Acuity Brands Inc (AYI) 2023 Q4 法說會逐字稿

Good morning, and welcome to the Acuity Brands Fiscal 2023 Fourth Quarter and Full Year Earnings Call. After the speaker's presentation, the company will conduct a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Charlotte McLaughlin, Vice President of Investor Relations. Charlotte, please go ahead.

早上好，歡迎參加 Acuity Brands 2023 財年第四季和全年財報電話會議。演講者演講結束後，公司將進行問答環節。請注意，今天的會議正在錄製中。現在我想將會議交給投資者關係副總裁夏洛特·麥克勞克林 (Charlotte McLaughlin)。夏洛特，請繼續。

Thank you, Liz. Good morning, and welcome to the Acuity Brands Fiscal 2023 Fourth Quarter and Full Year Earnings Call. As a reminder, some of our comments today may be forward-looking statements based on our management's beliefs and assumptions and information currently available to our management at this time. These beliefs are subject to known and unknown risks and uncertainties, many of which may be beyond our control, including those detailed in our periodic SEC filings.

謝謝你，莉茲。早上好，歡迎參加 Acuity Brands 2023 財年第四季和全年財報電話會議。提醒一下，我們今天的一些評論可能是基於我們管理層的信念和假設以及我們管理層目前可獲得的資訊的前瞻性陳述。這些信念受到已知和未知的風險和不確定性的影響，其中許多風險和不確定性可能超出我們的控制範圍，包括我們定期向 SEC 文件中詳細說明的風險和不確定性。

Please note that our company's actual results may differ materially from those anticipated, and we undertake no obligation to update these statements. Reconciliations of certain non-GAAP financial metrics with our corresponding GAAP measures are available in our 2023 fourth quarter and full year earnings release, which is available on our Investor Relations website at www.investors.acuitybrands.com.

請注意，我們公司的實際結果可能與預期有重大差異，我們不承擔更新這些聲明的義務。我們的 2023 年第四季和全年財報中提供了某些非 GAAP 財務指標與相應 GAAP 指標的對賬，該報告可在我們的投資者關係網站 www.investors.acuitybrands.com 上查閱。

With me this morning is Neil Ashe, our Chairman, President and Chief Executive Officer, who will provide an update on our strategy and give an overview of our full year highlights; and also Karen Holcom, our Senior Vice President and Chief Financial Officer, who will walk us through our fourth quarter performance and full financial year performance as well as provide an outlook for our full year fiscal 2024.

今天早上與我在一起的是我們的董事長、總裁兼首席執行官尼爾·阿什 (Neil Ashe)，他將介紹我們的戰略最新情況，並概述我們全年的亮點；還有我們的高級副總裁兼財務長 Karen Holcom，她將向我們介紹我們第四季度的業績和整個財政年度的業績，並提供 2024 財年全年的展望。

There will be an opportunity for Q&A at the end of this call. For those participating, please limit your remarks to 1 question and 1 follow-up, if necessary. We are webcasting today's conference call live. Thank you for your interest in Acuity Brands. I will now turn the call over to Neil Ashe.

本次電話會議結束時將有一個問答機會。對於參與的人，如有必要，請將您的評論限制在 1 個問題和 1 次跟進。我們對今天的電話會議進行網路直播。感謝您對 Acuity Brands 的興趣。我現在將把電話轉給尼爾·阿什。

Thank you, Charlotte, and good morning to all of you joining us. Our fiscal fourth quarter performance demonstrated excellent execution. Our focus on margin and cash generation led to increased adjusted operating profit margin and higher adjusted diluted earnings per share despite a decline in sales in the lighting business.

謝謝你，夏洛特，祝所有加入我們的人早安。我們第四財季的業績表現出優異的執行力。儘管照明業務銷售額下降，但我們對利潤率和現金產生的關注導致調整後營業利潤率和調整後稀釋每股收益增加。

This quarter concluded a successful year. We delivered strong financial performance. We continue to improve our businesses, and we allocated capital effectively. Throughout fiscal 2023, both our lighting and spaces teams made meaningful progress driving our business forward.

本季結束了成功的一年。我們取得了強勁的財務業績。我們不斷改善我們的業務，並有效地配置資本。在整個 2023 財年，我們的照明和空間團隊都取得了有意義的進展，推動了我們的業務向前發展。

In our Acuity Brands Lighting and Lighting Controls business, our strategy is to increase product vitality, improve service levels, use technology to improve and differentiate both our products and our services and to drive productivity.

在我們的 Acuity Brands 照明和照明控制業務中，我們的策略是提高產品活力、提高服務水準、利用技術來改善和差異化我們的產品和服務，並提高生產力。

In 2023, we realigned our product portfolio through the introduction of Design Select. We now have 3 defined ways in which we go to market: Contractor Select, Design Select and Made to Order. By combining a high product vitality and improved service levels, Design Select allows us to better serve lighting specifiers, distributors and electrical contractors.

2023 年，我們透過引入 Design Select 重新調整了我們的產品組合。我們現在有 3 種明確的進入市場的方式：承包商選擇、設計選擇和客製化。透過將高產品活力和改進的服務水準相結合，Design Select 使我們能夠更好地為照明規格製定者、分銷商和電氣承包商提供服務。

The realignment of our portfolio, together with our ongoing product vitality efforts, has allowed us to strategically manage price in a dynamic environment, while the ongoing productivity improvements in our supply chain continue to improve our processes and manage our costs. We also continuously evaluate our portfolio. This year, that evaluation resulted in the divestiture of our Sunoptics daylighting business and the decision to exit Winona custom architectural lighting solutions. There's a bit of noise in the numbers this quarter, resulting from a series of actions.

我們產品組合的重新調整，加上我們持續的產品活力努力，使我們能夠在動態環境中策略性地管理價格，同時我們供應鏈中持續生產力的提高繼續改進我們的流程並管理我們的成本。我們也不斷評估我們的投資組合。今年，該評估導致我們剝離 Sunoptics 日光照明業務，並決定退出 Winona 客製化建築照明解決方案。由於一系列行動，本季的數字有些噪音。

The first is the result of our ongoing transformation efforts. We have redefined our work, where and how it is done, resulting in organizational changes that will lead to more efficiencies. The second are charges primarily for impairment of trade names related to prior acquisitions. The third charge resulted from the collectibility of a supplier warranty obligation owed to us for components we use in products manufactured and sold between 2017 and 2019.

第一個是我們持續轉型努力的成果。我們重新定義了我們的工作、工作地點和方式，從而進行組織變革，從而提高效率。第二項費用主要針對先前收購相關的商號減損。第三項指控是由於我們在 2017 年至 2019 年期間製造和銷售的產品中使用的組件而產生的供應商保固義務。

Karen will cover each of these in more detail. This year, our teams have refreshed approximately 20% of our product portfolio and have introduced many new product families. I'd like to highlight our American Electric lighting brand, where we launched AutoConnect, which is a durable, value-driven solution for outdoor infrastructure lighting that includes connected luminaires for roadway, industrial and commercial applications.

凱倫將更詳細地介紹每一個內容。今年，我們的團隊更新了約 20% 的產品組合，並推出了許多新產品系列。我想重點介紹我們的 American Electric 照明品牌，我們在此推出了 AutoConnect，這是一種耐用、價值驅動的戶外基礎設施照明解決方案，包括用於道路、工業和商業應用的連網燈具。

The rollout was targeted to coincide with the anticipated increase of infrastructure investments and positions us well for continued success. In August of this year, the City of Philadelphia announced that it has selected our American Electric Lighting outdoor lighting product as a major supplier for the Philadelphia Streetlight Improvement Project. The citywide project will replace and connect approximately 130,000 street lights into a network of more efficient, longer-lasting remotely controlled LED lights, which is expected to reduce street lighting energy usage by more than 50% and is expected to reduce municipal carbon emissions by more than 9%.

此次推出的目的是與預期的基礎設施投資增加相一致，並使我們能夠繼續取得成功。今年8月，費城市宣布選擇我們的American Electric Lighting戶外照明產品作為費城路燈改善項目的主要供應商。該全市項目將更換約 13 萬盞路燈，並將其連接成更有效率、更持久的遠端控制 LED 燈網絡，預計將減少 50% 以上的街道照明能源使用量，並有望將城市碳排放量減少更多超過9%。

Our team continued to be recognized for our innovation and the value that our products bring to our customers. In the fourth quarter, 6 of our lighting solutions were selected for the 2023 Illuminating Engineering Society Progress Report, which showcases the year's most significant advancements in the art and science of lighting, including our warm dim technology for Aculux, emergency battery backup cylinders from Gotham, and flame lighting technique from Hydrel.

我們的團隊因我們的創新和我們的產品為客戶帶來的價值而繼續獲得認可。第四季度，我們的 6 個照明解決方案入選 2023 年照明工程學會進展報告，該報告展示了今年在照明藝術和科學方面最重大的進步，包括我們的 Aculux 暖暗技術、Gotham 的應急電池備用氣缸，以及Hydrel 的火焰照明技術。

Our marketing team was also announced as a winner of the Best of the Best Marketing Award for 2023 by the Electrical Distributor Magazine. Now moving to spaces, where we had another great year. The strategy for our Intelligent Spaces business is to make spaces smarter, safer and greener by connecting the edge to the cloud.

我們的行銷團隊也榮獲《電氣經銷商雜誌》頒發的 2023 年最佳行銷獎。現在轉移到太空，我們在那裡又度過了美好的一年。我們智慧空間業務的策略是透過將邊緣連接到雲，使空間變得更智慧、更安全、更環保。

Distech has the best edge control devices on the market, and Atrius will be the best in cloud applications. Our strategic priority for Distech is to expand our addressable market in 2 ways. The first is geographic, and the second is increasing what we control in a built space.

Distech 擁有市場上最好的邊緣控制設備，而 Atrius 將是雲端應用領域最好的。 Distech 的策略重點是透過兩種方式擴大我們的目標市場。第一個是地理上的，第二個是增加我們對建築空間的控制。

In 2023, we continue to drive this strategy forward by establishing a presence in the U.K. market and through the acquisition of KE2 Therm, which added commercial refrigeration controls to our portfolio. The integration of KE2 Therm is progressing well, and we rounded out a successful year with them being awarded a 2023 Dealer Design Award.

2023 年，我們將透過在英國市場建立業務並收購 KE2 Therm（為我們的產品組合增添商用冷凍控制）來繼續推動這項策略。 KE2 Therm 的整合進展順利，我們圓滿結束了這一年，他們榮獲了 2023 年經銷商設計獎。

Earlier this year, we launched Atrius Data Lab, the intersection point between the edge devices and Distech and the applications in the cloud. Atrius Data Lab is a foundational to our ability to automate the environment of a built space and help ensure that our partners achieve their specific energy and sustainability goals.

今年早些時候，我們推出了 Atrius 數據實驗室，這是邊緣設備、Distech 和雲端應用程式之間的交叉點。 Atrius 數據實驗室是我們實現建築空間環境自動化並幫助確保我們的合作夥伴實現其特定能源和永續發展目標的能力的基礎。

During the quarter, Atrius was named as a Sustainability Leadership Award winner in the 2023 Sustainability Awards program. The program honors people, teams and organizations who have made sustainability an integral part of their business practice or overall mission. I'm pleased with the progress we have made as a team in 2023.

本季度，Atrius 在 2023 年永續發展獎計畫中被評為永續發展領導獎得主。該計劃旨在表彰那些將永續發展作為其業務實踐或整體使命不可或缺的一部分的個人、團隊和組織。我對我們團隊在 2023 年的進步感到滿意。

We have successfully positioned our company at the intersection of sustainability and technology, setting ourselves up for long-term growth by taking advantage of 2 of the most important megatrends: minimizing the impacts of climate change and maximizing the impacts of technology.

我們成功地將公司定位在永續發展和技術的交叉點，透過利用兩個最重要的大趨勢來實現長期成長：最大限度地減少氣候變遷的影響和最大限度地提高技術的影響。

Our ABL business continue to lead as the largest lighting and lighting controls company in North America. And we have made the business more predictable, repeatable and scalable by focusing on product vitality, improving service levels, the use of technology throughout the business and driving productivity. Our spaces business continued to grow as an attractive technology business that connects the edge to the cloud for built spaces.

我們的 ABL 業務繼續作為北美最大的照明和照明控制公司處於領先地位。透過專注於產品活力、提高服務水準、在整個業務中使用技術以及提高生產力，我們使業務變得更加可預測、可重複和可擴展。我們的空間業務持續成長，成為一項有吸引力的技術業務，將建築空間的邊緣與雲端連接起來。

Distech has a significant technology advantage that we can continue to expand as the mechanical and analog controls of today become digital over time. And Atrius introduced new applications in the cloud that are already making a difference for our customers. We have changed how the company works for a better, smarter, faster operating system.

Distech 擁有顯著的技術優勢，隨著當今的機械和類比控制隨著時間的推移變得數位化，我們可以繼續擴大這一優勢。 Atrius 在雲端中推出了新的應用程序，這些應用程式已經為我們的客戶帶來了改變。我們改變了公司的工作方式，打造更好、更智慧、更快的作業系統。

Better, smarter, faster is the combination of processes, tools and ways of working that spans from strategy to people to operating rhythms to problem solving. It is unique to our organization and allows us to drive strategic alignment, manage change and deliver results.

更好、更聰明、更快是流程、工具和工作方式的結合，涵蓋從策略到人員、營運節奏到問題解決。它對我們的組織來說是獨一無二的，使我們能夠推動策略調整、管理變革並交付成果。

Our values are at the core of our culture and help create a shared purpose for achieving our company's strategic goals. We make decisions based on our values, and these values impact how we treat each other and how we serve our customers. The combination of better, smarter, faster and our values allows us to operate more efficiently with greater distribution of responsibility and accountability throughout the company. It is how we continue to improve our businesses and respond quickly and effectively to changing economic environments.

我們的價值觀是我們文化的核心，有助於創造實現公司策略目標的共同目標。我們根據我們的價值觀做出決策，這些價值觀影響我們如何對待彼此以及我們如何服務客戶。更好、更聰明、更快與我們的價值觀相結合，使我們能夠更有效地運營，並在整個公司範圍內更好地分配責任和義務。這是我們不斷改進業務並快速有效地應對不斷變化的經濟環境的方式。

The alignment of everyone in our organization through our value creation model, through our total rewards framework compounds that responsibility and accountability. Our associates understand how they contribute to our overall strategy. If you stop people in our company and ask them how we create value, they will answer we grow net sales, we turn those profits into cash, and we don't grow the balance sheet as fast.

透過我們的價值創造模型、透過我們的整體獎勵框架，我們組織中的每個人都保持一致，從而增強了責任和義務。我們的員工了解他們如何為我們的整體策略做出貢獻。如果你攔住我們公司的人，問他們我們如何創造價值，他們會回答我們增加淨銷售額，我們將這些利潤轉化為現金，而且我們的資產負債表增長速度不那麼快。

This year, we have continued to demonstrate that we are effective capital allocators. We have invested for growth in our current businesses through R&D and capital expenditures. We've enhanced our portfolio through the exit of Sunoptics and the acquisition of KE2 Therm. We've maintained our dividend, and we've created a permanent shareholder value with approximately $1.3 billion in share repurchases since the beginning of the fourth quarter of fiscal 2020, which amounts to about 23% of the then shares outstanding.

今年，我們繼續證明我們是有效的資本配置者。我們透過研發和資本支出來投資當前業務的成長。我們透過退出 Sunoptics 和收購 KE2 Therm 增強了我們的產品組合。我們維持了股息，自 2020 財年第四季開始以來，我們透過約 13 億美元的股票回購創造了永久股東價值，相當於當時已發行股票的 23% 左右。

As we turn to our fiscal 2024, our strategic priorities remain the same. In our lighting business, we will continue to drive margin and cash flow. We expect roughly the same market conditions in lighting for the remainder of this calendar year, with the potential for some improvement in the next calendar year.

當我們轉向 2024 財年時，我們的策略重點保持不變。在我們的照明業務中，我們將繼續提高利潤率和現金流。我們預計今年剩餘時間照明市場狀況大致相同，明年可能會有所改善。

We will continue to grow our Intelligence Spaces group in 3 ways: Geographically, by adding control planes and by delivering applications that make a difference in built spaces. We will continue the development of our better, smarter, faster operating system in order to improve our current businesses and those that we acquire in the future, and we will continue to allocate capital consistent with our priorities.

我們將透過三種方式繼續發展我們的智慧空間團隊：在地理上，透過添加控制平面以及提供對建築空間產生影響的應用程式。我們將繼續開發更好、更智慧、更快的作業系統，以改善我們目前的業務和未來收購的業務，我們將繼續根據我們的優先事項分配資本。

Now I'll turn the call over to Karen, who will update you on our 2023 performance and provide more details about 2024.

現在我將把電話轉給凱倫，她將向您介紹我們 2023 年業績的最新情況，並提供有關 2024 年的更多詳細資訊。

Thank you, Neil, and good morning to everyone on the call. We executed well throughout fiscal 2023. In a challenging sales environment in the lighting business, we improved our adjusted operating profit by $9 million year-over-year and generated cash flow from operations of $578 million.

謝謝你，尼爾，祝所有參加電話會議的人早安。我們在整個 2023 財年表現良好。在照明業務充滿挑戰的銷售環境中，我們調整後的營業利潤同比提高了 900 萬美元，營運現金流達到 5.78 億美元。

We continue to improve our businesses and allocated capital effectively. For total AYI, we generated net sales in the fourth quarter of approximately $1 billion, which was $100 million or 9% lower than the prior year as a result of the decline in net sales in our ABL business. This was partially offset by continued growth in the ISG business of 17% in the quarter.

我們不斷改善業務並有效配置資本。就 AYI 總額而言，我們第四季的淨銷售額約為 10 億美元，比上年減少 1 億美元，即 9%，這是由於 ABL 業務淨銷售額下降。這被本季 ISG 業務 17% 的持續成長所部分抵銷。

We continue to deliver year-over-year margin improvement. During the quarter, our adjusted operating profit was down year-over-year on lower sales, while we expanded adjusted operating profit margin to 16.1%, an increase of approximately 80 basis points from the prior year. The increase was driven largely by the significant improvement in our gross profit margin as we continue to strategically manage price and costs.

我們持續實現利潤率年增。本季度，由於銷售額下降，我們的調整後營業利潤年減，同時我們將調整後營業利潤率擴大至 16.1%，比上年增加約 80 個基點。這一增長主要是由於我們繼續對價格和成本進行策略性管理，毛利率顯著提高。

During the quarter, our adjusted diluted earnings per share of $3.97 increased $0.02 or 1% over the prior year. In ABL, net sales were $944 million in the quarter, a decrease of 11% compared with the prior year, driven by declines across most of our channels, offset slightly by continued strong performance in our retail channel.

本季度，我們調整後的稀釋每股收益為 3.97 美元，比前一年增加 0.02 美元，即 1%。在 ABL 中，本季淨銷售額為 9.44 億美元，與上年相比下降 11%，這是由於我們大多數通路的下滑所推動的，但被我們零售通路持續強勁的業績所略微抵消。

ABL's adjusted operating profit decreased 2% to $159 million on lower net sales. And we delivered adjusted operating profit margin of 16.8%, a 150 basis point improvement over the prior year as we strategically managed price and input costs improved, particularly steel and inbound freight.

由於淨銷售額下降，ABL 調整後營業利潤下降 2%，至 1.59 億美元。我們的調整後營業利潤率為 16.8%，比前一年提高了 150 個基點，因為我們對價格進行了策略性管理，投入成本有所改善，特別是鋼鐵和入境貨運成本。

As Neil mentioned at the beginning of the call, we also took several charges during the quarter that's primarily related to ABL. Taken together, these amounted to $35.5 million in nonrecurring pretax charges or $0.87 in diluted earnings per share. The first is a result of our ongoing transformation efforts and includes a charge of $6 million in severance as we realigned how we work.

正如 Neil 在電話會議開始時所提到的，我們在本季也收取了幾項主要與 ABL 相關的費用。合計起來，這些非經常性稅前費用達 3,550 萬美元，稀釋每股收益達 0.87 美元。第一個是我們持續轉型努力的成果，其中包括我們在重新調整工作方式時支付的 600 萬美元遣散費。

The second is a $16.5 million noncash impairment charge for a small investment and for certain trade names related to prior acquisitions. In addition, we transitioned several of those trade names from indefinite to definite lives to more accurately reflect their value.

第二項是針對小額投資和與先前收購相關的某些商品名稱的 1,650 萬美元非現金減損費用。此外，我們將其中幾個商品名稱從無限期改為有限期，以更準確地反映其價值。

The third is a $13 million pretax noncash charge for the impairment of a receivable based on its collectibility. The receivable is from a supplier who owes us a warranty obligation related to the recovery of quality costs we have incurred for certain ABL outdoor lighting products manufactured and sold between 2017 and 2019. We are pursuing recovery from the supplier.

第三項是基於應收帳款可收回性的 1,300 萬美元稅前非現金費用，用於應收帳款減損。該應收帳款來自一家供應商，該供應商對我們負有保固義務，涉及收回我們在2017 年至2019 年期間生產和銷售的某些ABL 戶外照明產品所產生的品質成本。我們正在向供應商追償。

ISG's net sales for the fourth quarter were $72 million, an increase of 17%, as Distech continued to win business across new and existing customers. This quarter, we also had a modest benefit from the acquisition of KE2 Therm. ISG's adjusted operating profit was $14 million, which was a decline of approximately 3% over the prior year as we continued to invest in the business for long-term growth.

由於 Distech 繼續贏得新舊客戶的業務，ISG 第四季的淨銷售額為 7,200 萬美元，成長了 17%。本季度，我們也從收購 KE2 Therm 中獲得了一定的收益。 ISG 的調整後營業利潤為 1,400 萬美元，比上年下降約 3%，因為我們繼續投資該業務以實現長期成長。

Now turning to our cash flow performance. We generated $578 million of cash flow from operating activities for the full year of fiscal 2023, an increase of $262 million over the prior year, driven largely by improvements in working capital. We've improved both days of inventory and accounts receivable compared to the end of fiscal 2022.

現在轉向我們的現金流表現。 2023 財年全年，我們從營運活動中產生了 5.78 億美元的現金流，比前一年增加了 2.62 億美元，這主要是由於營運資本的改善。與 2022 財年末相比，我們的庫存天數和應收帳款週轉率均有所改善。

In fiscal 2023, we invested $67 million in capital expenditures and allocated $269 million to repurchase approximately 1.6 million shares. Since the beginning of the fourth quarter of fiscal 2020, we have repurchased over 9 million shares at an average price of approximately $143 per share, which was funded by organic cash flow.

2023財年，我們投資了6,700萬美元的資本支出，並撥款2.69億美元回購約160萬股股票。自 2020 財年第四季初以來，我們以每股約 143 美元的平均價格回購了超過 900 萬股股票，資金來源為有機現金流。

I now want to spend a few minutes expanding on our outlook for 2024. Consistent with our 2023 guidance, we are going to provide annual guidance anchored around net sales and adjusted diluted EPS. We will also provide you with certain assumptions, which you can find in the supplemental presentation available on our website after the conclusion of this call.

我現在想花幾分鐘擴展一下我們對 2024 年的展望。與我們的 2023 年指導一致，我們將提供以淨銷售額和調整後稀釋每股收益為基礎的年度指導。我們還將向您提供某些假設，您可以在本次電話會議結束後在我們網站上提供的補充簡報中找到這些假設。

For full year fiscal 2024, our expectation is that net sales will be within the range of $3.7 billion and $4 billion for total AYI. This is based on the assumptions that ABL will deliver sales down low to mid-single digits as a result of conditions in the lighting macro environment. And ISG will continue to generate sales growth in the mid-teens as we continue to take share and expand geographically and into new control planes.

對於 2024 財年全年，我們預計 AYI 總淨銷售額將在 37 億美元至 40 億美元之間。這是基於這樣的假設：由於照明宏觀環境的原因，ABL 的銷售額將下降到低至中個位數。隨著我們繼續佔據市場份額並在地理上和新的控制平面上進行擴張，ISG 將繼續在十幾歲左右實現銷售成長。

We expect to deliver adjusted diluted earnings per share within the range of $13 to $14.50 for total AYI. Our capital allocation and priority -- our capital allocation priorities in 2024 are unchanged, and we will continue to focus on delivering margin and cash flow.

我們預計調整後的稀釋後每股收益將在 AYI 總額 13 美元至 14.50 美元之間。我們的資本配置和優先順序－我們2024年的資本配置優先順序保持不變，我們將繼續專注於提供利潤和現金流。

In conclusion, we strategically managed price and cost and delivered margin growth at ABL. We continue to grow the Intelligent Spaces Group. We generated strong cash flow from operations and allocated capital effectively. We continue to improve the business through product and productivity improvements, and we continue to take the steps necessary to drive our transformation forward.

總之，我們對 ABL 的價格和成本進行了策略性管理，並實現了利潤成長。我們繼續發展智慧空間集團。我們透過營運產生了強勁的現金流並有效地配置了資本。我們繼續透過產品和生產力的改進來改善業務，並繼續採取必要的步驟來推動我們的轉型。

Thank you for joining us today. I will now pass you over to the operator to take your questions.

感謝您今天加入我們。現在我將把您轉交給接線員回答您的問題。

(Operator Instructions) Our first question comes from the line of Tim Wojs with Baird.

（操作員說明）我們的第一個問題來自 Tim Wojs 和 Baird 的線路。

Maybe, Neil, just to start, anything from an environment perspective, just any color that you could maybe provide on kind of what you're seeing kind of in the end market demand environment, maybe the quoting environment today? And your comments maybe about calendar year '24 maybe being a bit better. Is that just kind of starting to cycle easier comparisons? Or is there something that you're kind of seeing from a visibility perspective that you'd call out?

尼爾，也許只是開始，從環境的角度來看，任何你可以提供的顏色，你在最終市場需求環境中看到的，也許是今天的報價環境？您對 24 日曆年的評論可能會好一點。這是否只是開始進行更簡單的比較？或者你是否從可見性的角度看到了一些你會呼籲的東西？

Yes, thanks for the question. So first of all, we're really proud with our performance. We've obviously demonstrated that we can execute in this environment. And I wish the economy would line up with our fiscal year, but it doesn't.

是的，謝謝你的提問。首先，我們對我們的表現感到非常自豪。我們顯然已經證明我們可以在這種環境中執行。我希望經濟能與我們的財政年度保持一致，但事實並非如此。

So the -- as we're looking forward to kind of our fiscal first quarter and the rest of this year, while the business is relatively consistent, it's pretty much choppy all over. So we feel good about kind of where we guided for the year given that. And we also feel like there's still strong kind of volume in each of our networks.

因此，正如我們所期待的第一財季和今年剩餘時間一樣，雖然業務相對穩定，但整體上相當不穩定。因此，有鑑於此，我們對今年的指導感到滿意。我們也覺得我們的每個網路中仍然有很大的數量。

So the C&I network, obviously, is about 60% of the business. As Karen pointed out, the retail business has remained strong for us. The direct business has been comparatively strong for us. And as you can see in our channel, the OEM business is down, which is our sales to other lighting manufacturers. So taken together then, we feel like we're comfortable operating in this environment and we feel like we've got a responsible plan for 2024.

因此，顯然，C&I 網路約佔業務的 60%。正如凱倫指出的那樣，我們的零售業務仍然強勁。我們的直接業務相對強勁。正如您在我們的管道中看到的，OEM 業務正在下降，這是我們對其他照明製造商的銷售。因此，總的來說，我們覺得在這種環境下運作很舒服，而且我們覺得我們已經為 2024 年制定了一個負責任的計劃。

Okay. Okay. Good. And then just, Karen, just when you think about guidance, and I guess, high-level, sales down kind of low to mid-single digits. It's -- at least in ABL business, I think it's down 3% overall. And I think that the midpoint of the EPS range winds up being down 2%. Could you just maybe give us kind of the puts and takes or what to think about in terms of kind of managing maybe a down volume environment versus kind of keeping margins what appears to be pretty stable?

好的。好的。好的。然後，凱倫，當你考慮指導時，我猜，高層銷售額會下降到低至中個位數。至少在 ABL 業務中，我認為整體下降了 3%。我認為 EPS 範圍的中點最終會下降 2%。您能否給我們一些看跌期權和看跌期權，或者在管理可能是成交量下降的環境與保持利潤率（看起來相當穩定）方面要考慮什麼？

Yes, sure. Thanks, Tim. So the guidance, just to reiterate, the guidance for the net sales range is $3.7 billion to $4 billion, and you'll see all this in the presentation. That does anticipate that lighting would be down low to mid-single digits as we discussed, kind of the continuation of the trends that Neil talked about just a moment ago.

是的，當然。謝謝，蒂姆。因此，重申一下，淨銷售額的指導範圍是 37 億美元至 40 億美元，您將在簡報中看到所有這些。正如我們所討論的那樣，這確實預計照明將下降至中個位數，這是尼爾剛才談到的趨勢的延續。

When we look at the margin that we expect to maintain, it's a solid plan. And we don't expect to stay kind of at the high levels that we are now, but we still expect to be able to strategically manage our product vitality, our service levels, our technology and productivity to continue to deliver strong performance that would land us in the EPS range of $13 and $14.50 for the year.

當我們考慮預期維持的利潤時，這是一個可靠的計劃。我們並不期望保持現在的高水平，但我們仍然期望能夠策略性地管理我們的產品活力、服務水平、技術和生產力，以繼續提供強勁的業績，從而實現今年每股收益範圍為13 至14.50 美元。

I would just call out ISG, we're still predicting up to mid-teens in that business. So that's still going to continue to grow next year. The acquisition of KE2 Therm will be a benefit as well. So really, really pleased with the performance overall.

我只想指出 ISG，我們仍然預測該行業的銷售額將達到十幾歲左右。因此，明年這一數字仍將持續成長。收購 KE2 Therm 也將帶來好處。對整體表現非常非常滿意。

Our next question comes from the line of Ryan Merkel from William Blair. Our next question comes from Joe O'Dea with Wells Fargo.

我們的下一個問題來自威廉布萊爾的瑞安默克爾。我們的下一個問題來自富國銀行的 Joe O'Dea。

I guess first question is just the sort of combination of sort of channel inventory management and then the macro. And so what you've seen over the course of the past few months, what you're anticipating through kind of the rest of this year in terms of any additional headwinds related to destock? Or is there a little bit of a transition where macro has gotten a little bit choppier, but destock gets a little bit less challenging.

我想第一個問題只是通路庫存管理與宏觀的結合。那麼，您在過去幾個月中看到了什麼，您對今年剩餘時間的與去庫存相關的任何額外阻力有何預期？或者是否存在一些過渡，宏觀經濟變得有點波動，但去庫存的挑戰變得不那麼困難。

Yes. So just for just a little bit of historical context as we kind of recreate FY '23, obviously, we burned through backlog through the first half of our fiscal 2023. We talked extensively through the remainder of the year at how lead times have compressed, and that's led to the destocking you referred to.

是的。因此，當我們重新創建 23 財年時，只是為了了解一點歷史背景，顯然，我們在 2023 財年上半年燒毀了積壓訂單。我們在今年剩餘時間裡廣泛討論了交貨時間是如何壓縮的，這導致了你提到的去庫存。

We're now getting to a more normal relationship between order rate and shipment rate. So we're starting to, and that's what I was alluding to in the answer to Tim's question, we still -- we're comfortable operating in this environment. So I think what we are experiencing now are macro lighting trends.

我們現在在訂單率和出貨率之間建立了更正常的關係。所以我們開始這樣做，這就是我在回答蒂姆問題時提到的，我們仍然——我們在這種環境中運作很舒服。所以我認為我們現在正在經歷的是宏觀照明趨勢。

And unfortunately, we're in a period where people are just buying less lighting and lighting controls. I'll also highlight, though, that as Karen pointed out, the Intelligence basis group continues to grow mid-teens. So the portfolio of the business is expanding. At the same time, in both the Lighting business and the Spaces business, we've been able to layer in margin despite the decline in sales at ABL.

不幸的是，我們正處於一個人們購買的照明和照明控制器減少的時期。不過，我還要強調，正如凱倫指出的那樣，情報基礎群體繼續在青少年中成長。因此，業務組合正在擴大。同時，在照明業務和空間業務中，儘管 ABL 的銷售額下降，我們仍然能夠實現利潤分層。

Got it. And then on the cash side, I think another year of solid cash generation. You did less on the buyback side. You ended with cash in a pretty strong position. And so just any commentary around what you might be seeing on the M&A pipeline side of things? Or is it kind of as you're monitoring may be a little bit choppier environment, the bias to hold a little bit more cash, how we should think about buyback posture in 2024?

知道了。然後在現金方面，我認為又是一個穩定的現金產生年。你在回購方面做得較少。最終您的現金處於相當有利的地位。那麼，關於您可能在併購管道方面看到的任何評論嗎？或者是因為您正在監測的環境可能會更加波動，傾向於持有更多現金，我們應該如何考慮 2024 年的回購姿勢？

Yes. Thank you, Joe. You'll see in the presentation that we'll post, we've talked about some of the assumptions that reflect our cash priorities for next year. So our cash -- our capital allocation priorities are going to be the same. First to invest in our current businesses for growth; second, to invest in M&A; third, to maintain our dividend; and fourth, will be share repurchases.

是的。謝謝你，喬。您將在我們發布的簡報中看到，我們討論了一些反映我們明年現金優先事項的假設。因此，我們的現金－我們的資本配置優先順序將是相同的。首先投資於我們目前的業務以實現成長；第二，投資併購；第三，維持我們的股利；第四，股票回購。

And so at this point, we've repurchased about 23% of our shares since we started at the beginning of fiscal -- fourth quarter of fiscal 2020. And so we're looking at this upcoming year about $40 million to $60 million in share repurchases is what we would expect, and you'll see that in the presentation. And then, Neil, do you want to comment on?

因此，自 2020 財年第四季開始以來，我們目前已經回購了約 23% 的股票。因此，我們預計明年將回購約 4,000 萬至 6,000 萬美元的股票回購是我們所期望的，您將在演示中看到這一點。然後，尼爾，你想發表評論嗎？

I'd just add a couple of things, Joe. First is, obviously, we have done, I think, a very -- an outstanding job of generating cash. So through layering in margin and aggressive management of our balance sheet and working capital, especially on the lighting side, we've demonstrated the ability to generate a significant amount of cash.

我只想補充幾件事，喬。首先，我認為，顯然我們在創造現金方面做得非常好。因此，透過分層保證金以及對資產負債表和營運資本的積極管理，特別是在照明方面，我們已經證明了產生大量現金的能力。

Our priorities, as Karen outlined, are -- remain the same. We want to grow our business. And so -- but when the market presents us with opportunities, we will take advantage of those opportunities to repurchase shares. We've demonstrated since we've been here over the last 2.5 years that when the stock goes down, we buy more and when the stock goes up, we buy less.

正如凱倫所概述的那樣，我們的優先事項是——保持不變。我們想要發展我們的業務。所以，當市場為我們帶來機會時，我們會利用這些機會回購股票。自從過去 2.5 年以來，我們已經證明，當股票下跌時，我們買入更多，當股票上漲時，我們買入更少。

And -- but our focus and our priorities are in the order and Karen mentioned them. We want to grow our current business and we want to grow the platform through acquisitions. And we feel good about our opportunities in all of those. On the acquisition side, our priority is the -- is to continue to add to our Intelligence Spaces Group. We think that there are very interesting and in some cases, meaningful opportunities to expand there. And so that's where we're spending the most of our time. But we are also open for business on the lighting side to other specific opportunities.

而且——但我們的重點和優先事項是按順序排列的，凱倫提到了它們。我們希望發展現有業務，並希望透過收購來發展平台。我們對所有這些方面的機會感到滿意。在收購方面，我們的首要任務是繼續擴大我們的情報空間集團的規模。我們認為那裡有非常有趣的、在某些情況下也是有意義的擴張機會。這就是我們花費最多時間的地方。但我們也對照明方面的其他特定機會持開放態度。

Our next question comes from the line of Chris Snyder with UBS.

我們的下一個問題來自瑞銀集團的克里斯·史奈德。

I wanted to ask about the ABL guide for 2024. And specifically, what we should expect in first half versus second half. So down low to mid-single for the year. I think Neil talked about pressure in the market through the end of this calendar year. So I would assume that the declines are steeper in the first half and then moderate in the back half.

我想詢問 2024 年 ABL 指南。具體來說，我們對上半年和下半年應該有何期待。所以今年的單曲降到中低檔了。我認為尼爾談到了今年年底市場的壓力。因此，我認為上半年下降幅度更大，後半段下降幅度較小。

Is there any color about how we should be thinking about the slope of ABL in '24 as we're kind of working towards to that low to mid-single-digit decline?

當我們正在努力實現低至中個位數的下降時，我們應該如何看待 24 年 ABL 的斜率，有什麼顏色嗎？

Yes. So Chris, thanks for the question. I would guide you back to kind of historical sequential trends where obviously, on a sequential basis, we drop off from fourth quarter to first quarter and from first quarter to second quarter. And last year, in those same periods, we were still at inflated levels of backlog as we were burning through backlog. So then we get you to a more normal -- in our assumptions, gets you to a more normal cadence in the back half of the year.

是的。克里斯，謝謝你的提問。我將引導您回到歷史連續趨勢，顯然，按順序計算，我們從第四季度到第一季以及從第一季到第二季下降。去年，在同一時期，我們的積壓水平仍然很高，因為我們正在燃燒積壓。因此，我們會讓你在下半年採取更正常的節奏——根據我們的假設，讓你在下半年採取更正常的節奏。

I appreciate that. So it sounds like maybe high single-digit type declines in the first half, if I run that seasonality. And certainly, we see how the comps in the back half get easier. And is the uplift in growth really just kind of a function of the comps getting a lot easier into the back half? Or is there also an assumption that the macro will become more supportive into the back half?

我很感激。因此，如果我按照季節性計算，聽起來上半年可能會出現高個位數的下降。當然，我們看到後半區的比賽變得更加容易。成長的提升真的只是後半段比賽變得更容易的結果嗎？或者是否也假設宏觀經濟將在下半年變得更有利？

So our assumptions aren't relying on significant improvement on the -- from a macro environment. As I mentioned, we have returned to a more normal relationship between order intake and shipment rates. So we are -- and as I mentioned, we're comfortable executing in this environment.

因此，我們的假設並不依賴宏觀環境的顯著改善。正如我所提到的，我們已經恢復了訂單量和出貨率之間更正常的關係。正如我所提到的，我們很樂意在這種環境中執行任務。

So I think what we are ultimately suggesting for fiscal 2024 is that the back half of the year, we end up kind of clearing all of the legacy impacts of the increased backlogs and all of the other supply chain things. And so we end up with a more normal year. I think if you were -- if the economy matched up with our fiscal year, which it has no interest in what our fiscal year is, then you would say -- you would notice the third and fourth quarters of fiscal 2023 and the first and second quarters of fiscal 2024 on a calendar basis. But that gets us to where we are, which is kind of where you suggest, which is we'll be down in ABL in the first half of the year, and it will normalize a little bit in the back.

因此，我認為我們對 2024 財年的最終建議是，在今年下半年，我們最終將消除積壓增加和所有其他供應鏈問題的所有遺留影響。因此，我們迎來了更正常的一年。我認為如果你——如果經濟與我們的財政年度相匹配，而它對我們的財政年度是什麼不感興趣，那麼你會說——你會注意到2023 財年的第三和第四季度以及第一和第四季以日曆計算 2024 財年第二季。但這讓我們到達了現在的位置，這就是你所建議的，即我們將在今年上半年的 ABL 中下降，並且在後面會稍微正常化。

Our next question comes from the line of Brian Lee with Goldman Sachs.

我們的下一個問題來自高盛的布萊恩李 (Brian Lee)。

This is Grace on for Brian. I guess my first question, just to follow up on the last question. Sounds like you're expecting improvement. You called out the assumption of clearing all the legacy impact of the increased backlog. Just curious like what gives you the confidence to see that improvement? Are you seeing like sell-through improvement from quarter-over-quarter?

這是布萊恩的葛蕾絲。我想我的第一個問題，只是為了跟進最後一個問題。聽起來你正在期待改進。您提出了消除積壓增加的所有遺留影響的假設。只是好奇是什麼讓您有信心看到這種改進？您是否看到銷售量較上季有所改善？

Yes, Grace, as I pointed out, we've returned in the lighting business to a more normal relationship between order intake and shipment rates within the quarter. So we are at normal lead times. So our lead times are in the 20- to 30-day range in our lighting business, which translates to a performance where orders and shipments are consistent.

是的，格蕾絲，正如我所指出的，我們在照明業務中已經在本季度內恢復了訂單量和發貨率之間更正常的關係。所以我們的交貨時間是正常的。因此，我們照明業務的交貨時間在 20 至 30 天範圍內，這意味著訂單和發貨量保持一致。

As I explained in response to Chris' question, the -- we were at this point in the last year for our fiscal first and second quarters in Lighting, we were burning through additional backlog. So we obviously are not burning through additional backlog anymore. So we have returned to a more normal correlation between order intake and shipment rate.

正如我在回答克里斯的問題時所解釋的那樣，去年我們在照明領域的第一和第二財季的這個時候，我們正在消耗額外的積壓。因此，我們顯然不再需要處理額外的積壓訂單。因此，我們已經恢復了訂單量和出貨率之間更正常的相關性。

(Operator Instructions) Our next question comes from Jeff Osborne with TD Cowen.

（操作員說明）我們的下一個問題來自 Jeff Osborne 和 TD Cowen。

Just, Neil, you mentioned several times, expanding geographically and control planes on the ISG side. Do you have any organic efforts there? You alluded to potentially meaningful M&A activity there. I was just curious how to balance those 2 comments.

只是，尼爾，你多次提到，擴大地域並控制ISG方面的飛機。你在那裡有任何有機的努力嗎？您提到了那裡潛在有意義的併購活動。我只是好奇如何平衡這兩則評論。

So that is basically all organic. So Distech continues to grow. We've called out the U.K. where we've had some success in that market, and we'll continue to expand in Asia over the course in Australia over the course of this year and beyond. So that is primarily organic growth.

所以基本上都是有機的。因此 Distech 不斷發展。我們已經在英國市場取得了一些成功，今年及以後我們將繼續在澳洲和亞洲擴張。所以這主要是有機成長。

The acquisition that added to that would be KE2 Therm, which added refrigeration controls. So those are added. So we're confident in the organic cash, I mean, the organic growth at ISG any acquisitions we make would then be in addition to that, and we see some interesting opportunities there as well.

除此之外，還收購了 KE2 Therm，它增加了冷凍控制功能。所以添加了這些。因此，我們對有機現金充滿信心，我的意思是，我們進行的任何收購都會增加 ISG 的有機成長，而且我們也在那裡看到了一些有趣的機會。

Perfect. And then either for you, Neil or Karen, what are the assumptions around price and volume mix as it relates to the revenue guidance for the year?

完美的。然後，對於尼爾或凱倫來說，與今年收入指引相關的價格和銷售組合的假設是什麼？

Yes. I'll take that one, Jeff. So as Karen has explained through the course of this year, volume was -- we had a healthy mix in fiscal 2023 first half of both volume and price. That was, again, as we were burning through the backlog. Through the back half of this year, we have delivered performance largely through price as volumes have moderated.

是的。我要那個，傑夫。正如凱倫在今年期間所解釋的那樣，我們在 2023 財年上半年的銷售和價格都實現了健康的組合。這又是在我們正在處理積壓的工作時。今年下半年，隨著銷售量的放緩，我們主要透過價格來實現業績。

So on a sequential basis, we feel pretty decent on the relationship between volume and price. So we think we're in a healthy balance of both of those for -- in our lighting guidance for 2024. They are -- the volume is impacting and we're comfortable with where we are in price.

因此，從順序來看，我們對成交量和價格之間的關係感覺相當不錯。因此，我們認為，在我們的 2024 年照明指南中，我們在這兩者之間保持了健康的平衡。它們的銷售正在產生影響，而且我們對目前的價格感到滿意。

Our next question comes from the line of Jeffrey Sprague with Vertical Research Partners.

我們的下一個問題來自 Jeffrey Sprague 和 Vertical Research Partners 的電話。

Can we just follow up a little bit back to what you just said on price. So if I understand, you're saying most of the revenue decline that we see in the quarter is price. Is that what you meant? Could you just kind of clarify?

我們可以稍微跟進一下您剛才所說的價格嗎？所以，如果我理解的話，你是說我們在本季看到的收入下降大部分是價格造成的。這是你的意思嗎？你能澄清一下嗎？

Yes. Sorry, if I left with that impression, that was not what I intended to say. So I was talking about fiscal '24 in response to other Jeff's question, which was -- and so how we how we got to our net sales assumptions for the lighting business next year.

是的。抱歉，如果我留下這樣的印象，那不是我想說的。因此，我在回答其他傑夫的問題時談到了 24 財年，即我們如何得出明年照明業務的淨銷售額假設。

Got it. And then if I recall, you haven't actually made a major pricing move for the better part of the year. Is that correct? And do you have additional pricing actions in the market at this point in time?

知道了。然後，如果我沒記錯的話，今年大部分時間你實際上並沒有做出重大的定價變動。那是對的嗎？目前市場上是否有其他定價行動？

So as we've mentioned consistently, Jeff, we have -- our strategy, the underlying strategy of product vitality, service, technology and productivity has afforded us the opportunity to more strategically manage price.

正如我們一直提到的，傑夫，我們的策略，產品活力、服務、技術和生產力的基本策略為我們提供了更具策略性地管理價格的機會。

So while there were a number of broad pricing actions through kind of '22 and '23, we've become significantly more targeted in those actions now. So for example, we're in the market now. We just recently announced a price increase around certain controls products this quarter.

因此，雖然在「22」和「23」期間採取了許多廣泛的定價行動，但我們現在這些行動的針對性明顯增強。例如，我們現在在市場上。我們最近剛宣布本季某些控制產品的價格上漲。

The -- we're also strategic about where we choose to invest in price. That's generally in the Contractor Select portfolio, and it's generally to expand our market share in the electrical distribution channel. And it's highly targeted. So it's very low dollars comparative investment on a percentage basis. So the strategy has empowered us to more strategically manage price. And so we are no longer really going after broad-based pricing changes like that up and down, but more strategically managing on different categories and for different reasons.

我們對於選擇在價格上進行投資的位置也具有戰略意義。這通常屬於承包商精選產品組合，通常是為了擴大我們在電氣分銷管道中的市場份額。而且針對性很強。因此，以百分比計算，這是非常低的美元比較投資。因此，該策略使我們能夠更有策略地管理價格。因此，我們不再真正追求諸如上下之類的廣泛定價變化，而是針對不同類別並出於不同原因進行更具策略性的管理。

And then maybe just one last one. So the cash flow was solid in '23. By my math, the inventory days are actually now a fair amount below normal. Can you do more on inventory or working capital at this point? Maybe just a little some thoughts on cash outlook for 2024.

然後也許只是最後一件事。所以23年的現金流是穩定的。根據我的計算，庫存天數現在實際上比正常情況低很多。此時您可以在庫存或營運資金方面採取更多措施嗎？也許只是對 2024 年現金前景的一些想法。

Yes, I think as we look ahead, Jeff, I agree, we had a really good performance this year with our cash flow generation, and we were able to improve our days. I think there's still some opportunity as we look ahead, probably not to the magnitude of what you see in -- or what we saw in 2023.

是的，我認為，當我們展望未來時，傑夫，我同意，今年我們在現金流生成方面取得了非常好的業績，並且我們能夠改善我們的生活。我認為，展望未來，我們仍然存在一些機會，但可能不會達到您所看到的程度，或我們在 2023 年看到的程度。

So for example, if you think about where we were in '22, we had high levels of inventory because of lead times from our suppliers. We were able to bring that down to a little bit better than our normal levels of inventory. But I think as we continue to drive the strategy, particularly at ABL, around product vitality, service, technology and productivity, there is still room for some improvement as we kind of drive that strategy throughout the business.

舉例來說，如果你想想我們在 22 年的情況，你會發現，由於供應商的交貨時間，我們的庫存水準很高。我們能夠將其降低到比正常庫存水準稍好的水準。但我認為，隨著我們繼續推動這項策略，特別是在 ABL，圍繞著產品活力、服務、技術和生產力，仍然有一些改進的空間，因為我們在整個業務中推動這項策略。

And Jeff, I'd love to take this opportunity to summarize kind of where I think we are from a performance perspective. Obviously, it's hard to increase margins when sales are declining. We've demonstrated that we can do that. It's also hard to make the kind of improvements that we've demonstrated and you highlighted from a working capital perspective, we've structurally improved the business.

傑夫，我很想藉此機會從績效角度總結我認為我們所處的位置。顯然，當銷售額下降時，很難提高利潤。我們已經證明我們可以做到這一點。也很難做出我們已經展示的那種改進，並且您從營運資本的角度強調，我們已經在結構上改進了業務。

The strategy, as Karen outlined, has changed, both where we -- how we operate and how successfully we can operate. So that makes us very comfortable with our continuing performance around margin and cash generation.

正如凱倫所概述的那樣，我們的策略已經發生了變化，無論是我們的營運方式還是我們的營運成功程度。因此，這讓我們對我們在利潤率和現金產生方面的持續表現感到非常滿意。

Our next question comes from the line of Joe O'Dea with Wells Fargo.

我們的下一個問題來自 Joe O'Dea 與富國銀行的對話。

I just want to circle back to the kind of sequential commentary. So it seems like if we run sort of normal seasonality out of the fourth quarter kind of revenue rate, we get roughly to the midpoint. I guess that also would seem to imply that you're going from an environment where you were dealing with channel inventory rationalization that ends. And so arguably, there should be an uplift and maybe the incremental pressures that the macro is a little bit more challenging.

我只想回到那種連續的評論。因此，如果我們按照第四季的營收率計算正常的季節性，我們就會大致達到中點。我想這似乎也意味著您正在從一個結束的通路庫存合理化環境中走出來。因此可以說，宏觀經濟應該會有所提升，或許還會增加一些更具挑戰性的壓力。

And so just wanted to sort of touch on that dynamic again a little bit more. And then within that, I think a tremendous amount of focus on sort of verticals within non-res and so any additional commentary sort of on thoughts that you have around kind of verticals that would be stronger where you're maybe paying a little bit closer attention to any potential softness.

所以我只是想再多談談這種動態。然後，在這之中，我認為大量關注非分辨率中的垂直領域，因此任何關於您對垂直領域的想法的任何額外評論都會在您可能支付更接近的地方會更強注意任何潛在的柔軟度。

Yes, Joe, thanks for the follow-up. So again, we would like to provide you as much of a read through the macro as we can, but we can only kind of comment really on our performance. And so as it relates to that, as just to kind of reiterate, in the first half of fiscal 2023, we were burning through backlog. We have now returned to a more normal order and relationship between order and shipment rates, where our order rate is -- it drives basically the shipments within the quarter, and we're at kind of a 20- to 30-day lead times, so average lead time in the lighting business.

是的，喬，感謝您的跟進。再次強調，我們希望為您提供盡可能多的宏觀解讀，但我們只能對我們的表現做出真正的評論。與此相關的是，就像重申一下，在 2023 財年上半年，我們正在處理積壓的訂單。我們現在已經恢復到更正常的訂單以及訂單與發貨率之間的關係，我們的訂單率基本上推動了本季度的發貨，並且我們的交貨時間為 20 到 30 天，照明行業的平均交貨時間。

So things are relatively back to normal. So on a sequential basis, that's how you see the more traditional sequential seasonality play out. So as we look forward, I'd like to say we know more about the macro environment than others. The advantage, but we -- I don't think we do. The advantage we have is that our portfolio on the lighting side really addresses the -- wherever there can be growth in the marketplace.

所以事情相對恢復正常了。因此，在連續的基礎上，這就是您看到的更傳統的連續季節性的表現方式。因此，當我們展望未來時，我想說我們比其他人更了解宏觀環境。這是優勢，但我們——我認為我們沒有。我們的優勢在於，我們在照明方面的產品組合真正解決了市場成長的任何問題。

So the product vitality efforts that we have undertaken, the service levels we have undertaken allows us to be strong in retail, strong in electrical distribution, strong in each of the categories, well positioned for infrastructure. So we are in the places where we can benefit from any changes in the lighting market.

因此，我們在產品活力方面所做的努力、我們所採取的服務水準使我們能夠在零售領域、配電領域、每個類別領域、以及基礎設施領域佔據優勢。因此，我們可以從照明市場的任何變化中受益。

In the meantime, we're comfortable operating at these kind of levels of market activity and continuing to deliver the margins and the cash flow that Karen effectively highlighted through the guidance.

同時，我們對在這種市場活動水平上的運作感到滿意，並繼續提供凱倫在指導中有效強調的利潤和現金流。

Our next question comes from the line of Chris Snyder with UBS.

我們的下一個問題來自瑞銀集團的克里斯·史奈德。

I just wanted to ask on gross margin. I don't believe this has come up. Can you just talk about what level of gross margin is implied in the guide next year as we're going from $3.7 billion to $4 billion of revenue to that $30 million, $40 million, $50 million of earnings?

我只是想問毛利率。我不相信這已經出現了。您能否談談明年指南中暗示的毛利率水準是多少，因為我們的收入將從 37 億美元增加到 40 億美元，再增加到 3,000 萬美元、4,000 萬美元、5,000 萬美元？

Yes, sure. Chris, I'll take that. The -- as Karen pointed out, the -- all we are guiding to is net sales and adjusted EPS. I'm confident in your math skill, so you'll quickly realize that, that implies that we are -- we don't need to be at the levels of margin we were in the fourth quarter to -- for the full year next year to deliver that range.

是的，當然。克里斯，我會接受的。正如凱倫所指出的，我們所指導的只是淨銷售額和調整後的每股盈餘。我對你的數學技能很有信心，所以你很快就會意識到，這意味著我們 - 我們不需要達到第四季度的利潤水平 - 明年全年年交付該範圍。

What it does say, though, is that, as I was responding to Jeff Sprague earlier, we have structurally improved this business, which allows us to operate at higher margins than the company has operated in the past. It's worth saying that the fourth quarter gross profit margins are the highest in the history of the company. So we don't have to maintain those levels to continue to deliver what we consider to be outstanding performance. And further, as I have pointed out repeatedly, the -- and our value creation model is about growing net sales, turning profits into cash and not growing the balance sheet as fast.

不過，它確實表明，正如我早些時候對傑夫·斯普拉格(Jeff Sprague)的回應，我們從結構上改進了這項業務，這使我們能夠以比公司過去更高的利潤率運營。值得一提的是，第四季的毛利率是該公司史上最高的。因此，我們不必維持這些水準即可繼續提供我們認為的出色績效。此外，正如我反覆指出的那樣，我們的價值創造模式是增加淨銷售額，將利潤轉化為現金，而不是快速成長資產負債表。

So we've made structural changes, which allow us to operate at these higher margin levels and to turn those margins into cash. So we feel really good about kind of the permanence of the changes that we've made in the Lighting business and the continued opportunity we have to improve that. At the same time, we can continue to grow the portfolio through ISG and then through adding additional businesses to the portfolio.

因此，我們進行了結構性變革，這使我們能夠以更高的利潤水平運作並將這些利潤轉化為現金。因此，我們對我們在照明業務中所做的改變的持久性以及我們必須持續改進的機會感到非常滿意。同時，我們可以透過 ISG 繼續擴大投資組合，然後在投資組合中添加其他業務。

I really appreciate that. And if I could follow up with 1 more, and it's probably the biggest question that I get, is when we look at this gross margin, I mean it's pretty incredible, up 340 basis points versus the start of the year. But at the same time, volumes have rolled. I understand that there's the backlog dynamic. I understand maybe the macro is a bit softer. But do you guys think that there is any negative volume impact from this big uplift in gross margin? And how does the company think about balancing that? It feels like there's a bit of maybe a sliding scale dynamic.

我真的很感激。如果我能再跟進一個問題，這可能是我遇到的最大問題，當我們看到毛利率時，我的意思是，它非常令人難以置信，比年初增長了 340 個基點。但同時，銷量卻在不斷增加。據我所知，存在積壓動態。我理解也許宏有點軟。但你們認為毛利率的大幅提升會對銷售產生負面影響嗎？公司如何考慮平衡這一點？感覺好像有一點可能是動態變化的。

Yes. No, I appreciate you asking the question and giving us the opportunity to address it. We talked a bit about this in the third quarter call. But I want to reflect on it some more, which is most importantly, our strategy in the lighting business around biotic vitality, service technology and productivity has put us in a position to manage price and to manage margins in a step function better way than we have in the past.

是的。不，我很感謝您提出這個問題並給我們機會解決這個問題。我們在第三季的電話會議中對此進行了一些討論。但我想再反思一下，最重要的是，我們在照明業務中圍繞生物活力、服務技術和生產力的策略使我們能夠以比我們更好的方式管理價格和管理利潤。已經過去了。

And so we feel really good about that. As we have evaluated volumes, and I was addressing this with Jeff's question, we strategically managed price where we choose to where we think we can drive volume. We realize that at these margin levels, we've created a significant amount of value. And so we have a lot of incentive to continue to operate at these margin levels. All of the data that we are looking at across verticals says that we are appropriately pricing for the volume that's available in the market. And that's our goal over time.

所以我們對此感覺非常好。正如我們評估了銷售量一樣，我正在用傑夫的問題來解決這個問題，我們策略性地管理價格，我們選擇我們認為可以推動銷售的價格。我們意識到，在這些利潤水平上，我們已經創造了巨大的價值。因此，我們有很大的動力繼續在這樣的利潤水準上運作。我們在各個垂直領域查看的所有數據都表明，我們正在根據市場上的可用數量進行適當的定價。這就是我們隨著時間的推移的目標。

So we will -- that's why we've continued to layer in margin and cash flow during this low volume period and why we believe we're well positioned for the inevitable return of volume growth at some point in the future.

因此，我們會——這就是為什麼我們在這個低銷量時期繼續增加利潤和現金流，也是為什麼我們相信我們已經做好準備，在未來某個時候不可避免地會出現銷量成長的回報。

And I'm showing no further questions in queue at this time. I'd like to turn the call back to Neil Ashe for any closing remarks.

目前我沒有在隊列中顯示任何其他問題。我想將電話轉回給尼爾·阿什，請他發表結束語。

First of all, thank you all for spending some time with us this morning. We're really proud of our financial performance, as we've talked about through the call. We had a great year. We delivered strong financial performance. We continue to structurally improve both the lighting business, and we continue to grow the Intelligence Spaces Group, and we can allocate capital effectively.

首先，感謝大家今天早上與我們一起度過的時光。正如我們在電話中談到的那樣，我們對我們的財務表現感到非常自豪。我們度過了美好的一年。我們取得了強勁的財務業績。我們繼續在結構上改善照明業務，我們繼續發展智慧空間集團，我們可以有效分配資本。

Our priorities for next year remain the same. We're going to continue to focus on operating excellence in the lighting business and making it more predictable, repeatable and scalable. We'll continue to grow the Spaces business, and we will be consistent with our capital allocation priorities. So we look forward to being back together with you at the end of the quarter, and hope you have a good rest of your day. Thank you for your interest in Acuity Brands.

我們明年的優先事項保持不變。我們將繼續專注於照明業務的卓越運營，並使其更具可預測性、可重複性和可擴展性。我們將繼續發展空間業務，並且我們將與我們的資本分配優先事項保持一致。因此，我們期待在本季末與您重聚，並希望您度過愉快的一天。感謝您對 Acuity Brands 的興趣。

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。您現在可以斷開連線。