Dorman Products Inc (DORM) 2024 Q2 法說會逐字稿

Good morning, and thank you for standing by. Welcome to the Dorman Products' second quarter 2024 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

早安，感謝您的支持。歡迎參加 Dorman Products 2024 年第二季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I'd now like to turn the conference over to Alex Whitelam, Dorman's New Vice President of Investor Relations and Risk Management. Sir, please go ahead.

現在我想將會議交給多爾曼新任投資者關係和風險管理副總裁 Alex Whitelam。先生，請繼續。

Thank you. Good morning, everyone. I'm excited to join the team here at Dorman. I'm looking forward to working with you all. Welcome to Dorman's second quarter 2024 earnings conference call.

謝謝。大家早安。我很高興加入多爾曼的團隊。我期待與大家合作。歡迎參加 Dorman 的 2024 年第二季財報電話會議。

I'm joined by Kevin Olsen, Dorman's Chief Executive Officer; and David Hession, Dorman's Chief Financial Officer. Kevin will provide a business update, then David will review the quarterly results, followed by closing remarks from Kevin. After that, we'll open the call for questions.

Dorman 執行長 Kevin Olsen 也加入了我的行列。多爾曼財務長 David Hession。凱文將提供業務更新，然後大衛將審查季度業績，最後由凱文發表閉幕詞。之後，我們將開始提問。

By now, everyone should have access to our earnings release and earnings call presentation, which are available on the Investor Relations portion of our website at dormanproducts.com.

到目前為止，每個人都應該可以訪問我們的收益發布和收益電話會議演示，這些內容可以在我們網站 dormanproducts.com 的投資者關係部分找到。

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 earnings release for important material assumptions, expectations, and factors that may cause 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、收益發布和投資者簡報包含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的10-Q、10-K 和收益發布中的風險因素和警示性聲明，以了解可能導致結果與此類前瞻性陳述中預期和描述的結果存在重大差異的重要假設、預期和因素。

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

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的收益發布所附的時間表和本次收益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。最後，在今天電話會議的問答部分，我們要求所有參與者將自己限制在一個問題和一個後續問題上，如果還有其他問題，請重新加入隊列。

And with that, I'll turn the call over to Kevin.

然後，我會將電話轉給凱文。

Thanks, Alex. Good morning. Thank you for joining us on our second quarter 2024 earnings call.

謝謝，亞歷克斯。早安.感謝您參加我們的 2024 年第二季財報電話會議。

I'm going to begin today with a discussion on the highlights of our quarterly performance on both a consolidated and a segment basis. I'm also going to spend time discussing some of the exciting investments we've made in our operations over the last few years to provide you with insight into how Dorman is innovating not only in product development, but across our entire enterprise.

今天我將首先討論我們在合併和分部基礎上的季度業績亮點。我還將花時間討論過去幾年我們在營運中所做的一些令人興奮的投資，讓您深入了解 Dorman 如何不僅在產品開發方面，而且在我們整個企業中進行創新。

Turn to slide 3. You are following along with our deck. The momentum we saw in the first quarter of the year continued through the second quarter as we delivered another strong set of financial results. Consolidated net sales increased 5% year over year to $503 million, and we achieved a 430-basis point improvement in adjusted operating margin. This margin improvement was a result of higher sales volume, the continued abatement of inflationary costs, and productivity initiatives that drove cost savings.

轉到投影片 3。你正在跟隨我們的套牌。我們在今年第一季看到的勢頭持續到第二季​​度，我們交付了另一組強勁的財務表現。合併淨銷售額年增 5%，達到 5.03 億美元，調整後營業利益率提高了 430 個基點。利潤率的提高是銷售增加、通膨成本持續降低以及推動成本節約的生產力舉措的結果。

Adjusted diluted EPS increased an impressive 65% over the same period last year. Free cash flow of $51 million continued our positive trend, and we utilized it to repay $15 million of debt and repurchased $25 million of our shares. Most importantly, our performance through the first half of the year, along with our outlook for the balance of 2024 prompted us to increase our full-year earnings guidance. David will cover this in a moment.

調整後攤薄每股收益比去年同期成長了 65%，令人印象深刻。5,100 萬美元的自由現金流延續了我們的正面趨勢，我們用它來償還 1,500 萬美元的債務並回購了 2,500 萬美元的股票。最重要的是，我們上半年的業績以及 2024 年剩餘時間的展望促使我們提高了全年獲利指引。大衛稍後會介紹這一點。

Moving on to slide 4, I'll provide some segment observations. In light duty, we continue to be encouraged by positive overall market trends. In addition to the long-term underlying growth trend in the Prime VIO, vehicles aged 8 years to 13 years, which are in the sweet spot of Dorman's repair profile, vehicle miles traveled grew year-over-year and we saw hotter than average temperatures across the US, which often proceeds strong periods of vehicle repairs and part sales.

轉到幻燈片 4，我將提供一些片段觀察。在輕型汽車方面，我們繼續受到積極的整體市場趨勢的鼓舞。除了 Prime VIO 的長期潛在成長趨勢外，車齡為 8 年至 13 年的車輛（處於 Dorman 維修狀況的最佳位置）、車輛行駛里程逐年增長，而且我們看到溫度高於平均水平在美國各地，汽車維修和零件銷售往往處於旺季。

POS, sales of Dorman's products by our customers to end users grew high single digits in the quarter and generally was aligned with Dorman shipments. Excitingly, a large customer made the decision to transition a majority of spend from private label to Dorman branded packaging because they recognize the immense value that end customers place on our brand.

POS，我們的客戶向最終用戶銷售的 Dorman 產品在本季度實現了高個位數成長，並且總體上與 Dorman 的出貨量一致。令人興奮的是，一位大客戶決定將大部分支出從自有品牌轉變為 Dorman 品牌包裝，因為他們認識到最終客戶對我們品牌的巨大價值。

We see this as a validation of the investments we continue to make in innovation, in the quality of our products, and in the market's awareness of the benefits that Dorman brings. Additionally, our light duty business continues to drive significant value through its innovation strategy.

我們認為這是對我們繼續在創新、產品品質以及市場對 Dorman 帶來的好處的認識方面進行投資的驗證。此外，我們的輕型業務繼續透過其創新策略推動巨大的價值。

During the quarter, we deployed hundreds of new products, including a number of new to the aftermarket parts. One good example from the complex electronics portfolio was the keyless entry keypad. This component is designed to match the fit, function, and performance of the original exterior keypad. Finally, we took several critical steps in our continued DC automation journey that I'll discuss in a bit.

在本季度，我們部署了數百種新產品，其中包括許多新的售後零件。複雜電子產品組合中的一個很好的例子是免鑰匙進入鍵盤。此組件的設計與原始外部鍵盤的配合、功能和性能相符。最後，我們在持續的 DC 自動化之旅中採取了幾個關鍵步驟，我將在稍後討論。

Turning to heavy duty, the freight industry continued to be challenged. We're expecting this sector softness to remain through the rest of the year, with few signs that we'll see an improvement before early 2025. Sequentially, however, for the second straight quarter, heavy duty sales performance was better than the prior quarter. In terms of initiatives, our execution on the new to the aftermarket playbook in heavy duty is showing strong traction.

轉向重型貨物，貨運業繼續面臨挑戰。我們預計該行業的疲軟狀況將持續到今年剩餘時間，幾乎沒有跡象表明我們會在 2025 年初之前看到改善。然而，連續第二個季度，重型汽車銷售業績優於上一季。在舉措方面，我們對重型售後市場新策略的執行顯示出強大的吸引力。

Our new product development team continues to ramp up its exclusive product releases. A recent product launch that exemplifies this is our diesel particulate filter muffler housing kit, which is a product new to the HD aftermarket and conveniently provides a complete repair kit with all required clamps and gaskets.

我們的新產品開發團隊持續加強其獨家產品的發表力度。最近推出的產品就是我們的柴油機顆粒過濾器消音器外殼套件，它是 HD 售後市場的新產品，可方便地提供帶有所有必需的夾具和墊圈的完整維修套件。

Also, during the quarter, we launched an improved new product commercialization process in our heavy duty business that will allow our customers to deploy the benefits of Dorman's innovations quickly and broadly through their customer bases, helping our customers grow new product sales and driving growth for Dorman.

此外，在本季度，我們在重型業務中推出了改進的新產品商業化流程，這將使我們的客戶能夠透過其客戶群快速且廣泛地部署Dorman 創新的優勢，幫助我們的客戶增加新產品銷售並推動成長多爾曼。

Finally, in specialty vehicle, we're focused on gaining share in a sector that continues to face headwinds. Our strategy of driving growth from new dealers has increased sales year-on-year in this channel.

最後，在特種車輛領域，我們專注於在繼續面臨逆風的行業中獲得份額。我們透過新經銷商推動成長的策略使該通路的銷售額年增。

Similar to our other two segments, new product development, particularly in non-discretionary categories, has also quickly become a reliable source of growth in specialty vehicle business.

與我們的其他兩個細分市場類似，新產品開發，特別是非全權委託類別的新產品開發，也迅速成為專用車業務成長的可靠來源。

On the new product front, we added hundreds of new products into the market during the quarter. An exciting recent launch was the SuperATV Black Ops Ready-Fit Winches, which includes machine-fitted mounts and all wiring pre-installed. For customers or dealers, this cuts down the installation time from 3 hours to just 30 minutes. Additionally, in the quarter, we saw productivity initiatives that drove margin improvement.

在新產品方面，本季我們為市場添加了數百種新產品。最近推出的一款令人興奮的產品是 SuperATV Black Ops Ready-Fit 絞車，其中包括機器安裝支架和預先安裝的所有接線。對於客戶或經銷商來說，這將安裝時間從 3 小時縮短到 30 分鐘。此外，在本季度，我們看到了推動利潤率提高的生產力措施。

We remain confident that demand for new vehicles, accessories, and repair parts will rebound once customers become comfortable as volatility and inflation in the overall economy levels out.

我們仍然相信，隨著整體經濟的波動和通膨趨於平穩，一旦客戶感到滿意，對新車、配件和維修零件的需求將會反彈。

hWe believe we are beginning to see light at the end of the tunnel, with specialty vehicle manufacturers signaling that inventory destocking efforts at dealers are nearly complete. This suggests that wholesale shipments to dealers are coming back in line, the retail sales to customers with current inventory stock levels back to pre-COVID levels.

我們相信，我們已經開始看到隧道盡頭的曙光，特種車輛製造商表示經銷商的庫存去庫存工作已接近完成。這表明向經銷商的批發發貨正在恢復正常，向客戶的零售銷售則以當前庫存水準恢復到新冠疫情前的水準。

Next, as I mentioned in my opening remarks, I'm excited to share with you how we're deploying innovation not only in new product development, but across our entire enterprise. In late 2020, we undertook a strategic review of our operations footprint with the goal of ensuring that our assets and capabilities were aligned with the ambitious commercial growth plans that we had set.

接下來，正如我在開場白中提到的，我很高興與您分享我們如何不僅在新產品開發中，而且在整個企業中部署創新。2020 年底，我們對我們的營運足跡進行了策略審查，目標是確保我們的資產和能力與我們制定的雄心勃勃的商業成長計劃保持一致。

We recognized that our business was becoming more complex as customer volume and service level demands were growing. This required excellence in multiple modes of operations fulfillment in order to continue serving our customers at a level that they rightfully demand.

我們認識到，隨著客戶數量和服務水準需求的不斷增長，我們的業務變得越來越複雜。這需要多種營運模式的卓越履行，以便繼續按照客戶合理要求的程度為他們提供服務。

It quickly became clear that our old ways of operating were not sustainable in this new environment and that without innovation, we would be facing space and labor constraints that could curtail our ability to scale and grow. We decided that we needed to evaluate implementing best-in-class capabilities and automation to maintain our operations ability to execute our commercial growth.

很快我們就發現，我們舊有的運作方式在這個新環境中是不可持續的，如果沒有創新，我們將面臨空間和勞動力的限制，這可能會削弱我們的規模和成長能力。我們決定需要評估實施一流的功能和自動化，以維持我們執行商業成長的營運能力。

Turning to slide 6, I'll discuss some of the solutions that we've implemented. First, let me say that two of our largest warehouses in Portland, Tennessee, and Warsaw, Kentucky, have been transformed in terms of how the flow and processes of the sites have been organized and optimized.

轉到投影片 6，我將討論我們已經實施的一些解決方案。首先，我要說的是，我們位於田納西州波特蘭和肯塔基州華沙的兩個最大的倉庫在站點流程和流程的組織和優化方面已經發生了轉變。

I'm truly proud of our operations contributors' creativity in reimagining their processes, their endorsement of what could have been a threatening set of changes in their alignment with and receptivity of their reimagined workflow. They embrace these investments as a force multiplier, allowing them to do their job more quickly, accurately, and safely.

我真的為我們的營運貢獻者在重新構想流程方面的創造力感到自豪，他們對他們重新構想的工作流程的一致性和接受度方面可能具有威脅性的一系列變化表示認可。他們將這些投資視為力量倍增器，使他們能夠更快、更準確、更安全地完成工作。

We have deployed a fleet of autonomous mobile robots that reduce the time our contributors spend traveling through our countless rows of products. These AMRs are on track to complete 200,000 miles of travel this year, with each mile representing approximately 15 minutes of labor that can now be applied by our contributors to higher function tasks.

我們部署了一系列自主移動機器人，以減少貢獻者瀏覽無數產品的時間。這些 AMR 今年預計將完成 200,000 英里的行程，每英里代表大約 15 分鐘的勞動，現在我們的貢獻者可以將其應用於更高功能的任務。

We have also deployed a set of vertical lift modules that operate like massive parts vending machines. These machines substantially reduce our parts storage footprint requirements and also improve fixed cycle times by approximately 38%.

我們還部署了一套垂直升降模組，其運作方式類似於大型零件自動販賣機。這些機器大大減少了我們的零件儲存佔地面積要求，並將固定週期時間縮短了約 38%。

Maybe most exciting, we're in the process of implementing a state-of-the-art warehouse execution system software package. It ties all of our investments together, allowing us to combine both automation equipment and people seamlessly, and is expected to provide the scalability and flexibility to grow and manage our increasingly complex business going forward.

也許最令人興奮的是，我們正在實施最先進的倉庫執行系統軟體包。它將我們所有的投資聯繫在一起，使我們能夠將自動化設備和人員無縫結合，並有望提供可擴展性和靈活性，以發展和管理我們未來日益複雜的業務。

All told, we've invested $14 million in capital and three years of research, design, and implementation of these systems to provide our warehouse contributors and customers with substantial benefits. Once fully utilized and optimized, we expect these projects will yield an annualized net savings of approximately $8 million and provide operational efficiency benefits to Dorman far into the future.

總而言之，我們已經投資了 1400 萬美元的資金和三年的研究、設計和實施這些系統，為我們的倉庫貢獻者和客戶帶來了巨大的好處。一旦充分利用和優化，我們預計這些項目將產生約 800 萬美元的年淨節省，並在未來為 Dorman 帶來營運效率優勢。

While today we're in the early innings with these projects, we're already seeing modest savings improvements compared to last year as light duty's Q2 total operations expense as a percentage of net sales was 80 basis points lower than last year. The team is working hard to continue integrating these systems and we expect to accelerate the savings over time.

雖然今天我們正處於這些項目的早期階段，但與去年相比，我們已經看到了適度的節省改善，因為輕型汽車第二季度的總營運費用佔淨銷售額的百分比比去年低了 80 個基點。團隊正在努力繼續整合這些系統，我們預計隨著時間的推移將加速節省成本。

Now I'll hand off to David to review our Q2 financial performance.

現在我將讓 David 回顧我們第二季的財務表現。

Thanks, Kevin. Turning to slide 7, Q2 consolidated net sales of $503 million, up 5% year over year. This growth was driven by increased demand in our light duty segment, including higher sales of new products. Partially offsetting this growth was the soft market conditions that continue to impact our heavy duty and specialty vehicle business. I'll dive deeper into each of the segments in just a moment.

謝謝，凱文。轉投投影片 7，第二季綜合淨銷售額為 5.03 億美元，較去年同期成長 5%。這一成長是由我們的輕型車領域需求增加所推動的，包括新產品銷售的增加。疲軟的市場狀況持續影響我們的重型和特種車輛業務，部分抵消了這一成長。我稍後將深入探討每個部分。

Adjusted gross margin for the quarter was 39.6%, a 450-basis point increase compared to last year. The year-over-year margin improvement was driven by the easing of inflationary pressures across the businesses and favorable cost savings initiatives, including the ones that Kevin discussed. Adjusted SG&A expense was 24% of net sales, relatively flat compared to the same period last year.

該季度調整後毛利率為 39.6%，較去年增加 450 個基點。利潤率的同比改善是由於各企業通膨壓力的緩解以及有利的成本節約舉措（包括凱文討論的舉措）推動的。調整後的銷售、管理及行政費用佔淨銷售額的 24%，與去年同期相比相對持平。

Adjusted operating income was $79 million in the quarter, a 45% increase from the same period last year. Adjusted operating margin was 15.6%, up 430 basis points year over year, primarily due to the improvement in gross margin.

該季度調整後營業收入為 7,900 萬美元，較去年同期成長 45%。調整後營業利益率為15.6%，較去年成長430個基點，主要得益於毛利率的改善。

And finally, adjusted diluted EPS in Q2 was $1.67, an impressive 65% increase versus last year. The growth was mainly due to the increase in adjusted operating income coupled with lower interest expense and share count reduction, partially offset by a higher tax rate.

最後，第二季調整後攤薄每股收益為 1.67 美元，與去年相比成長了 65%，令人印象深刻。這一增長主要是由於調整後營業收入的增加，加上利息支出的減少和股票數量的減少，但部分被較高的稅率所抵消。

Next, let me provide updates on the quarter for each of our business segments, starting with light duty on slide 8. Q2 light duty net sales were $385 million, a 9% increase year over year. Shipments were generally aligned with customer POS during the quarter, growing high single digits.

接下來，讓我提供每個業務部門的本季最新情況，從投影片 8 上的輕型業務開始。第二季輕型車淨銷售額為 3.85 億美元，較去年同期成長 9%。本季出貨量與客戶 POS 基本一致，呈現高個位數成長。

Our new products continue to drive meaningful sales for the segment. light duty operating margin was 17.1% in Q2, a 550-basis point improvement year over year. As with the overall business, lower-cost inventory and cost-saving initiatives continued to improve margins for the light duty segment.

我們的新產品繼續推動該領域的有意義的銷售。第二季輕型車營業利潤率為 17.1%，年增 550 個基點。與整體業務一樣，低成本庫存和成本節約措施繼續提高了輕型車領域的利潤率。

Moving on to heavy duty on slide 9, net sales were $61 million in Q2, down 11% compared to last year. Like last quarter, Q2 was up against a strong prior year comparable as the COVID-driven inventory restocking peaked in the second quarter of 2023. We are encouraged that the heavy duty business has again managed to drive sequential quarter-over-quarter net sales growth in this environment, partially attributable to the investments we've made in new product development for HD.

轉向幻燈片 9 上的重型，第二季淨銷售額為 6,100 萬美元，比去年下降 11%。與上季一樣，第二季的業績與去年同期相比表現強勁，因為新冠疫情驅動的庫存補貨在 2023 年第二季達到頂峰。我們感到鼓舞的是，在這種環境下，重型業務再次成功推動了環比淨銷售額的連續成長，部分原因在於我們在 HD 新產品開發方面的投資。

Operating margin for heavy duty was 4.4%, down 50 basis points from last year's second quarter, but up 440 basis points sequentially. heavy duty's margin was impacted by the delevering of fixed costs on lower net sales volumes and the investments we have made to drive top- and bottom-line growth over the long term. Sequential improvement in net sales and operating margin are encouraging signs that the team is driving improvements in the business in a challenging market environment.

重型卡車的營業利潤率為 4.4%，比去年第二季下降 50 個基點，但比上一季成長 440 個基點。重型汽車的利潤率受到固定成本去槓桿化、淨銷售下降以及我們為推動收入和利潤長期成長而進行的投資的影響。淨銷售額和營業利潤率的連續改善是令人鼓舞的跡象，表明團隊正在充滿挑戰的市場環境中推動業務改善。

Shifting to specialty vehicles on slide 10, our Q2 net sales were $56 million, a 2% decrease compared to last year. Similar to last quarter, we continue to see higher financing rates and general economic uncertainty creating demand headwinds for the sector. With that said, we believe the business continues to capture share as our sales outpace the estimated mid-single-digit sector decline.

轉向幻燈片 10 上的特種車輛，我們第二季的淨銷售額為 5,600 萬美元，比去年下降 2%。與上季類似，我們繼續看到融資利率上升和總體經濟不確定性為該行業帶來需求阻力。話雖如此，我們相信該業務將繼續佔據市場份額，因為我們的銷售額超過了預期的中個位數的行業跌幅。

As we mentioned in our last call, we remain confident in the long-term opportunity for the specialty vehicle park as alternative transport vehicles continue to generate strong enthusiasm, so we believe this is a temporary challenge. Despite slightly lower sales year over year, specialty vehicle delivered solid margin growth. Q2 operating margin for the business was 17.8%, a 100-basis point increase over the same period last year, driven primarily by cost savings initiatives.

正如我們在上次電話會議中提到的，隨著替代交通車輛繼續產生強烈的熱情，我們對特種車輛公園的長期機會仍然充滿信心，因此我們認為這是一個暫時的挑戰。儘管銷量同比略有下降，但特種車輛實現了穩健的利潤增長。第二季該業務的營業利潤率為 17.8%，比去年同期成長 100 個基點，這主要是由於成本節約措施的推動。

Turning to slide 11, let me take a moment to cover our cash flow. Free cash flow was a healthy $51 million in the quarter, while free cash flow was down 5% compared to last year. This was partially due to cash used for inventory in 2024 versus cash provided in 2023 from significant inventory reduction, offset partially by higher net income.

轉向投影片 11，讓我花點時間介紹我們的現金流。本季自由現金流為 5,100 萬美元，健康，但與去年相比下降了 5%。這部分是由於 2024 年用於庫存的現金與 2023 年因庫存大幅減少而提供的現金有關，但部分被較高的淨利潤所抵消。

In line with our capital allocation strategy and consistent with the last several quarters, we invested $12 million in capital expenditures during Q2. We also repaid $15 million on our credit facility and returned $25 million to shareholders with a repurchase of 272,000 shares at an average price of $91 per share.

根據我們的資本配置策略並與過去幾季保持一致，我們在第二季投資了 1,200 萬美元的資本支出。我們還償還了 1500 萬美元的信貸額度，並以每股 91 美元的平均價格回購了 272,000 股股票，並向股東返還了 2500 萬美元。

I'll turn next to our balance sheet and liquidity on slide 12. As of June 29, our net debt was $500 million, a reduction of $28 million from Q1. Our net leverage ratio was 1.44 times adjusted EBITDA, down from 1.61 times in the first quarter of 2024 and 1.87 times at the end of last year.

接下來我將討論投影片 12 上的資產負債表和流動性。截至 6 月 29 日，我們的淨債務為 5 億美元，比第一季減少 2,800 萬美元。我們的淨槓桿率為調整後 EBITDA 的 1.44 倍，低於 2024 年第一季的 1.61 倍和去年底的 1.87 倍。

Our current leverage is comfortably below our long-term target ceiling of 2 times or less than 3 times in the first year following an acquisition. Additionally, we had $576 million of total liquidity, including cash on hand. We remain confident in the strength of our balance sheet and the capacity we have available to execute our strategic initiatives.

我們目前的槓桿率遠低於收購後第一年 2 倍或低於 3 倍的長期目標上限。此外，我們還有 5.76 億美元的總流動資金，包括手頭現金。我們對我們的資產負債表實力和執行策略性舉措的能力仍然充滿信心。

Now I'd like to discuss our updated guidance for 2024 included on slide 13. As I mentioned, light duty shipments generally were aligned with customer POS throughout the second quarter, and our guidance assumes that the two remain in sync throughout the balance of the year.

現在我想討論投影片 13 中包含的 2024 年更新指南。正如我所提到的，整個第二季度的輕型貨運量通常與客戶 POS 保持一致，我們的指導假設兩者在全年剩餘時間內保持同步。

Favorable market conditions are expected to continue in the second half, with light duty sales growth consistent with our first-half results.

有利的市場狀況預計將在下半年持續，輕型車銷售成長與我們上半年的業績一致。

Our heavy duty business continues to be negatively impacted by a soft trucking market. We expect this softness to continue through the balance of 2024.

我們的重型業務繼續受到軟卡車運輸市場的負面影響。我們預計這種疲軟狀態將持續到 2024 年。

And finally, specialty vehicles and markets continue to face challenges, but we expect the team to continue to focus on taking share for new product launches geared around non-discretionary repair parts, adding new direct-to-consumer customers, and building new dealer relationships. As a result, we expect specialty vehicle sales to be flat to slightly higher in the second half.

最後，特種車輛和市場繼續面臨挑戰，但我們預計團隊將繼續專注於圍繞非全權維修零件的新產品發布、增加新的直接面向消費者的客戶以及建立新的經銷商關係，以獲取市場份額。因此，我們預計下半年專用車銷售將持平或略有上升。

Based on these expectations, we are confirming our consolidated full-year net sales growth guidance of 3% to 5%. We are raising our 2024 adjusted diluted EPS guidance range $6 to $6.20, representing a 32% to 37% increase over the prior year. As we have discussed previously, we've made significant investments in productivity initiatives over the past several years.

基於這些預期，我們確認全年綜合淨銷售額成長指引為 3% 至 5%。我們將 2024 年調整後稀釋每股收益指引範圍提高 6 美元至 6.20 美元，比上一年增長 32% 至 37%。正如我們之前討論的，過去幾年我們在生產力計劃方面進行了大量投資。

These efforts drove higher cost savings than we anticipated in the second quarter, which we expect to continue in the second half of the year. Our earnings guidance was also updated to reflect the impact and shares repurchased in the first half of the year.

這些努力在第二季度帶來了比我們預期更高的成本節約，我們預計這種情況將在下半年繼續下去。我們的獲利指引也進行了更新，以反映上半年的影響和股票回購。

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. We're proud of our second quarter and year-to-date results. Our strong first-half results and positive outlook for our combined businesses through the balance of 2024 provided us with the confidence to raise our full-year earnings guidance. Our teams in specialty vehicle and heavy duty businesses have done an admirable job navigating market headwinds, while a light duty team continues to drive above-market growth.

謝謝，大衛。我們對第二季和今年迄今的業績感到自豪。我們強勁的上半年業績和對 2024 年餘下合併業務的積極前景使我們有信心提高全年盈利指引。我們的特種車輛和重型業務團隊在應對市場逆風方面做出了令人欽佩的工作，而輕型團隊則繼續推動高於市場的成長。

We remain committed to investing for the future and capitalizing on our innovation strategy to develop new product solutions that allow our customers to succeed. This includes continuing to invest in automation, capabilities in our operations to meet our customers' service level requirements and support our internal growth objectives.

我們仍然致力於投資未來，並利用我們的創新策略來開發新的產品解決方案，幫助我們的客戶取得成功。這包括繼續投資於自動化和營運能力，以滿足客戶的服務水準要求並支援我們的內部成長目標。

Confident that our growth and innovation strategy, coupled with the dedication and hard work of our contributors, will enable us to continue driving momentum for our customers and other stakeholders.

我們相信，我們的成長和創新策略，加上貢獻者的奉獻和辛勤工作，將使我們能夠繼續為客戶和其他利害關係人帶來動力。

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

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, guys, and thanks for taking my questions.

早上好，夥計們，感謝您提出我的問題。

Good morning, Scott.

早安，史考特。

Good morning, Scott.

早安，史考特。

Very impressive POS growth in light duty. A couple of your customers on their second quarter conference calls talked about some weakness that popped up, notably, I guess, in hard parts or under-car parts. Just trying to get a sense if you saw that within those numbers and just to kind of parse out market versus share gains for you guys with new products.

輕量 POS 成長非常驚人。你們的一些客戶在第二季的電話會議上談到了一些突然出現的弱點，我猜，特別是在硬零件或車下零件。只是想了解您是否在這些數字中看到了這一點，並且只是為了解析出新產品的市場收益與份額收益。

Yeah, thanks Scott. Good question. I mean, if we look at the POS, I mean, we saw a broad-based growth really across all our categories. I'm not really going to talk specific category growth levels, but it was a solid quarter. No question that the macro trends continue to remain favorable there.

是的，謝謝斯科特。好問題。我的意思是，如果我們看看 POS，我的意思是，我們在所有類別中都看到了廣泛的成長。我並不是真的要談論具體類別的成長水平，但這是一個穩定的季度。毫無疑問，那裡的宏觀趨勢繼續保持有利。

In that segment, you've got more used cars, they're older, miles driven, continues to be at solid levels. And the sweet spot for us that we've talked a lot about before, the 8 year to 13 year old vehicle cohort continues to grow.

在這個細分市場中，你有更多的二手車，它們更舊，行駛里程更長，仍然保持穩定的水平。對我們來說，我們之前討論過很多次的最佳點是，8 歲至 13 歲的車輛群體持續成長。

We also continue to see a lot of traction with new products. We had a really solid quarter for new products. We launched roughly 1,700 SKUs or so across the enterprise in the second quarter. Roughly 30% of those were what we would consider new to the aftermarket.

我們也繼續看到新產品的巨大吸引力。我們的新產品季度表現非常強勁。第二季度，我們在整個企業推出了約 1,700 個 SKU。其中約 30% 是我們認為售後市場的新產品。

So they don't exist in the aftermarket at the time that we launch it, and that was a 20% growth over the previous Q2. So we feel really good with our strategy to continue to deliver innovation to the aftermarket. And as we've said, we believe that will continue to drive above-market growth.

因此，當我們推出該產品時，售後市場中尚不存在這些產品，但比上一季成長了 20%。因此，我們對繼續為售後市場提供創新的策略感到非常滿意。正如我們所說，我們相信這將繼續推動高於市場的成長。

Got it. And then my follow-up question on heavy duty and specialty, factoring some of the cost containment measures and assuming sales do come back in specialty later in the year and heavy duty next year, what are the margins that we should -- operating margins by segment that you could expect on the incrementals as things come back?

知道了。然後是我關於重型和特種車的後續問題，考慮到一些成本控制措施，並假設特種車和明年重型車的銷售確實會在今年晚些時候回升，我們應該獲得的利潤是多少——營業利潤隨著事情的恢復，您可以預期增量的部分是什麼？

Yeah. Scott. It's David. It's a good question. So we've seen some really good work. The team's been focused on margin over the last several quarters, and we've made some great progress. As we kind of think about the three businesses and where we expect the margin profile to be, we expect the light duty to be kind of in that high teens.

是的。斯科特.是大衛。這是一個好問題。所以我們看到了一些非常好的作品。過去幾個季度，團隊一直專注於利潤率，我們已經取得了一些巨大的進步。當我們考慮這三項業務以及我們預期的利潤狀況時，我們預計輕稅將在十幾歲左右。

Same with the specialty vehicle high-teens and then the heavy duty business, probably more in the mid-to-high teens. So again, if you look at where our Q2 results came in, we're kind of in the ballpark on two of the three. And like I said, feel good about the progress we've made over the last few quarters.

與十幾歲的特種車輛相同，然後是重型業務，可能更多是中十幾歲。再說一次，如果你看看我們第二季的結果，你會發現我們在這三個方面中的兩個方面處於大致水平。正如我所說，我們對過去幾季的進展感到滿意。

Got it. Very helpful. Thank you.

知道了。非常有幫助。謝謝。

Thanks, Scott.

謝謝，斯科特。

Thanks, Scott.

謝謝，斯科特。

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Hi, good morning, guys.

嗨，早上好，夥計們。

Good morning, Bret.

早安，布雷特。

Good morning, Bret.

早安，布雷特。

On the light vehicle, is there a way to sort of look at the same SKU POS? Because that high single digit, obviously is very strong performance versus your customers sales. If we take out what was new product-driven, could we get a feeling for traction in the core SKUs?

在輕型車輛上，有沒有辦法查看相同的 SKU POS？因為這個高個位數，顯然與您的客戶銷售額相比是非常強勁的業績。如果我們剔除新產品驅動的內容，我們能否感受到核心 SKU 的吸引力？

Yeah, I would say, Bret, that we don't publicly break that out, but frankly, most of our growth is driven by new product, whether it was launched two years ago, three years ago, one year ago or this year. So that has been the driving factor of all our growth, Bret, as you look kind of backwards incrementally to what the market growth is, which we believe is kind of in that low single-digit level.

是的，我想說，布雷特，我們不會公開透露這一點，但坦白說，我們的大部分成長都是由新產品推動的，無論它是兩年前、三年前、一年前還是今年推出的。因此，布雷特，這一直是我們所有成長的驅動因素，當你逐步回顧市場成長時，我們認為市場成長處於較低的個位數水準。

Yeah. Okay. And then within specialty, I guess, give any color on the cadence of POS there? Is the consumer and specialty getting incrementally better as you're sort of looking for some improvement in sell-in, I guess, in the second half? Does that mean the sell-out is improving?

是的。好的。然後，我想，在專業範圍內，對 POS 的節奏有什麼看法嗎？我想，隨著您在下半年尋求銷售方面的改善，消費者和專業產品是否會逐漸改善？這是否意味著銷量正在改善？

No, I wouldn't say the sellout's improving. I mean, that business right now, frankly, has been flattish. If you look at the first half of the year, we had some modest growth last year. There is some signs that inventory in the dealer channel is starting to come down back to more normalized levels that will help as new machine sale growth ramps up. But we're not going to bank on that, Bret.

不，我不會說銷量正在改善。我的意思是，坦白說，現在的生意一直很平淡。如果你看看今年上半年，我們去年有一些溫和的成長。有一些跡象表明，經銷商通路的庫存開始回落至更正常的水平，這將有助於新機銷售成長的加速。但我們不會指望這一點，布雷特。

Our strategy there has been the market is what the market is and we're focused on kind of two major initiatives there, which is continuing to take share in the dealer channel and, you know, increasing our non-discretionary repair part business, which we've been very successful in.

我們的策略是市場就是市場，我們專注於兩項主要舉措，即繼續在經銷商通路中佔據份額，以及增加我們的非全權維修零件業務，這我們在這方面非常成功。

That's enabled us to kind of drive flattish to modest growth in what we view as a slightly down market. So those are the things we're going to continue to focus on in addition to productivity initiatives across the business.

這使我們能夠在我們認為略有下滑的市場中推動平穩至溫和的成長。因此，除了整個企業的生產力計劃之外，這些是我們將繼續關注的事情。

What's the sweet spot in specialty? Do you sell more when a new ATV or UTV is sold, or do you sell more into the maintenance of a three- to five-year-old ATV?

專業的最佳點是什麼？當您出售新的 ATV 或 UTV 時，您會銷售更多的產品，還是在維護三到五年的 ATV 時銷售更多的產品？

A great question, Bret. A very high percentage of our sales come within the first two years of a new vehicle sale. So for us, when we see new vehicle sales drop, that really does impact the business.

這是一個很好的問題，布雷特。我們的銷售額有很大一部分來自新車銷售的頭兩年。因此，對我們來說，當我們看到新車銷售下降時，這確實會影響業務。

Okay, great. Thank you.

好的，太好了。謝謝。

There are no further questions at this time. This will conclude today's conference. We thank you for joining. You may now disconnect your lines.

目前沒有其他問題。今天的會議到此結束。我們感謝您的加入。現在您可以斷開線路。