Dorman Products Inc (DORM) 2023 Q4 法說會逐字稿

Good morning, and thank you for standing by. Welcome to the Dorman Products fourth-quarter 2023 earnings conference call. (Operator instructions) Please note this conference is being recorded.

早安，感謝您的支持。歡迎參加 Dorman Products 2023 年第四季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I'd like to turn the conference over to David Hession, Dorman's Chief Financial Officer. Thank you, sir. Please go ahead.

我想將會議轉交給 Dorman 財務長 David Hession。謝謝你，先生。請繼續。

Thank you. Good morning, and welcome to Dorman's fourth-quarter 2023 earnings conference call. I'm joined today by Kevin Olsen, our Chief Executive Officer. First, Kevin will provide a business update, and I will review the quarterly and full-year financial results and provide our 2024 outlook. And then Kevin will provide closing remarks. After that, we'll open the call for questions.

謝謝。早上好，歡迎參加 Dorman 的 2023 年第四季財報電話會議。今天我們的執行長凱文·奧爾森 (Kevin Olsen) 也加入了我的行列。首先，Kevin 將提供業務更新，我將回顧季度和全年財務表現並提供 2024 年展望。然後凱文將致閉幕詞。之後，我們將開始提問。

By now, everyone should have access to our earnings release and earnings call presentation, which went out yesterday after the market closed. These documents are available on the Investor Relations portion of our website at dormanproducts.com.

到目前為止，每個人都應該可以看到我們昨天收盤後發布的收益報告和收益電話會議演示。這些文件可在我們網站 dormanproducts.com 的投資者關係部分取得。

Before we begin, I would like to remind everyone that our prepared remarks, earnings release, and investor presentation include forward-looking statements within the meaning of Federal securities laws. We advise listeners to review the risk factors and cautionary statements in our most recent 10-Q, 10-K ,and yesterday's release for important material assumptions, expectations, and factors that may cause actual results to differ materially from those anticipated and described in such forward-looking statements.

在開始之前，我想提醒大家，我們準備的評論、收益發布和投資者介紹包括聯邦證券法含義內的前瞻性陳述。我們建議聽眾查看我們最近發布的10-Q、10-K 和昨天發布的風險因素和警示性聲明，以了解可能導致實際結果與此類報告中預期和描述的結果存在重大差異的重要材料假設、預期和因素。前瞻性陳述。

We'll also reference certain non-GAAP measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are contained in the schedules attached to our press release and in the appendix to this earnings call presentation, both of which can be found on the Investor Relations section of Dorman's website.

我們也將參考某些非公認會計準則衡量標準。這些非公認會計準則衡量標準與最直接可比較的公認會計準則衡量標準的調節包含在我們新聞稿所附的時間表和本次財報電話會議演示文稿的附錄中，兩者都可以在多爾曼網站的投資者關係部分找到。

Finally, during the Q&A portion of today's call, we ask that participants limit themselves to one question, with one follow-up, and to rejoin the queue if they have additional questions. And with that, I will turn the call over to Kevin.

最後，在今天電話會議的問答部分，我們要求參與者將自己限制在一個問題上，並提出一個後續問題，如果還有其他問題，請重新加入隊列。這樣，我會將電話轉給凱文。

Thanks, David. Good morning, and thank you for joining us on our fourth-quarter 2023 earnings call. Today, I'll discuss our strategy, operating highlights, and business activity. Please turn to slide 3 if you're following along in our deck.

謝謝，大衛。早安，感謝您參加我們的 2023 年第四季財報電話會議。今天，我將討論我們的策略、營運亮點和業務活動。如果您正在閱讀我們的幻燈片，請翻到幻燈片 3。

For Q4, we realigned our business along three segments, consistent with the sectors of the motor vehicle aftermarket in which we operate: light duty, heavy duty and specialty vehicles. In connection with our transition to segment reporting, we are initiating live quarterly conference calls to provide additional insight into these segments and the overall company. Before we dive into Q4 performance, we thought it would be helpful to step back for a moment and review who we are as a company and what we do.

第四季度，我們根據我們經營的機動車輛售後市場領域，按照三個細分市場重新調整了業務：輕型車、重型車和特種車。隨著我們向細分市場報告的過渡，我們正在啟動季度現場電話會議，以提供有關這些細分市場和整個公司的更多見解。在我們深入了解第四季度的業績之前，我們認為退一步回顧一下我們作為一家公司的定位和我們所做的事情會有所幫助。

Some of you have likely followed our story for years, but there are many listeners who are just getting to know Dorman. We are known as one of the leading innovators of repair solutions and motor vehicle aftermarket. We deliver products from bumper to bumper across our legacy light duty business, our commercial vehicle-focused heavy duty business, and our UTV and ATV-focused specialty vehicle business. We are an engine of continuous innovation across each of these segments. And while our heavy duty and specialty businesses are relatively new additions to the portfolio resulting from our acquisitions of Dayton Parts and SuperATV, we're very excited about what the future holds.

你們中的一些人可能已經關注我們的故事多年，但還有許多聽眾剛開始了解多爾曼。我們被譽為維修解決方案和機動車輛售後市場的領先創新者之一。我們在傳統的輕型業務、以商用車為重點的重型業務以及以 UTV 和 ATV 為重點的特種車輛業務中提供從保險桿到保險桿的產品。我們是每個細分市場持續創新的引擎。雖然我們的重型和特殊業務是我們收購 Dayton Parts 和 SuperATV 後產品組合中相對較新的成員，但我們對未來感到非常興奮。

Moving on to slide 4. As I mentioned, we're leading the charge on innovation, and we think the capabilities and approach of our new product development team are unique. Over decades, our ideation team has built an immense network of relationships with repair technicians and end customers in the field that enable us to continuously cultivate a robust new product pipeline.

繼續看投影片 4。正如我所提到的，我們在創新方面處於領先地位，我們認為我們的新產品開發團隊的能力和方法是獨一無二的。幾十年來，我們的創意團隊與現場維修技術人員和最終客戶建立了龐大的關係網絡，使我們能夠不斷培養強大的新產品管道。

Over the last three years, we brought over 19,000 new SKUs to market across our three segments, such as our patented oil filter housing, a number of electronic control modules, and an OE FIX line of pre-press axles, many of which have enhanced features designed to solve repair problem created by the original equipment.

在過去三年中，我們在三個細分市場向市場推出了超過 19,000 個新 SKU，例如我們專利的機油濾清器外殼、許多電子控制模組以及 OE FIX 系列預壓軸，其中許多都增強了旨在解決原始設備造成的維修問題的功能。

The technical capabilities and experience of our new product development team enable us to provide a comprehensive suite of aftermarket solutions and bumper to bumper and across different drivetrains from ICE to hybrid to BEV. We are truly agnostic to powertrain type.

我們的新產品開發團隊的技術能力和經驗使我們能夠提供一整套售後解決方案，涵蓋從內燃機到混合動力再到純電動車的不同傳動系統。我們對動力系統類型確實不可知。

Our product development capabilities are further enhanced by our asset-light model that leverages our network of hundreds of suppliers globally. We utilize this diverse network to manufacture the vast majority of our products. With this approach, our team is able to work closely with our suppliers to ensure products meet our designs and specifications, and we have the ability to efficiently and effectively flex production up or down as needed to best serve the needs of our markets.

我們的輕資產模式進一步增強了我們的產品開發能力，該模式利用了我們由全球數百家供應商組成的網路。我們利用這個多樣化的網路來製造我們的絕大多數產品。透過這種方法，我們的團隊能夠與供應商密切合作，確保產品符合我們的設計和規格，並且我們有能力根據需要有效地上下調整生產，以最好地滿足市場的需求。

Moving on to slide 5, we leverage our new product innovation engine across an expansive total addressable market of $165 billion. We have a significant opportunity to grow our share of wallet with a wide range of leading aftermarket customers. Also, while our heavy duty and specialty vehicle segments collectively contribute a quarter of our top line today, we're targeting growing those businesses to approximately 15% of top line each by the end of 2028.

轉到投影片 5，我們在 1,650 億美元的廣大總目標市場中利用我們的新產品創新引擎。我們有很大的機會增加我們在眾多領先的售後市場客戶中的份額。此外，雖然我們的重型和特種車輛細分市場目前合計貢獻了我們營收的四分之一，但我們的目標是到 2028 年底將這些業務分別成長到營收的 15% 左右。

On slide 6, you will find our strategy for driving growth and profitability by leveraging our innovation capabilities to bring thousands of new products to market annually. In light duty, there's a significant focus on growing IP-centric categories like our advanced electronics, which have a large current OE share and premium margin potential. We see opportunities that drawn the digital investments that we've made to support our customers' omnichannel selling approach to continue to broaden our distribution reach. We're also taking actions to improve supply chain efficiency and optimize our distribution operations.

在投影片 6 中，您將看到我們透過利用我們的創新能力每年將數千種新產品推向市場來推動成長和獲利的策略。在輕型應用中，重點關注不斷增長的以 IP 為中心的類別，例如我們的先進電子產品，這些類別目前擁有很大的 OE 份額和溢價潛力。我們看到了吸引數位投資的機會，這些投資是為了支持客戶的全通路銷售方式，從而繼續擴大我們的分銷範圍。我們也採取行動提高供應鏈效率並優化我們的分銷業務。

In heavy duty, we're implementing the same Dorman playbook that's been effective in our light duty business. We're investing in new product capabilities to drive innovation and in our digital infrastructure to enable omnichannel presence. And we're optimizing our manufacturing operations and supply network.

在重型業務中，我們正在實施在輕型業務中有效的相同多爾曼策略。我們正在投資新產品功能以推動創新，並投資於數位基礎設施以實現全通路業務。我們正在優化我們的製造營運和供應網路。

Turning to specialty vehicle, the acquisition of SuperATV gave us access to high margin and rapidly expanding market specialty specialized transport vehicles. We've increased our focus on growing nondiscretionary parts categories include repair parts, which approximate 50% of this segment's net sales. We'll also continue to invest in the upgrade accessory categories that SuperATV is known for. Finally, we're focused on growing our presence with the vehicle dealers, particularly in regions where we're underpenetrated, such as the West Coast.

轉向特種車輛，收購 SuperATV 使我們能夠獲得高利潤且快速擴張的特種特種運輸車輛市場。我們更加關注不斷成長的非自由裁量零件類別，包括維修零件，約佔該細分市場淨銷售額的 50%。我們也將繼續投資 SuperATV 聞名的升級配件類別。最後，我們致力於擴大我們在汽車經銷商中的影響力，特別是在我們滲透率不足的地區，例如西海岸。

As we look back on our performance over the last few years on slide 7, we've demonstrated a trend of top-line growth, disciplined investment, and cost control. From 2019 to 2023, our top line grew at an 18% CAGR, while we've also been prudent operators as demonstrated by adjusted operating income growth above our peers.

當我們在投影片 7 中回顧過去幾年的業績時，我們展示了營收成長、嚴格投資和成本控制的趨勢。從 2019 年到 2023 年，我們的營收複合年增長率為 18%，同時我們也是謹慎的營運商，調整後的營業收入成長高於同業就證明了這一點。

Before I hand it over to David, I wanted to provide you with my thoughts on our results. We ended the year with strong Q4 financial results, which were aligned with our guidance. We delivered record net sales and EPS and significantly improved our margins. For the year, we generated record free cash flow, continue to pay down our debt, and repurchase shares.

在將其交給大衛之前，我想向您提供我對我們結果的想法。我們以強勁的第四季度財務業績結束了這一年，這與我們的指導一致。我們實現了創紀錄的淨銷售額和每股收益，並顯著提高了我們的利潤率。今年，我們創造了創紀錄的自由現金流，繼續償還債務並回購股票。

Our innovation engine launched thousands of new products and solutions across all three segments, and we drove efficiencies into and cost out of our operations during the quarter. I'm proud of our contributors who are the driving force behind our strong performance as they come to work each day focused on how we can deliver innovative solutions to the aftermarket. I want to thank them for the ingenuity, dedication, and hard work.

我們的創新引擎在所有三個細分市場中推出了數千種新產品和解決方案，並在本季度提高了營運效率並降低了營運成本。我為我們的貢獻者感到自豪，他們是我們強勁業績背後的驅動力，他們每天工作時都專注於我們如何為售後市場提供創新解決方案。我要感謝他們的聰明才智、奉獻精神和辛勤工作。

Gross margin was a heightened focus area of the company in 2023 and pleased to report that our adjusted Q4 gross margin increased 640 basis points year over year and was up 180 basis points sequentially compared to Q3. Throughout the year, we managed through significant inflation and implemented productivity measures in our operations, which enable us to push our margins back up to 2018 levels.

毛利率是公司 2023 年重點關注的領域，我們很高興地報告，調整後的第四季度毛利率同比增長 640 個基點，較第三季度環比增長 180 個基點。在這一年裡，我們成功應對了嚴重的通貨膨脹，並在營運中實施了生產力措施，這使我們能夠將利潤率推回 2018 年的水平。

Gross margin improvement was also the engine behind the strong Q4 free cash flow that we used to pay down our debt and repurchase our shares. Overall, Dorman continues to stand out strong financial footing.

毛利率的改善也是第四季強勁的自由現金流背後的引擎，我們用這些現金流來償還債務和回購股票。總體而言，多爾曼繼續保持強勁的財務基礎。

As I look forward, I'm optimistic about 2024. Industry fundamentals remained strong. While there is a level of macro uncertainty in global markets that have the potential to impact near-term results. I believe we have the team who plans in place to deliver strong results in 2024.

展望未來，我對 2024 年持樂觀態度。業界基本面依然強勁。儘管全球市場存在一定程度的宏觀不確定性，並有可能影響近期業績。我相信我們的團隊計劃在 2024 年取得強勁成果。

At this point, I'd like to turn things over to David so he can provide some deeper perspective on our financial performance.

現在，我想將事情交給 David，以便他可以對我們的財務表現提供更深入的見解。

Thanks, Kevin. I'll begin by discussing Q4 and 2023 results then move to our balance sheet and capital allocation strategy, followed by our 2024 guidance. One note, our 2022 Q4 and full-year results included a 53rd week. Make our results comparable, I'm going to reference our Q4 and full-year results against 2022 results, adjusted to remove the extra week. A table reconciling reported results and results excluding the 53rd week is included in the appendix to the earnings presentation deck.

謝謝，凱文。我將首先討論第四季度和 2023 年的業績，然後討論我們的資產負債表和資本配置策略，然後是我們的 2024 年指導。需要注意的是，我們的 2022 年第四季和全年業績包括第 53 週。為了使我們的結果具有可比性，我將參考我們的第四季度和全年結果與 2022 年的結果，並進行調整以消除額外的一周。收益簡報的附錄中包含了一份對報告結果和不包括第 53 週的結果進行調節的表格。

Turning to slide 8. Q4 net sales were $494 million, a record and up 3% year over year. Sales growth was primarily driven by higher volume, including the introduction of new products to market and price increases to offset inflation.

轉到投影片 8。第四季淨銷售額為 4.94 億美元，創歷史新高，較去年同期成長 3%。銷售成長主要是由銷售增加所推動的，包括向市場推出新產品以及提高價格以抵消通貨膨脹。

Moving to gross margin, this is the third straight quarter we've seen gross margin improve. Our Q4 adjusted gross margin of 39.3%, a 640-basis-point increase compared to last year. The year-over-year margin improvement was primarily due to lower cost inventory, cost savings initiatives, and pricing actions to offset inflation. Our Q4 adjusted gross margin gets us back to margin levels we had in 2018 for tariffs and inflation.

談到毛利率，這是我們看到毛利率連續第三個季度有所改善。第四季調整後毛利率為 39.3%，比去年增加 640 個基點。利潤率較去年同期改善主要是由於庫存成本降低、成本節約措施以及抵銷通貨膨脹的定價行動。第四季調整後的毛利率使我們回到了 2018 年關稅和通貨膨脹的利潤水平。

Shifting to SG&A, adjusted SG&A expense was 23.9% of net sales, an increase of 90 basis points compared to last year. Higher wages, benefits, and variable compensation expenses were the primary drivers of the (technical difficulty)

轉向 SG&A，調整後的 SG&A 費用佔淨銷售額的 23.9%，比去年增加 90 個基點。更高的工資、福利和可變補償費用是成長的主要驅動力。（技術難度）

Our Q4 adjusted operating income was $76 million, a 59% increase. Adjusted operating margin was 15.4%, up 550 basis points year over year. And finally, adjusted diluted EPS in Q4 was $1.57, a record and a 69% increase versus last year. The growth was mainly due to the increase in adjusted operating income, partially offset by a higher tax rate and higher interest expense resulting from an increase in the variable rate of our credit facility.

第四季調整後營業收入為 7,600 萬美元，成長 59%。調整後營業利益率為 15.4%，較去年成長 550 個基點。最後，第四季調整後攤薄每股收益為 1.57 美元，創歷史新高，較去年增長 69%。這一增長主要是由於調整後營業收入的增加，部分被較高的稅率和信貸額度可變利率增加導致的較高利息費用所抵消。

Please turn to slide 9. Full-year net sales of $1.93 billion were a record and an increase of 13% year over year. Sales growth is primarily driven by the addition of SuperATV, price increases to offset inflation, and the introduction of new products to market. The net sales growth, excluding the impact of acquisitions, was 3%.

請翻到投影片 9。全年淨銷售額達到創紀錄的 19.3 億美元，年增 13%。銷售成長主要由 SuperATV 的增加、抵消通貨膨脹的價格上漲以及向市場推出新產品推動。剔除收購影響後的淨銷售額成長為 3%。

Full-year adjusted gross margin increased 290 basis points to 36.1%, the same drivers that power Q4 margin improvements also drove the full-year margin expansion. Adjusted SG&A as a percentage of net sales was 24%, up 280 basis points (sic - please see slide 19, "270 basis points") year over year. A higher percentage was due to the inflationary impact on wages, benefits, and incentive compensation expenses, an increase in interest rates on our factoring programs as well as the addition of SuperATV. Our 2023 adjusted operating income was $233 million, an increase of 14%. And finally, our adjusted diluted EPS was $4.54, a 3% decrease due to the higher interest expense and a higher tax rate.

全年調整後毛利率成長 290 個基點，達到 36.1%，推動第四季利潤率改善的驅動因素也推動了全年利潤率的擴張。調整後的 SG&A 佔淨銷售額的百分比為 24%，年成長 280 個基點（原文如此 - 請參閱投影片 19，「270 個基點」）。較高的百分比是由於通貨膨脹對工資、福利和激勵補償費用的影響、我們的保理計劃利率的增加以及 SuperATV 的增加。2023 年調整後營業收入為 2.33 億美元，成長 14%。最後，我們調整後的攤薄每股收益為 4.54 美元，由於利息費用和稅率較高，下降了 3%。

Let's move on to review our segment results starting on slide 10. Q4 light duty net sales were $386 million, a 4% increase. Overall, light duty industry fundamentals remain strong and are encouraged by our performance in the quarter, recognizing we're up against a strong prior-year comparison. Compared to 2021, Q4 net sales were up 13%, and user demand for our products remains healthy. Based on our estimates, our customer point of sale outpaced our shipments in the quarter.

讓我們繼續回顧一下從幻燈片 10 開始的細分結果。第四季輕型車淨銷售額為 3.86 億美元，成長 4%。總體而言，輕型汽車行業的基本面依然強勁，並受到我們本季業績的鼓舞，認識到我們與去年同期相比表現強勁。與 2021 年相比，第四季淨銷售額成長了 13%，用戶對我們產品的需求仍然健康。根據我們的估計，本季我們的客戶銷售點超過了我們的出貨量。

Light duty adjusted operating margin was 16.6% in Q4, a 750-basis-point improvement year over year. High cost inventory due to rapid inflation in 2022 created margin pressures that lasted into Q1 of 2023 but have abated over the last three quarters. Pricing actions and cost savings initiatives to cover these inflationary costs also contributed to the margin improvement. After a challenging first half, the light duty business had a strong rebound.

第四季輕型車調整後營業利益率為 16.6%，較去年同期提高 750 個基點。2022 年快速通膨導致的高成本庫存造成了利潤率壓力，這種壓力持續到 2023 年第一季度，但在過去三個季度有所緩解。為彌補這些通膨成本而採取的定價行動和成本節約措施也有助於提高利潤率。在經歷了充滿挑戰的上半年後，輕型車業務強勁反彈。

Moving on to heavy duty on slide 11. Net sales were $57 million in Q4, a 9% reduction year over year against a strong prior-year comparison. During Q4 of 2022, we benefited from the customers restocking inventories as global supply chains rebound from the impact of the global pandemic. In addition, we believe trucking demand was lower in 2023, resulting in reduced demand for replacement parts.

繼續幻燈片 11 上的重型工作。第四季淨銷售額為 5,700 萬美元，與去年同期相比下降 9%。2022年第四季度，隨著全球供應鏈從全球大流行的影響中反彈，我們受益於客戶補充庫存。此外，我們認為 2023 年卡車運輸需求較低，導致更換零件的需求減少。

Heavy duty adjusted margin was 6.8%, a 240-basis-point decrease year over year. Margin continued to be negatively impacted by the sell-through of high cost inventory that was sourced during peak inflationary times. As we work our way through this inventory and the cost savings and pricing actions taken to offset these inflationary costs go into effect, we expect to see margin expansion like the 380-basis-point increase we saw in Q4 compared to Q3.

重型汽車調整後利潤率為 6.8%，年減 240 個基點。利潤率繼續受到通膨高峰時期採購的高成本庫存的銷售的負面影響。當我們努力清理這些庫存以及為抵消這些通膨成本而採取的成本節約和定價行動生效時，我們預計利潤率會出現擴張，就像我們在第四季度看到的那樣，與第三季度相比，利潤率增加了380 個基點。

Finally, as Kevin discussed earlier, we've made investments to grow sales and improve margins long term, which may negatively impact operating margin in the near term.

最後，正如凱文之前討論的那樣，我們進行了投資以增加銷售額並提高長期利潤率，這可能會對短期內的營運利潤率產生負面影響。

Shifting to specialty vehicle on slide 12, our Q4 net sales were $51 million, up 3% year over year. 2023 was our first full year of ownership of SuperATV, and we're proud of its performance. 2023 was a challenging year for the specialty vehicle industry overall. That's particularly true for the sales of discretionary accessories, which we estimate make us 50% of this segment's sales. Discretionary accessory sales are partially driven by dealer sales of new machines, which we estimate were slightly down year over year. So while we experienced softness due to these market factors, we grew 3% against these headwinds.

轉向投影片 12 上的特種車輛，我們第四季的淨銷售額為 5,100 萬美元，年增 3%。 2023 年是我們擁有 SuperATV 的第一個完整年份，我們對其性能感到自豪。 2023 年對於整個特種車輛產業來說是充滿挑戰的一年。對於可選配件的銷售尤其如此，我們估計該配件佔該細分市場銷售額的 50%。可自由支配配件的銷售部分受到新機器經銷商銷售的推動，我們估計新機器的銷售同比略有下降。因此，儘管我們因這些市場因素而經歷了疲軟，但我們在這些不利因素的影響下實現了 3% 的成長。

We accomplished this growth through initiatives focused on growing our nondiscretionary repair parts business, capturing share in the retail channel through promotional initiatives and expanding our dealer network, specifically in the Western region. Specialty vehicle operating margin was 15.7%, a 150-basis-point decline year over year due to one-time noncash charges. Absent these charges, operating margin would have been consistent year over year.

我們透過專注於發展非全權維修零件業務、透過促銷活動佔領零售通路份額以及擴大經銷商網路（特別是在西部地區）的舉措來實現這一成長。由於一次性非現金費用，專用車營業利潤率為 15.7%，年減 150 個基點。如果沒有這些費用，營業利潤率將與去年同期保持一致。

Switching our attention to cash flow, as you can see on slide 13, Q4 free cash flow was $49 million a healthy increase from the $2 million of cash used last year. The improvement was driven by a $32 million increase in net income compared to 2022. Capital expenditures in the quarter of $11 million were $3 million lower than last year, which included investments to fit out our new distribution center in Whiteland, Indiana.

將我們的注意力轉向現金流，正如您在幻燈片 13 中看到的那樣，第四季度的自由現金流為 4,900 萬美元，比去年使用的 200 萬美元現金有了健康增長。與 2022 年相比，淨利潤增加了 3,200 萬美元，推動了這項改善。本季的資本支出為 1,100 萬美元，比去年減少了 300 萬美元，其中包括裝修我們位於印第安納州懷特蘭的新配送中心的投資。

Full-year free cash flow of $165 million was a record and a $161 million increase over 2022. Primary driver for the improvement was inventory, which decreased $119 million. Lower freight and material costs, combined with the reduction in our safety stock levels, made possible by a rebound in the global supply chain drove our inventory load.

全年自由現金流達到創紀錄的 1.65 億美元，比 2022 年增加 1.61 億美元。改善的主要動力是庫存，減少了 1.19 億美元。全球供應鏈的反彈使貨運和材料成本下降，加上安全庫存水準降低，推動了我們的庫存負荷。

I'll turn next to our balance sheet and liquidity on slide 14. During the year, we used our record operating cash flows to pay down $159 million of debt. As of December 31, our net debt was $540 million, and our net leverage ratio was 1.87 times adjusted EBITDA. Additionally, we had $543 million of total liquidity, including cash on hand. We believe our strong balance sheet positions us well to execute our strategic initiatives and provides us with flexibility in the event of unforeseen challenges.

接下來我將討論投影片 14 上的資產負債表和流動性。這一年，我們用創紀錄的營運現金流償還了 1.59 億美元的債務。截至 12 月 31 日，我們的淨負債為 5.4 億美元，淨槓桿比率為調整後 EBITDA 的 1.87 倍。此外，我們還有 5.43 億美元的總流動資金，包括手頭現金。我們相信，我們強大的資產負債表使我們能夠很好地執行我們的策略性舉措，並為我們在遇到不可預見的挑戰時提供靈活性。

As shown on slide 15, our capital allocation strategy strikes a balance between reinvestment in the business, inorganic growth, and return of capital to shareholders. Our longer-term goal is to maintain leverage below 2 times adjusted EBITDA of less than 3 times in the first year following an acquisition. We'll continue to support our product innovation as a primary investment objective by funding necessary R&D and capital expenditures. We remain opportunistic regarding M&A, but ultimately consider it, of course, supplement to our organic growth. In addition, we believe using some of our free cash flow to opportunistically repurchase shares is a good use of our capital and other higher return opportunities aren't available.

如投影片 15 所示，我們的資本配置策略在業務再投資、無機成長和股東資本回報之間取得了平衡。我們的長期目標是在收購後的第一年將槓桿率維持在 2 倍以下，調整後的 EBITDA 不超過 3 倍。我們將繼續透過資助必要的研發和資本支出來支持我們的產品創新，並將其作為主要投資目標。我們在併購方面仍然持機會主義態度，但最終當然認為這是我們有機成長的補充。此外，我們認為，利用部分自由現金流來機會性地回購股票是對我們資本的良好利用，並且沒有其他更高回報的機會。

Before I shift to guidance, a one final point on our performance. We're proud of our strong results in 2023, but are always striving to do better. Following the integration of two sizable acquisitions over the last few years, combined with being more efficient now that we're back to more normal operating conditions, we determined there was an opportunity to drive further efficiencies across the company. As a result of that assessment, in the first week of February, we enacted a company-wide reduction in workforce program to streamline our business. We don't expect this program to have a negative impact on our innovation, new product efforts, or our ability to serve our customers. The estimated charge for this program is $5 million, and we forecast that it will yield $10 million of annualized savings. The expected partial year savings impact in this program is included in our 2024 guidance. The one-time $5 million charge will be included in our Q1 diluted EPS, but excluded from adjusted diluted EPS.

在我轉向指導之前，最後一點是關於我們的表現。我們為 2023 年取得的強勁成果感到自豪，但始終努力做得更好。經過過去幾年的兩次大規模收購整合，再加上現在我們已經恢復到更正常的營運條件，效率更高，我們認為有機會進一步提高整個公司的效率。根據評估結果，我們在二月的第一周頒布了全公司範圍的裁員計劃，以精簡我們的業務。我們預計該計劃不會對我們的創新、新產品開發或服務客戶的能力產生負面影響。該計劃的預計費用為 500 萬美元，我們預計每年可節省 1000 萬美元。該計劃預期的部分年度節省影響已包含在我們的 2024 年指導中。一次性 500 萬美元費用將包含在我們第一季的稀釋每股收益中，但不包括在調整後的稀釋每股收益中。

Now, I'd like to share our 2024 guidance included on slide 16. We expect continued strong fundamentals in the light duty market in 2024 for shipments and customer POS more closely align as we move through the year, but still lagging in Q1. Seasonally, Q1 is also the light duty segment's lowest quarter of the year. Because of these factors, we anticipate relatively flat sales growth in Q1 before we see improvement in Q2 and through the second half of the year.

現在，我想分享投影片 16 中包含的 2024 年指南。我們預計 2024 年年輕型商用車市場的基本面將持續強勁，隨著這一年的推移，出貨量和客戶 POS 將更加緊密地結合在一起，但仍落後於第一季。從季節性來看，第一季也是輕型車市場全年最低的季度。由於這些因素，我們預計第一季的銷售成長相對平穩，然後第二季和下半年才會有所改善。

For heavy duty, after a challenging 2023, we expect the soft market to continue through the first half of 2024. In this environment, we're focused on taking share and growing our business with trucking fleets who rely on us to help improve their bottom lines. Driving new product growth will also be a key area of focus.

對於重型汽車來說，在經歷了充滿挑戰的 2023 年後，我們預計疲軟的市場將持續到 2024 年上半年。在這種環境下，我們專注於與依賴我們幫助提高利潤的貨運車隊分享份額並發展我們的業務。推動新產品成長也將是重點領域。

Finally, we expect to see a similar first-half trend play out the specialty vehicle market. The dealer channel is expecting a slow rebound in sales through the first half of 2024. We also expect demand in the direct-to-consumer business to be relatively flat in the first half. However, the specialty vehicle team is focused on taking share from new product launches, geared around nondiscretionary repair parts, adding new direct-to-consumer customers, and building new dealer relationships.

最後，我們預期特種車輛市場將出現類似的上半年趨勢。經銷商通路預計2024年上半年銷售將緩慢反彈。我們也預期上半年直接面向消費者業務的需求將相對穩定。然而，特種車輛團隊專注於從新產品發布中獲取份額，以非全權維修零件為中心，增加新的直接面向消費者的客戶，並建立新的經銷商關係。

Based on these expectations, we're targeting consolidated full-year net sales growth of 3% to 5%. We expect our 2024 adjusted diluted EPS to range from $5.40 to $5.70 a share, or a 19% to 26% increase. Over the course of the year, we expect operating margin improvement as the savings from the Q1 reduction in the workforce program and other cost savings initiatives take hold.

基於這些預期，我們的目標是全年綜合淨銷售額成長 3% 至 5%。我們預計 2024 年調整後稀釋每股盈餘將在每股 5.40 美元至 5.70 美元之間，成長 19% 至 26%。在這一年中，我們預計隨著第一季勞動減少計畫和其他成本節約措施所節省的成本得以落實，營業利潤率將有所改善。

The benefits of these programs are expected to be partially offset by investments we're making to further diversify our supply chain as well as higher inflationary costs such as ocean freight and employee benefit costs. Anticipating the question may be forthcoming, thought I'd get out ahead of it and let you know that we're not issuing guidance at the segment level.

這些計劃的好處預計將被我們為進一步實現供應鏈多元化而進行的投資以及海運費和員工福利成本等更高的通膨成本所抵消。預計這個問題可能即將到來，我想我應該提前告訴您，我們不會在細分市場層面發布指導。

With that, I'll turn it back over to Kevin to conclude. Kevin?

至此，我將把它轉回給凱文來結束。凱文？

Thanks, David. As we close out our fourth quarter and move forward into 2024, I'm confident in our ability to continue to drive innovation, to capitalize on the breadth of our diverse portfolio across segments, and to draw on the many strengths and deep commitment of our team members. As we've proven year after year, we've continually found new ways to grow our business through new product categories, new markets and customer channels, and our operating discipline.

謝謝，大衛。隨著我們第四季度的結束並邁向 2024 年，我對我們繼續推動創新、利用我們跨細分市場的多元化投資組合的廣度以及利用我們的眾多優勢和堅定承諾的能力充滿信心。團隊成員。正如我們年復一年所證明的那樣，我們不斷尋找透過新產品類別、新市場和客戶管道以及我們的營運紀律來發展業務的新方法。

But now, I would like to open the call for questions. Operator?

但現在，我想開始提問。操作員？

(Operator instructions) Scott Stember, Roth MKM.

（操作員說明）Scott Stember，Roth MKM。

Good morning, gentlemen, and thanks for taking my questions. Could you guys maybe talk about the cadence of -- and demand throughout the quarter? We heard from some retailers, a competitor of yours talked about how December things started to dip, but seems like things are coming back in January. And again, this is on the light duty side. Maybe just comment on it.

早安，先生們，感謝您提出我的問題。你們能否談談整個季度的節奏和需求？我們從一些零售商那裡聽說，你們的競爭對手談到 12 月的情況開始下滑，但似乎 1 月情況又會好轉。再說一次，這是在輕型方面。也許只是評論一下。

Sure, Scott. Great question. Yeah, we actually saw a very stable cadence as we move through the fourth quarter. Our POS or out-the-door sales of our products to our customers was actually up about 6.5% in the quarter. And if you look at December, it was roughly around that same amount. So we didn't -- we kind of saw the same cadence. I'd also point out that on the LD side, our sales growth was only 4%. So we are still running a gap of POS to sell in growth as a result of inventory adjustments, kind of across our customer base.

當然，斯科特。很好的問題。是的，當我們進入第四季度時，我們實際上看到了非常穩定的節奏。本季我們的 POS 或產品戶外銷售實際上成長了約 6.5%。如果你看看 12 月份，你會發現這個數字大致相同。所以我們沒有——我們看到了同樣的節奏。我還想指出的是，在 LD 方面，我們的銷售額成長率只有 4%。因此，由於我們整個客戶群的庫存調整，我們的 POS 銷售成長仍然存在差距。

Got it. And next question, that 6.5%, is that on a same-day basis, adjusting for the extra or one less week this year? And if not, what would that have been on a same-day basis?

知道了。下一個問題，即 6.5%，是以當天計算，根據今年多一周還是少一周進行調整？如果不是，那麼當天的情況會變成怎樣？

No, that's adjusted, Scott.

不，已經調整了，斯科特。

Okay.

好的。

So it's apples to apples.

所以這是蘋果對蘋果。

Perfect. All right. I'll get back into the queue. Thank you.

完美的。好的。我會回到隊列中。謝謝。

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Hey, good morning, guys.

嘿，早上好，夥計們。

Hey, Bret.

嘿，布雷特。

Hey, Bret.

嘿，布雷特。

On the sales growth forecast for '24, 3% to 5%, could you talk about what you expect to be price in that?

關於 24 年的銷售成長預測，3% 到 5%，您能談談您預計的價格是多少嗎？

Yeah, good question, Brett. There's certainly solid growth in 3% to 5%, but there's some volume in there. There's some price in there. But for competitive reasons, Bret, we don't break out the split, but included in the 3% to 5% is some volume along with some pricing.

是的，好問題，布雷特。肯定會有 3% 到 5% 的穩健成長，但也有一定的量。裡面有一些價格。但出於競爭原因，布雷特，我們不會打破這種分割，但 3% 到 5% 中包括一些銷量和一些定價。

I'll just add to that, Bret, as we kind of look at 2023, we saw roughly the same thing. And there's clearly some price growth across the industry in 2023. But we actually saw unit growth, both for the full year and for the fourth quarter.

Bret，我想補充一點，當我們展望 2023 年時，我們看到了大致相同的情況。到 2023 年，整個行業的價格顯然會出現一些增長。但我們實際上看到了全年和第四季的單位成長。

Okay, great. And then on the light duty business, could you talk about in that mix, how much is new to the aftermarket sort of proprietary product versus things like full line products more in line with your chassis business? Because just we can break out what's a higher margin mix versus sort of more of the middle of the road.

好的，太好了。然後在輕型業務方面，您能否談談在這種組合中，與更符合您的底盤業務的全系列產品相比，售後市場專有產品有多少新內容？因為只有我們才能分辨出什麼是更高的利潤組合，什麼是更多的中間利潤。

Yeah. We don't break out kind of different categories in that fashion, Bret, publicly. I will say, though, if you kind of look at the SKUs that we launch in a year like say 2023, for example, we launched just over 6,000 parts. Roughly 30% of those SKUs would be considered new to the aftermarket.

是的。布雷特，我們不會以這種方式公開劃分不同的類別。不過，我想說的是，如果你看看我們在 2023 年這樣的一年推出的 SKU，你會發現我們推出的零件僅超過 6,000 個。這些 SKU 中約 30% 被視為售後市場的新產品。

Okay. Want to tell me what the gross margin spread in that 30% versus the balances?

好的。想告訴我這 30% 的毛利率與餘額的差值是多少嗎？

Yeah. No, Bret. We don't break out again margins either by customer or by category,

是的。不，布雷特。我們不會再按客戶或類別細分利潤率，

But we're doing calls now. We're going to get all this new information. I appreciate it, guys.

但我們現在正在打電話。我們將獲得所有這些新資訊。我很感激，夥計們。

Thanks, Bret.

謝謝，布雷特。

(Operator instructions) Gary Prestopino, Barrington Research.

（操作員說明）Gary Prestopino，Barrington Research。

Hi. Good morning, Kevin and Dave. Hey, Dave, one thing you didn't touch upon in your commentary was factoring in the quarter. Could you give us some idea of how much you factored, and what was the cost into SG&A for the factoring?

你好。早上好，凱文和戴夫。嘿，戴夫，你在評論中沒有提到的一件事是考慮到本季。您能否告訴我們您保理了多少費用，以及保理的 SG&A 成本是多少？

Sure, Gary. And as you know, that will all be included in the K, but the factoring in the quarter was $12.6 million in Q4 '23 compared to $14.2 million last quarter, so down $1.6 million. And it's basically all volume, Gary. The rate was essentially the same year over year. But we factored $236 million, which was down $34 million from last year.

當然，加里。如您所知，這一切都將包含在 K 中，但 23 年第 4 季的保理成本為 1,260 萬美元，而上季度為 1,420 萬美元，因此減少了 160 萬美元。基本上都是音量，加里。此比率比去年同期基本相同。但我們考慮了 2.36 億美元，比去年減少了 3,400 萬美元。

Okay. And then as we go forward, if you just say hypothetically keep the same factoring level on a quarterly basis, if you get a 25-basis-point decline in interest rates, how is that going to impact the expenses related to factoring?

好的。然後，當我們繼續前進時，如果您假設每季保持相同的保理水平，如果利率下降 25 個基點，這將如何影響與保理相關的費用？

Yeah. So I can give you -- if you get a 1% change in factoring costs on an annual basis, it's about $8 million, Gary. So quarter point would be roughly $2 million.

是的。所以我可以告訴你，如果保理成本每年變動 1%，則約 800 萬美元，蓋瑞。所以四分之一點大約是 200 萬美元。

Okay. That's really helpful. Thank you. I'll get back in the queue.

好的。這真的很有幫助。謝謝。我會回到隊列中。

Sure.

當然。

Scott Stember, ROTH MKM.

斯科特·斯坦伯，羅斯 MKM。

Just a quick follow-up. Just looking at the guidance from an operating margin standpoint, you guys were running, I guess, north of 15% coming out of the fourth quarter, coming out of the year. But if you look at your guidance, it looks like it's expecting less than that a couple of 100 basis points. Are you guys just being conservative, or is there anything else out there that we should be aware of?

只是快速跟進。僅從營業利潤率的角度來看，我猜，今年第四季的營業利潤率將超過 15%。但如果你看看你的指引，你會發現它的預期比這少了幾個 100 個基點。你們只是保守，還是還有其他我們應該注意的事情？

No, Scott. I think if you look at the guidance, the top line 3% to 5% growth. And as we said in the prepared remarks, we'd expect there to be some operating margin improvement as well. If you look at that, there's going to be the benefit of the reduction in workforce and the cost savings initiatives that will be partially offset by some of the investments we're making to diversify our supply chain as well as some inflationary pressures, particularly ocean freight and benefits. But now, it's -- there's growth included in the guide.

不，斯科特。我認為如果你看一下指導，你會發現收入增加了 3% 到 5%。正如我們在準備好的評論中所說，我們預計營業利潤率也會有所改善。如果你看看這一點，你會發現勞動力減少和成本節約舉措帶來的好處將被我們為實現供應鏈多元化而進行的一些投資以及一些通貨膨脹壓力（特別是海洋）所部分抵消。運費和福利。但現在，指南中包含了成長內容。

Got it. Thank you.

知道了。謝謝。

Sure.

當然。

Gary Prestopino, Barrington Research.

加里‧普雷斯托皮諾，巴靈頓研究中心。

Yeah. I think I'm going to try and ask this question on new SKUs, a different way than what was asked. Historically, about 17% of your sales have come from new SKUs over the last three years. Did that change materially throughout 2023, and you're expecting that to kick up in 2024, given your ability to get new products out in the market?

是的。我想我會嘗試在新的 SKU 上提出這個問題，採用與提問方式不同的方式。從歷史上看，您約 17% 的銷售額來自過去三年的新 SKU。考慮到您有能力將新產品推向市場，您預計這種情況會在 2024 年發生嗎？這種情況在 2023 年會發生重大變化嗎？

Hey, Gary, it's Kevin. Good question. Yeah, we haven't disclosed that number in a few years, but I would say the model has not changed nor the cadence of new products as a percent of our total business. I mean, I would say that the one factor that has changed over the last few years is that our chassis business, which is a large, mature, slower growing line is a much bigger portion of our total business. But in terms of our focus on kind of small niche categories, new the aftermarket focus, that has not changed, and frankly, the volume has not changed.

嘿，加里，我是凱文。好問題。是的，我們已經有幾年沒有透露這個數字了，但我想說的是，模型沒有改變，新產品占我們總業務的百分比也沒有改變。我的意思是，我想說，過去幾年發生變化的一個因素是我們的底盤業務，這是一個大型、成熟、成長緩慢的產品線，在我們總業務中所佔的比例要大得多。但就我們對小眾類別的關注而言，新的售後市場關注點並沒有改變，坦白說，數量也沒有改變。

Okay. And then just from what you're saying about with your guidance with the quarterly sequence. Stronger top line in the back half of the year and continued growth in adjusted EPS in the back half of the year, despite some -- you have some challenging comps there. Because in 2023, you pulled off some of the numbers in the back half of the year?

好的。然後就根據您所說的話以及您對季度順序的指導。儘管存在一些挑戰，但今年下半年的營收更加強勁，調整後的每股盈餘持續成長。因為在2023年，你在下半年就完成了一些數字？

Yeah, Gary. I think if you look at light duty, we said it's going to be relatively flattish in Q1, improvement in Q2 into the second half. And then both heavy and specialty, we expect to see a softer first half with improvements coming in the second half. So yeah, I think if you look at that, the pacing is going to be -- the growth is going to come more in the second half than the first half.

是的，加里。我認為，如果你看一下輕型負載，我們說第一季將相對持平，第二季到下半年將有所改善。然後，無論是重型還是特種，我們預計上半年會更加疲軟，下半年會有所改善。所以，是的，我認為如果你看一下，下半年的成長將比上半年更多。

Okay. Thank you.

好的。謝謝。

Sure.

當然。

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Hey. On that same topic, I guess as we look at flat light duty and the start of the year, and I think you'd said heavy duty challenging and especially slow in the first half, should we not factor in EBIT expansion in the first half? Most of this growth is going to come when you get sales leverage going into the second half of the year?

嘿。在同一主題上，我想，當我們審視輕型卡車和今年年初時，我認為您說過重型卡車具有挑戰性，並且上半年特別緩慢，我們是否應該考慮上半年的息稅前利潤擴張？當你在下半年獲得銷售槓桿時，大部分成長將會出現嗎？

Yeah, Bret. The first quarter is typically our lowest quarter, mainly driven by the light duty segment. But now, the margin growth will be -- after the first quarter will be ratable over the course of the balance of the year. But obviously, come in a little bit heavier in the second half.

是的，布雷特。第一季通常是我們業績最低的季度，主要是由輕型車市場推動的。但現在，利潤率成長將在第一季之後在今年剩餘時間內進行評估。但顯然，下半場的重量要重一些。

Okay. And then you talked about $119 million in inventory safety stock reduction. Are your fill rates, or I guess, as you measure your fill rates consistent? Is your flow of product improved enough that you don't need to carry that? Or has it had any impact on your availability?

好的。然後您談到了 1.19 億美元的庫存安全庫存削減。或者我猜，當您測量填充率時，您的填充率是否一致？您的產品流程是否已足夠改善，以至於您不需要攜帶它？或者它對您的可用性有任何影響嗎？

Yeah. I mean, Bret, it's Kevin. I mean, our fill rates are back to kind of pre-supply chain disruption levels. The reason that we had to take on additional inventory was because our lead times had just grown so much getting a product from Asia, manufactured on a boat, find a container on the ocean, getting through the ports, getting to our locations was taking a lot longer than in kind of the-pre supply chain disruption. That's kind of back to normal. So we were able to just reduce back to our normal safety stock levels. Plus you also had a lot of costs running off the balance sheet as well. That inflation that gets hung up on the balance sheet and inventory has rolled off as well.

是的。我是說，布雷特，是凱文。我的意思是，我們的填充率回到了供應鏈中斷前的水平。我們必須增加庫存的原因是，我們的交貨時間增長了很多，從亞洲獲取產品，在船上製造，在海上找到集裝箱，通過港口，到達我們的地點需要花費很長的時間。比供應鏈中斷之前的情況要長得多。這有點恢復正常了。因此，我們能夠將庫存減少到正常的安全庫存水準。另外，資產負債表上還有很多成本。影響資產負債表和庫存的通膨也已經下降。

Okay. And I guess on that same supply chain question, you talked about, I think some investment in possibly sourcing from new markets. Is that something -- I guess, could you give us some updates as far as where we are alternative low cost supply markets versus where you are today geographically?

好的。我想在同樣的供應鏈問題上，你談到了，我認為可能會從新市場購買一些投資。我想，您能給我們一些關於替代低成本供應市場與您今天的地理位置的最新情況嗎？

Yeah. I mean, it's ongoing, right. It's been ongoing for a couple of years now. We did talk about the investments, which I would categorize as moderate, and those investments have been going on for the better part of two to three years. We have reduced our exposure to China, Taiwan over the last couple of years, and we expect to continue to do that. We're not going to give any details in terms of what percentage, what country. I was just tell you that it's wide-ranging, whether it's a Pac-Rim or India or Mexico or Turkey or other locations around the globe. We continue to look to de-risk our supply chain.

是的。我的意思是，它正在進行中，對吧。這種情況已經持續了幾年了。我們確實討論了投資，我將其歸類為適度投資，這些投資已經持續了兩到三年的大部分時間。過去幾年我們減少了對中國大陸和台灣的投資，我們預計將繼續這樣做。我們不會提供任何有關百分比、國家/地區的詳細資訊。我只是告訴你，它的範圍很廣，無論是環太平洋地區、印度、墨西哥、土耳其或全球其他地方。我們繼續尋求降低供應鏈風險。

Great. Thank you.

偉大的。謝謝。

That does conclude our question-and-answer session. And that does conclude our conference call for today. Thank you for your participation, and you may now disconnect.

我們的問答環節到此結束。我們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。