Bluelinx Holdings Inc (BXC) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Bluelinx Holdings third quarter, 2024 earnings conference call. (Operator Instructions) today's call is being recorded. We will begin with opening remarks and introductions.

女士們、先生們，感謝你們的支持並歡迎參加 Bluelinx Holdings 2024 年第三季財報電話會議。 （接線員指示）今天的通話正在錄音。我們將從開場白和介紹開始。

At this time I would like to turn the conference over to your host, Investor Relations Officer, Tom Morabito. Please go ahead.

現在我想把會議交給主持人投資者關係官湯姆莫拉比托 (Tom Morabito)。請繼續。

Thank you, operator, and welcome to the Bluelinx third quarter, 2024 earnings call. Joining me on today's call are Shyam Reddy, our President and Chief Executive Officer and Andy Wamser, our Chief Financial Officer and treasurer. At the end of today's prepared remarks, we'll take questions.

謝謝營運商，歡迎參加 Bluelinx 2024 年第三季財報電話會議。與我一起參加今天電話會議的有我們的總裁兼執行長 Shyam Reddy 和我們的財務長兼財務主管 Andy Wamser。在今天準備好的發言結束後，我們將回答問題。

Our third quarter news release and form 10-Q were issued yesterday after the close of the market along with our webcast presentation and these items are available in the investors section of our website bluelinkscode.com. We encourage you to follow along with the detailed information on the slides during the webcast.

我們的第三季新聞稿和 10-Q 表格在昨天市場收盤後連同我們的網路廣播演示一起發布，這些內容可在我們網站 bluelinkscode.com 的投資者部分取得。我們鼓勵您在網路廣播期間關注幻燈片上的詳細資訊。

Today's discussion contains forward-looking statements actual results may differ significantly from these forward-looking statements due to various risks and uncertainties including the risks described in our most recent sec filings.

今天的討論包含前瞻性陳述，由於各種風險和不確定性，包括我們最近的 SEC 文件中描述的風險，實際結果可能與這些前瞻性陳述有顯著差異。

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 measures can be found in the appendix of our presentation.

今天的演示包括某些非公認會計原則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。您可以在我們簡報的附錄中找到最接近的 GAAP 財務指標的調整表。

Now I'll turn it over to Shyam.

現在我將把它交給Shyam。

Thanks Tom and good morning, everyone. Our third quarter, 2024 results demonstrated solid gross margins of over 19% in our specialty products business and 11% for structural products, despite the impact of continued price deflation.

謝謝湯姆，大家早安。儘管受到持續價格通貨緊縮的影響，我們 2024 年第三季的業績顯示，我們的特種產品業務的毛利率超過 19%，結構產品的毛利率為 11%。

We partially offset this deflation in both by driving volume growth in key specialty product categories such as millwork and engineered wood products, as well as structural lumber and panels. I'm very pleased with the entire blue links team for their continued hard work and dedication to deliver these results despite the difficult deflationary pricing environment.

我們透過推動木製品和工程木製品以及結構木材和板材等關鍵特種產品類別的銷售成長，部分抵銷了通貨緊縮的影響。我對整個 Blue Links 團隊感到非常滿意，儘管面臨通貨緊縮的定價環境，他們仍然堅持不懈地努力工作並致力於取得這些成果。

We remain focused on growing our key specialty product categories at a higher rate than our structural product business so that our product mix shifts over the next several years. We also continue to execute successfully on our local and national market share gain strategies as seen by our multi family growth, expansion of product lines with key national accounts.

我們仍然專注於以高於結構產品業務的速度成長我們的關鍵特種產品類別，以便我們的產品結構在未來幾年內發生變化。我們也繼續成功執行我們的本地和全國市場份額增益策略，從我們的多戶型成長、擴大具有重要國民帳戶的產品線可以看出。

Our expansion of branded product lines into new geographic markets and launches of new product lines, among others. Our digital transformation efforts are moving forward on schedule with phase one on track to be completed by Q3 2025.

我們將品牌產品線擴展到新的地理市場並推出新產品線等。我們的數位轉型工作正按計畫推進，第一階段預計於 2025 年第三季完成。

We believe that subsequent phases will further enhance our operational and commercial capabilities and we anticipate that our continued focus on modernizing the business with new technology will ultimately enable us to differentiate ourselves in the marketplace. So that we can accelerate our profitable sales growth and operational excellence initiatives.

我們相信，後續階段將進一步增強我們的營運和商業能力，我們預計，我們繼續專注於利用新技術實現業務現代化，最終將使我們能夠在市場上脫穎而出。這樣我們就可以加速我們的獲利性銷售成長和卓越營運計劃。

We also continue to explore and evaluate greenfield and M&A opportunities to expand our geographic reach and to support our specialty product sales growth initiatives. The first greenfield will be announced by the end of this year.

我們也繼續探索和評估綠地和併購機會，以擴大我們的地理覆蓋範圍並支持我們的特色產品銷售成長計​​劃。第一個綠地將於今年底宣布。

Before turning to our third quarter results. I want to briefly address the effects of hurricanes, Helene, and Milton on our facilities. Our most impacted location was in Irwin, Tennessee, which is on the Tennessee North Carolina border. An area hit hard by Helene.

在轉向我們的第三季業績之前。我想簡單談談颶風、海倫和米爾頓對我們設施的影響。我們受影響最嚴重的地點是田納西州歐文，位於田納西州北卡羅來納州邊境。受海倫重創的地區。

Most importantly, our employees and their families are safe and we continue to appreciate their relentless dedication to our suppliers, customers each other and their communities.

最重要的是，我們的員工及其家人是安全的，我們繼續感謝他們對我們的供應商、客戶彼此及其社區的不懈奉獻。

The damage to the distribution operations was significant and the financial impact will largely be covered by insurance which Andy, will speak to in a moment. We are absolutely committed to rebuilding in Irwin, and we expect this distribution center to be up and running later in 2025.

分銷業務受到的損害非常嚴重，財務影響將主要由保險承擔，安迪稍後將談到這一點。我們絕對致力於在歐文進行重建，我們預計該配送中心將於 2025 年稍後投入運作。

In the meantime, we are servicing all of our customers by leveraging nearby distribution centers. In terms of hurricane Milton, our Tampa and Lakeland locations were in the path of the storm but were impacted only for a week. They're fully operational along with all other branches in Florida.

同時，我們利用附近的配送中心為所有客戶提供服務。就颶風米爾頓而言，我們的坦帕和萊克蘭地點位於風暴路徑上，但僅受到一周的影響。他們與佛羅裡達州的所有其他分支機構一起全面運作。

Now turning to our third quarter results, we generated net sales of $747 million in adjusted EBITDA $36.6 million for a 4.9% adjusted EBITDA margin. Adjusted net income was $16.7 million or $1.95 per share.

現在來看第三季的業績，我們的淨銷售額為 7.47 億美元，調整後 EBITDA 為 3,660 萬美元，調整後 EBITDA 利潤率為 4.9%。調整後淨利為 1,670 萬美元，即每股 1.95 美元。

Specialty products accounted for approximately 70% of net sales and about 80% of gross profit for the third quarter. Specialty product revenues declined 7% year-over-year due to continued price deflation versus the prior year.

第三季特種產品約佔淨銷售額的70%，約佔毛利的80%。由於價格與前一年相比持續下降，特種產品收入年減 7%。

Price deflation has persisted longer than we anticipated due to slower demand related to the soft housing recovery combined with excess manufacturing capacity both against the backdrop of a very competitive environment. However, while we still expect to see a year-over-year improvement in pricing in 2025 as the market recovers, we will believe it will likely be in the back half of the year.

價格通貨緊縮持續的時間比我們預期的要長，原因是房地產復甦疲軟導致需求放緩，加上在競爭激烈的環境下製造產能過剩。然而，儘管我們仍預計隨著市場復甦，2025 年定價將比去年同期改善，但我們相信這可能會在今年下半年。

As I mentioned earlier, we drove solid volume growth in key specialty product categories such as millwork and engineered wood products. We also delivered solid gross margin performance of 19.4% in specialty products which was above our expected range.

正如我之前提到的，我們推動了木製品和工程木製品等關鍵特種產品類別的銷售穩定成長。我們也在特種產品領域實現了 19.4% 的穩健毛利率表現，高於我們的預期範圍。

Although our specialty margins were partially due to the tariff benefit, our focus on business excellence continues to deliver solid specialty gross margin performance quarter after quarter. Our disciplined approach positions us very well for the housing and building products market recovery that has yet to come.

儘管我們的特種產品利潤率部分歸因於關稅優惠，但我們對卓越業務的關注繼續在每個季度提供穩定的特種產品毛利率表現。我們嚴格的方法使我們能夠很好地應對尚未到來的住房和建築產品市場的復甦。

Although structural product revenues declined 9% due to significant price deflation in lumber and panels, we drove positive volume growth across the board. As Andy, will highlight for the quarter, average lumber and panel prices for the industry were down 12% and 19% year over year respectively.

儘管由於木材和板材價格大幅下跌，結構性產品收入下降了 9%，但我們全面推動了銷售的正成長。正如 Andy 將在本季強調的那樣，該行業的平均木材和板材價格比去年同期分別下降了 12% 和 19%。

Regardless we once again leveraged our strategic and disciplined approach to inventory management and our centers of business excellence to deliver strong 11% gross margins for structural products on positive volume growth.

不管怎樣，我們再次利用我們的策略性和嚴格的庫存管理方法以及我們的卓越業務中心，在銷量正增長的情況下，為結構性產品帶來了 11% 的強勁毛利率。

Lastly, on the quarter, our financial position remains strong and our significant liquidity leaves us well positioned to achieve our vision, execute on our profitable sales growth strategy and take advantage of share gain opportunities as the market rebounds.

最後，在本季度，我們的財務狀況依然強勁，大量的流動性使我們能夠很好地實現我們的願景，執行我們的獲利銷售成長策略，並在市場反彈時利用份額成長機會。

We also continue to have flexibility to return capital to shareholders. During the third quarter, we repurchased $15 million in shares, bringing the total amount repurchased to over $138 million since the beginning of 2022. Once again, demonstrating our commitment to returning capital to shareholders.

我們也持續靈活地向股東返還資本。第三季度，我們回購了 1,500 萬美元的股票，使 2022 年初以來回購總額超過 1.38 億美元。再次體現了我們向股東返還資本的承諾。

Now let's turn to our perspective on the broader housing and building products market. Earlier this year, industry sources indicated a renewed sense of optimism for the overall market, especially for the second half of 2024.

現在讓我們談談對更廣泛的住房和建築產品市場的看法。今年早些時候，業內人士表示對整個市場重新抱持樂觀態度，尤其是 2024 年下半年。

Since then, however, low existing home turnover and home affordability issues among other factors anchored the housing market and kept it for moving forward into recovery mode. Of course, one of the critical factors standing in the way of a start to the housing recovery is the Federal Reserve's positioning regarding rate cuts.

然而，自此之後，現房成交量低和住房負擔能力問題等因素穩定了房地產市場，並使其繼續進入復甦模式。當然，阻礙房地產復甦的關鍵因素之一是聯準會關於降息的立場。

Partially fueled by the recent rate cuts from the federal reserve mortgage rates are currently above 6.5%. Although they are lower than the 8% peak last year, they are still above the 20-year average of about 5%. It's also important to note that the federal reserve interest rate cuts do not necessarily result in lower mortgage rates.

部分原因是近期聯準會降息，目前抵押貸款利率高於6.5%。儘管低於去年8%的峰值，但仍高於約5%的20年平均值。還需要注意的是，聯準會降息並不一定會導致抵押貸款利率下降。

In fact, since the federal reserve cut rates on September 18, mortgage rates have actually increased, moving from just below 6% to once again now being above 6.5%. Rate cuts are merely the first domino to fall in the cascade of market forces that need to materialize to drive housing starts and repair and remodel activity.

事實上，自聯準會9月18日降息以來，抵押貸款利率實際上有所上升，從略低於6%升至目前再次高於6.5%。降息只是推動住房開工、維修和改造活動所需的一系列市場力量中倒下的第一張骨牌。

For example, many homeowners are currently in low-interest rate mortgages. So, although we expect these initial interest rate cuts to help kick start the housing recovery, we believe that sustained reductions in interest rates over time are necessary to bring mortgage rates down to the long term averages and continue the housing recovery over the coming years.

例如，許多房主目前正在申請低利率抵押貸款。因此，儘管我們預計這些初步降息將有助於啟動房地產復甦，但我們認為，隨著時間的推移，利率的持續降低對於將抵押貸款利率降至長期平均水平並在未來幾年繼續房地產復甦是必要的。

Stated another way, closing the GAAP between homeowners existing mortgage rates and what's currently available in the market will be key to sustaining the housing recovery after it starts, which we believe won't occur until the back half of 2025.

換句話說，關閉房主現有抵押貸款利率與市場上現有抵押貸款利率之間的公認會計準則將是維持房地產復甦開始後的關鍵，我們認為這種情況要到2025 年下半年才會發生。

The US housing market remains volatile as reflected by September total housing starts coming in at an adjusted annual rate of $1.35 million, down 0.5% from August and down 0.7% year over year. Seasonally adjusted single-family housing starts increased 2.7% from August and increased 5.5% year over year.

美國房地產市場依然波動，9 月新屋開工總額調整後年率為 135 萬美元，比 8 月下降 0.5%，年減 0.7%。經季節性調整的單戶住宅開工量較 8 月成長 2.7%，年增 5.5%。

Large multi family starts were down 4.5% from August and down 15.7% from September 2023. In addition, builder confidence was 43 in October up three points year-over-year and up from 41 in September 2024, for the second month in a row after declining over the previous four months. While there was a slight improvement, it is still down for 51 in the March, April time frame which continues to reflect the volatile and uncertain market conditions.

大型多戶住宅開工量較 8 月下降 4.5%，較 2023 年 9 月下降 15.7%。此外，10 月建築商信心指數為 43，年比上升 3 個百分點，較 2024 年 9 月的 41 有所上升，繼前四個月下降後連續第二個月上升。雖然略有改善，但在 3 月和 4 月期間仍下降 51，這繼續反映了市場狀況的波動和不確定性。

We're currently in looking at the components present sales conditions was 47 up from 46. Last October expected sales in the next six months was 57 up from 44 last October, and traffic of prospective buyers was 29 up from 26 last October. Repair and remodel spending continues to be lower than the elevated levels of 2022 and 2023.

我們目前正在研究的組件目前的銷售狀況從 46 增加到 47。去年10月，預計未來六個月的銷售量為57套，高於去年10月的44套，潛在買家流量為29套，高於去年10月的26套。維修和改造支出持續低於 2022 年和 2023 年的較高水準。

Years during which pull forward an expansive R&R occurred during pandemic related conditions as people spent more time in their homes. Also as interest rate increases, impacts began accelerating in 2023 existing home sales sank to their lowest levels in 30 years. A trend that has continued into 2024.

在與大流行相關的情況下，人們在家中度過了更多的時間，從而導致了廣泛的休息和康復。此外，隨著利率上升，影響在 2023 年開始加速，現有房屋銷售跌至 30 年來的最低水準。這一趨勢一直持續到 2024 年。

As a result, a significant amount of repair and remodel activity that occurs when families sell their homes and buy new homes isn't happening due to current week sales velocity dynamics, for the first eight months of 2024. The turnover rate for homes is only 2.5%. The lowest level of those 30 years and new listings are at their lowest levels in at least a decade.

因此，由於 2024 年前 8 個月的本週銷售速度動態，家庭出售房屋和購買新房子時發生的大量維修和改造活動不會發生。房屋的周轉率僅2.5%。這是這 30 年來的最低水平，新上市數量也處於至少十年來的最低水平。

Despite the increases in housing starts on a sequential and year-over-year basis, we continue to see large public builders gaining a greater share of single family housing starts in a high interest rate environment because they're using their size, their scale and their balance sheet to buy down mortgage rates. Offer more attractive deals to consumers and by directly for manufacturers to support their production schedules.

儘管房屋開工量連續逐年增加，但我們仍然看到大型公共建築商在高利率環境下獲得了更大比例的單戶住宅開工量，因為他們利用其規模、規模和他們的資產負債表是為了降低抵押貸款利率。為消費者提供更具吸引力的優惠，並直接為製造商提供支援他們的生產計劃。

Two step distributors like Bluelinx however, tend to correlate more closely with smaller and custom home builder activity and do not participate as much in the large production builder market. We expect a single family start trend to continue for the remainder of 2024.

然而，像 Bluelinx 這樣的兩步驟經銷商往往與小型客製化住宅建築商活動更緊密地相關，並且不太參與大型生產建築商市場。我們預計單戶家庭的啟動趨勢將在 2024 年剩餘時間內持續下去。

However, as mortgage rates come down and get closer to the 20 year averages, we anticipate that more small and custom home builders will re-enter the housing market which will help fuel our business.

然而，隨著抵押貸款利率下降並接近 20 年平均水平，我們預計更多小型和客製化住宅建築商將重新進入房地產市場，這將有助於推動我們的業務。

Although the near term outlook remains uncertain, we continue to believe in the long term prospects of the housing and building products sector as many of you already know, 1.8 million homes needs to be built every year for the next 10 years to meet the housing demand, which doesn't even include any forecasting tied to expected immigration.

儘管近期前景仍不確定，但我們仍然相信住房和建築產品行業的長期前景，正如許多人已經知道的那樣，未來 10 年每年需要建造 180 萬套住房才能滿足住房需求，其中甚至不包括任何與預期移民相關的預測。

This considerable shortage of homes on top of supportive demographic shifts, aced housing stock, necessary repair and remodel activity and high levels of home equity should continue to benefit the building products industry and Bluelinx's in the years to come as interest rates and home prices continue to come down.

隨著利率和房價持續走高，除了支持性的人口變化、大量的住房存量、必要的維修和改造活動以及高水平的房屋淨值外，住房的嚴重短缺應該會在未來幾年繼續使建築產品行業和Bluelinx 受益。

We took all of these macro economic drivers into account when we developed our share game strategy to drive profitable sales growth across the enterprise which is already starting to bear fruit. Focus and clarity will continue to be critical of the successful execution of our strategy.

當我們制定共享遊戲策略以推動整個企業的獲利銷售成長時，我們考慮了所有這些宏觀經濟驅動因素，該策略已經開始取得成果。重點和清晰度對於成功執行我們的策略仍然至關重要。

Now I'll turn it over to Andy, who will provide more details on our financial results and our capital structure.

現在我將把它交給安迪，他將提供有關我們的財務表現和資本結構的更多詳細資訊。

Thanks Shyam, and good morning, everyone. Let's first go through the consolidated highlights for the quarter. Overall both our specialty and structural products businesses delivered strong gross margins. Despite the impact of price deflation, both businesses experienced solid increases in volume but were offset by price declines.

謝謝希亞姆，大家早安。讓我們先回顧一下本季的綜合亮點。整體而言，我們的特殊產品和結構產品業務都實現了強勁的毛利率。儘管受到價格通貨緊縮的影響，這兩項業務的銷售量均大幅成長，但被價格下跌所抵銷。

Net sales were $747 million down 8% year over year. Total gross profit was $126 million and gross margin was 16.8%, down 40 basis points from the prior period.

淨銷售額為 7.47 億美元，年減 8%。總毛利為1.26億美元，毛利率為16.8%，較上期下降40個基點。

As we've noted in previous calls, our first and second quarter, 2024 results for specialty products reflected an estimated net benefit for import duty related matters incurred in prior periods. During the third quarter of 2024, the estimate was updated resulting in additional net benefit of $3.5 million.

正如我們在先前的電話會議中指出的，我們的 2024 年第一季和第二季特種產品業績反映了前期發生的進口關稅相關事項的估計淨收益。2024 年第三季度，該估算得到更新，帶來 350 萬美元的額外淨收益。

More details on these matters are available in our 10-Q. SG&A was $92 million up $1 million from last year's third quarter. The increase was mainly due to higher technology expenses associated with our digital transformation, partially offset by lower fleet related logistics costs.

有關這些問題的更多詳細信息，請參閱我們的 10-Q。SG&A 為 9,200 萬美元，比去年第三季增加 100 萬美元。這一成長主要是由於與我們的數位轉型相關的技術費用增加，但部分被車隊相關物流成本的降低所抵消。

Net income was $16 million or $1.87 per share. During the quarter, we recognized a $2.2 million adjustment of the settlement charge recorded in the fourth quarter of 2023 to settle our defined benefit pension plan.

淨利潤為 1600 萬美元，即每股 1.87 美元。在本季度，我們確認對 2023 年第四季記錄的結算費用進行了 220 萬美元的調整，以結算我們的固定福利退休金計畫。

This was partially offset by the estimated net losses at our Irwin Tennessee branch that was damaged by hurricane Helen, that Shyam mentioned earlier. Adjusted net income was $16.7 million or $1.95 per share, tax expense for the third quarter was $5.6 million or 26%.

這部分被我們田納西州歐文分公司的估計淨損失所抵消，該分公司因夏姆之前提到的海倫颶風而受損。調整後淨利為 1,670 萬美元，即每股 1.95 美元，第三季稅費為 560 萬美元，即 26%。

For the fourth quarter of 2024 we anticipate our tax rate to be in the range of 24% to 28%. Adjusted EBITA was $36.6 million or 4.9% of net sales and includes the favorable duty related matters. Not including these matters adjusted EBITA would have been $33 million or 4.4% of net sales.

我們預計 2024 年第四季的稅率將在 24% 至 28% 之間。調整後的 EBITA 為 3,660 萬美元，佔淨銷售額的 4.9%，其中包括優惠關稅相關事項。不包括這些事項，調整後的 EBITA 將為 3,300 萬美元，即淨銷售額的 4.4%。

Turning now to third quarter results for specialty products, net sales were $519 million down 7% year over year. This decline was driven by price deflation across specialty products. As Shyam mentioned, given current market conditions, we expect to see improved pricing dynamics in 2025 but likely not until the second half of the year.

現在來看看特種產品第三季的業績，淨銷售額為 5.19 億美元，年減 7%。這一下降是由特種產品價格通貨緊縮所推動的。正如 Shyam 所提到的，鑑於當前的市場狀況，我們預計 2025 年定價動態將有所改善，但可能要到今年下半年才會出現。

Gross profit from specialty product sales was $100 million down 9% year to year. Specialty gross margin was 19.4% down 40 basis points from last year primarily due to price deflation, largely offset by the duty related items and increases in volume.

特色產品銷售毛利為1億美元，較去年同期下降9%。特種毛利率為 19.4%，比去年下降 40 個基點，主要是由於價格通貨緊縮，但很大程度上被關稅相關項目和銷售增加所抵消。

Not including this benefit. Specialty gross margins were still solid at 18.7% in the third quarter in line with our expectations. Through the first four weeks of Q4 specialty product gross margin was in the range of 18% to 19% with sequential daily sales volume slightly lower when compared to the third quarter of 2024 and higher than the equivalent period last year.

不包括這個福利。第三季特種產品毛利率仍穩定在 18.7%，符合我們的預期。第四季的前四個星期，特色產品毛利率在 18% 至 19% 之間，較上季銷量略低於 2024 年第三季度，但高於去年同期。

Now moving on to structural products, net sales were $228 million down 9% compared to the prior year period. This decrease was primarily due to lower lumber and panel pricing when compared to last year's levels.

現在轉向結構性產品，淨銷售額為 2.28 億美元，比去年同期下降 9%。這一下降主要是由於與去年的水平相比，木材和板材的價格較低。

Gross profit from structural products was $25 million. A decrease of 11% year-over-year and structural gross margin was 11% down 30 basis points from the same period last year.

結構性產品的毛利為 2500 萬美元。年減11%，結構性毛利率為11%，較去年同期下降30個基點。

Both benefited from a $2.4 million inventory write down at the end of the second quarter of 2024 due to market conditions in the panel and lumber markets which resulted in lower cost of products sold in the third quarter when the associated inventory was sold.

由於面板和木材市場的市場狀況，兩家公司都受益於 2024 年第二季末 240 萬美元的庫存減記，導致第三季銷售相關庫存時銷售產品的成本降低。

In the third quarter of 2024 average lumber prices were about $385 per 1,000 board feet and panel prices were about $515 per 1,000 square feet. A 12% decrease and 19% decrease respectively compared to the averages in the third quarter of last year.

2024 年第三季度，木材平均價格約為每 1,000 板英尺 385 美元，板材價格約為每 1,000 平方英尺 515 美元。與去年第三季平均值相比分別下降12%和19%。

Sequentially comparing the third quarter of 2024 with the second quarter, lumber prices were roughly flat, and panel prices were down 14%. Through the first four weeks of Q4 structural products gross margin was in the range of 9% to 10% with daily sales volumes improving slightly from the third quarter.

依序比較2024年第三季和第二季度，木材價格大致持平，板材價格下降14%。在第四季的前四個星期，結構性產品的毛利率在 9% 到 10% 之間，每日銷量較第三季略有改善。

Looking now at our balance sheet, our liquidity remains excellent due to the strong execution of our strategic initiatives and effective management of working capital. At the end of the quarter, cash on hand was $526 million an increase of $35 million from Q2 largely due to normal seasonal patterns and working capital.

現在來看看我們的資產負債表，由於我們策略性舉措的強有力執行和營運資金的有效管理，我們的流動性仍然出色。截至本季末，手頭現金為 5.26 億美元，比第二季增加 3,500 萬美元，這主要是由於正常的季節性模式和營運資金。

When considering our cash on hand and undrawn revolver capacity of $346 million available liquidity was approximately $873 million at the end of the quarter. Total debt excluding our real property financing leases was $351 million and net debt was a negative $176 million. Our net leverage ratio was a negative 1.2 times given our positive net cash position and we have no material outstanding debt maturities until 2029.

考慮到我們的手頭現金和未提取的循環能力為 3.46 億美元，截至本季末，可用流動資金約為 8.73 億美元。不包括房地產融資租賃在內的總債務為 3.51 億美元，淨債務為負 1.76 億美元。鑑於我們的淨現金部位為正，我們的淨槓桿比率為負 1.2 倍，而且我們在 2029 年之前沒有重大未償債務到期。

Our balance sheet and liquidity remains strong. And when combined with our solid EBITDA generation, we are well positioned to support our strategic initiatives including our digital transformation efforts. These include investments in our highest return prospects such as organic and inorganic growth initiatives and opportunistic share purchases.

我們的資產負債表和流動性仍然強勁。與我們堅實的 EBITDA 世代結合，我們有能力支持我們的策略舉措，包括我們的數位轉型工作。其中包括對我們最高回報前景的投資，例如有機和無機成長計劃以及機會性股票購買。

Now moving on to working capital and free cash flow, during the third quarter we generated operating cash flow of $62 million and free cash flow of $54 million primarily driven by net income and improved working capital.

現在轉向營運資本和自由現金流，第三季我們產生了 6,200 萬美元的營運現金流和 5,400 萬美元的自由現金流，這主要是由淨利潤和營運資本改善推動的。

Turning now to capital allocation. During the quarter, we spent $8 million in CapEx, primarily tied to our digital investments and to improve our distribution facilities. For 2024 we expect capital investments to be slightly lower than the $40 million previously anticipated.

現在轉向資本配置。本季度，我們花費了 800 萬美元的資本支出，主要用於我們的數位投資和改善我們的分銷設施。我們預計 2024 年的資本投資將略低於先前預期的 4,000 萬美元。

The investments will continue to be focused on facility improvements, further upgrades to our fleet and the technology improvements previously discussed. As a reminder, our digital investments will also have at least a $5 million impact on operating expenses this year related to software licenses as well as increased headcount associated with the initiative.

投資將繼續集中在設施改進、機隊進一步升級以及先前討論的技術改進。提醒一下，我們的數位投資還將對今年與軟體許可相關的營運支出以及與該計劃相關的員工人數增加產生至少 500 萬美元的影響。

As Shyam mentioned during the third quarter, we repurchased $15 million of stock and we had $61 million of repurchases remaining at quarter end on our current share repurchase authorization. We are committed to our share repurchase efforts and plan to remain opportunistic in the market.

正如 Shyam 在第三季度提到的那樣，我們回購了 1500 萬美元的股票，根據當前的股票回購授權，截至季度末，我們還剩 6100 萬美元的回購金額。我們致力於股票回購工作，並計劃在市場上保持機會主義。

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, expand our geographic footprint and pursue a disciplined M&A strategy as well as return capital to shareholders.

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，使我們能夠在經濟週期中投資我們的業務，擴大我們的地理足跡，追求嚴格的併購策略以及向股東返還資本。

We also plan to maintain a long term net leverage ratio of two times or less overall. We are pleased with our volumes and growth margins in both specialty and structural products. Price deflation continued to impact results, and we are optimistic that pricing will improve along with the overall housing environment in 2025. Our strong balance sheet and our liquidity positions us well to execute on our strategy and continue to opportunistically return capital to shareholders.

我們也計劃將長期淨槓桿率整體維持在兩倍或更低。我們對特種產品和結構產品的銷售和成長利潤感到滿意。價格通貨緊縮持續影響業績，我們樂觀地認為 2025 年價格將隨著整體住房環境的改善而改善。我們強大的資產負債表和流動性使我們能夠很好地執行我們的策略，並繼續機會主義地向股東返還資本。

Operator, we will now take questions.

接線員，我們現在開始提問。

(Operator Instructions)

（操作員說明）

Jeffrey Stevenson, Loop Capital.

傑弗裡·史蒂文森，Loop Capital。

Hi, thanks for taking my questions today. And congrats on the nice quarter. So the positive volume growth in your specialty products business was encouraging to see during the quarter and just wondered what the primary driver of the volume improvement in categories such as EWP and Millwork was that you cited?

您好，感謝您今天回答我的問題。恭喜這個美好的季度。因此，本季貴公司特種產品業務銷售的積極成長令人鼓舞，想知道您提到的 EWP 和 Millwork 等類別銷售成長的主要驅動力是什麼？

Was it, you know, healthy levels of new housing completion, seasonality benefits or something else that, that you would say?

你會說，是新住房竣工的健康水準、季節性福利還是其他？

Yeah, thanks for the question, Jeff. So we have a strong focus and as I mentioned earlier around clarity along with that focus on our share game strategy, which really is tied to national accounts and multi family and driving product line expansion along with branded products and geographic, new geographic territories along with launches of new products.

是的，謝謝你的提問，傑夫。因此，我們有一個強烈的重點，正如我之前提到的，圍繞清晰度以及對我們共享遊戲策略的關注，這實際上與國民帳戶和多家庭聯繫在一起，並推動產品線擴張以及品牌產品和地理、新地理區域以及新產品的推出。

As it relates to EWP and millwork. As we think about those channels, whether it be multi family or national accounts and in particular, those accounts that allow us to truly take advantage of our scale.

因為它與 EWP 和木製品有關。當我們思考這些管道時，無論是多家庭帳戶還是國民帳戶，特別是那些使我們能夠真正利用我們的規模優勢的帳戶。

We can, despite the macro economic forces or the low demand and excess supply, we can absolutely drive incremental or better than market volumes with respect to EWP and no work. Because on a year-over-year basis, that focus, for instance, on multi family is allowing us to improve volumes in those two categories. There's also some seasonal benefit as well.

儘管存在宏觀經濟力量或需求低迷和供應過剩的情況，我們絕對可以推動增量或優於 EWP 的市場量，而無需任何工作。因為與去年同期相比，對多戶住宅等的關注使我們能夠提高這兩個類別的銷售量。還有一些季節性的好處。

Got it. That's great to hear. And then I was just wondering if you've seen any sequential moderation of price declines and you know, these key specialty categories, EWP and millwork, which have seen, you know, elevated kind of year over year deflation this year.

知道了。很高興聽到這個消息。然後我只是想知道您是否看到價格下跌的連續放緩，您知道，這些關鍵的專業類別，EWP 和木製品，您知道，今年通貨緊縮程度逐年上升。

And do you believe that pricing in these categories could stabilize moving forward? Especially if we begin to see some improvement in single family housing starts in the 2025?

您認為這些類別的定價可以穩定向前發展嗎？特別是如果我們在 2025 年開始看到單戶住宅開工情況有所改善的話？

Yeah, Jeff, great question. What I would say is as we think about sequentially for pricing. You know, in specialty, we're seeing an improvement in the first four weeks of Q4. So it's up low, single digit and that's what gives us the confidence that when we talk about price improvement in the second half of next year.

是的，傑夫，好問題。我想說的是我們按順序考慮定價。您知道，在專業領域，我們看到第四季的前四週有所改善。因此，它的漲幅較低，為個位數，這給了我們信心，當我們談論明年下半年的價格改善時。

You know, what gives us that confidence we probably in the back half of next year, we'll see the year of your improvement in pricing, but yeah, a slight sequential improvement which is great to see.

你知道，是什麼讓我們有信心，我們可能在明年下半年，我們會看到你的定價有所改善，但是，是的，輕微的連續改善，這是很高興看到的。

That's great and then, obviously a rebound and structural margins as you know, lumber and OSB prices rebounded off July lows do you believe that, industry supply demand dynamics, have improved in both categories over the last 90 days.

這很好，然後，顯然反彈和結構性利潤，如您所知，木材和定向刨花板價格從7 月低點反彈，您是否相信，行業供應需求動態在過去90 天內在這兩個類別中都有所改善。

And if we do start to see some improvement on the single family side, do you think prices could, continue to move higher, moving forward? Just giving their, at or below normalized levels right now.

如果我們確實開始看到單戶住宅方面有所改善，您認為價格會繼續走高嗎？現在只是給出處於或低於正常水平的水平。

Yeah. So what I would say is if we like a reminder and second quarter, there was massive deflation that we saw in the structural market where pin on pricing was down pretty meaningfully and as a result, the channel was pretty heavy as it relates to the inventory. And so second quarter, I'd say a structural margins were artificially low because we had a reserve taken. So it was about 7.9% and then in that reserve flipped in Q3 and was 11.

是的。所以我想說的是，如果我們喜歡提醒的話，第二季度，我們在結構性市場中看到了大規模的通貨緊縮，定價大幅下降，因此，與庫存相關的管道相當沉重。所以第二季度，我想說結構性利潤率被人為地壓低，因為我們採取了儲備金。因此，該比例約為 7.9%，然後該儲備金在第三季發生翻轉，為 11%。

But if we think about for the year to for year-to-date, it's about 9.8%. So, what that means is that we saw probably an inbound probably in the second quarter with inventory and then probably more of a normalization, I'd say with inventory here in the third quarter.

但如果我們考慮今年至今的情況，數字約為 9.8%。因此，這意味著我們可能會在第二季看到庫存的流入，然後可能會更加正常化，我想說的是第三季的庫存。

So we feel good about where manufacturers are in the supply and where the channels are and you know. As a reminder for us, we always keep low, inventory in terms of a low 20-day supply of structural we're not caught off sides, but we feel good about where the industry sits right now.

因此，我們對供應商在哪裡以及通路在哪裡感到滿意，你知道的。提醒我們的是，我們始終保持低庫存，就 20 天結構性供應而言，我們並沒有陷入困境，但我們對行業目前的狀況感到滿意。

Great. Thank you.

偉大的。謝謝。

Greg Palm, Craig Hallum Capital Group.

格雷格·帕爾姆，克雷格·哈勒姆資本集團。

Yeah, thanks. Good morning, everybody. I was wondering if you could maybe just update us on the competitive landscape a bit. I know you briefly mentioned share games, but you know, what are you seeing out in the market?

是的，謝謝。大家早安。我想知道您是否可以向我們介紹一下競爭格局的最新情況。我知道您簡單地提到了共享遊戲，但您知道，您在市場上看到了什麼？

What are you seeing from competitors? You know, maybe areas specifically where you're seeing some share games and I guess kind of going forward if there are areas that you're most hopeful for in terms of potential share games going forward, that'd be helpful as well.

您從競爭對手身上看到了什麼？你知道，也許在你看到一些分享遊戲的特定領域，我想如果你最希望在未來的潛在分享遊戲領域發展，那也會有幫助。

Yes. So I think, all the regions we have, the east has been pretty solid. Some markets have been hit harder than others i.e. the west and the south, all of which I think everybody in building products is experiencing.

是的。所以我認為，我們擁有的所有地區，東部都相當穩固。一些市場受到的打擊比其他市場更嚴重，例如西部和南部，我認為所有從事建築產品的人都在經歷這些。

But at the end of the day, as we think about what we're focused on whether it's take, you know, multi family commercial and really driving those sales or going into the national accounts and really leveraging our scale to help them or support their scalable sales activities is what's helping us manage through the headwinds and pick up incremental business another differentiator I would say is.

但歸根結底，當我們思考我們的重點是什麼時，您知道，是採取多戶商業並真正推動這些銷售，還是進入國民賬戶並真正利用我們的規模來幫助他們或支持他們我想說的是，可擴展的銷售活動幫助我們克服逆風並獲得增量業務，這是另一個差異化因素。

For example, in millwork and EWP, despite the deflationary impacts, we're seeing by having private label products, we can off, we can actually weather the storms in a more competitive manner than I think some of the other players in our space and as a result, use that to convert business and pick up share.

例如，在木製品和EWP 領域，儘管存在通貨緊縮的影響，但我們看到，透過擁有自有品牌產品，我們實際上可以比我認為我們領域的其他一些參與者更具競爭力的方式渡過難關。

There are also some other strategies that we've employed, whether it be in the context of pull through business with builders and how they go about managing through their inventory and cycling through housing completions as it relates to our, how we develop programs in the context of pricing and rebates that allow us to give us a competitive advantage in order to in terms of gaining share.

我們還採用了一些其他策略，無論是在與建築商開展業務的背景下，還是他們如何管理庫存和循環房屋竣工，因為這關係到我們如何在房地產領域開發項目 定價和回扣的背景使我們能夠在獲得份額方面獲得競爭優勢。

Another thing that we're doing to combat these headwinds is just leaning into direct sales. Although the margins are lower, there's obviously zero to low cost to serve. And so its bit creative. So long as the other elements of our strategy are playing out which they are.

我們為應對這些逆風所做的另一件事就是轉向直銷。儘管利潤率較低，但服務成本顯然為零或較低。所以它有點創意。只要我們策略的其他要素發揮作用即可。

In terms of what I'm seeing in the market obviously, no matter which customer I talk to and whatever region I'm in. There's a general sense of uncertainty that continues, again until we have the sustained rate cuts, that will bring those mortgage rates down to the 20 year averages and then you start seeing the sales velocity with existing homes.

顯然，就我在市場上看到的情況而言，無論我與哪位客戶交談，無論我位於哪個地區。人們普遍存在一種不確定性，直到我們持續降息，這將使抵押貸款利率降至 20 年平均水平，然後你開始看到現有房屋的銷售速度。

Which we might be seeing some signs of life, but they're still at 30 year lows. There is a, again, there will be a, there is a general sense of uncertainty and there are no supply chain constraints as we all know, there's meaningful excess capacity in the market combined with the softness in the market. And so it's incumbent upon us to basically grab the levers at our disposal in order to drive those incremental sales and drive profitable sales.

我們可能會看到一些生命跡象，但仍處於 30 年來的最低水平。再次，將會有，存在普遍的不確定性，並且沒有眾所周知的供應鏈限制，市場上存在明顯的產能過剩，加上市場疲軟。因此，我們有責任基本上抓住我們可以使用的槓桿，以推動這些增量銷售並推動有利可圖的銷售。

Yeah, I mean, I know everybody's, kind of waiting on a move lower from rates and I know your business. So I guess two steppers specifically are maybe more exposed, but you know what happens if we don't get those rate reductions and housing market, sort of just, keeps chugging along doing what it's been doing, the big production builders keep taking share versus the smaller players.

是的，我的意思是，我知道每個人都在等待利率下調，我知道你們的事。因此，我想特別是兩個步進器可能會受到更多的影響，但你知道，如果我們不降低利率，而房地產市場，就像一直在做它一直在做的事情，那麼會發生什麼，大型生產建築商繼續佔據份額較小的玩家。

I mean, does that change your strategy at all, in terms of where you're focused on growth or allocating resources, etcetera?

我的意思是，這是否會改變您的策略，即您專注於成長或分配資源等方面？

Well, first, so I know we haven't talked about M&A and in greenfield, but of the two an area that we're focused on is greenfield. We have a robust pipeline of potential M&A deals. But just, given our multiple and where the, where that pricing is on those deals, we continue to believe that reinvesting in the business and returning capital to shareholders via share buybacks is a better play, makes more sense but on the greenfield side, we will be announcing one soon.

嗯，首先，我知道我們還沒有談論併購和綠地，但在這兩個領域中，我們專注的是綠地。我們擁有大量潛在併購交易。但是，考慮到我們的倍數以及這些交易的定價，我們仍然相信，對業務進行再投資並透過股票回購向股東返還資本是更好的選擇，更有意義，但在綠地方面，我們很快就會宣布一項。

And then we have a road map to enter into new markets and get closer to the customer that will help us grow the business. But if you take a step back and you look at the market dynamics, basically we need 1.8 million homes per year over the next decade in order to meet existing supply and forecast, which as I said earlier, doesn't even take into account immigration forecasting.

然後我們制定了進入新市場並更接近客戶的路線圖，這將有助於我們發展業務。但如果你退後一步，看看市場動態，基本上我們在未來十年每年需要 180 萬套住房，以滿足現有的供應和預測，正如我之前所說，這甚至沒有考慮到移民預測。

And the only way to build enough fast enough, quite frankly or even get through the dynamics of single family housing with respect to, you know, within current zoning requirements is to really lean into commercial and multi family, which is something that we're doing.

坦白說，在當前的分區要求範圍內，要建設得足夠快、足夠快，甚至克服單戶住宅動態的唯一方法就是真正傾向於商業和多戶住宅，這是我們正在做的事情。 。

We built up new capacity to support that business across the enterprise. And then at the same time as we think about it scale, how can we leverage the 60-distribution center footprint as it sits today, in order to provide, a consistent service offering across the entire 50 states.

我們建立了新的能力來支持整個企業的業務。然後，在我們考慮規模的同時，我們如何利用目前擁有 60 個配送中心的足跡，在整個 50 個州提供一致的服務。

And over time, we'll continue to greenfield. But if we can stay focused on these new channel opportunities that we haven't historically been focused on, then I think that we will continue to gain share no matter the headwinds.

隨著時間的推移，我們將繼續進行綠地開發。但如果我們能夠繼續關注這些我們歷史上從未關注過的新通路機會，那麼我認為，無論遇到什麼阻力，我們都會繼續獲得份額。

At the same time, the transactional business and really leaning into the knife fights that we're dealing with on a day-to-day basis, whether it be transactional or direct sales, all of which are even dot creative and clearly support the profitable sales strategy.

同時，交易業務真正傾向於我們日常處理的刀戰，無論是交易還是直接銷售，所有這些甚至都具有創意，並且明顯支持盈利銷售策略。

So even though some of the small and custom home builders are sitting on the sidelines today, through an all of the above approach via that, those points I made earlier around product expansion, geographic expansion, even within key suppliers, moving beyond what our historical skew up mix has been I mean, all of these things have really helped us gain more share.

因此，儘管今天一些小型客製化住宅建築商處於觀望狀態，但透過上述所有方法，我之前提出的關於產品擴張、地理擴張的觀點，甚至是在關鍵供應商內部的擴張，超越了我們的歷史範圍。我的意思是，傾斜混合一直是，所有這些事情確實幫助我們獲得了更多份額。

And we're very focused on these five key things, five or four or five key things combined with the channel approach. So that's how we will ultimately continue to gain share no matter the market headwinds in the and of course the underlying demographics, market dynamics support the long-term thesis.

我們非常關注這五個關鍵的事情，五個或四個或五個關鍵的事情與通路方法結合。因此，無論市場逆風如何，我們最終將繼續獲得份額，當然，潛在的人口統計、市場動態也支持長期論點。

Yeah, makes sense. All right, I appreciate all the insights. Thanks.

是的，有道理。好吧，我很欣賞所有的見解。謝謝。

Reuben Garner with The Benchmark Company.

魯本·加納 (Reuben Garner) 與 The Benchmark Company 合作。

Thank you. Good morning, everybody. Just to start well, a couple of clarification questions, the first is on the structural margin. So I think after last quarter, you said that the start of the third quarter margins were kind of in the 8% to 9% range and clearly, they came in much higher in that category. Was that and I think you also mentioned maybe a reversal of the hit you took in the second quarter.

謝謝。大家早安。首先，需要澄清幾個問題，第一個是結構性邊際問題。所以我認為在上個季度之後，您說第三季初的利潤率在 8% 到 9% 的範圍內，顯然，它們在該類別中的水平要高得多。我想你也提到了可能會扭轉你在第二季遭受的打擊。

Can you just talk about how that played out in the quarter, like the lumber just bottoming midway through the quarter allow for you to have above normal margins late in the quarter. And that's how you net to 11% or was there something one time in that In that 3Q number?

您能否談談本季的情況，例如木材在本季中途觸底，使您在本季末的利潤率高於正常水平。這就是你淨值達到 11% 的方式，或者在第三季的數字中是否有過一次這樣的情況？

Yeah, Ruben, what happened was, we took a reserve about a $2.5 million reserves, $2.4 million reserve in the second quarter and that's what brought our I would say our structural rates down to about 7.9%. What happened is as we sold that inventory in Q3, that reserve flipped.

是的，魯本，發生的事情是，我們在第二季度提取了約 250 萬美元的準備金，240 萬美元的準備金，這就是我們的結構性利率降至約 7.9% 的原因。發生的事情是，當我們在第三季出售庫存時，儲備金發生了翻轉。

And so the that goes to my point where even though, I would say on face value, it's 11%, in Q3 for structural margins, that a normalized rate would be more the year-to-date, which would be in the high 9%, like 9.8% which that 9% to 10%, which is right in line with our expectation for this few four, that 9% to 10%.

因此，這就是我的觀點，儘管從面值來看，第三季的結構性利潤率為 11%，但今年迄今的正常化利率將更高，將處於前 9 位。即9%到10%，這與我們對這四個國家的預期，即9%到10%是一致的。

Okay and do you feel like you've had to walk away from any business or leave any business out there on the structural side to maintain these kinds of margins, we'd heard in the quarter that things were fairly competitive. As lumber was bottoming out kind of middle way through the quarter.

好吧，你是否覺得你必須放棄任何業務或在結構方面留下任何業務才能維持這樣的利潤率，我們在本季度聽說情況相當有競爭力。由於木材在本季中期觸底。

You see that, yeah, I'll take the first part of that and then Andy will follow up. So look, I mean let's start with the, the underlying thesis, foundational approach we have, which is very principled around inventory management and so we manage very optimal levels of structural inventory across the enterprise.

你看，是的，我會先講第一部分，然後安迪會跟進。所以，我的意思是，讓我們從我們擁有的基本論點和基本方法開始，該方法在庫存管理方面非常有原則，因此我們在整個企業中管理非常理想的結構庫存水準。

And that in and of itself is what allows us to protect the balance sheet and maintain the margins we do. We don't walk away from business, but at the same time, we're not building it, so they will come.

這本身就是我們能夠保護資產負債表並維持利潤的原因。我們不會放棄業務，但同時我們也不會建設業務，所以他們會來。

And we do that in a very disciplined way with respect to every product category, with structural in particular, having heavy focus just in terms of turn days and days of inventory on hand, etcetera. And so, I would think about it from that perspective as opposed to walking away from business, but in no way, shape or form are we walking away from business.

我們對每個產品類別都以非常嚴格的方式做到這一點，特別是結構產品，重點關注週轉天數和現有庫存天數等。因此，我會從這個角度來思考它，而不是放棄業務，但無論如何，我們不會放棄業務。

We operate in the markets we have based on current competitive market dynamics and then manage through the inventory in a very responsible disciplined way that not only supports our customers, but it puts us in a position to maintain healthy structural margins which ultimately protect the balance sheet.

我們在基於當前競爭市場動態的市場中開展業務，然後以非常負責任、嚴格的方式管理庫存，這不僅支持我們的客戶，而且使我們能夠保持健康的結構性利潤，最終保護資產負債表。

Yeah, just to add to that, you know, as we talk about how in the commentary, net sales were down 9% and that includes price deflation of you know, 12% in lumber, 19% in panels. So as a result, I would almost say the opposite, we had a really high volume, I mean, so we were, high single digits in volume, you know, for the quarter and structural. So that clearly shows that we're not walking away.

是的，補充一點，你知道，正如我們在評論中談論的那樣，淨銷售額下降了 9%，其中包括你知道的價格通貨緊縮，木材下降 12%，面板下降 19%。因此，我幾乎想說相反的，我們的交易量非常高，我的意思是，所以我們的交易量很高，你知道，對於本季度和結構而言。這清楚地表明我們不會走開。

You know, we're just dealing with the deflationary issue, I'd say right now. But you know, volumes being up high single digits in that category was good result for the quarter.

我想說，你知道，我們現在正在處理通貨緊縮問題。但您知道，該類別的銷量高個位數成長是本季的良好結果。

Yeah, it really is and that was going to be my next question. So it sounds like on both sides of the business you had better than expected or better than market volume just to be clear, do you think some of this is kind of a recovery in your customers with the smaller builders and some of the R&R markets you're exposed to or do you feel that it's just the initiatives that you put in place to drive share game?

是的，確實如此，這將是我的下一個問題。因此，聽起來業務雙方的情況都好於預期或好於市場容量，只是需要澄清一下，您是否認為其中一些是您的客戶與小型建築商和一些 R&R 市場的復甦？是否認為這只是您為推動共享遊戲所採取的舉措？

You know, I would say, you know, obviously some of it may be tied to some back end seasonal adjustments. But for the most part, I believe it strongly correlates with the share game strategy. You know, as you think about the work we're doing to drive, let's say multi family commercial sales.

你知道，我想說，你知道，顯然其中一些可能與一些後端季節性調整有關。但在大多數情況下，我認為這與分享遊戲策略密切相關。你知道，當你想到我們正在做的工作來推動時，比方說多戶商業銷售。

And also even with respect to some of the direct, the strategic direct business we're doing with respect to certain channels that in and of itself supports a meaningful part of the structural volume growth. So the point is, the point being that despite whatever the market conditions are, as it relates to small and custom home builders being on the sidelines, and big builders picking up more market share.

即使對於一些直接的、策略性的直接業務，我們也在某些管道上開展業務，這些業務本身就支持了結構性銷售成長的重要部分。因此，重點是，無論市場狀況如何，小型和客製化住宅建築商都處於觀望狀態，而大型建築商則獲得了更多的市場份額。

They're still there are certain strategies we can employ, which we are doing in order to gain share, keep business service our customers, you know, and you combine that with our discipline or approach to inventory management, we're able to maintain margins and grow volume despite deflation.

我們仍然可以採用某些策略，我們這樣做是為了獲得份額，保持為我們的客戶提供業務服務，你知道，如果將其與我們的庫存管理紀律或方法相結合，我們就能夠保持儘管存在通貨緊縮，但利潤率和銷量仍有所成長。

Okay, great. I'm going to sneak one more in if that's all right. You mentioned inventory management, we've seen some categories, outdoor living as an example at the entry level. We've heard de stocking at distribution.

好的，太好了。如果可以的話我會再偷偷溜進去一個。您提到庫存管理，我們已經看到了一些類別，例如入門級的戶外生活。我們聽說過分銷時去庫存。

I know you guys run side pretty tight. How are you thinking about inventory in some of your growth specialty categories as we head into kind of the seasonally weaker part of the year.

我知道你們跑得很緊。當我們進入今年季節性疲軟的時期時，您如何看待某些成長專業類別的庫存。

Yeah, so look, I mean, we have five key specialty product categories and outdoor living being one of the most, one of the significant elements of our long term strategy. And so our goal is to manage our inventory to very specific turn day targets and to support our customers based on the forecasting, we do have.

是的，所以你看，我的意思是，我們有五個關鍵的特色產品類別，戶外生活是其中之一，也是我們長期策略的重要組成部分之一。因此，我們的目標是根據非常特定的周轉日目標管理我們的庫存，並根據我們現有的預測為我們的客戶提供支援。

And as I think about any de stocking that may be happening on the part of customers that ultimately, you know, supports our business, right. So the less inventory they carry, the more we need to carry in order to meet their demands and support again from a working capital management perspective, cash flow perspective for the customer.

當我想到客戶可能發生的任何去庫存行為時，你知道，最終都會支持我們的業務，對吧。因此，他們持有的庫存越少，我們需要持有的庫存就越多，才能滿足他們的需求，並從營運資金管理的角度、客戶現金流的角度再次提供支援。

And then obviously the just in time characteristics, just in time benefits that we can provide really support that. So at the end of the day, we're not necessarily seeing anything similar to what we saw last year. As people were, de stocking and sales started to drop off from a two-step distribution because we haven't seen a commensurate or an equivalent build up in inventory like you had post pandemic.

顯然，我們可以提供的及時特性和及時優勢確實支持了這一點。因此，歸根結底，我們不一定會看到與去年類似的情況。就像人們一樣，去庫存和銷售開始從兩步驟分配中下降，因為我們沒有看到像疫情後那樣的相稱或同等的庫存累積。

So I think that again, the fundamentals are such today that there is a valuable role to play for two step distribution and outdoor living, whether it be railing or decking is a very flat bed friendly two step distribution product where we color and assort in when we carry an assortment of colors to be able to support our customers in that specific space.

因此，我再次認為，今天的基本原理是，兩步分佈和戶外生活可以發揮寶貴的作用，無論是欄桿還是裝飾，都是一種非常平坦的床友好的兩步分佈產品，我們在其中進行顏色和分類時我們提供各種顏色，以便能夠在特定空間為我們的客戶提供支援。

And I think over time, whether it be the east or the west, I mean, outdoor living tends to be a great R&R friendly product. And as interest rates come down and those, he lock rates come down, you could see people going from, concrete patios to decks or kind of play this out multi family commercial.

我認為隨著時間的推移，無論是東方還是西方，戶外生活往往是一種非常適合休閒娛樂的產品。隨著利率下降，他鎖定利率下降，你可以看到人們從混凝土露台走到甲板上，或播放多戶家庭廣告。

That's a very good area for us to focus outdoor living products on you. There isn't a multi family development you go by or even a commercial hotel property that doesn't have outdoor decks that need railing for exit for instance. And that happens to be one of the areas where we've had some really great sales and successful opportunities that we've been able to capitalize on. So continue to be a focus.

這是我們專注於為您提供戶外生活產品的一個非常好的領域。您所經過的多戶住宅開發項目，甚至商業酒店物業，都沒有一個沒有需要欄桿才能退出的戶外甲板。這恰好是我們能夠利用的一些非常好的銷售和成功機會的領域之一。所以繼續成為焦點。

Great. Thanks. For the detail guys. Congrats again on the strong results and good luck.

偉大的。謝謝。對於細節的傢伙。再次恭喜您取得的優異成績並祝您好運。

Thanks, Reuben.

謝謝，魯本。

Kurt Yinger, D.A. Davidson.

庫爾特·英格，D.A.戴維森。

Great, thanks and good morning, everyone. In terms of the specialty deflation, how much of that would you say is kind of strictly manufacturer list price factors versus maybe competitive dynamics.

太好了，謝謝大家，早安。就專業通貨緊縮而言，您認為其中有多少是嚴格的製造商標價因素與可能的競爭動態因素。

And then, as we think sequentially, we know EWP is continue to be pretty soft here. Any other categories that stand out where, versus Q2 or the first half pricing may be getting a little bit more challenging.

然後，正如我們依次思考的那樣，我們知道 EWP 在這裡仍然相當疲軟。與第二季或上半年的定價相比，任何其他突出的類別可能會變得更具挑戰性。

Yeah. So let me talk about the deflation in terms of, you know, where we're seeing the improvement and let's say, pockets of where we see some optimism. So we think on a sequential basis for you know, at least where we sit today in the fourth quarter. I would say it's encouraging that millwork is one sort of bright sign that we're seeing in terms of where we're seeing some price inflation.

是的。因此，讓我談談通貨緊縮，你知道，我們在哪些方面看到了改善，比如說，我們在哪些方面看到了一些樂觀情緒。因此，我們會按順序思考，至少我們今天第四季的情況是如此。我想說，令人鼓舞的是，木製品是一種明亮的跡象，我們看到價格上漲。

And that's actually in our private label product, largely in our private label product within millwork. When I think about the year-over-year sort of you know, challenges that we've had in deflation, I would say, you know, it's really been primary EWP and millwork, particularly in the third quarter.

這實際上是在我們的自有品牌產品中，主要是在我們的木製品中的自有品牌產品中。當我想到我們在通貨緊縮方面所面臨的逐年挑戰時，我想說，這實際上是主要的 EWP 和木製品，特別是在第三季。

But that's, as Shyam mentioned, we had really strong there. So, I would say as we look out, for the next, I would say for the back half of next year, I would expect improvement in really EWP, millwork and to a degree some of the specialty lumber and panels areas.

但正如希亞姆所提到的那樣，我們在這方面確實很強大。因此，我想說，在我們展望未來的過程中，我會說在明年下半年，我預計 EWP、木製品以及在一定程度上某些特殊木材和板材領域會有所改善。

Yeah, the market that.

是的，市場就是這樣。

Sorry, go ahead.

抱歉，請繼續。

Sorry. No, go ahead.

對不起。不，繼續吧。

I was just going to follow up, I mean on the specialty, maybe some of those products and specialty still tied to commodity pricing broadly. Is, there any way to think about what, maybe the carry over headwind from lumber and panel prices has been within the specialty segment this year.

我只是想跟進，我的意思是在專業領域，也許其中一些產品和專業領域仍然與商品定價廣泛相關。有沒有辦法思考一下，今年木材和板材價格帶來的逆風可能已經出現在特種市場。

Yeah, I mean, there certainly was some of that and I would say that's the reason why I would say that maybe our expectation of where we originally, we said that we thought we'd see price increases in the beginning of next year in terms of where we'd see, sort of price inflation and now it's maybe back up a quarter or two and that's largely attributed to that massive deflation that we saw in the second quarter, from mid-May to the end of June.

是的，我的意思是，肯定有一些，我想說這就是為什麼我會說，也許我們最初的預期，我們說我們認為我們會在明年初看到價格上漲我們會看到，價格通膨，現在可能回升一兩個季度，這很大程度上歸因於我們在第二季度（從五月中旬到六月底）看到的大規模通貨緊縮。

And we're seeing that sort of, come through of the, the P&L so we're really on one side, it's really great that we've had really strong vibes in the Q3 but I'd say the deflation has been more than probably we expected. You know, maybe six months ago, nine months ago.

我們看到這種情況，通過損益表，所以我們真的站在一邊，這真的很棒，我們在第三季度有非常強烈的氛圍，但我想說通貨緊縮已經超過了也許我們預料到了。你知道，也許六個月前，九個月前。

But when we look sequentially, we encouraged, you know, as we look at Q4 in terms of, you know seeing some of these modest price increases, you know that we expect to have improvement here in the back half of next year, which Shyam and I alluded to.

但當我們按順序查看時，我們鼓勵，你知道，當我們看第四季度時，你知道看到其中一些溫和的價格上漲，你知道我們預計明年下半年會有改善，Shyam我提到過。

Yeah and from a market dynamic standpoint, you know what has happened post pandemic, there was a lot of new capacity that came online. So there's adequate supply in the marketplace and you're seeing a lot of interesting things play out whether it be mills being shut down or curtailments happening just because there's not enough demand due to the soft housing market.

是的，從市場動態的角度來看，你知道疫情後發生了什麼，有很多新產能上線。因此，市場上有充足的供應，你會看到很多有趣的事情正在發生，無論是工廠關閉，還是因為房地產市場疲軟導致需求不足而發生限產。

And obviously, soft repair and remodel market as well. At the same time when you ask about EWP and millwork, whether it be the channel strategy. So there's certain things we're focused on that are driving millwork and EWP sales along with some of the other product categories that are very friendly to those specific channels.

顯然，軟修復和改造市場也是如此。同時問到EWP和木製品的時候，是否是通路策略。因此，我們關注的某些事情正在推動木製品和 EWP 的銷售，以及其他一些對這些特定管道非常友善的產品類別。

There's also been some substitution in the marketplace due to market dynamics where folks have shifted from, let's say, trust is to EWP. And we have taken advantage of some of those market dynamics to drive EWP sales, which I feel like given our private label product, we can do more so competitively than some of the other folks.

由於市場動態，人們已經從信任轉向 EWP，市場上也出現了一些替代方案。我們已經利用其中一些市場動態來推動 EWP 銷售，我覺得考慮到我們的自有品牌產品，我們可以比其他一些人更有競爭力。

And that's helpful. We've also invested in certain markets and in equipment that allows us to, for example, pre-cut EWP to allow for a more efficient installation of the EWP and thus allow. For example, HVAC folks to, to run duct work through the EWP.

這很有幫助。我們也投資了某些市場和設備，使我們能夠預先切割 EWP，以便更有效地安裝 EWP，從而實現。例如，暖通空調人員透過 EWP 運行管道工程。

Again, that helps reduce labor costs on the part of the ultimate end user and so on. So, they're very specific things we're doing to drive these volumes given current market dynamics, and we will double down on those as the markets continue to evolve.

同樣，這有助於降低最終用戶的勞動力成本等。因此，考慮到當前的市場動態，我們正在做一些非常具體的事情來推動這些銷量，隨著市場的不斷發展，我們將加倍努力。

Got it okay. I appreciate the color there and on the product line expansions and the new geographies, I mean, it does look like that's yielding benefits, how much opportunity kind of across the footprint remains there.

明白了，沒問題。我很欣賞那裡的顏色、產品線的擴展和新的地域，我的意思是，看起來確實產生了好處，整個足跡仍然存在多少機會。

And if we were to think about it from a product category perspective, are there any in particular where you think you're still, relatively under index in terms of kind of geographic coverage.

如果我們從產品類別的角度來考慮，是否有任何您認為在地理覆蓋範圍方面仍然相對低於索引的地方。

Yeah, there are definitely markets. So the answer to that is yes. But that's not a bad thing because there's a lot of opportunity for us to grow in those markets where we're under penetrated. But as we continue to move forward, we are taking very specific actions to ensure optimal stocking positions across all the key categories in all the markets so that we can provide a, you know, a full service proposition no matter the market we're in.

是的，一定有市場。所以答案是肯定的。但這並不是一件壞事，因為我們在那些滲透率較低的市場中有很多發展的機會。但隨著我們繼續前進，我們正在採取非常具體的行動，以確保所有市場的所有關鍵類別的最佳庫存位置，以便無論我們身處哪個市場，我們都可以提供全面的服務主張。

So again, to take full advantage of our scale. For example, earlier this summer, we rolled out a new product and it was a great exercise and how powerful this can be.

再次強調，要充分利用我們的規模優勢。例如，今年夏天早些時候，我們推出了一款新產品，這是一次很棒的練習，它的威力有多大。

We launched a new product with our great supplier, Georgia Pacific and ha ensure that there would be a stocking position in all locations and substantially all locations by a certain date, which helped fuel the channel strategy as it as it related to that product and where they would support our customers best and that, bore a fair amount of fruit. So that strategy along with some of the channel strategies we have will continue to fuel our strategic priorities or support the strategic priorities.

我們與我們的優秀供應商喬治亞太平洋公司一起推出了一種新產品，並確保在特定日期之前在所有地點和幾乎所有地點都有庫存，這有助於推動渠道戰略，因為它與該產品相關，並且在哪裡他們將為我們的客戶提供最好的支持，並且結出累累碩果。因此，該策略以及我們擁有的一些通路策略將繼續推動我們的策略重點或支援策略重點。

Okay. That makes sense and then just lastly, sounds like quarter to date daily sales volumes up versus Q3 I mean, presumably given typical seasonality that would be up year-over-year as well is that a fair statement in terms of what you've seen thus far through October.

好的。這是有道理的，最後，聽起來季度迄今的日銷量與第三季度相比有所上升，我的意思是，考慮到典型的季節性因素，它也會逐年上升，就您所看到的情況而言，這是一個公平的說法到目前為止一直到十月。

Yeah, that's the first statement I would say when we think about it year-over-year, volumes are up mid-single in both categories, which is good. But don't read too much into the first four weeks because of the typical seasonal pattern where our second and third quarter, generally our biggest quarters and then Q4 and Q1 are generally the softest.

是的，這是我要說的第一個說法，當我們逐年思考時，這兩個類別的銷量都上升到了中單，這很好。但不要過度解讀前四個星期，因為典型的季節性模式是我們的第二季度和第三季度，通常是我們最大的季度，然後第四季度和第一季通常是最疲軟的。

But regardless, for the as we sit here today, first four weeks are up mid-single, which is good year to year.

但無論如何，對於我們今天坐在這裡的人來說，前四周的單曲銷量處於中段，這與往年相比還是不錯的。

Perfect. Thanks for the details.

完美的。感謝您提供詳細資訊。

Yeah, thanks Kurt.

是的，謝謝庫爾特。

And that concludes our question-and-answer session. I will now turn the conference back over to Tom Morabito for closing remarks.

我們的問答環節到此結束。現在我將把會議轉回湯姆莫拉比托（Tom Morabito）致閉幕詞。

Thanks Addy. Thank you again for joining us today and we look forward to speaking with you in February as we share our fourth quarter and full year, 2024 results.

謝謝阿迪。再次感謝您今天加入我們，我們期待在 2 月與您交談，分享我們的第四季和 2024 年全年業績。

And ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，我們感謝你們的參與。您現在可以斷開連線。