GMS Inc (GMS) 2024 Q3 法說會逐字稿

Greetings, and welcome to GMS Inc. third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 GMS Inc. 2024 年第三季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Carey Phelps, Vice President and Investor Relations. Thank you. Ms. Phelps, you may begin.

現在我很高興向您介紹主持人凱裡·菲爾普斯 (Carey Phelps)，她是兼投資者關係副總裁。謝謝。菲爾普斯女士，您可以開始了。

Thank you. Good morning and thank you for joining us for the GMS earnings conference call for the third quarter of fiscal 2024.

謝謝。早安，感謝您參加我們 2024 財年第三季的 GMS 財報電話會議。

I'm joined today by John Turner, President and Chief Executive Officer; and Scott Deakin, Senior Vice President and Chief Financial Officer. 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.

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。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。

As detailed on slide 2, 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. As a reminder, forward-looking statements represent management's current estimates and expectations.

正如投影片 2 所詳述，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控制範圍，可能導致實際結果與今天討論的結果不同。提醒一下，前瞻性陳述代表管理階層目前的估計和期望。

The company assumes no obligation to update any forward-looking statements 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 Factors section in the company's 10-K and other periodic reports.

該公司不承擔未來更新任何前瞻性陳述的義務。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 to the third quarter of fiscal 2024 relate to the quarter ended January 31, 2024.

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，本次電話會議中提到的 2024 財年第三季涉及截至 2024 年 1 月 31 日的季度。

(Event Instructions)

（活動須知）

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

接下來，我會將電話轉給 John Turner，他的討論將從投影片 3 開始。傑特？

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。

I would also like to thank our team for, once again, executing against our key initiatives and delivering outstanding service and solid results this quarter. Volume growth was realized across all of our major product categories, as we benefited both from our organic efforts and from the contributions of recent acquisitions. And, except in steel, pricing remained resilient, and in total, accretive to growth as compared with a year ago.

我還要再次感謝我們的團隊在本季度執行我們的關鍵舉措並提供出色的服務和紮實的業績。我們所有主要產品類別的銷售都實現了成長，因為我們受益於我們的有機努力和最近收購的貢獻。而且，除鋼鐵外，價格仍然保持彈性，總體而言，與一年前相比，促進了成長。

Our increase in total net sales versus last year was achieved despite significant steel price deflation, which we expected, along with the near-term headwind of adverse weather conditions that we faced in late January. Typical weather forced all but one of our geographic divisions to shut down locations temporarily during the week of January 15, delaying sales into the early part of our fourth quarter.

儘管我們預計鋼材價格將大幅下跌，而且一月下旬我們面臨不利天氣條件的短期阻力，但我們的總淨銷售額仍較去年有所增長。1 月 15 日這一周，典型的天氣迫使我們除一個地理部門外的所有部門都暫時關閉了門店，從而將銷售推遲到了第四季度初。

Still, even with these challenges, we were pleased to deliver third quarter net income of $51.9 million and adjusted EBITDA of $128 million, which were both above our previously communicated expectations.

儘管如此，儘管面臨這些挑戰，我們仍很高興實現第三季淨利潤 5,190 萬美元，調整後 EBITDA 為 1.28 億美元，這都高於我們先前傳達的預期。

During the quarter, strong multifamily and commercial end market demand, along with an improving single-family backdrop and gains from acquisitions, helped drive volume growth in wallboard, ceiling, steel framing, and complementary products. And these trends are expected to continue as we anticipate delivering both year-over-year and sequential growth in net sales for our fourth quarter as we close out fiscal 2024 at the end of April.

本季度，強勁的多戶型和商業終端市場需求，加上單戶型背景的改善和收購帶來的收益，幫助推動了牆板、天花板、鋼框架和配套產品的銷售成長。這些趨勢預計將持續下去，因為我們預計在 4 月底結束 2024 財年時，第四季的淨銷售額將實現同比和環比增長。

While multifamily permits and starts do indicate a forthcoming slowdown, likely in the back half of this calendar year, for now, there remains a significant number of units still under construction. Commercial is also expected to continue its current pace of solid demand, as our internal and external channel checks indicate levels of backlog, consistent with those we experienced in our third quarter.

雖然多戶住宅的許可和開工確實表明經濟即將放緩，很可能在今年下半年，但目前仍有大量單位仍在建設中。由於我們的內部和外部管道檢查顯示積壓程度與我們第三季度經歷的情況一致，預計商業業務也將繼續保持當前的強勁需求步伐。

For single family, we are encouraged by the continuing uptick in new home orders reported by our builder customers and the three-month consecutive rise in builder confidence levels, reflecting expectations for an improving mortgage rig environment and the pronounced foundation of pent-up need for housing in a relatively supply-constrained environment.

對於單戶家庭，我們對建築商客戶報告的新房訂單持續增加以及建築商信心水平連續三個月上升感到鼓舞，反映出對抵押貸款環境改善的預期以及被壓抑的需求的明顯基礎。住房供應相對在緊張的環境中。

In addition, we are pleased with the continued resilience of pricing in wallboard, reinforcing what we continue to believe is a structurally changed industry, with low levels of recent new or planned capacity and rising manufacturing costs, particularly given the declining availability of synthetic gypsum. Pricing in ceiling and complementary products has also held up well, while steel framing has performed as expected, with prices down substantially year over year.

此外，我們對牆板定價的持續彈性感到滿意，這強化了我們仍然認為的行業結構性變化，近期新建或計劃產能水平較低，製造成本上升，特別是考慮到合成石膏供應量下降。天花板和配套產品的定價也保持良好，而鋼框架的表現符合預期，價格比去年同期大幅下降。

Although raw steel price indices began escalating roughly four months ago, it appears that these have now reached a near-term peak. As such, while we expect our prices to slightly increase sequentially for our fiscal fourth quarter, those prices will likely flatten for at least the near term thereafter.

儘管原鋼價格指數大約四個月前開始上漲，但目前看來已達到近期高峰。因此，雖然我們預計第四財季的價格將略有上漲，但至少在短期內這些價格可能會持平。

While navigating the near-term dynamics and end market demand and pricing, our teams have continued to deliver solid results and have maintained their focus on the successful execution of our four strategic pillars, which are highlighted on slide 4.

在應對近期動態以及終端市場需求和定價的同時，我們的團隊繼續取得紮實的成果，並繼續專注於成功執行投影片 4 中強調的四大策略支柱。

First, measuring against data from the Gypsum Association, the Steel framing Industry Association, and manufacturer disclosures, we believe that we have continued to expand our share in each of our core product categories. Customers across our end markets are seeing the value that our scale, expertise, product breadth, and commitment to delivering outstanding service provide.

首先，根據石膏協會、鋼框架產業協會的數據以及製造商所揭露的數據，我們相信我們在每個核心產品類別中的份額都在持續擴大。我們終端市場的客戶正在看到我們的規模、專業知識、產品廣度以及對提供卓越服務的承諾所帶來的價值。

In recent months, we have successfully secured a range of new projects, including expanding activity with some of the nation's largest residential homebuilders, while also winning commercial work in those sectors, which remain most active, primarily manufacturing, medical, education, government and data centers as well as participation in many of the mega projects underway across the country.

近幾個月來，我們成功獲得了一系列新項目，包括擴大與美國一些最大的住宅建築商的活動，同時也贏得了這些仍然最活躍的領域的商業工作，主要是製造、醫療、教育、政府和資料中心以及參與全國各地正在進行的許多大型專案。

Second, our complementary products category continues to grow as an increasingly important part of our product mix. This category has made up 30% of our sales so far this fiscal year. And as we've said in previous quarters, our aim is to grow this category twice the rate of our core products.

其次，我們的互補產品類別持續成長，成為我們產品組合中日益重要的一部分。本財年迄今為止，該類別已占我們銷售額的 30%。正如我們在前幾季所說的那樣，我們的目標是使該類別的成長速度是我們核心產品的兩倍。

In particular, we are placing emphasis on tools and fasteners, EIFS and stucco, and insulation, which collectively grew 11.7% for the quarter. While the total complementary products category grew 7.3%. Over time, we expect to continue to drive accelerated growth in this margin-accretive segment as a percentage of our overall net sales.

我們特別關注工具和緊固件、外牆外保溫系統 (EIFS) 和灰泥以及絕緣材料，這些產品本季總共成長了 11.7%。而配套產品類別總額增加了 7.3%。隨著時間的推移，我們預計將繼續推動這一利潤成長領域占我們整體淨銷售額的百分比的加速成長。

Third, we are seeing success with our many productivity initiatives and our push to drive complexity costs out of the business, while further realizing the benefits of our attractive scale position. Equipping our yard operators with the right tools and technologies continues to improve the efficiency of their operations.

第三，我們看到許多生產力措施取得了成功，並努力降低業務的複雜性成本，同時進一步實現了我們有吸引力的規模地位的好處。為我們的堆場操作員配備正確的工具和技術，不斷提高他們的營運效率。

Our e-commerce advancements are providing an enhanced customer experience and, among other features, offer an avenue for quick product, pricing, and order information, together with easy online payments, which customers are increasingly taking advantage of.

我們的電子商務進步正在提供增強的客戶體驗，除其他功能外，還提供了快速獲取產品、定價和訂單資訊以及輕鬆在線支付的途徑，客戶越來越多地利用這些優勢。

Additionally, we are consolidating a number of our legacy legal entities and merging back-of-house functionality, thereby reducing organizational and process complexity along with costs, while also leveraging the standardization of our product, vendor, customer, and other operational data across the business. Collectively, these initiatives help drive additional profitability in the business and make us better operators, further positioning GMS as the provider of choice for our customers.

此外，我們正在整合一些遺留的法人實體並合併後台功能，從而降低組織和流程的複雜性以及成本，同時還利用我們的產品、供應商、客戶和其他營運數據的標準化。商業。總的來說，這些舉措有助於提高業務獲利能力，讓我們成為更好的營運商，進一步將 GMS 定位為客戶的首選提供者。

Finally, our fourth strategic pillar is to expand our platform through accretive acquisition and greenfield opportunities. During the third quarter, we opened three new green deals, and we continue to focus on M&A to drive growth, with attractive opportunities in both our core and complementary businesses.

最後，我們的第四個策略支柱是透過增值收購和綠地機會來擴大我們的平台。第三季度，我們開啟了三項新的綠色交易，並繼續專注於併購以推動成長，在我們的核心業務和互補業務中提供有吸引力的機會。

In late December, as highlighted on slide 5, we capitalized on one of these opportunities and announced our agreement to purchase Kamco Supply Corp., a leading distributor of building products in the New York City market. We are very excited about the prospects of this transaction, which we expect to close in the coming days.

12 月下旬，正如幻燈片 5 所強調的那樣，我們利用其中一個機會，宣布同意收購 Kamco Supply Corp.，這是紐約市市場領先的建築產品分銷商。我們對這筆交易的前景感到非常興奮，預計將在未來幾天內完成。

Kamco's values and highly regarded execution discipline align very well with our own, and we are pleased to welcome the company's leadership and employees as they join GMS. Bringing Kamco into the GMS family of brands represents a unique opportunity to advance our strategic priorities, including expanding share in our core products and geographic expansion in the highly attractive New York City market.

Kamco 的價值觀和備受推崇的執行紀律與我們的價值觀非常契合，我們很高興歡迎公司領導層和員工加入 GMS。將 Kamco 納入 GMS 品牌系列是推進我們策略重點的獨特機會，包括擴大我們核心產品的份額以及在極具吸引力的紐約市市場進行地理擴張。

Additionally, as we continue to drive complementary products sales, this transaction will present cross-selling opportunities with other GMS operations in the area, including further expanding our leadership position in wallboard. We are very excited about becoming one of the top distributors in this key region, and we'll look to leverage Kamco's excellent reputation for customer service and operational execution as a base for further organic and inorganic expansion.

此外，隨著我們繼續推動互補產品的銷售，此次交易將提供與該地區其他 GMS 業務的交叉銷售機會，包括進一步擴大我們在牆板領域的領導地位。我們非常高興能夠成為這一關鍵地區的頂級分銷商之一，我們將利用 Kamco 在客戶服務和營運執行方面的卓越聲譽作為進一步有機和無機擴張的基礎。

Before turning the call over to Scott, who will cover more on this exciting transaction and our business results, I want, once again, to thank our team for maintaining our high level of service and performance during the quarter. We again successfully demonstrated the benefits of our end market balance and the flexibility and expertise we have in servicing each one. I am confident that we will continue to drive further growth and profitability as we execute on our strategic priorities.

在將電話轉給斯科特之前（他將詳細介紹這一令人興奮的交易和我們的業務成果），我想再次感謝我們的團隊在本季度保持高水準的服務和績效。我們再次成功地展示了我們終端市場平衡的好處以及我們在為每個客戶提供服務時所擁有的靈活性和專業知識。我相信，在執行我們的策略重點時，我們將繼續推動進一步的成長和獲利。

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.

謝謝，JT。大家，早安。

As just mentioned, in late December, we entered into an agreement to acquire Kamco Supply Corporation and affiliates for a purchase price of $321.5 million, inclusive of additional consideration in connection with the exit of a legacy pension fund.

正如剛才提到的，12 月底，我們簽訂了一項協議，以 3.215 億美元的價格收購 Kamco Supply Corporation 及其附屬公司，其中包括與退出遺留退休基金有關的額外對價。

Kamco, which generated $235 million in revenue during the 12 months ended December 31, 2023, has four legacy locations in the Greater New York City market, including yards in Brooklyn, Manhattan, Long Island, and Patterson. Plus, they recently added an important new greenfield location in the Bronx, which we believe will meaningfully add to Kamco's top-line growth.

Kamco 在截至 2023 年 12 月 31 日的 12 個月內創造了 2.35 億美元的收入，在大紐約市市場擁有四個傳統地點，包括布魯克林、曼哈頓、長島和帕特森的船廠。此外，他們最近在布朗克斯增加了一個重要的新綠地，我們相信這將有意義地促進 Kamco 的營收成長。

Before any expected synergies, Kamco has historically generated EBITDA margins roughly in line with the broader GMS business. In addition, over the next 24 to 36 months, we expect this transaction to generate cost and revenue synergies through the integration of our distribution networks and purchasing programs, cross-selling opportunities, notably for wallboard and complementary products, and SG&A savings. Moreover, as an asset transaction, we will have substantial tax benefits from intangibles amortization.

在產生任何預期的協同效應之前，Kamco 歷來產生的 EBITDA 利潤率與更廣泛的 GMS 業務大致一致。此外，在未來24 至36 個月內，我們預計此交易將透過整合我們的分銷網絡和採購計劃、交叉銷售機會（特別是牆板和補充產品）以及銷售管理費用節省，產生成本和收入協同效應。此外，作為一項資產交易，我們將從無形資產攤銷中獲得可觀的稅收優惠。

All in, including these synergies and tax attributes, we expect to pay just above a 7.5 times pro forma EBITDA multiple for this business. We expect to fund this transaction with cash on hand and from borrowings under our ABL, which we expect would, all else being equal, briefly raise our net debt leverage ratio by less than 0.5 turn, before returning to our current level over approximately the next year. We are very pleased to be nearing the close of this highly strategic transaction.

總而言之，包括這些協同效應和稅收屬性，我們預計將為該業務支付略高於預期 EBITDA 7.5 倍的費用。我們預計將用手頭現金和ABL 下的借款為此次交易提供資金，我們預計，在其他條件相同的情況下，這將短暫地將我們的淨債務槓桿率提高不到0.5 倍，然後在大約下一個季度恢復到當前水準。年。我們很高興這項高度策略性的交易即將完成。

With that, let me move on to our results for our fiscal third quarter. Starting with slide 6. Net sales for the quarter increased 1.9% to $1.3 billion, as volume growth across all of our major product categories, coupled with resilient pricing for nearly all of our product lines, helped to offset an estimated $55 million of steel price deflation, assuming current volumes have been sold at prior year prices.

接下來，讓我談談第三財季的業績。從投影片 6 開始。本季淨銷售額成長1.9%，達到13 億美元，因為我們所有主要產品類別的銷售成長，加上幾乎所有產品線的彈性定價，有助於抵銷估計5,500 萬美元的鋼鐵價格通貨緊縮（假設當前銷售）已以去年價格出售。

Also, as JT mentioned, in mid-January, harsh weather conditions across much of our service territory delayed project demand and slowed delivery execution, pushing an estimated $15 million of net sales into our fiscal fourth quarter. This also forced some temporary operational inefficiencies as our teams added weekend and overtime hours to keep our customers' projects moving forward.

此外，正如 JT 所提到的，1 月中旬，我們大部分服務區域的惡劣天氣條件延遲了專案需求並減慢了交付執行速度，導致第四財季淨銷售額預計達到 1500 萬美元。這也導致了一些暫時的營運效率低下，因為我們的團隊增加了週末和加班時間以保持客戶的專案順利進行。

Commercial and multifamily activity levels remained solid during the quarter, while the sentiment around single-family demand is improving. Our recent acquisitions, such as EMJ and Tanner, also contributed positively to our quarter's results. Organically, consolidated sales were essentially flat as compared with the same period a year ago.

本季商業和多戶型活動水準保持穩定，而單戶型需求的情緒正在改善。我們最近的收購，例如 EMJ 和 Tanner，也對我們季度的業績做出了積極貢獻。從有機角度來看，綜合銷售額與去年同期大致持平。

From a US end market perspective, multi-family sales dollars grew 8.2% year over year, while single-family sales dollars declined 6.1%, resulting in a total residential sales dollar decline of 2.4%.

從美國終端市場來看，多戶住宅銷售額較去年同期成長8.2%，而單戶住宅銷售額下降6.1%，導致住宅總銷售額下降2.4%。

Commercial sales dollars in the US grew 1.7% as increased sales volumes were muted by significant steel price deflation. Wallboard sales dollars of $520.7 million were up 4% over the same period last year, with multifamily and commercial volumes of 12.7% and 7.9%, respectively. Single-family volumes were down only 2.3% year over year. And based on our current run rates, given increasing sequential growth, we expect this comparison to turn positive for our fiscal fourth quarter.

美國的商業銷售額成長了 1.7%，因為鋼材價格大幅下跌抑制了銷售量的成長。牆板銷售額為 5.207 億美元，比去年同期成長 4%，多戶住宅和商業建築銷量分別成長 12.7% 和 7.9%。單戶住宅數量年減 2.3%。根據我們目前的運行率，考慮到連續增長的不斷增加，我們預計第四財季的這種比較將轉為正數。

Organically, third quarter wallboard sales were up 3.5% compared with the prior year period, comprised of a 3.6% increase in volume with a nearly flat price and mix component. For the third quarter, the average realized wallboard price was $473 per 1,000 feet, flat with a year ago and down slightly from our fiscal second quarter. Overall, wallboard pricing continues to be resilient, despite year-over-year declines in single-family wallboard volumes, for now five consecutive quarters.

從有機角度來看，第三季牆板銷售額與去年同期相比增長了 3.5%，其中銷量增長了 3.6%，而價格和組合成分幾乎持平。第三季度，牆板的平均實現價格為每 1,000 英尺 473 美元，與去年同期持平，比第二財季略有下降。總體而言，儘管單戶牆板銷售連續五個季度同比下降，但牆板價格仍保持彈性。

With continued improvement anticipated in the single-family space, and a developing renewal of price increase negotiations, we expect for wallboard pricing to improve at least slightly, both sequentially and year over year, for our fiscal fourth quarter.

隨著單戶住宅市場的持續改善，以及價格上漲談判的不斷更新，我們預計第四財季的牆板定價將至少略有改善，無論是環比還是同比。

Ceiling sales of $155.7 million in the quarter were up 6.1%, all from the benefit of increased volumes as any price benefits were offset by mix. Organic sales in ceilings grew 4.2%, with a 4.3% increase in volumes, slightly offset by a 0.1% decrease from price and mix.

本季最高銷售額為 1.557 億美元，成長 6.1%，這一切都得益於銷量增加，因為任何價格優勢都被混合產品所抵消。天花板有機銷售額成長 4.2%，銷量成長 4.3%，但被價格和產品組合下降 0.1% 略微抵銷。

Third-quarter steel framing sales of $203.4 million were down 13.3% versus the prior year quarter, as deflationary pricing drove a 24.3% decline in price and mix, while volumes increased 11%. Organically, steel framing sales were down 14%, with a 24.2% decline in price and mix, partially offset by 18.2% increase in volume.

第三季鋼框架銷售額為 2.034 億美元，較去年同期下降 13.3%，原因是通貨緊縮定價導致價格和產品組合下降 24.3%，而銷售量則成長 11%。整體而言，鋼框架銷量下降了 14%，價格和產品組合下降了 24.2%，但銷量成長 18.2% 部分抵消了這一影響。

While prices for steel framing products were down 21.9% year over year and 4% on a sequential basis, multiple framing manufacturers have issued notices of upcoming price increases. As a result, we expect for the year-over-year declines in pricing to continue to moderate as we finish out fiscal 2024, with some sequential improvement expected for our fourth quarter.

儘管鋼框架產品價格年減21.9%，季減4%，但多家框架製造商已發布漲價通知。因此，我們預計，隨著 2024 財年結束，定價年減幅度將繼續放緩，第四季預計將出現一些環比改善。

Complementary products sales of $378.6 million for the quarter grew 7.3% year over year in total and 1.8% on an organic basis, representing the 15th consecutive quarter of through-the-cycle growth for this category. Expansion of complementary products, particularly for tools and fasteners, EIFS and stucco, and insulation, continues to be a key element of our strategic priorities. We are sharing commercial and purchasing best practices across the organization to promote the advancement of these product lines, building on our desire to expand this margin-accretive category for both organic and inorganic means.

本季補充產品銷售額為 3.786 億美元，年增 7.3%，有機成長 1.8%，代表該類別連續第 15 季實現週期成長。補充產品的擴展，特別是工具和緊固件、EIFS 和灰泥以及絕緣材料，仍然是我們策略重點的關鍵要素。我們正在整個組織內分享商業和採購最佳實踐，以促進這些產品線的進步，基於我們擴大有機和無機手段的利潤增長類別的願望。

Now turning to slide 7, which highlights our profitability for the quarter. Gross profit of $414.7 million increased 3.1% compared to the prior year quarter, reflecting improved volumes and the associated attainment of calendar year-end volume incentive targets, partially offset by deflationary dynamics in steel pricing. Gross margin of 33% was up 40 basis points as compared to 32.6% a year ago. Despite the steel deflation, incrementally benefited mostly from a realization of the purchasing incentives.

現在轉向幻燈片 7，它突出顯示了我們本季度的盈利能力。毛利為 4.147 億美元，較上年同期成長 3.1%，反映出產量的增加以及相應的年終產量激勵目標的實現，但部分被鋼鐵價格的通貨緊縮動態所抵消。毛利率為 33%，比一年前的 32.6% 上升了 40 個基點。儘管鋼鐵通貨緊縮，但增量主要受益於採購激勵措施的實現。

Selling, general, and administrative expenses were $295.7 million for the quarter, an increase of $28.3 million over the prior year quarter, nearly $10 million of that increase related to recent acquisitions and newly opened greenfield locations. The remaining organic increase was primarily driven by labor and other expenses, particularly those elevated by the higher cost to serve mix and high volume of commercial and multi-family end market demand.

本季的銷售、一般和管理費用為 2.957 億美元，比去年同期增加 2,830 萬美元，其中近 1,000 萬美元的成長與最近的收購和新開設的綠地地點有關。剩餘的有機成長主要是由勞動力和其他費用推動的，特別是因服務混合和大量商業和多戶終端市場需求的成本較高而增加的費用。

SG&A as a percentage of net sales was 23.5%, an increase of 180 basis points from the third quarter of fiscal 2023. Along with the items I just noted for SG&A expenses, reduced revenue from steel price deflation negatively impacted SG&A leverage by 100 basis points. And the weather-related revenue delays and associated operational inefficiencies had an estimated 30 basis points of additional unfavorable impact.

SG&A 佔淨銷售額的百分比為 23.5%，較 2023 財年第三季增加 180 個基點。除了我剛才提到的 SG&A 支出項目之外，鋼鐵價格通貨緊縮帶來的收入減少也對 SG&A 槓桿產生了 100 個基點的負面影響。與天氣相關的收入延遲和相關的營運效率低下估計造成了 30 個基點的額外不利影響。

Adjusted SG&A expense as a percentage of net sales of 22.9% increased 150 basis points from 21.4% in the prior year quarter. Following, and with 10.9% higher interest expense, net income decreased 19.9% to $51.9 million for the quarter or $1.28 per diluted share compared to net income of $64.8 million or $1.53 per diluted share a year ago.

調整後的 SG&A 費用佔淨銷售額的 22.9%，比去年同期的 21.4% 增加了 150 個基點。此後，由於利息支出增加了10.9%，本季淨利潤下降了19.9%，至5,190 萬美元，即稀釋後每股收益1.28 美元，而去年同期淨利潤為6,480 萬美元，即稀釋後每股收益1.53美元。

Adjusted EBITDA of $128 million decreased 9.1% or $12.8 million as compared with a year ago, and adjusted EBITDA margin decreased to 10.2% compared to last year's third quarter level of 11.4%.

調整後 EBITDA 為 1.28 億美元，比去年同期下降 9.1%，或 1,280 萬美元；調整後 EBITDA 利潤率比去年第三季的 11.4% 下降至 10.2%。

Now shifting to our balance sheet, which is highlighted on slide 8. At January 31, we had cash on hand of $88.3 million and $866.3 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, improved from 1.6 times a year ago.

現在轉向我們的資產負債表，這在幻燈片 8 中突出顯示。截至 1 月 31 日，我們手頭現金為 8,830 萬美元，循環信貸安排下的可用流動資金為 8.663 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，較去年同期的 1.6 倍有所改善。

Given the approaching Kamco transaction closure, we expect to end the fourth quarter with net debt leverage of approximately 1.8 times before motoring back towards our current level over the next 12 months or so.

鑑於 Kamco 交易即將結束，我們預計第四季末淨債務槓桿約為 1.8 倍，然後在未來 12 個月左右恢復到目前的水平。

Just after the end of our third quarter, we opportunistically repriced our term loan B at SOFR plus [225], successfully achieving a 75-basis-point improvement, which represents a $3.7 million annualized interest expense savings as compared to the prior terms, or a $2.6 million annual benefit to net income. Our loan agreement will expire in May 2030, consistent with its prior term.

就在第三季末後，我們趁機將定期貸款B 重新定價為SOFR plus [225]，成功實現了75 個基點的改進，這意味著與之前的條款相比，年化利息費用節省了370 萬美元，或每年淨收入收益為 260 萬美元。我們的貸款協議將於 2030 年 5 月到期，與先前的條款一致。

For the quarter, cash provided by operating activities was $104.3 million compared to $134.1 million a year ago. Free cash flow was $94.1 million compared to $122.5 million for the same period last year. For the full year, we expect free cash flow generation of approximately 55% to 60% of adjusted EBITDA.

本季經營活動提供的現金為 1.043 億美元，去年同期為 1.341 億美元。自由現金流為 9,410 萬美元，去年同期為 1.225 億美元。我們預計全年自由現金流量約為調整後 EBITDA 的 55% 至 60%。

Capital expenditures of $10.2 million for the quarter compared to $11.6 million a year ago. We continue to expect that for the full year fiscal 2024, capital expenditures will be approximately $56 million to $58 million.

本季資本支出為 1,020 萬美元，而去年同期為 1,160 萬美元。我們仍預期 2024 財年全年的資本支出約為 5,600 萬至 5,800 萬美元。

We repurchased another 370,000 shares of stock during the quarter for $24.8 million and had $216.5 million of share purchase authorization remaining at January 31.

我們在本季以 2,480 萬美元回購了另外 37 萬股股票，截至 1 月 31 日，我們還剩 2.165 億美元的股票購買授權。

We have a solid balance sheet, with no near-term maturities and an attractive capital structure, providing an effective foundation for the execution of our strategic priorities. Of note, on the strength of our business and the health of our balance sheet, GMS was upgraded earlier this month by Moody's Investors Service to BA1, putting us now only one notch below investment grade.

我們擁有穩健的資產負債表、無短期到期日以及有吸引力的資本結構，為執行我們的策略重點提供了有效的基礎。值得注意的是，鑑於我們的業務實力和資產負債表的健康狀況，穆迪投資者服務公司本月稍早將 GMS 升級至 BA1，使我們現在僅比投資等級低一級。

Looking forward, we expect to maintain our balanced approach to capital allocation as we intend to continue to invest in the business, seek additional M&A opportunities, and opportunistically leverage favorable market conditions to repurchase shares.

展望未來，我們預計將保持平衡的資本配置方式，因為我們打算繼續投資該業務，尋求更多併購機會，並伺機利用有利的市場條件回購股票。

I want to thank our team for their remarkable efforts to flex our operations as demand has shifted over time and for their commitment to drive improved profitability, all while maintaining exceptional levels of service.

我要感謝我們的團隊在需求隨著時間的推移而變化的情況下為靈活運營所做的巨大努力，並感謝他們致力於提高盈利能力，同時保持卓越的服務水平。

Before turning the call over to JT to provide a review of our outlook and fourth quarter projections, let me highlight two housekeeping items. First, please note that there are 64 selling days during the fourth quarter of fiscal 2024 as compared with 63 in the prior year period. And second, the projections that JT will provide exclude any potential benefits from the Kamco transaction.

在將電話轉給 JT 回顧我們的前景和第四季度預測之前，讓我強調兩個內務項目。首先，請注意，2024 財年第四季有 64 個銷售日，而去年同期為 63 個。其次，JT 將提供的預測排除了 Kamco 交易帶來的任何潛在利益。

However, once the transaction closes, likely in the next few days, we would expect Kamco to add approximately $20 million in net sales, with approximately $2 million to $2.5 million of adjusted EBITDA for each full month as part of GMS during our fiscal fourth quarter.

然而，一旦交易完成（可能在接下來的幾天內），我們預計Kamco 將增加約2000 萬美元的淨銷售額，作為第四財季GMS 的一部分，每個整月調整後的EBITDA 約為200萬至250 萬美元。

With that, I'll now turn the call over to JT. He will start on slide 9.

現在，我將把電話轉給 JT。他將從幻燈片 9 開始。

Thank you, Scott.

謝謝你，斯科特。

Looking forward, we are encouraged by what we believe lies ahead for GMS. On our call in December, we spoke about the likelihood of a potential air pocket in commercial activity starting sometime during calendar 2024. While still likely eventuality at some point, it appears to be further down the road than we would have expected and likely less pronounced in both duration and severity.

展望未來，我們對 GMS 的前景感到鼓舞。在 12 月的電話會議上，我們談到了 2024 年某個時間點開始商業活動可能出現潛在氣泡的可能性。雖然在某些時候仍有可能發生，但它似乎比我們預期的要更進一步，而且在持續時間和嚴重性方面可能不太明顯。

The strength in the US economy, the myriad large-scale infrastructure stimulus programs, and the expectation of reduced interest rates and loosening lending conditions in the back half of 2024, provide more optimism than previously anticipated, assuming that the still present risk of a broad contagion of commercial loan defaults is avoided. And in the very near term, our backlog would indicate similar levels of commercial activity in Q4 as in our previous quarter.

美國經濟的強勁、大規模的基礎設施刺激計劃以及 2024 年下半年降息和放鬆貸款條件的預期，比之前的預期更加樂觀，假設廣泛的風險仍然存在。避免商業貸款違約的蔓延。在不久的將來，我們的積壓訂單將顯示第四季的商業活動水準與上一季相似。

Our commercial volumes remain solid, with particularly high demand for steel products. Also, February has proven to be a strong month, not only for commercial, but across our other end markets, albeit in part due to the work that was weather delayed at the end of our third quarter.

我們的商業量保持穩定，對鋼鐵產品的需求特別高。此外，事實證明，二月是一個強勁的月份，不僅對商業而言，而且對我們的其他終端市場而言也是如此，儘管部分原因是我們第三季末的工作因天氣原因而延遲。

Single-family demand is improving, and we expected to show year-over-year improvement for the full calendar year of 2024. For multifamily, despite a reduction in starts, its current backlog continues to drive construction activity, and we expect it to do so for at least the next couple of quarters. Given this backdrop and starting with wallboard volumes, we anticipate commercial to be up mid to high single digits for our fiscal fourth quarter on a per day basis.

單戶住宅的需求正在改善，我們預計 2024 年全年將出現年比改善。對於多戶住宅來說，儘管開工量有所減少，但目前的積壓訂單繼續推動建築活動，我們預計至少在接下來的幾個季度將如此。考慮到這一背景，從牆板銷售開始，我們預計第四財季的每日商業銷售將成長中高個位數。

Multi-family wallboard volumes are expected to grow low single digits as compared with the prior year period as we are progressively facing much tougher year ago comparison. And single-family wallboard volumes are expected to be up low single digits, which, if realized, will represent the first positive year-over-year comparison for single-family wallboard volume in 1.5 years.

與去年同期相比，多戶牆板銷售量預計將成長較低的個位數，因為我們逐漸面臨與去年同期相比更嚴峻的情況。單戶牆板銷量預計將成長低個位數，如果實現的話，這將是 1.5 年來單戶牆板銷量首次出現同比增長。

In total, wallboard volumes are expected to be up low single digits per day as compared with the fourth quarter of last year. Pricing for wallboard is expected to remain resilient, with price increase negotiations currently underway. As such, for our fiscal fourth quarter, we expect wallboard prices to be up slightly in the low single digits, both sequentially and as compared to a year ago.

總體而言，與去年第四季相比，牆板銷量預計每天將成長低個位數。牆板的定價預計將保持彈性，目前正在進行提價談判。因此，在我們的第四財季，我們預期牆板價格無論是環比或與去年同期相比都將小幅上漲，幅度為低個位數。

In ceilings, given our expectation of continued solid demand in our commercial end market, we expect low to mid-single digit per day increases year over year for volume and a mid-single digit increase for price and mix. For steel framing, as I stated earlier, demand is expected to remain solid, with per day volumes up in the mid-teens for the fourth quarter. While our prices appear to have stabilized in steel framing for now, they still lag last year's level with a year-over-year decline in the low teens expected on a per day basis.

在天花板方面，考慮到我們對商業終端市場需求持續強勁的預期，我們預計每天的銷售量將出現低至中個位數的成長，而價格和產品組合將出現中個位數的成長。對於鋼框架，正如我之前所說，需求預計將保持穩定，第四季度的日產量將增長到十幾歲左右。雖然我們的鋼框架價格目前似乎已經穩定，但仍低於去年的水平，預計每天將比去年同期下降十多歲。

Finally, net sales for our complementary products are expected to grow high single digits on a per day basis as compared with the fourth quarter a year ago. All in, as shown on slide 10, including the additional sales dollars that were pushed into Q4 due to weather delays, and factoring in an expectation for approximately $25 million of year-over-year deflation in steel pricing, we anticipate net sales per day to increase mid-single digits as compared with a year ago.

最後，與去年第四季相比，我們的互補產品的淨銷售額預計每天將實現高個位數成長。總而言之，如幻燈片 10 所示，包括由於天氣延誤而推入第四季度的額外銷售美元，並考慮到鋼鐵價格同比通貨緊縮約 2500 萬美元的預期，我們預計每天的淨銷售額與一年前相比增加中個位數。

We also expect that the steel price deflation will negatively impact SG&A as a percentage of sales by an estimated 40 basis points. For gross margin, without the benefits we saw in Q3 when we achieved new volume tiers associated with year-end incentives and as single-family begins to increase as a component of our mix, we expect our gross margin to be approximately 32.2% for the fourth quarter.

我們也預計，鋼材價格通貨緊縮將對 SG&A 佔銷售額的百分比產生約 40 個基點的負面影響。就毛利率而言，如果沒有我們在第三季度看到的好處，當時我們實現了與年終激勵相關的新銷量等級，並且隨著單戶住宅開始增加作為我們組合的組成部分，我們預計我們的毛利率約為32.2%第四季。

Altogether, adjusted EBITDA is expected to be in the range of $145 million to $150 million for the fourth quarter. Looking ahead to fiscal 2025, we believe that we will again see the dynamics of our end market shift with strength building for single family, while construction will likely reach completion by calendar Q3 on a substantial portion of what remains of the multifamily backlog.

總而言之，第四季調整後的 EBITDA 預計將在 1.45 億美元至 1.5 億美元之間。展望 2025 財年，我們相信，我們將再次看到終端市場轉變的動態，單戶住宅的實力不斷增強，而多戶住宅積壓的大部分剩餘建築可能會在第三季度完成。

We are currently expecting commercial to continue with activity levels that are similar to what we just reported for at least the next couple of quarters. Given that, with a balanced mix of end markets, our team is ready for these expected shifts and has demonstrated our ability to flex as needed to best serve our customers.

我們目前預計至少在接下來的幾個季度商業活動水平將繼續與我們剛剛報告的水平相似。鑑於終端市場的平衡組合，我們的團隊已為這些預期的轉變做好了準備，並展示了我們根據需要靈活調整以最好地服務客戶的能力。

Thank you for joining us today. Operator, we are ready to open the line for questions.

感謝您今天加入我們。接線員，我們已準備好開通提問線路。

(Operator Instructions) David Manthey, Baird.

（操作員說明）David Manthey，Baird。

Thank you. Good morning, everyone. JT, I think you just said that wallboard, you expected it in the fourth quarter to be up low single digits year over year and quarter over quarter. I want to check if I have that right. And also I have $481 per 1,000 feet in the last fourth quarter. I just wanted to check those facts. Is that correct?

謝謝。大家，早安。JT，我想您剛才提到了牆板，您預計第四季度的同比和環比增長率將是低個位數。我想檢查一下我是否有這個權利。最後第四季我的收入為每 1,000 英尺 481 美元。我只是想核實一下這些事實。那是對的嗎？

Are you talking volume and price or just price?

你說的是數量和價格還是只是價格？

There, I'm just talking price.

在那裡，我只是談論價格。

Yes. So sequentially, we expect it to improve. And year over year, we expect it to be up slightly. I'm looking to see if that quarter number was right.

是的。因此，我們預計它會得到改善。年復一年，我們預計它會略有上升。我想看看這個季度的數字是否正確。

$481. And just so we ended the third quarter at a roughly $480, and February is tracking higher at closer to $490.

481 美元。就這樣，我們第三季結束時的價格約為 480 美元，二月的價格正在上漲，接近 490 美元。

Okay. Yes, that was the question, is the customer reaction to those February increases must be fairly good, given that you're already seeing an effect here just 4 weeks in, right?

好的。是的，這就是問題所在，鑑於您在短短 4 週內就已經看到了效果，客戶對 2 月份漲價的反應一定相當好，對嗎？

Yeah. I mean customer reactions are never good to price increases. But the reality is there are parts of the market where we are able to get slightly better prices at the moment.

是的。我的意思是，客戶對價格上漲的反應從來都不好。但現實情況是，我們目前在市場的某些部分可以獲得稍微更好的價格。

Got it. Okay. And then second question, although it's negative for revenues and operating margins, does lower steel pricing have a positive mix effect on your gross margin? And can you just remind us in stack rank terms, where steel ranks relative to your other segment -- your product segments?

知道了。好的。第二個問題，儘管鋼鐵定價下降對收入和營業利潤率產生負面影響，但它是否會對您的毛利率產生正面的綜合影響？您能否以堆疊排名的形式提醒我們，鋼鐵相對於您的其他細分市場（您的產品細分市場）的排名如何？

It's third, but it's -- gross margins are pretty good. So complementary products, wallboard, steel, very close to wallboard actually at this point in gross margin percent. And then ceilings is the lowest of the gross margin percentages.

它排名第三，但毛利率相當不錯。因此，互補產品牆板、鋼，此時的毛利率其實非常接近牆板。然後上限是最低的毛利率百分比。

Okay. So with steel being down in the mix, that actually might be slightly gross margin accretive when you think about the effect of that?

好的。因此，隨著鋼鐵在混合中的地位下降，當您考慮其影響時，實際上可能會略微增加毛利率？

I mean, slightly. I mean -- it depends on the growth in the other categories. But yes, with all that volume growth, though, the sales dollars will still be pretty significant. So it's 10 basis points maybe, the max right kind of deal, not a lot.

我的意思是，稍微。我的意思是——這取決於其他類別的成長。但是，是的，隨著銷量的成長，銷售額仍然相當可觀。因此，可能是 10 個基點，這是最合適的交易，但不會太多。

Noah Merkousko, Stephen Inc.

諾亞·默庫斯科，史蒂芬公司

Good morning, thanks for taking my questions. So first, I wanted to touch on the wallboard price again, really encouraging to see some improvement here finally seems to be corresponding with single family. But I guess, as we think longer term throughout calendar year '24, I think we should continue to see strong single-family volumes. Is that kind of low single-digit growth, a good kind of ballpark to think about just in terms of holding on to that price that you got here in the fiscal 4Q as we look to maybe the next three quarters?

早上好，感謝您回答我的問題。首先，我想再談談牆板的價格，看到這裡的一些改進似乎最終與單身家庭相對應，這真的很令人鼓舞。但我想，從長遠來看，24 日曆年我們應該會繼續看到強勁的單戶住宅成交量。在我們展望未來三個季度的情況下，就維持第四財季的價格而言，這種低個位數的成長是否是一個值得考慮的好主意？

I would say, yes. And you're right, it's fully dependent on the strength in the single-family market.

我會說，是的。你是對的，這完全取決於單戶住宅市場的實力。

And just to follow up on that point, that even consider some maybe mix impact as you see -- a negative mix impact as you see more single family.

為了跟進這一點，甚至考慮一些可能的混合影響，正如你所看到的——當你看到更多的單身家庭時，負面的混合影響。

That's right.

這是正確的。

All right. Great. And then one last one for me. It sounds like your commentary around commercial has really improved. Just hoping to get a little bit more detail there on what specific kind of end markets within commercial, you're seeing that strength. The leading indicator is still kind of point a not-so-rosy picture as we look forward. So maybe kind of help us understand what's driving your slightly differentiated view here.

好的。偉大的。然後是最後一張給我的。聽起來你對廣告的評論確實有所改善。只是希望獲得更多有關商業終端市場類型的更多詳細信息，您會看到這種優勢。正如我們所期望的那樣，領先指標仍然顯示出一個不太樂觀的景象。因此，也許可以幫助我們理解是什麼推動了您的略有不同的觀點。

I think that if you look at just purely the ABI and you look at the impact of multi-family on the ABI, it's a huge drag. So what you're seeing is you're seeing a much bigger headline decline, and we've already kind of accounted for that expected multifamily decline, multifamily in our business, 15% to 17%. So we've kind of accounted for that and expect that in the back half. So it's not a huge drag for us as that headline ABI would indicate.

我認為，如果你只關注 ABI 以及多戶家庭對 ABI 的影響，你會發現這是一個巨大的拖累。所以你看到的是，整體下降幅度要大得多，我們已經考慮到了預期的多戶型下降，我們業務中的多戶型下降了 15% 到 17%。所以我們已經考慮到了這一點，並預計在後半段會出現這種情況。因此，正如 ABI 標題所示，這對我們來說並不是一個巨大的阻力。

Underneath that, you're seeing a lot of strength in those categories I talked about earlier. You're seeing a lot of mega project activity, chip plans and car plants and all of the supporting infrastructure around all of that out there. You're seeing strength in medical, you're seeing strength in data centers, no slowing down in data centers, right, particularly with this AI revolution going on.

在此之下，您將看到我之前談到的那些類別的強大優勢。你會看到很多大型專案活動、晶片計劃和汽車工廠以及所有圍繞這些的支援基礎設施。你看到了醫療領域的優勢，你看到了資料中心的優勢，資料中心沒有放緩，對吧，特別是在這場人工智慧革命正在進行的情況下。

So a lot of the categories that have been driving the strength today continue to drive the strength tomorrow. And I think the mega projects probably offset a lot of the smaller commercial that's having a really hard time being funded.

因此，今天推動力量的許多類別將繼續推動明天的力量。我認為大型專案可能會抵消許多融資困難的小型商業專案。

All that being said, the expectation is that you guys are probably watching the PCE this morning because I don't have my phone with me at the moment, but that's probably out already. So I do think that the interest rate environment with most of the expectations being a June start for the Fed funds rates come back down again, I think that would create this loosening of this tight funding situation that small commercial and medium commercial is facing.

話雖如此，預計你們今天早上可能會觀看 PCE，因為我現在沒有帶手機，但這可能已經發布了。因此，我確實認為，大多數人預期聯邦基金利率將在 6 月開始再次下降，這將導緻小型商業和中型商業面臨的融資緊張狀況有所放鬆。

And that's important to happen, and I do think it's going to happen. But I think that's part of the positivity that I'm conveying is that large commercial already funded, already in the pipeline is going to continue. And hopefully, what we see is we see those interest rates moderate into the back half of this year and really more importantly, the lending environment improved for commercial activity.

這很重要，而且我確實認為這將會發生。但我認為我所傳達的積極性的一部分是，已經獲得資金、已經在籌備中的大型商業活動將繼續下去。希望我們看到的是，利率在今年下半年有所放緩，更重要的是，商業活動的貸款環境有所改善。

Those things all come together, and I believe we'll be fine. I think that, like we said, it's probably going to decline. It'll be an air pocket, but it will be later in the year, and it will probably be not as severe as I would have possibly thought at the end of last quarter.

這些事情都聚集在一起，我相信我們會沒事的。我認為，正如我們所說，它可能會下降。這將是一個氣泡，但會在今年晚些時候，而且可能不會像我在上個季度末想像的那麼嚴重。

Kurt Yinger, D.A. Davidson.

庫爾特·英格，D.A.戴維森。

Great. Thank you, and good morning, everyone. If we look at, I guess, the 80 basis point decline in gross margin that's expected in Q4, is that primarily the purchase incentives falling off maybe a little bit of single-family mix dynamic there with wallboard, or are there any other kind of big factors within that expectation?

偉大的。謝謝大家，大家早安。如果我們看一下，我猜，第四季度預計毛利率將下降 80 個基點，主要是購買激勵下降，可能是單戶住宅與牆板的混合動態，或者是否有任何其他類型的該預期中的重要因素是什麼？

No. It's basically the expectation. We had a pleasant surprise last year in the achievement of some of these goals that happened in the fourth quarter. We probably don't expect to see that again. So that's really one of the biggest reversals from quarter to quarter and year over year.

不。基本上就是預期了。去年，我們在第四季度實現了其中一些目標，這讓我們感到驚訝。我們可能不會再看到這種情況了。因此，這確實是季度與季度、年同比最大的逆轉之一。

Okay. Makes sense. And then Kamco is a bit of a bigger deal. You talked about net leverage going up to just under 1.8 times. I guess as you think about deleveraging from that, does that impact the appetite for M&A over the next couple of quarters as you integrate and work down that net leverage a bit, or do you still feel pretty comfortable with where that stands? And if the right opportunity comes up, there wouldn't be very much hesitancy?

好的。說得通。Kamco 的規模更大一些。您談到淨槓桿率將升至略低於 1.8 倍。我想，當您考慮去槓桿化時，隨著您整合並稍微降低淨槓桿率，這是否會影響未來幾個季度的併購興趣，或者您仍然對目前的情況感到相當滿意？如果有合適的機會，不會有太多的猶豫吧？

Yes. First to clarify, I wouldn't say it's just under 1.8. I think 1.8 is probably the better number. I don't want to oversell sort of what we'll be able to do there. But it doesn't lower our appetite at all.

是的。首先澄清一下，我不會說它低於 1.8。我認為 1.8 可能是更好的數字。我不想過度推銷我們在那裡能夠做的事情。但這根本不會降低我們的食慾。

As we said, we'll be able to get over the years' time based on combined cash flows of the business back to our current levels and on all of these strategic initiatives and deployment things that we're doing, it's still pedaled down.

正如我們所說，我們將能夠在未來幾年的時間裡，根據業務的綜合現金流回到我們目前的水平，並且根據我們正在做的所有這些戰略舉措和部署工作，它仍然在下降。

So we are really comfortable with our debt leverage. As we noted, we just got an upgrade from Moody's just based on the strength of our balance sheet. So we're content with where it's positioned and I think it gives us a lot of platform to continue to do what we're doing strategically.

因此，我們對債務槓桿非常滿意。正如我們所指出的，穆迪剛剛根據我們的資產負債表實力對我們進行了升級。因此，我們對它的定位感到滿意，我認為它為我們提供了許多平台，可以繼續策略性地進行我們正在做的事情。

Keith Hughes, Truist Securities.

基斯‧休斯 (Keith Hughes)，Truist 證券公司。

Okay. Just a couple of questions, but one quick one. The guidance for fiscal fourth quarter, I assume that does not include Kamco. Is that correct?

好的。只有幾個問題，但一個問題很快。我認為第四財季的指導不包括 Kamco。那是對的嗎？

Yeah, that's correct.

是的，這是正確的。

And when do you have any kind of update when you expect it to close?

當你預計它會關閉時，你什麼時候會有任何更新？

Within the coming days.

未來幾天內。

Okay. Short term. Okay. And then your commentary on the -- well, let me back up, the commentary in single. I know there's some mix stuff going on here that's compressing the AUV. Is that something that's going to run long term? It's happened in past quarters. Is there something specific going on there, or is this something that should change for you in the coming periods?

好的。短期。好的。然後你的評論——好吧，讓我支持一下，單行評論。我知道這裡正在進行一些混合操作來壓縮 AUV。這是要長期運作的事情嗎？過去幾個季度就發生過這種情況。那裡有什麼具體的事情發生嗎？或者這是否應該在未來一段時間內為你改變？

It's just end market related, right? I mean it just depends on the activity for that individual quarter. We end up with more education or more of the low end, then the mix is down. If we get more office or we get more medical, then the mix will increase. I think we're talking about having a more normalized mix this coming quarter when we gave the guidance there, which is pricing up and volume up. So we're not expecting to see continuation, let's say, of a decline in mix over the long haul. It's really just project dependent.

這只是與終端市場有關，對嗎？我的意思是，這僅取決於該季度的活動。我們最終接受了更多的教育或更多的低端教育，然後這種組合就下降了。如果我們獲得更多的辦公室或更多的醫療服務，那麼這種組合就會增加。我認為，當我們給出指導時，我們正在討論在下個季度實現更加標準化的組合，即價格上漲和銷售增加。因此，從長遠來看，我們預計不會看到混合程度持續下降。這實際上只是依賴項目。

Okay. And then just final question. The view -- the short-term view of commercial -- excuse me, of -- well, just a generally constructive view on commercial in general. Are you seeing enough office remodel activity that, that could be an actual growth sector for you in the next year or so? Is it big enough for this whole move to an office that's cheaper in price and all that stuff is going on. Is that big enough to offset whatever continued pressure we feel in new office construction?

好的。然後是最後一個問題。對不起，這種觀點──商業的短期觀點──嗯，只是對商業總體上的建設性觀點。您是否看到足夠多的辦公室改造活動，這可能會成為您在未來一年左右的實際成長領域？它是否足夠大，足以讓整個搬遷到一個價格更便宜的辦公室，並且所有這些事情都在進行。這個規模是否足以抵銷我們在新辦公大樓建設中感受到的持續壓力？

It's not realizing itself in activity yet, but it's certainly a lot of chatter out there. And I wouldn't say that we have in our forecast considered a huge rebound in '24 in office. I do think that in '25 or maybe even in the late '24, there will be some resolution in some of these larger markets with some of this empty space as well as some of the lending situations around some of those properties.

它還沒有在活動中實現，但肯定有很多討論。我不會說我們在預測中考慮了 24 年執政期間的巨大反彈。我確實認為，在 25 年，甚至可能在 24 年末，一些較大的市場將會有一些解決方案，其中一些空置的空間以及圍繞其中一些房產的一些貸款情況。

If those properties move and, or change hands, regardless of what the price is, those new owners will do something with those buildings. And when that happens, that's good for us. But we're not -- In my optimism, I'm not considering that in the 2024 calendar year, if that would be positive upside.

如果這些房產移動或轉手，無論價格是多少，這些新業主都會對這些建築物做一些事情。當這種情況發生時，這對我們有好處。但我們不會——我樂觀地認為，在 2024 年，我不會考慮這是否會帶來正面的上行空間。

Steven Ramsey, Thompson Research Group.

史蒂文·拉姆齊，湯普森研究小組。

Hi, good morning. Wanted to get a little more color on the Kamco deal. Good to hear that the margin profile is similar to yours. I'm curious if there is some margin enhancement opportunity there or if it's more volume growth or if it's shifting their mix to maybe look a little bit more like GMS with complementary products, just any way you want to elaborate on that?

早安.希望對 Kamco 交易有更多了解。很高興聽到利潤狀況與您的類似。我很好奇那裡是否有一些利潤提高的機會，或者是否有更多的銷量增長，或者是否正在改變他們的組合，使其看起來更像具有互補產品的 GMS，您想詳細說明一下嗎？

It's all of the above. So I would say that there's opportunity in all those areas. I think there's purchasing synergy here. a little bit of G&A, not a lot of G&A opportunity because of the unique geography here. We don't have much overlap at all. artifact, we don't have any overlap at all in our businesses today.

以上就是這些了。所以我想說所有這些領域都有機會。我認為這裡存在著購買協同效應。由於這裡獨特的地理位置，因此有一點 G＆A 機會，但沒有很多 G＆A 機會。我們根本沒有太多重疊。神器，我們今天的業務根本沒有任何重疊。

So from that respect, the G&A savings comes in things like insurance and smaller areas. But we also have the ability, we believe, to enhance the mix, but also drive some more volume in wallboard. We called that out specifically. We think we might be able to help on the wallboard side.

因此，從這方面來看，一般行政費用節省來自保險和較小區域等方面。但我們相信，我們也有能力增強組合，同時也能增加牆板的銷售量。我們特別指出了這一點。我們認為我們也許能夠在牆板方面提供幫助。

Just add too, Stephen. We've got the overhead of the Bronx location in those margins as well. So that's an exciting new opportunity to serve that borough of the city. And as those revenues grow, we'll get a lot of air cover for revenues over those overhead costs that will help out the overall profitability of the business as well.

也請添加，史蒂芬。我們在這些邊際中也得到了布朗克斯地點的開銷。因此，這是一個為該市行政區提供服務的令人興奮的新機會。隨著這些收入的成長，我們將獲得大量收入來抵消這些管理費用，這也將有助於提高業務的整體獲利能力。

Yes. I wouldn't call out anybody on the call listening from Kamco as well. Visits that we've had up there, that is an exceptional greenfield facility. Well, one that's that I ever seen being open in a very, very short period of time.

是的。我也不會在通話中叫出任何正在收聽 Kamco 的人。我們在那裡進行過參觀，那是一個特殊的新建設施。嗯，這是我見過的在非常非常短的時間內開放的。

Okay. Great. And then zooming out on slide 8, the three-year cash usage over 50% to acquisition, 18% to repurchases, 15% to CapEx. I'm curious just you foresee over the next three years that the capital usage could be something similar to that, or if you think that mix morph a bit over time.

好的。偉大的。然後縮小投影片 8，三年現金使用量超過 50% 用於收購，18% 用於回購，15% 用於資本支出。我很好奇，您預計未來三年的資本使用情況可能與此類似，或者您是否認為隨著時間的推移，這種混合會發生一些變化。

Well, I would guess it probably mean if it's going to change, it's going to lean more towards M&A than anything else. And we've got a strong backlog. We've got a good M&A engine. It's a core competency for us. And I think with rates moderating and coming down, I'd expect to see the M&A market also accelerate a little bit. So probably more towards M&A.

嗯，我猜這可能意味著如果要改變的話，它會比其他任何事情都更傾向於併購。我們有大量的積壓訂單。我們有一個良好的併購引擎。這是我們的核心能力。我認為，隨著利率的放緩和下降，我預計併購市場也會略有加速。所以可能比較傾向併購。

It wouldn't be a significant shift. Maybe 5 to 10 points of percentage. But directionally, that's spot on.

這不會是一個重大轉變。或許有 5 到 10 個百分點。但從方向上來說，這是正確的。

Mike Dahl, RBC Capital Markets.

麥克·達爾，加拿大皇家銀行資本市場部。

Hey. Thanks for taking my questions. I also wanted to ask about Kamco, and my line just cut out for a minute. So apologies if they have just asked this. But just in terms of their current mix of business, can you help us understand what the current mix is from a product category and an end market standpoint?

嘿。感謝您回答我的問題。我還想詢問 Kamco 的情況，但我的線路突然中斷了一分鐘。如果他們剛剛問這個問題，我深表歉意。但就他們目前的業務組合而言，您能否幫助我們從產品類別和終端市場的角度了解目前的業務組合是什麼？

And then on the recent trends. The '23 revenues are slightly down versus the prior kind of trailing 12-month numbers you had provided. And so a little more color on the organic trends currently and what you would expect organically for them in the upcoming quarters?

然後是最近的趨勢。與您提供的之前 12 個月的數據相比，23 年的收入略有下降。那麼，對當前的有機趨勢有更多的了解，以及您對未來幾季有機趨勢的期望嗎？

They are more weighted towards -- again, we haven't closed. So I don't have all the details sitting right in front of me. But they are more heavily weighted towards ceilings. They are an excellent ceilings distributor. Probably the best from an independent perspective out there in an exceptionally strong market for ceilings.

他們更傾向於——再說一遍，我們還沒有關閉。所以我面前並沒有所有的細節。但它們更傾向於天花板。他們是優秀的天花板經銷商。從獨立的角度來看，在異常強勁的天花板市場中，這可能是最好的。

So they're a little more weighted towards ceilings. The balance there -- and a little underweighted in complementary versus us and underweighted in wallboard versus us. And while we'll close in the next couple of days and get a lot more information on their sales, it would be a guess to tell you, but I believe it's the same steel conditions that we're facing, primarily.

所以他們更傾向於天花板。那裡的平衡——與我們相比，互補品的權重稍低，與我們相比，牆板的權重略低。雖然我們將在接下來的幾天內關閉並獲得更多有關其銷售的信息，但告訴您這只是猜測，但我相信這主要與我們面臨的鋼鐵狀況相同。

Okay. That makes sense. And then looking at the numbers. So again, this is kind of back of the envelope, but it seems like you're suggesting their legacy EBITDA might have been around kind of [mid $20 million]. And if I look at your post-synergy multiple, it suggests you expect to get that up to around $40 million.

好的。這就說得通了。然後看數字。再說一次，這只是信封的背面，但你似乎在暗示他們的遺產 EBITDA 可能大約是[中2000萬美元]。如果我看看你的協同後倍數，它表明你預計將達到 4000 萬美元左右。

That's not insignificant in terms of the magnitude of synergies when you don't have current geographic overlap. So I know you articulated where they're coming from at a high level. Can you give us a little more color on the relative contribution of cost synergies? Sales synergies? And then if the greenfield location is included in that number? And should we expect the greenfield to be about as it ramps to be about the same size as their legacy branches?

當目前沒有地理重疊時，就協同效應的大小而言，這並不是微不足道的。所以我知道你在高層闡明了他們的來源。您能給我們更多關於成本協同效應的相對貢獻的資訊嗎？銷售綜效？那麼綠地位置是否包含在該數字中呢？我們是否應該期望綠地的規模與他們的遺留分支機構的規模大致相同？

Yes is the answer to the last question. It's a very large facility. Actually, it's an outstanding facility of beautiful building, well stocked, great operational capability. And yes, we've given them credit to that and the growth expectation there is included in our synergy number.

是的，這是最後一個問題的答案。這是一個非常大的設施。事實上，它是一個建築精美、庫存充足、運作能力強的傑出設施。是的，我們已經對此給予了他們信任，並且那裡的成長預期也包含在我們的協同效應數字中。

A lot of effort, you can imagine trying to get a facility up and running in the Bronx, the years of effort that it takes through permitting and investments, et cetera. So we feel really fortunate about that opportunity. So wallboard opportunity is another significant synergy, both on the selling side, but also on the cost side there as well as several other product cost opportunities.

您可以想像一下，在布朗克斯建立並運行一個設施需要付出很多努力，通過許可和投資等需要花費多年的努力。所以我們對這個機會感到非常幸運。因此，牆板機會是另一個重要的協同效應，不僅在銷售方面，而且在成本方面以及其他幾個產品成本機會方面。

So if you were to look at purchasing synergy, the Bronx, that's the large majority of the synergy that we've got in there as well as a little bit of overall growth in the market. And the least contributive is the G&A piece, which, again, as things more like benefits and scale advantages we have in leases and interest expenses and things like that.

因此，如果你要看看布朗克斯的採購協同效應，那就是我們在那裡獲得的大部分協同效應以及市場的一點整體成長。貢獻最少的是一般行政費用部分，這更像是我們在租賃和利息支出等方面的效益和規模優勢。

Keep in mind, too, that because it's an asset transaction, we also get a significant tax amortization benefit from us, which is essentially locked in for the next 15 years. And so think about that as more -- almost a reduction in price versus an EBITDA enhancement.

還要記住，因為這是一項資產交易，我們還獲得了可觀的稅收攤銷收益，基本上在未來 15 年內鎖定。因此，可以將其視為更多——幾乎是價格的下降與 EBITDA 的提高。

Okay. That all makes sense. And if I could just sneak one last one in. In terms of timing, obviously, to your best point, the tax savings is an ongoing one, but timing of realization for the other synergies, how should we think about that ramp?

好的。這一切都是有道理的。如果我能偷偷溜進去最後一顆就好了。就時間安排而言，顯然，就您而言，稅收節省是一個持續的過程，但實現其他協同效應的時間安排，我們應該如何考慮這種增長？

Well, I mean, purchasing synergies are fairly quick. They'll happen in the very near term over the course of the next quarter plus, we'll be doing that. Growth in the Bronx is growth in the Bronx. It's a startup operation. So that's kind of the tail end of the 24 to 36 months we talked about.

嗯，我的意思是，採購綜效相當快。它們將在下個季度的短期內發生，而且我們將這樣做。布朗克斯的成長就是布朗克斯的成長。這是一個啟動操作。這就是我們談到的 24 至 36 個月的尾聲。

So you have the tax benefit on a kind of immediate basis. You've got purchasing synergies more on an immediate basis, small G&A savings on an immediate basis and then the ramp-up in the Bronx is the one that's going to take the longer period of time.

因此，您可以立即享受稅收優惠。您可以立即獲得更多的採購協同效應，立即節省少量一般行政費用，然後布朗克斯的提升將需要更長的時間。

The cross-selling ramp-up of wallboard and complementary will take a little bit of time to get that foothold in place as well.

牆板和補充品的交叉銷售也需要一點時間才能站穩腳跟。

Zack Pacheco, Loop Capital.

扎克·帕切科，Loop Capital。

Thanks for taking my questions this morning. I was wondering, what are your current expectations on how long the multifamily backlog in the last before any slowdown in multifamily begins to show up in wallboard demand?

感謝您今天早上回答我的問題。我想知道，在多戶型住宅的需求開始放緩之前，您目前對過去多戶型住宅積壓多長時間的預期是什麼？

Like calendar third quarter, I'd expect to see things start to soften.

就像日曆第三季一樣，我預計情況會開始軟化。

Okay. Understood. And then I know you said closing in a couple of days here. But just wanted to ask on the M&A pipeline, if you provide any more color on maybe improvement in seller expectations or kind of just your guys' sentiment moving forward? Thanks.

好的。明白了。然後我知道你說幾天後就關門了。但只是想問一下關於併購管道，您是否提供了更多關於賣方期望改善的信息，或者只是你們的員工的情緒前進？謝謝。

I mean sellers' expectations varies, depending on the market and the strategic nature of it to us, et cetera. But our pipeline is solid with our normal kind of range of multiples. This one is unique because of that Bronx location. Really strong in Canada, where we're spending a lot of time and energy up there, really building our leadership position, but also very strong here in the US as well. So no shortage of opportunity when it comes to that.

我的意思是，賣家的期望各不相同，取決於市場及其對我們的策略性質等。但我們的管道在我們正常的倍數範圍內是穩定的。由於布朗克斯的位置，這一點是獨一無二的。在加拿大非常強大，我們在那裡花費了大量的時間和精力，真正建立了我們的領導地位，但在美國也非常強大。因此，在這方面並不缺乏機會。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。

Thanks, everybody.

謝謝大家。