Matthews International Corp (MATW) 2025 Q1 法說會逐字稿

Greetings and welcome to the Matthews International first quarter, fiscal 2025, financial results conference

歡迎參加馬修斯國際 2025 財年第一季財務業績會議

(Operator Instructions)

（操作員指令）

It is now my pleasure to introduce your host, Steven Nicola, Chief Financial Officer.

現在我很高興介紹您的主持人，財務長史蒂文·尼古拉。

Thank you, sir.

謝謝您，先生。

You may begin.

你可以開始了。

Thank you, Christine and Good morning.

謝謝你，克里斯汀，早安。

I'm Steven Nicola, Chief Financial Officer of Matthews.

我是史蒂文‧尼古拉 (Steven Nicola)，馬修斯 (Matthews) 財務長。

And with me today is Joseph C. Bartolacci , our company's President and Chief Executive Officer.

今天和我一起的是我們公司的總裁兼執行長 Joseph C. Bartolacci。

Before we start, I would like to remind you that our earnings release was posted on the company's website www.matw.com in the investors section last night.

在我們開始之前，我想提醒您，我們的收益報告昨晚已發佈在公司網站 www.matw.com 的投資者部分。

The presentation for our call can also be accessed in the investors section of the website under presentations.

您也可以在網站的投資者部分的簡報中查閱我們的電話會議簡報。

Any forward-looking statements in connection with this discussion are being made pursuant to the Safe Harbor provisions of the private securities litigation reform Act of 1995, factors that could cause the company's results to differ from those discussed today are set forth in the company's annual report on form 10-K and other public filings with the SEC.

與本次討論有關的任何前瞻性陳述均依據美國 1995 年私人證券訴訟改革法案的安全港規定做出，可能導致公司業績與今天討論的業績不同的因素均在公司的 10-K 表格年度報告和向美國證券交易委員會提交的其他公開文件中進行了說明。

In addition, we will be discussing non-GAAP Financial metrics and encourage you to read our disclosures and reconciliation tables.

此外，我們將討論非 GAAP 財務指標，並鼓勵您閱讀我們的揭露和對帳表。

As you consider these metrics in connection with any forward-looking statements and on non GAAP Financial information.

當您將這些指標與任何前瞻性陳述和非 GAAP 財務資訊結合起來考慮時。

Please read the disclaimer included in today's presentation materials located on our website.

請閱讀我們網站上今天的簡報資料中包含的免責聲明。

Now I will turn the call over to Joseph.

現在我將電話轉給約瑟夫。

Thank you, Steven.

謝謝你，史蒂文。

Good morning to start our discussion today.

早安，我們今天開始討論。

I want to provide some color around an important development related to the company's energy business from earlier this week.

我想介紹一下本週稍早與公司能源業務相關的重要進展。

On Wednesday, an arbitrator in a proceeding that we initiated against Tesla over one year ago issued a ruling in which the arbitrator acknowledged our company's long history, extensive research and development and growing patent portfolio in advanced dry battery electrode technology and confirmed our right to continue marketing offering and selling that technology to others.

週三，在我們一年多前對特斯拉發起的訴訟中，仲裁員發布了一項裁決，仲裁員承認我們公司在先進乾電池電極技術方面擁有悠久的歷史、廣泛的研發和不斷增長的專利組合，並確認我們有權繼續向他人營銷、提供和銷售該技術。

This ruling effectively clarifies our rights in this groundbreaking technology and reestablish is what we have been saying for years, we have valuable solutions founded on extensive know how and intellectual property to support the advancement of dry battery electrode technology and we have the right to sell it to others.

這項裁決有效地明確了我們在這項突破性技術中的權利，並重申了我們多年來一直在說的話，我們擁有基於廣泛的專業知識和智慧財產權的寶貴解決方案，以支持乾電池電極技術的進步，我們有權將其出售給其他人。

--After exhausting amical efforts to negotiate a resolution with Tesla.

——在竭盡全力與特斯拉協商解決方案後。

Matthews, was forced to file for a declaratory judgment in a binding arbitration seeking clarification of Matthews, rights to continue selling our innovative DBE solutions to others.

馬修斯被迫在一項具有約束力的仲裁中申請確認判決，尋求澄清馬修斯繼續向他人銷售我們創新的 DBE 解決方案的權利。

Tesla, ignored the contractual obligation to arbitrate confidentially and instead initiated litigation in Federal court long after we filed our arbitration vaguely alleging Matthews, had stolen trade secrets.

特斯拉無視合約中保密仲裁的義務，反而在我們提交仲裁後很久才向聯邦法院提起訴訟，含糊地指控馬修斯竊取了商業機密。

Tesla's retaliatory lawsuit coupled with numerous other threats in action has impaired our ability to work with others in the provision of DBE solution and as a result has harmed our business.

特斯拉的報復性訴訟加上其他眾多威脅行動削弱了我們與其他公司合作提供 DBE 解決方案的能力，並因此損害了我們的業務。

During the past 18 months, we dutifully adhered to the terms of the party's arbitration agreement which necessarily prevented us from fully disclosing what, transferring behind the scenes.

在過去的 18 個月中，我們忠實地遵守了當事人的仲裁協議的條款，這必然使我們無法完全揭露幕後轉移的內容。

But given Tesla's public filing of the trade secret suit and our obligations under federal securities law, we are required to share this news with our shareholders and customers.

但鑑於特斯拉公開提起商業機密訴訟以及我們在聯邦證券法下的義務，我們必須與股東和客戶分享這項消息。

As I have said numerous times, we have been working in the battery space for over a decade and have independently developed significant intellectual property including a recently issued foundational patent in the United States, that further confirms our development of this groundbreaking technology and our rights to continue developing and selling it.

正如我多次說過的，我們在電池領域已經工作了十多年，並獨立開發了重要的智慧財產權，包括最近在美國頒發的一項基礎專利，這進一步證實了我們對這項突破性技術的開發以及我們繼續開發和銷售它的權利。

Pursuant to the arbitrator's ruling, we now intend to resume vigorously promoting our DBE Solutions given the ongoing confidentiality considerations.

根據仲裁員的裁決，考慮到持續的保密性考慮，我們現在打算恢復大力推廣我們的 DBE 解決方案。

I remain limited in what I can be, what can be discussed at this time.

我目前的能力和可以討論的內容仍然有限。

Moving on to other exciting news.

接下來是其他令人興奮的消息。

I will now share some details in our recent announcement of the sale of SGK brand Solutions.

現在，我將分享我們最近宣佈出售 SGK 品牌解決方案的一些細節。

On January 8, we announced the sale of SGK to a newly formed entity created with SGS & Co which will combine the two businesses.

1 月 8 日，我們宣布將 SGK 出售給與 SGS & Co 共同組成的新實體，該實體將合併兩家公司。

We believe that the deal creates a world class provider of brand solutions, which should be a highly attractive asset once integration is completed, the transaction will create an entity which begins with almost $100 million of EBITDA but is expected to generate $50 million of synergies over the next 24 to 30 months.

我們相信，此次交易將創造一個世界級的品牌解決方案提供商，一旦整合完成，這將成為一項極具吸引力的資產，此次交易將創建一個以近 1 億美元的 EBITDA 開始的實體，但預計將在未來 24 到 30 個月內產生 5000 萬美元的協同效應。

In addition to the synergies created within the combined entities, the transaction substantially improved Matthew's, operating structure and advances our business strategy for the following reasons.

除了合併後實體內產生的協同效應之外，此次交易還大大改善了 Matthew 的營運結構並推進了我們的業務策略，原因如下。

One, the deal significantly simplifies our operating and corporate structure thereby allowing us to focus on higher growth and higher margin businesses.

一方面，這筆交易大大簡化了我們的營運和公司結構，使我們能夠專注於更高成長、更高利潤的業務。

We expect that post transition services which we will provide for the new entity, our corporate function can be simplified and reduced by up to a further $15 million.

我們預計，我們為新實體提供的過渡後服務將使我們的公司職能進一步簡化和減少，最多可節省 1500 萬美元。

Two, the transaction as structures enables us to realize significant value for the brand solution segment at an attractive multiple for an asset was to us generally considered dilutive by the market to the overall valuation of Matthews.

二，作為結構化交易，該交易使我們能夠以具有吸引力的倍數實現品牌解決方案部門的重大價值，而我們通常認為該資產被市場稀釋了馬修斯的整體估值。

We received a multiple of 10 times for our 60% of SGK that was transferred to the new entity significantly higher than anyone in the market had anticipated and about equal to the estimated value of all of SGK.

我們轉讓給新實體的 60% SGK 股份獲得了 10 倍的收益，遠高於市場上任何人的預期，大約相當於 SGK 全部股份的估計價值。

Three proceeds from the transaction will be immediately applied to debt reduction pursuant to our state objectives.

交易所得的三筆收益將根據我們的國家目標立即用於減債。

As a result, our net leverage will improve from about 3.9 today, pre-transaction to less than three post-transaction which will decline further.

因此，我們的淨槓桿率將從交易前的約3.9提高到交易後的3以下，並將進一步下降。

When we refinance the new entity and cash out our $50 million of preferred instrument.

當我們為新實體再融資並套現 5,000 萬美元的優先股。

Four, we retain significant upside as a new entity which we believe upon exit will be a much stronger business than it is.

第四，作為一個新的實體，我們保留了顯著的優勢，我們相信，退出後，我們的業務將比現在更強大。

Now, we also retained several significant SGK related assets.

現在，我們也保留了幾個重要的SGK相關資產。

Our German wrote to of your business and a critical software investment value is over $20 million.

我們的德國信件涉及您的業務以及一項價值超過 2000 萬美元的關鍵軟體投資。

Today, we expect to exit these investments in the near future.

今天，我們預計將在不久的將來退出這些投資。

As we see the opportunity arise, we can provide additional details of the deal during Q&A.

當我們發現機會出現時，我們可以在問答期間提供有關交易的更多細節。

But let me first provide you with some background behind our discussions with SGS.

但首先，讓我先向您介紹一下我們與 SGS 討論的一些背景。

And it's important for you to understand how committed we have been to the idea of optimizing the full value of our asset portfolio.

您必須了解，我們對優化資產組合全部價值的決心有多麼堅定。

We have been working on a deal with SGS and its previous owners since 2019.

自 2019 年以來，我們一直在與 SGS 及其前所有者達成交易。

Those discussions included various private equity firms that owned SGS during the last five years and other entities including a minority business entity or MBE.

這些討論包括過去五年內擁有 SGS 的各種私募股權公司以及其他實體，包括少數族裔企業實體或 MBE。

We are close to an agreement on the deal in 2020, with the PE firm that then owned SGS.

我們即將與當時擁有 SGS 的 PE 公司就 2020 年的交易達成協議。

But the COVID pandemic and the market pressures that it created by the restructuring of the SGS ownership as the world slowly began to recover.

但隨著世界經濟開始緩慢復甦，新冠疫情以及 SGS 所有權重組所帶來的市場壓力也隨之而來。

We again initiated discussions with SGS and the new PE owner in 2021, but then the Ukraine crisis in early hit in early 2022, resulting in a significant hit to commercial productivity in Europe for both businesses and resulted in yet another restructuring of the ownership of SGS.

我們在 2021 年再次與 SGS 和新的 PE 所有者展開討論，但隨後烏克蘭危機於 2022 年初爆發，導致兩家企業在歐洲的商業生產力受到嚴重打擊，並導致 SGS 所有權再次重組。

In 2023, we initiated sales discussions with an MBE outlining our structure whereby Matthews would retain a portion of a new entity to be created through the acquisition.

2023 年，我們與 MBE 展開了銷售討論，概述了我們的結構，即 Matthews 將保留透過收購創建的新實體的一部分。

And the MBE would be the majority owning owner, allowing it to use its minority business status to generate business for the consumer goods from the consumer goods companies from which we would benefit from as a minority owner.

而 MBE 將成為多數股權所有者，從而允許其利用其少數股權地位從消費品公司中創造消費品業務，而我們作為少數股權所有者將從中受益。

However, the MBE chose another acquisition alternative.

然而，MBE 選擇了另一種收購方案。

We then reengaged with the current owners of SGS in 2024, which led us to the current deal structure.

我們隨後於 2024 年與 SGS 的現任所有者重新合作，並形成了目前的交易結構。

This was a complex transaction that required significant time to evaluate, negotiate, execute and announce.

這是一項複雜的交易，需要大量時間來評估、談判、執行和宣布。

It is also a highly accretive transaction that has preserved the true value of SGK for our shareholders.

這也是一項高度增值的交易，為我們的股東保留了 SGK 的真正價值。

Why is the multiple that we receive?

為什麼我們收到的是倍數？

We achieve so attractive much more than most had anticipated because even though Matthews, is a minority owner in the deal, SGS is integrating into SGKs platform, a platform in which we have invested a platform that has generated over $1 billion in adjusted.

我們取得的成績遠遠超出了大多數人的預期，因為儘管馬修斯在此次交易中只是少數股東，但 SGS 正在融入 SGK 平台，而我們已在該平台進行了投資，該平台已產生了超過 10 億美元的調整後利潤。

But since it acquisition in 2014, and a platform that played a significant role in returning capital to our shareholders during that time period, though we will not be running the new entity, the investments we made in SGK drove this deal and will ultimately result in significant value creation for our shareholders.

但自 2014 年收購以來，該平台在該時期內為股東返還資本發揮了重要作用，儘管我們不會運營新實體，但我們對 SGK 的投資推動了這筆交易，並最終將為我們的股東創造重大價值。

In fact, one analyst note on the deal stated that we could generate a total consideration of close to $700 to $750 million which would be almost equal to our market cap.

事實上，一份關於這筆交易的分析師報告指出，我們可以獲得接近 7 億至 7.5 億美元的總對價，幾乎相當於我們的市值。

Prior to the announcement date of the deal, we are awaiting approval from the Federal Trade Commission and expect the deal to close in the first half of this calendar year as we work towards closing this deal, it's useful to look back on what has what has been created through our commitment to optimizing the value of our portfolio over the last 10 years.

在交易宣布之前，我們正在等待聯邦貿易委員會的批准，預計交易將在今年上半年完成。

And despite the challenges posed by a global pandemic and geopolitical events and regulatory challenges, our consolidated sales have grown 62%.

儘管面臨全球疫情、地緣政治事件和監管挑戰，我們的綜合銷售額仍成長了 62%。

During that time, our memorialization business has evolved into an industry leader.

在此期間，我們的紀念業務已發展成為行業領導者。

Our energy business has unlocked significant opportunities to create value that has not yet been fully appreciated by the market.

我們的能源業務已釋放出重大機遇，可以創造市場尚未充分認識到的價值。

And our warehouse automation and product identification businesses have found promising opportunities in innovative segments.

我們的倉庫自動化和產品識別業務已經在創新領域找到了良好的機會。

We will continue to focus on driving growth at these emerging businesses which will ultimately force us to evaluate the portfolio at an opportune time.

我們將繼續專注於推動這些新興業務的成長，最終將迫使我們在適當的時候評估投資組合。

Finally turning to our upcoming annual shareholders meeting and the contested proxy.

最後談談我們即將召開的年度股東會和有爭議的代理。

I ask you to realize that actions speak louder than words in the last 30 days, this management team together with the full support of the board of directors have disclosed two significant events that have been in the works for several years.

我請你們認識到，行動勝於言語，在過去的 30 天裡，這個管理團隊在董事會的全力支持下披露了兩件已經籌備多年的重大事件。

But due to the confidentiality requirements, we have been unable to disclose both transactions required patience and a clear understanding by the board of directors of the value creation opportunity to be achieved upon success, In the SGK transaction will realize hundreds of millions of dollars more than the market.

但由於保密要求，我們一直無法披露這兩項交易所需的耐心以及董事會對交易成功後將實現的價值創造機會的清晰理解，在SGK交易中將實現比市場多數億美元的收益。

And Barrington expected thanks to the patience of the board of directors.

巴林頓也預計董事會將保持耐心。

In the Tesla arbitration, the management and the board of directors had the will to initiate an action against one of the largest companies in the world to protect our rights to our highly valuable and proprietary DBE technology.

在特斯拉仲裁中，管理階層和董事會有意願對世界上最大的公司之一提起訴訟，以保護我們對極具價值的專有 DBE 技術的權利。

Both situations demonstrate the importance of having knowledgeable directors who understand the value and complexity of our diverse businesses and how true long term value can be created and protected when long term strategic plans are thoughtfully and patiently developed.

這兩種情況都表明，擁有知識淵博的董事非常重要，他們了解我們多元化業務的價值和複雜性，以及如何在經過深思熟慮和耐心製定長期戰略計劃時創造和保護真正的長期價值。

This value proposition is in stark contract to the position of our activist investor Barrington capital, whose perspective in short term and who remarkably still knows very little about our businesses.

這個價值主張與我們的激進投資者巴林頓資本的立場形成了鮮明的對比，巴林頓資本的眼光只限於短期，對我們的業務仍然知之甚少。

Indeed, our long term shareholders stand to benefit from the knowledge embedded within our directors, especially as we continue our evaluation of strategic alternatives.

事實上，我們的長期股東將從我們董事的知識中受益，特別是在我們繼續評估策略替代方案時。

Now, after the developments from earlier this week, I ask you to vote for our current slate of directors especially given our recent announcements.

現在，根據本週早些時候的發展，特別是考慮到我們最近的公告，我請求您投票選出我們目前的董事名單。

Lastly, with respect to our outlook for the year, we are maintaining our guidance for adjusted but that in the range of $205 million to $215 million.

最後，關於我們今年的展望，我們維持調整後的預期，但在 2.05 億美元至 2.15 億美元之間。

This is of course is dependent on the timing of the closing of the SGK transaction which we will keep you informed of.

這當然取決於 SGK 交易結束的時間，我們將隨時通知您。

Now.

現在。

I will turn it over to Steven to talk about the results for the court.

我將把這個問題交給史蒂文來討論法庭的結果。

Thank you, Joseph, for the financial review.

謝謝約瑟夫的財務審查。

Let's begin with slide 7 for the fiscal 2025, first quarter, the company reported a net loss of $3.5 million or $0.11 per share compared to a net loss of $2.3 million or $0.07 per share a year ago on a non-GAAP adjusted basis, net income attributable to the company for the current quarter was $4.3 million or $0.14 per share compared to 11.3 million or $0.37 per share last year.

讓我們從第 7 張投影片開始，了解 2025 財年第一季的情況，該公司報告淨虧損為 350 萬美元或每股 0.11 美元，而去年同期的非 GAAP 調整後淨虧損為 230 萬美元或每股 0.07 美元，本季歸屬於公司的淨收入為 410 萬美元，而去年同期為每股 10 萬美元。

The decline primarily reflected the impacts of lower adjusted EBITDA which I will discuss in a few minutes and higher interest expense.

這一下降主要反映了調整後 EBITDA 下降的影響（我將在幾分鐘內討論）和利息支出增加的影響。

For the current quarter.

就本季而言。

Consolidated sales for the fiscal 2025, first quarter were $401.8 million compared to $450 million a year ago.

2025 財年第一季的綜合銷售額為 4.018 億美元，而去年同期為 4.5 億美元。

The decline primarily reflected lower sales for the industrial technology segment mainly reflecting lower engineering sales.

下降主要反映工業技術部門銷售額的下降，尤其是反映工程銷售額的下降。

Additionally, sales for The memorialization segment declined for the current quarter compared to a year ago, primarily due to lower unit volumes.

此外，本季紀念部門的銷售額與去年同期相比有所下降，主要原因是單位數量下降。

Estimated US casketed deaths declined from the same quarter a year ago.

據估計，美國棺材內死亡人數與去年同期相比有所下降。

Sales for the SGK brand solutions segment were modestly higher than the first quarter last year which is continuing to benefit from more stable market conditions.

SGK 品牌解決方案部門的銷售額略高於去年第一季度，這繼續受益於更穩定的市場條件。

Consolidated, adjust the deep enough for the fiscal 2025, first quarter was $40 million compared to $45.5 million a year ago.

合併後，調整至 2025 財年的足夠深度，第一季為 4,000 萬美元，而去年同期為 4,550 萬美元。

The decrease primarily reflected a decline in the industrial technology segment adjusted EBITDA for the memorialization and SGK brand solutions segments remained relatively steady compared to last year.

下降主要反映了工業技術部門紀念活動和SGK品牌解決方案部門調整後EBITDA的下降，與去年相比保持相對穩定。

In addition, corporate and other non operating costs were lower than a year ago, partly reflecting the company's ongoing cost reduction efforts.

此外，公司及其他非營業成本低於一年前，部分反映了公司正在持續削減成本的努力。

Please see the reconciliations of adjusted EBITDA and non GAAP adjusted earnings per share provided in our earnings release.

請參閱我們的收益報告中提供的調整後 EBITDA 與非 GAAP 調整後每股收益的對帳表。

Please move to slide 8 to review our segment results.

請移至投影片 8 查看我們的分部結果。

Sales for the memorialization segment for the fiscal 2025, first quarter were $190.5 million compared to $208.1 million for the same quarter a year ago.

2025 財年第一季紀念部門的銷售額為 1.905 億美元，而去年同期為 2.081 億美元。

The decrease primarily reflected lower granite memorial sales and a decline in casket unit volumes.

下降主要反映了花崗岩紀念品銷售下降和棺材數量下降。

Granite sales were higher last year, as in addition to regular volume, the business was working down backlogs which had built up during the pandemic.

去年花崗岩的銷售量較高，因為除了正常銷售外，該企業還在處理疫情期間累積的積壓訂單。

The unit volume declines for caskets primarily reflected lower US casket deaths, bronze memorial sales were also lower for the quarter.

棺材單位銷售量的下降主要反映了美國棺材死亡人數的減少，本季青銅紀念品的銷售量也有所下降。

In addition, memorialization sales for the current quarter were unfavorably impacted by the disposal of the company's unprofitable European cremation and incineration equipment operations.

此外，本季的紀念銷售受到公司無利可圖的歐洲火葬和焚化設備業務處置的不利影響。

These decreases were partially offset by higher price realization and incremental sales from the acquisition of a casket distributor in January 2024, memorialization segment adjusted EBITDA for the current quarter was $36.6 million which was relatively unchanged from $36.7 million a year ago.

這些下降被更高的價格實現和 2024 年 1 月收購棺材分銷商帶來的增量銷售額部分抵消，本季紀念部門調整後的 EBITDA 為 3,660 萬美元，與去年同期的 3,670 萬美元基本持平。

The unfavorable impact of the decline in sales was partially offset by the elimination of losses in the European cremation and incineration equipment operations as a result of the disposal of the business.

由於業務處置，歐洲火葬和焚化設備業務的損失消除，部分抵消了銷售下滑帶來的不利影響。

In addition, benefits from cost savings initiatives and improved pricing also contributed to the current quarter which were partially offset by higher us health care costs.

此外，成本節約措施和定價改進帶來的好處也為本季做出了貢獻，但被美國醫療保健成本的上漲部分所抵銷。

Please move to slide nine, sales for the industrial technology segment for the fiscal 2025, first quarter were $80.5 million compared to $111.4 million a year ago.

請移至第九張投影片，2025 財年第一季工業技術部門的銷售額為 8,050 萬美元，而去年同期為 1.114 億美元。

The engineering business reported significantly lower sales for the current quarter compared to a year ago, primarily reflecting the slowdown in the Tesla project and the impact of the litigation on work with other customers.

工程業務本季的銷售額與去年同期相比大幅下降，主要反映了特斯拉專案的放緩以及訴訟對與其他客戶合作的影響。

Sales for the warehouse for the warehouse automation business were also lower for the quarter.

本季倉庫自動化業務的倉庫銷售也有所下降。

In addition, sales for the current quarter were unfavorably impacted by the closure of the unprofitable European automotive business that was acquired in connection with the [over] transaction.

此外，由於本次交易中收購的無利可圖的歐洲汽車業務的關閉，本季的銷售也受到不利影響。

A few years ago, the product identification business reported modestly higher sales compared to last year adjusted EBITDA for the industrial technology segment for the current quarter was $1.8 million compared to $9.6 million a year ago.

幾年前，產品識別業務報告的銷售額與去年相比略有成長，本季工業技術部門的調整後 EBITDA 為 180 萬美元，而去年同期為 960 萬美元。

The decrease primarily reflected the impact of lower sales for the engineering business.

下降主要反映工程業務銷售下降的影響。

The adjusted EBITDA decline also reflected the impact of lower warehouse automation sales.

調整後的 EBITDA 下降也反映了倉庫自動化銷售下降的影響。

The declines were partially offset by higher sales and adjusted EBITDA for the product identification business, lower bad debt and bonus expenses and benefits from recent cost reduction actions in Germany.

產品識別業務的銷售額和調整後 EBITDA 的成長、壞帳和獎金費用的減少、以及德國近期採取的成本削減措施帶來的收益，部分抵銷了上述下滑的影響。

Please move to slide 10.

請移至第 10 張投影片。

The SGK brand solutions segment reported sales of $130.8 million for the quarter ended December 31, 2024, compared to $130.5 million a year ago, representing an increase of $282,000.

SGK 品牌解決方案部門報告稱，截至 2024 年 12 月 31 日的季度銷售額為 1.308 億美元，而去年同期為 1.305 億美元，增加了 282,000 美元。

The increase primarily reflected improved pricing to mitigate the impacts of inflationary cost increases and higher sales for our private label business, our European cylinder business and in the Asia Pacific brand market, these increases were partially offset by a decline in brand experience sales and lower sales in the segment's European brand markets.

這一成長主要反映了定價的改善，以減輕通貨膨脹成本增加的影響，以及我們的自有品牌業務、歐洲圓筒業務和亞太品牌市場的銷售增加，這些增長部分被品牌體驗銷售額的下降和該部門歐洲品牌市場的銷售下降所抵消。

Currency rate changes had an unfavorable impact of $700,000 on current quarter sales compared to a year ago adjusted EBITDA for the SGK brand solutions segment was $12.3 million for the current quarter compared to $12.9 million a year ago.

與去年同期相比，匯率變動對本季銷售額產生了 70 萬美元的不利影響，SGK 品牌解決方案部門本季的調整後 EBITDA 為 1,230 萬美元，而去年同期為 1,290 萬美元。

The decrease primarily reflected higher wages and benefits for the current quarter including increased US health care costs.

下降主要反映了本季工資和福利的提高，包括美國醫療保健成本的增加。

These increases were substantially mitigated by the benefits of improved pricing to mitigate inflationary cost increases.

由於改善定價以緩解通貨膨脹導致的成本增加，這些成本增加的幅度大大降低。

And the segment's recent cost reduction actions.

以及該部門最近的成本削減措施。

Please move to slide 11, cash flow utilized in operating activities for the fiscal 2025, first quarter was $25 million compared to $27.3 million a year ago.

請移至第 11 張投影片，2025 財年第一季經營活動所用現金流為 2,500 萬美元，去年同期為 2,730 萬美元。

Our first fiscal quarter is typically our slowest generally reflecting a net operating cash outflow due primarily to seasonally lower earnings and the payment of year end accruals taxes and insurance and other annual payment items.

我們的第一個財政季度通常是最慢的，通常反映淨營業現金流出，主要原因是季節性收益較低以及年末應計稅金和保險以及其他年度支付項目的支付。

The current quarter also reflected payments in connection with litigation costs and upfront costs related to our cost reduction actions which were partially offset by proceeds from asset sales.

本季也反映了與訴訟費用和與我們的成本削減行動相關的前期成本有關的支付，這些支付部分被資產出售收益所抵消。

Outstanding debt was $809 million at December 31, 2024, compared to $776 million at the end of September, representing an increase of $32.7 million during the fiscal 2025, first quarter, the company's net debt which represents outstanding debt less cash was $776 million at the end of the current quarter.

截至 2024 年 12 月 31 日，未償還債務為 8.09 億美元，而 9 月底為 7.76 億美元，增加了 3,270 萬美元。

At December 31, 2024.

截至 2024 年 12 月 31 日。

The company's net debt leverage ratio was 3.88 which is based on net debt and trailing 12 months adjusted EBITDA.

該公司的淨債務槓桿率為 3.88，該比率基於淨債務和過去 12 個月調整後的 EBITDA。

Again, the company's first fiscal quarter is generally the lowest cash flow quarter and similar to prior years, we expect cash flow and our net leverage ratio to improve over the remainder of the fiscal year.

再次，公司的第一財季通常是現金流最低的季度，與前幾年類似，我們預計現金流和淨槓桿率將在本財年剩餘時間內有所改善。

In addition, the $250 million cash proceeds from the SGK transaction, which is expected to close mid 2025, will be substantially applied to debt reduction upon receipt.

此外，SGK 交易預計將於 2025 年中期完成，交易產生的 2.5 億美元現金收益將在收到後主要用於減債。

For the fiscal 2025, first quarter the company purchased approximately 171,000 shares under its stock repurchase program.

2025 財年第一季度，該公司根據其股票回購計畫購買了約 171,000 股股票。

These purchases were solely related to withholding taxes on equity compensation, vesting we remain primarily focused on debt reduction.

這些購買僅與股權補償的預扣稅有關，我們仍然主要關注減債。

There were approximately $31 million shares outstanding at December 31, 2024.

截至 2024 年 12 月 31 日，流通股數約為 3,100 萬美元。

As we disclosed last quarter, we recently initiated cost reduction programs that span several of our business units and corporate functions.

正如我們在上個季度所揭露的那樣，我們最近啟動了涵蓋多個業務部門和公司職能部門的成本削減計劃。

These programs are expected to result in annual consolidated savings up to $50 million.

這些項目預計每年將帶來高達 5,000 萬美元的綜合節餘。

And today we are on track to achieve and potentially exceed this target.

今天我們正朝著實現甚至可能超越這目標的方向前進。

The most significant portions of the estimated savings will be from our engineering and tooling operations in Europe and our general and administrative costs.

預計節省的最大部分將來自我們在歐洲的工程和工具業務以及我們的一般及行政費用。

Finally, the board declared last week a quarterly dividend of $0.25 per share on the company's common stock.

最後，董事會上週宣佈公司普通股季度股息為每股 0.25 美元。

The dividend is payable February 24, 2025, to stockholders of record February 10, 2025.

股利將於 2025 年 2 月 24 日支付給 2025 年 2 月 10 日登記在冊的股東。

This concludes the financial review, and we will now open the call to any questions, Christine.

財務審查到此結束，我們現在將開始回答任何問題，克里斯汀。

Thank you.

謝謝。

We will now be conducting a question and answer session.

我們現在將進行問答環節。

(Operator Instructions)

（操作員指令）

Our first question comes from the line of [Liam Burke with B Riley.] Please proceed with your question.

我們的第一個問題來自 [B Riley 的 Liam Burke]。

Thank you.

謝謝。

Good morning, Joseph.

早上好，約瑟夫。

Good morning, Steven.

早安，史蒂文。

Good morning, Liam.

早上好，利亞姆。

Joseph, could you give us a sense?

約瑟夫，你能給我們講一下嗎？

Is I know this is going to be difficult but you were building momentum in the DBE technology and sales prior to the Tesla lawsuit.

我知道這會很困難，但在特斯拉訴訟之前，您已經在 DBE 技術和銷售方面大力發展。

Do you have any sense about how quickly you can reestablish momentum either in backlog or sales growth and any kind of general time frames.

您是否知道您可以多快恢復積壓訂單或銷售成長的勢頭以及任何類型的一般時間框架？

I mean, as you said in the press release, you are reinitiating marketing initiatives immediately.

我的意思是，正如您在新聞稿中所說，您正在立即重新啟動行銷計劃。

Sure, Liam.

當然，利亞姆。

I will be glad to address that first.

我很高興首先談一下這個問題。

Let me, let me address the fact that it was not with just the beginning of the lawsuit.

讓我來說明一下事實，這並不是訴訟剛開始的時候。

There's been a private dispute for almost two years at this point in time that has slowed our, value, our marketing efforts out in the marketplace.

目前，私人糾紛已經持續了近兩年，這減緩了我們在市場上的價值和行銷努力。

So, that delay has significantly curtailed a lot of other companies development in the marketplace.

因此，這種延遲嚴重阻礙了許多其他公司在市場上的發展。

There's no shortage of people that have knocked on our door over the last 18 months or so, 20 months or so.

在過去的 18 個月或 20 個月左右的時間裡，來敲我們門的人從來都不缺。

I expect that they have been doing a lot of work internally without our equipment.

我預計他們在沒有我們的設備的情況下已經在內部做了很多工作。

But as of today, we believe we are the only people that can provide proprietary DBE solution equipment.

但截至今天，我們相信我們是唯一能夠提供專有 DBE 解決方案設備的人。

We expect that ramp to be slow at first because of the nature of I would call it automotive EV production development.

我們預計這一增長一開始會比較緩慢，因為我稱之為汽車電動車生產開發的性質。

But as you saw in the last scale that we had with Tesla, we went from [20 to 50 to 80 to120] pretty quickly with 100 with a $200 million order or so for a number of people at that time, I expect that as we expand the portfolio of customers, we can expand pretty quickly.

但正如你所看到的，我們與特斯拉的最後一次合作，我們的客戶數量很快從20人增加到50人，再到80人，最後到120人，當時有100人的訂單價值約為2億美元，我預計，隨著我們客戶群的擴大，我們的擴張速度也很快。

Okay.

好的。

Fair enough.

很公平。

But I mean, this is not a 2025 event, this is a multiyear event, right?

但我的意思是，這不是 2025 年的活動，而是多年的活動，對嗎？

--it's clearly, we expect to have some benefit coming out in the into 2025, but it will be more around the announcements of with whom we are working with perhaps and, and their levels.

——顯然，我們預計在 2025 年會帶來一些好處，但這更多地將取決於我們與誰合作以及他們的水平。

We have, you know, we have had lab machines in the market.

您知道，我們在市場上有實驗室機器。

We have told you this before.

我們之前已經告訴過你這件事。

We have had lab machines sold for.

我們已經賣出了實驗室機器。

So, people have been testing and developing their own formulation without our help for many, many, many years.

因此，人們在沒有我們幫助的情況下已經測試和開發了自己的配方很多很多年了。

We expect that to ramp up more quickly.

我們預計這一成長將會更快。

So, but I think the key to that Liam is that it will be multiple customers whether rather than one.

所以，但我認為 Liam 的關鍵在於，無論是多個客戶，還是一個客戶。

And that's what we have been inhibited from doing for the last several years.

而這正是過去幾年來我們一直被阻止去做的事情。

Great.

偉大的。

And then very quickly, you have the new printer platform, is that on schedule?

然後很快你們就推出了新的印表機平台，這符合計畫嗎？

We have got, we have had a lot of things going on here.

我們在這裡發生了很多事情。

Where you think we are, we are in the midst that we are in the midst of productions ramp up as we speak.

正如您所想，我們正處於生產加速階段。

That will be in market this year.

這款產品將於今年上市。

We sold interestingly enough, we have spoken often about two D coding.

我們賣的夠有趣，我們經常談論兩個 D 編碼。

We landed our first [two D code] project in Europe for a consumer products company. [Two D code] is coming folks and our technology is primed to take advantage of that

我們在歐洲為一家消費品公司贏得了第一個 [二維碼] 項目。 [Two D 碼] 即將到來，我們的技術已經準備好利用它

[two D code].

【兩個D代碼】

If you don't know what that is, similar to a scaled down QR code, which will replace many of the barcodes that sit on consumer products can contain a lot more data and our ability to produce that.

如果你不知道那是什麼，它類似於縮小版的二維碼，它將取代消費品上的許多條碼，可以包含更多的數據，也具備我們產生這些數據的能力。

Unlike anybody in the marketplace today is going to be an advantage for us going forward.

與當今市場上的任何其他公司都不同的是，這將為我們未來的發展帶來優勢。

Great.

偉大的。

Thank you, Joe.

謝謝你，喬。

Yes.

是的。

Our next question comes from the line of Daniel Moore, with CJS Securities.

我們的下一個問題來自 CJS Securities 的 Daniel Moore。

Please proceed with your question.

請繼續回答您的問題。

Yes, good morning.

是的，早安。

Thanks, Joseph.

謝謝，約瑟夫。

Thanks, Steven.

謝謝，史蒂文。

Memorialization typically --ebbs and flows.

紀念活動通常有起有落。

Though, the decline, this quarter is a little bit larger than, than, than typical.

不過，本季的降幅比正常水準大一些。

You what was the impact in granite of kind of working down backlog last year?

去年減少積壓工作對花崗岩有何影響？

And you know, how would you quantify the impact of exiting the European cremation business?

您知道嗎，您如何量化退出歐洲火葬業務的影響？

Yeah, Daniel.

是的，丹尼爾。

So, the decline in revenues was actually more weighted to the granite.

因此，收入的下降實際上更多是由花崗岩造成的。

So, I can't give you the, I shouldn't give you the specific number, but I would tell you it's more weighted to granite volume.

所以，我不能給你，我不應該給你具體的數字，但我會告訴你，這更取決於花崗岩的體積。

But again, the European cremation and incineration business, which was an unprofitable business for us also was a significant --to that decline.

但是，歐洲的火葬和焚化業務對我們來說是一項無利可圖的業務，這也是造成這種下滑的一個重要原因。

So, those two were, were the more significant pieces.

所以，這兩個是更重要的部分。

And Daniel, as we as Steven referenced to you, the most of the decline in the granite business had to do with work down of backlog post COVID that occurred last year this quarter.

丹尼爾，正如史蒂文向您提到的，花崗岩業務的下滑大部分與去年本季 COVID 疫情後積壓訂單減少有關。

So, we are back to a steady state volume at the granite business as well.

因此，我們的花崗岩業務量也恢復到了穩定狀態。

It was the last of the normalization.

這是最後一次正常化。

Okay.

好的。

So, that was the going forward.

這就是未來的發展。

That should not be a big headwind for the next several quarters.

這對於接下來的幾個季度來說應該不會是一個很大的阻力。

European exit.

退出歐洲。

It was, was there much in the remind me of the timing of exiting the European business.

是的，有很多事情讓我想起了退出歐洲業務的時機。

We exited the European business in the, in Q4 last year.

我們在去年第四季退出了歐洲業務。

Got it helpful and then industrial obviously, energy storage.

它很有幫助，然後顯然對工業和能源儲存都有幫助。

You know, obviously clearly on pause for, obvious reasons.

您知道，顯然暫停是出於顯而易見的原因。

How much of the $30 million decline in the quarter year on year relates to energy storage?

本季同比 3000 萬美元的下降中有多少與能源儲存有關？

How much is just general softness in warehouse automation market products.

多少只是倉庫自動化市場產品的普遍疲軟。

I am just trying to get a sense for the trajectory of the other non energy storage businesses.

我只是想了解其他非能源儲存業務的發展軌跡。

And when we expect those to return to growth.

當我們預計它們將恢復成長時。

The warehouse business was a modest part of the vast majority of the decline was in our energy business.

倉儲業務只是我們能源業務下滑的主因之一。

Due to delays that we have referenced before and probably some implication from the lawsuits that we have been referring to.

由於我們之前提到的延誤，以及我們所提到的訴訟可能帶來的一些影響。

The warehouse business is seeing great uptick in interest as that you might expect as others are seeing it as well.

倉庫業務的興趣正在大幅上升，正如您所預料的，其他人也看到了這一點。

So, we are expecting going forward to have a pretty good recovery in that business.

因此，我們預計該業務未來將會出現相當好的復甦。

It is a lumpier business when it comes to investments in warehouses and that business is seeing that opportunity grow.

當談到倉庫投資時，這是一個比較不穩定的業務，而且該業務正在看到機會成長。

So, on the energy side, you know what's going on and we still have a fairly significant backlog to deliver.

因此，在能源方面，您知道發生了什麼，而且我們仍有相當多的積壓工作需要完成。

Timing of that delivery is somewhat out of our control, but we expect to deliver that over time.

交付時間有點超出我們的控制範圍，但我們希望能夠隨著時間的推移實現交付。

Great and, and as it relates to the arbitration ruling, --this may be a no comment answer, but I will ask the question anyway.

太好了，而且由於它與仲裁裁決有關，這可能是一個無可奉告的答案，但我還是會提出這個問題。

Just what are the next steps that Tesla could take if there are any, is, is an appeal likely, I realize I am asking you to speculate.

特斯拉接下來會採取什麼措施？

So, no worries if that's not possible.

所以，如果不可能的話，也不用擔心。

Look, Daniel, this is a highly confidential matter, but I can tell you this.

聽著，丹尼爾，這是一件高度機密的事情，但我可以告訴你。

We have a definitive ruling for everything we had asked for.

對於我們要求的一切，我們都有最終的裁決。

I can't tell you what they will do and what they might try.

我無法告訴你他們會做什麼或可能會嘗試什麼。

We have a very, very strong opinion, which is exactly what we were seeking.

我們有一個非常非常強烈的意見，這正是我們所尋求的。

We have, we own the rights to sell our proprietary, internally developed solutions and we have the right to market and sell it to others.

我們擁有銷售我們專有的、內部開發的解決方案的權利，並且我們有權向其他人行銷和銷售它。

What they choose to do is outside our control, but we will continue to vigorously defend this highly valuable asset as we go forward.

他們的選擇超出了我們的控制範圍，但我們將繼續大力捍衛這項極為寶貴的資產。

And then as it relates to conversations with, potential non Tesla customers, what are you hearing from them in terms of, will this ruling be enough to give them comfort to move forward from your per perspective.

然後，當涉及到與潛在的非特斯拉客戶的對話時，您從他們那裡聽到了什麼，從您的角度來看，這項裁決是否足以讓他們放心地繼續前進。

To be honest with you, Daniel, we got the ruling two days ago, we just opened the doors for business again yesterday.

老實說，丹尼爾，我們兩天前就收到了裁決，昨天我們才重新開門。

I can't tell you yet what they are saying and what they are not.

我還不能告訴你他們說了什麼、沒說什麼。

Understood.

明白了。

Last one for me, Steven, the just remind us the $50 million run rate, cost savings sounds like could be a little upside how much of that is expected to be achieved in fiscal 2025, and, and how much is, is there any that that remains beyond you know, into 2026, and beyond?

對我來說最後一個問題，史蒂文，提醒我們 5000 萬美元的運行率，成本節省聽起來可能會有點上升，預計在 2025 財年可以實現多少，到 2026 年及以後還能剩下多少？

Thanks again for the color.

再次感謝您的顏色。

Sure.

當然。

We expect to be at a run rate of $25 to $30 million by the end of this year and the rest achieved by the end of the next fiscal year.

我們預計今年底的營業額將達到 2,500 萬至 3,000 萬美元，其餘的營業額將在下一個財年年底實現。

Very good, appreciate it.

非常好，很欣賞。

Our next question comes from the line of Justin Bergner with Gabelli.

我們的下一個問題來自 Gabelli 的 Justin Bergner。

Please proceed with your question.

請繼續回答您的問題。

Good morning, Joseph, Good morning, Steven.

早安，約瑟夫，早安，史蒂文。

Good morning, Justin morning.

早安，賈斯汀。

Way to fight battles on multiple fronts at the same time.

同時在多個戰線上作戰的方式。

Just two quick questions here, the arbitration ruling, what is that due to the strategic review process as it relates to, some of your growth, businesses, particularly energy storage.

這裡只有兩個簡單的問題，仲裁裁決，這與策略審查過程有什麼關係，它與你們的一些成長業務，特別是能源儲存有關。

Does that open up a set of possibilities that might have not been opened before?

這是否會開啟一系列以前可能未曾開啟的可能性？

Wonderful question, Justin.

非常好的問題，賈斯汀。

You know, we announced strategic alternatives here in October, but we have been evaluating that for the better part of 18 to 24 months.

你知道，我們十月就宣布了戰略替代方案，但是我們已經花了18到24個月的大部分時間對其進行了評估。

Most of our actions were already anticipated when this dispute began 18 months ago.

當18個月前這場爭端開始時，我們大多數的行動都已經在預料之中了。

And you know what, we have looked for is opportunities to in to highlight for the investing community, the undervaluation of the smaller businesses, particularly our energy business by bringing in external investments are ultimately perhaps even a spin of the whole entity or whatever it may be.

你知道嗎，我們一直在尋找機會，向投資界強調，小企業，特別是我們的能源業務被低估了，透過引入外部投資，最終或許會對整個實體或其他任何東西產生影響。

That is the evaluation that was going on before the dispute.

這是在爭議發生之前進行的評估。

I expect that now with clarity on what we can do with this ruling, we will pick it up again.

我希望，現在我們清楚瞭如何處理這項裁決，並且能重新開始。

Can't tell you it's going to happen overnight as we have demonstrated, we will be patient to maximize the value for our shareholders as we did with SGK.

我們不能告訴你這會在一夜之間發生，正如我們已經證明的那樣，我們將耐心地為我們的股東實現價值最大化，就像我們對 SGK 所做的那樣。

We will do the same with these other businesses.

我們將對這些其他企業採取同樣的做法。

Got you.

明白了。

Just so, you had just to make sure I understood what you said correctly.

就這樣，你只要確保我正確理解了你所說的話即可。

So, you had been evaluating a spin.

所以，你一直在評估旋轉。

I won't say we are evaluating a spin.

我不會說我們正在評估旋轉。

We were, I mean to be, blunt, we were looking at ways to highlight its value through external investment.

說實話，我們正在尋找透過外部投資來凸顯其價值的方法。

Okay.

好的。

Got you.

明白了。

And then just secondly, just any comment on product identification and Warehouse automation kind of trends and demand.

其次，關於產品識別和倉庫自動化趨勢和需求的任何評論。

Looking forward in the next couple of quarters.

展望未來幾季。

I could tell you product identification is, steady and growing is what you have seen for the last several years.

我可以告訴你，產品識別在過去幾年中一直保持穩定和成長。

The launch of our new product will give us a modest uptick this, but we expect that to be a better contributor next year.

我們的新產品的推出將為我們帶來適度的成長，但我們預計明年它將發揮更大的作用。

Warehouse is seeing great interest again, as we have said before last year, for everybody in the industry was relatively slow.

倉庫再次引起了極大的興趣，正如我們去年所說的那樣，因為該行業中的每個人都相對較慢。

We have a number of comparables that we look at but warehouse right now, quote activity and, and order intake is, better than last year and expecting a strong year for the year.

我們有許多可比情況，但目前倉庫的報價活動和訂單量都比去年好，預計今年將是強勁的一年。

Great.

偉大的。

Thank you.

謝謝。

Thank you, Justin.

謝謝你，賈斯汀。

Our next question comes from the line of Colin Rusch with Oppenheimer.

我們的下一個問題來自奧本海默公司的 Colin Rusch。

Please proceed with your question.

請繼續回答您的問題。

Thanks, so much guys.

非常感謝大家。

You know, can you speak to whether can you speak to whether Tesla is still a customer here?

你知道，你能否談談特斯拉是否仍是這裡的客戶？

Given the fact that there is not any real alternative for them from an equipment or process side, I assume that you guys are still engaged with those guys but would just love to get any sort of update on that relationship outside of the arbitration.

鑑於從設備或工藝方面來看，他們沒有任何真正的替代方案，我認為你們仍然與那些人有聯繫，只是希望在仲裁之外獲得有關這種關係的任何最新進展。

Look Colin I can't speak for them.

聽著科林，我不能代表他們說話。

We consider them a customer.

我們將他們視為顧客。

We still have a significant backlog to deliver of their product as we go forward.

我們在推進過程中仍有大量積壓產品需要交付。

We expect to deliver that product in due course and to be paid for it as we move forward, I can't tell you whether they will remain a customer or not.

我們希望及時交付該產品，並在後續過程中獲得付款，我無法告訴您他們是否會繼續成為我們的客戶。

That will be a choice that they make.

這將是他們所做的選擇。

But we are, our doors are always open.

但我們的大門永遠敞開。

Okay.

好的。

Awesome.

驚人的。

And then from a tech technology perspective, you guys continue to make progress with the DBE, velocity and your ability to to move new materials through through those tools.

然後從技術角度來看，你們在 DBE、速度以及透過這些工具移動新材料的能力方面繼續取得進展。

Can you talk a little bit about the cadence of that development?

能稍微談談這項發展的節奏嗎？

And how we should think about that going forward.

以及我們今後應該如何思考這個問題。

Sure.

當然。

I mean, as you might expect, I mean, we have been working on, as we said on battery technology for over a decade.

我的意思是，正如你所料，我們已經在研究電池技術十多年了。

This is not a novel idea for us.

對我們來說這並不是一個新奇的想法。

So, we have been working on this for a while and our team over there has continued to evolve the both the equipment as well as its capabilities.

因此，我們一直在研究這個問題，我們那邊的團隊也一直在不斷改進設備及其功能。

We see, we see nothing but upside from continue develop.

我們看到，我們看到的只有持續發展的好處。

We are prepared to kind of launch those new technologies as soon as our customers are willing to accept.

只要我們的客戶願意接受，我們就準備好推出這些新技術。

But I would tell you that we have great hope.

但我要告訴你，我們抱持著很大的希望。

One of the reasons you are seeing the depressed results in our industrial technology segment as we continue to invest in that development, we are not going to let it die on the vine.

儘管我們繼續在工業技術領域進行投資，但您仍然看到該領域的業績低迷，原因之一是，我們不會讓它半途而廢。

This ruling that we received gives us the clarity necessary to begin to speak more freely about those developments with our new customers and with our old.

我們收到的這項裁決為我們提供了必要的清晰度，使我們可以開始與新舊客戶更自由地談論這些發展。

But we expect that to be nothing but upside for us going forward.

但我們預計，這對我們未來的發展來說只會是好事。

Great.

偉大的。

Thanks, so much guys.

非常感謝大家。

I will take the rest off line.

我將把其餘部分下線。

Our next question comes from the line of Stephen Percoco with Lark Research.

我們的下一個問題來自 Lark Research 的 Stephen Percoco。

Please proceed with your question.

請繼續回答您的問題。

Thank you.

謝謝。

A couple from me.

這是我的一些照片。

Number one.

第一。

What's your outlook for restructuring expenses during the this year going forward?

您對今年重組費用的展望如何？

I know at the end of the fourth quarter, you had you booked elevated strategic expenses is so was that was the restructuring cost booked in the fourth quarter?

我知道在第四季末，您已經計入了增加的策略費用，那麼這是在第四季度計入的重組成本嗎？

And now we will just be paying down the liabilities or do you intend anticipate any additional restructuring costs during the course of the year?

現在我們只需償還債務，還是您打算預計今年會產生任何額外的重組成本？

So, you are correct, Stephen, so, that we did accrue some significant restructuring costs in our Q4.

所以，史蒂芬，你是對的，我們確實在第四季產生了一些重大的重組成本。

That will be, be paying this year.

也就是說，今年就要付款。

I do expect additional restructuring costs as we continue down the path of our program.

隨著我們繼續推進我們的計劃，我確實預計會有額外的重組成本。

But they should continue to decline.

但它們應該會繼續下降。

Okay.

好的。

And in total savings, I know you are saying 50 but you also said I if you have got my number right, $15 million.

就總儲蓄而言，我知道您說的是 50，但您還說，如果我的數字正確的話，是 1500 萬美元。

So, is that 65 in total that we are looking at, And what if the 15 is additional.

那麼，我們總共考慮的是 65 個，如果另外再考慮 15 個呢？

When do you think that that will be realized?

您認為什麼時候會達成這個目標？

Yeah.

是的。

So, Stephen, you cut out a little bit there, but I think what you are referencing is Joseph's, remarks related to the SGK transaction and future impact on corporate.

因此，史蒂芬，你在這裡稍微刪減了一些，但我認為你引用的是約瑟夫關於 SGK 交易及其對公司未來影響的評論。

So, you would be correct that those our expectation are, those are that those are additive, meaning that the current program, our expectation is $50 million.

所以，您說得對，我們的預期是，這些是附加的，也就是說，對於當前的計劃，我們的預期是 5000 萬美元。

And as I said, in my remarks were on track for that and, and on track to, to potentially exceed that amount.

正如我在我的發言中所說的那樣，我們的目標正在朝著這個方向發展，並且有可能超過這個數字。

The additional reference that Joseph, made the $15 million would be once the SGK transaction closes and once we get past the integration period and our transaction services obligation that should result in meaningful reduction of corporate.

約瑟夫也提到，一旦 SGK 交易結束，我們度過整合期和交易服務義務，這 1500 萬美元將會導致公司成本的大幅減少。

Okay.

好的。

And then in terms of cash flow, you had as a result of the, at least in part of the strategic expenses that you booked in the fourth quarter.

就現金流而言，這至少是您在第四季度確認的部分策略費用的結果。

So, your other liability accounts, compensation, accrued compensation account was elevated at the end of the year.

因此，您的其他負債帳戶、薪酬、應計薪酬帳戶在年底增加了。

You know, well above previous year levels during the course of the year, do you see yourself paying those down.

您知道，今年的債務水平遠高於去年的水平，您是否認為自己可以償還這些債務？

And, if so, it will that return back to, levels that we saw before the fourth quarter of last year.

如果是這樣，它將回到去年第四季之前的水平。

And then in that case, what's the impact on your operating cash flow during the course of the year?

那麼在這種情況下，這會對您全年的經營現金流產生什麼影響？

Do you still think that you could have positive opera cash flow from operating activities during the course of the year?

您是否仍然認為您在全年的歌劇經營活動中能夠獲得正的現金流？

Yes, Stephen.

是的，史蒂芬。

So, I will start with the last part of that.

因此，我將從最後一部分開始。

We expect the operating cash flow between now and the end of the year to be positive for some of the reasons you just mentioned.

由於您剛才提到的一些原因，我們預計從現在到年底的經營現金流將為正值。

We typically in our first fiscal quarter, that's seasonally, our slowest from a cash flow perspective.

通常，在我們的第一個財政季度，從現金流的角度來看，這是季節性最慢的。

We see seasonally lower earnings but also, we are paying year end related payments such as taxes and year end compensation related items, annual insurance payments and, and, and the like.

我們看到季節性收入較低，但我們還要支付年終相關費用，如稅金和年終補償相關項目、年度保險費等。

And then in addition, as you mentioned, our other liabilities that the end of the year were higher, but that had a lot to do with or partly I should say to do with those cost reduction programs and accruals.

此外，正如您所提到的，我們年底的其他負債較高，但這與那些成本削減計劃和應計項目有很大關係，或者我應該說部分與這些成本削減計劃和應計項目有關。

You noted earlier.

您之前就注意到了。

So, I do expect as the year progresses that our working capital improves and that improves cash flow and, and you see that seasonally, that's not just that's, not just something specific to this year that's typical for us.

因此，我確實預計，隨著時間的推移，我們的營運資本將得到改善，現金流也將得到改善，而且，從季節性來看，這不僅僅是今年特有的現象，對我們來說也是典型的現象。

Okay, but the cash flow from operating activities, do you think that it will be similar?

好的，但是經營活動產生的現金流，您認為會相似嗎？

You are breaking, you broke up a little bit there, Steven.

你崩潰了，你有點崩潰了，史蒂文。

Christine, I think you could move on to the next question.

克莉絲汀，我想你可以繼續回答下一個問題。

Thank you.

謝謝。

Our next question comes from the line of [Ethan Paas] with Bank of America.

我們的下一個問題來自美國銀行的 [Ethan Paas]。

Please proceed with your question.

請繼續回答您的問題。

Good morning.

早安.

Just a few questions on the capital structure here, I guess first off which debt would you look to pay?

這裡只關於資本結構幾個問題，我想先想償還哪筆債務？

Look to repay with the SGK proceeds?

希望使用 SGK 收益來償還嗎？

Would you look at maybe the revolver and how much is currently drawn as of today or quarter end.

您是否會查看循環信貸以及截至今日或季度末已提取了多少錢。

So, Ethan, so, yes, I mean our initially and it, and, and obviously it's dependent on the timing of the closing.

所以，伊森，是的，我的意思是我們最初和它，而且，顯然它取決於結束的時間。

But our expectation is that we are going to be closing the closing of the SGK transaction mid year.

但我們預計將在年中完成 SGK 交易。

So, my expectation is that we will take the substantial amount of those proceeds and immediately applied to our revolver debt.

因此，我的預期是，我們將拿出這些收益的大部分並立即用於償還循環債務。

And, when I say substantially, I mean, we do expect a little bit of tax leakage but really not a significant amount.

當我說「大量」時，我的意思是，我們確實預計會有一點稅收流失，但實際上數量並不大。

So, a substantial portion of that will go to debt.

因此，其中很大一部分將用於償還債務。

One of the things that I think it's important to understand and I will take you back to, last year last year.

我認為需要了解的一件事是去年，也是去年。

We refinanced our bonds and we refinanced during a tough period of time if you recall during that period of time.

我們對債券進行了再融資，如果你還記得的話，我們在那段艱難時期進行了再融資。

And, and since then, we have been under the overhang of the litigation, well, that litigation overhang, you know, caused higher than higher rates than, than we thought we could have, we could have achieved in normal market conditions.

自那時起，我們一直處於訴訟的陰影之下，你知道，訴訟的陰影導致的利率比我們在正常市場條件下認為可以達到的利率還要高。

So, what we did was we set ourselves up instead of a typical five, seven or eight year bond, we set up a short term, shorter term bond, three year bond with a one year, no call.

因此，我們所做的是，我們不設立典型的五年期、七年期或八年期債券，而是設立短期債券，即期限較短的三年期債券，期限為一年，無需贖回。

So, that one year no call expires here at the end of September.

因此，這一年不召回條款將於九月底到期。

And the interest rate on those bonds are eight and five eight, that's the coupon rate.

這些債券的利率為八比五八，這就是票面利率。

So, we expect to be taking a hard look at that when that no call expires.

因此，我們預計，當無呼叫到期時，我們會認真考慮這一點。

With those proceeds from the SGK transaction.

利用 SGK 交易的收益。

That's very helpful.

這非常有幫助。

And that kind of leads me into my next question.

這引出了我的下一個問題。

How are you thinking about the first call price day versus waiting to, waiting for the bond to step down to par?

您如何看待第一個贖回價格日，而不是等待債券降至面額？

Late next year?

明年晚些時候？

I believe there it would be callable later this year at like [104] and change.

我相信今年稍後它的贖回價會達到[104]左右。

Yeah, Ethan, that's, an analysis we'll do at the time.

是的，伊森，這是我們當時要做的分析。

But like I said before, that's obviously something that's on our radar.

但就像我之前說過的，這顯然是我們關注的事情。

And when we set up the bond, we set it up to be short term, we set it up to be callable in a shorter term.

當我們發行債券時，我們將其設定為短期債券，我們將其設定為可在較短期限內贖回。

So, that's something that we will take a look at.

所以，這是我們要研究的事情。

Yeah, it's, I mean, it's important for the market to understand.

是的，我的意思是，讓市場了解這一點很重要。

We knew this SGK transaction was in the works.

我們知道 SGK 交易正在進行中。

We also knew about the Tesla litigation as well.

我們也了解特斯拉的訴訟。

We anticipated a closing on SGK during that time period.

我們預計 SGK 將在那段時間內關閉。

So, it was intentional to have a one year call.

因此，我們有意進行一年一次的通話。

Very helpful and then finally, last one for me.

非常有幫助，對我來說也是最後一個。

So, post SGK, you expect net leverage of sub three times.

因此，在 SGK 之後，您預計淨槓桿率將低於三倍。

Do you have a leverage target in mind?

您心中是否有一個槓桿目標？

And maybe a timeline for when you think you would achieve that.

也許還有一個您認為可以實現這一目標的時間表。

Ethan Yeah, our, publicly stated long term target is three or less on a leverage ratio.

伊森 是的，我們公開宣布的長期目標是槓桿率不超過 3。

So, this this transaction, we expect that to accomplish that, but we also expect to, to continue with a delivering emphasis, post that.

因此，我們期望這筆交易能夠實現這一目標，但我們也期望在那之後繼續強調交付重點。

Very helpful.

非常有幫助。

Thank you.

謝謝。

You are welcome.

不客氣。

Mr Nicola.

尼古拉先生。

We have no further questions at this time.

目前我們沒有其他問題。

I would like to turn the floor back over to you for closing comments.

我想把發言權交還給您，請您發表最後評論。

Thank you, Christine, and thank you everyone for participating this morning and have a great day.

謝謝你，克莉絲汀，也謝謝大家今天早上的參與，祝大家有個愉快的一天。

(Operator Instructions)

（操作員指令）