Modine Manufacturing Company (MOD) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Modine Manufacturing Company's First Quarter Fiscal 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

各位女士、先生，早安，歡迎參加 Modine Manufacturing Company 2022 會計年度第一季財報電話會議。（接線員指示）提醒各位，本次通話將被錄音。

I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer and Investor Relations.

現在我想將會議交給本次主持人——Kathy Powers 女士，副總裁、財務主管暨投資人關係負責人。

Good morning, and thank you for joining our conference call to discuss Modine's first quarter fiscal 2023 results. I'm joined on this call by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer. We'll be using slides for today's presentation, which can be accessed either through the webcast link or by accessing the PDF file posted on the Investor Relations section of our website modine.com. On Slide 3 is our notice regarding forward-looking statements. This call will contain forward-looking statements as outlined in our earnings release as well as in our company's filings with the Securities and Exchange Commission.

早安，感謝各位參加我們的電話會議，一同討論 Modine 2023 會計年度第一季業績。我與本次會議的與會者包括：總裁暨執行長 Neil Brinker，以及執行副總裁暨財務長 Mick Lucareli。今天的簡報將使用投影片，您可透過網路直播連結觀看，或至我們網站 modine.com 的投資人關係專區下載已張貼的 PDF 檔。第 3 頁為我們關於前瞻性陳述的提示。本次通話將包含前瞻性陳述，其定義如同我們的財報新聞稿以及本公司向美國證券交易委員會提交之文件所述。

With that, it's my pleasure to turn the call over to Neil.

接下來，我很榮幸將電話交給 Neil。

Thank you, Kathy, and good morning, everyone. As most of you are aware, we held our first Investor and Analyst Day in June, and hopefully, you had a chance to review those materials. Before launching into our quarterly results, I'd like to spend a couple of minutes highlighting the key themes and messages from the event. During our Investor Day presentation, we outlined our strategy for unlocking value in Modine, demonstrating our plan to transform our company for a sustainable future.

謝謝你，Kathy，各位早安。各位多數人都知道，我們在 6 月舉辦了首次投資人與分析師日活動，希望各位已經有機會檢視相關資料。在進入本季業績之前，我想先花幾分鐘重點回顧該活動的核心主題與訊息。在投資人日簡報中，我們闡述了釋放 Modine 價值的策略，並展示我們為打造永續未來而推動公司轉型的計畫。

The actions we are taking largely fall into 3 main categories. The first of these is focusing the organization. Many of these actions are well underway and are forming the basis for our transformation. This includes making 80/20 a core part of our DNA, building a high-performance organization and simplifying and segmenting the business. We are clearly seeing the results of these actions in our results this quarter.

我們正在採取的行動大致可歸納為三大類。第一類是聚焦組織。許多行動已在進行中，並構成我們轉型的基礎，包括將 80/20 納入我們的核心 DNA、打造高績效組織，以及簡化並分割業務。我們在本季業績中已清楚看到這些行動帶來的成果。

Next, we are moving on to the perform and deliver and accelerate profitable growth phases of our strategy. By moving to a more decentralized organization, we introduced a high level of accountability and empowerment. But in order to drive results, we will have a disciplined cadence and a review model with 80/20 at its core. This will allow us to maximize our share of target markets while simultaneously simplifying our product offerings and improving our operating margins. All of this, along with growth through product development, geographic expansion and targeted M&A will help us achieve our financial targets. Based on what we are delivering this quarter, particularly within our Climate Solutions segment, we are well on our way.

接著，我們正邁向策略中的「執行與交付」以及「加速獲利成長」階段。透過轉向更分權的組織，我們導入更高程度的責任歸屬與授權。但為了推動成果，我們將建立嚴謹的運作節奏與檢視模式，並以 80/20 為核心。這將使我們在簡化產品組合、提升營運利潤率的同時，最大化我們在目標市場的市占率。上述措施，加上透過產品開發、地理擴張與策略性併購（M&A）帶來的成長，將協助我們達成財務目標。從本季的交付成果來看，尤其是在我們的氣候解決方案（Climate Solutions）事業部，我們正穩步前進。

Now I'd like to briefly update you on the strategic progress we're making within each segment. Please turn to Slide 5. In our Climate Solutions segment, we are making significant progress against our goals. Much of the early work in this segment has involved building out the organization, providing resources where necessary and developing strategies to improve and grow. Our 3 product groups of HVAC and refrigeration, data centers and heat transfer products, all have teams in place and are executing on a well-defined strategy, fueled by strong drivers in targeted markets.

現在我想簡要更新各事業部的策略進展。請翻到第 5 頁。在氣候解決方案事業部，我們在目標推進上取得顯著進展。此事業部早期的許多工作，著重於建構組織、在必要處配置資源，以及制定改善與成長策略。我們的三個產品群——HVAC 與冷凍、資料中心，以及熱傳產品——皆已建立團隊並依循明確策略執行，並受惠於目標市場的強勁驅動因素。

In our HVAC and refrigeration, we continue to see strong demand for our heating products for warehousing, distribution center and greenhouse projects and we are outperforming our competition with service and are gaining market share. Preseason stocking orders are up more than 10% from the prior year, and we've onboarded 9 new distributors.

在 HVAC 與冷凍方面，我們持續看到倉儲、配送中心與溫室專案對我們供暖產品的強勁需求；我們以服務表現優於競爭對手並持續取得市占。旺季前備貨訂單較去年成長超過 10%，且我們已新增 9 家經銷商。

We are also continuing to expand our distribution network within the U.S. for our indoor air quality products, onboarding strategic reps in states where we previously lack coverage. This is critical for allowing us to increase our share of this market targeted at school ventilation, a market supported by significant government funding opportunities.

我們也持續在美國擴大室內空氣品質（IAQ）產品的通路網絡，在過去覆蓋不足的州引進策略性代理商。這對於提升我們在以學校通風為目標的市場占有率至關重要，而該市場亦受惠於政府提供的大量資金支持機會。

In IAQ, we are also simplifying our product offering while renewing our focus on product development. Our engineering teams are developing the next generation of school products focusing on a continued compliance with ever-increasing regulations and new refrigeration requirements. Simplifying our business reallocating resources will allow us to build a strong new product pipeline to drive future growth. Two recent examples include our work on a new abiotic gas cooler and new range of CO2 unit coolers with expected prototypes later this year.

在 IAQ 方面，我們也在簡化產品供應的同時，重新聚焦產品開發。我們的工程團隊正在開發下一代學校用產品，重點在於持續符合日益嚴格的法規，以及新的冷凍需求。透過簡化業務並重新配置資源，我們將能建立強健的新產品管線，以驅動未來成長。近期兩個例子包括：我們正在開發新的非生物（abiotic）氣體冷卻器，以及新的 CO2 單元冷卻器系列，預計於今年稍晚推出原型。

In data centers, our order book remains strong and we are continuing to make progress on our North American expansion. In fact, our current order book is rapidly filling capacity at our new U.S. chiller facility in Virginia. As evidenced, I would like to highlight the significant order from Corscale that we announced last month. This is a very strategic relationship for us, demonstrating that we can provide a full system solution for the U.S. data center market including state-of-the-art testing facilities. This is a huge win for Modine, further validating our strategy to expand in the U.S. data center market.

在資料中心方面，我們的訂單能見度依然強勁，且北美擴張持續取得進展。事實上，我們目前的訂單正快速填滿位於維吉尼亞州的新美國冷水機（chiller）工廠產能。作為佐證，我想特別提及我們上月宣布來自 Corscale 的重大訂單。這對我們而言是非常具策略性的合作關係，展現我們能為美國資料中心市場提供完整系統解決方案，包括最先進的測試設施。這是 Modine 的重大勝利，進一步驗證我們擴大美國資料中心市場布局的策略。

Heat transfer products, formerly known as the (inaudible) business, was an early adopter of 80/20 and they are clearly driving significant margin improvements. HTP is also benefiting from the strong growth in the European heat pump market, fueling record revenues from our Serbian manufacturing location. Capturing our share of this growing market is a major goal of our European business, and we're not only ahead of our plan, but are implementing initiatives to further increase our share. Overall, I'm very pleased with the performance of this segment and the focus of this team. We will continue to work on simplifying our product offerings across our verticals while also striving to overserve our top customers and identifying those new customers with the highest potential.

熱傳產品（Heat Transfer Products），先前稱為（聽不清）業務，是 80/20 的早期採用者，並且明顯推動了顯著的利潤率改善。HTP 也受惠於歐洲熱泵市場的強勁成長，帶動我們塞爾維亞製造據點創下營收新高。取得這個成長市場的市占是我們歐洲業務的重要目標；我們不僅進度超前，也正在推動各項措施以進一步提升市占。整體而言，我對此事業部的表現與團隊的聚焦感到非常滿意。我們將持續在各垂直領域簡化產品供應，同時致力於對我們的頂級客戶提供超越期待的服務，並辨識具最高潛力的新客戶。

Please turn to Page 6. We are focusing much of our energy in the PT segment with an 80/20 phase rollout plan. We are working on segmenting our business and setting up our internal organizational structure to support the product groups I outlined during the last earnings call, air cooled components, liquid cooled components and advanced solutions. This is a new approach for us. Shifting from a market focus to an organization built around technology. As we work through the 80/20 process and evolving our organizational structure, we continue to reallocate resources. For example, we have fewer employees supporting our legacy business and more supporting our high-growth EV business.

請翻到第 6 頁。我們在 PT 事業部投入大量精力，並採用 80/20 分階段推行計畫。我們正著手分割業務，並建立內部組織架構，以支援我在上次財報電話會議中提到的產品群：氣冷元件、液冷元件與先進解決方案。這對我們而言是一種新作法——從以市場為中心，轉向以技術為核心建立組織。隨著我們推進 80/20 流程並演進組織架構，我們也持續重新配置資源。例如，支援傳統業務的員工更少，而支援高成長電動車（EV）業務的員工更多。

The restructuring of our European business is in progress, and we are starting to see the benefit from these cost saving actions. As a reminder, we previously announced a plan to reduce our SG&A costs by approximately $20 million. This process is well underway, and we expect to see early benefits in the second half of the fiscal year.

我們歐洲業務的重整正在進行中，且我們已開始看到這些節省成本措施帶來的效益。提醒各位，我們先前宣布一項計畫，將銷售、一般及行政費用（SG&A）降低約 2,000 萬美元。此流程已大幅展開，我們預期在本會計年度下半年看到初步效益。

In our Advanced Solutions business, which includes our EV systems and components business, we are seeing strong development activities for zero-emission mobility, driven by government and business commitment to aggressive climate goals. This is creating opportunities for us, particularly in Europe and Brazil. In response, we are investigating expanding production of our EVantage battery thermal management system into our existing footprint in Europe, well ahead of our previous plans. We're also heavily involved in pursuit activities with 3 OEs for the last mile delivery applications.

在先進解決方案（Advanced Solutions）業務（包含我們的電動車系統與元件業務）方面，受政府與企業對積極氣候目標的承諾所驅動，我們看到零排放移動（zero-emission mobility）的開發活動強勁。這為我們帶來機會，尤其是在歐洲與巴西。因應此趨勢，我們正評估將 EVantage 電池熱管理系統的生產擴展至我們在歐洲既有的據點，且進度大幅超前原先規劃。我們也正積極參與與 3 家 OE（原廠）針對最後一哩配送應用的爭取案活動。

Although we are certainly focused on growth in Advanced Solutions business, the focus of the rest of our vehicular business is on simplification and margin improvement. We are building new organizational structures and teams to focus on our air cooled and liquid cooled businesses. In addition, we are updating and analyzing the underlying data, which is critical to creating detailed 80/20 action plans. I'm encouraged by the progress with these groups, and I look forward to reporting back as things accelerate.

雖然我們確實聚焦於先進解決方案業務的成長，但我們其餘車用業務的重點在於簡化與利潤率提升。我們正在建立新的組織架構與團隊，以聚焦於氣冷與液冷業務。此外，我們也在更新並分析底層數據，這對於制定細緻的 80/20 行動計畫至關重要。我對這些團隊的進展感到鼓舞，也期待在進展加速時向各位回報。

In addition to 80/20, the Performance Technologies team is focused on a number of operational improvements. Some examples include an emphasis on scrap reduction, and we're starting to see encouraging results in some of our key plants. We have also implemented major initiatives to reduce packaging costs, which have skyrocketed in the past year. This involves consolidation of SKUs to reduce costs and lower setup costs and taking advantage of preferred suppliers for inventory management and quantity discounts. We are also improving our plant's throughput, which has become a more significant issue due to supply chain disruptions and labor shortages. We are also using 80/20 to address the most critical items, including enhanced training, clearing road blocks and capacity allocation.

除了 80/20 之外，績效技術（Performance Technologies）團隊也聚焦於多項營運改善。例子包括強調降低報廢（scrap），我們已在部分關鍵工廠看到令人鼓舞的成果。我們也推動重大措施以降低包裝成本，而包裝成本在過去一年大幅飆升。這些措施包括整併 SKU 以降低成本與減少換線/設定成本，並利用優選供應商進行庫存管理與取得數量折扣。我們也在提升工廠的產出吞吐量（throughput），由於供應鏈中斷與勞動力短缺，這已成為更顯著的議題。我們也運用 80/20 來處理最關鍵的項目，包括加強訓練、排除障礙，以及產能配置。

Last, COVID-related shutdowns in China impacted our production levels and continued into Q1 as well. That being said, we are starting to see recovery as operations resumed this quarter, and it appears that the markets are cautiously rebounding.

最後，中國與 COVID 相關的停工影響了我們的產量，且也延續到第一季（Q1）。儘管如此，隨著本季營運恢復，我們開始看到復甦跡象，市場似乎也在謹慎回升。

The actions we are taking today are designed to provide for future profitable growth as we shift away from certain markets and double down on others. There are strong secular drivers for these businesses, similar to our Climate Solutions business, that will drive the need for high-tech solutions for thermal management and electrification and in other areas such as energy production. This, coupled with the hard work we are doing to improve the cost structure and our air cooled and liquid cooled businesses are expected to produce meaningful margin expansion in the near future.

我們今天採取的行動，旨在在我們自部分市場撤出並加碼投入其他市場之際，為未來的獲利成長奠定基礎。這些業務具備強勁的長期結構性驅動因素，與我們的氣候解決方案（Climate Solutions）業務類似，將推動對熱管理、電氣化以及能源生產等其他領域之高科技解決方案的需求。再加上我們為改善成本結構所做的努力，以及我們的風冷與液冷業務，預期在不久的將來將帶來顯著的毛利率擴張。

Now I would like to turn the call over to Mick, who will review our results for the quarter and provide segment financial updates.

現在我想把電話會議交給 Mick，由他回顧本季業績並提供各事業部的財務更新。

Thanks, Neil. Please turn to Slide 7. Climate Solutions had an exceptional quarter with solid revenue growth and outstanding earnings improvement. Revenue was up 18% over the prior year. Sales of heat transfer products increased nearly $23 million or 19%. In addition to strength across the North American markets, we're also benefiting from the strong European heat pump market. Data center sales were up 40% or $7 million as we continue to see strong demand from both the hyperscale and co-location markets. HVAC&R sales were up 11% or $8 million with solid preseason stocking sales in heating and continued growth in school products.

謝謝你，Neil。請翻到投影片 7。氣候解決方案本季表現卓越，營收穩健成長、獲利大幅改善。營收較去年同期成長 18%。熱傳產品銷售增加近 2,300 萬美元或 19%。除了北美市場全面走強外，我們也受惠於歐洲熱泵市場的強勁表現。資料中心銷售成長 40% 或 700 萬美元，因我們持續看到超大規模（hyperscale）與機房代管（co-location）市場的強勁需求。HVAC&R 銷售成長 11% 或 800 萬美元，受惠於供暖產品的季前備貨銷售穩健，以及學校產品持續成長。

Adjusted EBITDA increased 91% from the prior year, resulting in a 13.3% margin and a 510 basis point improvement. The earnings and margin increases were driven by several factors, including higher sales volumes, commercial pricing initiatives and operational improvements. SG&A declined as a percentage of sales by 90 basis points, but was slightly higher than the prior year, mainly due to higher commissions.

調整後 EBITDA 較去年同期增加 91%，使利潤率達 13.3%，並提升 510 個基點。獲利與利潤率的提升由多項因素帶動，包括較高的銷售量、商業定價措施以及營運改善。SG&A 佔銷售比重下降 90 個基點，但金額略高於去年，主要因佣金增加。

As previously stated, Climate Solutions was the first business segment to implement 80/20. Based on the last 2 quarters, it's clear we're beginning to see the benefits and look forward to continued improvements.

如先前所述，氣候解決方案是第一個導入 80/20 的事業部。從過去兩季的表現來看，很明顯我們開始看到效益，並期待持續改善。

Please turn to Slide 8. Sales in the Performance Technologies segment were up 2% or $7 million. Volume was relatively flat versus the prior year as the positive pricing impacts were partially offset by negative foreign exchange rates. Within the segment, Advanced Solutions sales were up 18% as we continue to benefit from growth in our coatings and electric vehicle product sales. Air cooled product sales increased 8%, primarily due to higher pricing. Liquid cooled sales declined 7% due in part to the impact of the COVID lockdowns in China and negative foreign exchange in the quarter. As Neil mentioned, we're starting to see some progress in China, and we expect these sales to recover.

請翻到投影片 8。績效科技（Performance Technologies）事業部銷售成長 2% 或 700 萬美元。與去年同期相比，出貨量大致持平，正向的定價影響部分被不利的匯率變動所抵銷。在該事業部內，先進解決方案（Advanced Solutions）銷售成長 18%，我們持續受惠於塗層與電動車產品銷售的成長。風冷產品銷售成長 8%，主要由較高的價格所帶動。液冷銷售下滑 7%，部分原因是中國 COVID 封控的影響，以及本季不利的匯率變動。如 Neil 所提，我們開始看到中國出現一些進展，並預期這些銷售將會回升。

As anticipated, earnings were negatively impacted by several factors, including higher material costs, and ongoing supply chain disruptions. Adjusted EBITDA declined by $4 million, resulting in a margin of 5.6%. Unfortunately, raw material costs have remained significantly higher than a year ago. As previously discussed, we expect to recoup the majority of raw material costs through pass-through agreements on a lagged basis. In addition, we are actively addressing other unprecedented inflationary items in the supply chain with our customers.

如預期，獲利受到多項因素的不利影響，包括材料成本上升以及供應鏈持續中斷。調整後 EBITDA 下降 400 萬美元，使利潤率為 5.6%。不幸的是，原物料成本仍顯著高於一年前。如先前討論，我們預期將透過轉嫁（pass-through）協議在滯後的基礎上收回大部分原物料成本。此外，我們也正與客戶積極處理供應鏈中其他前所未見的通膨項目。

We're also working to lower our cost structure. The previously announced restructuring actions are having a positive impact on SG&A, which was down $2 million from the prior year, including a positive foreign exchange impact. As discussed last quarter, we anticipated that Q1 would be a difficult comparison, especially because of the higher material costs. Going forward, we expect to benefit from sequential margin improvements and easier comparables. First, we'll continue to benefit from higher prices as our pass-through agreements take hold. Next, we expect the year-over-year material cost comparisons to be less of an impact. Last and most importantly, our key metals costs have declined significantly over the last several months.

我們也在努力降低成本結構。先前宣布的重整措施對 SG&A 產生正面影響，較去年同期減少 200 萬美元，其中包含匯率帶來的正面影響。如上季所述，我們預期第一季（Q1）會是艱難的比較基期，特別是因材料成本較高。展望未來，我們預期將受惠於逐季的利潤率改善以及較容易的比較基期。首先，隨著轉嫁協議開始發揮作用，我們將持續受惠於較高的價格。其次，材料成本的年對年比較影響預期將減弱。最後且最重要的是，我們的關鍵金屬成本在過去幾個月已大幅下降。

In addition to the cost and pricing, the Performance Technologies segment is beginning to make progress with regards to 80/20. As Neil discussed, the segment started after Climate Solutions but we anticipate that we'll begin to see positive results from 80/20 later this year.

除了成本與定價之外，績效科技事業部在 80/20 方面也開始取得進展。如 Neil 所述，該事業部在氣候解決方案之後才開始導入，但我們預期今年稍晚將開始看到 80/20 的正面成果。

Now let's review the total company results. Please turn to Slide 9. First quarter sales were up 9% or $46 million, driven by strong gains in Climate Solutions. Revenue was up 15%, excluding a $27 million negative FX impact. The main growth drivers of revenue were materials recovery and other pricing of $41 million and higher volume of $32 million. We're pleased to report that adjusted EBITDA increased 27% or $9 million. This represents 110 basis point improvement. Conversion of the higher sales volume plus improved pricing accounted for the majority of the earnings increase, continuing a positive trend from last quarter.

現在我們來回顧公司整體業績。請翻到投影片 9。第一季銷售成長 9% 或 4,600 萬美元，主要由氣候解決方案的強勁成長所帶動。若排除 2,700 萬美元的不利匯率影響，營收成長 15%。營收成長的主要驅動因素為材料回收與其他定價帶來的 4,100 萬美元，以及較高出貨量帶來的 3,200 萬美元。我們很高興報告調整後 EBITDA 成長 27% 或 900 萬美元，代表提升 110 個基點。較高銷售量的轉換效益加上定價改善，貢獻了大部分的獲利增幅，延續上季的正向趨勢。

During the quarter, commodity metals, freight and packaging increased from the prior year, but we were generally able to offset the majority of these costs through pricing recovery. SG&A declined $3 million primarily due to lower environmental charges and a decrease in strategic reorganization and automotive exit costs. Adjusted earnings per share of $0.32 was $0.12 above the prior year.

本季，大宗金屬、運費與包裝成本較去年同期上升，但我們整體上能透過價格回收抵銷其中大部分成本。SG&A 減少 300 萬美元，主要因環境相關費用降低，以及策略性重組與退出汽車業務成本下降。調整後每股盈餘為 0.32 美元，較去年同期高出 0.12 美元。

Momentum from our various 80/20 actions have resulted in significant year-over-year improvement. Furthermore, the recent declines in raw material costs should bode well for the remainder of the fiscal year.

我們各項 80/20 行動所帶來的動能，使年對年改善顯著。此外，近期原物料成本下降，對本財年剩餘期間應屬利多。

Before moving on, I'd like to point out that we had $2.7 million in Q1 earnings adjustments. There was a $1.5 million charge primarily related to previously announced plans to implement targeted headcount reductions in the European vehicular business. The remaining $1.2 million was for environmental charges related to a previously owned U.S. manufacturing facility.

在繼續之前，我想指出第一季（Q1）我們有 270 萬美元的獲利調整項目。其中 150 萬美元的費用主要與先前宣布的計畫相關，即在歐洲車用業務實施針對性的裁員。其餘 120 萬美元為與先前持有的美國製造設施相關的環境費用。

Now moving to cash flow metrics. Please turn to Slide 10. We generated $4 million of positive free cash flow in Q1. This includes $5 million of cash payments, primarily for restructuring activities and strategic reorganization costs. As noted last quarter, we're anticipating positive free cash flow in fiscal '23 driven by earnings improvements in working capital management. This also includes approximately $20 million of anticipated cash restructuring payments, mostly tied to our cost reduction plans in Europe.

接著看現金流量指標。請翻到投影片 10。我們在第一季（Q1）產生 400 萬美元的正向自由現金流。這包含 500 萬美元的現金支付，主要用於重整活動與策略性重組成本。如上季所述，我們預期 2023 財年將產生正向自由現金流，主要由獲利改善與營運資金管理所帶動。這也包含約 2,000 萬美元預期的重整現金支付，多數與我們在歐洲的降本計畫相關。

I'm happy to report that we repurchased 100,000 shares this quarter as part of our share repurchase program and plan to repurchase a similar level of shares each quarter over the balance of the year. As a reminder, our program is currently focused on offsetting the dilutive impact of incentive compensation programs.

我很高興報告，我們本季依照庫藏股回購計畫回購了 100,000 股，並計畫在今年剩餘各季以類似水準持續回購。提醒各位，我們目前的計畫重點在於抵銷激勵性薪酬計畫所造成的稀釋影響。

Net debt of $330 million as of June 30, was slightly lower than the end of the prior fiscal year, improving $3 million. Our cash balance was $59 million as of June 30, and we finished the quarter with a leverage ratio of 2.1 which is within our targeted range and lower versus the prior quarter.

截至 6 月 30 日，淨負債為 3.30 億美元，較上一財年年底略低，改善 300 萬美元。截至 6 月 30 日，我們的現金餘額為 5,900 萬美元，本季結束時槓桿比率為 2.1，落在我們的目標區間內，且較上一季降低。

Now let's turn to Slide 11 for our fiscal 2023 outlook. As you all know well, the economy remains volatile with many factors to consider, including ongoing inflationary pressure in labor, materials and overhead plus rising energy costs, supply chain shortages and the Ukrainian conflict. While balancing these factors with a very strong first quarter, we're reaffirming our guidance this quarter. We anticipate revenue to be up 6% to 12% in fiscal '23, with sales increasing in most end markets. We also anticipate that adjusted EBITDA will be in the range of $180 million to $195 million. This represents an increase of 13% to 23% versus the prior year. Given the strong start to the year, however, we currently expect our results to be towards the top end of the range. We'll further reassess our full year outlook and the associated range after Q2.

現在請翻到投影片 11，說明我們對 2023 財年的展望。各位都很清楚，經濟仍然波動，需考量多項因素，包括勞動、材料與間接費用的持續通膨壓力、能源成本上升、供應鏈短缺以及烏克蘭衝突。在權衡這些因素並考量第一季非常強勁的表現後，我們本季重申指引。我們預期 2023 財年營收將成長 6% 至 12%，多數終端市場的銷售將增加。我們也預期調整後 EBITDA 將落在 1.80 億至 1.95 億美元區間，較去年增加 13% 至 23%。然而，鑑於年度開局強勁，我們目前預期結果將更接近區間上緣。我們將在第二季（Q2）後，進一步重新評估全年展望及相關區間。

To wrap up, we're pleased with the first quarter results, especially in several key businesses that are beginning to demonstrate 80/20 improvements. Neil and I are very encouraged by the revenue and margin outlook for our Climate Solutions segment. In addition, we expect full year margin improvement in Performance Technologies as we recover from significant material cost increases and benefit from 80/20 actions that are currently underway.

總結來說，我們對第一季業績感到滿意，特別是數個關鍵業務已開始展現 80/20 改善。Neil 和我對氣候解決方案事業部的營收與利潤率展望感到非常鼓舞。此外，隨著我們從顯著的材料成本上升中恢復，並受惠於目前正在推進的 80/20 行動，我們預期績效科技在全年將實現利潤率改善。

With that, Neil and I will be happy to take your questions.

那麼，Neil 和我很樂意回答各位的提問。

(Operator Instructions) Our first question comes from the line of Matt Summerville of D.A. Davidson.

（接線員指示）我們的第一個問題來自 D.A. Davidson 的 Matt Summerville。

A couple of questions. First, can you guys maybe speak a moment to how we should be thinking about the quarterly earnings cadence, maybe the front half, back half weighting, if that's easier. And the reason I ask I understand there's some seasonality in your business, but you're going to have more of these material pass-throughs rolling through. So I guess maybe talk about what I just asked in the context of how we should be thinking about the material pass-through, how that phases in as well? And then I have a follow-up.

我有幾個問題。第一個，你們能否簡單談一下我們應該如何看待季度獲利的節奏，例如上半年、下半年的權重分配（如果這樣比較容易回答）。我之所以這麼問，是因為我理解你們的業務有一些季節性，但你們也會有更多這類重大的材料轉嫁（pass-through）逐步反映出來。所以我想請你們在材料轉嫁的脈絡下，談談我剛才問的獲利節奏，以及材料轉嫁會如何分期（phase in）？然後我還有一個追問。

Yes. Matt, good morning or good afternoon. Yes. As we look at the year, and clearly, on the positive side, one real strong element here with Q1. And when we came out of a real strong Q4 with Climate Solutions and the old CIS segment, we really outperformed on the climate side, which can typically be a more quiet quarter for us seasonality wise. So that's the positive news and really good there. As we look at the full year run rate, clearly, our guidance, we now feel like we're trending towards the high end based on that strong Q1. If we look at that guidance, we're definitely planning to have a margin improvement from last year and the full year run rate above Q1.

是的。Matt，早安或午安。是的。當我們看今年的情況，顯然在正面因素上，第一季有一個非常強勁的要素。而且在我們剛結束一個非常強勁的第四季（Climate Solutions 與舊 CIS 事業部）之後，我們在氣候端的表現確實超出預期；而就季節性而言，這通常對我們來說可能是相對較安靜的一季。所以這是好消息，也確實非常不錯。就全年運行率來看，顯然，基於第一季的強勁表現，我們現在覺得我們正朝向指引區間的高端發展。若看這個指引，我們確實規劃相較去年有毛利率改善，且全年運行率會高於第一季。

So I think two things I'd say is we see revenue going up from the Q1 level probably more level loaded across the last 3 quarters. The increase will be due partly seasonality in our heating business will help plus as you mentioned pricing. So a little bit higher revenue, not pretty level loaded through the last 3 quarters. And then a sequential margin improvement in each of the next 3 quarters. So we see a little bit of a jump in Q2, probably a slightly larger increase in Q3 and then one more increase in Q4 from an EBITDA margin. I hope that helps.

所以我想我會說兩點：我們看到營收會從第一季的水準往上走，且在接下來三個季度可能會更平均地分布。這個增幅部分來自我們供暖業務的季節性助益，另外也如你所提到的，還有定價因素。因此營收會略高一些，並在後三季相對平均。接著是接下來三季的利潤率逐季改善。我們看到第二季會有一點跳升，第三季可能會有稍大一些的提升，然後第四季在 EBITDA 利潤率上再提升一次。希望這有幫助。

Yes, it does. Can you maybe give a little bit more color on how that $20 million of restructuring savings phases in? And then can you also comment on what the COVID-19 mandated sort of lockdown impact would have been on revenue and profitability for you guys during the quarter and whether or not all of that has been recouped at this point?

有的，確實有幫助。你們能否再多補充一些關於那 2,000 萬美元重整節省（restructuring savings）會如何分期反映？另外，你們也能否評論一下，本季 COVID-19 強制性封控對你們的營收與獲利大概造成了什麼影響，以及截至目前是否都已經追回（recouped）？

Yes. I'll go first, Matt, and Neil can add any color on the situation in China. So the restructuring program, the headcount reduction plan in Europe were coming to more final stages as far as legalities of that program. And the targeted savings, as you said, was about $20 million. We think based on the timing of how the program actually works and how the severance program kicks in from a timing, we could get a little bit of benefit, maybe a quarter's worth this year and then the full -- call it, the full $20 million next fiscal year. So we're planning to get a portion of it this year. And I think for now, I don't feel comfortable saying maybe a quarter and then the full benefit beginning next year.

好的。Matt，我先回答，Neil 也可以補充中國那邊的情況。關於重整計畫，歐洲的人力縮減方案在法律程序方面正接近最後階段。你提到的目標節省大約是 2,000 萬美元。我們認為，基於該方案實際運作的時點，以及資遣方案啟動的時間點，我們今年可能會取得一些效益，或許大約是一季的效益；而完整的——就稱為完整的 2,000 萬美元——會在下一個會計年度反映。因此我們規劃今年會取得其中一部分。就目前而言，我不太方便更精確地說，可能是一季左右，然後明年開始取得完整效益。

From a China standpoint, I would estimate at least $10 million of negative revenue impact from COVID-related shutdowns. And I'll just pause, see if Neil wants to add any color to what's happening over there.

從中國的角度，我估計 COVID 相關停工至少造成約 1,000 萬美元的營收負面影響。我先停一下，看看 Neil 是否要補充一些那邊正在發生的情況。

Yes. And those are orders, Matt, good question. Thanks. This is Neil. Those are orders that were pushed into the following months. So between $5 million and $10 million in April, May, the plants were shut down in China for a few weeks, and then we were back running at limited levels because of the COVID impact. So there's been some starts and stops based on our plant shutdowns, but we expect a recovery here in the coming weeks.

是的。Matt，那些是訂單，很好的問題，謝謝。我是 Neil。那些訂單被延後到接下來的月份。因此在 4 月、5 月之間大約有 500 萬到 1,000 萬美元；中國的工廠停工了幾週，之後因為 COVID 的影響我們以受限的產能恢復運作。所以基於工廠停工，我們有一些反覆啟停的情況，但我們預期未來幾週會出現復甦。

Your next question comes from the line of Steve Ferazani with Sidoti & Company.

下一個問題來自 Sidoti & Company 的 Steve Ferazani。

Wanted to ask about progress with data centers, particularly given the opening of the new Virginia facility. It looks like you're up 40% year-over-year in the first quarter, but you're guiding for 50% to 60%. How much of that is the ramp at Virginia? And can you talk a little bit about what the new facility adds for you?

我想問一下資料中心業務的進展，特別是考量到新的維吉尼亞廠區已啟用。看起來你們第一季年增 40%，但你們的指引是 50% 到 60%。其中有多少是來自維吉尼亞的爬坡（ramp）？以及你們能否談談新廠為你們帶來了哪些新增能力？

Yes. Good question, Steve. This is Neil. Thanks for that. So we've made great progress with the ramp-up of the facility in Virginia and Rockbridge. The team has worked diligently with our lead facility with the transfer of manufacturing capabilities. We're in the process of standing up our testing facility, state-of-the-art testing facility in Rockbridge, and we've already started taking orders at a rate that have outpaced what my expectations were. So we're looking at filling the factory in the next couple of years where we're at with the order rates and the intake rates that we're taking them today. And as you know, that's a different product for us in North America. That's the chiller products. So this is a nice complement to the products that we already offer in North America and this is in addition to.

好的。很好的問題，Steve。我是 Neil，謝謝你的提問。我們在維吉尼亞 Rockbridge 廠的爬坡方面取得了很大進展。團隊與我們的主力廠密切合作，努力完成製造能力的移轉。我們正在建置 Rockbridge 的測試設施——最先進的測試設施——而且我們已經開始接單，接單速度超過我原先的預期。以目前的訂單速度與接單量來看，我們預期在未來幾年內把工廠產能填滿。你也知道，這對我們在北美而言是不同的產品——冷水機（chiller）產品。因此，這是對我們既有北美產品組合的一個很好的補充，而且這是額外新增的。

So very pleased with where we're at with Rockbridge. The volume that we'll start to see will have in the back half of this year will be low, but that will start to ramp up significantly next year as we start to see these orders transfer or transpire into actual sales and revenue.

所以我們對 Rockbridge 目前的進展非常滿意。今年下半年開始看到的出貨量會偏低，但明年會開始顯著爬升，因為我們會看到這些訂單逐步轉化為實際銷售與營收。

Great. I want to turn for a second to cash flow on the balance sheet. Clearly, the cash balance got strengthened. I'm just a little confused by the addition of $12 million in debt, and I don't know if that's for geographical reasons where the cash is located, if you can address that? And also starting up the share repurchase, is that going to be a focus of cash flow? Or how should we think about cash flow usage this year?

很好。我想先轉到資產負債表上的現金流。顯然現金餘額變得更強健。不過我對新增 1,200 萬美元的負債有點困惑；我不確定是不是因為地理因素、現金所在位置的關係——如果你們能說明一下。還有，啟動庫藏股回購，這會成為現金流使用的重點嗎？或者我們今年應該如何看待現金流的運用？

Yes. Steve, the cash and debt is really quarter-to-quarter, as you said, a really an issue of where the borrowing was needed in a quarter and where cash sits and our ability in any period to move it, relocate it. So we really are tracking to the net debt, which was down about $3 million. And to your point, it was really operational tactics of where some debt went up or where cash went up.

好的。Steve，現金與負債的變動確實是逐季的；如你所說，主要是某一季在哪裡需要借款、以及現金在哪裡、以及我們在任何期間將其調動或重新配置的能力問題。因此我們真正追蹤的是淨負債（net debt），它下降了大約 300 萬美元。正如你指出的，這主要是營運層面的策略操作：某些地方的負債上升或某些地方的現金上升。

And from a share buyback we're planning to probably purchase, it's a relatively immaterial from a cash flow, about 100,000 shares a quarter right now as part of our program to offset any antidilutive program tied to any incentive compensation. So that's the way we're thinking about it right now for the balance of the year.

至於庫藏股回購，我們目前規劃每季大概買回 10 萬股；就現金流而言相對不具重大性。這是我們計畫的一部分，用來抵銷與任何獎酬性薪酬（incentive compensation）相關的反稀釋（antidilutive）影響。這就是我們目前對今年剩餘期間的看法。

When I think about some new segments, just housekeeping question, they don't -- CIS, if I do the math, it looks like there's about $5 million or $6 million that might have moved that didn't necessarily go HD and auto right into performance. Why not -- is there anything big there you can talk about that you moved from 1 segment to the other rather than just matching up HD and auto into 1 and building HVAC into CIS and the other?

我想問一下新的事業分部，算是個例行整理（housekeeping）問題。CIS——如果我自己算一下，看起來大約有 500 萬或 600 萬美元被移動了，但不一定是把 HD 和 auto 直接併入 Performance。為什麼不是——那裡有什麼比較大的項目可以談談嗎？也就是你們把某些業務從一個分部移到另一個分部，而不是單純把 HD 和 auto 合併成一個，然後把建築 HVAC 併入 CIS，另一個則是……？

Yes. For the most part, Steve, it is collapsing CIS and HVAC and auto and HDE, the one moving piece that you'd see in there is we have a coatings business. It's relatively small. That was part of CIS that went to peak performance technologies. So while your math is slightly off is we've put coatings in the advanced area under Performance Technologies.

是的。Steve，大致上確實是把 CIS 與 HVAC、以及 auto 與 HDE 進行整併。你在那裡看到的一個變動項是：我們有一個塗料（coatings）業務，規模相對小。它原本屬於 CIS，後來被歸到 Peak Performance Technologies。也就是說，你的計算稍微有點差異，是因為我們把塗料放到 Performance Technologies 之下的先進領域。

Okay. That makes sense. And if I could just squeeze one more in. As we're in the later stages of earnings calls, certainly some industrial that we cover have noted given the geopolitical issues of the China shutdown, the Ukrainian conflict, they saw at least some material spike in material prices that's then going to flow through the P&L in the next -- in the September quarter that could pressure margins next quarter as well as just in general component shortages at least not getting better but getting worse, see if you could address those 2 pieces.

好的。這就合理了。如果我再擠一個問題。現在我們已經進入財報電話會議的後段，我所覆蓋的一些工業公司提到，鑑於中國停工的地緣政治問題、以及烏克蘭衝突，他們看到材料價格至少出現一些大幅上漲，而這將在接下來——在 9 月季度——流入損益表（P&L），可能也會在下一季壓抑利潤率；另外還有零組件短缺的問題，至少沒有改善、甚至更糟。想請你們回應這兩點。

I'll go Neil, from the metals, and I'll let Neil add the logistical on the rest of the supply chain. For us, one of the things we're encouraged about is about 3 months ago or so, we saw the spike in key metals for us, aluminum, copper, steel are big ones. So right now, Steve, we have a little bit of an opposite situation in a good way. We've since 3/31 or March 31, copper and aluminum are down about 30% and stainless steel and other forms of steel probably more in the last month are down a similar amount. So early to claim victory for the full year, but for the visibility we have, that's really good for materials. We're flowing through our plants.

我先由 Neil 來回答金屬方面的問題，至於供應鏈其餘部分的物流，我會讓 Neil 補充。就我們而言，有一點讓我們感到鼓舞的是，大約 3 個月前左右，我們看到對我們而言的關鍵金屬出現飆升，鋁、銅、鋼都是主要項目。所以現在，Steve，我們在某種程度上出現了一個相反的情況，而且是好的方向。自 3/31（3 月 31 日）以來，銅和鋁下跌了約 30%，不鏽鋼以及其他形式的鋼材，可能在最近一個月也下跌了類似幅度。現在就宣稱全年勝利還言之過早，但就我們目前的能見度而言，這對材料成本非常有利。我們正把這些變化導入我們的工廠。

I'll let Neil comment just about our supply chain challenges about getting parts.

我讓 Neil 來評論一下我們在取得零件方面的供應鏈挑戰。

Yes, Steve. No, it's a good question and a fair question because the disruption in the supply chain continues as it has been going on for quarters if not a couple of years now as we recover from the pandemic. But we've taken some strategic positions in inventory across multiple geographies and across our key plants. So there has been an increase in inventory to combat this, especially as we've seen some of our supply chain increase their overall lead times.

是的，Steve。不，這是個好問題，也是個合理的問題，因為供應鏈的中斷仍在持續；在我們從疫情中復甦的過程中，這種情況已經持續了好幾季，甚至可能有一兩年了。不過，我們已在多個地理區域以及我們的關鍵工廠採取了一些策略性的庫存配置。因此，為了因應這點，我們增加了庫存，特別是在我們看到部分供應鏈的整體交期拉長之後。

We do have a key components watch list there are a few, around 10 components that could potentially impact us in a meaningful way, we have them on a daily management process. So we balance expediting freight or working directly with a supply chain with how we take strategic key positions with our inventory, and I've been pretty pleased with how the organization and how the company has rallied around that thus far.

我們確實有一份關鍵零組件觀察清單，其中有少數、約 10 項零組件可能會對我們造成實質影響，我們把它們納入每日管理流程。因此，我們在加急運輸、或直接與供應鏈合作之間取得平衡，同時也透過庫存採取策略性的關鍵配置；到目前為止，我對組織以及公司在這方面的動員與配合相當滿意。

(Operator Instructions) Your next question comes from the line of Brian Sponheimer with Gamco Investors.

（接線員指示）您的下一個問題來自 Gamco Investors 的 Brian Sponheimer。

I just had a quick question. You mentioned on the performance side, EV sales rising. Can you quantify that as to what the EV sales were in the quarter? I understand it's a low base, and you're really kind of just getting started on this journey, but just to put in the numbers would be helpful.

我有個簡短的問題。你提到在績效方面，電動車（EV）銷售正在上升。你能量化一下本季的 EV 銷售是多少嗎？我理解基期很低，而且你們其實才剛開始這段旅程，但如果能提供數字會很有幫助。

Yes. No, that's a great question, Brian. This is Neil. Thanks for that. Last quarter, when we talked about EV and where we stood, we talked about our pursuit and what we're engaged with customers, that number was 75%, that's up to 93%. So we've increased our engagement level with the customers. Our prototypes last quarter was at 46% and today, we're at 54%, and that is what we see from that is 12 program wins, and that will equate to roughly $70 million at full production run rate.

是的。不，這是個很好的問題，Brian。我是 Neil，謝謝你。上一季我們談到 EV 以及我們的進展時，我們提到我們的追案情況以及與客戶的合作參與度，當時那個數字是 75%，現在提升到 93%。所以我們提高了與客戶的互動參與程度。上一季我們的原型（prototypes）比例是 46%，今天是 54%；我們從中看到的是 12 個專案得標（program wins），按滿產的量產運行率（full production run rate）計算，約相當於 7,000 萬美元。

Okay. That's terrific. Thinking about the EV solutions that you have planned, is there anything from a technology standpoint that's either adjacent or complementary that -- do you want to either build in-house or buy through M&A?

好的。那很棒。就你們規劃的 EV 解決方案而言，從技術角度來看，有沒有任何相鄰或互補的技術——你們想要自行內部開發，或透過併購（M&A）來取得？

Yes, that's a good question. So we're actively thinking about that all the time. I mean, as we work through this group. It's -- this group that's been carved out, it stood up and it's where in the incubation phase moving into growth. It's a mix of vertical integration as well as inorganic targeted acquisitions to make sure that we can control the technology. So there are areas that are in our current battery thermal management system today that we are looking towards both of those avenues. So yes, those are both active.

是的，這是個好問題。我們一直都在積極思考這件事。我的意思是，當我們推進這個團隊時——這個被獨立劃出的團隊已經建立起來，目前處於孵化階段並正邁向成長。策略上是垂直整合與外部（inorganic）的目標式併購並行，以確保我們能掌控技術。因此，在我們目前的電池熱管理系統（battery thermal management system）中，有一些領域我們正同時朝這兩條路徑評估。所以是的，兩者都在積極進行中。

And then adjacencies, we're also looking at the electronics cooling package. We do that as well and how we can continue to complement our battery thermal management system with our electronic cooling package. As you know, these a lot of the products and a lot of our OEs that require a BTMS have a lot of electronics. They're very complicated and sophisticated pieces of equipment. And with that, those electronics need to be cooled as well. So we're working to make sure as we work with our OEs and our customers to how they can understand how Modine solves the thermal management equation for them, not only for the battery, but for the electronics onboard as well.

另外在相鄰領域方面，我們也在看電子冷卻套件（electronics cooling package）。我們也有做這一塊，以及如何持續用電子冷卻套件來補強我們的電池熱管理系統。你也知道，許多需要 BTMS 的產品以及我們的許多原始設備製造商（OEs）都有大量電子元件；它們是非常複雜且精密的設備。而這些電子元件也需要冷卻。因此，我們正努力確保在與 OEs 與客戶合作時，他們能理解 Modine 如何為他們解決熱管理方程式，不僅是電池，還包括車載電子系統。

I am showing no further -- I do apologize, our next question comes from the line of Matt Summerville with D.A. Davidson.

我顯示沒有進一步——我很抱歉，我們的下一個問題來自 D.A. Davidson 的 Matt Summerville。

So I have a couple of follow-ups. Just so I make sure I understand this. In Performance Technologies, in dollars, how much unabsorbed inflation -- what was the unabsorbed inflation impact in Q1? And over what time -- I mean, because your input costs are coming down, that's going to flip. And I guess I'm wondering when that flips into the positive? Is that by your fiscal Q3?

我有幾個追問。為了確保我理解正確：在 Performance Technologies 方面，以金額計算，未被吸收的通膨——Q1 未被吸收的通膨影響是多少？以及在什麼時間——我的意思是，因為你們的投入成本正在下降，這會反轉。我想知道何時會轉為正面？是在你們的會計年度 Q3 嗎？

Yes. Matt, it's Mick. So total company this quarter, we were a little bit favorable on, call it, net economics, material inflation. Clearly, on the climate side, we overperformed there and we were net positive through pricing and other actions. We were pretty -- we were close to neutral, a little negative. I would put it, plus or minus $3 million range for PT negative, our Performance Technologies. And it is that combination of lag on pricing and we still had the high materials in our factories in Q1.

是的，Matt，我是 Mick。就本季全公司而言，在淨經濟效益（net economics）/材料通膨方面，我們略為有利。很明顯，在 Climate 端我們表現超出預期，透過定價與其他措施，我們淨額為正。在 PT（Performance Technologies）方面，我們大致接近中性、略為負面。我會把它放在正負 300 萬美元的區間，PT 這邊偏負。這是定價落後（lag on pricing）以及我們在 Q1 工廠端仍承受較高材料成本的組合結果。

We should -- when we talked last year, it's continued to decline in the Q2, Q3 time frame, it should start to flip. And just as you said, a combination of material pass-through agreements coming in while we're seeing some relief in raw material costs with obviously a big impact then in Q4.

我們應該——如同我們去年談到的，它在 Q2、Q3 的時間範圍內會持續下降，並應該開始轉正。正如你所說，這是材料轉嫁協議（material pass-through agreements）開始生效，同時我們也看到原物料成本有所緩解的組合，並且在 Q4 會有明顯的影響。

And how much of that goodness is in your current EBITDA guidance because algebraically, it's hard to come up with much of that goodness seen in your guidance today?

那麼，這些利多有多少已經反映在你們目前的 EBITDA 指引裡？因為從代數上看，很難在你們現在的指引中推導出有太多這些利多。

Yes. When we -- it's a fair question. When I talk about guidance and all the factors going in, I think a clear tailwind after Q1 from climate we've got a tailwind right now on materials. That is pushing us to that high end. Neil and I would like to get through Q2, reassess both supply/demand from the economics side from volume and then make sure we see stability in these metal prices before thinking about adjusting guidance. So I think short answer to your question is we've built a good portion of this into our comments today. A little early, even recently, there's been a little spike up in some metals. I think there's an opportunity set for us. We'd like to get through Q2 and then further reassess.

是的。這是個合理的問題。當我談到指引以及所有納入的因素時，我認為在 Q1 之後，Climate 端有明確的順風；我們目前在材料方面也有順風。這正推動我們朝向區間高端。Neil 和我希望先走完 Q2，再重新評估：一方面從經濟面看供需與出貨量；另一方面也要確認這些金屬價格的穩定性，然後再考慮是否調整指引。所以對你問題的簡短回答是：我們已把其中相當一部分反映在今天的評論中。現在還有點早，而且最近某些金屬甚至有小幅反彈。我認為我們仍有機會空間。我們希望先走完 Q2，再進一步重新評估。

That makes sense. And then just on Slide 11, in climate, you have heat transferred down 5% to 10% for the year after being up 19% in Q1. Is that related to a tough -- a really tough back half comp? Or what's driving that?

這很合理。然後關於第 11 張投影片，在 Climate 方面，你們預期全年熱交換（heat transfer）下滑 5% 到 10%，但 Q1 卻成長 19%。這是因為下半年比較基期很硬嗎？還是什麼因素在驅動？

Yes. So when we talk about that Q4 and Q1 outperformance, one of the things Neil and I and the team have been going through has been a heavy, heavy, heavy focus around 80/20 and the heat transfer products. And we've tried to take a conservative approach, Matt, that we will lose some business. And one of the things that surprised this Q1, and you saw that volume increase. So we're trying to take a conservative approach and assume we will have some business that we will lose through 80/20. I would say, clearly in back the guidance, we'll reassess halfway through the year. It's also an opportunity set if those customers and programs remain sticky.

是的。所以當我們談到 Q4 和 Q1 的超預期表現時，Neil、我以及團隊一直在推進的一件事，是對 80/20 與熱交換產品的高度、高度、高度聚焦。我們採取較保守的做法，Matt，假設我們會流失一些業務。而在這個 Q1 讓人意外的一點是，你也看到出貨量增加。所以我們試圖保守假設：透過 80/20，我們會流失一些業務。我會說，很明顯在指引背後，我們會在年中重新評估。如果那些客戶與專案仍具黏著性（remain sticky），這也會是一個機會空間。

I am showing no further questions at this time. I would like to turn the conference back to Kathy Powers.

我顯示目前沒有進一步的問題。我想把電話會議交回給 Kathy Powers。

Thank you, and thanks to everyone for joining us on the call today. Now you'll be able to access the replay of this call through the website in a couple of hours. We hope you all have a great day. Thanks.

謝謝，也感謝各位今天加入我們的電話會議。再過幾個小時，您就可以透過網站收聽本次會議的重播。祝大家有美好的一天。謝謝。

This concludes today's conference. You may now disconnect.

今天的電話會議到此結束。您現在可以掛線。