VSE Corp (VSEC) 2025 Q1 法說會逐字稿

Good day and welcome to the VSE Corporation first quarter 2025 results conference call.

大家好，歡迎參加 VSE 公司 2025 年第一季業績電話會議。

(Operator Instructions)

（操作員指示）

I would now like to turn the conference over to Michael Perlman. Please go ahead.

現在我想將會議交給麥可‧珀爾曼。請繼續。

Thank you. Welcome to VSC Corporation's first quarter 2025 results conference call. We will begin with remarks from John Cuomo, President and CEO, followed by a financial update from Adam Cohen, our Chief Financial Officer.

謝謝。歡迎參加 VSC Corporation 2025 年第一季業績電話會議。我們將首先由總裁兼首席執行官約翰·庫莫 (John Cuomo) 致辭，然後由首席財務官亞當·科恩 (Adam Cohen) 介紹財務最新情況。

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

我們今天分享的簡報已發佈在我們的網站上，我們鼓勵您繼續關注。

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 their various risks and uncertainties, including those described in our periodic reports filed with the SEC, except as required by law, we undertake no obligation to update our forward-looking statements.

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

We are using non-gap financial measures in our presentation. Where available, the appropriate GAAP financial reconciliations are incorporated into our presentation and posted on our website. All percentages in today's discussion refer to year over year progress, except where noted.

我們在演示中使用無差距財務指標。如果有的話，適當的 GAAP 財務調節表將被納入我們的演示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增長。

Beginning in the first quarter of 2025, our results exclude the fleet segment, which was moved to discontinued operations following the announced sale of that business. At the conclusion of our prepared remarks, we will open up the line for questions. With that, I'd like to turn the call over to John.

從 2025 年第一季開始，我們的業績將不包括機隊業務，該業務在宣佈出售後已轉為停止營運業務。在我們準備好的發言結束後，我們將開放提問熱線。說完這些，我想把電話轉給約翰。

Good morning.

早安.

Thank you for joining us today for VSE's first quarter 2025 conference call.

感謝您今天參加 VSE 2025 年第一季電話會議。

This was truly an exceptional quarter for VSE.

對於 VSE 來說，這確實是一個非凡的季度。

We delivered record revenue and record profitability, a clear testament to the strength of our businesses, the resilience of our markets, the dedication of our teams, and the effectiveness of our ongoing transformation strategy.

我們實現了創紀錄的收入和盈利能力，這充分證明了我們業務的實力、市場的韌性、團隊的奉獻精神以及我們正在進行的轉型策略的有效性。

At the same time, we made significant strides in advancing our multi-year strategic transformation, all positioning DSE as a more focused, integrated, and margin and growth oriented platform.

同時，我們在推動多年策略轉型方面取得了重大進展，將 DSE 定位為一個更專注、一體化、以利潤和成長為導向的平台。

Let's begin on slide 3 and discuss recent business updates and developments.

讓我們從幻燈片 3 開始討論最近的業務更新和發展。

First, on April 1, we completed the sale of our fleet segment.

首先，4月1日，我們完成了機隊部門的出售。

This divestiture marks the official close of a significant chapter in our multi-year strategic transformation, one that positions VSE as a focused, pure play provider of aviation aftermarket parts and services.

此次資產剝離標誌著我們多年戰略轉型中一個重要篇章的正式結束，該轉型將 VSE 定位為專注於航空售後零件和服務的純粹供應商。

The divestiture represents the culmination of deliberate strategic actions, including multiple business exits, all aimed at repositioning the company for the future.

此次資產剝離代表公司一系列深思熟慮的策略行動，包括多項業務退出，旨在為公司的未來重新定位。

With this chapter complete, we are now fully focused on pursuing higher growth, higher margin opportunities in the aviation aftermarket, creating a long-term value for our customers, supplier partners, employees, and shareholders.

隨著本章的完成，我們現在完全專注於在航空售後市場尋求更高的成長、更高的利潤機會，為我們的客戶、供應商合作夥伴、員工和股東創造長期價值。

Second, we announced the acquisition of Turbin Weld Industries, a specialized MRO service provider of complex engine components for business and general aviation platforms. This acquisition marks another important step in the strategic expansion of our aviation services business, further positioning VSE as a comprehensive solution provider to our OEM and aftermarket partners.

其次，我們宣布收購 Turbin Weld Industries，這是一家專門為商務和通用航空平台提供複雜引擎零件的 MRO 服務供應商。此次收購標誌著我們航空服務業務策略擴張的又一重要舉措，進一步將 VSE 定位為我們 OEM 和售後市場合作夥伴的綜合解決方案提供者。

Turns is an outstanding business and well aligned with VSE's core strategy in the following areas.

Turns 是一家出色的企業，並且在以下領域與 VSE 的核心策略高度契合。

We enhances BSE's position in the business and general aviation engine aftermarket on two of the most widely used engine platforms, the PW 100 and the PT6.

我們透過兩個最廣泛使用的引擎平台 PW 100 和 PT6 增強了 BSE 在商務和通用航空發動機售後市場的地位。

Next, Turin Weld strengthens VSE's collaboration with OEM partners by developing numerous proprietary repair specifications as the sole source provider for many flight critical repairs. And finally, VSE plans to invest in Turbo wealth's operational capacity to address market demand and accelerated growth opportunities.

接下來，Turin Weld 作為許多飛行關鍵維修的唯一來源供應商，制定了大量專有維修規範，從而加強了 VSE 與 OEM 合作夥伴的合作。最後，VSE 計劃投資 Turbo Wealth 的營運能力，以滿足市場需求和加速成長機會。

Wealth generated approximately $20 million in revenue over the last 12 months, and the purchase price was approximately $50 million.

Wealth 在過去 12 個月內創造了約 2000 萬美元的收入，購買價格約為 5000 萬美元。

Third, we signed a new 5 year authorized service centre agreement with Eon to perform MRO services on hydraulic pumps. This marks Eaton's first ever authorized service centre collaboration and represents a significant enhancement to their aftermarket repair capabilities and customer support for these products. This agreement reinforces BSE's OEM partner value proposition.

第三，我們與Eon簽署了新的5年授權服務中心協議，為液壓泵提供MRO服務。這是伊頓首次與授權服務中心的合作，標誌著其對這些產品的售後維修能力和客戶支援的顯著提升。該協議強化了 BSE 的 OEM 合作夥伴價值主張。

Supporting OEMs in servicing their end user customers while also helping them monetize and protect their aftermarket business.

支援 OEM 為其最終用戶客戶提供服務，同時協助他們實現售後業務盈利並保護其售後業務。

And finally, last week we entered into a new $700 million credit facility, including a 5 year $300 million term loan and $400 million revolving credit facility to replace all existing credit facilities. Adam will discuss this in more detail, but this refinancing positions VSE to execute on our growth strategies with increased flexibility at a lower cost of capital.

最後，上週我們達成了一項新的 7 億美元信貸協議，其中包括一筆 5 年期 3 億美元定期貸款和 4 億美元循環信貸協議，以取代所有現有的信貸協議。Adam 將更詳細地討論這一點，但這次再融資使 VSE 能夠以更低的資本成本更靈活地執行我們的成長策略。

Let's now move to slide 4, where I'll provide a business update beginning with our integration activities.

現在我們來看第 4 張投影片，我將從整合活動開始提供業務更新。

Over the past 12 months, we've acquired two market leading commercial aerospace engine focused aftermarket businesses, both of which are performing ahead of plan.

在過去的 12 個月中，我們收購了兩家專注於商用航空發動機售後市場的領先企業，這兩家企業的表現都超出了計劃。

Let's start with TCI.

讓我們從 TCI 開始。

April marked the one year anniversary of TCI joining the VSE family. The business continues to exceed expectations, driven by strong input volumes and a robust backlog of work from our OEM engine partners. To support this growing demand and to position TCI for future expansion, we are investing an additional component repair capacity aligned with OEM requirements.

四月是 TCI 加入 VSE 大家庭一周年紀念日。受強勁的投入量和來自 OEM 引擎合作夥伴的大量積壓工作的推動，業務繼續超出預期。為了滿足日益增長的需求並為 TCI 未來的擴張做好準備，我們正在投資符合 OEM 要求的額外零件維修能力。

Telstra.

澳洲電信。

Integration efforts are well underway and progressing in line with our expectations. This reinforces our confidence in this transaction strategic rationale and in our ability to create meaningful value as we integrate the businesses.

整合工作正在順利進行，並且按照我們的預期進展。這增強了我們對此次交易策略原則的信心，也增強了我們在整合業務時創造有意義價值的能力。

We remain on track to achieve the $4 million in cost synergies we previously identified and are targeting near-term margins of 15% or greater as we optimize specific parts of the Kelstrom portfolio.

我們仍有望實現先前確定的 400 萬美元成本協同效應，並在優化 Kelstrom 產品組合的特定部分時將近期利潤率定為 15% 或更高。

Now moving on to program implementations.

現在轉到程式實作。

The transition of the H1ywell fuel control program is progressing with full operational capability and production expected within the next 12 months.

H1ywell 燃料控制計畫的過渡正在進行中，預計在未來 12 個月內實現全面運作和生產。

We made strong progress in building the necessary infrastructure, systems, and staffing to support this transition.

我們在建立支持此轉變所需的基礎設施、系統和人員方面取得了重大進展。

The expected financial contribution from this program is fully reflected in our 2025 guidance.

該計劃的預期財務貢獻已充分反映在我們的 2025 年指引中。

Additionally, as noted earlier, we recently launched the first ever authorized repair station for Eaton in the Americas. This is a natural extension of our long-standing distribution partnership supporting Eaton's fuel pumps for business and general aviation.

此外，如前所述，我們最近在美洲推出了第一個伊頓授權維修站。這是我們長期支持伊頓商務和通用航空燃油泵的分銷合作關係的自然延伸。

This new agreement expands our capabilities into hydraulic repairs and overhaul for commercial aviation customers.

這項新協議擴展了我們為商業航空客戶提供液壓維修和大修的能力。

And finally, the fleet segment of Eger.

最後是埃格爾的艦隊部分。

We are currently operating under a transition services agreement to ensure a seamless handoff. In parallel, we are conducting a comprehensive review of our corporate and business unit cost structure, ensuring we remain lean and efficient to support our go forward single segment aviation strategy.

我們目前正在根據過渡服務協議開展工作，以確保無縫交接。同時，我們正在對公司和業務部門的成本結構進行全面審查，確保我們保持精簡和高效，以支持我們推進的單一航空戰略。

I will now transition and provide an update on the current market environment for our business.

我現在將過渡並提供有關我們業務當前市場環境的最新資訊。

Despite broader global market uncertainties, particularly those stemming from evolving tariff policies, demand remains solid.

儘管全球市場存在更廣泛的不確定性，特別是來自不斷變化的關稅政策的不確定性，但需求仍然強勁。

This is supported by a continued strength in global passenger traffic trends.

全球客運量趨勢持續強勁，為其提供了支持。

We remain cautiously optimistic that aircraft utilization will hold strong throughout the remainder of the year. We should continue to support robust aftermarket demand outlook.

我們仍然謹慎樂觀地認為，今年剩餘時間內飛機利用率將保持強勁。我們應該繼續支持強勁的售後市場需求前景。

That said, our team is monitoring the situation closely and remains prepared to act as needed.

儘管如此，我們的團隊正在密切關注局勢，並隨時準備根據需要採取行動。

Based on current market trends, customer feedback, and our backlog and bookings, we are reaffirming our full year revenue guidance.

根據當前的市場趨勢、客戶回饋以及我們的積壓訂單和預訂情況，我們重申全年收入預期。

For 2025, we continue to expect commercial aftermarket growth in the range of 8% to 10%.

到 2025 年，我們預計商業售後市場成長率仍將在 8% 至 10% 之間。

Likewise, for our products and services supporting the business and general aviation customers, we maintain our projected growth rate of 5% to 6%.

同樣，對於支援商務和通用航空客戶的產品和服務，我們維持 5% 至 6% 的預期成長率。

Now turning specifically to tariffs, we've been proactive in working closely with our OEM partners to mitigate potential impacts both for our business and our end user customers. Here's how.

現在具體談到關稅，我們一直積極主動地與我們的 OEM 合作夥伴密切合作，以減輕對我們的業務和最終用戶客戶的潛在影響。方法如下。

First, our strong inventory position provides us flexibility in how and when we make purchases.

首先，我們強大的庫存狀況為我們提供了採購方式和時間的靈活性。

Second, our global distribution footprint enables us to optimize and adjust logistic flows where needed, and we're actively coordinating with supplier partners on this front.

其次，我們的全球分銷足跡使我們能夠在需要時優化和調整物流流程，並且我們正在積極與供應商合作夥伴進行這方面的協調。

Third, we're leveraging the USMCA exemptions to support trade flows from Mexico and Canada-based products and customers. And finally, where appropriate, we will pass through tariff-related surcharges.

第三，我們正在利用 USMCA 豁免來支持來自墨西哥和加拿大的產品和客戶的貿易流動。最後，在適當的情況下，我們將徵收與關稅相關的附加費。

We believe our diversified market exposure, including a balance present in both commercial and business aviation, our OEM-centric strategy, our key strengths that help us navigate in a dynamic and uncertain environment. To be clear, there's work to do, processes to implement and undertake, and uncertainty does exist for all of us until we understand the final trade agreements.

我們相信，我們多元化的市場影響力，包括在商業和公務航空領域的平衡發展、以 OEM 為中心的策略以及我們的關鍵優勢，可以幫助我們在動態和不確定的環境中前進。需要明確的是，在我們了解最終的貿易協定之前，還有很多工作要做，還有很多流程要實施和開展，而且我們所有人都面臨不確定性。

However, at this time, we do not expect any tariff-related impacts that would require us to revise our previously issued 2025 revenue or margin guidance, nor our organic growth expectations for either of our end user markets.

然而，目前，我們預計不會出現任何與關稅相關的影響，從而需要我們修改先前發布的 2025 年收入或利潤率指引，也不會修改我們對任何一個最終用戶市場的自然成長預期。

Let's now move to slide 5 to discuss our financial performance.

現在讓我們轉到投影片 5 來討論我們的財務表現。

In the first quarter of 2025, our consolidated revenues increased 58% to $256 million driven by strong financial performance from our core aviation distribution and MRO businesses and contributions from both the TCI and Celestron acquisitions. Our consolidated adjusted IBEA increased 60% to $40 million in the quarter, or 15.8% of revenue.

2025 年第一季度，我們的綜合收入成長 58%，達到 2.56 億美元，這得益於我們核心航空分銷和 MRO 業務的強勁財務業績以及 TCI 和 Celestron 收購的貢獻。本季度，我們的合併調整後 IBEA 成長了 60%，達到 4,000 萬美元，佔營收的 15.8%。

These results were driven by strong and market activity, solid execution on distribution program awards, an increase in MRO activity, solid performance from our OEM licensed manufacturing program, and contributions from recent acquisitions.

這些結果得益於強勁的市場活動、分銷計劃獎勵的穩健執行、MRO 活動的增加、我們的 OEM 許可製造計劃的穩健表現以及最近收購的貢獻。

Adjusted net income of $16 million and adjusted net income per diluted share of $0.78 increased 125% and 73% respectively.

調整後淨收入為 1,600 萬美元，調整後每股攤薄淨收入為 0.78 美元，分別成長 125% 和 73%。

And importantly, we ended the 1st quarter with a strong balance sheet.

重要的是，我們以強勁的資產負債表結束了第一季。

Achieving pro forma adjusted net leverage ratio of 2.2 times following the sale of the fleet business, which provides us with significant financial flexibility. I will now turn the call over to Adam to discuss the details of our financial performance.

出售車隊業務後，調整後的淨槓桿率達到 2.2 倍，這為我們提供了極大的財務彈性。現在我將把電話轉給亞當討論我們的財務表現的細節。

Thank you, John. Let us turn to slide 6 of the conference call materials where I will provide an overview of our first quarter consolidated financial performance. As a reminder, our consolidated results exclude the fleet segment, which was moved to discontinued operations following the announced sale of the business.

謝謝你，約翰。讓我們翻到電話會議資料的第 6 張投影片，我將在其中概述我們第一季的綜合財務表現。提醒一下，我們的合併業績不包括車隊部門，該部門在宣佈出售業務後已轉為停止營運。

BSE generated $256 million of revenue in the quarter, an increase of 58% over the same period in the prior year.

BSE 本季營收為 2.56 億美元，較去年同期成長 58%。

Adjusted IBEDA increased 60% to $40 million compared to the first quarter of 2024. Beginning in the first quarter of 2025 and for future and comparative prior year periods. Consolidated and segment level adjusted EEA will exclude stock-based compensation.

調整後的 IBEDA 與 2024 年第一季相比成長了 60%，達到 4,000 萬美元。從 2025 年第一季開始，並適用於未來和去年同期。合併和分部層級調整後的 EEA 將不包括股票薪酬。

Adjusted the margin was 15.8% in the quarter and approximate 30 basis point improvement over the prior year period.

調整後本季利潤率為 15.8%，比去年同期提高約 30 個基點。

Adjusted net income was $16 million and adjusted diluted earnings per share was $0.78, an increase of $125 and 73% respectively over the prior year period.

調整後淨收入為 1,600 萬美元，調整後每股攤薄收益為 0.78 美元，分別比去年同期成長 125 美元和 73%。

Now turn to slide 7, where I will review our aviation segment's record 1st quarter performance.

現在翻到第 7 張投影片，我將回顧我們航空部門第一季創紀錄的業績。

Aviation generated $256 million of revenue in the quarter, an increase of 58% over the prior year period.

本季航空業務創造了 2.56 億美元的收入，比去年同期成長 58%。

More specifically, distribution revenue increased 49% in the period, driven by the ramp of new OEM program awards, strong operational execution and market share growth, product line expansion, and contributions from the Telstrom acquisition.

更具體地說，受新 OEM 計劃獎項增加、強勁的營運執行和市場份額增長、產品線擴展以及 Telstrom 收購貢獻的推動，本季度分銷收入增長了 49%。

MRO revenue increased 76% in the quarter, driven by the expansion of new repair capabilities, share gains in the commercial and business and general aviation markets, strong and market demand, support from our new OEM authorized avionics program, and contributions from the TCI acquisition.

本季 MRO 營收成長 76%，主要得益於新維修能力的擴大、商業和公務及通用航空市場的份額增長、強勁的市場需求、我們新的 OEM 授權航空電子設備計劃的支持以及 TCI 收購的貢獻。

Excluding the impact of all recent acquisitions, organic aviation segment revenue increased by approximately 12% in the first quarter as compared to the prior year period.

不計所有近期收購的影響，第一季航空部門有機收入較去年同期成長約 12%。

Aviation adjusted IBITDA increased by 52% in the quarter to a record $43 million or 16.9% of revenue.

本季航空調整後的 IBITDA 成長了 52%，達到創紀錄的 4,300 萬美元，佔營收的 16.9%。

This increase in adjusted Eva was driven by strong execution on distribution programs, increased throughput at MRO facilities, improved pricing and product mix, solid performance from our OEM licensed manufacturing program, and contributions from recent acquisitions.

調整後 Eva 的成長得益於分銷計劃的強勁執行、MRO 設施吞吐量的提高、定價和產品組合的改善、OEM 許可製造計劃的穩健表現以及近期收購的貢獻。

Now let's turn to slide A of our presentation materials to review our aviation segment guidance for the full year 2025. It is important to note that our guidance does not assume further tariff escalation or global recession.

現在讓我們翻到簡報資料的 A 幻燈片來回顧我們對 2025 年全年航空部門的指導。值得注意的是，我們的指導並沒有假設關稅進一步升級或全球經濟衰退。

We are reaffirming our full year 2025 aviation segment revenue growth guidance range of 35% to 40%.

我們重申 2025 年全年航空部門營收成長預期範圍為 35% 至 40%。

Supporting this growth are full year revenue contributions of approximately 26-28% from both the TCI and Telstram acquisitions.

支持這一成長的是 TCI 和 Telstram 收購帶來的全年收入貢獻，約 26-28%。

In addition, we are expecting to outperform the market growth assumptions John discussed earlier with high single to low double digit organic growth for the full year, supported by market share gains, distribution program growth, and repair capability expansion.

此外，我們預計全年有機成長率將超過約翰先前討論的市場成長假設，在市佔率成長、分銷計畫成長和維修能力擴展的支持下，全年有機成長率將達到高個位數至低兩位數。

We are also reaffirming our 2025 full year aviation adjusted EBITA margin guidance range of 15.5 to 16.5% and increasing the range to 16 to 17% to include an approximate 50 basis point positive adjustment associated with the stock-based compensation add back that I referenced earlier.

我們也重申 2025 年全年航空調整後 EBITA 利潤率指引範圍為 15.5% 至 16.5%，並將該範圍提高至 16% 至 17%，以包括與我之前提到的股票薪酬加回相關的約 50 個基點的正向調整。

We continue to expect TCI and Telstram to have a near-term margin dilutive impact on aviation's margins, all set by an improvement in core legacy aviation margins driven by operating leverage, program optimization, and MRO utilization. In addition, we expect to begin realizing integration synergies in the second half of 2025. Synergy benefits will continue into 2026 until all integration activity is complete.

我們仍然預計 TCI 和 Telstram 將在短期內對航空業的利潤率產生稀釋作用，這一切都源於營運槓桿、專案優化和 MRO 利用率推動的核心傳統航空利潤率的提高。此外，我們預計將在 2025 年下半年開始實現整合綜效。綜效將持續到 2026 年，直到所有整合活動完成。

In addition to our formal guidance commentary, I want to provide several clarifying financial updates related to the recent divestiture of our plea segment.

除了我們的正式指導評論之外，我還想提供一些與我們最近剝離認罪部分相關的澄清財務更新。

Our effective tax rate is expected to be approximately 25% for the remaining three quarters of 2025.

預計 2025 年剩餘三個季度的有效稅率約為 25%。

Depreciation and amortization in total are projected to be approximately $38 to $40 million for the full year inclusive of the turbine we acquisition.

預計全年折舊和攤提總額約為 3,800 萬至 4,000 萬美元（包括我們收購的渦輪機）。

Stock-based compensation, which beginning in 11 is excluded from adjusted of a dot, is expected to be approximately $3 million per quarter for the remainder of the year, split relatively evenly between aviation and corporate.

從 11 年開始，股票薪酬不再納入調整後的數據中，預計今年剩餘時間內每季約為 300 萬美元，在航空和企業部門之間分配相對均勻。

And finally, unallocated corporate costs, which include incremental stranded costs associated with the fleet divestiture, are anticipated to total approximately $21 million for the full year, or about $14 to $15 million excluding stock-based compensation.

最後，未分配的公司成本（包括與機隊剝離相關的增量擱淺成本）預計全年總額約為 2,100 萬美元，或不包括股票薪酬約為 1,400 萬至 1,500 萬美元。

Let's move on to slide 9 to discuss our recent debt refinancing.

讓我們繼續看第 9 張投影片來討論我們最近的債務再融資。

Last week we entered into a new $700 million credit facility, including a $300 million term loan A and a $400 million revolving credit facility, both maturing in May 2030. These facilities replaced the company's previous debt facilities which were scheduled to mature in October 2026.

上週，我們達成了一項新的 7 億美元信貸協議，其中包括 3 億美元的定期貸款 A 和 4 億美元的循環信貸協議，兩者都將於 2030 年 5 月到期。這些貸款取代了該公司先前計劃於 2026 年 10 月到期的債務貸款。

Borrowing under each of the new facilities will bear interest at the secured overnight financing rate plus 175 basis points per annum, representing a 60 basis point improvement compared to the terms of the prior facilities.

每項新貸款的借款利率將按擔保隔夜融資利率加上每年 175 個基點計算，與先前的貸款條款相比提高了 60 個基點。

We are very pleased to have secured more favourable terms, including a lower interest rate and expanded borrowing capacity which will reduce our cost of capital and enhance our liquidity.

我們很高興能夠獲得更優惠的條款，包括更低的利率和擴大的借貸能力，這將降低我們的資本成本並增強我們的流動性。

Following the recent debt refinancing, the sale of the fleet business, and the acquisition of turbine wealth, we expect interest expense to be approximately $26 to $28 million for the full year, or approximately $5 million lower than our previous guidance.

在最近的債務再融資、船隊業務的出售以及渦輪機財富的收購之後，我們預計全年利息支出約為 2,600 萬至 2,800 萬美元，比我們之前的預期低約 500 萬美元。

Turning to slide 10 to review our balance sheet at the end of the first quarter, our total net debt outstanding was $459 million and cash and availability under our prior $350 million revolving credit facility was $158 million during the first quarter as planned, we used $49.5 million of free cash flow driven by strategic inventory investments to support current customer programs. This was an improvement of approximately $37 million over Q1 of last year. We are expecting to generate positive cash flow over the balance of the year.

翻到第 10 張投影片來回顧我們第一季末的資產負債表，我們的未償還淨債務總額為 4.59 億美元，而我們之前的 3.5 億美元循環信貸額度下的現金和可用資金在第一季度為 1.58 億美元，按照計劃，我們使用了由戰略庫存投資驅動的 4950 萬美元自由現金流。這比去年第一季增加了約 3700 萬美元。我們預計今年餘下時間將產生正現金流。

Our adjusted net leverage ratio pro forma for the sale of our fleet business improved to 2.2 times in the first quarter. Our long-term target for leverage remains in a 3 to 3.25 times range.

我們出售車隊業務的調整後淨槓桿率預測在第一季改善至 2.2 倍。我們的長期槓桿目標仍維持在3至3.25倍範圍內。

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

說完這些，我會把話題交還給約翰。

Thank you, Adam. I would like to conclude our prepared remarks by summarizing our 2025 priorities. First, following the sale of our fleet business, we have initiated a comprehensive review of our corporate structure and cost base to better align with our aviation focused strategy. Second, we are expanding repair capabilities and increasing operational capacity to meet growing demand and accelerate organic growth across our MRO centres of excellence. Third, we are prioritizing the integrations of TCI and Kaelstrom to drive operational efficiencies and enhance customer value.

謝謝你，亞當。我想透過總結我們的 2025 年優先事項來結束我們的準備好的發言。首先，在出售我們的機隊業務之後，我們開始全面審查我們的公司結構和成本基礎，以更好地適應我們以航空為重點的策略。其次，我們正在擴大維修能力並提高營運能力，以滿足不斷增長的需求並加速我們 MRO 卓越中心的有機成長。第三，我們優先考慮 TCI 和 Kaelstrom 的整合，以提高營運效率並提升客戶價值。

Integration planning for Turbine Weld is already underway. To lead these efforts, we have appointed a senior internal leader to oversee all integration activities and synergy capture activities across the organization. Fourth, we remain committed to capturing synergies from recent acquisitions to support margin expansion throughout this year and into 2026. Next, we are advancing the full transition of our OEM license manufacturing capabilities from Honeywell to VSE. And finally, we continue to build our organic pipeline, strengthening OEM supplier partnerships and expanding our market reach.

Turbine Weld 的整合規劃已在進行中。為了領導這些工作，我們任命了一位高階內部領導來監督整個組織的所有整合活動和協同效應捕獲活動。第四，我們將繼續致力於利用近期收購產生的綜效來支持今年乃至 2026 年的利潤率擴張。接下來，我們正在推動OEM授權製造能力從霍尼韋爾到VSE的全面轉型。最後，我們繼續建立我們的有機管道，加強與 OEM 供應商的合作夥伴關係並擴大我們的市場範圍。

Thank you to our shareholders, customers and employees for your continued support and confidence in our team. We remain focused on delivering long term value and are excited about the road ahead. Operator, we are now ready for the question and answer portion of our call.

感謝我們的股東、客戶和員工對我們團隊的持續支持和信任。我們仍然專注於提供長期價值，並對未來的道路充滿期待。接線員，我們現在可以開始通話的問答部分了。

(Operator Instruction)

（操作員指令）

The first question comes from Ken Herbert with RBC Capital Markets. Please go ahead.

第一個問題來自加拿大皇家銀行資本市場的肯‧赫伯特 (Ken Herbert)。請繼續。

Yes. Hi. Good morning, John, Adam and Michael. Good morning, Ken. Good morning. Yes, hi, good morning, John Adam and Michael.

是的。你好。早安，約翰、亞當和麥可。早安，肯。早安.是的，嗨，早安，約翰·亞當和邁克爾。

Good morning. I just wanted to first ask on the margins in the first quarter. Good performance. It looks like you are calling out more of the synergy capture in second half of the year. How should we think about the conservatism in the margin outlook and maybe opportunities there as volume growth sort of holds steady around this, give or take low double digit, high single range through the year.

早安.我只是想先詢問一下第一季的利潤率。表現良好。看起來您正在呼籲在下半年實現更多的協同效應。我們應該如何看待利潤前景中的保守性以及其中可能存在的機會，因為銷量增長將穩定在這個水平上，全年大約在兩位數的低位，個位數的高位之間。

How do we think about the margin opportunity in the back half of the year in particular?

我們如何看待今年下半年的利潤機會？

Yeah, no, thanks for the question, Ken. I would say that Q1 typically is our strongest margin period of the year. You can see that phenomenon if you look back at last year as well, and a part of that is because we're selling, lower cost inventory that we're purchasing in the prior year period in Q4 and selling it through, so you will see very strong margins in Q1.

是的，不，謝謝你的提問，肯。我想說，第一季通常是我們一年中利潤率最高的時期。如果你回顧去年，你也會看到這種現象，部分原因是因為我們在第四季度出售去年同期購買的低成本庫存，並將其售出，因此你會看到第一季的利潤率非常高。

And we also had, pretty positive mix in the quarter as well. We had some high margin sales, particularly in distribution.

本季我們的業績也相當積極。我們有一些高利潤的銷售，特別是在分銷方面。

So it was a very strong period and the acquisitions, particularly Telstrom and TCI, are performing well, as John mentioned. So, Q1, strong margins, and we will continue to see, benefits from integration synergies as we go through the course of the year, incremental benefits, and but it's early in the year and we feel good about our guidance, obviously a very strong margin performance and we'll reassess.

所以這是一個非常強勁的時期，收購，特別是 Telstrom 和 TCI，表現良好，正如約翰所提到的。因此，第一季的利潤率很高，而且我們將繼續看到，隨著全年的發展，我們將從整合協同效應中獲益，獲得增量收益，但現在還處於年初階段，我們對我們的預期感到滿意，利潤率表現顯然非常強勁，我們將重新評估。

As we as we go through the course of the year.

隨著我們度過這一年。

That's great. Thanks, Adam. And just as I think about the end market growth you outlined for business jets and commercial transport, if there is, theoretically a slowdown or we see more of a pronounced slowdown in airline capacity or a broader economic slowdown macro pressure, where do you see sensitivity in business jets relative to commercial transport, and do you feel like one market might be better positioned relative to the other as you think about sensitivity through this year to some of the macro pressures?

那太棒了。謝謝，亞當。正如我所思考的，您為商務噴射機和商業運輸概述的終端市場增長，如果理論上出現放緩，或者我們看到航空運力出現更明顯的放緩，或者出現更廣泛的經濟放緩宏觀壓力，您認為商務噴氣機相對於商業運輸的敏感度如何？當您考慮今年對某些宏觀壓力的敏感度時，您是否覺得一個市場可能比另一個市場處於更有利的位置？

Yeah, again, it's a great question. As we dive in inside of each of those markets, I think that we are obviously very engine heavy on both businesses, both markets. We see less pressure there because of the backlog and we believe that that backlog and a number of engine overhauls will continue regardless of what happens in the market because of the backlog there. I think that you're looking more on the avionic side of the house or some of the interiors or other types of repairs that you may see them either that when an airline can make a decision to kind of delay or extend. Something there. So, I think that from a true repair perspective, probably a little bit more on those commercial non-engines related work. I think you know the question just is does this flight hours hold up on both sides of the business today we feel good about our backlog, we built a little bit of conservatism compared to the market into our plan for the year, and we feel that conservatism is now more realism, so I think that our we feel good about our guidance.

是的，這又是一個很好的問題。當我們深入每個市場時，我認為我們顯然對兩個業務、兩個市場都非常重視。由於訂單積壓，我們認為那裡的壓力較小，而且我們相信，無論市場發生什麼，由於訂單積壓，積壓和大量發動機大修都將繼續進行。我認為您更關注的是飛機的航空電子設備方面或一些內部設施或其他類型的維修，您可能會看到它們，當航空公司做出延遲或延長的決定時。那裡有東西。因此，我認為從真正的維修角度來看，可能需要更多地關注那些與商業無關的引擎工作。我想你知道問題只是這個飛行小時數是否對今天的業務雙方都有利，我們對我們的積壓訂單感覺良好，我們在年度計劃中建立了與市場相比的一點保守主義，我們認為保守主義現在更加現實，所以我認為我們對我們的指導感到滿意。

Great thanks John. Congratulations on the quarter and obviously the massive restructuring. I will pass it back there.

非常感謝約翰。恭喜本季取得的成績以及大規模重組。我會把它傳回那裡。

Yeah (Operator Instructions)

是的（操作員指示）

Our next question comes from Jeff Van Sinderen with B Riley Securities. Please go ahead.

我們的下一個問題來自 B Riley Securities 的 Jeff Van Sinderen。請繼續。

Good morning. Everyone and congratulations on the on the strong metrics. Just wanted to touch a little bit more on the acceleration of integration of your recent acquisitions. Just wondering if there is any more color you can give us on some of the things you're doing there and also could the timing of completion of integration happen earlier than previously expected?

早安.恭喜各位取得如此優異的成績。我只是想稍微談談你們最近收購的加速整合情況。我只是想知道您是否可以向我們詳細介紹您在那裡所做的一些事情，以及整合完成的時間是否會比之前預期的更早？

Yeah, I think it's a good question. I would say that there's a couple of things that we are learning. We are learning where there's value in shifting some of the integrations and, where we can drive synergies faster, organic growth on a combined basis faster, or we are, enhancing some type of customer or supplier benefit. So, we are accelerating those areas. I say it still when you look at, TCI.

是的，我認為這是個好問題。我想說的是，我們正在學習一些東西。我們正在了解哪些地方需要改變一些整合方式，哪些地方可以更快地產生協同效應，哪些地方可以更快地實現合併後的有機成長，或者我們正在提高某種類型的客戶或供應商的利益。因此，我們正在加速這些領域的發展。當你看到 TCI 時，我仍然會這麼說。

The accounts from totality of the business and now the new acquisition, you're still looking at, I'd say, the earliest kind of bid next year to get all of them done, which is, about 18 months or so, which is about, what we've shared.

從整個業務的帳目到現在的新收購，你仍然在考慮，我想說，最早也要到明年才能完成所有任務，也就是大約 18 個月左右，這就是我們所分享的內容。

I don't see our ability to accelerate that further. I think it is just shifting it which can help drive better benefits like shifting priorities.

我認為我們沒有能力進一步加速這一進程。我認為，只是改變它可以幫助帶來更好的好處，例如改變優先事項。

Okay, fair enough. And then I know you, you've gotten on to some new programs and new business one, just wondering, which one of those or I guess how you would rank those or which are the most meaningful in terms of contribution and then kind of over what time frame should we expect to see a little bit of impact on the P&L from those.

好吧，夠公平。然後我知道你已經開始了一些新的項目和新的業務，只是想知道，其中哪一個，或者我猜你會如何對它們進行排名，或者哪些在貢獻方面最有意義，然後在什麼時間範圍內我們應該期望看到它們對損益表產生一點影響。

Yeah, I'd say that if you look at the guidance that we've put out for the year, that pretty much contains the organic growth kind of scaling of what we expect for 2025. Specifically the program that'll scale this year and we'll give a little bit more color into 2026, and you know expect us to talk more about organic growth opportunities in the back end of the year and how that can impact 26 modelling, but I say the 25 guidance pretty much includes everything and we've kind of scaled it for you in the guidance.

是的，我想說，如果你看一下我們今年發布的指導方針，你會發現它基本上包含了我們對 2025 年有機成長規模的預期。具體來說，該計劃將在今年擴大規模，我們將為 2026 年提供更多細節，您知道，我們預計在年底將更多地討論有機增長機會，以及這將如何影響 26 個模型，但我認為 25 個指導幾乎涵蓋了所有內容，我們已經在指導中為您進行了擴展。

Okay, fair enough, thanks very much. I will take the rest.

好的，足夠了，非常感謝。剩下的我來承擔。

Off the line.

下線了。

Thanks, appreciate the time.

謝謝，感謝您抽出時間。

(Operator Instructions)

（操作員指示）

Our next question comes from Michael Sarmoli with Trust. Please go ahead.

我們的下一個問題來自 Trust 的 Michael Sarmoli。請繼續。

Hey, good morning, guys, thanks for taking the questions. Nice.

嘿，大家早安，感謝你們回答問題。好的。

John, just as you are looking at the business, and trying to evaluate, demand trends, what is the best metric to gauge the health and obviously you've got the business general aviation side and transport. I mean, are you looking more you reference traffic, but is it. More business jet cycles? Is it more take-offs and landings? What is the better proxy? And if you do start, or I guess drawing on your experience historically, from the time we start to see capacity cuts, how long does that typically take to flow through to impact demand?

約翰，正如您所觀察的業務並試圖評估需求趨勢一樣，衡量健康狀況的最佳指標是什麼，顯然您已經了解了通用航空和運輸業務。我的意思是，您是否更專注於流量，但事實確實如此。更多的商務噴射機週期？起飛和降落的次數更多嗎？更好的代理是什麼？如果您確實開始，或者我想根據您的歷史經驗，從我們開始看到產能削減開始，通常需要多長時間才能影響需求？

Yeah, I would say slower. Let us start with the question first. I would say we will see it is slower on the side then you will on the component.

是的，我會說慢一點。我們先從問題開始吧。我想說的是，我們會看到它在側面比在組件上慢。

I think the complexity around the cycle. This is slightly different. What happened during COVID when everybody just paused and froze, it took longer to get the cycle up and running, and there is a lot of awareness in the market of that. So I don't expect to see kind of a holistic pullback.

我認為這是圍繞週期的複雜性。這略有不同。在新冠疫情期間，當每個人都暫停並凍結時，需要更長的時間才能啟動和運行整個週期，市場對此有很高的認識。所以我不希望看到整體的回調。

In terms of retraction of work because people know it's not that easy to turn the spigot back on once we turn it off. So I do expect to see some caution on some fronts, but a little bit more kind of crossing T's and dotting I's and watching the past, but I don't expect, a wholesale kind of pull back. I think with regard to data it is a great question. You know we; the traffic data is the strongest data. I think the engine side is continued overhaul jobs whether it's third parties for the OEM and understand on literally a granular level how full their shops are. Do they plan to stay full, and do they, are they seeing any kind of shifts or kind of. Pull back in demand on their front and then really which is a near term trend is looking at booking a backlog.

在撤回工作方面，因為人們知道，一旦我們關閉水龍頭，再將其重新打開就不那麼容易了。因此，我確實希望看到某些方面採取一些謹慎態度，但更多的是採取一些謹慎的態度並回顧過去，但我不希望出現全面的回調。我認為就數據而言這是一個很好的問題。你知道我們；流量數據是最強的數據。我認為引擎方面的大修工作仍在繼續，無論是第三方還是 OEM，我都能從細節上了解他們的車間有多滿。他們是否計劃保持滿載運轉，他們是否看到任何類型的轉變或某種轉變。撤回他們前面的需求，然後真正的近期趨勢是考慮預訂積壓訂單。

So, I got it.

所以，我明白了。

And we've seen a few blips here and there and then as soon as we get nervous they've got that set out a bit, but you have seen a little bit came out a little quiet kind of weeks and then and then it's come back. So, I would say we have not seen anything alarming yet, but we are keenly, watching.

我們時不時會看到一些小波動，然後，當我們感到緊張時，他們就開始有所行動，但你會看到，幾週後，情況稍微平靜了一些，然後，它又回來了。所以，我想說我們還沒有看到任何令人擔憂的事情，但我們正在密切關注。

Okay, that is fair. And then just last one maybe as it relates to cash I heard

好的，這很公平。然後最後一個可能與現金有關，我聽說

Expect positive for the rest of the year, but then you also talked about I guess making.

預計今年剩餘時間將呈現積極勢頭，但您也談到了我猜測的情況。

Some investments, specifically at recently acquired turbine weld and then just adding more capacity including PCI maybe any color there on those required investments.

一些投資，特別是最近收購的渦輪焊接，然後只是增加更多的容量，包括 PCI，也許這些所需投資中的任何顏色。

And cash in the quarter a little bit about CapEx.

本季的現金與資本支出有關。

Yeah, so like in terms of the quarter, Q1 usually is our is our larger cash usage period. If you look back at Q1 last year, I think we used about $37 million more than what we used this past quarter.

是的，就季度而言，第一季通常是我們現金使用量較大的期間。如果回顧去年第一季度，我認為我們使用的資金比上一季多了約 3700 萬美元。

And a big part of that is just the inventory purchases that we're making at the end of the year and associated payables in Q1. There were a few other aspects in Q1 of this year. We talked about having the old headquarters lease buyout, so that impacted us by around $6 million. Our cash flow was presented consolidated one, and there was some usage related to the wheeler fleet segment, in that period, and we are also, talked about building inventory to transition the H1ywell program through the end of the year. So you had a couple of those elements hitting. In the first quarter we also made a couple of strategic inventory purchases ahead of the tariff noise as well, so that had some impact. But as we move through the year, and we start lapsing the inventory buys, you will start to see working capital benefit us through the course of the year. And so, getting to the second half of this year, we expected, strong free cash flow. You saw that in Q4 of last year as well. And it, and we are, we do have, we are more CapEx heavy through the last three quarters versus 21, but that is all embedded in the kind of that I'm talking about

其中很大一部分只是我們在年底進行的庫存採購以及第一季的相關應付款項。今年第一季還有其他一些方面。我們討論了舊總部租約的收購，這對我們的影響約為 600 萬美元。我們的現金流是合併的，並且在那段時期有一些與惠勒車隊部門相關的使用，我們還討論了在年底前建立庫存以過渡 H1ywell 計劃。所以你遇到了幾個這樣的元素。在第一季度，我們還在關稅風波之前進行了幾次策略性庫存採購，因此產生了一些影響。但隨著我們一年又一年地過去，我們開始停止庫存購買，你會開始看到營運資本在一年中為我們帶來利益。因此，我們預計今年下半年將出現強勁的自由現金流。您在去年第四季也看到了這一點。而且，我們確實在過去三個季度中，資本支出比 21 個季度要大，但這一切都包含在我所說的那種

Got it. Perfect. Thanks guys. I will jump back in the queue.

知道了。完美的。謝謝大家。我將重新回到隊列中。

Thanks bye.

謝謝再見。

(Operator Instructions)

（操作員指示）

Our next question comes from Sheila Kahyaoglu with Jefferies. Please go ahead. Sheila, sorry to interrupt, but you are not audible at the moment.

我們的下一個問題來自 Jefferies 的 Sheila Kahyaoglu。請繼續。希拉，很抱歉打擾您，但目前我們無法聽到您的聲音。

The operator. Let us move to the next analyst and we will see if Sheila can get back into the queue.

操作員。讓我們轉到下一位分析師，看看 Sheila 是否可以回到佇列。

(Operator Instructions)

（操作員指示）

Certainly. Our next question comes from Louis De Palma with William Blair. Please go ahead.

當然。我們的下一個問題來自威廉·布萊爾的路易斯·德·帕爾馬。請繼續。

John, Adam, and Michael, good morning.

約翰、亞當和邁克爾，早安。

Good morning.

早安.

John, can you discuss the origin of the Eaton hydraulics deal? How did it come about? And is there opportunity to do more with Eaton? Is this just potentially a phase one?

約翰，您能談談伊頓液壓交易的起源嗎？這是怎麼發生的？是否有機會與伊頓進行更多合作？這可能只是第一階段嗎？

Yeah, thanks for the question, Louis. This is exactly aligned with what we've discussed on this OEM centric value proposition where rather than bidding on competitive deals that are in the market against most of our competitors and being in a race to the bottom, it's sitting with OEMs talking about where they have problems in the market and coming up with solutions, so looking at kind of legacy platforms where you have an OEM who you know maybe has lost a significant amount of share to unauthorized shops, MRO shops in the market, and then how do we help them capture some of that share back, having that dialogue really was the impetus for the program and then the award that was eventually given to us, we look at every OEM relationship as the beginning, so this, so we look at this as the beginning of our first. Kind of MRO relationship with them. We also have a legacy distribution relationship with them. So, it's a wonderful company with great products and we look forward to, accelerating, to other opportunities after we get this launched.

是的，謝謝你的提問，路易斯。這與我們在以 OEM 為中心的價值主張中所討論的內容完全一致，即我們不是與市場上的大多數競爭對手競標競爭性交易並參與底線競爭，而是與 OEM 坐在一起討論他們在市場上遇到的問題並提出解決方案，因此，看看那種傳統平台，您知道某個 OEM 可能已經將大量市場份額輸給了市場上的未經授權的商店、MROEM 可能已經將大量市場份額輸給了市場上的未經授權的商店、MROEM 可能已經將大量市場份額輸給了市場上的未經授權的商店、MROEM 可能已經將大量市場份額輸給了市場上的未經授權的商店、MROEM 可能已經將大量市場份額輸給了市場上的未經授權的商店、MROEM 可能已經將大量市場份額輸給了市場上的未經授權的商店、MROEM 將商店，然後我們如何幫助他們奪回部分份額，進行這種對話確實是該計劃的動力，然後最終授予我們獎項，我們將每個 OEM 關係都視為開始，因此，我們將此視為我們的第一個開始。與他們有某種 MRO 關係。我們也與他們保持著傳統的分銷關係。所以，這是一家擁有優秀產品的優秀公司，我們期待在推出產品後能夠加速其他機會。

Right, because haven't you been able to significantly expand with H1ywell and Pratt and Whitney Canada after like your original deals with those companies?

對，因為在與 H1ywell 和 Pratt and Whitney Canada 達成最初的交易之後，你們還沒有能夠大幅擴張業務嗎？

Yeah, I mean, every, every.

是的，我的意思是，每一個，每一個。

OEM is slightly different, but I'd say that if you look historically 5 years back at the business, we've been able to grow share with each of the OEMs once we get embedded with one program and they can actually see the performance of our business and the differentiation of what we can do that's different from others out there in the market.

OEM 略有不同，但我想說，如果回顧 5 年前的業務歷史，一旦我們嵌入一個項目，我們就能夠增加與每個 OEM 的份額，他們實際上可以看到我們業務的表現以及我們與市場上其他公司不同的差異化。

Absolutely.

絕對地。

Sounds good. And another one, what has been the general progress of the H1ywell fuel Control OEM solutions acquisition and Like at what stage do you think VSE would be ready to do another deal of that ilk?

聽起來不錯。另外，H1ywell 燃料控制 OEM 解決方案收購的整體進展如何？您認為 VSE 在什麼階段準備進行另一筆此類交易？

Yeah, I mean, I, I've said, repeatedly, and I will stick to it as 2026 we'll start looking at other opportunities, so there'll be nothing in 2025 and we are accelerating, very much on literally a week by week basis of getting engineering approvals and the big goal is to get the design authority shifted to us where we're officially the manufacturer of record, hope that's well before the end of the year.

是的，我的意思是，我已經反覆說過，我會堅持下去，因為到 2026 年，我們將開始尋找其他機會，所以 2025 年不會有任何進展，我們正在加速，幾乎每週都在獲得工程批准，我們的最大目標是將設計權轉移到我們身上，讓我們正式成為記錄製造商，希望這能在年底之前實現。

Sounds good. And one final one, over the past two years, and I guess this is for you, John and Adam as well, VSC has done approximately $600 million of M&A volume across your different deals and Should investors generally expect VSE to make like $300 million in acquisitions per year going forward as a benchmark, or, like, because you're larger now, do you think that like your M&A volume could be larger than that?

聽起來不錯。最後一個問題，在過去兩年中，我想這也是給你們、約翰和亞當問的，VSC 在不同的交易中完成了大約 6 億美元的併購額，投資者是否應該普遍預期 VSE 每年的收購額會達到 3 億美元作為基準，或者，因為你們現在規模更大了，你認為你們的併購額可能會更大嗎？

Yeah, I love the question and I would love to tell you I've got this, great model that will execute perfectly according to the model. I've got a great pipeline of smaller deals similar to the one that we just closed last week, of medium sized deals, and then a few, transformational deals that are out there in the market. The question is what that means in terms of timing and reality. It, we are very disciplined. I know we have done a number of deals, and it looks and the pace is real, but behind the scenes is a strong level of discipline and a number of transactions that we have exited because they're not right for the portfolio. So, it is hard because of that, it is hard to predict the timing of M&A when deals are actually actionable and then once they're actionable or is it the right fit for us once we get under the hood of the business. So, I would say it will remain part of the model, but with a very disciplined eyeing approach.

是的，我喜歡這個問題，而且我很樂意告訴你，我已經得到了這個很棒的模型，它將根據該模型完美地執行。我擁有大量小型交易，類似於我們上週剛完成的交易，還有中型交易，以及市場上的一些轉型交易。問題是，從時間和現實角度而言，這意味著什麼。它，我們非常有紀律。我知道我們已經完成了許多交易，而且看起來和步伐都是真實的，但在幕後是嚴格的紀律，我們已經退出了許多交易，因為它們不適合投資組合。因此，很難預測併購的時機，即交易何時真正可行，何時可行，或一旦我們深入了解業務，它是否適合我們。所以，我想說它仍將是模型的一部分，但會採取非常嚴謹的觀察方式。

Sounds good thanks everyone.

聽起來不錯，謝謝大家。

Thanks.

謝謝。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

Our next question comes from Josh Sullivan with benchmark. Please go ahead.

我們的下一個問題來自基準的 Josh Sullivan。請繼續。

Good morning, just on the component repair capacity with TCI you mentioned, what, what's the timeline to bringing that online and then what's the potential incremental there?

早安，就您提到的 TCI 的組件維修能力而言，實現這一目標的時間表是什麼？潛在的增量是多少？

I'm sorry, the component repair.

抱歉，零件維修。

What.

什麼。

I missed the question.

我錯過了這個問題。

The component repair capacity you mentioned in the prepared the capacity.

您在準備容量中提到的組件修復容量。

Yeah, I mean, I say it's in phases, so we're really dealing with the businesses going through the business together with the leaders to say, okay, these are all the capabilities we have, where do we need to go deeper and expand and improve turn time so that we can increase capacity to support the market. So, some of it is equipment.

是的，我的意思是，我說這是分階段進行的，所以我們實際上是在與領導者一起處理業務，說，好吧，這些都是我們擁有的能力，我們需要在哪些方面更深入、擴展和改善週轉時間，以便我們能夠增加支持市場的能力。所以，其中一些是設備。

Some of it is labour, some of it is additional shifts using the same equipment, 2 or 3 times longer in a day than we are using today. So, I would say we've already started, and the business is up about 30% since we have owned it, and we have already started down that journey. So, I would say it is evolutionary, not kind of revolutionary. It will not just happen all at once. It will just happen in phases.

有些是勞動力，有些是使用相同設備的額外輪班，每天的工作時間比我們現在使用的時間長 2 到 3 倍。所以我想說我們已經開始了，自從我們擁有它以來，業務增長了約 30%，我們已經開始了這段旅程。所以，我想說它是進化的，而不是革命性的。它不會一下子就發生。它將分階段發生。

Got it. And then you mentioned that key term, turn times, and as you guys get deeper into, the commercial engine market, how do you play into that conversation, given all these capabilities you're bringing in, and clearly, a focal point for the industry is on improving turn time, how is VSCC a part of that story?

知道了。然後您提到了關鍵術語“轉彎時間”，隨著您對商用發動機市場的深入了解，考慮到您引入的所有這些功能，您如何參與到這個話題中，顯然，行業的焦點是提高轉彎時間，VSCC 是如何成為這個故事的一部分的？

Yeah, I mean, at the end of the day, it's everything in our opinion starts with the turn time first and then the cost second, and you've got to be ahead of the market in terms of turn times. So, it depends on the on the business whether we are supporting the end user directly or we are supporting a major engine overhaul shop. So, the engine overhaul shop, we are really doing backup work and we need to be in a position where we are faster and cheaper than they are. And so turn time and cost of repair is a critical factor for us being awarded the business and us maintaining and growing that business and we feel we've done an outstanding job of that and continue to have term time improvement, but I feel like we're, we we're at or ahead of the industry in terms of turn times. With and I say it's not that different with regard to the end user work being very candid since I've been in the business, we've shifted the portfolio a bit to where we were maybe servicing very good portfolio of capabilities, but our turn times weren't good and our costs weren't good because we didn't have good cost basis on product. We just weren't competitive, so we've narrowed the scope of our of our MRO shops over the last 5 years to places where we know our turn times are market leading and we know that because of other efficiencies and other supply chain avenues that we pursue, we're able to offer competitive pricing as well. So that is a huge part of the model. That is how we look at it all the time.

是的，我的意思是，我們認為，歸根結底，一切都首先從週轉時間開始，然後是成本，而且你必須在周轉時間方面領先於市場。因此，這取決於業務，我們是直接支援最終用戶還是支援大型引擎大修店。因此，對於引擎大修車間來說，我們確實在做備用工作，我們需要比他們更快、更便宜。因此，週轉時間和維修成本是我們獲得業務以及維持和發展業務的關鍵因素，我們認為我們在這方面做得非常出色，並且將繼續在時間上取得進步，但我覺得我們在週轉時間方面已經達到或領先於行業水平。坦白說，自從我從事這個行業以來，最終用戶的工作情況並沒有什麼不同，我們已經將產品組合稍微調整了一下，也許我們可以提供非常好的功能組合服務，但我們的周轉時間並不好，成本也不好，因為我們沒有良好的產品成本基礎。我們只是缺乏競爭力，所以在過去 5 年中，我們將 MRO 商店的範圍縮小到我們知道我們的周轉時間處於市場領先地位的地方，並且我們知道，由於我們追求的其他效率和其他供應鏈途徑，我們也能夠提供具有競爭力的價格。所以這是模型的重要組成部分。我們始終都是這樣看待這個問題的。

Great, thank you for the time.

太好了，謝謝你抽出時間。

Thanks.

謝謝。

The next question comes from Ellen Page with Jeffrey. Please go ahead.

下一個問題來自傑弗裡的艾倫·佩吉 (Ellen Page)。請繼續。

Guys. Thanks for the question. Maybe just to start, you called out 12% organic growth for the overall aviation business, but can you help us understand the trends in MRO versus distribution and if there is any impact from timing at the USM business within KELSTROM.

夥計們。謝謝你的提問。也許只是開始，您提到整個航空業務的有機成長率為 12%，但您能否幫助我們了解 MRO 與分銷的趨勢，以及 KELSTROM 內 USM 業務的時間安排是否會產生影響。

Yeah, I mean, I think we let me answer the USM question first. We have been pretty clear that, USM is part of everyone's model and there is a place for it inside of our business, but it is a much more strategic place. So, from a growth perspective, expect that to be always on the lower end of growth for us, and that is it is pretty much where we are today. We are.

是的，我的意思是，我想我們先讓我回答 USM 的問題。我們已經非常清楚，USM 是每個人模型的一部分，並且在我們的業務中佔有一席之地，但它是一個更具策略性的位置。因此，從成長角度來看，預計我們的成長將始終處於低端，而這幾乎就是我們今天的狀況。是的。

We're finding the right place for that business as we integrate it and there will be a place for it. It is just definitely on a lower growth side as we look at the two growth areas. I know yeah.

我們正在為這項業務尋找合適的位置，我們將對其進行整合，並且會有一個適合它的位置。當我們觀察這兩個成長領域時，它肯定處於較低的成長水準。我知道是的。

It was a little bit skewed towards distribution this quarter, but it's normal ebbs and flows in the quarter, so nothing to.

本季有點偏向分銷，但這是本季的正常起伏，所以沒什麼。

Really take a look, yeah, because I mean this, I mean I could share a little color this quarter. I think MRO is a little ahead, but yeah, it's not, it's not materially different one way or another.

真的看一看，是的，因為我的意思是，我的意思是我可以在這個季度分享一點顏色。我認為 MRO 有點領先，但是，是的，它不是，無論如何它都沒有實質性的不同。

On the organic growth.

關於有機成長。

That's helpful and within your integration process for year 1 and 2, how do you think about cost versus revenue synergies for the 3 deals that you've done in the last 12 months?

這很有幫助，在第一年和第二年的整合過程中，您如何看待過去 12 個月內完成的 3 筆交易的成本與收入協同效應？

Yeah, the answer, is just yes. I mean, meaning that synergies, encompass a little bit of everything, but I think it also each acquisition brings something different with how we look at synergies. So let us talk about TCI first. That business is not a cost takeout business. That business is all about how we can help a business that is an A plus asset with an A plus team and how do we help them expand capacity and take advantage of a growing market. So that business we have grown 30%. Throughout the year, as you can imagine, there is an amount of SGNA that stays flat during that period and then there is, some additional labour that comes in. So SGNA is the percentage of sales does decline, which is going to drive some additional margin in that business. And then we will look at price and product cost margins to assist that business as well. So there is no kind of cost out in the business like that. In other businesses like in the Kelstrom business, there were some leaders who have left the business. I know, and we, because we have a large organization, there is no need. To replace those leaders, and we had an ability to have some cost out in the first and into the second quarter to drive some synergies up front. So, each deal will look different. I would say Turbin we will look more like TCI. It is a very similar business just supporting business in general aviation, OEMs and very similarly, it is a capacity constrained market where all we need to do is help them give them, an aperture for growth. So each asset kind of looks different on our synergy plan.

是的，答案是肯定的。我的意思是，綜效涵蓋了方方面面，但我認為每次收購都會帶來一些不同的東西，讓我們對綜效的看法有所不同。那我們先來談談 TCI。那個生意不是成本外送生意。這項業務的關鍵在於我們如何幫助擁有 A+ 資產和 A+ 團隊的企業，以及如何幫助他們擴大產能並利用不斷成長的市場。因此我們的業務成長了 30%。正如您所想像的，在全年中，SGNA 的數量會保持平穩，並且會有一些額外的勞動力進入。因此，SGNA 的銷售額百分比確實會下降，這將為該業務帶來一些額外的利潤。然後，我們將研究價格和產品成本利潤率來幫助該業務。因此，業務中不存在這樣的成本。在其他企業，例如 Kelstrom 企業，有些領導者已經離開了企業。我知道，而且我們，因為我們有一個龐大的組織，所以沒有必要。為了替換這些領導者，我們有能力在第一季和第二季降低一些成本，以推動一些前期的協同效應。因此，每筆交易看起來都會有所不同。我想說 Turbin，我們看起來更像 TCI。這是一項非常相似的業務，僅支援通用航空、原始設備製造商的業務，而且非常相似，這是一個容量受限的市場，我們需要做的就是幫助他們提供成長的機會。因此，在我們的協同計劃中，每種資產看起來都不同。

Great thanks I'll leave it there.

非常感謝，我會把它留在那裡。

Great thanks.

非常感謝。

Thank you. (Operator Instructions)

謝謝。（操作員指示）

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

我們的問答環節到此結束。我想將會議交還給約翰·庫莫 (John Cuomo) 做最後發言。

Yes, I just want to say thank you everybody for it's been a tremendous journey getting through our first kind of critical chapter at VSE, which is really transforming the business to a pure play aviation aftermarket business, and we're excited for the next chapter ahead and for all of you to be part of it. Have a great day.

是的，我只想對大家說謝謝，這是一段艱辛的旅程，我們度過了 VSE 的第一個關鍵篇章，這實際上是將業務轉變為純粹的航空售後市場業務，我們對即將到來的下一個篇章感到興奮，也為你們所有人成為其中的一部分而感到興奮。祝你有美好的一天。

Thank you.

謝謝。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation. You may now disconnect.

感謝您參加今天的演講。您現在可以斷開連線。