VSE Corp (VSEC) 2023 Q3 法說會逐字稿

Good morning, and welcome to the VSE Corporation Third Quarter 2023 Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Mr. Michael Perlman, VP of Investor Relations and Communications. Please go ahead.

早安，歡迎參加 VSE 公司 2023 年第三季業績電話會議。 （操作員說明）請注意，正在記錄此事件。現在我想將會議交給投資者關係與傳播副總裁 Michael Perlman 先生主持。請繼續。

Thank you. Welcome to VSE Corporation's Third Quarter 2023 Results Conference Call. Leading the call today are John Cuomo, President and CEO; and Steve Griffin, Chief Financial Officer. The presentation we are sharing today is on our website, and we encourage you to follow along accordingly.

謝謝。歡迎參加 VSE Corporation 2023 年第三季業績電話會議。今天主持會議的是總裁兼執行長約翰·科莫 (John Cuomo)；和首席財務官史蒂夫格里芬。我們今天分享的簡報位於我們的網站上，我們鼓勵您相應地遵循。

Today's discussion contains forward-looking statements about the future business and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including those described in our periodic reports filed with the SEC. Except as required by law, we undertake no obligation to update our forward-looking statements.

今天的討論包含有關未來業務和財務預期的前瞻性陳述。由於各種風險和不確定性，包括我們向美國證券交易委員會提交的定期報告中所述的風險和不確定性，實際結果可能與今天的前瞻性聲明中預測的結果有顯著差異。除法律要求外，我們不承擔更新前瞻性聲明的義務。

We are using non-GAAP financial measures in our presentation. Where available, the GAAP financial reconciliations are incorporated into our presentation, which is posted on our website. All percentages in today's discussion refer to year-over-year progress, except where noted. As a reminder, the Federal & Defense business segment has been excluded from our results and has been moved to discontinued operations as we pursue the divestiture of the business.

我們在演示中使用非公認會計準則財務指標。如果有的話，GAAP 財務調節表會納入我們的簡報中，並發佈在我們的網站上。除非另有說明，今天討論中的所有百分比均指同比進展。提醒一下，聯邦與國防業務部門已被排除在我們的業績之外，並且在我們尋求剝離該業務時已被轉移到已停止運營的業務部門。

We also look forward to welcoming you all to our first Investor Day scheduled for November 14, 2023, in New York City at NASDAQ MarketSite and broadcast virtually. You can register for the event on our IR website at ir.vsecorp.com. Please feel free to contact me directly with any questions.

我們也期待歡迎大家參加我們定於 2023 年 11 月 14 日在紐約市 NASDAQ MarketSite 舉辦的首屆投資者日活動，並以虛擬方式進行直播。您可以在我們的 IR 網站 ir.vsecorp.com 上註冊參加活動。如有任何疑問，請隨時直接與我聯絡。

At the conclusion of our prepared remarks, we will open the line for questions. With that, I'd like to turn the call over to John.

在我們準備好的發言結束後，我們將開放提問熱線。有了這個，我想把電話轉給約翰。

Thank you, Michael. Good morning, everyone, and welcome. Thanks for joining our call today.

謝謝你，麥可。大家早安，歡迎光臨。感謝您今天加入我們的電話會議。

Let's begin with Slide 3, where I will provide an update on the performance of our business segments.

讓我們從幻燈片 3 開始，我將在其中提供有關我們業務部門業績的最新資訊。

Third quarter 2023 results were highlighted by record revenue and financial performance in our Aviation segment, strong revenue growth in our Fleet segment, and the closing of both the Desser acquisition and a transformational asset and intellectual property license agreement with Honeywell.

航空部門創紀錄的收入和財務業績、機隊部門收入強勁增長，以及完成 Desser 收購以及與霍尼韋爾達成的轉型資產和知識產權許可協議，凸顯了 2023 年第三季度的業績。

Aviation segment revenue increased 48% in the quarter. This strong performance was driven by strong program execution, market share gains, the expansion of our products and repair capabilities and positive end market activity. We continue to experience great success from our Aviation segment's organic and inorganic investment. Aviation distribution revenue growth of 46% was driven by strong program execution on new and existing distribution awards, the entrance into new markets and an expansion of product offerings, along with improved pricing and product mix. Aviation MRO revenue growth of 54% was driven by strong end market activity, market share gains and expansion of repair capabilities and contributions from new customers.

本季航空部門營收成長 48%。這一強勁的業績得益於強勁的專案執行、市場份額的成長、產品和維修能力的擴展以及積極的終端市場活動。我們繼續從航空部門的有機和無機投資中取得巨大成功。航空分銷收入成長 46% 的推動因素包括新的和現有分銷獎項的強勁計劃執行、進入新市場和擴大產品供應，以及改進定價和產品組合。航空 MRO 收入成長 54%，得益於強勁的終端市場活動、市場份額的成長、維修能力的擴大以及新客戶的貢獻。

The Fleet segment experienced solid revenue growth across all channels, with 22% total revenue growth in the quarter. Our Fleet segment revenue and profit dollar contribution improved year-over-year. The Fleet segment sales increase was led by revenue contributions from our new Memphis, Tennessee distribution facility as we continue to ramp our new e-commerce fulfillment business. The increase in USPS revenue in the quarter was supported by an expansion of the installed base of their vehicles and continued maintenance investments in both legacy and new vehicles.

車隊部門的所有通路收入均實現穩健成長，本季總收入成長 22%。我們的機隊部門營收和利潤貢獻較去年同期有所改善。隨著我們繼續擴大新的電子商務履行業務，車隊部門銷售額的成長得益於田納西州孟菲斯新分銷設施的收入貢獻。本季 USPS 收入的成長得益於車輛安裝基數的擴大以及對舊車輛和新車的持續維護投資。

Let's now move to Slide 4, where I will provide a strategic update. First, on July 3, we acquired Desser Aerospace, a global aftermarket solutions provider of specialty distribution and MRO services. Desser Aerospace is a leading independent distributor of aircraft tires and tubes, a global distributor of brakes and batteries and a component MRO services provider for wheel and brake repair. The acquisition supports our tip-to-tail aircraft distribution and MRO services strategy and provides VSE Aviation with increased access to the highly-fragmented Aviation aftermarket.

現在讓我們轉到幻燈片 4，我將在其中提供策略更新。首先，我們在 7 月 3 日收購了 Desser Aerospace，這是一家專業分銷和 MRO 服務的全球售後解決方案提供商。 Desser Aerospace 是領先的飛機輪胎和內胎獨立分銷商、煞車和電池的全球分銷商以及車輪和煞車維修的組件 MRO 服務提供商。此次收購支援我們的端到端飛機分銷和 MRO 服務策略，並為 VSE Aviation 提供了更多進入高度分散的航空售後市場的機會。

Having Desser within the VSE Aviation portfolio of assets has already begun to deliver sales synergy benefits. We have begun the integration of Desser starting with the U.S. operations, which is expected to be completed by the second quarter of 2024. As a reminder, integration means full system, process and organizational integration into the VSE system with the goal of reducing cost, improving productivity and providing our customers and suppliers with a one-company, seamless approach to the market.

將 Desser 納入 VSE Aviation 資產組合已經開始帶來銷售協同效益。我們已經從美國業務開始對 Desser 進行整合，預計將於 2024 年第二季完成。需要提醒的是，整合意味著將整個系統、流程和組織整合到 VSE 系統中，目的是降低成本，提高生產力，並為我們的客戶和供應商提供單一公司、無縫的市場方法。

Second, we announced that we entered into a transformational purchase and perpetual license agreement with Honeywell that will allow us to exclusively manufacture, sell, distribute and repair over 340 unique fuel control systems on 4 engine platforms, including 3 platforms that are still in production. This new agreement expands VSE Aviation's existing capabilities, supporting these Honeywell fuel control systems and associated subcomponents. Since 2015, VSE Aviation has served as the exclusive distributor of these products. In addition, VSE Aviation has a long established and successful history as an MRO provider to support these fuel control systems. Through this new agreement, VSE expands the relationship to become the licensed manufacturer with perpetual rights to the intellectual property of these components.

其次，我們宣布與霍尼韋爾達成了一項轉型性購買和永久許可協議，這將使我們能夠在4 個引擎平台上獨家製造、銷售、分銷和維修340 多個獨特的燃油控制系統，其中包括3 個仍在生產的平台。這項新協議擴展了 VSE Aviation 的現有能力，支援這些霍尼韋爾燃油控制系統和相關子組件。自 2015 年起，VSE Aviation 一直擔任這些產品的獨家經銷商。此外，VSE Aviation 作為支援這些燃油控制系統的 MRO 供應商有著悠久而成功的歷史。透過這項新協議，VSE 擴大了合作關係，成為擁有這些組件智慧財產權永久權利的授權製造商。

We are very excited about this announcement and what it represents for VSE Aviation. The announcement not only allows us to significantly strengthen our current and long-term relationship with Honeywell, the engine manufacturers and the aftermarket users, but it's also a testament to the differentiated OEM-centric value proposition, which continues to resonate with suppliers and provides us additional opportunities to add value through the supply chain. In addition, this adds a high-margin revenue channel and partnership opportunity to our Aviation portfolio. We will share more details about this program during our November 14 Investor Day.

我們對這項公告及其對 VSE Aviation 的意義感到非常興奮。該公告不僅使我們能夠顯著加強與霍尼韋爾、發動機製造商和售後市場用戶的當前和長期關係，而且還證明了以OEM 為中心的差異化價值主張，該主張不斷引起供應商的共鳴，並為我們提供了更多的機會。透過供應鏈增加價值的額外機會。此外，這也為我們的航空產品組合增加了高利潤收入管道和合作機會。我們將在 11 月 14 日投資者日期間分享有關該計劃的更多詳細資訊。

Finally, last month, we announced a mutual agreement to terminate the sale of the Federal and Defense segment to Bernhard Capital Partners. While we were disappointed with this outcome, we remain very focused on the near-term divestiture, and we are moving quickly towards the sale of these assets. We have relaunched the process and expect to provide a more detailed update early in the first quarter of 2024. In the interim, the FDS business will remain in discontinued operations as we pursue divestiture opportunities for this business.

最後，上個月，我們宣布了一項共同協議，終止將聯邦和國防部門出售給 Bernhard Capital Partners。雖然我們對這一結果感到失望，但我們仍然非常關注近期的剝離，並且我們正在迅速出售這些資產。我們已重新啟動流程，並預計在 2024 年第一季初提供更詳細的更新。在此期間，FDS 業務將繼續處於已停止營運狀態，因為我們正在尋求該業務的剝離機會。

Let's now move to Slide 5. VSE delivered solid and well-rounded third quarter results, highlighted by a 38% increase in revenue, a 57% increase in net income and a 56% increase in adjusted EBITDA compared to the prior year. Our Aviation segment posted its fourth record quarter in a row, with revenues of $152 million, a 48% increase year-over-year and our first quarter over $150 million. Driving the record revenue was balanced growth across both commercial and business and general aviation customers, increased activity through both our distribution and MRO sales channels and the addition of Desser Aerospace.

現在讓我們轉到投影片 5。VSE 第三季業績穩健且全面，與前一年相比，營收成長了 38%，淨利成長了 57%，調整後 EBITDA 成長了 56%。我們的航空部門連續第四個季度創下歷史新高，營收為 1.52 億美元，年增 48%，第一季營收超過 1.5 億美元。推動創紀錄收入的因素包括商業和商務及通用航空客戶的均衡成長、我們的分銷和 MRO 銷售管道的活動增加以及 Desser Aerospace 的加入。

Adjusted EBITDA for the Aviation segment of $25 million increased by 87% versus the prior year, yet another record for this business segment. Aviation segment adjusted EBITDA margin increased by approximately 340 basis points year-over-year to 16.6%. The Aviation segment adjusted EBITDA represented 78% of total company's third quarter adjusted EBITDA versus 65% last year.

航空部門調整後 EBITDA 為 2,500 萬美元，較上年增長 87%，再創該業務部門的紀錄。航空部門調整後 EBITDA 利潤率年增約 340 個基點，達到 16.6%。航空部門調整後 EBITDA 占公司第三季調整後 EBITDA 總額的 78%，而去年為 65%。

Our Fleet segment also reported strong revenue growth in the third quarter on a year-over-year basis, increasing 22% to $79 million, driving growth across all active sales channels. Fleet segment adjusted EBITDA dollars increased by 5%, driven by strong commercial sales growth and solid contributions from the U.S. Postal Service program.

我們的車隊部門第三季營收年增 22% 至 7,900 萬美元，推動了所有活躍銷售管道的成長。由於強勁的商業銷售成長和美國郵政服務計劃的強勁貢獻，機隊部門調整後的 EBITDA 美元增長了 5%。

We are proud and thankful for our VSE teams and a strong commitment to our customer and supplier-focused value. I'm pleased to see that this work translated to a record financial performance in the quarter.

我們對我們的 VSE 團隊以及對以客戶和供應商為中心的價值的堅定承諾感到自豪和感激。我很高興看到這項工作轉化為本季創紀錄的財務業績。

I will now turn the call over to Steve for a detailed review of our third quarter financial performance.

我現在將把電話轉給史蒂夫，詳細審查我們第三季的財務表現。

Thanks, John. As a reminder, our results exclude the Federal and Defense segment, which remains in discontinued operations as it is held for sale.

謝謝，約翰。提醒一下，我們的業績不包括聯邦和國防部門，該部門因待售而仍處於停產狀態。

I'll now turn to Slide 6 and 7 of the conference call materials to provide an overview of our third quarter performance.

我現在將轉向電話會議材料的幻燈片 6 和 7，概述我們第三季的業績。

As John mentioned, we reported record revenue in our Aviation segment and strong year-over-year performance within our Fleet segment. Our results across both segments were driven by strong program execution, expanded capabilities and offerings, market share gains and robust demand across all end markets. We generated $231 million in revenue in the third quarter, an increase of 38% versus the prior year period. Aviation reported another record quarter driven by strong program execution of new and existing distribution awards and expansion of product offerings and repair capabilities, increased commercial and business and general aviation MRO activity, strengthened customer and supplier relationships, all of which have led to market share gains and new profitable revenue opportunities. And lastly, contributions from the recent Desser Aerospace acquisition.

正如約翰所提到的，我們的航空部門收入創紀錄，機隊部門較去年同期表現強勁。我們在這兩個領域的業績都是由強大的專案執行、擴展的能力和產品、市場份額的成長以及所有終端市場的強勁需求所推動的。第三季我們的營收為 2.31 億美元，比去年同期成長 38%。航空業報告又創紀錄的季度業績，這得益於新的和現有的分銷獎勵計劃的強勁執行、產品供應和維修能力的擴展、商業和通用航空MRO 活動的增加、客戶和供應商關係的加強，所有這些都帶來了市場份額的成長以及新的獲利收入機會。最後，來自最近收購 Desser Aerospace 的貢獻。

Fleet segment growth was driven by solid e-commerce fulfillment and commercial fleet sales, together with higher contributions from the USPS program. We generated $32 million of adjusted EBITDA and $14 million of adjusted net income, an increase of 56% and 75%, respectively. Adjusted EBITDA increased $11.5 million, driven by an $11.7 million contribution from Aviation and a $500,000 contribution from Fleet, partially offset by the GAAP accounting impact on corporate expenses from discontinued operations.

車隊部門的成長是由可靠的電子商務履行和商業車隊銷售以及 USPS 計劃的更高貢獻所推動的。我們產生了 3,200 萬美元的調整後 EBITDA 和 1,400 萬美元的調整後淨利潤，分別成長了 56% 和 75%。調整後的 EBITDA 增加了 1,150 萬美元，主要由航空部門貢獻的 1,170 萬美元和機隊貢獻的 50 萬美元推動，但部分被 GAAP 會計對終止營運的公司費用的影響所抵消。

Now turning to Slide 8, we'll cover our Aviation segment results. Revenue increased 48% versus the third quarter last year to a record $152 million. Both distribution and MRO businesses were strong contributors, up 46% and 54%, respectively. Aviation grew 24% excluding the Desser acquisition, driven by strong execution of recent investments and growth initiatives and strong end markets.

現在轉到投影片 8，我們將介紹航空部門的業績。營收較去年第三季成長 48%，達到創紀錄的 1.52 億美元。分銷和 MRO 業務貢獻強勁，分別成長 46% 和 54%。航空業成長了 24%（不包括 Desser 收購），這得益於近期投資和成長計畫的強勁執行以及強勁的終端市場。

Distribution revenue growth was driven by strong execution of existing OEM programs, expansion into new markets, improved pricing and customer mix and contributions from Desser. MRO continues to benefit from higher commercial flight activity and expanded portfolio of repair services and capabilities, improved productivity and the addition of our Desser Aerospace acquisition.

分銷收入的成長得益於現有 OEM 計劃的強勁執行、新市場的擴張、定價和客戶組合的改善以及 Desser 的貢獻。 MRO 繼續受益於商業飛行活動的增加、維修服務和能力組合的擴大、生產率的提高以及我們對 Desser Aerospace 的收購。

Aviation adjusted EBITDA increased by 87% in the quarter to $25 million, while adjusted EBITDA margins increased 340 basis points to 16.6%. The improvement in profitability was driven by contributions from new programs, robust MRO revenue growth, operating leverage and progress on margin improvement initiatives. Additionally, we were pleased with the results of the Desser business as it exceeded our initial third quarter expectations.

本季航空業調整後 EBITDA 成長 87%，達到 2,500 萬美元，調整後 EBITDA 利潤率成長 340 個基點，達到 16.6%。獲利能力的改善是由新計劃、強勁的 MRO 收入成長、營運槓桿和利潤改善計劃的進展所推動的。此外，我們對 Desser 業務的業績感到滿意，因為它超出了我們最初的第三季預期。

Within our Aviation segment, we recently increased our full year 2023 revenue growth guidance range to 30% to 35% to account for our strong third quarter results and the addition of Desser. We initially estimated that Desser would contribute approximately $35 million of revenue to our second half results. While we are on track to exceed our initial expectations, we do expect slightly softer fourth quarter Desser revenue as compared to the third quarter due to seasonality within their business.

在我們的航空部門，我們最近將 2023 年全年營收成長指引提高到 30% 至 35%，以應對我們強勁的第三季業績和 Desser 的增加。我們最初估計 Desser 將為我們下半年的業績貢獻約 3,500 萬美元的收入。雖然我們預計將超越最初的預期，但由於業務的季節性因素，我們預計第四季度 Desser 的營收將比第三季略有下降。

We expect our full year adjusted EBITDA margin to be towards the higher end of our previously-provided range of 14% to 16% as strong year-to-date margins are modestly offset by fourth quarter investments, including standing up the supply chain for our newly-acquired Honeywell fuel control systems business and the expansion of our operating footprint throughout Europe.

我們預計全年調整後 EBITDA 利潤率將接近之前提供的 14% 至 16% 區間的高端，因為年初至今的強勁利潤率將被第四季度的投資適度抵消，包括為我們的供應鏈提供支持。新收購的霍尼韋爾燃油控制系統業務以及我們在整個歐洲的營運足跡的擴展。

Regarding the recent Honeywell Fuel Controls announcement, we do not anticipate any material revenue impact in the fourth quarter. However, we do anticipate higher sequential operating expenses, interest expense and amortization as we establish manufacturing capabilities to support the program. In 2024 and in 2025, we anticipate $7 million and $14 million of EBITDA contribution from the program respectively, improving ratably throughout each year as we realized the lower cost of inventory purchases. We also expect to realize $10 million in lower net working capital by the end of 2024.

關於霍尼韋爾燃料控制公司最近的公告，我們預計第四季度的收入不會受到任何重大影響。然而，隨著我們建立支持該計劃的製造能力，我們預計後續營運費用、利息費用和攤銷將會更高。到 2024 年和 2025 年，我們預計該計劃的 EBITDA 貢獻將分別為 700 萬美元和 1400 萬美元，隨著我們意識到庫存採購成本的降低，每年都會大幅改善。我們也預計到 2024 年底，淨營運資本將減少 1,000 萬美元。

Now turning to Slide 9. Fleet segment revenue increased 22% to $79 million, driven by strong growth in e-commerce fulfillment and commercial fleet sales along with increased USPS demand to support their growing fleet. Total commercial revenue was $37 million in the quarter, an increase of 47% versus the prior year period and now represents 47% of total Fleet segment revenue, an approximate 800 basis point increase over the same period in the prior year.

現在轉向幻燈片 9。由於電子商務履行和商業車隊銷售的強勁增長以及 USPS 支持其不斷增長的車隊的需求增加，車隊部門收入增長了 22%，達到 7,900 萬美元。本季商業總收入為 3,700 萬美元，比去年同期增長 47%，目前佔艦隊部門總收入的 47%，比去年同期增長約 800 個基點。

Commercial revenue growth remains on track with our initial expectations as we launch our new Memphis distribution facility, as we continue to scale our infrastructure and workforce to meet the robust end market demand. Commercial revenue. While we see strong growth year-over-year, commercial revenue declined modestly on a sequential quarterly basis, driven by what we believe to be a temporary market -- supply chain disruptions. We continue to launch the Memphis distribution facility as we navigate this new market. We remain confident in our ability to continue to grow the business.

隨著我們推出新的孟菲斯分銷設施，商業收入成長仍符合我們的最初預期，同時我們繼續擴大基礎設施和勞動力規模，以滿足強勁的終端市場需求。商業收入。雖然我們看到年比強勁成長，但商業收入較上季略有下降，這是由於我們認為是暫時的市場——供應鏈中斷所致。在我們開拓這個新市場的過程中，我們將繼續推出孟菲斯分銷設施。我們對繼續發展業務的能力仍然充滿信心。

U.S. Postal Service revenue was up approximately 6% versus the third quarter of last year, which is included within our Other Government channel. Our best-in-class customer service and supply chain management program allows us to continue to maintain market share on all legacy USPS platforms while we service newly-introduced vehicles.

美國郵政服務收入較去年第三季成長約 6%，這包含在我們的其他政府管道中。我們一流的客戶服務和供應鏈管理計劃使我們能夠在為新推出的車輛提供服務的同時，繼續保持所有舊版 USPS 平台上的市場份額。

Segment adjusted EBITDA increased 5% to $9 million, driven by increased sales volume. Adjusted EBITDA margin was down 190 basis points to 11.6%, driven by the mix of commercial customers. For the full year 2023, we expect revenue growth of 20% to 25% year-over-year and adjusted EBITDA margin in the range of 11% to 13%. We continue to focus on driving year-over-year profit growth for the segment as we drive to scale our recently-launched distribution facility to reach its full potential.

由於銷售量增加，部門調整後 EBITDA 成長 5%，達到 900 萬美元。受商業客戶組合的推動，調整後 EBITDA 利潤率下降 190 個基點至 11.6%。對於 2023 年全年，我們預計營收將年增 20% 至 25%，調整後 EBITDA 利潤率在 11% 至 13% 範圍內。我們繼續專注於推動該領域的同比利潤成長，同時努力擴大我們最近推出的分銷設施以充分發揮其潛力。

Turning to Slide 10. At the end of the third quarter, we had $89 million in cash and unused commitment availability under our $350 million credit facility. For the quarter, we generated $15 million of operating cash flow and $11 million of free cash flow, driven by disciplined cash management and strong operating results. At the end of the quarter, we had total net debt outstanding of $440 million. We currently have $250 million of outstanding interest rate swaps, following the execution of a $100 million swap in July, concurrent with the Desser acquisition.

轉向幻燈片 10。第三季末，我們在 3.5 億美元的信貸安排下擁有 8900 萬美元的現金和未使用的可用承諾。在嚴格的現金管理和強勁的經營業績的推動下，本季我們產生了 1,500 萬美元的營運現金流和 1,100 萬美元的自由現金流。截至本季末，我們的未償淨債務總額為 4.4 億美元。繼 7 月收購 Desser 的同時執行了 1 億美元的掉期之後，我們目前還有 2.5 億美元的未償還利率掉期。

Pro forma net leverage, which includes the trailing 12-month results from our prior acquisitions, was 3.7x at the end of the third quarter. We expect our pro forma net leverage ratio to be below 3.5x by the end of the fourth quarter, driven by growth in trailing 12 months of adjusted EBITDA and positive free cash flow in the fourth quarter. We expect fourth quarter free cash flow to improve sequentially as compared to the third quarter, as we continue to realize returns on working capital investments from earlier in 2023.

截至第三季末，預計淨槓桿率為 3.7 倍，其中包括我們先前收購的過去 12 個月的業績。我們預計，在過去 12 個月調整後 EBITDA 成長和第四季正自由現金流的推動下，到第四季末，我們的預期淨槓桿率將低於 3.5 倍。隨著我們從 2023 年初開始繼續實現營運資本投資回報，我們預計第四季自由現金流將比第三季連續改善。

With that, I will now turn the call back over to John for his final remarks.

現在，我將把電話轉回給約翰，讓他發表最後的演講。

Thank you, Steve.

謝謝你，史蒂夫。

I would like to conclude our prepared remarks by reviewing the opportunities ahead and priorities for our business. Our focus remains on driving sustainable, profitable growth while enhancing the operational performance of our 2 business segments.

我想透過回顧未來的機會和我們業務的優先事項來結束我們準備好的發言。我們的重點仍然是推動可持續的獲利成長，同時提高我們兩個業務部門的營運績效。

Please advance to Slide 11. First, continue to pursue the near-term sale of the Federal and Defense business. As I stated earlier, we remain confident in our ability to monetize these assets and will work towards an expedited sale of this business. We expect to provide an update in the coming months.

請前進到幻燈片 11。首先，繼續尋求聯邦和國防業務的近期出售。正如我之前所說，我們對將這些資產貨幣化的能力仍然充滿信心，並將努力加快出售該業務。我們預計將在未來幾個月內提供更新。

Second, transition and implement our newly-acquired Honeywell Fuel Controls product line and associated subcomponents program.

其次，過渡並實施我們新收購的霍尼韋爾燃油控制產品線和相關子組件計劃。

Third, complete the integration of our Precision Fuel MRO acquisition, which will happen this quarter, and continue the integration of our Desser Aerospace acquisition. We remain focused on our model to fully integrate all acquired assets into our systems, processes and organizational structure in order to provide our customers with a single source for our products and services and drive synergies and greater combined value and investment returns for our shareholders.

第三，完成對 Precision Fuel MRO 收購的整合（將於本季進行），並繼續整合對 Desser Aerospace 的收購。我們仍然專注於我們的模式，將所有收購的資產完全整合到我們的系統、流程和組織結構中，以便為我們的客戶提供我們的產品和服務的單一來源，並為我們的股東帶來協同效應和更大的綜合價值和投資回報。

Fourth, continue to expand our full-service unique product distribution and MRO repair capabilities within high-growth, underserved portions of the Aviation aftermarket. We remain focused on offering a bespoke solutions-oriented approach that addresses our customer needs. We look forward to sharing more about growth opportunities and 2024 pipeline in the coming weeks.

第四，繼續在高成長、服務不足的航空售後市場領域擴大我們的全方位服務獨特產品分銷和 MRO 維修能力。我們仍然專注於提供以客製化解決方案為導向的方法來滿足客戶的需求。我們期待在未來幾週內分享更多有關成長機會和 2024 年產品線的資訊。

Fifth, drive commercial growth while supporting legacy programs within our Fleet business. This includes scaling and growing revenue and improving profitability at our Memphis distribution and e-commerce fulfillment center to address robust and commercial fleet customer demand.

第五，推動商業成長，同時支援我們艦隊業務中的遺留項目。這包括擴大和增加收入以及提高孟菲斯分銷和電子商務履行中心的盈利能力，以滿足強勁的商業車隊客戶需求。

And finally, deliver accelerated free cash flow, specifically in the fourth quarter, driven by disciplined cash management and strong operating results.

最後，在嚴格的現金管理和強勁的經營業績的推動下，實現加速的自由現金流，特別是在第四季度。

I'm very proud of our third quarter operating performance and the tremendous progress we have made year-to-date to advance both our Aviation and Fleet business strategies. I'm very thankful to our teams and the results that they have been able to deliver. The culture and teams at VSE continues to be our greatest asset and our greatest differentiator. I look forward to sharing what's ahead for VSE at our November Investor Day in less than 2 weeks.

我對我們第三季的營運業績以及我們今年迄今在推動航空和機隊業務策略方面取得的巨大進展感到非常自豪。我非常感謝我們的團隊以及他們所取得的成果。 VSE 的文化和團隊仍然是我們最大的資產和最大的差異化因素。我期待在兩週後的 11 月投資者日上分享 VSE 的未來發展。

Operator, we are now ready for the question-and-answer portion of our call.

接線員，我們現在已準備好進行通話的問答部分。

(Operator Instructions) The first question comes from Louie DiPalma with William Blair.

（操作員說明）第一個問題來自路易·迪帕爾瑪（Louie DiPalma）和威廉·布萊爾（William Blair）。

The Aviation aftermarket remained very strong. It appears that there's really robust industry growth and you've also gained share. But as we look to the fourth quarter, how should we think about seasonality relative to the third quarter?

航空售後市場仍然非常強勁。看來行業成長確實強勁，而且您也獲得了份額。但當我們展望第四季時，我們應該如何考慮相對於第三季的季節性？

Yes. I think I mentioned it in my prepared remarks, Louie, but obviously, we're extremely pleased with the results of the Aviation business in the third quarter. When we look towards the fourth quarter, there is an element of seasonality, so a little bit lighter on revenue is what we would anticipate, and probably some of that mostly coming from the most recent Desser acquisition. I referenced that it's above our expectations as we initially set out for, but it will have a seasonality effect.

是的。我想我在準備好的發言中提到過這一點，Louie，但顯然，我們對第三季航空業務的業績非常滿意。當我們展望第四季度時，存在季節性因素，因此我們預計收入將稍微減少，其中部分收入可能主要來自最近收購的 Desser。我提到這超出了我們最初設定的預期，但它會產生季節性影響。

I think when we look for the full year, we're very pleased with the contributions for the Aviation business. We've increased our revenue guidance range now for the full year, 30% to 35%, and we look forward to talking more about '24 and beyond when we get to the Investor Day. But very, very pleased with the results thus far.

我認為，當我們展望全年時，我們對航空業務的貢獻感到非常滿意。我們現在已將全年收入指導範圍提高了 30% 至 35%，我們期待在投資者日到來時更多地討論 24 日及以後的情況。但對迄今為止的結果非常非常滿意。

Steven. Sorry that I missed that.

史蒂文.抱歉我錯過了。

For the Federal and Defense segment, despite some of it struggles, it still seems as though it has some attractive assets with the Energetics Consulting business, and you also have a $565 million in C5 aircraft IDIQ. Have you seen interest to buy these assets on a stand-alone basis as opposed to potential acquirers for the whole business?

對於聯邦和國防部門來說，儘管有些困難，但它似乎仍然在能源諮詢業務方面擁有一些有吸引力的資產，而且還擁有價值 5.65 億美元的 C5 飛機 IDIQ。您是否看到有興趣單獨購買這些資產，而不是潛在的收購者收購整個業務？

Yes, Louie. So the way you're looking at it, exactly correct. So we're obviously looking for the most expedited process that's possible that can monetize the asset with the highest value. That could include selling the segment in totality or selling pieces or contracts independently, and we are pursuing both paths simultaneously.

是的，路易。所以你的看法是完全正確的。因此，我們顯然正在尋找盡可能最快的流程，以將具有最高價值的資產貨幣化。這可能包括整體出售該部門或單獨出售部分或合同，我們正在同時追求這兩條道路。

Great. And one final question. Earlier this year, you expanded your Pratt & Whitney Canada partnership into Asia, and it appears that the execution for that geographic expansion has been going well. Are there opportunities for you with your other OEM partners in Asia and other geographies?

偉大的。最後一個問題。今年早些時候，你們將加拿大普惠公司的合作關係擴展到了亞洲，而且該地域擴張的執行似乎進展順利。您在亞洲和其他地區是否有與其他 OEM 合作夥伴合作的機會？

There are. We hope to be in a position to share a little bit more detail about that at our Investor Day coming up. We're really focused on Europe for 2024 with the acquisition of Desser, which gives us a strong solid team in Europe, but that team is very U.K.-centric. We have plans to expand outside of the U.K. and both leveraging the Desser business and some of our OEM partnerships to do so, and we'll be in a position to share some more detail about that at the Investor Day.

有。我們希望能夠在即將到來的投資者日分享更多相關細節。透過收購 Desser，我們真正專注於 2024 年的歐洲，這為我們在歐洲提供了一支強大的團隊，但團隊非常以英國為中心。我們計劃向英國以外的地區擴張，並利用 Desser 業務和我們的一些 OEM 合作夥伴關係來實現這一目標，我們將能夠在投資者日分享更多相關細節。

The next question comes from Michael Ciarmoli with Truist.

下一個問題來自 Michael Ciarmoli 和 Truist。

Just to close the loop on that -- on Fed and trying to sell that. I mean, do you guys have to realistically lower your expectations in terms of what you think the assets could fetch now? I know it was kind of with that earnout, $100 million. I mean, are you just trying to do this as quick as possible? And obviously, you're still trying to monetize it in the most efficient fashion and get the most value, but do you think you've got to lower your expectations for sale price?

只是為了結束這個循環——關於美聯儲並試圖出售它。我的意思是，你們是否必須實際降低對資產現在可以獲得的期望？我知道這與 ​​1 億美元的收益有關。我的意思是，你只是想盡快做到這一點嗎？顯然，您仍在嘗試以最有效的方式將其貨幣化並獲得最大價值，但您認為您必須降低對售價的期望嗎？

We are very focused on -- we believe we can manage both value and time. I think it's important to highlight that the majority of the earn-out was associated with one contract, which we were not successful with. We are under protest at this time. So if you look at the $50 million base purchase price, we're very focused on the core asset at that value and doing our best to manage both, getting to that value as well as doing it in the most expedited time line possible. We had anticipated a first quarter closing, so we're very focused on what can we do within the same time period.

我們非常專注於——我們相信我們可以管理價值和時間。我認為重要的是要強調，大部分收益與一份合約有關，但我們並沒有成功。我們此時正在抗議。因此，如果你看看 5000 萬美元的基本購買價格，我們非常專注於該價值的核心資產，並盡最大努力管理兩者，實現該價值並在盡可能最快的時間內實現這一目標。我們預計第一季會結束，因此我們非常關注在同一時間段內可以做什麼。

Got it. Got it. Okay. That's helpful.

知道了。知道了。好的。這很有幫助。

And then just on Aviation, obviously, very strong, strong demand backdrop there. Just -- can you help me reconcile it? I think, Steve, you called out the organic growth, maybe 24% ex Desser, I don't know if I have the math correct, but that seemingly implies maybe a $25 million contribution. Do I have that right? And I know you said $35 million for the year, but I didn't know if there was anything else sort of incorporated in that organic.

然後就航空業而言，顯然存在非常強勁的需求背景。只是──你能幫我協調一下嗎？我想，史蒂夫，你提到了有機增長，也許是 24%，前 Desser，我不知道我的數學是否正確，但這似乎意味著可能有 2500 萬美元的貢獻。我有這個權利嗎？我知道你說今年 3500 萬美元，但我不知道有機物中是否還包含其他任何東西。

You have the math correct. And so it does contribute $25 million in the quarter, and that's why I referenced that the business is performing better than expectations for the second half of the year. .

你的數學是正確的。因此，該季度確實貢獻了 2500 萬美元，這就是為什麼我提到該業務下半年的表現優於預期。 。

But to be super candid with you, as we get to know the business better and work with the teams more, I referenced the seasonality effect. Their third quarter does tend to be quite strong given the flight dynamics in the Europe region specifically, which is where they've got a large business. And we expect to see some level of decline there headed into the fourth quarter, hence the commentary. But yes, we're very pleased with the business's performance thus far and excited about working through the integration efforts.

但坦白說，隨著我們對業務的了解越來越深入，與團隊的合作越來越多，我提到了季節性效應。考慮到歐洲地區的航班動態，他們的第三季業績確實相當強勁，因為他們在歐洲地區擁有大量業務。我們預計第四季度將出現一定程度的下降，因此發表評論。但是，是的，我們對迄今為止的業務表現非常滿意，並對完成整合工作感到興奮。

Got it.

知道了。

Can you help us out? I know you called out the distribution of 46% and MRO of 54%. What -- can you parse out maybe the organic growth rates on those 2 lines?

你能幫助我們嗎？我知道您指出了 46% 的分配和 54% 的 MRO。什麼——你能解析出這兩條線的有機成長率嗎？

Yes, I'm happy to. The distribution side of the business is up 23% on an organic basis, and the repair business is up 26% on an organic basis. Repair tends to still kind of lead at this point. It's still driven a little bit by the commercial recovery dynamics. But I'd say, in both sides, distribution and repair, we still continue to see better than overall market results from an organic basis, so we're pleased.

是的，我很高興。分銷業務有機成長 23%，維修業務有機成長 26%。在這一點上，修復仍然處於領先地位。它仍然在一定程度上受到商業復甦動力的推動。但我想說，在分銷和維修方面，我們仍然繼續看到有機基礎上優於整體市場的結果，所以我們很高興。

Got it.

知道了。

And then I think you called out pricing as well. I mean we've heard from some other suppliers out there, they've gotten double-digit last year, high single this year. Can you maybe talk to what you're seeing on pricing maybe across both distribution and kind of MRO?

然後我想你也提到了定價。我的意思是，我們從其他一些供應商那裡聽說，他們去年的銷售額達到了兩位數，今年的銷售額達到了高位。您能否談談您在分銷和 MRO 方面的定價情況？

Yes. I think, Mike, so I'd say that obviously, 2023, we're not -- we're done, so what we have experienced is some results of some of the pricing efforts from the OEMs. We're starting to get the catalogs in now for 2024. My anticipation is that it's going to be a little bit more muted than we've seen in '23 and '22.

是的。我想，麥克，所以我想說，顯然，到 2023 年，我們還沒有——我們已經完成了，所以我們所經歷的是原始設備製造商的一些定價努力的一些結果。我們現在開始準備 2024 年的目錄。我的預期是，它會比我們在 23 年和 22 年看到的更平靜。

So we're just getting initial kind of data in. Ask me that question in 2 weeks at the -- at Investor Day, and I'll probably have more detail once we start going through the data. But I would anticipate 2024 price being less of an impact than we've seen in the last 2 years.

所以我們只是獲取初始數據。兩週後在投資者日問我這個問題，一旦我們開始查看數據，我可能會得到更多細節。但我預計 2024 年價格的影響將小於過去兩年。

Okay. Got it.

好的。知道了。

Last one, then I'll get out of the way here. Any implications for you guys on the positive side, given what's going on with the GTF and obviously, airlines may be being forced to fly older equipment longer, not having enough lift? And I guess the same holds true for just where the MAX is, I mean, what -- are you guys seeing potential tailwinds there?

最後一個，那我就離開這裡了。考慮到 GTF 的情況，航空公司可能被迫延長舊設備的飛行時間，因為沒有足夠的升力，這對你們有什麼正面的影響嗎？我想同樣的情況也適用於 MAX 所在的地方，我的意思是，你們看到那裡潛在的順風了嗎？

Yes. I'd say direct corollary, not a ton. Obviously, we don't support that program today. But I'd say to the second part of your question, will that lead to a longer life on some of these legacy assets and, therefore, more repair opportunities? We believe the answer is yes. And we continue to want to make sure that we're there to support our programs, whether it may be on the newer side or on the end of life side. So we're kind of trying to support all legs of the aircraft. And I think at this point, we continue to see robust demand.

是的。我想說的是直接推論，而不是很多。顯然，我們今天不支持該計劃。但我想說的是，對於你問題的第二部分，這是否會延長一些遺留資產的使用壽命，從而帶來更多的維修機會？我們相信答案是肯定的。我們仍然希望確保我們支持我們的項目，無論是新的項目還是即將停產的項目。所以我們試著支撐飛機的所有支架。我認為目前，我們仍然看到強勁的需求。

I think when we get to the Investor Day, we'll share more about our outlook headed into '24 and '25, give you a sense of where we think the markets are headed. They're certainly going to slow down from a year-over-year comp perspective. Commercial at this point has seen such a strong '23, it will start to moderate. We're seeing that in our business even in the third quarter on a year-over-year comp basis.

我認為，當我們到了投資者日時，我們將分享更多有關 24 和 25 年前景的信息，讓您了解我們認為市場的發展方向。從同比的角度來看，他們的增速肯定會放緩。商業在這一點上已經看到了23年如此強勁的勢頭，它將開始變得溫和。即使在第三季度，我們也能在我們的業務中看到這一點，即使在同比基礎上也是如此。

The next question comes from Josh Sullivan with The Benchmark Company.

下一個問題來自 Benchmark Company 的 Josh Sullivan。

Just as far as the Honeywell IP acquisition, what does that ramp look like? You talked about expanding the supply chain. Is there a qualification time line or a hiring need that we should think about?

就霍尼韋爾智慧財產權收購而言，這種成長是什麼樣的？您談到了擴大供應鏈。我們是否應該考慮資格時間表或招募需求？

There is both actually, you're thinking about it the right way. So to say is this is a great entry for us into this market. We -- I highlighted that we both have been distributing the product and repairing the product. This is much more of an assembly than a pure manufacturing, so we're working with the supply base and essentially assembling the fuel controls. That's our portion of the manufacturing. So if you think about it in our repair business today, we disassemble it, and we reassemble it. So we've got tremendous experience, but we do need the FAA approvals from a manufacturing perspective. That takes weeks and months, not years. And then we have a very strong team who understands this product line, but obviously, we're increasing staffing around that.

實際上兩者都有，你的思考方式是正確的。可以說，這是我們進入這個市場的一個很好的切入點。我強調，我們都在分發產品並修復產品。這更像是組裝，而不是純粹的製造，因此我們正在與供應基地合作，主要組裝燃油控制裝置。這是我們的製造部分。因此，如果您考慮我們今天的維修業務，我們會將其拆卸，然後重新組裝。因此，我們擁有豐富的經驗，但從製造角度來看，我們確實需要美國聯邦航空局的批准。這需要幾週和幾個月的時間，而不是幾年。然後我們有一個非常強大的團隊，他們了解這個產品線，但顯然，我們正在增加圍繞該產品線的人員配置。

The second thing I would add, because you see the revenue and earnings forecast that we had put out with the initial release and that Steve highlighted again today, is that we're sitting on legacy inventory. So we acquired inventory from Honeywell with, obviously, a Honeywell markup on it. We have to burn through that inventory, and then that margin capture that went to them now will come to us in the future. So as you look at the ramp, those are the steps to us getting to kind of the full ramp of both revenue and earnings potential on this program.

我要補充的第二件事是，因為你看到了我們在最初發佈時發布的收入和盈利預測，史蒂夫今天再次強調，我們正坐在遺留庫存上。因此，我們從霍尼韋爾購買了庫存，顯然，上面有霍尼韋爾的加價。我們必須消耗掉這些庫存，然後現在屬於他們的利潤將來也會屬於我們。因此，當您查看成長情況時，這些就是我們充分發揮該計劃的收入和獲利潛力的步驟。

And then curious if the deal's driven any incoming from other aerospace OEMs looking at the transaction as attractive or is this still in the outgoing (inaudible)?

然後好奇該交易是否推動了其他航空航太原始設備製造商認為該交易具有吸引力的收入，或者是否仍在傳出（聽不清楚）？

Yes. What I would say is that -- and I'll highlight this more on the Investor Day. When you look at the life cycle of the product, you have, at some point in time, many times an OEM says, okay, this is still in production but it's a majority of the uses in the aftermarket. I want to use my R&D dollars and my shop floor space to focus on newer production products that they're looking for an alternative source for that production, and there are suppliers and companies in the industry that do this. I think we have pleasantly surprised the market with our ability to additionally support this. And this, coupled with our ability to distribute the product successfully and repair the products successfully, which is what our core business is, this really just adds an additional channel for us, and we are having dialogue with OEMs at this point.

是的。我想說的是——我將在投資者日進一步強調這一點。當你觀察產品的生命週期時，你會發現，在某個時間點，原始設備製造商很多次都會說，好吧，這仍然在生產，但它是售後市場的大部分用途。我想利用我的研發資金和車間空間專注於更新的生產產品，他們正在尋找該生產的替代來源，並且業內有供應商和公司這樣做。我認為我們有能力額外支持這一點，這讓市場感到驚訝。再加上我們成功分銷產品和成功維修產品的能力（這是我們的核心業務），這實際上只是為我們增加了一個額外的管道，目前我們正在與 OEM 進行對話。

What I would tell you though is don't expect -- and I don't normally give forecast on deals. Don't expect us to announce another deal like this in the coming months. We really want to make sure we do this right. This is the first time we're doing this, and we're going to do this right and really impress the market before we consider another transaction of this type. But there are definitely others out there for the future.

但我要告訴你的是，不要期待——而且我通常不會對交易做出預測。不要指望我們會在未來幾個月內宣布另一項類似的交易。我們真的想確保我們做得正確。這是我們第一次這樣做，在我們考慮另一次此類交易之前，我們將做得正確並真正給市場留下深刻印象。但未來一定還有其他人。

Got it.

知道了。

And then maybe just switching over to Fleet, the expansion of the installed USPS Fleet. We've seen some large auto OEMs pull back on some EV development plans. How is the post office looking at its existing ice fleet at this point?

然後也許只是切換到 Fleet，即已安裝的 USPS 艦隊的擴展。我們已經看到一些大型汽車原始設備製造商取消了一些電動車開發計劃。郵局目前如何看待其現有的冰車隊？

Yes. I think the numbers, the forecasts that have been previously shared, there doesn't appear to be any tremendous shift in that forecast so there will be a small portion of their fleet that will be EV. But the biggest thing that's happened is, number one, they've grown the fleet size, and that's a permanent growth to the fleet size.

是的。我認為之前分享的數字和預測似乎沒有任何巨大的變化，因此他們的車隊中將有一小部分是電動車。但發生的最重要的事情是，第一，他們擴大了機隊規模，這是機隊規模的永久性成長。

The second thing is how they've grown that is not through the NGDV, the next-generation vehicle, whether electric or combustible engine. What they're doing is buying commercial off-the-shelf vehicles. So whether they're Mercedes Metris, whether they're some other types of commercial, off-the-shelf vehicles. So they're building a more complex fleet type that will continue to have a tremendous amount of non-EV type vehicles.

第二件事是它們的發展方式不是透過下一代汽車 NGDV（無論是電動車還是燃油引擎）來實現的。他們正在做的是購買現成的商用車輛。因此，無論它們是 Mercedes Metris，還是其他類型的商用現成車輛。因此，他們正在建造一種更複雜的車隊類型，其中將繼續擁有大量非電動車。

That said, our plan is to support all fleet types, and we look at the -- Postal Service is a really launch pilot customer to us in supporting EV medium-duty fleet vehicles. So continue to see strong activity there for the near term. And we don't have the real forecast yet of when that NGDV will be delivered. As we get that, we'll share any impacts we think that may have to the business.

也就是說，我們的計劃是支持所有車隊類型，我們著眼於——郵政服務是我們支持電動中型車隊車輛的真正啟動試點客戶。因此，短期內繼續看到那裡的強勁活動。我們還沒有 NGDV 何時交付的真正預測。當我們了解到這一點時，我們將分享我們認為可能對業務產生的任何影響。

(Operator Instructions) The next question comes from Jeff Van Sinderen with B. Riley.

（操作員說明）下一個問題來自 Jeff Van Sinderen 和 B. Riley。

Just wanted to follow up on the Memphis facility. Just wondering maybe if you can touch on incremental efficiencies to be realized there in the future?

只是想跟進孟菲斯工廠的情況。只是想知道您是否可以談談未來要實現的增量效率？

Yes. Thanks, Jeff.

是的。謝謝，傑夫。

The way that we've built this this kind of model, remember, we started literally from 0 in January. We launched in the middle of the first quarter, completely new IT system, new facility, new infrastructure. So we're essentially, if you look at our chart, you're kind of increasing productivity and revenue out of the site, then we're plateauing and stabilizing, and then we're doing the same thing again, plateauing and stabilizing. So what you in the third quarter was really a more plateau period, and what you'll see in the fourth quarter is the next phase of kind of revenue ramp, and then again, plateau again. So as we go through that ramp, we continue to look at where we're going to have productivity improvements.

請記住，我們建立這種模型的方式是從 1 月的 0 開始的。我們在第一季中期推出了全新的IT系統、新架構、新基礎架構。所以，如果你看一下我們的圖表，你會發現網站的生產力和收入有所提高，然後我們就趨於穩定，然後我們再次做同樣的事情，趨於穩定。因此，第三季度實際上是一個更穩定的時期，而第四季度您將看到下一階段的收入成長，然後再次進入穩定期。因此，當我們經歷這個階段時，我們會繼續研究如何提高生產力。

What is going to drive margin improvement over time? There's an element on supply chain on cost and pricing, but the other element is just: a, scale through that facility; and b, then we look at continuous improvement both in terms of processes. And really in late 2024, we'll talk about automation and the impacts that will make, but we've got to get the facility stabilized before we add the automation in. But you can expect this to be a continuous improvement in margin improvement plan over the next 2 years.

隨著時間的推移，什麼會推動利潤率的提升？供應鏈上有一個關於成本和定價的要素，但另一個要素是：a、透過該設施實現規模化； b，然後我們著眼於流程方面的持續改進。實際上，到 2024 年末，我們將討論自動化及其產生的影響，但在添加自動化之前，我們必須先讓設施穩定下來。但您可以預期，這將是利潤改善計劃的持續改進未來2年。

Okay. That's helpful.

好的。這很有幫助。

And then I know you mentioned some seasonality at Desser for Q4. Just I guess anything else you're learning about Desser as you're integrating there?

然後我知道您提到了 Desser 第四季度的一些季節性因素。我猜你在融入 Desser 的過程中還了解到了哪些關於 Desser 的資訊？

I mean, as thrilled with the acquisitions, thrilled with the diligence that my team did, it's exactly as expected to see as far as they outperformed in the first quarter, a great culture, great level of alignment. It's a great addition to the VSE Aviation portfolio.

我的意思是，正如對收購感到興奮，對我的團隊所做的勤奮感到興奮一樣，他們在第一季度的表現完全符合預期，這是一種偉大的文化，高度的一致性。它是 VSE Aviation 產品組合的重要補充。

So their business wasn't fully integrated. So they were running the business under different IT platforms, so we basically are breaking it up into a number of smaller integrations. But integrations are on track or slightly ahead of pace, and very excited for what's ahead for 2024.

所以他們的業務沒有完全整合。他們在不同的 IT 平台下運行業務，所以我們基本上將其分解為許多較小的整合。但整合已步入正軌或略超前，我們對 2024 年的前景感到非常興奮。

Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Mr. John Cuomo for any closing remarks. Over to you, sir.

謝謝。我們的問答環節到此結束。我想將會議轉交約翰·科莫先生發表閉幕詞。交給你了，先生。

Thank you, everybody, for joining our conference call today. We look forward to seeing many of you on November 14 in New York at our first Investor Day, and appreciate the continued support and interest in VSE. Have a great rest of your day.

感謝大家今天參加我們的電話會議。我們期待 11 月 14 日在紐約舉行的第一個投資者日見到你們，並感謝大家對 VSE 的持續支持和興趣。祝您有個愉快的一天。

Thank you.

謝謝。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。