Bluelinx Holdings Inc (BXC) 2022 Q4 法說會逐字稿

Greetings, and welcome to BlueLinx Holdings Fourth Quarter of Full Year 2022 Results Conference Call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Alexandra, Manager of Investor Relations.

您好，歡迎來到 BlueLinx Holdings 2022 年全年第四季度業績電話會議。 （操作員說明）提醒一下，正在錄製此會議。現在我很高興向您介紹投資者關係經理亞歷山德拉。

Thank you, operator. Good morning, everyone, and welcome to the BlueLinx Holdings Fourth Quarter and Full Year 2022 Earnings Call. Presenting today are Dwight Gibson, President and CEO of BlueLinx, and Kelly Janzen, our Chief Financial Officer. Our fourth quarter and full year news release and Form 10-K were issued yesterday after the close of the market, along with our webcast presentation. These items are available in the Investors section of our website, bluelinxco.com. We encourage you to follow along with the detailed information on the slides during our webcast.

謝謝你，運營商。大家早上好，歡迎來到 BlueLinx Holdings 第四季度和 2022 年全年收益電話會議。今天出席的有 BlueLinx 總裁兼首席執行官 Dwight Gibson 和我們的首席財務官 Kelly Janzen。我們的第四季度和全年新聞稿和 10-K 表格於昨天收市後發布，同時發布了我們的網絡廣播演示文稿。這些項目可在我們網站 bluelinxco.com 的投資者部分找到。我們鼓勵您在我們的網絡廣播期間關注幻燈片上的詳細信息。

Today's discussion contains forward-looking statements. Actual results may differ significantly from those forward-looking statements due to various risks and uncertainties, including the risks described in our most recent SEC filings. Today's presentation includes certain non-GAAP and adjusted financial measures that we believe provide helpful context for investors evaluating our business. Reconciliations to the closest GAAP financial measure can be found in the appendix of our presentation.

今天的討論包含前瞻性陳述。由於各種風險和不確定性，包括我們最近提交給美國證券交易委員會的文件中描述的風險，實際結果可能與這些前瞻性陳述有很大差異。今天的介紹包括某些非 GAAP 和調整後的財務指標，我們認為這些指標為投資者評估我們的業務提供了有用的背景。與最接近的 GAAP 財務指標的調節可以在我們的演示文稿的附錄中找到。

At the conclusion of our prepared remarks, we will open the line for questions. With that, I'll turn the call over to Dwight.

在我們準備好的發言結束時，我們將打開提問熱線。有了這個，我會把電話轉給德懷特。

Thanks, Alexandra, and good morning, everyone. Thank you for joining us on the call today. Over the past year, our team has built BlueLinx into a stronger, more profitable and more resilient business. We have transformed our balance sheet with leverage under 1x and total liquidity of $645 million. Despite the softer market environment, we are positioned to continue to execute our strategy, which includes growing our higher-value specialty product sales, driving operational excellence across our business, fortifying our balance sheet while investing in profitable growth and building a strong team that is committed to driving a high-performance culture and generating long-term value. In 2022, favorable market conditions combined with these strategic priorities contributed to us achieving one of the best annual financial performances in our history in terms of net sales, earnings per share, adjusted EBITDA and operating cash flow, even as market conditions began to decline late into the year.

謝謝，亞歷山德拉，大家早上好。感謝您今天加入我們的電話會議。在過去的一年裡，我們的團隊將 BlueLinx 打造成一個更強大、利潤更高、更具彈性的企業。我們以低於 1 倍的槓桿率和 6.45 億美元的總流動性改變了我們的資產負債表。儘管市場環境疲軟，但我們仍準備繼續執行我們的戰略，其中包括增加我們更高價值的專業產品銷售，推動我們業務的卓越運營，加強我們的資產負債表，同時投資於盈利增長和建立一支強大的團隊致力於推動高績效文化並創造長期價值。 2022 年，有利的市場條件加上這些戰略重點使我們在淨銷售額、每股收益、調整後的 EBITDA 和經營現金流方面實現了歷史上最好的年度財務業績之一，即使市場條件後期開始下滑進入年。

For the fiscal year 2022, we delivered $4.5 billion in sales and $296 million in net income. This translated into adjusted EBITDA of $478 million, a new record and more than $32 in diluted earnings per share on an adjusted basis. We also generated a record $400 million in operating cash flows, of which approximately $170 million was allocated during the year to acquire Vandermeer Forest Products for $67 million, make capital investments that improve the effectiveness of our distribution facilities and fleet and acquire 9% of our outstanding shares under our share repurchase program. For the fourth quarter of 2022, we generated net sales of $848 million and $32 million of net income. This resulted in $3.97 per diluted share on an adjusted basis and $63 million of adjusted EBITDA. We also generated $154 million of operating cash flow, a significant increase to $136 million over Q4 of last year.

在 2022 財年，我們實現了 45 億美元的銷售額和 2.96 億美元的淨收入。這轉化為調整後的 EBITDA 為 4.78 億美元，創下新紀錄，調整後每股攤薄收益超過 32 美元。我們還產生了創紀錄的 4 億美元運營現金流，其中約 1.7 億美元在年內分配用於以 6700 萬美元收購 Vandermeer Forest Products，進行資本投資以提高我們的分銷設施和車隊的效率，並收購我們 9% 的產品我們的股票回購計劃下的流通股。 2022 年第四季度，我們實現了 8.48 億美元的淨銷售額和 3200 萬美元的淨收入。這導致調整後的每股攤薄收益為 3.97 美元，調整後的 EBITDA 為 6300 萬美元。我們還產生了 1.54 億美元的經營現金流，比去年第四季度大幅增加到 1.36 億美元。

Our fourth quarter results were solid despite lower sales volumes, resulting from a meaningful decrease in overall market demand given the macroeconomic environment. Even with the softer demand, we were able to deliver strong margin performance in both specialty and structural products by staying disciplined with our pricing approach. We also continue to emphasize efficiency across our distribution facilities and manage our overall operating costs. We focus on our working capital management, which included a disciplined approach to our overall inventory on hand. These actions allowed us to deliver strong profitability and robust operating cash flows for the quarter. In January, earnings were in line with our expectations. We experienced softness on the top line, and we continue to focus on margin maximization.

儘管銷量下降，但由於宏觀經濟環境下整體市場需求顯著下降，我們第四季度的業績依然穩健。即使需求疲軟，我們也能夠通過嚴格遵守我們的定價方法，在特種產品和結構產品方面實現強勁的利潤率表現。我們還繼續強調我們分銷設施的效率並管理我們的整體運營成本。我們專注於我們的營運資金管理，其中包括對我們手頭的整體庫存採取嚴格的方法。這些行動使我們能夠在本季度實現強勁的盈利能力和穩健的經營現金流。一月份，收益符合我們的預期。我們經歷了頂線的疲軟，我們繼續專注於利潤最大化。

Now I'll share a perspective on our market. Our end markets of repair and remodel, residential new home construction and to a lesser extent, commercial markets all experienced significant growth over the past 3 years as demand vastly exceeded supply. Over the past year, however, mortgage rates have more than doubled, impacting both single-family housing and repair and remodel demand as consumers adjust to the higher rates. Home prices have also appreciated meaningfully contributing to significantly reduced home affordability for most buyers. Inflation has eased some, but remains elevated. This lack of housing affordability and general economic uncertainty has led to a significant reduction in new housing starts. In January, single-family housing starts declined 27% year-over-year, with housing starts down single digits sequentially from December. As we look at 2023, we believe single-family housing starts will continue to be in double-digit decline as compared to 2022 as the macroeconomic environment continues to impact the industry and until there is more certainty around mortgage rates.

現在我將分享對我們市場的看法。由於需求大大超過供應，我們的維修和改造終端市場、住宅新房建設以及較小程度上的商業市場在過去 3 年都經歷了顯著增長。然而，在過去的一年裡，抵押貸款利率翻了一番以上，隨著消費者適應更高的利率，影響了單戶住宅以及維修和改造需求。房價的升值也顯著降低了大多數購房者的購房能力。通貨膨脹有所緩解，但仍處於高位。缺乏住房負擔能力和普遍的經濟不確定性導致新房開工量大幅減少。 1 月份，獨棟房屋開工率同比下降 27%，房屋開工率自 12 月以來連續下降個位數。展望 2023 年，我們認為與 2022 年相比，單戶住宅開工率將繼續呈兩位數下降，因為宏觀經濟環境繼續影響該行業，直到抵押貸款利率變得更加確定為止。

We are more optimistic regarding repair and remodel and believe recent housing turnover, aged housing stock and high levels of homeowners' equity will support better performance for the repair and remodel market during 2023. Many homeowners are also locked in with a mortgage rate below 5% and may not have the desire to move and trade up for a house with a higher rate. Instead, they will likely seek to customize, update and upgrade their existing homes. We expect repair and remodel activity to remain relatively flat for 2023.

我們對維修和改造更加樂觀，相信近期的房屋成交量、老舊房屋存量和高水平的房主資產將支持維修和改造市場在 2023 年有更好的表現。許多房主也被鎖定在 5% 以下的抵押貸款利率並且可能沒有搬家和交易更高利率的房子的願望。相反，他們可能會尋求定制、更新和升級他們現有的房屋。我們預計維修和改造活動在 2023 年將保持相對平穩。

Despite these market dynamics, we believe that the fundamental undersupply of homes and supportive demographic shifts, along with aged housing stock, necessary repair activity and high levels of home equity continue to be positive indicators for the housing industry over the medium and longer term. During periods of market softness, we believe it is important to balance the short-term needs of the business with our long-term strategic priorities. We will continue to prioritize a fortified balance sheet, managing our cost structure appropriately to match the levels of demand and maintain rigor around our pricing discipline. We will continue to work closely with our customers and suppliers to navigate the economic cycle.

儘管存在這些市場動態，但我們認為，住房的根本供應不足和有利的人口結構變化，以及老化的住房存量、必要的維修活動和高水平的房屋淨值，在中長期內繼續是房地產行業的積極指標。在市場疲軟時期，我們認為平衡業務的短期需求與我們的長期戰略重點非常重要。我們將繼續優先考慮強化資產負債表，適當管理我們的成本結構以匹配需求水平，並保持我們定價紀律的嚴格性。我們將繼續與我們的客戶和供應商密切合作，以駕馭經濟周期。

Our long-term strategic priorities remain the same. We will continue to focus on growing our specialty product sales. We will continue to optimize our operations to improve efficiency. We will further expand our relationships with strategic suppliers and the key customers, and we will continue to create value for shareholders through disciplined capital allocation. The last of these items, disciplined capital allocation, is central to our value creation strategy. Today, we have significant cash and ample liquidity to not only weather a downturn, but also to pursue both organic and inorganic growth investments as opportunities arise. We view the current softer macroeconomic environment as an opportunity for acquisitions. We will remain prudent in our approach, ensuring we secure quality businesses at a fair valuation.

我們的長期戰略重點保持不變。我們將繼續專注於增加我們的特色產品銷售。我們將繼續優化運營以提高效率。我們將進一步擴大與戰略供應商和主要客戶的關係，我們將繼續通過嚴格的資本配置為股東創造價值。這些項目中的最後一項，即有紀律的資本分配，是我們價值創造戰略的核心。今天，我們擁有大量現金和充足的流動性，不僅可以抵禦經濟低迷，還可以在機會出現時進行有機和無機增長投資。我們將當前疲軟的宏觀經濟環境視為收購機會。我們將在我們的方法中保持謹慎，確保我們以公平的估值獲得優質業務。

In summary, we have delivered strong financial results in a challenging environment and made progress on our long-term goals. Our strategy, along with our strong balance sheet and a disciplined approach to capital allocation positions us well to navigate the downturn and to take advantage of the market when it improves. I'm proud of the entire BlueLinx team for their efforts and contributions to deliver an excellent 2022 results.

總而言之，我們在充滿挑戰的環境中取得了強勁的財務業績，並在實現長期目標方面取得了進展。我們的戰略、強勁的資產負債表和嚴格的資本配置方法使我們能夠很好地度過低迷時期，並在市場好轉時利用市場。我為整個 BlueLinx 團隊為取得 2022 年出色的成績所做的努力和貢獻感到自豪。

That concludes my opening remarks. I'll turn the call over to Kelly for a more detailed discussion of our financial results and capital structure. Following that, I'll provide closing remarks before we take your questions.

我的開場白到此結束。我會將電話轉給凱利，以便更詳細地討論我們的財務業績和資本結構。之後，我將在回答您的問題之前發表結束語。

Thanks, Dwight, and good morning, everyone. I'll start with the full year results and then turn to the fourth quarter performance.

謝謝，德懷特，大家早上好。我將從全年業績開始，然後轉向第四季度業績。

As Dwight mentioned, 2022 was indeed one of the best financial performances in our company's history. For the full year, net sales were $4.5 billion, up 4% compared with the prior year. Gross profit was $833 million, an increase of 7% from the prior year, and gross margin expanded 50 basis points to 18.7%. Net income was $296 million and diluted EPS was $31.51 per share. On an adjusted basis, net income was $306 million and diluted EPS was $32.55. Adjusted EBITDA for the 12 months was $478 million, up 3% year-over-year or 10.7% of net sales. We generated $400 million in operating cash flow and $364 million of free cash flow. We ended the year with $645 million of available liquidity, along with a net leverage ratio of 0.6x. Our full year performance provides us with a fortified balance sheet that positions us well going into a more challenging cycle while giving us the flexibility to execute on our strategy more effectively.

正如德懷特所說，2022 年確實是我們公司歷史上最好的財務業績之一。全年淨銷售額為 45 億美元，比上年增長 4%。毛利潤為 8.33 億美元，比上年增長 7%，毛利率增長 50 個基點至 18.7%。淨收入為 2.96 億美元，攤薄後每股收益為 31.51 美元。在調整後的基礎上，淨收入為 3.06 億美元，攤薄後每股收益為 32.55 美元。 12 個月的調整後 EBITDA 為 4.78 億美元，同比增長 3% 或淨銷售額的 10.7%。我們產生了 4 億美元的運營現金流和 3.64 億美元的自由現金流。截至年底，我們擁有 6.45 億美元的可用流動資金，淨槓桿率為 0.6 倍。我們全年的業績為我們提供了一個強化的資產負債表，使我們能夠很好地進入一個更具挑戰性的周期，同時使我們能夠靈活地更有效地執行我們的戰略。

Now looking at the fourth quarter, our performance was solid despite a shift in market sentiment and a swift decline in volume starting in mid-November that continued through the end of the year. We generated record operating cash and delivered strong margins for both our specialty and structural product categories. Net sales were $848 million, and when we compare this to the fourth quarter of 2021, a period where we saw significantly strong demand and price inflation, net sales were down 13%. Specialty product sales represented 70% of net sales, up from 66% last year, and they were down only 8% over the prior year, while structural product sales were down 23% due to significant year-over-year declines in commodity prices as well as decreases in volume. Gross profit was $151 million for the quarter, while total gross margin was 17.8%, with specialty margin of 21.1% and structural margin of 10.4%. 82% of our gross profit was from specialty product sales, up from 72% in the prior year period.

現在來看第四季度，儘管市場情緒發生了變化，並且從 11 月中旬開始一直持續到年底的交易量迅速下降，但我們的業績仍然穩健。我們產生了創紀錄的運營現金，並為我們的專業和結構產品類別帶來了可觀的利潤。淨銷售額為 8.48 億美元，當我們將此與 2021 年第四季度（需求和價格通脹明顯強勁的時期）進行比較時，淨銷售額下降了 13%。特種產品銷售額占淨銷售額的 70%，高於去年的 66%，僅比上年下降 8%，而由於大宗商品價格同比大幅下降，結構性產品銷售額下降了 23%以及體積減小。本季度毛利潤為 1.51 億美元，總毛利率為 17.8%，專業利潤率為 21.1%，結構性利潤率為 10.4%。我們 82% 的毛利來自特色產品銷售，高於去年同期的 72%。

Turning now to the fourth quarter results for specialty products. Net sales were $592 million, down 8% year-over-year. As I mentioned earlier, this decline was primarily driven by lower volume compared to the prior year period, where demand was very strong. Gross profit on specialty product sales was $125 million, down $16 million given the sales decline. Specialty gross margin was 21.1%, up 20 basis points when compared to the third quarter of 2022 and down 80 basis points year-over-year. Through the first 7 weeks of 2023, specialty products gross margin was in the range of 18% to 19%, with daily sales volumes down approximately 15% compared to prior year, reflecting the challenging macro environment.

現在轉向特種產品的第四季度業績。淨銷售額為 5.92 億美元，同比下降 8%。正如我之前提到的，這種下降主要是由於與去年同期相比銷量下降，而去年同期需求非常強勁。特殊產品銷售的毛利潤為 1.25 億美元，由於銷售額下降而減少了 1600 萬美元。專業毛利率為 21.1%，與 2022 年第三季度相比上升 20 個基點，同比下降 80 個基點。 2023 年前 7 週，特種產品毛利率在 18% 至 19% 之間，日銷量較上年同期下降約 15%，反映出充滿挑戰的宏觀環境。

Now regarding fourth quarter results for structural products, net sales were $256 million, down 23% compared to the prior year period. This decrease was primarily due to the year-over-year decline in average composite lumber and panel prices and to a lesser extent, lower volume. For random length, the average price in the fourth quarter of 2022 for framing lumber was $449 per 1,000 board foot, down 36% year-over-year, and the average price for panels was $528 per 1,000 square foot, down 26%. Structural sales volume decreased approximately 11% year-over-year, particularly later in the quarter as market sentiment shifted. Gross profit was $27 million, a decline of 50% year-over-year, also primarily resulting from lower commodity prices, and gross margin was 10.4% as compared to 16.1% in the prior year period. As of the end of the year, lumber prices were down to around $380 per 1,000 board foot and panel prices declined to about $473 per 1,000 square foot, a 23% and 21% decrease, respectively, compared to the start of the fourth quarter. These prices have improved in the first 7 weeks of the year and now are $438 per 1,000 board foot and $507 per 1,000 square foot.

現在關於結構產品的第四季度業績，淨銷售額為 2.56 億美元，比去年同期下降 23%。這一下降主要是由於平均複合木材和麵板價格同比下降，其次是銷量下降。對於隨機長度，2022 年第四季度框架木材的平均價格為每 1,000 板英尺 449 美元，同比下降 36%，面板的平均價格為每 1,000 平方英尺 528 美元，下降 26%。結構性銷量同比下降約 11%，尤其是在本季度末，隨著市場情緒的轉變。毛利潤為 2700 萬美元，同比下降 50%，這也主要是由於大宗商品價格下跌，毛利率為 10.4%，而去年同期為 16.1%。截至年底，木材價格降至每 1,000 板英尺 380 美元左右，面板價格降至每 1,000 平方英尺 473 美元左右，與第四季度初相比分別下降了 23% 和 21%。這些價格在今年的前 7 周有所改善，現在是每 1,000 板英尺 438 美元和每 1,000 平方英尺 507 美元。

Our solid structural margin amid steep commodity price declines demonstrates the exceptional job our team does to manage structural inventory through leveraging consignment and utilizing centralized purchasing and pricing decisions to keep structural inventory levels low and mitigate wood-based commodity price volatility risk. Over the past 2 years, we have reduced structural inventory by approximately 67%, which has significantly improved structural margin stability. Through the first 7 weeks of 2023, structural products gross margin was in the range of 10% to 11% with relatively consistent sales volumes when compared to last year. As a reminder, we estimate our normal structural margin to be approximately 9%. This range excludes any net impact that could arise from inventory adjustments. We will continue to evaluate market pricing for wood-based commodities and adjust accordingly at the end of each period.

在大宗商品價格急劇下跌的情況下，我們穩固的結構性利潤率表明，我們的團隊通過利用寄售和集中採購和定價決策來管理結構性庫存，以保持較低的結構性庫存水平並減輕基於木材的商品價格波動風險。在過去的 2 年裡，我們減少了約 67% 的結構性庫存，這顯著提高了結構性利潤率的穩定性。 2023 年前 7 週，結構產品毛利率在 10% 至 11% 之間，銷量與去年同期相比相對穩定。提醒一下，我們估計我們的正常結構利潤率約為 9%。該範圍不包括庫存調整可能產生的任何淨影響。我們將繼續評估木質商品的市場定價，並在每期末進行相應調整。

For the fourth quarter, SG&A was $92 million, relatively consistent with the quarterly run rate we've experienced throughout 2022. For the full year, SG&A was $366 million, up 14% over fiscal year 2021. For both Q4 and the full year, the year-over-year changes in SG&A were due to higher delivery costs, along with investments to build capabilities in our workforce and to support our specialty growth and improve the effectiveness of our distribution facilities. Net income was $32 million and diluted EPS was $3.50 per share. On an adjusted basis, net income was $36 million and diluted EPS was $3.97. The fourth quarter tax rate was 21.5%, in line with our expectations. For the first quarter of 2023, we anticipate our tax rate to be in the range of 24% to 28%. Adjusted EBITDA was $63 million or 7.4% of net sales, a strong result given current market conditions.

第四季度，SG&A 為 9200 萬美元，與我們在整個 2022 年經歷的季度運行率相對一致。全年，SG&A 為 3.66 億美元，比 2021 財年增長 14%。對於第四季度和全年， SG&A 的同比變化是由於更高的交付成本，以及為建設我們的員工能力、支持我們的專業增長和提高我們的分銷設施的效率而進行的投資。淨收入為 3200 萬美元，攤薄每股收益為 3.50 美元。在調整後的基礎上，淨收入為 3600 萬美元，攤薄後每股收益為 3.97 美元。第四季度稅率為 21.5%，符合我們的預期。對於 2023 年第一季度，我們預計我們的稅率將在 24% 至 28% 之間。調整後的 EBITDA 為 6300 萬美元，占淨銷售額的 7.4%，考慮到當前的市場狀況，這是一個強勁的結果。

Turning now to cash flow and working capital. During the fourth quarter, we generated record operating and free cash flow of $154 million and $137 million, respectively. For the full year, we generated $400 million in operating cash flow and $364 million in free cash flow. Our fourth quarter cash generation was supported by $122 million reduction in receivables and a $68 million reduction in inventory, reflecting some deflation and impact of the softening demand for building products. We ended the year with $484 million of inventory, down 10% sequentially from the third quarter as we continue to manage buying decisions and adjust overall inventory levels to market conditions. Since the end of the year, we've reduced inventory by 5%, driven by a reduction in specialty inventory. During the year, we allocated $169 million of capital. In October, we acquired Vandermeer Forest Products for $67 million, extending our geographic reach to the Pacific Northwest, which provides us a platform for specialty growth. Capital investments for the full year were approximately $36 million, of which $17 million was spent in Q4. The full annual amount, primarily enhancements to our distribution branches and upgrades to our fleet of rolling stock, represents the highest annual capital investment level in our history, and we expect capital investments to remain around $30 million in 2023. Earlier in the year, we repurchased 9% of our outstanding shares for $66 million, of which $60 million was done through our accelerated share repurchase program. Currently, we have $34 million remaining under our authorization for additional opportunistic share buybacks. As a reminder, our guiding principles for capital allocation remain consistent. We intend to maintain a strong balance sheet, which enables us to invest in our business through economic cycles while maintaining a long-term target of net leverage of 3x or less.

現在轉向現金流和營運資金。第四季度，我們的運營現金流和自由現金流分別達到創紀錄的 1.54 億美元和 1.37 億美元。全年，我們產生了 4 億美元的運營現金流和 3.64 億美元的自由現金流。應收賬款減少 1.22 億美元，庫存減少 6,800 萬美元，這反映了一些通貨緊縮和建築產品需求疲軟的影響，為我們第四季度的現金產生提供了支持。由於我們繼續管理購買決策並根據市場情況調整整體庫存水平，我們在年底的庫存為 4.84 億美元，比第三季度連續下降 10%。自今年年底以來，在專業庫存減少的推動下，我們的庫存減少了 5%。年內，我們分配了 1.69 億美元的資金。 10 月，我們以 6700 萬美元的價格收購了 Vandermeer Forest Products，將我們的地理範圍擴展到太平洋西北地區，這為我們提供了一個專業增長平台。全年的資本投資約為 3600 萬美元，其中 1700 萬美元用於第四季度。年度總金額，主要是對我們的分銷分支機構的改進和對我們機車車隊的升級，代表了我們歷史上最高的年度資本投資水平，我們預計 2023 年的資本投資將保持在 3000 萬美元左右。今年早些時候，我們以 6600 萬美元回購了我們 9% 的流通股，其中 6000 萬美元是通過我們的加速股票回購計劃完成的。目前，我們授權剩餘 3400 萬美元用於額外的機會性股票回購。提醒一下，我們的資本配置指導原則保持一致。我們打算保持強勁的資產負債表，這使我們能夠在經濟周期中投資於我們的業務，同時保持 3 倍或更低的淨槓桿率的長期目標。

Looking now at our balance sheet. As of the end of fiscal year 2022, cash on hand was $299 million, a record level. Total debt was $573 million and net debt was $274 million, and we have no material debt maturities until 2029. Net leverage was 0.6x, down from 1.1x at the end of 2021. When considering our cash on hand and undrawn revolver capacity of $346 million, available liquidity was $645 million at the end of 2022.

現在看看我們的資產負債表。截至 2022 財年末，手頭現金為 2.99 億美元，創歷史新高。總債務為 5.73 億美元，淨債務為 2.74 億美元，我們在 2029 年之前沒有實質性債務到期。淨槓桿率為 0.6 倍，低於 2021 年底的 1.1 倍。考慮到我們的手頭現金和未提取的循環能力為 346 美元億美元，到 2022 年底可用流動資金為 6.45 億美元。

Reflecting on the past year, we have been deliberate in our approach to fortify our balance sheet, and when combined with our strong EBITDA and cash generation has significantly improved our financial position to weather this more challenging cycle and support our strategic initiatives, in turn, enabling us to expand our capital allocation prospects and invest in high-return opportunities, such as organic growth investments, acquisitions and share repurchases. As Dwight mentioned earlier, we are expecting weaker demand for 2023 that was foreshadowed by the volume decline we saw late in the fourth quarter of 2022. In the current environment, we expect that volumes will be softer and that specialty pricing will remain under some pressure, which will result in short-term margin compression that is slightly lower than our midterm targets. Our focus remains on executing our strategy, maintaining a strong financial position and delivering long-term value to our shareholders.

回顧過去的一年，我們一直在深思熟慮地加強我們的資產負債表，結合我們強勁的 EBITDA 和現金生成，顯著改善了我們的財務狀況，以度過這個更具挑戰性的周期並支持我們的戰略舉措，反過來，使我們能夠擴大資本配置前景並投資於高回報機會，例如有機增長投資、收購和股票回購。正如 Dwight 之前提到的，我們預計 2023 年的需求將減弱，這是我們在 2022 年第四季度末看到的銷量下降所預示的。在當前環境下，我們預計銷量將會疲軟，專業定價仍將面臨一定壓力，這將導致短期利潤率壓縮略低於我們的中期目標。我們的重點仍然是執行我們的戰略，保持強勁的財務狀況並為我們的股東創造長期價值。

Now I'll turn the call back over to Dwight for closing remarks.

現在我將把電話轉回 Dwight 以作結束語。

Thanks, Kelly. In closing, for the fourth quarter and full year 2022, we delivered solid results, highlighted by strong margins and record operating cash flow generation. We continue to make good progress on our strategic initiatives and at focusing on our higher-value specialty product sales, optimizing effectiveness in our distribution branches and building capabilities within the organization. Our financial position is very strong with ample liquidity, no impending material debt maturities and a low leverage profile. We have built a stronger, more resilient business and are prepared to navigate the downturn and continue to progress towards our aspiration to be the leading wholesale building products distributor for the top brands and customers in North America. We remain focused on the things within our control and aim to create long-term value for all stakeholders, and we are steadfastly committed to that goal.

謝謝，凱利。最後，在第四季度和 2022 年全年，我們取得了可觀的業績，突出表現在強勁的利潤率和創紀錄的運營現金流產生。我們繼續在我們的戰略計劃上取得良好進展，並專注於我們更高價值的專業產品銷售，優化我們分銷分支機構的效率並在組織內建設能力。我們的財務狀況非常強勁，流動性充足，沒有即將到期的重大債務，槓桿率很低。我們已經建立了一個更強大、更有彈性的業務，並準備好度過低迷時期，並繼續朝著我們成為北美頂級品牌和客戶的領先建築產品批發分銷商的願望前進。我們始終專注於我們控制範圍內的事情，旨在為所有利益相關者創造長期價值，我們堅定不移地致力於實現這一目標。

That concludes our prepared remarks. At this time, we are happy to answer any questions.

我們準備好的發言到此結束。目前，我們很樂意回答任何問題。

(Operator Instructions) Our first question comes from Greg Palm with Craig-Hallum Capital Group.

（操作員說明）我們的第一個問題來自 Craig-Hallum Capital Group 的 Greg Palm。

This is Danny Eggerichs on for Greg today. Just more broadly on the overall housing environment. Maybe your thoughts right now relative to a month or 2 months ago, given what a lot of the homebuilders have been -- comments coming from their calls, maybe a bit better than feared. So I guess just looking ahead to 2023, how you're seeing the overall -- maybe more new home construction market relative to what you were thinking a month or 2 months ago?

我是 Danny Eggerichs 今天為 Greg 做的。只是更廣泛地涉及整體住房環境。也許你現在的想法與一兩個月前相比，考慮到許多房屋建築商的情況——來自他們電話的評論，可能比擔心的要好一點。所以我想只是展望 2023 年，你如何看待整體 - 與你一個月或兩個月前的想法相比，可能會有更多的新房建築市場？

We still expect it to be a challenging market on the new home construction side in 2023. I think the mood is a bit better, but it's still expected to be double digits down year-over-year. We think that's appropriate just given the activity levels. We're hearing from the builders in their communities, the conversations as a part of -- at the builder show earlier this year and what we're seeing in our business, what we hear from our customers. So we still think it will be a down year on the new home construction side and our guidance or expectation is kind of in the double-digit level mid-teens or so.

我們仍然預計 2023 年新房建設方面將是一個充滿挑戰的市場。我認為市場情緒好一些，但預計仍將同比下降兩位數。考慮到活動水平，我們認為這是合適的。在今年早些時候的建築展上，我們聽到了他們社區中建築商的談話，以及我們在業務中看到的內容，以及我們從客戶那裡聽到的內容。因此，我們仍然認為新房建設方面今年將是低迷的一年，我們的指導或預期在兩位數左右。

Got it. Maybe just digging into one on the specialty margin, I appreciate the color quarter-to-date so far in that 18% to 19% range. Maybe just digging into that a little bit more. Obviously, coming from that 21.1% in Q4, that's a fairly sizable sequential decline, which isn't normal seasonality. So whether it's pricing or volumes, maybe you can just (inaudible) some of that stuff and a little more color on what's going on with the specialty margin.

知道了。也許只是在專業利潤率上挖掘一個，我很欣賞到目前為止在 18% 到 19% 範圍內的顏色。也許只是深入研究一下。顯然，從第四季度的 21.1% 來看，這是一個相當大的連續下降，這不是正常的季節性。因此，無論是定價還是數量，也許你可以（聽不清）其中的一些東西，以及關於專業利潤率的更多顏色。

Sure, Danny. Well, I think we've been saying for a number of months now that we didn't expect the 21% to be a sustainable number when we went to a more normalized environment. We've been talking about that 19% to 20% type of range. Of course, we're seeing a bit more impact than what you would consider normal, I believe. But the team has done a great job holding price in this rapidly changing demand environment, and the primary reason we're seeing that decline is really around the demand pressure. Particularly, we've had lower demand on EWP recently. That's a high-margin product. However, as costs adjust, as we keep going, I think we would expect to stay in a similar range that we're seeing right now, that 18% to 19%, unless things get a lot worse. But right now, I think that's coming right in line with what we thought we would be when the market would correct. Then there's just other dynamics as far as working through market share and inventory management. So yes, I don't think we are surprised by that impact, and we're managing it really closely. Like I said, the team is doing an excellent job on price right now.

當然，丹尼。好吧，我想我們幾個月來一直在說，當我們進入一個更加正常化的環境時，我們並不期望 21% 是一個可持續的數字。我們一直在談論 19% 到 20% 的範圍。當然，我相信我們看到的影響比你認為正常的要大一些。但在這個瞬息萬變的需求環境中，該團隊在保持價格方面做得很好，我們看到價格下跌的主要原因實際上是需求壓力。特別是，我們最近對 EWP 的需求較低。那是一種高利潤的產品。然而，隨著成本的調整，隨著我們的繼續前進，我認為我們預計會保持在我們現在看到的類似範圍內，即 18% 到 19%，除非情況變得更糟。但現在，我認為這與我們認為市場調整時的情況一致。然後，就通過市場份額和庫存管理進行工作而言，還有其他動力。所以是的，我認為我們對這種影響並不感到驚訝，而且我們正在密切管理它。正如我所說，該團隊目前在價格方面做得非常出色。

Yes, I'll add a bit of color to that. I think Kelly captured it really well. I think the demand environment has really evolved meaningfully in the past 60 days or so. I think the team has been really focused on a couple of things. One, making sure we are focusing on our customers and servicing them in a high-quality way. So we've done a lot of work around customer segmentation and that just remains a priority for us. Then to Kelly's point, the mix. Mix has shifted a bit. EWP -- higher margin category for us. We're seeing fair amount of demand pressure there and working through that. Also, the supply scenario is very different now than it was a quarter ago and manufacturers are adjusting prices to reflect that, and we're working to kind of manage through that as well. So we're confident that the margin profile in our specialty business will continue to be meaningfully better than it was pre-pandemic. But we want to make sure we're in a position to be opportunistic, protect our share and continue to focus on our customers in a high-quality way.

是的，我會為此添加一些顏色。我認為凱利捕捉得非常好。我認為在過去 60 天左右的時間裡，需求環境確實發生了有意義的變化。我認為團隊一直專注於幾件事。第一，確保我們專注於我們的客戶並以高質量的方式為他們提供服務。因此，我們圍繞客戶細分做了很多工作，這仍然是我們的首要任務。然後到了凱利的觀點，混合。混音發生了一點變化。 EWP——對我們來說利潤率更高的類別。我們在那裡看到了相當大的需求壓力，並且正在努力解決。此外，現在的供應情況與一個季度前有很大不同，製造商正在調整價格以反映這一點，我們也在努力通過這種方式進行管理。因此，我們有信心我們專業業務的利潤率狀況將繼續比大流行前更好。但我們希望確保我們能夠投機取巧，保護我們的份額並繼續以高質量的方式關注我們的客戶。

Our first (sic) [next] question comes from Kurt Yinger with D.A. Davidson.

我們的第一個（原文如此）[下一個] 問題來自 D.A. 的 Kurt Yinger。戴維森。

There's been a pretty consistent theme in building products here in the second half of '22 around channel inventory destocking and some areas have been impacted more than others, but very few seem to have completely avoided that dynamic. Last quarter, you talked about seeing that a bit in millwork, but as you kind of look across the different areas within specialty today, are there any that stand out to you where you feel like order rates are being really negatively impacted by customers running down inventories or anything of that nature?

在 22 年下半年，圍繞渠道庫存去庫存構建產品的主題非常一致，一些領域受到的影響比其他領域更大，但似乎很少有人完全避免了這種動態。上個季度，您談到在木製品中看到了一點，但當您審視當今專業領域的不同領域時，是否有任何突出的地方讓您覺得訂單率確實受到客戶流失的負面影響庫存或任何類似性質的東西？

We're absolutely seeing different demand profiles across our specialty categories. Interestingly enough, millwork is actually holding up pretty well as well as our industrial categories, and we're probably seeing the most pressure on the EWP side, and I think it's probably consistent with what manufacturers are saying and the overall market saying, just given what's happening with starts and things of that nature. So we'll continue to manage through that. We've actually had some success in that category in a couple of our regions. We're committed to continuing to position ourselves to be the distributor of choice around that category and all the value-add things we do to make sure we can continue to support our customers in a high-quality way.

我們絕對在我們的專業類別中看到不同的需求概況。有趣的是，木製品實際上和我們的工業類別一樣表現良好，我們可能在 EWP 方面看到最大的壓力，我認為這可能與製造商所說的和整個市場所說的一致，只是給出starts 和那種性質的事情發生了什麼。所以我們將繼續解決這個問題。實際上，我們在幾個地區的該類別中取得了一些成功。我們致力於繼續將自己定位為該類別的首選分銷商，以及我們所做的所有增值工作，以確保我們能夠繼續以高質量的方式支持我們的客戶。

Got it, I appreciate that. But does it seem like we've largely moved past that in Q4 and we're kind of back at normalized levels and might be -- or might see a little bit of a seasonal bump heading into Q2? Or where do you think we are in that destocking equation?

明白了，我很感激。但是看起來我們在第四季度已經基本超越了這一點並且我們有點回到正常水平並且可能 - 或者可能會看到一些季節性的顛簸進入第二季度？或者您認為我們在去庫存等式中處於什麼位置？

Yes, I think it's still relatively early in the year. We kind of shared what we're seeing through the first 7 weeks, which is volume down in specialty year-over-year. Granted, the comparable was a pretty strong one in '22 with the big bump up in demand and inflation, so that's something to be mindful of. But we still think we're not quite all the way there yet. I think our customers are still a bit cautious, still trying to navigate. There's uncertain environment, and they're being very lean in terms of their stocking levels. We are making sure that we are also managing that appropriately. So not quite all the way there, and again, we'll see how this year goes, but we think we're prepared and positioned to navigate it successfully and be ready to pounce when we see recovery.

是的，我認為今年還比較早。我們有點分享了我們在前 7 週看到的情況，即專業業務量同比下降。誠然，可比對像在 22 年非常強勁，需求和通貨膨脹率大幅上升，因此需要注意這一點。但我們仍然認為我們還沒有走到那一步。我認為我們的客戶仍然有點謹慎，仍在嘗試導航。環境不確定，而且他們的庫存水平非常低。我們正在確保我們也在適當地管理它。因此，並非完全如此，我們將再次看到今年的情況，但我們認為我們已經做好準備並準備好成功駕馭它，並準備好在我們看到復蘇時突襲。

Got it, makes sense. Then just at a high level, could you talk about any vendor wins or expansions with key brands that you're particularly excited about in 2023? Do you feel like the current environment is more or less advantageous in terms of kind of the refreshed BlueLinx platform starting to resonate with suppliers?

明白了，有道理。那麼在較高的層面上，您能否談談您在 2023 年特別興奮的關鍵品牌的任何供應商勝利或擴張？就更新後的 BlueLinx 平台開始與供應商產生共鳴而言，您是否覺得當前環境或多或少有利？

Yes, I mean it's a fun topic, and I could talk about that a lot, so I'm going to try to rein myself in a bit here. Yes, the team has worked really hard to make sure that we understand and build deeper relationships with suppliers that we feel are strategic, and we've made some nice progress there. So siding is a good example. We've been able to really secure some more supply and even a stronger distribution relationship in the Texas market and a few others with [Allura], something we're very, very excited about. We're continuing to make progress with some other major siding suppliers that we've worked with historically in a couple of other markets as well and excited around what that's going to do for the business. Then we've also looked to partner even more closely with some of our larger suppliers on the EWP side, and that's going to help us and position us well in a couple of regions where we weren't at the supply level, but I wanted us to be to make sure we could take care of opportunities. So definitely progress, and I feel encouraged by that.

是的，我的意思是這是一個有趣的話題，我可以談論很多，所以我會試著在這裡控制一下自己。是的，該團隊非常努力地確保我們了解並與我們認為具有戰略意義的供應商建立更深層次的關係，並且我們在這方面取得了一些不錯的進展。所以壁板就是一個很好的例子。我們已經能夠真正獲得更多的供應，甚至在德克薩斯市場和其他一些市場與 [Allura] 建立更牢固的分銷關係，我們對此感到非常非常興奮。我們將繼續與其他一些主要壁板供應商取得進展，我們在其他幾個市場也曾與之合作過，並對這將為業務帶來的影響感到興奮。然後我們還尋求與 EWP 方面的一些較大供應商更緊密地合作，這將幫助我們並在我們不在供應水平的幾個地區處於有利地位，但我想我們要確保我們能夠抓住機會。所以絕對是進步，我對此感到鼓舞。

Then on the customer side as well, we spent a lot of time and energy making sure we understand where critical customers are, both regionally and nationally. We've been able to secure some wins in our specialty categories with them as well. That positions us well, I think, as we move through 2023, again, against this broader backdrop of a tougher macro environment. But I think our supply situation, probably in the strongest [position] it has been in a while, and we're starting to make some good traction with the customers that we're focused on.

然後在客戶方面，我們也花了很多時間和精力來確保我們了解關鍵客戶在哪裡，包括地區和國家。我們也已經能夠通過他們在我們的專業類別中獲得一些勝利。我認為，隨著我們再次邁入 2023 年，在更嚴峻的宏觀環境這一更廣泛的背景下，這使我們處於有利地位。但我認為我們的供應情況，可能處於一段時間以來最強勁的 [位置]，我們開始對我們關注的客戶產生良好的吸引力。

Great, that's really encouraging. Then just my last one, could you talk a bit about the contributions you've seen thus far from Vandermeer, and any kind of initial learnings or observations regarding that business and deal?

太好了，這真的很鼓舞人心。然後是我的最後一個，你能談談你到目前為止從 Vandermeer 看到的貢獻，以及關於該業務和交易的任何初步學習或觀察嗎？

Yes, we're really excited about having Vandermeer Forest Products as a part of the BlueLinx family. Tremendously talented team, very customer-oriented, very commercially minded. They have great, deep, high-quality relationships, and we're incredibly proud of the progress we've made in a really short period of time. The thing that's really been very exciting is the opportunity for product expansion in that market. They had really good capabilities in specialty, particularly in the siding side. We've had the ability to improve their EWP offering, bring in some additional products that they haven't had access to, which is creating some good opportunities for growth, and we're starting to see that. We've been able to kind of grow with some of the existing customers as we establish programs for 2023.

是的，我們真的很高興 Vandermeer Forest Products 成為 BlueLinx 家族的一員。非常有才華的團隊，非常以客戶為導向，非常有商業頭腦。他們擁有良好、深厚、高質量的關係，我們為我們在非常短的時間內取得的進步感到無比自豪。真正令人興奮的是在該市場擴展產品的機會。他們在專業方面具有非常好的能力，尤其是在側線方面。我們有能力改進他們的 EWP 產品，引入一些他們無法訪問的額外產品，這正在創造一些良好的增長機會，我們開始看到這一點。隨著我們為 2023 年制定計劃，我們已經能夠與一些現有客戶一起成長。

Then the operational side, they worry -- they didn't own their own trucks, didn't have their own fleet. So they generally delivered products through third parties. We started to put some equipment into that market, which provides a little bit more consistency around delivery, and we're seeing that translate to growth opportunities as well. So early days yet, but integration is off to a good start, and we're excited about the possibilities of that business over time.

然後是運營方面，他們擔心——他們沒有自己的卡車，沒有自己的車隊。所以他們一般都是通過第三方來交付產品。我們開始將一些設備投入該市場，這在交付方面提供了更多的一致性，我們也看到這也轉化為增長機會。現在還早，但整合已經有了一個良好的開端，隨著時間的推移，我們對這項業務的可能性感到興奮。

Yes, and I'll just add that, related to the acquisition model, they're actually over-delivering to that model, so the financials have been excellent. It's just been a really nice accretive business to our company.

是的，我只想補充一點，與收購模式相關，他們實際上超額交付了該模式，因此財務狀況非常好。這對我們公司來說是一項非常好的增值業務。

The next question comes from Reuben Garner with The Benchmark Company.

下一個問題來自 The Benchmark Company 的 Reuben Garner。

Maybe the follow-up on the mix discussion within specialty. Is it safe to say that EWP was down more consistent -- I guess you could just use the start of this year -- more consistent with that single-family starts decline that you discussed in the month of January? And the other products were down but much more modestly, is that a safe assumption?

也許是專業領域內混合討論的後續行動。可以肯定地說 EWP 下降更一致——我想你可以使用今年年初——更符合你在 1 月份討論的單戶住宅開始下降嗎？其他產品的跌幅要小得多，這是一個安全的假設嗎？

Yes, I think it's safe to say that the biggest impact we've seen is EWP as it relates to the finishing up of the pipeline that came out of last year, as well as the starts down, as you mentioned. So I think both of those are contributing and that's what we're seeing as it relates to the product lines. The other product lines are actually really holding, but really hanging in there as a whole. Clearly, we have year-over-year variances, as Dwight mentioned, that are pretty sporty, right? So last year is really not the best benchmark, but I think we're certainly more that than anything else.

是的，我認為可以肯定地說，我們看到的最大影響是 EWP，因為它與去年完成的管道以及開始下降有關，正如你提到的那樣。所以我認為這兩者都在做出貢獻，這就是我們所看到的與產品線相關的情況。其他產品線實際上真的很穩固，但作為一個整體確實懸而未決。顯然，正如 Dwight 提到的那樣，我們有逐年差異，這非常有運動性，對吧？所以去年確實不是最好的基準，但我認為我們肯定比其他任何事情都更重要。

And those other products would be more exposed to the R&R market that you're thinking is more flattish, right? So in that same vein, is there something going on in the structural side to start this year? I was a little surprised to see those volumes flat. I know you guys weren't exactly chasing business a year ago, so maybe it's just an easier comp dynamic. But any color you could give? Is it inventory rebuild at some of your customers after they got carried away at the end of '22? Any color on why that was so strong at the start of the year?

而那些其他產品將更多地暴露於您認為更平坦的 R&R 市場，對嗎？因此，以同樣的方式，今年開始在結構方面有什麼進展嗎？看到這些數量持平，我有點驚訝。我知道你們一年前並沒有真正追逐業務，所以也許這只是一種更容易的競爭動態。但是你能給什麼顏色？您的一些客戶在 22 年底被沖昏頭腦後是否進行了庫存重建？為什麼在年初如此強勁？

Yes, I think it's more of the first thing, which is really we have always -- we've been just trying to maintain a steady structural business as it relates to mostly focusing our specialty business and then continuing on with that core business volume and market share that we have, and I think you're seeing that. In addition, our team is just really stepping up as it relates to ensuring that we're getting everything that we can in this market. Not only that, the margins we've been able to generate, considering the deflationary ups and downs that we keep seeing in the commodity market -- albeit it's not been as dramatic as it was previously. But it certainly has been downward pressure, and the team is just doing an excellent job on both fronts, both holding volume and maintaining that price. We're still very committed to the lean inventory approach, that hasn't changed. In fact, it's leaner now than it was even 12 months ago. So I think it's just continuing to show that it works and gives us the time to focus on our specialty strategy.

是的，我認為這更多的是第一件事，這實際上是我們一直以來的——我們一直在努力保持穩定的結構性業務，因為它主要涉及我們的專業業務，然後繼續核心業務量和我們擁有的市場份額，我想你已經看到了。此外，我們的團隊確實在加強，因為這與確保我們在這個市場上獲得我們所能獲得的一切有關。不僅如此，考慮到我們在商品市場上不斷看到的通貨緊縮起伏，我們已經能夠產生的利潤——儘管它不像以前那樣劇烈。但這肯定是下行壓力，團隊在兩方面都做得很好，既保持了成交量又保持了價格。我們仍然非常致力於精益庫存方法，這一點沒有改變。事實上，它現在比 12 個月前還要精簡。所以我認為它只是繼續表明它有效，並讓我們有時間專注於我們的專業戰略。

Great, and then last one for me, Kelly, you made a comment about your midterm margin target and I missed it. I want to make sure I heard it correctly. Could you repeat what you said? I think it was something about this year coming in below that, but could you just clarify for me?

太好了，最後一個對我來說，凱利，你對你的中期保證金目標發表了評論，但我錯過了。我想確保我沒聽錯。你能重複你說的話嗎？我認為這是今年低於該水平的原因，但你能為我澄清一下嗎？

Yes, I think what we're saying is we're -- we put up some midterm targets in June, right? So we said the volumes are going to be softer this year and that the specialty pricing would remain under some pressure this year. When we did those midterm targets, it was assuming some normalization but not really the decline that we've seen in the market, at least to date. So we do expect there should be some short-term margin compression. I think we talked -- we saw that in the 18% to 19% range, which is about 100 basis points lower than the range we had given previously if we move to a more normal environment by [19% to 20%]. So that's what we're alluding to there in the [SCRIP].

是的，我想我們要說的是——我們在 6 月份設定了一些中期目標，對嗎？因此，我們表示今年的銷量將下降，專業定價今年仍將面臨一定壓力。當我們制定這些中期目標時，它假設某種程度的正常化，但並不是我們在市場上看到的真正下降，至少到目前為止是這樣。因此，我們確實預計短期利潤率應該會有所壓縮。我想我們談過了——我們看到在 18% 到 19% 的範圍內，如果我們轉向更正常的環境 [19% 到 20%]，這比我們之前給出的範圍低大約 100 個基點。這就是我們在 [SCRIP] 中提到的內容。

Got it, very helpful. If I could sneak one more in, actually. So the structural category is -- I don't want to say it's easy, but it's easier for us to kind of get a sense on where pricing is. Can you give us any kind of indication on what specialty pricing looks like or could look like this year? Maybe what is down year-over-year for the first 7 weeks, just something that kind of -- there's a lot of moving pieces within there, I'm sure EWP is the bulk of the pressure, but anything you could give us would be helpful.

明白了，很有幫助。實際上，如果我能再偷偷進去一個就好了。所以結構類別是——我不想說這很容易，但我們更容易了解定價在哪裡。你能給我們任何關於今年專業定價的情況或可能情況的指示嗎？也許前 7 週的同比下降，只是那種 - 裡面有很多移動的部分，我相信 EWP 是主要的壓力，但你能給我們的任何東西都會有幫助。

Yes, so like we said, it's a bit of an unusual environment where you have rates doubling in under a year, supply constraints easing in a relatively short period of time in the second half and other uncertainty in the broader environment coming together that I think has really kind of impacted demand in a meaningful way for our products and the industry in general. So as that settles and there's a little bit more certainty around rates, we think the overall environment will be closer to what we expect on a normalized basis. But all those things together have contributed to manufacturers looking at price as a way to drive volume in the market. So we've seen the pricing pressure on EWP side. We're seeing it to a lesser extent in other specialty categories. But we expect that to continue to be the case as folks try to find the equilibrium price that makes the most sense in a much softer market.

是的，正如我們所說，這是一個有點不尋常的環境，利率在不到一年的時間內翻了一番，供應限制在下半年相對較短的時間內有所緩解，我認為更廣泛環境中的其他不確定性匯集在一起確實以一種有意義的方式影響了我們的產品和整個行業的需求。因此，隨著情況的穩定和利率的確定性增加，我們認為整體環境將更接近我們在正常化基礎上的預期。但所有這些因素共同促使製造商將價格視為推動市場銷量的一種方式。所以我們已經看到了 EWP 方面的定價壓力。我們在其他專業類別中看到的程度較小。但我們預計情況會繼續如此，因為人們試圖找到在疲軟得多的市場中最合理的均衡價格。

So to Kelly's point, we think that will put pressure on specialty margins a bit. But again, we're prepared to manage through that. We're going to make sure our costs are appropriately aligned with where demand is. We're going to make sure that we're focused on the customers that we have an opportunity to grow wallet share with. We're going to try to be opportunistic around getting share with good customers and markets where we have good capability and kind of manage through that. But we think the pricing environment should be fairly similar to what we've seen so far this year until things normalize.

因此，就凱利的觀點而言，我們認為這會給專業利潤率帶來一些壓力。但同樣，我們準備好解決這個問題。我們將確保我們的成本與需求適當地保持一致。我們將確保我們專注於我們有機會增加錢包份額的客戶。我們將嘗試抓住機會與我們擁有良好能力並通過這種方式進行管理的優質客戶和市場分享。但我們認為，在一切恢復正常之前，定價環境應該與我們今年迄今為止所看到的非常相似。

The next question comes from Jeff Stevenson with Loop Capital Markets.

下一個問題來自 Loop Capital Markets 的 Jeff Stevenson。

This is Garik Shmois on for Jeff. I wanted to ask, first off, just on the repair and remodel side, I appreciate your view of flat for this year. But just wondering if you're expecting that to be consistent throughout the year? Or are you seeing perhaps any warning signs there as well just given the inflation and the macro, considering there's been some noise from some of the manufacturers and retailers on the R&R side of the equation.

這是 Jeff 的 Garik Shmois。我想問的是，首先，就維修和改造方面而言，我很欣賞您對今年公寓的看法。但只是想知道您是否期望全年保持一致？或者，考慮到一些製造商和零售商在等式的 R&R 方面發出了一些聲音，考慮到通貨膨脹和宏觀經濟，你是否也看到了任何警告信號。

So yes, we think it's going to be relatively flat. Depending on which forecast you look at, it's either slightly up or slightly down, and so we think it's going to be within that range. There's a couple of things that are supportive of that, we think. If you look at any of the data recently around home pricing, they're generally holding for the most part, and even some instances up slightly year-over-year. We think home equity, again, remains at a historically high level. Just given the cost of debt and the rates that most or many homeowners are locked in at, the opportunity to improve in place and invest in their homes, we think remains meaningful. Coupled with the fact that unemployment still at record low levels. So the homeowner, for the most part, as inflation starts to come down a bit, I think, is a little bit more confident around making investments in their home. So that's our thinking around what's going to provide some of the support for R&R, and we expect that to be relatively consistent through the course of the year. Obviously, if things change in either direction, that outcome and that outlook could change. But that's kind of where we're at right now.

所以是的，我們認為它會相對平穩。根據您查看的預測，它會略微上升或略微下降，因此我們認為它會在該範圍內。我們認為，有幾件事支持這一點。如果您查看最近有關房屋定價的任何數據，它們通常大部分都保持不變，甚至有些情況與去年同期相比略有上升。我們認為房屋淨值再次保持在歷史高位。考慮到債務成本和大多數或許多房主所鎖定的利率，就地改善和投資房屋的機會，我們認為仍然有意義。再加上失業率仍處於歷史低位。因此，在大多數情況下，隨著通貨膨脹率開始下降，我認為房主對投資房屋更有信心了。所以這就是我們對什麼將為 R&R 提供一些支持的想法，我們預計這一年將保持相對一致。顯然，如果事情朝任何一個方向發生變化，那麼結果和前景都可能發生變化。但這就是我們現在所處的位置。

I appreciate that. I wanted to switch to SG&A. You've been having a pretty consistent run rate here in the, call it $92 million per quarter range. Is that a pretty good assumption to still use here in '23? And maybe just speak to some of the cost baskets supporting that, i.e., labor and logistics.

我很感激。我想轉到 SG&A。你在這裡的運行率一直非常穩定，稱之為每季度 9200 萬美元的範圍。在 23 年仍然在這裡使用這個假設是不是一個很好的假設？也許只是談談支持這一點的一些成本籃子，即勞動力和物流。

Sure. One thing I do want to mention is that we do have some Vandermeer cost additive in the fourth quarter. So our run rate was actually a little lower than what it had been in the rest of the year when you consider that. That was probably in the $1.5 million to $2 million range. So we're really closer to $90 million. Certainly, we are going to be -- we look at costs very, very closely, and we are going to ensure that it's aligned with what our profitability profile looks like in this new environment. So I would expect it to not be more than that, of course, and we're going to continue to actually drive efficiency and focus on it, continuing to make adjustments as needed to align with the demand profile.

當然。我想提的一件事是，我們在第四季度確實有一些 Vandermeer 成本添加劑。因此，當您考慮這一點時，我們的運行率實際上略低於今年剩餘時間的運行率。那可能在 150 萬到 200 萬美元之間。所以我們真的很接近 9000 萬美元。當然，我們將會——我們非常、非常密切地關注成本，我們將確保它與我們在這個新環境中的盈利狀況保持一致。所以我希望它不會超過這個，當然，我們將繼續實際提高效率並專注於它，繼續根據需要進行調整以符合需求情況。

The next question comes from Walt Liptak with Seaport.

下一個問題來自 Seaport 的 Walt Liptak。

I wanted to ask one from 60,000 feet. So at the Analyst Day, you guys talked about lumber prices in your long term at [$400], and at that level, the BlueLinx EBITDA at around [$250]. So obviously, there have been some things that have changed since the Analyst Day. I wonder if -- how you think about that? Is it still a ballpark? Or have you given it some new thoughts?

我想問一個來自 60,000 英尺的人。因此，在分析師日，你們談到了長期 [400 美元] 的木材價格，在這個水平上，BlueLinx EBITDA 約為 [250 美元]。很明顯，自分析師日以來發生了一些變化。我想知道——你是怎麼想的？它仍然是一個棒球場嗎？或者你給了它一些新的想法？

I appreciate the question. As you know, Walt, we don't give guidance on an annual basis, but we think -- if I break the business in two, between our specialty and our structural, we'll start with the structural. We feel pretty good about our ability to kind of navigate that environment. I think our performance over the last 1.5 years kind of supports that with meaningful volatility still being able to kind of deliver margins in that 9% range. Even with some of the volatility we saw or the inflation we saw in Q4, we were able to do a bit better than that. So we think, given where prices are now, closer to the historical average than they've been in the past, our ability to kind of execute against that business is pretty good. On the specialty side, similar story, I think we've spent a lot of time and energy optimizing our commercial capability around there as we think about customer segmentation, as we think about improvements around our pricing capability, pricing more consistently, having better visibility around overrides and some other analytics. And we think that's going to be supportive for specialty margins over the medium and definitely over the longer term.

我很欣賞這個問題。如你所知，沃爾特，我們不會每年提供指導，但我們認為 - 如果我將業務一分為二，在我們的專業和結構之間，我們將從結構開始。我們對自己駕馭這種環境的能力感到非常滿意。我認為我們在過去 1.5 年的表現有點支持，有意義的波動仍然能夠在 9% 的範圍內提供利潤率。即使我們在第四季度看到了一些波動或通貨膨脹，我們也能做得更好。因此，我們認為，鑑於現在的價格比過去更接近歷史平均水平，我們對該業務的執行能力相當不錯。在專業方面，類似的故事，我認為我們已經花了很多時間和精力優化我們的商業能力，因為我們考慮客戶細分，因為我們考慮改進我們的定價能力，更一致的定價，更好的可見性圍繞覆蓋和一些其他分析。我們認為這將在中期和長期內支持專業利潤率。

But this current environment is very different than it was in June. You got starts down 15-plus percent. You have rates and affordability a bit higher and you have a lot more supply available. So I think it's going to take a bit of time for that to settle. But we think the core of our strategy is still good, and we're continued and focused on executing against that -- how we drive more specialty volume, both PLEs and margin and how we grow the business and be in the markets that we have great excitement around. So we're going to continue to do that, and so we feel pretty good about where this business will be over the medium and long term.

但目前的環境與六月份大不相同。你的啟動速度下降了 15% 以上。您的利率和負擔能力要高一些，並且有更多的可用供應。所以我認為這需要一些時間才能解決。但我們認為我們戰略的核心仍然很好，我們將繼續並專注於執行這一戰略——我們如何推動更多的專業數量，包括 PLE 和利潤率，以及我們如何發展業務並進入我們擁有的市場周圍很興奮。所以我們將繼續這樣做，所以我們對這項業務在中長期的發展方向感到非常滿意。

Yes, and just to add to that on the model side, structural is in line with the model and specialty is off because of the rapidly demanding -- demand decline that we've seen that really -- that was a normalization model. This is not normal. We're in a fairly severe downturn right now in the short term. So that being said, we still delivered 7.5% EBITDA margin in the fourth quarter. Like I said, we're maintaining margins pretty well for the first 7 weeks. So it's not going to be that number right now on a run rate basis, but certainly, we're holding in as it relates to our key metrics.

是的，只是為了在模型方面補充一點，結構與模型一致，並且由於快速需求 - 我們已經真正看到的需求下降 - 這是一個正常化模型。這是不正常的。從短期來看，我們現在正處於相當嚴重的低迷時期。話雖如此，我們在第四季度仍實現了 7.5% 的 EBITDA 利潤率。就像我說的，我們在前 7 週的利潤率保持得很好。因此，在運行率的基礎上，現在不會是這個數字，但可以肯定的是，我們會堅持下去，因為它與我們的關鍵指標有關。

Great, yes, agree with that. In the first quarter, how are you thinking about your working capital accounts? Seasonally, you typically have to build them a little bit. But what are you thinking of in the current environment?

太好了，是的，同意這一點。在第一季度，您如何看待您的營運資金賬戶？季節性地，您通常需要稍微構建它們。但是在現在的環境下，你在想什麼？

Yes, good news is that what we've been able to do is adjust our inventory as it relates to kind of seeing this downturn. So instead of builds, it's been the opposite. We've actually taken 5% out of our inventory just since year-end through right now, and will continue to be a big focus on our team to bring that inventory down and adjust it to the demand levels. So I feel great about that. The team has made a lot of progress there, big momentum within the organization to ensure that we're being very efficient with our working capital.

是的，好消息是我們能夠做的是調整我們的庫存，因為它與看到這種低迷有關。因此，它不是構建，而是相反。從年底到現在，我們實際上已經從庫存中減少了 5%，並將繼續關注我們的團隊，以降低庫存並根據需求水平進行調整。所以我對此感覺很好。團隊在那裡取得了很大進展，組織內部的巨大動力確保我們的營運資金非常有效。

Great, and the last one for me. How are you thinking about the M&A pipeline? What are the discussions like? Is it a tough time to buy or to negotiate with the company now with the market kind of in this tougher environment?

太好了，對我來說是最後一個。您如何看待併購渠道？討論是什麼樣的？在這種更艱難的環境下，現在是購買或與公司談判的艱難時期嗎？

Yes, that remains a meaningful focus area for us, a big priority. Our pipeline of opportunity is solid -- spending a fair amount of my time along with Sean, who leads our M&A strategy for us, having conversations with potential targets, and building relationships to allow us to move quickly as things mature. So we remain focused on it. We think sellers are adjusting to the new normal in terms of the market environment, and we want to be seen as a partner of choice as they get more comfortable with where our valuations are where multiples are. We think we'll be in a position to move if and when opportunities present themselves. But no, it remains a big priority and we're focused on finding good opportunities to transact in 2023.

是的，這對我們來說仍然是一個有意義的重點領域，一個重中之重。我們的機會管道是可靠的——我花了相當多的時間和肖恩一起，他為我們領導我們的併購戰略，與潛在目標進行對話，並建立關係，使我們能夠在事情成熟時迅速採取行動。所以我們仍然專注於它。我們認為賣家正在適應市場環境的新常態，我們希望被視為首選合作夥伴，因為他們對我們的估值倍數感到更加滿意。我們認為，如果機會來臨時，我們可以採取行動。但不，它仍然是重中之重，我們專注於尋找在 2023 年進行交易的好機會。

There are no further questions at this time. I would like to turn the floor back over to Alexandra for closing comments.

目前沒有其他問題。我想將發言權轉回給 Alexandra 以發表結束評論。

Thank you, operator, and thank you to everyone that joined us on the call today. We appreciate your engagement and your questions. Our IR team will be available to assist you should you have any questions. We look forward to speaking with you next quarter. That concludes our call. You may now disconnect.

謝謝接線員，也感謝今天加入我們電話會議的所有人。感謝您的參與和提問。如果您有任何問題，我們的 IR 團隊將隨時為您提供幫助。我們期待在下個季度與您交談。我們的通話到此結束。您現在可以斷開連接。

This conference is now completed. Thank you for your participation and have a great day.

本次會議現已圓滿結束。感謝您的參與，祝您有美好的一天。