(BLDR) 2023 Q1 法說會逐字稿

Good day, and welcome to the Builders FirstSource First Quarter 2023 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by management and the question-and-answer session. (Operator Instructions) I'd like to turn the call over to Mr. Michael Neese, Senior Vice President, Investor Relations for Builders FirstSource. Please go ahead, sir.

美好的一天，歡迎來到 Builders FirstSource 2023 年第一季度收益電話會議。今天的電話會議計劃持續約 1 小時，包括管理層的發言和問答環節。 （操作員說明）我想把電話轉給 Builders FirstSource 投資者關係部高級副總裁 Michael Neese 先生。請繼續，先生。

Thank you, Shelby. Good morning, and welcome to our first quarter earnings call. With me on the call are Dave Rush, our CEO; and Peter Jackson, our CFO. Today, we will review our results for the first quarter of 2023. The earnings release, investor presentation 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，謝爾比。早上好，歡迎來到我們的第一季度財報電話會議。與我通話的是我們的首席執行官戴夫·拉什 (Dave Rush)；和我們的首席財務官彼得傑克遜。今天，我們將回顧 2023 年第一季度的業績。收益發布、投資者介紹可在我們的網站 investors.bldr.com 上獲取。我們將在通話期間參考投資者介紹中的幾張幻燈片。

The results discussed today include GAAP and non-GAAP results adjusted for certain items. We provide these non-GAAP results for informational purposes, and they should 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 where applicable and a discussion of why we believe they'd 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。我們提供這些非 GAAP 結果僅供參考，對於最直接可比的 GAAP 措施，應單獨考慮它們。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 措施與適用的相應 GAAP 措施的協調，以及我們認為它們對投資者有用的原因的討論。

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

我們在新聞稿和本次電話會議上的評論包含《私人證券訴訟改革法》含義內的前瞻性和警示性陳述以及對未來結果的預測。請查看今天的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。有了這個，我想把電話轉給戴夫。

Thank you, Mike. Good morning, everyone, and thanks for joining our call. Our start to 2023 has exceeded our expectations as the work that we have put into transforming Builders FirstSource into the premier supplier of building product solutions is driving tangible results. We are confident that the resilience of our business and the exceptional positioning with our customers will become increasingly evident to the market as we progress through a dynamic year in 2023. Despite a challenging macro backdrop, we performed above forecast due to the strength of our product portfolio, execution on our strategic priorities and the tireless efforts of our team members.

謝謝你，邁克。大家早上好，感謝您加入我們的電話會議。我們到 2023 年的開局超出了我們的預期，因為我們為將 Builders FirstSource 轉變為建築產品解決方案的主要供應商所做的工作正在取得切實成果。我們相信，隨著我們在充滿活力的 2023 年取得進展，我們業務的彈性和與客戶的卓越定位將在市場上變得越來越明顯。儘管宏觀背景充滿挑戰，但由於我們產品的實力，我們的表現超出了預期投資組合、執行我們的戰略重點以及我們團隊成員的不懈努力。

We are managing through this complex environment by leveraging our best-in-class distribution footprint and end market exposure. We remain committed to enhancing our customer relationships by being the easiest in the industry to do business with while driving improvements that will make home building more affordable and efficient. Our unrelenting emphasis on operational excellence positions us well to continue to execute our goals. We are driving share growth and mix improvement while continuing to grow through accretive acquisitions. Our recent transactions allow us to further expand our value-added offerings and reach a more diverse customer base in attractive markets.

我們通過利用我們一流的分銷足跡和終端市場曝光度來管理這個複雜的環境。我們仍然致力於通過成為業內最容易開展業務的公司來加強我們的客戶關係，同時推動改進，使住宅建設更實惠、更高效。我們對卓越運營的不懈重視使我們能夠繼續執行我們的目標。我們正在推動份額增長和組合改善，同時通過增值收購繼續增長。我們最近的交易使我們能夠進一步擴大我們的增值產品，並在有吸引力的市場中接觸到更多樣化的客戶群。

While macroeconomic factors continue to dominate the headlines, we are closely monitoring local market activity by staying close to our customers and maintaining focus on our strategy. We are controlling what we can control and running the business for long-term value creation. Elevated mortgage rates and affordability challenges are headwinds, but feedback from some homebuilders has suggested that underlying demand has been resilient when we have seen mortgage rates dip. Though the results vary slightly by region, our April sales continue to offer encouraging signs that green shoots are starting to emerge across homebuilding.

雖然宏觀經濟因素繼續佔據頭條新聞，但我們通過與客戶保持密切聯繫並繼續關注我們的戰略，密切關注當地市場活動。我們正在控制我們可以控制和經營業務的長期價值創造。抵押貸款利率上升和負擔能力挑戰是不利因素，但一些房屋建築商的反饋表明，當我們看到抵押貸款利率下降時，潛在需求一直具有彈性。儘管結果因地區而略有不同，但我們 4 月份的銷售繼續提供令人鼓舞的跡象，表明房屋建築開始出現新芽。

On Slide 4, we show what we achieved in the first quarter. Among the highlights, our gross margin percentage increased 300 basis points to 35.3%, driven by the strength of our Multi-Family value-added product category. Our recent acquisitions, which have diversified our footprint and enhanced our exposure to the Multi-Family sector, have been a strong contributor for us this first quarter.

在幻燈片 4 上，我們展示了我們在第一季度取得的成就。在亮點中，我們的毛利率增長了 300 個基點，達到 35.3%，這得益於我們的多戶型增值產品類別的實力。我們最近的收購使我們的足跡多樣化並增加了我們在多戶家庭領域的曝光度，這對我們第一季度的貢獻很大。

Our EBITDA margin remained healthy in the first quarter as we executed well and drove improved productivity across the business. It is important to note that during the quarter with sales down 31.6%, our adjusted EBITDA margin was only off by 130 basis points compared to the prior year quarter. This reinforces our belief that we can sustain a double-digit EBITDA margin throughout this year, assuming single-family starts declined by no more than 25%.

我們的 EBITDA 利潤率在第一季度保持健康，因為我們執行良好並推動提高了整個業務的生產力。值得注意的是，本季度銷售額下降 31.6%，我們調整後的 EBITDA 利潤率僅比去年同期下降 130 個基點。這加強了我們的信念，即我們可以在今年全年維持兩位數的 EBITDA 利潤率，假設單戶家庭開工率下降不超過 25%。

On Slide 5, while core organic sales declined relative to prior year as Single-Family housing demand slowed, I would point out that Multi-Family and R&R and Other both grew. Multi-Family was a tailwind this quarter, and we expect this strength to continue for the remainder of 2023. Following recent acquisitions, Multi-Family (inaudible) more than doubled to 13% of our net sales in the first quarter versus 6% this time last year. We continue to focus on improving productivity, and we are pleased to deliver $34 million in savings for the quarter as we leverage our BFS 1-Team Operating System. We are working hard to improve efficiencies through operational excellence focused on manufacturing and delivery improvements. This is evidenced by our 96% in full delivery metric. We are dedicated to reducing our customers' cycle times with full deliveries and fewer trips to the job site, strengthening our customer relationships and helping to lower their total cost.

在幻燈片 5 中，雖然隨著單戶住宅需求放緩，核心有機銷售額與上一年相比有所下降，但我要指出的是，多戶住宅和 R&R 及其他均有所增長。多戶型是本季度的順風車，我們預計這種勢頭將在 2023 年剩餘時間內持續。在最近的收購之後，多戶型（聽不清）在第一季度增加了一倍多，占我們淨銷售額的 13%，而今年為 6%去年的時候。我們繼續專注於提高生產力，我們很高興在本季度利用我們的 BFS 1-Team 操作系統節省了 3400 萬美元。我們正在努力通過專注於製造和交付改進的卓越運營來提高效率。我們 96% 的完全交付指標證明了這一點。我們致力於通過全面交付和減少前往工作地點的次數來縮短客戶的周期時間，加強我們的客戶關係並幫助降低他們的總成本。

We remain focused on the importance of controlling SG&A and other expenses. This includes efficient capacity utilization, ongoing optimization of our footprint and balancing the need for variable cost reductions against future capacity needs. In May 2020, we released our first Corporate Social Responsibility report. We expect to release our 2023 CSR report later this month and look forward to sharing our progress on sustainability with our stakeholders.

我們仍然關注控制 SG&A 和其他費用的重要性。這包括高效的產能利用、持續優化我們的足跡以及平衡可變成本削減與未來產能需求的需求。 2020 年 5 月，我們發布了第一份企業社會責任報告。我們預計將在本月晚些時候發布我們的 2023 年企業社會責任報告，並期待與我們的利益相關者分享我們在可持續發展方面取得的進展。

We are committed to addressing the risk of climate change, including taking actions to reduce our greenhouse gas emissions. In 2022 and early 2023, we undertook and completed an extensive project to consolidate and report our energy use data. Through this work, we now monitor our Scope 1 and Scope 2 greenhouse gas emissions across our facilities and fleet and expect to report our 2022 greenhouse gas emissions later this month. We are leveraging this 2022 carbon emissions baseline to set appropriate emissions reduction goals.

我們致力於應對氣候變化的風險，包括採取行動減少我們的溫室氣體排放。 2022 年和 2023 年初，我們開展並完成了一項廣泛的項目，以整合和報告我們的能源使用數據。通過這項工作，我們現在監測我們的設施和車隊的範圍 1 和範圍 2 溫室氣體排放量，並預計將在本月晚些時候報告我們 2022 年的溫室氣體排放量。我們正在利用這一 2022 年碳排放基準來設定適當的減排目標。

When we talk about our high-performing BFS culture, safety is our first priority. I'm proud to say that we achieved a 22% reduction in our total recordable incident rate last year and have reduced it by another 30% so far this year. We continue to invest in our people by striving to make BFS the best place to work. We have improved benefits to better attract and retain high-performing talent and have trained over 99% of our team members to date on diversity, equity and inclusion initiatives.

當我們談論我們的高性能 BFS 文化時，安全是我們的首要任務。我很自豪地說，去年我們的可記錄事故總發生率降低了 22%，今年到目前為止又降低了 30%。我們通過努力使 BFS 成為最佳工作場所，繼續投資於我們的員工。我們改善了福利，以更好地吸引和留住高績效人才，並且迄今為止，我們已經對 99% 以上的團隊成員進行了多元化、公平和包容性舉措方面的培訓。

Turning to M&A on Slide 6. While the current M&A pipeline remains slower than prior years, we continue to target attractive opportunities with a disciplined approach. Thus far in 2023, these have been smaller deals. But given the highly fragmented nature of our industry, we still believe in our goal to invest an average of $500 million in M&A per year for the next several years.

轉向幻燈片 6 中的併購。雖然目前的併購渠道仍然比往年慢，但我們繼續以有紀律的方法瞄準有吸引力的機會。到 2023 年為止，這些交易規模較小。但鑑於我們行業高度分散的性質，我們仍然相信我們的目標是在未來幾年內每年平均投資 5 億美元用於併購。

As we mentioned on our call in February, we acquired Noltex Truss during the first quarter, a 5-location Truss manufacturer providing building components to the Single and Multi-Family markets throughout Texas. Since then, we have acquired 2 more companies. Last month, we acquired Builders Millwork Supply, a millwork distributor serving Anchorage. And this past Monday, we acquired JB Millworks, which contributes important value-adding capacity in the Chattanooga area. We are excited to welcome these businesses and new team members to the BFS family.

正如我們在 2 月份的電話會議上提到的那樣，我們在第一季度收購了 Noltex Truss，這是一家擁有 5 個工廠的 Truss 製造商，為德克薩斯州的單戶和多戶市場提供建築組件。從那時起，我們又收購了 2 家公司。上個月，我們收購了 Builders Millwork Supply，這是一家服務於安克雷奇的木製品經銷商。上週一，我們收購了 JB Millworks，它在查塔努加地區貢獻了重要的增值能力。我們很高興歡迎這些企業和新團隊成員加入 BFS 大家庭。

Moving to Slide 7 and capital allocation. In the first quarter, we deployed approximately $800 million of capital towards organic growth investments, Tuck-in M&A and share repurchases, and we have cumulatively deployed $4.3 billion against our 2025 $7 billion to $10 billion goal. Looking forward, I am happy to announce we plan to host another Investor Day in December in Atlanta, where we will update our progress on our strategic initiatives, including the latest on our digital offerings. We will also provide a tour of our nearby robotic truss facility. We are planning to release more details in the coming months.

轉到幻燈片 7 和資本配置。第一季度，我們為有機增長投資、合併併購和股票回購部署了大約 8 億美元的資金，我們已經累計部署了 43 億美元，以實現我們到 2025 年 70 億至 100 億美元的目標。展望未來，我很高興地宣布，我們計劃於 12 月在亞特蘭大舉辦另一個投資者日，屆時我們將更新我們在戰略計劃方面的進展，包括我們數字產品的最新進展。我們還將參觀我們附近的機器人桁架設施。我們計劃在未來幾個月內發布更多詳細信息。

Now let's turn to Slide 8, and provide an update on our digital strategy. We continue to play a pioneering role in the digital transformation of the homebuilding industry, growing our capabilities in 2022 and are working to drive enhancements and adoption throughout 2023. We are executing our digital product development plan and introducing our customers to the tools and their benefits through the myBLDR.com platform. We firmly believe our long-term commitment to investing in digital innovations and technologies will deliver greater efficiency across homebuilding, enhance our product and service offerings and extend BFS's lead as the partner of choice in the market.

現在讓我們轉到幻燈片 8，並提供有關我們數字戰略的最新信息。我們將繼續在住宅建築行業的數字化轉型中發揮先鋒作用，在 2022 年增強我們的能力，並努力在整個 2023 年推動改進和採用。我們正在執行我們的數字產品開發計劃，並向我們的客戶介紹這些工具及其優勢通過 myBLDR.com 平台。我們堅信，我們對投資數字創新和技術的長期承諾將提高整個住宅建築的效率，增強我們的產品和服務，並擴大 BFS 作為市場首選合作夥伴的領先地位。

During our last call, we announced the launch of our myBLDR.com customer portal, which will ultimately provide our homebuilder customers with access to easy-to-use digital tools to virtually design and build their homes. One of those applications is Home Configure, which is already in use for the significant number of customers, while we continue to develop and pilot new capabilities that will be deployed throughout 2023.

在上次通話中，我們宣布推出 myBLDR.com 客戶門戶網站，最終將為我們的住宅建築商客戶提供易於使用的數字工具，以虛擬方式設計和建造他們的房屋。其中一個應用程序是 Home Configure，它已經為大量客戶使用，同時我們將繼續開發和試驗將在整個 2023 年部署的新功能。

Home Configure is a 3-dimensional virtual application that allows the user to configure a home while providing a more collaborative experience. These are the types of advancements putting us at the forefront of our industry as we continue to rapidly scale a full suite of capabilities.

Home Configure 是一個 3 維虛擬應用程序，允許用戶配置家庭，同時提供更具協作性的體驗。隨著我們繼續快速擴展全套功能，這些進步使我們處於行業的前沿。

In Q1, we completed over 6,000 automated window and lumber take-offs, an 80% increase over Q4 2022, and we had nearly 15,000 visitors who started 56,000 sessions in our Home Configure [tour]. This momentum gives us early confidence that our digital strategy remains on schedule, and we will continue to enhance the platform to drive adoption. Our digital tools will help us integrate more closely with our customers and ultimately result in incremental sell-through of our 4 building products as we gain share of wallet. We are on track to gain an incremental $1 billion in sales by 2026.

在第一季度，我們完成了 6,000 多次自動窗戶和木材起飛，比 2022 年第四季度增長了 80%，並且我們有近 15,000 名訪客在我們的 Home Configure [導覽] 中開始了 56,000 場會議。這種勢頭使我們早日相信我們的數字戰略會按計劃進行，我們將繼續增強平台以推動採用。我們的數字工具將幫助我們與客戶更緊密地結合，並最終隨著我們獲得錢包份額而增加我們 4 種建築產品的銷售量。我們有望在 2026 年之前實現 10 億美元的銷售額增量。

You have heard me say that our people are the building blocks of our organization. They inspire me every day to continue the evolution and growth of our People First culture. Today, I'm delighted to share a success story that represents the best of our sales team, Mitchell Ingram from Blairsville, Georgia. Mitchell's journey began with us 17 years ago as a CDL driver, and from the very beginning, he stood out for delivering exceptional customer service. For 5 years, Mitchell was the driver that every customer wanted as they flawlessly delivered materials to their job sites, earning their trust and loyalty.

您已經聽我說過，我們的員工是我們組織的基石。他們每天都激勵我繼續發展和發展我們以人為本的文化。今天，我很高興分享一個代表我們銷售團隊中最優秀的人的成功故事，來自佐治亞州布萊爾斯維爾的 Mitchell Ingram。 Mitchell 的旅程始於 17 年前，作為一名 CDL 司機，從一開始，他就因提供卓越的客戶服務而脫穎而出。 5 年來，Mitchell 一直是每個客戶都想要的司機，因為他們將材料完美地運送到他們的工作地點，贏得了他們的信任和忠誠度。

That natural ability for exceptional customer service led Mitchell being promoted to inside sales, where he continued to excel and quickly became the go-to salesperson for both our internal team and our customers.

卓越客戶服務的天生能力使米切爾被提拔到內部銷售部門，在那裡他繼續表現出色，並迅速成為我們內部團隊和客戶的首選銷售人員。

Today, as a key member of our outside sales team, Mitchell has become the market's top salesperson and recently won a Leader of the Pack award, recognizing him as 1 of our top sales team members. On behalf of BFS, I extend my warmest congratulations to Mitchell for his outstanding contributions and achievements. At BFS, we have very -- we have many similar remarkable stories, further exemplifying our commitment to the team members that make us so successful. Their dedication and commitment are invaluable to our team's success, and we are fortunate to have them.

今天，作為我們外部銷售團隊的重要成員，Mitchell 已成為市場頂級銷售人員，並且最近獲得了 Leader of the Pack 獎，承認他是我們頂級銷售團隊成員之一。我代表BFS，對米切爾的傑出貢獻和成就表示最熱烈的祝賀。在 BFS，我們有很多類似的非凡故事，進一步證明了我們對使我們如此成功的團隊成員的承諾。他們的奉獻精神和承諾對我們團隊的成功來說是無價的，我們很幸運能擁有他們。

I will conclude by saying that our differentiated platform, experienced management team and clear focus on delivering value-added solutions to our customers. have positioned us well to win in the market and outperform. I'm very excited to lead this winning team.

最後，我要說的是，我們差異化的平台、經驗豐富的管理團隊以及明確專注於為客戶提供增值解決方案。使我們能夠在市場中取勝並跑贏大市。我很高興能帶領這支獲勝的球隊。

I'll now turn the call over to Peter to discuss our first quarter financial results in greater detail.

我現在將電話轉給彼得，更詳細地討論我們第一季度的財務業績。

Thank you, Dave, and good morning, everyone. I'm pleased to report that we delivered exceptional gross margins in the first quarter despite a challenging macro backdrop. The advantages of value-added products and services are evident and key to our outperformance. We generated strong free cash flow as we leveraged our best-in-class operating platform and extended our track record of effective cost containment and working capital management. Our robust financial position, the industry-leading products and solutions and reputation for providing excellent customer service allow us to successfully navigate macro volatility and position us for above-market growth in the years to come.

謝謝你，戴夫，大家早上好。我很高興地報告，儘管宏觀背景充滿挑戰，但我們在第一季度實現了出色的毛利率。增值產品和服務的優勢是顯而易見的，也是我們表現出色的關鍵。由於我們利用一流的運營平台並擴展了我們在有效成本控制和營運資金管理方面的記錄，我們產生了強勁的自由現金流。我們穩健的財務狀況、行業領先的產品和解決方案以及提供卓越客戶服務的聲譽使我們能夠成功應對宏觀波動，並使我們在未來幾年實現高於市場的增長。

I will cover 3 topics with you this morning. First, I'll recap our first quarter results. Second, I'll provide an update on capital deployment. And finally, I'll discuss our second quarter guidance and provide an update on our illustrative full year scenarios.

今天早上我將與您討論 3 個主題。首先，我將回顧一下我們第一季度的業績。其次，我將提供有關資本部署的最新信息。最後，我將討論我們的第二季度指引，並提供有關我們說明性全年情景的更新。

Let's begin by reviewing our first quarter performance on Slide 10. We delivered $3.9 billion in net sales. Core organic sales decreased by 26%, attributable to a 34% decline in Single-Family due to slowing demand and compared to a strong first quarter of 2022. Multi-Family was a bright spot that reflects the benefit of our expansion strategy in this category, growing by nearly 70%. The growth was driven by multiple acquisitions and a strong rental market. R&R and Other grew by more than 3%, mainly attributable to increased sales focus and capacity versus prior year.

讓我們首先回顧幻燈片 10 上的第一季度業績。我們實現了 39 億美元的淨銷售額。與 2022 年第一季度的強勁勢頭相比，由於需求放緩，單戶型銷售額下降了 34%，因此核心有機銷售額下降了 26%。多戶型銷售額是一個亮點，反映了我們在該類別中的擴張戰略的優勢, 增長近 70%。這一增長是由多項收購和強勁的租賃市場推動的。 R&R 和其他增長超過 3%，主要是由於與上一年相比，銷售重點和產能有所增加。

The cumulative effect of our acquisitions over the past year contributed approximately 5 percentage points of growth to net sales and 1 additional selling day had a favorable impact of 1%. While core organic sales and value-added products decreased by nearly 17% due to slowing Single-Family starts, this is almost 10 points better than the overall core organic result and underscores the resilience of the value-added product portfolio. Importantly, value-added products represent 56% of our net sales in the quarter, reflecting our position as the supplier of choice for these valuable, high-margin products.

過去一年我們收購的累積效應為淨銷售額貢獻了大約 5 個百分點的增長，另外 1 個銷售日產生了 1% 的有利影響。雖然核心有機銷售額和增值產品由於單戶住宅開工放緩而下降了近 17%，但這比整體核心有機結果高出近 10 個百分點，並凸顯了增值產品組合的彈性。重要的是，增值產品占我們本季度淨銷售額的 56%，反映了我們作為這些有價值的高利潤產品的首選供應商的地位。

During the first quarter, gross profit was $1.4 billion, a decrease of 25.2% compared to the prior year period. Gross margin increased 300 basis points to 35.3%, with more than half of the 300 basis points change coming from our Multi-Family value-added products and services. SG&A decreased $64.4 million to $904.2 million, mainly due to lower variable compensation, partially offset by additional expenses from operations acquired in the last year. Acquisitions increased SG&A by $46 million in the quarter. As a percentage of net sales, total SG&A increased by 630 basis points to 23.3%, primarily attributable to decreased leverage to net sales.

第一季度，毛利潤為 14 億美元，同比下降 25.2%。毛利率增長 300 個基點至 35.3%，其中超過一半的 300 個基點變化來自我們的多戶型增值產品和服務。 SG&A 減少 6440 萬美元至 9.042 億美元，這主要是由於可變薪酬較低，部分被去年收購的業務的額外費用所抵消。本季度收購使 SG&A 增加了 4600 萬美元。作為淨銷售額的百分比，SG&A 總額增加了 630 個基點，達到 23.3%，這主要是由於對淨銷售額的槓桿作用下降。

We remain focused on disciplined cost management and are taking appropriate actions in response to volume dynamics on a market-by-market basis. As we have stated in the past, approximately 70% of SG&A expense is variable with volumes. We are striking the right balance between calibrating operations based on changes in volume and protecting capacity for future growth.

我們仍然專注於嚴格的成本管理，並在逐個市場的基礎上採取適當的行動來應對數量動態。正如我們過去所說，大約 70% 的 SG&A 費用隨數量變化。我們正在根據數量變化校準運營和保護未來增長的容量之間取得適當的平衡。

Adjusted EBITDA was approximately $632 million, a decline of 37%, primarily driven by lower net sales, including a decline in core organic products attributable to a slowing housing market and commodity deflation. Adjusted EBITDA margin was a robust 16.3%. Adjusted net income was $410 million, down from an adjusted net income of $701 million in the prior year quarter. Adjusted earnings per diluted share was $2.96 compared to $3.90 in the prior year period. The decrease in adjusted EPS was favorably offset by our repurchase of more than 7.5 million shares or $0.15 per share during the quarter.

調整後的 EBITDA 約為 6.32 億美元，下降 37%，主要原因是淨銷售額下降，包括房地產市場放緩和大宗商品通貨緊縮導致核心有機產品下降。調整後的 EBITDA 利潤率高達 16.3%。調整後的淨收入為 4.1 億美元，低於去年同期的調整後淨收入 7.01 億美元。調整後每股攤薄收益為 2.96 美元，上年同期為 3.90 美元。調整後每股收益的下降被我們在本季度回購超過 750 萬股或每股 0.15 美元所抵消。

Our first quarter results beat the guidance we provided in February, supported by gross margin strength as value-added products over delivered and productivity came in faster than forecast. As a result, we are increasingly confident that our long-term normalized gross margin percentage is now at 28% plus versus our previous expectation of 27% plus.

我們的第一季度業績超出了我們在 2 月份提供的指導，這得益於毛利率強勁，因為增值產品超額交付，生產力的增長速度快於預期。因此，我們越來越有信心我們的長期標準化毛利率現在為 28% 以上，而我們之前的預期為 27% 以上。

Now let's turn to our cash flow, balance sheet and liquidity on Slide 12. Our first quarter operating cash flow was approximately $654 million, up from $180 million in the prior year, mainly attributable to disciplined working capital management and improved product mix as well as effective pricing and cost management. Capital expenditures were $100 million. All in, we delivered robust free cash flow of approximately $554 million. Free cash flow yield is 28.5% while operating cash flow return on invested capital was 47.1% for the trailing 12 months ended March 31. Our net debt to adjusted EBITDA ratio was approximately 0.8x. Excluding our ABL, we have no long-term debt maturities until 2030. At quarter end, our total liquidity was $1.4 billion, consisting of $1.2 billion in net borrowing availability under the revolving credit facility and $144 million of cash on hand.

現在讓我們看看幻燈片 12 上的現金流、資產負債表和流動性。我們第一季度的運營現金流約為 6.54 億美元，高於去年同期的 1.8 億美元，這主要歸因於嚴格的營運資本管理和改進的產品組合以及有效的定價和成本管理。資本支出為 1 億美元。總而言之，我們交付了約 5.54 億美元的強勁自由現金流。截至 3 月 31 日的過去 12 個月，自由現金流收益率為 28.5%，而運營現金流投資資本回報率為 47.1%。我們的淨債務與調整後 EBITDA 的比率約為 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。在本季度末，我們的流動資金總額為 14 億美元，包括循環信貸額度下的 12 億美元淨借款和 1.44 億美元手頭現金。

Moving to capital deployment. During the first quarter, we repurchased approximately 7.5 million shares for $628 million at an average stock price of $83.17 a share. In addition, we have repurchased approximately 3.8 million shares so far in the second quarter for $348 million at an average stock price of $91.90. In total, we have repurchased 39% of our outstanding shares since August of 2021.

轉向資本部署。第一季度，我們以每股 83.17 美元的平均股價回購了約 750 萬股股票，價值 6.28 億美元。此外，到目前為止，我們在第二季度以 3.48 億美元的價格回購了大約 380 萬股股票，平均股價為 91.90 美元。自 2021 年 8 月以來，我們總共回購了 39% 的已發行股票。

As we have completed our prior share repurchase authorization, the Board of Directors decided to approve a new $1 billion share repurchase authorization. We remain disciplined stewards of capital, and we'll continue to look for organic and inorganic growth opportunities and to repurchase shares at an attractive value while maintaining our fortress balance sheet.

由於我們已經完成了之前的股票回購授權，董事會決定批准一項新的 10 億美元的股票回購授權。我們仍然是紀律嚴明的資本管理者，我們將繼續尋找有機和無機增長機會，並以具有吸引力的價值回購股票，同時保持我們穩固的資產負債表。

Now, I would like to discuss our guide on Slide 13. Given the ongoing challenging conditions in the housing market, we are continuing to provide quarterly guidance. We will reassess our full year guidance for actual and base business as the year progresses. For the second quarter, we expect net sales to be in the range of $4 billion to $4.2 billion and adjusted EBITDA to be in the range of $525 million to $575 million, with an adjusted EBITDA margin in the range of 13.1% to 13.7%. Our adjusted EBITDA guide for the second quarter assumes gross margins in the 32% to 34% range. Our second quarter guidance includes the following full year assumptions, which are also outlined in the earnings release and on Slide 14. We expect total capital expenditures in the range of $325 million to $375 million.

現在，我想討論我們在幻燈片 13 上的指南。鑑於房地產市場持續面臨挑戰，我們將繼續提供季度指南。隨著時間的推移，我們將重新評估我們對實際和基礎業務的全年指導。對於第二季度，我們預計淨銷售額將在 40 億美元至 42 億美元之間，調整後的 EBITDA 將在 5.25 億美元至 5.75 億美元之間，調整後的 EBITDA 利潤率將在 13.1% 至 13.7% 之間。我們調整後的第二季度 EBITDA 指南假設毛利率在 32% 至 34% 之間。我們的第二季度指引包括以下全年假設，這些假設也在收益發布和幻燈片 14 中概述。我們預計總資本支出在 3.25 億美元至 3.75 億美元之間。

This includes continued investments in scaling our value-added products. We expect interest expense in the range of $150 million to $170 million, an effective tax rate between 23% and 25%, depreciation and amortization expenses in the range of $525 million to $575 million, no change in the number of selling days versus the prior year. And finally, we expect to deliver between $90 million and $110 million in annual productivity savings.

這包括繼續投資擴大我們的增值產品。我們預計利息支出在 1.5 億美元至 1.7 億美元之間，有效稅率在 23% 至 25% 之間，折舊和攤銷費用在 5.25 億美元至 5.75 億美元之間，銷售天數與之前相比沒有變化年。最後，我們預計每年可節省 9000 萬至 1.1 億美元的生產力。

We recognize that it is important to think about potential outcomes for the full year, so on Slide 15, we have updated our scenario analysis to demonstrate how we are positioned to generate resilient financial performance across a range of potential housing market and commodity conditions. As you can see, our strong Q1 performance and visibility into Q2 have meaningfully improved our expectations for each of the full year performance scenarios. If Single-Family starts are down 15% for the year, we now believe we can generate roughly $2.2 billion in adjusted EBITDA, which is up $500 million from our fourth quarter scenario analysis. This increased EBITDA expectation reflects stronger gross margins and productivity savings than we previously expected.

我們認識到考慮全年的潛在結果很重要，因此在幻燈片 15 中，我們更新了我們的情景分析，以展示我們如何定位以在一系列潛在的住房市場和商品條件下產生具有彈性的財務業績。正如您所看到的，我們強勁的第一季度業績和對第二季度的可見性顯著提高了我們對全年業績情景的預期。如果今年單戶住宅開工率下降 15%，我們現在相信我們可以產生大約 22 億美元的調整後 EBITDA，這比我們第四季度的情景分析增加了 5 億美元。這種增加的 EBITDA 預期反映了比我們之前預期更高的毛利率和生產力節省。

As I wrap up, I want to reiterate that we are exceptionally well positioned to drive our strategic goals forward. We believe that we can sustain a double-digit adjusted EBITDA margin this year, and we continue to see the benefits of our transformed business. I believe that our long-term normalized gross margin percentage is now at 28% or higher. I'm confident in our best-in-class operating platform will continue to set us up to generate substantial free cash flow, which provides further financial flexibility on top of our healthy balance sheet. We will also continue to diligently deploy capital and work to manage -- to maximize long-term shareholder value.

在我總結時，我想重申，我們非常有能力推動我們的戰略目標向前發展。我們相信今年我們可以維持兩位數的調整後 EBITDA 利潤率，並且我們將繼續看到轉型業務的好處。我相信我們的長期標準化毛利率現在為 28% 或更高。我相信我們一流的運營平台將繼續幫助我們產生可觀的自由現金流，從而在我們健康的資產負債表之上提供進一步的財務靈活性。我們還將繼續勤奮地配置資本並努力進行管理——以實現長期股東價值最大化。

With that, let me turn the call back over to Dave for his closing remarks.

有了這個，讓我把電話轉回給戴夫，聽取他的結束語。

Thanks, Peter. Let me close by saying that we feel really good about our strategy and our execution so far in 2023. Our investments in value-added products, productivity initiatives and digital solutions are all delivering on our goal to improve our customers' experience and partnership with BFS while driving growth over the long term. While 2023 still appears to be a challenging year for our industry, I'm confident that we can create value for our shareholders through executing our strategy, our focus on value-added products and services, and our disciplined deployment of capital towards growth opportunities.

謝謝，彼得。最後，我要說的是，到目前為止，我們對 2023 年的戰略和執行情況感到非常滿意。我們對增值產品、生產力計劃和數字解決方案的投資都在實現我們改善客戶體驗和與 BFS 合作的目標同時推動長期增長。雖然 2023 年對我們的行業來說似乎仍然是充滿挑戰的一年，但我相信，我們可以通過執行我們的戰略、專注於增值產品和服務以及我們對增長機會進行有紀律的資本部署來為股東創造價值。

Thank you again for joining us today. Operator, let's please open the call now for questions.

再次感謝您今天加入我們。接線員，讓我們現在打開電話詢問問題。

(Operator Instructions) And we'll take our first question from Matthew Bouley with Barclays.

（操作員說明）我們將從巴克萊銀行的 Matthew Bouley 那裡提出我們的第一個問題。

Congrats on the results. So jumping right to the gross margin question, you raised the long-term guide to -- the normalized guide to 28% plus. And I think I heard you say value add's a little better and productivity coming in faster. My question is, you talk about the benefits of kind of a transformed business, I mean, is this a view to some of these shorter-term trends that you're talking about? You got a little more visibility to the trough as a result? Or just what are some of the bigger underlying pieces, market share, et cetera, that give you confidence to say that now is the time to raise that gross margin target?

祝賀結果。所以直接跳到毛利率問題，你將長期指導提高到——標準化指導到 28% 以上。而且我想我聽到你說增值更好一點，生產力更快。我的問題是，你談到了某種轉型業務的好處，我的意思是，這是對你正在談論的一些短期趨勢的看法嗎？結果你對槽有了更多的了解？或者只是一些更大的基礎部分、市場份額等，讓你有信心說現在是提高毛利率目標的時候了？

Thanks Matt. Yes, it's a great question. We've been talking, well, as you know, about gross margins for quite a while now ever since the merger in trying to get a sense of where normal is. And we felt really good based on where the business was at that merger date, that 27% or better was something we felt good about on sort of a long-term normalized basis, taking out all the noise around supply chain (inaudible) and that type of thing. But we were continuing to look at it, right? We've been at it managing the business.

謝謝馬特。是的，這是一個很好的問題。好吧，正如你所知，自合併以來，我們一直在談論毛利率，試圖了解正常情況。根據業務在合併日期的位置，我們感覺非常好，27% 或更高是我們在某種長期標準化基礎上感覺良好的東西，消除了供應鏈周圍的所有噪音（聽不清）並且類型的東西。但我們一直在研究它，對吧？我們一直在管理業務。

But in the meantime, we've been working. So we've worked to improve our value-add as a percentage of the overall business, right? The acquisitions we've made, improving mix, it's grown faster. It's been more resilient. So the biggest component being just the increased mix of value-add on an ongoing basis, we think that's meaningful and important to our average gross margins over time. In addition, we've done a really good job internally at managing productivity even in the volume down market overall, certainly giving us a lot of confidence that the investments we've made in value-add productivity and automation have yielded the benefits we were expecting. So those 2 factors are the most powerful.

但與此同時，我們一直在努力。所以我們一直在努力提高我們的附加值佔整個業務的百分比，對嗎？我們進行的收購，改善組合，它增長得更快。它更有彈性。因此，最大的組成部分只是持續增加的增值組合，我們認為隨著時間的推移，這對我們的平均毛利率來說是有意義和重要的。此外，即使在整體市場銷量下降的情況下，我們在內部管理生產力方面也做得非常好，這當然讓我們充滿信心，我們在增值生產力和自動化方面所做的投資已經產生了我們的收益期待。所以這兩個因素是最強大的。

And the last one, I think, is as we've seen a market as down as it was in Q1. And I think we can all admit, this was a challenging year-over-year compare, we still performed very, very well. And that gives us the confidence that we needed to start moving that normalized margin up to 28% plus because we see that as being really proof positive of the value of what that product does for our customers and for us.

我認為，最後一個是我們看到的市場與第一季度一樣低迷。而且我想我們都可以承認，這是一個具有挑戰性的年度比較，我們仍然表現得非常非常好。這讓我們有信心開始將標準化利潤率提高到 28% 以上，因為我們認為這確實證明了該產品為我們的客戶和我們所做的價值。

Yes, I'd just add, Matt, that customers see those products as less price sensitive because they're solving problems for them. They're addressing labor concerns for them, and they're reducing cycle times for them, and they can make up some of those costs through the reduction of those cycle times. So that's why we focus on it, from being the easiest to do business with perspective and driving value for our customers.

是的，我只想補充一點，馬特，客戶認為這些產品對價格不太敏感，因為它們正在為他們解決問題。他們正在為他們解決勞動力問題，他們正在為他們減少週期時間，他們可以通過減少這些週期時間來彌補其中的一些成本。因此，這就是我們專注於它的原因，從最容易以遠見和為客戶推動價值的方式開展業務。

Got you. Okay. Great color. And then second one, kind of jumping into the near term. The Q2 EBITDA guide, I mean you're guiding in dollars and margin, I guess, to be lower than that of Q1, which is obviously unusual historically. And I know you're on this path to normalized margin, and so that looks to be part of that. But any other detail on what are some of the underlying assumptions around Q2 and why you would have such a kind of unusual seasonality there?

明白了好的。很棒的顏色。然後是第二個，有點跳入近期。 Q2 EBITDA 指南，我的意思是你以美元和利潤為指導，我猜，要低於第一季度，這在歷史上顯然是不尋常的。而且我知道你正走在通往標準化保證金的道路上，所以這看起來是其中的一部分。但是關於第二季度的一些基本假設是什麼以及為什麼那裡會有這種不尋常的季節性的任何其他細節？

Sure. Yes, and I'll let Dave talk to the overall market.

當然。是的，我會讓戴夫談談整個市場。

What I would say is this is consistent with what we have been communicating. This still assumes that we're going to continue to see the increased competitive environment, a challenging volume environment in Q2 and normalization that continues to flow through in margins and sales. So while we're absolutely confident in the business, I don't want anybody to think that there still aren't some difficult comps coming at least for the next quarter or 2, and that's really what you're seeing there in the numbers.

我要說的是，這與我們一直在溝通的內容是一致的。這仍然假設我們將繼續看到競爭加劇的環境、第二季度充滿挑戰的銷量環境以及利潤率和銷售額繼續流動的正常化。因此，雖然我們對業務絕對有信心，但我不希望任何人認為至少在下個季度或下兩個季度仍然沒有一些困難的組合，這就是你在數字中看到的.

So what we're hearing from customers is the word stability. You're not really hearing robust, you're hearing more things are stable. And that's kind of what we're using as the backdrop of our valuations for our forecast as well. There's increased optimism when mortgage rates stay consistent and the underlying demand supports a fairly resilient demand when mortgage rates stay consistent. But it's still a volatile overall environment, and we're working with that as a backdrop. And so we're feeling pretty good, but it's all on a relative basis.

所以我們從客戶那裡聽到的是穩定性這個詞。您並沒有真正聽到強勁的聲音，您聽到的更多是穩定的聲音。這也是我們用來作為我們預測估值背景的東西。當抵押貸款利率保持一致時，人們會更加樂觀，而當抵押貸款利率保持一致時，潛在需求會支持相當有彈性的需求。但它仍然是一個不穩定的整體環境，我們正在以此為背景進行工作。所以我們感覺很好，但這都是相對的。

All right. Dave, Peter. Good luck, guys.

好的。戴夫，彼得。祝大家好運。

And we'll take our next question from Mike Dahl with RBC Capital Markets.

我們將從 RBC Capital Markets 的 Mike Dahl 那裡回答下一個問題。

Just to kind of pick up on a couple of those points or questions that Matt had. When we think about the margins and gross margins specifically, I think clear enough in terms of your description of normal. In the first half of this year, you're basically guiding to the mid-30s, low to mid-30s gross margin. And even if I were to adjust for mix, which seems more recurring than nonrecurring, you still reach that level. It looks like the full year, like the middle scenario, if you're at 13% to 14% EBITDA margins, also seems to imply maybe like a low 30s gross margin. So I guess, A, is that the full year expectation embedded? B, I know there's still some potential timing impact in the first half. Maybe you could just articulate what some of those are in terms of things that have been good guys in your favor?

只是想了解一下 Matt 提出的一些觀點或問題。當我們具體考慮利潤率和毛利率時，我認為你對正常的描述已經足夠清楚了。今年上半年，你基本上是在指導 30 年代中期，低至 30 年代中期的毛利率。即使我要針對組合進行調整，這似乎比非經常性更多，你仍然會達到那個水平。看起來全年，就像中間情況一樣，如果你的 EBITDA 利潤率為 13% 到 14%，似乎也意味著毛利率可能低於 30 多歲。所以我想，A，是否嵌入了全年預期？ B，我知道上半年仍有一些潛在的時間影響。也許您可以從對您有利的好人的角度闡明其中的一些內容？

And then if I -- sorry for the multipart question, but C would be -- I think you said hey, we'll tell you more about base business as the year progresses. But if I take that delta between what you expect for gross margin this year and that [28%], should we assume that it's kind of like a few hundred million dollars right now that could be still a little bit temporary in your [opinion]?

然後，如果我 - 對於多部分問題感到抱歉，但 C 會 - 我想你說嘿，隨著時間的推移，我們會告訴你更多關於基礎業務的信息。但是，如果我將你對今年毛利率的預期與 [28%] 之間的差值計算出來，我們是否應該假設它現在有點像幾億美元，在你的 [意見] 中可能仍然有點暫時？

One question in 27 parts. I'll do my best, and you can tell me if I hit all the points.

一題27個部分。我盡力而為，你可以告訴我我是否能達到所有分數。

The first 1 is around margins. I mean, the difference between our guide, which is 28% plus on a normalized basis, and what we've talked about in our guide for Q2, for example, on mid-low 30s, low to mid-30s, yes, you're right, there was a disconnect there. We didn't provide explicit guidance around full year. I mean, obviously, those scenarios have some numbers embedded. But I think the message we're trying to send is we're in a very volatile environment still. We're seeing pretty significant step-downs in volumes.

第一個是邊距。我的意思是，我們的指南（在標準化基礎上增加 28%）與我們在第二季度指南中討論的內容之間的差異，例如，30 多歲中低，30 多歲中低，是的，你是的，那裡有一個斷開連接。我們沒有提供全年的明確指導。我的意思是，很明顯，這些場景中嵌入了一些數字。但我認為我們試圖傳達的信息是，我們仍然處於一個非常動蕩的環境中。我們看到銷量大幅下降。

And while we have a much better sense of how the market is going to react, we haven't fully digested it. So what we're saying in our numbers for this year is that we started exceptionally strong. That will, of course, take our full year average gross margins up above what we would consider to be normalized margins on an ongoing basis. But as we learn more and as we get better confidence, we'll continue to update that normalized number with our best understanding.

雖然我們對市場將如何反應有了更好的了解，但我們還沒有完全消化它。所以我們在今年的數字中說的是我們開局異常強勁。當然，這將使我們的全年平均毛利率持續高於我們認為的正常化利潤率。但隨著我們了解得更多，信心增強，我們將繼續根據我們的最佳理解更新該標準化數字。

In terms of what has happened in the near term, I think 1 of the things that we've been pleasantly surprised by in recent periods has been the strength of gross margins, the resiliency of gross margins. While a big piece of that is mix, I think it's important to point out that our gross margin performance this quarter was really primarily driven by that Multi-Family investment that we've made. That business, as you know, has longer lead times on their quote to delivery, which means there's a bit more exposure to commodities. And in this environment, that's a favorable thing, so there's some transitory benefit in there. We're certainly pleased with that business' performance overall and really happy to have it as part of the business. But those are the types of things we're accounting for when we're giving these normalized gross margin.

就近期發生的事情而言，我認為最近一段時間令我們驚喜的事情之一是毛利率的強勁，毛利率的彈性。雖然其中很大一部分是混合的，但我認為重要的是要指出我們本季度的毛利率表現實際上主要是由我們所做的多戶投資推動的。如您所知，該企業從報價到交貨的交貨時間更長，這意味著對商品的敞口更大。在這種環境下，這是一件有利的事情，所以會有一些暫時的好處。我們當然對該業務的整體表現感到滿意，並且非常高興將其作為業務的一部分。但這些是我們在給出這些標準化毛利率時要考慮的事情類型。

Did I hit all your points, Mike?

我是否達到了你的所有觀點，邁克？

Yes, pretty much.

是的，差不多。

I would just add, Mike, that yes, the multifamily tailwind will wane as we go further into the year for sure. And we also anticipate the products that anyone can provide will be increasingly competitive because supply chain issues have waned as well. But the stuff we're good at, the value-added stuff we're good at, is where it's a little stickier. So it's a combination of all of those.

邁克，我只想補充一點，是的，隨著我們進入今年，多戶家庭的順風肯定會減弱。我們還預計任何人都可以提供的產品將越來越具有競爭力，因為供應鏈問題也已經減弱。但是我們擅長的東西，我們擅長的增值東西，是它有點粘性的地方。所以它是所有這些的組合。

Okay. Yes, that's very helpful.

好的。是的，這很有幫助。

And then in terms of a follow-up, just on capital allocation. I mean, look, even if some of this is a little temporary in the first half, the underlying EBITDA number, it starts to come through consistent with your middle scenario. It's incredibly strong at the free cash flow conversion's been great. You've obviously been pretty aggressive buying back the stock, $1 billion effectively in just the last 4 months. The new authorization is $4 billion. It seems like you'll throw off considerably more free cash this year. So just thoughts on kind of why not a bigger -- why not a bigger authorization, just to have it out there? Maybe some puts and takes and any more explicit direction you could provide on what type of free cash conversion you'd expect for the full year?

然後就後續而言，只是關於資本配置。我的意思是，看，即使其中一些在上半年是暫時的，但潛在的 EBITDA 數字，它開始與您的中間情景一致。它在自由現金流轉換方面非常強大。很明顯，你回購股票的力度很大，僅在過去 4 個月就回購了 10 億美元。新的授權是 40 億美元。看起來你今年會花掉更多的自由現金。所以只是想為什麼不更大 - 為什麼不更大的授權，只是讓它在那裡？也許一些看跌期權和任何更明確的方向，你可以提供你期望全年的哪種類型的自由現金轉換？

Yes. And I think probably the first point is that our thinking around that free cash flow conversion is probably north of $1.5 billion now because of that call up. We said north of $1 billion in the past, so that's a significant increase in terms of what we're seeing.

是的。我認為第一點可能是，由於這次電話會議，我們對自由現金流轉換的思考現在可能超過 15 億美元。我們過去說過超過 10 億美元，所以就我們所看到的而言，這是一個顯著的增長。

As you know, Mike, some of that is really attributable to the slowdown in the business and the spinning off of some of the value on our working capital balance sheet. The reality is we are performing quite well, and we will continue to deploy capital in the strategy that we've outlined in the past. The Board has been very supportive whenever we need authorization because we think we have cash to put to work. They'll be there for us, and they're absolutely hand a glove with us on this strategy. So $1 billion seems fine for now, but we'll revisit if it makes sense.

正如你所知，邁克，其中一些真正歸因於業務放緩和我們營運資本資產負債表上的一些價值的剝離。事實上，我們的表現相當不錯，我們將繼續按照我們過去概述的戰略部署資本。每當我們需要授權時，董事會都非常支持，因為我們認為我們有足夠的資金投入工作。他們會在我們身邊，他們絕對會在這個策略上與我們合作。所以 10 億美元目前看來還不錯，但如果有意義，我們會重新考慮。

I mean, the only thing I'll point out is, right, we're done with sort of the windfall benefit of the very, very high commodities. So some of the volumes of share buyback that we've seen over the last couple of years because of those commodities are past them.

我的意思是，我唯一要指出的是，對，我們已經完成了非常非常高的商品的意外收益。因此，我們在過去幾年中看到的一些由於這些商品而導致的股票回購量已經過去了。

Okay. Appreciate it.

好的。欣賞它。

And we'll take our next question from Trey Grooms with Stephens.

我們將與 Stephens 一起接受 Trey Grooms 的下一個問題。

Yes. Congrats on the quarter. Peter, I think you said you expect to see increased competitive behavior or an increased competitive environment. How does the competitive behavior look in some of your maybe tougher demand markets versus some of the better markets? And are you starting to see that behavior kind of -- the competitiveness kind of creep up more in these more difficult markets? And is it more or less competitive maybe than what you've seen in prior slowdowns?

是的。祝賀這個季度。彼得，我想你說過你希望看到競爭行為增加或競爭環境增加。在您的一些可能更嚴格的需求市場與一些更好的市場中，競爭行為如何看待？你是否開始看到這種行為——在這些更困難的市場中，競爭力越來越多？與您在之前的經濟放緩中看到的相比，它的競爭力是否更強或更弱？

Trey, this is Dave. I think it's a market-by-market evaluation, Trey. I mean, again, it's still similar to what we've said previously. If you go from west to east, it's a little tougher out west than it is in the East. And where demand is a little tougher, we're seeing definitely more competition, again, around the products that anyone can do. Where we're still doing really well is with the value-added products and the stickiness with those customers around those products and being able to get value for those because they're more valuable to the customer.

特雷，這是戴夫。我認為這是一個逐個市場的評估，Trey。我的意思是，它仍然與我們之前所說的相似。如果你從西向東走，西部比東部要難一些。在需求更嚴格的地方，我們再次看到圍繞任何人都可以做的產品的競爭肯定會更多。我們仍然做得很好的地方是增值產品以及圍繞這些產品與這些客戶的粘性，以及能夠為這些產品獲得價值，因為它們對客戶更有價值。

Again, it's something that creates efficiencies for them, solves problems for them. They're willing to pay more in those scenarios because they see the value.

同樣，它可以為他們創造效率，為他們解決問題。他們願意在這些情況下支付更多費用，因為他們看到了價值。

But it's generally more west to east as far as competition is going right now around areas where anybody can provide the product and where the supply chain has started to normalize.

但就競爭目前圍繞任何人都可以提供產品和供應鏈已開始正常化的領域而言，它通常更西向東。

Okay. Got it. And then I guess as a follow-up, you called out the operational excellence and cost management initiatives that are helping to drive these gains in efficiency and productivity. Longer term, I see kind of obvious what it's doing for the near term and in a downside kind of environment. But longer term, how do you think about maybe the sustainability of some of these actions and things driving better margins as end markets improve?

好的。知道了。然後我想作為後續行動，您提出了卓越運營和成本管理計劃，這些計劃有助於推動這些效率和生產力的提高。從長遠來看，我看到它在近期和下行環境中所做的事情很明顯。但從長遠來看，隨著終端市場的改善，您如何看待其中一些行動的可持續性和推動更高利潤率的事情？

Well, I think the exciting thing for me, Trey, is where we have the most opportunity is where we're already pretty good. And that's in the manufacturing efficiencies and driving technology to create labor efficiencies in the manufacturing process. (inaudible) [use] that we have increased 22% [board] foot per labor hour, that's continuing to improve. And as we continue to invest in that segment of the business, there's still a pretty long runway there.

好吧，我認為對我來說，Trey 最令人興奮的事情是我們擁有最多機會的地方就是我們已經相當不錯的地方。這就是製造效率和驅動技術，以在製造過程中創造勞動效率。 （聽不清）[使用] 我們每個工時增加了 22% [板] 英尺，這還在繼續改善。隨著我們繼續投資於該業務領域，那裡還有很長的跑道。

As far as the distribution side of the business, the exciting thing there is as we continue to develop best practices and then we leverage it across 570 locations, that generally also is a meaningful number and we still think there's opportunity along those lines as well. And all of that supports our pledge that we're going to be the easiest to do business with, and it also is something that we can illustrate to our customers where we bring value to the party beyond just delivering product.

就業務的分銷方面而言，令人興奮的事情是我們繼續開發最佳實踐，然後我們在 570 個地點利用它，這通常也是一個有意義的數字，我們仍然認為這些方面也有機會。所有這一切都支持我們的承諾，即我們將成為最容易與之做生意的人，這也是我們可以向客戶說明的事情，我們為客戶帶來的價值不僅僅是交付產品。

The other thing I would add is when we talk about the productivity numbers, these are numbers that we've done the work around to analyze that this is a permanent change. We're not trying to take credit on productivity for something that sort of comes and goes as a freebie in the year that we're not going to be able repeat. These are changes to the business, these are operating changes, these are contractual changes that we feel good about in terms of having changed the business for the better over time, and we do think it's cumulative and sticky.

我要補充的另一件事是，當我們談論生產力數字時，這些數字是我們已經完成的工作來分析這是一個永久性的變化。我們不會試圖將生產力歸功於我們無法重複的那一年作為免費贈品來來去去的事情。這些是業務的變化，這些是運營的變化，這些是我們對隨著時間的推移更好地改變業務而感到滿意的合同變化，我們確實認為它是累積的和粘性的。

Perfect. I'll pass it on.

完美的。我會傳下去的。

And we'll take our next question from Collin Verron with Jefferies.

我們將與 Jefferies 一起接受 Collin Verron 的下一個問題。

Great quarter. My first question here is just you came in ahead of that 1Q guide, which you gave at the end of February. Can you just talk about what came in better than you were expecting? Was it underlying demand? Was it a specific product category? Or were you just able to hold on to commodity prices better? And since you gave that guidance late in the quarter, can you just give us a sense of how the year-over-year sales declines exited the quarter versus earlier in the quarter?

偉大的季度。我在這裡的第一個問題是，您在 2 月底給出的 1Q 指南之前就來了。你能談談比預期更好的結果嗎？是潛在需求嗎？它是特定的產品類別嗎？還是您只是能夠更好地控制大宗商品價格？既然你在本季度末給出了這個指導，你能告訴我們與本季度早些時候相比，本季度的銷售額同比下降情況如何嗎？

Sure. Yes. No, that's -- certainly, internally, that was a bit of a black eye for the organization in terms of the accuracy of our forecast. We knew we were doing well and we felt like the momentum was good, but what we thought was coming was worse than what we actually experienced. That competitive dynamic did not ramp up as quick as we expected. The dynamics in -- a lot of it was obviously that value add, that Multi-Family we've talked about. But even the commodity numbers on some of the longer-term contracts and just some of the way that we flowed through was better than we anticipated.

當然。是的。不，那是——當然，在內部，就我們預測的準確性而言，這對組織來說有點不利。我們知道我們做得很好，我們覺得勢頭很好，但我們認為即將到來的比我們實際經歷的更糟糕。這種競爭動態並沒有像我們預期的那樣迅速上升。其中的動態 - 很多顯然是增值，我們已經討論過的多家庭。但即使是一些長期合約的商品數據，以及我們流動的一些方式，也比我們預期的要好。

So certainly, the operating team has done a fantastic job of managing through all the local market dynamics to ensure that they're moving through product and getting a good compensation for what we've been seeing. But we were certainly surprised at how strong all that was.

因此，可以肯定的是，運營團隊在管理所有本地市場動態方面做得非常出色，以確保他們通過產品移動並獲得我們所看到的良好補償。但我們當然對這一切的強大程度感到驚訝。

It was an interesting quarter in terms of what we saw in the numbers. You won't hear us whine about the weather, but certainly weather on the West Coast, weather in Texas was disruptive in certain periods. That's been a push and a take that -- give and a take. That's definitely continuing to work through, so while we feel good about it, that's a piece. We also saw the impact of those interest rate changes, whether they be surprises up or down, were certainly influential on what our builders were reacting to, right, what our customers were reacting to in the market. But overall, I think we feel pretty good, as Dave was saying.

就我們在數字中看到的而言，這是一個有趣的季度。你不會聽到我們抱怨天氣，但肯定是西海岸的天氣，德克薩斯州的天氣在某些時期是破壞性的。這是一種推動和接受——給予和接受。這肯定會繼續努力，所以雖然我們對此感覺良好，但這是一件好事。我們還看到了這些利率變化的影響，無論是意外上漲還是意外下跌，肯定會影響我們的建築商對市場的反應，對，我們的客戶對市場的反應。但總的來說，我認為我們感覺很好，就像戴夫所說的那樣。

I would just add, early in the year with the volatility of expectation that was out pretty much with anybody that you talked, it was tough to put a stake in the ground and say we're great and we know we're going to be okay. Our guys did a fantastic job of preparing for the worst and hoping for the best, so we prepared for the downside scenario with our cost management. And then as we got clear sight to how the market of the quarter was going to play out, we managed against that baseline. And as you heard, even from our builder customers, we just reflected the same sentiment they did at that point in time. And as you're hearing them now, they're also saying it was better than they expected. So it's kind of a combination of all of that.

我只想補充一點，在今年年初，與您交談過的任何人幾乎都沒有預期的波動，很難堅持下去並說我們很棒，我們知道我們會成為好的。我們的員工在做最壞的打算和最好的希望方面做得非常出色，因此我們通過成本管理為下行場景做好了準備。然後，當我們清楚地看到本季度的市場將如何發揮作用時，我們針對該基線進行了管理。正如你所聽到的，即使是從我們的建築商客戶那裡，我們也反映了他們在那個時間點所做的同樣的情緒。正如你現在聽到的那樣，他們也說這比他們預期的要好。所以這是所有這些的結合。

That's helpful color. And then just on the Multi-Family business, you're obviously very strong in the quarter. Can you just talk about the size of the backlog that you guys have remaining in that business? And any guardrails on how to think about the business through the rest of the year here?

這是有用的顏色。然後就多家庭業務而言，您在本季度顯然非常強大。你能談談你們在該業務中剩餘的積壓量嗎？在今年餘下的時間裡，關於如何考慮業務的任何護欄？

Well, it's certainly a nice part about that business is we do have a bit more visibility to the backlog. Right now, it is substantial because that part of the market has been strong and somewhat surprising fashion has maintained its strength. I think there's absolutely a great profitability story in that world right now. But as Dave mentioned, that will continue to normalize over time as the [coke] prices and the market prices of commodities tightened. But yes, that's absolutely part of both what allowed us to do the M&A in that sector of the market, but what we're enjoying in terms of the results so far this year and through all of 2023.

好吧，這當然是關於該業務的一個很好的部分，因為我們確實對積壓工作有了更多的了解。現在，它是可觀的，因為這部分市場一直很強勁，而且有點令人驚訝的時尚保持了強勢。我認為現在那個世界絕對有一個偉大的盈利故事。但正如 Dave 提到的那樣，隨著 [焦炭] 價格和大宗商品市場價格的收緊，這將隨著時間的推移繼續正常化。但是，是的，這絕對是允許我們在該市場領域進行併購的部分原因，但就今年迄今為止和整個 2023 年的結果而言，我們正在享受的結果。

The only thing I'd add is we've got a really substantial backlog that gets us through 2023 and beyond, but that backlog is declining. In other words, we're completing jobs at a faster pace than we're filling the pipeline back up because that sector in general is facing the same capital cost issues that the Single-Family sector is facing, and there's just kind of a pause or a hesitancy in that group to try to figure out what the value proposition going forward needs to look like. We still believe, again, long-term housing demand wins, including in Multi-Family. But as there's a little bit of a recalibration of that capital cost, we are seeing jobs finish at a greater rate than jobs being entered into a pipeline out in 12 months and beyond.

我唯一要補充的是，我們有大量積壓工作可以讓我們度過 2023 年及以後，但積壓工作正在減少。換句話說，我們完成工作的速度比我們補充管道的速度更快，因為該行業總體上面臨著與單戶住宅行業相同的資本成本問題，只是有點停頓或該小組猶豫不決，試圖弄清楚未來的價值主張需要是什麼樣子。我們仍然相信，包括多戶型在內的長期住房需求將再次獲勝。但是，由於對資本成本進行了一些重新校準，我們看到在 12 個月及以後的時間裡，工作完成的速度要快於進入管道的工作。

Great. And good luck in the second quarter.

偉大的。祝第二季度好運。

And we'll take our next question from Stanley Elliott with Stifel.

我們將與 Stifel 一起接受 Stanley Elliott 的下一個問題。

Thank you for the question, and nice start to the year. Dave, piggybacking on the commentary on the Multi-Family side. When we think about the value-added part of the business, does it break down pretty consistently between your Single-Family, Multi-Family buckets? And then how quickly is it or how difficult is it rather for you all to switch kind of focus in between the individual markets if we do see kind of a Multi-Family decline in '24 and beyond?

謝謝你的提問，祝你今年有個美好的開始。戴夫 (Dave) 借用多戶家庭方面的評論。當我們考慮業務的增值部分時，它是否在您的單戶、多戶桶之間相當一致地分解？那麼，如果我們確實看到 24 世紀及以後的多戶住宅出現某種程度的下滑，那麼你們所有人在各個市場之間轉移注意力的速度有多快或有多困難？

Stanley, can you repeat the first question? You broke up.

斯坦利，你能重複第一個問題嗎？你分手了。

Yes. Sorry about that. So in terms of kind of the Multi-Family -- or the value-add piece as a whole, is there a way to differentiate or delineate between how much of your value add's going into Multi-Family now versus Single-Family? Maybe it's just consistent with the overall portfolio, but I was looking for maybe a little direction there.

是的。對於那個很抱歉。因此，就多戶家庭的種類或整個增值部分而言，是否有辦法區分或描述現在有多少增值進入多戶家庭與單戶家庭？也許它只是與整體投資組合一致，但我一直在尋找可能的方向。

And then also in terms of the ability to pivot your products necessarily between Multi-Family or Single-Family more on some of the manufactured side, depending upon what's going to happen with those end markets.

然後，在某些製造方面，還需要在多家庭或單家庭之間更多地調整產品的能力，這取決於這些終端市場將會發生什麼。

Yes. Thanks for that question. Within the Multi-Family segment for us, it's primarily value-add. We don't do a lot of non-value-add with our Multi-Family customers, and Truss is the overwhelming majority of the value add. So it will always have a higher percent of Multi-Family sales as being value add. Now in the context of the overall business, it's still a fairly -- it's 13% of our total business. So even in that context, it doesn't move the needle very much either way versus the Single-Family.

是的。謝謝你的問題。在我們的多家庭細分市場中，它主要是增值。我們不會為我們的多戶家庭客戶做很多非增值業務，而 Truss 是絕大多數增值業務。因此，作為附加值，多戶型銷售的百分比始終較高。現在，在整體業務的背景下，它仍然相當——占我們總業務的 13%。因此，即使在這種情況下，與單一家庭相比，它也不會以任何一種方式移動針頭。

Now what I will tell you is our guys have done a great job where we have Multi-Family plants at capacity moving business to Single-Family plants that are under capacity, and that's the value of our platform and the ability to have -- to manage the effectiveness of where we can build those Trusses in the most efficient way by having the availability of those Single-Family plants. So there is a coordinated effort to build those Trusses where we can get the most efficient cost and it has to be within the radius of the job that we're trying to supply, but there's a lot of coordination that goes on there and a significant integration effort to make that happen.

現在我要告訴你的是，我們的人做得很好，我們擁有產能過剩的多戶工廠，將業務轉移到產能不足的單戶工廠，這就是我們平台的價值和能力——通過獲得這些單戶工廠的可用性，管理我們可以以最有效的方式建造這些桁架的地方的有效性。因此，我們需要協調努力來構建那些我們可以獲得最有效成本的桁架，並且它必須在我們試圖提供的工作範圍內，但是那裡有很多協調，而且很重要整合努力來實現這一點。

Perfect. Actually, that's great color. And then in terms of kind of the outlook, I mean, the free cash flow continues to be quite good. Even with M&A, you guys are going to be below [0.5 turn] of leverage. Peter, how you guys about managing the capital structure? I mean, you mentioned repurchases, but also what is your comfort level in terms of leverage right now given that we are in kind of a still somewhat uncertain market?

完美的。事實上，那是很棒的顏色。然後就前景而言，我的意思是，自由現金流仍然非常好。即使進行併購，你們的槓桿率也會低於 [0.5 轉]。彼得，你們如何管理資本結構？我的意思是，你提到了回購，但考慮到我們處於一個仍然有些不確定的市場，你現在在槓桿方面的舒適度是多少？

Yes. I think as a general guideline, we still like 1x to 2x base business as a guideline that is helpful in terms of thinking about how to minimize our risk but still take on an appropriate amount of it. It's a metric that if you think about base business in the last year, we'd say we have room, but we're certainly in the range rather than if you just look at our trailing 12 actuals, it looks like we're a little bit under leveraged in that regard. So as this business normalizes as we get a better visibility into 2023 full year, we'll go ahead and update that base business, give you an updated thought process around the leverage ratio. But at this point, we feel pretty good about our borrowing, both the cost and the tenure, and we'll continue to watch it.

是的。我認為作為一般準則，我們仍然喜歡將 1 倍到 2 倍的基礎業務作為準則，這有助於思考如何將風險降至最低但仍承擔適當數量的風險。這是一個衡量標準，如果你考慮去年的基礎業務，我們會說我們有空間，但我們肯定在這個範圍內，而不是如果你只看我們尾隨的 12 個實際值，看起來我們是在這方面槓桿不足。因此，隨著我們更好地了解 2023 年全年，該業務正常化，我們將繼續更新該基礎業務，為您提供有關槓桿率的最新思維過程。但在這一點上，我們對我們的借貸感覺很好，包括成本和期限，我們將繼續關注它。

And we'll take our next question from Jay McCanless with Wedbush.

我們將與 Wedbush 一起接受 Jay McCanless 的下一個問題。

So just -- I know that lumber, the actual commodity cost, is becoming less relevant for your business. But it's been surprising how subdued the lumber market and lumber prices have been this year, especially in light of some of the curtailments that we're starting to hear about. I guess, maybe what are you hearing from your suppliers there? And how are you feeling about the direction of lumber prices over the next 2 to 3 months?

所以只是 - 我知道木材，實際商品成本，與您的業務越來越不相關。但令人驚訝的是，今年的木材市場和木材價格如此低迷，尤其是考慮到我們開始聽說的一些削減措施。我想，也許您從那裡的供應商那裡聽到了什麼？您如何看待未來 2 至 3 個月的木材價格走勢？

Yes. That's a tough question to answer. I think we continue to manage it on a flow-through basis, ensuring that we get the right margins for us. It's been a little bit of back and forth. I hear you. There have been some indications that taking capacity out, might be helpful to put a floor under it. There's been some other memories particularly on the [LSB] side about adding capacity. I think it's kind of range bound right now, but it's tough to say. It's been such a surprise in commodity over the last few years. I certainly don't feel comfortable predicting, but we're ready.

是的。這是一個很難回答的問題。我認為我們將繼續在流通的基礎上對其進行管理，以確保我們獲得合適的利潤率。這有點來回。我聽到你了。有一些跡象表明，減少容量可能有助於為其提供支持。關於增加容量，還有一些其他記憶，特別是在 [LSB] 方面。我認為現在有點受限，但很難說。在過去的幾年裡，大宗商品是如此令人驚訝。我當然不願意預測，但我們已經準備好了。

Okay. And the other question, I think -- and Dave, you may have already addressed this, but just wondering with some of the financial pressures that supposedly are coming from banks tightening credit, et cetera? Have you seen your competition on the distribution side getting more aggressive on price? Or is this lift in sentiment from the builders in March and April been able to diffuse some of that or most of that?

好的。另一個問題，我認為 - 戴夫，你可能已經解決了這個問題，但只是想知道據稱來自銀行收緊信貸等的一些財務壓力？您是否看到您在分銷方面的競爭在價格上變得更加激進？還是 3 月和 4 月建築商的這種情緒提升能夠分散其中的一部分或大部分？

I think what you're saying is -- or asking about is the bank implications on demand, and as a result, what does that do with our supply chain partners.

我認為你在說什麼——或者問的是銀行對需求的影響，因此，這對我們的供應鏈合作夥伴有什麼影響。

I would tell you there are products that there is a little of additional capacity versus demand. But in general, our supply chain partners at this point in time have worked through where they had excess capacity in the first quarter and kept things at a normalized environment. So they're still experiencing inflationary pressures in their business as well, specifically around labor, and they've been a little reluctant to get too aggressive unless it was to balance the capacity versus on hand situation, which pretty much worked itself out in the first quarter.

我會告訴你，有些產品相對於需求有一些額外的容量。但總的來說，我們的供應鏈合作夥伴目前已經解決了第一季度產能過剩的問題，並保持了正常的環境。因此，他們的業務仍然面臨通脹壓力，特別是在勞動力方面，他們有點不願意過於激進，除非是為了平衡產能與手頭情況，這在第一季度。

So I think we're in that -- the word of the day for the industry is stabilization. I think we're all in kind of a stable market and trying to be nimble and be able to respond either on the upside or the downside as necessary, and I think that's kind of where we are today.

所以我認為我們正處在這個位置——這個行業的當今關鍵詞是穩定。我認為我們都處於一個穩定的市場中，並試圖變得靈活，並能夠根據需要對上行或下行做出反應，我認為這就是我們今天所處的位置。

And we'll take our next question from Steven Ramsey with Thompson Research Group.

我們將從湯普森研究小組的 Steven Ramsey 那裡回答我們的下一個問題。

Maybe just to clarify on the first quarter, better than expected start to the year. Was that in all segments or did 1 segment drive that over another? And maybe you can dovetail into the green shoots that you saw in April, maybe elaborate how it's connected to the better start?

也許只是為了澄清第一季度，今年開局好於預期。是在所有細分市場中還是有一個細分市場將其推向了另一個細分市場？也許您可以與您在 4 月份看到的綠芽相吻合，也許可以詳細說明它與更好的開始有何联系？

Well, a fair question. I would say, overall, we saw more resiliency in the market than we had forecasted. I think that's fair to say across the board. We saw the most resiliency in the -- geographically in the East, I would say, product-wise in value-add. And in terms of the timing on that, I don't think there's anything strong indicating there is a time horizon that caused the results to be different, meaning each market is digesting what their demand looks like, each market is resetting and placing orders. But overall, I think it's been more orderly and more disciplined in terms of reacting to the step down in sales than we had originally forecast.

好吧，一個公平的問題。我想說，總體而言，我們看到市場的彈性比我們預期的要大。我認為這是公平的。我們看到了最具彈性的——地理上在東方，我想說，在增值產品方面。就時間而言，我認為沒有任何強烈跡象表明存在導致結果不同的時間範圍，這意味著每個市場都在消化他們的需求，每個市場都在重置和下訂單。但總的來說，我認為它在對銷售額下降的反應方面比我們最初預測的更加有序和更有紀律。

As far as the green shoots comment, I think what we're seeing from our customers is they're cautiously optimistic, again, that things will be stable. And there are areas where things are showing the ability for demand to be resilient when mortgage rates are at a level where buyers enter into the market again. Areas of the country that we've seen where that's a little better or where there's actual pockets of strength with real job growth versus what was somewhat of a boom during COVID that's kind of now receded.

至於綠芽評論，我認為我們從客戶那裡看到的是他們持謹慎樂觀的態度，再次，事情會穩定。在某些領域，當抵押貸款利率處於買家再次進入市場的水平時，需求將顯示出彈性。我們已經看到，與 COVID 期間的繁榮相比，現在有所消退的情況略有好轉，或者在實際就業增長方面存在實際實力的地區。

So again, mainly moving west to east is where we see it improving. And West is becoming -- starting to show signs of at least levelly now.

同樣，主要是從西向東移動是我們看到它有所改善的地方。韋斯特正在成為——至少現在開始顯示出水平的跡象。

Okay. That's helpful. And then thinking longer term, the secular penetration of value-added products in Multi-Family and Single-Family, how do you see that shaping up over the long term? You said Multi-Family is mostly value-added products. So is there less of a penetration opportunity there or adding more value-add products into that portfolio for those customers?

好的。這很有幫助。然後從長遠來看，增值產品在多戶型和單戶型中的長期滲透，您如何看待這種長期趨勢？你說Multi-Family多是增值產品。那麼，那裡的滲透機會是否更少，或者為這些客戶向該產品組合中添加更多增值產品？

Yes. I mean overall, we're very excited about what value add means in the long term. We've certainly moved the needle quite a bit in terms of our mix being a 56% value add this quarter, but we're not done. There's more opportunity that you got geographically. There are more opportunities to have, the portfolio of products that we have in our offering in markets where it's not there yet. And I think where we ultimately expect to get to is if you look at the digital world, the ability to do more and more of that value-added work (inaudible), right? We're looking for ways to grow our ability to serve our customers, make them more efficient, help their total cost of build go down.

是的。我的意思是總的來說，我們對增值的長期意義感到非常興奮。就本季度我們的組合增加 56% 的價值而言，我們當然已經取得了很大進展，但我們還沒有完成。你在地理上有更多的機會。有更多的機會，我們在尚不存在的市場中提供的產品組合。而且我認為，如果你看看數字世界，我們最終期望達到的目標是能夠做越來越多的增值工作（聽不清），對嗎？我們正在尋找方法來提高我們為客戶服務的能力，提高他們的效率，幫助他們降低總建設成本。

So we're certainly excited about it. We think there's a lot of opportunity there still. There's not a lot of great numbers in terms of share, so it's a little hard to talk about it that way, but we're certainly believers that there's much more to them.

所以我們當然對此感到興奮。我們認為那裡仍然有很多機會。就份額而言並沒有太多的數字，所以以這種方式談論它有點困難，但我們當然相信它們還有更多。

And the only other thing I'd add specifically around truss is the premise around adding Multi-Family truss was end market diversification from Single-Family, and that only works when you have the coordination between the Single-Family plants and the Multi-Family plants to be able to share work. And what we're doing really well is figuring that out and integrating that, and it accomplishes our objective to make sure when Multi-Family's hot, we're able to get there. When Single-Family's hot, we're able to hit there.

我要特別圍繞桁架添加的唯一另一件事是添加多戶桁架的前提是終端市場從單一家庭多樣化，並且只有當您在單一家庭植物和多家庭植物之間進行協調時才有效植物能夠分擔工作。我們做得很好的是弄清楚並整合它，它實現了我們的目標，即確保當 Multi-Family 很熱時，我們能夠實現目標。當單身家庭很熱的時候，我們就可以打那裡。

Excellent.

出色的。

And we'll take our next question from Joe Ahlersmeyer with Deutsche Bank.

我們將從德意志銀行的 Joe Ahlersmeyer 那裡回答下一個問題。

Congrats on the impressive results.

祝賀令人印象深刻的結果。

Thanks, Joe.

謝謝，喬。

Looking at your windows, doors and millwork performance in the quarter, essentially flat year-over-year. Could you just maybe unpack that a little more with respect to what drove that? Are we seeing perhaps stronger pricing in doors? Is this mainly the Multi-Family performance? Or are we also perhaps seeing a manifestation of the Single-Family completions still positive on a quarterly basis here?

查看本季度的門窗和木製品性能，與去年同期相比基本持平。你能不能就驅動它的原因再多解釋一下？我們是否看到門上的價格可能更高？這主要是Multi-Family的表現嗎？或者我們是否也可能在這裡看到單戶住宅完工的表現在每個季度仍然是積極的？

Yes. I think it's a little bit of a couple of those things. The completion certainly remains strong on those back of the building process products. Windows, doors and millwork, a good example. I think there was quite a bit of disruption in that part of the market as well which slowed the ability to put product on the ground when needed, so that's another big component. But we've also invested, so there's increased ability to serve as well.

是的。我認為這是其中的一些事情。在建築過程產品的支持下，完工肯定仍然很強勁。窗戶、門和木製品就是一個很好的例子。我認為這部分市場也出現了相當多的中斷，這減緩了在需要時將產品投放市場的能力，因此這是另一個重要組成部分。但我們也進行了投資，因此服務能力也有所增強。

Great. And sitting here this time next year, if we're looking at this bridge on Page 10, is it likely that we see now the commodity deflation bucket fairly de minimis on a year-over-year basis? And relatedly, that same bucket in the second quarter coming up here, your expectation for that, I assume, is a significant increase in the headwind versus 1Q. So maybe just some context around how that shapes up next quarter and this time next year.

偉大的。明年這個時候坐在這裡，如果我們查看第 10 頁上的這座橋，我們現在是否有可能看到商品通貨緊縮桶與去年同期相比相當低？與此相關的是，第二季度的同樣情況，我認為你對此的預期是逆風與第一季度相比顯著增加。因此，也許只是關於下個季度和明年這個時候如何形成的一些背景信息。

Yes. No, you're right, right? We should have digested the bulk of all of this commodity noise, commodity volatility by next year. Q2 would be the biggest comp in terms of peak pricing hit in Q2 of last year. So it may drain a little bit into Q3, but Q2 is the biggest impact on a year-over-year basis. That's right.

是的。不，你是對的，對吧？到明年，我們應該已經消化了所有這些商品噪音和商品波動的大部分。就去年第二季度的峰值定價而言，第二季度將是最大的競爭。因此，它可能會在第三季度有所減少，但第二季度的同比影響最大。這是正確的。

Could it be as much as, I mean, $2 billion to $2.5 billion of a headwind on sales? Or is that too aggressive?

我的意思是，它是否會帶來 20 億至 25 億美元的銷售逆風？還是這太激進了？

We can get back to you on that one. I don't actually have that narrow guide off the top of my head.

我們可以在那個問題上回复你。我實際上並沒有把那個狹窄的指南從我的頭頂上移開。

Okay. No worries.

好的。不用擔心。

(Operator Instructions) We'll take our next question from David Manthey with Baird.

（操作員說明）我們將與 Baird 一起接受 David Manthey 的下一個問題。

Yes. Thank you. When you talk about productivity savings here, I'm just definitionally wondering, is that mostly or entirely in SG&A? And for example, the $34 million of productivity this quarter, is that separate from your higher gross margin outlook? Or is there some overlap between the 2?

是的。謝謝。當你在這裡談論生產力節省時，我只是想知道，這主要還是全部在 SG&A 中？例如，本季度 3400 萬美元的生產率是否與您更高的毛利率預期分開？還是兩者之間有一些重疊？

Yes. The productivity savings actually is also a component of margin where it relates to manufacturing. Where we've gained manufacturing efficiencies, it actually is a positive contributor to our margin as well. But so it's both, when we get it in the SG&A categories in of the COGS categories through manufacturing efficiencies.

是的。生產力節省實際上也是與製造相關的利潤的一個組成部分。在我們獲得製造效率的地方，它實際上也對我們的利潤率做出了積極貢獻。但是，當我們通過製造效率將其納入 COGS 類別中的 SG&A 類別時，兩者都是如此。

And I assume that varies from quarter-to-quarter, so there's no base rule we should be thinking about?

而且我假設每個季度都不同，所以沒有我們應該考慮的基本規則？

That is correct.

那是對的。

Okay.

好的。

And we'll take our next question from Adam Baumgarten with Zelman.

我們將與 Zelman 一起接受 Adam Baumgarten 的下一個問題。

Can you walk us through what you're seeing on pricing for the non-commodity part of the business?

您能否向我們介紹一下您所看到的業務非商品部分的定價情況？

Yes. I mean, I think commodity pricing has been the headline that we've all talked about, but there's certainly been a lot of work done on the pricing in the non-commodity side. It's an area that, I think, really lends itself to the process and the discipline that we've implemented over the last 5 years or so. So certainly, a nice offset to the volume headwinds from the from the pricing side. Obviously, not all of it, but certainly strong healthy pricing in that space. But chunk of it is absolutely attributable to the multifamily mix change and the profitability of that business.

是的。我的意思是，我認為商品定價一直是我們都在談論的頭條新聞，但在非商品方面的定價方面肯定已經做了很多工作。我認為，這是一個真正適合我們在過去 5 年左右實施的流程和紀律的領域。因此，可以肯定的是，從定價方面可以很好地抵消銷量的不利因素。顯然，不是全部，但肯定是該領域強勁健康的定價。但其中很大一部分絕對歸因於多戶家庭組合的變化和該業務的盈利能力。

And we'll take our next question from Ketan Mamtora with BMO Capital Markets.

我們將接受 BMO Capital Markets 的 Ketan Mamtora 的下一個問題。

Peter, can you just clarify how you think about free cash flow for 2023? I thought I heard $1.5 billion earlier in the comments.

彼得，你能澄清一下你對 2023 年自由現金流的看法嗎？我以為我早些時候在評論中聽到了 15 億美元。

Yes. Free cash flow continues to be a bright spot for us. We actually generated a substantial amount in Q1, and you know that's a bit unusual for us. Some of that has to do with the resizing of the business on a year-over-year comparison basis. But we are still performing well, so quite profitable. So we're comfortable saying that we expect cash flows to be kind of north of that $1.5 billion range for 2023 based on sort of the most likely or middle of the path scenario that we provided.

是的。自由現金流仍然是我們的亮點。我們實際上在第一季度產生了大量資金，你知道這對我們來說有點不尋常。其中一些與在同比比較的基礎上調整業務規模有關。但我們仍然表現良好，因此非常有利可圖。因此，我們很高興地說，根據我們提供的最有可能或中間的路徑情景，我們預計 2023 年的現金流量將在 15 億美元的範圍以北。

You said north of $1.5% billion, Peter, just to clarify?

你說超過 1.5% 十億美元，彼得，只是為了澄清一下？

That's correct.

這是正確的。

And it appears that we have no further questions at this time. That concludes today's teleconference. Thank you for your participation. You may now disconnect.

現在看來我們沒有其他問題了。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。