Douglas Dynamics Inc (PLOW) 2024 Q2 法說會逐字稿

Good morning and welcome to the Douglas Dynamics second-quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded.

早安，歡迎參加 Douglas Dynamics 2024 年第二季財報電話會議。（操作員說明）請注意此事件正在被記錄。

I'd now like to turn the conference over to Nathan Elwell. Please go ahead.

我現在想把會議交給內森·埃爾韋爾。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 we made during this conference call, including answers to your questions, will constitute forward-looking statements.

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，我們在本次電話會議中發表的一些評論，包括對您問題的回答，將構成前瞻性陳述。

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.

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 Jim Janik, Chairman and Interim President and CEO; and Sarah Lauber, Executive Vice President and CFO. Jim will provide an overview of our performance, followed by Sarah reviewing our financial results and guidance. After that, we'll open the call for questions.

今天與我一起參加電話會議的是董事長兼臨時總裁兼執行長吉姆‧賈尼克 (Jim Janik)；以及執行副總裁兼財務長 Sarah Lauber。吉姆將概述我們的業績，隨後莎拉將審查我們的財務表現和指導。之後，我們將開始提問。

With that, I'll hand the call over to Jim. Please go ahead.

這樣，我就把電話轉給吉姆。請繼續。

Thank you, Nathan. I'm pleased to be back talking to you all today as Interim President and CEO following Bob McCormick's retirement. On behalf of everyone at Douglas, I want to reiterate our gratitude to Bob for his dedicated service to the company over the past 20 years. As CFO, COO, and most recently President and CEO, we wish him all the best in his retirement.

謝謝你，內森。我很高興今天在鮑勃·麥考密克退休後作為臨時總裁兼首席執行官再次與大家交談。我謹代表道格拉斯公司的全體員工，再次感謝鮑伯過去 20 年為公司所做的竭誠服務。身為財務長、營運長以及最近的總裁兼首席執行官，我們祝他退休後一切順利。

Now, many of you may already know me, but here is a reminder about my background for those who don't. I joined the company in 1992 as Director of Sales and served in several roles before becoming President and CEO in 2000. I led the company in that role for 18 years before retiring at the end of 2018. I joined the Board in 2000 and became Chairman in 2014. As Chairman, I've stayed very involved since I retired. And it's been quite straightforward to step back into the CEO role.

現在，你們中的許多人可能已經認識我了，但這裡要提醒那些不認識我的人有關我的背景的資訊。我於 1992 年加入公司，擔任銷售總監，並擔任過多個職務，然後在 2000 年成為總裁兼執行長。我在這個職位上領導了公司 18 年，並於 2018 年底退休。我於 2000 年加入董事會，並於 2014 年成為董事長。身為主席，我退休後一直積極參與其中。重新擔任執行長的角色非常簡單。

In fact, it's been a pleasure to reconnect with some people and meet others. I've traveled around. Many of our locations have been invigorated by the quality of the people that I've talked to and the ideas being generated. I'm relishing the opportunities to collaborate with our world-class team as we work to maximize our near-term performance.

事實上，與一些人重新建立聯繫並結識其他人是一件很高興的事。我到處旅行過。我們的許多地點都因我所交談過的人員的素質和所產生的想法而充滿活力。我很高興有機會與我們世界一流的團隊合作，努力最大限度地提高我們的近期業績。

It's worth reiterating that I am committed to staying in this role while we find the next CEO to lead the company. We are not focused on a specific timeline and everyone on the Board agrees it is most important to appoint the right person rather than complete a quick search.

值得重申的是，在我們尋找下一任執行長來領導公司期間，我致力於繼續擔任這個職位。我們並不關注具體的時間表，董事會中的每個人都同意任命合適的人選而不是完成快速搜尋是最重要的。

We are evaluating both internal and external candidates and are willing to take the time necessary to conduct the search and make sure we get the right person to lead Douglas into the future.

我們正在評估內部和外部候選人，並願意花必要的時間進行搜索，並確保我們找到合適的人選來領導道格拉斯走向未來。

With that said, let's talk about the second quarter. The story is straightforward and a continuation of the trends we've seen recently. Under the circumstances, we turned in a positive performance driven by fantastic improvement at Work Truck Solutions. The teams at Dejana and Henderson did a great job of capitalizing on the opportunities in getting trucks through the facilities this quarter, producing our best second-quarter results for the segment on record.

說了這麼多，我們來談談第二季。這個故事很簡單，是我們最近看到的趨勢的延續。在這種情況下，在工作卡車解決方案的巨大改進的推動下，我們取得了積極的表現。Dejana 和 Henderson 的團隊在本季度充分利用卡車通過設施的機會方面做得很好，創造了該領域有史以來最好的第二季業績。

The other important factor this quarter was the successful implementation of the 2024 Cost Savings Program. As a public company, we have a duty to our stakeholders, including our investors and employees, to make tough decisions when situations dictate. 2024 Cost Savings Program is a great example of that.

本季的另一個重要因素是 2024 年成本節約計畫的成功實施。作為一家上市公司，我們對利害關係人（包括投資者和員工）有責任在情況需要時做出艱難的決定。2024 年成本節約計畫就是一個很好的例子。

During the firs-half of the year, the team made difficult decisions to align our cost structure at attachments. And in our corporate team in light of the demand outlook. The program initially implemented in the first quarter and expanded in the second quarter, continues to prove its worth and is now expected to deliver $11 million to $12 million in sustainable annual savings. This program is one of the main reasons we improved our profitability in the second quarter despite lower net sales.

今年上半年，團隊做出了艱難的決定，以調整附件的成本結構。並在我們的企業團隊中根據需求前景進行分析。該計劃最初在第一季實施，並在第二季度擴大，繼續證明其價值，目前預計可持續每年節省 1,100 萬至 1,200 萬美元。儘管淨銷售額較低，但該計劃是我們在第二季度提高獲利能力的主要原因之一。

Overall, results for the second quarter were approximately in line with the same period last year. Adjusted EBITDA and margins increased, which highlights the recent improvements in throughput at solutions and the cost structure changes at attachments. And we maintained our 2024 full-year outlook, which Sarah will talk to later in the call.

整體而言，第二季業績與去年同期大致持平。調整後的 EBITDA 和利潤率有所增加，這突顯了解決方案吞吐量的近期改進以及附件成本結構的變化。我們維持 2024 年全年展望，莎拉將在稍後的電話會議中談到這一點。

Now turning to the results in each segment, starting with attachments. Pre-season orders were softer than expected with results continuing to be impacted by two years in a row of significant below-average snowfall in our core markets, particularly on the East Coast. The most recent snow season was approximately 40% below the 10-year average, which led to difficult operating conditions during the first half of 2024.

現在轉向每個部分的結果，從附件開始。季前訂單比預期疲軟，我們的核心市場（尤其是東海岸）連續兩年降雪量顯著低於平均水平，持續影響業績。最近的雪季比 10 年平均低約 40%，這導致 2024 年上半年營運狀況困難。

Frankly, we've not seen back-to-back low snowfall seasons of this magnitude since the late 1980s and is certainly going to have an ongoing impact on demand. Despite lower net sales because of the successful implementation of the 2024 Cost Savings Program, adjusted EBITDA margins were an impressive 30% for the second quarter and in line with the same period last year.

坦白說，自 20 世紀 80 年代末以來，我們還沒有遇到過如此大規模的連續低雪季節，這肯定會對需求產生持續的影響。儘管由於成功實施 2024 年成本節約計畫而導致淨銷售額下降，但第二季調整後的 EBITDA 利潤率高達 30%，與去年同期持平，令人印象深刻。

It is worth noting that margins were also positively impacted by the mix of the products this quarter. To be clear, we do not anticipate quite the same favorable mix in the third quarter. Based on second-quarter shipments the ratio of pre-season shipments in 2024 will be closer to a 65-35 split between the second and third quarters rather than the 55-45 that we had initially been expecting.

值得注意的是，本季產品組合也對利潤率產生了正面影響。需要明確的是，我們預計第三季不會出現同樣有利的組合。根據第二季的出貨量，2024 年季前出貨量的比例將更接近第二季和第三季的 65:35，而不是我們原先預期的 55:45。

Of course, the lack of snowfall in recent years negatively impacted pre-season orders as we predicted due to the equipment not being used as much. This lengthens the equipment replacement cycle and rest assured we will be paying careful attention to order activity and dealer inventories in the third quarter.

當然，正如我們預測的那樣，近年來降雪不足對季前訂單產生了負面影響，因為設備沒有充分使用。這延長了設備更換週期，請放心，我們將密切注意第三季的訂單活動和經銷商庫存。

Given these circumstances, we are pleased with our operational performance and cost-control efforts. With the continued focus from end users in getting more jobs done faster, we are also focused on expanding our product lines.

鑑於這些情況，我們對我們的營運績效和成本控制努力感到滿意。隨著最終用戶持續專注於更快地完成更多工作，我們也致力於擴大我們的產品線。

Our teams launched several innovative new products this year that have been well received by the dealers. And today our equipment offering covers virtually every aspect of commercial snow and ice control with more exciting products in development.

我們的團隊今年推出了多款創新的新產品，受到了經銷商的好評。如今，我們的設備產品幾乎涵蓋了商業冰雪控制的各個方面，並且正在開發更多令人興奮的產品。

Finally, I'm pleased to say that both dealer sentiment and financial health also remain positive. Before going further, I want to briefly mention two new and interesting projects at work -- at Work Truck Attachments. First, the expansion of our strategic alliance with John Deere, which marks an important milestone in the ongoing partnership that began four years ago. This agreement expands the strategic sales alliance to include tractors and industrial equipment.

最後，我很高興地說，經銷商情緒和財務狀況也保持積極。在進一步討論之前，我想簡單提一下工作中的兩個有趣的新項目——工作卡車附件。首先，擴大我們與約翰迪爾的策略聯盟，這標誌著四年前開始的持續合作夥伴關係的一個重要里程碑。該協議擴大了戰略銷售聯盟，將拖拉機和工業設備納入其中。

Through this partnership, John Deere can now offer Western products, plows and spreaders for a wide range of gear vehicles, from the smallest UTVs to the largest tractors and wheel loaders opening new sales channels and reinforcing the ongoing partnership efforts. But keep in mind the traditional truck equipment dealer network remains the main focus of our distribution channels. While this alliance allows us to reach different customer groups that don't currently have access to our equipment.

透過這種合作關係，約翰迪爾現在可以為各種齒輪車輛提供西方產品、犁和吊具，從最小的UTV 到最大的拖拉機和輪式裝載機，開闢新的銷售管道並加強持續的合作夥伴關係。但請記住，傳統的卡車設備經銷商網路仍然是我們分銷管道的主要焦點。雖然這個聯盟使我們能夠接觸到目前無法使用我們設備的不同客戶群。

I'm also pleased to report that we also recently finalized a national partnership with a leading vehicle and equipment rental company, which designates Western Products as their preferred snow and ice partner. The primary goal of this collaboration is to equip our partner with our full line of snow and ice removal equipment for their network in the snow belt. This is a terrific job by our business development team at attachments for securing these strategic partnerships.

我還很高興地報告，我們最近還與一家領先的車輛和設備租賃公司達成了全國合作夥伴關係，該公司指定 Western Products 作為他們的首選冰雪合作夥伴。此次合作的主要目標是為我們的合作夥伴配備我們全系列的除雪除冰設備，用於其雪帶網路。這是我們的業務開發團隊為確保這些策略合作夥伴關係所做的一項出色的工作。

Okay, turning to results at solutions. I'm pleased to confirm that the Solutions team delivered a record second-quarter results with 24% net sales growth and adjusted EBITDA margin of 9.7%. This is the 8th consecutive quarter of improved performance versus the prior year. This performance demonstrates that our long-term goals are very achievable when external circumstances allow. However, progress is not going to be linear and we expect margins to be flat in the third and fourth quarters when compared to the previous year.

好的，轉向解決方案的結果。我很高興地確認，解決方案團隊交付了創紀錄的第二季業績，淨銷售額成長 24%，調整後 EBITDA 利潤率為 9.7%。這是連續第八個季度業績較上年有所改善。這一表現表明，在外部環境允許的情況下，我們的長期目標是可以實現的。然而，進展不會是線性的，我們預計第三季和第四季的利潤率將與去年持平。

Our team at Dejana continues to focus their attention to match the industry trends and driving improvements in the fleet business, where the supply of chassis are currently the strongest. While customers are becoming more price conscious, demand remains positive and we are working on new projects and initiatives to broaden our offering and drive sustainable long-term growth. While we still don't have great visibility into future trends, I'm glad to report chassis availability no longer seems to be a major issue.

我們 Dejana 的團隊繼續專注於順應行業趨勢並推動車隊業務的改進，其中底盤供應目前最為強勁。儘管客戶對價格越來越敏感，但需求仍然積極，我們正在進行新項目和舉措，以擴大我們的產品範圍並推動可持續的長期成長。雖然我們仍然對未來趨勢沒有很好的了解，但我很高興地報告底盤可用性似乎不再是一個主要問題。

At Henderson, the low-margin contracts that have been a drag on our performance are virtually complete, which has definitely helped our profitability. Municipal demand remains positive and despite increasing the velocity of trucks being upfit, our backlog remains robust. These results bode well for the future, and it's important to remember, in general, the supply of chassis is less constrained today than any point since the start of the pandemic.

在亨德森，拖累我們業績的低利潤合約幾乎已經完成，這無疑有助於我們的獲利能力。市政需求仍然積極，儘管卡車的組裝速度增加，但我們的積壓仍然強勁。這些結果對未來來說是個好兆頭，重要的是要記住，總的來說，今天的底盤供應比疫情開始以來的任何時候都更少。

Demand remains positive at both municipal and commercial customers. We still have 12 months of backlog to work through and in some cases is growing due to order intake and we continue to improve the efficiency of our operations. The goal of delivering improved mid to high-single-digit EBITDA margins for 2024 remains intact.

市政和商業客戶的需求仍然樂觀。我們仍有 12 個月的積壓訂單需要處理，在某些情況下，由於訂單量的增加，積壓訂單數量還在增加，我們將繼續提高營運效率。到 2024 年實現中高個位數 EBITDA 利潤率的目標仍然不變。

However, we do expect to see some softness in profitability with adjusted EBITDA margins expected to be a lower in Q3 than the first half of 2024 and close to the same levels as third quarter 2023. All of this reinforces our confidence that we can achieve our longer-term growth and profitability goals in the years ahead.

然而，我們確實預計獲利能力將出現一些疲軟，調整後的 EBITDA 利潤率預計第三季將低於 2024 年上半年，並接近 2023 年第三季的水平。所有這些都增強了我們對未來幾年能夠實現長期成長和獲利目標的信心。

So in closing, we're encouraged by the progress made by the Solutions team over the past 12 months, and we see a positive future going forward. We're doing the things we need to do despite being painful, but today we see a clear path forward. Carefully managing our manufacturing operations is allowing us to maintain our market position while we manage through the current situation, we are always keeping an eye on the future.

最後，我們對解決方案團隊在過去 12 個月中的進展感到鼓舞，並且我們看到了積極的未來。儘管很痛苦，我們仍在做我們需要做的事情，但今天我們看到了一條清晰的前進道路。仔細管理我們的製造業務使我們能夠在應對當前情況的同時保持市場地位，並始終關注未來。

We will continue to address opportunities and challenges in a logical and effective manner, making the tough decisions when we have to, as well as choosing when to stay the course and when to double down. I look forward to leading the company through this period until the new CEO is ready to take the reins.

我們將繼續以合乎邏輯且有效的方式應對機會和挑戰，在必要時做出艱難的決定，並選擇何時堅持到底、何時加倍努力。我期待著帶領公司度過這段時期，直到新任執行長準備好掌權。

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

說到這裡，我想把電話轉給莎拉，讓她了解我們的財務狀況。

Thank you, Jim. I will jump right in and point out the two main takeaways from this quarter. One, the hard work over the last few years in our solutions segment is paying off, as evidenced by the record second quarter results with significant top and bottom-line growth. And two, the tough decisions made earlier this year to adjust our cost structure were important for us to be able to maintain our strong financial position.

謝謝你，吉姆。我將立即指出本季的兩個主要要點。第一，過去幾年我們在解決方案領域的辛勤工作正在得到回報，第二季創紀錄的業績以及收入和利潤的顯著增長證明了這一點。第二，今年稍早為調整我們的成本結構而做出的艱難決定對於我們能夠保持強勁的財務狀況非常重要。

During the second quarter, we saw profitability improve on lower net sales based on the management of throughput, pricing realization, and the successful implementation of the 2024 Cost Savings Program. Overall, our consolidated results for the second quarter were approximately in line with the same period last year across all metrics.

在第二季度，基於吞吐量管理、定價實現以及 2024 年成本節約計畫的成功實施，我們看到獲利能力因淨銷售額下降而有所改善。整體而言，我們第二季的綜合業績在所有指標上均與去年同期大致一致。

Net sales were $199.9 million for the second quarter 2024, a slight decrease compared to the same period last year due to lack of snowfall, leading to lower volumes and attachments, which was largely offset by strong shipments at solutions. The 2024 Cost Savings program is now expected to deliver $11 million to $12 million in sustainable annualized savings, $9 million of which is expected to be realized in 2024.

2024 年第二季淨銷售額為1.999 億美元，與去年同期相比略有下降，原因是降雪不足，導致銷量和配件減少，但這在很大程度上被解決方案的強勁出貨量所抵消。2024 年成本節約計畫目前預計將帶來 1,100 萬至 1,200 萬美元的可持續年度節約，其中 900 萬美元預計將在 2024 年實現。

SG&A expenses including intangibles amortization decreased 6.7% to $25 million compared to second quarter 2023, primarily due to the 2024 Cost Savings Program plus lower intangibles amortization as well as lower stock and incentive-based compensation.

與2023 年第二季度相比，包括無形資產攤銷在內的SG&A 費用下降了6.7%，至2500 萬美元，這主要是由於2024 年成本節約計劃加上無形資產攤銷減少以及基於股票和激勵的薪酬減少。

Interest expense increased slightly to $4.1 million from $3.7 million. GAAP net income for the second quarter 2024 was $24.3 million, or $1.02 per diluted share, approximately in line with the same period last year. Adjusted EBITDA for the quarter increased to $43.7 million when compared to $43.3 million for the second quarter of 2023.

利息支出從 370 萬美元小幅增加至 410 萬美元。公認會計準則2024 年第二季淨利為 2,430 萬美元，或攤薄後每股收益 1.02 美元，與去年同期大致持平。本季調整後 EBITDA 增至 4,370 萬美元，而 2023 年第二季為 4,330 萬美元。

Adjusted EBITDA margin increased 100 basis points to 21.9%, highlighting the improved throughput at solutions and cost structure changes at attachments. The effective tax rate was 24.2% and 22% for the second quarter of 2024 and 2023 respectively. The effective tax rate was higher than the prior year due to the establishment of reserves for uncertain tax positions of 900,000.

調整後的 EBITDA 利潤率增加了 100 個基點，達到 21.9%，凸顯了解決方案吞吐量的提高和附件成本結構的變化。2024年和2023年第二季的有效稅率分別為24.2%和22%。由於為不確定的納稅狀況建立了900,000的準備金，有效稅率高於上年。

With that said, let's look at results in our two segments. First, attachments net sales were $118.1 million for the quarter compared to $141.2 million in the second quarter of last year. Pre-season orders were down after two years in a row, significantly below-average snowfall in our core markets, particularly on the East Coast. Due to the successful implementation of the 2024 Cost Savings Program and favorable product mix, adjusted EBITDA margins were robust at 30.3% for the quarter, in line with the same period last year.

話雖如此，讓我們看看兩個部分的結果。首先，本季附件淨銷售額為 1.181 億美元，去年第二季為 1.412 億美元。季前訂單連續兩年下降，我們的核心市場（尤其是東海岸）的降雪量明顯低於平均值。由於 2024 年成本節約計畫的成功實施和有利的產品組合，本季調整後 EBITDA 利潤率強勁，達到 30.3%，與去年同期持平。

Based on the second quarter, we now expect pre-season to be more heavily weighted toward the second quarter, and we anticipate an approximate 65 to 35 ratio between second and third-quarter pre-season shipments compared to the range of 55 to 45 that we originally expected. While our margins were great this quarter, we know some of the strength means orders have been pulled forward from the third and fourth quarters.

根據第二季的情況，我們現在預計第二季季前出貨量的比重將更大，我們預計第二季和第三季季前出貨量之間的比例約為65 比35，而第第二季季前出貨量的比例為55 比45。雖然本季我們的利潤率很高，但我們知道，一些優勢意味著訂單已從第三季和第四季提前。

In addition, it's worth noting that we expect third-quarter EBITDA margins to be closer to the third quarter of last year, which was 16.2%. The main reasons for this are expected lower production volumes based on reducing production days and less profitable product mix in the third quarter of this year.

此外，值得注意的是，我們預計第三季 EBITDA 利潤率將接近去年第三季的 16.2%。造成這種情況的主要原因是，由於今年第三季生產天數減少和利潤較低的產品組合，預計產量將會下降。

Overall, the impact of unprecedented weather in recent winters is having the impact we expected, that our efforts to align our cost structure are working as we intended. Taking a look at Work Truck Solutions where the team delivered a very strong performance across the Board this quarter with record second-quarter results. Net sales increased 23.8% to $81.8 million compared to the same period last year, based on higher volumes on improved throughput and price increase realization.

總體而言，最近冬季前所未有的天氣影響正在產生我們預期的影響，我們調整成本結構的努力正在按我們的預期發揮作用。看看工作卡車解決方案，本季全面表現強勁，第二季業績創歷史新高。與去年同期相比，淨銷售額成長了 23.8%，達到 8,180 萬美元，這是由於吞吐量提高和價格上漲實現的銷量增加所致。

Adjusted EBITDA increased dramatically from $1 million in the second quarter last year to $7.9 million this quarter. This produced adjusted EBITDA margin of 9.7%. The improvements were based on higher volumes and price increase realization as well as improved operating efficiencies and positive product mix.

調整後 EBITDA 從去年第二季的 100 萬美元大幅增加至本季的 790 萬美元。這使得調整後的 EBITDA 利潤率為 9.7%。這些改進是基於銷售的增加和價格的上漲，以及營運效率的提高和積極的產品組合。

The good news is, it was a straightforward quarter for both Dejana and Henderson and both still maintain a very strong backlog and a positive demand outlook. With improved operating conditions, our teams remain fully focused on maximizing velocity in the coming quarters.

好消息是，對於 Dejana 和 Henderson 來說，這是一個簡單的季度，兩家公司仍然保持著非常強勁的積壓和積極的需求前景。隨著營運條件的改善，我們的團隊將繼續全力專注於在未來幾季最大限度地提高速度。

Turning to the balance sheet liquidity figures, for the first six months of the year, net cash used in operating activities decreased 71% to negative $19.1 million compared to the same period last year. The improvement was due to favorable changes in working capital of $40.1 million related to inventory and account payable improvements.

資產負債表流動性數據顯示，今年前六個月，經營活動使用的淨現金與去年同期相比下降了 71%，至負 1,910 萬美元。這一改善是由於與庫存和應付帳款改善相關的 4,010 萬美元營運資金的有利變化。

Free cash flow to the six months ended June 30, 2024, was negative $21.9 million compared to negative $71.5 million in the corresponding period in 2023, an increase of $49.6 million. At the end of the second quarter, we maintained $90.7 million of total liquidity, comprised of $4.2 million in cash, $86.5 million of capacity on the revolver compared to $126.7 million in total liquidity at the end of 2023.

截至 2024 年 6 月 30 日止六個月的自由現金流為負 2,190 萬美元，而 2023 年同期為負 7,150 萬美元，增加了 4,960 萬美元。截至第二季末，我們維持了 9,070 萬美元的總流動性，其中包括 420 萬美元的現金和 8,650 萬美元的左輪手槍容量，而 2023 年底的總流動性為 1.267 億美元。

The change is primarily due to the seasonality of our business as well as reductions in spending. Inventory at the end of the quarter was $139.4 million, lower than the $148.9 million at the end of the second quarter of 2023. Accounts receivable at the end of the quarter were $140.2 million, right in line with the $139.4 million recorded at the end of the second quarter 2023.

這項變更主要是由於我們業務的季節性以及支出的減少。本季末的庫存為 1.394 億美元，低於 2023 年第二季末的 1.489 億美元。本季末的應收帳款為 1.402 億美元，與 2023 年第二季末的 1.394 億美元持平。

Capital expenditures in the first half of this year were $2.8 million, close to half of the $5.3 million in the same period last year and in line with our expectations. We continue to expect total CapEx for the year to be on the low end of our targeted range of 2% to 3% of net sales based on our curtailed overall spending.

今年上半年的資本支出為280萬美元，接近去年同期530萬美元的一半，符合我們的預期。根據我們削減的總體支出，我們仍然預計今年的總資本支出將處於淨銷售額 2% 至 3% 目標範圍的低端。

As usual, we paid the dividend of $0.295 per share at the end of the second quarter. We expect to produce enough free cash flow during the year to cover the total cost of the dividend, which remains our top priority.

像往常一樣，我們在第二季末支付了每股 0.295 美元的股息。我們預計年內將產生足夠的自由現金流來支付股利的總成本，這仍然是我們的首要任務。

Finally, our leverage ratio at June 30 was 3.3 times, which is within the covenant of our debt agreement and a couple of points lower than the 3.5 times at the end of 2023. Over the medium term, we expect the leverage ratio to return to our target ratio range of 1.5 to 3 times.

最後，我們截至 6 月 30 日的槓桿率為 3.3 倍，在債務協議的範圍內，比 2023 年底的 3.5 倍低了幾個百分點。從中期來看，我們預期槓桿率將回到1.5至3倍的目標比率範圍。

Let's turn to the outlook for the rest of the year. As I noted in the earnings release, pre-season orders at attachments came in softer than we originally expected. There will probably be tough year-over-year comparisons at attachments in the third quarter.

讓我們轉向今年剩餘時間的展望。正如我在財報中指出的那樣，附件的季前訂單量比我們最初預期的要軟。第三季的附件可能會出現艱難的年比比較。

We will continue to closely monitor reorder activity and dealer inventory, but we believe our aggressive efforts to reduce production plans will pay off as we navigate the elongated replacement cycles. As always, we're planning for average snowfall in the fourth quarter, but given the elongated replacement cycle, average snowfall is unlikely to produce average volumes.

我們將繼續密切監控再訂購活動和經銷商庫存，但我們相信，隨著我們應對延長的更換週期，我們為減少生產計劃所做的積極努力將會得到回報。像往常一樣，我們計劃第四季度的平均降雪量，但考慮到更換週期延長，平均降雪量不太可能產生平均量。

The Solutions segment produced strong year-over-year improvements in the first half of the year. And as we previously noted, we expect the second half of 2024 to be similar to the second half of 2023. The tougher comparisons in the second half of the year are based on product mix and the timing of certain shipments. And for the year, we still expect our adjusted EBITDA margins in Solutions to be in the mid to high single digits.

今年上半年，解決方案部門與去年同期相比取得了強勁的進步。正如我們之前指出的，我們預計 2024 年下半年將與 2023 年下半年相似。下半年更嚴格的比較是基於產品組合和某些出貨時間。今年，我們仍然預計解決方案領域調整後的 EBITDA 利潤率將達到中高個位數。

I'm pleased to say Solutions still have a strong backlog and solid demand and remains on track to deliver improved full-year results for the third year in a row. Therefore, we are comfortable maintaining our 2024 guidance ranges based on the strong performance of Solutions and the success of our 2024 cost-savings program.

我很高興地說，解決方案仍然有大量的積壓和穩定的需求，並且仍然有望連續第三年改善全年業績。因此，基於解決方案的強勁表現和 2024 年成本節約計畫的成功，我們很樂意維持 2024 年指導範圍。

Just to reiterate, our 2024 financial outlook indicates net sales between $600 million and $640 million, with adjusted EBITDA predicted to range from $70 million to $90 million. Delivering adjusted earnings per share in the range of $1.20 per share to $1.70 per share.

重申一下，我們 2024 年的財務展望顯示淨銷售額在 6 億美元到 6.4 億美元之間，調整後的 EBITDA 預計在 7,000 萬美元到 9,000 萬美元之間。調整後每股收益在每股 1.20 美元至 1.70 美元之間。

Finally, the effective tax rate is expected to be approximately 24% to 25%. And it's worth reiterating the three assumptions behind this outlook. One, relatively stable economic conditions. Two, stable to slightly improving supply of chassis and components.

最後，有效稅率預計約為24%至25%。值得重申這項前景背後的三個假設。一是經濟情勢相對穩定。二是底盤及零件供應穩定略有改善。

And finally, that core markets will experience average snowfall in the fourth quarter of 2024. We firmly believe the ongoing improvements at Solutions and the tough work implementing the 2024 Cost Savings Program mean we are well-positioned for the future and will yield improved earnings power over the long-term.

最後，核心市場將在 2024 年第四季經歷平均降雪量。我們堅信，Solutions 的持續改進以及實施 2024 年成本節約計劃的艱苦工作意味著我們為未來做好了準備，並且長期來看將提高盈利能力。

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？

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員說明）

Mike Shlisky, DA Davidson.

麥克·什利斯基，檢察官戴維森。

Good morning. Thanks for taking my questions. I wanted to touch first on order activity in [Geek] Solutions. Certainly, seeing stronger throughput is a lot of that due to existing backlogs, or would you say that incoming orders are covering what's coming out of the backlog and perhaps you're seeing a book to bill at or above one at the current time?

早安.感謝您回答我的問題。我想先談談 [Geek] Solutions 中的訂單活動。當然，看到更強的吞吐量很大程度上是由於現有的積壓，或者您是否會說傳入的訂單覆蓋了積壓的訂單，也許您看到一本書的賬單目前等於或高於一本書？

Yes, it's pretty simply. What's coming out of the backlog is the current productions. We're also taking new orders that are generally replacing those. So we're still seeing a very strong backlog that in a few cases is actually growing. So it isn't diminishing the backlog very much at this particular point, which is good to have that visibility going into 2025 and beyond.

是的，這很簡單。積壓的產品是當前的產品。我們也接受了新訂單，這些訂單通常會取代那些訂單。因此，我們仍然看到大量的積壓，在某些情況下實際上還在成長。因此，在這個特定時刻，積壓工作並沒有減少太多，這對於 2025 年及以後的可見度來說是件好事。

Yes, I'll just add to that, Mike. The backlog in Solution is sequentially up quarter-to-quarter, but it's really only down 10% from the peak, which was a couple of years ago. So still strength in the backlog.

是的，我要補充一點，麥克。解決方案的積壓量逐季增加，但實際上僅比幾年前的峰值下降了 10%。因此，積壓訂單仍然強勁。

Got it. Want to also ask about solutions in margins as well. You know, it's been a pretty long journey over the last five years, but it looks like this quarter you finally got back to that pre-pandemic margin level, and you're at least as of this quarter, were kind of knocking on the door of double-digit EBITDA margins. #

知道了。還想詢問利潤方面的解決方案。你知道，過去五年是一段相當漫長的旅程，但看起來這個季度你終於回到了大流行前的利潤水平，而且至少截至本季度，你已經敲響了兩位數的 EBITDA 利潤率之門。#

That might change in the back half but given the number of units going through facilities and what you've done over the last five years with efficiencies and implementation of DDMS principles. And what you've added since over the last couple of years, I kind of wonder if 10% income margins for that segment is an ending point.

這可能會在後半段發生變化，但考慮到通過設施的設備數量以及您在過去五年中在效率和 DDMS 原則實施方面所做的工作。從過去幾年以來您所添加的內容，我有點想知道該細分市場 10% 的利潤率是否是一個終點。

It sounds like you're nowhere near where you could be on throughput, and you've got plenty of cost initiatives that haven't really shown up yet in the P&L. So can you maybe just give us some reasonable assessment of where solutions margins could be in a truly normalized environment?

聽起來您的吞吐量還遠未達到預期水平，而且您還有大量成本計劃尚未真正體現在損益表中。那麼，您能否給我們一些合理的評估，以了解在真正標準化的環境中解決方案的利潤可能達到什麼水平？

Absolutely. It's a great question, Mike.

絕對地。這是一個很好的問題，麥克。

And we are extremely pleased to see the results of all the hard work that we've put in over the last couple of years at Solutions. And this was a great quarter that really is demonstrating all of that. There was a lot that was firing on all cylinders in the second quarter. And as I said in my script, I expect the back half to maybe not have all those things firing and will be closer to where we were last year in the back half.

我們非常高興地看到我們過去幾年在 Solutions 所付出的所有努力所取得的成果。這是一個偉大的季度，真正證明了所有這些。第二季度有很多事情都在全力進行。正如我在劇本中所說，我預計後半部分可能不會有所有這些事情發生，並且會更接近去年後半部分的水平。

But bottom line, the improvements that we're seeing are sustainable improvements. And so as we navigate into 2025, I think we'll be closer to that double-digit to low-teens long-term target, and we're just going to continue to focus on the plans we need to continue to make improvement to get there.

但最重要的是，我們看到的改進是可持續的改進。因此，當我們進入 2025 年時，我認為我們將更接近兩位數到低十幾歲的長期目標，我們將繼續專注於我們需要繼續改進的計劃到那裡。

Got it. And turning to M&A, we saw a deal on the solution side in the up-turning world earlier this week, a pretty good-sized deal. And part of the rationale from the buyer was more scale, more product breadth, and more geographic reach for all their products.

知道了。談到併購，本週早些時候，我們在不斷好轉的世界中看到了一筆解決方案方面的交易，一筆規模相當大的交易。買家的部分理由是他們的所有產品具有更大的規模、更多的產品廣度和更大的地理覆蓋範圍。

Can you discuss Douglas's desire to pursue similar growth in Solutions, especially when you get past the extreme low in attachments and the cash flow that normally brings? Just curious whether A. you are pursuing or looking at things and solutions to add to your portfolio. And B. Jim, if that is a job for the next CEO or if you're willing to kind of go that route in the near future?

您能否討論道格拉斯在解決方案方面追求類似增長的願望，特別是當您克服了通常帶來的極低的附件和現金流時？只是好奇 A. 您是否正在追求或正在尋找要添加到您的投資組合中的事物和解決方案。B. Jim，這是否是下一任執行長的工作，或者您是否願意在不久的將來走這條路？

No, Mike, longer term, we look at a lot of opportunities both in attachments and solutions. In 2024, we're not looking at anything specifically. There are a couple of things out there that might be interesting in 2025, but right now it sort of pencils down for us on acquisition or M&A.

不，麥克，從長遠來看，我們在附件和解決方案方面都看到了很多機會。到 2024 年，我們不會專門關注任何事情。到 2025 年，有幾件事可能會很有趣，但現在對我們來說，收購或併購方面的事情有點懸而未決。

So, just to clarify, is that a function of -- you're waiting for the next CEO to take that on? Is it the balance sheet question and the current business trends and attachments is holding you back, but what do you need to see to kind of get something going on the M&A side?

所以，澄清一下，這是一個功能——你正在等待下一任執行長來接手這個任務嗎？是否是資產負債表問題以及當前的業務趨勢和配件阻礙了您，但是您需要看到什麼才能在併購方面取得進展？

I think first of all, we're looking for specific opportunities and those opportunities right now aren't available. And that's the primary hurdle for us, I think, for the right opportunity, certainly it would either be the new CEO or it could be me, depending on how long the search takes. But it really comes down to finding exactly the right property that we think fits our company. But I don't want to get into too much detail because that would probably not be a good place to go.

我認為首先，我們正在尋找特定的機會，而這些機會現在還沒有。我認為，這是我們面臨的主要障礙，對於合適的機會，當然要么是新任首席執行官，要么是我，這取決於尋找需要多長時間。但歸根究底還是要找到我們認為適合我們公司的合適財產。但我不想透露太多細節，因為那可能不是個好去處。

Sure. Well, I appreciate the color, and I'll pass it along. Thank you.

當然。好吧，我很欣賞這個顏色，我會把它傳遞出去。謝謝。

Robert Schultz, Baird.

羅伯特舒爾茨，貝爾德。

Hey, guys, thanks for taking the questions. Just starting off here, what do you think is really driving dealers to pull forward orders and attachments? I think we had a similar dynamic last year where Q2 had a higher split of total pre-season orders than expected coming into the year. So what are you guys seeing there?

嘿，夥計們，感謝您提出問題。首先，您認為真正促使經銷商提前訂單和附件的因素是什麼？我認為去年我們也有類似的動態，第二季季前訂單總額的比例高於今年的預期。那麼你們在那裡看到了什麼？

I would say it's not necessarily dealers pulling ahead orders as it is, we have our pre-season ordering period. And then we have the ability to produce and ship the best way possible for our manufacturing facilities. And we were able to ship more out in June than we had expected. We are taking more production out in the third quarter than we did last year because we have lower volumes than where we were last year.

我想說，這不一定是經銷商提前訂單，我們有季前訂購期。然後我們就有能力以最佳方式為我們的製造設施生產和運輸。我們六月的出貨量超出了我們的預期。我們第三季的產量比去年更多，因為我們的產量比去年低。

So I think it's really more a function of, one, us having the right inventory and the ability to ship. And then two, level loading and figuring out the best way to manage our production and our inventory level based on our lower volume levels.

所以我認為這實際上更多地取決於我們擁有正確的庫存和運輸能力。第二，水平裝載並根據較低的產量水準找出管理生產和庫存水準的最佳方法。

Got it. And then more on attachments, you guys called out the product mix was better there. More specifically, did you guys have higher P&A sales, or did you have favorable mix within plows? And maybe why does that not continue into the third quarter?

知道了。然後更多關於附件，你們指出那裡的產品組合更好。更具體地說，你們的 P&A 銷售額是否更高，或者你們在犁方面是否有有利的組合？也許為什麼這種情況沒有持續到第三季？

Yes, we actually in the second quarter going back to what I was just talking about, so we did ship out quite a bit of truck-mounted plows, which are higher margin plows. We also did have a higher merge in parts and accessories. And when you look at our parts and accessories for year to date versus last year, we're almost flat to last year.

是的，我們實際上在第二季度回到了我剛才所說的，所以我們確實運送了相當多的車載犁，這是利潤率較高的犁。我們在零件和配件方面也確實有更高的融合。當你看到我們今年迄今為止的零件和配件與去年相比時，我們幾乎與去年持平。

Whereas, you know, our other volumes, you can see the amount of volume that we're down just after two low snow season. So I don't fully expect that we'll have the same level of orders to ship in those product categories in the third quarter.

然而，你知道，我們的其他卷，你可以看到我們在兩個低雪季節之後減少了卷的數量。因此，我並不完全期望第三季我們將在這些產品類別中交付相同水準的訂單。

Got it. And then we've seen steel prices come down since the start of the year. What are your expectations for price cost as we kind of think about the remainder of 2024 and into 2025?

知道了。自今年年初以來，我們看到鋼材價格有所下降。當我們考慮 2024 年剩餘時間和 2025 年時，您對價格成本有何期望？

I can take that one. The cost of materials for the most part has been pretty flat with steel, obviously, to your point, has come down. I think we'll enjoy that in the fourth quarter and in the first quarter, but right now it's quite low, which we enjoy. But as you know, these things can change and a lot of that is based on lower demand in the Chinese market. So if that market picks up, certainly copper, aluminum, steel can go up, too. But we're looking forward to some stable pricing over the next few months for sure.

我可以接受那個。大部分材料的成本與鋼材相當持平，顯然，就你的觀點而言，已經下降了。我認為我們會在第四季度和第一季享受這一點，但現在它相當低，我們很享受。但如您所知，這些事情可能會發生變化，其中很大一部分是基於中國市場需求的下降。因此，如果市場回暖，銅、鋁、鋼肯定也會上漲。但我們肯定期待未來幾個月的價格穩定。

Awesome. Thanks, guys, and I'll leave it there.

驚人的。謝謝，夥計們，我會把它留在那裡。

Thanks.

謝謝。

Greg Burns, Sidoti & Company.

格雷格‧伯恩斯 (Greg Burns)，西多蒂公司 (Sidoti & Company)。

Just looking for a little bit of clarity on the guidance around solutions for the second half. When you're talking about similar results to the year-ago period, is that from a margin perspective, or is that also from a revenue perspective?

只是尋找有關下半年解決方案的指導的一些清晰度。當您談論與去年同期類似的結果時，是從利潤角度還是收入角度？

From an EBITDA margin perspective, I don't expect the second-quarter margins to be linear. So what we've talked about in solutions is that we expect this year to have continued improvement to double digits for the full year. And so I still expect that. But when you look at the quarterly margins, I expect the EBITDA margins to be closer to Q3 and Q4 of last year, respectively.

從 EBITDA 利潤率的角度來看，我預計第二季的利潤率不會是線性的。因此，我們在解決方案中談到的是，我們預計今年全年將持續改善至兩位數。所以我仍然期待這一點。但當你看季度利潤率時，我預計 EBITDA 利潤率將分別接近去年第三季和第四季。

Okay. And then with the, I guess, the throughput you saw in the second quarter and the backlog that you have, is there any reason to believe that? Was there anything special that occurred in this quarter that drives such high throughput and revenue this quarter? Or should we think about that continuing into the second-half of the year?

好的。然後，我想，根據您在第二季度看到的吞吐量和積壓的訂單，有任何理由相信這一點嗎？本季是否發生了任何特別的事情導致本季如此高的吞吐量和收入？或者我們應該考慮這種情況持續到今年下半年嗎？

Yes, there was some favorable product mix. We had some higher-margin jobs that were shipped out in the second quarter that I don't expect to be in the third quarter. And then I would also say, just from a Henderson standpoint, I guess, the throughput improvement and then the contracts that we had in the second quarter were also favorable. So it's not one big thing, it's kind of spread across both businesses. That brings me closer to last year margins.

是的，有一些有利的產品組合。我們有一些利潤較高的工作在第二季交付，但我預計第三季不會。然後我還要說，僅從亨德森的角度來看，我想吞吐量的改善以及我們在第二季度獲得的合約也都是有利的。所以這不是一件大事，而是分佈在兩個業務中。這讓我更接近去年的利潤率。

Okay. And then I guess in terms of the balance sheet and the leverage, I guess, it's stepping back down at the end of the third quarter. You're comfortable with how the year is lining up, staying within your covenant ratios?

好的。然後我想就資產負債表和槓桿而言，我想它會在第三季末有所回落。您對這一年的安排感到滿意嗎？

Yes, we are.

是的，我們是。

Okay. All right. Thank you.

好的。好的。謝謝。

(Operator Instructions)

（操作員說明）

There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Jim Janik, Chairman and Interim CEO, for any closing remarks.

隊列中沒有更多問題。我們的問答環節到此結束。我想將會議轉回主席兼臨時執行長吉姆賈尼克 (Jim Janik) 發表閉幕詞。

Thank you for your time today and your interest in Douglas Dynamics. We're pleased that the hard work to improve our operations is starting to pay off, and our consistent focus on continuous improvement will help ensure we maximize the potential of any situation.

感謝您今天抽出時間以及對道格拉斯動力公司的興趣。我們很高興改善營運的努力開始得到回報，我們對持續改進的一貫關注將有助於確保我們最大限度地發揮任何情況的潛力。

We know the weather will turn in our favor at some point and what it does to our attachments team will be ready to deliver for our customers, until it does, we will effectively manage our operations to preserve profitability while still keeping an eye on the future.

我們知道天氣會在某個時候對我們有利，而它對我們的附件團隊的影響將準備好為我們的客戶提供服務，直到它發生之前，我們將有效地管理我們的營運以保持盈利能力，同時仍然關注未來。

Our attachments team has made significant moves to become right sized for the current environment. And with decent snowfall in the coming winters, we should experience some nice tailwinds in 2025 and beyond.

我們的附件團隊已採取重大舉措，以適應當前環境的規模。隨著即將到來的冬季降雪量大，我們應該會在 2025 年及以後經歷一些不錯的順風。

Thank you. And we look forward to talking to you all soon.

謝謝。我們期待盡快與大家交談。

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。