R C M Technologies Inc (RCMT) 2023 Q3 法說會逐字稿

Good morning and thank you for joining us. This is Kevin Miller, Chief Financial Officer of RCM Technologies. I am joined today by Brad Vizi , RCM's Executive Chairman. Our presentation in this call will contain forward-looking statements. The information contained in the forward-looking statements is based on our beliefs, estimates, assumptions and information currently available to us, and these matters may materially change in the future.

早安，感謝您加入我們。我是凱文‧米勒 (Kevin Miller)，RCM Technologies 財務長。今天 RCM 執行主席 Brad Vizi 也加入了我的行列。我們在本次電話會議中的演示將包含前瞻性陳述。前瞻性陳述中包含的資訊是基於我們的信念、估計、假設和當前可獲得的信息，這些事項將來可能會發生重大變化。

Many of these beliefs, estimates, assumptions are subject to rapid changes. For more information on our forward-looking statements and the risks and uncertainties and other factors to which they are subject, please see the periodic reports on Forms 10K, 10Q and 8K that we file with the SEC, as well as our press releases that we issue from time to time.

許多這些信念、估計、假設都會快速改變。有關我們的前瞻性陳述以及它們所受的風險和不確定性以及其他因素的更多信息，請參閱我們向 SEC 提交的 10K、10Q 和 8K 表格定期報告，以及我們發布的新聞稿。不時出現問題。

I will now turn the call over to Brad Vizi, Executive Chairman, to provide an overview of RCM's operating performance during the quarter.

我現在將把電話轉給執行主席 Brad Vizi，概述 RCM 在本季的營運表現。

Thanks, Kevin. Good morning, everyone. Consistent with our prior update, the business cadence continues to accelerate as we move through the year. As such, the fourth quarter will be our strongest and we expect to exhibit EBITDA growth year-over-year. Also, of note, the outlook for 2024 and beyond is bright. Our ability to parlay our high-value capabilities into long-term partnerships where we continue to deliver increased value into strategic accounts has taken hold.

謝謝，凱文。大家，早安。與我們先前的更新一致，隨著這一年的推移，業務節奏繼續加快。因此，第四季度將是我們最強勁的季度，我們預計 EBITDA 將年成長。此外，值得注意的是，2024 年及以後的前景是光明的。我們將高價值能力融入長期合作夥伴關係的能力已經確立，我們將繼續為策略客戶提供更高的價值。

We believe our collection of high-value capabilities is unique to the marketplace, serving as a key differentiator for which to land and expand. Internally, we continue to build on our unique structure that fosters innovation and increased depth of penetration within each of our end markets, now increasingly strengthening points of collaboration between groups.

我們相信，我們的高價值能力集合在市場上是獨一無二的，是落地和擴張的關鍵差異化因素。在內部，我們繼續建立獨特的結構，促進創新並提高每個終端市場的滲透深度，現在越來越加強集團之間的合作點。

Our ability to continue to execute this strategy will grow increasing with increasing success will further fuel growth future growth into our secular end markets for years to come. Since we last spoke, progress has been made across each of our divisions that I am excited to discuss in more detail.

隨著成功的不斷增加，我們繼續執行這項策略的能力將不斷增強，這將進一步推動未來幾年我們在長期終端市場的成長。自從我們上次交談以來，我們每個部門都取得了進展，我很高興能更詳細地討論這些進展。

Starting with our Healthcare division, the school year is off to a strong start for our health care team. Notably, we continue to add new school accounts, while growing our presence within our existing client base. We attribute ongoing success to the goodwill. We continue to build upon in this end market, underpinned by our commitment to supplying highly qualified health care professionals to education institutions and other health care facilities nationwide.

從我們的醫療保健部門開始，我們的醫療保健團隊在本學年有了一個良好的開端。值得注意的是，我們繼續增加新的學校帳戶，同時擴大我們在現有客戶群中的影響力。我們將持續的成功歸功於商譽。我們致力於向全國教育機構和其他醫療機構提供高素質的醫療保健專業人員，以此為基礎，我們將繼續在這個終端市場上發展。

Behavioral Health continues to drive our business at an increasing rate. And we believe we are in the early innings of this much-needed upgrade to our nation's social infrastructure. Also with increased demand for behavioral health services comes the opportunity to further service our clients with other critical health care needs, cementing our status as a partner, not just another vendor, which is core to the RCM business model.

行為健康繼續以越來越快的速度推動我們的業務。我們相信，我們正處於國家社會基礎設施急需升級的初期階段。此外，隨著行為健康服務需求的增加，我們有機會進一步為客戶提供其他關鍵的醫療保健需求服務，鞏固我們作為合作夥伴的地位，而不僅僅是另一個供應商，這是RCM 業務模式的核心。

RCM healthcare's tailored staffing solutions, coupled with a rigorous selection process, have bolstered our reputation in education domain, solidifying our status as the leader in this segment of the market and the gold standard treating our nations here. As we move forward, we remain committed to sustainable growth, innovation and the highest standard of service.

RCM 醫療保健定制的人員配置解決方案加上嚴格的選拔流程，增強了我們在教育領域的聲譽，鞏固了我們作為該細分市場領導者的地位以及對待我們國家的黃金標準。在我們前進的過程中，我們仍然致力於永續成長、創新和最高標準的服務。

We anticipate further expansion into new markets and the development of cutting edge staffing solutions that meet the evolving needs of the healthcare industry. Our dedication to improving the quality of health care services positions us to continue exceeding the expectations of our stakeholders, driving value for our shareholders and positively impacting health care and education in the years ahead.

我們預計將進一步拓展新市場並開發尖端的人員配置解決方案，以滿足醫療保健產業不斷變化的需求。我們致力於提高醫療保健服務質量，使我們能夠繼續超越利益相關者的期望，為股東創造價值，並在未來幾年對醫療保健和教育產生積極影響。

Ability to build good businesses while serving a critical need and society and strengthening our communities resides at the core of our companies values. Our life sciences and information technology group continues to emerge as a shining star in the portfolio. Though the macroeconomic landscape in information technology was challenging in 2023, including budget reductions across several sectors from high tech to financial services, our decision to continue investing in market segments, demonstrating secular growth has paid off.

我們公司價值觀的核心是能夠在滿足關鍵需求和社會需求的同時打造良好的業務並加強我們的社區。我們的生命科學和資訊技術團隊繼續成為產品組合中閃亮的明星。儘管 2023 年資訊科技領域的宏觀經濟情勢充滿挑戰，包括從高科技到金融服務等多個行業的預算削減，但我們繼續投資細分市場的決定，表明長期成長已獲得回報。

The group's overall EBITDA contribution is up nearly 35% year-over-year. As we continue to double down the winning formula, just this last quarter, we have expanded our life sciences practice in regulatory compliance, ERP design and implementation. We are building out our organizational change management practice, which will further allow us to support our clients across their entire business landscape, while providing improved value through our current delivery models. We continue to see positive trends entering the last leg of 2023 and have a positive outlook for 2024.

該集團的整體 EBITDA 貢獻年增近 35%。隨著我們繼續加倍努力，就在上個季度，我們擴大了在法規遵循、ERP 設計和實施方面的生命科學實踐。我們正在建立我們的組織變革管理實踐，這將進一步使我們能夠在整個業務領域為客戶提供支持，同時透過我們目前的交付模式提供更高的價值。我們繼續看到積極的趨勢進入 2023 年的最後階段，並對 2024 年抱持正面的展望。

In engineering, energy services strong execution demonstrates increasing leverage in the model, highlighted by continued delivery of milestones on time for several world-class projects, resulting in client satisfaction and solid gross margins. Technical highlights include successfully completing site acceptance tests as part of an E-House high-voltage application utilizing the IEC61850 protocol.

在工程領域，能源服務的強大執行力表明該模型的槓桿作用不斷增強，幾個世界級專案持續按時交付里程碑突出了這一點，從而提高了客戶滿意度和穩定的毛利率。技術亮點包括利用 IEC61850 協議成功完成現場驗收測試，作為 E-House 高壓應用的一部分。

In addition, we were approached pursue an offshore high-voltage GIS substation with a large international operating OEM as part of a potential long-term partnership. Also, several vital deliverables were executed on time for a critical infrastructure project, the major utility client in New York. This project represents a significant milestone in the clean energy transition in the Northeast United States.

此外，我們也與一家大型國際營運 OEM 接洽尋求建造海上高壓 GIS 變電站，作為潛在長期合作夥伴關係的一部分。此外，紐約主要公用事業客戶的關鍵基礎設施項目的幾個重要交付成果也按時執行。該項目是美國東北部清潔能源轉型的一個重要里程碑。

In Europe, our newly established office in Germany received recognition as a strong technical partner to support turnkey projects that will transfer the power supply to a carbon-free electric grid. We are in the late stages of negotiation for our second major project award, demonstrating increasing client confidence. To serve the increased demand for EPC projects in 2024 and beyond, energy services will further expand its EPC capabilities in Europe and North America. We believe the recent addition of a high-profile industry veteran to RCM energy services leadership team will accelerate the award and execution of EPC projects in the United States and further enable us to prudently evaluate new regional areas such as South America.

在歐洲，我們在德國新成立的辦事處被視為強大的技術合作夥伴，以支援將電力供應轉移到無碳電網的交鑰匙計畫。我們正處於第二個重大專案合約談判的後期階段，這表明客戶信心不斷增強。為了滿足 2024 年及以後 EPC 專案不斷增長的需求，能源服務公司將進一步擴大其在歐洲和北美的 EPC 能力。我們相信，RCM能源服務領導團隊最近增加了一位備受矚目的行業資深人士，將加速美國EPC項目的授予和​​執行，並進一步使我們能夠審慎評估南美洲等新區域。

RCM thermal kinetics continues to execute detailed engineering contracts for distillation, evaporation and dehydration technologies employed in carbon capture and sustainable aviation fuel markets. On the equipment side, the office is currently executing three concurrent projects for a zero-carbon chemical manufacturing customer, primarily using evaporation and crystallization technologies.

RCM熱動力學繼續執行碳捕獲和可持續航空燃料市場中使用的蒸餾、蒸發和脫水技術的詳細工程合約。在設備方面，該辦公室目前正在為零碳化學品製造客戶執行三個平行項目，主要使用蒸發和結晶技術。

The main driver for successfully awarding the orders to RCM thermal kinetics is the advanced energy integration techniques utilized in the design. The RCM thermal kinetics engineering expertise related to energy integration of extensive chemical processes has an obvious tie-in to these environmentally responsible projects. It is why customers are standardizing on RCM thermal kinetics as their process design and equipment supplier.

RCM 熱動力學成功獲得訂單的主要驅動力是設計中採用的先進能量整合技術。 RCM 熱動力學工程專業知識與廣泛的化學過程的能量整合相關，與這些對環境負責的項目有著明顯的聯繫。這就是為什麼客戶作為其製程設計和設備供應商對 RCM 熱動力學進行標準化的原因。

We recently opened RCM thermal kinetics testing facility is beginning to gain traction. The coming weeks to purchase orders are expected from clients requesting process feasibility and product profile testing. The office has greatly strengthened ties to local universities to support staffing of the testing lab through chemical engineering internships. The customer support offered through process testing has a track record of receiving additional project orders.

我們最近開設的 RCM 熱動力學測試設施開始受到關注。預計客戶將在未來幾週內發出採購訂單，要求進行製程可行性和產品概況測試。該辦公室極大地加強了與當地大學的聯繫，透過化學工程實習來支持測試實驗室的人員配備。透過流程測試提供的客戶支援具有接收額外項目訂單的記錄。

It provides the benefit of process risk reduction for both the client and RCM thermal kinetics. We expect lab utilization to ramp up in 2024 for new customers and testing related to existing customer projects. In addition to our lab, the engineers are now working on the design of a 30 gallon crystallization pilot plant. RCM thermal kinetics receives a large number of crystallization inquiries more than any other technology crystallization projects benefit from the ability to conduct robust piloting trials to produce product samples for our customers. The current schedule would have this pilot testing service ready for client use in May of 2024.

它為客戶和 RCM 熱動力學提供了降低製程風險的好處。我們預計 2024 年新客戶和現有客戶專案相關測試的實驗室使用率將有所提高。除了我們的實驗室之外，工程師現在正在設計一個 30 加侖的結晶試驗工廠。 RCM 熱動力學收到的大量結晶詢問比任何其他技術結晶項目都多，因為我們能夠進行穩健的試驗，為客戶生產產品樣品。目前的計畫是，這項試點測試服務將於 2024 年 5 月可供客戶使用。

RCM thermal kinetics recently presented at the advanced Bio Leadership Conference in San Francisco. The team has been a member of ABLC for many years and benefits from building relationships with emerging companies interested in developing new processes that require our technologies. Many of our customers today were cultivated from ABLC meetings over the past 10 years.

RCM 熱動力學最近在舊金山舉行的高級生物領導會議上進行了介紹。該團隊多年來一直是 ABLC 的成員，並受益於與有興趣開發需要我們技術的新流程的新興公司建立的關係。我們今天的客戶很多都是過去10年ABLC會議培養出來的。

The sales team has also attended the aluminum USA show. RCM thermal kinetics has successfully supplied environmental equipment to aluminum production plants in the United States. The team remains focused on continuing its emergence as a responsible and sustainable chemical process design market leader. As for our aerospace team, the growth and recovery, we expect mid year has begun to materialize in the third quarter with nine new clients resulting in our weekly run rate and headcount increasing, nearing our historical numbers.

銷售團隊也參加了美國鋁展。 RCM熱動力學已成功為美國鋁生產廠提供環保設備。該團隊仍然致力於繼續成為負責任且可持續的化學工藝設計市場領導者。至於我們的航空航太團隊，我們預計年中的成長和復甦已在第三季開始實現，九個新客戶導致我們的每週運行率和員工人數增加，接近我們的歷史數字。

We still believe, we have the potential to close three more new clients before the end of the year, totaling 12 for 2023. We also continue to increase the number of hires quarter-over-quarter with a total of 40 in the third quarter compared to 30 in the second quarter of 2023. This continued expansion includes new clients in defense, including sea vessels and land vehicle programs and new vertical lift customers.

我們仍然相信，我們有潛力在年底前再關閉 3 個新客戶，到 2023 年總計 12 個。我們還繼續季度環比增加招聘人數，與上一季度相比，第三季度的員工總數為 40 個到2023 年第二季將增加到30 個。這種持續擴張包括國防領域的新客戶，包括海上船舶和陸地車輛專案以及新的垂直升降機客戶。

Expanding existing and new clients with our core expertise in new arenas provides us much desired depth and breadth of the organization and firmly positions us for 2024. As the management team within some of our existing clients continues to change, we have utilized our long-term relationships, reputation and expertise to stay relevant.

利用我們在新領域的核心專業知識拓展現有和新客戶，為我們提供了非常理想的組織深度和廣度，並為我們在2024 年奠定了穩固的地位。隨著一些現有客戶的管理團隊不斷變化，我們利用了我們的長期策略關係、聲譽和專業知識，以保持相關性。

We believe we will see traction on one of our most significant awards redesign center well into 2026. We continue to market our digital conversion expertise and methodology within aftermarket and our model-based design prowess, which now expands across multiple clients throughout the United States. We have multiple contracts with large OEMs finalized and executed in 2023. We also await a large all-encompassing RFP from one of the largest defense contractors, providing a vehicle to support this client across all engineering and aftermarket disciplines.

我們相信，到2026 年，我們最重要的獎項重新設計中心之一將受到關注。我們將繼續在售後市場推廣我們的數位轉換專業知識和方法，以及我們基於模型的設計能力，這些能力現已擴展到美國各地的多個客戶。我們與大型 OEM 簽訂了多份合同，並於 2023 年敲定並執行。我們還在等待最大的國防承包商之一發出的大型全方位 RFP，為該客戶提供跨所有工程和售後市場學科的支援。

We will continue to expand our reach with these clients and prioritize these types of engagements in 2024. We continue to market the S factor which broadens our reach beyond S1,000D publications into S2,000M material management as 3,000 out logistics support analysis as 4,000 paid maintenance and S5,000F in-service data feedback.

我們將繼續擴大與這些客戶的聯繫，並在2024 年優先考慮這些類型的合作。我們繼續推銷S 因素，將我們的業務範圍從S1,000D 出版物擴大到S2,000M 材料管理，即3,000 項物流支援分析為4,000 項付費維護和S5,000F在役資料回饋。

We are happy to report that we have our first launch client, which we will support in these expanded areas beyond technical publications. We have reorganized the aftermarket arena to provide opportunities in other areas for our team members, and we have increased our business development team for the first time in two years.

我們很高興地報告，我們有了第一個啟動客戶，我們將在技術出版物之外的這些擴展領域提供支援。我們重組了售後市場領域，為我們的團隊成員提供其他領域的機會，並且兩年來首次增加了我們的業務開發團隊。

We are excited about the opportunities that this team has already uncovered. Before turning the call to Kevin, I would like to reiterate the financial expectations provided during the third quarter. We continue to anticipate EBITDA growth during the fourth quarter, a resumption toward our long-term objective which is also in line with our expectation for 2024.

我們對該團隊已經發現的機會感到興奮。在打電話給凱文之前，我想重申一下第三季的財務預期。我們繼續預期第四季 EBITDA 將會成長，這將恢復我們的長期目標，這也符合我們對 2024 年的預期。

I also want to reiterate that as a general policy, we do not give guidance. However, we felt in our granular expectation as we close the year would be appropriate, given the advanced macro economic noise in the marketplace.

我還想重申，作為一般政策，我們不提供指導。然而，鑑於市場上先進的宏觀經濟噪音，我們認為在年底時的精細預期是適當的。

I will return the call to Kevin to discuss the Q3 2023 financial results in more detail.

我將回電給 Kevin ，更詳細地討論 2023 年第三季的財務表現。

Thank you, Brad.

謝謝你，布拉德。

Regarding our consolidated results, gross profit for the third quarter was essentially flat year-over-year with $17.3 million in Q3 '23 versus $17.4 million in Q3 '22. Health care gross profit in Q3 '23 was $7.5 million versus $9.0 million in Q3 '22. There were primarily two reasons for the quarterly decline in healthcare gross profit. First, we believe that Q3 '23 was our first quarter where we derived zero COVID related revenue. To give this perspective, if we remove the estimated impact of COVID, we saw our school revenue grow by approximately 25% in September 2023 compared to September 2022. We experienced similar results in October 2023. COVID also impacts our non school revenue comp.

就我們的綜合業績而言，第三季的毛利與去年同期基本持平，23 年第三季為 1,730 萬美元，而 22 年第三季為 1,740 萬美元。 23 年第三季的醫療保健毛利為 750 萬美元，而 22 年第三季為 900 萬美元。醫療保健毛利季度下降主要有兩個原因。首先，我們認為 23 年第三季是我們第一季的新冠肺炎相關收入為零。從這個角度來看，如果我們消除新冠疫情的估計影響，我們會發現2023 年9 月我們的學校收入比2022 年9 月增長了約25%。我們在2023 年10 月也經歷了類似的結果。新冠疫情也影響了我們的非學校收入比較。

Second, we deliberately called the services provided to a multi-location continuing care client in the five boroughs of New York City and Long Island. At the beginning of COVID, we acted as an emergency VMS to this client. As the gross margins from the non-direct revenue shrunk post COVID, we decided that the contribution margin on that revenue was insufficient for our return model.

其次，我們特意調用了為紐約市和長島五個行政區的多地點持續護理客戶提供的服務。在新冠疫情爆發之初，我們為該客戶充當了緊急 VMS。由於非直接收入的毛利率在新冠疫情之後萎縮，我們認為該收入的邊際貢獻不足以滿足我們的報酬模型。

On a year-over-year basis, our quarterly revenue decreased by $2.1 million from this client. If we compare Q3 '23 to Q2 '23, this client group decreased by $1 million sequentially. The decrease in this low margin business helped us grow sequential gross margin to 30% in Q3 '23 versus 27.6% in Q2 '23. We grew engineering gross profit in Q3 '23 by 5.2% over Q3 2022. The growth in gross profit was primarily driven by increased project activity in our energy services group and getting our engineering gross margin closer to target levels.

與去年同期相比，我們來自該客戶的季度收入減少了 210 萬美元。如果我們將 23 年第三季與 23 年第二季進行比較，則該客戶群連續減少了 100 萬美元。這項低利潤業務的減少幫助我們將 23 年第三季的毛利率環比提高至 30%，而 23 年第二季為 27.6%。我們在23 年第三季的工程毛利比2022 年第三季成長了5.2%。毛利的成長主要是由於我們能源服務集團專案活動的增加以及使我們的工程毛利率更接近目標水準所致。

Our gross margin in Q3 '23 was 25.0%, a significant sequential improvement from Q2 '23, gross margin of 22.9%. We continue to see outstanding results from our life sciences and IT group with 38.4% quarterly growth in gross profit year-over-year. We are seeing fantastic results as we drive more revenue through our high value, high margin managed service offerings.

我們 23 年第三季的毛利率為 25.0%，比 23 年第二季的毛利率 22.9% 顯著改善。我們的生命科學和 IT 部門繼續取得出色的業績，季度毛利年增 38.4%。隨著我們透過高價值、高利潤的託管服務產品推動更多收入，我們看到了驚人的成果。

We hope there is another year we can get to in Q4 '23. As we look to our fourth quarter of 2023 and our fiscal 2024, we expect all three segments to show good results with growth in adjusted and consolidated adjusted EBITDA. We estimate adjusted EBITDA in Q4 '23 between $7.6 million and $8.2 million. Also in Q4 '23, we estimate consolidated revenue between $70.0 million and $74.0 million with a similar gross margin profile to Q3 '23.

我們希望 23 年第 4 季我們還能再迎來一年。展望 2023 年第四季和 2024 財年，我們預計所有三個部門都將表現出良好的業績，調整後和綜合調整後 EBITDA 都會成長。我們估計 23 年第 4 季調整後的 EBITDA 在 760 萬美元至 820 萬美元之間。同樣在 23 年第 4 季度，我們預期綜合營收在 7,000 萬美元至 7,400 萬美元之間，毛利率狀況與 23 年第 3 季類似。

More granularly, we estimate life sciences and IT revenue between $11.0 million and $11.5 million. We estimate engineering revenue between $21.5 million and $23.0 million. We estimate health care revenue between $37.5 million and $39.5 million. Since we have discussed some variability and seasonality in our health care segment, we thought it would be helpful to discuss our weighted average school days in 2023.

更具體地說，我們估計生命科學和 IT 收入在 1,100 萬美元到 1,150 萬美元之間。我們預計工程收入在 2,150 萬美元至 2,300 萬美元之間。我們估計醫療保健收入在 3,750 萬美元至 3,950 萬美元之間。由於我們已經討論了醫療保健領域的一些變異性和季節性，因此我們認為討論 2023 年的加權平均上學日將會有所幫助。

Q1 '23 was approximately 55 days. Q2 '23 was approximately 45 days. Q3 '23 was approximately 27 days. Q4 '23 is estimated as about 51 days. So, that's about a 7% decline in school days when comparing Q4 '23 to Q1 '23. While we haven't penciled our first budgets yet, we expect a similar cadence to school days in 2024, except one or two days may shift from Q1 to Q2.

23 年第一季約 55 天。 23 年第 2 季約 45 天。 23 年第 3 季約 27 天。 23 年第 4 季預計約 51 天。因此，與 23 年第 4 季和 23 年第 1 季相比，上學時間大約減少了 7%。雖然我們尚未制定第一份預算，但我們預計 2024 年的上課節奏與上學日類似，只是一兩天可能會從第一季轉移到第二季。

We will give 2024 estimates on our next call as we have our budgets ready for the year. As for fiscal 2024 adjusted EBITDA, we will be highly disappointed, if we don't see at least low double digit growth. Our internal goals will undoubtedly reflect a much higher percentage. We are optimistic about growing all three segments in fiscal '24 and beyond.

我們將在下次電話會議中給予 2024 年的預估，因為我們已準備好今年的預算。至於 2024 財年調整後 EBITDA，如果我們看不到至少兩位數的低成長，我們將非常失望。我們的內在目標無疑會反映出更高的比例。我們對 24 財年及以後所有三個部門的成長持樂觀態度。

This concludes our prepared remarks. At this time, we will open the call for questions.

我們準備好的演講到此結束。此時，我們將開放提問。

(Operator Instructions) Alex Rygiel with B. Riley. Your line is open.

（操作說明）Alex Rygiel 和 B. Riley。您的線路已開通。

Thank you, gentlemen. Very nice quarter and appreciate the added guidance. They are super helpful. A couple of quick questions for you. First, as it relates to health care, what was your revenue from schools in the third quarter?

謝謝你們，先生們。非常好的季度，感謝額外的指導。他們非常樂於助人。有幾個簡單的問題想問你。首先，與醫療保健相關，第三季你們從學校獲得的收入是多少？

Schools was $17.4 million.

學校費用為 1740 萬美元。

Thank you. And then your balance sheets incredibly strong. And you talked a bit about expanding into new staffing markets. So, maybe, Brad, you could go a little deeper on that?

謝謝。然後你的資產負債表異常強勁。您談到了拓展新的人力資源市場。那麼，也許，布拉德，你可以更深入地探討這一點？

Yes. Look, as I alluded to in the prepared remarks and been pretty consistent with our dialogue last couple of years. We have these businesses at a point where we have a lot of confidence in a number of places in the portfolio. So, we are in a position to be opportunistic with respect to deployment of capital and our expansion into new adjacencies.

是的。看，正如我在準備好的發言中提到的那樣，並且與我們過去幾年的對話非常一致。我們對這些業務的投資組合中的許多地方都充滿信心。因此，我們能夠在資本部署和向新周邊地區擴張方面採取機會主義態度。

We are not looking to go greenfield into a new areas per se, simply because, there is plenty of opportunity to build on the core of what we do. So, naturally in first, inclination is to do it organically by bolting on talent. And to the extent that there is opportunity inorganically with respect to M&A. We are going to react opportunistically and would anticipate it being more of a bolt-on than any type of a major transformational platform type acquisition. So, I hope that answers your question sufficiently.

我們本身並不打算進入新領域，只是因為有很多機會可以在我們所做的核心業務的基礎上繼續發展。因此，自然地，首先，我們傾向於透過吸引人才來有機地做到這一點。在某種程度上，併購方面存在著無機的機會。我們將採取機會主義的反應，並預期它比任何類型的重大轉型平台類型收購都更像是一種補充。所以，我希望這足以回答你的問題。

Definitely does. And then as it relates to the engineering segment, can you talk a bit about the backlog there in the outlook for 2024?

絕對是的。然後，由於涉及工程領域，您能否談談 2024 年展望中的積壓情況？

Yes, we feel pretty good about what's going on engineering. We have increasing momentum with respect to the metric that we track. It's almost like a hybrid, a pipeline and backlog metric, given that we feel is appropriate given the mix of our business, it continues to grow. So, we are anticipating good things. But engineering, inevitably, given the nature of the project work, it could certainly deviate, but we do not expect anything substantial. It's a question in our minds as to whether or not it's going to be a pretty good year to very nice increase year-over-year.

是的，我們對工程的進展感覺非常好。我們追蹤的指標的勢頭不斷增強。它幾乎就像一個混合體，一個管道和積壓指標，考慮到我們認為考慮到我們的業務組合是合適的，它會繼續成長。所以，我們期待著美好的事情。但工程不可避免地考慮到專案工作的性質，它肯定可能會出現偏差，但我們不期望有任何實質的東西。我們心中的一個問題是，今年是否會是一個非常好的一年，是否會實現逐年良好的成長。

And then lastly, as we think about the first quarter of 2023, you mentioned that there were 55 school days and then you mentioned that in the third quarter there were 27 and you had no sort of COVID related revenue. I guess the question here is, as we think about the fourth quarter being 51 days, and that's down 7% from the first quarter. In the first quarter, was there any COVID related kind of legacy revenue in that first quarter?

最後，當我們考慮 2023 年第一季時，您提到有 55 個教學日，然後又提到第三季有 27 個教學日，而且您沒有任何與新冠病毒相關的收入。我想這裡的問題是，我們認為第四季是 51 天，比第一季下降了 7%。第一季是否有任何與新冠疫情相關的遺留收入？

Yes, certainly. I think we gave pretty clear pretty good guidance for Q4, right? So, we do not expect any COVID related revenue in Q4. And so far, what we have seen at least in October is, if we look at our schools, okay, which is our core business in health care. Obviously, we do a lot of work outside of schools, but at the end of the day, we are a healthcare school business, that's our core business in health care, right? That grew 25% in September and it grew 25% in October. And we think, we really think we can build from there.

是的，當然了。我認為我們為第四季度提供了非常明確、非常好的指導，對吧？因此，我們預計第四季不會有任何與新冠疫情相關的收入。到目前為止，我們至少在十月看到的是，如果我們看看我們的學校，好吧，這是我們在醫療保健領域的核心業務。顯然，我們在學校之外做了很多工作，但歸根結底，我們是一家醫療保健學校企業，這是我們在醫療保健領域的核心業務，對吧？ 9 月成長了 25%，10 月成長了 25%。我們認為，我們真的認為我們可以從那裡開始建造。

Great. Thank you very much.

偉大的。非常感謝。

Ben Andrew, Angie's Capital Management.

本安德魯，安吉資本管理公司。

Good morning, guys. A couple of balance sheet type questions, if I may. Understanding the transit account, I always thought it was subcontractor related, is that have a specific industry or segment flare? Is that your engineering segment or primarily what does that tied to?

早上好傢伙。如果可以的話，我想問幾個資產負債表類型的問題。了解過境帳戶，我一直認為它與分包商相關，是否有特定的行業或細分？這是您的工程部門還是主要與什麼相關？

Yes, you got it right. It is tied to engineering and mostly to EPC contracts. So, we have several large EPC contracts, where we do the E & the P, but we don't do the C. We don't take inventory of the equipment, the equipment, we purchased the equipment, but it goes straight from the OEM to the client. So, we never take inventory of that equipment. And so a lot of that, as you know, is advanced payments for equipment and construction.

是的，你說得對。它與工程緊密相關，並且主要與 EPC 合約相關。所以，我們有幾個大型EPC合同，我們做E和P，但我們不做C。我們不盤點設備，設備，我們購買設備，但它直接來自OEM 給客戶。因此，我們從不盤點該設備的庫存。如您所知，其中很大一部分是設備和建築的預付款。

Okay. So, what this ballpark? Is the revenue stream going to those subcontractors?

好的。那麼，這個球場是什麼呢？收入來源是否流向那些分包商？

Well, in terms of the, it's pretty significant, right? So, we have, but it's all pass-through.

嗯，就這一點而言，它非常重要，對吧？所以，我們有，但這都是傳遞的。

So, that doesn't show up in your income statement, but then their liabilities or their equipment will show up on your balance sheet?

那麼，這不會出現在您的損益表中，但他們的負債或設備會出現在您的資產負債表中？

No, not the equipment. The equipment never hits our balance sheet, Ben. Essentially because, we never take inventory of that. It's never our equipment at all stages, it's owned by our client. So, we are basically moving equipment and paying for the equipment, but we don't own. So, the equipment itself never hits our balance sheet. So, we get a payment in from the client and then we would get like milestone payments essentially, and we certainly manage those contracts so that we are paid upfront.

不，不是設備。本，這些設備永遠不會影響我們的資產負債表。本質上是因為，我們從不盤點這一點。在所有階段它都不是我們的設備，它屬於我們的客戶。所以，我們基本上是在行動裝置並支付設備費用，但我們並不擁有設備。因此，設備本身永遠不會影響我們的資產負債表。因此，我們從客戶那裡收到一筆付款，然後我們基本上會收到里程碑付款，並且我們當然會管理這些合同，以便我們預先付款。

So, we are not putting up huge sums of money for equipment and construction. So, the money comes in, we order new equipment, we do the work and then eventually we pay for it. And then more money comes in because, these are more typically multiyear contracts, they go for from anywhere from two to five years.

因此，我們不會投入大量資金用於設備和建設。所以，錢進來了，我們訂購新設備，我們做工作，然後最終我們付款。然後更多的錢就會進來，因為這些通常是多年期合約，期限從兩到五年不等。

Okay. So, liability then would already be our revenue earned by that subcontractor?

好的。那麼，責任就已經是我們透過該分包商賺取的收入了呢？

Not necessarily, some of it may be earned, but some of it may not be.

不一定，有的可能賺到，有的可能賺不到。

Okay. So, you can book out further than 12 months?

好的。那麼，您可以預訂超過 12 個月嗎？

Yes. Obviously, we are not booking any revenue into we actually earn it, right? On the based on the progress of the contract and based on the amount of engineering that's been done, right? So, we do make a small percentage on the equipment and the construction as well. And that also hits our income statement as revenue.

是的。顯然，我們並沒有將任何收入計入我們實際賺取的收入，對嗎？基於合約的進度和已完成的工程量，對嗎？因此，我們在設備和建築方面也確實賺了一小部分。這也影響了我們的損益表的收入。

Regarding share issuance, it looks like there was a fairly large share issuance in the quarter, maybe 10% of the market cap. And it was clearly larger than any vesting schedule of what was already out there in your Q's, what went on in the corner?

關於股票發行，看起來本季的股票發行量相當大，可能佔市值的10%。它顯然比你的問題中已經存在的任何兌現時間表都要大，角落裡發生了什麼？

Yes, I don't know the exact share numbers in front of me Ben, but I believe that we had about 100,000 shares issued to probably 20 employees under long term time-based restricted share awards.

是的，我不知道我面前的確切股票數量，Ben，但我相信，根據長期的、基於時間的限制性股票獎勵，我們向大約 20 名員工發行了大約 100,000 股股票。

In one day?

一天內？

Exactly.

確切地。

Maybe I read it wrong then because, I thought it was 800,000 shares.

也許我當時看錯了，因為我以為是80萬股。

No, definitely not.

不，絕對不是。

Because you finished last quarter a little under $8 million shares. And I thought I saw $8.8 million shares out right now.

因為上個季度你完成了略低於 800 萬美元的股票。我想我現在看到了價值 880 萬美元的股票。

No, it's $7.8 million, Ben.

不，是 780 萬美元，本。

Oh, okay. I am sorry. I misread it.

哦好的。對不起。我讀錯了。

Okay. No problem. I have the [Q] in front of me. As of yesterday, we had 7,832,093 outstanding.

好的。沒問題。我面前有[Q]。截至昨天，我們的未償還金額為 7,832,093。

Okay. Thank you, guys, for all your hard work.

好的。謝謝你們，夥伴們，你們的辛勤工作。

Appreciate it. Thank you, Ben.

欣賞它。謝謝你，本。

Bill Sutherland, benchmark.

比爾·薩瑟蘭，基準。

Hey, following up on Ben's question on shares. Is that still at the top of the capital deployment list for you guys going forward?

嘿，跟進本關於股票的問題。對你們來說，這仍然是未來資本部署清單的首要任務嗎？

Yes. Look, Bill, I mean, we have always pretty much anticipate having some from buyback again, right? Naturally, as we have taken shares and volume decreases and the baggage of buyback is inevitably going to vain. However, as you see, we continue to be active. We continue to be quite optimistic about our ability to deliver value at the company. And so it's safe to assume we are very much committed to deploying capital through that medium.

是的。聽著，比爾，我的意思是，我們總是預計會再次回購一些，對嗎？當然，隨著我們持有股票和交易量的減少，回購的包袱不可避免地會成為徒勞無功。然而，正如您所看到的，我們繼續保持活躍。我們仍然對我們為公司創造價值的能力感到非常樂觀。因此，可以肯定地假設我們非常致力於透過這種媒介部署資本。

Okay. It's certainly been very effective. Zooming out a little bit on engineering and thinking about aerospace, getting back on speed and the just the opportunities, particularly as you broaded it out and $0.02, but the other areas as well, I mean, how should we think about the kinds of intermediate growth for that group overall engineering?

好的。這當然非常有效。稍微縮小一點工程和思考航空航天，重新回到速度和機會，特別是當你擴大它和 0.02 美元時，但其他領域也是如此，我的意思是，我們應該如何考慮中間類型該集團整體工程的增長？

We are quite optimistic about the future of engineering and almost look at all three segments, all three units. With respect to energy services, we continue to gain traction. We have a number of very large long-term partners as we continue to build competence project after project. In some instances, it's a matter of how much we can take on. So, really going back to the core of that strategy, leading with technical capabilities that we think are very much differentiated in the marketplace.

我們對工程的未來非常樂觀，幾乎關注所有三個領域、所有三個部門。在能源服務方面，我們繼續獲得牽引力。隨著我們不斷建造一個又一個的項目，我們擁有許多非常大的長期合作夥伴。在某些情況下，問題在於我們能夠承擔多少。因此，真正回到該策略的核心，以我們認為在市場上非常差異化的技術能力為主導。

With respect to our kind of our track record, the talent that we have assembled. And from there naturally, as you become a preferred partner, the attachment of incremental work is, it can be very substantial. So, what you are really seeing there in the case of our energy services group is really years of comp rather a bit of a tipping point with respect to compounding of years of goodwill and kind of earning that trust. So, we actually have very high expectations going forward for that business.

就我們的業績記錄和我們所聚集的人才而言。從那時起，當您成為首選合作夥伴時，增量工作的依戀自然會變得非常可觀。因此，就我們的能源服務集團而言，您真正看到的是多年的競爭，而不是多年商譽的複合和贏得信任的轉折點。因此，我們實際上對該業務的未來抱有很高的期望。

With respect to aerospace, again, a very strong growth orientation to it, had a bit of a setback very late last year, last two weeks or so of the year. Apps very happy with how the team dealt with it and rebounded on adding incremental clients, several of which are very significant and present a meaningful opportunity to expand within those accounts. So, again, in terms of the upside in that business, we are quite optimistic in 2024 and beyond.

就航空航太而言，它的成長方向非常強勁，但去年年底（今年最後兩週左右）遇到了一些挫折。應用程式對團隊的處理方式非常滿意，並在增加增量客戶後反彈，其中一些客戶非常重要，並為在這些客戶中擴展提供了有意義的機會。因此，就該業務的上行空間而言，我們對 2024 年及以後的前景相當樂觀。

And then finally, with respect to process, again, very, very strong technical capabilities and team, we have currently invested in that business, making sure they have all the tools that they need to continue to build on their reputation and ultimately on the financial performance of that business.

最後，就流程而言，非常非常強大的技術能力和團隊，我們目前已經對該業務進行了投資，確保他們擁有繼續建立聲譽並最終建立財務所需的所有工具。該業務的表現。

Inevitably, there will all be an element of lumpiness there. Yes, that will be difficult to forecast. However, it is a very IT intensive part of our portfolio, and we have paid for that intellectual property. And so it's economically very attractive model.

不可避免地，那裡都會有一個塊狀的元素。是的，這很難預測。然而，它是我們產品組合中資訊科技非常密集的部分，我們已經為該智慧財產權支付了費用。所以它在經濟上是非常有吸引力的模式。

So, with respect to saying this quarter is going to be an excellent quarter versus, you know, call it, Q3 or Q4, that one is probably the most challenging. However, the returns are very robust, the team is as strong as it's been, the representation is very much intact and we believe we continue to build on that. And so we are optimistic for its performance as well. But very specifically, we think that group has troughed, having finished up a couple of large projects and activity is starting to go in the right direction.

因此，就說本季將是一個出色的季度（與第三季或第四季相比）而言，這個季度可能是最具挑戰性的。然而，回報非常強勁，團隊一如既往地強大，代表性非常完好，我們相信我們將繼續在此基礎上繼續發展。因此我們對其表現也持樂觀態度。但具體而言，我們認為團隊已經度過了低谷，完成了幾個大型項目，並且活動開始朝著正確的方向發展。

Is that the thinking, as you look at your fourth quarter range, likely range for revenue and looks like your quarter-on-quarter flat could be off a little bit. So, is that just the completion phase and your new work starts to ramp in the first quarter next year?

當您查看第四季度的收入範圍和可能的收入範圍時，您的想法是這樣的嗎？看起來您的季度環比持平可能會略有下降。那麼，這只是完成階段嗎？您的新工作將在明年第一季開始推進？

Yes, no question. There is a little bit of that. But Kevin, do you want to go into very specifically, the breakdown of an engineering and how we are thinking about that sequential cadence?

是的，毫無疑問。有一點這樣的。但是凱文，你想非常具體地討論工程的分解以及我們如何考慮順序節奏嗎？

Sure. I mean, it is difficult to project as Brad said, but what we believe will see in engineering next year. It's a slow sequential uptick as we move throughout the year, right? So, we would expect Q1 revenue to be higher than Q4, Q2 to be higher than Q1 and so forth. I am not sitting here projecting any big giant jumps in any particular quarter. But what I would like to see is, single digit sequential growth each quarter, right?

當然。我的意思是，正如布拉德所說，很難進行預測，但我們相信明年將在工程中看到這一點。隨著我們全年的變化，這是一個緩慢的連續上升，對吧？因此，我們預計第一季的營收將高於第四季度，第二季度的營收將高於第一季度，依此類推。我不會坐在這裡預測任何特定季度的任何巨大跳躍。但我希望看到的是每個季度個位數的環比增長，對吧？

We have obviously there being some upside depending on what happens with all the different hires we have hired. As you have been covering us a long time, Bill. So, you have seen how engineering can really jump in a quarter and stay up for a while depending on what project we have. But in terms of expectations, and what we expect to happen. I would expect to see a sequential uptick each quarter and then obviously hope to see if we can really boost that with a couple of big projects.

顯然，我們有一些好處，這取決於我們僱用的所有不同員工的情況。正如你長期以來一直報道我們一樣，比爾。所以，您已經看到了工程技術如何真正在一個季度內實現跳躍並在一段時間內保持穩定，具體取決於我們的專案。但就期望以及我們期望發生的情況而言。我預計每個季度都會出現連續上升，然後顯然希望看看我們是否真的可以透過幾個大項目來推動這一成長。

Got it. Okay, makes total sense--

知道了。好吧，完全有道理——

And we need to continue to work on our margins because, it's not just about adding revenue, right? It's about adding quality revenue and gross profit that gross profit dollars that are driving our return model.

我們需要繼續努力提高利潤，因為這不僅僅是增加收入，對嗎？這是為了增加優質收入和毛利，從而推動我們的回報模型。

About health care, just for second. I was thinking about the comments, Brad, you made about behavioral health really taking off. Is it dumb? I mean, where are you in terms of it's important to you in other words. Is it becoming a meaningful percentage of revenue yet or you are still just starting that process?

關於醫療保健，只是第二個。我在想布拉德，你關於行為健康的評論確實起飛了。是不是傻了？我的意思是，換句話說，就這對你來說很重要而言，你在哪裡。它是否已經成為收入的一個有意義的百分比，或者您仍然剛開始這個過程？

I think it's the majority of the business at this point. And frankly, we anticipate seeing it accelerate. As you know, we have been pretty excited about the story and positioned ourselves for accordingly on the last couple of years. I wouldn't call it on the com. There is certainly a bit of an increasing drumbeat, but I think call to last, call it 9 months, 12 months. I think you are seeing a meaningful increase and we anticipate that activity continuing to go in the right direction.

我認為這是目前大部分業務。坦白說，我們預計它會加速。如您所知，我們對這個故事感到非常興奮，並在過去幾年中相應地定位了自己。我不會在com上打電話。當然，鼓聲越來越大，但我認為應該堅持到最後，稱之為 9 個月、12 個月。我認為您看到了有意義的成長，我們預計該活動將繼續朝著正確的方向發展。

I think naturally, you think about some of the drivers of this from macro perspective oftentimes investment behind this type of these type of social infrastructure initiatives are going to come on a lag, and we think that's exactly what we are seeing. So, very exciting part of the portfolio, no question about it. We think that there is plenty of upside there. So, we are certainly willing to keep everybody posted as that continues to crystallize.

我認為自然地，你從宏觀角度思考這個問題的一些驅動因素，通常這種類型的社會基礎設施計劃背後的投資會出現滯後，我們認為這正是我們所看到的。所以，毫無疑問，這是投資組合中非常令人興奮的部分。我們認為那裡有很大的上升空間。因此，隨著這種情況的不斷具體化，我們當然願意向所有人通報情況。

And I would just add to that three years ago, our behavioral health revenue three, four years ago was primarily coming from two clients. So, today, we have well over 30 that we are providing behavioral health services to, as when I look at this behavioral health market for RCM, we are still in the first inning, second at best, right? So, we just think there is amazing potential there.

我想補充一點，三年前，三、四年前我們的行為健康收入主要來自兩位客戶。所以，今天，我們為超過 30 家提供行為健康服務，當我審視 RCM 的行為健康市場時，我們仍處於第一局，最多是第二局，對嗎？所以，我們只是認為那裡有驚人的潛力。

We think we can, we just think there is so much growth out there. Now obviously, there is a lot of competition, lot of other companies that are going after this business, but there is just there is a lot of business out there for us to grow. And we think our team is stellar and we are really excited to grab it.

我們認為我們可以，我們只是認為那裡有如此多的增長。顯然，現在有很多競爭，很多其他公司都在追求這個業務，但有很多業務可供我們發展。我們認為我們的團隊非常出色，我們很高興能抓住它。

There is only so much you can grab in one school year because, once the contracts are set for that school year that, you are not going to typically add like a $5 million client in the middle of school year, but we have a lot of potential to build with the 30 schools that approximately 30 schools we are providing behavioral health.

在一個學年中你能獲得的東西只有這麼多，因為一旦為該學年確定了合同，你通常不會在學年中期增加 500 萬美元的客戶，但我們有很多與我們正在為大約30 所學校提供行為健康服務的30 所學校建立的潛力。

And then hopefully, when we get the next school year, we will have, we will add another 20 another 30, we will say, it's a really exciting business to be in front of them.

然後希望，當我們進入下一個學年時，我們將再增加 20 個，再增加 30 個，我們會說，在他們面前這是一件非常令人興奮的事情。

Roughly how many schools are you in now total?

您現在大約在多少所學校？

Probably about 70, we are active roughly.

大概70歲左右，我們活躍的差不多。

Okay. Thanks for all the color, guys. Good luck.

好的。謝謝你們所有的顏色。祝你好運。

(Operator Instructions) Frank Kelly.

（操作員說明）弗蘭克凱利。

Good morning, gentleman. Great, great quarter. Great quarter. In particular life sciences heading to 40% phenomenal, absolutely outstanding. And love to see top line growth there and that unit take over. Switching over to the balance sheet on actual trade accounts receivable, what can you shed some light on there? It seems to see that we are losing significant traction. Since our last call and since year end December, 31,'22.

早上好，先生。太棒了，很棒的季度。很棒的季度。尤其是生命科學領域，這一比例達到了 40%，非常驚人，絕對出色。我很高興看到該部門的營收成長並接管該部門。切換到實際貿易應收帳款的資產負債表，您可以從中了解什麼？看來我們正在失去巨大的吸引力。自我們上次通話以來以及自 22 年 12 月 31 日年底以來。

Sure, I can speak about that. Frank, We talked a little bit on the last call. So, the receivables relative to revenue right now are just too high, the trade receivables period, and we are doing a lot of different things to get them down and get our DSOs to a better level. But as I think, because you [fought] these barrels before clear, you know that when you get into Q3 because, our revenue is somewhat back loaded into September, right? because of the schools being closed in June and July.

當然，我可以談論這一點。弗蘭克，我們在上次通話中聊了一點。因此，目前的應收帳款相對於收入來說太高了，在貿易應收帳款期間，我們正在做很多不同的事情來降低應收帳款並使我們的 DSO 達到更好的水平。但正如我所想，因為你在明確之前[戰鬥]了這些桶，你知道當你進入第三季度時，因為我們的收入在某種程度上回載到了 9 月份，對嗎？因為學校在六月和七月關閉。

We are always going to have sort of a wacky looking receivable slash DSO in Q3, because of the cadence of how the revenue hits the income statement, obviously you are not going to have any receivables collective in October relative to September, right? Or at least very little. So, that's one factor in Q3. If you look, if you compare Q3 to Q4, to be really frank with you, we had a little bit of a different revenue composition where we had some clients, but just a lot faster than we do today, particularly when you start talking about some of the COVID-related revenue, that money was just coming in very, very fast.

在第三季度，我們總是會出現看起來古怪的應收帳款大幅削減DSO，因為收入影響損益表的節奏，顯然相對於9 月，十月份不會有任何應收帳款集體，對吧？或至少很少。所以，這是第三季的一個因素。如果你看一下，如果你比較第三季度和第四季度，坦白說，我們的收入組成有點不同，我們有一些客戶，但比我們今天的速度快得多，特別是當你開始談論一些與新冠病毒相關的收入，這些錢來得非常非常快。

So, the DSOs in Q4 are historically low for us. Certainly a goal for us to get back to those levels where we were in Q4, and we are working like hell to get there, but those numbers are historically low. And then, if you look at the receivables today and the DSOs today, have a couple of clients that are really good clients, high-margin clients, particularly in the life sciences space, that is just pay a little like that industry is not uncommon to get contracts where these big companies say payment terms are 90 days take it or leave it.

因此，第四季度的 DSO 對我們來說處於歷史低點。當然，我們的目標是回到第四季度的水平，我們正在拼命努力實現這一目標，但這些數字處於歷史低點。然後，如果你看看今天的應收帳款和DSO，你會發現有幾個客戶是真正的好客戶，高利潤客戶，特別是在生命科學領域，這只是支付一點，就像這個行業並不罕見。為了獲得這些大公司所說的付款期限為 90 天的合同，要么接受，要么放棄。

If you want the business, you have got to wait 90 days, right? And we have a few clients like that there are fantastic clients, very profitable, even with the high DSOs, they fit our return model very, very well. So, that's one aspect that's contributing to the higher DSOs. Then when you flip over to the EPC clients, a lot of EPC clients and some of the utilities are also slow payers, but the overall cash flow aspects of those engagements are excellent.

如果你想要生意，你得等90天，對嗎？我們有一些這樣的客戶，他們是出色的客戶，利潤很高，即使 DSO 很高，他們也非常非常適合我們的回報模型。因此，這是有助於提高 DSO 的一方面。然後，當你轉向 EPC 客戶時，許多 EPC 客戶和一些公用事業公司也是付款緩慢的人，但這些業務的整體現金流方面非常出色。

It's just that when you look at the trade DSOs, you just see they all operate, but the overall cash economics for those clients are outstanding. So, you have got a couple of factors going on, but I can assure you that we are working very hard to get DSOs at a much level, much lower level where they were in Q2 and Q3.

只是當您查看貿易 DSO 時，您只會看到它們都在運行，但這些客戶的整體現金經濟效益非常出色。因此，有幾個因素正在發生，但我可以向您保證，我們正在非常努力地使 DSO 處於比第二季度和第三季度低得多的水平。

Kevin, do we have, you think, you are talking about DSO number. So, you know where they are, where were they in Q2 and Q3?

凱文，您認為您正在談論 DSO 編號嗎？那麼，您知道他們在第二季和第三季的位置嗎？

Well, you know, obviously people calculate DSO's differently, right? But you know how I calculate them. They were 84 in Q2. They were 90 in Q3. They were 79 in Q1 and they were at an all-time low in Q4 of 66. So, we need to get, some way, some how we need to get them a lot(inaudible)

嗯，你知道，顯然人們計算 DSO 的方式不同，對吧？但你知道我是如何計算它們的。第二季他們的成績為 84 分。他們在第三季的成績是 90 分。第一季的數量為 79，第四季的數量為 66，創下歷史新低。因此，我們需要以某種方式獲得大量數量（聽不清楚）

Right. I think if we look on the flip side of that on expending capital against debt, there could be a pickup as much as over a million, 1.2 EBITDA. If we, if we collect those and turn them down into against the lines, right?

正確的。我認為，如果我們從另一方面來看，用資本來償還債務，那麼 EBITDA 的增幅可能會超過 100 萬，即 1.2。如果我們收集這些並將它們變成違反規定的東西，對吧？

Well, it's not going to impact EBITDA. It's really just a matter of impacting our interest costs right? (multiple speakers)

嗯，這不會影響 EBITDA。這其實只是影響我們的利息成本的問題，對嗎？ （多個發言者）

Include an EBITDA, right? Am I stand corrected or no?

包括 EBITDA，對嗎？我的立場是否正確？

Yes, no earnings before interest. So, no. It doesn't impact interest, but your point is a good one. We are very, very focused on cash flow and the most important measure to look at this company is return on equity, like that's the most important thing and we pride ourselves in having a very high return on equity and this is an important component to it.

是的，沒有利息前收益。所以不行。雖然不影響興趣，但你的觀點很好。我們非常非常關注現金流，衡量這家公司最重要的指標是股本回報率，這是最重要的事情，我們為擁有非常高的股本回報率而感到自豪，這是它的重要組成部分。

Great, keep it up. Thanks for the info.

太好了，繼續保持。謝謝（你的）資訊。

Thanks, Frank.

謝謝，弗蘭克。

Bill, your line is open.

比爾，你的線路已開通。

Yes, I was curious with Kevin, about the tax rate in the quarter and what to think about for the year?

是的，我對凱文很好奇，關於本季的稅率以及今年要考慮什麼？

Yes, we had a one-time discrete tax benefit in Q3 that helped us out. But it's just a Q3 thing, I think when you start looking at Q4, you are probably looking at consolidated taxes 28% to 29% roughly. And I think we are going to have a discrete item that's going to work the other way. It's going to bump it up a little bit in Q4. Long term, I think 28% is a pretty good rate for you to use in your model.

是的，我們在第三季獲得了一次性離散稅收優惠，這幫助我們擺脫了困境。但這只是第三季的事情，我認為當你開始關注第四季時，你可能會看到大約 28% 到 29% 的綜合稅。我認為我們將會有一個獨立的項目，以相反的方式運作。第四季它將略有上升。從長遠來看，我認為 28% 對於您在模型中使用來說是一個相當不錯的比率。

Okay. Thanks again, guys. Have a good one.

好的。再次感謝你們。祝你有個好的一天。

(Operator Instructions) Okay, it doesn't look like we have any more questions. So, I will turn it back over to you for any closing remarks.

（操作員說明）好的，看來我們沒有其他問題了。因此，我會將其轉回給您，供您發表結束語。

Thank you for attending RCM's third-quarter conference call. We look forward to our next update in 2024.

感謝您參加 RCM 第三季電話會議。我們期待 2024 年的下一次更新。

This concludes your call. You may now disconnect.

您的通話到此結束。您現在可以斷開連線。