Powell Industries Inc (POWL) 2022 Q2 法說會逐字稿

Good morning, and welcome to the Powell Industries Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加鮑威爾工業公司的收益電話會議。 （操作員說明）請注意，正在記錄此事件。

I would like to turn the conference over to Ryan Coleman, Investors Relations. Thank you. You may begin.

我想將會議交給投資者關係部的 Ryan Coleman。謝謝。你可以開始了。

Thank you, and Good morning, everyone. Thank you for joining us for Powell Industries Conference Call today to review fiscal year 2022 second quarter results. With me on the call are Brett Cope, Powell's chairman and CEO, and Mike Metcalf, Powell's CFO. There will be a replay of today's call and it will be available via webcast by going to the company's website, powellind.com, or a telephonic replay will be available until May 11th. Information on how to access the replay is provided in yesterday's earnings release. Please note that the information reported on this call speaks only as of today, May 4th, 2022, and therefore, your advice of any time-sensitive information may no longer be accurate at the time of replay listening or transcript reading.

謝謝大家，大家早安。感謝您今天參加 Powell Industries 電話會議，回顧 2022 財年第二季業績。與我一起參加電話會議的有鮑威爾董事長兼執行長布雷特·科普 (Brett Cope) 和鮑威爾首席財務官邁克·梅特卡夫 (Mike Metcalf)。今天的電話會議將進行重播，您可以透過造訪公司網站 powellind.com 進行網路廣播，也可以在 5 月 11 日之前進行電話重播。昨天的財報中提供了有關如何存取重播的資訊。請注意，本次電話會議報告的資訊僅截至今天（2022 年 5 月 4 日），因此，您對任何時間敏感資訊的建議在重播或閱讀文字記錄時可能不再準確。

This conference call includes certain statements including statements related to the company's expectation of its future operating results that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties and that actual results may differ materially from those projected in these forward-looking statements.

本次電話會議包含某些聲明，其中包括與公司對其未來經營業績的預期相關的聲明，這些聲明可能被視為1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。請投資者註意，此類前瞻性聲明涉及風險和不確定性，實際結果可能與這些前瞻性陳述中的預測有重大差異。

These risks and uncertainties include but are not limited to competition and competitive pressures, sensitivity to general economic and industry conditions, international political and economic risks, availability and price of raw materials, and execution of business strategies. For more information, please refer to the company's filings with the Securities and Exchange Commission.

這些風險和不確定性包括但不限於競爭和競爭壓力、對總體經濟和行業狀況的敏感性、國際政治和經濟風險、原材料的可用性和價格以及業務策略的執行。欲了解更多信息，請參閱該公司向美國證券交易委員會提交的文件。

With that, I'll now turn the call over to Brett.

這樣，我現在將把電話轉給布雷特。

Thank you, Ryan, and Good morning, everyone. Thank you for joining us today to review Powell's fiscal 2022 second quarter results. I will make a few comments and then turn the call over to Mike for more financial commentary before we take your questions. Our results in the second quarter saw a strong sequential uptick in new order activity as well as year-over-year revenue growth of 8% as our customers and end markets continue to recover from the pandemic-induced downturn.

謝謝瑞安，大家早安。感謝您今天與我們一起回顧鮑威爾 2022 財年第二季的業績。在我們回答您的問題之前，我將發表一些評論，然後將電話轉給麥克以獲取更多財務評論。隨著我們的客戶和終端市場繼續從疫情引發的低迷中復甦，我們第二季的業績顯示新訂單活動強勁環比成長，營收年增 8%。

The $151 million of new orders for the second quarter marks 4 consecutive quarters of rising new order activity and is the highest quarter of new order intake activity since our second quarter of fiscal 2020. Our bookings performance led to a book-to-bill ratio of 1.2 times in the quarter, and it's the second consecutive quarter with a book-to-bill ratio above 1.

第二季新訂單量為 1.51 億美元，標誌著新訂單活動連續 4 個季度上升，也是自 2020 財年第二季以來新訂單量最高的季度。我們的預訂業績導致訂單出貨比為本季度為1.2 倍，這是連續第二季訂單出貨比超過1。

Our revenue of $128 million compares to $107 million in the prior quarter and is 8% higher than last year. Then our industrial markets. Revenue from our oil and gas sector increased year-over-year by 7% for the second straight quarter while the petrochemical sector increased by 85%, after growing by 88% versus the prior year in the first quarter of fiscal 2022. Year-to-date, revenue from our industrial markets is 21% higher than the comparable period in fiscal 2021.

我們的營收為 1.28 億美元，上一季的營收為 1.07 億美元，比去年成長 8%。然後是我們的工業市場。我們的石油和天然氣部門的收入連續第二個季度同比增長 7%，而石化部門的收入在 2022 財年第一季同比增長 88% 後增長了 85%。截至目前，我們工業市場的收入比2021財年同期高出21%。

Revenue from our utility sector grew by 7% compared to the prior year, while traction fell by 34% due largely to timing and our continuing efforts to exercise discipline and risk management within this market segment. We remain pleased with the focus and level of execution throughout all of our operations as we saw our gross margins improve sequentially, by 230 basis points to 14.9% in the second quarter.

與前一年相比，我們公用事業部門的收入成長了 7%，而牽引力下降了 34%，這主要是由於時機以及我們在該細分市場中不斷努力實行紀律和風險管理。我們對整個業務的重點和執行水準仍然感到滿意，因為我們看到第二季的毛利率環比提高了 230 個基點，達到 14.9%。

We continue working to find ways to mitigate the effects of the higher-cost environment. As we stated last quarter, we are beginning to recognize revenue on projects booked in the first half of fiscal 2021 that carry higher raw material and component costs, continuing to create a near-term headwind. However, we are cautiously optimistic that we have begun to see the stabilization in the prices of key commodities such as copper and steel.

我們繼續努力尋找減輕高成本環境影響的方法。正如我們上季度所述，我們開始確認 2021 財年上半年預訂的項目的收入，這些項目的原材料和零件成本較高，繼續造成短期阻力。不過，我們對銅、鋼等主要大宗商品價格開始企穩持謹慎樂觀態度。

(inaudible) engineering components continue to present a challenge both through supply availability and pricing. We are actively engaged with our suppliers, and where possible, passing through inflationary costs. We also continue to monitor and navigate the tight labor situation. While the expected upward pressure on wage costs remain an added potential headwind, we have largely been successful in working through these challenges across all of our manufacturing operations.

（聽不清楚）工程組件在供應可用性和定價方面繼續構成挑戰。我們積極與供應商合作，並在可能的情況下轉嫁通膨成本。我們也持續監測和應對緊張的勞動力狀況。儘管預期的工資成本上漲壓力仍然是額外的潛在阻力，但我們在所有製造業務中基本上成功地應對了這些挑戰。

As you may recall, while we did execute a modest restructuring at the outset of the global pandemic in 2020, we deliberately retain the majority of our workforce during fiscal 2021 despite lower revenue levels. We knew it was critically important to retain the technological and commercial know-how and skilled labor for the eventual return of our order and project activity. That decision is presently benefiting us as we start to pivot and plan for the growth of our backlog. Nonetheless, we will continue to prudently manage our fixed costs as we plan for future project activity.

您可能還記得，雖然我們在 2020 年全球大流行之初確實進行了適度的重組，但我們在 2021 財年有意保留了大部分員工，儘管收入水平較低。我們知道，保留技術和商業知識以及熟練勞動力對於我們的訂單和專案活動的最終恢復至關重要。隨著我們開始調整和規劃積壓訂單的成長，這項決定目前對我們有利。儘管如此，我們在規劃未來的專案活動時將繼續謹慎管理固定成本。

Moving to the bottom line, we reported a net loss of $1.2 million in the quarter compared to a net loss of $225,000 in the prior year. Net loss was mainly driven by a second fiscal quarter tax revision, as Mike will explain shortly in more detail. We ended the quarter with $114 million of cash and short-term investments and no debt. Our net cash position is $12 million higher than the prior quarter despite building working capital in the face of rising order activity to support the steady improvement of our end markets.

說到底線，我們報告本季淨虧損 120 萬美元，而上一年淨虧損 22.5 萬美元。淨虧損主要是由第二財季稅收修訂造成的，麥克將很快對此進行更詳細的解釋。截至本季末，我們擁有 1.14 億美元的現金和短期投資，沒有債務。儘管在訂單活動不斷增加的情況下建立了營運資金以支持我們終端市場的穩步改善，但我們的淨現金頭寸仍比上一季增加了 1200 萬美元。

Lastly, we ended the quarter with backlogs totaling $440 million, which marks sequential growth of 6% from $460 million at the end of the first quarter and is $3 million higher than one year ago. Now, we see our second-quarter results as another step in a positive direction. Perhaps most noteworthy is the fact that we continue to see an encouraging and broad recovery in overall order activity, despite the slower recovery dynamics of our industrial end markets.

最後，本季結束時，我們的積壓訂單總額為 4.4 億美元，比第一季末的 4.6 億美元季增了 6%，比一年前增加了 300 萬美元。現在，我們認為第二季的業績是朝著正面方向邁出的又一步。也許最值得注意的是，儘管工業終端市場的復甦勢頭較慢，但我們繼續看到整體訂單活動出現令人鼓舞的廣泛復甦。

These are legacy markets for Powell that have historically constituted the majority of our order book and revenues. While we have been experiencing a steady increase in cost estimating activities across an increasing funnel for our industrial end markets, including our core oil, gas, and petrochemical customers, capital spending still remains modestly below pre-pandemic levels.

這些是鮑威爾的傳統市場，歷史上構成了我們訂單和收入的大部分。儘管我們的工業終端市場（包括我們的核心石油、天然氣和石化客戶）的成本估算活動不斷增加，但資本支出仍略低於疫情前的水平。

Offsetting the pace of the industrial recovery, during the second quarter, the business recognized a greater proportion of utility and light industrial orders, while also continuing from the first quarter of fiscal 2022. Our Global Services team has delivered a strong performance in line with our strategic objectives. These results clearly demonstrate that the commercial strategies and deliberate strategic efforts to diversify our business, enhancing the share of growth opportunities in new markets and applications for Powell's technologies is beginning to deliver for all of our stakeholders.

抵消了工業復甦的步伐，在第二季度，該業務確認了更大比例的公用事業和輕工業訂單，這也是從2022 財年第一季度開始的。我們的全球服務團隊交付了強勁的業績，與我們的業績相符。策略目標。這些結果清楚地表明，旨在實現業務多元化、提高鮑威爾技術在新市場和應用中的成長機會份額的商業策略和深思熟慮的策略努力正在開始為我們所有的利害關係人帶來好處。

These positive changes will aid in de-risking our business and lead to less reliance on the heavy cyclical nature of our core markets. They are also significant steps towards our [status] strategy of expanding into new markets that are demanding innovative solutions and products where Powell can leverage its leading R&D capabilities and operational excellence.

這些積極的變化將有助於降低我們的業務風險，並減少對核心市場的嚴重週期性的依賴。它們也是我們向需要創新解決方案和產品的新市場擴張的[現狀]策略的重要一步，Powell 可以在這些市場中利用其領先的研發能力和卓越的營運能力。

Overall, our view of steady recovery and positive momentum across our markets on a month-to-month basis remains intact and unchanged. Customer attitudes around deploying capital are becoming gradually more positive. We expect the industrial markets to continue their pace of gradual but steady improvement and thoughtful capital investment for the remainder of fiscal 2020.

總體而言，我們對市場逐月穩定復甦和積極勢頭的看法保持不變。客戶對資本配置的態度逐漸變得積極。我們預計工業市場將在 2020 財年剩餘時間內繼續逐步但穩定的改善和深思熟慮的資本投資。

Customer activity across projects related to LNG, gas pipeline, and gas to chemicals continues to remain attractive, and opportunities within the more nascent like commercial and renewable sector remains active, providing opportunities for us to leverage Powell's strengths and capabilities. Additionally, we expect to continue our strategy of steady methodic growth across the utility distribution market throughout North America and the UK. And for the traction sector, we will continue to leverage the strength of technical solutions and proven execution capability balanced against prudent commercial risk management for light and mid-rail projects.

與液化天然氣、天然氣管道和天然氣製化學品相關的項目的客戶活動繼續保持吸引力，商業和可再生能源等新興領域的機會仍然活躍，為我們提供了利用鮑威爾的優勢和能力的機會。此外，我們預計將在整個北美和英國的公用事業分銷市場上繼續實施穩定、有條理的成長策略。對於牽引領域，我們將繼續利用技術解決方案的優勢和經過驗證的執行能力，與輕軌和中軌專案的審慎商業風險管理相平衡。

Reflecting on our second quarter results, and measuring progress against the strategic priorities that we've set forth, and the associated alignment of the business against these initiatives, we are pleased with the progress date. As a reminder, we have focused on broadening the following attributes: growing our electrical automation platform, expanding our existing services franchise, and diversifying our product portfolio through both targeting tangential applications that complement our existing product offerings, as well as expanding the scope of our product catalog into new electrical technologies.

反思我們第二季的業績，並根據我們制定的策略優先事項來衡量進展情況，以及業務與這些舉措的相關協調，我們對進展日期感到滿意。提醒一下，我們專注於擴大以下屬性：發展我們的電氣自動化平台，擴大我們現有的服務特許經營權，並透過瞄準補充我們現有產品的切向應用程式以及擴大我們的服務範圍來實現我們的產品組合多樣化。產品目錄融入新的電氣技術。

We are beginning to see the benefits materialize as a result of these efforts and look forward to sharing additional examples of our successes within each initiative. Lastly, our priorities for the year are unchanged. First and foremost is the health and safety of our employees, customers, and suppliers. Second, we remain focused on maintaining our solid execution performance, strong project closeouts, and factory efficiencies as we look to protect our margins in an inflationary cost environment. Next is a continuous evaluation of our current cost structure, supply chain, and resource planning to optimize operations across the geographies and markets that we serve.

我們開始看到這些努力所帶來的好處，並期待在每項措施中分享更多成功的例子。最後，我們今年的優先事項並沒有改變。首先也是最重要的是我們員工、客戶和供應商的健康和安全。其次，我們仍然專注於維持穩健的執行績效、強勁的專案收尾和工廠效率，因為我們希望在通貨膨脹的成本環境中保護我們的利潤。接下來是對我們目前的成本結構、供應鏈和資源規劃的持續評估，以優化我們所服務的地區和市場的運作。

Lastly, as we look over a longer-term horizon, we are committed to thoughtfully executing on our 3 strategic priorities, and updating investors on our progress as appropriate. With that, I'll turn the call over to Mike to provide more detail around our financial results.

最後，當我們放眼長遠時，我們致力於深思熟慮地執行我們的三個策略重點，並酌情向投資者通報我們的進展。這樣，我會將電話轉給麥克，以提供有關我們財務業績的更多詳細資訊。

Thank you, Brett, and Good morning, everyone. In the second quarter of fiscal 2022, we reported net revenue of $128 million higher by $9 million or 8%, versus the same period in the prior year. New orders booked for the second fiscal quarter of 2022 was $151 million, $62 million higher versus the prior year and $43 million higher sequentially.

謝謝布雷特，大家早安。 2022 財年第二季度，我們的淨收入為 1.28 億美元，比去年同期增加 900 萬美元，即 8%。 2022 年第二財季新訂單量為 1.51 億美元，比上年增加 6,200 萬美元，比上一季增加 4,300 萬美元。

As a result, our book-to-bill ratio based upon reported orders was $1.2 in the period, with $440 million of backlog at the end of the second fiscal quarter which was $3 million higher as compared to the same period a year ago. Compared to one year ago, domestic revenues were slightly lower by 1% versus the prior year to $87 million, while international revenues were 33% higher compared to the prior year, driven by strong value across all of our traditional international markets based in Canada, UK, and the Middle East. In total international revenues were $41 million in the second fiscal quarter.

因此，我們基於報告訂單的訂單出貨比為 1.2 美元，第二財季末積壓金額為 4.4 億美元，比去年同期增加了 300 萬美元。與一年前相比，國內收入比上年略低 1%，至 8700 萬美元，而國際收入比上年增長 33%，這得益於我們位於加拿大的所有傳統國際市場的強勁價值，英國、中東。第二財季國際總營收為 4,100 萬美元。

From a market sector perspective, revenues across our oil and gas and petrochemical sectors were higher by 20% versus the prior year, and the utility sector generated a 7% year-over-year increase in revenues. Offsetting these year-over-year revenue increases, our traction sector was lower by 34% versus the second fiscal quarter of 2021 on the timing of new large traction projects. Gross profit increased by $6 million sequentially and $2 million versus the same period one year ago to $19 million in the second fiscal quarter. As a percentage of revenue, gross profit increased by 230 basis points sequentially, and 50 basis points versus the prior year to 14.9%.

從市場板塊來看，油氣和石化板塊收入較去年同期成長20%，公用事業板塊營收年增7%。由於新建大型牽引項目的時間安排，我們的牽引部門較 2021 年第二財季下降了 34%，抵消了這些年收入成長。第二財季毛利季增 600 萬美元，年增 200 萬美元，達到 1,900 萬美元。毛利佔營收的百分比比上一季成長 230 個基點，比上年成長 50 個基點，達到 14.9%。

While inflationary pressures continue to be a headwind to the overall profitability, the business is beginning to recognize incremental pricing gains in the short cycle side of the business, while also offsetting the cost pressure with factory efficiencies and labor productivity. Selling, general, and administrative expenses were $17 million in the current quarter, 2% higher versus the same period a year ago. SG&A, as a percentage of revenue, decreased to 13% in the current quarter, and higher revenues and diligent cost management.

儘管通膨壓力仍然是整體獲利能力的阻力，但該企業開始認識到業務短週期方面的增量定價收益，同時也透過工廠效率和勞動生產力抵消了成本壓力。本季的銷售、一般和管理費用為 1,700 萬美元，比去年同期成長 2%。本季 SG&A 佔營收的百分比下降至 13%，營收增加且成本管理更加努力。

In the second quarter of fiscal 2022, we reported a net loss of $1.2 million, or a loss of 10 cents per diluted share, compared to a net loss of $225,000, or a loss of 2 cents per diluted share in the second quarter of fiscal 2021. Although pre-tax income in the second fiscal quarter was positive, the fiscal 2022 second-quarter net loss is primarily attributable to a tax provision that was recorded in anticipation of a stronger earnings profile than was previously expected for the total year fiscal 2022.

在2022 財年第二季度，我們報告的淨虧損為120 萬美元，即稀釋後每股虧損10 美分，而2022 財年第二季度的淨虧損為225,000 美元，即稀釋後每股虧損2 美分。2021 年。儘管第二財季稅前收入為正，但2022財年第二季度淨虧損主要歸因於一項稅收撥備，該撥備是由於預計2022財年全年盈利狀況將強此前預期而記錄的。

As such, our fiscal 2022 tax provision is currently aligned on a total year basis with these profitability expectations. Additionally, during the second fiscal quarter, we sold a small parcel of non-revenue generating land adjacent to one of our operating facilities, which was accretive to EPS by 2 cents per diluted share in the quarter. During the second quarter of fiscal 2022, net cash generated and operating activities was $15 million.

因此，我們的 2022 財年稅收撥備目前在全年基礎上與這些獲利預期保持一致。此外，在第二財季，我們出售了與我們的一個營運設施相鄰的一小塊非創收土地，這使得本季每股稀釋每股收益增加了 2 美分。 2022 財年第二季度，產生和經營活動產生的現金淨額為 1,500 萬美元。

This is in lieu of holding higher levels of inventory in order to help facilitate new orders and alleviate supply chain disruptions. Investments in property, plant and equipment totaled $680,000. At March 31st, 2021, we had cash and short-term investments of $114 million, $20 million lower than our fiscal 2021 year in the position. The company holds zero long-term debt. Looking forward, and considering the progress that the team has made in the first half of fiscal 2022 towards growing a commercial presence outside of our traditional industrial end markets, we're optimistic that continued growth in these markets will deliver countercyclical accretive revenue and earnings in future periods that will complement our historical industrial market base.

這取代了持有較高水準的庫存，以幫助促進新訂單並緩解供應鏈中斷。不動產、廠房及設備的投資總額為 68 萬美元。截至 2021 年 3 月 31 日，我們的現金和短期投資為 1.14 億美元，比 2021 財年減少了 2,000 萬美元。該公司長期債務為零。展望未來，考慮到該團隊在 2022 財年上半年在傳統工業終端市場之外擴大商業影響力方面取得的進展，我們樂觀地認為這些市場的持續增長將帶來反週期的收入和利潤增長。未來的時期將補充我們歷史上的工業市場基礎。

From a profitability perspective, we continue our efforts to proactively address the macro inflationary pressures through pricing actions, productivity initiatives, and commercial terms, to more directly address the current supply chain cost and material availability challenges, while also thoughtfully building inventory levels in order to maintain commercial competitiveness.

從獲利角度來看，我們繼續努力透過定價行動、生產力措施和商業條款積極應對宏觀通膨壓力，更直接地應對當前供應鏈成本和材料供應挑戰，同時也深思熟慮地建立庫存水平，以便保持商業競爭力。

In closing, we maintain our expectation that the second half of fiscal 2022 will show substantial improvement from a profitability standpoint as compared to the first half. With that, we will be happy to open the line up for questions.

最後，我們維持 2022 財年下半年獲利能力較上半年大幅改善的預期。這樣，我們將很樂意開放提問隊列。

(Operator Instructions) Our first question comes from John Franzreb with Sidoti & Company.

（操作員說明）我們的第一個問題來自 Sidoti & Company 的 John Franzreb。

I guess we're going to start with one of the things you left off with Mike about the tax reversal. Can you talk a little bit about why that necessarily happened? What changed versus 3 months ago? Has an audit been put forward? Any call there would be helpful.

我想我們要從你和麥克留下的關於退稅的一件事開始。您能談談為什麼會發生這種情況嗎？與 3 個月前相比有何變化？是否提出審核？任何電話都會有幫助。

Yes, sure, John, and to be clear, it wasn't necessarily a tax reversal. It was a provision that was made due to, you know, the realignment of our income. So first, I'd say, on a total year basis, the effective tax rate when we're at or near breakeven, very, very difficult to predict, but considering the commercial activity that we're seeing across our light industrial and utility end markets, especially during the second quarter here, in conjunction with the gradual recovery that Brett mentioned across our core industrial end markets, we anticipate additional revenue and margin versus our prior estimate on a total fiscal '22 year basis.

是的，當然，約翰，而且要明確的是，這不一定是稅收逆轉。你知道，這是為了調整我們的收入而製定的一項準備金。因此，首先，我想說，在全年的基礎上，當我們達到或接近盈虧平衡時，有效稅率非常非常難以預測，但考慮到我們在輕工業和公用事業中看到的商業活動終端市場，特別是在第二季度，再加上布雷特提到的我們核心工業終端市場的逐步復甦，我們預期營收和利潤率將高於我們先前對22 年總財年的估計。

So considering this, as a result of this, this necessitates an adjustment to the tax provision, which was taken in the discrete 2Q period of $1.8 million. This provision essentially now aligns the business with our anticipated earnings for the entire fiscal year.

因此，考慮到這一點，因此需要對稅務撥備進行調整，該撥備是在離散的第二季期間採取的 180 萬美元。這項規定現在基本上使業務與我們整個財年的預期收益保持一致。

Okay, it was more of a case of the light industrial side of the business proving to be better or firmer than some of the longer lead-type stuff you have a handle on. It was with light industrial, that was the delta there.

好吧，這更多的是事實證明，輕工業方面的業務比您掌握的一些較長的鉛型材料更好或更堅固。那裡有輕工業，就是三角洲。

As well as utility. We had a strong quarter in utility and light industrial.

以及實用性。公用事業和輕工業季度表現強勁。

Got it. You talked a little bit about the gross margin profile and the recent order book. How's that compared to, say, 3 months ago? Are you able to push through surcharges or escalators to offset commodity costs? Any little call there would be helpful.

知道了。您談到了毛利率概況和最近的訂單簿。與 3 個月前相比怎麼樣？您是否能夠透過附加費或自動扶梯來抵銷商品成本？任何一個小小的電話都會有幫助。

Hey, John, it's Brett. In the last quarter, yes, we are doing better in some of the market on price, especially that's tied to speed, shorter cycle deliveries, something that's kind of the next 2 to 6 months, and we see a lot of that in some of the light industrial and utility piece, but not fully. On projects that have a longer time horizon, there's still a fair amount of competition, something kind of a year, year and a half out for delivery. It's a little bit of a mixed market, but we definitely have taken a step forward this past quarter, doing better across the business, in understanding where the market's at and pricing appropriately into that market.

嘿，約翰，我是布雷特。是的，上個季度，我們在一些市場上的價格方面做得更好，特別是與速度、更短週期交付相關的價格，這是未來2 到6 個月的事情，我們在一些市場上看到了很多這樣的情況。輕工業和公用事業部分，但不完全。對於時間跨度較長的項目，仍然存在相當多的競爭，需要一年、一年半的時間才能交付。這是一個有點複雜的市場，但我們在上個季度確實向前邁出了一步，在整個業務領域做得更好，了解市場的狀況並針對該市場進行適當的定價。

Okay, and one last question, I'll get back into queue. Just on a bigger picture side here, what are your thoughts about recent geopolitical events, and has that changed the opportunity profile at all, or is it too soon to tell? Just your thoughts along those lines.

好的，最後一個問題，我會回到隊列。從更大的角度來看，您對最近的地緣政治事件有何看法？這是否根本改變了機會概況，還是現在下結論還為時過早？只是你的想法。

Yes, I think there's 2 parts of this because we do talk a lot about it. I already covered some of the market in terms of book and revenue and all that, Mike addressed some of the things on the cost side, and the ripple. First of all, for me, it's an advantage in the way we're structured right now. We're what we would call an integrated factory structure at our locations, not a feeder factory, where we compete against a lot of multinationals that they've developed their factory systems over the last 30 years.

是的，我認為這有兩個部分，因為我們確實談論了很多。我已經從帳面和收入等方面介紹了一些市場，麥克談到了成本方面的一些問題以及連鎖反應。首先，對我來說，這是我們目前的結構方式的優勢。我們的工廠是我們所謂的一體化工廠結構，而不是支線工廠，我們與許多跨國公司競爭，他們在過去 30 年裡開發了自己的工廠系統。

From an exposure standpoint, and when we go to market and what we convert when we buy our commodities and convert, and as we're selling into the market today, which is actually enhancing our ability to deliver on the speed side, which really did help second quarter in top-line order performance, we're not that exposed, and we have some exposure sort of into some suppliers, Europe and India, but really more the Americas, North and South, where we're aligned. So that's an advantage for Powell and will be for the next couple of quarters, I believe, as this sort of plays out. That said, where we do get exposure indirectly is sort of the ripple effect on logistics and not material for Powell per se, but when we have an integrated -- either large integrated switchgear offering or a PCR, there might be some exposure there with things that we buy. And so Mike has been very involved with the teams on that. I'll let him comment on some of that.

從敞口的角度來看，當我們進入市場時，當我們購買商品並進行轉換時，以及當我們今天向市場銷售時，這實際上增強了我們在速度方面的交付能力，這確實做到了幫助第二季的頂線訂單表現，我們沒有那麼暴露，我們對歐洲和印度的一些供應商有一些暴露，但實際上更多的是我們一致的美洲、北美和南美。因此，這對鮑威爾來說是一個優勢，我相信，隨著這種情況的發生，未來幾季也會如此。也就是說，我們間接接觸到的風險是對物流的連鎖反應，對鮑威爾本身來說並不重要，但當我們有一個整合的——無論是大型整合式開關設備產品還是PCR 時，可能會有一些接觸我們購買的。因此，麥克一直積極參與團隊的工作。我會讓他對此發表評論。

Yes, John, just on the core raw materials that the business consumes, you know, copper, aluminum, steel, stainless steel, things of that nature. Clearly, the upheaval in Ukraine, and Russia has an impact on those core commodities, which we are keeping very close to and, you know, buying forward where we can and looking at potentially hedging some of these things. On the flip side, you know, with the LNG pressure that Europe's feeling that potentially in a mid-longer-term perspective may have some benefits to the U.S. producers in this (inaudible).

是的，約翰，就企業消耗的核心原料而言，你知道，銅、鋁、鋼、不鏽鋼，諸如此類的東西。顯然，烏克蘭和俄羅斯的動盪對這些核心商品產生了影響，我們一直非常關注這些商品，並且盡可能遠期購買，並考慮潛在地對沖其中一些商品。另一方面，您知道，歐洲認為從中長期角度來看，液化天然氣壓力可能會給美國生產商帶來一些好處（聽不清楚）。

Our next question comes from Jon Braatz with Kansas City Capital. Please go ahead.

我們的下一個問題來自堪薩斯城資本公司的喬恩‧布拉茨 (Jon Braatz)。請繼續。

Brett, When you look at the incoming orders that you generated here in the second quarter, can you sort of parse that out between some of the legacy business versus the new activity in the commercial area? What kind of inroads are you making and progress you are making on the commercial side?

布雷特，當您查看第二季度產生的傳入訂單時，您能否在商業領域的一些遺留業務與新活動之間進行分析？你們在商業方面取得了哪些進展？

So, yes, on the legacy side -- I would first talk about utility. You know, if you remember, John, over really our last 5-plus years, I've talked a lot about our methodic progress in the utility starting with Canada, you know, go back to the '14, '15 downturn, never really recovered in West Canada as quick as we did in the States. And so we had to fit it, and we did do R&D development support of that effort into a utility strong East Canada strategy. And we talked about that over the last couple of years.

所以，是的，在遺留方面——我先談談實用性。你知道，如果你還記得的話，約翰，在過去5 年多的時間裡，我已經談論了很多關於我們從加拿大開始的公用事業方面的有條不紊的進展，你知道，回到14、15 年的低迷時期，從來沒有加拿大西部的恢復速度確實和美國一樣快。因此，我們必須適應它，我們確實為這項努力提供了研發支持，將其融入強大的加拿大東部策略中。過去幾年我們一直在討論這個問題。

And so along with that, we've seen methodic progress in the US on distribution, more so the generation for our offering, our enclosed solution, so a more robust, a little higher initial price, but you get a longer life out of the asset for the utility. And so I think in the second quarter, it's along those lines, and I think that there's been some -- because of the way we are structured and the ability to still kind of hit some quick deliveries, sort of saw some upturn in that market specifically.

除此之外，我們還看到美國在分銷方面取得了有條不紊的進展，尤其是我們的產品一代、我們的封閉式解決方案，因此更強大，初始價格稍高，但您可以從產品中獲得更長的使用壽命公用事業的資產。因此，我認為在第二季度，正是沿著這些思路，而且我認為已經出現了一些——因為我們的結構方式以及仍然能夠實現一些快速交付的能力，在某種程度上看到了該市場的一些好轉具體來說。

On new markets, the 3 straight [status] strategies, especially around developing new products for the markets that we serve, go back to when Tom acquired the GE Power backline in 2006. Subsequently, the [IS] grouping sold to ABB, that really threw Powell into channels and having to develop new ways into the market versus just direct sales through our stronger than historical relationships with our core.

在新市場上，3 個直接[狀態] 策略，特別是圍繞為我們服務的市場開發新產品，可以追溯到Tom 在2006 年收購GE Power 後線時。隨後，[IS] 集團出售給ABB，這確實是讓鮑威爾進入管道，必須透過我們與核心的比歷史上更牢固的關係開發進入市場的新方式，而不是直接銷售。

As we kind of were working through our strategy over the last couple of years, one of the tactics that we had to develop was a better understanding, support, and strategy around those channels. We are seeing in this past quarter the results of that. There is a fair amount of opportunity that I think historically we would not have seen if 18 months, 2 years ago, we wouldn't have beefed up that strategy on the channel piece. It's giving us exactly what we want, and it's giving us upside orders, but also a lot of intel on where we've got to continue to invest in order to sustain that well into the future. It's been a real positive move for the company.

當我們在過去幾年中製定我們的策略時，我們必須制定的策略之一是更好地理解、支持和圍繞這些管道製定策略。我們在上個季度看到了結果。我認為，從歷史上看，如果 18 個月即 2 年前我們沒有加強通路方面的策略，我們就不會看到大量的機會。它給了我們正是我們想要的東西，給了我們向上的訂單，而且還提供了很多信息，告訴我們我們必須繼續在哪裡進行投資，才能在未來保持良好的狀態。這對公司來說是一個真正積極的舉措。

Okay. To the extent that, let's say, some of these projected LNG projects go forward and there's an opportunity for Powell, and, let's say, a large opportunity, a sizable opportunity, given what we've seen in the past, the most recent past in terms of the inflationary pressures, how do you approach a project like that, and are you able to, in pursuing a project like that, put in more protections, at this point now, to protect yourself from the inflationary pressures, or would you still be sort of at the whims of some escalating costs again?

好的。在某種程度上，比如說，其中一些預計的液化天然氣項目正在推進，鮑威爾有一個機會，而且，可以說，一個很大的機會，一個相當大的機會，考慮到我們過去所看到的，最近的過去就通膨壓力而言，您如何處理這樣的專案？在實施這樣的專案時，您是否能夠在目前這個時刻採取更多保護措施來保護自己免受通貨膨脹壓力的影響，或者您會這樣做嗎？仍然會再次受到一些不斷上升的成本的影響嗎？

Yes, great question. The short answer is yes, we're able to put in some protections, but there isn't an element of delicacy in that because there are still competitive pressures, and the longer -- as I noted, with John Franzreb, as you can look out further, there's still more competition for jobs that are 2 or 3 years out, some assumption of a recovery on the cost side, but they are real costs, and so we are, as I noted the last couple of quarters, doing a lot of work with our engineering partners and the end client on several jobs, and we are putting protections in there.

是的，很好的問題。簡而言之，答案是肯定的，我們能夠採取一些保護措施，但其中沒有任何微妙的因素，因為仍然存在競爭壓力，而且時間更長——正如我與約翰·弗朗茨雷布（John Franzreb ）所指出的那樣，你可以進一步看，兩三年後的工作崗位競爭仍然更加激烈，成本方面有一些復甦的假設，但它們是實際成本，因此，正如我在過去幾個季度中指出的那樣，我們正在做我們與我們的工程合作夥伴和最終客戶在多項工作中進行了大量工作，我們正在其中設置保護措施。

Everything from validity, and a lot more work even with the sub-supply piece, whether -- not so much on the commodity piece. I think Mike and the team have done very well there, but I'm managing their component piece. There's a lot more work going into that. And then we do project out what-ifs, and so there's a lot more, "How do we plan that out? When would it hit? What could we buy upfront?" and really even modifying some of our engineering process to understand where can we do some things early in the project with their help, maybe pivoting some milestones to walk in things earlier in the project than we might have historically.

一切都來自有效性，甚至還有更多的工作，即使是次級供應件，是否——在商品件上沒有那麼多。我認為麥克和團隊在那裡做得很好，但我正在管理他們的組成部分。這方面還有很多工作要做。然後我們確實計劃出假設，所以還有更多，“我們如何計劃？它什麼時候發生？我們可以預先購買什麼？”甚至修改我們的一些工程流程，以了解在他們的幫助下，我們可以在專案早期的哪些地方做一些事情，也許可以調整一些里程碑，以便比我們歷史上更早地在專案中進行一些事情。

So those are the collaborative discussions we have. So there's a way through it. Of course, our goal is to deliver on time and on budget and certainly expand our brand. So we don't want to lose that. And so I think being predictable with our clients and those discussions being transparent while also demonstrating that we still think we're the best to hit these complex projects more than any other model out there. So it is a lot more than a typical just -- what we saw in the past, fitting these large jobs, but I think we're the best, and there's a couple still percolating out there. So…

這些就是我們的合作討論。所以有辦法解決它。當然，我們的目標是按時、按預算交付，並肯定會擴大我們的品牌。所以我們不想失去它。因此，我認為與我們的客戶保持可預測性，並且這些討論是透明的，同時也表明我們仍然認為我們比任何其他模型都更能完成這些複雜的項目。因此，這不僅僅是我們過去看到的典型情況，適合這些大型工作，但我認為我們是最好的，而且還有一些仍在滲透。所以…

Okay. Speaking specifically about LNG projects, do you see some of them reaching FID and moving forward here?

好的。具體談到液化天然氣項目，您是否看到其中一些項目已達到最終投資決定並在此推進？

I do. I think in the next 9 to 12 months, there's a couple of -- and not just LNG, but there are a couple of LNG gas-related jobs that are -- there's still some [sliding to the right on] schedule, whether it's geopolitical, how they're rolling up all their costs on the structural steel side. I'm sure there's a lot of moving parts that are more than just the electrical distribution, but I definitely believe there are some jobs that are continuing to move closer to that go-forward point.

我願意。我認為在接下來的 9 到 12 個月裡，有一些——不僅僅是液化天然氣，還有一些與液化天然氣相關的工作——仍然有一些[按計劃向右滑動]，無論是地緣政治，他們如何將所有成本集中在結構鋼方面。我確信有很多變化的部分不僅僅是配電，但我絕對相信有一些工作正在繼續接近這個前進點。

This concludes our question-and-answer session. I would like to turn the conference back over to the CEO, Brett Cope, for any closing remarks.

我們的問答環節到此結束。我想將會議轉回執行長布雷特·科普 (Brett Cope) 發表閉幕詞。

Thanks, Joe. As we stated on today's call, we view our second quarter results as a significant and positive step in the recovery, and we are optimistic about improved performance in the second half of the year. Trends across our end markets remain favorable, and we possess an incredibly talented team. A healthy backlog, strong balance sheet, and great relationships with our customers and suppliers. With that, thank you for your participation in today's call. We appreciate your continued interest in Powell, and we look forward to speaking with you all the next quarter.

謝謝，喬。正如我們在今天的電話會議上所說，我們認為第二季度的業績是復甦過程中邁出的重要而積極的一步，我們對下半年業績的改善持樂觀態度。我們的終端市場趨勢仍然有利，而且我們擁有一支非常有才華的團隊。健康的積壓訂單、強大的資產負債表以及與客戶和供應商的良好關係。在此，感謝您參加今天的電話會議。我們感謝您對鮑威爾的持續關注，我們期待在下個季度與您交談。

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。