Kelly Services Inc (KELYB) 2024 Q2 法說會逐字稿

Good morning and welcome to Kelley Services' second quarter earnings conference call. (Operator Instructions) Today's call is being recorded at the request of Kelley Services. (Operator Instructions) I would now like to turn the meeting over to your host, Mr. Peter Quigley, President and CEO. Please go ahead.

早上好，歡迎參加凱利服務公司第二季財報電話會議。（操作員指示）應 Kelley Services 的要求對今天的通話進行錄音。（操作員指示）我現在想將會議轉交給東道主總裁兼執行長 Peter Quigley 先生。請繼續。

Thank you, Greg. Hello, everyone, and welcome to Kelly's second quarter conference call. Before we begin, I'll walk you through our Safe Harbor language. As a reminder, any comments made during this call, including the Q&A, may include forward-looking statements about our expectations for future performance. Actual results could differ materially from those suggested by our comments, and we have no obligation to update the statements made on this call.

謝謝你，格雷格。大家好，歡迎參加凱利第二季電話會議。在開始之前，我將引導您了解我們的安全港語言。提醒一下，本次電話會議期間發表的任何評論（包括問答）可能包含有關我們對未來業績預期的前瞻性陳述。實際結果可能與我們評論中建議的結果有重大差異，我們沒有義務更新本次電話會議中的聲明。

Please refer to our SEC filings for a description of the risk factors that could influence the company's actual future performance. In addition, during the call, certain data will be discussed on a reported and on an adjusted basis. Discussion of items on an adjusted basis, are non-GAAP financial measures designed to give insight into certain trends in our operations. Finally, a presentation with information about Kelly's financial results in the quarter is available on our website.

請參閱我們向 SEC 提交的文件，以了解可能影響公司未來實際業績的風險因素的描述。此外，在電話會議期間，某些數據將在報告和調整的基礎上進行討論。調整後的項目討論是非公認會計準則財務指標，旨在深入了解我們營運的某些趨勢。最後，我們的網站上提供了有關凱利本季財務業績資訊的簡報。

With that, I'll begin with remarks on Kelly's financial results. In the second quarter, we remained focused on what we can control as we continue to navigate uncertain market conditions. Large enterprises maintained a cautious approach to hiring, though demand began to stabilize with positive signs emerging, in particular among our technology and life sciences customers.

首先，我將評論凱利的財務表現。在第二季度，隨著我們繼續應對不確定的市場狀況，我們仍然專注於我們可以控制的事情。儘管需求開始穩定並出現積極跡象，特別是在我們的技術和生命科學客戶中，大型企業對招募仍保持謹慎態度。

In our P&I business, revenues leveled off on a sequential basis. This trend reflects stabilizing demand and the benefits of our enhanced localized delivery model. The combined strength of our network of physical branch locations and the Kelly Now mobile app continue to generate positive momentum in the quarter with both clients and talent helping grow our pipeline of new industrial and commercial staffing business and drive a meaningful improvement to our fill rate and time to GP.

在我們的保賠業務中，收入環比趨於平穩。這一趨勢反映了需求的穩定性以及我們增強的本地化交付模式的好處。我們的實體分支機構網路和 Kelly Now 行動應用程式的綜合實力在本季度繼續產生積極的勢頭，客戶和人才幫助我們擴大了新的工業和商業人力資源業務管道，並推動我們的填充率和去看全科醫生的時間。

At the enterprise level, our strategy to deliver the full suite of Kelly offerings to our largest customers also gained traction. Within the initial focus accounts where we have operationalized this approach, we've improved both the efficiency and effectiveness with which we serve our largest customers. This progress is beginning to drive gains in share of wallet with our large enterprise customers.

在企業層面，我們為最大的客戶提供全套 Kelly 產品的策略也獲得了關注。在我們實施這種方法的最初重點客戶中，我們提高了為最大客戶提供服務的效率和有效性。這項進展開始推動我們大型企業客戶錢包份額的成長。

Our growth initiatives are helping capture market share and build upon Kelly's position as one of the largest staffing firms in the US. According to staffing industry analysts' latest rankings, Kelly increased its position by the widest margin among the top 20 firms from 2022 to 2023. This is a testament to our team's resilience in deftly navigating through uncertain market conditions.

我們的成長計劃正在幫助佔領市場份額並鞏固凱利作為美國最大的人力資源公司之一的地位。根據人力資源產業分析師的最新排名，凱利在 2022 年至 2023 年的前 20 名公司中排名上升幅度最大。這證明了我們團隊在不確定的市場條件下靈活應對的能力。

Amid encouraging developments with growth, we remain laser focused on improving our ability to convert a greater share of top line growth to bottom line growth. This month marks one year since we shared with you the anticipated impact of the transformation initiatives we undertook to drive structural efficiencies across Kelly and significantly improve the company's profitability.

在令人鼓舞的成長中，我們仍然專注於提高我們將更大份額的收入成長轉化為利潤成長的能力。本月是我們與您分享我們為提高凱利的結構效率並顯著提高公司盈利能力而採取的轉型舉措的預期影響一周年。

Our message at that time was clear. Kelly would achieve a normalized adjusted EBITDA margin in the range of 3.3% to 3.5% as soon as the first half of 2024. Notwithstanding the challenging market conditions, we delivered a steady cadence of net margin expansion driven by sustained reductions to SG&A.

我們當時的訊息很明確。凱利最快將於 2024 年上半年達到 3.3% 至 3.5% 的正常化調整後 EBITDA 利潤率。儘管市場環境充滿挑戰，但在銷售管理及行政費用持續減少的推動下，我們實現了淨利潤率的穩定成長。

One year later, I'm pleased to share that we have achieved our initial expectations. In the first half of this year, Kelly attained an adjusted EBITDA margin of 3.4%, excluding the benefit of our acquisition of MRP. For more details on this and our results in the second quarter, I'll turn the call over to our Chief Financial Officer, Olivier Thirot.

一年後，我很高興地告訴大家，我們已經實現了最初的期望。今年上半年，Kelly 的調整後 EBITDA 利潤率為 3.4%，不包括我們收購 MRP 帶來的收益。有關此問題以及我們第二季度業績的更多詳細信息，我會將電話轉給我們的首席財務官 Olivier Thirot。

Thank you, Peter, and good morning, everybody. As a reminder, Kelly's 2023 results include the European staffing business that was sold on January 2, 2024, and we are now including the results of Motion Recruitment Partners since the date of the acquisition, so just for the month of June 2024 this quarter. To provide greater visibility to trends in our operating results, I will also discuss year-over-year changes on a reported and also on an organic basis.

謝謝你，彼得，大家早安。提醒一下，Kelly 的 2023 年業績包括 2024 年 1 月 2 日出售的歐洲人力資源業務，我們現在包括自收購之日起 Motion Recruitment Partners 的業績，因此本季度僅包括 2024 年 6 月的業績。為了更了解我們經營績效的趨勢，我還將在報告和有機的基礎上討論逐年變化。

References to organic information exclude the results of our European staffing business in 2023 and the impact of the acquisition of MRP in 2024. Revenue for the second quarter of 2024 totaled $1.06 billion, compared to $1.22 billion in 2023, down 13.1%, resulting primarily from the sale of our European staffing business, partially offset by the acquisition of MRP.

對有機資訊的引用不包括我們 2023 年歐洲人力資源業務的結果以及 2024 年收購 MRP 的影響。2024 年第二季的營收總計 10.6 億美元，較 2023 年的 12.2 億美元下降 13.1%，這主要是由於出售了我們的歐洲人力資源業務，部分被收購 MRP 所抵銷。

On an organic basis, year-over-year revenue improved 0.6% in the quarter, reflecting strong growth in education, a sequential stabilization of demand from Q1 to Q2 across much of our other businesses, despite of market uncertainty in several specialties.

從有機角度來看，本季營收年增 0.6%，反映出教育領域的強勁成長，以及我們許多其他業務從第一季到第二季的需求連續穩定，儘管多個專業市場存在不確定性。

Reviewing results by segment, education continued to grow revenue by double-digit, up 22% year over year in the quarter. This strong and sustained growth reflects net new customer wins, increased demand from existing customers and an improving fill rate.

按細分領域查看業績，教育產業收入持續以兩位數成長，本季年增 22%。這種強勁而持續的成長反映了淨新客戶的贏得、現有客戶需求的增加以及填充率的提高。

In the SET segment, revenue was up 10% on a reported basis, which includes the impact of the MRP acquisition. Revenue was down 3% on an organic basis and organic revenue trends were stable sequentially. Year-over-year organic revenue growth reflects lower staffing market demand with revenue down 4% in our staffing specialties and down 1% in our outcome-based business, permanent placement fees also declined by 20%.

在 SET 領域，營收按報告成長了 10%，其中包括 MRP 收購的影響。有機收入下降 3%，有機收入趨勢穩定。年比有機收入成長反映了人力資源市場需求的下降，我們的人力資源專業收入下降了 4%，基於結果的業務收入下降了 1%，永久安置費也下降了 20%。

In our OCG segment, revenue improved 3%. The increase in revenues was driven by our PPO specialty, where demand growth has continued. Year-over-year declines in RPO are due to slower hiring in certain market sectors and MSP revenues declined in line with customers' contingent labor demands. But revenue in both MSP and RPO products were stable sequentially and with our MSP product positioned to benefit from positive momentum going forward.

在我們的 OCG 部門，營收成長了 3%。收入的成長是由我們的 PPO 專業推動的，該專業的需求持續成長。RPO 年減是由於某些市場領域的招聘放緩以及 MSP 收入因客戶的或有勞動力需求而下降。但 MSP 和 RPO 產品的收入連續穩定，並且我們的 MSP 產品將受益於未來的積極勢頭。

Revenue in our professional and industrial segment declined 9% year over year in the quarter but also stabilized sequentially, including in the P&I staffing specialty. Revenue from our staffing product declined 9%. The segment's contact center outcome-based specialty revenue also declined year over year as did perm fees in this segment.

本季我們專業和工業部門的營收年減 9%，但也連續穩定，包括 P&I 人員配備專業部門。我們的人力資源產品收入下降了 9%。該部門的聯絡中心基於結果的專業收入也同比下降，該部門的燙髮費也是如此。

Partially offsetting these declines, other higher-margin outcome-based specialty revenue continued to grow. Overall gross profit was an 11.2% as reported or 4.3% on an organic basis. Our gross profit rate was 20.2%, compared to 19.8% in the second quarter of the prior year. Our GP rate reflects a 100-basis-point improvement from the sale of our European staffing operations and an additional 40 basis points from the inclusion of the June results of MRP.

其他利潤較高的基於成果的專業收入繼續增長，部分抵消了這些下降。據報告，整體毛利為 11.2%，有機利潤為 4.3%。我們的毛利率為 20.2%，而去年第二季為 19.8%。我們的 GP 比率反映了因出售歐洲員工業務而提高了 100 個基點，並因納入 6 月的 MRP 結果而額外提高了 40 個基點。

On an organic basis, the GP rate declined 100 basis points in Q2, 110 basis points due to unfavorable business mix and 20 basis points due to lower perm fees, partially offset by 30 basis points of favorable employee-related costs. The business mix impact reflects continued growth in specialties with lower GP rates, including education and PPO.

從有機角度來看，第二季度的GP 率下降了100 個基點，其中110 個基點是由於不利的業務組合而下降了110 個基點，20 個基點是由於較低的Perm 費用，部分被有利的員工相關成本30 個基點所抵銷。業務組合的影響反映了 GP 率較低的專業的持續成長，包括教育和 PPO。

SG&A expenses were down 17% year over year on a reported basis. Expenses for the second quarter of 2024 include $4.3 million of restructuring charges related to our ongoing transformation efforts, as well as $1.6 million of expenses primarily related to the sale of our European staffing operations, including transaction and also transition expenses.

據報告，SG&A 費用年減 17%。2024 年第二季的費用包括與我們正在進行的轉型工作相關的 430 萬美元的重組費用，以及主要與出售我們的歐洲員工業務相關的 160 萬美元的費用，包括交易費用和過渡費用。

SG&A expenses in 2023 include $5.6 million of restructuring charges. So expenses declined by 18% on an adjusted basis or 10% on an adjusted organic basis. So like for like, expenses were lower in Q2 of 2024 due to the positive impacts of our structural transformation efforts, as well as lower performance incentive conversation expenses, reflecting current top-line trends.

2023 年的 SG&A 支出包括 560 萬美元的重組費用。因此，調整後的費用下降了 18%，調整後的有機費用下降了 10%。因此，由於我們結構轉型工作的正面影響以及績效激勵談話費用的降低，2024 年第二季的費用較低，反映了當前的營收趨勢。

As a reminder, beginning in the first quarter of 2024, we are reporting the operating results of our reportable segments utilizing revised business unit profit measures. We also are allocating a greater share of the costs we have previously reported as corporate costs to our business units.

提醒一下，從 2024 年第一季開始，我們將利用修訂後的業務部門利潤指標來報告可報告部門的營運績效。我們也將先前報告為企業成本的成本的更大份額分配給我們的業務部門。

In addition, we are no longer including depreciation and amortization in our business unit profit measures. We believe this provides greater visibility into the financial performance of each business unit and how they contribute to Kelly's overall performance.

此外，我們不再將折舊和攤提納入我們業務部門的利潤指標中。我們相信，這可以讓我們更清楚地了解每個業務部門的財務表現以及它們對凱利整體表現的貢獻。

On a consolidated basis, our reported earnings from operations in the second quarter were $12.2 million, compared to $6.2 million in Q2 of 2023. On an adjusted basis, Q2 2024 earnings from operations were $28.1 million, nearly doubled from a year ago.

綜合來看，我們第二季報告的營運利潤為 1,220 萬美元，而 2023 年第二季為 620 萬美元。經調整後，2024 年第二季營運利潤為 2,810 萬美元，比一年前成長近一倍。

The $15.9 million increase from reported earnings includes a loss on the sale of our European staffing operations, charges related to transformation actions and the sale of our European staffing operations, an impairment charge related to excess lease property, and a gain on the sale of assets related to the Ayers Group.

報告收益增加 1590 萬美元，包括出售歐洲人員業務的損失、與轉型行動和出售歐洲人員業務相關的費用、與超額租賃財產相關的減值費用以及出售資產的收益與艾爾斯集團有關。

The acquisition of MRP added $1.5 million of earnings from operations in the second quarter of 2024. Adjusted earnings in the second quarter of 2023 were $14.2 million. The $8 million increase from reported earnings included transformation related charges and an asset impairment charge. The European staffing operations produced $1 million of earnings from operations on an adjusted basis in the second quarter of 2023.

收購 MRP 為 2024 年第二季增加了 150 萬美元的營運利潤。2023 年第二季調整後收益為 1,420 萬美元。報告收益增加 800 萬美元，其中包括轉型相關費用和資產減損費用。2023 年第二季度，經調整後，歐洲人力資源業務產生了 100 萬美元的營運收入。

Adjusted EBITDA margin also improved 180 basis points to 3.8%, reflecting 40 basis points of improvement from the sale of our European staffing operations, 10 basis points from the inclusion of the month of June result of MRP and 130 basis points of improvement from our ongoing transformation efforts. Income tax expense for the second quarter was $1.1 million, compared to a benefit of $1.9 million in 2023. Our effective income tax rate was 19.4% in Q2 2024.

調整後的EBITDA 利潤率也提高了180 個基點，達到3.8%，反映出我們出售歐洲員工業務提高了40 個基點，納入6 月份MRP 業績提高了10 個基點，以及我們正在進行的業務提高了130個基點。第二季的所得稅費用為 110 萬美元，而 2023 年的收益為 190 萬美元。2024 年第二季我們的有效所得稅率為 19.4%。

And finally, reported earnings per share for the second quarter was $0.12 per share, compared to $0.20 in 2023. Earnings per share in 2024 include a loss related to the sale of our European staffing operations and a gain on the sale of the Ayers Group transaction, as well as transaction costs related to the acquisition of MRP, restructuring charges related to our transformation, and an asset impairment charge.

最後，第二季報告的每股收益為 0.12 美元，而 2023 年為 0.20 美元。2024 年每股收益包括與出售我們的歐洲員工業務相關的虧損和出售 Ayers Group 交易的收益，以及與收購 MRP 相關的交易成本、與我們轉型相關的重組費用以及資產減損費用。

Earnings per share in 2023 include a restructuring and an asset impairment charge. So on an adjusted basis, Q2 2024 EPS was $0.71, compared to $0.36 per share in Q2 of 2023, nearly doubling year over year.

2023 年每股收益包括重組和資產減損費用。因此，調整後的 2024 年第二季每股收益為 0.71 美元，而 2023 年第二季每股收益為 0.36 美元，比去年同期幾乎翻倍。

Now reflecting on the balance sheet. Following the acquisition of MRP at quarter end, cash totaled $38 million and we had $210 million of debt outstanding. Our debt to capital ratio is 14.1% as of quarter end, as we leverage our balance sheet to acquire MRP.

現在反映在資產負債表上。季度末收購 MRP 後，我們的現金總額為 3,800 萬美元，未償債務為 2.1 億美元。截至季末，我們的負債與資本比率為 14.1%，因為我們利用資產負債表來收購 MRP。

And as we disclosed at the time of the acquisition, we have amended our credit facilities to maintain the financial flexibility for additional organic and inorganic investment, and to navigate an ongoing uncertain market environment.

正如我們在收購時所揭露的那樣，我們修改了信貸安排，以保持額外有機和無機投資的財務靈活性，並應對持續不確定的市場環境。

At quarter end, accounts receivable totaled $1.2 billion, including the receivables of MRP. Global DSO was 57 days, down two days from year end 2023, and down four days from the second quarter of 2023. In the quarter, we generated $55 million of free cash flow, compared to $32 million in the comparable prior year period.

季末，應收帳款總計12億美元，其中包括MRP應收帳款。全球 DSO 為 57 天，比 2023 年底減少了兩天，比 2023 年第二季減少了四天。本季度，我們產生了 5,500 萬美元的自由現金流，而去年同期為 3,200 萬美元。

Looking ahead to operating results for the second half of the year, our results will be impacted by several factors. First, we believe that staffing market conditions will remain relatively consistent with what we have experienced in the first half of the year and modest sequential revenue improvement in our P&I, SET, and OCG segments will continue in the second half of 2024. Our education segment revenue will be impacted by summer school holiday period in Q3, but will continue to produce double-digit revenues.

展望下半年的經營業績，我們的業績將受到多種因素的影響。首先，我們認為，人員配置市場狀況將與我們上半年經歷的情況保持相對一致，並且我們的 P&I、SET 和 OCG 部門的收入將在 2024 年下半年繼續適度改善。我們的教育部門收入將受到第三季暑期學校假期的影響，但將繼續產生兩位數的收入。

And finally, the acquisition of MRP will deliver further improvement in both our growth and also value metrics. For the second half of 2024, on an organic basis, we expect revenue to be up 2.5% to 3.5%, with no significant FX impact, resulting in a midpoint revenue expectation of about $2 billion. In addition, we expect MRP to add an additional $260 million to $270 million of revenue in the second half of the year.

最後，收購 MRP 將進一步改善我們的成長和價值指標。在有機基礎上，我們預計 2024 年下半年營收將成長 2.5% 至 3.5%，匯率不會產生重大影響，因此營收預期中位數約為 20 億美元。此外，我們預計下半年 MRP 收入將額外增加 2.6 億至 2.7 億美元。

We expect our organic GP rate to be between 20% to 20.2% in the second half. On the like-for-like basis, this is a 90 basis point decline at the midpoint of our range, reflecting the change in our business mix, primarily because of education.

我們預計下半年有機毛利率將在 20% 至 20.2% 之間。在同類基礎上，這是我們範圍中點的 90 個基點下降，反映了我們業務組合的變化，主要是由於教育。

Our education business is expected to continue to deliver significant revenue growth. MRP, with its higher margin specialty profile, is expected to add an additional 100 basis points to our gross margin rate in the second half of the year. So our all-in GP rate in the second half of 2024 is expected to be between 21% to 21.2%.

我們的教育業務預計將繼續帶來顯著的收入成長。MRP 憑藉其較高的利潤率專業配置，預計下半年我們的毛利率將再增加 100 個基點。因此，我們預計 2024 年下半年的總 GP 率將在 21% 至 21.2% 之間。

Reflecting on SG&A, we expect to sustain the efficiency improvements that we gained from our transformation-related actions over the past year. The impact on year-over-year trends will moderate, as we anniversary the execution of most of those actions.

考慮到 SG&A，我們希望能夠維持過去一年從轉型相關行動中獲得的效率改善。隨著我們慶祝大多數這些行動的執行週年紀念，對同比趨勢的影響將會減弱。

We expect that adjusted SG&A, excluding D&A, will be 3.5% to 4.5% lower than a year ago on an organic basis and MRP will add about $60 million of expenses in the second half. All-in, we expect approximately $28 million of depreciation and amortization in H2 of 2024.

我們預計，調整後的 SG&A（不包括 D&A）將比一年前有機下降 3.5% 至 4.5%，而 MRP 將在下半年增加約 6,000 萬美元的費用。總而言之，我們預計 2024 年下半年的折舊和攤提約為 2,800 萬美元。

We expect an adjusted organic EBITDA margin of 3.2% to 3.3%, up 30 basis points to 40 basis points year over year. And we believe that MRP will add an additional 30 basis points of net margin in the second half of 2024.

我們預期調整後的有機 EBITDA 利潤率為 3.2% 至 3.3%，較去年同期上升 30 個基點至 40 個基點。我們認為，MRP 將在 2024 年下半年使淨利潤率額外增加 30 個基點。

And back to my earlier points regarding education seasonality, we expect that our adjusted EBITDA margin will be closer to 3% or 2.6% organic in the third quarter during the school summer holiday period and then improve as in Q4 as education's working days increase. And finally, we expect our effective tax rate to be in the low-teens. And now back to you, Peter.

回到我之前關於教育季節性的觀點，我們預計第三季度學校暑假期間調整後的EBITDA 有機利潤率將接近3% 或2.6%，然後隨著教育工作日的增加而在第四季度有所改善。最後，我們預計我們的有效稅率將在十幾歲以下。現在回到你身上，彼得。

Thanks for those insights, Olivier. In May, I shared with you that 2024 would mark an inflection point on our strategic journey. That the actions and results we deliver this year will propel Kelly into a new era of growth. Reflecting on the significant progress we achieved in the second quarter, I'm confident that we're on track to realize those ambitions.

感謝您的見解，奧利維爾。今年 5 月，我曾與大家分享過，2024 年將標誌著我們策略之旅的轉捩點。我們今年的行動和成果將推動凱利進入一個新的成長時代。回顧我們在第二季度取得的重大進展，我相信我們正在實現這些雄心壯志。

Our transformational acquisition of Motion Recruitment Partners has strengthened the scale and capabilities of Kelly's staffing, consulting, and RPO solutions in attractive customer end markets, including technology, financial services and healthcare.

我們對 Motion Recruitment Partners 的轉型收購增強了 Kelly 在有吸引力的客戶終端市場（包括技術、金融服務和醫療保健）的人員配備、諮詢和 RPO 解決方案的規模和能力。

The highly complementary nature of MRP and Kelly's SET and OCG businesses, MRP's attractive financial profile and its leadership team of recruiting industry veterans will contribute in a significant way to enhancing Kelly's revenue growth potential and driving continued EBITDA margin expansion.

MRP 和 Kelly 的 SET 和 OCG 業務的高度互補性、MRP 有吸引力的財務狀況及其招聘行業資深人士的領導團隊將為增強 Kelly 的收入增長潛力並推動 EBITDA 利潤率持續擴張做出重大貢獻。

The sale of Ayers Group further sharpened Kelly OCG's focus on global RPO and MSP solutions, while unlocking incremental capital to redeploy towards Kelly's specialty strategy. And we achieved our initial expectation for EBITDA margin expansion, which we established one year ago, demonstrating the capacity of our growth and efficiency initiatives to significantly improve Kelly's profitability over the long term.

Ayers Group 的出售進一步強化了 Kelly OCG 對全球 RPO 和 MSP 解決方案的關注，同時釋放增量資本以重新部署 Kelly 的專業策略。我們實現了一年前對 EBITDA 利潤率擴張的最初預期，這證明了我們的成長和效率舉措有能力顯著提高凱利的長期獲利能力。

Of course, it's difficult to know the precise timeline of a recovery for our industry. And as Olivier noted, we expect the results in the second half of the year will continue to reflect uncertain market conditions. Notwithstanding these dynamics, I'm optimistic about the sequential stabilization we saw across our business and I'm confident that our achievements in the second quarter, together with the progress we've delivered since we embarked on our specialty growth journey, position Kelly to capitalize when sequential stabilization gives way to a sustained increase in demand.

當然，很難知道我們行業復甦的確切時間表。正如奧利維爾指出的那樣，我們預計下半年的業績將繼續反映不確定的市場狀況。儘管存在這些動態，我對我們整個業務的連續穩定感到樂觀，我相信我們在第二季度取得的成就，以及我們自踏上專業增長之旅以來所取得的進展，使凱利能夠當連續穩定讓位於需求持續成長時進行資本化。

I'm immensely proud of the work of each and every member of Team Kelly, including our newest colleagues at MRP that has brought us to this point in our journey. Their urgency, agility, and unwavering commitment to our clients and talent are the driving forces that continue to propel us to new heights. With our team moving forward together, united by our noble purpose, I'm confident that the opportunities before us are limitless. Greg, you can now open the call to questions.

我對凱利團隊每一位成員的工作感到非常自豪，包括 MRP 的新同事，正是他們讓我們走到了這一步。他們的緊迫感、敏捷性以及對客戶和人才堅定不移的承諾是繼續推動我們達到新高度的動力。隨著我們的團隊共同前進，團結在我們崇高的目標下，我相信我們面前的機會是無限的。格雷格，您現在可以開始提問。

(Operator Instructions) Kartik Mehta, Northcoast Research.

（操作員說明）Kartik Mehta，Northcoast Research。

Olivier, first of all, it's been a pleasure working with you and I wish you the best. You have some big shoes to fill, so thank you for everything.

Olivier，首先，很高興與您合作，祝您一切順利。你有一些重要的事情要填補，所以感謝你所做的一切。

Thank you, Kartik. Thank you very much.

謝謝你，卡蒂克。非常感謝。

You're welcome. I'm wondering if we could focus on the MRP business for a second. And just as you look at the fundamentals for that business, maybe so far in the second quarter, and you do look at your outlook in the second half, and you compare it to a year ago or maybe a quarter ago, what's been the trend for that business?

不客氣。我想知道我們是否可以暫時關註一下 MRP 業務。正如您查看該業務的基本面一樣，也許到目前為止是第二季度，您確實查看了下半年的前景，並將其與一年前或一個季度前進行比較，趨勢是什麼為了那個生意？

Yeah. I will comment on a few numbers, and Peter can add more color on business trends and so on. You might have seen, Kartik, that we have issued the so-called 8-K/A, and of course, the outlook of today, and you are going to see further information in our 10-Q on what we call pro forma. If you use this information, you will see that H1 of 2024, the revenue was about $260 million, and if you take the mid-range of our guidance today, you are going to be at $265 million.

是的。我將對一些數字進行評論，彼得可以在商業趨勢等方面添加更多色彩。Kartik，您可能已經看到，我們已經發布了所謂的 8-K/A，當然還有今天的展望，您將在我們的 10-Q 中看到有關我們所謂的預計的更多信息。如果您使用此訊息，您會看到 2024 年上半年的收入約為 2.6 億美元，如果您採用我們今天指導的中位數，則收入將為 2.65 億美元。

So we expect, similar to what we have said for Kelly organic, basically a slight improvement, basically, in the second half of the year. When you look at how does it compare versus a year ago, H1 at $260 million is about minus 8% versus a prior year, which is consistent with the trends we have shared in June when we are talking specifically about MRP and we expect based on the change in comparables and a little bit of sequential improvement to turn H2 into flat to minus 1%, minus 1.5% versus a year ago.

因此，我們預計，類似於我們對凱利有機所說的，基本上會在今年下半年略有改善。當你看看與一年前相比如何時，上半年為 2.6 億美元，與前一年相比約為負 8%，這與我們在 6 月份專門談論 MRP 時分享的趨勢一致，並且我們基於可比較數據的變化和一點點的連續改善使下半年持平至-1%，與一年前相比為-1.5%。

And Kartik, longer term, I mean, we continue to be very bullish on MRP in particular, but also the space that they are in, both on the staffing and solution side, as well as on the RPO side. We have been very pleased with the partnership we have had with the MRP leadership to date and the significant complementary nature of our businesses, the lack of significant customer overlap, complementary delivery models. So longer term, we are still very optimistic about the investment thesis in making the acquisition of MRP.

Kartik，從長遠來看，我的意思是，我們繼續非常看好 MRP，特別是他們所處的空間，無論是在人員配置和解決方案方面，還是在 RPO 方面。我們對迄今為止與 MRP 領導層的合作夥伴關係以及我們業務的顯著互補性、缺乏顯著的客戶重疊、互補的交付模式感到非常滿意。因此，從長遠來看，我們對收購MRP的投資論點仍然非常樂觀。

And then as you just look at the overall business, maybe in each of the segments, I am wondering what you are witnessing in terms of pricing. Have pricing trends or competition increased in any of the segments or are they kind of where they were last quarter?

然後，當您查看整體業務時，也許在每個細分市場中，我想知道您在定價方面看到了什麼。任何細分市場的定價趨勢或競爭是否增加，或與上季相同？

Well, I think, in this kind of uncertain environment, market conditions, you are always going to find outlier suppliers that are going to try to buy share, but it is not across the board. It is not an industry dynamic that we are seeing. In fact, we have been relatively pleased with our ability to maintain pricing discipline during these market conditions.

嗯，我認為，在這種不確定的環境和市場條件下，你總是會發現異常供應商試圖購買份額，但並不是全面的。這不是我們所看到的產業動態。事實上，我們對在這些市場條件下維持定價紀律的能力感到相對滿意。

Yeah. Just when you look at the so-called spread, in P&I it is completely stable; in SET, flat to up, slightly; in education, a little bit down, but it is more the customer mix than real pricing conversation. So far, and it is not an isolated quarter, Q2 of this year, we have not seen any change or any pressure on spreads. We continue to see that we are capable of keeping our spread, thus keeping our overall margin.

是的。就當你看一下所謂的點差時，在保賠險中它是完全穩定的；在SET中，從平到上，稍微；在教育領域，有點下降，但更多的是客戶組合而不是真正的定價對話。到目前為止，今年第二季度並不是一個孤立的季度，我們沒有看到利差有任何變化或壓力。我們繼續看到我們有能力保持我們的價差，從而保持我們的整體利潤率。

And then just one last question, as you go down this transformation journey, and obviously, MRP will help, as you look for the next acquisition, is it not that you would like to integrate MRP, so you would wait or if an opportunity turned up, you are at a point where you could do another acquisition?

最後一個問題，當你走上這個轉型之旅時，顯然，當你尋找下一次收購時，MRP 會有所幫助，是不是你想整合 MRP，所以你會等待，或者如果機會轉向向上，您現在可以進行另一次收購了嗎？

Well, I think, as we have said, MRP is going to continue to deliver its services and solutions through its operating companies and under its current brand. We will, of course, be working with the MRP leadership on where it makes sense integration. I think our focus right now is on that as a priority, but we are not going to stand on the sidelines in terms of developing a pipeline for future acquisitions.

嗯，我認為，正如我們所說，MRP 將繼續透過其經營公司並以其當前的品牌提供其服務和解決方案。當然，我們將與 MRP 領導階層合作，探討整合的意義。我認為我們現在的重點是作為優先事項，但我們不會在為未來收購開發管道方面袖手旁觀。

The cycle time is, as you know, Kartik, quite long. So we are preparing for the time when it would make sense for us to deploy additional capital in pursuit of high-margin, high-growth businesses, as I have said before, primarily in the science, engineering, technology, and telecom space, or in our education practice.

如你所知，Kartik，週期時間相當長。因此，正如我之前所說，我們正在準備部署額外資本以追求高利潤、高成長業務的時機，主要是在科學、工程、技術和電信領域，或在我們的教育實踐中。

Kevin Steinke, Barrington Research. Please go ahead.

凱文‧史坦克，巴靈頓研究中心。請繼續。

Good morning. I want to start off by asking about generating some modest organic growth in the second quarter. It sounded like you were pleased with the progress of the organic growth initiatives that are part of the transformation effort. Would you attribute the return to organic growth as really being driven by those transformation-related organic growth initiatives?

早安.首先，我想詢問第二季是否會產生一些適度的有機成長。聽起來您對作為轉型工作一部分的有機成長計劃的進展感到滿意。您是否認為有機成長的回報實際上是由那些與轉型相關的有機成長舉措所推動的？

Yeah. I think so, Kevin. It is hard to pin it down precisely, but relative to what we are seeing from our competitors, we believe we are taking share across our businesses and we spent a good portion of 2023 focused on efficiency.

是的。我想是的，凱文。很難準確地確定這一點，但相對於我們從競爭對手那裡看到的情況，我們相信我們正在整個業務中佔據份額，並且我們在 2023 年的大部分時間裡都專注於效率。

But, as I said at the beginning of the year, we were pivoting and turning our attention to growth. I think the progress we have made in our omnichannel strategy and professional and industrial is beginning to show results and our focus on taking share within our large enterprise customers is also showing traction. And I think the combination of those two, plus obviously the continued growth in education and a focus on high margin and areas that are a little bit more stable, and we are pleased with the organic growth in the quarter.

但是，正如我在今年年初所說的那樣，我們正在轉向並將注意力轉向成長。我認為我們在全通路策略以及專業和工業方面的進展已經開始顯現成效，我們對在大型企業客戶中佔據份額的關注也顯示出了吸引力。我認為這兩者的結合，加上教育領域的持續增長以及對高利潤率和稍微穩定的領域的關注，我們對本季度的有機增長感到滿意。

Okay, good. And just related to that question, when we think about your forecast for organic revenue growth of 2.5% to 3.5% in the second half of 2024, you talked about assuming kind of a similar demand environment in the second half relative to what you have been seeing recently, but also you mentioned some stabilization and demand, some improvement in technology and life sciences.

好的，很好。與這個問題相關的是，當我們考慮您對 2024 年下半年有機收入增長 2.5% 至 3.5% 的預測時，您談到假設下半年的需求環境與您的情況類似最近看到，但您也提到了一些穩定和需求，以及技術和生命科學的一些改進。

I am just trying to unpack how you get to that higher rate of organic growth in the second half if it is driven by the organic growth initiatives or assuming some sort of continued improvement or stabilization in just the overall demand environment to get to that growth and also the sequential improvements you mentioned you expect in P&I, SET, and OCG?

我只是想解釋如何在下半年實現更高的有機成長率，如果它是由有機成長舉措推動的，或者假設整體需求環境持續改善或穩定以實現成長，還有您提到的您期望P&I、SET 和OCG 方面的持續改進嗎？

Yeah. I mean, I am going to start and then Peter will add some color on the business side and so on. If you think about it, first of all, we did confirm today that we see education continuing to grow at double-digit rate. Of course, Q3 is low seasonality, but we see the dynamic we have seen for a long, long time continuing, so that's one point.

是的。我的意思是，我要開始，然後彼得會在業務方面添加一些色彩等等。如果你想一想，首先，我們今天確實確認，我們看到教育繼續以兩位數的速度成長。當然，第三季的季節性較低，但我們看到很長一段時間以來的動態仍在持續，所以這是一點。

Second point is, when you put on the side education sequentially from Q1 to Q2, excluding education, the rest of the business sequentially went up by about 1.5%. We expect similar modest improvements sequentially over the second half of the year. That is basically based on what we have seen sequentially from Q1 to Q2.

第二點是，當你從第一季到第二季依序計入教育業務時，排除教育業務，其餘業務依序成長了約1.5%。我們預計下半年將出現類似的適度改善。這基本上是基於我們從第一季到第二季所看到的情況。

Some areas it is more stabilization like, for instance, P&I staffing. Others it is really sequential growth and I am thinking about OCG and to some extent SET. We start to see some positive dynamics, as Peter was saying, in our legacy IT business and also science that are moving up.

有些領域較穩定，例如保賠人員配置。其他方面確實是連續成長，我正在考慮 OCG 以及某種程度上的 SET。正如 Peter 所說，我們開始在我們的傳統 IT 業務和正在發展的科學領域中看到一些積極的動態。

And on top of that, of course, the growth initiatives that Peter was mentioning, that are part of this sequential improvement of 1.5% I was mentioning from Q1 to Q2 when you exclude education. And there is also the base impact, right, I mean, the 2.5% to 3.5% is also basically reflecting on the fact that our comparables are basically lower in H2 of 2023 than they were in the first half of this year.

當然，最重要的是，彼得提到的成長計畫是我提到的從第一季到第二季（當您排除教育因素時）1.5% 的連續成長的一部分。還有基數影響，對吧，我的意思是，2.5%到3.5%也基本上反映了這樣一個事實，即我們2023年下半年的可比較數據基本上低於今年上半年。

And Kevin, as I mentioned in my prepared remarks, we don't know when there will be a return to a more normalized demand, but we are much better positioned to take advantage of that. And we are prepared to take advantage of it when it happens than we were a couple of years ago just because of all the steps we have taken to structurally improve the cost base and to be able to leverage when demand returns in a meaningful way.

凱文，正如我在準備好的發言中提到的，我們不知道什麼時候需求會恢復到更正常化的狀態，但我們更有能力利用這一點。與幾年前相比，我們已經準備好在這種情況發生時利用它，因為我們已經採取了所有步驟來結構性地改善成本基礎，並能夠在需求以有意義的方式回歸時利用它。

But we are not waiting for that, which is why I focused on the growth initiatives that I mentioned. We turned to in earnest at the beginning of the year and we will continue to lean into those growth initiatives, notwithstanding the external market conditions.

但我們不會等待這一點，這就是為什麼我專注於我提到的成長計劃。無論外部市場條件如何，我們在年初都認真對待這些成長舉措，並將繼續致力於這些成長舉措。

Okay, great. I also want to ask about the trend in adjusted SG&A expenses. You mentioned you expect them to be down organically 3.5% to 4.5% year over year. Just trying to think about, on a sequential basis as we move into the second half of the year, how those will trend organically. If we should think about those kind of being flattish sequentially, excluding MRP or if they come down a little bit more.

好的，太好了。我也想問一下調整後的 SG&A 費用的趨勢。您提到您預計它們將年比有機下降 3.5% 至 4.5%。只是試著思考，當我們進入今年下半年時，這些將如何有機地發展。我們是否應該考慮這些連續的平坦情況，不包括MRP，或者它們是否會下降一點。

I would really continue to look at organic, meaning excluding our European staffing business and MRP. I think we gave today some specific around MRP expectation for SG&A, excluding D&A by the way, for the second half of the year. So if you think about a Q2 trend, if you go really on the adjusted organic, we are at about minus 10% like for like in Q2 versus a year ago. In Q1 we are at minus 11%, so very similar trend in the second quarter than in the first quarter.

我真的會繼續關注有機，這意味著排除我們的歐洲人員配置業務和 MRP。我認為我們今天給出了下半年 SG&A 的 MRP 預期的一些具體信息，順便說一下，不包括 D&A。因此，如果你考慮第二季的趨勢，如果你真正進行調整後的有機成長，那麼第二季與一年前相比，我們的成長率約為負 10%。第一季的成長率為負 11%，因此第二季的趨勢與第一季非常相似。

When we move to our guidance that you are mentioning for the second half, of course, the comparables are becoming more challenging, right, because a good portion of our efficiency initiative was already visible in the second half of the year.

當然，當我們轉向您提到的下半年指導時，可比性變得更具挑戰性，對吧，因為我們的效率計劃的很大一部分已經在今年下半年顯現出來。

So this is why we go for this adjusted guidance. But if you think about it more sequentially, you will see that it's basically flat sequentially from first half to second half or if you look at Q2 to Q3 and Q4. Yes, that's our expectation and this is where we are trending now.

這就是我們尋求調整後的指導的原因。但如果你更仔細地考慮一下，你會發現從上半場到下半年，或者如果你看第二季度到第三季度和第四季度，它基本上是持平的。是的，這是我們的期望，也是我們現在的趨勢。

Okay. Thank you, Olivier. That is very helpful. And I also wanted to add my congratulations and best wishes for your upcoming retirement. Certainly, it was a pleasure working with you over the years.

好的。謝謝你，奧利維爾。這非常有幫助。我還想對您即將退休表示祝賀和最美好的祝愿。當然，這些年來與您合作非常愉快。

Thank you. I'm going to be still around for a while now, right. So you're going to hear from me for the next two quarters with pleasure.

謝謝。我現在還要再待一段時間，對吧。因此，您將很高興在接下來的兩個季度收到我的來信。

Oh, right. Okay. Well, I look forward to talking to you then.

哦，對了。好的。好吧，我期待著那時與您交談。

Thank you.

謝謝。

Joe Gomes, Noble Capital Markets.

喬‧戈麥斯，諾布爾資本市場。

It's Josh filling in for Joe. So now we're kind of a couple of months just into the completion of MRP. Can you guys describe to me how the integration of it is actually kind of coming along and some key takeaways so far into it? Has the company really picked up any new business ones from it so far?

喬許（Josh）取代喬（Joe）。現在我們距離 MRP 的完成還有幾個月的時間。你們能否向我描述一下它的整合實際上是如何進行的以及到目前為止的一些關鍵要點？到目前為止，公司真的從中獲得了新的業務嗎？

Well, as we explained, Josh, for the foreseeable future, we're going to continue to operate the businesses as they've been operating under their current delivery models and brands. That doesn't mean we're not spending a lot of time with the Motion Recruitment Partners' leadership team working on ideas and plans for integration when it makes sense.

好吧，正如我們所解釋的，喬什，在可預見的未來，我們將繼續按照他們目前的交付模式和品牌來經營這些業務。這並不意味著我們不會花很多時間與 Motion Recruitment Partners 的領導團隊一起研究有意義的整合想法和計劃。

We have been encouraged by the collaboration between the teams on both the staffing and solution side of the Motion Recruitment Partners business, as well as within the Sevenstep business. And there have been opportunities that we've taken advantage of that the combined forces of Kelly and MRP has proven to be an advantage.

我們對 Motion 招募合作夥伴業務以及 Sevenstep 業務的人員配置和解決方案的團隊之間的合作感到鼓舞。我們曾經利用過一些機會，凱利和 MRP 的結合已被證明是一種優勢。

It's still early, but we're encouraged by what we think is the market and customer reaction to the combination and partnership. And more to come on that as we further refine what the ideal or optimized operating model will be going forward.

現在還為時過早，但我們認為市場和客戶對合併和合作夥伴關係的反應令我們感到鼓舞。隨著我們進一步完善理想或優化的營運模式，未來還會有更多內容出現。

Okay. That's helpful. Thank you. And you kind of touched on the M&A side a little bit, but you guys talked about in the previous quarter how there's kind of more discussion happening. Is that really still true now? Is there kind of more properties in the market that you're seeing or is it still roughly about the same?

好的。這很有幫助。謝謝。你們稍微談到了併購方面的問題，但你們在上個季度談到瞭如何進行更多的討論。現在真的還是這樣嗎？您在市場上看到的房產是否更多，或者仍然大致相同？

I'd say it's roughly about the same, Josh. It's still not what it was two years or three years ago. I think companies are still a little bit cautious about coming off the sidelines, so the flow is not what it was at its height.

我想說，情況大致相同，喬許。現在仍然不是兩年前、三年前的樣子。我認為公司對於退出觀望仍然有點謹慎，所以流量並不像高峰時那樣。

But as you know, in our business in particular, not everything comes to market, and so we continue to explore high-quality, high-growth, high-margin businesses, and develop relationships that we think could potentially at some point in the future result in an acquisition similar to how we accomplished MRP.

但正如你所知，特別是在我們的業務中，並不是所有的東西都會進入市場，因此我們繼續探索高品質、高成長、高利潤的業務，並發展我們認為在未來某個時候可能存在的關係導致的收購類似於我們完成 MRP 的方式。

Okay. Yeah. Thank you for the color. And then last one from me, it's been probably a couple quarters you guys commented on the Kelly Arc. Can you guys kind of provide us with an update on that, kind of what's been the interest been like in that program?

好的。是的。謝謝你的顏色。然後是我的最後一篇，你們對凱利弧線的評論可能已經有幾季了。你們能為我們提供一下最新情況嗎？

Well, the interest is high. The fact is that it's a platform solution that has both the talent and customer side in an area of great demand in terms of AI and automation talent. As with any platform-driven solution, adoption on both the talent side and the customer side takes time. But we have a dozen-plus customers on the platform and hundreds of AI automation professionals that are also partaking in the solution.

嗯，興趣很高。事實上，它是一個平台解決方案，在人工智慧和自動化人才需求旺盛的領域，同時擁有人才和客戶方。與任何平台驅動的解決方案一樣，人才方面和客戶方面的採用都需要時間。但我們在該平台上有十幾家客戶，以及數百名人工智慧自動化專業人員也參與了解決方案。

And it's one of those solutions, again, a platform solution. As individuals and customers begin to join and register, it has a network effect as people hear about it and learn about it and refer other people to the platform. So we're still optimistic about the solution and the value it brings for both talent and customers and we'll continue to invest our time and technology into it.

它也是這些解決方案之一，也是一個平台解決方案。隨著個人和客戶開始加入和註冊，它會產生網路效應，因為人們會聽到並了解它並將其他人推薦到該平台。因此，我們仍然對解決方案及其為人才和客戶帶來的價值持樂觀態度，並將繼續投入時間和技術。

Marc Riddick, Sidoti.

馬克·里迪克，西多蒂。

Good morning. And Olivier, I'm glad you're with us today. So I do certainly appreciate that.

早安.奧利維爾，我很高興你今天和我們在一起。所以我確實很欣賞這一點。

Thank you.

謝謝。

I wanted to touch a little bit on sort of maybe piggybacking on the acquisition pipeline and opportunities that you see there. I was wondering if you thought maybe shifting a little bit sort of comfort levels with that and leverage and sort of how that plays into the thought process of the future acquisition pipeline?

我想談談可能利用的收購管道和你在那裡看到的機會。我想知道您是否認為可能會改變一點舒適度和槓桿率，以及這如何影響未來收購管道的思考過程？

Yeah. I mean, if you remember at the time of the MRP acquisition, our debt level was $263 million to be very precise. We are already now at $210 million. If you use what I like to use amongst many other metrics, multiple of EBITDA and I'm using the last 12 months EBITDA, that is the calculation we use in our bond governance. We are now at about 1.7 debt to EBITDA.

是的。我的意思是，如果您還記得在收購 MRP 時，我們的債務水平準確地說是 2.63 億美元。我們現在已經達到 2.1 億美元。如果您使用我在許多其他指標中喜歡使用的 EBITDA 倍數，而我使用的是過去 12 個月的 EBITDA，那麼這就是我們在債券治理中使用的計算方法。我們現在的 EBITDA 負債約為 1.7。

So we are making progress. You have seen that our free cash flow for the quarter was over $50 million. So I feel comfortable that over time, not this year, but I think we are going to continue to basically deleverage as much as we can and as quickly as possible. It's going to take, of course, more than the next 12 months, but I feel that we are on the right track.

所以我們正在取得進展。您已經看到我們本季的自由現金流超過 5000 萬美元。因此，隨著時間的推移，我感到放心，而不是今年，但我認為我們將繼續盡可能地、盡快地去槓桿化。當然，這需要的時間比接下來的 12 個月還要長，但我覺得我們正走在正確的軌道上。

When you see our working capital, glad to confirm that our DSO now is at 57 days, which is, I would say, a big progress versus where we are before and we are in a business where the best way to manage your capital is basically to manage your DSO.

當您看到我們的營運資金時，很高興確認我們的DSO 現在為57 天，我想說，與我們之前的情況相比，這是一個很大的進步，而且我們所處的業務管理資本的最佳方式基本上是管理您的 DSO。

So I feel comfortable that what we see in terms of metrics, balance sheet leverage, we are comfortable that we can continue to deleverage and comfortable to basically go for an acquisition whenever we are ready to do it and whenever we have attractive properties.

因此，我對我們在指標、資產負債表槓桿方面看到的情況感到滿意，我們對我們可以繼續去槓桿化感到滿意，並且只要我們準備好並且只要我們擁有有吸引力的資產，我們就基本上可以進行收購。

Okay, great. And then I guess one quick little follow-up. Is there sort of a general ballpark range we are looking at for any potential technology investments, maybe CapEx for this year? Are there any sort of investments that you see coming, whether it was in conjunction with MRP, but just maybe enterprise-wide would be great?

好的，太好了。然後我猜想會有一個快速的小後續行動。我們是否正在尋找任何潛在技術投資的總體範圍，也許是今年的資本支出？您認為未來是否會進行任何類型的投資，無論是與 MRP 結合使用，還是企業範圍內的投資都很棒？

I mean, of course, you can assess our CapEx at least on the cash flow by looking at our cash flow statement. Most of our CapEx over time have been on Technology and it will continue to be the case. You need to think about something in the region of $20 million, $25 million on a recurring basis. Of course, that does not take into account technology integration of MRP that, as Peter was mentioning, is going to happen as soon as we have the earn-out behind us.

我的意思是，當然，您可以透過查看我們的現金流量表來評估我們至少在現金流方面的資本支出。隨著時間的推移，我們的大部分資本支出都花在了技術上，而且情況也將繼續如此。你需要考慮經常性的 2000 萬美元、2500 萬美元左右的事情。當然，這並沒有考慮 MRP 的技術集成，正如 Peter 所提到的，一旦我們有了盈利，就會發生 MRP 的技術集成。

So after Q1 of next year, we are planning for it now, and it will possibly move the $20 million to $25 million up for a temporary period. But that's something that knowing our free cash flow generation, I feel comfortable that we can absorb higher capital expenses and the $20 million, $25 million at least for a limited period of time, which may happen through this integration of technology for MRP.

因此，明年第一季之後，我們現在正在計劃，可能會暫時將資金增加 2,000 萬至 2,500 萬美元。但知道我們的自由現金流產生後，我感到放心的是，我們可以吸收更高的資本支出，至少在有限的時間內吸收 2000 萬美元、2500 萬美元，這可能透過 MRP 技術整合來實現。

(Operator Instructions) And at this time, there are no further questions.

（操作員說明） 此時，沒有進一步的問題。

Okay, Greg, I think we can end the call. Thank you very much.

好吧，格雷格，我想我們可以結束通話了。非常感謝。

Thank you, Greg.

謝謝你，格雷格。

Thank you. Ladies and gentlemen, that does conclude your conference for today. Thank you for your participation and for using AT&T Teleconference. You may now disconnect.

謝謝。女士們、先生們，今天的會議到此結束。感謝您的參與和使用 AT&T 電話會議。您現在可以斷開連線。