TopBuild Corp (BLD) 2023 Q1 法說會逐字稿

Greetings, and welcome to the TopBuild's First Quarter 2023 earnings release. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 TopBuild 的 2023 年第一季度收益發布。 （操作員說明）提醒一下，正在錄製此會議。

It is now my pleasure to introduce your host, Tabitha Zane, Vice President, Investor Relations. Thank you, Ms. Zane, you may begin.

現在我很高興向您介紹主持人，投資者關係副總裁 Tabitha Zane。謝謝你，Zane 女士，你可以開始了。

Thank you, and good morning. On the call today are Robert Buck, President and Chief Executive Officer; and Rob Kuhns, Chief Financial Officer. We have posted senior management's formal remarks and a PowerPoint presentation that summarizes our comments on our website at topbuild.com. Many of our remarks will include forward-looking statements, which are subject to known and unknown risks and uncertainties, including those set forth in this morning's press release as well as in the company's filings with the SEC.

謝謝，早上好。今天接聽電話會議的有總裁兼首席執行官羅伯特·巴克 (Robert Buck)；和首席財務官 Rob Kuhns。我們已經在我們的網站 topbuild.com 上發布了高級管理層的正式評論和總結我們評論的 PowerPoint 演示文稿。我們的許多評論將包含前瞻性陳述，這些陳述受已知和未知的風險和不確定性的影響，包括今天上午的新聞稿以及公司提交給美國證券交易委員會的文件中規定的那些。

The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. Please note that some of the financial measures to be discussed on this call will be on a non-GAAP basis. The non-GAAP measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. We have provided a reconciliation of these financial measures to the most comparable GAAP measures in a table included in today's press release and in our first quarter presentation, which can also be found on our website.

公司不承擔更新或補充因後續事件而變得不真實的前瞻性陳述的義務。請注意，本次電話會議要討論的一些財務措施將基於非公認會計原則。非 GAAP 措施不應孤立地考慮或替代根據 GAAP 編制的結果。我們在今天的新聞稿和我們第一季度的演示文稿中的表格中提供了這些財務措施與最具可比性的 GAAP 措施的對賬，該表格也可以在我們的網站上找到。

I will now turn the call over to Robert Buck.

我現在將把電話轉給羅伯特·巴克。

Good morning, and thank you for joining us today. We are pleased to report that 2023 is off to a good start with a solid first quarter performance. Revenue increased 8.2% and our adjusted EBITDA margin expanded 150 basis points to 18.8%. Both business segments, installation and specialty distribution also expanded our adjusted operating and EBITDA margins.

早上好，感謝您今天加入我們。我們很高興地報告，2023 年第一季度表現良好，開局良好。收入增長 8.2%，我們調整後的 EBITDA 利潤率擴大 150 個基點至 18.8%。安裝和專業分銷這兩個業務部門也擴大了我們調整後的運營和 EBITDA 利潤率。

Our consistently strong performance quarter-after-quarter is a direct result of the hard work of our operations and branch support teams, the insight and command we have into all facets of our business, our focus on operational efficiency and excellence; our uniquely advantaged business model with both installation and specialty distribution, our diversified end markets, residential, commercial and industrial, our strong partnerships with our suppliers and customers and our strategic approach to acquisitions and their integration onto our advanced ERP platform.

我們每季度持續強勁的表現是我們運營和分支支持團隊辛勤工作的直接結果，我們對業務各個方面的洞察力和指揮力，以及我們對運營效率和卓越的關注；我們獨特的優勢商業模式包括安裝和專業分銷、我們多元化的終端市場、住宅、商業和工業、我們與供應商和客戶的牢固合作夥伴關係以及我們的收購戰略方法以及將它們整合到我們先進的 ERP 平台上。

Our installation business is benefiting from the large backlog of single and multifamily homes under construction, and we are encouraged that our builder customers continue to see improvements in terms of buyer interest. This supports our steadfast conviction that the long-term fundamentals of the housing industry are strong, supported by limited supply of both new and existing homes and favorable demographic trends.

我們的安裝業務受益於在建單戶和多戶住宅的大量積壓，令我們感到鼓舞的是，我們的建築商客戶繼續看到買家興趣有所改善。這支持了我們的堅定信念，即在新房和現房供應有限以及有利的人口趨勢的支持下，房地產行業的長期基本面強勁。

Our installation business is also benefiting from an increase in light commercial work. We've mentioned before that light commercial and residential installation are very similar and most of our branches are able to perform either type of project. Our heavy commercial branches are also involved in numerous large and long-running projects, including the Salt Lake City Airport expansion, the new Microsoft and YouTube corporate centers and a new Intuit Dome just to name a few.

我們的安裝業務也受益於輕型商業工作的增加。我們之前提到過，輕型商業和住宅安裝非常相似，我們的大多數分支機構都能夠執行任何一種類型的項目。我們的大型商業分支機構還參與了許多大型和長期項目，包括鹽湖城機場擴建、新的 Microsoft 和 YouTube 企業中心以及新的 Intuit Dome 等等。

The support and encourage both light and heavy commercial growth initiatives we have been providing additional resources and tools for our salespeople and branch managers to help them better identify commercial opportunities and secure this work. One of these is our proprietary lead app tool showcased at our Investor Day last May. This cloud-based data hub identifies and aggregates commercial construction project leads which are then pushed out to our sales force dramatically improving bid opportunities, sales productivity and win rates.

支持和鼓勵輕型和重型商業增長計劃，我們一直在為我們的銷售人員和分支機構經理提供額外的資源和工具，以幫助他們更好地識別商業機會並確保這項工作。其中之一是去年 5 月在我們的投資者日展示的我們專有的領先應用程序工具。這個基於雲的數據中心識別並彙總商業建築項目線索，然後將其推送給我們的銷售團隊，從而顯著提高投標機會、銷售效率和中標率。

Direct labor remains tight within the construction industry, but is a continued strength for TopBuild. We remain focused on enhancing labor and sales productivity through the sharing of best practices, the use of proprietary technology tools and a highly efficient branch management process, all of which drive better financial results. In addition, our advanced ERP system gives us the ability to monitor productivity in real time and share labor among our branches. This is a major differentiator and gives us a competitive advantage.

建築行業的直接勞動力仍然緊張，但這是 TopBuild 的持續優勢。我們仍然專注於通過共享最佳實踐、使用專有技術工具和高效的分支機構管理流程來提高勞動力和銷售生產力，所有這些都推動了更好的財務業績。此外，我們先進的 ERP 系統使我們能夠實時監控生產力並在我們的分支機構之間共享勞動力。這是一個主要的差異化因素，為我們提供了競爭優勢。

Looking at our specialty distribution business. Overall, sales increased 2.7%. Residential distribution volume declined as our smaller contractor customers brought inventory levels down and has a mix of units under construction shifted to multifamily. Offsetting the decline in residential distribution volume and demonstrating the stream of our diversified business model was a solid 8.7% increase in sales from our commercial and industrial channels. Our specialty distribution teams are supporting a number of major industrial manufacturing projects, including the Tesla Gigafactory in Austin and its Taiwan semiconductor manufacturing center in Phoenix. Other long-running projects include alternative fuel facilities for Marathon and Phillips 66.

看看我們的專業分銷業務。總體而言，銷售額增長了 2.7%。住宅分銷量下降，因為我們的小型承包商客戶降低了庫存水平，並且在建單元組合轉向多戶型。我們商業和工業渠道的銷售額穩步增長 8.7%，抵消了住宅分銷量的下降並展示了我們多元化業務模式的流向。我們的專業分銷團隊正在支持許多主要的工業製造項目，包括位於奧斯汀的 Tesla Gigafactory 及其位於鳳凰城的台灣半導體製造中心。其他長期運行的項目包括 Marathon 和 Phillips 66 的替代燃料設施。

Looking ahead, we expect to continue to support these large industrial and commercial projects. Our customer base recognizes that we are the leading supplier of mechanical insulation in North America and our 37 fabrication facilities across North America enable us to customize and engineer any type of product solutions our customers require. In addition, with only 10% market share of this very fragmented $5.5 billion market, we see great opportunities for growth, both organically and through acquisitions.

展望未來，我們希望繼續支持這些大型工商業項目。我們的客戶群認識到我們是北美領先的機械絕緣供應商，我們在北美的 37 家製造工廠使我們能夠定制和設計客戶需要的任何類型的產品解決方案。此外，由於在這個非常分散的 55 億美元市場中僅佔 10% 的市場份額，我們看到了通過有機增長和收購實現增長的巨大機會。

We have not seen an impact on demand in either the commercial or industrial markets following the recent turmoil in the banking industry. On the commercial installation side, our backlog remains robust, and we are already bidding projects into late 2024 and early 2025. For specialty distribution, we see a lot of major projects being planned across several diverse industries, giving the demand for mechanical insulation. Maintenance and repair work on many commercial and industrial sites has also been scheduled, and this recurring revenue stream should serve as a continued stabilizing revenue driver for our specialty distribution business. We remain very optimistic about the opportunities for growth in both the commercial and industrial end markets.

在最近的銀行業動蕩之後，我們沒有看到對商業或工業市場需求的影響。在商業安裝方面，我們的積壓訂單依然強勁，我們已經在競標 2024 年底和 2025 年初的項目。對於專業分銷，我們看到多個不同行業正在規劃許多重大項目，這提供了對機械絕緣的需求。許多商業和工業場所的維護和維修工作也已安排妥當，這一經常性收入流應成為我們專業分銷業務持續穩定的收入驅動力。我們對商業和工業終端市場的增長機會仍然非常樂觀。

Turning to fiberglass. Most of you know there was an industry cost increase in December for both batts and loosefill, which did have some traction. Supply is expected to remain tight as we expect a number of production lines to be bought down for maintenance during the year.

轉向玻璃纖維。你們中的大多數人都知道，12 月份棉絮和鬆散填料的行業成本都有所增加，這確實有一定的吸引力。預計供應將保持緊張，因為我們預計年內將購買大量生產線進行維護。

Looking ahead, Acquisitions remain our #1 capital allocation priority and will continue to be a key component of our growth strategy and important additions to our overall momentum of our business. We completed one acquisition in the first quarter, SRI Holdings, which is expected to contribute approximately $62 million of annual revenue.

展望未來，收購仍然是我們的第一大資本配置優先事項，並將繼續成為我們增長戰略的關鍵組成部分，也是我們業務整體發展勢頭的重要補充。我們在第一季度完成了一項收購，SRI Holdings，預計將貢獻約 6200 萬美元的年收入。

SRI is a great addition to our installation segment with a strong presence in Georgia, Florida, Ohio and Michigan. As we do with all acquisitions upon a close, our integration team immediately works to share best practices to streamline processes and procedures, incorporate the newly acquired company onto our supply chain, leverage technology and best practices to improve labor and sales productivity, eliminate back office and operational redundancies, optimize fleet and logistics and locally empower great talent. Our growth targets are high-quality installation focused companies, both installers and specialty distributors that will enhance our scale, expand our customer base and generate strong returns for our shareholders.

SRI 是我們安裝部門的重要補充，在佐治亞州、佛羅里達州、俄亥俄州和密歇根州擁有強大的影響力。正如我們在完成所有收購時所做的那樣，我們的整合團隊立即努力分享最佳實踐以簡化流程和程序，將新收購的公司納入我們的供應鏈，利用技術和最佳實踐來提高勞動力和銷售生產力，消除後台辦公室和運營冗餘，優化車隊和物流，並在當地授權優秀人才。我們的增長目標是專注於高質量安裝的公司，包括安裝商和專業分銷商，這將擴大我們的規模，擴大我們的客戶群並為我們的股東帶來豐厚的回報。

We have a robust pipeline of prospects and expect to close some of these deals this year. In recent meetings, a number of you have asked if we have a target in terms of the mix of our business over the long term. The answer quite simply is no. We see opportunities to expand our presence both organically and through acquisitions in all 3 end markets we serve: residential, commercial and industrial. Combined, they represent a total addressable market for installation of over $17.5 billion, of which we have a combined 20% share. so plenty of white space in which to expand.

我們擁有大量潛在客戶，預計今年將完成其中一些交易。在最近的會議上，你們中的一些人問我們是否有長期的業務組合目標。答案很簡單是否定的。我們看到了在我們服務的所有 3 個終端市場（住宅、商業和工業）中有機地和通過收購擴大我們存在的機會。加起來，它們代表了一個總計超過 175 億美元的可尋址安裝市場，我們在其中佔有 20% 的份額。有足夠的空白空間可以擴展。

Before turning the call over to Rob, I want to emphasize that driving operational excellence and great execution throughout our organization has been and remains one of our most important areas of focus and is a key component of our 940-basis point of adjusted EBITDA margin expansion since first quarter 2018.

在將電話轉給 Rob 之前，我想強調的是，在整個組織內推動卓越運營和出色執行一直是並且仍然是我們最重要的關注領域之一，並且是我們 940 個基點的調整後 EBITDA 利潤率擴張的關鍵組成部分自 2018 年第一季度以來。

We locally empower our 400 plus business leaders to run their branches as distinct operations with full P&L responsibility. Branch leaders build their teams to include local management, sales and, at our installation branches, direct labor.

我們在當地授權我們的 400 多位商業領袖將他們的分支機構作為獨立的業務來運營，並承擔全部損益責任。分支機構負責人建立了他們的團隊，包括本地管理、銷售以及在我們的安裝分支機構中的直接勞動力。

At the corporate level, operational efficiencies are achieved across our entire network by leveraging supply chain efficiencies, sharing best practices, and streamlining back-office processes and procedures. Our ‘drive to improve’ culture is inherent in everything we do at TopBuild.

在公司層面，通過利用供應鏈效率、共享最佳實踐以及簡化後台流程和程序，我們在整個網絡中實現了運營效率。我們在 TopBuild 所做的一切都與生俱來“推動改進”的文化。

Rob?

搶？

Thanks Robert, and good morning everyone. As Robert noted, our team continues to execute at a high level, generating strong results. The strength of our strategically advantaged model was evident as we grew sales and expanded adjusted EBITDA margins at both Installation and Specialty Distribution.

謝謝羅伯特，大家早上好。正如羅伯特指出的那樣，我們的團隊繼續保持高水平執行，並取得了不錯的成績。隨著我們在安裝和專業分銷方面的銷售額增長和調整後的 EBITDA 利潤率的擴大，我們具有戰略優勢的模式的優勢顯而易見。

In addition, we saw solid sales growth across all of our diversified end markets. Moving to the financials, I will start with an overview of our first quarter results, update you on our balance sheet, and review our 2023 outlook. First quarter net sales increased 8.2% to $1.3 billion, with sales from our installation segment increasing 13.4% to $767.1 million, and sales from Specialty Distribution increasing 2.7% to $558.4 million.

此外，我們在所有多元化的終端市場都看到了穩健的銷售增長。轉到財務方面，我將首先概述我們的第一季度業績，向您更新我們的資產負債表，並回顧我們的 2023 年展望。第一季度淨銷售額增長 8.2% 至 13 億美元，其中安裝部門的銷售額增長 13.4% 至 7.671 億美元，專業分銷部門的銷售額增長 2.7% 至 5.584 億美元。

Installation's sales were driven by strong volume growth and higher selling prices. Specialty Distribution's sales were driven by higher selling prices offset by a decline in residential volume which Robert discussed earlier. Our adjusted gross margin for the first quarter was 29.3%, a 100-basis point expansion. This was driven by operational efficiencies, fixed cost leverage, and our continued success in managing inflation.

Installation 的銷售額是由強勁的銷量增長和更高的售價推動的。 Specialty Distribution 的銷售是由更高的銷售價格推動的，而這被羅伯特之前討論過的住宅銷量下降所抵消。我們第一季度調整後的毛利率為 29.3%，增長了 100 個基點。這是由運營效率、固定成本槓桿以及我們在管理通貨膨脹方面的持續成功推動的。

First quarter adjusted EBITDA increased 18.1% to $238.3 million and our adjusted EBITDA margin was 18.8%, a 150-basis point improvement compared to first quarter 2022. First quarter incremental EBITDA margin was 38%, and 43% on a same branch basis. First quarter adjusted EBITDA margin for our Installation segment was 21.4% and 15.8% for our Specialty Distribution segment, an improvement of 230-basis points and 20-basis points, respectively.

第一季度調整後的 EBITDA 增長 18.1% 至 2.383 億美元，我們調整後的 EBITDA 利潤率為 18.8%，與 2022 年第一季度相比提高了 150 個基點。第一季度的增量 EBITDA 利潤率為 38%，在同一分支機構基礎上為 43%。我們的安裝部門第一季度調整後的 EBITDA 利潤率為 21.4% 和專業分銷部門的 15.8%，分別提高了 230 個基點和 20 個基點。

Interest expense increased from $12 million to $18 million in the first quarter primarily as a result of higher variable interest rates. Our current average cost of debt is approximately 4.67% with approximately 60% fixed and 40% variable rates with no upcoming maturities until 2026. First quarter adjustments to Net Income were $3.7 million and were related to acquisition and integration costs.

第一季度的利息支出從 1200 萬美元增加到 1800 萬美元，這主要是由於浮動利率較高。我們目前的平均債務成本約為 4.67%，固定利率約為 60%，浮動利率約為 40%，直到 2026 年才到期。第一季度對淨收入的調整為 370 萬美元，與收購和整合成本有關。

First quarter adjusted earnings per diluted share were $4.36, a 25% increase from prior year. Moving to our balance sheet and cash flows, first quarter operating cash flow was $169.8 million, compared to $89.5 million in the prior year. This was driven by an 18.4% increase in Net Income and improvements in working capital. Working Capital was 15.6% in the quarter and, as I've mentioned on previous calls, we are targeting a range of 12% to 14% of sales by the end of this year.

第一季度調整後每股攤薄收益為 4.36 美元，比上年增長 25%。轉向我們的資產負債表和現金流，第一季度運營現金流為 1.698 億美元，而去年同期為 8950 萬美元。這是由淨收入增長 18.4% 和營運資金改善推動的。本季度的營運資金為 15.6%，正如我在之前的電話會議中提到的那樣，我們的目標是到今年年底達到銷售額的 12% 至 14%。

CapEx in the quarter was $15.6 million, 1.2% of revenue, and slightly below our long-term guidance. We did not repurchase any shares in the quarter. As Robert mentioned, acquisitions remain our number one capital allocation priority and we are working a robust pipeline of prospects.

本季度的資本支出為 1560 萬美元，佔收入的 1.2%，略低於我們的長期指導。本季度我們沒有回購任何股票。正如羅伯特所提到的，收購仍然是我們的首要資本配置優先事項，我們正在努力尋找強大的潛在客戶。

There were no significant changes to our debt structure and our outstanding short-term and long-term debt balances remained at just under $1.5 billion. We ended the first quarter with net debt leverage of 1.15x trailing 12 months adjusted EBITDA. Total liquidity on March 31, 2023, was $766.1 million, including cash of $333.8 million and an accessible revolver of $432.3 million.

我們的債務結構沒有發生重大變化，我們的未償短期和長期債務餘額保持在略低於 15 億美元的水平。我們在第一季度結束時的淨債務槓桿率為 1.15 倍的過去 12 個月調整後的 EBITDA。 2023 年 3 月 31 日的總流動資金為 7.661 億美元，包括現金 3.338 億美元和可動用的循環貸款 4.323 億美元。

Moving to annual guidance, we are reaffirming our outlook for 2023 provided on our fourth quarter call on February 23. As a reminder, total sales are expected to be between $4.7 billion and $4.9 billion and adjusted EBITDA to be in the range of $820 million to $910 million. We continue to expect that our residential sales will decline mid to upper single digits and single-family activity to be slower in the back half of the year.

轉向年度指導，我們重申我們在 2 月 23 日第四季度電話會議上提供的 2023 年展望。提醒一下，總銷售額預計在 47 億美元至 49 億美元之間，調整後的 EBITDA 將在 8.2 億美元至 8.2 億美元之間。 9.1 億美元。我們繼續預計我們的住宅銷售將在今年下半年下降中上個位數，單戶住宅活動將放緩。

Our expectation for our commercial and industrial end markets is for sales to expand by low to mid-single digits. This outlook does not include any potential acquisitions or share repurchases. We believe the long-term fundamentals of the housing industry are solid and we are pleased to have heard the recent optimism expressed by many of the public builders. We are also bullish on the long-term opportunities in the commercial and industrial end-markets. Our leadership team, technology tools, and flexible cost structure will ensure that TopBuild will continue to outperform in any environment. Robert?

我們對商業和工業終端市場的預期是銷售額以中低個位數增長。該展望不包括任何潛在的收購或股票回購。我們相信房地產行業的長期基本面是穩固的，我們很高興聽到許多公共建築商最近表達的樂觀情緒。我們也看好商業和工業終端市場的長期機遇。我們的領導團隊、技術工具和靈活的成本結構將確保 TopBuild 在任何環境中都能繼續表現出色。羅伯特？

We see many opportunities in the year ahead to demonstrate the unique advantages of our operating model and take advantage of our multiple avenues for growth. Our focus on continuous improvement in all areas of our company enables us to maximize opportunities at every point in the cycle. Both Installation and Specialty Distribution are performing well, and our advanced ERP system gives us great control and real-time insight into the day-to-day performance of each of our 400 plus branches.

我們看到未來一年有很多機會展示我們運營模式的獨特優勢，並利用我們的多種增長途徑。我們專注於公司所有領域的持續改進，這使我們能夠在周期的每個點上最大限度地利用機會。安裝和專業分銷都表現良好，我們先進的 ERP 系統使我們能夠很好地控制和實時了解我們 400 多個分支機構中每個分支機構的日常績效。

Finally, in our continuing drive to be the Employer of Choice in our industry, TopBuild participated in the national Great Places to Work survey and evaluation, the gold standard of company rankings. We are proud and excited to report that, based on direct employee feedback, the entire TopBuild organization is recognized as a Great Places to Work organization. The direct feedback and ratings from our TopBuild employees speaks to our commitment to fostering a diverse and inclusive workforce where everyone has the opportunity to realize their full potential. Being recognized as a Great Places to Work company is a positive endorsement of the TopBuild culture which we strive to strengthen every day.

最後，在我們不斷努力成為我們行業的最佳雇主的過程中，TopBuild 參與了全國最佳工作場所調查和評估，這是公司排名的黃金標準。我們很自豪和興奮地報告，根據員工的直接反饋，整個 TopBuild 組織被公認為工作場所的最佳組織。我們 TopBuild 員工的直接反饋和評分錶明我們致力於培養多元化和包容性的員工隊伍，讓每個人都有機會充分發揮自己的潛力。被公認為最佳工作場所公司是對我們每天努力加強的 TopBuild 文化的積極認可。

I thank all of my TopBuild teammates for their hard work and dedication. Your continuing focus on working safely to deliver value, quality and service to our customers every day is the key to our continued growth and success.

我感謝所有 TopBuild 隊友的辛勤工作和奉獻精神。您持續專注於安全工作，每天為我們的客戶提供價值、質量和服務，這是我們持續發展和成功的關鍵。

(Operator Instructions) Our first question comes from Joe Ahlersmeyer with Deutsche Bank.

（操作員說明）我們的第一個問題來自德意志銀行的 Joe Ahlersmeyer。

This is Joe Ahlersmeyer from Deutsche Bank. And congrats on the good results in the quarter.

我是德意志銀行的 Joe Ahlersmeyer。並祝賀本季度取得的好成績。

Thanks, Joe.

謝謝，喬。

Thank you.

謝謝。

Maybe if you could start just by talking about your decision not to raise the guidance here given the strong quarter and with broader industry data and commentary sort of supportive of a stabilization? And maybe specifically, could you offer some context to the expectation for slower single-family in the back half, whether that be a specific single-family back half revenue outlook or a single family starts or completions expectation?

考慮到強勁的季度以及更廣泛的行業數據和支持穩定的評論，也許你可以先談談你決定不提高這裡的指導？也許具體來說，您能否提供一些關於後半部分單戶住宅放緩預期的背景信息，無論是特定的單戶家庭後半部分收入前景還是單戶家庭開工或完工預期？

Yes, Joe, this is Rob. So I'd tell you, Q1 came in right about where we expected from what we told you 10 weeks ago when we got together. The back half of the year, still a lot of uncertainty out there. So we didn't feel a need to really adjust the guide there. But we're cautiously optimistic given what we're hearing from the builders, a lot of optimism out there. But we're realistic too, knowing that if you look at starts for single family over the last 2 quarters, it's significantly below where completions have been running. So that's going to work its way through the system. But any meaningful uptick in starts from here will be upside to the forecast we have out there. And I'll just remind you that historically, as a management team, we lean to the conservative side. So like I said, we're cautiously optimistic about the future.

是的，喬，這是羅伯。所以我會告訴你，Q1 正好符合我們 10 週前聚在一起時告訴你的內容的預期。下半年，仍然存在很多不確定性。所以我們覺得沒有必要真正調整那裡的指南。但鑑於我們從建築商那裡聽到的消息，我們持謹慎樂觀的態度，那裡有很多樂觀情緒。但我們也很現實，知道如果你看看過去兩個季度單身家庭的開工情況，就會發現它明顯低於完工的水平。所以這將在整個系統中發揮作用。但是從這裡開始的任何有意義的增長都將有利於我們的預測。我只想提醒你，從歷史上看，作為一個管理團隊，我們傾向於保守的一面。所以就像我說的，我們對未來持謹慎樂觀的態度。

And Joe, this is Robert. Just to add on to that. I mean I think the team in the field has done a really nice job relative to the other opportunities as well, like the light commercial business. what's happening on the commercial and industrial side. And to Rob's point, what we're seeing and hearing from builders, we're seeing more specs coming out of the ground as well. So we think there's a lot of positive signs out there. And to Rob's point, that's only going to be upside to our guidance.

喬，這是羅伯特。只是為了補充這一點。我的意思是，我認為該領域的團隊相對於其他機會也做得非常好，比如輕型商業業務。商業和工業方面正在發生什麼。就 Rob 的觀點而言，我們從建築商那裡看到和聽到的是，我們也看到了更多的規格。所以我們認為那裡有很多積極的跡象。就 Rob 的觀點而言，這只會有利於我們的指導。

All right. Understood. Very encouraging. And maybe could you just talk about any considerations with multifamily the rest of the year? I think there had been some discussion about the product mix requiring more loosefill. So could you maybe just discuss the supply/demand and pricing specifically for loosefill maybe relative to the batts or any other multifamily considerations we should be aware of?

好的。明白了。非常鼓舞人心。也許你能談談今年餘下時間對多戶家庭的任何考慮嗎？我認為已經有一些關於需要更多鬆散填充的產品組合的討論。那麼，您是否可以專門討論鬆散填充的供需和定價，可能與棉絮或我們應該注意的任何其他多戶考慮因素有關？

Yes. I think -- this is Robert again. So I think given the multifamily backlog, we definitely expect that to carry through 2023 definitely into 2024 as well. We're in great shape from a product perspective relative to what's required to loosefill, for multifamily construction, which does require more loosefill installation. So we're in great shape from that perspective.

是的。我想——這又是羅伯特。因此，我認為鑑於多戶家庭的積壓，我們絕對希望它能持續到 2023 年，也肯定會持續到 2024 年。從產品的角度來看，相對於鬆散填充的要求，我們處於良好狀態，對於多戶建築，這確實需要更多的鬆散填充安裝。所以從這個角度來看，我們的狀態很好。

The teams -- one thing that we have great insight into is the bidding and the backlog as well as the bidding rates of what the teams in the field are doing. So we feel really good about the multifamily work in the back half and what we've got bid as well as, we think, some good share gain that we captured in that piece of the business.

團隊 - 我們非常了解的一件事是投標和積壓以及該領域團隊正在做的事情的投標率。因此，我們對後半部分的多戶家庭工作以及我們的投標以及我們認為我們在該業務中獲得的一些良好份額收益感到非常滿意。

Our next question comes from Mike Rehaut with JPMorgan.

我們的下一個問題來自摩根大通的 Mike Rehaut。

First, I just wanted to hit, I guess, driving down a little bit more on the residential side. And my second question will be more on the industrial mechanical side. But on the residential, is there a way to think about what your guidance reflects in terms of an outlook for starts for the year? As you -- Rob, as you referred, so far, first quarter single-family starts around 840, which is well below a year ago. So is there some type of implicit expectation for starts as the year progresses? And if for argument sake starts, let's say, really accelerate in the second quarter, would that be more of a third or a fourth quarter event for you guys in terms of upside?

首先，我只是想打，我想，在住宅區多開一點。我的第二個問題更多是關於工業機械方面的。但在住宅方面，有沒有辦法考慮你的指導意見在今年的開工前景方面反映了什麼？正如你 - 羅伯，正如你所提到的，到目前為止，第一季度的單戶住宅開始於 840 左右，遠低於一年前。那麼隨著時間的推移，是否存在某種隱含的開工預期？如果為了爭論起見，假設在第二季度真的加速，那麼就上行空間而言，這對你們來說更像是第三季度或第四季度的事件嗎？

Yes. And Mike, this is Rob. I mean I think it's really important as we look at the data to break it down between single-family and multifamily, right? So multifamily starts remain strong. The backlog is very strong there. We had a great quarter for multifamily. We've been outbidding multifamily, getting ready for the slowdown we've seen comment on the single-family side. So really happy with the field's work on that side of things. And we expect that backlog to last us through the remainder of this year. And then on the single-family side, like I mentioned earlier, I mean, the start data, it's obvious here the last couple of quarters, starts are running about 24% below where completions were. But we're, like I said, cautiously optimistic given what we're hearing from the builders, more spec homes potentially more starts, and an increase in starts from where we are today would be upside to what we have in our forecast right now.

是的。邁克，這是羅布。我的意思是，我認為在我們查看數據時將其分解為單戶家庭和多戶家庭是非常重要的，對吧？因此，多戶家庭的開工仍然強勁。那裡的積壓非常多。我們有一個適合多戶家庭的好地方。我們一直在出價高於多戶住宅，為我們看到的單戶住宅方面的放緩做好準備。對該領域在這方面的工作非常滿意。我們預計積壓將持續到今年剩餘時間。然後在單戶住宅方面，就像我之前提到的，我的意思是，開工數據，在過去幾個季度這裡很明顯，開工率比完工率低約 24%。但是，就像我說的那樣，考慮到我們從建築商那裡聽到的消息，我們持謹慎樂觀的態度，更多規格的房屋可能會開工更多，而且開工量比我們現在的水平有所增加，這將高於我們目前的預測.

So just to be clear before I hit my second question, what does your forecast reflect? Does it reflect starts remaining at current levels for the rest of the year? Or some type of modest improvement? Any color there?

因此，在我提出第二個問題之前先明確一下，您的預測反映了什麼？它是否反映了今年剩餘時間的開工率保持在當前水平？或者某種適度的改進？那裡有什麼顏色？

Yes, I'd say it's flattish from where we are today. I mean it could be modestly up or down given the range we have out there. But like I said, any meaningful movement in either direction is going to be upside or downside to what we have out there.

是的，我會說從我們今天的情況來看是平淡的。我的意思是，考慮到我們的範圍，它可能會適度上升或下降。但就像我說的那樣，任何一個方向上的有意義的運動都將對我們現有的情況有利或不利。

Okay. Great. And then secondly, on the commercial side or commercial mechanical, you referenced good bidding activity and involvement in various projects into '24. How does that translate in terms of thinking about 2024 versus '23. Would you expect -- given the current trends, would you expect any level of growth? Or any color there would be helpful as well.

好的。偉大的。其次，在商業方面或商業機械方面，您將良好的投標活動和對各種項目的參與提到了'24。這如何轉化為對 2024 年與 23 年的思考。您是否期望——鑑於當前的趨勢，您是否期望任何水平的增長？或者那裡的任何顏色也會有幫助。

Hi, Mike. Robert. So what I would say, and you can translate this into how the future looks. There's just a lot of pent-up work out there on the industrial mechanical side. If you think about -- as we talked about '21, '22, that was a little slower to recover. And now we're seeing those projects come, both new projects, if I think about industrial, onshoring, some things in the food and beverage space.

嗨，邁克。羅伯特。所以我要說的是，你可以將其轉化為未來的樣子。在工業機械方面有很多被壓抑的工作。如果你想想——正如我們談到 21 年、22 年那樣，那恢復起來要慢一些。現在我們看到這些項目來了，都是新項目，如果我考慮工業、外包以及食品和飲料領域的一些事情。

We talked about some big projects on chemical side earlier. But then also on the MRO side, which is that recurring revenue, which what we love about this business, there's a lot of MRO work that's out there scheduled. We see that coming here in '23, going into '24. And given why we're such a big player there and why we benefit so much there is that our fabrication capabilities, how we engineer those products really for refineries, or any other unique situation really allows us to capitalize on the MRO net recurring revenue. So yes, we have a -- you can tell from my comments, a very positive outlook in that industrial mechanical side of the business for those reasons.

我們之前談到了化工方面的一些大項目。但在 MRO 方面，也就是經常性收入，這是我們對這項業務的熱愛，有很多 MRO 工作已經安排好了。我們看到它在 23 年來到這裡，進入 24 年。鑑於我們在那裡如此大的參與者以及為什麼我們受益如此之多，我們的製造能力，我們如何真正為煉油廠設計這些產品，或任何其他獨特的情況確實讓我們能夠利用 MRO 淨經常性收入。所以是的，由於這些原因，我們有一個 - 你可以從我的評論中看出，在該業務的工業機械方面有一個非常積極的前景。

Our next question comes from Adam Baumgarten with Zelman.

我們的下一個問題來自 Adam Baumgarten 和 Zelman。

Just curious what you're seeing from a pricing perspective in the residential business. Has there been any kind of competition sprouting up that's kind of outside of the norm?

只是好奇您從住宅業務的定價角度看到了什麼。有沒有出現任何一種超出常態的競爭？

Yes, Adam, this is Robert. So look, given the tightness of continued tightness of material and labor from that perspective, I think things have been pretty steady relative to that. I think also given where we are in the chain there from a construction cycle, I think the builders realize that value as well. So I'd say nothing out of the ordinary from that perspective. And I think if you look at our results, our field teams have done a great job of walking that balance of volume and working to get price the stuff as well, again, for the value that we're bringing to the customer.

是的，亞當，這是羅伯特。因此，從這個角度來看，鑑於材料和勞動力持續緊張的緊張局勢，我認為相對於此，情況一直相當穩定。我認為，考慮到我們在施工週期中所處的鏈條中的位置，我認為建築商也意識到了這一價值。所以從這個角度來看，我不會說任何不尋常的事情。而且我認為，如果你看看我們的結果，我們的現場團隊在平衡數量和努力為這些東西定價方面做得很好，同樣，為了我們給客戶帶來的價值。

Okay. Got it. Yes. That's good to hear. I guess just also just on the prospect of additional price increases on the fiberglass side, how are you guys thinking about that for the balance of the year?

好的。知道了。是的。聽起來還不錯。我想也只是關於玻璃纖維方面價格進一步上漲的前景，你們如何看待今年餘下時間的情況？

Yes. As we said previously, we expected the inflation to moderate this year. I think there's still some inflation there. I think you also saw some of the previous results from -- the other public fiberglass manufacturers, they talked about price in the first quarter. So we expect it to that be stabilized. But I think it will all depend on the demand curve, what starts to look like the back half of the year. I think that could drive any future action from the cost increase perspective.

是的。正如我們之前所說，我們預計今年通脹將放緩。我認為那裡仍然存在一些通貨膨脹。我想你也看到了一些以前的結果——其他公共玻璃纖維製造商，他們在第一季度談到了價格。所以我們希望它能夠穩定下來。但我認為這將完全取決於需求曲線，即今年下半年開始出現的情況。我認為，從成本增加的角度來看，這可能會推動任何未來的行動。

Our next question comes from Keith Hughes with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Keith Hughes。

You had talked in the prepared comments about commercial industrial being up low to mid-single digits. I believe you're talking about the year here. Is there any differentiation between those 2 in growth rates? And was -- is that the same as the business you talked about being up 8% in the first quarter?

你在準備好的評論中談到商業工業上升到中等個位數。我相信你在這裡談論的是一年。這兩個增長率之間有什麼區別嗎？並且 - 這與您所說的第一季度增長 8% 的業務相同嗎？

Yes. So Keith, this is Rob. So yes, you're correct that when we talk about it being up low to mid-single digits, that's what's baked into our guidance. We obviously exceeded that a little bit. in the first quarter, up 8.2% overall for the company on the commercial industrial front, which was strong on both the install business and on the specialty distribution business. So I think it really a testament to what we've been talking about the strength of our diversified model and diversified end markets, this is going to be a year where we can really show that with the commercial and industrial side of the business growing.

是的。基思，這是羅布。所以是的，你是對的，當我們談論它是低到中個位數時，這就是我們指導中的內容。我們顯然超出了一點。第一季度，公司在商業和工業方面的整體增長 8.2%，這在安裝業務和專業分銷業務方面都很強勁。所以我認為這確實證明了我們一直在談論的多元化模式和多元化終端市場的優勢，今年將是我們可以真正展示業務增長的商業和工業方面的一年。

So we're optimistic for the back half, but we're still sticking with that low to mid-single-digit growth for the year, but obviously had a really great first quarter. As far as segregating between the 2 commercial and industrial, I'd say, there wasn't a meaningful difference between the 2 in the quarter or in our outlook.

所以我們對下半年持樂觀態度，但我們仍然堅持今年的中低個位數增長，但顯然第一季度非常好。至於商業和工業兩者之間的分離，我想說，本季度或我們的展望中兩者之間沒有顯著差異。

Okay. One other question on that. The numbers you are referring to, does that include pricing? And if so, roughly how much?

好的。另一個問題。你指的數字，包括定價嗎？如果是這樣，大概是多少？

Yes, it includes price, but we don't break price down between residential and commercial. Definitely, there's more price flowing through on the residential side, given the higher fiber glass content on that side of things. But we don't have the split of that.

是的，它包括價格，但我們不會將價格細分為住宅和商業。毫無疑問，住宅方面的價格更高，因為這方面的玻璃纖維含量更高。但我們沒有這樣的分歧。

Our next question comes from Phil Ng with Jefferies.

我們的下一個問題來自 Jefferies 的 Phil Ng。

Congrats on another strong quarter. Robert, really appreciate some of the color around some of these bigger projects that you highlighted earlier onshoring, petchem, all that good stuff. Certainly, there's some concerns about tighter letting conditions. I wouldn't imagine you would have much impact this year. But looking out to 2024 and beyond, curious what you're seeing on the bidding activity. Can you kind of help size up big versus small, I would imagine some of your bigger projects, bigger customers wouldn't have much problem getting capital, but maybe the smaller guys and your ability to kind of move stuff around in terms of labor if one part of the segment was a little stronger versus the other? Sorry, a lot to unpack there.

祝賀又一個強勁的季度。羅伯特，真的很欣賞你之前強調的一些更大項目的一些色彩，這些項目包括外包、petchem 和所有這些好東西。當然，對於更嚴格的出租條件存在一些擔憂。我不認為你今年會有很大的影響。但展望 2024 年及以後，你會好奇你在競標活動中看到了什麼。你能幫忙判斷一下大小嗎，我想你的一些更大的項目，更大的客戶在獲得資金方面不會有太大問題，但也許較小的人和你在勞動力方面轉移東西的能力如果該細分市場的一部分比另一部分強一點？抱歉，有很多東西要在那裡打開。

Thanks, Phil. So you're right relative to our build and the ability to move things around if we do see those fluctuations in certain parts of the country. But if you think about the projects, if you think about some of the large projects that I spoke to, I mean, first, let me go on the MRO side, the recurring piece. A lot of that is things that are playing well in the future, funded well in the future and some of those are actually required type of MRO that has to happen if you think about refineries and even food and beverage. So that's part of the positive of that MRO business.

謝謝，菲爾。因此，如果我們確實在該國某些地區看到這些波動，那麼相對於我們的構建和移動事物的能力來說，你是正確的。但是，如果您考慮這些項目，如果您考慮我與之交談過的一些大型項目，我的意思是，首先，讓我談談 MRO 方面，這是經常性的部分。其中很多是未來運行良好、未來資金充足的事情，其中一些實際上是必需的 MRO 類型，如果你考慮煉油廠甚至食品和飲料，就必鬚髮生這種情況。所以這是 MRO 業務的積極部分。

And then relative to new projects, those large projects, and if you think about where our work comes to those projects, most of those projects are already out of the ground. Those are funded and those -- that's one reason we use that term long-running projects because they'll go well into '24 and to '25 even relative to the run rate of those projects. So we haven't seen the impact.

然後相對於新項目，那些大型項目，如果你考慮一下我們在這些項目中的工作，這些項目中的大部分已經開始了。那些是有資金的，而那些——這就是我們使用長期運行項目這個術語的原因之一，因為即使相對於這些項目的運行率，它們也能很好地進入 24 年和 25 年。所以我們還沒有看到影響。

I think, given the mix of business that we have there and the multiple avenues, I think overall, we feel good. And really, even if you think about segments within commercial industrial we're not really oversaturated in 1 area where we think from the onshoring the food and beverage to the industrial, and you could think semiconductor space, EV, liquid natural gas, we're kind of across the gamut there. So -- and a lot of those really acquire infrastructure that's coming. So we feel good about it. We'll watch it constantly, obviously, like everyone else is, but no signs of it here thus far. And also no signs in talking with our bigger customers.

我認為，考慮到我們在那裡的業務組合和多種渠道，我認為總體而言，我們感覺良好。事實上，即使你考慮商業工業中的細分市場，我們在我們認為從食品和飲料到工業的 1 個領域並沒有真正過度飽和，你可以認為半導體空間、電動汽車、液化天然氣，我們'那裡有點跨越色域。所以 - 許多人真正獲得了即將到來的基礎設施。所以我們對此感覺很好。顯然，我們會像其他人一樣不斷觀察它，但到目前為止還沒有任何跡象。也沒有與我們的大客戶交談的跡象。

That's great color, Robert. And then from an IRA Act standpoint, I believe there's some tax credits for the average homeowner and potentially even the builders. Can you kind of expand on those benefits? And do you expect any uplift from that, whether it's this year or going to 2024?

顏色真好，羅伯特。然後從 IRA 法案的角度來看，我相信普通房主甚至可能是建築商都有一些稅收抵免。你能擴展一下這些好處嗎？您是否期望從中得到任何提升，無論是今年還是 2024 年？

Yes. I mean I think they're -- think about the homeowners. So definitely from an energy efficiency and some of the potentially rebate there. Definitely, as people look to maybe reinsulate, if you will, to drive some energy efficiency or some of the rebates, we'll get after that business on our specialty distribution side. And if you think about that smaller contractor that may be doing our work -- doing that work, that's our -- get our primary customer on the specialty distribution side, especially residential.

是的。我的意思是我認為他們 - 想想房主。所以肯定是從能源效率和那裡的一些潛在回扣。當然，當人們希望重新絕緣時，如果你願意的話，以提高能源效率或獲得一些回扣，我們將在我們的專業分銷方面開展這項業務。而且，如果您考慮可能正在做我們工作的那個較小的承包商——做那個工作，那就是我們的——讓我們的主要客戶在專業分銷方面，尤其是住宅。

If you think about some of the other infrastructure piece, Definitely, I mentioned the Salt Lake City Airport as an example, those types of infrastructure projects, that will definitely benefit us some on the industrial commercial side, hard to kind of quantify that. But given, again, we play across that entire space. we'd expect to see some nice tailwind from that as those bills come into play, both again, commercial and industrial.

如果你考慮其他一些基礎設施，當然，我以鹽湖城機場為例，這些類型的基礎設施項目肯定會讓我們在工業商業方面受益，但很難量化。但是，再一次，我們在整個空間中玩耍。隨著這些法案再次在商業和工業領域發揮作用，我們預計會從中看到一些不錯的順風。

Okay, super. And great job in retooling the portfolio to kind of to happen to some of these growth avenues.

好的，超級。在重組投資組合方面做得很好，以適應其中一些增長途徑。

Yes. Thank you, Phil.

是的。謝謝你，菲爾。

Our next question comes from Stephen Kim with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Stephen Kim。

Appreciate all the help and the guidance. Congrats on the quarter. You made an interesting comment near the beginning. I think you said that 1Q when you were talking about the residential, well your overall market or your overall sales, I think you said 1Q came in roughly in line with what you expected. And -- but clearly, in the residential side of the business, the 1Q sales environment and therefore, planning for 2Q by homebuilders and so forth is pretty greatly exceeded the industry's expectations.

感謝所有的幫助和指導。祝賀這個季度。你在開頭做了一個有趣的評論。我想你在談論住宅、整體市場或整體銷售額時說過 1Q，我想你說 1Q 大致符合你的預期。而且——但很明顯，在住宅業務方面，第一季度的銷售環境以及房屋建築商對第二季度的規劃等都大大超出了行業的預期。

So I just want to confirm that you saw that, too, you see that and you hear that as well. And kind of as a follow-on to that, one of the things that we're anticipating is that you might see a little bit more market share shifting to the larger builders because they may have the balance sheets and the open lines of credit to be able to do more of the spec building, which I think you mentioned versus small privates that may have a little bit of difficult time increasing their spec activity given the regional bank stress.

所以我只想確認你也看到了，你看到了，你也聽到了。作為後續行動，我們期待的一件事是您可能會看到更多的市場份額轉移到更大的建築商，因為他們可能擁有資產負債表和開放的信貸額度能夠做更多的規范建設，我想你提到過與小型私人相比，鑑於區域銀行的壓力，小型私人可能很難增加他們的規範活動。

So -- or I guess I'm wondering, is it reasonable to assume that if you see this market share shift that might lead to a slightly lower incremental margin in the residential install side of the business later this year?

所以 - 或者我想我想知道，如果你看到這種市場份額的變化可能導致今年晚些時候業務的住宅安裝方面的增量利潤率略有下降，是否可以合理地假設？

Yes. So I'll start off, Stephen, this is Robert on that and try to hit it. I'm sure Rob will add on some comments as well. So I think on your large production builder coming, I think you're exactly right. I mean, what we're seeing and obviously what the builders are saying around the spec home piece and having the balance sheet to support that, seeing us come out of the ground. Yes, I think you're absolutely right about that. They'll get ahead of the curve here as things stabilize and that allow for some share gain piece of it.

是的。因此，我將開始，斯蒂芬，這是羅伯特，並嘗試擊中它。我相信 Rob 也會添加一些評論。所以我認為你的大型生產建設者即將到來，我認為你是完全正確的。我的意思是，我們所看到的，顯然是建築商圍繞規格住宅所說的話，並有資產負債表來支持它，看到我們從地面出來。是的，我認為你是完全正確的。隨著事情的穩定，他們將在這裡走在曲線的前面，並允許從中獲得一些份額。

I think given the material situation, the labor situation, our relationships with those production builders, we're not too concerned from a margin perspective if that shift happens or that share shift happens with the production builders. So no concern from that perspective. Back to your Q1 comment, and then I'll hand over to Rob if he's got any add-ons. I think whenever we say in line, we saw what happened to single family. It was pretty flat.

我認為，考慮到物質情況、勞動力狀況、我們與那些生產建設者的關係，如果這種轉變發生或生產建設者發生份額轉移，我們並不太擔心從利潤率的角度來看。所以從這個角度來說不用擔心。回到您的 Q1 評論，然後如果他有任何附加組件，我將移交給 Rob。我想每當我們排隊時，我們都會看到單身家庭發生了什麼。它很平坦。

Multifamily was up really, really healthy given what our teams in the field have done exactly what we expected, talked about distribution volumes, commercial industrial is strong, what we expected, a little bit down on the residential distribution side given some lowered inventories by the smaller contractors as well as the shift in multi-family, and then we talked about came in as we thought those were some of the dynamics we thought would play out in the quarter, and they did.

考慮到我們在該領域的團隊所做的完全符合我們的預期，多戶住宅的增長真的非常健康，談到分銷量，商業工業很強勁，正如我們所預期的那樣，由於一些庫存下降，住宅分銷方面略有下降較小的承包商以及多戶家庭的轉變，然後我們談到了進來，因為我們認為這些是我們認為會在本季度發揮作用的一些動態，他們確實做到了。

Yes. Yes, Stephen, I'd just add, I mean, I think when we made that comment, we're talking in total, right, we're about where we expected. I'd say on the installed side a little better from a volume perspective. The team did a great job getting out there, getting a lot of multifamily work. And like we mentioned in the prepared remarks, residential volume on the specialty distribution side down slightly.

是的。是的，斯蒂芬，我只想補充一點，我的意思是，我認為當我們發表評論時，我們正在談論總的來說，對，我們在我們預期的地方。從數量的角度來看，我會說在安裝方面好一點。該團隊在那裡做得很好，得到了很多多戶家庭的工作。就像我們在準備好的評論中提到的那樣，專業分銷方面的住宅量略有下降。

We saw people taking inventory out, anticipating the slowdown as well as with the shift in multifamily mix, some of those smaller contractors that go for residential products, especially distribution had a little bit less share in the quarter. So those are the 2 things. But overall, like I said, right in line with our expectations for the quarter.

我們看到人們清空庫存，預計經濟放緩以及多戶家庭組合的轉變，一些從事住宅產品，尤其是分銷的小型承包商在本季度的份額有所減少。所以這是兩件事。但總體而言，正如我所說，符合我們對本季度的預期。

If I could sort of follow up on that, your comments there on the residential side within spec distro. I think you said that -- well, first of all, would it be right to guess that the residential side of the business within spec distribution was down maybe about 4%, if that's wrong, if you could correct me, that would be great. But then you, I think, attributed resi being weaker than the commercial and industrial due to, I think, small -- your small installation -- your smaller customers, basically other small installers and whatnot, reducing inventory. I'm wondering are those inventories in your estimation rightsized from a level that was too high? Or maybe given what we've seen here in 1Q sales for homes, could we be maybe too low now? And then you said also multifamily mix impacted it. Could you talk a little bit about why and how multifamily the mix is impacted negatively? What is it about the multi-fam versus the single-fam that particularly affects the sales?

如果我可以對此進行跟進，請在規範發行版中的住宅方面發表您的評論。我想你是這麼說的——好吧，首先，猜測規範分銷業務的住宅方面可能下降了大約 4% 是否正確，如果那是錯誤的，如果你能糾正我，那就太好了.但是，我認為，你認為 resi 比商業和工業弱，因為我認為，小 - 你的小安裝 - 你的小客戶，基本上是其他小安裝商等等，減少了庫存。我想知道您估計中的那些庫存是否從過高的水平調整？或者考慮到我們在第一季度房屋銷售中看到的情況，我們現在可能太低了嗎？然後你說多戶家庭組合也影響了它。您能否談談多戶家庭組合為何以及如何受到負面影響？多家庭與單家庭對銷售的影響最大的是什麼？

Yes. Stephen, this is Robert. So I'll try to get all those answered here. Relative to the -- talking about the special distribution, residential yes, low single digits, which, by the way, given if you look around the industry stuff, we think execution in the field on that side of the business was fabulous. So the team did a great job in the other areas, other products, accessory products, some of that, so we think fabulous results from how the team handled that shift on the multifamily side.

是的。斯蒂芬，這是羅伯特。所以我會盡量讓所有這些都在這裡得到回答。相對於 - 談論特殊分配，住宅是，低個位數，順便說一下，如果你環顧行業的東西，我們認為在業務的那一邊的現場執行是非常棒的。所以團隊在其他領域、其他產品、配件產品等方面做得很好，所以我們認為團隊如何處理多戶家庭方面的這種轉變會取得驚人的結果。

So yes, the smaller contractors, which we get after on that residential and specialty distribution side, they're probably participating less in that multifamily work. They're more maybe the custom builder, the smaller regional builder, the repair/remodel type work. So that's what that specific kind of smaller contractor are we going after.

所以是的，我們在住宅和專業分銷方面得到的較小的承包商，他們可能較少參與多戶家庭工作。他們更可能是定制建築商、較小的區域建築商、維修/改造類型的工作。這就是我們追求的那種特定類型的小型承包商。

If you think about the multifamily, right? So you got -- and I also kind of speak as to where we picked up share there on the install side. But if you think about the multifamily side, major fluctuations in the amount of material needed, the amount of labor needed in a week's time frame or something like that. That it's harder to obviously react to that, and that's why we're able to move -- when we talk about moving equipment, material, labor around that plays well for us on the multifamily.

如果您考慮多戶家庭，對嗎？所以你得到了 - 我也談到了我們在安裝方面在那裡獲得份額的地方。但是如果你考慮多戶家庭方面，所需材料數量的重大波動，一周時間範圍內所需的勞動力數量或類似的東西。顯然很難對此做出反應，這就是我們能夠搬家的原因——當我們談論移動設備、材料和勞動力時，這對我們在多戶家庭中發揮了很好的作用。

And then I'm sure as you've seen, there's a lot of that multifamily work today coming up, but it also has -- a lot of it has this light commercial work with where the first for is could be retail and then you got the multifamily above it. And so with the fact of how we're playing out like commercial and multifamily, it's allowed us to pick up some nice projects due to that ability we have across multiple projects, if you will.

然後我敢肯定，正如你所看到的，今天有很多多戶家庭的工作即將進行，但它也有 - 很多都是這種輕型商業工作，其中第一個可能是零售，然後你上面有多戶家庭。因此，考慮到我們在商業和多戶家庭中的表現，如果您願意的話，由於我們具有跨多個項目的能力，它使我們能夠挑選一些不錯的項目。

Our next question comes from Carl Reichardt with BTIG.

我們的下一個問題來自 BTIG 的 Carl Reichardt。

Robert, you talked about the TAM for the business overall being $17.5 billion. What percentage of that do you think is the MRO recurring revenue side?

羅伯特，您談到整個業務的 TAM 為 175 億美元。您認為 MRO 經常性收入方面的百分比是多少？

Yes. So as we think about, you've probably seen what we published around that commercial industrial space. We call that opportunity, I'd say, call it, $5.5 billion to $6 billion type of total addressable market. I'd say if you look at our business and stuff, the MRO is about 50% on the industrial side.

是的。因此，正如我們所想的那樣，您可能已經看到了我們圍繞該商業工業領域發布的內容。我們稱這個機會為 55 億至 60 億美元的總潛在市場。我想說，如果你看看我們的業務和東西，工業方面的 MRO 大約佔 50%。

And so -- and we've probably done a really good job getting our fabrication capabilities of getting after that work. So I'd say is that it maybe a little less than 50% of the total TAM. I think it probably is taking to the exact number. I just know how we're kind of oriented towards that, and how we -- given our capabilities in fabrication, we've tried to make sure and get after that opportunity and gain share in that space.

所以——我們可能在獲得完成這項工作的製造能力方面做得非常好。所以我想說的是，它可能略低於總 TAM 的 50%。我認為它可能會達到確切的數字。我只知道我們是如何面向這一點的，以及我們如何 - 鑑於我們的製造能力，我們試圖確保並抓住這個機會並在該領域獲得份額。

Okay. And then, Rob, you talked about the working capital as a percentage of sales target going down to 12% to 14%. What are the key drivers to get that number down? I recognize there's probably some seasonality in there? And then as you look beyond '23, where do you think that number ultimately can go? What would be your target?

好的。然後，Rob，你談到營運資金佔銷售目標的百分比下降到 12% 到 14%。降低這個數字的關鍵驅動因素是什麼？我知道那裡可能有一些季節性？然後，當您展望 23 年後，您認為這個數字最終會走向何方？你的目標是什麼？

Yes. I would say our long-term target is still in that 12% to 14% range. I think the opportunity right now lies a little bit on the AR side, but also on the inventory side. So with things potentially slowing down here in the back half of the year, there's definitely an opportunity to squeeze some of that working capital out and generate strong free cash flow.

是的。我會說我們的長期目標仍然在 12% 到 14% 的範圍內。我認為現在的機會有點在 AR 方面，但也在庫存方面。因此，由於今年下半年這裡的情況可能會放緩，因此肯定有機會擠出部分營運資金並產生強勁的自由現金流。

One of the great stories of our first quarter was our free cash flow. We generated $154 million of free cash flow, up 117% for the year and for the full year, with the numbers we have out there, we should be north of $600 million of free cash flow. So we feel really good about that, and we think 12% to 14% will probably be closer to the high end of that as we close out this year, but long term, towards the middle of that.

我們第一季度的一個偉大故事是我們的自由現金流。我們產生了 1.54 億美元的自由現金流，全年增長 117%，根據我們現有的數字，我們的自由現金流應該超過 6 億美元。所以我們對此感覺非常好，我們認為 12% 到 14% 可能會在我們今年結束時接近高端，但從長遠來看，接近中間。

There are no further questions at this time. I would like to turn the floor back over to President and CEO, Robert Buck, for closing comments.

目前沒有其他問題。我想將發言權轉回給總裁兼首席執行官羅伯特·巴克 (Robert Buck)，以徵求結束意見。

Thank you for joining us this morning. We look forward to reporting Q2 results in early August.

感謝您今天早上加入我們。我們期待在 8 月初報告第二季度的結果。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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。