Graham Corp (GHM) 2023 Q3 法說會逐字稿

Greetings, welcome to Graham Corporation Third Quarter Fiscal Year 2023 Financial Results Conference Call. (Operator Instructions). I will now turn the conference over to Debbie Pawlowski, Investor Relations. Thank you. You may begin.

您好，歡迎來到 Graham Corporation 2023 財年第三季度財務業績電話會議。 （操作員說明）。我現在將會議轉交給投資者關係部的 Debbie Pawlowski。謝謝。你可以開始了。

Thank you, Sherry, and good morning, everyone. We certainly appreciate your time today and your interest in Graham Corporation. Here with me on the call are Dan Thoren, our President and CEO; and Chris Thome, our Chief Financial Officer. You should have a copy of the third quarter fiscal '23 financial results, which we released earlier this morning. And if not, you can access the release as well as the slides that will accompany our conversation today on our website at ir.grahamcorp.com.

謝謝你，雪莉，大家早上好。我們非常感謝您今天的時間以及您對 Graham Corporation 的關注。和我一起接聽電話的是我們的總裁兼首席執行官 Dan Thoren；和我們的首席財務官 Chris Thome。您應該有一份我們今天上午早些時候發布的 23 財年第三季度財務業績的副本。如果沒有，您可以在我們的網站 ir.grahamcorp.com 上訪問我們今天談話的新聞稿和幻燈片。

Dan and Chris will provide their formal remarks, after which we will open the line for questions. If you would turn to Slide 2 in the deck, I'll review the safe harbour statement. You should be aware that we may make some forward-looking statements during the formal discussion as well as during the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from what is stated here today. These risks and uncertainties and other factors are provided in the earnings release as well as with other documents filed by the company with Securities and Exchange Commission.

Dan 和 Chris 將提供他們的正式評論，之後我們將打開提問熱線。如果你想翻到幻燈片中的幻燈片 2，我會查看安全港聲明。您應該知道，我們可能會在正式討論和問答環節中做出一些前瞻性陳述。這些陳述適用於受風險和不確定性以及可能導致實際結果與今天此處陳述的內容大不相同的其他因素影響的未來事件。這些風險和不確定性以及其他因素在收益發布以及公司向美國證券交易委員會提交的其他文件中提供。

You can find those documents on our website or at sec.gov. During today's call, we will also discuss some non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of additional information in isolation or the substitute for results prepared in accordance with GAAP. We have provided reconciliation of non-GAAP measures with comparable GAAP measures in the tables that accompany today's release and slides. So with that, if you would please advance to Slide 3, I'll turn the call over to Dan to begin. Dan?

您可以在我們的網站或 sec.gov 上找到這些文件。在今天的電話會議中，我們還將討論一些非 GAAP 財務措施。我們相信這些將有助於評估我們的表現。但是，您不應孤立地考慮提供額外信息或替代根據 GAAP 編制的結果。我們在今天發布的表格和幻燈片中提供了非 GAAP 措施與可比較的 GAAP 措施的對賬。因此，如果您願意轉到幻燈片 3，我會將電話轉給 Dan 開始。擔？

Thank you, Debbie, and good morning, everyone. Before I get started, I'd like to congratulate the Barber-Nichols team for making Glassdoor's best small and medium places to work list for 2023. They notably ranked 10 out of the top 50 companies named. Our team and the culture at Barber-Nichols have created a cohesive and innovative environment that people enjoy, which is validated by ranking such as this. Throughout Graham Corporation, as we advance our strategy, I believe it's important for our businesses that we keep our workforce highly engaged, that we provide a work environment in which all feel welcome, and we strive to create opportunities for each to achieve the best of their abilities. I believe we accomplished this by providing our teams with the resources, inclusive culture and professional development they need to be their best at addressing our customers' requirements.

謝謝你，黛比，大家早上好。在開始之前，我要祝賀 Barber-Nichols 團隊入選 Glassdoor 2023 年最佳中小型工作場所名單。他們在前 50 家公司中排名第 10 位。我們的團隊和 Barber-Nichols 的文化創造了一個人們喜歡的有凝聚力和創新的環境，這一點通過這樣的排名得到了驗證。在整個格雷厄姆公司，隨著我們推進我們的戰略，我認為對我們的企業來說很重要的是，我們保持員工的高度敬業度，我們提供一個讓所有人都感到受歡迎的工作環境，我們努力為每個人創造機會以實現最佳他們的能力。我相信我們通過為我們的團隊提供資源、包容性文化和專業發展來實現這一目標，使他們能夠最好地滿足客戶的需求。

Now on to our results for the quarter. Our third quarter results reflect improved execution and demonstrate continued steady progress as we increase our sales and improve our profitability. Chris will walk you through much of the details, but let me touch on some important highlights. We delivered $40 million in revenue, achieved $0.03 per diluted share in earnings and $0.08 in adjusted earnings per share, and we ended the quarter with $294 million in backlog. Driving this was strong gross profit, improved gross margins and continued cost discipline. In fact, we generated $2.2 million in adjusted EBITDA this quarter. Our solid results enabled us to raise our fiscal 2023 revenue guidance to be in the range of $145 million to $155 million and tighten our adjusted EBITDA range to be between $7.5 million and $8.5 million for the year. We believe the quarter is a proof point along our path to reach our strategic long-term goals of $200 million in revenue and 10% to 15% adjusted EBITDA margin by fiscal 2027.

現在談談我們本季度的業績。我們第三季度的業績反映了執行力的提高，並表明隨著我們增加銷售額和提高盈利能力，我們將繼續穩步取得進展。克里斯將向您介紹大部分細節，但讓我談談一些重要的亮點。我們實現了 4000 萬美元的收入，實現了 0.03 美元的攤薄每股收益和 0.08 美元的調整後每股收益，本季度末我們的積壓訂單為 2.94 億美元。推動這一增長的是強勁的毛利潤、提高的毛利率和持續的成本控制。事實上，本季度我們產生了 220 萬美元的調整後 EBITDA。穩健的業績使我們能夠將 2023 財年的收入指引提高到 1.45 億美元至 1.55 億美元，並將調整後的 EBITDA 範圍收緊至 750 萬至 850 萬美元。我們相信，本季度是我們實現 2 億美元收入和到 2027 財年調整後 EBITDA 利潤率 10% 至 15% 的戰略長期目標的一個證明點。

Our successes with the U.S. Navy have resulted in a very robust backlog of defence business, and we are continuing to strengthen our position in commercial aftermarket, while increasing our presence in the growing space industry. In fact, I will dive a little deeper into the backlog and long-term visibility and growth potential of Navy projects later this call. While orders in the quarter of $20 million were soft, we believe it was primarily due to timing and a reflection of the general ebb and flow of large projects being released. Our trailing 12-month orders of approximately $176 million and 114% book-to-bill ratio are a better representation of our growth and future potential. This is especially true given the large value of repeat orders we have received for critical U.S. Navy projects, which we believe validates our position as a key supplier for the defence industry. I should note that January order rates have started out strong, which is very encouraging. I'll now turn the call over to Chris, who will provide more details on the quarter and expectations for the remainder of the year. Chris?

我們在美國海軍方面的成功導致了國防業務的大量積壓，我們將繼續加強我們在商業售後市場的地位，同時增加我們在不斷發展的航天工業中的影響力。事實上，我將在本次電話會議後更深入地探討海軍項目的積壓、長期可見性和增長潛力。雖然本季度 2000 萬美元的訂單疲軟，但我們認為這主要是由於時間安排以及對發布的大型項目的普遍潮起潮落的反映。我們過去 12 個月的訂單約為 1.76 億美元，訂單出貨比為 114%，更好地體現了我們的增長和未來潛力。考慮到我們收到的重要美國海軍項目的大量重複訂單，這一點尤其正確，我們相信這證實了我們作為國防工業主要供應商的地位。我應該注意到 1 月份的訂單率開始強勁，這非常令人鼓舞。我現在將電話轉給克里斯，他將提供有關本季度的更多詳細信息以及對今年剩餘時間的預期。克里斯？

Thank you, Dan, and good morning, everyone. I will begin my presentation on Slide 4. As Dan mentioned, our third quarter performance was in line with our expectations. We had record quarterly sales of $39.9 million, up 39% or $11.1 million over last year's third quarter and was driven by our defence refining aftermarket and space markets. I would like to point out that this growth was all organic as both periods include a full quarter from Barber-Nichols. Sales to the defence market were up $5 million and represented 54% of total revenue. The increase over the prior year period reflects the achievement of project milestones as well as improved execution. You may recall that last year's third quarter included the impact of U.S. Navy first article project labour and cost overruns, which impacted revenue as well as margin.

謝謝丹，大家早上好。我將從幻燈片 4 開始我的演講。正如丹所說，我們第三季度的表現符合我們的預期。我們的季度銷售額達到創紀錄的 3990 萬美元，比去年第三季度增長 39% 或 1110 萬美元，這主要得益於我們的國防煉油售後市場和太空市場。我想指出，這種增長都是有機的，因為這兩個時期都包括來自 Barber-Nichols 的整個季度。國防市場的銷售額增長了 500 萬美元，佔總收入的 54%。與去年同期相比的增長反映了項目里程碑的實現以及執行力的提高。您可能還記得去年第三季度包括美國海軍第一篇文章項目勞動力和成本超支的影響，這影響了收入和利潤率。

As noted in our release today, we delivered an additional first article unit for a critical U.S. Navy program during the quarter, bringing the total of first article units shipped to 4 this year. We are on schedule to ship the remaining first article units by the end of the second quarter in fiscal 2024. Base revenue increased $2 million versus the prior year and is being driven by newly awarded programs, which continue to ramp up and the relationships we have with many of the key commercial players in this growing industry. Additionally, during the quarter, we continued to see strong growth in the refining aftermarket, which was up $2.5 million or 64%. We are encouraged by this aftermarket demand as it oftentimes is a leading indicator of future capital investments by our customers. Additionally, we are proactively working to drive aftermarket demand, which is a key strategic initiative for us.

正如我們在今天的新聞稿中指出的那樣，我們在本季度為美國海軍的一個關鍵項目交付了一個額外的首件單元，使今年首件單元的出貨總量達到 4 個。我們按計劃在 2024 財年第二季度末運送剩餘的第一批產品。基本收入比上一年增加了 200 萬美元，並且受到新授予項目的推動，這些項目繼續增加，我們擁有的關係與這個不斷發展的行業中的許多主要商業參與者。此外，在本季度，我們繼續看到煉油售後市場的強勁增長，增長了 250 萬美元或 64%。我們對這種售後市場需求感到鼓舞，因為它通常是我們客戶未來資本投資的領先指標。此外，我們正在積極努力推動售後市場需求，這是我們的一項關鍵戰略舉措。

For the quarter, sales in the U.S. increased 34% and represented 83% of our sales, while international sales accounted for 70% of total sales and is 66% higher than 1 year ago. The mix of U.S. to international sales has shifted over the last couple of years, given the growth in our Navy business as well as the addition of Barber-Nichols, which sells primarily into the U.S.. Gross profit and margin improved significantly over the prior year period, which was impacted by the labour and material cost overruns I just mentioned. Sequentially, gross profit improved 18% on a 5% increase in revenue due to continued improvement in execution, better pricing as well as a better mix and increased volume. SG&A expense for the third quarter, excluding intangible amortization, was $5.3 million, up 12% or approximately $555,000.

本季度，美國銷售額增長 34%，占我們銷售額的 83%，而國際銷售額佔總銷售額的 70%，比一年前高出 66%。考慮到我們海軍業務的增長以及主要在美國銷售的 Barber-Nichols 的加入，美國與國際銷售的組合在過去幾年發生了變化。毛利潤和利潤率比上一年顯著提高期間，受到我剛才提到的人工和材料成本超支的影響。由於執行力的持續改善、更好的定價以及更好的組合和銷量的增加，毛利潤增加了 18%，收入增加了 5%。第三季度的 SG&A 費用（不包括無形攤銷）為 530 萬美元，增長 12% 或約 555,000 美元。

However, SG&A expense as a percentage of sales improved to 13.3% compared with 16.4% in the comparable period in fiscal 2022 as we continue to maintain strong cost discipline while growing our top line. The net result of our growth in revenue and gross profit, combined with strong cost discipline, as shown on Slide 5. For the third quarter of fiscal 2023, net income was $368,000 or $0.03 per diluted share. On an adjusted basis, earnings per share was $0.08 per diluted share, and adjusted EBITDA was $2.2 million. This was the third consecutive quarter of solid results as we have stabilized our business and improved execution. We continue to drive increased productivity through improved project management and accountability.

然而，SG&A 費用佔銷售額的百分比從 2022 財年同期的 16.4% 提高到 13.3%，因為我們在增加收入的同時繼續保持嚴格的成本控制。如幻燈片 5 所示，我們收入和毛利潤增長的淨結果，加上嚴格的成本控制。2023 財年第三季度，淨收入為 368,000 美元或攤薄後每股收益 0.03 美元。在調整後的基礎上，每股攤薄收益為 0.08 美元，調整後的 EBITDA 為 220 萬美元。這是連續第三個季度取得穩健的業績，因為我們穩定了業務並提高了執行力。我們繼續通過改進項目管理和問責制來提高生產力。

Turning to Slide 6, you can see our capitalization. Total debt at quarter end was $14.2 million compared with $19.1 million at the end of the second quarter. We paid down $5 million of debt during the quarter, which was funded by $9.3 million of cash flow from operations. I should point out that current quarter cash flow reflects $8 million of customer deposits received for materials related to larger defence contracts. Going forward, we expect our cash flow to be lumpy due to the nature of these large contracts. Also noteworthy is that these debt payments and stronger EBITDA levels brought our bank leverage ratio down to 2.5x at December 31, and we are now back in compliance with the original terms of our credit agreement. This is 1 quarter ahead of schedule and is a direct result of the hard work of the Graham associates who continue to execute our strategic plan.

轉到幻燈片 6，您可以看到我們的資本化。季度末的總債務為 1,420 萬美元，而第二季度末為 1,910 萬美元。我們在本季度償還了 500 萬美元的債務，這筆債務由 930 萬美元的運營現金流提供資金。我應該指出，當前季度的現金流反映了為購買與大型國防合同相關的材料而收到的 800 萬美元客戶存款。展望未來，由於這些大型合同的性質，我們預計我們的現金流量將不穩定。同樣值得注意的是，這些債務支付和更高的 EBITDA 水平使我們的銀行槓桿率在 12 月 31 日降至 2.5 倍，我們現在重新遵守信貸協議的原始條款。這比計劃提前了 1 個季度，是繼續執行我們戰略計劃的 Graham 員工辛勤工作的直接結果。

Capital expenditures for the quarter were $1.2 million, which brings the 9-month total to $2.4 million. We continue to expect capital expenditures to be approximately $3 million to $4 million for fiscal 2023, which implies about $1 million in CapEx for the fourth quarter at the midpoint of the range. Going forward, we expect capital expenditures to be at an elevated level as we invest in our growth initiatives. We are focused on generating cash to reduce debt and are making investments in organic growth opportunities. We have instituted strong cash management throughout the organization, which includes actively managing working capital and operating expenses while increasing oversight of capital expenditures to ensure a proper return on capital. Turning to Slide 7.

本季度的資本支出為 120 萬美元，使前 9 個月的資本支出總額達到 240 萬美元。我們繼續預計 2023 財年的資本支出約為 300 萬至 400 萬美元，這意味著第四季度的資本支出約為 100 萬美元，處於該範圍的中點。展望未來，隨著我們投資於增長計劃，我們預計資本支出將處於較高水平。我們專注於產生現金以減少債務，並正在投資有機增長機會。我們在整個組織內實施了強有力的現金管理，包括積極管理營運資金和運營費用，同時加強對資本支出的監督，以確保適當的資本回報。轉到幻燈片 7。

For the quarter, orders were soft primarily due to the project timing. Despite that, our pipeline of opportunities remains robust. For the 9-month period, orders were $151.9 million, up 26% over the prior year, and our book-to-bill ratio was 133%. This includes a 47% increase in defence orders, a 141% increase in space orders and a 33% increase in energy, chemical aftermarket orders. We believe that the repeat orders for critical U.S. Navy programs validates the investments we made over the last year and our customers' confidence in our execution. We also expect these repeat orders will be at higher margins through increased pricing and better execution. If you turn to Slide 8, you can see that orders drove an 8% increase in backlog from the third quarter last year and now sits at $294 million. We believe 40% to 50% of this backlog will convert within the next 12 months and 20% to 30% is expected to convert the following 12 months.

本季度，訂單疲軟主要是由於項目時間安排。儘管如此，我們的機會渠道仍然強勁。在 9 個月期間，訂單為 1.519 億美元，比上年增長 26%，我們的訂單出貨率為 133%。這包括國防訂單增加 47%、航天訂單增加 141% 以及能源、化學售後市場訂單增加 33%。我們相信，美國海軍關鍵項目的重複訂單證明了我們去年所做的投資以及客戶對我們執行的信心。我們還預計，通過提高定價和更好的執行，這些重複訂單將獲得更高的利潤。如果你翻到幻燈片 8，你會看到訂單使積壓訂單比去年第三季度增加了 8%，目前為 2.94 億美元。我們認為，40% 至 50% 的積壓訂單將在未來 12 個月內轉化，預計 20% 至 30% 將在接下來的 12 個月內轉化。

Most of the backlog expected to convert beyond 12 months is for the defence industry, primarily to the U.S. Navy. Defence now comprises 80% of our backlog and is significant in that it provides greater visibility and stability to our business. I'll now turn the call back to Dan to speak to our longer-term strategy and in particular, the opportunity with defence as well as our outlook for the remainder of the year. Dan?

預計將轉換超過 12 個月的大部分積壓訂單用於國防工業，主要是美國海軍。國防現在占我們積壓工作的 80%，其重要性在於它為我們的業務提供了更大的可見性和穩定性。我現在將電話轉回 Dan，談談我們的長期戰略，特別是防禦的機會以及我們對今年剩餘時間的展望。擔？

Thanks, Chris. Let's turn to Slide 9. As you saw on the last slide, we have measurably increased our presence in the defence industry. The recent wins have grown our defence backlog to $234 million, which is 80% of total backlog. And I'll remind you that more than half of our revenue in the quarter was from the defence industry. These long-term U.S. Navy contracts provide us longer-term visibility with revenue over several years, and the repeat build process drives a solid recurring increasingly profitable revenue stream.

謝謝，克里斯。讓我們轉到幻燈片 9。正如您在上一張幻燈片中看到的那樣，我們已經顯著增加了我們在國防工業中的影響力。最近的勝利使我們的國防積壓訂單增加到 2.34 億美元，佔總積壓訂單的 80%。我要提醒您，本季度我們一半以上的收入來自國防工業。這些長期的美國海軍合同為我們提供了數年收入的長期可見性，重複構建過程推動了穩固的經常性、利潤不斷增加的收入流。

Navy ship procurement spans over decades, and our contracts are often 3 to 5 years in duration. It's worth reminding you that we are often the sole qualified supplier on orders with high barriers to entry for the competition to overcome. -- executing well, delivering to plan and high quality helps ensure future orders. Once we win these opportunities, we work to expand our margin through improved efficiencies and supply chain management and improved pricing as we win future orders. Beyond the equipment we are currently supplying to the Navy, we see other potential revenue streams. There are, for example, opportunities for repair and maintenance revenue. And as we look further into the future, the next-generation attack submarine design has begun and Graham has a role in that development program.

海軍艦艇採購跨越數十年，我們的合同期限通常為 3 至 5 年。值得提醒您的是，我們通常是具有高進入壁壘的訂單的唯一合格供應商，以克服競爭。 -- 執行良好、按計劃交付和高質量有助於確保未來的訂單。一旦我們贏得了這些機會，我們就會努力通過提高效率和供應鏈管理以及在贏得未來訂單時改進定價來擴大我們的利潤。除了我們目前向海軍提供的設備外，我們還看到了其他潛在的收入來源。例如，有維修和保養收入的機會。隨著我們進一步展望未來，下一代攻擊潛艇的設計已經開始，格雷厄姆在該開發計劃中發揮了作用。

Now let's turn to Slide 10. This is a bit of an eye chart, but it will help you understand the growth potential we have as it relates to plants projects. I'll walk you through this. With the CBN Ford-class carrier, there are 2 completed carriers and 2 currently under construction. There are 8 remaining builds planned with a time line of 1 every 4 years. Our revenue per ship is approximately $40 million to $50 million. We estimate that over the remaining life of the program, including what we have in process, we have about $400 million in revenue potential. With the SSN Virginia class submarines, there are 22 subs completed and 8 are under construction.

現在讓我們轉到幻燈片 10。這是一張視力表，但它會幫助您了解我們在植物項目方面的增長潛力。我會引導你完成這個。 CBN 福特級航母有 2 艘完工航母和 2 艘正在建造中。計劃有 8 個剩餘構建，時間線為每 4 年 1 個。我們每艘船的收入約為 4000 萬至 5000 萬美元。我們估計，在該計劃的剩餘生命週期內，包括我們正在進行的項目，我們有大約 4 億美元的收入潛力。 SSN 弗吉尼亞級潛艇有 22 艘已完工，8 艘正在建造中。

Over the next 25-plus years, there are 36 remaining builds planned at about 2 subs per year. We estimate our future revenue potential for this ship class is about $300 million. I should point out that we are typically building ahead of actual submarine funding with advanced funding as new design blocks are initiated. Finally, for the SSBN Columbia class subs, there is one under construction and 11 planned builds remaining. The Navy is currently planning to build 1 Columbia class per year through 2035. -- our per sub revenue is approximately $40 million, with future -- total future revenue potential of $400 million. Based on these projects and then rounding up for Torpedo power and propulsion hardware that we provide, we estimate approximately $1 billion to $1.3 billion in total potential revenue over the next 30 years from these planned projects with the Navy.

在接下來的 25 多年裡，計劃建造 36 艘，每年建造約 2 艘。我們估計該船級的未來收入潛力約為 3 億美元。我應該指出，隨著新設計模塊的啟動，我們通常會先於實際的潛艇資金進行建設，並提供先進的資金。最後，對於 SSBN 哥倫比亞級潛艇，有 1 艘正在建造中，還有 11 艘計劃建造。海軍目前計劃到 2035 年每年建造 1 艘哥倫比亞級。——我們的每艘潛艇收入約為 4000 萬美元，未來——未來總收入潛力為 4 億美元。基於這些項目，然後匯總我們提供的魚雷動力和推進硬件，我們估計在未來 30 年內，這些計劃中的海軍項目的潛在總收入約為 10 億至 13 億美元。

The torpedo's content and value is confidential, as you might imagine, and of course, a number of torpedoes is subject to arsenal inventory plans. There's a lot of excitement here at Graham Corporation regarding our many Navy projects, and it does give us confidence regarding our strategic plan and goals. If you turn to the next slide, you can see our updated full year guidance. Overall, we did take our fiscal 2023 guidance up, including bumping the revenue range up to $145 million to $155 million, sticking with a gross margin of about 16%, SG&A about 15% of sales and adjusted EBITDA ranging between $7.5 million and $8.5 million. This implies an adjusted EBITDA margin of approximately 5% at the midpoint of the range, well short of our aspirational goals, but significantly above last year.

正如您想像的那樣，魚雷的內容和價值是機密的，當然，許多魚雷受制於武庫庫存計劃。格雷厄姆公司對我們的許多海軍項目感到非常興奮，這確實讓我們對我們的戰略計劃和目標充滿信心。如果轉到下一張幻燈片，您可以看到我們更新的全年指南。總體而言，我們確實提高了 2023 財年的指引，包括將收入範圍提高到 1.45 億美元至 1.55 億美元，毛利率保持在 16% 左右，SG&A 約佔銷售額的 15%，調整後的 EBITDA 介於 750 萬至 850 萬美元之間.這意味著調整後的 EBITDA 利潤率在範圍的中點約為 5%，遠低於我們的理想目標，但遠高於去年。

We are making steady progress against our plan and expect that we will continue to do so over the next several years. Importantly, as Chris noted, we are strengthening our balance sheet, improving financial flexibility and generating cash. This will help us -- help enable us to execute on our growth plans, both organically as well as with acquisitions. With that, operator, please open the phone lines, and Chris and I will be happy to answer any investor questions.

我們正在按照我們的計劃取得穩步進展，並預計我們將在未來幾年繼續這樣做。重要的是，正如克里斯指出的那樣，我們正在加強我們的資產負債表，提高財務靈活性並產生現金。這將幫助我們——幫助我們執行我們的增長計劃，包括有機增長計劃和收購計劃。有了這個，接線員，請打開電話線，克里斯和我很樂意回答投資者的任何問題。

(Operator Instructions). Our first question is from Theodore O'Neill with Litchfield Research.

（操作員說明）。我們的第一個問題來自 Litchfield Research 的 Theodore O'Neill。

Thank you very much and congratulations on the good quarter.

非常感謝您，並祝賀您取得了良好的成績。

Thanks Theo!

謝謝西奧！

Yes. So yes, it's clear that orders are lumpy here, and I want to talk about that for a minute. And if I look back over the last couple of years, fiscal 2020 was a desert and the orders have been sort of ramping up in 2021 and 2022 and if I do a trailing 12 months or last 4 quarter average, this is -- the curve keeps sloping upward. Does this -- how much further upward is this going to slope up in your opinion?

是的。所以是的，很明顯這裡的訂單很不穩定，我想談談這個。如果我回顧過去幾年，2020 財年是一片沙漠，訂單在 2021 年和 2022 年有所增加，如果我做過去 12 個月或最後 4 個季度的平均值，這就是 - 曲線一直向上傾斜。在您看來，這會向上傾斜多少？

Well, certainly, one big thing that happened in that time frame was the acquisition of Barber-Nichols. And so that certainly helped make the thing trend up. We -- again, kind of long-term guidance that we had put out there by fiscal 2027, we want to be at the $200 million range. So the smooth path there? Is it a lumpy path there, hard to tell at this point. But growth is something that we're working pretty hard on getting into strategic programs like we've been getting into being much more aggressive on the commercial side of the business and the energy and petrochem side as far as going after a lot of that aftermarket business all fits into this longer-term growth. So I would say that we -- it is expected to continue to grow and kind of towards that $200 million in 2027.

嗯，當然，在那段時間發生的一件大事就是收購了 Barber-Nichols。因此，這無疑有助於推動這件事的發展。我們 - 再次，我們在 2027 財年之前發布的長期指導，我們希望達到 2 億美元的範圍。那麼那裡的道路平坦嗎？那裡是一條崎嶇不平的道路嗎，目前還很難說。但增長是我們正在努力進入戰略計劃的東西，就像我們已經在業務的商業方面以及能源和石化方面變得更加積極進取，直到追求大量的售後市場所有業務都符合這種長期增長。所以我想說我們 - 預計到 2027 年將繼續增長並達到 2 億美元。

Okay. And in the refinery market, what are the dynamics there that are giving us confidence about the future business for you?

好的。在煉油市場，有哪些動態讓我們對您的未來業務充滿信心？

That market is kind of crazy. So there's -- certainly, we've seen an uptick in aftermarket orders and those have remained strong here over the last year. In the past, those have been a precursor to more of the capital, the larger capital type equipment orders. We haven't seen those pick up quite yet. But it's interesting to watch the market and a lot of the press regarding that and all of the big profits that the oil companies are making. Refineries are running full out. They're just unbelievably hard-pressed right now. And the U.S. really hasn't expanded our refining capacity for a while. So at some point, we do expect that we'll see some of the capital markets started to -- or the capital equipment orders start to turn on, but we just haven't quite seen that yet.

那個市場有點瘋狂。所以 - 當然，我們看到售後市場訂單有所增加，並且這些訂單在過去一年中一直保持強勁。過去，這些都是更多資本、更大資本類型設備訂單的先兆。我們還沒有看到那些回升。但有趣的是，觀察市場和許多媒體對此以及石油公司正在賺取的所有巨額利潤。煉油廠已經滿負荷運轉。他們現在的壓力令人難以置信。而且美國真的有一段時間沒有擴大我們的煉油能力了。因此，在某個時候，我們確實預計我們會看到一些資本市場開始——或者資本設備訂單開始啟動，但我們還沒有完全看到。

Okay. That makes sense. Thank you very much.

好的。這就說得通了。非常感謝。

Yes. Thank you Theo.

是的。謝謝西奧。

Our next question is from Graham Mattison with Water Tower Research.

我們的下一個問題來自 Water Tower Research 的 Graham Mattison。

Good morning everyone. Just a follow up on Ted's question around the aftermarket and the refining area. Can you give us -- you mentioned that you're really putting a proactive effort to drive aftermarket sales. Can you talk a little bit about what gives you that confidence around those and what type of efforts you'd be employing there?

大家，早安。只是跟進泰德關於售後市場和精煉領域的問題。你能給我們嗎 - 你提到你真的在積極主動地推動售後市場銷售。你能談談是什麼讓你對這些充滿信心，以及你會在那裡做出什麼樣的努力？

Yes. It's -- so Graham Corporation had a very significant database of installations and they talk about like $1 billion of installed base that they've had over the many, many years that they've been working in these markets. And as we look at that installed base, we realize that we're not as proactive in going back and following up with those prior customers to understand how the equipment is continuing to operate. Some of that equipment has met its lifetime, and it's time to replace it, and we just not have not been as aggressive with that as we could have been. So building up our aftermarket team using the database of the installed base to really understand how old is that equipment, what would we recommend to the operators as far as maintenance and replacement. And we've got a lot of industry experience knowing how long those things last. So helping our customers kind of get ready for that. So it's not an emergency in the end is really the tack that we're taking.

是的。它是 - 所以 Graham Corporation 擁有一個非常重要的安裝數據庫，他們談論他們在這些市場上工作多年以來擁有的大約 10 億美元的安裝基礎。當我們查看已安裝的基礎時，我們意識到我們並沒有主動回頭跟進那些以前的客戶以了解設備如何繼續運行。其中一些設備已經達到了它的使用壽命，是時候更換它了，我們只是沒有像我們本可以那樣積極進取。因此，使用已安裝基礎的數據庫來建立我們的售後團隊，以真正了解該設備有多舊，我們會向運營商推薦什麼維護和更換。我們有很多行業經驗，知道這些東西能持續多久。因此，幫助我們的客戶為此做好準備。所以最終這不是緊急情況，這才是我們正在採取的策略。

All right. Great. Yes no that makes sense. I mean, obviously, the existing fleet of refineries in the U.S. is just going to be around harder and harder because permitting to get anything new is going to become more challenging, it looks like. So one other question. Last call, you talked a little bit about that you are seeing some good activity around on the nuclear power space around the small modular reactors. -- given some of the events that are sort of positive announcements that have been coming out there in terms of players coming into that space, are you still seeing strength there? And if so, how soon do you think you could see orders from that area?

好的。偉大的。是的，不，這是有道理的。我的意思是，很明顯，美國現有的煉油廠只會越來越難，因為看起來，允許獲得任何新東西將變得更具挑戰性。那麼另一個問題。最後一次通話，你談到了你看到小型模塊化反應堆周圍的核電領域有一些很好的活動。 - 鑑於一些事件是關於玩家進入該領域的積極公告，你是否仍然看到那裡的力量？如果是這樣，您認為您多久可以看到該地區的訂單？

Yes. So that is very much an industry in the middle of research, development and technology demonstration. And the activity that we've seen there really has been to support those technology demonstrations. Some of them are subscale, some of them -- well, a lot of them are subscale actually. Some of them are working on just particular areas that they're trying to show technology works well. We don't expect really any production orders to come for, gosh, probably another 5 years. But this is the perfect place for engineered product companies to get involved in new technology. And that is just getting involved with the big players to help them demonstrate that technology, start to develop the new product and then be able -- be in the position to really help them roll this out as it starts to roll out. So we continue to stay involved. Are we involved with all the right players, hard to say, but we think that we're well positioned for any small modular nuclear types of applications going forward.

是的。因此，這在很大程度上是一個處於研究、開發和技術示範中間的行業。我們在那裡看到的活動實際上是為了支持這些技術演示。其中一些是次級的，其中一些——嗯，實際上很多都是次級的。他們中的一些人只在他們試圖展示技術運作良好的特定領域工作。我們不希望真的有任何生產訂單，天哪，可能再過 5 年。但這是工程產品公司涉足新技術的最佳場所。這只是讓大公司參與進來，幫助他們展示該技術，開始開發新產品，然後能夠——能夠在它開始推出時真正幫助他們推出它。所以我們繼續參與。我們是否參與了所有合適的參與者，很難說，但我們認為我們已經為未來任何小型模塊化核類型的應用程序做好了準備。

All right. Great. Thank you very much. I'll jump back in queue.

好的。偉大的。非常感謝。我會跳回到隊列中。

Our next question is from Gary Schwab with Valley Forge Capital Management.

我們的下一個問題來自 Valley Forge Capital Management 的 Gary Schwab。

Yes, hi Dan and Chris, great quarter. You guys are really turning this company around.

是的，嗨丹和克里斯，很棒的季度。你們真的在扭轉這家公司的面貌。

Thank you, Gary.

謝謝你，加里。

For 50 years, Graham has been known as a low multiple middle tank and piping fabricator for their industrial products. But since June of '21, when you acquired Barber-Nichols, you've almost overnight transformed the company into a highly technical, critical component manufacturer for defence industry and the fast-growing space industry. And I don't believe that the markets become aware of Graham's transformation. Certainly, I think your company should pick up a higher multiple that reflects that change. On the bottom of Slide 10, under the Graham engineered and manufactured content, you show a number of products that you manufacture, but investors really don't understand how critical these components are, especially for nuclear propulsion and subs and carriers.

50 年來，Graham 一直以其工業產品的低多中間罐和管道製造商而聞名。但自 21 年 6 月收購 Barber-Nichols 以來，您幾乎在一夜之間將該公司轉變為國防工業和快速發展的航天工業的技術含量高的關鍵部件製造商。而且我不相信市場會意識到格雷厄姆的轉變。當然，我認為貴公司應該選擇更高的倍數來反映這種變化。在幻燈片 10 的底部，在格雷厄姆設計和製造的內容下，你展示了你製造的一些產品，但投資者真的不明白這些組件有多重要，特別是對於核推進、潛艇和航母。

But also, here's one example that confused me. You show ejectors on Slide 10 or one of the components listed. I've been follow- I've been following Graham a lot of years, and I understood that Graham made ejectors and the ejectors were sophisticated, engineered Venturi pipes. They had no moving parts, but they manage the air pressure in the distillation process for refineries. And the description on your website under submarine ejection system says Barber-Nichols makes ejection assemblies that form part of the pressure boundary of naval submarines. But it really doesn't explain what these things are. And now I understand what these are. Could you, like for the benefit of new investors, maybe and existing investors who knew the old Graham, -- can you explain what these submarine ATP ejectors are and how complicated they are to develop and what their function was on Virginia class submarines.

但是，還有一個讓我感到困惑的例子。您在幻燈片 10 或列出的組件之一上顯示噴射器。我一直在關注 - 我一直在關注 Graham 很多年，我知道 Graham 製造了噴射器，而噴射器是精密的、經過工程設計的文丘里管。它們沒有活動部件，但可以控制煉油廠蒸餾過程中的氣壓。你網站上關於潛艇彈射系統的描述說，Barber-Nichols 製造的彈射組件構成了海軍潛艇壓力邊界的一部分。但它真的不能解釋這些東西是什麼。現在我明白這些是什麼了。你能不能，為了新投資者的利益，也許還有認識老格雷厄姆的現有投資者，你能解釋一下這些潛艇 ATP 噴射器是什麼，它們的開發有多複雜，以及它們在弗吉尼亞級潛艇上的作用是什麼。

Sure. Let me just probably explain both of them. So Graham manufacturing in Batavia that has been involved in refinery and petrochem plants, mixed vacuum equipment that is based on a convergent diverging nozzle. It's -- it's essentially an ejector that produces vacuum. And that is not to be confused with Torpedo ejection systems that are on submarines because torpedo ejection submarines on submarines are used to basically just eject the torpedo out of the submarine and you do that with your pumping water into the torpedo tube and pushing the Torpedo out of the submarine. So they -- while they have the same descriptor, they're greatly different applications and equipment. The Torpedo ejection system on a submarine is really a very sophisticated pump that's pumping water and then the ejector used in Power Systems and refinery applications and petrochem applications is more of a static piece of equipment that's based on a convergent diverging nozzle to generate vacuum.

當然。讓我大概解釋一下它們。因此，巴達維亞的 Graham 製造已經涉及煉油廠和石化廠，混合真空設備是基於收斂發散噴嘴。它 - 它本質上是一個產生真空的噴射器。這不要與潛艇上的魚雷彈射系統相混淆，因為潛艇上的魚雷彈射潛艇基本上只是將魚雷從潛艇中彈射出來，你可以通過將水泵入魚雷管並將魚雷推出來做到這一點潛艇的。所以它們——雖然它們具有相同的描述符，但它們是截然不同的應用程序和設備。潛艇上的魚雷彈射系統實際上是一個非常複雜的泵，可以抽水，然後電力系統、煉油廠應用和石化應用中使用的噴射器更像是一個靜態設備，它基於會聚發散噴嘴來產生真空。

Yes. Okay. And when I dug into it, it says it's a 10-stage system, and it has to be super silent for the (inaudible).

是的。好的。當我深入研究它時，它說它是一個 10 級系統，而且它必須非常安靜（聽不清）。

Yes, kind of interesting in the old movies, you would see the captain of the torpedo saying, "launch the torpedo!" and you hear this big Whoosh because they used to launch them with air pressure and the air really gave the submarine position away because it was so noisy. Now they launch them with water, and so they're much quieter.

是的，在老電影裡有點意思，你會看到魚雷的船長說，“發射魚雷！”你會聽到很大的嗖嗖聲，因為他們過去常常用氣壓發射它們，而空氣真的讓潛艇的位置暴露了，因為它太吵了。現在他們用水發射它們，所以它們安靜多了。

And you're sole source on these for Virginia?

你是弗吉尼亞這些的唯一消息來源？

Yes. Yes.

是的。是的。

Okay. Also on Slide 10, you didn't mention what you had in the past about regulators and alternators. And didn't you just win your third 5-year contract to manufacture alternatives and regulators for the MK-48 Torpedo?

好的。同樣在幻燈片 10 上，您沒有提到您過去擁有的有關調節器和交流發電機的內容。你不是剛剛贏得了第三個 5 年期合同，為 MK-48 魚雷製造替代品和調節器嗎？

Correct. Yes. So that is lumped into that torpedo power and propulsion hardware and Barber-Nichols is involved in several different programs, some that are brand new, some that are more in the technology demonstration realm, some that are in production. And so we tended to more genericize that and just describe that as Torpedo power and propulsion hardware.

正確的。是的。因此，這被歸入魚雷動力和推進硬件，Barber-Nichols 參與了幾個不同的項目，一些是全新的，一些更多地處於技術示範領域，一些正在生產中。因此，我們傾向於將其更通用化，並將其描述為魚雷動力和推進硬件。

Okay. But you're still sourcing those also, right?

好的。但你還在採購那些，對吧？

Correct.

正確的。

And it's not just for the Virginia class, but for 4 subclasses for Los Angeles, Ohio, Virginia and Columbia subs, covers a lot of torpedoes.

而且它不僅適用於弗吉尼亞級，而且適用於洛杉磯、俄亥俄、弗吉尼亞和哥倫比亞潛艇的 4 個子級，涵蓋了很多魚雷。

Yes, the heavyweight torpedo is used on all of the different submarines.

是的，所有不同的潛艇都使用了重量級魚雷。

Okay. And you're the only vendor on that for the Navy that's qualified.

好的。而且您是唯一一家合格的海軍供應商。

Yes, for the components that we're supplying, obviously.

是的，顯然是對於我們提供的組件。

Right.

正確的。

We're supplying those to a larger defence integrator prime that is providing the complete torpedo to the Navy.

我們正在將這些供應給更大的國防集成商 prime，後者正在為海軍提供完整的魚雷。

And the Navy needs a lot more of those, and that's why you're getting the CNC milling and turning machine so that you can accelerate your production?

海軍需要更多這樣的設備，這就是為什麼您要購買 CNC 銑床和車床以加快生產速度？

Yes. We've been asked to accelerate production.

是的。我們被要求加快生產。

(Operator Instructions). Our next question is from Bill Baldwin with Baldwin Anthony Securities.

（操作員說明）。我們的下一個問題來自 Baldwin Anthony Securities 的 Bill Baldwin。

Good morning Dan and Chris.

早上好，丹和克里斯。

Good morning Bill.

早上好，比爾。

Is the Graham Corporation now pretty much have all the key personnel positions filled, Dan and Chris, that need to be filled to execute your game plan going forward here?

格雷厄姆公司現在是否幾乎已經填補了所有關鍵人員職位，丹和克里斯，需要填補這些職位才能執行您在這裡的遊戲計劃？

I would say the key ones, yes, Bill. There's certainly some -- still some very important holes to fill as we go forward. But the key ones are pretty much filled at this point. And we're able to execute much better than we had in the past. So yes, I would say so. The only thing I would add to that is just like every other company, labour does continue to be a challenge. We are making substantial progress in that area and have seen quite a bit of increase in direct labour over the last year. So just like everyone else, the market for engineers and welders and skilled labour continues to be challenging, but we're navigating our way through that fairly well.

我會說關鍵的，是的，比爾。在我們前進的過程中，肯定有一些 - 仍然有一些非常重要的漏洞需要填補。但是此時關鍵的已經填滿了。而且我們能夠比過去更好地執行。所以是的，我會這麼說。我唯一要補充的是，就像其他所有公司一樣，勞動力確實仍然是一個挑戰。我們在該領域取得了實質性進展，去年直接勞動力有了相當大的增長。因此，就像其他人一樣，工程師、焊工和熟練勞動力市場仍然充滿挑戰，但我們正在順利度過難關。

As far as, I guess, important positions, how are you staffed up regarding your technical engineers to focus on your petrochemical and refinery aftermarket business as you go after greater penetration of the installed base on the repair and maintenance side of the business. Are you staffed up there the way you want to be to pursue that business as aggressively as you'd like to?

就重要職位而言，您如何配備技術工程師以專注於您的石化和煉油廠售後市場業務，因為您要在業務的維修和維護方面更大程度地滲透已安裝的基礎。您是否按照您希望的方式在那裡配備員工，以積極進取的方式從事該業務？

No. We still have open positions in Batavia for engineering. We believe that we need more to be able to handle additional volume that may be coming in the future. As Chris had mentioned, people are still tough to come by unemployment is still relatively low. And so just individual positions with companies within our companies are a little bit tough to fill still even after we've come out of COVID and so...

沒有。我們在巴達維亞仍有工程職位空缺。我們認為，我們需要更多才能處理未來可能出現的額外數量。正如克里斯所提到的，失業率仍然相對較低，人們仍然很難來。因此，即使在我們擺脫 COVID 之後，我們公司內部公司的個別職位仍然有點難以填補，所以......

How about the personnel in your regional offices down in the Gulf, they're calling maybe more directly on the customer. How are you staff down there right now?

你在海灣地區的區域辦事處的人員怎麼樣，他們可能更直接地打電話給客戶。你那裡的員工現在怎麼樣？

Staff...

職員...

In regional offices...

在地區辦事處...

Yes, we still have one more opening that we're trying to fill within the Houston office, but doing fairly well there.

是的，我們在休斯敦辦公室還有一個空缺，我們正試圖填補這一空缺，但在那裡做得相當好。

Okay. And I know it's probably a little early to talk about your strategic focus on fiscal '24, but at this stage, are you in a position to kind of outline from a high level what your, let's say, key focus or key performance focus will be with the company in 2024?

好的。而且我知道現在談論您對 24 財年的戰略重點可能還為時過早，但在這個階段，您是否能夠從高層概述您的關鍵重點或關鍵績效重點將是什麼？ 2024 年在公司工作？

Not quite...

不完全的...

We're not talking so much financially as I am, I guess, just strategically. As far as...

我想，我們並沒有像我那樣談論財務上的太多，只是戰略上的。據，直到...為止...

Yes, not quite...

是的，不完全...

Key initiatives, I guess, is what I'm talking about key initiatives.

我想，關鍵舉措就是我所說的關鍵舉措。

Yes. So certainly, from a strategic plan perspective, you don't want to completely change direction from year to year. So I would suspect that it will be a very, very well aligned actually with the strategic plan we laid out. Yes, last year. We're tweaking it at this point. We're modelling the budgets, looking at our markets, understanding where the revenue is coming from, et cetera. But we haven't completed that process. And getting-- haven't gotten approval from our Board yet for that. So we're still in the process, but I would suspect that it will be very much along the lines of -- we have stabilized Grand Batavia pretty well. You'll continue to see improvement initiatives there to get better and better. And then on the Barber-Nichols side, we talked about kind of the 4 major areas of work that Barber-Nichols is pursuing, and that hasn't changed. So at a high level, it will be tweaks on last year's strategic plan to take -- to take what we learned this year and improve ourselves even more.

是的。所以當然，從戰略計劃的角度來看，你不想年復一年地完全改變方向。所以我懷疑這實際上與我們制定的戰略計劃非常非常一致。是的，去年。我們現在正在調整它。我們正在為預算建模，研究我們的市場，了解收入的來源，等等。但是我們還沒有完成那個過程。並獲得 - 尚未獲得我們董事會的批准。所以我們仍在這個過程中，但我懷疑這將非常符合——我們已經很好地穩定了大巴達維亞。您將繼續看到那裡的改進計劃變得越來越好。然後在 Barber-Nichols 方面，我們談到了 Barber-Nichols 正在從事的 4 個主要工作領域，這一點沒有改變。因此，在高層次上，這將是對去年戰略計劃的調整——利用我們今年學到的東西，進一步提高自己。

Just two more quick items, if I could, Dan and Chris. On the Batavia manufacturing -- are you still using some outside contract labour to get your work done or are you pretty much got rid of that now to your internal staff-- your internal production staff.

丹和克里斯，如果可以的話，還有兩個快速項目。在 Batavia 製造中——您是否仍在使用一些外部合同工來完成您的工作，或者您現在是否已經基本上擺脫了內部員工——您的內部生產人員。

You want to take that one, Chris?

你想拿那個嗎，克里斯？

Sure. Yes. So the contract welders that we held to get back on schedule, those have -- all those contractors have left and have been dismissed. We do from time to time to fill in for the gaps in production, we do subcontract out some of our commercial work. So we do still have that going on, but the contract welders that we had on site have gone home.

當然。是的。因此，我們要求按時返回的合同焊工，那些已經 - 所有那些承包商都已經離開並被解雇了。我們不時會填補生產空白，我們會分包一些商業工作。所以我們確實還在繼續，但我們在現場的合同焊工已經回家了。

Okay. And secondly, I just wonder if you could do a little bit more of a deep dive into the nature of your space business as far as the -- maybe not so much the customers who I assume are probably confidential, but the types of products that are being included in the space business, what's the nature of the products there, the key products.

好的。其次，我只是想知道你是否可以更深入地了解你的太空業務的性質——也許不是我認為可能保密的客戶，而是產品的類型被包括在太空業務中，那裡的產品是什麼性質，關鍵產品。

Yes. Kind of think about it mostly as fluid movement. So we get involved in launch vehicles where we're basically pumping fluid out of the tanks and into the combustion chamber. And so those are rocket engine turbo pumps is what we talk about.

是的。主要將其視為流體運動。所以我們參與了運載火箭，我們基本上是將液體從油箱中泵出並進入燃燒室。因此，我們談論的是火箭發動機渦輪泵。

Right...

正確的...

And then we also have thermal management systems on communication satellites. So it's pumping fluid around within the satellite to cool the electronics and communication equipment so thermal management systems. And then we've also got a contract through NASA that is public that where we're developing both blowers and pumps for the babies -- or excuse me, the NASA's future backpack. So when the astronauts go on Space walks, Barber-Nichols will have some of the environmental control types of equipment in those backpacks.

然後我們在通信衛星上也有熱管理系統。所以它在衛星內部泵送流體來冷卻電子和通信設備以及熱管理系統。然後我們還通過 NASA 獲得了一份公開的合同，我們正在為嬰兒開發鼓風機和泵——或者對不起，NASA 的未來背包。因此，當宇航員進行太空行走時，Barber-Nichols 將在這些背包中放置一些環境控制類型的設備。

And do you look for the trajectory of the space business to be fairly I guess, non-lumpy, I'll say, I mean, or is it going to be kind of probably up and down, but the long-term trend will be up -- is it going to have a lot of volatility to it? Or is it going to be fairly predictable...

我想你是否認為太空業務的軌跡是公平的，不是顛簸的，我的意思是，或者它可能會上下波動，但長期趨勢將是向上 - 它會有很大的波動性嗎？或者它會是相當可預測的......

I don't think it will be predictable, Bill. But it's so small right now that we do expect that it will continue to grow. It might be a little bit lumpy depending upon what applications we get on. We are searching for those applications that have repeat potential associated with them. So launch vehicles is one of those. -- satellites is another one of those. And then the backpacks, not sure how many they're going to be making, but there's multiples of those also. So we're -- we tend to kind of focus on the ones that have some repeat potential associated with them because that forms more of a steady base of business than the one-offs. So -- while the one officer a lot of fun from an engineering perspective, they aren't as good from a business stability...

我不認為這是可以預測的，比爾。但它現在太小了，我們確實希望它會繼續增長。根據我們使用的應用程序，它可能有點不規則。我們正在尋找那些具有重複潛力的應用程序。所以運載火箭就是其中之一。 - 衛星是其中的另一個。然後是背包，不確定他們會生產多少，但也有很多。所以我們——我們傾向於關注那些具有重複潛力的公司，因為這比一次性業務更能形成穩定的業務基礎。所以——雖然從工程的角度來看，一名官員很有趣，但從業務穩定性的角度來看，他們並不那麼好……

Right right... I understand. Well, congratulations on the job you fellows are doing. And thank you for your time today.

對對對……我明白了。好吧，祝賀你們所做的工作。感謝您今天的時間。

Thank you, Bill.

謝謝你，比爾。

Our next question is from John Bair with Ascend Wealth.

我們的下一個問題來自 Ascend Wealth 的 John Bair。

Thank you, good morning Dan and Chris.

謝謝，丹和克里斯，早上好。

Hey John.

嘿，約翰。

Morning.

早晨。

To echo the previous callers about the great job that's going on and the turnaround well underway, it looks like. So congrats on that. You touched on space quite a bit, which is what was one of my questions. So I can skip on. I was just wondering, is your welding schools operating, you still involved with that?

為了回應之前的來電者關於正在進行的出色工作以及正在順利進行的轉變，它看起來像。所以恭喜你。你相當多地談到了空間，這是我的一個問題。所以我可以跳過。我只是想知道，你們的焊接學校還在運營嗎，你們還參與其中嗎？

Yes. No, we still

是的。不，我們還是

(technical difficulty)

（技術難度）

for the students that attend and then in exchange for that, they come to work for us for 2 years. We just had a class that graduated at the end of the year, and we're recruiting for our class, which is going to start here in February, and we have some good response there, and we continue to -- it's been a nice program for us. As I mentioned, we have -- we're at the highest level in Batavia of direct labour than we've been for the last 1.5 years. So we're pleased in the way that's going. We continually need to bring in talent. As we talked about earlier on the call with welders and engineers and looking for ways to keep doing that. And as you heard Dan mention, Barber-Nichols being ranked in the top 10 on glass door for small- and medium-sized business companies to work for just shows some of the work that they're doing to recruit talent. So just like everyone else, talent is a resource that we continue to go after.

對於參加的學生，然後作為交換，他們來為我們工作 2 年。我們剛有一個班級在年底畢業，我們正在為我們的班級招聘，該班級將於 2 月在這裡開始，我們在那裡得到了一些很好的反響，我們將繼續 - 這是一個很好的給我們的節目。正如我所提到的，我們已經 - 我們在巴達維亞的直接勞動力水平比過去 1.5 年最高。所以我們對目前的方式感到滿意。我們需要不斷引進人才。正如我們早些時候在與焊工和工程師的電話會議上談到的，並正在尋找繼續這樣做的方法。正如你聽到 Dan 提到的那樣，Barber-Nichols 被評為適合中小型企業工作的玻璃門前 10 名，這表明他們在招聘人才方面所做的一些工作。因此，就像其他人一樣，人才是我們不斷追求的資源。

Sure. So that's probably something that's more of a fixture longer term, not something that you would conceivably stop pursuing the school -- the welding school that is...

當然。所以從長遠來看，這可能更像是固定的東西，而不是你可以想像停止追求學校的東西——焊接學校是……

Correct.

正確的。

Is something that could be on for a long time. Okay. And then you touched about... I'm sorry, say again?

是可以持續很長時間的東西。好的。然後你觸及了……對不起，再說一遍？

No, I just said for the foreseeable future, we expect to continue that program.

不，我只是說在可預見的未來，我們希望繼續該計劃。

Sure. Great. And you mentioned, too, in the call about needing some engineers in the Batavia office. And I was just wondering, do you have many in your Gulf Coast, Houston area and the thought being there's such a vast amount of petrochemical and refining activities there that perhaps the pool of recruits would be better, and I'm sure you've thought about this, but I was just wondering how you look at that? Or is the Batavia positions more specific to the needs up there?

當然。偉大的。你在電話中也提到了巴達維亞辦公室需要一些工程師。我只是想知道，你們在墨西哥灣沿岸、休斯頓地區是否有很多人，而且考慮到那裡有大量的石化和煉油活動，也許新兵人數會更好，我相信你們已經考慮過這個，但我只是想知道你是怎麼看的？或者 Batavia 職位是否更符合那裡的需求？

Yes. So I would say that the approach that we've taken thus far for the Gulf Coast area, it was really on the sales and service engineering side, and we haven't put design engineers down there yet. But boy, everything is open at this point. We think that we have better control over our designs have the subject matter experts in Batavia. But we are looking at alternative ways to be able to outsource more of the mundane engineering tasks that are being done in Batavia now that potentially we could be having done elsewhere and then have our subject matter experts really be able to work on the high-value engineering contributions. And so -- so John, I would probably just to answer your question more along the lines of, yes, all things are open, and we're considering several at this point.

是的。所以我想說，到目前為止，我們為墨西哥灣沿岸地區採取的方法實際上是在銷售和服務工程方面，我們還沒有讓設計工程師在那裡。但是男孩，此時一切都是開放的。我們認為我們可以更好地控制我們的設計，擁有巴達維亞的主題專家。但是我們正在尋找其他方法，以便能夠將更多在巴達維亞完成的平凡工程任務外包出去，因為我們可能已經在其他地方完成了，然後讓我們的主題專家真正能夠從事高價值的工作工程貢獻。所以 - 所以 John，我可能只是想更多地回答你的問題，是的，所有事情都是開放的，我們現在正在考慮幾個。

I just think that perhaps a pool might be a little bit bigger down there and folks that might be more inclined to join Graham or Barber-Nichols without having to move. So just just relative thought there. And then lastly, I know in the past, you talked a little bit about some exposure to biodiesel and the green revolution, if you will. And really not much colour on that. Can you talk a little bit about that? Are you seeing much continued activity or interest in that area that you can be involved in?

我只是認為，也許那裡的游泳池可能會更大一些，而那些可能更傾向於加入 Graham 或 Barber-Nichols 而不必搬家的人。所以只是相對的想法。最後，我知道過去，如果你願意的話，你談到了一些關於生物柴油和綠色革命的接觸。真的沒有太多顏色。你能談談嗎？您是否看到您可以參與的那個領域有很多持續的活動或興趣？

Yes, absolutely. The-- Graham has provided quite a few different types of heat exchangers to biodiesel applications and continues to have more inquiries in those areas. So absolutely, yes, and we're pursuing that fairly heavily. On the hydrogen side, we're also seeing quite a bit of activity. And so for both companies, actually. And so this is, again, one of those kind of early types of industries that people are trying to figure out what the best solution is, demonstrating the technology and then starting to build the initial plants to produce this and distribute the hydrogen, et cetera. And we are talking to many in that space. So -- we're pretty excited about that. And I think that you'll see more and more press releases coming out in the future about that because there is a ton of money being spent in those areas. So we would expect that we'll win some of those going forward.

是的，一點沒錯。 Graham 已經為生物柴油應用提供了多種不同類型的熱交換器，並繼續在這些領域進行更多諮詢。所以絕對是的，我們正在相當努力地追求這一點。在氫方面，我們也看到了相當多的活動。實際上，對於兩家公司而言。因此，這又是一種早期類型的行業，人們正試圖找出最好的解決方案，展示技術，然後開始建造最初的工廠來生產和分配氫氣，等等.我們正在與那個領域的許多人交談。所以 - 我們對此感到非常興奮。而且我認為你會在未來看到越來越多的新聞稿發布，因為在這些領域花費了大量資金。所以我們希望我們能贏得其中的一些。

And one last one. Do you have any potential exposure to carbon capture sequestration facility...

還有最後一個。您是否有任何潛在的接觸碳捕獲封存設施的風險...

Not. Not Really at this point, John. We just have not seen a lot there yet. And so that's one area that I would say that we haven't seen a lot of exposure to.

不是。在這一點上不是真的，約翰。我們只是還沒有看到很多。所以這是一個我想說我們還沒有看到太多曝光的領域。

Well, very good. Congratulations again.

嗯，非常好。再次祝賀。

We have reached the end of our question-and-answer session. I would like to turn the conference back over to Dan for closing comments.

我們的問答環節已經結束。我想將會議轉回 Dan 以徵求結束意見。

Thank you, Sherry, and thank you, everyone, for joining us here today. We are excited about Graham Corporation's future. And I hope that you share in that excitement. We are building better companies, creating opportunities and steadily delivering on our plan. I look forward to talking with you again in the near future. Have a nice day.

謝謝雪莉，也謝謝大家今天加入我們。我們對格雷厄姆公司的未來感到興奮。我希望你能分享那種興奮。我們正在建設更好的公司，創造機會並穩步實現我們的計劃。我期待在不久的將來再次與您交談。祝你今天過得愉快。

Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。您此時可以斷開您的線路，感謝您的參與。