Kimball Electronics Inc (KE) 2025 Q1 法說會逐字稿

Good morning.

早安.

Ladies and gentlemen, welcome to Kimball Electronics first quarter, fiscal 2025 earnings conference call.

女士們、先生們，歡迎參加 Kimball Electronics 2025 財年第一季財報電話會議。

My name is Maria and I'll be the facilitator for today's call.

我叫瑪麗亞，我將擔任今天電話會議的協調人。

All lines have been placed in a listen-only mode to prevent any background noise.

所有線路均已置於只聽模式，以防止任何背景噪音。

After the completion of the prepared remarks from Kimball Electronics leadership team.

金博爾電子領導團隊完成準備好的演講後。

(Operator Instructions).

（操作員說明）。

Today's call, November 5, 2024, is being recorded.

今天（2024 年 11 月 5 日）的通話正在錄音。

A replay of the call will be available on the investor relations page of the Kimball Electronics website.

金博爾電子網站的投資者關係頁面將提供電話會議的重播。

At this time, I would like to turn the call over to Andy Treasure and Investor relations Officer, Mr. Regrut.

現在，我想將電話轉給 Andy Treasure 和投資者關係官員 Regrut 先生。

You may begin.

你可以開始了。

Thank you and good morning, everyone.

謝謝大家，早安。

Welcome to our first quarter conference call with me here today is Rich Phillips, our Chief Executive Officer and Jana Croom Chief Financial Officer.

歡迎參加我們今天第一季的電話會議，我們的執行長 Rich Phillips 和 Jana Croom 財務長。

We issued a press release yesterday afternoon with our results for the first quarter of fiscal 2025 ended September 30, 2024, to accompany today's call presentation has been posted to the investor relations page on our company website.

我們昨天下午發布了一份新聞稿，其中包含截至 2024 年 9 月 30 日的 2025 財年第一季度業績，伴隨今天的電話會議，已發佈到我們公司網站的投資者關係頁面上。

Before we get started, I'd like to remind you that we will be making forward-looking statements that involve risk and uncertainty and are subject to our safe harbor provisions as stated in our press release and sec filings and that actual results can differ materially from the forward-looking statements.

在我們開始之前，我想提醒您，我們將做出涉及風險和不確定性的前瞻性陳述，並受到我們的新聞稿和證券交易委員會文件中所述的安全港條款的約束，並且實際結果可能存在重大差異從前瞻性陳述來看。

Our commentary today will be focused on adjusted non-GAAP results, reconciliations of GAAP to non-GAAP amounts are available in our press release, this morning.

我們今天的評論將集中於調整後的非公認會計原則結果，公認會計原則與非公認會計原則金額的對帳可在我們今天早上的新聞稿中找到。

Rich will start the call with a few opening comments.

里奇將在通話開始時發表一些開場白。

Jana will review the financial results for the quarter and guidance for fiscal 2025 and Rich will complete our prepared remarks before taking your questions.

Jana 將審查本季度的財務業績和 2025 財年的指導，Rich 將在回答您的問題之前完成我們準備好的發言。

I'll now turn the call over to Rich.

我現在將電話轉給 Rich。

Thanks Andy and good morning, everyone before we get into the quarterly results and our continued theme to control what we can control.

謝謝安迪，大家早上好，在我們進入季度業績之前，我們繼續以控制我們能控制的事情為主題。

I'd like to take a moment to highlight the progress we have made thus far to strategically position the business for the future.

我想花點時間強調我們迄今為止在對未來業務進行策略定位方面所取得的進展。

First, we restructured the company by divesting the non-core AT&M business and we folded the medical CMO business into our core ems portfolio allowing us greater focus on key and growing areas of the medical vertical.

首先，我們透過剝離非核心 AT&M 業務對公司進行了重組，並將醫療 CMO 業務納入我們的核心 ems 投資組合中，使我們能夠更加專注於醫療垂直領域的關鍵和不斷增長的領域。

We are seeing the differentiation and potential new customer opportunities from this shift.

我們看到了這種轉變所帶來的差異化和潛在的新客戶機會。

Next, and consistent with this move, we have sharpened our strategic focus in all three of our vertical markets to target attractive current and new market spaces that fit our capabilities.

接下來，與這一舉措一致，我們加強了在所有三個垂直市場的戰略重點，以瞄準適合我們能力的有吸引力的當前和新市場空間。

Some examples of these spaces include domain controllers in automotive off highway equipment and energy storage solutions and industrial and high-level assemblies and drug device combinations in medical.

這些領域的一些範例包括汽車非公路設備中的網域控制器和能量儲存解決方案以及醫療中的工業和高級組件以及藥物設備組合。

Another set of actions to position our business for the future has been on the cost side where we've been very proactive in adjusting our resources and costs to the ongoing market demand, softness.

另一組為未來業務定位的行動是在成本方面，我們一直非常主動地調整我們的資源和成本，以適應持續的市場需求疲軟。

This will serve us well as demand returns to more stable levels.

隨著需求恢復到更穩定的水平，這將對我們很有好處。

In addition, we've been showing off our balance sheet lowering inventory levels by over $150 million and generating significant positive cash flow.

此外，我們還展示了我們的資產負債表將庫存水準降低了超過 1.5 億美元，並產生了大量的正現金流。

Finally, last night, we announced a streamlining of our manufacturing footprint with the closure of our Tampa manufacturing facility, which I'll discuss more in a moment.

最後，昨晚，我們宣布關閉坦帕製造工廠，以精簡我們的製造足跡，我稍後將對此進行更多討論。

But from a strategic perspective, this move will both drive efficiency for the future and will help provide the necessary dry power to meaningfully invest in growing the core business which we intend to do collectively.

但從策略角度來看，此舉既可以提高未來的效率，也有助於提供必要的乾動力，以有意義地投資於發展我們打算共同開展的核心業務。

We believe this series of strategic moves will position us very well for the future.

我們相信這一系列的策略性舉措將為我們的未來做好準備。

As I mentioned a moment ago, we announced last night that we made the difficult decision to close our facility in Tampa as part of our objective to sharpen the strategic focus of the company.

正如我剛才提到的，我們昨晚宣布，我們做出了關閉坦帕工廠的艱難決定，作為我們強化公司策略重點的目標的一部分。

This will help us improve competitiveness by leveraging capacity in our global footprint.

這將幫助我們透過利用我們全球足跡的能力來提高競爭力。

While streamlining the operating structure, production activities on existing customer programs will be transferred out of Tampa with the majority of the work going to the newly expanded facility in Mexico and to our jasper facility, we expect operations in Tampa to cease by the end of the fiscal year and we anticipate the facility will close in Q1 of fiscal 2026.

在精簡營運結構的同時，現有客戶專案的生產活動將轉移出坦帕，大部分工作將轉移到墨西哥新擴建的工廠和我們的賈斯珀工廠，我們預計坦帕的營運將在年底前停止。 我們預計該設施將於 2026 財年第一季關閉。

As you can imagine, shutting down a location is a difficult decision and one that we did not take lightly, but we feel it's an appropriate path forward considering the preferences of our customers, our outlook for us manufacturing and an objective of returning the company to profitable growth and stronger performance.

正如您可以想像的那樣，關閉一個工廠是一個艱難的決定，我們並不是輕易做出的決定，但考慮到我們客戶的偏好、我們對製造的前景以及使公司恢復正常的目標，我們認為這是一條適當的前進道路。

We are grateful to the employees in Tampa and their accomplishments since the Repton acquisition in 2007, the team there played a vital role during the pandemic, supplying ventilators to those in need and we appreciate their contributions as part of Kimball throughout this process, we remain committed to doing the right thing for our people, our customers, our suppliers and the local community.

我們感謝坦帕的員工以及他們自2007 年收購Repton 以來所取得的成就，那裡的團隊在大流行期間發揮了至關重要的作用，為有需要的人提供呼吸機，我們感謝他們在整個過程中作為Kimball 的一部分所做的貢獻，我們仍然致力於為我們的員工、客戶、供應商和當地社區做正確的事情。

These actions have been designed to set Kimball up for a bright future.

這些行動旨在為金博爾創造光明的未來。

We look forward to sharing more with you as our strategy unfolds in the quarters to come.

隨著我們的策略在未來幾季的展開，我們期待與您分享更多資訊。

Now, turning to the first quarter with Q1 representing another chapter of controlling what we can control while navigating the challenging operating environment, stemming from sustained end market weakness.

現在，轉向第一季度，第一季度代表著我們在應對終端市場持續疲軟所帶來的充滿挑戰的營運環境的同時，控制我們能控制的事情的另一個章節。

Our results were in line with expectations considering the difficult comparisons from a record setting Q1 last year, we continue to adjust costs, improve working capital management and generate positive cash flow to pay down debt, which was nearly $50 million in Q1 reducing our debt levels to a two-year low net sales in the quarter totaled $374 million.

考慮到與去年創紀錄的第一季度的艱難比較，我們的結果符合預期，我們繼續調整成本，改善營運資金管理並產生正現金流來償還債務，第一季度減少了近 5000 萬美元的債務水平該季度淨銷售額總計3.74 億美元，創兩年新低。

A 15% decrease year over year.

年減15%。

When excluding AT&M from both periods, the decrease was 13% from an end market perspective.

如果將 AT&M 排除在兩個時期之外，從終端市場的角度來看，下降了 13%。

Each of the three verticals we serve posted declines starting with automotive net sales were $188 million down 11% compared to the first quarter last year and 50% of total company sales.

我們服務的三個垂直產業均出現下滑，其中汽車淨銷售額為 1.88 億美元，與去年第一季相比下降 11%，占公司總銷售額的 50%。

The decrease in Q1 occurred in Europe and North America partially offset by a modest increase in Asia.

第一季歐洲和北美的下降被亞洲的小幅成長所部分抵銷。

The decline in the quarter is due to volume softening.

本季的下降是由於銷量疲軟。

A result of overstocking lower demand and dynamic timing of NPIS versus end-of-life production.

由於庫存過剩導致需求下降以及 NPIS 相對於報廢生產的動態時間安排。

As we announced in August, we are working through a setback with an electronic braking program.

正如我們在八月宣布的那樣，我們正在透過電子煞車計劃克服挫折。

Our customer, a tier one supplier learned they will no longer be producing the system for the OEM.

我們的客戶（一級供應商）了解到他們將不再為 OEM 生產系統。

We are supporting the wind down of production and transfer as necessary and expect operating activities to conclude by the end of Q3.

我們支持在必要時減少生產和轉移，並預計營運活動將在第三季末結束。

As such, there was no impact to revenue in the quarter due to this program ending on a positive note, we're on schedule with this same customer for the launch and ramp up of a new breaking program in Romania in Q3 we expect growth in the vertical to return when vehicle sales burn through the elevated inventory levels that exist in the industry wide supply chain.

因此，由於該計劃以積極的方式結束，因此本季的收入沒有受到影響，我們正按計劃與同一客戶在第三季度在羅馬尼亞推出和擴大新的突破計劃，我們預計增長當汽車銷售耗盡整個當產業供應鏈中存在的高庫存水準時，垂直回報。

Next is medical with net sales in the first quarter of $90 million, a 12% decrease compared to the same period last year and 24% of total company.

其次是醫療，第一季淨銷售額為 9,000 萬美元，比去年同期下降 12%，占公司總銷售額的 24%。

The decline in the quarter was heavily concentrated in Asia driven by volume declines due to excess inventory.

本季的下滑主要集中在亞洲，原因是庫存過剩導致銷售下降。

Additionally, North America and Europe were both down slightly as we look forward.

此外，正如我們預期的那樣，北美和歐洲均略有下降。

We're encouraged by the growth prospects in this vertical market.

我們對這個垂直市場的成長前景感到鼓舞。

With our focus on higher level assemblies and fed medical devices.

我們專注於更高層級的組件和醫療設備。

We were recently selected as the sole supplier of the respiratory care final assembly and HL A business for our largest medical customer and we are working toward the fiscal 2026 launch of this program.

我們最近被選為我們最大的醫療客戶的呼吸護理總裝和 HL A 業務的唯一供應商，我們正在努力在 2026 財年啟動該計劃。

Our expertise in manufacturing selected drug devices such as auto injectors is a differentiator in an overall very attractive market and we're encouraged about our current customer discussions and future opportunities in this area.

我們在製造自動注射器等選定藥物設備方面的專業知識在整個非常有吸引力的市場中是一個差異化因素，我們對當前客戶討論和該領域的未來機會感到鼓舞。

Finally, industrial with net sales of $96 million down 22% year over year.

最後，工業淨銷售額為 9,600 萬美元，年減 22%。

When excluding AT&M from both periods, net sales were $4 million.

如果將 AT&M 排除在兩個期間內，淨銷售額為 400 萬美元。

A decrease of 17% and 25% of total company sales.

公司總銷售額分別下降17%和25%。

The decline predominantly occurred in North America and Europe sales in Asia were down slightly with weak demand for internal climate control systems.

下降主要發生在北美和歐洲，由於內部氣候控制系統的需求疲軟，亞洲的銷售額略有下降。

Public safety products and smart meters in Europe which have been commoditizing.

歐洲的公共安全產品和智慧電錶已經商品化。

We expect to return to growth coming from a rebound for climate control products and opportunities in other subverticals within the industrial space.

我們預計氣候控制產品的反彈和工業領域其他垂直領域的機會將恢復成長。

I'll now turn the call over to Jana for more detail on the quarter and insights on the outlook.

我現在將把電話轉給賈娜，以了解有關本季度的更多詳細資訊和對前景的見解。

Jana.

賈娜。

Thank you and good morning, everyone.

謝謝大家，早安。

As Rich mentioned, our decision to close the facility in Tampa was very difficult and I echo his gratitude to our team in Florida.

正如里奇所提到的，我們關閉坦帕工廠的決定非常困難，我也表達了他對我們佛羅裡達州球隊的感激之情。

This decision did not impact the first quarter, and it has not changed our outlook for adjusted results for the full year.

這項決定不會影響第一季度，也沒有改變我們對全年調整後業績的展望。

We will however be incurring additional restructuring expense which I will outline in a moment.

然而，我們將產生額外的重組費用，我將在稍後概述。

Net sales for the first quarter were $374.3 million foreign exchange had less than a 1% impact on sales in the quarter.

第一季淨銷售額為 3.743 億美元，外匯對該季度銷售額的影響不到 1%。

The gross margin rate in Q1 was 6.3%.

第一季毛利率為6.3%。

A 180-basis point decline compared to the first quarter of fiscal 2024.

與 2024 財年第一季相比下降 180 個基點。

With the decrease coming from lower absorption, a result of declining sales as we continue to rightsize the company, we should see a pickup in gross margin in the coming quarters.

隨著我們繼續調整公司規模，銷​​售額下降，吸收率下降，因此我們應該會看到未來幾季毛利率的回升。

Adjusted selling and administrative expenses in the first quarter were $11 million.

第一季調整後的銷售和管理費用為 1,100 萬美元。

A $3.5 million or 24% reduction compared to the $14.5 million.

與 1,450 萬美元相比，減少了 350 萬美元，即 24%。

We reported in Q1 last year, the decrease was driven by our efforts to align discretionary spending with current market demand and lower bonus expense along with only one month of expense from AT&M in the quarter.

我們在去年第一季度報告稱，這一下降是由於我們努力使可自由支配支出與當前市場需求保持一致、獎金支出降低以及本季度 AT&M 僅一個月的支出所致。

When measured as a percentage of sales adjusted selling and administrative expenses were 2.9%.

以佔銷售額的百分比衡量時，調整後的銷售和管理費用為 2.9%。

A 40 basis point improvement compared to 3.3% in Q1 last year adjusted operating income for the first quarter was $12.6 million or 3.4% of net sales, which compares to last year's adjusted results of $21 million or 4.8% of net sales.

與去年第一季的3.3% 相比，提高了40 個基點。銷售額的4.8%。

As a reminder, we have adopted the industry norm of excluding stock comp expense from the calculation on this metric.

提醒一下，我們採用了從該指標的計算中排除股票補償費用的行業規範。

The results from last year have been recast to reflect this change.

去年的結果已被重新調整以反映這一變化。

Other income and expense was expense of $6.2 million virtually flat.

其他收入和支出為 620 萬美元，幾乎持平。

With last year's expense of $6.3 million of lower interest expense in the period offset by an increase from foreign currency translation, the effective tax rate was negative 9.4% in the first quarter compared to a positive 18.6 in Q1 of fiscal '24.

去年同期 630 萬美元的較低利息支出被外幣換算的增加所抵消，第一季的有效稅率為負 9.4%，而 24 財年第一季的有效稅率為正 18.6%。

With the rate this quarter driven by a favorable ruling on a prior period.

本季的利率是由上一期的有利裁決推動的。

Tax audit, we expect to resume a normalized tax rate in the mid-20s going forward adjusted net income in the first quarter of fiscal 2025 was $5.5 million or $0.22 per diluted share compared to adjusted net income in Q1 last year of $12 million or $0.48 per diluted share.

稅務審計，我們預計將在20 年代中期恢復正常化稅率，2025 財年第一季調整後淨利潤為550 萬美元，稀釋後每股收益0.22 美元，而去年第一季調整後淨利潤為1200 萬美元，稀釋後每股收益0.48 美元每稀釋股。

Turning now to the balance sheet, cash and cash equivalents at September 30th, 2024 were $76.6 million.

現在來看看資產負債表，截至 2024 年 9 月 30 日的現金和現金等價物為 7,660 萬美元。

Cash flows generated by operating activities in the quarter was $45.5 million.

本季經營活動產生的現金流為 4,550 萬美元。

Our third consecutive quarter of positive cash flow and another example of our focus on controlling what we can control, improving our balance sheet as we work through the challenges of declining revenue.

我們連續第三個季度實現正現金流，這是我們在應對收入下降的挑戰時專注於控制我們可以控制的事情、改善我們的資產負債表的另一個例子。

Cash conversion days were 108 days compared to 103 days.

現金轉換天數為 108 天，而同期為 103 天。

In the first quarter of fiscal 2024 and 100 days in Q4.

2024財年第一季，第四季還有100天。

Last year, we are continuing to focus on improving cash conversion days by actively managing the components inventory ended the quarter at $335.3 million which represents a $147 million or 30% reduction compared to Q1 last year.

去年，我們繼續致力於透過積極管理組件庫存來提高現金週轉天數，該庫存截至本季為 3.353 億美元，與去年第一季相比減少了 1.47 億美元，即 30%。

We are pleased with our progress in reducing inventory and we'll continue to work with our customers to rightsize the current demand outlook.

我們對減少庫存的進展感到高興，我們將繼續與客戶合作，調整當前的需求前景。

Capital expenditures in the first quarter were $13.5 million balance between maintenance requirements and investments in longer term growth.

第一季的資本支出為維護需求和長期成長投資之間的平衡 1,350 萬美元。

Borrowings on our credit facility at September 30th 2024 were $245.9 million a $48.9 million reduction from last quarter and our lowest level of debt in two years, short term liquidity available represented as cash and cash equivalents plus the unused portion of our credit facility totaled $263.4 million at the end of the first quarter.

截至2024 年9 月30 日，我們的信貸安排借款為2.459 億美元，比上季減少4,890 萬美元，債務水準為兩年來最低，可用現金和現金等價物形式的短期流動資金加上信貸安排的未使用部分總計2.634 億美元在第一季末。

In Q1, we invested $2.9 million to repurchase 160,000 shares since October 2015.

第一季度，我們自 2015 年 10 月以來投資 290 萬美元回購了 16 萬股股票。

Under our board authorized share repurchase program, a total of $94.7 million has been returned to our shareholders by purchasing $6.1 million shares of common stock.

根據我們董事會授權的股票回購計劃，透過購買 610 萬美元的普通股，總共向股東返還了 9,470 萬美元。

We have $5.3 million remaining on the repurchase program.

我們的回購計畫還剩 530 萬美元。

We are confirming our guidance for fiscal year 2025 as a reminder, we expect net sales to be in the range of $1.44 billion to $1.54 billion adjusted operating income of 4% to 4.5% of net sales in capital expenditures of $40 million to $50 million.

我們正在確認2025 財年的指導，作為提醒，我們預計淨銷售額將在14.4 億美元至15.4 億美元之間，調整後營業收入佔淨銷售額的4% 至4.5%，資本支出為4000 萬美元至5000 萬美元。

We anticipate the Q2 revenue decline versus prior year to be roughly in line with Q1 but with margin improvement as we continue our restructuring efforts.

我們預計第二季度營收較去年同期的下降幅度將與第一季大致一致，但隨著我們繼續進行重組努力，利潤率將有所改善。

As part of the facility closing in Tampa, we expect to incur approximately $8 million to $11 million in total exit costs including most significantly $6 million to $7 million in employee termination benefits and $2 million to $3 million in logistical costs to transfer and validate programs at our other facilities as well as other ancillary costs.

作為坦帕工廠關閉的一部分，我們預計將產生約800 萬至1100 萬美元的總退出成本，其中最重要的是600 萬至700 萬美元的員工解僱福利以及200 萬至300 萬美元的後勤成本，以轉移和驗證項目我們的其他設施以及其他輔助成本。

We expect these costs will be predominantly cash expenditures in terms of its relative size.

我們預計，就其相對規模而言，這些成本將主要是現金支出。

Tampa has annual revenue of approximately $75 million primarily for customers in the medical and industrial verticals.

坦帕的年收入約為 7500 萬美元，主要面向醫療和工業垂直領域的客戶。

By comparison, we did over $500 million in sales in Mexico.

相較之下，我們在墨西哥的銷售額超過 5 億美元。

In fiscal 2024 we expect the programs transferred out of Tampa to go to Reynosa or come here to jasper to minimize disruption to our customers.

在 2024 財年，我們預計從坦帕轉移出來的項目將轉移到雷諾薩或賈珀，以盡量減少對客戶的干擾。

The setup and qualification process at the new facility will be run in parallel with the normal production runs in Tampa and will be supported with low levels of safety stock.

新工廠的設置和鑑定過程將與坦帕的正常生產並行進行，並將得到低水準安全庫存的支持。

Once the transfers are complete and operations have ceased, we expect to sell the building and land in Tampa with proceeds from the sale exceeding the exit costs.

一旦轉讓完成且營運停止，我們預計將出售坦帕的建築物和土地，出售收益將超過退出成本。

I'll now turn the call back over to Rich.

我現在將把電話轉回給里奇。

Thanks Jana.

謝謝賈娜。

Before we open the lines for questions, I'd like to share a few thoughts in closing with fiscal 2025 representing another year of controlling what we can control our decision to leverage capacity within our global footprint and streamline.

在我們開始提問之前，我想在 2025 財年結束時分享一些想法，2025 財年是我們控制我們可以控制的決定的又一年，以利用我們全球足跡和精簡的產能。

Our operating structure will improve our competitiveness and drive efficiency.

我們的營運結構將提高我們的競爭力並提高效率。

The closure of the facility in Tampa aligns our electronics manufacturing footprint in the US with current and long term market demand and positions the company to better utilize our facilities in low cost regions.

坦帕工廠的關閉使我們在美國的電子製造業務與當前和長期的市場需求保持一致，並使公司能夠更好地利用我們在低成本地區的工廠。

However, we also recognize that we cannot cut our way to greatness and that controlling what we can control means.

然而，我們也意識到，我們無法開闢通往偉大的道路，而控制我們所能控制的東西就意味著。

Also focusing on top line growth, we continue to actively pursue new opportunities where our core manufacturing capabilities support emerging technologies most notably in medical high-level assemblies and drug device combinations.

在註重營收成長的同時，我們繼續積極尋求新的機會，讓我們的核心製造能力支持新興技術，尤其是在醫療高級組件和藥物設備組合方面。

With our strategic focus on ems operations and a strong balance sheet that now supports different avenues of growth.

我們的策略重點是電子醫療服務業務，而強大的資產負債則表現在支持不同的成長途徑。

We have intensified our efforts on where and how to profitably grow.

我們加大了在何處以及如何實現獲利成長的努力。

Last quarter's announcement by our largest medical customer making.

我們最大的醫療客戶發布了上季的公告。

Kimball, the sole supplier on the respiratory care final assembly and H business is a great example where we see the opportunity.

Kimball 是呼吸照護總裝和 H 業務的唯一供應商，這是我們看到機會的一個很好的例子。

I'm excited for the future of the company and thank you for your support operator.

我對公司的未來感到興奮，並感謝您對營運商的支持。

We would now like to open the lines for questions.

我們現在要開放提問熱線。

(Operator Instructions) Mike Crawford, B Riley Securities.

（操作員指示）Mike Crawford，B Riley Securities。

Thank you for giving us all that detail on the Tampa Bay facility.

感謝您向我們提供有關坦帕灣設施的所有詳細資訊。

Can you remind us what it's on the books for currently?

您能提醒我們目前書上的內容是什麼嗎？

And again, clarify whether the proceeds that you expect from selling the land and the building just exceeds this $8 million to $11 million you're talking about or, the book cost as well of the land and building.

再次澄清您期望出售土地和建築物的收益是否剛好超過您所說的 800 萬至 1100 萬美元，或者土地和建築物的帳面成本。

Yes.

是的。

So, what we have it on the books for is considerably less than what we would expect to sell the building for.

因此，我們帳面上的價格遠低於我們預期出售該建築的價格。

And so, our estimate for the price that we could fetch for the land and building is somewhere around $18 million to $20 million which significantly exceeds the exit cost.

因此，我們估計土地和建築物的價格約為 1800 萬至 2000 萬美元，大大超過了退出成本。

It's, it's more than it's roughly two X the exit cost we expect.

它比我們預期的退出成本大約高出兩倍。

Okay, excellent.

好的，非常好。

And then Jenna or, Rich, could you maybe help us look at the business by vertical market and maybe characterize where the life cycle is of, the majority of the, of the programs within there, whether they're programs that started out NPI and are still ramping up for years to come or if they've been in production for years and maybe are starting, you know, the long tail decline.

然後，Jenna 或 Rich，您能否幫助我們按垂直市場來看待業務，並描述其中大部分項目的生命週期，無論它們是從 NPI 開始的項目，還是從 NPI 開始的項目？ ，或者如果它們已經生產多年，並且可能正在開始，你知道，長尾下降。

Yeah.

是的。

So, do you want me to?

那麼，你想要我這麼做嗎？

Yeah.

是的。

Okay.

好的。

That's an interesting way to look at it.

這是一種有趣的看待方式。

No, he's trying to figure out the portfolio of revenue which I appreciate Mike.

不，他正在嘗試找出收入組合，我很欣賞麥克。

So industrial has the shortest life span and probably the most npis that you're going to see particularly over the next 24 months.

因此，工業產業的生命週期最短，而且可能是您將看到的 npi 最多的產業，尤其是在接下來的 24 個月內。

And then we've got three fairly significant programs ramping in automotive over the next 18 months that are going to actually bring down the average life of that portfolio.

然後，我們在未來 18 個月內在汽車領域推出了三個相當重要的項目，這些項目實際上將縮短該投資組合的平均壽命。

One in Poland, one in China and we announced the breaking program that's coming on in Q3 in Romania.

一項在波蘭，一項在中國，我們宣布了第三季將在羅馬尼亞推出的突破性計畫。

And then in medical.

然後是醫學領域。

Medical has a really nice steady stream of business coming on over time.

隨著時間的推移，醫療產業的業務源源不絕。

And so, the life of that portfolio tends to remain fairly stable in the, you know, 5-to-6-year range.

因此，該投資組合的壽命往往在 5 到 6 年範圍內保持相當穩定。

Okay.

好的。

Thank you, Jane and just one more for me.

謝謝你，簡，再給我一張。

So, I know you've been studying potential adjacencies where you can find new avenues of growth such as, I don't know, the off-highway equipment market.

所以，我知道您一直在研究潛在的鄰近地區，在那裡您可以找到新的成長途徑，例如，我不知道，非公路設備市場。

Was there any tangible progress there or any further?

是否有任何實際進展或進一步進展？

Focus on exactly what you might, what looks promising at this point?

專注於你可能做的事情，目前看起來有希望的事情？

Yeah, we haven't, we haven't disclosed any specific Wins Mike, but the, what I would say is the, as we've sharpened our focus on and again, this isn't all new things, right?

是的，我們還沒有，我們還沒有透露任何具體的勝利邁克，但是，我想說的是，隨著我們一次又一次地加強我們的關注，這不全是新事物，對吧？

I mean, these are areas that we continue to monitor to see, you know, or is this the attractive space that we want to be in such as braking and steering and automotive, which we continue to believe areas like domain controllers, energy storage off highway equipment and particularly auto injectors and medical are those spaces where I guess I would characterize it as our level of discussion and quoting and readiness for investment is very high and we're quite optimistic those obviously take time to ramp up.

我的意思是，這些是我們繼續監控的領域，你知道，或者這是我們想要進入的有吸引力的領域，例如煞車、轉向和汽車，我們仍然相信網域控制器、儲能等領域高速公路設備，特別是自動注射器和醫療領域，我想我會將其描述為我們的討論和報價水平以及投資準備程度非常高，而且我們非常樂觀，這些領域顯然需要時間來提高。

So we don't have any specific win that we can disclose at this point based on our agreements with customers, but we're really pleased with the activity and also the long-term attractiveness of some of those spaces.

因此，根據我們與客戶的協議，我們目前沒有任何具體的勝利可以透露，但我們對這項活動以及其中一些空間的長期吸引力感到非常滿意。

Okay.

好的。

Thank you very much.

非常感謝。

Thank you, Mike.

謝謝你，麥克。

Jason Schmidt, Lake Street.

賈森·施密特，湖街。

Hey guys, thanks for taking my question.

嘿夥計們，謝謝你提出我的問題。

You noted sort of the elevated inventory and auto.

您注意到庫存和汽車增加。

Just curious.

只是好奇。

What sort of visibility you guys have to, that sort of clearing out?

你們需要什麼樣的能見度，那種清理呢？

And how, how should we think about the potential timeline?

我們應該如何考慮潛在的時間表？

It’s a great question, Jason, we, what we do is we drive around, and we see how many closed malls have lots of cars in there as, as holding stations.

這是一個很好的問題，傑森，我們所做的就是開車四處轉轉，我們看到有多少關閉的購物中心裡有很多汽車，就像停靠站一樣。

Now, we, we're obviously in close touch with customers all the time about, you know what they're seeing in demand.

現在，我們顯然一直在與客戶保持密切聯繫，你知道他們的需求是什麼。

We update our demand regularly to your point.

我們會根據您的觀點定期更新我們的需求。

We have seen this sort of inventory glut that, that has persisted for a period of time.

我們已經看到這種庫存過剩已經持續了一段時間。

And so, so we adjust, we see ups and downs, but, you know, I wouldn't say we say, you know, it's a quarter from now.

因此，我們進行調整，我們看到了起起落落，但是，你知道，我不會說我們說，你知道，這是從現在開始的四分之一。

It's two quarters from now when this opens up.

距離開放還有兩個季度。

It's, it's something that we have to monitor and try to get ahead of as best we can and adjust to.

這是我們必須監控並盡力超越並適應的事情。

So, so I don't think we have a clear line of sight to that demand stability, but we're on it.

所以，我認為我們對穩定的需求沒有明確的看法，但我們正在努力。

Okay.

好的。

No, that's, that's more than fair.

不，那是，這再公平不過了。

And how should we think about gross margin trending?

我們該如何看待毛利率趨勢？

Obviously, it's going to be sort of revenue dependent but any help on sort of the trajectory for the remainder of fiscal '25.

顯然，這將在某種程度上取決於收入，但對 25 財年剩餘時間的發展軌跡有任何幫助。

Yeah, Jason, that's a great question.

是的，傑森，這是一個很好的問題。

And it's something that we have.

這是我們所擁有的。

That's where I'm spending the bulk of my time, right?

這就是我花費大部分時間的地方，對嗎？

So, revenue by geographic area and the right sizing and restructuring that we're doing so dependent upon revenue and also dependent on how quickly we can drive the cost out of the facilities.

因此，按地理區域劃分的收入以及我們所做的正確規模和重組取決於收入，也取決於我們能夠以多快的速度降低設施成本。

And the challenge with that is to your previous question, when do we see volumes start to return in the space?

隨之而來的挑戰是你之前的問題，我們什麼時候會看到該領域的交易量開始回歸？

And you know, what's the measured approach of cost containment versus being ready when demand comes back?

您知道，成本控制與需求回升時做好準備的衡量方法是什麼？

So, what I can tell you is, you know, a growth margin of 6.3% is disappointing to everyone.

所以，我可以告訴你的是，你知道，6.3%的成長率讓所有人都感到失望。

It's something that we've been after we had $2.3 million of restructuring costs in the quarter.

在本季我們有 230 萬美元的重組成本之後，我們就一直在這樣做。

Expect restructuring costs in Q2 to be similar to that in terms of right sizing the workforce for the demand that we see.

預計第二季的重組成本將與根據我們所看到的需求調整勞動力規模的成本類似。

And so, I would expect a measured improvement in Q2 and more significant improvement in the back half of the year.

因此，我預期第二季會有明顯改善，下半年會有更顯著的改善。

Okay.

好的。

That's really helpful.

這真的很有幫助。

And then just the last one for me and I'll jump back into Q should we consider September to be the low watermark for the year?

然後是我的最後一個問題，我將跳回問題：我們是否應該認為 9 月是今年的低水位線？

From a revenue perspective?

從收入角度看？

Well, if you look at the guide and I realized I just gave it to you, so you probably can't do math on the fly.

好吧，如果你看了指南，我意識到我剛剛把它給了你，所以你可能無法即時做數學。

We're saying Q2 decline in line with Q1 decline quarter over quarter order, which would indicate that Q2 revenue would be just slightly below Q1 as indicated.

我們說第二季度的下降與第一季環比下降的順序一致，這表明第二季度的收入將略低於第一季度，如圖所示。

And so that would say to me that likely October is probably below water month, and I may have just closed the.

所以這對我來說十月可能是低於水位的月份，我可能剛剛關閉了。

Perfect.

完美的。

Thanks a lot, guys.

非常感謝，夥計們。

Thank you, Jason.

謝謝你，傑森。

(Operator Instructions) Anaya [Sarson], Sidoti

（操作員指示）Anaya [Sarson]，Sidoti

Thank you for taking my question.

感謝您回答我的問題。

Good morning, everyone.

大家早安。

And thank you for taking my questions.

感謝您回答我的問題。

And I just want to clarify when you, you talk about the sequential decline in the second quarter to be on par with the first quarter.

我只是想澄清一下，當您談到第二季度的環比下降與第一季持平時。

Is that by dollar amount.

是用美元金額計算的嗎？

By revenue?

按收入？

Yes, but with improved growth margins.

是的，但成長利潤率有所提高。

Okay.

好的。

Yeah, yeah, I'm an operating margin, right?

是啊，是啊，我是營業利潤，對吧？

And then I'm just curious to follow up on, on the inventory and the auto.

然後我只是好奇地跟進庫存和汽車。

Do you, do you have a lot of inventory there because of the follow up from that program?

由於該計劃的後續行動，您那裡有很多庫存嗎？

And is there any remedy you can get from your customer there or.

您可以從那裡的客戶那裡獲得任何補救措施嗎？

Automotive has the longest lead time of inventory.

汽車的庫存交貨期最長。

And here's why that's challenging.

這就是為什麼這具有挑戰性。

You ordered, you know, 12 months from now and, and remember a year ago, we were ordering 18 months from now and before that, you know, much further out as we were dealing with supply chain challenges.

你知道，從現在起12 個月後訂購，並且記得一年前，我們從現在起18 個月後訂購，在那之前，你知道，當我們應對供應鏈挑戰時，訂購的時間要遠得多。

So, you order and then six months after you've placed the order and the inventory is coming, the demand drops and you get the updated demand from customers.

因此，您訂購了訂單，然後在下訂單六個月後庫存即將到來，需求下降，您從客戶那裡獲得了更新的需求。

And so auto inventory is the most challenging to deal with, right?

因此，汽車庫存是最難處理的，對嗎？

So, what can you cancel?

那麼，你可以取消什麼？

What can you push out to align with the demand that has a six-month lag associated with it?

您可以推出什麼來滿足六個月滯後的需求？

And at the end of the day, you will work with your customers to right size it.

最終，您將與客戶一起調整其大小。

And so, it becomes a timing issue of just that inventory and the corresponding cost of that sitting on your books.

因此，這變成了庫存的時間問題以及帳面上相應成本的問題。

We're getting better at faster demand signals, but we're going to see the impact of it creep up on us over the course of the year.

我們在更快地發出需求訊號方面做得越來越好，但我們將在這一年中看到它對我們的影響逐漸擴大。

We're managing it as effectively as we can though.

我們正在盡可能有效地管理它。

Okay, thank you.

好的，謝謝。

Sorry, I need to just follow up.

抱歉，我需要跟進。

Trick is, you know, you mentioned that the program cancellation, we are certainly working with that tier one customer on, on recovery and how we work through the wind down of that program.

訣竅是，你知道，你提到了計劃的取消，我們當然正在與一級客戶合作，進行恢復以及我們如何完成該計劃的結束。

So yes, but that's still in process.

是的，但這仍在進行中。

And we'll fully recover the inventory.

我們將完全回收庫存。

Okay.

好的。

Thank you.

謝謝。

And that was helpful.

這很有幫助。

And then the $11 million in, in the exit cost.

然後是 1100 萬美元的退出成本。

Is that going to fall more in the back half of the year.

下半年會不會跌更多？

Or we will begin the toe process immediately?

或者我們將立即開始腳趾過程？

And so I will tell you that we've contacted all of the customers we're in process.

所以我會告訴你，我們已經聯繫了我們正在處理的所有客戶。

And so, I would expect to see some of that cost come through in Q2.

因此，我預計部分成本將在第二季實現。

Okay.

好的。

And have you quantified what kind of savings you expect to get from that closure?

您是否量化過您希望從關閉中獲得多少節省？

I expected this.

我預料到了這一點。

Question.

問題。

We have not disclosed the savings.

我們尚未透露節省的費用。

What I can tell you is, you know, when you figure out the depreciation, the indirect labor administrative overhead burden of closing a facility, you will absolutely feel it on the, the consolidated, it would be a meaningful pickup to North America and certainly to the consolidated enterprise.

我可以告訴你的是，你知道，當你計算出折舊、關閉設施的間接人工行政管理費用負擔時，你絕對會在綜合上感受到它，這對北美來說將是一個有意義的回升，當然至合併企業。

If you will be patient with me, I would like to when, when we report Q2, that's when we'll give you more information.

如果您對我有耐心，我希望當我們報告第二季時，我們會向您提供更多資訊。

But as.

但作為。

You would expect the utilization of those other North American facilities that are going to receive transfer will, will improve as a result.

您預計將接收轉移的其他北美設施的利用率將因此而提高。

Yes.

是的。

I understand.

我明白。

And that was all for me.

這就是我的全部。

Thank you.

謝謝。

Thanks Sonya.

謝謝索尼婭。

This concludes our question-and-answer session and does conclude our conference call.

我們的問答環節到此結束，我們的電話會議也結束了。

(Operator Instructions) You may disconnect your lines at this time.

（操作員說明）此時您可以斷開線路。

Thank you.

謝謝。