Yunhong Green CTI Ltd (YHGJ) 2023 Q4 法說會逐字稿

Good day, and welcome to the Yunhong Green CTI. first, fourth quarter and year ended December 2023 earnings conference call.(Operator Instructions)

大家好，歡迎來到運鴻綠色CTI。截至 2023 年 12 月的第一季、第四季及年度收益電話會議。

This conference is being recorded today, February 2220 20 for the earnings press release accompanying this conference call was issued last night on the call today is young screen CTI.'s Chief Executive Officer, Frank Cesario, as well as Chief Operating Officer, John Schwarz.

本次會議於今天（2220 年 2 月 20 日）錄製，昨晚在年輕螢幕 CTI 電話會議上發布了伴隨本次電話會議發布的收益新聞稿。

Before we begin, we would want to note that you should read the Forward-Looking Statements in the Company's earnings press release.

在開始之前，我們想指出，您應該閱讀公司收益新聞稿中的前瞻性陳述。

During today's call, management will make certain predictive statements that reflect its current views about future performance and financial results, company faces these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties.

在今天的電話會議中，管理層將做出某些預測性陳述，反映其當前對未來業績和財務業績的看法，公司面臨這些陳述以及對受風險和不確定性影響的未來事件的某些假設和預期。

The Company's Form 10-K for the year ended December 31st, 2022 lists some of the most important risk factors that could cause actual results to differ from its predictions.

該公司截至 2022 年 12 月 31 日的年度 10-K 表格列出了一些可能導致實際結果與其預測不同的最重要的風險因素。

Please note that the Company's earnings press release makes reference to adjusted EBITDA, a non-GAAP financial measure, the Company views adjusted EBITDA as an operating performance measure. And as such, the Company believes that the GAAP financial measure most directly comparable to its net income or loss.

請注意，本公司的收益新聞稿參考了調整後的 EBITDA（一項非 GAAP 財務指標），本公司將調整後的 EBITDA 視為一項經營績效指標。因此，本公司認為公認會計準則財務指標與其淨收入或淨虧損最直接可比。

For further information, please refer to the earnings press release and the Company's periodic filings with the Securities and Exchange Commission. At this time, I would like to turn the call over to Frank Cesario, Chief Executive Officer of young hungry CTI. Sir, please go ahead.

欲了解更多信息，請參閱收益新聞稿以及公司向美國證券交易委員會提交的定期文件。現在，我想把電話轉給年輕飢餓 CTI 執行長 Frank Cesario。先生，請繼續。

Greg, you're drilling or Thank you to everyone joining us today. And we finished the year with a strong Valentine's Day shipments now already knee-deep in production for Mother's Day, Father's Day and graduation season.

格雷格，你正在鑽探，謝謝今天加入我們的所有人。我們以強勁的情人節出貨量結束了這一年，現在已經開始為母親節、父親節和畢業季生產。

Our fourth quarter revenue beat the prior year by $1.2 million as we saw improvement in foil balloons, commercial films and balloon inspired guess one trend we've identified is a shift from everyday business to seasonal business.

我們第四季的收入比前一年增加了120 萬美元，因為我們看到箔氣球、商業電影和氣球的改善，激發了我們的猜測，我們發現的一個趨勢是從日常業務向季節性業務的轉變。

That's good at this point during the year and some work we will work on before entering the second half, particularly as we look to add new revenue streams to our offering year-to-date sales were $17.8 million in 2023 compared to $18 million during 2022. I'm pleased how we fight back from a third quarter deficit on this metric and that shows up in our margin performance.

今年目前的情況很好，我們將在進入下半年之前進行一些工作，特別是當我們希望為我們的產品增加新的收入來源時，2023 年迄今為止的銷售額為1,780 萬美元，而2022 年為1,800 萬美元。我很高興我們如何扭轉第三季在這項指標上的赤字，這也反映在我們的利潤率表現上。

Gross margins improved to 18% in 2023 versus 17% the prior year. And that was driven by a strong fourth quarter. More appropriate revenues allowed us to post a 24% gross margin in the fourth quarter of 2023 versus 19% in the prior year. Helium pricing continues to have a slightly negative impact on our marketplace, but much less so than the prior 18 months.

2023 年毛利率提高至 18%，而前一年為 17%。這是由強勁的第四季推動的。更適當的收入使我們能夠在 2023 年第四季實現 24% 的毛利率，而上一年為 19%。氦氣定價繼續對我們的市場產生輕微的負面影響，但比前 18 個月小得多。

This has been an issue every four years or so and should improve in the what Russian supply becomes available for now is something we watch. We always own our results. And last year we said they simply were not good enough with all the challenges.

這大約每四年就會出現一個問題，並且應該會隨著我們目前觀察到的俄羅斯供應情況而有所改善。我們始終擁有我們的結果。去年我們說他們根本不足以應付所有挑戰。

I'm pleased to have reported a full year 2023 with a $1.2 million improvement in net income and a $1 million improvement in adjusted EBITDA with earnings per share going from a $0.22 loss to a $0.01 loss. With that said, we are nowhere near where we need to be. We continue to push the envelope on operating efficiently and look to add new revenue streams.

我很高興地報告 2023 年全年淨利潤增加 120 萬美元，調整後 EBITDA 增加 100 萬美元，每股收益從虧損 0.22 美元變為虧損 0.01 美元。話雖如此，我們離我們需要達到的目標還很遠。我們繼續挑戰高效營運的極限，並尋求增加新的收入來源。

Before we talk about our activity in Dubai, China, I would ask our Chief Operating Officer, John Schwan, to share some of the high-level actions we've implemented that led to a much improved financial performance in 2023. John?

在談論我們在中國杜拜的活動之前，我想請我們的營運長 John Schwan 分享我們已實施的一些高層行動，這些行動使 2023 年的財務業績大幅改善。約翰？

Thank you, Frank, and hello, everyone. We have spoken before about the benefits of automation.

謝謝弗蘭克，大家好。我們之前已經談過自動化的好處。

We now have two manufacturing lines featuring robotic arm, and it should be no surprise that they are consistently our top performing lines over and above the reduction in labor costs we have started the process to have our third line operational during 2024.

我們現在擁有兩條配備機械手臂的生產線，毫無疑問，除了勞動成本的降低之外，它們一直是我們表現最好的生產線，我們已經開始在 2024 年讓第三條生產線投入運作。

Results are also driven by strong vendor partner relationships, along with processes and people who know what they should be doing and have the experience and culture to raise issues and opportunities as they see. It is an important operating environment that we have developed over the years and it has delivered an incredibly positive impact to the organization as we continue to push the bounds of efficiency.

結果還取決於強大的供應商合作夥伴關係，以及知道自己應該做什麼並擁有提出問題和機會的經驗和文化的流程和人員。這是我們多年來開發的一個重要的營運環境，隨著我們不斷突破效率的界限，它為組織帶來了令人難以置信的正面影響。

Frank Vojo does talk about the recent bit of news related to our purchasing of a manufacturing facility and who by China. This initiative was not taken lightly and was concluded after careful consideration internally and with our partners in China who have significant resources and experience, especially with new emerging growth opportunities.

Frank Vojo 確實談到了最近有關我們購買製造設施以及中國購買的一些新聞。這項舉措絕非輕率之舉，是經過內部以及我們在中國的合作夥伴的仔細考慮後得出的，他們擁有豐富的資源和經驗，特別是新出現的增長機會。

As a result of this strategic initiative, we now have more direct manufacturing facilities that can be used in the compostable materials business.

由於這項策略性舉措，我們現在擁有更多可用於可堆肥材料業務的直接製造設施。

We also have a stronger connection with the rest of the Une home family of companies. We believe this relationship to what should offer dividends in both our traditional business areas as well as the new materials space by issuing up to 5 million shares of our common stock.

我們也與 Une home 系列公司的其他公司建立了更緊密的聯繫。我們相信，透過發行最多 500 萬股普通股，這種關係將為我們的傳統業務領域和新材料領域帶來紅利。

We looked to acquire a fully equipped facility with working capital, and we can avail ourselves to exponentially more people who can support and grow our business. We and our broad broader group continue to move through the process of developing and bringing to market our patented compost if you'd like to ask a question, Jenny will open the Q&A line. Thank you.

我們希望獲得一個設備齊全的設施和營運資金，我們可以利用更多的人來支持和發展我們的業務。我們和我們更廣泛的團隊將繼續開發我們的專利堆肥並將其推向市場，如果您想問問題，Jenny 將打開問答熱線。謝謝。

Thank you very much, Frank. We are now opening the floor for questions. (Operator Instructions)

非常感謝你，弗蘭克。我們現在開始提問。（操作員說明）

Okay, Frank, I'm not seeing anyone in the queue at the moment, and I can certainly let you know if someone jumps in. I can hand back to you for any further comments.

好的，弗蘭克，目前我沒有看到有人在排隊，如果有人插隊我當然可以通知你。如果有任何進一步的意見，我可以回饋給您。

You just tell us where that goes. But I appreciate the look it. We're happy to summarize what you can all read in the press release. We know people listen to us and ask us questions later, which is great. We do appreciate your interest in our company, and we look forward to the story that we can talking about 2024. And with that, I wish everyone a good day.

您只需告訴我們它會去哪裡。但我很欣賞它的外觀。我們很高興總結大家可以在新聞稿中閱讀到的內容。我們知道人們會傾聽我們的意見，然後再向我們提問，這很棒。我們非常感謝您對我們公司的興趣，我們期待著 2024 年我們可以談論的故事。在此，我祝福大家有美好的一天。

Thank you very much, Frank, and thank you, Johnna. This does conclude today's conference. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

非常感謝你，法蘭克，也謝謝你，約翰娜。今天的會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。