Perimeter Solutions Inc (PRM) 2021 Q4 法說會逐字稿

Hello, and welcome to the Perimeter Solutions Fourth Quarter 2021 Earnings Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Nori Yokozuka, General Counsel. Please go ahead, Nori.

您好，歡迎參加 Perimeter Solutions 2021 年第四季財報電話會議和網路廣播。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給總法律顧問 Nori Yokozuka。請繼續，諾裡。

Thank you, operator. Good morning, everyone, And thank you for joining Perimeter Solutions' Fourth Quarter 2021 earnings call. Speaking on today's call are Haitham Khouri, Vice Chairman; Edward Goldberg, Chief Executive Officer; and Barry Lederman, Chief Financial Officer.

謝謝你，接線生。大家早安，感謝您參加 Perimeter Solutions 的 2021 年第四季財報電話會議。副主席 Haitham Khouri 在今天的電話會議上發言。愛德華‧戈德堡，執行長；和財務長巴里·萊德曼。

We want to remind anyone who may be listening to a replay of this call that all statements made are as of today, March 24, 2022. And these statements have not been nor will they be updated subsequent to today's call. Also, today's call may contain forward-looking statements. These statements made today are based on management's current expectations, assumptions and beliefs about our business and the environment in which we operate, and our actual results may materially differ from those expressed or implied on today's call. Please review our SEC filings for a more complete discussion of factors that could impact our results.

我們想提醒任何可能正在收聽本次電話會議重播的人，所有聲明均截至今天（2022 年 3 月 24 日）。此外，今天的電話會議可能包含前瞻性陳述。今天發表的這些聲明是基於管理層目前對我們的業務和營運環境的預期、假設和信念，我們的實際結果可能與今天電話會議中明示或暗示的結果有重大差異。請查看我們向 SEC 提交的文件，以更完整地討論可能影響我們結果的因素。

The company would also like to advise you that during the call, we will be referring to non-GAAP financial measures, including EBITDA. Please refer to our earnings press release and presentation as well as the 8-K, both of which will be available on our website and on the SEC's website.

該公司也想提醒您，在電話會議中，我們將提及非公認會計準則財務指標，包括 EBITDA。請參閱我們的收益新聞稿和簡報以及 8-K，兩者均可在我們的網站和 SEC 網站上取得。

With that, I will turn the call over to Haitham Khouri, Vice Chairman.

接下來，我將把電話轉給副​​主席海瑟姆‧庫裡 (Haitham Khouri)。

Thanks, Nori. Good morning, everybody, and thanks for calling in today. I'll briefly cover 3 topics, before turning the call over to Eddie and Barry. First, I'll make some summary comments on our strategy. Next, I'll briefly comment on our fourth quarter performance in Fire Safety. Finally, I'll close by sharing a few thoughts on 2022.

謝謝，諾裡。大家早安，感謝您今天打電話。在將電話轉給艾迪和巴里之前，我將簡要介紹 3 個主題。首先，我將對我們的策略做一些總結性評論。接下來我簡單評估一下我們第四季在消防安全方面的表現。最後，我將分享一些關於 2022 年的想法作為結束。

Starting with our strategy on Slide 3. As you've heard from us before, our goal is to deliver private equity-like returns with the liquidity of a public market. We plan to attain this goal by owning, operating and growing uniquely high-quality businesses. We define uniquely high-quality businesses through 5 very specific economic criteria: one, recurring and predictable revenue streams; two, long-term secular growth tailwinds; three, products that account for critical but small portions of larger value streams; fourth, significant free cash flow generation with high returns on tangible capital; and five, the potential for opportunistic consolidation. We believe that these economic criteria are present at Perimeter as described on Slide 4, and we'll also use these criteria to evaluate any future acquisitions.

從幻燈片 3 上的策略開始。我們計劃透過擁有、經營和發展獨特的高品質企業來實現這一目標。我們透過 5 個非常具體的經濟標準來定義獨特的高品質業務：一是經常性且可預測的收入流；二、長期長期成長順風；第三，在較大價值流中佔關鍵但小部分的產品；第四，顯著的自由現金流產生和有形資本的高回報；第五，機會性整合的潛能。我們相信這些經濟標準已在 Perimeter 中體現，如幻燈片 4 中所述，我們也將使用這些標準來評估任何未來的收購。

As described on Slide 5, we seek to drive long-term equity value creation via consistent improvement in our 3 operational value drivers, which are profitable new business, continual cost improvement, and pricing to reflect the value we provide, as well as an intent focus on the allocation of our capital and the management of our capital structure.

如投影片5 所述，我們尋求透過持續改進3 個營運價值驅動因素來推動長期股權價值創造，這三個驅動因素是盈利的新業務、持續的成本改善以及反映我們提供的價值的定價以及意圖重點在於資本配置和資本結構管理。

Now to address our Q4 performance in Fire Safety. As we stated on our prior call, the first and fourth quarters typically contribute a very modest portion of our Fire Safety segment's annual adjusted EBITDA. Regarding the fourth quarter specifically, if a few late season fire events occur in North America and/or if Australia has an active early fire season, Fire Safety tends to have a strong Q4. If these potential late-season North American fire events don't occur, however, and/or if Australia has a slow December, Fire Safety tends to have a slow Q4. Q4 2021 witnessed extremely low fire activity in North America, with acres burned down over 50% year-over-year and almost no December fire season in Australia. As such, Q4 2021 was a very slow quarter for us. Because the numbers are relatively small in Q4 and Q1, the year-to-year variations can appear large. We caution investors against reading too much into annual variations in our Q4 and Q1 Fire Safety results.

現在來談談我們第四季在消防安全方面的表現。正如我們在先前的電話會議中所說，第一季和第四季通常只占我們消防安全部門年度調整後 EBITDA 的一小部分。具體到第四季度，如果北美發生一些晚季火災事件和/或澳洲出現活躍的早期火災季節，消防安全往往會在第四季度表現強勁。然而，如果這些潛在的北美晚季火災事件沒有發生，和/或澳洲 12 月的情況緩慢，消防安全第四季的情況往往會緩慢。 2021 年第四季度，北美火災活動極少，燒毀面積比去年同期超過 50%，澳洲幾乎沒有 12 月火災季節。因此，2021 年第四季對我們來說是一個非常緩慢的季度。由於第四季度和第一季的數字相對較小，因此每年的變化可能會顯得很大。我們提醒投資者不要過度解讀第四季和第一季消防安全業績的年度變化。

Finally, I'll close with a few comments on 2022. As we mentioned on our last call, we expect our Fire Safety segment to grow volume mid- to high single digits annually over the long term. We remind investors, however, that within the highly predictable long-term secular growth that we expect in Fire Safety, there exists an element of year-to-year variability tied primarily to the intensity of the North American fire season, which we can't predict. As such, we don't provide guidance on a quarterly or annual basis. Now with that said, I'll share with investors some of our current thinking around 2022.

最後，我將以對 2022 年的一些評論作為結束語。然而，我們提醒投資者，在我們預期的消防安全領域高度可預測的長期長期增長中，存在主要與北美火災季節強度相關的逐年變化因素，我們可以”預測。因此，我們不提供季度或年度指導。話雖如此，我將與投資者分享我們目前對 2022 年左右的一些想法。

First, on Fire Safety. We consider 2021 to be a fairly normalized year in Fire Safety, with acreage burned across our markets very roughly in line with the long-term trend line. As such, assuming another roughly around trend line year in 2022, we believe that mid- to high single-digit volume growth is not an unreasonable expectation for this segment.

第一，關於消防安全。我們認為 2021 年是消防安全相當正常的一年，整個市場的燒毀面積與長期趨勢線大致相符。因此，假設 2022 年又是一個大致在趨勢線附近的年份，我們認為該細分市場的中高個位數銷售成長並非不合理的預期。

Next, on Oil Additives. We're encouraged by our initial findings in this segment and believe that we're likely to see some upside in 2022 relative to our expectation of flat revenue and adjusted EBITDA.

接下來，關於石油添加劑。我們對這一領域的初步調查結果感到鼓舞，並相信，相對於我們對收入持平和調整後 EBITDA 的預期，我們可能會在 2022 年看到一些上行空間。

Moving on to consolidated adjusted EBITDA. We believe that adjusted EBITDA growth in either dollar terms or percent terms will be the best metric by which to judge our 2022 performance. Conversely, while we expect to expand underlying adjusted EBITDA margins in both our segments this year, we believe that adjusted EBITDA margins can be a less informative measure of our 2022 performance. This is because we may experience significant cost inflation in 2022, a meaningful portion of which we expect to pass through. The inflation pass-throughs, however, can distort our reported margin performance as 0 margin revenue hits the P&L and can artificially compress margins. The more cost inflation we experience and pass through, the lower our reported adjusted EBITDA margin will, therefore, appear. Adjusted EBITDA growth, however, should generally be unimpacted by these inflation pass-throughs.

接下來是合併調整後的 EBITDA。我們相信，以美元或百分比計算的調整後 EBITDA 成長將是判斷我們 2022 年業績的最佳指標。相反，雖然我們預計今年兩個部門的基本調整後 EBITDA 利潤率都會擴大，但我們認為，調整後 EBITDA 利潤率對於衡量我們 2022 年業績的資訊量可能較少。這是因為我們可能會在 2022 年經歷顯著的成本通膨，我們預計將度過其中的一個有意義的部分。然而，通膨傳導可能會扭曲我們報告的利潤率表現，因為零利潤收入會影響損益表，並可能人為壓縮利潤率。我們經歷和經歷的成本通膨越多，我們報告的調整後 EBITDA 利潤率就會越低。然而，調整後的 EBITDA 成長通常不會受到這些通膨傳導的影響。

In closing, and remaining on the topic of 2022 consolidated adjusted EBITDA, assuming a roughly on-trend line 2022 fire season and making our best assumptions around Oil Additives performance, inflation pass-throughs, underlying margin performance, excluding the impact of inflation pass-throughs, incremental public company costs and other financial assumptions, we expect consolidated 2022 adjusted EBITDA growth consistent with, and perhaps above, our long-term framework of mid-teens growth.

最後，繼續討論 2022 年綜合調整後 EBITDA 的主題，假設 2022 年火災季節大致符合趨勢線，並對石油添加劑業績、通膨傳導、基本利潤率表現（不包括通膨傳導的影響）做出最佳假設。考慮到營業額、增量上市公司成本和其他財務假設，我們預期2022 年調整後的綜合EBITDA 成長與我們的中雙位數成長的長期框架一致，甚至可能更高。

And with that, I'll turn the call over to Eddie.

說完，我會把電話轉給艾迪。

Thanks, Haitham. I'll start by discussing our most notable accomplishments of 2021. In an environment where early aggressive aerial initial attack is critical for keeping fire small, saving communities and protecting people's lives, our customers depend on us to load every air tanker 100% of the time, and we take this mission very seriously. We've built, over many years, a supply chain network that includes supply of raw materials, production, distribution, tanker-based operations and delivers near-perfect reliability year in and year out. 2021 was no exception. I've mentioned this before, most tanker bases, the airports where air tankers are loaded, only have enough inventory for 1, maybe 2 days of operation. Our robust and extensive network delivers retardant nearly anywhere in North America in hours to support firefighting operations. This level of service has been our focus and our mission for many years. We have proven, over the last 2 very challenging years, our ability to respond even in the most difficult times.

謝謝，海瑟姆。我將首先討論我們2021 年最顯著的成就。 % 的貨物時間，我們非常認真地對待這項使命。多年來，我們已經建立了一個供應鏈網絡，包括原材料供應、生產、分銷、基於油輪的運營，並年復一年地提供近乎完美的可靠性。 2021 年也不例外。我之前提到過，大多數加油機基地，即裝載空中加油機的機場，其庫存只夠運行 1 天、也許 2 天。我們強大而廣泛的網路可在數小時內在北美幾乎任何地方提供阻燃劑，以支援消防行動。多年來，這種服務水準一直是我們的重點和使命。在過去充滿挑戰的兩年裡，我們已經證明，即使在最困難的時期，我們也有能力做出反應。

In 2021, when many companies could not get materials, find labor to make their products or get trucks to deliver them, and when lead times ballooned, we shipped thousands of truckloads of retardant during the fire season successfully and without disruption. This is the performance our customers expect, and they recognize that we are uniquely able to perform in a way that no one else can. And while this is all very matter of fact, in what we do day in, day out, we see the extraordinary ways Perimeter people support firefighters and their communities and the positive impact we have on people's lives. Here are just a few examples.

2021 年，當許多公司無法獲得材料、找不到勞動力來製造產品或讓卡車運送產品、交貨時間激增時，我們在火災季節成功運送了數千卡車阻燃劑，沒有中斷。這是我們的客戶所期望的性能，他們認識到我們能夠以其他人無法做到的方式提供獨特的性能。雖然這都是事實，但在我們日復一日的工作中，我們看到了 Perimeter 人員支持消防員及其社區的非凡方式，以及我們對人們生活的積極影響。這裡僅舉幾個例子。

The Dixie Fire burned over 963,000 acres and significantly damaged a number of California towns, including Greenville, which was nearly destroyed, and Chester. The Chester tanker base was threatened and forced to close, and 5 of our tanker base operators lost their homes. Perimeter brought in mobile retardant bases to support firefighting operations, and those 5 Chester tanker base operators came back to work to ensure that we could continue aerial operations.

迪克西大火燒毀了超過 963,000 英畝的土地，嚴重損害了加州的許多城鎮，包括幾乎被摧毀的格林維爾和切斯特。切斯特油輪基地受到威脅並被迫關閉，我們的 5 名油輪基地操作員失去了家園。 Perimeter 引進了移動式阻燃劑基地來支援消防行動，切斯特油輪基地的 5 名操作員也返回工作崗位，以確保我們能夠繼續進行空中行動。

Early in the season, fires raged in Mexico. We partnered with 10 Tanker who flies 4 DC-10 Very Large Airtankers, to quickly set up a mobile operation in Texas and support aerial firefighting operations and protect a highly populated village in the state of Nuevo Leon. In just a few days, we delivered over 100,000 gallons of retardant.

本季初期，墨西哥大火肆虐。我們與擁有 4 架 DC-10 超大型空中加油機的 10 架加油機合作，在德克薩斯州快速建立移動行動，支持空中消防行動並保護新萊昂州人口稠密的村莊。在短短幾天內，我們交付了超過 100,000 加侖的阻燃劑。

And in an innovative new program, we partnered with Orange County Fire Authority in Southern California to stand up a new quick-reaction force capable of retardant operations 24 hours a day. Night retardant operations were completed on a number of incidents, keeping potentially devastating fires small and saving lives and property.

在一項創新計畫中，我們與南加州橘郡消防局合作，建立了一支新的快速反應部隊，能夠每天 24 小時進行阻燃作業。在多起事故中完成了夜間阻燃行動，將潛在的毀滅性火災控制在較小範圍，挽救了生命和財產。

These are just a few examples of the good that our company and our people do every day in partnership with firefighters and communities.

這些只是我們公司和我們的員工每天與消防員和社區合作所做的善事的幾個例子。

I'm also very proud of the financial results we delivered last year, especially in our Fire Safety segment. 2020 witnessed the highest acres burned in recorded U.S. history, as approximately 59,000 wildfires consumed over 10 million acres. 2021 was a far more normalized year, where a similar number of wildfires consumed a little over 7 million acres or 30% fewer acres burned year-over-year. Against this challenging comparison, we grew our 2021 Fire Safety adjusted EBITDA by 5%. And we believe that our ability to grow adjusted EBITDA, in light of a 30% lower U.S. acres burned, was the result of significant contributions from our secular volume drivers, namely a continued strategy of aggressive aerial attack by our customers and continued growth in the air tanker fleet.

我也對我們去年的財務表現感到非常自豪，特別是在我們的消防安全部門。 2020 年，約 59,000 場野火燒毀了超過 1,000 萬英畝土地，創下了美國歷史上燒毀面積最高的一年。 2021 年是更正常的一年，相似數量的野火燒毀了略多於 700 萬英畝的土地，或同比減少了 30% 的燒毀面積。與這項具有挑戰性的比較相比，我們 2021 年消防安全調整後 EBITDA 成長了 5%。我們相信，鑑於美國燒毀面積減少了 30%，我們調整後 EBITDA 的成長能力是我們長期銷售驅動因素的重大貢獻的結果，即我們的客戶持續採取積極的空襲戰略以及業務量的持續增長。機隊。

Our Fire Safety results were also aided by our strong performance in our international markets and our long-term strategy of pricing to reflect the value we provide to our customers. The fourth quarter was challenging for our Fire Safety segment. Fire activity was extremely limited in North America, with U.S. acres burned down approximately 55% year-over-year. Australia had a wet December and, therefore, experienced essentially no early fire season. Although Fire Safety results again significantly outpaced acres burned, the significant decline in acres burned, coupled with the inherently low-margin nature of the fourth quarter, led our segment results to decline year-over-year. Q4 Fire Safety revenue declined 23%, while Q4 adjusted EBITDA declined materially.

我們在國際市場上的強勁表現以及反映我們為客戶提供的價值的長期定價策略也有助於我們的消防安全業績。第四季對我們的消防安全部門來說充滿挑戰。北美地區的火災活動極為有限，美國面積較去年同期燒毀面積約 55%。澳洲十二月氣候潮濕，因此基本上沒有經歷提前的火災季節。儘管消防安全業績再次大幅超過燒毀面積，但燒毀面積的大幅下降，加上第四季度固有的低利潤率，導致我們的部門業績同比下降。第四季消防安全收入下降 23%，第四季調整後 EBITDA 大幅下降。

Fluctuations based on the intensity of the fire season in a given quarter is a feature of our Fire Safety business and can be especially pronounced in the much smaller fourth and first quarters, as evidenced this Q4.

基於特定季度火災季節強度的波動是我們消防安全業務的一個特點，在規模小得多的第四季度和第一季度尤其明顯，第四季度就證明了這一點。

Turning to our OA segment, which accounted for 17% of our 2021 consolidated EBITDA. OA revenue increased 7% for the year and declined 11% in the fourth quarter. The growth for the year was primarily due to lapping COVID impacts from 2020. The decline in the quarter was primarily due to the timing and pace of customer orders. OA-adjusted EBITDA declined 2% for the year and 16% for the quarter. As we discussed on our prior call, second half 2021 segment margins were impacted by materially higher costs for certain raw materials as well as for transportation. We also mentioned that we expected to pass on these raw material and transportation costs in 2022, and therefore, these headwinds will be transitory. We're confident that we've passed substantially all of these costs through as of Q1 2022. In fact, as Haitham alluded to, we're optimistic around this year's potential performance in Oil Additives.

轉向我們的 OA 部門，該部門占我們 2021 年合併 EBITDA 的 17%。 OA 營收全年成長 7%，第四季下降 11%。今年的成長主要是由於 2020 年以來新冠疫情的影響。 OA 調整後 EBITDA 全年下降 2%，本季下降 16%。正如我們在之前的電話會議中討論的那樣，2021 年下半年的分部利潤率受到某些原材料和運輸成本大幅上漲的影響。我們也提到，我們預計將在 2022 年轉嫁這些原材料和運輸成本，因此，這些不利因素將是暫時的。我們有信心，截至 2022 年第一季度，我們基本上已經轉嫁了所有這些成本。

And finally, I'll address the impact of the supply chain disruptions associated with the situation in Ukraine. Both of our segments are experiencing raw material disruptions directly related to this situation. However, given our policy of multi-sourcing our key inputs, we currently expect minimal disruption to our ability to serve our customers and a very modest to immaterial impact on our 2022 results.

最後，我將討論與烏克蘭局勢相關的供應鏈中斷的影響。我們的兩個部門都在經歷與這種情況直接相關的原材料中斷。然而，考慮到我們對關鍵投入進行多方採購的政策，我們目前預計對我們服務客戶的能力的干擾最小，並且對我們 2022 年業績的影響非常小到無關緊要。

With that, I would now like to turn over the call to our Chief Financial Officer, Barry Lederman.

現在，我想將電話轉給我們的財務長 Barry Lederman。

Thanks, Eddie. Turning to Slide 7. Full year 2021 sales in our Fire Safety segment increased 7% to $261.2 million as compared to $245 million in the prior year. Fourth quarter sales in our Fire Safety segment decreased 23% to $23.9 million as compared to $31.1 million in the prior year. Substantially all revenue growth in our segment was organic in both the fourth quarter and full year periods.

謝謝，艾迪。轉向幻燈片 7。我們消防安全部門第四季的銷售額下降 23%，至 2,390 萬美元，而去年同期為 3,110 萬美元。在第四季度和全年期間，我們部門的幾乎所有收入成長都是有機的。

Full year 2021 adjusted EBITDA in our Fire Safety segment increased 5% to $117.9 million as compared to $112 million in 2020. Fourth quarter adjusted EBITDA in our Fire Safety segment decreased 87% to $1.2 million as compared to $9.2 million in the prior year.

2021 年全年，我們消防安全部門調整後的EBITDA 成長了5%，達到1.179 億美元，而2020 年為1.12 億美元。美元，而前一年為920 萬美元。

Now switching to Oil Additives. Full year 2021 sales increased 7% to $101.2 million as compared to $94.6 million in the prior year. Fourth quarter sales decreased 11% to $22 million as compared to $24.8 million in the prior year. Full year 2021 adjusted EBITDA decreased 2% to $23.6 million as compared to $24 million in 2020. Fourth quarter adjusted EBITDA decreased 17% to $5.6 million as compared to $6.7 million in the prior year.

現在轉向油添加劑。 2021 年全年銷售額成長 7%，達到 1.012 億美元，而上一年為 9,460 萬美元。第四季銷售額較上年同期的 2,480 萬美元下降 11%，至 2,200 萬美元。 2021 年全年調整後 EBITDA 下降 2%，至 2,360 萬美元，而 2020 年為 2,400 萬美元。

Now for the consolidated entity. Full year 2021 sales increased 7% to $362.3 million in 2021 as compared to $339.6 million in 2020. Fourth quarter sales decreased 18% to $45.9 million during the fourth quarter as compared to $55.8 million in the prior year quarter. Full year 2021 adjusted EBITDA increased 4% to $141.4 million in 2021 as compared to $136 million in 2020. Fourth quarter adjusted EBITDA decreased 57% to $6.8 million during the fourth quarter as compared to $16 million in the prior year quarter.

現在是合併實體。 2021 年全年銷售額成長 7%，至 3.623 億美元，而 2020 年為 3.396 億美元。 2021 年全年調整後 EBITDA 成長 4%，至 2021 年的 1.414 億美元，而 2020 年為 1.36 億美元。

Interest expense in the quarter was approximately $21.5 million, of which $12.4 million is noncash deferred financing fees. As I mentioned on our prior call, we expect full year 2022 interest expense of approximately $40 million.

本季利息支出約 2,150 萬美元，其中 1,240 萬美元為非現金遞延融資費用。正如我在之前的電話會議中提到的，我們預計 2022 年全年利息支出約為 4000 萬美元。

Depreciation was $2 million in Q4, while amortization expense was $14 million. We expect tax deductible depreciation and amortization of approximately $7 million to $10 million in 2022. We had a $3.7 million tax benefit in the fourth quarter. Based on the current information we have, the expected ongoing effective tax rate, excluding lost jurisdictions that we are unable to utilize the benefits and excluding the impacts from purchase accounting as well as transaction-related costs, will be approximately 26%.

第四季折舊為 200 萬美元，攤提費用為 1,400 萬美元。我們預計 2022 年可扣稅折舊和攤提約為 700 萬至 1000 萬美元。根據我們目前掌握的信息，預計持續有效稅率（不包括我們無法利用這些好處的失去的司法管轄區，也不包括採購會計以及交易相關成本的影響）約為 26%。

CapEx during the quarter was approximately $3 million. We expect approximately $10 million of CapEx in 2022. As a reminder, we suggest investors model the annual change in working capital going forward at approximately 10% to 20% of the change in sales, such that a $10 million change in sales should lead to a $1 million to $2 million change in working capital. Please note the timing of when the sales occur will influence these numbers. We ended the fourth quarter with approximately $675 million of senior notes and cash approximately of $226 million. We currently have approximately 163 million shares outstanding.

本季的資本支出約為 300 萬美元。我們預期2022 年的資本支出約為1,000 萬美元。導致營運資金 100 萬至 200 萬美元的變化。請注意，銷售發生的時間將影響這些數字。截至第四季末，我們持有約 6.75 億美元的優先票據和約 2.26 億美元的現金。我們目前擁有約 1.63 億股已發行股票。

With that, I'll hand it back over to the operator for Q&A. Thank you.

這樣，我會將其交還給操作員進行問答。謝謝。

(Operator Instructions) Our first question today is coming from Josh Spector from UBS.

（操作員說明）今天我們的第一個問題來自瑞銀集團的 Josh Spector。

I guess, first, maybe to drill into some of the comments on 2022 EBITDA, and I understand the volatility year-on-year, and you're trying to give some directional thoughts here. But just wondering what drives the comment on potentially higher than your long-term algorithm potentially playing out next year, particularly in light with the comment that you mentioned on higher public company costs. Is there something -- is it a price [ROCE] recovery? Is there some new product launch? Or what drives the confidence in that comment this early in the year?

我想，首先，也許要深入研究一些關於2022年EBITDA的評論，我了解同比的波動性，而你試圖在這裡給出一些方向性的想法。但只是想知道是什麼推動了這一評論可能高於明年可能出現的長期演算法，特別是考慮到您提到的關於上市公司成本上升的評論。有什麼東西——是價格 [ROCE] 回升嗎？有新產品推出嗎？或者是什麼讓人們對今年年初的評論充滿信心？

Yes. Thanks for the question. Yes, we're very confident that our secular drivers that we look at each year in terms of severity of the fire season, the aggressive initial aerial attack that the agencies are using as a primary policy for fighting fire, along with increased air tanker fleets, are going to continue to grow the business as we expect. We do expect to be able to recover all of our increased costs as well. And we're hitting our value drivers very hard in terms of driving price for the value that we provide in terms of reducing cost and looking at new business. So with all of those factors, we are very confident that we will be able to perform at or above what we expect in the long term -- subject, of course, to the severity of the fire season, which is the biggest variable on the business.

是的。謝謝你的提問。是的，我們非常有信心，我們每年都會根據火災季節的嚴重程度、各機構將積極的初始空中攻擊作為救火的主要政策以及空中加油機機隊的增加來審視我們的長期驅動因素，將按照我們的預期繼續發展業務。我們確實希望能夠收回所有增加的成本。我們正在非常努力地打擊我們的價值驅動因素，以推動我們在降低成本和尋找新業務方面提供的價值的價格。因此，考慮到所有這些因素，我們非常有信心，從長遠來看，我們將能夠達到或高於我們的預期——當然，這取決於火災季節的嚴重程度，這是最大的變數。

Okay. I guess maybe just a follow-up then. In terms of some of the discrete items outside of the fire season and how the intensity there, can you quantify any comments of when we look year-on-year '22 versus '21, is there a line item we should be thinking about for higher public company costs that may be different than what was filed earlier? And then also on logistics of raw materials, how negative of an impact was that last year? And how positive could that recovery be next year? And is it more in the Oil Additives? Or does it also apply to the fire retardants business as well?

好的。我想也許只是後續行動。就火災季節之外的一些離散項目以及那裡的強度而言，您能否量化我們對 22 年與 21 年同比情況的任何評論，是否有一個我們應該考慮的項目更高的上市公司成本可能與之前提交的不同？然後在原料物流方面，去年的影響有多大？明年的復甦會有多積極？油品添加劑中的含量是否更多？或者它也適用於阻燃劑業務嗎？

Yes. As far as public company costs, we're not going to get into the details of our cost structure, but it is -- those are costs that we factored in to our model and our forecast for 2022.

是的。就上市公司成本而言，我們不會詳細介紹成本結構，但我們已將這些成本納入我們的模型和 2022 年的預測中。

In the Fire Safety business, as we discussed the last time, we were able to recover our increased raw material costs in 2021. We expect to do the same in 2022. Of course, you can see what's going on in inflation this year. So we do expect that cost recovery to be more significant this year than last year.

在消防安全業務方面，正如我們上次討論的那樣，我們能夠在 2021 年收回增加的原材料成本。因此，我們確實預計今年的成本回收將比去年更加顯著。

And in Oil Additives, as we mentioned previously, we did see in the fourth quarter, in particular, a significant increase in both raw material and transportation costs, which did have a lag in recovery. As we mentioned, we expected to begin recovering those costs in the first quarter of '22, which we are successfully doing now, and we're optimistic that we'll be able to recover all of those costs as we go forward into the year.

而在石油添加劑方面，正如我們之前提到的，我們確實在第四季度看到，特別是原材料和運輸成本都大幅增加，復甦確實存在滯後。正如我們所提到的，我們預計將在 22 年第一季開始收回這些成本，我們現在正在成功地做到這一點，並且我們樂觀地認為，隨著我們進入今年，我們將能夠收回所有這些成本。

I guess if I could squeeze in one more. I guess, I noticed you guys had announcements of a lot of new partnerships on the PHOS-CHEK FORTIFY products. Just curious if you could talk about that? Like where sales are in that business now? And what that market can kind of grow to in your view longer term? I'm assuming that opens up kind of another avenue, which is different than what you've had in the past. So I'm curious if you could kind of give some expanded thoughts on that.

我想我是否可以再擠一擠。我想，我注意到你們宣布了許多關於 PHOS-CHEK FORTIFY 產品的新合作關係。只是好奇你能否談談這個？例如該業務現在的銷售狀況如何？在您看來，從長遠來看，這個市場會發展到什麼程度？我認為這開闢了另一條途徑，與過去的途徑不同。所以我很好奇你是否能就此發表一些擴展的想法。

Sure. Yes, thanks for that question. The prevention and protection business is a big initiative for us going forward. Recognize that it is a start-up business for us. The FORTIFY product was just qualified kind of mid last year. So we're just kind of getting started. I would say sales in 2021 were very modest, low single-digit millions of dollars. We do expect to see significant growth year-over-year. And we do believe -- although I don't want to give you a specific number, I do believe that could be a material business over the coming 4, 5, 6, 10 years.

當然。是的，謝謝你提出這個問題。防護業務是我們前進的一大舉措。認識到這對我們來說是一項新創業務。 FORTIFY 產品去年年中才剛合格。所以我們才剛開始。我想說 2021 年的銷售額非常有限，只有數百萬美元。我們確實預計會出現同比顯著增長。我們確實相信——雖然我不想給你一個具體數字，但我確實相信這可能在未來 4、5、6、10 年裡成為一項重要業務。

In terms of the announcement that we made with partnerships, that business is focused on large potentially hazardous industries as well as more local service where we engage partners to provide protection for communities. That was just 1 example of a partnership that we established with a company that provides that kind of service. So it is a multifaceted approach to the market.

就我們與合作夥伴發布的公告而言，該業務專注於大型潛在危險行業以及更多本地服務，我們與合作夥伴合作為社區提供保護。這只是我們與提供此類服務的公司建立合作關係的一個例子。因此，這是一種面向市場的多方面方法。

Our next question is coming from Brian DiRubbio from Baird.

我們的下一個問題來自貝爾德 (Baird) 的布萊恩·迪魯比奧 (Brian DiRubbio)。

A few questions for myself. Just on raw material inflation, can you point to any of the specific raw materials where you're seeing the worst of that inflation right now?

問我自己幾個問題。就原物料通膨而言，您能指出目前通膨最嚴重的具體原料嗎？

Well, we are closely tied in our businesses to the commodities market. And you can see what's going on in the commodities industry. That industry has seen significant inflation over the last few months, continues to see some inflation. Again, we believe we've got a good handle on what's going on with our raw materials. We are multi-sourced. So we have -- where we feel very secure in our supply and the ability of using competition to keep those increases to a manageable level. And of course, whatever increases we do experience, we do expect to be able to pass those through.

嗯，我們的業務與大宗商品市場緊密相連。您可以看到商品行業正在發生的事情。該行業在過去幾個月中出現了嚴重的通貨膨脹，並且繼續出現一定程度的通貨膨脹。同樣，我們相信我們已經很好地掌握了原材料的情況。我們是多源的。因此，我們對我們的供應感到非常安全，並且有能力利用競爭將這些成長保持在可管理的水平。當然，無論我們經歷什麼成長，我們都希望能夠度過這些難關。

Okay. Nothing more specific on the particular raw materials that you're exposed to? Think in your disclosures you had, phosphate was your largest?

好的。關於您接觸到的特定原料沒有更具體的資訊嗎？想一想，在您所揭露的資訊中，磷酸鹽是您最大的？

Yes. So ammonium phosphate is the largest raw material that we use in the Fire Safety business. It's something we keep a close eye on those -- the data regarding ammonium phosphate pricing and supply is well published. So you can kind of see what's going on in that market. We are a player in that market. But again, as we look at our supply, we get supply from a number of different suppliers. We've got the benefit of a pretty good competition between those suppliers, and we are able to pass those costs through.

是的。因此，磷酸銨是我們在消防安全業務中使用的最大原料。這是我們密切關注的事情——有關磷酸銨定價和供應的數據已經公佈。所以你可以看到那個市場正在發生什麼事。我們是這個市場的參與者。但同樣，當我們審視我們的供應時，我們從許多不同的供應商那裡獲得了供應。我們從這些供應商之間的良好競爭中受益，並且我們能夠轉嫁這些成本。

Okay. That's helpful. Just on -- I know during the last call, there was a little bit of a back and forth on how much you're going to disclose. And I know you're reticent to provide too much detail, especially as it pertains to volume. But could you possibly let us know like how many fire events occurred in the fourth quarter of 2021 versus 2020?

好的。這很有幫助。就這樣——我知道在上次通話期間，對於您要披露多少內容存在一些來回爭論。我知道您不願提供太多細節，尤其是與數量相關的細節。但您能否告訴我們，2021 年第四季與 2020 年相比，發生了多少起火災事件？

That data is published on the U.S. Fire Service website. I would refer to them. I don't have those numbers in front of me, but they publish the statistics for a number of fires and acres burned. I believe the number of fires was about consistent with history; the number of acres burned slightly below the 10-year average in the U.S., but not too far off of the trend line.

數據發佈在美國消防局網站上。我會參考他們。我面前沒有這些數字，但他們公佈了火災數量和燒毀面積的統計數據。我相信火災的數量與歷史大致相符；燒毀面積略低於美國十年平均水平，但與趨勢線相去不遠。

Okay. That would be helpful. And then what are you seeing in the M&A environment right now?

好的。那會有幫助的。那麼您現在在併購環境中看到了什麼？

Brian, this is Haitham. We don't want to comment specifically on what we see on every given call. That said, we're active. We're looking. We're very focused on it. And when we have something, clearly, the market will see it from us.

布萊恩，這是海瑟姆。我們不想具體評論我們在每次通話中看到的情況。也就是說，我們很活躍。我們正在尋找。我們非常關注它。顯然，當我們擁有某種東西時，市場就會從我們身上看到它。

Okay. And just finally, I know you've -- previous caller asked about the pretreatment in the protection solutions. That's going to be obviously a small portion, but as you know, probably given some of the large insurance companies pulling back fire insurance for homeowners for fires, that should be a great business for you guys going forward. So excited to hear about that growth in the coming quarters and years.

好的。最後，我知道您之前的來電者詢問了保護解決方案中的預處理問題。這顯然只是一小部分，但正如你所知，可能考慮到一些大型保險公司取消了為房主提供火災保險的保險，這對你們來說應該是一項偉大的業務。很高興聽到未來幾個季度和幾年的成長。

We agree. Thanks. We agree.

我們同意。謝謝。我們同意。

We reached the end of our question-and-answer session. I'd like to turn the floor back over to Edward for any further closing comments.

我們的問答環節結束了。我想將發言權交還給愛德華，以徵求進一步的結論。

Great. Thank you. I appreciate everybody calling into our earnings call. Look forward to talking to you again next quarter. Thank you.

偉大的。謝謝。我感謝大家撥打我們的財報電話會議。期待下個季度再次與您交談。謝謝。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路並度過美好的一天。我們感謝您今天的參與。