Dorman Products Inc (DORM) 2024 Q3 法說會逐字稿

Good morning and thank you for standing by. Welcome to the Dormant Products third quarter, 2024 earnings conference call at this time. All participants are in listen-only mode, a question and answer session will follow the formal presentation. Please note that this conference is being recorded. I would now like to turn the conference over to Alex White lab, Vice President of Investor relations and risk management. Thank you, sir. Please go ahead.

早安，感謝您的支持。歡迎此時參加 Dormant Products 2024 年第三季財報電話會議。所有參與者均處於僅聽模式，正式演示後將進行問答環節。請注意，本次會議正在錄製中。我現在想將會議交給投資者關係和風險管理副總裁 Alex White lab。謝謝您，先生。請繼續。

Thank you. Good morning, everyone. Welcome to Dorman's third quarter, 2024 earnings conference call.

謝謝。大家早安。歡迎參加 Dorman 2024 年第三季財報電話會議。

I'm joined by Kevin Olson Dorman's Chief Executive Officer and David Hasham 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 by now. Everyone should have access to our earnings release and earnings call presentation which are available in the investor relations portion of our website at Dorman products.com.

Kevin Olson Dorman 的執行長和 David Hasham Dorman 的財務長也加入了我的行列，Kevin 將提供業務最新情況。然後大衛將回顧季度業績，隨後凱文致閉幕詞。之後，我們現在將開始提問。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 Dorman products.com 的投資者關係部分中找到。

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.

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。

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 actual results to differ materially from those anticipated and described in such forward-looking statements.

我們建聲明。

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 in the investor relations section of Dorman's website. 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 with that, I'll turn the call over to Kevin.

我們也將參考某些非GAAP 衡量標準，這些非GAAP 衡量標準與最直接可比較的GAAP 衡量標準的對帳包含在我們的收益發布所附的時間表和本收益電話會議簡報的附錄中，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，我們要求參與者將自己限制在一個問題上並進行一次跟進，然後重新加入隊列。如果他們還有其他問題，我會將電話轉給凱文。

Thanks Alex.

謝謝亞歷克斯。

Good morning and thank you for joining our third quarter. 2024 earnings call as Alex mentioned, I'll start with highlights of our performance in the quarter, then provide an overview of our segment results. I'll also spend some time discussing how Dorman is differentiating itself with a set of competencies and a growing suite of next generation solutions within the complex electronic space.

早安，感謝您加入我們的第三季。正如 Alex 所提到的 2024 年財報電話會議，我將從本季的業績亮點開始，然後概述我們的部門業績。我還將花一些時間討論 Dorman 如何在複雜的電子領域中透過一系列能力和不斷增長的下一代解決方案套件脫穎而出。

Turn to slide 3. If you're following along in the deck, our positive momentum this year carried through the third quarter with solid top line growth and operating margin expansion leading to a significant increase in adjusted diluted EPS consolidated net sales increased 3.2% year over year to $504 million adjusted operating margin was 17.1% expanding 290 basis points compared to the same period. Last year margins improved on easing inflationary pressures in the quarter and favorable mix from higher new product sales. Along with returns from the productivity initiatives that we have been discussing throughout the year.

轉到投影片 3。如果您關注的話，我們今年的積極勢頭貫穿了第三季度，收入穩健增長，營業利潤率擴張，導致調整後攤薄每股收益大幅增加，合併淨銷售額同比增長 3.2%，達到 5.04 億美元調整後營業利益率為17.1%，較同期擴大290 個基點。去年，由於本季通膨壓力緩解以及新產品銷售增加帶來的有利組合，利潤率有所改善。以及我們全年一直在討論的生產力計劃的回報。

As a result, adjusted diluted EPS increased 40% over last year's third quarter to a dollar 96 free cash flow was solid at all36 millionowing us to repay $11 million of debt and repurchase $27 million of our shares during the quarter.

結果，調整後的攤薄每股收益比去年第三季度增長了40%，達到96 美元，自由現金流非常穩定36 百萬美元，使我們能夠在本季度償還1100 萬美元的債務併回購2700 萬美元的股票。

Given our results year-to-date as well as our positive outlook and visibility into the fourth quarter. We've narrowed our sales and increased our earnings guidance ranges for the year. David will cover guidance in a moment, moving to slide. Four, let me provide some observations across our three segments. Our light duty segment, the same positive trends we've highlighted in the first half of the year continued in the third quarter.

鑑於我們今年迄今的業績以及我們對第四季度的積極前景和可見度。我們縮小了今年的銷售額並提高了獲利指引範圍。大衛稍後將介紹指導，然後轉向幻燈片。第四，讓我對我們的三個部分提供一些觀察。在我們的輕型車領域，我們在上半年強調的積極趨勢在第三季度得到了延續。

Vehicle miles traveled were again higher year over year P OS was solid upload to mid single digits in the quarter and generally consistent with customer shipments. Our light duty business delivered profitability growth which was partially due to the automation and operational efficiency efforts we discussed in our last call. Finally, we continue to diversify our supplier base and geographic exposure.

車輛行駛里程再次較去年同期成長，本季 P OS 穩定上升至中個位數，與客戶出貨量基本一致。我們的輕型業務實現了獲利成長，部分原因在於我們在上次電話會議中討論的自動化和營運效率方面的努力。最後，我們繼續使我們的供應商基礎和地理分佈多樣化。

This remains a key focus area for the business and the team has done a nice job reorienting the supply chain over the last few years.

這仍然是該業務的一個重點關注領域，而團隊在過去幾年中在重新定位供應鏈方面做得很好。

While our heavy duty business continued to experience market pressure. During the quarter, we drove solid year over year segment profit margin improvement with cost savings and productivity initiatives.

同時，我們的重型業務繼續面臨市場壓力。在本季度，我們透過成本節約和生產力措施推動了部門利潤率逐年穩步提高。

Additionally, recent market indicators are signaling stabilization in the freight industry. Predicting a growth inflection in that segment remains difficult, but we're seeing positive signs across our customer base.

此外，最近的市場指標顯示貨運業趨於穩定。預測該細分市場的成長拐點仍然很困難，但我們在整個客戶群中看到了積極的跡象。

Our specialty vehicle segments net sales were flat compared to last year's third quarter as market headwinds persisted despite these challenges, specialty vehicle increased its segment profit margin year over year. Looking forward, we anticipate seeing new machine demand increase if customer borrowing rates are reduced in connection with the forecasted fed rate cuts. Additionally, our new product offerings including a higher mix of non discretionary repair parts along with enhanced dealer expansion initiatives are driving out performance versus the overall specialty vehicle sector.

儘管面臨這些挑戰，但由於市場逆風持續存在，我們的專用車細分市場淨銷售額與去年第三季持平，但專用車細分市場的利潤率同比增長。展望未來，如果客戶借款利率因聯準會降息預測而降低，我們預期新機器需求將會增加。此外，我們的新產品供應，包括更多的非自行維修零件組合以及增強的經銷商擴張計劃，正在推動整體特種車輛行業的業績成長。

On slide 5, we'll spend some time describing how our capabilities, the vehicle electronics are creating growth opportunities across our segments. It's no secret that the vehicles we serve have become more complex electronic control components increasingly integrated into what were previously simple mechanical systems.

在投影片 5 上，我們將花一些時間描述我們的能力、車輛電子產品如何在我們的細分市場中創造成長機會。眾所周知，我們所服務的車輛已經變得更加複雜，電子控制組件越來越多地整合到以前簡單的機械系統中。

We were an early investor in this trend releasing our first complex electronic part, a fuel pump driver module in 2011. Since that launch, we have continued to invest in our electronics business including our acquisition of flight systems. 2018.

我們是這一趨勢的早期投資者，於 2011 年發布了我們的第一個複雜電子零件，即燃油泵驅動器模組。自推出以來，我們繼續投資於我們的電子業務，包括收購飛行系統。2018.

These investments have deepened our capabilities and highly technical and difficult to address categories. Today, we have a differentiated set of capabilities that allow us to develop innovative complex electronic solutions that technicians rely on to repair these critical systems which ensure continued functionality and safety for end user vehicles and often improve performance.

這些投資加深了我們的能力以及技術含量高且難以解決的類別。如今，我們擁有一套差異化的能力，使我們能夠開發創新的複雜電子解決方案，技術人員可以依靠這些解決方案來修復這些關鍵系統，從而確保最終用戶車輛的持續功能和安全性，並經常提高性能。

The question we get regularly is how the proliferation of electric and hybrid vehicles will impact our business over the long term, simply put our diverse capabilities allow us to be truly power train agnostic. As we see significant growth opportunities across the various propulsion technologies being deployed and developed.

我們經常收到的問題是，電動和混合動力汽車的普及將如何長期影響我們的業務，簡單地說，我們的多樣化能力使我們能夠真正做到動力傳動系統不可知論。我們看到正在部署和開發的各種推進技術都存在著巨大的成長機會。

Our multi platform approach offers dormant the flexibility and optionality to accelerate growth as each platform matures over time, vehicles with ice engines are expected to remain the vast majority of the North American car park well into the future.

隨著每個平台隨著時間的推移逐漸成熟，我們的多平台方法提供了加速增長的靈活性和可選性，預計未來很長一段時間內，配備冰發動機的車輛仍將佔據北美停車場的絕大多數。

According to me, the aftermarket suppliers, projections in collaboration with strategy and ice vehicles are expected to make up approximately 90% of the 8 to 13 year old Vio Norman Sweet Spot through 2035.

據我所知，售後市場供應商預計，到 2035 年，與策略和冰車合作的預計將佔 8 至 13 年車齡 Vio Norman Sweet Spot 的約 90%。

This provides us with a long runway to continue adding to our leading portfolio of aftermarket solutions including new complex electronics for this set of vehicles. Additionally, we expect increased fuel efficiency and safety regulations will continue to drive more oe system changes and thus provide further opportunity for innovation in the after market.

這為我們提供了一條漫長的道路，可以繼續增加我們領先的售後解決方案組合，包括用於這套車輛的新型複雜電子設備。此外，我們預計燃油效率和安全法規的提高將繼續推動原配系統的更多變革，從而為售後市場的創新提供更多機會。

Hybrid vehicles have already made their way into our car park sweet spot. We have a solid portfolio of solutions servicing those models today, hybrids offer Dorman a broader opportunity for category growth given their dual power train systems and with customers becoming more comfortable with hybrid technology, we anticipate seeing future expansion of hybrid platforms while electric vehicles are a smaller portion of the park today.

混合動力汽車已經進入我們的停車場。如今，我們擁有為這些車型提供服務的可靠解決方案組合，混合動力汽車為Dorman 提供了更廣泛的品類增長機會，因為它們的雙動力傳動系統，並且隨著客戶對混合動力技術越來越滿意，我們預計未來混合動力平台將擴展，而電動車將是今天公園的一小部分。

And some O ems have recently wavered on their level of investment in EV models we have and will continue to develop technology for new EV platforms. With the same innovation strategy we've applied historically. Again, we see this driving long term value for the company as ed platforms are even more dependent on complex electronic parts, electronic modules deployed to sense and control nearly every activity across the vehicle.

一些原始設備製造商最近對我們現有的電動車模型的投資水平產生了動搖，並將繼續為新的電動車平台開發技術。採用我們歷史上應用過的相同創新策略。再次，我們看到這為公司帶來了長期價值，因為教育平台更加依賴複雜的電子零件、部署用於感測和控制車輛上幾乎所有活動的電子模組。

We expect higher replacement costs and potentially higher failure rates with these new systems.

我們預期這些新系統的更換成本更高，故障率也可能更高。

Today, we have thousands of skus across our three business units to support electronic systems in ice hybrid and electric vehicles.

如今，我們的三個業務部門擁有數千個 SKU，用於支援冰混合動力汽車和電動車的電子系統。

Our ideation and new product development teams are constantly designing and engineering, innovative components including o we fix solutions to support new growth opportunities and solve increasingly complex challenges in today's and tomorrow's vehicles.

我們的創意和新產品開發團隊不斷設計和製造創新組件，包括我們修復解決方案以支援新的成長機會並解決當今和未來車輛中日益複雜的挑戰。

We expect this multi platform approach will drive long term sustainable value for our stakeholders.

我們預計這種多平台方法將為我們的利害關係人帶來長期可持續的價值。

Now on slide 6, let me provide some additional detail on our differentiated capabilities.

現在，在投影片 6 上，讓我提供有關我們差異化能力的一些額外細節。

As our electronics business grew in size and strategic importance, we recognize the need to aggregate its engineering and product development capabilities into a single stand alone group in 2023. We launched an electronic center of excellence to build the infrastructure and expertise needed to accelerate the development of next generation after market solutions.

隨著我們的電子業務規模和策略重要性的成長，我們認識到需要在 2023 年將其工程和產品開發能力整合到一個獨立的團隊中。我們成立了一個電子卓越中心，以建立加速下一代售後市場解決方案開發所需的基礎設施和專業知識。

This cross functional group has done an outstanding job evaluating opportunities and driving new product innovation for Dorman to expand its electronics portfolio.

這個跨職能團隊在評估機會和推動新產品創新方面表現出色，幫助 Dorman 擴展了其電子產品組合。

From a process perspective, we begin with identifying and assessing failure points throughout our vast network of technicians and specialists who are motivated to provide us with the break points they're seeing in the field.

從流程的角度來看，我們首先在龐大的技術人員和專家網路中識別和評估故障點，他們積極向我們提供他們在現場看到的斷點。

This is not unlike the process we undertake with our other products. As you would imagine, it requires a different and more technical expertise, data logging and code development is where our differentiation lies through our specialized and proprietary processing systems.

這與我們處理其他產品的過程沒有什麼不同。正如您所想的那樣，它需要不同且更具技術性的專業知識，而資料記錄和程式碼開發是我們透過專業和專有處理系統實現差異化的地方。

Our teams run thousands of tests and trials on various electronic components to log and analyze the data, then design and write our own software code for compatibility for improvement. Finally, our software validation process is designed to ensure that the product integrates seamlessly into the vehicle safety and functional systems.

我們的團隊對各種電子元件進行了數千次測試和試驗，以記錄和分析數據，然後設計和編寫我們自己的軟體程式碼以改善相容性。最後，我們的軟體驗證流程旨在確保產品無縫整合到車輛安全和功能係統中。

This advanced set of competencies highlights Dorman's leadership and the competitive advantages we built in the aftermarket space.

這套先進的能力凸顯了 Dorman 的領導地位以及我們在售後市場領域建立的競爭優勢。

We expect these advantages will contribute to our long term success as complex electronics are poised to outpace the growth of traditional hard parts, especially on alternative propulsion technology platforms. With that, I'll hand off to David to review our Q3 financial performance.

我們預計這些優勢將有助於我們的長期成功，因為複雜電子產品的成長速度將超過傳統硬零件，尤其是在替代推進技術平台上。接下來，我將把任務交給 David 來審查我們第三季的財務表現。

Thanks, Kevin, turning to slide 7 consolidated net sales in the third quarter. For $504 million. A 3% year over year.

謝謝，凱文，轉向幻燈片 7 第三季的綜合淨銷售額。售價 5.04 億美元。較去年同期成長3%。

Similar to the second quarter, the growth was driven by the light duty business which was fueled by increased customer demand and sales of new products that were launched this year.

與第二季類似，成長是由輕型業務推動的，而輕型業務是由客戶需求增加和今年推出的新產品銷售所推動的。

While market headwinds impacting our heavy duty and specialty vehicle businesses persisted through the quarter. Both businesses drove margin improvement. I'll cover each of the segments in just a moment.

儘管影響我們重型和特種車輛業務的市場逆風在本季持續存在。這兩項業務都推動了利潤率的提升。我稍後將介紹每個部分。

Gross margin for the quarter was 40.5%. A 300 basis point increase compared to the prior year period.

該季度毛利率為 40.5%。與去年同期相比增加300個基點。

This improvement was driven by inflationary pressures, easing across our segments and favorable mix from higher sales of new products bolstered by the operational efficiency initiatives. We've been executing throughout the year adjusted SG&A expense as a percentage of net sales was flat year over year at 23.4% adjusted operating income was $86 million for the third quarter. Up more than 24% compared to the same period. Last year.

這項改善是由通膨壓力、各部門的緩解以及營運效率舉措推動的新產品銷售增加所帶來的有利組合所推動的。我們全年執行調整後的 SG&A 費用佔淨銷售額的百分比，較去年同期持平，為 23.4%，第三季調整後的營業收入為 8,600 萬美元。年成長超過24%。去年。

Adjusted operating margin expanded 290 basis points to 17.1% largely on gross margin improvement.

調整後營業利益率擴大 290 個基點至 17.1%，主要得益於毛利率的改善。

Finally, third quarter adjusted diluted EPS was $1.96 a 40% compared to the prior year period.

最後，第三季調整後攤薄每股收益為 1.96 美元，比去年同期成長 40%。

Along with increased adjusted operating income, lower interest expense tax rate and share accounts contributed to our EPS growth.

隨著調整後營業收入的增加，利息費用稅率和股票帳戶的降低也促進了我們每股盈餘的成長。

Next, let me provide updates on the quarter for each of our business segments starting with light duty on slide, eight net sales for light duty were $394 million in the third quarter of 5%. Compared to last year, shipments were generally aligned with customer P OS during the quarter and year-to-date.

接下來，讓我提供我們每個業務部門的季度最新情況，從輕型車開始，第三季輕型車的八個淨銷售額為 3.94 億美元，成長 5%。與去年相比，本季和年初至今的出貨量與顧客銷售點基本一致。

As we've discussed throughout the year, our new products and the strength of Dorman's brand continue to drive significant growth for light duty segment. Profit margin in Q3 was 19% up 290 basis points compared to the same period last year.

正如我們全年討論的那樣，我們的新產品和 Dorman 品牌的實力繼續推動輕型汽車領域的顯著成長。第三季利潤率為19%，較去年同期成長290個基點。

Similar to last quarter, this margin improvement was driven by easing inflationary pressures, favorable mix driven by higher new product sales and operational excellence initiatives, delivering cost savings across the business.

與上季類似，利潤率的提高是由通膨壓力緩解、新產品銷售增加和卓越營運措施推動的有利組合推動的，從而節省了整個業務的成本。

As Kevin mentioned, both our heavy duty and specialty vehicle segments navigated continued market headwinds well during the quarter, let me provide a bit more detail on the next two slides on slide. Nine heavy duty Q3 net sales were $60 million down 5% compared to last year's third quarter. However, we estimate that the broader heavy duty market was down roughly mid single digits indicating that our new product development and enhanced commercialization initiatives are yielding positive results.

正如凱文所提到的，我們的重型和特種車輛領域在本季都很好地應對了持續的市場逆風，讓我在接下來的兩張幻燈片中提供更多細節。九號重型車第三季淨銷售額為 6,000 萬美元，比去年第三季下降 5%。然而，我們估計更廣泛的重型市場下降了大約中個位數，這表明我們的新產品開發和增強的商業化措施正在產生積極的成果。

Despite lower sales, the team did a solid job increasing the segment's margin profile operating margin for heavy duty was 4.5% up 150 basis points over last year's third quarter.

儘管銷售額較低，但該團隊在提高該部門的利潤率方面表現出色，重型卡車的營業利潤率為 4.5%，比去年第三季度提高了 150 個基點。

While it remains difficult predicting a significant market turn, we're pleased with some of the market commentary that the freight industry is stabilizing. From the recent recessionary trend, we remain focused on managing the business for long term success and capitalizing on growth opportunities as market conditions improve.

雖然預測市場出現重大轉變仍然很困難，但我們對貨運業正在穩定的一些市場評論感到滿意。從最近的衰退趨勢來看，我們仍然專注於管理業務以取得長期成功，並隨著市場狀況改善而利用成長機會。

Moving to slide. 10 for our specialty vehicle segment, net sales were flat year over year at $51 million. Despite higher financing rates and uncertainty in consumer sentiment. Driving continued market headlines through our new product development strategy including the expansion of our non discretionary repair parts portfolio. Coupled with our new dealer growth initiatives, we were able to offset continued softness in the sector.

移動到幻燈片。10 我們的特種車輛部門的淨銷售額與去年同期持平，為 5,100 萬美元。儘管融資利率較高且消費者信心存在不確定性。透過我們的新產品開發策略（包括擴大我們的非自行維修零件組合）持續成為市場頭條新聞。加上我們新的經銷商成長計劃，我們能夠抵消該行業持續疲軟的影響。

Additionally, the team continues to drive higher margins from cost savings initiatives. These resulted in segment profit margins increasing 350 basis points year over year to 17%.

此外，該團隊繼續透過成本節約措施提高利潤。這使得分部利潤率年增 350 個基點，達到 17%。

We remain positive on the outlook for this business as interest rate pressures continue to subside and consumer sentiment stabilizes. We expect to see increased demand for our products as end user enthusiasm in the space remains robust.

隨著利率壓力持續消退和消費者信心穩定，我們對該業務的前景保持樂觀。由於最終用戶對該領域的熱情依然強勁，我們預計對我們產品的需求將會增加。

Turning to cash flow on slide 11 free cash flow was $36 million in the third quarter, down 23% compared to the same period. In 2023 the decline was primarily related to an increase in our inventory balance, offsetting lower operating cash with lower capital expenditures.

轉向幻燈片 11 上的現金流，第三季自由現金流為 3,600 萬美元，年減 23%。2023 年，這一下降主要與我們的庫存餘額增加有關，並以較低的資本支出抵消了較低的營運現金。

Our capital allocation strategy remained consistent during the quarter as we repaid $11 million in debt and returned $27 million to shareholders through the repurchase of approximately 274,000 shares at an average price of $98 per share.

本季我們的資本配置策略保持一致，償還了 1,100 萬美元的債務，並透過以每股 98 美元的平均價格回購約 274,000 股股票，向股東返還了 2,700 萬美元。

Additionally, with our existing share repurchase program expiring at the end of this year, Dorman's board of directors approved a new repurchase authorization of up to $500 million of common stock covering 2025 through 2027.

此外，由於我們現有的股票回購計畫將於今年底到期，Dorman 董事會批准了一項新的回購授權，在 2025 年至 2027 年期間回購最多 5 億美元的普通股。

Along with organic and inorganic investments. We continue to repurchase shares opportunistically prudently returning capital to our shareholders.

以及有機和無機投資。我們繼續審慎地回購股票，向股東返還資本。

Our capital allocation strategy and strong balance sheet position us well to drive long term value on slide 12, I'll cover our balance sheet and liquidity.

我們的資本配置策略和強大的資產負債表使我們能夠很好地推動長期價值。

As of September 28th, our net debt was $492 million or $8 million lower than Q2.

截至 9 月 28 日，我們的淨債務為 4.92 億美元，比第二季減少 800 萬美元。

Our net leverage ratio was 1.36 times adjusted EBITA down from 1.44 times at the end of June and 1.87 times at the end of last year, our current leverage remains comfortably below our long term target of two times and well below our target of less than three times following the 1st year of an acquisition.

我們的淨槓桿率為調整後EBITA 的1.36 倍，低於6 月底的1.44 倍和去年年底的1.87 倍，我們目前的槓桿率仍遠低於我們2 倍的長期目標，並遠低於我們低於3 倍的目標收購第一年後的次。

Additionally, our total liquidity was $582 million at the end of the quarter. Up from $576 million. At the end of Q2, our balance sheet remains strong and we're pleased with the capacity and flexibility. It provides us to continue executing our strategic plan and deploy capital for future growth investment.

此外，截至本季末，我們的總流動資金為 5.82 億美元。高於 5.76 億美元。在第二季末，我們的資產負債表仍然強勁，我們對產能和靈活性感到滿意。它使我們能夠繼續執行我們的策略計劃並為未來的成長投資部署資本。

Turning to slide 13, I'd like to discuss our updated guidance for 2024 reflecting on our performance through the first nine months and expected strong finish to the year. We're updating our 2024 guidance for net sales. We have narrowed our expectations to an increase of 3.5% to 4.5% over 2023.

轉向幻燈片 13，我想討論我們更新的 2024 年指引，反映我們前九個月的表現以及預計今年的強勁業績。我們正在更新 2024 年淨銷售指南。我們將 2023 年成長率預期縮小至 3.5% 至 4.5%。

As we look across the segment, we believe that light duty momentum will continue.

當我們縱觀整個細分市場時，我們相信輕型車的勢頭將持續下去。

We anticipate P OS and shipments will remain in line as they have thus far in 2024. And the macro environment will continue to be positive.

我們預計 2024 年 POS 和出貨量將與迄今為止保持一致。宏觀環境將繼續向好。

Our heavy duty and specialty vehicle businesses remain well positioned to continue driving solid execution and down market based on these factors. We expect each of our three segments full year net sales performance to improve compared to their year-to-date results.

基於這些因素，我們的重型和特種車輛業務仍然處於有利地位，可以繼續推動穩健的執行和下游市場。我們預計我們三個部門的全年淨銷售業績將比年初至今有所改善。

Additionally, we narrowed and increased our full year earnings guidance range. We now expect that just the diluted EPS to be in the range of $6.85 $6.95 for 2024 representing a 51% to 53% increase over 2023 throughout the year. We've seen strong growth in new products including complex electronics that Kevin spoke of earlier. Our new products generally carry a higher margin profile and their higher sales drive both volume and favorable profit mix.

此外，我們縮小並提高了全年獲利指引範圍。我們現在預計 2024 年攤薄後每股收益將在 6.85 美元至 6.95 美元之間，較 2023 年全年增長 51% 至 53%。我們看到新產品的強勁成長，包括凱文之前提到的複雜電子產品。我們的新產品通常具有較高的利潤率，其較高的銷售量推動了銷售量和有利的利潤組合。

Additionally, our investments in operational excellence initiatives across the enterprise, including automation, productivity and global sourcing are also yielding strong results. This is a testament to our team's positive adoption of new processes and our ability to navigate dynamic, challenging market environment. So I'd like to thank our team for their hard work and dedication this year with that, I'll turn it back over to Kevin to conclude Kevin. Thanks.

此外，我們對整個企業卓越營運計畫（包括自動化、生產力和全球採購）的投資也產生了強勁的成果。這證明了我們團隊積極採用新流程以及我們應對動態、充滿挑戰的市場環境的能力。因此，我要感謝我們的團隊今年的辛勤工作和奉獻精神，我將把它轉回凱文來結束凱文。謝謝。

David. I'd like to echo your comments regarding our team.

大衛.我想回應您對我們團隊的評論。

We've implemented a number of changes across the organization this year and our contributors have done an outstanding job adapting and improving upon the initiatives we put in place. We're proud of our results to the year. Look forward to finishing 2024 strong, delivering significant growth over last year, we remain committed to driving long term growth by investing in our people, our processes and the innovation needed to design and deliver next generation solutions. With that. I would now like to open the call up for questions, operator.

今年，我們在整個組織中實施了許多變革，我們的貢獻者在適應和改進我們實施的舉措方面做得非常出色。我們對今年的成果感到自豪。展望 2024 年，我們將實現強勁成長，較去年實現顯著成長，我們仍致力於透過投資於我們的員工、流程以及設計和交付下一代解決方案所需的創新來推動長期成長。就這樣。我現在想打開電話詢問問題，接線生。

Thank you. We will not be a question and answer session. (Operator Instructions)

謝謝。我們不會進行問答環節。 （操作員說明）

Our first question comes from the line of Scott Timber with Roth MKM. Scott. Your line is now open.

我們的第一個問題來自 Scott Timber 和 Roth MKM 的線路。斯科特.您的線路現已開通。

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.

早安.

Maybe we could just touch first on light duty. Some of your customers have been talking about some softening even in the, the professional side of the business or do it for me.

也許我們可以先接觸一下輕型任務。你們的一些客戶一直在談論甚至在業務的專業方面也有一些軟化，或者為我做。

But you guys continue to outperform, just trying to get a sense of, you know, how much is being driven by new products. And, what things look like on the same skew basis on a year over year basis.

但你們繼續表現出色，只是想了解新產品的推動力有多大。並且，在相同偏差的情況下，同比情況會是什麼樣子。

Yeah. Good question, Scott. Yes. I mean, you know, if you look across kind of what's been going on in the aftermarket, there certainly seems to be a stronger growth profile in, in the commercial side of the business, you know, based on what, what our customers are saying.

是的。好問題，史考特。是的。我的意思是，你知道，如果你看看售後市場上正在發生的事情，你知道，在業務的商業方面，肯定會有更強勁的成長態勢，你知道，基於我們的客戶是說。

And Diy, that seems to be a bit softer from a total growth perspective. If you look at Dorm and Scott, as you know, we're, we're more indexed to the difm or commercial side of the house for non discretionary parts. And so we're not as tied to the, the diy trends that seem to be out there in the, in the market now.

而 Diy，從整體成長的角度來看似乎有點軟。如果你看看 Dorm 和 Scott，你就會知道，我們更多地索引到房子的 difm 或商業方面的非自由裁量部分。因此，我們不再受現在市場上似乎存在的 DIY 趨勢的束縛。

I mean, obviously, you know, one of the major growth drivers for us has been new products and it continues to be, it's why we focus so much on innovation and new to the aftermarket solutions that has and will continue to be the major growth profile and lever for the company going forward.

我的意思是，顯然，你知道，我們的主要成長動力之一是新產品，而且仍然如此，這就是為什麼我們如此專注於創新和新的售後市場解決方案，這些解決方案已經並將繼續成為主要成長公司未來的概況和槓桿。

Got it. And then the next question before I get back into the queue, talked about signs of things stabilizing and heavy duty. Trying to get a sense of where we could look for margins, operating margin in heavy duty to go. When things do finally start to hit their stride once again.

知道了。然後，在我回到隊列之前的下一個問題，談到了事情穩定和繁重的跡象。試圖了解我們可以在哪裡尋找重型汽車的利潤率、營運利潤率。當事情終於再次開始步入正軌時。

Yeah. Great question, Scott. I mean, look, we heavy duty. It seems to be, that market seems to be stabilized. Certainly, bumping off the bottom as, as, as we see it today. It's, as I said in the prepared remarks, it's, it's difficult to call when that market is going.

是的。好問題，史考特。我的意思是，看，我們的任務很重。看來，市場似乎已經穩定下來。當然，就像我們今天看到的那樣，觸底反彈。正如我在準備好的發言中所說，很難判斷市場的走向。

We certainly hope there seem to be some signs that 2025 you might see an inflection up, you know, that, that business for us, obviously is not as asset light as our specialty or light duty business. So it's obviously impacted more from volume decreases, you know, with the, the, the overhead that they carry for manufacturing operations.

我們當然希望有一些跡象表明，到 2025 年，您可能會看到拐點，您知道，對我們來說，這項業務顯然不像我們的專業或輕型業務那樣輕資產。因此，它顯然受到產量減少的影響更大，你知道，以及它們為製造業務帶來的開銷。

So from our perspective, you know, we're going to continue to focus on innovation in that side of the house and productivity initiatives. So we think we're well positioned when that market does come back in terms of, you know, the actual, you know, target, you know, that business for us before the, the downturn was generating midteen operating profit margins. And so we expect to be back at that level when the market goes and collect.

因此，從我們的角度來看，我們將繼續專注於內部創新和生產力計劃。因此，我們認為，當市場確實回歸時，我們就處於有利位置，在經濟低迷之前，我們的實際業務目標是產生中等的營業利潤率。因此，當市場走強時，我們預計會回到該水平。

Got it. Thank you.

知道了。謝謝。

Our next question. Comes from the line of Bret Jordan with Jefferies. Brett. Your line is now open.

我們的下一個問題。來自布雷特喬丹 (Bret Jordan) 和杰弗里斯 (Jefferies) 的血統。布雷特。您的線路現已開通。

Hey, good morning guys.

嘿，早上好，夥計們。

Hey, could you talk.

嘿，你能談談嗎？

About in the specialty segment? How much is now in the repair space as opposed to the discretionary mix? Have you guys developed that break, fix product line?

關於專業領域？與可自由支配的組合相比，現在的維修空間有多少？你們開發了突破、修復產品線嗎？

Yeah, we're, we're actually, slightly above half the business is non discretionary repair. Right. You know, it's, it's, it was less than that when we acquired the business a little bit more than 18 months ago. As we've talked previously, you know, we are tied to new vehicle sales because there is a high attach rate.

是的，我們實際上有一半以上的業務是非自行維修。正確的。你知道，比 18 個多月前我們收購該業務時的數字要少。正如我們之前所說，您知道，我們與新車銷售息息相關，因為附加率很高。

You know, to, to new vehicle sales. That's why the focus on non discretionary repair. We made a lot of progress on that initiative and we continue to do so. So it's going to continue to be a focus. And that kind of balance of sale will continue to increase.

你知道，新車銷售。這就是為什麼重點關注非自行維修。我們在這項舉措上取得了很大進展，並將繼續這樣做。因此，它將繼續成為焦點。而這種銷售餘額將繼續增加。

Okay, great. And then the question.

好的，太好了。然後是問題。

On complex electronics margins, you say obviously that the new product margin exceeds the average, do complex electronics, new product margins exceed the average new product margin. Is it a, is it a more profitable segment overall?

關於複雜電子產品的利潤率，你顯然說新產品利潤率超過平均水平，做複雜電子產品，新產品利潤率超過平均新產品利潤率。整體而言，這是一個利潤更高的細分市場嗎？

Well, I'll just say it this way. I mean, you know, we don't give specifics around that category in terms of margin or the size of it. But what I will say, Brent is a lot of those parts are new to the aftermarket. Okay. Which means that part did not exist in the aftermarket the day before we launched it.

嗯，我就這樣說吧。我的意思是，你知道，我們不會在利潤或規模方面給出該類別的具體資訊。但我要說的是，布倫特很多零件對於售後市場來說都是新的。好的。這意味著在我們推出該零件的前一天，售後市場上還不存在該零件。

Okay. So those parts, generally have a higher margin profile than, you know, a part that's been in the aftermarket or is not new to the aftermarket. It's the highest margin for us. It's the highest margin for our customers. So obviously, you know, new the app or complex electronics is, is mainly new the app market. It's going to carry a higher margin profile than the balance of the business.

好的。因此，這些零件通常比售後市場上的零件或售後市場上不新鮮的零件具有更高的利潤率。這是我們的最高利潤。這是我們客戶的最高利潤。顯然，你知道，新的應用程式或複雜的電子產品主要是新的應用程式市場。它將比其他業務擁有更高的利潤率。

Okay. And then a quick follow up question, I guess, margin impact if we do see tariffs change. You know, you guys have talked about some supply chain, you know, reevaluating supply chain, but obviously, if there's going to be a big tariff increase next year, how do you see that impacting the business?

好的。然後是一個快速跟進的問題，我想，如果我們確實看到關稅發生變化，利潤率會受到影響。你們知道，你們談論了一些供應鏈，重新評估供應鏈，但顯然，如果明年關稅大幅上漲，你們認為這對業務有何影響？

Yeah, we're obviously watching that very closely. Brett. You know, I would say that we're much better positioned now than we were back in say 2018.

是的，我們顯然正在密切關注這一點。布雷特。你知道，我想說，我們現在的處境比 2018 年好得多。

As, as you reference, our supply chain is much more diverse. I'd also say, I think we're, we're better positioned in that, you know, we have a playbook. So we know how to handle it. We know we have to do, we'll do what's right for the, you know, if tariffs do come on, we'll do what's right for our business and we'll do what's right for our customers and the ultimate end user at the end of the day.

正如您所提到的，我們的供應鏈更加多樣化。我還想說，我認為我們處於更好的位置，你知道，我們有一個劇本。所以我們知道如何處理它。我們知道我們必須做，我們會做對我們有利的事情，你知道，如果關稅確實出現，我們會做對我們的業務有利的事情，我們會做對我們的客戶和最終用戶有利的事情一天結束了。

So I think, that's how we're going to view it. You know, I don't really want to go more into it at this point. We're just going to continue to watch and see what happens.

所以我想，這就是我們看待它的方式。你知道，我現在不想再深入討論這個問題。我們將繼續觀察，看看會發生什麼。

Okay, great. Thank you.

好的，太好了。謝謝。

Our next question comes from the line of Justin Agents with CJ S securities. Justin, your line is now open.

我們的下一個問題來自 Justin Agents 與 CJ S 證券的關係。賈斯汀，您的線路現已開通。

Hi, good morning. It's Pete Lucas for Justin. You covered a lot of my questions. Thanks for that. Just in terms of electric vehicle parts, what are you seeing now? And kind of what is, where do you see it going in the future? I know you touched on it in the prepared remarks in terms of the breakdown, but just where are we today and, and kind of where do you see it going in the short term?

嗨，早安。這是賈斯汀的皮特盧卡斯。你解答了我很多問題。謝謝你。就電動車零件而言，您現在看到了什麼？您認為它未來會走向何方？我知道你在準備好的發言中談到了這一點，但我們今天處於什麼位置，以及你認為短期內會發生什麼？

Well, I think, you know, depending on what you mean by electronic vehicles, right? Electric vehicles, I mean, you know how we view it is, you know, obviously pure plug in electric and there's, there's hybrid, as we mentioned, the prepared remarks. I mean, the, the, the car park is going to remain heavy ice, through 2035. There will be a con you know, continued increase in the car park in the repair, age that we target for pure plug in electric and hybrid.

嗯，我想，你知道，這取決於你所說的電動車的含義，對嗎？電動車，我的意思是，你知道我們如何看待它，你知道，顯然是純電動車，還有混合動力車，正如我們所提到的，準備好的評論。我的意思是，到 2035 年，停車場仍將結滿厚厚的冰。你知道，會有一個缺點，就是維修停車位的持續增加，我們針對純插電式和混合動力車的目標年齡。

You know, look, we don't, we do it just like, ice, you know, we have the capability to address parts on, on the, on any electric vehicle out there. A lot of them are complex electronics. Hence, that's why we focus and invest so much in those categories. So as, as those categories do increase over time, we'll continue to increase our content, but it's going to be, it's going to be quite some time before there's a meaningful portion of the car park in our, in the repair age that are pure plug in electric.

你知道，看，我們不這樣做，我們就像冰一樣，你知道，我們有能力解決任何電動車上的零件問題。其中很多都是複雜的電子產品。因此，這就是我們如此關注並投資於這些類別的原因。因此，隨著這些類別隨著時間的推移而增加，我們將繼續增加我們的內容，但這將是，在我們的維修時代，停車場的有意義的部分需要相當長的時間均為純電動插頭。

Very helpful. Thanks.

非常有幫助。謝謝。

Our next question comes from the line of Gary Prestopino with Barrington Research. Gary, your line is now open.

我們的下一個問題來自 Barrington Research 的 Gary Prestopino。加里，您的線路現已開通。

Thanks, good morning, everyone.

謝謝大家早安。

Questions here. David, What was that? $1.6 million other income, a positive number in the quarter.

問題在這裡。大衛，那是什麼？160 萬美元的其他收入，本季為正數。

The on the other income and expense. Gary, that was the impact of our joint venture income. That's where that shows up.

關於其他收入和支出。加里，這就是我們合資企業收入的影響。這就是出現的地方。

Okay.

好的。

Thanks. And then Kevin, you know, maybe you could help us out here, you know, you, you're, you're citing that new products are helping to drive growth and increase the margins. But could you maybe slap some metrics around that in terms of, you know, how much, what percentage of sales were coming from new products? You know, over the last nine months or in the quarter versus where they were last year? Just, just so we can kind of get an idea of, of how that is you know, moving to the positive for the company.

謝謝。然後凱文，你知道，也許你可以在這裡幫助我們，你知道，你，你，你說新產品正在幫助推動成長和增加利潤。但你能否圍繞這一點制定一些指標，例如有多少銷售額、有多少百分比來自新產品？你知道，過去九個月或本季與去年的情況相比嗎？只是這樣我們就可以了解一下，你是如何知道這一點的，從而為公司帶來正面的影響。

Hey, Gary, we don't release metrics in terms of, you know, what, portion of our sales dollars are tied to new products. We do release, you know, the, the new SKUS as, as, you know, skews in the quarter were roughly flattish to where they were a year ago.

嘿，加里，我們不會發布與新產品相關的部分銷售收入的指標。我們確實發布了新的 SKUS，因為本季的偏差與一年前的水平大致相當。

That'll come out in the disclosures, but I would tell you that it was, you know, last year it was up against a very difficult comp the two year stack, for skews in the quarter was actually up 70% from where it was back in the same quarter in 2022. So look new to the aftermarket continues to be, again, we're always going to have line extensions, you know, applications that retire new applications, but where the growth is going to be driven is, is new to the aftermarket.

這將在披露中公佈，但我會告訴你，你知道，去年它面臨著非常困難的兩年堆棧，因為本季度的偏差實際上比原來高了 70%回到 2022 年同一季度。因此，售後市場仍然是新的，我們總是會進行產品線擴展，你知道，應用程式會淘汰新的應用程序，但成長的驅動力是售後市場的新內容。

And that continues to be a strong driver of growth for us, Gary and, and it's going to continue to, but we don't specifically break out the number. I'd also say that even though the skews were flat in the quarter, the total total new product sales dollars versus the same quarter last year were actually up, that's, that's going to happen from a, you know, a function not only just units being up, but also average selling prices are up as we continue to focus on more complex parts.

這仍然是我們加里成長的強大推動力，而且還會繼續下去，但我們沒有具體透露具體數字。我還想說，儘管本季的偏差持平，但與去年同期相比，新產品銷售總額實際上有所上升，也就是說，這將發生在一個函數中，而不僅僅是隨著我們繼續專注於更複雜的零件，單位數量不斷增加，平均售價也隨之上漲。

Okay? I mean, that's helpful.

好的？我的意思是，這很有幫助。

And then getting back to the heavy duty. You're hearing that the market is stabilizing. So, is the thought process that versus 20 versus what's happened in 2024 that it'll be flattish in 25 and then maybe increase in the 2026 as these new mission requirements, especially in Europe come in for 2020 seven.

然後回到繁重的工作。您聽說市場正在穩定。因此，與 20 與 2024 年發生的情況相比，25 中的情況將持平，然後隨著這些新的任務要求（尤其是在歐洲）在 2020 年出現 7 項，到 2026 年可能會有所增加。

You know, we haven't released guidance for 2025 at this point yet. Gary. But what I will say is that we're not going to plan on a significant inflection of growth.

您知道，我們目前尚未發布 2025 年的指導。加里.但我要說的是，我們不會計劃對成長進行重大調整。

You know, in 2025 we, we it's just too cloudy right now. We do hope that it's going to inflect. So our focus right now is to continue to work on new product development, which is again, get that flywheel of new product into the market which will drive growth for years to come and productivity initiatives across the business. So when it does inflect, we'll be well positioned to ride that wave up.

你知道，到了 2025 年，我們現在天氣太陰沉了。我們確實希望它會有所改變。因此，我們現在的重點是繼續致力於新產品開發，也就是說，將新產品的飛輪推向市場，這將推動未來幾年的成長和整個企業的生產力計劃。因此，當它確實發生變化時，我們將處於有利位置，可以乘風破浪。

Okay. Thank you.

好的。謝謝。

Got it.

知道了。

There's no further question at this time that concludes today's call. Thank you all for joining and you may now disconnect.

目前沒有其他問題可以結束今天的電話會議。感謝大家的加入，現在可以斷開連線了。