GMS Inc (GMS) 2024 Q2 法說會逐字稿

Greetings. Welcome to GMS' second-quarter 2024 earnings conference call. (Operator Instructions) As I note, this call is being recorded.

問候。歡迎參加 GMS 2024 年第二季財報電話會議。 （操作員說明）正如我所注意到的，此通話正在錄音。

At this time, I'll turn the conference over to Carey Phelps, Vice President of Investor Relations. Carey, you may begin.

這次，我將把會議交給投資者關係副總裁凱裡·菲爾普斯(Carey Phelps)。凱裡，你可以開始了。

Thank you, Rob. Good morning and thank you for joining us for the GM' earnings conference call for the second quarter of fiscal 2024. I'm joined today by John Turner, President and Chief Executive Officer; and Scott Deakin, Senior Vice President and Chief Financial Officer.

謝謝你，羅布。早安，感謝您參加 2024 財年第二季通用汽車收益電話會議。今天，總裁兼執行長約翰·特納 (John Turner) 也加入了我的行列。以及高級副總裁兼財務長 Scott Deakin。

In addition to the press release issued this morning, we have posted PowerPoint slides to accompany this call in the Investors section of our website at www.gms.com.

除了今天早上發布的新聞稿外，我們還在我們網站 www.gms.com 的投資者部分發布了本次電話會議的 PowerPoint 幻燈片。

On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risks and uncertainties, many of which are beyond our control and may cause actual results to differ from those discussed today.

在今天的電話會議上，管理階層準備好的評論和對您問題的回答可能包含1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。前瞻性陳述涉及受風險和不確定性影響的事項，其中許多風險和不確定性超出了我們的考慮範圍。控制，並可能導致實際結果與今天討論的結果不同。

As a reminder, forward-looking statements represent management's current estimates and expectations. The company assumes no obligation to update any forward-looking statement in the future. Listeners are encouraged to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC, including the risk factor section in the company's 10-K and other periodic reports.

提醒一下，前瞻性陳述代表管理階層目前的估計和期望。該公司不承擔未來更新任何前瞻性聲明的義務。我們鼓勵聽眾查看公司向 SEC 提交的文件中包含的與這些前瞻性陳述相關的更詳細討論，包括公司 10-K 和其他定期報告中的風險因素部分。

Today's presentation also includes a discussion of certain non-GAAP measures. The definitions and reconciliations of these non-GAAP measures are provided in the press release and presentation slides. Please note that references on this call for the second quarter of fiscal 2024 relate to the quarter ended October 31, 2023.

今天的演示還包括對某些非公認會計原則措施的討論。新聞稿和簡報投影片中提供了這些非公認會計準則衡量標準的定義和調節。請注意，本次電話會議中提及的 2024 財年第二季涉及截至 2023 年 10 月 31 日的季度。

Finally, once we began the question-and-answer session of the call in the interest of time, we kindly request that you limit yourself to one question and one follow-up.

最後，由於時間關係，當我們開始電話問答環節時，我們懇請您將自己限制在一個問題和一個後續行動上。

With that, I'll turn the call over to John Turner, whose discussion will be starting on slide 3. JT?

接下來，我會將電話轉給 John Turner，他的討論將從幻燈片 3 開始。JT？

Thank you, Carey, and thank you all for joining us today.

謝謝你，凱裡，也謝謝大家今天加入我們。

We are pleased to report another solid quarter, which exceeded our stated expectations for net sales, net income, and adjusted EBITDA. Continued demand in commercial and multifamily construction drove volume increases in ceilings, steel framing, and complementary products, all of which helped to offset the more challenging steel pricing environment and relative softness in single-family residential demand.

我們很高興地報告又一個穩健的季度，超出了我們對淨銷售額、淨收入和調整後 EBITDA 的預期。商業和多戶建築的持續需求推動了天花板、鋼框架和配套產品的銷售增加，所有這些都有助於抵消更具挑戰性的鋼材定價環境和單戶住宅​​需求的相對疲軟。

Despite the single-family market, wallboard experienced only a slight overall volume decline, which was offset by continued resilient pricing. For the quarter, net sales were $1.4 billion, net income was $81 million, and adjusted EBITDA totaled $168 million. Cash flow improved again this quarter as we recorded cash from operations of $118 million and free cash flow of $102 million, up 10% and 6% respectively from the prior quarter.

儘管存在單戶市場，但牆板的整體銷售僅略有下降，但持續彈性的價格抵消了下降。該季度淨銷售額為 14 億美元，淨利潤為 8,100 萬美元，調整後 EBITDA 總計 1.68 億美元。本季現金流再次改善，營運現金為 1.18 億美元，自由現金流為 1.02 億美元，分別比上一季成長 10% 和 6%。

Net debt leverage improved to 1.5 times from 1.6 times a year ago. Our well-balanced portfolio of products and end markets combined with our team's expertise and the company's scale, continues to provide us with the ability to flex our operations as dynamics in our end markets change. In the near term, multifamily activity is expected to continue at or near current levels as backlog is worked through over the next few quarters.

淨債務槓桿率從一年前的1.6倍提高至1.5倍。我們均衡的產品和終端市場組合，加上我們團隊的專業知識和公司規模，繼續為我們提供了隨著終端市場動態變化而靈活運作的能力。短期內，隨著積壓訂單在未來幾季得到解決，多戶住宅活動預計將繼續保持或接近當前水準。

Commercial is also expected to continue at its current pace into the spring, and we are optimistic about the sequentially improved levels of activity we've seen in single-family demand. As the recent easing of mortgage rates, limited supply of existing homes for sale and favorable demographics seems to be setting up promising conditions for this end market, particularly as we look out into fiscal 2025.

預計商業活動也將以目前的速度持續到春季，我們對單戶需求活動水準的持續改善感到樂觀。隨著最近抵押貸款利率的放鬆、現有待售房屋供應有限以及有利的人口結構似乎正在為這一終端市場創造有希望的條件，特別是在我們展望 2025 財年時。

Our teams have done a remarkable job so far this fiscal year under challenging circumstances to continue to focus on our strategic pillars, which are highlighted on slide 4.

本財年迄今為止，我們的團隊在充滿挑戰的環境下取得了出色的工作，繼續專注於我們的策略支柱，這在幻燈片 4 中得到了強調。

First, we have continued to grow in our core products with higher wallboard sales as a percentage of Gypsum Associated shipments versus the prior year, reflecting at least in part, our strength in serving the nation's largest homebuilders as they too gain share and as they report a more positive outlook. We've also increased share in steel framing according to the Steel Framing Industry Association data. And we continue to gain share in ceilings as evidenced by manufacturing partner disclosures and channel checks.

首先，我們的核心產品持續成長，牆板銷售額佔石膏相關出貨量的百分比比前一年更高，這至少部分反映了我們為全國最大的住宅建築商提供服務的實力，因為他們也獲得了份額，正如他們報告的那樣更積極的前景。根據鋼框架產業協會的數據，我們也增加了鋼框架的份額。我們繼續在上限中獲得份額，製造合作夥伴的披露和管道檢查證明了這一點。

Second, our team continues to put great focus on growing our complementary products category, which made up 30% of our sales for the quarter and delivered its 14th consecutive quarter of year-over-year growth. We are placing particular emphasis on tools and fasteners, EIFS and stucco, and insulation, which collectively continued to grow faster than the overall category during the quarter.

其次，我們的團隊繼續高度重視補充產品類別的發展，該類別占我們本季銷售額的 30%，並連續第 14 個季度實現同比增長。我們特別重視工具和緊固件、外牆外保溫系統 (EIFS) 和灰泥以及絕緣材料，這些產品在本季的整體成長速度持續快於整體類別。

Third, expansion through M&A and greenfield openings continues to be one of our key levers of growth. During the quarter, we acquired AMW Construction Supply, a highly respected distributor of tools and fasteners and other complementary products in the Phoenix, Arizona market. And we also opened two new greenfield locations.

第三，透過併購和新建專案進行擴張仍然是我們成長的關鍵槓桿之一。本季度，我們收購了 AMW Construction Supply，這是一家在亞利桑那州菲尼克斯市場備受推崇的工具和緊固件及其他配套產品分銷商。我們還開設了兩個新的綠地地點。

Post COVID, we have acquired 14 companies representing a total of 30 distribution centers and 91 AMES stores with estimated annual revenues at the time of deal closings of nearly $600 million. And we've also opened 26 greenfield locations. We continue to have a promising pipeline of opportunities and an appetite to expand our footprint in key markets where we are underpenetrated, while we also broaden our service territories and product offerings in existing markets.

新冠疫情發生後，我們收購了 14 家公司，總計 30 個配送中心和 91 個 AMES 商店，交易完成時預計年收入將接近 6 億美元。我們還新開了 26 家門市。我們繼續擁有大量充滿希望的機會，並有興趣擴大我們在滲透率不足的關鍵市場的足跡，同時我們也擴大了現有市場的服務領域和產品範圍。

Finally, we are successfully driving improved productivity and profitability throughout the business, reducing complexity costs, and becoming more efficient and effective operators, with enhanced tools and data to facilitate better decision making and offerings that provide an overall enhanced customer experience. The benefits of these efforts are evident in the levels of SG&A we recorded this quarter, which Scott will detail during his remarks.

最後，我們成功地提高了整個業務的生產力和盈利能力，降低了複雜性成本，並成為更有效率和有效的營運商，並利用增強的工具和數據來促進更好的決策和產品，從而提供整體增強的客戶體驗。這些努力的好處在我們本季記錄的 SG&A 水平中顯而易見，斯科特將在演講中詳細介紹這一點。

Before turning the call over, I want to thank our team for maintaining our high level of performance and commitment to delivering outstanding customer service during the quarter. We have demonstrated our flexibility and expertise in supporting all of our end markets and believe that we are well positioned as demand dynamics progress in the coming quarters.

在轉交電話之前，我要感謝我們的團隊在本季度保持高水準的績效並致力於提供出色的客戶服務。我們在支援所有終端市場方面展示了我們的靈活性和專業知識，並相信隨著未來幾季需求動態的進展，我們處於有利地位。

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

這樣，我會將電話轉給史考特。

Thanks, JT. Good morning, everyone. Starting with slide 5, I'll now provide some further perspective on our second-quarter results.

謝謝，JT。大家，早安。從投影片 5 開始，我現在將提供對第二季業績的進一步看法。

Net sales for the quarter decreased just slightly year over year to $1.4 billion as steel price and mix deflation of more than 30% drove an $85 million reduction in net sales. Single-family demand softness was also a headwind while robust activity levels in both our commercial and multifamily end markets with volume increases in steel framing, ceilings, and complementary products were a favorable offset.

由於鋼鐵價格和超過 30% 的混合通貨緊縮導致淨銷售額減少 8,500 萬美元，該季度淨銷售額同比略有下降，至 14 億美元。單戶需求疲軟也是一個不利因素，而我們的商業和多戶終端市場的強勁活動水平以及鋼框架、天花板和配套產品的銷售增加是有利的抵消。

Our recent acquisitions, including EMJ, Tanner, Blair, Home Lumber, and AMW also contributed positively to our quarter's results. Organically, sales were down 3.1%. From a US end market perspective, multifamily sales dollars grew 9.3% year over year while single-family sales dollars declined 10.3%, resulting in a total residential sales dollar decline of 5.7%. Commercial sales dollars in the US on the other hand were roughly flat as increased sales volumes were offset by the noted steel price deflation.

我們最近的收購，包括 EMJ、Tanner、Blair、Home Lumber 和 AMW 也對我們季度的業績做出了積極貢獻。整體而言，銷售額下降了 3.1%。從美國終端市場的角度來看，多戶住宅銷售額年增 9.3%，而單戶住宅銷售額下降 10.3%，導致住宅總銷售額下降 5.7%。另一方面，美國的商業銷售美元大致持平，因為銷售量的增加被明顯的鋼鐵價格通貨緊縮所抵消。

As we highlighted last quarter, many of our regional markets are continuing to experience favorable commercial demand with active projects underway or scheduled to start in the coming quarters across nearly all sectors. For example, we expect to participate in the Tampa Airport expansion, multiple new hospitals and other medical facilities, student housing and other higher education facilities, a new casino, several manufacturing facilities, a number of mixed-use residential projects, and even some tenant build-out projects in the office space.

正如我們在上季度所強調的那樣，我們的許多區域市場繼續經歷有利的商業需求，幾乎所有行業的活躍項目正在進行或計劃在未來幾季啟動。例如，我們預計將參與坦帕機場擴建、多個新醫院和其他醫療設施、學生宿舍和其他高等教育設施、一個新賭場、多個製造設施、多個混合用途住宅項目，甚至一些租戶辦公空間的擴建項目。

While financing is tight and could become a headwind for the commercial end market, we are capitalizing on the attractive level of demand we've been seeing currently.

雖然融資緊張並可能成為商業終端市場的阻力，但我們正在利用目前所看到的有吸引力的需求水準。

Now looking at our second quarter results for each of our product segments. The wallboard sales dollars of $585.2 million were roughly flat with a year ago, while multifamily and commercial wallboard volumes were up 17% and 6.5%, respectively. Single-family wallboard volumes declined 11.4%. Overall, wallboard volumes were approximately flat with resilient prices that remained steady with a year ago, again, reflecting the realities facing wallboard manufacturers, which are high input in production costs, a lack of excess capacity, and increasingly pressured access to synthetic gypsum.

現在來看看我們每個產品領域的第二季業績。牆板銷售額為 5.852 億美元，與去年同期基本持平，而多戶型和商業牆板銷量分別增長 17% 和 6.5%。單戶牆板銷量下降 11.4%。總體而言，牆板銷量大致持平，價格彈性與一年前保持穩定，再次反映了牆板製造商面臨的現實，即生產成本投入高、產能過剩缺乏以及合成石膏的獲取壓力越來越大。

Organically, second-quarter wallboard sales were also roughly flat with the prior year period, comprised of a 1% decline in volume and a 0.7% increase in price and mix. For the second quarter, the average realized wallboard price was $476 per 1,000 square feet, up slightly from both a year ago and sequentially from our fiscal first quarter. Given this continued resilience in pricing, we now expect roughly flat sequential wallboard pricing mix through the end of our fiscal year.

從有機角度來看，第二季牆板銷售量也與去年同期大致持平，銷售量下降 1%，價格和產品組合上漲 0.7%。第二季度，牆板的平均實現價格為每 1,000 平方英尺 476 美元，比去年同期和第一財季比去年同期略有上升。鑑於定價的持續彈性，我們現在預計到本財年末，牆板的連續定價組合將大致持平。

Second quarter ceiling sales of $175.3 million increased 9.9% year over year, comprised of an 8.5% increase in volumes and a 1.4% benefit from price and mix. Organic sales and ceilings grew 7.2%, but a 5.8% increase in volumes and a 1.4% benefit from price and mix. Second quarter's steel framing sales of $232.1 million were down 16.6% versus the prior year quarter as deflationary pricing drove a 30.7% decline in price and mix, while volumes increased 14.1%. Organically, steel framing sales were down 17.4% with a 30.5% decline in price and mix, partially offset by a 13.1% increase in volume.

第二季上限銷售額為 1.753 億美元，年增 9.9%，其中銷量成長 8.5%，價格和組合收益成長 1.4%。有機銷售額和上限增長了 7.2%，但銷量增長了 5.8%，價格和組合增長了 1.4%。第二季鋼框架銷售額為 2.321 億美元，較去年同期下降 16.6%，因為通貨緊縮定價導致價格和產品組合下降 30.7%，而銷售量則成長 14.1%。整體而言，鋼框架銷量下降了 17.4%，價格和結構下降了 30.5%，但銷量成長 13.1% 部分抵消了這一影響。

While steel framing has been a headwind over the last year, raw material pricing has increased with the underlying commodity indices for cold-rolled and galvanized of nearly 50% per [tonne] since the low point this fall. Additionally, lead times continue to extend and with inconsistent availability regionally. Accordingly, we have received multiple notices of upcoming price increases from our manufacturing partners. Given what is traditionally a four to six month lag post commodity index change, we currently expect steel prices to continue to be pressured in the third quarter before flattening out sequentially in the fourth quarter and then turning positive on a sequential basis during fiscal 2025.

儘管鋼框架在去年一直是個逆風，但原物料價格有所上漲，冷軋和鍍鋅的基本商品指數自今年秋季的低點以來每噸上漲了近 50%。此外，交貨時間持續延長，且區域內的供應情況不一致。因此，我們已收到製造合作夥伴發出的多份即將漲價的通知。鑑於大宗商品指數變化通常會滯後四到六個月，我們目前預計鋼鐵價格將在第三季度繼續承壓，然後在第四季度環比趨於平緩，然後在 2025 財年環比轉正。

Complementary product sales of $428.3 million for the quarter grew 4.8% year over year as we benefited from positive contributions from acquisitions. Organically, sales of complementary products declined 1.4%, reflecting pricing pressures in lumber and volume declines in our Canadian roofing and lumber product lines given the currently soft residential demand.

本季補充產品銷售額為 4.283 億美元，較去年同期成長 4.8%，這得益於收購的正面貢獻。從有機角度來看，互補產品的銷售額下降了 1.4%，反映出木材的價格壓力以及鑑於目前住宅需求疲軟，我們加拿大屋頂和木材產品線的銷量下降。

As we've discussed in previous quarters, we are especially focused on our tools and fasteners, EIFS and stucco, and insulation product lines where we are leveraging significant opportunities to share best practices across our operations and drive growth in these areas. For our fiscal second quarter, these lines grew 10.6% in the aggregate.

正如我們在前幾季所討論的，我們特別關注我們的工具和緊固件、EIFS 和灰泥以及絕緣產品線，我們正在利用重要機會在我們的營運中分享最佳實踐並推動這些領域的增長。在我們第二財季，這些業務總計成長了 10.6%。

Now turning to slide 6, which highlights our profitability for the quarter. Gross profit of $458.6 million decreased 1.3% compared to the prior year quarter. This decline was nearly entirely driven by market deflation and steel pricing. Gross margin of 32.3% compared to 32.5% a year ago, just slightly ahead of our expectations for the quarter. Volatility in steel pricing and realization of purchasing incentive tiers were the principal factors in both comparisons.

現在轉向幻燈片 6，它突出顯示了我們本季度的盈利能力。毛利為 4.586 億美元，比去年同期下降 1.3%。這種下降幾乎完全是由市場通貨緊縮和鋼鐵定價所推動的。毛利率為 32.3%，而去年同期為 32.5%，略高於我們對該季度的預期。鋼材價格的波動和採購激勵等級的實現是兩個比較的主要因素。

Selling, general, and administrative expenses increased $21.9 million during the quarter to $300.9 million, including an increase of $12.6 million related to recent acquisitions in our newly opened greenfield locations. Excluding these expansions, we were very pleased that the remaining increase in SG&A expenses lagged our consolidated increase in sales volumes even as our high cost to serve end markets led the way in our volume growth for the quarter.

本季銷售、一般和管理費用增加了 2,190 萬美元，達到 3.009 億美元，其中與最近在我們新開設的綠地地點進行收購相關的增加了 1,260 萬美元。排除這些擴張，我們非常高興的是，儘管我們服務終端市場的高成本主導了本季銷售的成長，但銷售、管理和行政費用的剩餘成長落後於我們的綜合銷售成長。

I would like to thank our teams for their discipline in controlling costs and driving inefficiencies out of business. Our rightsizing of the business last winter, coupled with efficiencies gained from ongoing productivity initiatives enabled us to achieve these favorable SG&A results.

我要感謝我們的團隊在控製成本和消除業務效率低下方面的紀律。去年冬天，我們對業務進行了調整，再加上持續的生產力計劃所提高的效率，使我們能夠實現這些有利的銷售、管理和行政管理 (SG&A) 業績。

SG&A as a percentage of net sales was 21.2% for the quarter, an increase of 170 basis points from 19.5% a year ago with 120 basis points of the difference due to steel price deflation, 30 basis points due primarily to increased labor costs, mostly associated with the higher level of commercial and multifamily activity levels we experienced during the quarter, and our remaining 20 basis points due to recent acquisitions and greenfields.

本季銷售及管理費用佔淨銷售額的百分比為21.2%，比去年同期的19.5% 增加了170 個基點，其中120 個基點的差異是由於鋼價通貨緊縮，30 個基點主要是由於勞動力成本增加所致。與本季度我們經歷的商業和多戶型活動水平較高有關，以及由於最近的收購和綠地而導致的剩餘 20 個基點。

Adjusted SG&A expense as a percentage of net sales of 20.6% was also up 170 basis points from the prior year quarter. All in and with 16.7% higher interest expense, net income decreased 21.5% to $81 million for the quarter, or $1.97 per diluted share compared to net income of $103.2 million or $2.41 per diluted share a year ago.

調整後的 SG&A 費用佔淨銷售額的 20.6%，也比去年同期成長了 170 個基點。總而言之，由於利息支出增加了16.7%，本季淨利下降了21.5%，至8,100 萬美元，即稀釋後每股收益1.97 美元，而去年同期淨利潤為1.032 億美元，即稀釋後每股收益2.41美元。

Adjusted EBITDA of $167.6 million decreased $28 million as compared with a year ago. And single-family demand pressure, steel framing price declines, and the activity-based operating cost increases in the quarter, adjusted EBITDA margin decreased to 11.8% compared to last year's second quarter level of 13.7%.

調整後 EBITDA 為 1.676 億美元，較上年同期減少 2,800 萬美元。而單戶需求壓力、鋼框架價格下降以及基於活動的營運成本增加，該季度調整後的 EBITDA 利潤率下降至 11.8%，而去年第二季的水準為 13.7%。

Now shifting to our balance sheet, which is highlighted on slide 7. At quarter end, we had cash on hand of $76.5 million and the $823.7 million of available liquidity under our revolving credit facility. We have no near-term debt maturities and our net adjusted EBITDA debt leverage at the end of the quarter was 1.5 times compared to 1.6 times a year ago.

現在轉向我們的資產負債表，這在幻燈片 7 中突出顯示。截至季度末，我們手頭現金為 7,650 萬美元，循環信貸安排下的可用流動資金為 8.237 億美元。我們沒有短期債務到期日，本季末我們的淨調整後 EBITDA 債務槓桿為 1.5 倍，而去年同期為 1.6 倍。

Cash generation improved again this quarter. Cash provided by operating activities was $118.1 million compared to $107.3 million in the prior year period, while free cash flow for the quarter was $102.1 million, improved from $96.5 million a year ago. Year to date, we've generated 19% more free cash flow than a year ago and with relative strength of cash flows in the second half. For the full year, we expect free cash flow generation to be between 50% to 60% of adjusted EBITDA.

本季現金產生能力再次改善。經營活動提供的現金為 1.181 億美元，去年同期為 1.073 億美元，而本季自由現金流為 1.021 億美元，較上年同期的 9,650 萬美元有所改善。今年迄今為止，我們的自由現金流量比一年前增加了 19%，下半年的現金流量相對強勁。我們預計全年自由現金流量將佔調整後 EBITDA 的 50% 至 60%。

Capital expenditures of $16 million for the quarter compared to $10.7 million a year ago. We now expect that for the full-year fiscal 2024 capital expenditures will be approximately $55 million.

本季資本支出為 1,600 萬美元，而去年同期為 1,070 萬美元。我們現在預計 2024 財年全年資本支出約為 5,500 萬美元。

In October, our Board of Directors approved an expanded share repurchase program under which the company is authorized to repurchase up to $250 million of its outstanding common stock. This expanded program replaces our previous repurchase authorization. During the quarter, we repurchased approximately 689,000 shares, leaving $241.3 million of authorization remaining as of the end of the quarter.

10 月，我們的董事會批准了一項擴大的股票回購計劃，根據該計劃，該公司被授權回購高達 2.5 億美元的已發行普通股。這項擴展計劃取代了我們先前的回購授權。本季度，我們回購了約 689,000 股股票，截至本季末，剩餘授權金額為 2.413 億美元。

We are well positioned with a solid balance sheet with no near-term maturities on our capital structure. We expect to continue to balance investing in our strategic initiatives, including additional M&A opportunities with paying down debt and opportunistically leveraging favorable market conditions for share repurchases.

我們的資產負債表狀況良好，資本結構沒有短期到期的情況。我們預計將繼續平衡對策略性舉措的投資，包括透過償還債務和機會主義地利用有利的市場條件進行股票回購的額外併購機會。

I'll close my remarks today with thanks to our team for again successfully delivering solid results amidst ever-changing market conditions.

在結束今天的演講時，我要感謝我們的團隊在不斷變化的市場條件下再次成功取得了紮實的成果。

I'll now turn the call over to JT for a review of our outlook, starting on slide 8.

我現在將把電話轉給 JT，從幻燈片 8 開始回顧我們的前景。

Thank you, Scott. Our end markets remain dynamic. Permits and [starts] on US multifamily structures have declined, but a solid backlog remains and is expected to deliver year-over-year growth, albeit at declining rates through at least the end of this fiscal year.

謝謝你，斯科特。我們的終端市場仍然充滿活力。美國多戶住宅建築的許可和[開工]數量有所下降，但仍存在大量積壓，預計將實現同比增長，儘管至少到本財年末增速會有所下降。

Commercial, while solid with improved volumes over a year ago, has still not yet returned to full pre-COVID levels. And the most recent put-in-place figures support a continuation of the activity levels we've been experiencing, at least in the near term.

商業雖然穩定，銷售量比一年前有所改善，但仍未完全恢復到新冠疫情前的水平。最新公佈的數據支持我們所經歷的活動水平的持續，至少在短期內是如此。

Meanwhile, the single-family market in the US appears poised for a rebound in the coming quarters with recently declining mortgage rates and a fundamental demand for new housing given the supply shortage of existing homes for sale. And for our Canadian business, the news is even more encouraging as we've seen improving starts levels and government-backed programs to promote immigration and population growth that are providing a stimulus to housing, setting up nicely the prospect of several years of residential growth.

同時，由於最近抵押貸款利率下降以及現有待售房屋供應短缺，對新房屋的基本需求，美國的單戶住宅市場似乎有望在未來幾季出現反彈。對於我們的加拿大業務來說，這個消息更加令人鼓舞，因為我們看到開工水平不斷提高，政府支持的促進移民和人口增長的計劃也刺激了住房市場，為未來幾年的住宅增長前景奠定了良好的基礎。

With that as our backdrop, let me move the expectations for our third quarter. First, looking at wallboard. As I said at the start of the call, the backlog in multifamily is still expected to be relatively strong for the quarter and should continue to provide positive year-over-year growth. We expect multifamily wallboard volumes to be up mid-teens as compared with a year ago. Commercial too should do well with wallboard volumes in that end market expected to be up mid-single digits. Single-family wallboard volume is expected to be down low single digits, a marked improvement in year-over-year comparisons.

以此為背景，讓我談談對第三季的預期。首先，看牆板。正如我在電話會議開始時所說，多戶住宅的積壓預計本季仍將相對強勁，並應繼續實現同比積極增長。我們預計多戶牆板的銷售量將比一年前增加十多歲。商業也應該表現良好，終端市場的牆板銷售量預計將成長中個位數。單戶牆板銷售量預計將下降低個位數，年比有顯著改善。

In total, we expect wallboard volume to be up mid-single digits with price mix flat to down just slightly from a year ago as single-family residential reverts to a more normal component of our mix. As we've reported, pricing for wallboard has remained steady in a relatively balanced capacity environment. Additionally, continued investment is required by our manufacturing partners to adjust to the declining availability of synthetic gypsum. As such, we expect continued relative stability in wallboard pricing for the remainder of our fiscal year with the potential for increases as the single-family market recovers.

總的來說，隨著單戶住宅恢復到我們組合中更正常的組成部分，我們預計牆板銷量將增長中個位數，而價格組合將與一年前持平或略有下降。正如我們所報導的，牆板的定價在相對平衡的產能環境中保持穩定。此外，我們的製造合作夥伴需要持續投資，以適應合成石膏供應量下降的情況。因此，我們預計在本財年剩餘時間裡，牆板定價將繼續保持相對穩定，並且隨著單戶住宅市場的復甦，價格可能會上漲。

In ceilings for our fiscal third quarter, given our expectation of continued solid demand in our commercial end market, including encouraging prospects for increases in remodel projects as indicated by our backlog and channel checks, we expect a mid to high single digit increase year over year in ceiling volumes with price and mix up low single digits.

在我們第三財季的上限中，考慮到我們對商業終端市場持續強勁需求的預期，包括我們的積壓訂單和渠道檢查表明改造項目增加的令人鼓舞的前景，我們預計同比將出現中高個位數增長數量上限與價格混合在一起，低個位數。

For steel framing, demand should remain solid with volumes expected to be up low double digits as compared with a year ago. Pricing will continue to be challenging for our fiscal third quarter with expectations of sequential improvement as we move into the year end. As compared with the third quarter of fiscal 2023, price and mix for steel framing is expected to be down nearly 25%, which will again impact our net sales, SG&A leverage, and other financial metrics for the quarter. We expect to see solid growth in our complementary products as we continue to focus on expanding our sales of these offerings.

對於鋼框架，需求應保持強勁，預計銷量將比一年前增長兩位數。我們第三財季的定價將繼續面臨挑戰，預計隨著年底的到來，定價將持續改善。與 2023 財年第三季相比，鋼框架的價格和結構預計將下降近 25%，這將再次影響我們本季的淨銷售額、SG&A 槓桿和其他財務指標。隨著我們繼續專注於擴大這些產品的銷售，我們預計我們的互補產品將實現穩健成長。

For our fiscal third quarter, our complementary products year-over-year sales growth should be up high single digits to low double digits for the quarter. Given all these expectations, we anticipate total net sales for our fiscal third quarter to be up low single digits as compared with a year ago. Gross margin will likely be consistent with last quarter and adjusted EBITDA is expected to be in the range of $123 million to $127 million for the quarter.

對於我們的第三財季，我們的互補產品銷售額年增應該會從高個位數成長到低兩位數。考慮到所有這些預期，我們預計第三財季的總淨銷售額將比去年同期成長低個位數。毛利率可能與上季保持一致，調整後的 EBITDA 預計在 1.23 億美元至 1.27 億美元之間。

Overall, we expect another solid level of performance for the third quarter. And as we approach the end of calendar 2023 and look ahead, we have reasons to be optimistic. First, although multifamily in the US will slow down once the backlog is worked through, given the fundamentals underlying and supporting housing demand, coupled with an improving interest rate outlook, we expect improving sequential trends in single family through the balance of our fiscal year and likely beyond.

總體而言，我們預計第三季的業績將繼續保持穩健水準。隨著 2023 年即將結束，展望未來，我們有理由保持樂觀。首先，儘管積壓的問題得到解決後，美國的多戶住宅增速將會放緩，但考慮到基本面和支撐住房需求的因素，再加上利率前景的改善，我們預計單戶住宅的連續趨勢將透過我們財政年度的平衡和財政年度的平衡而改善。可能超出。

Commercial too is expected to continue to do well for the time being while tighter lending standards may cause an air pocket in demand at some point next calendar year activity levels are solid for now, and we believe easing within the credit markets will drive expansionary improvements.

商業活動預計暫時將繼續表現良好，而更嚴格的貸款標準可能會在明年某個時候導致需求出現空洞，目前活動水平穩固，我們相信信貸市場的寬鬆政策將推動擴張性改善。

All in all, we believe that we are well positioned with flexibility built into our operations to pivot our efforts as demand levels change in our end markets, which we are confident will help us to continue to drive growth and profitability as we deliver long-term value for all of our stakeholders.

總而言之，我們相信我們處於有利位置，我們的營運具有靈活性，可以隨著終端市場需求水平的變化而調整我們的努力，我們相信這將幫助我們在實現長期目標的同時繼續推動增長和盈利能力為我們所有利害關係人創造價值。

I'd like to close out our call today by thanking our customers, our suppliers, teammates, and shareholders for your continued support. And I'd like to wish you all a joyous holiday season.

在結束今天的電話會議時，我想感謝我們的客戶、供應商、團隊成員和股東的持續支持。我祝大家節日快樂。

Operator, please open the line for questions.

接線員，請開通提問線。

(Operator Instructions) Trey Grooms, Stephens.

（操作員指示）Trey Grooms、Stephens。

Good morning. This is [Norman Castro] on for Trey. Thanks for taking my questions and congrats on the strong results and maybe more than more morning mine. So I'm starting off here. First, thank you for all the detailed commentary on your demand outlook. But if we maybe dig a little bit deeper here on the single-family side, still expecting some volume pressure as we look at the third quarter, but it sounded pretty constructive in terms of the potential for sequential improvement from there.

早安.這是特雷的[諾曼·卡斯特羅]。感謝您回答我的問題，並祝賀我取得的優異成績，也許比我早上的成績還要好。所以我從這裡開始。首先，感謝您對需求前景的詳細評論。但如果我們在單戶住宅方面進行更深入的研究，在我們展望第三季時仍然預計會出現一些銷售壓力，但就從那時起連續改善的潛力而言，這聽起來相當有建設性。

So I guess is it reasonable to expect maybe some growth as we look at the 4Q or just given where wallboards typically installed in the building process, is that potentially later more of a fiscal '25 event?

因此，我認為，當我們審視第四季度時，預期會出現一些增長是否合理，或者考慮到牆板通常安裝在建築過程中的位置，這是否可能是以後更多的「25 財年事件」？

We'll probably lap the lowest points over the course of fourth quarter, first quarter, and second quarter of next year. So we should be getting some sequential growth based on what we expect to see from continuing starts. What we have seen from starts already should indicate some growth as early as our fourth quarter, yes. Very slight, but yes.

我們可能會在明年第四季、第一季和第二季達到最低點。因此，根據我們對持續啟動的預期，我們應該會獲得一些連續成長。我們從一開始就看到的情況應該表明最早在第四季度就會出現一些增長，是的。非常輕微，但是是的。

Got it. That makes sense. And then as we think again, maybe longer term in the fiscal '25, potentially seeing growth on the single-family side. Sounds like commercial is holding in for now. But in a scenario where you've got those two end markets diverging, can you just remind us of the mix impacts as it relates to price? I know it has different impacts on the gross margin and SG&A. But when you get down to EBITDA, is there really much of a difference there?

知道了。這就說得通了。然後，正如我們再次思考的那樣，也許從 25 財年的長期來看，單戶住宅可能會出現成長。聽起來商業廣告目前還在繼續。但是，在這兩個終端市場出現分歧的情況下，您能否提醒我們與價格相關的混合影響？我知道它對毛利率和銷售管理費用有不同的影響。但當你認真考慮 EBITDA 時，你會發現兩者之間真的有很大差異嗎？

No, there's not. You summarized it perfectly. Smart and different. A little bit of SG&A difference on the commercial and multifamily. So a little bit better margins -- gross margins. Little bit higher costs. But at the end of the day, they both end up -- both the new single-family ends up being very similar in profitability to commercial and multifamily.

不，沒有。你總結的很到位啊聰明又與眾不同。商業住宅和多戶住宅的 SG&A 略有差異。所以利潤率要好一點——毛利率。成本稍微高一點。但最終，它們的結局都是——新的單戶住宅的盈利能力與商業和多戶住宅的盈利能力非常相似。

David Manthey, Baird.

大衛曼蒂，貝爾德。

Hi. Good morning, everyone. Really encouraging results here and good outlook. Thank you. So first off, with the steel and the visibility you have into pricing there along with more balance sheet strength, can you typically raise prices slightly faster than the pace of that higher cost inventory working through your balance sheet and your P&L, so there might be a slight margin opportunity, especially given the visibility you have on that now?

你好。大家，早安。這裡的結果確實令人鼓舞，前景良好。謝謝。因此，首先，憑藉鋼材和定價的可見性以及資產負債表的實力，您通常可以比資產負債表和損益表中較高成本庫存的速度略快地提高價格嗎？一個微小的利潤機會，特別是考慮到你現在對此的了解？

Dave, what I would say is there's two dynamics there. You've got the quoted piece, which is kind of a locked-in piece, which is a large percentage of it, which is your quoted commercial work. And then there's your stock steel work. In your stock steel work, I would expect if the availability is to tighten up as we think then, yes, there is the opportunity to be a little bit in front of the pricing that we're receiving. On the other hand, the negotiation around the quoted piece is one that we probably could see a little bit of in the near term when prices go up a little bit of squeezing.

戴夫，我想說的是有兩個動力。你已經得到了被引用的作品，這是一種鎖定的作品，佔其中的很大一部分，這是你引用的商業作品。然後是庫存鋼材。在你們的庫存鋼鐵工作中，我預計如果供應量如我們所想的那樣收緊，是的，有機會稍微領先於我們收到的定價。另一方面，當價格略有上漲時，我們可能會在短期內看到圍繞所引用的部分的談判。

So I would just say all in all through this increased cycle, if we're going to get into a new increase cycle and it certainly appears like we're going to at least in the near term, we'll probably be able to keep margins flat during that period. I don't think we'll be able to increase them significantly but because of those two assets.

因此，我只想說，在這個成長週期中，如果我們要進入一個新的成長週期，並且至少在短期內我們肯定會這樣做，那麼我們可能能夠保持在此期間利潤率持平。我不認為我們能夠顯著增加它們，但因為這兩項資產。

I would just reiterate, from past discussions, we turned steel inventory pretty fast to about 9 times. So there typically isn't much inventory impact as we work through those pricing changes.

我想重申一下，根據過去的討論，我們的鋼鐵庫存很快就增加到了 9 倍左右。因此，當我們處理這些定價變化時，通常不會對庫存產生太大影響。

Yeah. Okay. Thank you, Scott. And then there certainly are a lot of folks there at GMS that have lived through more than one cycle. And I'm just wondering if we can tap your brains, I assume you tap theirs just in terms of any wisdom that they've shared relative to the current interest rate situation and sort of how things might play out, things that we may not have thought of at this point would be helpful.

是的。好的。謝謝你，斯科特。當然，GMS 的許多人都經歷過不只一個週期。我只是想知道我們是否可以挖掘你的大腦，我假設你只是根據他們分享的有關當前利率狀況的任何智慧以及事情可能會如何發展，我們可能不會的事情來挖掘他們的大腦在這一點上想到會有所幫助。

Speaking primarily about a commercial cycle because I think we're in the bottom of the residential, right? The new residential seems to hit bottom. And most likely, if we come off of this interest rate environment, there shouldn't be much of a lag. And there isn't apparently according to the most the homebuilders' reports. There isn't much of a lag in activity from interest rates coming down to two building of homes.

主要談論商業週期，因為我認為我們正處於住宅市場的底部，對吧？新住宅似乎已經觸底。最有可能的是，如果我們擺脫這種利率環境，就不會有太大的延遲。根據大多數房屋建築商的報告，顯然沒有。利率下降到建造兩棟房屋的活動並沒有太大的延遲。

The commercial one on the other hand, it's a longer period of time. So we're still experiencing the strength of the projects that, of course, broke ground a year ago and remodel projects that were basically financed when things were a little bit easier out there. I do think we'll see an air pocket in commercial, but we have a real strong remodel component and remodel historically has been less volatile than new in commercial. And so I think that will help us.

另一方面，商業廣告的時間較長。因此，我們仍在體驗這些項目的實力，當然，這些項目是一年前破土動工的，並對項目進行了改造，這些項目基本上是在事情稍微容易一點的時候融資的。我確實認為我們會在廣告中看到一個氣穴，但我們有一個真正強大的改造組件，而且從歷史上看，改造的波動性比商業中的新改造要小。所以我認為這對我們有幫助。

And also, we were booked back looking again, Dave, at the volumes. But we're still not back. Our industry -- ourselves and our industry, I have guaranteed that. Are still not back to pre-COVID levels in volumes in wallboard and steel in the neighborhood of 10%.

而且，戴夫，我們還被預訂再次查看卷。但我們還沒回來。我們的行業——我們自己和我們的行業，我保證這一點。牆板和鋼材的產量仍未恢復到新冠疫情爆發前 10% 左右的水平。

So whatever happens in commercial going forward, I just don't see it being a draconian event. I don't see it being off 20% like we saw single-family just hit the break so hard a year ago and now we're down in there over the course of the last couple of quarters having significant double digits declines in volume. I just don't see commercial doing that.

因此，無論未來商業領域發生什麼，我都不認為這是一個嚴酷的事件。我不認為它會像一年前看到單戶住宅那樣猛烈地突破 20%，而現在我們在過去幾季中出現了成交量大幅兩位數下降的情況。我只是沒有看到商業這樣做。

Will it soften ? Certainly will. I think you can't with the ABI and the financing being as tight as it has been, I think it will soften into 2025, the back half of our fiscal 2025. I also think it's going to be fully offset by single-family activity because I don't think it's going to be a real dramatic change. And post that period, I also think that there's a lot of pent-up demand out there. You're reading about it every day, whether it's the conversion of office space to single or to multifamily or just in general. Our channel checks are indicating increased remodel activity in office. Some of that being driven purely because it hasn't been done in a long time.

會軟化嗎？當然會。我認為 ABI 和融資一直如此緊張，我認為這種情況將在 2025 年（我們 2025 財年的後半段）有所緩解。我還認為，單戶家庭活動將完全抵消這一影響因為我認為這不會是一個真正的戲劇性變化。在那段時期之後，我還認為存在著大量被壓抑的需求。您每天都會讀到相關內容，無論是將辦公空間轉變為單戶型、多戶型或一般型。我們的渠道檢查顯示辦公室的改造活動增加。其中一些純粹是因為很長時間沒有完成而被推動的。

So I do feel like we'll see some slowdown in commercial, but we're not expecting it to be off 15% or something like that.

所以我確實覺得我們會看到商業廣告放緩，但我們預計不會下降 15% 或類似的情況。

Commercial is about two-thirds remodel, correct?

商業大約有三分之二是改造，對嗎？

Yeah. Historically, that's right. It's a little less than that right now because of the softness in office. So it's closer into that 50-50 range. But in a historical market, our remodel would be two-thirds. That's right.

是的。從歷史上看，確實如此。由於辦公室的疲軟，它比現在要少一些。所以它更接近 50-50 的範圍。但在歷史市場中，我們的改造將是三分之二。這是正確的。

Matthew Bouley, Barclays.

馬修·博利，巴克萊銀行。

Good morning. This is Anika Dholakia here on for Matt. Thanks for taking my question. So first off, just curious if you could give us a little more detail on the strength in multifamily that you guys are seeing this quarter. And moving forward, I know you guys noted that backlog should carry us through fiscal year and further growth into 2024. So I guess, given just starts are so much weaker, when do you see this pressure coming? Is it more of a fiscal '25 story or could it potentially be earlier? Thanks.

早安.我是阿尼卡·多拉基亞 (Anika Dholakia) 為馬特代言。感謝您提出我的問題。首先，我想知道您是否可以向我們提供更多有關本季多戶住宅實力的詳細資訊。展望未來，我知道你們注意到積壓應該讓我們度過整個財年並進一步增長到 2024 年。所以我想，鑑於剛開始的情況要弱得多，您認為這種壓力什麼時候會到來？這更像是 25 財年的故事還是可能更早？謝謝。

And we think it's fiscal '25. I mean, we just did the math on starts and completions. I think it's the same math that you guys have done, and everybody does. And we just experienced, of course, the single-family backlog environment and worked ourselves through that. And so between that experience in the math, I think it's fiscal '25 before we start to see significant slowdown.

我們認為現在是 25 財年。我的意思是，我們只是對開始和完成進行了數學計算。我認為這與你們所做的數學相同，而且每個人都做。當然，我們剛剛經歷了單戶積壓的環境，並努力解決了這個問題。因此，根據數學方面的經驗，我認為要到 25 財年我們才會開始看到經濟大幅放緩。

Understood. Thank you. And then for my second question, I know steel deflation was a large headwind this quarter and you guys are seeing further pressure into the third quarter. Do you have a sense of maybe the magnitude of pressure that you see in 3Q ahead of it flattening in 4Q? Thank you.

明白了。謝謝。對於我的第二個問題，我知道鋼鐵通貨緊縮是本季的一大阻力，你們會看到第三季的進一步壓力。在第四季趨於平緩之前，您是否感覺到第三季的壓力有多大？謝謝。

We talked about sort of the $85 million impact in the third quarter. I'd say based on our projections for Q3, it's probably still meaningful, but less than that. Probably in the ballpark of about $50 million. And you can slow that down through the P&Ls in a similar fashion to what we saw in Q2. Still impactful, but less than we saw in Q2.

我們談到了第三季 8500 萬美元的影響。我想說，根據我們對第三季的預測，它可能仍然有意義，但意義較小。大概在 5000 萬美元左右。您可以透過損益表放慢這一速度，就像我們在第二季度看到的那樣。仍然有影響力，但比我們在第二季度看到的要小。

Mike Dahl, RBC Capital Markets.

麥克·達爾，加拿大皇家銀行資本市場部。

Morning. Thanks for taking my questions. I wanted to stick with multifamily. I mean, I think it's helpful the way you articulated the balance between the single family and commercial on that by the time commercial season decline in single-family could make up for it. It does seem like multifamily declines could be more meaningful and those cycles can potentially last a little longer given it is credit and cap rate induced, um, so how are you I guess, if single-family offsets commercial, how are you thinking about the impact from multifamily in '25 and beyond. And just remind us at this point, what percentage of your business is multifamily?

早晨。感謝您回答我的問題。我想堅持多戶家庭。我的意思是，我認為你闡明單戶家庭和商業之間的平衡的方式很有幫助，到時候單戶家庭商業季節的下降可以彌補這一點。看來多戶住宅的下降可能更有意義，考慮到信貸和資本化率引起的，這些週期可能會持續更長的時間，嗯，所以我猜你怎麼樣，如果單戶住宅抵消了商業，你如何考慮25 年及以後多戶家庭的影響。此時請提醒我們，您的企業中多戶型的比例是多少？

Well, we use wallboard as a proxy. In our wallboard volume, it's about 17%. It's less than that as a total revenue component. Probably down in that 12% to 15% range is multifamily. And so I almost throw multifamily commercial together. And so you got to put those two markets together. And single family is 50% plus of the overall wallboard business. And probably when we get into a more normalized market, 50% plus of our overall revenue.

好吧，我們使用牆板作為代理。在我們的牆板體積中，大約是 17%。它低於總收入的組成部分。可能在 12% 到 15% 的範圍內較低的是多戶住宅。所以我幾乎把多戶廣告放在一起。所以你必須把這兩個市場放在一起。單一家庭佔整個牆板業務的 50% 以上。也許當我們進入一個更標準化的市場時，我們總收入的 50% 以上。

So if we see single-family come back meaningfully, it's, in my mind, a full offset to whatever we would see in multifamily and commercial. Again, my expectation of commercial is not to be off in the teens. Probably I would imagine single digits to maybe the bottom, low double at the best. And then multifamily can be off, it's 15% or 20%. And you'd still get a full offset of single family.

因此，如果我們看到單戶住宅有意義地回歸，在我看來，這將完全抵消我們在多戶住宅和商業住宅中看到的一切。再說一次，我對廣告的期望是不要在青少年時期就消失。也許我會想像個位數可能是底部，最好是低雙數。然後多戶住宅可以降低 15% 或 20%。而且你仍然可以獲得單身家庭的全額補償。

I'm hoping it's not that bad on the multifamily and the commercial side. It just doesn't feel like whatever this next year is coming into that, that we're going to have that deep of a correction from a commercial perspective. We certainly will bounce and it would be very volatile and multifamily.

我希望多戶住宅和商業方面的情況不會那麼糟。只是感覺無論明年會發生什麼，我們都不會從商業角度進行如此深刻的修正。我們肯定會反彈，而且會非常不穩定，而且是多戶家庭。

The other offset to multifamily down the road, of course, is you are hearing more and more every day about the conversion from office to multifamily. So that's going to happen, and that's more of a remodel activity. And again, we're very strong in that area. So I would expect that to be a degree of an offset as we get there.

當然，未來多戶住宅的另一個抵消因素是，您每天都會聽到越來越多的從辦公室轉變為多戶住宅的消息。所以這將會發生，而且這更多的是一種改造活動。再說一次，我們在這個領域非常強大。因此，我預計當我們到達那裡時，這將是一定程度的抵消。

And then I mean, the reality is further down the road. Every day, you can pick up the paper and not read about -- I'm aging myself there when I pick up the paper, by the way. I don't actually do that. I use my phone. But when we read everything from the journal -- really doesn't matter what you read, you see, government stimulus is engaged today across all of North America in driving multifamily construction for the long haul because the only way to provide affordable house.

我的意思是，現實還很遙遠。每天，你可以拿起報紙而不去讀——順便說一句，當我拿起報紙時，我已經在那裡變老了。我實際上不這樣做。我用我的手機。但是，當我們閱讀雜誌上的所有內容時，無論您讀到什麼，您都會發現，今天整個北美地區都在採取政府刺激措施，以長期推動多戶住宅建設，因為這是提供經濟適用房的唯一途徑。

And I feel like we're going to get through whatever this air pocket is going to be in '24, or fiscal '25. And you're really going to have a pretty strong fundamental position for housing, all housing going out into the end of the decade.

我覺得我們將在 24 或 25 財政年度過這個氣穴。住房方面確實將擁有相當強勁的基本面，所有住房都將在本十年末推出。

And the last point is particularly notable in Canada, where the relative mix of multifamily is higher versus single family in that market.

最後一點在加拿大尤其值得注意，市場中多戶家庭的相對比例高於單戶家庭。

Yeah, that's all very helpful, certainly. But the last point I fully agree with in terms of the importance longer term of multi-family and serving affordability. With these puts and takes so shifting to the pricing dynamic, if you play that out, you talked about potential for price increases in wallboard as single-family strengthens. So you'd have potentially the half-inch market weakening and then single-family strengthening. How does that typically play out in terms of then what happens with pricing? Would you still expect broad increases across wallboard products, or would it be a little bit more targeted in terms of maybe not seeing increases on half-inch, but seeing increases on your single-family business? How you typically seen that play out?

是的，這當然非常有幫助。但我完全同意最後一點，即多戶家庭和服務負擔能力的長期重要性。隨著這些看跌期權和看跌期權轉向定價動態，如果你把它弄清楚，你就會談到隨著單戶住宅的增強，牆板價格上漲的潛力。因此，半英寸市場可能會走弱，然後單戶住宅市場會走強。就定價而言，這通常會如何發揮作用？您是否仍然期望牆板產品大幅增長，或者是否更有針對性，可能不會看到半英寸的增長，但會看到您的單戶企業的增長？您通常如何看待這種情況？

When single-family is strong, it's the capacity situation. It eat up a lot more capacity is much bigger part of the overall market historically. So it's across the board, it's across the board. I mean, really, if you look at the commercial products, we actually run slower. And so generally speaking, if you're capacity constrained because you're running off single-family product, there's no reason to consider [five-eights] -- the decline in price in five-eights.

當單戶家庭強大時，就是容量狀況。從歷史上看，它消耗了更多的容量，佔整個市場的更大部分。所以這是全面的，這是全面的。我的意思是，真的，如果你看看商業產品，我們實際上運行得更慢。所以一般來說，如果你的產能受到限制，因為你正在耗盡單戶產品，那麼就沒有理由考慮[五八]——五八的價格下降。

Kurt Yinger, D.A. Davidson.

庫爾特·英格，D.A.戴維森。

Thanks, and good morning, everyone. On the ceiling side in the last couple of quarters, you've talked about kind of the greenfields and some expanded vendor relationships. Can you maybe talk about how those factors played into the strength you saw this past quarter and maybe also touch on just competitive dynamics and how you're thinking about any additional kind of share opportunities within that market?

謝謝，大家早安。在過去幾個季度的天花板方面，您談到了某種綠地和一些擴大的供應商關係。您能否談談這些因素如何發揮您在上個季度看到的優勢，也許還可以談談競爭動態，以及您如何考慮該市場中任何其他類型的份額機會？

Sure. I mean, our organic efforts are absolutely paying dividends. No question about that. I would probably though point out more to the strength in the remodel sector and our channel checks telling us that the increase in office remodel and tenant improvement work, smaller work, medium-size work, suburban work. All those things seem to be strengthening a little bit right now. And so that would really be the bigger driver and probably why we're expecting again, a pretty strong quarter going forward.

當然。我的意思是，我們的有機努力絕對會帶來回報。毫無疑問。不過，我可能會更指出改造產業的實力，我們的通路檢查告訴我們，辦公室改造和租戶改善工作、小型工作、中型工作、郊區工作的增加。所有這些事情現在似乎都在加強。因此，這確實是更大的驅動因素，也可能是我們再次期待未來相當強勁的季度的原因。

Got it. Okay. That makes sense. And then just second within complementary products, can you talk about any internal initiatives you have to maybe expand the strength in those categories across more of the footprint and what you're prioritizing to grow the business organically at this stage?

知道了。好的。這就說得通了。然後，在互補產品中，您能否談談您必須採取的任何內部舉措，以擴大這些類別的實力，涵蓋更多的足跡，以及您在現階段優先考慮什麼來有機地發展業務？

It's both product -- it's both vendor relationships in our tools and backlogs, and M&A, and tools and fasteners. We bought Tanner. We just bought AMW out there in Phoenix. And so we'll continue down that path from an M&A perspective as well. But those acquisitions also provide expertise for us to help grow organically. And we've been growing our sales teams in this area and our leadership teams in this area across all of our divisions and both in tools and fasteners, EIFS and stucco, primarily a southern United States effort and then insulation.

它既是產品，也是我們的工具和積壓訂單中的供應商關係，以及併購、工具和緊固件。我們買了坦納。我們剛剛在鳳凰城購買了 AMW。因此，我們也將從併購的角度繼續沿著這條道路走下去。但這些收購也為我們提供了專業知識，幫助我們實現有機成長。我們一直在擴大我們在該領域的銷售團隊以及我們所有部門的領導團隊，包括工具和緊固件、EIFS 和灰泥（主要是美國南部的努力，然後是絕緣材料）。

So we've been growing -- as we get bigger, we are able to specialize our sales force. And that's fairly meaningful when you're able to do that, when you can take these types of products and not have to have a generalists out there, selling them with the key volumes still for most of our generalists, obviously, our core products. So when you get big enough and have scale and you can afford to have the sales forces out there dedicated and expertise dedicated to this complementary product mix, we're seeing huge success with that.

所以我們一直在成長——隨著我們變得更大，我們能夠專業化我們的銷售團隊。當你能夠做到這一點時，當你可以使用這些類型的產品而不必擁有多面手時，這是相當有意義的，並且以我們大多數多面手（顯然是我們的核心產品）的關鍵銷量銷售它們。因此，當您變得足夠大並具有規模並且您有能力擁有專門的銷售人員和致力於這種互補產品組合的專業知識時，我們就會看到巨大的成功。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Hey, good morning. This is actually Brian Biros on for Steven. Thank you for taking my questions. First, I guess it sounds like you are addressing any meaningful positive or cancellations in all your activity yet, but obviously expecting an air pocket eventually. Because outside of office, which sounds like it's actually not doing so bad, right now. Are there any verticals or geographies that look like they would be the next to see kind of downward pressure based on what you're seeing today?

嗨，早安。這實際上是布萊恩比羅斯 (Brian Biros) 為史蒂文 (Steven) 配音的。感謝您回答我的問題。首先，我想聽起來您正在解決所有活動中任何有意義的積極或取消的問題，但顯然最終會出現氣泡。因為在辦公室之外，聽起來實際上現在的情況並沒有那麼糟。根據您今天所看到的情況，是否有任何垂直行業或地區看起來將是下一個面臨下行壓力的行業？

The West Coast has been the softest throughout the entire period. And so it's still soft with the multifamily has been fine out there, but it's been soft across the board when you ask about geography. That's really the softest geographies, the West for us. But none of the verticals themselves are indicating any more softness than each other. I mean, if you look at the put-in-place numbers too, it's fairly reflective of that type of the key construction related categories are all kind of in that high single to low double digit range as far as activity goes.

整個時期西海岸是最軟的。因此，多戶住宅的情況仍然很疲軟，但當你問及地理位置時，整體情況都很疲軟。對我們來說，西部確實是最柔軟的地區。但垂直方向本身並沒有表現出比其他垂直方向更柔軟的感覺。我的意思是，如果你也看看到位的數字，它相當反映了關鍵建設相關類別的類型，就活動而言，都處於高個位數到低兩位數的範圍內。

And last follow-up would be just provide more color on the kind of just the overall platform expansion strategy here as we end the year. I guess more specifically the AMES stores and the acquired tools distributor, you guys mentioned. I think you mentioned earlier some acquisitions, added some expertise. So I guess we'll just be interested to hear how you think you can capitalize on that and kind of roll that expertise type stuff out across the platform? Thank you.

最後的後續行動只是在年底時為整體平台擴展策略提供更多色彩。我想更具體地說是你們提到的 AMES 商店和收購的工具經銷商。我想你之前提到了一些收購，增加了一些專業知識。所以我想我們只是有興趣聽聽您認為如何利用這一點，並在整個平台上推廣專業知識類型的東西？謝謝。

Yes. It relates back to -- so organically, just relates back with the answer to the previous question. And that is primarily using resources that really know and understand that business and understand the supply of those products better and helping our purchasing teams do a better job of nationalizing our approach to the buying of a lot of those products.

是的。它與上一個問題的答案有機地聯繫在一起。這主要是使用真正了解和了解該業務並更好地了解這些產品供應的資源，並幫助我們的採購團隊更好地實現我們購買大量此類產品的方法的國有化。

To give you an example. Our fasteners business was up pretty dramatically in the quarter as a percentage is still small part of the overall business. But a lot of that is just us being smarter and better about how we buy those products, providing a competitive price for all of our teams. So we're doing a lot on the backside, I would say, on purchasing and also some logistics support with our internal company that we call TSW, which is an internal distribution arm, primarily for complementary products.

給你舉個例子。我們的緊固件業務在本季大幅成長，但僅佔整體業務的一小部分。但這在很大程度上只是我們在如何購買這些產品方面變得更聰明、更好，為我們所有的團隊提供了有競爭力的價格。因此，我想說，我們在後端做了很多工作，包括採購以及與我們稱為 TSW 的內部公司的一些物流支持，TSW 是一個內部分銷部門，主要負責互補產品。

But then also that focus on sales teams that I just answered. The more and more that we can generate enough volume to afford to have specialization, the better we do, and that's continuing to roll out across business. And then our M&A. We'll continue to do M&A in that channel.

但我剛剛回答的也關注銷售團隊。我們能夠產生越來越多的足夠的數量來承擔專業化的費用，我們做得就越好，並且這將繼續在整個業務中推廣。然後是我們的併購。我們將繼續在該通路進行併購。

Thank you. That concludes our question-and-answer session and to also conclude our call for today. Thank you for joining us. At this time, you may disconnect your lines at this time. Thank you for your participation.

謝謝。我們的問答環節到此結束，我們今天的呼籲也到此結束。感謝您加入我們。這時候你就可以斷開你的線路了。感謝您的參與。