Stoneridge Inc (SRI) 2022 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Stoneridge Fourth Quarter 2022 Conference Call. (Operator Instructions)

美好的一天，謝謝你的支持。歡迎來到 Stoneridge 2022 年第四季度電話會議。 （操作員說明）

Please be advised that this call is being recorded. And I would now like to hand the conference over to our speaker today, Kelly Harvey, Director of Investor Relations. Please go ahead.

請注意，此通話正在錄音中。我現在想把會議交給我們今天的發言人，投資者關係總監凱利哈維。請繼續。

Good morning, everyone, and thank you for joining us to discuss our fourth quarter and full year 2022 results. The release and accompanying presentation was filed with the SEC yesterday evening and is posted to our website at stoneridge.com in the Investors section under Webcast and Presentation.

大家早上好，感謝您加入我們討論我們的第四季度和 2022 年全年業績。該新聞稿和隨附的演示文稿於昨天晚上提交給美國證券交易委員會，並發佈在我們網站 stoneridge.com 的“網絡廣播和演示文稿”下的“投資者”部分。

Joining me on today's call are Jim Zizelman, our President and Chief Executive Officer; and Matt Horvath, our Chief Financial Officer.

我們的總裁兼首席執行官 Jim Zizelman 和我一起參加今天的電話會議；和我們的首席財務官 Matt Horvath。

Before we begin, I need to inform you that certain statements today may be forward-looking statements. Forward-looking statements include statements that are not historical in nature and include information concerning our future results or plans. Although we believe that such statements are based upon reasonable assumptions, you should understand that these statements are subject to risks and uncertainties, and actual results may differ materially. Additional information about such factors and uncertainties that could cause actual results to differ may be found in our 10-K, which will be filed today with the Securities and Exchange Commission under the heading forward-looking statements.

在我們開始之前，我需要通知您，今天的某些陳述可能是前瞻性陳述。前瞻性陳述包括非歷史性的陳述，包括有關我們未來結果或計劃的信息。儘管我們認為此類陳述是基於合理的假設，但您應該理解這些陳述存在風險和不確定性，實際結果可能存在重大差異。有關可能導致實際結果不同的此類因素和不確定性的更多信息，請參閱我們的 10-K 報告，該報告將於今天在前瞻性陳述標題下提交給美國證券交易委員會。

During today's call, we will also be referring to certain non-GAAP financial measures. Please see the appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures. After Jim and Matt have finished their formal remarks, we will open up the call to questions.

在今天的電話會議中，我們還將提到某些非 GAAP 財務指標。請參閱附錄，了解這些非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬情況。吉姆和馬特完成正式發言後，我們將開始提問。

Turning to Page 3. I would like to introduce Jim Zizelman, who was recently appointed as President and Chief Executive Officer of Stoneridge, and was also appointed to the Stoneridge Board of Directors effective January 30. After a year of consulting with the company, Jim joined Stoneridge almost 3 years ago as President of the Control Devices division and has played an integral role in developing and executing on the strategic priorities, product development and technical vision for both Control Devices and Stoneridge more broadly. Jim brings a wealth knowledge and experience, and we are fortunate to have a proven business leader and experienced executive step into the CEO role.

翻到第 3 頁。我想介紹 Jim Zizelman，他最近被任命為 Stoneridge 的總裁兼首席執行官，並於 1 月 30 日被任命為 Stoneridge 董事會成員。經過一年的公司諮詢，Jim大約 3 年前加入 Stoneridge，擔任 Control Devices 部門總裁，並在更廣泛地為 Control Devices 和 Stoneridge 制定和執行戰略重點、產品開發和技術願景方面發揮了不可或缺的作用。 Jim 帶來了豐富的知識和經驗，我們很幸運有一位久經考驗的商業領袖和經驗豐富的高管接任首席執行官一職。

Thank you, Kelly. I am fortunate enough to have already spent a significant amount of time at the company as President of the Control Devices division and as a member of the executive staff, where I was able to have a broad impact on the overall strategic direction of the company. I focused on aligning the segment with industry megatrends while sustaining strong margins during challenging macroeconomic conditions by placing a key focus on rigor and discipline across all elements of the business.

謝謝你，凱利。我很幸運，作為控制設備部門的總裁和管理人員，我已經在公司工作了很長時間，我能夠對公司的整體戰略方向產生廣泛的影響。我專注於使該細分市場與行業大趨勢保持一致，同時通過重點關注業務所有要素的嚴謹性和紀律，在充滿挑戰的宏觀經濟條件下保持強勁的利潤率。

I look forward to working closely with our Board, our senior leadership team and our dedicated global teams as we continue to execute on a strong long-term strategy focused on sustainable, profitable growth.

我期待著與我們的董事會、我們的高級領導團隊和我們敬業的全球團隊密切合作，因為我們將繼續執行以可持續、盈利增長為重點的強有力的長期戰略。

Turning to Page 4. With my transition to CEO, Rajaey Kased was appointed as President of the Control Devices business. Rajaey was most recently the Vice President of Sales and Product Line Management for Control Devices, where during his 3-year tenure, he demonstrated the leadership and strategic thinking that has helped advance the division's priorities and performance.

翻到第 4 頁。隨著我向 CEO 過渡，Rajaey Kased 被任命為控制設備業務總裁。 Rajaey 最近擔任控制設備銷售和產品線管理副總裁，在他 3 年的任期內，他展示了幫助推進該部門的優先事項和績效的領導能力和戰略思維。

Rajaey was responsible for overseeing a number of divestitures of noncore business that help shape the Control Devices portfolio to better align with industry megatrends that will drive growth going forward. In his new role, Rajaey will be responsible for driving business performance, commercial relationships, product development and our continued innovation strategy within the segment.

Rajaey 負責監督多項非核心業務的剝離，這些業務有助於塑造控制設備產品組合，以更好地適應推動未來增長的行業大趨勢。在他的新角色中，Rajaey 將負責推動業務績效、商業關係、產品開發和我們在該部門的持續創新戰略。

Turning to Page 5. In the fourth quarter, we continued to see sequential revenue improvement with 5.2% growth compared to the third quarter and EBITDA margin expansion of 100 basis points, excluding an adjustment related to a prior quarter correction. This $0.10 correction was driven by the FX impact on nonoperating gain recorded in the second quarter related to a derivative security and not material to our operations or baseline operating performance. Matt will provide further detail later in the call.

翻到第 5 頁。在第四季度，我們繼續看到收入連續改善，與第三季度相比增長 5.2%，EBITDA 利潤率擴大 100 個基點，不包括與上一季度修正相關的調整。這一 0.10 美元的修正是由於外匯對第二季度記錄的與衍生證券相關的非經營收益的影響，而不是對我們的經營或基準經營業績的實質性影響。馬特稍後將在電話中提供更多細節。

Excluding this correction, adjusted earnings per share was $0.11, which was an $0.08 increase over the prior quarter. Overall, 2022 sales increased by 12% relative to 2021, while EBITDA increased by over 25%. We expect this trend to continue as we are guiding midpoint revenue growth of approximately 16% in 2023 with EBITDA growth of over 75% and EBITDA margin expansion of approximately 210 basis points based on our midpoint guidance.

剔除這一修正後，調整後每股收益為 0.11 美元，比上一季度增加 0.08 美元。總體而言，2022 年銷售額較 2021 年增長 12%，而 EBITDA 增長超過 25%。我們預計這一趨勢將持續下去，因為我們指導 2023 年的中點收入增長約 16%，根據我們的中點指導，EBITDA 增長超過 75%，EBITDA 利潤率擴大約 210 個基點。

Most importantly, we continue to focus on the product platforms that will drive future growth. Our first OEM MirrorEye program launched over a year ago in Europe and has significantly outperformed original expectations with a take rate of approximately 40% going into 2023. Our next MirrorEye program launches in North America in the second quarter of this year with the customer expected take rate of approximately 10%. This morning, I am pleased to announce that our second European OEM partner has increased their forecasted take rate from 25% originally to approximately 45% based on expected market demand. This program is expected to launch in 2024.

最重要的是，我們繼續專注於推動未來增長的產品平台。我們的第一個 OEM MirrorEye 計劃一年多前在歐洲推出，其表現大大超出了最初的預期，到 2023 年的採用率約為 40%。我們的下一個 MirrorEye 計劃將於今年第二季度在北美推出，客戶預期採用率率約為 10%。今天早上，我很高興地宣布，我們的第二個歐洲 OEM 合作夥伴已根據預期的市場需求將他們的預測採用率從最初的 25% 提高到大約 45%。該計劃預計將於 2024 年啟動。

Similarly, we continue to expand our retrofit applications and develop technologies in adjacent markets that will continue to drive our future growth. Earlier this week, we announced a partnership with KLLM Transport Services and Frozen Food Express, detailing their intention to equip approximately 1,000 new and existing vehicles with MirrorEye this year. Similarly, we announced a partnership with Grote Industries to introduce the industry's first wired rearview trailer camera. I will discuss these applications and provide more detail on our progress with the MirrorEye platform later in the call.

同樣，我們繼續擴大我們的改造應用並在鄰近市場開發技術，這將繼續推動我們未來的增長。本週早些時候，我們宣布與 KLLM Transport Services 和 Frozen Food Express 建立合作夥伴關係，詳細說明他們今年打算為大約 1,000 輛新車和現有車輛配備 MirrorEye。同樣，我們宣布與 Grote Industries 合作推出業界首款有線後視拖車攝像頭。我將在稍後的電話會議中討論這些應用程序，並提供更多關於我們在 MirrorEye 平台上取得進展的細節。

As a result of continued success in our core products, this morning, we are updating our long-term financial targets to include strong backlog growth, our expectations of significant top line outperformance relative to our end markets and substantial market expansion through our 5-year plan. Our 5-year awarded business backlog grew by 6% in 2022 to $3.6 billion, supporting a 5-year compound annual growth rate of more than 7.5%, resulting in a targeted revenue of $1.3 billion to $1.5 billion and targeted EBITDA margin of 11.5% to 13.5% by 2027.

由於我們的核心產品持續取得成功，今天上午，我們正在更新我們的長期財務目標，以包括強勁的積壓增長、我們對相對於我們的終端市場的顯著頂線表現的預期以及通過我們 5 年的大幅市場擴張計劃。 2022 年，我們 5 年的已授予業務積壓增長了 6%，達到 36 億美元，支持 5 年復合年增長率超過 7.5%，目標收入為 13 億至 15 億美元，目標 EBITDA 利潤率為 11.5%到 2027 年達到 13.5%。

Page 6 summarizes our key financial metrics by quarter for 2022 and compared to both the full year 2021 and our midpoint guidance for 2023. The global macroeconomic environment continued to provide a challenging backdrop for the industry in 2022. Throughout the year, our revenue grew quarterly as material constraints began to ease and customer production volumes became less volatile. 2022 adjusted sales outperformed our underlying end markets by 4 times. This was driven by key program launches and expansions, including our Park-by-Wire programs, digital instrumentation and cluster programs and our first OEM MirrorEye program in Europe.

第 6 頁按季度總結了我們 2022 年的主要財務指標，並與 2021 年全年和我們 2023 年的中點指導進行了比較。全球宏觀經濟環境繼續為 2022 年的行業提供充滿挑戰的背景。全年，我們的收入按季度增長隨著材料限制開始緩解，客戶生產量變得不那麼不穩定。 2022 年調整後的銷售額比我們的基礎終端市場高出 4 倍。這是由關鍵項目的啟動和擴展推動的，包括我們的 Park-by-Wire 項目、數字儀表和集群項目以及我們在歐洲的第一個 OEM MirrorEye 項目。

During the year, we were able to mitigate a significant amount of the material headwinds we experienced through incremental price, driving strong EBITDA margin progression throughout the year. This resulted in base operated adjusted EBITDA margin expansion of 440 basis points in the fourth quarter relative to the first quarter. We expect continued strong growth in 2023 and EBITDA margin expansion, despite sustained elevated material costs and rapidly increasing labor costs. We continue to negotiate with our customers to offset incremental material costs with price adjustments and other supply chain improvement strategies.

在這一年中，我們能夠通過增量價格減輕我們經歷的大量不利因素，推動全年強勁的 EBITDA 利潤率增長。這導致第四季度基礎運營調整後的 EBITDA 利潤率比第一季度擴大了 440 個基點。我們預計 2023 年將繼續強勁增長，EBITDA 利潤率將擴大，儘管材料成本持續上漲且勞動力成本迅速增加。我們繼續與客戶協商，通過價格調整和其他供應鏈改進策略來抵消增量材料成本。

Similarly, we remain focused on operating cost control to leverage our existing cost structure and expand operating margins as revenue continues to grow. And Matt will provide additional detail on our '23 guidance also later in the call.

同樣，我們仍然專注於運營成本控制，以利用我們現有的成本結構並隨著收入的持續增長擴大運營利潤率。 Matt 還將在電話會議的稍後部分提供有關我們 '23 指南的更多詳細信息。

Turning to Page 7. We have made a significant investment on MirrorEye platform over the last several years as it is a key element to our long-range plan. We are seeing the benefits of these investments as MirrorEye drove approximately $34 million in sales in '22, and is expected to approximately double to $60 million in sales in 2023. Market demand continues to be strong for the first OEM MirrorEye program. We are expecting year-over-year revenue growth for this program as new model truck volumes continue to increase and current take rates annualize.

翻到第 7 頁。在過去的幾年裡，我們對 MirrorEye 平台進行了大量投資，因為它是我們長期計劃的關鍵要素。我們看到了這些投資的好處，因為 MirrorEye 在 22 年推動了約 3400 萬美元的銷售額，預計到 2023 年銷售額將翻一番，達到 6000 萬美元。市場對第一個 OEM MirrorEye 計劃的需求繼續強勁。我們預計該項目的收入將同比增長，因為新車型的卡車數量將繼續增加，並且當前的收入將按年計算。

Similarly, our first OEM program in North America is launching early in the second quarter of this year, and although North American customer has not updated take rate assumptions for this program yet based on the momentum we are seeing in North American in retrofit as well as the first OEM program, we believe there is upside to the take rate assumption in 2023. That said, our guidance reflects customer forecasted take rates resulting in approximately $6 million of sales related to the North American program this year, again, at a take rate of approximately 10%.

同樣，我們在北美的第一個 OEM 計劃將於今年第二季度初啟動，儘管北美客戶尚未更新該計劃的採用率假設，但基於我們在北美看到的改造勢頭以及第一個 OEM 計劃，我們認為 2023 年的採納率假設有上升空間。也就是說，我們的指導反映了客戶預測的採納率，導致今年與北美計劃相關的銷售額約為 600 萬美元，再次按採納率計算約 10%。

Looking forward, we continue to build momentum around our future program launches as our customer for the next OEM programs launching in Europe in 2024 has updated their take rate assumptions from approximately 25% to approximately 45% based on their anticipated (inaudible). This aligns well with our first OEM launch in Europe and reflects the expectation of continued outperformance relative to originally quoted take rates for our OEM MirrorEye programs.

展望未來，我們將繼續圍繞我們未來的計劃啟動建立勢頭，因為我們的客戶將於 2024 年在歐洲啟動下一個 OEM 計劃，並根據他們的預期（聽不清）將他們的接受率假設從大約 25% 更新為大約 45%。這與我們在歐洲的首次 OEM 發布非常吻合，並反映了相對於我們的 OEM MirrorEye 計劃最初報價的採用率，持續表現出色的預期。

As mentioned, we announced a partnership with KLLM, Transport Services and Frozen Food Express, detailing their intention to equip approximately 1,000 vehicles with MirrorEye this year. Together, those fleets represent approximately 3,500 vehicles on the road. Their decision to equip MirrorEye on new and existing trucks is a demonstration of the tremendous value proposition that MirrorEye brings to the market. Based on this announcement as well as the continued expansion of existing trials with our largest current fleet partners, we are expecting significant growth in the retrofit market in 2023. Similarly, demand continues to be strong for the system on bus applications, and we are expecting continued growth in this market in 2023 as well.

如前所述，我們宣布與 KLLM、Transport Services 和 Frozen Food Express 建立合作夥伴關係，詳細說明了他們今年打算為大約 1,000 輛汽車配備 MirrorEye。這些車隊總共約有 3,500 輛汽車在路上行駛。他們決定在新卡車和現有卡車上配備 MirrorEye，證明了 MirrorEye 為市場帶來的巨大價值主張。基於這一公告以及與我們目前最大的車隊合作夥伴的現有試驗的持續擴展，我們預計 2023 年改裝市場將出現顯著增長。同樣，對公交系統應用的需求繼續強勁，我們預計該市場在 2023 年也將繼續增長。

Overall, we are expecting retrofit and bus-related MirrorEye revenue to grow from approximately $9 million in 2022 to over $20 million this year. In addition to our current markets and applications, I want to talk further on our partnership with Grote Industries to introduce our vision systems to commercial vehicle trailer applications as we introduced not only the very first wired rearview camera in the industry, but also the ability to add additional cameras throughout and within the trailer. This application utilizes industry-standard trailer to tractor connection technology, which maximizes the speed of implementation.

總體而言，我們預計改造和公交相關的 MirrorEye 收入將從 2022 年的約 900 萬美元增長到今年的 2000 萬美元以上。除了我們目前的市場和應用之外，我想進一步談談我們與 Grote Industries 的合作夥伴關係，將我們的視覺系統引入商用車拖車應用，因為我們不僅推出了業內首款有線後視攝像頭，而且還能夠在整個拖車和拖車內添加額外的攝像機。該應用程序利用行業標準的拖車與拖拉機連接技術，最大限度地提高了實施速度。

In addition, through innovation brought forward by Stoneridge, the added trailer cameras, including the rearview camera, will be fully functional, utilizing only the existing wiring in the trailer. While this product is still early in the commercialization strategy, we are seeing a very significant interest from fleets and expect that this product will continue to expand our MirrorEye platform and provide incremental opportunities going forward. We have not currently included any benefit from this product in our 2023 guidance. Although commercialization of this product may be possible this year.

此外，通過 Stoneridge 提出的創新，增加的拖車攝像頭，包括後視攝像頭，將功能齊全，僅使用拖車中的現有佈線。雖然該產品仍處於商業化戰略的早期階段，但我們看到車隊對此非常感興趣，並預計該產品將繼續擴展我們的 MirrorEye 平台並提供更多的發展機會。我們目前尚未在我們的 2023 年指南中包含該產品的任何好處。儘管今年該產品可能實現商業化。

Our investment in MirrorEye platform is paying off with substantial year-over-year growth, improved future take rate expectations and continued momentum across our end markets and applications. We will continue to invest in the technologies and adjacent product opportunities to optimize our position in this market and drive technology innovation, improve safety and driver retention for our customers.

我們對 MirrorEye 平台的投資正在取得回報，實現了同比大幅增長、未來採用率預期的提高以及我們終端市場和應用程序的持續發展勢頭。我們將繼續投資於技術和相關產品機會，以優化我們在該市場的地位並推動技術創新，為我們的客戶提高安全性和駕駛員保留率。

Turning to Page 8. Our long-term strategy focused on transforming our portfolio to align with industry megatrends continues to drive strong long-term growth prospects. Our 5-year backlog at the end of 2022 grew by 6% versus the prior year. MirrorEye contributed to growth in our backlog as OEM take rates continue to trend up and program launches contributed positively to the 5-year window.

翻到第 8 頁。我們的長期戰略專注於轉變我們的產品組合以適應行業大趨勢，這繼續推動強勁的長期增長前景。到 2022 年底，我們 5 年的積壓訂單比上一年增長了 6%。 MirrorEye 促進了我們積壓訂單的增長，因為 OEM 接受率繼續呈上升趨勢，並且項目啟動對 5 年窗口做出了積極貢獻。

Digital driver information systems continue to ramp up and expand in 2023. Similarly, our connectivity programs continue to grow, driven by our SMART2 tachograph program, which we'll launch later this year. This program not only contributes meaningfully to our backlog, but also represents a significant aftermarket opportunity as regulatory requirements will drive retrofit applications for this product over the next several years. This retrofit opportunity, similar to the MirrorEye retrofit opportunity, is not represented in this backlog, [but] they are not awarded OEM programs. Incremental MirrorEye penetration rates, particularly in North America in new programs, where customer forecasted take rates lag our European programs, could have a significant positive impact on our backlog.

數字駕駛員信息系統在 2023 年繼續增加和擴展。同樣，在我們將於今年晚些時候推出的 SMART2 行車記錄儀計劃的推動下，我們的連接計劃繼續增長。該計劃不僅對我們的積壓訂單做出了有意義的貢獻，而且代表了一個重要的售後市場機會，因為監管要求將在未來幾年推動該產品的改造應用。這個改造機會，類似於 MirrorEye 改造機會，沒有出現在這個待辦列表中，[但]他們沒有被授予 OEM 計劃。增量 MirrorEye 滲透率，特別是在北美的新項目中，客戶預測的採用率落後於我們的歐洲項目，可能會對我們的積壓產生重大的積極影響。

Finally, Control Devices contributed to our backlog with program expansions for our Park-by-Wire actuation programs and continued growth in our electrification focused sensor applications. While 100% of our electronics portfolio is currently drivetrain agnostic, the continued progression in Control Devices will drive our target to at least 90% of total product portfolio being drivetrain agnostic by 2027. We have been successful in aligning our portfolio with industry megatrends and that strategy is paying off as our backlog continues to grow year-over-year as we expand existing programs leverage the MirrorEye platform and win new business.

最後，Control Devices 為我們的線控駐車驅動程序進行了程序擴展，並在我們以電氣化為重點的傳感器應用中持續增長，從而為我們的積壓工作做出了貢獻。雖然我們 100% 的電子產品組合目前與傳動系統無關，但控制設備的持續發展將推動我們的目標，到 2027 年至少 90% 的產品組合與傳動系統無關。我們已經成功地使我們的產品組合與行業大趨勢保持一致，並且隨著我們利用 MirrorEye 平台擴展現有項目並贏得新業務，我們的積壓工作逐年增長，戰略正在取得成效。

Turning to Page 9. We are updating our long-term revenue and EBITDA targets aligned with our updated 5-year backlog in current market conditions. Our long-term strategy has resulted in a growth profile that is expected to outperform the market by 2 to 3x over the next 5 years and positions us for consistent strong growth, resulting in substantial EBITDA margin expansion. From a midpoint of $975 million expected in 2023, we are anticipating another several years of strong growth, resulting in a long-term revenue target of $1.3 billion to $1.5 billion by 2027.

翻到第 9 頁。我們正在更新我們的長期收入和 EBITDA 目標，以符合我們在當前市場條件下更新的 5 年積壓訂單。我們的長期戰略帶來了增長前景，預計在未來 5 年內將跑贏市場 2 到 3 倍，並使我們能夠持續強勁增長，從而實現 EBITDA 利潤率的大幅增長。從 2023 年預期的 9.75 億美元中點來看，我們預計還會有幾年的強勁增長，從而實現到 2027 年 13 億美元至 15 億美元的長期收入目標。

Based on our 2027 revenue target, we are targeting an EBITDA margin between 11.5% and 13.5%. This EBITDA margin expansion will be driven by our expectation of continued contribution margin of 25% to 30%. A favorable mix primarily aligned with growth in our aftermarket products and continued leverage on our existing fixed cost structure. Over the last 4 years, I helped craft the overall strategy of the company and provided overarching support to each segment. Now as the CEO, I will focus on executing on that long-term strategy to drive sustainable performance and achieve our long-term targets.

根據我們 2027 年的收入目標，我們將 EBITDA 利潤率定在 11.5% 至 13.5% 之間。 EBITDA 利潤率的增長將受到我們對 25% 至 30% 的持續貢獻利潤率的預期推動。有利的組合主要與我們售後市場產品的增長和對我們現有固定成本結構的持續利用相一致。在過去的 4 年裡，我幫助制定了公司的整體戰略，並為每個部門提供了總體支持。現在作為首席執行官，我將專注於執行該長期戰略，以推動可持續績效並實現我們的長期目標。

Now turning to Slide 10. We remain focused on certain key priorities as a company and more specifically, within each segment to achieve our goals within this year and going forward. As we look forward to this year, we have a lot to be excited about. Overarchingly, we are focused on flawless execution of our major program launches, continuous improvement in our manufacturing facilities and prudent cost control. In Control Devices, we will continue to focus on growing our core product portfolio aligned with powertrain electrification. We will continue to invest in our actuation business as we anticipate greater opportunities as powertrains become increasingly electrified.

現在轉到幻燈片 10。作為一家公司，我們仍然專注於某些關鍵優先事項，更具體地說，在每個細分市場中，以實現我們今年和未來的目標。展望今年，我們有很多值得興奮的事情。總的來說，我們專注於完美執行我們的主要項目啟動、持續改進我們的製造設施和審慎的成本控制。在控制設備方面，我們將繼續專注於發展與動力總成電氣化相一致的核心產品組合。我們將繼續投資於我們的驅動業務，因為我們預計隨著動力系統變得越來越電氣化，會有更多機會。

During -- driven by the expected growth in our actuation business and the rotation of our temperature-sensing applications, we expect that Control Devices will continue to deliver a strong margin profile on long-term growth that will outpace our underlying end markets.

在此期間——在我們驅動業務的預期增長和我們溫度傳感應用的輪換的推動下，我們預計控制設備將繼續提供強勁的長期增長利潤率，這將超過我們的基礎終端市場。

In Electronics, our focus remains on executing on program launches, particularly our MirrorEye programs and our SMART2 tachograph programs launching this year. With the significant investment we have already made in MirrorEye, we will continue to expand our vision and safety platform. We are focused on driving advanced development through a refined and more cost-effective global engineering structure, allowing us to both expand margins and continue the pace of development that has fueled our backlog and forward growth profile.

在電子產品方面，我們的重點仍然是執行項目啟動，尤其是今年啟動的 MirrorEye 項目和 SMART2 行駛記錄儀項目。憑藉我們已經對 MirrorEye 進行的重大投資，我們將繼續擴大我們的視野和安全平台。我們專注於通過完善且更具成本效益的全球工程結構來推動高級開發，使我們能夠擴大利潤率並繼續推動我們積壓和未來增長的發展步伐。

Finally, Stoneridge Brazil will focus on continuing to grow our OEM capabilities in region to better support our global customers. This will drive steady future growth and provide a platform to continue to rotate our local portfolio to more closely align with our global business. Similarly, we will continue to leverage the talent and capabilities of our growing engineering team in Brazil to better support our global initiatives and more cost efficiently support our current programs and drive future growth.

最後，Stoneridge Brazil 將專注於繼續發展我們在該地區的 OEM 能力，以更好地支持我們的全球客戶。這將推動未來的穩定增長，並提供一個平台來繼續輪換我們的本地產品組合，以更緊密地與我們的全球業務保持一致。同樣，我們將繼續利用我們在巴西不斷壯大的工程團隊的人才和能力，更好地支持我們的全球計劃，並以更具成本效益的方式支持我們當前的項目並推動未來的增長。

Each of our segments plays a critical role in helping us achieve our long-term targets. I am committed to continuing to execute on the long-term plan Stoneridge has in place as well as driving our company-wide priorities to achieve our goals. With the right focus, we will execute at a high level, resulting in strong margin expansion on growth that will continue to outpace our underlying end markets.

我們的每個部門在幫助我們實現長期目標方面都發揮著關鍵作用。我致力於繼續執行 Stoneridge 制定的長期計劃，並推動我們公司範圍內的優先事項以實現我們的目標。有了正確的重點，我們將在高水平上執行，從而實現強勁的增長利潤率擴張，這將繼續超過我們的基礎終端市場。

Turning to Page 11. In summary, we remain focused on implementing our long-term strategy to drive sustainable, profitable growth and shareholder value creation. And with that, I will turn it over to Matt to discuss our financial results and guidance in more detail.

翻到第 11 頁。總而言之，我們仍然專注於實施我們的長期戰略，以推動可持續的盈利增長和股東價值創造。有了這個，我將把它交給馬特來更詳細地討論我們的財務結果和指導。

Thanks, Jim. Turning to Slide 13. Sales in the fourth quarter were approximately $225.2 million, an increase of 5.2% relative to the third quarter. Operating income was $6 million or 2.7% of adjusted sales. More specifically, Control Devices sales were approximately $86 million, which was a decrease of approximately 3.9% compared to the third quarter, resulting in operating income of $5.5 million or 6.4% of sales. Electronics adjusted sales of $134.8 million increased by 15% compared to the third quarter, resulting in operating income of $4.9 million or 3.7% of sales.

謝謝，吉姆。轉到幻燈片 13。第四季度的銷售額約為 2.252 億美元，比第三季度增長 5.2%。營業收入為 600 萬美元，佔調整後銷售額的 2.7%。更具體地說，Control Devices 的銷售額約為 8600 萬美元，與第三季度相比下降了約 3.9%，營業收入為 550 萬美元，佔銷售額的 6.4%。電子產品調整後銷售額為 1.348 億美元，比第三季度增長 15%，營業收入為 490 萬美元，佔銷售額的 3.7%。

Stoneridge Brazil sales of $13.1 million decreased 5.5% compared to the third quarter, resulting in operating income of $800,000 or 6.4% of sales. This morning, we are establishing guidance for our 2023 financial performance. We are guiding 2023 revenue to a midpoint of $975 million, implying an increase of approximately 16% versus our 2022 revenue, which is more than 13x our underlying weighted average end market growth. Despite continued pressure on gross margin, we are expecting to leverage our existing cost structure to drive overall margin expansion on substantial growth. We are guiding adjusted gross margin to a midpoint of 20.9%, adjusted operating income to a midpoint of 1.9% and adjusted EBITDA to a midpoint of $54.6 million or 5.6% of sales.

Stoneridge Brazil 的銷售額為 1310 萬美元，與第三季度相比下降了 5.5%，營業收入為 800,000 美元，佔銷售額的 6.4%。今天早上，我們正在為 2023 年的財務業績制定指導方針。我們將 2023 年的收入引導至 9.75 億美元的中點，這意味著比我們 2022 年的收入增長約 16%，這是我們的基礎加權平均終端市場增長的 13 倍以上。儘管毛利率持續面臨壓力，但我們預計將利用我們現有的成本結構來推動整體利潤率大幅增長。我們將調整後的毛利率調整至 20.9% 的中點，將調整後的營業收入調整至 1.9% 的中點，將調整後的 EBITDA 調整至 5460 萬美元或銷售額的 5.6% 的中點。

Our midpoint guidance implies EBITDA margin expansion of 210 basis points and almost $29 million relative to 2022. As a result, we are guiding to a midpoint of breakeven adjusted earnings per share for 2023. I will provide additional color on the drivers of expected sales and adjusted earnings per share performance later in the call.

我們的中點指引意味著 EBITDA 利潤率相對於 2022 年擴大 210 個基點和近 2900 萬美元。因此，我們指引到 2023 年盈虧平衡調整後每股收益的中點。我將提供更多關於預期銷售驅動因素的顏色和調整後的每股收益在電話會議中表現。

Turning to Page 14. Before we discuss the factors impacting operating performance in the quarter, I'd like to provide some detail on a prior quarter correction that impacted the fourth quarter. In the second quarter of 2022, the company unwound 2 net investment hedges driven by favorable FX movements and recognized a net gain of approximately $3.7 million of other nonoperating income or adjusted earnings per share of $0.10. In the fourth quarter, the company determined, we had incorrectly recognized the net gain in the income statement and reclassified the gain to other comprehensive income, resulting in reduced earnings of $3.7 million or $0.10 in the fourth quarter. On our third quarter earnings call, we guided our fourth quarter EPS to a midpoint of $0.24 with an expected revenue midpoint of $239 million.

翻到第 14 頁。在我們討論影響本季度經營業績的因素之前，我想提供一些有關影響第四季度的上一季度調整的詳細信息。 2022 年第二季度，公司解除了 2 項受有利外匯變動驅動的淨投資對沖，並確認了約 370 萬美元的其他非營業收入淨收益或 0.10 美元的調整後每股收益。公司確定，在第四季度，我們錯誤地確認了損益表中的淨收益並將收益重新分類為其他綜合收益，導致第四季度收益減少 370 萬美元或 0.10 美元。在我們的第三季度財報電話會議上，我們將第四季度每股收益指引至 0.24 美元的中點，預期收入中點為 2.39 億美元。

Reduced production volumes from customers, material constraints and our inability to reduce our short-term backlog as quickly as previously expected, resulted in a $0.07 headwind relative to our previously provided guidance. This was primarily due to lower customer production in our North American passenger car end market, COVID-related shutdowns in China impacting customer demand and material constraints impacting production for our off-highway products. These factors drove revenue underperformance of approximately $14 million versus our prior expectation. That said, commercial vehicle demand has remained strong with sales volumes outperforming prior expectations.

客戶產量減少、材料限制以及我們無法像之前預期的那樣迅速減少短期積壓訂單，導致與我們之前提供的指導相比出現 0.07 美元的逆風。這主要是由於我們北美乘用車終端市場的客戶產量下降、中國與 COVID 相關的停工影響了客戶需求以及材料限制影響了我們非公路產品的生產。這些因素導致收入低於我們之前的預期約 1400 萬美元。儘管如此，商用車需求依然強勁，銷量超出此前預期。

During the fourth quarter, we absorbed higher material, labor and other manufacturing costs versus previous expectations. Incremental manufacturing costs were primarily driven by unexpected premium freight costs, manufacturing inefficiencies and incremental labor costs. That said, we partially offset these incremental costs through reduced operating expenses, including the reduction of our annual incentive compensation program.

在第四季度，我們吸收了比之前預期更高的材料、勞動力和其他製造成本。增量製造成本主要是由意外的溢價運費、製造效率低下和增量勞動力成本驅動的。也就是說，我們通過減少運營費用，包括減少我們的年度激勵補償計劃，部分抵消了這些增量成本。

Although fourth quarter performance was lower than previous expectations, we have the ability to retime a portion of that performance through a reduction of a strong backlog in early 2023 and continued cost recovery actions. We will continue to focus on improved manufacturing performance to drive margin expansion.

儘管第四季度的業績低於此前的預期，但我們有能力通過減少 2023 年初的大量積壓訂單和持續的成本回收行動來重新安排部分業績。我們將繼續專注於提高製造績效，以推動利潤增長。

Page 17 summarizes our key financial metrics specific to Control Devices. Control Devices fourth quarter sales declined by $3.5 million versus the third quarter due to reduced customer production volumes in North America and China, partially offset by incremental revenue from the ramp up in production of actuation programs and incremental price.

第 17 頁總結了我們針對 Control Devices 的關鍵財務指標。 Control Devices 第四季度的銷售額比第三季度下降了 350 萬美元，原因是北美和中國的客戶產量減少，部分被驅動程序產量增加和價格上漲帶來的增量收入所抵消。

Fourth quarter operating income declined by 200 basis points compared to the third quarter of 2022, primarily due to higher material costs as a result of unfavorable sales mix during the quarter. Full year sales of $345.3 million were approximately in line with 2021. Full year operating income of $23.5 million or 6.9% of sales was also in line with the prior year, excluding divested products. As discussed on previous calls, we continue to transform our product portfolio to align with future growth opportunities. We expect continued revenue growth in 2023 for our -- for Control Devices as North American passenger car production continues to recover.

與 2022 年第三季度相比，第四季度營業收入下降了 200 個基點，這主要是由於本季度不利的銷售組合導致材料成本上升。全年銷售額為 3.453 億美元，與 2021 年大致持平。全年營業收入為 2350 萬美元，佔銷售額的 6.9%，不包括剝離的產品，也與上年持平。正如在之前的電話會議上所討論的那樣，我們將繼續轉變我們的產品組合，以適應未來的增長機會。隨著北美乘用車生產的持續復甦，我們預計 2023 年我們的控制設備收入將持續增長。

Our actuation programs on several electrified vehicle platforms are continuing to see demand that outpaces the underlying market, resulting in planned production expansions that will drive above-market topline growth in 2023. In 2023, we expect Control Devices sales and operating margin to improve relative to last year as we take advantage of incremental revenue and focus on continued supply chain improvements.

我們在幾個電動汽車平台上的驅動程序繼續看到需求超過基礎市場，導致計劃的生產擴張將推動 2023 年高於市場的收入增長。到 2023 年，我們預計控制設備的銷售和營業利潤率相對於去年，我們利用增量收入並專注於持續改進供應鏈。

Page 16 summarizes our key financial metrics specific to Electronics. Electronics fourth quarter sales increased by $17.5 million or 15% compared to the third quarter. Full year sales were $475.4 million, which was an increase of approximately 24% compared to the prior year, primarily driven by the continued ramp-up of several key program launches, including the first MirrorEye program and the ramp-up of large programs related to our digital driver information systems.

第 16 頁總結了我們針對電子產品的關鍵財務指標。電子產品第四季度銷售額比第三季度增長 1750 萬美元或 15%。全年銷售額為 4.754 億美元，與上年相比增長約 24%，這主要是由於幾個關鍵計劃的持續增加所推動，包括第一個 MirrorEye 計劃和與我們的數字駕駛員信息系統。

Fourth quarter performance would have been even stronger, but material limitations contributed to reduced sales in our off-highway vision and safety products. We are expecting these material issues to subside as we move through the first quarter of 2023 and expect to be able to make up some portion of the lost production early this year. We expect continued strong sales in 2023 due to the continued ramp-up of these programs and the launch of our second MirrorEye program at the beginning of the second quarter in North America.

第四季度的業績本可以更強勁，但材料限制導致我們的非公路用視覺和安全產品銷量下降。我們預計，隨著 2023 年第一季度的到來，這些重大問題將會消退，並有望在今年年初彌補部分產量損失。由於這些計劃的持續增加以及我們第二季度初在北美推出的第二個 MirrorEye 計劃，我們預計 2023 年的銷售將繼續強勁。

Fourth quarter adjusted operating income declined by 90 basis points due to the continued impact of elevated material labor costs, partially offset by fixed cost leverage from higher sales. Operating margins improved in the second half of 2022 due to successful negotiations with customers to recover incremental costs through price recovery and other supply chain actions. Full year adjusted (inaudible) 30 basis points versus 2021, largely due to strong contribution margin from substantial incremental revenue.

第四季度調整後的營業收入下降了 90 個基點，原因是材料勞動力成本上升的持續影響，部分被銷售額增加帶來的固定成本槓桿所抵消。 2022 年下半年營業利潤率有所提高，原因是與客戶成功談判，通過價格恢復和其他供應鏈行動收回了增量成本。與 2021 年相比，全年調整後（聽不清）30 個基點，這主要是由於大量增量收入帶來的強勁貢獻率。

Looking forward, we will continue to focus on flawless execution of new program launches and ramp-ups. Although we expect margins to continue to be challenged in the first half of the year, we plan to recover a significant portion of these incremental costs through supply chain improvements and customer price recovery actions. As a result, we expect continued margin expansion in 2023.

展望未來，我們將繼續專注於完美執行新項目的啟動和升級。儘管我們預計利潤率在今年上半年將繼續受到挑戰，但我們計劃通過供應鏈改進和客戶價格恢復行動來收回這些增量成本的很大一部分。因此，我們預計 2023 年利潤率將繼續擴大。

Electronics is well positioned to take advantage of significant future growth and margin expansion as a result of a strong product portfolio, a substantial backlog of awarded programs, a focus on an efficient long-term cost structure and continued expansion of our opportunities related to the MirrorEye platform.

由於強大的產品組合、大量積壓的獲獎項目、專注於高效的長期成本結構以及我們與 MirrorEye 相關的機會的持續擴展，電子產品處於有利地位，可以利用顯著的未來增長和利潤擴張平台。

Page 17 summarizes our key financial metrics specific to Stoneridge Brazil. Stoneridge Brazil's full year sales totaled approximately $52.3 million, a decrease of $4.5 million or 5.5% relative to the prior year, primarily due to lower sales volumes, partially offset by the favorable impact of foreign currency. Full year adjusted operating income increased by approximately 50 basis points relative to the prior year, primarily driven by lower SG&A spend, resulting in an adjusted operating margin of 5.1%.

第 17 頁總結了我們針對 Stoneridge Brazil 的關鍵財務指標。 Stoneridge Brazil 的全年銷售額總計約為 5230 萬美元，比上年減少 450 萬美元或 5.5%，這主要是由於銷量下降，部分被外彙的有利影響所抵消。全年調整後營業收入較上年增長約 50 個基點，主要受 SG&A 支出減少的推動，調整後營業利潤率為 5.1%。

Today, we are excited to announce a new business award for infotainment systems to one of the market leaders of OEM commercial vehicles in Brazil. This award is expected to launch in 2024, with a peak annual revenue of approximately $4 million, which represents approximately 7.6% of total 2022 sales for the segment. This is not only financially significant for the segment, but it furthers our expansion of local OEM programs to better support our global customers. We are successfully shifting our portfolio in Brazil to more closely align with our global growth initiatives. Despite continued macroeconomic challenges in Brazil, we expect revenue and operating margins to remain stable in 2023. We remain focused on utilizing local engineering resources to support our global electronics business as we continue to focus on a more cost-efficient global engineering footprint.

今天，我們很高興地宣布一項新的信息娛樂系統業務獎授予巴西 OEM 商用車市場領導者之一。該獎項預計將於 2024 年啟動，年收入峰值約為 400 萬美元，約佔該部門 2022 年總銷售額的 7.6%。這不僅對該部門具有重要的財務意義，而且進一步擴大了我們本地 OEM 計劃的擴展，以更好地支持我們的全球客戶。我們正在成功地改變我們在巴西的投資組合，以更緊密地配合我們的全球增長計劃。儘管巴西的宏觀經濟持續面臨挑戰，但我們預計 2023 年收入和營業利潤率將保持穩定。隨著我們繼續專注於更具成本效益的全球工程足跡，我們將繼續專注於利用本地工程資源來支持我們的全球電子業務。

Turning to Page 18. Fourth quarter net debt was $114.5 million, a decrease of approximately $22 million from the third quarter, driven primarily by strong cash performance at the end of the year. At the beginning of 2023, we anticipated that continued material cost and production headwinds forecasted for the first half of the year would result in a relatively lower EBITDA and worked with our bank group to amend our existing credit facility. The amendment modified the first quarter of the year to include a 4.75x leverage ratio and second quarter of 2023 to include a 4.25x leverage ratio with an interest coverage ratio of 3x in both quarters. The amendment returns to a 3.5x leverage ratio and interest coverage ratio going forward.

翻到第 18 頁。第四季度淨債務為 1.145 億美元，比第三季度減少約 2200 萬美元，這主要是由於年底強勁的現金表現。 2023 年初，我們預計上半年持續的材料成本和生產逆風將導致 EBITDA 相對較低，並與我們的銀行集團合作修改我們現有的信貸額度。該修正案將今年第一季度的槓桿率修改為 4.75 倍，將 2023 年第二季度的槓桿率修改為 4.25 倍，兩個季度的利息覆蓋率均為 3 倍。該修正案恢復了 3.5 倍的槓桿率和利息覆蓋率。

We are confident the company has ample liquidity and flexibility to operate in the current macroeconomic conditions. As we move into 2023, we remain focused on efficient cash management to help return our leverage ratio to more normalized rates as we continue to improve financial performance and expand our earnings with substantial growth. We expect our net debt-to-EBITDA ratio to return to a more normalized level by the end of the year. We are targeting a leverage ratio under 2.5x. We will continue to strengthen our balance sheet, helping to provide a steady foundation that will allow us to capitalize on our long-term opportunities.

我們相信該公司擁有充足的流動性和靈活性，可以在當前的宏觀經濟條件下運營。隨著我們進入 2023 年，我們將繼續專注於有效的現金管理，以幫助我們的槓桿率恢復到更正常的水平，因為我們將繼續改善財務業績並通過大幅增長擴大我們的收益。我們預計我們的淨債務與 EBITDA 比率將在年底前恢復到更正常的水平。我們的目標是槓桿率低於 2.5 倍。我們將繼續加強我們的資產負債表，幫助提供一個穩定的基礎，使我們能夠利用我們的長期機會。

Turning to Page 19. We expect strong growth in 2023, driving midpoint revenue guidance to $975 million or 16% year-over-year growth. Based on current IHS forecast, we are expecting market production to drive approximately $10 million of growth or 1.2% in our weighted average end markets year-over-year. Driven by our specific growth opportunities, we are expecting to outperform our underlying weighted average end markets by approximately 13x in 2023. We continue to significantly outpace our underlying end markets, creating a runway for sustainable long-term growth.

翻到第 19 頁。我們預計 2023 年將實現強勁增長，推動中點收入指引達到 9.75 億美元或同比增長 16%。根據目前的 IHS 預測，我們預計市場產量將推動我們的加權平均終端市場同比增長約 1000 萬美元或 1.2%。在我們特定增長機會的推動下，我們預計到 2023 年我們的表現將超過我們的基礎加權平均終端市場約 13 倍。我們繼續顯著超過我們的基礎終端市場，為可持續的長期增長創造一條跑道。

In the first quarter of the year, we are still seeing the residual impacts of reduced demand in China driven by the ramp-up in COVID-19 at the end of 2022. Similarly, material availability challenges in our off-highway products led to substantially reduced sales in January relative to our normalized run rate. As such, while we expect to recover a portion of these reductions in the quarter and more in the second quarter, we are expecting quarterly revenue to be approximately flat to the fourth quarter of 2022 and the first quarter of 2023.

在今年第一季度，我們仍然看到 2022 年底 COVID-19 的增加導致中國需求減少的殘餘影響。同樣，我們的非公路產品的材料可用性挑戰導致大幅相對於我們的正常運行率，1 月份的銷售額有所下降。因此，雖然我們預計將在本季度恢復部分減少，並在第二季度恢復更多，但我們預計季度收入將與 2022 年第四季度和 2023 年第一季度大致持平。

Looking beyond the first quarter, we are expecting approximately 5% to 10% growth from the first to second quarter as material availability improves. Our first OEM program -- our first OEM MirrorEye program launches in North America, and our newly installed SMT line in Europe drives short-term backlog reduction. This will imply revenue of $225 million in the first quarter and $235 million to $245 million in the second quarter.

展望第一季度之後，隨著材料可用性的提高，我們預計第一季度至第二季度將增長約 5% 至 10%。我們的第一個 OEM 計劃——我們的第一個 OEM MirrorEye 計劃在北美啟動，我們在歐洲新安裝的 SMT 生產線推動了短期積壓減少。這意味著第一季度收入為 2.25 億美元，第二季度收入為 2.35 億美元至 2.45 億美元。

Page 20 summarizes our expectations for full year adjusted earnings per share in 2023 relative to 2022. We are expecting contribution margins aligned with our historical averages of 25% to 30% on roughly $117 million of nonprice revenue growth in 2023, resulting in $0.87 of EPS this year. As supply chain volatility eases and the production environment normalizes, we expect to continue to drive improved performance in our manufacturing facilities. We expect operational improvement through reduced overtime due to stability in production schedules, continuous improvement activities and leverage on fixed costs. Partially offsetting the incremental EPS driven by strong volumes and continued manufacturing and operating improvement, there is a significant burden related to incremental labor costs from 2022 to 2023. Inflationary pressure has driven annual labor increases above our historical average.

第 20 頁總結了我們對 2023 年全年調整後每股收益相對於 2022 年的預期。我們預計貢獻利潤率與 25% 至 30% 的歷史平均水平一致，2023 年非價格收入增長約 1.17 億美元，每股收益為 0.87 美元今年。隨著供應鏈波動的緩解和生產環境的正常化，我們預計將繼續推動我們製造設施的績效提升。由於生產計劃的穩定性、持續的改進活動和固定成本的槓桿作用，我們期望通過減少加班時間來改善運營。從 2022 年到 2023 年，勞動力成本增加帶來的巨大負擔部分抵消了由強勁的銷量和持續的製造和運營改善推動的每股收益增量。通脹壓力推動年度勞動力增長超過我們的歷史平均水平。

Similarly, we expect a normalization of our annual incentive cost programs back to targeted levels in 2023 after they were reduced in 2022. As a result, we are forecasting a $0.42 headwind relative to 2022 related to labor costs. We do not expect the same relative level of annual incremental costs going forward as inflation subsides and our topline growth outpaces structural cost growth to drive fixed cost leverage.

同樣，我們預計我們的年度激勵成本計劃在 2022 年減少後將在 2023 年恢復到目標水平。因此，我們預計與 2022 年相比，與勞動力成本相關的阻力為 0.42 美元。隨著通脹消退以及我們的收入增長超過結構性成本增長以推動固定成本槓桿，我們預計未來年度增量成本不會達到相同的相對水平。

Finally, we are expecting incremental interest expense in 2023 as rising interest rates continue to impact the interest rate on our credit facility and an increased average annual debt balance relative to last year. We expect incremental interest of approximately $5.5 million relative to 2022 or approximately $0.15. As I discussed previously, we remain committed to reducing our debt balance to reduce our interest burden and drive expanded earnings. As a result, we are expecting approximately breakeven adjusted EPS in 2023. Despite a challenging macroeconomic backdrop, we continue to drive significantly above-market growth, margin expansion and substantial earnings growth year-over-year.

最後，我們預計 2023 年的利息支出將增加，因為利率上升繼續影響我們信貸額度的利率，並且年平均債務餘額與去年相比有所增加。我們預計相對於 2022 年增加的利息約為 550 萬美元或約 0.15 美元。正如我之前所討論的，我們仍然致力於減少我們的債務餘額，以減輕我們的利息負擔並推動擴大收益。因此，我們預計 2023 年調整後的每股收益將大致達到盈虧平衡。儘管宏觀經濟背景充滿挑戰，但我們繼續推動顯著高於市場的增長、利潤率擴張和同比大幅盈利增長。

Finally, similar to our expectations of revenue growth over the course of the year, we expect that adjusted EPS will follow a similar cadence. The challenges we faced in December related to production volumes, particularly in our off-highway business in China, persisted through January. We have seen significant production ramp up in February and are forecasting even better sales in March, which should drive an improved sales trajectory into the second quarter. A slow start to production, incremental annual labor costs and material costs that remain elevated will result in depressed margins for the first quarter.

最後，與我們對全年收入增長的預期類似，我們預計調整後的每股收益將遵循類似的節奏。我們在 12 月面臨的與產量相關的挑戰，尤其是我們在中國的非公路用車業務，一直持續到 1 月。我們已經看到 2 月份的產量大幅增加，並預測 3 月份的銷量會更好，這應該會推動第二季度的銷售軌蹟有所改善。生產啟動緩慢、年度勞動力成本增加和材料成本居高不下，將導致第一季度利潤率低迷。

That said, we continue to negotiate appropriate price increases with our customers to offset these costs. However, we expect the impact of price recoveries to lag these incremental costs. We expect that this will result in a below breakeven operating margin for the first quarter and EPS of approximately negative $0.30. This assumes that as we continue negotiations with customers regarding price increases, we will recognize only a minimal impact of incremental prices in the first quarter with the expectation that we will recognize retroactive price increases as these negotiations are completed.

也就是說，我們將繼續與客戶協商適當的提價以抵消這些成本。然而，我們預計價格回升的影響將滯後於這些增量成本。我們預計這將導致第一季度營業利潤率低於盈虧平衡點，每股收益約為負 0.30 美元。這是假設當我們繼續與客戶就價格上漲進行談判時，我們只會認識到第一季度增量價格的影響很小，並期望我們會在這些談判完成後認識到追溯性價格上漲。

We expect that production normalization and growth along with negotiated retroactive price increases will drive above breakeven operating performance in the second quarter with EPS of approximately negative $0.10. We are expecting to exit the second quarter with gross operating and EBITDA margins that exceed our annual guidance as revenue continues to ramp up over the second half of the year.

我們預計生產正常化和增長以及協商的追溯價格上漲將推動第二季度的盈虧平衡經營業績高於盈虧平衡，每股收益約為負 0.10 美元。隨著今年下半年收入繼續增加，我們預計第二季度的總營業利潤率和 EBITDA 利潤率將超過我們的年度指導。

Additionally, as is typical with new program launches, we expect margins to improve as our recently launched and to be launched programs continue to mature this year and going forward. This should result in a much stronger second half earnings performance and a trajectory on both the top and bottom line that will drive continued earnings expansion in 2024. We are focused on driving earnings growth in 2023 through efficient manufacturing processes, aggressive but appropriate price negotiations and prudent management of our fixed cost structure.

此外，與新項目啟動的典型情況一樣，我們預計隨著我們最近啟動和將要啟動的項目在今年和未來繼續成熟，利潤率將會提高。這應該會帶來更強勁的下半年盈利表現，以及將推動 2024 年盈利持續增長的頂線和底線軌跡。我們專注於通過高效的製造流程、積極但適當的價格談判和審慎管理我們的固定成本結構。

Moving to Slide 21. We expect significant revenue growth, EBITDA margin expansion and adjusted EPS growth in 2023 as we continue to focus on opportunities to recover and improve gross margin, execute on a cost structure aligned with current market conditions and flex our variable cost structure efficiently should macroeconomic conditions change.

轉到幻燈片 21。我們預計 2023 年收入將顯著增長，EBITDA 利潤率將擴大，調整後的每股收益將增長，因為我們將繼續關注恢復和提高毛利率的機會，執行與當前市場條件相符的成本結構，並調整我們的可變成本結構如果宏觀經濟條件發生變化，則有效。

Longer term, Stoneridge remains well positioned to significantly outpace our underlying markets due to the strength of our awarded business backlog and our product portfolio aligned with industry megatrends. Our contributions on incremental revenue, our ability to leverage our existing fixed cost structure and our continued focus on material cost improvement, price and supply chain strategy provide a strong foundation for the long-term target of $1.3 billion to $1.5 billion of revenue and an 11.5% to 13.5% EBITDA margin by 2027. As always, driving shareholder value is at the forefront of all of Stoneridge's strategic initiatives.

從長遠來看，由於我們獲得的業務積壓的實力以及我們的產品組合符合行業大趨勢，Stoneridge 仍然處於領先地位，可以顯著超越我們的基礎市場。我們對增量收入的貢獻、我們利用現有固定成本結構的能力以及我們對材料成本改進、價格和供應鏈戰略的持續關注，為 13 億至 15 億美元的收入和 11.5 的長期目標奠定了堅實的基礎到 2027 年將 EBITDA 利潤率提高到 13.5%。一如既往，推動股東價值是 Stoneridge 所有戰略舉措的重中之重。

With that, I will open up the call for questions.

有了這個，我將打開問題的電話。

(Operator Instructions)

（操作員說明）

Our first question will come from Justin Long of Stephens.

我們的第一個問題將來自 Stephens 的 Justin Long。

So I just wanted to take a step back. The company's results have obviously been pretty volatile recently. And while revenue performance seems to be a bright spot as you outperform the market, there's been a struggle taking this to the bottom line. Jim, as you step into the CEO role, what are the steps you plan to take to, number one, improve the predictability of earnings? And number two, improve the profitability of this company?

所以我只想退後一步。該公司的業績最近顯然波動很大。雖然收入表現似乎是一個亮點，因為你跑贏了市場，但一直在努力將其轉化為底線。吉姆，當你擔任首席執行官一職時，你打算採取哪些步驟來提高收益的可預測性？第二，提高這家公司的盈利能力？

Thanks, Justin, for the question. I think the steps I'm taking actually will address both of those concerns. And where I'm focused more so going forward is on execution, driving rigor and discipline in the company across all elements of the business, making sure that we have a program management focus. By doing so, we will seriously minimize the potential for any surprises that has -- historically had the opportunity to creep in to our numbers. And I think by holding us accountable to these, I'll say, elevated elements and rigor and discipline across all elements of the business, I think that we'll more successfully drive excellence and execution and again, drive out issues that have, again, historically crapped in.

謝謝賈斯汀提出這個問題。我認為我正在採取的步驟實際上將解決這兩個問題。我更關注的是執行，在公司的所有業務要素中推動嚴謹和紀律，確保我們有一個項目管理重點。通過這樣做，我們將認真地減少任何意外的可能性 - 歷史上有機會悄悄進入我們的數字。而且我認為通過讓我們對這些負責，我會說，在業務的所有元素中提升元素和嚴謹性和紀律，我認為我們將更成功地推動卓越和執行，並再次消除已經存在的問題, 歷史上被淘汰了。

Okay. And I guess, secondly, when I look at the 2023 guidance, your implied contribution margins are in the high teens, just using the midpoint of the outlook. I know you called out the wage inflation and incentive comp, but I feel like those are headwinds that you probably saw coming on the horizon for a while. So I guess my question is, why not get more aggressive with price? And it sounds like you are pushing price, but is there more of an opportunity in response to the higher supply chain costs and the higher labor costs that you're seeing in addition to the fact that the company's margin profile is below target.

好的。我想，其次，當我查看 2023 年的指導時，您的隱含貢獻利潤率處於高位，僅使用前景的中點。我知道你提到了工資通脹和激勵補償，但我覺得這些是你可能在一段時間內看到的不利因素。所以我想我的問題是，為什麼不在價格上變得更加激進呢？聽起來你在推高價格，但除了公司的利潤率低於目標這一事實之外，還有更多的機會來應對更高的供應鏈成本和更高的勞動力成本。

Yes, Justin, thanks for the question. The EBITDA contribution margins next year are definitely influenced by a significantly increased burden on inflationary labor costs. So while we could see some of that coming, it is substantially greater than what we've experienced in prior years across the business. Now that said, like you suggested, as those conditions change, like I said in the prepared remarks, we are taking aggressive, but appropriate actions with our customers and even beyond that with our supply chain, with our -- with engineering design of existing products to make sure that we are recovering those costs, but also maximizing our opportunity to improve margin as we go forward. Like we've said previously, we have expected incremental costs. We do expect that our recovery will lag those costs. But as you saw last year, we were extremely successful in offsetting those costs through the playbook that we ran with customers, supply chain and product engineering.

是的，賈斯汀，謝謝你的提問。明年的 EBITDA 貢獻率肯定會受到通貨膨脹勞動力成本負擔顯著增加的影響。因此，雖然我們可以看到其中一些即將到來，但它比我們前幾年在整個業務中所經歷的要大得多。既然如此，就像您建議的那樣，隨著這些條件的變化，就像我在準備好的發言中所說的那樣，我們正在對我們的客戶採取積極但適當的行動，甚至超越我們的供應鏈，我們的 - 現有的工程設計產品，以確保我們正在收回這些成本，同時也最大限度地增加我們在前進過程中提高利潤率的機會。正如我們之前所說，我們預計會增加成本。我們確實預計我們的複蘇將落後於這些成本。但正如你去年看到的那樣，我們通過與客戶、供應鍊和產品工程一起運行的劇本，非常成功地抵消了這些成本。

So there's certainly that opportunity to continue to be aggressive and we are. In all of those cases that we expect will drive a run rate for the second half of the year that is significantly improved to the first, similar to what we saw last year and provide a really good trajectory as we head into continued growth beyond next year.

所以肯定有機會繼續積極進取，我們就是。在所有這些情況下，我們預計將推動今年下半年的運行率顯著提高到上半年，類似於我們去年看到的情況，並在我們進入明年以後的持續增長時提供一個非常好的軌跡.

Okay. And as I think about what you said about the first half versus the second half, so from an EPS perspective, first half guidance is negative $0.40, which implies second half of positive $0.40 to get to the midpoint of the guidance. How much of that improvement first half to second half is just a function of price versus other items? I mean, I know the implied revenue guidance is a little bit better in the second half, but maybe you could just give us a sense for your level of visibility essentially into the second half.

好的。當我考慮你所說的關於上半年與下半年的內容時，從每股收益的角度來看，上半年的指導值為負 0.40 美元，這意味著下半年為正 0.40 美元以達到指導的中點。上半年到下半年的改善有多少只是價格與其他項目的函數？我的意思是，我知道下半年隱含的收入指引會好一些，但也許你可以讓我們大致了解下半年的能見度水平。

Yes. So Justin, it's a great question. The -- we have a lot of visibility on the top line because like we've talked about in the past, a good portion of that is OEM programs that are obviously awarded and have visibility into production volumes. We've obviously seen macroeconomic conditions be volatile over the last 18 months. So I wouldn't say that we have perfect visibility there, but we have good visibility to that topline growth, including the launch of the North American MirrorEye program and the SMART2 program, which are both incremental this year as we go into the second half.

是的。所以賈斯汀，這是一個很好的問題。 - 我們在頂線有很多知名度，因為就像我們過去談到的那樣，其中很大一部分是 OEM 計劃，這些計劃顯然已獲得獎勵並且對產量有可見性。在過去的 18 個月裡，我們顯然已經看到宏觀經濟狀況動盪不安。所以我不會說我們在那裡有完美的可見性，但我們對收入增長有很好的可見性，包括北美 MirrorEye 計劃和 SMART2 計劃的啟動，隨著我們進入下半年，這兩個計劃在今年都是增量的.

So top line -- there is still some variability, obviously, in aftermarket or non-OE products. But top line, we've got pretty good visibility to the cadence of our expectations there. That does drive incremental contribution, obviously, in line with those historical averages as we go through the quarters of the year because the incremental labor cost will have already been considered in the beginning of the year. There is -- we do expect and there is assumption of incremental price that obviously impacts we believe retroactively once those price negotiations are complete. Again, similar to last year, but will impact the second half of the year as well on incremental volume. So it does have a compounding effect as you increase price.

所以最重要的是——顯然，在售後市場或非 OE 產品中仍然存在一些可變性。但最重要的是，我們對那裡的期望節奏有了很好的了解。顯然，這確實推動了增量貢獻，這與我們今年各個季度的歷史平均水平一致，因為在年初就已經考慮了增量勞動力成本。一旦這些價格談判完成，我們確實期望並且有增量價格的假設，這顯然會影響我們相信追溯。同樣，與去年類似，但將影響今年下半年的增量。因此，當您提高價格時，它確實會產生復合效應。

Got it. And I guess last one for me is on the Board. There have been some changes recently. You've talked about this refreshment strategy. But can you share what the catalyst was to drive these changes? And why this is the right timing in the midst of a CEO transition as well?

知道了。我想對我來說最後一個是董事會成員。最近發生了一些變化。您已經談到了這種提神策略。但是您能分享一下推動這些變化的催化劑是什麼嗎？為什麼這也是 CEO 過渡期間的正確時機？

Yes. So Justin, I'll take the first start, and then maybe Jim can chime in. I don't want to speak for the Board, I'm not on the board, but you can see that there's been a progression of Board transformation over the last several years that starts with the appointment of Frank Sklarsky, who is our Audit Committee Chairman and has continued now with the announcement of our most recent Board member, Carsten. So I think, you've seen the Board has been very clear with our expectation of continued transformation to align expertise with the business, and they've delivered on that over the last several years.

是的。所以賈斯汀，我先開始，然後也許吉姆可以插話。我不想代表董事會發言，我不在董事會，但你可以看到董事會轉型取得了進展在過去的幾年裡，從任命 Frank Sklarsky 開始，他是我們的審計委員會主席，現在繼續宣布我們最近的董事會成員 Carsten。所以我認為，您已經看到董事會非常清楚我們期望繼續轉型以將專業知識與業務保持一致，並且他們在過去幾年中已經實現了這一目標。

And Jim, I don't know if -- being on the board, if you have any...

吉姆，我不知道是否——作為董事會成員，如果你有任何……

I think it is a normal natural progression. The Board is very cognizant of its tenure. They're also very cognizant of the skills necessary in a business that is changing dramatically. We're going from an automotive parts company to a systems company, more technology-focused company and sometimes skills required to ensure that you've got good support of the management team from the Directors in the Board. Sometimes that needs some refreshment, and the Board is very cognizant of that and is willing to allow for those adjustments and positions to be made.

我認為這是一個正常的自然進程。董事會非常清楚自己的任期。他們也非常了解瞬息萬變的企業所需的技能。我們正在從一家汽車零部件公司轉變為一家系統公司，一家更加註重技術的公司，有時還需要一些技能來確保您得到董事會董事對管理團隊的良好支持。有時這需要一些更新，董事會非常清楚這一點，並願意允許進行這些調整和立場。

Our next question will come from Gary Prestopino of Barrington Research.

我們的下一個問題將來自 Barrington Research 的 Gary Prestopino。

A couple of questions. First of all, on the rate of revenue that you're projecting for the MirrorEye business. Does that -- given that level of volume that you're doing, does that become adjusted EBITDA margin accretive to bottom line results in 2023? Or does it flatline it? Or is it lower than what you're looking at?

幾個問題。首先，關於您為 MirrorEye 業務預測的收入率。這是否 - 考慮到您正在做的交易量水平，這是否會成為調整後的 EBITDA 利潤率增加到 2023 年的底線結果？或者它是否使它變平？或者它比你看到的要低？

Gary, I would say, with a ramp-up in that program that percentage-wise is so substantial year-over-year, you will see accretive EBITDA performance from that level of growth. And we expect that level of growth to continue, obviously, as we are increasing the forecasted take rates on the second European launch substantially, almost double and obviously, have a relatively lower take rate on the first North American program currently forecasted that we rightfully saw we're optimistic around given what we're seeing in other OEM products or our first OEM program and the MirrorEye retrofit momentum in North America.

加里，我想說的是，隨著該計劃的增加，該計劃的百分比同比增長如此之大，您將看到該增長水平帶來的 EBITDA 業績增長。顯然，我們預計這種增長水平將繼續下去，因為我們正在大幅提高第二個歐洲發射的預測採用率，幾乎翻了一番，而且顯然，目前預測我們正確看到的第一個北美計劃的採用率相對較低鑑於我們在其他 OEM 產品或我們的第一個 OEM 計劃中看到的情況以及北美的 MirrorEye 改造勢頭，我們對此持樂觀態度。

So it will have an accretive impact this year, and I expect that, that will continue and accelerate because of the substantial growth opportunity in not only this program, but this platform, this vision and safety platform going forward.

因此，它將在今年產生累積影響，我預計，這將繼續並加速，因為不僅是這個項目，還有這個平台、這個願景和安全平台的巨大增長機會。

Okay. And I want to get back to some of those new endeavors with MirrorEye in a second. But what I want to call -- direct your attention to is the sales guidance for this year. And I guess the prior question was the -- how do you -- what is your confidence level in that sales guidance. So if I look at -- you're looking at a $10 million lift from IHS production forecast, which that could very much move around. That's just based on what production could be. But the $108 million to $138 million of specific growth and price recoveries, how much of that is actually in the books? And how much of that has to come from maybe increased -- better than increased production rates, better than increase price recoveries. I'm just trying to get an idea of the visibility, the confidence you have in these numbers because as the other analysts mentioned, the numbers have been all over the place. It's a situation where you start the year off with a certain cadence of guidance, and then as the year goes by, things are less than what we initially expected.

好的。我想馬上回到 MirrorEye 的一些新嘗試。但我想呼籲——請注意今年的銷售指導。我想之前的問題是——你如何——你對該銷售指南的信心水平是多少。因此，如果我看 - 你正在尋找 IHS 生產預測 1000 萬美元的提升，這可能會發生很大變化。那隻是基於可能的生產。但是 1.08 億美元到 1.38 億美元的特定增長和價格復甦，其中有多少是真正在賬面上的？其中有多少必須來自可能會增加——比提高生產率更好，比提高價格恢復更好。我只是想了解可見性，你對這些數字的信心，因為正如其他分析師提到的那樣，這些數字無處不在。在這種情況下，您以一定的指導節奏開始新的一年，然後隨著時間的流逝，事情比我們最初預期的要少。

Yes. I appreciate the question, Gary. So I would say a couple of things. One, the Stoneridge-specific drivers there are not -- do not require some incremental market performance versus what production levels are showing or any sort of price outperformance. It's what we expect from a price perspective and what the market is suggesting from a production perspective. Those things are much more related to content that is specific to us on those vehicles. So for example, our digital information -- our digital driver information systems are annualizing at very high risk as the new model trucks ramp up. That provides a significant annualized tailwind versus last year. We talked about MirrorEye.

是的。我很欣賞這個問題，加里。所以我想說幾件事。第一，沒有特定於 Stoneridge 的驅動因素——不需要一些增量市場性能與生產水平所顯示的或任何類型的價格表現。這是我們從價格角度所期望的，也是市場從生產角度所暗示的。這些東西與我們在這些車輛上的特定內容更相關。因此，例如，我們的數字信息——我們的數字駕駛員信息系統隨著新型卡車的增加而每年都面臨著非常高的風險。與去年相比，這提供了重要的年度順風。我們談到了 MirrorEye。

So Gary, to your comment on predictability, it obviously relies on production volumes, but it is specifically driven year-over-year by something that is specific to us, not just peanut butter to production volumes. Similarly, on the MirrorEye programs, we talked about all of the incremental revenue there. It's driven by a new program. It's driven by the annualization of higher take rates for a full year on full year production volume for our existing program, and the expectation that we will continue the momentum we're seeing in the retrofit market. So of those things, the retrofit market obviously has more variability, but is also a relatively smaller portion of that overall revenue pie.

所以加里，關於你對可預測性的評論，它顯然依賴於產量，但它是由我們特定的東西逐年驅動的，而不僅僅是花生醬對產量的影響。同樣，在 MirrorEye 項目中，我們談到了那裡所有的增量收入。它由一個新程序驅動。這是由於我們現有計劃全年產量的全年更高采用率的年度化，以及我們將繼續保持我們在改造市場上看到的勢頭的預期。因此，在這些事情中，改裝市場顯然具有更大的可變性，但在整個收入蛋糕中所佔的比例也相對較小。

So if you think about the relative rank of volatility, that's how I would think there for MirrorEye. And then similarly, we are launching a new connectivity product with SMART2. We're seeing the ramp up of some of those recently launched connectivity programs, and we're seeing continued expansion on the actuation side. We talked a little bit about some of the platforms that we're on, for example, with Park-by-Wire, right, in those electrified vehicle platforms. For example, the (inaudible), we've talked about that historically being one of our largest content vehicles. That platform for Ford is performing tremendously. So it's Stoneridge-specific growth, Gary, around forecastable OEM content that's growing, some variability from the aftermarket, although less so than the OEM side and being on the right platforms with the right customers to facilitate that growth versus the underlying weighted average end market.

因此，如果你考慮波動率的相對等級，那就是我對 MirrorEye 的看法。然後類似地，我們將推出帶有 SMART2 的新連接產品。我們看到一些最近啟動的連接程序正在增加，並且我們看到驅動方面的持續擴展。我們談到了一些我們正在使用的平台，例如，在那些電動汽車平台上使用 Park-by-Wire。例如，（聽不清），我們已經談到它在歷史上是我們最大的內容載體之一。福特的這個平台表現非常出色。所以這是 Stoneridge 特定的增長，加里，圍繞可預測的 OEM 內容正在增長，售後市場的一些可變性，儘管不如 OEM 方面那麼多，並且在正確的平台上有正確的客戶以促進與潛在加權平均終端市場的增長.

Okay. That's very helpful. So I want to get back to the MirrorEye slide, Slide 7 for -- on my presentation. So this partnership with Grote Industries -- industry to introduce the first wired rearview trailer camera. I mean that strikes me as interesting and possibly, a big breakthrough for this product overall because there's got to be more trailers out in the market than there are the trucks that drive them. Is that a correct assumption on my part?

好的。這很有幫助。所以我想回到我的演示文稿中的 MirrorEye 幻燈片，幻燈片 7。因此，這次與 Grote Industries 建立合作夥伴關係——業界推出首款有線後視拖車攝像頭。我的意思是，這讓我覺得很有趣，而且可能是該產品總體上的一個重大突破，因為市場上的拖車數量肯定比驅動它們的卡車數量要多。我的假設是否正確？

Yes. Gary, that is, in fact -- everything you said actually is, you're correct and in line with what we're thinking. First off, we do think this is a major breakthrough and a real opportunity for us to expand the MirrorEye platform. And there are just a very, very large number of trailers out there in the market. Right now, best estimation for trailers existing in the U.S. is 6 million. And also, if you look at the yearly production in just the U.S. for new trailers, it's about 300,000 a year. So this is a very substantive market. And you think about the technology and what it can bring here with looking directly behind the trailer, looking inside the trailer, there's a lot of things that the driver could benefit from seeing relative to risk mitigation, relative to product he's carrying, but also relative to safety.

是的。加里，事實上，你所說的一切都是正確的，並且符合我們的想法。首先，我們確實認為這是一個重大突破，也是我們擴展 MirrorEye 平台的真正機會。市場上有非常非常多的拖車。目前，對美國現有拖車的最佳估計是 600 萬輛。而且，如果你看看美國每年新拖車的產量，大約是每年 300,000 輛。所以這是一個非常實質性的市場。你想想這項技術以及它能帶來什麼，直接看拖車後面，看拖車內部，司機可以從看到的很多東西中受益，這些東西與風險緩解相關，與他攜帶的產品相關，但也相對到安全。

So this is a major step forward. And the technology itself -- there is so much innovation in this. I mean oftentimes, people say, well, you're just adding a camera back there, but think about what we're talking here. Adding several cameras without the need to add any additional wiring to the trailer. The innovation really is around how we've encoded the signal of the camera to be pushed through the power lines and the existing wiring harness in the trailer up to a connector that's exactly the same as the connector today to drive the signal into the cab itself. It's an extreme innovation. We were at the TMC exhibition in Orlando, Florida this week, and we saw extreme interest by trucking companies and trailer companies relative to this technology. So we are very optimistic about the expansion of MirrorEye based on this new addition to the family.

所以這是向前邁出的重要一步。還有技術本身——這裡面有很多創新。我的意思是，人們經常說，好吧，你只是在後面加了一個攝像頭，但想想我們在這裡談論的是什麼。添加多個攝像頭，無需向拖車添加任何額外的佈線。真正的創新在於我們如何對攝像機的信號進行編碼，使其通過電源線和拖車中現有的線束傳輸到與今天的連接器完全相同的連接器，以將信號驅動到駕駛室本身.這是一個極端的創新。本週我們參加了在佛羅里達州奧蘭多舉行的 TMC 展覽，我們看到卡車運輸公司和拖車公司對這項技術表現出極大的興趣。所以我們非常看好 MirrorEye 基於這個家族的新成員的擴展。

Yes, Gary, I would add to that. When you think about the speed of implementation there because it uses existing technology that's already on the tractor or the trailer. There's a benefit of speed of implementation, but also, this is more broadly, Gary, this is a testament to the significant investment we have made over the last several years in this platform. You're seeing these things start to pay off, not only in the OEM programs and the retrofit along with the -- aligned with the MirrorEye product, but this vision and safety commercial vehicle platform in total. So developing these capabilities and these technologies and applying them in the right way as we work with the fleets to better understand value proposition and where these things are applied most beneficially to the fleet to our ultimate end customer, driving the adoption and development of these advanced technologies that we agree with you, we think are changing the industry.

是的，加里，我要補充一點。當您考慮那裡的實施速度時，因為它使用了拖拉機或拖車上已有的現有技術。實施速度有一個好處，但更廣泛地說，加里，這證明了我們過去幾年在這個平台上所做的重大投資。你會看到這些事情開始得到回報，不僅在 OEM 計劃和改造中——與 MirrorEye 產品保持一致，而且整個視覺和安全商用車平台。因此，在我們與車隊合作的過程中，開發這些能力和這些技術並以正確的方式應用它們，以更好地理解價值主張，以及這些東西在哪些方面對車隊最有益地應用到我們的最終終端客戶，從而推動這些先進技術的採用和發展我們同意您的觀點的技術，我們認為正在改變這個行業。

So as I look at this, I mean you can actually port the technology and the actual product itself. I don't know how much you have to reconfigure it to be on a trailer versus a truck, but in terms of actually having this product out in the market, how long would you anticipate that event to occur from now?

所以當我看這個時，我的意思是你實際上可以移植技術和實際產品本身。我不知道你需要將它重新配置多少才能裝在拖車上而不是卡車上，但就實際將這種產品投放市場而言，你預計該事件從現在開始發生多長時間？

Yes. Okay. So I think you're asking, Gary, when would we anticipate the introduction of such a technology into the market.

是的。好的。所以我想你在問，加里，我們預計什麼時候將這種技術引入市場。

Right. Exactly. Yes.

正確的。確切地。是的。

Yes. So I think in volume, you start to see it next year, early part of next year. As I said as we were speaking, there's some opportunity perhaps for some trial fleets or something of that nature as we get to the tail end of this year, but pure commercial sales in the next year, that's most likely.

是的。所以我認為從數量上看，你會在明年，明年年初開始看到它。正如我所說的那樣，當我們到今年年底時，一些試驗機隊或類似性質的東西可能會有一些機會，但最有可能在明年進行純商業銷售。

Okay. So really, this partnership with Grote Industries is kind of more or less like -- I mean, Grote is what? Is that a trailer company? Or is that -- what is that?

好的。所以真的，與 Grote Industries 的這種合作關係或多或少有點像——我的意思是，Grote 是什麼？那是一家拖車公司嗎？或者是——那是什麼？

There are harness -- I don't want to misrepresent them, but they're essentially a harness and lighting company. So they don't really produce the trailers, they provide the electric structure in the trailer.

有線束——我不想歪曲他們的意思，但他們本質上是一家線束和照明公司。所以他們並不真正生產拖車，他們提供拖車中的電氣結構。

(Operator Instructions)

（操作員說明）

I'm seeing no further questions in the queue. I would now like to turn the conference back to Jim Zizelman for closing remarks.

我沒有看到隊列中有其他問題。我現在想把會議轉回 Jim Zizelman 的閉幕詞。

Well, thank you, everyone, for joining us for the call. I know your time is very important, and we truly appreciate your willingness to engage with us today. We couldn't be more excited, I think, as you can tell, about our industry-changing product platforms and the growth it brings to our company. Our focus is now on rigorous and disciplined execution, which will bring the performance we outlined today. So thanks again, everyone.

好吧，謝謝大家加入我們的電話會議。我知道您的時間非常重要，我們非常感謝您今天願意與我們互動。我認為，正如您所知，我們對我們改變行業的產品平台及其為我們公司帶來的增長感到無比興奮。我們現在的重點是嚴格和紀律嚴明的執行，這將帶來我們今天概述的績效。所以再次感謝大家。

This concludes today's conference call. Thank you all for participating. You may now disconnect, and have a pleasant day.

今天的電話會議到此結束。謝謝大家的參與。您現在可以斷開連接，並度過愉快的一天。