NPK International Inc (NPKI) 2023 Q4 法說會逐字稿

Please standby.

請等待。

Your program is about to begin.

你的節目即將開始。

(Operator Instructions) Good morning.

（操作員指示）早安。

My name is Sylvia and I will be your conference operator.

我叫西爾維婭，我將擔任您的會議操作員。

At this time, I would like to welcome everyone to the Newpark Resources fourth quarter and full year 2023 earnings.

此時此刻，我謹歡迎大家關注 Newpark Resources 第四季和 2023 年全年財報。

(Operator Instructions) It is now my pleasure to turn the floor over to Gregg Piontek, Senior Vice President and Chief Financial Officer.

（操作員說明）現在我很高興將發言權交給資深副總裁兼財務長 Gregg Piontek。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

I'd like to welcome everyone to the Newpark Resources fourth quarter 2023 conference call.

歡迎大家參加 Newpark Resources 2023 年第四季電話會議。

Joining me today is Matthew Lanigan, our President and Chief Executive Officer.

今天加入我的是我們的總裁兼執行長 Matthew Lanigan。

Before handing over to Matthew, I'd like to highlight that today's discussion contains forward-looking statements regarding future business and financial expectations.

在交給馬修之前，我想強調今天的討論包含有關未來業務和財務預期的前瞻性陳述。

Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the SEC.

由於各種風險和不確定性，包括我們向美國證券交易委員會提交的定期報告中所述的風險，實際結果可能與今天的前瞻性聲明中預測的結果有顯著差異。

Except as required by law, we undertake no obligation to update our forward-looking statements.

除法律要求外，我們不承擔更新前瞻性聲明的義務。

Our comments on today's call may also include certain non-GAAP financial measures.

我們對今天電話會議的評論可能還包括某些非公認會計準則財務指標。

Additional details and reconciliations to the most directly comparable GAAP financial measures are included in our quarterly earnings release, which can be found on our corporate website.

我們的季度收益報告中包含了與最直接可比較的 GAAP 財務指標的更多詳細資訊和調整表，您可以在我們的公司網站上找到該報告。

There will be a replay of today's call, and it will be available by webcast within the Investor Relations section of our website at newpark.com. Please note that the information disclosed on today's call is current as of February 22, 2024.

今天的電話會議將進行重播，並將透過我們網站 newpark.com 投資者關係部分的網路廣播進行播放。請注意，今天的電話會議中披露的資訊截至 2024 年 2 月 22 日。

At the conclusion of our prepared remarks, we will open the line for questions.

在我們準備好的發言結束後，我們將開放提問熱線。

And with that, I would like to turn the call over to our President and CEO, Matthew Lanigan.

接下來，我想將電話轉給我們的總裁兼執行長馬修·拉尼根 (Matthew Lanigan)。

Thank you, Greg, and welcome to everyone joining us on today's call.

謝謝格雷格，歡迎大家參加今天的電話會議。

I'm pleased to share that the Newpark team continued to execute at a high level in the fourth quarter, maintaining our focus on operational excellence while also advancing our multiyear business transformation strategy.

我很高興與大家分享，Newpark 團隊在第四季度繼續保持高水準執行，保持對卓越營運的關注，同時推進我們的多年業務轉型策略。

We entered 2023 with very clear priorities.

進入 2023 年，我們的優先事項非常明確。

First, a focus on operational efficiencies to drive improvements in returns and consistent free cash flow generation.

首先，注重營運效率，以推動回報的提高和持續的自由現金流產生。

Second, prioritizing investment in the growth of our Industrial Solutions business, while evaluating strategic alternatives for our Foods business, and finally, maintaining a strong balance sheet and returning excess cash generation to our shareholders.

其次，優先投資我們的工業解決方案業務的成長，同時評估我們食品業務的戰略替代方案，最後，保持強勁的資產負債表並將多餘的現金返還給我們的股東。

I'm pleased to say that in 2023, we delivered on all three.

我很高興地說，到 2023 年，我們實現了這三個目標。

Our Industrial Solutions business delivered 12% year-on-year growth in rental and service revenues, which included solid improvements across all major industry sectors, resulting in a 21% increase in segment operating income and a 13% increase in adjusted EBITDA.

我們的工業解決方案業務的租金和服務收入年增 12%，其中包括所有主要產業部門的穩定改善，導致分部營業收入成長 21%，調整後 EBITDA 成長 13%。

We continue to strengthen our position within the key utilities transmission market, which is forecasted to grow robustly over the next three years with an average of more than $30 billion per year projected to be spent annually on transmission line projects.

我們繼續鞏固我們在主要公用事業輸電市場中的地位，預計該市場將在未來三年內強勁增長，預計每年在輸電線路項目上的支出平均將超過 300 億美元。

According to recent EEI survey of asset owners for the full year 2023.

根據 EEI 最近對 2023 年全年資產所有者的調查。

Within our fluids business, our divestitures and restructuring actions, along with disciplined balance sheet management and the strong performance of our international businesses contributed to a 15% year-over-year improvement in adjusted EBITDA and a $69 million reduction in the segment's net working capital, resulting in the segment's strongest return on net assets since 2019.

在我們的流體業務中，我們的資產剝離和重組行動，加上嚴格的資產負債表管理和國際業務的強勁表現，使得調整後的EBITDA 同比提高了15%，該部門的淨營運資本減少了6,900萬美元，導致該部門自 2019 年以來最強的淨資產回報率。

Notably, our Eastern Hemisphere delivered 28% year over year growth to a record $257 million of revenues in 2023.

值得注意的是，我們的東半球 2023 年營收年增 28%，達到創紀錄的 2.57 億美元。

While our Canada operations also delivered 12% year-over-year revenue growth.

同時，我們的加拿大業務也實現了 12% 的年收入成長。

As a result, Newpark delivered $74 million of free cash flow in 2023.

因此，Newpark 在 2023 年實現了 7,400 萬美元的自由現金流。

We increased our rental fleet by 11% and continued to prioritize capital to the expansion of our rental and service footprint to serve the multibillion-dollar infrastructure markets.

我們將租賃機隊增加了 11%，並繼續優先考慮擴大租賃和服務足蹟的資本，為價值數十億美元的基礎設施市場提供服務。

We also launched a process to divest our fluids business and have been working diligently to move that forward.

我們也啟動了剝離流體業務的流程，並一直在努力推動這項進程。

And finally, we reduced our net debt by $54 million and returned $32 million to shareholders through the repurchase of 6.5 million shares across the board.

最後，我們將淨債務減少了 5,400 萬美元，並透過全面回購 650 萬股股票向股東返還了 3,200 萬美元。

For full year 2023, we executed against our stated priorities and set the business up for a solid 2024.

2023 年全年，我們依照既定的優先事項執行任務，並為 2024 年的業務做好準備。

Turning now to specifics of the fourth quarter, we generated adjusted net income of $4 million, or $0.04 per diluted share on revenues of $168 million.

現在談談第四季的具體情況，我們的調整後淨利潤為 400 萬美元，即每股攤薄收益 0.04 美元，營收為 1.68 億美元。

Within Industrial Solutions, while rental revenues remained in line with Q3 levels.

在工業解決方案領域，租金收入仍與第三季水準保持一致。

Flight for customer project timing shifts due to non-matting related supply chain and local permitting issues impacted expected Q4 direct sales deliveries.

由於與非匹配相關的供應鏈和當地許可問題影響了預期的第四季度直銷交付，客戶專案的飛行時間發生了變化。

Combined with reduced service activities, this led to a 19% sequential decline in segment revenues.

再加上服務活動的減少，導致該部門收入較上季下降 19%。

The segment delivered $17 million of fourth-quarter adjusted EBITDA, reflecting a 36% adjusted EBITDA margin, again, highlighting the business's flexibility to maintain strong margins and returns despite mixed shifts in revenue sources across borders.

該部門第四季度調整後 EBITDA 為 1700 萬美元，調整後 EBITDA 利潤率為 36%，再次突顯該業務在跨境收入來源混合變化的情況下保持強勁利潤和回報的靈活性。

As mentioned in my full-year comments, despite quarterly fluctuations, we remain encouraged with the longer-term outlook in our served markets and our ability to continue to penetrate them.

正如我在全年評論中提到的，儘管存在季度波動，但我們仍然對我們所服務的市場的長期前景以及我們繼續滲透這些市場的能力感到鼓舞。

Consistent with our Q3 commentary, the Fluids Systems business revenues declined 14% sequentially, primarily reflecting the anticipated pullback in the EMEA and US regions.

與我們第三季的評論一致，流體系統業務收入環比下降 14%，主要反映了 EMEA 和美國地區的預期下滑。

On the lower revenues, the segment delivered $5 million of adjusted EBITDA and a 4% adjusted EBITDA margin.

由於收入較低，該部門實現了 500 萬美元的調整後 EBITDA 和 4% 的調整後 EBITDA 利潤率。

Importantly, our fluids team's disciplined focus on working capital management led to a $25 million of further reduction in the segment's net working capital, which ended the year at $171 million with the meaningful reduction in fluids working capital.

重要的是，我們的流體團隊對營運資本管理的嚴格關注導致該部門的淨營運資本進一步減少了 2,500 萬美元，年末淨營運資本為 1.71 億美元，流體營運資本大幅減少。

We generated $28 million of free cash flow in the fourth quarter, which provided for a $13 million reduction of debt and a $6 million return of capital to shareholders through continued repurchases of our equity in the open market.

我們在第四季產生了 2,800 萬美元的自由現金流，透過在公開市場上持續回購股權，減少了 1,300 萬美元的債務，並向股東返還了 600 萬美元的資本。

We also invested $9 million of CapEx, primarily reflecting late quarter additions to our rental fleet to support our expanding rental project pipeline.

我們還投資了 900 萬美元的資本支出，主要反映了季度末我們租賃車隊的增加，以支持我們不斷擴大的租賃項目管道。

We finished the year with net debt of $$36 million and a 0.5 times net leverage ratio.

今年結束時，我們的淨債務為 3,600 萬美元，淨槓桿率為 0.5 倍。

And with that, I'll turn the call over to Gregg for his prepared remarks.

接下來，我將把電話轉給格雷格，讓他準備好要講話。

Thanks, Matthew.

謝謝，馬修。

I'll begin my remarks with the summary of our consolidated and segment level results for the fourth quarter, followed by an update on our outlook for 2024.

我將首先總結第四季度的合併和部門級業績，然後更新我們對 2024 年的展望。

The fourth quarter was highlighted by strong cash flow generation, which provided for further expansion of our rental fleet debt reduction and return of capital to shareholders.

第四季的亮點是強勁的現金流生成，這為我們進一步擴大租賃車隊債務減少和向股東返還資本提供了條件。

Total quarter revenues were generally in line with our expectations shared on our previous quarterly call with stronger than expected customer activities in international fluids markets, offsetting lower revenues from US fluids and lower industrial solutions product sales.

季度總收入基本上符合我們在上一季電話會議上的預期，國際流體市場的客戶活動強於預期，抵消了美國流體收入的下降和工業解決方案產品銷售的下降。

Industrial Solutions segment revenue was $46 million in the fourth quarter with more than 75% coming from rental and service.

第四季工業解決方案部門營收為 4,600 萬美元，其中 75% 以上來自租賃和服務。

Rental and service revenues was $36 million for the fourth quarter and 11% year-over-year decline.

第四季租賃和服務收入為 3,600 萬美元，年減 11%。

As we highlighted on our November call, customer activity in early Q4 was impacted by more pronounced hot and dry weather conditions.

正如我們在 11 月的電話會議中所強調的那樣，第四季度初的客戶活動受到更明顯的炎熱和乾燥天氣條件的影響。

We saw a steady improvement throughout the quarter and ended the year with much stronger rental utilization.

我們看到整個季度穩定改善，年底租金利用率大幅提高。

This is a very different dynamic than we faced in the prior year as the fourth quarter of 2022 was exceptionally robust, benefiting from the strength in utility infrastructure project activity, combined with the benefit of favorable weather conditions, which drove rental fleet utilization above typical levels.

這與我們去年面臨的情況截然不同，因為受益於公用事業基礎設施項目活動的強勁，再加上有利的天氣條件，2022 年第四季的表現異常強勁，使得租賃車隊利用率高於典型水平。

Direct sales, which tend to fluctuate based on timing of customer projects, declined $7 million year over year to $11 million for the fourth quarter as multiple customer project delays shifted the timing of expected sales into 2024.

直接銷售額往往會根據客戶專案的時間表而波動，第四季度年減 700 萬美元，至 1,100 萬美元，原因是多個客戶專案的延遲將預期銷售時間推遲到 2024 年。

Further the historical pattern of elevated Q4 purchases from utility customers didn't manifest this year has and these customers utilize the remaining capital budget to fulfill other needs.

此外，第四季公用事業客戶採購量增加的歷史模式今年並未顯現出來，這些客戶利用剩餘的資本預算來滿足其他需求。

On a full year basis, rental and service revenues have increased 12% reflecting growth across all major sectors while product sales were down slightly.

全年來看，租賃和服務收入成長了 12%，反映出所有主要產業的成長，而產品銷售則略有下降。

Industrial Solutions segment profitability remained strong in the fourth quarter as reflected by the segment adjusted EBITDA margin of 36%.

工業解決方案部門第四季的獲利能力依然強勁，該部門調整後的 EBITDA 利潤率為 36%。

The Fluids Systems segment generated revenue of $121 million in the fourth quarter, representing a decline of 28% versus the prior year period.

流體系統部門第四季營收為 1.21 億美元，比去年同期下降 28%。

With a $44 million decline in US land and $20 million impact from last year's divestitures, partially offset by an $18 million increase from international operations.

美國土地業務減少了 4,400 萬美元，去年資產剝離帶來了 2,000 萬美元的影響，但國際業務增加了 1,800 萬美元，部分抵消了這一影響。

Our Eastern Hemisphere contributed $63 million or 52% of our total Fluids Systems revenues in Q4.

第四季度，東半球貢獻了 6,300 萬美元，佔流體系統總收入的 52%。

The fourth quarter result reflects a sequential decline from the record Q3 results, primarily driven by the anticipated reductions in the Congo and several European markets, somewhat offset by the restart of activity in Cyprus and an increase in the APAC region.

第四季業績較創紀錄的第三季業績連續下降，主要是由於剛果和幾個歐洲市場的預期下降，但在一定程度上被塞浦路斯活動的重啟和亞太地區的成長所抵消。

On a year-over-year basis, our Eastern Hemisphere revenues improved 19%.

我們的東半球營收年增 19%。

Revenues from Canada increased 21% sequentially to $21 million in the fourth quarter, which reflects a 74% year over year improvement.

第四季來自加拿大的營收季增 21% 至 2,100 萬美元，年增 74%。

Our US operations contributed $37 million of revenue in the fourth quarter.

我們的美國業務在第四季度貢獻了 3700 萬美元的收入。

Excluding the divestitures, this reflects a 26% sequential and 54% year over year decline.

不包括資產剝離，季減 26%，年減 54%。

The sequential decline was primarily driven by the continued softening in the US market activity as well as a notable decline in the average revenue contribution from the rig service with the effects of the US market softness, we are maintaining our focus on pricing discipline and balance sheet efficiency, resulting in strong cash from US operations segment adjusted EBITDA margin was 3.9% in the fourth quarter.

環比下降主要是由於美國市場活動持續疲軟，以及受美國市場疲軟的影響，鑽機服務的平均收入貢獻顯著下降，我們仍將重點放在定價紀律和資產負債表上效率，導緻美國業務部門的現金強勁，第四季調整後EBITDA 利潤率為3.9%。

As Matthew touched on, we reduced our net working capital in the fluid systems business by $25 million in the fourth quarter, including a $14 million reduction in the US, reflecting the solid progress driving working capital efficiency.

正如馬修所談到的那樣，第四季度我們將流體系統業務的淨營運資本減少了 2,500 萬美元，其中美國減少了 1,400 萬美元，這反映出在推動營運資本效率方面取得了堅實進展。

As of the end of the year, the fluid systems business has $171 million of net working capital consisting primarily of receivables and inventory, which represents more than 80% of the segment's net assets employed.

截至年底，流體系統業務擁有 1.71 億美元的淨營運資本，主要包括應收帳款和庫存，佔該部門所用淨資產的 80% 以上。

SG&A expenses were $23.3 million in the fourth quarter of 2023, including $6 million of corporate expense.

2023 年第四季的 SG&A 費用為 2,330 萬美元，其中包括 600 萬美元的公司費用。

The decreases in SG&A and corporate office spending on both a sequential and year-over-year basis, primarily driven by the impacts of short term and long term performance based incentive programs.

SG&A 和公司辦公支出環比和同比下降，主要是由於基於短期和長期績效的激勵計劃的影響。

Interest expense decreased modestly on a sequential basis to $1.9 million for the fourth quarter, reflecting the effect of the lower overall debt balances.

第四季利息支出環比小幅下降至 190 萬美元，反映了整體債務餘額下降的影響。

Tax expense was $2.4 million in the fourth quarter as we were not able to recognize a tax benefit on the $3.5 million of impairment charges, effective tax rate was 39% year to date.

第四季的稅費為 240 萬美元，因為我們無法確認 350 萬美元減損費用的稅收優惠，今年迄今的有效稅率為 39%。

Adjusted EPS was $0.04 per diluted share in the fourth quarter compared to $0.07 in the fourth quarter of last year, reflecting the effects of lower profitability, partially offset by a 7% decline in our diluted shares outstanding.

第四季調整後每股攤薄每股收益為 0.04 美元，而去年第四季為 0.07 美元，反映了獲利能力下降的影響，但稀釋後流通股下降 7% 部分抵消了這一影響。

Operating cash flow was $36 million for the fourth quarter, while $8 million was used to fund our net CapEx with the majority once again directed toward the expansion of our Industrial Solutions rental fleet.

第四季營運現金流為 3,600 萬美元，其中 800 萬美元用於為我們的淨資本支出提供資金，其中大部分再次用於擴大我們的工業解決方案租賃車隊。

We also used $13 million to reduce debt and $6 million to fund share repurchases.

我們還使用 1300 萬美元來減少債務，並使用 600 萬美元為股票回購提供資金。

As a result of stronger than anticipated international receivable collections near the end of the year, our cash balance increased $10 million in the fourth quarter.

由於接近年底國際應收帳款收款強於預期，我們第四季的現金餘額增加了 1,000 萬美元。

We generated $28 million of free cash flow in the fourth quarter, bringing our full year free cash flow to $74 million in 93% full year cash conversion of adjusted EBITDA.

我們在第四季度產生了 2,800 萬美元的自由現金流，使全年自由現金流達到 7,400 萬美元，調整後 EBITDA 的全年現金轉換率為 93%。

Let's now turn to the business outlook.

現在讓我們轉向業務前景。

Our view on the respective markets and the opportunity remains largely unchanged.

我們對各自市場和機會的看法基本上保持不變。

For Industrial Solutions.

用於工業解決方案。

We continue to see strong fundamentals for utility and critical infrastructure spending, which we expect will provide a multiyear tailwind to support our growth plan.

我們繼續看到公用事業和關鍵基礎設施支出的強勁基本面，我們預計這將為支持我們的成長計劃提供多年的推動力。

In terms of our Q1 outlook, we expect modest sequential growth in rental and service revenues.

就我們第一季的前景而言，我們預計租賃和服務收入將出現溫和的環比成長。

And while we are pleased with the robust pipeline of opportunities on product sales, the timing of customer projects remains dependent upon permitting, supply chain and other factors for the full year 2024, we anticipate total Industrial Solutions revenues in the $230 million to $240 million range and Industrial Solutions adjusted EBITDA of $80 million to $85 million, with segment CapEx of $30 million to $35 million.

雖然我們對產品銷售機會的強勁管道感到滿意，但客戶專案的時間表仍取決於2024 年全年的授權、供應鏈和其他因素，我們預計工業解決方案總收入將在2.3 億美元至2.4 億美元之間Industrial Solutions 將 EBITDA 調整為 8,000 萬美元至 8,500 萬美元，部門資本支出為 3,000 萬美元至 3,500 萬美元。

In Fluid Systems, while the US market outlook remains somewhat challenged in the near term, our Eastern Hemisphere and Canada business units, which contributed roughly 70% of the segment's revenue in Q4, continued to perform at a high level.

在流體系統領域，雖然美國市場前景短期內仍面臨一些挑戰，但我們的東半球和加拿大業務部門在第四季度貢獻了該部門約 70% 的收入，繼續保持高水準表現。

Overall, we expect Fluid Systems revenue to improve modestly on a sequential basis in the first quarter with international growth somewhat offset by continued US softness.

總體而言，我們預計第一季流體系統收入將環比小幅改善，國際成長在一定程度上被美國持續疲軟所抵消。

At this revenue level, we expect segment adjusted EBITDA margins to improve toward the mid-single digits benefiting from international operations.

在此收入水準上，我們預計受益於國際業務，部門調整後的 EBITDA 利潤率將提高至中個位數。

We anticipate corporate office expense will remain fairly in line with our 2023 exit rate for the foreseeable future as we continue to advance the strategic process for the Fluids segment.

我們預計，隨著我們繼續推動流體部門的策略進程，在可預見的未來，公司辦公室費用將與我們 2023 年的退出率保持相當一致。

Meanwhile, we expect interest expense and tax rates to remain fairly in line with current levels until we conclude the fluid process in terms of capital allocations.

同時，我們預計利息支出和稅率將與當前水準保持相當一致，直到我們完成資本配置方面的流動過程。

We expect our 2024 net capital investments will remain dependent upon our projected rental revenue growth rate.

我們預計 2024 年的淨資本投資將仍取決於我們預期的租金收入成長率。

Beyond our continued organic growth investments in Industrial Solutions, we expect our 2024 cash generation will be primarily used to build liquidity or inorganic growth opportunities following the fluids divestiture or return of capital to shareholders through our progressive programmatic share repurchase program.

除了我們對工業解決方案的持續有機成長投資之外，我們預計2024 年的現金產生將主要用於在流體剝離或透過我們漸進式計劃性股票回購計劃向股東返還資本後建立流動性或無機增長機會。

And with that, I'd like to turn the call back over to Matthew for his concluding remarks.

說到這裡，我想把電話轉回給馬修，讓他做總結發言。

Thanks, Gregg.

謝謝，格雷格。

As we leave 2023 and look ahead to 2024, I'm pleased with the progress we've made to drive organic commercial growth across the enterprise while continuing to build a more efficient competitive business.

當我們告別 2023 年並展望 2024 年時，我對我們在推動整個企業的有機商業成長、同時繼續打造更高效、更具競爭力的業務方面所取得的進展感到高興。

Industrial Solutions, once again delivered year-over-year growth in revenue, EBITDA and margin realization.

工業解決方案再次實現了收入、EBITDA 和利潤率的同比增長。

With our ongoing expansion in the multibillion-dollar global worksite access market, we remain optimistic about the longer-term prospects for our business.

隨著我們在價值數十億美元的全球工地通道市場的持續擴張，我們對業務的長期前景保持樂觀。

In Fluids Systems our international operations continued to deliver significant year-over-year growth in revenue and profitability, offsetting declines in US land markets with the total fluids segment delivering the highest return on net assets since 2019.

在流體系統領域，我們的國際業務收入和盈利能力繼續實現同比顯著增長，抵消了美國陸地市場的下滑，整個流體部門實現了 2019 年以來最高的淨資產回報率。

We remain proud of our global fluids business as they continue to navigate the changing global landscape, streamlining the US operations and overhead structures while enhancing support capabilities within strategic international markets and maintaining a laser focus on safety, exemplary customer service and working capital efficiency.

我們仍然為我們的全球流體業務感到自豪，因為他們繼續適應不斷變化的全球格局，簡化美國業務和管理結構，同時增強戰略性國際市場的支持能力，並始終高度關注安全、模範客戶服務和營運資金效率。

Our priorities to 2024 are clear.

我們到 2024 年的優先事項很明確。

Within our Industrial Solutions business, we're prioritizing geographic expansion within the US across a higher growth regional footprint, utilizing our unique position as a vertically integrated manufacturer of competent matting to expand our fleet and drive share gains within our existing markets.

在我們的工業解決方案業務中，我們優先考慮在美國境內進行地域擴張，以實現更高增長的區域足跡，利用我們作為優質地墊垂直整合製造商的獨特地位來擴大我們的機隊並推動現有市場的佔有率增長。

We will continue to manage to our return and margin targets carefully balancing pricing and fleet utilization as we evolve our project mix towards larger, longer duration projects that provide more stable revenues, but more competitive pricing dynamics.

我們將繼續管理我們的回報和利潤目標，仔細平衡定價和機隊利用率，將我們的項目組合發展為規模更大、持續時間更長的項目，提供更穩定的收入，但更具競爭力的定價動態。

We'll also continue to expand the usage of alternative and recycled materials in our raw materials mix, further cementing our circular plastics credentials and optimizing manufacturing costs without impacting quality appearance or design capability of our products.

我們也將繼續擴大原料組合中替代材料和回收材料的使用，進一步鞏固我們的循環塑膠資格並優化製造成本，而不影響我們產品的品質外觀或設計能力。

While volume growth within this business isn't linear, given the factors of permitting and project timing, we remain bullish on the multiyear demand outlook, given the pace of new investments within our energy and infrastructure markets and specifically within the utility transmission market, considering the growth in spend in this space that I referred to in my opening comments.

儘管考慮到許可和專案時機等因素，該業務的銷售成長不是線性的，但鑑於我們的能源和基礎設施市場，特別是公用事業傳輸市場的新投資步伐，我們仍然看好多年需求前景，考慮到我在開場白中提到的這個領域的支出成長。

As we expand our already meaningful relationships across the country with asset owners and their construction partners.

隨著我們在全國範圍內拓展與資產所有者及其建設合作夥伴本已有意義的關係。

We believe this will provide strong long-term growth and a reduction in quarter-to-quarter volume swings such as we experienced in the fourth quarter.

我們相信，這將帶來強勁的長期成長，並減少季度與季度之間的銷售波動，就像我們在第四季度經歷的那樣。

We believe our matting portfolio includes most flexible, lightweight and durable solution in the market positioning us to win where we compete.

我們相信，我們的地墊產品組合包括市場上最靈活、輕巧且耐用的解決方案，使我們能夠在競爭中獲勝。

As it pertains to our Fluid Systems business as strategic review remains on track.

由於它與我們的流體系統業務有關，因此戰略審查仍在進行中。

Given the scope of our international fluids operations diligence is time-intensive.

鑑於我們國際流體業務的範圍，盡職調查非常耗時。

However, we're making good progress with our partners at resolved to move the process forward and continue to anticipate it will be concluded around mid-2024.

然而，我們正在與合作夥伴取得良好進展，決心推動這一進程，並繼續預計該進程將在 2024 年中期左右完成。

Finally, with respect to capital allocation.

最後，關於資本配置。

We continued to optimize our balance sheet while investing in the expansion of our matting fleet and service capabilities as we move closer towards becoming a pure-play industrial solutions business.

我們繼續優化資產負債表，同時投資擴大地墊機隊和服務能力，朝著成為純粹的工業解決方案業務的目標邁進。

We see the opportunity to become a strategic acquirer of assets within our existing scope of capabilities, evaluating adjacent markets that enhance our unique value proposition with customers while supporting a path towards incremental margin expansion over time.

我們看到了在現有能力範圍內成為資產策略收購者的機會，評估鄰近市場，增強我們對客戶的獨特價值主張，同時支持隨著時間的推移逐步實現利潤率的增量擴張。

In closing, I want to thank our shareholders for their ongoing support our employees for their dedication to the business, including their commitment to safety and compliance and our customers for their ongoing partnerships.

最後，我要感謝我們的股東的持續支持，感謝我們的員工對業務的奉獻，包括他們對安全和合規性的承諾，以及我們的客戶持續的合作關係。

And with us, we'll open the call for questions.

我們將與我們一起開始提問。

(Operator Instructions) Aaron Spychalla with Craig-Hallum.

（操作員說明）Aaron Spychalla 和 Craig-Hallum。

Yes, good morning, Matt and Greg.

是的，早上好，馬特和格雷格。

Thanks for taking the questions.

感謝您提出問題。

Neil, first, first for me on the industrial business.

尼爾，首先，首先對我來說是工業業務。

I know we had a tough comp year over year with weather, but could you give a little more details on some of the project push-outs?

我知道我們年復一年地受到天氣的影響，但您能否提供一些有關項目推出的更多細節？

Sounds like it was supply chain permitting was that broad-based or just a handful of projects have those started in the first quarter?

聽起來供應鏈允許的是，第一季啟動的專案是基礎廣泛還是只有少數專案？

And then maybe just discuss how the pipeline sits today compared to the past few quarters as we think about that growth for 2024?

然後，當我們考慮 2024 年的成長時，也許只是討論一下與過去幾個季度相比，今天的管道狀況如何？

Yes, thanks.

對了謝謝。

On the Q4 shifts, it was really two specific projects at the end of the day one was related primarily to steel products not being available for the full scope of the project, which caused them to push that down as it as it stands to its timing.

在第四季度的輪班中，這實際上是兩個具體項目，其中一個主要與該項目的整個範圍內無法提供鋼鐵產品有關，這導致他們按其時間安排推遲了該項目。

It looks like the utility moved on to other projects and are now planning that for a little later in this year.

看來該公用事業公司已轉向其他項目，目前正計劃在今年稍後進行。

So it has not yet commenced the other project, was it related to a local permitting issue that caused that delay and that permitting issues is also still not resolved.

因此，它尚未開始另一個項目，是否與導致延誤的當地許可問題有關，並且許可問題仍未解決。

So not necessarily what I call a systemic issue related to two specific projects in this case as it pertains to pipeline.

因此，在這種情況下，不一定是我所說的與兩個特定項目相關的系統性問題，因為它與管道有關。

If we look at where we are on our quota volume this time this year versus last, we're seeing sort of strong mid to high teens growth in our quote rates, which is really underpinning the confidence that we referred to in the call.

如果我們看看今年與去年相比我們的配額量，我們會發現我們的報價出現了中高位的強勁增長，這確實支撐了我們在電話會議中提到的信心。

All right, then thanks for the color there.

好吧，謝謝你的顏色。

And then I appreciate the marketing margin guidance for the year, um looks right around the mid-30s, but it's down slightly a little bit year over year.

然後我很欣賞今年的行銷利潤指引，嗯看起來大約在 30 多歲左右，但比去年同期略有下降。

Can you just talk about how you're thinking about price versus volume and mix in 2024 especially with lumber prices where they are and maybe how recycling factors into that is that starts to grow as a percentage of your it all started.

您能否談談您如何考慮 2024 年的價格與數量和組合，特別是考慮到木材價格，以及回收因素如何隨著您的一切開始的百分比開始增長。

And I know I've met you add to it, but I think that the growth that we see in 2024, I think it was going to be much more so driven by volume expansion as we penetrate the markets here.

我知道我見過你，但我認為我們在 2024 年看到的成長將更多地受到我們滲透這裡市場時銷量擴張的推動。

As Matthew mentioned in his comments, we are intentionally pursuing some of these longer duration projects with and obviously coming at a different price point, you're kind of trading utilization.

正如馬修在他的評論中提到的那樣，我們有意追求一些持續時間較長的項目，並且顯然以不同的價格點進行交易，這是一種交易利用。

I mean, predictability for a little bit of price I wouldn't expect price to be a big movement there, probably kind of gradually reduce as we progress through the year and make that progress the longer term projects.

我的意思是，對於一點點價格的可預測性，我不認為價格會大幅波動，隨著我們在這一年中取得進展並在長期專案中取得進展，價格可能會逐漸降低。

Yeah, I think you got it.

是的，我想你明白了。

All right.

好的。

And then just maybe one more.

然後也許還有一個。

I know you didn't guide for fluids explicitly as you have in the past, but just with the decline in the fourth quarter relative to the past few quarters.

我知道你們沒有像過去那樣明確指導液體攝取量，只是第四季相對於過去幾季的下降。

Are there are there any other less profitable areas that we need to still step away from?

還有其他利潤較低的領域是我們需要避免的嗎？

I just want to understand a little more on what drives that drove the 4Q performance and how we should be thinking about that business from here?

我只是想更多地了解推動第四季度業績的驅動因素以及我們應該如何從這裡考慮該業務？

No major changes in the overall business makeup are business changes and we're obviously we're in the midst of the process.

整體業務組成沒有重大變化，這不算是業務變化，而且我們顯然正處於這個過程之中。

And so continuing to do kind of the ticket, the common sense actions to streamline the overall organization and really adjust to that mix shift.

因此，繼續採取一些常識性的行動來簡化整個組織並真正適應這種混合轉變。

As you know, we kind of framed out.

如你所知，我們有點陷害。

The C. has shifted pretty dramatically over the past year with now 70% of our revenues here coming from come from the international piece of the business.

C. 在過去的一年裡發生了相當大的變化，現在我們 70% 的收入來自國際業務。

So I think that as we look in the near term, I don't see any major changes and that is continue to have the market dynamics of international is where we see the greatest strength and the US market and continues to be struggling as a general market as a whole.

因此，我認為，從短期來看，我沒有看到任何重大變化，國際市場的動態仍然是我們看到的最大優勢，而美國市場作為一個整體仍然在苦苦掙扎。市場作為一個整體。

All right.

好的。

Thanks for taking the questions.

感謝您提出問題。

I'll turn it over.

我會把它翻過來。

Amit Dayal, H.C. Wainwright.

阿米特·達亞爾 (Amit Dayal)，H.C.溫賴特。

Thank you and good morning, everyone.

謝謝大家，早安。

One was on the industrial side or the industrial outlook, is that supported by some concrete backlog?

一個是工業方面或工業前景，這是否得到了一些具體積壓訂單的支持？

Or are we just sort of a using our pipeline to do you don't give that out?

或者我們只是利用我們的管道來讓你不把它洩漏出去？

Yes, Amit, it's really pipeline driven.

是的，阿米特，它確實是管道驅動的。

I think in this business, some backlog is a harder concept for us.

我認為在這個行業，一些積壓對我們來說是一個更難的概念。

We just look at what our budgeted volumes off with various times throughout the year.

我們只是看看一年中不同時間的預算量。

They typically tend to be more on a here and now to our project activities that we are actively quoting on in the pipeline.

他們通常更傾向於關注我們正在積極引用的專案活動。

So it's really just looking at pipeline volume changes year over year and period over period, which as I so the center and we are looking at high 10s sort of growth in our quarter volumes and a fairly stable conversion rate on those, which is really driving the which is driving the forward guidance.

因此，這實際上只是關注管道銷量逐年變化和一段時期內的變化，正如我所言，我們正在關注季度銷量的 10 多倍增長，以及相當穩定的轉化率，這確實在推動這正在推動前瞻性指導。

And just adding to that list, as we saw in Q4, even when you do have from orders lock in projects, we find that the timing of project starts slide because they are dependent on some other things that are beyond our control.

正如我們在第四季度看到的那樣，即使您確實有訂單鎖定項目，我們也發現項目的時間開始下滑，因為它們依賴我們無法控制的其他一些事情。

Yes, I mean this thinking there about a year ago, they slid in our favor and we had a really strong Q4 with only blocking up in the quarter this year, it appears that that shouldn't be repeated.

是的，我的意思是大約一年前的這種想法，他們對我們有利，我們有一個非常強勁的第四季度，只在今年的季度受阻，看來這種情況不應該重複。

So it's there are swings and roundabouts.

所以這裡有鞦韆和迴旋處。

Understood.

明白了。

Thank you for that.

謝謝你。

And the CapEx that's going on into the industrial segment, is that mainly going into support the rental business for some other projects, you're primarily supporting fleet expansion.

進入工業領域的資本支出主要用於支援其他一些項目的租賃業務，您主要支持機隊擴張。

And there are some there are some maintenance CapEx needs at the plants, but the primary focus is on rental fleet expansion as we looked at look to grow those geographic regions forward and continue to penetrate new customers in the space.

有些工廠需要一些維護資本支出，但主要重點是租賃車隊的擴張，因為我們著眼於擴大這些地理區域並繼續滲透該領域的新客戶。

Again, in rough round numbers roughly 75% of our of our CapEx this year, Wes being driven by that and supporting that growth of that rental fleet.

同樣，粗略計算，我們今年資本支出的大約 75% 是由 Wes 推動的，並支持租賃機隊的成長。

So as we look forward, that's the growth rate in the rental fleet is going to be kind of a key driver of our level of CapEx in the business.

因此，正如我們展望的那樣，租賃車隊的成長率將成為我們業務資本支出水準的關鍵驅動力。

That's good to know.

很高興知道這一點。

And then on the fluids business guidance would assume I mean regarding financing on potentially on getting some interest, I think should we assume that there is no sort of formal on bids on the business here?

然後，關於流體業務指南，我的意思是關於可能獲得一些利息的融資，我認為我們是否應該假設這裡沒有正式的業務投標？

Without getting into too many details on exactly where the process is.

無需詳細了解流程的具體位置。

We've followed what I'll frame up as a typical on marketing process.

我們遵循了我所描述的典型行銷流程。

As we had mentioned previously, that process launched in September and then you go through your Phase 1, Phase 2 diligence, as Matthew mentioned in his comments, as they can kind of naturally expect when you look at the international complexities and the breadth of the operations, the diligence phase takes on a reasonable amount of time.

正如我們之前提到的，該流程於9 月啟動，然後您將經歷第一階段、第二階段的盡職調查，正如馬修在他的評論中提到的那樣，因為當您看到國際的複雜性和廣泛性時，他們可以自然地預期營運中，盡職調查階段需要合理的時間。

But having said that, we're still seeing kind of a midyear '24 expectation for it to get the process essentially wrap.

但話雖如此，我們仍然預計 24 年年中流程將基本結束。

Thanks a lot, guys.

非常感謝，夥計們。

Appreciate taking my question and good afternoon, and thank you.

感謝您提出我的問題，下午好，謝謝。

Bill Dezellem, Tieton Capital.

比爾·德澤勒姆，泰頓資本。

Thank you.

謝謝。

You had mentioned that in 2023 that 75% of your CapEx was from or directed towards rental fleet expansion.

您曾提到，到 2023 年，您 75% 的資本支出來自或直接用於租賃機隊擴張。

Do you anticipate that same ratio this year?

您預計今年的比例是否相同？

I would not expect any major changes in that.

我不希望這方面有任何重大變化。

Yes, I think I think you still have at least 75% or so of our CapEx will be in the form of the fleet expansion.

是的，我認為我們至少 75% 左右的資本支出仍然會以機隊擴張的形式出現。

And directionally what geographic regions are you looking to expand in?

您希望在哪些地理區域進行擴張？

And we're really we see some nice growth in sort of the Midwest and North and Northwest markets opening up as well as a lot of continued activity within our more traditional markets in the Southeast and Southwest.

我們確實看到中西部、北部和西北市場的開放出現了一些良好的成長，東南部和西南部更傳統的市場也出現了許多持續的活動。

But in terms of new activity I think really it's a Midwest focus.

但就新活動而言，我認為這確實是中西部的重點。

And then once you have accomplished what you're referencing in the Midwest and the Northwest parts of the rest of the country, would you still be underpenetrated in?

然後，一旦您在美國其他地區的中西部和西北地區完成了您所提到的目標，您是否仍然滲透不足？

Yes, I cannot describe it is underpenetrated.

是的，我無法形容它的滲透不足。

I think it's really just we can move fleet fairly efficiently and we can move crews fairly efficiently.

我認為這實際上只是我們可以相當有效地調動艦隊，我們可以相當有效地調動船員。

What we want to do is as we see sustained activity levels set up, set up more permanent establishments there.

我們想要做的是，當我們看到持續的活動水準建立時，在那裡建立更多的常設機構。

It's really going to be a case of using our logistics efficiency to service those, those project-specific it areas versus sustained a level of activity in the geographic area or put another way to say that as we cover the country now.

這實際上是利用我們的物流效率來服務那些特定項目的IT領域，而不是在地理區域內維持一定程度的活動，或者換句話說，我們現在涵蓋全國。

But as we looked at where we want to have more established presences for what we see is more sustained activity longer term that they're the areas where we're looking to move fleet to.

但當我們考慮到我們希望在哪些地區建立更成熟的存在時，我們認為從長遠來看，這些地區的活動更加持續，我們希望將機隊轉移到這些地區。

Understood.

明白了。

So there aren't any areas and countries that you are just it's not it not in at this point or at least once you get into the Northwest and Midwest?

那麼，沒有任何地區和國家是您所在的，不是現在或至少在您進入西北和中西部之後嗎？

That's right.

這是正確的。

And if I just think about a map of the United States, the Northwest and the Midwest encompass a really large geographic area.

如果我只考慮美國地圖，西北和中西部涵蓋了一個非常大的地理區域。

Just how does that relate to the size of revenue possibility to geography equal revenue with these that transmission lines?

這與地理上的收入可能性大小與輸電線路的收入有什麼關係？

Or is it really more tied for population bases?

或者它真的與人口基數更相關嗎？

Yes, it's really -- I mean, it's really more tied to what activity is going on those spaces in terms of renewable tie-ins is a renewable type project time at times, is it just infrastructure upgrades?

是的，這確實是 - 我的意思是，它確實與這些空間中正在進行的可再生能源捆綁活動密切相關，有時是可再生能源類型的項目時間，這只是基礎設施升級嗎？

Is that unite into state connections, what the activity levels that support the kind of the supply goals of the utilities in those geographies.

是否聯合成國家聯繫，支持這些地區公用事業供應目標的活動水準是多少。

Typically higher populations, high demands that would drive that kind of thing.

通常更高的人口、更高的要求會推動這種事情。

But I think it's more generally related to what's actually going on in those markets from a of alternative supply and then a reliability perspective.

但我認為，從替代供應和可靠性的角度來看，這更普遍地與這些市場的實際情況有關。

Yes, you do have some issue some geographies that have more of an issue with age aging of their infrastructure, so therefore need for them to harden the grid.

是的，你確實遇到了一些問題，一些地區的基礎設施老化問題更多，因此需要他們加強電網。

Sir, so what geographies are in need of grid hardening the most.

先生，那麼哪些地區最需要網格強化呢？

And then second is, is our perception correct that the renewables, specifically wind and solar are most active in terms of new installations in the Midwest or basically from the Mississippi West?

其次，我們認為再生能源，特別是風能和太陽能在中西部或基本上來自密西西比州西部的新裝機方面最活躍的看法是否正確？

Yes.

是的。

Yes, Bill, I think on a project basis, the coal out of the focus in that Midwest areas where we see the activity levels really supporting our push into that space as it pertains to project activities, specifically around the renewable times and et cetera.

是的，比爾，我認為在項目基礎上，煤炭不再是中西部地區的焦點，我們看到這些地區的活動水平真正支持我們進入該領域，因為它與項目活動有關，特別是在可再生能源時代等領域。

I think as you've called out the geographies and where you see those projects, that's where we're going to be.

我認為，正如您所指出的地理位置以及您在哪裡看到這些項目一樣，這就是我們要去的地方。

In the grid hardening where it's most needed?

在網格強化中哪裡最需要它？

I think as you've seen and you know, as we move through the southeast and the southwest regions where you've got more exposure to extreme weather events, particularly in the form of hurricanes and things of that nature.

我認為正如您所看到和知道的，當我們穿過東南部和西南部地區時，您會更多地接觸到極端天氣事件，特別是颶風和類似性質的事件。

But generally, as Gregg touched on, I think the grid across the country is kind of at the at or edge of its age limit.

但總的來說，正如格雷格所說，我認為全國範圍內的電網都處於其年齡限制的邊緣。

So there's a full-court press here too, to upgrade that to meet the reliability standards and the capacity requirements that society needs.

因此，這裡也有一個全場新聞發布會，以對其進行升級以滿足可靠性標準和社會所需的容量要求。

Thank you.

謝謝。

And then one more a totally different direction here.

然後這裡又是一個完全不同的方向。

Would you please detail what you hinted at relative to quote rate increase for the asset in that business and provide us more perspective on that, please?

您能否詳細說明您所暗示的相對於該業務資產報價上漲的內容，並為我們提供更多對此的看法？

And sure.

當然。

I mean that as we look at our quoting activity is which we're capturing in our systems, and we see the level of that from a volume perspective of what's out there in the marketplace.

我的意思是，當我們查看我們的系統中捕獲的報價活動時，我們會從市場上的數量角度看到報價活動的水平。

We look year on year and we see that at a point in time this year, the volume of quotes that we've been asked to participate in is up in that sort of 15% to 19% year over year, which gives us confidence that the longer term demand and the activity levels lining up with the macro themes you're hearing in terms of utilities, expanding CapEx budgets and talking about the need to upgrade their infrastructure.

我們逐年查看，發現在今年的某個時間點，我們被要求參與的報價量同比增長了 15% 至 19%，這讓我們有信心長期需求和活動水平與您在公用事業、擴大資本支出預算和談論升級基礎設施的必要性方面聽到的宏觀主題相一致。

We're seeing that flow through into project requests.

我們看到這種情況逐漸滲透到專案請求中。

And what we've kind of alluded to in the call is the supply chain specific or permit and specific the timing of those is becoming less easy to predict.

我們在電話中提到的是供應鏈特定或許可和特定的時間變得越來越難以預測。

So hopefully that covered what you're after.

希望這能滿足您的需求。

Thank you very much.

非常感謝。

Aaron Spychalla, Craig-Hallum.

亞倫·斯皮查拉，克雷格·哈勒姆。

Yes, hi, again.

是的，嗨，又來了。

Just to say maybe a couple others for me.

只是對我來說也許還有其他幾個。

Um on the free cash flow, can you just maybe talk about how you see that trending in 2024 some of the moving pieces there.

嗯，關於自由現金流，您能否談談您如何看待 2024 年的一些變化趨勢。

I mean, you had a really strong year in 2023 from working capital benefits.

我的意思是，2023 年的營運資金效益非常強勁。

Just how does that look as we head into 2024?

進入 2024 年，情況會如何？

Yes the working capital benefit we saw in '23 that provided a pretty significant tailwind, and that's really the overall revenue driven from because as I look to 2024, what I would say is the fundamental model.

是的，我們在 23 年看到的營運資本效益提供了相當大的推動力，這確實是整體收入的驅動力，因為當我展望 2024 年時，我想說的是基本模型。

You still see strong on free cash flow generation.

您仍然看到自由現金流產生的強勁勢頭。

The one thing that would work at that as a headwind to that is if you do have a very sharp growth rate in the revenues, that would actually that would consume working capital and work against you.

對此不利的一件事是，如果你的收入確實有非常急劇的成長率，那實際上會消耗營運資金並對你不利。

But absent that, we see a solid free cash flow generation for the year.

但如果沒有這一點，我們預計今年將產生穩定的自由現金流。

Q1, I would say I would expect that to be somewhat muted in part because we had a very strong Q4, Q1, you also have certain impact of like payout of your annual incentives.

第一季度，我想說的是，我預計這種情況會減弱，部分原因是我們第四季、第一季的表現非常強勁，您的年度獎勵支出也有一定的影響。

So that kind of works against you as well.

所以這也會對你不利。

So I would expect kind of a muted free cash flow generation here in Q1, but solid for the year.

因此，我預計第一季的自由現金流量會減弱，但今年會很穩定。

Got it.

知道了。

Thanks.

謝謝。

And then just maybe one last one on the 800 series launch, just maybe an update on the progress there?

然後也許只是關於 800 系列發布的最後一個，也許只是關於那裡的進展的更新？

How has uptake been given the performance benefits?

如何獲得性能優勢？

And just is that something that kind of helps accelerate growth some given kind of the value proposition there.

這只是某種有助於加速某種特定價值主張的成長的東西。

Yes.

是的。

And on the on the 800 series, we've deployed the majority of that product into our internal fleet.

在 800 系列上，我們已將大部分產品部署到我們的內部機群中。

So where we're seeing the transportation advantages from the lighter weight in our own internal on fleet use.

因此，我們在自己的內部車隊使用中看到了重量更輕的運輸優勢。

And so really that's what we wanted to do to kind of put that put that product to work in our own fleet.

事實上，這就是我們想要做的，讓產品在我們自己的車隊中發揮作用。

First and then look to expand that and to customers into this year and beyond.

首先，然後尋求將其擴展到今年及以後的客戶。

So I'd say it's all it's all going on track.

所以我想說，一切都在邁向正軌。

The performance of the product as we predicted and expected is performing like a traditional Dura-Base product with just that, that white advantage that's really helping on the trends patient side.

該產品的性能正如我們預測和預期的那樣，與傳統的 Dura-Base 產品一樣，具有白色優勢，這對趨勢患者方面確實有幫助。

Great.

偉大的。

Thanks for taking the questions.

感謝您提出問題。

Appreciate it again.

再次欣賞一下。

Yes, that will conclude our time for the question and answer session.

是的，我們的問答時間到此結束。

I would now like to turn the conference back to Mr. Gregg Piontek for any closing remarks.

現在我想請 Gregg Piontek 先生發表閉幕詞。

You may conclude the call today.

您今天可以結束通話。

Should you have any questions, please reach out to us using our e-mail at investors at newpark.com, and we look forward to speaking with you again next quarter.

如果您有任何疑問，請使用我們的投資者電子郵件地址 newpark.com 與我們聯繫，我們期待下季度再次與您交談。

And that will conclude today's conference.

今天的會議就到此結束。

Thank you for your participation and you may now disconnect.

感謝您的參與，您現在可以斷開連接。