Griffon Corp (GFF) 2024 Q3 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to the Griffon Corporation fiscal Q3 2024 earnings conference call.

女士們、先生們，早安，歡迎參加 Griffon Corporation 2024 年第三季財報電話會議。

(Operator Instructions)

（操作員說明）

And it is now my pleasure to introduce your host, Brian Harris, Chief Financial Officer.

現在我很高興向您介紹主持人，財務長布萊恩哈里斯 (Brian Harris)。

Please go ahead, sir.

請繼續，先生。

Thank you.

謝謝。

Good morning.

早安.

It's my pleasure to welcome everyone to Griffon Corporation's, -- excuse me.

我很高興歡迎大家來到格里芬公司，--對不起。

Good morning, welcome to Griffon Corporation's third quarter 2024 earnings call.

早安，歡迎參加 Griffon Corporation 2024 年第三季財報電話會議。

Joining me for this morning's call is Ron Kramer, Griffon's Chairman and Chief Executive Officer.

與我一起參加今天早上電話會議的是 Griffon 董事長兼執行長 Ron Kramer。

Our press release issued earlier this morning and is available on our website at www.griffon.com.

我們的新聞稿於今天早上早些時候發布，可在我們的網站 www.griffon.com 上取得。

Today's call is being recorded and the replay instructions are included in our earnings release.

今天的電話會議正在錄音，重播說明包含在我們的財報中。

Our comments will include forward-looking statements about difference performance.

我們的評論將包括有關差異表現的前瞻性陳述。

These statements are subject to risks and uncertainties that can change as the world changes.

這些陳述存在風險和不確定性，這些風險和不確定性可能會隨著世界的變化而變化。

Please see the cautionary statements in today's press release and in our SEC filings.

請參閱今天的新聞稿和我們向 SEC 提交的文件中的警告聲明。

Finally, from today's remarks, we'll adjust for items that affect comparability between periods.

最後，根據今天的發言，我們將對影響期間之間可比較性的項目進行調整。

These items are explained in our non-GAAP reconciliations included in our press release.

這些項目在我們的新聞稿中包含的非公認會計原則調節中進行了解釋。

With that, I will turn the call over to Ron.

這樣，我就把電話轉給羅恩。

Good morning, everyone, and thanks for joining us.

大家早安，感謝您加入我們。

Our third quarter results were highlighted by strong operating performance from both of our segments with Home and Building Products, generating EBITDA margin of 30.1% and Consumer and Professional Products improving its EBITDA margin by 230 basis points to 8.8%.

我們第三季業績的亮點是家居和建築產品兩個部門的強勁營運業績，產生 30.1% 的 EBITDA 利潤率，而消費品和專業產品部門的 EBITDA 利潤率提高了 230 個基點，達到 8.8%。

With third quarter performance, in line with our expectations in both segments performing well as we approach the end of fiscal 2024, we are reiterating our previously provided segment adjusted EBITDA guidance of $555 million for the full year.

鑑於第三季的業績，符合我們對 2024 財年末兩個部門表現良好的預期，我們重申先前提供的全年部門調整後 EBITDA 指引為 5.55 億美元。

Free cash flow in the quarter was also strong at $120 million and continues to support our capital allocation strategy.

本季的自由現金流也很強勁，達到 1.2 億美元，繼續支持我們的資本配置策略。

During the quarter, we paid down $80 million in debt, repurchased $19 million in stock and paid a $7 million regular quarterly dividend.

本季度，我們償還了 8,000 萬美元的債務，回購了 1,900 萬美元的股票，並支付了 700 萬美元的定期季度股息。

Yesterday, our Board authorized a regular quarterly dividend of $0.15 per share payable on September 19 to shareholders of record on August 28 marking the 52nd consecutive quarterly dividend to shareholders.

昨天，我們的董事會授權於 9 月 19 日向 8 月 28 日登記在冊的股東派發每股 0.15 美元的定期季度股息，這是連續第 52 個季度向股東派發股息。

Our dividend has grown at an annualized compounded rate of 18% since we initiated dividends in 2012.

自 2012 年開始派息以來，我們的股息以 18% 的年化複合率成長。

Looking at our share buyback program since April 2023 and through June of this year, we've repurchased 7.9 million shares at an average price of $45.38 a share for a total of $357 million.

看看我們自 2023 年 4 月以來到今年 6 月的股票回購計劃，我們以每股 45.38 美元的平均價格回購了 790 萬股股票，總計 3.57 億美元。

These repurchases have reduced Griffon's outstanding shares by 13.7% relative to the total shares outstanding at the end of the second quarter of fiscal 2023.

這些回購使 Griffon 的流通股相對於 2023 財年第二季末的流通股總數減少了 13.7%。

These actions underscore our commitment to capital allocation strategy that delivers value to our shareholders.

這些行動強調了我們對為股東創造價值的資本配置策略的承諾。

We continue to believe that our stock is a compelling value.

我們仍然相信我們的股票具有令人信服的價值。

I'll turn it over to Brian for a little more financial detail.

我會將其交給布萊恩以獲取更多財務細節。

Thanks Ron, third quarter revenue of $648 million decreased by 5% and adjusted EBITDA before unallocated amount for $141 million decreased by 8% growth in comparison to the prior year quarter.

感謝羅恩，第三季營收為 6.48 億美元，與去年同期相比下降了 5%，調整後未分配金額之前的 EBITDA 為 1.41 億美元，下降了 8%。

EBITDA margin before unallocated was 21.7%.

未分配前的 EBITDA 利潤率為 21.7%。

Gross profit on a GAAP basis for the quarter were $249 million compared to $275 million in the prior year quarter, excluding items that affect comparability from the current and prior period.

以 GAAP 計算，本季毛利為 2.49 億美元，去年同期毛利為 2.75 億美元，不包括影響本期及上期可比性的項目。

Gross profit was $265 million in the current quarter compared to $276 million in the prior year.

本季毛利為 2.65 億美元，去年同期毛利為 2.76 億美元。

Normalized gross profit increased year over year by margin by 50 basis points to 40.9%.

標準化毛利年增50個基點至40.9%。

Third quarter GAAP selling, general and administrative expenses were $160 million compared to $172 million in the prior year.

第三季 GAAP 銷售、一般和管理費用為 1.6 億美元，去年同期為 1.72 億美元。

Excluding adjusting items from both periods, SG&A expenses were $155 million or 23.9% of revenue compared to the prior year of also $155 million or 22.7% of revenue.

排除這兩個時期的調整項目，SG&A 費用為 1.55 億美元，佔營收的 23.9%，而前一年也為 1.55 億美元，佔營收的 22.7%。

Third quarter GAAP net income was $41 million or $0.84 per share compared to $49 million in the prior year quarter, or $0.9 per share.

第三季 GAAP 淨利為 4,100 萬美元，即每股 0.84 美元，而去年同期淨利為 4,900 萬美元，即每股 0.9 美元。

Excluding items that affect comparability from both periods, current quarter adjusted net income was $61 million or $1.24 per share compared to the prior year of $70 million or $1.29 per share.

排除影響兩個時期可比性的項目，本季調整後淨利潤為 6,100 萬美元，即每股 1.24 美元，而前一年為 7,000 萬美元，即每股 1.29 美元。

Corporate unallocated expenses, excluding depreciation in the quarter were $15 million compared to $14 million in the prior year quarter.

本季公司未分配費用（不含折舊）為 1,500 萬美元，去年同期為 1,400 萬美元。

With the increase primarily due to increased ESOP expense driven by the rise in Griffon stock price.

增加的主要原因是 Griffon 股價上漲導致 ESOP 費用增加。

Net capital expenditures were $2.3 million in the third quarter compared to $8.3 million in the prior year quarter.

第三季淨資本支出為 230 萬美元，去年同期為 830 萬美元。

Depreciation and amortization totaled $15.2 million for the third quarter compared to $15.7 million in the prior year.

第三季折舊和攤銷總額為 1,520 萬美元，而去年同期為 1,570 萬美元。

Regarding our segment performance Home and Building Products.

關於我們的家居和建築產品部門業績。

Revenue declined 2% due to unfavorable product mix.

由於不利的產品組合，收入下降了 2%。

With increased residential volume being offset by decreased commercial volume.

住宅數量的增加被商業數量的減少所抵消。

HBP adjusted EBITDA of $119 million decreased 12% from the prior year, driven by reduced revenue as noted above and increased steel, labor and distribution costs.

HBP 調整後 EBITDA 為 1.19 億美元，較上年下降 12%，原因是上述收入減少以及鋼鐵、勞動力和分銷成本增加。

EBITDA margin for the quarter was 30.1%.

本季 EBITDA 利潤率為 30.1%。

Consumer Professional Products revenue of $254 million decreased 10% from the prior year quarter, primarily due to reduced consumer demand in North America, partially offset by increased volume in Australia.

專業消費產品收入為 2.54 億美元，較去年同期下降 10%，主要是由於北美消費者需求減少，但部分被澳洲銷售增加所抵銷。

For the current quarter CPP adjusted EBITDA of $22 million increased 22% from the prior year quarter due to improved North American production costs and decreased discretionary spending, partially offset by the unfavorable impact of the reduced rock volume noted above.

由於北美生產成本改善和可自由支配支出減少，本季 CPP 調整後 EBITDA 為 2,200 萬美元，較上年同期成長 22%，部分抵銷了上述岩石產量減少的不利影響。

CPP EBITDA margin improved 230 basis points to 8.8% compared to the prior year third quarter.

與去年第三季相比，CPP EBITDA 利潤率提高了 230 個基點，達到 8.8%。

Our global sourcing expansion initiative remains on time and on budget.

我們的全球採購擴張計劃仍然按時、按預算進行。

Also of note, on July 1, we completed the acquisition of Pope, an Australian provider of residential watering products from the Toro Company.

另外值得注意的是，7 月 1 日，我們完成了從 Toro 公司收購澳洲住宅澆水產品供應商 Pope。

Pope is an extremely well regarded Australian brand with 100 year history, and we are excited to add both to our portfolio of iconic products in the Australian market.

Pope 是一個備受推崇的澳洲品牌，擁有 100 年的歷史，我們很高興將這兩個品牌添加到我們在澳洲市場的標誌性產品組合中。

We expect both to contribute approximately $25 million in annual sales to AMES Australia.

我們預計兩家公司將為 AMES Australia 貢獻約 2500 萬美元的年銷售額。

Regarding our balance sheet and liquidity.

關於我們的資產負債表和流動性。

As of June 30, 2024, we had net debt of $1.37 billion and net debt to EBITDA leverage of 2.7 times calculated based on our debt covenants.

截至 2024 年 6 月 30 日，我們的淨債務為 13.7 億美元，根據我們的債務契約計算，淨債務與 EBITDA 槓桿率為 2.7 倍。

Regarding our guidance, I'd like to remind everyone we raised our expectations for fiscal 2024 last quarter and after our strong performance in the first half.

關於我們的指導，我想提醒大家，在上半年表現強勁之後，我們上季度提高了對 2024 財年的預期。

As Ron touched on earlier, given that our third quarter performance was in line with our expectations, we are reiterating our 2024 guidance, including revenue of $2.65 billion and segment adjusted EBITDA of $555 million, which excludes unallocated costs and certain other charges that affect comparability.

正如Ron 早些時候提到的，鑑於我們第三季度的業績符合我們的預期，我們重申2024 年的指導，包括26.5 億美元的收入和5.55 億美元的部門調整後EBITDA，其中不包括未分配成本和影響可比性的某些其他費用。

Our other expectations for 2024 also remain unchanged, including corporate costs of $59 million, amortization of $22 million, depreciation of $41 million, interest expense of $103 million and normalized tax rate of 28% and free cash flow to exceed net income.

我們對 2024 年的其他預期也保持不變，包括企業成本 5,900 萬美元、攤銷 2,200 萬美元、折舊 4,100 萬美元、利息支出 1.03 億美元、標準化稅率 28% 以及自由現金流超過淨利潤。

Now I'll turn the call back over to Ron.

現在我會把電話轉回給羅恩。

Thank you, Brian.

謝謝你，布萊恩。

Our year to date results have been driven by strong operating performance from both of our segments despite a challenging macroeconomic backdrop, HBP's sustain 30% plus EBITDA margins and has increased residential door volume, which has offset some of the softness we're seeing in the commercial market.

儘管宏觀經濟背景充滿挑戰，但我們今年迄今的業績是由兩個部門的強勁營運業績推動的，HBP 的EBITDA 利潤率維持在30% 以上，並增加了住宅門量，這抵消了我們在市場中看到的一些疲軟。

At CPP, we are realizing the early benefits from our global sourcing expansion strategy as evidenced by CPP's improving margin profile.

在 CPP，我們正在實現全球採購擴張策略的早期效益，CPP 不斷改善的利潤率就是證明。

Profitability continues to improve despite a backdrop of persistently weak consumer demand, which has resulted in reduced sales volumes.

儘管消費者需求持續疲軟，導致銷售減少，但獲利能力仍持續改善。

I want to reiterate that we will continue to use our strong operating performance and free cash flow to drive a capital allocation strategy that's focused on delivering long-term value for our shareholders.

我想重申，我們將繼續利用我們強勁的經營業績和自由現金流來推動專注於為股東創造長期價值的資本配置策略。

Before we start taking questions, I also want to acknowledge the effort and commitment our employees and management teams of all the businesses around the world continue to demonstrate.

在我們開始回答問題之前，我還要感謝我們的員工和世界各地所有企業的管理團隊繼續表現出的努力和承諾。

It's because of their dedication and effort that Griffon continues to see such strong operating performance.

正是由於他們的奉獻和努力，Griffon 得以持續維持如此強勁的經營業績。

Operator, we're ready for questions.

接線員，我們準備好回答問題了。

Thank you.

謝謝。

Ladies and gentlemen, we will now be conducting a question-and-answer session.

女士們、先生們，我們現在將進行問答環節。

(Operator Instructions)

（操作員說明）

Tim Wojs, Baird.

提姆·沃伊斯，貝爾德。

Hey, everybody, good morning.

嘿，大家早安。

Maybe just to start off with Home and Building Products.

也許只是從家居和建築產品開始。

I'm just kind of curious, sequentially, if you've seen much change in kind of the demand environment on it seems like the residential business kind of continues to kind of be a little bit better on commercial.

我只是有點好奇，如果你看到需求環境發生了很大的變化，那麼似乎住宅業務在商業方面繼續好一點。

I think it still down year over year.

我認為它仍然逐年下降。

Just trying to understand if anything's kind of incrementally getting better or worse?

只是想了解是否有任何事情逐漸變得更好或更糟？

And then maybe if you can add a little bit color around what the mix headwinds were, that'd be helpful.

然後也許如果你可以在混合逆風的周圍添加一點顏色，那會很有幫助。

I think the big takeaways, things are steady and the margin story for us is shown its resiliency on the residential business.

我認為最大的收穫是，情況穩定，我們的利潤率故事顯示了住宅業務的彈性。

Repair and remodel for us continues to be excellent and the commercial business, as is always a lumpy new business.

我們的維修和改造仍然非常出色，而商業業務始終是一項不穩定的新業務。

We saw a trend and going from May to June of slowing down, go back to go things looking better in July the outlook for the year remains the same, and the outlook for the future of the business remains excellent.

我們看到了從 5 月到 6 月放緩的趨勢，7 月情況看起來更好，今年的前景保持不變，業務的未來前景仍然良好。

As I think the housing market recovery is still in front of us and as interest rates come down as new home construction picks up and part of the growth on the residential, I still think is ahead of us.

我認為房地產市場的復甦仍然就在我們面前，而且隨著新房屋建設的回升和住宅增長的一部分，利率下降，我仍然認為我們仍然在前面。

Brian, you want to add to that.

布萊恩，你想補充一下。

I think you summarized it well.

我覺得你總結得很好。

Maybe just the mix piece, Brian,

也許只是混音，布萊恩，

Yeah.

是的。

The mix you're seeing is the are the commercial versus residential mix with commercial down slightly and residential improving.

您看到的混合是商業與住宅的混合，商業略有下降，住宅有所改善。

So that's that dynamic.

這就是動態。

Got you.

明白你了。

Okay.

好的。

And then just my follow-up on free cash flow and kind of the capital allocation strategy.

然後是我對自由現金流和資本配置策略的後續行動。

I noticed you did a little bit more debt reduction this quarter than what you've done in the prior few quarters?

我注意到你們本季減少的債務比前幾季多了一些？

And any change in kind of the philosophy of buybacks versus debt paydown on a go-forward basis.

以及未來回購與債務償還理念的任何變化。

No I think we have the flexibility to do both buybacks, debt reduction and acquisitions are always in our pipeline and during this quarter we didn't do any.

不，我認為我們可以靈活地進行回購、債務削減和收購一直在我們的計劃中，但在本季度我們沒有做任何事情。

Yeah, I was just I would point out that we had $200 million of buybacks during the year and then this quarter with cash flow, we just chose to reduce database.

是的，我只是想指出，我們今年進行了 2 億美元的回購，然後本季有了現金流，我們只是選擇減少資料庫。

Bob Labick, CJS Securities.

拉比克 (Bob Labick)，CJS 證券公司。

Good morning.

早安.

Thanks for taking our questions.

感謝您回答我們的問題。

Hi, Bob.

嗨，鮑伯。

So wanted to start with CPP and the global sourcing continued steady progress on margins sequentially and year over year.

因此，我想從 CPP 開始，全球採購的利潤率連續且逐年穩定成長。

So it's working as executed.

所以它按照執行的方式工作。

Any heavy lifting left or is this more gradual transition over the next few several quarters to get to the full benefits and any changes that you're in, your thoughts on that end goal of 15% for them, and your time frame?

是否還剩下繁重的工作，或者是在接下來的幾個季度中進行更漸進的過渡，以實現全部收益和您所處的任何變化，您對他們15% 的最終目標的想法以及您的時間框架？

There is no change in our 15% long-term target for the business and the heavy lifting has been done.

我們 15% 的長期業務目標沒有改變，繁重的工作已經完成。

We've shut the facilities.

我們已經關閉了設施。

We've rightsized the business this really is a very encouraging for us, and we announced this over a year ago and the execution of our team has been excellent.

我們對業務進行了調整，這對我們來說確實是一個非常令人鼓舞的消息，我們在一年前就宣布了這一點，我們團隊的執行力非常出色。

The performance is pointing in the direction that we're going and the asset light model for the US business to follow the global sourcing business that we already have in place for both our Australian business and our Hunter business in the US, it was the right direction for us.

業績指明了我們前進的方向，美國業務的輕資產模式將遵循我們已經為澳洲業務和美國亨特業務建立的全球採購業務，這是正確的為我們指明方向。

The performance metrics that we laid out, we were going down the path as we expected, and we continue to believe this is a 15% margin business in the future.

根據我們制定的績效指標，我們正在沿著預期的方向前進，我們仍然相信未來的業務利潤率為 15%。

I would just add to that right now we're selling inventory that we've manufactured that will continue into early next year.

我想補充一點，現在我們正在銷售我們製造的庫存，並將持續到明年初。

Fiscal '25 and over the course of '25, that shift will occur from manufactured inventory to source inventory and our margins will improve with it.

25 財年以及整個 25 年期間，這種從製造庫存到源庫存的轉變將會發生，我們的利潤率將隨之提高。

Okay, super.

好吧，超級。

And then on doors, just taking kind of a step back.

然後在門上，只是後退了一步。

Obviously, I think you guys had said this, but you've continued to stay above 30% and outperform.

顯然，我認為你們已經說過這​​一點，但你們繼續保持在 30% 以上並且表現出色。

There's been a ton of change in the industry since COVID, there were some supply disruptions, stay-at-home home picks up your house pricing demand, et cetera.

自從新冠疫情爆發以來，該行業發生了許多變化，出現了一些供應中斷、留在家中增加了房價需求等等。

But you guys both on the commercial side and on the residential side have been gaining share.

但商業方面和住宅方面的份額都在增加。

So the question is talk about how Clopay and CornellCookson are differentiated in the industry now.

那麼問題來了，Clopay和CornellCookson現在在業界是如何差異化的呢？

The changes over the past four or five years and how they're positioned to continue to grow and gain share in this market?

過去四到五年發生的變化以及他們如何定位以繼續成長並在這個市場中獲得份額？

Sure.

當然。

So I'll start with the fact that we have come up with many, many innovative products, purchasing CornellCookson and integrating it with Clopay has made us much stronger in the commercial market.

所以我首先要說的是，我們已經推出了很多很多創新產品，購買 CornellCookson 並將其與 Clopay 整合使我們在商業市場上變得更加強大。

We continue to have excellent execution in our operations and we have industry-leading lead times.

我們在營運中繼續保持出色的執行力，並擁有業界領先的交貨時間。

We have our own freight to deliver products to ensure they get to their dealers and our customers safely and in proper form.

我們有自己的貨運公司來運送產品，以確保它們以適當的形式安全地到達經銷商和我們的客戶手中。

We have an excellent dealer network that is able to execute on installations and all these things together, put us in a very strong position.

我們擁有優秀的經銷商網絡，能夠執行安裝和所有這些工作，使我們處於非常有利的地位。

Sam Darkatsh, Raymond James.

山姆達卡特什，雷蒙德詹姆斯。

Good morning, Ron.

早安，羅恩。

Good morning, Brian.

早安，布萊恩。

How are you?

你好嗎？

Good Morning.

早安.

Couple of questions of first as it relates to HBP and your steel related costs, I'm guessing because of the lag between when what we see in the prevailing markets and when it hits your P&L, I'm guessing the third quarter you just reported had steel headwinds.

首先有幾個問題，因為它與HBP 和你們的鋼鐵相關成本有關，我猜是因為我們在現行市場中看到的情況和它影響你們的損益表之間存在滯後，我猜是你們剛剛報告的第三季遇到了鋼鐵逆風。

And then I'm guessing beginning in the fourth quarter and into the first quarter, there are steel tailwinds.

然後我猜測從第四季開始到第一季，將會出現鋼鐵順風。

First off, is that accurate?

首先，這準確嗎？

And secondly, can you quantify or put a little bit of some meat on the bone in terms of the impacts of steel?

其次，你能量化或在鋼鐵的影響上加一點肉嗎？

And then I've got a follow-up.

然後我有一個後續行動。

Thanks.

謝謝。

I'll start by saying yes, it's entirely accurate.

首先我要說的是，這是完全正確的。

As far as the impact, we saw a couple of hundred basis points impact from the steel.

就影響而言，我們看到鋼材產生了幾百個基點的影響。

We knew it was coming and actually discussed it last quarter.

我們知道它即將到來，並且實際上在上個季度進行了討論。

And then my follow up you made the pulp acquisition.

然後我跟進你進行了紙漿收購。

I know it's relatively small but strategic, Ron, what was the genesis of how that deal came together and what I'm getting at with the question is, I know you mentioned that you have a pipeline of M&A targets that you continually look at, but what's the likelihood of further M&A over the near to intermediate term versus, let's say, continued share repurchase.

我知道它相對較小，但具有戰略意義，羅恩，這筆交易的起源是什麼，我要解決的問題是，我知道您提到您有一系列併購目標，您會不斷關注，但是，與持續股票回購相比，中短期內進一步併購的可能性有多大？

Thanks.

謝謝。

We are very attuned to looking for things that are value enhancing and add to our portfolio.

我們非常願意尋找能夠提升價值並添加到我們的投資組合中的東西。

So transactions like Pope are the kinds of deals that carve outs are we've got a long history of buying and improving businesses that have come into our broader portfolio in both HBP and CPP.

因此，像 Pope 這樣的交易是我們在收購和改善業務方面有著悠久歷史的交易，這些業務已納入我們在 HBP 和 CPP 的更廣泛的投資組合中。

So things that allow us to expand product and geography and that are financially accretive to us are things that we want to be doing.

因此，那些能夠讓我們擴大產品和地理範圍並為我們帶來經濟效益的事情是我們想做的事情。

Nothing is as cheap as our own stock right now, and we have -- to your point about what to expect from us.

目前沒有什麼比我們自己的股票更便宜的了，而且我們已經——按照您的觀點，了解我們對我們的期望。

We like the position of our businesses, the free cash flow getting generated our ability to both buy back stock and delever.

我們喜歡我們的業務狀況，喜歡我們回購股票和去槓桿化的能力所產生的自由現金流。

And with things that are immediately accretive and value enhancing like Pope, we're not afraid to add to the portfolio.

對於像 Pope 這樣能立即增值和增值的東西，我們並不害怕添加到投資組合中。

But the cheapest thing we see right now is the price of our own stock.

但我們現在看到的最便宜的東西是我們自己的股票的價格。

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Good morning.

早安.

This is Alex Hammond on for Julio, thanks for taking questions.

我是亞歷克斯·哈蒙德 (Alex Hammond) 為胡里奧 (Julio) 發言，感謝您提出問題。

Good Morning Alex.

早安，亞歷克斯。

And first question, just following up on the HBP, do you think there was any pull forward from last quarter or deferrals to the fourth quarter?

第一個問題，就 HBP 而言，您認為上季度是否有任何拉動或推遲到第四季度？

Nothing that I'm aware of, demand on the residential side continues to be very strong.

據我所知，住宅方面的需求仍然非常強勁。

And as we mentioned earlier, there's some softness on the commercial side but overall, the business is in very good position.

正如我們之前提到的，商業方面存在一些疲軟，但總體而言，業務狀況非常好。

Great Brian.

偉大的布萊恩。

Thank you.

謝謝。

And then my follow-up on CPP, could you provide an update in the inventory destocking across channels and geographies?

然後我對 CPP 進行後續跟進，您能否提供跨渠道和跨地區庫存去庫存的最新情況？

Sure.

當然。

So the inventory situation in the UK, we still see high inventory in the channel there.

因此，就英國的庫存情況而言，我們仍然看到渠道中的庫存很高。

Australia and Canada are reasonably normal.

澳洲和加拿大是相當正常的。

And in the US, there is somewhat higher inventory than usual, but the destocking over the quarter, and we expect that to continue in the fourth quarter is bring that level to a more normalized level.

在美國，庫存略高於平時，但本季的庫存去化，我們預計第四季度的去庫存將繼續使該水準達到更正常化的水準。

Thank you.

謝謝。

(Operator Instructions) Justin Bergner, Gabelli Funds.

（操作員指示）Justin Bergner，Gabelli Funds。

Good morning, Ron.

早安，羅恩。

Good morning, Brian.

早安，布萊恩。

Good morning Justin.

早安賈斯汀。

Two questions.

兩個問題。

With respect to mix, are you seeing any mix headwinds within residential customers trading down more in the portfolio?

就組合而言，您是否看到住宅客戶在投資組合中交易更多時遇到任何組合阻力？

On balance, no.

總的來說，沒有。

But between the dealer channel continues to be good mix and we see slight buy down in the retail channel.

但經銷商通路之間的組合仍然良好，我們看到零售通路的購買量略有下降。

Got it.

知道了。

And then with respect to CPP you mentioned that the results were in line with your expectations.

然後關於 CPP，您提到結果符合您的預期。

Does that hold true for the sales in CPP because it seemed like they were fairly light and then that lightness, how much of that is in demand versus further destocking, any sense?

這是否適用於 CPP 的銷售，因為它們似乎相當清淡，然後這種清淡，與進一步去庫存相比，需求量有多少，有任何意義嗎？

On balance, our overall revenue met our expectations.

總的來說，我們的整體收入符合我們的預期。

CPP was a little lighter than we originally expected as the consumer continues to be weak.

由於消費者持續疲軟，CPP 略低於我們最初的預期。

And it's really a combination of that inventory and the consumer that's causing that weakness.

造成這種疲軟的其實是庫存和消費者的共同作用。

Thank you.

謝謝。

Ladies and gentlemen, this concludes our question-and-answer session.

女士們先生們，我們的問答環節到此結束。

I would now hand the conference over to Ron Kramer, CEO for closing comments.

現在我將把會議交給執行長 Ron Kramer 發表總結評論。

We're very pleased with the quarter our performance here to get date and our outlook for the future.

我們對本季的表現感到非常滿意，以獲取數據和對未來的展望。

Thank you, and we look forward to speaking to you in November.

謝謝您，我們期待在 11 月與您交談。

Conference of Griffon Corporation has now concluded.

Griffon公司的會議現已結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect your lines.

現在您可以斷開線路。