Thermon Group Holdings Inc (THR) 2021 Q4 法說會逐字稿

Greetings, ladies and gentlemen, and welcome to the Thermon Group Holdings Fourth Quarter 2021 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded.

女士們、先生們，大家好，歡迎參加賽盟集團控股 2021 年第四季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to our host, Kevin Fox, Chief Financial Officer. Thank you. You may begin.

現在我將會議交給我們的東道主、財務長凱文福克斯。謝謝。你可以開始了。

Thank you, Diego. Good morning, and thank you for joining today's fiscal 2021 fourth quarter conference call. Earlier this morning, we issued an earnings press release, which has been filed with SEC on Form 8-K and is also available on the Investor Relations section of our website. We have also updated our investor presentation, which includes a summary of our ESG achievements in fiscal '21.

謝謝你，迭戈。早上好，感謝您參加今天的 2021 財年第四季電話會議。今天早些時候，我們發布了一份收益新聞稿，該新聞稿已以 8-K 表格的形式向 SEC 提交，也可在我們網站的投資者關係部分取得。我們也更新了投資者演示文稿，其中包括 21 財年 ESG 成就的摘要。

During the call, we will discuss some items that do not conform to generally accepted accounting principles. We have reconciled those items to the most comparable GAAP measures in the tables at the end of the earnings press release. These non-GAAP measures should be considered in addition to and not as a substitute for measures of financial performance reported in accordance with GAAP.

在電話會議期間，我們將討論一些不符合公認會計原則的項目。我們已將這些項目與收益新聞稿末尾表格中最具可比性的公認會計準則衡量標準進行了核對。這些非公認會計原則衡量標準應作為根據公認會計原則報告的財務績效衡量標準的補充，而不是替代。

I'd like to remind you that during this call, we may make certain forward-looking statements regarding our company. Please refer to our annual report and most recent quarterly report filed with the SEC for more information regarding our forward-looking statements, including the risks and uncertainties that could impact our future results. Our actual results may differ materially from those contemplated by these forward-looking statements, and we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise, except as may be required by law.

我想提醒您，在這次電話會議中，我們可能會做出一些關於我們公司的前瞻性陳述。請參閱我們向美國證券交易委員會提交的年度報告和最近的季度報告，以了解有關我們前瞻性聲明的更多信息，包括可能影響我們未來業績的風險和不確定性。我們的實際結果可能與這些前瞻性陳述預期的結果有重大差異，我們沒有義務公開更新任何前瞻性陳述，無論是由於新資訊、未來發展或其他原因，除非法律要求。

With that, we will turn to the opening comments from Bruce Thames, our President and Chief Executive Officer.

接下來，我們將聽取我們的總裁兼執行長 Bruce Thames 的開場白。

Thank you, Kevin, and good morning. We hope everyone listening is staying safe and in good health. We appreciate you joining our conference call and for your interest in Thermon. Kevin Fox, our new CFO, is here to provide additional information on our Q4 and full year financial performance following my remarks.

謝謝你，凱文，早安。我們希望聆聽的每個人都保持安全和健康。我們感謝您參加我們的電話會議以及您對賽盟的興趣。在我發表講話後，我們的新任財務長凱文福克斯 (Kevin Fox) 在此提供有關我們第四季度和全年財務業績的更多資訊。

I'd like to take a few moments to reflect on a very challenging year in fiscal 2021. As the year began, the world and the global economy were faced with the worst pandemic in 100 years, and, by far, the worst demand destruction in the history of the oil industry. Despite the challenges, I have been impressed with how this team has responded to every obstacle. They kept the health and safety of our employees and customers as the top priority, and were successful in that endeavor.

我想花點時間回顧一下 2021 財年極具挑戰性的一年。新年伊始，世界和全球經濟面臨著 100 年來最嚴重的流行病，以及迄今為止最嚴重的需求破壞在石油工業史上。儘管面臨挑戰，但這個團隊應對每一個障礙的方式給我留下了深刻的印象。他們將員工和客戶的健康和安全放在首位，並在這一方面取得了成功。

In addition to having no workforce transmissions of the virus, we had 0 recordable and lost time incidents in the fiscal year, which is among the best in the industry. In addition, the team was laser-focused on value preservation, while serving our customers and exemplifying our core values of care, commit and collaborate. The team was able to restructure the business and reduce SG&A costs by $22 million in the year, of which we believe 80% is structural, while driving continuous improvements to achieve an additional $3.8 million in savings in our manufacturing operations.

除了沒有員工發生病毒傳播外，本財年我們還發生了 0 起可記錄事件和誤工事件，這在業界名列前茅。此外，團隊高度關注價值保存，同時為我們的客戶提供服務並體現我們關懷、承諾和協作的核心價值。團隊在這一年實現了業務重組，並將 SG&A 成本減少了 2,200 萬美元，我們認為其中 80% 是結構性的，同時推動持續改進，在製造業務中額外節省了 380 萬美元。

Finally, the team remained focused on strategically positioning the business for future success. In the year, we drove globalization of our process and environmental heating product lines and a heightened focus on capitalizing on the installed base of high-value MRO/UE revenue opportunities. We also launched 9 new products ranging from the Genesis network, a wireless, self-healing mesh network and supervisory software, to new trace heating solutions that push the envelope of performance in the industry.

最後，團隊仍專注於對業務進行策略定位，以實現未來的成功。這一年，我們推動了製程和環境供熱產品線的全球化，並更加重視利用高價值 MRO/UE 收入機會的安裝基礎。我們也推出了 9 款新產品，從 Genesis 網路（一種無線自癒網狀網路和監控軟體）到突破產業效能極限的新型伴熱解決方案。

Last but not least, we revisit our strategy in light of the major global shifts underway to capitalize on 3 key opportunities: developing markets, in-market diversification and technology-enabled maintenance. We believe these and the electrification of the industry will drive growth opportunities for this business now and in the years to come.

最後但並非最不重要的一點是，我們根據全球正在發生的重大轉變重新審視我們的策略，以利用三個關鍵機會：發展中市場、市場多元化和技術支援的維護。我們相信這些以及行業的電氣化將為該業務現在和未來幾年帶來成長機會。

I would like to thank the entire Thermon team around the globe for adeptly balancing the immediacy of the pandemic and industry downturn with long-term value creation while putting safety and customers first.

我要感謝全球賽盟團隊在將安全和客戶放在第一位的同時，巧妙地平衡了疫情和行業低迷的緊迫性與長期價值創造。

Turning now to the full year results. We finished the year with Q4 revenues in line with expectations to deliver $276 million in FY '21 revenue, a 28% decline from fiscal year '20. While underlying operating performance was solid in the quarter, there were a number of unusual items that impacted both cost of goods sold and SG&A, resulting in EBITDA margins that fell below expectations. Kevin will provide more details on these items later in the call.

現在轉向全年業績。我們今年第四季的營收符合預期，21 財年的營收為 2.76 億美元，比 20 財年下降了 28%。雖然本季的基本營運表現穩健，但有許多不尋常的項目影響了銷售成本和銷售管理費用，導致 EBITDA 利潤率低於預期。凱文稍後將在電話會議中提供有關這些項目的更多詳細資訊。

As a result, adjusted EBITDA of $37 million fell below expectations for the full year, down 43.2% from prior year. Decisive actions to manage costs help offset the negative impact of the decline in end markets. Throughout the year, the business continued to generate cash with $22.5 million in cash flow in the fiscal year, paying down $27.5 million in debt during the year. Full year adjusted EPS of $0.34 a share was down 55% from fiscal year '20.

因此，全年調整後 EBITDA 為 3,700 萬美元，低於預期，較前一年下降 43.2%。管理成本的果斷行動有助於抵消終端市場下滑的負面影響。全年，該業務繼續產生現金，本財年現金流量為 2,250 萬美元，年內償還了 2,750 萬美元的債務。全年調整後每股收益為 0.34 美元，較 20 財年下降 55%。

Turning now to a discussion of our end markets. We are beginning to see some signs of improvements in our end markets that are calls for cautious optimism. While we have not yet returned to pre-COVID levels of activity, we continue to see sequential improvements in maintenance spending that are above and beyond normal seasonality despite the lockdowns that occurred in January as variants caused a resurgence in cases.

現在轉向我們的終端市場的討論。我們開始看到終端市場出現一些改善跡象，需要謹慎樂觀。雖然我們尚未恢復到新冠疫情前的活動水平，但我們繼續看到維護支出的連續改善，超出了正常的季節性，儘管 1 月份因病毒變異導致病例死灰復燃而實施了封鎖。

As we look to the chart on Page 4 of the presentation, you can see that greater than 55% of our end markets are tied to chemical, petrochemical, natural gas and power. With natural gas as a bridge fuel and the linkage of chemical, petrochemical and power markets to the emergence of the middle class in developing economies, that the growth outlook across these sectors is much more robust than upstream oil, which now represents just 16% of our revenues.

當我們查看簡報第 4 頁的圖表時，您可以看到我們超過 55% 的終端市場與化學品、石化、天然氣和電力有關。由於天然氣作為橋樑燃料，以及化學、石化和電力市場與發展中經濟體中產階級的崛起之間的聯繫，這些產業的成長前景比上游石油更為強勁，而上游石油目前僅佔全球經濟的16% 。我們的收入。

With numerous projects in various stages of planning and execution, we are well positioned to capitalize on a shift to biofuels as evidenced by a recent award for a biodiesel plant on the Gulf Coast. In addition, we see significant opportunities in more diverse end markets with favorable growth potential, such as rail and transit, commercial, and food and beverage in the coming years. A couple of examples include a recent award for environmental heating in a copper mine in Eurasia and an award for cab heating on a sizable transit project here in the U.S.

由於眾多項目處於規劃和執行的不同階段，我們處於有利地位，可以利用向生物燃料的轉變，最近墨西哥灣沿岸一家生物柴油工廠的獲獎證明了這一點。此外，我們還看到了未來幾年具有良好成長潛力的更多元化的終端市場的巨大機遇，例如鐵路和交通、商業以及食品和飲料。幾個例子包括最近獲得的歐亞大陸銅礦環境供暖獎項以及美國一個大型交通項目的駕駛室供暖獎項。

Moving on to Slide 5 of the presentation. While orders were down 15% in the quarter from the prior year period and 22% on a trailing 12-month basis, the book-to-bill for the period was 1.05x, with backlog growing 8% year-over-year. While orders have not yet shown growth over the prior year period, we are seeing positive signs in our end markets with increased maintenance activity later in the quarter, driven by commodity price increases, relaxed restrictions enabling access to customer facilities, and the need to maintain critical assets.

繼續簡報的投影片 5。雖然本季訂單量較去年同期下降 15%，較過去 12 個月下降 22%，但該期間的訂單出貨比為 1.05 倍，積壓訂單年增 8%。雖然訂單尚未顯示出較上年同期增長的跡象，但我們在終端市場看到了積極的跡象，在大宗商品價格上漲、允許進入客戶設施的限制放鬆以及維護的需要的推動下，本季度晚些時候的維護活動增加。關鍵資產。

We also believe that winter storm Uri will create opportunities in Texas and along the Gulf Coast as customers in the power and natural gas sectors winterize their assets in advance of the next winter heating season. Based upon these factors, we anticipate order growth in Q1 of fiscal year '22 over the prior year period.

我們也相信，冬季風暴烏裡將為德州和墨西哥灣沿岸創造機會，因為電力和天然氣行業的客戶將在下一個冬季供暖季節之前對其資產進行防凍。基於這些因素，我們預計 22 財年第一季的訂單將比去年同期成長。

I would like to now hand it over to Kevin Fox, our CFO, to provide a more detailed review of the quarter and year financial results.

我現在想將其交給我們的財務長凱文福克斯 (Kevin Fox)，他對季度和年度財務業績進行更詳細的審查。

Thanks, Bruce. Revenue in the fourth quarter was $73.3 million, a decrease of 17% versus the previous year. We had guided a $69 million to $76 million range on our previous call, and we came in right in the middle of the range. FX was a minor tailwind, about $1.5 million, with revenues down 19% on a constant currency basis.

謝謝，布魯斯。第四季營收為 7,330 萬美元，比上年下降 17%。我們在之前的電話會議中指導了 6900 萬美元至 7600 萬美元的範圍，而我們正好處於該範圍的中間。外匯是一個小推動因素，約 150 萬美元，以固定匯率計算，收入下降了 19%。

From a regional perspective, EMEA was the only region with year-over-year growth, primarily due to the continued execution on multiple large projects with all other regions contracting in the period. Pricing continues to be positive with our quick turn margins up year-over-year. On a trailing 12-month basis, Thermon revenue was down 28%, with FX only 0.5 point headwind for the full year. EMEA was flat. The USLAM region was down 39% year-over-year, with Canada and APAC down 29% and 22%, respectively.

從區域角度來看，歐洲、中東和非洲是唯一同比增長的區域，這主要是由於多個大型項目的持續執行，而所有其他區域在此期間都出現收縮。隨著我們的利潤率逐年快速增長，定價繼續保持積極。在過去 12 個月的基礎上，Thermon 的收入下降了 28%，全年的外匯阻力只有 0.5 個百分點。歐洲、中東和非洲地區持平。 USLAM 地區年減 39%，其中加拿大和亞太地區分別下降 29% 和 22%。

As we think about progression through the year, we were down 37% in the first half and down 19% in the second half. While fiscal '21 was a difficult year due to the combination of the COVID-19 pandemic and disruptions to the oil and gas markets, we've seen an inflection during recent months. TTM bookings showed a positive year-over-year growth for the first time in March, and global orders in the first 6 weeks of the new quarter are trending positively across the board. Maintenance spending appears to be increasing as facility access restrictions are easing, particularly in the Western Hemisphere.

當我們考慮全年的進度時，我們上半年下降了 37%，下半年下降了 19%。雖然由於 COVID-19 大流行以及石油和天然氣市場的干擾，21 財年是困難的一年，但我們在最近幾個月看到了變化。 3月TTM預訂量首次出現年比正成長，新季前6週的全球訂單全面呈正成長趨勢。隨著設施准入限制的放鬆，維護支出似乎正在增加，特別是在西半球。

Margins came in at 37.1% in the quarter, with a few specific items to call out. First, we've had to increase our estimated expenses related to an operational execution item in a non-U.S. project, which accounted for $3.3 million of incremental expense in the period. We also incurred $0.5 million of productivity losses due to winter storm Uri as our employees and operations in San Marcos, Texas, were impacted by the power outages in February. When adjusting for these items, margins would have been 42.4% versus a Q4 2020 apples-to-apples comparison of 44.7%, a decline of 230 basis points.

本季利潤率為 37.1%，有一些具體項目值得關注。首先，我們不得不增加與非美國項目中的營運執行項目相關的估計費用，該費用佔該期間增量費用 330 萬美元。由於冬季風暴 Uri，我們在德克薩斯州聖馬科斯的員工和營運受到 2 月停電的影響，因此我們也遭受了 50 萬美元的生產力損失。在這些項目進行調整後，利潤率為 42.4%，而 2020 年第四季的同類比較為 44.7%，下降了 230 個基點。

When we start to analyze the business from that position, we have a few additional observations within the quarter. Manufacturing variances due to the rapid inventory reduction in Q4 and other expenses were approximately a 260 basis point headwind. Accounting for that negative impact gets us to our historical average margins of 45%, but we have yet to account for mix.

當我們開始從這個角度分析業務時，我們在本季度得到了一些額外的觀察。由於第四季庫存快速減少和其他費用造成的製造差異約為 260 個基點。考慮到這種負面影響，我們的歷史平均利潤率為 45%，但我們尚未考慮到混合因素。

While the mix of MRO/UE versus greenfield in our legacy business was 67% versus 33%, a notch above the traditional 60-40 split, the greenfield margins were a slight headwind in the quarter due to the timing of some larger projects being executed. MRO/UE margins are slightly above historical averages, but not enough to offset the weaker performance in greenfield. As I mentioned earlier, pricing was up in the quarter, and we're closely watching price versus cost appears to be gaining momentum.

雖然我們傳統業務中的MRO/UE 與新建業務的比例為67% 與33%，比傳統的60-40 比例高出一個檔次，但由於一些大型項目執行的時間安排，本季度新建業務的利潤率略有下降。 MRO/UE 利潤率略高於歷史平均水平，但不足以抵消新建項目的疲軟表現。正如我之前提到的，本季定價有所上漲，我們正在密切關注價格與成本的關係似乎正在增強。

Margins in our backlog were 33.6% at the end of March, which is about 190 basis points above the average of the previous 5 quarters. As a reminder, we had a target of $3.9 million from continuous improvement in the year, and we delivered $3.8 million. We expect continuous improvement initiatives to contribute approximately $2 million in fiscal '22.

截至 3 月底，我們的積壓訂單利潤率為 33.6%，比前 5 個季度的平均值高出約 190 個基點。提醒一下，我們今年的持續改善目標是 390 萬美元，我們交付了 380 萬美元。我們預計持續改善措施將在 22 財年貢獻約 200 萬美元。

Moving to the next slide and a quick discussion on SG&A. First, we start with the marketing, general and administrative and engineering expenses from our SEC reported figures and then we back out depreciation as well as any expense or benefit from the nonqualified deferred compensation line. In Q4 '21, SG&A by that definition was $20.6 million, a reduction of $6.2 million from the comparison period. On a run rate basis, we believe SG&A will be around $20 million per quarter as we had a number of nonrecurring items that cumulatively impacted our reported Q4 '21 results by $2 million, the largest of which was bad debt reserves of $0.7 million related to a specific customer. Other items were related to various immaterial costs with none being larger than $250,000 individually.

轉到下一張投影片，快速討論 SG&A。首先，我們從美國證券交易委員會報告的數據中的行銷、一般、行政和工程費用開始，然後我們從不合格的遞延補償線中扣除折舊以及任何費用或收益。 21 年第 4 季度，根據該定義，SG&A 為 2,060 萬美元，比比較期間減少了 620 萬美元。在運行率的基礎上，我們認為每季的SG&A 約為2000 萬美元，因為我們有許多非經常性項目，這些項目累計對我們報告的21 年第4 季業績產生了200 萬美元的影響，其中最大的是與以下相關的壞帳準備金：70 萬美元特定客戶。其他項目與各種非物質成本有關，其中每一項都不超過 25 萬美元。

On a TTM basis, you can see the cost out execution in fiscal '21 of approximately $22 million which excludes $8.6 million of total restructuring. We expect temporary cost reductions to come back in the P&L through the year, primarily driven by more travel as economies reopen and an expected increase of short-term incentive compensation. Those increases will be offset by the full year impact of previous restructuring actions.

以 TTM 為基礎，您可以看到 21 財年的執行成本約為 2,200 萬美元，其中不包括 860 萬美元的重組總額。我們預計全年損益表中將出現臨時成本下降，這主要是由於經濟重新開放帶來的旅行增加以及短期激勵薪酬的預期增加所推動。這些增長將被先前重組行動對全年的影響所抵消。

Adjusted EBITDA is on the right side of the page, with Q4 '21 coming in at $6.2 million or 8% of sales, and the full year result of $36.6 million or 13.2% of sales. Ultimately, it's a disappointing result despite our collective response and effort to manage through the challenges of the last year. However, we continue to believe the business will generate gross margins at or above our historical average. And with the changes to cost structure over the last year, we have significantly improved our operating position. That combination will drive adjusted EBITDA growth in the coming quarters, even under a scenario where customer spending takes longer to return to pre-pandemic levels.

調整後的 EBITDA 位於頁面右側，21 年第 4 季的營收為 620 萬美元，佔銷售額的 8%，全年業績為 3,660 萬美元，佔銷售額的 13.2%。最終，儘管我們做出了集體反應並努力應對去年的挑戰，但結果仍然令人失望。然而，我們仍然相信該業務的毛利率將達到或高於我們的歷史平均值。隨著去年成本結構的變化，我們的經營狀況也得到了顯著改善。即使在客戶支出需要更長的時間才能恢復到疫情前水準的情況下，這種組合也將推動未來幾季調整後 EBITDA 的成長。

Not on the page, but we wanted to highlight GAAP EPS was negative $0.02 per share in the quarter with adjusted EPS of $0.03 per share. On a full year basis, fully diluted GAAP EPS was $0.03 per share with fiscal '21 adjusted EPS of $0.36 per share. Reconciliation tables were provided in the press release for reference.

頁面上沒有，但我們想強調本季 GAAP 每股收益為負 0.02 美元，調整後每股收益為 0.03 美元。以全年計算，完全攤薄後的 GAAP 每股收益為 0.03 美元，21 財年調整後每股收益為 0.36 美元。新聞稿中提供了調節表以供參考。

Next slide. We had previously commented around opportunities to improve our balance sheet and working capital management, and Q4 '21 saw a significant reduction in our inventory on a sequential basis. While the inventory balance is up 6% year-over-year and driving the overall increase in working capital, inventory is down $10 million since Q3. As a reminder, we generally build inventory in advance of the heating season, so we would expect this to increase slightly in coming quarters before again reducing in the second half of the year.

下一張投影片。我們之前曾評論過改善資產負債表和營運資金管理的機會，21 年第 4 季我們的庫存較上季大幅減少。儘管庫存餘額年增 6%，推動了營運資金的整體成長，但自第三季以來庫存減少了 1,000 萬美元。提醒一下，我們通常會在供暖季節之前建立庫存，因此我們預計未來幾季庫存會小幅增加，然後在下半年再次減少。

Total debt was down $27.5 million in the year to $148.5 million, driven by the organic cash flow generation inherent in our asset-light business model. We completed $20 million of incremental paydown in Q4. Net debt to adjusted EBITDA finished at 3x. So although we were able to reduce our debt balance, the adjusted EBITDA decline kept that ratio flat to Q3. We expect the business to continue to delever in fiscal '22 as the recovery takes hold but we will also have the benefit of some low comp periods early in the new fiscal year.

在我們輕資產業務模式固有的有機現金流產生的推動下，當年總債務減少了 2,750 萬美元，達到 1.485 億美元。我們在第四季完成了 2000 萬美元的增量付款。淨債務與調整後 EBITDA 比率為 3 倍。因此，儘管我們能夠減少債務餘額，但調整後的 EBITDA 下降使該比率與第三季持平。我們預計，隨著經濟復甦，該業務將在 22 財年繼續去槓桿化，但我們也將受益於新財年初期的一些低競爭時期。

CapEx was $7.8 million, which includes a $4 million budgeted cut that was offset by some investment in our temporary power rental fleet to be prepared for turnaround demand, particularly in Canada during the 2021 calendar year. We continue to monitor potential M&A opportunities but would likely look for a reduction in our leverage ratio before taking any action. Therefore, optional debt paydown remains the top capital allocation priority. We still have $40 million of cash on hand and could potentially see that number decrease in coming quarters.

資本支出為 780 萬美元，其中包括 400 萬美元的預算削減，這被我們為應對週轉需求（特別是 2021 年加拿大的周轉需求）而對臨時電力租賃車隊進行的一些投資所抵消。我們將繼續監控潛在的併購機會，但在採取任何行動之前可能會尋求降低槓桿率。因此，可選的債務償還仍然是資本配置的首要任務。我們手頭上仍有 4000 萬美元現金，並且在未來幾季中這一數字可能會減少。

A quick note on taxes. The tax rate in the quarter was impacted by the pretax operating loss, which also enabled us to carry back previous losses in the U.S. region. This, along with the impact of the GILTI tax rules, impacted our full year results for a net tax benefit of $1.4 million. Going forward, we expect the effective tax rate to continue to be around 27% in fiscal '22.

關於稅收的快速說明。本季的稅率受到稅前營業虧損的影響，這也使我們能夠彌補先前在美國地區的虧損。這加上 GILTI 稅收規則的影響，影響了我們全年的業績，淨稅收收益為 140 萬美元。展望未來，我們預計 22 財年的有效稅率將繼續維持在 27% 左右。

Before I hand it over to Bruce to present an update on strategy and '22 guidance, I wanted to provide some perspective on the first few months in the new role. While our end markets continue to be impacted by COVID, we are cautiously optimistic on fiscal '22. Book-to-bill is positive, maintenance spending is starting to return. Our new product development process is accelerating, and we have a sustainable cost structure that will drive operating leverage as volume recovers.

在我將其交給 Bruce 介紹戰略和 22 年指導的最新情況之前，我想就擔任新職位的頭幾個月提供一些看法。雖然我們的終端市場繼續受到新冠疫情的影響，但我們對 22 財年持謹慎樂觀態度。訂單出貨情況良好，維護支出開始恢復。我們的新產品開發進程正在加速，我們擁有可持續的成本結構，隨著產量的恢復，這將推動營運槓桿。

While there were a lot of moving parts this year and especially in Q4, our balance sheet is strong, and we continue to generate cash as a result of our attractive gross margins and asset-light business model. My colleagues across the world are passionate and committed to achieving our goals and have challenged the teams to simplify, automate and focus on what we can control.

儘管今年（尤其是第四季）有很多變化，但我們的資產負債表強勁，並且由於我們具有吸引力的毛利率和輕資產業務模式，我們繼續產生現金。我在世界各地的同事都充滿熱情並致力於實現我們的目標，並要求團隊簡化、自動化並專注於我們可以控制的事情。

It has been a difficult year for all, but we adapted quickly to the many changes, both externally and internally that we encountered. We enter the year with a renewed energy to execute on the plan for fiscal '22. The leadership team remains focused on driving long-term growth in attractive sustainable markets, improving profitability and increasing returns on our investors' capital.

對所有人來說，這是艱難的一年，但我們很快就適應了所遇到的許多外部和內部變化。我們以新的活力進入新的一年，以執行 22 財年的計劃。領導團隊仍專注於推動有吸引力的永續市場的長期成長，提高獲利能力並增加投資者的資本回報。

Bruce, with that, I'll turn it back to you for an update on strategy.

布魯斯，這樣，我會將其轉回給您以獲取策略更新。

All right. Thank you, Kevin. If you'll turn now to the strategy update slide. Moving on to Slide 5 in the -- or excuse me, in the presentation. It's Slide 9 from the presentation. Thank you, Kevin.

好的。謝謝你，凱文。現在請看策略更新投影片。繼續看簡報中的投影片 5——或者對不起，在簡報中。這是簡報中的幻燈片 9。謝謝你，凱文。

Since 2015 downturn in the energy sector, this team has worked to successfully reposition Thermon to capitalize on growing demand for chemicals and petrochemicals. With the recent events and the shift towards decarbonization, the Board and management have revisited our strategy to capitalize on some of the transitions underway. Our focus has been on using technology to effectively mine the existing installed base, while looking for new geographies and markets to replicate the model of growing the installed base to capitalize on high-value recurring revenue streams.

自 2015 年能源產業低迷以來，該團隊致力於成功地重新定位 Thermon，以利用對化學品和石化產品不斷增長的需求。隨著最近發生的事件和向脫碳的轉變，董事會和管理層重新審視了我們的策略，以利用正在進行的一些轉型。我們的重點是利用技術有效地挖掘現有的安裝基礎，同時尋找新的地區和市場來複製增加安裝基礎的模式，以利用高價值的經常性收入流。

From these efforts, Thermon is highly focused on the electrification of industry that is underway, which we believe will accelerate the transition from steam and reduce on-site natural gas heating in many applications. We see growth in developing markets, particularly in the Eastern Hemisphere as one of the significant opportunities for expansion going forward.

透過這些努力，賽盟高度關注正在進行的工業電氣化，我們相信這將加速從蒸汽的過渡，並減少許多應用中的現場天然氣加熱。我們認為發展中市場的成長，特別是東半球的成長，是未來擴張的重要機會之一。

The emerging middle class in India, China and other Asian countries creates growing demand for our solutions in our traditional markets for chemical, petrochemical and power. Diversification of our end markets is the second area identified as a significant driver for growth going forward. We are targeting growing other segments of our business such that less than 40% of revenues are generated from oil and gas by the end of fiscal 2026. Thermon has participated in many of these diversified end markets historically, but more on an opportunistic basis.

印度、中國和其他亞洲國家的新興中產階級對我們傳統的化學、石化和電力市場的解決方案的需求不斷增長。我們終端市場的多元化是被認定為未來成長重要驅動力的第二個領域。我們的目標是發展其他業務領域，到 2026 財年末，石油和天然氣產生的收入將低於 40%。賽盟歷史上曾參與過許多此類多元化終端市場，但更多的是機會主義的。

With the expansion of the portfolio to include process and environmental heating, and an increased direct sales and channel focus, many of these sectors represent significantly greater overall opportunity. The shift to renewable energy sources such as biofuels, concentrated solar power and wind power, all represent opportunities for growth. Examples of other sectors with promising growth that we have touched historically include commercial, rail and transit as well as food and beverage.

隨著產品組合的擴展，包括工藝和環境加熱，以及直接銷售和通路重點的增加，其中許多行業代表了顯著更大的整體機會。向生物燃料、聚光太陽能和風能等再生能源的轉變都代表著成長機會。我們歷史上接觸過的其他有希望成長的行業包括商業、鐵路和交通以及食品和飲料。

The third area identified is technology-enabled maintenance. We remain committed to investments in new product development that include connected and smart control solutions, advanced heating technologies and material science. Even with the recent downturn in customer demand, we maintained our proven strategy to invest through the cycle and spent 2.7% of revenue on R&D.

確定的第三個領域是技術支援的維護。我們仍然致力於投資新產品開發，包括互聯和智慧控制解決方案、先進的加熱技術和材料科學。即使最近客戶需求低迷，我們仍保持行之有效的整個週期投資策略，並將營收的 2.7% 用於研發。

One of our 9 product launches last year, the Genesis Network enables customers to improve safety and reliability while reducing total cost of ownership. With IIoT capabilities, the new Genesis platform creates opportunities for recurring revenues from software as well as troubleshooting and predictive maintenance. All of these solutions further strengthen the relationship with our end customers and improve our abilities to capture recurring revenues from the installed base.

Genesis Network 是我們去年推出的 9 款產品之一，它使客戶能夠提高安全性和可靠性，同時降低整體擁有成本。憑藉 IIoT 功能，新的 Genesis 平台為軟體、故障排除和預測性維護創造了經常性收入的機會。所有這些解決方案進一步加強了我們與最終客戶的關係，並提高了我們從安裝基礎中獲取經常性收入的能力。

Turning now to Slide 10 on guidance for fiscal '22. Going forward, we maintain a laser focus on driving operational improvements to positively impact the overall profitability of the business. We're committed to delivering $2 million in cost savings through continuous improvement, while holding the line on SG&A expenses in the year.

現在轉向關於 22 財年指導的幻燈片 10。展望未來，我們將繼續專注於推動營運改進，以對業務的整體獲利能力產生正面影響。我們致力於透過持續改善實現 200 萬美元的成本節約，同時控制年內的 SG&A 費用。

We anticipate the cost savings, combined with price increases, will more than offset any inflationary increases to drive meaningful EBITDA margin expansion in the year. We also remain committed to and are investing in our strategic initiatives to drive growth in the business going forward. With a strong pipeline of new solutions, our commitment to new product development and commercialization remains steadfast with an approximate 2.7% of revenues dedicated to these efforts in the fiscal year.

我們預計，成本節約加上價格上漲將足以抵消任何通貨膨脹的成長，從而推動今年的 EBITDA 利潤率大幅成長。我們也持續致力於並投資我們的策略舉措，以推動未來業務的成長。憑藉強大的新解決方案管道，我們對新產品開發和商業化的承諾依然堅定，本財年約有 2.7% 的收入專門用於這些工作。

While a level of uncertainty in the current environment remains, we are reinstating revenue guidance for fiscal '22 to a range of $278 million to $295 million for the full year.

儘管當前環境仍存在一定程度的不確定性，但我們將 22 財年的全年營收指引恢復至 2.78 億至 2.95 億美元之間。

In conclusion, I do not believe this quarter's results are representative of the underlying strength of our business model, nor does it change our expectations for fiscal year '22. When the unusual expenses in the quarter are isolated, the underlying profitability and cash flow are more consistent with our historic performance. We expect the work done in fiscal year '21 will generate operating leverage and show significant improvements in financial performance in fiscal year '22. We have a talented team that remains committed to serving our customers and creating long-term value for our shareholders.

總之，我不認為本季的業績代表了我們業務模式的潛在優勢，也不會改變我們對 22 財年的預期。當該季度的異常費用被孤立時，潛在的獲利能力和現金流與我們的歷史業績更加一致。我們預計第 21 財年完成的工作將產生營運槓桿，並在第 22 財年顯示財務表現的顯著改善。我們擁有一支才華橫溢的團隊，始終致力於服務客戶並為股東創造長期價值。

By focusing on our operational and strategic initiatives, Thermon is well positioned to merge a stronger, more profitable business as our customers and end markets emerge from this pandemic.

透過專注於我們的營運和策略舉措，隨著我們的客戶和終端市場擺脫這場大流行，賽盟已做好了合併更強大、更有利可圖的業務的準備。

I'd like to pause now and turn it back over to Diego for the Q&A portion of our call.

我現在想暫停一下，然後將其轉回迭戈以進行電話問答部分。

(Operator Instructions) Our first question comes from Scott Graham with Rosenblatt Securities.

（操作員指示）我們的第一個問題來自羅森布拉特證券公司的斯科特·格雷厄姆（Scott Graham）。

So I was -- I was hoping that you guys would be able to unbundle a little bit more, the $5.8 million of unusual items here. And in particular, the $3.3 million hit on execution, which is -- it's obviously a really big number. And kind of maybe help us understand why it happened and what you're doing to avoid that from happening, going forward? Or is that just really an isolated situation, but, even still, it was large? Just shed some light on the $5.8 million, in particular, the $3.3 million.

所以我 - 我希望你們能夠將這裡價值 580 萬美元的不尋常物品進一步拆解。特別是，執行費用高達 330 萬美元，這顯然是一個非常大的數字。也許可以幫助我們理解為什麼會發生這種情況，以及您未來正在採取哪些措施來避免這種情況發生？或者這只是一個孤立的情況，但即使如此，它仍然很大？剛剛簡單介紹了 580 萬美元，特別是 330 萬美元。

Yes. I'll -- Scott, this is Bruce. I'll jump in on the $3.3 million. We had a very large time and material contract that we had in -- it was outside of the U.S. And essentially, we had a warranty rework that had to be done during the winter months, during COVID protocols, which drove some exceptional expenses. It's unusual, and it is -- it's a onetime, isolated project, and we do not foresee this recurring going forward.

是的。我會——史考特，這是布魯斯。我將投入 330 萬美元。我們簽訂了一份非常大的時間和材料合約——它是在美國境外。本質上，我們必須在冬季的幾個月裡、在新冠肺炎協議期間進行保固返工，這導致了一些額外的費用。這很不尋常，而且確實是——這是一個一次性的、孤立的項目，我們預計這種情況今後不會重複發生。

Kevin, if you want to just maybe touch on some of the other items in that $5.8 million?

Kevin，您是否想談談這 580 萬美元中的其他一些項目？

Yes. And Scott, for the residual, you've got the impact of the winter storm in there that was $0.5 million. The bad debt reserve for a specific customer, we're back-to-back there. They're in EPC in the EMEA region, but ultimately felt like it was appropriate to reserve for that at this point in time. And then really with the rest of the items in SG&A, just a lot of little things, whether it's timing, whether it's certain things getting resolved, which is the right time to take those into the P&L.

是的。 Scott，對於剩餘部分，冬季風暴的影響為 50 萬美元。對於特定客戶的壞帳準備金，我們是背對背的。他們位於 EMEA 地區的 EPC，但最終認為此時為此預留是合適的。然後，實際上，SG＆A 中的其餘項目，只是很多小事情，無論是時間安排，是否某些事情得到解決，這是將這些納入損益表的正確時機。

So as I mentioned, individually, none of them were greater than $250,000, but really just accumulation of a few things happening here at the end of the quarter. So we look at those expenses as unusual, time limited. And I think as we look forward in the business, we certainly expect things to get back to a more normal stabilized performance here in the (technical difficulty)

正如我所提到的，單獨來看，它們都不超過 25 萬美元，但實際上只是本季末發生的一些事情的累積。因此，我們認為這些費用是不尋常的、時間有限的。我認為，當我們展望業務時，我們當然希望事情能夠在（技術難度）方面恢復到更正常的穩定表現

Scott, are you still with us?

史考特，你還在我們身邊嗎？

Yes. No. I'm...

是的。不，我是...

Go ahead, Scott.

來吧，斯科特。

Yes. So essentially, the $5.8 million goes away, I get that. Can you tell us the split between cost of sales and SG&A of the $5.8 million?

是的。所以基本上，580 萬美元就消失了，我明白。您能告訴我們 580 萬美元的銷售成本和銷售成本、一般行政管理費用之間的分配嗎？

$3.8 million -- let's see, now $3.3 million, that would have been gross margins. The residual would have been your base cost, but you need to factor in about, let's call it, about $700,000 into cost as well. So probably $4 million versus $1.8 million on COGS versus SG&A, Scott.

380 萬美元——讓我們看看，現在是 330 萬美元，這就是毛利率。剩餘部分就是您的基本成本，但您還需要考慮大約 700,000 美元的成本。因此，斯科特，COGS 與 SG&A 的成本可能分別為 400 萬美元和 180 萬美元。

Okay. And one of the big highlights of last quarter was your discussion around where you expect margins to be both in 2022 as well as in 2023. So does your sort of goal of being up 200 to 300 basis points of -- in EBITDA margin, does that sort of relate to the trailing 12 months through the December quarter? And would kind of just push this quarter aside, making that number more like 400-plus EBITDA margin expectation for improvement for 2022?

好的。上季的一大亮點是您對 2022 年和 2023 年利潤率預期的討論。您的 EBITDA 利潤率目標是提高 200 到 300 個基點，這與 12 月所在季度的過去 12 個月有什麼關係嗎？是否會稍微把這個季度放在一邊，使這個數字更像是 2022 年 400 多 EBITDA 利潤率的改善預期？

Yes. Scott, as I said in my script, based on this quarter, I view this as an event, not a trend. And our expectations on fiscal year '22 and the margin expansions that we shared last quarter are unchanged.

是的。斯科特，正如我在劇本中所說，基於本季度，我認為這是一個事件，而不是趨勢。我們對 22 財年的預期以及上個季度的利潤率擴張預期保持不變。

Well, right, Bruce, but what I'm saying here is that that guidance was 200 to 300 basis points. So essentially you are saying...

嗯，是的，布魯斯，但我在這裡要說的是，該指引是 200 到 300 個基點。所以本質上你是在說......

I'm saying, yes, based on where we were as of the trailing 12 in December, our view is unchanged.

我的意思是，是的，根據我們截至 12 月尾隨 12 個月的情況，我們的觀點沒有改變。

Very good. And your view on '23 for EBITDA margin, 22% plus, is that unchanged?

非常好。您對 23 年 EBITDA 利潤率（22% 以上）的看法是否不變？

Yes. That's correct. That is unchanged.

是的。這是正確的。那是不變的。

Our next question comes from Brian Drab with William Blair.

我們的下一個問題來自布萊恩·德拉布和威廉·布萊爾。

I'm just going to begin with MRO. I know you said that (technical difficulty) believe that you're starting to see MRO activity picking up. And can you just elaborate on that? I'm just opening up the slides now for the first time. So I don't know if there's some detail, but can you quantify at all what you've seen in MRO growth than what you're expecting for the year in MRO?

我將從 MRO 開始。我知道您說過（技術難度）相信您開始看到 MRO 活動回升。能詳細說明一下嗎？我現在只是第一次打開幻燈片。所以我不知道是否有一些細節，但您能否量化您在 MRO 成長中看到的情況，而不是您對今年 MRO 的預期？

Yes. We've seen a nice progression through the year. I think maybe if you should kind of recall back to our Q1, MRO was off 48%. And I'd like to note that this is really unusual for us in a downturn. Normally, maintenance spending stays pretty robust, but the pandemic, limited access to facilities. And so we saw really just an acute drop-off in maintenance. And as we said, we believe that there is a building demand for maintenance activity, that pent-up demand.

是的。這一年我們看到了良好的進展。我想如果你應該回想一下我們的第一季度，MRO 下降了 48%。我想指出的是，這對於處於經濟低迷時期的我們來說確實很不尋常。通常情況下，維護支出保持相當強勁，但大流行限制了設施的使用。因此，我們確實看到維護工作急劇下降。正如我們所說，我們相信維護活動的需求正在不斷增加，也就是被壓抑的需求。

So we were off 48%. The progression next quarter was around 34%, if I'm not mistaken. Then 24%. I think we finished this one around 14%. So we -- and that's a decrement to the prior year. Particularly, we saw in March an inflection where we actually saw positive MRO growth year-over-year in the month of March.

所以我們的折扣是 48%。如果我沒記錯的話，下個季度的進展約為 34%。然後是24%。我認為我們完成了這項任務大約 14%。所以我們——這比前一年減少。特別是，我們在 3 月看到了一個拐點，實際上我們在 3 月看到了 MRO 同比正成長。

The thing that really negatively impacted our fourth quarter the most is that as you recall, starting January, the lockdowns in Canada and Europe, now in India, all of those really impacted -- negatively impacted those MRO sales early in the quarter, but February through March, we saw those gain momentum. So we are seeing a nice trend in the right direction.

對我們第四季度影響最大的事情是，正如您所記得的那樣，從1 月份開始，加拿大和歐洲的封鎖，現在是印度，所有這些都確實產生了影響- 對本季度初的MRO 銷售產生了負面影響，但2 月整個三月，我們看到這些勢頭增強。所以我們看到了一個朝著正確方向發展的良好趨勢。

Okay. And what have you seen in terms of MRO in April and May?

好的。您在 4 月和 5 月的 MRO 方面看到了什麼？

We are seeing that trend continue and maybe even gain speed.

我們看到這種趨勢仍在繼續，甚至可能加速。

And Brian, the caveat I would have to that would just underline maybe previous comments Bruce made around, it's going to depend regionally on where things are at from an opening standpoint. Geographies like the U.S. are obviously going to be a little further ahead. Places like Canada, a little further behind. As you start to look globally, clearly, places like India are still struggling. So it kind of reinforces the thesis that it's not necessarily a change in underlying demand, but it's more, as we view it, driven by access restrictions. But certainly, the first few weeks in the new year have shown promising in areas that are opening up.

布萊恩，我必須警告的是，這可能只是強調了布魯斯之前發表的評論，從開放的角度來看，這將取決於地區情況。像美國這樣的地區顯然會領先一些。像加拿大這樣的地方，就稍微落後一些。當你開始放眼全球時，很明顯，像印度這樣的國家仍在苦苦掙扎。因此，這在某種程度上強化了這樣一個論點：這不一定是潛在需求的變化，但正如我們所認為的，更多的是由准入限制所驅動的。但可以肯定的是，新年的頭幾週在開放的領域中顯示出了希望。

Okay. Great. And then as long as we're talking about some of the regions, can you break down what you saw in terms of revenue and orders in the major regions in the quarter?

好的。偉大的。然後，只要我們談論一些地區，您能否詳細分析您在本季主要地區的收入和訂單方面所看到的情況？

So revenues in the quarter, Brian, U.S., let's see, we're down, let's say, 28% in the U.S.; down about 23% in Canada; EMEA was actually up quite positively. I mentioned the large projects previously, that's a plus 34%; and APAC down 16%, that should get us to the down 17% in the quarter.

那麼本季的收入，布萊恩，美國，讓我們看看，我們在美國下降了 28%；加拿大下降約23%；歐洲、中東和非洲地區的成長其實非常積極。我之前提到過大項目，那就加34%；亞太地區下降了 16%，這應該會讓我們本季下降 17%。

Okay. EMEA, again, sorry, was what, EMEA?

好的。歐洲、中東和非洲地區，再次抱歉，是什麼，歐洲、中東和非洲地區？

Apologies. 34% positive.

道歉。 34% 呈陽性。

Plus 34%. Okay. And then I guess, just 2 more questions. Texas freeze that we had in February, and you mentioned that could drive demand, longer term. Have you seen any -- can you talk any more about that issue and driver? And are there any regulations maybe that are going to go into place or have gone into place that could drive demand for your product?

加34%。好的。然後我想，還有兩個問題。德州二月發生了凍結，您提到這可能會推動長期需求。你見過嗎——你能再談談這個問題和驅動程式嗎？是否有任何即將實施或已經實施的法規可以推動對您產品的需求？

Yes. So first of all, it was a, I mean, large and widespread impact to the infrastructure. And it was not only power, but also it included the natural gas infrastructure. I can tell you there are a number of bills currently in the Texas legislature that are underway, several of which would really have a positive overall impact on business opportunities going forward. I can't tell you -- a session is about to end -- I can't tell you that those will pass, but they have had pretty significant support.

是的。首先，我的意思是，這對基礎設施產生了巨大而廣泛的影響。這不僅是電力，還包括天然氣基礎設施。我可以告訴您，德州立法機構目前正在審議多項法案，其中一些法案確實會對未來的商業機會產生積極的整體影響。我不能告訴你——會議即將結束——我不能告訴你這些會通過，但他們得到了相當大的支持。

I do believe in the short term, kind of the near term, customers are a bit wait-and-see to see what legislation has passed, to make sure that what they do is in compliance with any new laws or legislation that's passed. However, we have seen some nice business here just in the last few months as customers are doing some work, but we would expect that to gain momentum in advance of the upcoming winter season.

我確實相信，在短期內，客戶會有點觀望，看看通過了哪些立法，以確保他們所做的事情符合任何已通過的新法律或立法。然而，在過去的幾個月裡，我們在這裡看到了一些不錯的業務，因為客戶正在做一些工作，但我們預計這將在即將到來的冬季之前獲得動力。

Okay. And then maybe this last one is for Kevin, but I'm just curious if you could give any comment on this. If we get to the end of fiscal '22 and revenue comes in in the range, and we're looking to then fiscal '23 and potential for things to get better. Let's say you get an incremental $50 million in revenue or something. And what would the incremental margins be on that type of growth, longer term, given the new cost structure, like incremental EBITDA margin on revenue, if things start to really improve?

好的。也許最後一個是寫給凱文的，但我很好奇你是否能對此發表任何評論。如果我們到 22 財年末並且收入在該範圍內，那麼我們預計到 23 財年情況會變得更好。假設您的收入增加了 5000 萬美元之類的。如果情況開始真正改善，考慮到新的成本結構（例如收入的增量 EBITDA 利潤率），從長遠來看，這種成長的增量利潤率會是多少？

Yes. Brian, I won't speak to the -- maybe the incrementals themselves, but we'll kind of go back to previous comments and questions around those long-term outline we've kind of put out there. If we think about the incremental improvements to EBITDA over the next 12 months, we think that's unchanged, and certainly still having a path to that 22% to 25% range on EBITDA margins over the longer term. I think all of that is fully intact and in front of us.

是的。布萊恩，我不會談論——也許是增量本身，但我們會回到之前圍繞我們在那裡提出的長期大綱的評論和問題。如果我們考慮未來 12 個月 EBITDA 的逐步改善，我們認為這不會改變，而且從長遠來看，EBITDA 利潤率肯定仍有望達到 22% 至 25% 的範圍。我認為所有這些都完好無損地擺在我們面前。

And when we think about the opportunity to go after some of these incremental strategic initiatives as well, they're adjacent. Whether it's investments on the front end of the business, on the channel, new product development, we're putting those plans together as well. But I think they'll certainly be incremental and accretive to the business. And we look at that 22% to 25% type of EBITDA range over the long-term is fully achievable, still. I think this quarter, like Bruce said, it's a bump in the road, not the start of a trend.

當我們考慮實施其中一些增量策略舉措的機會時，它們是相鄰的。無論是對業務前端、通路、新產品開發的投資，我們也會將這些計畫放在一起。但我認為它們肯定會對業務產生增量和增值。我們認為，從長遠來看，22% 至 25% 的 EBITDA 範圍仍然是完全可實現的。我認為這個季度，就像布魯斯所說，這是道路上的一個坎坷，而不是趨勢的開始。

(Operator Instructions) Our next question comes from Jon Braatz with Kansas City Capital.

（操作員說明）我們的下一個問題來自堪薩斯城資本公司的 Jon Braatz。

Bruce, could you talk a little bit more about the subject of moving from maybe steam to electrification, heat tracing? Is this being driven by cost? Is it being driven by ESG? And sort of how big of an opportunity could this be going forward?

布魯斯，您能多談談從蒸氣到電氣化、伴熱的主題嗎？這是成本驅動的嗎？它是由 ESG 驅動的嗎？未來這會是一個多大的機會呢？

And secondarily, are you seeing the possibility of a conversion to electric steam tracing? Or is it just new capital projects going directly to electrification and not using steam? Anyways, whatever you can say about this, that would be great.

其次，您是否看到轉換為電蒸汽伴熱的可能性？或只是直接進行電氣化而不使用蒸汽的新資本項目？不管怎樣，無論你能對此說什麼，那就太好了。

Yes. Jon, it's a great question. The shift from steam to electric has been underway for many years. The last kind of market information that we had kind of gotten is somewhere in the mid-40% of the market was still steam. And the balance was electric, so somewhere in that range. What we believe is that the ESG, the push towards decarbonization will accelerate that trend.

是的。喬恩，這是一個很好的問題。從蒸汽到電力的轉變已經進行了很多年。我們獲得的最後一個市場資訊是，在 40% 的市場中，市場仍然充滿活力。天平是電動的，所以在這個範圍內。我們相信，ESG、脫碳的推動將加速這一趨勢。

The advantages of moving to electric are -- it's actually more efficient. You have a higher level of control. And then certainly, it's cleaner. So -- and lower maintenance. So those are all kind of the drivers. The setback would be just the initial capital outlay. But this is a trend that's been underway, but we believe that just kind of the shifts that we're seeing globally will accelerate that transition.

轉向電動的優點是——它實際上更有效率。您擁有更高等級的控制權。當然，它更乾淨。所以——並且維護成本更低。這些都是驅動程式。挫折只是最初的資本支出。但這是一種一直在發生的趨勢，但我們相信，我們在全球範圍內看到的這種轉變將加速這種轉變。

That's all the questions for today. I'll now turn it back to Bruce Thames for closing remarks. Thank you.

這就是今天的所有問題。現在我將把它轉回布魯斯泰晤士進行結束語。謝謝。

All right. Thank you, Diego, and thank you all for joining the call here today. We appreciate your interest in Thermon, and enjoy the rest of your day.

好的。謝謝迭戈，也謝謝大家今天參加電話會議。我們感謝您對 Thermon 的興趣，並祝您有個愉快的一天。

Thanks. This concludes today's conference. All parties may disconnect. Have a good day.

謝謝。今天的會議到此結束。所有各方都可以斷開連接。祝你有美好的一天。