Twin Disc Inc (TWIN) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. I would like to welcome everyone to the Twin Disc Incorporated Fiscal Second Quarter 2024 conference call. (Operator Instructions)

女士們先生們，謝謝你們的支持。我謹歡迎大家參加 Twin Disc Incorporated 2024 年第二季財年電話會議。（操作員說明）

I will now hand the call over to Mr. Jeff Knutson, Chief Financial Officer. You may begin your conference.

我現在將把電話轉交給財務長 Jeff Knutson 先生。您可以開始您的會議了。

Good morning and thank you for joining us today to discuss our F2024 second quarter results. On the call with me today is John Batten, Twin Disc's CEO. I would like to remind everyone that certain statements made during this conference call, especially statements expressing hopes, beliefs, expectations or predictions for the future are forward-looking statements. It is important to remember that the company's actual results could differ materially from those projected in such forward-looking statements.

早安，感謝您今天加入我們討論我們的 F2024 第二季業績。今天與我通話的是 Twin Disc 執行長 John Batten。我想提醒大家，本次電話會議中所做的某些陳述，尤其是表達對未來的希望、信念、期望或預測的陳述，均為前瞻性陳述。重要的是要記住，公司的實際結果可能與此類前瞻性聲明中的預測有重大差異。

Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements are contained in the company's annual report on Form 10-K, copies of which may be obtained by contacting the company or the SEC. Any forward-looking statements that are made during this call are based on assumptions as of today, and the company undertakes no obligation to publicly update or revise these statements to reflect subsequent events or new information.

有關可能導致實際結果與前瞻性陳述中的結果有重大差異的因素的資訊包含在公司 10-K 表格年度報告中，可以透過聯絡公司或 SEC 取得該報告的副本。本次電話會議期間所做的任何前瞻性陳述均基於截至目前的假設，本公司不承擔公開更新或修改這些陳述以反映後續事件或新資訊的義務。

During today's call, management will also discuss certain non-GAAP financial measures. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. By now, you should have received the news release, which was issued this morning before the market opened. If you have not received a copy, please call our office at 262-638-4000 and we will send the release to you.

在今天的電話會議上，管理階層還將討論某些非公認會計準則財務指標。有關非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務表現的調整表，請參閱今天稍早發布的收益報告。現在，您應該已經收到了今天早上開市前發布的新聞稿。如果您尚未收到副本，請致電我們的辦公室：262-638-4000，我們會將新聞稿發送給您。

Now I'll turn the call over to John.

現在我將把電話轉給約翰。

Good morning, everyone, and welcome to our F2024 second quarter conference call. Let's begin today's call with some highlights. We continued our solid momentum in the second quarter, delivering profitable growth by generating historically high cash from operations. These results are driven in large part by strong operational execution by our teams coupled with our continued focus on working capital improvement. We are seeing ongoing strength both in marine and propulsion and land-based transmissions, supporting 15.2% year over year sales growth to continue our trend of double digit top line expansion in F2024. We also delivered solid gross margin expansion, which improved 140 basis points to 28.3%. We are also seeing continued backlog growth as our teams work to capture stable end market demand. One particular highlight has been significant increase in orders for workboat marine transmissions in Asia Pacific, a return to activity in a market after cyclical softness in the offshore Asian markets.

大家早安，歡迎參加我們的 F2024 第二季電話會議。讓我們從一些要點開始今天的電話會議。我們在第二季度持續保持強勁勢頭，透過營運產生歷史最高水準的現金實現獲利成長。這些成果在很大程度上得益於我們團隊強大的營運執行力以及我們對營運資本改善的持續關注。我們看到船舶、推進和陸基變速箱領域持續強勁，支持銷售額年增 15.2%，以延續我們 2024 年兩位數營收擴張的趨勢。我們的毛利率也實現了穩健成長，提高了 140 個基點，達到 28.3%。隨著我們的團隊努力捕捉穩定的終端市場需求，我們也看到積壓訂單持續成長。一個特別的亮點是亞太地區工作船船用變速箱訂單的大幅增加，這是亞洲近海市場週期性疲軟後市場活動的恢復。

Moving on to results by product group, sales in marine and propulsion systems increased 29%, driven by growing activity in global commercial markets. We are seeing further increases in defense spending driving patrol boat projects, which we expect to continue given current geopolitical turmoil. That backlog remains at record levels, rising 6% sequentially and supported by the success of the debt and role of partnership. That inventory has increased in the near term as we prepare to meet increased demand heading into the second half of the fiscal year.

從產品組來看，受全球商業市場活動不斷增長的推動，船舶和推進系統的銷售額成長了 29%。我們看到國防支出進一步增加，推動了巡邏艇計畫的發展，鑑於當前的地緣政治動盪，我們預計這項計畫將繼續下去。在債務和合作關係的成功的支持下，積壓訂單仍保持在創紀錄的水平，環比增長 6%。隨著我們準備滿足進入本財年下半年增加的需求，庫存在短期內增加。

Onto the land-based transmission business, sales grew 8% year over year, driven by rising activity in the oil and gas markets. We're encouraged to see our first new unit orders in North America within oil and gas and expect further strength for this part of the business in the coming quarters. ARFF has also performed well with strong demand for these transmission supporting continued trajectory of backlog growth. Looking broadly at the segment, orders are continuing to trend upwards and we have seen early signs of improvement in spare parts orders after previously reporting and pull back to the end market uncertainty in the first quarter.

在陸基輸電業務方面，受石油和天然氣市場活動不斷增長的推動，銷售額年增 8%。我們很高興看到我們在北美石油和天然氣領域的第一批新單位訂單，並預計這部分業務在未來幾季將進一步強勁。ARFF 也表現良好，對這些傳輸的強勁需求支持了積壓的持續成長。縱觀該領域，訂單繼續呈上升趨勢，在先前的報告和第一季終端市場不確定性回落之後，我們已經看到了備件訂單改善的早期跡象。

Our industrial segment has remained pressured by softness amongst industrial OEM customers with sales declining 13% versus the prior year. We have continued to see sluggish demand for lower content commoditized product where demand has remained steady for sophisticated, higher content products. Despite this near term softness, we remain focused on capturing opportunities to partner with major domestic OEMs on a range of products.

我們的工業部門仍受到工業 OEM 客戶疲軟的壓力，銷售額比前一年下降 13%。我們持續看到對低含量商品化產品的需求疲軟，而對複雜、高含量產品的需求則保持穩定。儘管近期經濟疲軟，我們仍專注於抓住與國內主要原始設備製造商在一系列產品上合作的機會。

Next, I'll speak to inventory and backlog. Our backlog has continued to increase, driven by solid demand across our end markets, along with the impact of supply chains improvements made over the past year to enable faster shipment deliveries. We are also seeing a temporary increase in inventory as a percentage of backlog, mainly due to the near term increase in that inventory as mentioned earlier. That said, we expect to see inventories fall in the second half of the fiscal year as we work through our current backlog and remain focused on driving inventory as a percentage of backlog lower in the coming quarters.

接下來，我將談談庫存和積壓。在終端市場的強勁需求以及過去一年為實現更快的發貨交付而改進供應鏈的影響的推動下，我們的積壓訂單持續增加。我們也發現庫存佔積壓訂單的比例暫時增加，這主要是由於前面提到的庫存近期增加。也就是說，我們預計庫存將在本財年下半年下降，因為我們正在解決目前的積壓訂單，並繼續致力於在未來幾季降低庫存佔積壓訂單的百分比。

I'd like to briefly address our long-term strategy before Jeff takes us through the financial details. We aim to position Twin Disc as a leading provider of hybrid and electrification solutions for marine and off-highway land-based applications. In recent quarters, we have made great strides in rationalizing and modernizing our business, helping deliver improved shipments while lowering inventory costs and lead times to create better results for all stakeholders. We are maintaining our focus on controls and systems integration, shifting our business into new avenues that will bring us profitable growth. With the support of our strong balance sheet, we are also continuously evaluating M&A opportunities to grow our business within the industrial and marine technology sectors, both of which are ample opportunities for us to expand our offerings in the hybrid and electrification space.

在傑夫向我們介紹財務細節之前，我想先簡單介紹一下我們的長期策略。我們的目標是將 Twin Disc 定位為船舶和非公路陸地應用混合動力和電氣化解決方案的領先供應商。最近幾個季度，我們在業務合理化和現代化方面取得了長足進步，幫助改善了發貨，同時降低了庫存成本和交貨時間，為所有利益相關者創造了更好的成果。我們繼續專注於控制和系統集成，將我們的業務轉向新的途徑，這將為我們帶來獲利成長。在我們強大的資產負債表的支持下，我們也不斷評估併購機會，以發展我們在工業和海洋技術領域的業務，這兩個領域都是我們擴大混合動力和電氣化領域產品的充足機會。

With that, I'll now turn it over to Jeff to discuss the financials. Jeff?

現在，我將把它交給傑夫來討論財務問題。傑夫？

Thanks, John. Good morning, everyone. We delivered sales of $73 million for the quarter, up $9.6 million or 15.2% from the prior year period as overall demand remained strong. Net income attributable to Twin Disc for the second quarter was $900,000 or $0.07 per diluted share compared to $1.8 million or $0.13 per diluted share in the second quarter of F2023.

謝謝，約翰。大家，早安。由於整體需求依然強勁，本季我們的銷售額為 7,300 萬美元，比去年同期成長 960 萬美元，成長 15.2%。第二季 Twin Disc 淨利為 90 萬美元，即稀釋後每股收益 0.07 美元，而 2023 年第二季為 180 萬美元，即稀釋後每股收益 0.13 美元。

Gross profit margin increased to 28.3% compared to 26.9% during the prior year period. And gross profit increased 21.3% to $20.7 million. This improvement reflects the benefit of prior pricing actions, continued easing of supply chain headwinds, a favorable product mix, and successfully executing our operational playbook.

毛利率由去年同期的26.9%增至28.3%。毛利成長 21.3%，達到 2,070 萬美元。這項改進反映了先前的定價行動、供應鏈逆風的持續緩解、有利的產品組合以及成功執行我們的營運策略的好處。

Marine and propulsion systems reported double digit growth and land based transmissions reported 8% growth, while industrial sales declined compared to the prior year period. Looking at top line distribution across geographies, sales continued to increase across the Asia-Pacific and European regions compared to the prior year, supported by robust demand while North American sales declined.

船舶和推進系統報告了兩位數的增長，陸基傳輸報告了 8% 的增長，而工業銷售額與去年同期相比有所下降。從各地區的收入分佈來看，亞太和歐洲地區的銷售額與去年相比持續成長，這得益於強勁的需求，而北美銷售額則有所下降。

We continued to strengthen our balance sheet through the solid cash generation delivered in the second quarter, we reduced net debt by $21.7 million to negative $3.3 million compared to the prior year period and ended the quarter with a cash balance of $21 million, approximately $7.5 million higher versus the prior year period.

透過第二季實現的穩定現金生成，我們繼續加強我們的資產負債表，與去年同期相比，我們將淨債務減少了2,170 萬美元，達到負330 萬美元，本季結束時現金餘額為2100萬美元，約750 萬美元高於去年同期。

EBITDA decreased to $5.5 million from $7 million during the prior year period due to a $4.2 million prior year gain on the sale of a facility recorded in the second quarter of 2023. We continue to decrease our leverage ratio this quarter to below negative 0.6x, putting us in an excellent position to invest in our business while executing inorganic growth opportunities.

EBITDA 從去年同期的 700 萬美元下降至 550 萬美元，原因是 2023 年第二季記錄的出售設施帶來了 420 萬美元的去年收益。本季我們繼續將槓桿率降至負 0.6 倍以下，這使我們在投資業務、同時執行無機成長機會方面處於有利地位。

As noted earlier, gross profit margin for the second quarter increased to 28.3%, expanding approximately 140 basis points from the prior year period, again due to the benefit of pricing actions, continued easing of supply chain headwinds, a favorable product mix, and successful execution of our operational playbook.

如前所述，第二季毛利率增至 28.3%，較上年同期成長約 140 個基點，這同樣得益於定價行動、供應鏈阻力持續緩解、有利的產品組合以及成功的業績。執行我們的操作手冊。

Our improved supply chain has continued to enable stronger shipments. However, we have faced some currency headwinds and higher labor costs within ME&A That being said, while ME&A has increased nominally, it has decreased as a percentage of sales as we continue to grow our business.

我們改進的供應鏈持續使出貨量更加強勁。然而，我們在 ME&A 內部面臨一些貨幣阻力和更高的勞動力成本。話雖如此，雖然 ME&A 名義上有所增加，但隨著我們業務的不斷發展，它佔銷售額的百分比有所下降。

Now on to capital allocation, in line with the additional priority specified in our capital allocation framework, given our low debt level, we are exploring M&A opportunities with a specific emphasis on marine technology, industrial, and the hybrid electric sector as John mentioned. Simultaneously, we are making strategic investments within the company, including research and development, expansion into new geographic areas, and continued strengthening of our marketing efforts. As always, we are pleased to consistently return capital to shareholders through repurchases and dividend payments. We will continue to evaluate our capital allocation strategy and priorities adjusting to changes in the economic landscape and our operating environment as they evolve.

現在談到資本配置，根據我們資本配置框架中指定的額外優先事項，考慮到我們的債務水平較低，我們正在探索併購機會，特別是約翰提到的海洋技術、工業和混合動力電動領域。同時，我們正在公司內部進行策略性投資，包括研發、擴展到新的地理區域以及繼續加強我們的行銷力度。一如既往，我們很高興透過回購和股利支付持續向股東返還資本。我們將繼續評估我們的資本配置策略和優先事項，以適應經濟格局和營運環境的變化。

I'd like to now turn the call back over to John to share some closing remarks.

我現在想將電話轉回給約翰，讓他分享一些結束語。

Thanks, Jeff. Before we open the line for questions, I'd like to highlight a few key takeaways from our quarterly results.

謝謝，傑夫。在我們開始提問之前，我想先強調一下我們季度業績的一些關鍵要點。

In summary, we're seeing stable end market demand, advancing our momentum of double digit revenue growth, robust margin expansion, and cash generation. We are focused on maintaining operational improvements that have supported these results, including disciplined working capital management. Despite lingering macroeconomic uncertainty, we hold a cautiously optimistic outlook towards the remainder of our fiscal year given strengthening demand levels in our end markets. Our consistent performance will continue to strengthen our financial profile, giving us the ability to work through potential challenges while pursuing growth opportunities.

總而言之，我們看到穩定的終端市場需求，推動了我們兩位數收入成長、強勁利潤率擴張和現金產生的勢頭。我們致力於維持支持這些成果的營運改進，包括嚴格的營運資本管理。儘管宏觀經濟不確定性揮之不去，但考慮到終端市場需求水準的增強，我們對本財年剩餘時間的前景持謹慎樂觀的態度。我們持續的業績將繼續增強我們的財務狀況，使我們有能力應對潛在的挑戰，同時尋求成長機會。

I'd like to thank all of our teams for their hard work and commitment to supporting our business this quarter. We look forward to sustaining this progress as we drive to win this forward and generate long-term value for our shareholders.

我要感謝我們所有團隊的辛勤工作和對本季支持我們業務的承諾。我們期待在努力贏得這一進步並為股東創造長期價值的過程中保持這一進展。

That concludes our prepared remarks. Jeff and I will now be happy to answer your questions.

我們準備好的演講到此結束。傑夫和我現在很樂意回答您的問題。

(Operator Instructions) Simon Wong, Gabelli Fund.

（操作員指示）Simon Wong，Gabelli 基金。

Good morning.

早安.

Hey, Simon.

嘿，西蒙。

Good morning, Simon.

早安，西蒙。

First question, you saw some nice growth in your land based transmission business. How much was from the oil patch?

第一個問題，您看到陸基傳輸業務取得了良好的成長。油田裡有多少錢？

I would say the oil patch was relatively consistent. I think it was probably split between in our oil patch from the transmission side.

我想說油斑相對一致。我認為它可能是在我們的油田中從變速箱一側分開的。

So 50-50, so about $7 million to $8 million.

50-50，大約 700 萬到 800 萬美元。

I think that's about right, yes.

我認為這是正確的，是的。

Okay. Now you mentioned that you saw higher activity, or you receive your first new equipment order from the North America. Is that for the new e-frac? Or is that for the diesel based transmission?

好的。現在您提到您看到了更高的活動，或者您收到了來自北美的第一份新設備訂單。這是新的 e-frac 的嗎？還是用於柴油變速箱？

Yes, Simon, the new unit orders were for traditional diesel frac. We are still awaiting the first PO for the e-frac. I'm hoping that happens yet this quarter. But so far, all the new unit orders and obviously all the spare parts orders remain for North America and Asia. And our business in Asia keeps chugging along at a very good rate this quarter compared to a year ago.

是的，西蒙，新的裝置訂單是針對傳統柴油壓裂的。我們仍在等待 e-frac 的第一個 PO。我希望這會在本季發生。但到目前為止，所有新機組訂單以及顯然所有備件訂單仍然來自北美和亞洲。與去年同期相比，本季我們在亞洲的業務持續以非常好的速度發展。

Okay. Now, that $8 million from the from the oil patch, is that mostly -- I mean, you did mention some new units going to Asia. Is that more into consumables?

好的。現在，來自石油領域的 800 萬美元，主要是——我的意思是，你確實提到了一些前往亞洲的新單位。是不是消耗品比較多？

Yes.

是的。

How does that breakdown between consumable and new equipment?

消耗品和新設備之間如何劃分？

So I would say in the quarter, the revenue growth was more in new units to Asia and a little bit less on spare parts. So, the mix of new units, spare parts were higher in the second quarter than it had been in the previous quarters. So, we saw a little bit of slowdown in rebuild activity and an uptick in new unit activity.

因此，我想說，本季的營收成長更多來自於亞洲的新設備，而備件方面的收入成長則略有減少。因此，第二季新設備和備件的組合高於前幾季。因此，我們看到重建活動略有放緩，而新單位活動增加。

Okay. Then on your e-frac offering, are you still within your first purchase order? What's been the feedback from your customers?

好的。那麼，在您的 e-frac 產品中，您還在第一筆採購訂單中嗎？您的客戶有何回饋？

The feedback has been great. The testing has gone extremely well. I'll be honest, I'm surprised we haven't had the order yet. But I think we're just working out some details and some financing for the customer. That's where we stand. We remain ready and we're geared up for production. We could react very quickly.

反饋非常好。測試進行得非常順利。老實說，我很驚訝我們還沒有收到訂單。但我認為我們只是在為客戶制定一些細節和一些融資。這就是我們的立場。我們隨時準備著，並為生產做好準備。我們可以很快做出反應。

Okay, got it. Then, you saw some really nice geographic expansion growth or growth in geographic expansion last year. It looks like it continued this quarter. How much more room is there to expand geographically?

好，知道了。然後，去年你看到了一些非常好的地域擴張成長或地理擴張成長。看起來這個季度還在繼續。地理上還有多少擴充空間？

Quite a bit there's, I mean, we've just scratched the surface in North America and Asia. We had shipments to Australia last fiscal year -- actually, I'm trying to think that might have been the first quarter. But again, just scratching the surface, particularly in the elite product line. The combination of the role, design, thruster, and propeller, the mega yacht market, they don't just build in Europe, they build around the world. So, we're looking to expand that.

我的意思是，在北美和亞洲，我們剛剛觸及了皮毛。上個財年我們向澳洲發貨——實際上，我想這可能是第一季。但同樣，這只是表面現象，尤其是在菁英產品線。角色、設計、推進器和螺旋槳的結合，巨型遊艇市場，他們不僅在歐洲建造，還在世界各地建造。因此，我們正在尋求擴大這一範圍。

So we have actually we do have just some ply, I would say, production constraints in the Netherlands that we're trying to solve here in the US. Once we get that behind us, I think we'll see some more geographic expansion as well. But you know we've got some things to work out so that we can grow the top line, it's production-wise, capacity-wise.

所以我們實際上確實有一些，我想說的是，荷蘭的生產限制，我們正試圖在美國解決。一旦我們解決了這個問題，我想我們也會看到更多的地理擴張。但你知道，我們還有一些事情需要解決，以便我們能夠增加收入，無論是生產方面還是產能方面。

Okay. All right. A couple of questions for Jeff. We saw gross margin expand nicely year over year, but it did take a step back from the first quarter. How do you see gross margin progressing for the rest of the year?

好的。好的。有幾個問題要問傑夫。我們看到毛利率比去年同期大幅成長，但確實比第一季有所回落。您認為今年剩餘時間的毛利率進度如何？

Yes. I think it's going to be right around the range between Q1 and Q2 and it's depending on mix. You know, like John mentioned, our aftermarket mix, especially oil and gas aftermarket in Q2 was a little bit lower than we've seen in previous quarters and that has a little bit of a drag on margin. We did see an uptick in orders as we closed out the quarter, so that was a positive sign. So, I think it's going to be in this range and kind of what we've said before, in the high 20% trying to get to 30% is what we would expect.

是的。我認為它會在 Q1 和 Q2 之間的範圍內，並且取決於混合。你知道，就像約翰提到的，我們的售後市場組合，特別是第二季度的石油和天然氣售後市場比我們在前幾個季度看到的要低一些，這對利潤率有一點拖累。當我們結束本季時，我們確實看到訂單增加，所以這是一個積極的跡象。所以，我認為它會在這個範圍內，就像我們之前所說的那樣，在 20% 的高點，試圖達到 30% 是我們所期望的。

Okay. One more question if I could sneak one more in. What's your CapEx outlook for the full year?

好的。還有一個問題，我是否可以再偷偷溜進去一次。您對全年資本支出的展望如何？

Yes, I think $10 million. We've been pretty consistently targeting $10 million. I think we've got a run rate so far that gets it's pretty close. So, unlike maybe some previous years where it was really back-end loaded. I think we've got orders in place to get it right around that $10 million, maybe a little mid-month.

是的，我想是 1000 萬美元。我們一直將目標定為 1000 萬美元。我認為到目前為止我們的運行率非常接近。因此，與前幾年不同的是，它實際上是後端加載的。我認為我們已經收到訂單，可以在 1000 萬美元左右（也許是月中旬）完成。

Okay, thank you.

好的謝謝。

Yes, there's more on order, but the lead times for machine tools, gear grinders, they're still out over 12 months. So, we have big machine tools on order, but they're not coming in until next fiscal year.

是的，還有更多訂單，但工具機、齒輪磨床的交貨時間仍然超過 12 個月。因此，我們訂購了大型機床，但要到下個財政年度才能到貨。

Okay, great. Thank you.

好的，太好了。謝謝。

Thanks, Simon.

謝謝，西蒙。

(Operator Instructions) Mike Greene, Neuburger.

（操作員說明）Mike Greene，Neuburger。

Hey, can you hear me, it's actually [Ran]

嘿，你聽得到我說話嗎，其實是[跑]

Hey, Ran.

嘿，蘭。

Hey, Ran. Yes. How are you?

嘿，蘭。是的。你好嗎？

Great. So, if you use the Q2 like $5.5 million of EBITDA, how would you guys expect second half quarters to behave? So, we're getting little top, you know, additional top lines.

偉大的。那麼，如果您使用第二季的 550 萬美元 EBITDA，您預計下半年的表現如何？所以，我們得到的頂線很少，你知道，額外的頂線。

Yes. I think, we will be up. I think we've been hovering around $30 million trailing 12 months EBITDA. I think we'll grow through the second half. I'm getting to the second half like $7.5 million to $8 million.

是的。我想，我們會起來的。我認為過去 12 個月的 EBITDA 一直徘徊在 3000 萬美元左右。我認為我們會在下半年有所成長。下半年我會賺到 750 萬到 800 萬美元。

Okay, great. And given the backlog of what you're hearing about end markets, I'm assuming you feel pretty good about the second half having growth in revenues year over year basis. Just wondering about an extra if you have any sort of visibility of continued top line growth year-over-year?

好的，太好了。考慮到您所聽到的有關終端市場的積壓情況，我假設您對下半年收入同比增長感到非常滿意。只是想知道您是否能看到收入逐年持續成長的情況？

Yes, Ran, it's John. I think given our backlog and what we saw in orders in the second quarter and some feedback we're getting in the first quarter, obviously, pretty optimistic. The backlog is there for the second half do very well. It's just a question of unforeseen surprises in the supply chain, things taking longer to get to us because of concerns in the Middle East, and shipping taking longer. But the backlogs there to have a very nice second quarter.

是的，蘭，我是約翰。我認為，考慮到我們的積壓情況、第二季的訂單情況以及我們在第一季得到的一些回饋，顯然，我們非常樂觀。下半年的積壓工作做得很好。這只是供應鏈中不可預見的意外問題，由於中東的擔憂，貨物需要更長的時間才能到達我們手中，而且運輸時間也更長。但那裡的積壓使得第二季表現非常好。

We're reading everything that you're reading about a soft landing recession in our market, the second half of the year, the beginning of our next fiscal year. So far Ran, our orders and what we're hearing from our customers, there's a little bit of that, but we're also seeing some optimism in markets that had been quiet for a long time. And I mentioned in my comments, you know, the Asian marine market, particularly tugs, whether it's for mining, seem to be doing very well. So, I think it's for us, it's too soon to tell but we're probably a little bit more optimistic than most going into our F2025.

我們正在閱讀您正在閱讀的有關我們市場軟著陸衰退、下半年、下一個財政年度的所有內容。到目前為止，蘭，我們的訂單以及我們從客戶那裡聽到的消息，有一些這樣的情況，但我們也看到了長期平靜的市場中的一些樂觀情緒。我在評論中提到，你知道，亞洲海洋市場，特別是拖船，無論是用於採礦，似乎都表現得很好。所以，我認為這適合我們，現在下結論還為時過早，但我們可能比大多數人對 F2025 更樂觀。

Okay, great. Let's leave it there. I'm still trying to visit you when the weather gets a little better, but great work on repositioning the company.

好的，太好了。讓我們把它留在那裡吧。天氣好一點時，我仍在嘗試拜訪您，但在重新定位公司方面做得很好。

Thanks, Ran.

謝謝，蘭。

Thank you, ladies and gentlemen. As we have no further questions at this time, we will conclude today's conference call. We thank you for participating, and you may now disconnect.

謝謝你們，女士們、先生們。由於我們目前沒有其他問題，我們將結束今天的電話會議。我們感謝您的參與，您現在可以斷開連接。