Acuity Brands Inc (AYI) 2024 Q4 法說會逐字稿

Good morning and welcome to Acuity Brands' fiscal 2024 fourth quarter earnings call at this time. (Operator Instructions) 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.

早安，歡迎參加 Acuity Brands 2024 財年第四季財報電話會議。 （操作員指示）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, operator. Good morning and welcome to the Acuity Brands' fiscal 2024 fourth quarter and full year earnings call. On the call with me this morning are Neil Ashe, our Chairman, President, and Chief Executive Officer; and Karen Holcom, our Senior Vice President and Chief Financial Officer. Today's call will include updates on our strategic progress and on our fiscal 2024 fourth quarter and full year performance. There will be an opportunity for Q&A at the end of this call.

謝謝你，接線生。早安，歡迎參加 Acuity Brands 2024 財年第四季和全年財報電話會議。今天早上與我通話的是我們的董事長、總裁兼執行長尼爾‧阿什 (Neil Ashe)；以及我們的高級副總裁兼財務長 Karen Holcom。今天的電話會議將包括我們的策略進展以及 2024 財年第四季和全年業績的最新資訊。本次電話會議結束時將有一個問答機會。

As a reminder, some of our comments today may be forward looking statements. We intend these forward looking statements to be covered by the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

提醒一下，我們今天的一些評論可能是前瞻性陳述。我們希望這些前瞻性聲明包含在 1995 年《私人證券訴訟改革法案》的安全港條款中。

As detailed on slide 2 of the accompanying presentation, reconciliations of certain non GAAP financial metrics with their corresponding GAAP measures are available in our 2024 fourth quarter earnings release and supplemental presentation, both of which are available on our investor relations website at www.investors.acuitybrands.com. Thank you for your interest in Acuity Brands. I will now turn the call over to Neil Ashe.

正如隨附簡報第2 張幻燈片中所詳述，我們的2024 年第四季度收益發布和補充演示文稿中提供了某些非GAAP 財務指標與其相應GAAP 衡量標準的對賬，這兩者均可在我們的投資者關係網站www.investors 上取得。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 thank you all for joining us this morning. Our fiscal 2024 fourth quarter performance was strong. We grew net sales in both lighting and spaces, delivered margin expansion, and increased earnings per share.

謝謝夏洛特，也謝謝大家今天早上加入我們。我們 2024 財年第四季的業績表現強勁。我們在照明和空間領域實現了淨銷售額的成長，實現了利潤率的擴大，並提高了每股盈餘。

Fiscal 2024 was a successful year of improved operating performance that delivered end user satisfaction and improved financial results. In ABL we grew net sales $11 million, increased our adjusted operating profit by $13 million, and expanded our adjusted operating profit margin to 18%.

2024 財年是營運績效改善的成功一年，提高了最終用戶滿意度並改善了財務表現。在 ABL，我們的淨銷售額成長了 1,100 萬美元，調整後營業利潤增加了 1,300 萬美元，並將調整後營業利潤率擴大到 18%。

These results are being driven by our strategy to increase product vitality, elevate service levels, use technology to improve and differentiate both our products and how we operate the business, and to drive productivity.

這些成果是由我們提高產品活力、提升服務水準、利用技術改進和差異化我們的產品和業務運作方式以及提高生產力的策略所推動的。

In August we announced that we combined our lighting and supply chain organizations under one leader to better align the end-to-end connectivity of our ABL processes. I appointed Sach Sankpal to lead the combined organization. Sach joined us about three years ago in a growth and transformation role. He is a dynamic leader who has the ability to bring the business together in order to accelerate growth and to drive productivity.

8 月，我們宣布將照明和供應鏈組織合併到一位領導者的領導下，以便更好地協調 ABL 流程的端到端連接。我任命薩赫桑克帕爾 (Sach Sankpal) 領導合併後的組織。薩赫大約三年前加入我們，擔任成長和轉型職位。他是一位充滿活力的領導者，有能力將業務整合在一起以加速成長並提高生產力。

This quarter, we continue to further our ongoing product vitality. One of our recent product launches was Holobay by Holophane, a capable and configurable round high bay for use in industrial environments, manufacturing environments and warehouse spaces.

本季度，我們繼續增強我們持續的產品活力。我們最近推出的產品之一是 Holophane 的 Holobay，這是一款功能強大且可配置的圓形高棚，適用於工業環境、製造環境和倉庫空間。

Holobay reinforces Holophane's leadership position in the industrial space by leveraging both existing and new technology to deliver game changing performance. Its innovative thermal management can withstand the most demanding environments. It has the broadest lumen output options on the market, it's 5 pounds to 10 pounds lighter than alternatives, has multiple mounting options, and it's configurable with our nLight controls. This is the biggest technology improvement in over a decade in industrial highways.

Holobay 透過利用現有技術和新技術提供改變遊戲規則的效能，鞏固了 Holophane 在工業領域的領導地位。其創新的熱管理可以承受最嚴苛的環境。它具有市場上最廣泛的流明輸出選項，比替代品輕 5 磅到 10 磅，具有多種安裝選項，並且可透過我們的 nLight 控制進行配置。這是工業高速公路十多年來最大的技術進步。

Our team has continued to be recognized for innovation and for the value that our products bring to our customers. In the fourth quarter many of our lighting solutions were selected for the 2024 Illuminating Engineering Society Progress Report, which showcases the year's most significant advancements in the art and science of lighting, including Lino by A-Light, the Gotham IVO shallow recess down light, and the Lithonia FRAME, all of which have been highlighted on earnings calls this year.

我們的團隊因創新和我們的產品為客戶帶來的價值而不斷獲得認可。在第四季度，我們的許多照明解決方案被選入2024 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A-Light 的Lino、Gotham IVO 淺凹筒燈、和 Lithonia FRAME，所有這些都在今年的財報電話會議上得到了強調。

We additionally won for our cyclone crosswalk, a street light that was designed to maximize pedestrian safety through innovative contrast and vertical illumination. And for the Hydrel Tierra, a compact in-grade fixture that is used in outdoor architectural and landscape lighting, its innovative sealing capabilities allow for maximum structural integrity that ensures long-term use with minimal maintenance.

我們也憑藉旋風人行道獲獎，這是一種路燈，旨在透過創新的對比度和垂直照明最大限度地提高行人安全。對於 Hydrel Tierra（一種用於戶外建築和景觀照明的緊湊型室內燈具）而言，其創新的密封功能可實現最大的結構完整性，確保長期使用且維護量最少。

Now, I'd like to take a step back and recap our achievements this year in the lighting business. Overall, our financial performance was strong and we made progress on our strategy and on our initiatives. We evolved our differentiated product portfolios made to order, design select, and contractor select, to create the most effective way for end users and contractors to get what they need when they need it for their specific projects.

現在，我想退後一步，回顧一下我們今年在照明業務方面的成就。整體而言，我們的財務表現強勁，我們的策略和舉措取得了進展。我們改進了按訂單、設計選擇和承包商選擇客製化的差異化產品組合，為最終用戶和承包商在其特定項目需要時提供最有效的方式來獲得他們所需的產品。

And we invested for future growth, prioritizing new verticals where we have not historically competed or where we are underpenetrated. Notably in the refueling market where we developed a new line of tailored product solutions and in the horticulture vertical where we built a product portfolio to service the horticulture environment through organic and inorganic product development.

我們為未來的成長進行投資，優先考慮我們歷史上沒有競爭過或滲透率不足的新垂直領域。尤其是在加油市場，我們開發了一系列新的客製化產品解決方案；在園藝垂直領域，我們建立了產品組合，透過有機和無機產品開發為園藝環境提供服務。

Now, moving on to our Intelligence Spaces Group, which delivered impressive growth and margin performance. Our mission in our Intelligence Spaces business is to make spaces smarter, safer, and greener through a strategy of connecting the edge to the cloud. In spaces, we are focused on increasing our addressable market by expanding where we compete and what we can control.

現在，轉向我們的智慧空間集團，該集團實現了令人印象深刻的成長和利潤率表現。我們智慧空間業務的使命是透過將邊緣連接到雲端的策略使空間更智慧、更安全、更環保。在太空領域，我們致力於透過擴大我們的競爭範圍和我們可以控制的範圍來擴大我們的潛在市場。

France was Distech's original market outside of North America. We have an impressive market position as a result of having the most adaptable and capable technology on the market. And not surprisingly, our products were used in many of the facilities in Paris this summer.

法國是 Distech 在北美以外的最初市場。由於擁有市場上適應性最強、能力最強的技術，我們擁有令人印象深刻的市場地位。毫不奇怪，今年夏天我們的產品在巴黎的許多設施中使用。

In the Aquatic Center, our eclipsed solutions regulated water and energy consumption. Our eclipse controllers played a key role in managing temperature, air quality, and acoustics at the Arena Porte de la Chapelle, which hosted events like gymnastics and badminton.

在水上運動中心，我們的解決方案黯然失色，可以調節水和能源的消耗。我們的 eclipse 控制器在管理體操和羽毛球等活動的拉夏貝爾競技場的溫度、空氣品質和聲學效果方面發揮了關鍵作用。

In the Grand Palais, our controllers enabled nighttime window automation to manage temperature and save energy. And in Maxwell Hall, we demonstrated the modularity of our eclipse solutions. It served the needs of the athletes when the facility was being used as part of the athletes' village. And now it is easily adapted to the requirements of the incoming occupants as the space transforms into offices.

在大皇宮，我們的控制器啟用了夜間窗戶自動化來管理溫度並節省能源。在麥克斯韋大廳，我們展示了日食解決方案的模組化。當該設施被用作運動員村的一部分時，它滿足了運動員的需求。現在，隨著空間轉變為辦公室，它可以輕鬆適應新入住者的要求。

Our Intelligent Spaces business had a very good year. We expanded our addressable market, continued our impressive growth, and increased margins. And now let's look forward. In our lighting, lighting controls business we've demonstrated performance that is clearly differentiated from the rest of the market and we're not done.

我們的智慧空間業務度過了非常好的一年。我們擴大了潛在市場，繼續實現令人印象深刻的成長，並提高了利潤率。現在讓我們期待一下。在我們的照明、照明控制業務中，我們已經展示了與市場其他產品明顯不同的性能，但我們還沒有完成。

We are confident in our ability to grow this business and have a clear growth algorithm to do so. First, as the largest company in the North American lighting industry, we will grow with the market. Second, we will continue to take share.

我們對發展這項業務的能力充滿信心，並擁有清晰的成長演算法來實現這一目標。首先，作為北美照明產業最大的公司，我們將與市場一起成長。二是繼續搶佔份額。

And third, we will invest for growth by entering new verticals where we have either not historically competed or where we are underpenetrated. Taken together over a long period of time, we believe that our lighting business will grow mid-single digits.

第三，我們將透過進入我們歷史上沒有競爭過或滲透率不足的新垂直領域來投資成長。長期來看，我們相信我們的照明業務將實現中個位數成長。

We have also demonstrated that we can improve margins. In fiscal 2020, our adjusted operating profit margin was 15%. And now in fiscal 2024, it has increased to 18%. We are confident that we can continue this trend and believe that we can add around 50 basis points to 100 basis points of adjusted operating profit margin per year in the lighting business. We have made ABL more predictable, repeatable, and scalable.

我們也證明了我們可以提高利潤率。 2020 財年，我們調整後的營業利益率為 15%。而現在到了 2024 財年，這一比例已增至 18%。我們有信心能夠延續這一趨勢，並相信照明業務每年調整後的營業利潤率可以增加約50個基點至100個基點。我們使 ABL 更加可預測、可重複和可擴展。

It is a high quality strategic asset and a core pillar of our company. In our Intelligent Spaces business, we are delivering meaningful outcomes for end users that are powered by disruptive technologies and that generate strong financial results. We are expanding our addressable market, we are growing sales, and we are increasing margins.

它是我們公司的優質策略資產和核心支柱。在我們的智慧空間業務中，我們正在為最終用戶提供有意義的成果，這些成果由顛覆性技術提供支持，並產生強勁的財務表現。我們正在擴大我們的目標市場，我們正在增加銷售額，我們正在增加利潤。

Our open edge to cloud solutions currently operate buildings to maximize occupant experience and minimize energy and operational costs and we believe we can do more in the future. We see a future where the data generated from managing a built space, from what happens in a built space, and from who is in a built space comes together in new and unique ways.

我們的開放式雲端解決方案目前正在營運建築物，以最大限度地提高居住者體驗並最大限度地減少能源和營運成本，我們相信我們將來可以做得更多。我們看到，在未來，管理建築空間、建築空間中發生的事情以及建築空間中的人員所產生的數據將以新的、獨特的方式匯集在一起。

Both our organic and inorganic efforts will be focused on continuing to add more disruptive technologies that bring together a new vision of data interoperability to drive end user outcomes. We have a strong pipeline of internal development and small and medium sized acquisitions to satisfy this vision. In conclusion, we are delivering better outcomes for our stakeholders and compounding wealth for our shareholders.

我們的有機和無機努力都將集中於繼續添加更多顛覆性技術，這些技術匯集了數據互通性的新願景，以推動最終用戶的成果。我們擁有強大的內部開發和中小型收購管道來滿足這一願景。總之，我們正在為利害關係人提供更好的成果，並為股東增加財富。

We are continuing to drive improvements in order to make Acuity a much larger and more impactful company in fiscal 2025 and beyond. Now, I'll turn the call over to Karen who will update you on our fourth quarter performance and provide the outlook for fiscal 2025.

我們將繼續推動改進，以便在 2025 財年及以後將 Acuity 打造成一家規模更大、影響力更大的公司。現在，我將把電話轉給凱倫，她將向您介紹我們第四季度業績的最新情況並提供 2025 財年的展望。

Thank you, Neil, and good morning to everyone on the call. We delivered strong performance in our fourth quarter, Sales in our lighting business grew. We continued to deliver mid-teen sales growth in our spaces business and both businesses delivered impressive margin improvements. We increased our adjusted diluted earnings per share and generated significant full year operating cash flow.

謝謝你，尼爾，祝所有參加電話會議的人早安。我們在第四季度取得了強勁的業績，照明業務的銷售額有所成長。我們的空間業務持續實現中位數的銷售成長，而這兩項業務的利潤率都取得了令人矚目的成長。我們增加了調整後的稀釋每股收益，並產生了大量的全年營運現金流。

For total AYI, we generated net sales in the fourth quarter of $1 billion which was $22 million or 2% above the prior year as a result of growth in both the lighting and spaces businesses. We continued to deliver year-over-year margin improvement.

就 AYI 總額而言，由於照明和空間業務的成長，我們第四季度的淨銷售額為 10 億美元，比去年同期增加 2,200 萬美元，即 2%。我們持續實現利潤率年增。

During the quarter, our adjusted operating profit was up $16 million from last year and we expanded our adjusted operating profit margin to 17.3% an increase of 120 basis points from the prior year. This increase was largely a result of the significant year-over-year improvement in our gross profit margin driven by product vitality, the management of price and cost, and productivity improvements.

本季度，我們調整後的營業利潤比去年增加了 1,600 萬美元，調整後的營業利潤率擴大到 17.3%，比去年增加了 120 個基點。這一成長主要是由於產品活力、價格和成本管理以及生產力提高所推動的毛利率比去年同期顯著提高。

This quarter, we again generated net interest income as a result of the strong cash position on our balance sheet and our adjusted diluted earnings per share of $4.30 increased $0.33 or 8% over the prior year.

本季度，由於資產負債表上的現金狀況強勁，我們再次產生了淨利息收入，調整後的稀釋每股收益為 4.30 美元，比前一年增加了 0.33 美元，即 8%。

In ABL, net sales were $955 million, an increase of $11 million or around 1%. This increase was driven by improvements in the majority of our channels, but was primarily the result of higher net sales in our corporate accounts channel.

ABL 的淨銷售額為 9.55 億美元，增加了 1,100 萬美元，增幅約 1%。這一成長是由我們大多數通路的改進所推動的，但主要是我們公司客戶通路淨銷售額增加的結果。

Adjusted operating profit increased to $172 million and we delivered adjusted operating profit margin of 18%, a 120 basis point improvement over the prior year. Net sales in Intelligent Spaces for the fourth quarter were $84 million, an increase of 17% as Distech delivered impressive growth driven in part by large data center projects. Adjusted operating profit in Intelligent Spaces was $22 million with the adjusted operating profit margin over 25%.

調整後營業利潤增至 1.72 億美元，調整後營業利益率為 18%，較上年提高 120 個基點。第四季智慧空間的淨銷售額為 8,400 萬美元，成長 17%，部分得益於大型資料中心專案的推動，Distech 實現了令人印象深刻的成長。智慧空間調整後營業利潤為 2,200 萬美元，調整後營業利益率超過 25%。

Now turning to our cash flow performance. In fiscal 2024, we generated $619 million of cash flow from operating activities, a $41 million increase over fiscal 2023. We continue to earn attractive returns on the cash that we have on our balance sheet and ended the year with $846 million of cash.

現在轉向我們的現金流表現。 2024 財年，我們的經營活動產生了6.19 億美元的現金流，比2023 財年增加了4,100 萬美元。 。

We allocated capital consistent with our priorities, invested $64 million in capital expenditures, and acquired the assets of Arize Horticulture Lighting. We increased our dividend per share 15% and allocated approximately $89 million to repurchase over 454,000 shares at an average price of $194 per share.

我們根據優先事項分配資本，投資了 6,400 萬美元的資本支出，並收購了 Arize Horticulture Lighting 的資產。我們將每股股息提高了 15%，並撥款約 8,900 萬美元以每股 194 美元的平均價格回購了超過 454,000 股股票。

Since the beginning of the fourth quarter of fiscal 2020, we have repurchased approximately 9.5 million shares at an average price of about $145 per share, which was funded by organic cash flow. This amounts to about 24% of the then outstanding shares.

自2020財年第四季初以來，我們以每股約145美元的平均價格回購了約950萬股股票，資金來源為有機現金流。這相當於當時流通股的 24% 左右。

I now want to spend a few minutes on our outlook for 2025. Consistent with our prior practice, we are going to provide annual guidance anchored around net sales and adjusted diluted earnings per share. 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.

我現在想花幾分鐘談談我們對 2025 年的展望。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 2025, our expectation is that net sales will be within the range of $3.9 billion and $4.1 billion for total AYI. This is based on the assumptions that ABL will deliver low to mid-single digit sales growth, which we anticipate will be more back half weighted in fiscal 2025. And ISG will generate sales growth in the low to mid-teens as we continue to increase our addressable market by expanding where we compete and what we can control. We expect to deliver adjusted diluted earnings per share within the range of $16 to $17.50.

對於 2025 財年全年，我們預計 AYI 總淨銷售額將在 39 億至 41 億美元之間。這是基於這樣的假設：ABL 將實現低至中個位數的銷售成長，我們預計到2025 財年將更多地採用後半加權。銷售成長透過擴大我們的競爭範圍和我們可以控制的範圍來擴大我們的潛在市場。我們預計調整後的稀釋每股收益將在 16 美元至 17.50 美元之間。

To conclude, we delivered impressive performance in fiscal 2024. We improved margins increased earnings per share and generated strong cash flow from operations. We've allocated capital, effectively investing for future growth in our existing businesses and we finished the year with a very strong balance sheet. We are positioned well to continue to deliver sales and earnings growth in fiscal 2025. Thank you for joining us today. I will now pass you over to the operator to take your questions.

總而言之，我們在 2024 財年取得了令人印象深刻的業績。我們已經分配了資本，有效地投資於現有業務的未來成長，並且我們以非常強勁的資產負債表結束了這一年。我們已做好充分準備，可以在 2025 財年繼續實現銷售和獲利成長。現在我將把您轉交給接線員回答您的問題。

(Operator Instructions) Tim Wojs, Baird.

（操作員說明）Tim Wojs，Baird。

Hey guys, good morning, thanks for the time. Maybe if I could just start with one question, Neil, just you know, as you kind of look at the current market conditions, obviously, there's a lot of choppy data points out there. I'm just kind of curious if you can give us an update. Just kind of what you're seeing around quoting, ordering, and release activity in the ABL business.

嘿夥計們，早上好，謝謝您的寶貴時間。也許我可以從一個問題開始，尼爾，你知道，當你看看當前的市場狀況時，顯然，有很多不穩定的數據點。我只是好奇你能否給我們最新消息。這就是您在 ABL 業務中的報價、訂購和發布活動中所看到的情況。

Yeah, thanks Tim. So first of all, we feel good about where we're going for fiscal '25. So we're building off of strength. The ABL business returned to growth in the fourth quarter. Our operating performance was very strong.

是的，謝謝蒂姆。首先，我們對 25 財年的發展方向感到滿意。所以我們正在增強實力。 ABL業務在第四季恢復成長。我們的經營業績非常強勁。

As we look forward, we're reasonably confident about fiscal year '25. I think, our view is consistent with most of the data that we've seen, which is that calendar year '25 is expected to be pretty strong. So the conditions now are I would say relatively normal, neither extraordinarily good, nor bad on the ABL side. So we're focused there on the growth algorithm, and we feel good about kind of the full ;25 albeit more as Karen said back and loaded.

展望未來，我們對 25 財年充滿信心。我認為，我們的觀點與我們所看到的大多數數據一致，即 25 日曆年預計將相當強勁。所以現在的情況我覺得還是比較正常的，對於ABL這邊來說，既不是特別好，也不是特別差。因此，我們專注於成長演算法，我們對完整的 ;25 感到滿意，儘管正如凱倫所說並加載的那樣。

Okay. That's helpful. And then maybe just, you know, you guys have built quite a cash pile on the balance sheet at this point, which is a good situation to have, any kind of update and just kind of how you're thinking about the priorities to capital allocation. I noticed you didn't really buy much stock this quarter from a repurchase standpoint. So any kind of just update on kind of how you're thinking about capital allocation and if any significant changes there.

好的。這很有幫助。然後也許只是，你知道，你們現在已經在資產負債表上建立了相當多的現金儲備，這是一個很好的情況，任何形式的更新以及你如何考慮資本的優先事項分配。我注意到，從回購的角度來看，本季度您並沒有真正購買太多股票。因此，任何形式的更新都只是關於您如何考慮資本配置以及是否有任何重大變化。

Karen, do you want to start and then I'll follow up?

凱倫，你想先開始，然後我跟進嗎？

Yeah, sounds good. So Tim, we're really pleased with our cash flow generation this year. We had $555 million of free cash flow, which was $44 million higher than last year. So we've demonstrated that we're capable with our cash flow to satisfy all of our priorities. We've invested in our current businesses for growth. We've got a healthy M&A pipeline, we increased the dividend, and we did repurchase $89 million of shares outstanding.

是的，聽起來不錯。提姆，我們對今年的現金流產生非常滿意。我們有 5.55 億美元的自由現金流，比去年增加了 4,400 萬美元。因此，我們已經證明我們有能力利用現金流來滿足我們所有的優先事項。我們對當前業務進行了投資以實現成長。我們擁有健康的併購管道，增加了股息，並且回購了 8,900 萬美元的已發行股票。

So on the share repurchases, at the beginning of the year, we did provide you with expectations that we would repurchase about 40 million to 60 million shares this year. So at the midpoint, we bought back about 80% more than we expected to and we did it at an average price of around $194 a share. So we feel good about all of the repurchases this year and how we executed there. And so then I'll let Neil talk more about the M&A pipeline.

所以在股票回購方面，年初的時候我們確實提供了今年回購大概4000萬到6000萬股的預期。因此，在中期，我們回購了比預期多約 80% 的股票，平均價格約為每股 194 美元。因此，我們對今年的所有回購以及我們的執行方式感到滿意。那麼我將讓尼爾更多地談論併購管道。

Yeah. And before I do that, Tim I I'll just build on Karen's point. I think the takeaway of our cash generation and balance sheet is that we have the capacity to do it all. We have the capacity to invest for growth in our current businesses, which we've demonstrated through the refueling and horticulture vertical and the continued expansion in ISG.

是的。在我這樣做之前，提姆，我會以凱倫的觀點為基礎。我認為我們的現金產生和資產負債表的要點是我們有能力做到這一切。我們有能力投資以促進當前業務的成長，我們透過加油和園藝垂直業務以及 ISG 的持續擴張證明了這一點。

We have increased our dividend. We've repurchased shares as, as Karen pointed out. And then as we look forward, we believe we have a strong pipeline of opportunity of small and medium sized acquisitions to grow both of our businesses.

我們增加了股利。正如凱倫指出的那樣，我們已經回購了股票。然後，展望未來，我們相信我們擁有強大的中小型收購機會來發展我們的業務。

Our priority is around is around ISG and we believe that both our organic and inorganic efforts will continue to be directed towards developing and acquiring disruptive technologies that have the opportunity to bring data together in new and interesting ways that deliver end user outcomes. But I think the core takeaway is that we believe with our performance and our balance sheet that we can do it all from a cash perspective.

我們的首要任務是圍繞 ISG，我們相信我們的有機和無機努力將繼續致力於開發和獲取顛覆性技術，這些技術有機會以新的、有趣的方式將數據整合在一起，從而交付最終用戶結果。但我認為核心要點是，我們相信，憑藉我們的業績和資產負債表，我們可以從現金角度做到這一切。

Christopher Glynn, Oppenheimer & Company.

克里斯托弗·格林，奧本海默公司。

Hey, thanks, congratulations on strong results all year. And I was curious for an update on design select, how the reception is going there, and the independent agency adoption to it, any variation of trends across their early adopters or laggards?

嘿，謝謝，恭喜您全年取得的優異成績。我很好奇設計選擇的最新情況，那裡的接待情況如何，獨立機構的採用情況，早期採用者或落後者的趨勢有何變化？

Yeah, thanks, Chris. So big picture, we're really pleased with the way the portfolio segmentation is going. So the contractor select portfolio has performed exceptionally well. We obviously have the made to order portfolio.

是的，謝謝，克里斯。整體而言，我們對投資組合細分的進展方式非常滿意。因此，承包商選擇的投資組合表現異常出色。顯然我們有客製化的產品組合。

And now as we kind of dig in on design select, Sach and I were on the road over the course of the last couple of weeks, we met with distributors and agents and the reaction is universally positive. Their hope for us is that we bring more and more of our product families into the portfolio.

現在，當我們深入研究設計選擇時，薩赫和我在過去幾週的時間裡一直在路上，我們會見了經銷商和代理商，反應普遍積極。他們對我們的希望是我們將越來越多的產品系列納入產品組合中。

So big picture, it's a lot more effective for each of them to ensure that they're ordering the right things for the projects that they are specking and that our continued increased performance and service levels makes everything better for them, makes them more profitable, makes distributors more profitable, and allows them to choose us.

總的來說，對於他們每個人來說，確保他們為他們所指定的項目訂購正確的東西會更有效，並且我們不斷提高的性能和服務水平使他們的一切變得更好，使他們更有利可圖，讓經銷商獲得更多利潤，讓他們選擇我們。

And so on the agent side there, the reaction has been incredibly positive. Distributors want more of it faster and we're going to continue to methodically turn it out as we meet our internal targets for product vitality and service performance.

因此，在代理商方面，反應非常積極。經銷商希望更快獲得更多產品，我們將繼續有條不紊地實現產品活力和服務效能的內部目標。

That certainly sounds good. And just you mentioned DC projects, data center for the ISG segment and I don't recall you calling that out in the past. So just curious, how much of a driver that vertical is in fiscal '25 anything on win rates pipeline and how that selection process for Distech is rolling around, rolling ahead.

這聽起來確實不錯。剛才您提到了 DC 專案、ISG 部門的資料中心，我不記得您過去曾提到過這一點。因此，我很好奇，在 25 財年的贏率管道中，該垂直領域的驅動力有多大，以及 Distech 的選拔流程如何順利推進。

Yeah, so we obviously had an exceptional quarter on that front last quarter. If we take two steps back on kind of data center control, there's digital control and then there's pneumatic control. We are basically the leader in digital control. So for the scalars who use digital control, we are the choice. And so, so that's what's the driver behind that.

是的，上個季度我們在這方面顯然表現出色。如果我們在資料中心控制方面退後兩步，首先是數位控制，然後是氣動控制。我們基本上是數位控制領域的領導者。因此，對於使用數位控制的標量來說，我們是您的選擇。所以，這就是背後的驅動力。

So it's been a part of our business for the last several years. We had a really good quarter this year, obviously that portion of the business will continue to grow both in the US and in some of the markets outside the US.

因此，過去幾年來，它一直是我們業務的一部分。今年我們的季度業績非常好，顯然這部分業務將在美國和美國以外的一些市場繼續成長。

Thanks. And I'll wrap up with the housekeeping question, $8 million miscellaneous expense, just the context and timing of that.

謝謝。最後我會討論家事問題，即 800 萬美元的雜項開支，以及其背景和時間安排。

Yeah, so the miscellaneous expense, there's a couple of things that fall in there. One is our pension expense, which is pretty consistent quarter over quarter. The big mover this quarter was really around foreign currency movements and that's primarily due to two areas. One is the cash that Distech generates, which is significant.

是的，所以雜項費用，有幾件事屬於其中。其中一個是我們的退休金支出，季度與季度之間相當穩定。本季的重大變動實際上是圍繞外匯變動，這主要歸因於兩個領域。一是 Distech 產生的現金，這點非常可觀。

And so we had some foreign currency movements on the Canadian dollar and then the other would be around our lease liabilities in Mexico and we had some unfavorable movements there. And that's what you saw. So when you look ahead, it really depends on what the FX rates are doing and then we're working to manage our cash effectively.

因此，加元出現了一些外幣波動，而另一種則圍繞著我們在墨西哥的租賃負債，我們在那裡出現了一些不利的波動。這就是你所看到的。因此，當你展望未來時，這實際上取決於外匯匯率的變化，然後我們正在努力有效地管理我們的現金。

Joe O'Dea, Wells Fargo.

喬奧迪，富國銀行。

Hi, good morning, everyone. Thanks for taking my questions. Neil wanted to start just in terms of any additional color tied to your commentary around calendar year 2025 is expected to be pretty strong, any of the contributors there with respect to interest rates or what's been kind of prolonged period of time, with maybe more muted activity and starting to see that shift, but any of the drivers and confidence behind that?

嗨，大家早安。感謝您回答我的問題。尼爾想從與 2025 年左右的評論相關的任何其他色彩開始，預計會非常強烈，任何與利率或相當長一段時間有關的貢獻者，可能會更加柔和活動並開始看到這種轉變，但其背後的驅動因素和信心是什麼？

And then related to that when, when you talk about the growth algorithm within lighting and looking at something in the, you know, if it's mid-single digits through the cycle, just how you break that down in terms of market growth, outgrowth, price for some perspective there.

然後與此相關的是，當你談論照明中的成長演算法並查看其中的某些內容時，你知道，如果它在整個週期中處於中等個位數，那麼你如何根據市場成長、產出來細分它，那裡有一些觀點的價格。

Yeah, sure. So first on the economy, CEOs are notably terrible economists. So this commentary is worth what you're paying for it. I would say we do a fair amount however of data analysis and our data analysis, trend analysis continues to be consistent, which is that there is a fair amount of activity on the horizon generally.

是的，當然。首先在經濟方面，執行長們都是非常糟糕的經濟學家。所以這篇評論是值得你付出代價的。我想說的是，我們做了相當多的數據分析，而且我們的數據分析、趨勢分析仍然保持一致，也就是說，通常會有相當多的活動即將發生。

I'd say, you know, I mentioned Sach and I were traveling with agents and distributors and what they would say is that they are very busy, but projects aren't releasing as consistently or as they will. So in other words, there's stuff building up in the pipeline.

我想說，你知道，我提到薩赫和我正在與代理商和分銷商一起旅行，他們會說他們非常忙碌，但專案並沒有像他們希望的那樣持續發布。換句話說，有一些東西正在醞釀中。

We're obviously going to work through, you know, we were at things like we were in, I'll take one market, for example, we were in Chicago and there's been obviously a significant decrease on the one hand office space that's been put back, on the other hand, a slowdown in warehouse.

顯然，我們將努力解決，你知道，我們正在經歷類似的事情，我會以一個市場為例，我們在芝加哥，一方面辦公空間明顯減少了，另一方面，倉庫放緩。

But the consumption focusing on warehouse for a second has to turn because they're going to reach a low point in capacity. So these things will work themselves out. And so over the longer term, we feel really good about that.

但暫時集中在倉庫上的消費必須轉變，因為它們的容量將達到低點。所以這些事情都會自行解決。因此，從長遠來看，我們對此感覺非常好。

So then transitioning to the growth algorithm and I'll answer each of your questions. So the first is the -- we're the largest in North America. So obviously, we're going to in some manner, be tied to the performance of the industry. So that's kind of step one.

那麼接下來轉向成長演算法，我將回答你們的每個問題。首先是──我們是北美最大的。顯然，我們將以某種方式與業界的表現掛鉤。這就是第一步。

The second is our performance is clearly differentiated from any other lighting company that we can identify in North America and frankly anywhere else. So we will continue to take share. And third is, despite the fact that we are the largest and we are taking share, there are other verticals within the North American lighting industry where we have been either chosen not to compete or underpenetrated.

第二是我們的業績明顯不同於我們在北美以及坦率地說在其他任何地方可以找到的任何其他照明公司。所以我們將繼續分享。第三，儘管我們是最大的公司並且正在搶佔份額，但在北美照明行業中還有其他垂直領域，我們要么選擇不參與競爭，要么滲透不足。

So we spend a minute on refueling, for example. And I will focus on that. We literally had no business, zero in refueling as of 12 months ago. We created a new canopy product portfolio that meets the needs of gas stations, and convenience stores, and QSR restaurants. We signed up the largest agent -- independent agent in the network and we are going to prosecute that opportunity. Opportunities like that can be chunky as they add to the portfolio.

例如，我們會花一分鐘來加油。我將重點關注這一點。我們確實沒有生意，截至 12 個月前，加油量為零。我們創建了一個新的 Canopy 產品組合，可以滿足加油站、便利商店和 QSR 餐廳的需求。我們簽了網路中最大的代理——獨立代理，我們將抓住這個機會。當這樣的機會添加到投資組合中時，它們可能會變得龐大。

So we feel good about the mix of those three things. So we're confident that whatever the lighting industry growth is, we will outgrow it. And then finally, on the strategy on price, so we believe that through our product vitality efforts and through our service, we are delivering more valuable products and services to the industry and we will get paid for that.

所以我們對這三件事的結合感覺很好。因此，我們相信，無論照明行業的成長如何，我們都將超越它。最後，在價格策略上，我們相信，透過我們在產品活力方面的努力和我們的服務，我們正在為產業提供更有價值的產品和服務，我們將因此獲得報酬。

So we have a strategic pricing strategy, which allows us to focus on continuing to one, deliver that value to the lighting industry. So they will continue to reap the benefits of that. At the same time, we can continue to earn higher margins. So we feel really good about where ABL is positioned now as we look forward to the next three to five years.

因此，我們制定了策略性定價策略，使我們能夠專注於繼續為照明產業提供這一價值。因此，他們將繼續從中受益。同時，我們可以繼續賺取更高的利潤。因此，我們對 ABL 現在的定位非常滿意，同時也期待未來三到五年的發展。

I appreciate all the color. And then also just wanted to ask on the East Coast port situation, just any color on your exposure there, your approach to kind of managing the situation. Not sure if there's any sort of buffer inventory that you're looking at and how you think about sort of timeline before it could convert to any challenges for your operating model.

我欣賞所有的顏色。然後我也想問一下東海岸港口的情況，你在那裡的暴露情況，你處理這種情況的方法。不確定您是否正在考慮任何類型的緩衝庫存，以及在它轉變為您的營運模式面臨的任何挑戰之前您如何考慮某種時間表。

On the West Coast ports, most of our products come into the West Coast ports. So we do ship a few specific products from the East Coast, but you know, depending on how long it lasts, we feel pretty good about where we are from an inventory position on those specific products, so that customers won't be impacted. There could be some secondary impact as volumes move to the West Coast, but we don't believe we should be materially impacted at this time and are just continuing to monitor the situation.

在西海岸港口，我們大部分的產品進入西海岸港口。因此，我們確實從東海岸運送了一些特定產品，但你知道，根據其持續時間，我們對這些特定產品的庫存狀況感到非常滿意，這樣客戶就不會受到影響。隨著產量轉移到西海岸，可能會產生一些次要影響，但我們認為目前不會受到重大影響，並且正在繼續監測情況。

(Operator Instructions) Brian Lee, Goldman Sachs & Company.

（操作員指示）Brian Lee，高盛公司。

Hey guys, good morning. Thanks for taking the questions. I guess first one, just as I think about the different segments and channels, the independent sales network, obviously a big one for you guys, you know, back to growth first time in over a year plus.

嘿夥計們，早安。感謝您提出問題。我想第一個，就像我想到不同的細分市場和管道一樣，獨立的銷售網絡，顯然對你們來說是一個大問題，你知道，一年多來首次恢復成長。

Are you seeing a true inflection and trends or maybe kind of speak to the outlook for that business? And, and if you can help bracket what you think growth scenarios look like for that specifically in '25, is that flat, up low, single, mid, single or just trying to get a sense specifically on that part of the business?

您是否看到了真正的變化和趨勢，或者是否可以談論該業務的前景？而且，如果您可以幫助列出您認為的 25 年成長情景，是持平、低位上升、單一、中期、單一還是只是試圖具體了解這部分業務？

Yeah, Brian, thanks for joining. I would just build on my answer to Joe there. So from a trend perspective, as Karen said, we expect the lighting business generally to be in the low to mid-single digits growth this year, which is more skewed towards calendar year '25.

是的，布萊恩，感謝您的加入。我只是以我對喬的回答為基礎。因此，從趨勢的角度來看，正如凱倫所說，我們預計照明業務今年總體將呈低至中個位數成長，這更傾向於 25 日曆年。

I will take a minute to outline and emphasize the power of our independent sales network. So I haven't talked about that in a while, but it's worth taking a step back and reflecting on that, you know, it's round number 60% of our lighting business. We have about 80 agents in North America. They have about on average 50 FTE.

我將花一點時間概述並強調我們獨立銷售網路的力量。所以我已經有一段時間沒有談論這個了，但值得退後一步並反思一下，你知道，它占我們照明業務的 60%。我們在北美擁有約 80 家代理商。他們的 FTE 平均約為 50 人。

So we have 4,000 sales support professionals throughout North America selling our products. We are generally number one in each market in which we compete. They are generally number one in each market they compete, and the symbiotic relationship between them and us is really strong.

因此，我們在北美有 4,000 名銷售支援專業人員銷售我們的產品。我們通常在我們參與競爭的每個市場中排名第一。他們通常在每個競爭的市場中都是第一，他們和我們之間的共生關係非常牢固。

So going all the way back to when I first got here and we immediately kind of went into the pandemic and all of the (inaudible) of the global supply chain stuff that followed that. Our agent performance, the performance of the independent sales network has been very consistent.

因此，回到我第一次來到這裡時，我們立即陷入了疫情以及隨之而來的所有（聽不清楚）全球供應鏈問題。我們的代理業績、獨立銷售網絡的業績已經非常一致。

So they're continuing to perform for us and are an important part of our growth. And as I mentioned, once we've been out on the road talking to them, they're working very hard. They have a lot of activity right now. Projects are a little slow to release, but they will over time. So taken together that you know, kind of they are a contributor, but not the only contributor to our expected continued mid-single digit sales growth over a long period of time on the lighting business.

因此，他們將繼續為我們做出貢獻，並且是我們成長的重要組成部分。正如我所提到的，一旦我們出去與他們交談，他們就會非常努力地工作。他們現在有很多活動。項目的發布有點慢，但隨著時間的推移它們會的。綜上所述，您知道，他們是貢獻者，但不是我們預計照明業務在很長一段時間內持續實現中個位數銷售成長的唯一貢獻者。

Okay. Super helpful and then maybe just question on the gross margins. If I look at the fiscal '25 guidance here, it implies if our numbers are right on gross margin essentially flat on a percentage basis with fiscal '24 where you obviously had very good performance on that metric. So, is it fair to assume the additional margin leverage in fiscal '25 is coming more at the operating level.

好的。超級有幫助，然後可能只是關於毛利率的問題。如果我看一下 25 財年的指導，這意味著我們的毛利率數字是否正確，與 24 財年的百分比基本持平，在該指標上，您顯然有非常好的表現。因此，假設 25 財年的額外利潤槓桿將更能體現在營運層面是否公平？

And then as we think about that, just maybe contextualize, you know, the long term target for 50 basis points to 100 basis points annually. Is that going to be a split between ongoing gross margin leverage and at the OpEx line or is it more going to be shifting toward kind of leverage on the OpEx line? Like it seems like it could be for '25? Thanks, guys.

然後，當我們思考這一點時，也許可以將每年 50 到 100 個基點的長期目標結合起來。這是持續的毛利率槓桿和營運支出線之間的分歧，還是更多地轉向營運支出線的槓桿？好像是25年的？謝謝，夥計們。

Yeah, thanks for the question. Let me highlight a couple of things on that. First is, it's fair to say that our gross margin performance has been incredibly strong over the last several years and we don't think that that's going to abate.

是的，謝謝你的提問。讓我強調幾點。首先，可以公平地說，過去幾年我們的毛利率表現非常強勁，我們認為這種情況不會減弱。

So the second on the OpEx line is that we have some geographic changes. So for example, as we invest in technology to help power the gross margin improvement, that technology investment shows up in [SDNA] as we now focus on operating profit margin and the combination of those two, we think the 50 basis points to 100 basis points annual target can continue for the foreseeable future. It will be a mix of those two.

因此，在營運支出方面的第二個問題是我們發生了一些地理變化。例如，當我們投資科技來幫助提高毛利率時，科技投資就會出現在 [SDNA] 中，因為我們現在專注於營業利潤率以及這兩者的結合，我們認為 50 個基點到 100 個基點積分年度目標在可預見的未來可以持續下去。這將是這兩者的混合。

So it won't be perfectly linear in any specific period. But we believe that we have opportunities in both areas. We have the opportunity to continue on gross margin expansion to varying degrees in different years. And we believe that we have the opportunity to leverage OpEx as we continue, while we still continue to invest to drive a higher margin.

所以在任何特定時期它都不會是完全線性的。但我們相信我們在這兩個領域都有機會。我們有機會在不同年份繼續不同程度地擴大毛利率。我們相信，隨著我們的繼續，我們有機會利用營運支出，同時我們仍然繼續投資以提高利潤率。

So taken together, I really wanted to use this opportunity to highlight how powerful our lighting business is. It is clearly a top performer in its industry. We have demonstrated that both we can outgrow the industry and we can continue to expand margins. So it's a strategically valuable industry-leading asset for us for the long term.

綜上所述，我真的很想利用這個機會來強調我們的照明業務有多強大。它顯然是其行業中表現最好的公司。我們已經證明，我們不僅可以超越整個產業，而且可以繼續擴大利潤率。因此，從長遠來看，它對我們來說是一項具有戰略價值的產業領先資產。

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

謝謝。目前我在隊列中沒有顯示任何其他問題。我想將電話轉回給尼爾，讓他發表結束語。

Great. Thank you all for joining us today. We're very pleased with the performance in our fiscal 2024. It was incredibly strong. As we look forward to FY25, our lighting business will continue to be the industry leader. That business will grow. We have a clear algorithm to do that. We will continue to expand margins there for the foreseeable future.

偉大的。感謝大家今天加入我們。我們對 2024 財年的業績非常滿意。展望25財年，我們的照明業務將持續保持產業領先地位。該業務將會成長。我們有一個明確的演算法來做到這一點。在可預見的未來，我們將繼續擴大那裡的利潤率。

And we're excited about the opportunities in our spaces group as we continue to deliver disruptive technologies that stitch data together in new and interesting ways to drive end user outcomes. We feel like we can continue to expand what we can control and where we can compete and we're excited about that possibility.

我們對太空團隊中的機會感到興奮，因為我們將繼續提供顛覆性技術，以新穎有趣的方式將資料拼接在一起，以推動最終用戶的成果。我們覺得我們可以繼續擴大我們可以控制的範圍和我們可以競爭的範圍，我們對這種可能性感到興奮。

And finally, all of that delivers incredibly strong cash generation for us to use capital allocation to drive value for stakeholders and compound wealth for our shareholders. So we're looking forward to the year ahead and the year after that and the year after that. So thank you for being with us this morning and we'll talk to you again in another quarter.

最後，所有這些都為我們提供了令人難以置信的強勁現金生成，使我們能夠利用資本配置為利害關係人創造價值，並為股東創造複合財富。因此，我們期待著來年、後年和後年。感謝您今天早上接受我們採訪，我們將在下一個季度再次與您交談。

This concludes today's conference call. Thank you for your participation. 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。