Griffon Corp (GFF) 2025 Q1 法說會逐字稿

Greetings and welcome to the Griffin Corporation fiscal first quarter, 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brian G. Harris, Chief Financial Officer. Thank you, you may begin.

問候並歡迎參加格里芬公司 2025 財年第一季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹您的主持人，財務長 Brian G. Harris。謝謝，你可以開始了。

Thank you. Good morning and welcome to Griffin's first quarter fiscal 2025 earnings call. Joining me for this morning's call is Ronald Kramer, Griffin's Chairman and Chief Executive Officer. Our press release was issued earlier this morning and is available on our website at www.griffon.com.

謝謝。早安，歡迎參加 Griffin 2025 財年第一季財報電話會議。參加今天早上電話會議的還有 Griffin 董事長兼執行長 Ronald Kramer。我們的新聞稿已於今天早上發布，可在我們的網站 www.griffon.com 上查閱。

Today's call is being recorded, and the replay instructions are included in our earnings release. Our comments will include forward-looking statements about Griffin's performance. These statements are subject to risks and uncertainties that can change as the world changes.

今天的電話會議正在錄音，重播說明包含在我們的收益報告中。我們的評論將包括有關格里芬表現的前瞻性陳述。這些聲明受風險和不確定性的影響，並且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 filing. Finally, some of today's remarks will adjust for items that affect comparability between periods. These items are explained in our non-GAAP reconciliations included in our press release.

請參閱今天的新聞稿和我們提交給美國證券交易委員會的文件中提出的警告聲明。最後，今天的一些評論將針對影響時期間可比性的項目進行調整。這些項目在我們的新聞稿中的非公認會計準則對帳表中進行了解釋。

With that. I'll turn the call over to Rob.

就這樣。我會把電話轉給羅布。

Thanks Brian. Good morning, everyone and thanks for joining us. Fiscal 2025 is off to a strong start in Q1. We delivered robust free cash flow of $143 million maintained solid operating performance at home and building products and sort continued profitability, improvements at consumer and professional products.

謝謝布萊恩。大家早安，感謝大家的參與。2025 財年第一季開局強勁。我們實現了 1.43 億美元的強勁自由現金流，保持了家居和建築產品穩健的經營業績，並持續盈利，改善了消費和專業產品。

With this momentum, we are on track to achieve our financial targets for the year. For the quarter, HBP revenue was consistent with the prior year and EBITDA increased by 2% revenue benefited from increased residential volume which was offset by reduced commercial volume. EBITDA benefited from reduced material costs, partially offset by increased labor and distribution costs.

憑藉這一勢頭，我們有望實現今年的財務目標。本季度，HBP 營收與去年持平，EBITDA 成長 2%，這得益於住宅交易量的增加，但被商業交易量的減少所抵消。EBITDA 受益於材料成本的降低，但被勞動力和分銷成本的增加部分抵消。

In CPP, first quarter revenue decreased 4% primarily due to decreased volume as all the CPP home markets except for Australia continued to see reduced consumer demand. Australia benefited from increased product offering sold through the retail channel and revenue contributed by the Pope acquisition.

在 CPP 方面，第一季營收下降 4%，主要原因是除澳洲以外的所有 CPP 本土市場消費需求持續減少，導致銷售下降。澳洲受惠於透過零售通路銷售的產品供應增加以及收購 Pope 帶來的收入。

CPP EBITDA in the first quarter, increased by $13 million to $18 million. This increases in profitability reflects the positive effects of the global sourcing expansion initiative and increased volume in Australia. Turning to capital allocation during the first quarter, we repurchased $42 million of our stock. 610,000 shares at an average price of $69.40 per share.

CPP 第一季的 EBITDA 增加了 1300 萬美元，達到 1800 萬美元。獲利能力的提高反映了全球採購擴張計劃和澳洲產量增加的正面影響。談到第一季的資本配置，我們回購了 4,200 萬美元的股票。 610,000 股，平均價格為每股 69.40 美元。

At December. 31, $390 million remains under our repurchase authorization. Since April 2023 and through December, we have repurchased $468 million of our stock 9.5 million shares at an average price of $49.09. These repurchases have reduced Griffin's outstanding shares by 16.7% relative to the total shares outstanding at the end of the second quarter of fiscal 2023.

十二月。 31 日，我們的回購授權金額仍為 3.9 億美元。自 2023 年 4 月起至 12 月，我們以平均 49.09 美元的價格回購了價值 4.68 億美元的 950 萬股股票。這些回購使得 Griffin 的流通股數相對於 2023 財年第二季末的總流通股數減少了 16.7%。

Also yesterday, the Griffin Board authorized a regular quarterly dividend of $0.18 per share payable on March 18, to shareholders of record on February 25, marking the 54th consecutive quarterly dividend to our shareholders. Our dividend has grown at an annualized compound rate of more than 18% since we initiated dividends in 2012. These actions reflect the strength and resiliency of our businesses as well as continued confidence in our strategic plan and outlook.

此外，昨天，格里芬董事會批准向 2 月 25 日登記在冊的股東派發每股 0.18 美元的定期季度股息，派發時間為 3 月 18 日，這標誌著我們連續第 54 次向股東派發季度股息。自 2012 年開始派發股利以來，我們的股利年複合成長率超過 18%。這些舉措體現了我們業務的實力和韌性，以及對我們的策略計畫和前景的持續信心。

I'll turn it back to Brian for a few more details on the quarter.

我將把話題轉回給 Brian，以了解有關本季度的更多詳細資訊。

Thank you Ron. First quarter revenue of $632 million decreased 2% where adjusted EBITDA of $145 million increased 11%, both in comparison to the prior year quarter. EBITDA margin before unallocated amounts of 23%, an increase of 270 basis points.

謝謝你，羅恩。第一季營收為 6.32 億美元，下降 2%，調整後 EBITDA 為 1.45 億美元，成長 11%，皆與去年同期相比。未分配金額前的 EBITDA 利潤率為 23%，增加了 270 個基點。

Gross profit on a GAAP basis for the quarter was $264 million compared to $237 million in the prior year quarter, excluding items that affect comparability from the current and prior period, gross profit was $264 million in the current quarter compared to $248 million in the prior year. Normalized gross margin increased year over year by 320 basis points to 41.8%.

以美國通用會計準則 (GAAP) 計算，本季毛利為 2.64 億美元，去年同期為 2.37 億美元；若剔除影響本期與上期可比性的項目，本季毛利為 2.64 億美元，去年同期為 2.48 億美元。標準化毛利率年增320個基點至41.8%。

First quarter GAAP selling, general and administrative expenses were $152 million consistent with the prior year. Excluding adjusting items from both periods. SG&A expenses were $151 million or 23.8% of revenue compared to the prior year of $147 million or 22.9% of revenue.

第一季 GAAP 銷售、一般及行政開支為 1.52 億美元，與去年同期持平。不包括兩個期間的調整項目。銷售、一般及行政費用為 1.51 億美元，佔營收的 23.8%，去年同期為 1.47 億美元，佔營收的 22.9%。

First quarter. GAAP net income was $71 million or $1.49 per share compared to $42 million in the prior quarter or $0.82 per share. Excluding items that affect comparability from both periods current quarter adjusted net income of $66 million or $1.39 per share compared to the prior year of $55 million or $1.07 per share.

第一季。以美國通用會計準則計算，淨收入為 7,100 萬美元，即每股 1.49 美元，而上一季淨收入為 4,200 萬美元，即每股 0.82 美元。排除影響兩個期間可比性的項目，本季調整後淨收入為 6,600 萬美元或每股 1.39 美元，而去年同期為 5,500 萬美元或每股 1.07 美元。

Corporate and unallocated expenses, excluding depreciation in the quarter of $14 million, consistent with the prior year. During the quarter, we realized $17.2 million in proceeds from the sale of real estate as a result of our CPP Global Source and expansion initiative. This offset capital expenditures of $17.5 million resulting in net capital expenditures of approximately $200,000. Prior year, net capital expenditures were $14 million.

公司及未分配費用（不包括本季 1,400 萬美元的折舊）與前一年持平。本季度，由於我們的 CPP 全球資源和擴張計劃，我們從出售房地產中獲得了 1,720 萬美元的收益。這抵消了 1750 萬美元的資本支出，導致淨資本支出約為 20 萬美元。上一年淨資本支出為 1,400 萬美元。

Regarding our segment performance. As Ron mentioned earlier, revenue for Home and Building products was consistent with the prior year quarter, reflected increased residential volume offset by reduced commercial volume. Price mix was also in line with the prior year quarter. Adjusted EBITDA increased 2% compared to the prior year quarter as reduced material costs were offset by increased labor and distribution costs.

關於我們的分部表現。正如羅恩之前提到的，住宅和建築產品的收入與去年同期持平，反映出住宅銷售的增加被商業銷售的減少所抵消。價格組合也與去年同期一致。調整後的 EBITDA 與去年同期相比增長了 2%，因為材料成本的減少被勞動力和分銷成本的增加所抵消。

Consumer and professional products revenue decreased 4% from the prior year quarter to $237 million due to decreased volume, driven by reduced consumer demand in North America and the United Kingdom, partially offset by organic growth in Australia and a 4% contribution from the Pope acquisition. CPP adjusted EBITDA increase by $13 million from the prior year quarter to $18 million, primarily due to the positive effects from our now completed global sourcing expansion initiative and the increased volume in Australia.

消費品和專業產品收入較去年同期下降 4% 至 2.37 億美元，原因是銷量下降，主要由於北美和英國的消費者需求減少，但被澳洲的有機成長和收購 Pope 帶來的 4% 的貢獻部分抵消。CPP 調整後的 EBITDA 較去年同期增加 1,300 萬美元，達到 1,800 萬美元，主要得益於我們現已完成的全球採購擴張計畫以及澳洲產量增加的正面影響。

Regarding our balance sheet and liquidity. As of December 31, 2024, we had net debt of $1.3 billion, a net debt to EBITDA leverage of 2.4 times was calculated based on our debt governance compared to 2.5 times leverage. At the end of last year's first quarter, our net debt and leverage decrease from our year end, September 2024, even after returning $51 million to shareholders through dividends and stock buybacks in the quarter.

關於我們的資產負債表和流動性。截至 2024 年 12 月 31 日，我們的淨負債為 13 億美元，根據我們的債務治理計算，淨負債與 EBITDA 的槓桿率為 2.4 倍，而槓桿率為 2.5 倍。截至去年第一季末，我們的淨債務和槓桿率較 2024 年 9 月年底有所下降，儘管本季透過股利和股票回購向股東返還了 5,100 萬美元。

All aspects of our fiscal 2025 guidance provided in November 2024 remain unchanged including $2.6 billion of revenue and $575 million to $600 million of segment adjusted EBITDA which excludes unallocated costs and certain other charges that affect comparability and free cash flow exceeding net income for the year.

我們在 2024 年 11 月提供的 2025 財年指引的所有方面保持不變，包括 26 億美元的收入和 5.75 億至 6 億美元的分部調整後 EBITDA（不包括未分配成本和影響可比性的某些其他費用以及自由現金流超過當年淨收入）。

We continue to anticipate 2025 HBP and CPP revenue will both be in line with 2024. HBP sales are expected to benefit from increased residential volume which will be offset by reduced demand for commercial projects.

我們繼續預期 2025 年 HBP 和 CPP 營收將與 2024 年持平。預計HBP的銷售將受益於住宅銷售的增加，但商業項目需求的減少將抵消這一成長。

And we expect to return to normal seasonal patterns which includes reduced volume during winter months. CPP sales are expected to reflect continued growth in Australia but offset by weakness in North America which is expected to persist through the first half of 2025.

我們預計恢復正常的季節性模式，包括冬季銷售減少。預計CPP銷售額將反映澳洲的持續成長，但將被北美的疲軟所抵消，預計這種疲軟將持續到2025年上半年。

Now I turn the call back over to Ron.

現在我把電話轉回給羅恩。

Thanks Brian. Our 2025 is off to an excellent start with strong free cash flow, continued solid operating performance at HBP and continued improved profitability at CPP. These results reinforce our confidence and our outlook for the year. We'll continue to use the strong operating performance and free cash flow of our businesses to drive a capital allocation strategy that delivers long term value for our shareholders.

謝謝布萊恩。我們的 2025 年開局良好，擁有強勁的自由現金流、HBP 持續穩健的營運表現以及 CPP 持續提高的獲利能力。這些結果增強了我們的信心和對今年的展望。我們將繼續利用我們業務的強勁營運績效和自由現金流來推動資本配置策略，為我們的股東創造長期價值。

This strategy includes investing in our businesses opportunistically repurchasing shares and reducing debt. To conclude this, I want to express my sincere gratitude to all of our Griffin employees around the world whose dedication and effort have driven our financial success. I couldn't be prouder of what we've accomplished together and there's much more ahead.

這項策略包括適時投資我們的業務、回購股票和減少債務。最後，我要向全球所有的 Griffin 員工表達誠摯的感謝，他們的奉獻和努力推動了我們的財務成功。我對我們共同取得的成就感到無比自豪，未來我們還會取得更多成就。

Operator will take any questions.

接線員將回答任何問題。

(Operator Instructions)

（操作員指示）

Roberts Schultz, Baird.

羅伯茨·舒爾茨，貝爾德。

Hey, good morning guys. Thanks for taking the question. So within CPP, you guys have switched to a sourcing strategy and the tools and storage businesses. Any way to help us understand the geographical mix of the imported products now, like any key regions or countries or any other color you could give there?

嘿，大家早安。感謝您回答這個問題。因此，在 CPP 內部，你們已經轉向採購策略以及工具和儲存業務。有什麼方法可以幫助我們了解現在進口產品的地理分佈，例如有哪些主要地區或國家，或者您能提供其他顏色嗎？

Sure your question is obviously touching upon tariffs. So let me start with, the tariff situation is extremely fluid with that said, given the proposed tariff on Mexico, Canada and China, we are comfortable with maintaining our 2025 financial guidance similar to tariffs in 2018, we expect to mitigate the effects of changing tariff policy through a combination of price supplier negotiations and further diversifying our global supply chain.

當然，您的問題顯然涉及關稅。首先，關稅情況極不穩定，考慮到對墨西哥、加拿大和中國的擬議關稅，我們願意維持與 2018 年關稅類似的 2025 年財務指導，我們預計透過價格供應商談判和進一步多樣化我們的全球供應鏈來減輕關稅政策變化的影響。

As we exit our fiscal 2025 we expect our tariff mitigation measures to be implemented and in effect allowing griffin to maintain its long term EBITDA margin target. And to your question specifically, yes, we do have significant amounts coming from China related to our lawn and garden and Hunter Fan businesses. Those are the only significant areas where tariffs could have, an impact.

當我們退出 2025 財年時，我們預計我們的關稅減免措施將得到實施，並實際上允許 Griffin 維持其長期 EBITDA 利潤率目標。具體來說，回答您的問題，是的，我們確實有大量資金來自中國，與我們的草坪花園和 Hunter Fan 業務有關。這些是關稅可能產生影響的唯一重大領域。

Got it. And then just an update on capital allocation. At today's level, how are you thinking about debt pay down versus buybacks?

知道了。然後只是關於資本配置的更新。在今天的水平上，您如何考慮償還債務與回購債務？

We continue to believe our stock is opportunistically attractive and at these levels, we'd rather buy stock and pay down debt, but we can do both.

我們仍然相信我們的股票具有機會吸引力，在目前的水平上，我們寧願購買股票並償還債務，但我們可以兩者兼顧。

Bob Labick, CJS Securities.

鮑勃·拉比克（Bob Labick），CJS 證券公司。

Good morning. Congratulations on continued strong performance.

早安.恭喜您持續取得優異表現。

Thanks, Bob.

謝謝，鮑伯。

Yeah. So speaking of obviously, you've made great progress in CPP, and you just talked a little bit about the tariff situation, but there -- you've talked about getting margins up over the next few years, substantially from here as well. So maybe talk a little bit about the next key steps and what the process is from here going forward on CPP margin expansion and I'll stop right there, please?

是的。所以顯然，你們在 CPP 方面取得了很大進展，而且你剛才談到了關稅情況，但你也談到了未來幾年利潤率的大幅提高。那麼，也許您可以稍微談談接下來的關鍵步驟，以及從現在開始的 CPP 利潤率擴大的進程，我就講到這裡，好嗎？

Sure. So through this year, we'll be transitioning from manufactured inventory to source inventory. As we go through the year. We did build up inventory last year in anticipation of this transition. And as we go forward, we'll continue to leverage the global supply chain.

當然。因此，今年我們將從製造庫存轉向來源庫存。隨著我們度過這一年。為了應對這一轉變，我們去年確實累積了庫存。隨著我們不斷前進，我們將繼續利用全球供應鏈。

Our initial move was to go with suppliers that we were already using for Australia and the UK and somewhat for the US and Canada. And step two, as we've always planned, is to then look across the globe for the best sourcing opportunities.

我們最初的舉措是與已經在澳洲和英國以及部分美國和加拿大使用的供應商合作。第二步，正如我們一直在計劃的那樣，就是在全球範圍內尋找最佳的採購機會。

We will continue to design and bring new products to -- in particular, into the US, of course, across the world as well. And we expect, over time, the consumer will come back from the levels that is at the low levels of purchasing that are currently happening.

我們將繼續設計並將新產品推向美國，當然也推向世界各地。我們預計，隨著時間的推移，消費者的購買力將從目前的低水準回升。

Okay, great. Thanks. And then you also mentioned on HBP residential up, commercial down in volumes there. Talk about the headwinds and tailwinds in general to the commercial and resi door markets and your performance versus the overall market?

好的，太好了。謝謝。然後您也提到 HBP 住宅用地數量上升，而商業用地數量下降。談談商業和住宅門市場整體面臨的不利因素和有利因素，以及與整體市場相比您的表現如何？

Sure, on the residential side, we believe we're outperforming the market and gaining market share. We play mostly on the high end residential door, and that part of the market continues to be strong. On the commercial side, over the last almost two years now, the ABIs and the Dodge Momentum Indexes have been soft. It feels like they're starting to bottom. But in the meantime, that affects our commercial volume as it would anybody else.

當然，在住宅方面，我們相信我們的表現優於市場並獲得市場份額。我們主要經營高端住宅門，該部分市場持續強勁。從商業方面來看，過去近兩年來，ABI 和道奇動量指數一直疲軟。感覺他們開始觸底了。但同時，這也會對我們的商業量產生影響，就像對其他人一樣。

And we continue to believe that there is a pent up demand for housing. And as interest rates ultimately get lower and consumer demand gets higher, we're going to see the benefit of growth in unit volumes and expect HBP to be able to continue its margin at 30% for this year. So we have an excellent business that has still got some upside for an expansion in the US economy and particularly the US housing market.

我們仍然相信，住房需求仍被壓抑。隨著利率最終降低以及消費者需求上升，我們將看到單位銷售成長的好處，並預計 HBP 今年的利潤率將繼續保持在 30%。因此，我們的業務非常出色，對於美國經濟、特別是美國房地產市場的擴張仍有一定的好處。

Trey Grooms, Stephens Inc.

特雷·格魯姆斯（Trey Grooms），史蒂芬斯公司

Hey, good morning, Ron and Brian and congrats on the good results.

嘿，早安，羅恩和布萊恩，恭喜你們取得好成績。

Thanks, and good morning.

謝謝，早安。

So I just want to be clear on something from an earlier question and Brian, your response to that. So is it fair to say now that you're assuming that tariffs will be coming into play through the year on CPP and that you will be able to -- you'll be navigating that. And as a result, you're reiterating the guide. So in effect, this navigation of the tariffs and the lack of impact is basically you're baking it into the guide. Did I hear that right?

所以我只是想澄清一下之前的問題以及 Brian 對此的回答。那麼，現在是否可以公平地說，您假設關稅將在全年對 CPP 產生影響，並且您將能夠 - 您將能夠應對這一情況。因此，您要重申該指南。因此實際上，這種關稅導航和缺乏影響基本上就是將其納入指南中。我沒聽錯吧？

Yes, you heard that correct. We believe that the timing in the year and the mitigation strategies will keep us within our guidance.

是的，你沒聽錯。我們相信，今年的時間安排和緩解策略將使我們保持在指導範圍內。

Perfect. Thank you for that. And I think that's an important point here, I mean, there's a lot of puts and takes around going around right now and a lot of noise around the tariffs and, it's definitely a question. I know you guys have been getting and we've been getting in as well. So thank you for clearing that up.

完美的。謝謝你。我認為這是一個重要的觀點，我的意思是，現在有很多關於關稅的爭論，也有很多關於關稅的喧囂，這絕對是個問題。我知道你們一直在努力，我們也一直在努力。謝謝你澄清了這一點。

And then on, let's see, HBP margins. So the margins there continue to be very strong demand on the residential side remains good. As you mentioned, you primarily play in the higher end. Is it fair to say that high end continues to outperform entry level products.

然後，讓我們看看 HBP 利潤率。因此，住宅方面的需求仍然非常強勁，利潤率也保持良好。正如您所說，您主要在高端市場開展業務。是否可以說高階產品的表現繼續優於入門產品？

I know entry level is not really your bread and butter, but just wondering how that is comparing to entry level. And then what you're still expecting on the pricing front across the HBP portfolio here. Are you, are you still expecting a price cost to be similar in '24 -- excuse me this year versus '24?

我知道入門級並不是你真正的收入來源，但我只是想知道這與入門級相比如何。然後，您仍然對 HBP 產品組合的定價有何期待？您是否仍預期 24 年的價格成本會相似—請問今年與 24 年相比如何？

Let me start by just saying, we view Clopay and the market views Clopay as the leading brand in the garage door category, residential category. Repair and remodel continues to be strong, and we continue to be the leader in this space, which is why we think we're gaining market share.

首先我要說的是，我們認為 Clopay 和市場都認為 Clopay 是車庫門類別和住宅類別的領導品牌。修復和改造業務繼續保持強勁，我們繼續成為該領域的領導者，這就是我們認為我們正在獲得市場份額的原因。

Yeah, I'll just add to that as far as the pricing. We do expect price to be in line and costs to be in line with 2024. And if there's any impacts on input costs for any reason, those will be mitigated likely via price.

是的，我只想補充一下價格方面的問題。我們確實預期價格將與 2024 年保持一致，成本也將與 2024 年保持一致。如果因為任何原因對投入成本產生影響，這些影響很可能會透過價格來緩解。

We continue to believe the commercial side of the business, ComellCookson, is going to grow as the US economy recovers. And you correctly point out that there is a swirl over tariffs, but the intent is ultimately a stronger and better US economy.

我們仍然相信，隨著美國經濟的復甦，ComellCookson 的商業業務將會成長。您正確地指出，關稅問題確實引發了爭議，但最終目的是實現更強大、更好的美國經濟。

And if that plays out, will benefit on both the residential side and on the commercial side. We continue to see the residential side of our business doing well, and we continue to believe that the commercial business has growth.

如果這項計畫得以實施，住宅和商業方面都將受益。我們繼續看到住宅業務表現良好，我們仍然相信商業業務將會成長。

Sam Darkatsh, Raymond James. .

山姆達卡什、雷蒙德詹姆斯。。

Good morning, Ron. Good morning, Brian. How are you?

早安，羅恩。早安，布萊恩。你好嗎？

Morning. Well, thank you.

早晨。好的，謝謝你。

Two quick questions if I could. I didn't hear if you mentioned it. I missed it, I apologize, but I didn't hear what repo might have been in January? And then related to that and I have a follow up -- related to that, should we anticipate that $40 million, $50 million, $60 million quarter pace to be similar to what you're expecting throughout the year?

如果可以的話，我問兩個簡單問題。我沒有聽說你是否提到過它。我錯過了，很抱歉，但我沒有聽說一月份的 repo 是什麼？然後與此相關，我有一個後續問題 - 與此相關，我們是否應該預期 4000 萬美元、5000 萬美元、6000 萬美元的季度速度與您對全年的預期相似？

We purchased $42 million for the quarter ending December 31, and you'll have to wait to get the second quarter repurchase when we report in May. And you should expect that we're going to continue to generate substantial free cash flow. And depending on the price of the stock, will continue to be a buyer at these levels, expect us to continue to be a buyer.

我們在截至 12 月 31 日的季度購買了 4,200 萬美元，您必須等到我們 5 月報告時才能獲得第二季的回購。您應該預料到我們將繼續產生大量的自由現金流。並且根據股票的價格，將繼續在這些水平上成為買家，預計我們將繼續成為買家。

And my second question, getting back to CPP, is the entirety of the spring product at this point already landed? Or are you still waiting for additional product therefore, would be subjected to tariffs?

我的第二個問題是回到 CPP，現在整個春季產品是否已經上市了？還是您仍在等待需要繳納關稅的額外產品？

A significant portion of the spring product has landed.

春季產品已大量到貨。

Julio Romero, Sidoti & Company.

胡里奧·羅梅羅，西多蒂公司。

Thanks. Hey, good morning, Ron Brian. First question here on CPP. Really strong CPP margins on lower volume. Can you expand on what you're seeing in North America by channels of product lines? Any notable changes to call out especially if the global sourcing strategy is fully up and running here? And then secondly, what can CPP margins look like when demand does recover in North America?

謝謝。嘿，早上好，羅恩布萊恩。這是關於 CPP 的第一個問題。在較低的銷售量下，CPP 利潤率確實很高。能否詳細說明一下您在北美產品線通路所看到的情況？如果全球採購策略已經全面實施，有什麼值得注意的改變嗎？其次，當北美需求復甦時，CPP 利潤率會是多少？

Sure. So it's really across all our product lines. We're seeing the consumer be weak and not spending what we've seen in the past. And as far as going forward, it's really our 15% margins across CPP globally, which is a balance of 12% for the lawn and garden business across the globe and 20% for Hunter Fan business.

當然。所以它確實涵蓋了我們所有的產品線。我們看到消費者的消費能力變得疲軟，支出沒有像過去那麼大。就未來而言，我們在全球範圍內的 CPP 利潤率實際上是 15%，其中全球草坪和花園業務的利潤率為 12%，而 Hunter Fan 業務的利潤率為 20%。

Excellent. And then for my follow up, you were able to sell some real estate related to CPP here in the quarter to $217 million. Just how much more runway is there for additional proceeds from real estate and equipment sales in your view?

出色的。然後，我的後續問題是，您在本季以 2.17 億美元的價格出售了一些與 CPP 相關的房地產。您認為房地產和設備銷售還能帶來多少額外收益？

Sure. So we have about $5 million of health for sale assets on our balance sheet. So we expect at least $5 million over time.

當然。因此，我們的資產負債表上有約 500 萬美元的待售健康資產。因此我們預計隨著時間的推移至少會有 500 萬美元。

Thank you. We have reached the end of the question and answer session. And I'll now turn the call back over to CEO, Ron Kramer for closing remarks.

謝謝。問答環節已經結束。現在我將把電話轉回給執行長 Ron Kramer 做最後發言。

We continue to be excited about where our company is headed. We're going to execute our business plan and continue to deliver outstanding performance, and we look forward to speaking to you in May.

我們繼續對公司的發展方向感到興奮。我們將執行我們的業務計劃並繼續提供出色的表現，我們期待五月與您交談。

Thank you and ladies and gentlemen, this concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝各位，女士們、先生們，今天的會議到此結束。現在您可以斷開線路。感謝您的參與。