領先汽車配件 (AAP) 2023 Q4 法說會逐字稿

Welcome to the Advance Auto Parts Fourth Quarter and Full Year 2023 Conference Call.

歡迎參加 Advance Auto Parts 2023 年第四季和全年電話會議。

Before we begin, Elisabeth Eisleben, Senior Vice President, Communications and Investor Relations, will make a brief statement concerning forward-looking statements that will be discussed on this call.

在我們開始之前，傳播和投資者關係高級副總裁 Elisabeth Eisleben 將就本次電話會議將討論的前瞻性陳述發表簡短聲明。

Good morning, and thank you for joining us to discuss our Q4 and full year 2023 results.

早安，感謝您加入我們討論我們的第四季和 2023 年全年業績。

I'm joined today by Shane O'Kelly, our President and Chief Executive Officer; and Ryan Grimsland, our Executive Vice President and Chief Financial Officer.

今天我們的總裁兼執行長 Shane O'Kelly 也加入了我的行列。以及我們的執行副總裁兼財務長 Ryan Grimsland。

Following Shane and Ryan's prepared remarks, we will turn our attention to answering your questions.

在肖恩和瑞安準備好的發言之後，我們將集中精力回答你們的問題。

Before we begin, please be advised that remarks today will contain forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including, but not limited to, statements regarding our ongoing strategic and operational review, initiatives, plans, projections and future performance. Actual results could differ materially from those projected or implied by the forward-looking statements. Additional information about forward-looking statements and factors that could cause actual results to differ can be found under the captions, Forward-looking Statements, in our earnings release, and risk factors in our most recent Form 10-K and subsequent filings made with the commission.

在我們開始之前，請注意，今天的言論將包含前瞻性陳述。除歷史事實陳述外的所有陳述均為前瞻性陳述，包括但不限於有關我們正在進行的策略和營運審查、舉措、計劃、預測和未來業績的陳述。實際結果可能與前瞻性陳述中預測或暗示的結果有重大差異。有關前瞻性陳述和可能導致實際結果不同的因素的更多信息，請參見我們的收益發布中的前瞻性陳述標題以及我們最近的 10-K 表格和隨後向公司提交的文件中的風險因素。委員會。

Now let me turn the call over to Shane O'Kelly.

現在讓我把電話轉給肖恩·奧凱利。

Thanks, Elisabeth, and good morning. Before we dive into the details of the quarter, I want to take a moment to thank the entire Advance team for their dedication and continued focus on serving our customers throughout 2023. I continue to travel coast-to-coast during the past few months, meeting customers, meeting team members from our stores and team members from our distribution centers. I remain impressed with our team's strong work ethic and their unwavering commitment to helping our customers.

謝謝，伊莉莎白，早安。在我們深入了解本季度的細節之前，我想花點時間感謝整個Advance 團隊的奉獻精神以及在2023 年繼續專注於為我們的客戶提供服務。在過去的幾個月裡，我繼續從東海岸到西海岸旅行，會見客戶、會見我們商店的團隊成員和配送中心的團隊成員。我們團隊強烈的職業道德和他們對幫助客戶的堅定承諾給我留下了深刻的印象。

I want to introduce today our new Chief Financial Officer, Ryan Grimsland. We're pleased to have Ryan on the Advance team, and he brings vast experience in the omnichannel retail space, serving both DIY and professional customers. His deep knowledge in finance, strategy and transformation will undoubtedly help lead our company forward.

今天我想介紹一下我們的新財務長 Ryan Grimsland。我們很高興 Ryan 加入 Advance 團隊，他在全通路零售領域帶來了豐富的經驗，為 DIY 和專業客戶提供服務。他在財務、策略和轉型方面的深厚知識無疑將有助於帶領我們公司前進。

Now, onto the decisive actions we have been taking to turn around the business. We have continued to act with a sense of urgency to stabilize the business and position the company to return to profitable growth. All of the actions we are taking are geared to help us focus on the fundamentals of selling auto parts, and we will eliminate activities that distract us from that goal.

現在，談談我們為扭轉業務而採取的果斷行動。我們繼續以緊迫感採取行動，穩定業務並使公司恢復獲利成長。我們正在採取的所有行動都是為了幫助我們專注於銷售汽車零件的基本原則，我們將消除那些分散我們對這一目標的注意力的活動。

Let me be clear. Our results today are disappointing and not at all what I'm accustomed to delivering. We have spent the last several months analyzing how Advance got here, and we now have a better understanding of the work required to change our trajectory.

讓我說清楚。今天我們的結果令人失望，完全不是我習慣的結果。在過去的幾個月裡，我們一直在分析 Advance 是如何走到這一步的，現在我們對改變我們的發展軌跡所需的工作有了更好的了解。

It's important to note that in recent periods, including this one, there have been several atypical items contributing to our poor financial performance. Through disciplined execution and accountability, we will tighten the fundamentals of our business, which will help reduce and then eliminate elements that introduce noise to our core performance.

值得注意的是，最近一段時期，包括這段時期，有幾個非典型因素導致了我們糟糕的財務表現。透過嚴格的執行和問責制，我們將加強我們業務的基礎，這將有助於減少並消除為我們的核心績效帶來噪音的因素。

On our last quarter's call, we discussed decisive actions. Let's take you through those actions as well as update you on new activities the company is taking today. Number one, initiating the sales processes for Worldpac and our Canadian business.

在上個季度的電話會議上，我們討論了果斷行動。讓我們向您介紹這些行動，並向您介紹公司今天正在採取的新活動的最新情況。第一，啟動 Worldpac 和我們加拿大業務的銷售流程。

Number two, significantly reducing our costs to remain competitive while investing a portion of those savings back into the front line.

第二，大幅降低我們保持競爭力的成本，同時將部分省下的資金投入第一線。

Number three, making organizational changes to position us for success. And now introducing 2 additional decisive actions.

第三，進行組織變革以使我們成功。現在再介紹 2 項決定性行動。

Number four, assessing the productivity of all assets, including Carquest independents.

第四，評估所有資產的生產力，包括 Carquest 獨立資產。

And number five, the consolidation of our supply chain.

第五，我們供應鏈的整合。

Let's take a moment and further discuss each of these decisive actions. First, we initiated separate sales processes for Worldpac and Canada. We are very pleased with the interest we have received in both businesses. The Worldpac process is underway, and we are actively engaging with potential buyers. We currently expect to conclude the Worldpac process during our second quarter and look forward to sharing more information when that occurs.

讓我們花點時間進一步討論這些決定性的行動。首先，我們為 Worldpac 和加拿大啟動了單獨的銷售流程。我們對這兩項業務受到的關注感到非常高興。 Worldpac 流程正在進行中，我們正在積極與潛在買家接洽。目前，我們預計將在第二季完成 Worldpac 流程，並期待屆時將分享更多資訊。

As it relates to the Canadian process, this is intentionally sequenced behind Worldpac, and we have begun the internal work to explore separating the business.

由於它與加拿大流程相關，因此有意將其排在 Worldpac 後面，我們已經開始內部工作以探索業務分離。

Next, as I discussed in our Q3 call, the company's costs have outpaced our sales growth during the past several years, which warranted changes in how we operate. In Q4, we implemented significant cost reductions by eliminating roles and initiatives that did not support our commitment to improve the fundamentals of the business, and we will realize at least $150 million of SG&A savings in 2024. We're focused on our frontline team members and are reinvesting approximately $50 million of those SG&A dollars to increase wages, bonus programs, and as well enhancing our training. This represents approximately half of the dollars planned for 2024 for our frontline, with additional funding coming from sunsetting previous programs.

接下來，正如我在第三季電話會議中所討論的那樣，過去幾年公司的成本成長速度超過了銷售成長速度，這需要改變我們的營運方式。在第四季度，我們透過消除不支持我們改善業務基本面承諾的角色和計劃，實現了顯著的成本削減，到 2024 年，我們將實現至少 1.5 億美元的 SG&A 節省。我們專注於一線團隊成員並將其中約5000 萬美元的SG&A 美元再投資，用於增加工資、獎金計劃以及加強我們的培訓。這大約相當於 2024 年第一線計畫資金的一半，額外資金來自於取消先前的專案。

While we continue rolling out these investments over the next several months, we note that we are already seeing year-over-year improvement in turnover reduction of key frontline roles.

雖然我們在接下來的幾個月中繼續推出這些投資，但我們注意到，我們已經看到關鍵第一線職位的人員流動率減少了同比有所改善。

In addition to the Q4 cost reductions, we are now launching an additional initiative focused on our indirect spend, with the goal of eliminating a minimum of $50 million on an annualized basis. We will continue to be prudent with our expense structure and are committed to building a cost-conscious culture.

除了第四季的成本削減之外，我們現在還啟動了一項針對間接支出的額外計劃，目標是每年減少至少 5,000 萬美元。我們將繼續審慎對待我們的費用結構，並致力於建立成本意識文化。

Going forward, in every operational decision we make, if it isn't core to the business to help our frontline team members and service our customers, it's off the table.

展望未來，在我們所做的每一個營運決策中，如果幫助第一線團隊成員和服務客戶不是業務的核心，那就不可能了。

In terms of the third decisive action, I mentioned on our last call that we had streamlined our management structure and reorganized parts of my leadership team to drive collaboration and accountability. These changes further simplify our structure and they upgrade talent in key positions to allow us to drive improvements in critical business areas.

關於第三個決定性行動，我在上次電話會議中提到，我們已經精簡了管理結構，並重組了部分領導團隊，以推動協作和問責。這些變化進一步簡化了我們的結構，並提升了關鍵職位的人才，使我們能夠推動關鍵業務領域的改進。

In addition to Ryan joining us as the CFO, another example of outstanding talent that we've recently hired is Elizabeth Dreyer, who joined the Advance team as our Chief Accounting Officer and Controller. Elizabeth brings a robust track record of building and leading high-performing accounting teams, and I'm confident she and Ryan will work together to create a high-performing finance function.

除了 Ryan 加入我們擔任財務長之外，我們最近聘請的另一個傑出人才是 Elizabeth Dreyer，她加入 Advance 團隊擔任我們的首席會計官和財務總監。伊莉莎白在建立和領導高績效會計團隊方面擁有良好的記錄，我相信她和瑞安將共同努力創建高績效的財務職能部門。

We also recently hired a new Chief Data Officer, Kunal Das, to significantly improve the quality, processing and utilization of our data. In addition, we've also hired a new procurement leader, who will help deliver against the indirect cost savings that I just mentioned. We've also made a number of changes within our organizational structure to better align certain departments with our strategic goals. For example, pricing is now part of merchandising. In addition, we have consolidated our real estate function from across multiple parts of the company to form a single enterprise-wide real estate team reporting directly to me.

我們最近也聘請了一位新的首席資料長 Kunal Das，以顯著提高資料的品質、處理和利用率。此外，我們還聘請了一位新的採購主管，他將協助實現我剛才提到的間接成本節約。我們也在組織結構中進行了一些改變，以更好地使某些部門與我們的策略目標保持一致。例如，定價現在是銷售的一部分。此外，我們也整合了公司多個部門的房地產職能，形成了一個直接向我報告的整個企業範圍的房地產團隊。

Further, our merchandising and inventory teams now directly report to me. They have been working diligently on the implementation of our new core merchandising and inventory system. We expect to complete the remainder of the vendor and SKU transitions to the new system this year. That effort involves transforming our current ordering and fulfillment processes, enabling us to move away from antiquated systems to more data-driven capabilities.

此外，我們的銷售和庫存團隊現在直接向我報告。他們一直在努力實施我們新的核心銷售和庫存系統。我們預計今年將完成剩餘的供應商和 SKU 向新系統的過渡。這項工作涉及改變我們目前的訂購和履行流程，使我們能夠從過時的系統轉向更多數據驅動的功能。

The fourth decisive action, which we are introducing today is improving the productivity of all assets in the company, including company stores and independently owned Carquest locations. While we opened 61 stores in 2023, we do not plan to open as many this year as we focus on improving our existing store operations and driving profitable growth.

我們今天推出的第四項決定性行動是提高公司所有資產的生產力，包括公司商店和獨立擁有的 Carquest 地點。雖然我們在 2023 年開設了 61 家門市，但我們今年不打算開設那麼多門市，因為我們專注於改善現有門市營運並推動利潤成長。

In an effort to optimize our Carquest independent business, we recently terminated our agreements with over 100 independently owned Carquest stores, which will help improve the overall profitability of our Carquest independent program.

為了優化我們的 Carquest 獨立業務，我們最近終止了與 100 多家獨立擁有的 Carquest 商店的協議，這將有助於提高我們 Carquest 獨立專案的整體獲利能力。

In addition to improved store productivity, our IT department has made notable improvements in the reliability of our stores' POS systems. The improvement in our network and store system resiliency is allowing our frontline to better serve our customers.

除了提高商店生產力外，我們的 IT 部門還顯著提高了商店 POS 系統的可靠性。我們的網路和商店系統彈性的提高使我們的前線能夠更好地為客戶服務。

Lastly, we are announcing our fifth decisive action, which is the consolidation of our supply chain to a single unified network. We know that our current network is inefficient and needs substantial work to improve our cost structure and inventory availability. We have long served our blended box stores via 2 distinct DC networks, 1 from the legacy Carquest business and 1 from Advance. The first step is completing the implementation of our warehouse management system, or WMS, across all of our large DCs. With only 3 DCs remaining, we will complete this by the end of the year.

最後，我們宣布第五項決定性行動，即將我們的供應鏈整合為一個統一的網路。我們知道，我們目前的網路效率低下，需要大量工作來改善我們的成本結構和庫存可用性。長期以來，我們一直透過 2 個不同的 DC 網路為我們的混合盒裝商店提供服務，其中 1 個來自傳統的 Carquest 業務，1 個來自 Advance。第一步是在所有大型配送中心完成倉庫管理系統 (WMS) 的實施。只剩下 3 個 DC，我們將在今年年底前完成這項工作。

Step 2, which we are conducting in parallel with Step 1, is the conversion of smaller legacy DCs from functioning as a replenishment node to operating as a market hub. With 38 DCs in our Advance and Carquest network today, we view the smaller DCs as valuable assets that can be leveraged more efficiently as market hubs, where we will forward deploy the right inventory closer to the customer.

我們與步驟 1 並行的步驟 2 是將較小的傳統 DC 從充當補給節點轉變為充當市場中心。如今，我們的Advance 和Carquest 網路中擁有38 個配送中心，我們將較小的配送中心視為寶貴的資產，可以更有效地利用它們作為市場中心，我們將在更靠近客戶的地方部署正確的庫存。

We have recently started our first DC conversion to become a market hub, and we will utilize our learnings to scale this key initiative across the network. By leveraging our current DCs, we can move faster and more cost effectively than if we greenfielded a new network.

我們最近開始了第一次 DC 轉換，以成為市場中心，我們將利用我們的經驗在整個網路中擴展這一關鍵舉措。透過利用我們現有的資料中心，我們可以比新建一個新網路更快、更有經濟地採取行動。

Importantly, once we complete this work, we will be able to order product into fewer DCs, which will help reduce costs and improve inventory productivity. We look forward to sharing more on all of these actions as we continue to improve our blended block strategy.

重要的是，一旦我們完成這項工作，我們將能夠向更少的配送中心訂購產品，這將有助於降低成本並提高庫存生產力。隨著我們繼續改進我們的混合區塊策略，我們期待分享更多關於所有這些行動的資訊。

Before I turn it over to Ryan, the last topic I want to touch on is the macro environment. The key drivers of this industry remain strong. These include the average age of vehicles, which continues to increase and is now at 12.5 years, as well as miles driven, both of which are projected to further increase this year.

在我把它交給瑞安之前，我想談的最後一個主題是宏觀環境。該行業的主要驅動力仍然強勁。其中包括車輛的平均車齡（持續增加，目前已達 12.5 年）以及行駛里程（預計今年這兩項數據將進一步增加）。

Combined with the strengthening do-it-for-me demand, I'm confident that Advance can begin to capitalize on the strong fundamentals of the industry.

加上「為我做」需求的增強，我相信 Advance 可以開始利用該行業的強勁基本面。

Now I'd like to welcome and turn the call over to Ryan Grimsland, our CFO, who will review our financial performance in 2023 and discuss the 2024 guidance we provided in the release this morning. Ryan?

現在，我想歡迎並將電話轉交給我們的財務長 Ryan Grimsland，他將回顧我們 2023 年的財務業績，並討論我們在今天上午發布的 2024 年指南。瑞安？

Thanks, Shane, and good morning. I'm pleased to be here for my first earnings call as CFO of Advance.

謝謝，肖恩，早安。我很高興能作為 Advance 財務長參加我的第一次財報電話會議。

Before I move to the financials, I would also like to thank our team members for their continued dedication as well as the warm welcome I received from the team.

在開始討論財務之前，我還要感謝我們的團隊成員的持續奉獻以及團隊對我的熱烈歡迎。

Since my arrival at Advance, there are several swift changes we have made to allow for the necessary transformation of our finance function. As Shane discussed, we recently appointed Elizabeth Dreyer as our new Senior Vice President, Chief Accounting Officer and Controller. Elizabeth's impressive track record in a variety of financial leadership roles will benefit us as we work to remediate our previously disclosed material weakness related to internal control, which I'll speak to in more detail in just a moment.

自從我來到 Advance 以來，我們迅速做出了幾項改變，以便對我們的財務職能進行必要的轉變。正如肖恩所討論的，我們最近任命伊麗莎白·德雷爾 (Elizabeth Dreyer) 為我們新的高級副總裁、首席會計官兼財務總監。伊麗莎白在各種財務領導職位上的令人印象深刻的記錄將使我們受益，因為我們正在努力糾正我們之前披露的與內部控制相關的重大缺陷，我將在稍後更詳細地討論這一點。

In my first 90 days with Advance, I've had the privilege to meet and connect with our hard-working and talented finance and accounting teams. I'm committed to providing cohesive leadership as well as ensuring we have the needed incremental resources that will enable us to be a best-in-class retail organization.

在加入 Advance 的頭 90 天裡，我有幸與我們勤奮、才華橫溢的財務和會計團隊會面並建立聯繫。我致力於提供有凝聚力的領導力，並確保我們擁有所需的增量資源，使我們能夠成為一流的零售組織。

As you heard from Shane, we are focused on improving the fundamentals across the business to bring rigor, discipline and accountability with a sense of urgency. We have begun to make changes, and are committed to elevating ourselves to become a high-performing team.

正如您從肖恩那裡聽到的那樣，我們致力於改善整個企業的基本面，以帶來嚴謹、紀律和責任感以及緊迫感。我們已經開始做出改變，並致力於提升自己，成為一支高績效的團隊。

The first step has been filling critical roles, including hiring key leaders, as well as a thorough and time-intensive review of our reconciliations and processes across the company. Within this review, we recently discovered additional work needed to fully realize the intended benefits of our finance ERP system, including potentially sunsetting certain legacy systems. The turnover of accounting personnel over the past 12 months has increased the challenge to operate as an effective finance organization. We have taken aggressive action to bring in resources around our internal controls, both hiring accounting professionals and in-sourcing contractors at varying levels to provide leadership and oversight. With these actions, we are making significant progress on remediating our material weakness related to people identified in early 2023.

第一步是填補關鍵角色，包括僱用關鍵領導者，以及對整個公司的對帳和流程進行徹底且耗時的審查。在這次審查中，我們最近發現需要進行額外的工作才能充分實現我們的財務 ERP 系統的預期效益，包括可能放棄某些遺留系統。過去 12 個月會計人員的流動增加了作為一個有效的財務組織運作的挑戰。我們已採取積極行動，圍繞內部控制引入資源，聘請會計專業人員和不同級別的內包承包商來提供領導和監督。透過這些行動，我們在補救 2023 年初發現的人員相關的重大缺陷方面取得了重大進展。

In addition, as disclosed in our release, we identified issues with certain previously reported financial results. We are correcting prior period financial results in our earnings release and upcoming Form 10-K. As you saw this morning, we filed for an extension. We do not expect the results we are discussing today to be impacted. However, we need additional time, principally to finalize our assessment of internal control over financial reporting and the related disclosures. Our financial results discussed today will compare our Q4 and full year 2023 results to the corrected results for the prior periods.

此外，正如我們在新聞稿中所揭露的，我們發現了先前報告的某些財務表現存在的問題。我們正在收益發布和即將發布的 10-K 表格中更正前期財務結果。正如你今天早上看到的，我們申請了延期。我們預計我們今天討論的結果不會受到影響。然而，我們需要更多時間，主要是完成對財務報告和相關揭露的內部控制的評估。我們今天討論的財務表現將把我們第四季和 2023 年全年的業績與前期的修正結果進行比較。

Now on to our results. In the fourth quarter, our net sales of $2.5 billion decreased 0.4% compared with Q4 2022. And comparable store sales decreased 1.4%. This was primarily driven by softness in DIY throughout the quarter, but particularly, in the last 4 weeks of the year as we lapped tougher comparisons to the prior year.

現在來看我們的結果。第四季度，我們的淨銷售額為 25 億美元，較 2022 年第四季下降 0.4%。可比商店銷售額下降 1.4%。這主要是由整個季度 DIY 的疲軟推動的，特別是在今年的最後 4 週，因為我們與去年進行了更嚴格的比較。

However, we continue to be encouraged by our performance in Pro as we realized strong transactional growth in the quarter as a result of improved availability.

然而，我們繼續對專業版的表現感到鼓舞，因為由於可用性的提高，我們在本季度實現了強勁的交易成長。

The West and Northeast were our top-performing regions, while the Mid-Atlantic and Midwest were our most challenged in the quarter, as they were impacted by unfavorable weather.

西部和東北部是我們表現最好的地區，而中大西洋和中西部是我們本季面臨的最大挑戰，因為它們受到不利天氣的影響。

From a category perspective, as we improve our availability, we saw strength in filters, heating and cooling and engine management. In Q4, gross profit margin of 38.6% declined 504 basis points from the prior year quarter. There are business performance issues along with several atypical drivers that contributed to the deleverage.

從類別的角度來看，隨著我們提高可用性，我們看到了過濾器、加熱和冷卻以及引擎管理方面的優勢。第四季，毛利率為 38.6%，較去年同期下降 504 個基點。業務績效問題以及一些非典型驅動因素導致了去槓桿化。

Inventory-related items contributed approximately 280 basis points, of which roughly 170 basis points are related to changes in estimates, and 110 basis points from inventory-related capitalization costs. In 2022, we hired an external firm to identify and recover previously earned vendor incentives over a multiyear period. This resulted in approximately 120 basis points of deleverage.

庫存相關項目貢獻了約 280 個基點，其中約 170 個基點與估計變化有關，110 個基點來自與庫存相關的資本化成本。 2022 年，我們聘請了一家外部公司來識別並收回先前在多年期間獲得的供應商獎勵。這導致去槓桿化大約120個基點。

Lastly, elevated supply chain costs contributed approximately 50 basis points. SG&A was $999 million in Q4 2023 compared with $960 million in Q4 2022. As a percentage of net sales, our SG&A expenses deleveraged 176 basis points to 40.6%. The deleverage was driven by a year-over-year increase in occupancy costs, labor-related expenses from our intentional investments in our frontline team members and new store expenses. These were partially offset by previously discussed productivity actions taken in Q4.

最後，供應鏈成本上升貢獻了約 50 個基點。 2023 年第四季的銷售及管理費用為9.99 億美元，而2022 年第四季為9.6 億美元。以淨銷售額的百分比，我們的銷售及管理費用去槓桿化了176 個基點，達到40.6% 。去槓桿化的推動因素包括入住成本的同比增長、我們對一線團隊成員的有意投資產生的與勞動力相關的費用以及新店費用。這些被先前討論的第四季採取的生產力行動部分抵消。

Importantly, we also incurred approximately $8 million in expenses related to our restructuring as well as $5 million related to the strengthening of our accounting resources.

重要的是，我們還產生了約 800 萬美元與重組相關的費用以及與加強會計資源相關的 500 萬美元費用。

These results are not indicative of how we want to run the organization. As Shane mentioned, we are reducing expenses by building a cost-conscious mindset throughout Advance. Our Q4 operating income margin deleveraged 679 basis points compared with the prior year quarter. Diluted loss per share was $0.59 in Q4 compared with $1.39 earnings in the prior year quarter. This was primarily driven by lower net income as well as higher interest expense.

這些結果並沒有顯示我們希望如何運作該組織。正如 Shane 所提到的，我們透過在整個 Advance 中建立成本意識思維來減少開支。與去年同期相比，我們第四季的營業利潤率去槓桿化了 679 個基點。第四季攤薄後每股虧損為 0.59 美元，去年同期每股收益為 1.39 美元。這主要是由於淨利潤下降以及利息支出增加所致。

For full year 2023, net sales of approximately $11.3 billion increased 1.2% compared with prior year. Full year comparable store sales decreased 0.3%. Our gross profit decreased 8.3% year-over-year and gross profit margin contracted 414 basis points to 40.1%.

2023 年全年淨銷售額約 113 億美元，較上年成長 1.2%。全年可比商店銷售額下降 0.3%。我們的毛利年減8.3%，毛利率收縮414個基點至40.1%。

Inventory-related items contributed approximately 157 basis points. Cost increases were not fully covered by price contributed approximately 74 basis points to the full year decrease.

庫存相關項目貢獻了約 157 個基點。成本成長未能完全被價格所抵消，導致全年下降約 74 個基點。

As mentioned earlier, the initiatives to recover previously earned vendor incentives negatively impacted full year gross margins by 60 basis points.

如前所述，收回先前獲得的供應商獎勵的舉措對全年毛利率產生了 60 個基點的負面影響。

Lastly, elevated supply chain costs contributed approximately 50 basis points.

最後，供應鏈成本上升貢獻了約 50 個基點。

SG&A expense for full year 2023 increased 3.5% compared with 2022. On a rate basis, SG&A as a percentage of net sales increased 85 basis points to 39.1%. This was primarily driven by expenses growing faster than sales throughout the year as well as an incremental onetime SG&A expenses related to head count reductions and personnel changes.

與 2022 年相比，2023 年全年的 SG&A 費用增加了 3.5%。以比率計算，SG&A 佔淨銷售額的百分比增加了 85 個基點，達到 39.1%。這主要是由於全年費用成長快於銷售成長，以及與人員減少和人事變動相關的一次性銷售、一般管理費用的增量。

Our full year 2023 operating income decreased 82.9% to $114 million. On a rate basis, our OI margin contracted 500 basis points to 1%. Full year earnings per share were $0.50 compared with $7.65 at the end of 2022. Our 2023 capital expenditures were $242 million compared with $424 million in 2022. The primary drivers of the reduced capital expenditures are related to fewer new store openings and IT-related expenses. We expect that our overall capital expenditures in 2024 will focus primarily on IT enhancements and supply chain optimization.

2023 年全年營業收入下降 82.9% 至 1.14 億美元。以利率計算，我們的 OI 利潤率收縮了 500 個基點至 1%。全年每股收益為0.50 美元，而2022 年底為7.65 美元。我們2023 年的資本支出為2.42 億美元，而2022 年為4.24 億美元。資本支出減少的主要原因與新店開張和IT 相關費用的減少有關。我們預計 2024 年的整體資本支出將主要集中在 IT 增強和供應鏈優化。

We are committed to a disciplined capital allocation strategy on high-return initiatives that hold our teams accountable to time, budget and financial targets. Free cash flow for the full year was $44 million. This year-over-year reduction was due to lower net income results despite lower capital spend.

我們致力於針對高回報計畫採取嚴格的資本分配策略，使我們的團隊對時間、預算和財務目標負責。全年自由現金流為 4,400 萬美元。年比下降的原因是儘管資本支出較低，但淨利卻較低。

Since Shane and I have joined Advance, as you would expect, we have taken a deep dive into the business. While we have moved quickly to simplify the business and taken other actions to help put the company on a trajectory for improved performance, we clearly have more work to do. We are focusing on the optimization of our supply chain assets, implementing additional cost-cutting measures, particularly with indirect spend and improving store productivity. We believe our efforts will begin to deliver incremental improvements this year, which is factored into our 2024 guidance while setting the stage for growth in the years to come.

正如您所料，自從肖恩和我加入 Advance 以來，我們就深入研究了這項業務。雖然我們已迅速採取行動簡化業務並採取其他行動來幫助公司走上提高績效的軌道，但我們顯然還有更多工作要做。我們專注於供應鏈資產的最佳化，實施額外的成本削減措施，特別是間接支出和提高商店生產力。我們相信，我們的努力將在今年開始實現漸進式改進，這已納入我們的 2024 年指導方針，同時為未來幾年的成長奠定基礎。

Our assumptions for 2024 include continued pressure on the DIY consumer, offset by DIFM improvement and modest inflation. These factors, coupled with the solid industry fundamentals Shane discussed earlier, are considered in our full year 2024 guidance, which includes net sales of $11.3 billion to $11.4 billion, comparable store sales of 0% to 1%, operating income margin of 3.2% to 3.5%, diluted earnings per share of $3.75 to $4.25, capital expenditures of $200 million to $250 million, and a minimum of $250 million in free cash flow.

我們對 2024 年的假設包括 DIY 消費者面臨的持續壓力，但被 DIFM 改善和溫和通膨所抵消。這些因素，加上Shane 之前討論的堅實的行業基本面，在我們的2024 年全年指導中得到了考慮，其中包括113 億美元至114 億美元的淨銷售額、0% 至1% 的可比商店銷售額、3.2% 至3.2% 的營業利潤率。3.5%，稀釋後每股收益 3.75至4.25美元，資本支出2億至2.5億美元，自由現金流至少2.5億美元。

With that, I'd like to turn the call back over to Shane.

說到這裡，我想把電話轉回謝恩。

Thanks, Ryan. There's no doubt that we've got our work cut out for us in 2024, but I am confident that with our decisive actions and a focused team, coupled with favorable industry fundamentals, we can return to profitable growth.

謝謝，瑞安。毫無疑問，2024 年我們的工作已經完成，但我相信，透過我們果斷的行動和專注的團隊，再加上有利的行業基本面，我們能夠恢復盈利增長。

Advance has a proud 90-year legacy, a reenergized frontline team and a leadership team committed to delivering a powerful comeback.

Advance 擁有令人自豪的 90 年傳統、重新煥發活力的一線團隊以及致力於實現強勁復興的領導團隊。

I'd now like to open the call up to address your questions. Operator?

我現在想打開電話來回答您的問題。操作員？

(Operator Instructions) Our first question today comes from Chris Horvers at JPMorgan.

（操作員指示）我們今天的第一個問題來自摩根大通的 Chris Horvers。

Welcome to everybody on the management team. My first question is going to start at a low level and then I'm going to try to bring it up to a higher level from a margin perspective. If you think about the fiscal year items, could you help us understand, and in 4Q, like the change in the estimate, the vendor incentive pressures, what exactly is going on there? Are you essentially writing inventory off that doesn't exist? Or are you writing inventory down to a lower market level such that, perhaps when you sell it later, there's going to be some gross margin recapture? And on the vendor incentive side, totally unclear on what that is. You had accrued for vendor incentives and now you're writing them off, and what led to that?

歡迎管理團隊的每個人。我的第一個問題將從低水平開始，然後我將嘗試從利潤角度將其提升到更高水平。如果您考慮財政年度的項目，您能否幫助我們理解，在第四季度，例如估計的變化、供應商激勵壓力，到底發生了什麼？您實際上是在註銷不存在的庫存嗎？或者您是否將庫存減記至較低的市場水平，以便稍後出售時，可能會重新獲得一些毛利率？在供應商激勵方面，完全不清楚那是什麼。您已經累積了供應商激勵措施，現在卻將其沖銷，是什麼導致了這種情況？

Yes. Chris, this is Ryan, and thanks for joining us today.

是的。克里斯，我是瑞安，感謝您今天加入我們。

Yes, a couple of things. Those are 2 really the big drivers of our inventory changes. Some of it is inventory that we're shrinking out of the system, some of it is changes in our excess of obsolete calculations. And then some of it is on the vendor incentives, and so approved vendor incentives. Some businesses we no longer do business with, challenges in recovering. We're just making sure we've got the right amount that we believe we're going to be able to recover.

是的，有幾件事。這兩個確實是我們庫存變化的主要驅動因素。其中一些是我們從系統中縮減的庫存，一些是我們多餘的過時計算的變化。其中一些是關於供應商的激勵措施，以及批准的供應商激勵措施。我們不再與一些企業開展業務，復甦面臨挑戰。我們只是確保我們獲得了我們認為能夠收回的正確金額。

Chris, it's Shane. Not unsurprisingly, new CFO, new CAO digging in, in the business, and looking at our different methods of estimating, what we keep and what's done and what's not, and they're digging in to set us up for success. And that's exactly what's occurring here.

克里斯，這是謝恩。毫不奇怪，新的財務長、新的首席行政官深入業務，研究我們不同的估算方法，我們保留了什麼、做了什麼、沒有做什麼，他們正在努力為我們的成功做好準備。這正是這裡發生的事情。

And Chris, I'll add one more thing on that. We mentioned, last year, there was a prior initiative to go back and look at vendor income over a multiyear period incentives, et cetera, that we have up on the table. That had a positive impact last year that we're cycling over this year.

克里斯，我還要補充一件事。我們提到，去年，我們已經提出了一項先前的倡議，即回顧並查看多年期激勵措施中的供應商收入等。去年這對我們今年的騎行產生了積極影響。

Okay. So then maybe to clean it up, as you think about on a fiscal year basis, like what are just clean laps, i.e., you're going to get x basis points back in the gross margin line because it was a -- there's an impact this year that is not going to affect next year, and you'll get it back, both in terms of the gross margin and SG&A lines?

好的。因此，也許要清理它，就像你在財政年度的基礎上考慮的那樣，就像乾淨的圈一樣，也就是說，你將在毛利率線上得到 x 個基點，因為它是 - 有一個今年的影響不會影響明年，你會在毛利率和銷售管理費用方面收回它嗎？

Yes, Chris. So I would expect roughly 157 basis points of those kind of atypical items that I don't anticipate us cycling again next year. So from a -- that's a COGS perspective there, a margin rate.

是的，克里斯。因此，我預計這些非典型項目的價格約為 157 個基點，我預計明年我們不會再騎自行車。因此，從銷貨成本的角度來看，即保證金率。

From an SG&A perspective, about $12 million, really, that's related to severance. And some of the expenses related to remediate our material weakness on the SG&A side.

從 SG&A 的角度來看，大約 1200 萬美元，確實與遣散費有關。一些費用與彌補我們在銷售管理、行政管理方面的重大弱點有關。

The next question comes from Michael Lasser from UBS.

下一個問題來自瑞銀集團 (UBS) 的 Michael Lasser。

Given all the moving parts with your margin structure right now, what do you think an ongoing sustainable operating margin for the business is in 2025 and beyond? Is the '24 level something that you're working to grow off of?

考慮到目前您的利潤結構的所有變化因素，您認為 2025 年及以後該業務的持續可持續營運利潤率是多少？ '24 等級是你努力成長的目標嗎？

Michael, it's Shane, and Ryan will add to this.

邁克爾，我是肖恩，瑞安會補充這一點。

So first, you heard some color from Ryan, that we stated a 1 OI in terms of what we published. You can kind of put together some of the things that might not be occurring this year to get to a bit of a baseline. We put out our guide, which we feel good about. And then later this year, look for us to give a multiyear perspective on where the business can go.

首先，您從 Ryan 那裡聽到了一些信息，我們在發布的內容中表示了 1 OI。您可以將今年可能不會發生的一些事情放在一起，以獲得一些基準。我們推出了我們的指南，我們對此感覺很好。今年晚些時候，我們將就業務發展方向提供多年視角。

As we sit in the trenches today, we're looking to be incrementally better every day, and that's the first step. And as we get that credibility, notably around this 2024 year guidance, we'll look to continue that journey to further points. But Ryan?

當我們今天坐在戰壕裡時，我們希望每天都變得更好，這是第一步。當我們獲得這種可信度時，特別是圍繞 2024 年的指導，我們將尋求繼續這趟旅程，以取得更遠的目標。但是瑞安？

Yes, Michael, a good question.

是的，邁克爾，這是個好問題。

So that 157 basis points is what I would think from atypical items that we don't expect or anticipate to lap again this year. So that's 1 data point.

因此，我認為今年不會再次出現 157 個基點的非典型項目。這是 1 個數據點。

In our guide, we do have modest margin rate expansion as we continue to execute on these decisive actions that we talked about earlier in the call. So we've got some modest increase there, as you can see in our OI margin. That's primarily -- that OI margin expansion is primarily coming from gross profit.

在我們的指南中，隨著我們繼續執行我們在電話會議早些時候討論的這些決定性行動，我們確實有適度的保證金率擴張。因此，正如您在我們的持倉利潤率中看到的那樣，我們在這方面有一些適度的成長。這主要是－OI 利潤率的擴張主要來自於毛利。

Okay. And then obviously, we're going to get more information on the sales process in the second quarter. So 2 related questions to that. Can you give us a peek on how that's going to be impacting the financial performance of the business over the long term so we can get an assessment of what we should be modeling in terms of the ongoing sustainable margin rate for the core business you'll be holding on to? That's number one.

好的。顯然，我們將在第二季度獲得有關銷售流程的更多資訊。所以有兩個相關的問題。您能否讓我們了解一下這將如何影響企業的長期財務業績，以便我們可以根據核心業務的持續可持續利潤率來評估我們應該建模的內容堅持？這是第一名。

And two, how are you thinking about balancing maximizing the value of these assets with the need for resources to improve the business given that free cash flow is under pressure, the rating agencies have downgraded your credit rating, and you have a lot of receivables that are factored?

第二，鑑於自由現金流面臨壓力，評級機構降低了您的信用評級，並且您有大量應收帳款，您如何考慮平衡這些資產的價值最大化與改善業務所需的資源被分解？

Yes, Michael lots to unpack there. So let's start with your second question. Worldpac is a good business with good team members. This isn't a fire sale. There's no sort of urgency that we have to sell the business. It's really around strategy and where we're taking the company. We believe that the blended box model is a route to success, selling a Pro and DIY customer from our core stores. And so that strategic review led to the idea of selling Worldpac, which I think is the right move for the organization.

是的，邁克爾有很多東西要在那裡打開。那麼讓我們先從你的第二個問題開始。 Worldpac 是一家優秀的企業，擁有優秀的團隊成員。這不是甩賣。我們並不急於出售該業務。這實際上是圍繞著策略以及我們要帶領公司走向何方。我們相信混合盒模式是一條成功之路，從我們的核心商店向專業客戶和 DIY 客戶銷售。因此，策略審查導致了出售 Worldpac 的想法，我認為這對該組織來說是正確的舉措。

So there's not -- as it relates to value maximization, we don't have to sell. And that's why we say, it's a potential sale process.

所以沒有——因為它涉及價值最大化，我們不必出售。這就是為什麼我們說這是一個潛在的銷售過程。

The good news is the interest thus far has been significant. We're seeing a lot of players, both breadth and depth of players who are expressing interest. Centerview is running the process for us, and it's going at the tempo that I've seen, have done 40 deals of one sort or another. And so as we get to price discovery and working with the potential buyers, we'll look to complete that process in the second quarter.

好消息是迄今為止人們的興趣一直很大。我們看到很多玩家，無論是廣度還是深度的玩家都表達了興趣。 Centerview 正在為我們運行這個流程，並且按照我所看到的節奏進行，已經完成了 40 筆這樣或那樣的交易。因此，當我們開始價格發現並與潛在買家合作時，我們將尋求在第二季完成流程。

Importantly, though, we do have and have started to think about what we would do with the proceeds. And I can kind of think about them in a couple of buckets. I think debt pay down, figures into what we would disposition with the funds. And then secondly, there are some key initiatives. You've heard our decisive actions that we can potentially accelerate with additional proceeds. So our supply chain consolidation, I think that can be amplified with some of the Worldpac proceeds. You could think about our IT initiatives. You heard about our -- we've got our new inventory system coming online, our POS system work that can be accelerated.

但重要的是，我們確實已經開始考慮如何利用所得收益。我可以從幾個方面來思考它們。我認為債務償還取決於我們將如何處置這些資金。其次，有一些關鍵舉措。您已經聽說過我們的果斷行動，我們有可能透過額外收益來加速這些行動。因此，我認為我們的供應鏈整合可以透過 Worldpac 的一些收益來放大。您可以考慮一下我們的 IT 舉措。您聽說過我們的新庫存系統即將上線，我們的 POS 系統可以加速。

And then lastly, just on our store infrastructure, either in terms of sprucing up existing stores or with our new real estate team, looking at what we can do in terms of our new store openings.

最後，就我們的商店基礎設施而言，無論是在美化現有商店方面，還是與我們的新房地產團隊一起，看看我們在開設新店方面可以做些什麼。

On your first question, we're not ready to give a definitive depiction of what we look like as a remainder Co. without Worldpac. Again, we're titling in a potential sale process at this point. But as we get closer and we get more information, we'll certainly provide that. But we feel good that in the wake of that sale process, if it goes through, we have a company that's focused on selling auto parts out of a blended box, and that's what we're going to do.

關於你的第一個問題，我們還沒有準備好明確描述我們作為一家沒有 Worldpac 的剩餘公司的樣子。再次，我們此時正在潛在的銷售過程中獲得所有權。但隨著我們越來越接近並獲得更多信息，我們肯定會提供這些信息。但我們感覺很好，在銷售過程之後，如果它順利進行，我們將擁有一家專注於銷售混合盒子中的汽車零件的公司，這就是我們要做的。

The next question comes from Simeon Gutman from Morgan Stanley.

下一個問題來自摩根士丹利的西蒙古特曼。

Shane. Ryan, Hey Ryan. I wanted to look at the guidance in a little different way. If we annualize the fourth quarter EBIT, you get to about $160 million. And then when we add back the cost saves, which I guess some of them may not fully annualize, you get back about -- roughly a $360 million run rate. That's a tad below the guidance.

謝恩.瑞安，嘿瑞安。我想以一種不同的方式來看待該指南。如果我們將第四季的息稅前利潤按年化，則約為 1.6 億美元。然後，當我們將節省的成本加回來時（我猜其中一些可能無法完全按年計算），您將獲得大約 3.6 億美元的運行率。這有點低於指引。

So a couple of questions is partly, like how much reinvestment is there in some of the savings? And then what improves in the core business to get you the higher threshold, and some of this may be some of the things that don't repeat, I think to Chris' question earlier, but there doesn't seem to be a lot of reinvestment, if you just take sort of that math?

因此，有幾個問題是部分的，例如一些儲蓄中有多少再投資？然後核心業務有哪些改進可以讓你門檻更高，其中一些可能是一些不會重複的事情，我想克里斯之前的問題，但似乎沒有很多再投資，如果你只是做一下數學計算？

Yes, Simeon. So one of the things we did do is we invested in the frontline. So we took some of the cost savings and we reinvested that back into the frontline. So that was about -- of that $150 million, we invested about $50 million back in.

是的，西蒙。因此，我們所做的事情之一就是對前線進行投資。因此，我們節省了一些成本，並將其重新投資到前線。因此，在這 1.5 億美元中，我們投資了約 5,000 萬美元。

I think from a -- if we look at our full year right now, I think we're coming in close on an EBIT perspective, [160], we take the 157 basis points, I would say, at that back plus $12 million in SG&A. You can get to kind of a normalized rate, and then you take that $100 million in SG&A.

我認為，如果我們現在看看全年，我認為從息稅前利潤的角度來看，我們已經很接近了，[160]，我們採取 157 個基點，我想說，再加上 1200 萬美元在SG&A。您可以達到某種標準化的利率，然後將這 1 億美元用於 SG&A。

Now, our guide on the top line of 0% to 1%. We're going to work to manage inflation in our SG&A to get that flow through. So I think that's how we would think from where we got to our guidance.

現在，我們的指南最上面一行是 0% 到 1%。我們將努力控制銷售管理及行政費用（SG&A）中的通貨膨脹，以實現此一流動。所以我認為這就是我們在獲得指導時的思考方式。

Simeon, just a couple of quick points on the cost. I welcome the follow-up, just a second.

西蒙，我簡單介紹一下成本的幾點。我歡迎後續行動，請稍等。

So on the cost out, the $150 million, that cost is out. So we made the tough call, and never easy, some 400 team members not with the company anymore. And so that's in the run. That's not an [e toll] number in terms of how we're thinking about the organization.

因此，就成本而言，1.5 億美元的成本已經被淘汰了。因此，我們做出了艱難的決定，這絕非易事，大約 400 名團隊成員不再在公司工作。所以這就是在運行中。就我們如何看待該組織而言，這不是一個[e toll]數字。

And then as you think about what we need to do, you heard Ryan's points, but in terms of actual physical initiatives on the ground, you're going to see renewed emphasis on the up and down the street Pro from our organization this year. I think it's an area where we had our eye off the ball a little bit. But I also think it's an area we're on a relative right to win in terms of the capabilities of the team members we have out in the field, and I'm referring to our TAMs who are outside sales team members, and our CPPs who are inside the store Pros, that's an area that they're excited to go after.

然後，當您思考我們需要做什麼時，您聽到了 Ryan 的觀點，但就實際的實際行動而言，今年您將看到我們組織重新重視街頭專業人士。我認為這是一個我們有點忽略的領域。但我也認為，就我們在該領域擁有的團隊成員的能力而言，我們在這個領域相對有獲勝的權利，我指的是我們的 TAM（外部銷售團隊成員）和我們的 CPP店內的專業人士，這是他們很樂意去的區域。

And the follow-up is, Shane, I'm intrigued by some of the things you're addressing and your diagnosis of what has been kind of holding this business back.

肖恩，接下來的問題是，我對你正在解決的一些問題以及你對阻礙這項業務的原因的診斷很感興趣。

So you mentioned a bunch of things, systems and supply chain. Curious about your take if there is an Achilles heel, whether it is supply chain or merchandising or process versus infrastructure, if you can elaborate a bit on that?

所以你提到了很多東西，系統和供應鏈。想知道您的看法是否有致命弱點，無論是供應鏈、銷售或流程與基礎設施，能否詳細說明？

So I think some of it goes to culture and focus. And the good news is, as I meet the team members in the field, you see that 90-year heritage. You see men and women who sell auto parts who want to win. And so we need to unlock that by making sure that what we do as a company, and from my time in the service, call it the inverted pyramid, that we are geared not as a headquarter-centric organization, but we're a field-first organization. And if you spend time listening to the customers, they'll give you the feedback on what it takes to be successful. If you take time empowering our frontline associates, that's a key route forward for us.

所以我認為其中一些與文化和焦點有關。好消息是，當我與該領域的團隊成員見面時，您會看到 90 年的遺產。你會看到銷售汽車零件的男男女女都想獲勝。因此，我們需要透過確保我們作為一家公司所做的事情來解鎖這一點，從我在服務中的時間來看，稱之為倒金字塔，我們不是一個以總部為中心的組織，而是一個領域-第一組織。如果您花時間傾聽客戶的意見，他們會給您關於成功所需的回饋。如果您花時間為我們的第一線員工提供支持，這對我們來說是一條關鍵的前進道路。

Additionally, it's the blended box model. We, I think, looked at different paths to heaven as a company in the past, and didn't put the emphasis on the blended box. You can see, demonstrably, in the industry where the blended box works. It works with terms of the breadth of customers you could serve. It works in terms of the flow-through you get, when you get marginal sales in the same location. So that's really where we're going as a company in the future.

此外，它是混合盒模型。我認為，作為一家公司，我們過去曾考慮過不同的通往天堂的道路，並沒有把重點放在混合盒子上。您可以清楚地看到混合盒子發揮作用的行業。它適用於您可以服務的客戶範圍。當您在同一地點獲得邊際銷售額時，它會根據您獲得的流量而發揮作用。所以這確實是我們公司未來的發展方向。

The next question comes from Greg Melich from Evercore ISI.

下一個問題來自 Evercore ISI 的 Greg Melich。

I guess my first question is, I'd just like to clarify a little bit. I know it's a potential sale. But in your guidance this year, how much of the free cash flow sales, et cetera, are coming from Worldpac or the businesses you're considering sale?

我想我的第一個問題是，我想澄清一下。我知道這是一個潛在的銷售。但在您今年的指導中，有多少自由現金流銷售等來自 Worldpac 或您正在考慮出售的企業？

Yes, Greg, this is Ryan. In the guidance, we're not contemplating. We didn't put anything in there for the sale. We -- our guide is based on the remain Co. or the whole company as it is today, with Worldpac and Canada inc.

是的，格雷格，這是瑞安。在指導中，我們沒有考慮。我們沒有在裡面放任何東西來出售。我們——我們的指南是基於保留的公司或今天的整個公司，包括 Worldpac 和 Canada Inc.。

Yes. So we'll revisit with you at midyear if that process goes through, and then you'll see the breakout proceeds, the remainder Co. and our plan for disposition of proceeds.

是的。因此，如果該過程順利完成，我們將在年中與您再次討論，然後您將看到突破收益、剩餘的公司以及我們的收益處置計劃。

So just to be -- whatever Worldpac -- maybe if I ask the question a different way, last year, was -- did the remain Co. generate free cash flow, for example?

因此，無論 Worldpac 是什麼，也許如果我以不同的方式問這個問題，去年，剩下的公司是否產生了自由現金流？

We're not going to talk about specific individual business units at this time, but we'll come back in Q2 to give you more deals on that, Greg.

我們目前不會談論特定的單一業務部門，但我們將在第二季回來為您提供更多相關優惠，格雷格。

Fair enough. Well, update us then.

很公平。好吧，那就更新我們吧。

I guess, Shane, I wanted to follow up a little bit more on the actions taken from -- in terms of stabilizing the business from a profit standpoint I think you went through. I'd love to hear a little bit more as you toured the country and talked to the frontline and the customers. It sounds like the focus here is getting up and down the street, serving them. What is it that they need to get that they're not getting or haven't gotten from Advance the last couple of years? Is it product quality? Is it speed? Is it in stocks? What -- could you narrow that down a little bit more?

我想，肖恩，我想對您所採取的行動進行更多跟進——從利潤的角度來看，我認為您經歷過從穩定業務的角度來看。當您訪問該國並與前線和客戶交談時，我很想聽到更多。聽起來這裡的焦點是在街上走來走去，為他們服務。有什麼是他們需要得到但在過去幾年裡他們沒有從 Advance 中得到的？是產品品質嗎？是速度嗎？是股票嗎？什麼－你能把範圍再縮小一點嗎？

Yes. Great question. So I'll start with the team members. We've got to make sure that our team members feel like they're valued. And if you looked at where we'd invested dollars, it hadn't been on the frontline. And so that goes to wage rates, that goes to what their bonus programs are, that goes to training programs and certification so that both their capabilities and sense of pride are amplified.

是的。很好的問題。所以我將從團隊成員開始。我們必須確保我們的團隊成員感到自己受到重視。如果你看看我們在哪裡投資了美元，你會發現它不是在前線。因此，這涉及工資率，這涉及到他們的獎金計劃，這涉及培訓計劃和認證，以便增強他們的能力和自豪感。

So we've got a significant body of work underway, focused on the frontline. And we're seeing reduction in turnover. So that's been a key piece.

因此，我們正在進行大量工作，並專注於第一線。我們看到營業額在減少。所以這是一個關鍵部分。

Secondarily, as we spent money, and this goes to the SG&A takeout, we would engage in marketing programs that were expensive, that didn't bear fruit. And so we're pivoting anything we do around being successful with the customer in the market as it relates to the customers' feedback, product availability. So we would hear from statured customers, who were their first call, and they say, hey, if I call you first, but you don't have the product. So you are literally driving me to call somebody else. And so we've had a lot of work going on in product availability. Our in-stocks are up over 200 basis points this year. We -- if you look at our aggregate inventory, it's down, and Ryan has talked to some of the disposition. But notably, we put $300 million of incremental nutritive inventory that our customers are asking for. We're capturing those demand signals so that we have better in-stocks. We want to further that in terms of how we cover on the up and down the street Pro with our outside sales team members, and there's a tremendous amount of work there.

其次，當我們花錢時，這筆錢將用於SG&A外賣，我們會參與昂貴的行銷計劃，但不會有成果。因此，我們所做的一切都是圍繞著在市場上與客戶取得成功展開的，因為這與客戶的回饋和產品可用性有關。因此，我們會聽到資深客戶的來電，他們是他們的第一個電話，他們說，嘿，如果我先給你打電話，但你沒有產品。所以你其實是在驅使我打電話給別人。因此，我們在產品可用性方面做了很多工作。今年我們的庫存增加了 200 多個基點。如果你看看我們的總庫存，你會發現它下降了，瑞安已經與部分處置人員進行了交談。但值得注意的是，我們根據客戶的要求投入了 3 億美元的增量營養庫存。我們正在捕捉這些需求訊號，以便我們擁有更好的庫存。我們希望在如何與外部銷售團隊成員一起涵蓋街頭專業人士方面進一步實現這一點，並且那裡有大量的工作。

I didn't touch on this in the script, but within our org structure, our pro efforts were bifurcated in different parts of the company. And now, those are solidified. And so we go forward as one team as we think about our Pro. So it's not -- if you call the store and you're the same customer, you get a different set of interactions that you might get if you're working with our outside team. So that's going on a much more definitive basis.

我在劇本中沒有提及這一點，但在我們的組織結構中，我們的專業工作在公司的不同部門進行了分工。現在，這些都得到了鞏固。因此，當我們思考我們的 Pro 時，我們會作為一個團隊前進。所以事實並非如此——如果你打電話給商店並且你是同一個客戶，你會得到一組不同的交互，而如果你與我們的外部團隊合作，你可能會得到一組不同的交互。所以這是在一個更明確的基礎上進行的。

And the last thing I'll touch on in the merchandising side of the house is reaching out to our vendors, both to ensure that from a cost position and a product availability and a prioritization for innovation that we're where we need to be. But I think important for everybody to know, as we talk to the vendors, that feedback is also overwhelmingly positive around supporting Advance. There is a strong desire to see Advance thrive, and you can say, hey, that's -- the vendors should have that perspective. But that works for us. The idea that we've got this collective coalition between the vendors, between our engaged frontline, between customers who want to buy from us, we just need to have our fundamentals right in terms of that product, that price and the delivery all working together.

在銷售方面，我要談的最後一件事是與我們的供應商聯繫，以確保從成本地位、產品可用性和創新優先順序來看，我們處於我們需要的位置。但我認為每個人都應該知道，當我們與供應商交談時，關於支持 Advance 的回饋也非常積極。人們強烈希望看到 Advance 蓬勃發展，你可以說，嘿，供應商應該有這樣的觀點。但這對我們有用。我們的想法是，我們在供應商之間、在我們積極參與的前線之間、在想要從我們這裡購買產品的客戶之間建立了這個集體聯盟，我們只需要在產品、價格和交付方面保持正確的基本原則，所有這些都可以共同發揮作用。

Got it. And I think, Ryan, you mentioned as part of the guide, you expected a little bit of inflation in the numbers as we reinvest in that inventory and get the right stuff there. Is that fair? 1% or 2%?

知道了。我認為，瑞安，您在指南中提到，當我們對庫存進行再投資並在那裡獲得正確的東西時，您預計數字會出現一點通貨膨脹。這樣公平嗎？ 1%還是2%？

Yes. Our inflation rate right now that we're looking at is about a 1% inflation rate that we're seeing and we're expecting.

是的。我們現在看到的通貨膨脹率約為 1%，這是我們所看到和預期的。

The next question is from Bret Jordan from Jefferies.

下一個問題來自 Jefferies 的 Bret Jordan。

On the supply chain initiative, and obviously, that seems like it's been on for a while. The WMS should be done by the end of this year. At what point do you see actually having the DCs on a single ERP system? And when you've those smaller DCs as a sort of forward inventory. Will there be an investment cycle in building more of large distribution center infrastructure?

顯然，在供應鏈計劃方面，這似乎已經持續了一段時間了。 WMS 應該會在今年年底前完成。您認為什麼時候真正讓 DC 位於單一 ERP 系統上？當你將這些較小的 DC 作為一種遠期庫存。興建更多大型配送中心基礎建設是否會有投資週期？

Yes. So great question. Thank you, Brent. On the WMS, we'll be done with that this year. So Highjump is our WMS system. So we'll have that in all of what will be our replenishment DCs.

是的。很好的問題。謝謝你，布倫特。關於 WMS，我們今年將完成這項工作。所以 Highjump 就是我們的 WMS 系統。因此，我們將在所有補給 DC 中採用這一點。

The second part of the journey, in terms of creating market hubs, and you see this model probably elsewhere in the industry. We can use our smaller DCs to perform in this fashion. And we've had a journey in supply chain, but not a definitive one in terms of creating a unified single supply chain. What we had in the past, we had cross-banner replenishment. But what we were doing is basically asking 38 DCs to function as full on replenishment notes, basically to provide every product to a store requiring that product. And some products, some DCs don't have the size and capability to do that, 38 is far too many for my past life in terms of where you'd expect your vendors to ship into.

旅程的第二部分是創建市場中心，您可能會在行業的其他地方看到這種模式。我們可以使用較小的 DC 以這種方式執行。我們在供應鏈方面已經經歷了一段旅程，但在創建統一的單一供應鏈方面還不是決定性的。我們過去有跨旗補貨。但我們所做的基本上是要求 38 個 DC 充分發揮補貨單的作用，基本上向需要該產品的商店提供每種產品。有些產品、有些配送中心沒有足夠的規模和能力來做到這一點，對於我過去的生活來說，38 個對於你期望供應商運送到的地方來說太多了。

So the idea is we create a national network of larger DCs. We're not ready to definitively -- to define that exact number. But you can look at other companies, and sometimes you'll see 8, 10, 12, 14 large DCs to give you that national footprint.

所以我們的想法是創建一個由較大的資料中心組成的全國網路。我們還沒有準備好明確地定義這個確切的數字。但你可以看看其他公司，有時你會看到 8、10、12、14 個大型 DC 來為你提供全國足跡。

And then market hubs, both the conversion of our -- of the smaller DCs, we'll add additional market hubs beyond that because I think that, that flow model works. And so if you take those 2 together and look at the footprint, there are probably some additional large DC efforts that we need to undertake, and we'll describe that more in terms of, here's our exact number. Here's where we have them today. Here's where we might be in a new one." That will all be coming in the coming months. But the key for today is that we are putting a flag in the ground to have a unified supply chain, 1 flow path, 1 set of systems, and an easier interaction for our vendors to work with us.

然後是市場中心，無論是我們的小型配送中心的轉變，我們都會在此基礎上添加額外的市場中心，因為我認為這種流動模型是有效的。因此，如果您將這兩者放在一起並查看足跡，我們可能需要進行一些額外的大型 DC 工作，我們將更多地描述這一點，這是我們的確切數字。這就是我們今天看到的地方。這就是我們可能處於一個新的階段。」這一切都將在未來幾個月內實現。但今天的關鍵是，我們將一面旗幟落地，擁有一個統一的供應鏈、1條流程、1套系統，以及我們的供應商與我們合作的更輕鬆的互動。

Do you have a feeling, I guess, internally for what your basis point impact has been to run to disparate pretty inefficient supply chains, like what's the incremental cost of running as you have been running? Or what might you pick up by consolidating?

我想，您內部是否有一種感覺，即您的基點影響對不同效率相當低下的供應鏈有何影響，例如您一直在運行的增量成本是多少？或是透過整合你可以得到什麼？

I'll just say it's material, right? So if anybody who's been in logistics, if you're running 2 supply chains and everybody else or your previous endeavors as 1 supply chain, it's just -- it's just not the path forward for us. So as we will explain with you, we think there's material moneys that come out of the system.

我只能說這是物質的吧？因此，如果任何一個從事物流行業的人，如果你正在運行 2 條供應鏈，而其他人或你之前的努力是 1 條供應鏈，那麼這不是我們前進的道路。正如我們將向您解釋的那樣，我們認為系統中產生了物質資金。

And then importantly, for our customers, the product flows better. The availability goes up. And so there's kind of a 1, 2 combo there that we'll describe more at a later date.

重要的是，對於我們的客戶來說，產品流動得更好。可用性上升。因此，存在一種 1、2 組合，我們將在稍後進行更多描述。

The next question is from Steven Forbes of Guggenheim Partners.

下一個問題來自古根漢合夥人公司的史蒂文·福布斯。

Shane. Ryan. Shane, maybe a follow-up on the supply chain. You mentioned potentially using the sale proceeds to accelerate the migration to the single unified network. I was maybe just curious, like if we can think through the 2 scenarios here in terms of time frame to completion of that initiative, right? If the asset sale occurs, is there like a time frame in mind that you have to reach the goal? And then I guess, if the asset sale doesn't occur, sort of what is that change in the time frame that would result in maybe a difference in sort of the near-term free cash flow proceeds of the business?

謝恩.瑞安. Shane，也許是供應鏈的後續行動。您提到可能會使用銷售收益來加速朝向單一統一網路的遷移。我可能只是好奇，就像我們是否可以根據完成該計劃的時間框架來思考這裡的兩種情況，對吧？如果發生資產出售，您是否有一個必須達到目標的時間框架？然後我想，如果資產出售沒有發生，那麼時間範圍內的變化會導致企業近期自由現金流收益的差異嗎？

Yes. So this is my third time combining supply chains in companies, and we want it to be sooner rather than later. But it's a multiyear endeavor. I think that's just the practical reality of what happens. So can we shape save] time off? Absolutely, and we will do that with the proceeds. But this isn't something that this group should expect to be done in '24. We'll extend into '25, and probably into '26 as we do this. And in particular, there's both the existing set of efforts, which is what we'll do with the first 38, and where we have to add net new market hubs or where -- if we look at our larger DC structure, where we need to put in a large-scale new DC, those efforts take time. I think, the thing for everybody here to know is that journey is beginning. And our first market hub conversion is going on. And so -- and early indications are, this is going to be a really good thing for us.

是的。所以這是我第三次整合公司的供應鏈，我們希望它宜早不宜遲。但這是一項多年的努力。我認為這就是所發生的實際情況。那我們可以省]休假時間嗎？絕對可以，我們將用收益來做到這一點。但這不是該小組應該期望在 24 年完成的事情。當我們這樣做時，我們將延長到 25 年，也可能延長到 26 年。特別是，既有現有的一系列努力，這就是我們將在前38 個項目中所做的事情，也有我們必須在哪些地方添加淨新的市場中心，或者在哪裡——如果我們看看我們更大的DC 結構，我們需要在哪裡建立一個大規模的新資料中心，這些努力需要時間。我想，這裡的每個人都知道，旅程已經開始。我們的第一次市場中心轉換正在進行中。因此，早期跡象表明，這對我們來說確實是一件好事。

We will move as fast as we can because we know that the end state creates value for the customers and improve the profitability of the customer. And so more to come, but know that our supply chain team is dedicated. They're focused and they're already...

我們將盡快採取行動，因為我們知道最終狀態會為客戶創造價值並提高客戶的獲利能力。未來還會有更多，但要知道我們的供應鏈團隊非常敬業。他們很專注，而且已經…

And maybe just a quick follow-up for Ryan. As we think through sort of noncash and cash impact on the margin outlook, any sort of color around the fourth quarter LIFO either benefit or charge? And then sort of what's implied within the margin guide for 2024 in terms of LIFO?

也許只是瑞安的一個快速跟進。當我們思考非現金和現金對利潤率前景的影響時，第四季後進先出的任何顏色要么受益，要么收費？那麼 2024 年的保證金指南中 LIFO 的意思是什麼？

Yes. So in Q4, we saw $5.2 million of income related to LIFO. And we expect it to be moderating in 2024, so a moderate expectations in 2024 in our guidance.

是的。因此，在第四季度，我們看到與 LIFO 相關的收入為 520 萬美元。我們預計 2024 年這一趨勢將會放緩，因此我們對 2024 年的預期是溫和的。

The next question comes from Seth Sigman from Barclays.

下一個問題來自巴克萊銀行的塞思‧西格曼。

I wanted to follow up on the comps this quarter, down 1.4%. I'm just curious, as you started to implement changes, are you seeing a wider dispersion in performance across the store base? I'm sure it's noisy with weather, but anything you can point to and maybe quantify to say that some of the early initiatives are working?

我想跟進本季的比較情況，下跌 1.4%。我只是很好奇，當您開始實施變革時，您是否發現整個商店的業績差異更大？我確信天氣的影響很吵，但是你能指出並量化說一些早期的舉措正在發揮作用嗎？

Yes, absolutely. So as we saw availability improve, we did see improvement in the Pro traction. So we're actually seeing good performance in the Pro. We're excited about that, encouraged by our inventory availability.

是的，一點沒錯。因此，當我們看到可用性提高時，我們確實看到了 Pro 牽引力的提高。所以我們實際上看到了 Pro 的良好性能。我們對此感到興奮，並受到庫存可用性的鼓舞。

We still see DIY pressured. And so that kind of offsets some of the Pro performance in that. And that's also kind of what's in formed our guide going forward. We expect to see good improvement in the Pro as we have improved availability, while reducing DIY pressure going forward.

我們仍然看到 DIY 面臨壓力。因此，這抵消了 Pro 的一些性能。這也是我們未來指南的內容。我們期望在 Pro 中看到良好的改進，因為我們提高了可用性，同時減少了未來的 DIY 壓力。

Got it. Okay. And then my follow-up question is just thinking about the gap in profitability versus some of your peers, and what, I guess, you'll ultimately guide us to at some point. How much of the issue/opportunity is just 4-wall profitability that's sales-driven, it's volume driven versus how much of that profit gap is maybe inefficiency outside of the stores? And maybe both, but I'm curious how you think about that as we contemplate the road map from here?

知道了。好的。然後我的後續問題只是考慮與您的一些同行相比的盈利能力差距，以及我想您最終將在某個時候引導我們做什麼。有多少問題/機會只是由銷售驅動、銷售驅動的四壁盈利能力，而利潤差距中有多少可能是商店之外的低效率？也許兩者兼而有之，但我很好奇，當我們從這裡考慮路線圖時，您是如何看待這一點的？

Yes, it's a good question. It is a little bit of both. So some of it is -- we talked about supply chain conversion, that obviously will generate some benefit for us and how to flow that gap as well. There's also a mix factor, as far as the type of the product in our mix being heavier pro than DIY, and that margin mix has a little bit of an impact as well.

是的，這是一個好問題。兩者兼而有之。所以其中一些是——我們討論了供應鏈轉換，這顯然會為我們帶來一些好處，以及如何彌補這一差距。還有一個混合因素，就我們混合中的產品類型而言，專業產品比 DIY 更重，而且利潤混合也有一點影響。

Yes, there's also other areas where we need to focus on for merch excellence. Shane talked about improving line reviews, et cetera. So there's some areas there. We're not going to go into specifics around de-comping all of that, but obviously, there is some work and opportunity to close that gap. But I think the biggest one is that mix impact will keep us from closing it completely, but we do have opportunity, and that's why we're focused on the big one here, which is the supply chain conversion.

是的，為了實現卓越的商品，我們還需要關注其他領域。肖恩談到了改進線路評論等等。所以那裡有一些區域。我們不會詳細討論所有這些問題，但顯然，有一些工作和機會可以縮小這一差距。但我認為最大的一個是混合影響將使我們無法完全關閉它，但我們確實有機會，這就是為什麼我們專注於這裡的一個大問題，即供應鏈轉換。

Ryan is exactly right. And one way to illustrate, and why we're focused on the blended box, if you look at revenue per store, and you think about us as a kind of a [1.7] [1.8] And you can look at other folks who have higher numbers. When you add revenue to a store, $100,000, $200,000, $300,000, that money drops to the bottom line at an incrementally larger level, right? So you've got your fixed costs covered.

瑞安是完全正確的。一種說明方式，以及為什麼我們專注於混合盒，如果你看看每家商店的收入，並且你認為我們是一種 [1.7] [1.8] 你可以看看其他人更高的數字。當你為一家商店增加 10 萬美元、20 萬美元、30 萬美元的收入時，這筆錢會以越來越大的水平下降到底線，對吧？這樣您的固定成本就得到了補償。

So that's a key for us. So I think your question is a good one, Seth. You need to do both. And as we do both, we see the path forward to continued success. And know that, as we look at where Advance is, we don't sit and say, hey, let's benchmark off the other guys. Our goal as an organization is to be incrementally better. To be incrementally better every day, take care of our customers, look after our team members. And I've seen this movie before in other industries, in fact, in my last organization, and that's a recipe for success. And you'll look for that from us, and then look for us later this year to provide a perspective on what that might look like after a couple of years.

所以這對我們來說是關鍵。所以我認為你的問題很好，賽斯。你需要兩者都做。當我們同時做到這兩點時，我們就看到了持續成功的道路。要知道，當我們了解 Advance 的情況時，我們不會坐下來說，嘿，讓我們以其他人為基準。作為一個組織，我們的目標是逐步變得更好。為了每天變得更好，照顧我們的客戶，照顧我們的團隊成員。我以前在其他行業看過這部電影，事實上，在我的上一個組織中，這是成功的秘訣。您會向我們尋求這一點，然後在今年晚些時候尋找我們，以提供幾年後可能會是什麼樣子的觀點。

The next question comes from Chris Bottiglieri from BNB Paribas.

下一個問題來自法國巴黎銀行的 Chris Bottiglieri。

Sort of -- guess I'm just not used to seeing some of these inventory adjustments. Just wanted to -- I'm not sure I fully understood Chris Horvers question. Is it likely these inventory write-downs and changes in estimates will be reversed in subsequent period when you sell it? Or is that not possible? Like are these permanent changes?

有點——我猜我只是不習慣看到其中一些庫存調整。只是想——我不確定我是否完全理解克里斯·霍弗斯的問題。當你出售它時，這些庫存減記和估計變化是否有可能在後續期間轉回？或者說這是不可能的？這些變化是永久性的嗎？

Yes. No, that we don't anticipate reversing it. This was making changes to estimates and vendor receivables that -- as we went through that process. I don't -- I wouldn't expect that these would reverse at any point in time.

是的。不，我們預計不會逆轉它。當我們經歷這個過程時，這對估算和供應商應收帳款進行了更改。我不認為這些會在任何時候發生逆轉。

Got you. Okay. And then next question is just -- I was hoping you could talk more about the independent businesses that you've divested. It looks like you take up the first 100. Is this like an immediate margin saving because you -- you're actually losing money to these customers? Or it's just -- does this enable you to actually shut down some of these Carquest DCs because you wouldn't need them anymore if you stop serving this -- under these [despicable] market since...

明白你了。好的。下一個問題是——我希望你能多談論你已經剝離的獨立業務。看起來您佔據了前 100 個。這是否就像立即節省了利潤，因為您實際上正在向這些客戶賠錢？或者這只是 - 這是否使您能夠真正關閉其中一些 Carquest DC，因為如果您停止提供服務，您就不再需要它們了 - 在這些[卑鄙的]市場下，因為…

So I'll start, Chris, and Ryan can -- yes. Thanks, Chris. I'll start, and Ryan can jump in.

所以我要開始了，克里斯和瑞安可以——是的。謝謝，克里斯。我先開始，瑞安也可以加入。

The independents are an important part of the business, right? They could serve geographies we can't get to. They can serve end markets where their depth of capability exceeds ours. So this isn't a play around exiting the independent arena. This is one where, at times, we were exuberant in terms of adding independents, and as we looked at the sort of balance of trade, if you will, in terms of the benefit to each party, it wasn't working for us. In some cases, it wasn't working for the independent either. And so we looked at the aggregate number, and there are about 100 folks that at the end of the day, that didn't make sense for us to continue that relationship. And as we did that, it's a good move for us. Ryan can talk about the impact. But it's also been received well in the independent network. The independents who are good at what they do, and by the way, they exhibit a lot of pride in their business. They don't want folks representing the Carquest name and doing it in a manner inconsistent with what our customers would expect.

獨立人士是業務的重要組成部分，對嗎？他們可以為我們無法到達的地區提供服務。他們可以為能力深度超過我們的終端市場提供服務。所以這並不是一場圍繞著退出獨立舞台的遊戲。有時，我們熱衷於增加獨立人士，當我們考慮貿易平衡時，如果你願意的話，就各方的利益而言，這對我們不起作用。在某些情況下，它對獨立人士也不起作用。所以我們查看了總數，最終大約有 100 人認為我們繼續這種關係沒有意義。當我們這樣做時，這對我們來說是一個很好的舉措。瑞安（Ryan）可以談論其影響。但它在獨立網路中也受到了好評。那些擅長自己所做的事情的獨立人士，順便說一句，他們對自己的業務表現出極大的自豪感。他們不希望人們以與我們客戶期望不一致的方式代表 Carquest 名稱。

So it's been a well-received adjustment, and we're happy with the independence that we have.

所以這是一個廣受歡迎的調整，我們對我們擁有的獨立性感到滿意。

Yes, Chris, I'll just add that, yes well, we'll lose some sales on that, but we're actually going to gain on the bottom line and operating profitability, roughly $3 million to $4 million. So it's definitely a net positive for us.

是的，克里斯，我只是補充一點，是的，我們會因此損失一些銷售額，但實際上我們會獲得利潤和營業利潤，大約是 300 萬至 400 萬美元。所以這對我們來說絕對是正面的。

The next question comes from Seth Basham from Wedbush.

下一個問題來自 Wedbush 的 Seth Basham。

My question is around the balance sheet leverage going forward. How do you expect that to play out over the next few quarters, including post sale of Carquest? And any implications for the vendor inventory financing program?

我的問題是圍繞未來的資產負債表槓桿率。您預計未來幾季的表現如何，包括 Carquest 的售後？對供應商庫存融資計畫有何影響？

Yes, it's a good question. So as we said with the sale, and Shane talked about it, if we do get the proceeds from the sales, one of the first things we'll do is work to delever our balance sheet with some of those proceeds. That's one thing we'll look at immediately.

是的，這是一個好問題。正如我們在出售時所說的，以及肖恩談到的，如果我們確實從出售中獲得收益，我們要做的第一件事就是努力用其中的一些收益來降低我們的資產負債表的槓桿率。這是我們將立即關注的一件事。

But going forward, I think the business is generating good cash flow, and as part of that cash flow, we will continue to work to delever the balance sheet. We're going to first invest in the business, but also get that leverage target into a better place.

但展望未來，我認為該業務正在產生良好的現金流，作為現金流的一部分，我們將繼續努力去槓桿化資產負債表。我們將首先投資該業務，但也會將槓桿目標置於更好的位置。

Okay. That's helpful. And as you look beyond '24, obviously, early, but in with the supply chain transformation, should we expect CapEx to rise from '24 guide?

好的。這很有幫助。當你展望 24 世紀之後，顯然是早期的，但隨著供應鏈轉型，我們是否應該預期資本支出會比 24 世紀指南上升？

No. The CapEx guide that we put out contemplates actions we're taking in at supply chain conversion. We're going to be much more focused on our capital expenditures and making sure we're investing in the right things that drive our business and then we focus on these decisive actions. So as we said earlier, the capital is really focused on IT and supply chain right now.

不會。我們發布的資本支出指南考慮了我們在供應鏈轉型方面採取的行動。我們將更加關注我們的資本支出，並確保我們投資於推動我們業務的正確事物，然後我們專注於這些決定性的行動。正如我們之前所說，目前資本真正關注的是IT和供應鏈。

Yes, I'll just jump in there. The supply chain transformation is a big one. I think Ryan's got our guide exactly where it should be for '24. We could raise it in '25. And we'll feel either through the proceeds from Worldpac or just as the business performed better and we're able to deploy more, again, back to the previous questions, if we can accelerate or wherever we can accelerate the supply chain consolidation, we'll do it.

是的，我就跳進去。供應鏈轉型是一項重大轉型。我認為 Ryan 已經把我們的指南放在了 24 年應該在的地方。我們可以在 25 年提高它。我們會感覺到，無論是透過 Worldpac 的收益，還是隨著業務表現更好，我們能夠部署更多，再次回到前面的問題，如果我們可以加速或在任何可以加速供應鏈整合的地方，我們會做的。

Next question comes from Michael Baker from D.A. Davidson.

下一個問題來自 D.A. 的 Michael Baker。戴維森。

Okay. Great. I just want to follow up on the 38 distribution centers that you talked about. Any -- I'm looking in the case, in past annual reports and everything, and I can't find a breakdown. I know in the past, you used to talk about PDQs, which are the smaller DCs, but can you just tell us, of these 38 DCs, how many do you consider bigger? What are -- what to you is the bigger DC? How many are smaller? Just trying to get a sense of what you're going to go forward with in terms of your big DCs, and what may need to be added to that?

好的。偉大的。我只是想跟進你提到的38個配送中心。任何——我正在查看這個案例、過去的年度報告和所有內容，但我找不到詳細資訊。我知道過去您經常談論PDQ，即較小的DC，但您能否告訴我們，在這38個DC中，您認為有多少個DC較大？對你來說，更大的 DC 是什麼？較小的有幾個？只是想了解您將在大型 DC 方面繼續前進，以及可能需要添加什麼？

Yes. So with the 38, I know it's hard to approach 38. 38 is the Advance and Carquest DC network. So I think in total, we're about 15, which would include the Worldpac as well. So that's -- when we talk about 38, we're specifically talking about the Advance and Carquest DC network.

是的。所以對於38，我知道很難接近38。38是Advance和Carquest DC網路。所以我認為我們總共大約有 15 個，其中也包括 Worldpac。所以，當我們談論 38 時，我們特別談論 Advance 和 Carquest DC 網路。

So we'll give you, in the coming months, a complete breakout of all the facilities. I'm a little reticent to be more specific. Obviously, we've got team members in these DCs. And if their DC is going to be converted into a market hub as we go through that plan, we want to make sure we're staying abreast of keeping them in the loop. So we'll break out the differences.

因此，我們將在接下來的幾個月內為您提供所有設施的全面突破。我有點不願透露更多具體資訊。顯然，我們在這些 DC 中有團隊成員。如果在我們執行該計劃時他們的資料中心將轉變為市場中心，我們希望確保我們能夠及時了解他們的情況。所以我們將打破分歧。

In general, the smaller DCs that are more -- that are appropriate for the market hub conversion came from Carquest, the larger DCs from the Advance model, there's a substantial size footprint difference.

一般來說，適合市場中心轉換的較小 DC 來自 Carquest，較大 DC 來自 Advance 型號，兩者之間存在很大的尺寸佔地面積差異。

We largely think we have the large DC network that we need. Again, we may refine that a little bit in terms of what that national footprint might look like.

我們很大程度上認為我們擁有所需的大型直流網路。同樣，我們可能會根據國家足跡的情況稍微完善一下。

So you had said to a previous question earlier that based on the other guys, somewhere between 8 to 10 to 12 to 14 is the right number of large DCs. And you're saying that you think you have those already from the Advance, the old Advance network, give or take, a couple? I just want to clarify that.

所以你之前在回答之前的問題時說過，根據其他人的說法，大型 DC 的正確數量在 8 到 10 到 12 到 14 之間。你是說你認為你已經從 Advance 舊的 Advance 網路中獲得了這些，給還是拿，一對？我只是想澄清這一點。

Yes, Michael, good job threading some questions and answers together. The 8 to 12 to that 14, that's my experience in the past life, right? If we hired some of the firms that do the work on setting up national infrastructures, and you just say, "hey, I want to have a nationwide distribution network." That's what they're going to tell you. And that's what I've seen, and that's what I've lived. And so I think that's an appropriate range for us. And yes, we largely think we've got the facilities today.

是的，邁克爾，幹得好，將一些問題和答案串連在一起。 8到12到14，這就是我前世的經驗吧？如果我們聘請了一些從事建立國家基礎設施工作的公司，而你只是說，“嘿，我想要擁有一個全國性的分銷網絡。”這就是他們要告訴你的。這就是我所看到的，這就是我所經歷的。所以我認為這對我們來說是一個合適的範圍。是的，我們基本上認為我們今天已經擁有了這些設施。

We're leveraging our current assets, right? We're leveraging our current assets that we have -- we think we have the assets to create the network that we need.

我們正在利用現有資產，對吧？我們正在利用我們現有的資產——我們認為我們擁有創建我們需要的網路的資產。

Yes. If we came to you and said, hey, we got to put 10 new 500 to 1 million square foot DCs up in the United States, you guys can do the math on what those buildings cost and how long that takes. We're trying to do this both more quickly and efficiently using the facilities we have. And a national model might come out and say, "gosh, the DC you have might be marginally better if it was located an hour this way or that way." That's a little bit of the trade-offs we'll make, which is minor in terms of the efficiency drag. But in exchange for the speed and the overall cost effectiveness, that's the right way to go.

是的。如果我們來找你們說，嘿，我們要在美國建造 10 個新的 500 到 100 萬平方英尺的 DC，你們可以計算一下這些建築的成本和需要多長時間。我們正在嘗試利用我們擁有的設施更快、更有效率地做到這一點。一個國家模型可能會出來說：“天哪，如果你的 DC 位於這樣或那樣的一個小時，可能會好一點。”這是我們要做的一點權衡，就效率拖累而言，這是很小的。但以速度和整體成本效益為代價，這才是正確的做法。

Yes. That makes sense. One other -- just from the beginning of the call, if I could clarify. You talked about, you found another $50 million from -- to get to frontline employees from sunsetting things. What is that? And I guess on a year-over-year basis, is that an incremental $50 million investment? Or is that netted somewhere?

是的。這就說得通了。另一個——從通話一開始，如果我能澄清一下的話。你談到，你還找到了另外 5,000 萬美元，用於幫助第一線員工解決問題。那是什麼？我想，與去年同期相比，這是否會增加 5,000 萬美元的投資？還是在某個地方被捕獲的？

Yes. So I'll make the math easy. The $150 million is out. We took out $150 million. And then we said, "hey, we're going to take $50 million of that, and it goes in the frontline, for wages, bonuses and training." There's an incremental amount, roughly double that, that comes from -- some of it are our ordinary course. So we've got our merit plan for the year. But some of it comes from sunsetting. We had some HR programs out there that we spend money on, that weren't directed towards the frontline. So we canceled those programs and we're putting those dollars and do just bonuses and train.

是的。所以我會讓數學變得簡單。 1.5億美元已經花完了。我們拿出了1.5億美元。然後我們說，“嘿，我們將拿出其中的 5000 萬美元，用於一線，用於工資、獎金和培訓。”有一個增量，大約是這個數量的兩倍，其中一些是我們的普通課程。我們已經制定了今年的績效計畫。但其中一些來自日落。我們花錢實施了一些人力資源項目，但這些項目並不是針對前線的。所以我們取消了這些計劃，我們將這些資金投入獎金和培訓。

So it's no net -- it's no incremental drag to the company. It's a better use of funds that we were putting in the right place.

所以它不是淨的——不會對公司造成增量拖累。這是我們將資金更好地利用在正確的地方。

The next question comes from Brian Nagel from Oppenheimer.

下一個問題來自奧本海默的布萊恩·內格爾。

So a couple of questions. I guess basically both maybe philosophical in nature. But first off, maybe not totally fair, but Shane, so for those of us who followed Advance for a while, I think we've heard -- we've discussed in the past, with prior management teams, supply chain fixes. So I guess, we're talking a lot about that here as a key component of your view of the business. What's different? I mean, if you look at the -- what you plan to do here for the business, from a supply chain perspective, and in evaluating what has been done in the past, what are really the key differences here?

有幾個問題。我想基本上兩者都可能本質上是哲學的。但首先，也許不完全公平，但Shane，所以對於我們這些關注Advance一段時間的人來說，我想我們已經聽說過——我們過去曾與之前的管理團隊討論過供應鏈修復問題。所以我想，我們在這裡談論了很多這一點，作為您對業務的看法的關鍵組成部分。有什麼不同？我的意思是，如果你從供應鏈的角度來看你計劃為業務做什麼，並評估過去所做的事情，那麼這裡真正的關鍵區別是什麼？

And then my second question in regards to what you have a lot going on here in the near term. How do you balance or how do you think about market share -- because you have a very fragmented sector. But within that sector, you've got a really -- a couple of really strong competitors. So how do you think about maintaining market share amid all these near-term type efforts within the business?

然後我的第二個問題是關於你們近期會發生很多事情。你如何平衡或如何看待市場佔有率——因為你有一個非常分散的部門。但在這個領域，有幾個非常強大的競爭對手。那麼，您如何看待在企業內部所有這些近期類型的努力中保持市場份額？

We'll start with the second question on market share. There's lots of good companies. There's lots of people that we compete with every day. And you quite have some have some notable examples. But there are plenty of smaller companies out there who sell auto parts so we know that we've got to earn our keep every day.

我們將從關於市場佔有率的第二個問題開始。好公司有很多。我們每天都會與很多人競爭。你們確實有一些值得注意的例子。但有很多銷售汽車零件的小公司，所以我們知道我們每天都必須賺錢。

We've put out our guide. We think that's modest. And we know that our engine, as we restarted with this turnaround, we'll take a minute to get a full head of steam.

我們已經發布了指南。我們認為這很溫和。我們知道，當我們透過這次週轉重新啟動時，我們的引擎將需要一分鐘的時間才能充滿動力。

But the industry fundamentals are very good. This is a disciplined industry. By the way, it's an industry that even with the big players, there's still room and runway to grow. By the way, there is just growth that occurs naturally. And so we won't be a share taker, but we're -- first step is to be a shareholder, and I mean that in terms of market share. So that's what we're looking to do. And we don't spend the day thinking "hey, what are the other guys doing?" We think about listening to our customer and when they when they tell us, "hey, if you have this part, and by the way, if you're pricing is this versus that or if you can get it to me in this time frame or I feel good about the relationship, we get the order. So those are the things we focus on. That's what we can control, and that's what gets us to sale. If we do that right and repetitively over time, then the share losses stemmed then we'll start that road back to holding and then gaining share. That's the first part. And then remind me again on the supply chain, Brian?

但行業基本面非常好。這是一個紀律嚴明的行業。順便說一句，這個行業即使有大型企業，仍然有成長的空間和跑道。順便說一句，成長是自然發生的。因此，我們不會成為股東，但我們的第一步是成為股東，我的意思是就市場佔有率而言。這就是我們想要做的。我們不會花一天的時間思考“嘿，其他人在做什麼？”我們考慮傾聽客戶的意見，當他們告訴我們「嘿，如果你有這個零件，順便說一句，你的定價是這樣還是那樣，或者你是否可以在這個時間範圍內把它交給我」或者我對這種關係感覺良好，我們得到了訂單。所以這些是我們關注的事情。這是我們可以控制的，這就是讓我們銷售的原因。如果我們隨著時間的推移正確並重複地這樣做，那麼份額損失然後我們將開始回到控股，然後獲得份額的道路。這是第一部分。然後再次提醒我關於供應鏈的問題，布萊恩？

Yes, I guess real simply, what's different with your plan versus what may have been tried in the past or attempted in the past to rationalize the supply chain in Advance.

是的，我想很簡單，您的計劃與過去可能嘗試過或試圖提前合理化供應鏈的計劃有何不同。

We didn't do it. I think that's the key thing. And we didn't -- if you look at retail distribution models on what it takes to be successful, that wasn't the path we were following, right? We did a cross-banner replenishment model, but we never set out and we should have, right? If you think about when we did the GPI acquisition, any time you put 2 companies together, the first thing you got to think about is what are you going to do with the logistics infrastructure?

我們沒有這麼做。我認為這是關鍵。我們沒有——如果你看看零售分銷模式如何才能取得成功，你會發現這不是我們所遵循的道路，對吧？我們做了跨旗幟的補貨模式，但是我們從來沒有出發，我們應該有，對吧？如果你想想我們收購GPI的時候，任何時候你把兩家公司放在一起，你首先要考慮的是你要如何處理物流基礎設施？

Any time you put 2 companies together, the first thing you got to think about is what are you going to do with the logistics infrastructure? And so we let 2 different models exist for a long time and then had sort of a patch solution. And what we're telling the market today is the right answer for auto parts distribution is to have one single national network. And that's what we're doing. And so you won't be able to identify facilities in terms of that's a blue versus red [EG] Carquest versus Advance. We're Advance Auto Parts, and we will have a national distribution network. The second thing is the idea of using this market hub. And I think you see that probably. It's -- I think it's a good way to get product closer to the more SKUs closer to the customer to be more responsive. And I think that's a function -- that's a bit of an evolution. I think the customers' expectations have increased in terms of what can you get me in a short time frame. We want to be participative in that, and that market hub makes that happen.

每當你將兩家公司放在一起時，你首先要考慮的是你將如何處理物流基礎設施？因此，我們讓兩種不同的模型長期存在，然後有了某種補丁解決方案。我們今天告訴市場的是，汽車零件分銷的正確答案是擁有一個全國網路。這就是我們正在做的事情。因此，您將無法根據藍色與紅色 [EG] Carquest 與 Advance 來識別設施。我們是 Advance Auto Parts，我們將擁有一個全國性的分銷網絡。第二件事是利用這個市場中心的想法。我想你可能會看到這一點。我認為這是一個好方法，可以讓產品更接近更多的 SKU，更接近客戶，從而提高反應速度。我認為這是一種功能——這是一種進化。我認為客戶對於在短時間內能為我提供什麼服務的期望有所提高。我們希望參與其中，而這個市場中心可以實現這一目標。

The next question is from Scot Ciccarelli from Truist.

下一個問題來自 Truist 的 Scot Ciccarelli。

So you talked about 400 teammates that are now gone, but can you provide more color on where you're able to take out $150 million of expenses from your cost structure. It's a pretty big number in a short period of time. And related to that, have you factored in some sort of negative impact on sales? Like, in theory, the people there were doing at least something semi-productive?

您談到了現在已經離開的 400 名隊友，但您能否提供更多資訊來說明如何從成本結構中扣除 1.5 億美元的費用。在短時間內這是一個相當大的數字。與此相關，您是否考慮了對銷售的某種負面影響？就像從理論上講，那裡的人們至少在做一些半生產力的事情？

So the cost takeout was broad-based. So no functional area was exact. And if I go back to an earlier comment, I think we had a bit of a headquarters-centric approach to running the business. And with that, you end up with low in your corporate infrastructure. I believe in the inverted pyramid, the idea that we need to be field first, and corporate needs to be lean. Corporate needs to be everybody who sits in a corporate seat needs to be supporting the field. And so we went across the functional areas. I think notably, marketing was an area where there were more significant cuts than in the other areas because we invested in marketing programs that didn't have a yield. And so we view that cost takedown not only as necessary, but one that didn't dampen our sales -- if anything, I think we've got the opposite going out as we cleared out some bureaucracy. We booked at processes that were inefficient, and we're empowering the front line. And as we take dollars and put it in the front line and reduce turnover and create energy, those team members feel like they're heard and supported in a way that wasn't occurring.

因此，成本削減是廣泛的。所以沒有一個功能區是準確的。如果我回到之前的評論，我認為我們採用了一種以總部為中心的方式來經營業務。這樣一來，您的公司基礎設施就會很低。我相信倒金字塔，也就是我們需要先行、企業需要精實的理念。企業需要讓坐在企業席位上的每個人都需要支持該領域。我們就這樣跨越了各個功能區。我認為值得注意的是，行銷是一個比其他領域削減幅度更大的領域，因為我們投資了沒有收益的行銷計劃。因此，我們認為降低成本不僅是必要的，而且不會影響我們的銷售——如果有的話，我認為當我們清除一些官僚機構時，我們得到了相反的結果。我們預訂了效率低下的流程，並且我們正在為前線提供支援。當我們把錢投入到第一線並減少人員流動並創造能量時，這些團隊成員會感覺自己得到了傾聽和支持，而這種方式並沒有發生。

Okay. So you don't think you'll lose any sale from the reduction in marketing. Shane, one other question. Are there more restatements to historical results? And anything on '23 we should be thoughtful of before some of the new team on the finance side came in?

好的。因此，您認為行銷活動的減少不會造成任何銷售損失。謝恩，還有一個問題。是否有更多歷史結果的重述？在財務方面的一些新團隊加入之前，我們應該考慮 23 年的哪些事情？

Are you saying more than what actually is being reported today?

您所說的內容是不是比今天實際報道的內容還要多？

Correct.

正確的。

Yes. No, I think what we're talking about today is -- what we've shared today are the restatements that we plan to see in the Form 10-K. We'll have the Form 10-K out in short order. It should be within that extension period of time.

是的。不，我認為我們今天討論的是——我們今天分享的是我們計劃在 10-K 表格中看到的重述。我們很快就會收到 10-K 表格。應該是在這個延長的時間內。

Got it. Okay. So no more restatement there so on results.

知道了。好的。因此，不再對結果進行重述。

None.

沒有任何。

Our next question comes from Max Rakhlenko from Cowen.

我們的下一個問題來自 Cowen 的 Max Rakhlenko。

Great. So first, how far away are your in-stocks from where they need to be and where you want them to be? I think you mentioned they've improved by 200 basis points. So how much room ahead? And then just how we should think about that timing.

偉大的。首先，您的庫存距離所需的位置和您希望的位置還有多遠？我想你提到他們已經提高了 200 個基點。那麼還有多少空間呢？然後我們應該如何考慮這個時機。

Max, we didn't get the question. Can you say one more time, please?

麥克斯，我們沒有聽清楚問題。請您再說一次好嗎？

Oh sorry, just how far away is your in-stocks from where they need to be? I think you mentioned 200 basis point improvement. So how much further really do you have to go? And then just how should we think about the timing?

哦，抱歉，您的庫存距離需要的位置還有多遠？我想你提到了 200 個基點的改進。那你到底還需要走多遠呢？那我們該如何考慮時機呢？

Yes. So we're doing that real time. And as we complete this -- our inventory system that comes online, it will get better from where it sits today. So I don't want to put a definitive number on it, but that journey continues. We do get customer feedback that says, "hey, I feel better about your product availability. We get feedback from our [quarter] as well. But I don't want to put a pinpoint but more to come, but material progress that has been noted by customers and field team members.

是的。所以我們正在實時進行。當我們完成這個工作時——我們的庫存系統上線了，它將比現在的狀態變得更好。所以我不想給一個明確的數字，但這個旅程仍在繼續。我們確實收到了客戶回饋，「嘿，我對你們的產品可用性感覺更好了。我們也從我們的[季度]得到了回饋。但我不想具體指出，但還會有更多的回饋，但實質性進展已經受到客戶和現場團隊成員的關注。

Yes, I'll just add. I think broad-based. Improvement.

是的，我就補充一下。我認為基礎廣泛。改進。

Absolutely.

絕對地。

Broad-based improvement, but there's still work to do geographically, I think 38 different distribution centers, some are smaller, just the ability to allocate the work. That's the work that we're doing with the new system and being able to get there. So there's still work to do, but broadly a significant improvement.

基礎廣泛的改進，但在地理上仍有工作要做，我認為有 38 個不同的配送中心，有些較小，只是分配工作的能力。這就是我們正在利用新系統所做的工作，並且能夠實現這一目標。因此，仍有工作要做，但總體而言是一個重大改進。

Okay. And then how are you thinking about pricing on the DIFM side and whether you are where you need to be in order to be competitive? And then just latest thinking around private label versus national brands following some of the conversations that you've been having with the Pros?

好的。那麼您如何考慮 DIFM 方面的定價以及您是否處於需要的位置以保持競爭力？然後，根據您與專業人士的一些對話，您對自有品牌與全國品牌的最新思考是什麼？

So I'll start with private label. We think private label is an important dimension of the business. And we've got some great brands that we control. Diehard, I think, is the premier name. The Carquest name. And think about Carquest as it relates to our platinum brakes product. So we've seen growth in private brands and we want private brands to be an important part of the portfolio. I think something we've done is, in the past, sometimes our exuberance as it relates to who we work with, we may have had suppliers not in a position to fully represent what our needs are. We've come through those issues and our merchant and sourcing teams are making sure that we're not only getting high-quality products but we're getting it in the quantities that we need.

所以我將從自有品牌開始。我們認為自有品牌是業務的重要面向。我們擁有一些我們控制的偉大品牌。我認為，頑固分子才是最重​​要的名字。卡奎斯特的名字。考慮一下與我們的鉑金煞車產品相關的 Carquest。因此，我們看到自有品牌的成長，我們希望自有品牌成為產品組合的重要組成部分。我認為我們過去所做的事情是，有時我們的熱情與我們的合作夥伴有關，我們的供應商可能無法完全代表我們的需求。我們已經解決了這些問題，我們的商人和採購團隊正在確保我們不僅獲得高品質的產品，而且獲得我們需要的數量。

On the pricing front, a couple of things here. One, this is a disciplined industry. And I think that's important, the conduct between the players in terms of how the active customers. I describe is rational. But customer feedback is an important dimension. I would say we need to be in the Zip code of the customers' needs on price. But availability is important, as is speed to service. And that's something that we're focused on. We know that if you've got a -- if you're a Pro and you've got a car on a lift, you've got a Chevy Tahoe that needs brake rotors, we've got to get them to you expeditiously. So we're focused on that speed of service, which is something we measure. But as it relates to price, we'll be where the market sort of demands.

在定價方面，有幾件事。第一，這是一個紀律嚴明的行業。我認為，就活躍客戶而言，玩家之間的行為很重要。我的描述是理性的。但客戶回饋是一個重要維度。我想說，我們需要將郵遞區號納入客戶對價格的需求。但可用性很重要，服務速度也很重要。這就是我們關注的重點。我們知道，如果您有一輛需要煞車碟盤的雪佛蘭 Tahoe，如果您是專業人士並且您有一輛汽車在升降機上，我們必須盡快將它們送給您。因此，我們關注的是服務速度，這是我們衡量的內容。但就價格而言，我們將滿足市場的需求。

That is our last question for today. Thank you for joining us. We look forward to sharing more progress on our decisive actions that we covered today when we speak with you again in May. Have a great day.

這是我們今天的最後一個問題。感謝您加入我們。我們期待在五月再次與您交談時分享我們今天討論的果斷行動的更多進展。祝你有美好的一天。

This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝您的出席。現在您可以斷開線路。