Concrete Pumping Holdings Inc (BBCP) 2023 Q2 法說會逐字稿

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Concrete Pumping Holdings' financial results for the second quarter ended April 30, 2023. Joining us today are Concrete Pumping Holdings' CEO, Bruce Young; CFO, Iain Humphries; and the company's External Director of Investor Relations, Cody Slach.

大家下午好，感謝大家參加今天的電話會議，討論 Concrete Pumping Holdings 截至 2023 年 4 月 30 日的第二季度財務業績。今天加入我們的是 Concrete Pumping Holdings 首席執行官 Bruce Young；首席財務官伊恩·漢弗萊斯；以及公司投資者關係外部總監 Cody Slach。

Before we go further, I would like to turn the call over to Mr. Slach to read the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

在我們進一步討論之前，我想請 Slach 先生閱讀該公司 1995 年《私人證券訴訟改革法案》含義內的安全港聲明，該聲明提供了有關前瞻性聲明的重要警告。科迪，請繼續。

Thanks, Camilla. I'd like to remind everyone that in the course of this call, to give you a better understanding of our operations, we will be making certain forward-looking statements regarding our business and outlook. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see Concrete Pumping Holdings' annual report on Form 10-K, quarterly report on Form 10-Q, and other publicly available filings with the SEC.

謝謝，卡米拉。我想提醒大家，在這次電話會議中，為了讓您更好地了解我們的運營，我們將就我們的業務和前景做出一些前瞻性聲明。這些陳述存在許多風險和不確定性，可能導致實際結果與此類陳述存在重大差異。有關這些風險和不確定性的信息，請參閱 Concrete Pumping Holdings 的 10-K 表年度報告、10-Q 表季度報告以及向 SEC 提交的其他公開文件。

The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

該公司不承擔任何更新或修改任何前瞻性陳述的意圖或義務，無論是由於新信息、未來事件還是其他原因。

On today's call, we will also reference certain non-GAAP financial measures, including adjusted EBITDA, net debt and free cash flow, which we believe provide useful information for investors. We provide further information about these non-GAAP financial measures and reconciliations to the comparable GAAP measures in our press release issued today or the investor presentation posted on the company's website.

在今天的電話會議上，我們還將參考某些非公認會計準則財務指標，包括調整後的 EBITDA、淨債務和自由現金流，我們認為這些指標為投資者提供了有用的信息。我們在今天發布的新聞稿或公司網站上發布的投資者演示文稿中提供了有關這些非公認會計原則財務指標以及與可比公認會計原則指標的調節的更多信息。

I'd like to remind everyone that this call will be available for replay later this evening. A webcast replay will also be available via the link provided in today's press release as well as on the company's website. Additionally, we have posted an updated investor presentation to the company's website.

我想提醒大家，這個電話會議將於今晚晚些時候重播。還可以通過今天新聞稿中以及公司網站上提供的鏈接進行網絡廣播重播。此外，我們還在公司網站上發布了更新的投資者介紹。

Now I'd like to turn the call over to the CEO of Concrete Pumping Holdings, Bruce Young. Bruce?

現在我想將電話轉給 Concrete Pumping Holdings 首席執行官 Bruce Young。布魯斯？

Thank you, Cody, and good afternoon, everyone. I'm pleased to report that in our second quarter, we experienced 12% revenue growth, making our seventh consecutive quarter of double-digit revenue gains. This consisted of growth across all segments, and it was driven by continued market share gains and recent and accretive acquisitions and organic growth. These strong results would have exceeded our expectations had we not experienced above-average rainfall in most of our markets west of the Rocky Mountains as well as in our home state of Colorado.

謝謝你，科迪，大家下午好。我很高興地向大家報告，第二季度的收入增長了 12%，連續第七個季度實現兩位數的收入增長。這包括所有細分市場的增長，並且是由持續的市場份額增長以及最近的增值收購和有機增長推動的。如果我們落基山脈以西的大部分市場以及我們的家鄉科羅拉多州沒有經歷高於平均水平的降雨量，那麼這些強勁的業績將超出我們的預期。

From an end market perspective, we have seen encouraging growth primarily in large commercial projects like distribution centers, warehouses, semiconductor fabrication plants and EV and battery manufacturing plants. We expect this demand to continue given U.S. reshoring trends as companies look to build out their domestic manufacturing footprint. While demand for large commercial projects is strong, concrete pumping demand from light commercial projects has been comparatively weaker due to higher interest rates and some impact from reduced availability of financing from smaller regional banks. Despite this, our expectation for the commercial market for -- in fiscal year 2023 remains strong. Opportunities with large manufacturing, particularly as we head into peak summer construction seasons.

從終端市場的角度來看，我們主要看到配送中心、倉庫、半導體製造廠以及電動汽車和電池製造廠等大型商業項目的令人鼓舞的增長。鑑於美國企業尋求擴大其國內製造足跡，美國回流趨勢，我們預計這種需求將持續下去。雖然大型商業項目的需求強勁，但由於利率上升以及小型區域銀行融資減少的影響，輕型商業項目的混凝土泵送需求相對較弱。儘管如此，我們對 2023 財年商業市場的預期仍然強勁。大型製造業的機會，特別是當我們進入夏季建築高峰季節時。

Turning to infrastructure. Our expanding U.S. national footprint continued to drive strong results as it allowed us to capture more revenue from public project investments. We will continue to work to win state and local projects, and look forward to renewed investment in the U.S. with the Infrastructure Investment and Jobs Act, where we have recently seen an improved visibility of funds flowing to numerous projects, many of which are located in existing markets that we operate in. We plan to aggressively pursue these project opportunities and believe it has the potential to be a 5-year-plus tailwind for our business.

轉向基礎設施。我們不斷擴大的美國全國足跡繼續帶來強勁的業績，因為它使我們能夠從公共項目投資中獲得更多收入。我們將繼續努力贏得州和地方項目，並期待通過《基礎設施投資和就業法案》重新在美國進行投資，最近我們看到資金流向眾多項目的可見性有所提高，其中許多項目位於我們計劃積極尋求這些項目機會，並相信它有可能成為我們業務五年多的推動力。

During the second quarter, our residential segment remained relatively stable due to the ongoing structural supply-demand imbalance in housing. The moderate declines we experienced in Q2 were absorbed by commercial work, highlighting the value of our diverse offering and agility in our fleet management. For example, since the end of fiscal 2022, as a percentage of our total revenue, our residential work volumes have traded 400 basis points with growth in our commercial markets. For the remainder of fiscal 2023, we expect residential revenue to remain relatively consistent with the 29% of revenue we are experiencing today, which is in line with historical trends.

第二季度，由於住房結構性供需失衡，我們的住宅板塊保持相對穩定。我們在第二季度經歷的適度下降被商業工作所吸收，凸顯了我們多元化產品和車隊管理敏捷性的價值。例如，自 2022 財年末以來，隨著商業市場的增長，我們的住宅工作量占我們總收入的百分比增加了 400 個基點。在 2023 財年的剩餘時間內，我們預計住宅收入將與我們今天所經歷的收入的 29% 保持相對一致，這符合歷史趨勢。

Shifting to the cost side of our business, small improvements and input costs, particularly in stabilization of diesel fuel, were mostly offset by a deleveraging effect we experienced in our labor due to above-average rainfall, that, as I discussed earlier, that impacted our equipment utilization. Our team continues to recalibrate our rates successfully across all business segments and realize the expected equipment return on investment for the same volume of work performed. In summary, we had another great quarter that continues to show the strength of our business with 12% top line growth and 7% growth in adjusted EBITDA.

轉向我們業務的成本方面，小幅改進和投入成本，特別是在柴油燃料的穩定方面，大部分被我們勞動力中由於降雨量高於平均水平而經歷的去槓桿化效應所抵消，正如我之前討論的那樣，這影響了我們的勞動力。我們的設備利用率。我們的團隊繼續成功地重新調整所有業務部門的費率，並實現相同工作量的預期設備投資回報。總而言之，我們又度過了一個出色的季度，繼續展示了我們業務的實力，營收增長了 12%，調整後 EBITDA 增長了 7%。

I will let Iain walk through more details on our financial results before I return to provide some concluding remarks. Iain?

在我回來提供一些結論性意見之前，我將讓伊恩詳細介紹我們的財務業績。伊恩？

Thanks, Bruce, and good afternoon, everyone. By segment, Q2 revenue in our U.S. Pumping Business increased 9%, mostly due to contributions from our recent acquisition of Coastal Carolina, but also from strong regional organic growth.

謝謝布魯斯，大家下午好。按部門劃分，我們美國泵送業務第二季度的收入增長了 9%，這主要歸功於我們最近收購了 Coastal Carolina 的貢獻，但也得益於強勁的區域有機增長。

In our U.K. segment, operating largely under the Camfaud brand, despite foreign exchange headwinds, U.S. dollar revenues increased 13% compared to the prior year quarter. Excluding the FX translation impact, revenue grew by 22%. Our team continues to secure energy, road and rail projects in addition to the work we have previously announced with the concrete-intensive high-speed rail project, HS2, which is expected to last beyond 2030.

在我們的英國部門，主要以 Camfaud 品牌運營，儘管存在外匯不利因素，但美元收入與去年同期相比增長了 13%。排除外匯換算影響，收入增長了 22%。除了我們之前宣布的混凝土密集型高速鐵路項目 HS2（預計將持續到 2030 年之後），我們的團隊還將繼續確保能源、公路和鐵路項目的安全。

In our U.S. Concrete Waste Management Services segment, operating under the Eco-Pan brand, we continue to deliver exceptional results, including increasing the revenue on an organic basis by 26% compared to the same year ago quarter. This continues to be driven by investments we made in our sales team, and the value of our enhanced service offering. Going forward, we expect to maintain Eco-Pan's double-digit organic revenue growth given our continued investment in our team and equipment, its penetration in the market and the continued evolution of the method used in concrete construction projects to contain concrete waste.

在我們以 Eco-Pan 品牌運營的美國混凝土廢物管理服務部門中，我們繼續取得卓越的業績，包括與去年同期相比，有機收入增長了 26%。這繼續受到我們對銷售團隊的投資以及我們增強的服務產品的價值的推動。展望未來，鑑於我們對團隊和設備的持續投資、市場滲透以及混凝土建築項目中用於控制混凝土廢物的方法的持續發展，我們預計將保持 Eco-Pan 兩位數的有機收入增長。

Returning to our consolidated results. Gross margin in the second quarter was 40.3% compared to 40.4% in the same year ago quarter. As Bruce noted earlier, small improvements in input costs, particularly in diesel fuel, were mostly offset by higher labor cost due to lower equipment utilization.

回到我們的綜合結果。第二季度毛利率為 40.3%，去年同期毛利率為 40.4%。正如布魯斯之前指出的那樣，投入成本（特別是柴油燃料）的小幅改善大部分被設備利用率降低導致的勞動力成本上升所抵消。

General and administrative expenses in Q2 were $30.3 million, up $1.7 million from $28.6 million in the same year ago quarter, primarily as a result of the head count additions and higher labor costs related to recent acquisitions. As a percentage of revenue, G&A costs were 28.1% in the second quarter compared to 29.6% in the same year ago quarter. This is illustrative of the operating efficiencies we typically achieve as we scale both organically and through M&A.

第二季度的一般和管理費用為 3030 萬美元，比去年同期的 2860 萬美元增加了 170 萬美元，這主要是由於人員數量的增加以及與最近收購相關的勞動力成本上升所致。第二季度 G&A 成本佔收入的百分比為 28.1%，而去年同期為 29.6%。這說明了我們在有機擴張和通過併購擴張時通常實現的運營效率。

The $2.8 million year-over-year improvement in income from operations was realized by more than offset by higher interest and income tax expense. As a result, net income available to common shareholders in the second quarter slightly declined to $5.2 million or $0.09 per diluted share compared to $5.6 million or $0.10 per diluted share in the same year ago quarter.

運營收入同比增長 280 萬美元，但被利息和所得稅費用增加所抵消。因此，第二季度普通股股東可獲得的淨利潤小幅下降至 520 萬美元，即稀釋後每股收益 0.09 美元，而去年同期為 560 萬美元，即稀釋後每股收益 0.10 美元。

Consolidated adjusted EBITDA in the second quarter increased 7% to $28.8 million compared to $27.1 million in the same year ago quarter. Adjusted EBITDA margin declined slightly to 26.7% compared to 28% in the same year ago quarter.

第二季度綜合調整後 EBITDA 增長 7%，達到 2880 萬美元，而去年同期為 2710 萬美元。調整後 EBITDA 利潤率小幅下降至 26.7%，而去年同期為 28%。

Moving on to our results by segment. In our U.S. Concrete Pumping business, adjusted EBITDA declined 5% to $17.1 million compared to $18 million in the same year ago quarter given the weather impacts west of the Rockies and Colorado on our operating leverage. In our U.K. business, adjusted EBITDA increased 22% to $4.6 million compared to $3.8 million in the same year ago quarter. For our U.S. Concrete Waste Management Services business, adjusted EBITDA improved 39% to $6.5 million compared to $4.6 million in the same year ago quarter.

接下來看看我們按細分市場劃分的結果。在我們的美國混凝土泵送業務中，考慮到落基山脈以西和科羅拉多州的天氣對我們的運營槓桿的影響，調整後的 EBITDA 下降了 5%，至 1710 萬美元，而去年同期為 1800 萬美元。在我們的英國業務中，調整後的 EBITDA 增長了 22%，達到 460 萬美元，而去年同期為 380 萬美元。對於我們的美國混凝土廢物管理服務業務，調整後的 EBITDA 增長了 39%，達到 650 萬美元，而去年同期為 460 萬美元。

Turning to liquidity. As at April 30, 2023, we had total debt outstanding of $436 million, or net debt of $429 million. We had approximately $100 million in liquidity as at April 30, 2023, which includes cash on the balance sheet and availability from our ABL facility. Furthermore, last week, we upsized our asset-based lending facility from $160 million to $225 million, while also extending its maturity to June 2028.

轉向流動性。截至 2023 年 4 月 30 日，我們的未償債務總額為 4.36 億美元，淨債務為 4.29 億美元。截至 2023 年 4 月 30 日，我們擁有約 1 億美元的流動資金，其中包括資產負債表上的現金和 ABL 設施的可用資金。此外，上週我們將資產抵押貸款額度從 1.6 億美元擴大到 2.25 億美元，同時將其期限延長至 2028 年 6 月。

We are delighted to welcome the team from PNC Bank into our ABL relationship and appreciate the continued support from the teams of Wells Fargo and JPMorgan Chase. We believe this development further enhances our ability to pursue accretive investment opportunities and support our overall long-term growth strategy.

我們很高興歡迎 PNC 銀行團隊加入我們的 ABL 關係，並感謝富國銀行和摩根大通團隊的持續支持。我們相信，這一發展進一步增強了我們尋求增值投資機會並支持我們整體長期增長戰略的能力。

As a reminder, we have no near-term debt maturities, with our senior notes maturing in 2026, and our asset-based lending facility now maturing in 2028. We remain in a strong free cash flow and liquidity position, which provides further optionality to pursue value-added investment opportunities like accretive M&A, continued investment in Eco-Pan and our concrete pumping fleet.

提醒一下，我們沒有短期債務到期日，我們的優先票據將於 2026 年到期，而我們的基於資產的貸款工具目前將於 2028 年到期。我們仍然保持強勁的自由現金流和流動性狀況，這為我們提供了進一步的選擇尋求增值投資機會，例如增值併購、對 Eco-Pan 和我們的混凝土泵送車隊的持續投資。

In the second quarter, the company repurchased approximately 339,000 shares for $2.3 million. As at April 30, 2023, we had approximately $10.1 million remaining under the existing share repurchase authorization. We are encouraged by what we're seeing in our business and the momentum that we are carrying into the coming quarters.

第二季度，該公司以 230 萬美元回購了約 339,000 股股票。截至 2023 年 4 月 30 日，我們現有的股票回購授權剩餘約 1,010 萬美元。我們對業務中所看到的情況以及未來幾個季度的勢頭感到鼓舞。

As a result, our fiscal year 2023 financial outlook remains unchanged. As a reminder of our 2023 previously stated guidance, we continue to expect fiscal year revenue to range between $420 million and $445 million, adjusted EBITDA to range between $125 million and $135 million, and free cash flow, which we define as adjusted EBITDA, less net replacement CapEx and less cash paid for interest, to range between $65 million and $75 million.

因此，我們 2023 財年的財務前景保持不變。作為對我們之前提出的 2023 年指引的提醒，我們仍然預計本財年收入將在 4.2 億至 4.45 億美元之間，調整後 EBITDA 將在 1.25 億至 1.35 億美元之間，自由現金流（我們將其定義為調整後 EBITDA）減去淨置換資本支出減去利息支付的現金，範圍在 6500 萬美元至 7500 萬美元之間。

Operationally and financially, we have a solid foundation, and we have confidence in executing on our growth strategy.

在運營和財務方面，我們擁有堅實的基礎，並且我們有信心執行我們的增長戰略。

With that, I will now turn the call back over to Bruce.

這樣，我現在將把電話轉回布魯斯。

Thanks, Iain. In summary, we are very pleased with another record quarter driven by double-digit top line growth and expansion in every segment. We continue to prove the compelling business proposition of our high-value service and the necessity of our mission-critical service offering in the construction industry, which positions us well for 2023 and beyond.

謝謝，伊恩。總而言之，我們對在每個細分市場實現兩位數營收增長和擴張的推動下又一個創紀錄的季度感到非常高興。我們繼續證明我們的高價值服務具有令人信服的商業主張，以及我們在建築行業提供關鍵任務服務的必要性，這使我們在 2023 年及以後處於有利地位。

We anticipate ongoing growth in our infrastructure and commercial end markets given the industry trends that we discussed in our ability to capitalize on them given our broad and growing footprint and momentum with heavy commercial projects. Our focus remains on optimizing end market mix to continue to deliver strong top and bottom line growth as we move into the peak summer construction season. We will also continue to focus on maximizing shareholder value by leveraging our unique operational capabilities, high-value service offering and executing on opportunistic accretive M&A while strategically balancing our leverage.

鑑於我們在利用基礎設施和商業終端市場的能力方面討論的行業趨勢，我們預計基礎設施和商業終端市場將持續增長，考慮到我們廣泛且不斷增長的足跡以及大型商業項目的勢頭。我們的重點仍然是優化終端市場組合，以在進入夏季施工旺季時繼續實現強勁的收入和利潤增長。我們還將繼續專注於通過利用我們獨特的運營能力、高價值服務和執行機會性增值併購來實現股東價值最大化，同時戰略性地平衡我們的影響力。

With that, I would like to turn the call back over to the operator for Q&A. Camilla?

這樣，我想將電話轉回給接線員進行問答。卡米拉？

(Operator Instructions) And our first question will come from Tim Mulrooney with William Blair.

（操作員說明）我們的第一個問題將由蒂姆·馬爾魯尼和威廉·布萊爾提出。

A couple of questions here. So if I exclude the contribution from Carolina Coastal, it looks like organic revenue growth in your U.S. Concrete business was up maybe low single digit in the second quarter. Is it the type of momentum you'd expect as you head into the second half of the fiscal year?

這裡有幾個問題。因此，如果我排除卡羅萊納海岸的貢獻，那麼第二季度美國混凝土業務的有機收入增長可能會達到低個位數。這是您在進入本財年下半年時所期望的動力類型嗎？

Yes. Tim, one thing, and obviously, we talked about the weather impact in the second quarter as well, which is not typical. I would maybe add to what you said. There was about $3 million or $4 million of weather-affected growth that we would have normally seen in the second quarter. And obviously, that plays in our utilization as well. So on the organic side, you're right, but I would add to what you said that the weather certainly played more of a part in this quarter than we've seen in the comparable year last year. But now, obviously, moving into Q3 and Q4, with the weather breaking, we would expect improved volume from improved utilization and the same again in Q4.

是的。蒂姆，有一件事，顯然，我們也討論了第二季度的天氣影響，這並不典型。我也許會補充你所說的內容。我們通常會在第二季度看到大約 300 萬或 400 萬美元的受天氣影響的增長。顯然，這也影響我們的利用率。因此，在有機方面，您是對的，但我想補充一下您所說的，與去年同期相比，天氣在本季度發揮的作用肯定更大。但現在，顯然，進入第三季度和第四季度，隨著天氣的變化，我們預計產量會因利用率的提高而增加，第四季度也會出現同樣的情況。

Okay. All right. So it sounds like maybe we're talking really normalized mid- to high-single-digit organic growth is how that business is trending. If you split that up between pricing and volume on a normalized basis, how are you thinking about the business?

好的。好的。因此，聽起來我們可能正在談論真正正常化的中高個位數有機增長，這就是該業務的趨勢。如果您在標準化的基礎上將其分為定價和銷量，您如何看待這項業務？

Yes. A good way to think about that. So looking at the second quarter, so there's 12% year-over-year growth, 5%, like you said, was on the M&A side and then 7% on organic. Of that 7% organic, it's about 2% volume, 5% price.

是的。思考這個問題的好方法。看看第二季度，同比增長 12%，正如您所說，併購方面增長 5%，有機增長 7%。在這 7% 的有機產品中，大約有 2% 是銷量，5% 是價格。

Got it. So still a strong pricing environment. Just one more from me, if you don't mind. The EBITDA margins, they were, I think, down a little bit in the U.S. Concrete Pumping. Just curious if you're able to quantify the impact from excess rainfall? Would you think the EBITDA margin would have been without that impact? Just trying to get an idea how to think about margin expansion or contraction as we head in the second half of the year.

知道了。因此定價環境仍然強勁。如果你不介意的話，我再發一份。我認為，美國混凝土泵送業的 EBITDA 利潤率略有下降。只是好奇您是否能夠量化過量降雨的影響？您認為 EBITDA 利潤率不會受到這種影響嗎？只是想了解一下在今年下半年如何考慮利潤率擴張或收縮。

Yes, good question. The EBITDA margin impact from weather is about half. The other half -- there's still some lagging effects of inflation mostly around labor, and that would make up the other half. One thing on inflation that has stabilized in the second quarter was on the fuel side. So there's still a little bit of a hangover on the inflation piece in that margin.

是的，好問題。天氣對 EBITDA 利潤率的影響約為一半。另一半——通貨膨脹仍然有一些滯後影響，主要是圍繞勞動力，這將彌補另一半。第二季度通脹趨於穩定的一個因素是燃料方面。因此，該利潤率中的通脹部分仍然存在一些後遺症。

(Operator Instructions) Our next question will come from Brent Thielman with D.A. Davidson.

（操作員說明）我們的下一個問題將由 D.A. 的 Brent Thielman 提出。戴維森。

Iain, just following up on that last comment about some of the margin compression related to inflation, as you mentioned, it looks like fuel costs have sort of abated to some degree. What other factors we'd be sort of thinking about here in the second half just in terms of inflationary impacts on the business? I would think with fuel abating, you'd have some runway for margins here.

伊恩，正如您所提到的，正如您所提到的，正如您所提到的，剛剛對最後關於與通貨膨脹相關的利潤壓縮的評論進行了跟進，看起來燃料成本已經在某種程度上有所下降。就通脹對業務的影響而言，下半年我們還會考慮哪些其他因素？我認為隨著燃料的減少，你會有一些利潤空間。

Yes, certainly on the quarters 3 and 4. Most of that comes from improved utilization, as I mentioned earlier. It's hard through the second quarter with -- when you've got the weather affected utilization piece. So yes, on the margin improvement, we expect a lot of that comes from the pull-through in utilization. There is a slight element of inflation in there, mostly around the labor cost. But obviously, we're looking forward to Q3 and Q4 where we have more utilization of the equipment, which feeds nicely at the utilization of our employees, which then, in turn, generates that typical improved margin you've seen in Q3 and Q4.

是的，當然是在第三季度和第四季度。正如我之前提到的，其中大部分來自利用率的提高。當你得到天氣影響的利用率時，第二季度會很困難。所以，是的，就利潤率的改善而言，我們預計其中很大一部分來自於利用率的提升。其中存在輕微的通貨膨脹因素，主要是圍繞勞動力成本。但顯然，我們期待第三季度和第四季度我們對設備的利用率更高，這很好地提高了我們員工的利用率，進而產生您在第三季度和第四季度看到的典型的利潤率提高。

Okay. And you guys experienced some pretty significant pressures just associated with tough weather, I guess, particularly in the West and felt some of that in the first quarter, too. How do you think about the snapback you can see here in the second half of the year as there's a lot of work you can make up for? I'm just -- obviously, there's still constraints out there in terms of how much you can actually get done. I'm just curious how you think about this volume snapback into the second half given tough first half weather?

好的。我想，你們經歷了一些與惡劣天氣相關的相當大的壓力，特別是在西方，並且在第一季度也感受到了一些壓力。你如何看待下半年你可以看到的快速反彈，因為有很多工作可以彌補？我只是——顯然，在你實際能完成多少方面仍然存在限制。我只是好奇，鑑於上半場天氣惡劣，您如何看待下半年的銷量？

Yes. Thanks for that question, Brent. The markets are responding really nicely. The commercial market has been really strong. We've started into Q3 now, and we feel really good about the revenues in commercial. Bidding activity is really good in commercial right now, and the project starts are becoming stronger. The infrastructure bill is becoming clear where the dollars are allocated on that. And while the bidding activity hasn't started yet, we expect that to start fairly soon as well and could have some impact on that later in the year and into next year as well.

是的。謝謝你提出這個問題，布倫特。市場的反應非常好。商業市場非常強勁。我們現在已經進入第三季度，我們對商業收入感覺非常好。目前商業招投標活動非常活躍，項目開工力度也越來越大。基礎設施法案的資金分配方向正在變得越來越清晰。雖然招標活動尚未開始，但我們預計也會很快開始，並可能對今年晚些時候和明年產生一些影響。

Okay. And Bruce, maybe just one more. I mean how much of the commercial business has sort of evolved or trended towards these larger projects, data centers, manufacturing, warehouses? I guess I'm just wondering are you still seeing a fair number of opportunities within the kind of the lighter commercial vertical. Maybe if you could parse that out, that would be helpful.

好的。還有布魯斯，也許還有一個。我的意思是，有多少商業業務已經發展或趨向於這些更大的項目、數據中心、製造、倉庫？我想我只是想知道您是否仍然在較輕的商業垂直領域看到相當多的機會。也許如果你能解析出來，那會很有幫助。

We don't separate that out as a percentage. But I would say the volume of the larger projects have become a significantly greater part of our commercial market than what we've seen.

我們不會將其以百分比形式分開。但我想說的是，大型項目在我們商業市場中所佔的份額比我們所看到的要大得多。

At this time, this concludes our question-and-answer session. I would now like to turn the call back over to Mr. Young for closing remarks.

至此，我們的問答環節就結束了。現在，我想將電話轉回給楊先生，讓其致閉幕詞。

Thank you, Camilla. We'd like to thank everyone for listening to today's call and look forward to speaking with you when we report our third quarter fiscal 2023 results in September. Thank you.

謝謝你，卡米拉。我們要感謝大家收聽今天的電話會議，並期待在 9 月份報告 2023 財年第三季度業績時與大家交談。謝謝。

Thank you. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。