HEICO Corp (HEI) 2023 Q2 法說會逐字稿

Welcome to the HEICO Corporation Second Quarter Fiscal 2023 Financial Results Call. My name is Tamara, and I'll be today's operator.

歡迎來到 HEICO Corporation 2023 財年第二季度財務業績電話會議。我叫塔瑪拉，我是今天的接線員。

Certain statements in today's call will constitute forward-looking statements which are subject to risks, uncertainties and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements as a result of factors including, but not limited to, the severity, magnitude and duration of public health threats such as the COVID-19 pandemic or health emergencies; HEICO's liquidity and the amount and timing of cash generation; lower commercial air travel caused by health emergencies and their aftermath; airline fleet changes or airline purchasing decisions, which could cause lower demand for our goods and services; product specification costs and requirements.

今天電話會議中的某些陳述將構成前瞻性陳述，這些陳述受風險、不確定性和意外事件的影響。 HEICO 的實際結果可能與這些前瞻性陳述中明示或暗示的結果存在重大差異，原因包括但不限於 COVID-19 大流行或突發衛生事件等公共衛生威脅的嚴重程度、規模和持續時間; HEICO的流動性以及產生現金的數量和時間；減少由突發衛生事件及其後果引起的商業航空旅行；航空公司機隊變更或航空公司採購決策，這可能導致對我們的商品和服務的需求下降；產品規格成本和要求。

Which could cause an increase to our cost to complete contracts; governmental and regulatory demands; export policies and restrictions; reductions in Defense, Space or Homeland Security spending by U.S. and/or foreign customers or competition from existing and new competitors, which could reduce our sales; our ability to introduce new products and services at profitable pricing levels, which could reduce our sales or sales growth; product development or manufacturing difficulties, which could increase our product development and manufacturing costs and delay sales; our ability to make acquisitions and achieve operating synergies from acquired businesses; customer credit risk, interest, foreign currency exchange and income tax rates; economic conditions, including the effects of inflation within and outside of the aviation, defense, space, medical, telecommunications and electronics industries, which could negatively impact our cost and revenues; and defense spending or budget cuts, which could reduce our defense-related revenue.

這可能會導致我們完成合同的成本增加；政府和監管要求；出口政策和限制；美國和/或外國客戶減少國防、太空或國土安全支出或來自現有和新競爭對手的競爭，這可能會減少我們的銷售額；我們以有利可圖的價格水平推出新產品和服務的能力，這可能會降低我們的銷售額或銷售額增長；產品開發或製造困難，這可能會增加我們的產品開發和製造成本並延遲銷售；我們進行收購併從被收購業務中獲得運營協同效應的能力；客戶信用風險、利息、外幣兌換率和所得稅率；經濟狀況，包括航空、國防、太空、醫療、電信和電子行業內外通貨膨脹的影響，這可能對我們的成本和收入產生負面影響；和國防開支或預算削減，這可能會減少我們與國防相關的收入。

Parties listening to this call are encouraged to review all of HEICO's filings with the Securities and Exchange Commission including, but not limited to, filings on Form 10-K, Form 10-Q and Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable law.

鼓勵聽取本次電話會議的各方審查 HEICO 向美國證券交易委員會提交的所有文件，包括但不限於 10-K 表格、10-Q 表格和 8-K 表格的文件。我們沒有義務公開更新或修改任何前瞻性陳述，無論是由於新信息、未來事件或其他原因，除非適用法律要求。

I will now turn the call over to Laurans Mendelson, HEICO's Chairman and Chief Executive Officer.

我現在將電話轉交給 HEICO 董事長兼首席執行官 Laurans Mendelson。

Thank you very much, and good morning to everyone on this call. We thank you for joining us, and we welcome you to the HEICO Second Quarter Fiscal '23 Earnings Announcement Teleconference. I'm Larry Mendelson, Chairman and CEO of HEICO Corporation; and I'm joined here this morning by Eric Mendelson, HEICO's Co-President and President of HEICO's Flight Support Group; Victor Mendelson, HEICO's Co-President and President of HEICO's Electronic Technologies Group; and Carlos Macau, our Executive Vice President and CFO.

非常感謝大家，早上好。感謝您加入我們，我們歡迎您參加 HEICO 第二季度 23 財年收益公告電話會議。我是 HEICO Corporation 的董事長兼首席執行官 Larry Mendelson；今天早上，HEICO 的聯席總裁兼飛行支持集團總裁 Eric Mendelson 和我一起來到這裡； HEICO聯席總裁兼HEICO電子技術集團總裁Victor Mendelson；和我們的執行副總裁兼首席財務官 Carlos Macau。

Before reviewing our operating results in detail, I'd like to take a moment to thank all of HEICO's talented team members for delivering another strong quarter. As I have said many times before, HEICO's strength comes from its people, our team members. Their commitment to our customers and the consistent delivery of high-quality products and services is what drives our excellent financial results for shareholders. I continue to be very optimistic about the future for HEICO and our over 9,000 team members.

在詳細回顧我們的經營業績之前，我想花點時間感謝 HEICO 所有才華橫溢的團隊成員帶來了又一個強勁的季度。正如我之前多次說過的，HEICO 的力量來自於它的人，我們的團隊成員。他們對我們客戶的承諾以及始終如一地提供高質量的產品和服務是我們為股東帶來出色財務業績的動力。我對 HEICO 和我們 9,000 多名團隊成員的未來仍然非常樂觀。

I'd like to summarize the highlights of the second quarter fiscal '23 results. They are record results. Consolidated second quarter fiscal '23 net sales represent record results for HEICO, driven principally by record net sales within the Flight Support Group. This arose mainly from continued rebound in demand for commercial aerospace products and services and the contributions from our fiscal '23 and '22 acquisitions.

我想總結一下 23 財年第二季度業績的亮點。他們是創紀錄的結果。 23 財年第二季度的綜合淨銷售額代表了 HEICO 創紀錄的業績，這主要是由飛行支持集團內創紀錄的淨銷售額推動的。這主要是由於對商業航空航天產品和服務的需求持續反彈，以及我們 23 財年和 22 財年收購的貢獻。

Consolidated operating income and net sales in the second quarter of fiscal '23 each improved by 28% as compared to the second quarter of fiscal '22. These results mainly reflect 10% quarterly consolidated organic net sales growth as well as the impact from some acquisitions. Consolidated net income increased 24% to $105.1 million or $0.76 per diluted share in the second quarter of fiscal '23, and that was up from $85 million or $0.62 per diluted share in the second quarter of fiscal '22.

與 22 財年第二季度相比，23 財年第二季度的綜合營業收入和淨銷售額分別增長了 28%。這些結果主要反映了 10% 的季度合併有機淨銷售額增長以及一些收購的影響。 23 財年第二季度的綜合淨收入增長 24% 至 1.051 億美元或每股攤薄收益 0.76 美元，高於 22 財年第二季度的 8500 萬美元或攤薄每股收益 0.62 美元。

Our total debt to shareholders' equity was 26.4% as of April 30, '23, and this compared to 11% as of October 31, '22. Our net debt, which is total debt less cash and cash equivalents of $627.5 million as of April 30, '23 compared to shareholders' equity ratios was 21.9% as of April 30, '23, and this compared to 5.7% as of October 31, '22. Our net debt-to-EBITDA ratio was 0.4x, less than 1x, as of April 30, '23, and that compared to 0.25x as of -- October 31, '22. Both times were less than 1x EBITDA. The increase in our debt ratio in the first 6 months of fiscal '23 principally reflects the impact from financing the purchase of Exxelia in January '23.

截至 2023 年 4 月 30 日，我們的股東權益總債務為 26.4%，而截至 22 年 10 月 31 日，這一比例為 11%。我們的淨債務，即截至 23 年 4 月 30 日的總債務減去現金和現金等價物 6.275 億美元，與截至 23 年 4 月 30 日的股東權益比率為 21.9%，而截至 2020 年 10 月 31 日為 5.7% , '22.截至 2023 年 4 月 30 日，我們的淨債務與 EBITDA 比率為 0.4 倍，低於 1 倍，而截至 2022 年 10 月 31 日為 0.25 倍。兩次均低於 1 倍 EBITDA。我們在 23 財年前 6 個月的債務比率增加主要反映了 23 年 1 月為購買 Exxelia 融資的影響。

Cash flow provided by operating activities was $77.8 million in the second quarter of fiscal '23, and that compared to $96.8 million in the second quarter of fiscal '22. The cash flow provided by operating activities in the second quarter of fiscal '23 reflects an increase in working capital principally driven by an increase in inventory to support our increased consolidated backlog. We continue to forecast strong cash flow from operations for fiscal '23. As a personal comment, I always consider increase in inventories an indication of future growth in sales, so the increase in the inventory does not concern me.

23 財年第二季度經營活動提供的現金流為 7780 萬美元，而 22 財年第二季度為 9680 萬美元。 23 財年第二季度經營活動提供的現金流反映了營運資金的增加，這主要是由於庫存增加，以支持我們增加的綜合積壓訂單。我們繼續預測 23 財年運營產生的強勁現金流。作為個人評論，我一直認為庫存增加是未來銷售增長的一個跡象，所以庫存增加與我無關。

I will now discuss our recent acquisition activity. In March 23, we entered into an exclusive license and acquired certain key assets for the aircraft emergency locator transmitter, or as we call it in the industry, the ELT product line from Honeywell International, and this will fit nicely with the business operations of a subsidiary of the ETG Group. ELTs provide critical emergency transition signals in the event of aircraft impact on land or water to enable first responders to [locate the] aircraft. We expect this license and asset acquisition to be accretive to our earnings in the year following closing.

我現在將討論我們最近的收購活動。 3 月 23 日，我們獲得了霍尼韋爾國際飛機緊急定位發射器（業內稱為 ELT 產品線）的獨家許可並獲得了某些關鍵資產，這將非常適合一家公司的業務運營。 ETG集團的子公司。 ELT 在飛機撞擊陸地或水面時提供關鍵的緊急轉換信號，使第一響應者能夠 [找到] 飛機。我們預計該許可和資產收購將在交易結束後的一年中增加我們的收益。

Earlier this month, we announced that we entered into an agreement to acquire Wencor Group for $1.9 billion in cash and $150 million in HEICO Class A common stock, all to be paid at closing for a total of $2.050 billion in the aggregate. Upon closing, which is expected to occur by the end of calendar '23, Wencor would be HEICO's largest ever acquisition in purchase price as well as in revenue and income acquired. Wencor will become part of HEICO's Flight Support Group. Wencor is a large commercial and military aircraft aftermarket company, offering factory new FAA-approved aircraft replacement parts and value-added distribution of high use commercial and military aftermarket parts and aircraft and engine accessory component repair and overhaul services. Wencor is based in Peachtree, Georgia, and provides its parts and services internationally, employing approximately 1,000 team members in 19 facilities around the United States.

本月早些時候，我們宣布達成協議，以 19 億美元現金和 1.5 億美元的 HEICO A 類普通股收購 Wencor Group，所有這些都將在交易結束時支付，總計 20.5 億美元。預計將於 23 年底完成交易，Wencor 將成為 HEICO 有史以來最大的收購價格以及收購的收入和收益。 Wencor 將成為 HEICO 飛行支持集團的一部分。 Wencor 是一家大型商用和軍用飛機售後市場公司，提供經 FAA 批准的工廠全新飛機更換零件和高用途商用和軍用售後市場零件的增值分銷，以及飛機和發動機配件的維修和大修服務。 Wencor 總部位於佐治亞州桃樹市，在全球範圍內提供零部件和服務，在美國各地的 19 個工廠僱用了大約 1,000 名團隊成員。

HEICO recently entered into the financing arrangements to secure adequate funding for the Wencor acquisition. This acquisition is subject to government approval and customary closing conditions. The highly-synergistic acquisition is expected to be accretive to HEICO's earnings within the following year after closing. This acquisition materially expands HEICO's aftermarket product offerings and will enable the combined company to offer even greater savings and greater capabilities to customers while expanding our new products and services development capacity. Wencor is an ideal and perfect highly-complementary fit with HEICO.

HEICO 最近簽訂了融資安排，以確保為 Wencor 收購提供足夠的資金。此次收購須經政府批准和慣例成交條件。此次高度協同的收購預計將在交易完成後的下一年內增加 HEICO 的收益。此次收購極大地擴展了 HEICO 的售後市場產品供應，將使合併後的公司能夠為客戶提供更多的節省和更大的能力，同時擴大我們的新產品和服務開發能力。 Wencor 是與 HEICO 高度互補的理想完美契合。

At this time, I would like to introduce Eric Mendelson, Co-President of HEICO and President of HEICO's Flight Support Group, and he will discuss the second quarter results of the Flight Support Group.

此時，我想介紹一下HEICO聯席總裁兼HEICO飛行保障集團總裁Eric Mendelson，他將討論飛行保障集團第二季度的業績。

Thank you. The Flight Support Group's net sales increased 28% to a record $392.2 million in the second quarter of fiscal '23, up from $306.3 million in the second quarter of fiscal '22. The net sales increase in the second quarter of fiscal '23 reflects robust 20% organic growth as well as the impact from our profitable fiscal 2022 acquisitions. The organic growth mainly reflects increased demand for the majority of our commercial aerospace products and services resulting from continued recovery in global commercial air travel as compared to the second quarter of fiscal '22.

謝謝。 Flight Support Group 的淨銷售額在 23 財年第二季度增長了 28%，達到創紀錄的 3.922 億美元，高於 22 財年第二季度的 3.063 億美元。 23 財年第二季度的淨銷售額增長反映了 20% 的強勁有機增長以及我們盈利的 2022 財年收購的影響。有機增長主要反映了與 22 財年第二季度相比，全球商業航空旅行的持續復甦導致對我們大部分商業航空產品和服務的需求增加。

The Flight Support Group's operating income increased 51% to a record $99.9 million in the second quarter of fiscal '23, up from $66.2 million in the second quarter of fiscal '22. The operating income increase in the second quarter of fiscal '23 principally reflects the previously mentioned net sales growth and improved gross profit margin and the impact the amendment and termination of a contingent consideration agreement, partially offset by an increase in performance-based compensation expense. The improved gross margin in the second quarter of fiscal '23 principally reflects higher net sales within our Aftermarket Replacement Parts and Specialty Products product lines.

Flight Support Group 的營業收入在 23 財年第二季度增長了 51%，達到創紀錄的 9990 萬美元，高於 22 財年第二季度的 6620 萬美元。 23 財年第二季度的營業收入增長主要反映了前面提到的淨銷售額增長和毛利率提高以及或有對價協議的修改和終止的影響，部分被基於績效的薪酬費用的增長所抵消。 23 財年第二季度毛利率的提高主要反映了我們的售後更換零件和特殊產品產品線的淨銷售額增加。

The Flight Support Group's operating margin improved to 25.5% in the second quarter of fiscal '23, up from 21.6% in the second quarter of fiscal '22. The operating margin increase in the second quarter of fiscal '23 principally reflects the previously mentioned improved gross profit margin and decreased SG&A expense as a percentage of net sales, mainly reflecting the previously mentioned amendment and termination of a contingent consideration agreement, partially offset by higher performance-based compensation expense.

Flight Support Group 的營業利潤率從 22 財年第二季度的 21.6% 提高到 23 財年第二季度的 25.5%。 23 財年第二季度的營業利潤率增長主要反映了前面提到的毛利率提高和 SG&A 費用占淨銷售額的百分比下降，主要反映了前面提到的或有對價協議的修訂和終止，部分被較高的所抵消基於績效的補償費用。

Now, I would like to introduce Victor Mendelson, Co-President of HEICO and President of HEICO's Electronic Technologies Group, to discuss the second quarter results of the Electronic Technologies Group.

現在，我想介紹一下HEICO聯席總裁兼HEICO電子技術集團總裁Victor Mendelson，討論一下電子技術集團第二季度的業績。

Thank you, Eric. The Electronic Technologies Group's net sales increased 27% to a record $301.8 million in the second quarter of fiscal '23, up from $237.4 million in the second quarter of fiscal '22. The net sales increase principally reflects the impact from our fiscal '23 and '22 acquisitions as well as increased net sales of our other electronics, aerospace and space products, offset by decreased defense products' net sales.

謝謝你，埃里克。電子技術集團的淨銷售額在 23 財年第二季度增長了 27%，達到創紀錄的 3.018 億美元，高於 22 財年第二季度的 2.374 億美元。淨銷售額的增長主要反映了我們 23 財年和 22 財年收購的影響，以及我們其他電子、航空航天和航天產品淨銷售額增加的影響，這些影響被國防產品淨銷售額的下降所抵消。

The Electronic Technologies Group's operating income increased 3% to $68 million in the second quarter of fiscal '23, up from $66 million in the second quarter of fiscal '22. The increase in operating income principally reflects the previously mentioned high net sales volume partially offset by a lower gross profit margin and lower efficiency levels, mainly resulting from the impact of our January '23 acquisition. The lower gross profit margin in the second quarter of fiscal '23 principally reflects decreased net sales of defense products, partially offset by net sales increases of our other electronics and aerospace products.

電子技術集團的營業收入在 23 財年第二季度增長 3% 至 6800 萬美元，高於 22 財年第二季度的 6600 萬美元。營業收入的增加主要反映了前面提到的高淨銷售額，部分被較低的毛利率和較低的效率水平所抵消，這主要是由於我們 23 年 1 月收購的影響。 23 財年第二季度較低的毛利率主要反映了國防產品淨銷售額的下降，部分被我們其他電子和航空航天產品的淨銷售額增長所抵消。

The Electronic Technologies Group's operating margin was 22.5% in the second quarter of fiscal '23 as compared to 27.8% in the second quarter of fiscal '22. Keeping in mind that the ETG's noncash amortization is about 5 percentage points, this performance equates to what we consider to be the real operating margin metrics by which to measure a business of around 27.5%, which is a strong performance at the operating level and consistent with my prior comments about the rough range where I expected our margins to be. The lower yet strong operating margin principally reflects the previously-mentioned lower gross profit margin and increased SG&A expenses as a percentage of net sales, mainly from the previously-mentioned lower efficiencies.

電子技術集團 23 財年第二季度的營業利潤率為 22.5%，而 22 財年第二季度為 27.8%。請記住，ETG 的非現金攤銷約為 5 個百分點，這一表現相當於我們認為衡量業務的實際營業利潤率指標約為 27.5%，這在運營層面表現強勁且始終如一加上我之前對我預期利潤率的粗略範圍的評論。較低但強勁的營業利潤率主要反映了前面提到的較低的毛利率和增加的 SG&A 費用占淨銷售額的百分比，主要是由於前面提到的較低的效率。

Our Defense sales remained lower than the prior year, as anticipated and as I discussed on our last earnings call. This overall reduced operating margin, despite the strong sales increases of our other electronics and aerospace products.

正如我在上次財報電話會議上所討論的那樣，我們的國防銷售額仍低於上一年。儘管我們的其他電子產品和航空航天產品的銷售額增長強勁，但整體營業利潤率有所下降。

In a little more detail on those sales, our Commercial Aviation sales and backlog have been particularly strong, and I would expect that to continue for some time. Sales of our other high-end electronic components have been healthy, though I still expect some softening in those markets overall as the year wears on. Our Commercial Space sales grew, and overall, we have a good products backlog, though deliveries are not linear over the course of the year.

關於這些銷售的更多細節，我們的商業航空銷售和積壓訂單特別強勁，我希望這種情況會持續一段時間。我們其他高端電子元件的銷售一直很健康，但我仍然預計隨著時間的推移這些市場總體上會有所疲軟。我們的商業空間銷售額有所增長，總體而言，我們有良好的產品積壓，儘管交付量在一年中不是線性的。

Exxelia, our largest ETG acquisition, has performed in line with our expectations so we are very happy with this acquisition. But as we've often explained, Exxelia's operating margins are lower than the average ETG segment margin -- operating margin. And consistent with our prior comments, we expect -- we continue to anticipate that Exxelia will reduce the consolidated average ETG operating margin by approximately 2 percentage points going forward.

Exxelia 是我們最大的 ETG 收購，其表現符合我們的預期，因此我們對此次收購感到非常滿意。但正如我們經常解釋的那樣，Exxelia 的營業利潤率低於 ETG 部門的平均營業利潤率——營業利潤率。並且與我們之前的評論一致，我們預計 - 我們繼續預計 Exxelia 將在未來將綜合平均 ETG 營業利潤率降低約 2 個百分點。

On supply chain, we continue to make progress in reducing our sales that have been delayed due to supply issues, with our subsidiaries now estimating that amount fell below $30 million, even into the mid- to low $20 million [if one strips] out Exxelia. The majority of our businesses tell us that overall supply conditions are either the same as or better than they were, and they anticipate continued, though uneven improvement throughout the year.

在供應鏈方面，我們在減少因供應問題而延遲的銷售額方面繼續取得進展，我們的子公司現在估計該金額已降至 3000 萬美元以下，如果不考慮 Exxelia，甚至達到 2000 萬美元的中低水平.我們的大多數企業告訴我們，總體供應狀況與以前相同或更好，他們預計全年會持續改善，但改善不均衡。

Of course, we remain very confident in the ETG's outlook, both long and short term, as our ETG companies are a remarkable and irreplaceable set of businesses that are managed by gifted leaders and filled with talented team members. Further, given the combination of the ETG's record backlog, the overall expected delivery timing for that backlog and anticipated orders, we expect our Defense Product net sales to start to increase within the next year. Though, of course, we can never be certain of the timing and exact sales levels.

當然，我們仍然對 ETG 的長期和短期前景充滿信心，因為我們的 ETG 公司是一組卓越且不可替代的企業，由才華橫溢的領導者管理，並擁有才華橫溢的團隊成員。此外，考慮到 ETG 創紀錄的積壓訂單、積壓訂單的總體預期交付時間和預期訂單，我們預計我們的國防產品淨銷售額將在明年開始增長。當然，我們永遠無法確定時間和確切的銷售水平。

I'll turn the call back to Larry Mendelson.

我會把電話轉回拉里門德爾森。

Thank you, Victor. As we look ahead to the remainder of fiscal '23, we continue to anticipate net sales growth in both the FSG and ETG groups, principally driven by demand for the majority of our products. Additionally, continued inflationary pressures and lingering supply chain disruptions stemming from the COVID-19 pandemic may lead to higher material and labor costs. During fiscal '23, we plan to continue our commitments to developing new products and services, further market penetration and an aggressive acquisition strategy while maintaining our financial strength and flexibility.

謝謝你，維克多。展望 23 財年的剩餘時間，我們繼續預計 FSG 和 ETG 集團的淨銷售額將增長，這主要是由對我們大部分產品的需求推動的。此外，由 COVID-19 大流行引起的持續通脹壓力和揮之不去的供應鏈中斷可能會導致更高的材料和勞動力成本。在 23 財年期間，我們計劃繼續致力於開發新產品和服務、進一步的市場滲透和積極的收購戰略，同時保持我們的財務實力和靈活性。

We believe that our ongoing conservative policies, a strong balance sheet and a high degree of liquidity enables us to continuously invest in new research and development and to take advantage of periodic strategic inventory purchasing opportunity, as well as executing on our successful acquisition program. All these collectively position HEICO for continued growth and market share gains.

我們相信，我們持續的保守政策、強大的資產負債表和高度的流動性使我們能夠不斷投資於新的研發，利用定期戰略庫存採購機會，以及執行我們成功的收購計劃。所有這些共同為 HEICO 奠定了持續增長和市場份額增長的基礎。

In closing, I would again like to thank our incredible team members for their continued support and commitment to HEICO. Their persistent drive and determination to win in the marketplace has resulted in another quarter of outstanding results, and we thank you for all that you do to make HEICO a great company.

最後，我要再次感謝我們出色的團隊成員對 HEICO 的持續支持和承諾。他們在市場上取勝的不懈努力和決心帶來了另外四分之一的出色業績，我們感謝你們為使 HEICO 成為一家偉大的公司所做的一切。

I would now like to open the floor for questions.

我現在想開始提問。

(Operator Instructions)

（操作員說明）

And we'll take our first question from Rob Spingarn with Melius Research.

我們將從 Rob Spingarn 和 Melius Research 提出我們的第一個問題。

First, congratulations on the Wencor deal. I have a couple of questions on that.

首先，祝賀 Wencor 達成交易。我有幾個問題。

So Eric, if it's okay, if I could just start with you. I wanted to ask if you could perhaps offer some color on the differences between the 2 companies' PMA, distribution and component repair businesses, and how those complement one another?

埃里克，如果可以的話，我可以從你開始。我想問您是否可以就這兩家公司的 PMA、分銷和零部件維修業務之間的差異提供一些顏色，以及它們如何相互補充？

Great. Rob. I would be happy to. We're very, very excited about the Wencor deal because of the complementary nature of the transaction. If you look at their various businesses, their product lines really complement HEICO's very well. HEICO started out over in the PMA area focused on engine parts, Wencor has focused on non-engine parts. HEICO also does non engine parts, but there actually is very little similarity in the product that we do. And as a matter of fact, the HEICO component repair stations purchased all of the Wencor PMAs because HEICO doesn't offer those PMAs. So we're very excited about the complementary nature there.

偉大的。搶。我很樂意。由於交易的互補性，我們對與 Wencor 的交易感到非常、非常興奮。如果你看看他們的各種業務，他們的產品線確實可以很好地補充 HEICO。 HEICO 開始在 PMA 領域專注於發動機零件，Wencor 則專注於非發動機零件。 HEICO 也做非發動機零件，但實際上我們做的產品幾乎沒有相似之處。事實上，HEICO 組件維修站購買了所有 Wencor PMA，因為 HEICO 不提供這些 PMA。所以我們對那裡的互補性感到非常興奮。

With regard to component repair, Wencor overhauls a lot of components and is in a lot of market niches where HEICO is not in, so we think that that's going to broaden us. And then likewise, in distribution, we focus in different areas. Wencor is, for example, has a very large position over in the bearings area whereas HEICO basically doesn't -- isn't involved in the bearings business.

關於組件維修，Wencor 對很多組件進行大修，並且在 HEICO 不在的許多市場利基市場中，因此我們認為這將擴大我們的範圍。同樣，在分銷方面，我們關注不同的領域。例如，Wencor 在軸承領域擁有非常大的地位，而 HEICO 基本上沒有——不涉及軸承業務。

So we think that overall, this is going to permit HEICO to become a more efficient and stronger competitor by giving more products to our customers at lower prices, so we're very excited about it.

所以我們認為，總的來說，這將使 HEICO 以更低的價格向我們的客戶提供更多的產品，從而成為一個更有效率、更強大的競爭對手，所以我們對此感到非常興奮。

And so Eric, this isn't -- based on what you just said, this isn't just additive putting the 2 together, but it sounds like there's a pretty decent cross-selling opportunity where Wencor's customers can buy some more HEICO parts and the opposite.

所以埃里克，這不是——根據你剛才所說的，這不僅僅是將兩者放在一起，但聽起來這是一個相當不錯的交叉銷售機會，Wencor 的客戶可以購買更多的 HEICO 零件和相反。

Absolutely. We feel very, very strongly about that. There's a whole product line that HEICO doesn't offer that we're going to now be able to offer to the airlines, and frankly, give them more choice, greater opportunity, greater savings, and it's really going to work out very well. Also, Wencor's got a whole set of manufacturers that makes product for them, and frankly, a lot of those manufacturers, I think can also make product for HEICO as well and vice versa. So we think it's really going to create a tremendous amount of efficiencies.

絕對地。我們對此感覺非常非常強烈。 HEICO 沒有提供的整個產品線我們現在可以提供給航空公司，坦率地說，給他們更多的選擇，更多的機會，更多的節省，而且它真的會很好地運作。此外，Wencor 有一整套為他們生產產品的製造商，坦率地說，我認為很多這些製造商也可以為 HEICO 生產產品，反之亦然。所以我們認為它真的會創造巨大的效率。

And sort of lastly, HEICO has focused over the years more on, I would say, the airline market. Yes, we serve independent repair stations and brokers and smaller customers. But Wencor really has a world-class e-commerce system, e-commerce platform, which I think is going to be a really great value to our customers. So I mean, I know that our component repair stations' like buying parts from Wencor, so I think that as we bring the best that both companies have to offer, I think it's really going to be good for our customers.

最後，HEICO 多年來更多地關注航空市場。是的，我們為獨立維修站和經紀人以及較小的客戶提供服務。但 Wencor 確實擁有世界一流的電子商務系統、電子商務平台，我認為這將對我們的客戶產生巨大的價值。所以我的意思是，我知道我們的組件維修站喜歡從 Wencor 購買零件，所以我認為當我們帶來兩家公司必須提供的最好產品時，我認為這對我們的客戶真的有好處。

Okay. And just to close the loop on this, Eric. I think normally, HEICO or FSG does about 300 to 500 new PMAs annually, get added to the catalog. I'm not sure what that equivalent number would be for Wencor. But should we assume that the pace of product development in addition to the catalog won't change for either company? Or is there a different answer there?

好的。埃里克，只是為了結束這個循環。我認為通常情況下，HEICO 或 FSG 每年會做大約 300 到 500 個新的 PMA，並添加到目錄中。我不確定 Wencor 的等效數字是多少。但是我們是否應該假設兩家公司的產品開發速度和產品目錄都不會改變？或者那裡有不同的答案？

Correct. I would say that it would definitely not go down, and it would probably go up as our -- as we offer -- as we've got a more fulsome product line to offer to our customers. I think that there's going to be additional development opportunities, yes, so we view it very much as additive.

正確的。我會說它絕對不會下降，而且它可能會像我們提供的那樣上升，因為我們有更豐富的產品線可以提供給我們的客戶。我認為會有額外的發展機會，是的，所以我們非常認為它是附加的。

And in today's market, obviously, labor is very tight. We've got a great workforce. Wencor has got a great workforce. We share -- our DNA is very, very similar. Companies that view themselves as small compared to the very large companies in the industry, and we're really very much focused on product quality, turn time, service and pricing. And I think that there's -- it's really a great, great marriage. And frankly, something that we've all wanted to do for quite a long time, and I'm just happy that we are able to get it done.

顯然，在今天的市場上，勞動力非常緊張。我們擁有一支優秀的員工隊伍。 Wencor 擁有一支優秀的員工隊伍。我們共享——我們的 DNA 非常非常相似。與行業中非常大的公司相比，那些認為自己很小的公司，我們真的非常關注產品質量、周轉時間、服務和定價。而且我認為有 - 這真的是一場非常非常棒的婚姻。坦率地說，這是我們長期以來都想做的事情，我很高興我們能夠完成它。

Rob, this is Larry. As a comment to summarize, we really believe that this combination is a great win for our customers because with expanded capacity and we believe that we'll be able to offer customers better pricing, lower pricing, more products and more efficiency. So we look at it not so much as a win for HEICO and Wencor, which I think it will be, but really a big win for the customers and the industry. As you know, HEICO exists because its pricing is below the OEM, and that's the reason that they buy our products, we're 30%, 40% below. And this will give us the capacity to give even more value.

羅伯，這是拉里。作為總結的評論，我們真的相信這種組合對我們的客戶來說是一個巨大的勝利，因為隨著產能的擴大，我們相信我們將能夠為客戶提供更好的價格、更低的價格、更多的產品和更高的效率。所以我們認為這不是 HEICO 和 Wencor 的勝利，我認為這將是，但對於客戶和行業來說確實是一個巨大的勝利。如您所知，HEICO 之所以存在，是因為它的定價低於 OEM，這就是他們購買我們產品的原因，我們比我們低 30%、40%。這將使我們有能力提供更多價值。

Larry, Eric, thank you very much.

拉里、埃里克，非常感謝你們。

Victor, Carlos, I had a couple for you, but I'll step aside.

維克多，卡洛斯，我有幾個要給你，但我會退到一邊。

Thank you, Rob.

謝謝你，羅布。

We'll take our next question from Peter Arment with Baird.

我們將與 Baird 一起接受 Peter Arment 的下一個問題。

Larry, Eric, Victor, Carlos. Victor, maybe I can just start with you. ETG margins are now kind of fully reflecting the inclusion of Exxelia. How should we think about the progression from margins to go back towards kind of the 27%, you mentioned the 200 basis points or the 2% kind of impact, but how are you thinking about that progression back?

拉里、埃里克、維克多、卡洛斯。維克多，也許我可以從你開始。 ETG 利潤率現在在某種程度上充分反映了 Exxelia 的納入。我們應該如何考慮從利潤率回到 27% 的進展，你提到了 200 個基點或 2% 的影響，但你如何看待這種進展？

Yes. Peter, this is Victor. It's a good question. Right now, I'm keeping our assumptions within close distance of where we are. I think you probably know, we're always fairly consistent -- excuse me, conservative when it comes to this. I do believe that as some of our defense products pick up later this year, first part of next year, which tend to be higher margin, that it should bring the margins north of where we are. But I'm more comfortable right now saying that we'll stick where we are.

是的。彼得，這是維克多。這是個好問題。現在，我將我們的假設保持在我們所處位置的近距離內。我想你可能知道，我們總是相當一致——對不起，在這方面是保守的。我確實相信，隨著我們的一些國防產品在今年晚些時候回升，明年上半年，利潤率往往更高，這應該會使利潤率高於我們現在的水平。但我現在更願意說我們會堅持我們的現狀。

But you've always kind of heard me say that I think within more or less 10% of where we are is a healthy zone. Now of course, that excludes acquisitions, right? So acquisitions could change that materially, depending on what (inaudible).

但你總是聽我說，我認為我們所在位置的 10% 或多或少是健康區域。當然，這不包括收購，對吧？因此，收購可能會從根本上改變這一點，具體取決於什麼（聽不清）。

Yes, that's helpful. And then, Eric, just another one on margins. Just -- it seems like the March performance here continues to be incredibly impressive at FSG, but you mentioned the elimination of contingent agreements. Maybe just a clarification that -- how big was that? You said it was partially offset by stock comp. And just how do we think about kind of FSG margins here going forward? I know excluding Wencor, but just you've had really strong performance post-COVID. Just any clarification there would be helpful.

是的，這很有幫助。然後，埃里克，只是另一個利潤率。只是 - 似乎 3 月份的表現在 FSG 上仍然令人印象深刻，但你提到了取消或有協議。也許只是澄清——那有多大？你說它被股票補償部分抵消了。我們如何看待未來的 FSG 利潤率？我知道不包括 Wencor，但只有你在 COVID 後表現非常強勁。任何澄清都會有所幫助。

Peter, this is Carlos. I'll take that one. The earnout on the 2021 acquisition, that was basically 2 tranches of earnout that we were going to pay, subject to operating performance levels. The company that has those earnouts with the prior owners, we believe more than likely would have made that earnout. We have probability weighted, the likelihood of that outcome to be a success for them. The seller requested a mechanism to get him his earnout sooner, and what we want up doing was renegotiating the earnout structure and paying them the $9 million of earnout basically this quarter versus paying it to them over the next -- I think the first tranche would have been done at the end of next year and the second tranche at the end of '26.

彼得，這是卡洛斯。我會拿那個。 2021 年收購的收益，基本上是我們要支付的兩筆收益，具體取決於經營業績水平。與先前的所有者有這些收益的公司，我們相信很可能會賺到錢。我們有概率加權，結果對他們來說是成功的可能性。賣家要求一種機制，讓他盡快獲得收益，而我們想要做的是重新協商收益結構，並基本上在本季度向他們支付 900 萬美元的收益，而不是在下一個季度支付給他們——我認為第一筆付款會已經在明年年底完成，第二批在 26 年底完成。

So they basically monetized the earnout today and gave up the upside on the back end. I think the earnout would have been -- the first tranche, $9 million, second tranche $18 million, so he took $9 million or basically $27 million in possible earnings. And we thought that was a good deal for our shareholders, a good deal for the -- our partner, the owners of the company we bought, and that's how it all came about.

因此，他們今天基本上將收益貨幣化，並放棄了後端的上行空間。我認為收益應該是——第一筆 900 萬美元，第二筆 1800 萬美元，所以他獲得了 900 萬美元或基本上 2700 萬美元的可能收益。我們認為這對我們的股東來說是一筆好交易，對我們的合作夥伴、我們收購的公司的所有者來說也是一筆好交易，這就是這一切的由來。

And also just to add, the proposal to do this was from the -- from our partners, so this wasn't that HEICO initiated for both. So our partner came to us with the suggestion. We said, sure. If that's what you want to do, we're happy to go ahead and do it. Company is performing extremely well, and we couldn't be happier with it and with our partners over there. So it's I think, as Carlos said, a win-win.

還要補充一點，這樣做的提議來自我們的合作夥伴，所以這不是 HEICO 為兩者發起的。所以我們的合作夥伴向我們提出了建議。我們說，當然。如果那是你想做的，我們很樂意繼續去做。公司表現非常好，我們對它和我們在那裡的合作夥伴感到非常高興。所以我認為，正如卡洛斯所說，這是雙贏的。

And then you also asked with regard to the margin. So post-COVID, HEICO has done very well. I think that we have shown to our customers that we started out as a very small company, and everybody's heard me say this 100 times. When you start out very small, you've got to make sure that you keep your customers happy. It's sort of obvious because if you don't do that, you're out of business. And we -- due to our approach of having inventory, we had inventory on the shelf and when, frankly, others ran out of inventory. And we continue to keep our people. We continue to work with the customers, and we added product lines, we added new parts. And as a result, we're doing really, really well. We also shrunk our footprint a little bit as a result of COVID due to some changes in the market, and I think we've become a lot more efficient.

然後您還詢問了保證金。所以在 COVID 之後，HEICO 做得很好。我認為我們已經向我們的客戶表明，我們最初是一家非常小的公司，而且每個人都聽我說過 100 遍了。當您從很小的規模開始時，您必須確保讓客戶滿意。這很明顯，因為如果你不這樣做，你就會倒閉。而且我們——由於我們的庫存方法，我們在貨架上有庫存，坦率地說，當其他人的庫存用完時。我們將繼續留住我們的員工。我們繼續與客戶合作，我們增加了產品線，我們增加了新零件。結果，我們做得非常非常好。由於市場的一些變化，由於 COVID，我們也縮小了我們的足跡，我認為我們已經變得更有效率了。

So all of this coming through, I mean, obviously, the $9 million isn't going to repeat. But even if you pull that out, the operating margin was above 23%, which is really very, very good. And again, that's in a period of time where we're making our customers happy and supplying parts to them and expanded product line at very, very competitive prices.

所以所有這一切都通過了，我的意思是，顯然，900 萬美元不會重複。但即使你把它拿出來，營業利潤率也在 23% 以上，這真的非常非常好。再一次，那是在我們讓客戶滿意並以非常非常有競爭力的價格向他們提供零件並擴展產品線的時期。

So I really have to hand it to our team because frankly, in the corporate office, we just sort of make the acquisitions. But the folks in the field were the ones who figured out how to do this, and the numbers just roll up where they do. We don't tell them where to be. It's just that's what comes out of the machine at the end of the day. So I really have to commend them for this.

所以我真的必須把它交給我們的團隊，因為坦率地說，在公司辦公室，我們只是進行收購。但是該領域的人是想出如何做到這一點的人，而且數字只是在他們所做的地方累積起來。我們不告訴他們去哪裡。這就是一天結束時從機器中出來的東西。所以我真的要為此表揚他們。

Appreciate all the color, and congrats on Wencor.

欣賞所有顏色，並祝賀 Wencor。

Our next question comes from Larry Solow with CJS Securities.

我們的下一個問題來自 CJS 證券公司的 Larry Solow。

Great. Congrats on a really strong quarter.

偉大的。祝賀一個非常強勁的季度。

Maybe, Eric, we'll stick with you and just maybe some -- a little more color just on -- just on the Commercial Aviation. Just your markets, obviously, you grew 20% this quarter, and I think that was on top of like close to 25% organic growth in Q2 last year at 23%. We've recovered pretty much from COVID, I guess, or at least a narrow body, right, has recovered. Maybe you can give us a little color, narrow-body versus wide-body? And just recovery from COVID? Where we're going from here? Have you seen any change in order patterns or airlines holding more or less inventory? Any color there too would be great.

也許，埃里克，我們會堅持你，也許只是一些——只是在商業航空上多一點顏色。很明顯，就你的市場而言，本季度你增長了 20%，我認為這是在去年第二季度接近 25% 的有機增長 23% 之上。我想我們已經從 COVID 中恢復了很多，或者至少是一個狹窄的身體，對，已經恢復了。也許你可以給我們一些顏色，窄體與寬體？只是從 COVID 中恢復過來？我們從這裡去哪裡？您是否看到訂單模式有任何變化或航空公司持有更多或更少的庫存？那裡的任何顏色都會很棒。

Larry, thanks. I'd be happy to answer that.

拉里，謝謝。我很樂意回答這個問題。

The sales -- the organic sales growth has really been, frankly, amazing. In Flight Support, we just had our eighth quarter of organic growth over 20%. So the one thing to have 4 quarters where you bounce back, but it's [at eighth]. And the numbers are, frankly, surprised me to the upside every single quarter, and there's a lot of strength out there.

銷售 - 坦率地說，有機銷售增長確實令人驚嘆。在飛行支持方面，我們剛剛實現了第八季度超過 20% 的有機增長。所以有 4 個季度你反彈是一回事，但它是 [第八]。坦率地說，每個季度的數字都讓我感到驚訝，而且那裡有很多力量。

I think that the airlines are getting ready for summer season. They know that it's going to be really tough this summer. Everybody wants to fly, whether it's for leisure or business. And they are very, very conscientious and very focused to make sure that they complete those that fly. And so as a result, they make sure that they've got the inventory.

我認為航空公司正在為夏季做好準備。他們知道今年夏天會非常艱難。每個人都想坐飛機，無論是為了休閒還是商務。他們非常非常認真，非常專注，以確保他們完成那些會飛的任務。因此，他們確保他們有庫存。

I keep on asking our people, I meet quarterly with our sales leaders and I want to understand where we are. And they just see, frankly, continued strength. So Asia was -- it is the last region, if you will, to recover. A widebody is also the last of the fleet type to recover. But we see added interest in the stuff that we're doing, so we're able to bring on additional principles and develop additional parts and repairs. And I think it just in general, speaks to the market. I mean, ultimately, there will be a slowdown. We can't continue at this pace forever, and -- but I'm still very, very bullish that even when that slowdown or a little (inaudible), which again, we don't see on the horizon right now. Even after that occurs, we're going to continue to ride right through this just as we had in the past. It's like impossible at a time -- impossible to time these things, and that's why we're so committed to the market.

我不斷詢問我們的員工，我每季度與我們的銷售主管會面，我想了解我們的情況。坦率地說，他們只是看到了持續的力量。所以亞洲——如果你願意的話，它是最後一個恢復的地區。寬體機也是最後恢復的機隊類型。但是我們看到人們對我們正在做的事情越來越感興趣，所以我們能夠引入更多的原則並開發更多的零件和維修。我認為這只是一般的，對市場說話。我的意思是，最終會出現放緩。我們不能永遠以這種速度繼續下去，而且——但我仍然非常、非常樂觀地認為，即使放緩或有一點（聽不清），我們現在也沒有看到。即使發生這種情況，我們也會像過去一樣繼續渡過難關。這就像一次不可能——不可能為這些事情計時，這就是我們如此致力於市場的原因。

Got it. And I have just a follow-up just on the margin question, and Carlos can chime in. I think your margins ex the onetime benefit, like, for the segment year-to-date or in the first 2 quarters, close to 23%. Carlos, just how should we look at that going forward? Feel like you're operating close to -- all cylinders are close to it. Is this a high watermark? Should we tail back a little bit as you look out over the next couple of quarters and even now? Just your feeling on that.

知道了。我只是跟進了利潤率問題，Carlos 可以插話。我認為你的利潤率不包括一次性收益，比如，對於今年迄今為止或前兩個季度的細分市場，接近 23% .卡洛斯，我們應該如何看待未來？感覺就像您在接近 - 所有氣瓶都接近它。這是高水印嗎？在您展望未來幾個季度甚至現在時，我們是否應該稍微後退一點？只是你的感覺。

I mean, look, it's -- intention not giving guidance, so be careful about what I say. But I do think that we are in a circumstance right now in the business environment where the segment is performing extraordinarily well. You've got high growth, you've got good product mix, so we would love this to continue. And I think that if we're -- I think where we fall out candidly is between maybe '22 and '23 as a run rate type segment margin. But I don't want to make too many promises right now because we still have to settle into our footprint from the disruptions that were caused by COVID.

我的意思是，你看，它是——不是提供指導的意圖，所以要小心我說的話。但我確實認為，我們現在所處的商業環境中，該部門表現非常出色。你有高增長，你有良好的產品組合，所以我們希望這種情況繼續下去。而且我認為，如果我們 - 我認為我們坦率地失敗的地方可能是 '22 和 '23 作為運行率類型的細分利潤率。但我現在不想做出太多承諾，因為我們仍然需要從 COVID 造成的破壞中適應我們的足跡。

Got it. Great. I appreciate that color. .

知道了。偉大的。我很欣賞那種顏色。 .

We'll take our next question from Pete Skibitski with Alembic Global.

我們將接受來自 Alembic Global 的 Pete Skibitski 的下一個問題。

I guess maybe for Victor, ETG. Victor, just within Defense, obviously, there's been some supply chain issues. But kind of beyond supply chain, are you seeing areas where your Defense sales are strong, some areas where it's weak? Is it just kind of a timing mismatch right now in terms of what the Pentagon is prioritizing for purchases?

我想也許是維克多，ETG。維克多，在國防部內部，顯然存在一些供應鏈問題。但是在供應鏈之外，您是否看到您的國防銷售強勁的領域，以及它薄弱的領域？就五角大樓的採購優先順序而言，這只是一種時間不匹配嗎？

Yes, this is Victor. So the answer is yes, and it's not unusual for us to have a variety of results in different businesses. It's maybe a little more pronounced between some of our higher and lower margin products and businesses now than it has been at other times. In some cases, we have backlog, but delivery is not due yet. In some cases, we're expecting some large orders, some of whom -- some of which have been delayed. Others are for foreign military use to maybe U.S. customers, or they may even go through the DoD, like FMS or things of that nature. So that's why we tend to have that optimism as we get a little bit further out.

是的，這是維克托。所以答案是肯定的，而且我們在不同的業務中有各種各樣的結果並不罕見。現在我們的一些利潤率較高和較低的產品和業務之間的關係可能​​比以往任何時候都更加明顯。在某些情況下，我們有積壓訂單，但交貨尚未到期。在某些情況下，我們期待一些大訂單，其中一些 - 其中一些已被延遲。其他的可能供美國客戶用於外國軍事用途，或者他們甚至可能通過國防部，如 FMS 或類似性質的東西。所以這就是為什麼當我們走得更遠時，我們往往會保持樂觀。

But it is, as you pointed out, this is a little bit of a mixed bag, which is not terribly unusual for us.

但正如您所指出的，這有點魚龍混雜，這對我們來說並不罕見。

You don't feel like you've lost any market share? Or the competition has gotten particularly intense amongst suppliers?

你不覺得你失去了任何市場份額嗎？還是供應商之間的競爭變得特別激烈？

Yes, definitely not. We feel strongly we haven't ceded market share on any products or programs. It's more, in a sense, what they're buying at the particular moment. But we feel pretty good about the backlog and the orders and the order estimates going forward.

是的，絕對不是。我們強烈認為我們沒有放棄任何產品或程序的市場份額。從某種意義上說，這更多的是他們在特定時刻購買的東西。但我們對未來的積壓訂單和訂單以及訂單估計感到非常滿意。

But again, I'm not anticipating it as a next quarter change or even necessarily the quarter after that. I think it goes a little further and deeper into time based on when I look at our backlogs, our delivery schedules and some of the orders that we're anticipating.

但同樣，我不認為這是下一個季度的變化，甚至不一定是之後的一個季度。根據我查看我們的積壓訂單、交貨時間表和我們預期的一些訂單，我認為時間會更進一步和更深入。

Okay. So am I right, when you guys talk about Exxelia being 2 points of headwind, I think from a core perspective and some modest increase in amortization. So it still seems maybe you're down a couple of points year-over-year in underlying core margin at ETG, and so is that basically all mix essentially? So you really need defense mix to recovering ETG to get back to kind of the core level of margin that you did in the past year or 2? Is that the right way to think about it?

好的。所以我是對的，當你們談論 Exxelia 是 2 點逆風時，我認為從核心角度和攤銷的適度增加。所以看起來你在 ETG 的基礎核心利潤率上同比下降了幾個點，所以這基本上都是混合的嗎？所以你真的需要防禦組合來恢復 ETG 以恢復到你在過去一兩年所做的核心利潤水平嗎？這是正確的思考方式嗎？

That's a good way to think about it. I think that's right. Or mix on some of the other higher-margin products that we have.

這是一個很好的思考方式。我認為這是對的。或者混合我們擁有的其他一些利潤率更高的產品。

Okay. Thanks, guys.

好的。多謝你們。

It doesn't have to be defense. Well, I think it's defense weighted.

不一定要防禦。好吧，我認為這是防禦加權的。

We'll take our next question from Kristine Liwag with Morgan Stanley.

我們將與摩根士丹利一起接受 Kristine Liwag 的下一個問題。

With the recent acquisition, once you complete this, I think Laurans, you mentioned that you expect net debt to EBITDA to be below 3x. But this leverage is still higher than where you've historically operated. How do you think about the debt load for the business going forward? I mean, when you look at the other main after -- commercial since aftermarket player, I mean, they could lever up as much as 7x net debt to EBITDA. So one, is this kind of the 3x as the new normal? Or do you anticipate to go where you've historically operated at below 1x? Or does this give you appetite for even further leverage, maybe not as much as 7x but maybe higher than 3x?

通過最近的收購，一旦你完成了這件事，我想 Laurans，你提到你預計 EBITDA 的淨債務將低於 3 倍。但這種槓桿作用仍然高於你過去經營的地方。您如何看待企業未來的債務負擔？我的意思是，當你看看其他主要的售後市場玩家後——商業化之後，我的意思是，他們可以將 EBITDA 的淨債務增加 7 倍。那麼，這種 3x 是新常態嗎？或者您是否預計會去您歷史上以低於 1 倍的價格運營的地方？還是這會讓您對進一步的槓桿產生興趣，可能不超過 7 倍但可能高於 3 倍？

So to answer that question, first of all, I want to emphasize that according to our projections, when we closed this transaction, Wencor, our debt-to-EBITDA will be under 3x. I think the number is 2.8x or 2.7x, Carlos?

所以要回答這個問題，首先，我想強調，根據我們的預測，當我們完成這筆交易時，Wencor，我們的債務與 EBITDA 的比率將低於 3 倍。我認為這個數字是 2.8 倍或 2.7 倍，卡洛斯？

Yes. Net-net.

是的。淨淨。

Net-net will be under 3x. The reason that we insisted upon giving HEICO A shares in the transaction was the purpose to keep the leverage under 3x. HEICO has never been a highly -- as you mentioned, never been a highly leveraged company. Until now, we've never been above 2x. We've been below. Our projections show that within a year, we expect to be slightly below 2x again. So to answer your question, at this point, we are not thinking about becoming a highly leveraged company at 6x or 7x. We felt that taking leverage on at under 3x and being able to reduce it within approximately 1 year below 2x is consistent with our past practices of being very conservative on the leverage side.

Net-net 將低於 3 倍。我們堅持在交易中給予海科A股的原因是為了將槓桿率控制在3倍以下。正如你提到的，HEICO 從來都不是一家高槓桿公司。到目前為止，我們從未超過 2 倍。我們一直在下面。我們的預測顯示，在一年內，我們預計會再次略低於 2 倍。所以回答你的問題，在這一點上，我們並沒有考慮成為一家 6 倍或 7 倍的高槓桿公司。我們認為，將槓桿率控制在 3 倍以下，並能夠在大約 1 年內將其降至 2 倍以下，這與我們過去在槓桿方面非常保守的做法是一致的。

So the other thing that I want to point out that we don't give guidance, but we do tell the [Street] that we project. We try to grow 15% to 20% bottom line on an annual basis in this compound. We have done that pretty consistently for the past 30 years, and according again to our projections, we believe that we will be able to, in '24, grow within that 15% to 20% increase.

所以我想指出的另一件事是我們不提供指導，但我們確實告訴了我們計劃的 [Street]。我們試圖在這個化合物中每年增加 15% 到 20% 的底線。在過去的 30 年裡，我們一直在這樣做，並且再次根據我們的預測，我們相信我們將能夠在 24 年實現 15% 到 20% 的增長。

Now of course, everything is dependent upon market conditions and everything else. But based on everything we know today, this acquisition will permit us to continue to compound at least in '24, and our leverage will be below 2x when we get to the end of '24. So I presume that we will continue to make smaller acquisitions as long as the leverage does not go up.

當然，現在一切都取決於市場條件和其他一切。但根據我們今天所知道的一切，這次收購將使我們至少在 24 年繼續複利，到 24 年末，我們的槓桿率將低於 2 倍。因此，我認為只要槓桿率不上升，我們就會繼續進行規模較小的收購。

So I don't know, does that answer your question?

所以我不知道，這是否回答了您的問題？

Yes, it does.

是的，它確實。

Our next question from Pete Osterland with Truist Securities.

我們的下一個問題來自 Pete Osterland 和 Truist Securities。

I'm on for Mike Ciarmoli this morning. First, I just wanted to ask one on the Wencor acquisition. Given that historically you've operated acquired companies on more of a stand-alone basis, how are you thinking about the integration of Wencor into HEICO? Are there any preparations you're making that you can talk about that are perhaps different than for some of the acquisitions you've made in the past?

今天早上我要去 Mike Ciarmoli。首先，我只想問一個關於 Wencor 收購的問題。鑑於從歷史上看，您更多地是在獨立的基礎上運營被收購的公司，您如何考慮將 Wencor 整合到 HEICO 中？您是否正在做任何可以談論的準備工作，這些準備工作可能與您過去進行的某些收購有所不同？

Yes. It's a great question, and something we've been thinking about quite a bit. Wencor is a very, very well-run company, and they've got tremendous asset in their people. So frankly, our plan at the moment is just to acquire it and believe it as a separate stand-alone company for the near term. Let's see what benefits could exist between the 2 companies over time, we'll share best practices and we'll figure out how to serve our customers even better. So I think there's obvious areas where we can help each other continue to grow and improve, but the plan is to believe it is a separate stand-alone company for the moment.

是的。這是一個很好的問題，也是我們一直在思考的問題。 Wencor 是一家經營得非常非常好的公司，他們的員工擁有巨大的財富。所以坦率地說，我們目前的計劃只是收購它，並相信它在短期內是一家獨立的獨立公司。讓我們看看隨著時間的推移，這兩家公司之間可能存在哪些優勢，我們將分享最佳實踐，我們將弄清楚如何更好地為我們的客戶服務。所以我認為我們可以在明顯的領域互相幫助，繼續發展和改進，但目前的計劃是相信它是一家獨立的獨立公司。

All right. That's helpful. And then just kind of a follow-up on some of those synergies that you might expect from the Wencor acquisition. Do you expect that as a combined company, it might give you an opportunity to speed up development of new PMA parts? Or do you anticipate there might be any benefits related to scale in terms of working to get PMA parts approved?

好的。這很有幫助。然後只是對您可能期望從 Wencor 收購中獲得的一些協同效應進行跟進。您是否期望作為一家合併後的公司，它可能會給您一個機會來加快新 PMA 零件的開發？或者您是否預計在努力獲得 PMA 零件批准方面可能會有與規模相關的任何好處？

Yes, that's also a great question. In terms of scale and getting PMA parts approved, we've got a great track record with the FAA to be able to get parts approved so I feel pretty confident that we'll be able to continue to add to that. Wencor has, as I mentioned earlier, a product line that HEICO doesn't offer so I think that this is going to add to the portfolio. And yes, it will speed up the development because right now, for example, HEICO wants to develop the type of part that we haven't done in the past, whereas Wencor has done that type of part in the past then we would be able, yes, to develop it more quickly. So I think that that's going to be a benefit.

是的，這也是一個很好的問題。在規模和獲得 PMA 零件批准方面，我們在 FAA 方面擁有良好的記錄，能夠獲得零件批准，因此我非常有信心我們將能夠繼續增加。正如我之前提到的，Wencor 擁有 HEICO 不提供的產品線，因此我認為這將增加產品組合。是的，它會加快開發速度，因為現在，例如，HEICO 想要開發我們過去沒有做過的那種類型的零件，而 Wencor 過去做過這種類型的零件，那麼我們就可以，是的，更快地開發它。所以我認為這將是一個好處。

Also, when we go to customers, very often, customers ask for a broader product line. And by adding the 2 product lines together, we're going to be able to cover a lot more of the waterfront. And so we're very excited about all the benefits that that's going to bring.

此外，當我們去拜訪客戶時，客戶經常會要求提供更廣泛的產品線。通過將 2 條產品線加在一起，我們將能夠覆蓋更多的濱水區。因此，我們對這將帶來的所有好處感到非常興奮。

Great. Well, congrats on the acquisition.

偉大的。好吧，恭喜收購。

We'll take our next question from Sheila Kahyaoglu with Jefferies.

我們將與 Jefferies 一起接受 Sheila Kahyaoglu 的下一個問題。

Congratulations. Larry, I want to ask you a question first. You mentioned inventory and supply chain a few times in your prepared remarks, and you guys have typically done very well with cash conversion. So maybe can you talk about that?

恭喜。拉里，我想先問你一個問題。你在準備好的發言中多次提到庫存和供應鏈，你們通常在現金轉換方面做得很好。那麼也許你能談談這個嗎？

And Eric, you also referred to inventory and having supply ready for customers. Is this something new? Is it specific to a certain business? And maybe -- if you could talk about that.

埃里克，你還提到了庫存和為客戶準備好供應。這是新東西嗎？它是否特定於某個業務？也許——如果你能談談這個。

No, I think 2 things were happening. Number one, our backlog is larger, and to fill that backlog to supply the customers on time, we have to have inventory. So that went up. Number two, because of supply chain issues, our subsidiaries want to make sure they have inventory on the shelf to meet the customers' demand. So those 2 things increased the inventory. And that was the main increase, I think, in inventory.

不，我認為發生了兩件事。第一，我們的積壓量更大，要填補積壓量以按時供應客戶，我們必須有庫存。所以那上升了。第二，由於供應鏈問題，我們的子公司希望確保貨架上有庫存以滿足客戶的需求。所以這兩件事增加了庫存。我認為這是庫存的主要增長。

And then also, Sheila, to add to that. We are anticipating additional growth in the businesses and in particular, over in the distribution side. Picking up additional principles, additional territories, so we had to grow inventory for that. And then also, I think everybody is pretty aware of the extended lead times in the industry. Product that used to have 4-week, 8-week lead times now can have anywhere from 26 to 52 week lead times. And we want to make sure that we are able to service our customer and we've got the parts on the shelf.

還有，Sheila，要補充一點。我們預計業務會進一步增長，尤其是在分銷方面。選擇更多的原則，更多的領域，所以我們必須為此增加庫存。然後，我認為每個人都非常清楚該行業的交貨時間延長。過去有 4 週、8 週交貨時間的產品現在可以有 26 到 52 週的交貨時間。我們希望確保我們能夠為我們的客戶提供服務，並且我們已經將零件放在貨架上。

And as a matter of fact, the head of our distribution business told me this morning that a very major, major industry player out there who is a very big customer, we've got 98% on-time delivery in a market where we are having the place of the 52-week lead times for the products to which we are distributing to that. So in the -- the way we're able to get 98% of this particular business on time delivery when others are dozens of points below that, is by holding the inventory.

事實上，我們的分銷業務負責人今天早上告訴我，一個非常重要的主要行業參與者是一個非常大的客戶，我們在我們所在的市場上有 98% 的準時交貨率代替我們向其分發的產品的 52 週交貨時間。因此，我們能夠在其他業務低於此水平數十點的情況下按時交付該特定業務的 98% 的方式是持有庫存。

So we want to be there for our customers. We've never been cash constrained. We want to make sure that we invest in the right inventory. It doesn't do any good to have the wrong inventory, obviously. But we got the right inventory, we make our principals happy, and we're able to service our customers. So I think that's really why inventory has increased and we think it's the right thing to do.

所以我們想為我們的客戶服務。我們從來沒有現金緊張。我們希望確保我們投資於正確的庫存。顯然，擁有錯誤的庫存沒有任何好處。但我們有合適的庫存，我們讓我們的委託人滿意，我們能夠為我們的客戶提供服務。所以我認為這就是庫存增加的真正原因，我們認為這是正確的做法。

Okay. That's helpful. And then, Victor, maybe for you with Exxelia. I mean, obviously, we all understand that it's lower margin, but is it lower margins now? Is there something structural in the business? Or is it just a factor of its footprint?

好的。這很有幫助。然後，Victor，也許 Exxelia 適合你。我的意思是，很明顯，我們都知道利潤率較低，但現在利潤率是否較低？業務中有結構性的東西嗎？還是僅僅是其足蹟的一個因素？

Look, it's a good margin business in absolute terms. It's just not as high margin as the rest of the business. Their margins have been increasing over the last several years. I think that I would expect that to continue, but I don't anticipate it's going to get to the same margin as the rest of the ETG in the near term at least or in the next couple of years, absent some acquisition or acquisitions which would change that story.

看，從絕對意義上講，這是一項利潤豐厚的業務。它的利潤率不如其他業務高。他們的利潤在過去幾年中一直在增加。我認為我希望這種情況會繼續下去，但我預計它不會在短期內或未來幾年內達到與 ETG 其餘部分相同的利潤率，除非有一些收購或收購會改變那個故事。

So we're very happy with the margins. They're very good, but just not as high as the rest. And that went into our acquisition decision.

所以我們對利潤率非常滿意。他們非常好，但不如其他人高。這進入了我們的收購決定。

By the way, Sheila, in past conferences, we have stated that the ETG Group would acquire a strong company that had a lower margin than -- I mean, when ETG was 28% or 33%. We always said, if we bought a company that had close to 20%, it's going to lower the average margin. But the cash and profit generation and the size of the acquisition of Exxelia warranted us saying, fine, we'll lower -- we'll take a lower operating margin because this is a very fine company. And by the way, it has great management, and we believe it has the ability to grow. So those things overrode the desire.

順便說一下，Sheila，在過去的會議上，我們曾表示 ETG 集團將收購一家利潤率低於 ETG 28% 或 33% 的強大公司。我們總是說，如果我們收購一家擁有接近 20% 的公司，它會降低平均利潤率。但現金和利潤的產生以及收購 Exxelia 的規模使我們有理由說，好吧，我們會降低——我們會降低營業利潤率，因為這是一家非常優秀的公司。順便說一句，它有很好的管理，我們相信它有成長的能力。所以那些事情壓倒了慾望。

It would have been great to have higher margin. We do believe that as we build in some efficiencies, that margin can creep up.

如果有更高的利潤率那就太好了。我們確實相信，隨著我們提高一些效率，利潤率會逐漸上升。

Our next question comes from Josh Sullivan with The Benchmark Company.

我們的下一個問題來自 The Benchmark Company 的 Josh Sullivan。

I'm going to comment of doing PMA parts you haven't maybe done in the past using possibly some of Wencor's expertise, what is your appetite to expand the PMA waterfront? Where might you go with PMA you haven't gone in the past?

我要評論你過去可能沒有使用 Wencor 的一些專業知識來做 PMA 零件，你對擴大 PMA 海濱有什麼胃口？過去沒有去過的 PMA 你可能去哪裡？

Yes, it's a great question and it's something that we thought quite a bit about.

是的，這是一個很好的問題，我們也考慮了很多。

We think that there's a whole set of parts that we just haven't been able to tap as efficiently. And if you look at HEICO's sort of developed a certain skill, engineering skill set to go after the types of parts that HEICO does and Wencor has done the same for the parts that they have done. And by being able to focus in each of those areas, I think there's going to be a lot more that we can do together. A lot of these parts made up, so you can have a complex part next to it. That's a complex part, but the 2, there's certain interaction between them. And so this is really going to help us develop a much fuller product set because we're going to be able. But basically, we'll be able to expand into areas that we haven't done in the past.

我們認為有一整套我們無法有效利用的部分。而且，如果你看一下 HEICO 開發的某種技能，工程技能集可以追踪 HEICO 所做的零件類型，而 Wencor 也對他們所做的零件做了同樣的事情。通過能夠專注於每個領域，我認為我們可以一起做更多的事情。很多這些部件組成，所以你可以在它旁邊放一個複雜的部件。這是一個複雜的部分，但是 2，它們之間存在一定的相互作用。所以這真的會幫助我們開發更完整的產品集，因為我們將能夠。但基本上，我們將能夠擴展到我們過去沒有做過的領域。

And then just on the growth of PMA in general, there's some thought PMAs have benefited from some of the struggling OEM supply chain issues. How should we think about that dynamic? If and when OEM supply chains recover, do you still think PMA growth will be strong in the [out] years?

然後就 PMA 的總體增長而言，有人認為 PMA 已經從一些苦苦掙扎的 OEM 供應鏈問題中受益。我們應該如何看待這種動態？如果 OEM 供應鏈恢復，您是否仍然認為 PMA 增長在 [out] 年會強勁？

Well, I sure hope so. We think that there's really been a permanent shift and change in the industry. So we've been out there, both HEICO and Wencor have been out there preaching to the customers for whatever, 50 years about PMA, and it's taking in a certain period of time. But you know the old saying, what is it, that necessity is the motherhood of invention? And so we've been out there with, frankly, as good technical product, if not better. And don't get me wrong, our -- the OEM companies out there supplying the market, they supply very, very fine products. So to supply products that are the same as the OEM is quite a technical challenge. And then frankly, in order to have the products on the shelf, that really takes a tremendous amount of effort.

好吧，我當然希望如此。我們認為這個行業確實發生了永久性的轉變和變化。所以我們一直在那裡，HEICO 和 Wencor 一直在那裡向客戶宣傳 PMA 50 年，並且需要一段時間。但是你知道那句老話嗎，必要性是發明的母性嗎？因此，坦率地說，我們已經推出了優秀的技術產品，如果不是更好的話。不要誤會我的意思，我們的 OEM 公司供應市場，他們提供非常非常好的產品。因此，要提供與 OEM 相同的產品是一項相當大的技術挑戰。然後坦率地說，為了讓產品上架，這確實需要付出巨大的努力。

So I think we are in a very, very good position to continue to grow our sales. And we compete with the OEMs, and they are really high-quality, excellent companies and they're really, really tough to compete with because they offer a very broad product set at -- with an outstanding quality. So we think that this is the opportunity to obviously bring multiple products together and be able to compete with the OEMs on a better basis.

所以我認為我們處於非常非常有利的位置，可以繼續增加我們的銷售額。我們與原始設備製造商競爭，他們確實是高質量、優秀的公司，而且他們真的非常難以與之競爭，因為他們提供非常廣泛的產品集——具有出色的質量。因此，我們認為這是將多種產品組合在一起並能夠在更好的基礎上與 OEM 競爭的機會。

Also, I have to say, I don't want to mention which ones, but even OEMs have now moved to buying both HEICO and Wencor PMA product because if they don't have the parts on the shelf and they've got to shift even their own repaired units. And again, I don't want to go into which ones or what they are, but they purchase our parts to go ahead and do that, saying we're happy to sell it to them. So I think it's really coming together, and there is what I believe is a permanent market shift in how HEICO and Wencor products are viewed in the marketplace.

另外，我不得不說，我不想提及是哪些，但即使是原始設備製造商現在也開始購買 HEICO 和 Wencor PMA 產品，因為如果貨架上沒有零件，他們就必須轉移甚至是他們自己修理的單位。再說一次，我不想討論是哪些或它們是什麼，但他們購買我們的零件是為了繼續這樣做，並說我們很樂意將其出售給他們。所以我認為它真的走到了一起，而且我認為市場上對 HEICO 和 Wencor 產品的看法會發生永久性的市場轉變。

Our next question comes from Tony Bancroft with Gabelli Funds.

我們的下一個問題來自 Gabelli Funds 的 Tony Bancroft。

Well done on the quarter, very nice. Just -- maybe could you just frame -- could you frame maybe what else is out there in the PMA market? Who else participates there besides the Wencor's? It sounds like they're one of -- I mean, small relative to you, but larger ones out there. Is that where you want to focus going forward? And maybe -- just maybe talk about that.

本季度做得很好，非常好。只是 - 也許你可以構建 - 你可以構建 PMA 市場上還有什麼嗎？除了 Wencor's，還有誰參加？聽起來他們是其中之一——我的意思是，相對於你來說很小，但在外面卻更大。那是你想要關注的地方嗎？也許 - 只是也許談論那個。

Yes. Tony, this is Eric. I'd be happy to go ahead and go over that. There's a long list of competitors who supply PMA parts there. And I don't want to call them out by name, but they exist and our customers know who they are and they work with them, and so I think that will continue.

是的。托尼，這是埃里克。我很樂意繼續討論這個問題。有一長串競爭對手在那裡供應 PMA 零件。我不想直呼他們的名字，但他們存在，我們的客戶知道他們是誰，他們與他們合作，所以我認為這種情況會繼續下去。

Our area really for future acquisitions, I wouldn't say is in the PMA area. Our area for future acquisitions would be -- I want to be careful not to because we welcome our competitors to this call, but we don't want to exactly tell them what we're going to be going out after. But we think that there are a lot of adjacent white spaces in which HEICO does not participate. Many, many. And HEICO is still, even though we've done quite nicely, we're still a very small company and there's so much more to do out there. So I think we're going to grow, we're going to focus in areas that are additive and really broaden our product set so we can bring more -- we can become a more efficient and stronger competitor and be able to bring more products to the marketplace.

我們真正適合未來收購的區域，我不會說是在 PMA 區域。我們未來收購的領域將是——我想小心不要這樣做，因為我們歡迎我們的競爭對手參加這個電話會議，但我們不想確切地告訴他們我們將要做什麼。但是我們認為有很多相鄰的空白是HEICO不參與的。很多很多。 HEICO 仍然是，儘管我們做得很好，但我們仍然是一家非常小的公司，還有很多事情要做。所以我認為我們會成長，我們將專注於附加領域，真正擴大我們的產品集，這樣我們就可以帶來更多——我們可以成為一個更高效、更強大的競爭對手，並能夠帶來更多的產品到市場。

Our next question comes from Colin Ducharme with Sterling Capital.

我們的下一個問題來自 Sterling Capital 的 Colin Ducharme。

Quick housekeeping for Victor, Carlos on ETG. Did you give the organic sales number for that segment for the quarter as though I missed it? And then a follow-up, I'll just ask them all at the same time here.

ETG 上 Victor、Carlos 的快速內務管理。您是否提供了本季度該細分市場的有機銷售數字，就好像我錯過了一樣？然後是後續行動，我將在這裡同時詢問他們。

A follow-up on just pulling the thread for the Wencor deal for Eric and/or Larry. I wanted to maybe pull that thread with -- using kind of 2 lenses, the strategic and financial. So strategic, you talked about the marriage of both PMA franchises. But can you talk about perhaps marriage of distribution and PMA? And what I mean by that is it sure looks like Wencor has put more muscle in recent periods into signing exclusive distribution agreements, and I'm wondering if you can now bring to bear your larger PMA catalog and marry them with some of those distribution agreements? That seems like a logical strategic synergy there.

關於為埃里克和/或拉里的 Wencor 交易拉線的後續行動。我想也許可以用 - 使用 2 個鏡頭，戰略和財務來拉動這條線。如此具有戰略意義，你談到了兩個 PMA 特許經營權的結合。但是你能談談分銷和 PMA 的結合嗎？我的意思是，看起來 Wencor 最近確實在簽署獨家經銷協議方面投入了更多精力，我想知道您現在是否可以承擔更大的 PMA 目錄並將它們與其中一些經銷協議結合起來？這似乎是一種合乎邏輯的戰略協同作用。

And then from a financial lens, in your previous responses, you talked about not doing anything different or special with integrating this culture and then having the same DNA as you all. We kind of view the real asset of HEICO is your culture. And one differentiator, if you look at this asset now, Wencor in prior years, you're talking about a business that has borne the load of a debt load 6x, 7x, 8x EBITDA, and that burden is significant. It does inhibit some reinvestment. And now, they're going to be able to benefit from a much stronger financial model. So can you just talk a little bit about that? That DNA looks and smells a little different in terms of opportunity and the capacity to reinvest, and so I would just love to hear you tee off with some opportunities there.

然後從財務的角度來看，在您之前的回答中，您談到在整合這種文化方面沒有做任何不同或特別的事情，然後擁有與你們所有人相同的 DNA。我們認為 HEICO 的真正資產是您的文化。一個差異化因素，如果你現在看這個資產，前幾年的 Wencor，你談論的是一家承擔了 6 倍、7 倍、8 倍 EBITDA 債務負擔的企業，而且這個負擔是巨大的。它確實抑制了一些再投資。現在，他們將能夠從更強大的財務模型中受益。那麼你能談談這個嗎？就機會和再投資能力而言，這種 DNA 看起來和聞起來有點不同，所以我很想听聽你在那裡尋找一些機會。

Yes. Let me make one comment. Wencor was owned by private equity, and their model is heavy leverage. HEICO, when it closes, will own Wencor and our model is low leverage. So that leverage situation will totally disappear. Yes Eric wants to.

是的。讓我發表一個評論。 Wencor 為私募股權所有，他們的模式是高槓桿。 HEICO 在關閉時將擁有 Wencor，而我們的模型是低杠桿。這樣槓桿的情況就會完全消失。是的，埃里克想要。

Yes. And Colin, I mean these are really great questions, and I'm glad you're hitting on them.

是的。科林，我的意思是這些都是很好的問題，我很高興你能抓住這些問題。

Both HEICO and Wencor are in the distribution market, and the unique benefits that we bring to our distribution partners is that we're able to -- first of all, we both very much focus on the details. Starting out as small companies, we really focused to make sure that we get maximum benefits to the customers, making sure that they know what's available for (inaudible) that we get the products sold. But the other area of similarity is both HEICO and Wencor have been able to bring 2 distribution partners the ability to develop additional parts that they don't already offer in their catalog.

HEICO 和 Wencor 都在分銷市場，我們為分銷合作夥伴帶來的獨特優勢在於我們能夠——首先，我們都非常關注細節。從小公司開始，我們真正專注於確保我們為客戶帶來最大利益，確保他們知道我們出售的產品可用於（聽不清）什麼。但另一個相似之處是，HEICO 和 Wencor 都能夠讓 2 個分銷合作夥伴能夠開發他們目錄中尚未提供的其他零件。

And I'm glad you're mentioning this, because this is something that we've been thinking about. HEICO, to date, we have distribution partners and we've got the ability to develop certain PMAs and we're known at the airlines for developing those PMAs. But for the existing distribution partners that we've got, there's a whole set of additional parts that Wencor can bring to the HEICO distribution partners and really help them, and likewise, HEICO can bring to the Wencor distribution partners. So I think that this is going to increased competition in the distribution aftermarket and make the products that go into the airlines just being that much bigger, so they're going to be able to save a lot more money on it. So that was on the strategic side.

我很高興你提到這個，因為這是我們一直在考慮的事情。 HEICO，到目前為止，我們有分銷合作夥伴，我們有能力開發某些 PMA，我們在航空公司中因開發這些 PMA 而聞名。但是對於我們現有的分銷合作夥伴，Wencor 可以為 HEICO 分銷合作夥伴提供一整套額外的部件並真正幫助他們，同樣，HEICO 可以為 Wencor 分銷合作夥伴帶來。所以我認為這將增加分銷售後市場的競爭，並使進入航空公司的產品變得更大，因此他們將能夠節省更多的錢。所以這是在戰略方面。

You asked also about financial and the culture side. The businesses, the people are really, really similar. Again, as I said, focused on the detail, focused on quality, making sure that we're out there with the customers, whatever they need, when they need it, we move heavy on earth for them, and that is identical in both HEICO and Wencor. And you're right that the people are the real assets, I mean, that's the most important part of the business by far. And Wencor has been constrained as a result of having -- being private equity owned, and they have been constrained. And I think frankly, HEICO's lower leverage is going to free the Wencor people to be able to go out and sell additional product, take additional inventory positions, call it additional inventory, if that's what makes sense, broadly what they do.

您還詢問了財務和文化方面的問題。企業，人真的非常相似。再次，正如我所說，專注於細節，專注於質量，確保我們與客戶在一起，無論他們需要什麼，當他們需要時，我們都會為他們付出沉重的代價，這兩者都是相同的HEICO 和 Wencor。你是對的，人是真正的資產，我的意思是，這是迄今為止業務中最重要的部分。 Wencor 由於擁有私人股本而受到限制，他們受到了限制。坦率地說，我認為，HEICO 較低的槓桿率將使 Wencor 員工能夠外出銷售更多產品，獲得更多庫存頭寸，稱之為額外庫存，如果這是有意義的，那麼他們所做的就是廣泛的。

And again, that's going to help our customers because the more we sell them by definition, the more they make. I mean we've got, by definition, competition on pretty much every single thing that we offer. And our competitors are these big, huge companies that do a phenomenal job and are really, really hard to compete with. So Wencor, in a sense, has had one hand tied behind its back for the last number of years. And now, we're going to be able to go out and free that hand. And I think it's going to work out really, really well for our customers.

而且，這將再次幫助我們的客戶，因為根據定義，我們賣給他們的越多，他們賺的就越多。我的意思是，根據定義，我們在幾乎所有我們提供的東西上都有競爭。我們的競爭對手是這些大公司，他們做得非常出色，真的很難與之競爭。因此，從某種意義上說，在過去的幾年裡，Wencor 的一隻手被綁在了背後。現在，我們將能夠走出去解放那隻手。我認為這對我們的客戶來說真的非常好。

And then I think you had some ETG. Carlos or.

然後我認為你有一些 ETG。卡洛斯或。

I got to follow that. All right, so you asked about the ETG. For the quarter, it was down 3% organically, most of that driven by Defense. The other slips within the ETG organically were all up. They were either flat compared to the prior quarter or were all up, so that's the quarter. And I think for the year, it's similar. It was some around, year-to-date, around 2% down for the segment on organic growth.

我必須遵循這一點。好吧，你問的是 ETG。本季度，它有機地下降了 3%，其中大部分是由國防部推動的。 ETG 內的其他單據有機地全部上升。與上一季度相比，它們要么持平，要么全部上漲，所以這就是本季度。我認為今年是相似的。年初至今，該部門的有機增長下降了約 2%。

(Operator Instructions)

（操作員說明）

We'll take our next question from Noah Poponak with Goldman Sachs.

我們將從諾亞·波波納克 (Noah Poponak) 和高盛 (Goldman Sachs) 提出下一個問題。

Can you frame your market share now in PMA and then where Wencor sits in that respect? And it sounds like you do not foresee any issue in terms of closing with that combined size in PMA. Is that because the combined PMA there would still be small as a percentage of total PMA? Or because it would still be small as a percentage of total aerospace broad aftermarket?

您現在可以在 PMA 中構建您的市場份額，然後 Wencor 在這方面的位置嗎？聽起來您沒有預見到在 PMA 中以該組合大小關閉任何問題。那是因為那裡的合併 PMA 佔總 PMA 的百分比仍然很小嗎？還是因為它佔整個航空航天廣泛售後市場的百分比仍然很小？

Yes. We don't know specific shares because it's impossible to get that information. But our competitors, as we've always said, are the OEMs. And when you look at the OEM aftermarket sales, I mean, we are -- we've always said that we are absolutely tiny, tiny compared to them. So this is going to give us the ability to compete better with the OEMs. So we still view our market share as very small. We think the product into which we can grow is very, very considerable, so that's why we're very optimistic for the future and why we think that there is really a lot of opportunity here.

是的。我們不知道具體的份額，因為不可能獲得該信息。但正如我們一直所說的那樣，我們的競爭對手是原始設備製造商。當您查看 OEM 售後市場銷售時，我的意思是，我們 - 我們一直說與他們相比我們絕對很小，非常小。因此，這將使我們能夠更好地與原始設備製造商競爭。所以我們仍然認為我們的市場份額很小。我們認為我們可以發展成的產品非常非常可觀，所以這就是為什麼我們對未來非常樂觀，為什麼我們認為這裡真的有很多機會。

Were you able to, in the diligence process, look into whether or not market share and just PMA would be a factor?

在盡職調查過程中，您是否能夠調查市場份額和 PMA 是否是一個因素？

No. I mean, look, we study everything, but the -- as I've always said, and I've been asked on these calls for 20 years about what are the factors in the marketplace that affect us the most, and it's always been the OEMs. It's always been. I mean the OEMs, they have the home field advantage, they're selling the original product. They're in there. They got point of sale ability. When they sell the asset, they're able to tie up the maintenance long term. They offer a full product set. That's always been our competition.

不，我的意思是，看，我們研究了一切，但是——就像我一直說的那樣，20 年來我一直在這些電話會議上被問及市場中對我們影響最大的因素是什麼，它是一直是原始設備製造商。一直都是。我的意思是原始設備製造商，他們有主場優勢，他們在銷售原始產品。他們在裡面。他們有銷售點能力。當他們出售資產時，他們能夠長期佔用維護費用。他們提供完整的產品集。這一直是我們的競爭。

So my -- I mean, if you had to pin me down and get what our market share, the combined market share against [OE] aftermarket parts, I guess it's in the 2% area. I mean, it's very, very small, and that's what I think there is a lot of opportunity to really grow. And frankly, look, it's 2%. We're never going to be -- we're never going to have the sales of some of these very large companies. But I think we can continue to grow our product line and be able to offer more product at very good prices to our customers and save them a lot of money. I mean, the airlines are saving a fortunate as the result of our products. And if they're able to do that and we're at 2%, I think they'll be able to save even more as we move forward here.

所以我的 - 我的意思是，如果你不得不讓我失望並獲得我們的市場份額，相對於 [OE] 售後市場零件的合併市場份額，我想它在 2% 左右。我的意思是，它非常非常小，這就是我認為真正成長的機會很多。坦率地說，看，它是 2%。我們永遠不會 - 我們永遠不會擁有其中一些非常大公司的銷售。但我認為我們可以繼續擴大我們的產品線，並能夠以非常優惠的價格向我們的客戶提供更多產品，並為他們節省很多錢。我的意思是，由於我們的產品，航空公司正在節省一筆財富。如果他們能夠做到這一點，而我們是 2%，我認為隨著我們向前推進，他們將能夠節省更多。

No. As -- this is Larry. As you know, the OE generally has a monopoly position in replacement parts. He starts off with offering the only available parts. If they want to replace parts, they have to go to the OE. HEICO has a tiny share because of its PMA, but PMA has succeeded because of its price benefit to the airlines. So we offer a much greater value to the airlines, and that's where our competitive advantage exists.

不，因為——這是拉里。如您所知，OE 通常在更換零件方面具有壟斷地位。他從提供唯一可用的零件開始。如果他們想更換零件，他們必須去 OE。由於 PMA，HEICO 的份額很小，但 PMA 之所以成功，是因為它對航空公司有價格優勢。因此，我們為航空公司提供了更大的價值，而這正是我們存在競爭優勢的地方。

So that -- you know what the marketplace looks like, but we are very small compared to what the market is. And we only -- essentially, we said we only compete with ourselves. So we try to grow the bottom line 15%, 20%, but that's a tiny share of the overall market.

所以 - 你知道市場是什麼樣子，但與市場相比我們非常小。我們只是 - 本質上，我們說我們只與自己競爭。因此，我們試圖將底線增長 15%、20%，但這在整個市場中所佔的份額很小。

Okay. I appreciate all that. I just had 2 more. One, was the accelerated earnout or the contingent consideration, was that in the FSG segment EBIT and EBIT margin in the quarter?

好的。我很感激這一切。我還有 2 個。第一，是加速盈利還是或有考慮，是在本季度 FSG 部門的息稅前利潤和息稅前利潤率？

It was, Noah. The $9 million was a liability on our balance sheet up through the middle of Q2, and then we reversed it when we renegotiated the transaction. It went through EBIT in the segment. So there was about 2.3% worth of benefit to the OEM margin related to this matter.

是的，諾亞。直到第二季度中期，這 900 萬美元一直是我們資產負債表上的一項負債，然後我們在重新談判交易時將其轉回。它在該細分市場中經歷了息稅前利潤。因此，與此事相關的 OEM 利潤率大約有 2.3% 的收益。

So Carlos, I guess that's a pretty sporty margin if I adjust that.

所以卡洛斯，我想如果我調整的話，這是一個相當運動的利潤。

Yes.

是的。

Should I work from there going forward? Or does that have some other favorable timing that doesn't repeat in the near term? Or how should I think about the next steps there?

我應該從那裡開始工作嗎？或者這是否有其他一些不會在短期內重現的有利時機？或者我應該如何考慮接下來的步驟？

So look, I'm always conservative when we talk about margins because really, who knows, right? But I would say and what I've told people pretty consistently is that we're in an extraordinary time right now where the business is growing and growing. We have product and our sales, as Eric pointed out, was it 8 quarters of 20% or higher growth?

所以看，當我們談論利潤時我總是保守的，因為真的，誰知道，對吧？但我要說的是，我一直告訴人們的是，我們現在正處於一個業務不斷增長的非凡時期。正如 Eric 指出的那樣，我們有產品和銷售額，這是 8 個季度 20% 或更高的增長嗎？

So when you're in an environment like that, you get tremendous leverage on your fixed costs, you get favorable product mix, et cetera. I am cautiously optimistic that the margins will remain high. Today, I'm more optimistic they would be higher than it was yesterday. What's that number? If I'm modeling I'm thinking 22% to 23% might be the norm for the segment, but I can't tell you that with great specificity because we need the business to calm down, if you would. The industry came down, take a pause, et cetera. And once we see what the footprint looks like, it will be an easier question to answer.

因此，當您處在這樣的環境中時，您可以極大地利用固定成本，獲得有利的產品組合，等等。我對利潤率將保持高位持謹慎樂觀態度。今天，我更樂觀地認為它們會比昨天更高。那個號碼是多少？如果我正在建模，我認為 22% 到 23% 可能是該細分市場的標準，但我不能非常具體地告訴你，因為我們需要業務冷靜下來，如果你願意的話。行業下降，暫停，等等。一旦我們看到足蹟的樣子，這將是一個更容易回答的問題。

But right now, all businesses within the Flight Support Group are firing on all cylinders. So this -- this is what you get in a period like this, and we'll see where it shakes out once the industry growth came down a little bit.

但現在，飛行支持集團內的所有業務都在全力以赴。所以這 - 這就是你在這樣的時期所得到的，一旦行業增長略有下降，我們就會看到它會在哪裡發生變化。

Interesting. Okay. And then what was the organic growth or decline in just Defense within ETG revenue?

有趣的。好的。那麼 ETG 收入中防禦的有機增長或下降是什麼？

So it was double digits. It was in the low teens, and that's been a little better than it had been in prior quarters. And I think that Victor pointed out, I think the trend is that we're starting to see a little bit of life in the Defense segment. And hopefully, for the ETG hopefully, that plays itself out towards the back half of the year.

所以它是兩位數。那是在十幾歲的時候，這比前幾個季度好一點。而且我認為 Victor 指出，我認為趨勢是我們開始在國防領域看到一些生活。希望，對於 ETG，希望在今年下半年發揮作用。

Defense was down double digits in the quarter?

防守在本季度下降了兩位數？

Yes. In ETG. It was up quite nicely in the FSG, by the way, but it was down in the ETG. Defense Electronics, in particular, has been soft for about the last 4 quarters.

是的。在 ETG 中。順便說一下，它在 FSG 中表現不錯，但在 ETG 中卻下降了。 Defense Electronics 在過去 4 個季度尤其疲軟。

And it sounds like you expect that to maybe be a little better in the back half, but probably still down year-over-year? Is that what you're looking for?

聽起來你預計後半段可能會好一點，但可能仍同比下降？那是你要找的嗎？

That's what we're hoping for, yes. If you look at the backlog and the timing of deliveries, as Victor talked about earlier, that's what we think is going to play out.

這就是我們所希望的，是的。如果您查看積壓的訂單和交付時間，正如 Victor 之前談到的那樣，我們認為這就是結果。

Yes. I appreciate it.

是的。我很感激。

We'll take our next question from Louis Raffetto with Wolfe Research.

我們將接受 Wolfe Research 的 Louis Raffetto 的下一個問題。

Eric, you've provided some really good thoughts on the FSG business in Wencor. I guess as we think about product development, you kind of mentioned you guys did some parts, Wencor did other parts, but you guys could maybe leverage each other. I guess how do you think about HEICO wanting to do a part that maybe Wencor would have done in the past? How do you manage that going forward?

Eric，您對 Wencor 的 FSG 業務提出了一些非常好的想法。我想當我們考慮產品開發時，你們提到你們做了一些部分，Wencor 做了其他部分，但你們可以互相利用。我想您如何看待 HEICO 想要做 Wencor 過去可能會做的事情？你將如何處理這件事？

In general, I would say that in the past, if Wencor already had a part, HEICO would not develop the part. So they really sort of play, if you will, very much in 2 sandboxes. So we think that we're really going to be able to get best of breed here, whereby each business can focus on what it does exceptionally well. And also, there's a lot of engineering and technical tools that each company uses, frankly, that can improve the process of the other company as well. And I think all of this put together is just going to benefit the customer with a broader product set in going into areas where we -- where we haven't gone into in the past.

一般來說，我會說過去，如果Wencor已經有一個零件，HEICO就不會開發這個零件。因此，如果您願意的話，他們真的可以在 2 個沙盒中玩。所以我們認為我們真的能夠在這裡獲得同類中最好的，每個企業都可以專注於它做得非常好的事情。而且，坦率地說，每家公司都使用許多工程和技術工具，它們也可以改進另一家公司的流程。而且我認為所有這些放在一起只會讓客戶受益，因為我們可以進入我們過去沒有進入的領域。

I'm reluctant, as you can imagine, Louis, to get into specificity because we don't want to tip people off as to where we're going. But we think that there's a lot of stuff to be developed where no alternative exists now, and we're going to be able to go [tackle] that stuff.

Louis，正如你想像的那樣，我不願意具體說明，因為我們不想讓人們知道我們要去哪裡。但是我們認為現在沒有其他選擇的地方還有很多東西需要開發，我們將能夠[解決]這些東西。

Right. I guess, Victor, one for you. In the press release and on the call, you kind of mentioned these lower efficiencies or lower level of efficiencies due to Exxelia. I guess I'm just trying to understand exactly what that means. Is that just sort of the drop-through of the dilution? Or was there some other level of lower efficiencies as a result of the deal? Did something else happen?

正確的。我想，維克多，給你一個。在新聞稿和電話會議上，您提到了 Exxelia 導致的這些較低的效率或較低的效率水平。我想我只是想準確地理解這意味著什麼。這只是稀釋的一種滴漏嗎？還是由於交易導致了其他某種程度的低效率？有沒有其他事情發生？

Yes, I think it's just the drop-through of the dilution.

是的，我認為這只是稀釋的下降。

Okay. Just wanted to make sure that was it.

好的。只是想確定就是這樣。

And then just one last one for Carlos. The 2.7x to 2.8x leverage multiple you kind of mentioned and Larry mentioned, to be clear, that's not pro forma, that's just kind of adding the $1.9 billion? I guess, technically, if you kind of give yourself credit for that EBITDA, I think it should be lower, probably under 2.5x. Is that correct?

然後是 Carlos 的最後一個。你提到的 2.7 倍到 2.8 倍的槓桿倍數和 Larry 提到的，明確地說，這不是形式上的，這只是增加了 19 億美元？我想，從技術上講，如果您將自己的 EBITDA 歸功於自己，我認為它應該更低，可能低於 2.5 倍。那是對的嗎？

We'll see. I mean I think the net leverage in our model is supposed to be around $2.8 million. We'll see how much is outstanding on our line. When we (inaudible), it will all be dependent on how much debt we pay down between now and closing, so -- but that's where our best forecast is right now.

我們拭目以待。我的意思是我認為我們模型中的淨槓桿應該在 280 萬美元左右。我們將看看我們的生產線上有多少是未清的。當我們（聽不清）時，這將完全取決於我們從現在到關閉之間償還了多少債務，所以 - 但這是我們目前最好的預測。

Sorry, but is that including any EBITDA from Wencor? Or is that just sort of the HEICO EBITDA and then the Wencor [Debt]?

抱歉，這是否包括 Wencor 的任何 EBITDA？或者這只是一種 HEICO EBITDA，然後是 Wencor [債務]？

It would be the pro forma earnings for both companies.

這將是兩家公司的預估收益。

We'll take our next question from Gautam Khanna with TD Cowen.

我們將與 TD Cowen 一起接受 Gautam Khanna 的下一個問題。

I wanted to ask a couple of questions. First, on the Wencor multiple, you guys are paying for it. Maybe just a little bit of background on the sale process? Like it seems like a fairly low multiple, all things considering. Was it an auction? If you could just describe some of the background to how this acquisition came about?

我想問幾個問題。首先，在 Wencor 倍數上，你們正在為此付出代價。也許只是關於銷售過程的一點背景？考慮到所有因素，這似乎是一個相當低的倍數。是拍賣嗎？您是否可以描述一下此次收購的背景？

First of all, it's a good question. We have known about Wencor for many years. We were aware of it. In previous times, we try to buy it at much lower prices. There was an auction. We were competing with some -- what we consider pretty well-financed private equity groups. We don't feel that we paid a low price. We feel that we -- actually, I feel that I pay a high price, and much higher than we had really wanted to pay. So the auction pushed us up, and we paid what I consider and we consider a market price.

首先，這是一個很好的問題。我們已經知道 Wencor 很多年了。我們知道這一點。以前，我們試圖以低得多的價格購買它。有一場拍賣會。我們正在與一些我們認為資金雄厚的私募股權集團競爭。我們不覺得我們付出了低價。我們覺得我們——實際上，我覺得我付出了高昂的代價，而且比我們真正想付出的要高得多。所以拍賣推高了我們，我們支付了我認為的價格，我們考慮了市場價格。

Yes. So I mean look, obviously, we always try to do right by HEICO shareholders so we want to pay a most reasonable price possible. It was very competitive. There was a lot of interest in the company, and we think that it was a fair price for this business. I mean, it's a large business. It's a large asset. It's much bigger than anything we bought in terms of earnings or people, revenue. So I think overall, it's a fair price for -- it's a very fair price for the business, and we're really excited going forward. There is, as we said, great opportunities for our customers. So overall, we think it's going to work out very well.

是的。所以我的意思是，很明顯，我們總是努力為 HEICO 股東做正確的事，所以我們希望支付盡可能合理的價格。這是非常有競爭力的。對該公司很感興趣，我們認為這對這項業務來說是一個合理的價格。我的意思是，這是一個大企業。這是一筆巨大的財富。它比我們在收入或人員、收入方面購買的任何東西都要大得多。所以我認為總的來說，這是一個公平的價格——這對企業來說是一個非常公平的價格，我們對未來的發展感到非常興奮。正如我們所說，我們的客戶有很多機會。所以總的來說，我們認為它會很好地解決問題。

And perhaps could you just frame -- on paper, looks very accretive, but then there's amortization and other deal-related costs. What is your expectation for earnings accretion in '24 and then perhaps in '25? Just to help frame it.

也許你可以只是框架——在紙面上，看起來非常增值，但還有攤銷和其他與交易相關的成本。您對 24 年和 25 年的收益增長有何期望？只是為了幫助構圖。

Well, I'll tell you what, I'd be happy to answer that question for you when we close. At the moment, we've signed a deal but we haven't closed it. So I rather not get into forecasting that stuff until we've actually closed on the deal.

好吧，我會告訴你什麼，我很樂意在我們結束時為你回答這個問題。目前，我們已經簽署了一項協議，但尚未完成。因此，在我們真正完成交易之前，我寧願不預測這些東西。

Fair enough. Curious, Eric, if you can talk about mix within the quarter? Specialized products versus the other 2 subsegments at FSG, if that helps kind of the margins in the quarter?

很公平。很好奇，埃里克，如果你能在這個季度內談談混合？專業產品與 FSG 的其他 2 個子部門相比，這是否有助於提高本季度的利潤率？

Yes, they -- look, all the businesses had very similar organic growth between parts and distribution, specialty products and the repair. So I mean, they were all in sort of similar areas. Some parts of the business have higher margins than other parts of the business, but overall, we're pleased with the development in each. We think that specialty products, there's still plenty of tailwind to cover because the OE cycle has not fully recovered. And we think that we are, frankly, best of breed in what we do over in the specialty products area. And I think that there is a lot of opportunity, a lot of opportunity for us here to continue to grow and do well and as the business -- as the industry recovers.

是的，他們 - 看，所有業務在零件和分銷、專業產品和維修之間都有非常相似的有機增長。所以我的意思是，他們都在類似的領域。該業務的某些部分的利潤率高於業務的其他部分，但總的來說，我們對每個部分的發展感到滿意。我們認為，特種產品仍有大量順風需要覆蓋，因為 OE 週期尚未完全恢復。坦率地說，我們認為我們在特色產品領域所做的事情是同類中最好的。而且我認為有很多機會，很多機會讓我們在這裡繼續發展並做得很好，隨著業務的發展——隨著行業的複蘇。

And also, when you specifically talk about specialty products, Wencor doesn't have a manufacturing capability, or relatively minimal. And this is one of the other very complementary features of the deal because we've got some really outstanding, truly, truly best-in-class manufacturing capabilities within our Specialty Products group. So while Wencor will continue to be loyal to its existing suppliers as we develop additional product going forward, I think that there's going to be a very, very good capability for Wencor to use some of the HEICO Specialty Products businesses as manufacturers. And also, we'll be able to create some redundancy so we don't just have single sources for some of these products.

而且，當您專門談論專業產品時，Wencor 沒有製造能力，或者相對來說是很少的。這是該交易的其他非常互補的特徵之一，因為我們在我們的專業產品組中擁有一些非常出色、真正、真正一流的製造能力。因此，雖然 Wencor 在我們開發更多產品的過程中將繼續忠於現有供應商，但我認為 Wencor 將有非常非常好的能力使用一些 HEICO 特種產品業務作為製造商。而且，我們將能夠創建一些冗餘，這樣我們就不會只有其中一些產品的單一來源。

We're really good at this machining, sheet metal fabrication and composites, various stuff that we do. And I think that that's going to provide opportunities for Wencor to grow their product set to get into areas where perhaps traditionally, they have gotten into because they didn't have a supplier to be able to make something which is somewhat similar to what they've done, but different. So I think Specialty Products is going to be a great asset for the combined company going forward.

我們非常擅長這種加工、鈑金製造和復合材料，以及我們所做的各種事情。而且我認為這將為 Wencor 提供機會來擴大他們的產品集，以進入傳統上他們可能進入的領域，因為他們沒有供應商能夠製造與他們的產品有點相似的東西。已經完成，但不同。因此，我認為特種產品將成為合併後公司未來發展的重要資產。

And just one last one. I was wondering if you could comment on whether there are any, maybe regions, that are still lagging with respect to demand that has -- still have a big catch-up opportunity? If there's anything you can say by customer set or region or some other way?

最後一個。我想知道你是否可以評論是否有任何地區在需求方面仍然落後 - 仍然有很大的追趕機會？您是否可以按客戶群、地區或其他方式說些什麼？

Yes. We look at the sales. And I mean, obviously, in Asia, things have not fully recovered, and likewise in South America. I think that there continues to be opportunity, if you will, recovery coming out of COVID. Frankly, in our other markets, we're way ahead of where we used to be where we were pre-COVID, and we're doing extraordinarily well. And I think, again, that's a result of just being able to sell more stuff. So I think that there's added recovery opportunity.

是的。我們看銷量。我的意思是，很明顯，在亞洲，情況還沒有完全恢復，南美也是如此。我認為，如果您願意的話，仍然有機會從 COVID 中恢復過來。坦率地說，在我們的其他市場，我們遠遠領先於我們過去在 COVID 之前的水平，而且我們做得非常好。我再次認為，這是能夠賣出更多東西的結果。所以我認為有更多的恢復機會。

In particular -- and I think everybody is aware of the widebody in Asia. I mean, that's the last thing to come back, and so there's a very good opportunity there.

特別是 - 我認為每個人都知道亞洲的寬體飛機。我的意思是，那是回來的最後一件事，所以那裡有一個很好的機會。

And there are no additional questions at this time.

目前沒有其他問題。

Thank you very much. I want to thank everybody who participated on this call, people who asked questions and those who were just listening. I want to remind you that if you do have questions, give us a call. We'll try to respond to them. And unless you have any other comments or questions, I want to again thank the HEICO team members. They are the guys who make it happen and they do a phenomenal job. And we will -- in another 3 months, we will have another third quarter earnings call.

非常感謝。我要感謝所有參與此次電話會議的人，感謝提問的人和傾聽的人。我想提醒您，如果您有任何問題，請給我們打電話。我們會盡力回應他們。除非您有任何其他意見或問題，否則我想再次感謝 HEICO 團隊成員。他們是實現這一目標的人，他們做得非常出色。我們將 - 再過 3 個月，我們將再次召開第三季度財報電話會議。

Thank you all, and this is the end of our prepared remarks.

謝謝大家，我們準備好的發言到此結束。

Thank you. And this concludes today's call. Thank you for your participation. You may now disconnect.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。