Quanex Building Products Corp (NX) 2024 Q3 法說會逐字稿

Good day, and thank you for standing by, and welcome to the Q3 2024 Quanex Building Products Corporation earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持，歡迎參加 Quanex 建築產品公司 2024 年第三季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Scott Zuehlke, Senior Vice President, CFO and Treasurer. Please go ahead.

現在我想將會議交給今天的發言人，高級副總裁、財務長兼財務主管 Scott Zuehlke。請繼續。

Thanks for joining the call this morning. On the call with me today is George Wilson, our President, Chairman and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures.

感謝您參加今天早上的通話。今天與我通話的是我們的總裁、董事長兼執行長喬治威爾森 (George Wilson)。本次電話會議將包含前瞻性陳述以及對非公認會計準則措施的一些討論。

Forward looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

本次電話會議和我們的收益發布中討論的前瞻性陳述和指導是基於當前的預期。實際結果或事件可能與此類聲明和指導有重大差異，Quanex 不承擔更新或修改任何前瞻性聲明以反映新資訊或事件的義務。

For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures. Please see our earnings release issued yesterday and posted to our website.

有關我們的前瞻性聲明免責聲明的更詳細說明以及非公認會計原則衡量標準與最直接可比較的公認會計原則衡量標準的調節。請參閱我們昨天發布並發佈到我們網站上的收益報告。

I'll now turn the call over to George for his prepared remarks.

現在我將把電話轉給喬治，聽他準備好講話。

Thanks, Scott, and good morning to everyone joining the call. Today, I'll be providing an overview of our quarterly performance, the state of our served markets and our perspective on the macro-economic environment.

謝謝斯科特，祝所有加入電話會議的人早安。今天，我將概述我們的季度業績、我們所服務的市場的狀況以及我們對宏觀經濟環境的看法。

Additionally, I'll discuss our recent acquisition of Tyman, including our integration plans and expectations moving forward. Overall, we are satisfied with our operational performance as we exceeded consensus expectations across all metrics.

此外，我將討論我們最近對泰曼的收購，包括我們的整合計劃和未來的期望。總體而言，我們對我們的營運績效感到滿意，因為我們在所有指標上都超出了共識預期。

Despite a challenging demand environment, volumes for the third quarter of this year exceeded those of the second quarter, reinforcing our prior comments about a return to a more traditional seasonality pattern for orders.

儘管需求環境充滿挑戰，但今年第三季的銷售量超過了第二季度，這強化了我們先前關於訂單回歸更傳統季節性模式的評論。

Scott will provide a more detailed analysis. But on a consolidated basis, revenue decreased by 6.4% in the third quarter compared to the same period last year and adjusted EBITDA fell by 13.2%. Although softer than the prior year these results align with our expectations and our previous comments on the cadence for the third quarter.

斯科特將提供更詳細的分析。但綜合來看，第三季營收較去年同期下降6.4%，調整後EBITDA下降13.2%。儘管比去年疲軟，但這些結果符合我們的預期以及我們先前對第三季節奏的評論。

In our served markets and across all geographic regions consumer confidence remains somewhat low due to macro related uncertainty. While we expect the Fed to cut interest rates before the end of the calendar year. These cuts are likely to be more beneficial for the 2025 build season rather than having a significant impact in the current year.

在我們服務的市場和所有地理區域，由於宏觀相關的不確定性，消費者信心仍然較低。雖然我們預計聯準會將在年底前降息。這些削減可能對 2025 年的建設季節更有利，而不是對今年產生重大影響。

Even with relatively soft orders resulting from this low consumer confidence. The Quanex team has continued to generate solid free cash flow and remains focused on operational improvements. This financial stability has enabled us to invest in future organic growth opportunities.

即使由於消費者信心低迷導致訂單相對疲軟。Quanex 團隊繼續產生穩定的自由現金流，並繼續專注於營運改善。這種財務穩定性使我們能夠投資於未來的有機成長機會。

These investments include an expansion of mixing capacity for our specialty sealants product lines. The introduction of new products in our UK vinyl extrusion business and the funding of several operational improvement projects for our spacer business. All these initiatives are expected to bear fruit as we move into 2025 and beyond.

這些投資包括擴大我們的特殊密封劑產品線的混合能力。在我們的英國乙烯基擠出業務中推出新產品，並為我們的墊片業務的多個營運改進項目提供資金。隨著我們進入 2025 年及以後，所有這些舉措預計將取得成果。

Moving on to an update on our recent acquisition of Tyman. We were pleased to announce the successful closure of this transformational deal on August 1. We look forward to creating a new and improved company that leverages the strengths of both organizations.

接下來介紹我們最近收購泰曼的最新情況。我們很高興地宣布這項轉型交易已於 8 月 1 日成功完成。我們期待創造一家新的、改進的公司，充分利用兩個組織的優勢。

Shareholder approval for the transaction was overwhelmingly positive on both sides, with a 99% four vote from the Quanex shareholders and an 86% four vote from time and shareholders. This strong support underscores the solid financial and strategic rationale behind this acquisition.

雙方股東均以壓倒性的積極態度批准了這筆交易，Quanex 股東以 99% 的四票支持，Time and 股東以 86% 的四票支持。這種強而有力的支持凸顯了此次收購背後堅實的財務和策略理由。

Once the deal was finalized, we hit the ground running by continuing to work closely with our integration consultants, while also engaging with the legacy Tyman team. We set up a full-time integration management office that includes cross-functional leaders from both legacy companies, and we are working quickly to establish a new organizational structure that is scalable and will drive us successfully into the future.

交易最終確定後，我們立即開始與我們的整合顧問密切合作，同時也與泰曼的傳統團隊合作。我們設立了一個全職整合管理辦公室，其中包括來自兩家傳統公司的跨職能領導者，我們正在迅速努力建立一個可擴展的新組織結構，這將推動我們成功走向未來。

Our integration management teams are working collaboratively both to capture identified synergies and to identify additional achievable synergies that we may not have previously understood. The progress made to date reinforces our confidence in achieving our stated goal of $30 million in cost synergies within two years.

我們的整合管理團隊正在協同工作，以捕捉已確定的協同效應，並確定我們以前可能不了解的其他可實現的協同效應。迄今為止的進展增強了我們在兩年內實現 3000 萬美元成本協同效應的既定目標的信心。

We plan to unveil our new organizational structure publicly in early calendar 2025. And moving forward, we plan to provide quarterly updates on our progress towards achieving these synergies. Additionally, we are excited about the opportunities for new product development and system improvements with our expanded capabilities in the window and door market manufacturing everything except the glass, we will challenge our development and engineering teams to leverage this product breadth to create new innovative solutions that add value and reduce cost for our customers.

我們計劃在 2025 年初公開公佈我們的新組織架構。展望未來，我們計劃每季提供有關實現這些協同效應的進展的最新資訊。此外，我們對新產品開發和系統改進的機會感到興奮，因為我們在門窗市場製造除玻璃以外的所有產品的能力不斷擴大，我們將挑戰我們的開發和工程團隊，利用這一產品廣度來創建新的創新解決方案，為我們的客戶增加價值並降低成本。

In summary, we are pleased with the operational foundation we've established and believe the company is well positioned to navigate any market condition regardless of the macro-economic dynamics. The Tyman acquisitions has enhanced our scale and product depth.

總之，我們對我們所建立的營運基礎感到滿意，並相信無論宏觀經濟動態如何，公司都能夠很好地應對任何市場狀況。泰曼收購擴大了我們的規模和產品深度。

Our combined team is actively engaged in the integration process, and I'm confident that we will leverage the strengths of both legacy companies to create something greater than either company standing alone. We are optimistic about the future and confident in our ability to achieve above-market growth while creating value for our shareholders.

我們的合併團隊積極參與整合過程，我相信我們將利用兩家傳統公司的優勢，創造出比任何一家公司都更偉大的東西。我們對未來感到樂觀，並對我們在為股東創造價值的同時實現高於市場的成長的能力充滿信心。

I'll now turn the call over to Scott, who will discuss our financial results in more detail.

我現在將把電話轉給斯科特，他將更詳細地討論我們的財務表現。

Thanks, George. On a consolidated basis, we reported net sales of $280.3 million during the third quarter of 2024, which represents a decrease of 6.4% compared to $299.6 million during the third quarter of 2023. The decrease was mostly attributable to softer market demand across all operating segments.

謝謝，喬治。在合併基礎上，我們報告 2024 年第三季的淨銷售額為 2.803 億美元，與 2023 年第三季的 2.996 億美元相比下降了 6.4%。下降的主要原因是所有營運部門的市場需求疲軟。

Net income decreased to $25.4 million or $0.77 per diluted share for the three months ended July 31, 2024, compared to $31.7 million or $0.96 per diluted share for the three months ended July 31, 2023. After adjusting for onetime items, net income decreased to $24.2 million or $0.73 per diluted share for the quarter compared to $31.9 million or $0.97 per diluted share for the same period of last year.

截至2024年7月31日止三個月，淨利潤下降至2540萬美元，即稀釋後每股0.77美元，而截至2023年7月31日止三個月，淨利潤為3170萬美元，即稀釋後每股0.96美元。在一次性項目進行調整後，本季淨利潤降至 2,420 萬美元，即稀釋後每股收益 0.73 美元，而去年同期淨利潤為 3,190 萬美元，即稀釋後每股收益 0.97 美元。

On an adjusted basis, EBITDA for the quarter decreased to $42 million compared to $48.5 million during the same period of last year. The decrease in adjusted earnings for the three months ended July 31, 2024 was mostly due to decreased operating leverage because of lower volumes related to softer market demand combined with higher material costs in both of our North American segment.

經調整後，本季 EBITDA 降至 4,200 萬美元，而去年同期為 4,850 萬美元。截至 2024 年 7 月 31 日的三個月調整後收益的下降主要是由於營運槓桿下降，因為市場需求疲軟導致銷售下降，加上我們北美部門的材料成本上升。

Now for results by operating segment, we generated net sales of $170.3 million in our North American Fenestration segment for the third quarter of 2024, which represents a decrease of 3.9% compared to $177.1 million in the third quarter of 2023, primarily due to lower volume.

現在按營運部門劃分的業績顯示，我們的北美門窗部門2024 年第三季的淨銷售額為1.703 億美元，與2023 年第三季的1.771 億美元相比下降了3.9%，這主要是由於銷量下降。

We estimate the volumes in this segment decreased by approximately 5% year over year, offset by a slight increase in pricing. Adjusted EBITDA decreased to $24.7 million in this segment compared to $27.7 million for the same period of 2023.

我們估計該細分市場的銷量年減約 5%，但被定價小幅上漲所抵銷。該部門調整後的 EBITDA 下降至 2,470 萬美元，而 2023 年同期為 2,770 萬美元。

Our European Fenestration segment generated revenue of $59.6 million in the third quarter, which represents a decrease of approximately 11% compared to the third quarter of 2023. After adjusting for the foreign exchange impact.

我們的歐洲門窗部門第三季營收為 5,960 萬美元，較 2023 年第三季下降約 11%。調整外匯影響後。

We estimate the volumes declined by approximately 8% year over year in this segment with pricing down by approximately 2.5% and a negative foreign exchange translation impact of about 1%. Adjusted EBITDA decreased and came in at $15.3 million for the quarter compared to $18.6 million in the third quarter of 2023.

我們估計該細分市場的銷量年減約 8%，價格下降約 2.5%，外匯換算的負面影響約為 1%。本季調整後 EBITDA 下降，為 1,530 萬美元，而 2023 年第三季為 1,860 萬美元。

We generated net sales of $51.5 million in our North American cabinet components segment during the quarter, which was 7.1% lower than prior year. This decrease was driven by lower volumes and lower index pricing for hardwoods.

本季我們的北美櫥櫃組件業務淨銷售額為 5,150 萬美元，比去年同期下降 7.1%。這一下降是由於硬木銷售下降和指數定價下降所致。

We estimate that volumes declined by approximately 8% in this segment year over year, offset slightly by an increase in pricing. Adjusted EBITDA was $3.4 million for the third quarter in this segment compared to $5.4 million in the third quarter of 2023.

我們估計該細分市場的銷量年減約 8%，但價格上漲略有抵銷。該細分市場第三季調整後 EBITDA 為 340 萬美元，而 2023 年第三季為 540 萬美元。

Moving on to cash flow and the balance sheet. Cash provided by operating activities was $46.4 million for the third quarter of 2024 compared to $64.1 million for the third quarter of 2023. Free cash flow decreased for the quarter, mainly driven by lower net income because of softer demand, higher SG&A that included $6 million in transaction and advisory fees related to the Tyman acquisition and a higher income tax expense.

轉向現金流和資產負債表。2024 年第三季經營活動提供的現金為 4,640 萬美元，而 2023 年第三季為 6,410 萬美元。本季自由現金流下降，主要是由於需求疲軟導致淨利潤下降、SG&A 上升（其中包括與泰曼收購相關的 600 萬美元交易和諮詢費用）以及所得稅費用上升。

Our leverage ratio of net debt to last 12 months, adjusted EBITDA was negative 0.3 times as of July 31, 2024 or said another way, we were net debt free. Of course, this was prior to closing on the Tyman acquisition on August 1.

截至 2024 年 7 月 31 日，我們過去 12 個月的淨債務槓桿率（調整後 EBITDA）為負 0.3 倍，或者換句話說，我們沒有淨債務。當然，這是在 8 月 1 日完成泰曼收購之前。

As referenced in the earnings release, our completion of the Tyman acquisition means that our prior guidance for fiscal 2024 is no longer valid. Note that we still feel comfortable with our prior guidance for the legacy Quanex business. And our updated guidance is simply layering in the contribution from the legacy Tyman business for the fourth quarter.

正如收益發布中所提到的，我們完成對泰曼的收購意味著我們先前對 2024 財年的指導不再有效。請注意，我們仍然對先前對傳統 Quanex 業務的指導感到滿意。我們更新的指引只是簡單地分層了傳統泰曼業務第四季的貢獻。

On a consolidated basis, we now estimate net sales of $1.275 billion to $1.285 billion, which should result in $171 million to $176 million in adjusted EBITDA for fiscal 2024. Please note that this revised guidance incorporates an expected cost impact of approximately $3 million related to performing a full physical inventory count at all legacy Tyman manufacturing plants prior to our fiscal year end on October 31.

在合併基礎上，我們現在估計淨銷售額為 12.75 億美元至 12.85 億美元，這應導致 2024 財年調整後 EBITDA 為 1.71 億美元至 1.76 億美元。請注意，本修訂後的指導意見納入了與在 10 月 31 日財政年度結束之前對所有傳統泰曼製造工廠進行完整實體庫存盤點相關的預計約 300 萬美元的成本影響。

Performing physical inventory accounts following acquisitions and annually thereafter is vital to ensuring the accuracy and integrity of financial records and regulatory compliance. These counts verify the inventory records match actual stock levels support accurate financial reporting, meet regulatory requirements, enhance operational efficiency and safeguard against fraud and errors.

收購後以及此後每年進行實體庫存帳目對於確保財務記錄的準確性和完整性以及監管合規性至關重要。這些計數驗證庫存記錄是否與實際庫存水準相符，支援準確的財務報告、滿足監管要求、提高營運效率並防止詐欺和錯誤。

It's also worth noting that we plan to report the legacy Tyman results for the fourth quarter of 2024 as a separate operating segment. As George said, we're in the process of establishing a new operating and segment reporting structure which will be implemented in fiscal 2025 and which we hope to unveil at an Investor Day in early calendar 2025.

另外值得注意的是，我們計劃將 2024 年第四季的傳統泰曼業績作為一個單獨的營運部門進行報告。正如喬治所說，我們正在建立新的營運和分部報告結構，該結構將在 2025 財年實施，我們希望在 2025 年初的投資者日公佈。

In addition, for modeling purposes, please use the following initial guidance for the full year 2024, which incorporates the legacy Tyman business for Q4. Depreciation and amortization of approximately $53 million to $55 million.

此外，出於建模目的，請使用以下 2024 年全年初步指南，其中包含第四季度的泰曼傳統業務。折舊和攤提約5300萬至5500萬美元。

SG&A of $168 million to $170 million after adjusting for one-time transaction and advisory costs. Interest expense of $18 million to $20 million and a tax rate of 22%. From a cadence perspective for the fourth quarter of this year versus the third quarter of this year, we expect revenue to be flat to up 2% for the legacy Quanex business and up approximately 75% on a consolidated basis, including the legacy Tyman business.

銷售及管理費用調整一次性交易和諮詢成本後，為 1.68 億至 1.7 億美元。利息支出為 1,800 萬至 2,000 萬美元，稅率為 22%。從今年第四季與今年第三季的節奏來看，我們預計傳統 Quanex 業務的營收將持平至成長 2%，而在合併基礎上（包括傳統 Tyman 業務）營收將成長約 75%。

By segment for the fourth quarter of this year compared to the third quarter of this year, we expect revenue to be flat to up 2% in our North American Fenestration segment, flat to down 2% in our European Fenestration segment and flat in our North American cabinet components segment.

按細分市場劃分，與今年第三季相比，我們預計北美門窗業務部門的營收將持平至成長 2%，歐洲門窗業務部門的營收將持平至下降 2%，北方持平美國櫥櫃零件部門。

We're forecasting revenue of $210 million to $215 million for the legacy Tyman business for the fourth quarter. Adjusted EBITDA margin is expected to be up approximately 25 basis points for the legacy Quanex business in the fourth quarter of 2024, again compared to the third quarter of this year.

我們預計泰曼傳統業務第四季的營收為 2.1 億至 2.15 億美元。與今年第三季相比，預計 2024 年第四季傳統 Quanex 業務的調整後 EBITDA 利潤率將成長約 25 個基點。

On a consolidated basis, which includes the legacy Tyman business and the previously mentioned costs related to physical inventory counts. Adjusted EBITDA margin is expected to be down 25 basis points to 50 basis points for the fourth quarter compared to the third quarter.

在合併的基礎上，其中包括傳統的泰曼業務和前面提到的與實際庫存盤點相關的成本。與第三季相比，第四季調整後 EBITDA 利潤率預計將下降 25 個基點至 50 個基點。

Operator, we will now take your questions.

接線員，我們現在將回答您的問題。

(Operator Instructions)

（操作員說明）

Steven Ramsey, TRG.

史蒂文·拉姆齊，TRG。

Hi, good morning. Maybe wanted to start with the legacy company, full year outlook being unchanged. Wanted to think about this in the context of many building product companies in our coverage and more broadly who reduced their outlook for fiscal -- for calendar '24 for lower demand.

嗨，早安。也許想從遺留公司開始，全年前景保持不變。我們想在我們報道的許多建築產品公司以及更廣泛的範圍內考慮這一問題，這些公司因需求下降而降低了 24 日曆年的財政前景。

You guys are keeping your legacy outlook. Can you talk about maybe why you are able to hold that outlook and then looking within your different end markets and products, did you adjust anything up or down by market or by product in results or your outlook? Thanks.

你們正在保持你們的傳統觀點。您能否談談為什麼您能夠保持這種前景，然後看看您不同的終端市場和產品，您是否根據市場或產品的結果或您的前景調整了任何內容？謝謝。

Yeah, good question, Steven. In terms of our full year guidance, I think our projections for what we've given in the past two quarters. I think we've always been somewhat conservative in our approach and really had built in not a lot of movement from the Fed early in the year.

是的，好問題，史蒂文。就我們的全年指導而言，我認為我們對過去兩個季度的預測。我認為我們的做法一直有些保守，而且今年年初聯準會確實沒有採取太多行動。

So I think we were probably a little more conservative than some of our peers and thus didn't have to change our outlook on a go-forward basis. I think our operating teams and the sales teams have done a good job going out and trying to get some spot onetime business or picking up some different things that helps offset some of those softness.

因此，我認為我們可能比一些同行更加保守，因此不必改變我們對未來的看法。我認為我們的營運團隊和銷售團隊做得很好，他們出去嘗試獲得一些一次性業務，或者選擇一些不同的東西來幫助抵消一些疲軟的影響。

In addition of some introduction of some new products that are starting to roll out. So I think it's a combination of things, but again being relatively conservative in our full year outlook early in the year, combined with the just the sales teams going out and pushing hard to get spot business has enabled us to stay fairly flat.

另外也介紹了一些即將推出的新產品。因此，我認為這是多種因素共同作用的結果，但我們在年初對全年展望再次採取相對保守的態度，再加上銷售團隊外出並努力爭取現貨業務，使我們的業績保持相當平穩。

Okay. That's helpful. And then maybe to get you to build more on the potential share gains you've gotten in winning business. And can you go into more detail on maybe where that has come from and then maybe put this business that you've won, put it into context into prior years and maybe if it's a comparable or even superior to prior years in winning business at this point in a calendar year?

好的。這很有幫助。然後也許可以讓您在贏得業務時獲得的潛在份額收益上獲得更多收益。您能否更詳細地說明它的來源，然後將您贏得的這項業務與前幾年的背景聯繫起來，也許它在贏得業務方面是否與前幾年相當，甚至優於前幾年日曆年中的某個點？

Yeah, I think the markets themselves, especially coming out of some pretty challenging supply chain [1 year, 1.5 year] there hasn't been an enormous amount of shifts in terms of market share through with our competitors are in the market zone.

是的，我認為市場本身，特別是來自一些相當具有挑戰性的供應鏈[1年，1.5年]，我們的競爭對手的市場份額並沒有發生巨大的變化，處於市場區域。

I think we've seen the most market share gain probably over in our European Fenestration business, and that's really because of some competitors had filed for administration. So there's fewer competitors and I think all of the people that still exist in that market have picked up some market share on, but that's been some nice wins for us on volume.

我認為我們的歐洲門窗業務可能已經看到了最大的市場份額成長，這實際上是因為一些競爭對手已經申請了管理。因此，競爭對手越來越少，我認為該市場中仍然存在的所有人都獲得了一些市場份額，但這對我們來說在銷量方面取得了一些不錯的勝利。

We've continued to utilize our thermal performance as a selling point to get new businesses for our spacer products as around the world, the thermal performance and thermal efficiency of windows continues to grow. I think we continue to find opportunities to build off of that sustainability platform and have had some nice wins globally there.

我們繼續利用我們的熱性能作為賣點，為我們的間隔產品贏得新業務，因為在世界各地，窗戶的熱性能和熱效率不斷增長。我認為我們將繼續尋找機會來建立永續發展平台，並在全球範圍內取得了一些不錯的勝利。

But outside of that, really the markets have kind of been stable. I think what we see when we do pick up businesses that's usually short term and I'll use, for example, our cabinet business, it's pretty entrenched in, but we've been able to pick up some spot business and with some smaller customers those are the types of wins we see. So not a lot of shift in long contractual wins on that side of our business, but some nice spot wins.

但除此之外，市場其實一直保持穩定。我認為，當我們確實接手通常是短期的業務時，我會使用我們的櫥櫃業務，它非常根深蒂固，但我們已經能夠接手一些現貨業務和一些較小的客戶這些就是我們看到的勝利類型。因此，我們業務方面的長期合約勝利並沒有太大變化，但贏得了一些不錯的機會。

Okay. That's helpful. And then one more for me. One of the positive aspects of the Tyman deal was the limited product overlap between the two companies and another positive feature was time and greater mix of highly engineered products that carry better pricing.

好的。這很有幫助。然後再給我一張。泰曼交易的一個積極方面是兩家公司之間的產品重疊有限，另一個積極的特徵是時間和具有更好定價的高度工程化產品的更多組合。

Can you talk about if there is any overlap on products where Tyman's mix of highly engineered products is better than yours and maybe where you see that evolving strategically over the next year as you put the companies together and go to market?

您能否談談泰曼的高度工程化產品組合是否比您的產品有任何重疊，也許您認為明年當您將公司合併並進入市場時，這些產品會在策略上發生變化？

Yeah, another great question. I think again, we're one month into this but what we anticipated through our due diligence and what we've seen in this first 30 days, 45 days is exactly that there's very little overlap in the products and little channel conflict in what we do.

是的，另一個很好的問題。我再次想，我們已經這樣做了一個月，但透過盡職調查以及我們在前 30 天、45 天所看到的情況，我們的預期是，產品幾乎沒有重疊，我們的產品也幾乎沒有通路衝突。做。

So for us being able to effectively, as I mentioned in my script, doing everything but the glass, we're pretty excited about the opportunities, one to sell a full basket of goods you become more of a distributor type approach to all of our customers.

因此，正如我在腳本中提到的那樣，我們能夠有效地完成除玻璃之外的所有工作，我們對這些機會感到非常興奮，一個銷售一籃子商品的機會，您將成為我們所有產品的分銷商類型的方法。

But on new product development, I think you'll see a stronger focus for us to migrate even more into systems development, effectively doing everything, but the glass trying to find ways to create systems that integrate multiple components to create something new and different. And it's too early to tell those types of engineered and development projects take time. But I will tell you we're extremely excited about the potential opportunity of doing exactly that.

但在新產品開發方面，我認為您會看到我們更加關注系統開發，有效地完成所有工作，但玻璃試圖找到方法來創建整合多個組件的系統，以創造新的和不同的東西。現在判斷這些類型的工程和開發專案需要時間還為時過早。但我要告訴你的是，我們對這樣做的潛在機會感到非常興奮。

Excellent. Thank you.

出色的。謝謝。

Thanks.

謝謝。

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Thanks. Hey, good morning, guys. I wanted to stay on Tyman for a little bit. -- Good morning. Can you maybe just talk about how the reception has been from employees, customers, suppliers, et cetera, given the first month of our integration post-close?

謝謝。嘿，早上好，夥計們。我想在泰曼身上待一會兒。 -- 早安.您能否談談在我們整合完成後的第一個月裡，員工、顧客、供應商等的接待情況如何？

Yeah, we've been very busy in trying to get out to visit the plants meet as many people a lot of work to do, especially when you're at a quarter end so it's been a balance. But we have been extremely pleased with the level of talent of people that we see in the organization, the excitement.

是的，我們一直很忙，試圖出去參觀工廠，與很多人見面，有很多工作要做，尤其是在季度末的時候，所以這是一個平衡。但我們對我們在組織中看到的人員的才能水平感到非常滿意，令人興奮。

One of the things that we identified fairly early the cultures are very similar on things that are extremely important to us, how we serve our customers. The focus most importantly, the focus on safety, our willingness and anxiousness to develop people all of those things are extremely similar.

我們很早就發現的一件事是，我們的文化在對我們極其重要的事情上非常相似，即我們如何為客戶服務。最重要的是，對安全的關注，我們培養人才的意願和焦慮，所有這些都非常相似。

So we're very excited, I think once the deal closed, the level of sharing of data and obviously starting to build together, I mentioned in my script that we have a integration management office that has folks from pre-acquisition, both sides of the table.

因此，我們非常興奮，我認為一旦交易完成，數據共享的水平就會明顯開始共同構建，我在腳本中提到，我們有一個集成管理辦公室，裡面有來自收購前、雙方的人員。

And these folks are working as though they've been colleagues for 30 years and it's been great to see. And I'm excited to see what sort of energy that and opportunities that they're going to create. I think our customers have been very supportive.

這些人工作起來就像 30 年來的同事一樣，很高興看到他們。我很高興看到他們將創造什麼樣的能量和機會。我認為我們的客戶非常支持。

We spent time talking to many of them about learning in their eyes what are the strengths and the weaknesses of each. And it's our job to build on the strengths of those companies and minimize what would be a perceived weakness.

我們花了很多時間與他們中的許多人交談，了解他們眼中每個人的優點和缺點是什麼。我們的工作就是發揮這些公司的優勢，並盡量減少它們被認為的弱點。

And I think we overlay very, very well. I mean, I think the Quanex has been very strong manufacturing base company and I think of Tyman team was probably a little more commercial driven and engineered types of solutions. And I think when you overlay those two, it's going to create something very, very special.

我認為我們的疊加效果非常非常好。我的意思是，我認為 Quanex 是一家非常強大的製造基地公司，我認為 Tyman 團隊可能更具商業驅動和工程類型的解決方案。我認為當你將這兩者疊加時，將會創造出一些非常非常特別的東西。

Absolutely. Really helpful color there. And then Scott, you talked about give some physical inventory counts and the cost impact related to that. Do you also lose any days of operations to do that and if so, how many days? And then secondly, do you expect maybe to implement a new ERP, you have some data tracking and maybe reduce that physical inventory count impact over time?

絕對地。那裡的顏色確實很有幫助。然後斯科特，您談到了一些實際庫存計數以及與之相關的成本影響。為此，您是否還會損失任何營運天數？其次，您是否期望實施新的 ERP，您有一些數據跟踪，並可能隨著時間的推移減少實際庫存計數的影響？

Yeah, absolutely. We're going to get much more efficient on it the second time around/ I mean, this was something that they weren't expecting to have to get done by October 31 is something that we feel is very necessary there will be a financial impact.

是的，絕對是。第二次我們會變得更有效率/我的意思是，這是他們沒想到必須在 10 月 31 日之前完成的事情，但我們認為非常有必要，這會產生財務影響。

I quantified that the cost side, there will be some downtime that will affect a little of the revenue side, which is also reflected in the guidance that we gave. So it's a learning process on their end is something we're used to here at legacy Quanex, but we're partners now we're going to work with them to make sure that going forward, this is a more efficient process.

我量化了成本方面，會有一些停機時間，這會影響一些收入方面，這也反映在我們給出的指導中。所以這是他們的學習過程，我們在傳統的 Quanex 已經習慣了，但我們現在是合作夥伴，我們將與他們合作，以確保未來這是一個更有效率的過程。

And from an ERP perspective, your question there, I think once we finalize on the new reporting structures, we'll obviously do an in-depth look at what ERPs exist within the legacy organizations and how they match up with the new reporting structure.

從 ERP 的角度來看，你的問題是，我認為一旦我們最終確定了新的報告結構，我們顯然會深入研究遺留組織中存在的 ERP 以及它們如何與新的報告結構相匹配。

And we'll do everything that we can to streamline I think that's one of the things on in terms of trying to optimize margin, take out costs while not impacting our customer. That's always been a focus for the Quanex team and we'll make sure that, that continues to exist on a go-forward basis.

我們將盡一切努力簡化流程，我認為這是努力優化利潤、降低成本而不影響客戶的事情之一。這一直是 Quanex 團隊的焦點，我們將確保這一點繼續存在。

Got it. How does the SKU count for timing compared to legacy Quanex? Is it meaningfully different or how would you describe that?

知道了。與傳統 Quanex 相比，SKU 如何計算時間？它有有意義的不同嗎？

I would say that there tends to be more SKUs on the legacy Tyman business. It is a different type of business model Quanex has typically been made to order, I would say, Tyman as more make to stock. So they typically have a higher levels of inventory.

我想說的是，傳統的泰曼業務往往有更多的 SKU。這是一種不同類型的商業模式，Quanex 通常是按訂單生產的，我想說，Tyman 更多的是按庫存生產。因此，他們通常擁有較高的庫存水準。

They're engineered into specific windows system. So for example, when a customer engineers in a product into a window system, even if the window system it goes out of manufacture and build kind of like an OE win for an automotive.

它們被設計到特定的 Windows 系統。例如，當客戶將產品設計成車窗系統時，即使該車窗系統已經停產，並且類似於汽車的原始設備製造商。

When a car year expires, you still have to have the ability to make that product through the aftermarket life. It's very similar with their organization in that regard. So little more SKUs a little more inventory, we'll work to kind of drive that as much as we can to make to order versus make the stock, but a little different of a business model.

當汽車年份到期時，您仍然必須有能力在售後市場中生產該產品。在這方面與他們的組織非常相似。因此，SKU 多一點，庫存多一點，我們將盡力推動按訂單生產而不是庫存生產，但商業模式略有不同。

Okay, I'll pass it on. Thanks very much, guys.

好的，我會轉達的。非常感謝，夥計們。

Thanks.

謝謝。

Reuben Garner, Benchmark.

魯本·加納，基準。

Thanks. Good morning, everybody. So just to follow up on Julia's question about the Tyman deal and customer conversations. I think revenue potential synergies or cross-selling opportunities was something mentioned around the initial announcement of the deal.

謝謝。大家早安。我想跟進朱莉婭關於泰曼交易和客戶對話的問題。我認為在最初宣布交易時提到了潛在的收入協同效應或交叉銷售機會。

I was just curious what your kind of feedback was from customers on that front. Are there any dis-synergy risks, any customers that maybe don't want to get overly exposed to one supplier? Any other kind of thoughts there would be helpful.

我只是好奇客戶在這方面的回饋如何。是否有任何不協同風險，是否有任何客戶不想過度接觸某一供應商？任何其他想法都會有幫助。

I don't see any initial dis-synergy home. It's too early into the process to identify the revenue opportunities. We obviously think that they're there and I'm not only by selling a basket of goods, but also the future development of new systems utilizing the whole breadth of our portfolio.

我沒有看到任何最初的不協同作用。現在確定收入機會還為時過早。顯然，我們認為它們就在那裡，我不僅透過銷售一籃子商品，而且還利用我們整個產品組合來開發新系統。

Again, I want to remind people in our projections and preannouncement, we had never baked in any sort of revenue upside. So we feel good about that. I think any sort of protection from customers isn't necessarily based on the size of the supplier.

我想再次提醒人們，在我們的預測和預告中，我們從未實現任何形式的收入成長。所以我們對此感覺良好。我認為對客戶的任何形式的保護不一定取決於供應商的規模。

It will be product line by product line that everyone will look to evaluate the risk profile. And I feel very, very good about our position, I think -- I actually think the scale that Quanex has become actually protects our customers from the smaller type of customer base that has more financial risk.

每個人都會根據產品線來評估風險狀況。我對我們的地位感覺非常非常好，我認為——事實上，我認為 Quanex 的規模實際上可以保護我們的客戶免受具有更多財務風險的較小類型客戶群的影響。

I mean, we become a pretty large OE supplier. And with that scale, comes from security in terms of our financial wherewithal. So it's our job to make sure that they understand that we have a supply chain that is able to support every one of our product lines and that they don't have risk in terms of a supply chain side of it.

我的意思是，我們成為了相當大的原廠設備供應商。如此規模，來自於我們財務資金的安全。因此，我們的工作是確保他們了解我們擁有一條能夠支援我們每條產品線的供應鏈，並且他們在供應鏈方面沒有風險。

So I feel pretty good where we're at and we'll continue to have these discussions and build the relationships with our customer on a go-forward basis. I'm really excited, I think the combination will be able to you hear it a lot, but I do think that this can be a win-win for us and our customers as we learn and work with each one of these customers to develop engineered solutions on a go-forward basis. And that's where our focus is going to be.

因此，我對我們目前的處境感到非常滿意，我們將繼續進行這些討論，並在未來的基礎上與客戶建立關係。我真的很興奮，我認為這個組合會讓你經常聽到它，但我確實認為這對我們和我們的客戶來說是雙贏的，因為我們學習並與每一位客戶合作開發在前進的基礎上設計解決方案。這就是我們的重點。

Got it. And then switching gears. Any signs, -- it's been a few years since we've had really a ton of focus on affordability, but just wanted to hear what you're kind of seeing from a trade down standpoint, whether it's in windows or on the cabinet side. Any -- has that picked up at all? And can you just remind us how that kind of impacts you on both the spacers front and in the cabinet business.

知道了。然後換檔。有沒有跡象表明，我們已經有幾年沒有真正關注可負擔性了，但只是想聽聽您從降價角度看到的情況，無論是在窗戶還是在櫥櫃方面。任何－有沒有恢復？您能否提醒我們，這對您在墊片前端和櫥櫃業務方面有何影響？

I think on the affordability front, I really think it impacts our cabinet side of the business more than the window side of our business. If you're going to get to the point where you need to replace a window. It's either because it's broken or it's failed or you're trying to reduce your energy costs.

我認為在負擔能力方面，我真的認為它對我們業務的櫥櫃方面的影響比對我們業務的窗戶方面的影響更大。如果您需要更換窗戶。要么是因為它壞了，要么是失敗了，或者是您正在努力降低能源成本。

I mean the one thing that we are still seeing across the globe is energy costs are not getting cheaper so there's an opportunity to get a payback by upselling your window and becoming more thermally performance.

我的意思是，我們在全球範圍內仍然看到的一件事是能源成本並沒有變得更便宜，因此有機會透過增加銷售窗戶並提高熱性能來獲得回報。

The cabinet piece of our business, we're very happy with what our team has done operationally, but at the end of the day, it is a little more of a discretionary spend. And as consumer confidence still lags and they tend to be kind of a higher level purchase that may require some borrowing to redo cabinets. So it's going to be impacted more in our opinion than the windows, and I think we're seeing that right now.

對於我們業務的內閣部分，我們對我們團隊在營運方面所做的工作感到非常滿意，但歸根結底，這只是可自由支配的支出。由於消費者信心仍然滯後，而且它們往往是一種更高級別的購買，可能需要一些借款來重做櫥櫃。因此，我們認為它比窗戶受到的影響更大，我認為我們現在就看到了這一點。

Great. I'm going to sneak one more in. I know it's still a little early for an initial '25 outlook, but just kind of big picture, your revenue guide for the fourth quarter implies some improvement on a year over year basis, maybe kind of starting to flatten out. Is it too early to expect that maybe we've turned a corner in growth can resume in '25?

偉大的。我要再偷偷溜進去一個。我知道對於 25 年的初步展望來說還為時過早，但從總體上看，你們第四季度的收入指南意味著同比有所改善，也許開始趨於平緩。現在指望我們可能已經扭轉成長局面並能在 25 年恢復成長是否還為時過早？

Yeah. I mean, good question, I'm sure a lot of people are thinking the same thing. And it is too early for us to get into any sort of early look at next year. But I will say that there -- we feel like there is prospect to return to growth next year. I think that the second half is more -- we're more optimistic about the second half of next year than we are in the first half just because near-term uncertainty. But yeah, I think there's an opportunity for growth.

是的。我的意思是，問得好，我相信很多人都在想同樣的事情。對我們來說，對明年進行任何早期展望還為時過早。但我要說的是，我們覺得明年有可能恢復成長。我認為下半年我們對明年下半年比上半年更樂觀，只是因為近期的不確定性。但是，是的，我認為有成長的機會。

And the timing of those I think we saw today that the jobs report came out, it's nothing spectacular and there's more points starting to lead that the Fed will probably cut rates. So I think here over the next 30 to 60 days, when we see how large of a cut that potentially could be and the impact that has on consumer confidence.

我認為我們今天看到就業報告發布的時機，這沒什麼了不起的，並且有更多的跡象開始表明聯準會可能會降息。因此，我認為在接下來的 30 到 60 天內，我們會看到可能的削減幅度以及對消費者信心的影響。

We'll give us a better feel kind of December and into the beginning of the calendar year of how strong we're going to believe 2025 is. We think there's an opportunity for it to be a pretty decent year. But there's still noise between the interest rates and the election.

我們將在 12 月和新年伊始更能感受到我們對 2025 年的信心有多麼強勁。我們認為今年有機會成為相當不錯的一年。但利率和選舉之間仍然存在著噪音。

Great. Thanks. (multiple speakers)

偉大的。謝謝。（多個發言者）

Thank you.

謝謝。

Thank you, sir. Congrats, guys. Thanks.

謝謝您，先生。恭喜，夥計們。謝謝。

Adam Thalhimer, Thompson Davis.

亞當·塔爾希默、湯普森·戴維斯。

Hey, good morning, guys.

嘿，早上好，夥計們。

Good morning.

早安.

Congrats on the quarter and closing Tyman early.

恭喜這個季度並提前關閉泰曼。

Thanks.

謝謝。

Thanks.

謝謝。

And given it's a full quarter of Tyman that's pretty cool.

考慮到它是泰曼的四分之一，這非常酷。

Yeah, we plan it perfectly.

是的，我們計劃得完美。

Nice and clean. Kind of in line with Ruben's last question, I was wondering if you guys are seeing any green shoots in the EU.

漂亮又乾淨。與魯本的最後一個問題有點一致，我想知道你們是否看到了歐盟的任何萌芽。

I think consumer confidence has started to show a little more of a bounce back in the UK and a little not as much yet in Europe. UK has been a little more positive than what we've seen in Continental Europe. I think the Bank of England has been a little more ahead, but their economy has lagged a little longer than the US has.

我認為英國的消費者信心已經開始出現更多的反彈，而歐洲的反彈幅度還沒有那麼大。英國比我們在歐洲大陸看到的要積極一些。我認為英格蘭銀行稍微領先一些，但他們的經濟比美國落後的時間要長一些。

So I think that the UK market has suffered a little bit. So I think that there is some -- there's probably more optimism for us in the UK than we do see in Continental Europe on a short term basis.

所以我認為英國市場受到了一些影響。因此，我認為短期內英國可能比歐洲大陸更樂觀。

Got it. Okay. Scott, what was the net debt after the close?

知道了。好的。史考特，收盤後的淨債務是多少？

Yeah, we haven't since it's during our fourth quarter we haven't disclosed that, but it's not -- it's pretty much in line with what we thought it would be.

是的，我們沒有，因為在第四季度我們還沒有披露這一點，但事實並非如此——它與我們的想法非常一致。

Okay. And then if I'm doing this correctly, the Q4 tax rate jumps up a little bit to call it, 24%.Is that right?

好的。然後，如果我做得正確的話，第四季的稅率會上升一點，稱為 24%。對嗎？

Roughly, yeah. So yeah, [22%] for the whole year, so a little higher in Q4.

粗略地說，是的。所以，是的，全年 [22%]，所以第四季略高。

And is that like a good tax rate to use going forward.

這是否是一個適合未來使用的良好稅率？

Pretty close. We'll give more clarity there as we look into next year. But the reason for the uptick a little bit is mainly related to the UK patent box, which is a look for a lower rate that we enjoy as legacy Quanex, which legacy Tyman did not enjoy. So we're trying to do a little work there to help us.

八九不離十。當我們展望明年時，我們將對此進行更明確的說明。但價格略有上升的原因主要與英國專利盒有關，這是為了尋求我們作為傳統 Quanex 所享受的較低費率，而傳統 Tyman 則不享受這種待遇。因此，我們正在嘗試在那裡做一些工作來幫助我們。

Got it. And then what share count are you using for Q4, not that you gave EPS guidance, but --

知道了。然後，您在第四季度使用的股票數量是多少，不是您給的 EPS 指導，而是--

Yes, it's roughly $47 million.

是的，大約是 4700 萬美元。

Okay. And then do you have any sense for go-forward CapEx for the combined company or thoughts on Q4?

好的。那麼您對合併後公司的未來資本支出有何看法或對第四季的想法？

Probably a little too early for that where we've come in and I don't think it will -- if you were to go back and look at the standard run rates of both companies, that will probably be pretty consistent. We're in the process of evaluating all of the current projects that we have in place.

對於我們進來的地方來說可能有點太早了，而且我認為不會——如果你回去看看兩家公司的標準運行率，那可能會非常一致。我們正在評估現有的所有項目。

So I don't think that there will be anything significantly out of line. And as of -- we don't have any plans for any like plant consolidation types of projects that would chew up CapEx. So I think it will be a pretty standard year in terms of spending.

所以我認為不會有任何明顯的不合規矩的事情。截至目前，我們還沒有任何類似工廠整合類型的項目的計劃，這些項目會消耗資本支出。因此，我認為就支出而言，這將是相當標準的一年。

Outside of -- yeah, outside of the one project, I think we mentioned in the past is we're expanding in the Southeast. We're opening a new plant in Jackson, Georgia, help follow some of our bigger customers. So that will take a little bit CapEx next year.

除了——是的，除了一個項目之外，我想我們過去曾提到我們正在東南部擴張。我們將在喬治亞州傑克遜開設一家新工廠，幫助追蹤我們的一些大客戶。因此明年將需要一點資本支出。

Yeah, that was already built in dollars.

是的，那已經是用美元建造的。

Okay, got it. Great. Thank you, guys.

好的，明白了。偉大的。謝謝你們，夥計們。

I appreciate it.

我很感激。

Thank you.

謝謝。

And thank you. And I'm showing no further questions. I would now like to turn the call back over to George Wilson for closing remarks.

謝謝你。我沒有再提出任何問題。現在我想將電話轉回給喬治·威爾遜（George Wilson）做總結發言。

I would like to thank everyone for joining today. But before we go, I do want to take this opportunity to again welcome all of our new teammates who have joined us as part of the Tyman transaction. And to thank the entire team for all their hard work during the transaction. And now as we move forward together with the integration, we're really excited about the future for Quanex and look forward to updating you all again on our progress. Thank you.

我要感謝大家今天的加入。但在我們離開之前，我確實想藉此機會再次歡迎所有作為泰曼交易一部分加入我們的新隊友。並感謝整個團隊在交易過程中所做的辛勤工作。現在，隨著我們共同推動整合，我們對 Quanex 的未來感到非常興奮，並期待再次向大家通報我們的進展。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。