RBC Bearings Inc (RBC) 2023 Q1 法說會逐字稿

Hello, and welcome to the RBC Bearings Q1 Fiscal Year 2023 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 RBC Bearings 2023 財年第一季財報電話會議。 （操作員指示）溫馨提示：本次會議正在錄製中。

It's now my pleasure to turn the call over to Josh Carroll, Investor Relations. Please go ahead.

現在，我很高興將電話轉給投資者關係部的喬希·卡羅爾 (Josh Carroll)。請講。

Thank you, operator. Good afternoon, and thank you for joining us for RBC Bearings' fiscal 2023 first quarter earnings conference call. With me on the call today is Dr. Michael J. Hartnett, Chairman, President and Chief Executive Officer; Daniel Bergeron, Director, Vice President and Chief Operating Officer; and Robert Sullivan, Vice President and Chief Financial Officer.

謝謝接線生。下午好，感謝您參加RBC Bearings 2023財年第一季財報電話會議。今天與我一起參加電話會議的有：董事長、總裁兼執行長Michael J. Hartnett博士；董事、副總裁兼營運長Daniel Bergeron；以及副總裁兼財務長Robert Sullivan。

Before beginning today's call, let me remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected or implied due to a variety of factors.

在開始今天的電話會議之前，請允許我提醒您，今天發表的一些聲明將具有前瞻性，並且是根據 1995 年《私人證券訴訟改革法》做出的。由於各種因素，實際結果可能與預測或暗示的結果有重大差異。

We refer you to RBC Bearings' recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition. These factors are also described in greater detail in the press release and on the company's website. In addition, reconciliation of GAAP and non-GAAP financial information is included as part of the release and is available on the company's website.

我們建議您參閱 RBC Bearings 近期向美國證券交易委員會 (SEC) 提交的文件，以更詳細地了解可能影響公司未來營運績效和財務狀況的風險。這些因素也在新聞稿和公司網站上進行了更詳細的闡述。此外，新聞稿中還包含 GAAP 和非 GAAP 財務資訊的對帳表，可在公司網站上查閱。

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

現在，我將把電話轉給哈特內特博士。

Thank you, Josh, and good morning all. I'll start off by saying that net sales for the first quarter of fiscal '23 were $354.1 million versus $156.2 million for the same period last year, an increase of 126%. For the first quarter of '23, sales of industrial products represented 72% of net sales, aerospace products 28%. Gross margin for the quarter was $141.2 million, 39.9% of net sales compares to $63.8 million or 40.8% for the same period last year.

謝謝喬希，大家早安。首先我想說的是，2023財年第一季的淨銷售額為3.541億美元，去年同期為1.562億美元，成長了126%。 2023財年第一季，工業產品銷售額佔淨銷售額的72%，航空航太產品銷售額佔28%。本季毛利率為1.412億美元，佔淨銷售額的39.9%，去年同期為6,380萬美元，佔淨銷售額的40.8%。

Adjusted operating income was $68.3 million, 19.3% of net sales compared to last year of $29.9 million and 19.1%, respectively. GAAP EPS was $1.09 and new adjusted EPS came in at $1.79, and Rob will explain this in more detail later in the call. The quarter performance was very much in compliance with our expectations, right in the middle of the fairway.

調整後營業利潤為6,830萬美元，佔淨銷售額的19.3%，而去年同期分別為2,990萬美元及19.1%。 GAAP每股收益為1.09美元，新的調整後每股收益為1.79美元，Rob將在稍後的電話會議上更詳細地解釋這一點。本季業績完全符合我們的預期，處於中游水準。

A little lower on revenues than our guidance as a result of losing $6 million to $10 million from the shutdown of our Shanghai China plant and some unusual missteps by a forward freight manager. Adjusted EBITDA was $100.7 million, 28.4% of net sales compared to $45.3 million, 29% of net sales for the same period last year. During the period, we paid down debt by another $125 million and free cash flow was $51.2 million.

由於上海工廠停工導致600萬至1000萬美元的損失，以及一位遠期貨運經理的一些不尋常的失誤，收入略低於我們的預期。調整後EBITDA為1.007億美元，佔淨銷售額的28.4%，去年同期為4,530萬美元，佔淨銷售額的29%。在此期間，我們又償還了1.25億美元的債務，自由現金流為5,120萬美元。

We entered the first quarter with a strong industrial sector. All components, including industrial distribution, food, aggregate, grain, mining, semiconductor machinery, marine, wind, energy were strong and the outlook here is more of the same for the next quarter. Sales of industrial products were up by 286.8% from last year. RBC organic growth for industrial products was up 17.3%.

進入第一季度，工業板塊表現強勁。包括工業分銷、食品、骨料、穀物、採礦、半導體機械、船舶、風能、能源在內的所有板塊均表現強勁，預計下一季的前景也將保持良好。工業產品銷售額年增286.8%。 RBC工業產品有機成長率達17.3%。

Turning now to aerospace and defense. The first quarter of fiscal '23 net sales were up 10%. The revival in production at Boeing is a welcome contributor, as their plans to increase rates on the MAX to over 500 and 600 ships in '23 and '24, respectively, from 330 today and Airbus sets a new pace of 700 and 800 ships for the A320 series over the same period.

現在來看看航空航太和國防領域。 23財年第一季淨銷售額成長了10%。波音公司生產的復甦是受歡迎的貢獻因素，因為他們計劃在23年和24年分別將MAX的產量從目前的330架提高到500架和600架以上，而空中巴士則在同一時期為A320系列設定了700架和800架的新目標。

Today, there are -- they ship -- they plan on producing 600 ships. This brings a new and welcome post-COVID volume to our factories, many of which were designed and capitalized over the past half dozen years to efficiently produce products for these important aircraft models.

如今，他們計劃生產600艘飛機。這為我們的工廠帶來了新冠疫情後令人欣喜的產量。其中許多工廠在過去六年都是為了高效生產這些重要機型而設計和投入使用的。

As many of you already know, RBC Bearings was honored to receive the Supplier of the Year Award from Boeing at their June Supply Chain conference in Los Angeles. We have been a supplier to Boeing since the 1940s, probably earlier, and participate in every plane model currently produced and a great many defense products. Boeing commercial aircraft is supported today by over 11,000 suppliers.

各位可能已經知道，RBC Bearings 很榮幸在波音公司今年六月於洛杉磯舉行的供應鏈大會上榮獲「年度最佳供應商」獎。我們自 20 世紀 40 年代甚至更早以來就一直是波音公司的供應商，參與了目前生產的每一款飛機以及大量國防產品的生產。目前，波音商用飛機的供應商超過 11,000 家。

The release to production of the Boeing 787 model aircraft is an important milestone event for us. Several of our plants produce many unique products for this plane and our content is substantial. Obviously, we are applauding the resumption of production of this aircraft and are busy now reviewing plant capacity to support the increase. We are using 10 ships per month in 24 months out as a planning boogie.

波音787型飛機的投產對我們來說是一個重要的里程碑。我們的多家工廠為這架飛機生產許多獨特的產品，產量龐大。我們非常高興這架飛機能夠恢復生產，目前正忙於評估工廠產能以支持產能提升。我們計劃在24個月內每月使用10艘船。

A word on our defense business, the outlook here is positive for new designs, hardware and services, new designs for advanced munitions, aircraft and submarines with expanded mission profiles. It's very active right now, and it's a pretty exciting place to work. Our business supporting the construction of Virginia and Columbia ships continues to expand, and we plan to add to our manufacturing and test facilities over the next 24 months to support these requirements for the next at least a dozen years. More on this aspect in future calls.

談談我們的國防業務，新設計、硬體和服務，以及先進彈藥、飛機和任務範圍更廣的潛艇的新設計，前景都十分樂觀。目前，我們的業務非常活躍，工作氛圍也相當令人興奮。我們為「維吉尼亞號」和「哥倫比亞號」軍艦建造提供的支援業務持續擴張，我們計劃在未來24個月內擴建製造和測試設施，以滿足未來至少12年的需求。更多這方面的內容，請關注未來的電話會議。

Finally, given the deployment of U.S.-made equipment to Europe in the past month, there's been a strong initiative underway here for replenishment of munitions. As you can imagine, we will be impacted by that. Regarding the second quarter, we are expecting sales to be between $355 million and $365 million. The art here in that range is all about supply chain.

最後，鑑於過去一個月美國製造的設備部署到歐洲，歐洲正在大力推動彈藥補給。你可以想像，這將對我們產生影響。關於第二季度，我們預計銷售額將在3.55億美元至3.65億美元之間。要達到這個水平，關鍵在於供應鏈。

And now I'll turn the call over to Rob for more detail on the financial performance.

現在我將把電話轉給 Rob，以了解有關財務表現的更多詳細資訊。

Thank you, Mike. SG&A for the first quarter of fiscal 2023 was $55.8 million compared to $31.2 million for the same period last year. As a percentage of net sales, SG&A was 15.8% for the first quarter of fiscal 2023 compared to 20% for the same period last year. Other operating expenses for the first quarter of fiscal 2023 totaled $20.9 million compared to $3.2 million for the same period last year.

謝謝，麥克。 2023財年第一季的銷售、行政及一般費用（SG&A）為5,580萬美元，去年同期為3,120萬美元。 2023財年第一季的銷售、行政及一般費用佔淨銷售額的15.8%，去年同期為20%。 2023財年第一季的其他營運費用總計2,090萬美元，而去年同期為320萬美元。

For the first quarter of fiscal 2023, other operating expenses included $17.3 million of amortization of intangible assets, $3.8 million of costs associated with the Dodge acquisition and $0.2 million of other income. For the first quarter of fiscal 2022, other operating expenses consisted primarily of $2.6 million of amortization of intangible assets and $0.6 million of restructuring costs and other items.

2023財年第一季度，其他營運支出包括1,730萬美元的無形資產攤銷、380萬美元的道奇收購相關成本以及20萬美元的其他收入。 2022財年第一季度，其他營運支出主要包括260萬美元的無形資產攤銷以及60萬美元的重整成本及其他項目。

Operating income was $64.5 million for the first quarter of fiscal 2023 compared to operating income of $29.3 million for the same period in fiscal 2022. On an adjusted basis, operating income would have been $68.3 million for the first quarter of fiscal 2023 compared to adjusted operating income of $29.9 million for the first quarter of fiscal 2022.

2023 財年第一季的營業收入為 6,450 萬美元，而 2022 財年同期的營業收入為 2,930 萬美元。經調整後，2023 財年第一季的營業收入為 6,830 萬美元，而 2022 財年第一季的調整後營業收入為 2,990 萬美元。

Interest expense for the first quarter of fiscal 2023 was $15.8 million, including $2.3 million associated with the amortization of deferred financing fees. This compares to interest expense of $0.3 million for the same period last year. The year-over-year increase reflects the addition of a term loan facility and the senior notes utilized for the Dodge acquisition during fiscal 2022.

2023財年第一季利息支出為1,580萬美元，其中包括230萬美元的遞延融資費用攤提。相比之下，去年同期的利息支出為30萬美元。年比成長反映了2022財年新增的定期貸款額度以及用於收購道奇的優先票據。

For the first quarter of fiscal 2023, the company reported net income of $37.4 million compared to net income of $24 million for the same period last year. On an adjusted basis, net income was $40.2 million for the first quarter of fiscal 2023 compared to $24.3 million for the same period last year.

2023財年第一季，公司淨利為3,740萬美元，去年同期淨利為2,400萬美元。經調整後，2023財年第一季淨利為4,020萬美元，去年同期淨利為2,430萬美元。

Net income available to common stockholders for the first quarter of fiscal 2023 was $31.7 million compared to net income of $24 million for the same period last year. On an adjusted basis, net income available to common stockholders for the first quarter of fiscal 2023 was $34.5 million compared to $24.3 million for the same period last year.

2023財年第一季普通股股東淨利為3,170萬美元，去年同期淨利為2,400萬美元。經調整後，2023財年第一季普通股股東淨利為3,450萬美元，去年同期為2,430萬美元。

Diluted earnings per share was $1.09 for the first quarter of fiscal 2023 compared to $0.95 for the same period last year. On an adjusted basis, diluted earnings per share for the first quarter was $1.19 compared to adjusted diluted earnings per share of $0.96 for the same period last year.

2023財年第一季稀釋每股收益為1.09美元，去年同期為0.95美元。經調整後，第一季稀釋每股收益為1.19美元，去年同期調整後稀釋每股收益為0.96美元。

Starting this quarter in future releases, we reflect a newly defined adjusted earnings per share. In recent months, it's become clear everyone is a bit all over the place in how they're considering earnings per share, and we have listened to feedback from our shareholders, and we believe this new metric will best reflect the ongoing performance of our business. To be clear, in future periods, we will no longer report cash earnings per share or our historical adjusted earnings per share, which only considered foreign exchange, discrete and other unusual tax matters, and other nonrecurring or unusual items.

從本季開始，我們將在未來發布的財報中反映新定義的調整後每股收益。近幾個月來，大家對每股盈餘的考量顯然有些混亂，我們聽取了股東的回饋，並相信這項新指標將最能反映我們業務的持續表現。需要明確的是，在未來的財報期間，我們將不再報告現金每股收益或歷史調整後每股收益，後者僅考慮了外匯、離散稅項和其他非常規稅項以及其他非經常性或非常規項目。

The new adjusted earnings per share will reflect adjustments for onetime or unusual items, foreign exchange, discrete and other unusual tax matters, amortization of M&A-related intangible assets, amortization of stock-based compensation and the amortization of deferred financing fees.

新的調整後每股盈餘將反映一次性或非常規項目、外匯、離散稅項和其他非常規稅項、併購相關無形資產攤銷、股票薪資攤提和遞延融資費用攤提的調整。

For the first quarter of fiscal 2023, this new adjusted earnings per share was $1.79 compared to $1.22 for the same period last year. This year-over-year improvement reflects the significant benefits provided by the Dodge acquisition. Please refer to our press release filed this morning for the full calculation.

2023財年第一季，新的調整後每股收益為1.79美元，去年同期為1.22美元。這一同比增長反映了收購道奇帶來的巨大收益。請參閱我們今早發布的新聞稿，以了解完整的計算結果。

Turning to cash flow. The company generated $59 million in cash from operating activities in the first quarter of fiscal 2023 compared to $53.3 million for the same period last year. We made a strategic investment in our inventory during the current period, which impacted the operating cash generation. Capital expenditures were $7.9 million in the first quarter of fiscal 2023 compared to $3.4 million for the same period last year. We paid down $125 million on the term loan during the period, leaving total debt of $1.565 billion as of the end of the period and cash on hand was $119.6 million.

現金流量方面，本公司2023財年第一季經營活動產生的現金為5,900萬美元，去年同期為5,330萬美元。本季度，我們對庫存進行了策略性投資，這影響了經營現金的產生。 2023財年第一季的資本支出為790萬美元，去年同期為340萬美元。本季度，我們償還了1.25億美元的定期貸款，截至本期末，總債務為15.65億美元，庫存現金為1.196億美元。

Finally, I wanted to offer some brief details on the restatement of our 10-K previously filed in May. This restatement arose out of the company's reexamination of the timing of the recognition of stock-based compensation expense associated with certain executive awards. Under U.S. GAAP, the recognition of compensation expense associated with these awards should have been accelerated due to certain clauses in the agreements associated with voluntary termination. The results of these adjustments is an expense that would have previously been recorded in fiscal 2023 and future years has been recorded in previous periods.

最後，我想簡單介紹一下我們之前於5月提交的10-K報表的重述。此次重述源自於公司對某些高階主管獎勵相關的股票薪酬費用確認時間的重新檢視。根據美國公認會計準則 (US GAAP)，由於與自願終止相關的協議中的某些條款，與這些獎勵相關的薪酬費用的確認應該提前。這些調整的結果是，一項原本應在2023財政年度及以後年度記錄的費用已在之前的期間記錄。

The impact in fiscal 2022 was an additional $9 million of pretax compensation expense. The impact in fiscal 2021 was a reduction in expense of $3.2 million and the impact in fiscal 2020 was an additional $7.4 million of pretax compensation expense. Importantly, these adjustments relate to a noncash expense item and impact the timing of the recognition rather than the overall amount of the compensation expense.

2022財年的影響是稅前薪資支出額外增加了900萬美元。 2021財年的影響是支出減少320萬美元，2020財年的影響是稅前薪資支出額外增加了740萬美元。重要的是，這些調整與非現金支出項目有關，並且影響的是確認的時間，而不是薪酬支出的總金額。

There was no impact to our historical non-GAAP adjusted EBITDA as we traditionally exclude stock-based compensation from that metric. As a result of these adjustments, the total expense recognized in fiscal 2023 is expected to be less than previously anticipated, including a reduction of more than $5 million for the total for the rest of the fiscal year.

由於我們傳統上將股票薪酬排除在歷史非公認會計準則 (Non-GAAP) EBITDA 之外，因此該指標不受影響。由於這些調整，預計 2023 財年確認的總支出將低於先前的預期，其中本財年剩餘時間的總支出將減少超過 500 萬美元。

I would now like to turn the call back to the operator for the question-and-answer session.

現在我想將電話轉回給接線員，進行問答環節。

(Operator Instructions) Our first question today is coming from Kristine Liwag from Morgan Stanley.

（操作員指示）我們今天的第一個問題來自摩根士丹利的克里斯汀·利瓦格 (Kristine Liwag)。

So first, congratulations on winning the Boeing Supplier of the Year Award. Presumably, Boeing would want more of a supply chain to execute like you guys. I mean, to what degree does this recognition potentially unlock expansion of scope of work?

首先，恭喜您榮獲波音年度供應商獎。想必波音也希望有像你們這樣的供應鏈。我的意思是，這項認可在多大程度上能夠擴大工作範圍？

Well, we're waiting to see how that plays out, Kristine. It -- we're clearly sort of in the winner circle in terms of new work coming from Boeing. And so we're working through bids on other products. Boeing is -- I guess, it's well known that they have a lot of supply chain issues and suppliers that didn't make it through the COVID period for financial reasons or employment reasons or shortage of labors. And so they're looking to move work. And I think we're probably in a very good position to achieve some of that work. It's too early to tell what the ultimate benefit is going to be, but I like where we are.

嗯，克里斯汀，我們正在觀望事態發展。就波音的新業務而言，我們顯然處於贏家圈。因此，我們正在為其他產品招標。波音—我想，眾所周知，他們面臨許多供應鏈問題，一些供應商因財務原因、就業原因或勞動力短缺而未能挺過新冠疫情時期。所以他們正在考慮轉移業務。我認為我們很可能已經處於非常有利的位置，可以完成部分業務。現在判斷最終的收益還為時過早，但我喜歡我們現在的現狀。

And if I could do a follow-on question on Dodge. When you look at RBC Bearings historically, you guys have performed and been very defensive across different cycles. I mean, looking back in the past 10 years, gross margins didn't dip below 35%. And even going back to data post IPO, I mean gross margins never dipped below 30%. So given the uncertain macro backdrop we're facing today, can you provide more color on how Dodge changes your -- the defensibility of your portfolio and how you'd expect them to perform in an industrial recession, should we see one? I mean, with the 60% recurring revenue at Dodge, is it more or less defensible on top and bottom line versus RBC bearings on a legacy basis?

我想問一個關於道奇的後續問題。回顧RBC軸承的歷史，你們在不同的週期中都表現良好，而且防禦性很強。我的意思是，回顧過去10年，毛利率從未低於35%。即使回顧IPO後的數據，毛利率也從未低於30%。鑑於我們目前面臨的不確定的宏觀背景，您能否更詳細地說明道奇如何改變你們投資組合的防禦性，以及您預計它們在工業衰退時期會如何表現？如果出現衰退，我們會看到什麼？我的意思是，道奇的經常性收入佔比60%，與RBC軸承相比，它在營收和利潤方面的防禦性更強還是更弱？

Yes. Well, I think roughly 80%, I'm rounding now, of Dodge's revenues are coming from industrial distributors. And those industrial distributors, if you talk to any one of those industrial distributors, they will tell you that 50% of their revenue is what they call break fixed revenue. So there's something broken in one of the plants that they service. And so they supply the replacement part to that plant. And so a heavy -- there's a heavy concentration of Dodge's business is associated with this break-fix component of the U.S. infrastructure.

是的。嗯，我大概估計一下，道奇大約80%的收入來自工業產品經銷商。如果你和任何工業產品經銷商溝通，他們都會告訴你，他們50%的收入是所謂的「故障維修收入」。也就是說，他們服務的某個工廠出了問題，他們就會向該工廠提供替換零件。所以，道奇的業務很大程度與美國基礎設施的故障維修部分有關。

And that infrastructure is aggregate, it's grain, it's a what they call unit handling. And so it's very integrated into the U.S. GDP. So I think that Dodge -- when you look at the Dodge revenues over that same period, they're lower beta revenues than RBC's because RBC is more direct OEM business. So we might be supplying somebody like a Caterpillar and depending upon what systems you're supplying at Caterpillar, you can be up a lot, you can be down a lot. And Dodge doesn't have that variability in their makeup.

這些基礎設施是骨料，是穀物，是所謂的單元處理。因此，它與美國GDP緊密相關。所以我認為，道奇——如果你看一下道奇同期的收入，你會發現他們的貝塔收入低於加拿大皇家銀行，因為加拿大皇家銀行更直接從事原始設備製造商業務。所以我們可能會為卡特彼勒這樣的公司供貨，根據你為卡特彼勒供應的系統，你的收入可能會大幅上漲，也可能會大幅下跌。而道奇的組成沒有這種變化。

And then with less of that variability in the top line presumably, margins also would be more stable. Is that a fair assessment?

那麼，如果營收波動較小，利潤率應該也會更穩定。這個評價公平嗎？

Yes, I think that's a fair assessment.

是的，我認為這是一個公平的評價。

Next question is coming from Steve Barger from KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Steve Barger。

Rob, thanks for the explanation on the new adjusted EPS. Just to make sure I understand, when you report 2Q, we'll see a GAAP result and then the adjusted number that you will focus people to will be comparable to the $1.79 that you referenced for this quarter?

Rob，謝謝你對新的調整後每股盈餘的解釋。為了確保我理解正確，當你報告第二季財報時，我們會看到一份GAAP結果，然後你關注的調整後數字會與你提到的本季1.79美元相當嗎？

That's exactly right. Those will be the only 2 that will reflect starting next quarter.

完全正確。從下個季度開始，只有這兩個數據會反映出來。

So you would expect consensus to reflect more of that 179 basis.

因此，你會期望共識能更反映這 179 個基礎。

That would be what we would expect.

這正是我們所期望的。

I'm going to ask that industrial question maybe in a slightly different way. When you think about the combined industrial business and how that will grow relative to the cycle, just to be more quantitative, if IP or industrial production is plus 5%, what would you expect your business to be up? And then same question if IP were to be down 5%.

我想用稍微不同的方式問這個工業問題。當你考慮合併後的工業業務及其相對於週期的成長時，為了更量化地理解，如果工業生產（IP）成長5%，你預期你的業務會成長多少？如果工業生產下降5%，你也同樣會問這個問題。

Yes. Well, I can tell you, if IP were up 5%, we would have difficulty supporting all the order book. Year book would be extremely demanding. Actually, when it's above 3%, it's very demanding. 5% that's probably merges with a purchase manager index of something like 55 to 58. That's -- those kind of track each other and in those neighborhoods, we're as busy as it can get.

是的。嗯，我可以告訴你，如果採購經理人指數上漲5%，我們將難以支撐所有訂單。年度訂單量會非常緊張。實際上，當它超過3%時，就非常緊張了。 5%的採購經理人指數可能與55到58的採購經理人指數合併。這些指標相互關聯，在這些區域，我們的業務非常繁忙。

When it goes negative 5%, Steve, I really don't want to think about that.

當利率降至負 5% 時，史蒂夫，我真的不想考慮這個問題。

Well, I mean, you just went through it in the pandemic, right? And IP is running about 5% right now. So is the order book hard to keep up with as it stands today, supply chain notwithstanding?

嗯，我的意思是，你們剛剛經歷了疫情，對吧？現在IP的銷售額大概在5%左右。那麼，就目前的情況來看，即使供應鏈暢通，訂單量是否也難以跟上？

Yes. So the order book is still outpacing our ability to deliver. And that's mainly a supply chain thing. We certainly have the internal plant capacity, but we are having hiccups, particularly in the Dodge side, not on the RBC side, but on the Dodge side with supply chain matters. And that way, when we do a revenue guidance, there's an incredible amount of work that goes into the calculus associated with getting to those revenue numbers. And so we try to make them conservative but realistic. And so if there's some supply chain breakthroughs, then there'll be a very pleasant revenue surprise at the end of the quarter.

是的。所以訂單量仍然超出了我們的交貨能力。這主要與供應鏈有關。我們當然擁有內部工廠的產能，但也遇到了一些問題，尤其是在道奇方面，不是RBC方面，而是道奇方面的供應鏈問題。因此，當我們制定收入預期時，我們需要進行大量的計算才能得出這些收入數字。因此，我們力求預期保守但切合實際。如果供應鏈方面取得一些突破，那麼本季末的營收將會非常令人驚訝。

The supply chain problem is getting better as we bring on basically additional suppliers. And in some cases, we convert some of the RBC classic plant manufacturing to relieve some of the shortages that we have. So -- and that's working better as you introduce it and work it and it matures. So I think -- but I do think it's going to be with us for the rest of this year.

隨著我們引入更多供應商，供應鏈問題正在改善。在某些情況下，我們會改造一些RBC的傳統工廠生產，以緩解我們面臨的一些短缺問題。所以，隨著我們引入、運行和成熟，情況會越來越好。所以我認為，但我確實認為，今年剩餘時間我們仍將面臨這個問題。

Yes. For the revenue guide for 2Q, how much did you factor in as an offset for supply chain?

是的。對於第二季的營收指南，你們考慮了多少供應鏈的抵銷因素？

Well, I know what the number is, but I don't want to tell you.

嗯，我知道這個數字是多少，但我不想告訴你。

Okay. Is it less than you factored in for your 1Q guidance?

好的。這個數字是否低於您第一季預測的水平？

No, it's the same.

不，是一樣的。

Okay. And do you expect Dodge revenue contribution will be up sequentially?

好的。您預計道奇的收入貢獻會季比上升嗎？

Yes, I do.

是的，我願意。

Next question is coming from Seth Weber from Wells Fargo Securities.

下一個問題來自富國證券的塞思‧韋伯。

I wanted to ask, the margins were actually better than what we were looking for, both on the gross margin and EBITDA margin. So I'm just trying to understand maybe where you're at from a price cost perspective. Would you expect price cost to be getting better through the balance of the year? Are you on the positive side of that? Or just any framework you can give us for what you saw in the first quarter relative to expectations for the rest of the year?

我想問一下，利潤率實際上比我們預期的要好，無論是毛利率還是EBITDA利潤率。所以我只是想從價格成本的角度來了解你們目前的狀況。您預計今年全年價格成本會有所改善嗎？您對此持樂觀態度嗎？或者您能給我們一個框架，說明第一季的業績與今年剩餘時間的預期相比如何？

Yes. Well, I think price cost is going to get better, particularly as it relates to supply chain and half of Dodge's cost of sales in rough numbers, our supply chain -- supplied. And so there's transportation expense in there. In the past quarter, there is air freight from Asia there. That's going away. The cost of diesel is -- seems to be moderating. So the transportation expense should calm down. And we see the prices of some of the basic commodities backing off. So that's telling us that, that cost pressure should be relieved as time goes on. We didn't see any relief in the first quarter. So we're not planning to see any material relief in the second quarter.

是的。我認為價格成本會有所改善，尤其是在供應鏈方面。道奇銷售成本的一半（粗略估計）來自我們的供應鏈——供應。這其中也包括運輸費用。上個季度，道奇有從亞洲空運到美國的運費。現在空運正在減少。柴油成本似乎正在下降。所以運輸費用應該會下降。而且我們看到一些基本商品的價格正在回落。這告訴我們，隨著時間的推移，成本壓力應該會得到緩解。我們在第一季沒有看到任何緩解。因此，我們預計第二季也不會看到任何實質的緩解。

Okay. Would you keep the price increases that you're pushing through even in a lower input cost environment?

好的。即使在投入成本較低的情況下，你們還會繼續推行漲價政策嗎？

Well, I mean, we'd have to evaluate it product by product and account by account, and see where it all comes out. It's -- that's a hard question to answer. We would in some cases and we'd probably back down in other cases. And so it's very tactical.

嗯，我的意思是，我們必須逐一產品、逐個帳戶地進行評估，看看最終結果如何。這個問題很難回答。在某些情況下我們會採取一些措施，但在其他情況下我們可能會有所讓步。所以，這非常具有戰術性。

Okay. And then just my follow-up question. You've mentioned now for a couple of quarters adding capacity on the aero side. And I think I heard you kind of referenced adding some capacity on the defense side as well. Can you just put some timing around that. It sounds like defense may be a little bit further out. But when would you expect this extra capacity to start to help you?

好的。接下來是我的後續問題。您提到了幾個季度以來在航空方面的產能增加。我好像聽到您提到在防禦方面也增加一些產能。能否具體說明一下具體時間？聽起來防禦方面可能還需要一段時間。但是，您預計這些額外的產能何時會開始對您有所幫助？

Well, on the aero side, we don't have to add the capacity on the aero side in terms of CapEx and that sort of thing because we were at a gallop there before the pandemic hit. And we want to get sort of -- it looks like we're going to get back into those clothes. So it's really adding manpower and that's -- these days, that's not easy to do, but it's doable. And so you have to go out and be creative about where you look for people and how you attract them to your company. So that's -- on the aerospace and the industrial side, that kind of answers that question.

嗯，在航空航天方面，我們不需要增加資本支出之類的產能，因為疫情爆發前，我們在這方面發展得很快。我們想……看起來我們又要重新開始生產這些服裝了。所以這其實就是增加人力，而這——在如今，這不容易做到，但並非不可能。所以你必須走出去，發揮創造力，去尋找人才，以及如何吸引他們加入你的公司。所以，在航空航天和工業方面，這在某種程度上回答了這個問題。

On the defense side, yes, it's a little further out. We have proposals into the -- some of the defense agencies with regard to what we'd like to add for -- or what we think should be added for capacity. And they've been favorably received, and it looks like we'll receive some funding.

在國防方面，是的，這有點遠。我們已經向一些國​​防機構提出了一些建議，關於我們希望增加哪些能力，或者我們認為應該增加哪些能力。這些建議得到了正面的回饋，看起來我們會得到一些資金。

(Operator Instructions) Our next question is coming from Sam Struhsaker from Truist Securities.

（操作員指示）我們的下一個問題來自 Truist Securities 的 Sam Struhsaker。

I was just hoping I think you touched on this a little bit regarding pricing, but is there any particular aspect of supply chain, whether it be specific parts or raw materials were you guys either increasing lead times or maybe some pressure there? And then kind of building off of that, again, briefly touched on prior. But regarding labor, are you guys finding any additional needs there for bringing on capacity on that front?

我只是希望您稍微談一下定價方面的問題，但供應鏈方面是否存在一些特殊方面？無論是特定零件還是原料，你們是否延長了交貨時間，或是施加了某些壓力？然後，基於這一點，之前也簡單提到過。至於勞動力方面，你們是否發現有任何額外的需求來提升這方面的產能？

Yes. One, on the labor side, we definitely will, we'll have to add labor. This buildup of the 787 production volume is pretty significant for us. So there's no way that we're going to be able to do that without adding labor. And -- but it's a manageable amount of labor requirement. So it's -- the second part of your question was materials?

是的。首先，在勞動力方面，我們肯定會增加勞動力。 787產量的提升對我們來說意義重大。所以，如果不增加勞動力，我們根本無法做到這一點。而且——但這對勞動力的需求是可控的。所以——你問題的第二部分是材料？

Yes. Just if you guys are feeling any particular supply chain pressure, whether it be lead times or just some pressure and whether it's any particular parts or raw materials when you might be feeling that?

是的。你們是否感受到了任何特定的供應鏈壓力，無論是交貨時間還是其他壓力，以及是否感受到了任何特定的零件或原材料的壓力？

Well, yes, on raw materials, of course, it's titanium. And titanium is always an issue. And depending upon who you're working for, it can be a challenge. It could be very costly. And so there's various strategies that we can employ there and do employee. We can buy -- if we're supplying Boeing, we can buy titanium from the suppliers at a negotiated price that Boeing had negotiated with that supplier for people like us. And Boeing tells us there's absolutely no issue at all with the availability of titanium that got that covered. So I hope they're right.

是的，就原料而言，當然是鈦。鈦一直是個問題。而且，根據你的工作對象，這可能是一個挑戰。成本可能非常高昂。因此，我們可以採取各種策略來應對員工。我們可以採購－如果我們為波音公司供貨，我們可以按照波音公司與供應商協商的價格向供應商購買鈦。波音公司告訴我們，鈦的供應完全沒有問題，這解決了這個問題。所以我希望他們是對的。

Now with regard to some steels, some of the steels are pretty exotic and pretty sophisticated, and lead times on some of the steels are out a year, 50 weeks. Some of the important steels are made by people who went bankrupt, and are barely staying alive. And so some of the big plane makers and their subcontractors, larger subcontractors are doing some extraordinary things to keep those people alive, but that's always a concern.

就某些鋼材而言，有些鋼材非常特殊，製程也相當複雜，有些鋼材的交貨週期長達一年，甚至50週。一些重要的鋼材是由破產的、勉強維持生計的企業所生產的。因此，一些大型飛機製造商及其分包商，以及規模較大的分包商，正在採取一些非常措施來維持這些企業的生存，但這始終是一個令人擔憂的問題。

Your next question is coming from Joe Ritchie from Goldman Sachs.

您的下一個問題來自高盛的喬·里奇。

A few quick ones for me. I think I recall the last time we chatted, we were anticipating the first half gross margin to be about a 100 basis points higher than where you exited fiscal '22. It looks like the start to the year has gotten maybe a little bit -- gone off a little bit slower than expected or below the 4Q number. Do you guys still expect the first half GM to be about 100 basis points higher?

我簡單問幾個問題。我記得上次我們聊天的時候，我們預計上半年的毛利率會比2022財年末高出約100個基點。看起來今年年初的毛利率可能比預期略低一些，或低於第四季的數據。你們仍預期上半年毛利率會高出約100個基點嗎？

What did we end up in?

我們最終的結局是什麼？

So yes, I think the way we're looking at is over the course of the year, we should start to see that improvement, but it's always lumpy during the year. I would expect the second quarter gross margins to look quite similar to the first.

所以是的，我認為我們預計全年應該會開始看到這種改善，但全年來看情況總是不穩定的。我預計第二季的毛利率會與第一季大致相同。

And our strongest quarter is Q4.

我們最強勁的季度是第四季。

And then, I guess, maybe just kind of parsing out, I know that you guys have a lot of international exposure, so probably less affected by FX than a lot of other companies that we cover. But I'm just curious, the industrial organic growth number for this quarter, I don't -- I didn't hear you guys give it earlier. I mean, we're calculating something like 17%. Is that what you saw come through in the quarter?

然後，我想，或許可以稍微分析一下，我知道你們有很多國際業務，所以可能比我們關注的許多其他公司受外匯的影響更小。但我只是好奇，本季的工業有機成長數字，我之前沒聽你們透露過。我的意思是，我們計算的是17%左右。這是你們在本季看到的數字嗎？

17.3%. And that's mainly...

17.3%。這主要是…

And then I'd actually be curious just to hear any trends that you're seeing in the business as you progress through the quarter. Obviously, 17% is a very healthy number. A lot of concerns out there around industrial activity slowing. Just any thoughts around what you're seeing in that business? And any trends that you saw intra-quarter?

我其實很想知道，隨著本季的推進，您觀察到了哪些業務趨勢。顯然，17% 是一個非常健康的數字。很多人擔心工業活動放緩。您對該業務的現況有什麼看法？您在本季觀察到了哪些趨勢？

Well, I think we have a few really good key markets that are doing well, construction and mining, semicon, oil and gas. And at the same time, I think we're starting to see some activity from our synergy on cost training, Dodge's sales team and RBC sales team. And so with a 17.3% growth rate on industrial mainly in the U.S., I mean we'll more than double of any of our competitors on the growth for year-over-year with a quarter that we're going up against. But for us, the big markets, like I said, are construction and mining side be the Caterpillars, Komatsus of the world, oil and gas, semiconductor, general industrial distribution. Just without Dodge, our general industrial distribution business was up 11.6% organically and our OEM business was up 21%.

嗯，我認為我們有幾個關鍵市場表現良好，例如建築和採礦、半導體、石油和天然氣。同時，我認為我們在成本訓練、道奇銷售團隊和RBC銷售團隊的綜效也開始顯現。因此，我們在美國工業領域的成長率達到了17.3%，這意味著我們的年成長率將比任何競爭對手都高出一倍以上，而我們面臨的競爭壓力也很大。但對我們來說，正如我所說，最大的市場是建築和採礦領域，例如卡特彼勒和小松，石油和天然氣、半導體以及一般工業分銷。除去道奇，我們的一般工業分銷業務有機成長了11.6%，原始設備製造商業務成長了21%。

Your next question is coming from Ron Epstein from Bank of America.

您的下一個問題來自美國銀行的 Ron Epstein。

So just a couple of quick financial questions. So is the plan to still pay down $300 million of debt this year?

那麼，我只想問幾個關於財務的快速問題。今年還計劃償還3億美元的債務嗎？

The plan is to accomplish $300 million this year, $400 million cumulatively since the acquisition. That's right.

計劃今年實現3億美元，自收購以來累計4億美元。沒錯。

And then I guess another thing that kind of came out in the release to me, what's being done to address the material weakness in the financial controls?

然後我想，發布給我的另一件事是，正在採取什麼措施來解決財務控制中的重大缺陷？

Yes. We're taking it internally. We are reevaluating the processes that are in place regarding employment contracts as they relate to compensation and we'll be adding additional controls regarding the legal and accounting review prior to the time of grant.

是的。我們正在內部處理此事。我們正在重新評估與薪酬相關的僱傭合約流程，並將在授予前增加額外的法律和會計審查控制措施。

The next question is a follow-up from Steve Barger from KeyBanc Capital Markets.

下一個問題是 KeyBanc Capital Markets 的 Steve Barger 提出的後續問題。

Was there anything outside of Shanghai and supply chain that impacted 1Q revenue? Like was there any FX impact?

除了上海和供應鏈之外，還有其他因素影響了第一季的營收嗎？例如匯率方面的影響嗎？

Very minimal FX impact during the period, all things considered. Obviously, the European rates moved the way they did, but the notes that Mike hint on were the bigger drivers.

綜合考慮，這段期間外匯影響微乎其微。歐洲利率的變動顯然是那樣的，但麥克提到的那些票據才是更大的驅動因素。

Can you remind me, if anything changed around seasonality for 3Q with Dodge included? I think historically, it typically steps down a touch from 2Q before the ramp to the 4Q peak.

您能提醒我一下，包括道奇在內，第三季的季節性因素有什麼變化嗎？我認為從歷史上看，道奇的銷量通常會在第二季度略有下降，然後在第四季度達到高峰。

The same. So you can expect they're going to have the same holiday seasons that we have, Thanksgiving, Christmas and the shortest amount of production days for both companies.

一樣。所以你可以預期他們會有跟我們一樣的假期，感恩節、聖誕節，而且兩家公司的生產天數都會最短。

And historically, ROLL's been really good at taking an analytical approach to things. So as you look across your end markets and your existing customers, do you see more value right now in going after more wallet share or in entering new markets? Because presumably, the former has a higher returns than the latter.

從歷史上看，ROLL 非常擅長採用分析方法來處理問題。那麼，當您審視終端市場和現有客戶時，您認為目前是追求更大的市場份額更有價值，還是進入新市場更有價值？因為前者的回報可能比後者更高。

Well, we have a lot of new products coming through the system, almost too many in terms of I mean, you can't get behind all of them. And you have to pick the big winners. And so right now, as far as Dodge is concerned, we're sorting through what they have for product development, which is extensive. And which products, how mature are their developments, how far along is the product technically and how far along are we in terms of understanding the market needs, and what's scalable in terms of those products. And that's the process that we're going through right now with Dodge. And it's -- I'll tell you, it's keeping us busy. There's a lot of -- lot of wood to cut there. And so I think in terms of adding new products to the existing market channels is a very good recipe for success, as it applies as -- certainly as it applies to Dodge.

嗯，我們有很多新產品正在通過這個系統，幾乎太多了，我的意思是，你不可能全部支持它們。你必須挑選出最大的贏家。所以現在，就道奇而言，我們正在整理他們現有的產品開發，這項工作非常廣泛。包含哪些產品，它們的開發有多成熟，產品技術進展如何，我們對市場需求的理解程度如何，以及這些產品的可擴展性如何。這就是我們目前與道奇合作的過程。而且──我告訴你，這讓我們忙個不停。有很多事情要做。所以我認為，在現有的市場通路中增加新產品是一個非常好的成功秘訣，這適用於——當然也適用於道奇。

Now RBC on the other hand, has to a large extent, particularly in aerospace and defense, has completely different lineup in terms of customers and market channels. And so we've kind of gone through the RBC agenda over the years and know which ones are the ones to back. And it's pretty much product introduction to existing markets. And then I think secondarily to that is how do you map RBC across Dodge's industrial markets, so that you're actually picking up revenue by introducing new accounts to existing products. So that's -- those are the 2 big waves on the stool that we're working on right now.

另一方面，RBC 在很大程度上，尤其是在航空航太和國防領域，在客戶和市場通路方面擁有完全不同的陣容。因此，多年來，我們一直在研究 RBC 的議程，知道哪些是值得支持的。這基本上就是將產品推向現有市場。我認為其次，如何將 RBC 映射到道奇的工業市場，以便透過為現有產品引入新客戶來真正增加收入。所以，這就是我們目前正在努力應對的兩大浪潮。

And realistically, how long does it take to effectively complete that mapping process? Is that years or quarters?

那麼，實際上，要有效地完成這個映射過程需要多長時間？是幾年還是幾季？

We're quite -- well, I mean, it never ends, Steve. It really never ends because there's always more coming through. But we're quite far along on some of these programs in terms of Dodges' program. And so -- and others are at the initial stage at the end of their technical development, but at the beginning of their market assessment. So yes, I think we're going to have some good things to talk about.

我們相當……嗯，我的意思是，這永遠不會結束，史蒂夫。真的永遠不會結束，因為總是有更多項目湧現。但就道奇的專案而言，我們的一些專案已經進展順利。其他一些項目則處於初始階段，技術開發已接近尾聲，但市場評估才剛開始。所以，是的，我認為我們會有一些好東西可以談。

And just one more. Just looking at the segments, will aerospace always have intrinsically higher incremental margin than industrial? Or should they be even over time?

再問一個問題。單從細分市場來看，航空航太業的增量利潤率是否永遠高於工業領域？還是說，隨著時間的推移，兩者應該持平？

They tend to be quite close over time. It obviously depends on the period and what's going on. But if you look at the history, they're really not that far apart.

隨著時間的推移，它們往往會非常接近。這顯然取決於時期和當時的情況。但如果你回顧歷史，你會發現它們之間的距離其實沒有那麼遠。

Your next question is coming from Pete Skibitski from Alembic Global.

您的下一個問題來自 Alembic Global 的 Pete Skibitski。

Sorry, I've been getting trouble getting into the queue there. Yes, Mike, maybe just to start, on the Shanghai plant is revenue-wise. Has the plant reopened again as of the start of 2Q?

抱歉，我最近有點麻煩，無法加入隊列。是的，麥克，首先我想先談談上海工廠的收入狀況。截至第二季初，工廠已經恢復運作了嗎？

Yes, it has.

是的，確實如此。

Okay. So we should gain that revenue back. And then would you guys be willing to quantify the impact of the -- I think you called it an unusual freight misstep in the quarter?

好的。所以我們應該能把這部分收入補回來。那麼，你們願意量化一下這部分收入的影響嗎？我記得你們說這是本季一次不尋常的貨運失誤。

Yes.

是的。

It was -- that impact was somewhere between $2 million and $4 million.

確實——影響金額大約在 200 萬至 400 萬美元之間。

And the issue has been -- it sounds like a onetime issue?

這個問題聽起來像是一次性的問題？

Yes. It was -- it's an unusual issue for this particular forwarder. It hasn't happened in the past that anybody could remember. And so we're getting involved with why it happened this time and what we can do to help.

是的。對於這家貨運代理商來說，這是一個不尋常的問題。據我們所知，過去從未發生過這種情況。因此，我們正在調查這次發生的原因，以及我們能提供哪些幫助。

Maybe on industrial they kind of switch the metric a little bit from IP. In the past, Mike, you've talked about PMIs a lot and it's great when PMIs are about 55%, and we've seen a little bit of deceleration recently. So I'm just wondering, as we sit here in August over the last month plus, are there any signs of deceleration in demand at all for your industrial end markets? Or is it just not really something that's visible right now?

也許在工業方面，他們可能會稍微調整工業生產指標。麥克，過去你經常談論PMI，PMI在55%左右是很好的，但最近我們看到了一點放緩。所以我想知道，8月份過去一個多月，你們的工業終端市場需求是否有任何放緩的跡象？還是說，目前還看不出來？

Certainly for classic RBC, we're definitely not seeing it. We're not seeing any acceleration. In Dodge, it's -- their business is lumpy. And -- but when we look at the markets that they serve, aggregate -- in the aggregate market from what our field people are telling us, there's no capacity left by aggregate producers. They're 100% full, and we have now this infrastructure program coming through that's going to throw gasoline on the fire. Grain is grain. It's going on in the world with grain. And so the farmers are running their machinery and breaking things and needing replacement.

當然，對於經典的RBC來說，我們肯定沒有看到這種情況。我們沒有看到任何加速。在道奇，他們的業務起伏不定。而且——但是，當我們看看他們服務的市場——骨料市場——從我們實地人員告訴我們的情況來看，骨料生產商已經沒有剩餘產能了。他們的產能已經完全滿了，現在我們又有一個基礎建設項目正在實施，這無疑會火上澆油。穀物就是穀物。世界上的穀物問題就是這樣。所以農民開動機器，機器壞了，需要更換。

Our food products have been really well accepted by the industry. And that's a growth leg for us that's in its early stages. And we have been -- we have a lot of demand for these new products out of Dodge that address the manufacture of food. And so we think that those markets are going to continue. And we haven't seen them lit up. We have seen some backing off of what they call unit handling as a result of Amazon canceling building, what, 40 or 50 different warehouses. So there's been some back up there, but that's -- frankly, that's probably going to expand our margins.

我們的食品產品在業界廣受歡迎。這對我們來說是一個成長點，目前正處於初期階段。我們一直以來——對道奇公司（Dodge）推出的這些針對食品製造的新產品的需求很大。因此，我們認為這些市場將會持續成長。但我們目前還沒有看到它們蓬勃發展。由於亞馬遜取消了40到50個不同倉庫的建設，我們看到所謂的「單元處理」業務有所回落。所以，那裡的訂單量有所回升，但坦白說，這可能會提高我們的利潤率。

Last one for me. I think you guys are still expecting to generate $400 million in adjusted EBITDA this year. Is that on track?

最後一個問題。我認為你們仍然預計今年的調整後息稅折舊攤提前利潤（EBITDA）將達到4億美元。這個目標達成了嗎？

Well, certainly, with the first quarter, we're trending in that direction. Yes.

嗯，當然，從第一季來看，我們正朝著這個方向發展。是的。

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

我們的問答環節已經結束。接下來，請哈特內特博士繼續發表最後評論。

Okay. Well, I appreciate the involvement of everybody in the questions today. And thanks again for your interest in RBC Bearings and participation in the call, and we'll speak again in October. Good day.

好的。非常感謝大家今天參與提問。再次感謝您對RBC Bearings的關注與參與電話會議。我們十月再見。祝您愉快！

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

謝謝。今天的電話會議到此結束。您可以掛斷電話了，祝您擁有美好的一天。感謝您今天的參與。