不同的東西。我們必須克服他們想要保留或不想保留的測試設備，你知道，他們的測試設備有交貨時間。其中一些測試、設備、機器的花費超過 100 萬美元，所以涉及的內容很多。但是一旦你到達，塔爾薩到達其他地方並且阿普爾頓上升了，我們就開始在這裡比賽。因此，我們正在 2024 年積極埋頭苦幹，以彌補過去的不足。這裡算是終點線了。因此，我們將在今年稍後發布更新，但我們對目前的情況感到非常滿意，並希望在 2024 年底之前獲得有關 one 25 plus 的報告。

Ok, great. Glad to hear. Thanks for taking my questions.

太好了。很高興聽到。感謝您回答我的問題。

Appreciate it.

欣賞它。

Again.

再次。

Ladies and gentlemen, if you do have a question, please press star one on your touchtone telephone. Again, please press star one.

女士們先生們，如果您確實有疑問，請按按鍵式電話上的星號一。再次，請按星號一。

Our next question will be coming from Michael, your Molly of Truist Securities. Your line is open.

我們的下一個問題將來自邁克爾，您的 Truist 證券公司的莫莉。您的線路已開通。

Hey, good afternoon, guys. Thanks for taking the question. And I don't know, Steve, or Sumant, just I guess if we'd look maybe to piggyback on the offloading, but if we look at defense revenue's down sequentially, you finished the year, I guess, down two years in a row. And I guess you haven't really parsed out the guidance, but it sounded like there was more conservatism in there around the MAX. What's the biggest headwind I mean I know you called out the F-16 wind down, but is there anything else, you know, impacting the defense revenue growth?

嘿，下午好，夥計們。感謝您提出問題。我不知道，史蒂夫，或者蘇曼特，只是我想我們是否會考慮減輕負擔，但如果我們看看國防收入連續下降，我想你今年會下降兩年。排。我猜你還沒有真正解析出指導意見，但聽起來 MAX 周圍有更多的保守主義。我的意思是，最大的阻力是什麼？我知道您呼籲停止 F-16 的生產，但是您知道還有其他因素會影響國防收入的成長嗎？

Yes, you know, it's again, this is Mike. Good to be with you?

是的，你知道，又來了，這是麥克。和你在一起真好？

It's you know, it's a little bit a little bit of a mix. May look, the F-18 is significant, right, not in of the total business, but the FHA will also earlier and I'll say 2021, 2022, we did these toll missile cases for Raytheon, and they were running 15 or 20 plus. So call it a year. And what happens with the toll missile cases, you know, they have problems in supply chain and they can't get the motor for the missile. And then also in the case of business dries up for year two, and we're a little bit in that valley right now. So there's just a couple there's nothing systemic to the business. We like where we are, you know, we're getting pinched here and there a little bit. But we think that coming out of this thing where we're in really good shape and we have a team. I think we had a great run with it, but now those things sometimes they come to an end.

你知道，這有點混合。可能看起來，F-18 很重要，對吧，不屬於整個業務，但FHA 也會更早，我會說2021 年、2022 年，我們為雷神公司做了這些收費導彈案例，他們正在運行15 或20加。所以就叫一年吧。收費導彈案件會發生什麼，你知道，他們的供應鏈有問題，他們無法獲得導彈的引擎。然後，在第二年業務枯竭的情況下，我們現在有點處於低谷。所以只有幾個，對業務來說沒有任何系統性。我們喜歡我們現在的處境，你知道，我們到處都受到了一些擠壓。但我們認為，從這件事中我們的狀態非常好並且我們有一個團隊。我認為我們在這方面做得很好，但現在這些事情有時會結束。

Okay. Okay.

好的。好的。

And it did I hear it right. The offloading was $90 million expected to be in '24 because I think you called out maybe seen that step up to [125 and 25].

我沒聽錯。預計 24 年的卸載金額為 9000 萬美元，因為我認為您可能已經看到了這一步驟[125和25]。

Yes, I think that's where we're heading. So again, work and we're you know, again, it's one of the big rocks here is the SPY. six, and there's a number of cards, right? So we have the first cards already being made at Tulsa and that's, you know, let's just those cards, the lower $15 million, $20 million a year, right? So we have those going in parallel, we've got two other layers of cards that are just general. They're in a they're in Andover. It's tough to get it over here, work and fit right initially until we get all the material from them because they get the inventory, right? So our revenue is tamped down a lot, but really a breakthrough feeling very good about 2020 for these changes to just you know, that's great businesses, but unfortunately come out of a big OEM. It's a bit of a long time coming.

是的，我認為這就是我們前進的方向。再說一遍，工作，我們是你知道的，再說一次，這裡的大石頭之一就是間諜。六張，還有很多張牌，對吧？所以我們已經在塔爾薩製作了第一批卡片，你知道，就這些卡片而言，每年 1500 萬美元、2000 萬美元，對吧？所以我們有這些並行進行，我們還有另外兩層通用的卡片。他們在安多弗。在我們從他們那裡拿到所有材料之前，很難把它送到這裡，開始工作和安裝，因為他們有庫存，對吧？因此，我們的收入大幅下降，但對於 2020 年的這些變化來說，確實是一次突破，感覺非常好，你知道，這是很棒的業務，但不幸的是來自大型 OEM。來的時間有點長了。

Got it. Got it.

知道了。知道了。

And just to highlight again, the Our defense backlog is the highest it has ever been in the last few years. So yes, you had some decline in the current year, but the backlog is at the highs, and that's kind of a two year look on We in our backlog numbers. So that's a good position here.

再次強調一下，我們的國防積壓是過去幾年來最高的。所以，是的，今年有一些下降，但積壓量處於高位，這有點像是我們兩年來積壓量的情況。所以這是一個很好的位置。

Yes.

是的。

Yes.

是的。

No, no, I noticed that. Yes, definitely positive there. And it's just I guess, what's the level of conservatism or prudence that you've sort of built in for the MAX in 24? Can you even give us a sense what you're delivering to the Spirit, what you're assuming. I know we've heard, you know, kind of some several commentary from Boeing about lower first half picking up second half, but where exactly are you guys and what are you in?

不，不，我注意到了。是的，絕對是積極的。我只是猜測，你們在 24 小時中為 MAX 內建的保守主義或謹慎程度是多少？你能否讓我們了解一下你正在向聖靈傳遞什麼，你正在假設什麼。我知道我們已經聽到了波音公司關於上半場低迷、下半場回升的一些評論，但你們到底在哪裡？你們處於什麼狀態？

Yes, that's a little bit a little bit of a moving target. So you're over here. We are seeing better things ramping up a little bit at Spirit and Boeing and now things are, as you know, from reports on January, we feel that too right, but we're probably sitting in for some of you were probably in the 32, 34 range, right?

是的，這有點移動目標。所以你在這裡。我們看到精神航空和波音的情況有所好轉，正如您所知，從1 月份的報告來看，現在的情況是這樣的，我們覺得這太正確了，但我們可能會坐視你們中的一些人可能在32 中，34範圍，對嗎？

For 2024, I'd say, right?

2024 年，我會說，對嗎？

Yes, 34, yes.

是的，34，是的。

Yes.

是的。

So far, we like kind of made a hire but again, we have to yes, I think this momentum is just going to push us forward. And hopefully as we get through this FDA audit and rightly so, right, but you know where we're being a little modest right now, but we certainly expect things to ramp up. The good. The good news is, Mike. We have the capacity and we have the people. We just need yours.

到目前為止，我們喜歡聘用一名員工，但我們必須再次聘用，我認為這種勢頭只會推動我們前進。希望當我們通過 FDA 的審計時，這是正確的，對的，但你知道我們現在有點謙虛，但我們當然期望事情會加速。好的。好消息是，麥克。我們有能力，也有人才。我們只需要你的。

Yes, yes, makes sense.

是的，是的，有道理。

Yes.

是的。

Okay, perfect.

好的，完美。

I'll jump back in the queue.

我會跳回到隊列中。

Thank you, Mike.

謝謝你，麥克。

Thank you, Mike.

謝謝你，麥克。

And I'm showing no further questions I would now like to turn the conference back to Steve Oswald for closing remarks.

我沒有提出任何進一步的問題，現在我想將會議轉回史蒂夫·奧斯瓦爾德（Steve Oswald）做總結發言。

Okay. Let me finish up here, so I just wanted to thank everybody for joining us today. So obviously, we had a very, very good year in 2023. I'm thrilled that we're able to break through our record last established in 2012, and we're marching forwards are for 2017 commitments and we're building more engineered products or were driving more aftermarket. And you were cleaning up our contract manufacturing and taking costs out of that and driving hopefully much better day once we get these two factories closed. And I believe that's going to be the case. So looking forward to a great year ahead, we again, thank everybody for their support. And I want to again thank our employees for all their hard work in 2023. Thank you.

好的。我的演講就到這裡結束了，我只想感謝大家今天加入我們。顯然，我們在 2023 年度過了非常非常好的一年。我很高興我們能夠突破 2012 年創下的記錄，我們正在朝著 2017 年的承諾邁進，我們正在製造更多的工程產品或推動更多的售後市場。你們正在清理我們的合約製造並降低成本，並希望在我們關閉這兩家工廠後，我們的日子會更好。我相信情況將會如此。展望未來美好的一年，我們再次感謝大家的支持。我想再次感謝我們的員工在 2023 年的辛勤工作。謝謝。

And this concludes today's conference call. Thank you for participating.

今天的電話會議到此結束。感謝您的參與。

You may now disconnect.

您現在可以斷開連線。