Pioneer Power Solutions Inc (PPSI) 2014 Q3 法說會逐字稿

Good day and welcome to the Pioneer Power Solutions third-quarter fiscal 2014 conference call. Today's conference is being recorded. At this time I would like to turn the conference over to Brett Maas of Hayden IR. Please go ahead.

美好的一天，歡迎參加先鋒電源解決方案 2014 財年第三季度電話會議。今天的會議正在錄製中。這次我想把會議交給 Hayden IR 的 Brett Maas。請繼續。

Thank you. The call today will be hosted by Nathan Mazurek, Chairman and Chief Executive Officer, and Andrew Minkow, Chief Financial Officer. Following this discussion there will be a formal Q&A session open to participants on the call. We appreciate having the opportunity to review the 2014 third-quarter financial results.

謝謝。今天的電話會議將由董事長兼首席執行官 Nathan Mazurek 和首席財務官 Andrew Minkow 主持。討論結束後，將向電話會議參與者開放正式的問答環節。我們很高興有機會回顧 2014 年第三季度財務業績。

Before we get started, let me remind you that this call is being broadcast over the Internet and that recording of the call and the text of management's prepared remarks will be available on the Company's website.

在我們開始之前，讓我提醒您，這次電話會議正在通過互聯網進行廣播，並且電話錄音和管理層準備好的講話文本將在公司網站上提供。

During this call management will make forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to the cautionary text regarding forward-looking statements contained in the earnings release issued today and in the posted version of these prepared remarks both of which apply to the content of this call.

在此通話期間，管理層將做出前瞻性聲明。這些陳述基於當前的預期和假設，存在可能導致實際結果存在重大差異的風險和不確定性。請參閱今天發布的收益報告和這些準備好的評論的發布版本中包含的有關前瞻性陳述的警示文本，這兩者均適用於本次電話會議的內容。

I will now turn the call over to Nathan Mazurek, Chairman and CEO for opening comments. Nathan?

我現在將把電話轉給董事長兼首席執行官內森·馬祖雷克 (Nathan Mazurek) 發表開場評論。內森？

Thank you, Brett. Good afternoon, everyone, and thank you for joining us today for the conference call. This was a strong quarter for Pioneer Power validating our expectations that the second half of the year would be stronger than the first half. More importantly, the strength of our performance was broad-based with essentially all of our business operating on track and this essentially reinforces our confidence in 2015.

謝謝你，布雷特。大家下午好，感謝您今天參加我們的電話會議。對於先鋒電力來說，這是一個強勁的季度，證實了我們的預期，即今年下半年將比上半年更強勁。更重要的是，我們的業績表現基礎廣泛，基本上所有業務都在正常運營，這從根本上增強了我們對 2015 年的信心。

In the third quarter, we delivered solid results by most any financial metric including double-digit percentage increases in revenue EBITDA and EPS. At just over $27 million, our order backlog is not only more diverse than it has ever been before but it is very robust in absolute terms giving us a high level of visibility into our expected revenue over the next several months.

在第三季度，我們在大多數財務指標上都取得了穩健的業績，包括收入 EBITDA 和 EPS 實現兩位數百分比增長。我們的積壓訂單數量剛剛超過 2700 萬美元，不僅比以往任何時候都更加多樣化，而且絕對數量非常強勁，使我們能夠高度了解未來幾個月的預期收入。

As of September 30, 2014, our backlog is up 13% as compared to $24.4 million at the start of the year. As compared to the same quarter of last year September 2013, our backlog is up a full 29%. The same trend is evident in our order rate. During the quarter we received approximately $22.8 million in customer purchase orders as compared to $18.9 million in the third quarter of 2013, an increase of 20%. We expect that 2015 will be a very strong year for us on several levels particularly as it relates to our year-over-year growth anticipated in our top and bottom-line. This expectation was made possible by our investments in the last 18 months to elevate our core earnings power through the integration of two acquisitions, the broadening of our addressable market, and the expansion of our sales and engineering teams in order to capitalize on previously unavailable sales opportunity.

截至 2014 年 9 月 30 日，我們的積壓訂單比年初的 2,440 萬美元增加了 13%。與去年同期（2013 年 9 月）相比，我們的積壓訂單增加了整整 29%。我們的訂單率也呈現出同樣的趨勢。本季度我們收到約 2280 萬美元的客戶採購訂單，與 2013 年第三季度的 1890 萬美元相比，增長了 20%。我們預計 2015 年對我們來說在多個層面上都將是非常強勁的一年，特別是因為這與我們預計的收入和利潤的同比增長有關。這一預期之所以成為可能，是因為我們在過去18 個月中進行了投資，通過整合兩次收購來提高我們的核心盈利能力、擴大我們的目標市場以及擴大我們的銷售和工程團隊，以便利用以前無法實現的銷售機會。

I believe that the combination of these activities has significantly enhanced Pioneer's profile for sustainable growth.

我相信，這些活動的結合極大地提高了先鋒公司可持續增長的形象。

In the short-term however, these activities came at a cost and had a notable impact on our reported earnings beginning in the fourth quarter of last year. During this most recent quarter, we began to see positive signs that we are close to turning the corner on realizing the return we expect from the talent that we have hired in the last several months and the increased SG&A expense we put in place.

然而，從短期來看，這些活動是有代價的，並對我們去年第四季度開始的報告收益產生了顯著影響。在最近一個季度，我們開始看到積極的跡象，表明我們即將實現我們對過去幾個月僱用的人才的預期回報以及我們增加的銷售、管理和行政費用的預期。

From a qualitative standpoint, the diversity, the size, the rate of our quotation activity is at all-time highs. Customers are responding positively to our new capabilities and the expertise we bring to bear. From a quantitative standpoint, our SG&A expense as a percent of revenue is down 0.5% compared to the same quarter last year. As always the timing of certain customer orders and shipments which is inherent to our project base business model as well as external factors like foreign currency exchange and translation frequently impacts our quarter-to-quarter results but over the long-term, we are headed in the right direction for sustainable revenue and earnings growth.

從質量的角度來看，我們報價活動的多樣性、規模和比率都處於歷史最高水平。客戶對我們的新能力和我們提供的專業知識做出了積極的反應。從數量角度來看，我們的銷售、管理及行政費用佔收入的百分比比去年同期下降了 0.5%。一如既往，我們項目基礎業務模式所固有的某些客戶訂單和發貨的時間以及外幣兌換和換算等外部因素經常影響我們的季度業績，但從長遠來看，我們正朝著可持續收入和盈利增長的正確方向。

One of the catalysts driving our business more recently has been the data center market. Demand for programmable equipment to manage the distribution of electricity in backup power scenarios primarily coupled with the demand for magnetics and magnetic solutions which are integral to managing the quality of the power inside the data center creates a significant and growing opportunity for Pioneer.

最近推動我們業務的催化劑之一是數據中心市場。對用於管理備用電源場景中的電力分配的可編程設備的需求，主要與對管理數據中心內電力質量不可或缺的磁性和磁性解決方案的需求相結合，為先鋒創造了重要且不斷增長的機會。

During the third quarter, we saw these two factors manifest themselves in a significant way. Sales to the data center market exceeded $3 million during the quarter or more than 10% of our overall revenue and we believe this momentum will continue in the fourth quarter and accelerate in 2015.

在第三季度，我們看到這兩個因素以顯著的方式體現出來。本季度數據中心市場的銷售額超過 300 萬美元，占我們總收入的 10% 以上，我們相信這一勢頭將在第四季度持續，並在 2015 年加速。

I think this development is also emblematic of our efforts to make Pioneer more diverse in terms of its exposure to different end markets. For example in 2013, we benefited from strong demand in the oil and gas sector. This demand began to ebb somewhat during the first half of 2014 and as the price of oil has fallen dramatically in the last few months, we are feeling less demand for major capital projects in the oil and gas industry slated for next year. However given the greater diversity we now enjoy overall in our end markets, we expect that our data center and other market segment-driven solutions will be able to more than pick up the slack and indeed be part of the accelerated growth we expect for 2015.

我認為這一發展也像徵著我們努力使先鋒在不同終端市場的接觸更加多樣化。例如，2013年，我們受益於石油和天然氣行業的強勁需求。這種需求在 2014 年上半年開始有所下降，並且由於過去幾個月石油價格大幅下跌，我們感到對明年石油和天然氣行業主要資本項目的需求有所減少。然而，鑑於我們現在在終端市場上總體上享有更大的多樣性，我們預計我們的數據中心和其他細分市場驅動的解決方案將不僅能夠彌補這一不足，而且確實成為我們預計2015 年加速增長的一部分。

With the third quarter behind us, today we are reiterating our 2014 financial guidance. Andrew will review this in more detail shortly. The strategic investments we have made position us for incremental growth and earnings improvements in 2015. I remain confident that we are on the right path towards accelerated top on bottom-line growth.

隨著第三季度的過去，今天我們重申 2014 年的財務指引。安德魯將很快對此進行更詳細的審查。我們所做的戰略投資使我們能夠在 2015 年實現增量增長和盈利改善。我仍然相信，我們正走在加速實現淨利潤增長的正確道路上。

I will now turn the call over to Andrew Minkow, our Chief Financial Officer, to provide details of our 2014 third-quarter and year-to-date financial results as well as a review of our 2014 guidance.

我現在將把電話轉給我們的首席財務官 Andrew Minkow，他將提供我們 2014 年第三季度和年初至今財務業績的詳細信息以及對 2014 年指引的回顧。

Thank you, Nathan. I will first review the results for the September quarter and year to date in a little more detail and then I will review our 2014 guidance.

謝謝你，內森。我將首先更詳細地回顧 9 月份季度和今年迄今為止的結果，然後我將回顧我們 2014 年的指導。

Third-quarter revenues were $26.1 million, up 16.3% from $22.4 million in the third quarter of 2013. More specifically, the $3.7 million year-over-year increase was driven by approximately $1 million in higher sales of electrical transformers, up 4.4% over last year and a $2.7 million sales increase of circuit protection and control equipment sold by our Pioneer Critical Power and Pioneer CEP business units. The increase in circuit protection and control equipment or CPC represents a $2.7 million or 318% increase compared to the September quarter of last year. From time to time our sales figures are negatively impacted by the effect of foreign currency translation when comparing our results to prior year periods as was the case this quarter.

第三季度收入為2610 萬美元，比2013 年第三季度的2240 萬美元增長16.3%。更具體地說，370 萬美元的同比增長是由電氣變壓器銷售額增加約100 萬美元推動的，比2013年第三季度增長4.4%去年，我們的 Pioneer Critical Power 和 Pioneer CEP 業務部門的電路保護和控制設備銷售額增加了 270 萬美元。電路保護和控制設備（CPC）的增長意味著與去年第二季度相比增加了 270 萬美元，即 318%。將我們的業績與去年同期進行比較時，我們的銷售數據有時會受到外幣換算的負面影響，本季度就是如此。

But on that subject, we've achieved an important milestone this quarter which was that for the first time our sales to US customers exceeded sales to Canadian customers. We expect this reversal to become the new norm starting in 2015 and that foreign currency translation will become a more muted factor in evaluating our results.

但在這個問題上，我們本季度實現了一個重要的里程碑，那就是我們對美國客戶的銷售額首次超過了對加拿大客戶的銷售額。我們預計這種逆轉將成為 2015 年開始的新常態，而外幣換算將成為評估我們業績時一個更為溫和的因素。

Turning to our gross profit for the third quarter, it was up to $6.7 million or 25.7% gross margin compared to a $5.9 million gross profit or a 26.3% gross margin in the third quarter of 2013.

第三季度的毛利潤高達 670 萬美元，毛利率為 25.7%，而 2013 年第三季度的毛利潤為 590 萬美元，毛利率為 26.3%。

The gross margin percentage on sales of transformers decreased by 1.5% during the quarter driven mostly by a less favorable sales mix in our liquid-filled product categories which was partially offset by a slightly higher gross margin on increased sales of dry type transformers compared to the prior year quarter. Critical Power, our highest gross profit margin business was the driving force behind the 34.1% gross margin earned on our CPC equipment sales during the quarter. This is down 1.9% for the product class as compared to the same quarter of last year due to the increased CPC sales of our new Pioneer CEP business unit, a business whose revenues have been growing rapidly and whose products attract an inherently lower gross margin percentage than Critical Power Solutions.

本季度變壓器銷售的毛利率下降了 1.5%，主要是由於我們的液體填充產品類別的銷售組合較差，但乾式變壓器的銷售毛利率略高於同期水平，部分抵消了這一影響。上一年季度。 Critical Power 是我們毛利率最高的業務，是本季度 CPC 設備銷售毛利率達到 34.1% 的推動力。與去年同期相比，該產品類別下降了 1.9%，這是由於我們新的先鋒 CEP 業務部門的 CPC 銷售額增加，該業務部門的收入一直在快速增長，但其產品的毛利率本來就較低比關鍵電源解決方案。

For the quarter, our selling, general and administrative expenses increased 12.8% on an absolute dollar basis to $4.1 million as compared to $3.6 million in the third quarter of 2013. As a percentage of revenue, SG&A expenses decreased from 16.1% of revenue in the third quarter of 2013 to 15.6% of revenue in the third quarter of 2013.

本季度，我們的銷售、一般和管理費用按絕對美元計算增長了12.8%，達到410 萬美元，而2013 年第三季度為360 萬美元。從占收入的百分比來看，SG&A 費用從2013 年第三季度佔收入的16.1% 下降。佔2013年第三季度收入的15.6%。

Operating income from the quarter increased 22.6% to $2.8 million, up from $2.3 million in the third quarter of 2013. The increase was the result of higher overall sales which was partially offset by a lower gross margin and an increase in SG&A.

該季度的營業收入增長了22.6%，達到280 萬美元，高於2013 年第三季度的230 萬美元。這一增長是由於整體銷售額增加，但毛利率下降和銷售、一般管理費用(SG&A)增加部分抵消了這一增長。

Net earnings increased 76.7% in the quarter to $1.8 million from $1 million in the prior year's quarter. Our adjusted EBITDA was $3.2 million during the quarter or 12.4% of revenue as compared to $2.7 million or 12% of revenue in the third quarter of 2013.

本季度淨利潤增長 76.7%，從去年同期的 100 萬美元增至 180 萬美元。本季度調整後的 EBITDA 為 320 萬美元，佔收入的 12.4%，而 2013 年第三季度的調整後 EBITDA 為 270 萬美元，佔收入的 12%。

Our non-GAAP diluted EPS was $0.28, up 33% [0.3%] from $0.21 in the prior year.

我們的非 GAAP 攤薄後每股收益為 0.28 美元，比上一年的 0.21 美元增長 33% [0.3%]。

Turning to our nine months financial results for the period ended September 30, 2014, our revenues in the nine months were $68.1 million, up 1.6% or $1.1 million from $67 million in the comparable period of 2013. Breaking this down further, the increase was due to a nearly fivefold increase in sales of CPC equipment which increased to $6.7 million compared to $1.4 million in the prior-year period partially offset by a $4.2 million or 6.5% decrease in transformer sales during the nine months ended September 30, 2013.

轉向我們截至2014 年9 月30 日的九個月財務業績，我們這九個月的收入為6,810 萬美元，比2013 年同期的6,700 萬美元增長1.6%，即110 萬美元。進一步細分，增幅為由於CPC 設備的銷售額增長了近五倍，從去年同期的140 萬美元增至670 萬美元，但截至2013 年9 月30 日的九個月內變壓器銷售額下降了420 萬美元，即6.5 %，部分抵消了這一影響。

Approximately two-thirds of the decrease in liquid-filled transformer sales was driven by foreign currency translation. The remainder of the decline was due to a number of large unrepeatable project-based orders during the first nine months of 2013 particularly in the oil and gas sector that were not fully replaced during the 2014 period. Utility sales of liquid-filled transformers were stable on a year-over-year basis measured in constant currency reflecting lower capital spending by some of our largest Canadian utility customers offset by a significant increase in US utility sales which still remain a small component of our overall liquid-filled transformer revenue.

液體變壓器銷售額下降的大約三分之二是由外幣換算造成的。下降的其餘部分是由於 2013 年前 9 個月期間大量不可重複的基於項目的訂單，特別是在石油和天然氣行業，這些訂單在 2014 年期間沒有完全取代。以固定貨幣計算，液體變壓器的公用事業銷售同比保持穩定，反映出我們一些最大的加拿大公用事業客戶的資本支出減少，但被美國公用事業銷售的大幅增長所抵消，而美國公用事業銷售仍然只佔我們的一小部分。充液變壓器的總體收入。

The net decrease in our dry type transformer sales during the nine months ended September 30, 2014 occurred mostly during the first two quarters and resulted from lower demand in our Canadian electrical distributor channel compounded by the effect of currency translation. Our US sales of dry type transformers were up approximately 1% during the nine months ended September 30, 2014.

截至2014 年9 月30 日的九個月內，我們的干式變壓器銷售額淨下降主要發生在前兩個季度，這是由於我們的加拿大電氣分銷商渠道的需求下降以及貨幣換算的影響而導致的。截至 2014 年 9 月 30 日的九個月內，我們的干式變壓器在美國的銷售額增長了約 1%。

Turning to Critical Power, Critical Power accounted for almost half of our sales of CPC equipment during the first nine months of 2014, which consisted mostly of paralleling switchgear and gen set controls for large data center projects. Pioneer CEP, which was established in August 2013 to serve electrical distributors in the US Southwest, represented the other half of our sales of CPC equipment during the nine months ended September 30, 2014.

至於關鍵電源，2014 年前 9 個月，關鍵電源幾乎占我們 CPC 設備銷售額的一半，其中主要包括大型數據中心項目的並聯開關設備和發電機組控制。 Pioneer CEP 成立於 2013 年 8 月，旨在為美國西南部的電氣經銷商提供服務，在截至 2014 年 9 月 30 日的九個月中，該公司占我們 CPC 設備銷售額的另一半。

For the nine months, our gross profit was down 4.5% to $15.8 million at a 23.2% gross margin compared to $16.6 million of gross profit dollars at a 24.7% gross margin for the year-ago period. The decrease in gross margin was driven primarily by lower project-based industrial orders for our liquid-filled transformers as compared to the prior-year period.

在這 9 個月中，我們的毛利潤下降了 4.5%，至 1580 萬美元，毛利率為 23.2%，而去年同期的毛利潤為 1660 萬美元，毛利率為 24.7%。毛利率下降的主要原因是與去年同期相比，我們的液體變壓器的基於項目的工業訂單減少。

As for our sales mix which is instrumental to understanding shifts in our consolidated gross margin for the nine months ended September 30, 2014 as compared to the same nine months of 2013, liquid-filled transformers represented 45% of our consolidated revenue which is down from 51% of consolidated revenue in the prior year. Dry type transformers represented 45.1%, down from 46.9% and CPC equipment grew to represent 9.8% of our sales for the nine months ended 2014, up from 2% in 2013.

至於我們的銷售組合，這有助於了解我們截至2014 年9 月30 日止九個月的綜合毛利率與2013 年同期九個月相比的變化，液體變壓器占我們綜合收入的45%，低於上一年綜合收入的 51%。截至 2014 年的前 9 個月，乾式變壓器占我們銷售額的 45.1%，低於 46.9%；CPC 設備占我們銷售額的 9.8%，高於 2013 年的 2%。

Turning to SG&A, for the nine months, our expenses were $11.5 million or 17% of revenues compared to $10.7 million or 15.9% of revenues in the year-ago period. The 8.3% increase in our SG&A dollars was driven primarily by having additional months of operations in the 2014 period for the two businesses we acquired during the 2013 period representing $1.4 million of incremental expense. In addition, our corporate expenses increased by $0.5 million primarily due to the expansion of our corporate selling group. Offsetting these increases, SG&A expenses in our transformer businesses were down by approximately $1 million or 12.7% primarily as a result of lower variable selling expense including commissions and freight.

就銷售、管理及行政費用而言，過去 9 個月，我們的支出為 1,150 萬美元，佔收入的 17%，而去年同期為 1,070 萬美元，佔收入的 15.9%。我們的 SG&A 美元增長 8.3%，主要是由於我們在 2013 年期間收購的兩項業務在 2014 年期間增加了運營幾個月，相當於 140 萬美元的增量費用。此外，我們的企業費用增加了 50 萬美元，主要是由於我們企業銷售團隊的擴大。我們變壓器業務的 SG&A 費用減少了約 100 萬美元或 12.7%，主要是由於包括佣金和運費在內的可變銷售費用降低，抵消了這些增長。

Our nine-month operating income decreased by 25.2% to $4.4 million from $5.9 million in the year-ago period. Net earnings decreased to $2.7 million down from $3.2 million in the prior year. Our adjusted EBITDA for the nine months was $5.7 million or 8.4% of sales as compared to $7.1 million or 10.6% of sales in the first three quarters of 2013.

我們 9 個月的營業收入從去年同期的 590 萬美元下降到 440 萬美元，下降了 25.2%。淨利潤從上一年的 320 萬美元降至 270 萬美元。我們這九個月的調整後 EBITDA 為 570 萬美元，佔銷售額的 8.4%，而 2013 年前三個季度為 710 萬美元，佔銷售額的 10.6%。

Lastly, our non-GAAP diluted EPS was $0.43 for the nine months, down from $0.63 in the comparable 2013 period.

最後，我們這 9 個月的非 GAAP 稀釋每股收益為 0.43 美元，低於 2013 年同期的 0.63 美元。

Turning to the balance sheet, our total debt is down to $9.7 million as compared to $10.1 million at the end of 2013. As of the end of the third quarter, we had net working capital of $14.9 million compared to net working capital of $13.8 million which includes $4.4 million of cash and equivalents as at December 31, 2013. Our ratio of current assets to liabilities stands at 1.8 to 1 and we had $10.6 million of available and unused borrowing capacity from our revolving credit facilities without taking into account cash and equivalents currently on hand of $0.7 million as of September 30, 2014.

轉向資產負債表，我們的總債務降至 970 萬美元，而 2013 年底為 1,010 萬美元。截至第三季度末，我們的淨營運資本為 1,490 萬美元，而淨營運資本為 1,380 萬美元其中包括截至2013 年12 月31 日的440 萬美元現金和等價物。我們的流動資產與負債之比為1.8 比1，在不考慮現金和等價物的情況下，我們從循環信貸設施中擁有1,060 萬美元的可用和未使用借款能力截至 2014 年 9 月 30 日，目前手頭有 70 萬美元。

The availability of this capacity under our revolving credit facility is subject to some restrictions on the use of proceeds and is dependent upon our continuing ability to satisfy certain financial and operating covenants including financial ratios.

我們的循環信貸額度下這種能力的可用性受到收益使用的一些限制，並且取決於我們持續滿足某些財務和運營契約（包括財務比率）的能力。

Lastly as Nathan mentioned, today we are reiterating the full-year revenue and earnings guidance for 2014 that we provided in the last quarterly earnings call. This guidance suggests that revenues will fall in the range of $88 million to $92 million for the year, adjusted EBITDA in the range of $7.5 million to $8.5 million, and non-GAAP diluted EPS of between $0.60 and $0.66. Today we are reaffirming this guidance based on year-to-date trends in the business as well as the current composition of our order backlog.

最後，正如 Nathan 提到的，今天我們重申我們在上一季度財報電話會議中提供的 2014 年全年收入和盈利指引。該指引表明，今年收入將下降8800萬美元至9200萬美元，調整後的EBITDA將在750萬美元至850萬美元之間，非公認會計準則攤薄後每股收益將在0.60美元至0.66美元之間。今天，我們根據今年迄今為止的業務趨勢以及當前積壓訂單的構成重申了這一指導意見。

As a reminder, key assumptions embedded in our guidance are the exclusion of the impact of any potential acquisitions, a foreign-exchange rate of $0.87 to CAD1 which reflects an unfavorable update from $0.91 when we last gave guidance in August. And lastly, our Critical Power business is expected to make a meaningful contribution towards our bottom-line this year whereas Pioneer CEP is now not budgeted to begin contributing profit until 2015.

提醒一下，我們的指導中包含的關鍵假設是排除任何潛在收購的影響，即 1 加元兌換 0.87 美元的匯率，這反映了我們上次在 8 月份給出指導時的 0.91 美元的不利更新。最後，我們的關鍵電力業務預計將為我們今年的利潤做出有意義的貢獻，而先鋒 CEP 目前的預算要到 2015 年才開始貢獻利潤。

In addition, our below the line assumptions continue to include an effective tax rate at or above 30% and a share count of approximately 7.2 million due to the full-year impact of the 2013 public offering we completed.

此外，由於我們完成的 2013 年公開發行對全年的影響，我們的線下假設繼續包括 30% 或以上的有效稅率以及約 720 萬股的股票數量。

This concludes my remarks and I will now turn the call back over to Nathan.

我的發言到此結束，現在我將把電話轉回給內森。

Okay, thank you, Andrew. Operator, it would be my pleasure to open the call for questions.

好的，謝謝你，安德魯。接線員，我很高興開始提問。

(Operator Instructions). William Bremer, Maxim Group.

（操作員說明）。威廉·布雷默，馬克西姆集團。

Good evening, Nathan, Andrew, nice quarter.

晚上好，內森，安德魯，美好的季度。

Hey, William. Hello.

嘿，威廉。你好。

So first question I have is you spoke a little bit about your CapEx or what you're seeing from your CapEx from your clients. Can you get a little more granular? Some industries, your end markets seem to be holding quite well; others maybe just slightly coming back. Can you get a little more granular there for us?

所以我的第一個問題是，您談了一下您的資本支出，或者您從客戶那裡看到的資本支出。你能說得更細一點嗎？某些行業的終端市場似乎表現良好；其他人可能只是稍微回來。您能為我們提供更詳細的信息嗎？

We don't break it down into a lot of different segments. Oil and gas has definitely been weaker this year. That's traditionally a very, very strong market for us. Mining has been weak already starting last year already. The data center market, any data-driven projects have been super strong and the general industrial conditions have been stable if not maybe something whatever it is slightly better than stable.

我們不會將其分解為許多不同的部分。今年石油和天然氣肯定疲軟。傳統上，這對我們來說是一個非常非常強大的市場。從去年開始，採礦業就已經疲軟。數據中心市場、任何數據驅動的項目都非常強勁，總體工業狀況一直穩定，甚至可能比穩定稍好一些。

More granular than that, I can't tell you. We don't serve enough to talk about steel or any of those kinds of markets or petro chem and the like.

比這更細的，我無法告訴你。我們的服務不足以談論鋼鐵或任何此類市場或石油化工等。

Right, right. Your backlog figure quite impressive. Is it safe to assume that the pricing or the mix of that backlog is better than it was say a year ago at this time?

是的是的。你們的積壓數量相當可觀。可以肯定地說，積壓訂單的定價或組合比一年前此時更好嗎？

It's probably a little bit better only because it includes much more Critical Power so that's the highest gross margin business that we have that is in the backlog. So those margins should be up somewhat. But still that business is still the backlog is driven primarily by the liquid-filled business.

它可能好一點，只是因為它包含更多的關鍵電源，因此這是我們積壓的毛利率最高的業務。因此，這些利潤率應該會有所上升。但積壓業務仍然主要是由液體填充業務驅動的。

Right, right. And then my final question and then I will turn it over is can you give us an idea what was the largest order that was realized during this quarter?

是的是的。然後我要提出的最後一個問題是，您能否告訴我們本季度實現的最大訂單是多少？

Yes, I mean I don't want to give out customer names but it was the largest order realized in the quarter was --

是的，我的意思是我不想透露客戶姓名，但這是本季度實現的最大訂單是——

If you could give just a monetary value it would be fine.

如果你能給出一個貨幣價值那就沒問題了。

Would it be [Georgia Idaho] (inaudible) Nathan?

會是[佐治亞州愛達荷州]（聽不清）內森嗎？

Yes, because I'm thinking October is not this quarter you know. That's a good question. Yes, it probably would have been a Critical Power order of about $1 million or so.

是的，因為我想十月不是這個季度，你知道。這是個好問題。是的，這可能是一份價值約 100 萬美元的 Critical Power 訂單。

A little more. It was about $1.3 million that we shipped in the third quarter one order.

再來一點。我們第三季度的一份訂單發貨量約為 130 萬美元。

Okay, quite impressive. Nice quarter, gentlemen.

好吧，相當令人印象深刻。先生們，美好的季度。

Thank you.

謝謝。

(Operator Instructions). Matt Koranda, ROTH Capital.

（操作員說明）。馬特·科蘭達，羅斯資本。

Hey, good afternoon Nathan and Andrew. Thanks for taking my questions. So just wanted to start out with your guidance. The implied guide for Q4 taking the midpoint, that $90 million midpoint, seems to imply that revenues could be down sequentially in Q4. Are you expecting maybe just a little bit of sequential weakness? Talk to us about the factors that kind of swing it around in that $88 million to $92 million range that you provided before.

嘿，內森和安德魯下午好。感謝您回答我的問題。所以只想從您的指導開始。第四季度的隱含指南取中點，即 9000 萬美元的中點，似乎意味著第四季度的收入可能會連續下降。您是否預計會出現一些連續的疲軟？請與我們談談影響您之前提供的 8800 萬至 9200 萬美元範圍的因素。

Yes, I would definitely expect if you're comparing to the third quarter, I would expect down in the fourth quarter because we're not a business that necessarily grows on a constant quarterly slope. It's driven so much by what projects we expect to ship. So while I think you can expect down from the third quarter, you should expect up from the fourth quarter of the prior year. And on that basis you should -- it should become a little bit more clear how we fall within our revenue guidance.

是的，如果你與第三季度進行比較，我肯定會預計第四季度的業績會下降，因為我們的業務不一定會以恆定的季度斜率增長。它很大程度上取決於我們期望交付的項目。因此，雖然我認為你可以預期第三季度會下降，但你應該預期比去年第四季度會上升。在此基礎上，你應該——應該更加清楚我們如何符合我們的收入指導。

Okay, that's helpful. And then could you -- just housekeeping one -- could you give us the breakdown between liquid-filled and dry type transformers during the period?

好的，這很有幫助。然後您——只是內務人員——能否給我們介紹一下這一時期的液體變壓器和乾式變壓器之間的故障？

Yes. Our Q is up online if you'd like to see it and you will definitely find it there. But for the meantime during the quarter, we did $11.7 million in liquid-filled during the quarter September as compared to dry type $10.9 million.

是的。如果您想查看我們的 Q，您一定會在那裡找到它。但就本季度而言，我們在 9 月份季度的液體填充產品銷售額為 1,170 萬美元，而乾型產品銷售額為 1,090 萬美元。

Okay, great. That's helpful. Didn't get a chance to look in the Q just yet. And then talk about some of the drivers behind the really strong Critical Power and CEP segment. You guys it looks like you're doing a really nice job growing revenue there. How much of it do you attribute to the end market improving, how much is attributed to the new sales force additions? Just talk about some of the dynamics there and what's driving it?

好的，太好了。這很有幫助。還沒有機會看Q。然後談談真正強大的關鍵能力和 CEP 細分市場背後的一些驅動因素。你們看起來在增加收入方面做得非常好。您將這其中有多少歸因於終端市場的改善，有多少歸因於新銷售隊伍的增加？只是談談那裡的一些動態以及驅動它的因素是什麼？

Yes everything is driving that market but for us it's really the sales and engineering people who are driving it. We're starting at such a low level it's such a large market, it's being driven by people going out there by pushing Pioneer, by referencing all the other projects that the (inaudible) the Critical Power business has done in their history and being successful. You see the numbers, Critical Power did $1 million for us last year in sales. This year it's going to do $5 million. Their goals for 2015 are well beyond that. Their infrastructure is in place and we push hard because we are rewarded in that segment with the kind of pricing that gets us excited.

是的，一切都在推動這個市場，但對我們來說，真正推動這個市場的是銷售和工程人員。我們從一個如此低的水平開始，這是一個如此大的市場，它是由人們通過推動先鋒、參考關鍵電力業務在其歷史上所做的所有其他項目（聽不清）並取得成功來推動的。 。你看一下數字，Critical Power 去年為我們帶來了 100 萬美元的銷售額。今年的營收將達到 500 萬美元。他們 2015 年的目標遠遠超出了這個目標。他們的基礎設施已經到位，我們努力推動，因為我們在該領域獲得了讓我們興奮的定價回報。

Great, that's helpful. And then I know you guys haven't given an outlook yet for 2015 but with the Critical Power and CEP segments up pretty substantially this year could you just talk about the growth rate, the trajectory moving into 2015?

太好了，很有幫助。然後我知道你們還沒有給出 2015 年的展望，但隨著今年關鍵電源和 CEP 細分市場的大幅增長，您能談談增長率以及進入 2015 年的軌跡嗎？

We normally give that kind of next time. But overall I'd say the liquid-filled business is looking for a strong definitely equal to or better than this coming year only because I know what the first quarter is already and how the year is shaping up. It's not the kind of business you can catch up quarters. So if your first quarter is not strong it's hard -- you can't make it up. So that's going strong.

我們通常會在下次提供這樣的服務。但總的來說，我想說，液體填充業務正在尋找絕對等於或優於來年的強勁表現，只是因為我知道第一季度已經是什麼以及今年的情況如何。這不是那種你能趕上季度的生意。因此，如果你的第一季度表現不佳，那就很難了——你無法彌補。所以這會很強勁。

Jefferson I think is going to be the big surprise. It's been very healthy this year and we're expecting a super stellar year from them next year and then the continued growth of CEP and Critical Power. So we're very, very upbeat. We haven't come out with -- we haven't done our own internal budgeting except on one page so we should come out with 2015 guidance in a couple of months.

我認為杰斐遜將是一個巨大的驚喜。今年非常健康，我們預計明年他們將迎來超級出色的一年，然後 CEP 和 Critical Power 將持續增長。所以我們非常非常樂觀。我們還沒有製定我們自己的內部預算，除了一頁紙之外，所以我們應該在幾個月內發布 2015 年指導方針。

Without giving too much away and we haven't decided on much, if you look at our investor presentation, we talk about one of our constant goals is 10% plus organic growth and sitting where we are here today in November, I'd say that's very likely for next year.

在沒有透露太多內容的情況下，我們還沒有做出太多決定，如果你看一下我們的投資者演示，我們會​​談到我們的持續目標之一是10% 以上的有機增長，我想說的是，我們在11 月份就坐在這裡明年很有可能會出現這種情況。

Great, that's very helpful guys. And then maybe you could just talk about -- I think this is a stock question that we always ask but I think it's important. So acquisitions, what are you seeing out there? Anything in the near-term pipeline? What gets you excited that's out there and the opportunities that are available?

太棒了，這對大家很有幫助。然後也許你可以談談——我認為這是我們經常問的一個常見問題，但我認為這很重要。那麼收購，你看到了什麼？近期有什麼計劃嗎？是什麼讓您感到興奮以及可用的機會？

We have two/three that we're actively engaged in and that we expect to complete in the next -- hopefully not all of the same time but over the next several months. One is significant and it's pretty much based all in Critical Power. The other is based at really broadening our scope within Jefferson and being more of a power quality business lead with just a magnetic solution and that's a very exciting opportunity. And the other would be really to do enhanced product suite and reach of the CEP business. So the pipeline is full. We have to bring them home.

我們正在積極參與其中的兩/三個項目，並預計在接下來的時間內完成——希望不是全部在同一時間完成，而是在接下來的幾個月內完成。其中一個很重要，它幾乎全部基於臨界功率。另一個目標是真正擴大我們在杰斐遜內部的範圍，並通過磁性解決方案成為電能質量業務的領導者，這是一個非常令人興奮的機會。另一個是真正增強產品套件並擴大 CEP 業務的範圍。所以管道已經滿了。我們必須把他們帶回家。

Excellent. That's helpful and I will jump back in the queue here guys.

出色的。這很有幫助，我會回到這裡的隊列中。

At this time there are no further questions over the phone lines. I would now like to turn the conference back to management for any additional or closing remarks.

目前，電話線路上沒有進一步的問題。我現在想將會議交還給管理層，以徵求任何補充或結束語。

Okay, thank you very much for your time and attention. I look forward to updating you all again in our next call and thank you all for your continued interest and more importantly your continued support of Pioneer. Thank you.

好的，非常感謝您的時間和關注。我期待在下次電話會議中再次向大家通報最新情況，感謝大家的持續關注，更重要的是感謝大家對先鋒的持續支持。謝謝。

This now concludes the presentation. Thank you for your participation.

演講到此結束。感謝您的參與。