Vertiv Holdings Co (VRT) 2020 Q1 法說會逐字稿

Good morning. My name is Nick, and I will be your conference operator today. At this time, I'd like to welcome everyone to Vertiv's First Quarter 2020 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded. I'd now like to turn the program over to your host for today's conference call, Ms. Lynne Maxeiner, Vice President of Investor Relations. Please go ahead.

早安.我叫尼克，今天我將擔任你們的會議接線生。在此，我謹代表Vertiv公司歡迎各位參加2020年第一季財報電話會議。（操作說明）請注意，本次活動正在錄影。現在，我將把主持今天的電話會議的主持人交給投資者關係副總裁琳恩·馬克西納女士。請繼續。

Thank you, Nick. Good morning, and welcome to Vertiv's First Quarter 2020 Earnings Conference Call. Joining me today are Vertiv's Executive Chairman, David Cote; Chief Executive Officer, Rob Johnson; Chief Financial Officer, David Fallon; and Chief Strategy and Development Officer, Gary Niederpruem.

謝謝你，尼克。早安，歡迎參加Vertiv 2020年第一季財報電話會議。今天與我一同出席的有 Vertiv 的執行董事長 David Cote；執行長 Rob Johnson；財務長 David Fallon；以及首席策略與發展長 Gary Niederpruem。

Before we begin, I would like to point out that during the course of this call, we will make forward-looking statements regarding future events including the future financial and operating performance of Vertiv. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. We refer you to the cautionary language included in today's earnings release, and you can learn more about these risks in our registration statement, our proxy statement and other filings with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

在開始之前，我想指出，在本次電話會議期間，我們將對未來事件做出前瞻性陳述，包括 Vertiv 未來的財務和營運績效。這些前瞻性陳述存在重大風險和不確定性，可能導致實際結果與前瞻性陳述中的結果有重大差異。我們建議您參閱今天發布的收益報告中的警示性語言，您可以在我們的註冊聲明、委託書以及向美國證券交易委員會提交的其他文件中了解更多關於這些風險的信息。我們今天所作的任何前瞻性陳述都是基於我們認為截至目前為止合理的假設。我們不承擔因新資訊或未來事件而更新這些聲明的義務。

During this call, we will also present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and in the investor slide decks found on our website at investors.vertiv.com.

在本次電話會議中，我們也將介紹 GAAP 和非 GAAP 財務指標。我們的 GAAP 業績以及 GAAP 與非 GAAP 的調整表可以在我們的獲利新聞稿和投資者簡報中找到，這些簡報可以在我們的網站 investors.vertiv.com 上找到。

With that, I'll turn the call over to Executive Chairman, David Cote.

接下來，我將把電話交給執行主席大衛·科特。

Thanks, and good morning, everyone. I want to welcome you to the Vertiv investor call to announce our Q1 2020 results. Before I turn it over to Rob Johnson, I want to begin with a few opening remarks. As we spoke last time, and as many of you know, I was fortunate to be able to work for Honeywell for about 16 years. Those who invested with us made a great return. That performance was marked by consistent annual improvements in the people, processes and portfolio of the businesses that made up Honeywell. We did all the seed planting for new products, services, process improvement and other growth initiatives needed to perform well for a long time.

謝謝大家，大家早安。歡迎各位參加 Vertiv 投資者電話會議，我們將在此公佈 2020 年第一季業績。在將發言權交給羅布·約翰遜之前，我想說幾句開場白。正如我們上次談到的那樣，也正如你們許多人所知，我很幸運能夠在霍尼韋爾工作了大約 16 年。那些與我們合作的投資人獲得了豐厚的回報。霍尼韋爾的業績表現體現在其人員、流程和業務組合方面持續的年度改進。我們已經為新產品、新服務、流程改進和其他成長措施播下了種子，以確保長期良好發展。

The world is in a very different place than when we spoke a couple of months ago. But those opening remarks stay true, whether we are in a period of economic expansion or economic contraction. If you look at our success at Honeywell, it really took off after the Great Recession. And I attribute that success largely to the fact that we continue to implement an operating system, we drove technology investments, and we planted seeds even during that difficult time.

世界已經和幾個月前我們談話時大不相同了。但無論我們處於經濟擴張期或經濟收縮期，這些開場白都是正確的。看看霍尼韋爾的成功，就會發現它是在大蕭條之後才真正起飛的。而我將這項成功主要歸功於我們堅持不懈地推行作業系統，加大技術投資，即使在那段艱難時期也播下了種子。

Why do I bring it up? Because we're doing that same kind of seed planting at Vertiv. Now some of you may conflate our withdrawal of guidance even in the face of good orders growth, with the liquidity scenarios we've included, and conclude we see a serious problem looming. That would be an error. They are 2 entirely separate points. We've withdrawn guidance because we can't be sure we can ship given government shutdown of facilities for us and suppliers at various times. Additionally, our service people sometimes aren't allowed access to facilities. Our credibility matters greatly to us. And we don't want to guide to numbers we may not be able to deliver even in the face of strong orders.

我為什麼要提起這件事？因為我們在 Vertiv 也做著同樣類型的播種工作。現在，你們中的一些人可能會將我們在訂單成長良好的情況下撤回業績指引，與我們提出的流動性情景混為一談，並得出結論，我們認為存在一個嚴重的問題即將出現。那將是一個錯誤。這是兩個完全不同的觀點。由於政府曾多次關閉我們和供應商的設施，我們無法確定能否正常出貨，因此我們撤回了相關指引。此外，我們的服務人員有時甚至無法進入某些設施。信譽對我們至關重要。即使訂單強勁，我們也不想給出我們可能無法實現的目標數字。

Totally separately, we have included a couple of liquidity scenarios to demonstrate that even if sales fell to $4 billion or even in a 25% sales decline, we will be just fine. It's not a forecast, it's an attempt to make you feel comfortable that we're just fine. Combining these 2 separate points, into the erroneous conclusion that we are forecasting disaster is, well, erroneous. This time has been difficult for everyone. But it also has demonstrated how important data centers and the edge are to our society. It is clearly critical infrastructure and reaffirmation this is a good industry. We have a great position in that good industry. And even at this difficult time, we are investing in the future. Based on how we're running the business during extraordinarily difficult times, including our own customer focus while still seed planting, I am just as excited today as I was 3 months ago about our future.

另外，我們也單獨列出了幾個流動性情景，以證明即使銷售額下降到 40 億美元，或銷售額下降 25%，我們也不會有問題。這不是預測，而是為了讓您放心，我們一切都很好。將這兩點結合起來，得出我們預測災難即將發生的錯誤結論，是錯誤的。這段時間對每個人來說都很艱難。但這同時也顯示了資料中心和邊緣運算對我們社會的重要性。這顯然是關鍵基礎設施，也再次證明了這是一個前景看好的產業。我們在該行業中佔據著非常有利的地位。即使在當前困難時期，我們仍在投資未來。在如此艱難的時期，我們依然堅持以客戶為中心開展業務，同時不斷播下種子，因此，我對公司的未來依然像三個月前一樣充滿信心。

Now I'll turn over the call to Rob who can take you through the business in a little more detail. Rob?

現在我把電話交給羅布，他會更詳細地向您介紹一下業務狀況。搶？

Thank you, Dave, and welcome, everyone, today. As I said on the last call, I really value the advice that Dave has provided to the team since he's been engaged with Vertiv. And I especially appreciate his counsel now as we navigate through these pandemic times. Before I walk you through the slide, it goes without saying that we have been proactive in protecting the safety of our employees and our customers. We've implemented precautionary measures from temperature screening to increased cleaning and disinfecting of facilities to social distancing at work, just to name a few. Additionally, our service technicians have followed Vertiv's safety protocols and adhered to additional safety measures adopted at customer sites.

謝謝你，戴夫，也歡迎各位今天到場。正如我在上次通話中所說，我非常重視戴夫自加入 Vertiv 以來為團隊提供的建議。在當前疫情肆虐的時期，我特別感謝他提供的建議。在向您詳細介紹投影片之前，毋庸置疑，我們一直積極主動地保護員工和客戶的安全。我們已經採取了一系列預防措施，包括體溫篩檢、加強設施清潔消毒、保持工作場所社交距離等等。此外，我們的服務技術人員一直遵循 Vertiv 的安全規程，並遵守客戶現場採取的額外安全措施。

Safety of our Vertiv employees and our customers has been and will continue to be at the forefront of everything we do. I want to thank the Vertiv employees for their hard work during Q1 and give a shout out to the manufacturing workers and the service technicians who continue to provide products and services to our customers and conduct day-to-day business with the utmost of caution amidst COVID-19. I appreciate their steadfast commitment to Vertiv. It's their unwavering dedication that has allowed us to serve our customers, enable those customers to provide technology and vital applications to the world that they rely on more than ever. To all of our employees on the front line, I say thank you.

維迪福員工和客戶的安全一直是並將繼續是我們一切工作的首要任務。我要感謝 Vertiv 的員工在第一季度付出的辛勤努力，並特別感謝製造工人和服務技術人員，他們在 COVID-19 疫情期間，仍然盡最大努力為客戶提供產品和服務，並謹慎地開展日常業務。我讚賞他們對Vertiv的堅定承諾。正是他們堅定不移的奉獻精神，才使我們能夠服務客戶，使客戶能夠為世界提供他們比以往任何時候都更加依賴的技術和重要應用。我要對所有奮戰在第一線的員工表示感謝。

Let's take a look at the slides, starting with Slide 4. Overall, the demand side of our business was very robust in Q1 as orders were up 13% compared to the first quarter of 2019. We exited Q1 with a record high backlog of $1.6 billion, which can be attributed to cloud, colocation and telecom customers around the world who are delivering vital applications so students could be educated online, hospitals and health care facilities could function, workers could work from home and businesses experiencing a surge in demand during the stay-at-home mandate could deliver.

讓我們來看投影片，從第 4 張投影片開始。總體而言，我們業務的需求方面在第一季非常強勁，訂單量比 2019 年第一季成長了 13%。第一季末，我們的積壓訂單金額創下歷史新高，達到 16 億美元。這主要歸功於全球的雲端服務、託管服務和電信客戶，他們正在交付重要的應用程序，以便學生能夠在線接受教育，醫院和醫療機構能夠正常運轉，員工能夠在家工作，以及在居家隔離令期間需求激增的企業能夠順利交付。

On the revenue side, despite almost all of our manufacturing facilities being up and running, we have been deemed essential. We were still adversely impacted by COVID as many of our facilities are still dealing with some level of disruption. Additionally, Q1 of 2019 had a few large projects complete, which made a difficult comparison. In Q1, we proactively implemented cost actions to protect the business having seen and felt the impact of COVID in China before things spread to other parts of the world. These cost actions are expected to generate $60 million of benefit by the end of the year. David will address liquidity later, but we feel good about our position today and know that even under a variety of downside scenarios that Dave spoke to, we will be able to maintain our strong liquidity base.

在收入方面，儘管我們幾乎所有的生產設施都已恢復運轉，但我們仍被認定為必不可少的企業。我們仍然受到新冠疫情的不利影響，因為我們的許多設施仍然面臨一定程度的營運中斷。此外，2019 年第一季完成了一些大型項目，這使得比較變得困難。第一季度，我們在疫情蔓延到世界其他地區之前，就已經在中國感受到了新冠疫情的影響，因此我們積極採取成本控制措施來保護業務。預計這些成本控制措施將在年底前產生 6,000 萬美元的收益。David 稍後會談到流動性問題，但我們對目前的狀況感到滿意，並且知道即使在 Dave 提到的各種不利情況下，我們也能夠保持強大的流動性基礎。

[We stay close] to our customers and continually monitor and comply with directives of governments around the world as they relate to pandemic actions. This pandemic has put us and others in a position where things will remain dynamic and unpredictable over the next several months. Because of this, we are withdrawing our previous guidance. I can tell you this, however, Vertiv has been designated as an essential business. We see strong demand for our products and services. We are taking short-term and long-term actions to make sure we continue to serve our customers. We are nimble, flexible and responsive. We are ready to adapt, react and serve in ways that will be needed for today and tomorrow and in the future.

我們與客戶保持密切聯繫，並持續關注並遵守世界各國政府針對疫情採取的行動所發布的指令。這場疫情使我們和其他人處於未來幾個月局勢將持續變化且難以預測的境地。因此，我們撤回先前的指導意見。不過我可以告訴你，Vertiv 已被指定為必不可少的企業。我們看到市場對我們的產品和服務有著強勁的需求。我們正在採取短期和長期措施，以確保我們能夠繼續為客戶提供服務。我們行動敏捷、靈活且反應迅速。我們已做好準備，以適應、應對和服務今天、明天以及未來所需的各種方式。

Turning to Slide 5. There's a lot of content on this slide, so I won't hit every bullet. But we wanted to provide you with additional knowledge and deeper insight about our business. The first quarter COVID impact of $80 million was roughly 60% supply-based and 40% demand-based. On the supply side, I'm proud to tell you that all of our facilities, with the exception of a small plant in China, are back up and running. Now not all of our facilities are running at 100% because there are still many things they are struggling with: parts issues, logistics constraints, but nonetheless, we are able to operate at some level in every region.

接下來是第 5 張投影片。這張投影片的內容很多，所以我不會逐條解說。但我們希望為您提供更多關於我們業務的知識和更深入的見解。第一季新冠疫情造成的損失為 8,000 萬美元，其中約 60% 來自供應方面，40% 來自需求方面。在供應方面，我很自豪地告訴大家，除了中國的一家小型工廠外，我們所有的工廠都已恢復運作。現在，我們並非所有工廠都以 100% 的產能運轉，因為它們仍然面臨許多問題：零件問題、物流限制等等，但儘管如此，我們仍然能夠在各個地區達到一定的營運水平。

The supply side is aggressively being monitored on a daily basis as issues arise. Whether it's government health inspections, supplier output, logistics and many more, there's just a myriad of obstacles that our team has to continue to overcome on a daily basis. The Vertiv team has done an outstanding job to carefully and methodically resolve these issues as they arise in places all over the globe, so we continue to supply products to our customers and assist them with their services needs.

供應方面正受到密切關注，每天都會及時發現並處理出現的問題。無論是政府衛生檢查、供應商產量、物流等等，我們的團隊每天都要克服無數的障礙。Vertiv 團隊出色地完成了工作，認真細緻地解決了世界各地出現的這些問題，因此我們能夠繼續為客戶提供產品，並協助他們滿足服務需求。

Moving on to the demand side. Certainly, the headline number of orders being up 13% is great accomplishment of the sales and marketing team. Each region grew orders substantially with EMEA leading the way at 26% year-over-year growth in Q1. The orders were largely driven by cloud, large colocation and telecommunication companies. The area where we saw softness was within the small- and medium-sized business that is served by our IT channel partners who have been adversely affected by the pandemic. As this segment of the business starts to come back, we expect to see demand continue.

接下來我們來看需求方。當然，訂單數量增加 13% 是銷售和行銷團隊的巨大成就。各地區的訂單量均大幅成長，其中 EMEA 地區以 26% 的年成長率領先第一季。這些訂單主要來自雲端運算公司、大型資料中心和電信公司。我們發現，受疫情影響較大的中小企業市場表現疲軟，而這些中小企業正是我們IT通路夥伴所服務的。隨著這部分業務開始復甦，我們預計需求將持續成長。

Turning to Slide 6. As I mentioned previously, we were in early identifying, addressing and implementing a number of different cost actions for Q1. The entire leadership team and Board of Directors took a 10% base pay cut. While this may not be new news to most of you, what you didn't know is that they volunteered to do this. I didn't even have to ask them.

翻到第 6 張投影片。正如我之前提到的，我們當時正處於識別、解決和實施第一季多項不同成本措施的早期階段。整個領導團隊和董事會成員的基本薪資都減少了10%。雖然這對你們大多數人來說可能不算什麼新鮮事，但你們不知道的是，他們是自願去做這件事的。我甚至都不用問他們。

Additionally, merit increases for employees were halted for 2020. The 401(k) match in the U.S. has been stopped, and every department has been tasked with a discretionary 15% cut. Furthermore, Dave mentioned in his opening remarks about use of furloughs, and we have implemented those across every function and every jurisdiction where it's allowed. Employees have been understanding and supportive of our efforts to utilize these measures to make sure Vertiv stays strong and financially healthy. These actions and a few others will contribute to $60 million of P&L benefit during the rest of 2020.

此外，2020年員工的績效工資成長被暫停。美國的 401(k) 退休金匹配計劃已經停止，每個部門都被要求自行決定削減 15% 的繳款。此外，戴夫在開場白中提到了休假制度，我們已經在允許的每個職能部門和每個司法管轄區實施了休假制度。員工一直理解並支持我們採取這些措施，以確保 Vertiv 保持強勁的實力和健康的財務狀況。這些措施以及其他一些措施將在 2020 年剩餘時間內帶來 6,000 萬美元的損益收益。

We are also being aggressive on the revenue side. Our sales and service teams are strengthening ties with the customer, providing updates and reassurances to them regularly. We have enhanced our marketing message and increased our social media presence as we look for additional ways to reach those in need of the products and services that we provide. The selfless nature of our 19,000-plus employees is a testament to the culture of the organization. Our desire to be present and helpful to those who need us, our willingness to work while we battle COVID-19, I am proud of the way Vertiv and its team have acted and reacted to all the unknowns we faced in Q1.

我們在營收方面也採取了積極的策略。我們的銷售和服務團隊正在加強與客戶的聯繫，並定期向他們提供最新資訊和保固。我們加強了行銷訊息傳遞，並增加了社群媒體影響力，以尋找更多途徑來接觸那些需要我們產品和服務的人。我們19,000多位員工的無私奉獻精神，正是公司文化的最佳體現。我們渴望在需要我們的人身邊提供幫助，我們願意在與 COVID-19 抗爭的同時繼續工作，我為 Vertiv 及其團隊在第一季度面對所有未知情況時的行動和反應感到自豪。

With that, I'll turn it over to David Fallon to give a deeper dive into the (inaudible).

接下來，我將把麥克風交給大衛法倫，讓他更深入地探討（聽不清楚）。

Thanks, Rob. Turning to Slide 7. This page provides a summary of our debt structure and our current and expected future liquidity. Starting on the left-hand side, we remind investors that we were able to time the SPAC transaction and debt refinancing quite well with neither likely available to us in this current market environment. However, as a result, we possess a rather simple long-term debt structure with a $2.2 billion term loan maturing in 2027, with $1 billion at a variable rate, currently at 3.4% and $1.2 billion swapped to a fixed rate of 4.1%, resulting in a relatively modest annual cash interest run rate of less than $90 million, which is inclusive of interest on our $455 million asset-based lending facility or our ABL.

謝謝你，羅伯。請看第 7 頁投影片。本頁概述了我們的債務結構以及我們當前和預期的未來流動性。從左側開始，我們提醒投資者，我們能夠很好地掌握 SPAC 交易和債務再融資的時機，而這兩項在當前的市場環境下我們都不太可能獲得。然而，因此，我們擁有一個相當簡單的長期債務結構，其中包括一筆將於 2027 年到期的 22 億美元定期貸款，其中 10 億美元為浮動利率，目前為 3.4%，另外 12 億美元已轉換為 4.1% 的固定利率，從而導致相對適中的年度現金運行率低於 9000 萬美元的抵押貸款（5A.5A.

Now counterparties to our ABL are all large, well-known, reputable banks. Hence, we believe there is little counterparty risk related to credit in our ABL. Our term loan contains no financial maintenance covenants, and our ABL contains only one springing financial maintenance covenant if our availability falls below $45.5 million or 10% of the total facility. The springing financial maintenance covenant is a fixed charge coverage ratio that must be greater than 1 and which was at 3.7 at the end of March. Hence, we believe there is minimal risk of violating this covenant even under significant downside scenarios.

現在，我們資產抵押貸款的交易對手都是規模龐大、聲名顯赫、信譽良好的銀行。因此，我們認為我們的資產抵押貸款中與信用相關的交易對手風險很小。我們的定期貸款不包含任何財務維持條款，而我們的資產抵押貸款僅包含一項觸發式財務維持條款，即當我們的可用資金低於 4550 萬美元或總授信額的 10% 時生效。觸發式財務維護契約是一項固定費用覆蓋率，該比率必須大於 1，截至 3 月底為 3.7。因此，我們認為即使在重大不利情況下，違反該契約的風險也極低。

The right-hand side of this page summarizes our liquidity, a strong $446 million at the end of the first quarter including $289 million of nonrestricted cash and $157 million available on our ABL. We will review the components of negative free cash flow in the first quarter in a few slides. But $100 million of that use of cash was pursuant to discrete payments related to the SPAC transaction and cash interest, which will not recur going forward. We continue to expect positive free cash flow for the full year including slightly negative in the second quarter and significantly positive in the third and fourth quarters. This projected quarterly cash flow cadence is consistent with prior years, as we generally use cash in the first quarter and second quarter free cash flow is generally somewhat modest due to lower collections from lighter seasonal first quarter sales. Normally, a large percentage of our full year free cash flow is generated in the second half of the year.

本頁右側總結了我們的流動性，截至第一季末，我們的流動性強勁，達到 4.46 億美元，其中包括 2.89 億美元的非限制性現金和 1.57 億美元的可用資產抵押貸款。我們將用幾張投影片回顧第一季負自由現金流的構成要素。但其中 1 億美元的現金用途是根據與 SPAC 交易相關的特定款項和現金利息，未來不會再發生此類情況。我們繼續預期全年自由現金流為正，其中第二季略微為負，第三季和第四季顯著為正。這種預期的季度現金流節奏與往年一致，因為我們通常在第一季使用現金，而第二季的自由現金流通常比較溫和，這是由於第一季季節性銷售疲軟導致收款減少所致。通常情況下，我們全年自由現金流的很大一部分是在下半年產生的。

We feel quite good about our liquidity projections, even under unlikely significant downside scenarios. For example, even if sales are modeled to decline an improbable 25% from last year. And as Dave mentioned at the outset and just for avoidance of doubt, we provide this illustrative downside scenario simply to demonstrate confidence in our liquidity and not as any form of directional guidance. But even under this extreme scenario, our projected liquidity low point in 2020, still does not drop below $300 million, as lower adjusted EBITDA is partially offset by a recovery of working capital, which runs at about 22.5% of sales.

即使在不太可能出現的重大下行情境下，我們對自身的流動性預測也相當有信心。例如，即使銷售額預計比去年下降 25%（這種情況不太可能發生）。正如戴夫在開頭提到的那樣，為了避免任何疑慮，我們提供這個示例性的下行情景僅僅是為了表明我們對自身流動性的信心，而不是作為任何形式的方向性指導。但即使在這種極端情況下，我們預計 2020 年的流動性低點也不會低於 3 億美元，因為調整後的 EBITDA 下降會被營運資本的恢復部分抵消，營運資本約佔銷售額的 22.5%。

And for further clarity, this $300 million low point is not a year-end liquidity figure, but this would be projected to occur at some point intra-month in the fourth quarter, as our liquidity ebbs and flows intra-quarter, but is generally highest at each quarter and year-end. In addition, under this and any significant downside sales scenario, our liquidity is also negatively impacted by lower collateral on the ABL as lower sales reduce eligible accounts receivable supporting the borrowing base. Of course, this modeling scenario also assumes that customers continue to pay amounts owed to us in a timely manner, and we pay suppliers similarly.

為了更清楚地說明，這 3 億美元的低點並不是年末流動性數字，而是預計在第四季度某個月份內出現的低點，因為我們的流動性在季度內會波動，但通常在每個季度和年末達到最高點。此外，在這種及任何重大銷售下滑的情況下，由於銷售額下降導致符合條件的應收帳款減少，從而影響了借款基礎，因此我們的流動性也會受到 ABL 抵押品減少的負面影響。當然，這種建模方案也假設客戶會繼續準時支付欠我們的款項，我們也同樣會準時向供應商付款。

As of today, we have not experienced any significant collection issues. In addition, our modeling does not assume the benefit of any additional cost actions, which certainly would be likely in a significant sales downturn nor does this scenario include the benefit of any potential additional liquidity actions, including contractually extending supplier payment terms, establishing local lines of credit or even though we do not foresee a dire need at this point, opportunistically accessing debt financing markets.

截至目前，我們尚未遇到任何重大收款問題。此外，我們的模型並未假設任何額外的成本控制措施帶來的好處，而這在銷售額大幅下滑的情況下肯定會發生；該模型也未考慮任何潛在的額外流動性措施帶來的好處，包括延長供應商的付款期限、建立本地信貸額度，或者即使我們目前沒有預見到迫切需要，也可以抓住機會進入融資市場。

Next slide, turning to Slide 8. This page summarizes our first quarter financial results versus last year's first quarter. Net sales were down $158 million or 15%, including approximately $80 million due to COVID-19 and $19 million from unfavorable changes in foreign exchange rates, as most global currencies weakened versus the U.S. dollar in the first quarter. The remaining $59 million reduction was anticipated heading into the quarter, primarily driven by large projects in last year's first quarter, predominantly in Americas and EMEA.

下一張投影片，請看第 8 張投影片。本頁總結了我們第一季的財務表現與去年第一季的比較。淨銷售額下降 1.58 億美元，降幅達 15%，其中約 8,000 萬美元是由於 COVID-19 疫情造成的，1,900 萬美元是由於外匯匯率不利變化造成的，因為第一季大多數全球貨幣對美元走弱。剩餘的 5,900 萬美元減少額在季度初就已預料到，主要原因是去年第一季的大型項目，這些項目主要集中在美洲和歐洲、中東及非洲地區。

Adjusted EBITDA declined $40 million from last year due to the lower top line, and partially offset by lower fixed costs from prior year restructuring activity. Adjusted EBITDA margin declined 260 basis points primarily due to the lower leverage of fixed costs. And to the far right, free cash flow declined $158 million from last year's first quarter, including $100 million combined due to discrete payments pursuant to the SPAC transaction and cash interest that will not recur going forward. We will provide a more fulsome explanation of changes in free cash flow in just a couple of slides.

由於營收下降，調整後 EBITDA 比去年減少了 4,000 萬美元，部分被上一年重組活動帶來的固定成本降低所抵銷。調整後 EBITDA 利潤率下降 260 個基點，主要是因為固定成本槓桿作用降低。最右側數據顯示，自由現金流較去年第一季減少了 1.58 億美元，其中包括因 SPAC 交易而產生的一次性付款和未來不會再發生的現金利息合計減少了 1 億美元。我們將用幾張投影片更全面地解釋自由現金流的變化。

Finally, on this slide, we include a note at the bottom explaining that pursuant to our debt refinancing at the beginning of March, where we raised the new term loan and concurrently paid off several high interest rate notes, we recognized $174 million loss on extinguishment of debt. $99 million of this loss was a noncash write-off of deferred financing fees and $75 million was a cash payment for the early redemption of the notes. Neither of these items is included in adjusted EBITDA and the cash payment for early redemption or the $75 million is included in financing activities in the statement cash flow.

最後，在本投影片的底部，我們添加了一條註釋，解釋說，根據我們在 3 月初進行的債務再融資，我們籌集了新的定期貸款，並同時償還了幾筆高利率票據，我們確認了 1.74 億美元的債務清償損失。這筆損失中有 9,900 萬美元是遞延融資費用的非現金沖銷，7,500 萬美元是提前贖回票據的現金支付。這兩個項目均未計入調整後的 EBITDA，提前贖回的現金支付或 7,500 萬美元計入現金流量表中的融資活動。

Next, turning to Slide 9. This page summarizes our first quarter segment results. I won't delve into the details, but COVID-19 certainly negatively influenced each of the 3 regions. We disclosed the top line impact for each region on Page 5 of this presentation, including $50 million of the $80 million in APAC, as China was virtually shut down in February. However, excluding the impact of COVID-19 and adjusted for $8 million of foreign exchange, APAC sales actually increased $23 million from last year's first quarter primarily on the strength of telecom and larger colocation and hyperscale customers. Net sales in the other 2 regions were down from prior year, even excluding COVID-19 and foreign exchange primarily driven by several larger projects that shipped in the first quarter of 2019. Lower adjusted EBITDA and EBITDA -- adjusted EBITDA margin in each region was primarily driven by lower year-over-year net sales.

接下來，請看第 9 頁投影片。本頁總結了我們第一季的分部業績。我不打算深入探討細節，但新冠疫情無疑對這三個地區都產生了負面影響。我們在本次簡報的第 5 頁披露了各地區的主要影響，其中包括亞太地區 8,000 萬美元中的 5,000 萬美元，因為中國在 2 月幾乎完全停擺。然而，若不計 COVID-19 的影響，並扣除 800 萬美元的外匯影響，亞太地區的銷售額實際上比去年第一季增加了 2,300 萬美元，這主要得益於電信、大型託管和超大規模客戶的強勁增長。其他兩個地區的淨銷售額較上年同期有所下降，即使不考慮 COVID-19 和匯率波動的影響，主要原因是 2019 年第一季度交付了幾個較大的項目。各地區調整後 EBITDA 和 EBITDA - 調整後 EBITDA 利潤率下降，主要是淨銷售額年減所致。

Next, turning to Slide 10. This chart bridges first quarter free cash flow from last year. While we have historically used cash in the first quarter, free cash flow this year was further negatively impacted by lower sales from COVID-19, which significantly contributed to the $41 million increase in inventory and a $40 million reduction in adjusted EBITDA. In addition, cash interest in this year's first quarter was actually $33 million higher than last year, as we accelerated accrued interest payments on the notes we paid off pursuant to the debt refinancing. And we were also negatively impacted by the timing of interest payments on the former term loan.

接下來，請看第 10 張投影片。這張圖表比較了去年同期第一季的自由現金流。雖然我們歷來都會在第一季使用現金，但今年的自由現金流受到 COVID-19 疫情導致的銷售額下降的進一步負面影響，這導致庫存增加了 4,100 萬美元，調整後的 EBITDA 減少了 4,000 萬美元。此外，由於我們加快了根據債務再融資償還的票據的應計利息支付，今年第一季的現金利息實際上比去年同期高出 3,300 萬美元。我們也受到了先前定期貸款利息支付時間表的負面影響。

Of course, on a go-forward basis, our quarterly cash interest will be significantly reduced as reflected by the $79 million run rate adjustment in the green bar farthest to the right. First quarter free cash flow was also negatively impacted by $21 million of discrete costs pursuant to the SPAC transaction.

當然，從長遠來看，我們的季度現金利息將大幅減少，如最右側綠色長條圖中 7,900 萬美元的運行率調整所示。第一季自由現金流也受到SPAC交易產生的2,100萬美元一次性成本的負面影響。

So in summary, on a pro forma run rate basis, we used about $103 million of free cash flow in the first quarter with approximately $80 million directly or indirectly attributable to COVID-19. And despite this negative free cash flow in the first quarter, we still expect significantly positive free cash flow for the full year.

綜上所述，以備考運行率計算，我們在第一季使用了約 1.03 億美元的自由現金流，其中約 8,000 萬美元直接或間接歸因於 COVID-19。儘管第一季自由現金流為負，但我們仍然預期全年自由現金流將顯著為正。

And with that said, I turn it back over to Rob.

說完這些，我把麥克風交還給羅布。

Thanks, David. As we turn to Slide 11, it's important to communicate the fact that our critical digital infrastructure is more necessary now than ever before because of the world's growing need and dependency on vital applications. While we remain cautiously optimistic on the balance of the year, the dynamic nature of the situation makes it extremely difficult to provide guidance at this time. We do feel good about the demand side, and we believe the volatility of this supply chain will moderate over time, but it's not possible at this time to be able to peg a number for 2020.

謝謝你，大衛。當我們翻到第 11 張投影片時，必須強調的是，由於世界對重要應用程式的需求和依賴日益增長，我們關鍵的數位基礎設施比以往任何時候都更加必要。儘管我們對今年剩餘時間仍持謹慎樂觀態度，但鑑於情況瞬息萬變，目前很難給出明確的指導。我們對需求方面感到樂觀，並相信供應鏈的波動性會隨著時間的推移而緩和，但目前還無法預測 2020 年的具體數字。

What I can share, however, is internally, we have run multiple scenarios, as discussed earlier, and sensitivity analysis. And even in the most aggressive downside case, with sales at $4 billion, we would still be in a position to deliver approximately $500 million in adjusted EBITDA. Clearly, additional cost actions would be taken, which we have, but those actions have been identified and are realistic from a timing and savings standpoint. I provide these numbers as a reference point, but have no reason at this time to believe we will see sales fall this far. We are always preparing for every ever-changing scenario.

不過我可以透露的是，正如之前討論過的，我們在內部已經進行了多種情境模擬和敏感性分析。即使在最樂觀的下行情況下，銷售額為 40 億美元，我們仍然能夠實現約 5 億美元的調整後 EBITDA。顯然，我們需要採取額外的成本控制措施，我們也確實採取了這些措施，但這些措施已經確定，並且從時間和節省成本的角度來看都是切實可行的。我提供這些數字作為參考，但目前沒有任何理由相信銷售額會下降到這種程度。我們隨時準備好應對各種不斷變化的情況。

Now turning to Slide 12 and in closing. I want to thank you for your support over the past quarter and in the quarters to come. We participate in a great industry, as Dave said. We have the leadership and position and never has critical digital infrastructure to support the vital applications of the world been so important as it is now. Our order rate, our cost actions we've implemented, our liquidity position are all in great shape as we continue operating during this dynamic time. We will continue to invest, as Dave said, for the future while managing for today. This strategic approach will prepare us to be even more successful when we emerge from this pandemic and the world adapts to a new normal. Thank you again for your support. Stay healthy.

現在請看第 12 張投影片，也是最後總結。我要感謝您在過去一個季度以及未來幾個季度給予的支持。正如戴夫所說，我們身處一個偉大的行業。我們擁有領導地位和市場地位，而支持世界重要應用的關鍵數位基礎設施從未像現在這樣重要。在當前這個瞬息萬變的時期，我們繼續運營，我們的訂單率、我們實施的成本控制措施以及我們的流動性狀況都處於良好狀態。正如戴夫所說，我們將繼續投資未來，同時也要兼顧當下。這種策略方法將使我們能夠在走出這場疫情、世界適應新常態後取得更大的成功。再次感謝您的支持。保持健康。

I now turn the call over to the operator who will open the line up for questions.

現在我將電話轉交給接線員，由他/她接通線路回答問題。

(Operator Instructions) First question comes from Nicole DeBlase of Deutsche Bank.

（操作員說明）第一個問題來自德意志銀行的妮可·德布萊斯。

Maybe we could start with the cost savings. So the $60 million that you guys are targeting, it seems to me that these are kind of all incremental actions relative to the medium-term margin expansion plan that you've laid out. So maybe you could talk about the temporary versus structural nature of the cost savings. It seems to me like these are all temporary, and they will come back when demand resumes. And maybe the ability to pull some of the medium-term cost items that you guys are working through into 2020 as demand is weak.

或許我們可以先從節省成本著手。所以，你們設定的 6,000 萬美元目標，在我看來，都算是相對於你們所製定的中期利潤率擴張計畫而言的漸進式舉措。所以或許你可以談談成本節約的暫時性和結構性。在我看來，這些都是暫時的，當需求恢復時，它們就會回來。或許你們可以將一些正在努力解決的中期成本項目推遲到 2020 年，因為需求疲軟。

Yes. So Nicole, this is Rob. What I would tell you is they're not costs that we expect to come back into the business when we return back to work. These are costs, and we'll realize, as I mentioned in my comments, we'll benefit from these actions. Whether they're furloughs, whether they're merit increases, whether it's the discretionary expense decrease. So we fully expect to realize these costs and see them hit the bottom line throughout the quarter.

是的。妮可，這位是羅伯。我想告訴大家的是，這些成本我們預計在復工後不會再重新投入業務。這些都是成本，正如我在評論中提到的，我們會意識到，我們將從這些行動中受益。無論是暫時停薪留職、績效加薪，或是酌情削減開支。因此，我們完全預期這些成本將在本季內計入最終利潤。

We have -- and you are correct, we continue to operate on what we've talked about in the past. The other levers for margin expansion, utilizing the Vertiv operating system as a utilization to increase and better our margin profile and all of the other fixed cost constant things. Everything we've talked about, that's separate to the $60 million. This was really in addition. And as Dave Fallon mentioned, there are additional levers that we can pull if necessary, if we see demand or changes in the environment. David Fallon, any other thoughts?

沒錯，我們一直按照過去討論過的方式行事。其他擴大利潤率的槓桿，利用 Vertiv 作業系統來提高和改善我們的利潤率狀況，以及所有其他固定成本不變的因素。我們討論的所有內容都與那 6000 萬美元無關。這確實是額外的。正如戴夫法倫所提到的那樣，如果出現需求變化或環境變化，我們還可以採取其他措施。大衛法倫，還有其他想法嗎？

If I could interject a bit. You are a bit right there, though, Nicole. I mean once volume comes back, yes, people will expect merit increases, we'll return the 401(k), that sort of thing. But as Rob points out, these are very real cost savings this year. So we will get those. And some of those costs only come back if the volume really comes back. And independent of that, I guess, somewhat complementary to it, to Rob's point, we're still working all our plans to keep fixed costs constant as we go forward. So I put all that together and say, this is a smart thing for us to be doing right now and helps us to achieve everything that we've talked about. But at the same time, we want to be prepared for the future. And as volume comes back, which we suspect it's going to, given everything we see in our industry, and we think it's actually going to be pretty darn good, yes, some of that may come back, but it's only going to come back with volume that's in that 45% contribution margin range.

如果我可以插一句的話。妮可，你說的話也有幾分道理。我的意思是，一旦業務量恢復，是的，人們會期望獲得績效加薪，我們會恢復 401(k) 計劃，諸如此類的事情。但正如羅布指出的那樣，這些確實是今年實實在在的成本節約。所以我們會收到這些。而其中一些成本只有在銷售真正恢復後才能收回。除此之外，我想，也算是羅布觀點的一種補充，我們仍在努力製定所有計劃，以保持固定成本不變。所以我把所有這些因素綜合起來，並認為這是我們現在應該做的一件明智的事情，它有助於我們實現我們討論過的所有目標。但同時，我們也希望為未來做好準備。隨著銷量回升（鑑於我們行業內的一切情況，我們懷疑銷量會回升，而且我們認為銷量實際上會相當不錯），是的，部分利潤可能會回升，但只有當銷量達到 45% 的貢獻毛利率範圍時，利潤才會回升。

Got it. That's really helpful. And then can we also maybe dig in a little bit to what you guys are seeing in April? Most companies have been willing to comment on that a little bit just because we don't really have a ton of visibility sitting here with what you guys are seeing in the early stages of this in North America and Europe. Is that something that you're willing to give some color on?

知道了。這真的很有幫助。那麼，我們能否也稍微深入探討一下你們在四月看到的情況呢？大多數公司都願意對此發表一些評論，因為我們目前對北美和歐洲早期階段的情況了解不多。你願意就此透露一些細節嗎？

Yes. This is Rob. Just at a high level, what I would tell you, we expect throughout Q1, April, to see orders continue in a growth trajectory. And then we expect to see some impact from the COVID and from our ability to deliver. We don't have exact numbers, we really don't know. And again, as we mentioned, we're battling every day all around the world to make sure we can supply, keep our factories open, sub-suppliers. So I would just say that we expect orders to continue to be favorable, and we expect to have some COVID impact as we go through Q2, like most other companies have suggested.

是的。這是羅布。總的來說，我可以告訴大家，我們預計在第一季度，也就是四月份，訂單將繼續保持成長勢頭。然後我們預計新冠疫情以及我們的交付能力會受到一些影響。我們沒有確切的數字，我們真的不知道。正如我們之前提到的，我們每天都在世界各地努力奮鬥，以確保我們能夠供應產品，保持工廠運轉，並支持我們的分包商。因此，我想說的是，我們預計訂單狀況將繼續保持良好勢頭，並且我們預計在第二季度會受到新冠疫情的一些影響，就像大多數其他公司所預測的那樣。

And when you say favorable, do you mean orders are still up year-on-year versus like -- versus the 1Q order growth?

您說的「有利」是指訂單量仍同比成長，還是與第一季的訂單成長相比？

Yes.

是的。

Your next question comes from Mark Delaney of Goldman Sachs.

你的下一個問題來自高盛的馬克·德萊尼。

Was just hoping the company could discuss the demand environment, both in terms of how the first quarter closed and if any business slipped out compared to what the company had been expecting when it held its last earnings call in March. But maybe more importantly, given the record backlog and based on what management knows today, is Vertiv still expecting a pickup in 2H '20 sales compared to 1H '20 on a qualitative basis?

我只是希望公司能夠討論一下需求環境，包括第一季的收官情況，以及與公司在3月份召開上次財報電話會議時的預期相比，是否有任何業務下滑。但或許更重要的是，鑑於創紀錄的積壓訂單以及管理層目前所掌握的信息，Vertiv 是否仍然預期 2020 年下半年的銷售額會比 2020 年上半年有所增長（從質量上看）？

Mark, Rob here again. A couple of comments there. We did see -- to answer your first question, we did see some pushouts, basically access to sites happen, in the combination of not being able to fulfill orders or pushouts because of site access or areas being shut down, for example, like Singapore today is. We do expect, and this has been consistent with what we've talked about since the beginning, that the second half would be an upside for us. Now again, given COVID, no one can predict how long the thing will last and when every country will be back to work. But the expectations are that the second half will be an up path as we said in the past.

馬克，我是羅布。有幾點要說明。回答你的第一個問題，我們確實看到了一些推送，基本上是網站訪問出現問題，可能是由於無法完成訂單，也可能是由於網站訪問或某些地區關閉而導致的推送，例如像今天的新加坡那樣。我們預計（這與我們從一開始就討論過的情況一致），下半年對我們來說將是有利的。現在，鑑於新冠疫情的影響，沒有人能夠預測疫情會持續多久，以及各國何時才能恢復正常運作。但正如我們之前所說，預計下半年將會好轉。

Got it. That's helpful. And then my second question, I just wanted to better understand one of the comments in the press release. I think the company talked about a stable demand environment, but also orders were up 13% year-over-year. So I'm just trying to better reconcile some of the commentary, some of the puts and takes in orders that the company is seeing and just kind of better understand stable relative to the order growth that was reported.

知道了。那很有幫助。我的第二個問題是，我只是想更好地理解新聞稿中的一條評論。我認為該公司談到了穩定的需求環境，但訂單量也比去年同期成長了 13%。所以，我只是想更好地理解一些評論，以及公司看到的一些訂單波動，並更好地理解相對於已公佈的訂單增長而言的穩定情況。

Yes. Mark, just going through that at a high level, but hopefully give you enough color here. As we had been talking about, and I think in our last conference call, we talked about the fact that there was this digestion going on in the U.S. and we would expect in Q1 to begin to see orders pick up, specifically in the colo and hyperscale space. We saw real strength in the colo, hyperscale and telecommunications. And so that drove a lot of that, and that was what we had expected and it had happened.

是的。馬克，我只是概括地介紹一下，但希望這些內容能提供你足夠的資訊。正如我們之前討論過的，而且我認為在我們上次的電話會議上，我們談到了美國正在進行市場消化，我們預計第一季度訂單將開始回升，尤其是在託管和超大規模領域。我們看到了資料中心託管、超大規模資料中心和電信領域的強勁勢頭。因此，這推動了許多事情的發生，這也是我們所預料的，而且事情也確實發生了。

I think there were some orders. People had placed orders in advance to get in line because they want to make sure they're going to get their product. The areas which you would expect, small to medium business and enterprise during these times and the channel type business would be -- would not be on a growth trajectory right now. But again, with the products we're releasing, with our focus on that market, we fully expect when people get back to work, that we'll have recovery there.

我想應該有一些訂單。人們提前下單排隊，因為他們想確保能買到自己想要的商品。在當前情勢下，中小企業和大型企業以及通路型企業理應獲得成長，但這些領域目前並不會呈現成長態勢。但是，憑藉我們推出的產品以及我們對該市場的關注，我們完全相信，當人們重返工作崗位時，該市場將會復甦。

Okay. And then just lastly, a follow-up on the questions related to cost and SG&A dollars were a fair amount less than what I had been anticipating, and how they talked about some of those incremental savings still to come. So maybe just help us understand how to think about SG&A dollars in 2Q and throughout the year? And do those trend lower than the levels that were reported in the first quarter? Or again, some of the temporary actions that I realize will be achieved -- do some of those temporary costs start to come back in, and so OpEx dollars start to go back up compared to where we came in at for the first quarter.

好的。最後，關於成本和銷售、一般及行政費用的相關問題的後續問題，實際金額比我預期的要少得多，他們也談到了未來還將實現的一些增量節省。所以，您能否幫助我們理解如何看待第二季以及全年的銷售、管理及行政費用？這些數值是否低於第一季報告的水平？或者說，我意識到一些臨時措施將會實現——這些臨時成本是否會開始重新出現，因此營運支出是否會比第一季開始時的水平回升。

Yes. I have a couple of comments. This is Rob again, and then I'll turn it over to Dave or David. But what I would tell you is the world is going to be, I think, different. I don't -- can't predict actually even what it's going to look like. But I think we've learned to do work in a different way, which could affect some of our discretionary expenses, whether it's travel, the T&E side of things.

是的。我有幾點意見。我是羅布，接下來我會把麥克風交給戴夫或大衛。但我認為，世界將會改變。我真的無法預測它會是什麼樣子。但我認為我們已經學會了以不同的方式工作，這可能會影響我們的一些可自由支配的支出，無論是差旅費還是其他方面的費用。

So I would fully expect that -- and our team is working on new ways of doing work that are more efficient and more effective. And to give you an example, during this time, training for our sales -- for our service people, traditionally is something where we fly them in, they sit in class, and it's expensive. We've been able to do and use tools online, online testing, online classes. So we'll continue to take the efficiencies and the things we've learned during this pandemic and apply those to drive more efficiency going forward. David Fallon?

所以我完全預料到這一點——而且我們的團隊正在研究更有效率、更有效的新工作方式。舉個例子來說，在這段時間裡，我們銷售和服務人員的培訓，傳統上是讓我們把他們空運過來，讓他們坐在教室裡上課，這很昂貴。我們已經能夠使用各種線上工具、線上測試和線上課程。因此，我們將繼續利用疫情期間累積的效率來提升經驗和知識，並將它們應用於未來的工作中，以提高效率。大衛法倫？

Sure. And just some further detail on that $60 million, probably about 70% of that will impact SG&A. So a good portion of the cost actions that we put in place will benefit SG&A going forward. And I think some of the drivers of the lower year-over-year SG&A in 1Q versus the first quarter last year will continue going forward. We were able to put in place some restructuring activity last year, which we will benefit from in each quarter going forward.

當然。關於這 6,000 萬美元，還有一些細節需要補充，其中約 70% 將影響銷售、一般及行政費用。因此，我們採取的大部分成本控制措施將使銷售、一般及行政費用在未來受益。我認為，今年第一季銷售、一般及行政費用較去年同期下降的部分原因，將在未來繼續存在。去年我們實施了一些重組措施，這將使我們在未來的每個季度都受益。

So we certainly have some tailwinds behind us as it relates to SG&A. But also reminding folks that we are continuing to invest in innovation and technology and specifically R&D, even through some of the top line issues. And that R&D will be rolling through SG&A. So even though if you look year-over-year, we do not anticipate a significant increase in SG&A because we believe we can offset some of the higher cost of R&D with some of these favorable SG&A trends. We wouldn't necessarily expect significant reductions going forward.

因此，就銷售、管理及行政費用而言，我們確實有一些有利因素。但也要提醒大家，即使面臨一些重大問題，我們仍將繼續投資創新和技術，特別是研發。而這些研發費用將計入銷售、管理及行政費用。因此，即使從年比來看，我們預期銷售、管理及行政費用不會大幅增加，因為我們相信可以用這些有利的銷售、管理及行政費用趨勢來抵銷部分較高的研發成本。我們並不預期未來會大幅降幅。

Next question comes from Lance Vitanza of Cowen.

下一個問題來自 Cowen 公司的 Lance Vitanza。

I wanted to actually focus on Slide 5. I found that very helpful. And I'll start. I was surprised to see the demand impact so significant. I mean 40% of the $80 million of revenues, so roughly $30 million. And I'm just trying to figure out how does that square with the commentary around orders being up year-over-year across the board. And specifically, does demand in this context, does this here include the inability to access customer locations? Or when you refer to demand, are you really specifically referring to just customers saying, we no longer want what we thought we wanted?

我其實想重點看看第五張投影片。我覺得它很有幫助。那我先來。需求受到的影響如此之大，讓我感到驚訝。我的意思是 8000 萬美元收入的 40%，也就是大約 3000 萬美元。我只是想弄明白，這與訂單量同比全面增長的說法是如何吻合的。具體來說，這裡的「需求」是否包括無法到達客戶所在地的情況？或者，當你提到需求時，你真的特別指顧客說「我們不再想要我們以前想要的東西」嗎？

This is Rob again. Few comments on that, and then I'll hand it over to David. What I'd say is what we haven't seen is, customer demand, someone place an order and then cancel that. We have not seen canceled orders. So what we have seen, as you mentioned, and you're direct on is that the access to the site are people actually pushing it out just because they're shut down, and we can't access that site. So the combination of not being able to manufacture the goods because of the things that are happening in our manufacturing facilities and the access to sites really drove that revenue, that $80 million COVID impact.

我是羅布。我對此不多說，然後就把麥克風交給大衛。我想說的是，我們還沒有看到這樣的情況：客戶下了訂單，然後又取消了訂單。我們沒有看到取消訂單的情況。正如您所提到的，我們看到的情況是，由於網站已關閉，我們無法訪問該網站，所以有人故意將網站連結發佈出去。因此，由於製造工廠發生的事情以及場地准入問題，導致無法生產商品，這確實導致了 8000 萬美元的收入損失，即 COVID 的影響。

Okay. That's super helpful and kind of what I expected, but wasn't clear. So then to the extent that this revenue is deferred rather than lost. Obviously, nobody knows when the lockdown ends. But once the lockdown does end, how quickly would you think, all else equal, we expect to see that deferred revenue return? I mean I would think it would be pretty quick, meaning in within a couple of months from whenever the lockdowns are over. Is that a fair estimation?

好的。這非常有幫助，基本上也符合我的預期，但之前並沒有明確說明。所以，這部分收入是被延後而不是損失的。顯然，沒有人知道封鎖何時結束。但是，一旦封鎖結束，在其他條件不變的情況下，您認為我們預計多久才能看到這部分遞延收入回歸？我的意思是，我覺得應該很快，大概在封鎖結束後幾個月內就能實現。這個估計合理嗎？

I wouldn't say within a couple of months, only because I don't know when our factories and rest of the supply chain will be at full strength and full health. That's going to be dependent, but access to sites will open up, and we'll certainly have a large backlog to work through and get that out. So I would expect to see, as we've talked about, and again, even pre-COVID that the second half will have a nice jump into it. And I think based on what we've seen in the backlog and customer overall demand, we're not seeing people cancel or delay.

我不會說幾個月之內就能恢復，因為我不知道我們的工廠和供應鏈的其他環節何時才能完全恢復正常運作。這取決於具體情況，但網站的存取權限將會開放，我們肯定會積壓大量工作需要處理和完成。所以，正如我們之前討論過的，甚至在新冠疫情之前，我預計下半年將會迎來一個不錯的成長。而且我認為，根據我們從積壓訂單和客戶整體需求中看到的情況來看，我們並沒有看到人們取消訂單或延遲出貨。

Now I did mention, and we did talk about the channel, things with small to medium business, who knows how these are going to come back. And various verticals, whether it's entertainment or whether it's travel. Some of those have been impacted pretty hard. And I just can't predict how that's going to come back, but we do see other areas like health care. And the thing I'm so excited about is this work-from-home initiative is really driving the fact that we need more edge devices. Latency has become a real huge issue. I bet every one of you experienced that in your home. So overall, we see the world coming back and our stuff being more -- even more vital than what it was prior to COVID.

我之前確實提到過，我們也討論過這個管道，以及中小企業的情況，誰知道這些企業會如何復甦呢。以及各種垂直領域，無論是娛樂還是旅遊。其中一些受到的影響相當嚴重。我無法預測這種情況會如何發展，但我們確實看到了其他領域，例如醫療保健。讓我感到興奮的是，這項居家辦公計畫真正推動了我們需要更多邊緣設備。延遲已經成為一個非常嚴重的問題。我敢肯定你們每個人在家裡都經歷過這種情況。所以總的來說，我們看到世界正在恢復正常，我們的物品也變得更加重要——甚至比新冠疫情之前更重要。

Understood. Maybe just 2 quick follow-ups on that. The first is, could you remind us what percentage of your revenue currently comes from the channel?

明白了。或許還有兩點需要補充說明。首先，您能否告知我們目前貴公司收入中來自該管道的百分比是多少？

And then secondly, the EBITDA impact that you saw from the COVID hit in the first quarter is about 35%, 40% flow through. Is that -- whatever the revenue impact turns out to be in the second quarter, we don't know. But whatever that revenue impact is, should we expect the same kind of flow through to EBITDA that we saw in the first quarter?

其次，第一季受新冠疫情衝擊對 EBITDA 的影響約為 35% 至 40%。也就是說——無論第二季的營收影響最終為何，我們都不得而知。但無論營收受到何種影響，我們是否應該預期 EBITDA 會像第一季一樣受到影響？

Sure. I'll handle that. Yes, I'll handle the first part and then turn it over to David. On the channel side, that represents about 15% of our overall global revenue, so it's around $600 million, $700 million. David Fallon, on the margin side or flow through?

當然。我會處理這件事。是的，我會處理第一部分，然後交給大衛。通路方面，這約占我們全球總收入的 15%，也就是大約 6 億美元到 7 億美元。David Fallon，你是站在邊緣還是中間？

Yes. So we applied a 40% contribution margin to the $80 million COVID sales impact. And the reason we use a number that is probably a little bit lower than what we have been broadcasting as our contribution margin is because $50 million of that $80 million was in APAC. And in general, our contribution margins in APAC are lower than the other 2 regions. For the sake of modeling, going forward, we would anticipate any lost sales impact, whether it's related to COVID or otherwise, to be somewhere between the 40% and 45%. So probably a little bit higher than what we used in the first quarter.

是的。因此，我們對 8000 萬美元的 COVID 疫情銷售影響應用了 40% 的貢獻毛利率。我們使用的數字可能比我們一直公佈的貢獻毛利略低一些，原因是這 8000 萬美元中有 5000 萬美元來自亞太地區。整體而言，我們在亞太地區的貢獻毛利率低於其他兩個地區。為了方便建模，我們預計未來任何銷售損失的影響，無論是與新冠疫情有關還是其他原因，都將在 40% 到 45% 之間。所以可能比我們第一季使用的量略高一些。

Your next question comes from Scott Davis of Melius Research.

你的下一個問題來自 Melius Research 的 Scott Davis。

Is there any impact on price in the quarter? Is price generally pretty flattish at this point? Or are you able to get any positive price, particularly with new products?

本季價格是否會受到影響？目前價格大致比較平穩嗎？或者，您能否獲得任何優惠價格，特別是對於新產品？

Yes. So great question. And I would say within the quarter, we did -- we were able to get some price. We have actions, ongoing actions we did last year and will continue this year to drive price in areas. New products being delivered to the market give us some unique features and give us a little bit of pricing power as well. So the combination of just being maniacally focused on pricing on a global basis and new products intros that have innovative features that allow us to get more price than our competitors. For example, new models of our DSE air conditioner that allow higher margins for us. So we've been still able to get price during this time in various areas. We're very focused on that.

是的。問得好。我想說的是，在本季度內，我們確實——我們能夠獲得一些價格。我們已經採取了一些措施，包括去年採取的和今年將繼續採取的措施，以推動某些地區的價格上漲。推向市場的新產品為我們帶來了一些獨特的功能，也讓我們擁有了一定的定價權。因此，我們瘋狂地專注於全球定價，並推出具有創新功能的新產品，從而獲得比競爭對手更高的價格。例如，我們推出的新型 DSE 空調為我們帶來了更高的利潤。因此，在此期間我們仍然能夠獲得各個地區的報價。我們非常關注這一點。

Okay. That's helpful. And then I probably should have asked this question a while ago, but how much of your backlog has a down payment? What's kind of the standard in putting something into backlog, which, obviously, the confidence in that backlog? Love to get your opinion on that as well. But first question really relating to how much of that requires a down payment?

好的。那很有幫助。我可能早就應該問這個問題了，你們的積壓訂單中有多少已經收到預付款了？將某項任務放入待辦事項清單的標準是什麼？顯然，這主要取決於對該待辦事項清單的信心。也很想聽聽你的看法。但首先要問的問題是，這其中有多少需要首付？

Yes. Scott, not much at all. Very little do we have prepayment cash upfront on that. Now the backlog is supported by very healthy companies. Those orders that are coming in, whether it's colo, hyperscale, telecom, although all companies are affected by this pandemic, we have a really solid base of very financially stable companies that have placed these orders, and we feel real confident that we won't be seeing canceled orders. The demand is high as you can (inaudible).

是的。史考特，沒什麼特別的。我們幾乎沒有預付現金。現在積壓訂單都由一些營運狀況良好的公司來支撐。無論是資料中心、超大規模資料中心或電信資料中心，雖然所有公司都受到了疫情的影響，但我們擁有非常穩固的、財務狀況穩定的公司基礎，這些公司下了訂單，我們非常有信心不會出現訂單取消的情況。需求量非常高（聽不清楚）。

Okay. And just on...

好的。就在這時…

The other thing that...

還有一件事…

Please go right ahead, sorry.

請繼續，不好意思。

Yes, Scott, the other thing that I'd add is just right now, this is a tremendous proof point that data centers are important, not just now, but going forward. And it's hard to imagine that these orders don't get -- don't continue. And to Rob's point, historically, we've had -- the backlog tends to be pretty robust.

是的，史考特，我還要補充一點，現在這充分證明了資料中心的重要性，不僅現在如此，將來也是如此。很難想像這些命令不會繼續執行。正如羅布所說，從歷史上看，我們的積壓工作往往相當多。

Anyways, to get back to brass tacks here. A couple of just cleanups, and hopefully, you don't have a lot of other questions just cut me off if you do. But am I to assume that if 70% of that $60 million is SG&A, then the other 30% is kind of at the factory level and perhaps some of that could be structural/permanent? Is that possible or...

總之，讓我們回到正題。還有一些收尾工作要做，希望你沒有其他問題了，如果有的話就打斷我吧。但我是否可以假設，如果這 6000 萬美元中有 70% 是銷售、一般及行政費用，那麼剩下的 30% 就屬於工廠層面，其中有些可能是結構性/永久性的？這有可能嗎？或者…

Scott, this is David Fallon. Absolutely. So if you look at the large components of the $60 million, probably 1/3 of that is discretionary spending. And that is more than likely the bucket of costs that we would be targeting going forward to be a permanent reduction. So a portion of that is D&E as an example. And we're all kind of learning new ways to do business without jumping on a plane. And so if you look at the different components, I would say there's going to be something of that $60 million that certainly flows through into next year and going forward. And we look at -- one thing -- one philosophy that Dave Cote has brought to us is a fixed cost is a fixed cost, whether it's in the factories or in the office. And we treat all fixed costs the same, and certainly, a significant portion of this will be benefiting the factories as well.

史考特，這位是戴維法倫。絕對地。因此，如果你看一下這 6000 萬美元的主要組成部分，其中可能有三分之一是可自由支配的支出。而且，這很可能就是我們未來要著重削減的永久性成本項目。例如，其中一部分就是D&E。我們都在學習如何以新的方式開展業務，而無需乘坐飛機。因此，如果你看一下各個組成部分，我認為肯定會有 6000 萬美元中的一小部分延續到明年及以後。我們來看——戴夫·科特帶給我們的一個理念是——固定成本就是固定成本，無論是在工廠還是在辦公室。我們對所有固定成本一視同仁，可以肯定的是，其中很大一部分也將使工廠受益。

Okay. Super. I'm sorry, I have one last final one. Inventories, the -- was it the shutdown in the middle of March that kind of caught you guys with your pants down, if you will, on inventories because that was a pretty meaningful buildup that we saw? And presumably, you saw issues, I would imagine, in China, particularly earlier in the quarter that -- and so I was a little surprised the inventory is built that much.

好的。極好的。抱歉，我還有一個最後的問題。庫存方面－是不是三月中旬的停工讓你們在庫存方面措手不及？因為我們當時看到了相當大的庫存積壓？想必您也看到了中國市場的問題，尤其是在本季度初——所以我對庫存積壓這麼多感到有些驚訝。

Yes. So absolutely, the -- the negative impact from COVID, and we -- as we got through the first quarter, we were actually in line with our internal projections as it relates to the top line. And things moved south really quickly in China, virtually shut down all of February. And then, of course, the impact in the other regions accelerated into March. So as we were putting our inventory build plans together as of early February, we didn't necessarily anticipate the size of the negative impact that actually occurred. So I would attribute a very large portion of that $40 million, if not all, just related to our sales planning projections based on where we were sitting at the end of January.

是的。所以，毫無疑問，新冠疫情的負面影響確實存在，而且，隨著第一季的結束，我們的營收實際上與我們的內部預測相符。中國的情況迅速惡化，整個二月幾乎完全停擺。當然，疫情對其他地區的影響在三月加速蔓延。因此，在 2 月初制定庫存建設計劃時，我們並沒有預料到實際發生的負面影響會如此之大。因此，我認為這 4000 萬美元中的很大一部分，甚至全部，都與我們在 1 月底的銷售計劃預測有關。

(Operator Instructions) Your next question comes from Nigel Coe of Wolfe Research.

（操作說明）您的下一個問題來自 Wolfe Research 的 Nigel Coe。

So I thought one of the highlights of the quarter was services growth remained in place. And I'm just curious how the short-term placed restrictions have impacted services. And then on top of that, maybe just characterize the service book in terms of transactional or discretionary services versus contractual?

所以我認為本季的一大亮點是服務業保持了成長動能。我只是好奇這些短期限制措施對服務產生了哪些影響。此外，或許還可以將服務手冊依交易性服務或酌情服務與合約性服務分類？

Yes. Nigel, thanks for the question and your time here. Yes, the services, one of the areas of growth is if you look at and recall when we kind of on the road and going through is services and the channel IT. So service has been a real focus for us to expand that, get higher capture rates and so forth. So we expected to see growth there. Where we were able to get access, we do have about 55%, 60% of our services are under contract and whether the preventive maintenance and so on. And we've seen some pushback on preventive maintenance and people going to more critical services necessary during this time or what we call start-up services.

是的。奈傑爾，感謝你的提問和抽出時間。是的，服務是成長領域之一，如果你回顧我們一路走來所經歷的，那就是服務和通路 IT。因此，服務一直是我們的重點，我們努力擴大服務範圍，提高客戶轉換率等等。因此我們預期會看到這方面的成長。在我們能夠獲得權限的地方，我們大約有 55% 到 60% 的服務是透過合約提供的，包括預防性維護等等。我們看到，人們對預防性維護有所抵觸，轉而選擇在此期間更為關鍵的服務，或我們稱之為啟動服務。

So we did see an uptick in the actual services, but we did see a downtick a little bit in the spare parts side of things. So the combination of the 2 kind of led us to a little bit of growth there. We expect coming out of this, especially, Dave mentioned, things are so vital now, customers really want to make sure they get their health checks on their systems and so on. So I would expect and we'll continue to invest in service people, service personnel to make sure that these networks remain vital and robust.

因此，我們看到實際服務量上升，但備件方面卻略有下降。所以，這兩者的結合確實讓我們在那方面取得了一些成長。我們預計，尤其是在戴夫提到的情況下，現在情況非常關鍵，客戶真的希望確保他們的系統得到健康檢查等等。因此，我希望並將繼續投資於服務人員，以確保這些網路保持活力和穩健性。

Right. Yes, that makes sense. And then I thought the free cash flow scenario analysis was very, very helpful. And given that the down 25% isn't your -- clearly isn't your [base] case scenario, but in that scenario, are you assuming that working capital can delever at the same rate of sales, so that 20% remains fairly constant on sales by year-end? And then I think you called out, David, that the 2Q free cash flow could be negative. Is that normal seasonality for free cash flow?

正確的。是的，這很有道理。然後我覺得自由現金流情境分析非常非常有幫助。鑑於下降 25% 顯然不是你的[基本]情況，但在這種情況下，你是否假設營運資本可以以與銷售額相同的速度去槓桿化，從而使 20% 的降幅在年底前保持相對穩定？然後，我想你當時也指出，David，第二季的自由現金流可能為負值。這是自由現金流的正常季節性波動嗎？

Yes. Just to address the second one. Absolutely. If you look at the cadence of our quarterly free cash flow, our first quarter historically has been negative. And our second quarter toggles between slightly positive or slightly negative. Certainly, free cash flow in Q2 will be impacted by the lower sales in Q1. So we are anticipating a slight use of cash in Q2 this year.

是的。僅針對第二個問題進行說明。絕對地。如果你看一下我們季度自由現金流的節奏，你會發現我們第一季歷來都是負數。第二季業績在略微獲利和略微虧損之間波動。當然，第二季的自由現金流會受到第一季銷售額下降的影響。因此，我們預計今年第二季會略微動用現金。

And as it relates to the recovery of working capital, the way we are modeling and actuals hold true to this if we look at our historical movement in working capital. But we're assuming a 22.5% recovery in working capital per dollar of sales, whether that goes up or down. And if you compare that to the 42.5% or so contribution margin on sales, for every dollar of sales loss, we lose about $0.20 of free cash flow. And that $0.20 is 42.5% contribution margin less than -- or less the 22.5% for working capital.

至於營運資本的回收，如果我們回顧營運資本的歷史走勢，就會發現我們的模型和實際情況都證實了這一點。但我們假設每銷售一美元，營運資本將恢復 22.5%，無論實際數值是上升還是下降。如果將其與 42.5% 左右的銷售貢獻毛利率進行比較，就會發現每損失 1 美元的銷售額，我們就會損失約 0.20 美元的自由現金流。而這 0.20 美元的貢獻毛利比營運資本的 22.5% 少了 42.5%。

This concludes our question-and-answer session. I'd like to turn the conference back over to Mr. Rob Johnson for any closing remarks.

我們的問答環節到此結束。我謹將會議交還給羅伯·約翰遜先生，請他作總結發言。

Thank you, operator, and thank you all of you for those questions. As Dave stated in the beginning, we are investing for the future during this COVID period in R&D and in sales, people and services. We'll continue to do that, so we come out much stronger. We're taking the appropriate actions on cost, and we have additional levers, if necessary, if this pandemic gets worse. We're continuing to drive the long-term margin expansion that we've talked about, and we'll continue to pull those 4 or 5 levers.

謝謝接線員，也謝謝各位提出的問題。正如戴夫在開頭所說，在新冠疫情期間，我們正在對研發、銷售、人員和服務進行未來投資。我們將繼續這樣做，這樣我們才能變得更強大。我們正在採取適當的成本控制措施，如果疫情進一步惡化，我們還有額外的應對手段。我們將繼續推進我們之前討論過的長期利潤率擴張，並將繼續運用這 4 或 5 個槓桿。

And I want everyone to be clear, as we've mentioned many times, we feel we have solid liquidity. I want to thank all 19,000-plus employees around the world for working hard every day to take care of our customers. We appreciate all your time. Please stay safe. We look forward to speaking to you again soon. Thank you very much. This concludes the call.

我想讓大家明白，正如我們多次提到的，我們認為我們擁有充足的流動資金。我要感謝全球超過 19,000 名員工，感謝他們每天辛勤工作，為我們的客戶提供優質服務。非常感謝您抽出時間。請注意安全。我們期待盡快再次與您聯繫。非常感謝。通話到此結束。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。