Standard Motor Products Inc (SMP) 2022 Q2 法說會逐字稿

Good day, everyone, and welcome to the Standard Motor Products Second Quarter 2022 Earnings Call. (Operator Instructions) Please note, today's call will be recorded, and I will be standing by should you need any assistance.

大家好，歡迎參加 Standard Motor Products 2022 年第二季度財報電話會議。 （操作員說明）請注意，今天的通話將被錄音，如果您需要任何幫助，我將隨時待命。

And it is now my pleasure to turn the conference over to Tony Cristello, VP, Investor Relations. Please go ahead.

現在我很高興將會議轉交給投資者關係副總裁 Tony Cristello。請繼續。

Thank you, Chris. Good morning, everyone, and thank you for joining us on Standard Motor Products Second Quarter 2022 Earnings Conference Call. I'm Tony Cristello, Vice President of Investor Relations. And with me today are Larry Sills, Chairman of the Board; Eric Sills, President and CEO; Jim Burke, Chief Operating Officer; and Nathan Iles, Chief Financial Officer.

謝謝你，克里斯。大家早上好，感謝您參加標準電機產品 2022 年第二季度收益電話會議。我是投資者關係副總裁 Tony Cristello。今天和我在一起的還有董事會主席拉里·西爾斯； Eric Sills，總裁兼首席執行官； Jim Burke，首席運營官；和首席財務官 Nathan Iles。

On our call today, Eric will provide an overview of our performance in the quarter, followed by Jim, who will give an update on the operations and supply chain. Nathan will discuss our financial results, and Eric will then provide some concluding remarks and open up the call for Q&A.

在我們今天的電話會議上，Eric 將概述我們本季度的業績，隨後是 Jim，他將提供有關運營和供應鏈的最新信息。 Nathan 將討論我們的財務業績，然後 Eric 將提供一些總結性評論並開啟問答環節。

Before we begin this morning, I'd like to remind you that some of the material that we'll be discussing today may include forward-looking statements regarding our business and expected financial results. When we use words like anticipate, believe, estimate or expect, these are generally forward-looking statements.

在我們今天早上開始之前，我想提醒您，我們今天將討論的一些材料可能包括有關我們業務和預期財務結果的前瞻性陳述。當我們使用預期、相信、估計或期望等詞時，這些通常是前瞻性陳述。

Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us and certain assumptions made by us, and we cannot assure you that they will prove correct. You should also read our filings with the Securities and Exchange Commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements.

儘管我們認為這些前瞻性陳述中反映的預期是合理的，但它們是基於我們目前可獲得的信息和我們做出的某些假設，我們無法向您保證它們將被證明是正確的。您還應該閱讀我們提交給證券交易委員會的文件，以討論可能導致我們的實際結果與我們的前瞻性陳述不同的風險和不確定性。

I'll now turn the call over to Eric Sills, our CEO.

我現在將把電話轉給我們的首席執行官 Eric Sills。

Thank you, Tony, and good morning, everyone, and welcome to our second quarter earnings call. I'd like to begin, as I always do, by thanking all of our SMP employees worldwide. We continue to operate in a challenging and complex environment with more unprecedented influences than ever, and our people rise for the task every day, and I could not be more proud.

謝謝你，托尼，大家早上好，歡迎參加我們的第二季度財報電話會議。和往常一樣，我首先要感謝我們在全球範圍內的所有 SMP 員工。我們繼續在充滿挑戰和復雜的環境中運營，其影響比以往任何時候都多，我們的員工每天都在為這項任務奮勇前進，我感到無比自豪。

Overall, we are pleased with our top line numbers in the second quarter, marking 8 consecutive quarters of record-breaking sales. We were up 5.1% over last year's record period with both divisions showing gains. Let me review each segment, beginning with Engine Management.

總體而言，我們對第二季度的營收數字感到滿意，這標誌著連續 8 個季度創下銷售記錄。我們比去年創紀錄的時期增長了 5.1%，兩個部門都出現了增長。讓我回顧一下每個部分，從引擎管理開始。

Engine Management sales were up 3.7% against last year's second quarter, which itself was up nearly 35% from the previous year. The majority of the growth is attributed to sales from acquisitions made in the last year along with the benefits of pricing actions. Our aftermarket customer POS remained positive throughout the quarter, even when compared to outsized growth last year. This excludes our wire and cable product category which, after 2 years of abnormal growth, has now returned to its secular decline due to where it is in its life cycle.

Engine Management 的銷售額與去年第二季度相比增長了 3.7%，後者本身比去年增長了近 35%。大部分增長歸因於去年收購的銷售額以及定價行動的好處。即使與去年的大幅增長相比，我們的售後客戶 POS 在整個季度都保持樂觀。這不包括我們的電線電纜產品類別，該類別在經歷了 2 年的異常增長後，由於其處於生命週期中的位置，現在已經恢復了長期衰退。

But looking beyond -- but beyond looking at absolute POS information, we also received industry data that shows that our brands are outperforming in like-for-like product categories. This reflects the downstream share growth our customers have achieved due to our joint efforts at the street.

但除了查看絕對 POS 信息之外，我們還收到了行業數據，顯示我們的品牌在同類產品類別中表現出色。這反映了由於我們在街上的共同努力，我們的客戶已經實現了下游份額的增長。

Temperature Control continued at its solid pace. Sales in the quarter were up 7.5% versus last year, which surpassed the second quarter of 2020 by 47%. But the warm weather came early and strong. We enjoyed some new business from various customers. And here too, we saw the benefits of pricing. Looking at the balance of the season, although we are going up against the hottest on record last year and trying to predict the weather as a fool's errand, the heat has continued with no end in sight. Customer POS has remained robust, and so we're feeling pretty good about ongoing demand streams.

溫度控制繼續穩步推進。本季度銷售額與去年相比增長 7.5%，比 2020 年第二季度增長 47%。但溫暖的天氣來得早且強烈。我們享受了來自不同客戶的一些新業務。在這裡，我們也看到了定價的好處。從本賽季的平衡來看，儘管我們正與去年有記錄以來最熱的天氣對抗，並試圖預測天氣是一件愚蠢的事情，但熱度仍在持續，看不到盡頭。客戶 POS 一直保持強勁，因此我們對持續的需求流感覺非常好。

So let me talk for a bit about what we've been seeing in the market and how we are thinking about the future. I'll start with our aftermarket business, which makes up nearly three quarters of our total revenue. Looking at the overall backdrop, most trends are favorable. The vehicle fleet is aging, the lack of new vehicle availability is causing motorists to repair and maintain the vehicles they have. Gas prices peaked and are now starting to drop. And while we are heading into difficult economic times, the aftermarket tends to outperform in that environment.

因此，讓我談談我們在市場上看到的情況以及我們對未來的看法。我將從我們的售後市場業務開始，它占我們總收入的近四分之三。從整體背景來看，大多數趨勢都是有利的。車隊正在老化，缺乏新的車輛可用性導致駕駛者修理和維護他們擁有的車輛。天然氣價格見頂，現在開始下跌。雖然我們正進入困難的經濟時期，但售後市場在這種環境下往往表現出色。

Furthermore, our product categories, which are largely nondiscretionary and professionally installed, tend to fare even better. While DIY temporarily surged during the pandemic, the long-term trend has been towards DIFM. And we believe that our strategy, which focuses on the do-it-for-me market, continues to be very well received by our customers.

此外，我們的產品類別在很大程度上是非自由裁量和專業安裝的，往往表現更好。雖然 DIY 在大流行期間暫時飆升，但長期趨勢一直是 DIFM。我們相信，我們專注於“為我做”市場的戰略將繼續受到客戶的好評。

Additionally, our lesser reliance on the Far East for our supply of goods is a major advantage over some of our competitors. It has allowed us to ship at higher levels than many and has helped our customers better serve their end consumers. So while there will always be challenges, the marketplace and our position within it are in good shape.

此外，與我們的一些競爭對手相比，我們對遠東地區的商品供應依賴程度較低是一個主要優勢。它使我們能夠以比許多人更高的水平發貨，並幫助我們的客戶更好地服務於他們的最終消費者。因此，儘管總會有挑戰，但市場和我們在其中的地位都處於良好狀態。

Meanwhile, our specialized non-aftermarket businesses remain strong, and we are very excited about this strategic thrust. This business focuses on selling custom engineered products into niche on-highway and off-highway end markets such as heavy duty, construction and agricultural equipment, power sports, et cetera. We've been investing in its growth. And with our recent acquisition activity in this space, we now enjoy a run rate of about $300 million in sales.

同時，我們的專業非售後市場業務依然強勁，我們對這一戰略重點感到非常興奮。該業務專注於向利基公路和非公路終端市場銷售定制工程產品，例如重型、建築和農業設備、動力運動等。我們一直在投資於它的增長。通過我們最近在這一領域的收購活動，我們現在的銷售額約為 3 億美元。

Not only is it diverse in end markets, it is diverse geographically with strong sales in Europe and Asia as well as in North America. We are now in the process of integrating all the pieces so that we can begin to truly take advantage of the combined strengths and pursue cross-selling opportunities. And this is beginning to bear fruit. And as we look to the future, we see boundless opportunities.

它不僅在終端市場多樣化，而且在地域上也多樣化，在歐洲和亞洲以及北美都有強勁的銷售。我們現在正在整合所有部分，以便我們可以開始真正利用綜合優勢並尋求交叉銷售機會。而這正在開始結出碩果。當我們展望未來時，我們看到了無限的機會。

Next, I'll briefly discuss margins, though Jim and Nathan will delve deeper. Along with the rest of the world, we have been experiencing elevated costs in just about every input; raw materials, labor, transportation and so on. The industry has largely been receptive to passing it through, but there is always a lag and the cost increases keep coming.

接下來，我將簡要討論邊距，儘管 Jim 和 Nathan 會更深入地研究。與世界其他地區一樣，我們幾乎在每一項投入中都經歷了成本上升；原材料、人工、運輸等。該行業在很大程度上接受了通過，但總是存在滯後，成本不斷增加。

The latest challenge making the headlines is the increase in interest rates, which affect our receivables factoring programs with our larger accounts. We are working diligently to continue adjusting for these costs with more pricing phased in over the second half of the year, but they will impact our bottom line for the immediate future.

成為頭條新聞的最新挑戰是利率的上升，這會影響我們較大賬戶的應收賬款保理計劃。我們正在努力繼續調整這些成本，並在下半年逐步增加定價，但它們將影響我們近期的利潤。

At this point, I'll hand it over to Jim to review the details.

此時，我將把它交給 Jim 來查看詳細信息。

Okay. Thank you, Eric. From an operations perspective, I will highlight the inflationary pressures we are facing in the current environment and our action plans to address these headwinds.

好的。謝謝你，埃里克。從運營的角度來看，我將強調我們在當前環境中面臨的通脹壓力以及我們應對這些不利因素的行動計劃。

The PPI, or producer price index, is up 11.2% over the last 12 months and 18.2% for the current year annualized rate. For SMP, no single material type or commodity source is significant across the basket of material purchases. However, our cumulative material purchases will be somewhat representative of the U.S.-based producer price index.

PPI 或生產者價格指數在過去 12 個月中上漲了 11.2%，今年的年化率上漲了 18.2%。對於 SMP，沒有單一的材料類型或商品來源在整個材料採購籃子中具有重要意義。然而，我們的累計材料採購將在一定程度上代表美國的生產者價格指數。

Some of the significant drivers of these increases are transportation costs, both freight in and freight out. And while international container costs have trended down in '22, they still remain 3x historical levels. More local transportation costs are driven by escalating diesel fuel costs and driver shortages.

這些增長的一些重要驅動因素是運輸成本，包括進出運費。儘管國際集裝箱成本在 22 年呈下降趨勢，但仍保持 3 倍歷史水平。柴油燃料成本上升和司機短缺推動了當地交通成本的增加。

Commodity costs, such as copper, steel and aluminum appear to have peaked and begun to trend down, but year-to-date averages exceed costs in 2021 and prior. Overall, material purchases are significantly up as our vendors are facing many of these same pressures plus labor inflationary costs.

銅、鋼和鋁等大宗商品成本似乎已經見頂並開始呈下降趨勢，但今年迄今為止的平均水平超過了 2021 年及之前的成本。總體而言，由於我們的供應商面臨許多相同的壓力以及勞動力通脹成本，因此材料採購量顯著增加。

Non-material purchases, including utility costs, medical, insurance and professional fees, are experiencing double-digit increases. The obvious question next is what we are doing to alleviate these inflationary pressures. To begin, we look internally for cost reductions with make first buy efforts, low-cost vendor sourcing and also nearshore sourcing to reduce transportation costs. Value-added engineering efforts to add automation where feasible and other areas for cost reduction.

非物質採購，包括公用事業成本、醫療、保險和專業費用，正在經歷兩位數的增長。接下來顯而易見的問題是，我們正在做些什麼來緩解這些通脹壓力。首先，我們在內部通過“首次購買”努力、低成本供應商採購以及近岸採購來降低成本，以降低運輸成本。增值工程努力在可行的情況下增加自動化和降低成本的其他領域。

These internal efforts produce significant savings but are not sufficient alone to stem the tide of these increased cost drivers. In combination with our internal efforts, we are also passing along price increases to our customers. We have implemented price increases in late 2021 that have carried forward benefits in early '22 and our price changes implemented in '22.

這些內部努力產生了顯著的節省，但僅憑這些努力還不足以阻止這些增加的成本驅動因素。結合我們的內部努力，我們還將價格上漲轉嫁給我們的客戶。我們在 2021 年底實施了價格上漲，這在 22 年初帶來了好處，我們在 22 年實施了價格調整。

However, in general, our pricing actions have trailed the higher costs we have incurred. Based on the continued inflationary costs we are incurring for materials, labor and overhead and interest rates, we plan to implement further pricing actions going forward.

然而，總的來說，我們的定價行動已經落後於我們產生的更高成本。基於我們因材料、勞動力和間接費用以及利率而產生的持續通脹成本，我們計劃在未來實施進一步的定價行動。

Besides inflationary pressures, our supply chain logistics remain difficult due to extended lead times and delays transporting the product. We have a distinct advantage with our North American manufacturing footprint, which better assists us in managing our supply chain. Over the past year, we strategically increased inventory levels due to many of the challenges discussed, which we believe strengthened our partnership with our customers.

除了通脹壓力外，由於交貨時間延長和產品運輸延誤，我們的供應鏈物流仍然困難重重。我們在北美的製造足跡具有明顯的優勢，這可以更好地幫助我們管理我們的供應鏈。在過去的一年裡，由於所討論的許多挑戰，我們戰略性地提高了庫存水平，我們相信這加強了我們與客戶的合作夥伴關係。

We feel our inventory levels have peaked at the end of the second quarter and look for meaningful inventory level reductions over the second half of 2022. While these are very challenging times, it is through the dedication and determination of our employees that make SMP the #1 supplier in our industry.

我們認為我們的庫存水平在第二季度末達到頂峰，並希望在 2022 年下半年顯著降低庫存水平。雖然這是非常具有挑戰性的時期，但正是通過我們員工的奉獻精神和決心，使 SMP 成為#我們行業的 1 家供應商。

Thank you, and I will turn the call over to Nathan for his financial highlights.

謝謝，我將把電話轉給內森，了解他的財務亮點。

All right. Thank you, Jim. As we go through the numbers, I'll first give some color on sales and margins for each division, then look at the consolidated results, cover some key balance sheet and cash flow metrics and, finally, provide an update on our financial outlook for the full year in 2022.

好的。謝謝你，吉姆。在我們查看這些數字時，我將首先對每個部門的銷售額和利潤率進行一些說明，然後查看綜合結果，涵蓋一些關鍵的資產負債表和現金流量指標，最後提供我們財務前景的最新信息2022 年全年。

First, looking at Engine Management. You can see on the slide that net sales there in Q2 were $241.9 million, up $8.7 million or 3.7% versus the same quarter last year, with the increase a result of sales from acquisitions made last year and higher pricing. For the first 6 months, sales in Engine of $481.1 million were up 8.1%. And excluding sales from acquisitions and a reduction in sales from the loss of a customer, which we've now completely lapped, sales were up 2.6%, with the increase driven by higher pricing.

首先，查看引擎管理。您可以在幻燈片上看到，第二季度的淨銷售額為 2.419 億美元，與去年同期相比增長 870 萬美元或 3.7%，這是由於去年收購和更高定價帶來的銷售額增長。前 6 個月，Engine 的銷售額為 4.811 億美元，增長 8.1%。不包括收購帶來的銷售額和客戶流失導致的銷售額下降（我們現在已經完全覆蓋），銷售額增長了 2.6%，增長是由更高的定價推動的。

Looking at the margin. The second quarter gross margin rate for Engine Management was 25.8%, down from last year, but remember that last year's margin benefited from the impact of strong production to rebuild inventory levels as the economy reopened. This aside, our margin in the second quarter of 2022 was impacted by a number of things.

看著邊緣。發動機管理公司第二季度的毛利率為 25.8%，低於去年，但請記住，去年的利潤率得益於強勁的生產影響，隨著經濟重新開放，庫存水平得以重建。除此之外，我們在 2022 年第二季度的利潤率受到許多因素的影響。

First, we had some higher customer returns, which can be lumpy in nature based on customer return patterns. Second, we had continued pressure on costs from persistent inflation. Third, we incurred some higher freight expenses resulting from stocking higher inventory levels. And last, we continued to see a mix shift to more non-aftermarket sales as we've been discussing for some time now.

首先，我們有一些更高的客戶回報，根據客戶回報模式，這在本質上可能是不穩定的。其次，持續通脹對成本造成持續壓力。第三，由於庫存水平較高，我們產生了一些較高的運費。最後，正如我們已經討論了一段時間的那樣，我們繼續看到更多非售後市場銷售的混合轉變。

Engine's gross margin for the first 6 months was 26.6% and was down from last year for largely the same reasons given for the quarter. As a final comment on Engine margins, while our margin is down from last year, keep in mind that last year did not see the same inflationary pressures or supply chain costs now faced across the economy. And while we did pass on higher prices to customers during the quarter, we continue to pursue additional pricing actions to offset the continued inflation in our costs.

Engine 前 6 個月的毛利率為 26.6%，與去年相比有所下降，原因與本季度大致相同。作為對發動機利潤率的最後評論，雖然我們的利潤率比去年有所下降，但請記住，去年沒有看到與現在整個經濟體相同的通脹壓力或供應鏈成本。雖然我們在本季度確實將更高的價格轉嫁給了客戶，但我們繼續採取額外的定價行動來抵消我們成本的持續通脹。

Looking at Temperature Control. Net sales there in Q2 were up $7.9 million or 7.5%. And for the first 6 months, we're up $26.8 million or 15.9%, with the increase mainly reflecting a solid start to the season so far and higher pricing. Our gross margin rate for Temperature Control in the quarter was 26.7%, a decrease of 0.2 points from last year, while the gross margin rate for the first 6 months of 25.8% was down 0.6 points from last year. The slight decrease in margin for the quarter and first 6 months was due to inflation in our costs, and some higher freight expenses related to stocking higher levels of inventory to prepare for the summer season.

看溫度控制。第二季度的淨銷售額增長了 790 萬美元或 7.5%。前 6 個月，我們增加了 2680 萬美元或 15.9%，增長主要反映了本賽季迄今為止的良好開局和更高的定價。本季度溫控毛利率為26.7%，比去年下降0.2個百分點，而前6個月的毛利率為25.8%，比去年下降0.6個百分點。本季度和前 6 個月的利潤率略有下降是由於我們的成本膨脹，以及與庫存較高水平的庫存以準備夏季有關的一些較高的運費費用。

Turning to our consolidated results. Our consolidated net sales reflected the growth we saw in each division with Q2 up 5.1% versus last year and the first 6 months up 10.3% versus last year. Our consolidated gross margin rate was down for the quarter and first 6 months for the reasons noted before, but given our year-to-date growth in consolidated sales, we did report higher gross margin dollars for the first 6 months of the year despite a lower rate.

轉向我們的綜合結果。我們的綜合淨銷售額反映了我們在每個部門看到的增長，第二季度比去年增長 5.1%，前 6 個月比去年增長 10.3%。由於前面提到的原因，我們本季度和前 6 個月的綜合毛利率有所下降，但鑑於我們年初至今綜合銷售額的增長，我們確實報告了今年前 6 個月的毛利率較高，儘管較低的利率。

Moving now to SG&A expenses. Our consolidated SG&A increased in the quarter and the first 6 months as rapidly rising interest rates drove expenses from customer factoring programs higher, and we had additional costs from acquisitions made last year. Our consolidated SG&A expenses increased by $6.8 million in the quarter and included $4.7 million of higher factoring costs and $2.9 million of additional costs from acquisitions made last year. Excluding these items, our core SG&A expenses were down $0.8 million versus Q2 last year.

現在轉到 SG&A 費用。我們的綜合 SG&A 在本季度和前 6 個月有所增加，因為快速上升的利率推高了客戶保理計劃的費用，並且我們從去年的收購中獲得了額外成本。本季度我們的綜合 SG&A 費用增加了 680 萬美元，其中包括 470 萬美元的更高保理成本和 290 萬美元的額外收購成本。不包括這些項目，我們的核心 SG&A 費用與去年第二季度相比減少了 80 萬美元。

SG&A expenses for the first 6 months increased by $15.3 million and included $5.5 million of higher factoring costs and $6.5 million of additional costs from acquisitions. Excluding the factoring costs for the first 6 months, our SG&A as a percentage of sales would have been 18.5% and lower than last year.

前 6 個月的 SG&A 費用增加了 1530 萬美元，其中包括 550 萬美元的更高保理成本和 650 萬美元的額外收購成本。排除前 6 個月的保理成本，我們的 SG&A 佔銷售額的百分比為 18.5%，低於去年。

Looking at the bottom line, consolidated operating income, as shown here on the slide, was 7.8% of net sales for the quarter and 8% for the first 6 months of the year, and earnings per share and EBITDA were lower than last year for both the quarter and first 6 months for the reasons already discussed.

從底線來看，如幻燈片所示，合併營業收入佔本季度淨銷售額的 7.8% 和今年前 6 個月的 8%，每股收益和 EBITDA 低於去年同期由於已經討論過的原因，本季度和前 6 個月。

Turning now to the balance sheet. Accounts receivable of $229.7 million at the end of the quarter were up $49.1 million from December 2021, with the increase typical of the seasonal nature of the business and mainly a result of higher sales during the quarter. Inventory levels finished Q2 at $551.4 million, up $82.7 million from December 2021, with the increase a result of higher sales levels this year and a strategic investment in inventory to both make sure we meet our customers' delivery expectations and to buffer against supply chain volatility. As the end of the second quarter marks the peak of our seasonal working capital needs, we expect a reduction in inventory for the balance of the year, as Jim mentioned.

現在轉向資產負債表。本季度末的應收賬款為 2.297 億美元，比 2021 年 12 月增加了 4910 萬美元，增長是典型的業務季節性性質，主要是由於本季度銷售額增加。第二季度的庫存水平為 5.514 億美元，比 2021 年 12 月增加了 8270 萬美元，這是由於今年銷售水平的提高以及對庫存的戰略投資，以確保我們滿足客戶的交付預期並緩衝供應鏈波動.正如吉姆所說，由於第二季度末標誌著我們季節性營運資金需求的高峰期，我們預計今年剩餘時間的庫存將減少。

Looking at our cash flows. Our cash flow statement reflects cash used in operations for the first 6 months of $95.3 million as compared to cash generated of $23.2 million last year, with more cash used for accounts receivable stemming from management of our customer factoring programs in the prior year and more cash used for inventory for the reasons noted before.

看看我們的現金流。我們的現金流量表反映前 6 個月運營中使用的現金為 9530 萬美元，而去年產生的現金為 2320 萬美元，用於應收賬款的現金更多來自上一年對客戶保理計劃的管理，還有更多現金由於前面提到的原因，用於庫存。

Regarding capital expenditures, we continued to invest in our business and used $13.2 million of cash for CapEx during the first 6 months, up from $11.7 million used last year. Our financing activities included $11.8 million of dividends paid and another $25.6 million paid for repurchases of our stock. Financing activities also included $139.3 million of borrowings, which were used mainly to fund our operations, seasonal working capital requirements, strategic investments and returns to shareholders. While our borrowings were higher this year, we still finished the quarter with a low total debt leverage of 1.7x EBITDA.

關於資本支出，我們繼續投資於我們的業務，並在前 6 個月為資本支出使用了 1320 萬美元的現金，高於去年使用的 1170 萬美元。我們的融資活動包括支付 1180 萬美元的股息和另外 2560 萬美元用於回購我們的股票。融資活動還包括 1.393 億美元的借款，主要用於為我們的運營、季節性營運資金需求、戰略投資和股東回報提供資金。雖然今年我們的借款增加了，但我們在本季度末的總債務槓桿率仍然很低，僅為 1.7 倍 EBITDA。

Before I leave the topic of balance sheet and cash flows, I just want to reiterate that we were extremely pleased to enter into a new 5-year $500 million credit facility during the quarter. The new facility gives our business added flexibility and allowed us to fix a portion of our interest rates with a swap agreement during a time of rapidly rising rates. We expect to use the new facility to support our growth and continue to execute on strategic priorities, while continuing to return value to our shareholders. I'd like to thank our team and banking partners for helping us put the new facility in place.

在我離開資產負債表和現金流的話題之前，我只想重申，我們非常高興在本季度簽訂了一項新的 5 年期 5 億美元的信貸額度。新設施為我們的業務增加了靈活性，並允許我們在利率迅速上升的時期通過掉期協議確定部分利率。我們希望使用新設施來支持我們的增長並繼續執行戰略重點，同時繼續為我們的股東回報價值。我要感謝我們的團隊和銀行合作夥伴幫助我們建立新設施。

Finally, I want to give an update on our sales and profit expectations for the full year of 2022. First, let me note again that it's very difficult to forecast what will happen in this current environment where inflation is much higher than normal, and we're now seeing a rise in interest rates to address that inflation. Regarding our top line sales, we are maintaining the expectations we put forward at the beginning of the year, which is that we expect full year sales growth for 2022 to be in the low to mid-single digits.

最後，我想更新一下我們對 2022 年全年的銷售和利潤預期。首先，讓我再次指出，在當前通脹遠高於正常水平的環境下，很難預測會發生什麼，我們'現在看到利率上升以應對通貨膨脹。關於我們的頂線銷售，我們維持年初提出的預期，即我們預計 2022 年全年銷售增長將處於中低個位數。

With regard to margins, you can see from our results for the year so far that we continue to be under pressure from inflation in our costs, and that inflation continued to increase during the second quarter. Additionally, we expect interest rates will continue to rise, which will drive a further increase in our supply chain financing costs. As such, we are lowering our expectations for the year from a margin and profit perspective, and now expect consolidated gross margin will be approximately 27% and consolidated operating profit will be in the range of 7% to 8%.

關於利潤率，您可以從我們迄今為止的年度業績中看到，我們繼續面臨成本通脹的壓力，並且第二季度通脹繼續上升。此外，我們預計利率將繼續上升，這將進一步增加我們的供應鏈融資成本。因此，我們從利潤率和利潤的角度下調了對本年度的預期，現在預計綜合毛利率將約為 27%，綜合營業利潤將在 7% 至 8% 的範圍內。

While we expect our results to be lower than discussed previously, it is a result of persistent inflation and higher interest rates, both of which rose higher and more quickly than anyone had anticipated. As always, we look to pass higher costs on to our customers in the form of pricing, but we continue to be in an uncertain economic environment.

雖然我們預計我們的結果將低於之前討論的結果，但這是持續通脹和更高利率的結果，這兩者的上升速度都比任何人預期的都要高和快。與往常一樣，我們希望以定價的形式將更高的成本轉嫁給客戶，但我們仍處於不確定的經濟環境中。

To wrap up, while we faced several challenges during the quarter, we were pleased to continue to make progress expanding our business in new markets to aid our future growth. We also enhanced our liquidity and capital structure with our new credit facility and provided significant shareholder returns via share repurchases.

最後，雖然我們在本季度面臨多項挑戰，但我們很高興繼續取得進展，在新市場擴展業務以幫助我們未來的增長。我們還通過新的信貸額度增強了流動性和資本結構，並通過股票回購為股東提供了可觀的回報。

We remain confident in our ability to navigate the evolving landscape. And to that end, we announced this morning that our Board has approved a new $30 million share repurchase program, which we'll use in line with our capital allocation strategy.

我們仍然對我們駕馭不斷變化的環境的能力充滿信心。為此，我們今天早上宣布，我們的董事會已批准一項新的 3000 萬美元的股票回購計劃，我們將根據我們的資本分配策略使用該計劃。

Thank you all for your attention. I'll now turn the call back to Eric to wrap up.

謝謝大家的關注。我現在將電話轉回給 Eric 以結束。

Thank you, Nathan. So in closing, let me reiterate that we're pleased with where we're headed, and we surely acknowledge that there are many headwinds, including cost increases, supply chain issues and labor shortages. And there's also a great deal of uncertainty due to external factors such as the lingering impact of the pandemic and various geopolitical issues.

謝謝你，內森。最後，讓我重申，我們對我們的發展方向感到滿意，我們當然承認存在許多不利因素，包括成本增加、供應鏈問題和勞動力短缺。此外，受疫情影響揮之不去、各種地緣政治問題等外部因素影響，不確定性也很大。

We also understand that we are going up against some very difficult comps. We also recognize many favorable structural trends within our core aftermarket and exciting opportunities in new complementary markets. And therefore, while there can be volatility period to period, we are excited about the future.

我們也明白我們正在面對一些非常困難的比賽。我們還認識到我們核心售後市場中的許多有利的結構趨勢以及新的互補市場中令人興奮的機會。因此，雖然期間可能會出現波動，但我們對未來感到興奮。

And with that, I will turn it over to the moderator, and we will open it up for questions.

有了這個，我會把它交給版主，我們會打開它來提問。

(Operator Instructions) Our first question comes from Scott Stember from MKM Partners.

（操作員說明）我們的第一個問題來自 MKM Partners 的 Scott Stember。

Eric, can you maybe dig a little bit deeper into the Engine Management? You talked about how, I guess, if you strip out the wire and cable business, that you were running out positive at POS. Maybe just talk about that and what the impact from the wire and cable was. I think that's in the release, but maybe just talk about that a little bit.

埃里克，你能不能更深入地研究一下引擎管理？你談到了，我猜，如果你剝離電線和電纜業務，你在 POS 上的積極性已經耗盡。也許只是談談那個以及電線和電纜的影響是什麼。我認為這是在發布中，但也許只是談論一下。

Sure. Absolutely, Scott. Well, what we did see -- well, first of all, I think it's important to note, overall, as we look at POS, the absolute dollars of POS are very strong. So it's really about going up against a very difficult comp of the same period in 2021. But even on top of that, if you exclude the wire and cable portion of Engine Management, for those that we do get reported POS information, which is not the entire market, but it's certainly representative and directional, we continue to see Engine Management, again, excluding wire and cable, in the low single digits throughout the period.

當然。當然，斯科特。嗯，我們確實看到了——嗯，首先，我認為重要的是要注意，總的來說，當我們看 POS 時，POS 的絕對美元非常強勁。因此，這實際上是要與 2021 年同期進行非常困難的比賽。但即使在此之上，如果您排除引擎管理的電線和電纜部分，對於那些我們確實得到報告的 POS 信息的人來說，這不是整個市場，但它肯定具有代表性和方向性，我們繼續看到發動機管理（不包括電線和電纜）在整個期間處於低個位數。

The wire and cable piece, which we've historically been saying, and you've been following us for a very long time, has been in that high single-digit decline year-over-year. Coming out of the pandemic, largely because of the DIY search, really started to see very strong abnormal growth. That is behind us. It's returned to that high single-digit decline, albeit from a higher level than pre-pandemic. So it is having a drag overall in the Engine Management division.

我們歷史上一直在說的電線和電纜產品，並且您已經關注我們很長時間了，它的同比下降幅度一直在高個位數。從大流行中走出來，很大程度上是因為 DIY 搜索，真正開始看到非常強勁的異常增長。那是在我們身後。它恢復到了高個位數的下降，儘管是從比大流行前更高的水平。因此，它在引擎管理部門總體上受到了拖累。

Right. Got it. And regarding price increases, obviously, when you're putting through price increases for factoring, the catch-up effect is even tougher, right, because of the fact that it's an immediate impact on everything you have factored. But just maybe talk about the timing of these price increases. And assuming let's say rates were to level off here, how long would that take to be fully implemented into the income statement?

正確的。知道了。關於價格上漲，很明顯，當您為保理進行價格上漲時，追趕效應更加嚴重，對，因為它對您所保理的所有事物都有直接影響。但也許只是談論這些價格上漲的時間。假設利率在這裡趨於平穩，這需要多長時間才能完全落實到損益表中？

That's a very fair question. And first, I'd start by saying that factoring is one -- is only one of the inflationary costs that we're seeing, and we think about it really more holistically than that. And frankly, a lot of the other inflationary costs also kind of hit you in some ways unexpected.

這是一個非常公平的問題。首先，我首先要說保理是一個 - 只是我們所看到的通脹成本之一，我們實際上比這更全面地考慮它。坦率地說，許多其他通脹成本也以某種出乎意料的方式打擊了你。

There is always a lag between when we see the cost and when we are able to get them implemented, partly because there's a certain amount of work we need to do internally. And then there's always a lag for an effective date once delivered and agreed to by the customer. And that can take several months before it actually takes effect.

當我們看到成本和我們能夠實施它們之間總是存在延遲，部分原因是我們需要在內部完成一定數量的工作。一旦交付並得到客戶同意，生效日期總是會有延遲。這可能需要幾個月的時間才能真正生效。

So as I believe Jim mentioned or maybe it was Nathan, we did start putting through some price increases towards the end of last year. And we do have more in place to take effect over the second half of this year. They are phased in, but we do have some that are planned and in place.

所以我相信吉姆提到或者可能是內森，我們確實在去年底開始進行一些價格上漲。而且我們確實有更多的地方可以在今年下半年生效。它們是分階段實施的，但我們確實有一些計劃和到位。

Got it. And then on -- maybe on Temperature Control. Obviously, headlines are out there. This is obviously the hottest summer on record, and maybe talk about how inventory is in the channel and if maybe the demand is outstripping your ability to put product in?

知道了。然後——也許是溫度控制。顯然，頭條新聞就在那裡。這顯然是有記錄以來最熱的夏天，也許可以談談渠道中的庫存情況以及需求是否超出了您的產品投入能力？

Sure. I'll speak to the inventories in the field and Jim can speak to our ability to keep our shelves in good shape. But what we've seen over the last several months for those customers that we do have visibility into their inventory is really that their inventories are holding up nicely. Their sell-in is basically equaling sell-through. Their inventory is in a better position at the end of the quarter, which is the last data that we have, than it was at the same time in the previous year.

當然。我會談談現場的庫存，吉姆可以談談我們保持貨架良好狀態的能力。但在過去幾個月中，對於那些我們確實了解他們的庫存的客戶，我們看到的是他們的庫存確實保持得很好。他們的賣出基本上等於賣出。他們的庫存在本季度末處於更好的位置，這是我們掌握的最後一個數據，比去年同期要好。

So while the heat remains elevated, which is obviously very good for business, their shelves are in good shape. And Jim, maybe you can speak to keeping our shelves prepared for them.

因此，雖然熱量仍然很高，這顯然對業務非常有利，但他們的貨架狀況良好。還有吉姆，也許你可以談談為他們準備好我們的貨架。

Sure. Thank you, Eric. Yes. Scott, yes, we're very pleased with our performance to date. We've been filling in the mid-90s with Temperature Control. Obviously, you can see on the balance sheet, we do have raised inventory levels. So we feel pretty good. However, we react day-to-day with the production, the demand seems very strong, but we're still confident where we're meeting, this is now entering August. So another 2 months into the season, and we feel pretty good where we are.

當然。謝謝你，埃里克。是的。斯科特，是的，我們對迄今為止的表現非常滿意。我們在 90 年代中期一直在使用溫度控制。顯然，您可以在資產負債表上看到，我們確實提高了庫存水平。所以我們感覺還不錯。然而，我們每天都對生產做出反應，需求似乎非常強勁，但我們仍然有信心在哪裡開會，現在已經進入八月。所以又過了兩個月的賽季，我們現在感覺很好。

Got it. And just one last question, just to clarify is that the overall fundamental underpinnings of the business have not changed. This is obviously an inflation issue that we're dealing with and the -- I guess, the fundamental outlook here is unchanged.

知道了。最後一個問題，只是要澄清的是，業務的整體基本基礎沒有改變。這顯然是我們正在處理的通貨膨脹問題，而且我想，這裡的基本面前景沒有改變。

That's absolutely the case, Scott. And in many ways, this inventory is a very strong, stable industry -- that's the inventory. This industry is a very stable industry. And even as we head into some challenging potentially economic times, this industry does terrific in those types of situations. And the fundamentals of the industry are strong. I think the fundamentals of SMP are even stronger because we are very well positioned to really take advantage of that do-it-for-me market, which is where the growth is going to be.

絕對是這樣，斯科特。在很多方面，這種庫存是一個非常強大、穩定的行業——這就是庫存。這個行業是一個非常穩定的行業。即使我們進入一些具有挑戰性的潛在經濟時代，這個行業在這種情況下也確實很棒。該行業的基本面強勁。我認為 SMP 的基本面更加強勁，因為我們處於非常有利的位置，可以真正利用這個“為我而做”的市場，而這正是增長的所在。

The fact that our products are nondiscretionary, even if people are struggling perhaps with their own bank accounts, they need to repair their vehicles, and so they will be installing our parts. So the fundamentals are as solid as they've ever been.

事實上，我們的產品是非自由裁量的，即使人們可能在自己的銀行賬戶上苦苦掙扎，他們也需要修理他們的車輛，因此他們將安裝我們的零件。因此，基本面與以往一樣穩固。

(Operator Instructions) Our next question comes from Bret Jordan from Jefferies.

（操作員說明）我們的下一個問題來自 Jefferies 的 Bret Jordan。

You talked about customer returns in the quarter. Is there anything going on specifically there around either the market share or meaningful shifts in inventory?

您談到了本季度的客戶退貨。圍繞市場份額或庫存的有意義的變化，有什麼特別的事情嗎？

Yes. Bret, it's Nathan. No news really there other than we just had some higher returns in the quarter. Like I said, the returns can be lumpy. We do keep our accruals up to date, as you would expect. But just given changes in customer patterns from time to time, we did have a little bit more coming in this quarter than others.

是的。布雷特，我是內森。除了我們在本季度獲得了一些更高的回報之外，沒有真正的消息。就像我說的那樣，回報可能是不穩定的。正如您所期望的那樣，我們確實會及時更新我們的應計項目。但考慮到客戶模式的不時變化，本季度我們確實比其他季度要多一些。

Okay. And then I guess on the mix shift to obviously more of the non-aftermarket specialty lines impacting the gross margin rate, is it still seeing sort of a comparable EBIT margin rate from that business or is that not the case?

好的。然後我猜想在組合轉變到明顯更多影響毛利率的非售後專業線時，它是否仍然看到該業務的可比 EBIT 利潤率，還是不是這種情況？

Yes, that's right. You're still seeing a very comparable operating profit EBIT margin versus the aftermarket expected to still be in line with what we've said before. That said, we're seeing inflation challenges across the business, as we've already talked about. And so we had the same inflation pressures on that business as well.

是的，這是正確的。您仍然可以看到非常可比的營業利潤 EBIT 利潤率與預計仍與我們之前所說的售後市場一致。也就是說，正如我們已經談到的那樣，我們看到整個企業都面臨通脹挑戰。因此，我們對該業務也有同樣的通脹壓力。

Okay. And then last question, I guess, the 5.1% year-over-year increase. Could you sort of carve out what is units versus price in that? Obviously, a lot of talk of inflation, but can we sort of maybe try to quantify what the actual inflation contribution is to that growth rate in pricing?

好的。最後一個問題，我猜是同比增長 5.1%。你能弄清楚什麼是單位與價格嗎？顯然，有很多關於通貨膨脹的討論，但我們是否可以嘗試量化實際通貨膨脹對定價增長率的貢獻？

I'd have to give it to you more intuitively than with data, Bret. But there's so many moving pieces and with mix shifts going around, and we have some products that we sell for $1 and some that we sell for $1,000. So it's really hard to say. But I would say that the majority of the growth would be more priced than unit demand.

我必須比數據更直觀地給你，布雷特。但是有如此多的移動部件和混合變化，我們有一些產品售價為 1 美元，一些產品售價為 1,000 美元。所以真的很難說。但我會說，大部分增長的定價將高於單位需求。

Okay. But do you think units are up or do you think units are down, and this is all price? I mean it seems like at retail, it's mostly price, units likely down. Would that be the same here?

好的。但是你認為單位上漲還是下跌，這就是價格？我的意思是，在零售方面，主要是價格，單位可能會下降。這裡也一樣嗎？

I'd say roughly flat, give or take. Again, I don't have any information. But it's not -- the unit demand is not the needle mover here.

我會說大致持平，給予或接受。再說一次，我沒有任何信息。但事實並非如此——單位需求不是這裡的推動因素。

And our next question comes from Robert Smith from the Center for Performance Investing.

我們的下一個問題來自績效投資中心的羅伯特·史密斯。

You mentioned that there's some work that's stuck internally in trying to keep abreast of inflation and price increases. So is there anything that you guys can do, I mean, through AI or something to make that more robust and to be more current with trying to implement increases -- price increases?

你提到有一些工作在內部被困在試圖跟上通貨膨脹和價格上漲的步伐。那麼你們有什麼可以做的嗎，我的意思是，通過人工智能或其他東西來使它更強大，並在嘗試實施漲價時更及時——價格上漲？

I'm not sure -- you broke up a little bit -- you're asking about AI and artificial intelligence to be able to better predict cost changes, is that where you were?

我不確定——你們分手了一點——你問的是人工智能和人工智能能夠更好地預測成本變化，那是你所在的地方嗎？

Yes. Yes. So that you could get more of a handle on how to increase price more robustly, I mean, in that cadence, so to speak.

是的。是的。這樣你就可以更多地了解如何更穩健地提高價格，我的意思是，可以這麼說。

I just believe that we're in such unprecedented times, we've never seen anything like this with the different commodity changes, supply chain costs, freight, transportation, labor. It's caused, I think, the whole -- not just the industry, the whole world to be reactive rather than proactive. I wish we were able to be more proactive, but it's just so unprecedented that we're all just trying to keep up.

我只是相信我們正處於這樣一個前所未有的時代，我們從未見過這樣的事情，不同的商品變化、供應鏈成本、運費、運輸、勞動力。我認為，這導致整個行業——不僅僅是行業，整個世界都變得被動而不是主動。我希望我們能夠更加積極主動，但這是前所未有的，我們都只是想跟上。

Right. And do you see any changes in the landscape, so to speak, as far as acquisition possibilities?

正確的。就收購可能性而言，您是否看到景觀的任何變化？

Robert, this is Jim Burke. As we've said in previous calls that are there, we're always staying abreast of opportunities that are there. We stay focused in the 2 primary categories that we're in, but we're -- we have opportunities with the non-aftermarket business, niche business that we've picked up, where the last year, we picked up Trombetta and Stabil in the sub-sensor business.

羅伯特，這是吉姆·伯克。正如我們在之前的電話會議中所說的那樣，我們總是跟上那裡的機會。我們始終專注於我們所在的兩個主要類別，但我們在非售後市場業務、利基業務方面擁有機會，我們已經獲得了機會，去年，我們獲得了 Trombetta 和 Stabil在子傳感器業務中。

So we're looking at everything. We have a team in place. And I'd say it's competitive, but we're prudent and staying within our key categories.

所以我們正在查看所有內容。我們有一個團隊。我會說這是有競爭力的，但我們很謹慎，並保持在我們的關鍵類別之內。

Yes. And what about the question of leveraging the balance sheet? I mean you're comfortable where you are? And how much further might you be able to go?

是的。那麼利用資產負債表的問題呢？我的意思是你在哪裡舒服嗎？你還能走多遠？

Robert, it's Nathan. I mean we're certainly comfortable with where we are now. I mentioned our leverage ratio of 1.7x is certainly still very healthy. Jim talked about M&A, and we've always said that if there was something very interesting that was the perfect fit for the business, we could certainly lever up to 3x EBITDA, but it would have to really, like I said, be the perfect fit for the business.

羅伯特，我是內森。我的意思是，我們當然對我們現在所處的位置感到滿意。我提到我們 1.7 倍的槓桿率當然仍然非常健康。吉姆談到了併購，我們一直說，如果有什麼非常有趣的東西非常適合業務，我們當然可以利用高達 3 倍的 EBITDA，但它必須真的，就像我說的那樣，是完美的適合業務。

And our next question comes from Daniel Imbro from Stephens Inc.

我們的下一個問題來自 Stephens Inc. 的 Daniel Imbro。

Nathan, I want to follow up on Scott's question earlier around the factoring cost. I guess, one, could we just frame up or quantify how much the financing costs within SG&A were up year-over-year in the second quarter?

內森，我想跟進斯科特早些時候關於保理成本的問題。我想，第一，我們能否確定或量化第二季度 SG&A 的融資成本同比增長多少？

Yes, Daniel. So I think, like I said, let me just get the numbers. So in the quarter, our factoring costs were up $4.7 million versus last year. And for the first 6 months, they were up $5.5 million versus last year.

是的，丹尼爾。所以我想，就像我說的，讓我得到數字。因此，在本季度，我們的保理成本比去年增加了 470 萬美元。前 6 個月，他們比去年增加了 550 萬美元。

And then within your guidance, you mentioned you expected a headwind increase? I guess, are you just -- you're assuming further rate increases? Any help quantifying kind of what you guys have baked into that op margin guidance, just so we can get a sense for what underlying SG&A margin is doing?

然後在你的指導下，你提到你預計逆風會增加？我想，你只是——你假設利率會進一步上漲嗎？任何幫助量化你們在該運營利潤率指導中所包含的內容，以便我們了解潛在的 SG&A 利潤率在做什麼？

Right. Yes. And so we're looking at the forward interest rate curves like everybody else is, which is now baking in the most recent Fed guidance around their future increases. The way we tend to think about it at a high level is that we sell roughly $800 million of our receivables each year, and so a 1% increase in rates would be about $8 million of an impact to us. And so as rates have gone up really from almost 0 a couple of years ago to where they are now, you can start to see that impact showing up.

正確的。是的。因此，我們正在像其他人一樣關注遠期利率曲線，現在美聯儲關於未來加息的最新指導正在烘烤。我們傾向於從高水平考慮它的方式是，我們每年出售大約 8 億美元的應收賬款，因此利率增加 1% 將對我們產生約 800 萬美元的影響。因此，隨著利率從幾年前的幾乎為零上升到現在的水平，您可以開始看到這種影響正在顯現。

Helpful. Maybe shifting over to the revenue guide. I think you called for low to mid-single-digit increase, and that implies pretty flat, almost negative top line growth in the back half, Nathan. If we're passing through additional price increases, which Eric mentioned, and POS trends are still up, I guess, are you just assuming a pretty meaningful volume slowdown in the coming quarters? Or how do we get to that back half implied revenue guide?

有幫助。也許轉向收入指南。我認為你要求低到中個位數的增長，這意味著後半部分收入增長相當平緩，幾乎為負，內森。如果我們經歷了埃里克提到的額外價格上漲，並且 POS 趨勢仍在上升，我猜，你是否只是假設未來幾個季度的銷量會出現相當大的放緩？或者我們如何獲得後半部分隱含收入指南？

So yes, Dan, like I think -- like we talked about earlier in the year, we're still in uncertain times. I think if you listen to a lot of the noise on Wall Street right now, a lot of folks are calling for a recession at some point. And I think we did expect things to slow down. We've been at such high levels for our industry versus where we've been historically the last couple of years that we would expect things to sort of normalize and level off and come back down a little bit.

所以是的，丹，就像我想的那樣——就像我們在今年早些時候談到的那樣，我們仍處於不確定時期。我認為如果你現在聽到華爾街的很多噪音，很多人都在呼籲經濟衰退。我認為我們確實預計事情會放緩。與過去幾年的歷史水平相比，我們的行業處於如此高的水平，我們預計事情會趨於正常化並趨於平穩並回落一點。

Also, we recognize where we are in the first half of the year, up 10%. A good chunk of that is acquisitions that we didn't have in last year. We've now lapped that essentially. And so now that becomes apples-to-apples going forward.

此外，我們認識到我們在今年上半年所處的位置，增長了 10%。其中很大一部分是我們去年沒有的收購。我們現在基本上已經掌握了這一點。所以現在這變成了蘋果對蘋果的未來。

That's helpful. And then, Eric, maybe last one. I think in your prepared remarks, you mentioned your brands are outperforming. I guess can you share any data or color on how your market share is trending within your core categories? What kind of share do you have with your core customers in those categories and kind of what's left, if there's anything incremental to gain?

這很有幫助。然後，埃里克，也許是最後一個。我認為在您準備好的評論中，您提到您的品牌表現出色。我想你能分享任何關於你的市場份額在你的核心類別中的趨勢的數據或顏色嗎？在這些類別中，您與您的核心客戶有什麼樣的份額？如果有什麼增量可獲，還剩下什麼？

Well, it's very difficult to quantify market share in this space, especially because our categories are so broad and we have so many. But what the industry associations have begun to publish is subproduct category comparisons where we're able to see our demand throughout the entire customer base, essentially every customer is reporting and how we are doing vis-à-vis the rest of the market in the same product category.

嗯，很難量化這個領域的市場份額，特別是因為我們的類別非常廣泛而且我們有這麼多。但是行業協會已經開始發布的是子產品類別比較，我們可以在其中看到我們在整個客戶群中的需求，基本上每個客戶都在報告，以及我們相對於其他市場的表現如何相同的產品類別。

And so it basically allows you to not just look at your own POS, but allows you to look at how you're doing vis-à-vis the rest of the market. And in most of the cat -- they don't do all of our categories, but in most of the ones that they do and they share with us, we tend to be outperforming the rest of the market, which is indicative of a share gain to us.

因此，它基本上讓您不僅可以查看自己的 POS，還可以查看您相對於其他市場的表現。在大多數貓中——它們並沒有做我們所有的類別，但在他們做的和他們與我們分享的大多數類別中，我們的表現往往優於市場的其他部分，這表明了份額給我們帶來好處。

It's very difficult to say we are x percentage of the market because there are just so many subcategory competitors and very difficult to quantify. But we do believe that we are making share gains.

很難說我們佔市場的 x 百分比，因為子類別的競爭對手太多，而且很難量化。但我們確實相信我們正在獲得份額。

And it does appear there are no further questions over the line at this time.

目前看來確實沒有進一步的問題。

Okay. We want to thank everyone for participating in our conference call today. If you have any further questions, our contact information is available on our press release or Investor Relations website. We hope you have a great day. Thanks.

好的。我們要感謝大家今天參加我們的電話會議。如果您有任何其他問題，請在我們的新聞稿或投資者關係網站上找到我們的聯繫信息。我們希望你有一個美好的一天。謝謝。

Thank you.

謝謝你。

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連接。