Matthews International Corp (MATW) 2025 Q2 法說會逐字稿

Greetings and welcome to the Matthews International Second quarter fiscal 2025 financial results.

問候並歡迎來到馬修斯國際 2025 財年第二季財務業績。

(Operator Instructions)

（操作員指示）

As a reminder, this conference is being recorded. It is now my pleasure to introduce Steven Nicola, Chief Financial Officer. Please go ahead.

提醒一下，本次會議正在錄製中。現在我很高興介紹財務長史蒂文·尼古拉。請繼續。

All right, good morning. Thank you, Paul. I'm Steve Nicola, Chief Financial Officer of Matthews, and with me today is Joe Bartolacci, our company's President and Chief Executive Officer.

好的，早安。謝謝你，保羅。我是馬修斯 (Matthews) 首席財務官史蒂夫·尼古拉 (Steve Nicola)，今天與我一起的是我們公司總裁兼首席執行官喬·巴托拉奇 (Joe 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 investor section last night. The presentation for our call can also be accessed in the investor section of the website under presentations.

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。您也可以在網站的投資者部分的簡報中查看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 1,995. 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 10k and other periodic filings with the SEC.

與本次討論有關的任何前瞻性陳述均依據 1995 年《私人證券訴訟改革法案》的安全港條款作出。可能導致公司業績與今天討論的業績不同的因素已在公司 10k 表格年度報告和向美國證券交易委員會提交的其他定期文件中列出。

In addition, we will be discussing non-GAAP financial metrics and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics. In connection with any forward-looking statements and non-GAAP financial information, please read the disclaimer included in today's presentation materials located on our website.

此外，我們將討論非 GAAP 財務指標，並鼓勵您在考慮這些指標時仔細閱讀我們的揭露和對帳表。對於任何前瞻性陳述和非公認會計準則財務信息，請閱讀我們網站上今天的演示材料中包含的免責聲明。

Now I will turn the call over to Joe.

現在我將把電話轉給喬。

Thank you, Steve. Good morning.

謝謝你，史蒂夫。早安.

Let me begin today's call by providing an update on our energy solutions business and the recent developments impacting its growth. As you are aware, we recently firmly established our ability and right to market, offer and sell dry battery electrode technology solutions to third parties.

今天的電話會議首先讓我介紹我們的能源解決方案業務的最新情況以及影響其成長的最新發展。如您所知，我們最近已牢固確立了向第三方行銷、提供和銷售乾電池電極技術解決方案的能力和權利。

However, during certain intervals of our dispute regarding our ownership rights with Tesla, we are intentionally cautious in our efforts to promote our technology to third parties other than Tesla.

然而，在我們與特斯拉就所有權發生爭議的某些時期，我們有意謹慎地向特斯拉以外的第三方推廣我們的技術。

As we discussed in our last earnings call, we now have clarity regarding our right to sell DBE solutions, and we have built an extensive and highly valuable portfolio of intellectual property, technology and know-how related to the critical components of the dry battery electrode offering.

正如我們在上次收益電話會議上所討論的那樣，我們現在明確了銷售 DBE 解決方案的權利，並且我們已經建立了與乾電池電極產品關鍵組件相關的廣泛且極具價值的智慧財產權、技術和專有技術組合。

With that said, I can share some positive news from the time that we reopened our doors for business in mid-February; after receiving the desired clarity on our ownership rights, we have re-engaged with multiple battery manufacturers and auto OEMs and have issued quotes in excess of $100 million.

話雖如此，我可以分享一些積極的消息，從我們 2 月中旬重新開業以來；在明確了我們的所有權後，我們重新與多家電池製造商和汽車原始設備製造商接洽，並發出了超過 1 億美元的報價。

These opportunities represent DBE and market solutions comprised of a mix of our proprietary calendaring equipment and primer coding machines used in the electrode production process.

這些機會代表了 DBE 和市場解決方案，包括我們在電極生產過程中使用的專有壓延設備和底漆編碼機的組合。

In the pipeline, mass production lines represent the bulk of the total and interest from the equip for our equipment is coming from major geographies for EV battery production, including South Korea, Europe and North America.

在管道中，大規模生產線佔總量的大部分，對我們設備的興趣來自電動車電池生產的主要地區，包括韓國、歐洲和北美。

This activity confirms that the demand for our innovative engineering solutions that enable cost efficient production of EV batteries is significant and continues to create opportunities for Matthews. It is important to note, however, that the sales lead time in this industry is long.

這項活動證實，市場對我們創新工程解決方案的需求龐大，這些解決方案能夠實現電動車電池的成本效益生產，並將繼續為馬修斯創造機會。但值得注意的是，該產業的銷售交付週期很長。

The investments in new Gigafactories which contemplate using our equipment are very large and require extensive planning. Therefore, in order to expand the market opportunity for our equipment, we are building solutions that allow existing facilities to retrofit their current wet process or expand existing production technology with our dry battery electrode solution. This retrofit, we believe, can open up material opportunities beyond the markets only for new Gigafactories.

考慮使用我們設備的新超級工廠的投資非常大，需要廣泛的規劃。因此，為了擴大我們設備的市場機會，我們正在建立解決方案，使現有設施能夠利用我們的乾電池電極解決方案來改造其當前的濕式製程或擴展現有的生產技術。我們相信，此次改造可以為新的超級工廠市場之外開闢新的材料機會。

Moving on to SGK news, as we announced earlier this month, all regulatory approvals for the transaction have been secured, and we expect to close the transaction any day now. As we reported on last quarter's earnings calls, we will receive $350 million in consideration upfront, including $250 million in cash, the retention of receivables totaling about $50 million which will be used to pay back our securitization, and a $50 million preferred instrument which we hope to convert to cash in 12 months to 18 months.

繼續討論 SGK 新聞，正如我們本月早些時候宣布的那樣，該交易的所有監管部門批准均已獲得，我們預計該交易將在近期完成。正如我們在上個季度的收益電話會議上所報告的那樣，我們將預先收到 3.5 億美元的對價，其中包括 2.5 億美元現金、總額約為 5000 萬美元的應收賬款保留金（將用於償還我們的證券化資產）以及 5000 萬美元的優先工具（我們希望在 12 個月到 18 個月內將其轉換為現金）。

The cash component will be primarily applied to reducing debt. We are also proceeding well with the divesture of our remaining German SGK assets that were not merged with SGS. This transaction is expected to close before fiscal year end. Together with the initial consideration for SGK, we expect total initial consideration from the sale of our brand solution segment to approach $400 million.

現金部分將主要用於減少債務。我們也正在順利剝離未與 SGS 合併的剩餘德國 SGK 資產。預計交易將在財年結束前完成。加上 SGK 的初始對價，我們預計出售品牌解決方案部門的總初始對價將接近 4 億美元。

In addition to the initial consideration for SGK, we received a 40% interest in the combined SGK, SGS entity. This entity will start out with approximately $900 million in revenue and about $100 million of EBITDA and $300 million of bank debt.

除了 SGK 的初始對價外，我們還獲得了 SGK 和 SGS 合併實體 40% 的權益。該實體最初將擁有約 9 億美元的收入、約 1 億美元的 EBITDA 和 3 億美元的銀行債務。

Our current projections expect over $50 million of synergy to be achieved post integration, at which time we intend to exit our ownership. Our current expectation is that we will receive an additional $300 million from this investment as well.

我們目前的預測是整合後將實現超過 5000 萬美元的協同效應，屆時我們打算退出所有權。我們目前的預期是，我們還將從這項投資中獲得額外的 3 億美元。

Also, of note during the quarter, our warehouse automation business entered into an agreement with Teradyne Incorporated to market autonomous robotic solutions for the next generation of warehouse automation. This partnership uniquely positions us to promote autonomous vehicles or robotic picking solutions, which will be controlled by our highly recognized warehouse execution software.

此外，值得注意的是，在本季度，我們的倉庫自動化業務與 Teradyne Incorporated 達成協議，為下一代倉庫自動化推廣自主機器人解決方案。此次合作使我們能夠以獨特的方式推廣自動駕駛汽車或機器人揀選解決方案，這些解決方案將由我們備受認可的倉庫執行軟體控制。

Together, we will offer further cost and efficiency enhancements to new and existing warehouses while again distinguishing our software as a market leader in the warehouse execution software space.

我們將共同為新建和現有倉庫提供進一步的成本和效率增強，同時再次使我們的軟體成為倉庫執行軟體領域的市場領導者。

As for our second quarter results, consolidated sales came in generally as expected, but lower on a year over year basis, primarily due to the challenge faced by our energy solutions business. Overall, we reported $428 million in consolidated sales in the fiscal 2025 second quarters compared to $471 million in the second quarter of 2024.

至於我們的第二季業績，綜合銷售額基本上符合預期，但年比有所下降，這主要是由於我們的能源解決方案業務面臨的挑戰。總體而言，我們報告 2025 財年第二季的綜合銷售額為 4.28 億美元，而 2024 年第二季的綜合銷售額為 4.71 億美元。

Adjusted EBITDA over the second quarter of '25 was higher than anticipated and primarily reflected the benefits gained from our recent cost reduction efforts. Adjusted EBITDA that was $51.4 million in the second quarter of 2025 compared to $56.8 million in the 2024 corresponding period.

25 年第二季的調整後 EBITDA 高於預期，主要反映了我們最近的成本削減努力所獲得的好處。2025 年第二季調整後 EBITDA 為 5,140 萬美元，而 2024 年同期為 5,680 萬美元。

With respect to the businesses, SGK reported another solid quarter highlighted by its best sales quarter since the fourth quarter of fiscal '22. The strong performance was primarily driven by new account growth in the Americas and some benefit from price realization.

就業務而言，SGK 報告了另一個穩健的季度，其亮點是自 2022 財年第四季以來最好的銷售季度。強勁的業績主要得益於美洲新帳戶的成長以及價格實現帶來的部分收益。

We believe that the business is well positioned to reach a higher level of performance once coupled with SGS, giving each business's complementary assets and anticipated synergies. Integrating some of these businesses such as the respective Flexo platforms will enable the new entity to take full advantage of scale and grow.

我們相信，一旦與 SGS 合併，該業務將能夠達到更高的績效水平，從而實現每項業務的互補資產和預期的協同效應。整合其中一些業務（例如各自的 Flexo 平台）將使新實體能夠充分利用規模並實現成長。

Additionally, the new entities combined creative business, which will focus on packaging, e-commerce and other brand-related marketing efforts, will generate approximately $200 million in revenue and will be a formidable competitor to other agencies given its size, geographic breadth, and access to low costs support.

此外，新實體合併後的創意業務將專注於包裝、電子商務和其他品牌相關的行銷工作，將產生約 2 億美元的收入，並憑藉其規模、地理範圍和低成本支持，成為其他機構的強大競爭對手。

Moving on to industrial technologies, let me add some color to our energy solutions performance in the quarter. We still have a backlog of about $70 million in equipment. We're also working on a number of opportunities which will involve our innovative solutions as applied towards solid state battery development and energy grid storage. Grid storage represents the fastest growing area for battery development with a significant available market for our innovative solutions which is in addition to the market opportunity for electric vehicles.

談到工業技術，讓我為我們本季的能源解決方案表現補充一些資訊。我們仍有價值約 7,000 萬美元的設備積壓。我們也正在研究一些機會，這些機會將涉及我們應用於固態電池開發和電網儲存的創新解決方案。電網儲存是電池開發中成長最快的領域，除了電動車的市場機會外，我們的創新解決方案還具有龐大的可用市場。

Moving on to warehouse automation, sales in the second quarter were lower year over year, reflecting slow market recovery. However, we saw encouraging signs during the quarter with very strong order intake indicative of a turn in the market, which we expect will be realized in the second half of this fiscal year. Those signs included an active quoting market and record orders from prominent brands resulting in a backlog that has returned to healthy levels.

談到倉庫自動化，第二季的銷售額較去年同期下降，反映出市場復甦緩慢。然而，我們在本季看到了令人鼓舞的跡象，非常強勁的訂單量表明市場正在好轉，我們預計這將在本財年下半年實現。這些跡象包括活躍的報價市場和來自知名品牌的創紀錄訂單，導致積壓訂單已恢復到健康水平。

Product identification reported relatively flat year over year results for the second quarter of 2025, and we remain on track with our new product launch for later this summer. Memorialization revenues were down by 7% in the second quarter compared to the prior year, primarily due to volume declines in our bronze and grand businesses.

產品識別報告稱，2025 年第二季的業績與去年同期相比持平，我們仍將按計劃於今年夏季晚些時候推出新產品。第二季紀念收入與去年同期相比下降了 7%，主要原因是我們的青銅和大型業務銷量下降。

The primary driver of the lower revenue was the declining casket of deaths during the quarter and the closure of our UK cremation facility earlier this year. We did receive benefit from pricing actions, but not enough to offset these events.

收入下降的主要原因是本季度死亡棺材數量的減少以及我們今年早些時候關閉了英國火葬設施。我們確實從定價行動中獲益，但不足以抵銷這些事件。

As for our balance sheet, our debt position increased modestly during the quarter, but as I highlighted earlier in our discussion, we expect to apply proceeds from the SDK transaction to our revolvers. Additionally, given the current levels where our shares are trading, we believe it makes sense to utilize a portion of the proceeds towards repurchasing our stock. Note also that our bonds are not callable until September. At that time, we will evaluate whether or not to address those notes contingent on market conditions.

至於我們的資產負債表，我們的債務狀況在本季度略有增加，但正如我在先前的討論中所強調的那樣，我們預計 SDK 交易的收益將用於我們的循環信貸。此外，考慮到我們股票的當前交易水平，我們認為利用部分收益來回購股票是合理的。也要注意，我們的債券要到九月才能贖回。屆時，我們將根據市場狀況評估是否處理這些票據。

Regarding tariffs, we believe that we have put actions in place to mitigate the impact of tariffs as they currently are contemplated. New sourcing and pricing in areas of the business with the most impact should manage the consequences, and we should see very little impact in our fiscal '25 results.

關於關稅，我們認為我們已經採取行動來減輕目前正在考慮的關稅的影響。對受影響最大的業務領域的新採購和定價應該能夠控制後果，我們應該會看到對 25 財年業績的影響非常小。

Looking to the balance of the year, we expect another stable year results from our memorialization business. Based on recent order rates, we expect our warehouse automation segment to show improved results in the second half of the year as that market begins to turn.

展望今年的平衡，我們預期紀念業務將再創穩定業績。根據最近的訂單率，隨著市場開始轉變，我們預計我們的倉庫自動化部門將在下半年取得更好的表現。

Additionally, our cost reduction initiative is ongoing and on track to generate cost savings in excess of our initial projection of $50 million with regard to SGK, as I've stated, we expect the transaction to close soon. Therefore, assuming five months of our proportional ownership of SDK SGS, we have updated our adjusted even that guidance to at least $190 million. It is important to note, however, that our new guidance of $190 million would be equal to our original guidance of $205 million but for the sale of SGK.

此外，我們的成本削減計劃正在進行中，並有望為 SGK 節省超過我們最初預測的 5000 萬美元的成本，正如我所說，我們預計交易將很快完成。因此，假設我們對 SDK SGS 的比例所有權為五個月，我們已將調整後的指導價更新為至少 1.9 億美元。然而，值得注意的是，如果不出售 SGK，我們的新指導價 1.9 億美元將等於我們原來的指導價 2.05 億美元。

Finally, regarding our strategic initiatives that we began last several quarters ago, it continues as we believe that the company's intrinsic value is significantly higher than where the stock currently trades. We are committed to finding ways to unlock shareholder value through this process and all possibilities are being considered.

最後，關於我們幾個季度前開始的策略性舉措，我們將繼續實施，因為我們相信公司的內在價值遠高於股票目前的交易價格。我們致力於透過這個過程尋找釋放股東價值的方法，並正在考慮所有可能性。

Unfortunately, current market turbulence has made our efforts somewhat more challenging, but we hope that the markets will calm in the near future, and we expect our efforts will be successful like we did with SGK, we are determined to prudently highlight the fair value of our businesses, and we are sure that we will.

不幸的是，當前的市場動盪使我們的努力更具挑戰性，但我們希望市場在不久的將來能夠平靜下來，我們預計我們的努力將取得成功，就像我們對 SGK 所做的那樣，我們決心謹慎地強調我們業務的公平價值，我們相信我們會的。

Now I'll turn it over to Steve to deliver the financial for the quarter's results.

現在我將把報告交給史蒂夫，讓他報告本季的財務表現。

Thank you, Joe, for the Financial Review. Let's begin with slide 7.

喬，謝謝你的《金融評論》。讓我們從第 7 張投影片開始。

For the fiscal 2025 second quarter, the company reported a net loss of $8.9 million or $0.29 per share, compared to net income of $9 million or $0.29 per share a year ago.

2025 財年第二季度，該公司報告淨虧損 890 萬美元或每股 0.29 美元，而去年同期淨收入為 900 萬美元或每股 0.29 美元。

On a non-GAAP adjusted basis, net income attributable to the company for the current quarter was $10.5 million or $0.34 per share compared to $21.8 million or $0.69 per share last year. The decline primarily reflected the impacts of lower adjusted EBITDA, which I will discuss in a few minutes, higher interest expense for the current quarter, and an unfavorable tax impact from losses in our German operations.

以非 GAAP 調整後計算，本季公司淨利為 1,050 萬美元，即每股 0.34 美元，而去年同期為 2,180 萬美元，即每股 0.69 美元。下降主要反映了調整後 EBITDA 降低的影響（我將在幾分鐘內討論）、本季利息支出增加以及德國業務損失帶來的不利稅收影響。

Consolidated sales for the fiscal 2025 second quarter were $427.6 million compared to $471.2 million a year ago. The decline primarily reflected lower sales for the industrial technology segment, mainly reflecting lower engineering sales.

2025 財年第二季的綜合銷售額為 4.276 億美元，去年同期為 4.712 億美元。下降主要反映了工業技術部門銷售額的下降，主要反映了工程銷售額的下降。

Additionally, sales for the memorialization segment declined compared to, primarily due to lower unit volumes. Estimated US casketed deaths declined from the same quarter a year ago. Sales for the SGK brand solution segment were modestly higher than the 2nd quarter last year, primarily reflecting increases in the US and Asia Pacific markets.

此外，紀念部門的銷售額較去年同期下降，主要原因是單位數量較低。據估計，美國棺材內死亡人數與去年同期相比有所下降。SGK品牌解決方案部門的銷售額略高於去年第二季度，主要反映了美國和亞太市場的成長。

Consolidated adjusted EBITDA for the fiscal 2025 second quarter was $51.4 million compared to $56.8 million a year ago. The decrease primarily reflected declines in the industrial technologies and memorialization segments. Adjusted EBITDA for the SGK brand solution segment increased modestly compared to last year. Please see the reconciliations of adjusted EBITDA and non-GAAP adjusted earnings per share provided in our earnings release.

2025 財年第二季的綜合調整後 EBITDA 為 5,140 萬美元，而去年同期為 5,680 萬美元。這一下降主要反映了工業技術和紀念領域的衰退。SGK 品牌解決方案部門的調整後 EBITDA 與去年相比略有成長。請參閱我們的收益報告中提供的調整後 EBITDA 和非 GAAP 調整後每股收益的對帳。

Please move to slide 8 to review our segment results. Sales for the memorialization segment for the fiscal 2025 second quarter were $205.6 million compared to $222.2 million for the same quarter a year ago. Sales volumes for bronze and granite cemetery memorials and caskets were lower for the quarter compared to last year, primarily resulting from lower US casket of deaths. Cremation equipment sales were also lower for the quarter.

請移至投影片 8 查看我們的細分結果。2025 財年第二季紀念部門的銷售額為 2.056 億美元，去年同期為 2.222 億美元。本季青銅和花崗岩墓地紀念碑和棺材的銷售量與去年同期相比有所下降，主要原因是美國死亡棺材數量減少。本季火葬設備銷量也有所下降。

In addition, the recent disposal of our unprofitable cremation and incineration equipment operations in Europe unfavorably impacted sales for the current quarter. These declines were partially offset by improved price realization. Changes in foreign currency rates had an unfavorable impact of $422,000 on the segment's current quarter sales compared to a year ago.

此外，我們最近處置了歐洲無利可圖的火葬和焚化設備業務，對本季的銷售產生了不利影響。這些下降被價格實現的提高部分抵消。與去年同期相比，外匯匯率變動對該部門本季銷售額產生了 422,000 美元的不利影響。

Memorialization segment adjusted EBITDA for their current quarter was $45 million compared to $46.6 million for the same quarter last year. The decrease primarily resulted from the impact of lower sales and increases in material and labor-related costs. These increases were partially offset by the favorable impacts of improved pricing, benefits from cost savings initiatives, and the disposal of the European operations which were generating operating losses.

紀念部門本季調整後的 EBITDA 為 4,500 萬美元，去年同期為 4,660 萬美元。下降主要由於銷售額下降以及材料和勞動力相關成本增加的影響。這些成長被價格改善、成本節約措施帶來的好處以及產生經營虧損的歐洲業務的處置等有利影響部分抵消。

Please move to slide 9. Sales for the industrial technology segment for the fiscal 2025 second quarter were $80.8 million compared to $116.1 million a year ago. The decline mainly resulted from lower sales for the segment's engineering business, principally energy storage solutions sales.

請移至投影片 9。2025 財年第二季工業技術部門的銷售額為 8,080 萬美元，去年同期為 1.161 億美元。下降的主要原因是該部門工程業務（主要是儲能解決方案）的銷售額下降。

Warehouse automation sales were also lower for the quarter. In addition, the shutdown of our unprofitable RNS automotive business. Which was acquired in connection with the Olbrich acquisition in 2022, contributed to the segment's year over year sales decline.

本季倉庫自動化銷售額也有所下降。此外，我們也關閉了無利可圖的 RNS 汽車業務。該公司於 2022 年收購 Olbrich 時獲得此項收購，導致該部門銷售額年減。

Changes in currency rates had an unfavorable impact of $1.5 million on the segment's current quarter sales compared to a year ago. Adjusted EBITDA for the industrial technology segment for the current quarter was $6 million compared to $10 million for the same quarter a year ago. The decrease primarily resulted from the segment's sales decline offset partially by the benefits of recent cost reduction actions.

與去年同期相比，匯率變動對該部門本季的銷售額產生了 150 萬美元的不利影響。本季工業技術部門的調整後 EBITDA 為 600 萬美元，而去年同期為 1,000 萬美元。下降的主要原因是該部門銷售額的下降，但近期成本削減措施帶來的好處部分抵消了下降。

Please move to slide 10. Sales for the SGK brand solution segment increased to $141.2 million for the quarter end of March 31, 2025 compared to $132.9 million a year ago. The increase primarily reflected higher merchandizing sales and increases in the US and Asia Pacific brand markets. European packaging cylinders and brand sales declined from a year ago.

請移至第 10 張投影片。截至 2025 年 3 月 31 日的季度，SGK 品牌解決方案部門的銷售額增至 1.412 億美元，而去年同期為 1.329 億美元。這一成長主要反映了商品銷售額的提高以及美國和亞太品牌市場的成長。歐洲包裝圓筒和品牌的銷售量較去年同期下降。

Currency rates had an unfavorable impact of $2.5 million on the segment's current quarter sales compared to a year ago. Adjusted EBITDA for the SGK brand solution segment was $15.6 million for the current quarter compared to $15.4 million a year ago. The increase primarily reflected the benefits of higher sales, improved pricing, and the segment's recent cost reduction actions offset partially by the impacts of higher labor-related costs.

與去年同期相比，匯率對該部門本季的銷售額產生了 250 萬美元的不利影響。本季 SGK 品牌解決方案部門的調整後 EBITDA 為 1,560 萬美元，而去年同期為 1,540 萬美元。這一成長主要反映了銷售成長、定價改善以及該部門近期的成本削減措施帶來的好處，但部分抵消了勞動力相關成本上升的影響。

Please move to slide 10. Cash flow provided by operating activities for the fiscal 2025 second quarter was $6.3 million compared to $57.1 million a year ago. Costs in connection with the SGK transaction, the contested proxy, and our restructuring actions were significant contributors to the decrease from a year ago. On a year-to-date basis, cash utilized in operating activities was $18.7 million for the current year compared with cash provided by operating activities of $29.8 million last year.

請移至第 10 張投影片。2025 財年第二季經營活動提供的現金流量為 630 萬美元，去年同期為 5,710 萬美元。與 SGK 交易、有爭議的代理商以及我們的重組行動相關的成本是導致成本較去年同期下降的重要原因。從年初至今，本年度經營活動所用現金為 1,870 萬美元，而去年經營活動提供的現金為 2,980 萬美元。

In addition to the current quarter items, the year-to-date change also reflected payments in connection with litigation costs. Outstanding debt was $822 million at March 31, 2025 compared to $809 million at December 31, 2024. The company's net debt, which represents outstanding debt less cash, was $782 million at the end of the current quarter compared to $776 million at December 31, 2024. Upon the closing of the SGK transaction, we expect a significant reduction in debt.

除了本季的項目外，年初至今的變化也反映了與訴訟費用相關的支付。截至 2025 年 3 月 31 日，未償還債務為 8.22 億美元，而 2024 年 12 月 31 日為 8.09 億美元。該公司的淨債務（即未償債務減去現金）在本季末為 7.82 億美元，而 2024 年 12 月 31 日為 7.76 億美元。SGK 交易完成後，我們預計債務將大幅減少。

For the fiscal 2025 second quarter, the company purchased approximately 5,900 shares under its stock repurchase program. These purchases were related to withholding taxes on equity compensation vesting as we remained primarily focused on debt. However, as we previously indicated, with the stock price at its current levels, we intend to use some of the SGK proceeds for stock repurchases.

2025財年第二季度，該公司根據股票回購計畫購買了約5,900股。這些購買與股權補償歸屬的預扣稅有關，因為我們仍然主要關注債務。然而，正如我們之前指出的，鑑於股價處於當前水平，我們打算使用部分 SGK 收益來回購股票。

As we previously disclosed, we recently initiated cost reduction programs that span several of our business units and corporate functions. These programs are expected to result in annual consolidated savings up to $50 million and we currently remain on track to achieve and potentially exceed this target. The most significant portions of the estimated savings will be from our engineering and tooling operations in Europe and our general and administrative costs.

正如我們之前所揭露的，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。這些項目預計每年將帶來高達 5000 萬美元的綜合節省，目前我們仍有望實現甚至超過這一目標。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和行政成本。

With respect to our fiscal 2025 earnings expectations, we previously projected adjusted EBITDA of at least $205 million for fiscal 2025, which contemplated the SGK brand solution segment in our consolidated results for the full year.

關於我們 2025 財年的獲利預期，我們先前預計 2025 財年的調整後 EBITDA 至少為 2.05 億美元，其中考慮到了我們全年綜合業績中的 SGK 品牌解決方案部門。

Based on an SGK transaction closing date in early May. Our pro forma consolidated adjusted EBITDA projection for fiscal 2025 has been updated to at least $190 million. This projection is subject to adjustment based on the actual closing date. This projection replaces the full results of SGK for the remaining five months of fiscal 2025 with a pro forma projection for our 40% interest in the new entity.

根據 5 月初 SGK 交易結束日期。我們對 2025 財年的預測合併調整後 EBITDA 已更新為至少 1.9 億美元。此預測將根據實際截止日期進行調整。該預測將以我們對新實體 40% 權益的預測來取代 SGK 在 2025 財年剩餘五個月的全部表現。

The updated amount maintains our original projection of the $205 million for the year modified only for the pro forma impact of the SGK transaction. Please note that as a result of the integration process of the new entity and transition to its own stand-alone reporting systems, we plan to report our 40% interest in the earnings of the new entity on a one quarter lag. As a result, our actual reported adjusted EBITDA will differ from pro forma results during this period.

更新後的金額維持了我們最初對年度 2.05 億美元的預測，僅根據 SGK 交易的備考影響進行了修改。請注意，由於新實體的整合過程以及向其獨立報告系統的過渡，我們計劃以滯後一個季度的方式報告我們在新實體收益中的 40% 的權益。因此，我們實際報告的調整後 EBITDA 將與此期間的備考結果有所不同。

Finally, the board declared yesterday a quarterly dividend of $0.25 per share on the company's common stock. The dividend is payable May 26, 2025 to stockholders of record May 12, 2025.

最後，董事會昨日宣佈公司普通股季度股利為每股 0.25 美元。股利將於 2025 年 5 月 26 日支付給 2025 年 5 月 12 日登記在冊的股東。

This concludes the Financial Review, and we will now open the call for questions.

財務審查到此結束，我們現在開始提問。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

Daniel Moore, CJS Securities Inc.

丹尼爾·摩爾（Daniel Moore），CJS證券公司

Thank you. Good morning, Joe. Good morning, Steve. Start with energy storage. How does the 100 million plus in customer quotes since early February compare to, where we were this time for the same period last year and you touched on it in the prepared remarks, but where are you seeing the most renewed interest, I assume that's all outside of Tesla but, by geography and market, where you're seeing customers come back to you.

謝謝。早安，喬。早安，史蒂夫。從儲能開始。自 2 月初以來，我們收到的 1 億多名客戶報價與去年同期相比如何？您在準備好的發言中也提到了這一點，但您在哪裡看到了最多的新興趣？我認為這都在特斯拉之外，但是，根據地理和市場，您看到客戶在哪裡回到您身邊。

A lot of questions in there, Dan. Good morning. So, let me kind of parse through and if I miss something, let me please re-ask. So, as it relates to a year ago, you noticed in my comments I said we were relatively out of the market from a marketing standpoint a year ago. So, I would tell you that the 100 million plus of quotes that we have out today is dramatically higher than the same period last year, there was, I mean, there was no time other than when we were dealing with Tesla were we having quote of that significance. So, this is all very good news for us and frankly shows what we think is the interest in our solution.

這裡面有很多問題，丹。早安.因此，讓我仔細分析一下，如果我遺漏了什麼，請讓我重新詢問。因此，與一年前相比，您會注意到，我在評論中說過，從行銷的角度來看，一年前我們相對脫離了市場。所以，我想告訴你，我們今天給出的 1 億多個報價比去年同期大幅增加，我的意思是，除了我們與特斯拉打交道時，沒有其他時候我們能得到如此重要的報價。所以，這對我們來說都是非常好的消息，坦率地表明了我們認為對我們的解決方案的興趣。

Secondly, where is it coming from. Without giving names, it, but you can pick the geographies. It's South Korea, it's, which is a large part of it. I mean, the battery operators in that part of the world are extremely interested in this solution. We have several OEMs in North America and in Europe also talking to us, but we also have a growing interest in what we call the energy, the grid storage side of this business as people are starting to look for expansions into other areas for the use of electric storage devices.

其次，它從哪裡來？無需提供名稱，但您可以選擇地理位置。其中很大一部分是韓國。我的意思是，該地區的電池運營商對這個解決方案非常感興趣。北美和歐洲的幾家原始設備製造商也在與我們洽談，但我們對所謂的能源、電網儲存業務的興趣也日益濃厚，因為人們開始尋求將電力儲存設備擴展到其他領域。

What is important to understand, and we've been trying to emphasize this over the last several quarters. This particular solution, what dry battery electrode is applicable to all forms of battery storage, whether it's a cell phone that you're holding in your hand or whether it's a flashlight or an automobile or energy storage device, it's applicable to all those technologies. So, we're only scratching the surface of where this this opportunity can go.

理解這一點很重要，過去幾季我們一直在努力強調這一點。這種特殊的解決方案，即乾電池電極適用於所有形式的電池存儲，無論是您手中拿著的手機，還是手電筒、汽車或儲能設備，它都適用於所有這些技術。因此，我們對這機會的前景還只是略知皮毛。

Alright, that does cover a lot of those. Thank you.

好的，這確實涵蓋了很多內容。謝謝。

Memorialization just maybe talk about the cadence of year over year, declines over the past couple of months and what are your expectations for organic growth overall for the for the segment, fiscal Q3 and the balance of the year.

紀念活動也許只是談論一下同比的節奏、過去幾個月的下滑情況，以及您對該部門、第三財季和全年整體有機增長的預期。

Dan, I'll start with that and I'll let you finish the question, but one of the other factors in the year over year comparability was we did have another quarter where we were weak the comparable last year included higher than normal granite related sales as a year ago in this past quarter, we were still working off significant backlogs from the pandemic. So, that was one other comparable that contributed to the reported decline year over year.

丹，我先從這個開始，讓你完成這個問題，但同比變化的另一個因素是，我們確實有一個季度表現疲軟，去年同期的花崗岩相關銷售額高於正常水平，因為在上個季度，我們仍在處理疫情造成的大量積壓訂單。因此，這是導致報告的同比下降的另一個可比較因素。

Yes, I would tell you that the reality is we saw some normalization, it continued normalization on a comparative basis over prior years. So, we saw higher death rates than we would have expected last year, and I think we're seeing a little bit of that pull back this quarter.

是的，我會告訴你，事實上我們看到了一些正常化，與前幾年相比，它在比較的基礎上繼續正常化。因此，我們看到的死亡率高於我們去年預期的死亡率，我認為本季死亡率會略有下降。

Okay, one more and I'll jump back, and you just remind me, Steve, the cost reduction action $50 million, and I think teasing could be a little higher. Just remind us how much is in the fiscal '25 guide and what would be left sort of for incremental benefit to '26.

好的，再說一次，我會跳回來，你剛才提醒我，史蒂夫，成本削減行動花費了 5000 萬美元，我認為這個數字可能會更高一些。只需提醒我們 25 財年指南中有多少內容，以及剩餘的 26 年增量收益是多少。

Right now, it's running about 20 this year, 30 next year.

目前，今年將運行約 20 場，明年將運行 30 場。

Okay.

好的。

Roughly.

大致。

I'll follow up. Thank you.

我會跟進。謝謝。

Colin Rusch, Oppenheimer & Co. Inc.

奧本海默公司（Oppenheimer & Co. Inc.）的科林·拉什（Colin Rusch）

Thanks so much guys. With the customer engagement on the battery side, can you talk about the maturity of the testing process, and evaluation from those customers as well as their interests and potential for, you guys to aggregate a turnkey line for any of these folks, particularly in North America.

非常感謝大家。就電池的客戶參與而言，您能否談談測試過程的成熟度，以及這些客戶的評價以及他們的興趣和潛力，您能否為這些人，特別是在北美，聚集一條交鑰匙生產線。

Again, a couple of questions. Good morning, Colin.

再次，我有幾個問題。早安，科林。

I would tell you, as I said in my comments, the vast majority of the volume of that of those 100 million plus in quotes is mass production. So, these are not, these are people that are well beyond their testing phase, and they're into the development of the specs associated with mass production lines. Unlike our friends that we've done work with over the last several years who had been working on it for multiple years these folks have been working on the testing. They worked on it for multiple years and then put a mass order in.

我想告訴你，正如我在評論中所說的那樣，報價中的 1 億多的數量絕大多數都是大規模生產的。所以，這些人並不是已經遠遠超出了測試階段，而是正在開發與大規模生產線相關的規格。與過去幾年來與我們合作過的朋友不同，他們已經為此工作了多年，而這些人一直致力於測試。他們花了數年時間進行研發，然後下了大量訂單。

These folks have been working in the background on our testing equipment for quite a while, and the machinery that we're talking about right now is what they would call their mother equipment, which is the primary machine that represents. The example of what they expect their production equipment to look like. So, the first one to go out with a little bit less finality as to what it's going to be, and then ultimately, they'll tweak that machine to what they want in a more significant order thereafter as they start to see it run.

這些人已經在我們測試設備的幕後工作了很長一段時間，我們現在談論的機器就是他們所謂的母設備，也就是代表的主要機器。他們期望的生產設備是什麼樣子的例子。因此，第一個推出的產品對於最終產品沒有那麼確定，然後，當他們開始看到機器運行時，他們會按照更重要的順序對機器進行調整，使其符合他們的要求。

You, the other part of your question call I lost that.

您，您的問題的另一部分是“我丟失了它”。

Forgot it was about turnkey, your ability to offer turnkey solutions.

忘記了它是關於交鑰匙的，即您提供交鑰匙解決方案的能力。

Yes, so starting here we expected by September. We've talked about this before with the street that we expect to have a machine here September October Ish that we will allow some of our customers to come in and to operate on a production level piece of equipment rather than having the design from scratch what they're looking for. We will have a production level piece of equipment including material handling on the front-end side of it that right now that is not our proprietary solution.

是的，我們預計從九月開始。我們之前已經與街道討論過這個問題，我們預計將於 9 月至 10 月在這裡安裝一台機器，我們將允許一些客戶進來操作生產級設備，而不是從頭開始設計他們想要的東西。我們將擁有一台生產級設備，包括前端的材料處理，但目前這不是我們的專有解決方案。

We've got a couple of partners we're bringing in to work with that. So, the intent is to allow large battery manufacturers and other OEMs to come in with their materials, run through the process on our equipment at production rates and see what that looks like and tweak their final specs to that.

我們已經邀請了一些合作夥伴來共同致力於此。因此，我們的目的是允許大型電池製造商和其他 OEM 帶著他們的材料進來，以生產率在我們的設備上進行該過程，看看是什麼樣子，並根據該情況調整他們的最終規格。

Super helpful and then just shifting gears to warehouse automation, given what we're seeing in terms of deteriorating labor productivity in warehouses, some of the slowdown and overall build out, but then a lot of work being focused on optimizing, throughput on these facilities. Can you talk a little bit about your strategy around evolving that part of the business. Obviously, you've got, a nice set of customer engagements, but supplementing that with, technology from other folks and being able to aggregate more robust solutions seems like, an area where you could start accelerating growth. Just want to get a sense of your overall thought process on how much more you need to augment the offering and how you see that that opportunity, emerging over the next couple of years.

非常有幫助，然後轉向倉庫自動化，考慮到我們所看到的倉庫勞動生產率下降、一些放緩和整體建設，但隨後很多工作集中在優化這些設施的吞吐量上。您能否稍微談談圍繞著發展這部分業務的策略？顯然，您已經擁有了一套良好的客戶參與度，但如果再加上其他人的技術並能夠聚合更強大的解決方案，這似乎是一個您可以開始加速成長的領域。只是想了解您的整體思考過程，即您需要在多大程度上增加產品，以及您如何看待未來幾年出現的機會。

Sure, I mean, you heard me on my comments talk about our partnership with Teradyne. Teradyne is the owner of MiR Robotics. MiR is a leading provider of robotics into a lot of industries from autos and other associates. This is an area they do not sell into at all right now. We've got a couple of other partnerships as well.

當然，我的意思是，您聽到我在評論中談論我們與 Teradyne 的合作關係。Teradyne 是 MiR Robotics 的所有者。MiR 是汽車及其他相關產業中機器人技術的領先供應商。這是他們目前根本不銷售的領域。我們還有其他一些合作夥伴。

We seem to be quite the belle of the ball. We've been uniquely positioned because of our, we don't have a reliance on hardware. So, in other words, we don't sell conveyors. Heavy sorters and all the heavy equipment associated with warehouses. So, our ability to come in and offer robotic solutions is unique, and our ability to go back to our existing customers and augment their productivity with our partnership with Teradyne is a significant opportunity in our view. We'll continue to expand those relationships. We don't have any great intention of acquiring any kind of robotics associations with this, but there are other small investments we'll make to the portfolio to allow us to be a unique provider in the space.

我們看起來是舞會上的焦點人物。由於我們不依賴硬件，所以我們有獨特的優勢。換句話說，我們不銷售傳送帶。重型分類機和與倉庫相關的所有重型設備。因此，我們提供機器人解決方案的能力是獨一無二的，我們認為，透過與 Teradyne 合作，我們能夠回到現有客戶並提高他們的生產力，這是一個重要的機會。我們將繼續擴大這些關係。我們並沒有打算透過此方式收購任何類型的機器人協會，但我們會對該投資組合進行其他小額投資，以使我們成為該領域的獨特供應商。

Remember, we sell warehouse execution software. Warehouse execution runs the inside of a warehouse. We're now going to be running the robotics that we've talked about, and now we have a partnership with one of the leaders in the space. So, that's where we're going.

請記住，我們銷售倉庫執行軟體。倉庫執行在倉庫內部運作。我們現在將運行我們討論過的機器人技術，並且我們與該領域的一位領導者建立了合作夥伴關係。所以，這就是我們要去的地方。

Thank you so much guys.

非常感謝你們。

Justin Bergner, Gabelli Funds.

賈斯汀·伯格納，Gabelli 基金。

Good morning, Joe. Good morning, Steve.

早安，喬。早安，史蒂夫。

Hi Justin.

你好，賈斯汀。

Lots of moving parts, mostly good, so I had a few questions, just some kind of quick clean up questions.

有很多活動部件，大部分都很好，所以我有幾個問題，只是一些快速清理的問題。

The cost out, the $50 million cost out, is any of that tied to SGK.

成本支出，5000 萬美元的成本支出，都與 SGK 有關。

No, this is to be perfectly frank, it is associated with the downsizing of the volumes, associated with the volumes that our energy business in Europe and at corporate.

不，坦白說，這與產量縮減有關，與我們在歐洲和企業的能源業務產量有關。

Okay, Got you. And then the SG8K accounting post close, you'll be including their equity income on a one quarter lag in your EBITDA or 40%.

好的，明白了。然後，在 SG8K 會計結算後，您將把他們的股權收益以一個季度的滯後計入您的 EBITDA 或 40%。

No, Justin, what we'll do is on a GAAP basis, we'll be including our equity income, our equity portion of their net income in our GAAP net income. It'll be one line item on our income statement. For purposes of the adjusted EBITDA amount, we'll include their actual adjusted EBITDA on a one quarter lag but also provide a pro forma for that one quarter lag. So, we will have we will be presenting our pro forma full period results if you will.

不，賈斯汀，我們將按照 GAAP 原則，將我們的股權收益，即他們的淨收入中的股權部分，納入我們的 GAAP 淨收入中。它將是我們損益表上的一項。為了調整 EBITDA 金額，我們將把他們的實際調整 EBITDA 包含在一個季度的滯後中，同時也提供該一個季度滯後的形式發票。因此，如果您願意的話，我們將提供我們準備的全期結果。

Yes, remember, Justin, they're integrating onto our systems. We hope this is not a permanent or long-term situation, but as they migrate onto our systems, it's going to be a little bit choppy from a reporting standpoint. So, it'll hopefully several quarters like this and then we'll be real time.

是的，記住，賈斯汀，它們正在整合到我們的系統中。我們希望這不是永久或長期的情況，但隨著它們遷移到我們的系統，從報告的角度來看，情況會有點不穩定。因此，我們希望能夠經過幾個季度的時間來實現這一點。

Got you. That makes sense. So, you're going to actually be showing an estimate for the current quarter EBITDA in the pro forma. And then the actual GAAP accounting is a one quarter lag just to make sure that it's correct given the changes taking place within the joint venture.

明白了。這很有道理。因此，您實際上將在表格中顯示本季 EBITDA 的估計值。然後，實際的 GAAP 會計會滯後一個季度，以確保考慮到合資企業內部發生的變化，其是正確的。

That's correct.

沒錯。

Okay, thank you. In terms of the share, we're purchasing your current authorization is fairly modest, would you then be considering once SGK closes changing or expanding the share repurchase authorization.

好的，謝謝。就股票而言，我們購買您目前的授權是相當適中的，那麼您是否會考慮在 SGK 關閉後更改或擴大股票回購授權。

You're anticipating, what's coming, so yes.

你正在期待即將發生的事情，所以是的。

Okay, Got you. And then more substantive questions. So, this retrofit opportunity, just can you provide a little bit more color as to how it would work to retrofit.

好的，明白了。然後是更多實質的問題。因此，對於這個改造機會，您能否提供更多有關如何進行改造的詳細資訊。

Sure, so essentially the process for building a battery is multiple steps. One of the steps is the electrode production itself. The electrode production right now in the wet process utilizes what we've described for a long time, a slurry containment system. You create the slurry, you code it, you bake it off over a 100-meter oven, and then you wind it, and you continue the rest of the process.

當然，本質上製造電池的過程分為多個步驟。其中一個步驟是電極生產本身。目前濕式電極生產採用了我們長期描述的漿料容器系統。你製作泥漿，對其進行編碼，在 100 公尺的烤箱中烘烤，然後將其捲繞，並繼續其餘過程。

Our equipment comes in and takes up a fraction of that space and generates far more battery, far more electrode than you can with the wet production cycle right now. So, the opportunity is, and we've got a cost justified for those customers as they're looking at it. We'll deliver that turnkey solution and drop it into your facility. You can run it simultaneous with or eliminate all your wet process and all the solvent handling portions of that business, but nothing else in your factory needs to change.

我們的設備只佔用一小部分空間，但卻能生產出比現在濕式生產循環更多的電池和電極。所以，這是一個機會，而且我們為那些正在考慮的客戶提供了合理的成本。我們將提供交鑰匙解決方案並將其放入您的工廠。您可以同時運行它或消除所有濕式製程和該業務的所有溶劑處理部分，但工廠中的其他任何部分都不需要改變。

Okay, would you expect a similar size and price tag as a mass production system, or would this be a smaller.

好的，您是否期望它的尺寸​​和價格與大規模生產系統相似，或者它會更小一些。

This is a mass production. So, this is mass production. It's just the elimination of their mass production of wet electrodes for our mass production of dry.

這是大規模生產。所以，這是大規模生產。這只是消除了他們大規模生產濕電極的現象，轉而採用我們的大規模生產乾電極的方式。

Okay, so what's different versus a new battery factory, for example.

好的，那麼與新電池工廠相比有什麼不同呢？

New battery fact in a retrofit, frankly, I mean, if you, if to produce the amount of electrode necessary that if I had a Gigafactor that needed to produce in wet today, the replacement of our equipment on the space could probably triple the amount of electrode being produced in that similar space. So, that's what changes essentially is the efficiencies that are generated by using dry battery electrode.

坦白說，新電池實際上是在改造中，我的意思是，如果你要生產必要數量的電極，如果我有一個今天需要在潮濕環境中生產的 Gigafactor，那麼更換我們在該空間上的設備可能會使在類似空間內生產的電極數量增加三倍。因此，本質上改變的是使用乾電池電極所產生的效率。

Okay, but what would you be supplying that's different in a retrofit situation versus a new factory situation.

好的，但是在改造情況下和在新工廠情況下您提供的產品有什麼不同呢？

Now I understand. No, nothing. It's the same equipment we would sell to others, but what we'd have to sell is that's part of the strategy of developing our own solution turnkey that allows customers to come in. They don't have to; they won't have to go through the process of having to developing their specs and ultimately testing. Our expectation is once they're able to run at speed, they can order it from our machine directly into their plan.

現在我明白了。不，沒什麼。我們會向其他人銷售相同的設備，但我們必須銷售的是開發我們自己的交鑰匙解決方案策略的一部分，以便客戶能夠參與其中。他們不需要這樣做；他們不需要經歷制定規格並最終進行測試的過程。我們的期望是，一旦他們能夠快速運行，他們就可以從我們的機器直接訂購到他們的計劃中。

Okay, that's the same.

好的，是一樣的。

Yes.

是的。

And then lastly, the grid storage opportunity. I mean, I understand how that could be attractive, but help me understand, the business case for dry versus wet or whatever you'd be replacing there versus the business case in the world. It just, it doesn't jump out as much.

最後，電網儲存機會。我的意思是，我明白這有多麼吸引人，但請幫助我理解，乾法與濕法的商業案例，或者無論你要替換什麼，與世界上的商業案例相比。只是，它並沒有跳得那麼明顯。

It's exactly the same. Wet is a much less efficient process. Secondly, when you talk about grid storage, you could be talking about different thicknesses of the actual electrode itself. You can get a thicker electrode using dry electrode than you can with wet. So, the chemistry you use in grid storage are different than EV batteries, and as a result, what you end up with is a better solution that's less expensive for grid storage than current technology. So the dynamics, the value propositions are exactly the same for EV and grid. The difference is, frankly, the opportunity for EV could probably be larger if the world went EV. But still, it's in addition to what we're doing right now, so we think it's a market expansion.

一模一樣。濕式製程的效率較低。其次，當您談論網格儲存時，您可能談論的是實際電極本身的不同厚度。使用乾電極可以獲得比濕電極更厚的電極。因此，電網儲存中使用的化學成分與電動車電池不同，因此，您最終得到的是一個比現有技術更便宜的電網儲存解決方案。因此，電動車和電網的動態和價值主張完全相同。坦白說，不同之處在於，如果世界都採用電動車，電動車的機會可能會更大。但它仍然是我們目前正在做的事情的補充，所以我們認為這是一種市場擴張。

Got you. Alright, thank you for taking all my questions.

明白了。好的，感謝您回答我的所有問題。

Sure.

當然。

Thank you. There are no further questions at this time. I'd like to hand the floor back over to Steven Nicola for closing remarks.

謝謝。目前沒有其他問題。我想將發言權交還給史蒂文·尼古拉，請他做最後發言。

All right, thank you, Paul and we'd like to thank everyone for participating in our call this morning. And we look forward to our next call in in July following the third quarter fiscal earnings.

好的，謝謝你，保羅，我們想感謝大家今天早上參加我們的電話會議。我們期待在第三季財務收益公佈後，於 7 月召開下一次電話會議。

Have a great day.

祝你有美好的一天。

This concludes today's conference. You may disconnect your lines at this time.

今天的會議到此結束。現在您可以斷開線路。

Thank you for your participation.

感謝您的參與。