VSE Corp (VSEC) 2024 Q3 法說會逐字稿

Good day and welcome to the VSC Corporation third quarter, 2024 results conference call.

美好的一天，歡迎參加 VSC 公司 2024 年第三季業績電話會議。

All participants will be in listen-only mode.

所有參與者將處於僅聽模式。

Should you need assistance?

您需要協助嗎？

Please signal a conference specialist by pressing the star key followed by zero.

請按星號鍵，然後按零，向會議專家發出訊號。

After today's remarks, there will be an opportunity to ask questions to ask a question.

今天的發言結束後，將有機會提問。

You, you may press star then one on your touchtone phone to withdraw your question.

您可以按按鍵式電話上的星號然後再按一個來撤回您的問題。

Please press star.

請按星號。

Then two.

然後是兩個。

Please note this event is being recorded.

請注意此事件正在被記錄。

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

現在我想將會議交給投資者關係和財務副總裁 Michael Perlman。

Please go ahead.

請繼續。

Thank you.

謝謝。

Welcome to VSE Corporation's third quarter, 2024 results conference call.

歡迎參加 VSE Corporation 2024 年第三季業績電話會議。

We will begin with remarks from John Cuomo, President and CEO followed by a financial update from Adam Cohn, our Chief Financial Officer presentation.

我們將首先由總裁兼首席執行官約翰·科莫 (John Cuomo) 發表講話，然後由我們的首席財務官亞當·科恩 (Adam Cohn) 介紹財務最新情況。

We are sharing today is on our website and we encourage you to follow along accordingly.

我們今天在我們的網站上分享，我們鼓勵您相應地關注。

Today's discussion contains forward-looking statements about future business and financial expectations.

今天的討論包含有關未來業務和財務預期的前瞻性陳述。

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.

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描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，除非法律要求，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 appropriate GAAP Financial Reconciliations are incorporated into our presentation and posted on our website.

我們在簡報中使用非 GAAP 財務指標（如果適用），適當的 GAAP 財務調整表將納入我們的簡報中並發佈在我們的網站上。

All percentages in today's discussion.

今天討論的所有百分比。

Refer to year over year progress except where noted at the conclusion of our prepared remarks.

除非我們在準備好的評論的結論中註明，否則請參閱逐年進展。

We will open the line for questions with that.

我們將為此開通提問專線。

I'd like to turn the call over to John.

我想把電話轉給約翰。

Good morning.

早安.

Thank you, Michael, and thank you for being a part of today's third quarter conference call this morning.

謝謝邁克爾，也感謝您參加今天早上的第三季電話會議。

I would like to first officially welcome Adam, our new Chief Financial Officer to his first VSE earnings call.

我首先正式歡迎我們新任財務長 Adam 參加他的第一次 VSE 財報電話會議。

Adam joined BSE in early September and has already made a significant impact providing valuable support for the recently completed equity raise and the negotiation and signing of the KSR acquisition.

Adam 於 9 月初加入 BSE，已經產生了重大影響，為最近完成的股權融資以及 KSR 收購的談判和簽署提供了寶貴的支持。

Adam, it's great to have you as my partner and welcome to the team.

Adam，很高興你成為我的合作夥伴，歡迎加入我們的團隊。

I'd like to begin my prepared remarks by discussing the current market environment for our aviation segment followed by an update on our progress to date on our 2024 strategic priorities.

我想先討論我們航空部門目前的市場環境，然後介紹我們 2024 年策略重點的最新進展。

The aviation segment now supports more than 70% of total company revenues.

目前，航空業務占公司總收入的 70% 以上。

Those revenues are derived from both the commercial and business and general aviation aftermarkets.

這些收入來自商業和通用航空售後市場。

In the third quarter of 2024 global demand in the commercial aerospace aftermarket remained at near record levels driven by high passenger traffic.

2024 年第三季度，在高客流量的推動下，全球商業航空航太售後市場的需求仍維持在接近歷史記錄的水平。

The market is navigating declining OEM production rates and ongoing supply chain disruptions which continue to hinder the availability of new aircraft.

市場正面臨原始設備製造商生產率下降和供應鏈持續中斷的局面，這繼續阻礙新飛機的供應。

The shortage of new aircraft is a significant obstacle for airlines looking to increase capacity and retire less efficient older aircraft.

對於尋求增加運力並淘汰效率較低的舊飛機的航空公司來說，新飛機的短缺是一個重大障礙。

As a result, airlines are extending the operational life of existing fleets which continue to fuel demand for aftermarket parts and maintenance services.

因此，航空公司正在延長現有機隊的使用壽命，這將繼續刺激對售後零件和維修服務的需求。

The business and general aviation aftermarket is also operating near historic highs and has entered a period of stability compared to previous cycles.

公務和通用航空售後市場也運作在歷史高點附近，與先前的周期相比已進入穩定期。

Private air travel sentiment remains robust.

私人航空旅行情緒依然強勁。

In summary, we expect strong demand in the commercial aftermarket with near double digit revenue growth to continue into 2025 supported by high passenger volumes of OEM production challenges and an aging global fleet.

總而言之，我們預計，在 OEM 生產挑戰帶來的高客流量和全球機隊老化的支持下，商業售後市場的強勁需求將持續到 2025 年，營收成長接近兩位數。

The outlook for business and general aviation also remains positive with more stable low to mid-single digit growth into 2025.

商務和通用航空的前景也依然樂觀，到 2025 年將實現更穩定的低至中個位數成長。

Let's now move to slide 3 where I'll provide an update on our strategic priorities.

現在讓我們轉到投影片 3，我將提供有關我們策略重點的最新資訊。

Let's begin with our recently announced acquisition of KSR Aerospace.

讓我們從我們最近宣布的對 KSR Aerospace 的收購開始。

Last month, we announced that we entered into a definitive agreement to acquire Telstra Aerospace, a leading full service aftermarket solutions provider of value added distribution and technical services for the commercial aftermarket.

上個月，我們宣布達成收購 Telstra Aerospace 的最終協議，Telstra Aerospace 是一家領先的全方位服務售後解決方案提供商，為商業售後市場提供增值分銷和技術服務。

KSR is a strong strategic fit and aligned with VS ES core strategic focus areas.

KSR 具有很強的策略契合度，並且與 VS ES 核心策略重點領域保持一致。

First KSR increases VSE aviation customer base and market exposure to the commercial aerospace aftermarket with the focus on engines.

First KSR 增加了 VSE 航空客戶群和商業航空航太售後市場的市場份額，重點是引擎。

Second, KSR expands our distribution products and aftermarket service offerings.

其次，KSR 擴大了我們的分銷產品和售後服務範圍。

Third, Kellstrom aligns with BSc's core OEM centric strategy with over 95% of Kellstrom distribution revenue being generated from exclusive long-term relationships with Marquee Aerospace OEMs.

第三，Kellstrom 與 BSc 以 OEM 為中心的核心策略保持一致，超過 95% 的 Kellstrom 分銷收入來自與 Marquee Aerospace OEM 的獨家長期合作關係。

Fourth, calcium expands our international reach calm operates across 75 countries and approximately half of revenue is generated outside of North America.

第四，鈣擴大了我們的國際影響力，業務遍及 75 個國家，大約一半的收入來自北美以外地區。

And finally, the acquisition presents significant synergies with a planned integration.

最後，此次收購與計畫中的整合產生了顯著的綜效。

KSR generated approximately $175 million of revenue and approximately $20 million of adjusted EBITDA for the trailing 12-month period ended September 2024.

截至 2024 年 9 月的過去 12 個月內，KSR 產生了約 1.75 億美元的收入和約 2,000 萬美元的調整後 EBITDA。

We expect to generate run rate, synergies of approximately $4 million within 18 months of close and are confident that we will be able to deliver greater than 15% EBITDA margins for the business as we integrate and optimize the businesses together.

我們預計在交易完成後 18 個月內產生約 400 萬美元的運行率和協同效應，並相信，隨著我們整合和優化業務，我們將能夠為業務提供超過 15% 的 EBITDA 利潤率。

The total consideration for the acquisition is $200 million comprised of $185 million in cash and approximately $15 million of common shares of the company subject to working capital adjustments.

此次收購的總代價為 2 億美元，其中包括 1.85 億美元現金和約 1,500 萬美元的公司普通股（需調整營運資本）。

The acquisition is expected to close in December.

此次收購預計將於 12 月完成。

I would now like to provide an update on our 2024 strategic priorities for our two segments.

我現在想介紹一下我們兩個部門 2024 年策略重點的最新情況。

Beginning with aviation, our European distribution expansion initially supported by the Pratt and Whitney, Canada, Europe, Middle East and Africa aftermarket product support program is ahead of schedule and remains on pace to reach a full year run rate.

從航空業開始，我們的歐洲分銷擴張最初由普惠公司、加拿大、歐洲、中東和非洲售後市場產品支援計劃支持，已提前完成，並繼續保持全年運行速度。

By the end of the fourth quarter, we have begun expanding our product line offerings in Europe with plans to support additional product lines in the near future.

到第四季末，我們已經開始擴大在歐洲的產品線，並計劃在不久的將來支援更多的產品線。

Next, the financial performance and implementation of our OE license fuel control manufacturing program continues to outpace expectations.

接下來，我們的原廠許可燃料控制製造計畫的財務表現和實施情況持續超出預期。

The implementation of the manufacturing capabilities supporting the launch of this new program are expected to continue into 2025.

支持這項新計畫啟動的製造能力預計將持續到 2025 年。

The integration of the debtor acquisition us distribution business which included integrating systems, processes, organization and branding was completed in the third quarter.

債務人收購美國分銷業務的整合已於第三季完成，其中包括整合系統、流程、組織和品牌。

Supporting this integration, we launched a new e-commerce platform shop.vseaviation.com where all legacy (inaudible) products including tires, retreads, tubes and batteries are now available for purchase.

為了支持這種整合，我們推出了一個新的電子商務平台 shop.vseaviation.com，所有傳統（聽不清楚）產品，包括輪胎、翻新輪胎、內胎和電池，現在都可以購買。

Finally, following the acquisition of turbine controls in April 2024 we remain focused on adding incremental capacity and increasing our scope with existing OEM partners.

最後，在 2024 年 4 月收購渦輪機控制系統後，我們仍專注於增加增量產能並擴大與現有 OEM 合作夥伴的範圍。

Before integrating the business, the performance for this business remains well ahead of our expectations.

在整合業務之前，該業務的業績仍遠遠超出我們的預期。

Moving now to our fleet segment during the third quarter, the United States Postal Service completed the implementation of its new fleet management information system with ALL307 vehicle maintenance facilities now live following this system implementation and beginning this quarter, we expect to see a gradual increase in repair activity and subsequently an increase in the usage of our parts.

現在轉向我們的車隊部分，在第三季度，美國郵政局完成了新的車隊管理資訊系統的實施，ALL307 車輛維護設施在該系統實施後現已投入運行，從本季度開始，我們預計將逐步增加維修活動以及隨後我們零件使用量的增加。

And we remain committed to supporting the USPS through this period of transition within our commercial sales channel.

我們仍然致力於在我們的商業銷售管道內支援 USPS 度過這段過渡期。

We are focused on scaling our e-commerce fulfilment facility, diversifying our customer and supplier base and adding new products and brands to our portfolio.

我們專注於擴大我們的電子商務履行設施，使我們的客戶和供應商基礎多樣化，並在我們的產品組合中添加新產品和品牌。

Please segment strategic review remains in process and we will provide an update in the near future as the USPS revenue continues to stabilize corporate level.

請細分策略審查仍在進行中，隨著 USPS 收入繼續穩定公司水平，我們將在不久的將來提供更新。

We completed a very successful following offering of approximately $2 million shares at $87 per share in October 2024.

我們在 2024 年 10 月非常成功地以每股 87 美元的價格發行了約 200 萬美元的股票。

The net proceeds from the offering will be used to fund a portion of the cast consideration for the acquisition of Calcium Aerospace.

此次發行的淨收益將用於支付收購 Calcium Aerospace 的部分投資對價。

The remaining balance will be funded through the revolver.

剩餘餘額將透過左輪手槍提供資金。

Now let's move to slide 4 where I will provide an update on our business segment.

現在讓我們轉到幻燈片 4，我將在其中提供有關我們業務部門的最新資訊。

Q3 performance in the third quarter, we delivered both record revenue and record profitability for our aviation segment driven by a 34% increase in aviation sales in the quarter.

第三季度的表現 在第三季度，我們的航空部門實現了創紀錄的收入和創紀錄的盈利能力，這得益於該季度航空銷售額增長 34%。

Our aviation segment balanced revenue growth was driven by strong execution on new and existing distribution programs and expanded portfolio of MRO capabilities and contributions from the TC acquisition.

我們的航空部門收入均衡成長是由新的和現有的分銷計劃的強有力執行、MRO 能力的擴大以及 TC 收購的貢獻所推動的。

The aviation segment also reported record profitability driven by balanced contributions from new distribution programs, the optimization of existing distribution programs MRO market share gains and our new OEM license manufacturing programs and contributions from the TC acquisition during the third quarter, fleet segment revenue declined 11% USPS revenue declined as forecasted due to the final phase of implementation of a new fleet management information system.

航空部門還報告了創紀錄的盈利能力，這得益於新分銷計劃的平衡貢獻、現有分銷計劃的優化、MRO 市場份額的增長以及我們新的OEM 許可製造計劃以及第三季度TC 收購的貢獻，機隊部門收入下降了11%由於新車隊管理資訊系統的實施已進入最後階段，美國郵政收入按預期下降。

The conversion of their facilities to this new ERP platform resulted in a temporary slowdown in maintenance related activities and parts usage with recovery anticipated to begin this quarter.

他們的設施轉換為新的 ERP 平台導致維護相關活動和零件使用暫時放緩，預計將於本季開始恢復。

The USPS revenue decline was offset by 20% organic growth from the fleet's e-commerce fulfilment business and expanded product offerings supporting new and existing customers within our commercial fleet sales channel.

USPS 收入的下降被車隊電子商務履行業務 20% 的有機成長以及為我們的商業車隊銷售管道內的新老客戶提供支援的擴大產品供應所抵消。

With that, I will now turn the call over to Adam to discuss the details of our financial performance.

現在，我將把電話轉給 Adam，討論我們財務表現的細節。

Thank you, John.

謝謝你，約翰。

Let's turn to slides 5 and 6 of the conference call materials where I will provide an overview of our third quarter financial performance VSE generated $274 million of revenue in the quarter.

讓我們來看看電話會議資料的幻燈片 5 和 6，我將概述我們第三季的財務業績，VSE 在本季度創造了 2.74 億美元的收入。

An increase of 18% led by a 34% increase in aviation revenue, partially offset by an 11% decline in fleet revenue adjusted EBITDA of $33 million increased 3% compared to the third quarter of 2023.

航空營收成長 34%，帶動成長 18%，部分被機隊營收下降 11% 所抵消，調整後 EBITDA 為 3,300 萬美元，較 2023 年第三季成長 3%。

Aviation drove this growth up $7 million compared to the same period in the prior year, partially offset by a $5 million decline in adjusted EBITDA for fleet adjusted net income was $13 million and adjusted diluted earnings per share was $0.71 per share.

航空業推動這一增長與上年同期相比增加了700 萬美元，部分被調整後EBITDA 下降500 萬美元所抵消，機隊調整後淨利潤為1300 萬美元，調整後攤薄每股收益為0.71 美元。

Now turning to slides set where we will review our aviation segment's record third quarter results in more detail.

現在轉向幻燈片，我們將更詳細地回顧航空部門創紀錄的第三季業績。

Aviation revenue increased 34% to a record $204 million as compared to the third quarter of 2023 both distribution and MRO businesses were strong contributors up 12% and 86% respectively.

與 2023 年第三季相比，航空收入成長 34%，達到創紀錄的 2.04 億美元，分銷和 MRO 業務均是強勁貢獻者，分別成長 12% 和 86%。

The 12% increase in distribution revenue was driven by strong execution of existing OEM programs and the ramp of new OEM programs.

分銷收入成長 12% 是由於現有 OEM 計劃的強勁執行和新 OEM 計劃的增加。

This growth rate remains above market on a blended basis.

綜合來看，這一成長率仍高於市場水準。

As the business and general aviation distribution market is growing at mid-single digits and the commercial aerospace distribution market is growing at low double digit growth rate.

由於商務和通用航空分銷市場正以中個位數成長，而商業航空航太分銷市場正以較低的兩位數成長率成長。

Our MRO revenue grew by 86% in the quarter driven by the expansion of new repair capabilities.

在新維修能力擴張的推動下，我們的 MRO 營收在本季成長了 86%。

Market share gains improved throughput across our MRO facilities and contributions from the TC acquisition, excluding contributions from the TCI acquisition MRO revenue increased organically approximately 17% in the quarter.

市場佔有率的成長得益於我們 MRO 設施的吞吐量以及 TC 收購帶來的貢獻（不包括 TCI 收購帶來的貢獻），本季 MRO 營收有機成長約 17%。

Aviation adjusted EBITDA increased by 29% in the quarter to a record $33 million.

該季度航空業調整後 EBITDA 成長 29%，達到創紀錄的 3,300 萬美元。

The increase in adjusted EBITDA was driven by the scaling of new distribution programs.

調整後 EBITDA 的成長是由新分配計劃的擴展所推動的。

Strong performance from existing distribution programs, an increase in MRO activity and contributions from TCI and our newly launched OEM licensed fuel control manufacturing program.

現有分銷計劃的強勁表現、MRO 活動的增加以及 TCI 和我們新推出的 OEM 許可燃油控制製造計劃的貢獻。

Aviations near record adjusted EBITDA margin of 16% was negatively impacted by lower margin TC contributions.

航空業的調整後 EBITDA 利潤率接近創紀錄的 16%，但受到利潤率 TC 貢獻較低的負面影響。

We are increasing our full year. 2024 revenue growth range from 34 to 38% to 39 to 41%.

我們正在增加全年的產量。 2024 年營收成長範圍為 34% 至 38% 至 39% 至 41%。

Revenue contributions from the KSM acquisition which is expected to close in the fourth quarter of 2024 are not included in our updated guides.

預計 2024 年第四季完成的 KSM 收購帶來的營收貢獻未包含在我們更新的指南中。

We're also maintaining our adjusted EBITDA margin guidance of 15.5 to 16.5% respectively.

我們也分別維持調整後 EBITDA 利潤率指引 15.5% 至 16.5%。

As John mentioned earlier, we are very excited about our recently announced acquisition of Kellstrom Aerospace.

正如約翰之前提到的，我們對最近宣布收購 Kellstrom Aerospace 感到非常興奮。

The acquisition is strongly aligned with BSC Aviations distribution business and highly complementary to our recent TC acquisition focused on the commercial engine aftermarket.

此次收購與 BSC Aviations 分銷業務密切相關，並且與我們最近專注於商用引擎售後市場的 TC 收購高度互補。

The combination of the two businesses is expected to yield significant sales and operating synergies better positioning VSE in the global aviation aftermarket now turning to slide 8 for our fleet segment's third quarter results in the third quarter.

兩項業務的合併預計將產生顯著的銷售和營運綜效，從而更好地定位 VSE 在全球航空售後市場的地位，目前我們機隊部門第三季業績的第 8 名。

Fleet segment revenue declined 11% to $70 million driven by lower U SPS revenue partially offset by e-commerce fulfilment and commercial fleet sales growth.

車隊部門收入下降 11%，至 7,000 萬美元，原因是美國 SPS 收入下降，但電子商務履行和商業車隊銷售成長部分抵消了這一影響。

Commercial revenue is $45 million in the third quarter.

第三季商業收入為 4500 萬美元。

An increase of 20% compared to the prior year.

與上年相比成長20%。

Commercial revenue represents 64% of total fleet segment sales compared to 47% in the prior year period.

商業收入佔車隊部門總銷售額的 64%，去年同期為 47%。

U SPS revenue which is included within our other government channel declined approximately 40% compared to the third quarter of last year, which was at the lower end of our previously provided guidance range.

包含在我們其他政府管道中的美國 SPS 收入與去年第三季相比下降了約 40%，處於我們先前提供的指導範圍的下限。

We expect to see USPS sales begin to recover in the fourth quarter resulting in 30 to 35% decline for the full year.

我們預計 USPS 銷售額將在第四季開始復甦，導致全年下降 30% 至 35%。

Moving on to fleet profitability segment adjusted EBITDA decreased 59% to $4 million driven by the decline in U SPS sales volume fleet's adjusted EBITDA margin was 5.4% for the third quarter for the full year 2024.

轉向機隊獲利能力部分，由於美國 SPS 銷售下降，2024 年全年第三季調整後 EBITDA 利潤率為 5.4%，導致機隊調整後 EBITDA 下降 59%，至 400 萬美元。

We are lowering our fleet segment revenue growth range from 0 to 5% to a decline of 5 to 10% compared to the prior year based on actual revenue to date and planned customer growth in the fourth quarter.

根據迄今為止的實際收入和第四季度的計劃客戶成長，我們將機隊部門的收入成長範圍從 0% 到 5% 降低到比上年同期下降 5% 到 10%。

We remain confident in our ability to support USPS revenue recovery and continued above market growth within our commercial business segment in the fourth quarter and continued into 2025 with respect to fleet adjusted EBITDA.

我們對支持 USPS 收入復甦的能力仍然充滿信心，並在第四季度商業業務部門繼續實現高於市場的成長，並持續到 2025 年機隊調整後 EBITDA 方面。

We are maintaining the previously provided margin range of 68%.

我們維持先前提供的 68% 的保證金範圍。

Turning to slide 9 in the third quarter, we generate $10 million of operating cash flow and $4 millions of free cash flow driven by disciplined working capital management and strong operating results at the end of the quarter, our total net debt outstanding was $442 million adjusted net leverage, which includes a trailing 12 month results from prior acquisitions was 3.3 times following our recently completed equity raise which has temporary temporarily reduced our adjusted net leverage ratio to 2.1 times and the planned completion of the Kellstrom acquisition in the fourth quarter, we anticipate our third quarter 2024 adjusted net leverage ratio to improve to approximately three times.

轉向幻燈片9，第三季度，在嚴格的營運資本管理和季度末強勁的營運業績的推動下，我們產生了1000 萬美元的營運現金流和400 萬美元的自由現金流，調整後的未償淨債務總額為4.42 億美元我們預計，在我們最近完成股權融資後，淨槓桿率（包括先前收購的過去12 個月結果）為3.3 倍，這暫時將我們調整後的淨槓桿率降低至2.1 倍，並且計劃在第四季度完成Kellstrom 收購2024 年第三季度，我們調整後的淨槓桿率提高至約三倍。

Our adjusted net leverage is expected to further improve in the fourth quarter, driven by stronger free cash flow conversion on adjusted EBITDA basis in the fourth quarter.

由於第四季度調整後 EBITDA 基礎上的自由現金流轉換強勁，預計我們的調整後淨槓桿率將在第四季度進一步改善。

As compared to the third quarter of 2024.

與 2024 年第三季相比。

With that, I will turn it back over to John.

這樣，我會將其轉回給約翰。

Thank you, Adam.

謝謝你，亞當。

I would like to conclude our prepared remarks by recapping our 2024 priorities on slide.

我想透過投影片重述我們 2024 年的優先事項來結束我們準備好的發言。

10.

10.

It's been a busy year at VSE we divested all non-core federal and defence assets acquired two market leading commercial aftermarket engine focused businesses expanded our footprint and one and implemented significant new business.

今年是 VSE 忙碌的一年，我們剝離了所有非核心聯邦和國防資產，收購了兩家市場領先的商業售後發動機重點業務，擴大了我們的業務範圍，並實施了一項重要的新業務。

Let's begin with our aviation segment.

讓我們從航空部門開始。

First.

第一的。

Our Pratt and Whitney Europe, Middle East and Africa program implementation is ahead of schedule, and we have introduced new product lines in our new Hamburg Germany Distribution Center.

我們的普惠歐洲、中東和非洲計劃實施提前，並且我們在新的漢堡德國配送中心引入了新的產品線。

We will finalize these implementations before year end as we continue to position the facility to support additional product lines in the near future.

我們將在年底前完成這些實施，因為我們將繼續將設施定位為在不久的將來支援更多的產品線。

Second, our OEM licensed fuel control manufacturing program launch continues to outpace expectations.

其次，我們的 OEM 許可燃油控制製造計劃的推出繼續超出預期。

The implementation of the manufacturing capabilities supporting this program are expected to continue into 2025 third.

支持該計劃的製造能力的實施預計將持續到 2025 年第三年。

The integration of the debtor acquisition us distribution business was completed during the third quarter.

債務人收購美國分銷業務的整合已於第三季完成。

The remaining business integrations are expected to be completed within the next year.

其餘業務整合預計明年內完成。

Supporting these integrations.

支援這些整合。

We launched a new e-commerce platform.

我們推出了一個新的電子商務平台。

We will continue to optimize this platform in the quarter ahead.

我們將在接下來的季度繼續優化該平台。

Fourth, we remain focused on adding incremental capacity and expanding turbine control partnerships with existing customers and OEM partners while working through our integration plan.

第四，在實施我們的整合計畫的同時，我們仍然專注於增加增量產能並擴大與現有客戶和 OEM 合作夥伴的渦輪機控制合作夥伴關係。

And fifth, we expect to complete the acquisition of Carlstrom Aerospace in December and look forward to begin integration activities in the first quarter of 2025.

第五，我們預計將於 12 月完成對 Carlstrom Aerospace 的收購，並期待在 2025 年第一季開始整合活動。

Moving now to our fleet segment first, leadership transition will lead the priorities for the fourth quarter.

現在首先轉向我們的機隊部門，領導層過渡將引領第四季度的優先事項。

As reported earlier this year, Chad Wheeler Group, President of fleet segment is transitioning from his leadership role this month to a consultant.

根據今年稍早報道，查德惠勒集團 (Chad Wheeler Group) 車隊部門總裁本月將從領導角色轉變為顧問。

Chad will support with the transition over the next 12 months.

乍得將在未來 12 個月內支持過渡。

I would personally like to thank Chad for his incredible partnership and countless accomplishments achieved over his 33-year tenure with the company.

我個人要感謝 Chad 在公司 33 年的任期內與他建立了令人難以置信的合作夥伴關係並取得了無數的成就。

Next, we remain focused on scaling our new distribution and e-commerce fulfilment centre including adding new e-commerce channels and exclusive brands.

接下來，我們將繼續專注於擴大新的分銷和電子商務履行中心，包括增加新的電子商務管道和獨家品牌。

Third, we will continue to support all U SPS vehicle types including legacy and new vehicles while managing through the temporary disruption and activity brought on by their new system conversion.

第三，我們將繼續支援所有美國 SPS 車輛類型，包括舊車輛和新車，同時應對新系統轉換帶來的臨時中斷和活動。

Fourth, we remain focused on our organic growth and customer diversification within our commercial fleet businesses as we look to add partners' products and exclusive offerings.

第四，在我們尋求增加合作夥伴的產品和獨家產品的同時，我們仍然專注於商業車隊業務的有機成長和客戶多元化。

In summary, we continue to make significant progress on our aviation operating priorities and remain focused on delivering another year of year over year revenue growth and improved profitability within fleet.

總而言之，我們繼續在航空營運重點方面取得重大進展，並繼續專注於實現收入同比增長和機隊盈利能力的提高。

We remain committed to scaling our commercial fleet business and managing through the near term and temporary challenges within the USPS.

我們仍然致力於擴大我們的商業車隊業務，並應對 USPS 內部的短期和臨時挑戰。

We are focused on generating much stronger free cash flow in the fourth quarter as compared to the third quarter of 2024 I would like to conclude by thanking the VSC team for all they do daily to support our stakeholders.

與 2024 年第三季相比，我們致力於在第四季度產生更強勁的自由現金流，最後我要感謝 VSC 團隊每天為支持我們的利害關係人所做的一切。

We are building a recognized industry brand, and it is all the result of our outstanding teams around the globe and how they support their customer and supplier partners and each other each and every day operator.

我們正在打造一個公認的行業品牌，這都是我們全球優秀團隊以及他們如何支持客戶和供應商合作夥伴以及每個日常運營商相互支持的結果。

We are now ready for the question-and-answer portion of the call.

我們現在已準備好進行電話問答部分。

Thank you.

謝謝。

We will now begin the question-and-answer session to ask a question.

我們現在將開始問答環節來提出問題。

You may press star then one on your touchtone phone.

您可以按按鍵式電話上的星號，然後按一個。

If you're using a speaker phone, please pick up your handset before pressing the keys to withdraw your question.

如果您使用免持電話，請在按按鍵撤回問題之前拿起聽筒。

Please press star then two at this time, we'll pause momentarily to assemble a roster, and our first question comes from Sheila Kog, from Jeffreys.

此時請按星號然後按兩顆星，我們將暫停片刻以收集名單，我們的第一個問題來自 Jeffreys 的 Sheila Kog。

Please go ahead.

請繼續。

Hey, good morning, guys and day quarter and welcome her up.

嘿，大家早安，歡迎她的到來。

Welcome on maybe John for you.

歡迎約翰為您服務。

Let's talk about aviation growth.

我們來談談航空業的成長。

Just another phenomenal quarter up 13% organically.

這又是一個驚人的季度有機成長 13%。

How much is the guidance range would you say was organic, outperformance versus better contribution from PCI that you're seeing running ahead of plans.

您認為指導範圍是多少是有機的，優於您所看到的 PCI 的更好貢獻，超出了計劃。

The wait.

等待。

So Michael and Adam the third.

所以麥可和亞當是第三個。

Good morning, Sheila.

早安，希拉。

So, the 13% was XTC I correct.

所以，13% 是 XTC，我是對的。

Correct.

正確的。

Yeah.

是的。

Yeah.

是的。

So, 13% is without TCITC.

因此，13% 沒有 TCITC。

I had a phenomenal growth quarter.

我度過了一個驚人的成長季度。

On their own is that I, I want to make sure I understood your question.

就他們自己而言，我想確保我理解你的問題。

Perfect.

完美的。

So, what's driving that Aviations?

那麼，是什麼推動了航空業的發展呢？

Yeah, I mean, it's interesting, it's, it's higher growth in in MRO than distribution, you know, I was really pleased with the growth rate because remember we're, you know, we're business and general aviation and commercial and that business aviation market is stabilizing nicely kind of mid single digits right now.

是的，我的意思是，這很有趣，MRO 的成長比分銷更高，你知道，我對成長率感到非常滿意，因為請記住，我們是商業、通用航空和商業，而且公務航空市場目前正穩定在中等個位數的水平。

So, in totality, when we look at the kind of our above market growth, it's you know, it's for us in our in our market specifically, it's strong performance.

因此，總的來說，當我們看到上述市場成長的類型時，你知道，這對我們的市場而言，特別是，這是強勁的表現。

It's definitely our growth is is greater in the MRO side than distribution.

毫無疑問，我們在 MRO 方面的成長比分銷方面更大。

But H1stly, it was pretty balanced.

但首先，它非常平衡。

I mean, we've got contributions from, you know, almost all of our major programs.

我的意思是，我們幾乎所有的主要項目都做出了貢獻。

Nice kind of share of wallet gains expansion in some of our capabilities on our mo side, some nice new smaller business wins that are turning out to be nicer than we had anticipated.

我們在移動方面的一些能力得到了很好的錢包份額的擴展，一些不錯的新的小型業務的勝利，結果比我們預期的要好。

It's it's a great balanced quarter.

這是一個非常平衡的季度。

So, it's not like one thing drove it, which is, you know, the best answer you can have.

所以，這並不是一件事驅動的，你知道，這是你能得到的最好答案。

Okay.

好的。

Maybe that brings my second question and John, since it was pretty balanced distribution of 12, so neck and neck in terms of organic growth, maybe how do you think about the exit rate as we exit the year underlying market for MRO versus distribution and maybe share gains that you had given the wins you have.

也許這帶來了我的第二個問題和約翰，因為它是 12 的相當平衡的分佈，所以在有機增長方面並駕齊驅，也許當我們退出 MRO 與分銷的基礎市場時，您如何看待退出率，也許分享你所獲得的勝利所帶來的收穫。

How do we think about that as we exit the year and into 25?

當我們進入 25 年後，我們如何看待這個問題？

Yeah, I think as we get into 25 you know, I think in totality, we feel very, you know, comfortable.

是的，我想當我們進入 25 歲的時候，我想總的來說，我們感覺非常，你知道，很舒服。

We've said that we'll continue to outpace the market growth and be in a double-digit margin growth, you know, organic growth perspective for next year.

我們說過，我們將繼續超越市場成長，並實現兩位數的利潤率成長，你知道，明年的有機成長前景。

And that includes a definitely, I wouldn't say a softening of business in general aviation, but a moderation so that that market is probably, you know, going to grow somewhere, you know, 6% on the high end, you know, kind of 4% on the low end.

這肯定包括，我不會說通用航空業務的疲軟，而是一種適度的增長，以便該市場可能會在高端增長 6%，有點低端的 4%。

And, but we still feel with the share gain that we have won and what has not yet been realized that it puts us in a, you know, a double-digit growth trajectory for next year?

而且，但我們仍然認為我們已經贏得了份額成長，但尚未意識到它使我們明年處於兩位數的成長軌跡？

Okay.

好的。

Thank you.

謝謝。

Thank you.

謝謝。

The next question comes from Kennet Herbert from RBC capital markets.

下一個問題來自加拿大皇家銀行資本市場的肯尼特·赫伯特。

Please go ahead.

請繼續。

Yeah.

是的。

Hey John and Adam and Michael.

嘿約翰、亞當和麥可。

Good morning.

早安.

Maybe John looking at the, looking at the growth you're seeing within, within your end markets, within aviation.

也許約翰會關注你在終端市場和航空業中看到的成長。

How much for the industry do you think distribution is, is taking share as a part of overall, you know, part sales into the aftermarket?

您認為分銷對該行業來說是多少，將份額作為整體銷售的一部分，您知道，部分銷售進入售後市場？

Yeah, I think it's a great question.

是的，我認為這是一個很好的問題。

I, I think I, I, you know, on a personal level, I, I, you know, I think I've shared with you a number of times can I think the market's growing a little slower on the distribution side than, you know, what you see in totality.

我，我想我，我，你知道，在個人層面上，我，我，你知道，我想我已經和你分享過很多次了，我認為市場在分銷方面的增長是否會比，你知道，你所看到的全部。

I think many of us have been gaining share, you know, over the last number of years and you were starting to realize those gains.

我認為我們中的許多人在過去幾年中一直在獲得份額，並且您已經開始意識到這些收益。

So, you know, so I, I think that on the commercial side, you're really looking at kind of mid to high single digits.

所以，你知道，所以我認為，在商業方面，你真正關注的是中高個位數。

And I think on the business and general aviation side, it's like mid-single digits in terms of where I think the market is and then the rest is us outperforming that market with share gains and kind of share a wallet expansion and the like you know, with our existing OEMS and our existing, you know, product lines.

我認為在商業和通用航空方面，就我認為的市場狀況而言，這就像中個位數，然後剩下的就是我們通過份額收益和分享錢包擴張等來超越該市場。的OEM 和現有的產品線。

Okay?

好的？

That's helpful.

這很有幫助。

And as we look into 2025 can appreciate the commentary on the top line.

當我們展望 2025 年時，可以欣賞最上面的評論。

Maybe without getting specifics in terms of margin expectations, maybe you can just walk through a couple of the maybe moving pieces as we think about aviation segment margins next year and, and how they could look compared to 24.

也許在沒有獲得利潤率預期方面的具體細節的情況下，也許你可以在我們考慮明年航空部門的利潤率以及與 24 小時相比時，瀏覽一些可能會發生變化的部分。

Yeah, I think we need to; we have some work to do internally on how to present it because we obviously have a $200 million business coming on board in the fourth quarter.

是的，我認為我們需要這樣做；我們在內部需要做一些關於如何呈現它的工作，因為我們顯然有一個 2 億美元的業務將在第四季度上線。

That's at a lower margin percentage.

那是較低的利潤率。

So how we kind of share, both the impact of CI and Kellstrom next year.

那我們如何分享明年 CI 和 Kellstrom 的影響。

So, to give investors and yourselves confidence that our kind of core business and integrated assets, that that margin is kind of stabilized, let's say 16 plus.

因此，為了讓投資人和你們自己對我們的核心業務和綜合資產充滿信心，我們的利潤率是穩定的，比如說 16 以上。

And then you're going to see an impact on that, you know, DC I and KSR, until we start integrating, we will start integrating pretty quickly.

然後你會看到對此的影響，你知道，DC I 和 KSR，在我們開始整合之前，我們很快就會開始整合。

But we need to find the right way to, to demonstrate that because you've got some puts and takes.

但我們需要找到正確的方法來證明這一點，因為你已經有了一些看法。

But I'd say if you do the math, that way, you know, you can get a feel of the core organic business and the biggest driver of margin improvement there is going to be the H1ywell Fuel Control program and that implementation.

但我想說，如果你計算一下，你知道，這樣你就可以感受到核心有機業務和利潤率改善的最大推動力，那就是 H1ywell 燃油控制計劃及其實施。

And then you know, you've got those other two business which is on a margin percentage is slightly dilutive, but there's integration and other activities that will happen throughout 25 to put them in a stronger position as we get into 20 at the end of the year.

然後你知道，你還有其他兩項業務，其利潤率略有稀釋，但在 25 年內將進行整合和其他活動，使它們在 20 年底時處於更有利的地位。

Okay.

好的。

Very helpful.

非常有幫助。

So obviously, as we look at the core organic business, aside from the, the fuel control or the, you know, sort of the licensing EBITDA contribution next year, we should expect just the base MRO and distribution business to see margin expansion off 16 or I mean, sorry off the off the 24 levels.

顯然，當我們審視核心有機業務時，除了燃料控製或明年的許可 EBITDA 貢獻之外，我們應該預計僅基礎 MRO 和分銷業務的利潤率就會擴大 16或者我的意思是，抱歉，關卡已經過了24 個關卡了。

Right?

正確的？

That's the way they look at them.

這就是他們看待他們的方式。

I would say, you know, based on what we said, Ken going back to November of 2023 on our guidance that we provided the initial increase in 2025/2024 was related to the implementation of the fuel control program.

我想說，你知道，根據我們所說的，肯回到 2023 年 11 月，根據我們的指導，我們在 2025/2024 年提供的初步增加與燃料控制計劃的實施有關。

So, we've been able to take some of those benefits up front in 2025 but we see incremental benefits in 2025 as well as we fully build out those capabilities and burn off that higher cost inventory.

因此，我們已經能夠在 2025 年預先獲得其中一些好處，但我們會在 2025 年看到增量收益，並且我們會完全建立這些能力並燒掉成本較高的庫存。

Okay, perfect.

好的，完美。

Thanks Michael.

謝謝邁克爾。

Thanks John and Adam, thanks.

謝謝約翰和亞當，謝謝。

Thanks.

謝謝。

The next question comes from Michael Ciarmoli from Truist.

下一個問題來自 Truist 的 Michael Ciarmoli。

Please go ahead.

請繼續。

Hey, good morning, guys.

嘿，早上好，夥計們。

Nice results.

不錯的結果。

Thanks for morning.

謝謝你早上。

Thanks for taking the question.

感謝您提出問題。

Maybe just to stay on, on this topic of kind of market share and growth.

也許只是繼續討論市場佔有率和成長這個話題。

I mean, are you, are you seeing or taking share specifically or seeing opportunities from Boeing Global Services?

我的意思是，您是否正在看到或具體分享或看到波音全球服務的機會？

And then I guess you know it on the MRO side too.

我想您在 MRO 方面也了解這一點。

I mean, it seems like there's a real shortage of capacity.

我的意思是，看來產能確實短缺。

It seems like, you know, we've got some established players adding new capacity.

看起來，你知道，我們已經有一些老牌企業增加了新的產能。

Does that that do either of those dynamics have any impact on on sort of your growth on a go forward basis?

這些動態中的任何一個對您未來的成長有任何影響嗎？

Yeah, I mean, Michael, you love to ask the competitive questions.

是的，我的意思是，邁克爾，你喜歡問有競爭力的問題。

So, I think about how much I want to share, you know, publicly, but I I would say there's three real areas of growth for us number one is, you know, we're very OEM centric in what we do.

所以，我想我想公開分享多少，你知道，但我想說，我們有三個真正的成長領域，第一個是，你知道，我們的工作非常以 OEM 為中心。

And as our model is starting to resonate with OEMS, the OEMS are coming to us and we're having strategic stations of, hey, here's work I'm doing today that I don't want to do or I shouldn't be doing or I need to find another solution for and we're winning a lot of work that way.

隨著我們的模式開始與原始設備製造商產生共鳴，原始設備製造商來找我們，我們有戰略站，嘿，這是我今天正在做的工作，但我不想做或不應該做或我需要找到另一個解決方案，這樣我們就贏得了許多工作。

So that's work that's not competitively been in the market.

因此，這是一項在市場上沒有競爭力的工作。

My competition is not running after that work and it's not kind of in the market today.

我的競爭對手並不是追求這項工作，而且它在今天的市場上也不是這樣的。

It's being done by the OEMS.

這是由 OEM 廠商完成的。

The second group is definitely traditional share gain.

第二組絕對是傳統的股票報酬。

And you are thinking of the largest player out there specifically in terms of distribution.

你正在考慮的是最大的參與者，特別是在分銷方面。

And I think, you know, many of us in the market are looking at opportunities to gain share against that large player.

我認為，你知道，市場上的許多人都在尋找機會來贏得與大型企業的競爭份額。

And you are correct on the third, you know, we saw really strong growth in our MRO businesses in the third quarter including TC I and it's really a function of creating capacity.

您在第三點上是正確的，您知道，我們在第三季度看到 MRO 業務（包括 TC I）的強勁增長，這確實是創造產能的函數。

So we're really doing a lot of capacity planning, you know, looking at different shifts, looking at how we manage our shop floor.

所以我們確實做了很多容量規劃，你知道，研究不同的班次，研究我們如何管理車間。

Because opening up that capacity in and of itself is what's driving the revenue turnaround time continues to be, you know, the most significant kind of differentiator in the market in terms of MRO ability to win new business.

因為開放這種能力本身就是推動收入週轉時間的因素，您知道，就贏得新業務的 MRO 能力而言，這仍然是市場上最重要的差異化因素。

Got it, that's helpful.

明白了，很有幫助。

And, and what about pricing?

還有，定價又如何呢？

Is there any pricing contribution to, to kind of your growth or, or above market growth?

定價是否對您的成長或高於市場成長有任何貢獻？

Are you able to get price?

你能拿到價格嗎？

I mean, obviously, yes, turn times and able to win business, but are you, are you seeing price across, you know, distribution in tomorrow?

我的意思是，顯然，是的，週轉時間並且能夠贏得業務，但是您是否看到明天的價格分佈？

Yes, I mean, price is always, you know, we look at price and volume when we look at growth.

是的，我的意思是，價格始終是，你知道，當我們考慮成長時，我們會考慮價格和數量。

So price always has an element of volume.

所以價格總是有數量的因素。

I would say, you know, since I've been at the business, you know, I kind of joined during that COVID period and that post COVID period where you saw price have a bigger impact than we saw kind of in the preceding cycle.

我想說，你知道，因為我一直在這個行業，你知道，我是在新冠疫情期間和後新冠疫情期間加入的，你看到價格的影響比我們在上一個週期中看到的影響更大。

I would say it's moderating a bit.

我想說的是，它有點緩和了。

It's still an element of the total the total growth rate, but it's definitely moderating a bit compared to what we saw.

它仍然是總成長率的一個組成部分，但與我們所看到的相比，它肯定有所放緩。

You know, two years ago.

你知道，兩年前。

Perfect.

完美的。

Thanks guys.

謝謝你們。

I'll jump back in the queue here.

我會回到這裡的隊列。

The next question comes from Jeff Van Sinderen from B Riley Securities.

下一個問題來自 B Riley 證券公司的 Jeff Van Sinderen。

Please go ahead.

請繼續。

Hey, good morning, everyone.

嘿，大家早安。

Just wanted to follow up a little bit on the fuel control business.

只是想跟進一下燃油控制業務。

If you could just remind us what's driving the I guess what's driving that, that segment to run ahead of plan.

如果您能提醒我們是什麼推動了我猜是什麼推動了該部分提前計劃。

And then based on the current run rate of that fuel control business, when do you expect to burn off the high-cost inventory.

然後根據該燃料控制業務當前的運作率，您預計何時消耗掉高成本庫存。

Yeah, I mean, I mean, you just, you just answered the question, it's all about burning off the inventory.

是的，我的意思是，我的意思是，你只是，你剛剛回答了問題，這一切都是關於燒掉庫存的。

So, you know, it's, the model in and of itself is pretty tight and clean and it's all about how fast the supply chain can, you know, the new inventory comes in at the new cost and how fast we can sell either full units or partial units or kits or the like at the, the old cost.

所以，你知道，這個模型本身是非常緊湊和乾淨的，這一切都與供應鏈的速度有關，你知道，新庫存以新成本進入，以及我們可以多快銷售整個單位或部分單位或套件或類似的舊成本。

So, so that's, you've got exactly the model of what's going to determine what's there in terms of improvement.

因此，您已經獲得了將決定改進方面的確切模型。

So, it's a combination, the market is very robust.

所以，這是一個組合，市場非常強大。

So it's really a supply chain that's driving it because sometimes you, even though I've got 80% of the parts, I can't ship a full unit until I have 100% of the parts, getting supply chain really short up and getting the product that we need in in totality.

所以這實際上是一個供應鏈在推動它，因為有時即使我已經有了 80% 的零件，但在我擁有 100% 的零件之前我無法運送完整的設備，從而導致供應鏈非常短缺並得到我們需要的產品的整體。

So, I can, you know, put together full units, that's what's going to drive the burn down of the legacy inventory.

所以，我可以，你知道，將完整的單位放在一起，這將推動遺留庫存的燃燒。

So we had a forecast going through 2025.

所以我們預測到 2025 年。

We're slightly ahead of plan.

我們比計劃稍微提早了一些。

I wouldn't say that I expect anything to dramatically shift from here.

我不會說我期望任何事情都會從這裡發生巨大的變化。

Okay.

好的。

That's helpful.

這很有幫助。

And then with the overall growth of your MRO business, can you touch on the current margins there that you're achieving and then maybe speak to opportunities to potentially increase margin rate as MRO scales further.

然後，隨著 MRO 業務的整體成長，您能否談談您目前實現的利潤率，然後談談隨著 MRO 規模進一步擴大，潛在提高利潤率的機會。

Yeah, I mean, we don't break out margin by sector.

是的，我的意思是，我們不會按部門細分利潤率。

I can tell you that the margins, you know that there's this port things in our portfolio that are all different margins for different reasons.

我可以告訴你，利潤率，你知道我們的投資組合中有一些端口產品，由於不同的原因，它們的利潤率都不同。

We have seen continued total, you know, if you look at the business on a total EBITDA basis or kind of a, you know, a segment P&L within e you know, the aviation MRO businesses, you know, we have a general manager of each shop and we are seeing, you know, kind of, I'd say income margins improve and it's a combination of factors.

我們看到了持續的總額，你知道，如果你以 EBITDA 總額為基礎來看業務，或者你知道，航空 MRO 業務中的一個部門損益表，你知道，我們有一位總經理每家商店，我們都看到，你知道，我想說，收入利潤率有所提高，這是多種因素的結合。

It's running supply chain better, it's more efficiency in the shop.

它可以更好地運行供應鏈，提高商店的效率。

You know, it's managing labor better.

你知道，它可以更好地管理勞動力。

It's a combination of factors.

這是多種因素的結合。

But we are continuing to see, you know, you know, consistent improvement as, you know, as part of our kind of continuous improvement philosophy in those shops.

但我們繼續看到，你知道，你知道，持續改進，你知道，作為我們這些商店持續改進理念的一部分。

And so I would say it wouldn't be a one, a one and done on any of that.

所以我想說這不會是一個，一個，一個就完成了。

It's, it's a, it's a number of factors.

這是，這是，這是有很多因素。

Okay, great.

好的，太好了。

That's helpful.

這很有幫助。

And then I guess just any, any other caller, I realize it's, it's still early and you haven't even closed the acquisition yet.

然後我想任何其他來電者，我意識到，現在還為時過早，你甚至還沒有完成收購。

But just thinking about 2025 with Calstrom realized you still have integration to go.

但只要想到 2025 年與 Calstrom 的合作，您就會發現您仍然需要整合。

But I guess any, any thoughts on how that creation of the integration might proceed in 2025 kind of when you get through that.

但我想，當你度過這一切之後，關於如何在 2025 年創建整合的任何想法都會發生。

What the case might look like.

案件可能會是什麼樣子。

Yeah, I mean, they, they run their business in a few different business segments.

是的，我的意思是，他們在幾個不同的業務領域經營業務。

So, you know, our next earnings call about end of February, early March, we'll be in a position then to kind of walk you through the integration plan and kind of what to expect.

所以，你知道，我們的下一次財報電話會議將於二月底、三月初舉行，屆時我們將能夠引導您完成整合計畫以及預期的內容。

So we, we plan to look at it and integrating it, you know, kind of business segment by business segment.

因此，我們計劃研究並整合它，你知道，按業務部門進行整合。

But I would tell you that at this point, we will, it'll probably go ahead of TCITC.

但我想告訴你，在這一點上，我們可能會領先 TCITC。

I, you know, our a our work there is more about adding capacity in the shop floor and it needs less kind of integration support and we'll probably, you know, work on the KST integration piece first because it'll drive some sales and other types of synergies that we want to realize as soon as possible.

我，你知道，我們的工作更多的是增加車間的產能，它需要較少的集成支持，你知道，我們可能會首先處理 KST 集成部分，因為它將推動一些銷售以及我們希望盡快實現的其他類型的協同效應。

So we're actually, you know, meeting with the team today to kind of finalize how we feel about 25 and you know, put ourselves in a position to hit the ground running January 1.

所以，你知道，我們今天實際上正在與團隊開會，以最終確定我們對 25 歲的看法，你知道，讓我們自己能夠在 1 月 1 日開始工作。

Okay, great.

好的，太好了。

Thanks for taking my questions.

感謝您回答我的問題。

Thank you again.

再次感謝您。

If you have a question, please press star.

如果您有疑問，請按星號。

Then one and the next question comes from Noah Levitz from William Blair.

接下來的一個問題來自威廉·布萊爾的諾亞·萊維茨。

Please go ahead.

請繼續。

John Adam and Michael.

約翰·亞當和邁克爾。

Good morning.

早安.

This is Noah Im for Louis Dipalma.

我是諾亞·伊姆（Noah Im），代表路易斯·迪帕爾瑪（Louis Dipalma）。

Thanks for taking my questions.

感謝您回答我的問題。

Hey, Noah, how are you doing?

嘿，諾亞，你好嗎？

Well, thank you to start off you've acquired now, both turbine and Telstra which serve the commercial engine after market.

好吧，首先感謝您現在已經收購了為商用引擎售後市場提供服務的渦輪機和澳洲電信。

Can you talk a little bit about what you're finding particularly attractive about the commercial engine aftermarket space?

能談談您認為商用引擎售後市場空間特別有吸引力的地方嗎？

As you're expanding beyond the business and general aviation side and the $4 million in synergies, is that expected to be more cost synergies or will there be some revenue contribution as well?

當您的業務範圍超出商業和通用航空領域以及 400 萬美元的協同效應時，預計這會帶來更多的成本協同效應還是也會帶來一些收入貢獻？

Thanks.

謝謝。

Yeah, I mean, I think first I'll talk about the market.

是的，我的意思是，我想首先我會談談市場。

You know, and if you look at, you know, a lot of the public companies out there like Standard Arrow or there's a lot of, you know, great businesses that are, I wouldn't say are competitive to us that are complementary or do some different types of things and you can see their growth rate.

你知道，如果你看看，你知道，有很多像 Standard Arrow 這樣的上市公司，或者有很多，你知道，偉大的企業，我不會說對我們有競爭力，是互補的或做一些不同類型的事情，你可以看到它們的成長率。

I think it's a combination of factors of why that market is really robust, you know, in terms of aircraft that are aging, that are going through more unplanned repairs than anticipated because of you know, build rate declines at the OEMS coupled with some new engine types that are coming to market where the OEMS are now focused on those engines.

我認為這是一個綜合因素，解釋了為什麼這個市場非常強勁，你知道，就老化的飛機而言，這些飛機正在經歷比預期更多的計劃外維修，因為你知道，原始設備製造商的建造率下降，再加上一些新的飛機即將上市的發動機類型，原始設備製造商現在專注於這些發動機。

So, there's more work on legacy engines that are going to, you know, that are going to hit third parties like us.

因此，遺留引擎上還有更多的工作，你知道，這將影響像我們這樣的第三方。

I think those are the two reasons that we see the market very, very attractive.

我認為這是我們認為市場非常非常有吸引力的兩個原因。

You know, the other thing, it's a complex market and it's it's one that distribution and MRO really serve and add real value in the space.

你知道，另一件事是，這是一個複雜的市場，而分銷和 MRO 才能真正服務並增加該領域的真正價值。

With regard to, to, to cynergy, I mean, they come from a variety of of places.

關於 cynergy，我的意思是，它們來自不同的地方。

I would tell you that you know, we have a strong core competency in terms of integration and, you know, we feel very confident and obviously we publicly shared a number in our ability to drive that to closure over the next, you know, 12 to 15 months.

我想告訴你，你知道，我們在整合方面擁有強大的核心能力，你知道，我們非常有信心，顯然我們公開分享了我們有能力在未來推動這一目標的數字，你知道，12至15 個月。

Got it.

知道了。

Thank you.

謝謝。

And then a follow up Now that you've done the secondary and giving yourself a little bit more wiggle room with leverage.

然後是後續行動現在你已經完成了次要任務，並給自己更多的槓桿空間。

Can you talk about future M&A you've been highly inquisitive this year, in particular?

您能談談您今年特別感興趣的未來併購嗎？

Would you like, is that still, you know, in the playbook, is there anything in the pipeline?

你想知道，在劇本中，還有什麼正在醞釀嗎？

And would it divert from the new commercial engine aftermarket that you've kind of focused on with the past two?

它會偏離您在過去兩個項目中關注的新商用引擎售後市場嗎？

Thanks.

謝謝。

Yeah, I mean, it's a great question, you know, we've been acquisitive and we'll, we'll continue to be acquisitive.

是的，我的意思是，這是一個很好的問題，你知道，我們一直在收購，我們將繼續收購。

I would say it's not a necessity to our story.

我想說這對我們的故事來說不是必需的。

This is not a roll up story.

這不是一個捲起來的故事。

This is, you know, we're adding capabilities, customers, products and the like, so the right assets that are out there, we obviously want to be a player in that space.

你知道，我們正在增加功能、客戶、產品等，因此我們顯然希望成為該領域的參與者。

Because a lot of assets didn't trade during COVID as they waited for the market to recover there happens to be, you know, a decent number of assets that hit the market this year.

因為許多資產在新冠疫情期間沒有進行交易，等待市場復甦，所以今年剛好有相當數量的資產進入市場。

And we found the two that, that really kind of matched our strategic portfolio the best and thought that was best to execute on those two.

我們發現這兩者確實最適合我們的策略投資組合，並且認為這兩者最適合執行。

The difference in what others do versus what we do is we fully integrate our businesses.

別人所做的事情與我們所做的事情的不同之處在於我們完全整合了我們的業務。

So the when I and you asked me today, 2025 is going to be about integrating the businesses, optimizing the businesses, getting our platform and our foundation ready for that next phase of both organic and inorganic growth.

因此，當我和你今天問我時，2025 年將是整合業務、優化業務、讓我們的平台和基礎為下一階段的有機和無機成長做好準備。

That said, you know, we we always keep a pipeline of M&A you know, is there anything absolutely pending?

也就是說，我們總是保持併購管道，有什麼絕對懸而未決的事情嗎？

No, but but if you know, if the right transaction comes along, we look at it.

不，但是如果你知道，如果出現正確的交易，我們就會關注它。

But I would say right now, our near term focus is closing on KSR again, as I mentioned a minute ago, probably KSR will be integrated first getting T CIA pro you know, expanded, expand those that shop floor and get them ready.

但我現在要說的是，我們近期的重點再次集中在KSR 上，正如我一分鐘前提到的，可能KSR 將首先與T CIA pro 集成，你知道，擴展，擴展那些車間並讓它們做好準備。

The growth is and the opportunities are planned, pull out there and really positioning our business for the next phase of organic growth as well.

成長和機會都已規劃好，退出那裡並真正為我們的業務定位於下一階段的有機成長。

It's tuck in M&A happens great.

併購的發生非常棒。

If it doesn't happen, we'll keep our balance sheet nice and clean and continue to hopefully generate stronger free cash flow in the back end of this year and into next year.

如果這種情況沒有發生，我們將保持資產負債表乾淨整潔，並預計在今年年底和明年繼續產生更強勁的自由現金流。

So we make the balance sheet look look even stronger and focus on execution.

因此，我們讓資產負債表看起來更強勁，並專注於執行。

Great.

偉大的。

Thank you.

謝謝。

That's all from me.

這就是我的全部。

The next question comes from Joshua Sullivan from benchmark.

下一個問題來自基準測試的 Joshua Sullivan。

Please go ahead.

請繼續。

Hey, good morning, Jen

嘿，早安，珍

Good morning, Josh.

早上好，喬許。

What's your sense of the overall aftermarket cycle at this point?

您對目前整個售後市場週期有何看法？

You know the conversation around aftermarket versus OEM momentums picking up, you know, Boeing resolving the strike supply chain slowly improving but maybe not fast enough.

你知道，圍繞售後市場與原始設備製造商勢頭的對話正在升溫，波音解決罷工的供應鏈正在緩慢改善，但速度可能不夠快。

You know, what's your view of the aftermarket?

您知道，您對售後市場有何看法？

Both from you know, demand side, as well as supply side as you guys are exposed at this point.

你們知道，需求方和供應方此時都面臨風險。

Yeah, I mean, I continue to think the market is a little softer than others like meaning, you know, I think the market naturally is kind of, you know, on the commercial side closer to 10% than it is kind of above 10%.

是的，我的意思是，我仍然認為市場比其他市場要軟一些，你知道，我認為市場自然是，你知道，在商業方面接近 10%，而不是高於 10% %。

And I think that because of the combination of factors, I think there's capacity constraints.

我認為，由於多種因素的綜合作用，我認為存在容量限制。

I don't think supply chain is really that that's fixed and, you know, I think that there's always, it's like a whack a mole once one thing gets fixed the others other issue pops up in the market.

我不認為供應鏈真的是固定的，你知道，我認為一旦一個問題解決，市場上就會出現其他問題，就像打鼴鼠一樣。

You know, I, I feel that there's a kind of a, you know, abundance of factors out there do look at 25 and even into 26 I don't believe you're going to see build rates back to kind of historic levels and you're going to see kind of slow and steady growth in build rates for new aircraft.

你知道，我，我覺得有一種，你知道，有大量的因素確實在關注 25 甚至 26，我不相信你會看到建設率回到歷史水平你會看到新飛機的建造率緩慢而穩定地增長。

So, I do believe we've got, you know, two more years of nice strong organic growth into the cycle.

因此，我確實相信我們在這個週期中還有兩年的強勁有機成長。

And then maybe one on the fleet segment, just know the post office operating system any different now with this, this new P in place as it relates to your business historically.

然後也許是車隊領域的一個，只需知道郵局操作系統現在與此有何不同，這個新的 P 就位，因為它與您的業務歷史相關。

Thank you, Michael.

謝謝你，麥可。

Yeah, no, I would say from the new FMIS system.

是的，不，我想說的是新的 FMIS 系統。

So we are our, our position with them is as strong as it has been.

所以我們是我們的，我們對他們的立場一如既往地堅定。

We're very much embedded within their supply chain.

我們非常融入他們的供應鏈。

So it's a matter of just working with them, working through the kinks and the processes and helping them essentially repair these these legacy, but also the new vehicles that are coming into the installed base.

因此，問題在於與他們合作，解決問題和流程，幫助他們從根本上修復這些遺留問題，以及即將進入安裝基地的新車。

So we're, we're continue to be here to support the U SPS through this transition.

因此，我們將繼續支持美國 SPS 完成這項過渡。

And we see, you know, positive results in terms of the vehicle maintenance facilities that had been moved to the new RP system and have now begun to recover now that we've passed this point in time in terms of the completion, which happened during the third quarter, we should see a nice recovery into the fourth quarter and that should extend into the first half into 2020 five.

我們看到，您知道，車輛維護設施取得了積極成果，這些設施已轉移到新的 RP 系統，現在已經開始恢復，因為我們已經過了完成時間點，這發生在第三季度，我們應該會看到第四季的良好復甦，並且這種情況應該會延續到2020 年第五季的上半年。

Yeah, I think one thing to add Josh is that, you know, it's interesting, we were with the team last week and I was like, you're accurate in your forecast because it seems quite complicated to me.

是的，我認為喬許要補充的一件事是，你知道，這很有趣，我們上周和團隊在一起，我想，你的預測很準確，因為對我來說這似乎相當複雜。

And they're like, at this point is just math, we have data on the first sites that went live and how they're recovering.

他們就像，現在只是數學，我們有關於第一個上線的網站以及它們如何恢復的資料。

It's, the system still is not, I would, I would say the most efficient.

它的，這個系統仍然不是，我會，我會說是最有效的。

So we're not seeing even at the sites that went live a year ago, we're not seeing those levels.

因此，即使在一年前上線的網站上，我們也沒有看到這些水平。

We're not seeing kind of pre sys, you know, level that what what it was before the system, you know, transition happened.

我們沒有看到系統前的水平，你知道，系統發生轉變之前的水平。

So it's, it's a slow, gradual kind of increase as we get into next year.

所以，隨著我們進入明年，這是一個緩慢、漸進的成長。

The big question is where it levels off because the fleet transition, you know, kind of happened probably more like 85 (inaudible) percent of kind of where it was at the peak.

最大的問題是它在哪裡趨於平穩，因為機隊的轉變，你知道，發生的情況可能更像是高峰時的 85%（聽不清楚）。

Great.

偉大的。

Thank you for the time.

謝謝你的時間。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to John Cuomo for any closing remarks.

我想將會議轉回約翰·科莫發表閉幕詞。

Thank you everybody for making time for us today.

感謝大家今天抽出時間來參加我們的活動。

I look forward to a strong finish to the year and speaking with you early in 2025.

我期待今年有一個圓滿的結束，並在 2025 年初與您交談。

Have a great day.

祝你有美好的一天。

The conference is now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。