Teledyne Technologies Inc (TDY) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Teledyne First Quarter Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們，先生們，感謝你們的支持，歡迎來到 Teledyne 第一季度財報電話會議。 （操作員說明）提醒一下，正在錄製此會議。

I'd now like to turn the call over to our host, Mr. Jason VanWees. Please go ahead, sir.

我現在想把電話轉給我們的主持人 Jason VanWees 先生。請繼續，先生。

Thanks, Brad, and good morning, everyone. This is Jason VanWees, Vice Chairman, and I'd like to welcome everyone to Teledyne's First Quarter 2023 earnings release conference call. We released our earnings earlier this morning before the market opened.

謝謝，布拉德，大家早上好。我是副董事長 Jason VanWees，歡迎大家參加 Teledyne 2023 年第一季度收益發布電話會議。我們今天早上在市場開盤前發布了我們的收益。

Joining me today are Teledyne's Chairman, President and CEO, Robert Mehrabian; SVP and CFO, Sue Main; SVP, General Counsel, Chief Compliance Officer and Secretary, Melanie Cibik and also Edwin Roks, Executive VP of Teledyne. After remarks by Robert and Sue, we will ask for your questions. Of course, before we get started, please be aware that all forward-looking statements made this morning are subject to various assumptions, risks and caveats, as noted in the earnings release and their periodic SEC filings, and actual results may differ materially. In order to avoid potential selective disclosures, this call is simultaneously being webcast and a replay, both via webcast and dial-in, will be available for approximately 1 month. Here is Robert.

今天加入我的是 Teledyne 的董事長、總裁兼首席執行官 Robert Mehrabian；高級副總裁兼首席財務官 Sue Main；高級副總裁、總法律顧問、首席合規官兼秘書 Melanie Cibik 以及 Teledyne 執行副總裁 Edwin Roks。在 Robert 和 Sue 發言後，我們將向您提問。當然，在我們開始之前，請注意今天上午所做的所有前瞻性陳述都受到各種假設、風險和警告的影響，如收益發布及其定期向美國證券交易委員會提交的文件中所述，實際結果可能存在重大差異。為了避免潛在的選擇性披露，此電話會議同時進行網絡直播，並且通過網絡廣播和撥入可以重播大約 1 個月。這是羅伯特。

Thank you, Jason. Good morning, everyone, and thank you for joining our earnings call. We began 2023 with record first quarter sales, operating margin non-GAAP earnings and free cash flow. Overall, sales increased 4.7% with revenue and operating profit growing in every segment. Excluding foreign currency headwinds, which negatively impacted first quarter sales growth by approximately 1.4%. Growth in local currency would have been 6.1%. Excluding acquisitions, core growth in local currency would have been approximately 4.2%.

謝謝你，傑森。大家早上好，感謝您加入我們的財報電話會議。 2023 年伊始，我們的第一季度銷售額、營業利潤率非 GAAP 收益和自由現金流均創歷史新高。總體而言，銷售額增長了 4.7%，每個部門的收入和營業利潤均有所增長。不包括對第一季度銷售額增長產生約 1.4% 負面影響的外匯不利因素。以當地貨幣計算的增長率為 6.1%。不包括收購，以當地貨幣計算的核心增長率約為 4.2%。

GAAP operating margin of 17.5% and non-GAAP operating margin of 21.1% were also first quarter record. First quarter GAAP earnings per share were $3.73, and non-GAAP earnings of $4.53 were also first quarter record. Given record first quarter cash flow, our consolidated leverage ratio declined to 2.3% even after completing the ChartWorld acquisition at the beginning of the quarter. We also repaid $300 million of debt, which matured on April 3 on the first day of the second quarter.

17.5% 的 GAAP 營業利潤率和 21.1% 的非 GAAP 營業利潤率也創下了第一季度的記錄。第一季度 GAAP 每股收益為 3.73 美元，非 GAAP 每股收益 4.53 美元也創下了第一季度的記錄。鑑於第一季度創紀錄的現金流，即使在本季度初完成對 ChartWorld 的收購後，我們的綜合槓桿率仍降至 2.3%。我們還償還了 3 億美元的債務，這些債務於 4 月 3 日第二季度的第一天到期。

Turning to our 2023 full year outlook. We are reaffirming our prior sales and non-GAAP earnings per share outlook. As supply chain challenges improved modestly, we were able to exceed our original first quarter sales and earnings outlook by pulling forward some revenue from the second quarter. Consequently, by maintaining the full year guidance, we've also modestly de-risked the quarterly sequential revenue and earnings loans. While our short-cycle businesses are more economically sensitive, they were resilient in the first quarter, we are now a little more cautious.

轉向我們的 2023 年全年展望。我們重申我們之前的銷售額和非 GAAP 每股收益展望。隨著供應鏈挑戰的適度改善，我們能夠通過從第二季度提前一些收入來超過我們最初的第一季度銷售和盈利預期。因此，通過維持全年指引，我們也適度降低了季度連續收入和收益貸款的風險。雖然我們的短週期業務對經濟更為敏感，但它們在第一季度具有彈性，但我們現在更加謹慎。

On the other hand, we are more positive in our longer-cycle Medical, Aerospace, Defense and Marine businesses. On revenue, specifically, we continue to see total 2023 growth of approximately 5% or sales of approximately $5.73 billion with the second quarter being roughly $1.4 billion. Regarding margins, our earnings outlook implies approximately 40 basis points of margin improvement for the full year 2023. Currently, we think the Instrumentation segment will be above average contributor to this, while margins in the other segments may increase more modestly.

另一方面，我們對周期較長的醫療、航空航天、國防和海洋業務更為樂觀。具體而言，在收入方面，我們繼續看到 2023 年的總增長率約為 5% 或銷售額約為 57.3 億美元，第二季度約為 14 億美元。關於利潤率，我們的盈利前景暗示 2023 年全年利潤率將提高約 40 個基點。目前，我們認為儀器儀表部門對此的貢獻將高於平均水平，而其他部門的利潤率增長可能更為溫和。

I will now further comment on the performance of our 4 business segments. Our Digital Imaging segment was founded on our first acquisition in 2006 of Teledyne Scientific, our research laboratories and imaging which provides high-end in-product sensors for space and astronomy. Since then, this segment has grown organically and through acquisitions such as DALSA, e2v, scientific cameras, FLIR and most recently, (inaudible) to contribute almost 56% of Teledyne's revenue today.

我現在將進一步評論我們 4 個業務部門的表現。我們的數字成像部門成立於 2006 年首次收購 Teledyne Scientific，我們的研究實驗室和成像部門為太空和天文學提供高端產品內傳感器。從那時起，該細分市場通過收購 DALSA、e2v、科學相機、FLIR 以及最近（聽不清）實現了有機增長，如今貢獻了 Teledyne 近 56% 的收入。

First quarter sales in this segment increased 4.7% on a constant currency basis with foreign currency translation contributing negative 1.8%. Sales increased year-over-year for industrial and scientific vision systems as well as for our low-dose high-resolution digital x-ray detectors, but were offset by lower sales of unmanned ground systems for defense applications. Our product families increased or decreased more modestly with higher sales of surveillance, unmanned their systems and especially -- specialty semiconductor and devices offset by some lower sales of certain commercial infrared imaging and marine products. GAAP segment -- GAAP segment operating margin increased 40 basis points to 15.8% and adjusted for a reduced intangible asset amortization non-GAAP margin decreased 13 basis points, and it was lower at 21.75%.

該部門第一季度銷售額按固定匯率計算增長 4.7%，外幣換算貢獻負 1.8%。工業和科學視覺系統以及我們的低劑量高分辨率數字 X 射線探測器的銷售額同比增長，但被用於國防應用的無人地面系統的銷售額下降所抵消。我們的產品系列隨著監控銷售額的增加或減少而有所增加或減少，無人駕駛他們的系統，特別是 - 特種半導體和設備被某些商業紅外成像和海洋產品的銷售額下降所抵消。 GAAP 分部——GAAP 分部營業利潤率增長 40 個基點至 15.8%，並針對減少的無形資產攤銷進行調整，非 GAAP 利潤率下降 13 個基點，降至 21.75%。

Turning to our Instrumentation segment. It is comprised of marine, test and measurement and environmental instruments and contributes about 24% to Teledyne's revenue. Overall, first quarter sales increased 8% versus last year's with sales growing in all fields north and above. Sales of marine instruments increased a healthy 14.6% in the quarter, primarily due to strong marine defense sales, especially autonomous underwater vehicles as well as ongoing recovery in offshore energy markets.

轉向我們的儀器部門。它由海洋、測試和測量以及環境儀器組成，佔 Teledyne 收入的 24% 左右。總體而言，第一季度的銷售額比去年同期增長了 8%，北部和北部所有領域的銷售額都在增長。本季度海洋儀器的銷售額健康增長 14.6%，這主要是由於海洋防禦銷售強勁，尤其是自主水下航行器，以及海上能源市場的持續復甦。

Sales of electronic test and measurement systems, which include oscilloscopes, digitizers and protocol analyzers collectively increased 5.3% year-over-year despite a tough comparison with the first quarter of last year. Some softness in sales of analyzers and electronic storage and high-speed networking applications was more than offset by devices for wireless and video protocols as well as very strong sales of oscilloscopes and related accessories.

包括示波器、數字化儀和協議分析儀在內的電子測試和測量系統的銷售額同比增長 5.3%，儘管與去年第一季度相比表現不佳。分析儀、電子存儲和高速網絡應用的銷售疲軟被無線和視頻協議設備以及示波器和相關附件的強勁銷售所抵消。

Sales of environmental instruments increased 3.4% compared with last year with greater sales of air quality, process gas and safety analyzers partially offset by drug discovery and laboratory instruments. The other 2 segments of Teledyne are Aerospace and Defense Electronics and Engineered Systems that together contribute 20% of Teledyne's revenue. In the Aerospace and Defense Electronics segment, first quarter sales increased 4.2%, driven by growth of both defense and commercial aerospace products. GAAP and non-GAAP segment operating profit increased approximately 9.6% with margins 132 basis points greater than last year.

與去年相比，環境儀器的銷售額增長了 3.4%，空氣質量、過程氣體和安全分析儀的銷售額增加部分被藥物發現和實驗室儀器所抵消。 Teledyne 的其他兩個部門是航空航天和國防電子以及工程系統，它們共同貢獻了 Teledyne 收入的 20%。在航空航天和國防電子領域，第一季度銷售額增長 4.2%，主要受國防和商用航空航天產品增長的推動。 GAAP 和非 GAAP 部門營業利潤增長約 9.6%，利潤率比去年高 132 個基點。

In the Engineered Systems segment, first quarter revenue increased 9.1% and operating profit increased 6.4%, resulting in a modest 25 basis points decline in margin from last year. Finally, first, because of our unwavering focus on improving all aspects of Teledyne's operations; and second, prudent capital allocation; and third, the broad geographic and end markets that we serve from short cycle to long cycle commercial to defense. I'm optimistic that Teledyne we successfully navigate through today's uncertain economic times as we have consistently done so in the past.

在工程系統領域，第一季度收入增長 9.1%，營業利潤增長 6.4%，導致利潤率較去年同期小幅下降 25 個基點。最後，首先，因為我們堅定不移地專注於改進 Teledyne 運營的各個方面；第二，審慎的資本配置；第三，我們服務的廣泛地理和終端市場，從短週期到長周期商業再到國防。我對 Teledyne 感到樂觀，因為我們在過去一直這樣做，我們成功地度過了當今不確定的經濟時代。

Our record also shows that we have successfully dealt with multiple economic turmoils and during the ensuing recoveries have been able to acquire complementary enterprises for compounded growth.

我們的記錄還表明，我們成功應對了多次經濟動盪，並在隨後的複蘇中收購了互補企業以實現複合增長。

I will now turn the call over to Sue.

我現在將把電話轉給蘇。

Thank you, Robert, and good morning, everyone. I will first discuss some additional financials for the quarter not covered by Robert, and then I will discuss our second quarter and full year 2023 outlook.

謝謝你，羅伯特，大家早上好。我將首先討論羅伯特未涵蓋的本季度的一些額外財務數據，然後我將討論我們的第二季度和 2023 年全年展望。

In the first quarter, cash flow from operating activities was $203 million and primarily reflected higher accounts receivable collections compared with the first quarter of 2022. Free cash flow, that is cash from operating activities less capital expenditures, was $178.6 million in the first quarter of 2023 compared with adjusted free cash flow of $58.7 million in 2022. The 2022 adjusted value excluded a $296.4 million payment to the Swedish tax authority related to a FLIR pre-acquisition tax reassessment. Capital expenditures were $24.4 million in the first quarter of 2023 compared with $21 million in 2022. Depreciation and amortization expense was $82.1 million for the first quarter of 2023 compared with $86.9 million.

第一季度，經營活動產生的現金流為 2.03 億美元，主要反映了與 2022 年第一季度相比更高的應收賬款收款。自由現金流，即經營活動產生的現金減去資本支出，在第一季度為 1.786 億美元2023 年調整後的自由現金流為 5870 萬美元，2022 年調整後的價值不包括向瑞典稅務機關支付的與 FLIR 收購前稅收重新評估相關的 2.964 億美元款項。 2023 年第一季度的資本支出為 2440 萬美元，而 2022 年為 2100 萬美元。2023 年第一季度的折舊和攤銷費用為 8210 萬美元，而 2022 年為 8690 萬美元。

We ended the quarter with approximately $3.16 billion of net debt. That is approximately $3.82 billion of debt less cash of $665.2 million. Stock-based compensation expense was $7.9 million in the first quarter of 2023 compared with $9 million in 2022.

本季度結束時，我們的淨債務約為 31.6 億美元。這大約是 38.2 億美元的債務減去 6.652 億美元的現金。 2023 年第一季度基於股票的薪酬支出為 790 萬美元，而 2022 年為 900 萬美元。

Turning to our outlook. Management currently believes that GAAP earnings per share in the second quarter of 2023 will be in the range of $3.76 to $3.88 per share with non-GAAP earnings in the range of $4.56 to $4.66. And for the full year 2023, our GAAP earnings per share outlook is $15.80 to $16.05. And on a non-GAAP basis, we are maintaining our prior outlook of $19 to $19.20.

轉向我們的前景。管理層目前認為，2023 年第二季度的 GAAP 每股收益將在 3.76 美元至 3.88 美元之間，非 GAAP 收益將在 4.56 美元至 4.66 美元之間。對於 2023 年全年，我們的 GAAP 每股收益預期為 15.80 美元至 16.05 美元。在非 GAAP 基礎上，我們維持之前 19 美元至 19.20 美元的預期。

The 2023 full year estimated tax rate, excluding discrete items, is expected to be 23%. I will now pass the call back to Robert.

2023 年全年預估稅率（不包括離散項目）預計為 23%。我現在將電話轉回給羅伯特。

Thank you, Sue. We would now like to take your questions. Brad, if you're ready to proceed with the question and answers, please go ahead.

謝謝你，蘇。我們現在想回答您的問題。 Brad，如果你準備好繼續問答，請繼續。

(Operator Instructions) We can first go to Jim Ricchiuti with Needham & Company.

（操作員說明）我們可以先去 Needham & Company 的 Jim Ricchiuti。

Robert, I'm wondering if you could talk a little bit about the shorter cycle areas of the instrumentation business. I think you gave some color about the digital imaging short-cycle business. But if you look at instrumentation, any changes that you're seeing in that shorter cycle business?

羅伯特，我想知道你是否可以談談儀器業務的較短週期領域。我認為您對數字成像短週期業務有所了解。但是，如果您查看儀器儀表，您在較短週期業務中看到的任何變化？

Not much. There's a little bit of -- in one of our businesses where -- which is our test and measurement, we make protocol -- protocol solutions, provide protocol solutions to the electronics industry. There, we have some new product protocols coming out. So people are a little waiting for the new ones and maybe not buying the old ones.

不多。在我們的一項業務中，有一點——我們的測試和測量，我們製作協議——協議解決方案，為電子行業提供協議解決方案。在那裡，我們推出了一些新的產品協議。所以人們有點等待新的，也許不買舊的。

Other than that, where the book-to-bill is almost one, oscilloscopes are doing well. And in the T&M, we feel all right. On the environmental the only thing that there's a little softness that we're experiencing in the pharmaceutical market, where we supply a whole range of products there, but we're making that up by some of our air quality and other products that are doing well in this environment. So overall, I think [we do know right,] okay.

除此之外，在訂單出貨比幾乎為一的情況下，示波器表現良好。在 T&M 中，我們感覺很好。在環境方面，我們在製藥市場遇到的唯一一點疲軟，我們在那裡提供全系列的產品，但我們正在通過我們的一些空氣質量和其他正在做的產品來彌補這一點好在這個環境。所以總的來說，我認為 [我們確實知道，] 好吧。

Got it. Since you were good enough to give us a book-to-bill, which I think was for the entire instrumentation business. I'm wondering if you could provide some book-to-bill color on Digital Imaging and the Aerospace and Defense and maybe the company as a whole?

知道了。由於您足夠好，可以為我們提供訂單發貨，我認為這適用於整個儀器儀表業務。我想知道您是否可以提供一些關於數字成像、航空航天和國防以及整個公司的訂單到賬單顏色？

Yes. Jim, on the Instrumentation, if you put Marine in, which we didn't talk about, Marine has got a book-to-bill of 1.12. So it's very healthy. So because of that, it pulls instrumentation as of all above 1 to 1.04. Going to Digital Imaging, book-to-bill is less than 1, not substantially, but less than 1.

是的。 Jim，在 Instrumentation 方面，如果你把 Marine 放進去，我們沒有討論過，Marine 的訂單出貨比是 1.12。所以它非常健康。因此，正因為如此，它將儀器從 1 提升到 1.04。對於數字成像，訂單出貨比小於 1，不是很大，而是小於 1。

Primarily, I think, because of some of the ground-based defense systems that we have which is about a little over 0.9. But having said that, we have some really large orders coming, and we've also, post-quarter, had a large order for our Black Hornet. Smaller UAVs. When we had -- right after the quarter, as an example, we had a $94 million award for those. And by the way, those are also in high demand in the Ukraine conflict.

我認為，主要是因為我們擁有的一些地面防禦系統大約略高於 0.9。但話雖如此，我們有一些非常大的訂單，而且我們在季度後也為我們的 Black Hornet 訂購了大量訂單。更小的無人機。例如，在本季度剛結束時，我們就獲得了 9400 萬美元的獎勵。順便說一句，這些在烏克蘭衝突中也有很高的需求。

So overall, I'm encouraged with what's happening in Digital Imaging has been a little lag in the defense part, but that's coming up as the backlog is filling in, and it's -- we have better orders this quarter, first quarter than we did last year. And then on the AD&E side, I think book-to-bill is 1.05. Engineered Systems is close to 1, but that's lumpy. So I think we're going to be fine there.

總的來說，我對 Digital Imaging 中發生的事情感到鼓舞，防禦部分有點滯後，但隨著積壓工作的填補，我們本季度的訂單比第一季度更好去年。然後在 AD&E 方面，我認為訂單出貨比為 1.05。 Engineered Systems 接近於 1，但很不穩定。所以我認為我們在那裡會很好。

Overall, for the company, I'd say when you add all those numbers up, it's slightly less than 1%, maybe 0.96, 0.97, but that's not a very great concern at this time. We're just being cautious as we always are because of the uncertain times that everybody is facing. Other than that, I feel pretty good about our portfolio and its resilience.

總的來說，對於公司來說，我會說當你把所有這些數字加起來時，它略低於 1%，可能是 0.96、0.97，但目前這並不是一個非常大的問題。我們只是一如既往地保持謹慎，因為每個人都面臨著不確定的時期。除此之外，我對我們的投資組合及其彈性感到非常滿意。

Got it. And just final question, if I may, just in light of that some of the uncertainty that's out there. I think you've talked about M&A. Should we still think mainly about M&A this year as more tuck-in related? And then potentially, as we come out of this, there might be some opportunities for larger deals in '24? Is that the better way to think about M&A, again, without being specific, which I know you can't be.

知道了。最後一個問題，如果可以的話，只是考慮到那裡存在的一些不確定性。我想你已經談到了併購。今年我們是否還應該主要考慮併購，因為它與內購更相關？然後有可能，當我們走出這一步時，可能會有一些機會在 24 世紀進行更大的交易？這是否是考慮併購的更好方式，再一次，沒有具體的，我知道你不能。

No, I understand, Jim. I think that's a good analysis. There might -- we're obviously chasing some what we call the string of pearls M&As. We -- it's possible that we might end up with something more midsized near the end of the year. But definitely, with our balance sheet we have -- right now, we have drawn down on our line of credit, which is about $1.15 billion. We've only drawn down $25 million, and it's sitting there. We paid all of our debt that's coming due. And we don't have any debt payments until 2024. And we have a lot of capacity for -- to do larger deals as the opportunity comes. And of course, we're looking at things. But you're right. Larger deals take time. And it would probably be more like early '24 or sometime in '24.

不，我明白，吉姆。我認為這是一個很好的分析。可能 - 我們顯然正在追逐一些我們稱之為珍珠串的併購。我們 - 我們可能會在年底前完成一些更中型的產品。但可以肯定的是，根據我們的資產負債表，我們現在已經動用了大約 11.5 億美元的信貸額度。我們只提取了 2500 萬美元，而且還在那裡。我們還清了所有到期的債務。而且我們在 2024 年之前沒有任何債務償還。而且我們有很大的能力——在機會來臨時進行更大規模的交易。當然，我們正在看事情。但你是對的。更大的交易需要時間。它可能更像是 24 年初或 24 年代的某個時候。

And next, we can go to Greg Konrad with Jefferies.

接下來，我們可以和 Jefferies 一起去 Greg Konrad。

And maybe just to revisit Digital Imaging, is there any way to kind of decompose the organic growth just given your short cycle commentary, when you think about health care, machine vision space and maybe the legacy FLIR business. Just kind of what trends you're seeing and you mentioned being more cautious on short cycle? Like how are you thinking about Digital Imaging for the year?

也許只是為了重新審視數字成像，當您考慮醫療保健、機器視覺空間以及可能是遺留的 FLIR 業務時，是否有任何方法可以根據您的短週期評論分解有機增長。您看到的趨勢是什麼，您提到要對短週期更加謹慎？比如您如何看待今年的數字成像？

Well, first, let's start with Q1. Organic -- and let's also do what you suggested, which is stay with first, what we would call our historical digital imaging, which is also [A2B] and associated companies. There, we had a healthy organic growth in Q1 of 6.2%. Healthcare grew 9.2% and MEMS grew 8.8%.

好吧，首先，讓我們從第一季度開始。有機——讓我們也按照你的建議去做，那就是先留下來，我們稱之為我們的歷史數字成像，這也是 [A2B] 和相關公司。在那裡，我們在第一季度實現了 6.2% 的健康有機增長。醫療保健增長 9.2%，MEMS 增長 8.8%。

So overall, very happy with that. And some of those, like smaller cycle vision systems had a healthy growth rate there. On the clear side of the equation, which would be the newer digital imaging, we have both positives and negatives. Overall, we had a contraction of about 4.8%, but that was primarily driven by our unmanned systems and primarily in the unmanned grown vehicle systems. As I said, after the quarter, we've had some very healthy awards in our UAVs, which are unmanned their vehicles.

總的來說，對此非常滿意。其中一些，比如較小的循環視覺系統，在那裡有健康的增長率。在等式的明確方面，即較新的數字成像，我們既有積極的一面也有消極的一面。總體而言，我們收縮了約 4.8%，但這主要是由我們的無人系統驅動的，主要是在無人駕駛車輛系統中。正如我所說，在本季度之後，我們的無人機獲得了一些非常健康的獎項，這些獎項是無人駕駛的。

Surveillance decline, it was plus 5%. Tomography was down a little bit, a little under 4%, but uncooled and cooled cores, which are our infrared cores. They were up 3% and Industrial Vision System was up almost 19 -- over 19%. So it was a mixed bag. The drag down for that business was primarily in the defense and primarily unmanned ground systems.

監視下降，它是加 5%。層析成像略有下降，略低於 4%，但未冷卻和冷卻的核心，即我們的紅外線核心。它們上漲了 3%，Industrial Vision System 上漲了近 19%——超過 19%。所以這是一個混合包。該業務的拖累主要是國防和無人地面系統。

Now we had a little softness in Tomography and Maritime, which is our Marine businesses. But overall, I think we were okay. We just have to fill out the backlog for our unmanned vehicles, ground vehicles and we'll be fine.

現在我們在斷層掃描和海事方面有些軟弱，這是我們的海事業務。但總的來說，我認為我們還好。我們只需要填寫我們的無人駕駛車輛、地面車輛的積壓工作就可以了。

And this might just be mismodeling on my part, but I mean margin seemed a little light in digital imaging in the quarter. Can you maybe talk about price mix going forward and how you're expecting margins to trend for the year, given your commentary. I think you still expect them to be up just to a lesser degree than the total 40 for the company.

這可能只是我的模型錯誤，但我的意思是本季度數字成像的利潤率似乎有點低。根據您的評論，您能否談談未來的價格組合以及您對今年利潤率趨勢的預期。我認為您仍然希望他們的增長程度低於公司的總數 40。

Well, right now, when I say, I expect the margins to be up about 30 basis points for the year, but start with the year. And this is the overall Digital Imaging margin. So we put that on one side. I think in Q2, will improve sequentially on our margins and we should be fine. And we've had -- we're also going to take some price actions to make sure that we get there.

好吧，現在，當我說時，我預計今年的利潤率將上升約 30 個基點，但從今年開始。這是整體數字成像利潤率。所以我們把它放在一邊。我認為在第二季度，我們的利潤率將連續改善，我們應該會沒事的。而且我們已經 - 我們還將採取一些價格行動以確保我們到達那裡。

On the overall for the company, we think the margins now would increase 40 basis points for the year. And if we can have better price increases going forward, we should improve on that. So when I look at it, I said, look, if we not instruments businesses, we're going to have margin improvement for the year of almost 80 basis points. Digital Imaging, about 30 basis points, Aerospace and Defense is so healthy that I'll be happy to just keep our 27.1% operating margin. Engineered Systems will probably increase 50 basis points. And overall, the segment is 40 basis points -- on the company about 40 basis points. That -- I hope that helps you.

就公司的整體而言，我們認為今年的利潤率現在將增加 40 個基點。如果我們未來能有更好的價格上漲，我們應該改進這一點。所以當我看到它時，我說，看，如果我們不為業務提供工具，我們今年的利潤率將提高近 80 個基點。數字成像，大約 30 個基點，航空航天和國防非常健康，我很樂意保持我們 27.1% 的營業利潤率。工程系統可能會增加 50 個基點。總體而言，該細分市場為 40 個基點——公司約為 40 個基點。那-- 我希望對你有所幫助。

That was perfect. I'll leave it at too.

那太完美了。我也會把它留在。

And next, we have Elizabeth Grenfell with Bank of America.

接下來，我們有來自美國銀行的 Elizabeth Grenfell。

Could you give us some color on defense on a consolidated basis for the quarter? And then what your expectations are for defense growth on a consolidated basis for the year?

您能否在本季度的綜合基礎上給我們一些防禦方面的色彩？那麼，您對今年國防在綜合基礎上的增長有何期望？

Yes, sure. I think overall, in Q1 defense was flat year-over-year. We think for the year, it will be probably low to mid-single-digit growth in our defense businesses. The primary reason, again, I'm saying the U.S. government programs were flat, primarily driven, as I said, but the ground vehicles, unmanned ground vehicles. We think for the year, we're probably growing the mid- single digits in all defense.

是的，當然。我認為總體而言，第一季度的防禦同比持平。我們認為今年，我們的國防業務可能會實現低到中個位數的增長。主要原因，再次，我說美國政府計劃是持平的，主要是駕駛，正如我所說，但地面車輛，無人地面車輛。我們認為今年，我們可能在所有防禦中增長中等個位數。

And next, we can go to Giordano with TD Cowen.

接下來，我們可以和 TD Cowen 一起去佐丹奴。

You talked about pulling forward some revenue from 2Q into 1Q. Can you give some detail there is like where it was and what that means for that business from here?

你談到將一些收入從第二季度提前到第一季度。你能否提供一些細節，比如它在哪裡，以及這對這裡的企業意味著什麼？

I think basically, we pulled in about $10 million and most of that was in instruments. Most of that was in our Marine businesses. We ship more in the water vehicles in Q1 that we had anticipated. We had some really good orders. We actually have good orders for Q2 also. So that was just to ensure that we hit what we expected to.

我想基本上，我們賺了大約 1000 萬美元，其中大部分用於樂器。其中大部分是在我們的海洋業務中。我們在第一季度出貨了更多我們預期的水上交通工具。我們有一些非常好的訂單。我們實際上也有第二季度的好訂單。所以這只是為了確保我們達到我們的預期。

And also, as I said, that was affected by the fact that we're having improvements in our supply chain, we're seeing improvement, significant improvement and expect that to continue the rest of the year based on what we're seeing and based on what the Chief of our procurement is doing with various companies. So that's why we pulled it forward. We felt we could and did.

而且，正如我所說，這受到了我們正在改善供應鏈這一事實的影響，我們看到了改善，顯著改善，並預計今年餘下時間將根據我們所看到的和基於我們的採購主管在不同公司所做的事情。所以這就是我們推動它前進的原因。我們覺得我們可以並且做到了。

No, that makes sense. Now when I think about the full year guide, I mean, so you come in basically at the high end of your guide here. You're guiding the second quarter. High end is basically in line with consensus. You guys tend to be -- you're holding the full year, understanding that the macro is uncertain, like are you trying to give the impression that the second half is weaker than you thought 3 months ago? Or are you kind of like derisking that full year guide? Like how should we think about the -- what's [between] the lines there?

不，這是有道理的。現在，當我想到全年指南時，我的意思是，所以你基本上處於指南的高端。你正在指導第二季度。高端基本符合共識。你們傾向於 - 你持有全年，了解宏觀不確定性，就像你試圖給人的印像是下半年比你 3 個月前想像的要弱？還是您有點想取消全年指南的風險？就像我們應該如何考慮 - 那裡的[之間]是什麼？

Between the lines, I don't think it's going to be weaker, except if something terrible happens. It's -- I feel good -- look, as you know, we're always more conservative. I can go out and say we're going to make a lot more in our earnings per share, and we probably could.

言外之意，我認為它不會變弱，除非發生可怕的事情。這是——我感覺很好——看，如你所知，我們總是比較保守。我可以出去說我們的每股收益將增加很多，而且我們可能可以。

On the other hand, with the uncertain environment that we're facing with semiconductors being down, everybody is projecting semiconductors would recover in '24, not this year, both equipment and supply. And we obviously, we serve those markets. I'm being cautious as we always are. And -- but I don't think the second -- right now, I don't think the second half is going to be weaker. I think it's going to be actually stronger. If you look at earnings per share, they have to improve in the second half of the year for us to make the [1910] that we projected or [1920], if you want to take the high end.

另一方面，由於我們面臨半導體下滑的不確定環境，每個人都預測半導體將在 24 年復蘇，而不是今年，包括設備和供應。顯然，我們服務於這些市場。我一如既往地保持謹慎。而且 - 但我不認為第二個 - 現在，我認為下半場不會變弱。我認為它實際上會更強大。如果你看一下每股收益，他們必須在下半年有所改善，才能讓我們達到我們預測的 [1910] 或 [1920]，如果你想走高端的話。

Yes. Okay. Two more quick ones for me. You started off the year, free cash flow is pretty high. Like what are your expectations for the year now? Does that go up higher than what you thought before? And then just curious on the supply chain improvement and the lack of having to pay as much gray market? Like how much benefit is that -- of that 40 bps, like how much you're getting from there? And where is it getting offset from in other elements of costs?

是的。好的。對我來說還有兩個快速的。你從今年開始，自由現金流非常高。比如你對今年的期望是什麼？這比你之前想像的要高嗎？然後只是對供應鏈的改進和無需支付盡可能多的灰色市場感到好奇？就像那 40 個基點的好處是多少，比如你從那裡得到了多少？它從哪裡抵消了其他成本要素？

Let me start with the free cash flow. We're going to beat last year's free cash flow by a couple of hundred million dollars, let's just say, 850 is our current estimate. I hope we can do better than that. And we have just continued deleveraging the company gets ready for when all of this is uncertainties behind us and use our capability and ability to buy things that have not perhaps done as well in this environment.

讓我從自由現金流開始。我們將比去年的自由現金流多出幾億美元，我們目前的估計是 850 美元。我希望我們能做得更好。我們剛剛繼續去槓桿化，公司為所有這些不確定性都已經過去做好準備，並利用我們的能力和能力購買在這種環境下可能做得不好的東西。

Coming back to the supply chain. We've seen improvement in Q1. Last year in Q1, we are brokerage -- we bought about [$23] million of goods from brokerage and those we pay 70% premium, let's say, this year, first quarter, the same type of thing, cost us about half as much as that. And so that's a savings, obviously. But more importantly, if you look at revenue that's being affected by the shortages that is improving, which is much more comforting to me because it makes our revenue projections a little more predictable because we don't have -- we're not missing a lot of revenue because we don't have parts.

回到供應鏈。我們已經看到第一季度有所改善。去年第一季度，我們是經紀公司——我們從經紀公司購買了大約 [23] 萬美元的商品，我們支付了 70% 的溢價，比方說，今年第一季度，同樣類型的東西，我們花費了大約一半那樣。顯然，這是一種節省。但更重要的是，如果你看看受到正在改善的短缺影響的收入，這對我來說更令人欣慰，因為它使我們的收入預測更加可預測，因為我們沒有 - 我們沒有錯過很多收入，因為我們沒有零件。

So there's improvements in the supply chain. We're seeing that. There's improvements in the premium that we're paying and also the fact that we're not going to miss as much revenue because we can't ship products because they're sitting on the shelf waiting for 1 or 2 parts.

因此，供應鏈有所改善。我們看到了。我們支付的保費有所提高，而且我們不會因為產品坐在貨架上等待 1 或 2 個零件而無法發貨而損失太多收入。

And next, we've got Guy Hardwick with Credit Suisse.

接下來，我們有來自瑞士信貸的 Guy Hardwick。

I think -- I think the previous guidance for at group level was a 50 basis points improvement in the adjusted margin. So you're now guiding to 40s. So what are the kind of the main parts of the change? And is it biased towards Digital Imaging?

我認為 - 我認為之前在集團層面的指導是調整後利潤率提高 50 個基點。所以你現在引導到 40 多歲。那麼變化的主要部分有哪些呢？它是否偏向數字成像？

Actually, what we have is the mixture. January, you're perfectly correct. We guided 50 basis points, and now we're guiding 40 basis points. We're taking some guidance down in instrumentation from January to today. We have over 100 basis points, we're closer to 80. Digital Imaging, we're taking down about 10 basis points all in. Aerospace and Defense, we're actually guiding -- we're guiding flat and we had it going down. And so that's good.

實際上，我們擁有的是混合物。一月，你完全正確。我們引導 50 個基點，現在我們引導 40 個基點。從 1 月到今天，我們正在減少一些儀器方面的指導。我們有超過 100 個基點，我們接近 80。數字成像，我們總共降低了大約 10 個基點。航空航天和國防，我們實際上正在指導 - 我們正在指導持平並且我們已經開始了向下。所以這很好。

And then in Engineered Systems, we have a moderate up, with a smaller business, but we still have a moderate 45 basis points or so up. So overall, I think we'd be at 40. Again, we hope to do better than that. And the way to do better than that is if we can stick some more price increases in our portfolio because inflation is moderating. Nevertheless, our wages are going up 4.5% to 5%. Our purchasing of direct and indirect goods is going up with inflation. And so we have to catch up a little more with price increases to make up for those in order to keep our -- be able to increase our margin. That's the kind of uncertain part.

然後在工程系統中，我們有一個適度的增長，業務規模較小，但我們仍然有 45 個基點左右的適度增長。所以總的來說，我認為我們會達到 40 歲。同樣，我們希望做得更好。做得更好的方法是，如果我們可以在我們的投資組合中堅持更多的價格上漲，因為通脹正在放緩。儘管如此，我們的工資還是上漲了 4.5% 到 5%。我們對直接和間接商品的購買隨著通貨膨脹而上升。因此，我們必須通過價格上漲來彌補這些，以保持我們的 - 能夠增加我們的利潤率。這就是不確定的部分。

How much can we gain from price increases? First quarter, we were okay. We made up what we paid out and we're a little positive actually. So the rest of the year, can we keep that pace of reasonable price increases to make up for inflation in both goods as well as wages.

我們能從漲價中獲利多少？第一季度，我們還好。我們彌補了我們付出的代價，實際上我們有點積極。因此，在今年餘下的時間裡，我們能否保持合理的價格上漲步伐，以彌補商品和工資的通脹。

And is the intention to be price cost neutral or do a little bit better than that? And then a second part...

是打算保持價格成本中立還是做得更好一點？然後是第二部分...

I'd like to do better than that for sure. Last year, we were negative by 60 basis points. This year, I hope to be positive.

我肯定想做得更好。去年，我們負了 60 個基點。今年，我希望是積極的。

And just to follow-up on the broker purchase. I believe that you said that it was $70 million incremental last year. What does your guidance imply in terms of lowering that $70 million in 2023?

並且只是為了跟進經紀人的購買。我相信你說去年增加了 7000 萬美元。就 2023 年減少 7000 萬美元而言，您的指導意味著什麼？

It's hard to tell at this point. But if I were to take the first quarter and projected out, I'd say, half.

在這一點上很難說。但如果我把第一季度預測出來，我會說，一半。

So potentially $35 million, -- $30 million to $40 million lower?

那麼可能會減少 3500 萬美元——減少 3000 萬到 4000 萬美元？

Yes, $35 million.

是的，3500 萬美元。

$35 million lower broker purchases?

經紀人購買量減少 3500 萬美元？

Yes, yes, approximately. Again, that's a moving target. So far, we've been successful as the semiconductor industry has gone down, as you can expect, the parts that were in shortage, some of them have become available. Some of them are the harder parts to get the FPGAs, et cetera, are still harder to get. So it's a mix shift. But things are improving, which makes me feel positive.

是的，是的，大約。同樣，這是一個移動的目標。到目前為止，隨著半導體行業的下滑，我們取得了成功，正如你所預料的那樣，短缺的部分，其中一些已經可用。其中一些是更難獲得 FPGA 的部分，等等，仍然更難獲得。所以這是一個混合轉變。但情況正在好轉，這讓我感到積極。

Okay. Just one final one for me. Is there any sort of mix effect either positive or negative in digital imaging in terms of the margin?

好的。對我來說只有最後一個。就邊距而言，數字成像中是否存在任何正面或負面的混合效應？

No, I don't believe so.

不，我不相信。

(Operator Instructions) We'll go now to Kristine Liwag with Morgan Stanley.

（操作員說明）我們現在將與摩根士丹利一起去 Kristine Liwag。

Robert, on the supply chain, I just want to follow up on the premiums paid to brokers for component sourcing. So you've talked about how that's declined. And is that because traditional sources have reopened and therefore, you're now sourcing less parts from these brokers? Or are you seeing more availability of parts and there's not as much of a scarcity and therefore, their premiums have declined. Can you provide more color on what's driving the dynamic there?

羅伯特，關於供應鏈，我只想跟進支付給經紀人的組件採購溢價。所以你已經談到了它是如何被拒絕的。是不是因為傳統來源已經重新開放，因此您現在從這些經紀人那裡採購的零件減少了？或者您是否看到更多可用零件並且沒有那麼稀缺，因此它們的保費下降了。你能提供更多有關驅動動態的顏色嗎？

Yes. What -- the big picture is that we're able to buy more from the OEMs than from brokers. We obviously prefer to buy from OEMs because the prices are stable. But it might be price increases versus last year. But brokers, you end up paying premiums of 70% to them. So that's the big picture. And the availability is improving. It's very interesting, just anecdotally, there have been a few brokers that have called us asking us if we want some of their parts.

是的。什麼 - 大局是我們能夠從原始設備製造商那裡購買比從經紀人那裡購買更多的東西。我們顯然更願意從原始設備製造商那裡購買，因為價格穩定。但這可能是與去年相比價格上漲。但是經紀人，你最終要向他們支付 70% 的保費。這就是大局。而且可用性正在提高。這非常有趣，有趣的是，有幾個經紀人打電話給我們，問我們是否想要他們的一些零件。

Last year, we were out there banging for parts. And obviously, if that were to happen, I look at that as they have some obsolete or some excess supply, and we're buying, but we'll buy them at a discount to what we pay to the OEMs. So the market is improving. I like that.

去年，我們在那裡尋找零件。顯然，如果發生這種情況，我認為他們有一些過時或供應過剩，我們正在購買，但我們會以低於我們支付給原始設備製造商的價格購買它們。所以市場正在好轉。我喜歡。

Great. And then you mentioned that you anticipate that you can pass on whatever inflation costs that you have into pricing, so that should be a net positive for you. But can you talk about the demand environment? What's been the customer sensitivity to pricing. And right now, if you look at the financial markets, we've had 2 regional bank failures last month, and there's more uncertainty today. Is that macro environment affecting your customers' decision for capital purchases or to have some sort of pricing sensitivity?

偉大的。然後你提到你預計你可以將任何通貨膨脹成本轉嫁到定價中，所以這對你來說應該是一個淨積極因素。但是你能談談需求環境嗎？客戶對定價的敏感度如何。現在，如果你看看金融市場，上個月我們有 2 家地區性銀行倒閉，而今天有更多的不確定性。該宏觀環境是否會影響您的客戶的資本購買決定或具有某種定價敏感性？

Yes. The answer to it is, yes. On the other hand, because within such a diverse market, if you look at some of our longer cycle businesses, as I mentioned, like Marine, energy dependent, some of our defense businesses others, they are not as price sensitive to what's happening in the financial market. Some of our shorter cycle businesses, yes. We have to be careful that we don't increase prices and lose to -- lose to the competition -- lose market share to the competition. But in some areas like health care, where we make x-ray panels that are very high resolution, very low dosage, There, we have pricing power. And so it's a mixture.

是的。答案是肯定的。另一方面，因為在如此多樣化的市場中，如果你看看我們的一些週期較長的業務，正如我提到的，像海洋、能源依賴、我們的一些國防業務等，它們對價格並不那麼敏感。金融市場。我們的一些較短週期的業務，是的。我們必須小心，不要提高價格並輸給——輸給競爭對手——輸給競爭對手的市場份額。但在醫療保健等某些領域，我們製造分辨率非常高、劑量非常低的 X 射線面板，在那裡，我們有定價權。所以它是一種混合物。

Overall, when I say uncertainty about the economic uncertainty, I'm speaking exactly to what you pointed out. Some of the uncertainty in the financial market that's shipping out into other markets as well.

總的來說，當我說經濟不確定性的不確定性時，我說的正是你所指出的。金融市場的一些不確定性也正波及其他市場。

Great. And if I could sneak a last one in. When you look at your overall portfolio, what percent of it would you say you have more pricing power versus what percent would have more pricing sensitivity?

偉大的。如果我能把最後一個偷偷放進去。當你看看你的整體投資組合時，你會說你有多少百分比的定價權，而有多少百分比的定價敏感度更高？

I think about 40% of our portfolio, we have more pricing power and 60% is more sensitive because the 60% in some ways, it depends on the global macro environment. As you may know, the way our portfolio has evolved, today, we sell about 22% to the government, 28% U.S. commercial and 50% commercial and defense outside the U.S. So the macro -- global macro environment is what we're more sensitive to a 40% not so.

我認為我們投資組合的 40%，我們有更多的定價權，而 60% 更敏感，因為 60% 在某些方面取決於全球宏觀環境。正如您所知，我們的投資組合演變的方式，今天，我們向政府出售約 22%，向美國商業出售 28%，向美國以外的商業和國防出售 50% 所以宏觀 - 全球宏觀環境是我們更重要的敏感了40%就不是這樣了。

And currently, we have no further questions in queue.

目前，我們沒有其他問題在排隊。

Thank you, Brad. I appreciate that. I'll now ask Jason to conclude our conference call.

謝謝你，布拉德。我很感激。我現在請 Jason 結束我們的電話會議。

Thanks, Robert, and thanks, everyone, for joining us this morning. Of course, if you have follow-up questions, please feel free to call me at the number on the earnings release or e-mail me for those who have my contact information. Brad, if you could give the replay information, we would greatly appreciate it. Thank you.

謝謝羅伯特，也謝謝大家今天早上加入我們。當然，如果您有後續問題，請隨時撥打收益發布上的電話號碼與我聯繫，或者如果知道我的聯繫信息，請給我發電子郵件。布拉德，如果你能提供重播信息，我們將不勝感激。謝謝。

Certainly. Thank you. Ladies and gentlemen, the conference will be available for replay after 10:00 today and running through May 26 at midnight. You can access the AT&T replay system at any time by dialing, (1866) 207-1041 and entering the access code (8989973). International parties may dial (402) 970-0847. Those numbers again (1866) 207-1041. International parties (402) 970-0847 with the access code 8989973.

當然。謝謝。女士們，先生們，會議將在今天 10:00 之後重播，一直持續到 5 月 26 日午夜。您可以隨時撥打 (1866) 207-1041 並輸入訪問代碼 (8989973) 訪問 AT&T 重放系統。國際當事人可撥打 (402) 970-0847。這些數字又是 (1866) 207-1041。國際當事人 (402) 970-0847，訪問代碼為 8989973。

That does conclude our call for the today. Thanks for your participation and for using AT&T Teleconference. You may now disconnect.

這確實結束了我們對今天的呼籲。感謝您的參與和使用 AT&T 電話會議。您現在可以斷開連接。