Mistras Group Inc (MG) 2024 Q3 法說會逐字稿

Thank you for joining the Mistras Group's conference call for its third quarter ended September 30th 2024. My name is Amber and I will be your event manager today. We will be accepting questions after management's prepared remarks participating on the call for Mros will be Manny Stako, the company's Chairman of the board and interim President and Chief Executive Officer, Ed Preisner, senior Executive Vice President and Chief Financial Officer.

感謝您參加 Mistras Group 截至 2024 年 9 月 30 日的第三季電話會議。我叫 Amber，今天我將擔任您的活動經理。在管理層發表準備好的演講後，我們將接受提問，參加 Mros 電話會議的有公司董事會主席兼臨時總裁兼首席執行官 Manny Stako 和高級執行副總裁兼首席財務官 Ed Preisner。

I want to remind everyone that remarks made during this conference call will include forward-looking statements. The company's actual results could differ materially from those projected. Some of those factors that cause actual results to differ are discussed in the company's most recent annual report on form 10-K and the other reports filed within the SEC the discussion in the conference call.

我想提醒大家，本次電話會議的言論將包括前瞻性陳述。該公司的實際結果可能與預測結果有重大差異。導致實際結果不同的一些因素已在公司最近的 10-K 表年度報告和向美國證券交易委員會提交的其他報告以及電話會議的討論中進行了討論。

We also include certain financial measures that were not prepared in accordance with us, GAAP reconciliation of these non US GAAP financial measures to the most directly comparable us. GAAP. Financial measures can be found in the tables contained in yesterday's press release and in the company's related current report on the form eight K. These reports are available at the company's website in the investors section and on the S ECs website, I would now like to turn the conference call over to Manny Diis.

我們也包括某些未依照我們的 GAAP 編製的財務指標，將這些非美國 GAAP 財務指標與最直接可比較的美國 GAAP 財務指標進行調整。公認會計準則。財務指標可以在昨天的新聞稿中的表格和公司表格 8K 中的相關當前報告中找到。給曼尼·迪斯。

Thank you Amber.

謝謝你，Amber。

Good morning everyone and thank you for joining us today.

大家早安，感謝大家今天的參與。

The company's third quarter results were in line with our expectations with the bottom line growing significantly faster than the top line.

該公司第三季的業績符合我們的預期，獲利成長速度明顯快於營收成長。

Once again, demonstrating the margin of creative actions and significant operating leverage improvements that we have instituted into our business model revenue was up nearly 2% during the quarter, led by continuing growth in the international segment for the eighth consecutive quarter.

這再次證明了我們在商業模式中採取的創造性行動和顯著的經營槓桿改進的利潤率，本季度收入增長了近 2%，其中國際業務連續第八個季度持續增長。

Along with double digit revenue growth within the North American segments, aerospace and defense and industrial industries.

北美地區、航空航太、國防和工業產業的收入均實現了兩位數成長。

Our consolidated oil and gas industry revenue decreased during the third quarter driven by decrease in downstream sub industry revenue as we had anticipated due to a relatively moderate fall turnaround season compared to a more robust spring turnaround season. Earlier this year, our midstream sub industry revenue also decreased in the third quarter due to timing of customer projects. Whereas upstream sub industry revenue increased in the third quarter due to strong customer demand adjusted EBITA was up over 11% compared to the prior year quarter and up over 32% compared to the year-to-date period, reflecting significant improvements in our operating leverage.

正如我們預期的那樣，與更強勁的春季週轉季節相比，秋季週轉季節相對溫和，導致下游子行業收入下降，這在第三季度造成了我們的綜合石油和天然氣行業收入下降。今年早些時候，由於客戶專案時間表的原因，我們的中游子行業收入在第三季也出現下降。由於客戶需求強勁，上游子產業第三季營收有所成長，調整後的 EBITA 較上年同期成長超過 11%，較年初至今成長超過 32%，反映出我們的經營槓桿顯著改善。

I'm also pleased with our third consecutive quarter, generating GAAP net income which is a function of continued revenue growth, gross profit expansion and selling general and administrative expense reductions.

我對我們連續第三個季度實現 GAAP 淨收入感到滿意，這是持續的收入成長、毛利擴大以及銷售一般及管理費用減少的結果。

Selling general and administrative expenses were down compared to both the year ago quarter and year-to-date periods for the third quarter of 2024 SG&A was down 1.7% year over year to $38.9 million.

2024 年第三季的銷售一般及行政費用與去年同期及年初至今相比均有所下降，銷售一般及行政費用年減 1.7% 至 3,890 萬美元。

SG&A was also down 5.1% sequentially from the second quarter of this year.

銷售、一般及行政開支也比今年第二季下降了5.1%。

I noted last quarter that both cash from operations and free cash flow performance along with debt level through mid year, June 30th significantly lag that of prior year and the company's expectations.

我上個季度注意到，截至年中（6 月 30 日）的經營現金流和自由現金流表現以及債務水準都明顯落後於去年同期和公司預期。

I mentioned that management would be intently focused on improving this performance via prioritization and focus during the second half of 2024.

我提到，管理層將在 2024 年下半年全心全意地透過優先排序和重點關注來提高這一業績。

I am pleased to report that we made significant progress on this front during the third quarter which ed will cover later.

我很高興地報告，我們在第三季在這方面取得了重大進展，本文稍後將會介紹。

A few additional comments on the third quarter are as follows.

關於第三季的幾點補充評論如下。

Revenue generated by our data analytical solutions category in the quarter was $17.9 million which is essentially flat with the prior year as some scheduled jobs pushed out beyond the third quarter and there were some anti unanticipated delays with new customer implementations.

本季我們數據分析解決方案類別產生的收入為 1790 萬美元，與上年基本持平，因為一些預定的工作推遲到了第三季度之後，並且新客戶實施出現了一些意外的延遲。

We expect revenue growth for this category to be a mid 10s growth rate. In 2025.

我們預計該類別的收入成長率將達到 15% 左右。在2025年。

Our global consolidated aerospace and defense revenue grew 9.1% in the third quarter.

我們的全球綜合航空航太和國防收入在第三季成長了 9.1%。

In spite of unanticipated project push outs due to current market conditions.

儘管由於當前市場狀況導致該項目意外推遲。

Nevertheless, assuming current market conditions don't materially change. We expect to finish up nearly 15% for the full year 2024.

儘管如此，假設當前市場條件不會發生重大變化。我們預計 2024 年全年成長率將接近 15%。

We additionally expect this key growth industry to continue with me mid 10s revenue growth in 2025.

我們也預計，到 2025 年，這一關鍵成長產業的收入將繼續成長 15%。

We will continue with our longer term strategy of increased investment in this industry and we continue to extend our service offerings to include more additive manufacturing and mechanical work beyond inspection testing.

我們將繼續實施增加對該行業投資的長期策略，並繼續擴展我們的服務範圍，包括檢驗測試以外的更多積層製造和機械加工。

We will also continue to expand our scope of work in the private space industry as a result of robust demand for our services in this area.

由於私人太空產業對我們服務的需求強勁，我們也將繼續擴大該領域的工作範圍。

As such, we expect continued strong performance in this industry over the longer term.

因此，我們預計該行業將在長期內繼續保持強勁表現。

The search for a permanent CEO is on track and progressing well.

尋找永久執行長的工作正在進行中，並且進展順利。

And my goal is to announce our next CEO before the end of this year.

我的目標是在今年年底之前宣布我們的下一任執行長。

Once in place, I will remain active as the Chairman of the board and expect to work closely with the CEO, not just during a transitionary period, but on a recurring basis, going forward to continue on the momentum and progress developed in 2024.

一旦到任，我將繼續擔任董事會主席，並期望與執行長密切合作，不僅是在過渡時期，而且是定期合作，繼續保持 2024 年形成的勢頭和進展。

And lastly, I once again, want to note the renewed sense of commitment and dedication being demonstrated throughout the entire organization via an invigorated senior leadership team.

最後，我想再次指出，透過充滿活力的高階領導團隊，整個組織展現了新的承諾和奉獻精神。

Now, I would like to turn the call over to ed for a more detailed update on our recent results.

現在，我想將電話轉給 ed，以便更詳細地介紹我們最近的結果。

Thank you, Manny and good morning, everyone.

謝謝你，曼尼，大家早安。

As Manny mentioned, I am pleased to report that we did achieve significant progress in improving our cash from operations and free cash flow performance.

正如曼尼所提到的，我很高興地報告，我們在改善經營現金流和自由現金流表現方面確實取得了重大進展。

We generated $19.4 million of operating cash flow and $13.2 million of free cash flow during the third quarter. Attributable to our improved results and operating leverage. We used this cash flow to pay down over $10 million of borrowings during the third quarter.

我們在第三季產生了 1,940 萬美元的營運現金流和 1,320 萬美元的自由現金流。這歸功於我們改善的業績和經營槓桿。我們利用這筆現金流在第三季償還了超過 1,000 萬美元的借款。

Our gross debt as of September 30 2024 is the lowest level. It has been since our acquisition of onstream in December 2018.

截至 2024 年 9 月 30 日，我們的總債務處於最低水準。自 2018 年 12 月我們收購 onstream 以來一直如此。

And we have paid down over $100 million of outstanding borrowings. Since that time, we are funding our organic growth initiatives with operating cash flow which significantly improved in the third quarter of 2024.

我們已經償還了超過1億美元的未償借款。自那時起，我們開始利用營運現金流為我們的有機成長計畫提供資金，營運現金流在 2024 年第三季顯著改善。

Although our second half of 2024 free cash flow and debt pay downs are expected to achieve our original ambitions for the year. We will not make up the shortfall from the first half of 2024 attributable to the earlier buildup of accounts receivable accordingly. We will revise our full year free cash flow outlook to a range of between $18million to$ 22 million.

儘管我們預計 2024 年下半年的自由現金流和債務償還將實現我們今年的原定目標。我們將不會相應彌補2024年上半年因應收帳款早期累積而產生的缺口。我們將全年自由現金流預期修改為1800萬美元至2200萬美元之間。

We will continue to fund our organic growth initiatives internally and the company's bottom line is growing significantly faster than the top line once again, demonstrating the margin of creative actions and significant operating leverage improvements that we have instituted into our business model.

我們將繼續在內部為我們的有機成長計畫提供資金，公司的獲利成長再次明顯快於營收成長，證明了我們在商業模式中採取的創造性行動和顯著的經營槓桿改進的餘地。

The third quarter of 2024 was our fifth consecutive quarter of both revenue and adjusted even to growth versus the prior year, comparable periods, revenue in the third quarter was up only 2% year over year. Given the expected slowdown in the oil and gas industry, particularly in the downstream subcategory, which we had anticipated for the second half of this year.

2024 年第三季是我們連續第五個季度實現營收成長，即使與去年同期相比，第三季的營收年增 2%。鑑於石油和天然氣產業預計會放緩，特別是下游子類別，我們預計今年下半年會出現這種情況。

Our international segment revenue was up 8.7% in the quarter continuing the strong trend they've experienced throughout 2024.

我們的國際部門營收本季成長了 8.7%，延續了 2024 年全年的強勁趨勢。

Although overall North American segment revenue was essentially flat in the third quarter, the aerospace and defense and industrial industry revenues were each up over double digits in the third quarter. As compared to the prior year, our global consolidated aerospace and defense business revenue grew 9.1% in the third quarter. In spite of unanticipated project push outs due to current market conditions on the heels of having been up 17.5% in the second quarter and 18.9% in the first quarter of 24.

儘管第三季北美分部整體收入基本持平，但航空航太、國防和工業產業收入在第三季均實現了超過兩位數的成長。與前一年相比，我們第三季全球綜合航空航太和國防業務收入成長了 9.1%。儘管由於當前市場狀況導致專案意外推遲，但 24 年第二季和第一季的銷售額分別成長了 17.5% 和 18.9%。

Nevertheless, as Manny said earlier, assuming current market conditions don't materially change. We expect to finish up nearly 15% growth for the full year of 2024 in this industry. And we additionally expect this key growth industry to continue with mid 10s revenue growth in 2025.

不過，正如曼尼之前所說，假設當前的市場條件不會有重大變化。我們預計該產業 2024 年全年將實現近 15% 的成長。我們也預計，到 2025 年，這個關鍵成長產業的收入將繼續保持 15% 左右的成長率。

Consolidated industrial industry revenue was up 17.2% and power generation and transmission industry revenue was up 19.7% respectively in the third quarter versus the prior year on the strength of demand in these industries.

由於這些產業的需求強勁，第三季綜合工業產業營收比去年同期成長了 17.2%，發電和輸電產業營收比去年同期成長了 19.7%。

Although downstream revenue moderated in the third quarter, as we had anticipated, upstream revenue continued to be strong in the third quarter and was up 15.2% compared to the prior year. Third quarter, midstream revenue was down 17.8% in the quarter compared to the prior year. Primarily due to a non-recurring turnaround project which occurred in the prior year quarter.

儘管正如我們預期的那樣，第三季下游收入有所放緩，但上游收入在第三季度繼續保持強勁，比上年增長了 15.2%。第三季度，中游收入較上年同期下降 17.8%。主要是由於去年同期發生的非經常性扭虧為盈項目。

Oil and gas industry revenue as a whole has been very resilient for the year-to-date in 2024 up 4.5% over the prior year for the first nine months of the year, gross profit dollars were up on a year-to-date basis for the first nine months of 2024 across all segments. As was operating income up for the same period on a consolidated basis, operating income was $11.9 million for the third quarter of 2024. A significant increase over the prior year period.

2024 年迄今，石油和天然氣行業整體收入表現強勁，前 9 個月較上年同期增長 4.5%，毛利年初至今有所增長2024 年前 9 個月所有細分市場的情況。與同期合併基礎的營業收入相比，2024 年第三季的營業收入為 1,190 萬美元。較去年同期大幅成長。

As Manny mentioned selling general and administrative expenses were down both sequentially and year over year.

正如曼尼所提到的，銷售費用和管理費用較上季和年比均有所下降。

For the third quarter. Our SG&A was 21.3% of revenue and was 21.7% of revenue for the nine months ended September 30 on a full year basis. We anticipate 2024 S DNA of approximately 22% of revenue which is down 160 basis points from full year. 2023 SGN A change of revenue of 23.6%.

對於第三季。我們的銷售、一般及行政費用佔收入的 21.3%，截至 9 月 30 日的九個月全年收入的 21.7%。我們預計 2024 年 S DNA 約佔營收的 22%，比全年下降 160 個基點。2023 SGN收入變化23.6%。

The company's primary objective is to create shareholder value by improving our bottom line profitability. And in the third quarter of 2024 we continue to make significant progress on that front. With GAAP net income of $6.4 million or 20¢ per diluted share on a year-to-date basis for nine months. Our GAAP in income was $13.8 million or 44¢ per diluted share interest expense was $4.3 million for the third quarter up slightly from a year ago.

公司的首要目標是透過提高底線獲利能力來創造股東價值。2024 年第三季度，我們將繼續在這方面取得重大進展。以年初至今的九個月計算，以 GAAP 計算的淨收入為 640 萬美元，即每股 20 美分。我們第三季的 GAAP 收入為 1,380 萬美元，即每股攤薄收益 44 美分，利息支出為 430 萬美元，較去年同期略有成長。

But down sequentially from the second quarter, we expect interest expense to reduce further in the fourth quarter and on an annual run rate basis in fiscal '25 by first, reducing leverage which will lead to a lower credit margin spread and second by decreasing the amount of our average outstanding borrowings on a trailing 12 month bank defined leverage ratio on our credit rating on our credit facility rather was approximately 2.6 as of September 30. This is the lowest ratio lowest, this ratio has been since the third quarter of 2018. Based on our current projections, we anticipate further reductions to our leverage ratio lower as of as of year end due to increasing our trailing ebita and reducing debt further.

但與第二季度相比，我們預計第四季度的利息支出將進一步減少，並且按年率計算，2025 財年的利息支出將減少，首先，槓桿率將降低，從而導致信貸保證金利差下降，其次，截至 9 月 30 日，我們過去 12 個月銀行定義的槓桿率與我們信貸額度的信用評級之比約為 2.6。這是自2018年第三季以來的最低比率。根據我們目前的預測，由於我們的息稅折舊攤銷前利潤增加且債務進一步減少，我們預計到年底我們的槓桿率將進一步降低。

Our effective income tax rate was 29% in the third quarter and was 22% for the nine months ended. September 30. We expect our effective income tax rate to be in the mid 20% range for the full year of 2024.

我們的有效所得稅率在第三季為 29%，截至九個月的九個月為 22%。9 月 30 日。我們預計 2024 年全年有效所得稅率將處於 20% 左右。

Note that there were several special items recorded during the third quarter including a $2.1 million re reorganization and other cost charge a $900,000 favorable legal settlement and a $1.5 million non-recurring other income benefit which in aggregate essentially offset with only a very minimal impact in that income and no impact to dilute an EPS all in all our efforts are resulting in improved performance. I am optimistic, not only about this year but about 2025 and beyond. As we continue to implement initiatives that leverage the unparalleled excellence, talent, experience, capabilities, and knowledge that that have made Mros a leader in this industry for over 40 years.

請注意，第三季記錄了幾個特殊項目，包括210 萬美元的重組和其他成本費用、90 萬美元的有利法律和解以及150 萬美元的非經常性其他收入收益，這些收益總體上基本上抵消了這些影響，但影響非常小。我很樂觀，不僅對今年，而且對 2025 年及以後。我們將繼續實施各項計劃，充分利用我們無與倫比的卓越品質、人才、經驗、能力和知識，這些優勢使 Mros 40 多年來一直處於該行業的領先地位。

We sincerely appreciate your continued support and expect to reward your patients with significantly improved results over full year 2024 and for the longer term future at this time, I would like to turn the call back over to Manny for his closing remarks before we move on to answer your questions.

我們真誠地感謝您一直以來的支持，並期望在2024 年全年和更長遠的未來為您的患者帶來顯著改善的結果。 ，然後我們繼續討論回答你的問題。

Thanks, Ed, the third quarter represented another sequential strong top and bottom line quarter for mistress providing evidence and confidence for our future performance. Given our newfound discipline processes and approach.

謝謝，艾德，第三季度對情婦來說又是一個連續強勁的營收和淨利潤季度，為我們未來的表現提供了證據和信心。鑑於我們新發現的學科流程和方法。

While we are optimistic of our outlook, we know that there is nevertheless still work to be done to achieve our long term aspirations and goals, as I mentioned earlier, due to the short run under performance in certain sectors due to current market conditions and project pushouts.

雖然我們對前景持樂觀態度，但我們知道，要實現我們的長期願望和目標，仍有許多工作要做，正如我之前提到的，由於目前的市場狀況和項目，某些行業短期內表現不佳。

We are revising our 2024 guidance of full year revenue to between$ 7 25 million and $730 million from 725 to $750 million previously and adjusted Evita to between $80 $82 million from $84 million to $89 million previously.

我們將2024 年全年營收預期從先前的7.25 億美元至7.5 億美元調整至7.25 億美元至7.3 億美元之間，並將Evita 營收預期從先前的8,400 萬美元至8,900 萬美元調整至8,000 萬美元至8,200 萬美元之間。

And as ed mentioned earlier, we are lowering our free cash flow guidance to between $18 and $22 million primarily related to an unanticipated build up of accounts receivable.

正如艾德之前提到的，我們將自由現金流預期下調至 1,800 萬至 2,200 萬美元之間，這主要與應收帳款的意外增加有關。

Despite the short term guidance impacts to our 2024 results. We are confident in our long term strategy and business model heading into 2025 as to our preliminary outlook for 2025 given the expected growth in our higher margin businesses and continued operating leverage improvements.

儘管短期指導會對我們的 2024 年業績產生影響。鑑於我們高利潤業務的預期成長和持續的經營槓桿改善，我們對 2025 年的長期策略和商業模式充滿信心，我們對 2025 年的初步展望也是如此。

We anticipate a meaningful improvement in our net income with low double digit expansion in adjusted ebita and low single digit organic revenue growth.

我們預計淨收入將有顯著改善，調整後息稅折舊攤提前利潤將實現低兩位數成長，有機收入將實現低個位數成長。

I am encouraged with the process progress being achieved by the collaboration between our commercial and operations functions which is resulting in the successful renewal of long term agreements with a number of our largest customers.

我對我們的商業和營運職能之間的合作所取得的進展感到鼓舞，並成功與我們的幾個最大客戶續簽了長期協議。

Our continued cost discipline, strategic partnerships with our valuable portfolio of clients and the company's long term vision have excited us for the prospect of continued profitable growth. For Mistress, I am extremely proud of our nearly 5,000 employees who believe in our plan and are working hard every day to achieve our goals and objectives.

我們持續的成本控制、與寶貴客戶組合的策略合作夥伴關係以及公司的長期願景使我們對持續獲利成長的前景感到興奮。對於 Mistress 來說，我為我們近 5,000 名員工感到非常自豪，他們相信我們的計劃，並且每天都在努力實現我們的目標和目的。

You can feel that level of energy throughout the organization and our customers are responding in kind as well with increasing levels of ro I recognition for the value that Mistress employees bring to the equation in delivering on our mission to maximize safety and operational uptime for our customers vital assets.

你可以感受到整個組織的能量水平，我們的客戶也做出了同樣的回應，對Mistress 員工在實現我們的使命——最大限度地提高客戶的安全性和正常運行時間方面所發揮的價值的認可程度不斷提高重要資產。

At this time, I would like to ask the operator to open the call to your questions.

現在，我想請接線員打開電話回答您的問題。

Thank you. We will now conduct the question and answer session.(Operator Instructions)

謝謝。我們現在將進行問答環節。

Our first question comes from John Franzreb at Sidoti and company. Your line is now open.

我們的第一個問題來自 Sidoti 公司的 John Franzreb。您的線路現已開通。

Good morning, everyone and thanks for taking the questions.

大家早安，感謝你們回答問題。

I'd like to start out with the reduction in the cash flow projections. Could you just talk us through what changed today versus three months ago when you had the higher projections for the full year?

我想先減少現金流預測。您能否與我們講講今天與三個月前全年預測較高時相比有哪些變化？

Oh, hey, John. Thanks . Yeah, great question. We we, we had a very good, a very good progress in Q3 and we'll continue that in Q4. It's just very simply our AR balance it, it's billed and unbilled AR is still higher than we'd like. It. It is elevated year over year. So we're still working to bring that back down.

哦，嘿，約翰。謝謝。是的，很好的問題。我們在第三季度取得了非常好的進展，我們將在第四季度繼續保持這種勢頭。這只是我們的應收帳款餘額，已開立發票和未開立的應收帳款仍高於我們的預期。它。它逐年上升。因此我們仍在努力降低這個數字。

There's just not enough time to do that in the remainder, 60 days of the here to get back to the original aspirations. But it's really a function of just pulling the AR balance back down is how we get there. So again, we are making progress now, but we just didn't get on it quickly enough in the year. So we're not digging out at this point from the shortfall earlier in the year during the first half. But otherwise we're on course here and we'll have further improvements in Q4 as we saw in Q3.

在剩下的 60 天內根本沒有足夠的時間來實現最初的願望。但這其實只是一個將 AR 平衡拉回原位的功能，這就是我們達到這個目標的方法。所以，我們現在正在取得進展，但今年我們的進展速度還不夠快。因此，我們目前還沒有彌補今年上半年早些時候的缺口。但除此之外，我們的進展仍按計劃進行，並且我們將在第四季度取得進一步的進步，就像我們在第三季度看到的那樣。

Are you making systematic changes so that this doesn't occur again?

您是否正在進行系統性變革以避免這種情況再次發生？

We are yeah, it's a focus on, it's an intensity, it's staying on whip. It's the frequency of us meeting as a management team to, to get on top of the process, the schedule, having more frequent meetings, more intensity. We are making system changes. We are upgrading our p next year, a little more automation, a little more workflow to get, you know, late invoices out the door a little more rapidly, but it, more of a process of just making it the top priority for management is how we improve this. So we, lost a little bit of our focus here more than anything else, but we are making some system improvements and we've intensified some of the, you know, that the timing and the process of how we're following up and pushing the envelope here.

是的，我們關注的是焦點、強度，以及持續的動力。這是我們作為管理團隊開會的頻率，為了掌握流程和時間表，會議更加頻繁，強度更大。我們正在進行系統變革。明年我們將升級我們的流程，提高自動化程度，增加工作流程，以便更快地處理逾期發票，但這更多的是一個使其成為管理層首要任務的過程。因此，我們在這方面失去了一些關注點，但我們正在進行一些系統改進，並加強了一些跟進和推動的時間安排和流程。

I, think with higher interest rates now, some of our customers are probably a little less inclined to part with their money. So maybe it's got a little more challenging recently as well. I think that could be a part of it, but we are making it a top priority for management to, to lean in hard here. Get the whip down, get invoice quickly and then preemptively call the customer and work hard to get the cash in the door. So we are working on this as a process and I do expect it to get back on track here in 25 and, and not make it. The challenge that it's become here for 24 for us.

我認為，現在利率較高，我們的一些客戶可能不太願意拿出自己的錢。因此最近可能也變得更具挑戰性了。我認為這可能是其中的一部分，但我們正在將管理層的努力作為首要任務。拿起鞭子，快速取得發票，然後先給客戶打電話，努力將現金送到客戶手上。因此，我們正在將此作為一個過程進行，我確實希望它能在 25 天內回到正軌，而不是失敗。這對我們來說是一個 24 小時的挑戰。

Okay. And, and looking back at the third quarter, I didn't catch this if you mentioned it, but was there any revenue impact from price increases? And on the other flip side, was there any revenue impact from exiting unprofitable business lines.

好的。回顧第三季度，如果您提到這一點，我並沒有註意到，但價格上漲對收入有影響嗎？另一方面，退出無利可圖的業務線是否會對收入產生影響？

On your second question? No, definitely, no,exiting of work. On the pricing side. Yes, ever. Same as we've seen throughout the year, there's been modest increase of pricing that same couple of percent we're seeing. I I would probably attribute much of the increase this quarter to pure pricing volume would have been flatter.

關於第二個問題？不，絕對不，辭職。在定價方面。是的，永遠如此。正如我們全年所看到的那樣，價格也小幅上漲了幾個百分點。我可能會將本季的大部分成長歸因於純定價量會更加平穩。

But yeah, our pricing strategies are still in place and, and very proactive and leading to improvement. But volume is what was off this quarter if you look at the you know, the sequential comparison. But yeah, there was some, some pricing benefits during the, third quarter.

但是，我們的定價策略仍然有效，並且非常積極主動，並且正在取得進步。但如果您進行連續比較的話，本季的銷量就有所下降。但是，第三季確實存在一些定價優勢。

just to add to that. We are constantly evaluating the mix of the business we have and the profitability of the business. Our commercial team has done a really good job in working with our customers to take unprofitable accounts and bring them back to some degree of profitability as long as we will continue to do that. Then we will not be walking away from any business. But if accounts are not profitable, we just can't continue to be in that, in that space with that, with that customer.

只是為了補充這一點。我們不斷評估現有業務組合和業務獲利能力。我們的商業團隊在與客戶合作方面做得非常出色，他們將接管無利可圖的帳戶並使其恢復到一定程度的盈利，只要我們繼續這樣做。這樣我們就不會放棄任何業務。但如果帳戶無法獲利，我們就無法繼續在那個領域、那個客戶生存。

That makes sense to me. One last question, I'll get back into Q you highlighted that health care hit the gross margins. Can you kind of quantify how much that was of an, of an impact in the quarter?

我覺得很有道理。最後一個問題，我回到問題一開始，您強調醫療保健影響了毛利率。您能否量化一下這對本季的影響有多大？

I mean it's we don't exactly quantify the amount but it was, you know, not hundreds of thousands but more like, you know, millions plus enough to impact, you know, that, that gross margin dollar, you know, period over period. So again, just more of a claims experience impact there. Not nothing more structural than that.

我的意思是，我們沒有確切量化金額，但你知道，不是幾十萬，而是幾百萬美元，足以影響毛利率。因此，再說一次，這只是對理賠經驗的影響更大。沒有什麼比這更具結構性了。

Okay. Fair enough. Thanks. I'll get back in here. Thank you for taking my questions.

好的。很公平。謝謝。我會回來的。感謝您回答我的問題。

Thank you.

謝謝。

Thank you one moment for our next question.

謝謝您，請回答我們的下一個問題。

Our next question comes from Christopher Sakai at Singular Research. Your line is now open.

我們的下一個問題來自 Singular Research 的 Christopher Sakai。您的線路現已開通。

Hi, good morning and to get back to that, the higher health care claims expense was this more of a one time thing? You know what, what happened there to, to really increase that.

大家早安，回到剛才的話題，更高的醫療保險理賠費用是一次性的事嗎？你知道那裡發生了什麼嗎？

We had, we had a couple of very high cost claimants. Today, high cost claimants are much more likely than they've been in the past. We had a couple of very high cost claimants and that and that did impact the overall claim activity. But when you remove those high cost claimants out of the equation, things are relatively normal.

我們曾經遇過幾位索賠金額非常高的索賠人。如今，高額費用索賠的可能性比過去大得多。我們有幾個索賠費用非常高，這確實影響了整體索賠活動。但當你把那些高成本索賠人排除在外時，事情就相對正常了。

Okay, great. Can you talk about the the.

好的，太好了。你能談談這個嗎？

Power generation and transmission revenue increase? Same with other process industries that seems to do pretty well this quarter? What do we expect the next quarter? And in, in 2025.

發電和輸電收入增加？與其他流程工業一樣，本季表現似乎也相當不錯嗎？我們對下一季有何預期？並且在2025年。

Yeah, good question, Chris, there, that's a two of our smaller sectors across the board of industries we serve. But as we've seen all year, all of our sectors have been up, you know, nicely with good robust growth. I mean, a lot of that's just due to the general manufacturing level of activity out there across multiple industries. So yeah, we should, we expect to see, you know, you know, decent growth, GDP plus kind of growth in, in some of those less pronounced sectors for us.

是的，克里斯，這個問題問得很好，這是我們服務的所有行業中的兩個較小的部門。但正如我們全年所看到的，我們所有的產業都呈現良好的成長態勢。我的意思是，這在很大程度上只是由於多個行業的整體製造活動水平所致。所以是的，我們應該期望看到 GDP 出現不錯的成長，加上一些不太明顯的產業的成長。

So yeah, we don't, we don't forecast necessarily at that level in our, in our outlook. But yeah, we do expect to see growth across a lot of those basic industrial and process oriented industries are all showing, you know, nice healthy level of activity. And we do expect that those kind of growth rates we've seen in 24 to continue in 25 for those for those sectors.

是的，在我們的展望中，我們不一定預測到那個層次。但是的，我們確實希望看到許多基礎工業和流程導向工業的成長都顯示出良好的健康活動水平。我們確實預計，這些行業在 24 年看到的成長率將在 25 年繼續保持。

Okay, great. And then so as far as the down downstream is concerned, do you anticipate an uptake in that next year?

好的，太好了。那麼就下游而言，您預計明年會成長嗎？

Yeah, good question, Chris. As we said, our, our spring was rather robust. Our fall down, you know, downstream was a little more moderate net net for the two combined, you know, a pretty good year overall for that sector. We see the same thing next year. We're looking at now with our longer range planning on when turnarounds happen. And yeah, we would expect to see a very similar year, like could be the inverse next year. We can't quite control the timing of when our customers want, you know, turnarounds to happen. But you may see a little bit of a flip flop.

是的，克里斯，你問得好。正如我們所說，我們的春天相當強勁。您知道，下游的淨下滑對於兩者而言稍微溫和一些，對於該行業而言，今年總體而言是相當不錯的一年。明年我們還會看到同樣的事情。我們現在正在製定更長遠的規劃，以確定何時出現轉機。是的，我們預計今年的情況將非常相似，甚至明年可能會相反。我們無法完全控制客戶希望發生週轉的時間。但你可能會看到一點變化。

But right now it looks like the, the fall might be a little stronger than the spring. So you may have sort of the opposite effect next year. But we are still looking at, at that and locking that down for next year. But over overall, we still, we do expect to see a good year again in downstream next year. Just a question of which half ends up being a little stronger than the other. You know, and we're still working through that, but it should be a good year again for that sector next year.

但現在看來，秋季的勢頭可能比春季更猛烈一些。因此明年可能會出現相反的效果。但我們仍在考慮這一點，並將確定明年的計劃。但總體而言，我們仍然預計明年下游將再次迎來好年頭。問題只是哪一半最後會比另一半稍微強一點。你知道，我們仍在努力解決這個問題，但明年對該行業來說應該又是豐收的一年。

Okay, great, thanks.

好的，太好了，謝謝。

Thank you.

謝謝。

One moment for our next question.

請稍候，回答下一個問題。

Our next question comes from Mitchell Pinheiro from Sturdivant & Co., your line is now open.

我們的下一個問題來自 Sturdivant & Co. 的 Mitchell Pinheiro，您的電話現在已經開通。

Hey, good morning.

嘿，早安。

Couple questions for you first on in the oil and gas segment. You know, the midstream been up and down and up and down. Any reason for the decline this particular quarter?

首先要問您幾個關於石油和天然氣領域的問題。您知道，中游一直起起伏伏。本季下滑的原因是什麼？

Oh, hey, that you said yeah, that it wasn't much of a decline this quarter. There was a large recurring piece of work turnaround work that does fall in midstream sometimes that occurred last year. So this year, by comparison looked off, but it was really last year was a little higher than normal due to some work that work that did not repeat in the current year. Is what led to that differential in the midstream.

哦，嘿，您說是的，本季的下降幅度並沒有太大。去年發生了大量重複性的工作週轉工作，有時確實會在中途發生。因此，相較之下，今年的情況不太好，但實際上去年的情況比正常情況要高一些，因為今年有些工作沒有重複。這就是導致中游出現差異的原因。

Okay. And then, you know, with oil prices kind of falling, I'm curious, you know, it is that, that didn't have any effect or did that have any effect in the court for the quarter's results? And, you know, with like Brent at 70 or below, do you think that would have any sort of impact on the, you know, the early next year's turnaround season?

好的。然後，你知道，隨著油價下跌，我很好奇，你知道，這對本季的業績有任何影響？您知道，如果布蘭特原油價格達到或低於 70，您認為這會對明年年初的轉機季節產生任何影響嗎？

We don't think so much. No, that still in the, in what we would deem to be a fairly ordinary band of pricing for, you know, future crude prices. No supply and demand matters more to them. Capacitization matters more. And crude prices, future prices do do generally affect probably the downstream more than anybody. The midstream and upstream are not very sensitive to crude prices.

我們沒想那麼多。不，我們認為這仍然處於未來原油價格相當正常的定價區間。對他們來說，沒有什麼供給與需求比這更重要。能力建構更為重要。原油價格和期貨價格總體上對下游的影響可能比任何人都大。中游和上游對原油價格較不敏感。

So, net net the current price where it is and where it's expected to be pricing wise. No, we do not see that impacting you know, any anything in 25 that's within the normal range of what's you know, our customers were anticipating the planning force. So, no, we do not expect the current prices to have any impact on a on the short term here now.

因此，淨當前價格與預期定價一致。不，我們並沒有發現這會產生任何影響，25% 的任何事情都在正常範圍內，我們的客戶正在期待規劃力量。因此，我們預期當前價格不會對短期產生任何影響。

Okay. And then, you know, you had two separate areas that, that, that sort of had delays or push out on, on, on revenue. One being in the data analytics, I think Manny talked about that. And then also aerospace I guess international aerospace there were projects pushed out or you mentioned market conditions. Can you just give a little more color about what's happening in both data analytics and the aerospace project? Push out?

好的。然後，你知道，你有兩個獨立的領域，這兩個領域都會出現延遲或對收入產生影響。其中之一是數據分析，我想曼尼已經談到了這一點。然後還有航空航天，我猜國際航空航天有一些項目被推遲了，或者你提到了市場狀況。您能否詳細介紹一下資料分析和航空航太專案的最新情況？推出去？

I'll address the second one and maybe Edwar you might address the data on the aerospace side. That that's just a function of that, that is our shop work where parts are coming to us. So we are at the mercy of you know, the supply chain there. Again, that that growth moderated, you know, slightly international is a little flatter. So the you know, the Airbus flat Airbus platform is a little more distended maybe than the Boeing platform is in North America, North America was up nicely in the quarter and has been all year. The European platform is is catching up a little bit but that's just some of the ongoings in that sector. There is a lot of supply chain, you know, glitches.

我將討論第二個問題，也許艾德沃您可以討論航空航天方面的數據。那隻是一個功能，那是我們的車間工作，零件送到我們這裡來。所以我們完全受那裡的供應鏈的支配。再次，你知道，成長速度有所放緩，國際上成長速度略顯平緩。所以你知道，空中巴士的扁平空中巴士平台可能比波音在北美的平台更加擴張，北美在本季以及全年都表現良好。歐洲平台正在一點點追趕，但這只是該領域正在進行的一些事情。你知道，供應鏈中存在著許多故障。

We're in a good one. Engine parts are still in short supply. That's a primary area where we do testing. So we, we believe the sector in which that we serve is a little more robust, but there is you know announcements and some, some strikes going on in the sector there on the final assembly side which you know could be affecting us and may have slightly in the quarter even impacted us.

我們處在一個好的時期。引擎零件仍然供應短缺。這是我們進行測試的主要區域。因此，我們相信我們所服務的行業會更加強勁一些，但你知道，最終組裝方面的一些公告和罷工可能會對我們產生影響，並且可能會本季度甚至對我們產生了輕微影響。

But again, we're looking at longer term, it is a high growth sector for us. So, you know, we do expect to continue, you know, mid mid teen kind of revenue growth in that sector globally. Again, North America got back to COVID levels faster than international, international, still catching back up and lagging a little bit. But, but again, we're agnostic to the platforms there, we can equally serve, serve them in the US versus Europe. You know, so we, believe that we'll continue to grow that again, the pace may might slow temporarily, but we feel very good about the the long term prospects in aerospace and defense and it's not just commercial aerospace.

但我們再次強調，從長遠來看，這對我們來說是一個高成長產業。所以，您知道，我們確實預計全球該行業的收入將繼續保持中等水平的成長。再次，北美恢復到 COVID 水平的速度比國際要快，國際上仍然在追趕並略有落後。但是，我們再次重申，我們對那裡的平台並無偏見，我們可以在美國和歐洲同等地為他們提供服務。你知道，所以我們相信我們會繼續成長，速度可能會暫時放緩，但我們對航空航天和國防領域的長期前景非常樂觀，而不僅僅是商業航空航天。

Yes, they may have a little more of the volatility at the moment. But that same sector also includes private space which is very strong right now and defense in there as well and other, you know, very stable sector and, and we can balance the load amongst the three to a certain extent as well. Do you want to address the data side Edwar or, I can explain that one too.

是的，他們目前的波動性可能會更大一些。但是同一區域也包括目前非常強大的私人空間，那裡也有防禦，還有其他非常穩定的區域，我們也可以在一定程度上平衡三者之間的負荷。你想解決數據方面的問題嗎，艾德沃，或者我也可以解釋一下。

The date of business is a little bit flat this year, primarily schedule primarily due to unanticipated delays with some implementations, but primarily due to push outs by our customers extending when they want to start the various projects. But we're very confident and comfortable that next year, we'll be back into the mid teen growth rates in 2025 in this high margin business. So, this is a temporary situation. It's a more of a timing issue. And we're comfortable that next year we'll be back on track.

今年的業務日期有點平坦，主要是因為在一些實施過程中出現了意外的延遲，但主要是因為我們的客戶推遲了他們想要啟動各個專案的時間。但我們非常有信心並且確信，到 2025 年，這個高利潤業務的成長率將重回十五六成左右。所以，這只是暫時的情況。這更多的是一個時間問題。我們相信明年我們將重回正軌。

So, you know, just hearing push outs and then seeing the account receivable, you know, stay stubbornly high. This isn't a function of your customers having having any, you know, I don't say financial difficulties but just starting to see some pressure on their own cash flows. Is there any, any of that happening or is it, is it very just some, some random and audit and, you know, push outs that just sort of all come together here over the last quarter or two?

所以，你知道，只是聽到延期的消息，然後看到應收帳款，你知道，一直居高不下。這並不是因為您的客戶遇到了什麼困難，您知道，我不是說他們遇到了財務困難，而是他們開始感受到自身現金流的一些壓力。有沒有發生過這樣的事情，還是只是一些隨機的、審計的和推出的事情，這些事情都是在過去一兩個季度發生的？

Yeah, I, I would not connect those. My, no, our customers are all blue chip good payers. We've had virtually no write offs, knock on wood for quite some time. So it's not their ability to pay. It's just their desire to pay, which we have to get better at, at pushing and driving. As I said on the, I think you know, speaking of interest rates, I do think that's relevant the last you know, a couple of years you get a real yield on overnight money.

是的，我不會將它們聯繫起來。不，我們的客戶都是藍籌優質付款人。我們實際上已經很久沒有出現任何註銷情況了。所以這不是他們的支付能力問題。這只是他們的付費意願，我們必須在推動和引導方面做得更好。正如我所說的，我認為，說到利率，我確實認為這與過去幾年你從隔夜資金中獲得的實際收益有關。

That was not the case a couple of years before that. So I think that's a factor. But that's on us, we have to work harder to pull, to pull that money in. But no, there's no cause and effect there, there's no issues on our customer side. It's just their desire to pay. It's not their ability to pay. That's not a credit concern that, that, that you should be implying there whatsoever. That's, not the issue.

而在此之前的幾年，情況並非如此。所以我認為這是一個因素。但這取決於我們，我們必須更努力地賺這些錢。但事實並非如此，這之間沒有因果關係，我們的客戶方面也沒有任何問題。這只是他們想要付錢而已。這不是他們的支付能力。這根本不是一個信用問題，你不應該暗示這一點。這不是問題。

Okay, fantastic. And then a couple other questions. So as you looked at the the the 2024 outlook, the bottom end of your revenue range remains at$ 725 million, but you did lower the bottom end of the adjust beda range by $4 million down to the$ 80 million mark. Is that a is that a function of maybe higher margin just, you know, is that a function of a higher margin, aerospace revenue being delayed? Why would the bottom end of that adjusted even do fall at the same revenue level?

好的，太棒了。還有一些其他問題。因此，當您查看 2024 年展望時，您的收入範圍底端仍為 7.25 億美元，但您確實將調整後收入範圍的底端降低了 400 萬美元，降至 8000 萬美元。這是不是可能只是利潤率更高，你知道，這是利潤率更高，但航空航太收入被延遲了？為什麼調整後的底端甚至會在相同的收入水準下下降？

It it it's exactly that niche. And as Manny said, the data, the data business is also, you know, a little more flat year over year, you two high flyers with higher margin profiles attached to them are lighter in the mix there. So you have an unfavorable sales mix affecting you affecting you there on the EBITA side where the EBITA GAAP opened up a little more than the revenue side because you, you lost the, you know, the the more attractive piece of the portfolio they underperformed. So that's why that even a number is a little lower in impact there when we lowered the scale of revenue.

它它它正是那個利基。正如曼尼所說，數據業務年比來看也比較平穩，你們兩家利潤率較高的公司在數據業務中的比重比較小。因此，不利的銷售組合會影響您的 EBITA 方面，其中 EBITA GAAP 比收入方面要高一點，因為您失去了表現不佳的更具吸引力的投資組合部分。所以這就是為什麼當我們降低收入規模時，即使是一個數字，其影響也會稍微小一些。

Okay. That's helpful. And then I guess like, I, I guess final question here for man and, or, you know, so I, you know, your reorganizational costs, you know, continue to be there. You know, I think it's I can't remember $55 million year-to-date and you did about $12 million last year when the, when do we see the reward costs?

好的。這很有幫助。然後我想，我想這裡的最後一個問題是，或者，你知道，所以我，你知道，你的重組成本，你知道，繼續存在。你知道，我認為我不記得今年迄今為止的數字是 5500 萬美元，而去年你賺了大約 1200 萬美元，我們什麼時候才能看到獎勵成本？

So, and and, and what has the current reward costs been centered around?

那麼，目前的獎勵成本集中在什麼地方？

And where, where are we, you know, in your know, in the, in the reorganization efforts are we in the eighth inning? Ninth inning? If you could talk about that, that would be helpful.

您知道，在重組工作中我們處於第八局的什麼位置？第九局？如果您能談論這個問題，那將會很有幫助。

I can tell you that we are constantly evaluating where we are and where we should be and we'll continue to make changes that are necessary. I wouldn't say we're in the ninth inning, but maybe the sixth or seventh inning because we have plans for 25 and beyond to continue to improve, where we are, how we operate and how efficient we are. We have areas that we've identified for 25 that we're going to be looking at to improve profitability. And in some of those cases, we will have to make some investments and there will be some costs associated to them. But the return on those investments will be more than adequate to justify the cost expense.

我可以告訴你，我們正在不斷評估我們目前所處的位置以及我們應該處於的位置，我們將繼續做出必要的改變。我不會說我們處於第九局，但可能是第六局或第七局，因為我們計劃在未來 25 年及以後繼續改進我們的位置、我們的運作方式和我們的效率。我們已經確定了 25 個領域，我們將著手提高獲利能力。在某些情況下，我們必須進行一些投資，而且會產生一些相關成本。但這些投資的回報足以證明成本支出的合理性。

Okay? Alright, well, that's all I have.

好的？好的，嗯，這就是我要說的全部了。

Thanks for the time.

感謝您的時間。

Thanks

謝謝

Thank you. I am now showing no further questions at this time. I would like to turn the conference back to Manny Stamatakis for closing remarks.

謝謝。我現在暫時沒有其他問題。我想請曼尼·斯塔馬塔基斯 (Manny Stamatakis) 致閉幕詞。

Thank you operator and thank you everyone for joining this important call today and also for your continued interest in mistrust.

謝謝接線員，也謝謝大家今天參加這次重要的電話會議，也謝謝你們對不信任的持續關注。

We look forward to providing you with an update on our business and progress achieved towards our ongoing initiatives on our next call. Everyone. Please have a safe and prosperous day.

我們期待在下次電話會議上向您通報我們的業務最新情況以及我們正在進行的計劃所取得的進展。每個人。祝您有平安、幸福的一天。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。