Standard Motor Products Inc (SMP) 2022 Q4 法說會逐字稿

Good day, everyone, and welcome to the Standard Motor Products Fourth Quarter 202 Earnings Call Webcast. (Operator Instructions) Later, we will open the phone lines for questions-and-answer session. (Operator Instructions) Please note today's call will be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to Tony Cristello, Vice President of Investor Relations. Please go ahead.

大家好，歡迎收看 Standard Motor Products 第四季度 202 財報網絡直播。 （操作員說明）稍後，我們將打開電話線進行問答環節。 （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。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, [Operator]. Good morning, everyone, and thank you for joining us on Standard Motor Products Fourth 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，[運營商]。大家早上好，感謝您參加標準汽車產品公司 2022 年第四季度收益電話會議。我是投資者關係副總裁 Tony Cristello。今天和我一起的是董事會主席拉里·西爾斯 (Larry Sills)；埃里克·西爾斯，總裁兼首席執行官；吉姆·伯克，首席運營官；和首席財務官 Nathan Iles。

In conjunction with our reported financial results, we published a separate press release earlier this morning announcing the creation of a new segment, Engineered Solutions, and the renaming of our existing segments. In addition to the press release, we posted a supplementary slide presentation to the IR website, providing more information on these changes.

結合我們報告的財務業績，我們今天早上早些時候發布了一份單獨的新聞稿，宣布創建一個新的部門，工程解決方案，並重新命名我們現有的部門。除了新聞稿外，我們還在 IR 網站上發布了補充幻燈片演示，提供了有關這些變化的更多信息。

On our call today, Eric will provide an overview of our performance in the quarter, and Nathan will then discuss our financial results. Eric will then give an overview in greater detail on our newly cast segments and the underlying strategy before some concluding remarks and opening the call up 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，然後 Nathan 將討論我們的財務業績。然後，埃里克 (Eric) 將更詳細地概述我們的新演員陣容和基本戰略，然後再發表一些總結性意見並開啟問答環節。

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. 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.

在今天上午開始之前，我想提醒您，我們今天要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。當我們使用諸如預期、相信、估計或期望之類的詞時，這些通常是前瞻性陳述。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。

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

您還應該閱讀我們提交給美國證券交易委員會的文件，其中討論了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。我現在將電話轉給我們的首席執行官 Eric Sills。

Thank you, Tony, and good morning, and welcome to our Fourth Quarter Earnings Call. I'd like to begin, as I always do, by recognizing all of the SMP employees globally. These last few years have been a wild ride, and our people have helped us navigate it all outperforming many of our peers and emerging a stronger company forward for it. So thank you, everybody.

謝謝托尼，早上好，歡迎來到我們的第四季度財報電話會議。一如既往，我想首先表彰全球所有 SMP 員工。過去幾年是一段艱難的旅程，我們的員工幫助我們駕馭了這一切，表現優於許多同行，並為此成為一家更強大的公司。所以謝謝大家。

As Tony mentioned, first, we'll review the business with some insights into the future, but I'm also very excited to discuss the resegmentation of our business, which I'll cover later on the call. Overall, we are pleased with our top line performance. For the full year, we were up 5.6% over 2021 with both divisions showing games. As sales in the fourth quarter did fall back slightly, down 0.5 point, which is best explained by segments, so let's get right into that starting with Engine Management.

正如 Tony 提到的，首先，我們將回顧業務並對未來有一些見解，但我也很高興討論我們業務的重新細分，我將在稍後的電話會議上介紹。總的來說，我們對我們的頂級表現感到滿意。全年來看，我們比 2021 年增長了 5.6%，兩個部門都有比賽。由於第四季度的銷售額確實略有回落，下降了 0.5 個百分點，細分市場對此做出了最好的解釋，所以讓我們從引擎管理開始。

For the full year, Engine Management sales were up 4%, but were down a bit over 1% in the quarter. This was largely due to going up against a difficult comparison as 2021 was very strong, but was also due in part to some customer ordering patterns, which can flux slightly quarter-to-quarter. However, as you look at customers' POS, their sell-through throughout the quarter continued to be strong, which, excluding our wire business, showed nice gains over the prior year. Not only does this demonstrate the ongoing health of the marketplace and the continued success of our programs with our customers, but also tends to be a leading indicator of future orders to us.

全年來看，發動機管理部門的銷售額增長了 4%，但本季度下降了 1% 以上。這主要是由於 2021 年的表現非常強勁，因此很難進行比較，但也部分是由於某些客戶訂購模式可能會隨季度略有變化。然而，當您查看客戶的 POS 時，他們整個季度的銷售量繼續保持強勁，不包括我們的電匯業務，與去年同期相比取得了可觀的增長。這不僅證明了市場的持續健康和我們與客戶的計劃的持續成功，而且往往是我們未來訂單的領先指標。

Temperature Control continued to be strong, surpassing last year's sales by 5.2% in the quarter. It's important to note that Q4 is a light quarter for this seasonal category, yet it did reflect the ongoing robust pace as we ended up nearly 10% for the full year. Included in these overall numbers is our performance in our non-aftermarket business, what we are now calling Engineered Solutions, which I will explain in greater detail after Nathan reviews the numbers.

溫度控制業務繼續保持強勁勢頭，本季度銷售額比去年同期增長 5.2%。重要的是要注意，第四季度是這個季節性類別的輕量季度，但它確實反映了持續強勁的步伐，因為我們全年增長了近 10%。這些總體數字中包括我們在非售後市場業務中的表現，我們現在稱之為工程解決方案，我將在 Nathan 查看這些數字後更詳細地解釋。

Our sales for the year showed strong gains over the previous year. We saw the benefit from acquisitions, though partially offsetting this was the temporary reduction of business with a specific account as they adjusted their build schedules. We remain very excited about this new channel as highly complementary to our aftermarket business, and you'll be hearing a lot more about it.

我們今年的銷售額比上一年表現出強勁的增長。我們看到了收購帶來的好處，儘管部分抵消了這一點，但由於他們調整了構建計劃，特定客戶的業務暫時減少了。我們對這個與我們的售後市場業務高度互補的新渠道感到非常興奮，您會聽到更多關於它的信息。

Moving to profit. Margins have continued to present a challenge. I'll touch on it and Nathan will delve deeper. Along with the rest of the world, all year long, we experienced elevated costs across many inputs. The industry has been largely receptive to passing it through, though there is always a lag in timing. Meanwhile, as we've been discussing, the rapid increase in interest rates, which affect our customer factoring programs is creating a significant headwind. And while we are working diligently to adjust work both through cost reduction and pricing initiatives, it is impacting our bottom line, as Nathan will speak to.

轉向盈利。利潤率繼續構成挑戰。我會談到它，內森會更深入地研究。與世界其他地區一樣，一整年，我們在許多投入方面都經歷了成本上升。儘管時間總是滯後，但該行業在很大程度上已經接受了它的通過。與此同時，正如我們一直在討論的那樣，影響我們客戶保理計劃的利率迅速上升正在造成重大阻力。雖然我們正在努力通過降低成本和定價舉措來調整工作，但這正在影響我們的底線，正如 Nathan 將要談到的那樣。

Here again, it's important to note that 2021 was the anomaly. As we have been explaining throughout 2021, we were enjoying many nonrecurring benefits of emerging from the COVID lockdowns. So as you look at our non-GAAP operating profit, at 8.2%, they were in line with pre pandemic levels, and that is in the face of surging inflation and interest. 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 about 80% of our total revenue.

同樣，重要的是要注意 2021 年是異常情況。正如我們在整個 2021 年一直在解釋的那樣，我們正在享受從 COVID 封鎖中脫穎而出的許多非經常性好處。因此，當您查看我們的非 GAAP 營業利潤時，為 8.2%，這與大流行前的水平一致，而且是在通脹和利率飆升的情況下。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，該業務約占我們總收入的 80%。

The basic overall backdrop continues to show favorable trends. The vehicle fleet is aging, new vehicle availability while improving continues to be tight and is causing motorists to repair and maintain the vehicle they have. Gas prices have normalized and miles driven remains high. There's obviously a lot of concern about the potential of an economic downturn, but the aftermarket tends to outperform in those times as people continue to need their vehicles to go about their lives and our categories tend to do even better as they are nondiscretionary in nature. The customer's vehicle is not operating properly and the repair is required.

基本的整體背景繼續呈現良好趨勢。車隊正在老化，新車的可用性在改善的同時繼續緊張，並導致駕駛者修理和維護他們擁有的車輛。汽油價格已經正常化，行駛里程仍然很高。顯然人們對經濟衰退的可能性有很多擔憂，但售後市場在那個時候往往表現出色，因為人們繼續需要他們的車輛來過他們的生活，而我們的類別往往做得更好，因為它們本質上是非自由裁量權的。客戶的車輛運行不正常，需要維修。

Additionally, our go-to-market strategy continues to resonate with our customers. 2022 set a high watermark for customer awards, reflecting the recognition of the value we provide and the positive POS results suggest ongoing demand strength. So while there will always be challenges, the marketplace and our position within it are very strong.

此外，我們的上市戰略繼續引起客戶的共鳴。 2022 年為客戶獎項設置了高水位線，反映了對我們提供的價值的認可，積極的 POS 結果表明持續的需求強度。因此，儘管挑戰總是存在，但市場和我們在其中的地位非常強大。

Meanwhile, our Engineered Solutions business has remained robust, and we are very excited about where we're headed with this strategy. After several years in the making, we have built this into a sizable global business selling into diverse end markets. We believe that we have now reached the critical mass to be a meaningful supplier to a broad array of blue-chip customers and believe that the various pieces we have put together are really opening doors. So again, you'll hear more about this after Nathan reviews the numbers. Nathan.

與此同時，我們的工程解決方案業務一直保持強勁，我們對這一戰略的發展方向感到非常興奮。經過數年的醞釀，我們已將其打造成一個規模龐大的全球企業，向不同的終端市場銷售產品。我們相信，我們現在已經達到了成為眾多藍籌客戶有意義的供應商的臨界質量，並且相信我們組合在一起的各個部分確實在打開大門。同樣，在 Nathan 查看這些數字後，您會聽到更多相關信息。內森。

All right. Thank you, Eric. 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 our expectations for the Full Year of 2023.

好的。謝謝你，埃里克。在我們查看這些數字時，我將首先給出每個部門的銷售額和利潤率的顏色，然後查看合併結果，涵蓋一些關鍵的資產負債表和現金流量指標，最後提供我們對 2023 年全年的預期.

First, looking at Engine Management. You can see on this slide that Q4 net sales of $242.4 million were down slightly versus the same quarter last year, but this year up against a difficult comparison in Q4 '21, where sales were up almost 6%. For the full year, sales of engine of $975.2 million were up 4% with the increase driven primarily by sales from acquisitions made last year, higher pricing, and continued strong demand.

首先，看看引擎管理。您可以在這張幻燈片上看到，第四季度的淨銷售額為 2.424 億美元，與去年同期相比略有下降，但今年與 21 年第四季度的艱難比較相比，銷售額增長了近 6%。全年，發動機銷售額為 9.752 億美元，增長 4%，增長的主要原因是去年收購的銷售額、更高的定價和持續強勁的需求。

Looking at the margin for Engine, the fourth quarter gross margin rate was 28.5%, up 9 points from last year as a combination of our cost savings efforts and pricing actions taken in the second half of the year overcame some of the inflationary pressures we've been experiencing. However, Engine's gross margin for the full year was down mainly due to the higher costs we experienced across all inputs during the year as a result of persistent inflation.

從引擎的利潤率來看，第四季度的毛利率為 28.5%，比去年上升 9 個百分點，這是因為我們在下半年採取的成本節約措施和定價措施相結合，克服了我們的一些通脹壓力。一直在經歷。然而，Engine 的全年毛利率下降主要是由於持續的通貨膨脹導致我們年內所有投入的成本增加。

Temperature-controlled net sales in Q4 2022 were up $3.1 million or 5.2%, for the full year were up $33.9 million or 9.7%, with the increases mainly reflecting a very strong summer season and higher pricing, both of which helped the division to outpace a record year last year. The gross margin rate for temperature control in the quarter was 26.2%, a decrease of 1.4 points from last year, while the gross margin rate for the full year of 26.8% was down 0.5 points from last year. The decrease in margin for the quarter was mainly due to the unfavorable mix of sales as the selling season came to an end, but also partly due to some unfavorable fixed cost absorption from lowering inventory levels. The slight decrease in margin for the full year was mainly due to cost inflation, like I noted for the Engine segment.

2022 年第四季度溫控淨銷售額增長 310 萬美元或 5.2%，全年增長 3390 萬美元或 9.7%，增長主要反映了非常強勁的夏季和更高的定價，這兩者都幫助該部門超越去年是創紀錄的一年。本季度溫控毛利率為26.2%，較去年下降1.4個百分點，全年毛利率為26.8%，較去年下降0.5個百分點。本季度利潤率下降主要是由於銷售旺季結束時不利的銷售組合，但也部分是由於庫存水平下降導致一些不利的固定成本吸收。全年利潤率的小幅下降主要是由於成本上漲，就像我在發動機部門指出的那樣。

Before I move to the consolidated numbers, I want to make two points on our margins. First, we noted over the course of 2022, the impacts of inflation across all input costs. While we have seen some moderation in inflation on a number of inputs, inflation in general is still higher than normal. To offset this inflation, our engineering and operations teams continue to do an excellent job executing our sourcing and in-house manufacturing programs to lower our costs, and these cost savings efforts, combined with pricing, helped us improve our margins throughout the second half of the year in 2022.

在我轉向合併數字之前，我想在我們的利潤率上提出兩點。首先，我們注意到在 2022 年期間，通貨膨脹對所有投入成本的影響。雖然我們看到一些投入的通脹有所緩和，但總體通脹仍高於正常水平。為了抵消這種通貨膨脹，我們的工程和運營團隊繼續出色地執行我們的採購和內部製造計劃以降低我們的成本，這些成本節約措施與定價相結合，幫助我們在整個下半年提高了利潤率2022年。

Second, I noted Temp Control's Q4 margin was impacted by unfavorable fixed cost absorption related to lowering inventory levels. As you know, we strategically increased our inventories in both 2021 and 2022 to manage supply chain volatility. Now that we are seeing things stabilize, we expect to lower inventories in 2023, which will cause some headwinds on our margin as we begin the year.

其次，我注意到 Temp Control 的第四季度利潤率受到與降低庫存水平相關的不利固定成本吸收的影響。如您所知，我們在 2021 年和 2022 年都戰略性地增加了庫存，以應對供應鏈的波動。現在我們看到情況趨於穩定，我們預計 2023 年會降低庫存，這將在年初對我們的利潤率造成一些不利影響。

Turning now to consolidated results. Our consolidated net sales for the fourth quarter were essentially flat with last year, while full year sales were up 5.6%, reflecting the impact of sales from acquisitions, higher pricing, and continued strong demand. Our consolidated gross margin rate was up for the quarter, driven by the higher margin engine management. And for the full year, our gross margin rate was down 1.1 points to 27.9%, largely as a result of the cost inflation I mentioned before, but we were pleased to report higher gross margin dollars on the back of strong sales growth.

現在轉向綜合結果。我們第四季度的綜合淨銷售額與去年基本持平，而全年銷售額增長 5.6%，反映了收購、更高定價和持續強勁需求帶來的銷售影響。在利潤率較高的引擎管理的推動下，我們本季度的綜合毛利率有所上升。全年，我們的毛利率下降了 1.1 個百分點至 27.9%，這主要是由於我之前提到的成本通脹，但我們很高興地報告，在強勁的銷售增長的支持下，毛利率有所提高。

Moving to SG&A expenses. Our consolidated SG&A expenses increased for both the quarter and full year as rapidly rising interest rates continue to drive expenses. Our consolidated SG&A increased slightly in the quarter, up by $0.9 million versus last year, and this was the result of higher expenses from customer factoring programs being partly offset by lower incentive compensation expense given where the year ended. SG&A expenses for the full year increased by $23.5 million and included $20.6 million of higher factoring costs and $7.2 million of additional costs from acquisitions. Excluding the incremental factoring costs for the full year, our SG&A as a percentage of sales would have been better than last year.

轉到 SG&A 費用。由於快速上升的利率繼續推動支出，我們的綜合 SG&A 支出在本季度和全年均有所增加。本季度我們的綜合 SG&A 略有增加，比去年增加 90 萬美元，這是由於客戶保理計劃的較高費用被年底時較低的激勵補償費用部分抵消。全年的 SG&A 費用增加了 2350 萬美元，其中包括 2060 萬美元的較高保理成本和 720 萬美元的額外收購成本。排除全年的增量保理成本，我們的 SG&A 佔銷售額的百分比會比去年好。

With respect to profitability, consolidated operating income, as shown here on the slide, was 7.9% of net sales for the quarter and 8.2% for the full year and earnings per share and EBITDA were lower for both the quarter and full year for the reasons already discussed. However, as Eric noted, our operating profit and adjusted EBITDA as a percentage of sales was in line with historical trends despite the pressures coming at us from inflation and interest rates.

關於盈利能力，如幻燈片所示，綜合營業收入佔本季度淨銷售額的 7.9%，佔全年的 8.2%，每股收益和 EBITDA 在本季度和全年均較低，原因如下已經討論過了。然而，正如 Eric 指出的那樣，儘管通貨膨脹和利率給我們帶來了壓力，但我們的營業利潤和調整後的 EBITDA 佔銷售額的百分比與歷史趨勢一致。

Turning now to the balance sheet. Accounts receivable of $167.6 million at the end of the quarter were down $13 million from December 2021, with the decline a result of the timing of sales at year-end as well as the write-off of a receivable related to a bankrupt customer, as noted in our release this morning. Inventory levels finished Q4 at $528.7 million, up $60 million from December 2021, with the increase in result of higher sales levels this year, inflation and inventory costs, and the strategic investment to buffer against supply chain volatility. As we work through our peak seasonal inventory needs, our inventory was reduced $22.7 million from the June 30 levels.

現在轉向資產負債表。本季度末的應收賬款為 1.676 億美元，比 2021 年 12 月減少了 1300 萬美元，下降的原因是年末銷售時間以及與破產客戶相關的應收賬款註銷，因為在我們今天早上的新聞稿中提到。庫存水平在第四季度結束時為 5.287 億美元，比 2021 年 12 月增加了 6000 萬美元，原因是今年銷售水平較高、通貨膨脹和庫存成本以及為緩衝供應鏈波動而進行的戰略投資。在我們處理季節性庫存需求高峰時，我們的庫存比 6 月 30 日的水平減少了 2270 萬美元。

Looking at cash flows. Our cash flow statement reflects cash used in operations for the full year of 2022 of $27.5 million as compared to cash generated of $85.6 million last year, with the biggest driver of cash usage being working capital. The use of cash from working capital mainly stemmed from making strategic investments in inventory during the first half of the year, but also the impact of lower accounts payable now that inventories have begun to decline. While our cash usage for the year was driven by first half performance, it's important to note we did generate $68 million of operating cash flows in the second half of the year, which was in line with our historical trends.

看現金流。我們的現金流量表反映了 2022 年全年運營中使用的現金為 2750 萬美元，而去年產生的現金為 8560 萬美元，現金使用的最大驅動力是營運資金。流動資金現金的使用主要源於上半年對存貨的戰略投資，以及存貨開始下降導致應付賬款減少的影響。雖然我們今年的現金使用量是由上半年業績推動的，但值得注意的是，我們在今年下半年確實產生了 6800 萬美元的運營現金流，這與我們的歷史趨勢一致。

Regarding capital allocation in 2022, you can see on the slide that we continue to invest in our business through capital expenditures and generate returns to shareholders via dividends and share buybacks at a steady pace versus last year. Our borrowings for the year of $111 million were lower than last year after making payments on our credit facility of $29 million during the fourth quarter, bringing our total leverage down to 1.5x adjusted EBITDA.

關於 2022 年的資本配置，您可以在幻燈片上看到，與去年相比，我們繼續通過資本支出投資於我們的業務，並通過股息和股票回購以穩定的速度為股東帶來回報。在第四季度支付了 2900 萬美元的信貸額度後，我們今年的借款為 1.11 億美元，低於去年，這使我們的總槓桿率降至調整後 EBITDA 的 1.5 倍。

Finally, I want to give an update on our sales and profit expectations for the full year of 2023. Regarding our top line sales, we expect full year 2023 sales growth in percentage terms to be in the low single digits, which again is in line with our historical growth rate. As we look at profit expectations for 2023, we'll be focusing on adjusted EBITDA in connection with our resegmentation announcement this morning and the differing margin profiles of our aftermarket Engineered Solutions businesses. As such, we expect adjusted EBITDA to be approximately 10% for the full year in 2023 as we continue to face an uncertain operating environment and costs from customer factoring programs that will hit $45 million to $50 million at current rates, but can still go higher depending on economic conditions and further rate hikes by the Federal Reserve.

最後，我想更新一下我們對 2023 年全年的銷售額和利潤預期。關於我們的銷售額，我們預計 2023 年全年的銷售額增長率將保持在較低的個位數，這再次符合預期以我們的歷史增長率。在我們審視 2023 年的利潤預期時，我們將關注與今天上午的重新細分公告相關的調整後 EBITDA 以及我們售後市場工程解決方案業務的不同利潤率狀況。因此，我們預計 2023 年全年調整後的 EBITDA 約為 10%，因為我們繼續面臨不確定的運營環境和客戶保理計劃的成本，按當前利率計算將達到 4500 萬至 5000 萬美元，但仍可能更高取決於經濟狀況和美聯儲進一步加息。

In connection with adjusted EBITDA, we expect depreciation and amortization expenses and our income tax rate to be in line with 2022, but expect our interest expense on outstanding debt to be about $4 million to $5 million each quarter, given higher rates in average borrowings versus last year. Regarding the cadence of earnings across the four quarters in 2020, we expect Q1 will be impacted by headwinds of several things, including the usual carryover of unfavorable manufacturing variances from lower Q4 production as well as from the impact of lowering our inventories further in 2023, higher year-over-year costs from customer factoring programs, and some temporary sales softness related to the bankruptcy of one of our customers. And while we'll see headwinds to start the year, we expect to improve from there as the business continues to model.

關於調整後的 EBITDA，我們預計折舊和攤銷費用以及我們的所得稅率將與 2022 年保持一致，但預計我們每個季度未償債務的利息支出約為 400 萬至 500 萬美元，因為平均借款利率高於去年。關於 2020 年四個季度的盈利節奏，我們預計第一季度將受到幾方面不利因素的影響，包括第四季度產量下降通常帶來的不利製造差異以及 2023 年進一步降低庫存的影響，客戶保理計劃的同比成本增加，以及與我們的一位客戶破產相關的一些暫時的銷售疲軟。雖然我們將在今年開始時遇到不利因素，但我們預計隨著業務繼續建模，我們會從那裡有所改善。

Looking at operating cash flows in 2023, we expect inventories to be reduced, as I mentioned before, and for working capital balances in general, stabilized. As such, we expect operating cash flows to return to levels consistent with past years. As we see cash flows return to normal, we were pleased to recently announce our Board has approved an increase in our quarterly dividend, $0.27 to $0.29 per share, an increase of 7.4% and consistent with our long track record of dividend increases.

看看 2023 年的經營現金流，正如我之前提到的，我們預計庫存將減少，並且總體而言，營運資金餘額將趨於穩定。因此，我們預計經營現金流量將恢復到與過去幾年一致的水平。當我們看到現金流恢復正常時，我們很高興地宣布，我們的董事會最近批准增加季度股息，每股 0.27 美元至 0.29 美元，增幅為 7.4%，這與我們長期增加股息的記錄一致。

To wrap up, we were pleased to report strong sales growth in 2022, while up against a record year in 2021 and continued improvement in gross margin from cost savings and pricing actions throughout the year. We thank all of our employees for helping us achieve these results in what remains a challenging economic environment. Thank you, and I'll now turn the call back to Eric to talk about our new operating segments.

總而言之，我們很高興地報告 2022 年的銷售強勁增長，同時與 2021 年創紀錄的一年相比，全年的成本節約和定價行動使毛利率持續提高。我們感謝所有員工幫助我們在仍然充滿挑戰的經濟環境中取得這些成果。謝謝，我現在將電話轉回給埃里克，談談我們新的運營部門。

Thank you, Nathan. As you saw in conjunction with our financial results, we published a press release earlier this morning announcing the creation of a new segment, Engineered Solutions. This new segment will focus on products for both on-highway and off-highway vehicle and equipment manufacturers.

謝謝你，內森。正如您在我們的財務業績中看到的那樣，我們今天早上早些時候發布了一份新聞稿，宣布創建一個新的部門，即工程解決方案。這個新的細分市場將專注於為公路和非公路車輛及設備製造商提供產品。

We discussed this growth area with you for the past many quarters, so it is not so much that it is a new business, but rather a recognition that we have achieved a level of success that warrants creating a new operating segment. This new segment will be carved from the existing two segments, leaving them focused on aftermarket sales. Concurrently, we decided to rename our Engine Management segment to Vehicle Control, which better reflects the current and evolving portfolio of products. More on that in a minute.

在過去的幾個季度裡，我們與您討論了這個增長領域，所以與其說它是一項新業務，不如說它承認我們已經取得了一定程度的成功，需要創建一個新的運營部門。這個新的細分市場將從現有的兩個細分市場中分離出來，使它們專注於售後市場銷售。同時，我們決定將我們的發動機管理部門重命名為車輛控制，以更好地反映當前和不斷發展的產品組合。稍後會詳細介紹。

To better understand the moving pieces, we posted a supplementary slide presentation to the Investor Relations website that walks through some of the rationale. We also have a totally revamped investor presentation posted on our website that lays out the two markets with much greater clarity than before, and we encourage you to review it.

為了更好地理解變化的部分，我們在投資者關係網站上發布了補充幻燈片演示文稿，其中介紹了一些基本原理。我們還在我們的網站上發布了一個完全修改過的投資者介紹，比以前更清楚地展示了這兩個市場，我們鼓勵您查看它。

Going forward, we will now have three operating segments: Engineered Solutions, Vehicle Control and Temperature Control. There are several reasons for doing this. The first is clarity. Recent growth has made Engineered Solutions a substantial business with critical mass and we believe all stakeholders will benefit from the added visibility of carved-out segment design. Secondly, while complementary, the aftermarket and engineered solutions have distinctly different operating models with different value propositions. And importantly, due to their different value propositions, they have different margin profiles. Both have strong and comparable EBITDA, but how you get there is quite different. The aftermarket has stronger gross margins, but due to the value-added services, there are higher operating expenses, especially in the areas of sales, marketing, distribution and customer factoring programs.

展望未來，我們現在將擁有三個運營部門：工程解決方案、車輛控制和溫度控制。這樣做有幾個原因。首先是清晰度。最近的增長使 Engineered Solutions 成為具有臨界質量的重要業務，我們相信所有利益相關者都將受益於分割部分設計的增加可見性。其次，雖然互補，但售後市場和工程解決方案具有截然不同的運營模式和不同的價值主張。重要的是，由於它們的價值主張不同，它們的利潤率也不同。兩者都有強大且可比的 EBITDA，但實現方式卻大不相同。售後市場的毛利率較高，但由於增值服務，運營費用較高，尤其是在銷售、營銷、分銷和客戶保理計劃方面。

In contrast, Engineered Solutions has lower gross margins but does not require the same level of value-added services. Therefore, EBITDA for this segment is similar. Engineered Solutions also had different cash flow dynamics. Inventory requirements are lower due to minimal finished goods stock, and there are different customer payment terms, both of which translate into lower overall working capital needs. Let me spend a minute taking a deeper dive on the three segments.

相比之下，工程解決方案的毛利率較低，但不需要相同水平的增值服務。因此，該部門的 EBITDA 相似。工程解決方案也有不同的現金流動態。由於成品庫存最少，庫存需求較低，而且客戶付款條件不同，這兩者都轉化為較低的整體營運資金需求。讓我花一點時間更深入地了解這三個部分。

First, let's look at Engineered Solutions as it is the new segment that requires further explanation. This new segment focuses on custom-engineered solutions to vehicle and equipment manufacturers or to their Tier 1 suppliers across diverse global end markets, including both on-highway and off-highway applications. Our offerings include product categories from both of our legacy operating segments and offer a broad array of conventional and future-oriented technologies, including those that are specific to vehicle electrification and rows that are powertrain-neutral.

首先，讓我們看看工程解決方案，因為它是需要進一步解釋的新部分。這個新的細分市場專注於為車輛和設備製造商或其一級供應商提供定制工程解決方案，這些供應商遍及全球不同的終端市場，包括公路和非公路應用。我們的產品包括來自我們兩個傳統運營部門的產品類別，並提供廣泛的傳統和麵向未來的技術，包括那些專門針對車輛電氣化和動力總成中性行的技術。

Through strategic acquisitions and organic growth, we achieved 2022 revenues of $270 million and broadened our market access with expanded product capabilities, combined customer lists, and global reach. Combining all the pieces is providing significant product cross-selling opportunities, which are beginning to bear fruit. We believe that we are at an inflection point for this business, and we are excited about the growth potential.

通過戰略收購和有機增長，我們在 2022 年實現了 2.7 億美元的收入，並通過擴大產品能力、合併客戶名單和全球影響力擴大了我們的市場准入。將所有部分結合起來提供了重要的產品交叉銷售機會，這些機會已經開始見效。我們相信我們正處於這項業務的拐點，我們對增長潛力感到興奮。

We are pursuing multiple global end markets, and we are getting the attention of blue-chip customers who now recognize this is not a secondary business for us, but one we are committed to. So while growth might not be linear and new business wins can take time to show in the numbers, we feel that the long-term growth rate here can exceed that of our aftermarket channel. Our other two segments will remain focused on our aftermarket business.

我們正在追求多個全球終端市場，我們正在引起藍籌客戶的注意，他們現在認識到這不是我們的次要業務，而是我們致力於的業務。因此，雖然增長可能不是線性的，新業務的勝利可能需要時間才能體現在數字上，但我們認為這裡的長期增長率可能會超過我們的售後市場渠道。我們的其他兩個部門將繼續專注於我們的售後市場業務。

The aftermarket has always been and will remain at the heart of what we would do. For all the reasons we continually discuss, it's a fantastic market. It's large, stable and able to withstand economic shocks. Furthermore, with over 100 years of experience, we are known as a leader in the space and one in which we hold an enviable position. We'll continue to invest in it staying current on emerging technologies.

售後市場一直並將繼續是我們工作的核心。由於我們不斷討論的所有原因，這是一個很棒的市場。它規模大、穩定並且能夠承受經濟衝擊。此外，憑藉 100 多年的經驗，我們被公認為該領域的領導者，並且我們在其中擁有令人羨慕的地位。我們將繼續對其進行投資，緊跟新興技術。

As we look to the future, we recognize the need to rename engine management to vehicle control. This more accurately reflects the ongoing evolution of the products and categories SMP offers, which extend far broader than products for the engine, including products that are powertrain neutral as well as those that are electrification specific. There will be three subcategories within the segment, again, to provide better clarity.

展望未來，我們認識到有必要將發動機管理重新命名為車輛控制。這更準確地反映了 SMP 提供的產品和類別的持續發展，這些產品和類別的範圍遠遠超過發動機產品，包括動力總成中性產品和電氣化特定產品。該細分市場中將再次分為三個子類別，以提供更好的清晰度。

The first is ignition, emissions, and fuels, which will include categories related to the internal combustion engine. Included are the more traditional products as well as new technologies to make the combustion engine more efficient and based on the demographics of the car park, we believe this subsegment will continue to perform well into the future.

第一個是點火、排放和燃料，其中將包括與內燃機相關的類別。其中包括更傳統的產品以及提高內燃機效率的新技術，並且根據停車場的人口統計數據，我們相信該細分市場在未來將繼續表現良好。

The second subcategory is electrical and safety, which focuses on products not related to the powertrain and as such, will be unaffected by the eventual shift to electric vehicles. There are many well-established categories here from ABS sensors and TPMS to various electrical switches and actuators as well as many emerging technologies such as advanced driver assist products. The third subcategory is wire sets and other. This is the smallest, less than 10% of the segment, and is in secular decline.

第二個子類別是電氣和安全，側重於與動力總成無關的產品，因此不會受到最終轉向電動汽車的影響。這裡有許多成熟的類別，從 ABS 傳感器和 TPMS 到各種電氣開關和執行器，以及許多新興技術，例如高級駕駛員輔助產品。第三小類是電線套及其他。這是最小的，不到該細分市場的 10%，並且正在長期下降。

Our other aftermarket segment will continue to be called Temperature Control. This aftermarket business segment is primarily related to passenger comfort, but is also focused on other thermal management systems in the vehicle. Not only is this segment largely immune from the transition to electrification, it is poised to benefit from it. The AC systems and electric vehicles tend to be more complex. The compressors contain motors and electronics rather than being belt-driven and are often deployed all year. There are also new systems on EVs related to battery temperature management, leading to more opportunities.

我們的其他售後市場部分將繼續稱為溫度控制。該售後市場業務部門主要與乘客舒適度相關，但也專注於車輛中的其他熱管理系統。該細分市場不僅在很大程度上不受向電氣化過渡的影響，而且有望從中受益。交流系統和電動汽車往往更複雜。壓縮機包含電機和電子設備，而不是皮帶驅動，並且通常全年部署。電動汽車上還有與電池溫度管理相關的新系統，從而帶來更多機會。

Going forward, we're redefining the two subcategories within the segment to provide better clarity in the systems they address. The first AC system components will contain those products focused on air conditioning and the second, other thermal components will include parts that provide thermal management to other vehicle systems.

展望未來，我們將重新定義該細分市場中的兩個子類別，以便更清楚地說明它們所處理的系統。第一個 AC 系統組件將包含那些專注於空調的產品，第二個，其他熱組件將包括為其他車輛系統提供熱管理的部件。

So I realize this is a lot to absorb, and we encourage you to look at the materials we posted on our Investor Relations website, which help explain it. I also suggest you visit our new Engineered Solutions website, which will provide a good perspective on the products offered and markets served. You can find a link in the press release.

所以我意識到這需要吸收很多東西，我們鼓勵您查看我們在投資者關係網站上發布的材料，這有助於解釋它。我還建議您訪問我們新的工程解決方案網站，該網站將提供有關所提供產品和服務市場的良好視角。您可以在新聞稿中找到鏈接。

We're very excited about our direction. We believe we have a winning strategy and feel that this resegmentation helps provide better clarity to all stakeholders about where we're headed. So to reiterate, we continue to be extremely bullish on the aftermarket, and we'll remain steadfastly focused on it while also embracing this relatively new area, providing it with the horsepower it needs to really grow. With that, I'd like to turn the call over to the operator and open it up for questions.

我們對我們的方向感到非常興奮。我們相信我們有一個成功的戰略，並且認為這種重新劃分有助於讓所有利益相關者更清楚地了解我們的前進方向。所以重申一下，我們繼續非常看好售後市場，我們將繼續堅定地專注於它，同時也會擁抱這個相對較新的領域，為其提供真正增長所需的動力。有了這個，我想把電話轉給接線員並公開提問。

Absolutely. At this time, we will open the floor for questions. (Operator Instructions) We will take our first question from Daniel Imbro.

絕對地。這時，我們將開始提問。 （操作員說明）我們將從 Daniel Imbro 那裡回答我們的第一個問題。

[Joe Enderlin] for Daniel. I wanted to ask about pricing initiative expectations for 2023. Do you expect incremental price increases will need to be taken this year to inflate margins? And then if so, could you describe what you're assuming on cadence and magnitude relative to last year?

[Joe Enderlin] 為丹尼爾。我想問一下對 2023 年定價計劃的預期。您認為今年是否需要逐步提價以提高利潤率？如果是這樣，你能描述一下你對與去年相比的節奏和幅度的假設嗎？

Sure. So really, as we've been saying for the last many quarters, we continue to pursue price increases to keep up with cost increases, although really requiring a combination of pricing as well as our own internal cost reduction initiatives. This has been ongoing really through the last many quarters. And as we look into 2023, we will continue to be mindful of where the costs are headed, and we'll be working with our customers to adjust accordingly. I believe, as Nathan mentioned, we've seen somewhat of a flattening of a lot of our material cost inflation, albeit at a high level, but we're continuing to watch closely what happens with interest rates.

當然。所以真的，正如我們在過去幾個季度所說的那樣，我們繼續追求價格上漲以跟上成本增長，儘管確實需要結合定價以及我們自己的內部成本削減計劃。在過去的幾個季度中，這種情況一直在持續。展望 2023 年，我們將繼續關注成本走向，並將與客戶合作進行相應調整。我相信，正如 Nathan 所提到的，我們已經看到我們的許多材料成本通脹有所趨緩，儘管處於高位，但我們將繼續密切關注利率的變化。

I realize that's not a specific answer other than we will continue to track. We need to be in reaction mode to it, difficult to get ahead of it. As such, that tends to mean that there is a lag between when we see the cost and when we're able to get the pricing. But we continue to believe the market is receptive to adjusting according to what's going on in the world.

我知道這不是一個具體的答案，我們會繼續追踪。我們需要對它處於反應模式，很難超越它。因此，這往往意味著在我們看到成本和我們能夠獲得定價之間存在滯後。但我們仍然相信，市場願意根據世界上正在發生的事情進行調整。

That's helpful. As a follow-up, could you maybe provide some thoughts on your joint venture operations and your outlook for growth this could provide for 2023 results?

這很有幫助。作為後續行動，您能否就您的合資企業運營和您的增長前景提供一些想法，這可能會為 2023 年的結果提供幫助？

Sure. Well, I'll speak to how the JVs are doing. But as it relates to outlook for growth, and I think it speaks more clearly to it, but most of our -- with the exception of one, our JVs do not get consolidated to our overall revenue. They just show under other operating profit.

當然。好吧，我將談談合資企業的表現。但由於它與增長前景有關，我認為它更清楚地說明了這一點，但我們的大多數——除了一個，我們的合資企業並沒有合併到我們的總收入中。它們只是顯示在其他營業利潤下。

But we continue to be pretty bullish on what we're seeing with the JVs. They are performing well for the two separate purposes that they are designed to provide; one, being to provide high-quality, low-cost products to come back here to North America to support the aftermarket, but also to sell into third-party markets specifically for Engineered Solutions globally. And really for all of them, we're seeing very nice progress. The one that I do tend to call out because I think it's seeing the best growth trajectory is called CYJ.

但我們仍然非常看好合資企業的情況。它們在設計提供的兩個不同目的方面表現良好；第一，提供高質量、低成本的產品回到北美以支持售後市場，同時也專門針對全球工程解決方案銷售到第三方市場。對於他們所有人來說，我們都看到了非常好的進展。因為我認為它看到了最好的增長軌跡，所以我傾向於稱之為 CYJ。

This is the joint venture that manufactures electric compressors for electric vehicles, where much of that business stays into the electric vehicle market in Asia, but is now starting to gain nice traction in Europe and North America as well. I really think we have something there from a technology standpoint and are starting to get the attention of customers who are looking for suppliers of this newer electrification technology. So we're still pretty bullish on really all of our JVs.

這是一家生產電動汽車電動壓縮機的合資企業，其中大部分業務留在亞洲的電動汽車市場，但現在也開始在歐洲和北美獲得良好的吸引力。我真的認為我們從技術的角度來看有一些東西，並且開始引起正在尋找這種新型電氣化技術供應商的客戶的注意。所以我們仍然非常看好我們所有的合資企業。

That's super helpful. That's all for me. Thank you.

這非常有幫助。這就是我的全部。謝謝。

Our next question comes from Scott Stember.

我們的下一個問題來自 Scott Stember。

I think you guys alluded to it a little bit, but maybe you could give a little more granular detail of the guidance of low singles for '23 by the three new reporting segments. Engineered Solutions sounds like that will probably lead the way. Maybe just give a little more detail on that?

我想你們稍微提到了一點，但也許你們可以更詳細地介紹三個新報告部門對 23 年低單身人士的指導。工程解決方案聽起來可能會引領潮流。也許只是提供更多細節？

Well, we are providing it as one single corporate growth number and not looking to break it out into the different segments, partly because it's early in the year, and there's a lot of moving pieces, as mentioned in my prepared remarks and as you're alluding to. We believe that Engineered Solutions has long-term growth potential that can exceed that of the aftermarket simply because we're dealing with a business that is much more diverse globally, so a lot more end markets to find growth in, and we're starting with a relatively small base.

好吧，我們將它作為一個單一的企業增長數字提供，而不是將其分解為不同的部分，部分原因是因為它是今年年初，而且有很多動人的部分，正如我準備好的評論中提到的和你'再暗指。我們相信 Engineered Solutions 的長期增長潛力可以超過售後市場，因為我們正在處理全球更加多樣化的業務，因此有更多的終端市場可以找到增長，我們正在開始基數相對較小。

So it's really more about new business wins than just growing with the market. But that could take time, Scott. It can be lumpy as wins come on as from things so we're not giving specific guidance by segment, but we're comfortable that all combined, we're going to be in that low single-digit range that we're speaking to.

因此，這實際上更多的是贏得新業務，而不僅僅是與市場一起成長。但這可能需要時間，斯科特。隨著勝利的到來，事情可能會變得不穩定，所以我們沒有按細分市場給出具體的指導，但我們很高興所有這些結合起來，我們將處於我們正在談論的低個位數範圍內.

Got it. And then on Temperature Control, you guys called out some gains in winter-related products. First time, I guess, I'm really hearing some talk about that. Maybe just go into a little more detail there and how big of this segment is with the related products?

知道了。然後在溫度控制方面，你們提到了冬季相關產品的一些收益。第一次，我想，我真的聽到了一些關於這個的話題。也許只是在那裡更詳細一點，這個部分與相關產品有多大？

So it's still a relatively small part of what Temperature Control is. It's still largely about air conditioning and therefore, in summer seasons. There are winter categories related to heaters being one of the larger blower motor. And so we are -- I can't get into details of the specific customer wins, but we've been having some nice growth in that area. Again, not enough to dramatically move the needle. It's still largely a summer business.

所以它仍然是溫度控制的一小部分。它仍然主要與空調有關，因此在夏季也是如此。有與加熱器相關的冬季類別，加熱器是較大的鼓風機電機之一。所以我們 - 我無法詳細了解特定客戶獲勝的細節，但我們在該領域取得了一些不錯的增長。同樣，不足以顯著改變針頭。它仍然主要是夏季業務。

Got it. And then last question before I jump back in the queue talking about some of the price increases that have gone through to cover notably the factoring costs. I think you said an additional $45 million to $50 million this year coming up. Maybe talk about your expectations to fully cover these costs? And what came covered? How much of that $45 million to $50 million will be offset by cost cuts or efficiency improvements?

知道了。然後是最後一個問題，在我回到隊列中談論已經經歷的一些價格上漲以支付主要是保理成本之前。我想你說過今年會增加 4500 萬到 5000 萬美元。也許談談您對完全支付這些費用的期望？涵蓋了什麼？這 4500 萬到 5000 萬美元中有多少將被成本削減或效率提高所抵消？

Well, and anything -- I can get in some details in a minute, but a lot of that is really run rate differences versus previous year. And so some of it has already been accommodated and discussions with customers are always ongoing. So now a lot really depends on the further movement from the Fed and the fact that, that has -- but a lot of these increases have already taken place.

好吧，任何事情——我可以在一分鐘內了解一些細節，但其中很多都是與去年相比的實際運行率差異。因此，其中一些已經得到滿足，並且與客戶的討論始終在進行中。所以現在很大程度上取決於美聯儲的進一步行動以及已經發生的事實 - 但其中很多已經發生了。

Right. And Scott, I would just point out the range of $45 million to $50 million wasn't additional. That's what we think the cost will be in 2023, given where the Fed is right now on interest rates.

正確的。斯科特，我只想指出 4500 萬到 5000 萬美元的範圍不是額外的。鑑於美聯儲目前的利率水平，這就是我們認為 2023 年的成本。

Okay. And what was the number for '22, so we could just get an incremental?

好的。 22 年的數字是多少，這樣我們就可以獲得增量？

Yes. The number for 2022 was about $32 million.

是的。 2022 年的數字約為 3200 萬美元。

Okay, that makes sense. That helps. Thank you, guys.

好的，這是有道理的。這有幫助。感謝你們。

Our next question comes from Bret Jordan.

我們的下一個問題來自布雷特喬丹。

Ask again on the growth outlook. Could you tell us how you see the same SKU price inflation contributing to that growth guide for '23?

再次詢問增長前景。您能否告訴我們您如何看待相同的 SKU 價格通脹對 23 年增長指南的貢獻？

There's a lot of moving pieces in there; pricing unit volume, some flexing of customer order patterns, a lot of different pieces. But as you can imagine, pricing has had probably more of an outsized influence in the past year than in previous years, but you have a lot of pieces in that number.

裡面有很多動人的東西；定價單位數量，一些靈活的客戶訂單模式，很多不同的部分。但正如您可以想像的那樣，與往年相比，定價在過去一年中的影響可能更大，但您在這個數字中有很多部分。

Okay. But I guess since we are comparing against the high pricing environment in the last year or two, do you see price being positive in '23? Or are we more on units now rather than ticket?

好的。但我想既然我們正在與過去一兩年的高定價環境進行比較，你認為 23 年的價格是正的嗎？或者我們現在更多的是單位而不是門票？

Yes, it's a blend of the two, but pricing will continue to be an import.

是的，它是兩者的結合，但定價仍將是一個重要因素。

Okay. And then on Temperature Control, I guess, could you give us some color as how retail inventories look at this point of the year going into spring?

好的。然後在溫度控制方面，我想，你能給我們一些顏色，因為零售庫存在進入春季的這個時候如何看待？

Sure. So as we look at the inventories of our major customers where we have that visibility, year-end 2022, they were a bit higher than the previous year. 2021, they really ended pretty low. So they're a bit healthier coming into this year. That said, as we look at the preseason orders that we have in-house and are continuing to discuss with our accounts. The preseason orders remain helped comparable to the previous few years.

當然。因此，當我們查看具有可見性的主要客戶的庫存時，到 2022 年底，它們比上一年略高。 2021年，他們真的收得很低。所以今年他們會更健康一些。也就是說，當我們查看內部的季前賽訂單並繼續與我們的客戶討論時。季前賽訂單與前幾年相比仍有幫助。

But as you know, very well, Brett, you've been following us a long time. All this is just in preparation for what really happens, which is in the summer. And so we'll see how the summer turns out. We're going up against two very hot years in a row. But that's really where we're going to see how the year pans out.

但正如你所知，布雷特，你已經關注我們很長時間了。所有這一切只是為真正發生的事情做準備，那是在夏天。因此，我們將看看夏天的結果如何。我們將連續兩年非常炎熱。但這確實是我們將看到這一年如何發展的地方。

Okay. And then one last question. On all those loss from bankruptcy, and the charge. Could you remind us sort of how that shakes out? I mean, years ago when Metro went bankrupt, did you wind up recovering a portion of that write-off? And sort of what's the sort of timing and expectation there?

好的。然後是最後一個問題。關於所有因破產而造成的損失，以及費用。你能提醒我們這是怎麼回事嗎？我的意思是，多年前 Metro 破產時，您是否最終收回了部分註銷金額？那裡的時間和期望是什麼？

Yes, Brett. So I guess with regard to the charge that we took and noted this morning in the release, that was our best estimate of what may be recoverable. As you know, bankruptcy is still very early days, credit committee just formed last week, and so we're still watching closely, but I don't have any real updates from where we are now.

是的，布雷特。所以我想關於我們今天早上在新聞稿中提到的指控，這是我們對可恢復內容的最佳估計。如你所知，破產還處於早期階段，信貸委員會上周剛剛成立，所以我們仍在密切關注，但我沒有關於我們現在的任何實際更新。

Thank you.

謝謝。

It appears we have no further questions at this time.

看來我們現在沒有其他問題了。

Okay. Thank you. We want to thank everyone for participating in our call today. We understand there was a lot of information presented, and we'll be happy to answer any follow-up questions you may have. Our contact information is available on our press release or our Investor Relations website. And we hope you have a great day. Thank you.

好的。謝謝。我們要感謝大家今天參加我們的電話會議。我們知道提供了很多信息，我們很樂意回答您可能提出的任何後續問題。我們的聯繫信息可在我們的新聞稿或我們的投資者關係網站上找到。我們希望您度過愉快的一天。謝謝。

Thank you, ladies and gentlemen. This concludes today's program. You may now disconnect.

謝謝你們，女士們，先生們。今天的節目到此結束。您現在可以斷開連接。