Kadant Inc (KAI) 2023 Q1 法說會逐字稿

Thank you, Gerald. Good morning, everyone, and welcome to Kadant's First Quarter 2023 -- can you give the instructions?

謝謝你，杰拉德。大家早上好，歡迎來到凱登 2023 年第一季度——您能給出說明嗎？

(Operator Instructions) Be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Michael McKenney, Executive Vice President and Chief Financial Officer. Please go ahead.

（操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的演講者，執行副總裁兼首席財務官 Michael McKenney。請繼續。

Thank you, Gerald. Good morning, everyone, and welcome to Kadant's First Quarter 2023 Earnings Call. With me on the call today is Jeff Powell, our President and Chief Executive Officer. Before we begin, let me read our safe harbor statement.

謝謝你，杰拉德。各位早上好，歡迎來到凱登 2023 年第一季度財報電話會議。今天與我通話的是我們的總裁兼首席執行官傑夫鮑威爾。在我們開始之前，讓我閱讀我們的安全港聲明。

Various remarks that we may make today about Kadant's future plans and expectations, financial and operating results and prospects are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements as a result of various important factors, including those outlined at the beginning of our slide presentation and those discussed under the heading Risk Factors in our annual report on Form 10-K for the fiscal year ended December 31, 2022, and subsequent filings with the Securities and Exchange Commission.

我們今天可能就 Kadant 的未來計劃和預期、財務和運營結果以及前景發表的各種評論是根據 1995 年《私人證券訴訟改革法案》的安全港條款的前瞻性陳述。這些前瞻性陳述受已知和未知的風險和不確定性可能導致我們的實際結果與這些前瞻性陳述因各種重要因素而產生重大差異，這些因素包括我們幻燈片演示開始時概述的那些以及我們年度報告中風險因素標題下討論的那些報告截至 2022 年 12 月 31 日的財政年度的 10-K 表格，以及隨後向美國證券交易委員會提交的文件。

In addition, any forward-looking statements we make during this webcast represent our views and estimates only as of today. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even if our views or estimates change.

此外，我們在本次網絡廣播中所做的任何前瞻性陳述僅代表我們截至今天的觀點和估計。雖然我們可能會選擇在未來某個時候更新前瞻性陳述，但我們明確表示不承擔任何義務，即使我們的觀點或估計發生變化也是如此。

During this webcast, we will refer to some non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is contained in our first quarter earnings press release and the slides presented on the webcast and discussed in the conference call, which are available in the Investors section of our website at www.kadant.com.

在此網絡廣播中，我們將提及一些非 GAAP 財務指標。這些非 GAAP 措施不是根據公認的會計原則編制的。非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬包含在我們的第一季度收益新聞稿和網絡廣播中展示並在電話會議中討論的幻燈片中，這些幻燈片可在我們網站的投資者部分獲取www.kadant.com.

Finally, I wanted to note that when we refer to GAAP earnings per share or EPS and adjusted EPS on this call, we are referring to each of these measures as calculated on a diluted basis.

最後，我想指出，當我們在本次電話會議上提及 GAAP 每股收益或每股收益和調整後的每股收益時，我們指的是在稀釋基礎上計算的每一項指標。

With that, I'll turn the call over to Jeff Powell, who will give you an update on Kadant's business and future prospects. Following Jeff's remarks, I'll give an overview of our financial results for the quarter, and we will then have a Q&A session. Jeff?

有了這個，我會把電話轉給 Jeff Powell，他會向您介紹 Kadant 的業務和未來前景的最新情況。在 Jeff 的發言之後，我將概述我們本季度的財務業績，然後我們將舉行問答環節。傑夫？

Thanks, Mike. Hello, everyone. Thank you for joining us this morning to review our first quarter results and discuss our business outlook for 2023. Q1 was an excellent start to 2023 with strong demand for aftermarket parts, which contributed to record bookings and a record adjusted EPS in the first quarter. Business activity was strong in most regions of the world, and new order activity was led by our Material Handling operating segment, along with solid growth in our Flow Control segment. As a result of new order activity, we ended the first quarter with record backlog. I'll provide more details on that when I review our operating segments.

謝謝，邁克。大家好。感謝您今天早上加入我們，回顧我們第一季度的業績並討論我們 2023 年的業務展望。第一季度是 2023 年的一個良好開端，對售後零件的需求強勁，這有助於第一季度創紀錄的預訂量和創紀錄的調整後每股收益。世界大部分地區的業務活動都很強勁，新訂單活動由我們的物料搬運運營部門引領，同時我們的流量控制部門也實現了穩健增長。由於新訂單活動，我們以創紀錄的積壓結束了第一季度。當我審查我們的運營部門時，我會提供更多詳細信息。

Overall, our healthy balance sheet and strong cash flow positions us well to capitalize on growth opportunities in 2023. Despite the dampening effect of foreign currency translation, we had solid increases across most financial metrics compared to Q1 of last year.

總體而言，我們健康的資產負債表和強勁的現金流使我們能夠很好地利用 2023 年的增長機會。儘管外幣換算產生抑製作用，但與去年第一季度相比，我們的大多數財務指標都有穩健增長。

As you can see on Slide 6, a notable highlight for the quarter was our record bookings performance. Bookings were $275 million, up 3% compared to our previous record in the same period last year. Excluding the negative impact of FX, organic bookings were up 7%.

正如您在幻燈片 6 中看到的那樣，本季度的一個顯著亮點是我們創紀錄的預訂業績。預訂量為 2.75 億美元，與我們去年同期的歷史記錄相比增長了 3%。排除外彙的負面影響，有機預訂量增長了 7%。

Q1 revenue increased 1% to $230 million compared to the same period last year. Excluding FX, organic revenue was up 5%. Our aftermarket parts revenue made up 2/3 of Q1 revenue and was up 4% to a record $152 million.

與去年同期相比，第一季度收入增長 1% 至 2.3 億美元。不包括外匯，有機收入增長了 5%。我們的售後零件收入佔第一季度收入的 2/3，增長 4%，達到創紀錄的 1.52 億美元。

Improved operating performance led to record adjusted EPS of $2.40 and adjusted EBITDA of $49 million, representing 21.1% of revenue. All our operating segments delivered excellent adjusted EBITDA margin performance despite inflationary pressures. Cash flow in Q1, which is historically a weaker quarter, increased 55% compared to the same period last year to $37 million, while free cash flow was $32 million.

經營業績的改善導致調整後的每股收益達到創紀錄的 2.40 美元，調整後的 EBITDA 達到 4900 萬美元，佔收入的 21.1%。儘管存在通脹壓力，但我們所有的運營部門都實現了出色的調整後 EBITDA 利潤率表現。第一季度的現金流量歷來較弱，與去年同期相比增長了 55%，達到 3700 萬美元，而自由現金流量為 3200 萬美元。

Next, I'd like to review our performance details on each operating segments. I'll begin with our Flow Control segment. Flow Control segment experienced a strong pickup in demand and set a new bookings record at $105 million. Both capital business and aftermarket parts demand boosted performance in the first quarter. Organic bookings, which exclude the effects from foreign currency translation, were up 8% compared to the same period last year. Q1 revenue performance was outstanding despite the headwinds from FX. Aftermarket parts revenue was a record and made up 73% of total Q1 revenue. Improved operating leverage led to an 11% increase in adjusted EBITDA compared to Q1 of 2022 and an adjusted EBITDA margin of 29.6%.

接下來，我想回顧一下我們在每個運營部門的業績細節。我將從我們的流量控制部分開始。流量控制部門經歷了強勁的需求回升，並創下了 1.05 億美元的新預訂記錄。資本業務和售後市場零件需求都推動了第一季度的業績。剔除外幣換算影響的有機預訂量與去年同期相比增長了 8%。儘管受到外彙的不利影響，但第一季度的收入表現依然出色。售後零件收入創歷史新高，佔第一季度總收入的 73%。與 2022 年第一季度相比，經營槓桿的改善導致調整後 EBITDA 增長 11%，調整後 EBITDA 利潤率為 29.6%。

As many of you know, the first quarter of the year is historically our strongest quarter in terms of bookings as our customers prepare for annual spring maintenance shutdowns. As a result, we expect subsequent quarterly bookings to moderate as the year progresses. That said, we do expect to deliver strong performance again this year in our Flow Control segment as our end markets remain healthy.

正如你們中的許多人所知，今年第一季度是歷史上我們預訂量最強勁的季度，因為我們的客戶正在為年度春季維護停機做準備。因此，我們預計隨後的季度預訂量會隨著時間的推移而減少。也就是說，由於我們的終端市場保持健康，我們預計今年我們的流量控制部門將再次取得強勁業績。

Turning now to our Industrial Processing segment. We experienced softer yet still good demand for both capital and parts in the first quarter. Q1 bookings were down 9% compared to the strong prior year period, reflecting the more recent moderation of activity in the wood processing sector. Demand for parts and capital for our recycling systems was robust across all regions of the world. Revenue in this segment decreased 10% to $84 million in the first quarter compared to the same period last year. Excluding the negative impact of FX, organic revenue decreased 6%. Overall, we had a good start to the year with relatively strong activity in our wood processing product line. We expect business activity in the wood sector to moderate as the year progresses.

現在轉向我們的工業加工部門。我們在第一季度經歷了對資本和零件的疲軟但仍然良好的需求。與強勁的去年同期相比，第一季度的預訂量下降了 9%，反映出木材加工行業最近的活動放緩。世界所有地區對我們回收系統的零件和資金的需求都很強勁。與去年同期相比，第一季度該部門的收入下降 10% 至 8400 萬美元。排除外彙的負面影響，有機收入下降了 6%。總體而言，我們的木材加工產品線活動相對強勁，今年開局良好。隨著時間的推移，我們預計木材行業的商業活動將會放緩。

In our Material Handling segment, we achieved our best performance since creating this segment with strong demand for our bulk material handling equipment leading to record bookings of $74 million in the first quarter. Demand in both Europe and North America for our high-performance baling systems was also notable in the first quarter. Revenue increased 19% to a record $57 million with significant contribution from capital shipments. Q1 organic revenue was up 21% compared to the same period last year. Improved operating performance drove adjusted EBITDA up 29% and boosted adjusted EBITDA margin to 22% of revenue.

在我們的物料搬運部門，我們實現了自創建該部門以來的最佳業績，對我們的散裝物料搬運設備的強勁需求導致第一季度的預訂量達到創紀錄的 7400 萬美元。第一季度，歐洲和北美對我們的高性能打包系統的需求也很可觀。收入增長 19%，達到創紀錄的 5700 萬美元，其中資本出貨量貢獻巨大。第一季度有機收入與去年同期相比增長了 21%。經營業績的改善推動調整後的 EBITDA 增長 29%，並將調整後的 EBITDA 利潤率提升至收入的 22%。

During the quarter, we booked a large capital order for North America's longest conveying line with a value of approximately $12 million. The 42-mile long conveyor incorporates our idler smart rolls and is designed to eliminate the need for truck transport, thereby eliminating the emissions associated with transport of the bulk material.

本季度，我們為北美最長的輸送線預訂了價值約 1200 萬美元的大額資本訂單。 42 英里長的輸送機採用我們的惰輪智能輥，旨在消除卡車運輸的需要，從而消除與散裝材料運輸相關的排放。

As we look to the second quarter of 2023 and the full year, our record backlog and ability to generate robust cash flows has us well positioned to capitalize on opportunities that may emerge as the year unfolds. We expect to deliver excellent financial performance again this year and are raising our full year 2023 revenue and EPS guidance. Mike will discuss this in more detail.

展望 2023 年第二季度和全年，我們創紀錄的積壓訂單和產生強勁現金流的能力使我們能夠很好地利用隨著時間的推移可能出現的機會。我們預計今年將再次實現出色的財務業績，並提高了 2023 年全年的收入和每股收益預期。 Mike 將更詳細地討論這個問題。

And with that, I'll turn the call over to Mike.

有了這個，我會把電話轉給邁克。

Thank you, Jeff. I'll start with some key financial metrics from our first quarter. Gross margins were 44.4% in the first quarter '23, up 100 basis points compared to 43.4% in the first quarter '22. This increase was principally due to higher margins achieved on the mix of capital projects, especially in our Industrial Processing segment. Also contributing to the improved gross margin was a higher overall percentage of parts and consumables revenue, which represented 66% of revenue in the first quarter '23 compared to 65% in the prior year.

謝謝你，傑夫。我將從第一季度的一些關鍵財務指標開始。 23 年第一季度的毛利率為 44.4%，與 22 年第一季度的 43.4% 相比上升了 100 個基點。這一增長主要是由於資本項目組合實現了更高的利潤率，尤其是在我們的工業加工領域。提高毛利率的另一個原因是零部件和消耗品收入的總體百分比較高，佔 23 年第一季度收入的 66%，而去年同期為 65%。

SG&A expenses were $58.6 million in the first quarter '23, a decrease of $0.6 million compared to $59.2 million in the first quarter '22. We had a favorable foreign currency translation effect of $1.8 million, which lowered SG&A expenses in the first quarter '23. In the first quarter of '22, we had $0.8 million in acquisition-related costs and a $0.6 million indemnification asset reversal. Excluding these items, SG&A expenses were up $2.6 million or 4% compared to the first quarter '22, primarily due to increased compensation expense as well as travel-related costs. As a percentage of revenue, SG&A expense decreased to 25.5% in the first quarter '23 compared to 26.1% in the prior year period.

23 年第一季度的 SG&A 費用為 5860 萬美元，與 22 年第一季度的 5920 萬美元相比減少了 60 萬美元。我們有 180 萬美元的有利外幣換算效果，這降低了 23 年第一季度的 SG&A 費用。在 22 年第一季度，我們有 80 萬美元的收購相關成本和 60 萬美元的賠償資產沖銷。不包括這些項目，與 22 年第一季度相比，SG&A 費用增加了 260 萬美元或 4%，這主要是由於補償費用以及差旅相關費用的增加。作為收入的百分比，SG&A 費用在 23 年第一季度下降至 25.5%，而去年同期為 26.1%。

Our effective tax rate in the first quarter was 25.7%, which included tax benefits related to the vesting of equity awards, which lowered the effective tax rate by 90 basis points. Our GAAP EPS decreased 32% to $2.40 in the first quarter compared to $3.53 in the first quarter '22, which included $1.30 gain on the sale of one of our Chinese facilities related to a relocation plan. Our adjusted EPS was up 5% to a record $2.40, which exceeded the high end of our guidance range by $0.20, predominantly due to higher-than-anticipated revenue, especially in our Material Handling segment.

我們第一季度的實際稅率為 25.7%，其中包括與授予股權獎勵相關的稅收優惠，使實際稅率降低了 90 個基點。我們的 GAAP 每股收益在第一季度下降了 32% 至 2.40 美元，而 22 年第一季度為 3.53 美元，其中包括出售我們與搬遷計劃相關的一個中國設施的 1.30 美元收益。我們調整後的每股收益增長了 5%，達到創紀錄的 2.40 美元，超出我們指導範圍的上限 0.20 美元，這主要是由於收入高於預期，尤其是在我們的物料搬運部門。

Adjusted EBITDA increased 6% to $48.6 million compared to $45.8 million in the first quarter '22, driven by strong performance in our Flow Control and Material Handling segments, which both had record adjusted EBITDA. As a percentage of revenue, adjusted EBITDA increased to 21.1% compared to 20.2% in the first quarter of '22.

調整後的 EBITDA 增長 6% 至 4860 萬美元，而 22 年第一季度為 4580 萬美元，這得益於我們的流量控制和材料處理部門的強勁表現，這兩個部門的調整後 EBITDA 均創下歷史新高。調整後的 EBITDA 佔收入的百分比從 2022 年第一季度的 20.2% 增至 21.1%。

Both operating and free cash flow increased 55% in the first quarter of '23 to $36.9 million and $32.4 million, respectively. Our operating cash flow of $36.9 million in the first quarter of '23 represents the highest quarterly cash flow since the fourth quarter of '21. Historically, the first quarter has been a weak quarter for operating cash flows. This represents a strong start for '23 with both operating and free cash flow being our highest first quarter performance.

23 年第一季度，運營現金流和自由現金流均增長了 55%，分別達到 3690 萬美元和 3240 萬美元。我們 23 年第一季度的運營現金流為 3690 萬美元，是 21 年第四季度以來最高的季度現金流。從歷史上看，第一季度是經營現金流量疲軟的一個季度。這代表了 23 年的良好開端，運營現金流和自由現金流都是我們第一季度的最高業績。

We had several notable nonoperating uses of cash in the first quarter of '23. We paid down debt by $20.8 million, paid $4.5 million for capital expenditures, paid a $3 million dividend on our common stock and paid $3.9 million in tax withholding payments related to the vesting of stock awards. Capital expenditures of $4.5 million in the first quarter of '23 included $0.2 million related to our facility project in China. We estimate this project will incur construction costs of $8 million to $9 million for the remainder of '23 with a projected move to the new facility in the second half of the year.

23 年第一季度，我們有幾筆值得注意的非經營性現金使用。我們償還了 2080 萬美元的債務，支付了 450 萬美元的資本支出，支付了 300 萬美元的普通股股息，並支付了 390 萬美元與授予股票獎勵相關的預扣稅款。 23 年第一季度 450 萬美元的資本支出包括與我們在中國的設施項目相關的 20 萬美元。我們估計該項目將在 23 年剩餘時間內產生 800 萬至 900 萬美元的建設成本，並預計在今年下半年搬遷到新設施。

Let me turn next to our EPS results for the quarter. In the first quarter '23, both GAAP and adjusted EPS were $2.40. In the first quarter '22, GAAP EPS was $3.53 and adjusted EPS was $2.28. Our EPS in the first quarter '22 included $1.30 gain on the sale of one of our Chinese facilities related to a relocation plan, $0.04 in acquisition-related costs and a $0.01 impairment charge.

接下來讓我談談我們本季度的每股收益結果。 23 年第一季度，GAAP 和調整後每股收益均為 2.40 美元。 22 年第一季度，GAAP 每股收益為 3.53 美元，調整後每股收益為 2.28 美元。我們在 22 年第一季度的每股收益包括出售與搬遷計劃相關的一個中國設施的收益 1.30 美元、收購相關成本 0.04 美元和減值費用 0.01 美元。

As shown in the chart, the increase of $0.12 in adjusted EPS in the first quarter '23 compared to the first quarter '22 consists of the following: $0.17 due to higher gross margin percentage and $0.09 due to higher revenue. These increases were partially offset by $0.06 due to higher interest expense, $0.05 due to a higher tax rate and $0.03 due to higher operating expenses. Collectively, included in all the categories I just mentioned was an unfavorable foreign currency translation effect of $0.09 in the first quarter '23 compared to the first quarter of last year due to the strengthening of the U.S. dollar.

如圖所示，與 22 年第一季度相比，23 年第一季度調整後的每股收益增加 0.12 美元，其中包括：毛利率較高導致 0.17 美元，收入增加 0.09 美元。這些增長被利息支出增加的 0.06 美元、稅率增加的 0.05 美元和運營支出增加的 0.03 美元部分抵消。總的來說，在我剛才提到的所有類別中，由於美元走強，與去年第一季度相比，23 年第一季度不利的外幣換算影響為 0.09 美元。

Looking at our liquidity metrics on Slide 15. Our cash conversion days, which we calculate by taking days in receivables plus days in inventory and subtracting days in accounts payable, increased to 136 at the end of the first quarter '23 compared to 104 at the end of the first quarter '22. Our average cash conversion days over the last 8 quarters has been 118 days. Our cash conversion days at the end of the first quarter of '23 is above average compared to the prior year period, which was below average. The 32-day increase in cash conversion days was driven by a higher number of days in inventory, especially in our Industrial Processing segment, where businesses are working to fulfill orders from their record backlog.

查看我們在幻燈片 15 上的流動性指標。我們的現金轉換天數（我們通過計算應收賬款天數加上庫存天數並減去應付賬款天數計算得出）在 23 年第一季度末增加到 136 天，而 2020 年第一季度末為 104 天22 年第一季度末。我們過去 8 個季度的平均現金轉換天數為 118 天。與去年同期相比，我們在 23 年第一季度末的現金轉換天數高於平均水平，而去年同期低於平均水平。現金轉換天數增加 32 天是由於庫存天數增加，特別是在我們的工業加工部門，該部門的企業正在努力完成創紀錄的積壓訂單。

Working capital as a percentage of revenue was 15.6% in the first quarter of '23 compared to 10.8% in the first quarter '22. The increase in this metric was driven by a $36 million increase in inventory to fulfill orders in our backlog and the reclassification of a $15 million note receivable related to our China relocation project from long term to short term.

23 年第一季度營運資金佔收入的百分比為 15.6%，而 22 年第一季度為 10.8%。該指標的增長是由於庫存增加了 3600 萬美元以完成我們積壓的訂單，以及將與我們的中國搬遷項目相關的 1500 萬美元應收票據從長期重新分類為短期。

Our net debt, that is debt less cash, decreased $25 million or 21% sequentially to $96 million at the end of the first quarter '23. With our debt pay down in the first quarter, we were able to further lower our leverage ratio calculated in accordance with our credit agreement to 0.64 at the end of the first quarter '23 compared to 0.74 at the end of '22.

截至 2023 年第一季度末，我們的淨債務（即債務減去現金）減少了 2500 萬美元或 21%，至 9600 萬美元。隨著我們在第一季度償還債務，我們能夠將根據我們的信貸協議計算的槓桿率進一步降低到 23 年第一季度末的 0.64，而 22 年末為 0.74。

At the end of the first quarter '23, we had $233 million of borrowing capacity available under our revolving credit facility, which matures in November of '27. Our lower leverage ratio and increased borrowing capacity has us well positioned to act on future investment opportunities.

在 23 年第一季度末，我們的循環信貸安排下有 2.33 億美元的借貸能力，該安排將於 27 年 11 月到期。我們較低的槓桿率和增加的借貸能力使我們能夠很好地把握未來的投資機會。

Now I'll turn to our guidance for '23. As a result of our strong start to the year, we are increasing our full year revenue guidance to $910 million to $935 million from $900 million to $925 million. And we are increasing our adjusted EPS guidance for the full year to $8.90 to $9.15 from $8.80 to $9.05. The adjusted EPS guidance excludes $0.08 estimated relocation costs associated with one of our facilities in China.

現在我將轉向我們對 23 年的指導。由於今年開局強勁，我們將全年收入預期從 9 億至 9.25 億美元上調至 9.1 億至 9.35 億美元。我們將調整後的全年每股收益指引從 8.80 美元增加到 9.05 美元，增加到 8.90 美元到 9.15 美元。調整後的 EPS 指導不包括與我們在中國的一個設施相關的 0.08 美元的估計搬遷成本。

Our revenue guidance for the second quarter of '23 is $230 million to $235 million, and our adjusted EPS guidance is $2.05 to $2.15, which excludes $0.04 of estimated relocation costs. As always, I'll caution here that there could be some choppiness and variability in our quarterly results due to several factors, including the variability of order flow and the timing of capital shipments. In addition, other risks that could impact our guidance include Central Bank's policy responses to inflation, geopolitical tensions, strengthening of the U.S. dollar and lingering supply chain issues.

我們對 23 年第二季度的收入指引為 2.3 億美元至 2.35 億美元，調整後的每股收益指引為 2.05 美元至 2.15 美元，其中不包括 0.04 美元的估計搬遷成本。與往常一樣，我會在這裡提醒您，由於訂單流的可變性和資本發貨的時間安排等多種因素，我們的季度業績可能會出現一些波動和變化。此外，可能影響我們指引的其他風險包括中央銀行對通脹的政策反應、地緣政治緊張局勢、美元走強和揮之不去的供應鏈問題。

We continue to anticipate gross margins for '23 will be 42% to 43%. This implies gross margins in the remaining quarters will be in the 42% range, with the second quarter gross margins projected to come in at the low end of the 42% range as the mix is expected to be more heavily weighted towards capital in the first quarter of '23. As a percentage of revenue, we still anticipate SG&A will be approximately 24% to 25% and R&D expense will be approximately 1.5% of revenue in '23.

我們繼續預計 23 年的毛利率將為 42% 至 43%。這意味著剩餘季度的毛利率將在 42% 的範圍內，第二季度的毛利率預計將處於 42% 範圍的低端，因為預計第一季度的組合將更加偏重於資本23 年四分之一。作為收入的百分比，我們仍然預計 23 年 SG&A 將約為 24% 至 25%，研發費用將約為收入的 1.5%。

We expect our tax rate for the remaining quarters will be approximately 27%. We continue to expect depreciation and amortization to be approximately $34 million to $35 million. And we continue to anticipate CapEx spending in '23 will be approximately $32 million to $34 million, which includes $8 million to $9 million related to our facility project in China.

我們預計剩餘季度的稅率約為 27%。我們繼續預計折舊和攤銷約為 3400 萬至 3500 萬美元。我們繼續預計 23 年的資本支出將約為 3200 萬至 3400 萬美元，其中包括與我們在中國的設施項目相關的 800 萬至 900 萬美元。

That concludes my review of the financials, and I'll now turn the call back over to Gerald for our Q&A session. Gerald?

我對財務狀況的審查到此結束，現在我將把電話轉回給杰拉德進行我們的問答環節。杰拉德？

(Operator Instructions) Our first question comes from the line of Gary Prestopino from Barrington Research.

（操作員說明）我們的第一個問題來自 Barrington Research 的 Gary Prestopino。

Quick question here. On the Flow Control, you said 73% of revenue was aftermarket parts. Is that correct in this quarter?

在這裡快速提問。在 Flow Control 上，您說 73% 的收入來自售後市場。這在本季度是否正確？

Yes.

是的。

And how did that compare to last year? Do you have that handy?

與去年相比如何？你有那個方便嗎？

See here. I think I have that rate in front of me, Gary. I'll come back to you on that one. I'll find it.

看這裡。加里，我想我面前有那個比率。我會在那件事上再找你。我會找到的。

Okay. And I'd also -- and you said it was 65% for industrial. I just would like to see where that was last year at that time, too -- at this time, too.

好的。而且我也 - 你說它是工業的 65%。我也想看看去年那個時候——也是這個時候。

Last year, it was 72% for flow. And industrial, this year, we were 65%. Last year, it was 60%.

去年，流量佔 72%。而工業，今年我們是 65%。去年，這一比例為 60%。

Okay. And then in the Industrial Processing side, was the majority of that revenue decrease really due to what you do on the wood products side versus recycling paper and paperboard?

好的。然後在工業加工方面，大部分收入減少真的是因為你在木製品方面所做的與回收紙和紙板相比嗎？

Yes, it was. But I'd also note there, Gary, I mean, we did -- first, a couple of things. It's a tough comp for us. I think we're going to have that frequently, especially in wood for '23. But the other thing that happened, which is why I made that mention in my call notes about capital, the variability of when capital ships, is we had some projects that were scheduled to ship in the first quarter, and those who were moved to later quarters in the year. So had those shipped in the quarter, we really -- we would have been flat organically on revenue. But (inaudible).

是的。但我還要指出，加里，我的意思是，我們做了——首先，有幾件事。這對我們來說是一場艱難的比賽。我想我們會經常這樣做，尤其是在 23 年的木材中。但是發生的另一件事，這就是為什麼我在關於資本的通話記錄中提到資本出貨時間的可變性，是我們有一些計劃在第一季度出貨的項目，以及那些被轉移到以後的項目一年中的幾個季度。所以如果那些在本季度發貨，我們真的 - 我們的收入本來會持平。但是（聽不清）。

You still have them?

你還有嗎？

Yes, still have them. This is normal course of things, especially -- most especially, of course, on capital projects. They can get pulled in or moved out.

是的，還有它們。這是正常的事情，尤其是——當然，尤其是在資本項目上。他們可能會被拉進來或搬出去。

What often happens, Gary, is the site, there's a lot of civil construction work on the site that has to be completed before they can install our equipment. And the customers will often get behind their projects, and so they're not ready for the equipment to be installed. So that kind of dictates the delivery schedule.

加里，經常發生的事情是現場，現場有很多土建工程必須完成，然後才能安裝我們的設備。客戶通常會落後於他們的項目，因此他們還沒有準備好安裝設備。所以這決定了交貨時間表。

Okay. And then lastly, in the Material Handling segment, you had some pretty good growth there. You said you booked a large capital order for a 42-mile conveyor. That's a huge conveyor. But I mean, was there any revenue in the quarter from that? Or was it all -- was all the revenue -- was the majority -- well, was there any revenue in the quarter from that?

好的。最後，在物料搬運部分，你在那裡取得了相當不錯的增長。你說你為 42 英里的輸送機訂了一個大資本訂單。那是一個巨大的傳送帶。但我的意思是，該季度有任何收入嗎？或者是全部 - 是所有收入 - 是大部分 - 好吧，這個季度有任何收入嗎？

No, no, Gary. No revenue in the first quarter related to that.

不，不，加里。第一季度沒有與此相關的收入。

Our next question comes from the line of Adi Madan from D.A. Davidson.

我們的下一個問題來自 D.A. 的 Adi Madan。戴維森。

You have Adi here filling in for Kurt Yinger today. And so first off, congrats on a great quarter in this environment. And I actually have 3 questions for you today, and the first one being in terms of the outlook for moderation in activity in the second half of the year, are you seeing tangible signs in terms of commentary from your customers? Or is it -- or more recent booking activities to lead you that view? Or is it just more of a potentially conservative stance during the current environment?

今天有 Adi 代替 Kurt Yinger 發言。因此，首先，祝賀您在這種環境下取得了出色的成績。事實上，我今天有 3 個問題要問你，第一個是關於今年下半年活動放緩的前景，你是否看到客戶評論方面的明顯跡象？或者是——還是最近的預訂活動讓您產生了這種看法？或者它只是在當前環境下更像是一種潛在的保守立場？

Yes. Well, as you can see, the bookings in the first quarter were incredibly strong. There was even a big FX impact to that, so the bookings were even stronger than the $275 million in reality. So we experienced great activity, but we do -- I think we do have concerns in the back half of the year because, as you know, these -- the Central Banks and in particular the Federal Reserve Bank is working very hard to try to crush demand.

是的。好吧，正如您所看到的，第一季度的預訂非常強勁。這甚至對外匯產生了很大的影響，因此預訂量甚至比實際的 2.75 億美元還要高。所以我們經歷了很好的活動，但我們確實 - 我認為我們確實在今年下半年感到擔憂，因為正如你所知，這些 - 中央銀行，特別是聯邦儲備銀行正在非常努力地嘗試粉碎需求。

And so I think we're being particularly cautious in the back half of the year because we don't have good visibility, and there's just a lot of noise and a lot of uncertainty out there. And so we're -- we tend to be, as you know, a conservative organization anyway. And so we're just being cautious. But through the first quarter, of course, demand was exceptionally strong and really all of our businesses, all our segments across the world. So it's more just being cautious because of the unknown, I would say, at this point.

所以我認為我們在今年下半年特別謹慎，因為我們沒有很好的能見度，而且那裡只有很多噪音和很多不確定性。所以我們 - 正如您所知，我們往往是一個保守的組織。所以我們只是保持謹慎。但是，在整個第一季度，當然，需求異常強勁，實際上我們所有的業務，我們在世界各地的所有部門。因此，我想說，在這一點上，更多的是因為未知而保持謹慎。

Okay. Yes. That makes sense. And another question about gross margin. So gross margins were quite strong relative to the full year guide in Q1. Could you talk to how you expect that to trend over the balance of the year? And is some compression there primarily just related to your mix expectations around higher capital going forward?

好的。是的。這就說得通了。還有一個關於毛利率的問題。因此，相對於第一季度的全年指南，毛利率相當強勁。您能否談談您預計今年餘下時間的趨勢如何？那裡的一些壓縮是否主要與您對未來更高資本的混合預期有關？

Yes. Adi, you're exactly right. Our -- the first quarter for us, you will tend to see gross margins be pretty strong because it tends to be more -- our first quarter tends to be more heavily weighted towards parts and consumables. As you saw for first quarter of this year, it was 66%. And you're exactly right. As we go through the year, that mix is going to shift towards more capital. So this will be our strongest quarter for parts and consumables as a percent of revenue.

是的。阿迪，你完全正確。我們 - 第一季度對我們來說，你會看到毛利率非常強勁，因為它往往更多 - 我們的第一季度往往更傾向於零件和消耗品。正如你在今年第一季度看到的那樣，這一比例為 66%。你是對的。隨著我們度過這一年，這種組合將轉向更多的資本。因此，這將是我們零件和消耗品佔收入百分比最強勁的一個季度。

And then that percentage will start to decrease as we ship more capital, and that is what's creating the pressure on gross margins. And that's why I was careful to call that out in the call to say, "Hey, we started out with very strong gross margins." We anticipated that, and it fits the guidance that we gave of 42% to 43%. And as a result, on the go-forward quarters, you'll see margins kind of in that 42% range.

然後隨著我們運送更多資本，這個百分比將開始下降，這就是對毛利率造成壓力的原因。這就是為什麼我在電話中小心翼翼地指出這一點：“嘿，我們一開始的毛利率非常高。”我們預料到了這一點，它符合我們給出的 42% 到 43% 的指導。因此，在未來幾個季度，你會看到利潤率在 42% 的範圍內。

Okay. Yes. That makes sense. And just lastly on capital allocation. For the remainder of the year, how are you thinking about share repurchases versus dividends? And specifically, maybe if you could talk more about M&A, what kind of opportunity you're seeing out there. Are you more or less willing to be active on that front? Good luck for next quarter.

好的。是的。這就說得通了。最後是資本配置。在今年餘下的時間裡，您如何看待股票回購與股息的關係？具體來說，如果你能多談談併購，你會看到什麼樣的機會。你或多或少願意在這方面積極主動嗎？祝下個季度好運。

Thank you. Yes. So as you know, we pay a dividend. Our goal is to try to increase it every year. But it tends to be something that the Board looks at every -- kind of every quarter. As far as stock buybacks, while we have authorized buyback, we haven't purchased any shares for several years. We found that there have been good acquisition opportunities out there that we thought were better returns for us.

謝謝。是的。如您所知，我們支付股息。我們的目標是嘗試每年增加它。但這往往是董事會每季度都會關注的事情。至於股票回購，雖然我們已經授權回購，但我們已經好幾年沒有購買任何股票了。我們發現那裡有很好的收購機會，我們認為這對我們來說是更好的回報。

And I would say that from an acquisition activity standpoint, last year was quite slow. I think many of the bankers would say their business was off about 50% last year. We certainly saw that. But this year, I think there's a lot more activity. There's a lot more discussions going on. So it does seem like deal flow is picking up this year. It's still early in the year, of course, but at least through the first quarter, I would say the activity level, the discussions, the number of deals coming to the market is up quite a bit from last year.

我要說的是，從收購活動的角度來看，去年相當緩慢。我想很多銀行家會說他們的業務去年下降了大約 50%。我們當然看到了。但今年，我認為有更多的活動。還有更多的討論正在進行。因此，今年的交易流量似乎確實有所回升。當然，現在還處於年初，但至少在第一季度，我會說活動水平、討論、進入市場的交易數量比去年增加了很多。

So we -- as you know, we tend to be opportunistic. We don't buy companies every year, but if we find good strategic fits, we will move on them. And of course, we've got the balance sheet and the debt capacity to do that.

所以我們——如你所知，我們傾向於投機取巧。我們不會每年都收購公司，但如果我們找到合適的戰略，我們就會繼續收購它們。當然，我們有資產負債表和債務能力來做到這一點。

Gerald, I think that was the last of his questions. I don't know if there's another questioner.

杰拉爾德，我想這是他最後一個問題了。不知道還有沒有提問者。

Our next question comes from Walter Liptak from Seaport Research.

我們的下一個問題來自 Seaport Research 的 Walter Liptak。

I wanted to ask about -- a little bit more about the second quarter and maybe the mix of business in the second quarter. The number -- the guidance on the EPS line was a little bit below where the consensus had you. I just wonder if you could just clarify. I think you touched on it a little bit, but maybe what's the mix looking like for the second quarter?

我想多問一些關於第二季度的問題，也許還有第二季度的業務組合。這個數字——EPS 線上的指導略低於你的共識。我只是想知道你是否可以澄清一下。我想你稍微提到了一點，但也許第二季度的組合是什麼樣的？

Yes, 1 second here, Walt. The second quarter, we're projecting that the capital will be about 40% of the mix. So parts and consumables, 60%. So as you can see, as we're -- and that's as we move through the year, we're going to have -- that's kind of how it's going to play out. We had our -- I think this will be our best quarter in terms of parts and consumable mix at 66%. And then you'll see second, third and fourth, we -- it will be much heavier on the capital side.

是的，這裡有 1 秒，Walt。第二季度，我們預計資本將佔組合的 40% 左右。所以零件和消耗品，60%。所以正如你所看到的，正如我們所看到的那樣——這就是我們在這一年中的發展，我們將會有——這就是它的結果。我們有——我認為這將是我們在零件和消耗品組合方面最好的一個季度，達到 66%。然後你會看到第二、第三和第四，我們——在資本方面會更重。

Okay. And then another question for maybe later in the year and kind of the cautiousness because of the monetary policy. We've seen some OCC prices, lumber, OSB coming down. And I wonder what the project funnel from your customers is looking like. What kind of discussions are you having with them about future capacity adds?

好的。然後可能在今年晚些時候提出另一個問題，以及由於貨幣政策而採取的謹慎態度。我們已經看到一些 OCC 價格、木材、OSB 價格下降。我想知道您的客戶的項目漏斗是什麼樣的。您與他們就未來的容量增加進行了什麼樣的討論？

So I don't know if you saw the article in The Journal this morning, but it was talking about how housing has bounced back up a little bit. What we've experienced, certainly what we experienced in the first quarter, I would say, was that for the last couple of years, a lot of the mills -- a lot of our customers were running full out and really didn't take their traditional downtimes to do maintenance, upgrades, refurbishments. And so in the first quarter, we saw a fair amount of activity around that where they're now taking the opportunity because things aren't running at 100% of utilization the way they were the last couple of years.

所以我不知道你今天早上是否看到了《華爾街日報》上的這篇文章，但它在談論住房是如何反彈一點點的。我們所經歷的，當然是我們在第一季度所經歷的，我想說的是，在過去的幾年裡，很多工廠——我們的很多客戶都在全力以赴，而且真的沒有接受他們傳統的停機時間進行維護、升級、翻新。因此，在第一季度，我們看到了圍繞他們現在抓住機會的大量活動，因為事情並沒有像過去幾年那樣以 100% 的利用率運行。

There has been some softness, I would say, a little bit on the packaging side. We've seen some mill downtime announced not only in the U.S. but in China as well. So I think they're kind of in the same position we're in. Everybody is trying to discern what the back half of the year is going to look like and what interest rates are going to do and what the bankers are going to do. So I think it's a little unclear, although I do think most people are expecting some moderation.

有一些柔軟，我會說，在包裝方面有點。我們看到不僅在美國而且在中國也宣布了一些工廠停工。所以我認為他們和我們處於同樣的位置。每個人都在試圖辨別今年下半年會是什麼樣子，利率會怎樣，銀行家會怎麼做.所以我認為這有點不清楚，儘管我確實認為大多數人都期待一些適度。

They had -- they've made a lot of money, a lot of money in the last couple of years. And so they're using that money to upgrade their facilities, to get more production, to become more efficient, and we benefited from that in the first quarter. And there could still be more of that as the year goes on. But I do think the overall economic activity level is forecasted to slow down some. And as you know, when you've got 2/3 of your business being parts and consumables, they're a function of the operating rates. So if operating rates slow down a little bit, we'll see a corresponding slowdown in our activity. And that's really the question. That's why we're being somewhat cautious for the back half of the year.

在過去的幾年裡，他們賺了很多錢，賺了很多錢。所以他們用這筆錢來升級他們的設施，提高產量，提高效率，我們在第一季度從中受益。隨著時間的推移，這樣的情況可能還會更多。但我確實認為整體經濟活動水平預計會放緩一些。如您所知，當您的業務的 2/3 是零件和消耗品時，它們是開工率的函數。因此，如果開工率稍微放緩，我們的活動就會相應放緩。這才是真正的問題。這就是為什麼我們對今年下半年持謹慎態度。

Okay. Got it. And then maybe a last one for me, just about pricing strategies. I know that you guys have handled the supply chains and price/cost, from my perspective, pretty well. But I wonder if you could just maybe refresh us on pricing last year and what you're thinking about for pricing to offset any inflation for 2023.

好的。知道了。然後對我來說可能是最後一個，關於定價策略。我知道你們在我看來很好地處理了供應鍊和價格/成本。但我想知道您是否可以向我們介紹一下去年的定價以及您正在考慮如何定價以抵消 2023 年的任何通貨膨脹。

Well, first and foremost, we always work very hard to try to lower our cost so that we manage those cost increases. Our customers, of course, don't like us having to pass those on to them, just like we don't like our vendors passing cost on to us. So we're always working hard to come up with ways to lower our input cost so that we can maintain our competitive position in the marketplace.

好吧，首先，我們總是非常努力地努力降低成本，以便我們管理這些成本增加。當然，我們的客戶不喜歡我們必須將這些轉嫁給他們，就像我們不喜歡我們的供應商將成本轉嫁給我們一樣。因此，我們一直在努力尋找降低投入成本的方法，以保持我們在市場上的競爭地位。

But there are instances where you just can't -- you can't get any more savings. And in those cases, we're sometimes required to pass those on to our customers. This year, I think you're going to see less by increases across the board in all industries because demand is going to be down a little bit. And to be quite frank, last year, people were more concerned about whether they could get something delivered to them than they were about the price.

但在某些情況下，您就是做不到——您無法獲得更多的儲蓄。在這些情況下，我們有時需要將這些傳遞給我們的客戶。今年，我認為你會看到所有行業的全面增長都會減少，因為需求會有所下降。坦率地說，去年，人們更關心的是能否將東西送到他們手中，而不是價格。

And the supply chain logistics has improved substantially, so you don't have kind of that mentality where, first and foremost, I need to deliver. I'll worry about the products later. That's not the case anymore. And so I think there's a lot of scrutiny on pricing. And therefore, we're working hard to contain our cost to make sure we maintain our competitive position.

而且供應鏈物流已經有了很大的改善，所以你不會有那種首先是我需要交付的心態。我稍後會擔心產品。現在不是這樣了。所以我認為對定價有很多審查。因此，我們正在努力控製成本，以確保我們保持競爭地位。

Okay. Makes sense.

好的。說得通。

(Operator Instructions) Looks like there's no further questions. So at this time, I would like to turn it back to Jeff Powell for closing remarks.

（操作員說明）看起來沒有其他問題了。所以此時，我想把它轉回 Jeff Powell 的閉幕詞。

Thank you, Gerald. Before wrapping up the call today, I just wanted to leave you with a few takeaways. First quarter was an excellent start to 2023 with high demand for our parts and good project activity, which led to record bookings and record backlog. Although there are continuing economic headwinds, our employees around the globe continue to focus on meeting our customers' needs with innovative technologies and solutions that deliver long-term value to our stakeholders.

謝謝你，杰拉德。在結束今天的電話會議之前，我只想給你一些要點。第一季度是 2023 年的一個良好開端，對我們的零件的高需求和良好的項目活動導致創紀錄的預訂和創紀錄的積壓。儘管經濟持續逆風，但我們在全球的員工繼續專注於通過創新技術和解決方案滿足客戶的需求，為我們的利益相關者帶來長期價值。

Our financial health is excellent, and our ability to generate strong free cash flow has us well positioned to capitalize on growth opportunities. And we look forward to delivering exceptional value to our stakeholders again in 2023.

我們的財務狀況非常好，我們產生強大自由現金流的能力使我們能夠很好地利用增長機會。我們期待在 2023 年再次為我們的利益相關者提供卓越的價值。

With that, I want to thank you for joining the call today, and we look forward to updating you again next quarter.

有了這個，我要感謝你今天加入電話會議，我們期待下個季度再次更新你。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了程序。您現在可以斷開連接。