Flux Power Holdings Inc (FLUX) 2024 Q1 法說會逐字稿

Greetings and welcome to the Flux Power Holdings first-quarter fiscal year 2024 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 Flux Power Holdings 2024 財年第一季財務業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to hand the call over to Maria Rico, marketing manager. Maria?

我現在想將電話轉給行銷經理 Maria Rico。瑪麗亞？

Your host today, Ron Dutt, Chief Executive Officer; and Chuck Scheiwe, Chief Financial Officer, will present results of operations for the fiscal first quarter ended September 30, 2023. A press release detailing these results crossed the wires this afternoon at 4:01 PM Eastern Time and is available in the Investor Relations section of our company's website fluxpower.com.

今天的主持人是執行長 Ron Dutt；財務長 Chuck Scheiwe 將公佈截至 2023 年 9 月 30 日的第一財季營運表現。詳細介紹這些業績的新聞稿於美國東部時間今天下午 4:01 發布，可在投資者關係部分查看我們公司的網站Fluxpower.com。

Before we begin the formal presentation, I would like to remind everyone that statements made on the call and webcast may include predictions, estimates, or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

在我們開始正式演示之前，我想提醒大家，電話會議和網路廣播中的陳述可能包括預測、估計或其他可能被視為前瞻性的資訊。雖然這些前瞻性陳述代表了我們目前對未來的判斷，但它們受到風險和不確定性的影響，可能導致實際結果出現重大差異。

You are cautioned not to place undue reliance on these forward-looking statements, which reflect our opinions only, as of the date of this presentation. Please keep in mind, we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements, in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our most recent Form 10-K for a more complete discussion of these factors and other risks, particularly under the heading risk factors.

請注意，不要過度依賴這些前瞻性陳述，這些陳述僅反映我們截至本簡報發布之日的觀點。請記住，我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。在今天的討論中，我們將嘗試提出一些與我們的業務相關、可能影響我們的預測的重要因素。您還應該查看我們最新的 10-K 表，以更完整地討論這些因素和其他風險，特別是在風險因素標題下。

At this time, I will turn the call over to Flux Power Chief Executive Officer, Ron Dutt.

此時，我會將電話轉給 Flux Power 執行長 Ron Dutt。

Thank you, Maria, and good afternoon, everyone. I'm pleased to welcome you to today's fiscal first quarter 2024 financial results conference call. Firstly, please note on slide 3, if you're following the deck for those of you new to our story, here's a short reminder of what we do, electrifying commerce.

謝謝瑪麗亞，大家下午好。我很高興歡迎您參加今天的 2024 年第一季財務業績電話會議。首先，請注意幻燈片 3 上的內容，如果您正在關注我們故事中的新手，這裡有一個簡短的提醒，提醒您我們所做的事情：電氣化商業。

We are powering material handling, airport ground support, solar energy storage, port authority equipment, and other applications with new and clean technology. Our products and services are focused on the growing demand from large nationwide fleets that are pursuing a better return on investment in a positive environmental impact compared to lead-acid batteries. We are the leading lithium-ion supplier providing full service to the nationwide large fleets who require the best both now and with future deliveries in product, technology, service, and ease of doing business.

我們利用新型清潔技術為物料搬運、機場地面支援、太陽能儲存、港務局設備和其他應用提供動力。我們的產品和服務專注於滿足全國大型車隊不斷增長的需求，與鉛酸電池相比，這些車隊追求更好的投資回報，對環境產生積極的影響。我們是領先的鋰離子供應商，為全國大型車隊提供全方位服務，這些車隊現在和未來都需要在產品、技術、服務和營商便利性方面提供最好的服務。

Our reputation and brand are critical as we target household names, which I'll point out shortly. We must have a strong reputation and solid track record to reliably satisfy these large fleets that have hundreds of facilities and need their batteries for new equipment or existing equipment delivered on time without difficulty. Fortune 100 companies demand suppliers that are transparent, experienced, and accountable, as they transition their fleets to new and clean technologies, which puts us in a very strong position in the electrification market. And we have a trend of on average, adding two large new customers per quarter and without losing any of our installed base customers.

我們的聲譽和品牌至關重要，因為我們的目標是家喻戶曉的品牌，這一點我很快就會指出。我們必須擁有良好的聲譽和良好的業績記錄，才能可靠地滿足這些擁有數百個設施並需要其電池來支援新設備或現有設備按時交付的大型車隊的需求。財富 100 強公司在將車隊轉向新型清潔技術時需要透明、經驗豐富且負責任的供應商，這使我們在電氣化市場中處於非常有利的地位。我們的趨勢是平均每季增加兩個大型新客戶，並且不會失去任何已安裝的客戶。

Now onto our first-quarter results. Our business priority this past fiscal year focused on progress to cash flow breakeven while continuing to capture increasing demand for lithium-ion batteries. During the first quarter of fiscal 2024 and including this past October, we remained encouraged by the underlying growth during the entire year, past year of our products and also by the momentum toward cash flow breakeven and profitability.

現在來看我們的第一季業績。上一財年我們的業務重點是實現現金流損益平衡，同時繼續滿足鋰離子電池日益增長的需求。在 2024 財年第一季度，包括去年 10 月，我們的產品全年、過去一年的基本增長以及現金流收支平衡和盈利能力的勢頭仍然令我們感到鼓舞。

Revenue for the first quarter of 2024 decreased 17% to $14.8 million compared to $17.8 million in the first fiscal quarter of 2023, due to fewer units of lithium-ion packs sold during the current quarter as a result of ongoing shipment deferrals related to OEM forklift delivery delays, along with some seasonal reduction in orders. We continued to improve gross profit, which increased 9% to $4.3 million compared to a gross profit of $3.9 million in the first fiscal quarter of 2023. Gross margin improvement initiatives contributed to a 700 basis point increase in the first quarter to 29%, up from 22% in the prior year quarter. This very notable increase reflects the operational efficiencies we have been achieving in sourcing, design costs, lean manufacturing, and improved pricing.

與2023 年第一財季的1,780 萬美元相比，2024 年第一季的營收下降了17%，至1,480 萬美元，原因是OEM 堆高機相關的出貨持續延期，導致本季銷售的鋰離子電池組數量減少交貨延遲，以及訂單的季節性減少。我們持續改善毛利，與2023 年第一財季的毛利390 萬美元相比，毛利成長了9%，達到430 萬美元。毛利率改善舉措使第一季毛利成長了700 個基點，達到29%，較上年同期的 22% 成長。這一顯著的成長反映了我們在採購、設計成本、精益製造和改進定價方面所實現的營運效率。

Adjusted EBITDA loss improved to $1.2 million in the fiscal first quarter of 2024, as compared to a loss of $1.5 million in the fiscal first quarter of 2023, driven by the improved gross margins and holding operating expenses in check. For the first quarter, our customer order backlog declined from $28.5 million at June 30 to $21.8 million as of September 30, 2023, reflecting timing delays in receiving purchase orders. As of November 2, though, backlog had increased to $31 million, reflecting continued and expanded ordering from the airport GSE market and some additional pickup in forklift delivery timing. We made progress on a number of our growth initiatives that will have near term and long-term impacts.

受毛利率提高和營運費用控制的推動，2024 年第一季調整後 EBITDA 虧損改善至 120 萬美元，而 2023 年第一季虧損為 150 萬美元。第一季度，我們的客戶訂單積壓從 6 月 30 日的 2,850 萬美元下降到截至 2023 年 9 月 30 日的 2,180 萬美元，反映出接收採購訂單的時間延遲。不過，截至 11 月 2 日，積壓訂單已增加至 3,100 萬美元，反映出機場 GSE 市場訂單的持續擴大以及堆高機交貨時間的一些額外增加。我們在多項成長措施上取得了進展，這些措施將產生短期和長期影響。

Our new series of heavy-duty models will be added to most of our product segments, and along with a new OEM private label program, will both address strong market demand and launch beginning in early 2024 calendar year. And our automated assembly of cell modules is tracking similarly in timing. We plan to launch the industry's first integrated telematics fleet-wide program with a Fortune 100 customer later in 2024 calendar year.

我們的新系列重型型號將添加到我們的大部分產品領域，並與新的 OEM 自有品牌計劃一起滿足強勁的市場需求，並於 2024 年初開始推出。我們的電池模組自動組裝在時間上也有類似的追蹤。我們計劃於 2024 年稍後與財富 100 強客戶推出業界首個整合遠端資訊處理車隊範圍計畫。

We believe that our leadership in telematics will serve as a continuing platform to introduce new features for operating performance and asset management that are highly desired by our customers. Also, we're exploring with partners, opportunities on fast charging technology and internal international sales opportunities. We are highly focused on achieving cash flow breakeven during this fiscal year 2024. Key drivers of the improvement include gross margin expansion and supported by steady operating leverage from slow growth of operating expense over the year.

我們相信，我們在遠距資訊處理領域的領導地位將成為一個持續的平台，推出客戶高度期望的營運績效和資產管理新功能。此外，我們正在與合作夥伴探索快速充電技術的機會和內部國際銷售機會。我們高度重視在 2024 財年實現現金流收支平衡。改善的主要驅動因素包括毛利率擴張以及全年營運費用緩慢成長帶來的穩定營運槓桿的支持。

Our cost and price initiatives mentioned earlier contributed to gross margin improvements to 29% in Q1 '24 compared to 27% in Q4 '23. Also, our inventory balances have been stable, reflecting higher inventory turns from improved operational processes and lean manufacturing implementation. Taken together for those two, we are executing operational efficiencies on our strategy for cash flow breakeven and sustain profitability as we continue to drive expansion of our product lineup and service network. And we estimate our manufacturing capacity in our current facility could support a doubling of our current annual revenue.

我們前面提到的成本和價格措施使 24 年第 1 季的毛利率提高到 29%，而 23 年第 4 季的毛利率為 27%。此外，我們的庫存餘額一直保持穩定，這反映出改善的營運流程和精實製造實施帶來的更高的庫存週轉率。就這兩者而言，隨著我們繼續推動產品陣容和服務網絡的擴張，我們正在執行現金流收支平衡和維持獲利能力策略的營運效率。我們估計我們目前工廠的製造能力可以支持我們目前年收入翻倍。

In the long term, our strategy revolves around building scale to sell our products to large fleets, building on our momentum in revenue, gross margin and operating leverage. Concurrently -- currently, we are growing organically within our capital resources, but have begun to explore and develop strategies, including those already mentioned, to build partnerships that can leverage revenue growth, technology and profitability, and achieve our goal building scale to meet the needs of our top tier customers.

從長遠來看，我們的策略圍繞著擴大規模，向大型車隊銷售我們的產品，建立我們在收入、毛利率和營運槓桿方面的勢頭。同時，目前，我們正在我們的資本資源範圍內有機增長，但已經開始探索和製定策略，包括已經提到的策略，以建立能夠利用收入增長、技術和盈利能力的合作夥伴關係，並實現我們的目標，即建立規模以滿足我們頂級客戶的需求。

Our efforts on increasing revenue and margin improvement, specifically for adjusted EBITDA are reflected on slide 7, showing the upward trend over the past fiscal year and momentum toward breakeven. The decline in Q1 '24 is directly attributed to the quarterly revenue decline tied to seasonality, historically in that quarter, and along with shipment deferrals. We believe our historical trajectory to profitability is continuing, given our installed base of customers and consistent acquisition of new customers. Additional enablers include expansion of high demand models and continued operational and volume related supply chain cost reductions.

我們在增加收入和提高利潤率方面所做的努力，特別是調整後的 EBITDA 方面的努力，反映在幻燈片 7 中，顯示了上一財年的上升趨勢和實現盈虧平衡的勢頭。 24 年第一季的下降直接歸因於與季節性相關的季度收入下降（歷史上該季度是該季度）以及發貨延期。鑑於我們的客戶群和不斷獲得的新客戶，我們相信我們的獲利歷史軌跡正在持續。其他推動因素包括高需求模型的擴展以及持續營運和數量相關的供應鏈成本降低。

Our current and potential pipeline of customers continues to expand with two new customers this past quarter and six new customers total in the calendar year 2023 year-to-date. Our full product line caters to large fleets who seek an ongoing relationship partnership to meet current and future needs, not just one-time transactional purchases. These customers represent well-known household names having large fleets who require high-performing suppliers. While the forklift growth rate as it's historically been single digit, the adoption of lithium-ion reflects a double-digit rate. Goods and materials need to be transported in all economic conditions. And this speaks nothing of opportunities in adjacent product sectors.

我們目前和潛在的客戶管道繼續擴大，上個季度新增了兩家客戶，2023 年迄今總共新增了 6 家新客戶。我們的完整產品線迎合大型車隊的需求，他們尋求持續的合作夥伴關係以滿足當前和未來的需求，而不僅僅是一次性交易性購買。這些客戶代表家喻戶曉的品牌，擁有龐大的車隊，需要高性能的供應商。雖然堆高機的成長率歷來都是個位數，但鋰離子電池的採用卻呈現兩位數的成長率。貨物和材料需要在所有經濟條件下運輸。這並沒有說明鄰近產品領域的機會。

The trajectories of our revenue and gross margin on slide 9, speak for themselves. We have taken actions to restore our gross margin trajectory that was interrupted by the pandemic, with our highest priority now of achieving sustained profitability this fiscal year. Our ongoing improvement initiatives include a number of actions that are now impacting gross margin. They are price increases to offset commodity increases, increased pack volumes, more competitive shipping costs, lower costs, more reliable and secondary suppliers of key components, expanded manufacturing capacity and production processes, and transition of product lines to a new modular platform, which has more efficient design for both assembly and service. All these initiatives are part of our plan to accelerate gross margins as our target is to reach 40% gross margin.

第 9 張投影片上我們的營收和毛利率的軌跡不言而喻。我們已採取行動恢復被疫情中斷的毛利率軌跡，目前我們的首要任務是在本財年實現持續獲利。我們正在進行的改進舉措包括許多目前正在影響毛利率的行動。它們是價格上漲以抵消商品上漲、增加包裝量、更具競爭力的運輸成本、更低的成本、更可靠的關鍵部件二級供應商、擴大製造能力和生產流程以及將產品線過渡到新的模組化平台，這已經更有效率的組裝和服務設計。所有這些舉措都是我們提高毛利率計劃的一部分，因為我們的目標是達到 40% 的毛利率。

Slide 10 highlights our backlog and inventory level trends, which are reflecting a more predictable pattern in recent periods, especially compared to the strong upward revenue trend of our revenue and gross margin mentioned earlier. As of November 2, our backlog increased to $31 million, as I mentioned, with two new customers contributing to this increase. Our run rate of backlog does vary at any point in time, but as a pattern, running, ranging from $20 million to $38 million, depending on timing of orders.

幻燈片 10 突顯了我們的積壓訂單和庫存水準趨勢，這反映了近期更可預測的模式，特別是與前面提到的我們的收入和毛利率強勁上升的收入趨勢相比。正如我所提到的，截至 11 月 2 日，我們的積壓訂單增加至 3,100 萬美元，其中兩位新客戶促成了這一增長。我們的積壓運行率在任何時間點都會有所不同，但作為一種模式，運行率從 2000 萬美元到 3800 萬美元不等，具體取決於訂單時間。

Beyond our backlog of open orders, we are working on a pipeline of high probability orders of well over $100 million, which does stretch beyond the current fiscal year ending June 30. We monitor the multi-billion addressable market -- material handling market for economic trends, new entrants, and customer demand trends. And we believe this market to provide a very positive growth environment with a strong stable undercurrent, especially given the recognized double-digit growth of lithium-ion solutions in that sector. Our strategic initiatives also include sourcing actions to mitigate part shortages, accelerating backlog conversion to shipments, and increasing inventory returns.

除了積壓的未結訂單之外，我們正在處理遠超過1 億美元的高機率訂單管道，這確實超出了截至6 月30 日的當前財年。我們監控數十億的潛在市場——經濟的物料搬運市場。趨勢、新進入者和客戶需求趨勢。我們相信這個市場將提供一個非常積極的成長環境和強大且穩定的暗流，特別是考慮到該領域鋰離子解決方案公認的兩位數成長。我們的策略性舉措還包括緩解零件短缺的採購行動、加速積壓訂單轉化為出貨以及增加庫存退貨。

With that, I will turn it over to Chuck Scheiwe, our Chief Financial Officer, to review the financial results for the quarter ended September 30, 2023. Chuck?

接下來，我將把它交給我們的財務長 Chuck Scheiwe，以審查截至 2023 年 9 月 30 日的季度的財務業績。Chuck？

Thanks, Ron. Now, turning to review our financial results in the quarter ended September 30, 2023.

謝謝，羅恩。現在，回顧一下我們截至 2023 年 9 月 30 日的季度的財務表現。

As Ron mentioned, revenue for the fiscal first quarter of 2024 decreased by 17% to $14.8 million compared to $17.8 million in the fiscal first quarter of 2024. This is due to fewer units of storage packs sold during the current quarter, and this was the result of ongoing deferrals related to OEM forklift timing delays and some seasonal reduction with certain customers.

正如Ron 所提到的，與2024 年第一財季的1,780 萬美元相比，2024 年第一財季的收入下降了17%，至1,480 萬美元。這是由於本季銷售的儲存包單位較少，這是由於這是由於 OEM 堆高機時間延遲以及某些客戶的季節性減少而導致的持續延期。

Gross profit for fiscal Q1 of 2024 increased to $4.3 million compared to a gross profit of $3.9 million in fiscal Q1 of 2023. Gross margin was 29% in fiscal Q1 of 2024, as compared to 22% in fiscal Q1 of 2023. This is reflecting greater gross profit and lower cost of sales as a result of the gross margin improvement initiatives that will help us achieve profitability. This was also partially offset by lower number of units sold.

2024 年第一財季的毛利增加至430 萬美元，而2023 年第一財季的毛利為390 萬美元。2024 年第一財季的毛利率為29%，而2023 年第一財季的毛利率為22%。這反映了毛利率改善措施將有助於我們實現盈利，從而提高毛利並降低銷售成本。這也被銷量減少所部分抵銷。

Selling and administrative expenses were at $4.7 million in fiscal Q1 of 2024, up slightly from $4.5 million in the previous year quarter. And this is showing the contributions to operating leverage we see. Research and development expenses increased slightly to $1.3 million in fiscal Q1 of 2024 compared to $1.2 million in fiscal Q1 of 2023, and this was primarily due to staff-related expenses.

2024 年第一財季的銷售和管理費用為 470 萬美元，略高於去年同期的 450 萬美元。這顯示了我們看到的對營運槓桿的貢獻。 2024 年第一財季的研發費用小幅增加至 130 萬美元，而 2023 年第一財季的研發費用為 120 萬美元，主要是因為員工相關費用。

Adjusted EBITDA loss improved to $1.2 million in fiscal Q1 of 2024 from $1.5 million in fiscal Q1 of 2023. And as we talked, this was mostly driven by the improved gross margins we're seeing. Our continued initiatives, business growth, and operating leverage all contribute to drive this trajectory. Net loss for fiscal Q1 of 2024 was $2.1 million, very similar to a net loss of $2.1 million in the fiscal Q1 of 2023. The nominal improvement was principally reflected increased gross profit, offset by increased operating expenses and interest expense.

調整後的 EBITDA 損失從 2023 年第一季的 150 萬美元增至 2024 年第一季的 120 萬美元。正如我們所說，這主要是由於我們看到的毛利率改善所致。我們持續的舉措、業務成長和營運槓桿都有助於推動這一發展軌跡。 2024 年第一財季的淨虧損為210 萬美元，與2023 年第一財季的淨虧損210 萬美元非常相似。名義上的改善主要反映了毛利潤的增加，但被營運費用和利息費用的增加所抵消。

Cash on the balance sheet was $1.1 million at September 30, 2023, as compared to $2.4 million at June 30, 2023. Please note that the cash balance will vary depending on timing of payables, receivables, and our borrowing on the working capital line. Net cash used in operating activities increased to $3.1 million for the three months ended September 30, 2023, compared to $600,000 for the three months ended September 30, 2022. And this is primarily due to growing the business, the timing of receivables, and other working capital timing.

截至2023 年9 月30 日，資產負債表上的現金為110 萬美元，而2023 年6 月30 日為240 萬美元。請注意，現金餘額將根據應付帳款、應收帳款以及我們在營運資金額度上的借款的時間而有所不同。截至2023 年9 月30 日止三個月，經營活動使用的現金淨額增至310 萬美元，而截至2022 年9 月30 日止三個月為60 萬美元。這主要是由於業務增長、應收帳款的及時性和其他原因。營運資金的時間安排。

We recently announced a new $15 million credit facility from Gibraltar Business Capital. This is to fund working capital and to refinance our existing credit facility with Silicon Valley Bank. This facility is intended to help meet our anticipated working capital needs to fund planned operations to meet the demands of our growth trajectory for the foreseeable future. The facility is structured to expand to $20 million if needed for additional growth.

我們最近宣布從 Gibraltar Business Capital 獲得一項新的 1500 萬美元信貸額度。這是為了提供營運資金並為我們與矽谷銀行現有的信貸安排進行再融資。該設施旨在幫助滿足我們預期的營運資金需求，為計劃運營提供資金，以滿足我們在可預見的未來成長軌蹟的需求。如果需要進一步成長，該設施的結構可擴大至 2000 萬美元。

Our available funds include our line of credit as of November 2, 2023, under the $15 million credit facility from Gibraltar Business Capital as a remaining available balance of $2.9 million, and that has the additional $5 million if needed under the expandable provision. We also have the $2 million available under the new subordinated line of credit.

我們可用的資金包括截至2023 年11 月2 日的信貸額度，根據直布羅陀商業資本提供的1500 萬美元信貸額度，剩餘可用餘額為290 萬美元，如果需要，根據可擴展條款還有額外的500 萬美元。我們還可以根據新的次級信貸額度獲得 200 萬美元。

Now I'd like to pass it back to Ron to offer some closing remarks.

現在我想將它轉回羅恩以提供一些結束語。

Thanks, Chuck. Looking at the positive momentum of our existing customer base and new customer acquisitions. We're confident that we are on a strong trajectory toward reaching sustainable profitability during this current fiscal year. Our steady ongoing gross margin improvement reflects our goal to reach 40% gross margin, leveraging our costs, operational, and pricing initiatives.

謝謝，查克。看看我們現有客戶群和新客戶獲取的正面動力。我們相信，在本財年，我們將朝著實現可持續獲利的強勁軌道前進。我們持續穩定的毛利率改善反映了我們利用成本、營運和定價措施達到 40% 毛利率的目標。

Our long-term plans include a focus on the strong demand of the market for sustainable energy, especially in our industrial sector, where there's no reliance on incentives, but only on ROI. We believe the combination of existing customer orders and the acquisition of new customers who want the benefits of lithium-ion technology can drive continued revenue growth.

我們的長期計劃包括關注市場對永續能源的強勁需求，特別是在我們的工業領域，不依賴激勵措施，而只依賴投資回報率。我們相信，現有客戶訂單和收購想要受益於鋰離子技術的新客戶的結合可以推動收入的持續成長。

We are seeing strong progress with our growth strategy, including the introduction of new heavy-duty models to be launched in 2024, a new private label program to be launched with a major forklift OEM, and a potential partnership on fast charging proprietary technology, along with the automation of battery cells into modules. Partnering with a Fortune 100 company on the industry's first telematics integration for an entire fleet. And lastly, developing partnerships for international sales channels.

我們看到我們的成長策略取得了巨大進展，包括推出將於2024 年推出的新重型車型、與主要堆高機OEM 推出的新自有品牌計劃，以及在快速充電專有技術方面的潛在合作夥伴關係，以及隨著電池單元自動化轉換為模組。與財富 100 強公司合作，為整個車隊提供業界首個遠端資訊處理整合。最後，發展國際銷售通路的合作關係。

And our current production facility should support annual revenues up to $150 million given our facility footprint, second ship buildout, and full lean manufacturing implementation. As I mentioned previously, we announced recently an improved capital structure that includes a working capital line of credit of $15 million with Gibraltar Business Capital to support current and planned growth with provisions to increase to $20 million. And a new $2 million subordinated credit facility with Cleveland Capital with an extended maturity to August 15, 2025.

考慮到我們的設施佔地面積、第二艘船的擴建和全面精益製造的實施，我們目前的生產設施應能支援高達 1.5 億美元的年收入。正如我之前提到的，我們最近宣布了一項改進的資本結構，其中包括向直布羅陀商業資本提供1500 萬美元的營運資金信貸額度，以支持當前和計劃的增長，並將撥備增加到2000 萬美元。與克利夫蘭資本 (Cleveland Capital) 簽訂了一項新的 200 萬美元次級信貸安排，期限延長至 2025 年 8 月 15 日。

In summary, we are well positioned to execute our strategy of electrifying commerce as we offer customers deep experience as first movers in this sector and validation by Fortune 100 customers to entrust their migration to lithium solutions to us. I look forward to providing our shareholders with further updates in the near future as we strengthen our leadership position in lithium-ion technology solutions with our growing list of new and diverse large customers. I thank all of you for attending.

總而言之，我們有能力執行我們的電氣化商業策略，因為我們為客戶提供作為該領域先行者的豐富經驗，並得到財富 100 強客戶的驗證，將他們的鋰解決方案遷移到我們這裡。我期待在不久的將來向我們的股東提供進一步的最新消息，因為我們透過不斷增加的新的和多樣化的大客戶名單來加強我們在鋰離子技術解決方案方面的領導地位。我感謝大家的出席。

And now I'd like to hand the call over to the operator to begin our question-and-answer session. Operator?

現在我想將電話轉交給接線員以開始我們的問答環節。操作員？

(Operator Instructions) Rob Brown, Lake Street Capital Markets.

（操作員說明）Rob Brown，Lake Street Capital Markets。

Good afternoon.

午安.

Hi Rob.

嗨羅布。

Hey Rob.

嘿，羅布。

I just want to talk a little bit about the orders. Sound like the run rate picked up after quarter end. How is that kind of looking going into the next quarter here? And what's sort of the dynamics in the market at this point?

我只想談談訂單。聽起來季度末運行率有回升。下一季的情況如何？目前市場動態如何？

The shorter answer is it looks good. You could see some of the lumpiness. I mean, in Q1 and most quarter -- except for last year. It was always a slow season due to some of our bigger customers who are busy in the summer with their operations and not ordering or installing new equipment or thinking about new orders. So we do experience that.

簡短的回答是它看起來不錯。你可以看到一些塊狀的東西。我的意思是，在第一季和大多數季度——除了去年。由於我們的一些大客戶在夏季忙於運營，沒有訂購或安裝新設備或考慮新訂單，因此這始終是一個淡季。所以我們確實經歷過這一點。

We're seeing discontinued underlying demand in the market. There are two model lines that have some extended -- forklifts that have extended timing that has caused some of these delays for us, for our competitors, and for the OEMs, frankly. But we see that's more than offset by the growing demand that we have. And then the near-term initiatives we have in terms of new product lines that we couldn't offer before are going to start impacting this in the spring as we proceed them.

我們看到市場上的潛在需求已經停止。坦白說，有兩個型號系列的堆高機的時間有所延長，這給我們、我們的競爭對手以及原始設備製造商造成了一些延誤。但我們發現，這完全被我們不斷增長的需求所抵消。然後，我們在新產品線方面採取的近期舉措是我們以前無法提供的，將在春季我們繼續實施這些舉措時開始對此產生影響。

Great, thank you. And then, could you compare the new private label program? How's that working and how's it incremental for what you've been doing?

太好了謝謝。然後，您能比較一下新的自有品牌計劃嗎？效果如何？對於您一直在做的事情來說，它是如何增量的？

Yeah, sure. We've had one private label program in place for a number of years, the top five OEM. And it's proven to be very successful. It's in that Class 3 space. Those forklifts are the smaller forklifts, a lower price for that Class 3 space.

好，當然。我們多年來一直實施一項自有品牌計劃，即排名前五的 OEM。事實證明這是非常成功的。就在那個三級空間。這些堆高機是較小的堆高機，對於 3 級空間來說價格較低。

The equipment, which is called Walkie Pallet Jack. But they're the most numerous by unit volume of any of the product lines, number one. So they're lower priced, but there's a lot of them. Number two, these large Fortune 500 fleets we go after that have tens and hundreds of offices across the country, most of them use these. And these large fleets like to buy packs from a variety of product line models.

該設備稱為 Walkie Pallet Jack。但以單位體積計算，它們是所有產品線中數量最多的，排名第一。所以它們的價格較低，但數量很多。第二，我們追尋的這些大型財富 500 強車隊在全國各地擁有數十個和數百個辦事處，其中大多數都使用這些辦事處。而這些大型車隊喜歡購買各種產品線型號的包包。

So the private label one is one for that smaller class. It's viewed a little differently than the large forklifts. And we're seeing that a private label where the OEM is out there selling and distributing it through their equipment dealerships across the country is an effective way to go to market with that particularly, with that particular line. With car dealers, they'll sell small cars, but the customers come in and buy the SUVs and large cars as well. There's a little bit of that going on as well. So it's a way to efficiently cover the market, help us build scale.

因此，自有品牌是針對較小類別的產品。它的外觀與大型堆高機略有不同。我們發現，原始設備製造商透過其在全國各地的設備經銷商銷售和分銷自有品牌，是進入市場的有效方式，特別是針對該特定產品線。對於汽車經銷商來說，他們會銷售小型汽車，但顧客也會進來購買 SUV 和大型汽車。也有一些這樣的事情正在發生。所以這是一種有效涵蓋市場、幫助我們擴大規模的方法。

Yeah, Robin, I'll add to Ron's comment that, that product in the white label we currently have, that's been there for quite a while, it's very predictable in terms of month-by-month ordering, which is really nice for us. And it's something we -- one of the areas we can latch onto is very consistent ordering quarter to quarter, which is great.

是的，羅賓，我要補充一下羅恩的評論，我們目前擁有的白標產品已經存在相當長一段時間了，就逐月訂購而言，它是非常可預測的，這對我們來說非常好。我們可以抓住的一個領域是季度與季度非常一致的訂購，這很棒。

Great. Thanks for the color. I'll turn it over.

偉大的。謝謝你的顏色。我會把它翻過來。

Thanks, Rob.

謝謝，羅布。

Matthew Galinko, Maxim Group.

馬修·加林科，Maxim 集團。

Hey, thanks for taking my questions. Ron, I think you might have mentioned two new customers in the quarter. Did I understand that correctly?

嘿，謝謝你回答我的問題。羅恩，我想您可能提到了本季的兩位新客戶。我理解正確嗎？

Yes. yes, you did. We've got actually a few more than that. We try to -- when we talk about this, our target market are very large customers that have many locations across the country. And the other -- there's a couple of elements to this.

是的。是的，你做到了。實際上我們還有更多。當我們談論這個問題時，我們試圖做到這一點，我們的目標市場是在全國各地擁有許多分支機構的非常大的客戶。另一個——這有幾個要素。

Even the larger customers will start out with one or two locations, and then feed their other locations to the to the point that we now have a couple of our largest customers, which are household names, at the point where they're comfortable to completely migrate their entire fleet to lithium. So we're always glad to bring on new customers.

即使是較大的客戶也會從一兩個地點開始，然後向其他地點提供服務，直到我們現在擁有幾個最大的客戶，這些客戶都是家喻戶曉的名字，他們完全可以放心地將他們的整個艦隊遷移到鋰。因此，我們總是很高興引進新客戶。

Our customers typically resist of us and anybody else in the industry mentioning their names. But if you look at our we track -- Chuck's got a list in front of me of what we've done this past year and into this quarter. And there's quite a few names, more than the two per quarter. But we do that to really message this impact that they have. And they come from all different parts of the country as well, and different sectors. So does that help you, Matt?

我們的客戶通常會拒絕我們和業內其他任何人提及他們的名字。但如果你看看我們的追蹤——查克在我面前列出了我們去年和本季所做工作的清單。而且名字還不少，比每季兩個還要多。但我們這樣做是為了真正傳達他們所產生的影響。他們也來自全國各地、不同行業。那麼這對你有幫助嗎，馬特？

It does. That's terrific. I guess my follow-up is on the fast-charging partnership that you referenced. Is that coming from demand from existing customers or is that something that could be -- just talk about what the incentive is there to move in that direction?

確實如此。真了不起。我想我的後續行動是關於您提到的快速充電夥伴關係。這是來自現有客戶的需求，還是可能的——只是談談朝著這個方向前進的動力是什麼？

Yeah, sure. I think all of us when we think of fast charging we think of -- you think of your Tesla's and other electric cars, and you want them to charge fast. It's the holy grail in the automotive sector.

好，當然。我認為當我們想到快速充電時，我們所有人都會想到 - 你會想到你的特斯拉和其他電動車，並且你希望它們快速充電。這是汽車業的聖杯。

It's not so much the holy grail in the industrial sector, aside from the Amazon and Walmart and a few plants that are these massive plants. And they actually use fuel cell, because fuel cell charges in five minutes and they run three shifts, hot swap drivers, and don't have an hour or two or more to charge.

除了亞馬遜和沃爾瑪以及一些大型工廠之外，它並不是工業領域的聖杯。他們實際上使用燃料電池，因為燃料電池在五分鐘內充電，而且他們實行三班倒，熱插拔司機，並且沒有一兩個小時或更長時間來充電。

But the rest of the industry isn't necessarily keen on that. Except that fast charging does have its place. It represents operational efficiency. It does have a distinct advantage in any very cold weather situation, given the nature of its thermal management. The fast charging also is a way to provide the kilowatts of energy, given that if you can charge a lot during the breaks and the lunch, you can get by with a pack for the whole day with less lithium in it.

但業內其他公司不一定熱衷於此。但快速充電確實有其一席之地。它代表著營運效率。考慮到其熱管理的性質，它在任何非常寒冷的天氣情況下確實具有明顯的優勢。快速充電也是提供千瓦能量的一種方式，因為如果你可以在休息和午餐期間充電很多，那麼你可以帶著一包電池度過一整天，但裡面的鋰含量較少。

So there's some advantages we're looking at. There are many technology innovations in the market. As you know you can't pick up any literature without reading solid state sodium and so on and so forth. I would say just to reiterate, one of our points, we're agnostic with that. We apply the latest technology. We're exploring this one, it's a proprietary technology. And I think if there's some applications there that could make sense from a business case, we will jump on it.

所以我們正在尋找一些優勢。市場上有許多技術創新。如您所知，如果不閱讀固態鈉等內容，您就無法取得任何文獻。我只想重申一下，我們的觀點之一，我們對此持不可知論。我們應用最新技術。我們正在探索這個，這是一項專有技術。我認為，如果有一些應用程式可以從商業案例中獲得意義，我們就會立即採用。

We continually look at ways to provide leading technology to our large customers because they demand it. When they choose a supplier, they want to know you have as good or better technology than anybody else and for the future. Otherwise, they don't -- you lose confidence in a long-term relationship. So that element of our business is very important from that context. But we'll keep you apprised on this as it develops as well, Matt.

我們不斷尋找向我們的大客戶提供領先技術的方法，因為他們需要這種技術。當他們選擇供應商時，他們想知道您擁有與其他人一樣好的或更好的技術以及面向未來的技術。否則，他們不會──你就會對長期關係失去信心。因此，從這種背景來看，我們業務的這一要素非常重要。但我們也會隨時向您通報此事的進展，馬特。

Great, thank you.

太好了謝謝。

(Operator Instructions) Jeff Grampp, Alliance Global Partners.

（操作員說明）Jeff Grampp，Alliance Global Partners。

Yeah, good afternoon, guys. The PR mentioned some high confidence orders totaling, I think it was over $100 million. Obviously, well in excess of any backlog that you guys have had. Are you guys seeing a change in terms of buyer behavior whereby they maybe feel the pressure to place larger orders ahead of time?

是的，下午好，夥計們。公關提到了一些高可信度訂單，總計超過 1 億美元。顯然，遠遠超過了你們所積壓的訂單。你們是否看到買家行為發生變化，他們可能感受到提前下更大訂單的壓力？

Or is this just kind of more of an indication you guys want to give to the market that these are kind of recurring orders that kind of present themselves in the backlog on a periodic basis? Just trying to, I guess, understand how we should interpret that figure a little bit more clearly.

或者這只是你們想向市場表明這些訂單是定期出現在積壓訂單中的一種重複訂單？我想，只是想了解我們應該如何更清楚地解釋這個數字。

Yeah. There had been some of that, particularly related to the supply chain shortage of -- some of our big customers gave us letters of intent. I think if you recall, we've mentioned that before. This is different. It's related to that. It goes to what I just said a minute ago. Actually, it was nice setup, Jeff, for this question.

是的。其中有一些，特別是與供應鏈短缺有關——我們的一些大客戶給了我們意向書。我想如果你還記得的話，我們之前已經提到過這一點。這是不同的。與此有關。這就是我一分鐘前所說的。事實上，傑夫，這個問題的設定很好。

We've got some of our largest customers, our Fortune 50 type customers, 50 and 100, who are getting comfortable enough with the whole lithium experience because it's just not, hey well the battery -- well the battery drives the equipment in my operation. It's the entire end to end ordering them, delivering, are you training our people? Is there service? What happens at the end of life? What happens all along the way? Can you -- are you reliable? Are you going to be around? What's the delivery experience and can it -- is there ease of business doing with you?

我們有一些最大的客戶，我們的財富 50 強客戶，50 名和 100 名，他們對整個鋰體驗感到足夠滿意，因為它不是，嘿，電池 - 電池驅動我操作中的設備。這是整個端到端的訂購、交付，你在培訓我們的員工嗎？有服務嗎？生命結束時會發生什麼事？一路上會發生什麼事？你能——你可靠嗎？你會在附近嗎？送貨體驗如何？與您開展業務是否方便？

I mean, these companies run very complex operations. And what we're seeing now, this $100 million is referring to one of our largest customers who are looking to convert their entire fleet in a shorter amount of time. These companies have 30,000, 40,000 forklifts across the North America. And they implement, they buy new forklifts overtime. They don't do it all at once, it would be too disruptive to the operation. So it's over a period of a number of months to do this kind of thing.

我的意思是，這些公司的運作非常複雜。我們現在看到，這 1 億美元是指我們最大的客戶之一，他們希望在更短的時間內改造整個機隊。這些公司在北美擁有 30,000 輛、40,000 輛堆高機。他們實施，加班購買新堆高機。他們不會一次完成所有工作，這會對操作造成太大干擾。所以做這種事情需要幾個月的時間。

So this $100 million really reflects that beginning in the March quarter, we believe we will start to see that. It's still a little premature. I'm not going to give out numbers, but they're very intent on it. The timing of the scale of that, as you could imagine, requires a good deal of settling down on their scheduling and plans. But we're delighted, we're delighted to hear this kind of thing. And it's been part of our vision, and we see it with this one big customer, and we see that -- we see this as the kind of thing that can happen with many more customers.

因此，這 1 億美元確實反映了從三月季度開始的情況，我們相信我們將開始看到這一點。現在還為時過早。我不會透露具體數字，但他們對此非常感興趣。正如您可以想像的那樣，其規模的時間安排需要大量確定他們的日程安排和計劃。但我們很高興，我們很高興聽到這樣的事情。這是我們願景的一部分，我們在這個大客戶身上看到了這一點，我們看到了——我們認為這可能發生在更多客戶身上。

Great. That's really exciting. Thank you for that. And my other question is on this telematics integration with the Fortune 100. I know you guys in the past have talked about some different kind of recurring revenue opportunities as it relates to BMS and Telematics and things of that nature. Is that kind of progressing towards that type of opportunity with this specific application or is this just more of a kind of value add to engender better, repeat business and things of that nature?

偉大的。這真的很令人興奮。謝謝你。我的另一個問題是關於與財富 100 強的遠端資訊處理整合。我知道你們過去曾討論過一些不同類型的經常性收入機會，因為它與 BMS 和遠端資訊處理以及類似性質的事物有關。這種特定應用程式是否會朝著那種類型的機會取得進展，或者這只是一種增值，以產生更好的重複業務和類似性質的事物？

Well, it's really everything you mentioned. I'd say the big driver on -- we introduced telematics in this material handling sector, I don't know, three or four years ago. And the sector was used to telematics for their equipment, and it was all around planned maintenance.

嗯，這確實是你提到的一切。我想說的是，三、四年前，我不知道，我們在這個物料搬運領域引入了遠端資訊處理。該部門的設備已經習慣了遠端資訊處理，而且都是圍繞著計劃維護進行的。

And so we've had to go up the curve of these customers getting familiar with it. Are they really going to use that? There's lot of things been sold to these people in forklifts that they don't ever use, include some of that telematics on equipment. And they had to see the real impactful value of this.

因此，我們必須讓這些客戶逐漸熟悉它。他們真的要使用它嗎？有很多東西是用堆高機賣給這些人的，但他們從來沒有使用過，包括一些設備上的遠端資訊處理。他們必須看到這一點的真正有影響力的價值。

So our sales of telematics have been slow -- I would say, slowly building. But we're seeing that accelerate now. And we have one of our largest customers here that finally gotten to the point that we believe is resonating, but they want to put it on all their packs. There's always some reason to know the health of it, is there a problem coming. If you can tell a problem's coming, either we monitoring it or the customer monitoring it, they can go in and address a service issue before a pack goes down.

因此，我們的遠端資訊處理銷售一直很緩慢——我想說，正在慢慢建立。但我們現在看到這種情況正在加速。我們這裡最大的客戶之一最終達到了我們認為引起共鳴的地步，但他們想把它放在他們所有的包裝上。總有一些理由可以了解它的健康狀況，是否有問題。如果您可以判斷即將出現問題，無論是我們進行監控還是客戶進行監控，他們都可以在包裝出現故障之前介入並解決服務問題。

Remember the biggest single sensitive point in this world is downtime of equipment. So this telematics is really providing the intelligence to address those issues. It's really the fundamental tool to improve asset management, to provide product support. And we see the opportunity to integrate real artificial intelligence in this because we have the sensors, we have the data to direct a very timely response to issues with their equipment.

請記住，這個世界上最大的單一敏感點是設備停機。因此，這種遠端資訊處理確實提供了解決這些問題的情報。它確實是改善資產管理、提供產品支援的基本工具。我們看到了將真正的人工智慧融入其中的機會，因為我們擁有感測器，我們擁有數據來指導對他們的設備問題做出非常及時的回應。

So this one customer we're talking about is finally all over this. They're believers and we're excited about it. Again, this is a similar comment to before. We're now seeing the kind of traction that was always part of our vision.

所以我們正在談論的這位客戶終於結束了這一切。他們是信徒，我們對此感到興奮。同樣，這與先前的評論類似。我們現在看到了我們願景中一直存在的那種吸引力。

Jeff, just to add to that, as you were kind of leading to -- everything we're doing with telemetry right now to new customers does include a monthly service fee of some sort. That's how we're approaching it as well. So just so you're aware of that. That's definitely on all new offerings.

傑夫，補充一點，正如您所引導的那樣，我們現在為新客戶所做的遙測工作確實包括某種每月服務費。我們也是這樣做的。所以只是讓你意識到這一點。這絕對是所有新產品的特色。

Great. Understood. All right. Thank you, guys, for the details and the time.

偉大的。明白了。好的。謝謝你們提供的詳細資訊和時間。

Yeah.

是的。

Yeah.

是的。

Thank you. I would now like to turn the call back over to Mr. Dutt for his closing remarks. Thank you.

謝謝。現在我想將電話轉回給杜特先生，請他作結束語。謝謝。

Thank you, operator. I would like to thank each of you for joining our financial results conference call today and look forward to continuing to update you on our ongoing progress and growth. If we're unable to answer any of your questions, please reach out to our IR firm, MZ Group, who will be more than happy to assist you. This concludes our call. Thank you.

謝謝你，接線生。我要感謝你們今天參加我們的財務業績電話會議，並期待繼續向你們通報我們持續取得的進展和成長的最新情況。如果我們無法回答您的任何問題，請聯絡我們的投資者關係公司 MZ Group，他們將非常樂意為您提供協助。我們的通話到此結束。謝謝。

Thank you. You may now disconnect your lines at this time. Thank you for your participation.

謝謝。此時您可以斷開線路。感謝您的參與。