Kaman Corp (KAMN) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Kaman Corporation Q2 2023 Conference Call. (Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, [Jamie Reno], Assistant Controller. Please go ahead.

美好的一天，感謝您的支持。歡迎參加卡曼公司 2023 年第二季電話會議。 （操作員指示）請注意，今天的會議正在錄製中。我現在想將會議交給今天的發言者，助理控制員 [Jamie Reno]。請繼續。

Good morning. Welcome to Kaman's Second Quarter 2023 Earnings Call. Leading the call today are Ian Walsh, Chairman, President and Chief Executive Officer; and Jamie Coogan, Senior Vice President, Chief Financial Officer and Treasurer. Before we begin, please note that some of the information discussed during today's call will consist of forward-looking statements setting forth our current expectations with respect to the future of our business, the economy and other events.

早安.歡迎參加 Kaman 2023 年第二季財報電話會議。今天主持會議的是董事長、總裁兼執行長 Ian Walsh；以及資深副總裁、財務長兼財務主管 Jamie Coogan。在我們開始之前，請注意，今天電話會議中討論的一些資訊將包括前瞻性陳述，闡述我們當前對業務、經濟和其他事件的未來的預期。

These include projections of revenue, earnings and other financial items, statements on plans and objectives of the company or its management, statements of future economic performance and assumptions underlying these statements regarding the company and its business. The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors. Additionally, the company revised its prior period results due to errors identified related to inventory, which were determined not material to our previously issued financial statements.

其中包括收入、收益和其他財務項目的預測、公司或其管理層的計劃和目標的報表、未來經濟業績的報表以及這些報表所依據的有關公司及其業務的假設。由於許多因素，該公司的實際結果可能與任何前瞻性陳述中所示的結果有重大差異。此外，由於發現與庫存相關的錯誤，該公司修正了前期業績，這些錯誤被認為對我們先前發布的財務報表並不重要。

These items are described more fully in the company's latest filings with the Securities and Exchange Commission, including the company's second quarter 2023 results included on Form 10-Q and the current report on Form 8-K filed yesterday evening together with our earnings release. We also expect to discuss certain financial measures and information that are non-GAAP measures as defined in applicable SEC rules and regulations. Reconciliations to the company's GAAP measures are included in the earnings release filed with yesterday's 8-K.

這些項目在公司向美國證券交易委員會提交的最新文件中有更全面的描述，包括表格10-Q 中包含的公司2023 年第二季度業績以及昨天晚上與我們的收益發布一起提交的表格8-K中的當前報告。我們也希望討論適用的 SEC 規則和法規中定義的某些非 GAAP 衡量標準的財務衡量標準和資訊。昨天向 8-K 提交的收益報告中包含了對公司 GAAP 衡量標準的調整。

Finally, we posted an earnings call supplement on our website, which provides additional context on our financial performance. You can find this presentation at www.kaman.com/investors/quarterlyearningscalls. Now I'll turn the call over to Ian Walsh.

最後，我們在網站上發布了收益電話會議補充資料，其中提供了有關我們財務業績的更多背景資訊。您可以在 www.kaman.com/investors/quarterlyearningscalls 上找到此簡報。現在我將把電話轉給伊恩·沃爾什。

Good morning, everyone, and thank you for joining our second quarter 2023 earnings call. Performance in the quarter was very strong, and we're delivering on our commitments to drive improved profitability and cash flow performance.

大家早安，感謝您參加我們的 2023 年第二季財報電話會議。本季的業績非常強勁，我們正在兌現提高獲利能力和現金流績效的承諾。

Based on this performance, we are revising our guidance for the full year and now expect higher adjusted EBITDA in the range of $97.5 million to $107.5 million on sales volumes, consistent with our prior expectations. Net sales grew 21.4% over the prior year period to $195.2 million, benefiting from the contribution of Aircraft Wheel & Brake and organic growth of 8.2%.

基於這項業績，我們正在修改全年指導，目前預計調整後的 EBITDA 銷售額將達到 9,750 萬美元至 1.075 億美元，與我們先前的預期一致。受益於飛機機輪和煞車的貢獻以及 8.2% 的有機成長，淨銷售額較上年同期成長 21.4%，達到 1.952 億美元。

Results in the quarter demonstrate the continued strength we are seeing across our Engineered Products segment, which posted top line growth of 48.7% or 25.1% organically over the prior year. We are pleased to report that all of our end markets have performed well during the first half of the year, led by commercial, business and general aviation, where we benefited from the Aircraft Wheel & Brake acquisition and organic growth which was particularly strong across our Engineered Products portfolio, with the most meaningful growth coming from our engine aftermarket products.

本季的業績證明了我們在工程產品部門看到的持續強勁勢頭，該部門的營收比上一年有機增長了 48.7% 或 25.1%。我們很高興地報告，今年上半年，我們所有的終端市場都表現良好，其中以商業、公務和通用航空為主導，我們受益於飛機機輪和製動器的收購以及有機增長，這在我們整個業務領域尤其強勁。工程產品組合，其中最有意義的成長來自我們的引擎售後市場產品。

We see momentum in the defense end market with double-digit growth in both the quarter and first half of the year. The success is primarily attributed to the strength of our core defense portfolio, which helped to offset softness in our safe and armed devices related to the wind down of the JPF program.

我們看到國防端市場的動能在本季和上半年均呈現兩位數成長。這項成功主要歸功於我們核心防禦組合的實力，這有助於抵消與 JPF 計劃結束相關的安全和武裝設備的疲軟。

In the medical end market, we remain in a positive trajectory with growth in the first half exceeding 10%. Stronger medical sales were attributed to higher volume on our miniature bearings and springs, seals and contacts used in medical implantables and devices.

在醫療終端市場，我們仍保持積極的發展軌跡，上半年成長超過10%。醫療銷售的強勁成長歸因於我們用於醫療植入物和設備的微型軸承和彈簧、密封件和觸點的銷售增加。

Last year, industrial end market sales remained steady with modest organic growth in the period. We also continue to work diligently to reduce our costs and improve efficiency, and I'm pleased to report that these efforts led to an improvement in our net earnings for the period and a meaningful improvement in both adjusted EBITDA dollars and margin.

去年，工業終端市場銷售保持穩定，有機成長適度。我們也繼續努力降低成本並提高效率，我很高興地報告說，這些努力使我們當期淨利潤有所改善，調整後的 EBITDA 美元和利潤率也得到了有意義的改善。

We achieved adjusted EBITDA of $32 million or 16.4% of sales in the second quarter of 2023 compared to $16.1 million or 10% of sales in 2022. We've outlined and continued to execute on our strategic initiatives aimed at improving our profitability and streamlining operations to reduce variability.

2023 年第二季度，我們的調整後EBITDA 為3,200 萬美元，佔銷售額的16.4%，而2022 年為1,610 萬美元，佔銷售額的10%。我們已經概述並繼續執行旨在提高盈利能力和簡化營運的策略舉措以減少變異性。

First, we disclosed our plan to consolidate our JPF operations into a single facility. This will enable us to maintain operational readiness while significantly cutting down program costs as the volumes wind down. We remain on track to our plan for the facility closure and have begun to realize cost savings for these actions. We continue to deliver on our remaining JPF backlog and have recognized approximately $7 million in EBITDA related to this program in the first half of the year, which is not expected to repeat in the second half. We continue to pursue direct commercial sales of our JPF to allied countries and will provide further information when we receive these orders.

首先，我們揭露了將 JPF 業務整合為單一設施的計劃。這將使我們能夠保持營運準備狀態，同時隨著數量的減少而大幅降低專案成本。我們仍在按計劃執行設施關閉計劃，並已開始實現這些行動的成本節約。我們繼續履行剩餘的 JPF 積壓工作，並在上半年確認了與該計劃相關的約 700 萬美元的 EBITDA，預計下半年不會再出現這種情況。我們將繼續尋求向盟國直接商業銷售我們的 JPF，並將在收到這些訂單時提供進一步的資訊。

As we've disclosed previously, we have made the hard decision to discontinue production of our K-MAX aircraft. We successfully sold 1 aircraft during the second quarter, and we are actively pursuing the sale of the 2 remaining helicopters, which could provide incremental cash flow for the year.

正如我們之前所揭露的，我們做出了停止生產 K-MAX 飛機的艱難決定。我們在第二季度成功出售了 1 架飛機，並且正在積極尋求出售剩餘的 2 架直升機，這可以為全年提供增量現金流。

Our air vehicles team continues to work to pivot to higher-margin growth opportunities going forward. Delivering our cost reduction commitment remains an important focus for the team. To date, the actions we have taken are expected to provide annual savings between $22 million and $25 million by 2024. And through the second quarter, we are on track to deliver these savings. Additionally, we are working to identify additional cost savings and margin enhancement opportunities that could provide benefits in excess of our previously announced programs. Turning to our segments.

我們的飛行器團隊將繼續努力尋求未來更高利潤的成長機會。兌現我們降低成本的承諾仍然是團隊的重要關注點。迄今為止，我們採取的行動預計到 2024 年每年可節省 2,200 萬至 2,500 萬美元。到第二季度，我們預計將實現這些節省。此外，我們正在努力尋找額外的成本節約和利潤提高機會，這些機會可以提供超出我們先前宣布的計劃的收益。轉向我們的細分市場。

And beginning with Engineered Products, we are extremely pleased with the strong segment performance that continued through the first half, leading to overall sales growth of 48.7% or 25.1% organically. We saw growth across our Engineered Products portfolio in the second quarter as we are recovering back to pre-COVID levels for our commercial aerospace and defense products and are benefiting from our additional market share wins.

從工程產品開始，我們對上半年持續強勁的細分市場表現感到非常滿意，整體銷售額有機成長 48.7% 或 25.1%。第二季度，我們的工程產品組合實現了成長，我們的商業航空航太和國防產品正在恢復到新冠疫情前的水平，並受益於我們額外贏得的市場份額。

Higher sales led to improved profitability with operating margins of 23% and adjusted EBITDA margin in excess of 30%. Organic growth in the quarter was primarily driven by higher demand for our self-lubricating bearings and engine aftermarket products.

銷售額的增加提高了獲利能力，營業利潤率達到 23%，調整後的 EBITDA 利潤率超過 30%。本季度的有機成長主要是由於對我們的自潤滑軸承和引擎售後產品的需求增加所推動的。

Our segment level backlog remains robust as we -- as a result of strong demand and the addition of Aircraft Wheel & Brake. We expect to see continued strong performance for this segment in the second half of the year given the year-to-date strength and the continued demand for our products.

由於強勁的需求以及飛機機輪和煞車的增加，我們的細分市場積壓訂單仍然強勁。鑑於今年迄今的實力和對我們產品的持續需求，我們預計下半年該細分市場將繼續表現強勁。

For the long run, we expect this segment to grow in the high single-digit to low double-digit range. In our Precision Products segment, sales declined 32%, which is almost entirely due to the anticipated wind down of JPF program. Segment operating income and adjusted EBITDA were negative $1.9 million and negative $1.1 million, respectively, as we continue to make investments in next-generation technologies. The segment continues to be an area of focus for us to improve costs through the footprint consolidation project and working capital improvements with the [succession] of K-MAX production, which we anticipate will drive improved operating results in the coming quarters.

從長遠來看，我們預計該細分市場將在高個位數到低兩位數的範圍內成長。在我們的精密產品部門，銷售額下降了 32%，這幾乎完全是由於 JPF 計畫的預期結束。由於我們繼續投資下一代技術，部門營業收入和調整後 EBITDA 分別為負 190 萬美元和負 110 萬美元。該細分市場仍然是我們的重點領域，我們透過佔地面積整合項目和透過 K-MAX 生產[連續]改善營運資本來降低成本，我們預計這將推動未來幾季營運績效的改善。

In our Structures segment, sales of $33.6 million improved both sequentially and year-over-year by 1% and 13%, respectively. Segment level profitability continued to be pressured as we reported a small operating loss of $106,000 and adjusted EBITDA of $675,000.

在我們的結構部門，銷售額為 3,360 萬美元，環比和年比分別成長 1% 和 13%。部門層級的獲利能力持續受到壓力，我們報告營業虧損為 106,000 美元，調整後 EBITDA 為 675,000 美元。

Segment performance in the quarter benefited from the receipt of an insurance claim settlement for costs incurred in the prior year related to a fire at one of our suppliers. As we move into the second half of 2023, we are pleased with the progress we have made so far this year.

本季的部門業績得益於收到了去年與我們的一家供應商發生火災相關的費用的保險索賠和解。進入 2023 年下半年，我們對今年迄今的進展感到高興。

The positive outcomes can be attributed to our transformational strategy to reduce the variation in our business and improve our quality of earnings, free cash flow, the strong growth momentum in our Engineered Products segment and the successful execution of planned actions initiated in 2022.

這些正面成果可歸因於我們減少業務變化、提高獲利品質的轉型策略、自由現金流、工程產品部門的強勁成長動能以及 2022 年啟動的計畫行動的成功執行。

As we look ahead, we remain focused on several key objectives: Our first objective is to ensure ample capital resources are allocated to capitalize on the most promising growth opportunities within our Engineered Products segment. We continue to foster innovation and strategic partnerships with customers to drive robust year-over-year organic growth, high margins and strong cash flow generation.

展望未來，我們仍然專注於幾個關鍵目標：我們的首要目標是確保分配充足的資本資源，以利用我們的工程產品領域最有前途的成長機會。我們持續培養創新和與客戶的策略合作夥伴關係，以推動強勁的逐年有機成長、高利潤和強勁的現金流產生。

We are dedicated to transitioning our Precision Products segment by making thoughtful and targeted investments in next-generation products. The JPF facility reduction plans and the conclusion of K-MAX production were all strategic moves to improve our operating performance. These actions will reposition the segment for more profitable growth in the remaining programs as we seek to benefit from the investments we are making in future autonomous components and the unmanned KARGO UAV platform.

我們致力於透過對下一代產品進行深思熟慮和有針對性的投資來轉變我們的精密產品部門。 JPF 設施削減計劃和 K-MAX 生產的結束都是改善我們經營業績的策略性舉措。這些行動將重新定位該部門，以便在剩餘項目中實現更多利潤成長，因為我們尋求從我們對未來自主組件和無人駕駛 KARGO 無人機平台的投資中受益。

In our Structures segment, we are diligently implementing best practices, aiming for all 3 of our structures businesses to operate in a healthy, consistent manner. Our focus also includes reducing our leverage and interest expense after the acquisition of Aircraft Wheel & Brake.

在我們的結構業務領域，我們正在努力實施最佳實踐，旨在使我們的所有 3 個結構業務都能以健康、一致的方式運作。我們的重點還包括在收購 Aircraft Wheel & Brake 後降低我們的槓桿率和利息支出。

In the quarter, we successfully refinanced our credit facility. I am proud of the hard work the team put forward in securing the $740 million commitment with the amendment of our revolving credit agreement extending the maturity to 2028, while providing sufficient access to capital to repay our 2024 convertible notes and meet our working capital requirements, which Jamie will detail later.

本季度，我們成功為信貸額度進行了再融資。我為團隊所做的辛勤工作感到自豪，透過修訂我們的循環信貸協議，將期限延長至2028 年，確保了7.4 億美元的承諾，同時提供了足夠的資本來償還我們的2024 年可轉換票據並滿足我們的營運資金要求，傑米稍後會詳細介紹。

Our company has successfully navigated some difficult challenges over the past few years, and I am proud of the progress our team has achieved in a short time span. Our employees' dedication, resilience and ingenuity have been instrumental to supporting the transformation of command.

在過去的幾年裡，我們公司成功地應對了一些困難的挑戰，我為我們的團隊在短時間內取得的進步感到自豪。我們員工的奉獻精神、韌性和聰明才智對於支持指揮轉型發揮了重要作用。

Now I'll turn the call over to Jamie for a detailed analysis of the numbers. Jamie?

現在我將把電話轉給傑米，讓他對這些數字進行詳細分析。傑米？

Thank you, Ian, and good morning, everyone. Today, I will walk you through our second quarter results before turning to our outlook for 2023. Second quarter sales were $195.2 million, up 21.4% from $160.8 million in net sales from the prior year. Higher sales in the quarter were attributable to organic growth of 8.2%, primarily in our Engineered Products segment and the $21.2 million of contribution from our Aircraft Wheel & Brake acquisition. Aircraft Wheel & Brake revenue was little stronger in the second quarter as we pulled forward some volume to make way for their ERP go-live in the third quarter, which was well executed.

謝謝你，伊恩，大家早安。今天，我將向您介紹我們的第二季業績，然後再展望 2023 年。第二季銷售額為 1.952 億美元，比前一年的淨銷售額 1.608 億美元成長 21.4%。本季銷售額的成長歸因於 8.2% 的有機成長，主要是我們的工程產品部門以及我們的飛機機輪和煞車收購帶來的 2,120 萬美元的貢獻。飛機機輪和煞車的收入在第二季度略有增長，因為我們提前了一些銷量，為他們的 ERP 在第三季度的上線讓路，該計劃執行得很好。

This was partially offset by the expected lower JPF volume. Operating income in the second quarter was $17.6 million compared to $1.9 million in the prior year. Adjusted EBITDA in the second quarter was $32 million compared to just $16.1 million in the prior year. This improved performance reflects the benefit of strong organic growth, cost-out measures we have taken to improve margin and better leveling of our quarterly performance. EBITDA margin increased to 16.4% from 10% in the prior year.

這被預期的 JPF 交易量下降部分抵消。第二季營業收入為 1,760 萬美元，上年同期為 190 萬美元。第二季調整後 EBITDA 為 3,200 萬美元，而去年同期僅 1,610 萬美元。這種業績的改善反映了強勁的有機成長、我們為提高利潤率而採取的成本支出措施以及更好地平衡季度業績的好處。 EBITDA 利潤率從前一年的 10% 增至 16.4%。

We continue to execute on our cost savings initiatives and continue to expect total savings of $20 million to $25 million in 2024, with around $12 million to $15 million to be realized in 2023.

我們將繼續執行成本節約計劃，預計到 2024 年，總成本節省將達到 2,000 萬至 2,500 萬美元，2023 年將實現約 1,200 萬至 1,500 萬美元。

Turning back to our results. Gross margin was 37%, which increased 480 basis points compared to the prior year. This was attributable to the addition of Aircraft Wheel & Brake, higher organic volume in our Engineered Products segment, and benefits from our cost savings initiatives. Selling, general and administrative expenses were $41.6 million or 21.3% of sales compared to $39.3 million or 24.4% of sales in the prior year.

回到我們的結果。毛利率為37%，較前一年增加480個基點。這歸因於飛機機輪和煞車的增加、工程產品部門有機銷售的增加以及我們的成本節約計劃的好處。銷售、一般和管理費用為 4,160 萬美元，佔銷售額的 21.3%，而前一年為 3,930 萬美元，佔銷售額的 24.4%。

Higher dollar SG&A was related to the addition of Aircraft Wheel & Brake. As a percentage of sales, lower SG&A was due to the leverage on higher volume, the benefit from our cost control efforts, and lower corporate development costs. Interest expense in the quarter was $10.3 million compared to $2 million in the prior year as a result of higher interest rates and the added debt from Aircraft Wheel & Brake.

SG&A 美元上漲與飛機機輪和煞車的增加有關。從佔銷售額的百分比來看，SG&A 較低是由於銷售增加、我們的成本控制努力帶來的好處以及企業開發成本降低所致。由於利率上升以及 Aircraft Wheel & Brake 債務增加，本季利息支出為 1,030 萬美元，而去年同期為 200 萬美元。

During the period, we refinanced our debt and extended the maturity to 2028, providing us ample visibility to execute on our deleveraging plans. Free cash flow during the period was $17.4 million, which benefited from the sale of a K-MAX aircraft in the quarter.

在此期間，我們對債務進行了再融資，並將期限延長至 2028 年，為我們執行去槓桿計劃提供了充足的可見性。期內自由現金流為 1,740 萬美元，受益於本季出售一架 K-MAX 飛機。

Our convertible notes went current this quarter. We're continuing to evaluate our options for the refinancing of this instrument. And with the amendment to our credit facility, we maintain sufficient capacity to use proceeds from the facility to repay the convertible notes and satisfy our future working capital requirements. We intend to capture the benefits of the lower coupon rate on the convertible notes until we come to a refinancing decision on this instrument.

我們的可轉換票據於本季生效。我們正在繼續評估該工具的再融資選擇。透過對信貸安排的修改，我們保持了足夠的能力來使用該安排的收益來償還可轉換票據並滿足我們未來的營運資金需求。我們打算利用可轉換票據較低票面利率的好處，直到我們就該工具做出再融資決定。

During the second quarter, we reported GAAP net income of $5.3 million or $0.19 per diluted share compared to $3.8 million or $0.13 per diluted share in the year-ago period.

第二季度，我們公佈的 GAAP 淨利潤為 530 萬美元，即稀釋後每股收益 0.19 美元，而去年同期淨利潤為 380 萬美元，即稀釋後每股收益 0.13 美元。

Adjusted net income during the period was $6.2 million or $0.22 per diluted share compared to $8.5 million or $0.30 per diluted share in the prior year period. Lower earnings per diluted share in 2023 was attributable to the higher interest expense and lower pension income, partially offset by the stronger operating results we've seen in the year-to-date and quarter periods.

該期間調整後淨利潤為 620 萬美元，即稀釋後每股收益 0.22 美元，而去年同期調整後淨利潤為 850 萬美元，即稀釋後每股收益 0.30 美元。 2023 年稀釋每股收益較低的原因是利息支出較高和退休金收入較低，但我們在今年迄今和季度期間看到的更強勁的經營業績部分抵消了這一影響。

For a full reconciliation of our GAAP to non-GAAP earnings, please review our earnings press release. Now turning to our outlook. We are revising our full year 2023 guidance. As Ian highlighted, our end markets are demonstrating strong performance. We are successfully increasing our market share in Engineered Products segment, and our overall backlog remains robust.

有關我們的 GAAP 與非 GAAP 收益的完整調節，請查看我們的收益新聞稿。現在轉向我們的展望。我們正在修訂 2023 年全年指引。正如 Ian 所強調的那樣，我們的終端市場表現強勁。我們成功地增加了工程產品領域的市場份額，並且我們的整體積壓仍然強勁。

Our primary focus remains on expanding our highest growth businesses, enabling us to generate more substantial returns. At the same time, we are diligently optimizing our cost structure to align it with the size and requirements of our business. Our results in the first half were ahead of our plan with a portion of our performance attributable to $7.2 million of EBITDA from our JPF program as we delivered against our commitments and a modest pull forward in volume from Aircraft Wheel & Brake ahead of their Q3 ERP go-live.

我們的主要重點仍然是擴大我們成長最快的業務，使我們能夠產生更豐厚的回報。同時，我們正在努力優化成本結構，使其與業務規模和要求保持一致。我們上半年的業績超出了我們的計劃，我們的業績的一部分歸功於我們的JPF 計劃的720 萬美元EBITDA，因為我們兌現了我們的承諾，並且在第三季度ERP 之前，Aircraft Wheel & Brake 的銷量略有成長上線。

Looking at the back half of the year, we do not expect the JPF volume from the first 6 months to recur in the second half. As a result, we continue to target top line growth in 2023 with total revenue in the range of $730 million to $750 million, consistent with our prior expectations.

展望下半年，我們預計前 6 個月的 JPF 交易量不會在下半年重現。因此，我們繼續將 2023 年的營收成長目標定為總營收在 7.3 億至 7.5 億美元之間，這與我們先前的預期一致。

We have lowered our expectations for net earnings to $3.7 million to $11.3 million and diluted EPS to $0.13 per share to $0.40 per share or $0.29 per share to $0.56 per share adjusted due to the higher expectations for interest expense. This increase in our interest expense is offsetting the increase we expect in operating income from our Engineered Products segment, which is driving our higher expected adjusted EBITDA now in the range of $97.5 million to $107.5 million.

由於利息支出預期較高，我們將淨利潤預期下調至 370 萬美元至 1,130 萬美元，並將稀釋後每股收益下調至每股 0.13 美元至 0.40 美元或每股 0.29 美元至 0.56 美元。我們利息支出的增加抵銷了我們預期工程產品部門營業收入的成長，這推動我們預期調整後 EBITDA 達到 9,750 萬美元至 1.075 億美元。

Our expectations for operating cash flows of $60 million to $70 million and free cash flow of $35 million to $45 million remain consistent with our prior guidance as the higher interest expense is offset by the cash benefit of improved performance in the cash collection on the sale of 1 K-MAX aircraft.

我們對營運現金流6000 萬至7000 萬美元和自由現金流3500 萬至4500 萬美元的預期與我們之前的指導保持一致，因為較高的利息支出被出售現金收款績效改善所帶來的現金收益所抵消。1 架 K-MAX 飛機。

As a reminder, to improve the reliability of our guidance and improve transparency, we continue to exclude discrete items, which have historically been high sources of variation. Specifically, these include unawarded or uncertain JPF DCS orders and the sale of the 2 remaining K-MAX aircraft held in inventory.

提醒一下，為了提高我們指南的可靠性並提高透明度，我們繼續排除離散項目，這些項目歷來是高度變化的來源。具體來說，其中包括未授予或不確定的 JPF DCS 訂單以及出售庫存中剩餘的 2 架 K-MAX 飛機。

We also continue to assume no margin contribution from our Structures segment despite the approximately $800,000 of EBITDA we earned in the year-to-date period. We expect to achieve success in these areas, but they are not incorporated in our guidance for 2023.

儘管我們今年迄今賺取了約 80 萬美元的 EBITDA，但我們仍繼續假設我們的結構部門沒有利潤貢獻。我們期望在這些領域取得成功，但它們並未納入我們 2023 年的指導中。

With that, I'll turn the call back over to Ian for closing remarks.

接下來，我會將電話轉回 Ian 進行結束語。

Thanks, Jamie. As we progress through 2023, we are pleased to see that our strategic plans are yielding strong results just as we anticipated. Our team remains aligned, steadfast and dedicated to executing on our long-term strategy to improve total shareholder returns as we turn the corner on our transformational journey.

謝謝，傑米。隨著 2023 年的進展，我們很高興看到我們的策略計畫正如我們預期的那樣取得了強勁成果。我們的團隊保持一致、堅定並致力於執行我們的長期策略，以提高股東總回報，同時我們將迎來轉型之旅。

The outstanding performance of our Engineered Products segment in this quarter demonstrates its earning power and growth potential and remains a focal point for our continued investment. As we continue to make improvements in our Precision Products and Structures segments, we are confident that we will be well positioned to achieve substantial earnings growth and steadily reduce our debt.

本季我們的工程產品部門的出色表現證明了其獲利能力和成長潛力，仍然是我們持續投資的重點。隨著我們在精密產品和結構領域的不斷改進，我們相信我們將處於有利位置，實現大幅獲利成長並穩定減少債務。

We are actively building a culture of enhanced internal discipline, controls and leadership. Our future success will always depend on the talent and dedication of our workforce, and we are immensely grateful for their contributions and teamwork. With that, I'd like to open the line for questions. May we have the first question, please?

我們正在積極建立一種加強內部紀律、控制和領導的文化。我們未來的成功將始終取決於員工的才華和奉獻精神，我們非常感謝他們的貢獻和團隊合作。說到這裡，我想開通提問專線。我們可以問第一個問題嗎？

(Operator Instructions) And our first question comes from the line of Steve Barger with KeyBanc Capital Market.

（操作員說明）我們的第一個問題來自 KeyBanc Capital Market 的 Steve Barger。

This is Jacob Moore on for Steve. Based on your updated but mostly maintained full year guide, I think that implies a slightly worse second half than first. So my first question is, is there something unusual in Engineered Products to the key performance that drove this outcome that's not going to continue in the back half? Was that all pull forward from 3Q?

這是雅各摩爾替史蒂夫發言。根據您更新但大部分維護的全年指南，我認為這意味著下半年的情況比上半年稍差。所以我的第一個問題是，工程產品的關鍵性能是否有一些不尋常的東西導致了這一結果，而這種結果不會在後半段繼續下去？這都是從第三季開始的嗎？

And then a close second to that is on Precision Products. Should we expect similar performance on the operating income line with JPF essentially out of the picture at this point?

緊隨其後的是精密產品。我們是否應該預期營業收入有類似的表現，而 JPF 目前基本上已經不存在了？

Yes. So I'll start, Jacob, with -- in Engineered Products, right? First half results did benefit from the increase in sales we saw on our higher-margin engine aftermarket components. Those were a strong contributor for us in the first half of the year, and specifically in the second quarter. And we do have the opportunity to repeat the performance in that product offering in the back half of the year. However, we're currently forecasting that at a slightly lower volume for the product.

是的。雅各布，我將從工程產品開始，對嗎？上半年業績確實受益於我們利潤率較高的引擎售後零件銷售的成長。這些對我們上半年，特別是第二季做出了巨大貢獻。我們確實有機會在今年下半年重複產品的表現。然而，我們目前預測該產品的銷售量會略有下降。

In addition, and as we mentioned in our prepared remarks, we did pull in a little bit of sales associated with Aircraft Wheel & Brake into Q2 from Q3 in order to kind of derisk the ERP go-live as we continue the integration efforts of that. One of the big components there was getting their new ERP up and running. And that was well executed by the team here in the third quarter. And then finally, sales of our springs, seals and contacts, and these are typically for our medical implantable devices.

此外，正如我們在準備好的發言中提到的那樣，我們確實將一些與飛機機輪和煞車相關的銷售額從第三季度拉到了第二季度，以便在我們繼續整合ERP 的同時降低ERP 上線的風險。 。其中重要的組成部分之一是新 ERP 的啟動和運行。第三節球隊很好地執行了這一點。最後，我們的彈簧、密封件和觸點的銷售，這些通常用於我們的醫療植入設備。

Those typically have a very strong first half of the year with a little bit of softness in the back half. All in all, though, we are working really hard to balance our performance front half to back half. And this requires some form of change in organizational mindset as we work through our forecasting, planning processes.

這些通常在上半年表現非常強勁，而後半段則有些疲軟。但總而言之，我們正在努力平衡前半部和後半部的表現。這需要我們在進行預測、規劃流程時對組織心態進行某種形式的改變。

We believe that strength in the first half of the year does derisk our expected performance in the second half. And at this point, kind of halfway through the year, we are comfortable with where we are, but there -- it's fair to say that there's a disproportionate opportunity relative to the guide on the upside versus the downside. However, we do want to remain disciplined in the approach to guide for the full year given the lessons learned.

我們認為，上半年的強勁表現確實會影響我們下半年的預期表現。在這一點上，也就是今年的一半，我們對自己所處的位置感到滿意，但是公平地說，相對於指南而言，上行與下行的機會不成比例。然而，鑑於吸取的經驗教訓，我們確實希望在全年指導方法上保持紀律。

Okay. Yes, that's helpful, Jamie. And then maybe if I could, just on Precision Products, should we expect similar performance on the operating income line in the back half?

好的。是的，這很有幫助，傑米。然後，也許如果我可以的話，就精密產品而言，我們是否應該期望下半年營業收入線會有類似的表現？

Yes. So on the JPF perspective, right, that did include $7 million in the first half of the year related to JPF. And as we go through the back half of the year, we do expect performance -- the underlying performance of the business had some EAC retro adjustments and other items in the first half, which drove away some of the benefit we expected from JPF. So it's probably fair to think that on a net-net basis, it will be largely in line from half to back half for that segment.

是的。因此，從 JPF 的角度來看，這確實包括上半年與 JPF 相關的 700 萬美元。當我們回顧今年下半年時，我們確實預期業績 - 該業務的基本業績在上半年進行了一些 EAC 復古調整和其他項目，這抵消了我們預期 JPF 的一些收益。因此，可以公平地認為，在淨值基礎上，該細分市場的前半部分到後半部分基本上將保持一致。

Okay. Got it. And then for a second one, just on the balance sheet. I appreciate the color on the convertible notes. So just with the understanding that you want to pay down debt this year and improve your leverage, can you comment on the sustainability of the cash flow you generated in 2Q? Given the sale of that K-MAX and how you expect the back half to look from that perspective?

好的。知道了。然後是第二個，就在資產負債表上。我很欣賞可轉換票據上的顏色。那麼，鑑於您今年希望償還債務並提高槓桿率，您能否評論一下您在第二季度產生的現金流的可持續性？考慮到 K-MAX 的銷售情況，從這個角度來看，您預計後半部分會是什麼樣子？

Yes. Absent the K-MAX, we kind of were largely in line with our expected cash flow performance in the first half. We've historically been a user of cash in the first half of the year. A lot of that has come down, though to the parts of the business that we are currently in the process of working our way through, whether that be K-MAX production, JPF production.

是的。如果沒有 K-MAX，我們上半年的現金流量表現基本上符合我們的預期。從歷史上看，我們在上半年一直是現金用戶。其中很大一部分已經歸結為我們目前正在努力完成的業務部分，無論是 K-MAX 生產還是 JPF 生產。

You may recall historically, those were significant users of cash as we built up inventory typically for deliveries in the back half of the year. That decision we made in the front half, we had some cash commitments that were already on the hook. We believe that the actions we've taken will improve the kind of cadence of cash earnings in future periods.

您可能還記得，從歷史上看，這些人是現金的重要使用者，因為我們通常會為下半年的交貨建立庫存。我們在前半部分所做的決定，我們已經做出了一些現金承諾。我們相信，我們所採取的行動將改善未來時期現金獲利的節奏。

And when we look at our Engineered Products businesses, largely, their conversion metrics are significantly greater than what Kaman has historically seen for cash conversion on an annualized basis. So we feel good. We think that, that cash flow is sustainable in future periods, and we are looking to the back half of the year for continued cash generation, which we will use to continue to delever.

當我們審視我們的工程產品業務時，很大程度上，它們的轉換指標明顯高於卡曼歷史上全年計算的現金轉換指標。所以我們感覺很好。我們認為，現金流在未來時期是可持續的，我們期待今年下半年持續產生現金，我們將用它來繼續去槓桿化。

(Operator Instructions)

（操作員說明）

And we have a follow-up question from Steve Barger.

史蒂夫·巴格向我們提出了後續問題。

Yes. Jacob, we did get word this morning that some of the other analysts are on other calls this morning. And so there were some conflicts relative to timing. So I'm happy to take any follow-up questions you might have.

是的。雅各布，我們今天早上確實得到消息，其他一些分析師今天早上正在參加其他電話會議。因此，在時間安排上存在一些衝突。因此，我很樂意回答您可能提出的任何後續問題。

Understood. I appreciate that. So first one, just on end markets, specifically in Engineered Products. It looks like commercial area has been running pretty nicely for Kaman lately. Can you just comment on the sustainability of that above-trend growth? Ian, I know you mentioned a high single-digit, low double-digit range over the long term. So today, do you have an idea when we get back down to that sustainable level?

明白了。我很感激。第一個是終端市場，特別是工程產品。看起來卡曼的商業區最近運作得很好。您能否評論一下這種高於趨勢的成長的可持續性？伊恩，我知道你提到了長期來看高個位數、低兩位數的範圍。那麼今天，您對我們何時回到永續水平有什麼想法嗎？

Yes. I think when we look at all the reports, there's clearly a very nice recovery that's happening on the commercial side, predominantly Boeing and Airbus for sure. We're seeing that across not just them, but also Gi, Motorcraft and even business aviation. So I feel very comfortable with the forecast that we've talked about before, where when you look at those end markets for us on the Engineered Products business, they're going to continue to be very strong.

是的。我認為，當我們查看所有報告時，商業方面顯然正在發生非常好的復甦，主要是波音和空中巴士。我們不僅在他們身上看到了這一點，而且在特種部隊、機動飛機甚至公務航空領域也看到了這一點。因此，我對我們之前討論過的預測感到非常滿意，當你看看我們工程產品業務的終端市場時，它們將繼續非常強勁。

As Jamie mentioned, as we mentioned last time, we started the year with record backlogs. Backlogs that, quite frankly, we achieved way earlier than normal. So really, we're focused on the execution piece for Engineered Products. We've got tons of opportunity to drive there across not just the traditional engineering products, but as we mentioned, even the aftermarket side of things.

正如傑米所提到的，正如我們上次提到的，我們年初的積壓量創歷史新高。坦白說，我們比平常更早完成了積壓工作。所以實際上，我們專注於工程產品的執行部分。我們有大量的機會去那裡，不僅是傳統的工程產品，而且正如我們所提到的，甚至是售後市場方面。

And Jacob, I'll just add to that. I think there's probably still some room to run an above average growth for period, specifically as Boeing and Airbus start to get their build rates back to those more historical levels, right? We're still not at those historical build rate levels that we had in 2019. We talked in the past about some market share wins that we were able to make during the downturn, during COVID, which are not fully reflected in the historical results.

雅各布，我補充一下。我認為一段時間內可能仍有高於平均水平的成長空間，特別是隨著波音和空中巴士開始將其建造率恢復到歷史水平，對嗎？我們仍然沒有達到 2019 年的歷史建造率水準。我們過去談到我們在經濟低迷時期、新冠疫情期間能夠贏得一些市場份額，但這些並沒有完全反映在歷史結果中。

And when you look at traffic miles, we've all been to the airport, and airports are crazy busy, but the reality of the situation is we're still kind of below those sort of pre-COVID levels, all things being equal. So they're running older planes more and more. That benefits the kind of aftermarket components of our business. And we still have opportunity to see build rate increases and those market shares come in meaningfully to the top line performance.

當你看一下交通里程時，我們都去過機場，機場非常繁忙，但實際情況是，在所有條件相同的情況下，我們仍然低於新冠疫情前的水平。所以他們越來越多地使用舊飛機。這有利於我們業務的售後市場組成部分。我們仍然有機會看到建造率的提高，而這些市場份額對營收業績具有重要意義。

Okay. Great. That's helpful. And my last couple here, just on KARGO UAV. First, can you just give us an update on the time line for the initial full-scale test flight?

好的。偉大的。這很有幫助。我最後一對是在 KARGO 無人機上。首先，您能否介紹一下首次全面試飛的最新時間表？

Yes, sure. So we, the team, continues to do a lot of work on the testing side of things as we get to first flight, which we're very, very close to. So for example, there's been a lot of static and dynamic testing.

是的，當然。因此，當我們即將實現首次飛行時，我們團隊將繼續在測試方面做大量工作，我們已經非常非常接近了。例如，有很多靜態和動態測試。

We've had the whole full rotor system now fully tested. We just recently received FAA authorization to fly. Propulsion system and the autonomy package have all been tested. So -- we were hoping, obviously, as we talked about to have a first flight earlier in the year, but breaking ground is a big deal, a big milestone. So we are very, very close. We'll share that once we do.

我們現在已經對整個完整轉子系統進行了全面測試。我們最近剛獲得美國聯邦航空管理局 (FAA) 的飛行授權。推進系統和自主套件均經過測試。所以——顯然，正如我們談到的那樣，我們希望在今年早些時候進行首次飛行，但破土動工是一件大事，一個重要的里程碑。所以我們非常非常接近。一旦我們這樣做了，我們就會分享。

And once we do break ground from a time line and it's really full speed ahead to get to next year, which is the final fly off for the MOSAIC competition with the Marine Corps, which is the program of record that we're working with right now.

一旦我們確實從時間線上破土動工，我們就會全速前進到明年，這是與海軍陸戰隊的 MOSAIC 競賽的最後一次起飛，這是我們正在合作的記錄項目。現在。

And we've also got, like we said, orders from PHI. They're very excited about it. So that's the time line. This is a big year for us. This is first flight for this year, and we're very, very close.

正如我們所說，我們也收到了 PHI 的訂單。他們對此感到非常興奮。這就是時間軸。今年對我們來說是重要的一年。這是今年的第一次飛行，我們已經非常非常接近了。

Okay. Got it. That actually leads sort of into my second question here, which is, what the competitive environment looks like in that MOSAIC program. I'm really trying to get a sense for the amount of effort and dollars you'll have to commit over the -- to commit to continue being competitive for the next few years?

好的。知道了。這實際上引出了我的第二個問題，即 MOSAIC 計劃中的競爭環境是什麼樣的。我真的很想了解您必須付出多少努力和金錢才能承諾在未來幾年內繼續保持競爭力？

Well, the MOSAIC program right now is us and one other competitor. The market space, there are others in the space mostly on the, say, commercial side, some on the early development side, a lot of it's kind of in electric mode.

嗯，目前的 MOSAIC 專案是我們和另一個競爭對手。市場空間，該領域還有其他領域，主要是商業方面，有些是早期開發方面，其中許多是電動模式。

We're a traditional turbine mode, the power plant. So -- on the (inaudible) dynamic, we anticipate the Marine Corps, and again, this is fluid relative to when we do a fly off next year. And when they down select -- and we honestly don't know if they're going to down select to just one, or they actually may select both, depending on how they want to go and who -- what the competitor shows up with.

我們是傳統的渦輪機模式，發電廠。因此，就（聽不清楚）的動態而言，我們預計是海軍陸戰隊，而且，相對於我們明年的飛行而言，這是不穩定的。當他們向下選擇時——老實說，我們不知道他們是否會只向下選擇一個，或者他們實際上可能會選擇兩者，這取決於他們想要如何去以及誰——競爭對手會出現什麼。

So that's good news for us. We feel like we're in a very strong position to win that relative to the maturity of our model and the approach we've taken with more off-the-shelf and proven parts and technology and things like that.

這對我們來說是個好消息。我們覺得，相對於我們模型的成熟度以及我們採用更多現成的、經過驗證的零件和技術等的方法，我們處於非常有利的位置來贏得這一勝利。

(Operator Instructions)

（操作員說明）

I see no further questions at this time. I will turn the call back over to Jamie Reno.

目前我沒有看到任何進一步的問題。我會將電話轉回給傑米·雷諾。

Thank you for joining us on today's conference call. We look forward to speaking with you again when we report our third quarter results.

感謝您參加今天的電話會議。我們期待在報告第三季業績時再次與您交談。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。