RBC Bearings Inc (RBC) 2023 Q3 法說會逐字稿

Greetings, and welcome to RBC Bearings Third Quarter Fiscal Year 2023 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Josh Carroll with Investor Relations. Please go ahead.

您好，歡迎來到 RBC Bearings 2023 財年第三季度收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。我現在想把會議轉交給你的主持人，投資者關係部的 Josh Carroll。請繼續。

Good morning, and thank you for joining us for RBC Bearings Fiscal 2023 Third Quarter Earnings Conference Call. With me on the call today are Dr. Michael J. Hartnett, Chairman, President and Chief Executive Officer; Daniel A. Bergeron, Director, Vice President and Chief Operating Officer; and Robert Sullivan, Vice President and Chief Financial Officer.

早上好，感謝您加入我們的 RBC Bearings 2023 財年第三季度收益電話會議。今天與我通話的有董事長、總裁兼首席執行官 Michael J. Hartnett 博士； Daniel A. Bergeron，董事、副總裁兼首席運營官；副總裁兼首席財務官羅伯特·沙利文 (Robert Sullivan)。

Before beginning today's call, let 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. We refer you to RBC Barrick's 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.

在開始今天的電話會議之前，讓我們提醒您，今天所做的一些陳述將是前瞻性的，並且是根據 1995 年《私人證券訴訟改革法案》作出的。由於各種因素，實際結果可能與預測或暗示的結果存在重大差異。我們建議您參考 RBC Barrick 最近向美國證券交易委員會提交的文件，以更詳細地討論可能影響公司未來經營業績和財務狀況的風險。

These factors are also described in greater detail in the press release and on the company's website. In addition, reconciliation between GAAP and non-GAAP financial information is included as part of the release and is available on the company's website.

這些因素在新聞稿和公司網站上也有更詳細的描述。此外，GAAP 和非 GAAP 財務信息之間的對賬作為新聞稿的一部分包含在內，並可在公司網站上查閱。

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

有了這個，我現在將電話轉給哈特博士。

Okay. Thank you, Josh, and good morning, everyone, and welcome to the RBC's Third Quarter Conference Call. So net sales for our third quarter for fiscal 2023 were $351.6 million versus $267 million for the same period last year, a 31.7% increase. For the third quarter of 2023, sales of industrial products represented 70% of net sales with aerospace products at 30%. Gross margin for the quarter was $146 million or 41.5% of net sales. This compares to $93.3 million or 35% for the same period last year.

好的。謝謝喬希，大家早上好，歡迎來到 RBC 第三季度電話會議。因此，我們 2023 財年第三季度的淨銷售額為 3.516 億美元，而去年同期為 2.67 億美元，增長了 31.7%。 2023 年第三季度，工業產品銷售額占淨銷售額的 70%，航空航天產品佔 30%。本季度毛利率為 1.46 億美元，占淨銷售額的 41.5%。相比之下，去年同期為 9330 萬美元或 35%。

Adjusted operating income was $71.6 million, 20.4% of net sales compared to last year of $46.3 million and 17.3%, respectively. Adjusted EPS diluted came in at $1.64 a share. Adjusted EBITDA was $103.3 million, 29.4% of net sales compared to $71.4 million, 26.7% of net sales for the same period last year. During the period, we paid down debt by another $60 million on the term loan and free cash flow was $54.4 million.

調整後營業收入為 7160 萬美元，占淨銷售額的 20.4%，而去年分別為 4630 萬美元和 17.3%。調整後的攤薄後每股收益為 1.64 美元。調整後的 EBITDA 為 1.033 億美元，占淨銷售額的 29.4%，而去年同期為 7140 萬美元，占淨銷售額的 26.7%。在此期間，我們通過定期貸款又償還了 6000 萬美元的債務，自由現金流為 5440 萬美元。

Turning now to some of our -- to our sectors. On the Industrial business, we saw and are seeing continued strength from the OEM sector with RBC classic industrial up by 14.1% driven by semiconductor machinery, energy and mining. Both RBC and Dodge showed a 12-plus percent growth in the industrial distribution revenues.

現在轉向我們的一些 - 我們的部門。在工業業務方面，我們看到並正在看到 OEM 行業持續走強，RBC classic industrial 在半導體機械、能源和採礦的推動下增長了 14.1%。 RBC 和 Dodge 的工業分銷收入均增長了 12% 以上。

Overall, industrials were up 11.8%, with sector growth mitigated somewhat by Europe in some select OEM weakness. On the aerospace and defense side, overall, we saw an expansion of 13.2% with aero OEM up 26-plus percent. Demand drivers here are the obvious candidates, large plane builders in their supply chain coming to life as the production of Boeing's 737 and 787 ships rebound. We are at the beginning of this recovery now in pandemic inventories showing less of an impact in production rate increases are well publicized.

總體而言，工業增長 11.8%，歐洲部分特定 OEM 疲軟導致行業增長有所放緩。在航空航天和國防方面，總體而言，我們看到了 13.2% 的擴張，航空 OEM 增長了 26% 以上。這裡的需求驅動因素是顯而易見的候選者，隨著波音 737 和 787 船舶產量的反彈，其供應鏈中的大型飛機製造商開始活躍起來。我們現在正處於這種複甦的開始階段，大流行病庫存顯示對生產率增長的影響較小，這一點已廣為人知。

We expect to see increased demand, creating double-digit growth from the plain builders for many quarters to come, and we continue to add resources and planning to support increased build rates -- build rate-driven demand as well as expanded work statements.

我們預計需求會增加，在未來的許多季度裡，普通建築商將實現兩位數的增長，我們將繼續增加資源和計劃來支持更高的建造率——建造率驅動的需求以及擴展的工作報表。

In total, RBC saw an organic growth in revenue of 12.7% during the period. There's been some questions about backlog. And much of our commercial aircraft business is done where the backlog isn't represented by the contract and the orders are published on a portal and we ship to those orders. So probably 60% of our business there doesn't ever get into our backlog.

總的來說，RBC 在此期間的收入有機增長了 12.7%。有一些關於積壓的問題。我們的大部分商用飛機業務都是在合同未代表積壓訂單的情況下完成的，訂單在門戶網站上發布，我們會運送這些訂單。因此，我們在那裡的業務可能有 60% 從未進入我們的積壓工作。

Regarding the fourth quarter, we are expecting sales to be $375 million to $385 million. This is becoming an increasingly difficult projection to make now post-Dodge acquisition which means half our sales, our stock items where daily shipments are subject to daily orders as opposed to being defined by long-term contracts where quarterly revenues can be well planned. So kind of puts us into the business of economic forecasting. And we do the best we can.

關於第四季度，我們預計銷售額為 3.75 億美元至 3.85 億美元。現在，在道奇收購後，這變得越來越難以做出預測，這意味著我們一半的銷售額，我們的庫存項目，其中每日發貨受每日訂單的約束，而不是由長期合同定義的，在長期合同中可以很好地計劃季度收入。這讓我們進入了經濟預測行業。我們會盡力而為。

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

我現在將電話轉給 Rob，以了解有關財務業績的更多詳細信息。

Thank you, Mike. SG&A for the third quarter of fiscal '23 was $56.8 million compared to $41.7 million for the same period last year. As a percentage of net sales, SG&A was 16.1% for the third quarter of fiscal '23 compared to 15.6% for the same period last year. Looking forward, SG&A as a percentage of sales is expected to be between 15.25% to 15.75% of sales in the fourth quarter. Other operating expenses for the third quarter totaled $18.9 million compared to $35.8 million for the same period last year.

謝謝你，邁克。 23 財年第三季度的 SG&A 為 5680 萬美元，而去年同期為 4170 萬美元。作為淨銷售額的百分比，SG&A 在 23 財年第三季度為 16.1%，而去年同期為 15.6%。展望未來，第四季度 SG&A 佔銷售額的百分比預計將在 15.25% 至 15.75% 之間。第三季度的其他運營費用總計 1890 萬美元，而去年同期為 3580 萬美元。

For the third quarter of fiscal '23, expenses included $17.4 million of amortization of intangible assets, $1.2 million of costs associated with the Dodge acquisition and $0.3 million of other expense. For the third quarter of fiscal '22, other operating expenses consisted of primarily of $23.5 million of costs associated with the Dodge acquisition, $12.1 million of amortization of intangible assets and $0.2 million of other items.

對於 23 財年第三季度，支出包括 1740 萬美元的無形資產攤銷、120 萬美元與道奇收購相關的成本和 30 萬美元的其他支出。對於 22 財年第三季度，其他運營費用主要包括與道奇收購相關的 2350 萬美元成本、1210 萬美元無形資產攤銷和 20 萬美元其他項目。

Operating income was $70.4 million for the third quarter of fiscal '23 compared to operating income of $15.9 million for the same period last year. Excluding approximately $1.2 million of acquisition costs, adjusted operating income was $71.6 million or 20.4% of sales for the third quarter of fiscal '23, excluding approximately $30.4 million of acquisition costs -- adjusted operating income for the third quarter of fiscal '22 was $46.3 million or 17.3% of sales.

23 財年第三季度的營業收入為 7040 萬美元，而去年同期的營業收入為 1590 萬美元。不包括約 120 萬美元的收購成本，調整後的營業收入為 7160 萬美元，佔 23 財年第三季度銷售額的 20.4%，不包括約 3040 萬美元的收購成本——調整後的 22 財年第三季度營業收入為 46.3 美元萬或銷售額的 17.3%。

Interest expense for the third quarter of fiscal '23 was $20.9 million compared to $11.9 million for the same period last year. We anticipate total interest expense of between $21 million and $22 million for the fourth quarter of fiscal '23 and an effective tax rate between 23% and 23.5%, excluding discrete or unusual items. For the third quarter of fiscal '23, the company reported net income of $36.3 million compared to $0.5 million for the same period last year.

23 財年第三季度的利息支出為 2090 萬美元，而去年同期為 1190 萬美元。我們預計 23 財年第四季度的總利息支出在 2100 萬美元至 2200 萬美元之間，有效稅率在 23% 至 23.5% 之間，不包括離散或異常項目。對於 23 財年第三季度，該公司報告的淨收入為 3630 萬美元，而去年同期為 50 萬美元。

On an adjusted basis, net income was $53.3 million for the third quarter of fiscal '23 compared to $40.6 million for the same period last year. Net income available to common stockholders for the third quarter of fiscal '23 was $30.6 million compared to a net loss of $5.2 million for the same period last year. On an adjusted basis, net income available to common stockholders for the third quarter of fiscal '23 was $47.7 million compared to $34.8 million for the same period last year. Diluted earnings per share was $1.05 per share for the third quarter of fiscal '23 compared to a loss of $0.18 per share for the same period last year. On an adjusted basis, diluted earnings per share for the third quarter of fiscal '23 was $1.64 per share compared to adjusted diluted earnings per share of $1.20 per share for the same period last year.

在調整後的基礎上，23 財年第三季度的淨收入為 5330 萬美元，而去年同期為 4060 萬美元。 23 財年第三季度普通股股東可獲得的淨收入為 3060 萬美元，而去年同期為淨虧損 520 萬美元。在調整後的基礎上，23 財年第三季度普通股股東可獲得的淨收入為 4770 萬美元，而去年同期為 3480 萬美元。 23 財年第三季度稀釋後每股收益為 1.05 美元，而去年同期為每股虧損 0.18 美元。在調整後的基礎上，23 財年第三季度的攤薄後每股收益為 1.64 美元，而去年同期調整後的攤薄後每股收益為 1.20 美元。

Turning to cash flow, the company generated $60.9 million in cash from operating activities in the third quarter of fiscal '23 compared to $40 million for the same period last year. Capital expenditures were $6.5 million in the third quarter compared to $14.9 million for the same period last year. We paid down $60 million on the term loan during the period, leaving total debt of $1.46 billion as of December 31, and cash on hand was $82 million. Cumulatively, since November 2021, we have paid $350 million on the term loan, including a $20 million payment in January of this year.

談到現金流，該公司在 23 財年第三季度的經營活動中產生了 6090 萬美元的現金，而去年同期為 4000 萬美元。第三季度的資本支出為 650 萬美元，而去年同期為 1490 萬美元。在此期間，我們還清了 6000 萬美元的定期貸款，截至 12 月 31 日，總債務為 14.6 億美元，手頭現金為 8200 萬美元。自 2021 年 11 月以來，我們累計支付了 3.5 億美元的定期貸款，其中包括今年 1 月支付的 2000 萬美元。

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

我現在想將電話轉回接線員進行問答環節。

Thank you. Ladies and gentlemen, at this time, we will begin up to your question-and-answer session. (Operator Instructions) Our first question comes from the line of Pete Skibitski with Alembic Global.

謝謝。女士們，先生們，現在，我們將開始您的問答環節。 （操作員說明）我們的第一個問題來自 Pete Skibitski 與 Alembic Global 的合作。

Mike, maybe you could put your economist hat on for a moment, but you probably see a lot of the macro guys out there are concerned that we could tip into a mild recession later this year. Just wondering if you're seeing anything in your industrial end markets that might indicate that. I know you touched on Europe, but wondering if you're seeing anything else there.

邁克，也許你可以暫時戴上經濟學家的帽子，但你可能會看到很多宏觀專家擔心我們可能會在今年晚些時候陷入溫和的衰退。只是想知道您是否在您的工業終端市場中看到任何可能表明這一點的東西。我知道你談到了歐洲，但想知道你是否在那裡看到了其他東西。

Well, Pete, on our industrial end markets, we're seeing -- let me -- right now, we see a very strong picture from oil and gas and a lot of demand beyond our capacity substantially beyond our capacity from the oil and gas sector. I suspect that's going to continue given what's going on with the world events. I personally favor fossil fuels. And so this is one of my favorite market sectors. Getting down just -- we're also seeing strength from mining. Actually, mining is challenging, the same manufacturing capacity is oil and gas. So it's -- we need to do a little bit of an expansion there.

好吧，Pete，在我們的工業終端市場上，我們看到 - 讓我 - 現在，我們看到石油和天然氣的前景非常強勁，許多需求超出了我們的能力，大大超出了我們來自石油和天然氣的能力部門。鑑於世界大事的發展，我懷疑這種情況會繼續下去。我個人喜歡化石燃料。所以這是我最喜歡的市場領域之一。只是 - 我們也看到了採礦的力量。實際上，採礦是具有挑戰性的，同樣的製造能力是石油和天然氣。所以它 - 我們需要在那裡做一些擴展。

Industrial distribution, very steady. Some inventory adjustments are going on, but they're small, small impact overall, and that we're talking about. Construction of warehouses are down. And you've all read the Amazon news, and we were a significant provider of hardware for those warehouses. And so that demand, which runs between $15 million and $25 million a year was completely out of our revenues in the third quarter, and we don't expect them to be back in the fourth quarter. So that's the major shift for us. We're seeing a little bit of weakness in semiconductor manufacturing, but the manufacturing capacity that we're opening up is being used to productively for industrial distribution, where we were a little bit short on product to support that sector.

產業佈局，非常穩定。一些庫存調整正在進行，但它們很小，總體影響很小，我們正在談論。倉庫建設停工。你們都讀過亞馬遜新聞，我們是這些倉庫的重要硬件供應商。因此，每年 1500 萬至 2500 萬美元的需求在第三季度完全超出了我們的收入，我們預計它們不會在第四季度恢復。所以這是我們的重大轉變。我們看到半導體製造業有點疲軟，但我們正在開放的製造能力正被有效地用於工業分銷，我們在支持該行業的產品方面有點短缺。

So I think overall, we're just not seeing it. On the defense side, it's -- in some sectors, it's unbelievably strong. You haven't seen the shipments yet, but we've got a sleepy supply chain that we're trying to wake up there and take things out and make them happen. And the aircraft build rates, you know what's happening there with Boeing and Airbus and the 737, 787 programs. So that's going to be a double-digit growth sector for us for at least the next 8 quarters.

所以我認為總的來說，我們只是沒有看到它。在防禦方面，它——在某些領域，它非常強大。你還沒有看到發貨，但我們有一個昏昏欲睡的供應鏈，我們正試圖在那裡醒來，把事情拿出來，讓它們發生。還有飛機製造率，你知道波音和空中客車以及 737、787 項目正在發生什麼。因此，至少在接下來的 8 個季度中，這對我們來說將是一個兩位數的增長領域。

Let me ask my last one on commercial aerospace, Mike. Just it seems like there still is a lot of inventory sitting at Boeing with regard to the MAX and the 787, and they've kind of indicated to us kind of their time frame for getting rid of that inventory for delivering that inventory. So are you guys still delivering kind of below their stated rate, for instance, on the MAX, I think they're 31 a month now, but some of that is out of inventory. So I'm just wondering if you guys are still delivering on the MAX, the ship set worth more in line with 20 a month or so.

讓我問我最後一個關於商業航空航天的問題，邁克。就 MAX 和 787 而言，波音公司似乎仍有大量庫存，他們已經向我們表明了他們擺脫庫存以交付該庫存的時間框架。那麼你們是否仍然交付低於他們規定的速度，例如，在 MAX 上，我認為他們現在每月 31 次，但其中一些已經缺貨。所以我只是想知道你們是否還在交付 MAX，這艘船的價值在每月 20 美元左右。

No. For us, it's -- and we study this pretty closely to make sure that we've got the right planning in place. And steel is really hard to get now. So I mean, you have to be out 12 months on your planning with steel. So you really have to be sharp on these numbers that you're going to create a problem for your customer. So, it looks like every time we measure it, we're right in step with their production rate.

不。對我們來說，它是 - 我們非常仔細地研究這個以確保我們已經制定了正確的計劃。而且鋼材現在真的很難搞到。所以我的意思是，你必須在 12 個月內完成鋼鐵計劃。所以你真的必須對這些數字保持敏銳，因為你會給你的客戶帶來問題。所以，看起來每次我們測量它時，我們都與他們的生產率同步。

Our next question comes from the line of Kristine Liwag with Morgan Stanley.

我們的下一個問題來自 Kristine Liwag 與摩根士丹利的對話。

Mike, you kind of mentioned like it seems like backlog is no longer the leading indicator when we think about revenue growth. So when you kind of think about forecasting your business, what do you guys have to do differently? And how much conviction do you have that you're going to see growth like even with that -- the risk of a mild recession?

邁克，你提到當我們考慮收入增長時，積壓似乎不再是領先指標。所以當你考慮預測你的業務時，你們有什麼不同的做法？你有多大的信心，你會看到這樣的增長——溫和衰退的風險？

Let's take the first question. What do we have to do differently? We actually don't have to do anything differently. The thing that we've evolved to, Kristine, is just to understand, for example, when we do a contract with Boeing or Airbus, exactly what mix we have under contract. So we signed a contract with them, it's 3 years or 5 years or whatever it is, and we have a certain mix that's in market share, maybe 100%, maybe 80%, something like that by contract for those ships.

讓我們來看第一個問題。我們必須做些什麼不同的事情？我們實際上不必做任何不同的事情。 Kristine，我們已經發展到的事情只是為了了解，例如，當我們與波音或空中客車公司簽訂合同時，我們在合同下究竟有什麼組合。所以我們與他們簽訂了一份合同，3 年或 5 年或任何期限，我們有一定的市場份額組合，可能是 100%，也可能是 80%，類似那些船舶的合同。

And so because we're working against the portal and not against the backlog, it's really important for us to understand their production rates and their consumption rates of our product so that we can plan our plants to have more product in place as they relieve the product that we have to build their ships. And so that's basically -- we've evolved to that over the last 5 years. And I would say, 5 years ago, we were really terrible at this and now we're really, really good at it.

因此，因為我們是針對門戶而不是積壓的工作，所以了解他們的生產率和他們對我們產品的消耗率對我們來說非常重要，這樣我們就可以計劃我們的工廠在減輕他們的負擔時生產更多的產品。我們必須建造他們的船隻的產品。所以這基本上是 - 我們在過去 5 年中已經發展到這一點。我會說，5 年前，我們在這方面真的很糟糕，而現在我們真的非常擅長。

And we take that information, and we actually got a lot of the subcontractors that use our hardware, our bearings, integrated into a subcontractor produced system and then ship that to Boeing or Airbus. And they're planning, they haven't got to this level. Let's just put it that way. And so we actually have to call our subcontractors and tell them when to put orders, not in all cases, but in many cases, when to put in orders in order to catch up and be in position and not to get caught short because if they are quite short, they're going to blame the bearing guy that they can't ship that piece of hardware they produced because they couldn't get bearings.

我們獲取了這些信息，實際上我們有很多分包商使用我們的硬件，我們的軸承，集成到分包商生產的系統中，然後將其運送給波音或空客。他們正在計劃，他們還沒有達到這個水平。讓我們這樣說吧。所以我們實際上必須打電話給我們的分包商並告訴他們什麼時候下訂單，不是在所有情況下，但在許多情況下，什麼時候下訂單以便趕上並處於適當位置而不是被抓住，因為如果他們很短，他們會責怪軸承人員他們無法運送他們生產的那件硬件，因為他們無法獲得軸承。

So we don't want them to do that. And so we do actually look at their content and help them with their planning. And so that's kind of how we evolved to operate. And so, what was the second part of your question?

所以我們不希望他們那樣做。因此，我們確實會查看他們的內容並幫助他們進行規劃。所以這就是我們進化到運作的方式。那麼，你問題的第二部分是什麼？

In terms of confidence, in terms of forecasting, I guess, like the underlying question to that second part is with the change in your business being more book to ship, how sensitive is that to the economic environment? And would you still see that grow before the mild recession? And how confident do you feel not having a backlog to kind of support that view?

就信心而言，就預測而言，我想，就像第二部分的根本問題是隨著您的業務變化更多地出貨，這對經濟環境有多敏感？在溫和衰退之前，你還會看到這種增長嗎？你覺得沒有積壓來支持這種觀點有多自信？

It depends on sector. We're very confident on aircraft with how to deal with the backlog situation. That's just a standard operating procedure now. In terms of where we stand relative to an industrial mild industrial recession, I don't see a mild industrial recession showing up in the oil and gas area anytime soon.

這取決於行業。我們對飛機如何處理積壓情況非常有信心。這只是現在的標準操作程序。就我們相對於工業溫和工業衰退的立場而言，我認為石油和天然氣領域不會很快出現溫和的工業衰退。

If you look at Dodge, I mean they're really important markets, our grain in aggregate and mining and those are markets that they service principally through industrial distribution. And you look at grain, wheat, corn and rice and soybeans, you look at what's happening in the world, the demand there, I don't see that back in (inaudible). That's food. And the world -- the U.S. feeds to the world, and now it has to feed it more with the problems in Ukraine and Russia. And so I think their grain sector is going to be good. When we look at the construction sector, the aggregate sector, and we talk to our salespeople all the cement plants are at 100% capacity. And before the infrastructure bill really gets released for commercialization.

如果你看看道奇，我的意思是它們是非常重要的市場，我們的穀物和採礦業以及它們主要通過工業分銷服務的市場。你看看穀物、小麥、玉米、大米和大豆，你看看世界上正在發生的事情，那裡的需求，我沒有看到（聽不清）。那是食物。而世界——美國養活了世界，現在它不得不用烏克蘭和俄羅斯的問題來養活它。所以我認為他們的糧食部門會很好。當我們查看建築行業、骨料行業，並與我們的銷售人員交談時，所有水泥廠都處於 100% 的產能。在基礎設施法案真正發布以進行商業化之前。

And so that looks to me like that sector has a net under it. And the other important part of that business is food and beverage. Food and beverage is -- it's just a staple. I mean as long as these machines are operating and producing cans and bottles and boxes and transmitting that material. We're a strong part of that strong part of that business. So I think the Dodge business is very low beta in terms -- when you look at over the past years. It's so much of what they do is a staple of life. The revenues were impressively stable over many years.

因此，在我看來，該部門下面有一張網。該業務的另一個重要部分是食品和飲料。食物和飲料——它只是一種主食。我的意思是，只要這些機器在運行和生產罐頭、瓶子和盒子，並傳輸這些材料。我們是該業務強大部分的重要組成部分。所以我認為道奇業務的貝塔值非常低——當你回顧過去幾年時。他們所做的很多事情都是生活的主要內容。多年來，收入一直非常穩定。

When it comes to the aircraft business, I think you know what's going on there that kind of speaks for itself. And then our marine business is it's -- they're building -- we have we have 10 Virginia ships in our backlog, and we're only showing 1 year of Virginia ships, but we have (inaudible) that's a lot. And we're bidding another 10 or 12, and we're also bidding Colombia. So we have a serious problem in our marine business with regard to our capacity and our footprint. And so we're trying to deal with that right now in terms of staffing and hardware and supply chain. We've got a lot to do in that sector in order to accommodate the objectives of the Navy.

說到飛機業務，我想你知道那裡發生的事情不言自明。然後我們的海事業務是——他們正在建造——我們有 10 艘弗吉尼亞船隻在我們的積壓訂單中，我們只展示了 1 年的弗吉尼亞船隻，但我們有（聽不清）很多。我們正在競標另外 10 或 12 個，我們也在競標哥倫比亞。因此，我們的海運業務在產能和足跡方面存在嚴重問題。因此，我們現在正試圖在人員配備、硬件和供應鏈方面解決這個問題。為了適應海軍的目標，我們在該領域有很多工作要做。

I mean it seems like a good problem to have if you've got strong demand. If I could sneak one more in, Mike. I mean on gross margin, I mean, we looked at the quarter at 40.8% for the 9 months trailing the quarter. And for the actual quarter itself, it's 41.5%. I mean how much of this was like the synergies that you guys had outlined with the acquisition of Dodge. Can you give us an idea of where you are in that synergy extraction and where gross margins could go from here? I mean your historical target was like what 1 percentage point in gross margin each year, you reinvest 50 basis points, you have 50 in terms of the net. Is that how we should think about this? Or should there be more upside from the synergies? I mean this is a pretty big jump versus where you were last year?

我的意思是，如果您有強烈的需求，這似乎是一個好問題。如果我能再偷偷進來一個，邁克。我的意思是在毛利率方面，我的意思是，我們在本季度末的 9 個月裡看到本季度為 40.8%。對於實際的季度本身，它是 41.5%。我的意思是，這在多大程度上類似於你們在收購道奇時概述的協同效應。您能否告訴我們您在協同提取中的位置以及毛利率從這裡可以走向何方？我的意思是你的歷史目標就像每年毛利率 1 個百分點，你再投資 50 個基點，你有 50 個淨值。我們應該這樣想嗎？還是應該從協同效應中獲得更多好處？我的意思是，與去年相比，這是一個很大的飛躍？

So just to give you a range, Dodge for last night -- for the 9 months ended December 21, had an average gross margin of around 35%, 36%. And for the 9 months ended this December, it's around 42.8%. So it's about a 7% to 8% jump in gross margin. That's not all synergy, but say a big half of that or more is synergy based on $700 million run rate of sales. You're talking $40 million to $50 million of improvement in gross margin over a 12-month period since we've owned Dodge.

所以只是給你一個範圍，道奇昨晚——截至 12 月 21 日的 9 個月，平均毛利率約為 35%、36%。在截至今年 12 月的 9 個月中，這一比例約為 42.8%。因此，毛利率大約增長了 7% 到 8%。這並不是所有的協同效應，但可以說其中很大一半或更多是基於 7 億美元的銷售額運行率的協同效應。自從我們擁有道奇以來，你說的是在 12 個月內毛利率提高了 4000 萬到 5000 萬美元。

So I would say on our low-hanging fruit, it's going well on our synergy on the integration of our sales team, it's going well. There's a lot of activity, and I think that's reflected in our industrial growth rates compared to the competition who have already reported this quarter, where the numbers are significantly under ours, from our growth rate. We are working on our manufacturing processes and our manufacturing footprint and on being a better sourcer of intercompany activity between Dodge to RBC and RBC to Dodge and those 2 are kind of the long pole in the tent.

因此，我想說的是我們的低調成果，我們在整合銷售團隊方面的協同作用進展順利，進展順利。有很多活動，我認為這反映在我們的工業增長率與本季度已經報告的競爭對手相比，從我們的增長率來看，這些數字明顯低於我們。我們正在研究我們的製造流程和我們的製造足跡，並致力於成為道奇到 RBC 和 RBC 到道奇之間公司間活動的更好來源，而這兩者就像帳篷裡的長桿。

So we should see the benefit from that activity in fiscal year '25 and '26. So I would say we are definitely ahead of schedule and things that we thought were going to be easy to get done aren't that easy and things that we thought would be very difficult to get done, turned out to be a little easier than we thought at first. So I think we're in pretty good shape.

因此，我們應該在 25 和 26 財年看到該活動的好處。所以我想說我們肯定提前完成了我們認為很容易完成的事情並不是那麼容易，我們認為很難完成的事情結果比我們更容易起初以為。所以我認為我們的狀態非常好。

Kristine, I can add to that a little bit, too. And we acquired Dodge in November of 2021. And we were at a run rate -- an actual rate of sending the previous owner of Dodge, $18 million a year to support computer systems and other activities that couldn't be transferred day 1. We've had a team of dozens of internal people and consultants working on putting Dodge on the RBC computer network. And so as of November 1 this year, that was mission accomplished and so that $18 million goes away.

克里斯汀，我也可以補充一點。我們在 2021 年 11 月收購了道奇。我們的運行速度是——發送道奇前任所有者的實際速度，每年 1800 萬美元用於支持計算機系統和其他無法在第一天轉移的活動。我們有一個由數十名內部人員和顧問組成的團隊致力於將 Dodge 納入 RBC 計算機網絡。因此，截至今年 11 月 1 日，該任務已完成，因此 1800 萬美元消失了。

So that was a big project that had to be done in a fail-safe matter to be -- to complete this acquisition. I think the second, another area that we're working on is in manufacturing integration. Some of the Dodge plants were very full in terms of floor space utilization. And we needed to open up the Dodge floor space in some of those plants to capitalize new products or new manufacturing capacity for existing products that -- where there was market demand, but we're unable to satisfy that market demand because of capacity constraints. So we're in the process of moving some of their processes to Mexico and to open up the floor space so that they can in-source some of their materials that from outside suppliers and increase the throughput capacity for those products.

因此，這是一個必須在故障安全問題上完成的大項目——完成此次收購。我認為第二個，我們正在研究的另一個領域是製造集成。一些道奇工廠的佔地面積利用率非常高。我們需要在其中一些工廠中開闢道奇廠房空間，以利用新產品或現有產品的新製造能力——那裡有市場需求，但由於產能限制，我們無法滿足市場需求。因此，我們正在將他們的一些流程轉移到墨西哥並開放佔地面積，以便他們可以從外部供應商採購一些材料，並提高這些產品的吞吐量。

So where Dodge is constrained, it seems that RBC had a pretty cost-effective solution for that. So this year, we'll be opening up some of the floor space and some of the tach plants by using the -- our Mexican resources. And I think the final thing we did is in November, we ran a manufacturing seminar for 125 to 150 people in Tennessee for manufacturing management and manufacturing engineers that were selected from our 40 plants with the purpose of presenting and exchanging best practices.

因此，在 Dodge 受到限制的地方，RBC 似乎有一個非常划算的解決方案。所以今年，我們將通過使用我們的墨西哥資源來開放一些佔地面積和一些 tach 工廠。我想我們做的最後一件事是在 11 月，我們在田納西州為從我們 40 家工廠中挑選出來的製造管理人員和製造工程師舉辦了一場製造研討會，有 125 到 150 人參加，目的是展示和交流最佳實踐。

And whenever we've done this for the RBC classic business, it's produced amazing results and productivity. And each plant seems to be competitive with the other plan with regard to absorbing new technology or new techniques in improving their operations. So we expect to see a nice benefit from that seminar.

每當我們為 RBC 經典業務這樣做時，它都會產生驚人的結果和生產力。在吸收新技術或改進運營的新技術方面，每個工廠似乎都與其他計劃競爭。因此，我們希望能從該研討會中獲益良多。

Our next question comes from the line of Steve Barger with KeyBanc.

我們的下一個問題來自 Steve Barger 與 KeyBanc 的對話。

Mike, you sound pretty optimistic about end markets on both sides of the business, but orders were down 19% sequentially. Can you talk about what parts of the business that came from? And has that deceleration extended into 4Q?

邁克，你聽起來對企業雙方的終端市場都很樂觀，但訂單環比下降了 19%。你能談談業務的哪些部分來自？這種減速是否延續到第四季度？

The biggest impact on the backlog was our marine business. So for Marine in September, our backlog was $118 million, and in December, it dropped to $91 million. So that's $26 million, $27 million drop. And the reason is because we only reflect in backlog, which shippable in the Marine product line in the next 12 months. But the gross backlog, Marine's total backlog that shippable past 12 months is $179.9 million compared to September of $170 million. So it's actually up $10 million. So it kind of -- when we put in the total backlog, $25 million has a pretty big impact on the overall backlog. It's just mainly due to the timing of shipments on our submarine business and how we account for that.

對積壓影響最大的是我們的海運業務。因此，對於 9 月份的 Marine，我們的積壓訂單為 1.18 億美元，而在 12 月份，它下降到 9100 萬美元。所以這是 2600 萬美元，下降了 2700 萬美元。原因是因為我們只反映在未來 12 個月內可在海洋產品線中發貨的積壓訂單中。但總積壓訂單，Marine 過去 12 個月可發貨的總積壓訂單為 1.799 億美元，而 9 月份為 1.7 億美元。所以它實際上增加了1000萬美元。所以它有點 - 當我們放入總積壓時，2500 萬美元對整體積壓產生了相當大的影響。這主要是由於我們潛艇業務的發貨時間以及我們如何計算這一點。

And then Dodge was down about 10 -- September Dodge was about $100 million in backlog and they were down to $85 million. So their supply chain was freeing up in their capacity, and they're catching up to their past dues that they had in (inaudible). So those are the big 2 contributors.

然後道奇下降了大約 10——9 月道奇的積壓訂單約為 1 億美元，而他們下降到了 8500 萬美元。所以他們的供應鏈正在釋放他們的能力，他們正在追趕他們過去的欠款（聽不清）。所以這些是最大的 2 個貢獻者。

Nothing else really notable from an end market standpoint as to what decelerated.

從終端市場的角度來看，沒有什麼其他真正值得注意的是減速。

No, it's not -- Steve, it's not decelerating, it's accelerating. We have to -- we're adding to our legal staff because we have contract. So many contracts that have to be inked negotiated. And so there was -- we booked $100 million worth of new contracts between December and January. I suspect those even haven't even hit the backlog yet.

不，它不是——史蒂夫，它不是在減速，而是在加速。我們必須——我們正在增加我們的法律人員，因為我們有合同。如此多的合同必須通過談判簽署。因此，我們在 12 月至 1 月期間簽訂了價值 1 億美元的新合同。我懷疑那些甚至還沒有達到積壓。

And Dan, your comment on the $50 million in synergy in the past year or so, if I'm remembering right, the original target was $70 million to $100 million over 5 years. So now that you've had this for a while, has this changed the upside target? I guess, in terms of either time or dollars, how are you thinking about what's possible.

丹，你對過去一年左右 5000 萬美元協同效應的評論，如果我沒記錯的話，最初的目標是在 5 年內達到 7000 萬到 1 億美元。所以現在你已經有一段時間了，這是否改變了上行目標？我想，就時間或金錢而言，您如何看待可能發生的事情。

I think we're still targeting that range and as Mike said and what I said a little earlier on some of the long pole in the tent, the manufacturing integration that we're doing, it just takes a little longer. You have to pull machines out of one plant, set them up in another plant, teach our plan how to make the product, put it through testing. It could be 6 to 7 months, make sure it's acceptable to the marketplace and then be able to supply it to the marketplace. And I think every year, we'll just continue to see the activity between the Dodge sales team and the RBC classic sales team continue to increase, where RBC classic focuses more on OEM type activity and Dodge focuses more on distribution activity.

我認為我們仍在瞄準這個範圍，正如邁克所說的那樣，我早些時候在帳篷裡的一些長桿上說過，我們正在做的製造整合，只是需要更長的時間。你必須把機器從一個工廠拉出來，在另一個工廠安裝它們，教我們的計劃如何製造產品，讓它通過測試。可能需要 6 到 7 個月，確保它能被市場接受，然後才能供應給市場。而且我認為每年，我們都會繼續看到道奇銷售團隊和 RBC 經典銷售團隊之間的活動繼續增加，其中 RBC 經典更側重於 OEM 類型的活動，而道奇更側重於分銷活動。

It seems like most companies are working on some sort of digital strategy. Do you guys have any initiatives underway at RBC designed to maximize sales efforts or optimize manufacturing from a data collection and standpoint?

似乎大多數公司都在製定某種數字戰略。你們有沒有在 RBC 採取任何旨在最大化銷售努力或從數據收集和角度優化製造的計劃？

Yes. Sure. We do it on both sides. On the front-end, Dodge uses the front-end of their warehouse consortium that they're part of, and it's called PTplace, and that's where independent distributors and customers can come through and electronically place orders and get them delivered in 12 to 24 hours. RBC always had eShop or front-end, where our independent distributors also can come online and guaranteed shipping in 12 to 24 months to keep them going. And we've been making more advances on the manufacturing side, on digital, data collection, data mining to better run the plants.

是的。當然。我們在兩邊都這樣做。在前端，Dodge 使用他們所屬的倉庫聯盟的前端，稱為 PTplace，這是獨立分銷商和客戶可以通過電子方式下訂單並在 12 到 24 天內交付的地方小時。 RBC 一直有 eShop 或前端，我們的獨立分銷商也可以在 12 到 24 個月內上線並保證發貨，以保持他們的運轉。我們一直在製造方面、數字化、數據收集、數據挖掘方面取得更多進展，以更好地運營工廠。

So if you walk through one of the plants now and took a tour, you'd see a lot of visual screens, a lot of activity at each manufacturer cell reflecting information from the machines from the operator and where they are compared to the standard that they're running. So I think that part of it has actually become more and more important to our business as we move forward.

因此，如果您現在走過其中一家工廠並進行參觀，您會看到很多可視屏幕，每個製造商單元的大量活動反映了來自操作員的機器的信息以及它們與標準的比較他們在跑。所以我認為，隨著我們的前進，這一部分對我們的業務實際上變得越來越重要。

Has that had a material benefit to margins yet or is that more on the [income]?

這對利潤率有實質性好處嗎，還是對 [收入] 有更多好處？

No, it all accrues. Not always. It's accruing to margins. It all has an impact. Exactly right. By reducing touch labor, increase in your efficiencies, and obviously for customers being able to go online, place an order and be able to get their delivery in 12 to 24 months, weeks and days, hours, [Inaudible].

不，這一切都會累積。不總是。它正在增加利潤。這都有影響。非常正確。通過減少接觸人工，提高效率，顯然讓客戶能夠上網、下訂單並能夠在 12 到 24 個月、幾週、幾天、幾小時內交貨，[聽不清]。

That guy better in a hurry.

那傢伙最好快點。

Especially when you have – in some of our plants, we have a lot of robotic operations, and so you don't have any people in that sector for every minute of the operating day. And so you need a screen like this to tell you if there's a problem, if the machine is idle, if it's on set up, and so that the manager can dispatch technicians or other talent to remedy the problem.

尤其是當你有——在我們的一些工廠裡，我們有很多機器人操作，所以你沒有人在那個部門工作一天的每一分鐘。所以你需要一個這樣的屏幕來告訴你是否有問題，機器是否空閒，是否正在設置，這樣經理就可以派遣技術人員或其他人才來解決問題。

Our next question comes from the line of Seth Weber with Wells Fargo.

我們的下一個問題來自 Seth Weber 與 Wells Fargo 的對話。

I wanted to go back to the strong gross margin in the quarter. Can you just give us any color on what you're seeing the pricing environment, price cost what your expectations are for price costs going forward, and then just whether you expect to retain price increases if inflation starts to come down?

我想回到本季度強勁的毛利率。您能否就您所看到的定價環境，價格成本，您對未來價格成本的預期，以及如果通貨膨脹開始下降，您是否希望保持價格上漲，給我們任何顏色？

Well, I mean, the pricing environment is positive and I think I've said enough on that. And so the inflation. And the contracts that we typically negotiate have an inflation index or some metrics tied to some standard bureau of economic standard that allows us to change pricing if there's a change in material cost or if there's a change in labor cost or something else happens, change in volume. So to some extent that's why we have a backlog in our contract – legal side of our contract management because these contracts now are more difficult and timely to manage.

嗯，我的意思是，定價環境是積極的，我想我已經說得夠多了。通貨膨脹也是如此。我們通常談判的合同有一個通貨膨脹指數或一些與經濟標準局相關的指標，如果材料成本發生變化，或者如果勞動力成本發生變化或發生其他事情，我們可以改變定價，改變體積。所以在某種程度上，這就是我們的合同積壓的原因——我們合同管理的法律方面，因為這些合同現在更難管理，也更及時。

I guess maybe just historically in a deflationary environment, have you given back pricing or have you historically held price increases?

我想也許只是在歷史上處於通貨緊縮的環境中，您是否退還了定價或您是否一直持有價格上漲？

I can't remember a single case where we've given anything back. Now maybe there is one, but it's just not coming up.

我不記得我們回饋任何東西的單一案例。現在也許有一個，但它只是沒有出現。

And then maybe just pivoting for a minute, just you guys have talked about adding capacity and adding resources and things like that. Can you just level set us kind of where you're are, where you're adding some of these additions and just like how we should think about your – this ramp, I guess, I don't know if it's through next year or just sort of how we should be able to think about your ability to produce higher volumes going forward?

然後也許只是旋轉一分鐘，你們剛剛談到了增加容量和增加資源之類的事情。你能不能讓我們知道你在哪裡，你在哪裡添加這些添加物，就像我們應該如何考慮你的 - 這個斜坡，我想，我不知道它是否通過下一個一年或只是我們應該如何考慮您未來生產更高產量的能力？

Well, first of all, for the third quarter, our SG&A was a little higher than normal simply because there's – production in sales are usually down because of the number of production days, but SG&A is like constant fixed cost through a quarter. So that – we expect that to normalize into the mid-15s by the end of the fourth quarter. We pretty much stay there. It's a matter of getting on top of your cost base and as we increase our sales and production in a given quarter, we may revisit what we're spending on SG&A and let the company earn more SG&A credit. But we're not going – we're just not going to dump in the SG&A and hope that it gets absorbed, they have to earn it. So everybody understands that. And that's the way it works.

好吧，首先，對於第三季度，我們的 SG&A 略高於正常水平，因為 - 由於生產天數的原因，產量和銷售額通常會下降，但 SG&A 就像一個季度的固定固定成本。因此，我們預計到第四季度末，這種情況會正常化到 15 年代中期。我們幾乎呆在那裡。這是一個控製成本基礎的問題，隨著我們在給定季度增加銷售和產量，我們可能會重新審視我們在 SG&A 上的支出，並讓公司獲得更多的 SG&A 信貸。但我們不會 - 我們只是不會傾倒在 SG&A 中並希望它被吸收，他們必須賺取它。所以每個人都明白這一點。這就是它的工作方式。

So a mid-15% SG&A level is a good way to think about the business going forward?

那麼 15% 的 SG&A 水平是考慮未來業務的好方法嗎？

Yes.

是的。

Our next question comes from the line of Michael Ciarmoli with Truist.

我們的下一個問題來自 Michael Ciarmoli 與 Truist 的對話。

Mike, just on this gross margin and what we saw on the quarter, and obviously, piecing together what you just said, everything accrues, so it sounds like on a go forward basis, I mean, I don't want to get out in front of our (inaudible) here, but it sounds like you've got a new floor here on gross margins, or should we be thinking about anything that might push these margins down, anything from a mix standpoint that we should be looking at?

邁克，就這個毛利率和我們在本季度看到的情況，很明顯，把你剛才說的拼湊在一起，一切都會累積，所以聽起來像是在向前發展的基礎上，我的意思是，我不想退出在我們的（聽不清）前面，但聽起來你在這裡的毛利率有一個新的下限，或者我們是否應該考慮任何可能壓低這些利潤率的事情，從我們應該考慮的混合角度來看的任何事情？

I don't think so. I was actually a little disappointed in our gross margin in the quarter, third quarter.

我不這麼認為。實際上，我對第三季度的毛利率感到有些失望。

Just on aerospace, I understand what you said, and earlier this week, we heard spirit kind of spill the beans. I guess they're going to 38 on the MAX, then 42 in October. Presumably you're kind of at those rates or prep in and kind of aligned?

就航空航天而言，我理解你所說的，本週早些時候，我們聽到了一些精神問題。我猜他們將在 MAX 上達到 38 個，然後在 10 月份達到 42 個。大概你有點像那些利率或準備好並且有點一致？

Yes. I mean, spirit spilled the beans. I had the beans right here, but I didn't spill them.

是的。我的意思是，精神洩漏了豆子。我把豆子放在這裡，但我沒有灑出來。

Just on – I know we've been trying to get at this. You mentioned, Dodge not a lot of backlog, I guess, and I think you talked about the daily orders. I mean, are you noticing anything from those daily ordering trends of late, I mean, I guess we're all trying to figure out here, the global macro backdrop, but what are the daily orders kind of telling you as you're looking real time trying to gauge the health of the industrial markets aside from – I know you talked about the strength in oil and gas?

就在 €“我知道我們一直在努力做到這一點。你提到，道奇沒有很多積壓，我猜，我想你談到了每日訂單。我的意思是，您是否注意到最近那些每日訂單趨勢中的任何事情，我的意思是，我想我們都在努力弄清楚全球宏觀背景，但是當您正在尋找時，每日訂單會告訴您什麼實時嘗試衡量工業市場的健康狀況——我知道你談到了石油和天然氣的實力？

Well the daily orders for Dodge in the month of January, the strength of those orders surprised us. And that was a pleasant surprise. So, again, I have to – I'm forced to do the job that Chairman Powell does for a living and try to figure out what the next two months are going to be like. But that's – January was very positive. We're still constrained at Dodge on very key high margin products that just can't get our leg over the wall on it. And I think we're going to be there for another year.

好吧，一月份道奇的每日訂單，這些訂單的強度讓我們感到驚訝。這是一個驚喜。所以，我又一次不得不——我被迫做鮑威爾主席謀生的工作，並試圖弄清楚接下來兩個月會是什麼樣子。但那是——一月份非常積極。我們在道奇仍然受到非常關鍵的高利潤產品的限制，這些產品無法讓我們的腿越過牆壁。而且我認為我們將在那裡再呆一年。

Last quick one for me. I think you mentioned Europe and maybe some specific OEM weakness that you saw anything notable with certain OEMs or just kind of isolated?

最後一個對我來說很快。我想你提到了歐洲，也許還有一些特定的 OEM 弱點，你看到某些 OEM 有什麼值得注意的或只是孤立的？

For Europe, I think the OEM weakness that we saw is pretty much in the machine tools sector in China, which is mainly machine tools.

對於歐洲，我認為我們看到的 OEM 弱點幾乎是在中國的機床行業，主要是機床。

Our next question comes from the line of Joe Ritchie with Goldman Sachs.

我們的下一個問題來自高盛的喬里奇。

So it sounds like Dodge orders accelerated in January. I'm curious, I was just trying to back into it, but what was Dodge revenue for the quarter and what was it up or down organically?

所以聽起來道奇訂單在 1 月份加速了。我很好奇，我只是想回到它，但道奇本季度的收入是多少，它的有機增長或下降是多少？

So Dodge’s revenue in the third quarter was 174.8, and it was up 8% from last year organically.

所以道奇第三季度的營收為174.8，比去年有機增長8%。

And so, I'm just curious, and I know that it is putting your (inaudible) a little bit, but a lot of the industrial companies that we cover, some of them are kind of flashing yellow on their businesses, downturning or seeing some destock from their distributors. I recognize that two thirds of your industrial sales now go through distribution. So I'd be curious to hear, what you're seeing on the distribution side. I know that you called out a little bit of destock and then how are you thinking about that as we progress through calendar year 2023?

所以，我只是好奇，我知道這讓你的（聽不清）有點，但我們涵蓋的很多工業公司，其中一些公司的業務有點黃燈，低迷或看到一些從他們的經銷商那裡去庫存。我知道你們三分之二的工業銷售額現在通過分銷進行。所以我很想知道您在分銷方面看到了什麼。我知道您呼籲減少庫存，然後隨著我們在 2023 日曆年的進展，您如何看待這一點？

Well, I think the fourth quarter calendar quarter for the distributors is normally an unusual quarter. And we normally see seasonality in that quarter because the distributors are trying to meet some working capital target that they had in order to achieve their bonuses for the year. So they really clamp down on their hardware purchases. And typically the business can't really run effectively there. So you usually see a pretty good snapback in the fourth quarter, and I think that was the January effect and it probably is going to continue through February.

好吧，我認為對於分銷商來說，第四季度日曆季度通常是一個不尋常的季度。我們通常會在那個季度看到季節性，因為分銷商正在努力實現他們為獲得當年的獎金而製定的一些營運資金目標。所以他們真的限制了他們的硬件購買。通常情況下，企業在那裡無法真正有效地運行。所以你通常會在第四季度看到一個很好的反彈，我認為這是一月份的影響，它可能會持續到二月份。

If I could maybe sneak one more in. Your defense business, you called out, I saw in the Q some of the decline there was due to revenue recognition. Like is there any dollar amount, maybe you can kind of quantify, how much of the down revenues were a timing impact?

如果我能再偷偷進來一次。你的國防業務，你喊道，我在 Q 中看到一些下降是由於收入確認。就像有多少美元一樣，也許你可以量化，有多少收入減少是時間影響？

We don't have that number in front of us, but I know, on the defense side, I know that some of the operations -- in order for us to ship a lot of our product, it has to be bought off by a government inspector. And sometimes our product isn't ready until the third week, sometimes the fourth week of the month. And it's hard to get a government inspector into your plant when it was the third week of the month and the month is December. So we definitely had some of that going now.

我們面前沒有那個數字，但我知道，在防禦方面，我知道一些操作——為了讓我們運送很多產品，它必須被一個政府檢查員。有時我們的產品要到第三週才能準備好，有時是一個月的第四周。並且在該月的第三週並且該月是 12 月時，很難讓政府檢查員進入您的工廠。所以我們現在肯定有一些。

Yes. It's about $2 million to $3 million.

是的。大約是200萬到300萬美元。

Our next question comes from the line of Elizabeth Grenfell with Bank of America.

我們的下一個問題來自美國銀行的 Elizabeth Grenfell。

I was hoping you could give us a little color on your expectations for revenue growth in the fourth quarter. I think your guide implies somewhere between lower, obviously than it was in the third quarter, and I was just wondering what that's attributable to where you're seeing. Is the slowdown on the items you mentioned earlier or somewhere else?

我希望你能給我們一些關於你對第四季度收入增長的預期的顏色。我認為你的指南暗示介於兩者之間，顯然比第三季度低，我只是想知道這歸因於你所看到的地方。您之前提到的項目或其他地方的速度放緩了嗎？

It's pretty much the fact that we're not going to see any revenues out of that sector where they were building warehouses as fast as they could build warehouses. As a matter of fact, last July, those same people were visiting us, asking us what it would take to triple our capacity. And so that's kind of a boomer bus area and it's busted right now and that's sort of $15 million to $25 million a year annualized and it doesn't have particularly good margins, so frankly we don't really miss it.

事實上，我們不會看到他們建造倉庫的速度與他們建造倉庫的速度一樣快的那個部門的任何收入。事實上，去年 7 月，同樣是這些人來拜訪我們，詢問我們需要什麼才能將我們的能力提高三倍。所以那是一個繁榮的公交車區，現在已經破產了，每年大約有 1500 萬到 2500 萬美元，而且利潤率不是特別高，所以坦率地說，我們並沒有真正錯過它。

And then you hit on – you said there's some past dues that were the Dodge work through. How many past dues are still (technical difficulty).

然後你突然想到——你說有一些過去的會費是道奇的工作。還有多少過去的會費（技術難度）。

The level of past due at Dodge? Their backlog. Their backlog is past due. Those are orders that…

道奇的逾期水平？他們的積壓。他們的積壓工作已經過期。這些命令......

$85 million left in backlog at this point.

此時還剩下 8500 萬美元的積壓訂單。

Those are orders that are shippable, but can't be shipped for reasons that we can't get supply chain organized.

這些是可以發貨的訂單，但由於我們無法組織供應鏈而無法發貨。

There are no further questions in the queue. I'd like to hand the call back to Dr. Hartnett for closing remarks.

隊列中沒有其他問題。我想將電話轉回 Hartnett 博士以作結束語。

Okay, well I appreciate all the interest in the call today and look forward to speaking to you again. I guess that'll be in May. So thanks for your participation and good day.

好的，非常感謝大家對今天的電話感興趣，並期待再次與您交談。我想那將是在五月。感謝您的參與和美好的一天。

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。此時您可以斷開線路並度過美好的一天。