Motorcar Parts of America Inc (MPAA) 2023 Q3 法說會逐字稿

Good day. My name is Rob, and I will be your conference operator today. At this time, I'd like to welcome everyone to the Motorcar Parts of America Fiscal 2023 Third Quarter Results Conference Call. (Operator Instructions) Thank you. Gary Maier, Vice President of Corporate Communications and Investor Relations, you may begin your conference.

再會。我叫 Rob，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加美國汽車零部件公司 2023 財年第三季度業績電話會議。 （操作員說明）謝謝。企業傳播和投資者關係副總裁 Gary Maier，您可以開始會議了。

Thank you. Thank you, Rob, and thanks, everyone, for joining us. Before I turn the call over to Selwyn Joffe, Chairman, President and Chief Executive Officer; and David Lee, the company's Chief Financial Officer, I'd like to remind everyone of the safe harbor statement included in today's press release.

謝謝。謝謝 Rob，也謝謝大家加入我們。在我將電話轉交給董事長、總裁兼首席執行官 Selwyn Joffe 之前；和公司首席財務官 David Lee，我想提醒大家注意今天新聞稿中包含的安全港聲明。

Private Securities Litigation Reform Act of 1995 provides a safe harbor for certain forward-looking statements, including statements made during today's conference call. Such forward-looking statements are based on the company's current expectations and beliefs concerning future developments and their potential effects on the company. There can be no assurance that future developments affecting the company will be those anticipated by Motorcar Parts of America. Actual results may differ from those projected in the forward-looking statements. These forward-looking statements involve significant risks and uncertainties, some of which are beyond the control of the company and are subject to change based upon various factors.

1995 年私人證券訴訟改革法案為某些前瞻性陳述提供了安全港，包括在今天的電話會議上發表的陳述。此類前瞻性陳述基於公司當前對未來發展及其對公司的潛在影響的預期和信念。無法保證影響公司的未來發展將符合美國汽車零部件公司的預期。實際結果可能與前瞻性陳述中預測的結果不同。這些前瞻性陳述涉及重大風險和不確定性，其中一些超出了公司的控制範圍，可能會根據各種因素發生變化。

In particular, expectations about anticipated future growth and opportunities with customers may not be achieved. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For a more detailed discussion of some of the ongoing risks and uncertainties of the company's business, I refer you to the company's various filings with the Securities and Exchange Commission.

特別是，可能無法實現對預期未來增長和客戶機會的預期。公司不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因。有關公司業務的一些持續風險和不確定性的更詳細討論，請參閱公司向美國證券交易委員會提交的各種文件。

With that said, I would like to begin the call and turn the call over to Selwyn.

話雖如此，我想開始通話並將通話轉給 Selwyn。

Thank you, Gary. I appreciate everyone joining us today. Let me begin by addressing factors that impacted our results, and then I will address our expectations for the near future.

謝謝你，加里。我感謝今天加入我們的每一個人。讓我先談談影響我們結果的因素，然後我將談談我們對不久的將來的期望。

Before I begin, despite our softer-than-normal sales for the quarter, let me assure you that there were no customer or shelf space losses. There were 2 major items impacting our sales for the quarter. First, a certain customer reduced orders by approximately $14 million compared with the same period a year ago. In addition, we were impacted by delays in new business from certain other customers, representing approximately $17 million of deferrals for the quarter. As a result, our sales targets for the quarter and 9-month period were affected. We are now experiencing a resumption of ordering levels in the current fiscal fourth quarter, with orders expected to gain further momentum throughout our next fiscal year.

在開始之前，儘管我們本季度的銷售額低於正常水平，但我向您保證，沒有客戶或貨架空間損失。有 2 個主要項目影響了我們本季度的銷售額。一是某客戶訂單同比減少約1400萬美元。此外，我們還受到某些其他客戶新業務延遲的影響，這意味著本季度約有 1700 萬美元的延期。因此，我們本季度和 9 個月的銷售目標受到影響。我們現在正在經歷當前財政第四季度的訂單水平恢復，預計在我們的下一財政年度訂單將進一步增長。

As a result of the lower sales volumes, we temporarily reduced production, which impacted overhead absorption, which in turn impacted gross margins. As sales and production volume increases, we expect to incrementally benefit from increased overhead absorption.

由於銷量下降，我們暫時減少了產量，這影響了管理費用的吸收，進而影響了毛利率。隨著銷量和產量的增加，我們預計將從增加的管理費用吸收中逐漸受益。

I should emphasize that in the normal course of business, customer returns remain relatively constant. As such, when sales decrease, returns as a percentage of sales increase. Returns as a percentage of sales were higher for the quarter, which in turn further impacted gross margins. Gross margins were also impacted by inflationary costs not yet covered by price increases. We expect to realize the full benefit of our price increases in the current fiscal fourth quarter, with further upside from expected order volume improvement, operating efficiencies and cost reduction initiatives that we continue to implement across the entire organization.

我要強調的是，在正常的業務過程中，客戶回報率保持相對穩定。因此，當銷售額下降時，退貨佔銷售額的百分比就會增加。本季度退貨佔銷售額的百分比較高，這反過來又進一步影響了毛利率。毛利率還受到價格上漲尚未覆蓋的通貨膨脹成本的影響。我們預計將在當前第四財季實現價格上漲的全部好處，並進一步受益於我們繼續在整個組織中實施的預期訂單量改善、運營效率和成本削減計劃。

These initiatives, including an ongoing company-wide strategic analysis of opportunities to realign our resources and cost structure to enhance profitability and cash flow. Clearly, our results were not acceptable and not what we expected when we hosted our fiscal second quarter call, primarily due to specific customer-related ordering activities and some macroeconomic headwinds, as I just noticed. We experienced some supply chain challenges, primarily due to shortages for certain components, which impacted production of some products. Fortunately, sales that were impacted by supply chain issues last quarter are improving. This will also help mitigate the impact on gross margins going forward.

這些舉措包括在全公司範圍內持續進行的機會戰略分析，以重新調整我們的資源和成本結構，以提高盈利能力和現金流。顯然，我們的結果是不可接受的，也不是我們在主持第二財季電話會議時的預期，這主要是由於與客戶相關的特定訂購活動和一些宏觀經濟逆風，正如我剛剛注意到的那樣。我們經歷了一些供應鏈挑戰，主要是由於某些組件的短缺影響了某些產品的生產。幸運的是，上個季度受供應鏈問題影響的銷售額正在改善。這也將有助於減輕對未來毛利率的影響。

Higher interest rates continued to have a significant impact on profitability, primarily due to rates related to long-established customer supply chain finance programs. David will discuss these items shortly. As you know, we are a major supplier of critical nondiscretionary automotive aftermarket parts. We are working with our customers to address the sharply high interest rate environment, which impacts both MPAA and our customers as well as companies doing business with the leading automotive retailers. It's an industry challenge that requires practical solutions and further action.

較高的利率繼續對盈利能力產生重大影響，這主要是由於與長期建立的客戶供應鏈融資計劃相關的利率。大衛將很快討論這些項目。如您所知，我們是關鍵的非自由裁量汽車售後市場零件的主要供應商。我們正在與我們的客戶合作，以應對利率急劇上升的環境，這既影響了 MPAA 和我們的客戶，也影響了與領先汽車零售商開展業務的公司。這是一個行業挑戰，需要切實可行的解決方案和進一步的行動。

Now let me address our future outlook. We expect sales to increase by $52 million annually, just from a resumption of expected normalized order volume from 2 key customers, starting in the current quarter. In addition, we expect to add incremental sales of approximately $15 million from additional committed new business. We also expect to more than double our business for brake pads and rotors in the next fiscal year. Equally important, our gross margins will be enhanced by approximately $20 million of incremental price increases that start this quarter. In addition, as we ramp up for an all-time record fourth quarter, we expect to see margin accretion from efficiencies related to the higher volume and cost-cutting initiatives.

現在讓我談談我們的未來展望。我們預計銷售額每年將增加 5200 萬美元，這僅僅是從本季度開始恢復來自 2 個主要客戶的預期標準化訂單量。此外，我們預計將從額外承諾的新業務中增加約 1500 萬美元的增量銷售額。我們還預計在下一財年我們的剎車片和轉子業務將增加一倍以上。同樣重要的是，從本季度開始，我們的毛利率將增加約 2000 萬美元的增量價格上漲。此外，隨著我們在第四季度創下歷史新高，我們預計利潤率會因與提高產量和削減成本舉措相關的效率而增加。

As noted in our press release today, we have revised our annual guidance to reflect the actual third quarter results and our optimism for the current fourth quarter. While we don't provide quarterly guidance, given our quarterly guidance, given our revised update, one can easily calculate it. We expect record sales for the fiscal fourth quarter between $183.6 million and $191.6 million and record profitability of adjusted EBITDA between $27.5 million and $32.5 million.

正如我們在今天的新聞稿中指出的那樣，我們已經修改了我們的年度指引，以反映實際的第三季度業績和我們對當前第四季度的樂觀態度。雖然我們不提供季度指導，但根據我們的季度指導，根據我們修訂後的更新，可以很容易地計算出來。我們預計第四財季的銷售額將在 1.836 億美元至 1.916 億美元之間，調整後 EBITDA 的盈利能力將在 2750 萬美元至 3250 萬美元之間。

With respect to cash flow, our expectation is to continue to make progress to generate cash. We are committed to maintaining strong organic growth while focused on enhancing our gross margins and cash flow. In short, as a result of all these initiatives, we believe the company is well positioned for sustainable top and bottom line growth for parts and solutions, and our partnerships with our customers will be mutually enhanced.

關於現金流，我們的預期是繼續取得進展以產生現金。我們致力於保持強勁的有機增長，同時專注於提高我們的毛利率和現金流。簡而言之，由於所有這些舉措，我們相信公司在零件和解決方案的可持續收入和利潤增長方面處於有利地位，我們與客戶的合作夥伴關係將相互加強。

Now let me expand a bit further and discuss the other drivers to support our ability to achieve our longer-term financial targets. Our brake-related product lines are growing with expected operating efficiency improvements as volume increases with further fixed cost absorption opportunities. We believe our brake-related business will exceed $300 million in annual sales, above our fiscal '22 reported results, within the next 4 to 5 years. We are continuing to expand sales in Mexico with multiple product lines as our customers experience increased demand for aftermarket parts, which currently includes rotating electrical, wheel hubs, brake boosters and brake master cylinders.

現在讓我進一步展開並討論支持我們實現長期財務目標的能力的其他驅動因素。我們的製動相關產品線正在增長，隨著產量的增加以及進一步的固定成本吸收機會，運營效率有望提高。我們相信，在未來 4 到 5 年內，我們與製動相關的業務的年銷售額將超過 3 億美元，高於我們 22 財年報告的業績。隨著我們的客戶對售後市場零件的需求增加，我們將繼續通過多個產品線擴大在墨西哥的銷售，這些零件目前包括旋轉電氣、輪轂、制動助力器和製動總泵。

All major automotive retailers are continuing the rollout of our electric benchtop -- rotating electric benchtop tester, and we expect sales from this opportunity to reach a cumulative $80 million in the next 4 to 5 years. We also expect additional revenue for maintenance and add-on services.

所有主要的汽車零售商都在繼續推出我們的電動台式測試儀——旋轉式電動台式測試儀，我們預計未來 4 到 5 年內，通過這次機會的銷售額將達到累計 8000 萬美元。我們還希望通過維護和附加服務獲得額外收入。

Our Electric Vehicle contract testing center in Detroit, Michigan continues to attract customers, including a leading agricultural and construction equipment provider and leading EV automotive manufacturers, to support the design and development of electric vehicles. This contract testing is an initial entry into Software as a Solution.

我們位於密歇根州底特律的電動汽車合同測試中心繼續吸引客戶，包括領先的農業和建築設備供應商以及領先的電動汽車製造商，以支持電動汽車的設計和開發。此合同測試是軟件即解決方案的初始入口。

In short, we are well positioned to address both the internal combustion engine market and the emerging electric vehicle market with product functionality and applications across both markets. We expect continued strong demand for ICE, internal combustion engine applications for decades, notwithstanding electric vehicle growth, which still represents a small percentage of the overall car part.

簡而言之，我們有能力同時滿足內燃機市場和新興電動汽車市場的需求，並在這兩個市場上提供產品功能和應用。我們預計幾十年來內燃機應用對 ICE 的需求將持續強勁，儘管電動汽車在增長，但仍佔整個汽車零部件的一小部分。

In summary, we have a broad line of nondiscretionary aftermarket parts necessary to service the car population of approximately 285 million vehicles on the road, representing an uptick based on recently issued industry data. We remain excited about our opportunities, notwithstanding the headwinds we experienced for the quarter. I can assure you, we are working diligently every day with our customers and suppliers to meet the demand for our products as well as addressing the inflationary pressures we are all facing that I touched on earlier in my remarks.

總而言之，我們擁有廣泛的非自由裁量售後市場零部件產品線，可以為道路上約 2.85 億輛汽車提供服務，根據最近發布的行業數據，這一數字有所上升。儘管我們在本季度遇到了不利因素，但我們仍然對我們的機會感到興奮。我可以向你保證，我們每天都在與我們的客戶和供應商一起努力工作，以滿足對我們產品的需求，並解決我在前面的發言中提到的我們都面臨的通脹壓力。

I will now turn the call over to David to review our results in greater detail.

我現在將電話轉給大衛，讓他更詳細地審查我們的結果。

Thank you, Selwyn, and good morning, everyone. I encourage everyone to read the earnings press release issued this morning as well as the 10-Q that will be filed later today. Let me now provide a review of our fiscal third quarter and 9 months financial results.

謝謝你，Selwyn，大家早上好。我鼓勵大家閱讀今天上午發布的收益新聞稿以及將於今天晚些時候提交的 10-Q。現在讓我回顧一下我們第三財季和 9 個月的財務業績。

Net sales for the fiscal '23 third quarter were $151.8 million compared with $161.8 million in the prior year. Fiscal third quarter results were sharply impacted by a certain customer reducing orders by approximately $14 million compared with the prior year and delays with other customers for new business of approximately $17 million. Orders have resumed in the current fiscal '23 fourth quarter, and we're expected to continue through fiscal '24, as Selwyn mentioned earlier. Gross profit for the fiscal '23 third quarter was $21 million compared with $32.6 million a year earlier. Gross profit for the quarter was impacted by noncash items as well as cash items. Let me provide details for each, and then I will provide further details on the impact on each additional line item so you can further understand underlying fundamentals between periods and the opportunities to enhance profitability.

23 財年第三季度的淨銷售額為 1.518 億美元，而去年同期為 1.618 億美元。第三財季業績受到與去年同期相比減少約 1,400 萬美元訂單以及與其他客戶延遲約 1,700 萬美元新業務的嚴重影響。訂單在當前的 23 財年第四季度已經恢復，我們預計將持續到 24 財年，正如 Selwyn 之前提到的那樣。 23 財年第三季度的毛利潤為 2100 萬美元，而去年同期為 3260 萬美元。本季度的毛利潤受到非現金項目和現金項目的影響。讓我提供每一項的詳細信息，然後我將提供更多關於對每個附加項目的影響的詳細信息，以便您可以進一步了解不同時期之間的基本面和提高盈利能力的機會。

The noncash items reflect core and finished group premium amortization and revaluation of cores on customer shelves, which are unique to certain of our products as required by GAAP. The total for these noncash items in the quarter was approximately $3.9 million. A more detailed explanation of core accounting is available on our website, and I would encourage anyone with questions about this topic to review the video.

非現金項目反映核心和成品集團保費攤銷和客戶貨架上核心的重估，這是 GAAP 要求的我們某些產品所獨有的。本季度這些非現金項目的總額約為 390 萬美元。我們的網站上提供了對核心會計的更詳細解釋，我鼓勵任何對此主題有疑問的人觀看視頻。

We also incurred transitory supply chain disruption costs of $2.4 million compared with $4.3 million a year ago, as referenced in Exhibit 3 of this morning's earnings press release. We are encouraged that these costs are decreasing.

我們還招致了 240 萬美元的暫時性供應鏈中斷成本，而一年前為 430 萬美元，如今天上午的收益新聞稿的圖表 3 所示。我們感到鼓舞的是，這些成本正在下降。

Third quarter gross profit as a percentage of net sales was 13.8% compared with 20.1% a year earlier. Gross margin was impacted by 2.6% on the previously mentioned noncash items as well as 1.6% from the previously mentioned cash items from transitory costs related to supply chain disruptions. While global supply chain challenges seem to be improving, we are still experiencing challenges and continue to assess COVID-19 and global geopolitical situations.

第三季度毛利潤占淨銷售額的百分比為 13.8%，而去年同期為 20.1%。上述非現金項目的毛利率受到 2.6% 的影響，上述現金項目因與供應鏈中斷相關的暫時性成本而受到 1.6% 的影響。雖然全球供應鏈的挑戰似乎正在改善，但我們仍面臨挑戰，並繼續評估 COVID-19 和全球地緣政治形勢。

In summary, in addition to the noncash and cash items explained previously, gross margin for the fiscal '23 third quarter compared with the prior year was impacted by inflationary costs not yet covered by price increases, temporary lower absorption of overhead costs due to lower production volume and changes in product mix. Gross margin improvement is expected to be enhanced as the full benefit of certain price increases is realized and with higher sales volumes in the current fourth quarter in fiscal 2024.

總之，除了之前解釋的非現金和現金項目外，23 財年第三季度的毛利率與上年相比受到價格上漲尚未涵蓋的通貨膨脹成本的影響，由於產量下降導致間接費用吸收暫時減少量和產品組合的變化。隨著某些價格上漲的全部好處得以實現，並且 2024 財年第四季度的銷量增加，預計毛利率將得到提高。

Operating expenses were down $6.4 million for the quarter to $17.5 million from $23.9 million in the prior year period. This included a noncash gain of $4.3 million for the foreign exchange impact of lease liabilities and forward contracts compared with a prior year noncash loss of $385,000. The remaining $1.7 million of operating expense decreases include cost-reduction initiatives.

本季度的運營費用從去年同期的 2390 萬美元下降 640 萬美元至 1750 萬美元。這包括因租賃負債和遠期合同的外匯影響而產生的 430 萬美元非現金收益，而上一年為 385,000 美元的非現金損失。剩餘的 170 萬美元運營費用減少包括成本削減計劃。

We reported net income of $1 million or $0.05 per diluted share, as detailed in this morning's press release. Results reflect the impact of noncash items totaling $484,000 or $0.02 per diluted share. Cash items that impacted results included transitory costs related to supply chain disruptions totaling $2.8 million or $0.14 per diluted share. In addition to the above noncash and cash items, as previously mentioned in the gross margin discussion, results for the quarter were impacted by inflationary costs not yet covered by price increases, temporary lower absorption of overhead costs due to lower production volume and changes in product mix. Results are expected to be enhanced as the full benefit of certain price increases is realized and with higher sales volumes in the current fourth quarter and in fiscal 2024.

我們報告的淨收入為 100 萬美元或每股攤薄收益 0.05 美元，詳見今天上午的新聞稿。結果反映了總計 484,000 美元或攤薄後每股 0.02 美元的非現金項目的影響。影響業績的現金項目包括與供應鏈中斷相關的暫時性成本，總計 280 萬美元或攤薄後每股 0.14 美元。除了上述非現金和現金項目外，如前所述，在毛利率討論中，本季度的業績還受到價格上漲尚未涵蓋的通貨膨脹成本、由於產量下降和產品變化導致間接費用吸收暫時減少的影響混合。隨著某些價格上漲的全部好處得以實現，並且當前第四季度和 2024 財年的銷量增加，預計業績將得到改善。

I should note that we have implemented cost-reduction initiatives throughout the company, including travel, outside services, labor costs and overall cost-saving opportunities, which are expected to enhance profitability. Additionally, results for the fiscal third quarter were also impacted by $7.5 million or $0.29 per diluted share of higher interest expenses, primarily due to higher market interest rates compared with the prior year.

我應該指出，我們已經在整個公司實施了成本削減計劃，包括差旅、外部服務、勞動力成本和整體成本節約機會，這有望提高盈利能力。此外，第三財季的業績也受到利息支出增加 750 萬美元或攤薄後每股 0.29 美元的影響，這主要是由於市場利率高於上一年。

Interest expense was $11.5 million compared with $3.9 million for last year. Of this increase in interest expense, approximately 98% resulted from higher market interest rates. I should further emphasize that the large interest expense incurred in the third quarter was primarily driven by a sharp rise in interest rates of 4.5% compared with the prior year for the accounts receivable discount program offered by our customers. This increase is more than triple the discount rate the company paid in interest expense in the prior year period. As a critical supplier of nondiscretionary automotive parts, we are committed to arriving at a satisfactory solution to this issue. Additionally, we are focused on improving cash flow to pay down borrowings.

利息支出為 1150 萬美元，而去年為 390 萬美元。在利息支出的增加中，約 98% 是由於市場利率上升所致。我需要進一步強調的是，第三季度發生的大筆利息支出主要是由於我們客戶提供的應收賬款貼現計劃的利率較上年同期大幅上漲 4.5%。這一增幅是公司去年同期支付的利息費用貼現率的三倍多。作為非自由裁量汽車零部件的重要供應商，我們致力於為這個問題找到令人滿意的解決方案。此外，我們專注於改善現金流以償還借款。

Additionally, income tax benefit was $9 million compared with $1.6 million income tax expense for the prior year period. The income tax provision reflects the expected benefit from tax losses. I should also mention that the effective tax rate for the 9 months was affected in part due to the inability to recognize the benefit of losses at specific foreign jurisdictions. However, we expect these losses will be utilized against future profits, which will benefit future tax rates.

此外，所得稅收益為 900 萬美元，而去年同期的所得稅費用為 160 萬美元。所得稅撥備反映稅項虧損的預期收益。我還應該提到，9 個月的實際稅率受到影響，部分原因是無法確認特定外國司法管轄區的損失收益。但是，我們預計這些損失將用於抵消未來的利潤，這將有利於未來的稅率。

Net income was $3.1 million or $0.16 per diluted share in the year-ago period. Results a year earlier were impacted by noncash items totaling $4.8 million or $0.25 per diluted share and cash items totaling $3.7 million or $0.19 per diluted share, primarily transitory costs related to supply chain disruptions.

去年同期淨收入為 310 萬美元或每股攤薄收益 0.16 美元。一年前的結果受到總計 480 萬美元或攤薄後每股 0.25 美元的非現金項目和總計 370 萬美元或攤薄後每股 0.19 美元的現金項目的影響，主要是與供應鏈中斷相關的暫時性成本。

EBITDA for the third quarter was $6.6 million. EBITDA was impacted by $646,000 of noncash items as well as $3.8 million in cash items, primarily due to the transitory costs related to supply chain disruptions. EBITDA before the impact of noncash and cash items mentioned above was $11 million for the third quarter. In addition to the above noncash and cash items, EBITDA for the quarter was further impacted by inflationary costs not yet covered by price increases, temporary lower absorption of overhead costs due to lower production volume and changes in product mix, as previously mentioned. In summary, EBITDA improvement in the current fourth quarter and fiscal 2024 are expected to be enhanced by the full benefit of certain price increases and with higher sales volume in addition to cost-reduction initiatives.

第三季度的 EBITDA 為 660 萬美元。 EBITDA 受到 646,000 美元的非現金項目和 380 萬美元的現金項目的影響，這主要是由於與供應鏈中斷相關的暫時性成本。第三季度，在上述非現金和現金項目影響之前的 EBITDA 為 1100 萬美元。除上述非現金和現金項目外，本季度的 EBITDA 還受到價格上漲尚未涵蓋的通貨膨脹成本的進一步影響，如前所述，由於產量下降和產品組合變化導致間接費用吸收暫時減少。總而言之，當前第四季度和 2024 財年的 EBITDA 改善預計將因某些價格上漲的全部好處和更高的銷量以及降低成本的舉措而得到加強。

EBITDA for the prior year third quarter was $11.9 million. EBITDA a year ago was impacted by $6.4 million of noncash items as well as $4.9 million of cash expenses, primarily transitory costs related to supply chain disruptions. EBITDA before the impact of noncash and cash items mentioned above were $23.2 million for the prior year third quarter.

去年第三季度的 EBITDA 為 1190 萬美元。一年前的 EBITDA 受到 640 萬美元的非現金項目和 490 萬美元的現金支出的影響，主要是與供應鏈中斷相關的暫時性成本。去年第三季度，在上述非現金和現金項目影響之前的 EBITDA 為 2320 萬美元。

Now let me discuss the 9 months results. Net sales for the fiscal '23 9-month period were $488.3 million, representing a 3.2% increase compared with $473.1 million in the prior year, which excludes $13.3 million in core revenue due to a realignment of inventory at customer distribution centers with sales benefits evolving as product mix changes. Gross profit for the fiscal '23 9-month period was $77.8 million compared with $92.1 million a year earlier. Gross profit as a percentage of net sales for the fiscal '23 9-month period was 15.9% compared with 18.9% a year earlier. Gross margins for the fiscal '23 9-month period was impacted by 2.4% of noncash items and 1.8%, primarily transitory supply chain disruptions as detailed in Exhibit 4 in this morning's earnings press release. In addition to the noncash and cash items just mentioned, gross margin for the fiscal '23 9-month period was impacted by various items discussed previously for the quarter. We expect gross margin improvement to be enhanced with the full benefit of certain price increases and with higher sales volumes, as I noted in my previous comments for the quarter.

現在讓我討論一下 9 個月的結果。 23 財年前 9 個月的淨銷售額為 4.883 億美元，與上年同期的 4.731 億美元相比增長 3.2%，其中不包括由於客戶配送中心庫存重新調整以及銷售收益不斷變化而產生的 1330 萬美元核心收入隨著產品組合的變化。 23 財年前 9 個月的毛利潤為 7780 萬美元，而去年同期為 9210 萬美元。 23 財年 9 個月期間的毛利潤占淨銷售額的百分比為 15.9%，而去年同期為 18.9%。 23 財年 9 個月期間的毛利率受到 2.4% 的非現金項目和 1.8% 的影響，主要是暫時的供應鏈中斷，詳見今天上午的收益新聞稿中的圖表 4。除了剛才提到的非現金和現金項目外，23 財年 9 個月期間的毛利率還受到之前討論過的本季度各種項目的影響。正如我在本季度之前的評論中指出的那樣，我們預計隨著某些價格上漲和銷量增加的全部好處，毛利率將得到提高。

Net loss for the fiscal '23 9-month period was $5.7 million or $0.29 per share compared with net income of $7.7 million or $0.39 per diluted share a year ago. Results were impacted by noncash items totaling $9.6 million or $0.50 per diluted share and cash items totaling $9.5 million or $0.49 per share, primarily transitory costs related to supply chain disruptions as detailed in Exhibit 2. In addition to the above items, results for the 9-month period were primarily impacted by various items discussed previously. Results are expected to be enhanced as a result of the various initiatives I discussed earlier concerning price increases and higher sales volume.

23 財年 9 個月期間的淨虧損為 570 萬美元或每股 0.29 美元，而一年前的淨收入為 770 萬美元或每股攤薄收益 0.39 美元。結果受到總計 960 萬美元或攤薄後每股 0.50 美元的非現金項目和總計 950 萬美元或每股 0.49 美元的現金項目的影響，主要是與供應鏈中斷相關的暫時性成本，詳見表 2。除上述項目外，9 家公司的業績-月期間主要受到前面討論的各種項目的影響。由於我之前討論過的有關價格上漲和更高銷量的各種舉措，預計結果會有所改善。

EBITDA for the fiscal '23 9-month period was $22 million. EBITDA was impacted by $12.9 million of noncash items as well as $12.6 million in cash items. EBITDA before the impact of noncash and cash items mentioned above was $47.5 million for the current period. In addition to the above items, EBITDA for the 9-month period was impacted by various items as referenced previously for the quarter.

23 財年 9 個月期間的 EBITDA 為 2200 萬美元。 EBITDA 受到 1290 萬美元非現金項目和 1260 萬美元現金項目的影響。本期扣除上述非現金和現金項目影響前的 EBITDA 為 4750 萬美元。除上述項目外，前 9 個月期間的 EBITDA 還受到該季度之前提到的各種項目的影響。

In summary, as I discussed, for the quarter, we expect EBITDA improvement as the full benefit of certain price increases and higher sales volume are realized along with cost reduction initiatives. EBITDA for the prior year fiscal '22 9-month period was $33.6 million. EBITDA was impacted by $19.9 million of noncash items as well as $14.2 million in cash items. EBITDA before the impact of noncash and cash items mentioned above was $67.7 million for the prior year period.

總而言之，正如我所討論的那樣，對於本季度，我們預計 EBITDA 會有所改善，因為某些價格上漲和更高銷量的全部好處將與成本削減舉措一起實現。上一年 22 財年的 9 個月期間的 EBITDA 為 3360 萬美元。 EBITDA 受到 1,990 萬美元非現金項目和 1,420 萬美元現金項目的影響。上年同期，扣除上述非現金和現金項目影響前的 EBITDA 為 6770 萬美元。

Now we will move on to cash flow and key corporate items. Net cash used in operating activities during the fiscal third quarter was $4.5 million versus $2.2 million cash provided by operating activities in the prior year period. This reflects working capital requirements, support year-to-date sales growth and expect record sales for the fiscal '23 fourth quarter. We expect to generate an increase in operating profit on a quarter-over-quarter basis for the fourth quarter supported by organic growth from customer demand, introduction of new product categories, price increases and operating efficiencies from our footprint expansion.

現在我們將繼續討論現金流和關鍵的公司項目。第三財季經營活動使用的現金淨額為 450 萬美元，而去年同期經營活動提供的現金為 220 萬美元。這反映了營運資金需求，支持年初至今的銷售增長，並預計 23 財年第四季度的銷售額將創紀錄。我們預計第四季度營業利潤將環比增長，這得益於客戶需求的有機增長、新產品類別的推出、價格上漲以及我們足跡擴張帶來的運營效率。

I should point out that due to record sales volume, we expect our accounts receivable balance to increase significantly in the fourth quarter, which will result in further enhancement to cash flow in the next -- in the new fiscal year. It should be noted that our days outstanding receivable is approximately 45 days.

我應該指出，由於創紀錄的銷量，我們預計第四季度我們的應收賬款餘額將大幅增加，這將導致下一財年的現金流進一步增強。應該注意的是，我們的未清應收賬款天數約為 45 天。

Our return on invested capital on a pretax basis at December 31, 2022, was 13.3% compared with 23.1% a year earlier. As our investments bear fruit, we expect to realize further benefit from the expansion of our Mexican operations and the launch of our new brake categories, with expectation of increased returns from both new and existing product lines. Our net debt at the end of the quarter was approximately $176.3 million while total cash and availability on the revolving credit facility was approximately $70 million.

截至 2022 年 12 月 31 日，我們的稅前投資資本回報率為 13.3%，而去年同期為 23.1%。隨著我們的投資取得成果，我們預計將從墨西哥業務的擴張和新制動器類別的推出中進一步獲益，並預計新產品線和現有產品線的回報都會增加。我們在本季度末的淨債務約為 1.763 億美元，而循環信貸額度的現金和可用性總額約為 7000 萬美元。

Lastly, we recently entered into a fifth amendment to our credit facility to modify the covenants to match the timing of implementing price increases to address inflationary costs and the tripling of interest rates. For further explanation on the reconciliation of items that impacted results and non-GAAP financial measures, please refer to Exhibits 1 to 5 in this morning's earnings press release.

最後，我們最近對我們的信貸安排進行了第五次修正，以修改契約以匹配實施價格上漲的時間，以解決通貨膨脹成本和利率增加三倍的問題。有關影響業績的項目和非 GAAP 財務指標的進一步解釋，請參閱今天上午的收益新聞稿中的圖表 1 至 5。

I would now like to open the line for questions.

我現在想打開問題熱線。

(Operator Instructions) Your first question from the line of Matt Koranda from ROTH MKM.

（操作員說明）來自 ROTH MKM 的 Matt Koranda 的第一個問題。

I guess I'll just start off with my traditional first question, which is, David, if you could provide the breakdown of revenue between rotating electrical wheel brake products and other.

我想我將從我傳統的第一個問題開始，即大衛，你是否可以提供旋轉電動車輪制動產品和其他產品之間的收入明細。

Yes, Matt, for the third quarter, rotating electrical was 66%, wheel hubs was 10%, brake-related products was 20% and others was 4%.

是的，馬特，第三季度，旋轉電機佔 66%，輪轂佔 10%，制動相關產品佔 20%，其他佔 4%。

Okay. Got it. Very helpful. And then just trying to understand the -- it sounds like you called out 2 different buckets of headwind in the quarter, one being delays in new business, the other being reduced orders from an existing customer. Is that all coming from 1 customer in particular? And is that all in rotating electrical? Maybe if you could just give a little color on why exactly that reduction, which looks pretty stark kind of on a year-over-year basis?

好的。知道了。很有幫助。然後只是試圖了解 - 聽起來你在本季度提出了兩個不同的逆風，一個是新業務的延遲，另一個是現有客戶的訂單減少。這是否全部來自 1 個客戶？這就是旋轉電氣嗎？也許如果你能給出一點顏色來說明為什麼會減少，這在同比基礎上看起來相當明顯？

Yes. So it comes on that. It comes from 2 -- a couple of customers predominantly. I mean, it's a mix between rotating electrical and brake calipers, brake rotors and brake pads, really, it's all of those 4. And really, the good news is that those orders have started coming back in, in this quarter. So we're seeing it now. And if the $35 million just gets to normalized reordering patterns, which we expect it will, I mean that should just give us an organic lift next year, not about new business, just about existing business performing to what our expectations.

是的。所以它來了。它來自 2 - 主要是幾個客戶。我的意思是，它是旋轉電動和製動卡鉗、制動轉子和製動襯塊的混合體，真的，這 4 種都有。好消息是，這些訂單在本季度開始恢復。所以我們現在看到了。如果 3500 萬美元只是按照我們的預期實現正常化的重新訂購模式，我的意思是明年應該會給我們帶來有機的提升，而不是新業務，而是現有業務的表現是否符合我們的預期。

And then the other piece is new business changeovers that have been committed to us, and we had a little bit of a slowdown in the extreme weather and some softening in the base, but that seems to be coming back as well. So that should give us, again, organic lift of that approximately $17 million. And then we've got additional business. We've got additional business that -- new business that will come on board next year that's already committed and quite frankly, some visibility of even more than that. So...

然後另一部分是已經承諾給我們的新業務轉換，我們在極端天氣中有所放緩，基地有所軟化，但這似乎也在回歸。因此，這應該再次給我們帶來大約 1700 萬美元的有機提升。然後我們還有其他業務。我們還有其他業務——明年將加入的新業務已經承諾，坦率地說，一些可見性甚至更多。所以...

I guess I'm just trying -- Selwyn, I'm just trying to understand it in the context of like you have a decent-sized customer that's reported results today. And inventory looks like it's up mid-teens for them. Comps are super healthy and yet, we're seeing a reduction overall in rotating electrical revenues. I'm just trying to square the 2 and understand sort of why rotating electricals should be down in that context.

我想我只是在嘗試——Selwyn，我只是想在你有一個體面的客戶今天報告結果的背景下理解它。對他們來說，庫存看起來像是十幾歲。 Comps 非常健康，但是，我們看到旋轉電力收入整體減少。我只是想求 2 的平方並理解為什麼在這種情況下旋轉電氣設備應該關閉。

Again, relating to one particular customer, I mean, we can't talk about who it is or what it is or why it is. But no market share loss, but we expect that to come back, just really based on their initiatives really more than anything.

同樣，關於一個特定的客戶，我的意思是，我們不能談論它是誰、它是什麼或為什麼它是。但沒有市場份額損失，但我們預計會回來，只是真的基於他們的舉措真的比什麼都重要。

I get it. Okay. Sorry I can take the rest of that stuff offline. That's fine.

我得到它。好的。對不起，我可以把剩下的東西離線。沒關係。

Okay.

好的。

And then just on the -- okay, so the other thing I wanted to understand is the sequential guide, if I take the implied EBITDA guide at the midpoint for the fourth quarter, it's a big step up. We're looking at close to 900 basis points of improvement that you guys are guiding to. Maybe just if you could give us some confidence in the gross margin versus OpEx split in the fourth quarter, how to think about gross margin improvement on a sequential basis. And how much of that is coming from price versus volume. It would be super helpful just to understand a little bit more about what's embedded in your assumptions.

然後就在 - 好吧，所以我想了解的另一件事是順序指南，如果我在第四季度的中點採用隱含的 EBITDA 指南，這是一個很大的進步。我們正在研究你們指導的近 900 個基點的改進。也許只是如果你能讓我們對第四季度的毛利率與 OpEx 拆分有一些信心，那麼如何考慮連續提高毛利率。其中有多少來自價格與數量。多了解一下您的假設中包含的內容將非常有幫助。

This is David. So we can talk about the 3 items we called out during the prepared remarks. So the inflationary costs, that will be addressed by the price increases that are going in. The large price increases have already started at the beginning of this quarter. So that's going to address the inflationary cost. The lower overhead absorption costs that we talked about due to lower production of volume with now higher sales and growing production volumes, that should also address the lower over absorption. Now we did also have product mix. So product mix, we do expect growth in all of our categories. That should help the product mix a little bit. Another item that Selwyn mentioned was the returns. So returns are constant with the lower sales volume in the December quarter. Returns as a percentage of sales was higher. Now back to higher sales volumes, those returns as a percentage of sales will now turn back to normalized levels. Lastly, we do have one product line that, during the December quarter, was impacted by shortages of critical components. We're already seeing that those sales are back up. So with those higher volume product lines, that will also benefit the gross margins.

這是大衛。因此，我們可以談談我們在準備好的發言中提出的 3 個項目。因此，通貨膨脹成本將通過即將到來的價格上漲來解決。價格大幅上漲已經在本季度初開始。所以這將解決通貨膨脹成本。我們談到的較低的間接吸收成本是由於產量較低而現在銷量較高且產量不斷增長，這也應該解決較低的過度吸收問題。現在我們也有產品組合。所以產品組合，我們確實期望我們所有類別的增長。這應該有助於產品混合一點。 Selwyn 提到的另一個項目是退貨。因此，由於 12 月季度銷量較低，回報率保持不變。退貨佔銷售額的百分比更高。現在回到更高的銷量，這些退貨佔銷售額的百分比現在將回到正常水平。最後，我們確實有一條產品線在 12 月季度受到關鍵組件短缺的影響。我們已經看到這些銷售量有所回升。因此，對於那些產量更高的產品線，這也將有利於毛利率。

Okay. All right. And then just -- you mentioned price, David, maybe someone or David on this one. Can you talk about the rounds of price increase? I think last time, you mentioned there was one in October. It sounds like that really didn't benefit the third quarter at all really from a margin perspective. And so there was another round that you had mentioned in the last call that was supposed to take place in January. So I'm assuming you're referring to that as kind of the last round of price increases. And that's what we're counting on to sort of improved gross margins in the fourth quarter, along with volume and then some of the lower return rates that you mentioned there. But just -- am I understanding that correctly? And -- or is there more price that you're embedding beyond the January actions?

好的。好的。然後只是 - 你提到了價格，大衛，也許是這個人或大衛。能談談漲價的幾輪嗎？我想上次你提到 10 月份有一次。從利潤率的角度來看，這聽起來真的對第三季度沒有任何好處。因此，您在上次電話會議中提到的另一輪會議應該在 1 月份舉行。所以我假設你指的是最後一輪價格上漲。這就是我們指望在第四季度提高毛利率、銷量以及你在那裡提到的一些較低的回報率。但只是——我理解正確嗎？並且 - 或者除了 1 月份的行動之外，您是否要付出更多的代價？

No. So, so far, I mean, that is correct, Matt. Those are all committed price increases that have gone into effect. We continue to evaluate our business and market conditions, and we'll evaluate what we'll do on price as we go forward. But as of now, that's where we are. I mean that includes -- the sort of the annualized leftover is $20 million, $20 million on our existing revenue base, about $20 million of price increase. And some of it just started maybe a little more there. But around that, that's left to go into effect on an annual basis.

不，到目前為止，我的意思是，這是正確的，馬特。這些都是已經生效的承諾漲價。我們將繼續評估我們的業務和市場狀況，並且我們將評估我們將在未來的價格上做些什麼。但截至目前，這就是我們所在的位置。我的意思是，這包括——年化剩餘資金為 2000 萬美元，我們現有收入基礎上的 2000 萬美元，價格上漲約 2000 萬美元。其中一些剛剛開始，可能還有更多。但圍繞這一點，每年都會生效。

Okay. Got it. And then in the press release, I think you mentioned brake pad and rotor product line, net sales is expected to double in fiscal '24. That's not overall brake products revenue as a whole, is it?

好的。知道了。然後在新聞稿中，我想你提到了剎車片和轉子產品線，預計 24 財年的淨銷售額將翻一番。這不是整個制動產品的整體收入，是嗎？

No.

不。

I mean, we should be taking the run rate around this year and doubling that for next year, but maybe just give a little color on what that implies for overall brake products growth as we head into fiscal '24.

我的意思是，我們應該在今年左右採用運行率並將明年翻一番，但也許只是在我們進入 24 財年時就這對整體制動產品增長意味著什麼給出一點顏色。

Yes. Well, I think you're going to see overall brake products growth north of 30%, maybe even 40% for next fiscal year. We haven't really given guidance yet on that, but the pads and rotors is fast becoming a big part of that. We've also got other brake-related products in there that are all growing. So we're up to continue to be optimistic there. And margins are starting to unfold there, where we're just getting through some of that start-up margin headwinds and starting to get to a more normalized level, but they'll continue to improve as this volume continues to grow.

是的。好吧，我認為你會看到整個制動產品增長超過 30%，下個財政年度甚至可能增長 40%。我們還沒有真正給出指導，但剎車片和轉子正迅速成為其中的重要組成部分。我們還有其他與製動器相關的產品，它們都在增長。因此，我們將在那裡繼續保持樂觀。利潤率開始在那裡展開，我們剛剛度過了一些啟動利潤率的逆風，並開始達到更正常的水平，但隨著這一數量的持續增長，它們將繼續改善。

Okay. Helpful. I'll take the rest of my questions offline, guys. Thanks.

好的。有幫助。伙計們，我會把剩下的問題放到離線狀態。謝謝。

Thank you.

謝謝。

Your next question comes from the line of Brian Nagel from Oppenheimer.

您的下一個問題來自 Oppenheimer 的 Brian Nagel。

So my first question, just with respect to the sales disruption in the quarter, I think it's probably a follow-up, to some extent, to the prior question. But just to get to be clear, I mean were the -- are these sales -- in your view, are these sales just simply delayed? Or is there a component that is lost because of this? It sounds like 1 competitor, the adjustments they've made.

所以我的第一個問題，就本季度的銷售中斷而言，我認為這可能在某種程度上是對先前問題的跟進。但為了清楚起見，我的意思是 - 這些銷售 - 在您看來，這些銷售只是簡單地延遲了嗎？還是有一個組件因此丟失了？聽起來像是 1 個競爭對手，他們所做的調整。

I think they are lost. Having said that, that I think this customer will step up orders and to maintain its competitive position, well, I shouldn't say will, are, they are to maintain their competitive position in the marketplace. And so I think we'll see an elevation and a return with them as they increase their inventory levels. But I don't think those are recoverable. The changeover revenue, that $17 million, that's just a deferral.

我認為他們迷路了。話雖如此，我認為該客戶將增加訂單並保持其競爭地位，嗯，我不應該說他們將保持其在市場上的競爭地位。因此，我認為隨著他們增加庫存水平，我們會看到他們的提升和回報。但我不認為那些是可以恢復的。轉換收入，即 1700 萬美元，只是延期。

And then so -- and I followed you. I mean, I've watched your company for a while now. I don't remember something like this happening in the past. So I guess the question is, does this happen? Is this unprecedented? In an event like this, could it be a leading indicator of something else?

然後 - 然後我跟著你。我是說，我關注你們公司有一段時間了。我不記得過去發生過這樣的事情。所以我想問題是，這會發生嗎？這是史無前例的嗎？在這樣的事件中，它會成為其他事情的領先指標嗎？

It's unprecedented. We have not seen it at the size before. I think it's an indicator of strategy. And again, we can't talk about any of our customers and their strategies. But I think it's an indication of a short-term strategy that's being reversed.

這是前所未有的。我們以前從未見過它的大小。我認為這是一個戰略指標。再一次，我們不能談論我們的任何客戶和他們的策略。但我認為這表明短期戰略正在逆轉。

Got it. And shifting gears a bit, just on the supply chain. Looks like here -- I think, David, I think you were making comments here, but just with regard to the ongoing disruptions. So I guess my question is, we've seen broadly speaking, supply chain challenges for your company, for your sector, even more broadly abate, but there's still some out there. Are we still thinking that most of the supply chain issues are more or less transitory in nature? Are we getting now to the point where maybe some of these disruptions will just simply persist or have now become structural?

知道了。只是在供應鏈上稍微換檔。看起來像這裡——我想，大衛，我想你在這裡發表評論，但只是關於持續的中斷。所以我想我的問題是，從廣義上講，我們已經看到貴公司、貴行業的供應鏈挑戰在更廣泛的範圍內有所緩解，但仍然存在一些挑戰。我們是否仍然認為大多數供應鏈問題或多或少是暫時的？我們現在是否已經到了這樣的地步，其中一些中斷可能只是簡單地持續存在，或者現在已經成為結構性的？

No. I think they're transitory. We're seeing it getting better and better. As this COVID and factories become more predictable and are able to stay open on a more predictable basis, which we had a massive outbreak of COVID in China and some delays prior to Chinese New Year and coming out of Chinese New Year, but it looks like -- and I'm, by no means, an expert, but it looks like the COVID, while the outbreaks may be luminous, the severity of it seems to be passed. And it seems like -- and again, it's not over yet, but it certainly seems like for us that, as it passes over the predictability of our factory and supply chain, we'll get much better. And we're seeing that already. I mean I'm cautiously optimistic. I do feel like we have to continue to watch what happens in China or in particular, both with COVID, which I think, again, we're able to see it now. And I think it -- hopefully, we're getting through that. And then hopefully, there are no -- I'm not sure what the other political ramifications will be as we go down the road, just the whole geopolitical situation in the world now is a little crazy. But I think it's stabilizing. Freight seems to have stabilized, and that's a transcontinental freight that seems to have stabilized. We still have a lot of headwind in local freight. And -- but hopefully, capacity in the roads will catch up and that part of the freight equation will get better. But for now, that's sort of a headwind and then predictability on semiconductor chips and some of these Chinese factories are still -- there's still some headwinds there.

不，我認為它們是暫時的。我們看到它變得越來越好。隨著這種 COVID 和工廠變得更可預測並且能夠在更可預測的基礎上保持開放，我們在中國爆發了大規模的 COVID 並且在農曆新年之前和農曆新年之後出現了一些延誤，但看起來-- 我絕不是專家，但它看起來像 COVID，雖然爆發可能很明顯，但它的嚴重性似乎已經過去了。似乎——再一次，它還沒有結束，但對我們來說肯定是這樣的，因為它超越了我們工廠和供應鏈的可預測性，我們會變得更好。我們已經看到了。我的意思是我持謹慎樂觀的態度。我確實覺得我們必須繼續關注在中國發生的事情，尤其是 COVID，我認為，我們現在能夠再次看到它。我認為——希望我們能渡過難關。然後希望沒有——我不確定在我們前進的過程中會產生什麼其他政治後果，只是現在世界上的整個地緣政治局勢有點瘋狂。但我認為它正在穩定。運費似乎已經穩定，而且是跨大陸運費似乎已經穩定。我們在本地貨運方面仍然面臨很多不利因素。並且 - 但希望道路的容量能夠趕上並且貨運方程式的這一部分會變得更好。但就目前而言，這是一種逆風，然後是半導體芯片的可預測性，其中一些中國工廠仍然存在——那裡仍然存在一些逆風。

(Operator Instructions) Your next question comes from the line of Bill Dezellem from Titan Capital Markets.

（操作員說明）您的下一個問題來自 Titan Capital Markets 的 Bill Dezellem。

Relative to the $17 million of new business that was delayed, did we hear you correctly that, that is now coming back or ramping up here this quarter that has already begun?

相對於被推遲的 1700 萬美元的新業務，我們是否正確地聽到了您的意見，即本季度已經開始的業務正在恢復或增加？

Yes, that has begun, and we're excited about it, yes, continues to ramp up.

是的，這已經開始了，我們對此感到興奮，是的，它會繼續增加。

And what category or categories is that in?

那屬於什麼類別？

Yes. It's a mix, Bill. I mean, predominantly brake-related and electric vehicle, I mean, in general.

是的。這是一個混合體，比爾。我的意思是，主要是與製動相關的電動汽車，我的意思是，一般來說。

Okay. And then next, relative to the delayed orders kind of the $14 million, given that you have price increases that were taking place at the beginning of the fourth quarter, what would cause a customer to delay the shipments? It seems as though they're just instituting a price increase on themselves by doing that.

好的。接下來，相對於 1400 萬美元的延遲訂單，考慮到第四季度初價格上漲，什麼會導致客戶延遲發貨？似乎他們只是通過這樣做來提高自己的價格。

That's a good point. No question about that. And again, very -- we just can't talk about what our customers are doing, unfortunately or fortunately. I mean, it's just -- it's something that's up to them. This is just so extreme that we felt was appropriate to call out. So I mean, I prefer not to go down that road, but the comments that I can make are, yes, that orders that are coming in now will be at a higher price. And yes, the orders have resumed coming in. And we feel like they have a strong strategy going forward and that we should benefit from it. And we'll be keeping a close eye on it as it progresses.

那是個很好的觀點。毫無疑問。再次，非常 - 我們不能談論我們的客戶在做什麼，不幸或幸運。我的意思是，這只是——這取決於他們。這太極端了，我們覺得應該大聲疾呼。所以我的意思是，我不想走那條路，但我可以發表的評論是，是的，現在收到的訂單價格會更高。是的，訂單已經恢復。我們覺得他們有一個強有力的未來戰略，我們應該從中受益。隨著它的進展，我們將密切關注它。

So counter to what one would normally expect to see, which is orders in advance of a price increase, they just ignored that. And it sounds like you did not give them a special deal where they were able to have the old price but a later shipment?

因此，與人們通常期望看到的相反，即提價前的訂單，他們只是忽略了這一點。聽起來你們沒有給他們特別優惠，他們可以用原來的價格但可以稍後發貨？

That is correct.

那是對的。

And by the way, thank you for not giving them a special deal. Also, where are you all at from a back to work in the office, hybrid versus work from home? Where are you at in that whole scheme of things?

順便說一句，謝謝你沒有給他們特別優惠。另外，你們都在辦公室工作，混合工作還是在家工作？你在整個計劃中處於什麼位置？

That's -- that differs by department. A number of people are back in the office on a full-time basis. Some of the people, more of the analytics and data-driven people are on 2 days a week mandatory, but many of them come into the office. And so we have flexed schedules by department.

那是 - 因部門而異。許多人全職回到辦公室。有些人，更多的是分析和數據驅動的人，每週工作 2 天是強制性的，但他們中的許多人都是來辦公室的。因此，我們按部門調整了時間表。

And are you at all feeling like it may be time to have people in the office more frequently given these external challenges that are coming at you and that may be more quickly and readily addressed if there's more person-to-person contact?

考慮到您面臨的這些外部挑戰，您是否覺得現在可能是時候讓人們更頻繁地在辦公室工作了，如果有更多的人與人之間的接觸，這些挑戰可能會更快、更容易地得到解決？

Yes. I don't -- I think that the meetings are extremely effective remote and hybrid as people in and out the office. But I will say, just as COVID settles and as we get through the winter months, I mean, we'd be evaluating a full-time return to the office in the spring and summer.

是的。我不——我認為會議是非常有效的遠程和混合會議，因為人們進出辦公室。但我會說，就像 COVID 安定下來以及我們度過冬季一樣，我的意思是，我們將評估在春季和夏季全職返回辦公室。

And if I may ask one more relative to the vendor finance programs. What progress has been made at finding a solution there?

如果我可以再問一個與供應商融資計劃相關的問題。在尋找解決方案方面取得了哪些進展？

Yes, I can't discuss that unfortunately at this point.

是的，不幸的是，我現在不能討論這個問題。

And there are no further questions at this time. I'd turn the call back over to Selwyn for some final closing comments.

目前沒有其他問題。我會把電話轉回 Selwyn，徵求一些最後的結束意見。

Thank you very much. I appreciate everybody's questions. And I appreciate the interest. I will say that sort of to summarize where we are, that notwithstanding the headwinds that I discussed this morning, we are excited about our future. We have built a solid foundation for both top line and bottom line growth for our existing product lines. And it is supported by strong demand for replacement parts and an aging car part.

非常感謝。我感謝大家的提問。我很感激你的興趣。我會這樣說來總結我們所處的位置，儘管我今天早上討論了不利因素，但我們對我們的未來感到興奮。我們為現有產品線的收入和利潤增長奠定了堅實的基礎。它受到對更換零件和老化汽車零件的強勁需求的支持。

In closing, we have great team members, and I appreciate their dedication to the company and our customers. We appreciate your continued support and we thank you again for joining us for the call. We look forward to speaking with you when we host our fiscal 2023 fourth quarter and year-end conference call in June and at investor conferences in the future. Thank you.

最後，我們擁有優秀的團隊成員，我感謝他們對公司和客戶的奉獻精神。感謝您一直以來的支持，我們再次感謝您加入我們的電話會議。我們期待在 6 月舉辦 2023 財年第四季度和年終電話會議時以及未來的投資者會議上與您交談。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。