Beacon Roofing Supply Inc (BECN) 2023 Q2 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Beacon Second Quarter 2023 Earnings Call. My name is Sam, and I will be your coordinator for today. (Operator Instructions)

女士們、先生們，下午好，歡迎參加 Beacon 2023 年第二季財報電話會議。我叫 Sam，我將擔任你們今天的協調員。 （操作員說明）

As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the call over to Mr. Binit Sanghvi, Vice President, Capital Markets and Treasurer. Please proceed, Mr. Sanghvi.

謹此提醒，本次電話會議正在錄音以供重播之用。我現在想將電話轉給資本市場副總裁兼財務主管 Binit Sanghvi 先生。請繼續，桑維先生。

Thank you, Sam. Good afternoon, everybody, and thank you for taking the time to join us on our call today. Julian Francis, Beacon's Chief Executive Officer; and Frank Lonegro, our Chief Financial Officer, will begin with prepared remarks that will follow the slide deck posted to the Investor Relations section of Beacon's website. After that, we will open the call for questions.

謝謝你，山姆。大家下午好，感謝您今天抽空參加我們的電話會議。朱利安·弗朗西斯 (Julian Francis)，Beacon 執行長；我們的財務長 Frank Lonegro 將首先發表準備好的講話，這些講話將遵循 Beacon 網站投資者關係部分發布的幻燈片。之後，我們將開放提問。

Before we begin, please reference Slide 2 for a couple of brief reminders. First, this call will contain forward-looking statements about the company's plans and objectives and future performance. Forward-looking statements can be identified because they do not relate strictly to historical or current facts and use words such as anticipate, estimate, expect, believe and other words of similar meaning. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including, but not limited to, those set forth in the Risk Factors section of the company's 2022 Form 10-K.

在開始之前，請參考投影片 2 以獲取一些簡短的提醒。首先，本次電話會議將包含有關公司計劃、目標以及未來業績的前瞻性陳述。前瞻性陳述可以被識別，因為它們與歷史或當前事實並不嚴格相關，並且使用諸如預期、估計、期望、相信和其他類似含義的詞語。由於各種重要因素，包括但不限於公司 2022 年表格 10-K 的風險因素部分中列出的因素，實際結果可能與此類前瞻性陳述所示的結果有重大差異。

Second, the forward-looking statements contained in this call are based on information as of today, August 3, 2023. And except as required by law, the company undertakes no obligation to update or revise any of these forward-looking statements. And finally, this call will contain references to certain non-GAAP measures. The reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in today's press release and the appendix of the presentation accompanying this call. Both the press release and the presentation are available on our website at becn.com. Now let's begin with opening remarks from Julian.

其次，本次電話會議中包含的前瞻性陳述是基於截至今天（2023 年 8 月 3 日）的資訊。除非法律要求，否則本公司不承擔更新或修改任何這些前瞻性陳述的義務。最後，本次電話會議將包含對某些非公認會計原則措施的引用。這些非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調整在今天的新聞稿和本次電話會議隨附的簡報附錄中進行了闡述。新聞稿和簡報均可在我們的網站 becn.com 上取得。現在讓我們從朱利安的開場白開始。

Thanks, Binit. Good afternoon, everyone. I'm pleased to say that we delivered another good quarter with strong execution on key initiatives and disciplined cost management. Before I begin our review of the quarter, let me remind you of the assumptions that underpin our prior outlook. We said that the overall residential market will be down mid- to high single digits with (technical difficulty) down double digits and replacement activity down mid-single on lower existing home sales. We said storm demand would be a tailwind on a return to the 10-year average, significantly above prior year. And we expect that the nonresidential end market would be about flat, but volumes would be affected in the first half by contracted destocking, and we expected price stability.

謝謝，比尼特。大家下午好。我很高興地說，我們透過對關鍵措施的強大執行和嚴格的成本管理，再次實現了良好的季度業績。在開始回顧本季之前，讓我提醒您支持我們先前展望的假設。我們表示，由於現有房屋銷售下降，整體住宅市場將下降中個位數至高個位數，（技術難度）下降兩位數，更換活動將下降中個位數。我們表示，風暴需求將成為恢復 10 年平均的推動力，顯著高於去年。我們預期非住宅終端市場將基本持平，但上半年銷售將受到合約去庫存的影響，我們預期價格穩定。

In the first half of the year, end market demand has largely performed as we outlined, with the residential market slightly exceeding our expectations on stronger-than-expected storm demand. And while we believe the nonresidential end market is broadly flat, excess contractor inventory was significantly higher than anticipated, which created first half headwinds that we believe are now largely but not completely behind us.

上半年，終端市場需求基本上符合我們的預期，其中住宅市場略超出我們的預期，風暴需求強於預期。儘管我們認為非住宅終端市場基本上持平，但過剩的承包商庫存明顯高於預期，這造成了上半年的不利因素，我們認為這些不利因素現在已基本但尚未完全過去。

Against this backdrop, we continue to focus on the areas within our control and our team's strong execution on our Ambition 2025 initiatives resulted in record second quarter net sales. Average selling prices were up low single digits year-over-year and combined with contributions from greenfields and acquisitions drove net sales more than 6% higher year-over-year. We once again delivered double-digit adjusted EBITDA margins in the second quarter through a combination of disciplined market execution and productivity gains, and we generate substantial cash flow in the quarter.

在此背景下，我們繼續專注於我們控制範圍內的領域，我們的團隊對 2025 年雄心計劃的強有力執行導致第二季度淨銷售額創紀錄。平均售價較去年小幅上漲，加上新建案和收購的貢獻，推動淨銷售額年增 6% 以上。透過嚴格的市場執行和生產力的提高，我們在第二季度再次實現了兩位數的調整後 EBITDA 利潤率，並在本季度產生了大量現金流。

Having the right products in the right place, in the right quantity to meet customer needs is a core competence. At the same time, balancing inventory to local demand conditions is critical to ensure we manage working capital and create value for our shareholders. As we saw market conditions changed in the middle of last year, we began to proactively and methodically reduce inventory, unlocking substantial cash flow. We converted operating cash flow at over 100% of adjusted EBITDA in the trailing 12 months ended June 30, demonstrating the resiliency of our business model in changing market conditions.

在正確的地點、以正確的數量提供正確的產品來滿足客戶的需求是一項核心競爭力。同時，根據當地需求條件平衡庫存對於確保我們管理營運資金並為股東創造價值至關重要。去年年中，我們看到市場狀況發生了變化，我們開始主動、有步驟地減少庫存，釋放大量現金流。截至 6 月 30 日的過去 12 個月，我們的經營現金流量轉換率超過調整後 EBITDA 的 100%，證明了我們的業務模式在不斷變化的市場條件下的彈性。

We use that cash flow to create balance sheet capacity to reinvest in the business, conduct M&A and return capital to shareholders, which I will discuss in more detail on the following slide. As I said at the outset, I'm pleased with the team's execution in what turned out to be a pivotal few months for the company.

我們利用現金流來創建資產負債表能力，以對業務進行再投資、進行併購並向股東返還資本，我將在下一張幻燈片中更詳細地討論這些內容。正如我一開始所說的，我對團隊在公司關鍵幾個月的執行力感到滿意。

Now please turn to Page 5 of the deck. As you are aware, 18 months ago, we laid out our medium-range targets to drive above-market growth, deliver double-digit adjusted EBITDA margins, build a great organization and generate superior shareholder returns. We can only do this if we deliver a great value proposition to our customers, and our teams are doing that every day.

現在請翻到該牌組的第 5 頁。如您所知，18 個月前，我們制定了中期目標，以推動高於市場的成長、實現兩位數的調整後 EBITDA 利潤率、建立優秀的組織並產生卓越的股東回報。只有向客戶提供巨大的價值主張，我們才能做到這一點，而我們的團隊每天都在這樣做。

So let me provide you with an update on our strategic initiatives, which will give you a better idea of how we are accomplishing these goals. And let me start by highlighting how we are building a winning culture. In May, we released our second annual Corporate Social Responsibility report, consistent with our values and our commitment to transparency and continuous improvement. We reported early progress on our goal to reduce Scope 1 and Scope 2 GHG emissions intensity 50% by 2030 relative to our base year of 2020. We are focusing on our fleet and facilities to improve fuel efficiency and reduce energy consumption. And I'm pleased to share that we reduced our emissions intensity by 5.7% in 2022 relative to the 2020 base.

因此，讓我向您提供有關我們戰略舉措的最新信息，這將使您更好地了解我們如何實現這些目標。首先讓我強調我們如何建構致勝文化。五月，我們發布了第二份年度企業社會責任報告，該報告符合我們的價值觀以及我們對透明度和持續改進的承諾。我們報告了 2030 年相對 2020 年基準年將範圍 1 和範圍 2 溫室氣體排放強度降低 50% 的目標的早期進展。我們正在重點關注我們的機隊和設施，以提高燃油效率並減少能源消耗。我很高興地告訴大家，2022 年我們的排放強度相對於 2020 年降低了 5.7%。

We also announced an employee stock purchase program, so our employees can be further invested in the success of the company they work for every day. This benefit allows team members to buy our shares at a discount and is available to all employees, including drivers, branch personnel, sales and functional roles. We are aligning the entire company to our mission and to creating shareholder value. In fact, more than 20% of our employees, including more than 10% of our frontline workforce enrolled in the inaugural period and are taking advantage of this opportunity. I'm particularly pleased that hundreds of our drivers, warehouse team and inside sales organization are participating, a real commitment to our company and to their teammates.

我們還宣布了一項員工股票購買計劃，以便我們的員工可以進一步投資於他們每天工作的公司的成功。這項福利允許團隊成員以折扣價購買我們的股票，並且適用於所有員工，包括司機、分公司人員、銷售和職能角色。我們正在讓整個公司致力於我們的使命並創造股東價值。事實上，我們有超過 20% 的員工，包括超過 10% 的第一線員工，在成立期間就註冊了，並且正在利用這個機會。我特別高興的是，我們的數百名司機、倉庫團隊和內部銷售組織都參與其中，這是對我們公司及其隊友的真正承諾。

Next, we are driving growth above market and enhancing market margins through a set of targeted initiatives. Our digital capability continues to be a clear competitive differentiator for Beacon, and sales through our online platform deliver approximately 150 basis points better margin compared to offline channels. We provide the most complete digital offering in the industry and continue to expand our capabilities to serve customers in the way that brings them the most value.

接下來，我們將透過一系列有針對性的措施推動高於市場的成長並提高市場利潤。我們的數位能力仍然是 Beacon 的明顯競爭優勢，與線下通路相比，透過我們的線上平台進行銷售的利潤率高出約 150 個基點。我們提供業界最完整的數位產品，並不斷擴展我們的能力，為客戶提供最大價值的服務。

Our most recent digital integration with Acculynk, a leading provider of all-in-one business management software for roofing contractors, drove an impressive 28% year-over-year increase in digital sales in the second quarter and the highest percentage of residential sales ever at 21%. We intend to build upon our leadership by continuing to invest in this capability.

我們最近與 Acculynk（一家為屋頂承包商提供一體式業務管理軟體的領先供應商）進行的數位集成，推動第二季數位銷售年增 28%，創下有史以來最高的住宅銷售百分比為 21%。我們打算透過繼續投資於此能力來鞏固我們的領導地位。

Last quarter, we highlighted the rollout of our customer experience or as we call it our CX initiative, engaging with our customers during their most important moments and leveraging our strategic advantages to solve their most pressing needs is one of the pillars of our competitive differentiation. We continue to roll out these best practices to 6 new markets in the second quarter. I'm happy to report that one of our key metrics of customer satisfaction, average on-time delivery percentage is showing a meaningful increase in CX markets, sustainably improving our reliability relative to our past and to our competitors.

上個季度，我們強調了客戶體驗的推出，或者我們稱之為客戶體驗計劃，在客戶最重要的時刻與他們互動，並利用我們的策略優勢解決他們最緊迫的需求，這是我們競爭差異化的支柱之一。我們將在第二季繼續向 6 個新市場推廣這些最佳實踐。我很高興地向大家報告，我們的客戶滿意度關鍵指標之一——平均準時交付率——顯示出 CX 市場的顯著增長，相對於過去和競爭對手，我們的可靠性持續提高。

We are also seeing tangible improvements in other key metrics, including sales growth and customer wallet share. Customers have told us they are willing to reward a better service experience, and we are building our capabilities, leveraging our competitive advantages of scale and our network model. Expanding our customer reach is also a major lever in our growth plans, which include investments in greenfields and acquisitions. Our dedicated greenfield team is executing on a robust pipeline. We added 14 greenfields through the second quarter, improving efficiency and further enhancing customer service.

我們也看到其他關鍵指標的顯著改善，包括銷售成長和客戶錢包份額。客戶告訴我們，他們願意獎勵更好的服務體驗，我們正在利用我們的規模和網路模式的競爭優勢來建立我們的能力。擴大我們的客戶範圍也是我們成長計畫的一個主要槓桿，其中包括綠地投資和收購。我們的專業綠地團隊正在強大的管道上執行任務。我們在第二季新增了 14 個新建項目，提高了效率並進一步增強了客戶服務。

For reference, we have now opened 31 new branches since the beginning of last year, well on pace to exceed our Ambition 2025 goal. On acquisitions, we completed the purchase of Silver State Building Materials during the second quarter, providing access to the market in Reno and Lake Tahoe. In total, we have acquired 9 companies, adding 30 branches since announcing our Ambition 2025 plan, expanding our opportunity in markets across the country.

作為參考，自去年年初以來，我們現已開設 31 家新分行，預計將超越我們的 2025 年雄心目標。在收購方面，我們在第二季完成了對 Silver State Building Materials 的收購，為進入裡諾和太浩湖市場提供了機會。自從宣布「2025 年雄心」計畫以來，我們總共收購了 9 家公司，增加了 30 家分支機構，擴大了我們在全國市場的機會。

Now those of you who've listened to our calls know that we have discussed our efforts to drive operational excellence through our continuous improvement initiatives. Our OTC network leverages the density of our branch network in larger MSAs. Currently, we operate in 57 markets with nearly 280 branches participating where our teams work together to deliver on our service model to address our customers' needs. Key to achieving these improvements is our routing software, Beacon Track, enhancing the speed and reliability of our network and providing delivery tracking capabilities for our customers. In addition, we leveraged logistic capabilities across our network of branches to reduce delivery time and mileage, improve labor productivity and reduce fleet costs and emissions.

現在，那些聽過我們電話的人都知道，我們已經討論了透過持續改善措施推動卓越營運的努力。我們的 OTC 網路利用了大型 MSA 中分支機構網路的密度。目前，我們在 57 個市場開展業務，有近 280 個分支機構參與其中，我們的團隊共同努力提供我們的服務模式，以滿足客戶的需求。實現這些改進的關鍵是我們的路由軟體 Beacon Track，它提高了我們網路的速度和可靠性，並為我們的客戶提供了交付追蹤功能。此外，我們利用分公司網路的物流能力來減少交貨時間和里程，提高勞動生產力並降低車隊成本和排放。

We continue to execute on the strategic branch optimization initiative that we highlighted at our Investor Day and are developing a comprehensive standard methodology. We utilize value stream mapping for truck and order flows leading to optimized processes and branch layout, which increases productivity and reduces wait times. The benefits are tangible, improving throughput, capacity and sales per hour worked.

我們繼續執行我們在投資者日強調的策略性分支機構優化計劃，並正在開發全面的標準方法。我們利用卡車和訂單流的價值流圖來優化流程和分支機構佈局，從而提高生產力並減少等待時間。好處是顯而易見的，提高了吞吐量、產能和每小時的銷售額。

And finally, I will talk about how we are creating shareholder value and give you some details on the transaction completed last week to repurchase the entirety of the outstanding preferred shares owned by CD&R. We knew that the opportunity would eventually present itself and have been preparing for it by restoring our balance sheet flexibility and maintaining strong liquidity. We recently saw the opportunity to reach out to our largest shareholder, and we're able to reach an agreement in early July to redeem the shares for just over $800 million, retiring the equivalent of 9.7 million common shares. In addition, we continue to execute on our current authorization to repurchase our common stock. Year-to-date through July 31, we repurchased approximately $100 million or approximately 1.5 million shares.

最後，我將討論我們如何創造股東價值，並向您提供上週完成的回購 CD&R 擁有的全部已發行優先股交易的一些詳細資訊。我們知道機會最終會出現，並一直在透過恢復資產負債表靈活性和保持強勁的流動性來做好準備。最近，我們看到了與最大股東接觸的機會，並在 7 月初達成協議，以略高於 8 億美元的價格贖回股票，贖回相當於 970 萬股普通股。此外，我們繼續執行目前的授權回購普通股。年初至今，截至 7 月 31 日，我們回購了約 1 億美元或約 150 萬股股票。

Many of you will recall that we first announced our share repurchase program in February of 2021 as part of our Ambition 2025 plan. I'm very pleased to report that we have since deployed $1.3 billion to repurchase approximately 21% of the shares on an as-converted basis, while maintaining net debt leverage within our stated target range. As a result of this significant return of capital, we have announced that we do not expect additional repurchases during the rest of the year under the remaining authorization. We remain confident that we have multiple paths to growth and margin expansion through the cycle. We have a differentiated approach and have built the tools needed to achieve our Ambition 2025 targets.

許多人可能還記得，我們​​在 2021 年 2 月首次宣布了股票回購計劃，作為我們 2025 年雄心壯志計劃的一部分。我很高興地向大家報告，此後我們已部署 13 億美元，以轉換後的基礎上回購約 21% 的股份，同時將淨債務槓桿率維持在我們規定的目標範圍內。由於這項重大資本回報，我們宣布預計在今年剩餘時間內不會根據剩餘授權進行額外回購。我們仍然相信，在整個週期中，我們有多種成長和利潤擴張的途徑。我們採用差異化方法，並建構了實現 2025 年雄心目標所需的工具。

Now I'll pass the call over to Frank to provide a deeper focus on our second quarter results.

現在我將把電話轉給弗蘭克，以更深入地關注我們第二季的業績。

Thanks, Julian, and good evening, everyone. Turning to Slide 7. We achieved more than $2.5 billion in total net sales in the second quarter, up a little more than 6% year-over-year, driven by the combined impact of acquisitions and higher average selling prices for our products. In the aggregate, price contributed approximately 2% to 3% to revenue growth, while organic volumes per day were flat to down 1%. Acquisitions, including coastal construction products are performing well and contributed approximately 4% to daily net sales year-over-year.

謝謝朱利安，大家晚上好。轉向幻燈片 7。在收購和產品平均售價上漲的綜合影響下，我們第二季度的總淨銷售額超過 25 億美元，同比增長略高於 6%。整體而言，價格對營收成長的貢獻約為 2% 至 3%，而每日有機銷量則持平或下降 1%。包括沿海建築產品在內的收購表現良好，年比貢獻了約 4% 的每日淨銷售額。

Our backlog continued to convert in the quarter as we entered the heart of the selling season, and while lower sequentially, remains well above historical levels. Residential roofing sales per day were higher by 8.5%. Higher year-over-year volume growth in the mid-single-digit range, combined with higher prices in the low single-digit range, drove the year-over-year revenue performance. Resi volumes came in better than expected versus a very strong shingle comparable in the prior year quarter. While industry volumes were higher, it is important to keep in mind that ARMA shipments were aided by distributor restocking during the quarter. With that in mind, we estimate that we grew at least in line with the market.

隨著我們進入銷售季節的中心，我們的積壓訂單在本季度繼續發生變化，雖然環比下降，但仍遠高於歷史水平。住宅屋頂日銷量成長 8.5%。中個位數範圍內較高的年比銷量成長，加上低個位數範圍內的較高價格，推動了年收入表現。與去年同期非常強勁的木瓦相比，Resi 銷售量優於預期。雖然行業銷量較高，但重要的是要記住，ARMA 出貨量得益於本季經銷商補貨。考慮到這一點，我們估計我們的成長至少與市場一致。

As Julian mentioned previously, resi R&R demand bolstered by higher storm demand in the first half was stronger than our planning assumptions and more than offset new construction decline year-over-year. Nonresidential roofing sales declined by less than 2% on a per day basis, driven by lower shipments as the expected destocking by our customers continued through the quarter. Higher prices in the mid-single digits year-over-year partially offset the lower volumes. Complementary sales per day increased nearly 12% year-over-year as the acquisition of Coastal drove higher sales of our waterproofing products year-over-year. Higher selling products -- excuse me, higher selling prices across all of our complementary product lines with the exception of lumber, also contributed to the growth. As a reminder, with the addition of Coastal, our complementary product category now has approximately 70% residential and 30% nonresidential exposure.

正如 Julian 之前提到的，上半年風暴需求增加推動的 Resi R&R 需求強於我們的規劃假設，並且遠遠抵消了新建築同比下降的影響。非住宅屋頂銷售額日均下降不到 2%，因為我們的客戶預計本季將持續減少庫存，導致出貨量下降。中個位數的價格同比上漲部分抵消了銷量的下降。由於收購 Coastal 推動我們的防水產品銷售年增，每日補充銷售額年增近 12%。更高的銷售產品－對不起，我們所有互補產品線（木材除外）的更高銷售價格也促進了成長。提醒一下，隨著 Coastal 的加入，我們的補充產品類別現在大約有 70% 的住宅和 30% 的非住宅曝險。

Turning to Slide 8. We'll review gross margin and operating expense. Gross margin was 25.4% in the second quarter, down more than 200 basis points year-over-year, given we are cycling the significant inventory profits generated in the year ago quarter. That said, our gross margin performance in the quarter remains well above historical Q2 gross margin levels. While we were then guidance range we discussed in May, we ended up at the lower end of that range due to slower realization of the May shingle price increase, which largely matched the timing of the inflow of higher product costs. Therefore, we did not produce the level of inventory profits we were initially expecting.

轉向幻燈片 8。我們將審查毛利率和營運費用。鑑於我們正在循環利用上年同期產生的大量庫存利潤，第二季度毛利率為 25.4%，年減 200 多個基點。也就是說，我們本季的毛利率表現仍遠高於第二季的歷史毛利率水準。雖然我們當時的指導範圍是我們在5 月份討論的，但由於5 月份木瓦價格上漲的實現速度較慢，我們最終處於該範圍的下限，這在很大程度上與更高的產品成本流入的時間相匹配。因此，我們沒有達到我們最初預期的庫存利潤水準。

On a year-over-year basis, price/cost was unfavorable by approximately 230 basis points as higher average selling prices were more than offset by higher product costs year-over-year. You will recall that we have broad-based inflation across our products in the year ago period, including a sizable shingle price increase in April of 2022, which led to significant inventory profits and a high watermark for gross margin in Q2 of 2022.

與去年同期相比，價格/成本不利約 230 個基點，因為較高的平均售價被同比較高的產品成本所抵銷。您可能還記得，去年同期我們的產品出現了廣泛的通貨膨脹，包括 2022 年 4 月木瓦價格大幅上漲，這導致了 2022 年第二季度的庫存利潤可觀，毛利率也達到了高水位。

Adjusted OpEx was $378 million, an increase of $8 million compared to the year ago quarter. Adjusted OpEx as a percentage of sales decreased to 15.1% or 60 basis points of leverage improvement versus the prior year quarter. The year-over-year change in adjusted OpEx was driven primarily by expenses associated with acquired and greenfield branches. Together, these new branches accounted for approximately $24 million of the year-over-year increase. Inflationary pressures in wages and benefits as well as lease-related rents, real estate taxes, utilities and maintenance costs also contributed to the increase. These combined increases were partially offset by lower incentive compensation accruals and decreases in selling expenses, largely fuel related.

調整後營運支出為 3.78 億美元，比去年同期增加 800 萬美元。調整後營運支出佔銷售額的百分比下降至 15.1%，與去年同期相比，槓桿率改善了 60 個基點。調整後營運支出的年比變化主要是由與收購和新建分行相關的費用所驅動的。這些新分公司合計貢獻了約 2,400 萬美元的年增率。工資和福利以及與租賃相關的租金、房地產稅、公用事業和維護成本的通膨壓力也導致了這一增長。這些綜合成長被應計激勵薪酬的減少和主要與燃料相關的銷售費用的減少所部分抵消。

Given the continued tightness in the labor markets, we made an effort to ensure that we were properly staffed to meet the ramp in seasonal activity and provide the high level of service our customers expect. At the same time, our focus on branch productivity remains a priority, and we were able to drive productivity and operating leverage in the second quarter. As you can see, our sales per hour metric reached its highest level indexed back to the first quarter of 2020. And notably, our operating expense to sales ratio reached its lowest level in 10 years, a testament to our team's focus on driving growth and delivering operating efficiency. While we remain watchful of changing market conditions, we are continuing to invest in initiatives through the cycle to drive above-market growth and margin enhancement as part of Ambition 2025. These ambition 2025 investments totaled approximately $6 million within the operating expense line in the second quarter.

鑑於勞動力市場持續緊張，我們努力確保配備適當的人員，以滿足季節性活動的增加，並提供客戶期望的高水準服務。同時，我們對分支機構生產力的關注仍然是我們的首要任務，我們能夠在第二季度提高生產力和營運槓桿。正如您所看到的，我們的每小時銷售額指標達到了自2020 年第一季以來的最高水平。值得注意的是，我們的營運費用與銷售額之比達到了10 年來的最低水平，這證明了我們團隊致力於推動成長和提供營運效率。 While we remain watchful of changing market conditions, we are continuing to invest in initiatives through the cycle to drive above-market growth and margin enhancement as part of Ambition 2025. These ambition 2025 investments totaled approximately $6 million within the operating expense line in the second四分之一.

Turning to Slide 9. Operating cash flow was impressive for the second quarter at $257 million as we continue to benefit from the inventory rightsizing we started mid last year. As you can see on the charts, we experienced the normal seasonal ramp in inventory between the first and second quarters. However, on a year-over-year basis, second quarter net inventory was lower by nearly $200 million, even with the combined impact of higher product costs year-over-year, inventory acquired through M&A and new inventory to support our greenfield branches.

轉向幻燈片 9。第二季度的營運現金流令人印象深刻，達到 2.57 億美元，我們繼續受益於去年年中開始的庫存調整。正如您在圖表中看到的，我們在第一季和第二季之間經歷了庫存的正常季節性成長。然而，與去年同期相比，第二季度淨庫存減少了近 2 億美元，儘管產品成本同比上漲、透過併購獲得的庫存以及支持我們新建分支機構的新庫存的綜合影響。

It is also worth noting that we have generated nearly $950 million in operating cash flow over the last 4 quarters, a conversion rate of over 100% compared to adjusted EBITDA. We expect strong cash generation in the second half of the year weighted toward the fourth quarter, given the inventory build in late Q2 and early Q3 to support the stronger selling season.

另外值得注意的是，我們在過去 4 個季度產生了近 9.5 億美元的營運現金流，與調整後 EBITDA 相比，轉換率超過 100%。鑑於第二季末和第三季初的庫存增加支持了更強勁的銷售季節，我們預計下半年現金產生將強勁，並影響到第四季。

While Julian previously covered the share repurchase program, let me give you some additional details that may be helpful. Share repurchases in the second quarter were made through a Rule 10b5-1 plan and resulted in the retirement of approximately 800,000 shares during the second quarter. Net of share issuances for stock-based compensation, we reduced our common shares outstanding to $63.4 million on June 30 versus $64.2 million at December 31. The 10b5-1 plan terminated on July 31 with approximately $25 million of share repurchases during July. And as we have mentioned several times, we do not expect any further share repurchases for the remainder of the year.

雖然朱利安之前介紹過股票回購計劃，但讓我給您一些可能有用的其他詳細資訊。第二季的股票回購是透過規則 10b5-1 計劃進行的，導致第二季大約回購了 800,000 股股票。扣除基於股票補償的股票發行後，我們於6 月30 日將流通普通股減少至6,340 萬美元，而12 月31 日為6,420 萬美元。10b5-1 計劃於7 月31 日終止，7 月份回購了約2,500 萬美元的股票。正如我們多次提到的，我們預計今年剩餘時間內不會進行任何進一步的股票回購。

Net debt leverage at the end of the second quarter was 1.9x trailing 12 months adjusted EBITDA or slightly below the low end of the 2x to 3x target range and approximately 2.8x after giving pro forma effect to the preferred repurchase transaction. We remain well positioned to continue to invest in greenfields and acquisitions as well as upgrading our fleet and facilities to support our customers and employees. We are also investing in the processes and technologies that will lay the groundwork for improved service, future growth and branch productivity. We remain confident in our ability to successfully leverage an improving residential backdrop and continue to capitalize on growth opportunities in the second half of the year.

第二季末的淨負債槓桿率為過去 12 個月調整後 EBITDA 的 1.9 倍，略低於 2 倍至 3 倍目標範圍的低端，在對優先回購交易給予預期影響後約為 2.8 倍。我們仍然處於有利位置，可以繼續投資綠地和收購，以及升級我們的機隊和設施，以支持我們的客戶和員工。我們也投資於流程和技術，為改善服務、未來成長和分支機構生產力奠定基礎。我們對成功利用不斷改善的住宅環境並繼續利用下半年的成長機會的能力充滿信心。

With that, I'll turn the call back to Julian for his closing remarks.

接下來，我將把電話轉回給朱利安，讓他作結語。

Thanks, Frank. Please reference Page 11 of the slide materials. Before we head to Q&A, I'd like to update you on our outlook for the remainder of 2023. We expect the momentum we experienced in the first half and outlined at the beginning of this call to continue into the third quarter. Nondiscretionary R&R demand is expected to continue to improve, including carryover from the storm activity we have experienced in the first half of the year. Residential homebuilder demand is expected to be stronger in the second half year-over-year as builder sentiment has improved. And nonresidential bidding and quoting activity and backlog is expected to remain healthy, with cycle times continue to extend. And while we believe contracted destocking is largely over, some pockets of excess inventory remain, and we do expect the market opportunity to be lower year-on-year on a tough comparable.

謝謝，弗蘭克。請參考投影片資料第 11 頁。在進行問答之前，我想向您介紹我們對 2023 年剩餘時間的展望。我們預計上半年所經歷的以及本次電話會議開頭概述的勢頭將持續到第三季度。非自由裁量的 R&R 需求預計將繼續改善，包括我們上半年經歷的風暴活動帶來的影響。隨著建商信心的改善，預計下半年住宅建築商的需求將比去年同期更加強勁。非住宅招標和報價活動以及積壓預計將保持健康，週期時間繼續延長。雖然我們認為合約去庫存已基本結束，但一些過剩庫存仍然存在，而且我們確實預計，在嚴格的可比性中，市場機會將同比下降。

For the third quarter, we expect sales per day growth to be approximately 7% to 9% year-over-year and slightly better than the July pacing of approximately 7%. Keep in mind that the third quarter of 2022 as a strong comparable, in which we reported net sales growth of approximately 29%. We have announced a shingle price increase effective next week, corresponding to the manufacturer's announcements. Our team will execute with discipline and rigor as we have in the past. Given the market developments that we are seeing through July, we expect that realization will be better than the May price increase and will result in sequential margin improvement.

對於第三季度，我們預計每日銷售額將年增約 7% 至 9%，略好於 7 月約 7% 的成長速度。請記住，2022 年第三季是一個強勁的可比季度，我們報告的淨銷售額成長約為 29%。我們已宣布，根據製造商的公告，木瓦價格上漲將於下週生效。我們的團隊將像過去一樣嚴格執行。鑑於我們看到 7 月的市場發展，我們預計實現情況將優於 5 月的價格上漲，並將導致利潤率季比改善。

We expect gross margin to be in the mid- to high 25% range, and keep in mind that the prior year quarter had significant inventory profits. We are also increasing our full year guidance. We now expect net sales growth to be in the 4% to 6% range versus 2% to 4% previously announced. This includes contributions from acquisitions previously announced. Regarding gross margin, we continue to expect inventory profit roll off on a year-over-year basis, partially offset by our improvement initiatives, including higher private label and digital sales. Adjusted EBITDA is expected to be between $850 million and $890 million for the full year 2023, an increase compared to our guidance announced at our pre-release on July 7.

我們預計毛利率將在 25% 的中高範圍內，並記住去年同期的庫存利潤可觀。我們還增加了全年指導。我們現在預計淨銷售額成長將在 4% 至 6% 範圍內，而先前宣布的為 2% 至 4%。這包括先前宣布的收購的貢獻。就毛利率而言，我們繼續預期庫存利潤將同比下降，部分被我們的改進舉措所抵消，包括更高的自有品牌和數位銷售。 2023 年全年調整後 EBITDA 預計將在 8.5 億至 8.9 億美元之間，比我們 7 月 7 日預發佈時宣布的指導有所增加。

As always, our focus will continue to be on the areas within our control, including safety, customer experience, labor productivity and pricing execution. We will continue to deploy capital on initiatives that we expect will result in accelerated growth, including executing on our robust pipeline of acquisitions and delivering on our greenfield locations, which we now expect to result in more than 20 to 25 branches in 2023. We are investing in improving our operations, delivering results today and investing to generate growth tomorrow.

一如既往，我們的重點將繼續放在我們控制範圍內的領域，包括安全性、客戶體驗、勞動生產力和定價執行。我們將繼續將資本部署在我們預計將帶來加速成長的舉措上，包括執行我們強大的收購管道和交付我們的綠地地點，我們現在預計將在 2023 年建立超過 20 至 25 個分支機構。投資於改善我們的運營，今天取得成果，並投資於明天的成長。

In summary, we're well positioned to continue to outperform the market in this dynamic demand environment, creating value for all our stakeholders. We're looking forward to the rest of 2023 and helping our customers to build more.

總之，我們處於有利位置，可以在這種動態的需求環境中繼續跑贏市場，為所有利害關係人創造價值。我們期待 2023 年剩下的時間，並幫助我們的客戶建立更多。

And with that, we'll open it up for questions.

接下來，我們將開放提問。

(Operator Instructions)

（操作員說明）

Our first question is from Garik Shmois from Loop Capital.

我們的第一個問題來自 Loop Capital 的 Garik Shmois。

I was hoping you could speak to the drivers of the new guidance range, and we have narrowed the range about 3 weeks ago, now you're raising it. I'm just wondering if you can itemize some of the drivers? Is it just assuming the August price increase, is there some volume in there? Just any additional detail would be great.

我希望您能與新指導範圍的駕駛者交談，大約三週前我們已經縮小了範圍，現在您正在提高它。我只是想知道您是否可以逐項列出一些驅動程式？是否只是假設八月價格上漲，那裡有一些成交量嗎？只要有任何額外的細節就太好了。

Thanks, Garik. Yes. I mean, as we said on our pre-release on July 7, we hadn't done the analytics yet in terms of where we were and we weren't really closed on the June numbers. So we've been able to do additional analytics on this. And obviously, we're raising it somewhat. We broadened it out. We certainly broadened the top line at the top of the range out as well, and I'll let Frank give you some specific details. But we continue to see a productive marketplace ahead of us, and we think we're executing well. And as we said in our prepared remarks, we do think that the environment is more conducive to a solid price increase and execution this time.

謝謝，加里克。是的。我的意思是，正如我們在 7 月 7 日的預發布中所說，我們還沒有對我們所處的位置進行分析，而且我們還沒有真正了解 6 月份的數據。所以我們能夠對此進行額外的分析。顯然，我們正在稍微提高它。我們擴大了範圍。我們當然也擴大了該系列頂部的頂線，我將讓弗蘭克為您提供一些具體細節。但我們仍然看到前方有一個富有成效的市場，而且我們認為我們執行得很好。正如我們在準備好的發言中所說，我們確實認為這次環境更有利於穩定的價格上漲和執行。

Garik, as I think I've mentioned, we really weren't able to engage the full complement of the team, both in the headquarters environment, in the field environment while we were getting ready for the preferred transaction in the pre-release. So that's why we put the qualifiers in the pre-release, I wanted to make sure people knew that we were going to come out with a more refined range. I would say the conversations that we have had internally around the resi backdrop. And obviously, that translates into better resi volumes in the second half than maybe we were anticipating as well as the August price increase. I'd say those are the 2 big things.

Garik，正如我想我已經提到的，當我們為預發布中的首選交易做準備時，我們確實無法在總部環境和現場環境中讓團隊的全部人員參與進來。這就是為什麼我們將預選賽放在預發布中，我想確保人們知道我們將推出更精緻的系列。我想說的是我們內部圍繞著 Resi 背景的對話。顯然，這意味著下半年的黃金產量可能比我們預期的更好，而且 8 月的價格上漲也是如此。我想說這是兩件大事。

I'll tell you, we also did a really nice job in the second quarter on OpEx leverage, and I would expect that to continue to be helpful for us as we go forward. But I think it really comes down to the June close to July. We obviously got another couple of weeks under our belt on July after the pre-release, and that looked good, and then you forecast all of that forward and you get a little bit of lift. So we're excited about the second half.

我會告訴你，我們第二季在營運支出槓桿方面也做得非常好，我希望這在我們前進的過程中繼續對我們有幫助。但我認為這確實要歸結為六月和七月附近。顯然，在預發布後的 7 月份，我們又花了幾週的時間，看起來不錯，然後你預測了所有這些，你就會得到一點提升。所以我們對下半場感到興奮。

Our next question comes from Joe Ahlersmeyer from Deutsche Bank.

我們的下一個問題來自德意志銀行的 Joe Ahlersmeyer。

I wanted to talk about the comments around the lack of inventory profits in the second quarter and then just the expectation that with better realization in 3Q, you would perhaps see sequential margin expansion. Is it right to assume that in addition to sort of lapping the comp from the prior year inventory profit, there's also a consideration around faster terms of inventory that maybe would mute that sequential increase?

我想談談關於第二季度庫存利潤不足的評論，然後只是期望隨著第三季度更好的實現，你可能會看到連續的利潤率擴張。是否可以假設，除了從上一年的庫存利潤中獲得補償之外，還需要考慮更快的庫存期限，這可能會抑制連續成長？

Yes. So let me go back and talk about the May increase and then sort of a forward view. If you remember the manufacturers came in and announced and we followed on with our announcements for mid-May. I would say at that time, the market was probably still a little bit uncertain about the direction. We had obviously seen some storms. But the way it got executed was that there were some price holds for some contractors and some builders that went beyond the mid-May increase. And so as we started taking price from the manufacturers, the market just wasn't realizing that.

是的。因此，讓我回過頭來談談五月的成長，然後談談未來的看法。如果您還記得製造商進來並宣布的話，我們將在五月中旬發布後續公告。我想說，當時市場的方向可能還是有點不確定。我們顯然看到了一些風暴。但執行的方式是，一些承包商和一些建築商的價格保持在 5 月中旬之後的水平。因此，當我們開始向製造商收取價格時，市場並沒有意識到這一點。

We did see sequential price improvement through the quarter, month-to-month. But the fact was that, that was sort of timed with the increases that we saw from the manufacturers working its way through our inventory. So when we originally came out with the guide, we expected to generate some inventory profits from the May increase, and it just didn't happen, mainly because of the price holds and we -- and how the timing of the price increase -- our price increase to our customers went through. So we really weren't able to generate anything from that.

我們確實看到整個季度、每個月的價格連續改善。但事實是，這與我們看到製造商透過我們的庫存進行的增加是同步的。因此，當我們最初發布該指南時，我們預計會從五月份的上漲中產生一些庫存利潤，但這並沒有發生，主要是因為價格保持不變，而且我們 - 以及價格上漲的時機 -我們對客戶的提價已經完成。所以我們確實無法從中產生任何東西。

Turning now to sort of the future look. I think that the demand environment is much stronger. I think we're more resolved around this increase in terms of what we believe we see in the marketplace, the demand environment that we see on the resi side of the business. The storm activity is sort of materialized and we're going to continue to see sort of back half demand improve. I think that there certainly is inside of the 4 walls of Beacon, a real determination around executing much better on this price increase than we did on the May increase.

現在轉向未來的樣子。我認為需求環境強大得多。我認為，我們對市場成長的決心更加堅定，我們在市場上看到了這一點，在業務的需求環境方面也看到了這一點。風暴活動已經成為現實，我們將繼續看到後半部的需求有所改善。我認為，在 Beacon 的 4 堵牆內部，確實有一個真正的決心，即在這次提價中執行得比我們在 5 月份的提價時執行得更好。

Joe, on the inventory point, obviously, we have less units in inventory this year relative to last year, given all of the destocking that you mentioned, we've actually built some inventory in June, would expect to build some more in July. So I see your point academically, I don't think it's going to be a huge driver of inventory profits on a year-over-year basis in Q3.

喬，就庫存而言，顯然，與去年相比，我們今年的庫存量有所減少，考慮到您提到的所有去庫存，我們實際上在6 月份建立了一些庫存，預計在7 月份會建立更多庫存。所以我從學術上理解你的觀點，我認為這不會成為第三季庫存利潤年比的巨大推動力。

Just one other maybe housekeeping item. I think I missed the price on the commercial, the nonres business in the quarter. And then just thinking about the quarter ahead, just any ideas on the mix between volume and price within your 7% to 9% daily sales guidance?

只是另一件也許是家事。我想我錯過了本季商業、非商業業務的價格。然後想想未來一個季度，在 7% 到 9% 的每日銷售指引範圍內，關於銷量和價格之間的組合有什麼想法嗎？

On the nonresi, you didn't miss anything because we didn't get it, but happy to provide some color there. In terms of the pricing in the quarter, think of it as being up mid-singles in Q2. And then ask me your next question again?

在nonresi上，你沒有因為我們沒有得到它而錯過任何東西，但很高興在那裡提供一些顏色。就本季的定價而言，可以將其視為第二季的中單價格上漲。然後再問我你的下一個問題？

Just the balance of volume versus price within your third quarter daily sales guidance?

只是第三季每日銷售指引中數量與價格的平衡嗎？

Yes. So there's that 7% to 9% in the daily. Let me break it down a little bit for you amongst line of businesses because there's some significant moving parts that you would miss if you ended up doing it on an average basis. On the resi side, you should think about sort of high single-digit volume and low single-digit price. These are year-over-year numbers, obviously. On the commercial side, volumes down high singles to low double digits with price up low to mid-singles year-over-year. And then on the complementary side, it's largely going to be coastal plus a little bit on the siding side, so I think on a revenue basis for complementary on low double digits.

是的。所以每天有 7% 到 9%。讓我為您在各行各業中進行一些分解，因為如果您最終按照平均水平進行操作，您可能會錯過一些重要的移動部分。在黃金方面，您應該考慮高個位數的交易量和低個位數的價格。顯然，這些是同比數字。在商業方面，高單曲銷量下降至低兩位數，而價格同比上漲至中單曲。然後在互補方面，主要是沿海地區，再加上一點邊線，所以我認為在收入基礎上互補是低兩位數的。

And our next question comes from Ketan Mamtora from BMO.

我們的下一個問題來自 BMO 的 Ketan Mamtora。

Congrats on a good quarter. I'm curious if you can talk a little bit about kind of region in this quarter and what you've seen so far inside. Are there any regions that are performing better than what you expected or kind of worse than you expected?

恭喜季度表現良好。我很好奇您是否可以談談本季的區域類型以及您迄今為止所看到的情況。是否有任何地區的表現比您的預期好或比您的預期差？

Yes, it is actually, there are some significant regional differences across the country. And actually, through the first half of the year, it shifted as well. So the -- as we expected, the storm-related markets are the ones that were the strongest through the first half of the year. You'll remember all of the weather that we saw in California at the start of the year, that actually was down in the first quarter because of all the rain and all the weather that was happening there, but was a strong rebound in the second quarter. So California was up substantially in the West Coast.

是的，實際上，全國範圍內存在一些顯著的地區差異。事實上，今年上半年，情況也改變了。因此，正如我們所預期的那樣，與風暴相關的市場是今年上半年最強勁的市場。 You'll remember all of the weather that we saw in California at the start of the year, that actually was down in the first quarter because of all the rain and all the weather that was happening there, but was a strong rebound in the second四分之一.因此，加州在西海岸的漲幅大幅上升。

Texas experienced some of that as well. We expected it down. A lot of new residential construction was impacting Texas in the first quarter. It changed in the second quarter. Storms impacted that. The Midwest had storm carryover from last year. So we saw that carry through. We saw that actually dissipate a little bit through the end of the second quarter. And then Florida had a lot of carryover from last year. Interestingly there, we saw some declines later in the second quarter in the Florida market as some of the new labor laws that came into effect and so had impact that sort of we saw bring it down.

德州也經歷過一些這樣的情況。我們預計它會下降。第一季度，大量新住宅建設對德州產生了影響。第二季情況發生了變化。風暴影響了這一點。中西部地區還殘留著去年的風暴。所以我們看到了這一點。我們看到這種情況在第二季末實際上有所消散。佛羅裡達州還有很多去年的遺留問題。有趣的是，我們看到第二季稍後佛羅裡達市場出現了一些下滑，因為一些新勞動法的生效，我們看到了這種影響，導致了市場的下滑。

There was some significant storms in Tennessee and Kentucky, we saw that as good. And then we saw a relatively, I'd say, stable and quiet in the Northeast. But having said all that, we also saw storms throughout the second quarter that impacted a pretty wide swath of the country. I wouldn't say there was any one particular storm that was very live, but we saw a number of decent sized storms really across the entire country that we believe is going to have impact through the rest of the year. So it's an interesting question, but it was really a mixed bag across when we saw markets change from first quarter to second quarter and as we're progressing through the year.

田納西州和肯塔基州發生了一些嚴重的風暴，我們認為這很好。然後我們看到東北地區相對穩定和安靜。但話雖如此，我們在第二季也看到了影響該國大部分地區的風暴。我不會說有任何一場特定的風暴非常活躍，但我們在整個國家看到了一些相當大的風暴，我們相信這些風暴將在今年剩餘時間內產生影響。所以這是一個有趣的問題，但當我們看到市場從第一季到第二季的變化以及我們在這一年的進展時，這確實是一個複雜的問題。

Ketan, the claims data, just if you look at that in the second quarter, the insurance claims data was up about 25% year-over-year, and that was a low comp last year as we said many times that 2022 was not a very good storm year for us, but certainly, the claims in Q2 were a nice lift.

Ketan，索賠數據，如果你看第二季度，保險索賠數據同比增長約 25%，去年的數據比較低，因為我們多次說過 2022 年不是一個好的一年。對我們來說是非常好的風暴年，但當然，第二季的索賠是一個很好的提升。

(Operator Instructions)

（操作員說明）

Our next question comes from Michael Rehaut from JPMorgan.

我們的下一個問題來自摩根大通的麥可雷豪特。

I was wondering if you guys could give any color on any potential material changes within supply chain in residential?

我想知道你們是否可以對住宅供應鏈中任何潛在的材料變化進行說明？

So you're breaking up there a little bit, but I think you said are we seeing any changes in the supply chain on the residential side? So the short answer to that would be, yes, a 48 million square ARMA shipment quarter would imply the manufacturers shipped not just all of the available production but also some of their inventory. So you'd expect them to be fairly low on inventory coming into the third quarter. Obviously, we don't have a lot of visibility into how they're running day to day. But I'd tell you, overall, the market is tight. It's been that way now for a little while. We're seeing differences across manufacturers. And then we've seen some regional product differences. I mean, you're probably not asking about (inaudible). But we're seeing tightness in (inaudible) and things ease up. But in general, the market types many of the manufacturers are on planned availability, and that's something that we've been dealing with for the last almost 3 years now. So it's not something that I think is especially difficult right now. We're managing it. We've been used to managing it, but supply is generally tight.

所以你在那裡有點分手，但我想你說我們是否看到住宅方面的供應鏈有任何變化？因此，簡短的回答是，是的，ARMA 出貨量季度為 4800 萬平方意味著製造商不僅出貨了所有可用產品，還出貨了部分庫存。因此，您預計他們第三季的庫存將相當低。顯然，我們對它們的日常運作並沒有太多了解。但我要告訴你，整體而言，市場很緊張。這樣已經有一段時間了。我們看到製造商之間存在差異。然後我們看到了一些地區產品的差異。我的意思是，您可能不會問（聽不清楚）。但我們看到（聽不清楚）緊張，情況有所緩解。但總的來說，許多製造商的市場類型都按計劃提供，這是我們過去近三年來一直在處理的事情。所以我認為現在這並不是特別困難的事。我們正在管理它。我們已經習慣了管理它，但供應普遍緊張。

Great. And just to expand on what you said after destocking a little bit earlier. Are there any estimations on how you feel that compare in the back half of the year? And if so, can you just also talk like work at that up?

偉大的。只是為了擴展您在早些時候去庫存後所說的內容。與下半年相比，有什麼感受嗎？如果是這樣，你能像工作一樣說話嗎？

Yes. Just quickly on that one. We said that we think that the destocking is largely behind us. I mean I think everyone was surprised by the amount of inventory that was held at the contractor locations. We knew that there had been some builds at the end of last year. We called it in the middle of last year that we saw the market easing up and supply becoming a little bit easier. I think the manufacturers continue to ship in. I think the contractors at that time, we're continuing to take jobs -- to take shipments that they didn't actually have jobs for and it filled up pretty quickly. We think that's mostly behind us. It's not everywhere. Obviously, we don't have visibility into every contractors warehouse right now. But we think it's coming back to normal.

是的。很快就那個。我們表示，我們認為去庫存基本上已經結束。我的意思是，我認為每個人都對承包商所在地的庫存量感到驚訝。我們知道去年年底已經有一些建設。我們在去年年中稱，我們看到市場放緩，供應變得更加容易。我認為製造商繼續發貨。我認為當時的承包商，我們正在繼續接受工作——接受他們實際上沒有工作的貨物，而且很快就填滿了。我們認為這基本上已經過去了。它不是到處都有。顯然，我們現在無法了解每個承包商的倉庫。但我們認為它正在恢復正常。

We do think the overall commercial market will probably be down a little bit in the second half of the year relative to sort of original expectations. But that's more to do with cycle times extending labor availability. You can imagine the last -- I mean both on residential and commercial, some of the heat-related issues through the Southern states, particularly Texas and Arizona, over the last several weeks have been significant, and you can't get up on a roof and do that type of work in that type of heat. So we're pleasing to see that come down. We're not sure that gets all caught up in the back half of the year because labor is pretty tight as well. So -- but we think most of the supply chain issues and most of the contractor stock has been depleted.

我們確實認為，相對於最初的預期，今年下半年整體商業市場可能會略有下降。但這更多地與延長勞動力可用性的周期時間有關。你可以想像最後一個 - 我的意思是在住宅和商業方面，過去幾周南部各州，特別是德克薩斯州和亞利桑那州的一些與高溫相關的問題非常嚴重，你無法站起來屋頂並在那種熱量下做那種工作。所以我們很高興看到這一點下降。我們不確定這會在今年下半年全部完成，因為勞動力也相當緊張。所以，但我們認為大部分供應鏈問題和大部分承包商庫存已經耗盡。

Our next question comes from Marius Morar from Zelman & Associates.

我們的下一個問題來自 Zelman & Associates 的 Marius Morar。

Just a quick one on storms. About 6 months ago, I think you said that you expected about 2% to 3% contribution to growth from the storms normalizing on a year-over-year basis, given the strength we've had. I'm just curious if you have any thoughts on that, if you have it updated [in the press]?

只是關於風暴的快速介紹。大約 6 個月前，我想您曾說過，鑑於我們現有的實力，預計風暴正常化對經濟成長的貢獻約為 2% 至 3%。我只是好奇你對此有什麼想法嗎？你是否[在媒體上]更新了它？

So we did say that we -- our planning assumption was always going to be and we'll always be at the start of any year, our assumption will be a 10-year average storm cycle. In the first half of the year, we've probably seen in the storms that would probably carry us through in that if we saw nothing the rest of the year. But nothing the rest of the year, it's probably not a totally reasonable assumption. So if we saw a reasonable amount of storm activity in the second half of the year, you'd expect it to be up, quantifying exactly what that looks like right now is still probably a little bit too early. I mean, I think that we're -- we certainly see it as better than average. We would expect that to be. But even on the storms that have occurred in the first half of the year, we're still getting numbers that are coming in, and it's difficult to quantify based on kind of best knowledge and how we think about the market, we would expect it to be above the 10-year average, but how far above, we're not quite sure right now.

所以我們確實說過，我們的規劃假設始終是，而且我們總是在任何一年的開始時，我們的假設將是 10 年平均風暴週期。今年上半年，我們可能經歷過暴風雨，如果今年剩下的時間我們什麼也沒看到，那麼這些暴風雨可能會帶我們度過難關。但今年剩下的時間裡什麼都沒有，這可能不是一個完全合理的假設。因此，如果我們在下半年看到相當數量的風暴活動，你會預期它會增加，但現在準確量化風暴活動的情況可能還為時過早。我的意思是，我認為我們確實認為它比平均水平要好。我們希望如此。但即使在今年上半年發生的風暴中，我們仍然收到了即將到來的數據，並且很難根據最好的知識和我們對市場的看法來量化，我們預計會發生這樣的情況。高於10 年平均水平，但高出多少，我們現在還不太確定。

Our next question comes from Mike Dahl from RBC.

我們的下一個問題來自加拿大皇家銀行 (RBC) 的 Mike Dahl。

Just on that last point, Julian, since it seems like the industry has still been like largely hand to mouth and as Frank mentioned, a little rethought about manufacturers kind of producing all out in the set-off volumes have kind of matched broadly that strength. You're just heading into the hurricane season. So when we're thinking about clearly this year could end up significantly above normal storm demand, the concerns out there that still exists on roofing now has kind of shifted to, well, how do you comp against that next year. To the extent that there's additional storm demand in the form of hurricanes this year, is that something that can get served in '23? Or do you think that helps kind of buffer some of the comps as we look out to '24? Maybe if you can just talk about that. And maybe if you can what you're actually able to do on restock into the back half of the year and kind of safety stock that you can build?

就最後一點而言，朱利安，由於該行業似乎仍然主要是勉強糊口，正如弗蘭克提到的那樣，對製造商在抵消量中全力生產的一點重新思考已經大致匹配了這​​種實力。您剛進入颶風季節。因此，當我們清楚地考慮今年的風暴需求最終可能會大大高於正常的風暴需求時，現在對屋頂仍然存在的擔憂已經轉移到，嗯，你如何與明年進行比較。就今年以颶風形式出現的額外風暴需求而言，這是否可以在 23 年得到滿足？還是你認為這有助於緩衝一些比較，因為我們期待'24？也許你能談談這個。也許如果你能在下半年補貨以及建立安全庫存方面實際能夠做些什麼？

Sure. My short answer would be yes, yes and yes. I think to some of the comments you made, I mean, it's -- if we were to see a significant storm activity in the second half of the year, given the current environment, I think it would be difficult to imagine us fulfilling all needs. Now remember, if you see -- I mean, hurricanes particularly take a while to deal with because of -- because usually, there's a lot of devastation, people are out of the market and you've got to get back into it. It takes a little while for them to ramp up. So they generally materialize over 4 quarters as it is. I think that the -- you should assume that the shipments in Q2 from the manufacturers, a good chunk of that went into inventory. Not all that are shipped out of the door and go on the job site. So there is some inventory sitting in distributors' warehouses right now. Certainly, our balance sheet reflects that as well. So that's going to be a part of it.

當然。我的簡短回答是，是，是，是。我認為，對於您提出的一些評論，我的意思是，如果我們在下半年看到重大風暴活動，考慮到當前的環境，我認為很難想像我們能夠滿足所有需求。現在請記住，如果你看到 - 我的意思是，颶風特別需要一段時間來應對，因為 - 因為通常會發生很多破壞，人們離開市場，而你必須重新進入市場。他們需要一段時間才能提升。因此，它們通常會在 4 個季度內實現。我認為——你應該假設第二季度製造商的發貨量，其中很大一部分進入了庫存。並不是所有的東西都會被運出大門並到達工作現場。所以現在經銷商的倉庫裡還有一些庫存。當然，我們的資產負債表也反映了這一點。所以這將是其中的一部分。

The next piece would be, the manufacturers are still going to produce and how they run is going to determine a lot of the marginal output, if you like, 1 million or 2 million squares here or there. But it's really difficult to determine. But any significant storm, there's probably a difference between one that hits Texas and one that hit Louisiana as well. So -- but any storm of any size that has real impact and has significant wind damage is certainly going to carry over and bolster 2024 demand from a storm perspective. But look, I mean, our planning assumption is always going to be a 10-year average. And we -- there is usually storm carryover. We had time carryover into this year from Ian last year. So these things tend to even out over time. But yes, any storm in the second half of this year will be difficult to service.

下一部分是，製造商仍然要生產，他們的運作方式將決定很多邊際產量，如果你願意的話，這裡或那裡 100 萬或 200 萬平方。但確實很難確定。但任何重大風暴，襲擊德克薩斯州的風暴和襲擊路易斯安那州的風暴都可能有所不同。因此，從風暴的角度來看，任何規模的、具有實際影響和嚴重風害的風暴肯定會延續並支撐 2024 年的需求。但是，我的意思是，我們的規劃假設始終是 10 年平均值。而我們——通常會有風暴殘留。我們把去年伊恩的時間結轉到今年了。因此，隨著時間的推移，這些事情往往會趨於平衡。但是，是的，今年下半年的任何風暴都將難以提供服務。

Mike, just a couple of thoughts in addition to Julian's good comments about, so I mean ARMA was up 13%. I mean everyone sort of knows that one. Our volume out the door on shingles is about 6% up. So that difference you can largely see as folks restocking in the quarter. We made a pivot kind of mid-quarter to knowing that the demand environment was going to be better and started to restock. And we'll continue to do that until we get to the right point in the kind of late summer, early fall, where we don't want to carry that much through the winter. Depending on what happens in winter, the manufacturers probably built a little bit of inventory in the late winter, early spring, which is one of their abilities to be able to put out a 48 million squares in the second quarter. If they build more inventory, then that will give us the buffer that we need.

麥克，除了朱利安的好評之外，還有一些想法，所以我的意思是 ARMA 上漲了 13%。我的意思是每個人都知道這一點。我們的帶狀皰疹出貨量增加了約 6%。因此，您可以在很大程度上看到人們在本季補貨時看到的差異。我們在季度中期做出了一個轉變，知道需求環境將會更好，並開始補充庫存。我們將繼續這樣做，直到我們在夏末秋初達到正確的時間點，我們不想在冬天攜帶那麼多東西。根據冬季的情況，製造商可能會在冬末春初建立一些庫存，這是他們能夠在第二季度生產4800萬平方的能力之一。如果他們建立更多的庫存，那麼這將為我們提供所需的緩衝。

We certainly have a balance sheet to be able to do it if we need to. We'll lap hurricane Ian in September, although we think there's probably more than a year's worth of demand there, but it will subside after we begin to lap the early days of that one. Hurricane season will obviously have a watchful eye on that one as we go forward. So we think we're in a good position, and we're ready to pivot. And hopefully, you've seen us by virtue of the inventory levels over the last year or so that we can pivot pretty quickly and be responsive.

如果需要的話，我們當然有一個資產負債表可以做到這一點。我們將在 9 月經歷伊恩颶風，儘管我們認為那裡的需求可能超過一年，但在我們開始經歷颶風初期後，需求將會消退。隨著我們的前進，颶風季節顯然會密切關注這個問題。因此，我們認為我們處於有利位置，並且已準備好進行轉型。希望您已經透過去年左右的庫存水準看到了我們，以便我們可以快速調整併做出回應。

Our next question comes from Truman Patterson of Wolfe Research.

我們的下一個問題來自沃爾夫研究中心的杜魯門帕特森。

So you all drove some nice leverage on the OpEx line year-over-year this quarter. Frank, you mentioned lower incentive compensation, payroll benefit costs, and I think also lower fuel. As we're thinking through the back half of the year, do you still generally expect continued leverage year-over-year? Or were there any kind of onetime items in the second quarter result to think about?

因此，本季你們都在營運支出線上實現了一些不錯的槓桿作用。法蘭克，你提到了較低的激勵薪資、薪資福利成本，我認為還有較低的燃料。當我們思考今年下半年時，您普遍仍預期槓桿率會比去年同期持續成長嗎？或者第二季業績中是否有任何一次性項目需要考慮？

Yes. I think on the OpEx leverage, look, we were excited about what we did. We did get help, obviously, in the incentive comp accrual reset. Last year was an awfully big year for us, and we reset the targets as we put the budget together this year. So you should assume that the year-over-year reduction in incentive comp should continue, although it should get smaller as the rest of the year progresses. Look, if fuel stays relatively where it is, we should continue to get a little bit of benefit on that one.

是的。我認為在營運支出槓桿方面，我們對我們所做的事情感到興奮。顯然，我們確實在激勵補償應計重置方面得到了幫助。去年對我們來說是非常重要的一年，我們在今年制定預算時重新設定了目標。因此，您應該假設激勵薪酬的逐年減少應該繼續，儘管隨著今年剩餘時間的推移，減少的幅度應該會減少。看，如果燃料相對保持在原來的水平，我們應該會繼續從這方面獲得一點好處。

I think the big thing for me on OpEx is when you look at the nominal quarterly number, the $378 million, and then you back out the greenfields and the acquisition-related costs, you really see the leverage in the existing branches. It's pretty impressive. We'll continue to battle inflation like everybody does. But I think the team did a really nice job of being able to handle the additional volume that came in. And look, resi's at bread and butter, and we did a really nice job of doing that in the field. The team did a nice job. We keep an eye on its cost when the volumes came in, we should be able to continue to put something, call it, in the mid-15s or so in the third quarter. And then we'll see what the fourth quarter holds.

我認為營運支出對我來說最重要的是，當你查看名目季度數字（3.78 億美元），然後取消綠地和收購相關成本時，你確實會看到現有分公司的槓桿作用。這真是令人印象深刻。我們將像其他人一樣繼續對抗通貨膨脹。但我認為團隊在處理額外的數量方面做得非常好。看，resi 的工作就是麵包和黃油，我們在現場做得非常好。該團隊做得很好。當銷量增加時，我們會密切關注其成本，我們應該能夠在第三季 15 左右左右繼續投入一些東西。然後我們看看第四季會發生什麼。

Our next question comes from Philip Ng from Jefferies.

我們的下一個問題來自 Jefferies 的 Philip Ng。

Congrats on a really strong quarter. Frank, if I heard you correctly, it sounds like you're expecting volumes to worsen in your nonres segment in 3Q. That might just be simply comped. But curious what you're seeing in terms of bidding activity, how you kind of see fourth quarter shaping up? And then do you expect 2024 from a demand standpoint, returning back to growth, certainly, there's some concerns about tire lending and what that could mean for the nonres market?

恭喜這個季度的強勁表現。弗蘭克，如果我沒聽錯的話，聽起來您預計第三季非收入部分的交易量會惡化。這可能只是簡單的比較。但好奇您在競標活動中看到了什麼，您又如何看待第四季的情況？然後，從需求的角度來看，您是否預計 2024 年會恢復成長，當然，對輪胎貸款存在一些擔憂，這對非再生能源市場意味著什麼？

Yes. So good set of questions. And you're absolutely right. I'm glad you brought it up. So the Q3 volumes are much more around last year's comp. It was an extremely strong comp on the non-res side in Q3 of last year. We're not seeing sequential degradation. As a matter of fact, it kind of gets less negative as you get through the month and the second half of the year. Bidding and quoting activity is actually up kind of low double digits. So we feel good about that. The project sizes are a little bit smaller, but we're seeing a lot of activity on the R&R side of nonres, so a little bit less on the new res and a little bit more on R&R. That's a pivot that we thought was going to happen as material became available and as interest rates ticked up a little bit. Certainly, when you look at nonres in 2024, and we really haven't put our minds totally around next year yet, but the comps in the first half will certainly be one that hopefully we'll be able to grow off of.

是的。很好的一組問題。你是完全正確的。我很高興你提出來。因此，第三季的銷量更接近去年的水平。去年第三季度，在非資源方面，這是一個非常強大的競爭。我們沒有看到連續的退化。事實上，當你度過這個月和下半年時，它的負面影響就會減弱。投標和報價活動實際上呈現低兩位數增長。所以我們對此感覺良好。專案規模稍小一些，但我們看到非資源的 R&R 方面有很多活動，因此新資源的活動較少，而 R&R 的活動較多。我們認為，隨著材料的出現和利率的略微上升，這種轉變將會發生。當然，當你看到 2024 年的非比賽時，我們確實還沒有完全考慮明年的情況，但上半年的比賽肯定會是我們希望能夠成長的一個。

Is there any mix in losses between the R&R versus the new construction side for nonres?

R&R 與非資源新建施工方之間是否有混合損失？

Yes. In the new resi piece, you're going to get a little bit higher ISO to single-ply ratio, given the fact that you're putting a pretty high R&R factor on there, so you might get a couple of layers of ISO before you put the membrane on. In R&R, it really depends on the extent of the reroof if they're only going to tear off the membrane and they might not get as much ISO in it. Obviously, if they go all the way down, you might be able to get some more. So generally, the relationship between ISO and single-ply going to be different in R&R versus new res.

是的。在新的 Resi 作品中，考慮到您在那裡放置了相當高的 R&R 係數，您將獲得更高一點的 ISO 與單層比率，因此您可能會在之前獲得幾層 ISO你把膜貼上。在 R&R 中，這實際上取決於屋頂翻修的程度，如果他們只是撕掉薄膜，那麼他們可能不會獲得那麼多的 ISO。顯然，如果它們一路下跌，你可能會得到更多。因此，一般來說，R&R 與新資源中的 ISO 和單層之間的關係會有所不同。

Yes. So it's not a switch between different types of products. It's more of, as Frank said, the ratio of insulation to the skin material.

是的。所以這不是不同類型產品之間的切換。正如弗蘭克所說，更多的是絕緣材料與表皮材料的比例。

Our next question comes from David Manthey from Baird.

我們的下一個問題來自貝爾德 (Baird) 的大衛曼蒂 (David Manthey)。

Just a quick one here. Could you level set us on the current gross margin differential between resi and nonres roofing?

這裡只是快速介紹一下。您能為我們介紹一下目前再生能源和非再生能源屋頂之間的毛利率差異嗎？

Yes. Dave, there is the same general differential that you have seen throughout history. It obviously ebbs and flows depending on the quarter and the mix and whether it's R&R versus new and whether it's direct versus warehouse shipments. So no real change in the rack and stack on that one. As I think you know, and I'll just blend in the complementary real quick, the Coastal acquisition was helpful on the complementary side. So I'd say the resi and complementary are at the top end of the range and then you get the commercial on the lower end.

是的。戴夫，您在整個歷史中都看到過同樣的普遍差異。顯然，它的起伏取決於季度和組合，以及是否是 R&R 與新貨以及是否是直接發貨與倉庫發貨。因此，機架和堆疊上沒有真正的變化。我想你知道，我會很快融入互補性，海岸收購在互補性方面很有幫助。所以我想說，resi 和complementary 處於該範圍的高端，然後你會得到低端的廣告。

And Dave, remember that there was a lot more inflation on the nonres side than there was the residential side. So in terms of mix of business that we have, it's tilted a little bit more towards the nonres side. But also remember that the OpEx associated with delivery in nonres is lower relative to the performance. So we see margins -- bottom line margins are about the same. And on the commercial -- the nonresidential side of the business, inventory terms generally are better as well, so we can manage that. There's some direct ships that we get credit for. So we can drive really nice return on capital in that business as well.

戴夫，請記住，非住宅方面的通貨膨脹比住宅方面要高得多。因此，就我們的業務組合而言，它更傾向於非服務方面。但也要記住，與非資源交付相關的營運支出相對於效能而言較低。所以我們看到利潤率——底線利潤率大致相同。在商業方面——非住宅方面，庫存條件通常也更好，所以我們可以管理這一點。有一些直航船舶值得我們信賴。因此，我們也可以在該業務中獲得非常好的資本回報。

Our next question comes from Trey Grooms from Stephens.

我們的下一個問題來自史蒂芬斯的特雷·格魯姆斯。

This is Noah Merkousko on for Trey. I just want to ask, what do you see as the biggest variables that get you to the high end versus the low end of EBITDA guidance range for the full year?

我是諾亞·默庫斯科（Noah Merkousko），替補特雷。我只是想問，您認為全年 EBITDA 指導範圍的高端與低端的最大變數是什麼？

Yes. So probably the first thing would be the most immediate thing top of mind would be the price increase. Execution on that. And that will be critical. Like I said, we do execute on that starting early next week. So that will be a really important factor in terms of both top and bottom line. Obviously, the extent of any additional storms, and look, I mean, one of the things that we're looking at is, as you said, we've added a number of greenfields at the start of the year. We have worked very, very hard on making sure they ramp up quickly, getting them to profitability, seeing the acquisitions that we've done drive forward and performed better than our outlook would also help towards the top end and execution of the branches, making sure we can maintain the leverage that we generated in the second quarter. So it's a little bit of everything. Top of mind right now in terms of top end versus others would be the price increase.

是的。因此，最緊迫的事情可能是價格上漲。就這樣執行。這將是至關重要的。就像我說的，我們確實從下週初開始執行。因此，就營收和利潤而言，這將是一個非常重要的因素。顯然，任何額外風暴的程度，我的意思是，我們正在關注的事情之一是，正如您所說，我們在年初增加了一些綠地。我們非常非常努力地確保它們快速增長，讓它們實現盈利，看到我們所做的收購推動了進展並且表現比我們的預期更好，這也將有助於實現分支機構的高端和執行力，使我們確信我們可以維持第二季產生的槓桿。所以一切都只是一點點。與其他高端產品相比，目前最重要的是價格上漲。

And the only other thing to keep in mind is just the end of the fourth quarter is always a tough period of time to handicap once you get past Thanksgiving is it wintertime or not. But that's always in our thinking as we project the second half of the year.

唯一需要記住的另一件事是，一旦你過了感恩節，無論是否是冬天，第四季末總是一段艱難的時期。但在我們計劃下半年時，這始終是我們的想法。

Our next question comes from Kathryn Thompson from Thompson Research Group.

我們的下一個問題來自湯普森研究小組的凱瑟琳·湯普森。

This is actually Brian Biros on for Kathryn. On the non-growth side or maybe even the complementary product side, just thinking a little bit bigger picture, are you seeing any impact or consideration yet from kind of state regulations that are aimed at renovating buildings for improved energy efficiency? We've been following some of these. I think a big one is in New York. So just curious to see if or when you might see that in your business.

這實際上是布萊恩比羅斯 (Brian Biros) 為凱瑟琳 (Kathryn) 配音的。在非成長方面，甚至可能是補充產品方面，只要考慮一下更大的前景，您是否看到旨在改造建築物以提高能源效率的國家法規的任何影響或考慮？我們一直在關注其中的一些。我認為最大的一個在紐約。所以只是想知道您是否或何時會在您的業務中看到這種情況。

So I'll give you a little bit of color, Brian, on what we are seeing in our complementary business, particularly around the waterproofing and this was one of the thesis that we had. We are seeing significant uptick in terms of repair work in the waterproofing space. And that, we believe, is coming from a lot of concerns about the maintenance of waterproofing post the Surfside condo collapsed a couple of years ago. We believe that it's taken some time. We think that there's going to be some new regulations coming in around that.

因此，布萊恩，我將向您介紹我們在互補業務中所看到的情況，特別是在防水方面，這是我們的論文之一。我們看到防水空間的維修工作顯著增加。我們相信，這是由於幾年前瑟夫賽德公寓倒塌後對防水維護的許多擔憂。我們相信這需要一些時間。我們認為將會推出一些新的法規來解決這個問題。

So the one that we've had a thesis around and sort of underpinned the acquisition of Coastal and our belief in the waterproofing as a great business for us to be in, it ties very, very closely to repair and replacement on the roofing side. It ties very nicely in with the overall nonres roofing market as well. They are overlapping businesses. But the specialty part of our business on that side of it is certainly seeing an impact from what we believe is probably tighter regulation and people sort of going back, kind of associations, building the owners going back and taking a look at their maintenance schedules with regards to waterproofing and an uptick in terms of what we see there.

因此，我們有一篇論文圍繞著這一點，在某種程度上支撐了對 Coastal 的收購，以及我們對防水作為一項偉大業務的信念，它與屋頂方面的維修和更換密切相關。它也與整個非可再生屋頂市場緊密相連。它們是重疊的業務。但我們業務在這方面的專業部分肯定會受到我們認為可能更嚴格的監管的影響，人們會回去，建立某種協會，讓業主回去並查看他們的維護計劃關於防水以及我們在那裡看到的情況的上升。

And beyond that, I think that there's a very long run trend towards more insulation. Obviously, in terms of building energy efficiency codes, generally code so many point in one direction, and that's been to higher our value. So the insulation that we ship into commercial buildings has been -- has only been increasing. Certainly, municipalities, they don't all implement the same building code at the same time. But that's been something that's been a long run trend towards more and more insulation. So I think you see it in the commercial segment of our business.

除此之外，我認為從長遠來看，加強隔熱是一種趨勢。顯然，就建築節能規範而言，一般都是朝一個方向編碼這麼多點，這樣我們的價值就更高了。因此，我們運送到商業建築中的隔熱材料一直在增加。當然，市政當局不會同時執行相同的建築規範。但這是越來越絕緣的長期趨勢。所以我認為你在我們業務的商業領域看到了這一點。

Then the other one we see is things like Title 24 in California, where in the mandate code rules, the demand for that product. So there are certainly building codes that impact it. I'd say that we're seeing it probably most in waterproofing and in commercial insulation.

然後我們看到的另一個是像加州的 Title 24 那樣的內容，其中在授權代碼規則中規定了對該產品的需求。所以肯定有一些建築規範會影響它。我想說的是，我們最常見的可能是防水和商業絕緣材料。

And that concludes the questions. Now I would like to turn the call back over to Mr. Francis for his closing remarks.

問題就這樣結束了。現在我想將電話轉回給法蘭西斯先生，讓他作總結發言。

Thank you, Sam, and thank you to everyone for dialing into our call this evening. We were tremendously excited about both the second quarter and the transaction at the beginning of the third quarter that allowed us to repurchase all of the outstanding preferred shares. We think there's a significant moment for Beacon and the work that we've done over the last several years to build the flexibility in the balance sheet capacity to execute a transaction like that. It's been a tremendously rewarding last month or so, and I'm excited for both our shareholders and the employees of the company. And with that, thank you for your appreciation of Beacon.

謝謝你，山姆，也謝謝大家今晚撥通我們的電話。我們對第二季和第三季初的交易感到非常興奮，這使我們能夠回購所有已發行優先股。我們認為，對於 Beacon 以及我們過去幾年為建立執行此類交易的資產負債表能力的靈活性所做的工作來說，這是一個重要的時刻。上個月左右的時間是非常有意義的，我為我們的股東和公司員工感到興奮。在此，感謝您對 Beacon 的讚賞。

This concludes today's call. Thank you, everyone, for joining. You may now disconnect.

今天的電話會議到此結束。謝謝大家的加入。您現在可以斷開連線。