REV Group Inc (REVG) 2020 Q3 法說會逐字稿

Greetings, and welcome to the REV Group, Inc. Third Quarter 2020 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 REV Group, Inc. 2020 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。

It is now my pleasure to turn the floor over to Drew Konop, Vice President, Investor Relations and Corporate Development. Thank you. Mr. Konop, you may begin.

現在我很高興將發言權交給投資者關係和企業發展副總裁 Drew Konop。謝謝。科諾普先生，您可以開始了。

All right. Thanks, Doug. Good morning, and thanks for joining us. This morning, we issued our third quarter fiscal 2020 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 also available on our website. Please refer now to Slide 2 of that presentation. Our remarks and answers will include forward-looking statements, which are subject to risks that could cause actual results to differ from those expressed or implied by such forward-looking statements. These include, among others, matters that we have described in our Form 8-K filed with the SEC this morning 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 to a year are to our fiscal quarter and our fiscal year, unless otherwise stated.

好的。謝謝，道格。早安，感謝您加入我們。今天早上，我們發布了 2020 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，我們的網站上還提供了幻燈片演示，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。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。其中包括我們今天早上向 SEC 提交的 8-K 表格中描述的事項以及我們向 SEC 提交的其他文件。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季度或年度的內容均指我們的財政年度和財政年度。

Joining me on the call today are our President and CEO, Rod Rushing; as well as our CFO, Mark Skonieczny. Please turn now to Slide 3, and I'll turn the call over to Rod.

今天和我一起參加電話會議的是我們的總裁兼執行長 Rod Rushing；以及我們的財務長 Mark Skonieczny。現在請翻到投影片 3，我會將電話轉給 Rod。

Thank you, Drew, and good morning, everyone, and thank you for taking the time to join our call today. I'm going to begin with some initial comments around our operating conditions over the past several months, and then we'll move to an overview of our third quarter results.

謝謝德魯，大家早安，謝謝您今天抽出時間參加我們的電話會議。我將首先對過去幾個月我們的營運狀況進行一些初步評論，然後我們將概述第三季的業績。

Reflecting on our second quarter, we faced the initial impacts that the COVID-19 created a lot of uncertainty across our enterprise. We experienced supply chain shortages, increased absenteeism. We had interruptions to our demand. The challenge presented by the pandemic required us to really think -- rethink about how we run our operations. We took a lot of safeguards to protect our employees, including mask requirements, spacing protocols. We had some temporary shutdowns. We were cleaning throughout the day, and we applied facility wide testing as necessary. It also includes a suspension of our normal production activities within our recreation segment during the months of April and May. The day-to-day was really, really difficult on our employees. And I really want to thank them for their commitment to our customers and our shareholders, but also for the safekeeping of one another during the difficult time that we journeyed through.

回顧第二季度，我們面臨著 COVID-19 為我們整個企業帶來許多不確定性的最初影響。我們經歷了供應鏈短缺、缺勤增加。我們的需求受到了乾擾。疫情帶來的挑戰要求我們真正思考—重新思考我們的營運方式。我們採取了許多保障措施來保護我們的員工，包括戴口罩的要求、間隔協議。我們有一些臨時關閉。我們全天進行清潔，並根據需要對設施進行廣泛的測試。它還包括在四月和五月期間暫停我們娛樂部門的正常生產活動。對我們的員工來說，日常生活真的非常非常困難。我真的要感謝他們對我們的客戶和股東的承諾，同時也感謝他們在我們經歷的困難時期相互保護。

By fiscal third quarter, our manufacturing operations began to normalize, at least in the new COVID environment. We saw our demand stabilize in certain segments, but there was still quite a bit of uncertainty related to school attendance and working-from-home policies as well as pressures on municipal budgets, and we still saw some intermittent supply chain challenges. We did see great increase in demand in our RV segment and were able to ramp up our recreation production during that time. During the month of June, we conducted our strategic business reviews with each of our business units. These business reviews focus on our 3-year market product and commercial strategies. They provide us with a clear understanding of some of the challenges we'll face near-term related to the pressures we've already talked about. But most importantly, they gave us a 3-year view to our commercial strategy for our secured business that we'll look to continue to replenish our current healthy backlogs.

到第三財季，我們的製造業務開始正常化，至少在新冠疫情環境下是如此。我們看到某些細分市場的需求穩定，但與學校出勤率和在家工作政策以及市政預算壓力相關的不確定性仍然很大，而且我們仍然看到一些間歇性的供應鏈挑戰。我們確實看到房車市場的需求大幅增長，並且能夠在此期間提高我們的娛樂生產。六月份，我們對每個業務部門進行了策略性業務審查。這些業務回顧重點關注我們的 3 年市場產品和商業策略。它們讓我們清楚地了解我們近期將面臨的一些挑戰，這些挑戰與我們已經討論過的壓力有關。但最重要的是，他們為我們提供了對我們安全業務的商業策略的三年展望，我們將繼續補充我們當前健康的積壓訂單。

Now the process, the SBR process, the strategic business review process is a new process to us that's ongoing, but exiting those discussions it was -- I had great deal of confidence with the path to deliver growth above the end markets that we -- growth that we're in. And this will be a source of improved profitability for the business.

現在，SBR 流程、策略性業務審查流程對我們來說是一個正在進行的新流程，但退出這些討論後，我對在終端市場之上實現成長的道路充滿信心，我們——我們所處的成長。這將成為提高業務獲利能力的一個來源。

Within the quarter, we continued our journey of improving and building our operational capabilities. Several of our businesses have a strong history of performance in lean and other manufacturing excellence elements. While other businesses we've discussed in the past present a great opportunity for improvement. We are focused on developing our people and our capabilities and processes to improve these results. While there's inefficiencies that exist in our current operations that are manifested in our financial results, there remains much opportunity inside the business to create value. We will continue to address these inefficiencies over the next several quarters while building our internal bench of talent and capabilities toward improving execution to get at this value that's inside our business.

本季度，我們繼續改進和建立營運能力。我們的一些企業在精益和其他卓越製造要素方面擁有悠久的業績歷史。而我們過去討論過的其他業務則提供了巨大的改進機會。我們專注於培養我們的員工以及我們的能力和流程，以改善這些結果。雖然我們目前的營運存在效率低下的問題，這在我們的財務表現中得到了體現，但企業內部仍然有很多創造價值的機會。我們將在接下來的幾季繼續解決這些效率低下的問題，同時建立我們的內部人才和能力庫，以提高執行力，以實現我們業務內部的價值。

I'm going to now move to a summary of our consolidated third quarter results. Although we are still experiencing the lingering impacts of the pandemic, our results for the third quarter were generally in line with our expectation. Net sales of $582 million decreased 5.6% compared to our prior year. Excluding recent M&A activity, organic sales decreased by 10% year-over-year, reflecting year-end lingering end market disruptions from the COVID impacts primarily to our F&E segment and commercial segments, but these were offset by an increase in our recreational vehicle demand. Adjusted EBITDA of $21.4 million was down 36% versus prior year, and adjusted EBITDA margin of 3.7% is a decrease of 170 basis points versus prior year. However, these results do reflect sequential operational improvement in several businesses plus necessary flexing down of cost at the businesses that were impacted by soft demand.

我現在將總結我們第三季的綜合業績。儘管我們仍然受到疫情的影響，但第三季的業績總體符合我們的預期。淨銷售額為 5.82 億美元，較上年下降 5.6%。不包括最近的併購活動，有機銷售額年減了 10%，反映出年底新冠疫情對我們的 F&E 部門和商業部門的影響所造成的終端市場持續混亂，但這些被我們休閒車需求的增長所抵消。調整後 EBITDA 為 2,140 萬美元，較上年下降 36%，調整後 EBITDA 利潤率為 3.7%，比上年下降 170 個基點。然而，這些結果確實反映了一些業務的連續營運改善，以及受需求疲軟影響的業務的必要成本下降。

Much has been done since our last call to address core issues that -- in our most challenging businesses, while taking steps at the enterprise toward building a performance culture, focused on safety and the voice of customer and obviously, cost management, all focused on delivering improved bottom line performance. I'm going to now turn it over to Mark for the details of our third quarter financial performance.

自從我們上次呼籲解決核心問題以來，我們已經做了很多工作——在我們最具挑戰性的業務中，在企業採取措施建立績效文化的同時，重點關注安全和客戶的聲音，顯然還有成本管理，所有這些都專注於提供更高的底線績效。我現在將把我們第三季財務業績的詳細資料交給馬克。

Okay. Thanks, Rod, and good morning, everyone. Please turn to Page 4 of the slide deck as I review our segment level performance.

好的。謝謝羅德，大家早安。請翻到投影片第 4 頁，我將回顧我們的細分市場績效。

Fire & Emergency third quarter segment sales increased by 24% compared to last year to $307 million. This includes approximately $75 million of sales attributable to our acquisition of Spartan ER that occurred earlier in the year. Excluding Spartan, organic segment sales decreased 6% as we shipped fewer ambulance units and to a lesser extent fire trucks from one plant due to continued COVID-19 disruptions related to absenteeism, inspections and delivery timing.

消防與緊急救援第三季銷售額較去年成長 24%，達到 3.07 億美元。其中包括今年稍早收購 Spartan ER 帶來的約 7,500 萬美元銷售額。不包括斯巴達，有機部門銷售額下降了6%，因為由於與缺勤、檢查和交貨時間相關的COVID-19 持續中斷，我們從一家工廠運送了救護車和消防車（較小程度上減少了）。

Within the Fire division, our Ocala, Florida plant benefited from increased throughput due to a manufacturing realignment, personnel changes and a focus on lean manufacturing practices. After several quarters of struggling to consistently increase throughput, we have once again experienced sequential improvement which led to announcement of lower delivery times on new orders from this plant. Net sales of North American ambulances were down approximately 20% year-over-year. Due to shelter-at-home orders, the number of emergency medical service events, which reflects ambulance calls to our commercial customer base were down 4% in our fiscal second quarter, which resulted in temporary order delays from non-municipal customers. The fiscal third quarter production decline was further impacted by limited availability of chassis from OE manufacturers that made production slotting more challenging. As we exited the third quarter, EMS events have increased and are down just 15% year-over-year and availability of chassis has improved. As a result, we expect a number of units and profitability of the Ambulance division to improve sequentially as we move forward.

在消防部門，我們佛羅裡達州奧卡拉的工廠由於製造調整、人員變動和對精益製造實踐的關注而受益於產量的增加。經過幾季努力持續提高吞吐量後，我們再次經歷了連續的改進，導致該工廠宣布縮短新訂單的交貨時間。北美救護車的淨銷量年減約 20%。由於居家避難令，第二財季緊急醫療服務事件（反映商業客戶群的救護車呼叫數量）下降了 4%，導致非市政客戶的訂單暫時延遲。原始設備製造商的底盤供應有限，進一步影響了第三財季的產量下降，這使得生產安排更具挑戰性。隨著第三季的結束，EMS 事件有所增加，年比僅下降 15%，底盤的可用性有所改善。因此，我們預計救護車部門的數量和盈利能力將隨著我們的前進而逐步改善。

F&E segment adjusted EBITDA was $12.9 million in the third quarter of 2020 compared to $12.1 million in the third quarter 2019. The increase was primarily due to Spartan ER and increased throughput at Ocala, partially offset by a decrease of profitability in the Ambulance division due to the sales reduction previously noted. Spartan contributed $5 million EBITDA to the F&E segment within the quarter, which exceeded our expectations. This was a result of favorable mix within the quarter and greater-than-expected profitability as we were able to accelerate cost reductions and improved throughput sooner than originally planned.

2020 年第三季F&E 部門調整後的EBITDA 為1,290 萬美元，而2019 年第三季F&E 部門調整後的EBITDA 為1,290 萬美元，而2019 年第三季為1,210 萬美元。能力下降所抵銷。 Spartan 本季為 F&E 部門貢獻了 500 萬美元的 EBITDA，超出了我們的預期。這是本季有利的組合和高於預期的獲利能力的結果，因為我們能夠比原計劃更快地加速成本降低和提高吞吐量。

Total F&E backlog was $1 billion, up 34% year-over-year. This includes backlog acquired from Spartan and reflects strong ambulance order intake over the trailing 12 months, including a large municipal order that will be produced throughout fiscal 2021. A decline in legacy fire truck backlog is largely the result of increased throughput at Ocala, which has lowered the backlog duration and allowed us to announce shorter delivery times for new orders. We will continue to work toward what we feel is a normalized 9 to 12 month backlog duration within the Fire division. We currently expect sequential margin improvement within the F&E segment, reflecting improvement in both the Fire and Ambulance divisions. Within Fire strong third quarter performance at Spartan is not expected to repeat in the fourth quarter due to mix. However, we do expect operational improvements to drive greater EBITDA contribution from all other businesses. Our Ambulance businesses are expected to improve from the third quarter's inefficiencies relating to lingering COVID impacts but are still subject to potential risks surrounding chassis supply from our OE partners.

F&E 積壓總額為 10 億美元，較去年同期成長 34%。這包括從Spartan 獲得的積壓訂單，反映了過去12 個月的救護車訂單量強勁，其中包括將在2021 財年生產的大型市政訂單。增加，該工廠降低了積壓持續時間，使我們能夠宣布縮短新訂單的交貨時間。我們將繼續努力實現消防部門內 9 至 12 個月的正常積壓期限。我們目前預計 F&E 部門的利潤率將持續改善，反映出消防和救護車部門的改善。在 Fire 中，由於混合因素，斯巴達第三季的強勁表現預計不會在第四季度重演。然而，我們確實預計營運改善將推動所有其他業務做出更大的 EBITDA 貢獻。我們的救護車業務預計將從第三季因新冠疫情揮之不去的影響而導致的效率低下有所改善，但仍面臨著我們的原廠合作夥伴底盤供應的潛在風險。

Turning to Slide 5. Commercial segment quarterly sales of $92 million were down 55% compared to the prior year period. Prior year reported commercial segment revenue includes approximately $55 million from the shuttle buses divested within the quarter. The remaining decline in sales related to lower sales at all businesses within the segment. School bus unit sales were down 33% year-over-year as orders for the fall semester were delayed due to school attendance uncertainty. The municipal transit sales also decreased versus prior year as delivery timing was adjusted to accommodate customers that shifted budgets from capital investment to operating budgets. Transit orders were not lost, but were slightly -- shifted slightly to the right, and we fully expect to capture these sales over the next 5 quarters.

轉向投影片 5。上一年報告的商業部門收入包括來自本季度剝離的班車的約 5500 萬美元。其餘的銷售額下降與該部門內所有業務的銷售額下降有關。由於學校出勤率的不確定性，秋季學期的訂單被推遲，校車銷量較去年同期下降 33%。由於調整交付時間以適應將預算從資本投資轉向營運預算的客戶，市政交通銷售額也比去年下降。運輸訂單沒有丟失，但略有向右移動，我們完全期望在接下來的 5 個季度中獲得這些銷售。

Specialty markets remain depressed with sales down nearly 50% versus last year. At the end of the third quarter, we did receive restocking orders for terminal trucks, however, pricing has been competitive in this environment. Commercial segment adjusted EBITDA of $10.3 million was down 47% versus the prior year period, which included $1 million of EBITDA related to divested shuttle bus businesses. The decline in EBITDA was primarily the result of lower sales partially offset by aggressive cost-out actions in all businesses that limited the decremental margin for the segment. These have been some of our best businesses reflecting cost to match demand and the double-digit margin delivered against steep revenue declines within the quarter reflect that. This is the type of performance culture that Rod has discussed and what we are building towards and will expect out of all our businesses.

專業市場依然低迷，銷售額比去年下降了近 50%。第三季末，我們確實收到了碼頭卡車的補貨訂單，但在這種環境下，定價具有競爭力。商業部門調整後的 EBITDA 為 1,030 萬美元，比去年同期下降 47%，其中包括與剝離的班車業務相關的 100 萬美元的 EBITDA。 EBITDA 的下降主要是由於銷售額下降，但部分被所有業務中激進的成本削減行動所抵消，限制了該部門利潤率的下降。這些是我們最好的業務，反映了與需求相匹配的成本，並且在本季度收入急劇下降的情況下實現了兩位數的利潤率反映了這一點。這就是羅德所討論的績效文化類型，也是我們正在建立的目標以及對我們所有業務的期望。

Commercial segment backlog at the end of the third quarter was $300 million, down 24% versus the prior year quarter, which contained $87 million of shuttle bus backlog. And organic backlog decline of 3% was a result of a decreased school bus and specialty division orders, offset by an increase in municipal transit backlog, which we expect to build again into fiscal 2022. The outlook for the commercial segment will be impacted by municipal budgets, school attendance in both undergraduate and graduate institutions, consumers' willingness to travel and capital expenditure programs at our rental company and logistics customers. We are closely monitoring state, local and school district health and safety practices such as this passenger spacing requirements or staggering routes that have been implemented to a limited number of riders in various municipalities. And we are proactively working on solutions to assist public safety and adapt to our customers' needs as we enter new buying cycles. However, we currently expect all commercial end markets remain depressed within our fiscal fourth quarter and will continue to flex our cost structure to reflect the ongoing level of demand.

第三季末，商業部門的積壓訂單為 3 億美元，比去年同期下降 24%，其中包括 8,700 萬美元的穿梭巴士積壓訂單。校車和專業部門訂單減少導致有機積壓下降 3%，但被市政交通積壓增加所抵消，我們預計 2022 財年將再次積壓積壓。的入學率、消費者的旅行意願以及我們租賃公司和物流客戶的資本支出計劃。我們正在密切關注州、地方和學區的健康和安全實踐，例如在各個城市針對有限數量的乘客實施的乘客間距要求或錯開路線。隨著我們進入新的購買週期，我們正在積極開發解決方案，以協助公共安全並適應客戶的需求。然而，我們目前預計所有商業終端市場在第四財季仍然低迷，並將繼續調整我們的成本結構以反映持續的需求水準。

Turning to Slide 6. Recreation segment sales of $183 million were up 10% versus last year, reflecting strong wholesale shipments and retail demand for all motorized categories. In the towable business, which is located in California, production of trailers and campers remained suspended during the early weeks of the quarter due to COVID related work restrictions. Segment sales were also limited by industry-wide supply chain disruptions, particularly Class A gas chassis, furniture, appliances and certain electronic items. Recreation segment adjusted EBITDA was $12.1 million for the third quarter, down 5.5% versus the prior year. The decline in EBITDA, despite an increase in revenue was primarily a result of decrease in sales and resulting profitability in our towable business due to lingering production shutdown within the quarter partially offset by an increase in sales and profitability within the Class A business late in the quarter due to higher volumes and cost-out actions taken.

轉向投影片 6。在位於加州的拖車業務中，由於與新冠病毒相關的工作限制，拖車和露營車的生產在本季度的前幾週仍處於暫停狀態。細分市場的銷售也受到全行業供應鏈中斷的限制，特別是 A 級燃氣底盤、家具、電器和某些電子產品。第三季娛樂部門調整後 EBITDA 為 1,210 萬美元，比去年同期下降 5.5%。儘管收入有所增加，但 EBITDA 的下降主要是由於本季度持續停產導致拖車業務的銷售額和盈利能力下降，部分被本季度末 A 級業務的銷售額和盈利能力的增長所抵消。和採取的成本削減措施，該季度的業績下降。

Segment backlog increased 153% year-over-year to $328 million. The increase is a result of strong order intake across all RV categories over the past 3 months as we regain the momentum of dealer signings and product introductions that we had carried into the COVID shutdowns. Within the quarter, we gained retail share in Class A, Class B and campers and remain approximately flat in Class C and trailers. Retail sales continue to outpace wholesale shipments and dealer inventories are down an average of 33% year-over-year with many brands near historic lows. We are working through our supply chain constraints and will adapt our production line rates to reflect product availability as we work against record backlog. We expect to navigate supply chain uncertainty and participate in the current recreation market rebound while continuing to take share in certain categories. Increased chassis availability and production volumes expect to improve profitability at our Class A business and benefit overall segment profitability in the fourth quarter.

部門積壓訂單年增 153%，達到 3.28 億美元。這一增長是由於過去 3 個月所有房車類別的訂單量強勁，因為我們恢復了在新冠疫情關閉期間進行的經銷商簽約和產品推出的勢頭。在本季度內，我們獲得了 A 級、B 級和露營車的零售份額，而 C 級和拖車的零售份額基本上持平。零售銷售持續超過批發出貨，經銷商庫存平均年減 33%，許多品牌接近歷史低點。我們正在解決供應鏈的限制，並將調整我們的生產線速度，以反映產品的可用性，同時應對創紀錄的積壓。我們預計將克服供應鏈的不確定性，參與當前的休閒市場反彈，同時繼續在某些類別中佔據份額。底盤可用性和產量的增加預計將提高我們 A 級業務的獲利能力，並有利於第四季度的整體部門獲利能力。

Turning to Slide 7. Year-to-date, net cash provided by operating activities was $25 million compared to $22 million of net cash provided in the prior year period. Cash generated was related to improved net working capital efficiency, specifically related to inventory management. We will continue to optimize our use of net working capital in our businesses as we focus on a cash return on investment framework that measures overall asset intensity, including net working capital against the returns on those assets. We will also identify and liquidate unproductive assets. The operating inefficiencies the company has experienced over the past several quarters has also led to inefficiencies on the balance sheet.

轉向投影片 7。產生的現金與淨營運資本效率的提高有關，特別是與庫存管理有關。我們將繼續優化業務中淨營運資本的使用，因為我們專注於衡量整體資產強度的投資現金回報框架，包括淨營運資本與這些資產回報的比較。我們也將識別和清算非生產性資產。該公司過去幾季的營運效率低下也導致了資產負債表效率低下。

Within the quarter, we exited the rental operations within our REV finance operations and incurred a $3.7 million noncash impairment for the anticipated sale of all rental vehicles. We are also continuing to pursue the sale of land and other assets with expected proceeds of approximately $10 million and are still awaiting a CARES Act cash refund, which is now expected to be received within our fiscal fourth quarter. On May 8, we divested 2 shuttle bus businesses, generating $49 million of cash at closing, which was used to pay down debt within the third quarter. Net debt as of July 31 was $373 million, including $17 million of cash on hand versus $377 million at the end of fiscal 2019. Additional cash from operations, the sale of balance sheet assets, anticipated CARES Act cash refund will primarily be used to pay down debt as we work to reduce the total amount of debt in our fourth quarter.

在本季度內，我們退出了 REV 財務業務中的租賃業務，並為所有租賃車輛的預期銷售產生了 370 萬美元的非現金減損。我們還將繼續出售土地和其他資產，預計收益約為 1000 萬美元，並且仍在等待 CARES 法案現金退款，目前預計將在第四財季內收到。 5 月 8 日，我們剝離了 2 項班車業務，交易結束時產生了 4,900 萬美元現金，用於在第三季償還債務。截至7 月31 日的淨債務為3.73 億美元，包括手頭現金1700 萬美元，而2019 財年末為3.77 億美元。用於支付我們努力減少第四季的債務總額，從而減少債務。

At quarter end, the company maintained ample liquidity with $221 million available under our ABL revolving credit facility. From a net working capital perspective, on July 31, 2020, was $402 million compared to $429 million at the end of the second quarter. This change reflects the divestiture of shuttle bus businesses as well as improved inventory management, partially offset by timing of payments within the quarter. As you saw earlier today, we reassumed full year fiscal 2020 guidance, with sales expected to be in the range of $2.25 billion to $2.3 billion and adjusted EBITDA in the range of $64 million to $68 million. This guidance reflects our current visibility on supply chain availability, absentee rates and government policy surrounding COVID-19. And adjusted EBITDA outlook reconciliation as well as net income reconciliation are provided in today's press release and in the appendix of our slide deck.

截至季末，公司保持了充足的流動性，我們的 ABL 循環信貸安排下提供了 2.21 億美元的可用資金。從淨營運資本角度來看，截至 2020 年 7 月 31 日，淨營運資本為 4.02 億美元，而第二季末為 4.29 億美元。這項變更反映了班車業務的剝離以及庫存管理的改善，但部分被本季付款時間所抵消。正如您今天早些時候所看到的，我們重新制定了2020 財年全年指引，銷售額預計在22.5 億美元至23 億美元之間，調整後的EBITDA 在6400 萬美元至6800 萬美元之間。本指南反映了我們目前對供應鏈可用性、缺勤率和有關 COVID-19 的政府政策的了解。今天的新聞稿和幻燈片附錄中提供了調整後的 EBITDA 展望調節表以及淨利潤調節表。

With that, I'll turn it back to Rod for closing comments.

至此，我將把它轉回羅德以徵求結束意見。

Thanks, Mark. In closing, just a few closing comments before we head into questions. I would like to once again thank the dedication of our employees throughout these unprecedented events over the last 6 months. They've demonstrated engineering resilience and the adaptability to change that have impacted work conditions here at REV, but also, frankly, their lives. Together, we've navigated uncertainly related to supply chain and disruptions in demand. We faced the challenges of the past 2 quarters and thinking about the road ahead, and we certainly are excited about what we can see in terms of operational opportunity ahead of us.

謝謝，馬克。最後，在我們進入問題之前，請先做一些總結評論。我要再次感謝我們的員工在過去 6 個月的這些史無前例的事件中的奉獻精神。他們展現了工程彈性和對變化的適應能力，這不僅影響了 REV 的工作條件，而且坦白說，也影響了他們的生活。我們共同應對了供應鏈和需求中斷所帶來的不確定性。我們面臨過去兩個季度的挑戰並思考未來的道路，我們當然對我們面前的營運機會感到興奮。

I'm very pleased with notable change in collaboration at all levels from the value stream mapping that we see on our production floor to the tighter alignment between division and corporate leadership. We're taking important steps towards realizing the full benefits of becoming an operating company. We're entering fiscal year FY '21 annual planning process with great enthusiasm to continue the momentum that we're building as a foundation with much excitement for the work that lays ahead of us. So I can't tell you how grateful I am to the team for the hard work that they've done, how excited I am about the future and the things that we're doing.

我對各個層面的協作發生顯著變化感到非常高興，從我們在生產車間看到的價值流程圖到部門和公司領導層之間更緊密的協調。我們正在採取重要步驟，以實現成為營運公司的全部好處。我們正以極大的熱情進入 21 財年的年度規劃流程，以繼續我們正在建立的勢頭，為我們面前的工作感到非常興奮。所以我無法告訴你我對團隊所做的辛勤工作有多感激，我對未來和我們正在做的事情有多興奮。

And with that, I'd like to hand over the operator and we can take a few questions here this morning.

就這樣，我想把接線員交給我們，我們今天早上可以在這裡回答幾個問題。

(Operator Instructions) Our first question comes from the line of Courtney Yakavonis with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的考特尼·亞卡沃尼斯（Courtney Yakavonis）。

I'm wondering if you can just comment a little bit on the margin trajectory for commercial, given that you kind of see sales to be depressed through the fourth quarter. But obviously, you've been taking a lot of cost out, had very impressive margins in the quarter. So can you just help us think about -- how to think about margins in the commercial business, especially given these depressed sales? And then also, I think you said you expect to recapture the sales over the next 5 quarters. Do you have any sense of the cadence of when that will come in? Will it be very heavily back-end loaded, maybe not until next year?

我想知道您是否可以對商業利潤軌跡發表一點評論，因為您認為第四季度的銷售將低迷。但顯然，您已經削減了大量成本，本季的利潤率非常可觀。那麼，您能否幫助我們思考一下—如何考慮商業業務的利潤率，特別是考慮到銷售低迷？另外，我想您說過您希望在接下來的 5 個季度內重新獲得銷售額。你知道它什麼時候出現的節奏嗎？後端負載是否會非常重，也許要到明年才能實現？

Courtney, this is Mark. I would say from -- yes, from the transit side, that was a shift, and that's the order that we're building against as I noted in my comments, through '21. So that was really just a shift out of the year into -- further into, I would say, probably sequentially over the multiple quarters, Q1, Q2, Q3. I wouldn't say it's all back end loaded from that perspective. And then the cadence as you asked on the bus side, that's really maintaining that margin and is going to be key from the perspective of there we see volume coming back up, but still depressed. But as far as our line rates, we'll be looking at extended line rates there. So we won't get the pure efficiencies that we had in Q3 that we're building off a larger backlog there. So as the backlog came down, some of our build schedule would be stretched out, and we'll maintain the workforce, but we'll still drive some efficiencies, but I would not expect the margin to maintain at that percent that we had in Q3.

考特尼，這是馬克。我想說的是，從——是的，從交通方面來看，這是一個轉變，這就是我們在 21 年之前在評論中指出的所建立的秩序。因此，這實際上只是今年的一個轉變——我想說，可能會連續多個季度，即第一季、第二季、第三季。從這個角度來看，我不會說這都是後端載入的。然後，正如您在公車方面所問的那樣，這確實是維持該利潤的關鍵，從我們看到成交量回升但仍然低迷的角度來看，這將是關鍵。但就我們的線路費率而言，我們將關注那裡的擴展線路費率。因此，我們不會像第三季那樣獲得純粹的效率，因為我們在那裡建立了更大的積壓訂單。因此，隨著積壓的減少，我們的一些構建計劃將被延長，我們將保留勞動力，但我們仍然會提高一些效率，但我不認為利潤率會維持在我們的百分比Q3。

Okay. That's helpful. And then I guess maybe just on the strength that you're seeing in recreation. You obviously mentioned you're seeing strong order intake across all the categories, but any sense of the cadence of that? Did the exit rate of orders -- is that as strong as it was kind of earlier in the summer? And I think you mentioned that the production was suspended for the trailers and campers. Where are we on that? Are there any kind of constraints on the production side or how has production been ramping?

好的。這很有幫助。然後我想也許只是因為你在娛樂中看到的力量。您顯然提到您在所有類別中都看到了強勁的訂單量，但您對這種節奏有什麼感覺嗎？訂單退出率是否與夏季早些時候一樣強勁？我想你提到了拖車和露營車的製作已暫停。我們在這方面的進展如何？生產方面是否有任何限制，或產量如何提高？

This is Rod. There's a bit of variability for business to business. The constraints we see on the production side are still related to supply chain constraints around certain materials and then some absenteeism that's somewhat localized in the businesses. But we look at the order rates, retail versus wholesale, and the retails continue to outpace wholesale. So we continue to see good movement of product in terms of how it's moving through the channel and then -- but we're also mindful that, that's a cyclical business and that it's subject to change based on the COVID. So we're optimistic. We've got great backlogs. We're going to continue to convert those. But we're also very -- got our ear to the market to make sure we're understanding how the market proceeds through as we hopefully solve this COVID challenge that we're facing.

這是羅德。企業與企業之間存在一些差異。我們在生產方面看到的限制仍然與某些材料的供應鏈限制以及企業中局部的缺勤有關。但我們觀察了零售與批發的訂單率，發現零售持續超過批發。因此，我們繼續看到產品在通路中的流動情況良好，但我們也注意到，這是一個週期性業務，並且可能會根據新冠疫情而改變。所以我們很樂觀。我們有大量的積壓訂單。我們將繼續對它們進行轉換。但我們也非常關注市場，以確保我們了解市場的進展情況，因為我們希望解決我們面臨的新冠挑戰。

Our next question comes from the line of Stephen Volkmann from Jefferies.

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

So Rod, I guess a couple of things, big picture and then a quick follow-up for Mark, if I could. You've been there a couple of quarters now. You've obviously started to move the needle, I think, with respect to sort of productivity initiatives, et cetera. Do you have enough kind of under your belt now to have a view as to what level of margins are kind of attainable over a 2 to 3-year period, I don't know, call it, maybe at a mid-cycle level volume? Just kind of what can this business do now that you've kind of got your arms around the issues?

羅德，我想有幾件事，大局，然後是馬克的快速跟進，如果可以的話。你已經在那裡待了幾個季度了。我認為，在生產力計劃等方面，您顯然已經開始取得進展。您現在是否有足夠的資金來了解在 2 到 3 年期間可以達到什麼水平的利潤率，我不知道，稱之為，也許是在周期中期的數量？既然你已經解決了這些問題，那麼這個企業可以做些什麼呢？

Well, I think that business unit by business unit, there's some variation. But our belief is that this portfolio of businesses should yield double digit earnings. And that's what we said in the first call, I think it's just given the operational capabilities built and the disciplines built to deliver that. And it's not wholly dependent on a lot of volume leverage to get you there. I think we just got to continue to work our cost of goods sold and our structural costs, obviously maintain throughput, and there's a path to get there. So I'm a big believer that this is a double-digit earnings business as a portfolio and that's where we're going to get it.

嗯，我認為不同的業務部門存在一些差異。但我們相信，該業務組合應該會產生兩位數的收益。這就是我們在第一次電話會議中所說的，我認為這只是考慮到所建立的營運能力和為實現這一目標而建立的紀律。而且它並不完全依賴大量的成交量槓桿來實現這一目標。我認為我們必須繼續研究我們的銷售成本和結構成本，顯然要保持吞吐量，而且有一條路可以實現這一目標。因此，我堅信，作為一個投資組合，這是一項兩位數盈利的業務，而這正是我們將獲得的。

And that would be EBITDA earnings?

那就是 EBITDA 收益嗎？

Yes.

是的。

Right. Okay. And then, Mark, you mentioned a number of things that should be beneficial to cash flow in the fourth quarter. Any way to sort of put bookends around the numbers there? I mean what do you think we could do in the fourth quarter for cash flow?

正確的。好的。然後，馬克，您提到了一些有利於第四季度現金流的事情。有什麼辦法可以把書擋放在數字周圍嗎？我的意思是，您認為我們在第四季可以為現金流做些什麼？

Yes. We have ins and outs, like you said, so I don't want to give for guidance on the cash flow but there are -- as we pointed out, we're still pursuing the land, which I think the previous management also said as well as our CARES Act, which we had quantified of $10 million. But as we continue to work through, Steve, as I mentioned, the inefficiencies on our balance sheet, we have now actually put in a process that we can look at our optimized position by business unit for inventory, and we continue to work that as the inefficiencies come out. But we will be positive cash flow for the quarter as we're predicting, but book and they're probably not at this point with some of the larger items that we have that we're counting on to come through there.

是的。正如您所說，我們有來龍去脈，所以我不想提供有關現金流的指導，但正如我們所指出的，我們仍在追求土地，我認為前任管理層也說過以及我們的CARES 法案，我們將其量化為1000 萬美元。但隨著我們繼續努力解決，史蒂夫，正如我所提到的，我們的資產負債表效率低下，我們現在實際上已經建立了一個流程，我們可以按業務部門的庫存查看我們的優化位置，我們將繼續努力低效率的情況就會顯現出來。但正如我們預測的那樣，本季度我們將實現正現金流，但預訂時他們可能還沒有完成我們所擁有的一些較大項目，我們指望在那裡完成。

Okay. Is working capital a source or a use in the fourth quarter?

好的。第四季營運資金是來源還是用途？

Yes, it will be a source.

是的，這將是一個來源。

Our next question comes from the line of Mig Dobre with Robert W. Baird.

我們的下一個問題來自 Mig Dobre 和 Robert W. Baird 的對話。

I just kind of wanted to follow-up on Steve's question there. Maybe ask it a little bit different, Rod. Where would you say you are in terms of assembling your -- the broader team that you want at REV Group at this point and where are you on outlining the broader vision for the company? Because I can appreciate your comment that you believe this business should be able to do double-digit EBITDA margin. But I think it's not entirely clear as to how we're going to get there. And the things that you're effectively going to have to do to sort of build that momentum. So I'm kind of curious as to where we are in the process and maybe some of the things that you can give us to kind of help us along here.

我只是想跟進史蒂夫的問題。也許問得有點不同，羅德。您認為目前 REV 集團在組建更廣泛的團隊方面您處於什麼階段？因為我很欣賞您的評論，您認為該業務應該能夠實現兩位數的 EBITDA 利潤率。但我認為我們如何實現這一目標尚不完全清楚。以及你實際上必須做的事情來建立這種動力。所以我很好奇我們目前處於什麼階段，也許您可以給我們一些幫助我們的東西。

Yes. We spent -- it's a great question. We spent a lot of time as a leadership team, and I'll get to the first part of your question at the back end in terms of the structure of the team and where we're at in that journey. But we spent a lot of time as a team working on a right to learn process of understanding what could this business yield and then where is that opportunity trapped inside the business. And you look at your -- your structural cost and your footprint, you look at those elements, but a lot of this value is trapped in what I believe is purchasing upside, conversion costs and opportunity in design cost. And so building the capabilities to get at that internally on how you think about what kind of process and talent do you need to go get it, lean activities that drive conversion cost improvement, purchasing cost opportunity that you can get out that I think still, while we've done some good things there, I still think there's much opportunity in our material spend.

是的。我們花了——這是一個很好的問題。我們作為一個領導團隊花了很多時間，我將在後端討論你問題的第一部分，即團隊的結構以及我們在這過程中所處的位置。但我們作為一個團隊花了很多時間致力於正確的學習過程，以了解該業務可以產生什麼，然後該業務中的機會在哪裡。你看看你的——你的結構成本和你的足跡，你看看這些元素，但很多價值都被困在我認為的購買優勢、轉換成本和設計成本機會中。因此，要建立內部實現這一目標的能力，包括如何思考需要什麼樣的流程和人才來實現這一目標，推動轉換成本改進的精益活動，我認為仍然可以獲得的採購成本機會，雖然我們在那裡做了一些好事，但我仍然認為我們的物質支出有很多機會。

And then obviously, getting design costs as you think about platforming products, a lot of those things are tied -- those things are tied to building capabilities and inside the business and then rigor around tracking pipelines to go get at that. We have -- in the short term, we've supplemented our team by bringing in into specific businesses to get at some of the near-term opportunity, just really when you think about lean implementation and value streaming in these plants and the short list of plants. We kind of accelerated that by bringing folks in to help us while we're building the capabilities. But it's really traditional. The opportunities to get the margin expansion are really pro typical things that you would see in any industrial manufacturing business, how you look at your cost. And we do have aspirations to grow with the market, a little bit above the market, but we're trying to identify the path to 10% of what we've done, the work we've done, right, which I refer to as right to left, which gets us there is really a journey across time to get these operational cost savings.

顯然，當你考慮平台產品時，獲得設計成本，很多東西都是相互聯繫的——這些東西與構建能力和業務內部聯繫在一起，然後嚴格跟踪管道以實現這一點。在短期內，我們透過引入特定業務來補充我們的團隊，以獲得一些近期機會，當你考慮這些工廠和短名單中的精益實施和價值流時，我們確實如此的植物。在我們建構能力的過程中，我們邀請人們來幫助我們，這在某種程度上加速了這個過程。但這確實很傳統。獲得利潤擴張的機會確實是您在任何工業製造企業中都會看到的典型事情，無論您如何看待成本。我們確實渴望與市場一起成長，略高於市場，但我們正在努力找出實現我們已完成工作的 10% 的路徑，對吧，我指的是從右到左，這讓我們真正需要跨越時間的旅程才能節省營運成本。

With respect to the talent, when you look at the top, call it, 30 leaders in the company, in the 6 months that we've been here, we changed about 40% of those people. So we've done a lot of transitional leadership. I think the journey around leadership is never done. I think you're always looking at where you're at and adding talent or upgrading talent. But I do believe we've made a lot of progress there. And I think it's -- we're starting to see evidence that in some of the -- in the results in the business as well. We're early in the process. It's not a long journey, but it's a journey where you’ve got to build these capabilities, you got to have talent to do that and we're moving at a quick pace to do that. But we're also, as I mentioned before, bringing in folks to help supplement to accelerate the changes that we need in some of these businesses that are more acutely underperforming in the portfolio.

就人才而言，當你看看高層時，公司有 30 名領導者，在我們來這裡的 6 個月裡，我們更換了其中約 40% 的人。所以我們做了很多過渡性領導工作。我認為圍繞領導力的旅程永遠不會結束。我認為你總是專注於自己所處的位置並增加人才或升級人才。但我確實相信我們已經在這方面取得了很大進展。我認為，我們也開始在一些業務結果中看到證據。我們還處於這個過程的早期階段。這不是一個漫長的旅程，但這是一個你必須建立這些能力的旅程，你必須擁有做到這一點的人才，而我們正在快速做到這一點。但正如我之前提到的，我們也引入了人員來幫助補充，以加速我們在投資組合中表現更嚴重的一些業務所需的變革。

Sure. I guess if I am looking at the Fire & emergency business, right, this is at least in my mind, one of the key levers that you have in driving value inside the company. I mean this is a business that if I look back, gosh, call it, 3 years ago, was definitely earning double-digit EBITDA margin. And the volumes haven't really changed all that much over the past 3 years. So we're not talking about significant volume compression yet the margins obviously are materially lower. You talked about some of the changes in purchasing and some of the changes in design. I certainly understand how that would generate some savings. But unless I'm missing something here, that's not really what created this margin compression within this business. So what needs to happen here specifically for things to get better from a profitability standpoint? And I'm wondering if there are some things that you can do here on a more sort of accelerated time line in order to get sort of the cost structure rightsized and efficiencies out of your operations to get margins where they kind of need to be?

當然。我想如果我關注的是消防和緊急業務，對吧，這至少在我看來是推動公司內部價值的關鍵槓桿之一。我的意思是，如果我回顧過去，天哪，三年前，這家企業的 EBITDA 利潤率絕對是兩位數。過去三年來，成交量並沒有太大變化。因此，我們並不是在談論顯著的銷售壓縮，但利潤率顯然要低得多。您談到了採購方面的一些變化和設計方面的一些變化。我當然明白這將如何節省一些費用。但除非我在這裡遺漏了一些東西，否則這並不是造成該業務利潤壓縮的真正原因。那麼，從獲利的角度來看，為了讓事情變得更好，需要做些什麼呢？我想知道您是否可以在更快的時間線上做一些事情，以便調整成本結構並提高營運效率，從而獲得所需的利潤？

Yes, that's specific to the question you asked specifically what I tried to share, I didn't share, is that apparently was that it's around leaning activities. The margin compression was a lot around the top line staying flat and a lot of bodies being added to the business that didn't increase throughput. So you've got a lot of unobserved costs and additional people in these businesses over the last 3 years that eroded margins. So the idea is as you go like what the work we're doing at E1 is the value stream to get the throughput up, but also to get the processes to where you need less people with the same throughput or less people with more throughput. And that's one of the businesses where we have the greatest compression of margins over the last 3 years, where we have the team on the ground right now, we brought in support to work that process.

是的，這就是你問的具體問題，我試著分享，但我沒有分享，顯然是圍繞著學習活動。利潤率大幅壓縮，營收保持平穩，業務中增加了許多機構，但並沒有增加吞吐量。因此，在過去的三年裡，這些業務中存在大量未觀察到的成本和額外的人員，侵蝕了利潤。因此，我們的想法是，我們在 E1 所做的工作就是提高吞吐量的價值流，同時也讓流程達到需要更少人員但具有相同吞吐量或更少人員但具有更高吞吐量的程度。這是我們在過去三年中利潤壓縮最嚴重的業務之一，我們現在有團隊在當地，我們為該流程的工作提供了支援。

And when we talked about lead time reduction and then we talked about improving the businesses. That's one of the businesses that we are seeing the improvement that we'll need to get to double-digit to get back to restore the margins to where they were. So there is short term things. There are structural cost things that we're doing. But there's also just block and tackle, how do you look at the flow of the work through the plant, improve that flow and ultimately have less people to get the throughput and that's the process. And that's not -- it's an ongoing process, but it's something that we're already seeing benefit in the businesses that we're taking action in. So we're working that very hard.

當我們談到縮短交貨時間時，我們談到了改善業務。這是我們看到改善的業務之一，我們需要達到兩位數才能將利潤率恢復到原來的水平。所以有一些短期的事情。我們正在做一些結構性成本的事情。但也有一些問題，你如何看待整個工廠的工作流程，改進流程，並最終用更少的人來獲得吞吐量，這就是過程。這不是——這是一個持續的過程，但我們已經在我們正在採取行動的業務中看到了好處。

Our next question comes from the line of Jerry Revich with Goldman Sachs.

我們的下一個問題來自高盛的傑瑞·雷維奇（Jerry Revich）。

I'm wondering if we could just talk about the progress that you folks had made at Ocala. Can you talk about what's driven the ability to drive higher line production rates and in terms of the product simplification opportunity set in the longer term. Can you just talk about your approach to that element of the cost improvement and productivity story?

我想知道我們是否可以談談你們在奧卡拉取得的進展。您能否談談是什麼推動了提高生產線生產力的能力以及從長遠來看產品簡化的機會。您能否談談您對成本改進和生產力故事這一要素的方法？

Yes. I think that Ocala, which is the E1 business. We -- that -- we brought folks in to look at how we separate lines to value streams so we can get our line rates up by platform. So right now, part of the work that's being done is on aerials. We had an aspiration to get that liner up to 3 a week. And the process is, one, is getting clean around the throughput on aerials, but a lot of it's around how we manage complexity in the business. There's the growth, the building of backlog over the past 3 years, a lot of it's been built around custom units that -- and getting our costs right upfront, understanding what the market price of these are and getting engineering documentation, right? So there's -- we’re done on the upfront around process flow to -- from sales to engineering and from engineering to ops to help that, but it's part of the value stream.

是的。我認為是Ocala，也就是E1業務。我們邀請人們來研究如何將線路與價值流分開，以便我們可以透過平台提高線路費率。所以現在，正在進行的部分工作是在天線上。我們的願望是將班輪數量增加到每週 3 艘。這個過程是，第一，是圍繞天線的吞吐量進行清理，但很大程度上是圍繞我們如何管理業務的複雜性。過去三年來，積壓訂單不斷增加，其中許多都是圍繞定制單元構建的，並且預先確定我們的成本，了解這些產品的市場價格並獲取工程文檔，對嗎？因此，我們已經完成了從銷售到工程、從工程到營運的前期流程，以幫助實現這一目標，但這是價值流的一部分。

But also separating that line so we can guarantee a throughput versus a mixed use line where you're -- you don't have the transparency. That's a big part, a big part of it. And then the other piece that I'm very encouraged about is the work that's being done on our channels to be more active and engaging with our channels and development opportunities and improving our performance of our channels to help us not only get better quality of orders, but also to get the error rates and the defects in orders done so you can get to the build quicker with a better design upfront. So the work that's being done there is really the full value stream from initial how we do deal development in the field to how that converts into engineering to the manufacturing floor. And then once you get on the manufacturing floor, how do we make sure we have line of sight across the value stream of that business to get the throughput we need. And obviously, part of that how streaming is looking at your labor costs and figuring how do you lean down your operation to get as good or better throughput with less labor content.

但也將這條線分開，這樣我們就可以保證吞吐量，而不是你所在的混合用途線——你沒有透明度。這是很大一部分，很大一部分。另一件令我非常鼓舞的事情是我們在管道上所做的工作，使我們更加積極地參與我們的管道和發展機會，並提高我們管道的績效，不僅幫助我們獲得更好的訂單質量，而且還可以獲得已完成訂單中的錯誤率和缺陷，以便您可以透過更好的預先設計更快地進行建造。因此，那裡正在做的工作實際上是完整的價值流，從我們最初如何在現場進行開發到如何將其轉化為工程到製造車間。然後，一旦進入製造車間，我們如何確保我們能夠了解該業務的價值流，以獲得我們所需的吞吐量。顯然，串流媒體的一部分是考慮您的勞動力成本，並弄清楚如何精簡您的運營，以更少的勞動力內容獲得相同或更好的吞吐量。

And we brought in program management expertise to supplement the workforce, and we brought in lean expertise as well. We have a weekly cadence, where that I'm part of and the President of the business, Kent Tyler is part of, where we inspect the progress against committed timelines, and we're on top of that. It was one of the first plants I walked when I came here. I was there last week again. And while we still have work to do, there's been remarkable work done in getting that business streamlined to get us to a spot where we can get to the profitability that we deserve. So that's probably all the businesses that we've got. One of the ones, I think, we've seen the most advancement in at least in the 6 months or 5 months I've been here.

我們引入了專案管理專業知識來補充勞動力，我們還引入了精益專業知識。我們有一個每週的節奏，我和業務總裁 Kent Tyler 都參與其中，我們根據承諾的時間表檢查進展情況，我們是最重要的。這是我來到這裡時最先走過的植物之一。我上週又去了那裡。雖然我們仍有工作要做，但在簡化業務方面我們已經做了出色的工作，使我們能夠獲得應有的盈利能力。這可能就是我們擁有的所有業務。我認為，其中之一是我至少在我來這裡的 6 個月或 5 個月內看到了最大的進步。

And am I correct in thinking about the longer-term opportunity here, meaningful reduction in product variability and more -- through more rigorous order management system in terms of the level of customization. Is that opportunity that's in front of us? And if so, what's the time frame?

我對這裡的長期機會的思考是否正確，即通過在定制水平方面更嚴格的訂單管理系統來有意義地減少產品可變性等。這是擺在我們面前的機會嗎？如果是的話，時間範圍是多少？

Yes. I think that there's -- when you think about the optimization of the Fire business as a network, you have multiple businesses that today operate largely independently of one another in terms of how they do demand creation and demand and fulfillment. And certainly, the product designs and the engineering are also separate. When you think about a longer view and you think about this over probably a 2 to 3-year time horizon, there's looking at how you product platform across your entire business that you make sure that you keep the differentiation and the identity of the brand. So the channels have an ability to sell the value but also spec the value that creates that. But you also have an opportunity to take out tremendous complexity. And you also have an opportunity to look at your footprint that when you think about optimization of your footprint, what you do where and where your centers of excellence might be.

是的。我認為，當您將消防業務優化為網路時，您會發現現在有多個業務在如何創建需求以及滿足需求方面基本上彼此獨立運作。當然，產品設計和工程也是分開的。當你考慮更長遠的觀點時，你可能會考慮 2 到 3 年的時間範圍，你會著眼於如何在整個業務中建立產品平台，以確保保持品牌的差異化和身份。因此，通路有能力出售價值，但也有能力指定創造價值的價值。但您也有機會消除巨大的複雜性。當您考慮優化您的足跡時，您還有機會查看您的足跡，您在哪裡做什麼以及您的卓越中心可能在哪裡。

So those are all part of that same kind of philosophy around how do we think about being in a fire business versus being in 5 fire businesses, but also maintaining the strength of these brands because this is a brand driven business when you get down to the local markets. The last piece of that, it's obvious is if you think about engineering on a platform basis and commonality it should also present purchasing leverage opportunity for us -- improved purchasing leverage opportunity for us. As you look at commonizing a percentage of your design as much as you can, while again, maintaining that end market differentiation that you got to have for brands. So we're looking at that very -- obviously, right now, we're keenly focused on improving the performance of each business through simple lean implementation and some short-term activities. But the longer view, which was part of the strategic business reviews that we talked about is how do we think about taking complexity out of the Fire business and leveraging the strength we have in that business as we think about what we do well and where we do things well to be more efficient. So a big part of the future.

因此，這些都是同一哲學的一部分，圍繞著我們如何考慮從事消防業務與 5 種消防業務，同時保持這些品牌的實力，因為當你認真考慮時，這是一個品牌驅動的業務當地市場。最後一點，很明顯，如果你考慮基於平台和通用性的工程，它也應該為我們提供購買槓桿機會——為我們提供改進的購買槓桿機會。當你考慮盡可能地通用你的設計的一部分時，同時再次保持品牌所必須擁有的終端市場差異化。因此，我們正在非常關注這一點——顯然，現在我們非常專注於透過簡單的精實實施和一些短期活動來提高每項業務的績效。但從長遠來看，這是我們討論的戰略業務審查的一部分，我們如何考慮消除消防業務的複雜性並利用我們在該業務中的優勢，同時考慮我們擅長什麼以及我們在哪裡把事情做好，才能更有效率。所以未來的很大一部分。

And then just a shorter-term question. So in the last -- in the Great Recession, your fire truck demand peak to trough was down somewhere in the 30%, 35% range. Can you just talk about how the landscape compares today compared to what we saw in the last cycle? Is that the base case for the industry in your mind?

然後只是一個短期問題。因此，在過去的大衰退期間，消防車需求從高峰到低谷下降了 30% 到 35% 的範圍。您能談談今天的情況與我們在上一個週期中看到的情況相比如何嗎？這是您心目中該行業的基本情況嗎？

Yes. There's still a question that we're seeing some things push right in our book-to-bill. When you think about recreating that peak to trough this is just my personal opinion, the fundamentals around this economic situation we find ourselves in today is very, very different than that period of time. And whether we're going to -- I don't see evidence in our channel discussions and our order rates is going to necessarily say we're going to have that kind of peak to trough again. So maybe I'm a bit more optimistic than that we're not going to recreate that situation. But the underlying fundamentals of the economy, I think, are different now than they were at that time, even though there are pressures on municipal budgets, there's also -- we're not seeing that materialize to that extent right now. And Drew, I don’t know if you have any comments on that or thoughts on that?

是的。還有一個問題是，我們看到一些事情在我們的訂單到帳單中得到了正確的推動。當你考慮重現從高峰到低谷時，這只是我個人的觀點，我們今天所處的經濟狀況的基本面與那個時期非常非常不同。無論我們是否會——我在我們的通路討論中沒有看到證據，我們的訂單率必然表明我們將再次經歷這種從高峰到低谷的情況。所以也許我比我們不會重現那種情況更樂觀。但我認為，現在經濟的基本面與當時不同，儘管市政預算面臨壓力，但我們現在還沒有看到這種情況實現。德魯，不知道你對此有何評論或想法？

Well, clearly, we'll be watching the first I think pass that Q2 municipal tax receipts we took a look at and it’s on the same list that didn't show a decline yet in municipal budgets and any -- there was a slight decline, it was more than made up by federal stimulus. And I think maybe the conditions and appetite for federal backing of those funds might be a little different this time. But certainly, right now, we have -- we have an eye on it, and we just haven't seen anything initially to give us concern. And as Rod mentioned, the backlogs are currently very strong.

嗯，很明顯，我們將關注第一個我認為通過的第二季度市政稅收收入，它在同一個列表中，但市政預算尚未顯示下降 - 有輕微下降，這不僅僅是聯邦刺激措施所彌補的。我認為，這次聯邦政府支持這些基金的條件和興趣可能會有所不同。但當然，現在我們已經在關注它，只是最初沒有看到任何讓我們擔憂的東西。正如羅德所提到的，目前積壓的訂單非常多。

(Operator Instructions) Our next question comes from the line of Andy Casey with Wells Fargo Securities.

（操作員指示）我們的下一個問題來自富國銀行證券公司的安迪凱西（Andy Casey）。

Question on portfolio review portion of the goal to improve overall EBITDA margin to double digits a few years out. I'm trying to gauge what the top line may look like outside of market shift? Specifically, it was asked on the last call, but wanted to get a refresh on how you're viewing the Class A part of recreation against the work that's been done to improve returns there and the cyclical wave it's riding. And then also, are you looking at other meaningful parts of the overall REV portfolio for potential removal?

關於幾年後將整體 EBITDA 利潤率提高到兩位數的目標的投資組合審查部分的問題。我正在嘗試評估市場變化之外的頂線可能會是什麼樣子？具體來說，這是在上次電話會議中被問到的，但想了解您如何看待娛樂的 A 級部分，以及為提高回報而所做的工作以及它所經歷的周期性浪潮。另外，您是否正在考慮整個 REV 投資組合中其他有意義的部分是否有可能被刪除？

Yes, I'll make a comment and I'll offer it to Drew or Mark as well. I think that we're always going to look at our portfolio for opportunities to understand what's a good fit, what is core. We talked about a path to -- it has to have a path to double-digit earnings so I think that that's an element of that will always be in a process of understanding because we are -- at this point, a portfolio of companies, and it lends itself well to be able to kind of examine where you are on specifics, probably won't get into specifics, but I think the -- anything -- I think the overall long term, what I would say is that if we were to divest something, it would be complemented with a thought of how do we replace that revenue and do better on those earnings. So our overall pipeline goal is not to shrink. There'll always be a timing elements of divestiture acquisition. If you were to do something that it's not reasonable to time everything perfectly, but we certainly believe that being in a $2.5 billion to $3.5 billion range or more is where we want to be as we go through the journey of divestiture and acquisitions. We want to hold the top line and improve the earnings and then obviously move to what I would say is more of a core position, but we're still working on defining that core right now as a team and what we think that should be. I don't know Drew or Mark, if you have anything.

是的，我會發表評論，並將其提供給德魯或馬克。我認為我們總是會審視我們的產品組合，尋找機會來了解什麼是合適的、什麼是核心的。我們討論了一條通往兩位數收益的道路，所以我認為這將始終處於理解過程中，因為我們在這一點上是一個公司投資組合，它非常適合能夠檢查你在具體情況上的情況，可能不會涉及具體細節，但我認為——任何事情——我認為從總體來看，我想說的是，如果我們如果我們要剝離某些東西，我們會考慮如何替代該收入並在這些收入上做得更好。所以我們的整體管道目標是不收縮。剝離收購總是存在時間因素。如果你要做某事，那麼完美地安排一切時間是不合理的，但我們當然相信，在剝離和收購的過程中，我們希望達到 25 億至 35 億美元或更多的規模。我們希望保持營收並提高收益，然後顯然轉向我所說的更核心的位置，但我們現在仍在努力定義作為一個團隊的核心以及我們認為應該是什麼。我不認識德魯或馬克，如果你們有什麼的話。

Okay. And then you kind of touched on already, but I just wanted to ask it specifically that improved fire apparatus plant throughput. Should we view that as a signal that the inefficiencies that have been plaguing that part of the business are more or less behind the company. And you can -- as you've been talking about through some of the questions, really get to work on return improvement as opposed to trying to make up for some issues in the past.

好的。然後你已經提到了，但我只是想具體詢問一下提高消防設備工廠吞吐量的問題。我們是否應該將此視為一個訊號，表示一直困擾這部分業務的低效率問題或多或少已經落後於公司了？正如您在一些問題中所討論的那樣，您可以真正致力於改善回報，而不是試圖彌補過去的某些問題。

No. I'd say we're on a path of improvement, but we're certainly not finished with that improvement. There's great progress being made. But I believe that when you look at it on a 1, 2, 3 or 4, that process if it's done right never ends. And the process of relentlessly foreseeing cost out and efficiency and waste and complexity reduction, that's always going to go. I think we're well on the way. I think we've made big steps. But we're -- you can look at these businesses individually and still see tremendous opportunities for improvement. It just takes time and talent to get and rigor, and again, operationally capable people to do it. We're working. The problem is just there's opportunities there that still remain in front of us. So which speaks to, I think, the right kind of things we want to see in terms of margin opportunity in the businesses. So if we're going to get to double-digit earnings, a lot of that's going to be coming through our Fire business getting there. And we're working at right now to get that on the glide path. But it's not a do it and done. It's a continuous process of improvement. We're talking a lot about throughput and lean, but the larger design opportunities, design cost and purchasing are still opportunities as well that we haven't probably leaned into as much -- no pun intended -- gotten into as much at this point just because we're focused on the throughput side of it right now.

不，我想說我們正在改進的道路上，但我們肯定還沒有完成這種改進。正在取得巨大進展。但我相信，當你在 1、2、3 或 4 上查看它時，如果做得正確，這個過程就永遠不會結束。不斷預見成本降低、效率提高、浪費和複雜性降低的過程始終會持續下去。我認為我們進展順利。我認為我們已經邁出了很大的一步。但我們——你可以單獨審視這些業務，仍然看到巨大的改進機會。只需要時間和才能，並需要嚴格的、有操作能力的人員來做到這一點。我們正在工作。問題是我們面前仍然存在著機會。我認為，這說明我們希望在企業的利潤機會中看到正確的事情。因此，如果我們要實現兩位數的獲利，其中很大一部分將來自我們的消防業務。我們現在正在努力讓它走上下滑之路。但這並不是說做就做。這是一個持續改進的過程。我們談論了很多關於吞吐量和精益的問題，但是更大的設計機會、設計成本和採購仍然是我們可能還沒有投入那麼多的機會——沒有雙關語——在這一點上投入了那麼多只是因為我們現在專注於它的吞吐量方面。

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

隊列中沒有其他問題。我想將電話轉交給管理階層以供結束語。

So again, I appreciate it. I think from a -- where we expected the quarter to be and what -- I think we have made solid progress. I think that we continue to see momentum in the business. We still see a lot of work that we have in front of us. But again, we're very optimistic on the progress that we've made and what we see in front of us. I do want to thank the team again. I think that we've pushed hard for change and to do things differently. And I can tell you, I'm really pleased with the way the team has responded to those requests. We have a lot of work to do. But again, I think that the road ahead is going to be quite positive. We’ve just got to keep the fight and get through the situation that we're dealing with COVID and I think we'll see good days ahead of us. So I appreciate the questions, and we’ll look forward to talking to you again next quarter.

再次，我很感激。我認為從我們對本季的預期以及情況來看，我認為我們已經取得了堅實的進展。我認為我們繼續看到業務的成長勢頭。我們仍然看到擺在我們面前的工作還有很多。但我們再次對我們所取得的進展以及我們所看到的前景感到非常樂觀。我想再次感謝團隊。我認為我們一直在努力推動變革並以不同的方式做事。我可以告訴你，我對團隊回應這些請求的方式感到非常滿意。我們還有很多工作要做。但我再次認為，前面的道路將是非常積極的。我們必須繼續戰鬥，渡過我們正在應對新冠病毒的困境，我想我們會看到美好的日子就在前方。因此，我很感謝您提出的問題，我們期待下個季度再次與您交談。

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

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