Standard Motor Products Inc (SMP) 2024 Q2 法說會逐字稿

Good day, everyone, and welcome to the Standard Motor Products' second-quarter 2024 earnings call.

大家好，歡迎參加標準電機產品公司 2024 年第二季財報電話會議。

(Operator Instructions) Please note that today's call will be recorded.

（操作員說明）請注意，今天的通話將會被錄音。

And I will be standing by, should you need any assistance.

如果您需要任何幫助，我將隨時待命。

It is now my pleasure to turn the conference over to Tony Cristello, Vice President of Investor Relations.

現在我很高興將會議交給投資者關係副總裁 Tony Cristello。

Please go ahead.

請繼續。

Thanks, Savannah, and good morning, everyone.

謝謝，薩凡納，大家早安。

Thank you for joining us on Standard Motor Products' second-quarter 2024 earnings conference call.

感謝您參加標準汽車產品公司 2024 年第二季財報電話會議。

With me today are Larry Sills, Chairman Emeritus; Eric Sills, Chairman and Chief Executive Officer; Jim Burke, Chief Operating Officer; and Nathan Iles, Chief Financial Officer.

今天與我在一起的有榮譽主席拉里·希爾斯 (Larry Sills)；希爾斯（Eric Sils），董事長兼執行長；吉姆·伯克，營運長；和財務長內森‧艾爾斯 (Nathan Iles)。

On our call today, Eric will give an overview of our performance in the quarter, and Nathan will then discuss our financial results.

在今天的電話會議上，艾瑞克將概述我們本季的業績，然後內森將討論我們的財務表現。

Eric will then provide some concluding remarks and open the call up for Q&A.

然後埃里克將提供一些總結性評論並開始問答環節。

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.

在今天早上開始之前，我想提醒您，我們今天將討論的一些資料可能包括有關我們業務和預期財務業績的前瞻性陳述。

We use words like anticipate, believe, estimate or expect, these are generally forward-looking statements.

我們使用「預期」、「相信」、「估計」或「期望」等詞語，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 they will prove correct.

儘管我們認為這些前瞻性聲明中反映的預期是合理的，但它們是基於我們目前掌握的資訊和我們所做的某些假設，我們不能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.

您還應該閱讀我們向美國證券交易委員會提交的文件，以了解可能導致我們的實際結果與前瞻性陳述不同的風險和不確定性的討論。

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

現在我將把電話轉給我們的執行長 Eric Sills。

Well, thank you, Tony, and good morning, everyone, and welcome to our second quarter earnings call.

好吧，謝謝你，托尼，大家早安，歡迎參加我們的第二季財報電話會議。

It's good to be with you today.

今天很高興和你在一起。

I'd like to start, as I always do, by recognizing all the SMP employees around the world that make us who we are, really could not be more proud of what they were able to accomplish.

一如既往，我想先感謝世界各地所有 SMP 員工，是他們成就了今天的我們，他們為自己所取得的成就感到無比自豪。

Overall, we're quite pleased with our quarter.

總的來說，我們對本季非常滿意。

Sales were up 10%, which is an all-time record for us.

銷售額成長了 10%，這是我們的歷史記錄。

And we saw it in each of our three operating segments, those certainly highlighted in temperature control, which I'll get to in a minute.

我們在三個營運部門中都看到了這一點，其中最突出的是溫度控制，我稍後會談到這一點。

So let me start with vehicle control, the largest of our segments.

讓我從車輛控制開始，這是我們最大的細分市場。

In general, we were pleased after a flattish Q1.

總的來說，在經歷了平淡的第一季之後，我們感到很高興。

The second quarter was up 2.7% over last year, showing some nice sequential momentum quarter-over-quarter, bringing our year-to-date numbers to being up by 1.6%.

第二季比去年增長 2.7%，環比呈現良好的環比勢頭，使我們的年初至今數字增長 1.6%。

We've benefited from some awarded business not present last year as well as generally favorable trends as vehicle control products are largely nondiscretionary in nature.

我們受益於去年未出現的一些獲獎業務以及普遍有利的趨勢，因為車輛控制產品本質上基本上是非自由裁量的。

Moving to temperature control.

轉向溫度控制。

It was a heck of a quarter as we saw a tremendous surge due to extended heat across much of the country.

這是一個可怕的季度，由於全國大部分地區持續高溫，我們看到了巨大的激增。

Sales for the quarter were up 28% against last year.

該季度銷售額比去年同期增長 28%。

Though it's always worthwhile to point out that seasonal cadence can change year to year.

不過，值得指出的是，季節節奏每年都會改變。

Last year started slow with a soft second quarter, but then the third quarter saw a solid improvement, so we are facing a tougher comparison going forward.

去年開局緩慢，第二季表現疲軟，但隨後第三季出現了堅實的改善，因此我們未來面臨更嚴峻的比較。

And that said, year-to-date, we are up nearly 16% and the heat has continued through July, which bodes well for a solid full year for the segment.

也就是說，今年迄今為止，我們的股價上漲了近 16%，而且這種熱度一直持續到 7 月，這預示著該領域將全年表現強勁。

I'd like to say how proud I am of our operations people.

我想說我為我們的營運人員感到多麼自豪。

They were able to keep up with this elevated demand, taking care of our customers with on-time deliveries, can't thank them enough.

他們能夠滿足這種不斷增長的需求，並按時交貨來照顧我們的客戶，並對他們感激不盡。

I'd like to shift now to talking about our non-aftermarket business, our engineered solutions segment.

我現在想談談我們的非售後業務，即我們的工程解決方案部門。

This relatively new segment continues to perform to our expectations.

這個相對較新的細分市場持續表現符合我們的預期。

Sales were up about 6% in the quarter and 5% on the year, and that there will always be some lumpiness due to the basic dynamics of the different end markets that general trend has absolutely been favorable as we continue our success landing new business and ramping up production, expanding programs with existing customers, and generally getting known in the space as a capable high-quality supplier.

本季銷售額成長約 6%，全年銷售額成長 5%，由於不同終端市場的基本動態，總的趨勢絕對是有利的，因為我們繼續成功登陸新業務，因此總是會出現一些波動。 ，擴大現有客戶的項目，並在該領域普遍成為有能力的高品質供應商。

I'd like to now spend a few moments on profitability that Nathan will go into greater detail.

我現在想花一些時間討論獲利能力，內森將更詳細地介紹這一點。

We were pleased to see a recovery in earnings in the quarter, though we know we still have work to do.

我們很高興看到本季的收益復甦，儘管我們知道我們仍有工作要做。

We're proud of what we've accomplished in controlling our costs and passing through pricing, but overall, we recognize that there is room for improvement.

我們對在控製成本和定價方面取得的成就感到自豪，但總的來說，我們認識到還有改進的空間。

We continue to face pressures in cost of goods both in elevated material costs and in wages and customer factoring programs remain a significant headwind.

我們繼續面臨商品成本的壓力，無論是材料成本上漲還是工資上漲，客戶保理計畫仍然是一個重大阻力。

To help combat this, we instituted in the quarter an early retirement program for qualified salaried employees in North America.

為了幫助解決這個問題，我們在本季為北美合格的受薪員工製定了提前退休計畫。

We are quite pleased with the level of participation.

我們對參與程度感到非常滿意。

We thank our new and soon-to-be retirees for their countless contributions to our success and wish them well.

我們感謝新員工和即將退休的員工為我們的成功做出的無數貢獻，並祝福他們一切順利。

The savings associated with this will be approximately $10 million annualized once fully realized, which will happen in phases over the next year.

一旦完全實現，與此相關的年化節省將約為 1000 萬美元，這將在明年分階段進行。

Next, I'd like to speak for a moment about our exciting recent announcement.

接下來，我想談談我們最近令人興奮的公告。

On July 10, we announced that we had signed a definitive agreement to acquire Nissens Automotive.

7 月 10 日，我們宣布已簽署收購 Nissens Automotive 的最終協議。

I won't repeat all the details.

我不會重複所有細節。

We welcome you to review the transcript of our investor call along with presentation material provided, but here are the highlights.

我們歡迎您查看我們的投資者電話會議記錄以及提供的簡報資料，但以下是重點內容。

Nissens is a leading supplier to the European aftermarket of engine cooling and air conditioning components, along with a growing line of what they call engine efficiency products, which would fall into our vehicle control category.

尼森是歐洲引擎冷卻和空調零件售後市場的領先供應商，其所謂的引擎效率產品系列也在不斷增長，這些產品將屬於我們的車輛控制類別。

With sales of around $260 million and EBITDA margins in the mid-teens, they represent an immediate significant leap forward for SMP into new markets with highly complementary products.

銷售額約為 2.6 億美元，EBITDA 利潤率為 15%左右，它們代表 SMP 憑藉高度互補的產品進入新市場的直接重大飛躍。

We need a complete customary regulatory approvals, which we expect will take a few months.

我們需要完整的慣例監管批准，預計需要幾個月的時間。

But once consummated, we are eager to get started on pursuing the numerous benefits we anticipate as we work together with their team.

但一旦完成，我們就迫不及待地開始追求與他們的團隊合作時所期望的眾多好處。

We see these benefits falling into three main areas: first, growth through cross-selling.

我們看到這些好處主要體現在三個方面：首先，透過交叉銷售來實現成長。

We are in many similar product categories but with differing strengths as we leverage that, we can expand our offerings on both sides of the ocean.

我們有許多相似的產品類別，但具有不同的優勢，當我們利用這些優勢時，我們可以在大洋兩岸擴展我們的產品。

Second, we anticipate cost reduction synergies as we combine our purchasing power, seek best cost, pursue in-sourcing, freight consolidation, and so on.

其次，當我們結合我們的購買力、尋求最佳成本、追求內包、貨運整合等時，我們預期會產生降低成本的綜效。

And third, we believe that by joining forces, we could become a stronger company and therefore, a better supplier to our customers.

第三，我們相信，透過攜手合作，我們可以成為更強大的公司，從而成為客戶更好的供應商。

We can accelerate product launches, tackle new technologies faster and pursue numerous other means the collaboration.

我們可以加快產品發布、更快地採用新技術並尋求許多其他合作方式。

Some more to come on Nissens, but needless to say, we're excited.

尼森斯還將推出更多內容，但不用說，我們很興奮。

With that, I'll turn it over to Nathan to review the numbers with some additional color.

這樣，我將把它交給 Nathan，讓他用一些額外的顏色來檢查這些數字。

All right.

好的。

Thank you, Eric.

謝謝你，埃里克。

As we go through the numbers, I'll first give some color on the results by segment and at the consolidated level, then cover some key balance sheet and cash flow metrics and finally, provide a brief update on our financial outlook for the full year of 2024.

當我們瀏覽這些數字時，我將首先對按部門和合併層面的結果進行一些說明，然後介紹一些關鍵的資產負債表和現金流量指標，最後簡要介紹我們全年的財務前景2024 年。

First, looking at our vehicle control segment, you can see on the slide that net sales of $188.7 million in Q2 were up 2.7% and for the first six months are now up 1.6%, with the increase driven by solid demand for our products and new business wins.

首先，看看我們的車輛控制部門，您可以在幻燈片上看到，第二季度的淨銷售額為1.887 億美元，增長了2.7%，前六個月增長了1.6%，增長是由對我們產品的強勁需求和新業務獲勝。

Vehicle control's adjusted EBITDA of 10.4% for both the second quarter and first six months is down from last year, driven by a lower gross margin rate and higher operating expenses.

由於毛利率較低和營運費用較高，車輛控制第二季和前六個月的調整後 EBITDA 均為 10.4%，較去年下降。

While this segment's gross margin dollars were flat to last year due to higher sales, the margin rate was lower as a result of the increases in costs that Eric noted before.

雖然由於銷售額增加，該部門的毛利率與去年持平，但由於埃里克之前提到的成本增加，利潤率較低。

SG&A expenses increased mainly due to inflationary increases, which I'll touch more on later and factoring expenses also increased due to higher sales and timing of cash collections.

SG&A 費用增加主要是由於通貨膨脹的增加，我稍後會詳細討論這一點，而保理費用也由於銷售額增加和現金收款時間增加而增加。

Turning to temperature control.

轉向溫度控制。

Net sales in the quarter for that segment of $124.5 million were up 28.2% as we saw a very strong start to the summer selling season, and this start helped our sales grow 15.7% for the first six months of the year.

該部門本季的淨銷售額為 1.245 億美元，成長了 28.2%，因為我們看到夏季銷售季節的強勁開局，而這一開局幫助我們今年前六個月的銷售額增長了 15.7%。

Temperature control's adjusted EBITDA increased in Q2 to 12.6%, and for the first six months increased to 9.7% as higher sales volumes led to higher gross margin rates and improved leverage of operating expenses for both the quarter and year-to-date periods.

溫度控制的調整後 EBITDA 在第二季度增長至 12.6%，前六個月增長至 9.7%，因為銷量增加導致毛利率提高，本季和年初至今營運費用槓桿率提高。

Temp control adjusted EBITDA also benefited from improved performance in our joint ventures in China versus last year.

與去年相比，溫度控制調整後的 EBITDA 也受惠於我們在中國的合資企業表現的改善。

Looking now at engineered solutions.

現在來看看工程解決方案。

Sales in that segment in the quarter were up 6.1% and for the first six months were up 5.3%.

本季該細分市場的銷售額成長了 6.1%，前六個月成長了 5.3%。

We were pleased to see our sales continue to increase in this segment as new business wins with both existing and new customers support very good growth here.

我們很高興看到我們在這一領域的銷售額繼續成長，因為新業務的贏得以及現有和新客戶的支援都支持了這裡的良好成長。

Adjusted EBITDA for engineered solutions in the quarter of 13.1% was up slightly from last year.

本季工程解決方案的調整後 EBITDA 為 13.1%，比去年略有成長。

The improvement was the result of good leverage of operating expenses that were lower as a percentage of sales, and this segment also benefited from improved performance in our joint ventures in China versus Q2 last year.

這一改善是由於營運費用佔銷售額的比例較低，槓桿率較高，而且該部門也受益於我們在中國的合資企業與去年第二季度相比業績的改善。

Engineered solutions' adjusted EBITDA for the first six months is down from last year, driven by lower gross margin due to cost pressures, but also the unfavorable sales mix we experienced in the first quarter and partly offset by better performance from Chinese joint ventures.

工程解決方案公司前六個月的調整後EBITDA 較去年有所下降，原因是成本壓力導致毛利率下降，而且我們在第一季度經歷了不利的銷售組合，部分被中國合資企業更好的業績所抵消。

Turning to our consolidated numbers.

轉向我們的綜合數字。

The change in our net sales and gross margin for the quarter and first six months versus last year was the result of the changes in our segments, as I just highlighted.

正如我剛才強調的那樣，本季和前六個月的淨銷售額和毛利率與去年相比的變化是我們部門變化的結果。

Regarding consolidated SG&A, excluding factoring, which is shown separately on the page, expenses were up for both the quarter and first six months versus last year.

關於綜合銷售管理費用（SG&A）（不包括頁面上單獨顯示的保理業務），本季和前六個月的費用均較去年增加。

As a percentage of net sales, SG&A was flat with last year at 17.5% in the quarter, given strong sales volume, but was up at 18.4% for the first six months.

由於銷售強勁，本季銷售、管理及行政費用 (SG&A) 佔淨銷售額的百分比與去年持平，為 17.5%，但前 6 個月上升至 18.4%。

Start-up costs related to our new distribution center were $1.3 million in the quarter and $2.3 million year to date.

本季與新配送中心相關的啟動成本為 130 萬美元，年初至今為 230 萬美元。

And without these costs, SG&A would have been 17.1% in the quarter and 18.1% for the first six months.

如果沒有這些成本，本季的 SG&A 將為 17.1%，前六個月為 18.1%。

I noted last quarter that increases in SG&A costs were driven by general inflation, but also elevated distribution expenses across a number of inputs, including higher lease expense and that we'll be looking at ways to reduce our costs going forward.

我在上個季度指出，SG&A 成本的增加是由整體通貨膨脹推動的，但也增加了許多投入的分銷費用，包括更高的租賃費用，我們將尋找降低未來成本的方法。

To that point, we executed a retirement program during the second quarter, which we anticipate will save us an estimated $10 million in compensation costs.

為此，我們在第二季執行了一項退休計劃，預計這將為我們節省約 1000 萬美元的補償成本。

We incurred a charge of $2.6 million related to this program in Q2 and expect to incur an additional charge of $3.1 million in the second half of the year as people retire.

我們在第二季產生了與該計劃相關的 260 萬美元費用，預計隨著人們退休，下半年將產生 310 萬美元的額外費用。

We'll also continue to review other levers to pull to reduce our costs overall.

我們也將繼續審查其他手段來降低我們的整體成本。

Turning now to the balance sheet.

現在轉向資產負債表。

Accounts receivable were $239.3 million at the end of the quarter, higher than last year due to higher sales.

由於銷售額增加，本季末應收帳款為 2.393 億美元，高於去年同期。

Inventory levels finished Q2 at $508.2 million up slightly versus June last year, but basically flat with year-end as higher sales have kept inventory levels lower, even though we're in peak season for the temp control business.

第二季的庫存水準為 5.082 億美元，較去年 6 月略有增加，但與年底基本持平，因為較高的銷售額使庫存水準保持較低，儘管我們正處於溫度控制業務的旺季。

Our cash flow statement reflects cash used in operations for the first six months of $10.1 million as compared to cash generated of $39.4 million last year.

我們的現金流量表反映了前六個月營運中使用的現金為 1,010 萬美元，而去年產生的現金為 3,940 萬美元。

Cash used in operations last year was aided by a reduction in inventory balances that did not recur this year after bringing inventory back down to normal levels over the course of 2023.

去年營運中使用的現金得益於庫存餘額的減少，在 2023 年將庫存恢復到正常水準後，今年沒有再出現這種情況。

Investing activities show an increase in capital expenditures this year of $13.4 million, which includes $10.4 million of investment related to our new distribution center.

投資活動顯示，今年的資本支出增加了 1,340 萬美元，其中包括與我們的新配送中心相關的 1,040 萬美元投資。

Financing activities show borrowings on a revolving credit agreement of $52 million in the first six months, which were used to fund operations, capital expenditures and paid $12.7 million of dividends.

融資活動顯示，前六個月循環信貸協議借款額為 5,200 萬美元，用於為營運、資本支出提供資金並支付 1,270 萬美元的股息。

We also repurchased shares under an existing $30 million authorization from our Board, repurchasing $10.4 million of shares during the first six months.

我們也根據董事會現有的 3,000 萬美元授權回購了股票，在前六個月回購了 1,040 萬美元的股票。

While we have $19.6 million of authorization remaining, we have paused repurchases in anticipation of closing on the acquisition of Nissens later this year.

雖然我們還剩下 1,960 萬美元的授權，但我們已經暫停了回購，預計將在今年稍後完成對 Nissens 的收購。

Our net debt of $182 million at the end of Q2 was lower than last year, and we finished the quarter with a leverage ratio of 1.5 times EBITDA.

在第二季末，我們的淨負債為 1.82 億美元，低於去年同期，本季結束時，我們的槓桿率為 EBITDA 的 1.5 倍。

As we noted in July, we do expect our leverage ratio to increase to a little less than 3.5 times on a pro forma basis once the acquisition of Nissens is closed, and then we use cash flows to work our debt balance down to lower levels over time.

正如我們在 7 月指出的那樣，我們確實預計，一旦完成對 Nissens 的收購，我們的槓桿率預計將增至略低於 3.5 倍，然後我們將利用現金流將債務餘額降至較低水平。 。

Before I finish, I want to give an update on our sales and profit expectations for the full year of 2024.

在結束之前，我想介紹一下我們 2024 年全年銷售和利潤預期的最新情況。

As I do, please note that our outlook does not include any impact from Nissens acquisition as exact timing of closing is not yet known.

正如我所做的那樣，請注意，我們的展望不包括 Nissens 收購的任何影響，因為特定的收購時間尚不清楚。

Regarding our top line sales, given the sales growth we saw during the second quarter, we now expect to see low to mid-single-digit percentage growth in sales for the full year.

關於我們的營收，考慮到第二季的銷售成長，我們現在預計全年銷售額將出現低至中個位數的百分比成長。

We're maintaining our expectations for adjusted EBITDA, which we expect to be in a range of 9% to 9.5% and essentially flat with 2023.

我們維持對調整後 EBITDA 的預期，預計將在 9% 至 9.5% 之間，與 2023 年基本持平。

This estimate includes cost pressures, which continue to be a headwind for our vehicle control and engineered solutions segments, a US dollar that remains at a multiyear low against the Mexican peso and factoring expenses of $48 million to $50 million as sales are expected to be higher than last year.

這項估計包括成本壓力，這仍然是我們的車輛控制和工程解決方案領域的阻力，美元兌墨西哥比索仍處於多年低位，以及由於銷售額預計將更高而保理費用為 4800 萬至 5000 萬美元比去年。

We also have some costs related to our new distribution center in Cheney, Kansas, which in total will be $7 million to $8 million in 2024.

我們還有一些與堪薩斯州切尼的新配送中心相關的成本，到 2024 年，這些成本總計將達到 700 萬至 800 萬美元。

As a reminder, we incurred about $2 million of costs for this warehouse last year, which means we have incremental costs in 2024 of $5 million to $6 million, of which we estimate $3 million to $4 million of start-up related and will not recur.

提醒一下，去年我們這個倉庫的成本約為200 萬美元，這意味著2024 年我們的增量成本為500 萬至600 萬美元，其中我們估計其中300 萬至400 萬美元與啟動相關，並且不會重複發生。

In connection with our adjusted EBITDA outlook, we expect our interest expense on outstanding debt to be on average about $2 million to $3 million each quarter, and we expect our income tax rate to be 25%.

考慮到我們調整後的 EBITDA 前景，我們預計未償還債務的利息支出平均每季約為 200 萬至 300 萬美元，我們預計所得稅率為 25%。

Regarding operating expenses in this outlook, keep in mind our operating expenses are incurred more ratably across the year but do have some variability with sales and as such, will fluctuate with seasonality in the business.

關於本展望中的營運費用，請記住，我們的營運費用在全年中的發生率更高，但確實會隨銷售額而變化，因此會隨著業務的季節性而波動。

Given this dynamic, we anticipate total operating expenses, inclusive of factoring, will range from $84 million down to $76 million as we go through the last two quarters of 2024.

鑑於這種動態，我們預計 2024 年最後兩季的總營運費用（包括保理費用）將從 8,400 萬美元降至 7,600 萬美元。

To quickly wrap up, we are very pleased with our sales growth in both the quarter and first half of the year, which helped us turn in better results than expected.

總而言之，我們對本季和上半年的銷售成長感到非常滿意，這幫助我們取得了好於預期的業績。

As I noted, we're still seeing higher cost swinging on certain areas of the business, and we'll be reviewing ways to reduce these costs going forward.

正如我所指出的，我們仍然看到某些業務領域的成本上升，我們將審查未來降低這些成本的方法。

Thank you for your attention.

感謝您的關注。

I'll turn the call back to Eric for some final comments.

我會將電話轉回給埃里克，徵求一些最終意見。

Well thank you, Nathan.

好吧，謝謝你，內森。

And just in closing, I'd like to spend a minute on how we're thinking about the future.

最後，我想花一點時間談談我們如何思考未來。

We obviously recognize that they were in uncertain times impacted by various macroeconomic factors.

我們顯然意識到，他們正處於受各種宏觀經濟因素影響的不確定時期。

We've always felt that our industries are structurally sound and highly resilient and in the long run, they do very well.

我們一直認為我們的行業結構健全、彈性強，從長遠來看，它們表現得很好。

As we look at the North American aftermarket, I believe we can feel confident that it can withstand short-term shocks, and we feel very good about our position in the market with key large nondiscretionary product categories and strong customer relationships.

當我們審視北美售後市場時，我相信我們可以對其能夠承受短期衝擊充滿信心，並且我們對自己在市場中的地位非常滿意，擁有重要的大型非自由裁量產品類別和強大的客戶關係。

Our engineered solutions business is obviously in a different stage of its maturity, but we're delighted with what we've seen.

我們的工程解決方案業務顯然處於成熟的不同階段，但我們對所看到的感到滿意。

It's doing what we hoped by creating a cohesive business unit with a coherent strategy, we have achieved critical mass to become a real supplier on the global stage.

透過創建一個具有連貫策略的有凝聚力的業務部門，我們實現了我們所希望的目標，我們已經達到了成為全球舞台上真正的供應商的臨界點。

And soon, with Nissens acting as a third leg of our stool and all it can do for us as we integrate it, we're very bullish about the future.

很快，隨著尼森成為我們的第三條腿，以及它在我們整合它時能為我們做的一切，我們對未來非常樂觀。

So that concludes our prepared remarks.

我們準備好的發言就到此結束。

At this point, we will turn it back to the moderator, and we'll open it up for your questions.

此時，我們會將其轉回給主持人，並開放供您提問。

(Operator Instructions) Scott Stember, ROTH MKM.

（操作員說明）Scott Stember，ROTH MKM。

Good morning, guys and thanks for taking my questions.

早上好，夥計們，感謝您提出我的問題。

Morning, Scott.

早安，史考特。

In the vehicle control segment, nice rebound from the flattish results for the first quarter.

在車輛控制領域，較第一季持平的業績出現了良好的反彈。

Some of your customers have reported, I guess, sluggish demand overly, I guess, in some of the hard parts areas.

我猜你們的一些客戶報告說，在某些硬零件領域，需求過於低迷。

And I'm just trying to get a sense of what you guys saw at POS retail and how that's affecting orders as we stand right now from your customers?

我只是想了解你們在 POS 零售中看到的情況，以及這對我們目前從你們客戶那裡得到的訂單有何影響？

Thank you, Scott.

謝謝你，斯科特。

And I think I can agree with what you're hearing more from them but is that they're seeing softness more in front room and DIY type product, but also to a degree more or less by the different distributors in some of the backroom product as well.

我想我可以同意你從他們那裡聽到的更多內容，但他們在前台和DIY 類型的產品中看到了更多的軟性，但在某種程度上，不同的分銷商在一些後台產品中也看到了更多的軟性以及。

What we've seen over the course of the quarter, is that our POS, their sales out has been roughly flat to perhaps slightly down, but we think that that's just kind of the normal ebbs and flows in any given period.

我們在本季度看到的是，我們的 POS 銷售額大致持平甚至略有下降，但我們認為這只是任何特定時期的正常潮起潮落。

And so roughly tracks with what they're purchasing from us.

大致追蹤他們從我們這裡購買的商品。

Okay.

好的。

So really no change from that low single-digit thought process going forward?

那麼，接下來的低個位數思考過程真的沒有改變嗎？

Correct.

正確的。

All right.

好的。

And on the rate front, it seems increasingly likely or at least what the market is telling us is that we'll probably see a couple of rate cuts.

在利率方面，似乎越來越有可能，或至少市場告訴我們的是，我們可能會看到幾次降息。

Can you maybe just remind us, I guess, net of any potential price givebacks, how that could benefit you and how fast that would happen on the factoring side?

我想，您能否提醒我們，扣除任何潛在的價格回饋，這對您有何好處以及在保理方面發生的速度有多快？

Yeah.

是的。

So Scott, just to put a little bit of a marker on it.

斯科特，只是在上面做一點標記。

If you think about our factoring programs, there's about $800 million of sales on those programs.

如果您考慮我們的保理計劃，這些計劃的銷售額約為 8 億美元。

Every 25 basis point move is essentially worth about $2 million for us on those programs.

在這些計劃中，每 25 個基點的變動對我們來說基本上價值約 200 萬美元。

So that's a way to think about increases or cuts as they happen.

因此，這是一種在發生增加或減少時考慮的方法。

I would just say that if you think about the rate that we follow for that, it's a 360-day SOFR rate.

我只想說，如果你考慮我們所遵循的利率，那就是 360 天的 SOFR 利率。

And given that, that rate has been baking in some cuts in the back half of the year, all year since we came into the year in January.

有鑑於此，自一月份進入今年以來，這一比率在今年下半年一直在一些削減中出現。

And so this recent Fed announcement essentially being in line with that doesn't change our outlook a whole lot at this point.

因此，聯準會最近的聲明基本上與這一點一致，目前並沒有太大改變我們的前景。

Got it.

知道了。

That's all I have for now.

這就是我現在所擁有的一切。

I'll jump back in the queue.

我會跳回到隊列中。

Thanks.

謝謝。

Thank you, Scott.

謝謝你，斯科特。

Bret Jordan, Jefferies.

布雷特·喬丹，杰弗里斯。

Hey good morning, guys.

嘿，早上好，夥計們。

Morning, Bret.

早安，布雷特。

(multiple speakers)

（多個發言者）

Can you talk about what you're seeing in inventory at your customers in temperature control.

您能談談您在客戶庫存中看到的溫度控制方面的情況嗎？

Do we stay hot through August into the fall?

我們從八月到秋天都會保持炎熱嗎？

Or is there likely another round of ordering or are they reasonably stocked?

或者是否可能有另一輪訂購或庫存是否合理？

Well, our inventory visibility is a little bit delayed.

嗯，我們的庫存可見性有點延遲。

So we really see it more through June and what happened in the last several weeks were not as attuned to.

因此，我們確實在六月看到了更多的情況，而過去幾週發生的事情並沒有那麼協調。

What we saw through the quarter was that, that their shelves stayed pretty flat, which means that we were able to keep up with their demand and keep their shelves where they wanted them.

我們在整個季度看到的是，他們的貨架保持相當平坦，這意味著我們能夠滿足他們的需求並將他們的貨架保持在他們想要的地方。

As we think about what their sell-through was in July versus their purchases, we anticipate that, that's continued to track.

當我們考慮他們 7 月的銷售量與購買量時，我們預計這種情況會持續下去。

And the heat is now continuing really throughout much of the country.

現在全國大部分地區都持續高溫。

So we're pretty pleased with that.

所以我們對此非常滿意。

And what that tends to show, but time will tell is that prolonged heat tends to have the replenishment orders continuing throughout the season as opposed to in a different cadence to a summer where they may start to taper off their replenishment orders, we're not anticipating this at this time.

這往往表明，但時間會告訴我們的是，持續的高溫往往會使補貨訂單在整個季節持續，而不是以與夏季不同的節奏，在那裡他們可能開始逐漸減少補貨訂單，我們不是此時正期待著這一點。

But it's still early days, and we'll see what happens throughout the balance of the summer.

但現在還為時過早，我們將看看整個夏天會發生什麼。

Okay.

好的。

And then I guess what's your outlook on pricing?

那我猜你對定價有何看法？

You talked about inputs -- input costs being up, obviously factoring.

你談到了投入——投入成本上升，顯然是保理因素。

If you think about how receptive are your primary customers to price increases for the balance of the year, like what do you see as inflation from the price side?

如果您考慮一下您的主要客戶對今年剩餘時間價格上漲的接受程度如何，例如您如何看待價格方面的通貨膨脹？

As we've always said, we do our best to cover inflation through a combination of pricing and cost reduction.

正如我們一直所說的，我們盡最大努力透過定價和降低成本相結合來應對通貨膨脹。

It is a competitive market.

這是一個競爭激烈的市場。

I think that the receptivity is challenging.

我認為接受能力具有挑戰性。

But beyond that, I really can't get into any specific customer discussions.

但除此之外，我真的無法參與任何特定的客戶討論。

There's a lot that goes into it, and we do our best.

有很多事情要做，我們會盡力而為。

Okay.

好的。

And then I guess one last question.

然後我猜最後一個問題。

You commented about new business wins in vehicle control.

您評論了車輛控制領域的新業務勝利。

Is that bringing business back that might have gone to direct import programs?

這是否會讓原本直接進口計畫的業務重新回來？

Or is that business taken from sort of more normal peers like Wells?

或者這項業務是從像威爾斯這樣的更正常的同行那裡奪走的嗎？

I'm not going to get into the specifics of it, Bret.

我不打算深入討論它的細節，布雷特。

But that -- just in general, there's always certain nominal wins and losses.

但總的來說，總是有一定的名義上的勝利和損失。

We tend to win more than we lose.

我們傾向於贏得多於失去。

And so that's really what we see here.

這就是我們在這裡看到的。

But in terms of who we've got it from, I can't get into that.

但至於我們從誰那裡得到的訊息，我無法透露。

Okay.

好的。

Thanks.

謝謝。

Thank you.

謝謝。

(Operator Instructions) Carolina Jolly, Gabelli.

（操作員說明）Carolina Jolly、Gabelli。

Hi.

你好。

Thanks for taking my question.

感謝您提出我的問題。

Just a quick note on overall inventories.

關於整體庫存的快速說明。

I know Bret asked about temp control, but just overall, the inventory in the market, how do you feel about that?

我知道布雷特問過溫度控制的問題，但總的來說，市場上的庫存，你對此有何看法？

Good morning, Carolina and so on the vehicle control side, again, very similar.

早上好，卡羅萊納州等等，在車輛控制方面，再次非常相似。

We're seeing that inventory is stable month over month.

我們看到庫存逐月穩定。

So there's no specific inventory strategy shift for any of our customers.

因此，我們的任何客戶都沒有具體的庫存策略轉變。

They have what they want to have and are operating accordingly.

他們擁有他們想要擁有的東西，並且正在相應地運作。

Got it.

知道了。

And then also, you've discussed leases, some of the pressure from leases.

此外，您還討論了租賃以及租賃帶來的一些壓力。

I know you talked about kind of if the interest rate lowers the impact from the factoring, would there be any benefit on that lease expense?

我知道您談到如果利率降低保理的影響，租賃費用會有任何好處嗎？

Yeah.

是的。

So Carolina, we renew leases over time just as they come to -- so I don't think lower rates will have any impact on what we've already renewed over the last couple of years.

因此，卡羅萊納州，我們會隨著時間的推移而續約租約，所以我認為較低的利率不會對我們過去幾年已經續約的租約產生任何影響。

But certainly, going forward, that should be some sort of a benefit as we look at the renewals.

但當然，展望未來，當我們考慮續約時，這應該是某種好處。

Thank you.

謝謝。

Thank you.

謝謝。

And with no further questions, I'd like to turn it back to our presenters for any additional or closing remarks.

沒有其他問題了，我想將其轉回給我們的主持人以供補充或結束語。

Okay.

好的。

Well, we want to thank everyone for participating in our call today.

好吧，我們要感謝大家今天參與我們的電話會議。

We understand there was a lot of information presented, and we'll be happy to answer any follow-up questions you may have.

我們知道其中提供了大量信息，我們很樂意回答您可能提出的任何後續問題。

Our contact information is available on our press release or Investor Relations website.

我們的聯絡資訊可在我們的新聞稿或投資者關係網站上找到。

Hope you have a great day.

希望您度過愉快的一天。

Thank you.

謝謝。

And this will conclude today's conference.

今天的會議到此結束。

Thank you for your participation, and you may now disconnect.

感謝您的參與，您現在可以斷開連接。