Modine Manufacturing Company (MOD) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Modine Manufacturing Company's Third Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

各位女士、先生，早安，歡迎參加 Modine Manufacturing Company 2023 會計年度第三季財報電話會議。（接線員指示）提醒各位，本次電話會議將被錄音。

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

現在我想把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。請開始。

Good morning, and thank you for joining our conference call to discuss Modine's third 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 will 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.

各位早安，感謝各位參加本次電話會議，與我們一同討論 Modine 2023 會計年度第三季業績。我與會的還有：我們的總裁暨執行長 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存取，或至我們網站 modine.com 的投資人關係專區下載已張貼的 PDF 檔。

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.

投影片第 3 頁為我們關於前瞻性陳述的聲明。本次電話會議將包含前瞻性陳述，內容如同我們的財報新聞稿以及公司向美國證券交易委員會（SEC）提交之文件所述。

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

接下來，我很高興把電話交給 Neil。

Thank you, Kathy, and good morning, everyone. I'm pleased to announce another strong quarter with sales up 12% and adjusted EBITDA up 36% from the prior year. Mick will go through our financial results in more detail. But before that, I would like to provide an update on our transformation, focusing specifically on our 80/20 activities as we make progress towards our strategic goals.

謝謝你，Kathy，各位早安。我很高興宣布我們再度交出強勁的一季：銷售額較去年同期成長 12%，調整後 EBITDA 較去年同期成長 36%。Mick 會更詳細說明我們的財務結果。不過在那之前，我想先就我們的轉型進度提供更新，特別聚焦在我們的 80/20 活動，因為我們正朝策略目標持續推進。

It was actually on this call 2 years ago, my first with a company that we began outlining our vision for the new Modine and the role that 80/20 would play. The initial steps were to simplify and segment the organization and align the teams around specific strategies for each market vertical. Once those steps were complete, our leaders began creating a high-performance culture driven by prioritizing and focusing our resources on our best returning opportunities. All of these activities were done in preparation for driving focused and sustainable growth.

其實就在兩年前的這通電話會議——也是我加入公司後的第一通——我們開始勾勒「新 Modine」的願景，以及 80/20 將扮演的角色。最初的步驟是簡化並區隔組織，並讓團隊圍繞各市場垂直領域的特定策略對齊。完成這些步驟後，我們的領導團隊開始打造高績效文化，透過設定優先順序並將資源聚焦在報酬最佳的機會上來驅動。所有這些活動，都是為了推動更聚焦且可持續的成長所做的準備。

As I mentioned last quarter, the Climate Solutions segment was the first to launch 80/20 and is well along in its journey. The best example of this is in data centers, which was the initial pilot for our 80/20 initiatives. Fast forward to where we are today, and we couldn't be happier with our progress. We stood up the data center organization and immediately began expanding our manufacturing capability to bring our existing products to new markets. Our new chiller plant in Virginia is now up and running, and we have shipped our first products off the production line early last quarter. This is an important step for us as it allows us to be a full system supplier of data center products in North America with local production capabilities.

如同我上季提到的，Climate Solutions（氣候解決方案）事業群是第一個導入 80/20 的部門，目前已在旅程中走得相當前面。最好的例子就是資料中心業務，這也是我們 80/20 計畫最初的試點。快轉到今天，我們對進展感到非常滿意。我們成立了資料中心組織，並立即開始擴充製造能力，將既有產品帶入新市場。我們位於維吉尼亞州的新冷水機（chiller）工廠現已投產，並在上一季初就已從產線出貨首批產品。這對我們而言是重要的一步，因為它讓我們能在北美以在地生產能力，成為資料中心產品的完整系統供應商。

In addition, throughout the Climate Solutions segment, we are sharpening our commercial acumen by identifying and developing relationships with our top sales prospects and by providing our best customers with exceptional service in order to strengthen existing relationships and drive brand loyalty. We are strengthening our distribution model and simplifying our product offerings through SKU reduction for better focus. All this is leading to improvements across our business.

此外，在整個 Climate Solutions 事業群中，我們正透過辨識並發展與最重要銷售潛在客戶的關係，以及為我們最優質的客戶提供卓越服務，來強化商業敏銳度，以鞏固既有關係並提升品牌忠誠度。我們也在強化通路模式，並透過減少 SKU 來簡化產品組合，以便更聚焦。這些作為正帶動我們業務各面向的改善。

Our segment adjusted EBITDA margin this quarter of 14.2% is more than 300 basis points better than last year, and its run rate is tracking well towards the 2-year target range set at our Investor Day this past June. Our Heat Transfer Products Group was a large contributor to this improvement. This team has simplified their business by reducing SKUs and fine-tuning their pricing model. Given the level of improvement in this business, they are now focusing on growth in key markets, particularly within the European heat pump market where we will be increasing manufacturing capability.

本季我們事業群調整後 EBITDA 利潤率為 14.2%，較去年提升超過 300 個基點，其運行水準（run rate）也正朝我們在去年 6 月投資人日所設定的兩年目標區間穩健前進。Heat Transfer Products Group（熱傳產品事業群）對此改善貢獻良多。該團隊透過減少 SKU 與微調定價模型來簡化業務。鑑於此業務改善幅度顯著，他們目前正聚焦於關鍵市場的成長，尤其是歐洲熱泵市場，我們將在該市場提升製造能力。

The rapid adoption of heat pump technology in Europe is providing a clear tailwind for this business. This glimpse in areas of the business where 80/20 is furthest along, demonstrates the effectiveness of our initiatives and the impact they're having. It is also a positive indicator for areas of the business that are in early innings of the 80/20 process. While I'm very pleased with the traction and the rate of improvement within our Climate Solutions segment, we are far from done. We will continue to drive 80/20 throughout the organization beyond the commercial team through the supply chain and to the factory floor in order to improve our efficiency and further simplify our business.

歐洲熱泵技術的快速採用，為此業務帶來明確的順風。從 80/20 推進最深入的業務領域所呈現的成果，可看出我們各項措施的有效性及其帶來的影響；同時也對仍處於 80/20 初期階段的業務領域提供正向指標。雖然我對 Climate Solutions 事業群的動能與改善速度感到非常滿意，但我們離完成仍有一段路要走。我們將持續在整個組織推動 80/20，不僅限於商務團隊，也會延伸至供應鏈與工廠現場，以提升效率並進一步簡化業務。

We are creating focus factories with incremental capability and capacity created by eliminating low-margin product lines. In addition, we are also returning to new product development, filling our gaps or improving technologies were warranted.

我們正在打造聚焦型工廠（focus factories），透過淘汰低毛利產品線來釋出並增加能力與產能。此外，我們也重新投入新產品開發，在有需要之處補足缺口或提升技術。

Please turn to Slide 5. In our Performance Technologies segment, we formally launched 80/20 in the latter part of 2022, and we are well along the way in training the workforce. We have our leadership team in place and we are working through the segmentation process. Although most of our contracts in the Performance Technologies segment allow us to pass through metal prices, we have generally not been allowed to pass through increases in other costs, which have hurt our margins over the past several quarters.

請翻到投影片第 5 頁。在 Performance Technologies（性能技術）事業群，我們於 2022 年下半年正式啟動 80/20，目前在員工訓練方面已進展良好。我們已建立領導團隊，並正推進區隔（segmentation）流程。雖然 Performance Technologies 事業群的大多數合約允許我們轉嫁金屬價格，但一般而言我們無法轉嫁其他成本的上升，這在過去幾季壓縮了我們的利潤率。

We have started to make major gains in this area, however, and have reached agreements with several key customers. This has led to incremental improvements in EBITDA margins over the past 2 quarters. Our product groups in this segment have a clear understanding of their priorities. In our Advanced Solutions Group, which includes our EV systems business, we continue to build our order book with one additional production order during the quarter in the last mile delivery space, increasing our peak annual revenue estimate to nearly $140 million.

不過，我們已在此領域開始取得重大進展，並與數家關鍵客戶達成協議。這使得過去兩季 EBITDA 利潤率逐步改善。本事業群各產品團隊對其優先事項有清楚的理解。在 Advanced Solutions Group（先進解決方案事業群）——其中包含我們的電動車（EV）系統業務——我們在本季於「最後一哩」配送領域新增一筆量產訂單，持續擴充訂單簿，並將年度營收峰值估計提高至接近 1.4 億美元。

In our liquid cool business, we are moving in the right direction, identifying the strategic initiatives with a keen focus on improving the efficiency of operations and those plants that are not currently meeting our expectations. Our air cool business has the heaviest lift ahead and has a number of key initiatives underway. One major area of focus has been the genset market where we are building a strong book of business that will help us reach our financial targets.

在我們的液冷（liquid cool）業務方面，我們正朝正確方向前進，辨識策略性計畫，並高度聚焦於提升營運效率，以及改善目前未達我們期望的工廠表現。我們的風冷（air cool）業務仍有最艱鉅的工作要做，且已有多項關鍵計畫在推進中。其中一個主要聚焦領域是發電機組（genset）市場；我們正在建立強勁的業務訂單簿，以協助達成財務目標。

The key here is prioritization using 80/20 to capture the greatest opportunities. I have tremendous faith in this team. They have negotiated key commercial improvements. They are rationalizing product lines and reducing complexity. They are improving their cost structure by relentlessly focusing on supply chain optimization and they are introducing quoting filters to ensure that new programs meet our financial criteria.

關鍵在於運用 80/20 進行優先排序，以掌握最大的機會。我對這個團隊非常有信心。他們已談成關鍵的商務條件改善；正在精簡產品線並降低複雜度；透過持續聚焦供應鏈最佳化來改善成本結構；並導入報價篩選機制（quoting filters），以確保新專案符合我們的財務標準。

We are already seeing the improvements in their results and expect to see incremental benefits from our 80/20 actions in fiscal year '24. None of this is easy. In fact, it's quite difficult, but is a critical step in our transformation of our business and hitting our financial targets. I'm optimistic that we will finish our fiscal year on a strong note.

我們已經在他們的成果中看到改善，並預期在 2024 會計年度可從 80/20 行動中獲得更多增量效益。這些都不容易，事實上相當困難，但卻是我們轉型並達成財務目標的關鍵一步。我對我們將以強勁表現結束本會計年度感到樂觀。

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

現在我想把電話交給 Mick，他將回顧本季業績並提供各事業群的財務更新。

Thanks, Neil, and good morning, everyone. Please turn to Slide 6 to review the segment results. Climate Solutions had another exceptional quarter with higher sales volume and excellent earnings growth. Revenue was up 9% over the prior year and up 15% on a constant currency basis. Data center sales were up 68% or $16 million on strong demand from our North American customers.

謝謝你，Neil，各位早安。請翻到投影片第 6 頁以檢視各事業群表現。Climate Solutions 再度交出亮眼的一季，銷售量提升且獲利成長優異。營收較去年同期成長 9%，以固定匯率（constant currency）計則成長 15%。在北美客戶強勁需求帶動下，資料中心銷售成長 68%，增加 1,600 萬美元。

As Neil mentioned, we shipped our first chillers in the North American market this quarter. HVAC and our sales were up 3% or $2 million, driven by higher sales of indoor air quality products to the school market and increased sales of commercial refrigeration coolers. This was partially offset by some weakness in the heating market and 80/20 product rationalization.

如 Neil 所提到的，我們本季在北美市場出貨了首批冷水機（chillers）。HVAC 及我們的銷售額成長 3%，增加 200 萬美元，主要由於對學校市場的室內空氣品質產品銷售增加，以及商用冷凍冷卻器銷售提升所帶動。部分成長被供暖市場的疲弱以及 80/20 產品精簡所抵銷。

Sales of heat transfer products increased 2% or $3 million from the prior year. There was a modest growth across our global markets for coil products, but we're seeing some softening in demand from residential HVAC customers. Adjusted EBITDA increased 48%, including a 370 basis point margin improvement to 14.2%. Earnings and margin improvements were primarily driven by higher sales volume and benefits from our 80/20 initiatives.

熱傳產品銷售較去年同期增加 2%，成長 300 萬美元。我們的盤管（coil）產品在全球市場呈現溫和成長，但我們也看到住宅 HVAC 客戶需求有些轉弱。調整後 EBITDA 成長 48%，利潤率提升 370 個基點至 14.2%。獲利與利潤率改善主要由較高的銷售量以及我們 80/20 計畫帶來的效益所驅動。

The Climate Solutions segment is far along in its 80/20 journey, and we are clearly seeing the anticipated margin improvement. In Q4, we expect data center and HVAC in our markets to remain strong but anticipate ongoing weakness in the heating market and lower sales of heat transfer products.

Climate Solutions 事業群在 80/20 旅程中已走得相當前面，我們也清楚看到預期中的利潤率改善。第四季方面，我們預期資料中心與 HVAC 市場將維持強勁，但也預期供暖市場持續疲弱，以及熱傳產品銷售下滑。

Please turn to Slide 7. Performance Technologies also had a strong quarter with sales up 13% or $36 million. Revenue was up 19% on a constant currency basis, benefiting from volume growth in all product groups, along with improved commercial pricing. Advanced Solutions sales were up 17% or $5 million with continued growth in our electric vehicle product sales.

請翻到第 7 張投影片。Performance Technologies 本季同樣表現強勁，銷售額成長 13%，或增加 3,600 萬美元。以固定匯率計，營收成長 19%，受惠於所有產品群的出貨量成長，以及商業定價改善。Advanced Solutions 銷售額成長 17%，或增加 500 萬美元，且我們電動車產品銷售持續成長。

Liquid cooled product sales increased 10% or $11 million due to solid growth in North American and European commercial vehicle sales, partially offset by softness in Asia tied to COVID-related shutdowns in China. Lastly, air cooled product sales increased 15% or $21 million, primarily due to strong demand in the off-highway and commercial vehicle markets. Adjusted EBITDA increased 48%, resulting in an 8.1% margin and a 200 basis point improvement.

液冷產品銷售額成長 10%，或增加 1,100 萬美元，主要來自北美與歐洲商用車銷售的穩健成長，但部分被亞洲市場疲弱所抵銷，該疲弱與中國因 COVID 相關封控停工有關。最後，氣冷產品銷售額成長 15%，或增加 2,100 萬美元，主要由非公路（off-highway）與商用車市場的強勁需求所帶動。調整後 EBITDA 成長 48%，使利潤率達 8.1%，並改善 200 個基點。

As anticipated, we experienced a small positive net impact of material costs this quarter. Aluminum and copper have been trending lower. However, stainless steel prices have been increasing to partially offset that favorability. SG&A was higher than the prior year, but declined 30 basis points as a percentage of sales. As Neil discussed, the Performance Technologies segment is still in the early stages of its 80/20 journey, but progressing very well. Adjusting our commercial agreements to better recover cost is key to margin improvement, and the team's progress is evident in our results this quarter. We continue to see strength in most of our end markets and expect further gains in both revenue and earnings in our fourth quarter.

如預期所示，本季材料成本對我們的淨影響小幅正向。鋁與銅價格呈下降趨勢；然而，不鏽鋼價格上升，部分抵銷了上述有利因素。SG&A 高於去年，但占銷售額比重下降 30 個基點。如 Neil 所述，Performance Technologies 事業部仍處於 80/20 旅程的早期階段，但進展非常順利。調整我們的商業協議以更好地回收成本，是提升利潤率的關鍵，而團隊的進展已在本季結果中清楚展現。我們持續看到多數終端市場的強勁表現，並預期第四季在營收與獲利方面將進一步提升。

Now let's review the total company results. Please turn to Slide 8. Third quarter sales were up 12% or $58 million, driven by gains in both Performance Technologies and Climate Solutions. Revenue was up 18%, excluding a negative FX impact of $30 million. In the quarter, the main revenue driver was higher volume of approximately $74 million, resulting in a volume growth rate of 15%. Gross margin improved 250 basis points due to the higher volume and pricing, partially offset by the net impact of other inflationary cost increases.

現在我們來檢視公司整體表現。請翻到第 8 張投影片。第三季銷售額成長 12%，或增加 5,800 萬美元，主要由 Performance Technologies 與 Climate Solutions 兩大事業的成長所帶動。排除 3,000 萬美元的匯率負面影響後，營收成長 18%。本季營收的主要驅動因素為約 7,400 萬美元的出貨量增加，對應的出貨量成長率為 15%。毛利率提升 250 個基點，來自更高的出貨量與定價，部分被其他通膨性成本上升的淨影響所抵銷。

SG&A increased $8 million from the prior year, primarily due to higher employee compensation-related expenses, professional fees and certain variable costs. As a reminder, last year's operating income was higher due to a large reversal of previous asset impairment charges related to auto divestiture activities in prior years. I'm happy to report that adjusted EBITDA increased 36% or $14 million. This represents a 170 basis point improvement and the fourth consecutive quarter of year-over-year margin improvement. Adjusted earnings per share of $0.48 was $0.17 or 55% above the prior year.

SG&A 較去年增加 800 萬美元，主要因員工薪酬相關費用上升、專業服務費用增加，以及部分變動成本所致。提醒一下，去年營業利益較高，係因前幾年與汽車業務剝離活動相關的資產減損費用出現大額回轉。我很高興報告，調整後 EBITDA 成長 36%，或增加 1,400 萬美元。這代表利潤率改善 170 個基點，且已連續第四季年對年利潤率改善。調整後每股盈餘為 0.48 美元，較去年增加 0.17 美元，或成長 55%。

Now moving to cash flow metrics. Please turn to Slide 9. Free cash flow was relatively flat in the third quarter. Working capital remains somewhat elevated as we are working through global supply chain challenges. Year-to-date free cash flow is at $33 million. This includes the negative impact of $13 million of cash payments, primarily for restructuring activities, including the European headcount reductions announced last year.

接著看現金流指標。請翻到第 9 張投影片。第三季自由現金流大致持平。由於我們仍在因應全球供應鏈挑戰，營運資金水位仍偏高。年初至今自由現金流為 3,300 萬美元，其中包含 1,300 萬美元的現金支付負面影響，主要用於重整活動，包括去年宣布的歐洲人力縮減。

During the quarter, we repurchased 100,000 shares for a total of 300,000 shares on a year-to-date basis. Net debt of $308 million was slightly higher than the last quarter end, partially due to a negative FX impact. Our cash balance was $82 million with a leverage ratio of 1.6, which improved slightly from last quarter. As we look to Q4, we expect stronger free cash flow mostly due to reduced working capital.

本季我們回購 10 萬股，使年初至今累計回購達 30 萬股。淨負債為 3.08 億美元，較上季季末略高，部分原因為匯率的負面影響。我們的現金餘額為 8,200 萬美元，槓桿比率為 1.6，較上季略有改善。展望第四季，我們預期自由現金流將更強，主要來自營運資金下降。

Now let's turn to Slide 10 for our fiscal '23 outlook. We are confirming our outlook for fiscal '23 revenue growth at 6% to 12% despite the negative impact of foreign exchange has had this year. We have slightly reduced the sales outlook in HVAC&R and tighten the range for heat transfer products, mostly due to some weakness in heating products and coils that are sold into the residential market.

現在請翻到第 10 張投影片，看看我們 2023 會計年度（'23）的展望。儘管今年外匯帶來負面影響，我們仍確認 '23 會計年度營收成長 6% 至 12% 的展望。我們略微下調 HVAC&R 的銷售展望，並收窄熱交換產品的區間，主要因住宅市場相關的供暖產品與盤管（coils）出現一些疲弱。

In addition, we slightly lowered the high end of the ranges for sales of liquid and air cooled products. We are also holding our outlook for fiscal '23 adjusted EBITDA to be in the range of $190 million to $200 million, representing an increase of 20% to 26% versus the prior year. As we look to Q4, we'll have difficult comparables in Climate Solutions. In particular, the year ago period had extremely high sales and margins in heating and coil products.

此外，我們也略微下調液冷與氣冷產品銷售區間的上緣。我們同時維持 '23 會計年度調整後 EBITDA 展望在 1.90 億至 2.00 億美元區間，較去年增加 20% 至 26%。展望第四季，Climate Solutions 將面臨較高的比較基期；特別是去年同期供暖與盤管產品的銷售與利潤率都極高。

Given that we raised our guidance last quarter and the current economic uncertainty, we're taking a relatively conservative stance on the next quarter. That said, and based on our year-to-date results, we are clearly trending towards the high end of our guidance range.

鑑於我們上季已上調指引，以及目前經濟不確定性，我們對下一季採取相對保守的立場。即便如此，根據年初至今的表現，我們顯然正朝向指引區間的高端前進。

To wrap up, we're pleased with the third quarter results and our business leaders continue to execute on planned improvements. We remain on track with our transformation and progress towards our long-term margin targets presented in our Investor Day last June.

總結來說，我們對第三季的結果感到滿意，且各事業領導團隊持續落實既定的改善計畫。我們的轉型仍按計畫推進，並朝向去年六月投資人日所提出的長期利潤率目標持續前進。

With that, Neil and I will take your questions.

接下來，Neil 和我將回答各位的提問。

(Operator Instructions) Our first question comes from Matt Summerville with D.A. Davidson.

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

This is Will Jellison on for Matt Summerville today. I wanted to start out by asking you about the data center business as we head into your fiscal year 2024. And what your observations are with respect to both hyperscale and colocation markets in North America as well as Europe and whether or not you still feel comfortable with the level of growth that you've expected from these businesses up to now?

今天由 Will Jellison 代替 Matt Summerville 發問。我想先請教資料中心業務，當我們邁入你們 2024 會計年度時，你們對北美以及歐洲的超大規模（hyperscale）與共置（colocation）市場有何觀察？以及你們是否仍對迄今為止對這些業務所預期的成長幅度感到有把握？

Well, this is Neil. Thanks for the question. Yes, in short, I do feel comfortable with where we're at. I particularly feel comfortable because of the position that we have with our expansion of factories in not only in the U.K., but in Continental Europe as well as in North America. So we're seeing a lot of opportunity as we've expanded our product line. We've seen a lot of opportunity as we've taken very specific strategic customers that we want to grow with and over serving those customers. So in short, yes, I'm still confident with where we're at and where we're trending in the data center side.

我是 Neil。謝謝你的問題。是的，簡而言之，我對我們目前的狀況感到有把握。我特別有信心，因為我們在英國、歐洲大陸以及北美都擴建了工廠，具備良好的布局。因此，隨著我們擴充產品線，我們看到很多機會；同時，我們也鎖定一些非常明確、希望共同成長的策略性客戶，並加大對這些客戶的服務投入。總之，是的，我仍對我們在資料中心業務端的現況與趨勢充滿信心。

Great. And then on the Performance Technology side, it sounds like you had one incremental customer win within last-mile delivery, but I'm wondering if we could get a broader picture about the go-forward funnel of interested customers and any other notable wins you've had in the EV thermal management space.

了解。接著在 Performance Technology 方面，聽起來你們在最後一哩路配送（last-mile delivery）新增拿下一位客戶，但我想更全面了解未來有興趣客戶的管線（funnel）狀況，以及你們在電動車熱管理（EV thermal management）領域是否還有其他值得一提的得標（wins）。

Yes, that's a great question. Well, certainly an area of focus for us and where we see tremendous amount of opportunity for growth considering where we were 2 years ago. We're on -- our engagements have increased from 100 engagements in September to roughly 120 last month. We have gone from 18 wins to 19 wins. Our prototypes have increased from 56% to 58%. Our peak award last quarter when we made this announcement was $95 million. We're up to $140 million today.

是的，這是個很好的問題。這確實是我們的重點領域之一；考量到兩年前我們的基礎，我們在這裡看到非常巨大的成長機會。我們的互動案（engagements）已從 9 月的 100 件增加到上個月約 120 件；得標數從 18 件增加到 19 件；原型（prototype）占比從 56% 提升到 58%。上季我們宣布時的峰值授標金額（peak award）為 9,500 萬美元，而今天已提升到 1.40 億美元。

So we're continuing to solve critical applications in terms of battery thermal management for our customers. We've looked at specialty vehicles in a meaningful way, and we've also pivoted towards some wins on the last mile delivery van. So we've expanded our commercial base. And we've also expanded our product portfolio as well. We recently put out a press release with our L-CON, which is another version of battery thermal management system that's for harsh applications and tough environments that gets us into additional specialty vehicles. So the group continues to grow. We continue to invest. We're adding more resources, more capital, and we're pleased with where we're at with the [funnel] today.

因此，我們持續為客戶解決電池熱管理方面的關鍵應用。我們也以更具實質的方式切入特種車輛（specialty vehicles），並且也轉向在最後一哩路配送廂型車（last mile delivery van）上取得一些得標，因而擴大了我們的商業客戶基礎。同時我們也擴充了產品組合。我們最近發布新聞稿介紹 L-CON，這是另一種電池熱管理系統版本，適用於嚴苛應用與艱困環境，讓我們能切入更多特種車輛。團隊持續成長、持續投資；我們正在增加更多資源與資本投入，並對目前的［管線］狀況感到滿意。

Our next question comes from Stefanos Crist with CJS Securities.

下一個問題來自 CJS Securities 的 Stefanos Crist。

Neil, Mick. I just want to touch on the implied guidance for Q4 at the high end, it's applying about $53 million of EBITDA. Can you just remind us of the Q4 last year and is the year-over-year comparison and how to think about that? I know you touched on it on the call, but maybe just a little more detail there.

Neil、Mick，我想談一下第四季在指引高端所隱含的數字，看起來約為 5,300 萬美元的 EBITDA。你們能否提醒我們去年第四季的情況，以及年對年的比較該如何理解？我知道你們在電話會議中有提到，但希望能再多一些細節。

Yes. Stef, it's Mick. Let me give you a little bit more color because there's a lot of moving pieces. So as we already mentioned, we're holding guidance, but we're very confident in our ability to hit that top end of our range. With regards to PT or Performance Technologies, we expect that they'll have another good quarter with both sequential and year-over-year growth. So really good continued progress from Performance Technologies.

是的，Stef，我是 Mick。我再補充一些背景，因為其中有很多變動因素。如同我們已提到的，我們維持指引不變，但對達成區間上緣非常有信心。就 PT（Performance Technologies）而言，我們預期他們將再有一個表現良好的季度，無論是季對季或年對年都會成長。因此，Performance Technologies 將持續展現非常好的進展。

We're anticipating that Climate Solutions earnings will be up slightly from Q3, but they do have some pockets of difficult comps. And last year, we had a really strong heating season and heating results from both volume and pricing. We also had a record I talked about last year in the coil heat transfer products area in terms of volume, price and the 80/20 activities. So as we flip ahead to this year, we see a little bit of softness in -- for the coils or HTP area where products are going into residential applications, plus some of our OE customers are leaning out their inventory a little bit. And then this winter hasn't really cooperated from a heating season. So the general heating market is down a little bit from last year.

我們預期 Climate Solutions 的獲利會較 Q3 小幅成長，但確實有一些區塊面臨較艱難的比較基期。去年我們的供暖季非常強勁，供暖業績在出貨量與定價兩方面都表現亮眼。我去年也提到過，在盤管熱交換產品（coil heat transfer products）領域，我們在出貨量、價格以及 80/20 活動方面都創下紀錄。因此展望今年，我們看到盤管或 HTP 領域中、產品用於住宅應用的部分略有疲弱，另外我們的一些 OE 客戶也在稍微去化庫存。再者，今年冬天在供暖季方面並不配合。所以整體供暖市場較去年略為下滑。

And then last but not least, in Q4, we're planning on a little bit higher SG&A, mostly tied to incentive comp. And last year, their incentive compensation was very, very low. So as we look forward, we're really trying to take a cautious view. We think we have an opportunity to exceed our guidance that volumes hold in Q4. And then even looking out into the next fiscal year, Neil just covered our Climate Solutions order books are quite strong. We feel really good about the upcoming year. And we're still holding to our fiscal '24 targets we laid out on our Investor Day. So I hope all of that kind of helps address that. Let me know if you have more questions.

最後但同樣重要的是，在 Q4，我們規劃 SG&A 會略高一些，主要與獎酬性薪酬（incentive comp）相關。去年他們的獎酬性薪酬非常、非常低。因此往前看，我們確實試圖採取較為審慎的觀點。我們認為若 Q4 的出貨量能維持，我們有機會超越指引。甚至放眼下一個會計年度，Neil 剛剛也提到我們 Climate Solutions 的訂單簿相當強勁。我們對即將到來的一年感覺非常好。而且我們仍維持在投資人日所提出的 2024 會計年度目標不變。希望以上能協助回應你的問題。如有更多問題請告訴我。

No, that's great color. And I just want to move on to free cash flow. Can you just talk us just about working capital, in particular, inventory levels and how you view those closing out to '23 and then going into next year?

不，這些說明很有幫助。我想接著談自由現金流。你能否談談營運資金，特別是庫存水位，以及你如何看待 2023 年底的收尾與明年的走勢？

Yes. For most of the year, and probably like a lot of other companies you follow, we've had higher working capital. Most of that is primarily due, as you mentioned, inventory. It's taking us some time to lean that out and the supply base is slowly improving. Neil's talked on previous calls about some components that in the peak or 52-week lead times. So it will take us a little bit of time. I would say for sure, we've been carrying at least a $20 million to $30 million excess in inventory, and we're still up quite a bit over that from pre-COVID levels.

好的。今年大部分時間，可能也和你關注的許多其他公司一樣，我們的營運資金偏高。其中大多數主要如你所提到，是因為庫存。我們需要一些時間來精簡庫存，而供應鏈基礎也在緩慢改善。Neil 在先前的電話會議中談到，有些零組件在高峰期的交期達到 52 週。因此我們還需要一點時間。我可以很確定地說，我們至少多持有了 2,000 萬到 3,000 萬美元的超額庫存，而且相較於 COVID 之前的水準，我們仍高出不少。

So in Q4, we expect I mentioned to have positive cash flow, much improved, mostly driven by the working capital improvements. And as we go into next year, I think we're good from a working capital standpoint, a little too early to give you guidance on that side, but we would expect as revenue and earnings grow, we'll do our best here to continue to manage working capital down to where we were for quite a long time pre-COVID.

因此在 Q4，我們預期（如我先前提到）會有正向現金流，且會顯著改善，主要由營運資金改善所帶動。展望明年，我認為就營運資金而言我們狀況不錯；但現在要在這方面給你指引還稍早。不過我們預期，隨著營收與獲利成長，我們會盡最大努力持續把營運資金管理回到 COVID 之前、我們長期維持的水準。

Our next question comes from Brian Sponheimer with Gabelli & Company.

下一個問題來自 Gabelli & Company 的 Brian Sponheimer。

I guess I want to go back to just the outlook. It seems from your commentary and the numbers really bear it out, there's really positive momentum everywhere in the business. You and your team are doing a fantastic job. And pursuant to a question that was asked before fourth quarter guidance at the high end implies basically a similar quarter to the one that you just had. It just -- it seems to me that there's so much momentum, and I know you've spoken to being at the high end, does that basically take the low end of the guidance just completely out of the picture, [Mick].

我想回到展望這件事。從你們的評論以及數字來看，整個業務似乎到處都有非常正向的動能。你和你的團隊做得非常出色。延續先前有人問到的問題，第四季指引的高端基本上意味著會和你們剛剛交出的這一季差不多。只是——在我看來動能這麼強，而我知道你們也談到會落在高端，那是否基本上就把指引低端完全排除在外了，[Mick]？

Brian, yes, I mean, we feel very confident that based on where we are 9 months to date, as you point out and where we see the year that we're going to come in at the very high end of our guidance. And the opportunities to exceed it really if our EDI or order rates remain solid in Q4 on our vehicular customers. The data center business is going to have one of its strongest quarters of the year in Q4, and those can be a little bit lumpy as far as when actual shipments go out of those. But those would be a couple of the drivers that we would see that allow us to actually overdrive our forecast.

Brian，是的。我的意思是，我們非常有信心，基於我們年初至今 9 個月的表現（如你所指出）以及我們對全年走勢的觀察，我們將會落在指引的非常高端。至於超越指引的機會，主要取決於我們車用客戶的 EDI 或訂單速率在 Q4 是否仍維持穩健。資料中心業務在 Q4 將會是全年最強的季度之一，而這類業務在實際出貨時間點上可能會有些波動。但這些會是我們認為能讓我們實際超越預測的幾個驅動因素。

Yes. That makes sense to me. I want to just in regards to (inaudible) -- with regards to your balance sheet. I think the reaction today probably has some algo trading aspect to it given the headline EPS and the year-over-year comparison. The balance sheet is at 1.6x levered. You're going to take another $20 million now and eventually in working cap. And all you're really doing is really positive from a momentum perspective. Where down the line, would you start to consider something like a buyback where you can really be opportunistic on a day like today? Where would that start to enter your thinking, Neil?

是的，這對我來說合理。我想就（聽不清）——關於你們的資產負債表。我認為今天的市場反應，可能有一些演算法交易的因素，因為新聞標題的 EPS 以及年對年比較。資產負債表槓桿是 1.6 倍。你們現在會再釋放 2,000 萬美元，之後也會在營運資金上釋放。而你們做的事情從動能角度看都非常正面。未來在什麼情況下，你們會開始考慮像庫藏股回購這樣的事情，好在今天這種日子更具機會性地操作？Neil，這會在什麼時候進入你們的思考？

Yes. Brian, it's Mick. I'll go first and Neil wants to add anything. I think back to the previous question, where we've been on cash flow. We've been a little bit lumpy this year, primarily driven by working capital. Yes. As things stabilize here and we expect to see that working capital stabilized in Q4 and next year, we'd anticipate based on the targets we've set to have even better cash flow.

好的，Brian，我是 Mick。我先回答，之後看 Neil 是否要補充。我回到前一個關於現金流的問題。今年我們的現金流有些起伏，主要是由營運資金所驅動。是的，隨著狀況在此趨於穩定，而我們預期 Q4 與明年營運資金會穩定下來，依據我們設定的目標，我們預期將會有更好的現金流。

At that point, I think, Brian, when we've got the relatively stable quarter-to-quarter free cash flow. And as you pointed out, we wanted to really work our leverage ratio down this year, I think a full point. We're at a point then when we enter 24 here, 23, calendar '23 or fiscal '24 is the point where we can look at both acquisition opportunities but also in between there opportunistically look at buybacks when needed.

到那個時點，Brian，我認為當我們的季度間自由現金流相對穩定時——而且如你所指出，我們今年希望把槓桿比率再降下來，我想大約降一個百分點——那麼當我們進入 24 年時，23 年（曆年 2023 或 2024 會計年度）就是我們可以同時評估併購機會，並且在其間視情況機會性地進行回購的時間點。

Appreciate that. Just one more anecdote really quickly, if I could. In each , I had a pretty significant strike at one of their facilities in Racine. Were you able to do any hiring from workers that may have gotten tired of being on strike. And any opportunity there that you were able to take advantage of from a labor perspective?

感謝回覆。我再補充一個小插曲，若可以的話。In each（原文不清）在 Racine 的一個廠區發生了相當嚴重的罷工。你們是否能從那些可能厭倦罷工的工人中招募到人？在人力方面是否有任何你們能把握的機會？

Yes, that's a good question, Brian. This is Neil. Not that I'm aware of. We do very little manufacturing in Racine. It's primarily our R&D center for -- and testing and development. Most of our manufacturing footprint is in the United States was in Tennessee, Rhode Island. It's in Missouri. So it's in locations outside of the Wisconsin area, but that's a fair point.

是的，這是個好問題，Brian。我是 Neil。就我所知沒有。我們在 Racine 的製造很少；那裡主要是我們的研發中心——以及測試與開發。我們大部分的製造據點在美國，分別在田納西州、羅德島州，也在密蘇里州。因此都在威斯康辛州以外的地點，但你的觀點是合理的。

Understood. And best of luck.

了解。祝一切順利。

Our next question comes from Steve Ferazani with Sidoti & Company.

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

I do want to run through a couple of more specific questions on guidance. As I -- I'm trying to match up your previous presentation just to see the shifts on revenue. When I look at Climate Solutions, the only real change I see here is HTP, you're actually -- you raised the lower end. HVAC and Refrigeration down very modestly, but I'm in New York, and we haven't had winter. I mean we've skipped it. I know the ground hog said 6 more weeks. But how much of an impact is that when parts of the country are just skipping winter this year.

我確實想針對指引再問幾個更具體的問題。我——我在對照你們先前的簡報，想看看營收的變動。當我看 Climate Solutions 時，我看到唯一真正的變化是在 HTP，你們其實是——把低端上調了。HVAC 與 Refrigeration 小幅下調，但我人在紐約，我們根本沒有冬天。我是說我們直接跳過了。我知道土撥鼠說還有 6 週。但當全國部分地區今年直接跳過冬天時，這會造成多大的影響？

Yes. I think -- Neil, correct me if I'm wrong, our market data says pockets of the heating market is 20% or 30%, down. We're gaining share. We're nowhere near that. But the magnitude of what you're describing from really a lack of a cold snap or winter, it's really impacted heating, both commercial and then you see a little bit decline to where people have heaters on a residential application in new home starts.

是的。我想——Neil，如果我說錯請糾正，我們的市場數據顯示，供暖市場有些區塊下滑了 20% 或 30%。我們正在提升市占，並沒有接近那樣的跌幅。但你所描述的幅度——也就是缺乏真正的寒流或冬季——確實對供暖造成影響，包含商用端；另外你也會看到在住宅應用（新屋開工）中，人們裝設暖氣的需求略有下降。

Yes. And I'd also add, Steve, that we also believe that there's a distribution with a little overweight in terms of inventory, and we're going to start to see some of that work itself out. Certainly, colder temperatures would help that working out faster. But again, at the rate where we see the industry and where we're at, we know that we're gaining market share in the heating side of the business.

是的，我也補充一下，Steve，我們也認為通路端在庫存方面有些偏高，我們將開始看到這部分逐步消化。當然，更冷的氣溫會讓去化速度更快。但同樣地，以我們看到的產業狀況以及我們自身的位置來看，我們知道我們在供暖業務端正在提升市占。

Right. When I think about -- does that -- if we end up with a really warm winter, does that carry over into stronger next year? Or is it weather dependent? Because if you didn't replace stuff this year, although I guess new home starts will impact that as well, right?

對。當我在想——如果最後是一個非常溫暖的冬天，這會延續到明年變得更強嗎？還是它取決於天氣？因為如果今年沒有更換設備，雖然我想新屋開工也會影響，對吧？

As well as market capture as we continue to build out our distribution.

以及隨著我們持續擴展通路布局所帶來的市場滲透。

Yes, Steve, we've had years where it's that Neil said the channel. So the good and the bad of it will be is based on the winter if a lot of distributors stop restocking, they will sell remainder of the year, what they have on and we'll address that as we head into next heating season. But you're right, some years, you enter a winter with a really lean inventory channel, and that can help quite a bit regardless of actual weather.

是的，Steve，我們確實有些年度會像 Neil 提到的那樣，取決於通路端的狀況。它的好壞會取決於冬季：如果很多經銷商停止補貨，他們就會在當年剩餘時間把手上庫存賣完，而我們會在進入下一個供暖季時再來因應。不過你說得對，有些年度你進入冬季時通路庫存非常精簡，這不論實際天氣如何，都可能帶來相當大的幫助。

Got you. That's helpful. And then on HTP, where are you with the -- I believe it was Serbia, where you're building the pump facility?

了解，這很有幫助。那在 HTP 方面，你們在——我記得是在塞爾維亞、你們正在興建幫浦工廠那件事——目前進度到哪裡了？

Yes, that's correct. So we're still working through the final negotiations there with the landholder. We've recently started to work the process to secure equipment. And as you know, Steve, we currently do manufacture there in Serbia and 2 plants. This is a third additional plant to continue to build out the capacity to support the European heat pump market.

是的，沒錯。我們仍在與地主進行最後的談判。最近我們也開始推進採購設備的流程。如你所知，Steve，我們目前在塞爾維亞已經有 2 座工廠在生產；這將是第 3 座新增工廠，用來持續擴充產能，以支援歐洲熱泵市場。

So it'd be fair to say that, that number could have been different based on the timing that your demand is overwhelming supply still. Is that fair?

所以可以說，那個數字可能會因為時點不同而有所差異，因為你們的需求仍然遠大於供給。這樣說公平嗎？

So we're going to continue -- yes, we're continuing to win orders. Our order book is building quite healthy in regards to that very specific technology. Hence, the need for that additional factory we can I don't have in front of me exactly which quarter it is next year that we're back online, but we will have production in that third facility.

是的——我們會持續贏得訂單。我們在那項非常特定的技術上，訂單簿累積得相當健康。因此才需要那座額外的工廠。我手邊沒有明確資料指出明年是第幾季恢復到全面上線，但我們會在第三座廠開始投產。

Okay. And then just briefly touching on liquid cooled and air cooled. We know that automotive production is starting to pick up. China is starting to reopen. I was a little bit surprised that you've reduced right now on those. And we know from hearing from ag and construction and supply chain constraints, but [mark] the order books are still really strong in that area. So I'm just a little bit surprised on the modest reduction there.

好的。再簡單談一下液冷與氣冷。我們知道汽車產量開始回升，中國也開始重新開放。我有點意外你們現在對這兩塊做了下修。我們也從農業、工程建設以及供應鏈限制那邊聽到，[mark] 這個領域的訂單簿仍然很強。所以我對這個小幅下修有點驚訝。

Yes. Our commercial vehicle and off-highway order book is healthy. We're confident in terms of the EDI and the messaging that we're getting back. On the auto side of the business, it's been more unpredictable, hence, where we hedged a little bit there on the automotive side.

是的。我們的商用車與非公路（off-highway）訂單簿很健康。就 EDI 與我們收到的回饋訊息而言，我們很有信心。至於汽車業務端則比較難以預測，因此我們在汽車端做了一點保守調整（避險）。

But you haven't seen any major shift from where we were last quarter?

但你們沒有看到相較於上季有任何重大變化？

No.

沒有。

Okay. And just a quick question on that. So you're saying $140 million at peak production with EV. The last number I had written down was $90 million. Have you picked up that one order wasn't $50 million, was it? And then just in general, how you think that production ramp might work as component shortage disease.

好的。再快速問一下。所以你說電動車在產能高峰時是 1.4 億美元。我上次記下來的數字是 9,000 萬美元。你們是不是又拿到一筆訂單——那筆不是 5,000 萬美元吧？另外更一般性地，你怎麼看待在零組件短缺的情況下，產量爬坡會怎麼進行？

Yes. So that's incremental. If you combine all of the wins today, in addition to that other order that we won, we're seeing those forecast increase as well. So it's an aggregate of the trends that we see in that space. We're -- the team has done a really good job in terms of managing its inventory and managing our supply chain so that we can hit those targets. And so much so that they've launched this new product that we put a press release out for the Alcon BPMS, which actually has a different technology, and we're able to source the components where we need to source not only locally, but we also do some of our own manufacturing for those components.

是的。那是增量。如果把目前所有的得標案，再加上我們之前拿到的那筆訂單合在一起，我們也看到那些預測值在上調。所以這是我們在該領域看到的趨勢加總結果。我們——團隊在庫存管理與供應鏈管理方面做得非常好，讓我們能達成那些目標。甚至他們還推出了這個新產品，我們也為 Alcon BPMS 發了新聞稿；它採用不同的技術，而我們能在需要的地方取得零組件來源，不僅在地採購，我們也自行製造其中一些零組件。

(Operator Instructions) Our next question comes from Tim Moore with EF Hutton.

（接線員指示）下一個問題來自 EF Hutton 的 Tim Moore。

Congratulations on the impressive EPS growth in the quarter and the continued execution of the 80/20 strategy. My first question is related to the evolution to full systems offerings with aftermarket maintenance packages for data centers, eating into air quality and EVs. Do you have to ramp up hiring there and open any additional service locations near major customers?

恭喜本季 EPS 成長亮眼，且 80/20 策略持續落實。我的第一個問題與你們演進到提供完整系統方案有關，包含資料中心的售後維護套裝方案，並延伸到空氣品質與電動車。你們是否需要加速招募，並在主要客戶附近增設服務據點？

Yes, absolutely. And thanks for the question, Tim. This is Neil. Certainly, that's an area where we want to expand in North America. We have a very good service organization that supports our business in the U.K. as well as partnerships that we use in Continental Europe. That's an area where we're starting to put together plans on the service side to help support some of our largest customers, particularly in the Virginia, Northern Virginia area.

是的，絕對需要。謝謝你的問題，Tim。我是 Neil。這確實是我們希望在北美擴張的領域。我們在英國有非常好的服務組織來支援業務，在歐洲大陸也有合作夥伴。就服務端而言，我們正開始擬定計畫，以支援一些最大的客戶，特別是在維吉尼亞州、北維吉尼亞地區。

Great. That's helpful. And then maybe just more on the Virginia topic for your facility for the data centers, the precooling fillers for North America. When do you think you might be ramped up to generate $100 million in sales run rate? Will that take another 3 or 6 months? Or are you getting close to that?

很好，這很有幫助。再多問一點維吉尼亞的議題：你們在那邊的資料中心用設備（北美的預冷卻填料/填充介質）工廠，你們認為何時能爬坡到年化 1 億美元的銷售 run rate？還需要再 3 或 6 個月嗎？還是已經接近了？

So yes, we produced our first chillers off that production line last quarter. We're ramping up our capacity there. We've added some additional capacity at the same time. So we believe we have the ability to hit triple digits, and we put that out in the most recent press release that I believe was 2 years was, what, 150?

是的，我們在上一季已經從那條產線下線了第一批冷水機。我們正在提升那邊的產能，同時也新增了一些額外產能。所以我們相信有能力達到三位數（破億），而且我們在最近的新聞稿也提到——我記得是 2 年內到多少？150？

Yes. $100 million $100 million. For U.S. data center production, so that would include chillers plus the other products that we produce and that would be in fiscal '24.

是的，1 億美元，1 億美元。針對美國資料中心的生產，所以會包含冷水機以及我們生產的其他產品，這會在 2024 財年達成。

Does that help, Tim?

Tim，這樣有回答到你的問題嗎？

That does. No, it seems like you're on track for that. I just want to make sure that was going well. And just switching gears, you mentioned the Serbia, the third facility for heat pump production. How is your initial read for calendar 2023 for the demand for heat pumps from Europe and those incentives there? Are those still holding up? And do you think 2023 could be maybe as good as a year as 2022 was?

有的。看起來你們正朝那個方向前進，我只是想確認進展順利。再換個話題，你提到塞爾維亞第三座熱泵生產基地。你們對 2023 年（曆年）歐洲熱泵需求以及相關補貼的初步觀察如何？那些補貼還撐得住嗎？你覺得 2023 年可能會跟 2022 年一樣好嗎？

I do. We are seeing that demand, and we're picking up more customers. And that's the reason why it's driven the capital strategy that we have in Serbia to continue to advance and build out the capacity there. The incentives are there, the motivation is there with the traditional products that we sell into that space today, we've seen increase in sales and orders. And then as we continue to win new customers, large OEMs, to be honest, that are really helping us pull it through, the team has been very successful commercially in that space.

我認為會。我們確實看到需求，而且也在增加更多客戶。這也是為什麼我們在塞爾維亞的資本策略會持續推進並擴充那邊的產能。補貼在、動能在；就我們目前在該領域銷售的傳統產品而言，我們看到銷售與訂單都在增加。再者，隨著我們持續贏得新客戶——坦白說是一些大型 OEM——他們確實在幫我們把需求拉動起來；團隊在該領域的商務拓展非常成功。

Great. It seems like an enduring trend for the next few years. And then just my last question is around free cash flow. And I know Mick gone into this already, but just trying to wrap my head maybe around this March quarter of free cash flow, the positive free cash flow guide. I just want to make sure that the working capital reduction benefit, as you unwind some buffer inventories that should more than offset the restructuring and headcount cash costs. It sounds like you've already paid about $13 million in cash payments for the European headcount reduction. I was just wondering about the timing of maybe how much of a final payment you'd have to do in Europe.

很好。看起來這會是未來幾年的長期趨勢。最後一個問題是自由現金流。我知道 Mick 已經談過一些，但我想更理解一下 3 月那一季自由現金流轉正的指引。我想確認的是：當你們把一些緩衝庫存回收、帶來的營運資金下降效益，應該會足以抵銷重整與人力相關的現金成本。聽起來你們已經為歐洲的人力縮減支付了約 1,300 萬美元現金。我想問的是，歐洲那邊最後一筆付款大概會在什麼時點、金額大概多少？

Yes. We would expect probably a few million of cash restructuring costs in Q4. Nothing unlike we've seen for the full year, we'll probably be a little bit more than $15 million in cash restructuring. So yes, we'd expect a similar -- we talked a lot about the EBITDA in Q4. And then we expect the favorable working capital is the main driver of it.

是的。我們預期第四季大概還會有幾百萬美元的現金重整成本。整體來看，與全年水準差不多，我們全年現金重整成本可能會略高於 1,500 萬美元。所以是的，我們預期會是類似的——我們已經談了很多第四季的 EBITDA。然後我們預期有利的營運資金變動會是主要驅動因素。

Great. Neil and Mike, that's it for my questions.

很好。Neil 和 Mike，我的問題就到這裡。

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

目前顯示沒有其他提問。因此我現在把電話交回給 Kathy Powers。

Thank you, and thanks to everyone for joining us this morning. You'll be able to access the replay of this call through our website in about 2 hours. We hope that you all have a great day. Thanks.

謝謝，也感謝各位今天早上參與。我們大約在 2 小時後可透過公司網站收聽本次電話會議的重播。祝各位有美好的一天。謝謝。

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time.

今天的電話會議到此結束。感謝各位的參與。您現在可以掛斷電話。