Twin Disc Inc (TWIN) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the fiscal 2024 third quarter results conference call. (Operator Instructions) I would now like to turn the call over to Jeff Knutsun, Chief Financial Officer. Please go ahead, sir.

謝謝你的支持。我叫亞歷克斯，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 2024 財年第三季業績電話會議。（操作員指示）我現在想將電話轉給財務長 Jeff Knutsun。請繼續，先生。

Good morning and thank you for joining us today to discuss our fiscal 2024 third quarter results. On the call with me today are John Batten, Twin Disc's CEO.

早安，感謝您今天加入我們討論我們 2024 財年第三季的業績。今天與我通話的是 Twin Disc 執行長 John Batten。

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.

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陳述中的預測有重大差異。

Information concerning factors that could cause actual results to differ materially from those 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有重大差異的因素的資訊包含在公司年度報告的 10-K 表格中。可以透過聯絡公司或 SEC 取得其副本。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.

在今天的電話會議上，管理層還將討論某些非 GAAP 財務指標，以確定非 GAAP 財務指標的定義以及 GAAP 與非 GAAP 財務業績的調節，請參閱今天早些時候發布的收益報告。

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 a release. Now I'll turn the call over to John.

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，我們將發送一份副本。現在我將把電話轉給約翰。

Good morning, everyone, and welcome to our fiscal 2024 third quarter conference call. Let's begin today's call with some highlights. We delivered solid results in the third quarter, continuing the trend seen throughout the year as we continue to capture healthy end market demand. We achieved another quarter of margin expansion as well as robust free cash flow generation.

大家早安，歡迎參加我們的 2024 財年第三季電話會議。讓我們從一些要點開始今天的電話會議。我們在第三季取得了穩健的業績，延續了全年的趨勢，因為我們繼續抓住健康的終端市場需求。我們實現了又一個季度的利潤率擴張以及強勁的自由現金流產生。

These consistent results underscore the long-term impact of operational improvements we've made throughout our business in recent years as well as ongoing tailwinds provided by disciplined working capital management to support overall performance in line with our strategic focus on expanding our presence in the industrial and marine technology markets.

這些一致的結果強調了我們近年來在整個業務中所做的營運改善的長期影響，以及嚴格的營運資本管理提供的持續推動力，以支持整體業績，符合我們擴大在工業領域的戰略重點。海洋技術市場。

We are pleased to have announced our recent agreement to acquire Castle Oil, a leading manufacturer of high-quality power transmission components and gearboxes. Based in Finland. This acquisition will broaden the global reach because we leveraged twin this global sales distribution and service network while also generating cross-selling opportunities through captive existing customer base as we tap into its long-standing relationships with leading European OEMs.

我們很高興地宣布我們最近協議收購 Castle Oil，這是一家領先的高品質動力傳輸零件和變速箱製造商。總部設在芬蘭。此次收購將擴大全球影響力，因為我們利用了這個全球銷售分銷和服務網絡，同時透過利用其與歐洲領先原始設備製造商的長期關係，透過現有的客戶群創造交叉銷售機會。

Similar to the dynamic we've achieved with that with our strong balance sheet and flexible financial profile, we will continue to explore similar strategic opportunities to drive sustained growth for Twin Disc.

與我們憑藉強大的資產負債表和靈活的財務狀況所實現的動態類似，我們將繼續探索類似的策略機會，以推動 Twin Disc 的持續成長。

Moving on to results by product with sales in marine and propulsion systems increased 3% year-over-year. The global commercial markets have remained active, providing a strong foundation for sustained demand. We continue to see an uptick in government defense spending tied to recent geopolitical turmoil, leading to an increase in patrol boat projects and other activity boosted fleet readiness that continues to perform well, supporting overall growth in marine propulsion as the mega yacht market remained strong with a solid 16% sequential increase in six-month backlog, driving the recent inventory build to support rising demand.

接下來看看按產品劃分的業績，船舶和推進系統的銷售額年增 3%。全球商業市場依然活躍，為持續需求奠定了堅實基礎。我們繼續看到，與最近的地緣政治動盪有關的政府國防支出有所增加，導致巡邏艇項目的增加和其他活動的增加，提高了船隊的準備狀態，繼續表現良好，支持了船舶推進的整體成長，因為大型遊艇市場仍然強勁，六個月積壓訂單連續增加 16%，推動近期庫存增加以支持不斷增長的需求。

This uptick underscores the enduring strength of the Belt and Road partnership, which has created an additional competitive edge for Twin Disc by unlocking additional growth opportunities within both new and established markets. We also continue to capture increased demand for work boat marine transmissions, particularly in the Asia Pacific region, due to the resurgence of projects for inland tugs in the region. A portion of this business is being driven by solid demand for coal tugboats utilized for transporting raw material and coal from Indonesia to China. We will continue to focus on tapping into these regional opportunities to position the business for further growth and onto the land-based transmission business, sales decreased 3% year-over-year, driven in part by sustained exports to the Asian oil and gas markets. That said, even a sustainable energy is still a focus globally.

這一上升突顯了「一帶一路」夥伴關係的持久力量，該夥伴關係透過在新市場和成熟市場中釋放額外的成長機會，為 Twin Disc 創造了額外的競爭優勢。我們也繼續抓住工作船海上拉動裝置需求的成長，特別是在亞太地區，由於該地區內陸拖船計畫的復甦。該業務的一部分是由對用於從印尼運輸原材料和煤炭到中國的煤炭拖船的強勁需求推動的。我們將繼續專注於利用這些區域機會，使業務進一步成長，並致力於陸上輸電業務，銷售額年減 3%，部分原因是對亞洲石油和天然氣市場的持續出口。儘管如此，即使是永續能源仍然是全球關注的焦點。

Oil and gas exploration activity remains strong, and we are encouraged by demand in the North American oil and gas market Additionally, increasing our demand remains quite strong, which we will be even better positioned to capture with the addition of Casa. Similar to last quarter, sales in our industrial segment remained off declining 15% year-over-year. This dip can largely be attributed to reduced demand from our lower horsepower range of our offerings. Additionally, while commoditized products have experienced continued weakness, demand for more sophisticated higher content products has been relatively more resilient. We remain focused on advancing our OEM partnerships, which are crucial for our long-term growth strategy and allow us to leverage synergies and reach new markets effectively.

石油和天然氣勘探活動依然強勁，北美石油和天然氣市場的需求令我們感到鼓舞。與上季類似，我們工業部門的銷售額仍年減 15%。這種下降很大程度上歸因於我們較低馬力範圍的產品需求減少。此外，雖然商品化產品持續疲軟，但對更複雜、更高含量產品的需求相對更具彈性。我們仍然專注於推進我們的 OEM 合作夥伴關係，這對於我們的長期成長策略至關重要，並使我們能夠利用協同效應並有效地進入新市場。

Next, I'll speak to inventory and backlog. One of the key indicators for our company strength resources, our backlog, which has been steadily increasing over the past six months. We are pleased to report that our backlog continues to grow both sequentially and on a year over year basis. Critically inventories percentage of backlog has continued to trend downwards as well, reflecting our commitment to ongoing operational efficiency.

接下來，我將談談庫存和積壓。我們公司資源實力的關鍵指標之一是我們的積壓訂單，在過去六個月中一直在穩步增加。我們很高興地報告，我們的積壓訂單繼續連續增長和逐年增長。重要的是，庫存佔積壓的百分比也持續下降，這反映了我們對持續營運效率的承諾。

Looking ahead, we anticipate further progress in inventory reduction during the fourth quarter of 2024 as we continue to work through our backlog supporting continued cash generation.

展望未來，我們預計 2024 年第四季庫存減少將取得進一步進展，因為我們將繼續處理積壓訂單，以支持持續產生現金。

I'd like to briefly address our long-term strategy before Jeff takes us through the financial details. Our commitment to innovation and adaptation is at the forefront of our long term strategy. We are steadfast in our mission to expand our presence into hybrid and electrification solutions for marine and land-based applications, as demonstrated by our agreement to acquire concept. We are committed to our efforts not only to develop but also acquire cutting edge technologies that meet the demands of customers in our global markets.

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。我們對創新和適應的承諾是我們長期策略的首要內容。我們堅定不移地履行我們的使命，將我們的業務擴展到海洋和陸基應用的混合動力和電氣化解決方案，正如我們達成的概念收購協議所證明的那樣。我們不僅致力於開發，而且致力於獲取滿足全球市場客戶需求的尖端技術。

Our recent success in expanding that product line into untapped markets and regions also underscore our dedication to broadening our reach and solidifying our position as an industry leader. Moreover, our operational initiatives are geared towards enhancing efficiency and responsiveness, exemplified by the ongoing rationalization of our global footprint by streamlining operations. We not only boost our competitive edge, but also strengthen our ability to cater to our customers' needs with a keen focus on industrial marine technology sectors, and particularly those with a hybrid centric focus, we are poised to capitalize capitalize on emerging opportunities and further augment our portfolio. In closing, our unwavering dedication to innovation, operational excellence and strategic partnerships will continue to drive our success and deliver value to all our stakeholders.

我們最近成功地將產品線擴展到未開發的市場和地區，這也突顯了我們致力於擴大我們的業務範圍並鞏固我們作為行業領導者的地位。此外，我們的營運措施旨在提高效率和回應能力，透過簡化營運不斷合理化我們的全球足跡就是例證。我們不僅提高了競爭優勢，而且還加強了滿足客戶需求的能力，重點關注工業海洋技術領域，特別是那些以混合為中心的領域，我們準備充分利用新興機會並進一步發展擴大我們的投資組合。最後，我們對創新、卓越營運和策略合作夥伴關係的堅定不移的奉獻精神將繼續推動我們的成功，並為所有利害關係人創造價值。

With that, I will 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, and good morning, everyone. We delivered sales of $74.2 million for the quarter, up $389,000 or 50 basis points from the prior year period as overall demand remained solid. Net income attributable to Twin Disc for the third quarter was $3.8 million, or $0.27 per diluted share compared to $3.3 million or $0.24 per diluted share in the third quarter of fiscal 2023.

謝謝約翰，大家早安。由於整體需求仍然強勁，本季我們的銷售額為 7,420 萬美元，比去年同期增長了 389,000 美元，即 50 個基點。第三季 Twin Disc 淨利為 380 萬美元，即稀釋後每股收益 0.27 美元，而 2023 財年第三季歸屬於 Twin Disc 的淨利潤為 330 萬美元，即稀釋後每股收益 0.24 美元。

Gross profit margin increased to 28.2% compared to 26.1% during the prior year period. And gross profit increased 8.7% to $20.9 million. This improvement reflects the realization of previous price increases, continued easing of supply chain headwinds and successfully executing our operational playbook. Marine and propulsion systems reported 3% growth, while land-based transmission and industrial sales reporting to over sales declines of 3% and 15% respectively.

毛利率由去年同期的26.1%增至28.2%。毛利成長 8.7%，達到 2,090 萬美元。這項改善反映了先前價格上漲的實現、供應鏈阻力的持續緩解以及我們營運策略的成功執行。船舶和推進系統成長了 3%，而陸基傳輸和工業銷售則分別下降了 3% 和 15%。

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 the proportion of sales in North American markets declined. We also saw a notable increase in sales has been the Middle East, in particular, Turkey, which drove sales up $2.2 million year over year with increased best sales for offshore wind projects. We continued to strengthen our balance sheet and solid cash generation delivered in the third quarter.

從各地區的收入分佈來看，在強勁需求的支持下，亞太和歐洲地區的銷售額與前一年相比持續成長。而北美市場的銷售比例則有所下降。我們也看到中東地區的銷售額顯著成長，尤其是土耳其，其中離岸風電專案的最佳銷售額增加，銷售額年增 220 萬美元。我們持續加強第三季的資產負債表和穩健的現金產生。

We reduced debt by $24.1 million to negative $6.8 million compared to the prior year period and ended the quarter with a cash balance of $23.8 million, approximately $9.8 million higher versus the prior year period. EBITDA remained strong at $7 million compared to the same amount during the prior year period. We continue to decrease our leverage ratio this quarter to negative 0.3 times, putting us in an excellent position to invest in our business while executing inorganic growth opportunities.

與去年同期相比，我們的債務減少了 2,410 萬美元，達到負 680 萬美元，本季末現金餘額為 2,380 萬美元，比去年同期增加了約 980 萬美元。與去年同期相比，EBITDA 依然強勁，達到 700 萬美元。本季我們持續將槓桿率降低至負 0.3 倍，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 third quarter increased to 28.2%, expanding approximately 210 basis points from the prior year period against these cost reduction initiatives and the impacts of operational efficiencies.

如前所述，在這些成本削減措施和營運效率的影響下，第三季毛利率增至 28.2%，比去年同期成長約 210 個基點。

Looking towards the fourth quarter, we expect challenging year-over-year comparisons due to the historically strong results delivered in the prior year period. That said, we do anticipate continued strength in margins and cash generation.

展望第四季度，由於去年同期交付的歷史性強勁業績，我們預期年比比較將面臨挑戰。也就是說，我們確實預期利潤率和現金產生將持續強勁。

Now on to capital allocation, with our solid balance sheet strengthened by ample cash generation and continue to explore strategic opportunities for M&A, particularly in growth areas that align with our vision for the future. Our focus on marine technology, industrial and the hydroelectric sector underscores the dedication to staying at the forefront of innovation, and these areas present significant upside potential and complement our existing capabilities and expertise.

現在進行資本配置，充足的現金產生增強了我們穩健的資產負債表，並繼續探索併購的策略機會，特別是在符合我們未來願景的成長領域。我們對海洋技術、工業和水力發電領域的關注凸顯了我們致力於保持創新前沿的決心，這些領域具有巨大的上升潛力，可以補充我們現有的能力和專業知識。

Simultaneously, we are allocating capital towards internal investments aimed at driving organic growth and operational excellence. This includes substantial investments in R&D to foster innovation, expansion into new geographic markets to capitalize on emerging opportunities and the continued strengthening of our marketing efforts to drive market penetration. Furthermore, we remain committed to consistently returning capital to shareholders through share repurchases and dividend payments. Overall, our capital allocation strategy reflects a balanced approach aimed at driving sustainable growth and fostering innovation while maintaining financial prudence and flexibility.

同時，我們正在將資金分配給旨在推動有機成長和卓越營運的內部投資。這包括對研發進行大量投資以促進創新、擴展到新的地域市場以利用新興機會以及持續加強我們的行銷工作以推動市場滲透。此外，我們仍致力於透過股票回購和股利支付持續向股東返還資本。總體而言，我們的資本配置策略體現了一種平衡的方法，旨在推動永續成長和促進創新，同時保持財務審慎和靈活性。

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. Our third quarter performance highlights our continued operational excellence marked by a notable margin expansion and robust cash generation. Our strong balance sheet, bolstered by consistent profitable growth and solid working capital management positions us favorably to navigate market uncertainties and take advantage of strategic growth opportunities.

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。我們第三季的業績凸顯了我們持續卓越的運營，其特點是利潤顯著擴張和強勁的現金產生。我們強勁的資產負債表，加上持續的獲利成長和穩健的營運資本管理，使我們能夠有利地應對市場不確定性並利用策略成長機會。

Looking ahead, we maintain our cautiously optimistic outlook driven by sustained demand dynamics are resilient amid external challenges, reaffirms our agility and adaptability in capturing market opportunities and our performance not only reflects our operational prowess, but also underscores our commitment to delivering long-term value to shareholders. I'd like to thank all of our teams for their continued hard work and dedication to supporting our business this quarter as we approach the end of the fiscal year. And we look forward to continuing our growth journey as we drive to win this forward and generate long-term value for our shareholders.

展望未來，我們維持審慎樂觀的前景，持續的需求動態在外部挑戰中具有韌性，重申了我們捕捉市場機會的敏捷性和適應性，我們的業績不僅反映了我們的營運實力，而且強調了我們對提供長期價值的承諾給股東。我要感謝我們所有的團隊在本財年即將結束之際繼續努力工作並致力於支持我們本季的業務。我們期待繼續我們的成長之旅，努力贏得這一進步並為股東創造長期價值。

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

我們準備好的演講到此結束。傑夫和我很樂意回答您的問題。

(Operator Instructions)

（操作員說明）

Simon Wong, Gabelli Funds.

Simon Wong，Gabelli 基金。

Hey, this is [Miller] filling in for Simon today. Maybe just my first question here. I guess how much of this quarter's revenue is derived from oil and gas customers. And I guess what if you break that down between new equipment consumables?

嘿，我是[米勒]今天代替西蒙。也許只是我的第一個問題。我猜本季的營收有多少來自於石油和天然氣客戶。我想如果你將其分解為新設備消耗品會怎麼樣？

Yes, it's a good question. I would say it's been a pretty normal quarter for oil and gas in terms of percentage of revenue for the quarter, doing some quick math, probably around 10% to 15% kind of evenly split between consumable and units.

是的，這是一個好問題。我想說，就石油和天然氣佔本季收入的百分比而言，這是一個相當正常的季度，快速計算一下，消耗品和單位之間的比例可能大約為 10% 到 15%。

Okay. Thanks. And then on and then maybe my second question, I guess, what are you seeing -- I guess what is the company seeing in terms of North American frac customers?

好的。謝謝。然後也許是我的第二個問題，我想，你看到了什麼——我想該公司在北美壓裂客戶方面看到了什麼？

I would say -- this is John. I'd say we've seen an uptick in the calendar year in new spare part orders and we have some limited unit going out. But I would say that -- I mean, our outlook is that will probably pick up through the rest of the calendar year, just given what's happening in the Mideast is I think we're going to see some more activity here at home as well as in Asia.

我想說——這是約翰。我想說的是，我們已經看到日曆年新備件訂單的增加，我們有一些有限的單位出去。但我想說的是——我的意思是，我們的前景可能會在今年剩下的時間裡有所好轉，考慮到中東正在發生的事情，我認為我們在國內也會看到更多的活動就像在亞洲一樣。

Okay, thanks. And then on I guess, you're working down your inventory for fiscal year 4Q '24 how should we think about inventory as a percentage of backlog from that quarter?

好的謝謝。然後我猜，您正在計算 24 年第四季的庫存，我們應該如何考慮庫存佔該季度積壓訂單的百分比？

I think it's going to keep continue to ratchet down. You know, we're not going to have a I'd say an incredible shift. I think we'll see a trajectory kind of like what we've seen in the last two quarters.

我認為它會繼續下降。你知道，我們不會發生令人難以置信的轉變。我認為我們會看到類似於過去兩個季度的軌跡。

Okay.

好的。

And then just my last question here. I guess any update on the timing of closing of the Katsa acquisition? And does the acquisition need approval from Finland's Economic Minister to close?

然後是我的最後一個問題。我想 Katsa 收購的完成時間有更新嗎？此次收購是否需要芬蘭經濟部長的批准才能完成？

Yes. So we did get that approval of the accounts and we should be closing, I would say around the end of the month within 30 to 40 days will be closed.

是的。因此，我們確實獲得了帳戶批准，我們應該關閉，我想說的是，在月底左右，30 到 40 天內將關閉。

Okay. Thank you. That's all my questions.

好的。謝謝。這就是我的所有問題。

Thank you.

謝謝。

Will Nasgovitz, Heartland.

威爾‧納斯戈維茨，《中心地帶》。

Good morning. Thanks for taking my questions and congratulations on a strong quarter, particularly in the free cash flow generation. It's great to see. I'm just curious on the industrial side, you're welcome. I'm just on industrial, I know you comment in your opening remarks, you're seeing signs of stabilization there. You had a kind of sequential pickup in broader order into some of that in the industrial bucket. Just overall thoughts on the industrial segment to be helpful.

早安.感謝您回答我的問題，並祝賀本季表現強勁，特別是在自由現金流生成方面。很高興看到。我只是對工業方面感到好奇，不客氣。我只談工業，我知道你在開場白中評論過，你看到了穩定的跡象。您可以按更廣泛的順序依序拾取工業桶中的一些物品。只是對工業領域的整體想法會有幫助。

Yeah. I would say on this past quarter has been the best order quarter on in a few quarters. And it's been broad-based as far as the lower horsepower range, both in Europe and in the US and in Australia, I would kind of be the big the big markets for us. But we've seen we've seen it pick up a little bit again, this past quarter was a much better order quarter, and we have some of the higher, you know, some of the gearboxes with electronic controls that have been on order. So again, it's looking up, but it's still we got a ways to go to get back to where we were.

是的。我想說，上個季度是幾個季度以來訂單最好的季度。就較低的馬力範圍而言，它的基礎很廣泛，無論是在歐洲、美國還是澳大利亞，我都會成為我們的大市場。但我們已經看到它再次有所回升，上個季度是一個更好的訂單季度，我們有一些更高的，你知道的，一些帶有電子控制的變速箱已經訂購。所以，它再次抬頭，但我們仍然有很長的路要走才能回到原來的位置。

Okay. And then the acquisition I recall maybe is $30 million in revenue was around that level. Can you just provide any additional perspective on just the margin profile of the company? And in the new market, either new customers or is it, just some additional color would be useful there.

好的。然後我記得收購的收入可能是 3000 萬美元，大約是這個水平。您能否就公司的利潤狀況提供任何額外的觀點？在新市場中，無論是新客戶還是新客戶，只需添加一些顏色就會很有用。

So on, I would say the margin profile, really, it kind of falls right in line with where we are, depending upon the product line. It's going to bounce around, you know, high 20s to low 30s. But it's there's so much there Will. They're going to be a great supplier for us on gears for our product that we build in the US, in the Netherlands, in Italy. And their product -- they started off as a component supplier, so they're heavily invested in very complex machining centers to do gears.

等等，我想說的是，實際上，它的利潤狀況與我們所處的位置相符，這取決於產品線。你知道，它會在 20 多歲到 30 多歲之間反彈。但威爾的事情實在太多了。他們將成為我們在美國、荷蘭和義大利生產的產品齒輪的優秀供應商。他們的產品——他們最初是一家零件供應商，所以他們大量投資於非常複雜的加工中心來製造齒輪。

They were, I would say, the last third of their life, they've been getting into the gearbox business, whether in the industrial space, some specialty marine gears, they do transfer cases for all-wheel drive military vehicles. Until recently, it was just Finland. But then again, Finland has joined NATO. They've gotten orders from Germany and Sweden. And so we see some good market expansion.

我想說，他們生命的最後三分之一，他們一直在涉足變速箱業務，無論是在工業領域，還是一些特種船用齒輪，他們都為全輪驅動軍用車輛做分動箱。直到最近，只有芬蘭。但話又說回來，芬蘭已經加入了北約。他們收到了來自德國和瑞典的訂單。因此我們看到了一些良好的市場擴張。

And again, if you look at the horsepower range where they have product and it's pretty much right on top of Twin Disc. These are all customers and markets that we understand, but they've just been so heavily focused on the European market and the Scandinavian market. So we feel that there's a real potential to bring them out into the global market. So all of our guys, whether they're in the marine business, the industrial business or the transmission business, how they're chomping at the bit to get a hold of Katsa products and introduce them to the global customers.

再說一次，如果你看看他們產品的馬力範圍，你會發現它幾乎位於雙盤之上。這些都是我們了解的客戶和市場，但他們只是非常關注歐洲市場和斯堪的納維亞市場。因此，我們認為確實有潛力將它們帶入全球市場。因此，我們所有的員工，無論是從事船舶業務、工業業務還是傳動業務，他們都在努力獲取 Katsa 產品並將其介紹給全球客戶。

Thanks for that elaboration. I guess my final one here is just going back to your opening comments, John, in the end, you forget about the Jeff, just talking about innovation, electrification, hybrid, et cetera. I'm just wondering if you could just frame for us the opportunity you've obviously steeped in know-how in traditional transmission. Can you just frame for us any perspective on the opportunity as you continue to take this technology know-how and apply to the hybrid and electrification markets? Thank you.

感謝您的詳細闡述。我想我的最後一句話只是回到你的開場白，約翰，最後，你忘記了傑夫，只是談論創新、電氣化、混合動力等等。我只是想知道您是否可以為我們描述一下您在傳統傳輸領域顯然擁有豐富的專業知識的機會。當您繼續將這項技術知識應用於混合動力和電氣化市場時，您能否為我們闡述對此機會的看法？謝謝。

Yes.

是的。

So, Will, there's a huge opportunity in, it really is in our space, OffHighway, whether it's marine or construction for our own, it's putting the package together for the OEM to help them. So we have if you think about our mechanical product, whether it's a pump drive or transmission, it's kind of the heart of hybrid you know, still allows for in ICE engine propulsion system, but then also has input for electric motor coming from a battery. And our control system is the brain and there are a lot of other parts that we put in put together in the system, the inverter, all sorts of other thing, the wiring, but it's the content of one train application. We would sell a gearbox, let's just say the $20,000. The hybrid system, you know, can be $160,000 to $200,000.

所以，威爾，在我們的 OffHighway 領域確實有一個巨大的機會，無論是我們自己的船舶還是建築，它都在為 OEM 提供幫助，以幫助他們。因此，如果您考慮我們的機械產品，無論是泵浦驅動還是變速箱，它都是混合動力的核心，您知道，仍然允許在 ICE 引擎推進系統中使用，但也有來自電池的電動馬達輸入。我們的控制系統是大腦，我們在系統中放置了很多其他部件，逆變器，各種其他東西，接線，但這是一個火車應用程式的內容。我們會賣一個變速箱，就說 2 萬美元吧。你知道，混合動力系統的價格可能是 16 萬美元到 20 萬美元。

That's a big multiplier. But again, we're relying on that OEM to be able to sell that hybrid crane for a considerable premium over a traditional crane. We look at some of the marine applications that we're doing field work quoting systems that are $500,000 to $1 million, depending upon if it's single or twin screw and just a few years ago, that would have been almost the cost of the entire vessels sold. You know, we're proving to ourselves and our customers that we have that technical logical solution. Now we're just waiting for these things to get through testing and seeing how they play out in the market if the market is willing to spend extra for this type of performance in this type of, I would say just profile as far as emissions.

這是一個很大的乘數。但同樣，我們依賴該 OEM 能夠以比傳統起重機高得多的價格出售混合起重機。我們研究了一些我們正在進行現場工作的海洋應用，報價系統的價格為 50 萬至 100 萬美元，具體取決於它是單螺桿還是雙螺桿，就在幾年前，這幾乎是整艘船的成本賣。您知道，我們正在向自己和客戶證明我們擁有技術邏輯解決方案。現在我們只是在等待這些東西通過測試，看看它們在市場上的表現如何，如果市場願意為這種類型的性能花費額外的費用，我想說的是就排放而言。

Now in some cases in California, they're mandating that some of these government funded vessels go completely electric or hybrid. So we see some wins coming up very quickly in some of the other markets, whether it's construction or other things, it's a wait and see that they're building the equipment and then seeing how well they are accepted in the market. But just to answer your question, it's a big deal. Our content can easily can go up from four to eight times pretty quickly.

現在，在加州的某些情況下，他們強制要求其中一些政府資助的船隻全部採用電動或混合動力。因此，我們看到其他一些市場很快就會取得一些勝利，無論是建築還是其他方面，都在等待，看看他們正在建造設備，然後看看它們在市場上的接受程度如何。但只是回答你的問題，這是一件大事。我們的內容可以輕易地快速增加四到八倍。

Well, thanks for that elaboration. And again, congrats on the great quarter and best of luck on your fourth quarter. Thanks for your time.

嗯，謝謝你的詳細闡述。再次恭喜這個偉大的季度，祝你第四季度好運。謝謝你的時間。

Thanks, Will.

謝謝，威爾。

That concludes our Q&A session, but I will now turn the conference back over to John Batten for closing remarks.

我們的問答環節到此結束，但現在我將把會議轉回約翰·巴頓 (John Batten) 致閉幕詞。

So thanks, Alex. Again, we'd like to thank you for participating in our Q3 call and look forward to speaking with you in August for our Q4 and fiscal year end '24 conference call. Thank you, everyone.

所以謝謝，亞歷克斯。我們再次感謝您參加我們的第三季電話會議，並期待在 8 月與您一起參加我們的第四季和 24 財年末電話會議。謝謝大家。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。