Helios Technologies Inc (HLIO) 2024 Q1 法說會逐字稿

Greetings, and welcome to the Helios Technologies first-quarter 2024 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

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

It is now my pleasure to introduce your host, Tania Almond, Vice President of Investor Relations and Corporate Communications for Helios Technologies. Thank you. You may begin.

現在我很高興向您介紹主持人，塔妮亞·阿爾蒙德 (Tania Almond)，她是 Helios Technologies 投資者關係和企業傳播副總裁。謝謝。你可以開始了。

Thank you, operator, and good day, everyone. Welcome to the Helios Technologies first-quarter 2024 financial results conference call. We issued a press release announcing our results yesterday afternoon. If you do not have that release, it is available on our website at hlio.com. You will also find slides there that will accompany our conversation today.

謝謝您，接線員，大家好。歡迎參加 Helios Technologies 2024 年第一季財務業績電話會議。我們昨天下午發布了一份新聞稿，宣布了我們的結果。如果您沒有該版本，可以在我們的網站 hlio.com 上取得。您還可以在那裡找到伴隨我們今天談話的幻燈片。

On the line with me are Josef Matosevic, our President and Chief Executive Officer; and Sean Bagan, our Chief Financial Officer. They will review our first-quarter results along with our outlook for 2024. We will then open the call to your questions.

和我一起在線的是我們的總裁兼首席執行官約瑟夫·馬托舍維奇 (Josef Matosevic)；以及我們的財務長 Sean Bagan。他們將審查我們第一季的業績以及我們對 2024 年的展望。然後我們將開始電話詢問您的問題。

If you turn to slide 2, you will find our Safe Harbor statement. As you may be aware, we will make some forward-looking statements during this presentation and the Q&A session. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ materially from those presented today. These risks and uncertainties and other factors have been provided in our 10-K filling as well as our upcoming 10-Q to be filed with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov.

如果您翻到投影片 2，您會找到我們的安全港聲明。如您所知，我們將在本次演示和問答環節中做出一些前瞻性陳述。這些陳述適用於受風險和不確定性以及其他可能導致實際結果與今天呈現的結果有重大差異的因素影響的未來事件。這些風險和不確定性以及其他因素已在我們的 10-K 填寫以及即將向美國證券交易委員會提交的 10-Q 中提供。您可以在我們的網站或 sec.gov 上找到這些文件。

I'll also point out that during today's call, we will discuss some non-GAAP financial measures, which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides. Please reference slide 3 and 4 now.

我還要指出，在今天的電話會議中，我們將討論一些非公認會計準則財務指標，我們認為這些指標有助於評估我們的績效。您不應孤立地考慮此附加資訊的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。我們在今天的投影片隨附的表格中提供了可比較 GAAP 與非 GAAP 指標的調整表。現在請參考投影片 3 和 4。

With that, it's my pleasure to turn the call over to Josef.

至此，我很高興將電話轉給約瑟夫。

Tania, thank you, and welcome everyone. We had a solid start to the year, and our results validate our commitment and ability to deliver to plan. Our Helios team continues to demonstrate the dedication to keeping our promises and meeting our responsibilities to customers. Thank you to the global team for a great quarter out of the gate.

塔妮亞，謝謝你，歡迎大家。我們今年有一個良好的開端，我們的結果驗證了我們按計劃交付的承諾和能力。我們的 Helios 團隊繼續致力於信守承諾並履行對客戶的責任。感謝全球團隊在這個季度的出色表現。

I am encouraged with the improvement over the fourth quarter, with demand stepping up in all regions. We just completed a trip to Asia and not only are we starting to see green shoots in our results there, but we see long-term opportunity for real growth. While global geopolitical and macroeconomic conditions remain somewhat in limbo, there are clearly pockets of strength regionally and by end market.

我對第四季的改善感到鼓舞，所有地區的需求都在增加。我們剛完成了亞洲之行，我們不僅開始看到我們在那裡的成果的萌芽，而且我們看到了真正成長的長期機會。儘管全球地緣政治和宏觀經濟狀況仍有些懸而未決，但區域和終端市場顯然存在一些優勢。

The higher volume, financial discipline, and the structured actions we took to protect the business delivered strong sequential improvement. We saw this in our margins which we expect will continue to expand as we keep executing our plan. Importantly, we are comfortable with affirming our previous guidance for 2024.

更高的銷售、財務紀律以及我們為保護業務而採取的結構化行動帶來了強勁的連續改進。我們在我們的利潤中看到了這一點，我們預計隨著我們繼續執行我們的計劃，利潤將繼續擴大。重要的是，我們很樂意確認先前對 2024 年的指導。

Behind the scenes, we continue to make great headway as a newly integrated operating company. We have in hand a couple of new sub-systems wins and have officially entered the commercial food service space. And we have only just begun. We expect this market to become meaningful for us over the next several years. Importantly, we have created innovative, sticky solutions that add value in every application.

在幕後，我們作為一家新整合的營運公司繼續取得巨大進展。我們已經贏得了幾個新的子系統，並正式進入商業食品服務領域。而我們才剛開始。我們預計這個市場在未來幾年對我們來說將變得有意義。重要的是，我們創建了創新、黏性的解決方案，為每個應用增加價值。

Our innovations can provide better end user control, remote access, and greater durability with lower power consumption enhancing total cost of ownership. We continue to advance several other opportunities, as we leverage our unique position at the intersection of hydraulics and electronics. In fact, all the opportunities we previously described are still in play and we continue to work closely with our customers to identify new ones.

我們的創新可以提供更好的最終用戶控制、遠端存取和更高的耐用性，同時降低功耗，從而提高整體擁有成本。我們利用我們在液壓和電子交叉領域的獨特地位，繼續推進其他幾個機會。事實上，我們之前描述的所有機會仍然存在，我們將繼續與客戶密切合作，尋找新的機會。

As we have brought the various pieces together, through flywheel acquisitions and internal innovation, our system solution offerings are really starting to resonate with our customers. This has been repeatedly validated through direct feedback received from our recent customer visits.

當我們透過飛輪收購和內部創新將各個部分整合在一起時，我們的系統解決方案產品真正開始引起客戶的共鳴。我們最近訪問客戶時收到的直接回饋已經反覆驗證了這一點。

Many of our distributors are making significant expansions to their own capacity gearing up to grow with us. They understand the strategic value and opportunity in participating in sub-system sales with Helios and are already selling several examples in the market today.

我們的許多經銷商正在大幅擴展自己的產能，準備與我們一起成長。他們了解參與 Helios 子系統銷售的策略價值和機會，並且目前已經在市場上銷售多個範例。

Just as exciting, we also announced that we have partnered with WaterGuru. As you know, having clean and balanced water is a critical factor for any water-based application. We are bringing to market an industry leading water sensing and automated treating solution for the spa, plunge pool, and cold plunge markets.

同樣令人興奮的是，我們也宣布與 WaterGuru 合作。如您所知，擁有清潔且平衡的水是任何水基應用的關鍵因素。我們正在向市場推出領先業界的水感和自動化處理解決方案，適用於水療中心、小型泳池和冷水池市場。

This is a truly unique collaboration where we are exclusively licensing and integrating their patented technology for the worldwide spa OEM market. This is another example of how Helios is a leader in driving innovation for the markets we serve. Additionally, this will provide another recurring revenue opportunity for our business model. You will hear more about this as the year progresses.

這是一次真正獨特的合作，我們為全球水療 OEM 市場獨家授權並整合他們的專利技術。這是 Helios 如何成為我們所服務的市場推動創新的領導者的另一個例子。此外，這將為我們的商業模式提供另一個經常性收入機會。隨著時間的推移，你會聽到更多關於此事的資訊。

Finally, as a part of our integration progress, we are improving our financial forecasting and instilling stronger financial processes and discipline across all the organizations. All of our operating companies are more tied into our strategy than ever before.

最後，作為整合進程的一部分，我們正在改進我們的財務預測，並在所有組織中灌輸更強大的財務流程和紀律。我們所有的營運公司都比以往任何時候都更加緊密地融入我們的策略。

I will now turn the call over to Sean to discuss the progress we saw this quarter through our results. Sean, please.

我現在將把電話轉給肖恩，討論我們本季透過業績的進展。肖恩，請。

Thank you, Josef and hello, everyone. I will start to review first-quarter results talking to slides 5 through 11. As we enter a new year, we took the opportunity to redesign our earnings presentation. We streamlined some repetitive data out between these slides and the press release. In addition, we have incorporated new insights on our operational performance and the markets we serve.

謝謝你，約瑟夫，大家好。我將開始透過投影片 5 至 11 回顧第一季的業績。當我們進入新的一年時，我們藉此機會重新設計了我們的收益報告。我們簡化了這些投影片和新聞稿之間的一些重複數據。此外，我們也對我們的營運績效和我們所服務的市場提出了新的見解。

Moving to the first-quarter results, sales came in at $212 million, above our expectations due to stronger demand and order fulfillment at our Balboa business. This drove the increase in Electronics revenue, both year over year and sequentially. Compared with the fourth quarter, hydraulics came off a low base as the mobile market and the APAC region really began to turn positive.

轉向第一季業績，由於巴爾博亞業務的需求和訂單履行更加強勁，銷售額達到 2.12 億美元，超出了我們的預期。這推動了電子產品收入的同比和環比增長。與第四季相比，隨著行動市場和亞太地區真正開始轉好，液壓產業的基數較低。

We expect that normalization of inventories, order patterns, and demand will provide moderate support through the year from these categories. In addition, our new Hydraulic Manifold Solutions Center of Excellence located in Mishawaka, Indiana, is continuing to ramp up.

我們預計庫存、訂單模式和需求的正常化將為這些類別提供全年的適度支援。此外，我們位於印第安納州米沙沃卡的新液壓歧管解決方案卓越中心正在繼續擴大規模。

Geographically, we were up in all regions quarter over quarter. Compared with last year, we had improvements in the Americas and APAC of 1% and 5%, respectively. There was a 7% decline in EMEA, reflecting the slowing of the broader agricultural market as well as other geopolitical impacts continues to negatively impact the region.

從地理來看，我們在所有地區的業績都比上季有所成長。與去年相比，我們在美洲和亞太地區的成長分別為 1% 和 5%。歐洲、中東和非洲地區下降了 7%，反映出更廣泛的農業市場放緩以及其他地緣政治影響繼續對該地區產生負面影響。

On a year-over-year basis, health and wellness is performing strong. We expect the spring season to remain solid while the latter half of the year will likely level off, more so from a seasonality perspective. Marine, agriculture, and recreational vehicle markets are in various stages of their own cycles and for now have moderated at a lower level compared with the last few years. The improvement in volume helped drive gross profit up 22%.

與去年同期相比，健康和保健表現強勁。我們預計春季將保持穩定，而下半年可能會趨於平穩，從季節性角度來看更是如此。海洋、農業和休閒車市場正處於各自周期的不同階段，與過去幾年相比，目前的放緩程度較低。銷量的改善帶動毛利成長 22%。

Gross margin expanded 310 basis points compared with last year’s fourth quarter with further room for improvement as the year progresses. Gross profit declined $3.8 million and gross margin contracted 160 basis points year-over-year to 31.7%.

與去年第四季相比，毛利率成長了 310 個基點，隨著時間的推移，還有進一步改善的空間。毛利下降 380 萬美元，毛利率年減 160 個基點至 31.7%。

As a reminder, our health and wellness business has a lower average gross margin profile that is offset with lower SEA expenses which in a normalized capacity utilization structure gets to a very similar operating margin as the rest of our electronics segment. As it is ramping back to full capacity, to the degree that it outperforms our plan, we can have a short-term mix impact.

提醒一下，我們的健康和保健業務的平均毛利率較低，但被較低的 SEA 費用所抵消，在標準化的產能利用率結構中，我們的營業利潤率與我們電子部門的其他業務非常相似。隨著它逐漸恢復到滿載運轉，並且超出了我們的計劃，我們可能會產生短期的混合影響。

Of course, we have focused actions we are taking to continue to improve productivity, rationalize costs, and deliver higher margin profile solutions which will also continue elevating those margins. Non-GAAP adjusted operating margin of 14.5% in the quarter is nearly 200 basis points above our low in the trailing quarter. Our facilities are positioned to realize further operating leverage inherent in the business as our volumes continue to grow along with disciplined pacing of investments and expenses.

當然，我們正在採取重點行動，繼續提高生產力、合理化成本並提供更高利潤率的解決方案，這也將繼續提高這些利潤率。本季非 GAAP 調整後營運利潤率為 14.5%，比上一季的低點高出近 200 個基點。隨著我們的產量隨著投資和支出的嚴格節奏而不斷增長，我們的設施旨在實現業務固有的進一步營運槓桿。

We were encouraged by the improvements delivered in the first quarter but acknowledge we are not yet optimized and still have work to do to get back to historical financial returns. We have added in both cost of goods sold and operating expenses reflecting our investments to expand our capabilities and capacity. We expect these investments to yield expanded volume and to grow into higher margin business, enabling us to revisit historical return levels.

我們對第一季實現的改進感到鼓舞，但承認我們尚未優化，仍然需要努力才能恢復歷史財務回報。我們增加了銷售成本和營運費用，反映了我們為擴大能力和產能而進行的投資。我們預計這些投資將擴大產量並發展成為利潤率更高的業務，使我們能夠重新審視歷史回報水平。

Year-over-year adjusted EBITDA in the quarter of $38.6 million or 18.2% of sales contracted 210 basis points for all the reasons I have discussed. Encouragingly and despite the unfavorable segment sales mix, the sequential improvement of 150 basis points reflects the impact of our focused efforts to deliver profitable sales growth and disciplined spending.

由於我已經討論過的所有原因，本季調整後的 EBITDA 為 3860 萬美元，佔銷售額的 18.2%，比去年同期下降了 210 個基點。令人鼓舞的是，儘管細分市場銷售組合不利，但 150 個基點的連續改善反映了我們集中努力實現盈利銷售成長和嚴格支出的影響。

Our effective tax rate in the first quarter was 23.2%. This is driven by the regional mix of different tax jurisdictions and the impact of discrete items. Diluted non-GAAP EPS of $0.53 in the quarter reflects the impacts I’ve mentioned. It also includes a $0.04 impact from increased interest expense from higher interest rates and average debt balances compared with last year.

第一季我們的有效稅率為23.2%。這是由不同稅收管轄區的區域組合和離散項目的影響所推動的。本季稀釋後非 GAAP 每股收益為 0.53 美元，反映了我提到的影響。與去年相比，還包括利率上升和平均債務餘額增加導致的利息支出增加 0.04 美元的影響。

Briefly by segment, on slide 9, you will find the first-quarter review of our hydraulics segment. Sales were up 7%, over the trailing period with improvements very broad based across nearly all markets. Sales were down 4% over the prior year across several end markets against more challenging comparables despite the benefit of $1.9 million in acquired revenue. We had a $0.2 million unfavorable foreign exchange impact to the segment compared to the prior-year period.

在投影片 9 上，您將按細分市場簡要了解我們液壓細分市場的第一季回顧。過去一段時間，銷售額成長了 7%，幾乎所有市場都有廣泛的改善。儘管獲得了 190 萬美元的收入，但與更具挑戰性的可比較市場相比，幾個終端市場的銷售額比去年下降了 4%。與去年同期相比，我們對該部門產生了 20 萬美元的不利外匯影響。

Sequentially, hydraulics sales improved a relatively healthy $8.7 million. Sequentially, gross profit increased $3.3 million, or 8%, and gross margin expanded 50 basis points reflecting the growing volume. Gross profit declined $5.5 million year over year resulting in gross margin contraction of 260 basis points primarily due to fixed cost absorption on lower volume and higher labor costs.

隨後，液壓系統銷售額成長至相對健康的 870 萬美元。隨後，毛利增加了 330 萬美元，即 8%，毛利率擴大了 50 個基點，反映出銷量的成長。毛利年減 550 萬美元，導致毛利率收縮 260 個基點，主要是由於產量減少和勞動成本上升導致固定成本吸收。

SEA expenses grew $0.9 million or 2% with the prior-year period. Our cost containment measures helped to offset the run-rate impacts of acquisitions with labor and operating costs while maintaining our investments in R&D.

SEA 支出較上年同期成長 90 萬美元，即 2%。我們的成本控制措施有助於抵銷收購對勞動力和營運成本的運作率影響，同時維持我們的研發投資。

Please turn to slide 10, and we’ll discuss the electronics segment. Given its US sales concentration, foreign currency has nominal effects for this segment currently. Year over year, electronics sales improved by $4.1 million or 6%, including $2.0 million in revenue from acquisitions. Double-digit growth in health and wellness along with positive contribution from off-road vehicles partially offset by the continued weakness in the marine and industrial end markets.

請翻到投影片 10，我們將討論電子領域。鑑於其銷售集中於美國，外匯目前對該細分市場有名義影響。電子產品銷售額年增 410 萬美元，即 6%，其中包括來自收購的 200 萬美元收入。健康和保健領域的兩位數增長以及越野車的積極貢獻部分被海洋和工業終端市場的持續疲軟所抵消。

Sequentially, the electronics segment expanded $9.9 million, or 17%, driven by double-digit growth in health and wellness and modestly improving conditions in the industrial markets. Higher volume led to a $1.7 million increase in gross profit year over year or 8%, resulting in gross margin of 32.6%, up 50 basis points. Sequentially, electronics gross profit were up $8.6 million, or 61%, and gross margin expanded 900 basis points.

隨後，在健康和保健領域兩位數增長以及工業市場狀況適度改善的推動下，電子行業增長了 990 萬美元，即 17%。銷量增加導致毛利年增 170 萬美元，或 8%，毛利率達 32.6%，上升 50 個基點。隨後，電子產品毛利增加了 860 萬美元，即 61%，毛利率擴大了 900 個基點。

The sequential revenue and gross profit growth drove solid operating leverage in the segment. Compared with the fourth quarter of 2023, operating income grew $6.1 million or 610% and margin expanded 850 basis points. This is where the incrementals start to really show through in our business model as the volume returns.

收入和毛利的連續成長推動了該部門穩健的營運槓桿。與 2023 年第四季相比，營業收入成長 610 萬美元，即 610%，利潤率擴大 850 個基點。隨著銷量的回升，增量開始在我們的商業模式中真正顯現出來。

SEA expenses were up 16% compared with last year and up 19% compared with the trailing fourth quarter. We did not close the Schultes acquisition until the end of January last year and the i3PD acquisition until the end of May, so the year-ago period did not have either of those fully loaded into the compare.

SEA 費用與去年相比成長 16%，與去年第四季相比成長 19%。我們直到去年 1 月底才完成對 Schultes 的收購，直到 5 月底才完成 i3PD 的收購，因此去年同期沒有將這兩個項目完全納入比較。

Please turn to slide 11 for a review of our cash flow. This quarter demonstrated our financial priority to shorten our cash conversion cycle. We generated cash from operations of $17.8 million, up from $12.3 million in the first quarter of last year. The first quarter is historically our weakest for cash generation, so this level coming out of the gate is encouraging, but also leaves room for further improvement.

請翻到幻燈片 11 回顧我們的現金流。本季度展示了我們的財務重點是縮短現金轉換週期。我們的營運現金為 1,780 萬美元，高於去年第一季的 1,230 萬美元。第一季是我們歷史上現金產生能力最弱的季度，因此這一水平的出現令人鼓舞，但也留下了進一步改善的空間。

We had free cash flow of $12.3 million in the quarter measurably improved over the prior-year first quarter of $3.2 million. This was also our first sequential quarterly inventory decline over the past seven quarters. We are executing on our inventory reduction plan and expect more optimized inventory management processes to be a meaningful contributor to our improved cash conversion cycle as we step through the balance of the year.

本季我們的自由現金流為 1,230 萬美元，比去年第一季的 320 萬美元有了顯著改善。這也是我們過去七個季度以來首次連續季度庫存下降。我們正在執行庫存削減計劃，並期望在今年餘下的時間裡，更優化的庫存管理流程將為我們改善現金轉換週期做出有意義的貢獻。

Capital expenditures for the quarter of $5.5 million or 2.6% of sales were primarily focused on maintenance CapEx, tooling, and the expansion at Faster in Italy.

本季的資本支出為 550 萬美元，佔銷售額的 2.6%，主要用於維護資本支出、工具以及義大利 Faster 的擴張。

Turning to slide 12. At the end of the first quarter, cash and cash equivalents were $37.3 million, and we had $197 million available on our revolving lines of credit providing us ample liquidity. Total debt was down modestly from the end of 2023 and has shown steady declines over the last three quarters.

轉到投影片 12。第一季末，現金和現金等價物為 3,730 萬美元，我們的循環信貸額度有 1.97 億美元，為我們提供了充足的流動性。總債務較 2023 年底小幅下降，並在過去三個季度穩步下降。

At quarter end, our net debt-to-adjusted EBITDA leverage ratio was 3.08 times. With our targeted ratio between 2 to 3 times, we think at the mid-point of our guidance we would be close to 2.5 times ending 2024. Ultimately, as we get closer to the lower end of our target range, we have the ability to flex up for acquisitions and other investments.

截至季末，我們的淨負債與調整後 EBITDA 槓桿率為 3.08 倍。由於我們的目標比率在 2 至 3 倍之間，我們認為在我們指導的中點，到 2024 年年底，我們的比率將接近 2.5 倍。最終，當我們接近目標範圍的下限時，我們有能力靈活地進行收購和其他投資。

Turning to slides 13 to 14, we are affirming our outlook for 2024. We are presenting the key metrics here and you can find the other modeling items in the supplemental slides with no changes to our 2024 fiscal years estimates from what was communicated with our February 2024 press release and earnings materials.

轉向幻燈片 13 至 14，我們確認了 2024 年的展望。我們在此介紹關鍵指標，您可以在補充幻燈片中找到其他建模項目，我們 2024 年 2 月新聞稿和收益資料中傳達的 2024 財年估計沒有變化。

As shown, sales are expected to be in the range of $840 million to $860 million, adjusted EBITDA in the range of 19.5% to 21%, and diluted non-GAPP earnings per share in the range of $2.35 to $2.75. Given our solid sequential results in the first quarter, paired with further sequential bottomline improvements anticipated for the balance of the fiscal year, we are confident in affirming our full-year guidance for 2024.

如圖所示，銷售額預計在 8.4 億至 8.6 億美元之間，調整後 EBITDA 在 19.5% 至 21% 之間，攤薄後的非 GAPP 每股收益在 2.35 至 2.75 美元之間。鑑於我們第一季穩健的連續業績，加上預計本財年剩餘時間的淨利潤將進一步連續改善，我們有信心確認 2024 年全年指引。

As we did for the first quarter, we would like to establish our second-quarter estimates for sales in the range of $213 million to $218 million and adjusted EBITDA margin of 19.0% to 20.5%. Current demand and order levels support further sequential sales improvements. This incremental expected sequential volume, coupled with operational improvements and disciplined cost management, support further profitability rate expansion.

正如我們對第一季所做的那樣，我們希望將第二季的銷售額預計在 2.13 億美元至 2.18 億美元之間，調整後的 EBITDA 利潤率為 19.0% 至 20.5%。目前的需求和訂單水準支持進一步的連續銷售改善。這種增量的預期連續銷量，加上營運改善和嚴格的成本管理，支持進一步擴大獲利率。

As we signaled earlier in the year, we continue to expect the first half of 2024 to be tougher on a year-over-year comparable basis. Slide 14 is a new slide intended to provide some understanding of where we see our market and operational drivers by segment.

正如我們今年稍早表示的那樣，我們繼續預計 2024 年上半年與去年同期相比將更加艱難。投影片 14 是一張新投影片，旨在讓我們了解我們按細分市場劃分的市場和營運驅動因素。

Looking to slide 15, I want to remind you of our financial priorities for 2024. As I have said before, this year is all about execution and driving consistent and predictable performance. We are strengthening the underlying financial discipline and structure of Helios. We expect the resulting cash generation and profitability will provide improving returns on our investments.

查看投影片 15，我想提醒您我們 2024 年的財務重點。正如我之前所說，今年的重點是執行力和推動一致且可預測的績效。我們正在加強 Helios 的基礎財務紀律和結構。我們預計由此產生的現金和獲利能力將為我們的投資帶來更高的回報。

So let me turn it back to Josef for some closing remarks.

讓我把它轉回給約瑟夫做一些結束語。

Thank you much, Sean. As we committed, 2024 is the year of executing and elevating as we leverage the strong foundation we built and start seeing the returns on our invested capital grow. The traction we are gaining on our financial priorities is already showing positive improvements in our results.

非常感謝你，肖恩。正如我們所承諾的那樣，2024 年是執行和提升的一年，我們將利用我們建立的堅實基礎，並開始看到投資資本回報率的成長。我們在財務優先事項上獲得的牽引力已經在我們的業績方面顯示出積極的改善。

We will maintain our strong focus on collaborating with our customers, suppliers, and employees ensuring we have an aligned strategy. When we started this journey several years ago, we completed perception and other surveys with our customers, investors and with our people as we augmented our strategy. We continue to value and incorporate the voice of the business in all that we do.

我們將繼續高度重視與客戶、供應商和員工的合作，確保我們制定一致的策略。幾年前，當我們開始這趟旅程時，我們在增強策略的同時，完成了對客戶、投資者和員工的看法和其他調查。我們繼續重視企業的聲音並將其融入我們所做的一切。

In fact, the feedback from our customers, that gave us the conviction to make the investments across innovation, acquisitions, and regional capacity which has now primed us for growth as the markets recover. With a good deal of integration work completed and having our regional structure and product cost improvements in place, we expect to get back to our normalized gross margin levels over time.

事實上，客戶的回饋讓我們有信心在創新、收購和區域能力方面進行投資，這為我們在市場復甦時實現成長做好了準備。隨著大量整合工作的完成以及我們的區域結構和產品成本的改進到位，我們預計隨著時間的推移將恢復到正常的毛利率水準。

As many of you know, the way our model is structured, as our volume grows the incrementals show up. We have been redefining Helios and securing our place as a global leader in the industrial landscape that can deliver top-tier margins and cash flow. Our strong foundation coupled with the methodical investments sets us up for continued growth and profitability for years to come.

正如你們許多人所知，我們的模型的建構方式是，隨著我們的數量增長，增量就會出現。我們一直在重新定義 Helios，並確保我們作為工業領域全球領導者的地位，能夠提供頂級的利潤和現金流。我們堅實的基礎加上有條不紊的投資，為我們在未來幾年的持續成長和獲利奠定了基礎。

With that, let's open the lines for Q&A, please.

現在，讓我們開始問答環節。

Thank you. We will now be conducting a question-and-answer session. (Operator instructions) Chris Moore, CJS Securities.

謝謝。我們現在將進行問答環節。（操作員指示）Chris Moore，CJS 證券。

Maybe we can start on the commercial food service space. Can you maybe just talk a little bit more about the nature of these applications and when you might expect to have them start impacting revenue?

也許我們可以從商業食品服務領域開始。您能否多談談這些應用程式的性質以及您預計它們何時開始影響收入？

In terms of commercial food service, everyone is aware, there has been a target market of ours now for a couple of years. And we certainly geared up with the product, the technology, and the differentiation we needed to not just compete and enter the market, but also, lock up the market in certain applications where we knew we had the chance to win. So this is a very large market for us. We are taking very methodical steps to get a strong entry. We have now total of three wins in hand, two separate customers on one product line. And that is not baked in into our 2024 guidance.

在商業餐飲服務方面，每個人都知道，我們的目標市場已經有幾年了。當然，我們已經做好了產品、技術和差異化準備，我們不僅需要競爭和進入市場，而且還需要在某些我們知道有機會獲勝的應用中鎖定市場。所以這對我們來說是一個非常大的市場。我們正在採取非常有條理的步驟來獲得強有力的進入。我們現在總共贏了三個勝利，一個產品線上有兩個獨立的客戶。這並未納入我們的 2024 年指導方針中。

We're still dealing with this headwinds of the economy. But we do believe when we get beyond this, that this would be a significant play for us over the years to come and a profitable play. And then looking to expand beyond just one or two product lines into other areas of the commercial food service space, not just from a commodity play, but more from a closed-loop systems play.

我們仍在應對經濟的逆風。但我們確實相信，當我們超越這一點時，這將是我們未來幾年的一項重要舉措，並且是一項有利可圖的舉措。然後尋求從一兩個產品線擴展到商業食品服務領域的其他領域，不僅僅是從商品領域，而是從閉環系統領域。

It sounds like the bigger system deals are still progressing. OEM’s perhaps not looking for you to discuss at this stage. Is there anything else you can share to give us a better feel for the scope? And maybe the second part of that is, is it reasonable from where you sit today to expect that at some point in 2024, you will be discussing specifics on a couple of these bigger deals?

聽起來更大的系統交易仍在進行中。OEM 在現階段可能不會找您討論。您還有什麼可以分享的，讓我們更了解這個範圍嗎？也許第二部分是，從您今天的立場來看，您預計在 2024 年的某個時候討論幾筆較大交易的具體細節是否合理？

Yes, certainly our expectation to continue to keep all of you folks updated. We have invested in this area. We have strong collaboration with our customers. All those mid and larger deals continue to be in play. Naturally, the geopolitical situation obviously has an impact on that, or we could have gone a little quicker and faster. Above and beyond that, we are still finishing our capacity expansion in Europe to support the true global launch.

是的，我們當然希望繼續向大家通報最新情況。我們已經在這個領域進行了投資。我們與客戶有著密切的合作。所有這些中型和大型交易仍在繼續進行。當然，地緣政治局勢顯然對此有影響，否則我們可以走得越來越快。除此之外，我們仍在完成歐洲的產能擴張，以支持真正的全球發布。

In terms of communication, everyone in this market is super sensitive about getting a leg up and some type of exclusivity. So we continue to discuss and negotiate with our customers at what point in time can we communicate accordingly. But to answer your question, the deals are still in play, and we have every attention to communicate once we get the green light.

在溝通方面，這個市場上的每個人都對獲得優勢和某種排他性非常敏感。所以我們繼續和客戶討論和協商什麼時候可以進行相應的溝通。但要回答你的問題，交易仍在進行中，一旦獲得批准，我們就會全力以赴進行溝通。

And Chris, this is Tania. I think it's worth adding to what Josef had mentioned in his prepared comments. There are some sub-system sale wins with smaller and medium-sized OEMs, which we've started to win. We've already talked about how a lot of our distributors are already selling our products in sub-system sales, and they're investing in additional capacity to sell more. We really think that all of this points to just the market validating that we've got the right products and moving in the right strategic direction. Everyone knows the largest of the OEMs, those timelines can be a long process, right? We feel very encouraged by all the additional data points that we're seeing from other parts of our channel.

克里斯，這是塔妮亞。我認為約瑟夫在他準備好的評論中提到的內容值得補充。我們已經開始贏得中小型原始設備製造商的一些子系統銷售。我們已經討論過我們的許多經銷商已經在子系統銷售中銷售我們的產品，並且他們正在投資額外的產能以銷售更多產品。我們確實認為所有這些都表明市場證明我們擁有正確的產品並朝著正確的策略方向前進。每個人都知道最大的原始設備製造商，這些時間表可能是一個漫長的過程，對吧？我們對從頻道其他部分看到的所有額外數據點感到非常鼓舞。

And maybe, Chris, just one more data point on an additional system sale in terms of the recent WaterGuru announcement we did in the health and wellness. You know, there's been obviously a pinch point in the health and wellness industry for a long time, having clean, balanced water application. And so when you look at that partnership we have established with WaterGuru here, it gives us, it leverages both companies' strength and gives us the ability to not only sense, but also over time, treat the water through an automated system coupling with an AI application that you can log on and see on your phone, the water clarity, the chemical levels, and as it gets low, it's automated, dispensing system kicks in, and then if there's any parts needed or any chemicals needed, it automatically sends the order to the supplier. So this is a pretty significant deal for us that over the years to come will certainly pay dividend.

克里斯，也許，就我們最近在健康和保健領域所做的 WaterGuru 公告而言，這只是關於額外系統銷售的另一個數據點。您知道，長期以來，清潔、平衡的用水一直是健康和保健產業的關鍵點。因此，當您看到我們與WaterGuru 建立的合作關係時，您會發現它為我們提供了利用兩家公司的優勢的能力，使我們不僅能夠感知，而且隨著時間的推移，能夠透過與自動化系統結合的自動化系統來處理水。如果需要任何零件或需要任何化學品，它會自動發送給供應商的訂單。因此，這對我們來說是一項非常重要的交易，在未來的幾年裡肯定會帶來紅利。

Jeff Hammond, KeyBank.

傑夫·哈蒙德，KeyBank。

So I'm really just trying to get a better sense of what you think is improving cyclically versus seasonally. You know, it seems like historically 1Q is better than 4Q. There seems to be some seasonality, certainly in health and wellness, but what are you seeing actually getting fundamentally better versus kind of a seasonal uplift? And I think you mentioned mobile is, you know, kind of moving off the bottom, and I'm wondering maybe what within mobile feels better because it seems like construction and rental end markets seem to be weakening along with ag?

所以我真的只是想更好地了解您認為週期性和季節性改善的情況。你知道，從歷史上看，第一季似乎比第四季好。似乎存在一些季節性，尤其是在健康和保健方面，但與季節性的提升相比，您看到什麼實際上從根本上得到了改善？我想你提到移動是，你知道，有點脫離底部，我想知道移動內部的什麼感覺更好，因為似乎建築和租賃終端市場似乎隨著農業一起走弱？

Yeah. So, Jeff, the improvements we are seeing in health and wellness, that improvement has now three quarters under the belt, and it's clearly going in the right direction. So, we do have some confidence level that the market is starting to rebound, not just in North America, but also in APAC, and at a slower pace in Europe. We see a very stable, good US ag market, at least in our product offerings. Europe, on the other hand, has contracted, as everyone knows, in the ag industry.

是的。所以，傑夫，我們在健康和保健方面看到的改善，這種改善現在已經有四分之三了，而且顯然正在朝著正確的方向發展。因此，我們確實有一定的信心，認為市場正在開始反彈，不僅在北美，而且在亞太地區，而歐洲的步伐則較慢。我們看到美國農業市場非常穩定、良好，至少在我們的產品方面是如此。另一方面，眾所周知，歐洲的農業業已經萎縮。

On the industrial side, we see alternative energy, mining. The general industry has been pretty stable for us. On the mobile side, stable, the only one that's contracted somewhat is the European one in the mobile industry, and then we have the China, obviously, that is still in the process of recovering and rebounding. There's certain markets that are coming back nicely, there's others that will take longer. So, that's kind of, hopefully, the summary that you were looking for.

在工業方面，我們看到替代能源、採礦業。對我們來說，整個產業一直相當穩定。在移動方面，穩定，唯一收縮的是移動行業的歐洲，然後是中國，顯然仍處於復甦和反彈的過程中。某些市場正在恢復良好，而有些市場則需要更長的時間。所以，希望這就是您正在尋找的摘要。

Yeah. Okay. And then, Josef, I know you spent time in commercial food service. It sounds like you got multiple wins there on single product lines. It does seem like that market, those players in that market want to go to common controls across product lines, and I'm wondering if your customers are of that view and what it takes to kind of broaden out the portfolio beyond a single product line to more of those common controls?

是的。好的。然後，約瑟夫，我知道你在商業食品服務領域度過了一段時間。聽起來您在單一產品線上獲得了多場勝利。看起來確實是這個市場，那個市場的參與者希望跨產品線進行共同控制，我想知道您的客戶是否持這種觀點，以及如何才能將產品組合擴展到單一產品線之外更多的通用控件？

Yeah, certainly, Jeff. That has been, obviously, a desire in that field for a long, long time. You know, the challenge was, there was really not one single belly button who can have the product offering. So it became very complicated in terms of supply chain, and that's what we have invested in now for going on two years. It is a path we have that not only to switch over to a common control platform, but also have different variations within that offering coupled with wire harness and also AI applications and algorithm application and our sickness monitoring system that can connect the entire commercial food service kitchen.

是的，當然，傑夫。顯然，這一直是該領域長期以來的願望。您知道，挑戰在於，實際上沒有一個肚臍可以擁有該產品。因此，就供應鏈而言，它變得非常複雜，這就是我們現在已經投資了兩年的內容。我們擁有這樣的路徑，不僅可以切換到通用控制平台，還可以在該產品中提供不同的變體，再加上線束、人工智慧應用和演算法應用程式以及我們的疾病監測系統，可以連接整個商業食品服務廚房。

And so the equipment can talk to one another and independent, if you have one brand or numerous competitive brands in the kitchen, you still will be able to use that application. So then turn ratio is coming up here shortly, and I'm sure you will be there, Jeff, so we can demonstrate some of those applications you're talking about.

因此，設備可以相互通信並且獨立，如果您的廚房中有一個品牌或多個競爭品牌，您仍然可以使用該應用程式。那麼匝數比很快就會出現，我相信你會在那裡，傑夫，所以我們可以示範你正在談論的一些應用程式。

Okay, great. And then just last one. You know, Sean, it sounds like, working capital you think is a pretty big opportunity around shortening cash conversion. Just wondering if you have any initial views on how much working capital you think you can take out of the system over a couple years?

好的，太好了。然後就是最後一張。你知道，肖恩，聽起來你認為營運資金是縮短現金轉換的一個相當大的機會。只是想知道您對未來幾年可以從系統中取出多少營運資金是否有任何初步看法？

Yeah, Jeff, thanks for the question. So, definitely a huge area of focus for us given where it's trended the last couple years, and as we got into this year, I think the first quarter, we showed a little bit of improvement. Historically, the company was able to operate in the 100-day, 110-day kind of cash conversion cycle. We didn't take out quite 10 days in the first quarter, but we did take a reduction from the end of the year. We're not going to get back to those levels this year, but over time, that's the target to get back to those historical levels. So, we'll enter here, the end of the first quarter, enter the second quarter around 135 days or so. So, continue to drive that down towards that 100 target longer term.

是的，傑夫，謝謝你的提問。因此，考慮到過去幾年的趨勢，這絕對是我們關注的一個巨大領域，當我們進入今年時，我認為第一季我們表現出了一點進步。從歷史上看，該公司能夠以 100 天、110 天的現金轉換週期運作。第一季我們沒有拿出足夠的10天時間，但我們確實比年底減少了。今年我們不會回到這些水平，但隨著時間的推移，這是回到歷史水平的目標。所以，我們將進入這裡，第一季末，大約135天左右進入第二季。因此，從長遠來看，繼續將其降低到 100 的目標。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

I wanted to follow up on Jeff's question about the mobile market and the improvement that you're seeing there. I think it's fairly clear from some of the machinery OEMs reports that mobile equipment production is going to be down in 2024. Is the improvement here more of a -- but de-stocking is running at a lower level rather than -- any actual thoughts that the market itself is going to improve, there is going to be more units produced? And is there still de-stocking going on in the channel, at the OEMs, and when do you expect that to come to an end?

我想跟進傑夫關於行動市場以及您所看到的改進的問題。我認為，從一些機械原始設備製造商的報告中可以清楚看出，行動裝置產量將在 2024 年下降。這裡的改善更多的是——但去庫存是在較低的水平上進行的，而不是——任何實際的想法，即市場本身將會改善，將會生產更多的單位？通路、原始設備製造商是否仍在減少庫存，您預計這種情況何時結束？

Hey, Nathan, it's Sean. So, I think on our first slide on our net sales, within our earnings slide, we kind of showed the quarter-over-quarter trend. And I think a little bit of a dynamic for us is we're coming off a pretty soft second half last year where we felt a lot of that impact. So, from a sequential perspective, it improved. And I think specific to where we're seeing strength is over in the Asia-Pacific market, particularly China and South Korea strengthening significantly.

嘿，內森，我是肖恩。因此，我認為在我們的第一張淨銷售額幻燈片中，在我們的收益幻燈片中，我們顯示了季度環比的趨勢。我認為對我們來說有一點動力是去年下半年我們經歷了相當疲軟的時期，我們感受到了很大的影響。所以，從順序的角度來看，它有所改善。我認為具體到我們看到亞太市場的強勢已經結束，特別是中國和韓國的實力顯著增強。

And so, we're feeling some of that coming back. Some of that was validated. Josef and I were just over there last month and clearly seen some green shoots as he highlighted and has prepared remarks there. So, I think that's a little bit of what we're feeling. We were probably on the earlier side of the cycle from supplying a manufacturer. And I think we're kind of getting through that already.

因此，我們感覺到其中一些正在回歸。其中一些已得到驗證。約瑟夫和我上個月剛去過那裡，當他強調並在那裡準備評論時，我們清楚地看到了一些萌芽。所以，我認為這就是我們的感覺。我們可能處於向製造商供貨的周期的早期。我認為我們已經克服了這個問題。

Okay, thanks for that. And then my follow-up question, I want to ask about the gross margin rebound in Electronics. And I look to get a little bit more color there. Obviously, huge improvement, 900 basis points from the fourth quarter to kind of what were the drivers behind that sustainability of gross margins at those levels and any expectation for further improvement?

好的，謝謝。然後我的後續問題，我想問一下電子產品毛利率反彈的情況。我希望在那裡獲得更多的色彩。顯然，巨大的改善，比第四季度提高了 900 個基點，毛利率在這些水平上的可持續​​性背後的驅動因素是什麼？

Yeah, so there's two key drivers there. And as you know, last year we made some pretty significant investments in manufacturing Centers of Excellence down in our Tijuana plant. And we had some of that headwind in our margin last year. Some of that cost was coming on as we finished that plant. But what went on in the first quarter relative to the fourth quarter is two big dynamics.

是的，所以有兩個關鍵驅動因素。如您所知，去年我們對蒂華納工廠的卓越製造中心進行了一些相當大的投資。去年我們的利潤率也遇到了一些阻力。當我們完成那個工廠時，其中一些成本就開始了。但與第四季相比，第一季發生了兩大動態。

First was on the Balboa side, the health and wellness strength. The orders were really strong and outpaced our expectations. So, we were even able to overdrive our internal plans on that. And I would attribute kind of the upside to our beat from our guide to that specifically. And those incrementals on that because it was so contracted in the second half of last year, and frankly, most of all of last year, those increments

首先是巴爾博亞的健康和保健實力。訂單非常強勁，超出了我們的預期。因此，我們甚至能夠超額完成我們的內部計劃。我認為我們的指南中的節拍有一定的好處。這些增量是因為去年下半年萎縮了，坦白說，去年大部分時間，這些增量

The other piece was at our innovation controls business. Although the revenue and top line wasn't as strong and the growth wasn't there, all those actions we took in the fourth quarter last year from a cost perspective and then some of the integration efforts that we had by moving some production from Tulsa to Tijuana and that lower cost certainly helps as well. So those were the main drivers to the sequential improvement.

另一部分是我們的創新控制業務。儘管收入和營收沒有那麼強勁，增長也沒有出現，但我們去年第四季度從成本角度採取的所有這些行動，以及我們通過將部分生產從塔爾薩轉移來進行的一些整合工作蒂華納，較低的成本當然也有幫助。因此，這些是連續改進的主要驅動力。

(Operator instructions) Mig Dobre, Baird.

（操作員指示）Mig Dobre，Baird。

Thank you for the question. I want to follow up on Hydraulics as well. Trying to get a sense of how you think about revenue sequentially here and sort of what's embedded in the guide in second quarter versus second half. And when you kind of look at Americas versus EMEA, EMEA is over indexed to agriculture where obviously we know that production is coming down quite a bit for OEMs, but what are your assumptions around Americas that sort of support your revenue outlook? Thank you.

感謝你的提問。我也想跟進液壓系統。試著了解您如何看待這裡的收入順序，以及第二季與下半年指南中嵌入的內容。當您比較美洲與歐洲、中東和非洲地區時，您會發現歐洲、中東和非洲地區與農業的指數過高，顯然我們知道原始設備製造商的產量大幅下降，但您對美洲的假設有哪些支持您的收入前景？謝謝。

Hey, Mig. It's Sean. Thanks for the question. So yeah, you're spot on in terms of geographic mix with respect to EMEA and our faster business highly indexed to agriculture and that's where certainly some of the pressure is felt from a top line perspective and the growth would be more so coming from our some Hydraulics business, which is more indexed to the Americas, but also Asia and some of that strength, I mentioned, in Asia earlier is contributing to some of that.

嘿，米格。是肖恩。謝謝你的提問。所以，是的，就歐洲、中東和非洲地區的地理組合而言，您是正確的，而且我們更快的業務與農業高度相關，從頂線的角度來看，這肯定會感受到一些壓力，而成長將更多來自我們的業務。

From a kind of quarterly look, we expect Hydraulics to look pretty similar every quarter in terms of the top line. And again, the faster business will be pressured. We expect just given the current order demand that we're seeing and the kind of run rates, but overall more of that growth will come from some business.

從季度來看，我們預計液壓每季的營收都非常相似。再次，速度較快的業務將受到壓力。考慮到我們目前看到的訂單需求和運行率，我們預計，但總體而言，更多的成長將來自某些業務。

I see. And the net effect then for margins through the year here, is there a sort of kind of like cost management component that you're applying to this specific segment or should we sort of think that margins are going to be similar to Q1 given what that revenues are going to be similar to?

我懂了。那麼對全年利潤率的淨影響是，是否有一種類似於成本管理的組件應用於該特定細分市場，或者我們是否應該認為利潤率將與第一季相似？

No, we're going to expect to see increasing margins despite revenue levels being similar. The key drivers there is a lot of the pricing actions that went into play in hydraulics was at the end of last year. And so we really didn't get much of that uptick in the first quarter because those orders were already in play. In addition, there's been some Center of Excellence movements, as you know, in the Americas that we went into play last year that is really starting to hum now. We still are working through a bit of a past-due backlog with our Daman and Manifold, Center of Excellence.

不，儘管收入水平相似，但我們預計利潤率會增加。液壓領域的許多定價行動的關鍵驅動因素是在去年年底。因此，我們在第一季確實沒有得到太大的成長，因為這些訂單已經在發揮作用。此外，如您所知，我們去年在美洲開展了一些卓越中心運動，現在確實開始活躍起來。我們仍在與達曼和歧管卓越中心解決一些逾期積壓的問題。

But similarly in Europe, we're going through a bit of a consolidation as well that is, as you know, we've grown inquisitively in Europe, whether that's with Faster or NEM, and so really looking to leverage those facilities in addition to our Sun, our existing footprint there. So those will help support the growing margins as we go, and certainly we're being very disciplined on cost, particularly the areas where our top line is under pressure.

但與歐洲類似，我們也正在經歷一些整合，也就是說，如您所知，我們在歐洲不斷成長，無論是 Faster 還是 NEM，因此除了我們的太陽，我們在那裡現有的足跡。因此，這些將有助於支持我們不斷增長的利潤，當然，我們在成本方面非常嚴格，特別是在我們的營收面臨壓力的領域。

Okay, one final one if you'll allow it. Going back to the commercial food discussion here, I guess I'm trying to get a better sense for exactly what it is that you're selling into this vertical. Are you selling full controls for things like high-speed ovens or something like that? And when I'm thinking of the classic innovation control type offerings, they don't seem to sort of fit that vertical. So I'm assuming this is probably something that comes out of your Balboa Group that's been adapted.

好吧，如果你允許的話，最後一張。回到這裡的商業食品討論，我想我正在努力更好地了解您在這個垂直領域銷售的到底是什麼。您是否銷售高速烤箱或類似產品的完整控制裝置？當我想到經典的創新控制類型產品時，它們似乎不太適合這個垂直領域。所以我假設這可能是你們的巴爾博亞集團經過改編的結果。

So maybe you can clarify that, and I'm also curious as to what the opportunity is here. So if I look at, say, marine in your Electronics business, I think that's what, $15 million to $20 million worth of business. Can commercial food be of similar size as marine at a point in time? I mean, how do you frame this opportunity for investors? Thank you.

也許你可以澄清一下，我也很好奇這裡有什麼機會。因此，如果我看看你們的電子業務中的船舶業務，我認為這就是價值 1500 萬至 2000 萬美元的業務。商業食品在某個時間點的大小可以與海洋產品相似嗎？我的意思是，您如何為投資者建立這個機會？謝謝。

Yeah, Mig, good morning. In terms of framing the opportunity, you mentioned $20 million, and could it be larger or bigger? We look at that market much larger than that over the years to come.

是的，米格，早安。在建立機會方面，您提到了 2000 萬美元，是否可以更大或更大？我們認為這個市場比未來幾年大得多。

As you know, it's a significant market space. In terms of products that we are selling, it's actually, as you remember, we had a Good, Better, Best strategy in place, and we're certainly leveraging those products.

如您所知，這是一個巨大的市場空間。就我們銷售的產品而言，正如您所記得的，我們實際上製定了「好、更好、最好」的策略，而我們當然正在利用這些產品。

We have developed and invested in new products internally to enter the market space, leveraging Balboa's and innovation capabilities, if it's either through different screen sizes or motherboards or algorithms or software and hardware. So our focus was not so much selling commodities versus selling a system, so that will include a system, and in many cases sub-system and replacements. We are starting pretty much at a level of hot and cold side, and then over time expand into the beverage area, which is kind of where we are.

我們在內部開發和投資新產品，以進入市場空間，利用 Balboa 的創新能力，無論是透過不同的螢幕尺寸、主機板、演算法或軟體和硬體。因此，我們的重點不是銷售商品，而是銷售系統，因此這將包括一個系統，在許多情況下還包括子系統和替代品。我們幾乎從熱端和冷端開始，然後隨著時間的推移擴展到飲料領域，這就是我們所處的位置。

Thank you. We have reached the end of the question-and-answer session. Ms. Almond, I would now like to turn the floor back over to you for closing comments.

謝謝。我們的問答環節已經結束。阿爾蒙德女士，我現在想把發言權交還給您，請您發表結束語。

Thank you, everyone, for joining us today and for your interest in and support of Helios Technologies. We will be attending a number of Investor Conferences over the next couple of months, so we look forward to seeing all of you on the road. Please feel free to reach out to me with any follow-up questions. Have a great day.

感謝大家今天加入我們，感謝大家對 Helios Technologies 的興趣與支持。我們將在接下來的幾個月內參加許多投資者會議，因此我們期待在路上見到你們所有人。如有任何後續問題，請隨時與我聯絡。祝你有美好的一天。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。