Apogee Enterprises Inc (APOG) 2023 Q4 法說會逐字稿

Welcome to the Q4 2023 Apogee Enterprises, Inc. Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jeff Huebschen, Investor Relations. Please go ahead.

歡迎來到 Apogee Enterprises, Inc. 2023 年第四季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。我現在想把會議交給今天的演講者，投資者關係部的 Jeff Huebschen。請繼續。

Thank you, Michelle. Good morning, everyone, and welcome to Apogee Enterprises Fiscal 2023 Fourth Quarter Earnings Call. With me today are Ty Silberhorn, Apogee's Chief Executive Officer; and Mark Augdahl, Interim Chief Financial Officer. I'd like to remind everyone that there are slides to accompany today's remarks, and these are available in the Investor Relations section of Apogee's website.

謝謝你，米歇爾。大家早上好，歡迎來到 Apogee Enterprises 2023 財年第四季度財報電話會議。今天和我在一起的是 Apogee 的首席執行官 Ty Silberhorn；臨時首席財務官 Mark Augdahl。我想提醒大家，今天的發言附帶有幻燈片，這些可以在 Apogee 網站的投資者關係部分找到。

During this call, we will reference certain non-GAAP financial measures. Definitions of these measures and a reconciliation to the nearest GAAP measures are provided in the earnings release and slide deck that we issued this morning.

在此次電話會議中，我們將參考某些非 GAAP 財務指標。我們今天上午發布的收益發布和幻燈片中提供了這些措施的定義以及與最近的 GAAP 措施的對賬。

I'd also like to remind everyone that our call will contain forward-looking statements. These reflect management's expectations based on currently available information. Actual results may differ materially. More information about factors that could affect Apogee's business and financial results can be found in today's press release and in our SEC filings.

我還想提醒大家，我們的電話會議將包含前瞻性陳述。這些反映了管理層基於當前可用信息的預期。實際結果可能存在重大差異。有關可能影響 Apogee 的業務和財務業績的因素的更多信息，請參閱今天的新聞稿和我們向美國證券交易委員會提交的文件。

And with that, I'll turn the call over to you, Ty.

有了這個，我會把電話轉給你，Ty。

Thanks, Jeff. While the fourth quarter was a solid finish to a terrific year for Apogee. We continue to improve execution across the company, and we've built momentum executing our strategy, leading to a record full year revenue and earnings per share. I'd like to congratulate the entire Apogee team for these terrific results. This morning, I'll touch on the highlights from the quarter and the year, how our strategy is driving sustainable improvements in our business and our priorities as we continue to execute that strategy in fiscal '24. Then I'll turn it over to Mark for more details on the quarter and our outlook.

謝謝，傑夫。雖然第四季度為 Apogee 出色的一年畫上了圓滿的句號。我們繼續提高整個公司的執行力，我們已經建立了執行戰略的勢頭，從而實現了創紀錄的全年收入和每股收益。我要祝賀整個 Apogee 團隊取得這些了不起的成績。今天早上，我將介紹本季度和年度的亮點，我們的戰略如何推動我們業務的可持續發展，以及我們在 24 財年繼續執行該戰略時的優先事項。然後我會把它交給馬克，了解有關本季度和我們前景的更多細節。

Overall, results in our fourth quarter were largely as expected. We continue to have solid operational execution, effectively managing price and costs. As we expected, holiday shutdowns and normal seasonality impacted sales volume, especially in Framing Systems. Architectural Glass delivered another quarter of impressive progress, with operating margin exceeding 11%. Results were softer than expected in Architectural Services as we continue to work through the Sotawall integration and the improvement of that business. Finally, cash flow in the quarter was very strong, bringing full year cash from operations above last year's level. These strong fourth quarter results continued the positive trends established throughout fiscal '23. By executing our strategy, we have made sustainable improvements in our business. As a reminder, an overview of our strategy is shown on Page 4 of today's presentation. This year, we made great progress advancing each pillar of our strategy.

總體而言，我們第四季度的業績基本符合預期。我們繼續擁有可靠的運營執行力，有效地管理價格和成本。正如我們預期的那樣，假期停工和正常的季節性影響了銷量，尤其是 Framing Systems。建築玻璃在另一個季度取得了令人矚目的進展，營業利潤率超過 11%。隨著我們繼續通過 Sotawall 集成和該業務的改進，建築服務的結果比預期的要軟。最後，本季度的現金流非常強勁，使全年運營現金高於去年水平。這些強勁的第四季度業績延續了整個 23 財年確立的積極趨勢。通過執行我們的戰略，我們實現了業務的可持續改進。提醒一下，我們戰略的概述顯示在今天演示文稿的第 4 頁。今年，我們在推進戰略的每個支柱方面都取得了長足進步。

Some of the highlights are listed on Page 5. We advanced our Lean and continuous improvement initiatives, which had significant productivity gains, especially in Architectural Glass. We improved our overall approach to pricing, and we maintained a strong focus on cost management. Together, these allowed us to more than offset the continued impact of inflation. We work to increase our mix of differentiated products and services.

第 5 頁列出了一些亮點。我們推進了精益和持續改進計劃，這些計劃顯著提高了生產力，尤其是在建築玻璃方面。我們改進了整體定價方法，並始終高度關注成本管理。總之，這些使我們能夠抵消通貨膨脹的持續影響。我們致力於增加差異化產品和服務的組合。

In Architectural Glass, we continued to shift our selling strategies toward premium higher value-added products. In Framing Systems, we rationalized offerings moving away from lower-margin products. And in Large-Scale Optical, we continue to emphasize our highest-performing differentiated products. To support the second pillar of our strategy, active portfolio management, we've strengthened our M&A capabilities, improving our selection and execution processes for future acquisitions.

在建築玻璃方面，我們繼續將銷售策略轉向優質的高附加值產品。在 Framing Systems 中，我們對產品進行了合理化處理，不再使用低利潤產品。在 Large-Scale Optical，我們繼續強調我們性能最高的差異化產品。為了支持我們戰略的第二個支柱，即積極的投資組合管理，我們加強了併購能力，改進了未來收購的選擇和執行流程。

We also made significant progress with integrating Sotawall into Architectural Services. Finally, we improved our talent development programs, which is a key enabler for all 3 pillars of our strategy. This work was evident in our financial results for the year. Full year revenue grew 10% to a record $1.44 billion. Adjusted operating income increased more than 50% compared to last year, and adjusted earnings grew 60% to a record $3.98 per share.

我們在將 Sotawall 集成到建築服務方面也取得了重大進展。最後，我們改進了人才發展計劃，這是我們戰略所有三大支柱的關鍵推動因素。這項工作在我們當年的財務業績中顯而易見。全年收入增長 10%，達到創紀錄的 14.4 億美元。與去年相比，調整後的營業收入增長了 50% 以上，調整後的收益增長了 60%，達到創紀錄的每股 3.98 美元。

Full year results in Framing Systems and Architectural Glass were particularly impressive. At our Investor Day, we acknowledged that these 2 segments were underperforming their potential. Most of our focus, the past 6 quarters has been to better position Framing and Glass for long-term success.

框架系統和建築玻璃的全年業績尤其令人印象深刻。在我們的投資者日，我們承認這兩個部分的表現不佳。過去 6 個季度，我們的大部分重點是更好地定位 Framing 和 Glass，以取得長期成功。

Page 6 shows the margin progression for both segments. Framing margins improved by 530 basis points compared to last year and Glass improved by 600 basis points. Both segments are now performing within their targeted margin ranges, and we expect continued strong performance in fiscal '24 and beyond.

第 6 頁顯示了兩個細分市場的利潤增長情況。與去年相比，框架利潤率提高了 530 個基點，玻璃提高了 600 個基點。這兩個部門現在都在其目標利潤率範圍內表現，我們預計 24 財年及以後的表現將繼續強勁。

At our Investor Day in November of 2021, we also established 3-year financial targets for return on invested capital, operating margin and revenue growth. We are well on our way to reaching each of these objectives as reflected on Page 7. ROIC in fiscal '23 reached 13.8%, exceeding our goal of greater than 12%. In fact, all 4 segments were above 12% ROIC, a first for the company in many years. Operating margin improved to 8.7%, great progress toward our 10% plus target after just 1 year of our 3-year plan. And our revenue growth surpassed the growth rate in non-residential construction.

在 2021 年 11 月的投資者日，我們還制定了投資資本回報率、營業利潤率和收入增長的 3 年財務目標。正如第 7 頁所反映的那樣，我們正在順利實現這些目標中的每一個。23 財年的 ROIC 達到 13.8%，超過了我們超過 12% 的目標。事實上，所有 4 個部門的 ROIC 都超過 12%，這是該公司多年來的第一次。營業利潤率提高到 8.7%，在我們的 3 年計劃僅實施了 1 年之後，朝著我們 10% 以上的目標邁進了一大步。我們的收入增長超過了非住宅建築的增長率。

This was (inaudible) strong result as we moved away from some lower margin volume as part of fiscal '22 restructuring and new strategic direction we set for the company. As we move into fiscal 2024, our strategic framework remains well positioned to drive further progress toward our financial targets. We will do this even in a challenging market environment, while lower inflation will remain an issue for the foreseeable future. We expect continued tight labor markets. And higher interest rates, combined with overall economic uncertainty, will likely impact construction activity at some level.

這是（聽不清）強勁的結果，因為作為 22 財年重組和我們為公司設定的新戰略方向的一部分，我們放棄了一些較低的利潤率。隨著我們進入 2024 財年，我們的戰略框架仍然處於有利地位，可以推動進一步實現我們的財務目標。即使在充滿挑戰的市場環境中，我們也會這樣做，而在可預見的未來，較低的通脹仍將是一個問題。我們預計勞動力市場將繼續吃緊。更高的利率，加上整體經濟的不確定性，可能會在一定程度上影響建築活動。

However, through our team's efforts, we are transforming Apogee into a higher-performing, more resilient company, and I'm confident that we will drive further performance gains in the year ahead. Page 8 outlines our priorities for the new fiscal year, and let me go into more detail on 2 of these.

然而，通過我們團隊的努力，我們正在將 Apogee 轉變為一家績效更高、更具彈性的公司，我相信我們將在未來一年進一步推動業績增長。第 8 頁概述了我們新財政年度的優先事項，讓我更詳細地介紹其中的兩個。

Starting with the Apogee Management System or AMS, on Page 9. We first introduced AMS at our Investor Day. We view this as a multiyear effort to build an operating framework with supporting tools that define how we run our business. AMS is based on the principles of Lean and continuous improvement. These have been a part of Apogee's culture for several years, but the program needed to be reinvigorated. We started small, focusing heavily on just one part of our business, Architectural Glass. And we brought in key talent from other world-class manufacturing companies to support our efforts.

從第 9 頁的 Apogee 管理系統或 AMS 開始。我們在投資者日首次介紹了 AMS。我們將此視為一項多年努力，旨在構建一個運營框架，該框架具有定義我們如何運營業務的支持工具。 AMS 基於精益和持續改進的原則。多年來，這些一直是 Apogee 文化的一部分，但該計劃需要重新煥發活力。我們從小處著手，只專注於我們業務的一個部分，建築玻璃。我們從其他世界級製造公司引進了關鍵人才來支持我們的努力。

Our goal was to move quickly to generate near-term improvements to the bottom line. We experimented and learned making changes that delivered real results. From there, we began to broaden our approach deeper into the organization. In fiscal '24, we will continue to expand the scope of AMS. We will move beyond the initial deployment in Glass, going deeper into other parts of the company, and we will expand our toolkit beyond the foundation of Lean.

我們的目標是迅速採取行動，在短期內改善利潤。我們進行了試驗並學會了做出能夠產生實際結果的改變。從那裡開始，我們開始將我們的方法擴展到更深入的組織中。在 24 財年，我們將繼續擴大 AMS 的範圍。我們將超越最初在 Glass 中的部署，深入到公司的其他部分，並且我們將在精益基礎之外擴展我們的工具包。

We've challenged the organization to build pipeline offers of projects designed to drive continued productivity improvements. Through the deployment of AMS, we see the potential to drive meaningful productivity gains and continued margin improvement for the next several years. And this muscle will strengthen our ability to achieve synergies with future acquisitions, which is the next priority area I'd like to discuss outlined on Page 10.

我們向該組織提出挑戰，要求其構建旨在推動持續提高生產力的項目的管道報價。通過部署 AMS，我們看到了在未來幾年推動顯著提高生產力和持續提高利潤率的潛力。這種力量將加強我們與未來收購實現協同效應的能力，這是我想在第 10 頁概述的下一個優先領域。

We see M&A as an important part of our growth strategy going forward. To generate value from acquisitions, we needed to strengthen our foundation. We accomplished much of this work the past year and will continue to build our capabilities in fiscal '24. We've added key talent, defined a clear strategy and established a disciplined approach for screening and evaluating potential target companies. From this work, our team has developed a pipeline of opportunities and a plan for proactive engagement.

我們將併購視為我們未來增長戰略的重要組成部分。為了從收購中產生價值，我們需要鞏固我們的基礎。我們在過去一年完成了大部分工作，並將在 24 財年繼續增強我們的能力。我們增加了關鍵人才，制定了明確的戰略，並建立了嚴格的方法來篩选和評估潛在的目標公司。通過這項工作，我們的團隊開發了一系列機會和主動參與計劃。

Importantly, we have also developed a detailed approach to integration. In any deal, we will leverage Apogee's core capabilities to drive value from synergies. The chart on Page 10 outlines some characteristics we will look for in potential deals. We will seek acquisitions that support our strategy of becoming an economic leader. This means adding differentiated solutions that either strengthen our existing core business or help us expand into attractive adjacencies and further diversify our construction project mix.

重要的是，我們還開發了詳細的集成方法。在任何交易中，我們都將利用 Apogee 的核心能力從協同效應中推動價值。第 10 頁的圖表概述了我們將在潛在交易中尋找的一些特徵。我們將尋求支持我們成為經濟領導者的戰略的收購。這意味著添加差異化的解決方案，以加強我們現有的核心業務，或幫助我們擴展到有吸引力的鄰近地區，並進一步使我們的建築項目組合多樣化。

We will also apply a rigorous financial lens to potential deals to ensure acquisitions are accretive to our long-term financial performance. As we focus on our priorities for the new year, I'm confident we will advance our strategy and move closer to achieving our 10% margin goal while sustaining our ROIC and growth objectives. We are proud of the progress we made over the past year. But we know our work is not done. Our entire team is aligned to become the economic leader in our target markets and drive continued performance gains. With that, let me turn the call over to Mark for more details on the quarter and our guidance.

我們還將對潛在交易採用嚴格的財務視角，以確保收購能夠增加我們的長期財務業績。當我們專注於新一年的優先事項時，我相信我們將推進我們的戰略，並在維持我們的 ROIC 和增長目標的同時更接近實現我們 10% 的利潤率目標。我們為過去一年取得的進步感到自豪。但我們知道我們的工作還沒有完成。我們的整個團隊都致力於成為我們目標市場的經濟領導者，並推動持續的業績增長。有了這個，讓我把電話轉給馬克，了解有關本季度和我們指導的更多細節。

Thanks, Ty, and good morning, everyone. We closed out our fiscal year with a solid fourth quarter, continuing the positive momentum we've built throughout the year. Let me provide more details, starting with the consolidated results found on Page 11. As Ty mentioned, the quarter played out largely as we expected. We had solid execution across most of the business, while pricing remains strong, allowing us to more than offset inflation.

謝謝，泰，大家早上好。我們以穩健的第四季度結束了我們的財政年度，延續了我們全年建立的積極勢頭。讓我提供更多詳細信息，從第 11 頁上的綜合結果開始。正如 Ty 所提到的，本季度的表現基本符合我們的預期。我們在大部分業務中都有穩健的執行力，同時定價仍然強勁，這使我們能夠抵消通貨膨脹。

Seasonality and our extended holidays (inaudible) negatively impacted volume and revenue. Total revenue grew 5% to $344 million in the quarter. Like the past few quarters, growth was primarily driven by inflation-related pricing in Framing Systems. The Glass segment also had double-digit growth, primarily from pricing and improved product mix. This was partially offset by lower revenue in Architectural Services.

季節性和我們延長的假期（聽不清）對銷量和收入產生了負面影響。本季度總收入增長 5% 至 3.44 億美元。與過去幾個季度一樣，增長主要是由 Framing Systems 中與通貨膨脹相關的定價推動的。玻璃部門也有兩位數的增長，主要來自定價和改進的產品組合。這部分被建築服務收入的減少所抵消。

Adjusted operating income and margins decreased compared to the prior year. This was primarily driven by lower margins in the Architectural Services segment, along with higher corporate expense from increased insurance and compensation costs. These were nearly offset by strong margin performance in Framing Systems and Glass. Interest expense remained a headwind, up $1.2 million compared to last year's fourth quarter. This was primarily driven by higher interest rates.

與上一年相比，調整後的營業收入和利潤率有所下降。這主要是由於建築服務部門的利潤率較低，以及保險和賠償成本增加導致的公司費用增加。這些幾乎被 Framing Systems 和 Glass 的強勁利潤率表現所抵消。利息支出仍然是不利因素，與去年第四季度相比增加了 120 萬美元。這主要是由更高的利率推動的。

The tax rate in the quarter was lower than our statutory rate, primarily due to tax benefits related to the worthless stock deduction we took earlier in the year. We excluded this $1.1 million tax benefit from our adjusted earnings. Our diluted share count was 22.3 million, down 8% from last year due to our share repurchases earlier in the year. At the bottom line, adjusted earnings were $0.86 per share, down slightly from $0.91 in last year's fourth quarter.

本季度的稅率低於我們的法定稅率，這主要是由於與我們在今年早些時候進行的無價值股票扣除相關的稅收優惠。我們從調整後的收益中排除了這 110 萬美元的稅收優惠。由於我們在今年早些時候回購了股票，我們的攤薄後股票數量為 2230 萬股，比去年下降 8%。最後，調整後每股收益為 0.86 美元，略低於去年第四季度的 0.91 美元。

Our full year results are shown on Page 12. As Ty mentioned, we achieved record full year revenue and earnings per share. While growth was driven by Framing Systems, all 4 segments increased their revenue for the year. I'd also like to note that Large-Scale Optical achieved another year of record sales. Full year adjusted operating income increased by 52% and margins improved by 240 basis points, driven by strong gains in both Framing Systems and Glass. We are particularly happy with our improved return on invested capital. This was up 570 basis points to 13.8% and above our 12% target.

我們的全年業績顯示在第 12 頁。正如 Ty 提到的，我們實現了創紀錄的全年收入和每股收益。雖然增長是由 Framing Systems 推動的，但所有 4 個部門今年的收入都有所增加。我還想指出，Large-Scale Optical 又創下了一年的銷售記錄。受 Framing Systems 和 Glass 強勁增長的推動，全年調整後的營業收入增長了 52%，利潤率提高了 240 個基點。我們對投資資本回報率的提高感到特別高興。這上升了 570 個基點，達到 13.8%，高於我們 12% 的目標。

Let's move to segment results on Slide 13, starting with Framing Systems. Framing had another solid quarter. Revenue grew 13%, primarily driven by pricing actions taken to offset inflation, along with a more favorable sales mix. Operating income increased to $15.6 million, and margins improved to 10.5%, up 370 basis points compared to last year.

讓我們轉到幻燈片 13 上的細分結果，從框架系統開始。框架有另一個穩定的季度。收入增長 13%，主要受為抵消通貨膨脹而採取的定價措施以及更有利的銷售組合所推動。營業收入增至 1560 萬美元，利潤率增至 10.5%，與去年相比增長 370 個基點。

Turning now to Architectural Services. Revenue was down 14%, reflecting lower volume due to timing of projects in our backlog. Operating margin decreased to 3.7%. This was primarily driven by lower profitability on legacy Sotawall projects. We have made great progress to integrate Sotawall into our Services segment. We've retired the Sotawall brand and the entire segment now operates under the Harmon brand and business model.

現在轉向建築服務。收入下降了 14%，反映出由於我們積壓項目的時間安排導致銷量下降。營業利潤率下降至 3.7%。這主要是由於遺留 Sotawall 項目的盈利能力較低所致。我們在將 Sotawall 整合到我們的服務部門方面取得了很大進展。我們已經淘汰了 Sotawall 品牌，整個部門現在都在 Harmon 品牌和商業模式下運營。

We are no longer pursuing the type of work that Sotawall competed for in the past. And going forward, we see significant opportunity to improve overall profitability in the Services segment. Looking at orders and backlog. Services finished the year with $727 million in backlog, which was down slightly compared to the third quarter, but well above last year's level, reflecting solid order intake during the year and positioning us well for fiscal 2024.

我們不再追求 Sotawall 過去競爭的那種工作。展望未來，我們看到了提高服務部門整體盈利能力的重大機會。查看訂單和積壓。服務業今年年底的積壓訂單為 7.27 億美元，與第三季度相比略有下降，但遠高於去年的水平，這反映出這一年的訂單量穩健，並為我們在 2024 財年做好了準備。

In Architectural Glass, the team continued to make terrific progress. Revenue grew 12% to $81 million. This was driven by improved pricing and mix and reflects our continuing strategic shift towards more premium products. Operating margin continued to trend higher, reaching 11.7%. Adjusted operating margins in Glass have now improved sequentially for 6 consecutive quarters.

在建築玻璃方面，該團隊繼續取得了驚人的進步。收入增長 12% 至 8100 萬美元。這是由改進的定價和組合推動的，反映了我們向更優質產品的持續戰略轉變。營業利潤率繼續走高，達到 11.7%。 Glass 的調整後營業利潤率現已連續 6 個季度環比提高。

Finally, Large-Scale Optical continued to deliver steady performance. Revenue grew 3%, primarily due to improved pricing, and operating income was down slightly due to increased operating costs.

最後，Large-Scale Optical 繼續提供穩定的表現。收入增長 3%，主要是由於定價的改善，而營業收入則因營業成本增加而略有下降。

Let's turn to the cash flow and the balance sheet found on Page 14. We had another very strong quarter with $52 million of cash flow from operations. This pushed full year cash from operations to $103 million, which was slightly above last year's level. We were especially happy with cash flow performance given the significant use of cash in the first quarter due to increased working capital related to inflation.

讓我們來看看第 14 頁的現金流和資產負債表。我們有另一個非常強勁的季度，運營現金流為 5200 萬美元。這將全年運營現金推高至 1.03 億美元，略高於去年的水平。由於與通貨膨脹相關的營運資金增加，第一季度大量使用現金，我們對現金流量表現特別滿意。

We ramped up capital spending in the fourth quarter, bringing full year CapEx to $45 million. This included investments to expand capacity in our higher-margin businesses, enhance productivity through automation and deploy improved systems to better support our business. Other than CapEx, our primary use of cash in the quarter was used for debt reduction. We paid down $34 million of debt in the quarter. This puts our net leverage below 1x adjusted EBITDA.

我們在第四季度增加了資本支出，使全年資本支出達到 4500 萬美元。這包括投資擴大我們利潤率較高的業務的產能，通過自動化提高生產力，以及部署改進的系統以更好地支持我們的業務。除資本支出外，我們本季度現金的主要用途是減少債務。我們在本季度償還了 3400 萬美元的債務。這使我們的淨槓桿率低於調整後 EBITDA 的 1 倍。

In addition to CapEx and debt reduction, we also continued to return cash to shareholders. During the quarter, we increased our dividend by 9% for the full year and returned $94 million to shareholders through share buybacks and dividends. We want to reiterate our commitment to a balanced capital deployment strategy shown on Page 15. We plan to continue to invest to support our strategy.

除了資本支出和債務削減，我們還繼續向股東返還現金。本季度，我們將全年股息提高了 9%，並通過股票回購和股息向股東返還了 9400 萬美元。我們要重申我們對第 15 頁所示的平衡資本部署戰略的承諾。我們計劃繼續投資以支持我們的戰略。

In fiscal '24, we expect capital spending of $50 million to $60 million in addition to evaluating potential acquisitions. We will also continue to return cash to shareholders while maintaining a strong balance sheet. This balanced approach to capital deployment is supported by our continued strong cash flow from operations. Let me (technical difficulty) by discussing our outlook, which is found on Page 16.

在 24 財年，除了評估潛在收購外，我們預計資本支出將達到 5000 萬至 6000 萬美元。我們還將繼續向股東返還現金，同時保持穩健的資產負債表。這種平衡的資本部署方法得到了我們持續強勁的運營現金流的支持。讓我（技術困難）討論我們的前景，見第 16 頁。

We expect full year earnings per share in the range of $3.90 to $4.25. I would like to point out that fiscal '24 will be a 53-week year, meaning we will have an extra week of operations in the fourth quarter. For the full year, the extra week will add approximately 2% of revenue, which will flow through the income statement accordingly. Including the extra week of operations, we expect full year revenue to be flat to slightly declining. This is primarily due to lower volume in Architectural Services due to timing of product flow and as we ramp up some legacy Sotawall projects.

我們預計全年每股收益在 3.90 美元至 4.25 美元之間。我想指出，'24 財年將是 53 週的一年，這意味著我們將在第四季度多運營一周。對於全年，多出的一周將增加約 2% 的收入，相應地計入損益表。包括額外的一周運營，我們預計全年收入將持平或略有下降。這主要是由於產品流的時間安排導致建築服務的數量減少以及我們增加了一些遺留的 Sotawall 項目。

Also, based on the latest market forecasts, we are being cautious about potential slowdown in nonresidential construction in the second half of our fiscal year. This could impact volumes, especially in our short cycle Framing business. Even with flat to declining revenue, we expect continued margin improvements. This will be primarily driven by further productivity gains as we deploy AMS across the broader spectrum of the company.

此外，根據最新的市場預測，我們對本財年下半年非住宅建築的潛在放緩持謹慎態度。這可能會影響銷量，尤其是在我們的短週期框架業務中。即使收入持平或下降，我們預計利潤率將持續改善。隨著我們在公司的更廣泛範圍內部署 AMS，這將主要受到生產力進一步提高的推動。

I'd also like to remind everyone that in the first half of fiscal '23, Framing Systems had a $5 million benefit due to the volatility of aluminum costs and the timing of inventory flows. This benefit will not repeat in fiscal '24 and will be a year-over-year headwind for Framing Systems, especially in the first quarter.

我還想提醒大家，在 23 財年上半年，由於鋁成本的波動和庫存流動的時間安排，Framing Systems 獲得了 500 萬美元的收益。這種好處不會在 24 財年重複出現，並且將成為 Framing Systems 的同比逆風，尤其是在第一季度。

We expect interest expense to continue at a run rate similar to the past 2 quarters, driven by higher rates, and we expect to return to our long-term average rate of tax rate of approximately 24.5%. With that, I'll turn it back over to Ty for some concluding remarks.

在較高利率的推動下，我們預計利息支出將繼續保持與過去兩個季度相似的運行率，並且我們預計將恢復到大約 24.5% 的長期平均稅率。有了這個，我會把它轉回給 Ty 做一些總結性的評論。

Thanks, Mark. Before I wrap up, I'd like to extend my gratitude to Mark for all of his outstanding work over the past few quarters as our interim CFO. As you may have seen, we recently named a new Chief Financial Officer, Matt Osberg, who will join the company later this month. Mark will support Matt during this transition and will continue to provide valuable leadership to our finance organization and to the Architectural Glass segment. Our executive team is grateful for your leadership Mark.

謝謝，馬克。在我結束之前，我想感謝馬克在過去幾個季度作為我們的臨時首席財務官所做的所有出色工作。您可能已經看到，我們最近任命了一位新的首席財務官 Matt Osberg，他將於本月晚些時候加入公司。馬克將在此過渡期間支持馬特，並將繼續為我們的財務組織和建築玻璃部門提供寶貴的領導。我們的執行團隊感謝您的領導馬克。

As we wrap our fiscal '23, I want to also recognize our broader teams. I'm exceptionally proud of them and everything we've accomplished together this fiscal year. They are responsible for transforming Apogee into a higher performing, more resilient company. We've improved our operational execution, made significant productivity gains, built a more competitive cost structure, and we've established a stronger [position] to drive long-term profitable growth.

在我們結束 23 財年之際，我還想表彰我們更廣泛的團隊。我為他們以及我們在本財年共同完成的一切感到無比自豪。他們負責將 Apogee 轉變為一家績效更高、更具彈性的公司。我們改進了運營執行，顯著提高了生產力，建立了更具競爭力的成本結構，並且我們已經建立了更強大的[地位]來推動長期盈利增長。

We have significant momentum toward achieving our financial targets, and we delivered record revenue and earnings per share. Looking ahead to fiscal '24, we expect to drive continued progress by executing our strategy, positioning the company to create peak value for all of our stakeholders for many years to come. With that, we are ready to take your questions.

我們在實現財務目標方面勢頭強勁，我們實現了創紀錄的收入和每股收益。展望 24 財年，我們希望通過執行我們的戰略來推動持續進步，使公司定位為在未來許多年為我們所有利益相關者創造峰值價值。這樣，我們就可以回答您的問題了。

(Operator Instructions) The first question comes from Chris Moore with CJS Securities.

（操作員說明）第一個問題來自 CJS 證券公司的 Chris Moore。

Maybe just start with the '24 guide. So revenue flat to slightly down. Do you expect volume growth in any of the segments?

也許只是從 '24 指南開始。因此收入持平至略有下降。您預計任何細分市場的銷量都會增長嗎？

Well, as you know, we don't give specific guidance to segments. I think as we looked at this -- and we have commented on this earlier, we did expect and it's playing out that way that Services would have a revenue and volume decline. And that's being driven by the fact that they're now executing jobs that were won in calendar 2020 and calendar '21, which was the trough, if you will, from the last downturn.

好吧，如您所知，我們不會對細分市場提供具體指導。我認為，當我們審視這一點時——我們早些時候對此發表了評論，我們確實預計到服務收入和銷量都會下降。這是因為他們現在正在執行在 2020 年和 21 年日曆中贏得的工作，如果你願意的話，這是上次經濟低迷以來的低谷。

So that's really our -- the big driver when we look at from a volume and revenue perspective of the declines. As we look at the other segments, we've got short-cycle business in Framing that it's hard to predict right now. But as we look at the others, we look to flattish to growth.

因此，當我們從數量和收入下降的角度來看時，這真的是我們的主要推動力。當我們查看其他部分時，我們在 Framing 中有短週期業務，現在很難預測。但是當我們看其他人時，我們希望增長持平。

Yes. I was going to just maybe comment essentially the volume reduction at Harmon -- or, excuse me, at our Services segment will be really offset primarily with pricing and mix opportunities within Glass and the Framing Systems. It's pretty much flattish volume is what we're expecting in the other segments.

是的。我可能只是想基本上評論 Harmon 的銷量減少——或者，對不起，我們的服務部門將主要被 Glass 和 Framing Systems 的定價和混合機會所抵消。這是我們在其他細分市場中所期望的相當平坦的數量。

Got it. It's very helpful. And the EPS side, that range, $3.90 to $4.25, is that a function of revenue? Or is there -- are there other things necessary to get to that high end?

知道了。這非常有幫助。 EPS 方面，這個範圍，3.90 美元到 4.25 美元，是收入的函數嗎？或者是否有 - 是否有其他必要的東西來達到那個高端？

Well, I think as we look at that, one, continued favorable pricing environment. That's one thing that would help ensure that we could get to that higher end. And that's especially important for Framing, which was a big driver from our profit improvement in fiscal '23. We do expect to continue with strong progress and productivity through our AMS deployment. And that not only helps us manage any headwinds that might come up, that also could help push us to that higher end.

好吧，我認為當我們看到這一點時，一個持續有利的定價環境。這是有助於確保我們能夠達到更高目標的一件事。這對 Framing 來說尤其重要，它是我們 23 財年利潤改善的重要推動力。我們確實希望通過我們的 AMS 部署繼續取得強勁的進步和生產力。這不僅有助於我們應對可能出現的任何逆風，還有助於將我們推向更高的目標。

And then we are expecting a continued favorable mix shift, primarily in Glass. So Glass has been really focused on driving this shift to higher value-added product offerings, the premium side of the market, if you will.

然後我們期待持續有利的混合轉變，主要是在玻璃領域。因此，Glass 一直專注於推動向更高附加值產品的轉變，如果你願意的話，也就是市場的高端。

So even unit volumes out the door are flattish, we do expect a higher per square foot selling price on those products, and that will help us not only from a revenue perspective but that will help drive profitability and get us into the higher end of that range as well.

因此，即使出貨量持平，我們確實預計這些產品的每平方英尺售價會更高，這不僅從收入的角度對我們有幫助，而且有助於提高盈利能力並讓我們進入更高的市場範圍也是如此。

And then maybe just one other comment. Obviously, we'll need the market to kind of continue to bounce along at its current levels. If market deteriorates faster than what we expect, obviously, we would be drifting towards the lower end, but market conditions are at least at the current levels.

然後可能只有另一條評論。顯然，我們需要市場在目前的水平上繼續反彈。如果市場惡化速度快於我們的預期，顯然，我們將向低端漂移，但市場狀況至少處於當前水平。

Got it. Maybe just one more for me. So aluminum is down significantly since April '22. Can you just walk through the pricing mechanisms and how that impacts '24 versus '23?

知道了。也許對我來說只有一個。因此，鋁自 22 年 4 月以來大幅下跌。您能否介紹一下定價機制以及它如何影響 24 年和 23 年？

Well, I think, as you know, I mean, a lot of our industry is driven by raw material pricing, right? And that's some of the challenges that we've had if you go back 1.5 years ago, and we've improved that pricing model significantly. The industry, as a whole, generally adjust prices in response to those changes in the input costs. And that's what we have seen in fiscal '23, not only were we making changes, but we believe most major competitors have raised prices.

好吧，我想，正如你所知，我的意思是，我們的很多行業都是由原材料定價驅動的，對嗎？如果你回到 1.5 年前，這就是我們遇到的一些挑戰，我們已經顯著改進了定價模型。整個行業通常會根據投入成本的變化調整價格。這就是我們在 23 財年所看到的，不僅我們在做出改變，而且我們相信大多數主要競爭對手都提高了價格。

As market conditions change, we'll have to adjust our pricing as appropriate. But ultimately, that pricing power and winning work comes down to the value that we're providing. That shift to premium that we're doing in Glass, the selling of higher value-added products and delivering on our service promise, we believe helps give us some strength in our pricing power in the market in fiscal '24 and going forward.

隨著市場條件的變化，我們將不得不適當調整我們的定價。但最終，定價權和獲獎作品歸結為我們提供的價值。我們在 Glass 中所做的向高端產品的轉變，銷售高附加值產品並兌現我們的服務承諾，我們相信這有助於我們在 24 財年及未來的市場定價能力中獲得一些優勢。

The next question comes from Eric Stine with Craig-Hallum.

下一個問題來自 Eric Stine 和 Craig-Hallum。

So can we just go back to Services a little bit? I know that Ty, you talked about that this is not necessarily unexpected in terms of thinking about fiscal '24 being down modestly, but you've also got higher backlog. Now I know that you've added Sotawall backlog to that. So just kind of curious how to square those two things? Is it something where you're seeing the added backlog, it's stretched out a little further in terms of time? Or is the year-over-year increase, a lot of that is Sotawall?

那麼我們可以稍微回到服務嗎？我知道 Ty，你說過，考慮到 24 財年的適度下降，這並不一定是出乎意料的，但你也有更多的積壓。現在我知道您已經向其中添加了 Sotawall 積壓工作。所以只是有點好奇如何將這兩個東西平方？您是否看到了增加的積壓，在時間方面延長了一點？或者是同比增長，其中很多是 Sotawall？

Yes. I think there's a couple of things. So one, that larger backlog is spread out over time. So I think if you read into that, we look at fiscal '24, we expect revenues to be down. There's a lot of work to still do in fiscal '25, but the strength of that total backlog points to some positives as we move forward on that. As we wind down some of the Sotawall projects, we're in a transition mode with Sotawall now adopting the Harmon business model. That changes the types of projects that they go after and the model that they use in executing against those projects.

是的。我認為有幾件事。因此，第一，更大的積壓會隨著時間的推移而分散。所以我認為，如果你讀到這一點，我們看看 24 財年，我們預計收入會下降。在 25 財年還有很多工作要做，但隨著我們向前推進，總積壓量的強度表明了一些積極因素。當我們結束一些 Sotawall 項目時，我們正處於過渡模式，Sotawall 現在採用 Harmon 商業模式。這改變了他們追求的項目類型以及他們在執行這些項目時使用的模型。

So there's some transition period that's happening here in fiscal '24 and as we go into fiscal '25. We do expect even with that revenue decline that we will see a margin improvement, not only in margin percentage for Services, but likely right now see a path for them to -- even in the lower revenue and because of that margin improvement sees a possibility that they can actually improve on profit dollars for the year as well.

因此，在 24 財年和我們進入 25 財年時，這裡發生了一些過渡期。我們確實預計，即使收入下降，我們也會看到利潤率有所提高，不僅是服務的利潤率百分比，而且現在很可能會看到他們的道路——即使收入較低，而且由於利潤率提高，我們看到了一種可能性他們實際上也可以提高當年的利潤。

Got it. That's helpful color. And then maybe just going back on the pricing side, I mean, I don't want to put words in your mouth at all. But I mean it does sound like you have some confidence in the ability to hold price even if you need to, I guess, in lock step with the industry or normal practices, even if you have to readjust depending on input costs. So I just curious if you would agree with my statement or I guess, or not, given your move to higher value add?

知道了。這是有用的顏色。然後也許只是回到定價方面，我的意思是，我根本不想在你嘴裡說話。但我的意思是，聽起來你確實對保持價格的能力有一些信心，即使你需要，我猜，與行業或正常做法保持同步，即使你必鬚根據投入成本進行重新調整。所以我很好奇你是否同意我的說法，或者我猜，考慮到你轉向更高的附加值，你是否同意？

Yes. Well, maybe there's an agreement in there, and maybe I'll just reword it and play it back to you a little bit, Eric. As we look at the market right now, until there is a significant decline in market, we think from an overall market perspective, pricing probably remains relatively stable. Our shift to premium will help us maintain that pricing level. And I think most importantly, we have a different cost structure than we had previously, and we have really strengthened that muscle in our AMS platform, the Apogee Management System.

是的。好吧，也許裡面有一個協議，也許我會改寫它並稍微回放給你，埃里克。我們現在看市場，在市場出現大幅下滑之前，我們認為從整體市場的角度來看，定價可能會保持相對穩定。我們轉向溢價將幫助我們維持這一定價水平。我認為最重要的是，我們的成本結構與以前不同，而且我們確實加強了 AMS 平台 Apogee 管理系統的力量。

So even as we see potential pricing pressure, we've got confidence, one, from the premium offerings that we're trying to stay focused on as we move forward now, and then our ability to drive productivity -- continued productivity in our operations that, that helps to offset that to some degree, even if there is some downward price pressure.

因此，即使我們看到潛在的定價壓力，我們也有信心，一個，來自我們現在努力保持專注的優質產品，然後是我們提高生產力的能力——我們運營中持續的生產力這有助於在某種程度上抵消這一影響，即使存在價格下行壓力。

Okay. Got it. And then maybe last one for me, just on the M&A pipeline. Clearly, that's been a focus of yours to be ready in that, that's an important part of your growth. I mean maybe just talk about what the pipeline looks like, if things have advanced in that pipeline and just maybe the outlook?

好的。知道了。然後對我來說也許是最後一個，就在併購管道上。顯然，這一直是你準備好的重點，這是你成長的重要部分。我的意思是，也許只是談論管道的樣子，如果管道中的事情有所進展，也許只是前景？

Yes. We have really been focused on building our capabilities. So we brought some experienced talent into the organization to help us with that process. We have built our integration playbook. We talked about going forward that we would not operate acquisitions -- manage acquisitions the way we did in the past with kind of this holding company model, but would look to integrate substantial portions of those businesses and drive cost synergies as a meaningful way to deliver the return and the value derived from that acquisition.

是的。我們一直專注於培養我們的能力。因此，我們將一些經驗豐富的人才帶入組織，以幫助我們完成該過程。我們已經構建了我們的集成劇本。我們談到未來我們不會進行收購——以我們過去使用這種控股公司模式的方式管理收購，而是希望整合這些業務的大部分並推動成本協同效應，作為一種有意義的交付方式從該收購中獲得的回報和價值。

So we have done that work. We have built what I believe is a very robust pipeline. And we have been in process and we'll continue to be in process of evaluating targets in that pipeline. And we expect to be proactive, meaning identifying businesses that we think would be great strategic fit so that we could add value to and reactive that sometimes things will come to market, and we certainly will take a look at things that come to market and are part of a formal process.

所以我們已經完成了這項工作。我們已經建立了我認為非常強大的管道。我們一直在進行，並將繼續評估該管道中的目標。我們希望積極主動，這意味著確定我們認為非常適合戰略的業務，以便我們可以增加價值和反應有時會進入市場的東西，我們當然會看看進入市場的東西並且是正式過程的一部分。

Next question comes from Brent Thielman with D.A. Davidson.

下一個問題來自 Brent Thielman 和 D.A.戴維森。

Ty, it sounds like the outlook embeds some caution just given the macro environment, maybe some forecast out there that we often kind of see today. I guess I'd be curious, just given this tightening credit environment, maybe some increasing concerns about commercial construction. What are you seeing in bid quote activities right now? Maybe what are the trends in your shorter lead-time businesses tell you about the market today? Any feedback you're sort of seeing -- hearing from customers or for owners that sort of sales around that more conservative view in the second half?

Ty，聽起來前景似乎只是考慮到宏觀環境而有些謹慎，也許是我們今天經常看到的一些預測。我想我很好奇，鑑於這種緊縮的信貸環境，也許對商業建築的擔憂有所增加。您現在在報價活動中看到了什麼？也許您的較短交貨期業務的趨勢告訴您當今市場的哪些情況？您看到的任何反饋——從客戶或業主那裡聽到的關於下半年更保守觀點的銷售情況？

Yes. I'm going to sound a bit like a broken record, Brent, but it's continued choppiness. So when we look across our businesses, we continue to see strong bid activity, but we kind of see this 1 month of really strong activity kind of a slowdown month followed by what we would typically regard as a normal month of bid activity. So that just for us indicates that there's still some uncertainty in the market.

是的。布倫特，我聽起來有點像一張破唱片，但它一直在斷斷續續。因此，當我們審視我們的業務時，我們繼續看到強勁的投標活動，但我們有點看到這 1 個月的真正強勁的活動有點放緩月份，然後是我們通常認為的正常月份的投標活動。所以這對我們來說表明市場仍然存在一些不確定性。

Obviously, the leading indicators like ABI point to some softness coming at some point, whether it's towards the end of calendar '23 or as we get into calendar '24, that's what those leading indicators are pointing towards right now. So when we put our guidance together, if you think about the low end of our guidance, that's really driven. You're correct in saying it's cautionary on our part. Just looking at, especially our short-cycle business, which most of that sits in Framing and then a little bit of the consumer spend in LSO that, that could soften in the second half of our fiscal year, which carries into calendar '24.

顯然，像 ABI 這樣的領先指標表明在某個時候會出現一些疲軟，無論是在 23 年日曆結束時還是進入 24 年日曆時，這就是這些領先指標目前所指向的。因此，當我們將我們的指導放在一起時，如果你考慮我們指導的低端，那真的是有動力的。你說這是對我們的警告是正確的。看看，尤其是我們的短週期業務，其中大部分位於 Framing 中，然後是 LSO 中的一點點消費者支出，這可能會在我們財政年度的下半年減弱，這將進入日曆 '24。

And so that was our thought process when we put the low end of that guidance range together that we're just trying to be cautious and thoughtful that, that is a possibility, and we just want to make sure that we're focused in preparing for that, should it occur.

因此，當我們將指導範圍的低端放在一起時，這就是我們的思考過程，我們只是想保持謹慎和深思熟慮，這是一種可能性，我們只是想確保我們專注於準備為此，如果它發生。

Yes. And Ty, the Services business has always been one that you get a little more extended visibility out of your booking things a little further out. It does sound like that continues to happen. I mean backlog is holding up reasonably well there relative to the prior year. Is that a fair statement as you look out into fiscal '25?

是的。 Ty，服務業務一直是您從更遠的預訂事物中獲得更多可見性的業務。聽起來確實會繼續發生。我的意思是，與前一年相比，積壓情況相當不錯。當你展望 25 財年時，這是一個公平的陳述嗎？

Yes. That's a fair statement. That's -- and a reminder, I think we're conservative versus a lot of other companies in terms of how we -- what we share in that backlog. So that backlog has a high confidence level. It's things that have been formally awarded or we've got orders on already that we're counting in that. So that also gives us confidence in that -- the strength of that backlog overall.

是的。這是一個公平的說法。這就是 - 提醒一下，我認為我們在我們如何 - 我們在積壓中分享的內容方面與許多其他公司相比是保守的。因此，積壓工作具有很高的置信度。這是已經正式授予的東西，或者我們已經收到了我們正在計算的訂單。因此，這也讓我們對此充滿信心 - 整體積壓的實力。

Okay. I appreciate that. And then, I mean, look, really solid margin in Glass. I mean the initiatives you all put in place seem to be very effective here. I guess your views on sustaining these kind of lower double-digit levels in fiscal 2024 for that operating segment. Any anomalies in this particular quarter, this is just what you've set out to do?

好的。我很感激。然後，我的意思是，看，Glass 的利潤率非常可觀。我的意思是你們所採取的舉措在這裡似乎非常有效。我猜您對該運營部門在 2024 財年維持這種較低的兩位數水平有何看法。這個特定季度的任何異常情況，這正是您打算做的事情？

Yes. This is exactly what we set out to do. Fiscal '23, the driver was really productivity and really strengthening our operations and how we manage costs in driving that. And as we talked about, it would take time for those higher value-added products to start to work through our revenue flow. And so we started to see some of that show up in Q4, and we can see that showing up in Q1 and Q2.

是的。這正是我們打算要做的。 23 財年，真正的驅動力是生產力，真正加強了我們的運營，以及我們如何管理成本來推動它。正如我們所說，那些附加值更高的產品需要時間才能開始通過我們的收入流發揮作用。所以我們開始看到其中一些出現在第四季度，我們可以看到它出現在第一季度和第二季度。

So we probably won't get as big a step gains out of productivity going forward. But the good news is we've got the mix now coming in behind that gives us confidence that we're likely to sustain where we're at the high end of that 7% to 10% range we laid out for Glass, we're likely going to be at the high end of that as we move forward to fiscal '24, just given what we're seeing for product mix now flowing through.

因此，我們可能不會在未來的生產力方面取得如此大的進步。但好消息是，我們現在的組合已經落後，這讓我們有信心我們可能會維持在我們為 Glass 設定的 7% 到 10% 範圍的高端，我們'隨著我們進入 24 財年，考慮到我們現在看到的產品組合正在流動，我們可能會處於高端。

Okay. And then the somewhat higher levels of capital spending or CapEx for this fiscal year. What are you all focused on kind of beyond the maintenance level CapEx?

好的。然後本財年的資本支出或資本支出水平略高。你們都關注什麼超出維護水平資本支出？

Yes. So I'd say the last couple of years, most of that spend was tied to maintenance. We started to increase that spend in -- towards the second half of fiscal '23 on some of those growth investments, strategic investments for the business. Each of our segments are now above 12% return on invested capital. So frankly, from our view point, investment where they can bring a solid growth story and profit delivery story together for us to look at. So we're making some of those investments.

是的。所以我想說過去幾年，大部分支出都與維護有關。我們開始增加支出 - 到 23 財年下半年的一些增長投資，業務戰略投資。我們每個部門現在的投資資本回報率都超過 12%。坦率地說，從我們的角度來看，投資可以帶來穩固的增長故事和利潤交付故事，供我們一起研究。所以我們正在進行其中的一些投資。

It's -- we're not going to give guidance into fiscal '25, but I think you're seeing a bit of a bump in a step-up here in fiscal '24 related to some capacity investments, some automation investments that not only helps us with cost, but it helps us deal with tight labor markets and then some investments in systems that are -- help us better support our businesses and manage our product mix more effectively from a pricing and a margin perspective.

它是 - 我們不會為 25 財年提供指導，但我認為你會看到 24 財年與一些產能投資、一些自動化投資相關的升級有點突飛猛進，不僅幫助我們降低成本，但它幫助我們應對緊張的勞動力市場，然後對系統進行一些投資——幫助我們更好地支持我們的業務，並從定價和利潤的角度更有效地管理我們的產品組合。

(Operator Instructions) Our next question comes from Julio Romero with Sidoti.

（操作員說明）我們的下一個問題來自 Julio Romero 和 Sidoti。

I was hoping you could -- if we could stay on CapEx, just maybe a little more granularity into what businesses you expanded capacity and with that sizable $27 million CapEx deployment in the fourth quarter?

我希望你能——如果我們能繼續使用資本支出，也許可以更詳細地了解你擴展了哪些業務，並在第四季度部署了 2700 萬美元的資本支出？

Well, I would -- we avoid giving that detail on businesses. But I will tell you, we've spoken to you before, and I know there's been some stuff in local news. But Large-Scale Optical, we've made some investment in there. We've talked about wanting them to be able to expand beyond the custom Framing art business. They need capacity to be able to do that, and they've got good leads on that market. And it makes sense for us to make some of those capacity investments.

好吧，我會 - 我們避免提供有關企業的細節。但我會告訴你，我們以前和你談過，我知道當地新聞裡有一些東西。但是 Large-Scale Optical，我們在那裡做了一些投資。我們已經討論過希望他們能夠擴展到定制框架藝術業務之外。他們需要能力才能做到這一點，而且他們在那個市場上有很好的領先優勢。我們進行一些產能投資是有意義的。

So that got off the ground and spending started to ramp up for that investment in Q4. And then probably the other areas, Framing, where we have made some investments that will help them really strengthen their ability to drive high service levels for the business and then some automation and some equipment upgrades in other parts of the businesses.

這樣一來，第四季度的投資開始增加支出。然後可能是其他領域，Framing，我們在那裡進行了一些投資，這將幫助他們真正加強他們為業務推動高服務水平的能力，然後在業務的其他部分進行一些自動化和一些設備升級。

Okay. That's very helpful. And then turning back to the Glass business, you talked about earlier in the Q&A that you're towards the higher end of the range, and you've really had some good success in the Glass business with regards to productivity improvements.

好的。這很有幫助。然後回到 Glass 業務，你在問答中早些時候談到你正朝著範圍的高端邁進，你在 Glass 業務中確實在提高生產力方面取得了一些成功。

Just as we look at '24, would there be any upside to the full year op margins from maybe volume leverage and mix and less so from productivity? Or is the goal really just to kind of maintain the impressive margin performance from fiscal '23?

就像我們看 24 年一樣，全年的營業利潤率可能會因為產量槓桿和組合而不是生產力而有任何上升空間嗎？還是目標真的只是為了保持 23 財年令人印象深刻的利潤率表現？

Well, we made a lot of progress in fiscal '23 with Glass. And we would say that, that is sustainable from our view, even with flat volumes. What we're seeing now in Glass is that shift to premium. So that also helps support those margins. And provided those volumes continue to hold or even grow, then that's upside from a margin perspective for Glass. And then I think as we looked at Framing, we talked about -- Framing got tough Q1 comp because of that onetime gain, I mean, $4 million of that $5 million benefit was in Q1, but they've improved mix.

好吧，我們在 Glass 的 23 財年取得了很大進展。我們會說，從我們的角度來看，這是可持續的，即使銷量持平。我們現在在 Glass 中看到的是向高端產品的轉變。因此，這也有助於支持這些利潤率。如果這些銷量繼續保持甚至增長，那麼從利潤率的角度來看，這對 Glass 來說是有利的。然後我認為，當我們查看 Framing 時，我們談到了 - 由於一次性收益，Framing 在第一季度獲得了艱難的補償，我的意思是，第一季度的 500 萬美元收益中有 400 萬美元，但他們改善了組合。

And while we were doing some AMS work within Framing, we've really put the full quote press now like we did in Glass into Framing. So that gives us confidence that we're going to be able to hold margins even if market should weaken a little bit, we see a path to being able to manage that from some of the productivity work that's underway now using AMS within our Framing business.

當我們在 Framing 中進行一些 AMS 工作時，我們現在真的像在 Glass 中所做的那樣將完整的報價印刷機放入 Framing 中。因此，這讓我們有信心，即使市場應該稍微走弱，我們也能夠保持利潤率，我們從我們框架業務中使用 AMS 正在進行的一些生產力工作中看到了能夠管理這種情況的途徑.

Okay. Very good. And then maybe just last one for me. You talked earlier about the progress you've made on the Sotawall integration into Services. As you stand now, I guess, what's the biggest challenge you see going forward with regards to integrating that business as you head into fiscal '24?

好的。非常好。然後對我來說也許只是最後一個。您之前談到了將 Sotawall 集成到服務中所取得的進展。我想，就您現在的立場而言，在您進入 24 財年時，您認為在整合該業務方面面臨的最大挑戰是什麼？

Well, I'd say the team has done a really good job of moving the big rocks, if you will, as part of that integration and then you're just working to strengthen and clean up execution of the projects that were in flow in that facility in Canada. So that frankly hits them in Q4, as they finalize some of that work and did some cleanup around those projects.

好吧，我想說團隊在移動大石頭方面做得非常好，如果你願意的話，作為整合的一部分，然後你只是在努力加強和清理正在進行的項目的執行在加拿大的那個設施。因此，坦率地說，這在第四季度打擊了他們，因為他們完成了一些工作並圍繞這些項目做了一些清理工作。

So that ended up being a little bit worse than we had expected. As I commented on before, I think we're at a good foundational base now, and we expect that we'll see kind of that normal progression of continued margin improvement from Q1 to Q4. Remember, Services kind of has a low Q1 and then works their way up on how they manage their project flow for the year. So we think they'll be back on track with that and that we will see some margin improvement, probably not getting back into the range that we had set for them at our Investor Day just because they finalize some of those projects that were sold under the Sotawall brand that ended up being lower margin than we would like to see within our Services segment.

所以結果比我們預期的要差一點。正如我之前評論的那樣，我認為我們現在處於一個良好的基礎上，我們預計我們會看到從第一季度到第四季度持續提高利潤率的正常進展。請記住，服務的 Q1 有點低，然後在他們管理當年項目流程的方式上逐步提高。所以我們認為他們會回到正軌，我們會看到利潤率有所改善，可能不會回到我們在投資者日為他們設定的範圍，只是因為他們完成了其中一些出售的項目Sotawall 品牌最終的利潤率低於我們希望在我們的服務部門看到的利潤率。

But as they get those behind us and start to move more fully into the Harmon model, then as we get into fiscal '25, we think we start to get back into that 7% to 9% margin range for Services.

但隨著他們支持我們並開始更全面地進入 Harmon 模型，然後當我們進入 25 財年時，我們認為我們開始回到服務的 7% 到 9% 的利潤率範圍。

Yes. Maybe if I could just add, Services isn't being excluded from AMS as well. And as part of the Sotawall integration, AMS is in its infancy, I would say, at Sotawall. So there's still an opportunity to improve margins through that as well.

是的。也許如果我可以補充一點，服務也不會被排除在 AMS 之外。作為 Sotawall 集成的一部分，我想說，AMS 在 Sotawall 還處於起步階段。因此，仍然有機會通過它來提高利潤率。

I show no further questions at this time. I would now like to turn the conference back to Ty Silberhorn, CEO, for closing remarks.

我現在沒有進一步的問題。我現在想把會議轉回首席執行官 Ty Silberhorn 的閉幕詞。

All right. Well, thanks, everyone, for joining us today, and a big thanks to our team for delivering a record year. And we're confident on our ability to build on this success in fiscal '24. Have a great day, and we'll talk to you in a few months.

好的。嗯，謝謝大家今天加入我們，非常感謝我們的團隊創造了創紀錄的一年。我們對我們在 24 財年取得成功的能力充滿信心。祝你今天愉快，我們將在幾個月後與你交談。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。