American Woodmark Corp (AMWD) 2024 Q1 法說會逐字稿

Good day, and welcome to the American Woodmark Corporation First Fiscal Quarter 2024 Conference Call. Today's call is being recorded, August 29, 2023.

美好的一天，歡迎參加美國 Woodmark Corporation 2024 年第一財季電話會議。今天的通話正在錄音，日期為 2023 年 8 月 29 日。

During this call, the company may discuss certain non-GAAP financial measures included in our earnings release such as adjusted net income, adjusted EBITDA, adjusted EBITDA margin free cash flow, net leverage and adjusted EPS per diluted share. The earnings release, which can be found on our website, americanwoodmark.com, includes definitions of each of these non-GAAP financial measures and the company's rationale for their usage and a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures. We also use our website to publish other information that might be important to our investors such as investor presentations.

在這次電話會議中，公司可能會討論我們收益發布中包含的某些非公認會計準則財務指標，例如調整後淨利潤、調整後EBITDA、調整後EBITDA 利潤率自由現金流、淨槓桿率和調整後稀釋每股收益。收益發布可在我們的網站 americanwoodmark.com 上找到，其中包括每項非 GAAP 財務指標的定義以及公司使用這些指標的理由，以及這些非 GAAP 財務指標與最具可比性 GAAP 財務指標的調節表措施。我們還使用我們的網站發布對我們的投資者可能重要的其他信息，例如投資者介紹。

We will begin the call by reading the company's safe harbor statement under the Private Securities Litigation Reform Act of 1995. All forward-looking statements made by the company involve material risks and uncertainties and are subject to change based on factors that may be beyond the company's control. Accordingly, the company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission and the annual report to shareholders. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. I would now like to turn the call over to Paul Joachimczyk, Senior Vice President and CFO. Please go ahead, sir.

我們將首先閱讀該公司根據1995 年《私人證券訴訟改革法案》發布的安全港聲明。該公司做出的所有前瞻性聲明都涉及重大風險和不確定性，並且可能會因超出該公司預期範圍的因素而發生變化。控制。因此，公司的未來業績和財務業績可能與任何此類前瞻性陳述中明示或暗示的業績和財務業績存在重大差異。這些因素包括但不限於公司向美國證券交易委員會提交的文件以及向股東提交的年度報告中描述的因素。即使經驗或未來的變化明確表明其中明示或暗示的任何預計結果將無法實現，公司也不承諾公開更新或修改其前瞻性陳述。我現在想將電話轉給高級副總裁兼首席財務官 Paul Joachimczyk。請繼續，先生。

Good afternoon, and welcome to American Woodmark's first fiscal quarter conference call. Thank you for taking the time today to participate. Joining me is Scott Culbreth, President and CEO. Scott will begin with a review of the quarter, and I'll add additional details regarding our financial performance. After our comments, we'll be happy to answer your questions.

下午好，歡迎參加美國伍德馬克第一財季電話會議。感謝您今天抽出時間參加。與我一起的是總裁兼首席執行官斯科特·卡爾布雷斯 (Scott Culbreth)。斯科特將首先回顧本季度，我將添加有關我們財務業績的更多詳細信息。發表評論後，我們將很樂意回答您的問題。

Thank you, Paul, and thanks to everyone for joining us today for our first fiscal quarter earnings call. Our teams delivered net sales of $498.3 million, representing a decline of 8.2% versus the prior year. Within new construction, our business declined 6.4% versus prior year. Builders continue to buy down rates to drive sales and are shifting to our ready-to-move-in build strategy. Cancellations are holding in more historic norms in the 14% to 16% range.

謝謝保羅，也感謝大家今天參加我們的第一個財政季度財報電話會議。我們的團隊實現淨銷售額 4.983 億美元，比上年下降 8.2%。在新建工程中，我們的業務比去年下降了 6.4%。建築商繼續降低價格以推動銷售，並轉向我們準備入住的建築策略。取消預訂的比例保持在 14% 至 16% 的歷史水平。

The long-term fundamentals of the market remain strong, and there continues to be a deficit in the number of homes built following short of household formations. We plan to continue to grow our share with new and existing customers. Looking at remodel, which includes our home center and independent dealer and distributor businesses, revenue declined 9.5% versus the prior year. Within this, our home center business was down 12.8% versus the prior year. Demand trends have slowed for our made-to-order and stock kitchen business due to lower in-store traffic rates and consumers are choosing smaller-sized projects. Our stock bath business was positively impacted by a promo versus the prior year, but that was more than offset by inventory destocking efforts at our customers.

市場的長期基本面仍然強勁，而且由於家庭組建不足而建造的房屋數量仍然短缺。我們計劃繼續增加新老客戶的份額。從改造來看，其中包括我們的家居中心以及獨立經銷商和分銷商業務，收入比上年下降了 9.5%。其中，我們的家居中心業務比上年下降了 12.8%。由於店內客流量下降以及消費者選擇較小規模的項目，我們的定制和庫存廚房業務的需求趨勢已經放緩。與上一年相比，我們的湯浴業務受到促銷活動的積極影響，但這被我們客戶的庫存去庫存努力所抵消。

With regards to our dealer/distributor business, we were up 0.1% versus the prior year. Incoming order trends improved at the end of the prior fiscal quarter, allowing for stronger shipments in the first -- in the fiscal first quarter. Our adjusted EBITDA increased 33% to $75.2 million or 15.1% for the quarter. Reported EPS was $2.28, and adjusted EPS was $2.78. The improvement in performance is due to pricing, better matching inflationary impacts, mix and improved efficiencies in the manufacturing platforms. Our ops team continues to drive excellence in our plans.

至於我們的經銷商/分銷商業務，我們比上一年增長了 0.1%。上一財季末的新訂單趨勢有所改善，使得第一財季的出貨量有所增加。本季度調整後 EBITDA 增長 33%，達到 7520 萬美元，即 15.1%。報告每股收益為 2.28 美元，調整後每股收益為 2.78 美元。業績的改善得益於定價、更好地匹配通脹影響、混合以及製造平台效率的提高。我們的運營團隊繼續推動我們計劃的卓越發展。

Our cash balance was $89.7 million at the end of the first fiscal quarter, and the company has access to an additional $323.2 million under its revolving credit facility.

截至第一財季末，我們的現金餘額為 8970 萬美元，公司還可以根據其循環信貸額度獲得額外的 3.232 億美元。

Leverage was reduced to 1.9x adjusted EBITDA, and the company repurchased 328,000 shares in the quarter. Our outlook for fiscal year '24 assumed market declines in both new construction and repair and model. And our view has not changed, but we do view repair and model demand is softer versus our original outlook with slightly better demand in new construction. Our expectation for sales remains unchanged with a low double-digit decline. Due to the strong fiscal first quarter performance, our adjusted EBITDA expectation is increasing to a range of $225 million to $245 million. Our team continues to execute against our strategy that has 3 main pillars: growth, digital transformation and platform design.

槓桿率降至調整後 EBITDA 的 1.9 倍，公司在本季度回購了 328,000 股股票。我們對 24 財年的展望假設新建、維修和模型市場均出現下滑。我們的觀點沒有改變，但我們確實認為維修和模型需求比我們最初的預期要軟，新建築的需求略好。我們對銷售的預期保持不變，降幅為兩位數。由於第一財季表現強勁，我們調整後的 EBITDA 預期將增至 2.25 億美元至 2.45 億美元之間。我們的團隊繼續執行我們的戰略，該戰略具有三大支柱：增長、數字化轉型和平台設計。

Growth is benefiting from our summer launch that included several new finishes and new door styles, enhancements to our internal organization accessories within our made-order platform. Digital transformation efforts over the last fiscal quarter include the conclusion of our global design workshops for the next implementation area of ERP and Monterrey go-live. Our CRM tool went live in August across the remodel channel and will be followed by the new construction channel in September. Platform design work is accelerating with over 70% of the wall panels installed in Monterrey, Mexico, and all of the wall panels are installed in Hamlet, North Carolina. We expect both sites to be on our roof in the next 60 days.

增長得益於我們夏季推出的產品，其中包括幾種新的飾面和新的門樣式，以及我們定制平台中內部組織配件的增強。上一財季的數字化轉型工作包括結束 ERP 下一個實施領域的全球設計研討會以及蒙特雷的上線。我們的 CRM 工具於 8 月在改造渠道上線，隨後將在 9 月在新建渠道上線。平台設計工作正在加速，超過 70% 的牆板安裝在墨西哥蒙特雷，所有牆板都安裝在北卡羅來納州哈姆雷特。我們預計這兩個站點將在未來 60 天內出現在我們的屋頂上。

As a reminder, this expansion will deliver additional capacity in our stock kitchen and bath cabinetry product lines.

謹此提醒，此次擴建將為我們的廚房和浴室櫥櫃庫存產品線提供額外的產能。

In closing, I'm proud of what our team has accomplished in the first fiscal quarter, and I look forward to their continuing contributions during fiscal year '24.

最後，我對我們的團隊在第一財季取得的成就感到自豪，並期待他們在 24 財年繼續做出貢獻。

I will now turn the call back over to Paul for additional details on the financial results for the quarter.

我現在將把電話轉回給保羅，以獲取有關本季度財務業績的更多詳細信息。

Thank you, Scott. Net sales for the first quarter of fiscal year 2024 were $498.3 million, representing a decrease of 8.2% over the same period last year. The combined home center and independent dealer and distributor net sales decreased 9.5% for the first fiscal quarter, with home centers decreasing 12.8% and dealer distributor increasing 0.1%.

謝謝你，斯科特。 2024財年第一季度淨銷售額為4.983億美元，較上年同期下降8.2%。第一財季家居中心和獨立經銷商及分銷商的淨銷售額合計下降 9.5%，其中家居中心下降 12.8%，經銷商分銷商增長 0.1%。

New construction net sales decreased to 6.4% in the first fiscal quarter compared to the prior year. The company's gross profit margin for the first quarter of fiscal year 2024 was 22%, of net sales versus 16% reported in the same quarter of last year, representing a 600 basis point improvement. Gross margin in the first quarter of the current fiscal year was positively impacted by our pricing, better matching inflationary impacts, operational improvements in our manufacturing facilities and stability in the supply chain, partially offset by the $4.9 million tariff charge incurred within the quarter. As we discussed in our previous earnings call, we are returning to our normal performance cycles for our fiscal Q1 and Q4 are at higher performance levels due to the seasonality of our industry.

第一財季新建築淨銷售額與上年同期相比下降至 6.4%。該公司 2024 財年第一季度的淨銷售額毛利率為 22%，而去年同期為 16%，提高了 600 個基點。本財年第一季度的毛利率受到我們的定價、更好地匹配通脹影響、製造設施運營改善以及供應鏈穩定性的積極影響，但部分被本季度產生的 490 萬美元關稅費用所抵消。正如我們在之前的財報電話會議中討論的那樣，由於我們行業的季節性，我們正在恢復正常的業績週期，第一季度和第四季度的業績水平較高。

Total operating expenses exclusive of any restructuring charges was 12% of net sales in the first quarter of fiscal year 2024 compared with 10.3% of net sales for the same period of fiscal year 2023. The ratio increased 170 basis points due to increases in our incentives, profit sharing and digital spend. Adjusted net income was $46.2 million or $2.78 per diluted share in the first quarter of fiscal year 2024 versus $28.4 million or $1.71 per diluted share last year.

2024 財年第一季度，不包括任何重組費用的總運營費用占淨銷售額的12%，而2023 財年同期則占淨銷售額的10.3%。由於激勵措施的增加，該比率增加了170 個基點、利潤分享和數字支出。 2024 財年第一季度調整後淨利潤為 4620 萬美元，即稀釋後每股收益 2.78 美元，而去年為 2840 萬美元，即稀釋後每股收益 1.71 美元。

Adjusted EBITDA for the first quarter of fiscal year 2024 was $75.2 million or 15.1% of net sales compared to $56.5 million or 10.4% of net sales for the same quarter of the prior fiscal year, representing a 470 basis point improvement year-over-year and matching the performance gain that we had in our fourth fiscal quarter of fiscal year 2023. Commerce made a final determination in the plywood case and the company's 2 vietnamese plywood suppliers were included. Within the quarter, we took a $4.9 million pretax charge. We plan to vigorously appeal the determination. However, this will take time to recover. For context, our last order with new supplier was placed in June of 2022.

2024 財年第一季度調整後 EBITDA 為 7520 萬美元，占淨銷售額的 15.1%，而上一財年同一季度為 5650 萬美元，占淨銷售額的 10.4%，同比提高 470 個基點與我們在2023 財年第四財季的業績增長相匹配。商務部對膠合板案做出了最終裁決，該公司的2 家越南膠合板供應商也被納入其中。本季度內，我們收取了 490 萬美元的稅前費用。我們計劃對這一決定提出強烈上訴。然而，這需要時間才能恢復。就上下文而言，我們與新供應商的最後一份訂單是在 2022 年 6 月下的。

The strong performance this year is a direct result of the hard work and efforts our team have put into reestablishing our operating efficiencies, stabilizing our supply chain and controlled spending in the SG&A functions, offset by increases in our incentive compensation, profit sharing and the $4.9 million pretax tariff charge. Free cash flow totaled a positive $72.5 million for the current fiscal year compared to $32.7 million in the prior year. The $39.8 million increase in free cash flow was primarily due to changes in our operating cash flows, specifically higher net income and lower inventories.

今年的強勁業績是我們團隊為重建運營效率、穩定供應鍊和控制 SG&A 職能支出而付出的辛勤工作和努力的直接結果，但被我們的激勵薪酬、利潤分享和 4.9 美元的增加所抵消。稅前徵收關稅萬元。本財年自由現金流總計為正 7,250 萬美元，而上一年為 3,270 萬美元。自由現金流增加 3980 萬美元，主要是由於我們經營現金流的變化，特別是淨利潤的增加和庫存的減少。

Net leverage was 1.09x adjusted EBITDA at the end of the first quarter -- first fiscal quarter 2024, representing a 1.71x improvement from the 2.8x in the prior fiscal year. As of July 31, 2023, the company had $89.7 million of cash and cash equivalents on hand, plus access to $323.2 million of additional availability under its revolving facility. Under the current share repurchase program, the company purchased 22.1 million or 328,000 shares in the first quarter, representing about 2% of outstanding shares being retired. The remaining share repurchasing authorization is $52.9 million.

2024 年第一財季第一季度末，淨槓桿率為 1.09 倍，調整後 EBITDA 為 1.09 倍，較上一財年的 2.8 倍提高了 1.71 倍。截至 2023 年 7 月 31 日，該公司手頭有 8970 萬美元的現金和現金等價物，加上其循環貸款下的 3.232 億美元的額外可用資金。根據目前的股票回購計劃，該公司在第一季度購買了 2,210 萬股或 328,000 股股票，約佔已退役流通股的 2%。剩餘的股份回購授權為 5290 萬美元。

Our outlook for fiscal year 2024 remains unchanged from a net sales perspective. And we continue to expect low double-digit declines in net sales versus fiscal year 2023. The change in net sales is highly dependent upon overall industry economic growth trends material constraints, labor impacts, interest rates and consumer behaviors. Our EBITDA expectation for fiscal year 2024 is being increased $20 million from our prior outlook to a range of $225 million to $245 million. The increase in our expected outlook is due to the stabilized operational performance and the positive start we had to our fiscal year 2024.

從淨銷售額的角度來看，我們對 2024 財年的展望保持不變。我們繼續預計，與 2023 財年相比，淨銷售額將出現兩位數的小幅下降。淨銷售額的變化高度依賴於整體行業經濟增長趨勢、材料限制、勞動力影響、利率和消費者行為。我們對 2024 財年的 EBITDA 預期從之前的預期上調了 2000 萬美元，至 2.25 億美元至 2.45 億美元之間。我們上調預期前景的原因是穩定的運營業績以及 2024 財年的良好開局。

Reiterating our outlook from the past quarter, we are still on track for starting our new operational locations in Hamlet, North Carolina, and Monterrey, Mexico this fiscal year. This will negatively impact the results as we have -- as we will be incurring the operational expenses without offsetting full revenue performance of those locations. The total impact of these charges is approximately $8.1 million in the full fiscal year of 2024.

重申我們對上一季度的展望，我們仍有望在本財年在北卡羅來納州哈姆雷特和墨西哥蒙特雷開設新的運營地點。這將對我們的業績產生負面影響，因為我們將承擔運營費用，而不會抵消這些地點的全部收入表現。這些費用在 2024 年整個財年的總影響約為 810 萬美元。

Our capital allocation priorities for fiscal year 2024 remain unchanged. We will first be focused on investing back into the business for the plant expansions in Monterrey, Mexico, Hamlet, North Carolina and continuing our path on our digital transformation with investments in our ERP and CRM solutions. And lastly, investing in our automation efforts.

我們 2024 財年的資本配置優先事項保持不變。我們將首先重點投資於墨西哥蒙特雷和北卡羅來納州哈姆雷特的工廠擴建業務，並通過投資 ERP 和 CRM 解決方案繼續我們的數字化轉型之路。最後，投資我們的自動化工作。

Next, we'll continue our share repurchasing. As a reminder, we still have $52.9 million remaining. And lastly, we have our debt position at a leverage ratio we wanted to achieve, and we will be deprioritizing paying net debt in fiscal year 2024.

接下來，我們將繼續進行股票回購。提醒一下，我們還剩下 5,290 萬美元。最後，我們的債務頭寸達到了我們想要達到的槓桿率，我們將不再優先考慮在 2024 財年支付淨債務。

In closing, the business continues to build off the progress made through the past fiscal year. We fully expect these improvements to read through the financials throughout this year. This is a testament to the commitment, hard work and efforts our employees invest in the company to achieve our results and the direct alignment to the GDP strategy. I'm grateful for what the team has accomplished and thank all of our team members at American Woodmark for their continued efforts. They are the ones who make it happen daily.

最後，該業務繼續在上一財年取得的進展的基礎上繼續發展。我們完全期望這些改進能夠貫穿今年的財務狀況。這證明了我們的員工為實現我們的成果而對公司投入的承諾、辛勤工作和努力，以及與 GDP 戰略的直接一致性。我對團隊所取得的成就表示感謝，並感謝 American Woodmark 的所有團隊成員的持續努力。他們是讓這一切每天發生的人。

This concludes our prepared remarks. We'll be happy to answer any questions you have at this time.

我們準備好的發言到此結束。我們很樂意回答您此時提出的任何問題。

(Operator Instructions). At this time, Our first question comes from Julio Romero with Sidoti & Company.

（操作員說明）。目前，我們的第一個問題來自 Sidoti & Company 的 Julio Romero。

So I guess can you maybe start on the sales guide, you talked about a little bit better new construction outlook, but a little bit worse R&R outlook. Can you just talk about the repair and remodel side? You mentioned smaller-sized projects. Does that just mean you're selling less volume per home remodel? And maybe just talk about what's driving lower in-store traffic rates?

所以我想你可以從銷售指南開始，你談到了更好的新建築前景，但更糟糕的 R&R 前景。您能簡單談談維修和改造方面嗎？您提到了較小規模的項目。這是否意味著您每次房屋改造的銷量會減少？也許只是談談是什麼導致店內客流量下降？

Sure. I'll take just a couple of questions in there. Let's first talk about our expectations as we think about calendar year '23, I don't want to step into '24 yet at this point. But certainly, we're expecting to see sales decline in both channels. I would say the range for single-family starts has widened from high single digits to low double digits, depending on the source, and they're looking at starts data that just came out January to July, we averaged down 17%. Nationally with July of 10. And then remodel, it's been trending in that mid-single-digit range. Home centers just reported in the last 2 weeks. They shared an outlook of down mid-single digits. And in their most recent quarter showed that our particular category was performing below the average store comp.

當然。我會在那裡回答幾個問題。讓我們首先談談我們對 23 年的期望，我現在還不想進入 24 年。但可以肯定的是，我們預計這兩個渠道的銷售額都會下降。我想說的是，單戶住宅的開工率範圍已經從高個位數擴大到低兩位數，具體取決於來源，他們正在查看1 月至7 月剛剛發布的開工數據，我們平均下降了17 %。全國范圍內，7 月 10 日。然後改造，它的趨勢一直在中個位數範圍內。家庭中心剛剛報告了過去兩週的情況。他們的共同看法是下降中個位數。在最近一個季度，我們的特定類別的表現低於商店的平均水平。

They did attribute that to 2 factors: one, slowing traffic in the outlets and then also just smaller jobs. So we're taking all that into consideration as we look at our business and projections going forward. We just think it's a reallocation between the 2 channels for us, but ultimately, the same sales guide we had last quarter.

他們確實將其歸因於兩個因素：一是門店客流量放緩，二是工作崗位減少。因此，當我們審視未來的業務和預測時，我們會考慮所有這些因素。我們只是認為這對我們來說是兩個渠道之間的重新分配，但最終，我們的銷售指南與上季度相同。

Okay. I appreciate the color there. And then just wanted to ask about the free cash flow figure, which was pretty impressive for the first quarter. Maybe what's your sense of inventory levels today? Should they continue to trend lower? And just how do you think about free cash flow overall for the rest of the year?

好的。我很欣賞那裡的顏色。然後只想問一下自由現金流數字，第一季度的數字相當令人印象深刻。也許您對今天的庫存水平有何感覺？他們應該繼續走低嗎？您如何看待今年剩餘時間的總體自由現金流？

Yes. Julio, really, we have our inventories kind of starting to get stabilized. We still have room for improvement in that, and we're not going to continue our efforts on those avenues free cash flow started off much stronger than we anticipated in the first part of the year, primarily due to our outperformance. But also, we have some delays still in regards to our manufacturing facilities coming online with the OEMs, not from a lack of desire to do these projects, but just timing of that. But we will have a strong free cash flows for the year.

是的。胡里奧，確實，我們的庫存開始趨於穩定。我們在這方面仍有改進的空間，我們不會繼續在這些途徑上努力，自由現金流開始時比我們在今年上半年的預期要強得多，這主要是由於我們的表現出色。而且，我們的製造設施在與原始設備製造商一起上線方面仍然存在一些延遲，這並不是因為缺乏執行這些項目的願望，而只是因為時間安排。但今年我們將擁有強勁的自由現金流。

Our next question comes from Adam Baumgarten with Zelman.

我們的下一個問題來自 Adam Baumgarten 和 Zelman。

I guess just on the input cost side. I don't know if you guys touched on that, but just kind of what you're expecting for the balance of the fiscal year?

我想只是在投入成本方面。我不知道你們是否談到了這一點，但你們對本財年的剩餘時間有何期望？

Yes. On the inflation side, at this point, we are seeing relief in hardwood lumber specifically. So we've seen declines there. But we still see upward pressure on other categories from a year-over-year standpoint, such as plywood, paint and hardware. Certainly, labor, right, continues to be an increasing input cost along with domestic transportation. Don't see that changing materially between now and the end of the calendar year, even really the end of our fiscal year.

是的。在通脹方面，目前我們看到硬木木材有所緩解。所以我們看到了那裡的下降。但從同比的角度來看，我們仍然看到其他類別面臨上行壓力，例如膠合板、油漆和硬件。當然，勞動力和國內運輸一起繼續成為不斷增加的投入成本。從現在到日曆年年底，甚至到我們的財政年度結束，這種情況不會發生重大變化。

Okay. Got it. And then just on the softness in the on the R&R side, just kind of maybe talk about promotional activity and how that's trending.

好的。知道了。然後，就 R&R 方面的疲軟情況而言，也許可以談談促銷活動及其趨勢。

Yes. We've seen a slight uptick in promo activity. I think we messaged the same last quarter, again, principally in the remodel channel, so both in the dealer distributor space as well as the home center. So a slight uptick, but nothing of concern.

是的。我們發現促銷活動略有增加。我認為我們上個季度再次傳達了同樣的信息，主要是在改造渠道，因此無論是在經銷商分銷空間還是家居中心。所以略有上升，但沒什麼可擔心的。

So like kind of back to normal, is it a good way to think about it?

那麼就像回歸正常一樣，這是一個很好的思考方式嗎？

I still would say it's below the historic norm.

我仍然會說它低於歷史正常水平。

Next question comes from Steven Ramsey with Thompson Research Group.

下一個問題來自湯普森研究小組的史蒂文拉姆齊。

On gross margins being strong again for the second consecutive quarter, you called out the drivers there. Could you maybe walk through the order of magnitude on the drivers helping gross margin in the quarter? And then maybe just order of magnitude, how you see that evolving going through the rest of the year on those drivers?

由於毛利率連續第二個季度再次強勁，您指出了驅動因素。您能否介紹一下推動本季度毛利率的因素的數量級？然後，也許只是一個數量級，您如何看待這些驅動因素在今年剩餘時間裡的演變？

Yes, Steven, good question. Really, we talked about pricing better matching inflation. So we really have caught up to that kind of commentary that's out there. So from our first from a magnitude perspective, that is the first and foremost that's out there. Then you look at the other opportunities that are out there, operational efficiencies, really matching better from we did the stability of supply chain. Those 2 work hand in hand, so as our supply chain really stabilized, it does allow our operations to get back to their normal operating cadences which increases our overall plant efficiencies. And those are the, I'd say, kind of stack 1 and then 2 with those 2 being combined together.

是的，史蒂文，好問題。確實，我們討論了更好地匹配通貨膨脹的定價。所以我們確實已經了解了這種評論。因此，從我們首先從規模角度來看，這是首要的。然後你看看其他的機會，運營效率，確實與我們供應鏈的穩定性更好地匹配。這兩者齊頭並進，因此當我們的供應鏈真正穩定時，它確實使我們的運營恢復到正常的運營節奏，從而提高了我們工廠的整體效率。我想說的是，這些是堆棧 1，然後是堆棧 2，這 2 個堆棧組合在一起。

Then the only thing I would add to that is just on the pricing piece, I would tell you that we've really lapped the increases that we put into the business a year ago. So we're not expecting additional gains in pricing to benefit year-over-year going forward.

那麼我唯一要補充的就是定價部分，我想告訴你，我們確實已經完成了一年前投入業務的增長。因此，我們預計未來的定價不會有額外的增長。

Okay. Helpful. And then on the new facilities cost of about $8 million this year, is that a pressure that steps down or goes away completely as the markets normalize over the next year or so, or maybe kind of talk to the outlook on that spend.

好的。有幫助。然後，今年新設施的成本約為 800 萬美元，隨著市場在未來一年左右恢復正常，這種壓力會減弱或完全消失，或者可能與該支出的前景有關。

Yes. It's basically the ramp-up and start-up cost. You start paying a lease and you don't have it fully utilized. So we'll take that charge this year as an impact. And then our expectation is that we do start to better utilize and leverage both of those facilities going forward.

是的。這基本上是啟動和啟動成本。您開始支付租金，但尚未充分利用它。因此，今年我們將把這一指控視為一種影響。我們的期望是，我們確實開始更好地利用和利用這兩個設施。

Your next question comes from Collin Verron with Jefferies.

您的下一個問題來自 Jefferies 的 Collin Verron。

Great quarter. I just wanted to start with the guide. Backing to some numbers back into a 100 basis point increase in the EBITDA margin from your previous guide. Can you just give us some more detail around what's driving the increase in the margin guide? Is it all operational improvements? Or are you seeing the -- or is it going to be lower raw material costs? Just looking for some more color on the drivers of that.

很棒的季度。我只想從指南開始。回到一些數字，使 EBITDA 利潤率比之前的指南增加 100 個基點。您能否為我們提供更多關於推動利潤指南增加的因素的詳細信息？都是運營方面的改進嗎？或者您是否看到原材料成本會降低？只是尋找更多關於其驅動因素的色彩。

Yes, I'd really take it back to Paul's comment a moment ago. Certainly, the impact of our first quarter being better than what we had modeled and assumed when we gave that outlook a year ago would be a contributor and as he mentioned, pricing was a key piece of that as well as how we run in the factories. As we go forward, we expect to continue to run our factories well. So we think we've got some upside for that, and we've got that factored in to the overall equation. We do expect softer demand as a bit of an offset as we go forward. But when we take all of those considerations together, we're confident with the increase that we've put out there for our range.

是的，我真的想回到保羅剛才的評論。當然，我們第一季度的影響比我們一年前給出展望時所建模和假設的要好，這將是一個貢獻者，正如他提到的，定價以及我們在工廠的運營方式是其中的關鍵部分。隨著我們的前進，我們期望繼續良好地運營我們的工廠。因此，我們認為這有一些好處，並且我們已將其納入整體方程式中。我們確實預計需求疲軟會在我們前進的過程中起到一定的抵消作用。但當我們綜合考慮所有這些因素時，我們對我們的產品系列的增加充滿信心。

Okay. That's helpful. And then in terms of the margin performance through the rest of the year, any help in thinking about that as the shape of the year? And where you see EBITDA margins bottoming?

好的。這很有幫助。然後就今年剩餘時間的利潤率表現而言，將其視為今年的形狀有什麼幫助嗎？您認為 EBITDA 利潤率在哪裡觸底？

So I don't want to get into a quarterly outlook view on really, quite frankly, sales or EBITDA. That's how we give the full year view. The only thing I will comment on specifically is just recall that Q2 a year ago, was by far and away our strongest sales comp in the prior year. Why was that? We made considerable headway in reducing our backlog a year ago. So just as a reminder, that would be a bit of a tailwind as we think about this upcoming quarter fiscal year '24.

因此，坦率地說，我不想對銷售額或 EBITDA 進行季度展望。這就是我們給出全年觀點的方式。我要具體評論的唯一一件事是，請記住，一年前的第二季度是迄今為止我們上一年最強勁的銷售業績。為什麼會這樣？一年前，我們在減少積壓方面取得了相當大的進展。因此，提醒一下，當我們考慮即將到來的 24 財年季度時，這將是一個順風車。

Great. That's helpful color. And then just the last one here for me. You talked about some destocking at the home centers. Can you just talk about how much of a headwind that was for you guys in the quarter? And where you guys think that channel is from an inventory perspective after this quarter?

偉大的。這是有用的顏色。然後是我的最後一個。您談到了家居中心的一些去庫存問題。您能談談本季度對你們來說有多大的阻力嗎？你們認為本季度之後從庫存角度來看該渠道在哪裡？

I have a specific amount that I'll call out for that, Collin, but we believe there's an opportunity at both of our key accounts to see increases in in-store inventory levels to help both the bath, kitchen, quite frankly, even storage category. So our teams work hand in hand with our customers on driving that improvement in stock rates so that we can assure that we get our in-consumers product to be able to purchase.

科林，我有一個具體的金額，但我們相信我們的兩個主要客戶都有機會看到店內庫存水平的增加，以幫助浴室、廚房，坦率地說，甚至存儲類別。因此，我們的團隊與客戶攜手合作，推動庫存率的改善，以便我們能夠確保我們的產品能夠被消費者購買。

(Operator Instructions) Our next question comes from Tim Wojs with Baird.

（操作員說明）我們的下一個問題來自 Baird 的 Tim Wojs。

Maybe just my first question, just on that one of your last answer to Scott, did you say, are these are the tailwind? Did you mean a headwind from inventory kind of your backlog kind of conversion in the prior year last year?

也許只是我的第一個問題，就在你對斯科特的最後一個回答中，你是否說過，這些是順風嗎？您的意思是去年庫存方面的逆風對您的積壓訂單類型的轉換產生了不利影響嗎？

So we had a -- sorry, to clarify that comment, when you compare Q2 to prior year or specifically, prior year had the benefit of being able to chew through a pretty substantial amount of backlog. We will not have that this year. So there's a tailwind last year that doesn't repeat itself this year. Thus, it's a headwind. Sorry for not being clear that first time.

因此，我們有一個 - 抱歉，澄清這一評論，當您將第二季度與前一年進行比較時，或者俱體而言，前一年的好處是能夠消化相當大量的積壓。今年我們不會有這樣的情況。因此，去年的順風今年不會重演。因此，這是一個逆風。抱歉第一次沒說清楚。

No, yes. I just want to make sure I heard that Okay. Got that. And then I guess within your builder business, I mean, is there -- are you seeing any differences in terms of kind of order activity or just kind of the confidence that your builders have based on -- based on the size of the builder. Just trying to think -- I know you do a lot of work with the larger kind of builders. But how would you kind of compare and contrast some of the larger builders to some of the smaller ones?

不，是的。我只是想確保我聽到了 好的。了解。然後我想在你們的建築商業務中，我的意思是，你們是否看到訂單活動類型或建築商所基於的信心方面存在任何差異——基於建築商的規模。只是想一想——我知道您與大型建築商一起做了很多工作。但是您如何比較和對比一些較大的建築商和一些較小的建築商呢？

Yes. All the statements you made are all accurate. So there's a wide range. And it's not only a factor of the builder specifically, Tim, but also the region. So we've seen some weakness out West as of late. That was sort of the last area of the country to start to rotate down. We expect that to come back. So it varies depending on the account, but I would say the larger builders are pretty bullish on their expectations now for the year as opposed to where they were 3 and 6 months ago.

是的。您所做的所有陳述都是準確的。所以範圍很廣。蒂姆，這不僅是建築商的因素，也是地區的因素。所以我們最近看到了西部的一些弱點。那是該國最後一個開始向下旋轉的地區。我們預計這種情況會回來。因此，具體情況因賬戶而異，但我想說，與 3 個月和 6 個月前相比，較大的建築商現在對今年的預期非常樂觀。

Okay. Okay. Good. And then would you think from a lead time perspective, or how we think about kind of lagging starts or kind of comparing to completion. I know with the supply chain that had kind of got out of the lag over the last couple of years. But would you kind of revert back to that kind of 90- to 100-day lag relative to starts now as we kind of think about the new construction market?

好的。好的。好的。然後你會從交貨時間的角度來思考，或者我們如何看待滯後的開始或與完成的​​比較。我知道供應鏈在過去幾年中已經擺脫了滯後狀態。但是，當我們考慮新建築市場時，您是否會回到那種相對於現在開工的 90 到 100 天的滯後狀態？

I wouldn't go all the way back to that historic norm. We certainly saw the increase and Paul would quote that moving up, I think, roughly 30 to 60 days. Over the past couple of years, we certainly hear about that coming down you even see some of the builders report on that specifically at that time to build has shrunk. But I don't think we're back to the historic norms yet. We get still pockets of labor challenges, again, market by market, that's creating some difficulty on builders being able to get the homes to complete status. Then you get weather, things like out West and Southern California that also creates some disruptions in that cycle time.

我不會一路回到那個歷史常態。我們當然看到了增長，保羅會引用這一點，我認為，大約增加了 30 到 60 天。在過去的幾年裡，我們當然聽說過這種情況，甚至看到一些建築商報告稱當時的建築面積已經縮小。但我認為我們還沒有回到歷史常態。我們仍然面臨著勞動力方面的挑戰，逐個市場，這給建築商讓房屋完工帶來了一些困難。然後你會受到天氣的影響，比如西加州和南加州的天氣也會在那個週期時間造成一些干擾。

(Operator Instructions) As I do not see that there is anyone else waiting to ask a question, I would like to turn the line over to Mr. Joachimczyk for any closing comments. Please go ahead, sir.

（操作員說明）由於我沒有看到還有其他人在等待提問，因此我想將線路轉給 Joachimczyk 先生以徵求結束意見。請繼續，先生。

Since there are no additional questions, this concludes our call. Thank you for taking the time to participate.

由於沒有其他問題，我們的通話到此結束。感謝您抽出時間參加。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。