(BLDR) 2022 Q2 法說會逐字稿

(Operator Instructions) Good day, and welcome to the Builders FirstSource Second Quarter 2022 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by the management and the question-and-answer session. (Operator Instructions)

（操作員說明）您好，歡迎參加 Builders FirstSource 2022 年第二季度收益電話會議。今天的電話會議預計持續約 1 小時，包括管理層的發言和問答環節。 （操作員說明）

I'd now like to turn the call over to Mr. Michael Neese, Senior Vice President, Investor Relations for Builders FirstSource. Please go ahead, sir.

我現在想將電話轉給 Builders FirstSource 投資者關係高級副總裁 Michael Neese 先生。請繼續，先生。

Thank you, Katie. Good morning, and welcome to our second quarter 2022 Earnings Call. With me on the call are Dave Flitman, our CEO; and Peter Jackson, our CFO. Today, we will review our record second quarter results for 2022. The second quarter press release and investor presentation for today's call are available on our website at investors.bldr.com. We will refer to several slides from the investor presentation during our call.

謝謝你，凱蒂。早上好，歡迎參加我們的 2022 年第二季度財報電話會議。與我通話的還有我們的首席執行官戴夫·弗利特曼（Dave Flitman）；和我們的首席財務官彼得傑克遜。今天，我們將回顧我們創紀錄的 2022 年第二季度業績。今天電話會議的第二季度新聞稿和投資者介紹可在我們的網站 Investors.bldr.com 上查閱。我們將在電話會議期間參考投資者演示文稿中的幾張幻燈片。

The results discussed today include GAAP and non-GAAP results adjusted for certain items. As a reminder, our adjusted EPS calculation excludes amortization of intangibles. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation for the most directly comparable GAAP measures. You can find the reconciliation of these non-GAAP measures to the corresponding GAAP measures were applicable and a discussion of why we believe they could be useful to investors in our earnings press release, SEC filings and presentation.

今天討論的結果包括針對某些項目調整的 GAAP 和非 GAAP 結果。提醒一下，我們調整後的每股收益計算不包括無形資產的攤銷。我們提供這些非公認會計原則的結果僅供參考，不應孤立地考慮最直接可比的公認會計原則措施。您可以在我們的收益新聞稿、SEC 文件和演示文稿中找到這些非 GAAP 措施與相應 GAAP 措施的對賬，並討論為什麼我們認為它們可能對投資者有用。

Our remarks in the press release, presentation and on this call contain forward-looking and cautionary statements within the meaning of the Private Securities Litigation Reform Act and projections of future results. Please review the forward-looking statements section in today's press release and in our SEC filings for various factors that could cause our actual results to differ from forward-looking statements and projections.

我們在新聞稿、演示文稿和本次電話會議中的評論包含《私人證券訴訟改革法案》含義內的前瞻性和警示性聲明以及對未來結果的預測。請查看今天新聞稿和我們向美國證券交易委員會提交的文件中的前瞻性陳述部分，了解可能導致我們的實際結果與前瞻性陳述和預測不同的各種因素。

With that, I'll turn the call over to Dave.

有了這個，我會把電話轉給戴夫。

Thanks, Mike. Good morning, everyone, and thanks for joining our call. We ended the first half of the year on strong footing, delivering robust results during the first quarter with that positive momentum continuing throughout the second quarter in which we achieved sales growth of 24% and adjusted EBITDA growth of 80% in the face of difficult comps in a challenging operating environment.

謝謝，邁克。大家早上好，感謝您加入我們的電話會議。我們以強勁的基礎結束了今年上半年，在第一季度取得了強勁的業績，並且在整個第二季度繼續保持這種積極勢頭，面對困難的競爭，我們實現了 24% 的銷售額增長和 80% 的調整後 EBITDA 增長在充滿挑戰的運營環境中。

These outstanding achievements are a direct result of having strong alignment around the clear strategy and the focused execution against that strategy, driven by the hard work and dedication of our approximately 30,000 team members and their commitment to provide outstanding service to our customers.

這些傑出的成就是圍繞明確的戰略和針對該戰略的集中執行的直接結果，這得益於我們大約 30,000 名團隊成員的辛勤工作和奉獻精神以及他們為客戶提供卓越服務的承諾。

On Slide 3, our strategic priorities continue to be: organically grow our value-added products and services, drive operational excellence, continue to build our high-performing culture and pursue strategic tuck-in acquisitions.

在幻燈片 3 上，我們的戰略重點仍然是：有機地發展我們的增值產品和服務，推動卓越運營，繼續建立我們的高績效文化並追求戰略性收購。

On Slide 4, we outline how we continue to execute against our strategic priorities this quarter. Specifically, we delivered record results in the quarter through expanding capacity, increasing value-added product sales and increasing productivity. We continue to leverage our BFS 1-TEAM operating system with a focus on cost containment to drive strong P&L leverage and bottom line performance.

在幻燈片 4 中，我們概述了我們如何繼續執行本季度的戰略重點。具體而言，我們通過擴大產能、增加增值產品銷售和提高生產力在本季度取得了創紀錄的業績。我們繼續利用我們的 BFS 1-TEAM 操作系統，專注於成本控制，以推動強大的損益槓桿和底線績效。

We maintained our industry leadership by successfully navigating a challenging industry and macroeconomic environment. We strategically deployed capital toward accretive inorganic growth opportunities as highlighted by our most recent acquisition, HomCo. Through July, we have repurchased approximately $1 billion of the $2 billion share repurchase authorization, our Board approved in May.

通過成功應對充滿挑戰的行業和宏觀經濟環境，我們保持了行業領先地位。正如我們最近收購的 HomCo 所強調的那樣，我們戰略性地將資本部署到了增值的無機增長機會。截至 7 月，我們已在 20 億美元的股票回購授權中回購了約 10 億美元，董事會於 5 月批准了該授權。

Turning to Slide 5. We continue to believe it is important to assess our results using a base business methodology to better appreciate the underlying strength and profitability of our company by normalizing commodity volatility. As a reminder, our base business definition assumes static margins and commodity prices at $400 per thousand board feet. We are maintaining our full year guidance on our base business EBITDA of $2.2 billion, as Peter will discuss in a moment.

轉到幻燈片 5。我們仍然認為，使用基本業務方法評估我們的結果非常重要，以便通過使商品波動正常化來更好地了解我們公司的潛在實力和盈利能力。提醒一下，我們的基本業務定義假設靜態利潤和商品價格為每千板英尺 400 美元。正如彼得稍後將討論的那樣，我們將維持我們對基礎業務 EBITDA 22 億美元的全年指導。

Turning to Slide 6. As we outlined in our Investor Day last December, I want to reaffirm our expected performance by year-end 2025 given our assumption of average single-family starts growth in the low single digits through that time. We expect our base business to deliver a 10% top line CAGR and a 15% adjusted EBITDA CAGR.

轉到幻燈片 6。正如我們在去年 12 月的投資者日中概述的那樣，我想重申我們在 2025 年年底之前的預期表現，因為我們假設當時平均單戶家庭開工增長率為低個位數。我們預計我們的基礎業務將實現 10% 的頂線複合年增長率和 15% 的調整後 EBITDA 複合年增長率。

Importantly, this represents an average 50 basis point per year expansion in adjusted EBITDA margin for a total of 200 basis points of improvement by 2025 when compared to 2021. And as we deliver this performance, we expect to have between $7 billion and $10 billion of capital to deploy through 2025. That includes money for this year's planned capital investments in innovation and organic growth, along with potential additional M&A and share repurchases. We have already deployed a total of $2.8 billion of capital since we gave this guidance last December. And in the last 12 months, we have repurchased 25% of our shares outstanding.

重要的是，這意味著調整後 EBITDA 利潤率每年平均增長 50 個基點，與 2021 年相比，到 2025 年總共提高 200 個基點。隨著我們實現這一業績，我們預計將有 70 億至 100 億美元的到 2025 年部署的資本。這包括今年計劃在創新和有機增長方面的資本投資，以及潛在的額外併購和股票回購。自去年 12 月發布此指導以來，我們已經部署了總計 28 億美元的資金。在過去的 12 個月中，我們回購了 25% 的流通股。

Looking at our record second quarter results on Slide 7 in more detail. We delivered strong core organic growth of 12%. Our single-family core organic growth was nearly 16%, again exceeding a single-family starts decline of approximately 3.4%.

更詳細地查看我們在幻燈片 7 上創紀錄的第二季度業績。我們實現了 12% 的強勁核心有機增長。我們的單戶核心有機增長接近 16%，再次超過單戶開工下降約 3.4%。

Tough comps against 2021 results impacted year-over-year growth in our multifamily and R&R segments, leaving our year-over-year growth essentially flat. Core organic sales grew 12.2%, while value-added core organic sales grew by 32% compared to the prior year period. This highlights once again the strength of our strategy and that our team continues to execute it very well.

對 2021 年業績的艱難對比影響了我們的多戶家庭和 R&R 部門的同比增長，使我們的同比增長基本持平。核心有機銷售額增長 12.2%，而增值核心有機銷售額同比增長 32%。這再次突顯了我們戰略的優勢，並且我們的團隊繼續很好地執行它。

Overall, we delivered record sales of nearly $7 billion in the second quarter and generated $1.5 billion of adjusted EBITDA with a record margin of 21.8%. These results were driven by solid demand for housing across our markets, ongoing productivity initiatives and pricing discipline in an improving but still supply-constrained environment.

總體而言，我們在第二季度實現了近 70 億美元的創紀錄銷售額，並產生了 15 億美元的調整後 EBITDA，利潤率達到創紀錄的 21.8%。這些結果是由我們市場對住房的強勁需求、持續的生產力舉措以及在改善但仍然供應受限的環境中的定價紀律推動的。

As we turn to M&A on Slide 8, we remain focused on executing tuck-in M&A that delivers a high return. Over the past 1.5 years, we completed 10 acquisitions, reporting $1.6 billion of capital, aimed at building out our value-added customer offerings, investing in our digital transformation and further scaling our distribution network.

當我們在幻燈片 8 中轉向併購時，我們仍然專注於執行可帶來高回報的整合併購。在過去的 1.5 年裡，我們完成了 10 次收購，報告了 16 億美元的資本，旨在建立我們的增值客戶產品，投資於我們的數字化轉型並進一步擴大我們的分銷網絡。

In July, we acquired HomCo, a lumber and hardware supplier in Flagstaff, Arizona, and are excited to welcome these new team members to the Builders FirstSource family. HomCo had net sales of approximately $44 million in 2021. This acquisition further demonstrates the fourth pillar of our strategy, M&A. Building upon the strong reputation and presence of tuck-in targets while leveraging our BFS 1-TEAM operating system to swiftly integrate these new businesses.

7 月，我們收購了位於亞利桑那州弗拉格斯塔夫的木材和硬件供應商 HomCo，並很高興地歡迎這些新團隊成員加入 Builders FirstSource 大家庭。 HomCo 2021 年的淨銷售額約為 4400 萬美元。此次收購進一步證明了我們戰略的第四大支柱，即併購。在利用我們的 BFS 1-TEAM 操作系統快速整合這些新業務的同時，建立強大的聲譽和目標的存在。

We have spent approximately $230 million on M&A so far this year and we expect to invest at least $500 million for the full year of 2022. We remain committed to allocating capital in a disciplined manner that drives long-term value creation for our shareholders.

今年到目前為止，我們已經在併購上花費了大約 2.3 億美元，我們預計在 2022 年全年投資至少 5 億美元。我們仍然致力於以有紀律的方式分配資本，為股東創造長期價值。

Now let's shift gears and cover our digital strategy on Slide 9. Our momentum on our digital transformation of the homebuilding industry is accelerating. Foundational initiatives such as standardizing our house plan intake and bid process continue to progress well. We completed agreements with two new customers for our configurable visualization tool. Collectively, Creative Homes of Minnesota and Snap ADU of California complete over 300 starts annually. And we now have customers responsible for more than 5,000 starts using paradigm visualizer.

現在讓我們換個角度，在幻燈片 9 中介紹我們的數字化戰略。我們對住宅建築行業的數字化轉型的勢頭正在加速。標準化我們的房屋計劃接收和投標流程等基本舉措繼續取得良好進展。我們與兩個新客戶就我們的可配置可視化工具達成了協議。每年，明尼蘇達州的 Creative Homes 和加利福尼亞州的 Snap ADU 共同完成 300 多次啟動。我們現在有超過 5,000 次使用範例可視化器的客戶負責。

We recently hit an important milestone in our technology development by successfully integrating the material takeoff, structural design and visualization models into one process. This means when selections are made in a lock specific model, such as choosing a siding type in color or expanding from a two to a three car garage is reflected in the material list in real time. Pricing of the base house and options can be made available in the visualization experience and reflected in the material list.

最近，我們成功地將材料起飛、結構設計和可視化模型集成到一個流程中，從而在我們的技術開發中取得了一個重要的里程碑。這意味著當在鎖具特定模型中進行選擇時，例如選擇顏色的壁板類型或從兩車位擴展到三車位車庫會實時反映在材料列表中。基本房屋的定價和選項可以在可視化體驗中提供，並反映在材料清單中。

Our three dimensional models also provide the basis for offering Building Information Modeling, or BIM services to our customers, allowing them to gain project efficiencies by resolving construction conflicts in the digital world, instead of at the job site. This important capability strikes at the heart of the efficiency gains we believe our platform will bring to the homebuilding industry.

我們的三維模型還為向我們的客戶提供建築信息模型或 BIM 服務提供了基礎，使他們能夠通過解決數字世界而不是工作現場的施工衝突來提高項目效率。這種重要的能力是我們相信我們的平台將為住宅建築行業帶來的效率提升的核心。

Also, we have ongoing BIM pilots with one large national builder and two custom builders. Our pilot with Front Light Building Company in South Carolina is highlighted on their company website and will help you understand how our technologies and services are helping homebuilders today.

此外，我們正在與一名大型國家建築商和兩名定制建築商進行 BIM 試點。我們在南卡羅來納州的 Front Light Building Company 的試點在他們的公司網站上進行了突出顯示，將幫助您了解我們的技術和服務如何幫助當今的房屋建築商。

Turning to productivity. We delivered $40 million in savings in the second quarter and we continue to expect to exceed $100 million in savings for the full year 2022 by driving improvement projects and leveraging our BFS 1-TEAM operating system. Over the long term, we are targeting 3% to 5% of annual productivity improvement as our teams work together to leverage best practices and technology, allowing us to become faster and more efficient at serving our customers. We are accelerating our efforts in this important area to ensure we not only hit our financial targets, but to also make sure our industry-leading platform is as efficient as possible.

轉向生產力。我們在第二季度節省了 4000 萬美元，通過推動改進項目和利用我們的 BFS 1-TEAM 操作系統，我們繼續預計在 2022 年全年節省超過 1 億美元。從長遠來看，我們的目標是每年提高 3% 到 5% 的生產力，因為我們的團隊共同努力利用最佳實踐和技術，使我們能夠更快、更高效地為客戶服務。我們正在加快在這一重要領域的努力，以確保我們不僅達到我們的財務目標，而且確保我們行業領先的平台盡可能高效。

Increasingly, we are being asked what's different about BFS today versus 15 years ago during the last housing downturn. On Slide 10, we would like to point out that the company has seen a dramatic increase in scale and share, and BFS is now more than 12x larger and 60x more profitable than it was during the last downturn.

越來越多的人問我們，今天的 BFS 與 15 年前上一次房地產低迷時期有何不同。在幻燈片 10 中，我們想指出，該公司的規模和份額都出現了顯著增長，BFS 現在的規模比上一次低迷時期擴大了 12 倍以上，盈利能力提高了 60 倍。

We are a leaner, more efficient, consolidated company. This increased scale has enabled the company to remove more than $400 million of annual run rate cost through several large combinations, including the integrations of ProBuild and stock building supply as well as our merger with BMC.

我們是一家更精簡、更高效、更整合的公司。這種擴大的規模使公司能夠通過幾個大型組合消除超過 4 億美元的年度運行成本，包括 ProBuild 和庫存建築供應的整合以及我們與 BMC 的合併。

We are operating as a consolidated platform, not as a decentralized organization, providing better visibility, alignment and greater efficiency than other players in our space. We've improved processes and reduced costs to more efficiently serve our distribution network of more than 560 locations. We optimized our footprint by closing 120 locations and repurposing numerous other facilities.

我們作為一個綜合平台運營，而不是一個分散的組織，與我們領域的其他參與者相比，提供更好的可見性、一致性和更高的效率。我們改進了流程並降低了成本，以更有效地服務於我們超過 560 個地點的分銷網絡。我們通過關閉 120 個地點並重新利用眾多其他設施來優化我們的足跡。

Since 2006, we have increased our value-added components and no-work facilities to over 200. That's nearly 6x. We have grown our manufacturing capabilities as we have invested in high-speed door lines trust automation and robotics, which have improved our variable cost to serve and reduced our dependency on skilled labor.

自 2006 年以來，我們已將增值組件和非工作設施增加到 200 多個。這幾乎是 6 倍。隨著我們對高速門線信任自動化和機器人技術的投資，我們提高了製造能力，這提高了我們的可變服務成本並減少了我們對熟練勞動力的依賴。

A good example of this would be our recent announcement of our 2-year partnership with Household Design on the development and recent startup of our first fully robotic for trust manufacturing line at our Villa Rica, Georgia facility. We have also contracted for an additional 8 fully robotic lines including 4 roof trust lines.

這方面的一個很好的例子是我們最近宣布與 Household Design 建立為期 2 年的合作夥伴關係，在我們佐治亞州維拉里卡的工廠開發和最近啟動我們的第一條全機器人信託生產線。我們還與另外 8 條全機器人生產線簽訂了合同，其中包括 4 條屋頂信任線。

We have improved our expense structure, making approximately 70% of our SG&A variable. We have leveraged the size and scale of our business through strategic direct and indirect spend, enabling BFS to more efficiently serve our customers. And we have dramatically improved our cash generation, capital structure and leverage, providing us with significant financial flexibility.

我們已經改進了我們的費用結構，使我們大約 70% 的 SG&A 可變。我們通過戰略性直接和間接支出利用了我們業務的規模和規模，使 BFS 能夠更有效地為我們的客戶服務。我們顯著改善了我們的現金生成、資本結構和槓桿率，為我們提供了顯著的財務靈活性。

While we have seen strong demand through July that weighed near-term results, we fully recognize the current industry dynamics that are beginning to play out. We've heard from our customers that demand is slowing due to higher mortgage rates and overall affordability concerns. We remain confident that no matter what market conditions we face, we will remain nimble and balance any short-term dislocation, positioning BFS for long-term success and accelerating our market leadership.

雖然我們看到 7 月份的強勁需求影響了近期業績，但我們完全認識到當前的行業動態正在開始顯現。我們從客戶那裡聽說，由於更高的抵押貸款利率和整體負擔能力問題，需求正在放緩。我們仍然有信心，無論我們面臨什麼樣的市場條件，我們都將保持敏捷並平衡任何短期錯位，將 BFS 定位為長期成功並加速我們的市場領導地位。

Turning to Slide 11. In the scenario of a highly challenged market where housing starts are down more than 20%, we have several levers to pull to drive outperformance, including effectively managing costs through our variable expense structure to flex expenses with demand, optimizing capacity and further streamlining our footprint, reducing discretionary spend accelerating productivity projects, taking appropriate headcount actions and moderating capital expenditures. Our industry-leading platform led by our strong and experienced team is generating exceptional results, which we believe positions us well for any market environment, anchored by the strength of our balance sheet with no debt maturities until 2030.

轉到幻燈片 11。在新屋開工率下降超過 20% 的高度挑戰市場的情況下，我們有幾個槓桿可以推動表現出色，包括通過我們的可變費用結構有效管理成本，以根據需求調整費用，優化產能並進一步精簡我們的足跡，減少可自由支配的支出，加快生產力項目，採取適當的員工人數行動並減少資本支出。我們由我們強大且經驗豐富的團隊領導的行業領先平台正在產生非凡的成果，我們相信這使我們能夠在任何市場環境中都處於有利地位，這得益於我們的資產負債表實力，直到 2030 年都沒有債務到期。

We're committed to investing to capture growth organically and through tuck-in M&A. Although there will certainly be some challenges over the near term, we remain very optimistic on the prospects for our industry over the long term. I am highly confident in our ability to outperform the market in any scenario. And given our bulletproof balance sheet, expect us to lean in opportunistically on M&A in a more challenged market.

我們致力於投資以有機地和通過併購獲得增長。儘管短期內肯定會有一些挑戰，但我們對行業的長期前景仍然非常樂觀。我對我們在任何情況下都能跑贏市場的能力充滿信心。鑑於我們穩健的資產負債表，預計我們會在更具挑戰性的市場中投機取巧地進行併購。

So to sum up, we will continue to execute our strategy gain share and deliver value to our shareholders in any environment. Our people are the building blocks of our company and our my inspiration that come to work every day to continue the evolution and growth of our world-class company. I want to recognize Brent Goodwin, an exceptional team member who for the past 4 years, has worked as an inventory control analyst at our Raleigh, North Carolina Yard and Millwork facility.

因此，總而言之，我們將繼續執行我們的戰略，在任何環境中獲得份額並為我們的股東創造價值。我們的員工是我們公司的基石，也是我們每天工作的靈感來源，以繼續我們世界級公司的發展和發展。我要感謝 Brent Goodwin，他是一位傑出的團隊成員，在過去的 4 年裡，他一直在北卡羅來納州羅利市和 Millwork 工廠擔任庫存控制分析師。

Raleigh has been one of the strongest housing markets in the country for quite some time with more than 60 families moving there each day. For the past several years, rents contributions are a key reason why our Raleigh Millwork facility has become the go-to supplier for homebuilders in this burgeoning market.

羅利在相當長的一段時間內一直是該國最強勁的房地產市場之一，每天有 60 多個家庭搬到那裡。在過去的幾年裡，租金貢獻是我們的羅利木工工廠成為這個新興市場中住宅建築商首選供應商的一個關鍵原因。

Beginning in late Q3 2021, Brent's location began experiencing shortages across multiple millwork product categories. Over the past 2 years, Brent has been relentless in developing creative solutions to help augment inventory, keeping our stock levels consistent to ensure minimal delays for customers. What makes Brent's work all the more impressive is the fact that he's been able to do it all while during first a demolition and then an expansion of this location's main storage warehouse. I want to thank Brent for his many contributions in helping keeping Raleigh's builders on track amid tight supply constraints and strong homebuyer demand. We are fortunate to have Brent on our team.

從 2021 年第三季度末開始，布倫特的位置開始出現多個木製品產品類別的短缺。在過去的 2 年中，布倫特一直不懈地開發創造性的解決方案來幫助增加庫存，保持我們的庫存水平一致，以確保客戶的延誤最小化。讓布倫特的工作更令人印象深刻的是，他能夠在首先拆除並擴建該地點的主要存儲倉庫期間完成所有這些工作。我要感謝布倫特為幫助羅利的建築商在供應緊張和購房者需求強勁的情況下保持正軌所做的許多貢獻。我們很幸運有布倫特加入我們的團隊。

And I again want to thank all of our team members for their continued tremendous work and focus in satisfying the needs of our customers. I'll now turn the call over to Peter to discuss our financial results for the second quarter.

我要再次感謝我們所有的團隊成員，感謝他們持續付出的巨大努力，並專注於滿足客戶的需求。我現在將電話轉給彼得討論我們第二季度的財務業績。

Thank you, Dave, and good morning, everyone. We are excited to continue our exceptional track record of financial performance. We navigated through a complex supply and demand environment to produce record second quarter net sales, gross margin, net income and adjusted EBITDA.

謝謝你，戴夫，大家早上好。我們很高興能夠繼續我們卓越的財務業績記錄。我們在復雜的供需環境中駕馭，創造了創紀錄的第二季度淨銷售額、毛利率、淨收入和調整後的 EBITDA。

I am also pleased to report that we have again demonstrated our ability to deliver strong cash flow results by generating approximately $900 million in free cash flow this quarter. Our accomplishments have come through disciplined operational management and solid execution of our strategic priorities. At the same time, we further strengthened our balance sheet by extending debt maturities and returned approximately $1 billion to shareholders through buybacks.

我也很高興地報告，我們通過本季度產生約 9 億美元的自由現金流再次證明了我們提供強勁現金流結果的能力。我們的成就來自於紀律嚴明的運營管理和我們戰略重點的紮實執行。與此同時，我們通過延長債務期限進一步加強了我們的資產負債表，並通過回購向股東返還了約 10 億美元。

I will cover 3 topics with you this morning. First, I'll review our Q2 results Second, I'll update you on our capital deployment efforts. And finally, I will touch on our updated guidance for full year 2022.

今天早上我將與您討論 3 個主題。首先，我將回顧我們的第二季度業績。其次，我將向您介紹我們的資本部署工作。最後，我將談談我們對 2022 年全年的更新指導。

Let's begin with our Q2 performance on Slides 12 and 13. We had net sales of $6.9 billion for the quarter, which increased approximately 24% compared to the prior year period. Core organic sales in the value-added products category grew by 32% highlighting our work to meet the demand across our customer channels. Although we continue to face supply chain constraints in the quarter, we are pleased to report that we are seeing signs of those constraints loosening and lead times starting to return to normal.

讓我們從幻燈片 12 和 13 的第二季度業績開始。我們本季度的淨銷售額為 69 億美元，與去年同期相比增長了約 24%。增值產品類別的核心有機銷售額增長了 32%，突顯了我們在滿足客戶渠道需求方面所做的工作。儘管我們在本季度繼續面臨供應鏈限制，但我們很高興地報告，我們看到這些限制放鬆的跡象，交貨時間開始恢復正常。

Gross profit was $2.4 billion, a 52% increase compared to the prior year quarter. The gross margin increased 640 basis points to 34.8%, primarily driven by increased sales in our value-added product categories and disciplined pricing in a volatile supply-constrained marketplace. SG&A increased 15.9% to $1 billion, driven primarily by four items. Acquisitions represented over 40% of the increase. Incentive compensation represented nearly 40% of the increase due to higher net sales and profitability. Investments in strategic initiatives, such as IT, productivity and our digital strategy represented another 10% of the increase, and fuel-related expenses contributed 10% of the increase in overall SG&A.

毛利潤為 24 億美元，與去年同期相比增長 52%。毛利率增加 640 個基點至 34.8%，主要是由於我們增值產品類別的銷售額增加以及在波動的供應受限的市場中嚴格定價。 SG&A 增長 15.9% 至 10 億美元，主要受四項驅動。收購佔增長的 40% 以上。由於較高的淨銷售額和盈利能力，激勵薪酬佔增長的近 40%。對 IT、生產力和我們的數字戰略等戰略計劃的投資佔增長的另外 10%，而燃料相關費用貢獻了整體 SG&A 增長的 10%。

Adjusting for commodity inflation, expenses were 40 basis points better than the prior year, even after funding our strategic investments and absorbing inflation in several P&L categories. As a percentage of net sales, total SG&A decreased by 110 basis points to 15.1%.

即使在為我們的戰略投資提供資金並在幾個損益類別中吸收了通貨膨脹之後，根據商品通脹進行調整後，費用也比上一年好 40 個基點。作為淨銷售額的百分比，SG&A 總額下降 110 個基點至 15.1%。

Clearly, our team understands the importance of controlling expenses and has been doing an excellent job. Adjusted EBITDA increased 80% to $1.5 billion, primarily driven by poor organic growth, commodity inflation and acquisitions. Adjusted EBITDA margin improved to 21.8%, which increased 680 basis points compared to the prior year period.

顯然，我們的團隊了解控制費用的重要性，並且一直做得很好。調整後的 EBITDA 增長 80% 至 15 億美元，主要受有機增長不佳、商品通脹和收購的推動。調整後的 EBITDA 利潤率提高至 21.8%，與去年同期相比增加了 680 個基點。

Adjusted net income was $1.1 billion or $6.26 of adjusted earnings per diluted share compared to adjusted net income of $574 million or $2.76 of adjusted earnings per diluted share in the prior year period. The 86.9% increase in adjusted net income was primarily driven by the increase in net sales and gross margin, partially offset by higher income taxes and to SG&A expense.

調整後的淨收入為 11 億美元或調整後每股攤薄收益 6.26 美元，而去年同期調整後的淨收入為 5.74 億美元或調整後每股攤薄收益 2.76 美元。調整後淨收入增長 86.9% 主要是由於淨銷售額和毛利率的增長，部分被更高的所得稅和 SG&A 費用所抵消。

Now let's turn to cash flow on Slide 14. Our second quarter cash provided by operating activities was $947 million, and cash used in investing activities was $258 million. We generated free cash flow of approximately $900 million, primarily driven by core organic growth in sales and commodity inflation.

現在讓我們轉向幻燈片 14 上的現金流。我們第二季度由經營活動提供的現金為 9.47 億美元，用於投資活動的現金為 2.58 億美元。我們產生了大約 9 億美元的自由現金流，主要受銷售和商品通脹的核心有機增長推動。

Moving to capital deployment. This year, we have spent approximately $230 million on our M&A transactions, including our most recent purchase of HomCo in July. In the second quarter, we repurchased 16.9 million shares for $991 million at an average stock price of $58.7. In addition, we've repurchased approximately 4.4 million shares in July for $270 million at an average stock price of $61.18. Year-to-date through July, we have repurchased over $1.5 billion of stock.

轉向資本部署。今年，我們在併購交易上花費了大約 2.3 億美元，包括我們最近在 7 月份收購的 HomCo。第二季度，我們以 58.7 美元的平均股價以 9.91 億美元的價格回購了 1690 萬股股票。此外，我們在 7 月份以 2.7 億美元的價格回購了大約 440 萬股股票，平均股價為 61.18 美元。年初至今，截至 7 月，我們已經回購了超過 15 億美元的股票。

Since August of 2021, we have repurchased approximately 52.3 million shares of stock at an average price of $62.95 for $3.3 billion. This represents the repurchase of approximately 25% of our total shares outstanding since August of 2021. We are committed to balanced capital deployment, and we will continue to look for favorable opportunities to repurchase shares considering market dynamics and our ongoing commitment to maximize long-term value creation.

自 2021 年 8 月以來，我們以 33 億美元的平均價格回購了約 5230 萬股股票，平均價格為 62.95 美元。這意味著自 2021 年 8 月以來，我們回購了大約 25% 的流通股。我們致力於平衡資本配置，考慮到市場動態和我們對最大化長期利益的持續承諾，我們將繼續尋找回購股票的有利機會創造價值。

Our net debt-to-EBITDA ratio was approximately 0.8x our LTM adjusted EBITDA. Excluding our ABL, we have no long-term debt maturities until 2030. Our total liquidity was $1 billion, consisting of $838 million in net borrowing availability under the revolving credit facility, and $166 million of cash on hand. We are pleased with our first half '22 performance, and I want to thank our entire team for their tremendous execution and dedicated efforts despite the dynamic environment and tough year-over-year comparisons.

我們的淨債務與 EBITDA 比率約為 LTM 調整後 EBITDA 的 0.8 倍。不包括我們的 ABL，我們在 2030 年之前沒有長期債務到期。我們的總流動性為 10 億美元，其中包括循環信貸額度下的 8.38 億美元淨借款和 1.66 億美元手頭現金。我們對 22 年上半年的表現感到滿意，我要感謝我們整個團隊在動態環境和艱難的逐年比較的情況下所付出的巨大執行力和專注的努力。

As we look to the back half of 2022, I would like to provide you with our full year outlook on Slide 15. Given inflation, higher interest rates for mortgages and cancellation rates in the mid-teens, we now expect full year single-family starts across our geographies to be down mid-single digits. We expect multifamily starts to be up in the low double digits and R&R projected to be up in the low to mid-single digits.

當我們展望 2022 年下半年時，我想向您提供我們對幻燈片 15 的全年展望。鑑於通貨膨脹、較高的抵押貸款利率和十幾歲的取消率，我們現在預計全年單戶家庭在我們的各個地區開始下降到中個位數。我們預計多戶家庭將開始以兩位數的低位增長，而 R&R 預計將以低至中個位數增長。

As a result, we are lowering our base business guide on net sales from 10% to 14% to 8% to 12% or $17.2 billion at the midpoint. Our EBITDA guide remains unchanged, and we continue to expect growth of 18% to 22% or $2.2 billion at the mid as our outperformance in the first half will be largely offset by market weakness as we move further into the back half of the year.

因此，我們將淨銷售額的基本業務指南從 10% 降低到 14% 到 8% 到 12%，即中點 172 億美元。我們的 EBITDA 指南保持不變，我們繼續預計中期增長 18% 至 22% 或 22 億美元，因為隨著我們進一步進入下半年，我們上半年的出色表現將在很大程度上被市場疲軟所抵消。

We will continue to provide you with a commodity price sensitivity chart in our investor presentation on Slide 16 to allow you to incorporate your own commodity estimates into your models. CapEx guidance for the year is down to approximately $300 million in 2022 due to continued supply chain delays. Building on the approximately $40 million in productivity savings achieved during the quarter, we expect to deliver over $100 million in total productivity savings this year as we continue to drive improvements across our operations.

我們將繼續在幻燈片 16 上的投資者演示中為您提供商品價格敏感度圖表，以便您將自己的商品估計納入您的模型。由於供應鏈持續延遲，2022 年的資本支出指引將降至約 3 億美元。在本季度實現的約 4000 萬美元生產力節約的基礎上，隨著我們繼續推動整個運營的改進，我們預計今年將實現超過 1 億美元的總生產力節約。

We now expect free cash flow at the midpoint to increase from $2.2 billion to $2.75 billion, reflecting higher-than-expected commodity prices and increased profitability. Our projected free cash flow assumes average commodity prices in the range of $700 to $1,000 for the full year as prices decelerate through year-end. In conclusion, our efficient operating platform has provided us with line of sight to nearly $3 billion in free cash flow, a fortress balance sheet with no long-term debt maturities until 2030 and over $1 billion of liquidity. With that, let me turn the call back to Dave for his closing remarks.

我們現在預計中點的自由現金流將從 22 億美元增加到 27.5 億美元，這反映了高於預期的商品價格和盈利能力的提高。我們預計的自由現金流假設全年平均商品價格在 700 美元至 1,000 美元之間，因為價格在年底前會減速。總之，我們高效的運營平台為我們提供了近 30 億美元的自由現金流、直到 2030 年沒有長期債務到期的堡壘資產負債表和超過 10 億美元的流動性。有了這個，讓我把電話轉回戴夫的閉幕詞。

Thanks, Peter. Our industry is clearly experiencing pockets of deceleration. We've all seen mortgage rates rising single-family starts forecast coming down in the back half of this year and cancellation rates increasing. We are not deterred. Our company is a much different one today than it was in 2007, and we remain confident in our ability to effectively navigate the persistently unpredictable environment.

謝謝，彼得。我們的行業顯然正在經歷一些減速。我們都看到抵押貸款利率上升，今年下半年單戶住宅開工率預測下降，取消率上升。我們沒有被嚇倒。與 2007 年相比，我們今天的公司已大不相同，我們仍然對有效駕馭持續不可預測的環境的能力充滿信心。

We are operating with our eyes wide open to any near-term macro turbulence while keeping our eye insights on our long-term goals, our core values and our operating principles as our guidepost. BFS is a company with fundamental strengths and clear competitive advantages and we are prepared to win in any environment. We remain leaders in a highly fragmented industry with the opportunity to be the acquirer of choice in the event of market dislocations, given our belief in the long-term industry growth trends.

我們對任何近期的宏觀動盪都睜大眼睛，同時將我們的長期目標、核心價值觀和經營原則作為我們的指導方針。 BFS是一家基礎實力雄厚、競爭優勢明顯的公司，我們隨時準備在任何環境下取勝。鑑於我們對長期行業增長趨勢的信念，我們仍然是高度分散的行業的領導者，有機會在市場混亂的情況下成為首選收購方。

Our more than 560 facilities are in 47 of the top 50 MSAs with tremendous geographic customer and end market diversification. We have an extremely strong balance sheet, and we'll continue to execute our strategy and deliver strong free cash flows. And finally, this is a seasoned and highly experienced leadership team that has successfully navigated many prior cycles, and we will deliver compounded shareholder value over the long term.

我們的 560 多個設施位於前 50 個 MSA 中的 47 個，具有巨大的地域客戶和終端市場多元化。我們擁有極其強大的資產負債表，我們將繼續執行我們的戰略並提供強勁的自由現金流。最後，這是一支經驗豐富且經驗豐富的領導團隊，成功度過了之前的許多周期，我們將長期為股東創造複合價值。

Katie, let's please open the call now for questions.

凱蒂，讓我們現在打開電話提問。

(Operator Instructions) Our first question will come from Matthew Bouley with Barclays.

（操作員說明）我們的第一個問題將來自巴克萊銀行的 Matthew Bouley。

And congrats on the results in the quarter. So first question, just looking at the EBITDA sensitivities in the appendix, you've done $2.5 billion in EBITDA year-to-date. And I don't know, depending on our realistic lumber assumption, that sensitivity would suggest $1 billion or less of EBITDA in the second half. So my question is if that's the right way to think about our models here?

並祝賀本季度的結果。所以第一個問題，看看附錄中的 EBITDA 敏感性，今年迄今為止，您已經完成了 25 億美元的 EBITDA。而且我不知道，根據我們現實的木材假設，這種敏感性會暗示下半年的 EBITDA 為 10 億美元或更少。所以我的問題是，這是否是在這裡思考我們的模型的正確方式？

I know that's a full year static assumption. So I wonder if those are more sort of run rate expectations versus a hard guide on top of the first half performance. So not to put words into your mouth, but sort of how should we think about that sensitivity and sort of the view to the second half EBITDA?

我知道這是一整年的靜態假設。因此，我想知道這些是否更像是對運行率的預期，而不是上半年表現之上的硬性指導。因此，不要把話放在嘴裡，而是我們應該如何考慮這種敏感性以及對下半年 EBITDA 的看法？

Matt, yes, that's a great question. The purpose of our original intended lease of that sensitivity page in the back is really to give you a normalized environment, right? It dials out any fluctuations in commodity prices. It dials out any fluctuations in margins outside of what we continue -- what we consider to be normal, right? So anything more than normal margins we dial out.

馬特，是的，這是一個很好的問題。我們最初打算租用後面那個敏感頁面的目的實際上是為了給你一個標準化的環境，對吧？它撥出商品價格的任何波動。它消除了我們繼續之外的任何利潤率波動——我們認為是正常的，對吧？因此，我們撥出的除了正常利潤之外的任何東西。

So if you think about what's happened this year, this has been anything but a normal year. Clearly, we've been substantially higher. There have been a lot of displacements continuing through the market this year. We've certainly performed much, much better than normal in terms of our margins. As you've seen, right, we've guided to 27% plus as our normal margins, and we're substantially higher than that.

因此，如果您考慮一下今年發生的事情，這絕不是正常的一年。顯然，我們已經大大提高了。今年市場上出現了很多置換。就利潤率而言，我們的表現肯定比正常情況好得多。正如你所看到的，對，我們的正常利潤率已經達到 27% 以上，而且我們的利潤率要高得多。

So I would use the sensitivity chart as just a way to come up with deltas between various commodity price levels, but accounting for the fact that we're seeing pretty substantially different results in 2022 as you come up with your model and your estimate on the total included demand.

因此，我將使用敏感性圖表作為得出各種商品價格水平之間差異的一種方法，但考慮到當您提出模型和您對總需求量。

Okay. Understood. I guess second one just on sort of the gross margin, again, robust performance there in the quarter. But now we've clearly seen that sort of market inflection and potentially leasing supply chains and all these things that have helped or previously helped the gross margin. So just trying to -- thinking about your kind of long-term north 27% guide. I guess my question is, as the market is normalizing here or coming down, how should we think about the kind of pace of gross margin normalization at a base business level as we get into the second half?

好的。明白了。我想第二個只是毛利率，再次，該季度的強勁表現。但現在我們已經清楚地看到了這種市場拐點和潛在的租賃供應鏈，以及所有這些幫助或以前幫助毛利率的事情。所以只是想 - 考慮一下你的長期北方 27% 指南。我想我的問題是，隨著市場在這裡正常化或下降，我們應該如何考慮進入下半年時基本業務水平的毛利率正常化步伐？

Yes, good question again. That's an important part of how we think about our business and how we forecast, right, in addition to commodities and starts, it's certainly margins that are a critical component it's going to take a while for margins to get back down to that normal level, right? While we are pleased that the supply chain is beginning to show signs of normalizing a bit, it's certainly not back to the normal yet.

是的，又是一個好問題。這是我們如何看待我們的業務以及我們如何預測的一個重要部分，對，除了商品和開始之外，利潤率肯定是一個關鍵組成部分，利潤率需要一段時間才能恢復到正常水平，正確的？雖然我們很高興供應鏈開始顯示出一些正常化的跡象，但它肯定還沒有恢復正常。

So while we do expect it to sort of slowly progress as the year progresses back towards normal. I think we're -- we'll be a little ways out into next year before that gets back to what I would consider to be anywhere near normal, and we'll just have to watch it to see when that could potentially be.

因此，儘管我們確實希望隨著今年恢復正常，它會緩慢進展。我認為我們 - 我們將在明年恢復到我認為接近正常的水平之前，我們將有一點路要走，我們只需要觀察它，看看什麼時候可能會發生這種情況。

Our next question will come from Reuben Garner with Benchmark Company.

我們的下一個問題將來自 Benchmark Company 的 Reuben Garner。

Maybe to start on -- just want to understand the base business top line guide. So I understand that the outlook for single-family looks like it's come down about 10 points, but there's only a 2-point reduction in the base business. Can you talk about that? Is that largely because of the backlog out there and working through that before you really see any impact late in the year-to-year volume? Or is it share gains or improved adoption in some of your value-added products that kind of let you hold the line a little bit?

也許開始 - 只是想了解基本業務頂線指南。所以我知道單戶家庭的前景看起來下降了大約 10 個百分點，但基礎業務只下降了 2 個百分點。你能談談嗎？這主要是因為在您真正看到年度後期交易量的任何影響之前，積壓並解決了這些問題嗎？或者它是在你的一些增值產品中分享收益或提高采用率，讓你稍微堅持一下？

Yes, I think it's a combination of all that, Reuben, you have to point out the backlog strength that is still there. We're seeing that really across the board with our customers. We do expect through the course of the back half of the year, that backlog to get worked off. As we've said before, it takes about a quarter or so until we start to see volumes shift relative to what's happening in the starts environment.

是的，我認為這是所有這些的結合，魯本，你必須指出仍然存在的積壓強度。我們在客戶中真正看到了這一點。我們確實希望通過今年下半年的過程，積壓的工作會得到解決。正如我們之前所說，大約需要四分之一左右的時間，我們才能開始看到交易量相對於開始環境中發生的情況發生變化。

But importantly, as you point out, we've been taking share in the value-added portions of the business for a long time. and we expect that will continue. So it's a combination really of those two things. But aptly and largely, it's based on the starts decline that we expect to start seeing in the back half of the second half of the year.

但重要的是，正如您所指出的，我們長期以來一直在分享業務的增值部分。我們預計這將繼續下去。所以它實際上是這兩件事的結合。但在很大程度上，它是基於我們預計在下半年開始看到的開工率下降。

Great. And then my next question is, I appreciate the color you guys gave on kind of downside with your fixed variable and the differences in the business versus previous period. Can you talk about what your revenue gross margin and even EBITDA might look like next year in a scenario where it starts fall single-family starts fall 20% or 30% and go back to kind of where we were in '17, '18 and '19. Just kind of compare those metrics to what you would have seen a few years ago.

偉大的。然後我的下一個問題是，我很欣賞你們對固定變量的負面影響以及業務與上一時期的差異。你能談談你的收入毛利率甚至 EBITDA 在明年開始下降 20% 或 30% 並回到我們在 17 年、18 年和'19.只需將這些指標與您幾年前看到的指標進行比較即可。

Sure. I'll start out at a higher level and then Peter can kind of fill in any color. But as you point out, and we commented here in the script, we're not the same company. Clearly, we're 12x larger, 60x more profitable. We've got a bulletproof balance sheet. Over $2.5 billion of free cash flow. And as you know, in a slowing environment, that free cash flow will accelerate as we unwind working capital. But importantly, we've been talking for several quarters here about any demand shift or decline being short-lived, certainly relative to what happened in '07.

當然。我將從更高的層次開始，然後彼得可以填充任何顏色。但正如你所指出的，我們在劇本中評論過，我們不是同一家公司。顯然，我們的規模擴大了 12 倍，利潤增加了 60 倍。我們有一個防彈的資產負債表。超過 25 億美元的自由現金流。如您所知，在放緩的環境中，隨著我們解除營運資金，自由現金流將加速。但重要的是，我們已經在這裡討論了幾個季度的任何需求變化或下降都是短暫的，當然相對於 07 年發生的情況。

And two key reasons why. First, the demographic shift. We've talked a lot about the millennials driving a lot of the starts over the past few years. We think they're driving about 30% of the housing starts, and that demand is much stronger than it was, say, in 2007. And secondly and importantly, over the last decade plus, we've had a huge underbilling in this industry. So that demand is not going away. We've underserved the market somewhere between 2 million and 6 million single-family homes over the last 12 to 15 years. So we think any of that recessionary environment will power through that through the long term. So that's why we're very bullish on where the industry ends up over the long term.

還有兩個關鍵原因。首先，人口結構的轉變。在過去的幾年裡，我們已經談了很多關於千禧一代推動很多創業的話題。我們認為他們推動了大約 30% 的房屋開工，而且這種需求比 2007 年時要強勁得多。其次，重要的是，在過去十年多的時間裡，我們在這個行業的賬單嚴重不足.所以這種需求不會消失。在過去的 12 到 15 年裡，我們為 200 萬到 600 萬套單戶住宅市場服務不足。因此，我們認為任何衰退環境都將在長期內度過難關。這就是為什麼我們非常看好該行業的長期發展方向。

Yes. And while I'm not sure I buy into the downside range, I certainly spent a lot of time with the team working on models and making sure we understand how our business would perform in the event of a downturn that looks like that. We do think there's a bit of a buffer from backlog a quarter or so where we're going to continue to build out the homes that have been started and put under construction. Might go longer, could go quicker, but that's certainly a component to think about as you're looking at what's going to happen through the rest of this year.

是的。雖然我不確定我是否接受下行區間，但我確實花了很多時間與團隊一起研究模型，並確保我們了解在看起來像這樣的低迷時我們的業務將如何表現。我們確實認為，四分之一左右的積壓工作有一點緩衝，我們將繼續建造已經開工和在建的房屋。可能會更久，也可能會更快，但這肯定是你要考慮的一個組成部分，因為你正在考慮今年剩下的時間會發生什麼。

As you look into the future, though, you've got a couple of main components that I would highlight, right? So you're looking at those variables, it's starts, which we would expect to follow along with, right? We're going to move because we're in the main markets where starts occur, we're going to move with the market. Our margins, which are very much driven by both our product mix and the competitiveness and availability of product in the market. And then finally, lumber price is certainly influential. And we try and outline for you what that might go with -- or that might go to.

但是，當您展望未來時，您有幾個我要強調的主要組成部分，對吧？因此，您正在查看這些變量，它是開始，我們希望隨之而來，對嗎？我們要搬家，因為我們在開始的主要市場，我們要跟市場一起搬家。我們的利潤率很大程度上取決於我們的產品組合以及市場上產品的競爭力和可用性。最後，木材價格肯定是有影響的。我們嘗試為您概述可能會發生什麼 - 或者可能會發生什麼。

Obviously, a recession would impact all three of those variables. And would really start us on that trend back towards our normalized margin level. A quick hit like that, something that moved very quickly, might put us under the normalized margins for a short period of time, maybe a couple of points below that, but we certainly think that's a reasonable range. It's a question really around what the regression looks like, how quickly it goes there and how resilient some of these markets and some of these customers are. But also keep in mind, we've gotten more mature and done a lot of work to improve our business in terms of the synergies, the productivity savings, our consistently increasing mix towards value add. There are all things we think we're going to be able to leverage quite well in terms of our results.

顯然，經濟衰退會影響所有這三個變量。並且真正讓我們開始朝著我們的正常保證金水平回歸的趨勢。像這樣的快速打擊，快速移動的東西，可能會在短時間內使我們處於正常化邊距之下，可能低於該值幾個點，但我們當然認為這是一個合理的範圍。這實際上是一個關於回歸是什麼樣子的問題，它去那裡的速度有多快，以及其中一些市場和其中一些客戶的彈性如何。但請記住，我們已經變得更加成熟，並在協同效應、生產力節省、我們不斷增加的增值組合方面做了大量工作來改善我們的業務。就我們的結果而言，我們認為我們將能夠很好地利用所有的東西。

Our next question will come from Trey Grooms of Stephens.

我們的下一個問題將來自斯蒂芬斯的 Trey Grooms。

I have to echo the congrats on the very impressive results. So you guys have a long-term history of outperforming the markets you serve. And Dave, you reiterated that you expect to outperform the market in any environment. But more specifically, can you talk about expectations for product mix and slower periods of housing demand, would you expect to see any change in mix or maybe relative demand for prefab components or other value-added products?

我必須對令人印象深刻的結果表示祝賀。因此，你們有著超越所服務市場的長期歷史。戴夫，您重申您希望在任何環境下都能跑贏市場。但更具體地說，您能否談談對產品組合和住房需求放緩期的預期，您是否期望看到組合的任何變化或對預製組件或其他增值產品的相對需求？

Great question, Trey. We've seen that demand shift more to the value-added side of the business over the past several years. Obviously, both legacy companies were driving that, and we've certainly stepped on the gas. We think that mix shift will continue over the long term regardless of what's going on in the environment.

好問題，特雷。在過去幾年中，我們已經看到需求更多地轉向了業務的增值方面。顯然，兩家傳統公司都在推動這一點，我們當然已經踩到了油門。我們認為，無論環境發生什麼，這種混合轉變將長期持續下去。

If for no other reason that there's been such a tremendous exit of skilled labor in the industry since the last downturn, and you don't just get that back over time. So importantly, those efficiency gains that the builders are gaining from the work we're going off site will be important in a even in a slower market environment because they need those efficiencies. They need to be as productive as they can in a slower operating environment.

如果沒有其他原因，自上次經濟低迷以來，該行業的熟練勞動力出現瞭如此巨大的退出，而且隨著時間的推移，你不會只是把它找回來。因此，重要的是，即使在市場環境放緩的情況下，建築商從我們在場外的工作中獲得的效率提升也很重要，因為他們需要這些效率。他們需要在較慢的操作環境中盡可能高效。

So we're excited about the shift we've had. Our teams aligned around it. We expect those product shifts to continue through the course of time.

所以我們對我們所經歷的轉變感到興奮。我們的團隊圍繞它結盟。我們預計這些產品轉變將隨著時間的推移而繼續。

Okay. And then kind of follow on around the same topic here. Can you talk about how your push towards digital plays into your strategy in a slower operating environment? And how that might change the way you go to market or anything like that?

好的。然後在這裡繼續圍繞同一主題。您能否談談在較慢的運營環境中，您對數字化的推動如何影響您的戰略？以及這將如何改變您進入市場的方式或類似的方式？

We're really excited about our digital platform and the work that's been done. Importantly, we hit that important milestone. As we've talked about the long-term strategy and the vision when we acquired Paradigm just about a year ago now. We said we would take a platform that was fairly narrowly focused in the millwork side of the business and extend that to the whole home design. And importantly, we said we would start with our strength, which was a structural design of the home.

我們對我們的數字平台和已經完成的工作感到非常興奮。重要的是，我們達到了那個重要的里程碑。正如我們在大約一年前收購 Paradigm 時談到的長期戰略和願景一樣。我們說我們將採用一個相當狹隘地專注於業務的木製品方面的平台，並將其擴展到整個家居設計。重要的是，我們說我們將從我們的力量開始，這是家庭的結構設計。

And as I said in the script, we just recently hit an important milestone where we've integrated the material takeoff with that structural design into the visualizer with Paradigm. So that starts to bring together some of those key elements and capability that we spoke about. Still a lot more work to do but the vision is intact, and we have invested heavily in the last 12 months. We'll continue to invest heavily, we believe in the vision.

正如我在腳本中所說，我們最近剛剛達到了一個重要的里程碑，我們將材料起飛與該結構設計集成到使用 Paradigm 的可視化器中。因此，這開始將我們談到的一些關鍵要素和能力結合在一起。還有很多工作要做，但願景是完整的，而且我們在過去 12 個月裡投入了大量資金。我們將繼續大力投資，我們相信願景。

And regardless of the market environment, we think digital is the right long-term play, not only for us, but importantly, for the industry because we're driving a lot of efficiency gains, and I talked about it in the script here a little bit, finding all the problems in the digital world instead of at the job site, just drives tremendous efficiency gains, and that's really at the heart of what we're trying to achieve here.

不管市場環境如何，我們認為數字化是正確的長期策略，不僅對我們，而且重要的是，對整個行業來說，因為我們正在推動大量的效率提升，我在這裡的劇本中談到了這一點一點點，在數字世界而不是在工作現場發現所有問題，只會帶來巨大的效率提升，而這確實是我們在這裡努力實現的核心。

And we're excited about it. We think we're going to lean in pretty hard regardless of what's going on in the world around us because we believe in the long-term strategy and what this is going to bring to the industry.

我們對此感到興奮。我們認為，無論我們周圍的世界發生什麼，我們都會非常努力地投入，因為我們相信長期戰略以及這將為行業帶來什麼。

Our next question will come from Mike Dahl with RBC Capital Markets.

我們的下一個問題將來自 RBC Capital Markets 的 Mike Dahl。

Peter, I wanted to follow up on the -- on Matt's question to start the call around the ranges and maybe a specific question around second half because you think it's causing some confusion. I think what you're saying is this year has been fairly unique, right? So if you were to say, pick a number in this kind of commodity tier, say, $800 lumber, your range here suggests that would produce $3 billion to $3.3 billion in adjusted EBITDA. I think what you're saying is in reality, the margins this year are stronger, so you would produce higher than that in the current environment at those lumber prices. So is one, correct me if I'm wrong there, but more specifically.

彼得，我想跟進馬特關於範圍開始跟注的問題，也許是下半場左右的一個具體問題，因為你認為這會造成一些混亂。我認為你所說的是今年相當獨特，對吧？因此，如果您要說，在這種商品級別中選擇一個數字，例如 800 美元的木材，您的範圍表明這將產生 30 億至 33 億美元的調整後 EBITDA。我認為您所說的實際上是，今年的利潤率更高，因此以這些木材價格，您的產量將高於當前環境。一個，如果我錯了，請糾正我，但更具體地說。

That's exactly right. Yes.

這是完全正確的。是的。

Okay. So maybe just to clear up the confusion. Can you give us what the true base business EBITDA was in both the quarter and year-to-date?

好的。所以也許只是為了消除混亂。您能否告訴我們本季度和年初至今的真實基礎業務 EBITDA 是多少？

I will say we don't provide a quarterly split for base business. We think the annualized view is still the right way to look at it as it accounts for the seasonality and the comparisons, we think, in a more rational way. I can offer up that the fall through in the second quarter was about 2/3 non-commodity, 1/3 commodity in terms of what EBIT it is to give you a sense of the type of outperformance. Obviously, we're seeing in both categories. But how that reflects on the base business side. And the base business material is in there. So you can see our expectation for the full year.

我會說我們不提供基礎業務的季度拆分。我們認為年化視圖仍然是看待它的正確方式，因為它以更合理的方式解釋了季節性和比較。我可以提出，第二季度的下跌大約是 2/3 非商品，1/3 商品的息稅前利潤是什麼讓你了解表現出色的類型。顯然，我們在這兩個類別中都看到了。但這如何反映在基礎業務方面。基本的商業材料就在那裡。所以你可以看到我們對全年的期望。

Okay. Got it. We'll do some more math around that. And then the second question, you have -- part of the increase in free cash flow presumably comes from similar performance year-to-date and some additional commodity tailwinds, you have pulled back your CapEx guide by about $100 million. And so could you elaborate a little more on kind of deltas for free cash? And then specifically the lower CapEx, what are you what's contemplated in terms of things that are either getting shelved or pushed out to next year?

好的。知道了。我們將圍繞它做更多的數學運算。然後第二個問題，你有 - 自由現金流的部分增長可能來自今年迄今為止的類似表現和一些額外的商品順風，你已經將你的資本支出指南拉回了大約 1 億美元。那麼你能詳細說明一下免費現金的增量嗎？然後特別是較低的資本支出，就被擱置或推遲到明年的事情而言，您有什麼考慮？

Yes, sure. I mean I'm certainly -- I think the whole team is disappointed on the CapEx side where we've got a lot of really great initiatives that we're pushing on new facilities, trying to refresh our fleet, investments and a bunch of different projects that we're excited about. We've just struggled getting what we're looking for, whether it be buildings or trucks, whether it be development, the speed of getting properties ready to sort of turn on the switches and get things going. It's just gone more slowly than we anticipated. So we're not looking at canceling or shelving anything at this point. It's all really just pushing out into next year. We're continuing to push forward and trying to make sure we have the capacity we need to meet our customers' needs.

是的，當然。我的意思是我當然 - 我認為整個團隊對資本支出方面感到失望，我們有很多非常好的舉措，我們正在推動新設施，試圖更新我們的機隊，投資和一堆我們興奮的不同項目。我們只是在努力尋找我們正在尋找的東西，無論是建築物還是卡車，無論是開發，讓物業準備好打開開關並讓事情順利進行的速度。它只是比我們預期的要慢。因此，我們目前不考慮取消或擱置任何事情。這一切真的只是推遲到明年。我們將繼續向前推進，並努力確保我們擁有滿足客戶需求所需的能力。

When it comes to the broader business, you hit the nail in the head. I mean, clearly, we outperformed in the first half. That profitability on the base business and the performance of the core operations critically important to that cash flow increase, but we also saw higher commodity prices than we anticipated. I think they went up more aggressively in the second quarter and probably came down pretty aggressively, too.

當涉及到更廣泛的業務時，您會一針見血。我的意思是，很明顯，我們在上半場表現出色。基礎業務的盈利能力和核心業務的表現對現金流的增加至關重要，但我們也看到商品價格高於我們的預期。我認為他們在第二節上升得更積極，也可能下降得相當積極。

But overall, it's higher than what we had been anticipating. And so the compounding of those three factors, we're going to pass that cash through the business. We certainly are excited about it. It does make an assumption, one that we've said repeatedly. And of course, people can have different opinions on this. But we do anticipate commodity prices returning to a more historically normalized level by year-end. So there's certainly a component of that that's included any time we've given these guidance numbers.

但總的來說，它比我們預期的要高。因此，這三個因素的複合，我們將通過業務傳遞現金。我們當然對此感到興奮。它確實做了一個假設，一個我們反复說過的假設。當然，人們可能對此有不同的看法。但我們確實預計大宗商品價格到年底會恢復到歷史上更加正常化的水平。因此，在我們給出這些指導數字的任何時候，肯定都會包含其中的一部分。

We will take our next question from Ketan Mamtora with BMO Capital Markets.

我們將回答 Ketan Mamtora 與 BMO 資本市場的下一個問題。

David, I want to come back to that -- the mix question again. I mean, if you're assuming that the economy is slowing, housing starts, special on the single-family side are going to, let's say, assume are going to fall next year. Presumably, the labor situation is much better than what it is today. Would you envision even in that scenario for your customers to not trade down from a mix standpoint to more commodity products? Or is that not a right way to think?

大衛，我想再次回到那個混合問題。我的意思是，如果你假設經濟正在放緩，那麼新屋開工，特別是單戶住宅方面的開工量，比如說，假設明年會下降。據推測，勞動力狀況比現在要好得多。即使在這種情況下，您是否會設想您的客戶不會從混合的角度降價購買更多商品？或者這不是正確的思考方式？

No. We -- as I said earlier, Ketan, we think we're going to continue to lead in. Our customers love these products. They solve a lot of problems at the job site and help make them more efficient. So we believe we're going to lean in hard and the mix will continue to shift through the course of time.

不。我們——正如我之前所說，Ketan，我們認為我們將繼續領先。我們的客戶喜歡這些產品。他們解決了工作現場的許多問題，並幫助提高了他們的效率。因此，我們相信我們將全力以赴，並且隨著時間的推移，這種組合將繼續發生變化。

And the thing I'd add to that is this isn't just a open a prayer. The LDR during the Great Recession grew our share of business attributable to trough and manufacturer products. So even during a recession that I think all of us anticipated is much more severe than what we're looking at here. The market continued to adopt these products for exactly the reasons that Dave mentioned.

我要補充的是，這不僅僅是一個開放的祈禱。大衰退期間的 LDR 增加了我們在低谷和製造商產品方面的業務份額。因此，即使在我認為我們所有人預期的經濟衰退期間，情況也比我們在這裡看到的要嚴重得多。正是出於戴夫提到的原因，市場繼續採用這些產品。

And we've been through cycles, up and down cycles ports of time over the last decade, and we continue to penetrate the market because there's real value for our customers with these products.

在過去的十年中，我們經歷了周期、上升和下降週期，我們繼續滲透市場，因為這些產品對我們的客戶具有真正的價值。

Got it. That's helpful. And then second question. Obviously, from a balance sheet standpoint, you guys are in a very strong position, as you mentioned, fortress balance sheet. I'm just curious, in case things were to the downturn were to be more severe than what we are expecting. How do you guys think about kind of keeping liquidity cushion versus let's say, share repurchases if the stock was to come under pressure.

知道了。這很有幫助。然後是第二個問題。顯然，從資產負債表的角度來看，你們處於非常有利的地位，正如你所提到的，要塞資產負債表。我只是好奇，萬一經濟衰退比我們預期的更嚴重。你們如何看待保持流動性緩衝而不是假設股票承受壓力時的股票回購。

Well, I'd tell you, looking at our balance sheet, as you described. We've got a disciplined approach to ensuring we have a bull approved balance sheet, right? So our #1 priority in terms of capital allocation is ensuring that we're able to withstand whatever comes. So we run the but the downside models to ensure that to ensure we've got proper coverage.

好吧，我會告訴你，正如你所描述的，看看我們的資產負債表。我們有一個嚴格的方法來確保我們有一個牛市批准的資產負債表，對吧？因此，我們在資本配置方面的第一要務是確保我們能夠承受任何發生的事情。因此，我們運行但不利的模型，以確保我們得到適當的覆蓋。

The other point is that as it stands today, not only do we have liquidity, we still have a substantial amount of capital that's unaccessed on the working capital side that we could -- it's a cushion in case things reset in terms of the valuation perspective, but we certainly have more in our pocket as well, especially given the unsecured nature of our [barn].

另一點是，就目前的情況而言，我們不僅擁有流動性，而且在營運資本方面我們仍然有大量資金無法使用——這是一個緩衝，以防在估值方面發生重置，但我們的口袋里當然也有更多，特別是考慮到我們 [穀倉] 的不安全性。

So I think as good as it is, it's even better than it looks. And I think what that does for us is it puts us in a position to be both selective but also aggressive as the opportunities present themselves. We've been very thoughtful about the way we look at M&A. We're disciplined about the criteria that we look at, the financial expectations, the alignment with strategy, we're going to continue to do that.

所以我認為儘管它很好，但它甚至比它看起來更好。我認為這對我們的影響在於，它使我們能夠在機會出現時既具有選擇性，又具有進取性。對於我們看待併購的方式，我們一直深思熟慮。我們對我們所關注的標準、財務預期、與戰略的一致性有紀律，我們將繼續這樣做。

Even with that said, we've been very successful at adding very nice businesses to the portfolio. And we think there's going to be a lot more opportunity to do that and significant opportunities to do that opportunistically during a downturn, if that's the way this turns out to be. And let's face it, we have a high beta and we're going to be smart and opportunistic about buying back shares. We believe in it. We know our stock has tremendous value, and we're going to be smart about it and make sure we're allocating capital in a way that maximizes the shareholder value over the long term.

即便如此，我們在向投資組合中添加非常好的業務方面還是非常成功的。而且我們認為，如果事實證明是這樣的話，在經濟低迷時期會有更多的機會來做這件事，並且有很多機會來做這件事。讓我們面對現實吧，我們有一個高貝塔值，我們將在回購股票方面變得聰明和機會主義。我們相信它。我們知道我們的股票具有巨大的價值，我們將對此保持聰明，並確保我們以長期最大化股東價值的方式分配資本。

Our next question will come from David Manthey with Baird.

我們的下一個問題將來自 David Manthey 和 Baird。

And back to Slide 16. The -- this is a minor issue, but it seems like the revenues across the tiers ticked down by about $1 billion, and the EBITDA range shaded down by about $100 million across the tiers versus what you had in the grid last quarter. Is there anything to that? Is it just refining your thoughts on the grid?

回到幻燈片 16。這是一個小問題，但似乎各個層級的收入下降了約 10 億美元，EBITDA 範圍與您在上個季度的網格。這有什麼關係嗎？它只是在網格上提煉你的想法嗎？

Yes, there's nothing really to it. I mean we tweak it and adjust it to stay aligned with our core operating model. So we try to move it. So the two match up and minor things shift from time to time, but it's not signaling anything really.

是的，這沒什麼。我的意思是我們調整它並調整它以與我們的核心運營模式保持一致。所以我們嘗試移動它。所以這兩個匹配，小事情不時發生變化，但這並沒有真正發出任何信號。

Cool. All right. That's what I figured. And then second, when you talk about the price fluctuations versus a static commodity environment, we experienced rapid and significant downside in lumber in like the fall of '20 and May through August of '21 and even year-to-date since about March, but we haven't really seen much of a falloff in EBITDA. In fact, a lot of those quarters actually saw better EBITDA. I'm just trying to understand what's different about the future versus the recent past performance we've seen here.

涼爽的。好的。我就是這麼想的。其次，當您談論價格波動與靜態商品環境時，我們在 20 年秋季和 21 年 5 月至 21 年 8 月甚至年初至今的 3 月左右經歷了木材快速而顯著的下跌，但我們並沒有真正看到 EBITDA 的大幅下降。事實上，其中很多季度的 EBITDA 確實更好。我只是想了解未來與我們在這裡看到的最近過去的表現有何不同。

Yes. No, I think it's a great question, and it highlights a lot of the work we've done to make the business stronger, more predictable. But it also reflects, I think, the still supply-constrained environment. I know all of us have had a wonderful time talking about the downside opportunities that this industry faces since the beginning of the year, but in practice in reality, we're still running hard to be able to deliver on what our customers need to continue building out these homes.

是的。不，我認為這是一個很好的問題，它突出了我們為使業務更強大、更可預測所做的許多工作。但我認為，這也反映了供應仍然受限的環境。我知道自今年年初以來，我們所有人都在談論該行業面臨的下行機會時度過了愉快的時光，但在現實中，我們仍在努力實現客戶繼續需要的東西建造這些房屋。

So I think what you've seen in a couple of ways, I think probably the most important one is around the way we've changed pricing. These changes have made our results a bit more stable, a bit more predictable in terms of upside and downside swings in commodities and what it does to our profitability. We talked about substantially reducing the amount of fixed as we used to call it, price contracts.

所以我認為你從幾個方面看到的，我認為最重要的一個可能是我們改變定價的方式。這些變化使我們的結果更加穩定，在商品的上行和下行波動以及它對我們盈利能力的影響方面更加可預測。我們談到了大幅減少我們過去所說的固定價格合同的數量。

So that's an important piece of it, why we wouldn't see as much sort of constraint or reduction in gross margin percentages during inflationary moments and inversely expansion during the down cycles. But I think it's more related to the overall demand environment in terms of our capacity, getting products to the market, having access to those products in the first place and being very careful about how we manage that capacity ensuring that pricing is disciplined and that we're moving our product quickly and efficiently. I think those things really have come together to allow us to have a superior profitability performance.

所以這是其中的一個重要部分，為什麼我們不會在通貨膨脹時期看到毛利率百分比的限製或減少，以及在下行週期中的反向擴張。但我認為這與我們的產能、將產品推向市場、首先獲得這些產品以及非常謹慎地管理產能以確保定價有紀律以及我們'正在快速有效地移動我們的產品。我認為這些東西確實結合在一起，使我們能夠擁有出色的盈利表現。

Although we do expect some of that will fade over time as we've outlined and margins will normalize a bit. But I do think we'll retain that more consistent, more predictable profitability profile.

儘管我們確實預計其中一些會隨著時間的推移而消退，正如我們所概述的那樣，利潤率會稍微正常化。但我確實認為我們將保持更一致、更可預測的盈利能力。

Our next question will come from Stanley Elliott.

我們的下一個問題將來自 Stanley Elliott。

Congratulations. Dave, can you talk a little bit more about what's happening on the digital side? I mean it sounds to me like that things are accelerating or at least tracking almost ahead of expectations. And when I would have looked back at the Analyst Day, kind of the 5-year build, you targeted $1 billion of revenue, I would have thought the first 2 years were more building it out. Maybe the last 3 years, you're starting to see the revenue flow through. Is that still the case? Or are you kind of tracking ahead of those expectations?

恭喜。戴夫，你能多談談數字方面發生的事情嗎？我的意思是，在我看來，事情正在加速或至少幾乎超出預期。當我回顧分析師日時，那種 5 年的構建，你的目標是 10 億美元的收入，我會認為前 2 年更多的是構建它。也許在過去的 3 年裡，您開始看到收入流過。還是這樣嗎？或者你是否在跟踪這些期望？

So I think we're right on track, Stanley. You're thinking about it right. We hit an important milestone in the quarter and wanted to share that. But that's part of the plan. So there's still a whole lot more work for our team to do.

所以我認為我們走上了正軌，斯坦利。你想對了。我們在本季度達到了一個重要的里程碑，並希望分享這一點。但這是計劃的一部分。所以我們的團隊還有很多工作要做。

My main message is we're executing well the development is coming together exactly as we expected. We still expect to see that $1 billion, and it will be back-end loaded in that 5-year time horizon per design. So we're right on track with where we want to be.

我的主要信息是我們執行得很好，開發正在按照我們的預期進行。我們仍然希望看到這 10 億美元，並且它將在每個設計的 5 年時間範圍內進行後端加載。所以我們正朝著我們想要的方向前進。

But the thing I would add is I think this reflects how much the market is underestimating how powerful this thing is, right? We've seen the vision for where it's going to go. And these things that we're that we're rolling out right now, as Dave mentioned, are amazing. They're massive. They're unprecedented in terms of capabilities for this industry, and we're just getting started.

但我要補充的是，我認為這反映了市場低估了這個東西的強大程度，對吧？我們已經看到了它的發展方向。正如戴夫所說，我們現在正在推出的這些東西非常棒。它們很大。他們在這個行業的能力方面是前所未有的，我們才剛剛開始。

And switching gears a bit. You mentioned the automation piece, I can guess the 8 lines, you did have to push some CapEx out. I mean is that going to impact your ability to get those automated lines up and running? And then how do you think about that in terms of throughput, productivity? Anything you want to share with us here today.

並稍微切換一下。你提到了自動化部分，我可以猜到 8 行，你確實必須推出一些資本支出。我的意思是這會影響你讓這些自動化生產線啟動和運行的能力嗎？然後您如何看待吞吐量和生產力？您今天想在這裡與我們分享的任何內容。

Well, we've been investing heavily in automation, base automation for many years. Both legacy companies have done that. We're continuing to automate. As Peter mentioned, there's some equipment challenges in just getting things in. But our strategy is sound. And what I mentioned around the 8 lines, this is new technology and capability that we've worked with House of Design around over the last couple of years.

好吧，多年來我們一直在大力投資自動化，基礎自動化。兩家傳統公司都這樣做了。我們正在繼續自動化。正如彼得所提到的，只是把東西放進去會遇到一些設備挑戰。但我們的策略是合理的。我在 8 行中提到的，這是我們在過去幾年中與設計之家合作的新技術和能力。

And this is beyond automation. This is fully robotic trust manufacturing. And so we had an important data point coming together at Billerica, and we expect over the next couple of years to buy another 8 more of those lines, 4 on the roof side, 4 on the floor trust side.

這超出了自動化範圍。這是完全機器人信任製造。因此，我們在 Billerica 收集了一個重要的數據點，我們預計在接下來的幾年中將再購買 8 條這樣的生產線，其中 4 條在屋頂側，4 條在地板側。

So we're continuing to innovate and come up with new and creative ways to, first of all, get a more consistent product to our customers and secondly, deal with the same labor challenges our customers face that we've got inside. So it takes some of those issues off the table. But we'll continue to invest, and we expect there may be some puts and takes here or there a carryover in capital, but we will spend that money and we're committed to that capability.

因此，我們將繼續創新並提出新的和創造性的方法，首先，為我們的客戶提供更一致的產品，其次，應對客戶面臨的與我們內部相同的勞動力挑戰。因此，它消除了其中一些問題。但我們將繼續投資，我們預計可能會有一些看跌期權或那裡的資本結轉，但我們會花掉這筆錢，並且我們致力於實現這種能力。

We're excited about this. I mean I think that the idea around not having all the capital that we want is really -- we're already doing 200 miles an hour and lapping everybody, but we want to do 210, right? We want to lap everybody faster on this stuff. And it's just disappointing it hasn't come in as fast as we'd like. But it's not going to hurt us. It's just maybe going to keep us from seeing the opportunities as quickly as we'd like.

我們對此感到興奮。我的意思是，我認為沒有我們想要的所有資金的想法是真的 - 我們已經以每小時 200 英里的速度跑，並且讓每個人都跑了，但我們想要跑 210 英里，對嗎？我們希望讓每個人更快地了解這些東西。令人失望的是它沒有像我們想要的那樣快。但這不會傷害我們。這可能會讓我們無法盡快看到機會。

Our next question will come from Adam Baumgarten with Zelman.

我們的下一個問題將來自 Adam Baumgarten 和 Zelman。

Could you give us a sense for how the core organic sales growth in the quarter broke down by volume and price?

您能否讓我們了解本季度核心有機銷售增長如何按數量和價格細分？

Yes, I'd say this time, it was much heavier towards price, more of an 80-20 split.

是的，這一次我想說的是，它對價格的影響要大得多，更多的是 80-20 分。

Okay. Great. And then just -- you guys did $40 million in productivity savings in the second quarter, target for over $100 million. Can you give us that number for the first quarter?

好的。偉大的。然後只是——你們在第二季度節省了 4000 萬美元的生產力，目標是超過 1 億美元。你能給我們第一季度的數字嗎？

So the first quarter was actually satisfying the remainder of our synergy savings commitment. So we've changed our language as we committed to do. So that first number was $32 million or $52 million -- $52 million in the first quarter. And then the remainder, the other $100 million that we're talking about is Qs 2 through 4 and productivity specific, not synergy. So $60 million come in the back half.

因此，第一季度實際上滿足了我們剩餘的協同儲蓄承諾。因此，我們按照承諾更改了我們的語言。所以第一個數字是 3200 萬美元或 5200 萬美元——第一季度為 5200 萬美元。然後剩下的，我們正在談論的另外 1 億美元是 Qs 2 到 4 和生產力特定的，而不是協同作用。因此，後半部分有 6000 萬美元。

Our next question will come from Collin Verron with Jefferies.

我們的下一個問題將來自 Collin Verron 和 Jefferies。

I just wanted to touch on the long-term targets here. I know you reiterated your 2025 base business targets despite the change in end market expectations. So I was just -- just to give some more comfort around those targets, can you just frame out what would need to happen in the macro environment in the single-family end market, for there to be risk to that guidance, whether that be from a financial perspective or a time line of achieving those goals?

我只是想在這裡談談長期目標。我知道您重申了 2025 年的基本業務目標，儘管終端市場預期發生了變化。所以我只是——只是為了給這些目標一些安慰，你能不能把在單戶終端市場的宏觀環境中需要發生的事情框定出來，因為該指導存在風險，無論是從財務角度或實現這些目標的時間線？

Yes, I think the obvious one is that if the market for single family, in particular, stays down and doesn't recover back to sort of our expected low single-digit growth since '21 number by 2025, that would put pressure on our ability to make that [total.]

是的，我認為顯而易見的一點是，如果特別是單身家庭的市場保持低迷，並且到 2025 年無法恢復到我們預期的自 21 年以來的低個位數增長，那將給我們帶來壓力做到這一點的能力[總計]

I'd say that's about it. I'd say all the internal operating stuff that we committed to, we've got line of sight to, we feel good about. But from a macro or external expectations perspective, that's the one thing that we count on.

我會說就是這樣。我想說我們承諾的所有內部運營的東西，我們有視線，我們感覺很好。但從宏觀或外部預期的角度來看，這是我們所依賴的一件事。

Okay. That's helpful. And then can you just dive into the EBITDA bridge a little bit more? I think you said the split between non-commodity and commodity was 2/3, 1/3. It implies a pretty good 40% incremental EBITDA in the non-commodity business, I think. So could you just kind of define the moving pieces there? And how sustainable that kind of margin is? And maybe what you guys are looking at from a decremental margin perspective, if you start to see volumes turn?

好的。這很有幫助。然後你能再深入了解一下 EBITDA 橋嗎？我想你說非商品和商品之間的比例是 2/3、1/3。我認為，這意味著非商品業務的 EBITDA 增長了 40%。那麼你能定義一下那裡的移動部件嗎？這種利潤率的可持續性如何？如果您開始看到交易量發生變化，也許你們從遞減保證金的角度來看是什麼？

Yes. I mean I guess the comments will sound a bit familiar, right? You're right, it was about 2/3, 1/3 in terms of the benefit that we saw in the non-commodity side versus the commodity side. We do think it over time, things are going to return towards that normalized 27% plus gross margin level. We don't think it's going to happen over a quarter or 2. I think it will take a while longer for that to normalize primarily because of the same reasons we're seeing the benefit now.

是的。我的意思是我猜這些評論聽起來有點熟悉，對吧？沒錯，就我們在非商品方面與商品方面看到的收益而言，大約是 2/3、1/3。我們確實認為，隨著時間的推移，事情將恢復到正常化的 27% 加上毛利率水平。我們認為它不會發生超過四分之一或 2 個。我認為這需要一段時間才能正常化，主要是因為我們現在看到的好處相同的原因。

The primary reasons are around supply chain constraints around not having enough capacity to meet the demand and that happening in a number of different markets. So there are obviously reasons for that to normalize. That will come through in the form of increased capacity from suppliers. It may come through in the form of decreased demand from the end markets.

主要原因是供應鏈限制，因為沒有足夠的能力來滿足需求，而且這種情況發生在許多不同的市場。因此，顯然有理由使其正常化。這將通過供應商增加產能的形式實現。它可能以終端市場需求減少的形式出現。

But we certainly think there is a permanent benefit in what we have experienced in the past couple of years as it pertains to our increasing value-add mix, the increased adoption in the industry as well as our ability to compete effectively in really successful markets around the country.

但我們當然認為，我們在過去幾年中所經歷的事情會帶來永久性的好處，因為它與我們不斷增加的增值組合、行業中越來越多的採用以及我們在真正成功的市場中有效競爭的能力有關。國家。

Our next question will come from Jay McCanless with Wedbush.

我們的下一個問題將來自韋德布什的 Jay McCanless。

Fantastic quarter, guys. After we purchased in July, how much do you have left on the authorization now?

很棒的季度，伙計們。我們7月份購買後，現在授權還剩多少？

There's $1 billion more left on that authorization.

該授權還剩下 10 億美元。

Okay. And then -- and I apologize if I missed this, but could you kind of walk through what happened to get to the $2.5 billion on the free cash flow versus the $3 billion? That was a pretty nice increase in the midpoint. I'm just wondering what would cause the low end versus the high end, Peter?

好的。然後 - 如果我錯過了這一點，我深表歉意，但你能否介紹一下 25 億美元的自由現金流與 30 億美元之間發生了什麼？這是中點的一個相當不錯的增長。我只是想知道什麼會導致低端與高端，彼得？

Yes. I mean I think the biggest impacts are from what commodities did and what the profitability did in the first half. We -- and you know this, Jay, we've been very consistent about it. We continue to build our models with that expectation of a regression towards a more normalized commodity price. And instead of progressing, it actually accelerated for a window of time. So that benefit is certainly real to us. It generates real cash that we put to work. So that's a big piece of it. Our profitability is up, right?

是的。我的意思是，我認為最大的影響來自大宗商品的表現以及上半年的盈利能力。我們——你知道這一點，傑伊，我們一直對此非常一致。我們繼續建立我們的模型，期望商品價格回歸更正常化。它實際上並沒有取得進展，而是加速了一段時間。所以這種好處對我們來說肯定是真實的。它產生了我們投入工作的真正現金。所以這是一個很大的部分。我們的盈利能力提高了，對吧？

So that outperformance certainly we're very happy with, and we think that is going to continue to be a positive influence on the business as we continue to execute on productivity initiatives and things we're doing to drive that profitability, and that's another big piece. And then probably the least pleasant component is that $100 million of CapEx that we don't think we're going to be able to pull in this year just given the pace of supply chain issues.

因此，我們對這種出色表現當然感到非常滿意，並且我們認為這將繼續對業務產生積極影響，因為我們將繼續執行生產力計劃以及我們為提高盈利能力而正在做的事情，這是另一個大片。然後可能最不愉快的部分是 1 億美元的資本支出，考慮到供應鏈問題的步伐，我們認為今年我們無法投入。

Our next question will come from Alex Rygiel with B. Riley.

我們的下一個問題將來自 Alex Rygiel 和 B. Riley。

Very nice quarter, gentlemen. Quick question, Peter. at the very end, and it kind of goes back to the last question here, but you referenced line of sight towards $3 billion in free cash flow. Is this in reference to your 2022 guidance? Or is that incrementally over the next, say, 12 months?

非常好的季度，先生們。快速提問，彼得。最後，有點像這裡的最後一個問題，但你提到了 30 億美元的自由現金流。這是參考您的 2022 年指導嗎？還是在接下來的 12 個月內逐漸增加？

No, that's the guidance. So $2.75 billion. I may have taken some liberty and round it up to $3 billion. We'll continue to watch, obviously, the results as the year progresses and if there's more there, I propose we'll deliver it.

不，這是指導。所以27.5億美元。我可能會冒昧地將其四捨五入到 30 億美元。顯然，隨著時間的推移，我們將繼續觀察結果，如果還有更多，我建議我們將提供它。

Excellent. And then can you remind us what your lag time is to the spot price for commodities? And then as it relates to pricing in your non-commodities business, have you seen any products that are obviously manufactured by others? Do we see anyone cut prices yet?

出色的。然後你能提醒我們你對商品現貨價格的滯後時間是多少？然後，當它涉及到您的非商品業務的定價時，您是否看到過任何明顯由其他人製造的產品？我們看到有人降價了嗎？

It's about 1/4 between what the market moves at and what we would expect to flow through our COGS. On average, it's very open. It's a pretty wide bell curve, but yes, it's about 1/4. And I guess the answer to that is no. We have not seen any one cutting prices into this market with the exception of people who are following the commodity prices, right? I mean that is common. That happens all the time, good or bad.

市場走勢與我們預計通過我們的 COGS 流動的價格之間大約有 1/4。平均而言，它非常開放。這是一個相當寬的鐘形曲線，但是是的，大約是 1/4。我想答案是否定的。除了跟隨商品價格的人，我們沒有看到任何人降價進入這個市場，對吧？我的意思是這很常見。這種情況一直在發生，無論好壞。

Our next question will come from Steven Ramsey with Thompson Research Group.

我們的下一個問題將來自湯普森研究小組的史蒂文拉姆齊。

I wanted to touch on just one topic replenishing inventory given potential slowing of single-family demand, how are you thinking about replenishing inventory when you want to be a trustworthy source for builders and balance that against slowing demand? And then are you replenishing now at the same rate as the first half? Or do you plan for that to happen in the second half?

鑑於單戶住宅需求可能放緩，我只想談一個補充庫存的話題，當您想成為建築商的可信賴來源並平衡需求放緩時，您如何考慮補充庫存？然後你現在的補貨速度和上半年一樣嗎？或者你打算在下半年發生這種情況？

Yes. We're just running the same play. We always do, Steven. Really, this is normal op for us. Just like normal seasonality, we continue to align our purchases with the inbound flow of orders. We maintain appropriate inventory on hand levels usually on a days basis, but really down to a granular level by market, sometimes by location, depending on the SKUs under consideration. Certainly, it's something that we were careful about from the perspective, you can never run out, right? If you run out, it better be the suppliers but it better not be on us. So that's a requirement. That's a commitment we make to our customers and something that we work very, very hard to ensure -- but we're going to -- we're still running the same play in a down market as an upmarket in terms of how we think about ensuring the right amount of supply on hand.

是的。我們只是在演同一場戲。我們總是這樣做，史蒂文。真的，這對我們來說是正常的操作。就像正常的季節性一樣，我們繼續將我們的採購與入站訂單流保持一致。我們通常以天為單位維持適當的手頭庫存水平，但實際上會根據所考慮的 SKU 按市場（有時按地點）細化到細化水平。當然，從這個角度來看，這是我們小心翼翼的事情，你永遠不會用完，對吧？如果你用完了，最好是供應商，但最好不要在我們身上。所以這是一個要求。這是我們對客戶做出的承諾，也是我們非常非常努力地確保的事情——但我們會——就我們的思維方式而言，我們在低端市場和高端市場中的表現仍然相同關於確保手頭的適量供應。

And our last question today will come from Ryan Gilbert with BTIG.

我們今天的最後一個問題將來自 BTIG 的 Ryan Gilbert。

First question for me on gross margin, just given the lag between commodity price and when it hits your COGS I know that the reduced use of fixed-price contracts has reduced volatility in your gross margin. But just given what commodity prices have done, could we see that be a tailwind to gross margin in the third quarter relative to the second?

我的第一個問題是毛利率，考慮到商品價格與達到 COGS 之間的滯後性，我知道固定價格合約的使用減少降低了毛利率的波動性。但考慮到大宗商品價格的表現，我們是否可以看到第三季度相對於第二季度的毛利率是順風？

When it comes to commodities, I would say probably not. I think based on what we're seeing in terms of performance of the business. If anything, it's more competitive, not less as things normalize, that's kind of our expectation don't see it eroding in a significant way.

談到大宗商品，我會說可能不會。我認為基於我們在業務表現方面看到的情況。如果有的話，它更具競爭力，而不是隨著事情正常化而減少，這是我們的期望，不要看到它以顯著的方式受到侵蝕。

But yes, I mean, I think there's certainly an opportunity for increased competitiveness. If we're going to be competitive in any part of our business, it's absolutely the commodity space in terms of a gross margin normalizing more quickly than it has.

但是，是的，我的意思是，我認為肯定有機會提高競爭力。如果我們要在業務的任何部分具有競爭力，就毛利率而言，絕對是商品空間的正常化速度比它更快。

Okay. Got it. And second question, for me is on organic growth over the last few quarters, it's really broken away from single-family starts growth, whereas if you go back over a few years, it's, I think, pretty closely tracked single-family starts.

好的。知道了。第二個問題，對我來說，關於過去幾個季度的有機增長，它確實脫離了單戶住宅的增長，而如果你回顧幾年，我認為它與單戶住宅的開工情況密切相關。

Do you have a view on when the core organic, I guess, kind of reverts back to approximating single-family starts growth? Or do you think we can stay at this elevated level for some time?

你對我猜核心有機何時恢復到近似單戶家庭開始增長有看法嗎？或者你認為我們可以在這個更高的水平上保持一段時間嗎？

I think I have a couple of different answers to that question. When we're talking about margins, I think we've been very, very clear that is going to return to normal over time. I think the other part of that answer though is really around value-add. Value-add is an important part of the mix. Their growth is substantially higher than the rest of the business.

我想我對這個問題有幾個不同的答案。當我們談論利潤率時，我認為我們已經非常非常清楚隨著時間的推移會恢復正常。我認為該答案的另一部分實際上是圍繞增值。增值是組合的重要組成部分。他們的增長遠高於其他業務。

And while there's certainly a gross margin component to that, we believe that, that is very sticky like Dave was referring to earlier and that, that is going to be held on to in terms of an important resource by the homebuilding community, and we're going to continue to invest and to be that partner for them. So we do think that's sticky in the long term.

雖然這肯定有一個毛利率成分，但我們相信，這就像戴夫之前提到的那樣非常粘稠，而且這將作為住宅建築社區的重要資源而保留，我們將繼續投資並成為他們的合作夥伴。因此，我們確實認為這在長期內具有粘性。

Okay. Got it. And then just a quick final question on July trends. I think you mentioned that demand remains strong. Are there any numbers you can put to kind of quantify the strength that you're seeing so far in July or you saw in July?

好的。知道了。然後是關於 7 月趨勢的最後一個快速問題。我認為您提到需求仍然強勁。是否有任何數字可以量化您在 7 月迄今看到的或在 7 月看到的強度？

No. I think continued is a good way to characterize it. We feel good about July, and we're going to continue to be reactive and responsive, maybe better said to the market dynamics that we're faced with. But right now, we are hitting on all cylinders and focusing on our customers.

不，我認為繼續是描述它的好方法。我們對 7 月感覺良好，我們將繼續保持反應和響應，也許更好地說明我們面臨的市場動態。但是現在，我們正在全力以赴並專注於我們的客戶。

Thank you, ladies and gentlemen. This concludes today's event. You may now log off and disconnect. Have a great day.

謝謝你們，女士們，先生們。今天的活動到此結束。您現在可以註銷並斷開連接。祝你有美好的一天。