VSE Corp (VSEC) 2023 Q4 法說會逐字稿

Good morning, and welcome to the VSE Corporation fourth-quarter and 2023 results conference call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 VSE 公司第四季和 2023 年業績電話會議。（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Michael Perlman, Vice President, Investor Relations and Treasury. Please go ahead.

我現在想將會議交給投資者關係和財務副總裁 Michael Perlman。請繼續。

Thank you, Megan. Welcome to VSE Corporation's fourth-quarter and 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.

謝謝你，梅根。歡迎參加 VSE Corporation 第四季和 2023 年業績電話會議。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 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.

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。

Except as required by law, we undertake no obligation to update our forward-looking statements. We are using non-GAAP financial measures in our presentation. Where available, the appropriate 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. At the conclusion of our prepared remarks, we will open the line for questions.

除法律要求外，我們不承擔更新前瞻性聲明的義務。我們在演示中使用非公認會計準則財務指標。如果有的話，適當的 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。在我們準備好的發言結束後，我們將開放提問熱線。

With that, I would like to turn the call over to John.

說到這裡，我想把電話轉給約翰。

Thank you, Michael. Welcome, everyone, and thank you for joining our call today. I'm very pleased and proud to speak today to share both the outstanding record business results from 2023 and the significant progress and updates on our business strategy and transformation.

謝謝你，麥可。歡迎大家，感謝您今天加入我們的電話會議。我今天非常高興和自豪地發言，分享 2023 年出色的創紀錄業務成果以及我們業務策略和轉型的重大進展和更新。

Let's start on slide 3 of our presentation materials. First, last week, we announced an agreement to acquire Turbine Controls or TCI, a leading provider of aviation aftermarket maintenance repair and overhaul support services, supporting complex engine components as well as engine and airframe accessories. TCI has a strong presence across a large installed base of engine platforms, including those supporting several key next-generation aircraft.

讓我們從簡報資料的幻燈片 3 開始。首先，上週，我們宣布達成協議，收購 Turbine Controls 或 TCI，這是一家領先的航空售後維護和大修支援服務提供商，為複雜的引擎零件以及引擎和機身配件提供支援。TCI 在龐大的發動機平台安裝基地中擁有強大的影響力，包括支援幾款關鍵的下一代飛機的平台。

The business operates from two MRO centers of excellence in Connecticut and Florida, offering engine component repair and accessory capabilities, including rotating and static engine components, reduction transfer and accessory gearboxes, as well as pneumatic hydraulic fuel and oil accessories.

該業務由位於康乃狄克州和佛羅裡達州的兩個 MRO 卓越中心運營，提供引擎零件維修和配件能力，包括旋轉和靜態引擎零件、減速變速箱和配件變速箱，以及氣動液壓燃油和機油配件。

This is a very exciting addition to the VSE family. TCI's 45-year history of customer excellence, industry-leading MRO capabilities, and OEM partner-focused strategy align with VSE's go-to-market value proposition and long-term OEM support strategy.

這是 VSE 系列的一個非常令人興奮的新成員。TCI 45 年的卓越客戶歷史、業界領先的 MRO 能力以及以 OEM 合作夥伴為中心的策略與 VSE 的上市價值主張和長期 OEM 支援策略相一致。

We expect to acquire TCI for a total consideration of $120 million, comprised of $110 million in cash and $10 million of VSE common shares, subject to working capital adjustments. Steve will share additional financial detail shortly in his prepared remarks.

我們預計將以 1.2 億美元的總價收購 TCI，其中包括 1.1 億美元現金和 1,000 萬美元 VSE 普通股，具體金額需根據營運資本調整而定。史蒂夫將很快在他準備好的演講中分享更多財務細節。

Next, we completed the sale of substantially all of our federal and defense operating assets This marks a very important milestone in the execution of VSE's transformation to an industry leader of aftermarket distribution and repair solutions. We are pleased to find a good home for the FDS assets and their team and close this chapter of our business transformation plan.

接下來，我們完成了幾乎所有聯邦和國防營運資產的出售，這標誌著 VSE 轉型為售後分銷和維修解決方案行業領導者的過程中的一個非常重要的里程碑。我們很高興為 FDS 資產及其團隊找到了一個好的歸宿，並結束了我們業務轉型計劃的這一章。

The divestiture of FDS was completed in February with two separate transactions to two different buyers for a total cash consideration of $44 million, which includes a $10 million estimated working capital adjustment. Associated with the sale of FDS, we will wind down the operation of the one remaining non-core FDS facility that was not included in either transaction. We expect to complete all transition work by the end of the second quarter.

FDS 的剝離於 2 月完成，向兩個不同的買家進行了兩筆單獨的交易，總現金對價為 4400 萬美元，其中包括 1000 萬美元的估計營運資本調整。與 FDS 的出售相關，我們將結束剩餘的一個非核心 FDS 設施的運營，該設施未包含在任何一項交易中。我們預計在第二季末完成所有過渡工作。

And finally, as we focus on driving long-term value for our stakeholders, evaluating our portfolio to ensure we are best positioned to execute on our strategic objectives and strengthen our balance sheet, we announced we initiated a process to explore and evaluate strategic alternatives for our fleet segment. We have only just begun this process and plan to provide an update later in the year.

最後，當我們專注於為利害關係人帶來長期價值、評估我們的投資組合以確保我們能夠最好地執行我們的策略目標並加強我們的資產負債表時，我們宣布我們啟動了一個流程來探索和評估策略替代方案我們的機隊部分。我們才剛開始這個過程，並計劃在今年稍後提供更新。

I'd like to take a moment to recognize Chad Wheeler, Group President of the fleet segment. Chad has been with the business for more than 32 years and will transition from his position as fleet segment Group President later this year. Chad has led this business through many industry changes and most recently our successful customer diversification strategy. I'm appreciative and thankful for his leadership.

我想花點時間向機隊部門集團總裁查德惠勒 (Chad Wheeler) 致意。Chad 在該公司工作超過 32 年，將於今年稍後卸任車隊部門集團總裁一職。查德帶領該業務經歷了許多行業變革以及最近我們成功的客戶多元化策略。我對他的領導表示讚賞和感謝。

Let's now move to slide 4, where I will provide an update on our 2023 performance. 2023 was an outstanding year, supported by new business wins, strategic acquisitions, product and capability additions, record revenue for both our aviation and fleet segment, and company-wide record profitability.

現在讓我們轉到幻燈片 4，我將在其中提供 2023 年業績的最新資訊。 2023 年是出色的一年，得益於新業務的贏得、策略性收購、產品和能力的增加、我們的航空和機隊部門創紀錄的收入以及全公司創紀錄的盈利能力。

2023 was a milestone year for our aviation segment with revenue growth of 33%. Supporting the revenue growth and strong plan ahead were many successes to highlight. We acquired a market-leading technical MRO, Precision Fuel Controls, early in the year and fully integrated the business before year end. We completed the acquisition of Desser Aerospace, a global aftermarket solutions provider of specialty distribution and MRO services. And we are already realizing synergies as we prepare for integration this year.

2023 年是我們航空部門具有里程碑意義的一年，收入成長了 33%。支持收入成長和強有力的未來計劃是許多值得強調的成功。我們在年初收購了市場領先的技術 MRO、Precision Fuel Controls，並在年底前全面整合了這項業務。我們完成了對 Desser Aerospace 的收購，這是一家專業分銷和 MRO 服務的全球售後解決方案提供商。當我們為今年的整合做準備時，我們已經實現了協同效應。

We were awarded and launched multiple new distribution awards, including a geographic expansion into Asia Pacific, supporting a marquee OEM partner, as well as a new distribution award supporting Europe, Middle East, and Africa customers. We acquired the rights to exclusively manufacture and support certain Honeywell fuel control systems, marking a key strategic expansion into OEM license manufacturing. And we expanded the capabilities and offerings at our MRO shops, driving record revenue across all VSE MRO facilities while improving overall margin rate.

我們獲得並推出了多個新的分銷獎項，包括向亞太地區擴張、支持大型 OEM 合作夥伴，以及支持歐洲、中東和非洲客戶的新分銷獎項。我們獲得了獨家製造和支援某些霍尼韋爾燃油控制系統的權利，標誌著向 OEM 許可製造領域的關鍵策略擴張。我們擴展了 MRO 商店的功能和產品，推動所有 VSE MRO 設施的收入創紀錄，同時提高了整體利潤率。

Our fleet segment also reported record revenue for the full year with a 21% increase in sales, supported by growth in our commercial fleet sales channel, fueled by an expanded product offering to both new and existing customers; the successful launch and scaling of our new Memphis e-commerce center of excellence and distribution center, driving higher volume throughput and establishing our fleet segment as a key partner and market disruptor in the fast-growing e-commerce automotive aftermarket; and continued support with an increased breadth of products to support all vehicle types for the USPS.

我們的車隊部門也報告了全年創紀錄的收入，銷售額增長了 21%，這得益於我們的商業車隊銷售管道的增長，以及向新客戶和現有客戶提供的產品範圍的擴大；我們新的孟菲斯電子商務卓越中心和配送中心的成功啟動和擴展，推動了更高的吞吐量，並將我們的車隊部門確立為快速增長的電子商務汽車售後市場的關鍵合作夥伴和市場顛覆者；並繼續提供更廣泛的產品支持，以支援 USPS 的所有車輛類型。

I'm very proud of the VSE team and how we came together to support our customer and supplier partners, how we executed on our strategy with new business wins and strong program execution, how we integrated acquisitions and brought businesses together, how we continued to build the VSE brand in our markets, and how we performed. We have a results-driven culture and broke records in revenue and profit in 2023.

我為VSE 團隊感到非常自豪，我們如何團結起來支持我們的客戶和供應商合作夥伴，我們如何透過新業務贏得和強大的計劃執行來執行我們的策略，我們如何整合收購並將業務整合在一起，我們如何繼續在我們的市場中打造 VSE 品牌以及我們的表現。我們擁有以結果為導向的文化，並在 2023 年打破了收入和利潤記錄。

I will now turn the call over to Steve for an update on our financial performance.

我現在將把電話轉給史蒂夫，以了解我們財務表現的最新情況。

Thanks, John. Let's turn to slides 5 and 6 of the conference call materials to provide an overview of our fourth-quarter and full year-2023 financial performance.

謝謝，約翰。讓我們來看看電話會議資料的幻燈片 5 和 6，概述我們第四季度和 2023 年全年的財務表現。

Let's begin with our fourth-quarter results. VSE generated $235 million of revenue in the quarter, an increase of 37%, led by aviation, up 43%, and fleet of 26%. Adjusted EBITDA of $31 million increased 46% or $10 million versus the fourth quarter of 2022. Aviation drove $8 million of this growth and fleet drove $2 million of growth. Adjusted net income increased 62% to $13 million, and adjusted diluted earnings per share increased 31% to $0.85 per share.

讓我們從第四季的業績開始。VSE 本季營收為 2.35 億美元，成長 37%，其中航空業成長 43%，機隊成長 26%。調整後 EBITDA 為 3,100 萬美元，較 2022 年第四季成長 46%，即 1,000 萬美元。航空業推動了 800 萬美元的成長，機隊推動了 200 萬美元的成長。調整後淨利成長 62%，達到 1,300 萬美元，調整後攤薄每股收益成長 31%，達到每股 0.85 美元。

For the full-year 2023, we recorded $861 million in revenue, up 29% versus 2022, driven by growth in both operating segments but primarily by a 33% or $136 million increase in our Aviation segment. Consolidated adjusted EBITDA for the year was $114 million, an increase of 45% or $35 million as compared to 2022.

2023 年全年，我們的營收為 8.61 億美元，比 2022 年成長 29%，這主要得益於兩個營運部門的成長，但主要是航空部門成長 33%，即 1.36 億美元。本年度綜合調整後 EBITDA 為 1.14 億美元，比 2022 年成長 45%，即 3,500 萬美元。

Aviation EBITDA grew $35 million and fleet grew $3 million, which was slightly offset by $3 million of higher corporate expenses associated with the FDS divestiture. Adjusted net income increased 60% to $47 million, and adjusted diluted earnings per share increased 45% to $3.31 per share.

航空業 EBITDA 成長了 3,500 萬美元，機隊成長了 300 萬美元，但被與 FDS 剝離相關的 300 萬美元公司支出增加所略微抵消。調整後淨利成長 60%，達到 4,700 萬美元，調整後攤薄每股收益成長 45%，達到每股 3.31 美元。

Now turning to slide 7, we'll cover our aviation segment fourth-quarter and full-year results in more detail. Starting with the quarter, revenue increased 43% versus the fourth quarter of 2022 to a record $154 million. Both distribution and MRO businesses were strong contributors, up 41% and 49%, respectively. Excluding recent acquisitions, the aviation segment increased 18% as compared to the prior year. Desser Aerospace, which was acquired in the third quarter of 2023, had a strong fourth quarter, generating $23 million in sales.

現在轉向投影片 7，我們將更詳細地介紹航空部門第四季和全年的業績。從本季開始，營收較 2022 年第四季成長 43%，達到創紀錄的 1.54 億美元。分銷和 MRO 業務貢獻強勁，分別成長 41% 和 49%。不包括近期收購，航空業務較上年成長 18%。Desser Aerospace 於 2023 年第三季收購，第四季業績強勁，銷售額達 2,300 萬美元。

Distribution revenue increased by 41%, driven by the ramp up of new for OEM programs, including those recently launched in the Asia Pacific region. The strength of existing program execution, new geographic expansion, and contributions from the Desser acquisition has set a strong foundation for success.

由於新的 OEM 計劃（包括最近在亞太地區推出的計劃）的增加，分銷收入增長了 41%。現有專案執行的實力、新的地理擴張以及收購 Desser 的貢獻為成功奠定了堅實的基礎。

The recent acquisition of the Honeywell fuel control program did not have a material impact in the quarter, however, remains on track for transition throughout 2024 as VSE captures new margin and repair opportunities from this important product line.

最近收購的霍尼韋爾燃油控制項目並未對本季產生重大影響，但隨著 VSE 從這一重要產品線中抓住新的利潤和維修機會，該項目仍有望在 2024 年全年實現轉型。

MRO revenue increased by 49%, driven by the ramp up of new programs, market share gains, new repair capabilities, improved throughput in our MRO shops, and the addition of Desser. We continue to drive scale on our existing MRO footprint, which has led to strong profitability and margin expansion.

由於新項目的增加、市場份額的增加、新的維修能力、MRO 車間吞吐量的提高以及 Desser 的增加，MRO 收入增長了 49%。我們持續擴大現有 MRO 業務規模，從而帶來強勁的獲利能力和利潤率擴張。

Aviation adjusted EBITDA increased by 52% in the quarter to $24 million, while adjusted EBITDA margins increased by 90 basis points to 15.6%. Contributions from new distribution programs, market share gains within MRO, operating leverage, and progress on margin improvement initiatives drove the improvement in profitability.

該季度航空業調整後 EBITDA 成長 52%，達到 2,400 萬美元，調整後 EBITDA 利潤率成長 90 個基點，達到 15.6%。新分銷計劃的貢獻、MRO 內的市場份額增長、營運槓桿以及利潤率改善計劃的進展推動了盈利能力的提高。

Now for the full-year 2023, aviation generated record revenue of $544 million, an increase of 33% year over year. Adjusted EBITDA increased 68% to $87 million, and adjusted EBITDA margins were up 330 basis points to 16.1%, all record results for the segment.

2023 年全年，航空業創造了創紀錄的收入 5.44 億美元，年增 33%。調整後 EBITDA 成長 68%，達到 8,700 萬美元，調整後 EBITDA 利潤率成長 330 個基點，達到 16.1%，皆為該部門的創紀錄業績。

We are reaffirming our expectations for full-year 2024 revenue growth of 24% to 28%, driven by strong aviation end markets, recently announced new business awards, additional organic growth opportunities, and a full-year impact of the Desser acquisition. We expect our 2024 full-year adjusted EBITDA margins to be between 15% and 16% as we work through the increased expenses associated with the recently announced Honeywell fuel control program and the buildout of our new European operations.

在強勁的航空終端市場、最近宣布的新業務獎項、額外的有機成長機會以及收購 Desser 的全年影響的推動下，我們重申對 2024 年全年收入增長 24% 至 28% 的預期。我們預計 2024 年全年調整後 EBITDA 利潤率將在 15% 至 16% 之間，因為我們正在努力解決與最近宣布的霍尼韋爾燃油控制計劃和擴大新歐洲業務相關的費用增加問題。

We're excited about the recently announced acquisition of Turbine Controls, its growth prospects, and strategic alignment with VSE Aviation. We expect TCI to generate approximately $85 million in revenue and $12 million of EBITDA in its full-year 2024, of which VSE will recognize a portion in 2024 following the closing of the transaction. VSE will provide an update to our full-year revenue and EBITDA guidance following the closing expected in the second quarter.

我們對最近宣布的 Turbine Controls 收購、其成長前景以及與 VSE Aviation 的策略聯盟感到興奮。我們預計 TCI 在 2024 年全年將產生約 8,500 萬美元的收入和 1,200 萬美元的 EBITDA，其中 VSE 將在 2024 年交易完成後確認其中的一部分。VSE 將在第二季度預計結束後提供全年收入和 EBITDA 指引的更新。

Now turning to slide 8 for our fleet segment fourth-quarter and full-year results. In the fourth quarter, fleet segment revenue increased 26% to $82 million, driven by strong growth in e-commerce fulfillment and commercial fleet sales, partially offset by lower USPS revenue.

現在轉向投影片 8，了解我們機隊部門第四季和全年的業績。第四季度，由於電子商務履行和商業車隊銷售的強勁增長，車隊部門收入增長了 26%，達到 8,200 萬美元，但部分被 USPS 收入下降所抵消。

Commercial revenue was $43 million in the fourth quarter, an increase of 72% versus the prior year and a 14% increase as compared to the third quarter of 2023. Commercial revenue now represents 52% of total fleet segment sales as compared to 38% in the same period in the prior year. This is the first time in our fleet segment history that our commercial customers have generated more than 50% of our revenue.

第四季商業收入為 4,300 萬美元，較上年增長 72%，較 2023 年第三季增長 14%。商業收入目前佔車隊部門總銷售額的 52%，去年同期為 38%。這是我們機隊歷史上第一次我們的商業客戶創造了我們超過 50% 的收入。

United States Postal Service revenue declined approximately 3% versus the fourth quarter of last year, which is included within our other government channel. Fleet remains well positioned to support all USPS vehicle types.

美國郵政服務收入比去年第四季下降了約 3%，這已包含在我們的其他政府管道中。車隊仍然能夠很好地支援所有 USPS 車輛類型。

In line with our remarks at the November Investor Day, we do expect to see declines in revenue as the mix of aftermarket products shifts to support newer vehicles. However, we remain focused on expanding our offerings for the new vehicles as they exit their initial warranty periods in the coming years. Segment adjusted EBITDA increased 24% to $10 million, driven by increased sales volume. Adjusted EBITDA margin was down 20 basis points to 12%, driven by an increased mix of commercial customers.

根據我們在 11 月投資者日的講話，我們確實預計隨著售後市場產品組合轉向支援更新車輛，收入將會下降。然而，隨著新車在未來幾年結束最初的保固期，我們仍然專注於擴大我們的產品範圍。由於銷售量增加，部門調整後 EBITDA 成長了 24%，達到 1,000 萬美元。由於商業客戶組合增加，調整後 EBITDA 利潤率下降 20 個基點至 12%。

For the full-year 2023, the fleet segment generated record revenue of $317 million, driven by strong growth in e-commerce fulfillment, led by our recently launched distribution center of excellence in Memphis, Tennessee, commercial fleet sales growth, and solid contributions from the USPS total adjusted EBITDA of $37 million was up 11%. Adjusted EBITDA margins were 11.6%, down 110 basis points versus 2022, driven by customer mix and start-up expenses associated with the launch of our new Memphis facility.

2023 年全年，車隊業務收入創紀錄地達到3.17 億美元，這主要得益於電子商務履行的強勁增長（以我們最近在田納西州孟菲斯成立的卓越配送中心為主導）、商業車隊銷售增長以及來自以下公司的堅實貢獻： USPS 調整後 EBITDA 總額為 3700 萬美元，成長 11%。調整後的 EBITDA 利潤率為 11.6%，比 2022 年下降 110 個基點，主要受到客戶組合和與孟菲斯新工廠啟動相關的啟動費用的推動。

As shared last week with our prerelease of earnings, we have revised our 2024 fleet segment revenue growth outlook to 13% to 17%, primarily as a result of lower USPS. volume in the first half of 2024, driven by vehicle part replacement mix. We now expect full year-USPS revenue to be down 8% to 12% year over year and down low double digits in the first half, improving sequentially in the second half of 2024.

正如我們上週在預發布的財報中所分享的那樣，我們已將 2024 年機隊部門收入增長前景修正為 13% 至 17%，這主要是由於 USPS 下降。 2024 年上半年的銷售量由車輛零件更換組合推動。我們現在預計 USPS 全年營收將年減 8% 至 12%，上半年將下降兩位數，2024 年下半年將較上季改善。

Full-year 2024 segment revenue growth will be driven by higher commercial sales expected to be up between 40% and 50% year over year, again, after a 45% increase in 2023. Commercial demand continues to be robust, and we remain confident in our ability to scale and optimize our recently launched Memphis distribution facility.

2024 年全年細分市場收入成長將受到商業銷售額增加的推動，預計繼 2023 年增長 45% 後，商業銷售額將再次同比增長 40% 至 50%。商業需求持續強勁，我們對擴展和優化最近推出的孟菲斯配送設施的能力充滿信心。

In line with these revised forecasts, we also revised expectations for adjusted EBITDA dollar growth to 8% to 12% due to the increased mix of commercial customers. In 2024, our focus will be driving year-over-year growth in revenue and profit as we scale our Memphis distribution facility, add new commercial fleet customers, and increase our market share and product offerings on the new vehicle platforms being introduced by the USPS.

根據這些修訂後的預測，由於商業客戶組合的增加，我們還將調整後 EBITDA 美元成長的預期修訂為 8% 至 12%。到 2024 年，我們的重點將是推動收入和利潤的同比增長，擴大孟菲斯配送設施的規模，增加新的商業車隊客戶，並增加美國郵政局推出的新車輛平台上的市場份額和產品供應。

Turning to slide 9, in the fourth quarter, we generated $28 million of operating cash flow and $20 million of free cash flow, driven by disciplined cash management and strong operating results. At the end of the fourth quarter, we amended and extended our credit facility, providing for an additional $122 million of capacity and extended the term by one year to October 2026, allowing us flexibility to finance our near-term capital investments, including the first-quarter cash outflow for the Pratt & Whitney Canada-European distribution program, aviation CapEx for MRO expansion, and our recently announced TCI acquisition.

轉向幻燈片 9，在嚴格的現金管理和強勁的經營業績的推動下，第四季度我們產生了 2800 萬美元的營運現金流和 2000 萬美元的自由現金流。在第四季末，我們修改並延長了我們的信貸安排，額外提供了1.22 億美元的產能，並將期限延長一年至2026 年10 月，使我們能夠靈活地為近期資本投資提供融資，包括第一筆投資。

Total net debt outstanding at year end was $422 million. Pro forma net leverage, which includes the trailing 12 months results from prior acquisitions, was 3.4 times, in line with the guidance provided at the November Investor Day.

年末未償淨債務總額為 4.22 億美元。預計淨槓桿率（包括先前收購的過去 12 個月業績）為 3.4 倍，與 11 月投資者日提供的指導一致。

As we move into the first quarter, we expect our pro forma net leverage ratio to increase to approximately 3.8 times, primarily driven by the first-quarter initial provisioning of inventory supporting the recently announced Pratt & Whitney European distribution award, timing of outflows for recent inventory purchases, and the effects of the sale of our federal and defense segment.

隨著我們進入第一季度，我們預計我們的預期淨槓桿將增加至約3.8 倍，這主要是由於支持最近宣布的普惠歐洲分銷獎的第一季初始庫存撥備、近期資金流出的時機所推動。

Following the completion of the TCI acquisition in the second quarter, we anticipate our pro forma net leverage ratio to increase to approximately 4.1 times and improve sequentially through the remainder of 2024.

在第二季完成 TCI 收購後，我們預計我們的淨槓桿率預計將增至約 4.1 倍，並在 2024 年剩餘時間內持續改善。

And we expect to generate strong second-half free cash flow and deliver improved EBITDA from our recently launched programs, capabilities, expansions, and acquisitions. This strategic acquisition follows our capital allocation framework laid out in November of temporarily increasing net leverage following an acquisition with a path to quickly delever by year end.

我們預計下半年將產生強勁的自由現金流，並透過我們最近推出的計劃、能力、擴張和收購來提高 EBITDA。此次策略收購遵循我們 11 月制定的資本配置框架，即在收購後暫時增加淨槓桿，並在年底前快速去槓桿化。

I'd like to take a moment to provide details associated with the recently announced FTS divestitures. We expect to complete all FTS divestiture transition work by the end of the second quarter associated with these transactions.

我想花點時間提供與最近宣布的 FTS 資產剝離相關的詳細資訊。我們預計在第二季末完成與這些交易相關的所有 FTS 剝離過渡工作。

We expect to record one-time transaction expenses between $6 million and $8 million in the first quarter associated with non-recurring fees and costs in support of the two transactions. The company also expects to record $6 million non-cash impairment charges related to the asset not included in the sale.

我們預計第一季的一次性交易費用將在 600 萬至 800 萬美元之間，與支援兩項交易的非經常性費用和成本相關。該公司還預計將記錄與未包含在出售中的資產相關的 600 萬美元非現金減損費用。

Lastly, VSE has announced it's considering a corporate restructuring plan and headquarters relocation, which could result in certain adjustments to our consolidated financial statements ranging between $18 million and $23 million throughout 2024, depending on the resolution of certain contract and leasing agreements. These actions will eliminate unnecessary corporate expenses and streamline our operational footprint.

最後，VSE 宣布正在考慮公司重組計劃和總部搬遷，這可能會導致我們的合併財務報表在 2024 年全年進行 1800 萬至 2300 萬美元的調整，具體取決於某些合約和租賃協議的解決方案。這些行動將消除不必要的公司開支並簡化我們的營運足跡。

With that, I would now like to turn the call back over to John.

有了這個，我現在想把電話轉回給約翰。

Thank you, Steve. I'd like to conclude our prepared remarks by reviewing our 2024 priorities on slide 10. 2024 the year of execution. Let's begin with our aviation segment. First, our new Hamburg, Germany distribution center is open and shipping product as of January.

謝謝你，史蒂夫。我想透過回顧投影片 10 上的 2024 年優先事項來結束我們準備好的發言。讓我們從航空部門開始。首先，我們新的德國漢堡配送中心已開業，並於一月開始出貨。

Our initial focus for that facility is the execution of our Pratt & Whitney Canada program and supporting the Europe, Middle East, and Africa customers with products and services under that agreement. We will expand this facility's usage to support other products later in the year.

我們對該工廠的最初重點是執行普惠加拿大計劃，並根據該協議為歐洲、中東和非洲客戶提供產品和服務。我們將在今年稍後擴大該設施的用途以支持其他產品。

Second is a transition of our newly acquired fuel control systems program, where we became the licensed manufacturer for over 340 unique fuel controls spanning 120 platforms, serving the business in general aviation and rotorcraft markets. And finally is the integration of the Desser Aerospace acquisition, which includes full-system and organizational integration. This project is underway and will continue throughout the year.

其次是我們新收購的燃油控制系統專案的轉型，我們成為跨越 120 個平台的 340 多種獨特燃油控制系統的授權製造商，為通用航空和旋翼機市場業務提供服務。最後是對 Desser Aerospace 收購的整合，其中包括全系統和組織整合。該項目正在進行中，並將持續全年。

Our next focus is on the Turbine Controls acquisition. We expect to complete the acquisition in the second quarter and build upon the strong VSE and TCI OEM relationships to drive strong 2024 performance and a combined growth strategy for the business.

我們的下一個重點是渦輪控制公司的收購。我們預計將在第二季完成收購，並以 VSE 和 TCI OEM 的強大關係為基礎，推動 2024 年強勁的業績和業務的全面成長策略。

Moving to our fleet segment, we remain focused on organic growth and our customer diversification strategy. We plan to drive commercial growth as we continue to scale our new distribution and e-commerce fulfillment center while continuing to support the US Postal Service vehicle fleet transition.

轉向我們的機隊部門，我們仍然專注於有機成長和客戶多元化策略。我們計劃繼續擴大新的配送和電子商務履行中心的規模，同時繼續支持美國郵政服務車隊轉型，從而推動商業成長。

As we execute our 2024 operating plans, we remain focused on building upon the financial discipline and successes of last year. We are forecasting another year of above-market growth for both business segments, growing profitably, and generating solid free cash flow in the back half of the year.

在執行 2024 年營運計畫時，我們仍然專注於鞏固財務紀律和去年的成功。我們預計這兩個業務部門將在今年下半年實現高於市場水平的成長，獲利成長，並產生穩定的自由現金流。

Finally, we expect to continue to make progress on our strategic transformation, including completing the transition of the federal and defense segment divestitures, repositioning our Virginia headquarters facility and exploring strategic alternatives for our fleet segment.

最後，我們希望繼續在戰略轉型方面取得進展，包括完成聯邦和國防部門剝離的過渡、重新定位我們的維吉尼亞總部設施以及探索我們機隊部門的戰略替代方案。

I'm so very proud of our 2023 results, all that we accomplished during the first two months of this year, the strong operating plan for 2024, and then the amazing VSE team that makes it all happen.

我對我們 2023 年的業績、我們在今年前兩個月取得的所有成就、強大的 2024 年營運計劃以及使這一切成為現實的令人驚嘆的 VSE 團隊感到非常自豪。

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) Jeff Van Sinderen, B. Riley.

（操作員說明）Jeff Van Sinderen，B. Riley。

Hi. Good morning, everyone. Just wondering if you could speak a little bit more about the turbine acquisition, any more color you can share on the organic growth rates on what drives that with the margin profiles like EBITDA and then opportunities for synergies and then what the integration process you think will look like there?

你好。大家，早安。只是想知道您是否可以多談談渦輪機收購，您可以分享更多有關有機增長率的信息，以及如何通過EBITDA 等利潤率來推動有機增長率，然後是協同效應的機會，然後是您認為的整合過程將如何看起來像那裡？

Sure. I'll talk strategically, and then I'll let Steve talk about the financials. What we love about the deal and about the business is that we don't plan to integrate the facilities. They have two centers of excellence in California and in Florida -- sorry, in Connecticut and Florida, and they're both very, very strong facilities that we plan to keep and operate as is.

當然。我將從策略角度進行討論，然後讓史蒂夫討論財務狀況。我們對這筆交易和業務的喜愛之處在於我們不打算整合設施。他們在加利福尼亞州和佛羅裡達州有兩個卓越中心 - 抱歉，在康涅狄格州和佛羅裡達州，它們都是非常非常強大的設施，我們計劃按原樣保留和運營。

Where we see the greatest opportunity for synergy is with the OEM partners. This is similar to VSE, a very OEM-aligned business. Think of all the major engine OEMs and accessory OEMs, and that's who they're partnering with and supporting. We also see opportunity to expand into more airline direct customers versus supporting the OEMs. So that's really -- the first year is going to be more about sales synergies than, I'd say, system and process synergies.

我們認為最大的協同機會是與 OEM 合作夥伴。這與 VSE 類似，這是一個非常與 OEM 相關的業務。想想所有主要的引擎原始設備製造商和配件原始設備製造商，這就是他們的合作夥伴和支援對象。我們也看到了擴展到更多航空公司直接客戶而不是支援原始設備製造商的機會。所以，第一年將更專注於銷售協同效應，而不是系統和流程協同效應。

Steve, do you want to speak little bit more to the financials and the margin rate?

史蒂夫，你想多談談財務狀況和保證金率嗎？

Yes, provided some guidance, Jeff, it's -- we expect this year to be about $85 million in revenue, $12 million in EBITDA. Obviously, not all of that will be VSE who will acquire the business later on in the second quarter. That comes out to a sort of a mid-teens margin rate.

是的，傑夫，我們提供了一些指導，我們預計今年的收入約為 8500 萬美元，EBITDA 為 1200 萬美元。顯然，並非所有這些都將是 VSE，後者將在第二季度稍後收購該業務。其利潤率達到了十幾歲左右。

Going to the question around organic growth prospects within the business, I would just highlight, this business is very, very focused on commercial engines. And if you look at sort of the industry-wide trends, I think commercial engines is where you'll continue to see a lot of organic growth naturally because of both the legacy fleets that are operating towards the end of their life that require more maintenance as well as the new fleets that are coming into the market that require a lot of entry into service issues. And I think we see this business as having strong organic growth prospects.

關於業務內部有機成長前景的問題，我想強調的是，這項業務非常非常專注於商業引擎。如果你看看整個行業的趨勢，我認為商用引擎將繼續自然地看到大量有機增長，因為傳統機隊的使用壽命已接近尾聲，需要更多維護以及即將進入市場的新機隊需要大量的進入服務問題。我認為我們認為這項業務具有強勁的有機成長前景。

Okay, terrific. And then if we could turn to Desser for a moment, maybe if you could just touch on what's left to do on integration there? And then more color on what you see as the drivers of growth for Desser and the also the APAC expansion?

好吧，太棒了。然後，如果我們可以暫時轉向 Desser，也許您可以談談整合方面還需要做什麼？然後更闡述您認為 Desser 成長驅動力以及亞太地區擴張的因素是什麼？

Sure. With regards to -- so the Desser business was kind of a group of businesses that wasn't fully integrated when we acquired it. So we're integrating kind of each business unit separately. We are well underway. Organizational integrations already are relatively complete. System integration prep work is done. We have a new e-commerce site that will be up and running for our VSE Aviation business sometime in the second quarter. After that site is up and running, then we'll start migrating one business unit at a time in Desser from a system perspective.

當然。關於－Desser 業務是一組在我們收購時尚未完全整合的業務。因此，我們正在分別整合每個業務部門的類型。我們進展順利。組織整合已經比較完整。系統整合準備工作完成。我們有一個新的電子商務網站，將在第二季的某個時候為我們的 VSE Aviation 業務啟動並運行。該網站啟動並運行後，我們將從系統角度開始在 Desser 中一次遷移一個業務單元。

As you know, our philosophy is to fully integrate assets and realize synergies and also be able to offer a one go-to-market strategy to the market. Where we see is -- the biggest opportunity is probably with the new European distribution center. So I'd say that towards the back end of the year, we'll start to put tires and other products that, right now, are only in the UK distribution center into the European distribution center, and that will enable us to provide a more seamless transaction path for our European customers.

如您所知，我們的理念是充分整合資產並實現協同效應，並能夠向市場提供單一的進入市場策略。我們看到的是──最大的機會可能是新的歐洲配送中心。所以我想說，到今年年底，我們將開始將目前僅在英國配送中心的輪胎和其他產品放入歐洲配送中心，這將使我們能夠提供為我們的歐洲客戶提供更無縫的交易路徑。

Okay, great. Thanks for taking my questions and let me say congratulations on strong metrics and the TCI acquisition. We'll take the rest offline.

好的，太好了。感謝您回答我的問題，讓我對強大的指標和 TCI 收購表示祝賀。我們將把剩下的部分離線。

Thank you.

謝謝。

Thanks, Jeff.

謝謝，傑夫。

Josh Sullivan, The Benchmark company.

喬許·沙利文，Benchmark 公司。

Hey, good morning.

嗨，早安。

Good morning.

早安.

Just digging into Turbine a little bit. Is there or are there dominant products or customers that are more than, say, 10% individually?

只是稍微深入研究一下 Turbine。是否存在主導的產品或客戶數量超過 10%？

It depends on how you define customers. So when you look at the OEMs that they're supporting work for, the answer is yes. When you look at engine types and end user customers, it becomes a nicer, more fragmented operation. Josh, there is a bunch of things that are attractive to us. But part of that is us building balance and diversification in our own VSE aviation business.

這取決於你如何定義客戶。因此，當您查看他們所支援的原始設備製造商時，答案是肯定的。當您查看引擎類型和最終用戶客戶時，它會變得更好、更分散的操作。喬希，有很多事情對我們有吸引力。但其中一部分是我們在自己的 VSE 航空業務中建立平衡和多元化。

As we've grown over the last three to four years, our distribution business and our business in general aviation business have really accelerated that growth. This provides much more commercial content. And obviously, it's a 100% MRO business. So if you look at the total balance for VSE Aviation, it's another significant strategic advantage that this business brings to us.

隨著我們過去三、四年的發展，我們的分銷業務和通用航空業務確實加速了這種成長。這提供了更多的商業內容。顯然，這是一個 100% MRO 業務。因此，如果您查看 VSE Aviation 的總餘額，您會發現這是該業務為我們帶來的另一個重要策略優勢。

Got it, and then maybe one on Desser. What have you seen in the retread market just as airlines gear up for summer travel? Any noticeable changes in seasonal trends here geographically?

明白了，也許還有 Desser 上的一個。在航空公司為夏季旅行做準備之際，您在翻新市場上看到了什麼？這裡的季節性趨勢在地理上有什麼明顯的變化嗎？

Not really. We're not seeing any noticeable trends. Most of the US airlines are direct with manufacturers. So we have a lot of more regional airlines and a lot of European airlines that we serve direct. And I wouldn't say we're seeing any major on trend shift in 2024 compared to 2023.

並不真地。我們沒有看到任何明顯的趨勢。大多數美國航空公司都直接與製造商聯繫。因此，我們有很多支線航空公司和很多歐洲航空公司提供直接服務。我不會說與 2023 年相比，2024 年我們不會看到任何重大的趨勢轉變。

Got it. And then if I could just sneak in one last one on fleet, what does the utilization of the Memphis facility look like today? And maybe, what does it look like with the '24 guidance?

知道了。然後，如果我可以偷偷地加入艦隊中的最後一架，孟菲斯設施今天的利用率會是什麼樣子？也許，'24 指導方針是什麼樣的？

It's a great question that I don't have a precise metric on. I would tell you that with 2024 and the continued scaling and well above-market growth, we won't even be at half capacity.

這是一個很好的問題，但我沒有一個精確的衡量標準。我想告訴您，隨著 2024 年的持續擴展和遠高於市場的成長，我們的產能甚至不會減半。

Yes, I think that's a fair synopsis. I mean, we contributed an incremental -- almost $50 million in the year. I think we referenced last year that that was kind of like 20% to 25% utilization. And although we forecasted commercial growth between 40% and 50% this year, it still leaves us with a lot of excess capacity as we look out to '25 and beyond.

是的，我認為這是一個公平的概要。我的意思是，我們這一年貢獻了近 5000 萬美元的增量資金。我想我們去年提到過，利用率約 20% 到 25%。儘管我們預測今年的商業成長將在 40% 到 50% 之間，但展望 25 年及以後，我們仍然面臨大量產能過剩。

Great. Thank you for the time.

偉大的。謝謝你的時間。

Thank you.

謝謝。

Thanks, Josh.

謝謝，喬許。

Louie DiPalma, William Blair.

路易·迪帕爾瑪，威廉·布萊爾。

John, Steve, and Michael, good morning and happy Thursday. And congrats on closing the federal and defense sale. I know that's been a long time coming.

約翰、史蒂夫和邁克爾，早上好，週四快樂。並祝賀完成聯邦和國防銷售。我知道這已經是很長一段時間了。

Thank you, and I agree.

謝謝你，我也同意。

For John, geographic expansion, it is obviously a big driver for you. You referenced how you had solid contributions from your Asia Pacific expansion. I think Pratt & Whitney Canada and was one of your anchor customers in that region. Are you still in the early innings in Asia? And are your other OEM partners looking to also to give you some distribution business over there?

對約翰來說，地域擴張顯然是一個很大的驅動力。您提到了您如何在亞太地區的擴張中做出了堅實的貢獻。我認為加拿大普惠公司是您在該地區的主要客戶之一。你在亞洲還處於早期階段嗎？您的其他 OEM 合作夥伴是否也希望為您提供一些分銷業務？

The answer is yes to both. We're in our early innings outside the US in general. During COVID, when I arrived at the business, we did a complete restructuring. We essentially shut down most of our international operations, and they weren't in ideal locations or set up with the right team. So it's much more of a start-up mentality in terms of Asia and Europe today.

兩者的答案都是肯定的。整體而言，我們在美國以外的地區仍處於早期階段。在新冠疫情期間，當我來到公司時，我們進行了徹底的重組。我們基本上關閉了大部分國際業務，而且它們的位置並不理想，也沒有配備合適的團隊。因此，就當今的亞洲和歐洲而言，這更像是一種新創心態。

We do have a few pilot customers. We have other products as well, some business in general aviation. Honeywell content, that's more Asia specific as well. We have tires in distribution that we've set up in Australia and have continued growth opportunities there. So we have some near-term opportunities, and yes, the pipeline of longer-term international focus as well.

我們確實有一些試點客戶。我們還有其他產品，一些通用航空業務。霍尼韋爾的內容也更具亞洲特色。我們在澳洲設立了輪胎分銷中心，並在那裡擁有持續成長的機會。因此，我們有一些近期機會，是的，還有長期國際關注的管道。

Great, and you also -- you mentioned how for the Turbine Controls acquisition how it's involved in several strategic next-gen aircraft platforms. What are some of those platforms?

太棒了，您也提到了渦輪控制公司的收購如何涉及多個策略性下一代飛機平台。其中有哪些平台？

Yes, I mean, it's on the MAX and it's on the NEO, meaning they're supporting the engine types that support both of those narrow bodies. And then I'd say across the board, they've got capabilities to support almost every engine product type in the commercial space.

是的，我的意思是，它在 MAX 上，也在 NEO 上，這意味著它們支援支援這兩種窄體的引擎類型。然後我想說，他們有能力支持商業領域幾乎所有引擎產品類型。

So there are just a few kind of major OEM partners out there. And I'd say their capabilities are able to support all of them, both wide body and narrow body. They do a little bit of military work, but it seems to be much more commercially oriented.

因此，主要的 OEM 合作夥伴只有幾種。我想說他們的能力能夠支持所有這些，無論是寬體還是窄體。他們做了一些軍事工作，但似乎更以商業為導向。

Thanks, Steve. And another question, from a high level, how do you see Boeing's issues impacting the aftermarket industry? And related to that, one of the major aftermarket providers commented that there's rampant price inflation in the industry right now due to heavy demand. Are you also seeing that?

謝謝，史蒂夫。還有一個問題，從高層來看，您如何看待波音的問題對售後市場產業的影響？與此相關的是，一家主要的售後市場提供者評論說，由於需求旺盛，目前該行業的價格大幅上漲。你也看到了嗎？

Post COVID, we saw a tremendous amount of price inflation. We still see aftermarket pricing as a lever that many OEMs continue to utilize. I think there's an element of stabilization that we've seen entering 2024 compared to 2023.

新冠疫情爆發後，我們看到了巨大的物價上漲。我們仍然將售後定價視為許多原始設備製造商繼續利用的槓桿。我認為，與 2023 年相比，進入 2024 年我們已經看到了穩定的因素。

And I'd say with regard to Boeing, I mean, we all want our OEM partners to be successful. It is in all of our best interests. For us, we're serving the aftermarket. The same supply chain that does work on newbuild does work on aftermarket.

我想說的是，關於波音，我們都希望我們的 OEM 合作夥伴能成功。這符合我們所有人的最佳利益。對我們來說，我們正在為售後市場提供服務。適用於新造船的供應鏈也適用於售後市場。

So for us, we're looking more at two trends. I'd say number one is our aircraft that plan to be retired, not going to be retired, and are there any areas of opportunity for us to capitalize on that? And then number two is how is the supply chain impacted? And what impact does that have for us and how do we find opportunity in those areas? So I'd say that's where we focus.

所以對我們來說，我們更專注於兩個趨勢。我想說第一是我們計劃退役的飛機，而不是打算退役的飛機，我們是否有任何機會可以利用這一點？第二個問題是供應鏈如何受到影響？這對我們有什麼影響？所以我想說這就是我們關注的焦點。

Great and one final one that you may not be able to comment on, but what has been the preliminary buyer interest for the fleet business?

很好，也是最後一項，您可能無法發表評論，但買家對車隊業務的初步興趣是什麼？

Our words that we started an initial process is exactly that. We kicked off 2024, and in seven weeks, we sold the two FDS assets and acquired the TCI business or announced the acquisition of that business. That was all done in seven weeks. We have not started the strategic review process. We've announced it. We've retained advisor, and we'll kick off that process and go through a true strategic review over the coming months.

我們所說的我們啟動了一個初始流程正是如此。我們從2024年開始，在七週內，我們出售了兩項FDS資產並收購了TCI業務或宣布收購該業務。這一切都在七週內完成。我們尚未開始策略審查流程。我們已經宣布了。我們已經聘請了顧問，我們將啟動這項流程，並在未來幾個月內進行真正的策略審查。

Awesome. Sounds good, thanks. Thanks, everyone.

驚人的。聽起來不錯，謝謝。感謝大家。

Thanks, Louie.

謝謝，路易。

(Operator Instructions) Sam Struhsaker, Truist Securities.

（操作員指示）Sam Struhsaker，Truist 證券公司。

Hi, good morning, guys. On for Mike Ciarmoli. I was curious, can you guys give me a little bit of an update on the Southwest teardown program now that's going?

嗨，早上好，夥計們。麥克·恰爾莫利上場。我很好奇，你們能給我一些正在進行的西南拆解計劃的最新情況嗎？

Yes, I think the program's going really well. So we've been in a few years of that product or that service that we've partnered out with Southwest. Really, that's about bringing a service to that specific customer. It also provides an opportunity for our repair shops to continue to support the 737s that are coming out of service with some of the USM that comes out of those and turn into rotables.

是的，我認為這個計劃進展得非常順利。因此，我們與西南航空合作提供該產品或服務已經有幾年了。實際上，這就是為特定客戶提供服務。它還為我們的維修店提供了一個機會，可以繼續為即將退役的 737 飛機提供支持，並將其中的一些 USM 轉變成可更換的飛機。

I'd say the program has launched really well, and this year was a peak year. I mean, we did more work this year than we did in the year before. And the fourth quarter was another record quarter for that program. But I'd say it's a great contributor to our business.

我想說這個計劃啟動得非常好，今年是個高峰年。我的意思是，我們今年做了比前一年更多的工作。第四季是該計劃另一個創紀錄的季度。但我想說它對我們的業務做出了巨大貢獻。

And more than anything, I think it shows the flexibility that we have with some of our key customers to find creative ways to partner with them on a solution that fits for what they need. And that's what we did for Southwest, and we think it's an important service that we offer to them.

最重要的是，我認為這顯示了我們與一些主要客戶的靈活性，可以找到創意的方式與他們合作開發適合他們需求的解決方案。這就是我們為西南航空所做的，我們認為這是我們為他們提供的一項重要服務。

Great, and maybe -- is there any additional detail you guys could give on your delevering trajectory once you closed that TCI in 2Q?

太好了，也許——你們在第二季度關閉 TCI 後，是否可以提供有關去槓桿化軌蹟的任何其他詳細資訊？

Absolutely. So you heard us reference we expect to go just over four times on a net-debt-to-EBITDA basis post the acquisition. Really, what we look for in the second half of this year is -- I'll go through a couple of different drivers. First is contributions from growth in EBITDA. So obviously, we've got some top-line growth expected as well as some -- therefore, profitability growth is expected as well.

絕對地。因此，您聽到我們提到，收購後，我們預計淨債務與 EBITDA 的比率將達到四倍以上。事實上，我們在今年下半年尋找的是——我將介紹幾個不同的驅動程式。首先是 EBITDA 成長的貢獻。顯然，我們預計會有一些營收成長，因此，預期獲利能力也會成長。

The second thing that we expect to do is deliver some strong second-half free cash flow. I think we've got a pretty good, demonstrated track record of doing that over the last couple of years, and we project that out into the back half of this year. So that puts us in a strong position to be in a good point from a net leverage perspective.

我們期望做的第二件事是下半年提供強勁的自由現金流。我認為我們在過去幾年中在這方面取得了相當不錯的業績記錄，我們預計將在今年下半年實現這一目標。因此，從淨槓桿角度來看，這使我們處於有利地位。

The third thing that I would kind of offer is, obviously, as John referenced just a couple of minutes ago, we are going to go through a strategic evaluation associated with the fleet segment. And I think there is an element around shoring up the balance sheet associated with that. So we'll provide more updates towards the back half of the year once we complete that strategic review.

我要提供的第三件事顯然是，正如約翰幾分鐘前提到的那樣，我們將進行與機隊部門相關的策略評估。我認為有一個因素可以支撐與之相關的資產負債表。因此，一旦完成策略審查，我們將在今年下半年提供更多更新。

Great. Thanks, guys.

偉大的。多謝你們。

Thank you.

謝謝。

We have a follow-up question from Louis DiPalma. Please go ahead.

我們有路易斯·迪帕爾瑪提出的後續問題。請繼續。

Thanks for taking the follow up. I was wondering, you mentioned in the press release, I believe, a potential $23 million for corporate restructuring. Do you have any sense on what could be the savings in 2025 from that restructuring?

感謝您的跟進。我想知道您在新聞稿中提到的，我相信，可能有 2300 萬美元用於公司重組。您是否知道 2025 年重組可以節省多少成本？

Yes, Louie, we're just kind of kicking off this progress for this process at this point. But I would say this is really about eliminating, I'll call it some excess corporate costs following the FDS sale, and it's primarily related to facilities expenses.

是的，Louie，我們現在只是開始這個過程的進展。但我想說，這實際上是為了消除 FDS 出售後的一些超額企業成本，它主要與設施費用有關。

So we don't have anything necessarily we would share at this point, but I'd say it's more so about eliminating some of that overhead expense that remains behind following the FDS sale. And they've got a range there. But obviously, it comes down to multiple different factors in terms of discussions with some of the contractors and vendors. So we'll provide more updates on specifics around it once we complete the process.

因此，我們目前沒有必要分享任何內容，但我想說，更重要的是消除 FDS 出售後遺留下來的一些管理費用。他們在那裡有一個範圍。但顯然，這取決於與一些承包商和供應商的討論中的多種不同因素。因此，一旦完成該過程，我們將提供更多有關具體細節的更新。

Great. That's it for me. Thanks, everyone.

偉大的。對我來說就是這樣。感謝大家。

Thanks, Louie.

謝謝，路易。

This concludes our question-and-answer session. I would like to turn the conference back over to John Cuomo, President and CEO, for any closing remarks.

我們的問答環節到此結束。我想將會議轉交給總裁兼執行長約翰·科莫發表閉幕詞。

Thank you. Thanks, everybody, for joining our call today. Very, very thankful and appreciative of the VSE team, the strong 2023 results that we were able to produce, and the outstanding start, both strategically and operationally to 2024. Look forward to speaking to you all in May after our first-quarter earnings call. Have a great day. Thank you.

謝謝。感謝大家今天加入我們的電話會議。非常非常感謝和讚賞 VSE 團隊，我們能夠在 2023 年取得強勁的業績，以及 2024 年在策略和營運上的出色開局。期待在五月第一季財報電話會議後與大家交談。祝你有美好的一天。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。