REV Group Inc (REVG) 2024 Q3 法說會逐字稿

Greetings. Welcome to REV Group's third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

問候。歡迎參加 REV 集團 2024 年第三季財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

I will now turn the conference over to your host, Drew Konop. Thank you. You may begin.

現在我將會議交給主持人德魯·科諾普 (Drew Konop)。謝謝。你可以開始了。

Good morning, and thanks for joining us. Earlier today, we issued our third-quarter fiscal 2024 results. A copy of the release is available on our website at investors.revgroup.com. Today's call is being webcast and a slide presentation, which includes a reconciliation of non-GAAP to GAAP financial measures, is available on our website. Please refer now to slide 2 of that presentation.

早安，感謝您加入我們。今天早些時候，我們發布了 2024 財年第三季業績。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，我們的網站上提供了幻燈片演示，其中包括非 GAAP 與 GAAP 財務指標的調整表。現在請參閱該簡報的幻燈片 2。

Our remarks and answers will include forward-looking statements, which are subject to risk that could cause the actual results to differ from those expressed or implied by such forward-looking statements. These risks include, among others, matters that we've described in our Form 8-K filed with the SEC earlier today and other filings we made 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 the call today are to a quarter or a year or our fiscal quarter or fiscal year unless otherwise stated.

我們的評論和回答將包括前瞻性陳述，這些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不同的風險。這些風險包括我們在今天早些時候向 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等。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，否則今天電話會議上的所有參考內容均指一個季度或一年或我們的財務季度或財政年度。

Joining me on the call today is our President and CEO, Mark Skonieczny as well as our CFO, Amy Campbell. Please turn to slide 3, and I'll turn the call over to Mark.

今天與我一起參加電話會議的是我們的總裁兼執行長 Mark Skonieczny 以及我們的財務長 Amy Campbell。請翻到投影片 3，我會將電話轉給馬克。

Thank you, Drew, and good morning to everyone joining us on today's call. Today, I'll provide an overview of the operating, commercial, and financial highlights achieved within the quarter then move to the quarter's consolidated financial performance. We are pleased to have delivered another strong quarter of operating results that reflect continued success and execution of our strategies to improve the performance of our municipal backlog businesses, while managing the impact of a challenging environment in our cyclical businesses.

謝謝你，德魯，祝所有參加今天電話會議的人早安。今天，我將概述本季實現的營運、商業和財務亮點，然後轉向本季的綜合財務表現。我們很高興再次實現強勁的季度經營業績，這反映出我們在提高市政積壓業務績效的策略上的持續成功和執行，同時管理週期性業務中充滿挑戰的環境的影響。

Double-digit margin performance has been the target for each of our businesses since I arrived in 2020 and I applaud the various teams that contributed to the Specialty Vehicles segment achieving an adjusted EBITDA margin of 10.3% in the third quarter. Within the quarter, our ambulance business continued to benefit from momentum, it has built over the past several quarters with programs designed to increase line rates and improve efficiencies.

自 2020 年上任以來，兩位數的利潤率業績一直是我們每項業務的目標，我對為特種車輛領域做出貢獻的各個團隊表示讚賞，第三季度調整後 EBITDA 利潤率達到 10.3%。在本季度內，我們的救護車業務繼續受益於過去幾個季度旨在提高線路率和提高效率的計劃的發展勢頭。

The fire group is on a similar journey to drive operational improvements and their efforts led to the specialty vehicle sequential adjusted EBITDA increase for the quarter. Fire continues to pursue a strategy of simplification along with the development of manufacturing centers of excellence designed to eliminate waste, increase throughput and generate operating efficiencies. As we discussed last quarter, we have leveraged Spartan Chassis production from our Center of Excellence in Michigan across our network of fire plants and brands to drive efficiency and cost effectiveness.

消防小組也在推動營運改善方面經歷了類似的歷程，他們的努力導致了本季特種車輛連續調整後的 EBITDA 成長。 Fire 持續奉行簡化策略，同時開發卓越的製造中心，旨在消除浪費、提高產量並提高營運效率。正如我們上季度所討論的，我們在消防工廠和品牌網路中利用了密西根卓越中心的斯巴達底盤生產來提高效率和成本效益。

In addition, we have dedicated line at our Spartan Emergency Response facility in South Dakota to produce our S-180 fire apparatus, which has enabled our brands to deliver semi-custom fire apparatus at accelerated lead times. Furthermore, the integration of sales, inventory and operations planning or SIOP across the group has resulted in a dual benefit contributing to improved throughput as well as a year-over-year reduction of Fire Division's inventory balances. Ongoing efforts to create greater alignment between the fire group's resources and manufacturing footprint in addition to these improvements to our upfront processes have resulted in improved completions of trucks.

此外，我們在南達科他州的斯巴達緊急應變設施擁有專用生產線來生產 S-180 消防設備，這使我們的品牌能夠以更快的交貨時間提供半客製化消防設備。此外，整個集團銷售、庫存和營運規劃（SIOP）的整合帶來了雙重效益，有助於提高吞吐量，並逐年減少消防部門的庫存餘額。除了對前期流程的這些改進之外，我們還不斷努力在消防小組的資源和製造足跡之間建立更大的一致性，從而提高了卡車的完工率。

As I've stated in the past, each unit we ship today is worth more than the unit shipped yesterday. Increased line rates have contributed to greater profitability throughout the year as we gain efficiencies and reduce the number of aged units from backlog. We exited the quarter with a robust $4.4 billion consolidated backlog led by the strength of inbound orders for fire and emergency vehicles. Specialty Vehicles segment backlog of $4.1 billion increased $386 million or 10% as compared to last year. The prior year's backlog of $3.7 billion included $421 million of backlog attributed to the bus businesses. Adjusting for the divestiture of Collins and wind down of ENC, which had largely exhausted its backlog exiting the third quarter, segment backlog increased $807 million or 27% versus the prior year quarter.

正如我過去所說，我們今天發貨的每件商品都比昨天發貨的商品價值更高。隨著我們提高效率並減少積壓的老化設備數量，提高的生產線利用率有助於提高全年的獲利能力。在消防和緊急車輛入庫訂單強勁的帶動下，我們在本季結束時帶來了 44 億美元的強勁綜合積壓訂單。特種車輛部門積壓訂單為 41 億美元，比去年增加 3.86 億美元，成長 10%。上一年的積壓訂單為 37 億美元，其中 4.21 億美元的積壓訂單歸因於巴士業務。考慮到柯林斯的剝離和 ENC 的逐步結束（第三季度已基本耗盡積壓訂單），該部門的積壓訂單與去年同期相比增加了 8.07 億美元，即 27%。

Year-to-date, the combined book-to-bill of the F&E businesses was 1x on a unit basis driven by both increased shipments and a normalization of demand. This is in line with the guidance we provided in December for fiscal 2024. The benefits of our pricing strategy delivered a book-to-bill ratio of 1.3 times on a revenue basis in the legacy fire and emergency businesses during the same period. The duration of backlog varies by business and the specific unit type, but generally remains in the range of two to three years. The backlog is elevated versus historical norms, but is in line with our industry peers, given the current demand environment.

今年迄今為止，在出貨量增加和需求正常化的推動下，F&E 業務的總訂單出貨比按單位計算為 1 倍。這與我們在 12 月提供的 2024 財年指引一致。積壓的持續時間因業務和具體單位類型而異，但通常保持在兩到三年的範圍內。與歷史正常水平相比，積壓訂單有所增加，但考慮到當前的需求環境，與我們的行業同行一致。

Prior to 2020, the typical delivery time for our pumper unit was approximately 9 months to 12 months, while an aerial ladder truck would be approximately 12 months to 15 months. The ambulance group had historically operated with less visibility and backlog of three months to six months. It remains our expectation that industry demand will continue to normalize, which combined with our successful increase in line rates is expected to deliver a more balanced supply and demand dynamic, as we focus to achieve best-in-class delivery times. The recreational vehicle end market remains challenged, as discretionary purchases for such items as RVs have been delayed by consumers.

2020 年之前，我們的抽油機的典型交貨時間約為 9 個月至 12 個月，而雲梯車的典型交付時間約為 12 個月至 15 個月。救護車小組歷來運作可見度較低，積壓了三個月到六個月的時間。我們仍然期望行業需求將繼續正常化，再加上我們成功提高線路費率，預計將帶來更平衡的供需動態，因為我們致力於實現一流的交付時間。休閒車終端市場仍然面臨挑戰，因為消費者推遲了對房車等物品的隨意購買。

According to SSI data, industry-wide retail sales of Class A, Class B, and Class C units declined 15%, 20% and 4% respectively over the trailing 12 months ended in June versus the prior year period. Despite these challenges, the data shows that retail sales of our motorized brands have outpaced the industry across these categories over the same period. We are looking forward to showcasing the quality innovation of our model year 2025 units at the Hershey RV show and Elkhart Open House in September. The both shows provide insight into customer and dealer sentiment and the interactions and feedback are expected to provide an early read on calendar year 2025 demand.

根據SSI數據，截至6月份的過去12個月，全行業A級、B級和C級單位零售額與去年同期相比分別下降了15%、20%和4%。儘管面臨這些挑戰，但數據顯示，同期我們的機動品牌零售額在這些類別中均超過了行業。我們期待在 9 月的好時房車展和埃爾克哈特開放日上展示我們 2025 年車型的品質創新。這兩個節目都提供了對客戶和經銷商情緒的深入了解，互動和回饋預計將提供 2025 年需求的早期解讀。

After September, the next big indication of activity will be in January at the Tampa RV show which historically sets the pace for the year's retail demand. Until we gain greater clarity on end market demand, we will continue to work closely with our dealers to focus on production of units that aligned with consumer preferences, while we aggressively address our cost structure.

9 月之後，下一個重大活動跡象將是 1 月的坦帕房車展，該展歷來決定了當年零售需求的節奏。在我們更清楚地了解終端市場需求之前，我們將繼續與經銷商密切合作，專注於生產符合消費者偏好的產品，同時積極解決我們的成本結構問題。

I would like to acknowledge the hard work of the RV segment team, which has continued to work tirelessly to navigate the market challenges and manage costs, resulting in decremental margins of 14% year-over-year. The wind down of production at our ENC municipal transit bus business in Riverside, California is progressing ahead of schedule with the last units expected to be completed within the fourth quarter.

我要感謝房車細分市場團隊的辛勤工作，他們繼續不懈地努力應對市場挑戰並管理成本，導致利潤率年減 14%。我們位於加州里弗賽德的 ENC 市政交通巴士業務的停產工作正在提前進行，最後一批機組預計將在第四季度內完成。

I would like to thank all our dedicated employees as well as our suppliers and channel partners that have made the difficult process and operational success by delivering quality buses to our customers, while exceeding the expected timeline. With the completion of the final units, we expect to realize the remaining net working capital benefit within the fourth quarter and we'll proceed with the sale of ENC assets when the wind down is complete.

我要感謝我們所有敬業的員工以及我們的供應商和通路合作夥伴，他們透過向我們的客戶提供優質巴士，同時超出了預期的時間，取得了艱難的過程和營運成功。隨著最終單位的竣工，我們預計將在第四季度內實現剩餘的淨營運資本效益，並且我們將在結束時繼續出售 ENC 資產。

Our balance sheet and financial position continued to strengthen during the quarter. Exiting in the third quarter, net debt was $165 million and our net debt to trailing 12 month adjusted EBITDA ratio was just below 1x leverage. Exiting in the year we expect to maintain leverage less than 1x. Over the years, we have been disciplined and nimble in our capital allocation philosophy using our available capital to invest back in the business, pay down debt, buy back shares and pay both regular and special dividends. We have regular and ongoing discussions regarding our go forward capital allocation priorities and we'll communicate an updated capital allocation strategy, when we share our intermediate financial targets later this year.

本季我們的資產負債表和財務狀況持續加強。第三季退出時，淨負債為 1.65 億美元，我們的淨負債與過去 12 個月調整後 EBITDA 的比率略低於 1 倍槓桿。我們預計今年退出時槓桿率將維持在 1 倍以下。多年來，我們的資本配置理念一直嚴格且靈活，利用我們的可用資本投資於業務、償還債務、回購股票以及支付定期股息和特別股息。我們就未來的資本配置優先事項進行定期和持續的討論，當我們在今年稍後分享我們的中期財務目標時，我們將傳達更新的資本配置策略。

Turning to slide 4, consolidated net sales of $579 million decreased $101 million compared to third quarter of last year. In the prior year, reported sales included $46 million attributable to Collins Bus, which was divested in the first quarter of this year. Adjusting for the sales impact of Collins, net sales decreased $55 million or 8.6% due to lower sales in the recreational vehicle segment and fewer sales of terminal trucks partially offset by increased sales in the fire, emergency and municipal transit bus businesses.

轉向幻燈片 4，綜合淨銷售額為 5.79 億美元，與去年第三季相比減少了 1.01 億美元。去年報告的銷售額包括歸屬於 Collins Bus 的 4,600 萬美元，該公司於今年第一季被剝離。在調整柯林斯的銷售影響後，淨銷售額下降5500 萬美元，即8.6%，原因是休閒車細分市場銷量下降以及碼頭卡車銷量減少，但消防、應急和市政交通巴士業務銷量增加部分抵消了這一影響。

Consolidated adjusted EBITDA of $45.2 million, increased $5.8 million compared to the third quarter of last year. Included in the prior year reported adjusted EBITDA was $9.2 million attributable to Collins Bus resulting in an increase of $15 million or 49.7% when adjusting for the divestiture. The increase was driven by the fire, emergency and municipal transit bus businesses, partially offset by lower earnings in the terminal trucks business and recreational vehicle segment. Fire and emergency results benefit from higher volumes, the operational improvements mentioned earlier and price realization. The Fire and emergency results demonstrate the team's success in offsetting the increased cost of doing business through operational improvements allowing the businesses to maximize the pricing opportunity within backlog.

合併調整後 EBITDA 為 4,520 萬美元，比去年第三季增加 580 萬美元。上一年度報告的調整後 EBITDA 中包括歸屬於 Collins Bus 的 920 萬美元，根據資產剝離進行調整後，增加了 1500 萬美元，即 49.7%。這一增長是由消防、緊急和市政交通巴士業務推動的，但部分被碼頭卡車業務和休閒車業務的收入下降所抵消。火災和緊急情況的結果受益於產量的增加、前面提到的營運改善和價格實現。火災和緊急情況的結果表明，該團隊成功地透過營運改善抵消了增加的業務成本，使企業能夠在積壓訂單中最大限度地利用定價機會。

Please turn to slide 5 and I'll turn the call over to Amy for detailed segment financials.

請翻到投影片 5，我會將電話轉給艾米，以了解詳細的部門財務狀況。

Thank you, Mark. Specialty vehicles third quarter segment sales were $432 million, a decrease of $34 million compared to the prior year. As Mark mentioned, the prior year quarter included $46 million of net sales attributed to Collins Bus. Excluding the impact of the Collins divestiture, net sales increased $12 million or 2.8% compared to the prior year quarter. The increase in net sales was primarily due to price realization and increased shipments of fire apparatus, ambulance units and municipal transit buses partially offset by lower shipments of terminal trucks. The legacy fire and emergency businesses delivered year-over-year increases in unit shipments and revenue from both the fire and ambulance groups.

謝謝你，馬克。專用車第三季銷售額為 4.32 億美元，比上年同期減少 3,400 萬美元。正如 Mark 所提到的，去年同期的淨銷售額為 Collins Bus 的 4,600 萬美元。排除柯林斯資產剝離的影響，淨銷售額較上年同期成長 1,200 萬美元，即 2.8%。淨銷售額的成長主要是由於價格實現以及消防設備、救護車和市政公車的出貨量增加，但部分被碼頭卡車出貨量的減少所抵消。傳統的消防和緊急業務使消防和救護車部門的單位出貨量和收入同比增長。

Unit starts, completions, and shipments remain at or near historic highs which has reduced the number of aged units and improved the overall mix of the backlog. Terminal truck sales were lower than the previous year which was consistent with the expectation provided and our update to full year guidance shared during the second quarter call. The fourth quarter is expected to be the last quarter of difficult year-over-year comparisons for the terminal truck business and accordingly we don't anticipate singling out its performance after we exit this fiscal year.

單位開工、竣工和發貨量保持在或接近歷史高位，這減少了老化單位的數量並改善了積壓的整體結構。碼頭卡車銷量低於上年，這與我們提供的預期以及我們在第二季度電話會議上分享的全年指導更新一致。預計第四季度將是碼頭卡車業務難以進行同比比較的最後一個季度，因此，我們預計在本財年結束後不會特別關注其業績。

Specialty vehicles segment adjusted EBITDA was $44.3 million in the third quarter of 2024, an increase of $14.6 million compared to $29.7 million in the third quarter of 2023. Adjusting for $9.2 million of adjusted EBITDA attributed to Collins Bus in the prior year, third quarter earnings increased $23.8 million year-over-year or 116%. The increase in adjusted EBITDA was primarily due to increased performance in the fire, ambulance and municipal transit bus businesses partially offset by lower adjusted EBITDA from the terminal trucks business.

2024 年第三季特種車輛部門調整後EBITDA 為4,430 萬美元，比2023 年第三季的2,970 萬美元增加了1,460 萬美元。季度收益較去年同期增加 2,380 萬美元，即 116%。調整後 EBITDA 的成長主要是由於消防、救護車和市政交通巴士業務業績的增長，但部分被碼頭卡車業務調整後 EBITDA 的下降所抵消。

Higher, fire and emergency contribution was driven by increased unit shipments versus the prior year and greater price realization. Improved municipal transit bus contribution versus the prior year was primarily related to favorable mix, price realization and lower labor and operating expenses as the wind down progressed ahead of schedule. Lower terminal truck contribution was related to soft industry demand.

火災和緊急狀況貢獻增加是由於單位出貨量較上年增加以及價格實現增加所致。與前一年相比，城市公車巴士貢獻的改善主要與有利的組合、價格實現以及隨著提前結束而降低的勞動力和營運費用有關。碼頭卡車貢獻較低與產業需求疲軟有關。

Today's update to the consolidated outlook anticipates continued fire and emergency sales and earnings momentum, partially offset by continued end market softness in the terminal trucks business and as mentioned earlier, the shipment of the final ENC buses within the fourth quarter. We expect the momentum in F&E to result in modest sequential revenue growth and a slightly higher specialty vehicles margin, as we exit the year.

今天對綜合展望的更新預計火災和緊急銷售和盈利勢頭將持續，但部分被碼頭卡車業務的終端市場持續疲軟以及如前所述第四季度最終 ENC 巴士的發貨所抵消。我們預計，隨著今年的結束，F&E 的勢頭將帶來適度的環比收入增長和特種車輛利潤率的小幅提高。

On slide 6, recreational vehicle segment net sales of $147.4 million, decreased $67.1 million or 31% year-over-year. The sales decline is primarily the result of lower unit shipments in all categories versus the prior year as well as increased discounting and an unfavorable mix of lower priced units within certain businesses. Sales within the quarter were lower than our expectations, as dealers remain hesitant to replenish inventory and have deferred the delivery of model year 2025 orders in certain categories.

在投影片 6 中，休閒車細分市場的淨銷售額為 1.474 億美元，年減 6,710 萬美元，即 31%。銷售額下降的主要原因是所有類別的單位出貨量較上年下降，以及折扣增加以及某些業務中較低價格單位的不利組合。本季銷售額低於我們的預期，因為經銷商對於補充庫存仍猶豫不決，並推遲了某些類別 2025 年車型訂單的交付。

Recreation segment adjusted EBITDA was $9.4 million, decreased $9 million or 49% versus the prior year. The decrease in adjusted EBITDA was primarily the result of lower unit volume, inflationary pressures and increased discounting, partially offset by cost reductions that were executed to align fixed and variable costs with the current level of demand. The decremental margin on lots sales of 14% year over year and 9% sequentially, demonstrates the RV team's efforts to aggressively contain costs and manage through this difficult period of customer demand.

娛樂部門調整後 EBITDA 為 940 萬美元，較前一年減少 900 萬美元，即 49%。調整後 EBITDA 的下降主要是由於單位銷售下降、通膨壓力和折扣增加造成的，但部分被為使固定和可變成本與當前需求水準保持一致而實施的成本削減所抵消。批量銷售利潤率同比下降 14%，環比下降 9%，這表明 RV 團隊為積極控製成本並應對客戶需求的困難時期所做的努力。

Recreation segment backlog of $240 million at quarter end decreased $168 million or 41% versus the prior year. The decrease is primarily due to reduction against backlog, lower order intake and order cancellations over the trailing 12 months. Some dealers, as I mentioned earlier, opted to defer delivery of orders within the backlog. However, we are encouraged by the improved health of our dealer inventory, which has declined 20% since the beginning of the calendar year, as retail sales outpaced our wholesale shipments. Given the current level of retail demand, dealer reluctance to restock channel inventory and uncertainty surrounding interest rates, we expect fourth quarter sales, earnings and margin to be sequentially about flat.

截至季末，娛樂部門積壓金額為 2.4 億美元，與去年同期相比減少了 1.68 億美元，即 41%。下降的主要原因是過去 12 個月積壓訂單減少、訂單量減少和訂單取消量減少。正如我之前提到的，一些經銷商選擇推遲積壓訂單的交付。然而，我們對經銷商庫存健康狀況的改善感到鼓舞，自年初以來經銷商庫存已下降 20%，因為零售銷售超過了批發出貨量。考慮到當前零售需求水準、經銷商不願補充通路庫存以及利率的不確定性，我們預期第四季銷售額、獲利和利潤率將持平。

Turning to Slide 7, trade working capital on July 31 was $323 million, an increase of $4 million compared to $319 million at the end of fiscal 2023. The increase was primarily a result of lower customer advances and lower accounts payable, partially offset by a decrease in accounts receivable and inventory. As anticipated customer advances have declined year to date as units are shipped from the backlog and consuming deposits previously received, while incoming deposits have slowed in today's higher interest rate environment. However, for the full year, we expect inventory reductions to offset customer deposit reductions, largely driven by shipments from finished goods in the fourth quarter.

轉向投影片 7，7 月 31 日的貿易營運資本為 3.23 億美元，比 2023 財年末的 3.19 億美元增加了 400 萬美元。帳款和存貨減少。由於預期的客戶預付款今年迄今已下降，因為單位已從積壓訂單中發貨並消耗了先前收到的存款，而在當今利率較高的環境下，存款流入已放緩。然而，就全年而言，我們預計庫存減少將抵消客戶押金減少的影響，這主要是由第四季度製成品出貨量推動的。

Year-to-date cash used by operating activities was $15.2 million, adjusted free cash flow within the quarter was $29.5 million, including $5.9 million spent on capital expenditures. Year-to-date adjusted free cash flow was $16.5 million, which excludes approximately $54 million of tax and transaction costs related to divestiture activities that are presented within cash from operations but offset by gross cash proceeds included in the investing section of the statement of cash flows.

年初至今，經營活動使用的現金為 1,520 萬美元，本季調整後的自由現金流為 2,950 萬美元，其中資本支出支出為 590 萬美元。年初至今調整後的自由現金流為1,650 萬美元，其中不包括與剝離活動相關的約5,400 萬美元的稅收和交易成本，這些費用在營運現金中列報，但被現金報表投資部分中包含的現金收益總額所抵消流動。

Net debt as of July 31 was $164.5 million, including $50.5 million of cash on hand compared to net debt of $128.7 million as of October 31, 2023. We declared a regular quarterly cash dividend of $0.05 per share payable on October 11 to shareholders of record on September 27. At quarter's end, the company maintained ample liquidity for strategic initiatives with approximately $262 million available under our ABL revolving credit facility.

截至7 月31 日的淨債務為1.645 億美元，包括手頭現金5050 萬美元，而截至2023 年10 月31 日的淨債務為1.287 億美元。我們宣佈於10 月11 日向登記股東支付每股0.05 美元的定期季度現金股利9 月 27 日。

Turning to Slide 8, we provide our updated 2024 fiscal full year outlook which builds upon the momentum within the specialty vehicle segment, partially offset by continued end market weakness in the recreational vehicle segment. Today's update for top line guidance is a range of $2.35 billion to $2.45 billion. Adjusted EBITDA guidance is $155 million to $165 million or $160 million at the midpoint, which reflects an improvement of $4 million at the low end of the range to account for the third quarter performance. The update to guidance today includes an approximate $50 million total revenue reduction related to softer than expected RV demand and resulting earnings impact as we continue to manage to 15% detrimental margin with aggressive cost actions. However, we expect that the lower RV performance will be more than offset by improvements in the fire and emergency businesses.

轉向幻燈片 8，我們提供了最新的 2024 財年展望，該展望建立在特種車細分市場的增長勢頭之上，但部分被休閒車細分市場終端市場的持續疲軟所抵消。今天更新的營收指引範圍為 23.5 億美元至 24.5 億美元。調整後的 EBITDA 指引為 1.55 億美元至 1.65 億美元，中間值為 1.6 億美元，反映了第三季業績在該範圍低端增加了 400 萬美元。今天的指導更新包括約 5000 萬美元的總收入減少，原因是房車需求低於預期，以及由此產生的盈利影響，因為我們繼續透過積極的成本行動來管理 15% 的不利利潤率。然而，我們預計房車性能的下降將被消防和緊急業務的改善所抵消。

Adjusted net income is expected to be in the range of $76 million to $89 million and net income in the range of $226 million to $240 million. Expectations for adjusted free cash flow, full year capital expenditures and interest expense remain the same with adjusted free cash flow in the range of $61 million to $72 million, full year capital expenditures in the range of $30 million to $35 million and interest expense expected to be $26 million to $28 million. Finally, as you may recall, we provided intermediate financial targets at our Investor Day in April of 2021. We will be providing updated intermediate financial targets and a refreshed capital allocation philosophy along with our fiscal 2025 outlook during our regular fiscal fourth quarter earnings call in December. We plan to extend the length of that call while opening the line to analysts and investors.

調整後淨利潤預計在 7,600 萬美元至 8,900 萬美元之間，淨利潤在 2.26 億美元至 2.4 億美元之間。調整後自由現金流、全年資本支出和利息支出的預期保持不變，調整後自由現金流在6100 萬美元至7200 萬美元之間，全年資本支出在3000 萬美元至3500 萬美元之間，利息支出預計為2600萬至2800萬美元。最後，您可能還記得，我們​​在2021 年4 月的投資者日提供了中期財務目標。財年展望。我們計劃延長電話會議的時間，同時向分析師和投資者開放熱線。

Consistent with our normal outreach, we will also be available for follow-up calls to address additional questions or clarifications. Thank you again for joining us on today's call.

與我們的正常外展活動一致，我們也將接受後續電話來解決其他問題或進行澄清。再次感謝您參加今天的電話會議。

Operator, we would now like to open the call up for questions.

接線員，我們現在要開始提問。

(Operator Instructions) Jerry Revich, Goldman Sachs.

（操作員指示）Jerry Revich，高盛。

Nice performance in specialty vehicles. Amy, I'm wondering if we could just unpack the fire and emergency portion of the performance. What was the bridge for the year-over-year margin improvement that you saw? How much was pricing? What did you see from inflation and productivity? Can you just unpack the margin bridge for F&E specifically, please?

在特種車輛中表現良好。艾米，我想知道我們是否可以解開表演的火災和緊急部分。您看到的利潤率是年比改善的橋樑是什麼？定價是多少？您從通貨膨脹和生產力中看到了什麼？您能專門打開 F&E 的邊緣橋嗎？

If you look at legacy F&E specifically, we saw revenue grow mid-teens -- low to mid-teens and about 60% of that revenue growth was price mix, about 40% of it was driven by volumes. In the quarter, I would say that we largely offset inflationary cost and saw -- we didn't specifically give EBITDA margins in the quarter, but saw pretty significant year-over-year EBITDA margin growth in the legacy F&E business and also saw little over 100 basis points in EBITDA margin growth from the second to the third quarter.

如果你具體看看傳統的 F&E，我們會發現營收成長了十幾歲左右，大約 60% 的營收成長是由價格組合推動的，大約 40% 是由銷量推動的。在本季度，我想說，我們在很大程度上抵消了通貨膨脹成本，並且看到——我們沒有具體給出本季度的EBITDA 利潤率，但看到傳統F&E 業務的EBITDA 利潤率同比增長相當顯著，而且也幾乎沒有看到成長。

And in terms of the comments that you folks provided on book-to-bill on units versus revenue, the 30% difference, can we feel back, how much of that 30% difference is content versus just pure price? In other words, what should we be thinking about as the potential higher cost of that content that you folks are seeing? Because I think there are two levers, right? One is absolute price and two I think you folks are driving a shift towards more custom, high-end of the range but please correct me, if I'm wrong on that.

就你們對按銷量與收入的預訂到賬單提供的評論而言，這 30% 的差異，我們能否回想一下，這 30% 的差異中有多少是內容與純價格的差異？換句話說，我們應該考慮你們所看到的內容的潛在更高成本是什麼？因為我認為有兩個槓桿，對嗎？一是絕對價格，二是我認為你們正在推動向更多客製化、高端產品的轉變，但如果我錯了，請糾正我。

Yes, Jerry, I don't know that I have the breakout. We talk about unit for legacy F&E, the unit book-to-bill at about 1x and the dollar book-to-bill at 1.3 times, with fire a little ahead and ambulance kind of going through more of a normalization period. Breaking out that 1.3 times in F&E between what's price and what's content, I'd say while we certainly do have a lot of custom units.

是的，傑瑞，我不知道我有突破。我們談論傳統 F&E 的單位，單位訂單出貨比約為 1 倍，美元訂單出貨比為 1.3 倍，火災即將發生，救護車正在經歷更多的正常化時期。我想說，雖然我們確實有很多客製化單位，但 F&E 的價格和內容之間的差距是 1.3 倍。

We're also introducing we talked quite a bit about Mark did again this morning the S-180 which is more of a semi-custom unit. And so, I mean, I guess what I would say is I don't have that 1.3 times book-to-bill in terms of revenue broken out between content and price.

我們還介紹了我們談論了很多關於 Mark 今天早上再次做的 S-180，它更像是一個半定制單元。所以，我的意思是，我想我想說的是，就內容和價格之間的收入而言，我沒有 1.3 倍的書籍出貨比。

And can I sneak in one last one on RV? Can you just give us an update in terms of absolute units of inventory versus prior peak and versus prior trough with the revenue reduction here? I guess what's our level of confidence that we've captured the move in inventories that we typically see?

我可以在房車上偷偷溜進最後一輛嗎？您能否向我們提供庫存絕對單位與先前高峰和先前低谷的最新情況以及收入減少的情況？我想我們對捕捉到我們通常看到的庫存變動的信心有多大？

Are you thinking specifically to dealer inventories, Jerry?

傑瑞，您是否專門考慮經銷商庫存？

Yes. Thank you, Amy. RV dealer inventories.

是的。謝謝你，艾米。房車經銷商庫存。

Yes, as we said the dealer inventory is down 20% from the calendar year. I think we're getting more closer to the pre-COVID type of levels that our inventory levels are feeling good about the health of that inventory, Jerry, it's just they've been reluctant to replace orders. So we're seeing a nice like we talked about retails are definitely outpacing wholesales in the current market.

是的，正如我們所說，經銷商庫存比歷年下降了 20%。我認為我們越來越接近新冠疫情前的水平，我們的庫存水平對庫存的健康狀況感覺良好，傑瑞，只是他們一直不願意更換訂單。因此，我們看到像我們談到的那樣，當前市場上的零售業肯定超過了批發業。

And so it's a matter of just that's why we highlighted a couple of shows we're anxious to see what the consumer appetite is and then coming out of those what the dealer placements would be in the last couple of months dealers have been waiting. So the retailers are showing nicely, but wholesales have been down and we've been doing shutdowns as we talked about in the prepared calls to manage our costs there. So it's really a wait and see in September once it shows.

因此，這就是為什麼我們強調了幾個節目，我們急於了解消費者的興趣是什麼，然後從這些節目中得出經銷商在過去幾個月裡一直在等待的經銷商安排。因此，零售商表現良好，但批發量一直在下降，我們一直在關閉，正如我們在準備好的電話會議中談到的那樣，以管理我們的成本。因此，一旦九月上映，就真的需要觀望了。

Angel Castillo, Morgan Stanley.

安吉爾‧卡斯蒂略，摩根士丹利。

I was hoping we could expand a little bit more on the margin conversation, particularly as we look forward. I think you noted, particularly within specialty vehicles, you expect slightly higher margins. Can you just put a finer point on kind of the cadence and maybe quantify how much of margin expansion you anticipate here in the next quarter? And as we think about maybe the early days of fiscal year '25, I understand you're not going to give an outlook at this point but just any kind of sense based on what you have in your backlog, what is kind of implied in terms of margin expansion for the next few quarters?

我希望我們能夠在保證金對話上進行更多的討論，特別是在我們展望未來的時候。我想您已經注意到，特別是在特種車輛領域，您期望利潤率略高。您能否更詳細地說明節奏，並量化您預計下個季度的利潤率擴張程度？當我們考慮可能是 25 財年的初期時，我知道您此時不會給出展望，而是根據您的積壓工作中的情況給出任何感覺，其中隱含著什麼未來幾個季度的利潤率擴張如何？

So, I think if you look at the third to fourth quarter sequentially and I referenced we expect to see moderate revenue and EBITDA growth in terms of EBITDA dollars. I think of that in terms of kind of low single-digit type of growth and with EBITDA margin percent up just slightly. And where we would expect so that's what's in the double-digit margins for specialty vehicles exiting 2024, our expectation is that we would continue that trend as we move into and hold those double-digit margins in 2025.

因此，我認為，如果你按順序查看第三季度至第四季度，我提到，我們預計收入和 EBITDA（以 EBITDA 美元計）將出現溫和增長。我認為這是一種低個位數的成長，並且 EBITDA 利潤率略有上升。我們預計，這就是 2024 年特種車輛的兩位數利潤率，我們的預期是，當我們進入並在 2025 年保持這些兩位數利潤率時，我們將繼續這一趨勢。

And I guess maybe I would add as we look into 2025 what we've talked about in terms of pricing and we talked about the nine innings of the game, we're in kind of Tier 4 or 5 for fire and Tier 5 or 6 for ambulance and those are kind of mid-single-digit types of pricing increases as we move from tier to tier. And so that kind of 6% to 7% price increase on our value added content next year is what we would be thinking about and we're not giving 2025 guidance at this time, but certainly be looking to offset some of our inflationary headwinds as we move into 2025.

我想也許我會在我們展望 2025 年時補充一下我們在定價方面討論過的內容，我們討論了遊戲的九局，我們處於第 4 或 5 級火力和第 5 或 6 級火力對於救護車來說，隨著我們從一個層級移動到另一個層級，這些價格會出現中等個位數的上漲。因此，明年我們的增值內容價格上漲 6% 至 7% 是我們所考慮的，我們目前不會給出 2025 年的指導，但肯定會尋求抵消一些通膨阻力，因為我們即將邁入 2025 年。

And then maybe just to expand on the RV side, can you talk about maybe the discounting? It sounds like the dealer inventories maybe are getting to a little bit of a better place and we'll get more clarity as we go into some of the shows. But as you think about the step change from maybe 2Q to 3Q and the level of confidence that won't continue, can you talk about maybe some of the discounting or competitive dynamics in the industry and your ability to kind of outperform that?

然後也許只是為了擴展房車方面，您能談談折扣嗎？聽起來經銷商的庫存可能會有所改善，當我們進入一些展會時，我們會變得更加清楚。但是，當您考慮從第二季度到第三季度的階躍變化以及不會持續下去的信心水平時，您能否談談行業中的一些折扣或競爭動態以及您超越這些的能力？

Yes. I think that's some of the things with the revenue drop. We are participating in the discounting, as others have and that was a driver when you look at our Q3 results. So I think we'll continue to see that in providing discounts as we move forward. But as the inventory gets healthier, those have definitely dropped sequentially when you talk about industry wide.

是的。我認為這是收入下降的一些原因。我們正在參與折扣，就像其他人一樣，當你查看我們第三季的業績時，這是一個驅動因素。因此，我認為隨著我們的前進，我們將繼續看到提供折扣。但隨著庫存變得更加健康，當你談論整個行業時，這些肯定會連續下降。

So where they started in Q1, Q2 they've come down in Q3 and as the inventory has become less age sitting on deal lots and introduction of model year '25 units the discounting has been reduced on the new units. It's more the retail assistance that's provided on aged units within the inventory. But with the retails we're seeing the dealer inventory help us definitely from an industry perspective improving.

因此，他們在第一季度、第二季度開始的情況在第三季度有所下降，並且隨著交易批次上的庫存變得越來越少，以及車型年份'25 單位的推出，新單位的折扣已經減少。更多的是為庫存中的舊設備提供零售幫助。但透過零售，我們看到經銷商庫存從行業角度來看確實幫助我們改善。

Mig Dobre, Baird.

米格·多布雷，貝爾德。

So maybe going back to specialty vehicles, just for my own clarification, I guess. Can you remind us ENC, where we are in the process of winding down that business? Maybe how much revenue you recognize in the quarter from ENC? And my recollection is that, there is an EBITDA drag that's associated with ENC as well that at least in theory should be going away in fiscal '25?

所以也許回到特種車輛，我想只是為了我自己的澄清。您能否提醒我們 ENC，我們正在逐步結束該業務？也許您在本季從 ENC 獲得了多少收入？我記得，與 ENC 相關的 EBITDA 拖累至少在理論上應該會在 25 財政年度消失？

That's right. It's around $40 million in the quarter. As we talked about it, we accelerated some of the shipments from Q4 that we expected. The great work that the team did. We're able to produce essentially five months' worth of production in three month period. So I'm very proud of the team. Even though, we've been out shutdown that we've had a very engaged workforce and suppliers and customers there. We are ahead of schedule from that perspective and expect to have a complete wind down here within early parts of the Q4.

這是正確的。本季約 4000 萬美元。正如我們所討論的，我們從第四季度開始加速了我們預期的部分出貨量。團隊所做的偉大工作。我們能夠在三個月內生產相當於五個月的產量。所以我為這個團隊感到非常自豪。儘管如此，我們已經關閉了，我們在那裡擁有非常敬業的員工、供應商和客戶。從這個角度來看，我們比計劃提前了，預計將在第四季度初期完全結束。

I'll just add to what Mark said. I think when you look at EBITDA margins with that pull ahead of five month sales and some cost actions that we've been able to take in the quarter, as we wind that business down. It's not only had a schedule, but it was accretive to the overall EBITDA margins in the quarter.

我將補充馬克所說的內容。我認為，當您考慮 EBITDA 利潤率時，您會發現這超出了五個月的銷售額，並且隨著我們逐步結束該業務，我們在本季度能夠採取一些成本行動。它不僅有時間表，而且還增加了本季的整體 EBITDA 利潤率。

So ENC was actually profitable?

那麼ENC實際上是獲利的嗎？

Yes.

是的。

Yes.

是的。

In the terminal trucks, I do know that's been a drag and you highlighted that for several quarters. I'm trying to understand the magnitude of this drag in terms of what's embedded in your full year guidance for fiscal '24? What's the right way to think about this business beyond '24? Are we likely to see another step down in production next year? Are we at a trough? And what's going on margin wise at current production levels?

在碼頭卡車中，我確實知道這是一個拖累，您在幾個季度中都強調了這一點。我試圖根據 24 財年全年指導中的內容來了解這種拖累的嚴重程度？ 24 年後思考這項業務的正確方法是什麼？明年我們是否可能會看到產量再次下降？我們正處於低谷嗎？在目前的生產水準下，利潤率如何？

Yes. We're definitely at a trough and that's normal in our cycle as we talked about previously, Mig coming into an election year, as a normal trough in this business. So we've said that's a mid-single-digits margin business. Obviously, with COVID it was double-digits, but it's a mid-single-digits business going forward.

是的。我們肯定正處於低谷，這在我們的周期中是正常的，正如我們之前談到的，米格進入了選舉年，作為這個行業的正常低谷。所以我們說這是一個中等個位數利潤率的業務。顯然，在新冠疫情期間，這一數字為兩位數，但未來的業務將是個位數左右。

And we saw that there were some restructuring charges that impacted specialty vehicles. Can you talk at all about what some of the actions were that you took and any savings that would come into fiscal ‘25?

我們看到一些重組費用影響了特種車輛。您能談談您採取了哪些行動以及將進入 25 財年的任何節省嗎？

That was a continuation of the ENC closure, right? So, as we're booking restructuring as people exit the business.

這是 ENC 關閉的延續，對嗎？因此，隨著人們退出業務，我們正在安排重組。

Okay. So it's all ENC driven. And then lastly for me, in recreation, I guess, one of the things that we talked about in the past was this whole concept of backlog erosion and how eventually that's going to be reflected in production. Your backlog continued to step down sequentially. So I'm sort of curious, do you think that $150 million roughly of revenue can be sustained going forward? Or is it fair for us to expect yet another round of production cuts come the first half of fiscal '25 if demand simply stays where it currently is end user demand or sell through if you would?

好的。所以這一切都是 ENC 驅動的。最後對我來說，在娛樂方面，我想，我們過去討論的一件事是積壓侵蝕的整個概念以及最終將如何反映在生產中。您的積壓工作繼續依序減少。所以我有點好奇，你認為大約 1.5 億美元的收入可以持續下去嗎？或者，如果需求只是保持在當前的最終用戶需求水平，或者如果您願意的話，我們可以期望在 25 財年上半年進行另一輪減產嗎？

Yes, I would say, Mig like I responded to Jerry it's a wait and see here but definitely we are flexing as much cost to enable us to hold that 6% margin that we delivered. We are within the month as we get orders or don't get orders we do flex our workforce. So I do like I said in my prepared remarks I'm very appreciative of the people that we don't have a fixed schedule, right?

是的，我會說，Mig 就像我對 Jerry 的回應一樣，這裡需要等待，但我們肯定會調整盡可能多的成本，以使我們能夠保持我們交付的 6% 的利潤。我們會在收到訂單或未收到訂單的一個月內調整我們的勞動力。所以我確實像我在準備好的演講中所說的那樣，我非常感謝那些我們沒有固定時間表的人，對嗎？

So people are on a very variable schedule in the business don't have any backlogs as far as what our work schedules and times that we're taking out. We will flex those, but again to say is that $150 million or whatever it's still too hard to call here, but I can assure you we are flexing the cost and our production schedule to align with our demand.

因此，人們在業務中的日程安排非常多變，就我們的工作安排和時間而言，沒有任何積壓。我們將調整這些，但再次要說的是，1.5 億美元或其他仍然很難在這裡調用的東西，但我可以向您保證，我們正在調整成本和我們的生產計劃，以適應我們的需求。

(Operator Instructions) Mike Shlisky, D.A. Davidson.

（操作員說明）Mike Shlisky，D.A.戴維森。

I want to follow-up with you on the some of your F&E comments. Great to see that you've got really the whole margins at least into next year of some of this business. And I'm glad to see you also were able to improve the units coming out this past quarter and for much of the year. I'm curious if you could just give us an update as to what inning you think you're in as far as production rates and how much you would be able to improve the speed of production at this point versus where you would hope it would be in the over the long-term?

我想跟進您對餐飲和娛樂的一些評論。很高興看到您至少在明年的某些業務中真正獲得了全部利潤。我很高興看到您也能夠改進上個季度和今年大部分時間推出的產品。我很好奇您能否向我們提供最新信息，說明您認為自己處於哪一局的生產率以及此時與您希望的情況相比您能夠提高多少生產速度是長期的嗎？

Yes, I think our goal here I think from an ambulance perspective as we've talked about before, they're pretty much at pre-COVID rates and a little bit higher. So we feel good about where we're at from a production perspective in ambulance. We are looking at incremental capacity where we can by adding lines and whatnot or partial second shifts. But in fire I would say, we're getting that more stabilized. We still have opportunity more from an efficiency perspective Mike than it is incremental throughput.

是的，我認為我們的目標是從救護車的角度來看，正如我們之前討論過的，它們幾乎處於新冠疫情之前的水平，而且還要高一點。因此，從救護車的生產角度來看，我們對自己的現狀感到滿意。我們正在考慮透過增加線路等或部分第二輪班來增加產能。但我想說的是，在火災中，我們的情況變得更加穩定。從效率的角度來看，麥克，我們仍然有更多的機會，而不是增量吞吐量。

So it's just getting more efficient on some more custom units as they're coming. So I would say it's less a capacity discussion than it is in a production discussion just becoming more efficient as we move more complex units through the plant.

因此，隨著更多定制單元的到來，它的效率會變得更高。因此，我想說，這與其說是產能討論，不如說是生產討論，隨著我們在工廠中移動更複雜的單元，生產變得更加高效。

I feel very good that I demonstrated on Q3 where we are at, I think ambulance, like I said in our prepared remarks continue their momentum that we've seen, and then fire is catching up to ambulance from the throughput as we've expected. So they are on track with what we expected. As Amy just said, we will exit -- we actually exited Q3 at double-digits margins and we will exit Q4 at double-digit margins in specialty vehicle segment.

我感覺非常好，我在第三季度展示了我們所處的位置，我認為救護車，就像我在準備好的發言中所說的那樣，繼續我們所看到的勢頭，然後正如我們預期的那樣，火災從吞吐量中趕上救護車。所以他們正符合我們的預期。正如艾米剛才所說，我們將退出——實際上，我們以兩位數的利潤率退出了第三季度，我們將以兩位數的利潤率退出特種車輛領域的第四季度。

And then Amy, I think you mentioned in one of the earlier answers to one of the questions about a little bit fewer custom type trucks and more standardized versions of trucks coming off the line. Could you remind us whether there is a significant margin change or a difference, if the mix would have go a lot more towards standardized products? Whether you think you could make it up on the volume side, if there was a large change going over time, as folks want to get their trucks faster or in a more efficient manner?

然後艾米，我想你在之前對其中一個問題的回答之一中提到了關於減少定制類型卡車和更多標準化版本的卡車下線的問題。您能否提醒我們，如果組合更多地轉向標準化產品，是否存在顯著的利潤變化或差異？如果隨著時間的推移發生了很大的變化，因為人們希望更快或更有效地獲得卡車，您是否認為可以在數量方面進行彌補？

Yes. There's not a significant margin difference between the trucks, Mike, and that answer was more as Jerry's point -- Jerry's question was that we're doing more and more custom trucks and I just wanted to clarify that we're also -- we've built and designed and having good customer acceptance with this S180 which is a bit more of a semi-custom truck. But as far as margins go, I think specifically to your question, there's not really a material difference between the trucks.

是的。麥克，卡車之間沒有顯著的利潤差異，這個答案更像是傑瑞的觀點——傑瑞的問題是我們正在生產越來越多的定制卡車，我只是想澄清一下，我們也是——我們「我們建造和設計了這款 S180，它更像是一輛半客製化卡車，並獲得了良好的客戶認可。但就利潤率而言，我認為具體到你的問題，卡車之間並沒有真正的實質差異。

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

今天的會議到此結束。此時您可以斷開線路，我們感謝您的參與。