Quanex Building Products Corp (NX) 2024 Q4 法說會逐字稿

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

您好，感謝您的支持。歡迎參加 Quanex Building Products Corporation 2024 年第四季和全年財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to our first 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第一位演講者，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 Chairman, President, and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures. 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 statement to reflect new information or events.

感謝您參加今天早上的電話會議。今天與我一起通話的是我們的董事長、總裁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和一些非公認會計準則指標的討論。本次電話會議和收益報告中討論的前瞻性陳述和指導均基於當前預期。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.

有關我們前瞻性聲明免責聲明的更詳細說明以及非 GAAP 指標與最直接可比較的 GAAP 指標的調節表，請參閱我們昨天發布並發佈在我們網站上的收益報告。

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

現在我將電話轉給喬治，請他發表準備好的發言。

Thanks, Scott, and good morning to everyone joining the call. I'll begin today's call with a brief strategic overview followed by some commentary on the quarter and the broader macro environment. After that, I'll hand it back over to Scott, who will provide a more detailed financial discussion.

謝謝，斯科特，各位參加電話會議的人早安。我將在今天的電話會議上首先做一個簡短的策略概述，然後對本季和更廣泛的宏觀環境發表一些評論。之後，我會將其交還給斯科特，他將提供更詳細的財務討論。

As we close fiscal 2024 and reflect on the past year, I'm incredibly proud of the progress we've made in executing our strategic plan. At the core of this plan has been the creation of a solid operational foundation that drives strong cash flow and will provide support for our organic and inorganic growth plans. Building this foundation takes time and significant effort and doesn't happen without the right culture. Looking back over the uncertain and challenging macroeconomic environment over the past few years, it is clear that our operational performance has remained consistent and resilient, positioning us well for the next phase of growth. With this strong foundation in place, our profitable growth strategy has been focused on expanding existing market channels, enhancing our manufacturing capabilities, and opening new addressable markets.

當我們結束 2024 財年並回顧過去的一年時，我對我們在執行策略計劃方面取得的進展感到無比自豪。該計劃的核心是建立堅實的營運基礎，推動強勁的現金流並為我們的有機和無機成長計劃提供支援。建立這個基礎需要時間和大量精力，如果沒有正確的文化，就不可能實現。回顧過去幾年不確定且充滿挑戰的宏觀經濟環境，我們可以清楚地看到，我們的經營業績仍然保持穩定和彈性，為我們下一階段的成長做好了準備。在這一堅實基礎上，我們的獲利成長策略一直專注於擴大現有的市場管道、增強我們的製造能力以及開拓新的目標市場。

To achieve this growth, we have strategically employed both debt and equity financing, all while maintaining a healthy balance sheet. I'm pleased to report that our acquisitions of and Tyman have met all of these objectives. Looking ahead, we are entering the next stage of our evolution. Our overarching goal of continual profitable growth remains unchanged with a heightened focus on strengthening the operational foundation of our newly scaled organization.

為了實現這一成長，我們策略性地採用了債務和股權融資，同時維持了健康的資產負債表。我很高興地報告，我們對泰曼的收購已經實現了所有這些目標。展望未來，我們正進入演化的下一個階段。我們持續獲利成長的整體目標保持不變，同時更重視加強新規模組織的營運基礎。

As part of this evolution, we are restructuring our operating segments. Going forward, our structure will be centered around our core competencies in materials sciences and manufacturing rather than the previous geographic and market-based segments. We believe this shift will create the best opportunities to leverage synergies, capitalize on our strengths, and fuel growth, both in our current markets and in new adjacent areas.

作為這項變革的一部分，我們正在重組我們的營運部門。展望未來，我們的結構將圍繞著材料科學和製造業的核心競爭力，而不是先前的地理和市場細分。我們相信，這種轉變將在我們當前的市場和新的鄰近領域中創造最佳機會，以利用協同效應、充分利用我們的優勢並推動成長。

I'm excited to announce that going forward, we will operate the business in three new segments: hardware solutions, extruded solutions, and custom solutions. We created these segments with a global reach in mind, and they are structured to foster the sharing of best practices and designed to maximize synergy opportunities, positioning us for future growth in both existing and new markets. We are enthusiastic about our new organizational structure and the immense potential it holds for our customers, shareholders and all of my teammates at Quanex.

我很高興地宣布，未來我們將在三個新的領域中經營業務：硬體解決方案、擠壓解決方案和客製化解決方案。我們在創建這些部門時就已考慮到了全球影響力，其結構旨在促進最佳實踐的共享，最大化協同機會，為我們在現有市場和新市場的未來成長做好準備。我們對新的組織結構以及它為我們的客戶、股東和 Quanex 的所有隊友帶來的巨大潛力充滿熱情。

To provide further insights into our evolution, we've scheduled an Investor and Analyst Day at the NYSE on February 6, 2025. During this event, we will introduce the leaders of each segment and offer a deeper look at our company, product lines, and strategy. Turning to our fiscal fourth quarter, market conditions and order demand came in very near to our expectations. Volumes remained consistent with our anticipated return to a more traditional seasonality pattern.

為了進一步了解我們的發展，我們計劃於 2025 年 2 月 6 日在紐約證券交易所舉辦投資者和分析師日。在本次活動期間，我們將介紹各部門的領導者，並深入了解我們的公司、產品線和策略。回顧我們的第四財季，市場狀況和訂單需求非常接近我們的預期。交易量與我們預期的迴歸更傳統的季節性模式保持一致。

Despite Fed rate cuts and greater certainty around the US presidential election, we are still operating in an environment with weakened consumer confidence, amid high interest rates and inflationary concerns. Global geopolitical uncertainties and higher energy costs continue to impact markets worldwide. With that being said, we expect sluggish demand throughout the holiday and winter months, but remain optimistic for a rebound in new build and R&R activity in the second half of our fiscal 2025 as consumer confidence improves.

儘管聯準會降息且美國總統大選前景更加確定，但在高利率和通膨擔憂的環境下，我們仍然處於消費者信心減弱的環境中。全球地緣政治的不確定性和能源成本的上升繼續影響全球市場。話雖如此，我們預計整個假期和冬季的需求都會低迷，但隨著消費者信心的增強，我們仍然對 2025 財年下半年新建和 R&R 活動的反彈持樂觀態度。

From an operational standpoint, the Quanex team continues to perform exceptionally well with a focus on the integration of Tyman in the pursuit of ongoing capacity and margin optimization projects. I'm pleased to report that the Tyman integration is ahead of schedule, and the expected synergies are being realized as planned. We will provide more detailed updates on synergy progress as the year unfolds.

從營運角度來看，Quanex 團隊持續表現出色，專注於整合 Tyman，追求持續的產能和利潤優化專案。我很高興地報告，泰曼整合工作正在提前進行，預期的協同效應正在按計劃實現。隨著時間的推移，我們將提供有關協同效應進展的更詳細的更新。

On the margin and capacity optimization front, one project completed during the quarter was the sale of our Richmond, Kentucky vinyl extrusion facility. As mentioned over the past few years, the vinyl window extrusion market in North America has faced challenges due to excess capacity. We successfully sold the Richmond, Kentucky facility during the fourth quarter for a gain of approximately $5 million, while simultaneously improving the cost structure of the remaining North American vinyl extrusion business. We also sold our North American vinyl fencing business as a part of this sale, which generated revenue of approximately $13 million in fiscal 2024 at a very low margin.

在利潤和產能優化方面，本季完成的一個項目是出售我們位於肯塔基州里士滿的乙烯基擠出工廠。正如過去幾年所提到的，北美的乙烯基窗戶擠壓市場因產能過剩而面臨挑戰。我們在第四季度成功出售了位於肯塔基州里士滿的工廠，獲利約 500 萬美元，同時改善了剩餘北美乙烯基擠出業務的成本結構。作為此次出售的一部分，我們還出售了我們的北美乙烯基圍欄業務，該業務在 2024 財年以非常低的利潤率創造了約 1300 萬美元的收入。

In closing, I want to thank the team at Quanex for their continued hard work and performance. And I'd also like to welcome all of our new teammates from Tyman. We've executed well on our strategy, and we're very excited for the next steps in creating value for all of our stakeholders.

最後，我要感謝 Quanex 團隊的持續努力和出色表現。我也謹歡迎來自泰曼的所有新隊友。我們的策略執行得很好，我們對下一步為所有利害關係人創造價值感到非常興奮。

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

現在我將把電話轉回給史考特，他將更詳細地討論我們的財務結果。

Thanks, George. On a consolidated basis, we reported net sales of $492.2 million during the fourth quarter of 2024, which represents an increase of approximately 67% compared to $295.5 million for the same period of 2023. We reported net sales of $1.28 billion for the full year, which represents an increase of approximately 13% compared to $1.13 billion for 2023. The increases were primarily driven by the contribution from the Tyman acquisition that closed on August 1, 2024.

謝謝，喬治。從合併基礎來看，我們報告 2024 年第四季的淨銷售額為 4.922 億美元，較 2023 年同期的 2.955 億美元成長約 67%。我們報告全年淨銷售額為 12.8 億美元，較 2023 年的 11.3 億美元成長約 13%。成長主要得益於 2024 年 8 月 1 日完成的 Tyman 收購帶來的貢獻。

Excluding the contribution from Tyman, net sales would have declined by 2.3% for the fourth quarter of 2024 and 5% for the full year, largely due to lower volume. We reported a net loss of $13.9 million or $0.30 per diluted share during the three months ended October 31, 2024, compared to net income of $27.4 million or $0.83 per diluted share during the three months ended October 31, 2023. For the full year 2024, we reported net income of $33.1 million or $0.90 per diluted share compared to $82.5 million or $2.50 per diluted share for the full year 2023.

如果不計泰曼的貢獻，2024 年第四季的淨銷售額將下降 2.3%，全年淨銷售額將下降 5%，這主要是由於銷量下降。我們報告，截至2024 年10 月31 日的三個月內，淨虧損為1,390 萬美元，即每股攤薄虧損0.30 美元，而截至2023 年10 月31 日的三個月內，淨收入為2,740 萬美元，即每股攤薄虧損0.83 美元。我們報告的 2024 年全年淨收入為 3,310 萬美元，即每股攤薄收益 0.90 美元，而 2023 年全年淨收入為 8,250 萬美元，即每股攤薄收益 2.50 美元。

On an adjusted basis, net income was $28.6 million or $0.61 per diluted share during the fourth quarter of 2024 compared to $31.2 million or $0.95 per diluted share during the fourth quarter of 2023. Adjusted net income was $80.4 million or $2.19 per diluted share for fiscal 2024 compared to $90.9 million or $2.75 per diluted share for fiscal 2023. The adjustments being made to EPS are primarily for transaction and advisory fees, amortization of the step-up for purchase price adjustments on inventory and AR related to the Tyman acquisition, expenses related to a plant closure, loss on damage to a manufacturing facility caused by weather, pension settlement expense, and foreign currency translation impacts.

經調整後，2024 年第四季淨收入為 2,860 萬美元或每股攤薄收入 0.61 美元，而 2023 年第四季淨收入為 3,120 萬美元或每股攤薄收入 0.95 美元。2024 財年調整後淨收入為 8,040 萬美元或每股攤薄收入 2.19 美元，而 2023 財年調整後淨收入為 9,090 萬美元或每股攤薄收入 2.75 美元。對每股收益進行的調整主要是為了交易和諮詢費用、庫存購買價格調整的攤銷和與 Tyman 收購相關的應收帳款、與工廠關閉相關的費用、因以下原因造成的製造設施損壞的損失天氣、退休金結算費用和外幣折算的影響。

On an adjusted basis, EBITDA for the quarter increased by 59.6% to $81.1 million compared to $50.8 million during the same period of last year. For the full year 2024, adjusted EBITDA increased by 14.3% to $182.4 million, which is a new record for Quanex compared to $159.6 million in 2023. This equates to adjusted EBITDA margin expansion of approximately 20 basis points year over year. The increase in adjusted earnings for the 3 months and 12 months ended October 31, 2024, was mostly attributable to the contribution from the Tyman acquisition. However, the increase in adjusted earnings was also due in part to lower cost of sales, including labor related to lower volumes and deflation in the price of raw materials.

經調整後，本季的 EBITDA 較去年同期的 5,080 萬美元成長 59.6% 至 8,110 萬美元。2024 年全年，調整後的 EBITDA 成長 14.3% 至 1.824 億美元，與 2023 年的 1.596 億美元相比創下了 Quanex 的新紀錄。這相當於調整後的 EBITDA 利潤率較上年同期擴大約 20 個基點。截至 2024 年 10 月 31 日的 3 個月和 12 個月的調整後收益增加主要歸因於 Tyman 收購的貢獻。不過，調整後收益的成長也部分歸因於銷售成本的下降，包括與銷售下降相關的勞動成本以及原物料價格的下跌。

Now for results by operating segment. We generated net sales of $172 million in our North American fenestration segment for the fourth quarter of 2024, a decrease of 4.7% compared to $180.5 million in the fourth quarter of 2023. We estimate that volumes in this segment declined by approximately 6% year over year with pricing up approximately 1% versus Q4 of 2023.

現在按經營部門列出業績。2024 年第四季度，我們在北美門窗部門的淨銷售額為 1.72 億美元，較 2023 年第四季的 1.805 億美元下降 4.7%。我們估計，該細分市場的銷量年減約 6%，價格較 2023 年第四季上漲約 1%。

For the full year, we reported net sales of $650 million in our North American fenestration segment, a decrease of 2.6% compared to $667.5 million in 2023. The decrease was mainly due to softer market demand and lower pricing. We estimate the volumes in this segment declined by approximately 3% year over year in 2024 with pricing up slightly versus 2023. Adjusted EBITDA was $30.1 million in this segment for the fourth quarter or 1.5% higher than prior year, which equates to margin expansion of approximately 110 basis points year over year.

全年而言，我們報告北美門窗部門的淨銷售額為 6.5 億美元，較 2023 年的 6.675 億美元下降 2.6%。下降的主要原因是市場需求疲軟和價格下降。我們估計，2024 年該領域的銷量將年減約 3%，價格將較 2023 年略有上漲。第四季該部門調整後 EBITDA 為 3,010 萬美元，較上年增長 1.5%，相當於利潤率較上年擴大約 110 個基點。

Adjusted EBITDA was $93.9 million in this segment for the full year or essentially flat versus 2023, but equates the margin expansion of approximately 50 basis points year over year. This group has done a good job of controlling costs despite lower volumes. Our European fenestration segment generated revenue of $65.1 million in the fourth quarter, which represents an increase of 1.4% compared to $64.2 million in the fourth quarter of 2023.

該部門全年調整後 EBITDA 為 9,390 萬美元，與 2023 年基本持平，但相當於利潤率同比擴大約 50 個基點。儘管銷量較低，但集團在成本控制方面做得很好。我們的歐洲門窗部門在第四季度創造了 6,510 萬美元的收入，與 2023 年第四季的 6,420 萬美元相比成長了 1.4%。

We estimate that volumes were essentially flat year over year in this segment for the quarter with pricing down approximately 1% and positive foreign exchange translation impact of about 3%. For the full year, we reported net sales of $230.7 million in our European fenestration segment, a decrease of 7.9% compared to $250.8 million in 2023. For the full year, we estimate the volumes declined by approximately 7% year over year in this segment, with pricing down by approximately 2% and positive foreign exchange translation impact of about 1%.

我們估計本季該部門的銷量與去年同期基本持平，價格下降約 1%，外匯折算的正影響約為 3%。全年而言，我們報告歐洲門窗部門的淨銷售額為 2.307 億美元，較 2023 年的 2.508 億美元下降 7.9%。我們估計，全年該部門的銷量年減約 7%，定價下降約 2%，外匯折算的正影響約為 1%。

Adjusted EBITDA declined slightly to $16.5 million in this segment for the quarter versus $16.7 million during the same period last year. For the full year, adjusted EBITDA came in at $54.8 million in this segment, which represented a decline of 8.5%, but note that margin was essentially flat. We reported net sales of $52.8 million in our North American Cabinet Components segment during the quarter, which represented growth of 1.7% compared to prior year. We estimate that volumes declined by approximately 3% and price increased by approximately 5% in this segment for the quarter.

本季該部門的調整後 EBITDA 小幅下降至 1,650 萬美元，去年同期為 1,670 萬美元。全年而言，該部門調整後的 EBITDA 為 5,480 萬美元，下降 8.5%，但請注意，利潤率基本上持平。我們報告本季北美機櫃組件部門的淨銷售額為 5,280 萬美元，比上年增長 1.7%。我們估計本季該部門的銷量下降了約 3%，價格上漲了約 5%。

For the full year, we reported net sales of $198.4 million, which represents a decline of 7.9% year over year. We estimate the volumes declined by approximately 6%, with price declining approximately 2% for 2024 versus 2023. The price movements for both periods were largely related to index pricing tied to hardwood costs. Adjusted EBITDA was $3.3 million and $9.3 million in this segment for the quarter and full year, respectively. The time lag related to our hardwood index pricing mechanism in this segment negatively impacted profitability in 2024 after helping us on that front in 2023.

我們報告的全年淨銷售額為 1.984 億美元，年減 7.9%。我們估計，2024 年的產量將下降約 6%，價格將比 2023 年下降約 2%。這兩個時期的價格變動主要與與硬木成本掛鉤的指數定價有關。該部門本季和全年調整後 EBITDA 分別為 330 萬美元和 930 萬美元。該部門硬木指數定價機制的時間滯後在 2023 年為我們帶來了幫助，但在 2024 年卻對獲利能力產生了負面影響。

The Tyman business reported net sales of $203.4 million for the fourth quarter of 2024. Since we didn't own this business in the fourth quarter of 2023, there is no comp in the earnings release. However, revenue was down approximately 11% for this segment in the fourth quarter of 2024 compared to the fourth quarter of 2023, mostly due to soft market demand in all segments, which is consistent with what we saw in the legacy Quanex business, but also due in part to the conscious decision to exit low-margin business in China.

Tyman 業務報告稱，2024 年第四季的淨銷售額為 2.034 億美元。由於我們在 2023 年第四季並不擁有這項業務，因此收益報告中沒有包含可比較數據。然而，2024 年第四季該部門的營收與2023 年第四季相比下降了約11%，主要是由於所有部門的市場需求疲軟，這與我們在傳統Quanex 業務中看到的情況一致，但也部分原因是該公司有意識地決定退出中國低利潤業務。

Adjusted EBITDA came in at $34.5 million for the quarter, which yielded meaningful margin expansion compared to Q4 of 2023, driven by cost synergies related to the closing of Tyman's legacy home office in London, exiting low-margin business in China and more efficient operations in North America.

本季調整後的EBITDA 為3,450 萬美元，與2023 年第四季相比，利潤率大幅擴大，這得益於Tyman 關閉倫敦傳統總部、退出中國低利潤業務以及提高營運效率所產生的成本協同效應。

Moving on to cash flow and the balance sheet. Cash provided by operating activities was $5.5 million for the fourth quarter of 2024, which compares to $44.5 million for the fourth quarter of 2023. Cash provided by operating activities for the full year 2024 was $88.8 million, which compares to $147.1 million for the full year 2023. We maintained focus on managing working capital throughout the year, but the fourth quarter was impacted by layering in the Tyman acquisition as the legacy Tyman business is very much a make-to-stock business and the legacy Quanex business is very much make-to-order.

繼續討論現金流和資產負債表。2024 年第四季經營活動提供的現金為 550 萬美元，而 2023 年第四季為 4,450 萬美元。2024 年全年經營活動提供的現金為 8,880 萬美元，而 2023 年全年為 1.471 億美元。我們全年都專注於管理營運資本，但第四季度受到了Tyman 收購的影響，因為Tyman 的傳統業務在很大程度上是按庫存生產的業務，而Quanex 的傳統業務在很大程度上是按庫存生產的業務。

We generated free cash flow of $51.7 million for the full year in 2024, a decrease of about 53% compared to 2023. The main driver for the lower free cash flow in 2024 is the one-time cash costs related to the Tyman acquisition. If you adjust for these one-time cash costs, free cash flow would have been about $89 million for the full year of 2024 on a normalized basis. As a reminder, we borrowed $770 million, $500 million for Term Loan A and $270 million on the revolver to acquire Tyman on August 1, 2024.

我們 2024 年全年產生的自由現金流為 5,170 萬美元，與 2023 年相比下降約 53%。2024 年自由現金流下降的主要驅動因素是與 Tyman 收購相關的一次性現金成本。如果調整這些一次性現金成本，則 2024 年全年的自由現金流在正常基礎上將達到約 8,900 萬美元。提醒一下，我們借了 7.7 億美元，其中 5 億美元用於定期貸款 A，2.7 億美元用於循環貸款，以便在 2024 年 8 月 1 日收購 Tyman。

Since that time, we were able to repay $53.75 million in debt during the fourth quarter of 2024. As of October 31, 2024, the leverage ratio for our quarterly debt compliance was 2.3 times. The debt covenant leverage ratio calculation is defined in amendment number 1 to our second amended and restated credit agreement, which was filed with the SEC on June 12, 2024. This debt covenant leverage ratio excludes real estate leases that are considered finance leases under US GAAP and is calculated on a pro forma basis to include last 12 months adjusted EBITDA from the Tyman acquisition.

自那時起，我們能夠在 2024 年第四季償還 5,375 萬美元的債務。截至2024年10月31日，我們季度債務合規的槓桿率為2.3倍。債務契約槓桿率的計算在我們第二次修訂和重述的信貸協議的第 1 號修訂中定義，該協議於 2024 年 6 月 12 日向美國證券交易委員會提交。此債務契約槓桿率不包括根據美國公認會計準則被視為融資租賃的房地產租賃，而是按備考基礎計算，包括 Tyman 收購的過去 12 個月調整後 EBITDA。

Also includes credit for $30 million of EBITDA for the synergy target related to the acquisition and cash only from domestic subsidiaries. The debt covenant leverage ratio would be 2.1 times if calculated using the full cash and cash equivalents amount on the balance sheet as of October 31, 2024. The 2.1 times leverage ratio is in line with the leverage ratio referenced in the presentation we published on our website when we announced the deal on April 22, 2024.

還包括與收購相關的協同目標的 3000 萬美元 EBITDA 信貸和來自國內子公司的現金。如果使用截至 2024 年 10 月 31 日資產負債表上的全部現金和現金等價物金額計算，債務契約槓桿率為 2.1 倍。2.1倍的槓桿率與我們在2024年4月22日宣布交易時在網站上發布的簡報中引用的槓桿率一致。

As George mentioned, we will host an Investor and Analyst Day at the NYSE on Thursday, February 6, 2025. At that time, we plan to unveil the new Quanex, which will include details specific to each operating segment, along with initial guidance for fiscal 2025. In addition, we will disclose more about our profitable growth strategy going forward. Since guidance for 2025 in detail related to the new operating segments won't be rolled out until early February, please use the following cadence for the first quarter of 2025 versus the first quarter of 2024.

正如喬治所說，我們將於 2025 年 2 月 6 日星期四在紐約證券交易所舉辦投資者和分析師日。屆時，我們計劃推出新的 Quanex，其中將包括每個營運部門的具體細節以及 2025 財年的初步指引。此外，我們還將揭露更多有關未來獲利成長策略的資訊。由於與新營運部門相關的 2025 年詳細指引要到 2 月初才會推出，因此請使用以下節奏來計算 2025 年第一季與 2024 年第一季的對比情況。

As a reminder, due to the typical seasonality of our business, our first quarter is usually the weakest quarter of the year, but we do expect a meaningful uptick in demand in the second half of 2025 as consumer confidence improves and pent-up demand starts to unwind. With that said, on a consolidated basis, we expect revenue to be up 60% to 62% in the first quarter of 2025 compared to the first quarter of 2024, driven by the contribution from the Tyman assets.

提醒一下，由於我們業務的典型季節性，我們的第一季通常是一年中最疲軟的季度，但隨著消費者信心的改善和被壓抑的需求開始釋放，我們預計2025 年下半年需求將出現顯著上昇放鬆一下。話雖如此，從綜合基礎來看，我們預計 2025 年第一季的營收將比 2024 年第一季成長 60% 至 62%，這得益於 Tyman 資產的貢獻。

However, consistent with recent market dynamics, we do expect volumes to be down in the first quarter of 2025 compared to the first quarter of 2024. On a consolidated basis, adjusted EBITDA margin is expected to be up about 25 basis points in the first quarter of 2025 compared to the first quarter of 2024. In addition, a tax rate of 23.5% is reasonable with interest expense of approximately $15 million in the first quarter of 2025.

然而，與最近的市場動態一致，我們預計 2025 年第一季的銷售量將與 2024 年第一季相比下降。從合併基礎來看，預計 2025 年第一季的調整後 EBITDA 利潤率將較 2024 年第一季上升約 25 個基點。此外，23.5% 的稅率是合理的，2025 年第一季的利息支出約為 1,500 萬美元。

Operator, we are now ready to take questions.

接線員，我們現在可以回答問題了。

(Operator Instructions) Steven Ramsey, Thompson Research Group.

（操作員指示）史蒂文·拉姆齊（Steven Ramsey），湯普森研究小組。

I wanted to think high level a bit given the market remains pretty stagnant and seems pretty well known out there. I guess my first question would then be on portfolio adjustment now that you've got Tyman and synergies are coming in at a nice clip, how are you assessing the portfolio broadly? And basically, are you considering any moves to divest anything that maybe is less core now that you have this bigger foundation?

鑑於市場仍然相當停滯且似乎相當知名，我想從高層次來思考一下。我想我的第一個問題是關於投資組合調整，現在您已經有了泰曼，而且協同效應正在迅速顯現，您如何全面評估投資組合？那麼，既然你們現在有了這個更大的基礎，你們是否考慮採取任何措施，剝離一些可能不那麼核心的業務？

The answer is, yes, we are evaluating the entire portfolio. I think the scale of the acquisition gives us an opportunity to do that. The approach that we'll take is we're going to obviously look at this from a customer perspective and see what pieces of portfolio add value to our customers and can help them grow. Secondly, then we'll look at what that means to potential growth as well as the profitability.

答案是肯定的，我們正在評估整個投資組合。我認為此次收購的規模為我們提供了這樣做的機會。我們採取的方法是，顯然是從客戶的角度來看待這個問題，看看哪些產品組合可以為我們的客戶增加價值，並且可以幫助他們成長。其次，我們來看看這對潛在成長和獲利能力意味著什麼。

I think we will use it as an opportunity to potentially divest noncore assets that do not add value to our customer that can drive margin improvement through just subtraction of the revenue. So nothing to specific at this point. But I think it's fair to say that, that will be a priority in some of our views as we go forward here in 2025.

我認為我們將利用它作為一個機會，潛在地剝離那些不會為我們的客戶增加價值的非核心資產，而這些資產只需減少收入就可以提高利潤率。因此目前還沒有什麼具體內容。但我認為可以公平地說，這將是我們 2025 年前進道路上的優先事項。

Okay. That's helpful. Also wanted to think about the EU segment. You've had two consecutive years with margin in the 23%, 24% range, very strong. Do you view that this kind of the normalized level to operate from or even build off of?

好的。這很有幫助。也想考慮歐盟部分。你們的利潤率已經連續兩年保持在 23% 至 24% 的範圍內，非常強勁。您是否認為這是一種可以作為運作依據或基礎的正常化程度？

Or would you say there are some -- this is maybe a peak level for current dynamics that's helping that?

或者你會說有一些——這可能是當前動態的峰值水平，有助於實現這一點？

Yes. No, it's a great question. I'm extremely proud of what our teams have done over the past years on margin improvement and really operational performance. I think, as we resegmented these businesses into these new segments, we were trying to accomplish a few things. One was to really address -- most of our businesses take a global approach.

是的。不，這是一個很好的問題。我對我們的團隊過去幾年在提高利潤率和實際營運績效方面所做的努力感到非常自豪。我認為，當我們將這些業務重新劃分為這些新的領域時，我們試圖完成一些事情。一是真正解決問題——我們的大多數業務都採取全球化策略。

And by separating or segmenting them the way we did in the legacy Tyman -- excuse me, legacy Quanex business, we kind of split them up geographically, which I think made it difficult or limited the opportunities to maybe get some sharing of best practices or synergies internally.

透過像我們在傳統的Tyman（對不起，傳統的Quanex 業務）中所做的那樣對它們進行分離或細分，我們在某種程度上將它們在地理上分開，我認為這使得我們很難或限制了分享最佳實踐的機會，或內部形成綜效。

So although we did a good job, I think it potentially put a little governor on those opportunities. I think taking more of a global approach and for example, our spacer business or some of the new businesses from Tyman and looking at it from a global perspective, it gives us the opportunity to set these things up, share best practices across the globe. So my anticipation, Steven, long answer here is that I don't think we're tapped out on margin improvement opportunities driven by internal projects.

因此，儘管我們做得很好，但我認為這可能會對這些機會造成一些阻礙。我認為採取更多的全球化方法，例如我們的墊片業務或來自Tyman 的一些新業務，並從全球視角來看待它們，這使我們有機會建立這些業務，並在全球範圍內分享最佳實踐。因此，史蒂文，我的預期是，這裡的長答案是，我認為我們還沒有挖掘出由內部專案推動的利潤率提高機會。

I think that there's still some runway, and that was part of the reason that we've established these segments the way we did: one, focused on what best delivers for our customer; and then two, how can we continue to tap into the opportunities to improve margin organically. That was the basis around our restructure.

我認為還有一些空間，這也是我們以這種方式建立這些細分市場的原因之一：第一，專注於為客戶提供最好的服務；第二，我們如何繼續挖掘機會，有機提高利潤率。這就是我們重組的基礎。

The only thing I'll add there, Steven, is as markets improve around the world and volumes tick up, at some point, you're going to get operating efficiency gains that will help margin longer term as well.

史蒂文，我唯一要補充的是，隨著全球市場的改善和交易量的上升，在某種程度上，你將獲得營運效率的提升，這也將有助於長期利潤。

So I think you can see we're pretty excited about the potential that these new segments can drive more to come, but we're pretty optimistic about that.

所以我想你可以看到我們對這些新領域能夠推動更多發展的潛力感到非常興奮，但我們對此非常樂觀。

No, that's great perspective. Maybe something to quickly ask there, Scott, that you alluded to better volumes and the margin benefits from that. Can you maybe talk to the kind of historic incremental margins from legacy Quanex. And given, as you put these two businesses together, where could incremental margins get better as volume starts to improve?

不，這是很棒的觀點。斯科特，也許您要快速問一下，您提到了更好的銷售以及由此帶來的利潤利益。您能否談談傳統 Quanex 的歷史增量利潤率？並且，如果將這兩項業務放在一起，那麼隨著銷售量開始提高，增量利潤率會如何提高？

That's a very difficult question to ask only because you would have to go product line by product line to see fixed cost versus variable cost and where we could. Where the operating leverage is better, obviously, as volume ticks up in a fixed -- more fixed cost, you're going to reap the rewards better than you would have variable cost.

這是一個很難回答的問題，因為你必須逐條檢查產品線才能了解固定成本與變動成本的對比，以及我們可以在哪裡找到它們。顯然，當經營槓桿更高時，隨著固定成本中交易量的增加，您將獲得比變動成本更好的回報。

That's a very difficult question to ask only because you would have to go product line by product line to see fixed cost versus variable cost and where we could. Where the operating leverage is better, obviously, as volume ticks up in a fixed -- more fixed cost, you're going to reap the rewards better than you would have variable cost.

這是一個很難回答的問題，因為你必須逐條檢查產品線才能了解固定成本與變動成本的對比，以及我們可以在哪裡找到它們。顯然，當經營槓桿更高時，隨著固定成本中交易量的增加，您將獲得比變動成本更好的回報。

Adam Thalhimer, Thompson Davis.

亞當塔希默、湯普森戴維斯。

I wanted to ask first about the Tyman synergies, how comfortable are you getting to the $30 million of synergies? And do you still think it takes two years to capture those?

我想先問關於 Tyman 協同效應的問題，您對 3000 萬美元的協同效應感覺如何？你還認為要花兩年的時間才能實現這些嗎？

Great question. So as we've embarked on this, I think you're always apprehensive about giving a number when you go into such a transformative type of deal. But as we progressed and now that we've launched the new segments, I think our comfort level around the stated $30 million is very strong and high. We have very strong confidence in achieving those levels. I think as the teams move through, the focus has started.

好問題。因此，當我們著手進行這項工作時，我認為，當您進行這種變革性交易時，您總是會對給出一個數字感到擔憂。但隨著我們的進步以及現在我們推出了新的細分市場，我認為我們對所述 3000 萬美元的信心非常強烈且高漲。我們非常有信心達到這些水準。我認為，隨著球隊的進步，焦點已經開始集中。

We focused on the consolidation of the corporate offices, which we've talked about already, and that's gone according to plan and maybe a little quicker than anticipated.

我們專注於我們已經討論過的公司辦公室的合併，而這項工作正在按計劃進行，可能比預期的要快一些。

Now that the divisions are starting to operate within the new segments, I think we're very pleased at the results that we're seeing these newly created teams generate and the amount of opportunities that they're creating helps to offset any potential downsides and unknowns that you don't know. And then finally, I think we become even more convinced that longer-term commercial types of growth synergies that are created from this combination will be there. So again, another long answer to your question, but I think we're extremely confident in meeting and hopefully beating the guidance that we've given.

現在各個部門開始在新的細分市場中運作，我認為我們對這些新成立的團隊所取得的成果感到非常高興，他們創造的機會有助於抵消任何潛在的負面影響，您不知道的未知事物。最後，我認為我們更加確信，這種結合將會產生長期的商業成長綜效。所以，我再次對你的問題進行了很長的回答，但我認為我們非常有信心達到並希望超越我們給予的指導。

Okay. And George, you talked about sluggish demand over the holiday season and in the winter. I'm curious what -- is that a continuation of the trends you've seen in fiscal year '24? Or are you contemplating incremental weakness?

好的。喬治，您談到了假期和冬季需求低迷的問題。我很好奇——這是您在 24 財年看到的趨勢的延續嗎？還是你正在考慮逐漸減弱的弱點？

I'll start off and then I can let Scott add any color, too. One, I think what we've said, this is not an abnormal type of thing that we see every year in terms of softness in our fiscal Q1. I think in certain markets, for example, the cabinet market that we serve, I think you see our customers using it as an opportunity to adjust their inventory levels and using the holidays as an opportunity to reconcile volumes before the build.

我先開始，然後我可以讓斯科特也添加任何顏色。首先，我認為我們已經說過，這並不是我們每年第一財季都會看到的異常現象。我認為在某些市場，例如我們服務的櫥櫃市場，我認為您會看到我們的客戶利用它作為調整庫存水平的機會，並利用假期作為在建設之前協調數量的機會。

So I think that has had a little bit of an incremental impact. I think it's a continuation on -- for the most part, it's a continuation of what we've seen this year, just -- and being emphasized on our normal seasonality pattern. It's nothing that we've not anticipated. And I think it's playing out exactly as what we've modeled and anticipated previous. Scott?

所以我認為這產生了一些漸進的影響。我認為這是一種延續——在很大程度上，這是我們今年所見情況的延續——並強調了我們的正常季節性模式。這並不是我們未能預料到的事情。我認為它的進展正如我們之前建模和預期的那樣。史考特？

Yes. I mean, I would agree with everything George just said, and we are expecting volumes to be down year-over-year in 1Q '25 versus '24, but not by a significant amount. And we do expect markets to tick up starting in the spring selling season once we feel like consumer confidence improves.

是的。我的意思是，我同意喬治剛才說的一切，我們預計 2025 年第一季的銷量將與 2024 年相比同比下降，但幅度不會很大。一旦我們感覺到消費者信心增強，我們確實預期市場將從春季銷售季節開始回升。

I'm not sure we've talked to one customer at this point that doesn't have that same. I think that there is a fairly strong optimism that the back half of the year we'll see it. Again, the market indicators and the need for housing as the Fed continues or anticipated that they'll continue to cut rates. As inflation starts flattening a little bit and hopefully turning the other way, I think we will see consumer confidence grow in the market, both R&R and new build, there's pent-up demand that's ready to be released. And I think we're hearing that optimism from almost every customer that we talk to.

我不確定我們目前是否與一位沒有相同情況的客戶交談過。我認為，人們有相當強烈的樂觀態度認為今年下半年我們將會看到這一點。再次，隨著聯準會繼續或預期將繼續降息，市場指標和住房需求。隨著通貨膨脹開始趨於平穩，並有望出現相反的趨勢，我認為我們將看到市場消費者信心增強，無論是 R&R 還是新建房屋，都有被壓抑的需求等待釋放。我想我們從幾乎每一位交談過的客戶那裡都聽到了這種樂觀的聲音。

Reuben Garner, Benchmark.

魯本·加納，基準。

To start, tariffs has been a big question of late. I think last go around, you guys might have saw some benefit in your cabinets business from kind of reshoring opportunities. With the Tyman acquisition coming along, can you just talk about any exposure that they have to imports and whether or not maybe any competitors that they have would be at risk, I guess, from bringing products in overseas?

首先，關稅問題最近一直是一個大問題。我想，上次你們可能已經從回流機會中看到了櫥櫃業務的一些好處。隨著 Tyman 收購案的臨近，您能否談談他們在進口方面面臨的風險，以及他們的競爭對手是否會因將產品引入海外而面臨風險？

I think as we look at the Tyman organization, we spend a lot of time talking about the risks from tariffs as well as the opportunities. The Tyman team has done a phenomenal job of building a supply chain organization that is built to capitalize on those opportunities as well as provide opportunities to source locally, should there become any sort of retaliatory or any sort of tariff war. So I think we feel very good about the steps that the Tyman team have taken and feel that we've got a pretty good balance to really address situations should it become a trade war or should any of the tariffs provide opportunities. I think we're ready to capitalize on that and are well protected for any of the negatives.

我認為，當我們審視泰曼組織時，我們花了很多時間討論關稅帶來的風險和機會。Tyman 團隊在建立供應鏈組織方面做得非常出色，該組織旨在利用這些機會並提供本地採購的機會，以防出現任何形式的報復或關稅戰。因此，我認為我們對泰曼團隊採取的措施感到非常滿意，並認為如果貿易戰或任何關稅帶來機遇，我們已經取得了很好的平衡，能夠真正應對各種情況。我認為我們已經準備好利用這一點，並且可以很好地抵禦任何負面影響。

Obviously, Reuben, you know our business well. And I think from the cabinet side of the business, specifically in the North America, tariffs have tended to help that market, and I don't see anything changing that should that -- so that would be a potential opportunity for our business should there be any additional tariffs on wood type of products.

顯然，魯本，你很了解我們的業務。我認為從櫥櫃業務的角度來看，特別是在北美，關稅往往對這個市場有所幫助，我認為這種情況不會發生任何變化——所以如果是否對木質產品徵收額外關稅。

Got it. And then from just a big picture pricing perspective for you guys, Scott, I know you gave some pieces about this quarter and this year and you had a couple of things working against you. Like when we think about the full year going forward, and I know you're not ready to give guidance yet, but would you expect at this point that pricing would be like neutral to up even? Or is there more kind of headwinds on the way?

知道了。然後從你們的大局定價角度來看，斯科特，我知道你給了一些關於本季度和今年的信息，並且遇到了一些對你不利的事情。例如當我們考慮未來全年的情況時，我知道您還沒有準備好給予指導，但是您是否預計現在的價格會是中性甚至上漲？或者說，前進的道路上還會出現更多阻力嗎？

I mean, there's potential for pricing to be neutral to up. And the way we usually model is we don't bake in a lot of expectation that pricing is going to go up or down. It's more driven by volume expectations. But it's really going to depend on what's going on with the macro and raw material by raw material.

我的意思是，價格有可能保持中性甚至上漲。我們通常的建模方式是，我們不會對價格的上漲或下跌抱持太多的預期。它更多地受到銷量預期的驅動。但這實際上取決於宏觀和原材料的具體情況。

Yes. I think this goes right back to your first question. We're being pretty cautious on any sort of pricing guidance because the impact of tariffs, anything there, what that does to any sort of inflationary pressure and the impacts that potentially have on labor wages and anything there, there's so many moving pieces. I think we're being very cautious in terms of our guidance around price.

是的。我認為這又回到了你的第一個問題。我們對任何類型的定價指引都非常謹慎，因為關稅的影響，以及任何有關的影響，對任何通膨壓力的影響，以及對勞動力工資的潛在影響等等，有太多的不確定因素。我認為我們對價格指導非常謹慎。

I think over the past few years, I think we've -- and it's proved out in the legacy Quanex numbers where we have been able to get price, we've done it. We're not abusing our ability, and I think we'll be focus on being a fair supplier in the world, but it will be dictated by the input prices of what we see.

我認為在過去的幾年裡，我們已經——而且傳統的 Quanex 數字已經證明了我們能夠獲得價格，我們做到了。我們不會濫用我們的能力，我認為我們將專注於成為世界上公平的供應商，但這將取決於我們所看到的投入價格。

Julio Romero, Sidoti and Company.

胡里奧·羅梅羅 (Julio Romero)、Sidoti 和公司。

I wanted to ask about the macro a little bit here. Some of your peers have called out affordability constraints. You talked about winning consumer confidence and kind of mortgage rates kind of persisting higher. Can you guys just talk about what you're seeing on that front? And maybe help us think about why your viewpoint might be a little nuanced compared to some peers?

我想在這裡問一些有關巨集的問題。您的一些同行已經指出了負擔能力的限制。您談到了贏得消費者信心以及抵押貸款利率持續走高。你們能談談你們在這方面看到的情況嗎？也許您可以幫助我們思考為什麼您的觀點與一些同行相比可能有些微妙？

Yes. I think we see the same things and in talking to our customers. I think the R&R market has been hit hard, especially in certain segments like for us, our cabinet business, which tends to be much more of a discretionary item than a window or a door. With that being said, as interest rates start dropping, I think and potentially the overall affordability of housing, if the price flattens and the interest rates drop, that type of movement does tend to spur on R&R and then people buying new homes, we'll do more of the discretionary projects, the kitchens or the bath remodel some.

是的。我認為我們在與客戶交談時也看到了同樣的事情。我認為R&R市場受到了嚴重打擊，特別是在某些領域，例如對我們來說，櫥櫃業務，它往往是一種可自由支配的物品，而不是窗戶或門。話雖如此，我認為，隨著利率開始下降，以及住房的整體可負擔性，如果價格趨於平穩，利率下降，這種走勢確實會刺激 R&R，然後人們購買新房，我們'我會做更多可自由支配的項目，對廚房或浴室進行一些改造。

So yes, I think to answer your question, Julio, we are seeing it. I think that there are -- it has been sluggish in all of 2024. I think that, that's built into our forecast and why we're saying that we think volumes will be sluggish over the next few months. But I think most of the macro indicators are when that affordability comes down a little bit and the interest rates drop, it will spur on some pretty pent-up demand. We see it, and we're pretty confident in it.

是的，我想回答你的問題，胡里奧，我們看到了它。我認為是的——整個 2024 年它一直處於低迷狀態。我認為這已經包含在我們的預測中，這也是我們為什麼說未來幾個月銷售將會疲軟的原因。但我認為大多數宏觀指標表明，當負擔能力略有下降且利率下降時，就會刺激一些被壓抑的需求。我們看到了這一點，並且非常有信心。

Got it. That's very helpful there. And then can you maybe just compare where consumer confidence is right now in North America versus Europe maybe compared to like three months ago?

知道了。這非常有幫助。那麼，您能否比較一下目前北美和歐洲的消費者信心狀況，並與三個月前進行比較？

I think what we've started to see is that there's a little more confidence coming back in certain parts of Europe. I think we've seen signs that the UK, which led the downfall, to be honest, they started seeing a slowdown much earlier than North America did. I think we've seen maybe slight signs of improvement there. The hard part there is that, that will always be tempered by some of the geopolitical things going on in Eastern Europe with Russia and Ukraine.

我想我們已經開始看到歐洲某些地區的信心逐漸恢復。我認為我們已經看到一些跡象，表明引領經濟衰退的英國比北美更早出現經濟放緩。我想我們可能已經看到那裡略微改善的跡象。困難的是，這將始終受到東歐與俄羅斯和烏克蘭之間發生的一些地緣政治事件的緩和。

If for whatever reason that conflict were to come to an end, I think you're going to see probably the European markets improve fundamentally faster. But again, I quantify -- I just qualify that based on -- there are things happening over there that are out of normal market controls. I think that the European markets are a little further along in potential recovery.

無論出於什麼原因，如果這場衝突得以結束，我認為你可能會看到歐洲市場從根本上更快地改善。但是，我再次量化——我只是根據那裡發生的事情限定其範圍，這些事情超出了正常的市場控制範圍。我認為歐洲市場的潛在復甦還會持續一段時間。

But North America, the market is so large and the consumer mentality here is a little quicker to take risks and be a little more open with spending. So any sign of improvement, I think, could spur on a faster recovery in North America than you would in Europe.

但北美市場如此之大，這裡的消費者心態更願意承擔風險，消費也更開放。因此，我認為，任何改善的跡像都可能刺激北美比歐洲更快實現復甦。

Very helpful there. Maybe turning to your resegmentation. You've obviously been very thoughtful about the new segment structure. Can you maybe peel back the onion a little bit about the strategic rationale for the three new segments? And then secondly, in the prepared remarks, I believe you called out maximizing synergy ops and positioning for growth as two key items there.

非常有幫助。也許轉向你的重新分割。您顯然對新的細分結構進行了深思熟慮。能否稍微詳細說明一下這三個新細分市場的策略原理？其次，我相信您在準備好的發言中提出了最大化協同效應和定位成長是兩個關鍵事項。

Are those two the North Star for the new segments and the new leaders?

他們兩個會是新領域和新領導者的北極星嗎？

So as I peel us back a little bit, one, we do try to -- our strategy all along is trying to let people know, yes, we serve the window and door markets. And yes, we serve the cabinet markets, and they're a big part of what we do, but we make not one window or door or one finished cabinet. That's not who we are. We are a manufacturing company that has a broad set of core competencies. And so our segmentation is really based on that.

所以，讓我稍微回顧一下，首先，我們確實在嘗試——我們的策略始終是試圖讓人們知道，是的，我們服務於門窗市場。是的，我們服務於櫥櫃市場，這是我們業務的重要組成部分，但我們生產的不僅僅是一扇窗戶、一扇門，甚至一個成品櫥櫃。那不是我們的本性。我們是一家擁有廣泛核心競爭力的製造公司。我們的細分確實是基於此。

We don't even want our internal organization to sit here and look and view ourselves as a window and door company or a cabinet company. It limits our potential to go after new markets, new systems, new opportunities.

我們甚至不希望我們的內部組織坐在這裡，將我們自己視為門窗公司或櫥櫃公司。它限制了我們開拓新市場、新系統、新機會的潛力。

So I think for us, segmenting in this way: one, I think it opens our development teams to think much bigger than we currently are; two, it gives us the opportunity to really build off of what is a strength of Quanex and that's our manufacturing capabilities. And I think we've proved that over the last five to seven to eight years that we're pretty good operators. So it gives us an opportunity to capitalize on that, which when done that way, then it fuels the inorganic opportunities much faster.

因此我認為對我們來說，以這種方式進行細分：首先，我認為這可以讓我們的開發團隊擁有比現在更廣闊的思維；二是它讓我們有機會真正發揮 Quanex 的優勢，也就是我們的製造能力。我認為，在過去五到七到八年的時間裡，我們已經證明我們是相當優秀的營運商。所以這為我們提供了一個利用這一點的機會，這樣就可以更快地為無機機會提供動力。

So I think that's the way we approach this, Julio is really, one, what's going to drive the fastest growth; and then two, how do we use that those new segments to really optimize what we do. And I feel really good about the new segments. Each one of these then combines some of the legacy Tyman and some of the legacy Quanex. So when you've got people from both organizations working together, you're able to see and create new things rather than being so blindfolded into what you've always done.

所以我認為，這就是我們處理這個問題的方式，胡利奧 (Julio) 確實是一個能夠推動最快成長的人；第二，我們如何利用這些新的細分市場來真正優化我們的工作。我對於新的片段感到非常滿意。這些中的每一個都結合了部分傳統的 Tyman 和部分傳統的 Quanex。因此，當兩個組織的人員一起工作時，你就能看到並創造出新的東西，而不是被束縛在一貫做的事情上。

So each of these segments include a little bit from both organizations. And we think that, that was really important. And we're extremely excited about the potential that that's going to drive.

因此，每個部分都包含來自兩個組織的一點內容。我們認為這確實非常重要。我們對它所蘊含的潛力感到非常興奮。

And if I could sneak one more in maybe for Scott here is, I appreciate the first quarter kind of outlook of interest expense of $15 million. Is that kind of a fair quarterly run rate to maybe assume for now for fiscal '25. And then are you kind of assuming any debt paydown at this point for fiscal '25?

如果我可以再偷偷說一句，也許對於斯科特來說，我很欣賞第一季 1500 萬美元的利息支出前景。這對於 25 財年來說是一個合理的季度運行率嗎？那麼，您是否假設目前會償還 25 財年的任何債務？

We absolutely assume we are going to pay down debt throughout the year. I mean that's a clear priority for us. So $15 million for the first quarter, trending down a little bit thereafter, and we'll give more detail at the Investor Day. But I think $15 million will be the high watermark for interest expense this year.

我們絕對相信我們將全年償還債務。我的意思是，這對我們來說顯然是一個優先事項。第一季的收入為 1500 萬美元，此後略有下降，我們將在投資者日提供更多詳細資訊。但我認為 1500 萬美元將是今年利息支出的最高水準。

And with that, I would now like to turn it back over to George Wilson for any closing remarks.

現在，我想將發言權交還給喬治·威爾遜，請他作最後發言。

Thanks, everyone, for joining. We're extremely excited about the future of Quanex and look forward to providing more detail about the combined company at our Investor and Analyst Day at the NYSE on February 6, 2025. I'd like to wish you all a safe and happy holiday. Thank you.

感謝大家的加入。我們對 Quanex 的未來感到非常興奮，並期待在 2025 年 2 月 6 日紐約證券交易所的投資者和分析師日上提供有關合併後公司的更多詳細資訊。我祝福大家有個安全、快樂的假期。謝謝。

Thank you for participating in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

感謝大家參加今天的會議。該計劃確實結束了。您現在可以斷開連線。祝大家有個愉快的一天。