P&F Industries Inc (PFIN) 2023 Q2 法說會逐字稿

Hello and welcome to the P&F Industries Q2 earnings call. My name is George. I'll be your coordinator for today's event. Please note that this conference is being recorded. (Operator Instructions)

您好，歡迎參加 P&F Industries 第二季度財報電話會議。我的名字是喬治。我將擔任你們今天活動的協調員。請注意，本次會議正在錄製中。 （操作員說明）

I'd like to hand the call over to your host today, Mr. Richard Goodman, to begin today's conference. Please go ahead, sir.

我想把今天的會議轉交給主持人理查德·古德曼先生，開始今天的會議。請繼續，先生。

Thank you, operator. Good morning and welcome to P&F Industries second-quarter 2023 conference call. With us today from management are Richard Horowitz, Chairman, President, and CEO; and Joseph Molino, Chief Operating Officer and Chief Financial Officer.

謝謝你，接線員。早上好，歡迎參加 P&F Industries 2023 年第二季度電話會議。今天與我們一起出席的還有來自管理層的董事長、總裁兼首席執行官理查德·霍洛維茨 (Richard Horowitz)；首席運營官兼首席財務官約瑟夫·莫利諾 (Joseph Molino)。

Before we get started, I wish to remind you that any forward-looking statements discussed in today's call by our management, including those related to the company's future performance and outlook, are based upon the company's historical performance and current plans, estimates and expectations, which are subject to various risks and uncertainties and could cause the company's actual results for future periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the company.

在我們開始之前，我想提醒您，我們管理層在今天的電話會議中討論的任何前瞻性陳述，包括與公司未來業績和前景相關的陳述，都是基於公司的歷史業績和當前計劃、估計和預期，這些都受到各種風險和不確定性的影響，並可能導致公司未來時期的實際業績與公司或代表公司做出的任何前瞻性聲明中表達的結果存在重大差異。

These risk factors and uncertainties are described in today's press release under forward-looking statements, as well as in our most recent SEC filings, which you can find on the company's website, including our 2022 annual report on Form 10-K and our quarterly reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made. And the company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.

這些風險因素和不確定性在今天的新聞稿中的前瞻性陳述以及我們最近向SEC 提交的文件中進行了描述，您可以在公司網站上找到這些文件，包括我們的10-K 表格2022 年年度報告和季度報告表格 10-Q 上。前瞻性陳述僅代表其作出之日的情況。公司不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新信息、未來發展還是其他原因。

I would also like to remind all participants on this call that, with respect to the question-and-answer portion of today's conference call, the length of the questions from any particular stockholder or other caller, together with management's responses, are limited to 20 minutes. Additionally, please be aware that during the question-and-answer session, management will only answer questions directly related to the company's second-quarter 2023 results of operations and financial condition as disclosed in a press release published earlier today.

我還想提醒本次電話會議的所有參與者，就今天電話會議的問答部分而言，任何特定股東或其他來電者的問題以及管理層的回答的長度限制為 20 秒。分鐘。此外，請注意，在問答環節中，管理層只會回答與今天早些時候發布的新聞稿中披露的公司 2023 年第二季度運營業績和財務狀況直接相關的問題。

We must insist that you adhere to this procedure. Management will not be entertaining any questions that go beyond the scope of this call. And with that, I would now like to turn the call over to Richard Horowitz. Good morning, Richard.

我們必須堅持要求您遵守此程序。管理層不會回答任何超出本次電話會議範圍的問題。現在，我想將電話轉給理查德·霍洛維茨。早上好，理查德。

Good morning, Rich. Thank you, and good morning, everybody. Thank you all for joining us this morning to discuss P&F's results for the three- and six-month periods ending June 30, 2023.

早上好，里奇。謝謝大家，大家早上好。感謝大家今天早上加入我們，討論 P&F 截至 2023 年 6 月 30 日的三個月和六個月的業績。

I hope all of you are doing well as our country and the world continues to face ongoing economic pressures, as well as the ongoing crisis in Ukraine and general global unrest. We pray for a rapid and peaceful end to all these conflicts.

我希望你們所有人都一切順利，因為我們的國家和世界繼續面臨持續的經濟壓力，以及烏克蘭持續的危機和全球普遍的動盪。我們祈禱所有這些衝突迅速、和平地結束。

I would like to direct your attention to the company's press release that was released earlier today, which includes the company's June 30, 2023, balance sheet statement of operation, statements of cash flows, and a discussion related to the company's results for the three- and six-month periods ending June 30 of this year, and how these results compare to the same periods in 2022. I wish to highlight a few key factors in our release.

我想請您注意今天早些時候發布的公司新聞稿，其中包括公司截至 2023 年 6 月 30 日的資產負債表運營狀況表、現金流量表以及與公司三季度業績相關的討論 -以及截至今年6月30 日的六個月期間，以及這些結果與2022 年同期的比較。我想強調我們發布的幾個關鍵因素。

Our consolidated revenue declined 9.2%. However, and more importantly, our gross margin at Florida Pneumatic and Hy-Tech improved 3.9% and 8.1%, respectively. Total operating expenses declined 2%, and rising interest rates were, of course, the primary cause for the increase in interest expense.

我們的綜合收入下降了 9.2%。然而，更重要的是，Florida Pneumatic 和 Hy-Tech 的毛利率分別提高了 3.9% 和 8.1%。總營業費用下降了2%，利率上升當然是利息費用增加的主要原因。

Finally, in order to make use of everyone's time and yet be mindful of the purpose of this conference call, I would like to remind you all the following. I apologize for being repetitive to Rich Goodman.

最後，為了充分利用大家的時間，同時也牢記本次電話會議的目的，我想提醒大家以下幾點。我很抱歉向里奇·古德曼重複。

First, as has become our standard practice, we will move directly to a question-and-answer session and not restate what is already in this morning's press release. Secondly, please be aware that we will only be answering questions directly related to the company's second quarter of this year, results of operations, and financial condition. We must insist you adhere to this procedure.

首先，正如我們的標準做法一樣，我們將直接進入問答環節，而不是重述今天上午新聞稿中已經包含的內容。其次，請注意，我們只會回答與公司今年第二季度、經營業績和財務狀況直接相關的問題。我們必須堅持您遵守此程序。

Finally, please be mindful of the 20-minute time limit, as previously noted, which we plan to enforce. To the extent shareholders or other callers with pertinent questions, with multiple questions, please complete your portion of the Q&A within the 20-minute time limit, and then we will move on to the next questioner.

最後，請注意我們計劃強制執行的 20 分鐘時間限制（如前所述）。如果股東或其他來電者有相關問題，如果有多個問題，請在 20 分鐘的時限內完成您的問答部分，然後我們將轉向下一個提問者。

And with that, we would be happy to answer pertinent questions that you all may have. Operator, you can open up the lines. Thank you.

因此，我們很樂意回答大家可能提出的相關問題。接線員，您可以開通線路了。謝謝。

(Operator Instructions) Andrew Shapiro, Lawndale Capital Management.

（操作員說明）Andrew Shapiro，Lawndale Capital Management。

Hi, good morning. Can you hear me?

早上好。你能聽到我嗎？

Good morning, Andrew.

早上好，安德魯。

Yeah.

是的。

Okay. So first, regarding Florida Pneumatic, if I could. Boeing's large 787 Dreamliner inventory now has begun delivering. Production is expected to begin ramping in the coming months. Are you seeing an uptick in the demand for 787 tools? And then, of course, I've got a follow-up on the 737.

好的。首先，如果可以的話，關於佛羅里達氣動。波音公司的大量 787 夢想飛機庫存現已開始交付。預計產量將在未來幾個月開始增加。您是否發現 787 工具的需求有所增加？當然，我還有 737 的後續行動。

Joe, you can answer that question.

喬，你可以回答這個問題。

Yeah. We're on that program. It is a fraction of the 737 program. But obviously, any uptick in production is helpful. But as you know, we're not selling tools per plane. So an uptick in production doesn't mean we get an order next week.

是的。我們正在參加那個計劃。它是 737 計劃的一小部分。但顯然，產量的任何增長都是有幫助的。但如您所知，我們並不是按飛機銷售工具。因此，產量上升並不意味著我們下週就能收到訂單。

But yeah, it's a positive development; no doubt. And as I said, we're on that program. So (multiple speakers) --

但是，是的，這是一個積極的發展；毫無疑問。正如我所說，我們正在執行該計劃。所以（多位發言者）——

Right. And then the 737 MAX, their production is now predicted by Boeing to really ramp up. And they're going to tool up a new lineup in Everett.

正確的。然後是 737 MAX，波音公司現在預測其產量將真正增加。他們將在埃弗雷特組建新陣容。

How far in advance do they typically order and make demands for that since that ramp-up is going to be next year for the new production line and the hiring that they're doing? And I believe they said they want to be up to 38 planes a month by the end of this year.

由於新生產線和招聘工作將於明年進行，他們通常會提前多長時間訂購併提出要求？我相信他們說他們希望在今年年底之前每月擁有 38 架飛機。

Yeah. We really don't have a tracking to know how far ahead of time they order the tools or if they order it ahead of time at all. And secondly, their numbers are -- we see the same numbers you do, and we don't know anything more than you do in that regard.

是的。我們確實無法跟踪了解他們提前多久訂購工具，或者他們是否提前訂購。其次，他們的數字是——我們看到的數字與你們看到的相同，在這方面我們所知道的並不比你們多。

However, when we were -- when they claimed they were doing 22 planes a month, which goes back maybe six months, I guess, or something along those lines, they were -- according to our people who were in Boeing's factory pretty much every day, it was nowhere close to that number. So I don't know what's the true number or what it is, but, certainly, I think the takeaway is it'll be much better going forward for the next couple of years. That's the takeaway, whatever that is.

然而，當我們——當他們聲稱他們每月生產22 架飛機時，我猜這可能可以追溯到六個月前，或者類似的事情——據我們在波音工廠的人說，他們幾乎每天都在生產22 架飛機。那天，這個數字還遠未達到這個數字。所以我不知道真實的數字是多少，但是，當然，我認為未來幾年的情況會好得多。這就是要點，無論是什麼。

And your level of kind of business with them right now is about kind of what percent compared to pre-pandemic and frankly, compared to when they slowed the production line down when the 737 MAX got initially grounded, which was actually before the pandemic. You were at around 50% or so before. Is it the same, or you ticked up a little bit?

坦率地說，與大流行前相比，與 737 MAX 最初停飛時（實際上是在大流行之前）他們放慢了生產線時相比，你現在與他們的業務水平大約是百分之幾。之前你的進度是50%左右。是一樣的，還是你稍微提高了一點？

I'd say we're probably 60% or so of pre-pandemic levels. I wouldn't even say pandemic. It's pre-crash, really. The crash was really more the issue for them, not the pandemic.

我想說我們可能是大流行前水平的 60% 左右。我什至不會說流行病。真的，這是崩潰前的情況。對他們來說，真正的問題更多是車禍，而不是流行病。

Yeah, right. Okay. So that's a decent amount of upswing, but your aerospace division seems to be -- subdivision of Florida Pneumatic seems to be doing pretty well.

是的，對。好的。所以這是一個相當大的上升幅度，但你的航空航天部門似乎——佛羅里達氣動的細分部門似乎表現得相當不錯。

On the last call, you discussed a new suite of cordless installation tools for aerospace from Jiffy that you were working on. One of which, you said on the last call, you were taking orders in Europe, including from Airbus. And you and the customers were very excited about this.

在上次通話中，您討論了您正在開發的 Jiffy 的一套新的航空航天無線安裝工具。您在上次通話中表示，其中之一是您在歐洲接受訂單，包括來自空客的訂單。您和客戶對此感到非常興奮。

It's been another three months. Did those tools get delivered, and how did the initial tests work out? And when do you expect follow-on orders of that initial tool? And you also said you have a second or more tools in this line that would be ready for testing in the field, I think, in the present third quarter we're in. So what's the status of that as well?

又過去三個月了。這些工具是否已交付？最初的測試效果如何？您預計什麼時候會收到該初始工具的後續訂單？您還表示，您在該系列中擁有第二個或更多工具，我想，在我們目前所處的第三季度，這些工具將準備好進行現場測試。那麼，它的狀態又如何呢？

Okay. So we are shipping -- we're taking orders and shipping the first tool. It's ramping up. It's no one particular customer. We are taking orders for that tool worldwide, and it's shipping.

好的。所以我們正在發貨——我們正在接受訂單並發貨第一個工具。它正在加速。這不是某個特定的客戶。我們正在全球範圍內接受該工具的訂單，並且正在發貨。

And just to be clear, we're past the testing phase. These are shipments for -- to go right to the lines to produce jets. The testing phase is over for that tool.

需要明確的是，我們已經過了測試階段。這些貨物直接運往生產噴氣式飛機的生產線。該工具的測試階段已經結束。

Great.

偉大的。

We're -- the second tool is in test. Sometimes, they're internal tests. Sometimes, we send a few to some customers for -- to work. So that's still in process. But I think that's probably not really going to be shipping -- we're not going to be taking production orders probably until closer to the end of the year, the beginning of 2024, for the second version.

我們正在測試第二個工具。有時，它們是內部測試。有時，我們會向一些客戶發送一些用於工作。所以這仍在進行中。但我認為這可能不會真正發貨——我們可能要到接近年底、2024 年初才會接受第二個版本的生產訂單。

And Andrew, I'll just -- I'll take -- just one other thing I'll just add -- comment on your comment. The -- our aerospace business is doing extremely well, extremely well. Very good backlog. Very good prospects. Quoting is very high.

安德魯，我會 - 我會採取 - 我會添加另一件事 - 對你的評論發表評論。我們的航空航天業務做得非常好。非常好的積壓。前景非常好。引用率非常高。

It's a -- it's really a very -- we're very, very optimistic. And we don't generally talk about things like this on these calls, but we're very, very optimistic about (multiple speakers) --

我們非常非常樂觀。我們通常不會在這些電話中談論這樣的事情，但我們非常非常樂觀（多個發言者）——

Yeah, no. You generally don't, so I'm pleased to hear that you're even excited. So that's good.

是的，不。你通常不會，所以我很高興聽到你甚至很興奮。所以這樣很好。

Yeah.

是的。

Especially with Boeing having -- got another, we'll call it, 40% air pocket to get back up to. And we know they will down the road. The --

尤其是波音公司有另一個，我們稱之為，40% 的氣囊可以恢復。我們知道他們會繼續前進。這 -

And I'll just give you one other piece of color that -- you can move on. I don't want to waste your time with this. But our percentage of business with Boeing is down even though their business is up, if you understand what I'm saying. We're -- they're a slightly smaller percentage of our overall aerospace business, I believe, pretty sure. (multiple speakers) --

我只會給你另一種顏色——你可以繼續前進。我不想在這件事上浪費你的時間。但是，儘管波音公司的業務量增加了，但我們與波音公司的業務量百分比卻下降了，如果你明白我的意思的話。我相信，他們在我們整個航空航天業務中所佔的比例略小一些。 （多位發言者）——

Well, that would make sense, simply because their business level is down with you. And you hadn't -- you were trying to get into Airbus before the pandemic, and now you've gotten into them. So that just makes a lot of sense that you've filled the hole with other aerospace customers. So when Boeing returns, your aerospace division presumes -- your aerospace subsegment presumably will be setting records for the company.

嗯，這是有道理的，因為他們的業務水平與你有關。而你沒有——在大流行之前你試圖進入空中客車公司，現在你已經進入了他們。因此，您用其他航空航天客戶來填補這個空缺是很有意義的。因此，當波音公司回歸時，您的航空航天部門可能會為該公司創造記錄。

Home Depot, going on in Florida Pneumatic. Your release mentions that retail customer -- it's Home Depot -- reduced the number of SKUs of their -- the Husky line, a pneumatic tool line you manufacture for them. What happens to the inventory you had or still have of these no longer stocked units? And will your inventory levels come down further and cash be received?

家得寶 (Home Depot)，在佛羅里達氣動進行。您的新聞稿提到零售客戶（家得寶）減少了他們的 Husky 系列（您為他們製造的氣動工具系列）的 SKU 數量。您擁有或仍然擁有的這些不再庫存的產品的庫存會怎樣？您的庫存水平會進一步下降並收到現金嗎？

Okay. Inventory has come down -- I don't have in front of me -- call it $3 million, mostly related to the Home Depot. There are a couple of things going on.

好的。庫存已經下降了——我面前沒有——稱之為300萬美元，主要與家得寶有關。有幾件事正在發生。

I think it's something like six SKUs were dropped approximately since last year. But more importantly, we were stocking up pretty heavily throughout all of last year and into the beginning of this year because of the delays we were experiencing in getting product here from Asia.

我認為自去年以來大約有 6 個 SKU 被丟棄。但更重要的是，我們從去年全年到今年年初都進行了大量庫存，因為我們從亞洲採購產品時遇到了延誤。

Those delays have come down. And we've been able to get away with keeping less safety stock, and I think we're pretty comfortable with where the stocking levels are now. And that cash is pretty much in the door at this point.

這些延誤已經減少。我們已經能夠保持較少的安全庫存，而且我認為我們對現在的庫存水平非常滿意。目前，這筆現金幾乎已經到手了。

But when they discontinue SKUs and you were stocking units, what happens? They are obligated and they'll take those out, and then those SKUs are discontinued?

但是，當他們停止供應 SKU 而您卻在備貨時，會發生什麼情況？他們有義務將其刪除，然後這些 SKU 就停產了？

Yeah. They take all the old merchandise.

是的。他們拿走了所有舊商品。

Yeah. We run that out. We don't get stuck with anything.

是的。我們用完了。我們不會被任何事情困住。

Yeah. We don't have -- don't get stuck with anything.

是的。我們沒有——不要被任何事情困住。

It's a well-orchestrated conversation and discussions with us. We get it all out the door.

這是與我們精心策劃的對話和討論。我們把一切都拿出來了。

Okay.

好的。

And Andrew, as you know -- you've been here (technical difficulty) to know -- we've gone through this two or three times with them with new lines and new products, maybe even four times over the years. So it's --

安德魯，正如你所知 - 你已經在這裡（技術難度）知道 - 我們已經與他們一起經歷了兩三次新生產線和新產品，這些年來甚至可能四次。所以就是 -

Yeah.

是的。

We never had any old inventory left.

我們從來沒有留下任何舊庫存。

Yeah. Moving on to Hy-Tech, what have the shipments to the major OEM customer you have referred to on prior calls? Have they continued or increased their level of activity in this current quarter? It looks like it did okay. Can you also comment on their business with you in the present quarter?

是的。接下來談談 Hy-Tech，您在之前的電話中提到的主要 OEM 客戶的出貨量是多少？他們在本季度是否繼續或增加了活動水平？看起來做得還不錯。您能否評論一下他們本季度與您的業務？

The large OEM customer places fairly large blankets that go out many months, could've been -- be six or seven months' worth of product or more. So deliveries can be spiky.

大型 OEM 客戶放置了相當大的毛毯，這些毛毯的使用壽命可能是六七個月或更長時間。因此，交貨量可能會激增。

We work them into our production plan and get them out the door in an organized fashion. So I don't know that I would glean too much from any particular month's shipments to that customer. We kind of take a look at it over the quarter or even quarters at a time.

我們將它們納入我們的生產計劃，並以有組織的方式將它們出廠。所以我不知道我會從任何特定月份向該客戶的發貨中收集太多信息。我們會在一個季度甚至一個季度內一次審視它。

The good news is we're in great shape with them. We're excited about the future with them. We're working on few things. And we're hopeful that we can do better even going forward on top of the levels we currently even have.

好消息是我們和他們相處得很好。我們對與他們一起的未來感到興奮。我們正在做一些事情。我們希望我們能夠在目前的水平之上做得更好。

Okay.

好的。

And our levels right now are very healthy with that customer, very healthy.

我們現在對那個客戶的水平非常健康，非常健康。

Last quarter, you discussed how you were making inroads to a customer in the rental market for industrial tools and were working on tweaking some products to better serve this customer and market. Can you expand a little on your progress this past quarter and prospects for the rest of the year with these products and this customer?

上個季度，您討論瞭如何在工業工具租賃市場上打入客戶，並致力於調整一些產品以更好地服務於該客戶和市場。您能否詳細介紹一下上個季度的進展以及今年剩餘時間對這些產品和該客戶的展望？

That continues. There really isn't much of an update there. It's a longer-term program, and we expect to be working on this for the next few quarters. There's not really much of an update.

這樣的情況還在繼續。確實沒有太多更新。這是一個長期計劃，我們預計將在接下來的幾個季度內致力於此。確實沒有太多更新。

Okay. In the OEM engineered solutions segment or subsegment, are there any other particular areas, industries, products that have grown worthy of any callout and elaboration?

好的。在 OEM 工程解決方案細分市場或子細分市場中，是否還有其他特定領域、行業、產品的發展值得關注和闡述？

No, not at this time.

不，現在不行。

Okay. On the last call, you mentioned Jackson Gear had a lot going on in the international mining arena. Did that subsegment continue with its growth, and were there any other types of customers worthy of a callout as to momentum?

好的。在上次通話中，您提到 Jackson Gear 在國際採礦領域發生了很多事情。該細分市場是否繼續增長，是否還有其他類型的客戶值得關注？

Yeah. We're still doing very well with international mining. And again, just to remind everyone, it's not mining for coal necessarily. It's mining for just about everything you can mine. And it's spread across a number of international locations. It's doing very well. That customer is doing very well with us.

是的。我們在國際採礦業方面仍然做得很好。再次提醒大家，這不一定是煤炭開採。它正在開採幾乎所有你能開采的東西。它分佈在許多國際地點。它做得很好。那個客戶與我們合作得很好。

Okay.

好的。

And as is our backlog in that business -- I wouldn't call to Jackson. We call it the PTG business. Our backlog is very, very healthy there as well.

正如我們在該業務中的積壓工作一樣——我不會打電話給傑克遜。我們稱之為 PTG 業務。我們的積壓情況也非常非常健康。

Right. Now you mentioned backlog on aerospace and backlog with PTG. What do you define kind of as backlog? These are POs that you have. These are orders with expected deliveries within the next 12 months, the next six months. How do you define backlog when it comes to aerospace, and how do you define backlog as it comes to PTG?

正確的。現在您提到了航空航天領域的積壓訂單和 PTG 的積壓訂單。您如何定義積壓？這些是您擁有的採購訂單。這些是預計在未來 12 個月、未來 6 個月內交付的訂單。在航空航天領域，您如何定義待辦事項？在 PTG 方面，您如何定義待辦事項？

It's both. It's both. I'll let Joe elaborate, but we monitor bookings on a daily basis. But Joe, you can maybe --

兩者都是。兩者都是。我會讓喬詳細說明，但我們每天都會監控預訂情況。但是喬，你也許可以——

Backlog is an order that hasn't shipped yet. I don't know how -- I mean, I'm not quite sure how to define it any other way.

Backlog 是指尚未發貨的訂單。我不知道如何——我的意思是，我不太確定如何以其他方式定義它。

Okay.

好的。

It's often ordered.

經常被訂購。

And so, it's quantified. Any chance that you guys might consider providing those kind of backlog numbers in present and future quarters?

因此，它是量化的。你們是否有可能考慮提供當前和未來幾個季度的積壓訂單數量？

We are reluctant to do that. That number moves around a lot. I think we're better off explaining the general outlook for the businesses.

我們不願意這樣做。這個數字變動很大。我認為我們最好解釋一下企業的總體前景。

I'm just not comfortable trying to explain what's happening in the backlog. Because backlog is very different in terms of each business unit. Some have a few weeks of backlog. Some have a few days of backlog. Some have three months of backlog.

我只是不願意解釋積壓中發生的事情。因為每個業務部門的待辦事項有很大不同。有些積壓了幾週。有些積壓了幾天。有些積壓了三個月。

And then for me to parse out what's going on across eight different product lines and their -- each of them and their different backlog, normal relationships, would be, frankly -- and I don't think very helpful to investors. I think we're better off explaining the overall business.

然後讓我解析八個不同的產品線以及它們的情況——每個產品線以及它們不同的積壓工作、正常關係，坦率地說——我認為對投資者沒有多大幫助。我認為我們最好解釋一下整體業務。

Because as I said, if you take our largest customer, we could get an eight-month order from them, work it down over four or five months, ship it all in 30 days, wait for the next order, and then I'll get a question about why backlog dropped by $2 million when there's absolutely no issue going on with that customer. Just waiting -- we're working with them on the next order.

因為正如我所說，如果你接受我們最大的客戶，我們可以從他們那裡得到一個八個月的訂單，在四五個月內完成它，在30 天內全部發貨，等待下一個訂單，然後我會詢問為什麼積壓訂單減少了 200 萬美元，而該客戶絕對沒有出現任何問題。只是等待 - 我們正在與他們合作處理下一個訂單。

So I don't think it's going to be very helpful to investors. And that's one of the reasons we've never disclosed it.

所以我認為這對投資者來說不會有太大幫助。這就是我們從未披露過的原因之一。

Okay. To what extent has prior under-absorption of manufacturing overhead costs that you've been referring to in prior press release been addressed in Q2? And what are the remaining issues, if any, to be resolved, and can you expand on the steps and timing to address these issues?

好的。您在之前的新聞稿中提到的製造管理費用吸收不足的問題在第二季度得到了多大程度的解決？如果有的話，還有哪些問題需要解決？您能否詳細說明解決這些問題的步驟和時間安排？

Yeah. As we've said in prior calls, we've -- over the last six months, seven months, we brought in actually three to four fairly expensive pieces of equipment that'll help automate things. We are, frankly, a little behind schedule on where I'd like to be with those machines being up and running.

是的。正如我們在之前的電話中所說，在過去的六個月、七個月裡，我們實際上引進了三到四台相當昂貴的設備，這些設備將有助於實現自動化。坦率地說，我們在這些機器的啟動和運行方面比我希望的進度有點落後。

They're all up and running, but we're well behind where I'd like to be in terms of their benefit to the operations overall. And I don't really think we're going to see much benefit for those machines until even the fourth quarter. And I would estimate that -- I'm just thinking a number of four machines -- probably 20% of the benefit in this year. But most of -- next year, we'll see almost full benefit for the whole year.

它們都已啟動並運行，但就它們對整體運營的效益而言，我們遠遠落後於我希望的水平。我真的認為，即使到第四季度，我們也不會看到這些機器帶來太多好處。我估計——我只是想到了四台機器——可能佔今年收益的 20%。但明年的大部分時間，我們將看到全年幾乎全部受益。

So lots going on. We're excited about the run times that we're seeing, but there's a lot of tweaking. There's a lot of coding. There's a lot of additional tooling that has to go in place.

發生了很多事情。我們對所看到的運行時間感到興奮，但還有很多調整。有很多編碼。還有很多額外的工具需要到位。

It's just a slow process, and we're taking our time. We were hopeful that we'd be a little farther along than we are, and it just is what it is. But we still are highly confident in the ability of those new tools to drop some money to the bottom line.

這只是一個緩慢的過程，我們正在慢慢來。我們希望我們能比現在走得更遠一點，事實也正是如此。但我們仍然對這些新工具減少利潤的能力充滿信心。

Yeah. It's going to be very significantly and very profitable and very good for us efficiency-wise and all that. And as Joe said, it'll be phasing in over the fourth quarter. And next year, we're expecting very good things.

是的。這將是非常重要、非常有利可圖的，並且對我們的效率方面非常有好處。正如喬所說，它將在第四季度逐步實施。明年，我們期待美好的事情發生。

And having said that, we're not having any issue getting product out the door in general.

話雖如此，我們在推出產品時總體上沒有任何問題。

You're just manually loading things instead of the robots doing it.

您只需手動裝載東西，而不是由機器人來完成。

Well, yeah. I mean, we were achieving these levels of shipments just about a year ago. But these are going to help a lot.

嗯，是的。我的意思是，大約一年前我們才達到了這樣的出貨量水平。但這些都會有很大幫助。

Now, when you talk about this, is this -- I asked the question within the PTG. But you're talking about automation equipment that is a PTG or Hy-Tech across the board or also Jiffy and Florida Pneumatic.

現在，當你談論這個問題時，我在 PTG 中提出了這個問題。但您談論的是自動化設備，包括 PTG 或 Hy-Tech 以及 Jiffy 和 Florida Pneumatic。

Yes. Jiffy and Hy-Tech -- it's Jiffy -- no, Florida Pneumatic doesn't manufacture domestically, really. It's Jiffy. It's Jiffy, and both our facilities at Hy-Tech.

是的。 Jiffy 和 Hy-Tech——是 Jiffy——不，Florida Pneumatic 確實不在國內生產。是吉菲。這是 Jiffy，也是我們在 Hy-Tech 的設施。

Okay. So it's all three areas where things are a little behind schedule. But the machines are in, but you're just getting things tweaked.

好的。所以這三個領域的事情都有點落後於計劃。但機器已經到位，但你只是在進行一些調整。

Yeah.

是的。

We spent roughly $2.5 million in CapEx this year on these machines, and very, very exciting and promising for us.

今年我們在這些機器上花費了大約 250 萬美元的資本支出，這對我們來說非常非常令人興奮和充滿希望。

And your prospects --

還有你的前景——

(multiple speakers)

（多個發言者）

Yeah. Is your -- and your prospective CapEx spend from this point going for the rest of the year is what kind of level and for what other equipment?

是的。從現在開始，您的預期資本支出在今年剩餘時間裡會達到什麼樣的水平以及用於哪些其他設備？

Modest. I think -- I don't have it in front of me, but I think the full year is something like $2.9 million or $2.8 million to $3 million. So maybe there's -- well, we're already in August. So I'd say in the Q -- in terms of our reporting, there's probably $1 million left to go. But we probably already spent a good chunk of that already.

謙虛的。我認為——我面前沒有，但我認為全年的收入約為 290 萬美元或 280 萬至 300 萬美元。所以也許——好吧，我們已經是八月了。所以我會在 Q 中說——就我們的報告而言，可能還剩下 100 萬美元。但我們可能已經花了其中很大一部分了。

By the end of the third quarter, it'll be -- the money will be spent for the --

到第三季度末，這筆錢將用於——

So it's about $1 million left as of the end of June -- in the June quarter?

那麼截至 6 月底，第 6 季度還剩下大約 100 萬美元？

Yes, right.

是的，沒錯。

Okay.

好的。

Andrew, I (multiple speakers) --

安德魯，我（多名發言者）——

All right, and --

好吧，還有——

And it's three minutes left, so --

還剩三分鐘，所以——

Thank you.

謝謝。

Okay.

好的。

Is it yours and the Board's view to focus P&F more towards making new acquisitions or to permanently lower the company's average debt levels or expanding the return of capital to shareholders with highly selective buybacks or increased dividends, as the company appears to have returned to sustained profitability and even higher cash flow generation? What's your thoughts here, Richard, and the Board's?

您和董事會的觀點是，隨著公司似乎已經恢復了持續盈利能力，P&F 應該更多地關注進行新的收購，還是永久性地降低公司的平均債務水平，或者通過高度選擇性的回購或增加股息來擴大對股東的資本回報甚至更高的現金流產生？理查德，您和董事會有何想法？

Yeah. The Board and I, myself, are very, very focused on acquisitions. There are a few that I know of that are potential, that'll be good for us in the same exact fields that we're in, which would add to our business. So if they make sense for us to move in and we can make the deals with the people, the other companies, we fully intend to do that.

是的。董事會和我本人都非常非常關注收購。據我所知，有一些是有潛力的，這對我們所在的領域有好處，這會增加我們的業務。因此，如果他們對我們來說有意義，並且我們可以與員工、其他公司達成交易，我們完全打算這樣做。

It's nothing imminent. But certainly, I would say within the next nine months to a year, I would expect that we will have at least one acquisition. I would hope.

這並不是迫在眉睫的事情。但當然，我想說在接下來的九個月到一年內，我預計我們將至少進行一次收購。我希望。

And is this --

這是——

(multiple speakers)

（多個發言者）

And is this on the -- yeah, your debt level is very low now.

這是——是的，你的債務水平現在非常低。

Very low. And we have a big runway of a line with the bank.

非常低。我們有一條與銀行連線的大跑道。

Right.

正確的。

Right now (multiple speakers) --

現在（多位發言者）——

Are these acquisitions in the focus of PTG, other areas of Hy-Tech, or inside of the Florida Pneumatic and/or aerospace operations?

這些收購的重點是 PTG、Hy-Tech 的其他領域，還是佛羅里達氣動和/或航空航天業務的內部？

Well, I can't be specific about it. But I can tell you it could be affecting all of our companies in a good way.

嗯，我不能具體說明這一點。但我可以告訴你，這可能會對我們所有的公司產生良好的影響。

Okay.

好的。

This is kind of the way I would describe it. We're looking at acquisitions. We always are. This isn't any new information.

這就是我描述它的方式。我們正在考慮收購。我們一直都是。這不是什麼新信息。

But I think you rightly point out debt levels are getting to the point and sustainability of profits and cash flow are getting to the point that we certainly will be in a position to pull the trigger on something at some point next year, assuming we're comfortable with how we're doing with our factories.

但我認為你正確地指出，債務水平已經達到了這樣的程度，利潤和現金流的可持續性也已經達到了這樣的程度，假設我們在明年的某個時候，我們肯定能夠啟動某些事情。對我們工廠的運作方式感到滿意。

And do you have any one last question before you -- if you don't mind?

如果您不介意的話，您還有最後一個問題嗎？

Yeah, no. And the one last question is it's nice that you're thinking about the acquisitions. You're focusing your discussion on this. Your debt levels are low. We can use debt to do it.

是的，不。最後一個問題是，很高興您正在考慮收購。你們的討論重點就在於此。你的債務水平很低。我們可以利用債務來做到這一點。

The one thing that we can't really do is use shares to do it in light of the fact that our shares are so deeply undervalued relative to book value and even tangible book value, which is north of $10 a share. In light of these operating and sustainable progress you made, is there any thought of perhaps doing some non-deal roadshows, talking to the investment community a little more outside of these quarterly calls to raise the visibility of the company, its cash flows, and its prospects so that your acquisition opportunities could be done with the lowest cost of capital, which might at some point perhaps not necessarily be high-interest debt?

我們真正不能做的一件事是使用股票來做到這一點，因為我們的股票相對於賬面價值甚至有形賬面價值（每股 10 美元以上）被嚴重低估。鑑於您取得的這些運營和可持續進展，是否有想過進行一些非交易路演，在這些季度電話會議之外與投資界進行更多的交談，以提高公司的知名度、現金流和其前景，以便您可以以最低的資本成本完成收購機會，這在某些時候可能不一定是高息債務？

We've said this many times. As we talk about this at each Board meeting, we certainly intend to do that and -- to be seen. But it's not -- it doesn't go on lost years, what you're saying. So thank you for that.

這一點我們已經說過很多次了。當我們在每次董事會會議上談論這一點時，我們當然打算這樣做，並且——讓人們看到。但事實並非如此——正如你所說，它不會繼續逝去的歲月。非常感謝你的幫忙。

Okay. All right. Thank you.

好的。好的。謝謝。

All right. Thank you, Andrew.

好的。謝謝你，安德魯。

(Operator Instructions) Timothy Stabosz, private investor.

（操作員說明）Timothy Stabosz，私人投資者。

Good morning, gentlemen. Thank you for taking my call.

早上好，先生們。感謝您接聽我的電話。

Good morning, Tim.

早上好，蒂姆。

Richard, it's exciting to see you optimistic, enthused, and even, dare I say, chipper. I have one question in mind only, and that is -- I'll never drill down like Andrew. But I'm going to drill down in Florida Pneumatic on the $1.9 million decline, probably a Joe question, but whichever -- in the retail segment.

理查德，很高興看到你樂觀、熱情，甚至我敢說，精神抖擻。我腦子裡只有一個問題，那就是——我永遠不會像安德魯那樣深入研究。但我將深入研究佛羅里達氣動公司 190 萬美元的下降，這可能是喬的問題，但無論如何 - 在零售領域。

Can you give some sense of what part of that one-third, two-thirds is due to the lack of the pipeline fill that you saw in the year-ago quarter versus the choice of certain customers, Home Depot -- I don't know -- to reduce SKUs?

您能否說明一下，這三分之一、三分之二的哪一部分是由於您在去年同期看到的管道填充不足以及某些客戶的選擇造成的，家得寶 - 我不知道知道——減少SKU嗎？

Yeah. I don't know if you're asking me this question. I'll let Joe fill it in. But it's, essentially, the SKU drop and, of course, the economy, which is slowing down. But Joe, you can add to it.

是的。我不知道你是否在問我這個問題。我會讓 Joe 來填寫。但本質上是 SKU 下降，當然還有經濟放緩。但是喬，你可以添加它。

So I would say there was a -- Q2 of 2022 was a pretty big quarter. We had a rollout. We refreshed the line that -- as you know, we refresh the line every four or five years. So we refreshed the line. It was a running change, so we certainly had a bump-up. I mean, it was a seven-figure number, for sure. I don't know exactly, but it was seven figures.

所以我想說，2022 年第二季度是一個相當大的季度。我們進行了首次展示。我們更新了產品線——如您所知，我們每四五年更新一次產品線。所以我們刷新了線路。這是一個持續的變化，所以我們當然有一個提升。我的意思是，這肯定是一個七位數的數字。我不太清楚，但那是七位數。

So yeah, I think there's definitely some of that in there. But it's lost a little bit -- there's three things that happened. There's the rollout. We dropped six SKUs, and then, in addition to that, prices were raised. And I think, frankly, there were probably a few less units sold. Our margins got better, but a few less units sold.

所以是的，我認為裡面肯定有一些內容。但它有點丟失了——發生了三件事。這是推出。我們放棄了 6 個 SKU，然後除此之外還提高了價格。坦白說，我認為銷量可能會少一些。我們的利潤率有所提高，但銷量卻減少了一些。

So it's a little hard to parse which one of those things exactly drove the total change. They're all in there. But not to be lost, there was a seven-figure rollout.

因此，要分析其中哪一件事到底推動了總體變化有點困難。他們都在裡面。但不要迷失，我們推出了七位數的產品。

Okay. Well, it sounds like that the bulk of it or a majority of it, then, is just the lumpiness of the rollout and not a permanently lower level of sales due to reduced stocking keeping units. So that's real. Also, that's true. That's material. But it sounds like it may -- that the lumpiness factor may be the -- not the outsized amount, but maybe a majority, huh?

好的。好吧，聽起來其中的大部分或大部分只是推出的不穩定，而不是由於庫存單位減少而導致銷售水平永久較低。所以這是真的。而且，這也是事實。那是物質。但聽起來可能——塊狀因素可能是——不是特大的數量，但也許是大多數，是吧？

Yeah. I mean, the level of revenue for the quarter that we have in retail is a pretty sustainable number going forward without trying to get into projections. But we think that's a reasonable figure.

是的。我的意思是，我們零售業本季度的收入水平是一個相當可持續的數字，無需進行預測。但我們認為這是一個合理的數字。

Yeah. Well, I'll just -- Tim, I'll just add to what Joe said. In the end of last year, Home Depot's sales were going down a lot. They were tightening inventory and all that kind of stuff.

是的。好吧，我會——蒂姆，我會補充一下喬所說的內容。去年年底，家得寶的銷售額大幅下降。他們正在收緊庫存以及諸如此類的事情。

And now, as Joe's saying, in the last three months or maybe more, their levels have been very predictable. Their orders have been very predictable. And whatever their business is, it's ongoing at this point, and it's stable. I'll say it that way.

現在，正如喬所說，在過去三個月或更長時間裡，他們的水平非常可預測。他們的訂單非常可預測。無論他們的業務是什麼，目前都在持續進行，而且很穩定。我就這樣說吧。

Okay, okay, okay. I know this may shock you, but I don't have anything more. So thank you, and have a good day.

好吧，好吧，好吧。我知道這可能會讓你感到震驚，但我沒有更多的了。謝謝你，祝你有美好的一天。

Thank you, Tim.

謝謝你，蒂姆。

(Operator Instructions) We do not appear to have any further questions coming in. Mr. Horowitz, I'd like to turn the call back over to you for any additional or closing remarks. Thank you.

（操作員指示）我們似乎沒有收到任何進一步的問題。Horowitz 先生，我想將電話轉回給您，請您發表任何補充或結束語。謝謝。

Okay. Thank you all for your time today. We wish you a good rest of the summer. And we will look forward to speaking to you with our third-quarter numbers closer to the end of the year in November.

好的。感謝大家今天抽出時間。我們祝您暑假愉快。我們期待在 11 月份臨近年底時向您提供第三季度的數據。

Thank you all for your time today.

感謝大家今天抽出時間。

Ladies and gentlemen, that will conclude today's presentation. Thank you for your attendance. You may disconnect.

女士們、先生們，今天的演講到此結束。感謝您的出席。您可以斷開連接。