Generac Holdings Inc (GNRC) 2024 Q1 法說會逐字稿

Thank you for standing by, and welcome to the Generac Holdings First Quarter 2024 Earnings Call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝您的耐心等待，歡迎參加 Generac Holdings 2024 年第一季財報電話會議。 （操作員指示）提醒一下，今天的節目正在錄製中。

And now I'd like to introduce your host for today's program, Kris Rosemann, Senior Manager, Corporate Development and Investor Relations. Please go ahead.

現在我想介紹今天節目的主持人克里斯·羅斯曼 (Kris Rosemann)，他是企業發展和投資者關係高級經理。請繼續。

Good morning, and welcome to our first quarter 2024 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer.

早上好，歡迎參加我們的 2024 年第一季財報電話會議。我要感謝大家今天早上加入我們。今天與我在一起的是總裁兼執行長 Aaron Jagdfeld；和財務長約克·雷根。

We will begin our call today by commenting on forward-looking statements. Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements. Please see our earnings release or SEC filings for a list of words or expressions that identify such statements and the associated risk factors.

我們今天將首先對前瞻性陳述發表評論。本簡報中的某些陳述以及 Generac 或其員工不時提供的其他資訊可能包含前瞻性陳述，並涉及可能導致實際結果與這些前瞻性陳述中的結果有重大差異的風險和不確定性。請參閱我們的收益報告或 SEC 文件，以了解識別此類聲明和相關風險因素的單字或表達方式清單。

In addition, we will make reference to certain non-GAAP measures during today's call. Additional information regarding these measures, including reconciliation to comparable U.S. GAAP measures, is available in our earnings release and SEC filings.

此外，我們將在今天的電話會議中參考某些非公認會計原則措施。有關這些措施的更多信息，包括與可比較的美國公認會計準則措施的調節，請參閱我們的收益報告和美國證券交易委員會的文件。

I will now turn the call over to Aaron.

我現在將把電話轉給亞倫。

Thanks, Kris. Good morning, everyone, and thank you for joining us today. Our first quarter results were ahead of our prior expectations due to higher-than-expected C&I shipments, favorable input costs and strong operational execution. We are reiterating our overall 2024 outlook this morning for net sales, adjusted EBITDA margin and free cash flow conversion, which York will discuss more in detail later in the call.

謝謝，克里斯。大家早安，感謝您今天加入我們。由於工商業出貨量高於預期、有利的投入成本和強勁的營運執行力，我們第一季的業績超出了我們先前的預期。今天上午，我們重申了對 2024 年淨銷售額、調整後 EBITDA 利潤率和自由現金流轉換的總體展望，約克將在稍後的電話會議中更詳細地討論這些內容。

Year-over-year, overall net sales increased slightly to $889 million. Residential product sales increased 2% as compared to the prior year quarter as strong growth in home standby generator shipments was partially offset by a decline in certain other residential product sales.

整體淨銷售額年增至 8.89 億美元。住宅產品銷售額較上年同期成長 2%，原因是家用備用發電機出貨量的強勁成長被某些其他住宅產品銷售額的下降部分抵消。

Global C&I product sales decreased 2% from a strong prior year period as a robust increase in shipments to our industrial distributor customers, mostly offset weakness in the domestic rental and telecom markets. Significant year-over-year margin expansion and disciplined working capital management helped drive a substantial improvement in free cash flow generation from the prior year, while we continue to invest in our strategic initiatives.

全球工商業產品銷售額較上年同期下降 2%，原因是向工業分銷商客戶發貨的強勁增長，大部分抵消了國內租賃和電信市場的疲軟。同比利潤率大幅成長和嚴格的營運資本管理有助於推動自由現金流產生較上一年大幅改善，同時我們繼續投資於我們的策略性舉措。

Home standby shipments were in line with our prior expectations during the quarter, increasing at a mid-teens rate from the softer prior year period that included a meaningful headwind from excess field inventory levels. As expected, shipments and activations were aligned exiting the first quarter, signaling that field inventory levels are reaching more normalized levels. The removal of the excess field inventory headwind is expected to support strong year-over-year growth in home standby generator sales in the coming quarters.

本季家庭備用出貨量符合我們先前的預期，與去年同期相比以十幾歲左右的速度成長，其中包括現場庫存水準過剩帶來的重大阻力。正如預期的那樣，第一季的出貨量和啟動量保持一致，這表明現場庫存水準正在達到更正常化的水準。消除現場庫存過剩的不利因素預計將支持未來幾季家用備用發電機銷售的年比強勁成長。

Power outage activity in the U.S. during the first quarter was approximately in line with the longer-term baseline average as higher outages in January were offset by lower outage activity in the months of February and March. Activations, which are a proxy for installs, declined modestly from the prior year period, reflecting the softer outage environment over the last several quarters and resulting weaker home consultation performance, specifically in the fourth quarter of 2023.

美國第一季的停電活動與長期基線平均水平大致一致，因為一月份停電的增加被二月和三月停電活動的減少所抵消。作為安裝量指標的激活量較上年同期略有下降，反映出過去幾季的停電環境趨於疲軟，導致家庭諮詢業績疲軟，特別是在 2023 年第四季。

Home consultations did increase sequentially during the first quarter but declined on a year-over-year basis from a very strong prior year period. For historical perspective, home consultations in the first quarter were modestly higher than the first quarter of 2022 but were more than 3.5x higher than the first quarter of 2019. Additionally, we experienced moderate sequential improvement in close rates during the first quarter as we continue to execute initiatives that we believe will drive further increases beyond this year, including data-driven lead optimization practices, sales tool enhancements and improved lead nurturing practices.

第一季家庭諮商數量確實連續增加，但與去年同期的強勁表現相比，年比有所下降。從歷史角度來看，第一季的房屋諮詢量略高於2022 年第一季度，但比2019 年第一季度高出3.5 倍以上。成交率也經歷了適度的環比改善執行我們相信將在今年之後進一步推動增長的舉措，包括數據驅動的潛在客戶優化實踐、銷售工具增強和改進的潛在客戶培育實踐。

We are also making ongoing investments in engaging with our end customers and bringing awareness of the category to new and broader demographic categories to expand the overall sales funnel for home standby generators. We ended the first quarter with our residential dealer count at approximately 8,800, a net increase of 100 dealers during the period. We have also been experiencing good traction with nondealer contractors as we have seen steady increases in the number of installers in our Aligned Contractor Program, an effort that helps us better strengthen these relationships and improve our installation bandwidth while allowing contractors to purchase products through their preferred channel.

我們也持續投資與最終客戶互動，並提高新的和更廣泛的人口類別對該類別的認識，以擴大家用備用發電機的整體銷售管道。第一季末，我們的住宅經銷商數量約為 8,800 家，期內淨增加 100 家。我們也受到非經銷商承包商的良好關注，因為我們看到我們的聯合承包商計劃中的安裝人員數量穩步增加，這一努力有助於我們更好地加強這些關係並提高我們的安裝頻寬，同時允許承包商透過他們的首選購買產品管道。

We will continue to invest in growing our network of installers including both dealers and nondealer installers as well as in the tools and teams -- as well as the tools and teams to support and optimize these distribution partners, which we view as a key competitive advantage for our business. Our teams have also continued to make incremental operational improvements within our home standby production facilities. These improvements contributed to the margin expansion that we experienced in recent quarters, and this momentum bodes well for future growth and profitability.

我們將繼續投資發展我們的安裝商網絡，包括經銷商和非經銷商安裝商，以及工具和團隊，以及支持和優化這些分銷合作夥伴的工具和團隊，我們認為這是一個關鍵的競爭優勢為了我們的業務。我們的團隊也持續對我們的家庭備用生產設施進行漸進式營運改善。這些改善促進了我們最近幾季的利潤率擴張，這種勢頭預示著未來的成長和獲利能力。

We believe we are emerging from the recent field inventory challenges with a continued focus on quality and execution as well as an improved competitive position. We will continue to leverage our unparalleled scale and strength in manufacturing, sourcing, marketing, distribution and our strong financial profile to drive growth in the home standby market in the years ahead as we grow the number of consumers engaging in the category, expand our industry-leading omnichannel distribution network, invest in customized sales processes and tools to drive close rates higher and expand the broadest product portfolio in the market.

我們相信，透過持續專注於品質和執行以及提高競爭地位，我們正在擺脫最近的現場庫存挑戰。我們將繼續利用我們在製造、採購、行銷、分銷方面無與倫比的規模和實力以及強大的財務狀況，隨著參與該類別的消費者數量的增加、擴大我們的行業，在未來幾年推動家庭備用市場的成長-領先的全通路分銷網絡，投資客製化銷售流程和工具，以提高成交率並擴大市場上最廣泛的產品組合。

While home standby shipments were in line with our prior expectations during the first quarter, however, our overall residential product sales were lower than expected due to continued softness in global portable generator shipments as well as weaker domestic energy storage in EV markets and continued post pandemic-related challenges with the market for chore products. We expect these specific softer end market conditions to impact our overall residential product category, sales growth for the full year 2024, but our expectations for home standby generator shipments are unchanged relative to our prior guidance.

雖然第一季家庭備用出貨量符合我們先前的預期，但由於全球便攜式發電機出貨量持續疲軟以及電動車市場國內儲能疲軟以及疫情後持續疲軟，我們的整體住宅產品銷售額低於預期與家務產品市場相關的挑戰。我們預計這些特定的疲軟終端市場狀況將影響我們的整體住宅產品類別以及 2024 年全年的銷售成長，但我們對家用備用發電機出貨量的預期相對於我們先前的指導沒有變化。

Now moving to our Residential Energy Technology Products and Solutions, our Ecobee team continued to drive year-over-year sales growth in the first quarter despite a challenging retail environment as performance with professional contractors remain strong. Ecobee's number of connected homes and services attached rate also experienced positive momentum during the quarter. Importantly, Ecobee's gross margin improved meaningfully on a year-over-year basis, primarily due to cost reduction initiatives and improvement in electronic component supply chains relative to the first quarter of 2023.

現在轉向我們的住宅能源技術產品和解決方案，儘管零售環境充滿挑戰，但由於專業承包商的業績依然強勁，我們的 Ecobee 團隊在第一季繼續推動同比銷售成長。 Ecobee 的連網家庭數量和附加服務數量在本季度也經歷了積極的勢頭。重要的是，Ecobee 的毛利率比去年同期大幅提高，這主要是由於相對於 2023 年第一季的成本削減措施和電子元件供應鏈的改善。

Within our residential clean energy product suite, we continue to make progress on key product development objectives. And additionally, fleet health of our installed base has materially improved after substantially completing our warranty upgrade program in 2023 and with a continued laser focus on improving the quality of these products and solutions.

在我們的住宅清潔能源產品套件中，我們繼續在關鍵產品開發目標上取得進展。此外，在 2023 年基本完成保固升級計畫並持續專注於提高這些產品和解決方案的品質後，我們的安裝基礎的車隊健康狀況得到了實質改善。

We are also moving forward in our partnerships with the Department of Energy as we work to bring clean power generation and resiliency to Puerto Rico via our residential energy storage systems and through our participation in the grid resilience and innovation partnership program in Massachusetts, which demonstrates our ability to integrate multiple technologies to support our homes energy needs while also providing additional value for grid operators.

我們也正在推動與能源部的合作夥伴關係，努力透過我們的住宅儲能係統以及參與馬薩諸塞州的電網彈性和創新合作夥伴計劃，為波多黎各帶來清潔發電和彈性，這表明我們能夠整合多種技術來支持我們家庭的能源需求，同時也為電網營運商提供額外的價值。

Finally, we remain excited about our collaboration with Wallbox as we will begin shipments of the company's best-in-class EV charging solutions during the second quarter. We continue to expect that the investments we're making to develop residential energy technology solutions will generate attractive returns in the years to come. Our teams are focused on deep integration of the products and platforms we have acquired while tightening our focus on building high-quality solutions where we believe we can create the most value for the consumer.

最後，我們對與 Wallbox 的合作仍然感到興奮，因為我們將在第二季開始出貨該公司一流的電動車充電解決方案。我們仍然預計，我們為開發住宅能源技術解決方案而進行的投資將在未來幾年產生可觀的回報。我們的團隊專注於我們所收購的產品和平台的深度整合，同時更加重視建構高品質的解決方案，我們相信我們可以為消費者創造最大的價值。

With improved focus and execution and by leveraging our core competencies around sales and marketing, lead generation, distribution, customer support and global sourcing, we believe we can create competitive advantages that will become evident over time as we continue to develop the smart energy home of the future.

透過提高重點和執行力，並利用我們在銷售和行銷、潛在客戶開發、分銷、客戶支援和全球採購方面的核心能力，我們相信我們可以創造競爭優勢，隨著我們繼續開發智慧能源家居，這種優勢將隨著時間的推移而變得明顯。

Switching gears, I now want to provide some commentary on our C&I products. Global C&I product sales declined 2% from the prior year, which was ahead of our prior expectations, driven by a decrease in sales to domestic telecom and rental customers, partially offset by continued growth in our North American industrial distributor channel and certain industrial and international markets.

切換話題，我現在想對我們的 C&I 產品發表一些評論。全球工商業產品銷售額較前一年下降2%，超出了我們先前的預期，原因是國內電信和租賃客戶的銷售額下降，但部分被我們的北美工業分銷商通路以及某些工業和國際市場的持續成長所抵銷。

As a result of the strong first quarter outperformance, our expectations for full year 2024 C&I product sales are now higher. Shipments of C&I generators to our North American distributor channel again grew significantly in the first quarter. Quoting activity remained resilient in the quarter, and we continue to drive market share gains within our core product lineup. In addition, our operational execution helped to reduce lead times during the quarter.

由於第一季的強勁表現，我們對 2024 年全年工商業產品銷售的預期更高。第一季向我們北美經銷商通路供應的工商業發電機的出貨量再次大幅成長。本季報價活動保持彈性，我們持續推動核心產品陣容的市佔率成長。此外，我們的營運執行有助於縮短本季的交貨時間。

As expected, shipments to national telecom and rental customers declined in the quarter from the strong prior year period. Consistent with our prior expectations, we believe these end markets will remain soft in the coming quarters. However, despite the cyclical weakness in the rental channel, we continue to believe this end market has substantial runway for future growth given the critical need for future infrastructure projects that leverage our products.

正如預期的那樣，本季向全國電信和租賃客戶的出貨量較上年同期下降。與我們先前的預期一致，我們認為這些終端市場在未來幾季將保持疲軟。然而，儘管租賃管道出現週期性疲軟，但鑑於對利用我們產品的未來基礎設施項目的迫切需求，我們仍然相信該終端市場具有未來成長的廣闊空間。

Additionally, leveraging our 40 years of experience serving the telecom market, we are confident in our ability to capture the future growth potential around the secular trend of increasing global tower and network hub counts and the increasingly critical nature of wireless communications and services that require significantly greater power reliability.

此外，憑藉我們 40 年服務電信市場的經驗，我們有信心能夠圍繞全球塔和網路中心數量不斷增加的長期趨勢以及無線通訊和服務日益關鍵的性質，抓住未來的成長潛力。性。

Shipments of natural gas generators used in applications beyond traditional standby projects declined moderately during the quarter, as the higher interest rate environment impacted project ROIs and time lines. Longer term, we view these applications as an important opportunity for Generac, our end customers and grid operators as reliability concerns, energy prices, and market volatility, all trend higher. Additionally, we will continue to build a pipeline of multi-asset projects that utilize both our natural gas generators and our recently introduced C&I energy storage systems.

由於較高的利率環境影響了該項目的投資回報率和時間表，本季度用於傳統備用項目之外的應用的天然氣發電機的出貨量略有下降。從長遠來看，我們將這些應用視為 Generac、我們的最終客戶和電網營運商的重要機會，因為可靠性問題、能源價格和市場波動都呈現上升趨勢。此外，我們將繼續建造一系列利用我們的天然氣發電機和我們最近推出的工商業能源儲存系統的多資產項目。

While we are in the early innings of the growth opportunity, we intend to leverage our leading position in natural gas generators to drive market share gains in behind-the-meter energy storage in the coming years as our C&I customers seek to utilize energy storage for short duration outages, variable rate arbitrage, and grid service opportunities, while also leveraging our traditional generator offerings for a complete resiliency solution.

雖然我們正處於成長機會的早期階段，但我們打算利用我們在天然氣發電機領域的領先地位，在未來幾年推動用戶側儲能市場份額的成長，因為我們的工商業客戶尋求利用儲能來實現短時間停電、可變利率套利和電網服務機會，同時也利用我們的傳統發電機產品來提供完整的彈性解決方案。

We believe we are uniquely positioned to bring these solutions to market and continue to invest in the teams, technology and processes necessary to deliver comprehensive solutions for the C&I market focused on energy resilience and efficiency.

我們相信，我們擁有獨特的優勢，可以將這些解決方案推向市場，並繼續投資於必要的團隊、技術和流程，為工商業市場提供注重能源彈性和效率的全面解決方案。

Internationally, total sales were lower year-over-year primarily related to declines in intercompany shipments from our Mexican operations to the telecom market in the U.S. as well as lower shipments in certain European markets, most notably for portable generators as energy security concerns eased relative to the first quarter of 2023. Strong growth in shipments to Latin American end markets partially offset this softness. Internationally, International adjusted EBITDA margins held at 15%, consistent with the prior year period as disciplined price cost actions were offset by lower operating leverage on decreased shipment volumes.

在國際上，總銷售額年減主要與我們墨西哥業務至美國電信市場的公司間出貨量下降以及某些歐洲市場的出貨量下降有關，尤其是隨著能源安全擔憂相對緩解，便攜式發電機的出貨量下降。在國際方面，國際調整後的 EBITDA 利潤率維持在 15%，與去年同期一致，因為嚴格的價格成本行動被出貨量減少導致的營運槓桿降低所抵銷。

In closing this morning, we are encouraged by the ongoing improvement in operational execution reflected in our first quarter results as strong year-over-year performance in home standby generators and increased shipments of C&I products to our industrial distributor customers offset end market softness in other areas of our business. The return to our historically robust gross margin and cash flow generation profile, allows for additional capital allocation optionality and further strengthens our confidence in executing our powering a Smarter World Enterprise Strategy.

今天上午結束時，我們對第一季業績中反映的營運執行力的持續改善感到鼓舞，因為家庭備用發電機的同比表現強勁，以及工業分銷商客戶的工商業產品出貨量增加，抵消了其他領域終端市場的疲軟。我們恢復了歷史上強勁的毛利率和現金流生成狀況，為我們提供了額外的資本配置選擇，並進一步增強了我們執行智慧世界企業策略的信心。

Additionally, the recent acceleration in data center construction activity, driven in large part by the emergence of artificial intelligence, has further increased the growing pressure on electricity supply/demand imbalances and underscores the relevance of the mega trends that underpin our enterprise strategy. Data centers will not only directly increase industry-wide demand for backup power, but have also served to raise public awareness of the looming electrical grid supply constraints.

此外，最近資料中心建設活動的加速，在很大程度上是由人工智慧的出現所推動的，進一步增加了電力供需不平衡的壓力，並強調了支撐我們企業策略的大趨勢的相關性。資料中心不僅將直接增加全行業對備用電源的需求，而且還有助於提高大眾對迫在眉睫的電網供應限制的認識。

Accelerating demand for artificial intelligence and the deployment of energy-intensive data centers join the growing trends of electrification and the reindustrialization of North America, which is driving power consumption forecasts meaningfully higher than previously forecasted. At the same time, grid operators continue to add intermittent power generation sources and retire baseload thermal generation, while also facing extensive siting and permitting challenges as well as critical equipment shortages.

人工智慧需求的加速成長以及能源密集型資料中心的部署，加上北美電氣化和再工業化的不斷增長趨勢，推動電力消耗預測顯著高於先前的預測。同時，電網營運商繼續增加間歇性發電源並淘汰基荷火力發電，同時也面臨廣泛的選址和許可挑戰以及關鍵設備短缺。

After multiple decades of very little electrical -- growth in electrical demand, the aging power grid in the U.S. is clearly not prepared for the future trajectory of power consumption needed to satisfy these converging trends. And this is even before considering the long-term trend of increasingly frequent severe weather events that are creating additional stress on the nation's electrical grid.

在經歷了數十年電力需求成長非常緩慢之後，美國老化的電網顯然沒有為滿足這些融合趨勢所需的未來電力消耗軌跡做好準備。這甚至還沒有考慮到日益頻繁的惡劣天氣事件給國家電網帶來額外壓力的長期趨勢。

Generac's backup power portfolio, in particular, is well positioned to provide home and business owners with the continuity and resilience they demand in an increasingly electrified world. In addition, our next-generation energy technology solutions across both residential and C&I product categories will further expand on our resiliency value proposition by helping optimize for efficiency, consumption, comfort and cost.

尤其是 Generac 的備用電源產品組合，能夠為家庭和企業主提供他們在日益電氣化的世界中所需的連續性和彈性。此外，我們跨住宅和工商業產品類別的下一代能源技術解決方案將透過協助優化效率、消耗、舒適度和成本，進一步擴展我們的彈性價值主張。

We believe our broad offering of products and solutions are uniquely capable in helping home and business owners solve the challenges resulting from this accelerating energy transition.

我們相信，我們提供的廣泛產品和解決方案能夠獨特地幫助家庭和企業主解決能源轉型加速帶來的挑戰。

I'll now turn the call over to York to provide further details on our first quarter results and our updated outlook for 2024. York?

我現在將電話轉給約克，提供有關我們第一季業績和 2024 年最新展望的更多詳細資訊。

Thanks, Aaron. Looking at first quarter 2024 results in more detail. Net sales increased to $889 million during the first quarter of 2024 as compared to $888 million in the prior year first quarter. The combination of contributions from acquisitions and the favorable impact from foreign currency had an approximate 1% positive impact on revenue growth during the quarter.

謝謝，亞倫。更詳細地了解 2024 年第一季的業績。 2024 年第一季淨銷售額增至 8.89 億美元，而去年第一季淨銷售額為 8.88 億美元。收購的貢獻和外匯的有利影響相結合，對該季度的收入成長產生了約 1% 的積極影響。

Briefly looking at consolidated net sales for the first quarter by product class. Residential product sales increased 2% to $429 million as compared to $419 million in the prior year. Growth in residential product sales was primarily driven by a mid-teens increase in shipments of home standby generators. This was partially offset by a large decrease in portable generator shipments in the U.S. and Europe given a strong prior year comparison, ongoing softness in the domestic solar plus storage market and lower chore product sales.

簡要查看第一季按產品類別劃分的綜合淨銷售額。住宅產品銷售額較前一年的 4.19 億美元成長 2%，達到 4.29 億美元。住宅產品銷售的成長主要是由家用備用發電機出貨量的十幾歲左右的成長所推動的。由於與去年相比強勁，美國和歐洲的便攜式發電機出貨量大幅下降、國內太陽能加儲存市場持續疲軟以及家務產品銷售下降，部分抵消了這一影響。

Commercial & Industrial product sales for the first quarter of 2024 decreased 2% to $354 million as compared to $363 million in the prior year quarter. Foreign currency and acquisitions contributed approximately 2% growth in the quarter. The core sales decline was due to the expected weakness in sales to our domestic telecom and national equipment rental customers. This performance was largely offset by a robust increase in C&I product shipments through our domestic industrial distributor channel, and growth in certain international markets, including Latin America.

2024 年第一季商業和工業產品銷售額下降 2%，至 3.54 億美元，去年同期為 3.63 億美元。外匯和收購為本季度貢獻了約 2% 的成長。核心銷售下降是由於我們對國內電信和國家設備租賃客戶的銷售預期疲軟。這一業績在很大程度上被我們國內工業分銷商管道的工商業產品出貨量的強勁增長以及包括拉丁美洲在內的某些國際市場的增長所抵消。

Net sales for other products and services increased slightly to $106 million, including approximately 1% contribution from favorable foreign currency. Gross profit margin was 35.6% compared to 30.7% in the prior year first quarter due to a favorable sales mix, given stronger home standby shipments, improved production efficiencies, lower input costs and higher pricing as compared to the prior year. First quarter gross margins exceeded our prior expectations as a result of better-than-expected input cost realization and strong operational execution.

其他產品和服務的淨銷售額略有成長，達到 1.06 億美元，其中約 1% 的貢獻來自有利的外匯。毛利率為 35.6%，而去年第一季為 30.7%，得益於有利的銷售組合，與去年相比，家庭備用出貨量增加、生產效率提高、投入成本降低和定價提高。由於優於預期的投入成本實現和強大的營運執行力，第一季的毛利率超出了我們先前的預期。

Operating expenses increased $21 million or 9% as compared to the first quarter of 2023. This increase was primarily due to ongoing investment in our teams to drive future growth and higher marketing spend to create incremental awareness for our products. More specifically, research and development expenses grew at a rate approximately double that of our overall operating expenses, highlighting our ongoing evolution to an energy technology solutions company. Operating expenses for the quarter were in line with our prior expectations as we execute strategic initiatives to drive long-term growth.

與2023 年第一季相比，營運費用增加了2,100 萬美元，即9%。行銷支出。更具體地說，研發費用的成長速度約為我們整體營運費用的兩倍，突顯了我們正在向能源技術解決方案公司發展。由於我們執行策略性措施來推動長期成長，本季的營運費用符合我們先前的預期。

As a result of these factors, adjusted EBITDA before deducting for noncontrolling interest, as defined in our earnings release, was $127 million or 14.3% of net sales in the first quarter as compared to $100 million or 11.3% of net sales in the prior year.

由於這些因素，根據我們的收益發布中的定義，扣除非控股權益之前的調整後EBITDA 為1.27 億美元，佔第一季淨銷售額的14.3%，而上一年為1 億美元，佔淨銷售額的11.3% 。

I will now briefly discuss financial results for our 2 reporting segments. Domestic segment total sales, including intersegment sales, increased slightly to $720 million in the quarter. Adjusted EBITDA for the segment was $99 million, representing a 13.8% margin as compared to $68 million in the prior year or 9.4% of total sales. International segment total sales, including intersegment sales, decreased 14% to $187 million in the quarter as compared to $216 million in the prior year quarter.

我現在將簡要討論我們兩個報告分部的財務表現。本季國內部門總銷售額（包括部門間銷售額）小幅成長至 7.2 億美元。該部門調整後的 EBITDA 為 9,900 萬美元，利潤率為 13.8%，而前一年為 6,800 萬美元，佔總銷售額的 9.4%。本季國際部門總銷售額（包括部門間銷售額）下降 14%，至 1.87 億美元，去年同期為 2.16 億美元。

Foreign currency and acquisitions contributed approximately 4% sales growth in the quarter. The approximate 18% core total sales decline for the segment was primarily driven by declines in intercompany shipments from our Mexican operations to the domestic telecom market as well as lower shipments in certain European markets, most notably for portable generators. Adjusted EBITDA for the segment before deducting for noncontrolling interest was $28 million or 15% of total sales, as compared to $32 million or 15% of total sales in the prior year.

外匯和收購為本季銷售額成長貢獻了約 4%。該部門核心總銷售額下降約 18%，主要是由於我們墨西哥業務至國內電信市場的公司間出貨量下降以及某些歐洲市場（尤其是便攜式發電機）出貨量的下降所致。在扣除非控股權益前，該部門調整後的 EBITDA 為 2,800 萬美元，佔總銷售額的 15%，而前一年為 3,200 萬美元，佔總銷售額的 15%。

Now switching back to our financial performance for the first quarter of '24 on a consolidated basis. As disclosed in our earnings release, GAAP net income for the company in the quarter was $26 million as compared to $12 million for the first quarter of 2023. The current year period includes a $6 million noncash expense that reflects the change in the fair value of our warrants and equity securities in Wallbox, a minority investment we made in Q4 of 2023.

現在回到我們 2024 年第一季的綜合財務表現。正如我們在財報中所揭露的，該公司本季的 GAAP 淨利為 2,600 萬美元，而 2023 年第一季為 1,200 萬美元。 Wallbox 的認股權證和股本證券，這是我們在2023 年第四季進行的少數股權投資。

GAAP income taxes during the current year first quarter were $12 million or an effective tax rate of 31.2% as compared to $8 million or an effective tax rate of 35.7% for the prior year. The decrease in effective tax rate was primarily driven by higher pretax book income that reduced the impact of certain discrete tax items in the current year.

今年第一季的 GAAP 所得稅為 1,200 萬美元，有效稅率為 31.2%，而前一年的 GAAP 所得稅為 800 萬美元，有效稅率為 35.7%。有效稅率的下降主要是由於稅前帳面收入增加，減少了本年度某些離散稅項的影響。

Diluted net income per share for the company on a GAAP basis was $0.39 in the first quarter of 2024 compared to $0.05 in the prior year. The current year period included a $2.7 million redemption value adjustment that impacted our earnings per share, while the prior year period included a $9 million redemption value adjustment.

2024 年第一季度，以 GAAP 計算，公司稀釋後每股淨利為 0.39 美元，而去年同期為 0.05 美元。本年度期間包括 270 萬美元的贖回價值調整，影響了我們的每股收益，而上一年期間包括 900 萬美元的贖回價值調整。

Adjusted net income for the company, as defined in our earnings release, was $53 million in the current year quarter or $0.88 per share. This compares to adjusted net income of $39 million in the prior year or $0.63 per share. Cash flow from operations in the quarter and the current year first quarter was a positive $112 million as compared to negative $19 million in the prior year first quarter. And free cash flow, as defined in our earnings release, was positive $85 million as compared to negative $42 million in the same quarter last year.

根據我們的收益發布中的定義，該公司本季調整後淨利潤為 5,300 萬美元，即每股 0.88 美元。相比之下，上一年調整後淨利潤為 3,900 萬美元，即每股 0.63 美元。本季和今年第一季的營運現金流為正 1.12 億美元，而去年第一季為負 1,900 萬美元。根據我們的收益發布中的定義，自由現金流為正 8,500 萬美元，而去年同期為負 4,200 萬美元。

The significant improvement in free cash flow was primarily due to higher operating earnings, a reduction in primary working capital in the current year quarter, and a large onetime cash tax payment in the prior year period, which did not repeat.

自由現金流的顯著改善主要是由於營業收入的增加、本季主要營運資本的減少以及上一年期間的大量一次性現金稅款的支付，但這種情況沒有重複。

Total debt outstanding at the end of the quarter was $1.56 billion, resulting in a gross debt leverage ratio at the end of the first quarter of 2.35x on an as-reported basis, a continued reduction from the 2.5x at the end of 2023.

本季末未償債務總額為 15.6 億美元，導致第一季末的總債務槓桿率為報告的 2.35 倍，較 2023 年底的 2.5 倍持續下降。

With that, I will now provide further comments on our updated outlook for 2024. As disclosed in our press release this morning, we are maintaining our overall outlook for net sales and adjusted EBITDA margin for the full year 2024. For our top line sales outlook, we still expect overall year-over-year growth to be approximately 3% to 7%, which includes a slight favorable impact from acquisitions and foreign currency. However, we now expect a slightly lower mix of residential products and a slightly higher mix of C&I products compared to our previous expectations.

現在，我將就我們更新的2024 年展望提供進一步的評論。營收展望，我們仍預期整體年增約 3% 至 7%，其中包括收購和外匯帶來的輕微有利影響。然而，與我們先前的預期相比，我們現在預計住宅產品的組合將略低，工商業產品的組合將略高。

As Aaron previously mentioned, we are not changing our outlook for home standby generator shipments for the full year. As field inventory for home standby generators normalizes and we start shipping in line with the end market, we continue to expect a significant year-over-year increase in home standby generator shipments. However, other residential products are facing softer end market conditions than previously anticipated. As a result of lower expectations for global portable generator shipments, continued softness in domestic energy storage and EV markets and weakness in short product sales, we now expect the full year growth rate for residential product sales to be in the low double-digit range as compared to the mid-teens growth rate previously projected.

正如亞倫之前提到的，我們不會改變全年家用備用發電機出貨量的前景。隨著家用備用發電機的現場庫存正常化，並且我們開始根據終端市場發貨，我們繼續預計家用備用發電機的出貨量將比去年同期大幅成長。然而，其他住宅產品面臨的終端市場狀況比先前預期的要疲軟。由於全球便攜式發電機出貨量預期較低、國內儲能和電動車市場持續疲軟以及短缺產品銷售疲軟，我們目前預計住宅產品全年銷售成長率將在較低的兩位數範圍內與先前預測的十幾歲左右的增長率相比。

Offsetting this incremental softness in residential end markets, we now anticipate C&I product sales to be higher than previously expected resulting in a mid- to high single-digit rate decrease versus prior year as compared to our prior guidance for an approximate 10% decline. This improved outlook is primarily driven by the higher-than-expected shipments to our domestic industrial distributor customers in the first quarter. Specifically for the second quarter, we expect overall net sales to be nearly flat as compared to the prior year period, with growth rates anticipated to accelerate in the second half of the year.

我們現在預期工商業產品銷售額將高於先前的預期，從而抵消住宅終端市場的這種增量疲軟，導致與去年相比出現中高個位數的下降，而我們先前的指導則下降了約10% 。這一前景的改善主要是由於第一季國內工業分銷商客戶的出貨量高於預期。具體到第二季度，我們預計整體淨銷售額將與去年同期基本持平，預計下半年成長率將加快。

Importantly, this guidance assumes a level of power outage activity during the remainder of the year that is in line with the longer-term baseline average. Consistent with our historical approach, this outlook does not assume the benefit of a major power outage event which could add $50 million to $100 million in additional shipments during the year.

重要的是，本指南假設今年剩餘時間內的停電活動水準與長期基線平均值一致。與我們的歷史方法一致，這項展望並未假設重大停電事件的好處，該事件可能會在一年內增加 5,000 萬至 1 億美元的額外出貨量。

Our gross margin expectations for the full year 2024 are now modestly higher than previous guidance given the Q1 outperformance. We now expect gross margins to improve by approximately 300 to 350 basis points over the full year 2023, an increase from the 300 basis point improvement previously expected. Gross margins are projected to increase sequentially throughout the year with second half 2024 gross margins now growing by approximately 200 basis points over the first half 2024 gross margins, given favorable mix, price and cost impacts.

鑑於第一季的優異表現，我們對 2024 年全年毛利率的預期目前略高於先前的指引。我們目前預計 2023 年全年毛利率將提高約 300 至 350 個基點，高於先前預期的 300 個基點。鑑於有利的組合、價格和成本影響，預計全年毛利率將持續成長，2024 年下半年的毛利率目前將比 2024 年上半年的毛利率增加約 200 個基點。

Adjusted EBITDA margins before deducting for noncontrolling interests are still expected to be approximately 16.5% to 17.5% for the full year. This guidance assumes that the better-than-expected gross margins previously discussed will be mostly offset by modestly higher-than-expected operating expenses to help support enterprise-wide strategic initiatives. As a result, we now expect second half adjusted EBITDA margins to be approximately 450 basis points higher than first half EBITDA margins, driven by the combination of gross margin expansion and operating leverage on higher sales volumes in the second half of the year. This compares to the previous expectation of nearly 600 basis points of EBITDA margin improvement from the first half to the second half of the year.

扣除非控制權益前的調整後 EBITDA 利潤率預計全年仍約為 16.5% 至 17.5%。本指引假設先前討論的優於預期的毛利率將大部分被略高於預期的營運費用所抵消，以幫助支持企業範圍內的策略性舉措。因此，我們現在預計下半年調整後的 EBITDA 利潤率將比上半年的 EBITDA 利潤率高出約 450 個基點，這主要是受到毛利率擴張和下半年銷售增加帶來的營運槓桿的推動。相較之下，此前預計上半年至下半年 EBITDA 利潤率將提高近 600 個基點。

As is our normal practice, we will also -- we are also providing updated guidance details to assist with modeling adjusted earnings per share and free cash flow for the full year 2024. For the full year, our GAAP effective tax rate is still expected to be approximately 25% to 26% as compared to the 25.2% full year GAAP tax rate for 2023. This is expected to result in a GAAP effective tax rate of approximately 25% in each of the remaining 3 quarters of the year. Importantly, to arrive at appropriate estimates for adjusted net income and adjusted earnings per share, add-back items should be reflected net of tax using our expected effective tax rate.

按照我們的正常做法，我們還將提供更新的指導細節，以協助對 2024 年全年調整後每股收益和自由現金流進行建模。 25.2% 的全年GAAP 稅率相比，該稅率約為25% 至26%。重要的是，為了對調整後淨利和調整後每股盈餘做出適當的估計，回加項目應使用我們預期的有效稅率來反映稅後淨額。

Interest expense is now expected to be approximately $90 million to $93 million as compared to prior guidance of approximately $85 million to $90 million due to an increase in interest rate expectations for the remainder of the year. This guidance assumes no additional term loan or revolver principal prepayments during the year. Our capital expenditures are still projected to be approximately 3% of our forecasted net sales for the year.

由於今年剩餘時間的利率預期增加，利息支出預計約為 9,000 萬至 9,300 萬美元，而先前的指導約為 8,500 萬至 9,000 萬美元。本指南假設年內沒有額外的定期貸款或循環本金預付款。我們的資本支出預計仍占我們今年預測淨銷售額的 3% 左右。

Our overall cash flow generation guidance remains unchanged. Operating and free cash flow generation is still expected to follow historical seasonality of being disproportionately weighted towards the second half of the year in 2024. For the full year, we continue to expect adjusted net income to free cash flow conversion to be strong at approximately 100% as we continue to monetize working capital build of prior years. Depreciation expense, GAAP intangible amortization expense, stock compensation expense and diluted share count expectations also remain consistent with last quarter's guidance.

我們的整體現金流產生指引維持不變。預計營運和自由現金流的產生仍將遵循歷史季節性，即 2024 年下半年的權重不成比例。 %，因為我們繼續將前幾年的營運資金建構貨幣化。折舊費用、公認會計原則無形攤銷費用、股票補償費用和稀釋後股數預期也與上季度的指導保持一致。

Finally, this 2024 outlook does not reflect potential additional acquisitions or share repurchases that could drive incremental shareholder value.

最後，2024 年的展望並未反映出可能增加股東價值的潛在額外收購或股票回購。

This concludes our prepared remarks. At this time, we'd like to open up the call for questions.

我們準備好的演講到此結束。此時，我們想開放提問。

(Operator Instructions) And our first question comes from the line of Tommy Moll from Stephens Inc.

（操作員說明）我們的第一個問題來自 Stephens Inc. 的 Tommy Moll。

Aaron, starting off on home standby, wanted to see if you could reconcile for us. I think I heard you say shipments are up mid-teens year-over-year, activations are down year-over-year. Can you just help us understand the two of those in context?

亞倫開始在家待命，想看看你是否能為我們和解。我想我聽到你說出貨量同比增長了十幾歲，激活量同比下降。您能幫我們理解這兩個字的背景嗎？

Yes. So it's a great question, Tommy. I mean activations have been a little slower this year relative to -- if you look at the outage environment most recently in the last couple of quarters, that outage environment has been weaker than kind of the trend over the last, I would say, a couple of years. So Q1 was actually in line with the long-term average since we've been tracking outages. But again, you look kind of trend-wise, it was a quiet relatively quiet quarters. You get past January, things really slowed down in February and March. And then Q4, as we discussed previously, was a really light quarter relative to kind of historical trends. So...

是的。所以這是一個很好的問題，湯米。我的意思是，今年的啟動速度相對較慢一些——如果你看看最近幾季的停電環境，你會發現，停電環境比過去的趨勢要弱，我想說，許多年。因此，自從我們一直在追蹤中斷以來，第一季實際上與長期平均一致。但同樣，你看起來有點趨勢明智，這是一個相對安靜的季度。一月過去了，二月和三月事情確實放緩了。然後，正如我們之前討論的那樣，相對於歷史趨勢來說，第四季度是一個非常淡的季度。所以...

And Q1 over the last year...

去年第一季.....

Yes, Q1 last year was -- '23 was really strong for Q1. So kind of a tough comp that way. So activations were a little bit down. But yes, shipments are up because, again, the field inventory headwind is largely gone now, right? So we exited the quarter and really kind of February, March run rates, activations and shipments were in line with each other. So we think that's a really good sign that we're kind of at a point of stasis with field inventories in terms of them returning to normal, which has been the primary headwind here. So as that abates, that helps us in terms of comping more strongly on shipments, but yet the activation has been a little bit softer as a result, I think, of the most recent outage periods.

是的，去年第一季是——'23 對於第一季來說確實很強勁。這樣的比賽非常艱難。因此激活率略有下降。但是，是的，出貨量上升是因為，現場庫存的逆風現在基本上已經消失了，對嗎？因此，我們結束了本季度，二月、三月的運行率、激活量和發貨量確實是一致的。因此，我們認為這是一個非常好的跡象，表明我們在現場庫存恢復正常方面處於停滯狀態，這是這裡的主要阻力。因此，隨著這種情況的減弱，這有助於我們在出貨量方面更有競爭力，但我認為，由於最近的停電期，啟動速度有點軟。

The field inventory drag was a bigger drag last year than it was this year's...

去年現場庫存的拖累比今年的拖累更大…

Exactly.

確切地。

Quarter, and that allowed for the year-over-year increase in shipments.

季度，這使得出貨量同比增長。

Exactly.

確切地。

And our next question comes from the line of George Gianarikas from Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 George Gianarikas。

I was wondering, you talked about the tangential impacts of the surge and data center power demand. I was wondering if you could discuss maybe a little bit more in detail your strategy there? And any incremental you've seen direct demand directly from the needs of AI data centers?

我想知道，您談到了激增和資料中心電力需求的切向影響。我想知道您是否可以更詳細地討論一下您的策略？您是否看到任何直接來自人工智慧資料中心需求的增量？

Yes. Thanks, George. So our product range is typically underneath the range of products that are being used for -- purely for backup for the data center market. And that's a market that, they use very large blocks of power, and that's dominated on a direct basis by the large diesel engine manufacturers that are out there. There's a handful of them in the world, and they sell all the major data centers on a direct basis.

是的。謝謝，喬治。因此，我們的產品範圍通常低於純粹用於資料中心市場備份的產品範圍。這是一個使用大量電力的市場，並且由大型柴油引擎製造商直接主導。世界上這樣的公司屈指可數，他們直接銷售所有主要的資料中心。

So we don't have a product like that, and we don't have any plans to develop an engine range. Those are engines that get used in tug boats and mine haul trucks and trains and things like that. So much different applications than what you'd see just outside of power generation.

所以我們沒有這樣的產品，我們也沒有任何開發引擎系列的計畫。這些發動機用於拖船、礦用卡車、火車等。其應用與您在發電領域之外看到的應用有很大不同。

That said, we do serve some of the edge data centers where the power needs for backup are not as great. And we also have seen some opportunities come across relative to natural gas backup. So today, the backup generator market for data centers is almost entirely diesel, again, driven by these large diesel engine players. But we are seeing issues around siting and permitting with certain large concentrations of diesel engines.

也就是說，我們確實為一些備份電力需求不太大的邊緣資料中心提供服務。我們也看到了一些與天然氣備用相關的機會。因此，如今，資料中心的備用發電機市場幾乎完全是柴油機，同樣是由這些大型柴油引擎製造商所推動的。但我們發現某些大規模集中柴油引擎的選址和許可方面存在問題。

So in Virginia, as an example. There's some high-profile areas where permitting has been challenging to obtain for the kinds of -- the raw numbers of diesel engines that have to be cited and permitted to operate for backup. So some of these data center EPCs and owners have turned to natural gas as a potential option.

以維吉尼亞州為例。在一些引人注目的領域，獲得許可一直是一項挑戰——必須引用並允許運行備用柴油引擎的原始數量。因此，一些資料中心 EPC 和業主已將天然氣作為潛在選擇。

Now the blocks of power are smaller because natural gas doesn't have the density in terms of energy, as you see in diesel fuel. But nonetheless, the emissions are quite a bit cleaner, the emissions profile of those products. So that could be a potential opportunity. We continue to grow our natural gas generator line in terms of total output for those products. So we think there could be opportunities, but we think they're primarily going to be smaller edge data centers.

現在，電力塊變小了，因為天然氣沒有像柴油那樣的能量密度。但儘管如此，這些產品的排放情況要清潔得多。所以這可能是個潛在的機會。我們持續擴大天然氣發電機系列產品的總產量。因此，我們認為可能存在機會，但我們認為它們主要是較小的邊緣資料中心。

Probably the bigger opportunity, George, is indirectly, right? The amount of data centers that are going to be coming online here between now and 2030, so call it, 5, 6 years. It's estimated that the amount of power that will be drawn from those data centers will triple from the current levels that we're at today. It's almost the equivalent like, if you step back, if we get to 2030, and if that happens, it's the equivalent of adding 40 million households to the grid. So we just process that for a second. I mean, in terms of just the raw number of -- the raw increase in demand that's going to come from these data centers in a very short period of time.

也許更大的機會，喬治，是間接的，對吧？從現在到 2030 年，也就是 5、6 年期間，將有大量資料中心上線。據估計，這些資料中心的耗電量將是目前水準的三倍。這幾乎相當於，如果退一步，如果我們到了 2030 年，如果發生這種情況，就相當於在電網中增加了 4000 萬個家庭。所以我們只處理一下。我的意思是，就原始數量而言——在很短的時間內來自這些數據中心的原始需求增長。

And for those of you who have been around the utility industry or even the energy industry for any length of time, you know that it's really challenging for grid operators and utilities to react quickly because there's a process involved, right, for, again, citing and permitting of new plants, the approval process through different regulatory bodies. And then, of course, what are you going to -- what is the generating capacity you're going to add? Most likely today, it's going to be intermittent, right? It's going to be solar or wind at a utility scale.

對於那些在公用事業行業甚至能源行業工作了很長時間的人來說，您知道電網運營商和公用事業公司快速做出反應確實具有挑戰性，因為涉及一個過程，對，再次引用新工廠的許可、不同監理機關的審批流程。然後，當然，你要做什麼——你要增加多少發電能力？今天很可能會斷斷續續，對嗎？公用事業規模將是太陽能或風能。

You can do that cost effectively to get to the nameplate rating of a thermal plant. But unfortunately, those are intermittent sources. So you need to have a different strategy with how you're going to operate on a 24/7 basis. So you either need to add storage of some sort, which is quite a bit more expensive, obviously, and that would obviously have to be passed along to rate payers or you've got to come up with a different approach, virtual power plants, other grid services type programs to help offload demand during peak times or to augment supply during those peak times with distributed assets that might be out there and available on the grid.

您可以經濟有效地做到這一點，以獲得熱電廠的銘牌評級。但不幸的是，這些都是間歇性的來源。因此，您需要針對如何 24/7 全天候營運制定不同的策略。因此，您要么需要添加某種存儲，這顯然要昂貴得多，並且顯然必須轉嫁給納稅人，要么您必須想出一種不同的方法，虛擬發電廠，其他網格服務類型計劃可幫助緩解高峰時段的需求，或利用可能存在於電網上的分散式資產來增加高峰時段的供應。

We're definitely seeing much greater interest with grid operators and utilities in these types of conversations and programs. But again, many times, they're bespoke. They're highly customized and there's complicated processes to get to get these programs up and running. And so it's just going to take time. And data centers and the data center operators are not going to wait. The opportunity with AI is just -- it's far too great, and it's coming at us very, very quickly.

我們確實看到電網營運商和公用事業公司對此類對話和計劃表現出更大的興趣。但很多時候，它們都是客製化的。它們是高度客製化的，並且需要複雜的過程來啟動和運行這些程式。所以需要時間。資料中心和資料中心營運商不會等待。人工智慧的機會實在太大了，而且它正在以非常非常快的速度向我們襲來。

So we think that structurally, what that's going to result in just on a net basis is reduced quality of power. And I just don't think that, we even have a remote inkling of what's going to happen over the next 5 to 10 years in terms of power quality. It's clear to me that what we're going to see here in the future is a critical degradation of power and shortages. These are not weather-driven outages, although those will happen because the grid is -- continue to be susceptible to weather.

因此，我們認為，從結構上看，這將導致電力品質下降。我只是不認為，我們甚至對未來 5 到 10 年電能品質將發生的情況有一點了解。我很清楚，未來我們將看到電力嚴重退化和短缺。這些並不是天氣導致的停電，儘管這些停電將會發生，因為電網仍然容易受到天氣的影響。

But it's really the supply-demand imbalance that's going to continue to grow. As on the supply side, we're dealing with replacing traditional 24/7 thermal assets like coal and gas, with intermittent assets like wind and solar. And then on the demand side, we're racing to electrify everything, and we're adding all of this additional load profile from data centers. So it's just not a great setup for power quality in the years ahead.

但實際上供需失衡將會持續加劇。在供應方面，我們正在考慮用風能和太陽能等間歇性資產取代煤炭和天然氣等傳統的 24/7 熱資產。然後在需求方面，我們正在競相實現一切電氣化，並且我們正在從資料中心添加所有這些額外的負載設定檔。因此，這對於未來幾年的電能品質來說並不是一個很好的設定。

And our next question comes from the line of Mike Halloran from Baird.

我們的下一個問題來自貝爾德 (Baird) 的 Mike Halloran。

So just digging a little deeper on the C&I side of things. It sounds like a pretty similar outlook for the rental and telecom channels. Maybe talk to 2 things here. One, how you're thinking about the seasonality for the businesses in the areas where the outlook has improved? And then also the confidence in the sustainability of the run rate. And so more of the distribution side, some of the other areas? And any kind of evidence you would point to for the sustainability piece and why you think that might have some nice legs here relative to what you were thinking a couple of months back?

因此，只需更深入地研究 C&I 方面的問題即可。租賃和電信通路的前景聽起來非常相似。也許在這裡談談兩件事。第一，您如何看待前景改善的地區企業的季節性？然後還有對運行率可持續性的信心。還有更多的分銷方面，還有其他一些領域嗎？您會為永續性文章指出任何類型的證據，以及為什麼您認為與您幾個月前的想法相比，這可能會有一些不錯的表現？

Yes. Thanks, Mike. So our C&I business has continued to perform quite well in the face of -- as you noted and as we've been noting for quite some time now, in the slowdown, the cyclical slowdown that we're experiencing in the rental markets as well as the telecom markets, which, again, guidance for rental and telecom are largely unchanged for the year. Really, the change has come from our industrial distribution channel, which is, again, they're serving businesses. They're serving the infrastructure like wastewater treatment plants and school districts and other types of applications, a very wide range of applications, health care, manufacturing plants, even data centers, as I mentioned before, data and telco, outside of the strict telecom market that we talk about oftentimes on a direct basis.

是的。謝謝，麥克。因此，正如您所指出的，正如我們在相當長一段時間以來所注意到的那樣，面對租賃市場同樣經歷的經濟放緩和周期性放緩，我們的工商業業務仍然表現良好。 ，今年的租賃和電信指導基本上沒有變化。事實上，這種變化來自我們的工業分銷管道，也就是說，他們正在為企業服務。他們為廢水處理廠和學區等基礎設施以及其他類型的應用程式提供服務，範圍非常廣泛的應用程序，醫療保健，製造工廠，甚至數據中心，正如我之前提到的，數據和電信，除了嚴格的電信以外我們經常直接談論的市場。

But that industrial distributor channel for us has been a growing channel for really the greater part of the last decade. We've invested heavily in it. We've done some acquisitions along the way where we've been able to attack some of the markets where we felt we were underrepresented from a market share standpoint around the U.S. We've infilled that with owned distribution, if you will. And that has -- that playbook has worked out quite well for us. And we've been able to pick up share is really kind of flat out, the answer.

但在過去十年的大部分時間裡，我們的工業分銷商通路一直在不斷增長。我們對此投入了大量資金。在這個過程中，我們進行了一些收購，我們能夠攻擊一些我們認為從美國市場份額的角度來看我們代表性不足的市場。那本劇本對我們來說效果很好。我們已經能夠獲得份額，這確實是一個明確的答案。

So it's coming in stronger. It's been very resilient, right? We haven't necessarily seen the breakdown there. I think that's representative of the broader power quality discussions that we've been having here and have had for some time, right? Whether you're talking about the supply demand imbalance that I just prattle on about or just the continued challenges with reliable supply and also just the deeper electrification within businesses, right? I mean businesses today without power, you just -- you can't operate.

所以它會變得更強。它非常有彈性，對吧？我們不一定看到那裡的崩潰。我認為這代表了我們已經在這裡進行了一段時間的更廣泛的電能品質討論，對吧？無論您是在談論我剛才喋喋不休的供需不平衡，還是可靠供應所面臨的持續挑戰，以及企業內部更深層的電氣化，對吧？我的意思是，當今的企業如果沒有電力，就無法運作。

And we used to point to certain markets or certain applications that were "critical" for backup power. I would say almost every business today would say they critically rely on a continuous source of power. So without that, whether it's inventory spoilage or whether that's an interruption of revenues, significant disruption to their businesses exist when you get these outages, and outages over time have been on the rise. And I think you're just seeing that manifest itself in a broader penetration rate for backup power in these buildings that represent the C&I market in North America.

我們曾經指出某些市場或某些應用對於備用電源「至關重要」。我想說，今天幾乎每個企業都會說他們嚴重依賴持續的電力來源。因此，如果沒有這一點，無論是庫存損壞還是收入中斷，當發生這些停電時，都會對他們的業務造成重大干擾，而且隨著時間的推移，停電情況會不斷增加。我認為您剛剛看到了這一點，這體現在代表北美工商業市場的這些建築物中備用電源的更廣泛滲透率。

And we've been very pleased with the resiliency there. And so that's largely offsetting the weakness -- the cyclical weakness that we were forecasting here for rental and telecom. And we're saying, hey, look, we like the trends for that industrial distributor channel continue to be pretty solid...

我們對那裡的彈性非常滿意。因此，這在很大程度上抵消了疲軟——我們在此預測的租賃和電信行業的周期性疲軟。我們說，嘿，看，我們喜歡工業分銷管道的趨勢繼續相當穩固...

Quoting is hanging in there...

引用掛在那裡...

Quoting is hanging in there. The quote-to-sale conversion process has continued to hang in there. And we continue to invest in it. And I think all of those things when you line them up are really what are helping us offset the broader weakness in those other markets.

引用掛在那裡。報價到銷售的轉換過程繼續存在。我們繼續對此進行投資。我認為，所有這些事情，當你把它們排列起來時，確實可以幫助我們抵消其他市場的更廣泛的疲軟。

And our next question comes from the line of Jeff Hammond from KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Jeff Hammond。

So just back on residential One, maybe just speak to destocking and whether you think it's done, if not how much left? And then it just seems like IHC activation trends were kind of still pretty weak. And so just want to come back to like, I know it was kind of in line in the quarter, but what gives you confidence, an unchanged view and kind of the ramp into the second half outside of just seasonality?

那麼，回到住宅一號，也許只是談談去庫存，以及您是否認為已經完成，如果沒有，還剩下多少？然後，IHC 活化趨勢似乎仍然相當疲軟。所以我想回想一下，我知道這在本季度是一致的，但是什麼給了你信心、不變的觀點以及在季節性之外進入下半年的動力？

Yes. Yes. Thanks, Jeff. So yes, from a destocking perspective, again, we exited the quarter, February and March, activations and shipments were pretty much in line. So we felt like -- and again, based on all the data we have and based on the extended period here of destocking that we've been experiencing really since the third quarter of 2022, we feel like we're finally through that. And so that's in line with our prior expectations. And that largely is behind, I think, the -- again, as we -- as I mentioned previously, the ability to kind of post those mid-teens increases year-over-year in home standby shipments. So we don't have that field inventory headwind now that that's primarily gone.

是的。是的。謝謝，傑夫。所以，是的，從去庫存的角度來看，我們再次退出了本季度，二月和三月，激活和發貨量幾乎一致。因此，我們再次感到，根據我們掌握的所有數據，以及自 2022 年第三季以來我們一直在經歷的長期去庫存，我們覺得我們終於度過了這個時期。這符合我們之前的預期。我認為，這很大程度上是因為——再次，正如我們——正如我之前提到的，家庭備用出貨量同比增長的能力。因此，現在我們已經不再面臨現場庫存的不利因素了。

In terms of the weaker trends recently here, activations in IHCs, maybe a little bit underneath what we were anticipating, but not dramatically off the pace. So we feel pretty good about seasonally -- frankly, January was a solid month with outages, February, March, not so good. In fact, they were -- February and March were really quiet. April, on the other hand, came back strong. And so you kind of get into the seasonal time frame here for these types of products, and we're seeing the kinds of upticks that you would expect to see in these key metrics that we track, both leading and lagging indicators. So we feel pretty good about that guide and hanging on to that guide for the year.

就最近較弱的趨勢而言，IHC 的活化可能略低於我們的預期，但並沒有大幅落後。所以我們對季節性的感覺非常好——坦白說，一月是一個穩定的月份，有停電，二月、三月則不太好。事實上，二月和三月真的很安靜。另一方面，四月強勢回歸。因此，您在這裡進入了這些類型產品的季節性時間範圍，我們看到了您期望在我們追蹤的這些關鍵指標中看到的各種上升，包括領先指標和滯後指標。因此，我們對該指南感覺非常好，並在今年繼續使用該指南。

I think that, again, we've said this that the category itself is less sensitive to some of the interest rate movements and things that you might see in other typical, what you might call, consumer discretionary types of categories. Power outages create, I think, a different -- they elicit a different response, right? I mean it's just -- it's an emotional category a lot of times. Also the demographic that's traditionally buying these products. These are -- they skew older. It's older Americans with their homeowners, the aging in place trends that we've talked about previously are very much intact.

我認為，我們已經說過，該類別本身對某些利率變動以及您可能在其他典型的（您可能稱之為非必需消費品類型）類別中看到的情況不太敏感。我認為，停電會產生不同的反應——它們會引起不同的反應，對嗎？我的意思是，很多時候這是一個情感類別。還有傳統上購買這些產品的人。這些是——它們偏老。這是美國老年人和他們的房主，我們之前討論過的就地老化趨勢仍然完好無損。

And I think that these are homeowners that are just less sensitive to movements in interest rates. It doesn't mean around the edges that we won't see decreases, market demand decreases. And I think that's largely played out here in the back half of last year. I mean interest rates have been high now for a while. It's not -- this isn't a new phenomenon. So I think whatever impact that higher interest rates may have had on the margins, on the edges of the market, we think that's largely baked in at this point.

我認為這些房主對利率變動不太敏感。這並不意味著我們不會看到下降，市場需求會下降。我認為這主要是在去年下半年發生的。我的意思是利率已經高了一段時間了。這不是——這不是一個新現象。因此，我認為，無論利率上升可能對利潤率、市場邊緣產生什麼影響，我們認為這在很大程度上已經解決。

I do think that, again, just thinking forward, to the balance of the year, I'll just also point out that the Colorado State University, hurricane forecast was, I think it was -- what was it? The most active, York, forecast ever?

我確實認為，再次思考，到今年餘下的時間，我還要指出，科羅拉多州立大學的颶風預報是，我認為是——那是什麼？約克，有史以來最活躍的預測？

Ever.

曾經。

So I mean we don't...

所以我的意思是我們不要...

Preseason forecast.

季前賽預測。

Personally, we don't tend to put a lot of stock in those forecasts because they -- I have a hard time believing that if you can't tell me what the weather is going to be next Saturday, how can you tell me what it's going to be in September. But again, I think we're looking at longer-term trends around air temperatures, water temperatures, the relaxing of the El Nino events. I think those are things that are important to how forecasters think about the long-term, the bigger cycles around things like hurricanes. So that's coming as well.

就我個人而言，我們並不傾向於對這些預測抱有太多信心，因為它們——我很難相信，如果你不能告訴我下週六的天氣如何，你怎麼能告訴我什麼？是九月。但我再次強調，我們正在關注氣溫、水溫、厄爾尼諾現象的緩和情況的長期趨勢。我認為這些對於預測者如何看待颶風等長期、更大的週期非常重要。所以這也即將到來。

But our guidance assumes baseline outage activity, doesn't assume any majors.

但我們的指南假設基線中斷活動，不假設任何專業。

Yes.

是的。

And I think it's important also to mention like the category is seasonal. So second half is always stronger than the first half.

我認為同樣重要的是要提到該類別是季節性的。所以下半場總是比上半場強。

Definitely.

確實。

You would -- if you're assuming baseline level of outage activity, you would expect a nice sequential increase from first half to second half in that home standby business to support our guidance.

如果您假設停電活動處於基準水平，您會預期家庭備用業務從上半年到下半年會出現良好的連續成長，以支持我們的指導。

And our next question comes from the line of Brian Drab from William Blair.

我們的下一個問題來自威廉布萊爾的布萊恩德拉布 (Brian Drab)。

I was wondering if we could just focus in on energy technology for a minute. And I'm looking at the slide from the investor event last year and about 40% of the incremental revenue between 2023 and 2026 and the bridge here is from incremental revenue from energy technology, and C&I, and residential. Can you just give us an update on how you feel about capturing that $700 million incremental revenue? And what's the updated outlook, C&I and resi?

我想知道我們是否可以集中討論一下能源技術。我看的是去年投資者活動的幻燈片，2023 年至 2026 年間約 40% 的增量收入來自能源科技、工商業和住宅的增量收入。您能否向我們介紹一下您對於獲得這 7 億美元增量收入的最新感受？最新的展望、C&I 和 Resi 是什麼？

Yes. Thanks, Brian. So I mean, obviously, we gave those guidance points last fall. And we're not in a position today to update the next couple of years. But I -- we can talk specifically to Energy Tech and how we're thinking about that. Obviously, the market for solar plus storage, the market for EV charging, the market for some of the products that are within that complex. I would say are weaker today. The near-term market dynamics are clearly more negative coming off of, the pull ahead from NEM 3.0 in California and then just higher interest rates. I think the impact of that's having on those markets and the demand for those products. So that's the negative news.

是的。謝謝，布萊恩。所以我的意思是，顯然我們在去年秋天就給了這些指導點。今天我們無法更新未來幾年的情況。但我——我們可以專門與能源技術公司討論我們是如何考慮這個問題的。顯然，太陽能加儲存市場、電動車充電市場以及該綜合體中的一些產品的市場。我想說今天比較弱。近期市場動態顯然更加負面，原因是加州 NEM 3.0 的推動以及利率的上升。我認為這對這些市場和對這些產品的需求產生了影響。這就是負面消息。

The good news is we're still out in the market with our new products. We're on target for our launch plans later this year. And I think we're optimistic that as we turn the corner into 2025, look, interest rates are not going to remain high forever. And so I think -- and the NEM 3.0 pull ahead, pull in, I think it's pretty well documented that, that seems like the market is finally kind of emptying itself of some of the inventory challenges that the OEMs that are providers to that market today have experienced here over the last several quarters. I think that's starting to abate.

好消息是我們的新產品仍在市場上。我們的目標是今年稍後的發布計劃。我認為我們樂觀地認為，當我們進入 2025 年時，利率不會永遠保持在高位。所以我認為，NEM 3.0 領先，我認為有充分的證據表明，市場似乎終於清空了作為該市場供應商的原始設備製造商所面臨的一些庫存挑戰今天在這裡經歷了過去幾個季度。我認為這種情況開始減弱。

I think it's perfect timing by the time we get into the market, I think the market is going to be where we need it to be so that we can start to see success. So I wouldn't say we're in a position today to think differently, other than near term, right? And so near term, this year, we're probably going to be a little bit on the low end of our range. Again, it's not a big part of our business today. So a small move, and that's part of the residential, the other residential products being softer that we talked about in our prepared remarks. Some of that is the solar plus storage and EV charging just being probably a little bit more muted here in terms of market demand in the short term.

我認為我們進入市場的時機是完美的，我認為市場將達到我們需要的水平，這樣我們就可以開始看到成功。所以我不會說我們今天能夠以不同的方式思考，除了短期之外，對嗎？因此，從短期來看，今年我們可能會處於我們範圍的低端。再說一遍，這並不是我們今天業務的重要組成部分。所以這是一個小舉動，這是住宅產品的一部分，我們在準備好的演講中談到的其他住宅產品更加疲軟。其中一些原因是，就短期市場需求而言，太陽能加儲存和電動車充電可能會更加溫和。

But again, if you're talking about over the next -- through 2026, for the next 2 or 3 years, we're just -- we don't think that that's probably going to change dramatically because I think the market is going to come back by the time we're in a position to participate in that.

但同樣，如果你談論的是未來——到 2026 年，未來 2 到 3 年，我們認為這可能不會發生巨大變化，因為我認為市場正在發展當我們能夠參與其中時回來。

And our next question comes from the line of Jerry Revich from Goldman Sachs.

我們的下一個問題來自高盛的傑瑞·雷維奇（Jerry Revich）。

Aaron, can you just expand on your comments around gross margins in the quarter? We were pleasantly surprised. It sounds like the cost came in better than you expected as well. So what's the magnitude of improvement that you're seeing from supply chain normalization and going back to normal efficiency levels, freight normalization? And to what extent can that continue? Can you flesh out that part of the gross margin performance in the quarter and opportunity from it?

亞倫，您能否詳細說明您對本季毛利率的評論？我們感到驚喜。聽起來成本也比你預期的還要好。那麼，您從供應鏈正常化和回到正常效率水準以及貨運正常化中看到的改進幅度有多大？這種情況能持續到什麼程度？您能否具體說明本季的毛利率表現以及從中帶來的機會？

Yes. Absolutely, yes. No, we were pleased with the gross margin performance that did beat expectation. It was well over 1% increase there versus expectation. And the reality is we guided that input costs would improve throughout the year in 2024. The reality is we just saw the realization of that improvement sooner than we expected here in Q1. So that's great. So the fact that, that came in ahead of sooner than expected. So we got to beat in Q1. And then I guess what that does is just derisks that assumption in the second half, that gross margin improvement that we expect in -- from first half to second half, we're seeing it now. So it derisks that assumption. So that's what's going on behind the gross margin beat.

是的。絕對沒錯。不，我們對超出預期的毛利率表現感到滿意。與預期相比，增幅遠超 1%。事實上，我們預計 2024 年全年投入成本將有所改善。那太好了。事實上，這比預期提前了。所以我們必須在第一季擊敗。然後我想這只是消除了下半年的假設，即我們預期的毛利率改善——從上半年到下半年，我們現在看到了這一點。因此它消除了這種假設的風險。這就是毛利率上漲背後的原因。

And our next question comes from the line of Stephen Gengaro from Stifel.

我們的下一個問題來自 Stifel 的 Stephen Gengaro。

So my question, I guess, it's two parts. And one is, has there been any change to the competitive landscape given that I think your biggest competitor has kind of been taken private? And then maybe if you can kind of blend into that answer, just sort of the margin mix question. I imagined the strength in home standby relative to other residential products is a margin positive for the balance of this year? And any way to sort of quantify or think about that?

所以我想我的問題分成兩個部分。一是，鑑於我認為你們最大的競爭對手已經被私有化，競爭格局是否發生了任何變化？然後也許你可以將利潤混合問題融入這個答案中。我想像家庭待機相對於其他住宅產品的實力對今年的餘額是正面的利潤？有什麼方法可以量化或思考這一點嗎？

Yes. I mean, definitely, that is the case, right? I mean the margin profile of the standby products for residential is greater than every product we offer here in the company, frankly. So it's a very strong margin product for us. And so the margin mix to that point would be favorable.

是的。我的意思是，絕對是這樣，對吧？坦白說，我的意思是住宅備用產品的利潤率高於我們公司提供的所有產品。所以這對我們來說是一個利潤率非常高的產品。因此，到那時的利潤率組合將是有利的。

I mean gross margins were up 5% year-over-year in Q1. I'd say half of that was a better mix as home standby grew mid-teens.

我的意思是第一季的毛利率年增了 5%。我想說，隨著家庭待機時間增長到十幾歲，其中一半是更好的組合。

Yes. So that's played out. In terms of the competitive landscape, yes, there have been -- there's a couple of kind of developments in the competitive landscape. As you mentioned, one of our competitors here was -- is in the process, I think, of being taken private. They haven't -- are being taken through private equity, and we're a private company already but being acquired by private equity as a carve-out of the bigger enterprise there. We don't believe that's closed yet or haven't been told it's been a closed transaction yet. But, I mean it's interesting to see how it plays out. I mean, take private like that with kind of the -- there's a debt load.

是的。這樣就玩完了。就競爭格局而言，是的，競爭格局出現了幾種發展。正如您所提到的，我認為我們的競爭對手之一正在被私有化。他們還沒有——正在透過私募股權收購，我們已經是一家私人公司，但被私募股權收購，作為那裡更大企業的分拆。我們認為交易尚未結束，或尚未被告知交易已結束。但是，我的意思是看看它如何發揮作用很有趣。我的意思是，像這樣私有化會帶來債務負擔。

We went through that. We went from privately owned to private equity owned back in 2006 time frame, and it's different to operate a company with a high degree of leverage and a large amount of debt. So I think that, if I were in somebody's shoes there, that's something that is an adjustment period and takes time to kind of work through. It's also a complicated carve-out of a 150-plus year-old company. So that may be a complexity as well.

我們經歷過那件事。早在2006年，我們就從私人企業轉變為私募股權企業，經營高槓桿和大量債務的公司是不同的。所以我認為，如果我處在某人的立場上，那就是一個調整期，需要時間來完成。這也是對一家擁有 150 多年歷史的公司進行複雜的剝離。所以這也可能是個複雜性。

I don't know that it will impact the competitive landscape that much. I think where that company -- where they compete quite well with us is on the C&I side of the business. And they've got quite a nice C&I business, good competitor there. On the residential side, they're quite a bit smaller. They may see opportunities there. But I think this is a place where we've done well, I think, to use our scale to our advantage. And that's, I think, largely why, as we've said in our prepared remarks this morning, we actually think we've improved our share position here over the last several quarters.

我不知道這會對競爭格局產生多大影響。我認為該公司與我們競爭激烈的地方是在商業與工業方面。他們有相當不錯的商業和工業業務，那裡有很好的競爭對手。在住宅方面，它們要小得多。他們可能會在那裡看到機會。但我認為，我們在利用規模優勢方面做得很好。我認為，這就是為什麼，正如我們今天早上在準備好的發言中所說的那樣，我們實際上認為我們在過去幾個季度中已經改善了我們的股票地位。

So we continue to spend heavily on driving leads for the category, driving awareness for the category, investing in our distribution, investing in our sales processes and all of those things continue to provide nice returns for us in the way of continued gains in share and again, a market opportunity that still remains really, I think, pretty huge. I think we've been doing this with home standby for a long time, but penetration rates are still only, what, 6.5%?

因此，我們繼續投入大量資金來推動該類別的銷售線索，提高該類別的知名度，投資於我們的分銷，投資於我們的銷售流程，所有這些都繼續以持續增長的份額和收益的方式為我們提供良好的回報。我認為我們在家庭待機方面已經這樣做了很長時間，但滲透率仍然只有，什麼，6.5%？

6.25%.

6.25%。

6.25% [Kris]. So I think there are -- for us, when you think of every 1% of penetration being kind of a $2.5 billion to $3 billion market opportunity, there's a ton of runway left here, and it's worth the -- it's worth being, I think, being a net investor here, if you will, in the category.

6.25% [克里斯]。所以我認為，對我們來說，當你想到每 1% 的滲透率都相當於 25 億至 30 億美元的市場機會時，這裡還有大量的跑道，這是值得的，我想一想，如果你願意的話，作為這個類別的淨投資者。

And our next question comes from the line of Donovan Schafer from Northland Capital Markets.

我們的下一個問題來自 Northland Capital Markets 的 Donovan Schafer。

I want to dig in and kind of unpack in industrial distributor channel a little bit because that was a positive development this quarter offsetting some of the other C&I kind of subsectors or channels or however you want to call it. So -- and Aaron, you provided some good information about like this is something you guys have kind of been building for better part of the last decade. But it doesn't get a lot of discussion in terms of like the mechanics and the kind of, I don't know, origin story or whatever. And so it'd be good -- I want to try and get a handle on kind of significance in some things.

我想深入研究工業分銷商管道，因為這是本季度的積極發展，抵消了其他一些工商業類子行業或管道，或者無論你如何稱呼它。所以——亞倫，你提供了一些很好的信息，就像你們在過去十年的大部分時間裡一直在構建的東西一樣。但它並沒有在機制和起源故事或其他什麼方面得到很多討論，我不知道。所以這會很好——我想嘗試並掌握某些事情的重要性。

Like the first thing would just be, can you give us a general sense of like what portion of C&I revenue that can make up? And then what portion of that would be distributors that you actually own? And some of this is also getting at the issue of like -- is this a case where stuff could get shipped to distributors but doesn't necessarily have an end user and so you can have like a channel buildup here? Or do the dynamics not work like that? So any time something ships through a distributor and you recognize revenue, there's a project or an end user that's going to be taking delivery. Just how that works in its size and significance?

就像第一件事一樣，您能否給我們一個大致的了解，例如 C&I 收入可以構成哪些部分？那麼其中哪一部分是您實際擁有的經銷商？其中一些也涉及到這樣的問題——在這種情況下，東西可以運送給分銷商，但不一定有最終用戶，所以你可以在這裡建立管道嗎？或者動力不是這樣運作的嗎？因此，每當有東西透過分銷商發貨並且您確認了收入時，就會有一個項目或最終用戶接收交貨。它的規模和意義究竟如何？

Yes. I mean that's a significant portion of our total domestic C&I sales. So again, it's -- I think when you kind of step back, it's close to 70% of the total for domestic C&I. So it's 70%, 75% of the total, with the balance being, again, the mobile products and telecom products, and again, those are down largely here. So as we documented, they go in cycles. We're a big player in those markets in rental and in telecom. But when those large customers are not spending CapEx there. They -- that disproportionately impacts us because we supply a lot of equipment into those areas.

是的。我的意思是，這占我們國內工商業總銷售額的很大一部分。所以，我想，當你退後一步時，它接近國內 C&I 總數的 70%。所以它佔總數的 70%、75%，其餘的是行動產品和電信產品，同樣，這些產品在這裡也大幅下降。正如我們所記錄的，它們是循環的。我們是這些租賃和電信市場的重要參與者。但是當這些大客戶不在那裡花費資本支出時。他們——這對我們產生了不成比例的影響，因為我們向這些領域提供了大量設備。

So to have the industrial distribution channel grow as it has been, is a really important, I would call counterweight, if you will, to some of those larger customers or larger concentrations of product and customers in rental and telecom. You're right, we don't talk a lot about the industrial distributor business, mainly because we spend an inordinate amount of time talking about residential, our consumer power businesses and the residential standby and Energy Tech.

因此，讓工業分銷管道像以前那樣發展，對於租賃和電信領域的一些較大客戶或產品和客戶的集中度來說，是非常重要的，如果你願意的話，我可以稱之為平衡。你是對的，我們很少談論工業分銷商業務，主要是因為我們花了太多時間談論住宅、我們的消費電力業務以及住宅備用和能源技術。

And -- but underneath the covers here, this has been, I think, a really nice success story. We've got a great team there that executes well. You may recall, Donovan, we announced that we're building a new factory here in Wisconsin, in Beaver Dam because we believe in the growth of those products and the importance of that to our business overall and it's an area where we needed some capacity.

而且——但在幕後，我認為這是一個非常好的成功故事。我們有一支出色的團隊，執行力出色。你可能還記得，多諾萬，我們宣布我們將在威斯康辛州的海狸壩建造一家新工廠，因為我們相信這些產品的增長以及它們對我們整體業務的重要性，並且這是我們需要一些產能的領域。

We've been building bigger and bigger products. We also did a pretty massive investment in our R&D space here in Waukesha, Wisconsin. This is our technical headquarters, specifically go after larger opportunities in the C&I space and natural gas, in particular, and some of the things we've been talking about with natural gas beyond standby kind of market opportunities.

我們一直在製造越來越大的產品。我們也對威斯康辛州沃克夏的研發空間進行了相當大的投資。這是我們的技術總部，專門追求工商業領域和天然氣領域的更大機會，特別是我們一直在談論的一些與天然氣相關的超出待機類型的市場機會。

Even though that's cooled off here recently in the higher interest rate environment, we do think that, that's really important. And I would say this, one of the things that maybe the unsung hero of our success when the markets around telecom in particular, when they cycle on, one of the reasons that we've done well there is because we can provide kind of coast-to-coast coverage with our distribution to provide the kind of service and support that those large accounts demand for their fleets. And that's kind of a really important aspect of our industrial distributor channel.

儘管最近在較高的利率環境下這種情況有所降溫，但我們確實認為這非常重要。我想說的是，這可能是我們成功的無名英雄，尤其是電信市場，當它們循環發展時，我們在那裡做得很好的原因之一是因為我們可以提供某種海岸- 我們的分銷覆蓋整個海岸，為那些大客戶為其車隊提供所需的服務和支援。這是我們工業分銷管道的一個非常重要的方面。

Again, the sales don't flow through there, but the service and support is a part of what they provide for us. So the 2 are kind of interrelated in terms of telecom and the -- we call it our IDC channel, our Industrial Distributor Channel. The products that go through IDC are very bespoke, highly customized. No 2 buildings in terms of their electrical requirements are the same. So we produce -- it's basically a configure-to-order business with a long sales cycle, with quoting and then it turns into an order, and then you've got lead time for these products that can be anywhere from as short as 8 to 10 weeks and as long in some cases, is out to 52 weeks depending on the size of the products and the type of products.

同樣，銷售不會流經那裡，但服務和支援是他們為我們提供的一部分。因此，這兩者在電信和我們稱之為 IDC 通路、工業分銷商通路方面是相互關聯的。透過IDC的產品都是客製化、高度客製化的。沒有兩棟建築物的電力要求是相同的。所以我們生產——這基本上是一個按訂單配置的業務，銷售週期很長，有報價，然後變成訂單，然後你就可以得到這些產品的交貨時間，可以短至 8最長可達10週，在某些情況下甚至長達52 週，具體取決於產品的尺寸和類型。

So there's a lot of influencers in the process from specifying engineers to even the architects that work on these projects and certainly, the owner operators, the electrical contractors, the general contractors, everybody plays a role in selecting the solution that is needed for a particular application. So over the last decade, on top of building out that industrial distributor channel, the actual distributors themselves and strengthening that channel we've been focused on engaging with all of those decision-makers up and down the value chain there.

因此，這個過程中有很多影響因素，從指定工程師到參與這些專案的建築師，當然還有業主營運商、電氣承包商、總承包商，每個人都在選擇特定專案所需的解決方案方面發揮著作用。因此，在過去的十年中，除了建立工業分銷商通路、實際分銷商本身並加強該通路之外，我們一直致力於與價值鏈上下游的所有決策者接觸。

And I think that's really helped us quite a bit in terms of getting Generac specifically named in a specification. That's really important. If you're not specifically named, that becomes challenging for somebody to find your product or even your distribution on a particular bid project. So those are the things that I think, engaging with those specifying engineers in that community and spreading the word about, in particular, the importance and the advantages of natural gas over diesel, which -- we're the largest natural gas genset provider for backup power in the world. And we hold an advantage there over others that we like to talk to distribution about.

我認為這對我們在規格中專門命名 Generac 確實有很大幫助。這真的很重要。如果沒有明確指定您的名字，那麼其他人就很難找到您的產品，甚至找到您在特定投標項目上的發行版。因此，這些就是我認為的事情，與該社區中的那些指定工程師進行接觸，並傳播有關天然氣相對於柴油的重要性和優勢的信息，我們是最大的天然氣發電機組供應商世界上的備用電源。我們在這方面比其他人更有優勢，我們喜歡談論分銷。

So I think that is part of -- again, part of this story overall is natural gas backup power is growing more quickly than diesel backup power, outside of the large data center market. Have to qualify that now, and that's not a part of the market we play in. So in the served market where we play, we're seeing gas growth rates exceeding diesel growth rates. And that's been the same for some time and we're a beneficiary of that, and so is our distribution. So you're seeing all of that play out in that -- in the strength that we're talking about here on the industrial distributor channel.

因此，我認為，在大型資料中心市場之外，天然氣備用電源的成長速度比柴油備用電源更快。現在必須證明這一點，而這不是我們所涉足的市場的一部分。一段時間以來，情況一直如此，我們是受益者，我們的分配也是如此。所以你會看到所有這些都在我們在這裡談論的工業分銷商管道的力量中發揮作用。

And our next question comes from the line of Kashy Harrison from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 Kashy Harrison。

So Aaron, I think you indicated that HSB activations were down modestly year-over-year. Can you just help us quantify that? What does modestly mean? And then you also indicated HSB shipments and activations were aligned in February and March. And so I was just wondering if, York, you could just help us think through 2Q residential revenues. I'm just trying to understand how we get from being up 2% in 1Q to being up low double digits for the full year.

Aaron，我認為您表示 HSB 活化量比去年同期略有下降。你能幫我們量化一下嗎？謙虛的意思是什麼?然後您也表示 HSB 出貨量和啟動量在 2 月和 3 月是一致的。所以我只是想知道，約克，你是否可以幫助我們思考第二季的住宅收入。我只是想了解我們如何從第一季的 2% 成長到全年低兩位數的成長。

Yes, Kash. So the -- from an activation standpoint, I mean, modestly, it's kind of at mid-single-digit range, which is, again, not too far off of our expectations in terms of year-over-year. We just -- we kind of expected it to be a little bit softer coming out of the -- we had IHCs in Q4 were lower as a result of the weaker power outage environment, frankly, Q3, we really didn't have much of a season last year in terms of the outage environment. So kind of the back half of last year maybe wasn't -- didn't play out as strongly as it might have historically. And as a result, it just -- you see that play out in fewer installs here year-over-year in the quarter.

是的，卡什。因此，從激活的角度來看，我的意思是，謙虛地說，它處於中等個位數範圍，這再次與我們的同比預期相差不遠。我們只是 - 我們預計它會稍微軟一些 - 由於停電環境較弱，我們第四季度的 IHC 較低，坦率地說，第三季度，我們確實沒有太多去年一個季節就停電環境而言。所以去年下半年的情況可能沒有像歷史上那麼強勁。結果，您會看到本季的安裝量比去年同期減少。

But again, not dramatically so, which I think is good. And I think when you look historically, the category is still up, it's up dramatically from where it was kind of, you go to 2019 ranges, those levels of activations and we're up significantly from that area. So the category is quite a bit bigger today than it was then. But I think just a little bit off near term here from the weaker power outage environment in the last couple of quarters.

但同樣，情況並沒有那麼嚴重，我認為這很好。我認為，當你回顧歷史時，這個類別仍然在上升，它比原來的水平大幅上升，你進入 2019 年的範圍，那些激活水平，我們從該區域顯著上升。所以今天的類別比當時大得多。但我認為，由於過去幾季停電環境較弱，短期內的情況略有偏差。

Yes. And then your comment about like as residential paces from Q1 to Q2, we did -- in Q1, we still did undership the market. We are still bringing field inventory down and again, by the tail end of the quarter, as we get into Q2, we feel like we're back to normal for the most part. So we still did undership the market. If you recall, we undershipped 2023 by around $300 million. I guess, I would say, 1/4 of that probably a little less than 1/4 of that was what we undershipped the market in Q1 here. So we got back to normal.

是的。然後，您關於住宅從第一季到第二季度的步伐的評論，我們確實做到了——在第一季度，我們仍然確實落後於市場。我們仍在不斷降低現場庫存，到本季末，當我們進入第二季時，我們感覺大部分情況已經恢復正常。所以我們仍然落後於市場。如果你還記得的話，我們 2023 年的出貨量少了約 3 億美元。我想，我想說，其中的 1/4 可能略小於 1/4，這是我們在第一季的市場出貨量不足的情況。所以我們又恢復正常了。

So you won't have that in Q2, that undershipping. And then just the seasonality of the business picks up from Q1 to Q2 in that category. So that's again, that's -- you got to look back at what historical seasonality looks like in that, again, supports the guide for residential products in the future.

因此，第二季度不會出現出貨不足的情況。然後，該類別的業務季節性從第一季到第二季有所上升。所以，這又是——你必須回顧一下歷史季節性是什麼樣的，這再次支持了未來住宅產品的指南。

One moment for our next question. And our next question comes from the line of Jon Windham from UBS.

請稍等一下我們的下一個問題。我們的下一個問題來自瑞銀集團 (UBS) 的 Jon Windham。

I'll keep it quick as we're running a bit long. Just any sort of comments around you mentioned some weakness in the non HSB residential market. But one of the really strong markets right now is storage deployments. Residential storage deployments are up 200% year-on-year in California. Just some comments about the competitive landscape and your ability to compete in that market. I appreciate all the insights to that.

我會保持快點，因為我們跑得有點長。您周圍的任何評論都提到了非 HSB 住宅市場的一些弱點。但目前真正強勁的市場之一是儲存部署。加州的住宅儲存部署量年增 200%。只是一些關於競爭格局以及您在該市場競爭的能力的評論。我很欣賞對此的所有見解。

Yes. Thanks. Yes. So storage attach rates are up dramatically. Solar plus storage install rates, as we understand them are -- certainly, new solar projects are down significantly. 50%, 60% year-over-year in California. And so you are seeing greater attachment rates because of the NEM 3.0 position. And that's where storage I think you're seeing just the absolute numbers are probably up because of that higher attach rate. California for us, that's a market largely dominated by Tesla. It's not a market that we've historically been strong in. So we're just -- we're really not participating dramatically in that.

是的。謝謝。是的。因此，儲存附加率急劇上升。據我們了解，太陽能加儲能安裝率當然是新的太陽能專案大幅下降。加州年增 50%、60%。因此，由於 NEM 3.0 的定位，您會看到更高的依戀率。我認為這就是存儲的絕對數量可能會因為更高的附加率而上升的地方。對我們來說，加州是一個主要由特斯拉主導的市場。這不是一個我們歷來強勢的市場。

I will say, I mean, our storage business is up year-over-year. So it's not double. It's not 200%. But that's an area that we are seeing some growth off of a pretty hard bottom as we've described over the last several years. But actually, as we also called out, I think the bigger challenge in the other residential products, actually, it's portable generators. We haven't talked a ton about that. I mentioned in our prepared remarks that both domestically because of the softer outage environment here over the last several quarters.

我想說的是，我們的儲存業務逐年成長。所以不是雙的。這不是200%。但正如我們在過去幾年中所描述的那樣，我們看到這個領域在一個相當堅硬的底部後出現了一些增長。但實際上，正如我們也指出的那樣，我認為其他住宅產品面臨的更大挑戰，實際上是便攜式發電機。我們還沒有談論太多。我在我們準備好的發言中提到，這在國內都是因為過去幾季停電環境較為疲軟。

And then internationally, international portable gen sales were down hard Q1 year-over-year. There was a lot of power security concerns in the year ago quarter in Europe, largely related to the Russia-Ukraine war. And that's abated somewhat. And so we've seen the portable gen demand come off hard in the international markets for us, which is specifically kind of the European markets.

然後在國際上，第一季國際便攜式發電機銷量較去年同期大幅下降。去年同期歐洲存在許多電力安全問題，很大程度與俄羅斯和烏克蘭戰爭有關。而且這種情況有減弱。因此，我們看到國際市場上便攜式發電機的需求大幅下降，特別是歐洲市場。

And then our chore business, which we don't talk about a ton, but that suffered from -- that's really suffered last year. The longer-term trends there coming out of the pandemic, there's a lot of kind of buy ahead on equipment, both at the end market level as well as the distribution level. And you can see all the public comps out there that are involved in this space on the residential chore product space. And it's been a pretty brutal market over the last -- really the last 1.5 years. And we were hoping that, if we got a little bit of a spring weather here, that was kind of built into the forecast, that, that would be helpful.

然後是我們的家務業務，我們不怎麼談論它，但去年確實受到了影響。從疫情爆發後的長期趨勢來看，無論是在終端市場層面還是在分銷層面，都有很多設備提前購買。您可以在住宅雜務產品空間中看到參與此空間的所有公共比較。過去——實際上是過去 1.5 年，這是一個相當殘酷的市場。我們希望，如果我們這裡有一點春天的天氣，這會被納入預報中，那會有所幫助。

But what we found is distribution partners, they didn't sell through their snow season. It was a weak snow season, which with high snow inventories, they were reticent to invest in spring chore products. So that's been delayed a bit. Now thankfully, weather is picking up here, trends more near term or a little more positive with chore products, but it's still been -- it's been a rough go. So it's really chore and then those energy tech markets that have been softer and then the portable generator pullback that we talked about, which were kind of headwinds for us in the quarter.

但我們發現分銷合作夥伴在雪季期間並沒有銷售。當時正值雪淡季節，雪庫存較高，他們對春季家務產品的投資較為謹慎。所以這件事被推遲了一些。現在值得慶幸的是，這裡的天氣正在好轉，家務產品的近期趨勢或更積極，但它仍然是——這是一個艱難的過程。因此，這確實是一件苦差事，然後是能源技術市場的疲軟，然後是我們談到的便攜式發電機的回調，這對我們本季來說是一種阻力。

And our next question comes from the line of Jordan Levy from Truist.

我們的下一個問題來自 Truist 的 Jordan Levy。

Appreciate all the comments on gross margins here. And I just wanted to see on the cost side, if you could give us some more specifics around what the input cost reductions were that you're realizing in the first quarter? And as a quick second part of that question, just curious on the sensitivity of costs overall to copper prices, specifically given what that commodity has done over the last month or 1.5 months?

感謝這裡所有關於毛利率的評論。我只是想看看在成本方面，您能否向我們提供更多關於您在第一季實現的投入成本降低的具體資訊？作為該問題的第二部分，只是好奇總體成本對銅價的敏感性，特別是考慮到該商品在過去一個月或 1.5 個月的表現？

Yes. No, I think it's a number of things in terms of -- well, steel is probably our largest input and we've really -- those steel costs, I guess, over the longer term have come down. And as we've been turning through our higher cost inventory, we're just seeing those lower steel costs come through, again, maybe a little bit faster than we originally anticipated. So steel is an important factor. Obviously, logistics, freight costs, while those came down throughout last year and again, we're starting to turn through that inventory and the realization of those lower freight costs, we're starting to see, that's part of the improvement, just better plant efficiencies. I think that's better plant absorption. We're seeing that as well in terms of strong execution there.

是的。不，我認為這涉及到很多方面——嗯，鋼鐵可能是我們最大的投入，而且我們確實——我想，從長遠來看，這些鋼鐵成本已經下降。當我們一直在清理成本較高的庫存時，我們只是看到鋼鐵成本較低的情況再次出現，可能比我們最初預期的要快一點。所以鋼材是重要因素。顯然，物流、貨運成本雖然去年全年都在下降，但我們開始清理庫存並實現較低的貨運成本，我們開始看到，這是改進的一部分，只是更好工廠效率。我認為植物吸收效果更好。我們在強而有力的執行力方面也看到了這一點。

So I would say those are probably the biggest factors on sort of how we were able to realize the better gross margin faster than we originally anticipated. In copper, I guess, copper, it does have an impact, but I would say it's lesser so than..

因此，我想說，這些可能是我們如何比最初預期更快實現更高毛利率的最大因素。我想，在銅中，它確實有影響，但我想說它的影響要小於…

And there's lags. I mean...

並且存在滯後。我是說...

If you add to the steel side, yes. So copper has gone up. But that, I would say, is in terms of lower impact relative to steel.

如果添加到鋼側，是的。所以銅價漲了。但我想說的是，相對於鋼鐵來說，影響較小。

And our next question comes from the line of Vikram Bagri from Citi.

我們的下一個問題來自花旗集團的 Vikram Bagri。

I wanted to ask about R&D expense, which increased noticeably in the quarter. I was wondering if you can share where your R&D dollars are being spent; in your previous question -- answer to your previous question, you had mentioned that there are no plans of launching products that directly target the data center market.

我想問研發費用，這個季度研發費用明顯增加。我想知道您是否可以分享一下您的研發經費都花在哪裡了？在你上一個問題的回答中，你提到沒有計劃推出直接針對資料中心市場的產品。

So I imagine R&D is being largely focused on energy technology. If you can share the progress of next-gen MLPE storage products, is the target to compete in that market at a lower price point with lower failure rates or an ease of installation or there are new features or USPs, we should keep in mind that give you an edge against the competition in that market?

所以我認為研發主要集中在能源技術上。如果您可以分享下一代 MLPE 儲存產品的進展，是在該市場以較低的價格點競爭、較低的故障率或易於安裝或有新功能或 USP 的目標，我們應該記住：讓您在該市場的競爭中具有優勢？

And then lastly, you had mentioned OpEx will be roughly 23% of sales last quarter, but wasn't mentioned today, I wanted to make sure the guidance has not changed, given the R&D spending update and on your comments on lead generation spending this quarter?

And then lastly, you had mentioned OpEx will be roughly 23% of sales last quarter, but wasn't mentioned today, I wanted to make sure the guidance has not changed, given the R&D spending update and on your comments on lead generation spending this四分之一?

Yes. This is -- on the last part on the OpEx guidance, I did -- in our prepared comments, we did mention that the outperformance in Q1 on the gross margin would get roughly offset by a little bit higher OpEx, again, as we continue to invest in those strategic initiatives. It's early. So we basically held the EBITDA margin guide where we had it from last quarter with the offset -- the gross margin outperformance slightly offset by the OpEx side.

是的。這是——在營運支出指引的最後一部分，我確實——在我們準備好的評論中，我們確實提到，隨著我們繼續，第一季毛利率的優異表現將再次被略高的營運支出大致上抵消投資於這些策略舉措。現在還早。因此，我們基本上保持了上季度的 EBITDA 利潤率指導值，並進行了抵消——毛利率的優異表現被營運支出方面略有抵消。

Yes. And then on the -- Vikram, on the R&D side, yes, we're spending very heavily largely a lot of those R&D dollars. I mean it's across the board on all of our products, but obviously, the energy tech products. We are knee-deep in our next-generation storage devices, in the residential side that we'll be bringing to market here later this year. And then, of course, our rooftop solar products, power generation products, inverter products that we continue to invest in. We have our next generation, those products coming to market in early '25.

是的。然後，維克拉姆，在研發方面，是的，我們花費了大量研發資金。我的意思是我們所有的產品都是如此，但顯然是能源科技產品。我們正全力開發下一代住宅儲存設備，我們將於今年稍後將其推向市場。當然，還有我們繼續投資的屋頂太陽能產品、發電產品、逆變器產品。

So there's a tremendous amount of effort right now. We've been building teams. You may have seen our announcement. We opened a tech center in Reno, Nevada. We've been filling that with people. We've got tech offices in Portland, Maine. We've got tech offices in Vancouver. We've got tech offices in Bend, Oregon, in L.A., in Denver. And so we've really cast a pretty wide net here as we build out, the talent level needed to compete with obviously some very formidable companies there that supply not only storage but also on the inverter side.

所以現在需要付出巨大的努力。我們一直在組建團隊。您可能已經看到我們的公告了。我們在內華達州里諾市開設了一個技術中心。我們一直在用人來填補這個空缺。我們在緬因州波特蘭設有技術辦公室。我們在溫哥華設有技術辦公室。我們在俄勒岡州本德、洛杉磯和丹佛設有技術辦公室。因此，在我們建設的過程中，我們確實在這裡撒下了一張相當廣泛的網，需要人才水平來與那裡的一些非常強大的公司競爭，這些公司不僅提供存儲，還提供逆變器方面的服務。

So from a USP standpoint, again, we'll talk more about these product launches as we get closer, but we believe we've got some novel approaches to certain elements of the tech -- but we also think that there's the integration of all of these products together more seamlessly. Today, if you want to put together a solar system with a storage device, with an EV charger, with thermostatic controls, with even a generator for longer-term backup, load management, all of these different devices, that's 3, 4, 5 different apps you've got in your hand.

因此，從USP 的角度來看，隨著時間的推移，我們將更多地討論這些產品的發布，但我們相信我們已經對技術的某些元素有了一些新穎的方法- 但我們也認為所有這些都整合在一起將這些產品更加無縫地組合在一起。如今，如果您想將太陽能係統與儲存設備、電動車充電器、恆溫控制裝置、甚至用於長期備用、負載管理的發電機以及所有這些不同的設備組合在一起，那就是 3、4、5您手中有不同的應用程式。

We're working on a project that is unifying all of these technologies on a single platform, really utilizing the Ecobee experience. It was the central part of our strategy in the Ecobee acquisition. The ML and AI that they deploy today in the thermostatic controls environment and the really high-quality user experience that they bring together. We want to bring that to all these products. And we think that will be unique to the marketplace.

我們正在進行一個項目，將所有這些技術統一在一個平台上，真正利用 Ecobee 的經驗。這是我們收購 Ecobee 策略的核心部分。他們今天在恆溫控制環境中部署的機器學習和人工智慧以及它們帶來的真正高品質的用戶體驗。我們希望將這一點應用到所有這些產品中。我們認為這對市場來說是獨一無二的。

When you look across the market today, we don't think anybody has the breadth of offering that we have and putting it all together on a single platform to help homeowners in particular, to help them control not only resiliency, which is central to our approach here, but also comfort and cost, which are as electrical rates, utility rates continue to drive upward. Cost is going to be, I think, one of the things that is going to creep up on rate payers in a way you're already seeing evidence of it in certain markets like California.

當你縱觀當今的市場時，我們認為沒有人能夠提供像我們這樣廣泛的產品，並將其全部放在一個平台上來幫助房主，特別是幫助他們控制彈性，這是我們的核心方法在這裡，但也包括舒適度和成本，隨著電價、公用事業費率的不斷上漲。我認為，成本將成為納稅人面臨的問題之一，你已經在加州等某些市場看到了這一點。

And it's going to drive homeowners to investigate other solutions, distributed solutions, solutions that help them give them more information and more control over the power that they generate, the self-generation that they store, that they export back to the grid and the resiliency that they absolutely demand in their own homes. So I think that over time, this will become more evident as these products get into the market. But I think and with our brand and our distribution and our sales and marketing competencies, I think you're going to see that we believe we'll have success there in the long term.

這將促使房主研究其他解決方案、分散式解決方案、幫助他們提供更多資訊並更好地控制自己產生的電力、儲存的自發電、輸出回電網和彈性的解決方案這是他們在自己家裡絕對要求的。所以我認為隨著時間的推移，隨著這些產品進入市場，這一點將會變得更加明顯。但我認為，憑藉我們的品牌、我們的分銷以及我們的銷售和行銷能力，我想你會看到我們相信我們將在長期內取得成功。

This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Kris Rosemann for any further remarks.

今天節目的問答環節到此結束。我想將程式交還給克里斯·羅斯曼以供進一步評論。

We want to thank everyone for joining us this morning. We look forward to discussing our second quarter 2024 earnings results with you in late July. Thank you again, and goodbye.

我們要感謝大家今天早上加入我們。我們期待在 7 月下旬與您討論 2024 年第二季的獲利結果。再次感謝您，再見。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了該程式。您現在可以斷開連線。再會。