Douglas Dynamics Inc (PLOW) 2024 Q3 法說會逐字稿

Good day and welcome to the Douglas Dynamics third quarter, 2024 earnings conference call. (Operator instructions)

美好的一天，歡迎參加 Douglas Dynamics 2024 年第三季財報電話會議。（操作員說明）

I would now like to turn the conference over to Nathan Elwell VP of Investor relations. Please go ahead.

我現在想將會議交給投資者關係副總裁內森·埃爾韋爾 (Nathan Elwell)。請繼續。

Thank you, Nick. 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.

謝謝你，尼克。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。

These forward-looking statements are subject to risks that could cause actual results to be materially different.

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。

Those risks include among others matters that we have described in yesterday's press release and in our filings with the SEC.

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描述的其他事項。

Joining me on the call today is Jim Jannick Chairman and interim President and CEO Sarah Lauber Executive Vice President of the CFO and Mark Van Garen, Chief Operating Officer and President of work truck attachments.

今天與我一起參加電話會議的還有董事長兼臨時總裁兼執行長 Sarah Lauber、財務長執行副總裁 Jim Jannick 和營運長兼工作卡車屬具總裁 Mark Van Garen。

Jim will provide an overview of our performance followed by Sarah reviewing our financial results and guidance.

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。

After that, we'll open the call for questions with that. I'll hand the call over to Jim. Please go ahead.

之後，我們將開始就此問題進行提問。我會把電話轉給吉姆。請繼續。

Thank you, Nathan Douglas Dynamics has a 75 year history of adapting and improving our operations for our attachment segment. This has been a year of adapting to very unusual weather conditions that we've seen for a solution segment. It has been a year of delivering improvements following the challenging work put in over the past few years that is now paying off.

謝謝，Nathan Douglas Dynamics 在調整和改進我們的附件業務運營方面擁有 75 年的歷史。今年是解決方案領域適應非常不尋常天氣條件的一年。在過去幾年中投入的富有挑戰性的工作現已得到回報之後，這是實現改進的一年。

This was a positive quarter for the company and I'm very impressed with the operational improvements that have been made.

對於公司來說，這是一個積極的季度，我對所取得的營運改善印象深刻。

I want to recognize the dedication and resilience of our team which continually allows us to maximize our potential in all market conditions.

我想表彰我們團隊的奉獻精神和韌性，這使我們能夠在所有市場條件下不斷發揮最大潛力。

With that said, let's talk about what's happened, what happened in the third quarter.

說到這裡，我們來談談發生了什麼，第三季發生了什麼。

First, we saw an impressive performance from work truck Solutions which is becoming a very nice trend.

首先，我們看到工作卡車解決方案的令人印象深刻的表現，這正在成為一個非常好的趨勢。

Our Henderson operations are outperforming expectations this year helping to drive record double digit adjusted EBITDA margins for the quarter in solutions.

我們的亨德森業務今年的表現超出了預期，有助於推動本季解決方案的調整後 EBITDA 利潤率創紀錄的兩位數。

Second, our results at work truck attachments were more or less in line with our expectations.

其次，我們在工作卡車附件上的結果或多或少符合我們的預期。

The other key factor this quarter was the 2024 cost savings program.

本季的另一個關鍵因素是 2024 年成本節約計畫。

As you may remember earlier this year, the team made difficult decisions to align our cost structure and attachments and our corporate team. In light of the demand outlook, the actions taken mean that attachments is well positioned to succeed over the medium to long term in all market conditions.

您可能還記得今年早些時候，團隊做出了艱難的決定，以調整我們的成本結構和配件以及我們的公司團隊。鑑於需求前景，所採取的行動意味著附件在所有市場條件下都能夠在中長期內取得成功。

The program was implemented in the first quarter and expanded in the second quarter and is expected to deliver $11 to $12 million in sustainable annualized savings starting next year.

該計劃於第一季實施，並於第二季擴大，預計從明年開始可實現 1,100 至 1,200 萬美元的可持續年化節省。

Importantly, we remain on pace to deliver $9 million of savings this year.

重要的是，我們今年仍將節省 900 萬美元。

Now turning to results in each segment starting with attachments. As we noted preseason orders were softer than previous years with demand continuing to be impacted by two years in a row of significantly below average snowfall in our core markets, particularly on the east coast.

現在轉向從附件開始的每個部分的結果。正如我們所指出的，季前訂單比往年疲軟，需求繼續受到核心市場（尤其是東海岸）連續兩年明顯低於平均降雪量的影響。

However, taken as a whole, our preseason results were slightly below our overall predictions.

然而，總體而言，我們的季前賽結果略低於我們的整體預測。

The ratio of preseason shipments in 2024 came in at 65 to 35 split between the 2nd and 3rd quarters rather than the more traditional 5,545.

2024 年季前賽第二季和第三季的出貨量比例為 65:35，而非傳統的 5,545。

The lengthening equipment cycle replacement cycle will continue to be a near term factor and we will carefully track retail activity and dealer inventory trends.

設備更換週期的延長將繼續成為近期因素，我們將仔細追蹤零售活動和經銷商庫存趨勢。

Margins were also impacted by the mix of products this quarter. With more of our most profitable products being shipped in the second quarter this year.

本季的產品組合也影響了利潤率。我們更多最賺錢的產品將在今年第二季出貨。

It's important to point out that the 2024 cost savings program has really helped preserve profitability.

需要指出的是，2024 年成本節約計畫確實有助於保持獲利能力。

In fact, our adjusted EBITDA margins are a respectable 19.5% on a year-to-date basis.

事實上，年初至今我們調整後的 EBITDA 利潤率為 19.5%，相當可觀。

Rest assured we are talking with our dealers and monitoring order patterns and we'll be ready to ramp up production if needed as we work through the elongated equipment replacement cycle.

請放心，我們正在與經銷商交談並監控訂單模式，並且在我們完成延長的設備更換週期時，如果需要，我們將準備好提高產量。

Our recent dealer checks indicate inventory levels continue to come down but remain elevated and less than ideal compared to previous years. Also reorder activity at the end of the third quarter was lower than expected.

我們最近對經銷商的檢查顯示庫存水準持續下降，但與前幾年相比仍處於較高水準且不太理想。第三季末的再訂購活動也低於預期。

While these reorder numbers in September are relatively small. They are directionally important as we head into the retail season for snow and ice control equipment.

雖然 9 月的再訂購數量相對較少。當我們進入冰雪控制設備的零售季節時，它們具有重要的方向性。

The financial health of our dealer network remains strong, and the sentiment is positive under the circumstances while it's been longer than we like, we know that the impact of low snowfall is temporary, and we have adjusted our operations to match today's market conditions.

我們的經銷商網路的財務狀況依然強勁，在這種情況下，情緒是積極的，雖然時間比我們想像的要長，但我們知道低降雪量的影響是暫時的，我們已經調整了我們的運營以適應當今的市場狀況。

We will continue to prudently invest in upgrading our manufacturing capabilities in 2025 and beyond to maintain our operational competitive advantages.

我們將在2025年及以後繼續審慎投資升級我們的製造能力，以維持我們的營運競爭優勢。

As we enter winter, we are ready for whatever Mother nature throws at us and we'll use our continuous improvement mindset to adjust as the snow season progresses.

當我們進入冬季時，我們已經準備好應對大自然為我們帶來的一切，我們將利用持續改進的心態隨著雪季的進展進行調整。

Okay, let's talk about work truck solutions. I'm pleased to confirm that the J and Henderson teams delivered record third quarter results, the profitability shown this quarter exceeded our internal expectations and volumes were down slightly but the improved efficiency. Plus, the price realization was the primary driver of record results.

好的，我們來談談工作卡車解決方案。我很高興地確認，J 和 Henderson 團隊交付了創紀錄的第三季度業績，本季度顯示的盈利能力超出了我們的內部預期，銷量略有下降，但效率有所提高。此外，價格實現是創紀錄業績的主要驅動力。

Performance was also strong on a year-to-date basis with adjusted EBITDA margins more than doubling to 9.5% when compared to the previous year.

今年迄今的業績也很強勁，調整後的 EBITDA 利潤率比前一年翻了一倍多，達到 9.5%。

This performance demonstrates that our long term goals are very achievable. When external circumstances allow.

這一表現表明我們的長期目標是可以實現的。當外部環境允許的時候。

At Dejana, the team continues to focus more of their attention on the fleet business where the supply of chassis is currently the strongest. Some customers are less urgent about their buying decisions today and more price conscious with some signs of softening demand for certain products, we believe there is an impact from high interest rates and some local market customers are hesitating with their spending decisions due to the upcoming election.

在Dejana，團隊繼續將更多注意力集中在目前底盤供應最強勁的車隊業務上。一些客戶對今天的購買決定不那麼緊迫，並且對價格更加敏感，有一些跡象表明某些產品的需求疲軟，我們認為這是高利率的影響，並且由於即將到來的選舉，一些本地市場客戶對他們的支出決定猶豫不決。

However, in other areas, demand remains generally stable and we're working to position ourselves to drive sustainable long term growth.

然而，在其他領域，需求整體保持穩定，我們正在努力推動可持續的長期成長。

For example, we're just starting to see the positive impact of the infrastructure bills with interest in sectors related to utilities, sewage and waste as well as telecom.

例如，我們剛開始看到基礎設施法案的正面影響，對公用事業、污水和廢棄物以及電信相關產業產生興趣。

While the situation isn't perfect, chassis availability has improved, especially for fleet customers and we're starting to eat into our backlog. A little bit more at Henderson. The team is having a great year and we're well on its path to long term profitability goals, chassis and component supply are more closely aligned with our needs and stable supply of labor coupled with our operational improvements of recent years are delivering stronger results.

雖然情況並不完美，但底盤可用性有所改善，特別是對於車隊客戶而言，我們正在開始處理我們的積壓訂單。亨德森還有一點。團隊度過了美好的一年，我們正在朝著長期盈利目標邁進，底盤和零件供應更加符合我們的需求，穩定的勞動力供應加上我們近年來的營運改善正在帶來更強勁的業績。

Municipal demand remains positive and the backlog remains much higher than historical levels.

市政需求依然樂觀，積壓仍遠高於歷史水準。

We do believe some of our outperformance at Henderson this quarter was due to business mix and we predict some softness in the coming quarter overall. Our results at solution bode well for the future and it's important to remember that demand remains positive with municipal customers and most solid with commercial customers near term chassis supply is as good as we've seen in recent years.

我們確實相信，亨德森本季的出色表現部分是由於業務組合所致，我們預計下一季整體會出現一些疲軟。我們在解決方案上的結果對未來來說是個好兆頭，重要的是要記住，市政客戶的需求仍然樂觀，商業客戶的需求最為穩定，近期底盤供應與我們近年來看到的一樣好。

The improved chassis availability has helped our teams drive great efficiency which has led to improved profitability while we aren't counting on it. Market commentators are indicating that [ooem] production levels are increasing over the medium term from an operational standpoint, we executed effectively across the board and we still have a solid backlog to work through and in some parts of the business it is growing, we are on track to deliver on our goal of improved performance for the third straight year in solutions.

改進的底盤可用性幫助我們的團隊提高了效率，從而提高了盈利能力，而我們並不指望它。市場評論員表示，從營運的角度來看，[ooem] 生產水平在中期內正在增加，我們全面有效地執行，我們仍然有大量的積壓工作需要處理，並且在業務的某些部分它正在增長，我們正在有望實現連續第三年提高解決方案效能的目標。

So in summary, it's great to see solutions hit their stride this year and hats off to those teams for continuing to push forward.

總而言之，很高興看到解決方案今年取得了長足的進步，並向那些繼續推進的團隊致敬。

We've seen in recent years that the diversity of our operations has helped us to manage through tough times as one segment has performed well while the other was impacted by market conditions after the turbulent conditions we faced in recent years with various unpredictable external headwinds. We believe the years ahead will produce more stable conditions that will allow us to deliver on our potential we will continue to manage through the short-term challenges while investing in long term future to ensure we remain the clear leader in our markets.

近年來，我們看到，業務的多元化幫助我們度過了艱難時期，因為近年來我們面臨各種不可預測的外部逆風的動盪局勢，一個部門表現良好，而另一個部門則受到市場狀況的影響。我們相信，未來幾年將創造更穩定的條件，使我們能夠發揮我們的潛力，我們將繼續應對短期挑戰，同時投資於長期未來，以確保我們仍然是市場上明顯的領導者。

Okay. Before I hand the call over to Sarah, I wanted to discuss our leadership team.

好的。在將電話轉交給莎拉之前，我想先討論一下我們的領導團隊。

We have a terrific group of people in place today and we recently announced a few changes in our senior team promoting the next generation of leaders. As Nathan mentioned, we have Mark Van Gmre on the call with us today. Mark was recently promoted to Chief Operating Officer of Douglas Dynamics.

今天，我們擁有一群出色的人員，最近我們也宣布了高階團隊的一些變動，以促進下一代領導者的發展。正如內森所提到的，馬克·範·格姆雷今天與我們通話。馬克最近被提升為道格拉斯動力公司的營運長。

Since he joined Douglas four years ago, he's established himself as an important leader within our organization and in his new role, he will be overseeing both attachments and solutions.

自從四年前加入道格拉斯以來，他已成為我們組織內的重要領導者，在他的新角色中，他將負責監督附件和解決方案。

Mark has a broad operational background and demonstrated sales and marketing expertise. And most importantly, he shares our values and is a great fit with our culture. I look forward to working with him and Sarah as we lead the company into 2025.

馬克擁有廣泛的營運背景以及出色的銷售和行銷專業知識。最重要的是，他認同我們的價值觀，非常適合我們的文化。我期待與他和莎拉合作，帶領公司邁向 2025 年。

Also, our chief human resource officer, Linda Evans is retiring at the end of the year as planned after 16 years at Douglas. Linda has played a pivotal role in many aspects of the company's growth. She has helped shape our culture and her passion and enthusiasm will be greatly missed by all.

此外，我們的首席人力資源長琳達·埃文斯 (Linda Evans) 在道格拉斯工作了 16 年後，將於今年年底按計劃退休。琳達在公司發展的許多方面發揮了關鍵作用。她幫助塑造了我們的文化，所有人都將深深懷念她的熱情和熱情。

A silver lining to Linda. Retiring is the strength of her successor, Shannon Fleger who Linda has been mentoring her dynamic leadership will prove important to our success in the years ahead.

琳達的一線希望。退休是她的繼任者香農·弗萊格（Shannon Fleger）的優勢，琳達一直在指導香農·弗萊格的充滿活力的領導力，這對我們未來幾年的成功至關重要。

Finally, I've been back in the CEO role for five months now, I'm in Milwaukee and I stay committed to stay on as interim CEO into 2025. The primary objective of the CEO search process is to take the time to ensure we appoint the right person. Our intention is to have a new CEO in place in the first half of 2025.

最後，我已經重新擔任執行長一職五個月了，我在密爾瓦基，我將繼續擔任臨時執行長直至 2025 年。執行長搜尋流程的主要目標是花時間確保我們任命合適的人選。我們的目標是在 2025 年上半年任命新執行長。

With that, I'll pass the call on to Sarah.

這樣，我會將電話轉給莎拉。

Thank you, Jim. The explanation of our performance. This quarter is relatively straightforward. The attachment segment results were a little softer than our expectations as we managed through the elongated replacement cycle. But this was helped by the solution segment which delivered a record third quarter performance and exceeded our expectations with a significant improvement in profitability.

謝謝你，吉姆。對我們表現的解釋。本季相對簡單。由於我們設法度過了延長的更換週期，因此附件部分的結果比我們的預期要軟一些。但這得益於解決方案部門，該部門實現了創紀錄的第三季度業績，並超出了我們的預期，盈利能力顯著提高。

Of course, the sale lease back has made things look more complex. At first glance, as you probably saw we completed the sale leaseback transaction in September which delivered growth proceeds of $64.2 million cash taxes for the deal were $12.7 million with transaction expenses of $5.3 million.

當然，售後回租讓事情看起來更加複雜。乍一看，正如您可能看到的那樣，我們在9 月完成了售後回租交易，該交易帶來了6420 萬美元的增長收益，該交易的現金稅為1270 萬美元，交易費用為530 萬美元。

$42 million of the proceeds were used to pay down our term loan debt, which in turn gives us more flexibility and allows us to better support our long-term growth plan.

其中 4,200 萬美元的收益用於償還我們的定期貸款債務，這反過來又為我們提供了更大的靈活性，使我們能夠更好地支持我們的長期成長計畫。

The incremental rent expense we now have when weighted against the lower interest expense. Following the debt paydown will have an insignificant impact on our earnings per share on an annual basis.

我們現在的增量租金費用與較低的利息費用相權重。債務償還後對我們的年度每股收益影響不大。

The transaction was a great way to optimize our balance sheet and ensures we are well positioned to make investments in the business.

此次交易是優化我們資產負債表的好方法，並確保我們處於有利位置進行業務投資。

The transaction included seven facilities with 780,000 square feet of manufacturing and upfitting space and the initial leases are for 15 years with two 10-year options to renew all seven facilities are critical for operations and these long-term leases reinforce our commitment to continue operating in these communities for decades to come with. That said, let's turn to the quarter.

該交易包括七個設施，擁有780,000 平方英尺的製造和裝修空間，初始租賃期為15 年，並​​有兩個10 年期續訂選擇權，所有七個設施對於營運至關重要，這些長期租賃強化了我們繼續在這些社區將持續數十年。也就是說，讓我們轉向本季。

Although demand and attachments was lower. This quarter, profitability remains flat based on the strong bottom-line performance of solutions and the impact of the 2024 cost savings program on a consolidated basis our third quarter net sales were $129.4 million compared to $144.1 million in the same period. Last year, gross profit declined slightly to $30.9 million but gross profit margin increased 160 basis points to 23.9%. Based on higher price realization the 2024 cost savings program and improved performance at solutions SG&A expenses were $20.4 million for the quarter excluding sale leaseback transaction costs of $5.3 million.

儘管需求和附件較低。由於解決方案強勁的底線表現以及 2024 年成本節約計畫的影響，本季獲利能力保持平穩。去年，毛利小幅下降至 3,090 萬美元，但毛利率卻增加了 160 個基點，達到 23.9%。基於 2024 年成本節約計畫的更高價格實現和解決方案績效的提高，本季的銷售、行政管理費用為 2,040 萬美元，不包括 530 萬美元的售後回租交易成本。

This compares to the $18 million recorded in third quarter, 2023. The remaining increase of $2.4 million is primarily related to CEO transition costs and higher incentive-based compensation.

相比之下，2023 年第三季的營收為 1,800 萬美元。剩餘的 240 萬美元成長主要與 CEO 過渡成本和更高的激勵薪酬有關。

As a reminder, the 2024 cost savings program is expected to deliver $11 to $12 million in sustainable annualized savings. Approximately $9 million of which is on track to be realized in 2024. Interest expense was $4.5 million in line with the $4.6 million reported last year.

需要提醒的是，2024 年成本節約計畫預計將實現可持續的年度節省 1,100 至 1,200 萬美元。其中約 900 萬美元預計將於 2024 年實現。利息支出為 450 萬美元，與去年報告的 460 萬美元一致。

The effective tax rate was 22.7% for the third quarter of 2024 compared to 16.4% in the same period last year, which was impacted by a tax benefit related to the purchase of investment tax.

2024年第三季的有效稅率為22.7%，而去年同期為16.4%，這是受到與購買投資稅相關的稅收優惠的影響。

GAAP net income for the second quarter for the third quarter, I'm sorry was $32.3 million or a $36 per diluted share adjusted net income for the quarter was $5.9 million in line with the $6 million for the third quarter of 2023 adjusted EBITDA decreased to $15.3 million when compared to $17.3 million. For the third quarter of last year.

抱歉，第三季第二季GAAP 淨利為3,230 萬美元，即稀釋後每股收益36 美元，調整後本季淨利為590 萬美元，與2023 年第三季600 萬美元一致，調整後EBITDA下降至1,530 萬美元，去年同期為 1,730 萬美元。去年第三季。

The decreases were driven by lower attachment volume, partially offset by price realization and improved efficiencies at solution.

下降的原因是附件數量減少，部分被價格實現和解決方案效率提高所抵消。

Now, let's look at each segment in more detail, starting with attachments where we continue to be impacted by the two previous winters of significantly below average snowfall in our core market which has created an elongated equipment replacement cycle and led to lower order volume net sales $16.2 million for the quarter, slightly lower than expected based on lower reorder volumes in September and products product mix which produced adjusted EBITDA of $8.1 million as we expected the ratio of preseason shipments this year was 65 to 35 between the 2nd and 3rd quarters. That's similar to last year, but more skewed towards the second quarter than our long term average, which is closer to 55 to 45.

現在，讓我們更詳細地了解每個細分市場，從附件開始，我們繼續受到前兩個冬天核心市場降雪量明顯低於平均水平的影響，這導致設備更換週期延長，並導致訂單量淨銷售額下降本季營收為1,620 萬美元，略低於預期，因為9 月份的再訂購量較低，而且產品組合產生的調整後EBITDA 為810 萬美元，因為我們預計今年第二季和第三季度季前出貨量比率為65 比35。這與去年類似，但比我們的長期平均值（接近 55 到 45）更傾向於第二季。

The 2024 cost savings program has helped preserve profitability with adjusted EBITDA margins close to 20% on a year-to-date basis in line with our expectations, turning to solutions which delivered record third quarter sales and earnings as we continue to make progress towards our growth and profitability goals.

2024 年成本節約計畫幫助維持了獲利能力，調整後的EBITDA 利潤率年初至今接近20%，符合我們的預期，隨著我們繼續朝著我們的目標取得進展，我們轉向了實現第三季度銷售和收益創紀錄的解決方案。

Net sales of $69.1 million were slightly higher than last year with lower volumes offset by higher price realization adjusted EBITDA increased 44% to $7.2 million with margins of 10.4%. A 310-basis point improvement.

淨銷售額為 6,910 萬美元，略高於去年，銷量下降被價格實現調整後的 EBITDA 上漲所抵消，增長了 44%，達到 720 萬美元，利潤率為 10.4%。提高了 310 個基點。

The profitability shown this quarter exceeded our expectations based on price realization and improved efficiencies led by Henderson results were also strong on a year-to-date basis with adjusted EBITDA margins more than doubling to 9.5% when compared to the previous year.

本季顯示的獲利能力超出了我們基於價格實現的預期，且亨德森業績帶來的效率提高也很強勁，調整後的 EBITDA 利潤率比上一年增加了一倍多，達到 9.5%。

However, I want to be clear while the progress we've seen this year is excellent. We do not expect the improvements to be linear going forward between business mix and the timing of deliveries plus the profitability of certain contracts. Our overall results will continue to fluctuate from quarter to quarter, but we expect to show annual improvement in EBITDA for the 3rd year in a row.

然而，我想澄清的是，我們今年所取得的進展非常出色。我們預期業務組合、交付時間以及某些合約的獲利能力之間的改善不會是線性的。我們的整體業績將繼續隨季度波動，但我們預計 EBITDA 將連續第三年實現年度改善。

In fact, we're now on track to del to deliver high single digit adjusted EBITDA margins in the segment for the year.

事實上，我們現在正朝著今年該細分市場實現高個位數調整後 EBITDA 利潤率的目標邁進。

Now let's look at our balance sheet and liquidity.

現在讓我們來看看我們的資產負債表和流動性。

As of September 30th, we had $90.9 million of total liquidity comprised of $8.4 million in cash and cash equivalent and $82.5 million of borrowing availability under our revolving credit facility on a year-to-date basis versus 2023 net cash used in operating activities improved $30.9 million and free cash flow improved $34.6 million from net negative $71.9 million to negative $37.3 million.

截至9 月30 日，年初至今，我們的流動性總額為9,090 萬美元，其中包括840 萬美元的現金和現金等價物，以及循環信貸安排下的8,250 萬美元的可用借款，較2023 年經營活動使用的淨現金增加了30.9 美元百萬美元，自由現金流從淨負 7,190 萬美元增加到負 3,730 萬美元，增加了 3,460 萬美元。

The improvement relates to favourable changes in working capital including decreases in cash due and accounts payable accounts receivable and inventory proceeds from the sale leaseback transaction favourably impacted cash provided by investing activities by $64.2 million.

這項改善與營運資本的有利變化有關，包括到期現金和應付帳款、應收帳款和售後回租交易的庫存收益的減少，對投資活動提供的現金產生了 6,420 萬美元的有利影響。

As I mentioned earlier, proceeds of $42 million were used to voluntarily prepay long term debt.

正如我之前提到的，4,200 萬美元的收益用於自願提前償還長期債務。

This means our leverage ratio at the end of the quarter was 2.6 times which is well within our targeted range of 1.5 to 3 times inventories were and $45.4 million at the end of the quarter, slightly lower than the $147.2 million in the third quarter of 2023 accounts receivable at the end of the quarter were $153.1 million lower than the $165.3 million in the same point last year, year-to-date capital expenditures of approximately $4 million were significantly lower than the $7.7 million in the same period last year. And based on the year-to-date numbers, we expect CapEx for the year will be below the low end of our target. Typical range of 2 to 3% of net sales.

這意味著我們季度末的槓桿率為 2.6 倍，完全在我們庫存 1.5 至 3 倍的目標範圍內，季度末為 4540 萬美元，略低於 2023 年第三季度的 1.472 億美元本季末的應收帳款比去年同期的1.653 億美元減少了1.531 億美元，年初至今的資本支出約為400 萬美元，大大低於去年同期的770 萬美元。根據今年迄今的數據，我們預計今年的資本支出將低於我們目標的下限。通常為淨銷售額的 2% 至 3%。

We paid our quarterly cash dividend of $29.5 per share at the end of the quarter and the dividend remains our top priority.

我們在季度末支付了每股 29.5 美元的季度現金股息，股息仍然是我們的首要任務。

Let's turn to the outlook for the end of the year.

讓我們來看看年底的展望。

As I mentioned, the excellent recent performance at Solutions means they're poised to deliver improved full year results for the 3rd year in a row. Albeit we have a tougher comparison at Solutions for the fourth quarter and we expect attachment shipments to remain constrained due to the elongated replacement cycle.

正如我所提到的，解決方案最近的出色表現意味著他們準備好連續第三年改善全年業績。儘管我們對第四季度的解決方案進行了更嚴格的比較，但由於更換週期延長，我們預計附件出貨量仍將受到限制。

We are planning for average snowfall in the fourth quarter and as always, we will be closely monitoring reorders as dealers continue to lower their inventory to more traditional levels.

我們計劃第四季度的平均降雪量，隨著經銷商繼續將庫存降低到更傳統的水平，我們將一如既往地密切監控重新訂購情況。

With that in mind, we're lowering our net sales guidance and reducing the top end of the adjusted EBITDA and adjusted EBITDA margin ranges as follows.

考慮到這一點，我們將降低淨銷售額指導，並降低調整後 EBITDA 和調整後 EBITDA 利潤率範圍的上限，如下所示。

Net sales are now expected to be between $570 and $600 million versus the previous range of $600 to $640 million adjusted EBITDA is now predicted to range from $70 million to $80 million. Versus the previous range of $70 to $90 million adjusted earnings per share is now expected to be in the range of a $1.20 per share to a $1.60 per share versus the previous range of a $20 to a $70.

目前預計淨銷售額將在 5.7 至 6 億美元之間，而先前的範圍為 6 億至 6.4 億美元，調整後的 EBITDA 現在預計為 7,000 萬至 8,000 萬美元。之前的範圍為 7,000 至 9,000 萬美元，調整後每股收益現在預計為每股 1.20 美元至 1.60 美元，而之前的範圍為 20 至 70 美元。

The effective tax rate is expected to be approximately 24% to 25%. And as always, our outlook assumes relatively stable economic conditions, the stable supply of chassis and components and that our core markets will experience average snowfall in the fourth quarter of this year.

有效稅率預計約為24%至25%。與往常一樣，我們的展望假設經濟狀況相對穩定，底盤和零件供應穩定，並且我們的核心市場今年第四季將經歷平均降雪量。

From an operational standpoint, we executed effectively across the company this quarter and external conditions improve. We are in a great position to leverage our operations and drive long term earnings power.

從營運角度來看，本季我們在整個公司範圍內有效執行，外部條件有所改善。我們處於有利地位，可以充分利用我們的業務並推動長期獲利能力。

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

至此，我們想開始提問。

We will now begin the question-and-answer session to ask a question. (Operator instructions)

我們現在將開始問答環節來提出問題。（操作員說明）

And our first question today comes from Michael Shlisky of D A Davidson. Please go ahead.

今天我們的第一個問題來自 D A Davidson 的 Michael Shlisky。請繼續。

Hi. Good morning. This is Linda Wiley on for Mey.

你好。早安.這是梅伊的琳達威利。

Thank you for letting us ask questions. So, my first question for you is on the attachment segment. Can you update us on your off-highway attachment business? Such as your wheel Lauder and tractor-based product. Has this meaningfully contributed to growth in 2024?

感謝您讓我們提問。因此，我向您提出的第一個問題是關於附件部分的。您能為我們介紹一下您的非公路附屬設備業務的最新情況嗎？例如您的車輪勞德和拖拉機產品。這對 2024 年的成長做出了有意義的貢獻嗎？

Let me make sure that I understand your question. You're talking about the non-truck market.

讓我確保我理解你的問題。你說的是非卡車市場。

Is that accurate?

準確嗎？

Yes. So, it's the off-highway attachment.

是的。所以，這是非公路附件。

So, like the wheel orders-based products. Yeah.

所以，喜歡輪子訂單為主的產品。是的。

Yeah, they could they continue to have a very nice spot in the market. I would say the some of the newer products are having some impact, but at this particular point, it's not material, but as we get into 2025 and beyond, we expect them to have a very good role within our profitability and our marketplace.

是的，他們可以繼續在市場上佔據一個非常好的位置。我想說，一些較新的產品正在產生一些影響，但在這個特定的時刻，這並不重要，但隨著我們進入2025 年及以後，我們預計它們將在我們的盈利能力和市場中發揮非常好的作用。

Yeah, I can add a little bit of color to that. So, for the for the third quarter, we were relatively flat when you look at non truck, non-truck sales for the year, we, we are down similar to what we're down in in preseason. So, it just kind of followed the trend. And non truck sales still represent less than 5% but it is a large growing segment for us in attachment.

是的，我可以為此添加一點顏色。因此，對於第三季度，當你看看今年的非卡車、非卡車銷售時，我們相對持平，我們的下降情況與季前賽的情況類似。所以，它只是順應了趨勢。非卡車銷量仍佔不到 5%，但對我們來說，這是一個不斷成長的細分市場。

And this is Mark. I would add that from a product development standpoint. Some of the products that we brought to market over the last year, 18 months, you know, are really starting to get into the groove right now. I was down in, Louisville at a big show three weeks ago and our, our pusher plows, the big ones that go on, skid Sears and front-end loaders. It's getting a lot of attention. It's got some great features. So, we're pretty excited about that product in the future.

這是馬克。我想從產品開發的角度補充這一點。你知道，我們去年 18 個月推向市場的一些產品現在確實開始進入最佳狀態。三週前，我在路易斯維爾參加了一場大型展會，我們的推犁，大型犁，滑移西爾斯和前端裝載機。它受到了很多關注。它有一些很棒的功能。所以，我們對未來的產品感到非常興奮。

Oh, great. That's great color. Thank you. And then, my next question would be, can you detail for us, what you're doing for your dealers to help them until the winter starts? Are you offering, to move, inventories around to the dealers or even take back inventories that they ask for it?

哦，太好了。那顏色真棒。謝謝。然後，我的下一個問題是，您能否為我們詳細介紹一下，您正在為經銷商做些什麼來幫助他們直到冬天開始？您是否向經銷商提供、轉移庫存，甚至收回他們要求的庫存？

Yeah, this is Jim. I think for the, for the dealers, most of them are, are typically have the equipment that they need. They're just waiting for the snow season to come around. It's not a mix issue for most of our dealers. It's a demand issue. So, moving inventory around is, it's a nice thought, but it doesn't add a lot of value or relief to any of our dealers. We do feel as if with, you know, any decent snow this coming year. Inventory is going to be normalized by 2025.

是的，這是吉姆。我認為對於經銷商來說，他們中的大多數通常都擁有他們需要的設備。他們只是在等待雪季的到來。對於我們大多數經銷商來說，這不是一個混合問題。這是一個需求問題。因此，轉移庫存是一個不錯的想法，但它並沒有為我們的任何經銷商增加太多價值或緩解壓力。你知道，我們確實感覺明年會有像樣的雪。庫存將於 2025 年正常化。

Got it. Thank you for your time.

知道了。感謝您抽出時間。

Thank you.

謝謝。

And our next question today comes from Tim Wise with bared. Please go ahead.

今天我們的下一個問題來自 Tim Wise 和 Bared。請繼續。

Hey, everybody. Good morning.

嘿，大家。早安.

Hey, maybe just in the attachment segment. I guess you're expecting to have average snowfall in December, but I guess what is your expectation for reorder activity relative to average snowfall? I guess is that, are you expecting reorders to be normal or are you still expecting to see, you know, weaker reorders just as you know, your dealer's kind of start to flush inventory for any sort of kind of initial?

嘿，也許只是在附件部分。我猜您預計 12 月的降雪量為平均水平，但我猜您對相對於平均降雪量的重新訂購活動的預期是多少？我想，您是否期望重新訂購是正常的，或者您是否仍然希望看到，您知道，重新訂購較弱，正如您所知道的那樣，您的經銷商開始為任何類型的初始庫存清理庫存？

I think Tim, you've hit the nail on the head. You, your comment is that with some elevated levels of inventory, many of the dealers will work down that inventory as they see retail activity and probably, we won't see retail or reorder activity as you might otherwise see just because they're working down that inventory. So, you know, I think your point is a good one is they're going to work down the inventory first and then reorder. So, with average snowfall, we expect reorders to be as we've, we've indicated here. It probably be a little softer than, than we would normally expect under the circumstances.

我想提姆，你說得一針見血。您，您的評論是，隨著庫存水準的升高，許多經銷商會在看到零售活動時減少庫存，並且可能我們不會看到零售或重新訂購活動，而您可能會看到，因為他們正在工作減少庫存。所以，我認為你的觀點很好，他們將首先減少庫存，然後重新訂購。因此，在平均降雪量的情況下，我們預計重新訂購量將與我們在此指出的相同。它可能比我們在這種情況下通常預期的要軟一些。

Yeah, our guidance has been fine even though we, we talk about average, snowball expected for now for a couple quarters, we, we don't expect that to equate to average volume. So that's been embedded in our fourth quarter the way we're the way we're thinking about it.

是的，我們的指導一直很好，儘管我們談論的是平均水平，預計未來幾季會像滾雪球一樣，我們預計這不會等於平均數量。因此，這已融入我們第四季的思考方式。

Okay, Good. That's, that's helpful. And then I guess from a production standpoint, I mean, you, you've always been, you've always kind of heralded your ability to kind of react very quickly to changes in, in season demand. I mean, with the cost savings that you've kind of kind of run through the organization, I mean, has anything changed from a production standpoint that would hurt your ability to react to demand if it was better than expected?

好的，很好。那就是，這很有幫助。然後我想從生產的角度來看，我的意思是，你，你一直都是，你總是預示著你有能力對季節需求的變化做出快速反應。我的意思是，透過您在整個組織中進行的成本節約，我的意思是，從生產的角度來看，是否有任何變化會損害您對需求做出反應的能力（如果需求比預期更好） ？

And this is Mark, I can take that one. I would say we're this year in particular, we've improved our ability to react accordingly, and we know that the last 18 months with the snowfall in the last couple of years have been atypical. So as a result, we've really looked at operations across all of our facilities and if they improved our overall flexibility from a production standpoint, whether that means bringing it down to make sure that internal inventories are in line as we match those against dealer inventories. And at the same time, if we need to ramp up. So, we're in a pretty good spot right now, I think.

這是馬克，我可以接受那個。我想說的是，今年尤其如此，我們提高了相應反應的能力，我們知道過去 18 個月的降雪和過去幾年的降雪情況不同尋常。因此，我們確實審視了我們所有設施的運營，以及它們是否從生產的角度提高了我們的整體靈活性，這是否意味著降低它以確保內部庫存與我們與經銷商的庫存相匹配庫存。同時，如果我們需要加大力度。所以，我認為我們現在處於一個非常好的位置。

Okay, good. And then just on solutions could I guess I was surprised that volume was down in the quarter. Just I guess I thought you guys still had a fair amount of backlog to work through. So, I guess is there a way to kind of break out price versus volume and then just kind of update us on where the backlog is? Because I guess the top line seems a little more variable now relative to maybe the backlog driven demand we've seen in the last couple Quarters.

好的，很好。然後就解決方案而言，我猜我對本季銷量下降感到驚訝。只是我想我認為你們還有相當多的積壓工作要處理。所以，我想有沒有一種方法可以打破價格與數量的關係，然後向我們通報積壓訂單的最新情況？因為我猜想相對於我們在過去幾季看到的積壓驅動的需求，現在的收入似乎有點變化。

Yeah. So, it really is kind of a tale of two cities here when you look at the two businesses. So, the price for the quarter for solutions is really in the low single digits and the volume, it's up a little bit at Henderson. But, but more of the volume decline has been at the Jana.

是的。所以，當你看看這兩家企業時，這確實是兩個城市的故事。因此，本季解決方案的價格確實處於較低的個位數，而亨德森的銷量則略有上升。但是，Jana 的銷售量下降幅度更大。

When you look at the backlog in total, our backlog is up still from the end of last year. But we saw [Diana] kind of eat into some of their backlog and Henderson's backlog has grown, I would say on the [Diana] side, we have experienced some softness that, that we talked to a bit in the script from the standpoint of order volumes in the quarter, we're seeing some of that come through in the third quarter.

當你查看總的積壓訂單時，我們的積壓訂單比去年年底仍然增加。但我們看到[戴安娜]有點吃掉了他們的一些積壓工作，而亨德森的積壓工作已經增加，我想說，在[戴安娜]方面，我們經歷了一些軟弱，我們在劇本中從以下角度進行了一些討論：本季的訂單量，我們看到其中一些在第三季實現。

Okay. And then I'm going to squeeze one last one in just what are your free cash flow expectations for? I guess the year in Q4.

好的。然後我要擠出最後一項，你的自由現金流預期是多少？我猜今年是第四季。

Yeah, our free cash flow, expectations don't change a lot from what we walked through last quarter other than the impact of the sale lease back. So, our, our cash taxes, will still be in that 24% to 25% effective tax rate. But that has kind of doubled because of the gain that we experienced on the sale lease back. And then we have experienced already in our results some positive flow through on working capital. So, I used to think working capital was flat for the year and now I expect that to be slightly favourable.

是的，除了售後回租的影響外，我們的自由現金流、預期與上季相比沒有太大變化。因此，我們的現金稅仍將採用 24% 至 25% 的有效稅率。但由於我們在售後回租方面獲得了收益，這一數字幾乎翻了一番。然後，我們已經在我們的業績中經歷了一些積極的營運資本流動。因此，我曾經認為今年的營運資金持平，現在我預計情況會稍微有利。

So, the total free cash flow for the year after the sale lease back with all of that will still will exceed our dividend model.

因此，售後回租後一年的自由現金流總額仍將超過我們的股利模型。

Okay. Great. Thanks for the time.

好的。偉大的。謝謝你的時間。

Thank you, Tim.

謝謝你，提姆。

And our next question today comes from Greg Burns with Sidoti and Co. Please go ahead.

今天我們的下一個問題來自 Greg Burns 和 Sidoti 等人。

Morning. Just to follow up on the Jana demand environment. What are you hearing or seeing in the market? Is it just maybe a pause because of election uncertainty or maybe some other short term drivers or is there anything maybe more structural where you're seeing demand. So, just trying to get a sense of, you know, where you feel that business might, might be in 25 if you expect that maybe a rebound as interest rates come down and we get past the election.

早晨。只是為了跟進 Jana 的需求環境。您在市場上聽到或看到什麼？這是否只是因為選舉的不確定性或其他短期驅動因素而暫停，或者是否有任何更具結構性的需求？所以，只是想了解一下，你知道，如果你預計隨著利率下降和選舉結束，業務可能會反彈，那麼你認為 25 年後業務可能會處於什麼位置。

Yeah. Terrific question. Thank you. Nick, it's we, I think, I think as we look at it, it's a little bit difficult to determine what specifically the impact of interest rates. And the election is, we know it has some impact and, and we're seeing it particularly in the local commercial businesses, you know, businesses like plumbing contractors, electrical contractors who are local to our businesses. I think they're just being very reluctant to pull the trigger on, on orders. And at this particular point, our hope is that it rebounds after the election and, you know, the impact of the reduction in interest rates starts to work through the channels. Overall, I think we're optimistic with the business. We're, we're also seeing more of a shift towards, we business and a little less of the, the local market business. So, there's some puts and takes and I think as we go into 2025, we're optimistic, but we're not entirely sure which of these factors are playing the greatest role.

是的。很棒的問題。謝謝。尼克，我認為是我們，我認為當我們審視它時，很難確定利率的具體影響是什麼。選舉是，我們知道它會產生一些影響，而且我們特別在當地的商業企業中看到了這種影響，你知道，像管道承包商、電氣承包商這樣的企業是我們企業的本地企業。我認為他們只是非常不願意按照命令扣動扳機。在這個特定的時刻，我們希望它在大選後反彈，而且你知道，降息的影響開始透過管道發揮作用。總的來說，我認為我們對業務持樂觀態度。我們也看到更多的業務轉向我們的業務，而本地市場業務的業務則減少。因此，有一些看跌和看跌，我認為當我們進入 2025 年時，我們很樂觀，但我們並不完全確定哪些因素發揮了最大的作用。

Okay, thanks. And then maybe in terms of expected cash generation in the fourth quarter and where you expect, you know, leverage to exit the year.

好的，謝謝。然後也許是第四季度的預期現金產生，以及您預計退出今年的槓桿率。

Yeah. So, we are at 2.6 times at the end of the third quarter and I expect that to continue to decline through the end of the year. And as you know, the fourth quarter is by far the highest free cash flow generating quarter for us. And I expect it to, to go strong to end strong.

是的。因此，第三季末我們的本益比為 2.6 倍，我預計該本益比將在年底繼續下降。如您所知，第四季度是我們迄今為止自由現金流量最高的季度。我希望它能夠堅強地結束。

Okay. And I know your kind of operating under expectations of normal snowfall. But if it is another year of below average snowfall, are there other do, do you have plans or maybe other measures, maybe in terms of further cost reductions or maybe, you know, other sale lease back, transactional opportunities, things like that, that can maybe help support the business if snowfall remains below average for this coming year.

好的。我知道你們是在正常降雪的預期下進行操作的。但是，如果又是降雪量低於平均水平的一年，是否還有其他措施，您是否有計劃或其他措施，也許是進一步降低成本，或者也許是其他售後回租、交易機會等，如果明年的降雪量仍低於平均水平，這可能有助於支持業務。

Yeah, when we put together the 2024 cost savings program, we really spent a lot of time on optimizing the business for the run rate that we've seen over the last several years. The sale lease back did the same with optimizing the balance sheet. I really feel like at this point in time, we have a runway of some lower snowfall from here and or higher snowfall from here. I think the business is well set to deliver depending on what the snow brings us. So, I guess my answer to that is at this point in time. No, not additional action.

是的，當我們制定 2024 年成本節約計畫時，我們確實花了很多時間來優化業務，以實現過去幾年的運作率。售後回租也起了同樣的作用，優化了資產負債表。我真的覺得在這個時間點，我們有一條跑道，從這裡開始降雪量較低，或者從這裡開始降雪量較高。我認為業務已經準備好交付，具體取決於雪給我們帶來的情況。所以，我想我的答案就是在這個時候。不，不是額外的行動。

Okay. Thank you

好的。謝謝

(Operator instructions) Seeing no further questions. This will conclude our question-and-answer session. I would like to turn the conference back over to Jim Janick, Chairman, interim President and CEO for any closing remarks.

（操作員說明）沒有看到更多問題。我們的問答環節到此結束。我想將會議轉回主席、臨時總裁兼執行長吉姆·賈尼克 (Jim Janick) 發表閉幕詞。

Thank you for your time today and going forward, our consistent focus on continuous improvement will help ensure we maximize the potential of any situation. We are faced with. Our attachments team is ready for winter and right sized for the current environment. If the weather cooperates and we see decent snowfall in the coming winters, we will be in a very good position to drive profits. Our solutions team is now reaping the benefits of efficiency improvements implemented in recent years.

感謝您今天抽出時間，展望未來，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。我們面臨著。我們的屬具團隊已做好冬季準備，其規模也適合當前環境。如果天氣配合，我們在即將到來的冬季看到像樣的降雪，我們將處於非常有利的位置來推動利潤。我們的解決方案團隊現在正在從近年來實施的效率改進中獲益。

And our company has a 75-year history of adapting and managing through uncertainty. And the only constraints are that the situations will rise, and change will occur.

我們公司擁有 75 年適應和管理不確定性的歷史。唯一的限制是情況會上升，改變會發生。

We know how to manage through both the short term and the long term and recent results show when headwinds subside, we deliver.

我們知道如何管理短期和長期，最近的結果表明，當逆風消退時，我們就能實現目標。

Thank you. And we look forward to seeing some of you at the VTT conference in Chicago on November 12th. Thank you.

謝謝。我們期待在 11 月 12 日於芝加哥舉行的 VTT 會議上見到你們。謝謝。

Conference is 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。