Inotiv Inc (NOTV) 2025 Q4 法說會逐字稿

Hello, and welcome, everyone joining today's Inotiv fourth quarter and full year 2025 earnings call. (Operator Instructions) Please note, this call is being recorded. We are standing by if you should need any assistance. And it is now my pleasure to turn the meeting over to Steve Halper of LifeSci Advisors. Please go ahead.

大家好，歡迎各位參加今天的Inotiv 2025年第四季及全年財報電話會議。（操作員指示）請注意，本次通話正在錄音。如果您需要任何協助，我們隨時待命。現在我很高興將會議交給 LifeSci Advisors 的 Steve Halper。請繼續。

Thank you, Claudia, and good afternoon. Thank you for joining today's quarterly call with Inotiv's management team. Before we begin, I'd like to remind everyone that some of the statements that management will make on this call are considered forward-looking statements, including statements about the company's future operating and financial results and plans.

謝謝你，克勞迪婭，下午好。感謝您參加今天與Inotiv管理團隊的季度電話會議。在會議開始之前，我想提醒大家，管理層將在本次電話會議上發表的一些聲明屬於前瞻性聲明，包括有關公司未來經營和財務業績及計劃的聲明。

Such statements are subject to risks and uncertainties that could cause actual performance or achievements to be materially different from those projected. Any such statements represent management's expectations as of today's date.

此類聲明存在風險和不確定性，可能導致實際業績或成就與預期業績或成就有重大差異。任何此類聲明均代表管理層截至今日的預期。

You should not place undue reliance on these forward-looking statements, and the company does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events -- the company does not undertake any obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

您不應過度依賴這些前瞻性陳述，本公司不承擔任何更新或修改前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

Please refer to the company's SEC filings for further guidance on this matter, including risks and uncertainties that could cause results to differ from forward-looking statements. Management will also discuss certain non-GAAP financial measures in an effort to provide additional information for investors. Definitions of these non-GAAP measures and reconciliations to the most comparable GAAP measures are included in the company's earnings release, which has been posted to the Investors section of the company's website www.inotiv.com and is also available in the Form 8-K filed with the Securities and Exchange Commission. If you haven't obtained a copy of today's press release yet, you could do so by going to the Investors section of Inotiv's website.

有關此事的更多指導，請參閱本公司向美國證券交易委員會提交的文件，包括可能導致結果與前瞻性聲明差異的風險和不確定性。管理層還將討論一些非GAAP財務指標，以便為投資者提供更多資訊。這些非GAAP指標的定義以及與最可比較GAAP指標的調節表均包含在公司的盈利報告中，該報告已發佈在公司網站www.inotiv.com的投資者關係部分，也可在提交給美國證券交易委員會的8-K表格中找到。如果您還沒有收到今天的新聞稿，您可以訪問Inotiv網站的投資者關係部分獲取。

Joining us from the company this afternoon are Bob Leasure, President and Chief Executive Officer; and Beth Taylor, Chief Financial Officer. John Sagartz, Chief Strategy Officer, will join us for the question-and-answer portion of the call. Bob will begin with some opening remarks, which -- after which Beth will present a summary of the company's financial results for its fourth quarter and full year fiscal 2025 and then we'll open the call for questions.

今天下午，公司總裁兼執行長鮑勃·萊瑟和財務長貝絲·泰勒將與我們一同出席。首席策略官約翰·薩加茨將參加電話會議的問答環節。鮑伯將首先致開幕詞，之後貝絲將概述公司 2025 財年第四季和全年的財務業績，然後我們將開放提問環節。

It's now my pleasure to turn the call over to Bob Leasure, CEO. Bob, please go ahead.

現在我很高興將電話轉交給執行長鮑伯·萊瑟。鮑勃，請繼續。

All right. Thank you, Steve. Good afternoon, everyone. During the fourth quarter of fiscal 2025, we saw the continuation of some positive trends for our business, including a strong year-over-year increase in demand for our Discovery & Safety Assessment business. We continue to execute on the core goals outlined in our May 2025 Investor Day, including improving our cash flow and margins and maintaining our focus on customer metrics. Two critical elements of our plan consists of improving DSA revenue and margins and continuing our RMS site consolidation efforts in order to further reduce cost.

好的。謝謝你，史蒂夫。大家下午好。在 2025 財年第四季度，我們的業務延續了一些正面的趨勢，包括我們的探索與安全評估業務的需求較去年同期成長強勁。我們將繼續執行我們在 2025 年 5 月投資者日上提出的核心目標，包括改善現金流和利潤率，並繼續專注於客戶指標。我們計劃的兩個關鍵要素是提高 DSA 收入和利潤率，以及繼續推進 RMS 站點整合工作，以進一步降低成本。

On today's call, I'll provide an update on the progress we are making on these objectives along with the other general business updates for the fourth quarter. On that last point, on August 18, we filed an 8-K disclosing that we became aware of a cybersecurity incident which caused disruption to certain of our business operations. We worked to restore availability and access to our networks and systems during this fiscal fourth quarter. We are required to work through a number of challenges that were disruptive to the business, but we continue to execute request for delivery of products and services.

在今天的電話會議上，我將報告我們在實現這些目標方面取得的進展，以及第四季度的其他一般業務進展。關於最後一點，8 月 18 日，我們提交了一份 8-K 表格，披露我們意識到發生了一起網路安全事件，該事件導致我們的某些業務運營中斷。在本財年第四季度，我們努力恢復了網路和系統的可用性和存取權限。我們需要克服許多對業務造成乾擾的挑戰，但我們仍在繼續執行產品和服務的交付請求。

While this incident inevitably had some financial impact on the quarterly results, I'm very proud of how the team responded. And as you can see from the results of the quarter, the company maintained its momentum through this process.

雖然這次事件不可避免地對季度業績造成了一定的財務影響，但我為團隊的應對方式感到非常自豪。從本季業績可以看出，公司在此過程中保持了發展勢頭。

In September, we disclosed that we had engaged Perella Weinberg Partners to provide general financial advisory and investment banking services to assist the company in exploring potential debt refinancing alternatives.

9 月，我們揭露，我們已聘請 Perella Weinberg Partners 提供一般財務諮詢和投資銀行服務，以協助公司探索潛在的債務再融資方案。

And then we later announced that a proposed settlement of our securities class action and an agreement in principle to settle the derivative lawsuits in each case pending court approval and expect that the settlement payments will be fully covered by insurance.

隨後我們宣布，已就證券集體訴訟達成擬議和解，並就每起衍生訴訟達成原則性和解協議，尚待法院批准，預計和解款項將由保險全額支付。

Now moving on to the quarterly results. We continue to see some very encouraging signs. For the fourth quarter of fiscal 2025, total revenue was $138.1 million, an increase of $7.7 million or 5.9% compared to the fourth quarter of fiscal 2024.

接下來來看季度業績。我們持續看到一些非常令人鼓舞的跡象。2025 財年第四季總營收為 1.381 億美元，比 2024 財年第四季增加了 770 萬美元，增幅為 5.9%。

The DSA business was the primary driver of this increase. Sequentially, revenue was up $7.4 million or 5.7%. For fiscal year 2025, total revenue was $513 million, an increase of $22.3 million or 4.5% compared to $490.7 million for fiscal 2024. Some of the key highlights of Q4 2025 included quarter-over-quarter and year-over-year increases in net DSA awards and revenue growth. DSA revenue growth was a goal that we outlined during our Investor Day in May of this year.

DSA業務是這一成長的主要驅動力。營收季增 740 萬美元，成長 5.7%。2025 財年總營收為 5.13 億美元，比 2024 財年的 4.907 億美元增加了 2,230 萬美元，增幅為 4.5%。2025 年第四季的一些主要亮點包括淨 DSA 獎勵和收入成長的季度環比和年度同比增長。DSA 營收成長是我們今年 5 月投資者日上提出的目標。

Compared to the prior year fourth quarter, DSA quarterly revenue increased 15.7% and awards increased approximately 61%. These results were some of the strongest DSA quarterly results we have seen over the last two years. Since our May Investor Day, we have posted increases of 12.4% in DSA revenue and 41.1% in DSA awards for the last 2 fiscal quarters of 2025 as compared to the last two fiscal quarters of 2024.

與上年第四季相比，DSA季度營收成長了15.7%，獎勵成長了約61%。這些結果是我們近兩年來看到的最強勁的DSA季度業績之一。自 5 月投資者日以來，與 2024 年最後兩個財季相比，2025 年最後兩個財季的 DSA 收入增長了 12.4%，DSA 獎勵增長了 41.1%。

In the fourth quarter, Discovery business awards increased 55% over the same period a year ago, and we achieved even stronger growth rates in the new service lines that we started or expanded over the last couple of years, including biotherapeutics, medical devices and genetic toxicology. The DSA backlog conversion rate was 37.4% for the fourth quarter and was the highest quarterly conversion rate we have seen in three years.

第四季度，Discovery 業務獎項比去年同期成長了 55%，我們在過去幾年中啟動或擴展的新服務線（包括生物治療、醫療器材和遺傳毒理學）中實現了更強勁的成長率。第四季 DSA 積壓訂單轉換率為 37.4%，是三年來最高的季度轉換率。

DSA margins also continued to improve. And while we believe there should be further opportunities in the future, we are pleased with the current momentum. RMS revenue for the fourth quarter was slightly ahead of last year by approximately 1% and for the fiscal year 2025 increased 4.7% over fiscal year 2024. Phase 2 of our RMS site consolidation project has remained on track.

DSA利潤率也持續改善。雖然我們相信未來還會有更多機會，但我們對目前的勢頭感到滿意。RMS 第四季營收比去年同期略高約 1%，2025 財年營收比 2024 財年成長 4.7%。我們的RMS網站整合專案第二階段進展順利。

In early October, we closed one of the three planned RMS facilities and now have two additional lease facilities remaining to close. As we stated last quarter, we anticipate future annual savings of $6 million to $7 million on a capital investment related to expanding an existing lease location of approximately $6.5 million.

10月初，我們關閉了三個計劃中的RMS設施中的一個，現在還有兩個租賃設施需要關閉。正如我們上個季度所述，我們預計未來每年可節省 600 萬至 700 萬美元，用於擴建現有租賃地點的資本投資約為 650 萬美元。

To date, we have spent approximately $1.8 million net of tenant allowances related to this capital investment. As with previous projects we have executed in the RMS segment, these additional investments are intended to help modernize our existing footprint while allowing us to close older facilities. The plan will reduce open capacity, should create operating efficiencies while continuing our efforts to support our animal welfare objectives.

截至目前，我們已為此資本投資支出約 180 萬美元（扣除租戶補貼後）。與我們先前在RMS領域執行的專案一樣，這些額外的投資旨在幫助我們實現現有設施的現代化，同時使我們能夠關閉較舊的設施。該計劃將減少空置產能，提高營運效率，同時繼續努力實現我們的動物福利目標。

Additionally, we believe that this plan allows us to remain agile and to increase production capacity in the future as needed. When the site consolidation project is complete, we expect to have closed a total of 13 RMS facilities or approximately 60% of the RMS facilities over the last three years.

此外，我們相信該計劃能夠讓我們保持靈活性，並在未來根據需要提高產能。當場地整合項目完成後，我們預計將關閉 13 個 RMS 設施，約佔過去三年 RMS 設施總數的 60%。

During fiscal 2025, we sold two properties as a result of our site consolidation project. One property was sold in June, and the other property was sold in September. And the net proceeds were used to repay principal on our term loans during July and October, respectively.

在 2025 財年，由於我們的場地整合項目，我們出售了兩處房產。其中一處房產於6月售出，另一處房產於9月售出。淨收益分別用於償還我們7月和10月的定期貸款本金。

Our efforts also saw additional achievements during the fourth quarter, including advancements in our RMS management operation system, which have been developed over the last 14 months and are now providing data and metrics that we believe will allow us to further improve RMS operations and efficiencies in the future.

在第四季度，我們的努力也取得了其他成果，包括 RMS 管理營運系統的改進。該系統在過去 14 個月中不斷發展，現在能夠提供數據和指標，我們相信這將使我們能夠在未來進一步改善 RMS 營運和效率。

We continue to improve our North American transportation fleet and operations. In the second quarter of fiscal 2026, we expect to have achieved a 24% reduction in our fleet to yield the cost savings since bringing the North American transportation in-house.

我們將繼續改進我們在北美的運輸車隊和營運。預計到 2026 財年第二季度，我們的車隊規模將減少 24%，從而實現自北美運輸業務收歸內部以來節省的成本。

This two-year project has been critical helping improve our delivery and client satisfaction. In addition to other improvements being made with order intake and accuracy, we have seen a 55% reduction in our RMS client complaints over the last two years.

這項為期兩年的專案對於提高我們的交付效率和客戶滿意度至關重要。除了訂單接收和準確性方面的其他改進之外，在過去的兩年裡，我們的 RMS 客戶投訴減少了 55%。

Subsequent to the end of fiscal fourth quarter, in October 2025, we're able to transfer our commercial operations to one new CRM system, integrating multiple systems into one solution for our customer relationship management systems.

在 2025 年 10 月，也就是本財年第四季結束後，我們將能夠把我們的商業營運轉移到一個新的 CRM 系統，將多個系統整合到一個客戶關係管理系統解決方案中。

In addition to cost savings, we anticipate this will provide operating efficiencies, improved data metrics and enhanced ability to communicate internally between business segments and with customers. And we have reduced the number of IT systems from 249 in early 2022 to 162 as of October 2, 2025. This reduction has been part of our planned efforts beginning in 2022 to streamline and enhance our technology environment. We look forward to continue to focus our efforts on increasing revenue, improving margins and improving our client experiences.

除了節省成本外，我們預計這將提高營運效率，改善數據指標，並增強業務部門之間以及與客戶之間的內部溝通能力。截至 2025 年 10 月 2 日，我們的 IT 系統數量已從 2022 年初的 249 個減少到 162 個。此次裁員是我們從 2022 年開始製定的計畫的一部分，旨在精簡和提升我們的技術環境。我們期待繼續致力於提高收入、提升利潤率和改善客戶體驗。

While we did face some headwinds in the quarter, we were pleased with our results, which we believe further demonstrate our ability to identify opportunities, integrate businesses we acquired in startup and implement action plans designed to improve revenue and margins. As for our balance sheet, we generated $14.3 million of cash from operations in the fourth quarter and increased our cash balance to $21.7 million compared to $6.2 million at June 30, 2025. Our first lean term debt matures in November of 2026, our second lien term loan in February of 2027 and our convertible debt in October of 2027.

儘管本季我們遇到了一些不利因素，但我們對業績感到滿意，我們相信這進一步證明了我們有能力發現機遇，整合我們在創業初期收購的業務，並實施旨在提高收入和利潤率的行動計劃。至於我們的資產負債表，我們在第四季透過經營活動產生了 1,430 萬美元的現金，現金餘額從 2025 年 6 月 30 日的 620 萬美元增加到 2,170 萬美元。我們的第一筆低利率定期債務將於 2026 年 11 月到期，第二筆留置權定期貸款將於 2027 年 2 月到期，可轉換債務將於 2027 年 10 月到期。

As we mentioned previously, we have retained Perella Weinberg to assist us in exploring potential debt refinancing alternatives with the goal of improving our balance sheet. We are actively having these discussions, and we'll provide more information at the appropriate time.

正如我們之前提到的，我們聘請了 Perella Weinberg 來協助我們探索潛在的債務再融資方案，以改善我們的資產負債表。我們正在積極進行這些討論，並將在適當的時候提供更多資訊。

Before I turn the call over to Beth, I want to recognize and acknowledge that it has been very, very nice to see this increase in DSA revenue and the DSA awards over the last three quarters and believe these trends are continuing through the first two months of the current quarter compared to the same period in prior year.

在將電話交給貝絲之前，我想表達我的讚賞和認可，過去三個季度DSA收入和DSA獎勵的增長令人非常高興，並且我相信與去年同期相比，這些趨勢將在本季度的前兩個月繼續保持。

However, as a reminder, we are coming off some very weak numbers from a year ago and the geopolitical and macroeconomic conditions, risk and uncertainties are likely to remain with the industry for the foreseeable future. I'll now hand things over to Beth to provide the financial overview.

不過要提醒的是，我們去年同期的數據非常疲軟，地緣政治和宏觀經濟狀況、風險和不確定性在可預見的未來可能會持續影響該產業。現在我將把財務概覽交給貝絲。

Thank you, Bob, and good afternoon, everyone. For the fourth quarter of fiscal 2025, total revenue was $138.1 million compared to $130.4 million in the fourth quarter of fiscal 2024. This was a $7.7 million or 5.9% increase in revenue from the prior year quarter, primarily driven by increased revenue of $7.1 million within our DSA segment. For fiscal 2025, total revenue was $513 million compared to $490.7 million in fiscal 2024. This was a $22.3 million or 4.5% increase in revenue from the prior year due to a $14.5 million or 4.7% increase in RMS revenue primarily driven by higher NHP product and service revenue and a $7.8 million or 4.3% increase in DSA revenue.

謝謝你，鮑勃，大家下午好。2025 財年第四季總營收為 1.381 億美元，而 2024 財年第四季為 1.304 億美元。與去年同期相比，營收增加了 770 萬美元，增幅為 5.9%，主要得益於 DSA 部門收入增加了 710 萬美元。2025 財年總營收為 5.13 億美元，而 2024 財年為 4.907 億美元。與前一年相比，收入增加了 2,230 萬美元，增幅為 4.5%。這主要得益於 RMS 收入增加了 1,450 萬美元，增幅為 4.7%（主要由 NHP 產品和服務收入的成長推動），以及 DSA 收入增加了 780 萬美元，增幅為 4.3%。

DSA revenue in the fiscal 2025 fourth quarter was $51.6 million compared to $44.6 million in Q4 of fiscal 2024. The year-over-year 15.7% increase in DSA revenue was primarily driven by an increase in discovery and translational science services, biotherapeutics, general toxicology services and surgical services.

2025 財年第四季 DSA 營收為 5,160 萬美元，而 2024 財年第四季為 4,460 萬美元。DSA 收入年增 15.7%，主要得益於發現和轉化科學服務、生物治療、一般毒理學服務和外科手術服務的增長。

DSA revenue for fiscal 2025 was $187.9 million compared to $180.1 million for fiscal year 2024. The year-over-year 4.3% increase in DSA revenue was primarily driven by an increase in safety assessment services, including biotherapeutic services, surgical services and general toxicology and an increase in discovery and translational science services.

2025 財年 DSA 營收為 1.879 億美元，而 2024 財年為 1.801 億美元。DSA 收入年增 4.3%，主要得益於安全評估服務（包括生物治療服務、外科手術服務和一般毒理學）以及發現和轉化科學服務的成長。

Additionally, the year-over-year increase in DSA revenue was driven by our improved performance over the last six months of the fiscal year. The book-to-bill ratio for DSA for the fourth quarter of fiscal 2025 was 1.08:1, and our trailing 12-month book-to-bill was 1.05:1. DSA backlog was $138.2 million at September 30, 2025, compared to $129.9 million at September 30, 2024, and $134.3 million at June 30, 2025.

此外，DSA 營收年增率主要得益於本財年最後六個月業績的改善。2025 財年第四季 DSA 的訂單出貨比為 1.08:1，過去 12 個月的訂單出貨比為 1.05:1。截至 2025 年 9 月 30 日，DSA 的積壓訂單為 1.382 億美元，而截至 2024 年 9 月 30 日為 1.299 億美元，截至 2025 年 6 月 30 日為 1.343 億美元。

Overall, net new DSA awards this quarter were $54.2 million, a 61% increase over Q4 of fiscal 2024 and a trailing three-quarter increase of 37% year-over-year. We continue to see strong quoting and awards for the months of October and November.

整體而言，本季新增 DSA 合約淨額為 5,420 萬美元，比 2024 財年第四季成長 61%，比上年同期成長 37%。10月和11月，我們繼續看到強勁的報價和獲獎情況。

The backlog conversion rate in the fourth quarter of fiscal 2025 was 37.4%, up from approximately 33% in the prior year period. The DSA cancellations and negative change orders in the fourth quarter of fiscal 2025 were approximately 29% lower compared to the prior year fourth quarter. Cancellations in the trailing 12-month period were approximately 7% more than the prior trailing 12-month period.

2025 財年第四季積壓訂單轉換率為 37.4%，高於去年同期的約 33%。2025 財年第四季的 DSA 取消訂單和負面變更訂單比去年同期減少了約 29%。過去 12 個月的取消率比前一個過去 12 個月增加了約 7%。

RMS revenue for the fourth quarter of fiscal 2025 was $86.5 million, an increase of $700,000 or 0.8% compared to Q4 of fiscal year 2024. RMS revenue for fiscal 2025 of $325.1 million increased $14.5 million or 4.7% compared to fiscal 2024.

2025 財年第四季 RMS 營收為 8,650 萬美元，比 2024 財年第四季增加了 70 萬美元，增幅為 0.8%。2025 財年 RMS 營收為 3.251 億美元，比 2024 財年增加了 1,450 萬美元，增幅為 4.7%。

The increase in RMS revenue was primarily due to higher NHP products and services revenue. The overall operating loss for the fourth quarter of fiscal 2025 decreased $6.4 million from $13.2 million in the fourth quarter of fiscal 2024 to $6.8 million in Q4 of fiscal 2025, primarily due to increases in RMS operating income of $2.9 million and an DSA operating income of $2.3 million as well as a reduction in unallocated corporate expenses of $1.1 million.

RMS收入的成長主要是由於NHP產品和服務收入的增加。2025 財年第四季整體經營虧損較 2024 財年第四季的 680 萬美元，主要原因是 RMS 經營收入增加了 290 萬美元，DSA 經營收入增加了 230 萬美元，以及未分配公司支出減少了10 萬美元。

The increase in RMS operating income was driven by a reduction in cost of revenue, which predominantly related to reduction in costs related to NHP's operating expenses and depreciation and amortization of intangible assets.

RMS 營業收入的成長主要得益於營業成本的降低，而營業成本的降低又主要與 NHP 的營運費用以及無形資產的折舊和攤銷相關的成本降低有關。

The increase in DSA operating income was driven by the increase in revenue discussed above, partially offset by an increase in cost of revenue primarily driven by increased research model expenses, compensation and benefits expense, professional fees and facility-related expenses.

DSA 營業收入的成長主要得益於上述收入的成長，但部分被收入成本的成長所抵消，而收入成本的成長主要源自於研究模式費用、薪資福利費用、專業費用和設施相關費用的增加。

The overall operating loss for fiscal 2025 decreased $55.5 million from $86.4 million in fiscal 2024 to $30.9 million in fiscal 2025, primarily due to RMS operating results. The change in RMS operating results was primarily related to decreased operating expenses, a $14.5 million increase in revenue previously mentioned and partially offset by increased cost of revenue.

2025 財年整體營運虧損較 2024 財年的 8,640 萬美元減少 5,550 萬美元，至 2025 財年的 3,090 萬美元，主因是 RMS 的營運表現。RMS 經營績效的變動主要與營運費用的減少有關，而先前提到的 1,450 萬美元的收入成長也被部分收入成本的增加所抵銷。

The $38.2 million decrease in operating expenses was primarily driven by the $28.5 million charge incurred during fiscal year 2024 related to the Resolution Agreement and Plea Agreement, which did not repeat during fiscal year 2025 and a legal settlement of $7.6 million that we received during fiscal year 2025.

營運費用減少 3,820 萬美元，主要是由於 2024 財年與和解協議和認罪協議相關的 2,850 萬美元費用，該費用在 2025 財年沒有再次發生，以及我們在 2025 財年收到的 760 萬美元法律和解金。

Increase in RMS cost of revenue primarily related to increased costs associated with the increased NHP related products and service revenue. Non-GAAP operating income for our DSA segment in the fourth quarter of fiscal 2025 was $9.3 million or 6.7% of total revenue compared to $7.4 million or 5.6% of total revenue in the fourth quarter of fiscal 2024.

RMS 收入成本增加主要與 NHP 相關產品和服務收入增加相關的成本增加有關。2025 財年第四季，我們 DSA 部門的非 GAAP 營業收入為 930 萬美元，佔總營收的 6.7%，而 2024 財年第四季為 740 萬美元，佔總營收的 5.6%。

Non-GAAP operating income for our DSA segment for fiscal 2025 was $28.5 million or 5.6% of total revenue compared to $30.3 million or 6.2% of total revenue in fiscal 2024.

2025 財年，我們 DSA 部門的非 GAAP 營業收入為 2,850 萬美元，佔總收入的 5.6%，而 2024 財年為 3,030 萬美元，佔總收入的 6.2%。

As Bob mentioned, we continue to be focused on our DSA margins, and we expect to see improvement in future quarters, largely through operating leverage and assuming we continue to see a stable pricing environment.

正如鮑伯所提到的，我們將繼續專注於我們的DSA利潤率，我們預計未來幾季將有所改善，這主要得益於營運槓桿作用，並假設我們繼續看到穩定的定價環境。

In our RMS segment, non-GAAP operating income in the fourth quarter of fiscal 2025 was $14.9 million or 10.8% of total revenue compared to $12.7 million or 9.7% of total revenue in the fourth quarter of fiscal 2024. Non-GAAP operating income for RMS segment in fiscal 2025 was $56.7 million or 11.1% of total revenue compared to $44.3 million or 9% of total revenue in fiscal 2024.

在我們的RMS業務部門，2025財年第四季的非GAAP營業收入為1,490萬美元，佔總營收的10.8%，而2024財年第四季為1,270萬美元，佔總營收的9.7%。2025 財年 RMS 部門的非 GAAP 營業收入為 5,670 萬美元，佔總營收的 11.1%，而 2024 財年為 4,430 萬美元，佔總營收的 9%。

Interest expense in Q4 of fiscal 2025 increased to $15.7 million from $12.3 million in the fourth quarter of fiscal 2024 primarily due to noncash interest incurred in relation to the second lien notes issued in September of 2024.

2025 財年第四季利息支出從 2024 財年第四季的 1,230 萬美元增加到 1,570 萬美元，主要原因是 2024 年 9 月發行的第二留置權票據產生了非現金利息。

Interest expense for fiscal year 2025 increased to $56.6 million from $46.9 million in fiscal year 2024, primarily due to noncash interest incurred in relation to the second lien notes issued in September of 2024, and periodic growth on our revolving credit facility.

2025 財年的利息支出從 2024 財年的 4,690 萬美元增加到 5,660 萬美元，主要原因是 2024 年 9 月發行的第二留置權票據產生的非現金利息，以及循環信貸額度的定期成長。

Consolidated net loss attributable to common shareholders in the fourth quarter of fiscal 2025 totaled $8.6 million or a $0.25 loss per diluted share. This is compared to consolidated net loss attributable to common shareholders of $18.9 million or $0.73 loss per diluted share in the fourth quarter of fiscal 2024.

2025 財年第四季歸屬於普通股股東的合併淨虧損總額為 860 萬美元，即每股攤薄虧損 0.25 美元。相較之下，2024 財年第四季歸屬於普通股股東的合併淨虧損為 1,890 萬美元，即每股攤薄虧損 0.73 美元。

Consolidated net loss attributable to common shareholders for fiscal 2025 totaled $68.6 million or $2.11 loss per diluted share. This is compared to consolidated net loss attributable to common shareholders of $108.4 million or $4.19 loss per diluted share in the fourth quarter of fiscal 2024.

2025 財政年度歸屬於普通股股東的合併淨虧損總額為 6,860 萬美元，即每股攤薄虧損 2.11 美元。相較之下，2024 財年第四季歸屬於普通股股東的合併淨虧損為 1.084 億美元，即每股攤薄虧損 4.19 美元。

For the fourth quarter of 2025, adjusted EBITDA was $11.8 million or 8.5% of total revenue compared to $5.4 million or 4.1% of total revenue for the fourth fiscal quarter of 2024. For fiscal year 2025, adjusted EBITDA was $34 million or 6.6% of total revenue compared to $18.2 million or 3.7% of total revenue for fiscal year 2024.

2025 年第四季調整後 EBITDA 為 1,180 萬美元，佔總營收的 8.5%，而 2024 年第四季調整後 EBITDA 為 540 萬美元，佔總營收的 4.1%。2025 財年調整後 EBITDA 為 3,400 萬美元，佔總營收的 6.6%，而 2024 財年調整後 EBITDA 為 1,820 萬美元，佔總營收的 3.7%。

Our balance sheet as of September 30, 2025, included $21.7 million in cash and cash equivalents as compared to $21.4 million on September 30, 2024, and $6.2 million on June 30, 2025. Net cash provided by operating activities in the fourth quarter of fiscal 2025 was $14.3 million. This was primarily driven by a change in operating assets and liabilities of $18 million, partially offset by consolidated net loss adjusted for noncash impact of $3.7 million.

截至 2025 年 9 月 30 日，我們的資產負債表顯示現金及現金等價物為 2,170 萬美元，而 2024 年 9 月 30 日為 2,140 萬美元，2025 年 6 月 30 日為 620 萬美元。2025財年第四季經營活動產生的淨現金為1,430萬美元。這主要是由於營運資產和負債的變動 1,800 萬美元，部分被經非現金影響調整後的合併淨虧損 370 萬美元所抵銷。

The change in operating assets and liabilities was largely attributable to NHP customer deposits received during the fourth quarter. Cash used in operating activities was $10.5 million for the 12 months ended September 30, 2025, compared to $6.8 million of cash used in operating activities for the 12 months ended September 30, 2024.

營運資產和負債的變化主要歸因於第四季度收到的 NHP 客戶存款。截至 2025 年 9 月 30 日的 12 個月內，經營活動使用的現金為 1,050 萬美元，而截至 2024 年 9 月 30 日的 12 個月內，經營活動使用的現金為 680 萬美元。

The company has utilized and will continue to utilize its revolving credit facility during the normal course of business as needed. As of September 30, 2025, the company had access to the $15 million revolver and had an outstanding balance of $3 million.

公司過去和將來都會根據需要，在正常業務過程中使用其循環信貸額度。截至 2025 年 9 月 30 日，該公司可以使用 1,500 萬美元的循環信貸額度，但未償還餘額為 300 萬美元。

Total debt, net of debt issuance costs, as of September 30, 2025, was $402.1 million compared to $393.3 million on September 30, 2024, inclusive of our first lien term loans, our convertible notes and our second lien notes.

截至 2025 年 9 月 30 日，扣除債務發行成本後的總債務為 4.021 億美元，而截至 2024 年 9 月 30 日為 3.933 億美元，其中包括我們的第一順位定期貸款、可轉換票據和第二順位票據。

Capital expenditures in the fourth quarter of fiscal 2025 were $2.7 million or 1.9% of total revenue. The fourth quarter of fiscal 2024 capital expenditures were $5.3 million or 4.1% of revenue. Capital expenditures in the 12 months of fiscal 2025 were $16.6 million or 3.2% of total revenue. Fiscal 2024 capital expenditures were $22.3 million or 4.5% of revenue.

2025 財年第四季資本支出為 270 萬美元，佔總營收的 1.9%。2024 財年第四季資本支出為 530 萬美元，佔營收的 4.1%。2025 財年 12 個月的資本支出為 1,660 萬美元，佔總營收的 3.2%。2024 財年資本支出為 2,230 萬美元，佔營收的 4.5%。

While we continue to feel positive about the progress we have made in recent quarters, we are not providing formal fiscal 2026 guidance at this time. As we have stated previously, we hope to resume providing guidance once we have greater clarity on the market and client demand and clarity on any impact to our business once there is more information on tariffs.

儘管我們對近幾季的進展感到樂觀，但目前我們暫時不提供 2026 財年的正式業績指引。正如我們之前所說，我們希望在對市場和客戶需求有更清晰的了解，以及在關稅方面有更多資訊後，能夠更清楚地了解對我們業務的任何影響後，恢復提供指導。

As with that financial overview, we will turn the call over to our operator for questions.

與剛才的財務概覽一樣，我們將把電話轉接給接線生解答問題。

(Operator Instructions) Frank Takkinen, Lake Street Capital Markets.

（操作說明）弗蘭克·塔基寧，湖街資本市場。

I was hoping I could start with one on -- one of your previous comments in the prepared remarks about some headwinds in the quarter. Look like really nice top line, really great bookings, maybe a little bit more expense in the model than expected.

我希望能夠先談談您在事先準備好的發言稿中提到的本季面臨的一些不利因素。看起來總業績非常不錯，預訂情況也非常好，只是模型的成本可能比預期的要高一些。

Can you maybe kind of parse out what some of those headwinds were and maybe what revenue would have been without those headwinds or what those incremental expenses were in the quarter to kind of give us a better feel for maybe what some of the extra expenses in the model were and kind of parse out what the quarter could have been maybe without some of the extra cybersecurity expenses in the model?

您能否具體分析一下這些不利因素是什麼，如果沒有這些不利因素，收入會是多少，或者本季度新增支出是多少，以便我們更好地了解模型中的一些額外支出，並分析一下如果沒有模型中的一些額外網絡安全支出，本季度可能會是什麼樣子？

Yeah. Well -- Hi, Frank. You identified what the major headwind was for us in the early August finding out the cybersecurity incident we reported. That was probably the most -- major thing we faced. And we can quantify some of those things, a lot of overtime, a lot of communication, a lot of third-party cost and some studies and some work that may have been redone.

是的。嗨，弗蘭克。您指出了我們在 8 月初發現我們報告的網路安全事件時所面臨的主要阻力。那可能是我們面臨的最重大的問題。我們可以量化其中的一些事情，例如大量的加班時間、大量的溝通、大量的第三方成本，以及一些可能需要重做的研究和工作。

But it's the intangible cost that you can't really identify the toll it takes on the operation or the customers or people may be holding back on issuing an award until you get through it. And so it's hard to quantify that. And what happened, if you would have asked me, do you think you could have increased our award 63% during a quarter or come close to the $54 million in awards we had, I would have never expected that.

但最難量化的成本是無法確定的，你無法真正衡量它對營運或客戶造成的損失，或者人們可能會等到你完成這件事後才頒發獎項。因此，很難對其進行量化。如果你問我，你認為我們能否在一個季度內將獎勵額提高 63%，或接近我們當時獲得的 5,400 萬美元的獎勵額，我絕對想不到。

So I think we did a great job, but I think it would also be naive for us to think that it didn't have some impact on our earnings, our expenses and some of our awards. That would be hard for me to quantify. If we could quantify, I would. But I think it's really those intangible costs and the time it takes for organization to focus on that.

所以我覺得我們做得很好，但如果我們認為這沒有對我們的收入、支出和一些獎項產生任何影響，那就太天真了。這對我來說很難量化。如果可以量化，我會這麼做。但我認為真正的問題是那些無形的成本，以及組織需要花時間來關注這些問題。

As you can see, we're very focused on the client service, we're very focused on integration, we're very focused on IT integration. And so that's a lot of diversion of time and effort when you have to go through something like that. But I was very pleased how quickly we recovered. I was very pleased with our ability.

如您所見，我們非常注重客戶服務，非常注重整合，非常注重IT整合。所以，當你必須經歷這樣的事情時，會分散你大量的時間和精力。但我很滿意我們恢復得如此之快。我對我們的能力非常滿意。

We have had other times before when we've had other suppliers hit or that we've had to go manual on paper. So we try to be prepared, but no matter how prepared you are, there are always things that you're not -- you're never prepared for.

以前我們也遇到過其他供應商出現問題或必須手動用紙筆處理的情況。所以我們努力做好準備，但無論你準備得多麼充分，總是會有一些事情是你沒有預料到的——你永遠無法做好萬全準備。

But overall, I was very pleased with how we responded. But yes, it'd be naive to think that it did have some impact that is not really that quantifiable. But I think we're getting through it nicely. And as I look at the last quarter and I look at the first two months of this quarter, the quoting and the awards and -- are moving forward nicely. So I think we've gotten through that.

但總的來說，我對我們的應對方式非常滿意。但是，如果認為它確實產生了某種無法量化的影響，那就太天真了。但我認為我們進展順利。當我回顧上個季度和本季的前兩個月時，報價和獎項的發放都進展順利。所以我覺得我們已經渡過難關了。

Got it. That's helpful. And then my second one was going to kind of follow up on your last sentence there. Just any quarter-to-date trends you're comfortable sharing would be great on -- as it relates to ordering patterns and then a refresh around kind of some seasonality.

知道了。那很有幫助。然後我的第二個問題其實是想接著你剛才那句話繼續說下去。如果您願意分享本季至今的任何趨勢，那就太好了——這與訂購模式以及圍繞某些季節性的更新有關。

I think in the past, you've called out some of the holiday season has had some seasonality for kind of revenue recognition for the quarter. So anything you can help us understand as we think about [these things] would be great.

我認為你過去曾指出，假日期間的收入確認有一定的季節性因素。所以，如果您能幫助我們理解[這些問題]，那就太好了。

Yeah. Thank you. Our quarter ended December 30 is typically our weakest quarter during the holidays. We -- for a lot of research models and our diet between Thanksgiving and Christmas tends to be a slower time. There are probably less working days. Some of the universities in some places are down for the holidays. So we do tend to see this being our -- typically our weakest quarter.

是的。謝謝。截至12月30日的季度通常是我們假日期間業績最差的季度。我們——對於許多研究模型來說，感恩節到聖誕節期間的飲食往往比較清淡。工作日可能會減少。部分地區的大學因假日而放假。所以我們往往會發現，這通常是我們業績最差的季度。

As far as quantifying, we're coming off six months -- the last 6 months of 12.5% DSA revenue, for us, is very important. As we go back to Investor Day, Frank, there are really two things that we're focused on. Costs coming out of the RMS business. We're not looking for a lot of major increase in sales, but costs coming out of the RMS business, we identified that $6 million or $7 million.

就量化而言，我們剛剛經歷了六個月——過去六個月的DSA收入增長了12.5%，這對我們來說非常重要。法蘭克，回到投資人日，我們真正關注的是兩件事。RMS業務產生的成本。我們不指望銷售額會大幅成長，但RMS業務的成本已確定為600萬或700萬美元。

And we talked about growing the DSA business and seeing incremental margins of 50%-plus on that growth. And so seeing that 12% revenue -- increase in revenue over the last six months is encouraging. And we have an increase in awards of over 37% over the last nine months. So that's -- I think last quarter, we say 63%, but it's coming off a very weak Q4 of last year.

我們討論了發展DSA業務，並期望透過這種成長獲得50%以上的增量利潤。因此，看到過去六個月收入增加了 12%，令人鼓舞。在過去九個月裡，我們的獎勵數量增加了 37% 以上。所以——我認為上個季度我們說是 63%，但這是在去年第四季業績非常疲軟的情況下取得的。

So -- but if we can maintain that awards increase of somewhere 25 -- 20% to 30%, and we can maintain the revenue increase of anything close to what we've experienced the last two quarters, then we're going to be pretty pleased with how things are going to go for us, I think, in the future. So I'm not seeing anything right now that says that we can't -- after these last two months, that can't -- it's not possible.

所以——但是如果我們能保持獎勵增長20%到30%左右，並且能保持收入增長接近過去兩個季度的水平，那麼我認為，我們對未來的發展前景會相當滿意。所以，經過這兩個月的種種跡象，我目前還沒有看到任何跡象表明我們不能——這是不可能的。

I think that it would be helpful to see others in the industry, see some of those same tailwinds that we've seen. And I think some are starting to indicate they're starting to see that. I think that's very encouraging. For us, when the industry does well, we're obviously going to do even better.

我認為，看看業內其他公司是否也擁有我們所看到的這些有利因素，會很有幫助。而且我認為有些人已經開始意識到這一點了。我覺得這非常令人鼓舞。對我們來說，當整個產業發展良好時，我們顯然會做得更好。

But we've had a great nine months, no doubt about it. Very pleased, probably better than we thought we could have done. I think we're seeing the pricing stabilize quite a bit. And I think we're hopefully hearing other people now starting to see some of those same trends. And as we -- and that will be a huge help to us also.

但毫無疑問，我們度過了非常棒的九個月。非常滿意，可能比我們預想的還要好。我認為價格已經趨於穩定。我希望我們現在也能聽到其他人開始注意到這些趨勢。而且，這對我們來說也將是一個巨大的幫助。

Matt Hewitt, Craig-Hallum Capital Group.

馬特·休伊特，克雷格-哈勒姆資本集團。

Maybe first up, and I'm sure you're sick of talking about this since April, but with the FDA now announcing formal guidance regarding new approach methodologies and trying to pare back on the use of large animal models in toxicology studies, I'm just curious if you could remind us how you're positioned, maybe your exposure to monoclonal antibodies, anything along those lines.

首先，我知道您從四月份開始就一直在談論這個問題，肯定您已經厭倦了，但是鑑於 FDA 現在宣布了關於新方法論的正式指導意見，並試圖減少在毒理學研究中使用大型動物模型，我只是好奇您是否可以提醒我們一下您的立場，比如您接觸過單克隆抗體的情況，或者其他類似的問題。

Yeah. Well, our revenue related to monoclonal antibodies is minimal, very small if any. And so we're not really worried about that. With the amount of quoting activity we have going on, that's not going to, I think, have an impact. We do sell a lot of research models and NHPs. I could not tell you how all of our customers use those NHPs. I've seen some others that we've reached out and talked to, and I don't think it they see any impact.

是的。我們與單株抗體相關的收入微乎其微，即使有，也微乎其微。所以我們並不太擔心。鑑於我們目前的報價活動量，我認為這不會產生影響。我們確實銷售很多研究模型和自然人類夥伴。我無法告訴你我們所有的客戶是如何使用這些天然保健品的。我見過一些我們聯繫過並交談過的人，我認為他們沒有感受到任何影響。

I think what we saw in the guidance that they're providing is just that guidance. The customers are still going to make their own decisions about what they're going to require for safety assessment testing. And I don't know -- so this one thing is guidance. Second, what are our customers going to want to do before they put a drug into a human in terms of safety assessment.

我認為我們從他們提供的指導意見中看到的，正是這種指導。客戶仍將自行決定他們需要哪些安全評估測試。我不知道——所以這一點需要指導。其次，我們的客戶在將藥物用於人體之前，希望在安全性評估方面做些什麼。

And so we've not seen a big change in that. And right now, I wouldn't see it having really any impact. But I think it was a positive that they were able to clarify what they came out and said in April. But still, it's guidance. It doesn't mean that's what people are going to do or not do because they're all going to make their own decisions of what is safe and what they want to do from a safety assessment standpoint.

所以，這方面我們還沒有看到太大的改變。就目前而言，我認為它不會產生任何實際影響。但我認為，他們能夠澄清四月發表的言論，是件好事。但這仍然是一種指導。但這並不意味著人們一定會這樣做或不這樣做，因為每個人都會從安全評估的角度出發，自行決定什麼是安全的以及他們想要做什麼。

That's super helpful. And then -- and I realize it's early in the pharma budget cycle as they start to look at '26. But as you talk to some of your partners, some of your customers about those budgets for next year, what are you hearing? I mean, is your sense that budgets are going to be flat to up next year? Any color on those lines would be helpful, too.

這太有幫助了。然後──我意識到現在還處於醫藥預算週期的早期階段，他們開始著眼於 2026 年。但是，當你和一些合作夥伴、一些客戶談論明年的預算時，你聽到了什麼？我的意思是，你覺得明年的預算會持平還是會成長？如果能給這些線條塗上任何顏色就更好了。

Well, right now, I think we are seeing, as we did last year, and we've seen so far this quarter an increase in the quoting that is meaningful. I would say this quarter, I think we'll see a substantial increase in quoting. I think we're -- and the closing also. So when it comes into next year, we're probably booking a little further out than we have for a while. And so I think that's encouraging.

嗯，目前我認為我們看到的情況和去年一樣，而且本季到目前為止，我們也看到了報價的顯著增長。我認為本季報價量將大幅成長。我認為我們——以及收尾工作。所以到了明年，我們的預訂時間可能會比以往更早。所以我覺得這令人鼓舞。

We also, I think over -- as we mature, again, we're a very young company. And I think what we're seeing is more of a reoccurring customer base. So a little bit more comfort in gaining our customers' confidence. We do a great job of delivery, and I think we see an increasing amount of reoccurring customers, which is also very encouraging.

我認為，隨著我們逐漸成熟，我們仍然是一家非常年輕的公司。我認為我們現在看到的是回頭客數量的增加。這樣一來，我們就能更輕鬆地贏得客戶的信任。我們的配送服務非常出色，而且回頭客數量也在增加，這非常令人鼓舞。

But right now, obviously, we're on a pretty good roll in the last nine months. I don't see anything that's going to disrupt that. And I'd be very encouraged to start hearing as I think we started to hear others in the industry also identifying the same trends.

但很顯然，過去九個月我們發展勢頭良好。我看不出有什麼事情會破壞這一點。我很高興聽到業內其他人也開始注意到同樣的趨勢。

So I don't have any more to add to that. I can't tell you what they're going to do next year. But right now, what we see so far this year and in the last two months is we haven't seen anything to dampen our optimism and our ability to see an increase in revenue next year.

所以我沒有什麼要補充的了。我無法告訴你他們明年會做什麼。但就目前而言，從今年迄今為止以及過去兩個月的情況來看，我們還沒有看到任何會削弱我們樂觀情緒以及明年收入成長能力的因素。

No, that's good. Thank you. And yeah, congratulations. It hasn't been an easy environment. You guys have executed well the last few quarters. So congratulations on that.

不，那很好。謝謝。是的，恭喜。這裡的環境並不輕鬆。你們過去幾季表現都很出色。所以，恭喜你。

(Operator Instructions) David Windley, Jefferies.

（操作說明）David Windley，傑富瑞集團。

Bob, maybe another way to interrogate the DSA improvement in the environment would be to ask around your lead times. What -- how quickly can you start studies for clients and maybe flipping the coin, how quickly do clients want to start studies? And are you seeing any movement on that measure?

鮑勃，或許另一種探究DSA改進環境的方法是詢問你們的交貨週期。什麼－你能多快開始為客戶進行研究？或者反過來說，客戶希望多快開始研究？你看到這方面有進展嗎？

David, I guess some of that depends on studies. We typically in the DSA business, see our DSA business come in and start within weeks, not months. The larger animal safety assessment businesses tend to come in and -- with closer to a three to nine-month lead time. We have started studies faster than that.

戴維，我想這其中有些取決於研究結果。在DSA業務領域，我們通常會看到DSA業務在幾週內而不是幾個月內啟動。規模較大的動物安全評估公司通常會提前三到九個月進行評估。我們啟動相關研究的速度比這更快。

But right now, we're operating -- our large animal safety assessment capacity is operating at a very high level of capacity at the moment. So I think we can generally see out a couple of quarters in terms of the large animal capacity and the usage of that capacity. But the -- for the discovery and for the smaller animals, we can generally start those much quicker.

但目前，我們的大型動物安全評估能力正處於非常高的運作水準。所以我認為，就大型動物的飼養能力和該能力的利用而言，我們大致可以預測未來幾季的情況。但是，對於發現和較小的動物來說，我們通常可以更快地開始。

Okay. Flipping to RMS, and Frank may have tried to get at this a little bit, but in your segment disclosures, margin was impacted sequentially. And I'm wondering, I guess, first of all, was the cyber event cost differentially impactful in the RMS segment versus DSA? Or I would kind of have thought that, that would have been at the corporate level but just want to try to interrogate the moving parts in that RMS margin.

好的。轉到RMS，Frank可能已經嘗試稍微解決這個問題，但在你們的分部揭露中，利潤率受到了環比影響。我想問的是，首先，網路事件成本對 RMS 細分市場和 DSA 細分市場的影響是否有所不同？或者我原本以為，那應該是公司層面的事情，但我只是想探究一下 RMS 利潤率的運作機制。

Well, the RMS margin for our small animals and diet business tend to be improving as we've reduced the number of sites we have by 60%. And I think that's becoming a bigger part of our margin story actually and that's improving. And I think we'll see that improve this year as those costs continue to come out. I believe that the -- in the NHP segment, sometimes that can differ based on the cost of the NHPs that we're bringing in. And so -- and some of the costs that relate to those NHPs.

嗯，隨著我們將門市數量減少了 60%，我們的小動物和飼料業務的 RMS 利潤率趨於提高。我認為這實際上正在成為我們利潤率故事中越來越重要的部分，而且這種情況正在改善。我認為隨著這些成本的持續下降，今年的情況會有所改善。我認為——在NHP領域，有時情況會因我們引進的NHP的成本而有所不同。因此——以及與這些天然保健品相關的一些成本。

So I think we probably had a few -- a little bit higher cost maybe than we did in the prior quarter. So that's just based on spot market, sometimes what we're buying and selling for.

所以我覺得我們可能有一些——成本可能比上一季略高一些。所以這只是基於現貨市場，有時就是我們的買賣價格。

Okay. Maybe zooming out then, if I think about that RMS business, you've got a few different things going on, you just named a couple. But I'm wondering along a number of vertices, like how would you describe volume versus price in RMS, large animal versus small animal mix and then kind of models versus services.

好的。如果從更宏觀的角度來看，如果我考慮RMS業務，你會發現它涉及幾個不同的方面，你剛才提到了其中幾個。但我很好奇一些方面，例如如何描述RMS中的銷售量與價格、大型動物與小型動物的組合，以及模型與服務之間的關係。

Again, you have kind of several different ways to think about the mix moving in that business. I wondered if you could shine a light into that for us. So volume versus price, large versus small animal. And then on the models versus services, I'm really digging at how is your animal services business in Texas developing?

同樣，對於該行業中的各種變化，你可以從幾個不同的角度來思考。我想請您幫我們解答一下這個問題。所以，數量與價格、大型動物與小型動物的關係。關於模式與服務，我真的很想了解您在德克薩斯州的動物服務業務是如何發展的？

Yeah, volume versus price. We -- the small animal business and the diet business, one of the reasons that it was important, we reduced the sites by 13 or by 60% is because that is a very fixed cost structure. So taking out the cost and maintaining volume definitely has -- allows us to improve our margins. And as volume goes up, that also -- and mainly fixed cost structure would help us quite a bit also. So I think we're seeing the margins improve and the diet and small animals because of that formula.

是的，銷量與價格的關係。我們—小型動物業務和飼料業務，之所以要減少 13 或 60% 的門市，其中一個重要原因是，這是一個非常固定的成本結構。因此，在降低成本並保持銷售的情況下，我們肯定能夠提高利潤率。隨著銷售量增加，固定成本結構也會對我們有很大的幫助。所以我認為，由於這個配方，利潤率、飲食和小動物的狀況都得到了改善。

As far as the Alice, Texas facility, you're right, that is -- we are buying and selling. We're also boarding and breeding and we have services. So the services business continues to grow as does the domestic breeding operation. And then some of the other margins come and go based on the demand in the market and what we're able to buy for and sell for. So -- and that has I think not -- the volatility of that market and that price has been a lot less than it has been in the last two or three years. I think it's become a lot more stable.

至於位於德克薩斯州愛麗絲的工廠，你說得對——我們確實在那裡進行買賣。我們也提供寄養、繁殖和其他服務。因此，服務業和國內養殖業都在持續成長。然後，其他一些利潤率會根據市場需求以及我們的買賣價格而有所變動。所以——而且我認為並非如此——該市場和價格的波動性已經比過去兩三年要小得多。我認為它已經穩定多了。

But there are a lot of factors in there, and you start putting in tariffs and you have transportation, you have quarantine. Those are all factors that can also change your cost. For the most part, we've been able to pass along tariffs. But if we have extended quarantine, which we at times have, and -- or change in transportation costs, which we at times have, those can also impact those margins.

但其中有許多因素，如關稅、運輸、隔離等等。這些因素都會影響你的成本。大部分情況下，我們已經能夠轉嫁關稅。但是，如果我們延長隔離期（這種情況時有發生），或運輸成本發生變化（這種情況時有發生），這些也會影響利潤率。

So those are probably a little bit more variable. We're not seeing big swings, but we're seeing -- and which is -- if that's half of our RMS business, then we could see some swings in those margins as the others are constantly improving.

所以這些因素可能波動比較大。我們沒有看到大的波動，但我們看到——也就是說——如果這部分占我們RMS業務的一半，那麼隨著其他業務的不斷改善，我們可能會看到這些利潤率出現一些波動。

Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Bob Leasure for any additional or closing remarks.

謝謝。目前隊列中沒有其他問題了。現在我將會議交還給鮑伯·萊瑟，請他作補充或總結發言。

All right. Well, thank you, everyone. We are encouraged with these results and the recent growth we've seen with our DSA quoting awards over the last two quarters. And as this growth develops, we'll need to remain vigilant on delivering an exceptional experience, service and product for our clients.

好的。謝謝大家。我們對上述結果以及過去兩季DSA報價獎勵的成長感到鼓舞。隨著業務的成長，我們需要繼續保持警惕，為客戶提供卓越的體驗、服務和產品。

We made great progress on the financial goals we outlined during our Investor Day, and we're continuing to evaluate opportunities to further improve our balance sheet. As I said in the past, we are a much better company today than we have ever been in the past, and we still feel we have a plan for much further improvement in the future. Thank you, and have a good day.

我們在投資者日上提出的財務目標方面取得了巨大進展，我們將繼續評估各種機會，以進一步改善我們的資產負債表。正如我之前所說，我們現在是一家比以往任何時候都好得多的公司，而且我們仍然認為我們有一個計劃，可以在未來取得更大的進步。謝謝，祝您今天過得愉快。

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

謝謝。今天的會議到此結束。感謝您抽空參與。您現在可以斷開連線了。