Hillenbrand Inc (HI) 2024 Q1 法說會逐字稿

Hello, and welcome to the Hillenbrand Q1 fiscal year 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Sam Mynsberge, Vice President Investor Relations. Please go ahead, Sam.

您好，歡迎參加 Hillenbrand 2024 財年第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給投資者關係副總裁 Sam Mynsberge。請繼續，山姆。

Thank you, operator, and good morning, everyone. Welcome to Hillenbrand's earnings call for our first quarter of fiscal year 2024. I'm joined by our President and CEO, Kim Ryan; and our Senior Vice President and CFO, Bob VanHimbergen.

謝謝接線員，大家早安。歡迎參加 Hillenbrand 2024 財年第一季的財報電話會議。我們的總裁兼執行長 Kim Ryan 也加入了進來。以及我們的資深副總裁兼財務長 Bob VanHimbergen。

I'd like to direct your attention to the supplemental slides posted on our IR website that will be referenced on today's call. Turning to slide 3, a reminder that our comments may contain certain forward-looking statements that are subject to the Safe Harbor provisions of the securities laws. These statements are not guarantees of future performance, and our actual results could differ materially.

我想請您注意我們 IR 網站上發布的補充幻燈片，今天的電話會議將引用這些幻燈片。轉向投影片 3，提醒您我們的評論可能包含某些受證券法安全港條款約束的前瞻性陳述。這些陳述並不是對未來績效的保證，我們的實際結果可能會有重大差異。

Also, during the course of this call, we will be discussing certain non-GAAP operating performance measures, including organic comparisons for our segments, which exclude the impacts from acquisitions, divestitures, and foreign currency exchange. Also, we will be discussing our results on a continuing operations basis, which excludes the discontinued operations of Batesville, which we divested in February of last year.

此外，在本次電話會議期間，我們將討論某些非公認會計準則經營績效指標，包括對我們部門的有機比較，其中排除了收購、資產剝離和外匯兌換的影響。此外，我們將在持續經營的基礎上討論我們的業績，其中不包括我們於去年 2 月剝離的 Batesville 已終止的業務。

I encourage you to read the appendix and slide 3 of the presentation as well as our 10-Q, which can be found on our website, for a deeper discussion of non-GAAP information, forward-looking statements, and the risk factors that could impact our actual results.

我鼓勵您閱讀簡報的附錄和幻燈片 3 以及我們的 10-Q（可在我們的網站上找到），以更深入地討論非 GAAP 資訊、前瞻性陳述以及可能導致風險的因素。影響我們的實際結果。

With that, I'll now turn the call over to Kim.

現在，我將把電話轉給 Kim。

Thank you, Sam, and good morning, everyone. Thanks for joining us on today's call. Our first-quarter performance reflects the dynamic environment we continue to experience in certain parts of our business. Total revenue growth of 18% and adjusted earnings per share of $0.69 were in line with our expectations, led by strong performance from our recent FPM acquisition and our continued success in driving aftermarket expansion.

謝謝你，山姆，大家早安。感謝您參加今天的電話會議。我們第一季的業績反映了我們在某些​​業務領域繼續經歷的動態環境。總營收成長 18%，調整後每股收益 0.69 美元，符合我們的預期，這得益於我們最近收購 FPM 的強勁業績以及我們在推動售後市場擴張方面的持續成功。

We saw a sequential and year-over-year order improvement within our APS segment, with solid demand for our leading technologies and systems serving the plastics and food processing industries. However, we experienced weaker-than-expected performance in our MTS segment, with continued demand softness across most regions and end markets.

我們看到 APS 領域的訂單連續不斷逐年增長，對我們服務塑膠和食品加工行業的領先技術和系統的需求強勁。然而，我們的 MTS 細分市場的表現弱於預期，大多數地區和終端市場的需求持續疲軟。

Additionally, our cash flow was lower than expected due in part to softer orders within MTS and the continued pushout of large project orders within APS and the corresponding customer advances, which contributed to our leverage being slightly higher than expected while exiting the quarter.

此外，我們的現金流量低於預期，部分原因是 MTS 內的訂單疲軟以及 APS 內大型專案訂單的持續推出以及相應的客戶預付款，這導致我們在本季度退出時的槓桿率略高於預期。

We're not pleased with this current level of performance. So as we announced in our press release yesterday, we are responding by executing significant cost actions to optimize our MTS cost structure, including headcount reductions and footprint rationalization. We're confident these actions will not only strengthen our position within the current environment, but also ensure we're able to respond with higher levels of growth and profitability when demand recovers.

我們對目前的性能水準並不滿意。因此，正如我們在昨天的新聞稿中宣布的那樣，我們正在透過執行重大成本行動來優化我們的 MTS 成本結構，包括裁員和占地面積合理化。我們相信，這些行動不僅會加強我們在當前環境中的地位，而且還能確保我們能夠在需求恢復時以更高水平的增長和盈利能力做出反應。

We expect these actions will deliver annual run rate cost savings of $15 million, with approximately 50% of that to be realized within the current fiscal year, which will help mitigate the demand headwinds within the MTS segment. Bob will discuss this further in a moment when he gives an update on our financial performance and outlook.

我們預計這些行動將每年節省 1,500 萬美元的營運成本，其中約 50% 將在本財年內實現，這將有助於緩解 MTS 領域的需求阻力。鮑伯將在提供有關我們財務業績和前景的最新資訊時進一步討論這一點。

I'll now provide a little more color on the end market dynamics we're seeing across both segments. Starting with MTS, as I mentioned, we continued to see a challenging demand environment in the quarter, with overall orders down both year over year and sequentially on the back of broad-based softness led by weakness in consumer goods and electronics. While we anticipated volumes to be down due to the lower starting backlog, performance came in below what we expected, particularly for orders and margins.

現在，我將提供更多關於我們在這兩個細分市場中看到的終端市場動態的資訊。正如我所提到的，從 MTS 開始，我們在本季繼續面臨充滿挑戰的需求環境，整體訂單同比連續下降，原因是消費品和電子產品疲軟導致整體疲軟。雖然我們預期由於起始積壓量減少，銷售量將會下降，但業績卻低於我們的預期，尤其是訂單和利潤方面。

We did close a few larger projects in January, but we've yet to see a meaningful improvement in the overall trajectory of market demand as customer investments remain pressured by elevated interest rates, low machine utilization, and uncertainty in consumer consumption patterns. We continue to focus on controllable factors inside the business as we navigate this difficult external environment as evidenced by the meaningful cost actions we're taking.

我們確實在一月份關閉了一些較大的項目，但我們尚未看到市場需求整體軌跡出現有意義的改善，因為客戶投資仍然受到利率上升、機器利用率低和消費者消費模式不確定性的壓力。在應對這一困難的外部環境時，我們繼續專注於業務內部的可控因素，我們正在採取的有意義的成本行動證明了這一點。

Now turning to APS, starting with durable plastics, we were pleased with the healthy order demand for our large extrusion and material handling systems in Asia and the Middle East though the timing of customer decisions continues to be lumpy. While global macroeconomic factors are contributing factors to these delays, we've also seen the size of projects in both virgin plastics and recycling increased significantly, which in turn requires a longer relative quoting process. However, we also believe this trend is a competitive advantage for us as our equipment systems are optimal solutions for high output requirements.

現在轉向 APS，從耐用塑膠開始，我們對亞洲和中東大型擠出和材料處理系統的健康訂單需求感到滿意，儘管客戶決策的時間仍然不穩定。雖然全球宏觀經濟因素是造成這些延誤的因素，但我們也看到原生塑膠和回收項目的規模顯著增加，這反過來又需要更長的相對報價過程。然而，我們也相信這種趨勢對我們來說是一個競爭優勢，因為我們的設備系統是滿足高產量需求的最佳解決方案。

Lastly, as we expected coming into the year, we are starting to see improved lead times, both from our suppliers and as a result of HOM initiatives, which should allow us to convert our high backlog more efficiently going forward.

最後，正如我們預期的那樣，我們開始看到供應商和 HOM 舉措的結果是交貨時間有所改善，這將使我們能夠更有效地處理未來的大量積壓訂單。

Turning to food, we're excited to have FPM in the portfolio for a full quarter as our teams remain energized as they execute integration plans and go-to-market as the leading global provider of food processing technologies and integrated solutions.

談到食品，我們很高興將 FPM 納入整個季度的投資組合中，因為我們的團隊在執行整合計劃並作為全球領先的食品加工技術和整合解決方案進入市場時仍然充滿活力。

The breadth of our geographic footprint and the technology offering enables us to be a world-class solutions provider across the applications we serve, including baked goods, pet food, snacks and cereals, and many more. We continue to see solid order patterns and customer quote activity across most key applications and we remain excited by the growing pipeline of opportunities we see as a result of our enhanced portfolio.

我們的地理足跡和技術產品的廣度使我們能夠成為我們所服務的應用領域的世界一流的解決方案提供商，包括烘焙食品、寵物食品、零食和穀物等等。我們繼續在大多數關鍵應用程式中看到穩定的訂單模式和客戶報價活動，並且我們對由於我們增強的產品組合而看到的不斷增長的機會管道感到興奮。

Our integration activities, focused on both cost and commercial opportunities, continues to progress as expected. While we certainly face a dynamic and often challenging macro environment, I remain confident in our ability to execute our objectives through the remainder of the year as we deploy the Hillenbrand operating model to drive synergy realization, productivity, and working capital initiatives across the enterprise.

我們的整合活動重點關注成本和商業機會，並繼續按預期取得進展。雖然我們確實面臨著動態且經常充滿挑戰的宏觀環境，但我仍然對我們在今年剩餘時間內執行目標的能力充滿信心，因為我們部署了Hillenbrand 營運模式，以推動整個企業的協同效應實現、生產力和營運資本計畫。

With that, I'll now turn the call over to Bob to provide more details on financial performance and outlook.

現在，我將把電話轉給鮑勃，以提供有關財務業績和前景的更多詳細資訊。

Thanks, Kim, and good morning, everyone. Turning to our consolidated performance on slide 5, we delivered revenue of $773 million, an increase of 18% compared to the prior year, primarily due to the acquisition of FPM. On an organic basis, revenues decreased 7% year over year, primarily driven by lower volume in MTS, which we largely anticipated due to the lower starting backlog coming into the year. Adjusted EBITDA of $114 million increased 13%, but decreased 14% organically as lower volume and cost inflation more than offset favorable pricing, productivity, and product mix. We delivered adjusted EBITDA margin of 14.8%, a decrease of 60 basis points over the prior year.

謝謝金，大家早安。轉向幻燈片 5 中的綜合業績，我們實現了 7.73 億美元的收入，比上年增長 18%，這主要是由於收購了 FPM。從有機角度來看，營收年減 7%，主要是由於 MTS 銷售下降，我們很大程度上預計這是由於今年開始積壓訂單較少。調整後 EBITDA 為 1.14 億美元，成長 13%，但有機下降 14%，因為銷售下降和成本通膨抵消了有利的定價、生產力和產品組合。我們的調整後 EBITDA 利潤率為 14.8%，比上年下降 60 個基點。

We reported GAAP net income of $18 million, down from $25 million in the prior year, as the impact of the FPM acquisition was offset by lower organic volume, cost inflation, higher interest expense, a pension settlement charge, and a higher effective tax rate. Adjusted earnings per share of $0.69 decreased $0.01 or 1%. Our adjusted effective tax rate in the quarter was 28.6%, in line with expectations, but up 360 basis points compared to the prior year, primarily due to the non-repeat of the China technology tax incentive we received in Q1 last year.

我們報告的GAAP 淨利潤為1800 萬美元，低於上一年的2500 萬美元，因為收購FPM 的影響被較低的有機銷售、成本通膨、較高的利息支出、退休金結算費用和較高的有效稅率所抵銷。調整後每股收益為 0.69 美元，下降 0.01 美元，即 1%。本季調整後的有效稅率為 28.6%，符合預期，但較上年同期上升 360 個基點，主要是由於我們去年第一季不再享有中國技術稅收優惠。

Our cash flow from operations represented a use of $24 million in the quarter, which was $18 million unfavorable compared to the prior year, primarily due to lower earnings and the timing of working capital requirements. Capital expenditures were $12 million in the quarter, and we returned approximately $60 million to shareholders through our quarterly dividend.

本季我們的營運現金流使用了 2,400 萬美元，與前一年相比減少了 1,800 萬美元，這主要是由於收益下降和營運資金需求的時間安排。本季的資本支出為 1,200 萬美元，我們透過季度股息向股東返還約 6,000 萬美元。

Historically, Q1 is a lower relative cash flow quarter for Hillenbrand, but cash performance was below our expectations this quarter in part due to softer order performance. However, we maintain our expectation that cash conversion will be approximately 90% for fiscal 2024, which includes the impacts of restructuring and integration-related cash benefits that we expect to realize in the year. Our longer-term goal remains at 100% free cash flow conversion.

從歷史上看，第一季是 Hillenbrand 現金流相對較低的季度，但本季現金表現低於我們的預期，部分原因是訂單表現疲軟。不過，我們維持 2024 財年現金轉換率約為 90% 的預期，其中包括我們預計在今年實現的重組和整合相關現金收益的影響。我們的長期目標仍然是 100% 自由現金流轉換。

Now moving to segment performance, starting on slide 6. Revenue of $568 million increased 38% compared to the prior year, primarily driven by FPM. Organic revenue modestly decreased by 2% year over year as lower capital volume was partially offset by higher aftermarket parts and service revenue. While revenue came in slightly below our initial expectations, primarily due to timing of some larger orders, we still see healthy levels of demand to support our full-year organic growth.

現在轉向分段效能，從投影片 6 開始。營收為 5.68 億美元，較上年增長 38%，這主要是由 FPM 推動的。有機收入較去年小幅下降 2%，因為資本減少被售後零件和服務收入增加部分抵銷。雖然收入略低於我們最初的預期，主要是由於一些較大訂單的時間安排，但我們仍然看到健康的需求水準來支持我們的全年有機成長。

Adjusted EBITDA of $96 million increased 35% year over year, but decreased 3% organically as lower volume and cost inflation more than offset favorable pricing, productivity, and product mix. We delivered adjusted EBITDA margin in the quarter of 16.9%, which was down 40 basis points over the prior year, primarily due to cost inflation and the dilutive effect of the recent acquisitions. As we've communicated, we expect to improve the acquisition margins towards historical APS segment levels over the next few years as we achieve synergies and deploy the Hillenbrand operating model to drive continuous improvement. Backlog of $1.9 billion increased 18% compared to the prior year driven by FPM, but decreased 5% on an organic basis. Sequentially, backlog was up 3%.

調整後 EBITDA 為 9,600 萬美元，年增 35%，但由於銷售下降和成本上漲抵消了有利的定價、生產力和產品組合，有機下降了 3%。我們本季的調整後 EBITDA 利潤率為 16.9%，比上年下降 40 個基點，這主要是由於成本通膨和近期收購的稀釋效應。正如我們所傳達的，隨著我們實現協同效應並部署 Hillenbrand 營運模式以推動持續改進，我們預計未來幾年將收購利潤率提高到 APS 細分市場的歷史水平。在 FPM 的推動下，積壓訂單量為 19 億美元，與前一年相比增加了 18%，但有機減少了 5%。隨後，積壓訂單增加了 3%。

Now turning to MTS on slide 7. Revenue of $205 million decreased 16% year over year due to lower volume of injection molding and hot runner equipment. This was largely anticipated given the lower starting backlog entering the year, but we did see weaker-than-expected performance from our hot runner product line at the end of the quarter.

現在轉向幻燈片 7 上的 MTS。由於注塑和熱流道設備銷售下降，營收為 2.05 億美元，年減 16%。鑑於進入今年的起始積壓量較低，這在很大程度上是預料之中的，但我們確實看到本季末熱流道產品線的表現弱於預期。

Adjusted EBITDA of $32 million decreased 26% due to lower volume and cost inflation. Adjusted EBITDA margin of 15.7% decreased 200 basis points compared to the prior year, largely driven by the impact of lower volumes, particularly within our higher margin hot runner product line.

由於銷量下降和成本通膨下降，調整後 EBITDA 為 3,200 萬美元，下降了 26%。調整後的 EBITDA 利潤率為 15.7%，與前一年相比下降了 200 個基點，這主要是由於銷量下降的影響，特別是在我們利潤率較高的熱流道產品線中。

As Kim highlighted, we're launching a restructuring program in our MTS segment in order to improve operational efficiency and optimize our cost structure for the current environment, while also ensuring we remain poised for growth once market conditions improve. We expect to incur a restructuring charge related to these actions of approximately $20 million in the year, of annualized run rate savings of approximately $50 million by 2025. We're estimating approximately 50% of the run rate savings to be achieved in the current year, which I'll cover a bit more when I discuss our outlook for the remainder of the year.

正如 Kim 所強調的那樣，我們正在 MTS 部門啟動重組計劃，以提高營運效率並優化當前環境的成本結構，同時確保一旦市場狀況改善，我們仍能保持成長。我們預計今年將產生與這些行動相關的約 2000 萬美元的重組費用，到 2025 年年化運行率節省約 5000 萬美元。我們估計今年將實現約 50% 的運行率節省，當我討論今年剩餘時間的前景時，我將對此進行更多介紹。

Backlog of $232 million decreased 31% compared to the prior year, but was flat sequentially. While order volumes had been relatively flat throughout fiscal '23, we saw a further dip in injection molding orders in the quarter beyond what we had anticipated. As Kim mentioned, we did see a few large projects come through in January, but we do not yet believe this is necessarily a sign of broader improvement in the underlying market conditions.

積壓訂單 2.32 億美元比上年減少 31%，但與上一季持平。雖然整個 23 財年的訂單量相對持平，但我們發現本季注塑訂單量進一步下降，超出了我們的預期。正如 Kim 所提到的，我們確實在一月份看到了一些大型項目的完成，但我們還不認為這一定是基礎市場狀況更廣泛改善的跡象。

Now turning to the balance sheet on slide 8. Net debt at the end of the first quarter was $1.8 billion and the net debt to adjusted EBITDA ratio was 3.4. At quarter end, we had liquidity of approximately $650 million, including about $200 million in cash on hand and the remainder available under our revolving credit facility. While our ending leverage was up sequentially from 3.2, this was partially anticipated due to the regular seasonality of our cash flows. However, we did see additional unfavorability due to the lower-than-expected cash flow as well as an unfavorable impact at the end of the quarter from foreign currency exchange.

現在轉向投影片 8 上的資產負債表。第一季末淨債務為 18 億美元，淨債務與調整後 EBITDA 比率為 3.4。截至季末，我們的流動資金約為 6.5 億美元，其中包括約 2 億美元的手頭現金以及循環信貸額度下的剩餘現金。雖然我們的期末槓桿率從 3.2 連續上升，但由於我們現金流的定期季節性，這在一定程度上是預期的。然而，由於現金流低於預期以及季末外匯匯率的不利影響，我們確實看到了額外的不利因素。

Moving to our capital deployment priorities on slide 9, our capital deployment priorities are unchanged as debt reduction remains our top priority. Given the Q1 performance and uncertainty in the pattern of orders and working capital requirements, we now expect to return to our preferred net leverage range of 1.7 to 2.7 by Q2 of fiscal 2025, slightly delayed from our previous goal of Q1 2025. We are aggressively pursuing additional cost and cash synergies to accelerate our progress towards this timeframe.

轉到投影片 9 上我們的資本部署優先事項，我們的資本部署優先事項沒有變化，因為減少債務仍然是我們的首要任務。考慮到第一季的業績以及訂單和營運資金需求模式的不確定性，我們現在預計到2025 財年第二季將恢復到我們首選的淨槓桿範圍1.7 至2.7，這比我們之前的2025 年第一季度目標略有延遲。我們正在積極尋求額外的成本和現金協同效應，以加快我們在這一時間表上的進展。

I'll wrap up with our outlook for the remainder of 2024 on slide 10. We are maintaining our total company guidance range for the fiscal year, but expect to be towards the lower end due to weaker MTS performance, partially offset by approximately $8 million in restructuring savings expected to be realized in the year. As a reminder, our guidance ranges for total Hillenbrand are $3.28 billion to $3.44 billion for revenue, $530 million to $588 million for adjusted EBITDA, and $3.60 to $3.95 for adjusted EPS, reflecting solid organic growth in our APS segment and significant inorganic contribution from the FPM acquisition.

我將在投影片 10 上總結我們對 2024 年剩餘時間的展望。我們維持本財年的公司整體指導範圍，但由於 MTS 業績疲軟，預計該範圍將趨於下限，預計今年將實現約 800 萬美元的重組節省部分抵消。提醒一下，我們對Hillenbrand 總收入的指引範圍為32.8 億美元至34.4 億美元，調整後EBITDA 為5.3 億美元至5.88 億美元，調整後每股收益為3.60 至3.95 美元，反映了我們APS 部門的穩健有機成長以及來自FPM 收購。

For Q2, we are targeting adjusted earnings per share in the range of $0.71 to $0.76, which is relatively consistent to the prior year as the contribution of FPM and modest organic growth in APS is largely offset by a significant decline in MTS as the prior year was a record quarter for MTS. Please review slide 10 for additional guidance in assumptions.

對於第二季度，我們的目標是調整後每股收益在0.71 美元至0.76 美元之間，這與上一年相對一致，因為FPM 的貢獻和APS 的適度有機增長在很大程度上被去年MTS 的大幅下降所抵消MTS 創下了創紀錄的季度業績。請查看投影片 10 以獲取有關假設的更多指導。

In summary, as we look forward to the balance of the year, we continue to see a solid pipeline of demand in our APS segment, and we're confident the cost actions we're taking will help mitigate the market challenges within our MTS segment.

總之，在我們展望今年剩餘時間時，我們繼續看到 APS 細分市場的穩定需求，並且我們相信我們正在採取的成本行動將有助於緩解 MTS 細分市場的市場挑戰。

With that, I'll turn the call back over to Kim.

這樣，我會將電話轉回給 Kim。

Thanks, Bob. Before taking questions, I'll end our presentation this morning with a few final remarks. We remain laser-focused on deploying the Hillenbrand operating model to execute our integration and synergy plans, capitalize on innovation and other organic growth opportunities, improve our working capital metrics to drive cash flow and debt reduction, and take the appropriate actions to protect our margins.

謝謝，鮑伯。在回答問題之前，我將用一些最後的評論來結束今天早上的演講。我們仍然專注於部署 Hillenbrand 營運模式來執行我們的整合和協同計劃，利用創新和其他有機成長機會，改善我們的營運資本指標以推動現金流和債務減少，並採取適當的行動來保護我們的利潤。

As we navigate this dynamic macro environment, I'm all the more convinced in the strategic actions we've taken over the last two years in transforming Hillenbrand to leverage our technological capabilities by expanding into higher growth, less cyclical end markets that are supported by long-term secular growth trends. We're well positioned for the future as our teams are energized to serve our customers with world-class solutions as a global leader of highly engineered process technologies and systems united by our purpose to shape what matters for tomorrow.

當我們在這個充滿活力的宏觀環境中航行時，我更加相信我們在過去兩年中為實現Hillenbrand 轉型而採取的戰略行動，透過擴展到更高成長、週期性更小的終端市場來利用我們的技術能力，這些市場得到了以下方面的支持：長期長期成長趨勢。作為高度工程化工藝技術和系統的全球領導者，我們的團隊充滿活力，為客戶提供世界一流的解決方案，我們為未來做好了準備，我們的目標是塑造明天的事物。

We'll now open your line for questions.

我們現在將開通您的提問專線。

Thank you. (Operator Instructions) Matt Summerville, D.A. Davidson.

謝謝。（操作員說明）Matt Summerville，D.A.戴維森。

Thanks. A couple of questions, maybe just starting with APS. Can you put a little bit more context around the funnel within that business, some of the key metrics you're tracking, and how they look maybe versus a year or two ago? And if the order activity level you saw in Q1 is maybe an early indication that some of that log jam, if you will, may be moving in the right direction. And then I have a follow-up.

謝謝。有幾個問題，也許只是從 APS 開始。您能否提供更多有關該業務漏斗的背景資訊、您正在追蹤的一些關鍵指標以及它們與一兩年前相比的情況？如果您在第一季看到的訂單活動水平可能是早期跡象，表明某些日誌堵塞（如果您願意的話）可能正在朝著正確的方向發展。然後我有一個後續行動。

So I would say in the APS business, we have a very detailed funnel process that we have for each of the businesses, and especially given the duration of some of those quote processes, it's really critical that we have different milestones to make sure that we understand whether or not those are progressing -- everything from what types of resources are we putting in, what types of resources are the customers putting in -- to move these quotes ahead.

因此，我想說，在 APS 業務中，我們為每個業務都有一個非常詳細的漏斗流程，特別是考慮到其中一些報價流程的持續時間，我們有不同的里程碑來確保我們了解這些是否正在取得進展——從我們投入什麼類型的資源到客戶投入哪種類型的資源——以推動這些報價向前發展。

What I would say is that we continue to see a very, very positive demand for quotes and for work to be done in the regions that we had previously mentioned to you, that being Middle East, in China, in India, and have even continued to see some progression in other markets as we look forward to the remainder of the year in Europe and Africa and even some specific projects in North America. So we remain very encouraged about the quoting pipeline that we have.

我想說的是，我們繼續看到我們之前向您提到的中東、中國、印度等地區對報價和工作的需求非常非常積極，甚至還在繼續我們期待今年剩餘時間在歐洲和非洲，甚至北美的一些具體項目，看到其他市場取得一些進展。因此，我們對現有的報價管道仍然感到非常鼓舞。

We have seen a couple of orders cross over in early January. We kind of have a saying here: is it a dot, is it a line, is it a trend? At this point, I'd say it's a dot progressing to a line. So I think we are encouraged that we continue to see things moving ahead and moving through that pipeline in terms of how we assess orders. And the outlook that we have for, generally, most of the geographies we're doing business in, we continue to be very excited about what we see, both on the plastic side as well as on the food side, because remember, although we've been very focused on cost synergies on food, we're also very focused on creating commercial opportunities across these businesses as well.

我們在一月初看到了一些訂單的交叉。我們這裡有句話：它是一個點，它是一條線，它是一個趨勢嗎？在這一點上，我想說這是一個點發展成一條線。因此，我認為我們感到鼓舞的是，我們繼續看到事情正在向前發展，並在我們如何評估訂單方面沿著這條管道發展。一般來說，我們對我們開展業務的大多數地區的前景仍然感到非常興奮，無論是在塑料方面還是在食品方面，因為請記住，儘管我們我們一直非常注重食品的成本協同效應，我們也非常注重在這些業務中創造商業機會。

So hopefully, that addresses your questions, Matt.

希望這能解決你的問題，馬特。

Yes, thanks. And then just as a follow-up, you mentioned, or Bob mentioned, that MTS experienced a little bit of an incremental dip in orders following a couple of quarters, I thought, of stability. What end market geography is driving that incremental dip? And then can you elaborate on the magnitude of headcount reduction you're looking at as well as how you are rationalizing the footprint within MTS?

對了謝謝。然後，正如您所提到的，或者鮑勃所提到的，作為後續行動，在我認為穩定的幾個季度之後，MTS 的訂單出現了一點點的增量下降。什麼樣的終端市場地理正在推動增量下滑？然後您能否詳細說明您正在考慮的裁員規模以及如何合理化 MTS 內部的規模？

Yes, I would say that we had anticipated the -- we had seen several quarters of where we were. We were pretty flat in terms of the order demand. So while we were hoping for an uptick, we had at least seen stability. We saw a little bit of a dip in the last quarter, specifically in the areas of consumer goods, electronics, some of those areas which have typically been strong, and we have not seen the bounce back in China, in North America that we might have anticipated. At this point, there continues to be a lot of fighting for volume in that space, both in the injection molding and the hot runner side of the business. So that's one of the areas that has given us a little concern, and that's caused us to move ahead with some of the things that we needed to do from a cost standpoint.

是的，我想說，我們已經預料到了——我們已經看到了我們所處位置的幾個季度。我們的訂單需求相當穩定。因此，雖然我們希望有所上升，但我們至少看到了穩定性。我們在上個季度看到了一些下滑，特別是在消費品、電子產品領域，其中一些通常表現強勁的領域，我們還沒有看到中國和北美的反彈，我們可能會看到已經預料到了。目前，無論是在註塑成型領域還是熱流道業務方面，該領域的銷量爭奪戰仍在繼續。因此，這是讓我們有點擔心的領域之一，這促使我們從成本的角度推進一些我們需要做的事情。

Keep in mind that as we go through this, we are always planning for the future. And so I would say that we are making decisions that are appropriately sized for the demand trends that we've seen. And we are -- that are also taking into consideration where we expect the demand to return so that we can be prepared for that. This allows us to look at everything from creating flexibility in the way we manufacture our goods, leveraging partners, leveraging some of our suppliers to help with volume as we would want that to return.

請記住，當我們經歷這一切時，我們總是在為未來做計劃。因此，我想說，我們正在做出適合我們所看到的需求趨勢的決策。我們也在考慮我們預計需求將在哪裡恢復，以便我們能夠為此做好準備。這使我們能夠考慮一切，從我們製造產品的方式創造靈活性，利用合作夥伴，利用我們的一些供應商來幫助增加產量，因為我們希望這種情況能夠得到回報。

So the magnitude of that ends up being in kind of 5% of workforce type size. And then we anticipate there are a couple of opportunities for cost rationalization and simplification from a site perspective that we will also be engaging in.

因此，其規模最終約為勞動力類型規模的 5%。然後，我們預期從站點角度來看，我們也將參與一些成本合理化和簡化的機會。

And keep in mind we've got new eyes on that business, I think, that we've got a lot of work that has been done over the last four months in collaboration with the leaders in that business. And all are agree that these are appropriate actions to take that create an appropriate return even though we've got some one-time charges associated with that and that they will not hamper our flexibility to address volume as it comes back in this market, which it has always historically done.

請記住，我認為我們對該業務有了新的看法，在過去的四個月裡，我們與該業務的領導者合作完成了許多工作。所有人都同意，儘管我們收取了一些與此相關的一次性費用，但這些都是適當的行動，可以創造適當的回報，並且它們不會妨礙我們在市場恢復時處理交易量的靈活性，這歷史上一直都是這樣。

Daniel Moore, CJS Securities. (Operator Instructions)

丹尼爾·摩爾，CJS 證券。（操作員說明）

Can you dig a little deeper into the trends in APS? First, you mentioned some of the opportunities you're seeing in petrochem and plastics are on a large -- or very larger or larger side, of those primarily Middle East. Just talk about sort of geography as well as the timeframe, and what ultimate kind of margin profile of those slightly larger, or a typically larger projects, look like for you?

您能更深入地了解一下 APS 的趨勢嗎？首先，您提到您在石化和塑膠領域看到的一些機會主要集中在中東地區。只要談談地理位置和時間範圍，以及那些稍大或通常較大的項目對您來說最終的利潤狀況是什麼樣的？

On the polyolefin side, there is some buyout associated with those projects, but those projects are in places that we've indicated before, they're Middle East, they're China, they're India in terms of the really large polyolefin projects. And those are the places where we've been strong in quoting activity, we've been kind of waiting on order decisions. But we expect over the next 12 months for those to continue to be strong.

在聚烯烴方面，有一些與這些項目相關的收購，但這些項目位於我們之前指出的地方，就真正的大型聚烯烴項目而言，它們是中東、中國、印度。這些是我們報價活動強勁的地方，我們一直在等待訂單決定。但我們預計未來 12 個月這些將持續強勁。

The margin profiles, those are -- we feel very good about our ability to create value in those, especially as we're able to create more than just individual pieces of equipment offerings. We're able to create full systems. We are able to create value for customers and for ourselves as we're able to optimize those systems into those lines. And given that a lot of the folks developing in those areas are our multinational customers, those are relationships that we feel very confident about in terms of being able to provide full solutions. So those are some of the areas that we're seeing on the big polyolefin jobs.

利潤狀況是——我們對自己在這些方面創造價值的能力感到非常滿意，特別是因為我們能夠創造的不僅僅是單一設備產品。我們能夠創建完整的系統。我們能夠為客戶和我們自己創造價值，因為我們能夠將這些系統優化到這些生產線中。鑑於在這些領域發展的許多人都是我們的跨國客戶，我們對能夠提供完整的解決方案充滿信心。這些是我們在大型聚烯烴工作中看到的一些領域。

Very helpful. And on the food and pharma side, when you put all of the businesses together as you integrate them, if we think about pro forma order rates and the pipeline or funnel this time relative to maybe 12 months ago, where would you say we are overall year over year on a pro forma basis?

很有幫助。在食品和製藥方面，當你將所有業務放在一起進行整合時，如果我們考慮一下預計訂單率和渠道或漏斗，這次相對於 12 個月前，你會說我們的整體水平如何？逐年預估計？

Yeah, Dan. So obviously, we didn't have FPM in our portfolio a year ago. But when you look back at what they performed under that ownership, and then obviously with our legacy food health and nutrition business, and [that links us], orders actually on a year-over-year basis came in pretty strong, specifically within food. And so we feel good about long-term investments, the long-term view of that business. We feel great about the short term. That growth, again, in that business as we invested that food end market, we see that growing at GDP-plus. And everything we've seen here so far indicates that we made the right decision in those investments.

是的，丹。顯然，一年前我們的投資組合中還沒有 FPM。但是，當你回顧他們在該所有權下的表現，然後顯然是我們傳統的食品健康和營養業務以及[將我們聯繫起來]時，訂單實際上逐年增長，特別是在食品領域。因此，我們對長期投資、對該業務的長期看法感到滿意。我們對短期感覺很好。當我們投資食品終端市場時，我們看到該業務的成長速度超過了 GDP。到目前為止，我們在這裡看到的一切都表明我們在這些投資中做出了正確的決定。

Yes, we do feel very -- I mean, I had an opportunity to meet with the commercial teams on this two weeks ago, I guess it was, feels like forever, but we had an opportunity to listen to a report out from these teams two weeks ago on all the opportunities they're seeing across the portfolio. And really, when you think about what we've brought together here, the feeding, the additive ingredient handling, the pneumatic conveying, the multiple conversion steps, whether it's mixing, whether it's extrusion, whether it's very high-end extrusion or less complex extrusion, the material handling again and the end-of-the-line processing, and the storage capabilities that we have through all of the assets that we acquired, this is really going to be an exciting portfolio to be able to offer into the marketplace.

是的，我們確實感覺非常 - 我的意思是，兩週前我有機會與商業團隊會面，我想這是，感覺就像永遠，但我們有機會聽取這些團隊的報告兩週前他們在投資組合中看到的所有機會。實際上，當您想到我們在這裡匯集的內容時，進料、添加劑成分處理、氣力輸送、多個轉換步驟，無論是混合、擠出、非常高端的擠出還是不太複雜的擠出擠壓、再次材料處理和生產線末端處理，以及我們透過我們收購的所有資產擁有的儲存能力，這確實將是一個能夠向市場提供的令人興奮的產品組合。

And we've got the addition of having the Schenck team join us, which has a lot of experience in managing these larger projects. So as we're able to work these projects into the market, we've got a ready and experienced team that can work hand-in-hand with us to be able to take these projects to fruition. I can tell you the team is really thrilled about the opportunities they're seeing. And frankly, they are running as fast as we will let them on finding ways to collaborate together. And it's really invigorating to see.

我們也邀請了 Schenck 團隊加入我們，他們在管理這些大型專案方面擁有豐富的經驗。因此，當我們能夠將這些項目推向市場時，我們擁有一支準備就緒且經驗豐富的團隊，可以與我們攜手合作，使這些項目取得成果。我可以告訴你，團隊對他們看到的機會感到非常興奮。坦白說，他們的運行速度與我們允許他們尋找合作方式的速度一樣快。看到它真的很令人振奮。

Excellent. Just shifting gears to MTS, I guess two questions. First, do you have much visibility or line of sight as to when you may see kind of a bottom in terms of orders? I know that's a challenge given hot runner business is traditionally short cycle. And second, in the past, it's been quite cyclical with hot runners, and in particular, often rebounding sharply. Do you anticipate that could be the case again this time around? Or has anything fundamentally changed that might make it a little bit more gradual? I guess, what I'm trying to ask, is demand permanently shifted lower? Or is there reason to believe that eventually we'll get back to the levels that we saw a couple of years ago?

出色的。只是換檔到 MTS，我想有兩個問題。首先，對於訂單何時觸底，您是否有足夠的洞察力或視線？我知道這是一個挑戰，因為熱流道業務傳統上週期較短。其次，在過去，熱流道的周期性非常明顯，尤其是經常急劇反彈。您預計這次會再次出現這種情況嗎？或者有什麼根本性的改變可能會讓事情變得更漸進嗎？我想，我想問的是，需求是否會永久降低？或者有理由相信我們最終會回到幾年前的水平？

Well, I think I'll just hit some macro trends in the market that I think will -- I think are noteworthy. So as it pertains to kind of that demand bouncing back, I think that China has always been a very leading indicator of that, and that has been -- that market has been a bit slower and has not bounced back as quickly as we would have anticipated. Parts of that are, I think, some uncertainty in the geopolitical environment. Parts of that are as some customers, some manufacturers making choices about, hey, do I want to have my entire footprint sitting in China? Or should I diversify my footprint into areas like India?

好吧，我想我會觸及市場上的一些宏觀趨勢，我認為這些趨勢值得注意。因此，就需求反彈而言，我認為中國一直是這方面的一個非常領先的指標，而且市場的速度有點慢，並且沒有像我們希望的那樣快速反彈。預計。我認為，部分原因是地緣政治環境的一些不確定性。其中部分原因是一些客戶、一些製造商做出選擇，嘿，我想把我的整個足跡都放在中國嗎？還是我應該將足跡多元化到印度等地區？

As you know, we have locations in India, which are offering the same types of capabilities and turnaround time, lead times, engineering capabilities to the customers that we serve in China. So we believe that we are well positioned to be able to catch that business as it moves into other geographies in Asia. So we do feel prepared for that. But I would say there is some slowness in the final decisions being made about where that footprint will reside.

如您所知，我們在印度設有分支機構，為我們在中國服務的客戶提供相同類型的能力、週轉時間、交貨時間、工程能力。因此，我們相信，當該業務進入亞洲其他地區時，我們有能力抓住該業務。所以我們確實為此做好了準備。但我想說的是，關於足跡所在位置的最終決定有些緩慢。

And I would also say that given some of the slowness that has characterized this end market for the last period of time, I think there is a lot of volume that's trying to find a home. And so I think that does create a lot of pricing pressure, margin pressure at this time as people work to maintain coverage for their own fixed costs in an environment where the market is kind of undersized for the competitive footprint that sits there right now.

我還想說，考慮到過去一段時間這個終端市場的一些緩慢特徵，我認為有大量的交易量正在試圖找到一個下家。因此，我認為這確實會造成很大的定價壓力和利潤壓力，因為人們努力維持自己固定成本的覆蓋範圍，而市場規模相對於目前的競爭足跡來說有點小。

And I'll turn it to Bob to hit some of the other points.

我將把它交給鮑勃來解決其他一些問題。

Yes, I think you actually summarized it well, Kim. You know, Dan, you think about the MTS market overall and our view of the first quarter, things were actually pretty on par for the first couple of months. And then December is where we saw a bit deeper depth than what we anticipated. Now, January, we actually had a little bit of upside compared to what we thought, right? We've been here before, and as Kim said, those are dots, not a line or a trend yet.

是的，我認為你總結得很好，金。你知道，丹，你想想 MTS 市場的整體情況以及我們對第一季的看法，前幾個月的情況實際上相當不錯。然後 12 月我們看到了比我們預期更深的深度。現在，一月份，與我們想像的相比，我們實際上有一點好處，對吧？我們以前來過這裡，正如 Kim 所說，這些只是點，還不是線或趨勢。

So you think about past cycles, the MTS cycle has been down, call it, five, six quarters is what that cycle looks like. And we've projected about eight in our guidance. And it is a short-cycle business so I think we're doing the right thing with the restructuring. When the market does return, we feel confident that we can take advantage of our position even in light of a reduced workforce.

所以你想想過去的週期，MTS 週期已經下降，稱之為，五個、六個季度就是這個週期的樣子。我們在指導中預測了大約八個。這是一個短週期的業務，所以我認為我們的重組是正確的。當市場確實回歸時，我們有信心即使在勞動力減少的情況下也可以利用我們的地位。

Helpful. Last one and I'll jump out. Just, obviously, given the kind of lingering softness in MTS and Q2 guide being a little later than at least we'd expected, would you say the lower end of the full-year guidance range is more likely from an EBITDA and adjusted EPS perspective? Or are the cost reduction actions you're taking enough to kind of balance it out and makes the full-year picture more balanced relative to where you thought coming into the year? Thanks again.

有幫助。最後一張我就跳出去了很明顯，考慮到 MTS 和第二季度指導的持續疲軟至少比我們預期的要晚一些，您是否認為從 EBITDA 和調整後每股收益的角度來看，全年指導範圍的下限更有可能？或者，您正在採取的成本削減措施是否足以平衡成本，並使全年情況相對於您預計的今年情況更加平衡？再次感謝。

Yes, sure. So we feel good about where APS sits within our guidance range at that midpoint, Dan, and on the MTS side, probably on the lower end. And as you recall, when we gave guidance a couple of months ago, we did have a wider range, just in case we didn't see that snap back. We were thinking a modest recovery in MTS. We still think that's on the table. But again, Q1 is a little bit lower than what we anticipated. So we're expecting the lower end of the guide on the MTS piece. And obviously, the average of APS and MTS would put us at the lower end of the overall guidance. And then on the restructuring, that does embed the savings from the restructuring actions. So net-net, we're going to be at the lower end on MTS.

是的，當然。因此，我們對 APS 在我們指導範圍內的中點位置感到滿意，Dan，在 MTS 方面，可能位於下端。正如你所記得的，當我們幾個月前給出指導時，我們確實有一個更廣泛的範圍，以防萬一我們沒有看到這種反彈。我們原本認為 MTS 會溫和復甦。我們認為這仍然是擺在桌面上的事情。但同樣，第一季的數據略低於我們的預期。所以我們期待 MTS 指南的下半部分。顯然，APS 和 MTS 的平均值將使我們處於整體指導的下限。然後在重組方面，這確實包含了重組行動帶來的節省。因此，我們將處於 MTS 的低端。

John Franzreb, Sidoti & Company.

約翰‧弗蘭茲雷布 (John Franzreb)，西多蒂公司 (Sidoti & Company)。

Kim, in your response to the last question, you mentioned the pricing environment's gotten more challenging. I'm curious if that's limited to China, which had been the case, if I remember correctly? Or is that spread to other geographies?

Kim，在回答最後一個問題時，您提到定價環境變得更具挑戰性。我很好奇這是否僅限於中國，如果我沒記錯的話，情況就是如此？或者這種情況已蔓延到其他地區？

No, I think the geographies are -- I think we're seeing that in a number of regions. I'll let Bob comment a little bit further on some of the details about.

不，我認為地理位置是——我認為我們在許多地區都看到了這一點。我將讓鮑勃進一步評論一些細節。

Yeah, I think that's right. So Kim and John, yeah. So we're seeing pricing pressure really across all regions, particularly in MTS, sort of customers in North America becoming certainly price sensitive. And therefore, we need to react to really maintain our share. Same thing in China; we're seeing aggressive discounting in that region as well.

是的，我認為這是對的。所以金和約翰，是的。因此，我們看到所有地區都面臨定價壓力，尤其是 MTS，北美的客戶肯定對價格變得敏感。因此，我們需要做出反應，以真正維持我們的份額。在中國也是如此；我們也看到該地區大幅打折。

So the thing about MTS., we're likely going to be less than 100% price cost covered. However, APS, we're going to be above 100%. And so net-net Hillenbrand, we will be still price cost favorable at the consolidated level.

因此，關於 MTS，我們的價格成本覆蓋可能會低於 100%。然而，APS，我們將超過 100%。因此，淨淨希倫布蘭德（net-net Hillenbrand）在綜合水平上仍將具有有利的價格成本。

Got it. Understood. And Bob, I think you said in your prepared remarks that APS had some delayed shipments in the quarter. I'm curious, what was the magnitude of those shipment delays and had they been shipped in the first quarter -- I'm sorry, in the fourth quarter?

知道了。明白了。鮑勃，我想您在準備好的發言中說過，APS 本季度的發貨有一些延遲。我很好奇，這些發貨延誤的嚴重程度是多少？它們是否是在第一季發貨的——抱歉，是在第四季度發貨的嗎？

Yes. So just a little bit -- just timing on some parts, quite honestly, John, so we can ship those large orders. So those are about $5 million of an impact in the quarter, and those will go out in Q2.

是的。約翰，說實話，只是一點點——只是在某些零件上計時，這樣我們就可以運送那些大訂單。因此，本季的影響約為 500 萬美元，這些影響將在第二季消失。

Got it. And Kim, I'm curious about what your thoughts are on APS' backlog, which is kind of elevated still. Is it actually a hindrance at some point? Are you incurring over time you might not have needed? Just maybe some thoughts at a high level about the APS backlog.

知道了。Kim，我很好奇您對 APS 的積壓工作有何看法，該積壓工作仍然較多。它實際上在某些時候是一個障礙嗎？隨著時間的推移，您是否會產生原本不需要的費用？也許只是一些關於 APS 積壓的高層想法。

Yes, I would say that it's a bit elevated for what would be most optimal. When you've got a lot of backlog, you've got to touch and retouch things a couple of more times than you would like. But at this point, frankly, I'll take the orders and we'll work through the backlog and we'll continue to manage that. I would say that this is -- when you look historically at the level of backlog that we would typically operate this business on, we are at an exceptionally elevated level to what we used to years ago.

是的，我想說，對於最理想的情況來說，它有點高。當你有大量積壓的工作時，你必須比你想要的多幾次觸摸和修改。但坦白說，在這一點上，我將接受訂單，我們將處理積壓的訂單，我們將繼續管理它。我想說的是，當你從歷史上看我們通常經營這項業務的積壓水平時，我們的水平比幾年前的水平要高得多。

What we used to do in terms of regular backlog level, I would say we're in the neighborhood of 50% to 75% higher than what we used to operate at. But lead times are longer from suppliers still, that's a factor. And the amount of large orders in the backlog has continued to increase over time.

就我們過去的常規積壓水準而言，我想說我們比過去的營運水準高出 50% 到 75% 左右。但供應商的交貨時間仍然較長，這是一個因素。且積壓的大訂單數量隨著時間的推移而不斷增加。

And I think that that's a direct reflection of the value proposition that we've been able to take into the marketplace, especially in that polyolefin arena. And I do think that the attractiveness of the portfolio and being able to be a systems provider in certain applications has a real attractiveness for customers in having one vendor that really understands how to optimize all of that and bring it together for best performance in their manufacturing locations.

我認為這直接反映了我們能夠進入市場的價值主張，特別是在聚烯烴領域。我確實認為，產品組合的吸引力以及能夠成為某些應用中的系統提供者對客戶來說具有真正的吸引力，因為擁有一個真正了解如何優化所有這些並將其整合在一起以在製造中獲得最佳性能的供應商地點。

And so a bit of that is a reflection of the fact that we don't just sell equipment. We do sell systems, and that has increased over the last couple of years. So a little higher than might be optimal, but again, I'll take it every day.

這在一定程度上反映了我們不只是銷售設備。我們確實銷售系統，並且在過去幾年中有所增加。所以比最佳值稍高一點，但我還是會每天服用。

We've reached the end of our question-and-answer session. I'd like to turn the floor back over to Kim for any further or closing comments.

我們的問答環節已經結束。我想將發言權交還給 Kim，以徵求進一步或結束評論的意見。

Great. Thanks again for joining us on the call today. We appreciate your ownership and interest in Hillenbrand and look forward to talking to you all again in May when we report our fiscal second-quarter results. Have a great day.

偉大的。再次感謝您今天加入我們的電話會議。我們感謝您對 Hillenbrand 的所有權和興趣，並期待在 5 月我們報告第二財季業績時再次與您交談。祝你有美好的一天。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。