Energy Recovery Inc (ERII) 2024 Q3 法說會逐字稿

Good day. Ladies and gentlemen and welcome to the Energy Recovery third quarter earnings call. Our host for today's call is Lionel mcd. At this time, all participants are in a listen-only mode later, we will conduct a question-and-answer session. If a question should arise during the presentation, please press star and the number one on your telephone keypad to enter the queue. I would like to now turn the call over to your host, Mr mcd.

再會。女士們、先生們，歡迎參加能源回收第三季財報電話會議。今天電話會議的主持人是 Lionel mcd。目前，所有參與者都處於聆聽模式，稍後我們將進行問答環節。如果示範過程中出現問題，請按下電話鍵盤上的星號和數字 1 進入佇列。現在我想將電話轉給主持人 mcd 先生。

Good afternoon, everyone. Welcome to Energy Recovery's 2024 3rd quarter earnings conference call. We appreciate you joining us. I'm Lionel mcd, Director of Investor Relations at Energy Recovery and I am joined here today by our President and Chief Executive Officer David Moon and our Chief Financial Officer, Mike Mancini. The prerecorded remarks from today's call are available on the investor section of our website and are meant to accompany the third quarter earnings news release which is posted in the same location during today's call. We may make projections and other forward-looking statements under the safe harbor provisions contained in the private securities litigation reform Act of 1,995 regarding future events or the future financial performance of the company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance cost structure and business strategy. Forward-looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates and projections, forward-looking statements are not guaranteed of future performance and are subject to certain risks, uncertainties and other factors. We refer you to documents, the company files from time to time with the sec specifically, the company's form 10-K and form 10-Q. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. All statements made during this call are made only as of today, October 30th 2024. And the company expressly disclaims any intent or obligation to update any forward-looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law and lastly for your planning purposes, please note that our fourth quarter and full year earnings conference call is scheduled for Wednesday, February 26th 2025. And with that, I will turn the call over to David.

大家下午好。歡迎參加 Energy Recovery 2024 年第三季財報電話會議。感謝您的加入我們。我是 Energy Recovery 的投資者關係總監 Lionel mcd，今天與我一起出席活動的還有我們的總裁兼執行長 David Moon 和財務長 Mike Mancini。今天電話會議的預先錄製的評論可在我們網站的投資者部分找到，並將與今天電話會議期間在同一位置發布的第三季度收益新聞稿一起發布。我們可能會根據 1995 年私人證券訴訟改革法案中的安全港條款對未來事件或公司未來財務表現做出預測和其他前瞻性陳述。這些聲明可能會討論我們的業務、經濟和市場前景、成長預期、新產品及其性能成本結構和業務策略。前瞻性陳述是基於我們目前所掌握的資訊以及管理階層的信念、假設、估計和預測，前瞻性陳述不能保證未來的表現，並且受某些風險、不確定性和其他因素的影響。我們請您參閱本公司不時向證券交易委員會提交的文件，具體來說是本公司的 10-K 表格和 10-Q 表格。這些文件確定了可能導致實際結果與我們的預測或前瞻性陳述有重大差異的重要因素。本次電話會議中的所有聲明均截至今天（2024 年 10 月 30 日）為止。並且，除非法律另有要求，本公司明確表示不打算或有義務更新本次電話會議中做出的任何前瞻性陳述，以反映後續事件或情況。說完這些，我會把電話轉給大衛。

Thanks Lionel and thank you for joining us today.

謝謝 Lionel，謝謝您今天加入我們。

As Lionel mentioned, we are joined today for the first time on our quarterly earnings call by Energy Recovery's new CFO Mike Mancini who started on August 5th.

正如萊昂內爾所提到的，今天，我們首次在季度財報電話會議上與 Energy Recovery 的新任財務長 Mike Mancini 一起參加會議，他於 8 月 5 日上任。

I want to say how grateful I am for Mike's partnership and the work he's already done.

我想表達我對麥克的合作以及他已完成的工作的感激。

As I mentioned last quarter, Mike brings a wealth of experience in high growth, engineering and technology companies.

正如我上個季度提到的，Mike 在高成長、工程和技術公司方面擁有豐富的經驗。

He has had executive leadership roles in finance where he demonstrated his ability to drive financial strategy and performance across the entire enterprise.

他曾擔任過財務領域的高階主管職務，展現了推動整個企業財務策略和績效的能力。

Additionally, his background with the institutional investment community provides him with a deep understanding of capital markets which makes him a valuable asset to our leadership team.

此外，他在機構投資界的背景使他對資本市場有了深刻的了解，這使他成為我們領導團隊的寶貴資產。

Now, before I get into the third quarter, financial results, I will make a brief comment on our strategic planning process for the playbook as we call it.

現在，在介紹第三季的財務表現之前，我將簡要地評論我們所謂的劇本的策略規劃過程。

Although we won't be getting into any of the specifics of the playbook on this call. We are hosting a live investor webinar on November 18th for members of my senior leadership team will present our playbook including growth plans for desalination, wastewater and Co two.

不過，我們不會在此通話中討論劇本的任何細節。我們將於 11 月 18 日為我的高階領導團隊成員舉辦一場現場投資者網路研討會，介紹我們的策略，包括海水淡化、廢水和 Co-two 的成長計畫。

We will also provide guidance for 2025 and 2026 as well as provide long term 2029 financial targets.

我們還將提供 2025 年和 2026 年的指導以及 2029 年的長期財務目標。

The webinar will take place at 10 a.m. Eastern time and will last approximately two hours including the live Q&A session.

網路研討會將於東部時間上午 10 點舉行，持續約兩小時（包括現場問答環節）。

The event will be accessible virtually via the link located on the IR calendar section of energy recovery's IR website and a replay of the event will also be archived there.

可以透過能源回收 IR 網站的 IR 日曆部分上的連結虛擬存取該活動，並且該活動的重播也將存檔在那裡。

Additional details can be found in our press release issued on October the 21st.

更多詳細資訊請參閱我們 10 月 21 日發布的新聞稿。

Now let's move into the third quarter update first. Let me start by saying thank you to our employees for helping deliver another very solid quarter with total revenue of $38.6 million. We achieved the upper end of our guidance for the quarter and set another quarterly revenue record.

現在讓我們先進入第三季的更新。首先，我要感謝我們的員工，感謝他們幫助我們實現了另一個非常穩健的季度，總收入達到 3,860 萬美元。我們實現了本季預期的上限並創下了季度收入的新高。

Now, while we still have considerable work to do to deliver what stands to be the largest quarter in the company's history in the fourth quarter, our third quarter performance did create a line of sight to achievement of our full-year guidance of $140 to $150 million.

現在，雖然我們還有很多工作要做，才能在第四季度實現公司歷史上最大的季度業績，但我們第三季的業績確實為實現我們全年 1.4 億至 1.5 億美元的預期目標創造了條件。

As I've said the last couple of quarters, the demands on the team to deliver on these mega projects are only increasing.

正如我在過去幾個季度所說的那樣，對團隊完成這些大型專案的要求只增不減。

With that said, I remain confident in our ability to deliver. What would be the biggest quarter in energy recovery's history capping off what will be the 11th consecutive year of revenue growth and another year of strong market share in our mega project channel.

儘管如此，我仍然對我們的交付能力充滿信心。這將是能源回收史上最大的一個季度，標誌著我們連續第 11 年實現營收成長，並再次在我們的大型專案通路中佔據強勁的市場份額。

Let me talk briefly about our high level segment results before turning it over to Mike for the financial results.

在將財務結果轉交給麥克之前，讓我簡單談談我們的高水準分部表現。

Let's start with water, water revenue came in at $38.3 million. An increase of 4% compared to the third quarter of 2023 and up 42% compared to the second quarter of 2024.

我們先從水開始吧，水收入為 3830 萬美元。與 2023 年第三季相比成長 4%，與 2024 年第二季相比成長 42%。

This reflects the high end of our guidance for the third quarter of $35 to $39 million and continues the prior quarter's solid growth in mega projects results were driven by continued strong demand in the Middle East and North Africa as well as demand from India.

這反映了我們對第三季 3,500 萬至 3,900 萬美元的高端預期，並延續了上一季大型專案業績的穩健成長，這得益於中東和北非以及印度持續強勁的需求。

I'd like to highlight several notable desal shipments made during the quarter.

我想重點介紹本季幾次值得注意的海水淡化出貨情況。

First, we completed the second and final shipment of the per project in Chennai, India for $4.1 million.

首先，我們完成了印度金奈計畫的第二批也是最後一批貨物的運輸，價值 410 萬美元。

As we mentioned previously during our July earnings call once constructed, this will be the largest desalination plant in India delivering 400,000 cubic meters per day.

正如我們在 7 月財報電話會議上提到的那樣，該廠一旦建成，將成為印度最大的海水淡化廠，日供水量達 40 萬立方公尺。

Also as a reminder, the per project was just one of the projects included in the $15 million in contracts that we announced in July for several wro desalination plants in India for the remaining four projects. Under these contracts, we shipped $8.3 million and expect to complete the additional $2.6 million of shipments in the fourth quarter.

另外提醒一下，該工程只是我們 7 月宣布的價值 1500 萬美元的印度幾座 WRO 海水淡化廠合約中的一個項目，其餘四個項目也包含在內。根據這些合同，我們運送了價值 830 萬美元的貨物，並預計在第四季度完成另外 260 萬美元的運送。

Altogether, these plants will provide over 670,000 cubic meters of clean drinking water to communities in India each day.

總之，這些工廠每天將向印度社區提供超過 67 萬立方公尺的清潔飲用水。

We also made progress on the Hosn IP P project in Dubai UAE during the third quarter, which was construct, which once constructed will be the largest desalination plant in Dubai providing 820,000 cubic meters per day.

第三季度，阿聯酋杜拜Hosn IP P計畫的建設也取得了進展，該計畫建成後將成為杜拜最大的海水淡化廠，每日供水量達82萬立方公尺。

As of our last call in July, we had shipped the first phase as of today. I'm pleased to report that we shipped a total of $10.5 million year-to-date and expect to ship the final $5.3 million in Q4.

截至我們 7 月的最後一次通話，我們今天已發貨第一階段。我很高興地報告，今年迄今為止我們共出貨 1050 萬美元，預計第四季將出貨最後的 530 萬美元。

In addition to these shipments, we also continue to secure major desalination contracts in recent months.

除了這些貨物外，近幾個月我們還繼續簽訂主要的海水淡化合約。

In August, we signed contracts totaling $27.5 million for SWRO desalination projects in Morocco.

8月份，我們簽署了摩洛哥SWRO海水淡化項目合同，總額為2750萬美元。

These projects will supply over one million cubic meters per day of potable water for municipal and agricultural use, which represents enough water for more than 600,000 Moroccans.

這些計畫將為市政和農業提供每天超過一百萬立方公尺的飲用水，足以超過60萬摩洛哥人使用。

As of today, we have shipped $12.3 million of that total order.

截至今天，我們已發貨了總價​​值 1,230 萬美元的訂單。

The balance of the order is currently expected to be filled in 2024. However, we are closely monitoring this timing given an end, an end of December target shipping day.

目前預計訂單餘額將於2024年完成。然而，我們正在密切關注這一時間安排，因為 12 月底是目標發貨日。

North Africa continues to be an important driver of growth for our water business. With secular trends such as ongoing drought, industrial growth and populate population growth continuing to generate strong demand for SWRO desalination plants.

北非繼續成為我們水務業務成長的重要推動力。持續乾旱、工業成長和人口成長等長期趨勢持續對 SWRO 海水淡化廠產生強勁需求。

Earlier this month, we announced contract awards totaling over $12 million for three SWRO desalination projects in the United Arab Emirates.

本月初，我們宣布了阿拉伯聯合大公國三個 SWRO 海水淡化項目的合約授予，總額超過 1,200 萬美元。

The plans include capacity totaling close to one million cubic per day, cubic meters per day and as a proof point as to the manufacturing improvements we have made, our intent is to ship nearly all of these orders in the fourth quarter.

該計劃包括總產能接近每天一百萬立方米，作為我們已經取得的製造改進的證明，我們打算在第四季度發貨幾乎所有這些訂單。

Both contract awards and their shipment dates were on our radar and therefore included in our 2024 financial guidance based on our strong third quarter results and our expectations for additional shipments in the fourth quarter.

這兩份合約授予及其出貨日期都在我們的關注範圍內，因此根據我們強勁的第三季業績和對第四季度額外出貨量的預期，將其納入我們的 2024 年財務指引中。

We are maintaining our revenue guidance of $140 to $150 million for the year.

我們維持今年 1.4 億至 1.5 億美元的營收預期。

Now, as we provided in previous quarters, our current 2024 total water revenue as at the end of the third quarter, which includes revenue recognized in the first nine months of the year.

現在，正如我們在前幾個季度提供的那樣，截至第三季末，我們目前的 2024 年總水收入包括今年前九個月確認的收入。

And sign projects under contract yet to be delivered totals approximately $137 million or 94% of the midpoint of our Gotti range for 2024.

已簽訂但尚未交付的合約項目總額約為 1.37 億美元，佔 2024 年 Gotti 範圍中位數的 94%。

This compares to roughly $136 million or 100% of the guide range at the same at the same time in 2023.

相較之下，2023 年同期的價格約為 1.36 億美元，或為指導價格範圍的 100%。

With this substantial progress towards our full year guidance underpins our confidence in reaffirming our guided range for the full year.

隨著我們朝著全年目標邁出實質的一步，我們有信心重申全年的指導範圍。

We cannot control customer driven delays or slippage.

我們無法控制因客戶原因造成的延誤或失誤。

With that said we continue to collaborate closely with our customers and we remain focused on strong execution in the fourth quarter to complete our remaining shipments and to deliver our four year guidance in the event of unforeseen circumstances cause slippages towards the end of the year.

話雖如此，我們仍將繼續與客戶密切合作，並繼續專注於第四季度的強勁執行，以完成我們剩餘的出貨量，並在年底出現不可預見的情況導致下滑的情況下實現我們的四年指導目標。

I'd like to reiterate that the associated revenue would not be at risk but would simply be recognized in 2025 rather than in the fourth quarter of 2024.

我想重申，相關收入不會面臨風險，而只會在 2025 年而不是 2024 年第四季確認。

Now turn to wastewater.

現在來談談廢水。

Our wastewater pipeline continues to grow and we've increased our signed wastewater contracts by almost 46% as compared to last year. During the same period, our strategic diversification strategy for water is underway and we are making progress in our product portfolio expansion for the year. We expect to generate revenue towards the lower end of our previous provided guided range of $12 million to $15 million.

我們的廢水管道持續成長，與去年相比，我們簽署的廢水合約增加了近 46%。在同一時期，我們針對水業務的策略多元化策略正在進行中，並且我們在今年的產品組合擴展方面取得了進展。我們預計收入將達到我們之前提供的 1200 萬美元至 1500 萬美元指導範圍的低端。

This is primarily the result of a wastewater mega project. The Neom project in Saudi Arabia that's transitioned to a longer term phase project over multiple years.

這主要是大型廢水處理計畫的成果。沙烏地阿拉伯的 Neom 計畫已轉變為一個耗時多年的長期階段計畫。

However, we expect to offset this impact through continued our performance that we're seeing in the OEM channel.

然而，我們希望透過繼續保持我們在 OEM 管道的表現來抵消這種影響。

We will share more details on our progress and our strategy for wastewater during our investor webinar on November 18th overall, we feel that the air pocket created by rapidly rising interest rates, inflationary effects and concerns around the global economic activity have begun to moderate.

我們將在 11 月 18 日的投資者網路研討會上分享更多關於我們的進度和廢水策略的細節。

Clearly, there are still economic and geopolitical concerns around the globe but the long term trend for fresh water demand remain intact and we continue to see solid growth ahead.

顯然，全球仍然存在經濟和地緣政治問題，但淡水需求的長期趨勢保持不變，我們將繼續看到未來穩定成長。

Now let's move to our CO2 business.

現在讓我們來談談二氧化碳生意。

We continue to make progress in the development and commercialization of our second generation PX G as I stated during our last call in the second quarter, we completed our first gating item for 2024 which was the successful completion of lab testing.

我們在第二代 PX G 的開發和商業化方面繼續取得進展，正如我在第二季度的上次電話會議上所說，我們完成了 2024 年的第一個門控項目，即成功完成實驗室測試。

During the third quarter. We turned our focus to our second gating item which is the installation of 30 to 50 sites by the end of Q4, 2024 I am pleased to report that we reached our initial goal of having at least 10 sites installed and operating across the US and Europe.

在第三季。我們將重點轉向第二個門控項目，即到 2024 年第四季末安裝 30 到 50 個站點，我很高興地報告，我們實現了最初的目標，即在美國和歐洲安裝並運營至少 10 個站點。

In fact, we've now completed the installation of a total of 11 sites here to date.

事實上，迄今為止我們已經在這裡完成了總共 11 個站點的安裝。

With that site goal reached, we were able to complete the collection of critical summer data.

隨著該站點目標的實現，我們能夠完成關鍵夏季數據的收集。

As I discussed during our last call, we partnered with DC Engineering, a highly respected third-party engineering firm to measure and verify energy savings provided by our second generation PX G at six of the 10 initial sites.

正如我在上次電話會議中討論的那樣，我們與一家備受尊敬的第三方工程公司 DC Engineering 合作，在最初的 10 個站點中的 6 個站點測量並驗證了我們的第二代 PX G 帶來的能源節省。

I'm pleased to report that. In that collaboration with DC Engineering, we recently published a white paper on these results which we believe will be the catalyst for our OEM partners and for us to accelerate PX G adoption. But then users in the near term, the white paper can be found on our website. The results were better than expected showing that the PX G reduces energy consumption, increase its cooling capacity and improve system stability.

我很高興地報告這一點。在與 DC Engineering 的合作中，我們最近發布了一份關於這些結果的白皮書，我們相信這將成為我們 OEM 合作夥伴和我們加速 PX G 採用的催化劑。但近期用戶可以在我們的網站上找到白皮書。結果好於預期，顯示PX G降低了能耗，提高了冷卻能力並提高了系統穩定性。

The findings showed that the PX G improved the leading metric of energy efficiency or the coefficient of performance by peaks up to 30% with as much as 15% in projected annual energy savings.

研究結果表明，PX G 將能源效率的主要指標或性能係數提高了高達 30%，預計每年可節省高達 15% 的能源。

In addition to energy efficiency, findings estimate that the PXT increases cooling capacity for co two refrigeration systems by up to 15% and 95 °F or 35 °C providing operational flexibility to safeguard against heat waves based on the success of the ongoing measurement and verification processes.

除了能源效率之外，研究結果還估計，根據正在進行的測量和驗證過程的成功，PXT 可將二氧化碳冷卻系統的冷卻能力提高 15% 和 95°F 或 35°C，從而提供操作靈活性以防範熱浪。

During the third quarter, multiple OEMs began to process began the process of integrating the PG into their co two trans critical racks.

在第三季度，多家 OEM 開始著手將 PG 整合到他們的兩個跨關鍵機架中。

This is a necessary and important step towards full commercialization of the PX G.

這是實現PX G全面商業化的必要且重要的一步。

We are highly encouraged by the test results and the resulting integration by our OEM partners.

測試結果以及我們的 OEM 合作夥伴的整合令我們感到非常鼓舞。

Adding to our momentum, we currently have 19 additional sites to be commissioned for installation in the coming months including the 11 sites already installed and operating.

為了進一步增強我們的發展勢頭，我們目前還有 19 個站點將在未來幾個月內投入安裝，其中包括 11 個已經安裝並投入營運的站點。

We're on a clear path towards meeting the low end of our target of 30 to 50 sites installed by the end of this year.

我們正朝著實現今年年底安裝 30 到 50 個站點的目標邁進。

Additionally, our pipeline of additional sites has grown meaningfully as the industry has gained awareness of the PX G technology where you're in discussions with existing customers to expand installed sites and with new O ems for new sites across the US and Europe momentum for the PX G is clearly accelerating.

此外，隨著業界對 PX G 技術的認識不斷提高，我們的附加站點管道也顯著增長，我們正在與現有客戶討論擴大已安裝站點，並與新 O E 在美國和歐洲建立新站點，PX G 的發展勢頭明顯加快。

I look forward to sharing additional details on our progress and strategy for Co Two and wastewater.

我期待分享有關我們在 Co Two 和廢水方面的進展和策略的更多細節。

During our upcoming webinar.

在我們即將舉行的網路研討會期間。

With that, I'd like to hand it over to Mike to discuss our financial results for the quarter.

現在，我想把話題交給麥克來討論我們本季的財務表現。

Thank you, David. And let me start by saying, thanks to you and to the board for your trust and confidence in me to lead the finance function here at energy recovery.

謝謝你，大衛。首先，我要感謝您和董事會對我的信任和信心，讓我能領導能源回收的財務職能。

Before arriving, I was excited about the company's core business prospects, the exciting opportunities to grow and expand the reach of the PX technology and the opportunity to drive profitability and cash flow.

在加入之前，我對公司的核心業務前景、發展和擴大 PX 技術影響力的激動人心的機會以及提高盈利能力和現金流的機會感到興奮。

After almost three months on the job, I'm now confident in the company's ability to create value for shareholders. And I look forward to working with the team on driving financial results.

上任近三個月後，我現在對公司為股東創造價值的能力充滿信心。我期待與團隊合作推動財務表現。

I'd like to begin by discussing our revenue, gross margin and product mix.

我想先討論一下我們的收入、毛利率和產品組合。

Then I'll discuss our operating expense, net income and cash position as well as our expectations for the full year. 2024.

然後我將討論我們的營運費用、淨收入和現金狀況以及我們對全年的預期。2024年。

As David mentioned, we had a solid quarter of revenue generating $38.6 million at the upper end of our guidance.

正如戴維所提到的，我們本季的營收表現穩健，達到了 3,860 萬美元，超出了我們的預期上限。

The project driven lumpy nature of our mega project channel has become quite evident to me even in the short time, I've been here. Q4 revenue is expected to be between $62 million and $72 million which will represent over 45% of our full year revenue at the midpoint.

儘管我來這裡的時間並不長，但是我們大型專案管道以專案為主導的塊狀特性對我來說已經變得非常明顯。預計第四季營收在 6,200 萬美元至 7,200 萬美元之間，占我們全年營收的 45% 以上。

In the fourth quarter alone, five projects represent approximately 50% of the revenue with a single project representing over 20%. Any delays in shipment dates on those projects could have an impact on our full year revenue. Although there would be a minimal impact to the intrinsic value of the business of such delays

僅在第四季度，五個項目就佔了約 50% 的收入，其中單一項目佔比超過 20%。這些項目的出貨日期的任何延遲都可能對我們的全年收入產生影響。儘管這種延遲對業務的內在價值影響很小

Moving to margins. Our gross margin improved 50 basis points when compared to the second quarter of the year with the third quarter coming in at 65.1% above our previously guided range of 62% to 64%. For the third quarter.

移至邊緣。與今年第二季相比，我們的毛利率提高了 50 個基點，第三季的毛利率達到 65.1%，高出我們先前預期的 62% 至 64% 的範圍。第三季。

We believe we've turned the corner in our efforts to manage and resolve challenges related to our ramp up in production of the Q400.

我們相信，我們在管理和解決與 Q400 產量提升相關的挑戰方面的努力已經取得了進展。

And our gross margin expectation for the fourth quarter is 64% to 68% which would put our full year gross margin guidance within our guided range of 64% and 67%.

我們對第四季度的毛利率預期為 64% 至 68%，這將使我們的全年毛利率預期處於 64% 至 67% 的指導範圍內。

Regarding product mix. On our last call, we stated that the Q400 was trending towards 50% of our water PX demand for 2024. Up from our original expectation of 25% during the third quarter, the Q400 comprised approximately 45% of our water PX demand reinforcing our expectation for 50% product mix for the full year.

關於產品組合。在我們上次電話會議中，我們表示 Q400 將佔 2024 年水 PX 需求的 50%。高於我們最初對第三季 25% 的預期，第四季約占我們水用 PX 需求的 45%，強化了我們對全年 50% 產品組合的預期。

This faster than expected adoption of the Q400 highlights our product leadership position in the mega project desalination Space and underscores our ability to align our solutions with customers evolving needs.

Q400 的採用速度比預期更快，凸顯了我們在大型海水淡化專案領域的產品領導地位，並強調了我們根據客戶不斷變化的需求調整解決方案的能力。

Our operating expenses for the third quarter were $18.1 million which came in below our previously guided range of 21 to $22 million for the quarter. Onetime costs for the quarter were $1.1 million. As a result, a Base Opex for the quarter was $17 million, a 1% increase from the same period last year.

我們第三季的營運費用為 1,810 萬美元，低於我們先前預測的 2,100 萬至 2,200 萬美元的範圍。本季的一次性成本為 110 萬美元。因此，本季基本營運支出為 1,700 萬美元，比去年同期增加 1%。

So, while our focus on cost and capital efficiency are working, we do expect to continue to experience some one-time costs associated with the work in support of our long-term growth strategy and some added employee count to support our growth. Still, we will be able to capture the benefit of our cost efforts and are reducing our full year Operating Expense guidance to $76 to $78 million from the previous $78 to $80 million, which still includes the estimated $7 million in one-time costs we have indicated before. This implies expected Operating Expense for the fourth quarter of approximately $20 to $22 million and full year 2024 Base Opex of $69 to $71 million.

因此，雖然我們對成本和資本效率的關注正在發揮作用，但我們確實預計將繼續經歷一些與支持我們的長期成長策略的工作相關的一次性成本以及為支持我們的成長而增加的一些員工人數。儘管如此，我們仍能從成本控制工作中獲益，並將全年營運費用預期從之前的7800萬至8000萬美元下調至7600萬至7800萬美元，其中仍包括我們之前提到的預計700萬美元的一次性成本。這意味著第四季預期營運費用約為 2,000 萬至 2,200 萬美元，2024 年全年基本營運支出為 6,900 萬至 7,100 萬美元。

Additionally, we reported income from operations for the third quarter of $7.1 million in line with our expectation provided on our last call to move to a positive operating income. As the year progresses, we also reported net income for the quarter of $8.5 million reflecting a substantial increase compared to the second quarter.

此外，我們報告第三季的營業收入為 710 萬美元，符合我們上次電話會議中提出的轉為正營業收入的預期。隨著時間的推移，我們也報告本季淨收入為 850 萬美元，與第二季相比大幅成長。

Lastly, we maintained our cash balance during the quarter with cash and investments of $139.9 million as of the end of the third quarter compared to $138 million. At the end of the second quarter, we remain in a very strong financial position, and we expect to end the year at between $140 to $150 million of cash depending on collections with that. I'd like to turn it back over to David for a few closing remarks.

最後，我們在本季維持了現金餘額，截至第三季末，現金和投資為 1.399 億美元，而上季為 1.38 億美元。在第二季末，我們的財務狀況仍然非常強勁，我們預計今年年底的現金餘額將在 1.4 億至 1.5 億美元之間，具體取決於收款情況。我想將發言權交還給戴維，請他做最後幾點發言。

Thank you, Mike.

謝謝你，麥克。

To sum up, we delivered a record third quarter and while there is still work ahead of us to execute the fourth quarter, we remain confident in our full year revenue guidance of $140 to $150 million.

總而言之，我們第三季的業績創下了紀錄。

We remain on track to generate $12 to $15 million in revenue from our wastewater business. Although we anticipate this will come in towards the lower end of that range.

我們的廢水處理業務仍有望創造 1,200 萬至 1,500 萬美元的收入。儘管我們預計這個數字將接近該範圍的低端。

We are on track to deliver the low end of 30 to 50 sites with our second generation PX G installed. By the end of the year, we are maintaining our gross margin guidance of 64% to 67% and we are reducing our operating expense guidance from $76 to $78 million with that.

我們正按計劃安裝 30 到 50 個低端站點，並安裝第二代 PX G。到今年年底，我們將維持 64% 至 67% 的毛利率預期，並將營運費用預期從 7,600 萬美元下調至 7,800 萬美元。

Now, let's move to Q&A.

現在，我們進入問答環節。

If you would like to ask a question at this time, please press star. Then the number one on your telephone keypad once again to ask a question, press star. Then the number one on your telephone keypad now and you'll be placed in the queue in the order received.

如果您此時想要提問，請按星號。然後再按下電話鍵盤上的數字 1 來提問，按星號。然後按電話鍵盤上的數字 1，您將按照收到的順序進入隊列。

Your first question comes from Ryan FST with B Riley. Your line is open.

您的第一個問題來自 B Riley 的 Ryan FST。您的線路已開通。

Hey guys, thanks for taking.

嘿夥計們，感謝你們的收看。

My questions.

我的問題。

Right?

正確的？

Not to get ahead of the webinar, but I was wondering if you could talk about the competitive landscape in CO2. Is anyone else attempting to do what you guys are doing with the PXG?

我不想搶在網路研討會之前發言，但我想知道您是否可以談談二氧化碳的競爭格局。有其他人嘗試使用 PXG 做你們所做的事情嗎？

No, no, no other pressure exchange or competition that we see of today. Now, as you know, we compete against other, other technologies for applications in the, in the space but no, no one with the pressure exchange.

不，不，沒有我們今天看到的其他壓力交換或競爭。現在，如你所知，我們在該領域的應用上與其他技術競爭，但沒有人進行壓力交換。

So David and then I guess for my second question on your capital allocation strategy, wondering how you're thinking about the potential for share repurchases with the strong cash balance you have now and maybe if you could remind us you know, of the capital requirements needed for the CO2 opportunity. I know it's still early stage but is there, is there any meaningful cash needed as that opportunity? Ramps.

所以大衛，我想我的第二個問題是關於你的資本配置策略，想知道你如何考慮利用你現在擁有的強大現金餘額進行股票回購的可能性，也許你能否提醒我們二氧化碳機會所需的資本要求。我知道現在還處於早期階段，但是這個機會是否需要大量的現金？坡道。

Hey Ryan, this is Mike. So I think we're going to, we're going to get into that on the webinar. We'll lay out all of our growth strategy plans, capital needs and roll out a capital allocation policy. So we will be talking about that on November 18th.

嘿，Ryan，我是 Mike。所以我認為我們將在網路研討會上深入討論這個問題。我們將制定所有的成長策略計畫、資本需求並推出資本配置政策。因此我們將在 11 月 18 日討論這個問題。

Understood. Thanks for taking my questions.

明白了。感謝您回答我的問題。

Thanks, Ron.

謝謝，羅恩。

Your next question comes from Pavel Molchanov with Raymond James. Your line is open.

您的下一個問題來自 Raymond James 的 Pavel Molchanov。您的線路已開通。

Yeah. Thank. Thanks for taking the question. Let me start with kind of a high level one about Decel.

是的。感謝。感謝您回答這個問題。讓我先從關於 Decel 的高層次問題開始。

Are you observing any geographic diversification of your customer mix, away from the Middle East and towards newer DESELL markets.

您是否觀察到客戶結構的地理多樣化，從中東轉向新的 DESELL 市場。

Hi, this is David. Nice to, nice to talk to you. No, still, you know, the concentration still is favoring Middle East Africa. It, you know, and in the, in the third quarter as it's done really all of this year, you know, we're, we're up over 70% of our revenue for the quarter came from the NE A and then about 60% came from for the first nine months of the year came from MB A. So we're still very reliant on, on, on that part of the world and we'll, and we'll look to continue to be that as you'll, as you'll hear in the webinar, the mid Middle East and Africa will continue to play a very important part of our, our mix over the next five years.

你好，我是大衛。很高興，很高興與您交談。不，您知道，焦點仍然集中在中東和非洲。您知道，在第三季度，也就是今年全年，我們本季度超過 70% 的收入來自東北 A，而今年前九個月約 60% 的收入來自中東北非 A。 所以我們仍然非常依賴那個地區，而且我們會繼續這樣做，正如您在網絡研討會上聽到的那樣，未來五年，中東和非洲將繼續在我們的業務組合中發揮非常重要的作用。

On the refrigeration side. I remember, this is now a couple of years ago, you signed a strategic partnership in the Netherlands with a fuel technique.

在冷凍方面。我記得，幾年前，你們在荷蘭簽署了一份關於燃料技術的策略夥伴關係。

Yeah, they're still going strong.

是的，他們依然很強大。

Yeah. And, and in Italy with, with Etna Group, have there been any other European partners that you've signed up?

是的。在義大利，除了埃特納集團 (Etna Group)，您是否還與其他歐洲合作夥伴簽約了？

No, that's, that's, we're, we've got a number of new faces that we're talking to up of at the moment, but in terms of, of, of official sort of partnerships, it's ATA and its view at the moment in Europe.

不，那是，那是，我們目前正在與一些新面孔進行交談，但就官方合作而言，這是 ATA 及其目前在歐洲的觀點。

And is the I guess the go to market strategy for refrigeration. I'm, I'm, I'm sure you'll touch on that in a few weeks here. But is it going to remain kind of centered around a select list of partners or, or is there a better approach to getting, getting the word out about this product?

我猜這是冷凍市場的行銷策略。我，我，我確信幾週後你就會談到這一點。但是它是否仍然將圍繞精選的合作夥伴名單，或者是否有更好的方法來宣傳該產品？

No, O EMS is still, you know, in this supermarket phase. O EMS is still the past to get to the ultimately to get to the end users. It doesn't mean we're not talking to end users directly. But ultimately, the O EMS is where we have to get our PXG integrated into their systems and thus get ourselves speced officially speced within a supermarket. And so to do that, we've got to go through the O Ems.

不，您知道，O EMS 仍然處於超市階段。O EMS 仍是過去式，最終是到達最終用戶。這並不意味著我們沒有直接與最終用戶交談。但最終，我們必須將 PXG 整合到 O EMS 的系統中，從而在超市內獲得官方規格。為了做到這一點，我們必須通過 O Ems。

All right, we'll we'll save the rest until November 18th. Looking forward to it.

好的，我們將把剩餘的部分留到 11 月 18 日。非常期待。

Thanks for that.

謝謝。

Your next question comes from Jason Bandel with Evercore Isi your line is open.

您的下一個問題來自 Evercore Isi 的 Jason Bandel，您的熱線已開通。

Great. Thanks for taking my question. My, my first one is for for Mike, you've been the CFO seat now for almost three months, like you said, and in the markets, you touched on what attracted you to the company. Just curious, what were some of your initial impressions being inside the company so far? And what are some of the initiatives that you've been focusing on? Of course, in addition to the playbook work?

偉大的。感謝您回答我的問題。我的第一個問題是問麥克，正如您所說，您擔任財務長已經近三個月了，在市場方面，您談到了是什麼吸引您加入這家公司。只是好奇，到目前為止，您對這家公司最初的印像是什麼？您一直關注哪些措施？當然，除了劇本之外還有什麼工作？

Yeah. Thanks for the question, Jason. So you've been here almost three months now. And I think largely what I expected coming in has has has been true. And that really is, I think the key word for me is opportunity. There is opportunity for efficiency and manufacturing, opportunity for efficiency and cost, there's opportunity for growth, there's opportunity for capital and how we allocate it. And just a lot of things where we can bring my expertise in finance to the team along with the other new executives here to really focus on profitable growth going forward.

是的。謝謝你的提問，傑森。你已經來這裡快三個月了。我認為，我所預期的大部分內容都已成真。確實，我認為對我來說關鍵字是機會。這裡有效率和製造的機會、效率和成本的機會、成長的機會、資本和我們如何分配資本的機會。我們可以將我在財務方面的專業知識以及其他新主管帶到團隊中，真正專注於未來的獲利成長。

Got it makes sense. I'm looking forward to working with you. Next in Refri refrigeration, David. I'm just curious in the white paper was the performance of the PXG consistent across the six sites that were monitored by DC engineering.

明白了，有道理。我期待與您合作。接下來是 Refri 製冷，大衛。我只是好奇白皮書中 PXG 的表現在 DC 工程監控的六個站點中是否一致。

Yeah, consistent depending on temperature variation, right? Whether you know Canada versus Southern California. So there's a bit of that variation. But what was consistent was the energy savings of the capacity increase now that now it differed, the amount of energy savings and, and capacity increase differ depending on location. But we got, we got both of those out of all the locations that we've been tracking.

是的，根據溫度變化而一致，對嗎？您是否了解加拿大和南加州。因此存在一些變化。但一致的是，現在容量增加所帶來的能源節省量有所不同，能源節省量和容量增加量因地點而異。但是，我們在所有追蹤的地點中都找到了這兩個地點。

And in terms of the remaining sites for the year, now that you have the performance data in hand in this white paper, how are you prioritizing the deployment there for the remaining sites?

就今年剩餘的站點而言，既然您已經掌握了白皮書中的性能數據，那麼您將如何優先安排剩餘站點的部署？

Yeah. So, so the remaining sites are going to be a combination of Europe us oo existing oemoem customers versus new OEM customers. And so, and so we've got a site selection tool that we use to ensure that we optimize the sites that you know, that we work with on the, with the O ems on selecting. And so we're ensuring that we're using that site selection tool for optimization to make sure we get, you know, the right site early on. So we'll continue to use that process. But otherwise it's it's, you know, we're we've got the capacity to do these, you know, these these other 20 sites or so for the remainder of the year.

是的。因此，剩餘的站點將是歐洲和美國現有 OEM 客戶與新 OEM 客戶的組合。因此，我們有一個網站選擇工具，我們用它來確保優化我們與 O EMS 合作選擇的網站。因此，我們確保使用該選址工具進行最佳化，以確保我們儘早獲得正確的選址。因此我們將繼續使用該流程。但除此之外，你知道，我們有能力在今年剩餘時間內完成這些其他 20 個站點左右的工作。

Understood. And just one last quick one for me here on OpEx good cost control. There was anything in particular that kind of drove the performance in the third quarter and how much is left to spend at this point of the the one time costs?

明白了。最後我再簡單談談關於 OpEx 良好的成本控制。有什麼特別的因素推動了第三季的業績，目前還剩下多少一次性成本可供支出？

Yeah, this is, this is Mike. So I'd say the largest driver of cost coming in was more of a cost avoidance of not growing in certain non core growth areas that was planned for. So some cost cutting but also just a cost avoidance. And then the one time costs we expect to do $7 million in total for the year and we have about $6 million of that in cash and non cash already done. So about a million left.

是的，這是，這是麥克。因此，我認為導致成本增加的最大因素更多的是避免在某些非核心成長領域實現成長的成本。因此，有些成本削減，但也只是成本避免。然後，我們預計全年的一次性成本總計為 700 萬美元，其中已以現金和非現金支付的金額約為 600 萬美元。所以還剩下大約一百萬。

Perfect. Sounds good. Looking forward to the webinar. Thanks guys.

完美的。聽起來不錯。期待此次網路研討會。謝謝大家。

Thank you.

謝謝。

Your next question comes from Jeffrey Campbell with Seaport research partners. Your line is open.

您的下一個問題來自 Seaport 研究合作夥伴的 Jeffrey Campbell。您的線路已開通。

Thanks and thank you for taking my questions.

謝謝，也謝謝您回答我的問題。

My first one is the white paper question. Your recent white paper noted that the PXG 1,300 trans critical system, energy savings and increased cooling capacity did not require any water cooling. So I was wondering if this suggested that a system using the PXG might be able to avoid an antibiotic cooler and choose a dry cooler instead.

我的第一個問題是關於白皮書的問題。您最近的白皮書指出，PXG 1,300 跨臨界系統的能源節省和冷卻能力的提高不需要任何水冷。所以我想知道這是否意味著使用 PXG 的系統可以避免使用抗生素冷卻器而選擇乾式冷卻器。

Yeah, it's a good, so, hey, this is David. That's a good question. So, so there are a number of sites across what that refers to is there are a number of sites across Europe and even in certain parts of the US, especially southern California that, that require amatic cooling or for high heat load days. And, and so, so what the PXG does is that given its increased cooling capacity, it depending on the start, the location can either okay, can either replace the antibiotic cooler as a best case or, or as a w or worst case can reduce the amount of ad cooling that that goes on during high heat, low days, thus reducing water usage, thus reducing energy savings and so on. And so, so what this means is that if you're putting in a Greenfield site where, where you've got an antibiotic, you would have put an antibiotic cooler before you no longer if you're going to put in the PFC, you no longer require that. You don't have to go through the expense of putting in the, the 20 to the $50,000 of, of putting in the anti about cooler. Nor do you have to, you know, you can for the 5 to $10,000 a year of operating costs as well. So, we're a nice replacement for that Adiabatic cooling system.

是的，很好，嘿，這是大衛。這是個好問題。所以，這裡指的是歐洲各地，甚至美國某些地區，特別是南加州的許多地方，都需要自動冷卻或高熱負荷天氣。因此，PXG 的作用是，鑑於其增強的冷卻能力，根據開始和位置的不同，它可以在最佳情況下取代抗生素冷卻器，或者在最壞情況下減少在高溫、低溫天氣期間的廣告冷卻量，從而減少用水量，從而減少能源節約等等。所以，這意味著如果您在 Greenfield 站點放置抗生素，那麼您之前就會放置抗生素冷卻器，如果您要放置 PFC，那麼您不再需要它。您不必花費 2 萬到 5 萬美元來安裝防冷卻器。您也不必這樣做，您知道，您也可以承擔每年 5 到 10,000 美元的營運成本。因此，我們是絕熱冷卻系統的良好替代品。

Yeah, that, that, that, that stuck out as a pretty good argument for the CG from what we hope.

是的，那，那，那，正如我們所希望的那樣，這對 CG 來說是一個很好的論點。

So, we hope we hope that's the case as others read it, especially end user. So.

因此，我們希望其他人讀到它時也是如此，尤其是最終用戶。所以。

We can get and we can get rid of the expander at the same time. So that's or the ejector, excuse me at the same time. So it's a pretty good argument. I want to ask, I want to ask you one other kind of think a question. The recent epa snap decision in June allows continued use of HFO and HFOHFC blends in new equipment designed for these refrigerants in the US. Just wondering what your, what are your thought or maybe what you're hearing or you know, what are the animal spirits on continuing competition between HFO and CO2 refrigeration, particularly with the X G's ability to strengthen the CO2 case as we just discussed?

我們可以獲得擴展器，同時我們也可以擺脫它。所以那是或彈射器，對不起。所以這是一個非常好的論點。我想問，我想問你另外一個問題。美國環保署在六月做出的最新決定允許在美國為這些冷媒設計的新設備中繼續使用 HFO 和 HFOHFC 混合物。只是想知道您有什麼想法，或者您聽到了什麼，或者您知道，HFO 和 CO2 製冷之間持續競爭的動力是什麼，特別是正如我們剛才討論過的 XG 加強 CO2 案例的能力？

Yeah, I think CO2 is still the outright winner. You might have some outliers that will choose the HFO blends and maybe even even as in standalone cases that you can move around the store freely. But everything that we're hearing in the US from our O ems our OEM customers that we've been working with is that it's full speed ahead on CO2, full speed ahead.

是的，我認為二氧化碳仍然是絕對的贏家。您可能會有一些異常值選擇 HFO 混合物，甚至可能在獨立情況下您可以在商店中自由移動。但是，我們從美國合作的 OEM 客戶那裡聽到的消息是，他們正在全速推進二氧化碳減排。

Okay, great. Thank you. I appreciate that.

好的，太好了。謝謝。我很感激。

You're welcome.

不客氣。

Once again to ask a question at this time, please press star. Then the number one on your telephone keypad.

此時再次提問，請按星號。然後按下電話鍵盤上的數字 1。

Your next question comes from Miriam Martin with BMO capital. Your line is open, MS Martin, your line is open.

您的下一個問題來自 BMO 資本的 Miriam Martin。您的線路已開通，馬丁女士，您的線路已開通。

It appears there are no further questions at this time. I'd like to turn the call back to our presenters for any further remarks.

目前似乎沒有其他問題。我想將電話轉回給我們的主持人，以便進一步發表評論。

All you, I appreciate your time. I'll go ahead.

各位，我很感謝你們抽出時間。我先走了。

This concludes today's energy recovery, third quarter earnings call. Thank you for attending and have a wonderful rest of your day.

今天的能源復甦和第三季財報電話會議到此結束。感謝您的出席並祝您有美好的一天。