Standex International Corp (SXI) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Standex International Fiscal Second Quarter 2024 financial results conference call. (Operator Instructions) This call is being recorded on Friday, February 2, 2024, I would now like to turn the conference over to Mr. Chris Howe, Director of Investor Relations. Please go ahead, sir.

早安，女士們、先生們，歡迎參加斯丹迪斯國際 2024 年第二季財務業績電話會議。（操作員說明）本次電話會議於 2024 年 2 月 2 日星期五進行錄音，我現在想將會議轉交給投資者關係總監 Chris Howe 先生。請繼續，先生。

Thank you, operator, and good morning. Please note that the presentation accompanying management's remarks can be found on the Investor Relations portion of the company's website at www.standex.com. Please refer to Standex's safe harbor statement on slide 2 matters that Standex management will discuss on today's conference call include predictions, estimates, expectations, and other forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially. You should refer to Standex's most recent annual report on Form 10 K as well as other SEC filings and public announcements for a detailed list of risk factors.

謝謝您，接線員，早安。請注意，管理層講話的簡報可在公司網站 www.standex.com 的投資者關係部分找到。請參閱斯丹迪斯關於幻燈片 2 的安全港聲明，斯丹迪斯管理層將在今天的電話會議上討論的事項包括預測、估計、預期和其他前瞻性聲明。這些陳述存在風險和不確定性，可能導致實際結果有重大差異。您應該參考 Standex 的最新 10 K 表格年度報告以及其他 SEC 備案文件和公告，以了解風險因素的詳細清單。

In addition, I'd like to remind you that today's discussion will include references to the non-GAAP measures of EBIT, which is earnings before interest and taxes. Adjusted EBIT, which is EBIT, excluding restructuring, purchase accounting, acquisition related expenses and one-time items. EBITDA, which is earnings before interest, taxes, depreciation and amortization, adjusted EBITDA, which is EBITDA excluding restructuring, purchase accounting, acquisition-related expenses and onetime items, EBITDA margin and adjusted EBITDA margin.

此外，我想提醒您，今天的討論將包括提及非公認會計原則的息稅前利潤（息稅前利潤）。調整後息稅前利潤，即息稅前利潤，不包括重組、採購會計、收購相關費用及一次性項目。EBITDA，即息稅折舊及攤銷前利潤，調整後 EBITDA，即不包括重組、採購會計、收購相關費用和一次性項目的 EBITDA、EBITDA 利潤率和調整後 EBITDA 利潤率。

We will also refer to other non-GAAP measures, including adjusted net income, adjusted operating income, adjusted net income from continuing operations, adjusted earnings per share adjusted operating margin, free operating cash flow and pro forma net debt EBITDA.

我們也將參考其他非公認會計準則指標，包括調整後淨利、調整後營業收入、調整後持續營業淨利、調整後每股收益、調整後營業利潤率、自由經營現金流和預計淨債務EBITDA 。

These non-GAAP financial measures are intended to serve as a complement to results provided in accordance with accounting principles. Generally Accepted in the United States. Standex believes that such information provides an additional measurement and consistent historical comparison of the company's financial performance.

這些非公認會計原則財務指標旨在作為根據會計原則提供的結果的補充。在美國普遍接受。斯丹迪斯認為，此類資訊提供了公司財務表現的額外衡量標準和一致的歷史比較。

On the call today as Standex's Chairman, President and Chief Executive Officer, David Dunbar; and Chief Financial Officer and Treasurer, Ademir Sarcevic.

David Dunbar 今天以 Standex 董事長、總裁兼執行長身份接受電話會議；財務長兼財務主管 Ademir Sarcevic。

Thank you, Chris. Good morning, and welcome to our fiscal second quarter 2024 conference call. The quality of our businesses was highlighted in our results as we continued our trend of record adjusted operating margin performance. I would like to thank our employees, our executives and the Board of Directors for their efforts and continued dedication and support that drove our results.

謝謝你，克里斯。早安，歡迎參加我們的 2024 年第二財季電話會議。隨著我們繼續保持創紀錄的調整後營業利潤率表現，我們的業務品質在我們的業績中得到了凸顯。我要感謝我們的員工、高階主管和董事會的努力以及持續的奉獻和支持，推動了我們的成果。

Now if everyone could turn to slide 3, key messages in the second quarter. Sales in the fast growth end markets grew 14% year-on-year to $21 million, and we remain on track to achieve our long-term target of $200 million in sales into fast growth end markets by fiscal year 2028.

現在大家可以看一下投影片 3，第二季的關鍵資訊。快速成長的終端市場的銷售額年增 14%，達到 2,100 萬美元，我們仍有望實現 2028 財年快速成長的終端市場銷售額達到 2 億美元的長期目標。

As we projected in last quarter's outlook, we experienced the effect of unfavorable project timing in the Engineering Technologies segment and transitory market softness in other markets, which led to an organic decline of 7.4%. This was partially offset by contributions from our recent Medtronic's acquisition and favorable foreign currency in general we expect market conditions to start moving in Fiscal Fourth Quarter 2024.

正如我們在上個季度展望中所預測的那樣，我們經歷了工程技術領域不利的專案時機和其他市場短暫的市場疲軟的影響，導致有機下降 7.4%。這部分被我們最近收購美敦力 (Medtronic) 的貢獻和有利的外匯所抵消，我們預計市場狀況將在 2024 年第四季開始變化。

In addition, we continue to work on an active pipeline of inorganic opportunities. As we announced last quarter we signed a definitive agreement to acquire Xinyu switch company. We anticipate this transaction to close during our fiscal third quarter. We also continued to generate strong profitability from the execution of our price and productivity initiatives.

此外，我們也持續致力於積極開發無機機會。正如我們上季度宣布的那樣，我們簽署了收購新宇開關公司的最終協議。我們預計此項交易將在第三財季完成。我們也繼續透過執行價格和生產力計劃來創造強勁的獲利能力。

In the fiscal second quarter, we achieved record adjusted gross margin and an 11th consecutive quarter of record adjusted operating margin. This is the first time in the Company history. The gross margin was above 40%, and it demonstrates our continued ability to drive operating improvements while adapting to changing macro conditions.

在第二財季，我們實現了創紀錄的調整後毛利率，並連續 11 個季度創紀錄的調整後營業利潤率。這在公司歷史上尚屬首次。毛利率超過40%，這表明我們有能力在適應不斷變化的宏觀環境的同時，持續推動營運改善。

Consolidated adjusted operating margin increased to 90 basis points year on year to a record 16.1%. Three of our five segments reported adjusted operating margin greater than 20% again and in all five segments reported adjusted operating margin greater than 17%. We achieved free cash flow of $19.5 million in the quarter, leading to record free cash flow year to date. Our consistent and improved cash flow generation and ROIC of over 12%.

綜合調整後營業利益率年增 90 個基點，達到創紀錄的 16.1%。我們五個部門中的三個部門報告調整後營業利潤率再次超過 20%，所有五個部門報告調整後營業利潤率超過 17%。本季我們實現了 1,950 萬美元的自由現金流，創下了今年迄今創紀錄的自由現金流。我們的現金流產生和投資報酬率持續改善，超過 12%。

Further highlights the quality of our businesses. Looking back to February 2021, we communicated a set of long-term financial targets over three to five years. These targets included mid-single digit organic growth, EBITDA margin above 20% and return on invested capital above 12%.

進一步凸顯了我們的業務品質。回顧 2021 年 2 月，我們傳達了一系列三到五年的長期財務目標。這些目標包括中個位數有機成長、EBITDA 利潤率超過 20% 以及投資資本回報率超過 12%。

We are proud to have reached these targets within three years on a sequential basis, in fiscal Q3 2024, we expect slightly higher revenue due to the contribution from our pending acquisition of Sanyo and a slight recovery in the electronics and Specialty segments. We expect slightly lower adjusted operating margin sequentially due to the impact of a one-time charge related to me reaching retirement eligibility under the stock compensation plan.

我們很自豪能夠在三年內連續實現這些目標，在 2024 財年第三季度，由於我們即將收購三洋的貢獻以及電子和專業領域的小幅復甦，我們預計收入將略有增加。由於與我根據股票補償計劃達到退休資格相關的一次性費用的影響，我們預計調整後的營業利潤率將略有下降。

Excluding this onetime charge, adjusted operating margin would be similar on a sequential basis. Although I am now retirement eligible understand ex the stock compensation plan, I don't plan to go anywhere. I remain committed to my role as CEO, and I'm excited by our long-term vision for Standex in fiscal Q4 2024. On a sequential basis, we expect meaningfully higher sales and continued improvement in adjusted operating margin. This outlook assumes slight market recovery in the end markets served by electronics and Specialty segments contribution from the pending Sun acquisition and more favorable project timing.

排除這筆一次性費用，調整後的營業利潤率將與連續的基礎相似。雖然我現在有退休資格（了解股票補償計劃），但我不打算去任何地方。我仍然致力於履行執行長的職責，並且對我們在 2024 年第四財季對斯丹迪斯的長期願景感到興奮。環比來看，我們預期銷售額將大幅成長，調整後的營業利潤率將持續改善。這項展望假設電子產品和專業細分市場所服務的終端市場因即將進行的 Sun 收購而略有復甦，並且專案時機更為有利。

In the Engineering Technologies segment, we are reaffirming our long-term financial outlook by fiscal year 2028. These targets include high single digit organic growth to greater than $1 billion in sales, adjusted operating margin greater than 19%, return on invested capital greater than 15%, and free cash flow conversion at approximately 100% of GAAP net income.

在工程技術領域，我們重申了 2028 財年的長期財務前景。這些目標包括銷售額超過 10 億美元的高個位數有機成長、調整後營業利潤率超過 19%、投資資本回報率超過 15%，以及自由現金流轉換約為 GAAP 淨利潤的 100%。

Let's turn to slide 4. In January, I celebrated my 10th anniversary of Standex. I'd like to take a little walk down memory lane here because it's important to understand where we are going and how we will get there.

讓我們轉到投影片 4。一月份，我慶祝了斯丹迪斯成立 10 週年。我想在這裡回憶一下，因為了解我們要去哪裡以及如何到達那裡非常重要。

First, let's look at our results. At the end of January 2014, the Company's market cap was just over $660 million. Now 10 years later, it has grown to $1.8 billion. We have significantly outperformed the Russell 2000 and kept pace with the S&P 500 over that time, a great accomplishment for a small-cap company. The financial results that created that valuation are below on roughly the same sales. We increased gross margins from 33.4% to 40.3% and nearly double the EPS.

首先，讓我們看看我們的結果。截至2014年1月，公司市值略高於6.6億美元。10 年後的今天，它已增長至 18 億美元。在此期間，我們的表現明顯優於羅素 2000 指數，並與標準普爾 500 指數保持同步，這對於小型公司來說是一項偉大的成就。創造該估值的財務表現低於大致相同銷售額的情況。我們將毛利率從 33.4% 提高到 40.3%，每股盈餘幾乎翻倍。

The real story of how we delivered these results.

我們如何實現這些結果的真實故事。

Please turn to Page 5. Our vision was to evolve from our holding company roots to become a high-performing operating company, building it around strong businesses with defensible competitive advantages in serving growing end markets. We developed the management process that we call the Standex value creation system.

請翻到第5頁。我們的願景是從我們的控股公司發展成為一家高績效的營運公司，圍繞著強大的業務進行建設，在服務不斷增長的終端市場方面具有可防禦的競爭優勢。我們發展了稱為「斯丹迪斯價值創造系統」的管理流程。

We evaluated our portfolio to retain businesses that met this criteria and that had an operating income potential of 15%. Perhaps most importantly, we wanted to ensure we attract and retain the great talent that thrives in a collaborative problem-solving culture. We got to work and we executed. We significantly retooled and refocused the portfolio we divested over one-half the sales of the company, reducing the number of businesses from 15 to 6.

我們評估了我們的投資組合，以保留符合此標準且營業收入潛力為 15% 的企業。也許最重要的是，我們希望確保吸引並留住在協作解決問題的文化中茁壯成長的優秀人才。我們開始工作並執行。我們對投資組合進行了重大重組和調整，我們剝離了公司一半以上的銷售額，將企業數量從 15 家減少到 6 家。

We grew our better businesses with a combination of organic investments and acquisitions. We focused on operational improvements and implemented strong pricing and productivity processes and controls across all businesses. Gross margin grew to 40.3%. At the same time, we increased R&D spending from 0.6% of sales to 2.9% of sales. We serve a better mix of end markets with 36% of our sales.

我們透過有機投資和收購的結合來發展更好的業務。我們專注於營運改進，並在所有業務中實施了強大的定價和生產力流程和控制。毛利率成長至40.3%。同時，我們將研發支出從佔銷售額的0.6%提高到2.9%。我們的銷售額佔總銷售額的 36%，為更好的終端市場組合提供服務。

Now going into markets growing over 5%. The lowest operating margin business in the corporation used to be in the low single digits. Now our lowest margin business delivers over 15%. Operating income through the metric I am perhaps most pleased with is how we are creating career paths for our people. For 2014, we sold about 35% of our management positions with internal hires going outside for the remainder now in 2024, those numbers are reversed with the majority of our key positions going to current Standex employees through these 10 years, we have developed the capability to perform at a higher level and begin to deliver on our commitments despite the twists and turns of the markets around us by working on those things we can control, we delivered the financial results I showed earlier.

現在進入成長超過 5% 的市場。公司營業利益率最低的業務曾經是低個位數。現在，我們利潤率最低的業務已超過 15%。透過衡量營業收入的指標，我最滿意的可能是我們如何為員工創造職涯道路。2014 年，我們出售了約35% 的管理職位，剩下的內部員工將在2024 年外部聘用，這些數字正好相反，在這10 年裡，我們的大部分關鍵職位都交給了現有的斯丹迪斯員工，我們已經發展了這種能力儘管我們周圍的市場曲折，但透過致力於我們可以控制的事情，我們實現了更高水平的表現並開始履行我們的承諾，我們交付了我之前展示的財務業績。

Now please turn to page 6. Three years ago, we issued longer-term financial expectations stating over the next three to five years, we would achieve the targets shown in this slide have copies here from the 2021 presentation. We have essentially met them in three years. We delivered EBITDA of 19.6% versus the target of 20% ROIC of 12.3% versus the target of 12%. Our free cash flow conversion has been operating near our target of 100% of GAAP net income. Our businesses and our teams have shown they can perform at a higher level.

現在請翻到第6頁。三年前，我們發布了長期財務預期，指出在未來三到五年內，我們將實現本幻燈片中所示的目標（此處為 2021 年簡報的副本）。我們基本上在三年內見過他們。我們的 EBITDA 為 19.6%，而目標為 20%；ROIC 為 12.3%，而目標為 12%。我們的自由現金流轉換一直接近 100% GAAP 淨利的目標。我們的企業和團隊已經證明他們可以達到更高水準。

Turn to page 7. Last year, we issued updated targets to achieve by 2028. We will do this by executing the same strategy and building on the capabilities we have developed in the past 10 years, a couple of differences are that we do not need significant portfolio reshaping. In addition, much more of our energy is devoted to operating our high-quality businesses and especially getting better and better at bringing new products to market and penetrating fast growing markets. We will continue to devote our energies to those things we can control and position ourselves to exceed those targets as well I will now turn the call over to Ademir to discuss our financial performance in greater detail.

翻到第7頁。去年，我們發佈了 2028 年實現的更新目標。我們將透過執行相同的策略並以我們在過去 10 年中開發的能力為基礎來實現這一目標，但有幾個區別是我們不需要重大的投資組合重塑。此外，我們將更多的精力投入到經營高品質業務上，特別是在將新產品推向市場和滲透快速成長的市場方面做得越來越好。我們將繼續將精力投入到我們可以控制的事情上，並讓自己超越這些目標，我現在將把電話轉給阿德米爾，更詳細地討論我們的財務表現。

Thank you, David, and good morning, everyone. Let's turn to Slide 8. Second quarter 2020.

謝謝大衛，大家早安。讓我們轉向幻燈片 8。2020 年第二季。

For a summary, on a consolidated basis, total revenue decreased approximately 5% year on year to $178.4 million, in line with our sequential outlook we discussed last quarter. This reflected organic revenue decline of 7.4%, partially offset by 1.9% net impact from the recent Electronics acquisition and prior Protocom divestiture and 0.6% benefit from foreign exchange.

總而言之，在合併基礎上，總營收年減約 5% 至 1.784 億美元，與我們上季討論的連續展望一致。這反映了 7.4% 的有機收入下降，部分被近期 Electronics 收購和先前 Protocom 剝離帶來的 1.9% 淨影響以及外匯帶來的 0.6% 收益所抵消。

Second Quarter 2024 for adjusted operating margin increased 90 basis points year on year to 16.1%. Our 11th consecutive quarter with the highest adjusted operating margin in Company history. Adjusted operating income grew 0.3% on a 5% consolidated revenue decrease year on year, reflecting continued focus on driving margin improvement through OpEx and pricing initiatives.

2024 年第二季調整後營業利潤率年增 90 個基點至 16.1%。我們連續 11 個季度實現公司歷史上最高的調整後營業利潤率。調整後營業收入成長 0.3%，綜合收入年減 5%，反映出公司持續致力於透過營運支出和定價措施推動利潤率改善。

Adjusted earnings per share were $1.78 in the second quarter of fiscal 2024 compared to $1.74 a year ago, a 2.3% growth year on year. Net cash provided by operating activities was $23.8 million in the second quarter of 2024 compared to $29.8 million a year ago.

2024財年第二季調整後每股盈餘為1.78美元，上年同期為1.74美元，較去年同期成長2.3%。2024 年第二季營運活動提供的淨現金為 2,380 萬美元，去年同期為 2,980 萬美元。

Capital expenditures were $4.3 million compared to $5.8 million a year ago. As a result, free cash flow was $19.5 million in Fiscal Second Quarter 2024 compared to $24 million a year ago. On a year to date basis, free cash flow of $31.6 million represents a record first half cash generation in the history of the Company.

資本支出為 430 萬美元，而一年前為 580 萬美元。因此，2024 年第二季的自由現金流為 1,950 萬美元，而一年前為 2,400 萬美元。年初至今，自由現金流為 3,160 萬美元，創下了公司歷史上上半年現金生成的紀錄。

Now please turn to slide 9, and I would again begin to discuss our segment performance and outlook. Beginning with electronic segment. Revenue of $79.4 million increased 9.5% year on year, a 14.7% benefit from the recent Medtronic acquisition and 0.5% benefit from foreign currency, but partially offset by an organic decline of 5.7%.

現在請轉到投影片 9，我將再次開始討論我們的部門表現和前景。從電子領域開始。營收為 7,940 萬美元，年成長 9.5%，其中 14.7% 受益於最近的美敦力收購，0.5% 受益於外匯，但部分被 5.7% 的有機下降所抵消。

Adjusted operating margin of 20.3% in Fiscal Second Quarter 2024 decreased 310 basis points year on year. And the contribution from the Medtronic acquisition and pricing and productivity initiatives were more than offset by lower organic sales and product mix. Our new business opportunity funnel increased 30% year on year and grew 13% organically and is currently in approximately $76 million.

2024 財年第二季調整後營業利益率為 20.3%，較去年同期下降 310 個基點。美敦力收購、定價和生產力措施的貢獻被較低的有機銷售和產品組合所抵消。我們的新商機通路年增 30%，有機成長 13%，目前約 7,600 萬美元。

We remain confident in our ability to increase share and accelerate our presence in fast-growing end markets such as industrial automation, smart grid, renewable energy and EV related markets sequentially in fiscal third quarter 2020 for the excess like we expect slightly to moderately higher revenue and slightly higher operating margin from stronger volume and the contribution from the pending acquisition of Sun. Based on the observed order trends, we anticipate general market conditions to improve in fiscal Q4 2024.

我們仍然相信，我們有能力在2020 財年第三季度繼續增加份額並加速在工業自動化、智慧電網、再生能源和電動車相關市場等快速成長的終端市場的佔有率，以實現收入小幅至適度成長的預期由於銷量增加以及即將收購 Sun 的貢獻，營業利潤率略有提高。根據觀察到的訂單趨勢，我們預計 2024 財年第四季整體市場狀況將有所改善。

Please turn to slide 10 for a discussion of the Engraving and scientific segments in greater revenue increased 8.4% to $40.8 million, driven by organic growth of 6.7% and a 1.7% benefit from foreign currency operating margin of 21.8% in Fiscal Second Quarter 2024 increased 490 basis points year-on-year due to higher volume and realization of productivity actions in our next fiscal quarter.

請轉至幻燈片 10，討論雕刻和科學領域的收入增長 8.4%，達到 4,080 萬美元，這得益於 6.7% 的有機增長以及 2024 財年第二季度 21.8% 的外幣營業利潤率 1.7% 的增長由於我們下一財季的產量增加和生產力行動的實現，年增490 個基點。

On a sequential basis, you'd expect me not meaningfully lower revenue and operating margin due to the seasonal impact of the Chinese New Year on project timing and fewer new platform rollouts.

從環比來看，由於農曆新年對專案時間的季節性影響以及新平台推出的減少，您預計我不會大幅降低收入和營業利潤率。

In North America, Stantec revenue decreased 15.6% to $16.3 million as lower demand for COVID vaccine storage units and retail pharmacies was slightly offset by higher new product sales. Operating margin of 26.1% increased 450 basis points year on year due to lower freight cost and productivity initiatives offsetting lower volume. Sequentially, we expect slightly higher revenue and similar to slightly higher operating margins.

在北美，Stantec 營收下降 15.6% 至 1,630 萬美元，原因是新產品銷售增加略微抵消了新冠疫苗儲存單位和零售藥局需求的下降。由於貨運成本下降和生產力措施抵消了銷量下降，營運利潤率為 26.1%，年增 450 個基點。接下來，我們預計收入會略有增加，營業利潤率也會略有增加。

Now turn to slide 11 for a discussion of the engineering technologies and Specialty Solutions segments.

現在轉到投影片 11，討論工程技術和專業解決方案部分。

Engineered Technologies revenue of $19.9 million decreased 17.8% year on year due to timing of projects. This reflected an organic decline of 18.1% and a 0.3% benefit from foreign currency. Operating margin of 17.1% increased 160 basis points year on year as pricing and productivity initiatives were partially offset by lower volume and higher research and development expenses.

由於專案時間安排，工程技術收入為 1,990 萬美元，年減 17.8%。這反映了 18.1% 的有機下降和 0.3% 的外匯收益。營業利潤率為 17.1%，年成長 160 個基點，原因是銷售下降和研發費用增加部分抵消了定價和生產力措施的影響。

Sequentially, we expect similar revenue reflecting improvement across most end markets, offset by lower defense end market sales caused by delays in government funding and similar to slightly lower operating margin.

接下來，我們預計大多數終端市場的收入將出現類似的改善，但被政府資金延遲導致的國防終端市場銷售額下降以及營業利潤率略有下降所抵消。

We anticipate significant sequential growth in the fiscal fourth quarter, reflecting more favorable project time Specialty Solutions segment revenue of $22 million decreased 35.5% year on year, primarily due to the Broadcom divestiture and other and an organic decline in the Hydraulics business from the industry-wide chassis shortage. Operating margin of 18.1% increased 130 basis points year on year, driven by price and productivity realization, partially offset by lower volume. Sequentially, we expect slightly to moderately higher revenue and operating margin due to improved demand in the Hydraulics business.

我們預計第四財季將出現顯著的環比增長，反映出更有利的專案時間，專業解決方案部門的收入為2200 萬美元，同比下降35.5%，這主要是由於博通剝離以及其他行業液壓業務的有機下降。寬底盤短缺。受價格和生產力實現的推動，營業利潤率為 18.1%，年增 130 個基點，但部分被銷量下降所抵銷。因此，由於液壓業務需求的改善，我們預計收入和營業利潤率將略有上升。

Next, please turn to slide 12 for a summary of standard liquidity statistics and the capitalization structure, which remains strong. Standex ended fiscal second quarter 2024 with $347 million of available liquidity at the end of the second quarter, Standex had net debt of $6.2 million compared to $21.7 million at the end of fiscal first quarter of 2024 Sanofi's long-term debt at the end of fiscal second quarter 2024 was $148.7 million. Cash and cash equivalents totaled $142.4 million. With regards to capital allocation, we repurchased approximately 33,500 shares for $4.5 million in the second quarter. We also declared our 238 quarterly consecutive cash dividend of $0.30 per share and approximately 7.1% increase year on year. In fiscal 2024, we expect capital expenditures to be between $25 million and $30 million compared to approximately $24 million in fiscal 2023.

接下來，請參閱投影片 12，以了解標準流動性統計數據和資本結構的摘要，該結構仍然強勁。截至 2024 財年第二季末，斯丹迪斯的可用流動資金為 3.47 億美元，斯丹迪斯的淨債務為 620 萬美元，而 2024 年第一財季末的淨債務為 2,170 萬美元。 2024 年第二季為1.487 億美元。現金及現金等價物總計 1.424 億美元。在資本配置方面，我們在第二季以 450 萬美元回購了約 33,500 股股票。我們也宣布連續 238 個季度現金股利每股 0.30 美元，較去年同期成長約 7.1%。2024 財年，我們預計資本支出將在 2,500 萬至 3,000 萬美元之間，而 2023 財年約為 2,400 萬美元。

I will now turn the call over to David to discuss key takeaways from our second quarter results.

我現在將把電話轉給大衛，討論我們第二季業績的關鍵要點。

Thank you, Ademir Please turn to Slide 13. I'm very proud of our team for their strong operational execution and continued focus on growing markets. And new applications that led to our quarterly results. In our streak of 11 consecutive quarters of record margin. We have proven that we can expand margin and grow earnings by adapting to changing macro conditions, I'm excited as sales from fast-growth markets become even more significant contributors to our organic growth.

謝謝，Ademir，請翻到幻燈片 13。我為我們的團隊強大的營運執行力和對不斷增長的市場的持續關注感到非常自豪。以及導致我們季度業績的新應用程式。我們連續 11 個季度創紀錄的利潤率。我們已經證明，我們可以透過適應不斷變化的宏觀條件來擴大利潤率和增加收入，我很高興來自快速成長市場的銷售成為我們有機成長的更重要貢獻者。

Sales growth in these markets, combined with expected new product releases, strong customer relationships and operational rigor give us confidence in the Company's long-term organic growth and profit potential. We continue to maintain a strong balance sheet based on our prudent and consistent capital allocation, which allows us to continue to pursue additional inorganic investments complementary to our strategy. In fiscal 2024, we expect continued margin expansion tracking to our long-term outlook. We anticipate sales in the fast-growth markets to continue progressing towards $200 million plus by fiscal 2028.

這些市場的銷售成長，加上預期的新產品發布、強大的客戶關係和嚴格的運營，使我們對公司的長期有機成長和利潤潛力充滿信心。我們基於審慎和一致的資本配置，繼續保持強勁的資產負債表，這使我們能夠繼續尋求與我們的策略互補的額外無機投資。在 2024 財年，我們預期利潤率將持續擴張，符合我們的長期前景。我們預計到 2028 財年，快速成長市場的銷售額將繼續朝著 2 億美元以上的方向發展。

We reaffirm our long-term financial outlook for fiscal 2028. These targets include high single digit organic growth to greater than $1 billion in sales, adjusted operating margin greater than 19%, return on invested capital of greater than 15% and free cash flow conversion at approximately 100% of GAAP net income.

我們重申 2028 財年的長期財務前景。這些目標包括銷售額超過 10 億美元的高個位數有機成長、調整後營業利潤率超過 19%、投資資本回報率超過 15%，以及自由現金流轉換約為 GAAP 淨利潤的 100%。

We will now open the line for questions.

我們現在將開通提問熱線。

(Operator Instructions) Chris Moore, CJS Securities.

（操作員指令）Chris Moore，CJS 證券。

Good morning, guys. Thanks for taking a few questions, Tony, good morning. So maybe just was sort of electronics, it looks like softer and the electronics conditions in Europe and China are continuing. So maybe two questions there. On what indicators are you looking at, if any to help gauge when demand might strengthen a bit there?

早上好傢伙。感謝您提出一些問題，托尼，早安。所以也許只是電子產品，看起來比較疲軟，歐洲和中國的電子產品狀況仍在持續。也許有兩個問題。您正在關注哪些指標（如果有的話）來幫助判斷需求何時可能會增強？

Yes, in the last few quarters, first, we pointed out we saw softness in China and in Europe. We anticipated those will begin to reverse and we also call it the appliance market in particular.

是的，在過去幾個季度，首先，我們指出我們看到中國和歐洲的疲軟。我們預計這些情況將開始逆轉，我們也稱之為家電市場。

So when we look at trends, a good leading indicator for us is the orders on bare switches that go through distribution channels. These are often sold across many different applications into many, many end markets, and they're also used for samples as people are developing new products. So that's typically the first thing to tick down in the first to come up this quarter, we're starting to see those orders tick up. So we're so based on historic precedent, deals were canceled. We are seeing that turning pushing appliance orders come I come back on in the quarter.

因此，當我們觀察趨勢時，對我們來說一個很好的領先指標是透過分銷管道的裸交換機訂單。這些產品通常在許多不同的應用中銷售到許多許多終端市場，當人們開發新產品時，它們也被用作樣品。因此，這通常是本季第一個出現的第一件事，我們開始看到這些訂單增加。因此，我們根據歷史先例，取消了交易。我們看到，家電訂單的轉向推動了我在本季的回歸。

The general level of sales in China and Europe are still lower than we expected when we talked about this last year, but with the with the order trends reversing we expected late this quarter and into next for that those to come up.

中國和歐洲的整體銷售水準仍然低於我們去年談論這個問題時的預期，但隨著訂單趨勢的逆轉，我們預計本季末和下一季將會出現訂單趨勢。

Got it. That's helpful. I appreciate that. My understanding is that China represents roughly 10% electronic revenue. And I'm just trying to understand what's that, what's the new normal? What are the puts and takes for China to stay at that level three to five years from now?

知道了。這很有幫助。我很感激。我的理解是，中國約佔電子收入的 10%。我只是想了解那是什麼，新常態是什麼？中國要在三到五年內維持這一水準需要採取哪些措施？

Well, that's a good question about two thirds of our sales in China are in China for China. So the ship to address it in China.

嗯，這是一個很好的問題，我們在中國的銷售額有三分之二是在中國銷售的。所以這艘船要在中國解決。

There's some multinationals that are there. There are a lot of Chinese manufacturers that they purchase from us. The other two thirds is the other third is exports. So what will change there? There are more of our customers that are talking about reshoring to North America and frankly, for us just kind of left pocket right pocket thing will follow that business wherever it is on for the remainder of the business, it has more to do with your guess is as good as mine about the prospects for the Chinese economy.

那裡有一些跨國公司。他們有很多中國製造商從我們這裡採購。另外三分之二是另外三分之一是出口。那麼那裡會發生什麼變化呢？我們有更多的客戶正在談論回流到北美，坦率地說，對我們來說，無論業務的其餘部分在哪裡，左口袋右口袋的東西都會跟隨該業務，這與您的猜測有更多關係對於中國經濟的前景，我和我一樣看好。

Got it. I appreciate that. Maybe just on engineering. So obviously being impacted by delays in government funding, you're expecting a big increase Q4 just to maybe a little bit more about how much visibility you have on that?

知道了。我很感激。也許只是在工程方面。顯然，受到政府資金延誤的影響，您預計第四季度將大幅成長，只是為了更了解您對此的了解程度？

Yeah. So on we said delay in funding is not so much volume funding is sort of a reallocation of where their spending is for the we have we have a position in the Navy nuclear on vessels, and some of that spending has been pushed out in order to fund support for some of the conflicts around the world now we actually have quite good visibility in the Engineering Technologies business.

是的。因此，我們說，資金的延遲與其說是數量上的資金，不如說是對其支出的重新分配，因為我們在海軍核艦艇上擁有一席之地，其中一些支出已被推遲，以便為世界各地的一些衝突提供資金支持現在，我們實際上在工程技術業務中擁有相當好的知名度。

And I think in the in the script, we called out, we do expect a very strong Q4 as customer projects line up for delivery. What could be if we if we execute and the customers don't change, it will be a record Q4 differentiator and technology, so quite confident there.

我認為在腳本中，我們呼籲，隨著客戶專案排隊等待交付，我們確實預計第四季度將非常強勁。如果我們執行並且客戶不改變，這將是創紀錄的第四季度差異化因素和技術，所以對此非常有信心。

Perfect. Maybe just last one for me. Looks on the M&A side. Can you closing shortly, just kind of how deep is the funnel are there any $50 million plus revenue targets out there at this stage?

完美的。也許對我來說只是最後一張。著眼於併購方面。您能否盡快結束，請問漏斗有多深，現階段是否有 5,000 萬美元以上的收入目標？

Yeah, last year we said there were there was other family-owned businesses, which we continue to build relationships with, but there were very few $50 million, [$7,500] million businesses that seem to be actionable. That's changing a little bit.

是的，去年我們說過還有其他家族企業，我們繼續與它們建立關係，但似乎可以採取行動的價值 5,000 萬美元、[7,500] 百萬美元的企業很少。這正在發生一些變化。

There are some attractive larger businesses. We have been positioning ourselves with that with the owners. And it looks like some of them could be actionable in the next quarter or two. So I think the funnel is looking healthier than it did last year.

有一些有吸引力的大型企業。我們一直與業主一起定位自己。看起來其中一些可能會在接下來的一兩個季度內付諸實施。所以我認為漏斗看起來比去年更健康。

That's really helpful, David, I will leave it there. Thanks.

這真的很有幫助，大衛，我會把它留在那裡。謝謝。

Thank you, Chris.

謝謝你，克里斯。

(Operator Instructions) Michael Legg, Benchmark.

（操作員指令）Michael Legg，基準。

When you look at your 19% operating margin goal by 2028, how much of that is coming from internal versus external expectations from new product development costs, cost initiatives plus acquired businesses?

當您考慮到 2028 年 19% 的營業利潤率目標時，其中有多少來自新產品開發成本、成本計劃以及收購業務的內部預期和外部預期？

Well, it's actually it's pretty easy to get. There are microphones. If you take a look at your whatever your estimate is for our sales this year over the next four years, we're very conference fast-growth markets will add another $100 million to sales and although sales are at margins above our average, so that that mixes us up and then the rest of the year, you get the rest of that growth of just 3.5% growth on the base business. And if you just take some leverage on that. We get to the 19%. So if you give us a little credit for succeeding with new products, which are typically our higher margins and there's upside both to a margin mix and to a top line.

嗯，實際上它很容易獲得。有麥克風。如果您看一下您對今年未來四年銷售額的估計，我們非常確信快速成長的市場將再增加 1 億美元的銷售額，儘管銷售額的利潤率高於我們的平均水平，因此這讓我們混合在一起，然後在今年剩下的時間裡，你會得到基礎業務成長3.5% 的剩餘成長。如果你能利用這一點的話。我們達到了 19%。因此，如果你對我們新產品的成功給予一點信任，這通常是我們更高的利潤率，而且利潤率組合和營收都有上升空間。

Yeah. And then Mike, it's Ademir. If I can just add in a we've developed a pretty good operating muscles over the last three or four years, both from a pricing and OpEx standpoint.

是的。然後麥克，是阿德米爾。如果我可以補充一點的話，無論是從定價或營運支出的角度來看，我們在過去三、四年都發展了相當好的營運實力。

So on top of what David just said, from a volume standpoint, we'll continue driving productivity and we anticipate continued to drive our gross margin up and use some of those dollars to fund the R&D funnel and continue that to continue to grow.

因此，除了大衛剛才所說的之外，從銷量的角度來看，我們將繼續提高生產力，我們預計將繼續提高毛利率，並使用其中的一些美元為研發管道提供資金，並繼續增長。

Okay. And then you were seeing a lot of news on just EV sales being slowed. Talk a little bit on the EV sector where what you're seeing from here customers?

好的。然後你會看到很多有關電動車銷售放緩的消息。談談電動車領域，您從這裡的客戶那裡看到了什麼？

Yes, our EV present. And I think we've I think we've talked about this before. Our products.

是的，我們的電動車禮物。我想我們之前已經討論過這個問題。我們的產品。

Ours are especially adapted to the needs of EVs that operate at higher voltages, say, above 800 volt. So last year, I think at about 11 million vehicles are electric vehicles were sold last year, 3 million of those operated 800 volts or more. We run 60% of those vehicles. We're on about 30% of the remainder of those vehicles.

我們的產品特別適合在更高電壓（例如 800 伏特以上）下運行的電動車的需求。所以去年，我認為去年售出了約 1,100 萬輛電動車，其中 300 萬輛的工作電壓為 800 伏特或以上。其中 60% 的車輛由我們營運。其餘車輛中大約有 30% 是我們使用的。

And if you kind of our content is higher on those high-voltage vehicles.

如果您認為我們對那些高壓車輛的內容更高。

So about 60% of our EV sales come from these higher end vehicles and that they continue to grow nicely. In fact, we this last quarter we just had the biggest quarter we've had in EV is continues to grow very nicely. So at the top end, we continue to see healthy growth. In fact, we just won another platform up two positions on two platforms and Mercedes this last this last quarter at the lower end of the market had the growth may slow, but we still see that as a at a double digit growth on opportunity even with the 400 volt vehicles.

因此，我們約 60% 的電動車銷量來自這些高端車輛，它們繼續良好成長。事實上，上個季度我們剛剛經歷了電動車領域最大的季度，並且繼續保持良好成長。因此，在高端，我們繼續看到健康成長。事實上，我們剛剛在兩個平台上贏得了另一個平台，而梅賽德斯在上個季度的低端市場增長可能會放緩，但我們仍然認為機會以兩位數增長，即使400伏車輛。

And then just the last one on SANYO, the timing of that during the third quarter, how much you incorporating that into the guidance you gave as far as Sandoz contribution?

然後是關於三洋的最後一個，時間是在第三季度，就山德士的貢獻而言，您將其納入您給出的指導中有多少？

Let Adam handle.

讓亞當來處理吧。

Yeah, I think, Michael, if we are if we can close it in the next few weeks, you know that the guidance that we gave actually slight kind of slightly to moderately slightly assumes no Sanyo and moderately would assume we get a month or month-and-a-half of SANYO revenue within the quarter.

是的，我想，邁克爾，如果我們能在接下來的幾週內關閉它，你知道我們給出的指導實際上是輕微到中等程度的輕微假設沒有三洋，並且中等程度地假設我們得到一個月或一個月的時間本季三洋收入的一半。

So okay, great.

那麼好吧，太好了。

Thank you. Great quarter.

謝謝。很棒的季度。

Thank you.

謝謝。

(Operator Instructions) Mike Shlisky, D.A. Davidson.

（操作員說明）Mike Shlisky，D.A.戴維森。

Good morning and thanks for taking my question, I wanted to start asking to start off on a scientific another down quarter year over year due to the COVID. Well, the hangover, if you will, you've had organic growth that's been kind of negative for just about two years now almost every quarter. Is there a point where that kind of flattens out? I mean, at some point, you have now lapped the twice. I'm curious to see when we might start seeing positive organic growth in that in that business yet.

早安，感謝您提出我的問題，由於新冠疫情，我想開始要求科學上另一個季度的下滑。好吧，宿醉，如果你願意的話，你已經有近兩年的有機增長，現在幾乎每個季度都是負增長。是否有一個點會趨於平緩？我的意思是，在某個時刻，你已經跑了兩圈了。我很好奇我們什麼時候可以開始看到該業務的積極有機成長。

And we think we've lab to lab that does that that surgeon from COVID, I mean, is the sales growth for that business was and is up 40% in 21, up 6% in 22 and has been down the last two years, but then decline and was down 11% last year.

我們認為，我們的實驗室到實驗室都在做這件事，我的意思是，該業務的銷售增長在21 年增長了40％，在22 年增長了6％，並且在過去兩年中一直在下降，但隨後下降，去年下降了 11%。

This year will be down like half of that or less. And most of that is that is the reduced purchased from pharmacies. We are seeing we've seen growth in our new products. New products are a little more than 10% of sales in that business or have about approaching 10%. That gets us into new segments.

今年將下降一半或更少。其中大部分是從藥局購買的商品減少了。我們看到我們的新產品有所成長。新產品佔該業務銷售額的 10% 多一點或接近 10%。這讓我們進入了新的領域。

We're in this last year, we've talked about a return to kind of normal buying patterns from universities, laboratories, other life science institutions so on.

去年，我們討論了大學、實驗室、其他生命科學機構等恢復正常購買模式的問題。

So we'd expect growth from here.

所以我們預計這裡會出現成長。

Yeah, Mike, it's Ademir. If I can just add to that, some of these units that are sold, they usually have call it. I don't know it's a useful life, but they usually utilize for about four to seven years before they replace. So if you go back to those units that we sold in 2021 at some point over the next couple of years, there will be a replacement cycle coming in and we hope to capture that opportunity as well.

是的，麥克，我是阿德米爾。如果我可以補充一點，其中一些已售出的單位通常會被稱為。我不知道它的使用壽命，但它們通常會使用大約四到七年才會更換。因此，如果您在未來幾年的某個時候回到我們在 2021 年出售的那些設備，將會出現一個更換週期，我們也希望抓住這個機會。

Got it. Thank you for that.

知道了。謝謝你。

We wanted to turn to some specialty solutions. I did notice in the slide, you had put a AM a fire truck in there, and that's an important hydraulic piece of the market. I guess I'd be curious. So as I talk with some of the contract manufacturers and there's only a few of them out there, they are booked through May 2025 or which ones at this point, and they are trying to maximize their the throughput.

我們想尋求一些專業的解決方案。我確實在幻燈片中註意到，您在那裡放了一輛 AM 消防車，這是市場上重要的液壓部件。我想我會很好奇。因此，當我與一些合約製造商交談時，只有少數幾家合約製造商已預訂到 2025 年 5 月或此時的訂單，並且他們正在努力最大限度地提高吞吐量。

Now I'd be curious as to when that might start turning a little more positive because those folks seem to be dealing with a lot more orders than they can even handle right now. I guess I'm curious, one are used, i.e., are you are you already seeing improvements? And then kind of the two, is that a real? I know it's just fire trucks, but is that also a high-growth market where you know, going forward.

現在我很好奇這種情況什麼時候會開始變得更加積極，因為這些人處理的訂單似乎比他們現在能處理的要多得多。我想我很好奇，其中一個已被使用，也就是說，您是否已經看到了改進？然後這兩者是真的嗎？我知道這只是消防車，但未來這也是一個快速成長的市場。

Yes, interesting green points. You have very observant there to see the virus and we put that in there because it's so there's a new application we're working on in that business would provide some modest growth opportunity for us. It's a small piece of our sales now and that way, if we win the application, we still have to work through the supply chain, the current delays in the fire truck market, as you described.

是的，有趣的綠點。你非常善於觀察，可以看到病毒，我們把它放在那裡，因為我們正在該業務中開發一個新的應用程序，將為我們提供一些適度的成長機會。現在，這只是我們銷售額的一小部分，這樣，如果我們贏得了申請，我們仍然必須解決供應鏈問題，正如您所描述的，當前消防車市場的延誤。

So in a year or two, maybe that that had some sales growth, the bigger driver for Hydraulics is dump truck dump trailer markets, garbage and waste vehicles. And there the last few quarters, orders have been dampened due to a basic chassis shortage. And I just talked with the leader of the business yesterday, the Gen orders in January have been really good in that business. And it looks like the chassis shortage for dump truck dump trailer and these broader vehicles is starting to loosen up. That's translating into sales. So we see a stronger second half for our hydraulics business.

因此，在一兩年內，也許銷售量會有所成長，液壓系統的更大推動力是自卸卡車自卸拖車市場、垃圾和廢棄車輛。過去幾個季度，由於底盤基本上短缺，訂單受到抑制。昨天我剛剛與該業務的領導進行了交談，該業務一月份的 Gen 訂單非常好。看來自卸卡車自卸拖車和這些更廣泛的車輛的底盤短缺問題開始緩解。這正在轉化為銷售額。因此，我們看到我們的液壓業務下半年會更加強勁。

Great. I was the first time around the call here. I just wanted to ask a more basic question and that is, you reiterated your fiscal 20 goals. I'm curious if you could because you're you've reached your fiscal 21 goals and about three years. Do you feel like there's a chance the Company's goals may be attainable in that same three year timeframe, call it '26 or are you on? Is it a very strictly a 5-year plan and not a year three to five years?

偉大的。我是第一次來這裡打電話。我只是想問一個更基本的問題，那就是你重申了你的20財年目標。我很好奇你是否可以，因為你已經在大約三年內實現了 21 財年目標。您是否認為公司的目標有可能在同一個三年時間內實現，稱之為「26」還是您願意？這是一個非常嚴格的五年計劃，而不是三到五年的計劃嗎？

Yes, that's a great point. We actually debated last year whether to communicate the three to five year plan. We just said, let's just not complicate things, which is, say '28 by '28. But there we could we couldn't deliver that earlier. If you talk if you think about it in answer to Chris or Mike, wherever we end up this year, we'll have four more years to get to the $1 billion fast-growth markets we believe that there's another $100 million there are new product sales are ramping up.

是的，這是一個很好的觀點。事實上，我們去年就討論過是否要傳達三到五年計畫。我們剛剛說過，我們不要讓事情複雜化，也就是說，「28 到 28」。但我們無法提前交付。如果你在回答克里斯或麥克時考慮一下，今年無論我們最終走向何方，我們還有四年的時間才能進入 10 億美元的快速增長市場，我們相信還有另外 1 億美元的新產品銷售正在上升。

New product releases are getting better and better at that. The markets we serve are relatively attractive. All we need is 3.5% sales growth over four years to get to that $1 billion. So if you give us a little more success with some new product sales and maybe a little tailwind from the market we could get there earlier.

新產品的發佈在這方面做得越來越好。我們服務的市場相對有吸引力。我們只需要四年內銷售額成長 3.5% 即可達到 10 億美元。因此，如果你透過一些新產品銷售為我們帶來更多的成功，也許還能從市場上帶來一點順風，我們就可以更早實現這一目標。

Yes.

是的。

And like that's inorganic targets, right? Obviously, anything we would do inorganically comes on top of that.

就像無機目標一樣，對吧？顯然，我們無機地做的任何事情都在此之上。

Right. Got it. Thanks so much.

正確的。知道了。非常感謝。

I'll pass along.

我就過去吧

Thank you, Mike.

謝謝你，麥克。

(Operator Instructions) Ross Sparenblek, William Blair.

（操作說明）Ross Sparenblek、William Blair。

Good morning guys through us, I think in the EVs, I mean, just given the market seems to be pretty central to China over the next few years, what does the mix look like as it relates to North America, Europe and in China?

大家早安，我想在電動車領域，我的意思是，考慮到未來幾年市場似乎對中國相當重要，那麼與北美、歐洲和中國相關的組合是什麼樣的？

Yes. So I described earlier how we're more concentrated in the higher voltage vehicles, which last year were 11 million vehicles, 3 million or high-voltage, 60% of our sales come from those the way that's spread geographically, about 50% of our sales in the EVs are in Europe 45% in China and the remainder in North America.

是的。因此，我之前描述過我們如何更集中於高壓車輛，去年有 1100 萬輛汽車，300 萬輛或高壓車輛，我們 60% 的銷售額來自於地理分佈的方式，大約 50%電動汽車銷量的45%在中國，其餘在北美。

And I guess that's very helpful. And then maybe just moving to engraving margins. Can you maybe help us parse out some of that outperformance in the second quarter. I mean taking out just normal operating leverage and maybe a pull forward of the I know footprint consolidation are still a couple hundred basis points on maybe what is that exactly? Was there any mix and what benefit should we expect to carry forward in the third quarter?

我想這很有幫助。然後也許只是轉向雕刻邊距。您能否幫助我們解析第二季度的一些出色表現。我的意思是，去掉正常的營運槓桿，也許我知道足跡整合的前移仍然是幾百個基點，也許這到底是什麼？是否有任何組合以及我們應該期望在第三季繼續帶來哪些好處？

It is seasonally low.

季節性較低。

Yes, Ross, it's Ademir up in I mean, we've talked before about our Engraving segment and performance year-over-year. We did put a lot of productivity initiatives in play, including site consolidations, which you just would you just quoted some of that is going to start reading out in Q3 and Q4?

是的，羅斯，我是說，我是阿德米爾，我們之前已經討論過我們的雕刻業務和逐年表現。我們確實實施了許多生產力舉措，包括網站整合，您是否會引用其中一些將在第三季和第四季開始讀出的舉措？

So there will be an additional savings, if you will, that we can achieve in those quarters, we always said that the Engraving target margin is over 20% us very well. It does get lumpy quarter to quarter over because based on the on the volume level, but you know, kind of on an annualized basis, we think that this Engraving segment will start giving us over 20% margins going forward.

因此，如果您願意的話，我們可以在這些季度實現額外的節省，我們總是說雕刻目標利潤率超過 20%，非常好。它確實會逐季變得不穩定，因為基於銷量水平，但你知道，按年化計算，我們認為這個雕刻細分市場將開始為我們帶來超過 20% 的利潤。

So Q3 will be lower just because of the seasonality in China and some of the softness we are seeing a little bit in North America. But as we enter into fiscal 25, we expect that engraving margin will stay over 20%.

因此，由於中國的季節性以及我們在北美看到的一些疲軟，第三季的銷售量將會較低。但隨著進入 25 財年，我們預期雕刻利潤率將維持在 20% 以上。

Yes, it's actually a pretty nice exit rate there.

是的，那裡的退出率實際上相當不錯。

And then maybe just one more here. Is there anything to read into the CapEx we entered the year, expecting roughly half of that was tied to your Electronics and Engineered customer commitments, and we reduced it by about $10 million. Now as of the second quarter. So is this just being pushed to the right, are the customer programs being pushed to the right as the only material? And I have to do it?

然後也許這裡還有一個。我們進入今年的資本支出有什麼值得解讀的嗎？預計其中大約一半與您的電子和工程客戶承諾相關，我們將其減少了約 1000 萬美元。現在截至第二季。那麼這只是被推到了右邊，客戶程式是否被推到了右邊作為唯一的材料？而我必須這樣做？

you've watched us for a while, we're getting much better at forecasting sales and profits, we have a ways to go on forecasting CapEx side. I'd say the difference between what we said coming into the year and the update now certain there's a bit of delay with some of the capital equipment that we that we need in our plants and some of that's been pushed to the right. And we did in the last year, we talked about we've reduced headcount in some businesses to adjust to the lower sales in the end markets that kind of reduces the manpower to implement projects. So that pushes some projects to the right. Those are two big two major factors element that's often guys.

您已經關注我們一段時間了，我們在預測銷售和利潤方面做得越來越好，我們有辦法繼續預測資本支出。我想說的是，我們今年所說的和現在的更新之間的區別是，我們工廠需要的一些資本設備有一些延遲，其中一些已經被推到了右邊。去年我們就這樣做了，我們談到我們減少了一些企業的員工人數，以適應終端市場較低的銷售額，這在某種程度上減少了實施專案的人力。因此，這將一些項目推向了右側。這是兩個重要的因素，通常是男人。

Well, thank you. And good luck.

嗯，謝謝。還有祝你好運。

Thank you, Ross.

謝謝你，羅斯。

(Operator Instructions) Gary Prestopino, Barrington Research.

（操作員說明）Gary Prestopino，Barrington Research。

Hey, good morning, David and me or Chris a couple of questions here.

嘿，早上好，大衛和我或克里斯有幾個問題。

First of all, on the Engraving side, you said you're looking at some lower sales in Q three. Are those lower sales, a function of what you're seeing in the automotive market or what markets are actually causing that to move down sequentially?

首先，在雕刻方面，您說您看到第三季的銷售額有所下降。這些較低的銷售是否與您在汽車市場中看到的情況有關，或者哪些市場實際上導致銷售持續下降？

Yes, it if this happens every year since such good Chinese New Year effect, we do sizable business in China is very profitable and still slows down for a couple of weeks every time this year.

是的，如果這種情況每年都發生的話，因為春節效應這麼好，我們在中國做的大量業務非常有利可圖，但今年每年仍然會放緩幾週。

Okay.

好的。

So nothing in there in terms of that sort of systemic to some particular industry or serving. It's just a slowdown in China to win.

因此，對於某些特定行業或服務來說，其中沒有任何系統性的內容。只是中國隊贏球速度慢了而已。

Right and this business from quarter to quarter, there are no waves and there's also some project timing issues. So North America is going to be a little slower as well, simply from the timing of platforms.

是的，這個業務從一個季度到另一個季度，沒有波動，而且還存在一些專案時間安排問題。因此，僅從平台的時間安排來看，北美的速度也會慢一些。

Right. Okay.

正確的。好的。

And then in regard to Q3 with this charge that you're going to take for a new D&B, those that have had a charge?

然後，關於第三季的費用，您將為新的 D&B 收取費用，那些已經收取費用的人？

Yes.

是的。

Your retirement thing besides getting your Medicare card, right, I have passed that. Will you be backing that charge back into your adjusted EBITDA calculation will evolve?

你退休的事情除了拿到你的醫療保險卡之外，對吧，我已經通過了。您是否會將這筆費用重新納入調整後的 EBITDA 計算中？

It will not be adjusted. We look at this as a timing thing, Gary, at some point, this would be in part of our P&L and we didn't feel it was appropriate to call that out as an adjustment. So it will be included in our the corporate actions right in our corporate expenses line.

不會進行調整。我們認為這是一個時機問題，加里，在某些時候，這將成為我們損益表的一部分，我們認為將其作為調整是不合適的。因此，它將包含在我們的公司行動中，就在我們的公司費用項目中。

Okay. And then could you just refresh my memory as to on what are you paying percent you and how are you paying for it?

好的。然後你能幫我回憶一下你支付的費用是多少以及你是如何支付的嗎？

Is that it's a debt transaction and you're paying all data or just from drug lowering your cash balances?

這是一筆債務交易，您需要支付所有數據費用，還是只是透過藥物來降低您的現金餘額？

Well, first of all, we are taking it from our existing cash balances remember, I'll just remind you on the sale of protocol where we netted $70 million and we used that to buy Xinyu two by Medtronics and then yield to even additional money back to the shareholders in terms of dividends or share buybacks. And that's kind of that's the way we would the that the Navy was funded.

好吧，首先，我們是從我們現有的現金餘額中提取的，記住，我只是提醒您有關出售協議的事情，我們淨賺了7000 萬美元，我們用這筆錢購買了美敦力(Medtronics)的新宇2 號產品，然後還獲得了額外的資金以股息或股票回購的形式回饋股東。這就是我們資助海軍的方式。

We haven't released. We're still waiting to close. We'll disclose more information about the exact purchase price and everything else as we as we close the as we close the transaction. But that gives you a good indication of what we what we what we have paid.

我們還沒有發布。我們還在等待關門。我們將在交易結束時披露有關確切購買價格和其他所有資訊的更多資訊。但這可以很好地表明我們所付出的代價。

Okay. Thank you.

好的。謝謝。

Thank you.

謝謝。

And there are no further questions at this time. I'd now like to turn the call back over to Mr. David Dunbar for final closing comments, or do you want to thank everybody for joining us for the call.

目前沒有其他問題。現在我想將電話轉回給 David Dunbar 先生以徵求最後的總結意見，或者您想感謝大家加入我們的電話會議嗎？

We enjoy reporting on our progress at Standex. And finally, again, I want to thank our employees, the Board of Directors and shareholders for your continued support and contributions. We look forward to speaking with you again in our fiscal third quarter 2024 call.

我們喜歡報告我們在斯坦德斯的進展。最後，我要再次感謝我們的員工、董事會和股東的持續支持和貢獻。我們期待在 2024 年第三財季電話會議中再次與您交談。

Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely.

謝謝。女士們、先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。有一個可愛的。