Douglas Dynamics Inc (PLOW) 2024 Q1 法說會逐字稿

Good day and welcome to the Douglas Dynamics first quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the call over to Nathan Elwell, VP of IR. Please go ahead.

美好的一天，歡迎參加 Douglas Dynamics 2024 年第一季財報電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將電話轉給 IR 副總裁 Nathan Elwell。請繼續。

Thank you. Welcome, everyone, and thank you for joining us on today's call. Before we begin, I would like to remind you that some of the comments that will be made during this conference call, including answers to your questions, will constitute forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters that we have described in yesterday's press release and in our filings with the SEC.

謝謝。歡迎大家，感謝您參加今天的電話會議。在我們開始之前，我想提醒您，本次電話會議期間發表的一些評論，包括對您問題的回答，將構成前瞻性陳述。這些前瞻性陳述存在可能導致實際結果有重大差異的風險。這些風險包括我們在昨天的新聞稿和向美國證券交易委員會提交的文件中所述的事項等。

Joining me on the call today is Bob McCormick, President and CEO, and Sarah Lauber, Executive Vice President and CFO. Rob will provide an overview of our performance, followed by Sarah reviewing our financial results and guidance. After that, we'll open up the call for questions. With that, I'll hand the call over to Bob. Please go ahead.

今天與我一起參加電話會議的是總裁兼執行長鮑勃·麥考密克 (Bob McCormick) 和執行副總裁兼財務長莎拉·勞伯 (Sarah Lauber)。羅布（Rob）將概述我們的業績，隨後莎拉（Sarah）審查我們的財務業績和指導。之後，我們將開放提問。這樣，我就把電話轉給鮑伯。請繼續。

Thanks, Nathan. Our results for the first quarter 2024 reflect a continuation of trends we saw last year. Return solutions continues to deliver improved results, while work truck attachments has been hindered by unprecedented weather conditions. Having said that, we are pleased to report improved performance across the board this quarter compared to last year. The performance of our solutions segment was again, the highlight. This is the seventh consecutive quarter of improved performance versus the prior year same quarter. I'd like to thank the solutions teams for their continued hard work.

謝謝，內森。我們 2024 年第一季的業績反映了去年趨勢的延續。返回解決方案繼續提供改進的結果，而工作卡車附件卻受到前所未有的天氣條件的阻礙。話雖如此，我們很高興地報告本季的業績與去年相比全面改善。我們的解決方案部門的表現再次成為亮點。這是連續第七個季度業績較去年同期有所改善。我要感謝解決方案團隊的持續辛勤工作。

With chassis supply was at its worst, they stayed focused on what they could control and use DDMS to get better every day, knowing that when chassis supply improved, it exits stronger and more profitable, great job. Now let me run through our performance in each segment. Despite experiencing the second winter in a row with significantly below average snowfall all of our core markets, our work truck attachments team still managed to deliver improved results compared to last year.

在底盤供應最糟糕的情況下，他們始終專注於自己可以控制的事情，並使用DDMS 每天都變得更好，因為他們知道，當底盤供應改善時，它會變得更強大、更有利可圖，這是一項偉大的工作。現在讓我回顧一下我們在每個環節的表現。儘管我們所有核心市場連續第二個冬季降雪量顯著低於平均水平，但我們的工作卡車屬具團隊仍然設法提供比去年更好的結果。

Snowfall in the first quarter this year was better than the fourth quarter of 2023. And on the East Coast conditions were better than the previous winter. We were glad to break the record 700-plus day gap between measurable snowfalls, the important cities along the I-95 corridor. However, after a positive start to snowfall in the first quarter, with above average snowfall in many markets during January and the first nor'easter in two years in early February, there was a lack of snowfall through the rest of February and March. So the season ended as poorly as it began.

今年第一季的降雪量比 2023 年第四季好。我們很高興打破了 95 號州際公路沿線重要城市可測量降雪之間 700 多天差距的記錄。然而，在第一季開始出現積極的降雪之後，1月份許多市場的降雪量高於平均水平，並且2月初出現了兩年來的第一個東北雪，但2月份剩餘時間和3月份的降雪量卻很少。所以這個賽季的結束和開始時一樣糟糕。

I should reiterate, we've never seen back-to-back seasons of this magnitude over the 75-plus years we've been in business, and we are in unchartered territory to some extent. While we already expected to finish this season with below average snowfall, the final totals were at the low end of our expectations and 40% below the 10-year average. Again, weather is the reason we are bringing down the top end of our guidance range, and Sarah will speak to that more later.

我應該重申，在我們經營的 75 多年裡，我們從未見過如此規模的連續季節，而且在某種程度上，我們正​​處於未知領域。雖然我們預計本季的降雪量將低於平均水平，但最終降雪量仍處於我們預期的低端，比 10 年平均值低 40%。同樣，天氣是我們降低指導範圍上限的原因，莎拉稍後會詳細討論這一點。

Given the deterioration in winter weather late in the season, we have expanded the 2024 cost savings program the with total annualized savings growing to $10 million-plus with $8 million to $9 million coming in this year. Our teams are committed to making the right decisions that will allow us to manage through this situation without compromising our ability to operate and grow. One bright spot during the quarter was the NTEA Work Truck Show in Indianapolis.

鑑於冬季天氣在季節末期惡化，我們擴大了 2024 年成本節省計劃，年化節省總額增至 1000 萬美元以上，其中今年節省了 800 萬至 900 萬美元。我們的團隊致力於做出正確的決策，使我們能夠在不影響營運和發展能力的情況下應對這種情況。本季度的一個亮點是印第安納波利斯舉辦的 NTEA 工作卡車展。

Our teams launched several innovative new products that were well received by dealers, including the straight-blade plow, a poly hopper spreader, and a hydraulic wind pusher plow, which is sitting in every one of our major product categories. It's also worth remembering that we expect the emerging industry demand dynamics to continue. First, customers are more demanding and willing to pay more for faster snow and ice removal. Second, winter weather continues to expand further south. And third, the landscapers need more equipment to get their jobs up faster and more efficiently and often with the same number of employees, which means they're expanding their fleets to include non-truck equipment. These positive trends are creating opportunity that just didn't exist in our industry five years ago.

我們的團隊推出了幾款受到經銷商好評的創新新產品，包括直刃犁、聚乙烯料斗撒肥機和液壓風推犁，這些產品屬於我們的每個主要產品類別。另外值得記住的是，我們預計新興產業的需求動態將持續下去。首先，客戶的要求更高，願意為更快的除雪和冰支付更多的費用。其次，冬季天氣繼續向南擴展。第三，園林設計師需要更多的設備來更快、更有效率地完成工作，並且通常需要相同數量的員工，這意味著他們正在擴大車隊以包括非卡車設備。這些積極的趨勢正在創造五年前我們行業還不存在的機會。

Today, our broader product offering covers virtually every aspect of commercial snow and ice control with the leading brands and new products and opportunities on the horizon. Listen, there is no doubt it's been difficult recently for the attachments team, but as always, and just like our solutions team, with our focus on baseline profit improvements, new product development, and DDMS continuous improvement initiatives, we will exit stronger from this environment. Knowing our team will be ready to drive profitable growth again when more normal weather conditions return. The future possibilities for the attachments segment remain incredibly exciting.

如今，我們的產品範圍更廣泛，幾乎涵蓋了商業冰雪控制的各個方面，其中包括領先品牌以及即將出現的新產品和機會。聽著，毫無疑問，附件團隊最近遇到了困難，但與往常一樣，就像我們的解決方案團隊一樣，我們專注於基線利潤改進、新產品開發和DDMS 持續改進計劃，我們將從中更堅強地退出環境。我們知道，當天氣條件恢復正常時，我們的團隊將準備好再次推動獲利成長。附件領域的未來前景仍然令人難以置信。

Now let's talk about work truck solutions, where the recent results and outlook are very encouraging. After completing a strong finish to 2023, the solutions team continued to build upon that momentum, delivering another strong quarter to the start 2024. Our Dejana and Henderson teams are increasing the velocity of trucks through the upfit centers, which is really key to us improving our baseline profitability. There are several positive trends we are seeing, which collectively help driving our improved results.

現在我們來談談工作卡車解決方案，最近的結果和前景非常令人鼓舞。在 2023 年取得強勁成績後，解決方案團隊繼續發揚這一勢頭，在 2024 年年初再創強勁季度業績。能力。我們看到了一些正面的趨勢，這些趨勢共同有助於推動我們改善業績。

Speaking about the Dejana, it's clear that our OEM partners are more focused on fleet and dealer business today. Our teams are adjusting our focus and business mix to match the industry trends, driving improvements in the fleet business where chassis are easier to come back today. So both our fleet truck and cargo truck business are growing, which we expect to be a trend that lasts throughout 2024. At Henderson, I'm pleased to report that the low margin contracts we've been battling through in recent years are virtually complete and are no longer a drag on our profitability.

談到 Dejana，很明顯我們的 OEM 合作夥伴如今更加關注車隊和經銷商業務。我們的團隊正在調整我們的重點和業務組合，以適應行業趨勢，推動車隊業務的改進，如今底盤更容易恢復。因此，我們的車隊卡車和貨運卡車業務都在成長，我們預計這一趨勢將持續到 2024 年。並且不再拖累我們的獲利能力。

Overall chassis supply is stable, it's starting to show signs of improvement in certain areas. Additionally, the dependable parts program we launched last year has been well received by our customer base and continues to gain traction. We continue our focus on internal profit drivers as we do every year, including product redesigns, sourcing improvements, and DDMS initiatives. As you would expect, the improved results we are starting to eat into our backlog, but I'm pleased to see new order trends also remain positive.

整體底盤供應穩定，部分地區開始出現好轉跡象。此外，我們去年推出的可靠零件計劃受到了客戶群的好評，並繼續受到關注。我們一如既往地繼續關注內部利潤驅動因素，包括產品重新設計、採購改進和 DDMS 計劃。正如您所期望的那樣，業績的改善已經開始消耗我們的積壓訂單，但我很高興看到新訂單趨勢也保持積極。

We still have a great backlog, significantly higher than historical averages, and if chassis supply improvements continue during the year, we are poised to move increased velocity to our other businesses. Our recent performance bodes well for the coming year, especially as overall demand outlook and backlog remain positive. While the progress may not always be linear, things are clearly moving in the right direction. In short, it's great to see the solutions group going from strength to strength.

我們仍然有大量積壓訂單，明顯高於歷史平均水平，如果底盤供應在今年繼續改善，我們準備將加快速度轉移到其他業務。我們最近的表現預示著來年的良好表現，特別是在整體需求前景和積壓訂單仍然樂觀的情況下。雖然進展可能並不總是線性的，但事情顯然正在朝著正確的方向發展。簡而言之，很高興看到解決方案團隊不斷壯大。

In closing, we continue to navigate through external headwinds in a logical and effective manner. I'm so proud of our teams work together to find solutions to challenges while making improvements to the factors that are within our control. Our culture of continuous improvement will not only see us through these tough times, but ensure we emerge in a better position, stronger and smarter than before. I think the combination of our team's creativity, collaboration, and CI mindset is a recipe for long-term success and will be a key factor in driving progress towards our long-term targets.

最後，我們繼續以合乎邏輯且有效的方式來應對外部阻力。我為我們的團隊共同努力尋找挑戰的解決方案，同時改善我們控制範圍內的因素而感到自豪。我們持續改進的文化不僅能讓我們度過這些艱難時期，還能確保我們處於比以前更好、更強大、更聰明的地位。我認為我們團隊的創造力、協作和 CI 思維的結合是長期成功的秘訣，並將成為推動我們實現長期目標的關鍵因素。

With that, I'd like to pass the call to Sarah to walk through our financials. Sarah?

說到這裡，我想把電話轉給莎拉，讓她了解我們的財務狀況。莎拉？

Thanks, Bob. I'm pleased to report that when compared to the first quarter of last year are being called interest across all metrics. Net sales increased 16% to $95.7 million and growth profit increased 67.3% to $18.9 million. SG&A expenses decreased 4.3% to $21.5 million compared to first order of 2023. The improvement was driven by higher volume and price realization and solutions and higher persons accessory volumes at attachments.

謝謝，鮑伯。我很高興地報告，與去年第一季相比，所有指標都被稱為興趣。淨銷售額成長 16%，達到 9,570 萬美元，成長利潤成長 67.3%，達到 1,890 萬美元。與 2023 年第一筆訂單相比，SG&A 費用下降 4.3%，至 2,150 萬美元。

In addition, extended payment lower based on the successful implementation of the 2024 cost savings program. This partially offset by related severance and impairment costs. In conjunction with the implementation of the 2024 cost savings program, we recorded restructuring and impairment charges of $2.5 million -- $2.1 million, which were in line with our expectations. Interest expense by $3.5 million for the quarter compared to $2.9 million incurred in the same period last year. We reported a GAAP net loss for the quarter, which is typical given the seasonality of our business.

此外，基於成功實施 2024 年成本節約計劃，延長付款時間並降低。這部分被相關遣散費和減損成本所抵銷。結合 2024 年成本節約計畫的實施，我們記錄了 250 萬至 210 萬美元的重組和減損費用，這符合我們的預期。本季利息支出增加 350 萬美元，而去年同期利息支出為 290 萬美元。我們報告了本季度的 GAAP 淨虧損，考慮到我們業務的季節性，這是典型的。

The net loss for the first quarter 2024 was $8.4 million compared to net loss of $13.1 million last year, an improvement of $4.7 million. On an EPS basis, this translates to negative $0.37, a significant improvement compared to negative $0.58 in 2023. On an adjusted basis, we generated net loss of $6.5 million or negative $0.29 per diluted share compared to an adjusted net loss of $12.5 million or negative $0.55 per diluted share. Similarly, we generated a consolidated adjusted EBITDA up $1.5 million compared to negative $7.4 million in the corresponding period the prior year.

2024 年第一季的淨虧損為 840 萬美元，比去年的淨虧損 1,310 萬美元減少了 470 萬美元。以每股收益計算，這相當於負0.37 美元，與2023 年的負0.58 美元相比，有了顯著改善。後的負0.29 美元，而調整後的淨虧損為1,250 萬美元，即負0.29 美元。同樣，我們的綜合調整後 EBITDA 增加了 150 萬美元，而去年同期為負 740 萬美元。

Let's review results for the two segments. work truck attachments results improved across the board compared to the prior year despite the sale increased from $23.9 million versus $23.8 million and adjusted EBITDA increased $5.7 million to negative $4.5 million. The improvements are driven by increased sales of parts and accessories, plus the implementation of the 2024 cost savings program. The above average snowfall in January led to record parts and accessory sales for that month.

讓我們回顧一下這兩個部分的結果。儘管銷售額從 2,390 萬美元增至 2,380 萬美元，且調整後的 EBITDA 增加 570 萬美元至負 450 萬美元，但與前一年相比，工作卡車屬具業績全面改善。這些改進是由零件和配件銷售量的增加以及 2024 年成本節約計畫的實施所推動的。 1 月降雪量高於平均水平，導致當月零件和配件銷量創歷史新高。

Now I'm pleased to report that our results at work truck solutions continued to improve. Net sales increased approximately 13% to $71.8 million compared to the same period last year based on higher volume, improved chassis availability and increased price realization. This led to adjusted EBITDA margin increasing to 8.4%, which is the highest point in any first quarter since 2019. While some component supply issues linger, the overall situation to continue to stabilize and slowly improve.

現在我很高興地向大家報告，我們的工作卡車解決方案的成果持續改善。由於銷量增加、底盤可用性提高以及價格實現提高，淨銷售額與去年同期相比增長了約 13%，達到 7,180 萬美元。這導致調整後的 EBITDA 利潤率增至 8.4%，這是自 2019 年以來第一季的最高點。

With demand and backlog remaining positive, we're pleased to see the improvements we've worked hard for start to show up in our financials. While we still have a ways to go to reach our goal, things are moving in the right direction at solutions. With segment results covered, I'll turn to the balance sheet liquidity figure. Net cash used in operating activities improved by 62% to $21.6 million for the quarter, and free cash flow for first quarter 2024 was negative $22.9 million, an increase of $36.8 million compared to negative $59.7 million in the same quarter last year.

由於需求和積壓仍保持積極狀態，我們很高興看到我們努力爭取的改善開始體現在我們的財務狀況中。雖然我們距離目標還有很長的路要走，但解決方案正在朝著正確的方向發展。介紹完分部績效後，我將轉向資產負債表流動性資料。本季經營活動使用的現金淨額成長 62%，達到 2,160 萬美元，2024 年第一季自由現金流為負 2,290 萬美元，比去年同期的負 5,970 萬美元增加了 3,680 萬美元。

The improvement was primarily due to favorable changes in working capital, including a decrease in cash used in accounts payable and inventory and improved operating results. Inventory at the end of the quarter of $174.8 million was 5.3% lower than the $184.6 million at the end of first quarter 2023 as we held less finished goods at attachments this year compared to last. Inventory typically grows in the first quarter as attachments builds inventory in advance of pre-season activity, and this year, we are keenly focused on adjusting our manufacturing as needed to flex inventory.

這項改善主要是由於營運資本的有利變化，包括應付帳款和庫存所用現金的減少以及經營績效的改善。本季末的庫存為 1.748 億美元，比 2023 年第一季末的 1.846 億美元低 5.3%，因為我們今年在附件中持有的成品數量比去年少。庫存通常會在第一季成長，因為附件會在季前活動之前建立庫存，而今年，我們將專注於根據需要調整我們的製造以靈活庫存。

Accounts receivable at the end of the quarter were $58.6 million compared to $48.2 million at the end of the first quarter 2023. The increase compared to last year is a holdover from the elevated at the end of 2023 and the current number is now much lower than the $83.8 million at year end. Capital expenditures in the first quarter were $1.3 million as expected, which is about half of the $2.7 million incurred in the same quarter last year, as we continue to curtail our spending as part of our 2024 cost-saving program. We expect to be on the low end of our targeted range of CapEx of 2% to 3% of revenue, and we will be prudent with the timing of the investments.

本季末的應收帳款為5,860 萬美元，而2023 年第一季末的應收帳款為4,820 萬美元。於年底為 8380 萬美元。第一季的資本支出符合預期，為 130 萬美元，約為去年同期 270 萬美元的一半，因為作為 2024 年成本節約計畫的一部分，我們繼續削減支出。我們預計資本支出目標範圍將處於收入的 2% 至 3% 的低端，並且我們將謹慎對待投資時機。

Turning to capital allocation, our priorities remain consistent. As always, we pay our quarterly cash dividend of $0.295 per share at the end of March. The dividend remains our top priority, and we expect to produce enough free cash flow during the year to cover the costs of the dividend, which is approximately $27 million. The effective tax rate was 16% for the quarter compared to 21.1% for the first quarter last year. Both rates are lower than typical based on discrete tax expense related to exempt tax from stock compensation.

在資本配置方面，我們的優先事項保持一致。像往常一樣，我們在 3 月底支付每股 0.295 美元的季度現金股息。股息仍然是我們的首要任務，我們預計年內將產生足夠的自由現金流來支付股息成本，約 2700 萬美元。本季的有效稅率為 16%，而去年第一季的有效稅率為 21.1%。這兩個稅率均低於基於與股票薪酬免稅相關的離散稅收支出的典型稅率。

At the end of the third quarter, we had a net debt leverage ratio of 3.3 times a couple of points lower than the 3.5 times at the end of 2023. The amended credit facility is providing us greater financial flexibility with a higher leverage ratio covenant at 4 times until June 30, 2024, returning the 3.5 times at September 30, 2024. We are well positioned to manage through this temporary situation.

截至第三季末，我們的淨債務槓桿率為 3.3 倍，比 2023 年底的 3.5 倍低了幾個百分點。 2024 年6 月30 日為止已返還4 次，到2024 年9 月30 日返還3.5 次。

Finally, I'll walk through our updated guidance. First, I'd like to revisit comments I made last quarter. I noted that the largest assumption in our 2024 guidance was at approximately half of the weather driven volume decline in 2023 would be recovered in 2024. As we saw on our earnings release, we are tightening our guidance ranges. Following the poor conclusion of the 2023, '24 snow season, and early indications of the pre-season at attachments, we've lowered our expectation pre-season orders. Although we are early in our pre-season ordering period, we are tracking to our revised lowered forecast.

最後，我將詳細介紹我們更新的指南。首先，我想回顧一下我上季發表的評論。我指出，我們 2024 年指引中最大的假設是 2023 年天氣導致的成交量下降的大約一半將在 2024 年恢復。繼 2023 年 24 雪季的糟糕結局以及附件季前備戰的早期跡象之後，我們降低了季前訂單的預期。儘管我們還處於季前訂購期的早期，但我們正在追蹤修訂後的下調預測。

We now expect 2024 volumes to be similar to 2023. However, we're expecting pre-season being closer to historical shipments of a 55-45 split between Q2 and Q3, while last year the pre-season split was closer to 65-35. This means we expect Q2 volumes to be lower than 2023. We've also found opportunities to expand the 2024 cost saving program, which is now expected to yield annual pretax savings of more than $10 million. We still expect to recognize approximately 75% of the expanded cost savings amount this year, which equates to $8 million to $9 million.

我們現在預計2024 年的銷售量將與2023 年相似。比例更接近65-35 。這意味著我們預計第二季的銷售量將低於 2023 年。我們仍預計今年將節省約 75% 的成本節約金額，相當於 800 萬至 900 萬美元。

The outlook for solutions has not changed for the year and they remain on track to deliver improved top and bottom line full-year results for the 3rd year in a row with stronger improvements in the first half of this year when compared to last year with the back half of the year looking similar to 2023.

今年解決方案的前景沒有改變，他們仍然有望連續第三年實現全年營收和利潤的改善，與去年相比，今年上半年的改善更為強勁。

And finally, it's worth reiterating that dividend remains our top capital allocation priorities. So just to confirm the detail, our updated 2024 financial outlook is as follows; net sales are now expected to be between $600 million and $640 million compared to the previous range of $600 million to $660 million. Adjusted EBITDA is now projected to range from $70 million to $90 million versus the previous range of $70 million to $100 million. And adjusted earnings per share is now expected to be in the range of $1.20 per share to $1.70 per share compared to the previous range of $1.20 to $2.10.

最後，值得重申的是，股利仍然是我們資本配置的首要任務。為了確認細節，我們更新的 2024 年財務展望如下：目前預計淨銷售額將在 6 億至 6.4 億美元之間，而先前的範圍為 6 億至 6.6 億美元。調整後的 EBITDA 目前預計為 7,000 萬美元至 9,000 萬美元，而先前的範圍為 7,000 萬美元至 1 億美元。調整後每股收益目前預計為每股 1.20 美元至 1.70 美元，之前的區間為 1.20 美元至 2.10 美元。

The effective tax rate is expected to be approximately 24% to 25%. It's worth noting our outlook includes underlying assumptions such as relatively stable economic conditions, stable to slightly improving supply of chassis and components, and our core markets will experience average snowfall in the fourth quarter of 2024. However, looking longer term, our segment financial targets remain consistent. For attachments, we believe we can deliver low to mid-single digit sales growth and adjusted EBITDA margins in the mid to high-20.

有效稅率預計約為24%至25%。值得注意的是，我們的展望包括經濟狀況相對穩定、底盤和零件供應穩定至略有改善等基本假設，我們的核心市場將在2024 年第四季度經歷平均降雪量。 ，我們的細分市場財務目標保持一致。對於附件，我們相信我們可以實現低至中個位數的銷售成長和調整後的 EBITDA 利潤率在 20 中至高的水平。

For solutions, we expect to maintain mid to high-single digit sales growth, along with continued improvement towards double-digit EBITDA margin. In 2024, both segments are expected to improve over 2023 due to continued success on baseline profit improvements and greater price realization. These actions keep us on the path towards both segments achieving their margin profile over the longer term.

對於解決方案，我們預計將保持中高個位數的銷售成長，同時繼續提高兩位數的 EBITDA 利潤率。由於基線利潤改善和價格實現更大的持續成功，預計到 2024 年，這兩個細分市場都將比 2023 年有所改善。這些行動使我們能夠在長期內實現這兩個細分市場的利潤狀況。

With that, we'd like to open up the call for questions. Operator?

至此，我們想開始提問。操作員？

(Operator Instructions)

（操作員說明）

Robert Schultz, Baird.

羅伯特舒爾茨，貝爾德。

Hey, guys, good morning.

嘿，夥計們，早安。

Good morning.

早安.

Good morning.

早安.

Hey, so it's now been about two seasons now with lower snowfall totals in attachments, I just wanted to ask, during the past two seasons here, have you noticed any changes in the competitive environment or anything you'd call out from that perspective?

嘿，現在已經過去了大約兩個賽季，附件的降雪總量較低，我只是想問，在過去的兩個賽季中，您是否注意到競爭環境發生了任何變化，或者從這個角度您會提出什麼變化？

No. Terrific question. We do formal market share surveys with our dealer base every year. As you know, we've got 50% to 60% market share, and our market share is holding very solid. Our growth in some of our non-truck segments is adding to the market share in those areas. So we think that the competitive landscape is fairly stable, Bobby, even in this environment.

不，很好的問題。我們每年都會對我們的經銷商群進行正式的市場份額調查。如您所知，我們擁有 50% 到 60% 的市場份額，而且我們的市場份額非常穩固。我們在一些非卡車領域的成長正在增加這些領域的市場份額。所以我們認為，鮑比，即使在這種環境下，競爭格局也相當穩定。

Got it. And then on the solution side, I think last quarter you guys had called out some expected impact from the UAW strike, were you guys able to quantify the impact on Q1 and maybe could have solutions performance even been a little bit better this quarter had you not seen any impact?

知道了。然後在解決方案方面，我認為上個季度你們已經指出了 UAW 罷工的一些預期影響，你們是否能夠量化對第一季度的影響，也許本季度解決方案的性能可能會更好一些沒看出有什麼影響嗎？

Yeah. We actually saw very little impact from the UAW strike. I think from the standpoint of maybe some delayed chassis, those types of things, the teams were really creative, and we have enough backlog to work around some of those interruptions we experienced. It probably was no different than some of the other chassis' delays that we experienced prior to the strike, which was good.

是的。事實上，我們看到 UAW 罷工的影響很小。我認為，從底盤延遲的角度來看，這些類型的事情，團隊真的很有創造力，而且我們有足夠的積壓來解決我們遇到的一些中斷。這可能與我們在罷工之前經歷的其他機箱的延遲沒有什麼不同，這很好。

Yes. I think to Sarah's point, certainly, we saw some chassis delays, now that OEMs were not jumping up and saying, here's exactly the impact. But hats off to the team for moving some other chassis and reprioritizing the mix so that we could still get decent flow through our upfit centers. So we're pleased that the impact in total, was pretty negligible and now appears to be behind us.

是的。我認為就莎拉的觀點而言，我們當然看到了一些底盤延遲，既然原始設備製造商沒有跳出來說，這正是影響。但要向團隊致敬，他們移動了一些其他底盤並重新調整了混合的優先順序，以便我們仍然可以透過我們的改裝中心獲得適當的流量。因此，我們很高興的是，整體影響可以忽略不計，而且現在似乎已經過去了。

Got it. That's good to hear. And then one last one from me. Solutions margins were pretty strong this quarter. Does it change at all your expectations from that segment perspective for the remainder of the year? And I guess how do you kind of see the margin playing out for the rest of the year?

知道了。聽起來還不錯。然後是我的最後一張。本季解決方案的利潤率相當強勁。從該細分市場的角度來看，您對今年剩餘時間的預期是否會改變？我想您對今年剩餘時間的利潤率有何看法？

Yeah. No, it does not change our expectations for the year. So I still expect full year margins for solutions will improve over 2023, making progress towards the double-digit long-term margin profile. But the front half of the year, I expect to be better than the prior year, whereas in the back half of the year, those are a little bit tougher comp base. I expect those margins to be a little more flat to last year.

是的。不，這不會改變我們對今年的預期。因此，我仍然預計解決方案的全年利潤率將比 2023 年有所改善，朝著兩位數的長期利潤率邁進。但今年上半年，我預計會比前一年更好，而下半年，補償基礎會更艱難。我預計這些利潤率將與去年持平。

Got it. Thanks, guys. I'll leave it there.

知道了。多謝你們。我會把它留在那裡。

Mike Shlisky, DA Davidson.

麥克·什利斯基，檢察官戴維森。

(technical difficulty) for Mike, thank you for letting us ask questions. So my first question is, can you give us some thoughts from the NTEA show? What were some customer reaction to some of your new products? And what do you think there -- do you think there are any growth tailwinds this year from those?

（技術難度）Mike，感謝您讓我們提出問題。我的第一個問題是，您能給我們講講 NTEA 展會的一些想法嗎？客戶對你們的一些新產品有何反應？您認為這些因素對今年的成長有什麼推動作用嗎？

Yeah. Absolutely. In my comments I made reference to a number new product launches that we had. Probably the one that sticks out mostly for me is the hydraulic pusher plow product that we launched which rounds out our new pusher plow line. Very, very positive dealer sentiment there. This would turn out to be the most productive, efficient pusher plow in the industry.

是的。絕對地。在我的評論中，我提到了我們發布的一些新產品。對我來說最突出的可能是我們推出的液壓推桿犁產品，它完善了我們新的推桿犁系列。經銷商的情緒非常非常正面。這將成為業界生產力最高、效率最高的推犁。

So we've got lots of excitement there now. We have to temper that a little bit in this calendar year because with the two back-to-back historic low snowfalls and still some elevated retail inventories, it's going to take some of our dealers a little bit of time to work through existing inventory before they grab our new product lines. But the long-term prospects there are just terrific.

所以我們現在對此感到非常興奮。我們必須在今年稍微緩和一下這一點，因為連續兩次出現歷史性低降雪，而且零售庫存仍然有所增加，我們的一些經銷商將需要一些時間來處理現有庫存。線。但那裡的長期前景非常好。

Great. That's good to hear. And then, on that, what are you hearing from dealers about the financial health of end-users? Have you -- like have multiple years of low snowfall affected their ability to buy equipment? Or have some of their businesses -- other businesses, like landscaping supported cash flow enough that it doesn't seem like many of them have financial distress?

偉大的。聽起來還不錯。那麼，關於這一點，您從經銷商那裡聽到了有關最終用戶財務狀況的哪些資訊？多年來的低降雪量是否影響了他們購買設備的能力？或者他們的一些業務——其他業務，例如景觀美化，足以支持現金流，以至於他們中的許多人似乎沒有陷入財務困境？

Yeah. I would say the reaction this year is similar to last year. We are partnered with very strong dealers. And what they are experiencing, I guess from their end users has not changed dramatically in the last couple of years. We've not had a lot of, I guess, dealer input to us that would be negative because of the weather patterns.

是的。我想說今年的反應跟去年相似。我們與非常強大的經銷商合作。我猜他們的最終用戶所經歷的事情在過去幾年裡並沒有發生巨大的變化。我想，我們沒有收到很多經銷商的意見，這些意見會因為天氣狀況而產生負面影響。

Okay. Thank you for the color there. And then my next question is what has been the order cadence at Dejana? Have backlogs increased so far this year?

好的。謝謝你那裡的顏色。然後我的下一個問題是 Dejana 的訂單節奏是怎麼樣的？今年到目前為止，積壓數量是否有增加？

Yeah, I can speak to solutions in total. Solutions in total, our orders have been very strong. Our backlog is still very high. It really has only come down about 10% from its record high. So we have not been softening of demand.

是的，我可以談談總體解決方案。總的來說，我們的訂單非常強勁。我們的積壓仍然很高。事實上，它只比歷史最高點下降了約 10%。所以我們並沒有軟化需求。

Got it. And then my last question, I know it's not the most likely outcome, but if it doesn't snow next winter, how do you think your balance sheet and attachments segments are positioned? And what's your view on solutions? You think you have enough backlog or visibility that it could be an offset next year?

知道了。然後我的最後一個問題，我知道這不是最有可能的結果，但如果明年冬天不下雪，您認為您的資產負債表和附件部分如何定位？您對解決方案有何看法？您認為您有足夠的積壓或可見度，可以在明年進行抵銷嗎？

Yeah, if we went to another year that would be similar to last year, there's a lot of things that have changed in the business that would be, I would say tailwinds for us. One, you mentioned, I mean, we have backlog in solution, our backlog in solution still is a year and possibly a little bit greater than a year. And then when you look at the cost savings program that we've implemented, a $10 million-plus savings a year, in addition to other baseline profit improvements that we've made. So from that standpoint, I mean, at this point, I do not have any concerns on the ability for our free cash flow in a similar year to cover our dividend like it will this year.

是的，如果我們再去一年，與去年類似，那麼業務中會有很多事情發生變化，我想說這對我們來說是有利的。一，你提到，我的意思是，我們的解決方案積壓了，我們的解決方案積壓仍然是一年，可能比一年多一點。然後，當您查看我們實施的成本節約計劃時，除了我們所做的其他基準利潤改進之外，每年還節省了 1000 萬美元以上。因此，從這個角度來看，我的意思是，在這一點上，我對類似年份的自由現金流能否像今年一樣支付股息的能力沒有任何擔憂。

That's great. Thank you for your time today.

那太棒了。感謝您今天抽出時間。

(Operator Instructions)

（操作員說明）

This concludes our question-and-answer session. I would like to turn the conference back over to Bob McCormick for any closing remarks.

我們的問答環節到此結束。我想將會議轉回鮑勃·麥考密克（Bob McCormick）發表閉幕詞。

Thank you for your continued interest in Douglas Dynamics. Let me finish with a few brief thoughts. We are encouraged by our positions in all the markets we serve today, and our long-term growth prospects remain intact. We're confident that our continuous improvement mindset will allow us to thrive as the external headwinds subside, and we continue to execute effectively, managed through the weather uncertainty, and focus on factors within our control.

感謝您對道格拉斯動力公司的持續關注。最後讓我談談幾點簡短的想法。我們對今天所服務的所有市場中的地位感到鼓舞，並且我們的長期成長前景保持不變。我們相信，隨著外部不利因素的消退，我們的持續改進心態將使我們能夠蓬勃發展，我們將繼續有效執行，應對天氣的不確定性，並專注於我們控制範圍內的因素。

I guess for those of you that have been around us quite a while, you know that we're focused on continuous improvement, you know that we have a get better everyday mentality. We're also a weather driven company, right? And this weather challenge we're navigating through, while we've never seen something like this before, remember it is short term. Weather will come back, and our attachments group will come back stronger when those weather conditions come back.

我想對於那些已經在我們身邊待了一段時間的人來說，你們知道我們專注於持續改進，你們知道我們每天都有更好的心態。我們也是一家以天氣為導向的公司，對嗎？我們正在應對這種天氣挑戰，雖然我們以前從未見過這樣的情況，但請記住這是短期的。天氣會回來，當這些天氣條件回來時，我們的附件小組會變得更強大。

The solutions group is showing ongoing continuous improvement in terms of results. I say all that, just to remind everybody of two things. Number one, our dividend remains our top priority and always will be, and we will generate enough free cash flow to cover that dividend in 2024. And number two, when these weather headwinds subside, our long-term financial targets are still clearly within our reach.

解決方案小組在成果方面表現出持續不斷的改進。我說這麼多，只是想提醒大家兩件事。第一，我們的股利仍然是我們的首要任務，而且永遠都是，我們將產生足夠的自由現金流來支付2024 年的股利。明顯在我們的範圍內。

So with that, thank you for your support. We look forward to speaking with you soon.

在此，感謝您的支持。我們期待盡快與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。