Myers Industries Inc (MYE) 2024 Q2 法說會逐字稿

Ladies and gentlemen, welcome to the Myers Industries Q2 2024 earnings call.

女士們、先生們，歡迎參加邁爾斯工業 2024 年第二季財報電話會議。

My name is Kenneth, and I will be coordinating your call today.

我叫肯尼思，今天我將協調您的電話。

(Operator Instructions)

（操作員說明）

I will now hand you over to your host, Meghan Beringer, to begin.

現在我將把您交給主持人梅根·貝林格 (Meghan Beringer)，開始。

Please go ahead.

請繼續。

Thank you, Kenneth.

謝謝你，肯尼斯。

Good morning, everyone, and thank you for joining Myers conference call to review 2024 second-quarter results.

大家早安，感謝您參加邁爾斯電話會議，回顧 2024 年第二季業績。

I'm Meghan Beringer, Senior Director of Investor Relations at Myers Industries.

我是梅根貝林格 (Meghan Beringer)，邁爾斯工業 (Myers Industries) 投資者關係高級總監。

Joining me today is Mike McGaugh, our President and Chief Executive Officer; and Grant Fitz, Executive Vice President and Chief Financial Officer.

今天加入我的是我們的總裁兼執行長 Mike McGaugh；執行副總裁兼財務長格蘭特‧菲茨 (Grant Fitz)。

Earlier this morning, we issued a press release outlining our financial results for the second quarter of 2024.

今天早上早些時候，我們發布了一份新聞稿，概述了 2024 年第二季的財務表現。

We have also posted a presentation to accompany today's prepared remarks, which is available under the Investor Relations tab at www.myersindustries.com.

我們還發布了一份演示文稿，以配合今天準備好的發言，您可以在 www.myersindustries.com 的「投資者關係」標籤下查看該簡報。

This call is also being webcasted on our website and will be archived along with the transcript of the call shortly after this event.

這次電話會議也在我們的網站上進行了網路直播，並將在活動結束後不久與電話會議記錄一起存檔。

After the prepared remarks, we will host a question-and-answer session.

在準備好的發言之後，我們將舉行問答環節。

Please turn to slide 2 of the presentation for our Safe Harbor disclosures.

請參閱簡報的投影片 2，以了解我們的安全港揭露資訊。

I would like to remind you that we may make some forward-looking statements during this call.

我想提醒您，我們可能會在這次電話會議中做出一些前瞻性陳述。

These comments are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

這些評論是根據 1995 年《私人證券訴訟改革法案》的安全港條款提出的。

Such statements are based on management's current expectations and involve risks, uncertainties, and other factors, which may cause results to differ materially from those expressed or implied in these statements.

此類陳述基於管理階層目前的預期，涉及風險、不確定性和其他因素，可能導致結果與這些陳述中明示或暗示的結果有重大差異。

Also, please be advised that certain non-GAAP financial measures, such as adjusted gross profit, adjusted operating income, adjusted EBITDA, and adjusted EPS, may be discussed on this call.

另請注意，本次電話會議可能會討論某些非 GAAP 財務指標，例如調整後毛利、調整後營業收入、調整後 EBITDA 和調整後每股盈餘。

Further information concerning these risks, uncertainties, and other factors are set forth in the company's periodic SEC filings and may be found in the company's 10-Q filings.

有關這些風險、不確定性和其他因素的更多資​​訊在公司定期向 SEC 提交的文件中列出，並且可以在公司的 10-Q 文件中找到。

Now please turn to slide 3 of our presentation.

現在請翻到我們簡報的投影片 3。

I'm pleased to turn the call over to Mike McGaugh.

我很高興將電話轉給麥克麥高。

Thank you, Meghan.

謝謝你，梅根。

Good morning, everyone, and welcome to our second-quarter 2024 earnings call.

大家早安，歡迎參加我們的 2024 年第二季財報電話會議。

I will begin today with a review of the performance highlights from the second quarter.

今天我將先回顧第二季的業績亮點。

I will discuss the progress we're making in executing our strategy.

我將討論我們在執行策略方面取得的進展。

And I will then hand the call to Grant to review in detail our financial results and outlook for the remainder of the year.

然後我將打電話給格蘭特，詳細審查我們的財務表現和今年剩餘時間的前景。

Our second-quarter results were bolstered by the solid performance of our recently acquired Signature Systems business.

我們最近收購的簽名系統業務的穩健表現支撐了我們第二季的業績。

These results reflect the company's first full quarter with Signature Systems.

這些結果反映了該公司 Signature Systems 的第一個完整季度。

This business is benefiting from worldwide investments in infrastructure and enabled Myers to outpace the demand headwinds in the recreational vehicle, marine, and automotive aftermarket end markets.

該業務受益於全球基礎設施投資，使邁爾斯能夠超越休閒車、船舶和汽車售後市場終端市場的需求逆風。

Combined with our cost reduction and operational improvement initiatives across the company, Signature helped us drive an expansion in gross margin, operating margin, and adjusted EBITDA margin sequentially and year over year.

結合我們整個公司的成本削減和營運改善舉措，Signature 幫助我們推動了毛利率、營業利潤率和調整後 EBITDA 利潤率的連續和同比增長。

Myers' second-quarter adjusted EBITDA of $38.9 million and an adjusted EBITDA margin of 17.7% is a strong quarter in terms of performance.

就業績而言，邁爾斯第二季調整後 EBITDA 為 3,890 萬美元，調整後 EBITDA 利潤率為 17.7%。

Adjusted diluted earnings per share also improved year over year.

調整後的稀釋每股收益也較去年同期有所改善。

As I highlighted at our Investor Day earlier this spring, we anticipated demand to be choppy through this year.

正如我在今年春天早些時候的投資者日上所強調的那樣，我們預計今年的需求將會波動。

As I said then, we're not out of the woods yet.

正如我當時所說，我們還沒有走出困境。

Indeed, we are seeing continued soft demand in our sales to the recreational vehicle, marine, and automotive aftermarket end markets.

事實上，我們看到休閒車、船舶和汽車售後終端市場的銷售需求持續疲軟。

In our food and beverage end market, we know that the seed box business is also cyclical.

在我們食品飲料終端市場，我們知道種子盒業務也是有週期性的。

Following years of seed box sales -- following strong years of seed box sales in 2022 and 2023, 2024 is showing signs of cooling demand.

經過多年的種子盒銷售——繼 2022 年和 2023 年種子盒銷售強勁之後，2024 年出現了需求降溫的跡象。

We are growing our industrial box business to help mitigate the volume decline of seed going forward.

我們正在發展工業箱業務，以幫助緩解未來種子數量的下降。

In light of the softer demand, we continue to take actions to reduce costs and increase productivity across the company.

鑑於需求疲軟，我們繼續採取行動降低整個公司的成本並提高生產力。

These actions include the consolidation of three distribution centers in our Myers Tire Supply business, as well as today's announcement of the consolidation of our Atlantic, Iowa, rotational molding facility into our other rotational molding facilities in Indiana.

這些行動包括合併邁爾斯輪胎供應業務的三個配送中心，以及今天宣布將愛荷華州大西洋的滾塑工廠合併到印第安納州的其他滾塑工廠。

We were able to reduce our footprint and reduce our costs due to the productivity gains that I've spoken about in past calls.

由於我在過去的電話中談到了生產力的提高，我們能夠減少佔地面積並降低成本。

We expect these closures to be completed in 2025 and the resulting annual cost savings of approximately $5 million to be fully realized in 2025 as well.

我們預計這些關閉將於 2025 年完成，由此產生的每年約 500 萬美元的成本節省也將在 2025 年完全實現。

With these actions, we are on track to deliver the $7 million to $9 million in annualized cost savings we've committed.

透過這些行動，我們有望實現我們承諾的每年 700 萬至 900 萬美元的成本節約。

These savings will impact the income statement in 2025.

這些節省將影響 2025 年的損益表。

In addition, we are also on track to deliver the $8 million in annualized cost synergies in 2025 in connection with our acquisition of Signature Systems.

此外，我們還有望在 2025 年透過收購 Signature Systems 實現 800 萬美元的年度成本綜效。

Grant will speak to our cost savings and synergy progress in more detail in his segment.

格蘭特將在他的部分中更詳細地談論我們的成本節約和協同進展。

I'm confident that our productivity improvement and cost reduction initiatives will help us navigate the cyclical demand conditions some of our end markets are experiencing, while also positioning the company favorably for when these conditions revert to stronger levels of demand.

我相信，我們提高生產力和降低成本的措施將幫助我們應對一些終端市場正在經歷的周期性需求狀況，同時也使公司在這些狀況恢復到更強勁的需求水平時處於有利地位。

As a result of the continued soft demand conditions in the referenced end markets, we felt it was prudent to lower our full-year adjusted earnings per share guidance to a range of $1.05 to $1.20. Grant will provide a more detailed discussion of our outlook momentarily.

由於參考終端市場的需求狀況持續疲軟，我們認為將全年調整後每股盈餘指引下調至 1.05 美元至 1.20 美元的範圍是謹慎的做法。格蘭特將立即對我們的前景進行更詳細的討論。

But before I hand the call over to Grant, I'd like to speak a few moments reviewing our strategy that continues to guide our decisions and actions as we transform Myers Industries.

但在我將電話轉交給格蘭特之前，我想花一些時間回顧我們的策略，該策略在我們轉型邁爾斯工業的過程中繼續指導我們的決策和行動。

Please turn to slide 4, which provides a reminder of the three-horizon strategy road map that we have followed for the last four years.

請參閱投影片 4，其中提醒我們過去四年來遵循的三視野策略路線圖。

In Horizon 1, we built a strong foundation of operational and commercial excellence.

在地平線 1 中，我們為卓越的營運和商業奠定了堅實的基礎。

We gained experience and scale through smaller bolt-on acquisitions.

我們透過較小規模的補強收購獲得了經驗和規模。

And as a result, we were well positioned to announce our acquisition of Signature Systems, largely accomplishing our Horizon 1 goals by our 2023 target date.

因此，我們完全有能力宣布收購 Signature Systems，在 2023 年目標日期之前基本實現我們的 Horizo​​n 1 目標。

As we enter the second horizon of our journey, we are building on the fundamentals established in Horizon 1 to transform Myers into a stronger, simpler, high-margin growth-oriented company.

當我們進入旅程的第二個地平線時，我們正在以第一個地平線建立的基礎為基礎，將邁爾斯轉變為更強大、更簡單、以高利潤成長為導向的公司。

We believe this strategy and our approach to acquiring and building businesses that have branded products, higher barriers to entry, clear long-term growth tailwinds, and significant commonalities with our four power brands will unlock meaningful value creation for Myers Industries long term.

我們相信，這項策略以及我們收購和建立擁有品牌產品、更高進入障礙、明確的長期成長順風以及與我們的四個強大品牌的顯著共性的業務的方法將為邁爾斯工業長期創造有意義的價值。

Slides 5 and 6 of today's presentation are a reminder of our Horizon 2 strategic imperatives in the resulting strategic lens.

今天示範的投影片 5 和 6 提醒我們在最終策略鏡頭的地平線 2 戰略要務。

This includes a focus on growing the storage, handling, and protection portfolio, as well as a focus on maximizing the value of our engineered solutions and automotive aftermarket portfolios.

這包括專注於發展儲存、搬運和保護產品組合，以及專注於最大限度地提高我們的工程解決方案和汽車售後市場產品組合的價值。

On slide 7, we summarize the progress we've made since our first-quarter earnings call.

在投影片 7 中，我們總結了自第一季財報電話會議以來所取得的進展。

Notably, we are continuing to benefit from strong growth at Signature Systems.

值得注意的是，我們持續受益於 Signature Systems 的強勁成長。

As well, we are realizing gains in productivity and taking cost reduction actions in our engineered solutions and automotive aftermarket portfolios.

此外，我們正在實現生產力的提高，並在我們的工程解決方案和汽車售後市場產品組合中採取降低成本的行動。

Within the storage, handling, and protection portfolio, we have a long runway for growth in the infrastructure and military end markets.

在儲存、處理和保護產品組合中，我們在基礎設施和軍事終端市場上有很長的成長空間。

And we continue to invest capital and innovation in this portfolio.

我們將繼續在該產品組合中投入資本和創新。

In the engineered solutions and automotive aftermarket portfolios, we are focused on maximizing value by driving further improvements in efficiency, reducing our costs, maximizing cash flow, while delivering excellent value to our customers.

在工程解決方案和汽車售後市場產品組合中，我們專注於透過進一步提高效率、降低成本、最大化現金流來實現價值最大化，同時為客戶提供卓越的價值。

These ongoing initiatives, combined with improved growth and profitability across the portfolio and continued contribution from our four power brands listed on slide 8, will help us maximize cash flow and delever appropriately, an important priority for us following the acquisition of Signature Systems.

這些持續的舉措，加上整個投資組合的成長和盈利能力的提高，以及幻燈片8 中列出的四個強大品牌的持續貢獻，將幫助我們最大限度地提高現金流並適當地去槓桿化，這是我們收購Signature Systems 後的一個重要優先事項。

In summary, we believe our second-quarter actions and results demonstrate meaningful progress on our path to transform our company.

總之，我們相信我們第二季的行動和結果表明我們在公司轉型的道路上取得了有意義的進展。

And we are confident that the strategy we are implementing will drive long-term shareholder value creation.

我們相信，我們正在實施的策略將推動長期股東價值創造。

Now I will turn the call over to Grant for a detailed review of our second-quarter financial results and updates to our outlook.

現在我將把電話轉給格蘭特，詳細審查我們第二季的財務表現並更新我們的前景。

Thank you, Mike.

謝謝你，麥克。

I would like to begin on slide 9 to go over the full summary of the second-quarter 2024 financial results.

我想從第 9 張投影片開始回顧 2024 年第二季財務業績的完整摘要。

Net sales were $220.2 million, which increased $11.8 million or 5.7% compared to the second quarter of 2023, with the increase primarily driven by the Signature Systems acquisition, which contributed 15.2% of inorganic sales growth as compared to Q2 of last year, partially offset by a 9.6% organic sales decline related to lower pricing and volumes in both the material handling and distribution segment legacy businesses.

淨銷售額為2.202 億美元，較2023 年第二季增加1,180 萬美元，即5.7%，成長主要由Signature Systems 收購推動，與去年第二季相比，該交易貢獻了15.2% 的無機銷售額成長，部分抵消了由於物料搬運和分銷部門傳統業務的定價和銷售下降，有機銷售額下降了 9.6%。

Our quarterly adjusted gross profit was $79.6 million, an increase of $11 million or 16% compared to $68.6 million in Q2 of last year, largely driven by the Signature Systems acquisition and partially offset by an adjusted gross profit decline in our legacy business.

我們的季度調整後毛利為7,960 萬美元，與去年第二季的6,860 萬美元相比增加了1,100 萬美元，即16%，這主要是由Signature Systems 收購推動的，部分被我們傳統業務調整後毛利的下降所抵銷。

Adjusted gross margin was 36.1% compared to 32.9% in 2023.

調整後毛利率為 36.1%，而 2023 年為 32.9%。

The variance in adjusted gross margin was driven by the acquisition of Signature Systems, favorable product mix, and lower material costs, partially offset by lower pricing and volume.

調整後毛利率的差異是由收購 Signature Systems、有利的產品組合和較低的材料成本所推動的，但部分被較低的價格和銷售所抵消。

Selling, general, and administrative expenses decreased $1.8 million sequentially or 3.4% and $0.7 million year over year or 1.3% to $51.7 million.

銷售、一般和管理費用較上季減少 180 萬美元，或 3.4%，年減 70 萬美元，即 1.3%，至 5,170 萬美元。

SG&A as a percentage of sales decreased to 23.5% compared with 25.8% in the first quarter of 2024 and 25.1% in the same period last year.

SG&A 佔銷售額的百分比下降至 23.5%，而 2024 年第一季為 25.8%，去年同期為 25.1%。

Excluding contributions from Signature Systems, SG&A expenses declined 18% year over year.

不包括 Signature Systems 的貢獻，SG&A 費用年減 18%。

And SG&A as a percentage of sales would have been 22.8%, driven, in part, by lower incentive compensation accruals, reflecting Myers' full-year outlook and other cost savings initiatives.

SG&A 佔銷售額的百分比為 22.8%，部分原因是應計激勵薪酬下降，反映了邁爾斯的全年展望和其他成本節約舉措。

Adjusted operating income in the second quarter increased 51.5% year over year to $28.8 million as compared to $19 million in Q2 of 2023.

第二季調整後營業收入年增 51.5%，達到 2,880 萬美元，而 2023 年第二季為 1,900 萬美元。

Second-quarter adjusted EBITDA was $38.9 million, which increased 57.4% compared to the prior-year quarter, again, largely driven with the addition of Signature Systems.

第二季調整後 EBITDA 為 3,890 萬美元，與去年同期相比成長 57.4%，這在很大程度上得益於 Signature Systems 的加入。

Adjusted EBITDA margin increased 580 basis points to 17.7% from 11.9% in the second quarter of last year.

調整後 EBITDA 利潤率從去年第二季的 11.9% 成長 580 個基點至 17.7%。

And as Mike mentioned, this is one of our strongest quarters of adjusted EBITDA margin -- adjusted EBITDA performance in recent history.

正如麥克所提到的，這是我們最近歷史上調整後 EBITDA 利潤率（調整後 EBITDA 表現）最強勁的季度之一。

Adjusted earnings per share was $0.39 compared to $0.35 in Q2 of 2023, with the variance compared to the second quarter of last year, driven by the improvement in sales and operating margins, offset by increased interest expense related to the term loan, which was used to finance our acquisition of Signature Systems.

調整後每股收益為0.39 美元，而2023 年第二季為0.35 美元，與去年第二季相比存在差異，這是由於銷售和營運利潤率的改善，但被與使用的定期貸款相關的利息費用增加所抵銷為我們收購 Signature Systems 提供資金。

For an overview of each segment's performance, please turn to slide 10.

有關每個細分市場表現的概述，請參閱投影片 10。

For the material handling segment, net sales increased $22.7 million or 15.9% compared to the prior year.

物料搬運領域的淨銷售額比前一年增加了 2,270 萬美元，即 15.9%。

The increase was driven by 22.1% inorganic sales increase related to the Signature Systems acquisition, partially offset by a 6.3% organic sales decline resulting from lower volumes and pricing.

這一成長是由與 Signature Systems 收購相關的 22.1% 無機銷售成長推動的，但部分被銷售和定價下降導致的 6.3% 有機銷售額下降所抵消。

Material handling's adjusted EBITDA increased $11.6 million or 39% to $41.5 million.

物料搬運部門調整後的 EBITDA 增加了 1,160 萬美元，即 39%，達到 4,150 萬美元。

And adjusted EBITDA margin increased to 25% or an improvement of 420 basis points compared to the second quarter of 2023.

調整後 EBITDA 利潤率增至 25%，較 2023 年第二季提高 420 個基點。

These positive deltas were primarily driven by Signature's contribution, which was partially offset by a decrease in sales volume and pricing in our other businesses.

這些正增量主要是由 Signature 的貢獻所推動的，但我們其他業務的銷售和定價下降部分抵消了這一貢獻。

Net sales for the distribution segment decreased $10.9 million or 16.7% year over year to $54.3 million, driven by lower sales volumes and pricing.

由於銷售和定價下降，分銷部門的淨銷售額年減 1,090 萬美元，即 16.7%，至 5,430 萬美元。

The segment's adjusted EBITDA increased -- decreased $0.9 million or 20.1% to $3.8 million, resulting in adjusted EBITDA margin decreasing 30 basis points to 6.9% as compared to 7.2% in the prior-year quarter.

該部門調整後 EBITDA 增加，減少 90 萬美元或 20.1%，至 380 萬美元，導致調整後 EBITDA 利潤率下降 30 個基點至 6.9%，而去年同期為 7.2%。

The variances in EBITDA and margin performance as compared to Q2 of last year were primarily driven by the decline in sales volumes and pricing, partially offset by a favorable sales mix and material costs.

與去年第二季相比，EBITDA 和利潤率表現出現差異，主要是由於銷售和定價下降造成的，但部分被有利的銷售組合和材料成本所抵消。

Slides 11 and 12 of today's presentation provide updates on our progress to achieve our $7 million to $9 million in annualized cost reduction targets and $8 million in synergies with the Signature acquisition.

今天簡報的幻燈片 11 和 12 介紹了我們在實現 700 萬至 900 萬美元的年度成本削減目標以及透過收購 Signature 實現 800 萬美元的協同效應方面取得的最新進展。

As Mike prefaced earlier, we are on our way to achieve these initiatives with the recent cost reductions and the efficiency improvements, as well as the rationalization of our manufacturing footprint.

正如麥克之前所言，我們正在透過最近的成本降低和效率提高以及製造足跡的合理化來實現這些舉措。

These actions include the consolidation of three distribution centers in our Myers Tire Supply business and the consolidation of our Atlantic, Iowa, rotomolding facility into our other rotational molding plants.

這些行動包括整合邁爾斯輪胎供應業務中的三個配送中心，以及將愛荷華州大西洋的滾塑工廠整合到我們的其他滾塑工廠中。

We are able to reduce our footprint and reduce our cost structure due to the productivity gains we've achieved.

由於生產力的提高，我們能夠減少佔地面積並降低成本結構。

We expect these closures to be completed in 2025 and will deliver approximately $5 million in annualized cost savings.

我們預計這些關閉將於 2025 年完成，每年將節省約 500 萬美元的成本。

On slide 12, you will see that we are on plan with our Signature integration.

在幻燈片 12 上，您將看到我們正在計劃進行 Signature 整合。

And we'll continue to benefit from productivity and operational improvements, material savings, and other initiatives.

我們將繼續受益於生產力和營運改善、材料節省和其他措施。

Through these combined initiatives, we will continue our dedicated efforts to self-help the business, which, in turn, will create a new simplified Myers that is advantageously positioned for growth in the coming years.

透過這些綜合舉措，我們將繼續致力於自助業務，從而創建一個新的簡化的邁爾斯，為未來幾年的成長奠定了有利的基礎。

Turning to slide 13.

轉到投影片 13。

Free cash flow for the second quarter of 2024 was $9.9 million compared to $16.7 million for the second quarter of 2023.

2024 年第二季的自由現金流為 990 萬美元，而 2023 年第二季為 1,670 萬美元。

Working capital as a percentage of net sales was up roughly 400 basis points compared to the second quarter of 2023, which reflects an increase from historical trends as a result of the acquisition of Signature Systems.

與 2023 年第二季相比，營運資本佔淨銷售額的百分比增加了約 400 個基點，這反映出收購 Signature Systems 後的歷史趨勢增加。

Because we have the full amount of working capital but not yet at full 12 months of Signature sales.

因為我們擁有全額營運資金，但尚未完成 12 個月的 Signature 銷售。

Taking our debt is necessary to grow through our acquisitions.

為了透過收購實現成長，承擔債務是必要的。

However, as you will see later in the deck, we are well positioned to pay down the debt, with the goal to decrease our net leverage ratio under the credit agreement to below 2 times within two years of the closing of Signature.

然而，正如您稍後將在甲板上看到的那樣，我們有能力償還債務，目標是在 Signature 結束後兩年內將信貸協議下的淨槓桿率降至 2 倍以下。

Capital expenditures for the second quarter of 2024 were $4.4 million.

2024 年第二季的資本支出為 440 萬美元。

And cash on hand at quarter-end totaled $37.3 million.

季度末手頭現金總計 3,730 萬美元。

And finally, our leverage ratio under the credit agreement was 2.6 times.

最後，我們在信貸協議下的槓桿率為2.6倍。

On slide 14, I want to discuss Myers' capital allocation priorities.

在投影片 14 上，我想討論邁爾斯的資本配置優先事項。

As noted, we are focused on creating a simplified Myers through the cost-cutting initiatives and increasing revenue and volumes through the strength of our four power brands.

如前所述，我們致力於透過削減成本措施來創造簡化的邁爾斯，並透過我們四個強大品牌的實力增加收入和銷售。

We are focused on reducing our debt through following the recent -- our debt following the recent Signature Systems acquisition.

我們專注於透過最近收購 Signature Systems 後的債務來減少債務。

And we are targeting to reach a leverage ratio of under 2 times within two years of the closing of Signature Systems.

我們的目標是在 Signature Systems 關閉後兩年內將槓桿率降至 2 倍以下。

We also want to maintain a strong balance sheet and ample liquidity for our business.

我們也希望為我們的業務保持強勁的資產負債表和充足的流動性。

At the end of June, Myers had $37.3 million of cash on hand and over $230 million of a large undrawn credit facility.

截至 6 月底，邁爾斯手頭上有 3,730 萬美元現金，還有超過 2.3 億美元的大額未提取信貸額度。

We will continue to fund maintenance and other CapEx requirements, although as you can see, we reduced our expected CapEx spend with the revisions to our outlook this morning.

我們將繼續為維護和其他資本支出需求提供資金，儘管如您所見，我們透過今天早上修改前景而減少了預期資本支出。

We also plan to continue with our existing practices for dividends.

我們也計劃繼續採用現有的股利做法。

Finally, we will evaluate the most beneficial uses of cash to create value through additional acquisitions with targets similar to Signature, with clear commonalities to our four power brands or potentially through share buybacks, pending the timing of potential acquisition opportunities and when debt has been paid down to more historic levels.

最後，我們將評估現金的最有利用途，以透過與Signature 類似的目標進行額外收購來創造價值，這些收購與我們的四個強勢品牌具有明顯的共同點，或者可能透過股票回購，等待潛在收購機會的時機和債務何時償還下降到更具歷史意義的水平。

Now please turn to slide 15 for an update on our outlook for the fiscal year 2024.

現在請翻到投影片 15，了解我們對 2024 財年展望的最新情況。

We are revising our full-year guidance to reflect the slower demand and challenges within certain end markets and the broader macroeconomic conditions, which we discussed earlier today.

我們正在修訂全年指引，以反映某些終端市場需求放緩和挑戰以及我們今天早些時候討論過的更廣泛的宏觀經濟狀況。

Our new guidance ranges are: net sales growth of 5% to 10%, net income per diluted share in the range of $0.76 to $0.91, adjusted earnings per diluted share in the range of $1.05 to $1.20, capital expenditures in the range of $30 million to $35 million, effective tax rate to approximately 26%.

我們的新指引範圍是：淨銷售額成長5% 至10%，稀釋每股淨利在0.76 美元至0.91 美元範圍內，調整後每股攤薄收益在1.05 美元至1.20 美元範圍內，資本支出在3000萬美元範圍內至 3,500 萬美元，有效稅率約 26%。

Turning to slide 16.

轉到投影片 16。

I want to highlight some of the near-term growth opportunities that we foresee during the second half of the year, that we are quite excited about.

我想強調我們預計在今年下半年出現的一些近期成長機會，我們對此感到非常興奮。

Signature Systems will continue to benefit from long-term infrastructure improvement projects.

Signature Systems 將繼續受益於長期基礎設施改善項目。

To meet this increased demand, we are ramping up our production capacity.

為了滿足不斷增長的需求，我們正在提高產能。

Additionally, we have recently launched the new -- the exciting new diamond track product, which is a product that removes tire sediment and mud on-site and construction -- and infrastructure projects.

此外，我們最近還推出了令人興奮的新鑽石軌道產品，該產品可以清除現場和施工及基礎設施項目中的輪胎沉積物和泥土。

The Diamond track allows this removal in a more economical and efficient manner versus traditional gravel.

與傳統的礫石相比，鑽石履帶可以以更經濟、更有效率的方式清除。

This is another example of Myers' ability to convert markets from traditional materials to reusable composites that are more economical and environmentally friendly.

這是邁爾斯將市場從傳統材料轉變為更經濟、更環保的可重複使用複合材料能力的另一個例子。

On slide 17, Scepter also appears poised for growth, with increasing sales of military products.

在投影片 17 上，隨著軍用產品銷售的增加，Sceptre 似乎也準備好成長。

Our military products serve as lightweight alternatives to most existing ammo casings.

我們的軍用產品可作為大多數現有彈藥外殼的輕量替代品。

And we have successfully aligned our operational capabilities to realize this opportunity.

我們已經成功地調整了我們的營運能力來實現這一機會。

We are pleased that these Scepter products meet virtually -- meet all virtual qualifications or vital qualifications, including NATO and the US Department of Defense.

我們很高興這些 Sceptre 產品透過虛擬方式滿足 - 滿足所有虛擬資格或重要資格，包括北約和美國國防部。

And we secured recent contract wins in the United States.

我們最近在美國贏得了合約。

And we are also engaged in award processes for additional potential contract wins in Europe.

我們也參與了在歐洲贏得更多潛在合約的授予流程。

We are estimating that the Scepter military business will grow to approximately $40 million in revenue for 2025 compared to only $10 million of military revenue in 2023.

我們預計 Sceptre 軍事業務的收入到 2025 年將成長至約 4,000 萬美元，而 2023 年的軍事收入僅為 1,000 萬美元。

Lastly, and just to note on the status of the current storm season, as questions start to come up at this time of the year, particularly given the recent Hurricane Beryl, we are seeing an uptick in our 5-gallon gas can sales from an early start to the hurricane season, which resulted in significant power outages in Houston in July.

最後，要注意當前風暴季節的狀況，隨著每年這個時候開始出現問題，特別是考慮到最近的颶風貝裡爾，我們看到我們的 5 加侖汽油罐銷量有所上升颶風季節提前到來，導致7月休士頓出現嚴重停電。

We will continue to monitor the potential impacts from what is expected to be a strong storm season this year.

我們將繼續監測今年預計將出現的強風暴季節的潛在影響。

Now I will turn the call back to Mike for some closing comments.

現在我將把電話轉回給麥克，徵求一些結束語。

Thanks, Grant.

謝謝，格蘭特。

Please turn to slide 18.

請翻到幻燈片 18。

As I conclude my remarks, I'd like to reinforce how we are moving forward in Horizon 2 of our strategy.

在結束發言時，我想強調我們在策略第二階段的進展。

First, throughout the quarter, we took action to improve cost and efficiency to maximize value in the engineered solutions and automotive aftermarket portfolios.

首先，在整個季度中，我們採取了行動來提高成本和效率，以最大限度地提高工程解決方案和汽車售後市場產品組合的價值。

I outlined approximately $5 million of annual cost reductions that will impact our results in 2025 and beyond.

我概述了每年約 500 萬美元的成本削減，這將影響我們 2025 年及以後的表現。

This is a component of the $9 million of total annual cost reductions highlighted by Grant in his talk.

這是格蘭特在演講中強調的 900 萬美元年度總成本削減計劃的一部分。

Second, we are growing the branded products in the storage, handling, and protection portfolio.

其次，我們正在發展儲存、搬運和保護產品組合中的品牌產品。

We have highlighted growth projects, all largely plays where our sustainable plastic products replace another material.

我們強調了成長項目，這些項目主要是用我們的永續塑膠產品取代另一種材料。

This is being driven across all four of our power brands: Buckhorn, Akro-Mils, Scepter, and Signature Systems.

我們所有四個電源品牌都在推動這一目標：Buckhorn、Akro-Mils、Scepter 和 Signature Systems。

Third, our continued work to institutionalize our commercial excellence and operational excellence gains from Horizon 1 continues to provide benefit in terms of our EBITDA margin and dollars.

第三，我們持續努力將我們從地平線 1 中獲得的卓越商業和卓越營運收益制度化，繼續為我們的 EBITDA 利潤率和美元帶來好處。

As a reminder, we are making these gains permanent through the establishment of our Myers business system I've discussed in prior calls.

提醒一下，我們正在透過建立我在之前的電話中討論過的邁爾斯業務系統來使這些收益永久化。

And last, we continue to position the company so that it can capitalize on long-term growth trends.

最後，我們繼續對公司進行定位，使其能夠利用長期成長趨勢。

Two good examples are Scepter's growth runway in military applications and Signature's growth runway in infrastructure.

兩個很好的例子是 Scepter 在軍事應用領域的成長跑道和 Signature 在基礎設施領域的成長跑道。

We anticipate that these long-term trends will help drive the company's growth over the next several years.

我們預計這些長期趨勢將有助於推動公司未來幾年的成長。

With that, I'd like to turn the call over to the operator for questions.

這樣，我想將電話轉給接線員詢問問題。

(Operator Instructions) Jacob Moore, KeyCorp.

（操作員說明）Jacob Moore，KeyCorp。

Good morning.

早安.

This is Jacob Moore, filling in for Christian today.

我是雅各·摩爾，今天代替克里斯蒂安發言。

Thanks for taking the questions.

感謝您提出問題。

Thank you, Jacob.

謝謝你，雅各。

First one for me, I'd like to ask about the sustainability of material handling margins following the Signature deal.

我的第一個問題是，我想問簽署協議後物料搬運利潤的可持續性。

Should we think that this quarter is a normalized level for the segment, given the mixed bag of Signature relative to ongoing pressures in your core material handling markets?

鑑於 Signature 相對於核心物料搬運市場的持續壓力，我們是否應該認為本季是該細分市場的正常水平？

Or was there some variable mix benefit in 2Q?

或者第二季是否有一些可變的組合效益？

Yeah.

是的。

Thanks, Jacob.

謝謝，雅各。

We did have -- we certainly had some improvement in the margin from the Signature Systems acquisition.

收購 Signature Systems 後，我們的利潤率確實有所提升。

So that was something that we look at as a very positive thing for the business and really gets to the hydraulics of why we thought that this was such a good acquisition for Myers, as it really effectively starts to create the value that our four power brands can contribute.

因此，我們認為這對業務來說是一件非常積極的事情，並且真正了解了為什麼我們認為這對邁爾斯來說是一次很好的收購，因為它真正有效地開始創造我們的四個動力品牌的價值可以做出貢獻。

So I would say, in general, we continue to see strong margins.

所以我想說，總的來說，我們繼續看到強勁的利潤率。

As a normalized basis, we will have some ups and downs with mix.

作為正常化的基礎，我們的混合會有一些起伏。

We did have some favorable mix this quarter.

本季我們確實有一些有利的組合。

But also, we had some offset with some pricing and volume, which impacted the margins as well.

而且，我們在定價和銷售方面也有一些抵消，這也影響了利潤率。

And so I would say, the way we see it -- and we're probably a little bit more conservative on this -- we would see some slight decline in gross margin in the second half of the year is what we're projecting.

所以我想說，我們的看法 - 我們可能對此更加保守 - 我們預計下半年毛利率會略有下降。

But that's really driven by just, in general, what I would say, some conservativeness that I think we've taken as we started to look at some of these trends in the -- some of these key end markets that seem to be creating some headwinds for us right now.

但這實際上是由我想說的，總體而言，我認為我們在開始研究一些關鍵終端市場的趨勢時所採取的一些保守態度所驅動的——其中一些關鍵終端市場似乎正在創造一些新的趨勢。

Yeah.

是的。

Jacob, just appreciate that question.

雅各布，請欣賞這個問題。

If you -- on that slide 10, where we break out the results by segment, and you have material handling going from 21% basically up to 25%.

如果您 - 在投影片 10 上，我們會按部分細分結果，並且您的物料搬運率從 21% 基本上上升到 25%。

That should be a good metric.

這應該是一個很好的衡量標準。

We believe the storage, handling, and protection portfolio was, we've talked about, 80% of the profit runway of the company.

我們相信儲存、處理和保護產品組合占公司利潤的 80%。

Those are all differentiated brands, leading brands.

這些都是差異化品牌、領導品牌。

There's good competitive moats.

有很好的競爭護城河。

There's good growth runway.

有良好的增長跑道。

And so directionally, I think that your question was a good one.

所以從方向上來說，我認為你的問題是一個很好的問題。

And directionally, the quality of the business should sustain there.

從方向上看，業務品質應該維持在那裡。

Remember, also, in the material handling piece, you've got the engineered solutions business, which is largely a contract manufacturing business that has EBITDA margins, as we've discussed before, 10%, 12%.

還要記住，在物料搬運領域，您擁有工程解決方案業務，這主要是一項合約製造業務，其 EBITDA 利潤率如我們之前討論的，為 10%、12%。

So it dilutes it a bit.

所以它會稀釋一點。

But really, that's why we are focused on driving the storage, handling, and protection portfolio is the quality of the margins.

但事實上，這就是為什麼我們專注於推動儲存、處理和保護產品組合的利潤品質。

And again, I think that that should be noted going forward as where our water marks will be.

再說一次，我認為應該注意這一點，因為我們的水印將在哪裡。

Understood.

明白了。

Thank you for that.

謝謝你。

That's good color.

這顏色真好啊

And I think it leads well into my next one, which is the same question, but distribution.

我認為這很好地引出了我的下一個問題，這是同樣的問題，但是分配問題。

Can you provide any latest thoughts on that segment and what you're seeing in that business?

您能否提供有關該細分市場的最新想法以及您在該業務中看到的情況？

Are mid-single-digit percent margins in distribution sustainable, given the volatility we've seen in the past few quarters?

考慮到過去幾季我們看到的波動性，中個位數的分銷利潤率是否可持續？

Yeah.

是的。

So we reported in that distribution segment of 7% EBITDA margin.

因此，我們報告該分銷部門的 EBITDA 利潤率為 7%。

As we've discussed before, we have had aspirations for higher margins in that business, either high single digits or even low double digits.

正如我們之前討論的，我們渴望在該業務中獲得更高的利潤，要么是高個位數，要么是低兩位數。

What we found over the last couple of quarters is the retail tire business and the resulting tire supply business, which is where we are, is off directionally 10% year over year.

我們在過去幾個季度發現，零售輪胎業務和由此產生的輪胎供應業務（這就是我們所處的位置）比去年同期下降了 10%。

When that happens, you lose some operating leverage, and so you're going to unwind a few hundred basis points on your EBITDA delivery versus your expectations.

當這種情況發生時，您會失去一些營運槓桿，因此您的 EBITDA 交付量將比您的預期減少數百個基點。

That 7%, give or take, is directionally a good number going forward.

無論是多少，這 7% 對於未來來說都是一個不錯的數字。

And again, like I said, you've got in that space tire repair, right now, anything that's impacted by high interest rates, demand that's impacted by high interest rates or demand that's impacted by inflation.

再說一次，就像我說的，現在，你已經在太空輪胎修復中得到了任何受高利率影響的東西，受高利率影響的需求或受通貨膨脹影響的需求。

And so right now, your consumer is not buying tires at the same replacement rate as we would have expected or hoped a year ago.

因此，現在，您的消費者購買輪胎的更換率並不像我們一年前預期或希望的那樣。

As a result, the wheel weights, tire valves, tire pressure sensors that we sell are also down.

因此，我們銷售的車輪重量、輪胎氣門嘴、輪胎壓力感知器也下降了。

And so what you see in that 7% is just an unwinding of operating leverage when your revenues are off 15% year over year, which is the case with that Myers Tire Supply business.

因此，當您的收入同比下降 15% 時，您看到的 7% 只是營運槓桿的放鬆，邁爾斯輪胎供應業務就是這種情況。

So we're trying to combat it by streamlining.

因此，我們正在嘗試透過精簡來應對這個問題。

We talked about the ERP work we've done over the last six to nine months because we've got -- on the same ERP system, we were actually able to reduce three distribution centers going from eight down to five.

我們討論了過去六到九個月裡我們所做的 ERP 工作，因為我們在同一個 ERP 系統上實際上能夠將三個配送中心從八個減少到五個。

That simplifies the business.

這簡化了業務。

It allows us to take cost out.

它使我們能夠降低成本。

And ultimately, we think that will be reflected in the margins.

最終，我們認為這將反映在利潤率上。

But 7%, Jacob, is probably a fair number going forward.

但雅各布，7% 可能是個相當不錯的數字。

Grant, what would you say?

格蘭特，你會說什麼？

Yeah, I would say so.

是的，我會這麼說。

I think the other important part of these consolidation and distribution centers, it really is more of an efficiency play as well, too.

我認為這些整合和配送中心的另一個重要部分，它實際上也更注重效率。

Because we don't see a significant deterioration in terms of any service quality levels or anything else like that; so on-time delivery.

因為我們沒有看到任何服務品質水準或其他類似情況顯著惡化；所以準時交貨。

We'll continue to perform well to the standards that Myers has set in the past.

我們將繼續按照邁爾斯過去設定的標準表現良好。

But I do think that we -- as Mike said, we were thinking that this business might be able to improve the overall margin.

但我確實認為，正如麥克所說，我們認為這項業務可能能夠提高整體利潤率。

We just see with some of the headwinds right now that that's probably not likely.

我們現在看到一些不利因素，這可能不太可能。

And so I do think that that range of 7% margin is a pretty good one for the future, looking out the next couple of quarters.

因此，我確實認為 7% 的利潤率對於未來來說是一個相當不錯的水平，展望未來幾季。

Got it.

知道了。

Thank you.

謝謝。

Just a couple more from me.

我還有幾個。

Can you speak to any productivity gains that you've made in either segment that enabled the footprint consolidation?

您能否談談您在任一細分市場中實現足跡整合所取得的生產力提升？

And then maybe a related question to that is, with the defense business ramping, do you have available capacity?

也許與此相關的一個問題是，隨著國防業務的成長，您是否有可用的產能？

Should we see an accelerated ramp in orders from the new Scepter products?

我們是否應該看到新 Sceptre 產品的訂單加速成長？

Yeah.

是的。

So hey, Jacob.

所以嘿，雅各。

This is something I've talked about since I've arrived and been here for the last 4, 4.5 years, is all this operational excellence.

這是我自從來到這裡並在這裡待了 4 年、4.5 年以來一直在談論的事情，就是所有這些卓越的運營。

I talked about the sales and operations planning processes that we brought in, the sales and operations planning software and systems, and then all the personnel we brought in from some of these large-cap companies that really help us schedule our plants better, operate our plants better.

我談到了我們引進的銷售和營運規劃流程、銷售和營運規劃軟體和系統，以及我們從一些大型公司引進的所有人員，他們確實幫助我們更好地安排我們的工廠，運作我們的工廠。好。

And as a result -- I talked about the hidden factor.

結果——我談到了隱藏的因素。

We actually are unleashing and finding 20%, 30% more capacity out of a given machine.

實際上，我們正​​在釋放並發現給定機器的容量增加了 20%、30%。

And as a result of that, it allows us to take our assets out, streamline our footprint, streamline the company, make the company simpler, while we can continue to have the runway and volume to satisfy the market demand.

因此，它使我們能夠拿出我們的資產，精簡我們的足跡，精簡公司，使公司更簡單，同時我們可以繼續擁有跑道和數量來滿足市場需求。

So it's -- what you're seeing in these consolidations is a proof point of all the S&OP and operational excellence work we've been doing in 2021, 2022, 2023.

所以，您在這些整合中看到的內容證明了我們在 2021 年、2022 年、2023 年所做的所有 S&OP 和卓越營運工作。

As it relates to the military, same story there.

因為它與軍事有關，所以也有同樣的故事。

We actually have added some capacity.

我們實際上增加了一些容量。

But we are able to get more units out of each machine based upon how we schedule it, how we operate it.

但我們能夠根據我們如何調度它、如何操作它從每台機器中獲得更多的單元。

And ultimately, our OEE is higher, and the output of each plant is higher.

最終，我們的 OEE 更高，每個工廠的產量也更高。

And so we're able to do more with less.

因此我們能夠用更少的資源做更多的事情。

And so that's actually going to continue to bear fruit over the coming quarters and years.

因此，這實際上將在未來幾個季度和幾年內繼續取得成果。

So Grant?

那麼格蘭特？

Yeah.

是的。

I just would add to that some additional color.

我只是想添加一些額外的顏色。

I mean, I come from a pretty strong operations background.

我的意思是，我有很強的營運背景。

And it's been really impressive what the team has been able to do on just increasing the throughput of equipment and manufacturing processes.

該團隊在提高設備和製造流程的吞吐量方面所取得的成就確實令人印象深刻。

The other thing, Jacob, that we want to be careful about is that we still maintain capacity because we are in the trough position.

雅各布，我們要小心的另一件事是我們仍然保持產能，因為我們處於低谷位置。

And so our thought process is that as markets might pick up again in the future in some of these end markets, that we have the ability with adding some additional shifts and things of that nature to really maintain and meet that -- those demand requirements as well, too.

因此，我們的思考過程是，隨著未來某些終端市場的市場可能再次回暖，我們有能力增加一些額外的轉變和類似性質的事情，以真正維持和滿足這些需求要求嗯，也是。

So I think it's a good balance of efficiency improvements, allowing the consolidation, while still maintaining capacity for future opportunities when the peaks happen in the future.

因此，我認為這是效率提高的一個很好的平衡，允許整合，同時在未來高峰發生時仍然保持未來機會的能力。

So

所以

--

--

Thank you.

謝謝。

That's helpful.

這很有幫助。

I think doing more with less is a common theme in the military.

我認為少花錢多辦事是軍隊的共同主題。

So you're on the right track there.

所以你走在正確的軌道上。

Last one from me.

我的最後一張。

I'd like to ask about the capacity additions in Signature specifically.

我想具體詢問一下Signature中的容量增加情況。

When do you think those additions will be fully operational?

您認為這些新增功能什麼時候才能完全投入使用？

And how soon should we expect to see an associated revenue ramp as a result?

我們預計多久才能看到相關的收入成長？

Yeah.

是的。

So again, Jacob, I'll tell you what I can tell you, recognizing that it is confidential information.

雅各布，我再說一遍，我會告訴你我能告訴你的，因為這是機密資訊。

So we've announced a capacity addition in 2024.

因此，我們宣佈在 2024 年增加產能。

We have an additional capacity addition that will come on in 2025.

我們將於 2025 年增加額外產能。

The directional goal for this business when we acquired it -- and Jeff Condino who is the CEO of this business and his team -- their directional goal is to double the business, double the business in terms of revenue and EBITDA over the next nominally three or four years.

當我們收購該業務時，該業務的方向性目標以及該業務的首席執行官Jeff Condino 及其團隊的方向性目標是在接下來的名義上三年內將業務翻一番，將收入和EBITDA 方面的業務翻倍或四年。

I believe things are set up to do that, and I believe that these two capacity additions will allow that to happen.

我相信一切都是為了做到這一點而設定的，我相信這兩項容量的增加將使這一點得以實現。

So good business, good growth trends.

如此好的生意，良好的成長趨勢。

One machine has been added this year.

今年新增一台機器。

There's another one coming online that will be in place for 2025.

另一項計劃將於 2025 年上線。

I would just say we've -- when we acquired Signature, we said we expected that business to grow at least 10% annually, and I think we're on a good path for that.

我只想說，當我們收購 Signature 時，我們表示預計該業務每年至少會成長 10%，而且我認為我們正走在一條良好的道路上。

In general -- and it's very similar to the question you asked about military -- we like to ramp up our capacity as the demand is there.

總的來說，這與您提出的有關軍事的問題非常相似，我們希望隨著需求的增加而提高我們的能力。

And so there is some timing element of this, but we certainly have opportunities to meet the objectives that Mike outlined.

因此，這其中存在一些時間因素，但我們當然有機會實現麥克概述的目標。

So

所以

--

--

All right.

好的。

Thank you, gentlemen.

謝謝你們，先生們。

It's been good color, and thanks for taking our questions.

顏色很好，感謝您提出我們的問題。

Thank you.

謝謝。

Thanks, Jacob.

謝謝，雅各。

Anna C. Jolly, Gabelli & Company.

安娜‧喬利 (Anna C. Jolly)，Gabelli & Company。

Hi, thanks for taking the question.

您好，感謝您提出問題。

It's Carolina from Gabelli.

我是加貝利的卡羅萊納。

So just to start -- to end with the last question, Signature, can you just give an update on how you feel the integration is going to date?

首先，以最後一個問題結束，簽名，您能否介紹一下您對迄今為止集成的最新感受？

Yeah, Carolina.

是的，卡羅萊納。

It's going well.

進展順利。

On the soft side, the qualitative side, the cultures are meshing well.

在軟性方面、品質方面，兩種文化融合得很好。

We really like the quality of the Signature team.

我們非常喜歡 Signature 團隊的品質。

And actually, it's been a nice add.

事實上，這是一個很好的補充。

The talent in the Signature team, I believe, will be additive to the rest of Myers.

我相信，Signature 團隊的人才將為邁爾斯的其他成員帶來補充。

So that's win.

這樣就贏了。

On the quantitative piece, the financials and the delivery are coming through as we had anticipated.

在數量方面，財務狀況和交付情況正如我們預期的那樣。

The integration itself, the cost-out initiatives are, again, on track, as Grant had mentioned, so that we have $8 million of synergies in 2025.

正如格蘭特所提到的，整合本身、成本削減計劃再次步入正軌，因此我們在 2025 年將獲得 800 萬美元的協同效應。

That number still holds.

這個數字仍然有效。

And so overall, Carolina, we're quite pleased with the acquisition, its performance, qualitative and quantitative.

總的來說，卡羅萊納州，我們對此次收購及其性能、品質和數量感到非常滿意。

Grant, anything to add?

格蘭特，有什麼要補充的嗎？

I think it's going really well.

我認為一切進展順利。

The team is a strong team.

該團隊是一支強大的團隊。

We've been able to supplement on both sides where we've had some good learnings on some of the operational processes to implement some performance improvements at Signature.

我們已經能夠在雙方方面進行補充，我們在一些操作流程上學到了一些很好的知識，以在 Signature 上實施一些性能改進。

But also, Signature had some areas where they've had some excellent -- centers-of-excellence-type of ideas that we've been able to implement in some of our other manufacturing processes.

而且，Signature 在某些領域擁有一些出色的卓越中心類型的想法，我們已經能夠在其他一些製造流程中實施這些想法。

So it's been a good opportunity to just share knowledge and really drive some of the synergies that we had identified we felt we could achieve with the acquisition.

因此，這是一個很好的機會，可以分享知識，並真正推動我們認為可以透過收購實現的一些協同效應。

Perfect.

完美的。

Thanks.

謝謝。

And then, Grant, on -- can you just help me better understand, on page 13, the difference in cash flow conversion year over year?

然後，格蘭特，您能否幫助我更好地理解第 13 頁現金流量轉換的逐年差異？

Okay.

好的。

In terms of cash flow conversion, we actually -- we see ourselves at essentially a 60% cash flow conversion business continuing.

在現金流轉換方面，我們實際上認為我們的現金流量轉換業務基本上將持續 60%。

We have -- that's been, historically, where we've been at.

從歷史上看，我們一直處於這樣的境地。

We don't show a specific cash flow conversion chart in our earnings presentation.

我們在收益報告中沒有顯示具體的現金流量換算表。

But it is a good cash flow conversion business.

但這是一個很好的現金流轉換業務。

And so we do think that that may continue to improve as we get some of these improvements in place with some of the costs and things of that nature.

因此，我們確實認為，隨著我們在一些成本和類似性質的事情上取得一些改進，情況可能會繼續改善。

But overall, we see that with the Signature acquisition, we have -- you can see that the percent of working capital has gone up.

但總體而言，我們看到，透過收購 Signature，您可以看到營運資金的百分比上升。

But that's really driven by, as we said in the comments, where we don't yet have the full 12 months of sales with Signature.

但這實際上是由我們在評論中所說的推動的，我們還沒有獲得 Signature 的完整 12 個月的銷售情況。

So we think that that will start to normalize over time.

因此，我們認為隨著時間的推移，這種情況將開始正常化。

Additionally, Signature does bring on a little bit more inventory than what we have in some of our other operations, but their cash conversion is really quite good.

此外，Signature 確實比我們其他一些業務的庫存多一點，但他們的現金轉換確實相當不錯。

So we think that essentially offsets that.

所以我們認為這基本上抵消了這一點。

And so we should, over time, I think, [Angelina] continue to -- or Carolina -- continue to move forward with what we see traditionally on our cash conversion for Myers.

因此，我認為，隨著時間的推移，我們應該（安潔莉娜）繼續——或者卡羅萊納——繼續推進我們傳統上對邁爾斯現金轉換的看法。

Great.

偉大的。

Perfect.

完美的。

And then last question, just specific to the distribution segment, it seems as if some of the overall industry or market commentary has just -- around cadence has been positive, potentially sequentially improving in June and July.

最後一個問題，僅針對分銷領域，似乎整個行業或市場的一些評論一直是積極的，可能會在 6 月和 7 月連續改善。

Do you have any thoughts on cadence for that segment?

您對該部分的節奏有什麼想法嗎？

Carolina, we're seeing the sales come back.

卡羅萊納州，我們看到銷量回升。

So remember, we had a -- we made a strategic move to reorient the sales force, and we did that in the back half of last year.

所以請記住，我們採取了一項策略性舉措來重新定位銷售隊伍，我們在去年下半年就這樣做了。

We took our sales personnel and we focused them on in-market, retail separate from commercial, separate from retread, et cetera.

我們把銷售人員集中在市場上，零售與商業分開，與翻新分開，等等。

That change and conducting that change with 100-plus sales reps, it did not deliver the gains as fast as I would have expected.

這項變革以及與 100 多名銷售代表一起進行的變革，並沒有像我預期的那樣快速帶來收益。

And in fact, in some instances, it took us a little bit backwards.

事實上，在某些情況下，我們有點倒退了。

Longer term, I think those are -- the right call is to have focused sales organization based on end market.

從長遠來看，我認為正確的做法是建立一個基於終端市場的集中銷售組織。

The market was also down 8% to 10% in our space of wheel weight, tire valves, tire pressure sensors.

我們的車輪重量、輪胎氣門嘴、輪胎壓力感知器領域的市場也下降了 8% 到 10%。

We also, Carolina, in the midst of changing out the sales force, we raised price and tested our value proposition, probably got a little aggressive on price.

卡羅萊納州，在更換銷售人員的過程中，我們提高了價格並測試了我們的價值主張，可能在價格上有點激進。

What we're doing now is we're going back and addressing all of that.

我們現在要做的就是回頭解決所有這些問題。

We're gaining back business, sometimes, at a lower price.

有時，我們會以更低的價格重新贏得業務。

Our salespeople are now getting more traction.

我們的銷售人員現在越來越受關注。

And ultimately, I don't see that in-market itself recovering until 2025.

最終，我認為市場本身要到 2025 年才會復甦。

That's part of why we changed our guidance.

這就是我們改變指導的部分原因。

But I also see that Myers Tire Supply, it has a great brand.

但我也看到邁爾斯輪胎供應公司，它有一個很棒的品牌。

It's got a great brand and a great ability of service.

它有一個偉大的品牌和強大的服務能力。

What we're seeing is we're coming back and gaining share, and I expect that to happen over the next year.

我們看到的是我們正在回歸並獲得份額，我預計這將在明年發生。

So that's -- hopefully, that answers your question.

希望這能回答你的問題。

Great, yeah.

太棒了，是的。

Thanks so much.

非常感謝。

Thank you.

謝謝。

Thanks, Carolina.

謝謝，卡羅萊納。

Thanks, Carolina.

謝謝，卡羅萊納。

William Dezellem, Tieton Capital Management.

威廉‧德澤勒姆，蒂頓資本管理公司。

Thank you.

謝謝。

Two questions.

兩個問題。

First of all, relative to the military ammunition carrier business, do you see that ramp in the -- going from $10 million to $25 million to $40 million, capping in rather evenly over the quarters of this year and next year?

首先，相對於軍火運輸業務，您是否看到從 1000 萬美元到 2500 萬美元再到 4000 萬美元的增長，今年和明年季度的上限相當均勻？

Or does it end up being pretty lumpy depending on how order shipments go?

或者根據訂單發貨情況，它最終會變得相當不穩定嗎？

Walk us through the dynamics of that revenue ramp, if you would, please?

如果您願意的話，請向我們介紹一下收入成長的動態？

Yeah, Bill, good to hear from you.

是的，比爾，很高興收到你的來信。

So on that business, what we've seen is that the contracts that we get approved for, common chunks of $10 million to $15 million chunks.

因此，就該業務而言，我們所看到的是我們獲得批准的合同，常見金額為 1000 萬至 1500 萬美元。

And what's changed since 2023 is we now have three of those chunks, if I'll call them that.

自 2023 年以來發生的變化是，我們現在擁有其中三個區塊（如果我這樣稱呼它們的話）。

And so the revenue numbers of $25 million this year and directionally $40 million next year, I feel good about those numbers.

因此，今年的收入為 2500 萬美元，明年的收入為 4000 萬美元，我對這些數字感到滿意。

The lumpiness, Bill, is when a contract is approved, and we actually go to production.

比爾，最困難的是合約獲得批准，我們實際上開始生產。

With aerospace or with military, these things just always take longer than you expect.

無論是航空航天還是軍事，這些事情總是比你預期的要花更長的時間。

And so the ramp of those can be a little bit lumpy.

所以這些的斜坡可能有點不穩定。

Once that contract is in place, once we're producing the product, we're running 24/7.

一旦合約到位，一旦我們開始生產產品，我們就會 24/7 運行。

And once each contract is approved, then it's pretty even.

一旦每份合約獲得批准，情況就相當平等了。

Directionally, the military sales -- so there's a tremendous amount of restocking worldwide because of these conflicts.

從方向上來說，是軍售——因此，由於這些衝突，全球範圍內有大量的補貨。

And I think that over the next 5 to 10 years, this business is going to be a good growth tailwind for Myers.

我認為在未來 5 到 10 年裡，這項業務將成為邁爾斯的良好成長動力。

Is $40 million the end?

4000萬美元就結束了嗎？

I don't believe it is.

我不相信是這樣。

I don't know exactly what the end could be.

我不知道具體的結局會是什麼。

I know there's a lot of good growth runway.

我知道有很多良好的增長跑道。

But the start-up, Bill, will be a little lumpy.

但比爾這家新創公司會有點不穩定。

As we mentioned in the first quarter, we actually -- there was a bit of delay on getting some labeling approved and getting some packaging approved.

正如我們在第一季提到的，實際上，在獲得一些標籤批准和一些包裝批准方面存在一些延遲。

Now that's been resolved, and that production line is going 24/7.

現在這個問題已經解決了，該生產線將全天候 (24/7) 運行。

And we're seeing the results of it.

我們正在看到它的結果。

So I'd say on the start-up, Bill, a little bit lumpy.

所以我想說，比爾，對於新創公司來說，有點不穩定。

But directionally, if you look at this over the next 3, 5, 7, 10 years, the trajectory that Grant had in his slide is correct.

但從方向來看，如果你看看未來 3 年、5 年、7 年、10 年，格蘭特在幻燈片中的軌跡是正確的。

That's very helpful.

這非常有幫助。

Thank you.

謝謝。

And you said you now have three contracts.

你說你現在有三份合約。

And I think in the opening remarks, there was a reference to additional contracts that you thought were possible.

我認為在開場白中，提到了您認為可能的額外合約。

Could you talk to those and how significant they could be?

您能談談這些人以及他們的重要性嗎？

Yeah, directionally, the same bucket, as I said, $10 million to $15 million top line per contract.

是的，從方向上看，正如我所說，每份合約的頂線為 1000 萬至 1500 萬美元。

I can't, Bill, get too much in the specifics because we're dealing with specific countries and their militaries and their sourcing.

比爾，我不能透露太多細節，因為我們正在與特定國家及其軍隊及其採購打交道。

But you would stand to believe that some of this is in Europe, some of the countries that have publicly said they're restocking their artilleries, some of those that are a little bit more concerned about some of the instability and potential conflict there.

但你會相信其中一些是在歐洲，一些國家公開表示他們正在補充火砲，其中一些國家更擔心那裡的一些不穩定和潛在衝突。

So again, we've got good positions in Eastern Europe as well as in Western Europe.

同樣，我們在東歐和西歐都擁有良好的地位。

And we're negotiating with some of those militaries on this artillery packaging.

我們正在與其中一些軍隊就這種火砲包裝進行談判。

Great.

偉大的。

Thank you.

謝謝。

I appreciate that.

我很欣賞這一點。

And then shifting to Signature, if we could, please.

如果可以的話，請轉向簽名。

Longer term, there is this movement to convert from wood maps to composites.

從長遠來看，存在從木質地圖轉換為複合材料的趨勢。

Did you have, in the quarter or this year, any meaningful or material tangible evidence of that shift or transition taking place?

在本季或今年，您是否有任何有意義或實質的證據表明這種轉變或過渡正在發生？

Or is this literally just one small piece of business at a time?

或者這實際上只是一次一小部分業務？

Directionally -- so remember -- let's say, 80% to 90% of the installed base is a wood product. 10% to 15% is a composite product in the US.

從方向上來說，請記住，80% 到 90% 的安裝基礎是木製品。 10%到15%在美國是複合產品。

In Western Europe, the installed base is that aluminum product.

在西歐，安裝基礎是鋁產品。

To the same extent, 80%, 90% and then 10% or 20% is a composite product.

同樣的程度，80%、90%、然後10%、20%都是複合產品。

It's very similar to what we see with our Buckhorn product and even, quite frankly, similar to what we see with our Akro-Mils product, is over the course of several years or really even decades, the plastic composite, particularly if it's sustainable and recyclable, continues to gain share from the primary substrate, which, again, is cardboard in the case of Buckhorn in Akro-Mils, and it's wood in the case of Signature.

這與我們在Buckhorn 產品中看到的情況非常相似，甚至坦率地說，與我們在Akro-Mils 產品中看到的情況類似，塑料複合材料在幾年甚至幾十年的過程中，特別是如果它是可持續的和可回收利用，繼續從主要基材中獲得份額，在 Akro-Mils 的 Buckhorn 中，主要基材是紙板，而 Signature 的基材是木材。

The drive and the conversions that we're having and the growth there over the last five years at Signature and what we're forecasting for the next five years is, yes, you've got $1 trillion of infrastructure spending through the two acts that Grant cited in this slide.

Signature 過去五年的動力和轉換以及成長以及我們對未來五年的預測是，是的，透過這兩項舉措，您將獲得 1 兆美元的基礎設施支出這張幻燈片中引用了格蘭特。

That's a big lift.

這是一個很大的提升。

The other piece is just the conversion.

另一部分只是轉換。

And again, if you can move your conversion of composites from 10% to 15% or 20%, you're basically doubling the available market.

再說一遍，如果您可以將複合材料的轉換率從 10% 提高到 15% 或 20%，那麼您基本上可以將可用市場翻倍。

On the tip of my tongue, I don't specifically know those numbers.

在我的舌尖上，我並不具體知道這些數字。

I'd have to go back and relook at what we disclosed at Investor Day.

我必須回去重新審視我們在投資者日披露的內容。

But that is the part of the Investor Day materials under Jeff Condino's presentation for anyone to reference.

但這是傑夫康迪諾演講中投資者日材料的一部分，供任何人參考。

Great.

偉大的。

Thank you.

謝謝。

And Mike, I'm actually going to take off on one of your comments relative to Akro-Mils and replacing cardboard with the composite.

麥克，我實際上要採納您關於 Akro-Mils 的評論之一，並用複合材料代替紙板。

What proportion of that business is cardboard or that industry is cardboard?

紙板業務佔該業務或紙板產業的比例是多少？

So just really trying to get my mind wrapped around how far along in the transition from cardboard to composites those bins are.

因此，我真的想弄清楚這些垃圾箱從紙板到複合材料的轉變還有多遠。

Yeah.

是的。

The way I'd look at it is we've consistently talked about Akro-Mils being a GDP business, GDP-plus business.

我的看法是，我們一直在談論 Akro-Mils 是一家 GDP 企業，GDP+ 企業。

The bigger driver there would be in Buckhorn and Signature.

更大的驅動器將是 Buckhorn 和 Signature。

On Akro-Mils itself, if you think about the compound bins and organizational bins in industrial settings, at restaurants, in medical, at nurses stations, as an example, supply stations, I would be over my skis, Bill, if I tried to talk about how much is cardboard versus plastic.

就 Akro-Mils 本身而言，如果你想想工業環境、餐廳、醫療、護士站（例如供應站）中的複合箱和組織箱，比爾，如果我試著談論紙板與塑膠的價格是多少。

But directionally, the key thing to know is that Akro-Mils -- and there's one other competitor -- Akro-Mils product based upon how we manufacture it and the raw materials we use is a little bit more durable, a little bit more heavy duty, typically priced a little bit higher.

但從方向上來說，要知道的關鍵是 Akro-Mils——還有另一個競爭對手——Akro-Mils 產品基於我們的製造方式和我們使用的原材料，它更耐用一點，更重一點關稅，通常價格稍高一些。

And it does have a brand known for the highest quality.

它確實擁有一個以最高品質聞名的品牌。

The specific conversion rates -- again, GDP to 2x GDP, but it's not going to be a conversion rate of 15% to 10% or 15%, like what we expect with Signature.

具體的轉換率——同樣，GDP 到 2 倍 GDP，但它不會是 15% 到 10% 或 15% 的轉換率，就像我們對 Signature 的預期一樣。

Great.

偉大的。

Thank you for the time.

謝謝你的時間。

Thank you.

謝謝。

Thanks, Bill.

謝謝，比爾。

Thank you.

謝謝。

We currently have no other question.

目前我們沒有其他問題。

(Operator Instructions)

（操作員說明）

Just while we're waiting to see if there's any other questions, Carolina, I had said one item about the cash conversion.

卡羅萊納州，正當我們等待看是否還有其他問題時，我說了一項有關現金轉換的問題。

I had used the term percentage.

我使用了術語“百分比”。

I was actually referring to days.

我實際上指的是幾天。

So we typically have about a 60-day cash conversion cycle when we look at our days sales outstanding plus days on hand, less our days payable outstanding.

因此，當我們查看應付天數加上庫存天數，減去應付帳款天數時，我們通常會有大約 60 天的現金轉換週期。

So just to clarify that.

所以只是為了澄清這一點。

All right.

好的。

Well, thanks, Kenneth.

嗯，謝謝，肯尼斯。

And thank you, all, for joining Myers Industries second-quarter earnings call.

感謝大家參加邁爾斯工業第二季財報電話會議。

We invite you to follow up with additional questions or meeting requests. (inaudible) time, just please contact me, Meghan Beringer, using the information found on slide 26.

我們邀請您跟進其他問題或會議請求。 （聽不清楚）時間到了，請使用幻燈片 26 上的資訊與我聯繫，Meghan Beringer。

Thank you for joining, and have a great day.

感謝您的加入，祝您有美好的一天。

Ladies and gentlemen, this concludes today's call.

女士們、先生們，今天的電話會議到此結束。

Thank you for joining.

感謝您的加入。

You may now disconnect your lines.

現在您可以斷開線路。