Motorcar Parts of America Inc (MPAA) 2025 Q1 法說會逐字稿

Thank you for standing by. My name is Kayla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Motorcar Parts of America Inc., fiscal 2025 first-quarter conference call and webcast. (Operator Instructions)

謝謝你的支持。我叫凱拉，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Motorcar Parts of America Inc. 2025 財年第一季電話會議和網路廣播。（操作員說明）

I would now like to turn the call over to Gary Maier, Vice President of Corporate Communications and Investor Relations. You may begin.

我現在想將電話轉給企業傳播和投資者關係副總裁加里·邁爾 (Gary Maier)。你可以開始了。

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

謝謝凱拉，也謝謝大家加入我們的電話會議。在我將電話轉給董事長、總裁兼執行長 Selwyn Joffe 和公司財務長 David Lee 之前，我想提醒大家注意今天新聞稿中包含的安全港聲明。

The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for certain forward-looking statements made during today's call. These 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.

1995 年《私人證券訴訟改革法案》為今天電話會議中所做的某些前瞻性陳述提供了安全港。這些前瞻性陳述是基於公司目前對未來發展及其對公司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 Motorcar Parts of America 的預期。實際結果可能與前瞻性陳述中的預測有所不同。

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, in particular, expectations about anticipated future growth and opportunities with customers may not be achieved. The company undertakes no obligation to publicly revise or update 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 various filings with the Securities and Exchange Commission.

這些前瞻性陳述涉及重大風險和不確定性，其中一些風險和不確定性超出了公司的控制範圍，並且可能會根據各種因素發生變化，特別是對預期未來成長和與客戶的機會的預期可能無法實現。本公司不承擔公開修改或更新任何前瞻性陳述的義務，無論是由於新資訊、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，請參閱向美國證券交易委員會提交的各種文件。

I would now like to turn the call over to Selwyn to begin today's call.

我現在想將電話轉給塞爾溫，開始今天的電話會議。

Thank you, Gary. I appreciate everyone joining us today. We were encouraged by our record sales performance for the quarter and remain optimistic about the quarters ahead and achieving our full-year targets. For the quarter, our gross profit and gross margin metrics improved, which David will discuss in more detail, and we expect to realize further improvements through solid sales performance combined with ongoing strategic initiatives to further enhance operations.

謝謝你，加里。我感謝今天大家加入我們。我們對本季創紀錄的銷售業績感到鼓舞，並對未來幾季和實現全年目標保持樂觀。本季度，我們的毛利和毛利率指標有所改善，大衛將更詳細地討論這一點，我們預計透過穩健的銷售業績與持續的戰略舉措相結合，進一步增強運營，實現進一步的改善。

Unfortunately, our results for the fiscal first quarter were impacted by a sharply unfavorable non-cash mark-to-market foreign exchange loss from the lease liabilities and forward contracts due to a strong dollar versus the peso.

不幸的是，由於美元兌比索走強，租賃負債和遠期合約造成了嚴重不利的非現金以市價計價外匯損失，影響了我們第一財季的業績。

From an operational standpoint, results were impacted by onetime severance expenses related to strategic cost reductions. This initiative will generate expected annualized savings of approximately $7 million. Approximately 90% of these savings will reduce cost of goods sold and the remainder will reduce operating expenses. This action was part of a multiyear relocation process to reduce cost, utilizing our new low-cost global footprint and facilitate further operating efficiencies. We are actively exploring additional initiatives to further reduce cost of goods sold.

從營運角度來看，業績受到與策略成本削減相關的一次性遣散費的影響。該舉措預計每年可節省約 700 萬美元。其中約 90% 的節省將降低銷售成本，其餘的將減少營運費用。這項行動是多年搬遷過程的一部分，旨在降低成本，利用我們新的低成本全球足跡並進一步提高營運效率。我們正在積極探索其他舉措，以進一步降低銷售成本。

I should note our results for the quarter reflected some industry choppiness with the month of June regaining some momentum. This bodes well for the current fiscal second quarter, which historically is stronger than the first quarter. We are off to an excellent start for the second quarter with a strong July. We operate in a market where deferring repairs is not a viable option for too long, other than rotating electrical, which you can't defer at all. Hot weather will certainly hasten the failure of all parts that we offer.

我應該指出，我們本季的業績反映了該行業的一些波動，六月恢復了一些勢頭。這對目前的第二財季來說是個好兆頭，從歷史上看，第二季的表現強於第一季。我們的第二季有一個良好的開端，七月份表現強勁。在我們經營的市場中，推遲維修並不是一個可行的選擇太久，除了旋轉電氣，你根本不能推遲維修。炎熱的天氣肯定會加速我們提供的所有零件的故障。

Let me take a moment to highlight a few key near-term strategic initiatives that support our favorable outlook. As I noted during our year-end call, volume increases in our brake program will help absorb overhead, which in turn will result in accretion to overall margins. We expect accelerating brake-related product sales will lead to more opportunities to take advantage of efficiencies from both purchasing and production.

讓我花點時間強調一些支持我們良好前景的關鍵近期策略措施。正如我在年終電話會議中指出的那樣，煞車計畫的數量增加將有助於吸收管理費用，進而導致整體利潤增加。我們預期煞車相關產品銷售的加速將帶來更多利用採購和生產效率的機會。

As many of you know, we started our brake caliper business as a greenfield operation in August of 2019. And today, we are one of the leading suppliers in this category. As our newer brake product lines gain traction, we expect more efficient inventory turns to further support initiatives to neutralize working capital.

眾所周知，我們於 2019 年 8 月以新建業務的形式開始了煞車卡鉗業務。如今，我們是該類別的領先供應商之一。隨著我們更新的煞車產品線獲得牽引力，我們預期庫存週轉效率會更高，以進一步支持抵銷營運資金的措施。

Second, with respect to generating cash from working capital on a year-over-year basis, we are focused on inventory and accounts payable, which David will expand upon shortly. We have implemented processes to extend days outstanding on accounts payable and to enhance inventory efficiencies. These processes are still in their early stages, however, we are recognizing meaningful benefits, in particular with our supply chain finance program. We continue to evaluate allocation of capital to maximize shareholder value. The first-quarter working capital ratios were somewhat negative, though we are confident that working capital ratios will move in the right direction, as David will discuss further.

其次，關於逐年從營運資本中產生現金，我們專注於庫存和應付帳款，大衛很快就會對此進行擴展。我們實施了延長應付帳款未清天數並提高庫存效率的流程。這些流程仍處於早期階段，但是，我們正在認識到有意義的好處，特別是我們的供應鏈融資計劃。我們繼續評估資本配置，以實現股東價值最大化。第一季的營運資本比率有些為負，但我們相信營運資本比率將朝著正確的方向發展，正如大衛將進一步討論的。

Another positive ongoing initiative is the acceleration of our new part number introductions, targeting at least 800 per year, as supported by the introduction of more than 150 new part numbers last month, covering an additional 49 million vehicles on the road. This maintains our leadership position in the categories we supply, meets the consumer need and adds organic growth to our sales base. Not only are we growing organically, but we have secured meaningful new business commitments across all of our product lines.

正在進行的另一項積極舉措是加快推出新零件號，目標是每年至少推出 800 個新零件號，上個月推出了 150 多個新零件號，覆蓋了道路上另外 4,900 萬輛汽車。這保持了我們在供應類別中的領導地位，滿足了消費者的需求，並增加了我們銷售基礎的有機成長。我們不僅實現了有機成長，而且在所有產品線上都獲得了有意義的新業務承諾。

With respect to our diagnostic business, as I've previously mentioned, we expect to sell more than $100 million of diagnostic equipment within the next three years with further opportunities pending. We expect additional service revenue as more testers are deployed. We expect more opportunities outside North America as the business evolves.

至於我們的診斷業務，正如我之前提到的，我們預計在未來三年內銷售超過 1 億美元的診斷設備，並有更多機會等待。隨著更多測試人員的部署，我們預計會有額外的服務收入。隨著業務的發展，我們預計北美以外的機會會更多。

With regard to our heavy-duty business, we continue to leverage our reputation and industry position in this market, particularly with regard to supplying alternators and starters to our channel partners who are leaders in the heavy-duty aftermarket segment. Our growth opportunities continue to gain momentum across multiple platforms, such as agriculture, Class 8 trucks, refrigeration, construction, material handling, and transit/motor coaches. Dixie is also evolving as an important supplier to the heavy-duty original equipment manufacturers.

在我們的重型業務方面，我們繼續利用我們在該市場的聲譽和行業地位，特別是在向我們的通路合作夥伴提供交流發電機和起動機方面，他們是重型售後市場領域的領導者。我們的成長機會繼續在多個平台上獲得動力，例如農業、8 級卡車、冷凍、建築、物料搬運和運輸/大客車。Dixie 也正在發展成為重型原始設備製造商的重要供應商。

As the new fiscal year evolves, we remain focused on sales, profitability and neutralizing working capital. We are confident that our sales and profitability will grow organically and with our strong new business commitments, as I mentioned earlier. This, along with numerous efficiency initiatives, will enhance profitability and improve cash flow generation. From a strategic standpoint, we are continuing to leverage our strengths, including great products manufactured at state-of-the-art facilities, solid customer relationships, industry-leading SKU coverage, not to mention our value-added merchandising and marketing support. I should mention that we opened a new facility in 2024 in Malaysia to support manufacturing of wheel hubs for direct shipment to our customers, which is expected to enhance our competitive position.

隨著新財年的發展，我們仍然專注於銷售、獲利能力和中和營運資本。正如我之前提到的，我們相信，隨著我們強有力的新業務承諾，我們的銷售額和獲利能力將有機成長。這與眾多效率措施一起將提高獲利能力並改善現金流的產生。從策略角度來看，我們將繼續利用我們的優勢，包括在最先進的設施中生產的優質產品、穩固的客戶關係、行業領先的 SKU 覆蓋範圍，更不用說我們的增值銷售和行銷支援。我應該提到的是，我們於 2024 年在馬來西亞開設了一家新工廠，以支持輪轂的製造，並直接運送給我們的客戶，這有望增強我們的競爭地位。

Our Hard Part sales in Mexico continue to gain momentum as we experienced increased demand for our aftermarket parts. The rate of growth in this market is exciting, and we are well positioned to utilize our footprint to meet the growing demand. We are focused on increasing share in this region. We continue to benefit and grow sales via our relationships with US-based retailers who are gaining a presence in this emerging market.

隨著我們對售後零件的需求增加，我們在墨西哥的硬零件銷售持續成長。這個市場的成長速度令人興奮，我們已做好充分準備，利用我們的足跡來滿足不斷增長的需求。我們致力於增加該地區的份額。透過與在這個新興市場佔有一席之地的美國零售商的關係，我們繼續受益並增加銷售額。

Favorable long-term industry dynamics continue to bode well for the company, and we are extremely well positioned for sustainable top- and bottom-line growth in our hard parts business, as well as our testing solutions business. We are focused on growth across all the product lines, including our quality build brand, which is gaining market share within the professional installer market. This includes our most recent additions to our portfolio of brake calipers, brake pads and brake rotors. I reiterate, as we grow these product lines, we expect overall gross margin accretion.

有利的長期行業動態繼續對公司來說是個好兆頭，我們處於非常有利的位置，可以實現我們的硬零件業務以及測試解決方案業務的可持續頂線和底線增長。我們專注於所有產品線的成長，包括我們的優質建立品牌，該品牌正在專業安裝市場中贏得市場份額。這包括我們最新添加的煞車卡鉗、煞車片和煞車碟盤產品組合。我重申，隨著我們擴大這些產品線，我們預期整體毛利率會增加。

In short, we have the capacity and capabilities to support our customers' increasing demand across multiple lines. Our expected positive cash flow on an annualized basis will enable us the flexibility to further pay down debt and pursue other related opportunities to enhance shareholder value.

簡而言之，我們有能力滿足客戶在多條線上不斷增長的需求。我們預期的年化現金流量將使我們能夠靈活地進一步償還債務並尋求其他相關機會來提高股東價值。

In conclusion, non-discretionary aftermarket parts of the internal combustion engine market will be here for decades, an outlook supported by recently updated industry data showing that the average age of vehicles is now 12.8 years. It is worth highlighting that 98.8% of the US car park is comprised of hybrid and internal combustion vehicles.

總之，內燃機市場的非自主售後零件將存在數十年，最近更新的產業數據支持這一前景，顯示車輛的平均車齡目前為 12.8 年。值得強調的是，美國 98.8% 的停車場都是混合動力和內燃機汽車。

One of our key competitive advantages is our ability to offer a broad range of applications for all makes and models. We remain focused on newer model applications and our ability to meet expected demand as these vehicles enter the replacement market.

我們的主要競爭優勢之一是我們能夠為所有品牌和型號提供廣泛的應用。隨著這些車輛進入替換市場，我們仍然專注於更新的車型應用以及滿足預期需求的能力。

Finally, before I turn the call over to David, I'd like to comment on our recent announcements regarding Jack Liebau and Anil Shrivastava, who are standing for election to our Board at the company's annual meeting next month. Their impressive backgrounds and qualifications are detailed in the press releases and proxy statement.

最後，在將電話轉給 David 之前，我想對我們最近關於 Jack Liebau 和 Anil Shrivastava 的公告發表評論，他們將在下個月的公司年會上競選我們的董事會成員。他們令人印象深刻的背景和資歷在新聞稿和委託書中有詳細介紹。

Let me just say both of these candidates offer unique perspectives and insights that will complement our commitment to driving shareholder value, at a particularly exciting point in the company's history. These two fine candidates are indicative of our commitment to our Board refreshment program. I encourage everyone to read their biographies and support the nominees.

我只想說，這兩位候選人都提供了獨特的視角和見解，將補充我們在公司歷史上特別令人興奮的時刻推動股東價值的承諾。這兩位優秀候選人表明了我們對董事會更新計劃的承諾。我鼓勵每個人閱讀他們的傳記並支持被提名者。

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

我現在將把電話轉給大衛，以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 first reiterate key financial performance metrics for our fiscal '25 first quarter that we highlighted in this morning's news release.

謝謝你，塞爾溫，大家早安。我鼓勵大家閱讀今天早上發布的收益新聞稿以及將於今天稍後提交的 10-Q 報告。讓我先重申我們在今天早上的新聞稿中強調的 25 財年第一季的關鍵財務業績指標。

Net sales increased 6.4% to a first-quarter record of $169.9 million. Gross profit increased 9.8% to $29.2 million. Gross margin increased modestly to 17.2%. Operating results impacted by an unfavorable non-cash $11.1 million foreign exchange loss from lease liabilities and forward contracts, implemented cost reduction initiatives to provide expected annualized savings of approximately $7 million. Net sales for the fiscal '25 first quarter increased 6.4% to a first-quarter record, $169.9 million from $159.7 million in the prior year.

第一季淨銷售額成長 6.4%，達到創紀錄的 1.699 億美元。毛利成長 9.8%，達到 2,920 萬美元。毛利率小幅成長至 17.2%。經營業績受到租賃負債和遠期合約造成的 1,110 萬美元不利非現金外匯損失的影響，實施了成本削減舉措，預計年化節省約 700 萬美元。2025 財年第一季的淨銷售額成長 6.4%，從上一年的 1.597 億美元增至 1.699 億美元，創第一季紀錄。

Gross profit for the fiscal '25 first quarter increased 9.8% to $29.2 million from $26.6 million a year earlier. I should mention that gross profit for the quarter was impacted by non-cash items. The non-cash items reflect core and finished good premium amortization and revaluation of cores on customer shelves, which are unique to certain of our products required by GAAP. The total for these non-cash items in the quarter was approximately $2.7 million. A more detailed explanation of core accounting is available in a video posted on the company's website.

25 財年第一季的毛利從去年同期的 2,660 萬美元成長了 9.8%，達到 2,920 萬美元。我應該提到，該季度的毛利受到非現金項目的影響。非現金項目反映了核心和成品的溢價攤銷以及客戶貨架上核心的重估，這對於我們公認會計準則要求的某些產品來說是獨一無二的。本季這些非現金項目的總額約為 270 萬美元。該公司網站上發布的影片提供了有關核心會計的更詳細說明。

Gross margin for the fiscal '25 first quarter increased to 17.2% from 16.6% a year earlier. Gross margin for the fiscal first quarter was negatively impacted by higher returns as a percentage of sales, but we expect to return to normalized return levels going forward. Additional prices increases in effect and operating efficiencies will enhance gross margin, due primarily to a $15.3 million increased non-cash mark-to-market foreign exchange loss compared with the prior year and a $1.9 million increased expense resulting from currency exchange rates compared with the prior year as well as $2.9 million severance expenses, operating expenses were $35.6 million compared with $16.1 million last year. I should note that excluding these items above, operating expenses decreased by $644,000 to $20.7 million compared with $21.3 million a year earlier.

2025 財年第一季的毛利率從去年同期的 16.6% 增至 17.2%。第一財季的毛利率受到較高的回報率（佔銷售額的百分比）的負面影響，但我們預計未來將恢復到正常化的回報水平。額外的價格上漲和營運效率將提高毛利率，這主要是由於與前一年相比，非現金按市值計價的外匯損失增加了1,530 萬美元，以及與上一年相比，貨幣匯率導致的費用增加了190 萬美元。我應該指出，排除上述這些項目，營運費用比一年前的 2,130 萬美元減少了 644,000 美元，達到 2,070 萬美元。

Non-cash loss for the foreign exchange impact of lease liabilities and forward contracts was $11.1 million compared with a non-cash gain of $4.3 million a year earlier. In addition, the company incurred a $2.9 million severance expenses due to headcount reductions in connection with our strategy to utilize our global footprint to enhance operating efficiencies with expected annualized cost reductions of approximately $7 million, which includes salary, infrastructure and other related operating expenses.

租賃負債和遠期合約的外匯影響造成的非現金損失為 1,110 萬美元，而去年同期的非現金收益為 430 萬美元。此外，由於我們利用全球足跡提高營運效率的策略而進行了裁員，因此公司產生了 290 萬美元的遣散費，預計年化成本減少約 700 萬美元，其中包括工資、基礎設施和其他相關營運費用。

Results for the fiscal first quarter were impacted by $2.7 million of higher interest expenses primarily due to increased collection of receivables, utilizing accounts receivable discount programs on higher sales. Partially offset by lower average outstanding balances under the company's credit facility. Interest expense was $14.4 million compared with $11.7 million for last year, which is primarily related to accounts receivable discount programs.

第一財季的業績受到利息支出增加 270 萬美元的影響，這主要是由於應收帳款催收增加，並利用應收帳款折扣計劃來提高銷售額。部分被公司信貸額度下平均未償餘額下降所抵銷。利息支出為 1,440 萬美元，而去年為 1,170 萬美元，主要與應收帳款折扣計劃有關。

Interest expense related to accounts receivable discount programs was $9.5 million compared with $6.3 million for the prior year. We are working diligently to address the higher interest environment, particularly areas that we can control.

與應收帳款折扣計劃相關的利息支出為 950 萬美元，而上一年為 630 萬美元。我們正在努力解決更高的利益環境，特別是我們可以控制的領域。

In addition, we continue to work with our customers to mitigate higher interest rates. For the first quarter, income tax benefit was $178,000 compared with $9,000 income tax benefit for the prior year. The low effective tax rate benefit for the fiscal first quarter was due in part to the inability to recognize the benefit of losses at specific jurisdictions. However, we expect these losses will be utilized against future profits, which will benefit future tax rates. Obviously, there are various factors impacting the tax effect.

此外，我們繼續與客戶合作以降低更高的利率。第一季的所得稅優惠為 178,000 美元，而前一年的所得稅優惠為 9,000 美元。第一財季有效稅率較低的部分原因是無法認識到特定司法管轄區的虧損所帶來的好處。然而，我們預計這些損失將用於抵消未來利潤，這將有利於未來的稅率。顯然，影響稅收效果的因素是多方面的。

As a result of the items discussed above, net loss for the fiscal '25 first quarter was $18.1 million, compared with a net loss of $1.4 million a year ago. With higher expected sales volume moving forward and the full impact of certain price increases already in effect as well as operating efficiencies, results are expected to further improve.

由於上述項目的影響，25 財年第一季的淨虧損為 1,810 萬美元，而去年同期的淨虧損為 140 萬美元。隨著預期銷量的提高以及某些價格上漲已經生效的全面影響以及營運效率，預計業績將進一步改善。

Due primarily to the items I discussed previously, EBITDA for the fiscal first quarter was negative $1.1 million, reflecting the negative $12.6 million impact of non-cash items and $2.9 million in cash items, in Exhibit 3 of this morning's earnings press release. EBITDA before the impact of non-cash and cash items mentioned above was $14.4 million for the first quarter.

主要由於我之前討論的項目，第一財季的EBITDA 為負110 萬美元，反映了非現金項目1260 萬美元的負影響和現金項目290 萬美元的影響，如今天上午的收益新聞稿的圖表3所示。第一季扣除上述非現金和現金項目影響後的 EBITDA 為 1,440 萬美元。

Now we will move on to cash flow and key corporate items. The company used cash of approximately $20.8 million in operating activities, during the fiscal '25 first quarter, impacted by a reduction of accounts payable related to the seasonal inventory growth during the second half of fiscal year 2024 to support expected business increases for fiscal year 2025.

現在我們將繼續討論現金流和關鍵公司項目。受 2024 財年下半年季節性庫存成長相關應付帳款減少的影響，該公司在 2025 財年第一季的經營活動中使用了約 2,080 萬美元的現金，以支持 2025 財年的預期業務成長。

We anticipate an increase in operating profit on a year-over-year basis for fiscal '25 and the generation of positive cash flow for the year, supported by organic growth from customer demand and operating efficiencies from our global footprint expansion.

我們預計，在客戶需求的有機成長和我們全球業務擴張帶來的營運效率的支持下，25 財年的營業利潤將同比增長，並在本年度產生正現金流。

In addition to our goal of generating increased operating profits, we're diligently focused on opportunities to neutralize working capital, including customer demand, planning, enhanced inventory management, and further extending our vendor payment terms. We expect increasing financial performance from both new and existing product lines, including our emerging brake categories.

除了增加營業利潤的目標外，我們還努力尋找抵銷營運資金的機會，包括客戶需求、規劃、增強庫存管理以及進一步延長供應商付款條件。我們預計新產品線和現有產品線（包括我們新興的煞車類別）的財務表現都會提高。

Net bank debt was $136.3 million at the end of the quarter, compared with $114 million as of March 31, 2024. However, net debt was lower compared with $168.1 million at prior year June 30, 2023. Total cash and availability was approximately $90 million. As previously provided, our expectation for fiscal '25 is to achieve sales in the range of $746 million and $766 million, representing between 3.9% and 6.6% year-over-year growth respectively. We expect to see margin accretion from efficiencies related to higher volume, price increases, and cost-cutting initiatives.

截至本季末，銀行淨債務為 1.363 億美元，截至 2024 年 3 月 31 日為 1.14 億美元。然而，淨債務低於前一年 2023 年 6 月 30 日的 1.681 億美元。現金和可用資金總額約為 9000 萬美元。如前所述，我們對 25 財年的銷售額預期為 7.46 億美元和 7.66 億美元，年比分別成長 3.9% 和 6.6%。我們預計，與銷售增加、價格上漲和成本削減措施相關的效率將帶來利潤成長。

With respect to cash flow, our expectation is to generate positive cash flow for the full fiscal year as I previously highlighted. Operating income is expected to be between $62 million and $67 million before the non-cash foreign exchange impact of lease liabilities and forward contracts, and the non-cash impact of revaluation of cores on customer shelf and also before onetime severance expenses.

關於現金流，我們的期望是在整個財年產生正現金流，正如我之前所強調的。在扣除租賃負債和遠期合約的非現金外匯影響、客戶貨架核心重估的非現金影響以及一次性遣散費之前，營業收入預計在 6,200 萬美元至 6,700 萬美元之間。

The company estimates other non-cash items will be approximately $17 million, including core and finished good premium amortization and share-based compensation. The company estimates depreciation and amortization will be approximately $11 million.

該公司估計其他非現金項目約為 1700 萬美元，包括核心和成品溢價攤銷以及基於股份的補償。該公司估計折舊和攤提約 1,100 萬美元。

In summary, operating income before the impact of the non-cash and cash items mentioned previously, and before depreciation and amortization, is expected to be between $90 million and $95 million. For further explanation on the reconciliation of items that impact results and non-GAAP financial measures, please refer to Exhibits 1, 2, 3 in this morning's earnings press release.

總之，在前面提到的非現金和現金項目影響之前以及折舊和攤銷之前，營業收入預計在 9,000 萬美元至 9,500 萬美元之間。有關影響績效的項目和非 GAAP 財務指標的進一步說明，請參閱今天上午的收益新聞稿中的圖表 1、2、3。

I would now like to open the line for questions.

我現在想開通提問熱線。

(Operator Instructions) Matt Koranda, Roth Capital Partners.

（操作員說明）Matt Koranda，Roth Capital Partners。

Good afternoon. This is Joseph on for Matt today. I wanted to ask if you guys could provide a breakdown of revenue by product in -- by product line in 1Q? And if you guys can comment on inventory at retail customers and sell-through versus sell-in dynamics in your key product categories during 1Q and through quarter to date?

午安.今天是約瑟夫替馬特發言。我想問你們是否可以提供第一季按產品線劃分的收入明細？你們是否可以對第一季和截至目前為止的關鍵產品類別的零售客戶庫存以及銷售與銷售動態發表評論？

Okay. I could start. For the first quarter, the product mix was 65% rotating electrical, wheel hubs was 7%, brakes were 24% and others was 4%.

好的。我可以開始了。第一季度，產品結構中旋轉電動佔 65%，輪圈佔 7%，煞車佔 24%，其他佔 4%。

Yes. In terms of just moving forward and talking about the retailers and inventory levels, I mean, I think in general, what we're seeing is that there's a pickup in the business. I mean, I think we've had some softness, I think that there's been -- wherever there's been a possibility for the consumer to defer maintenance, they've had that deferral. But the -- I think the hot weather and we're seeing -- we're certainly -- our sales in July, but frankly, it was the highest July we've ever had in the history of the company. So we're seeing customers bring in inventory and with the expectation of some pickup.

是的。就繼續前進並談論零售商和庫存水平而言，我的意思是，我認為總的來說，我們看到的是業務有所回升。我的意思是，我認為我們有一些軟弱，我認為無論消費者有可能推遲維護，他們都會推遲。但是，我認為天氣炎熱，而且我們確實看到了 7 月份的銷售額，但坦白說，這是我們公司歷史上最高的 7 月份銷售額。因此，我們看到客戶帶來了庫存，並期望進行一些提貨。

I mean, I don't think we're totally there yet, but as an industry, but due to, again, disposable income of the consumer, but, certainly. I think we are on our way, and we're extremely encouraged by our progress right now. I think that in conjunction, by the way, with the significant cost savings initiatives, one, we've completed and others that are still in process. We're excited about where we're moving to.

我的意思是，我認為我們還沒有完全做到這一點，但作為一個行業，但同樣是由於消費者的可支配收入，但是，當然。我認為我們正在路上，我們現在的進展讓我們深受鼓舞。順便說一句，我認為，與重大成本節約舉措相結合，我們已經完成了一項舉措，而其他舉措仍在進行中。我們對要搬到的地方感到很興奮。

And if I could just squeeze one more in there, we wanted to see what your latest thinking on interest expense, given rates are coming down? How should we think about the cash interest savings potentially to come for the rest of the year?

如果我可以再擠進去一點，我們想看看您在利率下降的情況下對利息支出的最新看法？我們該如何考慮今年剩餘時間可能節省的現金利息？

Well, I mean every point in interest reduction just on the supply chain factoring is worth $7 million to us. So we're encouraged by the reduction in interest. I mean, that's certainly been a tremendous headwind for us. We are encouraged that the rates are coming down, and we're excited about that. And -- but we're not stopping at that. I mean we're taking every bit of waste or what -- when we use the concept of lean manufacturing and lean operations, waste has to be eliminated.

嗯，我的意思是，僅供應鏈保理方面的每一點利息降低對我們來說就價值 700 萬美元。因此，我們對利息的減少感到鼓舞。我的意思是，這對我們來說無疑是一個巨大的阻力。我們對利率的下降感到鼓舞，對此我們感到很興奮。而且——但我們不會就此止步。我的意思是，我們正在吸收每一點浪費或什麼——當我們使用精益製造和精益運營的概念時，必須消除浪費。

And with the volumes that we're getting now, and our new -- some of our new product lines, we can take and -- it's not -- I hate to use the word waste a little bit, but we can take our efficiencies up pretty dramatically. But that is a sort of term of art for the manufacturer. So we're excited. I mean, we think that there's a lot of tailwinds for us on the earnings side moving forward.

憑藉我們現在獲得的數量，以及我們的新產品線，我們可以採取——這不是——我有點討厭使用“浪費”這個詞，但我們可以採取我們的效率增長相當顯著。但這對製造商來說是一種藝術術語。所以我們很興奮。我的意思是，我們認為未來獲利方面有很多有利因素。

Alright. Thank you for taking my question, guys. I will back into queue.

好吧。謝謝你們回答我的問題，夥伴們。我會回到隊列中。

Bill Dezellem, Tieton Capital.

比爾·德澤勒姆，泰頓資本。

Thank you. Would you please start with inventory and discuss kind of why you saw that increase versus a year ago level?

謝謝。請您從庫存開始，並討論為什麼您會看到庫存與一年前相比增加？

So the inventory, there was a small growth in the first quarter, primarily for the update -- upcoming -- sales increases we're expecting. So we are ramping up our guidance, again, is a strong growth for the full fiscal year. So we need the inventory to supply our demand.

因此，第一季的庫存有小幅成長，主要是因為我們預期的更新——即將到來的——銷售成長。因此，我們再次提高了整個財年的強勁成長預期。所以我們需要庫存來滿足我們的需求。

Yes. And I think you'll see that moderate pretty dramatically. I mean, as we're coming into our season, our second quarter is much stronger than our first quarter. So you'll see significant progress in working capital as we get through this quarter.

是的。我認為你會非常戲劇性地看到這種溫和。我的意思是，隨著我們進入賽季，我們的第二季度比第一季要強得多。因此，當我們度過本季時，您將看到營運資金的重大進展。

Thank you. And then on that note, when does the next tranche of Brake business come into your revenues?

謝謝。那麼，下一批煞車業務何時會計入您的收入？

Let me try and -- the biggest piece starts in January, but we have other new business that's starting between now and then. We have a new business in Wheel Hubs that's starting now, and we have additional rotating electrical business that's starting in the next few two to three months and then additional brake business starting and significant new business in our diagnostic business and some additional hard parts categories and -- and again, we don't want to get ahead of our skis. I mean we've got this in our guidance, but the amount of opportunities that we're getting and seeing, have the correct pricing with the correct operating efficiencies, certainly are driving to see better profit metrics as we get through this year.

讓我嘗試一下——最大的部分從一月開始，但從現在到那時我們還有其他新業務正在開始。我們的輪轂新業務現在正在啟動，我們還有額外的旋轉電氣業務將在接下來的兩到三個月內啟動，然後額外的煞車業務將啟動，我們的診斷業務以及一些額外的硬零件類別中的重要新業務以及——再說一次，我們不想超越我們的滑雪板。我的意思是，我們已經在我們的指導中提到了這一點，但是我們獲得和看到的機會數量，具有正確的定價和正確的運營效率，肯定會推動我們在今年度過更好的利潤指標。

Thank you. And I think in the opening remarks, David, you had mentioned that returns were higher than normal. Could you walk through the dynamics behind that? And what aspect of that is unique versus something that may naturally happen again?

謝謝。大衛，我認為您在開場白中提到回報率高於正常水平。能介紹一下這背後的動態嗎？與可能再次自然發生的事情相比，其中哪些方面是獨特的？

Yes. So it happens every now and again, Bill. And it's -- and I'm not going to call out customers. We have one customer, a very large customer, whose purchases were at a lower level but returns are -- there's a general rate of return. And so you get the same returns back regardless of the purchases. So the returns as a percentage of purchases, for this particular customer, were higher.

是的。比爾，這種事時常發生。我不會點名顧客。我們有一個客戶，一個非常大的客戶，他的購買量較低，但回報率很高。因此，無論購買多少次，您都可以獲得相同的回報。因此，對於該特定客戶來說，回報率佔購買的百分比更高。

Now that has changed. It has already reversed out in this quarter. So again, we're a little early in the quarter, but so far, very, very, very strong, and those return levels should come back to normalized levels. They are at normalized levels now, hopefully, that will maintain itself.

現在情況已經改變了。這一情況在本季已經出現逆轉。再說一遍，我們在本季度有點早，但到目前為止，非常非常強勁，這些回報水平應該會回到正常水平。它們現在處於正常水平，希望能夠維持下去。

And then we had one other -- and it's not -- that won't come back, but we had one other large incentive program that was taken early as a result of renewal of a contract. So -- and that's -- it's one time for that particular event, but I mean, that affected us a little bit as well in the quarter. But we -- again, those are both behind us and again, we've seen significantly more positive energy in sales right now.

然後我們還有另一個 - 它不會 - 不會回來，但我們還有另一個大型激勵計劃，由於續約合約而提前採取。所以——那就是——這是那個特定事件的一次，但我的意思是，這在本季也對我們產生了一些影響。但我們——再說一遍，這些都已經過去了，而且我們現在在銷售中看到了明顯更多的正面能量。

Thank you. What was the -- I missed in the opening remarks, the dollar impact of that to income?

謝謝。我在開場白中錯過了美元對收入的影響是什麼？

We did not disclose the dollar amount, but it did have a small impact on the gross margin percentage as well as sales.

我們沒有透露具體金額，但它確實對毛利率和銷售額產生了很小的影響。

Great. Thank you. And then one additional question relative to the Quality-Built brand, are you seeing any spillover from that brand's success in the professional market on the brake side for the rotating electrical side of the business? Or are those different enough that there really is not an opportunity for a benefit?

偉大的。謝謝。然後，還有一個與「優質打造」品牌相關的問題，您是否看到該品牌在煞車方面專業市場上的成功對旋轉電氣方面的業務有任何溢出效應？或者這些差異是否足夠大以至於確實沒有機會獲得好處？

Yes. You open -- I'm going to give you a little more of some background, some great feedback that we're getting, and then I'm going to try and open to answer your question. On the brake side, I've had very unique calls from customers that -- particularly one large customer that is saying, that the acceptance rate and the renewal rate of installers that are using our product is extraordinarily good. And unusual call from a particular customer saying, how they think we've got something extremely special.

是的。你打開——我會給你更多一些背景知識，一些我們得到的很好的回饋，然後我將嘗試打開回答你的問題。在煞車方面，我接到了來自客戶的非常獨特的電話，特別是一位大客戶說，使用我們產品的安裝人員的接受率和續訂率非常好。一位特定客戶打來的不尋常電話說，他們認為我們有一些非常特別的東西。

And when you hear that from the field, I mean, that's pretty exciting. So when the installer sees that name and has a great experience on it, it will spill over, and is spilling over. And so we'll continue, I think, to see strong sales. I think we're going to see strong sales clearly from Quality-Built across the professional installer market across all of our product lines. And certainly, will help all of that and depending on which one leads, we have a portfolio of excellent products. So any experience with the Quality-Built brand should add to experience in other product lines for the Quality-Built brand.

當你從現場聽到這一消息時，我的意思是，這非常令人興奮。因此，當安裝者看到這個名字並且有很好的體驗時，它就會溢出，而且正在溢出。因此，我認為我們將繼續看到強勁的銷售。我認為我們將在專業安裝商市場的所有產品線中看到來自「品質打造」的強勁銷售。當然，這將有助於所有這一切，並且根據哪一個領先，我們擁有一系列優秀的產品。因此，任何與「品質打造」品牌相關的經驗都應該加入「品質打造」品牌其他產品線的經驗。

And I also want to say, while I got you, Bill, and I appreciate you just giving me the floor here a little bit, but the growth in the Mexican opportunity for us is proving to be significant and we'll get more granular later as we go into the year. But the growth there continues to be very, very exciting. And we think there's a big opportunity for us there. And then not last, but a couple more things is, the diagnostic business is now pretty much being embraced by every major chain out there. And so we're going to see further growth and high margin out of that diagnostic business.

我還想說，雖然我得到了你，比爾，我很感謝你在這裡給我一點發言機會，但事實證明，墨西哥的增長機會對我們來說是重要的，我們稍後會更詳細地介紹當我們進入這一年時。但那裡的成長仍然非常非常令人興奮。我們認為那裡對我們來說有很大的機會。最後，還有幾件事是，診斷業務現在幾乎被每個主要連鎖店所接受。因此，我們將看到該診斷業務的進一步成長和高利潤率。

And then our heavy-duty rotating electrical business, I mean it's just the amount of momentum that's coming in at depend. And outlook and the opportunity on that is also embraced -- it's really -- we're embracing that and that's really, I mean, it's really positive. So those are all tailwinds that we see going through the -- through our system and whatever -- on the negative side, and it's just -- it's pretty small, but the electric vehicle testing business, and we're going to look at what to do strategically with that business, but that's a little bit slower for us. Very, very small part of our business, but a lot slower -- the electric, and this is the good news and the bad news, the electric vehicle space is not unfolding the way, I think, many people thought it would just be an instant and immediate, everything is electric vehicle roaring.

然後是我們的重型旋轉電氣業務，我的意思是，這只是取決於即將到來的動力量。前景和機會也受到歡迎——確實——我們正在擁抱這一點，我的意思是，這真的非常積極。因此，這些都是我們看到的順風車——透過我們的系統和其他任何東西——在消極方面，它只是——它很小，但是電動車測試業務，我們將看看什麼戰略性地開展這項業務，但這對我們來說有點慢。我們業務的一部分非常非常小，但速度要慢得多——電動車，這是好消息也是壞消息，電動車領域並沒有以這種方式展開，我認為，很多人認為這只是一個剎那間，一切都是電動車的轟鳴。

You start reading, I think car magazine and the Wall Street Journal had articles this week about how these major automotive companies are now rethinking and scrapping their combustion engine lines and actually trying to revamp them and put them back in place. And so the combustion engine, hybrid technology arena seems to be gaining far more momentum and the electric vehicle arena seems to be losing a lot of momentum. And so that bodes well for us at the end of the day. Sorry for a bit of a run on answer. I hope I hit all your things, but it gave me an opportunity to express myself on some of these items.

你開始閱讀，我認為汽車雜誌和華爾街日報本周有文章介紹這些主要汽車公司現在如何重新思考和廢棄他們的內燃機生產線，並實際上嘗試對其進行改造並將其恢復原狀。因此，內燃機、混合動力技術領域似乎正在獲得更大的動力，而電動車領域似乎正在失去許多動力。因此，最終這對我們來說是個好兆頭。抱歉，回答有點離題。我希望我能做到你所有的事情，但這給了我一個機會在其中一些項目上表達自己。

Selwyn, it did hit my questions, but did create two others. Relative to the call that you've received that the renewal rate with the installers and the quality built brand is very high. Was that specific to the break pad and rotors? Or was it broader than that or on a different product line?

Selwyn，它確實解決了我的問題，但也創造了另外兩個問題。相對於您接到的電話，安裝人員和優質品牌的續約率非常高。這是煞車片和轉子特有的嗎？或者它的範圍比這更廣泛，還是在不同的產品線上？

Specifically to the pad and rotor program. So very, very encouraging there. I will say one of the things that's happening in the industry around pads and routers is that, there's a general significant softness in the tire industry. I'm hearing that it's getting a little bit better, but still very soft.

具體到煞車片和轉子方案。非常非常令人鼓舞。我要說的是，圍繞墊塊和刳鉋機的行業正在發生的事情之一是，輪胎行業普遍存在明顯的疲軟狀態。我聽說情況有所好轉，但仍然很軟。

And what happens is -- when that happens is that the installer usually -- they get the opportunity to replace all four tires in the vehicle will cross-sell the brake program. What's happening is the consumer is just electing to go with the least expensive repair and only repair the one tire or whatever they need. And so the cross-selling opportunity on these brake jobs is much slower than it has been in a while. And that's providing some headwind in those categories.

發生的情況是——當這種情況發生時，安裝人員通常有機會更換車輛中的所有四個輪胎，從而交叉銷售煞車程序。發生的情況是，消費者只是選擇最便宜的維修，並且只維修一個輪胎或他們需要的任何東西。因此，這些制動工作的交叉銷售機會比過去一段時間要慢得多。這給這些類別帶來了一些阻力。

Having said that, we're coming off a very small base. And we expect that to continue to grow despite that. But that will change as well as tires don't last forever, and consumer is going to need to replace them.

話雖如此，我們的基礎非常小。儘管如此，我們預計這一數字仍將持續成長。但這種情況將會改變，輪胎不會永遠持續下去，消費者將需要更換它們。

And the second question -- I'm sorry, Selwyn, go ahead.

第二個問題－對不起，Selwyn，請繼續。

No. About the pads, as you had mentioned, just summarizing back, that's where extreme satisfaction on the pad rotor program.

不。關於煞車片，正如您所提到的，只是總結一下，這就是對煞車片轉子計劃極度滿意的地方。

Great. And then relative to the opportunity in Mexico, I've been a little unclear how to think about that opportunity because the installed base of vehicles is much smaller than the US. My impression, this is not -- I don't know this to be factually correct, but my impression is that the average age of the vehicles in Mexico would be older than the US. So how are you thinking about this? If my perception is correct that the fleet is smaller, but the age is higher, which would lead to more repairs. What's the right way to be thinking about Mexico?

偉大的。然後相對於墨西哥的機會，我有點不清楚如何考慮這個機會，因為車輛的安裝基數比美國小得多。我的印像是，這不是——我不知道這是否正確，但我的印像是墨西哥車輛的平均年齡比美國的還要老。那麼您對此有何看法？如果我的看法是正確的，那麼機隊規模較小，但機齡較高，這將導致更多的維修。思考墨西哥的正確方式是什麼？

Yes. So you're correct. I mean, the fleet is definitely smaller than the United States. It's still a pretty significant fleet, and the average age continues to get older there. But disposable income, I mean -- and this is a bad thing for us is minimum wages in Mexico keep going up. Disposable income in Mexico keeps going up and the market is evolving there. And so historically, you've had what I would classify as an R&R market where something that went wrong with the car, if an alternator went bad, they tow it off and the mechanic would rebuild it or they would replace componentry in it.

是的。所以你是對的。我的意思是，艦隊肯定比美國小。它仍然是一支相當重要的機隊，平均機齡繼續變老。但我的意思是，可支配收入——這對我們來說是一件壞事，因為墨西哥的最低工資不斷上漲。墨西哥的可支配收入不斷增加，那裡的市場也不斷發展。從歷史上看，我將其歸類為 R&R 市場，汽車出了問題，如果交流發電機壞了，他們會把它拖下來，機械師會重建它，或者更換其中的部件。

Today, you're seeing the AutoZone's and the O'Reilly's of the world, who are leading the US charger to Mexico selling finished goods, and so the average price point of pads for the these vehicles has fallen out, people are spending more money and they're more concerned about how they repair that vehicle. And the amount of penetration -- formal penetration -- the market there is defined as other. There's so many small players that have been in that market.

今天，你會看到世界各地的 AutoZone 和 O'Reilly 正在將美國充電器帶到墨西哥銷售成品，因此這些車輛的充電墊的平均價格已經下降，人們正在花更多的錢他們更關心如何修理那輛車。滲透程度——正式滲透——市場被定義為其他。這個市場上有很多小企業。

Now you've got big consolidators that are rolling into that market and opening up significant stores. I'd encourage you just to listen to both O'Reilly and AutoZone's public announcements on Mexico. And we're playing -- and not only that, I mean, we're playing -- we have a great product lineup for the Mexican market. We're in Mexico. We have state-of-the-art capabilities right there. And we're doing well, and we're going to do a lot better in Mexico. It's going to turn out to be a great business. I mean, I do think it's a north of a $100 million opportunity for us.

現在，大型整合商正在湧入該市場並開設重要商店。我鼓勵您聽聽 O'Reilly 和 AutoZone 關於墨西哥的公開聲明。我們正在努力——不僅如此，我的意思是，我們正在努力——我們為墨西哥市場提供了很棒的產品陣容。我們在墨西哥。我們擁有最先進的能力。我們做得很好，而且我們在墨西哥會做得更好。這將會成為一項偉大的事業。我的意思是，我確實認為這對我們來說是一個價值 1 億美元以上的機會。

Great. Thank you for taking all my questions.

偉大的。感謝您回答我所有的問題。

Thank you. And there are no further questions at this time. Selwyn Joffe, I'll turn the call back over to you.

謝謝。目前沒有其他問題。Selwyn Joffe，我會將電話轉回給您。

Okay. Thank you so much. So just to summarize, we are bullish, as I've just spoken, as we begin our new fiscal year. We're laser-focused on further efficiencies, and I accentuate that, and we are laser-focused on further efficiencies and fully benefiting from a not easily duplicated global platform, where we can meet demand for non-discretionary products as well as from our diagnostic testing capabilities.

好的。太感謝了。總而言之，正如我剛才所說，當我們開始新的財政年度時，我們持樂觀態度。我們專注於進一步提高效率，我強調這一點，我們專注於進一步提高效率，並充分受益於一個不易複製的全球平台，在這個平台上，我們可以滿足對非全權委託產品的需求以及我們的診斷測試能力。

We are leveraging our expertise in solid customer and supplier partnerships. These include our recently launched supply chain vendor finance program and that benefits our supplier significantly. Our liquidity is strong. We have in excess of $90 million, and we have the resources, capacity and professional expertise to capitalize on significant market opportunities in all of our product lines, particularly our brake related businesses, which are gaining solid momentum.

我們正在利用我們在穩固的客戶和供應商合作夥伴關係方面的專業知識。其中包括我們最近推出的供應鏈供應商融資計劃，這使我們的供應商受益匪淺。我們的流動性很強。我們擁有超過 9000 萬美元的資金，我們擁有資源、能力和專業知識來利用我們所有產品線的重大市場機會，特別是我們的煞車相關業務，這些業務正在獲得強勁的勢頭。

In closing, I've got to recognize the contributions of all of our team members. We are continuously focused on providing the highest level of service. They are outstanding. We are all committed to being the industry leader for parts and solutions that move our world today and in the future. I would also like to extend best wishes to Rudy and Jamie, who are retiring from our Board. We significantly appreciate the great contributions of the others. We also appreciate the continued support of our shareholders.

最後，我必須承認我們所有團隊成員的貢獻。我們始終致力於提供最高水準的服務。他們很出色。我們都致力於成為推動當今和未來世界發展的零件和解決方案的行業領導者。我還要向即將從董事會退休的魯迪和傑米致以最良好的祝愿。我們非常感謝其他人所做的巨大貢獻。我們也感謝股東的持續支持。

I thank everyone again for joining us on the call. We look forward to speaking with you when we host our fiscal 2025 second-quarter call, which is in November, and at various investor conferences and meetings this fall. Thank you very much.

我再次感謝大家加入我們的電話會議。我們期待在 11 月召開的 2025 財年第二季電話會議以及今年秋天的各種投資者會議上與您交談。非常感謝。

And this concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。