REV Group Inc (REVG) 2017 Q4 法說會逐字稿

Greetings, and welcome to REV Group Fourth Quarter 2017 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Sandy Bugbee. Thank you. You may begin.

您好，歡迎參加 REV 集團 2017 年第四季財報電話會議。 （操作員指示）我現在想將會議轉交給 Sandy Bugbee。謝謝。你可以開始了。

Thank you, Sherry. Good morning, everyone, and thanks you for joining us. Last night, we issued our fourth quarter 2017 results. A copy of the release is available on our website at investors.revgroup.com. Today's call is being webcast and is accompanied by a slide presentation, which includes a reconciliation of non-GAAP to GAAP financial measures that we will use during this call. It is also available on our website.

謝謝你，雪莉。大家早安，感謝您加入我們。昨晚，我們發布了 2017 年第四季業績。新聞稿的副本可在我們的網站 Investors.revgroup.com 上取得。今天的電話會議正在進行網路直播，並附有幻燈片演示，其中包括我們將在本次電話會議中使用的非 GAAP 與 GAAP 財務指標的調整表。它也可以在我們的網站上找到。

Please refer now to Slide 2 of that presentation. Our remarks and answers will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we have described in our Form 8-K filed with the SEC last night and other filings we make with the SEC. We disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly earnings conference call, if at all. All references on this call to a quarter or a year are to our fiscal quarter or fiscal year unless otherwise stated.

現在請參閱該簡報的幻燈片 2。我們的評論和回答將包括《私人證券訴訟改革法》含義內的前瞻性陳述。這些前瞻性陳述存在可能導致實際結果與此類前瞻性陳述明示或暗示的結果有重大差異的風險。這些風險包括我們在昨晚向 SEC 提交的 8-K 表格以及我們向 SEC 提交的其他文件中描述的事項。我們不承擔更新這些前瞻性陳述的義務，這些前瞻性陳述可能要到我們下一次季度財報電話會議才會更新（如果有的話）。除非另有說明，本次電話會議中所有提及的季度或年度均指我們的財務季度或財政年度。

Joining me on the call today are our President and CEO, Tim Sullivan; as well as our CFO, Dean Nolden. I will now turn the call over to Tim.

今天和我一起參加電話會議的是我們的總裁兼執行長 Tim Sullivan；以及我們的財務長 Dean Nolden。我現在將把電話轉給蒂姆。

Thanks, Sandy. I think we'll mix it up a little bit today, and Dean, why don't you go first and give us some of the financial highlights?

謝謝，桑迪。我想我們今天會稍微混合一下，Dean，為什麼不先給我們一些財務亮點呢？

Yes. Thanks, Tim. Good morning, and I will start on Slide 7. We are very pleased to report strong growth and improved profitability for the fiscal 2017 fourth quarter. Quarterly net sales of $684 million were up 26% over the last year, and for the full year, we grew sales by 18%. Strong organic growth in our Fire & Emergency and Recreation segments drove our sales performance as well as the introduction of innovative new products across all our businesses.

是的。謝謝，蒂姆。早安，我將從幻燈片 7 開始。季度淨銷售額為 6.84 億美元，比去年增長 26%，全年銷售額增長 18%。我們的消防與緊急和娛樂部門的強勁有機成長推動了我們的銷售業績以及我們所有業務中創新新產品的推出。

Acquisitions, a core element of our ongoing-growth strategy, also contributed to our growth for the quarter, and for the year. We are very happy with the initial performance of our acquisitions. All of them have driven sales and backlog increases in their respective segments. We continue to make capital investments in these businesses to increase their scale and enhance their profitability, as we move into fiscal 2018 and beyond.

收購是我們持續成長策略的核心要素，也為我們本季和全年的成長做出了貢獻。我們對收購的初步表現非常滿意。所有這些都推動了各自領域的銷售和積壓訂單的增加。進入 2018 財年及以後，我們將繼續對這些業務進行資本投資，以擴大其規模並提高其獲利能力。

Net income in the fourth quarter was $22.7 million or $0.35 per diluted share and $31.4 million, or $0.50 per diluted share for the year.

第四季淨利為 2,270 萬美元，即稀釋後每股收益 0.35 美元；全年淨利潤為 3,140 萬美元，即稀釋後每股收益 0.50 美元。

Adjusted net income grew by 59% for the quarter to $29.2 million or $0.44 per share. For the full year, adjusted net income grew by 43% to $75.9 million or $1.22 per share. These are significant year-over-year improvements, driven by growth in core earnings and reduction of interest expense.

該季度調整後淨利潤成長 59%，達到 2,920 萬美元，即每股 0.44 美元。全年調整後淨利成長 43%，達到 7,590 萬美元，即每股 1.22 美元。在核心收益成長和利息支出減少的推動下，這些都是顯著的年比改善。

Speaking of significant achievements, adjusted EBITDA for the fourth quarter increased 39% to $58.4 million, and full year adjusted EBITDA grew by 32% to $162.5 million.

說到重大成就，第四季調整後 EBITDA 成長 39%，達到 5,840 萬美元，全年調整後 EBITDA 成長 32%，達到 1.625 億美元。

Adjusted EBITDA grew from increased sales, the impact of our ongoing procurement and production cost optimization initiatives, pricing and the contribution from acquisitions.

調整後 EBITDA 的成長得益於銷售的成長、我們正在進行的採購和生產成本優化計劃的影響、定價以及收購的貢獻。

We are very proud of our growth in profits for the year, and resulting 80 basis-point improvement in adjusted EBITDA margin. We expect the pace of this operational leverage to continue and accelerate in fiscal 2018, as we benefit from the continued improvements made in our operations as well as from our increased scale.

我們對今年的利潤成長以及調整後 EBITDA 利潤率提高 80 個基點感到非常自豪。我們預計這種營運槓桿的步伐將在 2018 財年繼續並加速，因為我們受益於營運的持續改進以及規模的擴大。

Let me now turn to Page 8 to discuss the performance of our segments. Fire & Emergency segment sales grew 30% for the fourth quarter and 28% for the full year. The primary drivers of this increase were higher unit sales, contribution from our acquisition of Ferrara and a greater mix of higher-content, higher-value vehicles.

現在讓我翻到第 8 頁來討論我們各部門的表現。消防與緊急部門銷售額第四季成長 30%，全年成長 28%。這一成長的主要驅動因素是單位銷售的增加、我們收購費拉拉的貢獻以及更高含量、更高價值的車輛的更大組合。

F&E adjusted EBITDA for the quarter grew 34% and 29% for the full year, driven by this increase in sales and mix were also due to the actions we took to improve segment profitably, including productivity, pricing and operational initiatives, particularly, at our KME and Ferrara businesses.

F&E 調整後的本季EBITDA 成長了34%，全年成長了29%，這得益於銷售額和產品組合的成長，這也是由於我們為提高部門利潤而採取的行動，包括生產力、定價和運營舉措，特別是在我們的部門KME 和費拉拉業務。

Going forward, we see continued strength in our F&E businesses from continued high demand in both fire and ambulance end markets, which are still recovering from prior recessionary levels.

展望未來，我們看到，由於消防和救護車終端市場的持續高需求，我們的 F&E 業務將持續強勁，而這些市場仍在從先前的衰退水平中復甦。

As shown on Slide 9, in our Commercial segment, quarterly sales were down 2% and 9% for the full year, primarily from lower sales in our shuttle bus-product category, where we continue to be more selective in pursuing higher-margin business. The shallower decline in the fourth quarter was driven by sales increases in other Commercial product categories, which included transit buses, terminal trucks and sweepers.

如幻燈片9 所示，在我們的商業部門，季度銷售額下降了2%，全年銷售額下降了9%，這主要是由於我們的班車產品類別的銷售額下降，我們在該領域繼續更有選擇性地追求更高利潤的業務。第四季降幅收窄的原因是其他商業產品類別的銷售成長，其中包括公車、碼頭卡車和清掃車。

Looking forward, we exited the year with a very healthy Commercial backlog increase of 44% sequentially and 62% versus the prior year.

展望未來，我們以非常健康的商業積壓結束了這一年，比上一年增加了 44%，比前一年增加了 62%。

Commercial adjusted EBITDA margin was 8.4%, down 60 basis points for the quarter. But for the full year, Commercial adjusted EBITDA margin was 8.2%, which was an increase from 7.9% in the prior year.

商業調整後 EBITDA 利潤率為 8.4%，本季下降 60 個基點。但全年商業調整後 EBITDA 利潤率為 8.2%，高於前一年的 7.9%。

Going forward, we believe the end markets in the Commercial segment are also strengthening, as transportation services continue to be outsourced, and legislative-replacement cycles continue, and we believe, our Commercial margins will continue to increase through added scale, a return to sales growth in 2018 and the benefit of actions that we have taken this year.

展望未來，我們相信商業領域的終端市場也在增強，因為運輸服務繼續外包，立法更換週期仍在繼續，我們相信，我們的商業利潤率將透過擴大規模、銷售回報繼續增加2018 年的成長以及我們今年採取的行動的效益。

Turning to Slide 10. Quarterly sales in the Recreation segment grew 57% and 38% for the full year, partially driven by sales from our acquisitions of Renegade and Midwest. Segment sales also benefited from increased unit sales and higher-average net-selling prices. We exited the year with segment backlog of 80% on a year-over-year basis and 25%, sequentially, versus the third quarter.

轉向投影片 10。部門銷售也受惠於單位銷售的增加和平均淨售價的提高。今年結束時，我們的部門積壓訂單與去年同期相比為 80%，與第三季相比，較上季為 25%。

Recreation adjusted EBITDA increased 250% for the fourth quarter and 229% for the full year, primarily related to these higher volumes, but also because of our ongoing procurement initiatives, focus on quality, operational improvements and the impact of our acquisitions.

娛樂調整後的 EBITDA 第四季成長了 250%，全年成長了 229%，這主要與銷售量的增加有關，但也因為我們正在進行的採購計畫、對品質、營運改善和收購影響的關注。

Our full year Recreation adjusted EBITDA margin grew 328 -- 320 basis points to 5.5% of net sales, up from 2.3% last year.

我們全年娛樂調整後 EBITDA 利潤率成長了 328 - 320 個基點，佔淨銷售額的 5.5%，高於去年的 2.3%。

Looking ahead, the end markets for Recreation also remain very strong, as customer demand across many demographic groups continues to embrace the RV lifestyle. Overall, consumer confidence remains strong, which also bodes well for our continued growth in the segment.

展望未來，休閒的終端市場也仍然非常強勁，因為許多人口群體的客戶需求繼續接受房車生活方式。總體而言，消費者信心仍然強勁，這也預示著我們在該領域的持續成長。

Turning to our balance sheet. Total debt at October 31 was $230 million. As a result, we had $186 million available under our ABL revolving credit facility. Capital expenditures are $4 million for the quarter, and $54 million for the full year, as we made investments in our production plants' equipment, service locations and our IT systems to drive scale and growth. Looking forward, we expect capital expenditures for fiscal 2018 to be consistent with fiscal 2017 at the $50 million level.

轉向我們的資產負債表。截至 10 月 31 日，債務總額為 2.3 億美元。因此，我們的 ABL 循環信貸額度下有 1.86 億美元可用。本季的資本支出為 400 萬美元，全年的資本支出為 5,400 萬美元，因為我們對生產工廠的設備、服務地點和 IT 系統進行了投資，以推動規模和成長。展望未來，我們預計 2018 財年的資本支出將與 2017 財年持平，為 5,000 萬美元。

Finally, we are forecasting that we will realize improvements in our management of working capital and realize positive free cash flow and net debt reduction in fiscal 2018, before the impact of any future acquisitions. In addition, we have more than adequate liquidity, low leverage and access to external markets that will be the fuel to our growth initiatives in fiscal 2018 and beyond.

最後，我們預測，在任何未來收購影響之前，我們將在 2018 財年實現營運資本管理的改善，並實現正的自由現金流和淨債務減少。此外，我們擁有充足的流動性、低槓桿率和進入外部市場的機會，這將成為我們 2018 財年及以後成長計畫的動力。

I'll now turn the call back to Tim.

我現在將電話轉回給蒂姆。

Thanks, Dean. Obviously, very exciting times here at REV. I'm usually fairly measured in my self-evaluation of our corporate performance, but when I reflect back on our fourth quarter and full year performance in 2017, quite frankly, I'm amazed at what our team accomplished.

謝謝，迪恩。顯然，REV 的時光非常令人興奮。我通常會對公司業績進行自我評估，但當我回顧 2017 年第四季和全年業績時，坦白說，我對我們團隊的成就感到驚訝。

Let me give you a few highlights from the quarter and the year. We began the year executing a very successful IPO in January, pricing at $22, which was $1 above our initially projected range. In October, we completed a highly successful follow-on equity offering of 11.5 million shares. Both of those offerings, the IPO and the secondary follow-on were significantly oversubscribed. We achieved 32% increase in adjusted EBITDA on sales of 18% year-over-year. This was the second year in a row that we achieved such results. I'm hard-pressed to find any industrial company, or any company for that matter, that achieve -- that's achieved this level of success in 2 years back-to-back. We introduced 17 new products. We acquired 4 companies. And we became the first-ever OEM to be qualified by Ford Motor Company to sell genuine Ford parts.

讓我向您介紹本季和本年度的一些亮點。今年一月份，我們進行了一次非常成功的 IPO，定價為 22 美元，比我們最初預計的價格高出 1 美元。 10 月份，我們非常成功地完成了 1,150 萬股的後續股權發行。這兩次發行、首次公開發行和二次後續發行都獲得了大幅超額認購。我們的調整後 EBITDA 成長了 32%，銷售額年增 18%。這是我們連續第二年取得這樣的成果。我很難找到任何工業公司，或任何與此相關的公司，能夠在兩年內連續取得如此程度的成功。我們推出了17種新產品。我們收購了 4 家公司。我們成為第一家獲得福特汽車公司資格銷售福特正品零件的原始設備製造商。

So you look back on the year, and we're just really -- I'm very proud of the team. The team did an outstanding job. But we actually completed our high-5s, 7 weeks ago, and we're already well into fiscal 2008 (sic) [2018]. Let me set the stage for what we see for 2008 (sic) 2018 , going ahead. First and foremost, we are reiterating, today, guidance that we presented in October during our follow-on, which is net sales of $2.4 billion to $2.7 billion and adjusted EBITDA of $200 million to $220 million for full year fiscal 2018. This is now 3 years in a row of revenue growth exceeding 15% and adjusted EBITDA growth exceeding 30%. Again, I know of no other industrial company even close to this type of performance, and this is 3 years in a row. I should also clarify that in my entire career, it's always been about making money, which, in turn, directly impacts shareholder value. Revenue's a nice metric, but there are a lot of different ways to make money other than just growing the topline. You should know that at REV, it's all about making money.

所以你回顧這一年，我們真的為我們的團隊感到非常自豪。該團隊做得非常出色。但我們實際上在 7 週前就完成了我們的高五目標，並且我們已經進入了 2008 財年（原文如此）[2018]。讓我為我們對 2008 年（原文如此）和 2018 年的展望做好準備。首先，我們今天重申 10 月在後續行動中提出的指導意見，即 2018 財年全年淨銷售額為 24 億美元至 27 億美元，調整後 EBITDA 為 2 億美元至 2.2 億美元。成長超過15%，調整後EBITDA成長超過30%。再說一次，據我所知，沒有其他工業公司能達到這種表現，而且這是連續三年的表現。我還應該澄清的是，在我的整個職業生涯中，它始終是為了賺錢，而這反過來又直接影響股東價值。收入是一個很好的指標，但除了增加收入之外，還有很多不同的賺錢方式。你應該知道，在REV，一切都是為了賺錢。

Our business segments are reporting, as Dean said, strong demand for our products. Consider our continued economic recovery in the United States, and the fact that almost 60% of what we sell in the U.S. market is based on federal and local tax revenues. We have a very steady state of demand that just is going to continue to grow as we move through 2018 and beyond. Couple that with the incredible demand in the RV market, and I like our chances a lot, as we move into 2018.

正如迪恩所說，我們的業務部門報告稱，對我們產品的需求強勁。考慮一下我們美國經濟的持續復甦，以及我們在美國市場上銷售的近 60% 的產品都是基於聯邦和地方稅收收入。我們的需求非常穩定，隨著 2018 年及以後的發展，這種需求將持續成長。再加上房車市場令人難以置信的需求，隨著我們進入 2018 年，我非常喜歡我們的機會。

We're out of the blocks hot, in Q1, with new initiatives. We announced that we have entered into a joint venture in China with Chery Holding Group to manufacture RVs, ambulances and other specialty vehicles for distribution, not only within China, but also in the select international markets. Chery is the largest exporter of passenger vehicles in China, serving 80 different countries and 6.5 million people worldwide. We took 2 years and a lot of diligence before we chose the partner we wanted to collaborate with in China. And quite frankly, we couldn't be more pleased with our new relationship with Chery. The initiative, coupled with the establishment of our new plant in Brazil, that was opened in May, is a huge step forward in meeting our desires to be a worldwide manufacturer of specialty vehicles. Our Brazil plant, which serves all of Latin America, is already turning a profit after only 6 months of operation. It will take significantly longer to reach this type of financial performance in China with our China JV. But clearly, demand will be much larger when the China operation is up and running.

我們在第一季推出了新舉措，擺脫了困境。我們宣布，我們已與奇瑞控股集團在中國成立一家合資企業，生產房車、救護車和其他特種車輛，不僅在中國國內，而且在選定的國際市場上進行分銷。奇瑞是中國最大的乘用車出口商，為全球 80 個不同國家和 650 萬人提供服務。我們花了兩年的時間和大量的努力選擇了我們想要在中國合作的合作夥伴。坦白說，我們對與奇瑞的新關係感到非常滿意。這項舉措，加上我們於五月在巴西開設的新工廠，是我們在實現成為全球特種車輛製造商的願望方面向前邁出的一大步。我們的巴西工廠為整個拉丁美洲提供服務，僅在營運 6 個月後就已實現盈利。我們的中國合資企業要在中國達到這種財務表現需要更長的時間。但顯然，當中國業務啟動並運作時，需求將會大得多。

We introduced our first new product for 2018 at the end of October at the LA Auto Show in conjunction with Chrysler. We introduced the first-ever hybrid wheelchair accessible mobility van. The vehicle successfully completed its required crash testing earlier this week, and we're very excited to get this vehicle into the market, beginning in January. So obviously, 7 weeks into the new year, and we're already off to just a really great start, very pleased by where we're at in 2008 (sic) 2018 so far.

我們於 10 月底在洛杉磯車展上與克萊斯勒聯合推出了 2018 年首款新產品。我們推出了首款混合動力輪椅無障礙行動貨車。該車輛於本週稍早成功完成了所需的碰撞測試，我們非常高興能夠從一月份開始將該車輛推向市場。顯然，新年已經過去了 7 週，我們已經有了一個非常好的開始，我們對 2008 年（原文如此）2018 年迄今為止所取得的成績感到非常滿意。

Before I turn over to questions and answers, I've asked Nicole Gustafson to join us. She is our VP of tax. Obviously, a lot of interesting breaking news coming out of Washington, D.C. overnight. Many of you know that we are, effectively, today, at least, a domestic-centric company, which means that we are paying probably the max -- not probably, we are paying the highest tax rate, probably, of any U.S. company. So I wanted Nicole to give you some really precise numbers as to what that means, assuming that the vote goes through Congress today. We expect it fully will -- may have already been done. But if she could give us some exact numbers as to what that will mean to us as a company in 2018.

在開始提問和回答之前，我已邀請 Nicole Gustafson 加入我們。她是我們的稅務副總裁。顯然，華盛頓特區一夜之間傳出許多有趣的突發新聞。你們中的許多人都知道，我們至少在今天實際上是一家以國內為中心的公司，這意味著我們支付的稅率可能是所有美國公司中最高的——不可能，我們支付的稅率可能是所有美國公司中最高的。所以我想讓妮可給你們一些非常準確的數字來說明這意味著什麼，假設今天國會投票通過。我們預計它會完全實現——可能已經完成了。但如果她能給我們一些確切的數字，說明這對我們公司在 2018 年意味著什麼。

President Trump is expected to sign tax reform into law, which is hugely beneficial to REV Group. Assuming a full-year impact of tax reform in fiscal 2018, we expect to normalize effective tax rate of approximately 28% to 30%, a decrease of nearly 10% from our previous rate. We estimate the fiscal 2018 effective tax rate will be in the range of 23% to 25% due to other one-time benefits from tax reforms. This will also free up additional working capital each year, estimated at $15 million for 2018.

川普總統預計將簽署稅改法案，這對 REV 集團來說是非常有利的。假設稅制改革對2018財年全年產生影響，我們預期有效稅率將正常化至約28%至30%，較先前的稅率下降近10%。由於稅改帶來的其他一次性好處，我們預計 2018 財年的有效稅率將在 23% 至 25% 之間。這也將每年釋放額外的營運資金，預計 2018 年將達到 1500 萬美元。

Thanks, Nicole. And with that, let's turn it over to questions and answers.

謝謝，妮可。接下來，讓我們將其轉向問題和答案。

(Operator Instructions) Our first question is from Mig Dobre with Robert W. Baird.

（操作員說明）我們的第一個問題來自 Mig Dobre 和 Robert W. Baird。

My first question is really surrounding guidance. I -- I'm wondering if maybe you can help us refine our assumptions a little bit at segment level. I'm curious as to how you're thinking of segment level growth versus your 12.5% overall growth guidance. And also some color by segment on margin progression.

我的第一個問題實際上是圍繞指導。我——我想知道你是否可以幫助我們在細分層面上稍微完善我們的假設。我很好奇您如何看待細分市場水準的成長以及 12.5% 的整體成長指導。還有一些按邊距進度分段的顏色。

I think we're going to have more the same, obviously, in 2018. We had a very strong Fire & Emergency performance in '17. That's going to continue. As a matter of fact, our Fire backlog is significantly higher at this time than it was last year even at this time. I think all other segments, quite frankly, are up, and they're going to be up, obviously, reflecting the type of guidance we gave. Is there any specific segment that you're asking about, Mig?

我認為 2018 年我們顯然會出現更多相同的情況。這種情況將會持續下去。事實上，我們此時的消防積壓量明顯高於去年同期。坦白說，我認為所有其他細分市場都在上漲，而且顯然它們也會上漲，這反映了我們提供的指導類型。 Mig，您有什麼具體想問的部分嗎？

Yes. I mean, obviously, these businesses all sort of have a different end markets and cadence here. I'm -- I know that in the past, you've talked about Fire & Emergency seeing the highest growth in '18 and followed by Commercial, followed by RV. I'm wondering if that's still your expectation. And then you are guiding for 100 basis points of EBITDA margin expansion. I don't know if you have a more refined view as to one segment potentially getting more expansion than the others.

是的。我的意思是，顯然，這些企業都有不同的終端市場和節奏。我知道，在過去，您談到了消防和緊急情況在 18 年增長最快，其次是商業，其次是房車。我想知道這是否仍然是你的期望。然後您將 EBITDA 利潤率擴大 100 個基點。我不知道您是否對某個細分市場可能比其他細分市場獲得更多擴張有更清晰的看法。

Well, more of the same, as I said. And obviously, we've got a couple of segments in there that have not been performing at the level that we want them to, Commercial being the most obvious one. And we need that to perform better in '18 to, really, help us get to that guidance number. And you saw the improvement in RV in '17. We got to see more improvement there as we see in '18. So RV and Commercial have to pick up the pace, and we got to make sure that Fire & Emergency continues on the path forward that they've been doing.

嗯，正如我所說，更多的是相同的。顯然，我們有幾個細分市場沒有達到我們想要的水平，商業是最明顯的一個。我們需要它在 18 年表現得更好，真正幫助我們達到指導數字。你在 17 年看到了 RV 的改進。正如我們在 18 年看到的那樣，我們必須看到更多的改進。因此，房車和商業必須加快步伐，我們必須確保消防和緊急救援繼續沿著他們一直在做的道路前進。

Sure, Tim. But I'm wondering, what's embedded in your plan as you're looking into the year? Do you have -- because RV has obviously done better than you expected initially, right? So is that sustainable? Do we build upon this? And maybe, more color on Commercial too.

當然，提姆。但我想知道，在您展望這一年的計劃中包含哪些內容？你有嗎——因為 RV 的表現顯然比你最初預期的要好，對吧？那麼這是可持續的嗎？我們是否以此為基礎？也許，商業廣告也能有更多色彩。

Yes, absolutely. I mean, the RV recovery that we had in '17, is just going to continue. We got all these new products that we put out there in September. We've had some good backlog building. And that market has not cooled whatsoever. As a matter of fact, I think, specifically, the large As tend to be a little soft. They continue to be a little soft. But we're taking more share, as I mentioned, I think, on our last call. So that's going to continue on its upward movement. We think that a lot of the change that we made in Commercial, we've got some new products out there. I mentioned one here on the call, the new hybrid Chrysler. Those new products, plus, I think, better market positioning, is going to turn that around. We've been very discerning on the deals we will take. We'll continue to be discerning. But that doesn't mean we're sit -- we're standing still and not trying to do things to improve the overall cost basis of our product. And we think that will help us get that Commercial segment performing much better than it has the last 12 months.

是的，絕對是。我的意思是，我們 17 年的 RV 復甦將會繼續下去。我們收到了九月推出的所有這些新產品。我們已經建立了一些良好的積壓工作。而這個市場也沒有任何降溫。事實上，我認為，具體來說，大A往往有點軟。他們仍然有點軟弱。但正如我在上次電話會議中提到的那樣，我們正在獲得更多份額。因此，這將繼續向上運動。我們認為，我們在商業方面做出了很多改變，我們已經推出了一些新產品。我在電話會議上提到了一款新的混合動力克萊斯勒汽車。我認為，這些新產品，再加上更好的市場定位，將扭轉這一局面。我們對將要進行的交易非常挑剔。我們將繼續保持敏銳的洞察力。但這並不意味著我們會袖手旁觀——我們會原地踏步，不會嘗試採取措施來改善我們產品的整體成本基礎。我們認為這將幫助我們使商業部門的表現比過去 12 個月好得多。

All right. Well, I guess I'll let other people follow-up on that. But before I get in the queue, a question on CapEx. If I understood properly, you talked about CapEx still remaining in the $50 million range. This is, frankly, a little bit higher than what I expected, and what I recall at the IPO. What changed here? And how do we you think about your CapEx needs beyond fiscal '18?

好的。好吧，我想我會讓其他人跟進。但在我進入隊列之前，有一個關於資本支出的問題。如果我理解正確的話，您談到資本支出仍保持在 5000 萬美元的範圍內。坦白說，這比我的預期以及我在 IPO 時的記憶要高一些。這裡發生了什麼變化？您如何看待 18 財年後的資本支出需求？

It's going to be $50 million. And actually, I thought, we guided to that during the IPO that it would be probably the same for '18 and then probably start drifting off. We're not going to be shy about spending money to make sure we position ourselves for growth. It takes money to make money, quite frankly. And we're putting some money into our plants to increase the efficiencies that help get our costs down. We continue to implement our ERP system, and we continue to spend on the parts and service part of our business. We think that, that's an appropriate spend for '18. It should start coming down after '18. And I think we really -- we're not going to be shy. We think we need to be out there, spending that kind of money to get the growth that we need.

這將是5000萬美元。事實上，我認為，我們在 IPO 期間就指導到 18 年可能會是一樣的，然後可能會開始偏離。我們不會羞於花錢來確保我們為成長做好準備。坦白說，賺錢需要錢。我們正在向我們的工廠投入一些資金，以提高效率，從而幫助降低成本。我們繼續實施我們的 ERP 系統，並繼續在我們業務的零件和服務部分上投入資金。我們認為，這對 18 年來說是合適的支出。 18年後應該會開始下降。我認為我們真的不會害羞。我們認為我們需要投入大量資金來實現我們所需的成長。

Our next question is from Jamie Cook with Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的傑米庫克。

This is actually Themis on for Jamie. Just a question on -- going back to Commercial a bit. I appreciate that you're being selective there in terms of the opportunities that you're pursuing, but there were some hopes for growth in Q4. So I guess, when do you see the sales inflecting materially? And how should we think about production ramping this year, given the healthy backlog growth we saw in the quarter?

這其實是忒彌斯為傑米準備的。只是一個問題——回到商業領域。我很欣賞你們在尋求機會方面的選擇性，但第四季有一些成長的希望。所以我想，您什麼時候會看到銷售額有重大變化？考慮到本季積壓訂單的健康成長，我們應該如何看待今年產量的成長？

Well, we're introducing new products in the first quarter, as I mentioned. And I think those products will start to build some backlog. And as typical, we have a very backend-loaded plan. And it's going to be the same for '18. So you'll see some nice ascension in the Commercial area in Q2, 3 and 4, as we really get out of the blocks with the new products here in Q1.

嗯，正如我所提到的，我們將在第一季推出新產品。我認為這些產品將開始積壓一些。像往常一樣，我們有一個後端負載很大的計劃。 18 年也是如此。因此，您將在第二季、第三季和第四季看到商業領域的一些不錯的提升，因為我們在第一季度憑藉新產品真正擺脫了困境。

Got it. And then maybe going back to the JV in China. Could you, maybe, provide some more color on the market there? Why you find it attractive? And how should we think about the opportunity there, longer term? And you also mentioned some other select markets. So what geographies are you targeting there specifically?

知道了。然後也許會回到中國的合資企業。也許您能提供那裡市場上更多的顏色嗎？為什麼你覺得它有吸引力？從長遠來看，我們應該如何看待那裡的機會？您還提到了其他一些精選市場。那麼您的具體目標地區是哪些呢？

Well, that's why I gave the detail on Chery. The reason we chose Chery is, not only are they a very prominent vehicle manufacturer in the China market, but they are the #1 exporter of passenger vehicles to 80 different countries around the world. So signing up with them, initially, with RVs and ambulances, then expanding into the other specialty products that we do make, the biggest demand right now in China, believe it or not, is RVs and ambulance, and that's where they want to start. But it's not just for the China market. We are really putting together a master plan, whereby, we will be exporting from China into select countries. Certainly, the 80 countries that they export into are now all candidates for potential export. So it's a two-play, if you want to call it that, that we executed with Chery, that's why did choose Chery. It's going to take a while for it to ramp. Nothing's done small in China. So it's going to take us a while to make sure the plant gets effectively built up and running. But we were very careful on picking the partner and making sure that we actually have a dual-pronged marketing approach with the partner that we did choose.

嗯，這就是我詳細介紹奇瑞的原因。我們選擇奇瑞的原因是，他們不僅是中國市場上非常著名的汽車製造商，也是向全球 80 個不同國家出口乘用車的第一大出口商。因此，最初與他們簽約的是房車和救護車，然後擴展到我們生產的其他特殊產品，無論你相信與否，中國目前最大的需求是房車和救護車，這就是他們想要開始的地方。但這不僅適用於中國市場。我們實際上正在製定一個總體計劃，根據該計劃，我們將從中國出口到選定的國家。當然，他們出口的 80 個國家現在都是潛在出口候選國。所以，如果你想這麼說的話，我們與奇瑞一起執行了兩次合作，這就是我們選擇奇瑞的原因。它需要一段時間才能上升。在中國，沒有一件事情是小事做的。因此，我們需要一段時間才能確保工廠有效建成並運作。但我們在選擇合作夥伴時非常謹慎，並確保我們與我們選擇的合作夥伴實際上擁有雙管齊下的行銷方法。

And then, lastly, could you give us an update on your after-market strategy, and where we currently stand in terms of aftermarket as percentage of total sales?

最後，您能否向我們介紹一下您的售後市場策略的最新情況，以及我們目前售後市場佔總銷售額的百分比的情況？

Yes. Aftermarket continues, we'll give you the exact number here. But aftermarket, as an initiative, is growing. We plan to really get it moving at a much better pace here in '18. We put a lot of the blocking and tackling in place the last 18 months, 24 months, really, creating a database, getting a portal in place, getting warehouses up and running. It takes a lot of money and a lot of effort to put that together. And that's pretty much behind us now. So now it's a matter of executing. And we have a pretty aggressive plan in 2018 to grow parts in particular. And that's, obviously, part of the growth that we're showing in the earnings and the revenue, primarily on the earnings side, because that is much more profitable than unit sales. As far as a percentage of total revenue, today, it's about 4%, which, obviously, is not very meaningful, but stay tuned. This doesn't happen overnight. To break the paradigms, the purchasing paradigms in the market, it takes a lot of blocking and tackling and a lot of grassroots efforts. But those have all started, and we're confident that we're going to be able to pull those off here, as we move forward in '18.

是的。售後市場仍在繼續，我們將在這裡為您提供確切的數字。但售後市場作為一項措施正在不斷增長。我們計劃在 18 年真正以更快的速度推進。在過去的 18 個月、24 個月裡，我們確實採取了許多阻止和解決措施，創建了資料庫，建立了門戶，建立並運行了倉庫。將其整合在一起需要大量資金和大量精力。現在這一切已經過去了。所以現在是執行的問題。我們在 2018 年有一個非常積極的計劃，特別是零件的成長。顯然，這是我們在收益和收入中顯示的成長的一部分，主要是在收益方面，因為這比單位銷售的利潤要高得多。就佔總收入的百分比而言，目前約為 4%，顯然意義不大，但請繼續關注。這不會在一夜之間發生。要打破市場的典範、購買範式，需要大量的阻擋和攻克，需要大量的基層努力。但這些都已經開始了，我們有信心在 18 年繼續前進時能夠在這裡實現這些目標。

Our next question is from Nicole DeBlase with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Nicole DeBlase。

So my first question is around the Commercial business. Just to clarify, was any of the backlog growth that you saw from the LA bus order, or does that come into the backlog later?

我的第一個問題是關於商業業務的。只是為了澄清一下，您從洛杉磯巴士訂單中看到了積壓的增長，還是後來出現了積壓？

No, that's in the backlog.

不，那是積壓的。

And was that -- did that come in this quarter or last quarter?

那是在本季還是上季發生的？

This quarter.

本季。

Okay, got it. Can you possibly quantify how much of it was LA bus?

好的，明白了。你能計算出其中有多少是洛杉磯巴士嗎？

Well, I can tell you, we don't, obviously, list out specific deals, because that allows our competition to back into the numbers. But I can tell you, on a macro basis, that order is worth a minimum of $400 million. But the order is a split order. So it's half and half. Half of it goes in now, and the other half goes in about a year from now. So you could do the math, Jamie -- I'm sorry, Nicole. Sorry about that. It's about half of that. So you could do the math.

好吧，我可以告訴你，顯然我們不會列出具體的交易，因為這會讓我們的競爭對手回到數字上。但我可以告訴你，從宏觀來看，這筆訂單的價值至少為4億美元。但該訂單是拆分訂單。所以這是一半一半。一半現在投入，另一半大約一年後投入。所以你可以算一下，傑米——對不起，妮可。對此感到抱歉。大約是一半。所以你可以算一下。

Okay, got it. That's helpful. And then the organic growth within Fire & Emergency is really strong this quarter and even on a pretty tough year-on-year comp. So just curious, the backlog growth did slow a little bit year-on-year, although pretty strong Q-on-Q. How do you think about organic growth within the Fire & Emergency business, going into 2018?

好的，明白了。這很有幫助。本季消防與緊急救援業務的有機成長非常強勁，即使年比比較也相當艱難。奇怪的是，積壓訂單的成長確實比去年同期放緩，儘管季比相當強勁。您如何看待 2018 年消防和緊急業務的有機成長？

It's actually very strong. Right now, our biggest concern in Fire is being able to get the product out, where 3 of our segments -- 2 out the 3 segments that we've got are already backlogged into the fourth quarter. The other one will likely be backlogged into the fourth quarter here within the next 3 to 4 weeks. So our biggest concern in Fire is making sure we can get our capacities up. The demand is -- the demand has been somewhat flat year-over-year, but we're doing much better with the product lines that we've got. Emergency, the same thing. Emergency has been a little bit soft with the contractors, and I think, maybe, some of that is uncertainty around the ACA and what's going on there. But they can't wait forever. And we actually just got some nice business into our backlog here in the last 2 weeks from a large ambulance contractor that was kind of a surprise for us. So I think they've been holding back a little bit, waiting to see what's going on. And Congress, well, they can't wait forever. So we feel, again, we're going to have a very strong year in Fire & Emergency across the board.

它實際上非常強大。目前，我們在 Fire 方面最關心的是能否推出產品，我們的 3 個細分市場——我們現有的 3 個細分市場中的 2 個——已經積壓到第四季度了。另一筆訂單可能會在接下來的 3 到 4 週內積壓到第四季。因此，我們在消防方面最關心的是確保我們能夠提高我們的能力。需求與去年同期相比有些持平，但我們現有的產品線做得更好。緊急情況，同樣的情況。承包商的緊急情況有些軟弱，我認為，也許其中一些是 ACA 以及那裡正在發生的事情的不確定性。但他們不能永遠等待。事實上，在過去的兩周里，我們剛剛從一家大型救護車承包商那裡獲得了一些不錯的訂單，這對我們來說有點驚訝。所以我認為他們一直在猶豫，等著看會發生什麼。國會，他們不能永遠等待。因此，我們再次感到，我們將在消防和緊急情況領域全面度過非常強勁的一年。

Okay. And then I'll just squeeze one more in before I pass it on. Recreation margins were also really strong this quarter. I know that you guys listed all of the factors behind that in the press release, and you talked about it on the call. But will those factors continue into 2018, driving a similar magnitude of margin expansion into next year?

好的。然後我會在傳遞它之前再擠一顆。本季的娛樂利潤也非常強勁。我知道你們在新聞稿中列出了背後的所有因素，並且你們在電話中談到了這一點。但這些因素是否會持續到 2018 年，推動明年類似幅度的利潤率擴張？

Yes. I think we're starting to feel really good about how we really restructure our sales down in Decatur, in particular. I think you recall that we had everything in 1 plant. Now we've got 3 plants up and running in Decatur. That's really loosened up and allowed the products to flow. The team down on the ground there has really built some nice efficiencies. And those continue to get better and better every month. So strong market. We're taking share on the high end, and I just think the manufacturing efficiencies are going to continue through 2018.

是的。我認為我們開始對如何真正重組迪凱特的銷售感到非常滿意，尤其是在迪凱特。我想你還記得我們在工廠裡擁有所有的東西。現在我們在迪凱特已建成並運營 3 家工廠。這確實放鬆了並允許產品流動。那裡的團隊確實提高了一些效率。這些每個月都在變得越來越好。市場如此強勁。我們正在高端領域佔據份額，我認為製造效率將持續到 2018 年。

Our next question is from Steve Volkmann with Jefferies.

我們的下一個問題來自 Jefferies 的 Steve Volkmann。

How much of Commercial is the shuttle buses these days roughly?

現在的接駁車商業化程度大約是多少？

About 1/3 of it. So about 35% of Commercial is shuttle.

大約有1/3。所以大約 35% 的商業是接駁車。

Okay. And is that shuttle -- do you expect in those shuttle buses to be up in '18? Or are we going to continue to, kind of, wean off the less profitable deals?

好的。您預計那些班車會在 18 年開通嗎？或者我們會繼續放棄利潤較低的交易？

Well, we're -- as I mentioned just a minute ago, we're not sitting still. We don't like the fact that we're not as competitive as we want to be. So I think you should see a much better movement in shuttle bus this year. We will be in the marketplace, and we will be competing. I think some of what we're doing to make ourselves more competitive will start to show itself towards the back half of the year.

嗯，正如我剛才提到的，我們不會坐以待斃。我們不喜歡這樣一個事實：我們沒有達到我們想要的競爭力。所以我認為今年你應該會看到穿梭巴士的更好發展。我們將進入市場，我們將參與競爭。我認為我們為提高競爭力所做的一些努力將在今年下半年開始顯現。

Okay. And just given -- I assume the backlog that you do have is more profitable, since that's what you've been focusing on. Is it reasonable to expect that this segment, the Commercial segment, will have, maybe, the strongest margin growth in 2018?

好的。就我而言，我認為您所擁有的積壓訂單更有利可圖，因為這就是您一直關注的重點。是否可以合理預期商業細分市場在 2018 年將實現最強勁的利潤成長？

It's probably -- it's going to be good. But I don't think it's going to be necessarily the strongest, just because of the momentum that we've got built up in RV. I think RV is going to probably continue to be the strongest, and Fire & Emergency keeps moving along as well. It's going to be good, it's going to be better than what we've had. But it's not going to be the strongest. I mean, we just got too much momentum built up in those other 2 segments.

可能會很好。但我認為它不一定是最強的，只是因為我們在 RV 領域累積了動力。我認為 RV 可能會繼續成為最強的，消防與緊急救援也將繼續發展。一切都會好起來的，會比我們所擁有的更好。但它不會是最強的。我的意思是，我們在其他兩個領域累積了太多動力。

Our next question is from Charlie Brady with SunTrust.

我們的下一個問題來自 SunTrust 的 Charlie Brady。

Tim, I hate to keep beating a dead horse on Commercial, but I just want to make sure I'm squared up on this with the LA County order. That business does not hit until beginning of fiscal '19, is that correct?

提姆，我討厭在商業廣告上繼續死馬，但我只是想確保我在這方面與洛杉磯縣的命令保持一致。該業務直到 19 財年開始才開始成長，對嗎？

That's correct. We'll be shipping next year at this time.

這是正確的。我們將於明年這個時候出貨。

So I guess, if I do the math that you talked about in the call, it looks -- and I backed it out of backlog, the backlog is down pretty meaningfully in Commercial. And I'm just trying to understand that maybe there's a cadence or a lag time -- order time when that's going to pick up. I guess, I'm just trying to square it up with kind of what expected growth you could see in Commercial, given that the LA stuff is not going to hit, really, in '18 at all, and the base backlog ex that is down year-on-year.

所以我想，如果我按照你在電話中談到的數學計算，看起來——而且我支持將其從積壓中剔除，商業方面的積壓明顯下降。我只是想了解，也許存在節奏或滯後時間 - 訂單時間會加快。我想，我只是想把它與你在商業中看到的預期增長相結合，因為洛杉磯的東西實際上不會在 18 年出現，而且基本積壓的前訂單是同比下降。

Yes. You're doing the math correctly. And again, the basket that we do have in Commercial has got a lot of products into it. You got school bus in there, you have terminal trucks, you have sweepers, you have mobility vans, you got shuttle bus, and you got the terminal -- or I'm sorry, the transit buses as well. So there's a lot of moving parts in that backlog. But all the other backlogs, it's -- they're kind of seasonal in nature, particularly school bus. I mean, school bus right now, I mean, anyone that's got school bus, it's not -- you've got almost no backlog. It's very, very low. And that's kind of the time of thing that you've got here too in shuttle. About 60% of shuttle buses are federally funded on FTA contracts. And those dollars, kind of, flow at different times of the year as well. So you got the math right. This time of year, for all non-type of transit buses, that's the type of thing, unless you've got a big backlog in one of those, like LA, the backlogs tend to be kind of low this time of the year.

是的。你的數學計算正確。再說一遍，我們在商業領域的籃子裡有很多產品。那裡有校車、航站樓卡車、清掃車、移動貨車、穿梭巴士和航站樓——或者對不起，還有公車巴士。因此，積壓的工作中有很多變動的部分。但所有其他積壓的訂單本質上都是季節性的，尤其是校車。我的意思是，現在的校車，我的意思是，任何有校車的人，都沒有——幾乎沒有積壓。這是非常非常低的。這也是你搭乘太空梭來到這裡的時候。大約 60% 的班車由聯邦根據 FTA 合約提供資金。這些美元也在一年中的不同時間流動。所以你的數學是正確的。每年的這個時候，對於所有非類型的公車巴士來說，都是這樣的情況，除非其中一個公車有大量積壓，例如洛杉磯，否則一年中這個時候的積壓往往會比較低。

Okay. So we shouldn't really -- I guess what I'm trying to get to is -- and I think you don't -- you don't -- we don't want to read into an organic backlog number in Q4, carry that on through what we expect in 2018, because it's obviously being skewed by timing and seasonality here and obviously, some of the shorter lead time in some of the products and the pickup on new stuff, correct?

好的。所以我們不應該——我想我想要的是——而且我認為你不——你不——我們不想解讀第四季度的有機積壓數量，繼續我們對2018 年的預期，因為它顯然受到時間和季節性的影響，顯然，有些產品的交貨時間較短，以及新產品的提貨，對嗎？

You got it exactly right. Don't push the panic button.

你說得完全正確。請勿按下恐慌按鈕。

Got it. And just one more. On the Fire side, just back to your comment about ability to ramp up production to meet demand. Can you just expand on that a little bit. What are you doing to get that ramp up to meet that -- the high demand?

知道了。還有一個。在火方面，回到您關於提高產量以滿足需求的能力的評論。能稍微擴充一下嗎？您正在做什麼來提高產量以滿足高需求？

Well, it's challenging. I think, you look at our plants, we're doing everything we can to the point where we're trying to add people onto a second shift. Labor is always an issue in manufacturing, and we're challenged there to some extent. But we're working it. We're looking at different alternatives to, maybe, unload certain areas of the plant, do some things a little bit different in different areas, where we've got other capacity. We're really managing that well, because, as you know, there is a lot of pent-up demand in Fire, and we don't like our backlogs out that far. When we're running backlogs out to August, September, that's not healthy, and they got to be less than that. So we're working it every way we can, working some second shift, if we can, if we get the people or off-loading some of the processes to plants that have capacity.

嗯，這很有挑戰性。我想，看看我們的工廠，我們正在盡一切努力，試圖將人員增加到第二班。勞動力一直是製造業的一個問題，我們在這方面受到了一定程度的挑戰。但我們正在努力。我們正在尋找不同的替代方案，也許可以卸載工廠的某些區域，在我們擁有其他產能的不同區域做一些稍微不同的事情。我們確實管理得很好，因為如您所知，Fire 中有很多被壓抑的需求，我們不喜歡積壓那麼久。當我們將積壓的訂單處理到八月、九月時，這並不健康，而且數量必須少於這個數量。因此，我們正在盡一切努力，如果可以的話，進行第二輪班制，如果我們得到了人員或將一些流程轉移到有能力的工廠。

Our next question is from Mike Baudendistel with Stifel.

我們的下一個問題來自 Stifel 的 Mike Baudendistel。

Just wanted ask you about all this international business you were talking about with China, et cetera. Just, how big you think the international revenue can be as a percentage of your total revenue in, say, 5 years. And just, as a little bit of background on those markets, I mean, is that just as fragmented as the markets that you compete in, in the U.S., where you're going to be the big OEM competing a number of small ones?

只是想問您所談論的與中國的所有國際業務等等。只是，您認為 5 年內國際收入佔您總收入的百分比有多大。只是，作為這些市場的一點背景，我的意思是，這是否與您競爭的市場一樣分散，在美國，您將成為大型 OEM 與許多小 OEM 競爭？

Yes. This is -- it's a great question. I'd like to tell you, it's going to be equal, but that's a big number, right? But it's a big world out there. And we've done a lot of research into it. We're dedicated to that market, but we're attacking that in a different way, for an example, we get people all the time trying to take -- have us take a look at Europe. We have 0 interest in the European market, 0. It's -- it is very much like our market here. It's very convoluted. It's not been consolidated. And you'd have to buy a lot of different companies to make it work, but we'd like -- we like a lot of the rest of the world and getting tee-ed up then in Latin America and moving that and that's moving very quickly. We like our presence there. We felt like we needed to be on the ground there, and that is growing very quickly. The China initiative will be much, much larger than even Latin America, just going to take some time to get that traction. But keep in mind, it's a 2-pronged strategy. It's a strategy to enter the China market, but it's also using that type of manufacturing base to attack a lot of different countries that aren't even on most people's radar screens today. So it -- we expect it to be meaningful. A lot of us on the management team here have a lot of experience internationally, and we're very comfortable with it. We just wanted to make sure we put the right strategy together. And then the -- I can tell you, both strategies that we've embarked on are going to reap some very strong benefits. So I don't know. Ask me a year from now, I will have a better idea of what it may look like, but in 5 years, it could easily be equal to what we're doing now, easily.

是的。這是一個很好的問題。我想告訴你，它會是相等的，但這是一個很大的數字，對吧？但外面的世界很大。我們對此做了很多研究。我們致力於這個市場，但我們正在以不同的方式攻擊這個市場，例如，我們一直讓人們嘗試——讓我們看看歐洲。我們對歐洲市場的興趣是 0，0。這非常複雜。它沒有被合併。你必須收購很多不同的公司才能使其發揮作用，但我們希望——我們喜歡世界其他地方，然後在拉丁美洲做好準備，推動這一點，這正在推動非常快。我們喜歡我們在那裡的存在。我們覺得我們需要腳踏實地，而且這一點正在迅速增長。中國的倡議將比拉丁美洲大得多，只是需要一些時間才能獲得這種吸引力。但請記住，這是一個雙管齊下的策略。這是進入中國市場的策略，但它也利用這種類型的製造基地來攻擊許多不同的國家，而這些國家甚至不在今天大多數人的雷達螢幕上。所以我們希望它是有意義的。我們管理團隊中的許多人擁有豐富的國際經驗，我們對此感到非常滿意。我們只是想確保制定正確的策略。然後——我可以告訴你，我們已經採取的這兩種策略都將獲得一些非常強大的好處。所以我不知道。一年後問我，我會更了解它會是什麼樣子，但五年後，它很容易就等於我們現在正在做的事情，很容易。

Great, very encouraging. Just wanted to also ask you, just where you stand on consolidating the purchasing, the procurement, sort of, across the enterprise. So if you can give us some sense of how far you are along in that process?

太棒了，非常鼓舞人心。我也想問你，你在整合整個企業的採購方面持什麼立場。那麼您能否讓我們了解一下您在這個過程中進展到了什麼程度？

Nicely along. I've said, it's all about making money, right? And if you're growing your top line by 15 or 18, your bottom line by 30, it's got to be having a meaningful impact onto the bottom line of our company. It is. Our sourcing team is doing a great job. We are well into having that working along at a very nice pace. The nice thing about that, too, is if you look at, when we pick up 4 companies, we can load those under the REV umbrella and start getting synergies almost immediately with the sourcing that we do. It's the first thing that we do. And the team's very good. Yes, I think we've got some good arrangements out there, and we're reaping the benefits of those, and that's why our bottom line is growing the way it is as well.

相處得很好。我說了，都是為了賺錢，不是嗎？如果您的收入成長了 15 或 18，利潤成長了 30，這一定會對我們公司的利潤產生有意義的影響。這是。我們的採購團隊做得很好。我們很樂意以非常好的速度進行這項工作。這樣做的好處是，如果你看一下，當我們選擇 4 家公司時，我們可以將它們納入 REV 保護傘下，並幾乎立即開始與我們所做的採購產生協同效應。這是我們要做的第一件事。而且團隊非常好。是的，我認為我們已經有了一些很好的安排，我們正在從中受益，這就是為什麼我們的利潤也在以這種方式增長。

Our next question is from Courtney Yakavonis with Morgan Stanley.

我們的下一個問題來自摩根士丹利的考特尼·亞卡沃尼斯。

Oops, sorry, I think I was on mute. I just wanted to go back to the partnership with Chery. I think, the press release you'd said that we can expect to see some of the first production of the vehicles in the second half of next year. And appreciating that it's going to be a much larger initiative that will take some time, but how much are you guys expecting in your 2018 guidance right now?

哎呀，抱歉，我想我處於靜音狀態。我只是想回到與奇瑞的合作關係。我認為，您在新聞稿中說，我們預計在明年下半年看到部分車輛的首批生產。我們很高興這將是一項規模更大的舉措，需要一些時間，但你們現在對 2018 年的指導有何期望？

Almost nothing. With the -- it's going to be a very cautious and slow ramp-up. It's going to be more of a '19-and-beyond story. It takes a while to get things up and running in China. And as I mentioned, in China, it's kind of like Texas. Everything's big. And so it's going to take us a while. So very little to nothing in 2018.

幾乎什麼都沒有。隨著 - 這將是一個非常謹慎和緩慢的增長。這將更像是一個19歲及以後的故事。在中國建立並運作起來需要一段時間。正如我所提到的，在中國，這有點像德克薩斯州。一切都很大。所以這需要我們一段時間。所以2018年幾乎沒有。

Okay. Got you. And then just on the RV side, can you just give us a breakdown of your mix on Class A versus C in 4Q? And then kind of what your projections are for next year with some of the new products you're rolling out?

好的。明白你了。然後在 RV 方面，您能否向我們詳細介紹一下第四季度 A 級與 C 級的混音情況？那麼您對明年推出的一些新產品有何預測呢？

Yes. As are about 75% of our sales. And as you know, I think we compete mostly in the mid and high-end range. The midrange has been very active. The high-end has been a little soft. But about 75% are As. So that remain -- so 25%, and that's split right now pretty evenly Cs and Bs. As you know, the Cs and Bs are very active. Our challenge on Bs and Cs is our backlogs are too big there too. We're trying to work as fast as we can to work down those backlogs, and we're spending some money to ramp-up our manufacturing capability, particularly on Bs. The Bs have had incredible, I think, acceptance in the marketplace.

是的。我們銷售額的 75% 左右也是如此。如您所知，我認為我們主要在中高端領域競爭。中頻非常活躍。高端已經有點軟了。但大約 75% 是 A。所以剩下的就是 25%，現在 C 和 B 的比例相當均勻。如您所知，C 和 B 非常活躍。我們在 B 和 C 方面面臨的挑戰是我們的積壓也太大了。我們正在努力盡快解決這些積壓訂單，我們正在花費一些資金來提高我們的製造能力，特別是在 Bs 方面。我認為 B 級產品在市場上獲得了令人難以置信的接受度。

Our next question is from Joel Tiss with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場的 Joel Tiss。

I wonder, if you can give us some idea, maybe, even 5 years out, like what kind of targeted EBITDA margins can we expect across the different divisions? Can you give us a little sense of that, like what the target is longer term?

我想知道，您能否給我們一些想法，也許，甚至 5 年後，例如我們可以期望不同部門的目標 EBITDA 利潤率是多少？您能否給我們一些了解，例如長期目標是什麼？

Yes. I think, people will think I've got rocks in my head. But if you think back, Joel, when we got to -- in my prior life, we got to 10% to 15% margins, we've said now we're going to 20%. We can get to 20% in 5 years, and we need, though, meaningful aftermarket contribution to get to that type of EBITDA margins. And that's how you do it. I mean, we will continue to get good at building product, and we will get above 10% EBITDA margins and when we get there, our next target will be 20%. But we can't get to 20% until we get some real good meaningful traction in the aftermarket area. And as you know, we're spending a lot of money there, because I believe in it, and I think we can do it.

是的。我想，人們會認為我腦子裡有石頭。但喬爾，如果你回想一下，當我們在前世時，我們的利潤率是 10% 到 15%，我們說過現在要達到 20%。我們可以在 5 年內達到 20%，但我們需要有意義的售後市場貢獻才能達到這種類型的 EBITDA 利潤率。這就是你要做的。我的意思是，我們將繼續擅長打造產品，我們將獲得 10% 以上的 EBITDA 利潤率，當我們實現這一目標時，我們的下一個目標將是 20%。但除非我們在售後市場領域獲得一些真正有意義的牽引力，否則我們無法達到 20%。正如你所知，我們在那裡花了很多錢，因為我相信它，而且我認為我們可以做到。

So aftermarket needs to be, what, like 15% of the mix? Is that what you're thinking?

那麼售後市場需要佔混合比例的 15%？你是這麼想的嗎？

Yes. Yes, if not more. I mean, it could be -- if you look at the total universe, we get up there and we don't even talk about service. But we know we have $800 million worth of parts purchased for our vehicles every year. $300 million of that is chassis parts. It's really being able to break the purchasing paradigm. And people say, well that's hard to do. It is hard to do. It's not easy. But parts is pretty basic. You get parts at people's fingertips at reasonable prices, and you service them really, really well. You can break the paradigms though and they'll buy from you. Plus, we also have the other advantage of working through dealers and telling the dealer that they need to be buying their parts from us, which -- so, there's some leverage there. But yes, it's -- it could be as high as 15% to 20% of revenue.

是的。是的，如果不是更多的話。我的意思是，如果你放眼整個宇宙，我們可能甚至不談論服務。但我們知道，我們每年為車輛購買價值 8 億美元的零件。其中 3 億美元是底盤零件。它確實能夠打破購買範式。人們說，這很難做到。這很難做到。這並不容易。但零件非常基礎。您可以以合理的價格獲得人們觸手可及的零件，並為他們提供非常非常好的服務。不過，你可以打破範式，他們就會向你購買。另外，我們還有另一個優勢，即與經銷商合作並告訴經銷商他們需要從我們這裡購買零件，因此，這裡有一些槓桿作用。但是，是的，它可能高達收入的 15% 到 20%。

And then just a clarification, and then one more question after that. I didn't know if you gave us a free cash flow guide for 2018. And also, I just want to make sure that your guidance doesn't -- it doesn't yet include the -- whatever we get on tax reform.

然後只是澄清一下，然後再問一個問題。我不知道你是否給了我們 2018 年自由現金流指南 而且，我只是想確保你的指南不會——它還不包括——無論我們在稅收改革中得到什麼。

Yes, we haven't yet. We'll give you something here.

是的，我們還沒有。我們會給你一些東西。

Yes. As I said in my remarks, we're going to -- we're forecasting positive free cash flow, even with the levels of CapEx we disclosed, we're forecasting before tax reform to be in $40 million positive free cash flow range. So Nicole gave you some numbers regarding cash taxes, which I think, she quoted $15 million benefit next year. That's what we're targeting.

是的。正如我在發言中所說，我們將預測正自由現金流，即使我們披露了資本支出水平，我們預測在稅制改革之前，正自由現金流將在 4000 萬美元的範圍內。妮可給了你一些關於現金稅的數字，我認為她引用了明年 1500 萬美元的福利。這就是我們的目標。

(Operator Instructions) Our next question is a follow-up question from Mig Dobre with Robert W. Baird.

（操作員說明）我們的下一個問題是 Mig Dobre 和 Robert W. Baird 提出的後續問題。

Just a couple of clarifications. First is on the D&A guidance. You guided last quarter for $34.5 million. You came out to $37.8 million. I'm wondering what the variance was here in just 1 quarter. And related to this, when I'm looking at next year's guidance, when I'm looking at fiscal '18, $40 million to $43 million, can you break out the amortization component out of that? Because that's what gets added back into adjusted EPS.

只是一些澄清。首先是 D&A 指南。您上季度的指導收入為 3,450 萬美元。您的獎金為 3,780 萬美元。我想知道僅僅一個季度的差異是多少。與此相關的是，當我查看明年的指導時，當我查看 18 財年的 4000 萬至 4300 萬美元時，您能從中分解出攤銷部分嗎？因為這就是重新加入調整後每股盈餘中的內容。

Yes. Two things. One is, as we complete our acquisitions making -- particularly the ones that we made in the middle of the year, Ferrara and Midwest. We've settled in on what the intangible assets are, related to those acquisitions, you never know what those are going to settle in on because there's third-party evaluations there done, but the story for the increase in D&A is really amortization related intangibles that we acquired. As we've closed out the year and recorded those purchase accounting adjustments, so to speak, or balance sheets. Looking at next year, we've -- we were forecasting it from an amortization perspective, about $4 million -- a little over $4 million a quarter for amortization expense.

是的。有兩件事。一是，當我們完成收購時——尤其是我們在年中進行的收購，費拉拉和中西部。我們已經確定了與這些收購相關的無形資產是什麼，你永遠不知道這些無形資產將會確定什麼，因為已經進行了第三方評估，但 D&A 增加的故事實際上是與攤銷相關的無形資產我們獲得的。當我們結束這一年並記錄這些購買會計調整時，可以說，或資產負債表。展望明年，我們從攤銷角度預測，每季攤銷費用約 400 萬美元，略高於 400 萬美元。

Okay, that's helpful. And then lastly, back to Fire & Emergency. You talked about the business being flattish, but I guess when I'm looking at your implied orders, I'm sort of drawing a different conclusion. Correct me if I'm wrong, but it looks to me like your implied orders were up 31% year-over-year in the fourth quarter. Some of that was acquisitions, but even backing the acquisitions out, it seems like you're orders here were up on a quarter basis, something like 15%. So correct me if these stats are wrong, but it looks to me like order growth here has been quite good, right?

好的，這很有幫助。最後，回到消防與緊急狀況。您談到業務平淡，但我想當我查看您的隱含訂單時，我得出了不同的結論。如果我錯了，請糾正我，但在我看來，你們第四季的隱含訂單年增了 31%。其中一些是收購，但即使支持收購，這裡的訂單似乎也按季度增長，大約 15%。如果這些統計數據有誤，請糾正我，但在我看來，這裡的訂單增長相當不錯，對吧？

Yes. We don't -- the industry has been a little bit flat year-over-year, Mig, but we are taking share. We don't like to advertise that fact, but we're taking share.

是的。我們不認為——米格，這個行業與去年同期相比有點平淡，但我們正在搶佔份額。我們不想宣傳這一事實，但我們正在分享份額。

I would like to turn the conference back over to Tim Sullivan for closing remarks.

我想將會議轉回蒂姆·沙利文致閉幕詞。

Thanks, everybody for joining us today. I can only reiterate how pleased we are with the 2017 performance. When I think back, I've been here for 3 years, and when I joined 3 years ago to manage the assets that have been pulled together, the 14 different assets that have been pulled together by our P/E sponsor and put under the umbrella, at that time, called ASV. We made $50 million the year I came in. And to see where we are at today, after being REV for only 2 years, that's -- it's very encouraging. It's very encouraging for us, as a management team to see the fruits of our labor, I guess, as we go forward. So great '17, looking forward to another really strong '18. And I think obviously, beyond that as we start to see some of these new initiatives take hold in the marketplace.

謝謝大家今天加入我們。我只能重申我們對 2017 年的表現感到非常滿意。回想起來，我已經在這裡工作了 3 年，3 年前我加入來管理已整合的資產時，我們的市盈率贊助商已將 14 種不同的資產整合到一起並置於傘，當時叫ASV。我加入的那一年，我們賺了 5000 萬美元。我想，作為一個管理團隊，隨著我們的前進，看到我們的勞動成果，這對我們來說是非常鼓舞人心的。如此偉大的 17 年，期待另一個真正強大的 18 年。我認為顯然，除此之外，我們開始看到其中一些新措施在市場上紮根。

All of you should have received, and this is investors and analysts, all of you should have received an invitation from Sandy about our upcoming Investor Day in Orlando, Florida on January 16. I think you should really make an effort to be there. It's something that will -- I think, you will not be disappointed. We'll have over 50 of our products on display. Every single thing we make and probably a couple of everything we make will be on display down there. We have over 1,000 dealers and customers signed up to attend. We will have a section, obviously, or a session with all of you to allow you to take a deeper dive with us into our overall strategy. I'll give you a lot more color around some of our initiatives and some of our product offerings. We'll have some of our new products from the Commercial segment there. We'll have some of our sneak preview of our 2019 RVs. It's going to be an annual event that we're going to do. And if you can get there, I think it's a good thing. January 16.

你們所有人都應該收到了，這是投資者和分析師，你們所有人都應該收到了桑迪發出的關於我們即將於1 月16 日在佛羅裡達州奧蘭多舉行的投資者日的邀請。真的應該努力去參加。我想，你不會失望的。我們將展出 50 多種產品。我們製作的每一件東西，可能還有我們製作的一些東西，都會在那裡展出。我們有超過 1,000 名經銷商和客戶報名參加。顯然，我們將與大家一起舉辦一個部分或一次會議，以便您與我們一起更深入地了解我們的整體策略。我將為您提供有關我們的一些舉措和一些產品的更多資訊。我們將在那裡展示一些來自商業領域的新產品。我們將對 2019 年房車進行一些搶先預覽。這將是我們要做的年度活動。如果你能到達那裡，我認為這是一件好事。 1 月 16 日。

Also, if you can get there the night before, we're having an event at the House of Blues with Chicago, entertaining our 1,000 customers and dealers, we'd love to have you participate in an informal atmosphere with us and our customers as well. So mark your calendars, if you can. I think it'll be well worth your while.

此外，如果您能在前一天晚上到達那裡，我們將與芝加哥一起在House of Blues 舉辦一場活動，招待我們的1,000 名客戶和經銷商，我們希望您能夠在非正式的氛圍中與我們和我們的客戶一起參與出色地。因此，如果可以的話，標記您的日曆。我認為這會非常值得你花時間。

So let me close, Merry Christmas. Happy Hanukkah. Happy Kwanzaa. Happy Festivus. Happy New Year. See you guys in January, or we'll be on the call again in March.

那麼就讓我結束吧，聖誕快樂。光明節快樂。寬扎節快樂。節日快樂。新年快樂。一月見，或者我們會在三月再次打電話。

Thank you. This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。