Masonite International Corp (DOOR) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Masonite's Third Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that this conference is being recorded. I would now like to turn the call over to Rich Leland, Vice President, Finance and Treasurer. Thank you. Please go ahead.

您好，歡迎參加 Masonite 2023 年第三季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。我現在想將電話轉給財務副總裁兼財務主管 Rich Leland。謝謝。請繼續。

Thank you, and good morning, everyone. We appreciate you joining us for today's call. With me here this morning are Howard Heckes, President and Chief Executive Officer; and Russ Tiejema, Executive Vice President and Chief Financial Officer. Also joining us today for Q&A is Chris Ball, our President of Global Residential.

謝謝大家，大家早安。我們感謝您參加今天的電話會議。今天早上和我在一起的有總裁兼執行長霍華德‧赫克斯 (Howard Heckes)；以及執行副總裁兼財務長 Russ Tiejema。今天參加我們問答的還有我們的全球住宅總裁 Chris Ball。

We issued a press release and earnings presentation yesterday, reporting our third quarter 2023 financial results. These documents are available on our website at masonite.com.

我們昨天發布了新聞稿和收益報告，報告了 2023 年第三季的財務表現。這些文件可在我們的網站 masonite.com 上取得。

Before we begin, let me remind you that this call will include forward-looking statements. Each forward-looking statement contained in this call is subject to risks and uncertainties that could cause actual results to differ materially from those projected in such statements. Additional information regarding these factors appears in the section titled Forward-Looking Statements in the press release we issued yesterday. More information about risks can be found under the heading Risk Factors in masonite's most recently filed annual report on Form 10-K and our subsequent Form 10-Q, which are available at sec.gov and at masonite.com. The forward-looking statements in this call speak only as of today, and we undertake no obligation to update or revise any of these statements.

在我們開始之前，讓我提醒您，本次電話會議將包含前瞻性陳述。本次電話會議中包含的每項前瞻性陳述都存在風險和不確定性，可能導致實際結果與此類陳述中的預測有重大差異。有關這些因素的更多資​​訊請參閱我們昨天發布的新聞稿中標題為“前瞻性陳述”的部分。有關風險的更多信息，請參閱 masonite 最近提交的表格 10-K 年度報告和後續表格 10-Q 中的風險因素標題，這些報告可在 sec.gov 和 masonite.com 上獲取。本次電話會議中的前瞻性陳述僅代表今天的情況，我們不承擔更新或修改任何這些陳述的義務。

Our earnings release and today's discussion include certain non-GAAP financial measures. Please refer to the reconciliations, which are in the press release and the appendix to the earnings presentation. Our agenda for today's call includes a business overview from Howard, followed by a review of the third quarter results from Russ and then Howard will provide some closing remarks, and we'll begin a question-and-answer session. With that, let me turn the call over to Howard.

我們的收益發布和今天的討論包括某些非公認會計準則財務指標。請參閱新聞稿和收益報告附錄中的調節表。我們今天電話會議的議程包括霍華德的業務概述，然後是拉斯對第三季度業績的回顧，然後霍華德將提供一些結束語，我們將開始問答環節。現在，讓我把電話轉給霍華德。

Thanks, Rich. Good morning, and welcome, everyone. Starting on Slide 4. I'm very proud of the Masonite team for delivering solid third quarter results in the face of a challenging macro environment, while also making meaningful progress on strategic initiatives that lay the foundation for our future growth. Net sales in the quarter were $702 million, down 4% year-over-year, with rising mortgage rates putting continued pressure on our end markets. Despite these headwinds, our disciplined focus on price/cost management enabled us to hold margins nearly flat year-over-year and delivered $107 million of adjusted EBITDA.

謝謝，里奇。早上好，歡迎大家。從幻燈片4 開始。我對Masonite 團隊感到非常自豪，他們在充滿挑戰的宏觀環境下交付了穩健的第三季度業績，同時在戰略舉措方面取得了有意義的進展，為我們未來的增長奠定了基礎。本季淨銷售額為 7.02 億美元，年減 4%，抵押貸款利率上升對我們的終端市場帶來持續壓力。儘管存在這些不利因素，我們對價格/成本管理的嚴格關注使我們能夠保持利潤率與去年同期幾乎持平，並實現了 1.07 億美元的調整後 EBITDA。

We continued to generate exceptional levels of cash flow in the quarter, driven by the success of our enterprise-wide working capital optimization initiatives. Year-to-date through September, operating cash flow was a record $310 million. And notably, our free cash flow has already surpassed the low end of our full year guidance.

在我們全企業營運資本優化計畫成功的推動下，本季我們持續產生卓越水準的現金流。年初至今，截至 9 月份，營運現金流達到創紀錄的 3.1 億美元。值得注意的是，我們的自由現金流已經超過了全年指導的低端。

Also during the third quarter, we held our 2023 Virtual Investor Day, where we reviewed our long-term strategy and financial goals. The theme for the day was Invisible to Invaluable, which summarizes the key objectives of our integrated Doors That Do More strategy to drive product leadership with innovation and differentiation that make our doors invaluable to homeowners, to win the sale with new marketing and customer engagement initiatives that make the Masonite brand invaluable, to deliver reliable supply by leveraging our scale, vertical integration and the MVantage operating system to make Masonite, the business partner, invaluable, and to achieve our 2027 financial goals of reaching $4 billion in net sales from both organic growth and strategic M&A, while also delivering between 19% and 20% adjusted EBITDA margins and generating over $1 billion in cumulative free cash flow, ultimately making an investment in Masonite invaluable to our shareholders.

同樣在第三季度，我們舉辦了 2023 年虛擬投資者日，回顧了我們的長期策略和財務目標。當天的主題是“從無形到無價”，它總結了我們的“Doors That Do More”綜合戰略的主要目標，即通過創新和差異化推動產品領先地位，使我們的門對房主來說具有無價之寶，透過新的行銷和客戶參與計畫贏得銷售使Masonite 品牌變得無價，透過利用我們的規模、垂直整合和MVantage 作業系統提供可靠的供應，使業務合作夥伴Masonite 變得無價，並實現我們的2027 年財務目標，即有機和有機產品淨銷售額達到40 億美元成長和策略併購，同時也實現19% 至20% 的調整後EBITDA 利潤率，並產生超過10 億美元的累積自由現金流，最終使對Masonite 的投資對我們的股東來說是無價的。

As I said in my closing remarks at Investor Day, Masonite is an industry leader in residential doors. We have identified opportunities for both top line and margin growth and I believe we are well positioned with the right team, the right assets and the right strategy to convert these opportunities into strong long-term financial results and shareholder returns. In case you missed the event, you can find a complete replay as well as downloadable copies of all presentations at investor.masonite.com.

正如我在投資者日的閉幕詞中所說，Masonite 是住宅門產業的領導者。我們已經找到了營收和利潤成長的機會，我相信我們擁有合適的團隊、合適的資產和正確的策略，可以將這些機會轉化為強勁的長期財務表現和股東回報。如果您錯過了此活動，您可以在 Investor.masonite.com 上找到完整的重播以及所有簡報的可下載副本。

Returning to our third quarter business highlights. We saw considerably softer demand year-over-year as both new construction and RRR continue to be impacted by ongoing mortgage rate increases. Our team has responded to this sustained market weakness with consistent execution of our 2023 playbook that includes a balanced mix of actions designed to maintain margins while executing our strategic growth initiatives.

回到我們第三季的業務亮點。由於新建築和存款準備金率繼續受到抵押貸款利率持續上漲的影響，我們看到需求比去年同期大幅疲軟。我們的團隊透過一致執行我們的 2023 年行動手冊來應對這種持續的市場疲軟，其中包括旨在維持利潤的平衡行動組合，同時執行我們的策略成長計畫。

Throughout the third quarter, we stayed focused on servicing our customers and adjusting to order volatility, all while maintaining overall price/cost favorability. We continue to flex variable costs and aggressively pursue savings opportunities to help maintain margins in the near term and effectively coil the spring to realize accelerated margin growth when end market demand strengthens.

在整個第三季度，我們始終專注於為客戶提供服務並根據訂單波動進行調整，同時保持整體價格/成本優勢。我們持續調整變動成本並積極尋求節省機會，以幫助維持短期內的利潤率，並在終端市場需求增強時有效地扭轉局面，實現利潤率的加速成長。

Simultaneously, we continue to invest in strategic initiatives to support future growth, such as the new masonite.com website, marketing support for mix improvements and the commercialization of new products recently released in our retail channel. The acquisition of Endura earlier this year has been another bright spot for us. Our success in achieving the projected synergies and smooth integration of this business has resulted in strong performance, highlighted by a second consecutive quarter of mid-teens margins and an adjusted EBITDA contribution of $10 million to the consolidated business.

同時，我們繼續投資於支持未來成長的策略舉措，例如新的 masonite.com 網站、對組合改進的行銷支援以及最近在我們的零售通路中發布的新產品的商業化。今年稍早收購 Endura 是我們的另一個亮點。我們成功地實現了該業務的預期協同效應和順利整合，帶來了強勁的業績，尤其是連續第二個季度實現中雙位數的利潤率以及對合併業務的調整後EBITDA 貢獻為1000 萬美元。

On the heels of the successful Endura transaction, we completed our second acquisition of the year by purchasing Fleetwood subsequent to quarter end, on October 19.

繼 Endura 交易成功之後，我們於 10 月 19 日季度末收購了 Fleetwood，完成了今年的第二次收購。

Let's continue to Slide 5. I'm thrilled to share more details about our addition of the Fleetwood brand of premium glass doors to the Masonite product portfolio. As you can see in this beautiful picture from a customer location in Los Angeles, Fleetwood doors unmistakably define home, enabling a seamless flow between indoor and outdoor living spaces when open, while giving the home security, abundant natural light and spectacular views when closed. You can find many more examples like this on the portfolio pages of their website at fleetwoodusa.com.

讓我們繼續幻燈片 5。我很高興分享有關我們將 Fleetwood 品牌優質玻璃門添加到 Masonite 產品組合中的更多詳細資訊。正如您在洛杉磯客戶位置的這張美麗圖片中看到的那樣，弗利特伍德門明確地定義了家，打開時可實現室內和室外生活空間之間的無縫流動，同時在關閉時提供家庭安全、充足的自然光和壯麗的景色。您可以在其網站的作品集頁面上找到更多類似的範例，網址為：fleetwoodusa.com。

Turning to Slide 6. In the luxury residential glass door market, Fleetwood is the leader that is well known among architects and builders. Its product lineup includes a range of folding, sliding, pockets, hinged and pivot doors, as well as accompanying glass walls and windows systems. These products are highly customizable, but all take advantage of the unique technology and manufacturing processes that have been developed by Fleetwood to meet or exceed the strictest quality standards.

轉向幻燈片 6。在豪華住宅玻璃門市場中，Fleetwood 是建築師和建築商中眾所周知的領導者。其產品系列包括一系列折疊門、滑動門、口袋門、鉸鏈門和樞軸門，以及隨附的玻璃牆和窗戶系統。這些產品是高度可客製化的，但都利用了弗利特伍德開發的獨特技術和製造工藝，以滿足或超過最嚴格的品質標準。

Fleetwood door panels can range in size up to 20 feet tall and 12 feet wide, and are made with custom design precision hardware components to operate effortlessly, while being able to withstand the extreme weather that often comes with some of the most exquisite views in the world. In fact, Fleetwood holds several patents and trademarks for products with energy savings and weather-resistant features.

Fleetwood 門板的尺寸範圍可達 20 英尺高和 12 英尺寬，並採用定制設計的精密硬件組件製成，可輕鬆操作，同時能夠承受極端天氣，這種天氣通常伴隨著一些最精緻的景觀。世界。事實上，弗利特伍德擁有多項具有節能和耐候特性的產品專利和商標。

When evaluating the business, we saw several compelling attributes. First, Fleetwood's business strategy of bringing innovative door systems to the residential market that solve life and living problems, with a special focus on customer service and building close relationships with channel partners, is highly aligned with our own Doors That Do More strategy.

在評估該業務時，我們看到了幾個引人注目的屬性。首先，Fleetwood 的業務策略是將創新的門系統引入住宅市場，解決生活和居住問題，特別注重客戶服務並與通路夥伴建立密切的關係，這與我們自己的 Doors That Do More 策略高度一致。

Second, the acquisition allows us to more effectively address the large patio door market and indoor/outdoor living trend but with a focus on premium aluminum framed glass segment, which we view as more differentiated than the mainstream sliding vinyl patio door segment. And third, as we said at our recent Investor Day, we are intent on adding high-value, better and best products to our comprehensive range of Doors That Do More. The acquisition of Fleetwood provides an immediate lift to our portfolio of best products and helps us move closer to our 2027 goals.

其次，此次收購使我們能夠更有效地應對大型露台門市場和室內/室外生活趨勢，但重點關注優質鋁框玻璃細分市場，我們認為該細分市場比主流滑動乙烯基露台門細分市場更具差異化。第三，正如我們在最近的投資者日上所說，我們致力於為我們的全方位門產品系列添加高價值、更好、最好的產品。收購 Fleetwood 立即提升了我們的最佳產品組合，並幫助我們更接近 2027 年的目標。

Moving to Slide 7. Let me give you more detail about Fleetwood, which has been family owned since its founding in 1961. The business is located in Corona, California and operates a modern 200,000 square foot manufacturing facility. This is also the site for the administrative headquarters as well as R&D laboratories, which include on-site frost, wind, water and severe weather testing capabilities. The company has approximately 350 total employees. About 70% of Fleetwood's revenues come from door systems, and 30% from matching glass walls and window systems.

轉到幻燈片7。讓我向您介紹有關Fleetwood 的更多詳細信息，該公司自1961 年成立以來一直是家族企業。該企業位於加利福尼亞州科羅納，擁有一座佔地200,000 平方英尺的現代化製造工廠。這裡也是行政總部和研發實驗室的所在地，其中包括現場霜凍、風、水和惡劣天氣測試能力。公司共有員工約 350 名。 Fleetwood 約 70% 的收入來自門系統，30% 來自配套的玻璃牆和窗戶系統。

Through targeted advertising and relationships established over many years with some of the country's top architects, Fleetwood has built a well-known and trusted brand. Channel partners include more than 200 specialty dealers across the United States and Canada, although the majority of the sales today, about 70%, are concentrated on the West Coast. They have had unusually strong results in 2023 due to a large backlog of orders that resulted from supply chain constraints in the prior year.

透過有針對性的廣告以及多年來與國內一些頂級建築師建立的關係，弗利特伍德已經建立了一個眾所周知且值得信賴的品牌。通路合作夥伴包括美國和加拿大的 200 多家專業經銷商，儘管目前大部分銷售額（約 70%）集中在西海岸。由於上一年供應鏈限制導致大量訂單積壓，他們在 2023 年取得了異常強勁的表現。

In 2024, we expect Fleetwood to contribute more normalized results to Masonite with an estimated $150 million in net sales and $35 million in adjusted EBITDA. We also expect the business to be accretive to EPS in 2024. Now with the tax benefits we expect from this transaction, our purchase price would equate to approximately $255 million or 7x pro forma EBITDA, an attractive purchase price multiple for a tightly adjacent business with great growth potential and margins in excess of 20%.

到 2024 年，我們預計 Fleetwood 將為 Masonite 貢獻更標準化的業績，預計淨銷售額為 1.5 億美元，調整後 EBITDA 為 3,500 萬美元。我們也預計該業務將在 2024 年增加每股收益。現在，考慮到我們預期從此次交易中獲得的稅收優惠，我們的收購價格將相當於約 2.55 億美元，即預計 EBITDA 的 7 倍，對於與成長潛力大，利潤率超過20%。

As a result, Fleetwood clearly met both the strategic and financial screens we've established for assessing M&A opportunities. The current management team at Fleetwood will continue to operate the business independently, reporting results through our North American Residential segment. We are very excited about the future potential for this business, and I'd like to welcome all the Fleetwood employees, customers and partners to the Masonite family and thank you for your efforts to help Fleetwood continue to grow and thrive as a leader in the market.

因此，弗利特伍德顯然符合我們為評估併購機會而建立的策略和財務篩選。弗利特伍德目前的管理團隊將繼續獨立經營業務，並透過我們的北美住宅部門報告業績。我們對這項業務的未來潛力感到非常興奮，我歡迎所有 Fleetwood 員工、客戶和合作夥伴加入 Masonite 大家庭，並感謝你們為幫助 Fleetwood 作為行業領導者不斷成長和繁榮所做的努力市場。

Now I'd like to turn the call over to Russ to provide more details on our third quarter financial performance. Russ?

現在我想將電話轉給 Russ，以提供有關我們第三季財務業績的更多詳細資訊。拉斯？

Thanks, Howard. Good morning, everyone. Let's turn to Slide 9 for an overview of our consolidated financial results. Third quarter net sales were $702 million, down 3.5% from last year, driven primarily by a 13% decline in volume. This decline was slightly greater than what we were anticipating at the time of our Q2 earnings call, when there was more optimism about macroeconomic conditions in the North American residential market and builder sentiment was trending upward.

謝謝，霍華德。大家，早安。讓我們轉向投影片 9 來概述我們的合併財務表現。第三季淨銷售額為 7.02 億美元，比去年下降 3.5%，主要是因為銷量下降 13%。這一下降幅度略大於我們在第二季財報電話會議時的預期，當時人們對北美住宅市場的宏觀經濟狀況更加樂觀，建築商信心呈上升趨勢。

Partially offsetting the volume impact this quarter was an 8% benefit from the Endura acquisition and a 1% increase in average unit price or AUP. Year-over-year, gross profit decreased 1% to $166 million due to the lower net sales. However, gross margin improved 60 basis points to 23.6%, thanks to our continued focus on cost management. Selling, general and administration expenses were $99 million, up 19% year-over-year, due primarily to the addition of SG&A from Endura and an increase in M&A-related costs.

收購 Endura 帶來的 8% 收益以及平均單價或 AUP 成長 1% 部分抵消了本季銷售影響。由於淨銷售額下降，毛利年減 1% 至 1.66 億美元。然而，由於我們持續關注成本管理，毛利率提高了 60 個基點至 23.6%。銷售、一般和管理費用為 9,900 萬美元，年增 19%，這主要是由於 Endura 的 SG&A 增加以及併購相關成本的增加。

Third quarter net income was $41 million compared to $57 million in the third quarter of 2022. The decrease was driven by higher non-EBITDA costs, including increased depreciation and amortization, higher interest expense and costs associated with our previously announced restructuring plans, all partially offset by lower tax expense. Diluted earnings per share in the quarter were $1.86 compared to $2.54 last year. Adjusted earnings per share, which excludes restructuring costs as well as acquisition and due diligence related costs, were $2.04.

第三季淨利為4,100 萬美元，而2022 年第三季為5,700 萬美元。這一下降是由於非EBITDA 成本增加造成的，包括折舊和攤提增加、利息支出以及與我們先前宣布的重組計劃相關的成本增加，所有這些都部分歸咎於非EBITDA 成本增加。被較低的稅收支出所抵消。本季稀釋後每股收益為 1.86 美元，去年同期為 2.54 美元。調整後每股收益（不包括重組成本以及收購和盡職調查相關成本）為 2.04 美元。

Adjusted EBITDA for the quarter was $107 million, down slightly from $112 million last year. Adjusted EBITDA margin of 15.3% was within 10 basis points of prior year, despite lower volume.

本季調整後 EBITDA 為 1.07 億美元，略低於去年的 1.12 億美元。儘管銷售量較低，但調整後 EBITDA 利潤率為 15.3%，與去年同期相比下降了 10 個基點以內。

On the right-hand side of the slide is more detail on factors that influenced adjusted EBITDA in the quarter. The combined impact of volume and AUP turned negative in the quarter as the majority of carryover pricing from 2022 expired. Material cost impacts turned positive in the quarter however, as material inflation has broadly stabilized and inbound logistics costs have declined.

幻燈片右側詳細介紹了影響本季調整後 EBITDA 的因素。由於 2022 年的大部分結轉定價到期，本季銷售量和 AUP 的綜合影響轉為負值。然而，由於材料通膨基本上穩定且入境物流成本下降，材料成本影響在本季轉為正面。

Although this is a welcome development, it reflects a level of aggregate deflation on material and logistics costs that is still tracking slightly behind what we had originally expected to see by this point in the year. As we noted on our second quarter earnings call, our original outlook for low to mid-single-digit deflation for the full year has been tracking towards the low end of that range. Keep in mind that 1 point of material cost deflation is worth roughly $10 million to adjusted EBITDA at a consolidated level.

儘管這是一個值得歡迎的發展，但它反映出材料和物流成本的整體通貨緊縮水平仍略低於我們今年此時最初預期的水平。正如我們在第二季財報電話會議上指出的那樣，我們對全年低至中個位數通貨緊縮的最初預期一直在接近該範圍的低端。請記住，1 個百分點的材料成本通貨緊縮相當於約 1000 萬美元的調整後 EBITDA（合併後的 EBITDA）。

Factory and distribution costs were negative as expected, due primarily to the combined impact of volume deleveraging and inflation, partially offset by continuous improvement in cost control initiatives. On an adjusted EBITDA basis, SG&A was up just slightly, due to incremental investments in strategic growth initiatives. Outside of those expenses, we were able to offset inflation on wages, benefits and other SG&A with restructuring actions and careful cost management. And lastly, as Howard noted earlier, the Endura acquisition contributed $10 million of adjusted EBITDA in the quarter.

工廠和分銷成本如預期為負，主要是由於數量去槓桿化和通貨膨脹的綜合影響，部分被成本控制措施的持續改進所抵消。在調整後的 EBITDA 基礎上，由於策略性成長計畫的增量投資，SG&A 略有成長。除了這些費用之外，我們還能夠透過重組行動和謹慎的成本管理來抵銷薪資、福利和其他銷售、管理及行政費用的通貨膨脹。最後，正如霍華德先前指出的，Endura 收購為本季貢獻了 1000 萬美元的調整後 EBITDA。

Turning to Slide 10. Let's look at highlights from the North American Residential segment. Third quarter net sales were $553 million, down 5% year-over-year driven by a 14% decline in volume and a 1% decrease in AUP, partially offset by a 10% benefit from the Endura acquisition. Soft end-market demand accounted for most of the volume impact in the quarter. The wholesale channel was down mid-teens, including the impact of decisions to prioritize margin over unit volume and the retail channel was down low double digits on weaker POS due to lower RRR spend and modest inventory adjustments.

轉向幻燈片 10。讓我們看看北美住宅領域的亮點。第三季淨銷售額為 5.53 億美元，年減 5%，原因是銷量下降 14%，AUP 下降 1%，但被收購 Endura 帶來的 10% 收益部分抵銷。終端市場需求疲軟是本季銷售影響的主要原因。批發通路出現了十幾歲左右的下降，其中包括優先考慮利潤而不是單位銷售的決定的影響，而零售通路則因存款準備金率支出下降和庫存調整適度而導致POS 疲軟，出現低兩位數下降。

Price/cost remained positive in the quarter. However, AUP was down slightly, now that we have lapped all 2022 price actions. Product mix continued to be a modest AUP tailwind in the quarter. Adjusted EBITDA in the quarter was $109 million, down 5% from last year. Adjusted EBITDA margin decreased 20 basis points year-over-year to 19.7%. Excluding Endura, however, segment margins were actually up 20 basis points.

本季價格/成本維持正值。然而，由於我們已經完成了 2022 年所有價格走勢，AUP 略有下降。本季產品組合持續成為 AUP 的溫和推動因素。該季度調整後 EBITDA 為 1.09 億美元，較去年下降 5%。調整後 EBITDA 利潤率年減 20 個基點至 19.7%。然而，如果不包括 Endura，該部門的利潤率實際上上升了 20 個基點。

Although Endura margins are modestly dilutive to the overall segment, the business is performing very well, delivering strong mid-teens EBITDA margins and running ahead of our original synergy estimates due to strong collaboration across all areas of integration. Endura has embraced the Doors That Do More strategy, and these results reflect the positive impact of work done on reliable supply and customer engagement.

儘管 Endura 的利潤率對整個細分市場略有稀釋，但該業務的表現非常出色，實現了強勁的 EBITDA 利潤率，並且由於所有整合領域的強有力合作，其協同效應超出了我們最初的預期。 Endura 採用了「Doors That Do More」策略，這些結果反映了所做工作對可靠供應和客戶參與的正面影響。

In terms of product leadership, the Endura engineering team has partnered with the sales force to support the nationwide rollout of the Masonite performance store system, while continuing to focus on joint product development efforts on higher-value exterior door systems. As we said in our recent Investor Day, the Doors That Do More strategy is our North Star, which helps differentiate us in the door industry, and it is always nice to get affirmation from our customers.

在產品領導力方面，Endura 工程團隊與銷售人員合作，支援 Masonite 性能商店系統在全國範圍內的推廣，同時繼續專注於更高價值外門系統的聯合產品開發工作。正如我們在最近的投資者日中所說，「Doors That Do More」策略是我們的北極星，這有助於我們在門行業中脫穎而出，得到客戶的肯定總是很高興。

In the third quarter, we were honored to have 2 of our largest customers, the Home Depot and Lowe's, recognize us with Millwork Partner of the Year awards for the hard work our teams have done to deliver consistent and reliable supply, for our leadership in bringing new and innovative products to the market and for our collaboration on sales and marketing initiatives.

在第三季度，我們很榮幸獲得兩家最大的客戶——家得寶(Home Depot) 和勞氏(Lowe's) 的認可，授予我們年度Millwork 合作夥伴獎，以表彰我們的團隊為提供一致和可靠的供應所做的辛勤工作，表彰我們在為市場帶來新的創新產品，並促進我們在銷售和行銷計劃方面的合作。

We have partnered with both The Home Depot and Lowe's for many years on joint business planning initiatives, and it's great to see our efforts bearing fruit. So a big shout out this quarter to the Masonite teams that are working to activate the Doors That Do More strategy with our customers.

我們與家得寶 (The Home Depot) 和勞氏 (Lowe's) 在聯合業務規劃計劃方面合作多年，很高興看到我們的努力取得成果。因此，本季我們要向 Masonite 團隊大聲疾呼，他們正在努力與我們的客戶一起啟動「Doors That Do More」策略。

Now turning to Slide 11 and our Europe segment. Third quarter net sales were $65 million, down 2% year-over-year. 7% lower volume was offset by a 7% favorable impact from foreign exchange, but AUP was lower by 2% due entirely to the mix impact of relatively weaker results in exterior versus interior doors. Adjusted EBITDA was $4 million in the quarter with an adjusted EBITDA margin held roughly flat year-over-year at 6%, despite these incremental volume and mix headwinds.

現在轉向幻燈片 11 和我們的歐洲部分。第三季淨銷售額為 6,500 萬美元，年減 2%。 7% 的銷量下降被外匯帶來的 7% 的有利影響所抵消，但 AUP 下降了 2%，完全是由於外門與內門業績相對較弱的綜合影響。儘管存在銷售增量和混合阻力，本季調整後 EBITDA 為 400 萬美元，調整後 EBITDA 利潤率與去年同期基本持平，為 6%。

In the U.K., which accounts for over 90% of our Europe segment sales, new home completions were down year-over-year by 14% and indications are that the RRR market is down over 20%. Our interior door business, which primarily serves new construction, meaningfully outperformed the market, thanks to service levels, which allowed us to win a larger share of wallet with our customers. We expect this tailwind to diminish through year-end as new construction slows seasonally, but remain focused on maintaining these service levels as a competitive advantage. On the exterior door side of the business, we are seeing sales declines that are more in line with the RRR market.

英國占我們歐洲業務銷售額的 90% 以上，新房竣工量年減 14%，有跡象顯示 RRR 市場下降了 20% 以上。我們的室內門業務主要服務於新建建築，由於服務水準顯著優於市場，這使我們能夠贏得客戶更大的錢包份額。我們預計，隨著新建設季節性放緩，這種推動力將在年底減弱，但仍將重點放在維持這些服務水準作為競爭優勢。在外門業務方面，我們看到銷售下降與存款準備率市場更為一致。

Homeowners in the U.K. are still facing exceptionally high cost of living challenges and have cut back discretionary repair and remodel projects. Historically, we see elevated exterior door sales in Q4 in the run up to the holiday season, but we are not expecting that to incur this year. While the macroeconomic situation in the U.K. is not ideal, our Europe team is aggressively managing price-cost to offset inflation while maintaining service levels and executing targeted marketing initiatives to win new business.

英國的房主仍然面臨著極高的生活成本挑戰，並削減了自行決定的維修和改造項目。從歷史上看，我們預計第四季度的外門銷量會在假期季節到來之前增加，但我們預計今年不會出現這種情況。儘管英國的宏觀經濟狀況並不理想，但我們的歐洲團隊正在積極管理價格成本以抵消通貨膨脹，同時保持服務水準並執行有針對性的行銷舉措以贏得新業務。

Moving to Slide 12 and the Architectural segment. Third quarter net sales increased 4% year-over-year to $81 million, driven by an 18% increase in AUP, partially offset by 10% lower volumes and a 4% decline in component sales. Adjusted EBITDA was $5 million in the quarter, up from breakeven in the prior year. We are pleased with the year-over-year improvement in the quarter, but our expectations are somewhat muted for Q4 as the pace of orders through the quarter has slowed in line with the softening end market.

轉到投影片 12 和建築部分。第三季淨銷售額年增 4%，達到 8,100 萬美元，這主要得益於 AUP 增長 18%，但銷量下降 10% 和零部件銷售額下降 4% 部分抵消了這一影響。本季調整後 EBITDA 為 500 萬美元，高於前一年的損益兩平。我們對本季的年比改善感到滿意，但我們對第四季度的預期有所減弱，因為該季度的訂單速度隨著終端市場的疲軟而放緩。

With respect to the strategic review that has been underway for the Architectural segment, we continue to expect that a complete or partial divestiture of the business is the most likely outcome. Until recently, we were negotiating exclusively with one party to achieve a sale of the entire segment. As you can imagine, a carve-out of an entire business is complex. Those negotiations ultimately reached a point where we did not feel value would be maximized on behalf of our shareholders. As a result, we are now in discussions with other interested parties with respect to either a full or partial divestiture. We will update you further when we have concluded the likely outcome of this next stage of the process.

關於建築部門正在進行的策略審查，我們仍然預計完全或部分剝離該業務是最有可能的結果。直到最近，我們一直在與一方進行獨家談判，以實現整個細分市場的出售。正如您可以想像的那樣，整個業務的剝離是複雜的。這些談判最終達到了我們認為股東價值無法最大化的地步。因此，我們現在正在與其他相關方就全部或部分剝離進行討論。當我們得出下一階段流程的可能結果時，我們將進一步向您通報最新情況。

Let's turn now to Slide 13 for a summary of our liquidity and cash flow performance. At quarter end, our total available liquidity was $663 million, including $360 million in unrestricted cash. Net debt was $736 million, resulting in a net debt to adjusted EBITDA leverage ratio of 1.7x on a trailing 12-month basis, down from 1.8x at the end of the second quarter.

現在讓我們轉向投影片 13，總結我們的流動性和現金流表現。截至季末，我們可用的流動資金總額為 6.63 億美元，其中包括 3.6 億美元的非限制性現金。淨負債為 7.36 億美元，導致過去 12 個月淨負債與調整後 EBITDA 槓桿比率為 1.7 倍，低於第二季末的 1.8 倍。

Subsequent to quarter end, to fund the Fleetwood acquisition, we used $200 million in cash and borrowed $85 million against our ABL, $15 million of which has already been repaid. Cash provided by operations was $310 million through the end of the third quarter compared to $83 million in the same period of 2022. A reduction in core working capital has been a key driver of our improved cash flow. Thanks to actions implemented so far this year, we have reduced total core working capital as a percent of trailing 12 months net sales by over 400 basis points from 24% a year ago to 20% at the end of the third quarter this year.

季度末後，為了資助收購 Fleetwood，我們使用了 2 億美元現金，並以 ABL 借款 8,500 萬美元，其中 1,500 萬美元已償還。截至第三季末，營運提供的現金為 3.1 億美元，而 2022 年同期為 8,300 萬美元。核心營運資本的減少是我們現金流改善的關鍵驅動力。由於今年迄今採取的行動，我們已將核心營運資本總額佔過去 12 個月淨銷售額的百分比減少了 400 個基點，從一年前的 24% 降至今年第三季末的 20%。

Year-to-date capital expenditures are approximately $86 million, remaining on track with our full year outlook. Year-to-date free cash flow was $224 million, positioning us well to reach or exceed the upper end of our full year outlook of between $220 million and $250 million.

年初至今的資本支出約為 8,600 萬美元，與我們的全年展望保持一致。年初至今的自由現金流為 2.24 億美元，這使我們能夠達到或超過全年預期上限 2.2 億至 2.5 億美元。

During the third quarter, Masonite repurchased approximately 106,000 shares of stock for $10 million at an average price of $94.05. We also repaid $10 million of long-term debt in the quarter, in line with the principal amortization required under our Term Loan A.

第三季度，Masonite 以 1000 萬美元的價格回購了約 106,000 股股票，平均價格為 94.05 美元。我們也在本季償還了 1000 萬美元的長期債務，符合定期貸款 A 要求的本金攤銷。

Turning to Slide 14. I'd like to review some of the factors likely to influence our results in the fourth quarter and going into 2024. Over the summer, there were signs of green shoots emerging in the housing markets with builder sentiment improving and a broad expectation that we could see a more stable interest rate environment. Since that time, uncertainty has reemerged as a common theme. Two key drivers of our end market performance, mortgage rates and existing home sales, have yet to trend favorably.

轉向投影片 14。我想回顧一下可能影響我們第四季和 2024 年業績的一些因素。整個夏天，隨著建築商信心的改善和房地產市場出現復甦跡象，房地產市場出現了復甦的跡象。人們普遍預期我們可以看到更穩定的利率環境。從那時起，不確定性重新成為一個共同主題。抵押貸款利率和現房銷售是我們終端市場表現的兩個關鍵驅動因素，但趨勢尚未向好。

The average 30-year fixed mortgage in the U.S. is now at a 23-year high, meaning that most buyers in the market aged 50 or younger have never experienced home buying with financing costs at this level. Large new homebuilders are coping with the situation by buying down rates, but that is not helping in the existing home sale -- home resale market, which is at its lowest since 2010. Given the dearth of existing homes available for sale and mortgage rates that make switching costs much higher for existing homeowners, there was an expectation of more renovation in place, which could partially offset a lack of renovation dollars typically invested following existing home purchases.

美國平均30年期固定抵押貸款目前處於23年來的高位，這意味著市場上大多數50歲或以下的買家從未經歷過以這種水平的融資成本購房。大型新建住宅建築商正在透過降低利率購買來應對這種情況，但這對現房銷售（即房屋轉售市場）無濟於事，目前該市場正處於2010 年以來的最低水平。鑑於可供出售的現房和抵押貸款利率的缺乏，由於現有房主的轉換成本更高，因此人們期望進行更多的裝修，這可以部分抵消購買現有房屋後通常投資的裝修資金的不足。

This is yet to materialize, likely as a result of higher interest rates and tighter credit standards impacting home equity borrowing. We are consistently hearing from others in the building products industry, including our retail customers, that large and discretionary renovation projects are the areas of greatest weakness in the RRR market. With these choppy end market dynamics still in place today, we expect ongoing headwinds in North America for both wholesale and retail volumes in Q4, with a competitive environment that continues to require consideration of trade-offs between price and volume.

這尚未實現，可能是由於利率上升和信貸標準收緊影響了房屋淨值借貸。我們不斷從建築產品行業的其他人（包括我們的零售客戶）那裡得知，大型和可自由支配的改造項目是 RRR 市場最薄弱的領域。由於這些波動的終端市場動態今天仍然存在，我們預計第四季度北美的批發和零售量將持續面臨阻力，競爭環境繼續需要考慮價格和銷售之間的權衡。

In the U.K., we are expecting that sales will continue to remain weak through year-end, without the typical seasonal bump in Q4, as noted earlier. This weakness is likely to continue into 2024. Taking all of these factors into account and excluding any impacts from our acquisition of Fleetwood, we are still expecting to achieve our original full year guidance, with consolidated net sales likely to fall within the middle of our guidance range and adjusted EBITDA likely to be closer to the bottom end of the range.

在英國，我們預計到年底銷售將繼續保持疲軟，如前所述，第四季度不會出現典型的季節性成長。這種疲軟狀態可能會持續到 2024 年。考慮到所有這些因素，並排除我們收購 Fleetwood 的任何影響，我們仍然期望實現最初的全年指引，綜合淨銷售額可能會落在我們預期的中間位置。指導範圍和調整後的EBITDA 可能更接近該範圍的下限。

Speaking of Fleetwood, in Q4, we will realize just over 2 months of results from the acquisition. The contribution from adjusted EBITDA is likely to be limited, given upfront integration costs and purchase price accounting impacts.

說到弗利特伍德，第四季度，我們將在 2 個多月的時間內實現收購的成果。考慮到前期整合成本和購買價格會計影響，調整後的 EBITDA 的貢獻可能有限。

Now I'd like to turn the call back over to Howard for some closing comments.

現在我想將電話轉回給霍華德，請他發表一些結束語。

Thanks, Russ. Clearly our markets are going through a period of adjustment to higher mortgage rates, and homeowners are pausing to consider the best time to either move or invest in renovation. Despite these short-term headwinds, we remain confident that other macroeconomic realities such as the underbuilt and aging housing stock and significantly improved levels of home equity will ultimately drive a resurgence of demand in both new construction and RRR. We also believe strongly that secular tailwinds that favor the door business, in particular, provide an additional tailwind as people are spending more time in their homes, many working remotely and looking for the value-added benefits that doors can provide, including privacy, security, style, light, comfort and connectivity.

謝謝，拉斯。顯然，我們的市場正在經歷一段適應較高抵押貸款利率的調整期，房主正在停下來考慮搬家或投資裝修的最佳時機。儘管存在這些短期阻力，我們仍然相信，其他宏觀經濟現實，例如住房建設不足和老化以及房屋淨值水平的顯著改善，將最終推動新建建築和存款準備金率需求的復甦。我們也堅信，有利於門業的長期利好因素尤其會提供額外的利好，因為人們在家中花費更多時間，許多人遠距工作並尋求門可以提供的增值收益，包括隱私、安全、風格、光線、舒適度和連接性。

Against this backdrop, we are intently focused on controlling what is in our control by executing on our 2023 playbook initiatives and carefully managing price-costs to preserve our margins and position ourselves for optimal performance when the market turns. This approach also applies to our intense focus on cash flow and our highly coordinated effort to unlock working capital across the company. I'm very pleased with the significant results our team has delivered so far this year, and I'm looking forward to achieving additional benefits in 2024.

在此背景下，我們專注於透過執行 2023 年行動手冊計劃並仔細管理價格成本來控制我們所控制的內容，以保持我們的利潤並在市場轉變時為自己定位最佳業績。這種方法也適用於我們對現金流的高度關注以及我們在整個公司釋放營運資金的高度協調努力。我對我們的團隊今年迄今取得的重大成果感到非常滿意，並期待在 2024 年實現更多收益。

Continuing to deliver strong cash flow and maintaining a healthy balance sheet are key elements that support our capital allocation strategy. The recent acquisition of Fleetwood marks the second important M&A transaction that we have completed this year, both of which are helping us to reshape our business by putting emphasis on our differentiated better and best door systems and enhancing our leadership position in the market, while moving us closer to our 2027 financial goals.

持續提供強勁的現金流量和維持健康的資產負債表是支持我們資本配置策略的關鍵要素。最近收購Fleetwood 是我們今年完成的第二筆重要併購交易，這兩筆交易都有助於我們重塑業務，重點關注我們差異化的更好和最好的門系統，增強我們在市場上的領導地位，同時推動我們的業務發展。我們更接近 2027 年的財務目標。

Overall, we believe we are actively moving in the right direction to create value for homeowners, channel partners and investors. We are building momentum with our Doors That Do More strategy, navigating through short-term market dynamics while laying the foundation for strong performance for years to come. We continue to be excited by the opportunities we see within the approximately $27 billion North American market for door systems, and we are confident that our people, our assets and our strategy uniquely position Masonite to take advantage of these opportunities.

總體而言，我們相信我們正在積極朝著正確的方向前進，為房主、通路合作夥伴和投資者創造價值。我們正在透過「Doors That Do More」策略積蓄動力，應對短期市場動態，同時為未來幾年的強勁業績奠定基礎。我們繼續對在價值約 270 億美元的北美門系統市場中看到的機會感到興奮，我們相信我們的員工、我們的資產和我們的策略使 Masonite 能夠利用這些機會。

Thank you for your continued interest and support. Now I'd like to open the call to your questions. Operator?

感謝您一直以來的關注與支持。現在我想開始回答大家的問題。操作員？

(Operator Instructions) Today's first question is coming from Michael Rehaut of JPMorgan.

（操作員指令）今天的第一個問題來自摩根大通的Michael Rehaut。

This is Andrew Azzi on for Mike. I would just like to maybe drill down a bit into maybe the drivers of the lowered EBITDA guidance and maybe your expectations by segment. What are kind of the big deltas versus maybe last quarter?

我是安德魯·阿齊 (Andrew Azzi) 替邁克發言。我只是想深入了解 EBITDA 指引下調的驅動因素，以及您對各細分市場的期望。與上個季度相比，大的三角洲是什麼樣的？

Yes. Andrew, it's Russ. I'll take that one. I guess I set the table by saying at the beginning of the year, we put out a full year guide that we felt was realistic, and we're in a position to deliver against it despite what have been some ongoing macro headwinds that, frankly, stand a little bit in contrast to how everyone was feeling just a few months ago when there were some green shoots that were showing some early emergence in the housing market here in North America. But that all said, I would attribute the divergence in EBITDA to closer to the bottom end as opposed to the mid or higher end of the guide to really 2 factors.

是的。安德魯，我是拉斯。我會接受那個。我想我在今年年初就說過，我們推出了一份我們認為是現實的全年指南，並且我們有能力克服它，儘管坦率地說，存在一些持續的宏觀阻力與幾個月前每個人的感受形成了鮮明對比，當時北美房地產市場出現了一些萌芽。但話雖如此，我將 EBITDA 的差異歸因於更接近底部，而不是指南的中端或高端，這實際上有兩個因素。

One is, and we did comment on this last quarter, is that material cost deflation is running lighter than we originally expected. We came into the year thinking low to mid-single digits. It's trended towards low single digits. We don't see anything changing around that. And then the outlook for our business in Europe is under pressure, and it's weaker sitting here today than it was 3 months ago. I would view those as the 2 primary factors. As usual, volume in the North American residential business is a swing factor.

其中之一是，我們在上個季度對此進行了評論，材料成本通貨緊縮的程度比我們最初預期的要輕。今年我們的想法是低至中個位數。它的趨勢是低個位數。我們認為這方面沒有任何改變。然後我們在歐洲的業務前景面臨壓力，今天的情況比三個月前更弱。我將這些視為兩個主要因素。與往常一樣，北美住宅業務的成交量是一個波動因素。

If we had seen some incremental strengthening in volumes in NA res, I think as many people across the industry were expecting just a few months ago, that would have put us in a position to deliver more down the middle of the fairway with respect to EBITDA but -- and it would have allowed us to offset those pressures that we were seeing in material and in Europe. But in the absence of that, that's what informed our view that we should call more towards the lower end for the EBITDA guide, while maintaining net sales probably down the middle of the fairway.

如果我們看到北美資源的銷量有所增加，我認為正如幾個月前整個行業的許多人所期望的那樣，這將使我們能夠在 EBITDA 方面提供更多的中間位置但是——這將使我們能夠抵消我們在材料和歐洲看到的壓力。但在沒有這種情況的情況下，這就是我們的觀點，即我們應該將 EBITDA 指南更多地推向低端，同時將淨銷售額保持在中間水平。

That was really great color. I mean, I just wanted to ask also if -- some of your peers have offered an outlook for the R&R market next year maybe flat to slightly down. I was curious on your read or any color there?

那真是很棒的顏色。我的意思是，我只是想問，你們的一些同行是否對明年的 R&R 市場前景做出了持平或略有下降的展望。我很好奇你讀過的書或那裡有什麼顏色嗎？

Yes. Well, I'll tell you what. If you don't mind, Andrew, let me clear the topic a little bit more broadly because I think a lot of folks are interested in how people are thinking about '24. And again, I'm going to start by saying that just a few months ago, the optimism that we were seeing potentially for the second half of 2023 was viewed as a natural tailwind going into 2024.

是的。好吧，我會告訴你什麼。如果你不介意的話，安德魯，讓我更廣泛地澄清一下這個主題，因為我認為很多人都對人們如何看待「24」感興趣。首先，我首先要說的是，就在幾個月前，我們對 2023 年下半年可能看到的樂觀情緒被視為進入 2024 年的自然順風車。

Now in the absence of some of that macro strengthening that we hope that we might see by this point in the year, sitting here right now, we don't necessarily see a big snapback on the horizon for 2024. So we're not yet finalized with our planning assumptions for next year, but let me give a quick overview of how we're thinking about the market. We're monitoring all the typical stats that everyone in our sector would be, right? So U.S. housing starts, broadly speaking, on the new construction side, which is just under half of our business here in North America, the forecasts are broadly flattish next year, but we are potentially seeing a bit more of a shift back to single family. That could offer a little bit of a modest volume and mix tailwind for the door business.

現在，由於我們希望今年這個時候我們可能會看到一些宏觀經濟走強，所以現在坐在這裡，我們不一定會看到 2024 年出現大幅反彈。所以我們還沒有看到我們最終確定了明年的計劃假設，但讓我快速概述一下我們對市場的看法。我們正在監控我們行業中每個人的所有典型統計數據，對吧？因此，從廣義上講，美國的新房開工量僅占我們北美業務的一半以下，明年的預測大致持平，但我們可能會看到更多轉向單戶住宅。這可能會為門業業務帶來一定的銷售和混合動力。

On the RRR side, what you asked about specifically, this is an area where we still see a fair bit of uncertainty, and it's going to be dependent, in large part, on consumer confidence and existing home sales. As we sit here today, we're expecting that we could see a little bit of further modest decline in the RRR market. And then, I'll just close off by saying with respect to input costs, which is another area that folks are interested in understanding as we look ahead, commodities are likely to remain modestly deflationary, but we're still seeing cost increases elsewhere.

在存款準備率方面，您具體詢問的問題是，我們仍然看到相當多的不確定性，並且它將在很大程度上取決於消費者信心和現有房屋銷售。當我們今天坐在這裡時，我們預計存款準備率市場可能會進一步小幅下跌。然後，我最後要說的是關於投入成本，這是人們在展望未來時有興趣了解的另一個領域，大宗商品可能會保持適度的通貨緊縮，但我們仍然看到其他地方的成本增加。

So it's not as if we're expecting a broadly deflationary market to any significance in 2024. So I share all of those details just to kind of clear the deck right now on how we're thinking about 2024, would have provided this -- we're still working through our budget planning assumptions. We'll come back on the Q4 call and give more specificity about how we see those end markets trending and how that's going to inform our results next year.

因此，我們並不認為 2024 年市場會出現廣泛的通貨緊縮。因此，我分享所有這些細節只是為了澄清我們現在如何看待 2024 年，本可以提供這一點——我們仍在研究預算規劃假設。我們將回到第四季的電話會議，並更具體地說明我們如何看待這些終端市場的趨勢，以及這將如何影響我們明年的業績。

At the end of the day, though, in the face of what's a choppy end market, we're going to keep focusing on what we can control, right? That's price-cost discipline to preserve margins, it's driving product mix and commercializing new products to activate our strategy and focusing on working capital optimization to continue driving the really strong free cash flow generation you've seen from the business this year.

但歸根結底，面對動盪的終端市場，我們將繼續專注於我們可以控制的事情，對嗎？這是保持利潤率的價格成本紀律，它推動產品組合和新產品商業化，以激活我們的策略，並專注於營運資本優化，以繼續推動今年業務中真正強勁的自由現金流的產生。

And just one thing to add, Andrew, this is Howard. Trying to peg when this is going to start is the interesting part, but we are so confident in the long-term market fundamentals of the business. Housing is underbuilt, housing stock is aging, there's incremental home equity. So it's going to turn, and we feel very confident about that.

只需補充一件事，安德魯，這是霍華德。嘗試確定何時開始是有趣的部分，但我們對業務的長期市場基本面非常有信心。房屋建設不足，房屋存量老化，房屋淨值不斷增加。所以情況將會發生轉變，我們對此非常有信心。

The next question is coming from Mike Dahl of RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的麥克達爾。

This is Chris on for Mike. Just following up on the '24 comments. What's your expectation on margins looking to next year? I know you guys said potentially a little bit little less deflation, but just on a net price cost basis, are you assuming kind of net price-cost expansion in '24, what you're seeing today and potentially more challenged end market backdrop?

這是克里斯替麥克發言。只是跟進 '24 評論。您對明年的利潤率有何預期？我知道你們說通貨緊縮可能會稍微少一點，但僅在淨價格成本的基礎上，您是否假設24 年會出現某種淨價格成本擴張，你們今天所看到的情況以及可能面臨更多挑戰的終端市場背景？

Too early to call that one, Chris. As I commented just a moment ago, we're still finalizing planning assumptions for next year. And certainly, ahead of having those planning assumptions fully aligned, we're not going to be in a position to guide sitting here today in early November what margins look like next year. But I wanted to at least give the investment community a little bit of perspective on how we're thinking about end market demand next year. We'll come back in late February when we release our full year results and give you a lot more perspective on the drivers of margin for our business next year.

克里斯，現在說這還太早。正如我剛才所說，我們仍在敲定明年的計畫假設。當然，在這些規劃假設完全一致之前，我們無法在 11 月初坐在這裡指導明年的利潤率。但我想至少讓投資界了解我們如何考慮明年的終端市場需求。我們將在二月底發布全年業績，讓您對明年業務利潤率的驅動因素有更多的了解。

Again, I'll come back to the comments I made earlier about the team's very intent focus right now is on what you've heard us call as coiling the spring, right? It's maintaining very disciplined approach to price-cost management, executing the playbook to flex cost out of the business while continuing to invest in some of the growth initiatives that really unlock a lot of long-term value that Howard just indicated for our category. But we'll come back with more specifics on the near-term margin outlook for '24 next quarter.

再次，我將回到我之前發表的關於團隊現在非常專注的評論，即您聽到我們所說的“盤繞彈簧”，對吧？它保持非常嚴格的價格成本管理方法，執行劇本以降低業務成本，同時繼續投資於一些增長計劃，這些計劃真正釋放了霍華德剛剛為我們的類別指出的大量長期價值。但我們將在下個季度提供有關 24 世紀利潤率前景的更多具體資訊。

Understood. Appreciate that. And then just on the North American new residential construction side of the business, is there any way you could help ballpark what your multifamily exposure is? I mean realizing there's a mix shift to single-family from those expected declines, but just given the magnitude, just some sense of quantification there would be helpful.

明白了。感謝。然後，就北美新住宅建設業務而言，有什麼方法可以幫助您了解多戶型的風險狀況嗎？我的意思是意識到，預期的下降會出現向單戶住宅的混合轉變，但考慮到下降的幅度，一些量化的感覺會有所幫助。

Chris, this is Chris Ball here. I'll go ahead and take that. First off, if you zoom out the business, we're relatively evenly split between RRR and new construction. As you look at the new construction segment, it's more heavily weighted towards the single-family homes. We don't get clear data on which product goes into which segments, but I'd say the vast majority is going into the single-family homes. One of the bigger factors to consider, though, as you look into next year and you look into the very high multifamily starts that we've had in 2023, we do see that as a helpful tailwind for us as you have single family to be a higher percentage of the overall starts, that should be helpful for us as we go into next year and look at the new construction portion of our business that should be constructive for us or helpful for us.

克里斯，我是克里斯·鮑爾。我會繼續接受它。首先，如果你縮小業務範圍，我們在存款準備率和新建築之間的分配相對均勻。當你觀察新建築領域時，你會發現它更偏重於單戶住宅。我們沒有獲得關於哪種產品進入哪些細分市場的明確數據，但我想說絕大多數都進入了單戶住宅。不過，當你展望明年以及我們在2023 年的多戶住宅開工率非常高時，需要考慮的更大因素之一是，我們確實認為這對我們來說是一個有利的推動因素，因為你有單戶住宅整體開工率較高，這應該對我們有幫助，因為我們進入明年並研究我們業務的新建築部分，這對我們應該是建設性的或有幫助的。

The next question is coming from Steven Ramsey of Thompson Research Group.

下一個問題來自湯普森研究小組的史蒂文拉姆齊。

On Fleetwood's strong margin profile, do you consider that a normalized level, the 2024 outlook for Fleetwood. Is that a baseline to build off of? And then on the growth plans for that company, do you see that more in wholesale or retail? Just any color on where you intend to take that business over the next couple of years.

關於弗利特伍德強勁的利潤率狀況，您是否認為弗利特伍德 2024 年的前景處於正常化水平？這是建立的基線嗎？然後，關於該公司的成長計劃，您認為批發或零售的成長計劃更多嗎？任何顏色都可以表明您打算在未來幾年內開展該業務。

Steven, it's Russ. Maybe I'll take the first part of that, give you a little bit of perspective on the margin profile and the trajectory for the business. And then Howard or Chris could comment on growth opportunities for it. First of all, if you step back and look at Fleetwood over the last several years, the business has grown really nicely. From 2019 to 2022, their top line grew at a CAGR in the mid-teens, and they grew their margins, their EBITDA margins that is, from mid-teens to above 20% over that period.

史蒂文，我是拉斯。也許我會先講第一部分，給你一些關於利潤狀況和業務發展軌跡的看法。然後霍華德或克里斯可以評論它的成長機會。首先，如果你退後一步看看弗利特伍德在過去幾年中的情況，你會發現該業務成長得非常好。從 2019 年到 2022 年，他們的收入以十幾歲左右的複合年增長率增長，並且他們的利潤率（即 EBITDA 利潤率）在此期間從十幾歲左右增長到 20% 以上。

Now they had a really particularly strong year in 2023, just because they built up some backlog due to some supply constraints in 2022 that they were able to realize in 2023. So if you were to look at their margin profile in the last 12 months period, it was actually approaching a 30% range. We don't think that that's a normalized level necessarily. There's clearly some volume leverage in there. But they've also been very effective at taking price to the market in late 2022 that's continued to read through and that's in line with pricing some of their product lines in line with the luxury market that they serve. So that's what's informing our view that as we look into 2024, that revenue in, call it, the $150 million range and a low 20% EBITDA margin is probably a realistic near-term outlook for the business. But it's a really healthy platform from which we would expect further growth from there.

現在，他們在2023 年經歷了非常特別強勁的一年，只是因為他們由於2022 年的一些供應限製而積累了一些積壓，而他們能夠在2023 年實現這一目標。因此，如果您查看他們在過去12 個月期間的利潤狀況，實際上已經接近30%的範圍了。我們認為這不一定是正常化程度。顯然其中存在著一定的成交量槓桿。但他們在 2022 年底將價格推向市場方面也非常有效，這一定價與他們所服務的奢侈品市場的一些產品線定價相一致。因此，這就是我們的觀點，即當我們展望 2024 年時，1.5 億美元的收入和 20% 的 EBITDA 利潤率可能是該業務現實的近期前景。但這是一個非常健康的平台，我們預計會進一步成長。

And Steven, this is Chris. I'll take the second part of the question around where the growth comes from as we look forward on that business. First off, Fleetwood does participate in one of the top trends in our industry, which is this indoor, outdoor living. Now Howard referenced it when he covered that beautiful picture that shows the type of solutions you can get with Fleetwood products, with their door products and with their overall systems around the home. So it's very much on trend for what owners are looking for. .

史蒂文，這是克里斯。當我們展望該業務時，我將圍繞著成長來自何處來回答問題的第二部分。首先，弗利特伍德確實參與了我們行業的頂級趨勢之一，即室內外生活。現在，霍華德在介紹那張美麗的圖片時引用了它，該圖片展示了您可以使用 Fleetwood 產品、他們的門產品以及家庭周圍的整體系統獲得的解決方案類型。因此，它非常符合業主的需求。 。

The second piece is the product portfolio and offerings they have include leading-edge designs with a low-profile edge with, it's called, the EDGE product that they just recently launched. So very much kind of on the cutting edge of what architects are looking for and what builders are looking for.

第二部分是他們的產品組合和產品，包括具有低調邊緣的前沿設計，以及他們最近推出的 EDGE 產品。因此，它非常符合建築師和建築商的需求。

And then the third piece you asked around whether it was kind of a retail or wholesale, Fleetwood goes to market through a group of exclusive distributors that really partner with them on addressing the market needs and making sure they're out there, going after the builders who are having homeowners designing products that fit what Fleetwood brings to the market. So the growth comes not just from continuing those partnerships with those dealers, but also looking regionally. As we go and expand beyond the West Coast, where the majority of the volume is, we think there's a lot of fast-growing housing markets that again can benefit from those indoor, outdoor living trends that have a need for these products and then also are underpenetrated right now from a Fleetwood dealer standpoint.

然後，您問的第三個部分是零售還是批發，弗利特伍德透過一組獨家經銷商進入市場，這些經銷商真正與他們合作，解決市場需求並確保他們在那裡，追求建築商讓房主設計適合弗利特伍德推向市場的產品。因此，成長不僅來自於與這些經銷商的持續合作，也來自於區域性的關注。當我們向西海岸以外（大部分銷售集中在那裡）擴張時，我們認為有很多快速成長的房屋市場可以再次受益於那些需要這些產品的室內、室外生活趨勢，然後從弗利特伍德經銷商的角度來看，目前的滲透率還不夠。

That's great. And then thinking about the combination or juxtaposition maybe of shelf space gains that you may have gotten in the retail or wholesale channel this year, combined with most channels running light through this year given slower volume, curious just kind of on those 2 dynamics now and where you see that benefiting you in 2024, even if it's a continued challenge here?

那太棒了。然後考慮今年您可能在零售或批發渠道中獲得的貨架空間收益的組合或並置，再加上今年大多數渠道在銷量放緩的情況下運行緩慢，現在對這兩種動態感到好奇您認為這對2024 年您有什麼好處，即使這是一個持續的挑戰？

Yes. Steven, the way I'd answer that, this is Chris again, is if you really look at the places where we've looked at incremental distribution opportunities and going after some of the places where these life and living needs can be solved, our focus -- if you go back to our strategy and the 3 pillars, the product leadership and reliable supply foundations have opened up new opportunities for us, but it also is giving us the chance with the existing partners to go -- talk about how we solve the needs and how we can do things like the performance door system national rollout and ultimately then winning the sale with how we capture that demand through the end markets and through the channel. .

是的。史蒂文，我回答這個問題的方式是，我又是克里斯，如果你真的看看我們在尋找增量分配機會的地方，並尋找一些可以解決這些生活和生活需求的地方，我們的焦點- 如果你回到我們的策略和三大支柱，產品領先地位和可靠的供應基礎為我們開闢了新的機會，但它也給了我們與現有合作夥伴一起走的機會- 談談我們如何解決需求以及我們如何做諸如性能門系統全國推廣之類的事情，並最終透過我們如何透過終端市場和管道捕捉需求來贏得銷售。 。

And so when you look at both the wholesale and retail sides of our business, the joint business planning approach that we're taking with all of our customers is really the way that we're activating that and I'd use the proof points of the Vendor of the Year at both Home Depot and Lowe's as examples of how we're really going to be able to capture more of that demand, fill the demand through the market with our product leadership and win the sale and ultimately benefit both our channel partners as well as homeowners in the end.

因此，當您審視我們業務的批發和零售方面時，我們與所有客戶採取的聯合業務規劃方法實際上就是我們激活該方法的方式，我會使用以下證據點家得寶(Home Depot) 和勞氏(Lowe's ) 的年度供應商作為我們如何真正能夠捕獲更多需求、利用我們的產品領先地位滿足市場需求並贏得銷售並最終使我們的渠道受益的示例最終是合作夥伴以及房主。

The next question is coming from Joe Ahlersmeyer of Deutsche Bank.

下一個問題來自德意志銀行的喬‧阿勒斯邁爾。

Yes, interesting acquisition you're doing here with Fleetwood. It seems to me to be a pretty clear move outside of your core door category and kind of pushed the concentric circles outward of what even constitutes doors. Thinking about your Doors That Do More strategy, wondering if maybe it ought to be called more than doors that do more. And just maybe you could talk about that blurring of the lines a little bit. And as you go and look for new and other targets that may be doing similar things, what are the considerations, I guess, around identifying assets that you'll be able to integrate successfully. I would think at least one would maybe be the management team needs to be one that you feel you can retain? I'll just kind of let you run with that.

是的，您與弗利特伍德在這裡進行的有趣收購。在我看來，這是一個非常明顯的舉動，超出了你的核心門類別，並且有點將同心圓推到了門的外面。思考你的「多做事的門」策略，想知道是否應該稱之為「多做事的門」。也許你可以稍微談談界線的模糊。當你去尋找可能做類似事情的新目標和其他目標時，我想，圍繞著識別你將能夠成功整合的資產，有哪些考慮因素。我認為管理團隊中至少有一個是您認為可以保留的？我就讓你繼續吧。

Yes. Thanks, Joe. This is Howard. It is a great acquisition. We really like this business for a number of reasons. First, I think their strategy is very aligned with our Doors That Do More or as you've now coined it More Than Doors That Do More strategy. This is about developing innovative products and services and solving life and living problems, right? And you think about these products and you see some pictures, and I encourage you to go to their website, fleetwoodusa.com, this trend, macro trend, indoor, outdoor living, light, security, et cetera, these are premium luxury products that really support that innovation.

是的。謝謝，喬。這是霍華德。這是一次偉大的收購。我們非常喜歡這項業務，原因有很多。首先，我認為他們的策略與我們的「Doors That Do More」策略非常一致，或者正如您現在所創造的「More Than Doors That Do More」策略。這是開發創新產品和服務，解決生活和居住問題，對嗎？你想到這些產品，你會看到一些圖片，我鼓勵你去他們的網站，fleetwoodusa.com，這個趨勢，宏觀趨勢，室內、戶外生活，光，安全等等，這些都是優質的奢侈品，真正支持這種創新。

Two, it addresses a large patio door market that we play in today. Remember, when we talked at Investor Day, we participate in the hinge patio door market. We don't play in the vinyl sliding market, which we feel is much more competitive. But this is the high-end luxury side of that patio door market, which we see as a very interesting growth platform for us.

第二，它解決了我們今天所涉足的大型露台門市場。請記住，當我們在投資者日談論時，我們參與了鉸鏈露台門市場。我們不涉足乙烯基滑動市場，我們認為這個市場的競爭要激烈得多。但這是露台門市場的高端豪華方面，我們認為這對我們來說是一個非常有趣的成長平台。

Three, when you think about their products, and we think about good, better, best, and again, at Investor Day, we talked about the fact it's hard to sort of pinpoint what is a best door, there's a lot of good and there's a lot of better. I'd say that their product platform absolutely addresses this best. And it's one of the reasons why they can realize the margins that Russ just talked about, which we like.

第三，當你想到他們的產品時，我們會想到好、更好、最好，在投資者日，我們再次談到了這樣一個事實：很難確定什麼是最好的門，有很多好的東西，而且有很多東西。好多了。我想說他們的產品平台絕對能最好地解決這個問題。這也是他們能夠實現拉斯剛才談到的利潤的原因之一，我們喜歡這一點。

And then fourth, and obviously, the growth potential of this business with the high percentage of their revenue being on the West Coast with accretive margins to our business and accretive EPS in year 1, make this, we think, a really smart investment.

第四，很明顯，該業務的成長潛力，其收入的高比例來自西海岸，第一年我們的業務利潤率和每股收益不斷增加，這使得我們認為這是一項非常明智的投資。

Now when we talk about more than doors, 70% of their revenue is doors, and we talked about folding, hinged, sliding, pivot, et cetera. 30% are glass panels that are fixed, they don't move or windows systems that tie back to the doors. Typically, in fact, in almost every case, the windows are sold in conjunction with the door. The door is the highlight of this business, right? And the windows are sold secondary to sort of match the doors. So we still -- we're still going to call it the Doors That Do More strategy, Joe.

現在，當我們談論的不僅僅是門時，他們 70% 的收入是門，我們談論了折疊、鉸鏈、滑動、樞軸等。 30% 是固定的玻璃面板，它們不會移動，或窗戶系統與門相連。事實上，通常在幾乎所有情況下，窗戶都是與門一起出售的。門是這家店的亮點吧？窗戶是次要出售的，以與門相匹配。所以我們仍然——我們仍然將其稱為“做得更多的門”策略，喬。

Understood. That's fine by me. I'm glad you touched on the point around the high-end consumer. I don't think you have to look for this earnings season to find evidence that, that consumer continues to do better. And I'm just wondering if you feel like that's a trend that is likely to sustain for many years. Whenever R&R does sort of inflect back to growth, people have a lot of home equity and I would imagine that this sort of plays in line with that trend.

明白了。那個我能接受。我很高興你談到了高端消費者的問題。我認為你不必等到這個財報季才能找到消費者繼續表現更好的證據。我只是想知道您是否認為這種趨勢可能會持續多年。每當 R&R 確實恢復成長時，人們就會擁有大量的房屋淨值，我認為這種情況符合這種趨勢。

And then just bigger picture as well, as you think about skating where the puck is going with respect to M&A. I noticed some other things within this product assortment on this slide that include what seems to be hurricane protection. Just wondering how you're thinking about other attributes of products that are interesting to you?

然後還有更大的前景，當你考慮到併購方面的冰球走向時。我在這張投影片上註意到該產品分類中的一些其他內容，其中包括似乎是颶風防護的內容。只是想知道您如何看待您感興趣的產品的其他屬性？

Yes. So first of all, I completely agree with you that this particular consumer typically does better in all cycles, and that's important, and we certainly expect that to continue to be the case. As far as staking where the puck is going, when you think about the 2 acquisitions that we've completed this year, first Endura, which is the leading manufacturer of components that go around the door and really allow us to innovate door systems that, again, are better at keeping water out or better connectivity or better security, that was critical to our Doors That Do More strategy.

是的。首先，我完全同意你的觀點，即這個特定的消費者通常在所有周期中都表現得更好，這很重要，我們當然希望這種情況繼續下去。至於押注冰球的走向，當你想到我們今年完成的兩次收購時，首先是 Endura，它是門周圍組件的領先製造商，真正使我們能夠創新門系統，再次強調，能夠更好地防水、更好的連結性或更好的安全性，這對我們的「多做事之門」策略至關重要。

And this is an adjacency, if you will, into this patio space where we think it's a big market, $4 billion to $5 billion market. They're at the high end, but you can imagine that there could be some longer-term synergies in how we collaborate on sourcing and R&D and product development. So any company that fits this profile of allowing us to execute our strategy and continue to behave more like a consumer durable, a decommoditized consumer durable, that's going to be important to us as we look at future M&A.

如果你願意的話，這是一個毗鄰的露台空間，我們認為這是一個很大的市場，價值 40 億到 50 億美元的市場。它們處於高端，但你可以想像，我們在採購、研發和產品開發方面的合作方式可能會產生一些長期的協同效應。因此，任何符合這種特徵的公司，允許我們執行我們的策略，並繼續表現得更像耐用消費品，非商品化的耐用消費品，當我們考慮未來的併購時，這對我們來說非常重要。

The next question is coming from Jay McCanless of Wedbush Securities.

下一個問題來自韋德布希證券公司的傑伊·麥坎利斯。

So I'm just wondering why when you had the Investor Day on September 9 (sic) [September 19] and essentially had most of the quarter done, why not go ahead and release this information then about where you thought EBITDA was going to go, where you thought sales might end up given that you had the majority of the quarter in the bag already at that point.

所以我只是想知道為什麼當你在9 月9 日（原文如此）[9 月19 日] 投資者日並且基本上已經完成了本季度的大部分時間時，為什麼不繼續發布有關你認為EBITDA 將會去向的信息，您認為銷售可能會結束，因為此時您已經掌握了該季度的大部分時間。

Jay, it's Russ. I guess I'd answer that by saying that the purpose of an Investor Day is not to focus on the near term. The focus of the Investor Day is to focus on the long term and the strategy that our company is pursuing. And that is what we wanted to highlight on September 19 and what we did as opposed to getting too embroiled in the near-term outlook for the business, which is driven, let's face it, more by a choppy macro environment than where we're expecting to take the company long term.

傑伊，我是拉斯。我想我會回答說，投資者日的目的不是專注於短期。投資者日的重點是關注公司的長期發展和策略。這就是我們在9 月19 日想要強調的，也是我們所做的，而不是過多地捲入業務的近期前景，讓我們面對現實吧，這更多是由動蕩的宏觀環境驅動的，而不是我們所處的環境。期望讓公司長期發展。

The only thing I'd add, Jay, is that I'm really proud of the team, in light of the macro environment, for delivering. As Russ said earlier, we set guidance almost a year ago and we're within the guidance, right down in the middle on revenue, and we said maybe toward the lower end of EBITDA, but again, right in the middle of guidance set almost a year ago. So I don't think there's any real surprises there.

Jay，我唯一要補充的是，鑑於宏觀環境，我為團隊的交付感到非常自豪。正如拉斯早些時候所說，我們大約一年前製定了指導方針，我們處於指導方針之內，收入處於中間位置，我們說可能接近 EBITDA 的下端，但同樣，幾乎處於設定指導方針的中間一年前。所以我認為那裡沒有任何真正的驚喜。

Okay. What about the Fleetwood acquisition was more compelling to pay probably a higher valuation than where your stock price is right now versus buying back stock or looking at maybe something that you could have acquired a little cheaper.

好的。收購弗利特伍德（Fleetwood）更有吸引力的是，支付比你目前股價更高的估值，而不是回購股票或考慮一些你本來可以更便宜地收購的東西。

I sort of hit the key points of what we like about Fleetwood. There's a lot to like about this deal. And when you think about being able to acquire a very near adjacent asset that has very significant growth potential at accretive margins, potentially significantly accretive margins for a multiple that's very near where we historically trade, that felt like a very strategic and proper investment to us.

我有點抓住了我們喜歡弗利特伍德的關鍵點。這筆交易有很多值得喜歡的地方。當你考慮能夠收購一項非常接近的相鄰資產，該資產在利潤增值方面具有非常顯著的成長潛力，對於非常接近我們歷史交易水平的倍數來說，潛在的利潤增值可能非常顯著，這對我們來說是一項非常具有戰略意義和適當的投資。

Jay, it's Russ. I would just add this perspective also. As we discussed on the Investor Day, when we laid out the long-term deployment of the cash flow that we expected the business to generate, it continues to focus on 3 layers of capital deployment. Obviously, first and foremost is capital investment organically into the business; second, M&A; and third, returns to shareholders.

傑伊，我是拉斯。我也想加入這個觀點。正如我們在投資者日討論的那樣，當我們制定預期業務產生的現金流的長期部署時，它繼續關注 3 個層面的資本部署。顯然，首先也是最重要的是對業務進行有機的資本投資；第二，併購；第三，股東回報。

And we acknowledged at that time that there's a lot of firepower that we view over the next 4 years given the highly cash-generative nature of the business that we would be able to simultaneously fund all 3 layers of that strategy. And that is our intent today and will continue to be our intent.

當時我們承認，鑑於該業務具有高度現金生成的性質，我們認為未來 4 年將擁有大量火力，我們將能夠同時為該戰略的所有 3 個層面提供資金。這就是我們今天的意圖，並將繼續是我們的意圖。

While we didn't necessarily repurchase a lot of shares during the quarter, I'll just get in front of that one right now and remind everyone that just like individual share executions, company management is held to the standard of only repurchasing shares during an open window or subject to a 10b5-1 trading plan. And even during a window when you want to execute a 10b5-1 plan, if there is any information that counsel thinks is potentially material or nonpublic information, that does restrict your ability to be repurchasing shares. And given the degree of corporate development work underway at the business, including Fleetwood, our assessment of Architectural, et cetera, that did limit us somewhat in share repurchase execution over the quarter.

雖然我們不一定在本季度回購大量股票，但我現在就先講到這一點並提醒大家，就像個人股票執行一樣，公司管理層也遵循僅在季度期間回購股票的標準。打開窗口或遵守10b5-1 交易計劃。即使在您想要執行 10b5-1 計劃的窗口期間，如果律師認為有任何信息可能是重大或非公開信息，這確實會限制您回購股票的能力。考慮到該業務正在進行的企業發展工作的程度，包括弗利特伍德、我們對建築等的評估，這確實在一定程度上限制了我們本季股票回購的執行。

That doesn't mean that, that is not a continued priority for us going forward. And look at the cash generation power of the business. We commented -- I've commented during my prepared remarks that we're on track to meet or exceed the upper bound of our free cash flow guide for the year. At that upper bound, that would imply cash generation in excess of $11 a share this year. That's a low teens free cash flow yield. So I wouldn't want people to think that we're in any way diverging from our capital deployment plan because there's significant cash generation power in the business that we'll deploy across all 3 layers of the strategy, just as we discussed at Investor Day.

這並不意味著這不是我們未來的持續優先事項。看看企業的現金產生能力。我們評論說——我在準備好的評論中評論說，我們預計將達到或超過今年自由現金流指南的上限。按照這個上限，這意味著今年每股產生的現金將超過 11 美元。這是一個較低的青少年自由現金流收益率。因此，我不希望人們認為我們在任何方面偏離了我們的資本部署計劃，因為業務中具有巨大的現金生成能力，我們將在戰略的所有 3 層中進行部署，正如我們在投資者中討論的那樣天。

The next question is coming from Reuben Garner of Benchmark Company.

下一個問題來自 Benchmark 公司的 Reuben Garner。

You mentioned, I think you used the term competitiveness continuing in the fourth quarter. Can you talk about maybe which categories within doors? Is it exterior? Is it the more customized doors? Is it the commoditized ones? Where -- is it certain channels? Where are you seeing the most sort of competitive pressure from a pricing standpoint.

您提到，我認為您在第四季度使用了“持續競爭力”一詞。能談談室內有哪些類別嗎？是外部的嗎？是更訂製的門嗎？是商品化的嗎？哪裡——是某些管道嗎？從定價的角度來看，您在哪裡看到最大的競爭壓力。

Yes, Reuben, this is Howard. It's a cyclical market. Housing is cyclical. In down cycles, capacity is available. That's just natural. And then you have an option, all companies sort of have an option to either try to pick up volume with special pricing or to maintain margins. And some companies may need to pick up volume to keep their factories running, for example. But obviously, as a larger market leader, we find ourselves in a bit of a more unique position. And our belief is that more better off, our industry is better off, our shareholders are better off in the long run if we manage the business for price-cost and focused on maintaining margins.

是的，魯本，這是霍華德。這是一個週期性市場。住房是有周期性的。在下行週期中，容量是可用的。這很自然。然後你有一個選擇，所有公司都可以選擇要么嘗試以特殊定價來增加銷量，要么保持利潤率。例如，一些公司可能需要增加產量以維持工廠運作。但顯然，作為更大的市場領導者，我們發現自己處於更獨特的地位。我們相信，如果我們以價格成本管理業務並專注於維持利潤率，那麼從長遠來看，我們的行業會變得更好，我們的股東也會變得更好。

So that requires some short-term sacrifice and trade-offs in terms of volume, but we continue to believe it positions us to grow when the demand strengthens, which we know it's going to. So it's more in this commoditized area. Obviously, anything that's differentiated and really fundamental to our strategy, as we think about our strategy, it's really about decommoditizing this important category, which has already taken place in a lot of other building product categories, and we think now is the time for doors.

因此，這需要在數量方面做出一些短期犧牲和權衡，但我們仍然相信，當需求增強時，這將使我們能夠實現成長，我們知道需求將會增強。所以更多的是在這個商品化領域。顯然，任何對我們的策略具有差異性和真正基礎的東西，當我們考慮我們的策略時，它實際上是關於使這個重要類別去商品化，這已經發生在許多其他建築產品類別中，我們認為現在是時候推出門了。

Okay. That's helpful. And then as I think about the strong free cash flow this year, maybe help me with puts or takes going into next year? Are there still working capital opportunities? Anything else to think about? Would you lean into capital investments even in an uncertain environment in '24, just given your positive outlook longer term?

好的。這很有幫助。然後，當我想到今年強勁的自由現金流時，也許可以幫助我明年的看跌期權或看跌期權？是否還有營運資金機會？還有什麼要考慮的嗎？即使在 24 年充滿不確定性的環境中，只要您對長期前景持樂觀態度，您是否會傾向於資本投資？

Yes, Reuben, it's Russ. I'll take that one. The working capital initiatives that we've launched this year will continue to have some power in 2024. This is not kind of a one and done initiative. And the initiatives are balanced across all areas. We've harmonized payment terms to maximize our accounts receivable realization. We've also harmonized and linked in our payment terms to maximize AP. And we're looking at where we properly deploy inventory across the network to bring inventory levels down overall.

是的，魯本，我是拉斯。我會接受那個。我們今年推出的營運資本計畫將在 2024 年繼續發揮一定作用。這不是一勞永逸的計畫。這些舉措在各個領域都是平衡的。我們統一了付款條件，以最大限度地實現應收帳款。我們還協調並連結了我們的付款條款，以最大限度地提高 AP。我們正在研究在整個網路中正確部署庫存的位置，以整體降低庫存水準。

That all had a meaningful impact on the record operating cash flow that you saw this year. But we see some of those initiatives, which were implemented in many cases, by the way, until middle of this year as continuing to have tailwind into next year. So whereas, as I commented on the call, we brought our core working capital down from 24% last year at this time to about 20% now, we see a pathway to bring it down further to the high teens in 2024. So again, we'll comment on that more when we discuss our guidance for 2024 and how we see free cash flow trending for next year when we give our guide at the February call.

這一切都對今年創紀錄的營運現金流產生了重大影響。但順便說一句，我們看到其中一些舉措在許多情況下都已實施，直到今年年中，這些舉措在明年仍將繼續發揮作用。因此，正如我在電話會議上評論的那樣，我們將核心營運資本從去年的24% 降低到了現在的20% 左右，但我們看到了在2024 年將其進一步降低到十幾歲的途徑。所以再說一次，當我們討論 2024 年的指導以及我們在 2 月的電話會議上提供指導時如何看待明年的自由現金流趨勢時，我們將對此進行更多評論。

Great. Congrats on the strong execution in a tough environment, guys, and good luck to the remainder of the year.

偉大的。夥伴們，恭喜你們在艱難的環境中表現出色，祝今年餘下的時間一切順利。

At this time, I'd like to turn the floor back over to Mr. Heckes for closing comments.

現在，我想把發言權交還給赫克斯先生以供結束發言。

Thank you, Donna, and thanks for everybody for joining us today. We appreciate your interest and continued support, and this concludes our call. Operator, will you please provide the replay instructions.

謝謝你，唐娜，也謝謝大家今天加入我們。感謝您的關注與持續支持，我們的通話到此結束。接線員，請提供重播說明。

Thank you for joining Masonite's Third Quarter 2023 Earnings Conference Call. This conference call has been recorded. The replay may be accessed until November 22. To access the replay, please dial 877-660-6853 in the U.S. or 201-612-7415 outside of the U.S., enter conference ID number 13741587. Thank you. Ladies and gentlemen, you may enjoy the rest of your day.

感謝您參加 Masonite 2023 年第三季財報電話會議。本次電話會議已錄音。重播可在 11 月 22 日之前觀看。要觀看重播，請在美國撥打 877-660-6853，在美國境外撥打 201-612-7415，輸入會議 ID 號 13741587。謝謝。女士們先生們，您可以享受這一天剩下的時間。