American Woodmark Corp (AMWD) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to the American Woodmark Corporation's second fiscal quarter 2025 conference call. Today's call is being recorded, November 26, 2024.

大家好，歡迎參加美國Woodmark公司2025財年第二季電話會議。今天的通話正在錄音，2024 年 11 月 26 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, the company's rationale for their usage, and a reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures.

在本次電話會議中，公司可能會討論收益報告中包含的某些非GAAP 財務指標，例如調整後的淨收入、調整後的EBITDA、調整後的EBITDA 利潤率、自由現金流、淨槓桿率和調整後的每股攤薄收益。收益報告可在我們的網站 americanwoodmark.com 上找到，其中包括每項非 GAAP 財務指標的定義、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的 GAAP 的對照表。 。

We also use our website to publish other information that may be important to investors, such as investor presentations. We'll begin today's 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.

我們也使用我們的網站發布其他可能對投資者很重要的訊息，例如投資者介紹。今天的電話會議我們將首先宣讀公司根據 1995 年私人證券訴訟改革法案所製定的安全港聲明。公司所做的所有前瞻性陳述都涉及重大風險和不確定性，並且可能因公司無法控制的因素而改變。因此，本公司的未來業績和財務結果可能與此類前瞻性陳述中表達或暗示的業績和財務結果有重大差異。

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.

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和年度股東報告中所述的因素。本公司不承諾公開更新或修改其前瞻性陳述，即使經驗或未來變更清楚地表明其中表達或暗示的任何預測結果都不會實現。

I would now like to turn the call over to Paul Joachimczyk, Senior Vice President and CFO. Please go ahead, sir.

現在我想將電話轉給資深副總裁兼財務長 Paul Joachimczyk。先生，請繼續。

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

你好。早上好，歡迎參加 American Woodmark 第二財季電話會議。感謝您今天抽空參加。和我一起參加的是總裁兼執行長 Scott Culbreth。斯科特將首先回顧本季度，然後我將添加有關我們財務業績的更多詳細資訊。我們發表評論後，會很樂意回答您的問題。史考特？

Thank you, Paul, and thanks to everyone for joining us today for our second fiscal quarter earnings call. Our teams delivered net sales of $452.5 million, representing a decline of 4.5% versus the prior year. This was in line with the expectations we shared last quarter. The year-over-year decline was due to continued softer demand in the remodel market, along with the slowdown in new construction single-family starts over the summer.

謝謝保羅，也謝謝大家今天參加我們的第二財季財報電話會議。我們的團隊實現了 4.525 億美元的淨銷售額，比上年下降 4.5%。這與我們上個季度的預期一致。年比下降的原因是改建市場的需求持續疲軟，以及夏季新建獨棟住宅開工放緩。

Despite Fed rate cuts, mortgage rates were up 60 basis points from the low achieved in late September, which continues to put pressure on existing home sales and new construction activity. In addition, sales of existing home sales fell to a 14-year low last month in October, according to the National Association of Realtors, slowing the demand for remodel projects.

儘管聯準會降息，但抵押貸款利率仍較 9 月底的低點上漲了 60 個基點，這繼續給現房銷售和新屋建設活動帶來壓力。此外，根據全美房地產經紀人協會的數據顯示，10 月現房銷售量跌至 14 年來的最低水平，減緩了改建項目的需求。

Single-family housing starts comped positively in August and September but declined in October due to a slowdown in the Southeast that was impacted by weather. We believe that the Southeast will rebound in future months and that the impacts from favorable starts activity should benefit cabinet installations in future quarters.

8 月和 9 月單戶住宅開工量呈正態勢，但 10 月因天氣原因東南部經濟放緩而下滑。我們相信東南部地區將在未來幾個月反彈，並且良好的開工活動將有利於未來幾季的櫥櫃安裝。

Although net sales were negative for the quarter versus prior year, unit growth for the new construction channel was positive but was more than offset by price mix. Our home center customers continue to be impacted by our interest rates and macroeconomic pressures that lead to weaker spending on projects. This remains more significant for higher-priced discretionary projects like kitchen and bath. We are not experiencing a loss of share with our customers, and our teams remain focused on growing share to our accounts.

雖然本季的淨銷售額與去年同期相比為負，但新建築通路的單位成長為正，但卻被價格組合所抵銷。我們的家居中心客戶繼續受到利率和宏觀經濟壓力的影響，導致專案支出減少。對於廚房和浴室等價格較高的可自由支配項目來說，這一點更為重要。我們的客戶份額並未減少，我們的團隊仍致力於增加客戶份額。

Our belief is that as mortgage rates decline, consumer confidence increases, existing home sales increase [and] the potential for home projects increases. This should serve as a tailwind for our business in the future.

我們相信，隨著抵押貸款利率下降、消費者信心增強、現有房屋銷售增加以及住房項目的潛力增加。這應該會成為我們未來事業的順風。

Our adjusted EBITDA results were $60.2 million or 13.3% for the quarter. Reported EPS was $1.79. Operational excellence improvements and SG&A spending benefits in the quarter were more than offset by lower sales, restructuring costs to rightsize our operations, debt refinancing costs and a mark-to-market entry for [peso] hedging that Paul will cover in his remarks.

本季我們的調整後 EBITDA 業績為 6,020 萬美元，增幅 13.3%。報告每股收益為 1.79 美元。本季的卓越營運改善和銷售、一般及行政開支收益被銷售額下降、為調整營運規模而產生的重組成本、債務再融資成本以及按市價計價的[比索] 對沖所抵消，保羅將在他的講話中介紹這些內容。

Our cash balance was $56.7 million at the end of the second fiscal quarter, and the company has access to an additional $313.2 million under its revolving credit facility. Leverage was at 1.4 times adjusted EBITDA, and the company repurchased 349,000 shares or 2.3% of shares outstanding in the quarter. Our teams did an excellent job of refinancing the company's debt with a slight increase to our interest rate exposure.

在第二財政季末，我們的現金餘額為 5,670 萬美元，且公司可以根據其循環信貸額度額外獲得 3.132 億美元。槓桿率為調整後 EBITDA 的 1.4 倍，公司本季回購了 349,000 股，佔已發行股票的 2.3%。我們的團隊在略微增加利率風險的情況下，出色地完成了公司債務的再融資工作。

Our outlook for the industry in fiscal year '25 assumes the repair and remodel market will be down mid-single digits and new construction to be up low single digits. Within R&R, larger discretionary projects will trend worse than the overall market and are projected to be down high single digits.

我們對 25 財年的行業展望是：修復和改造市場將下降中等個位數，而新建築市場將上漲低個位數。在 R&R 領域，較大的可自由支配項目的趨勢將比整體市場更差，預計將下降個位數。

Our expectation for the company's net sales is unchanged at a low single-digit decrease versus fiscal year 2024. Adjusted EBITDA expectations are targeted in the range of $225 million to $235 million.

我們對該公司淨銷售額的預期保持不變，與 2024 財年相比將出現個位數的低幅下降。調整後的 EBITDA 預期在 2.25 億美元至 2.35 億美元之間。

Our team continues to execute our strategy that has three main pillars: growth, digital transformation, and platform design with a number of key accomplishments over the past quarter. Conversion activity continues with our distribution business as almost 80% of customers have moved to our new brand 1951 Cabinetry.

我們的團隊繼續執行我們的策略，該策略有三大支柱：成長、數位轉型和平台設計，並在過去一個季度取得了許多關鍵成就。我們的分銷業務繼續進行轉換活動，幾乎 80% 的客戶已經轉向我們的新品牌 1951 Cabinetry。

Our teams are also actively pursuing a number of new accounts within the channel. Load-ins are almost complete for the stock bath and kitchen wins I shared last quarter. Digital transformation efforts continue with our teams to optimize in the use of sales force for our sales teams and completing the planning for our ERP go live at our West Coast made to stock facility next year. Platform design work continues with the continued ramp of our Monterrey, Mexico and Hamlet, North Carolina facilities, and automation efforts are progressing well in our mill, component and assembly operations.

我們的團隊也積極尋求該管道內的一些新帳戶。我上個季度分享的庫存浴室和廚房勝利的裝載工作已基本完成。我們團隊繼續進行數位轉型努力，以優化銷售團隊的銷售力使用，並完成 ERP 明年在西海岸庫存工廠上線的規劃。隨著我們位於墨西哥蒙特雷和北卡羅來納州哈姆雷特的工廠不斷擴張，平台設計工作仍在繼續，我們的工廠、零件和組裝業務的自動化工作也進展順利。

In closing, I'm proud of what this team accomplished in the second fiscal quarter and look forward to their continuing contributions during fiscal year '25. I'll now turn the call back over to Paul for additional details on the financial results for the quarter.

最後，我為這個團隊在第二財季的成就感到自豪，並期待他們在 25 財年繼續做出貢獻。現在我將把電話轉回給保羅，以了解有關本季度財務業績的更多詳細資訊。

Thank you, Scott. I'll begin by discussing our second-quarter results and then provide our outlook for the rest of the fiscal year.

謝謝你，斯科特。我將首先討論我們的第二季業績，然後提供本財年剩餘時間的展望。

Net sales were $452.5 million, representing a decrease of $21.4 million or 4.5% versus the prior year. We believe the long-term fundamentals of the housing industry are still sound, but they are currently dampened by persistently high interest rates and lower consumer confidence. This led to the continued softness in the large ticket purchases, primarily impacting our remodel business.

淨銷售額為 4.525 億美元，較上年減少 2,140 萬美元，下降 4.5%。我們認為，房地產行業的長期基本面仍然良好，但目前受到持續高利率和消費者信心下降的抑制。這導致大額票務購買持續疲軟，主要影響了我們的改造業務。

Gross profit as a percent of net sales for the second quarter decreased 290 basis to 18.9% versus 21.8% reported last year. Lower sales volumes impacting our manufacture leverage in our facilities, combined with increasing product input costs around raw materials, labor and customer freight rates. However, these impacts were partially offset by our sustained operating excellence efforts.

第二季毛利佔淨銷售額的百分比下降 290 個百分點至 18.9%，去年同期為 21.8%。銷售量下降影響了我們工廠的製造槓桿，同時原材料、勞動力和客戶運費等產品投入成本增加。然而，這些影響被我們持續的卓越營運努力部分抵消了。

Operating expenses include -- excluding any restructuring charges, were 9.3% of net sales versus 12.2% last year. The 290-basis-point decrease is due to the roll-off of our acquisition-related intangible amortization that ended in December 2023, lower incentive compensation, and controlled spending across all functions, offset by our lower sales.

營業費用（不含重組費用）佔淨銷售額的 9.3%，去年為 12.2%。290 個基點的下降是由於我們於 2023 年 12 月結束的收購相關無形資產攤銷的減少、激勵性薪酬的減少以及所有職能部門支出的控制，但被我們的銷售額下降所抵消。

Adjusted net income was $32 million or $2.08 per diluted share in the second quarter versus $41.1 million or $2.50 per diluted share last year. Within this quarter, we changed our definition of adjusted EPS to exclude the mark-to-market adjustments on our foreign currency hedging to be aligned with our industry and match our adjusted EBITDA definition for exclusions.

第二季調整後淨收入為 3,200 萬美元，即每股攤薄收益 2.08 美元，而去年同期調整後淨收入為 4,110 萬美元，即每股攤薄收益 2.50 美元。在本季度，我們改變了調整後每股收益的定義，以排除外匯對沖的按市價調整，以與我們的行業保持一致，並與調整後的 EBITDA 定義相匹配。

Adjusted EBITDA was $60.2 million or 13.3% of net sales versus $72.3 million or 15.3% of net sales last year, representing a 200-basis-point decline year over year.

調整後 EBITDA 為 6,020 萬美元，佔淨銷售額的 13.3%，而去年同期為 7,230 萬美元，佔淨銷售額的 15.3%，較去年同期下降 200 個基點。

Free cash flow totaled a positive $30.1 million for the current fiscal year to date compared to $109.9 million in the prior year. The $79.8 million decrease was primarily due to changes in our operating cash flows, specifically higher inventory and lower accrued expense balances.

本財年迄今的自由現金流總計為正 3,010 萬美元，而去年同期為 1.099 億美元。7,980 萬美元的減少主要是由於我們的營運現金流的變化，特別是庫存增加和應計費用餘額減少。

Net leverage was 1.4 times adjusted EBITDA at the end of the second quarter compared with 1.05 times last year. Please note that we entered into a new senior secured debt facility on October 10, 2024. The new agreement provides for $500 million revolving loan facility and a $200 million term loan facility.

在第二季末，淨槓桿率為調整後 EBITDA 的 1.4 倍，去年同期為 1.05 倍。請注意，我們於 2024 年 10 月 10 日簽訂了新的優先擔保債務協議。新協議提供 5 億美元的循環貸款和 2 億美元的定期貸款。

As of October 31, 2024, the company had $56.7 million in cash plus access to $313.2 million of additional availability under its revolving facility. Under the current share repurchase program, the company purchased $56.5 million or 620,000 shares in the first half of the fiscal year, representing about 4.1% of the outstanding shares being retired. We have $33 million of share repurchase authorization remaining on our old authorization, plus an additional $125 million that the Board approved this quarter.

截至 2024 年 10 月 31 日，該公司擁有 5,670 萬美元現金，並可利用其循環信貸額度下的 3.132 億美元額外可用資金。根據現行的股票回購計劃，該公司在本財年上半年回購了價值 5,650 萬美元或 620,000 股股票，約佔已回購流通股的 4.1%。我們的舊授權中剩餘 3,300 萬美元的股票回購授權，加上董事會本季批准的額外 1.25 億美元。

Our outlook for fiscal year 2025 remains unchanged. Net sales are expected to be down low single digits versus fiscal year 2024. Reiterating what Scott said before, this assumes the repair remodel market will be down mid-single digits, and new construction will be up low single digits.

我們對 2025 財年的展望保持不變。與 2024 財年相比，淨銷售額預計將下降個位數。重申史考特之前所說的話，這假設修復改造市場將下降中等個位數，而新建築將上漲低個位數。

This is a result of the softer repair and remodel market and a decline in larger ticket remodel purchases across the retailers, partially offset by continued growth in new construction during the back half of the year.

這是由於維修和改造市場疲軟以及零售商大宗改造購買量的下降，但下半年新建築的持續成長部分抵消了這一影響。

Although we don't provide quarterly guidance, I did want to remind you that our Q3 sales are impacted by fewer sales days within the quarter due to the number of holidays that fall within and will be the lowest sales quarter of the fiscal year. However, these assumptions are highly dependent upon overall industry, economic growth trends, material constraints, labor impacts, interest rates and consumer behaviors.

雖然我們不提供季度指導，但我想提醒您，由於假期數量較多，我們的第三季銷售受到本季銷售天數減少的影響，並將成為本財年中銷售最低的季度。然而，這些假設高度依賴整體產業、經濟成長趨勢、材料限制、勞動力影響、利率和消費者行為。

Our projected EBITDA margin for fiscal year 2025 is being revised to a targeted range of $225 million to $235 million, driven primarily by sales volumes retracting and the increased manufacturing deleverage of our facilities. We evaluate our monthly -- pricing monthly and we'll continue to do so on a go-forward basis to mitigate our inflationary impacts on logistics, raw materials, and labor.

我們預計 2025 財年的 EBITDA 利潤率將調整為 2.25 億美元至 2.35 億美元的目標範圍，這主要歸因於銷售量下降和工廠製造去槓桿率提高。我們每月都會評估我們的定價，我們將繼續這樣做，以減輕通膨對物流、原材料和勞動力的影響。

Our capital allocation priorities for fiscal year 2025 remain unchanged. We will first be focused on investing back into the business by continuing our path for our digital transformation with investments in ERP and investing in automation. Next, we'll continue our share repurchasing. And lastly, with our debt agreement in place and the leverage ratio we want to achieve, debt repayments will be deprioritized.

我們對 2025 財年的資本配置重點保持不變。我們將首先專注於對業務進行投資，透過對 ERP 和自動化進行投資，繼續我們的數位轉型之路。接下來我們將繼續進行股票回購。最後，隨著我們的債務協議和我們想要實現的槓桿率的達成，債務償還將被降低優先順序。

In conclusion, our team is dedicated to making it happen every day. Our operational improvements that have been put in place over the past year plus have helped us mitigate the volume declines affecting the broader repair and remodel industry.

總之，我們的團隊每天都致力於實現這一目標。我們在過去一年多來實施的營運改善幫助我們減輕了影響更廣泛的維修和改造行業的銷售下降。

I'm excited with the investments that we are making in automation that will drive future operational efficiencies and enable our long-term targets from both a growth and margin perspective. The long-term thesis in the housing market is still very strong and we'll be positioned nicely when it recovers.

我對我們在自動化領域的投資感到非常興奮，這將推動未來的營運效率，並從成長和利潤的角度實現我們的長期目標。房地產市場的長期前景仍然強勁，當市場復甦時，我們將處於有利地位。

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

我們的準備好的演講到此結束。我們將很樂意解答您目前提出的任何問題。

Ladies and gentlemen, at this time, we will begin the question-and-answer session. (Operator Instructions) Trevor Allinson, Wolfe Research.

女士們、先生們，現在我們開始問答環節。（操作員指示）Trevor Allinson，Wolfe Research。

Hey. Good morning. Thank you for taking my questions. First, just given the post from Trump last night calling for 25% tariffs on all imports from Mexico, can you guys quantify your supply chain exposure to Mexico? Appreciate you guys have a couple of facilities there.

嘿。早安.感謝您回答我的問題。首先，鑑於川普昨晚發表的帖子，要求對所有從墨西哥進口的產品徵收 25% 的關稅，你們能量化你們在墨西哥的供應鏈風險嗎？感謝你們在那裡提供一些設施。

Yeah, Trevor, I guess I'd start by just saying there's a lot of uncertainty regarding future policies on tariffs. And quite frankly, it could be a daily or weekly tweet that could change the tone on that.

是的，特雷弗，我想首先要說的是，未來的關稅政策存在著許多不確定性。坦白說，每天或每週的一條推文都可能改變這種基調。

Looking back, I guess I'd point to the focus previously on Chinese imports. Our sourcing team was able to significantly reduce our exposure for those purchases over the last five years. And the other potential import exposures, whether it's Mexico or Canada now that are recently noted, I just -- I would say that our teams have adapted to any kind of tariff or regulatory change that's come our way.

回顧過去，我想我會指出先前關注的重點是中國進口。在過去五年中，我們的採購團隊成功地大幅降低了這些採購的風險。至於其他潛在的進口風險，無論是最近提到的墨西哥還是加拿大，我想說的是，我們的團隊已經適應了任何可能的關稅或監管變化。

And our belief is that whatever the final policy is that's put in place, our teams will be able to make the adjustments necessary to be able to mitigate that. That could look like resourcing and shifting things to other markets. It could also lead to potential price impacts in the marketplace, those could be offset.

我們相信，無論最終實施的政策是什麼，我們的團隊都能夠做出必要的調整，以緩解這種影響。這可能看起來像是將資源轉移到其他市場。這也可能導致市場出現潛在的價格影響，但這些影響可以被抵銷。

Yeah, it makes a lot of sense. I appreciate there's still a lot of uncertainty about what actually ends up happening. Second question then, on the last call, you had indicated you announced a price increase in your dealer channel. It's typically the first channel to get pricing for you guys. In your prepared remarks today, you talked about reviewing your pricing monthly. Have you guys announced any incremental pricing in any other channels addition to the dealer channel? Thanks.

是的，這很有道理。我知道最終結果仍存在許多不確定性。那麼第二個問題是，在上次通話中，您表示您宣佈在經銷商通路上調價格。這通常是你們取得定價的第一個管道。在您今天的準備好的演講中，您談到了每月審查定價。除經銷商通路外，你們是否也宣布過其他通路的增量定價？謝謝。

Yeah, nothing additional at this point in time. You're right. We did announce last quarter an increase in the dealer channel. That went effective 10/1. So that's in place. As Paul mentioned, we evaluate all of our input costs on a monthly basis. And once those reach what we believe is an appropriate trigger point, we would start negotiations and actions in those channels. Keep in mind that it depends on the channel and the time frame as to when we had our last increase and when a future increase may be necessary.

是的，目前沒有額外的內容。你說得對。我們上個季度確實宣布了經銷商通路的成長。該規定於 10/1 生效。這就是它的意義。正如保羅所提到的，我們每個月都會評估所有的投入成本。一旦達到我們認為的適當的觸發點，我們就會透過這些管道開始談判和採取行動。請記住，這取決於管道和時間範圍，即我們上次加價的時間以及未來何時可能需要加價。

Appreciate all the color. Good luck moving forward.

欣賞所有的色彩。祝你未來好運。

Thanks, Trevor.

謝謝，特雷弗。

Garik Shmois, Loop Capital Markets.

Garik Shmois，Loop Capital Markets。

Hi. Thanks. First question is just on the sales outlook. It looks like you kept your view of low single-digit sales declines for the fiscal year. But if you're looking at your end market commentary, if I remember correctly, I think you did moderate some of your new construction observations. So just wondering kind of what the offset is in the maintained sales guidance into maybe stronger share gains or fully baked pricing actions. Just any additional color would be great.

你好。謝謝。第一個問題是關於銷售前景。看來您仍然認為本財年的銷售額將出現個位數的低幅下滑。但如果你正在看你的終端市場評論，如果我沒記錯的話，我認為你確實調整了一些新建築觀察。所以只是想知道在維持的銷售指導中，抵消因素是什麼，可能是更強勁的份額成長或全面的定價行動。只要添加任何顏色就很好了。

Sure. When you look at the second half versus the first half, we do expect better performance from a sales comp standpoint. Why would that be? You just hit one of the points. Pricing clearly in the channel would be a tailwind as we go into the second half.

當然。當你將下半年與上半年進行比較時，我們確實預期從銷售額的角度來看會有更好的表現。為什麼會這樣呢？你只要擊中其中一個點即可。當我們進入下半年時，明確的通路定價將會成為一大利好。

The other areas that I would look at is the stock kitchen and bath business. We had signaled last quarter some wins there that that will benefit our second half. We only got some partial benefit for that in the first half of the year. And then the other one I would point to is in our made-to-order business specifically, our home center business, we do have easier comps in the back half than we experienced in the first half. So that goes into our guidance outlook for the year.

我要關注的其他領域是庫存廚房和浴室業務。我們上個季度已經表示，一些勝利將有利於我們下半年的發展。我們上半年只獲得了部分效益。然後我想指出的另一個是我們的客製化業務，特別是我們的家居中心業務，我們下半年的業績確實比上半年更容易。這也符合我們對今年的指導展望。

Okay, that's helpful. And then I guess, tariffs aside, but I was wondering if you could speak to what you're seeing on the cost side for the second half of the year?

好的，這很有幫助。然後我想，除了關稅之外，我想知道您是否可以談談您對今年下半年成本的看法？

Yeah. We had mentioned last quarter that we were seeing some increases in particleboard. If that continues, Paul's planned remarks, he shared continued increases in labor and final mile delivery, specifically as a call out. So we continue to see input costs move in those particular areas. I think linerboard would be the other one I'd call out where we've seen some recent inflation.

是的。我們在上個季度提到，刨花板的銷售量有所成長。如果這種情況繼續下去，保羅在計劃中的演講中，分享了勞動力和最後一英里交付的持續增加，特別是作為呼籲。因此，我們繼續看到這些特定領域的投入成本變動。我認為，我要指出的另一個近期通膨現像也出現在紙板上。

Okay. Very good. Thanks for the help. I'll pass it out.

好的。非常好。謝謝你的幫忙。我會把它傳出去。

Okay. Thank you.

好的。謝謝。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊（Steven Ramsey），湯普森研究小組。

Hi. Good morning. I was looking at trailing 12-month sales in the last few quarters hovering in that $1.8 billion range in the midst of the market, as you said, incrementally weakening or staying weak despite rates. I'm curious if you kind of look at this zone of sales as a bottoming. Are you pontificating on any incremental risks or issues that could pressure it further aside from the macro? Or do you think it's pretty macro driven at this point?

你好。早安.我查看了過去幾個季度的 12 個月銷售額，發現市場中期銷售額徘徊在 18 億美元左右，正如您所說，儘管利率上升，但銷售額仍在逐步走弱或保持疲軟。我很好奇，您是否將這個銷售區域視為底部。除了宏觀因素之外，您是否還會對其他可能對其造成更大壓力的增量風險或問題發表看法？或者您認為目前它主要是由宏觀因素驅動的嗎？

I still think it's pretty macro driven. You had a lot baked into that remark. Could there be other things that perhaps could negatively impact even our outlook? Certainly, there are. We've gotten past the election. So for quite some time, there was a lot of uncertainty as it relates to that.

我仍然認為它是宏觀驅動的。你的這句話包含了很多內容。是否還有其他因素甚至可能對我們的前景產生負面影響？當然有。我們已經度過了選舉。因此在相當長的一段時間內，與此相關的問題存在著許多不確定性。

Now that we've gotten past that and now there's policy uncertainty. So what specifically do we expect to see with tariffs? We've already remarked a couple of times on that in this call. Immigration policies and what that means with respect to employment, especially our overall industry of building products and home building. So there are some variables out there that we're not exactly sure what the policy mandates will be and what those will do from an impact on consumers and consumer spending.

現在我們已經度過了這個階段，現在存在的是政策不確定性。那我們具體預期關稅會是什麼樣子的呢？我們在這次電話會議中已經多次提到這一點。移民政策及其對就業的影響，特別是對我們的整個建築產品和住宅建築行業的影響。因此存在一些變數，我們不確定政策授權是什麼，以及這些政策將對消費者和消費者支出產生什麼影響。

Okay. That's helpful. And then secondly, I was thinking about volume, sales down 4.5%. You've got some better pricing flowing through in the dealer channel. I'm curious a little bit on retail promotions in the quarter and expectations for the second half, all trying to get a directional sense of how you expect volumes to unfold in the second half.

好的。這很有幫助。其次，我考慮的是銷量，銷售額下降了 4.5%。您可以透過經銷商管道獲得更優惠的定價。我對本季的零售促銷活動以及下半年的預期有點好奇，試圖了解您預計下半年銷售將如何發展。

Yeah, the good news on the promos, we continue to see consistent activity and behavior with prior years. So we've not seen any substantial ramp-up in promotional activity nor a decline. It's been pretty consistent year over year. So don't expect any additional impacts there.

是的，促銷活動的好消息是，我們繼續看到與前幾年一致的活動和行為。因此，我們沒有看到促銷活動有任何實質的增加或下降。年復一年，情況一直相當穩定。因此，不要指望那裡會有任何額外的影響。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions) Adam Baumgarten, Zelman.

（操作員指令） Adam Baumgarten，Zelman。

Hey. Good morning, everyone. Just curious in the quarter sales down 4.5%. Maybe if you could break that out by the three main end channels that you guys serve?

嘿。大家早安。只是好奇本季銷售額下降了 4.5%。也許您可以按照您們服務的三個主要終端管道來區分這個問題？

Yeah, I don't have the breakout, Adam, for each of the channels. I'll just tell you, each of the channels were down in the period. The one thing that I did have a specific note on was new construction unit growth in the quarter, but price mix shifted just a slightly negative for the quarter.

是的，亞當，我沒有每個頻道的細分資訊。我只想告訴你，這段期間每個頻道都癱瘓了。我確實特別注意到的一件事是本季新建築單位的成長，但本季的價格組合僅發生了略微的負面變化。

So units are up in new construction, but price mix was down?

因此，新屋開建單位數增加了，但價格組合下降了？

Correct.

正確的。

Got it. Okay. And then just thinking about the maintained guidance, it implies kind of flattish trends in the back half of the year. I think, Scott, you mentioned some of the tailwinds. I guess does that outlook assume a continuation of the current trends you're seeing across end markets? Or are you assuming some kind of pickup outside of the easier comparisons?

知道了。好的。然後只要想想維持的指導，就代表今年下半年的趨勢將趨於平穩。史考特，我想你提到了一些順風。我猜這種前景是否假設您在終端市場看到的當前趨勢將持續下去？或者您是否假設在更簡單的比較之外還存在某種類型的回升？

Yeah, we're not assuming any kind of major macro improvement or any substantial change in rates that would lead to an increase in consumer demand. So kind of steady as it goes with this most recent quarter outlook as we think about the next two quarters.

是的，我們不假設任何重大的宏觀改善或利率的大幅變化會導致消費者需求增加。當我們考慮接下來的兩個季度時，最近一個季度的前景比較穩定。

Okay. Got it. Thanks a lot.

好的。知道了。多謝。

(Operator Instructions) Tim Wojs, Baird.

（操作員指示）蒂姆·沃斯（Tim Wojs），貝爾德（Baird）。

Hey, guys. Good morning. Maybe just kind of on that last question, Scott. I guess when you're thinking about low single digits down for the year, I guess there's a little bit of a range there. But would you expect the top line to kind of turn back positive, at least as you kind of get into the fourth quarter -- this fiscal year, just given the comps and kind of the implications in the guide?

嘿，大家好。早安.也許只是關於最後一個問題，斯科特。我想，當您考慮今年的低個位數下降時，我想那裡會有一點範圍。但是，您是否預計營收會轉正，至少在進入本財年第四季時，僅考慮到可比較數據和指南中的影響？

I think it's too early for me to declare that it will absolutely go positive. I think we modeled still down slightly in Q4. I think we need to get through some of these policy positions at the start of the calendar year and then see what the Fed actions are here in December and into January before we would get to a point of claiming that will go positive in that quarter. Certainly, as we think about '26, our view is in '26, should be a positive growth year for the business, fiscal year '26.

我認為現在宣布它絕對會取得積極成果還為時過早。我認為我們在第四季度的模型仍然略有下降。我認為，我們需要在年初確定一些政策立場，然後觀察聯準會 12 月和 1 月的行動，然後才能斷言該季度的經濟成長將呈現積極勢頭。當然，當我們思考 26 年時，我們的觀點是 26 年，即 26 財年，應該是業務積極成長的一年。

Okay. And is the kind of tweak lower on the EBITDA guide? I mean, is that just a little lower volume? Is it price cost of just what's the -- I guess, what are the drivers of kind of that modest reduction in the EBITDA kind of midpoint?

好的。這種調整是否會低於 EBITDA 指引？我的意思是，音量是不是稍微低了一點？是價格成本嗎？

Yeah, we wanted to tighten it up now that we're halfway through the year. We've got better line of sight as to where we see overall performance. To your point, specifically with some of the inflationary impacts, some of those picked up on us inside the last quarter and then the volume impacts overall. So as we model that out, we said, look, let's tighten this up. This is a better range as to being a $20 million spread versus half year open.

是的，今年已經過去一半了，我們想把力度加大一些。我們對整體表現有了更好的了解。正如您所說，具體到一些通膨影響，其中一些影響在上個季度就已經顯現，然後是總體數量影響。因此，當我們對此進行建模時，我們說，看，讓我們將其收緊。與半年開盤相比，這是一個更好的範圍，利差為 2,000 萬美元。

Okay. Good. And then any idea or any kind of guidance on free cash flow expectations, maybe relative to just EBITDA for the year?

好的。好的。那麼，對於自由現金流預期，您有什麼想法或指導嗎，可能僅與年度 EBITDA 有關？

Yeah. Tim, on the free cash flows relative to it, we'll be consistent with how we perform. We're still repurchasing. So we've got a lot of, I'll call it, excess cash that's out there. We will have constraints around our inventory, saw the pressures there along with the port strikes and the Chinese New Year, we wanted to make sure we had all the available goods that are out there. So if anything, we have just a little bit of pressure on our working capital related to inventory that's out there.

是的。提姆，就自由現金流而言，我們的表現將保持一致。我們仍在回購。所以我們有很多，我稱之為多餘的現金。我們的庫存將受到限制，考慮到港口罷工和農曆新年帶來的壓力，我們希望確保擁有所有可用的貨物。因此，如果有的話，我們的營運資金將面臨與現有庫存相關的一點壓力。

Okay. And then just the last one. Did you guys experience any kind of new constructs -- or hurricane impacts in the new construction business in the Southeast in the second quarter?

好的。接下來是最後一個。你們第二季度在東南部的新建築業務中是否經歷過任何類型的新建築或颶風的影響？

Yeah, we saw some impacts there. Certainly, there were some down days where we're able to actively get out to the job sites. We typically make those up with weekends and over time. I think the question maybe to explore is do we expect to see any benefit going forward for that.

是的，我們在那裡看到了一些影響。當然，有一些休息日，我們能夠積極地前往工作現場。我們一般會利用週末和加班時間來彌補這些。我認為可能需要探討的問題是，我們是否期望看到這樣做帶來的任何好處。

Specifically around new construction, no, just it's a timing issue. But when we think about our stock kitchen business, sometimes we'll see a little bit of benefit for that. The stores in which we had the largest impact with respect to the hurricanes, we work with our customers to make sure we've got the appropriate inventory levels there in case there is an increase in demand, but we don't expect anything material -- material impact our Q3.

具體到新建築方面，沒有，這只是一個時間問題。但當我們考慮我們的庫存廚房業務時，有時我們會看到其中的一些好處。在受颶風影響最大的商店，我們與客戶合作，確保在需求增加的情況下，我們擁有適當的庫存水平，但我們預計不會出現任何實質性的損失。 。

Okay. Sounds good. Thanks, guys, for your time.

好的。聽起來不錯。謝謝大家抽出時間。

Thanks, Tim.

謝謝，蒂姆。

And ladies and gentlemen, at this time and seeing no additional questions. I'd like to turn the floor back over to Mr. Joachimczyk for closing comments. Please go ahead, sir.

女士們、先生們，目前沒有其他問題。我想將發言權交還給約阿希姆奇克先生，請他發表最後評論。先生，請繼續。

Thank you again. This concludes our conference for today, and we thank you for your participation.

再次感謝您。今天的會議到此結束，感謝您的參與。

And ladies and gentlemen, with that, we'll be concluding today's conference call and presentation. We do thank you for joining. You may now disconnect your lines.

女士們、先生們，今天的電話會議和演示就到此結束。我們非常感謝您的加入。現在您可以斷開線路了。