Hillman Solutions Corp (HLMN) 2025 Q1 法說會逐字稿

Good morning and welcome to the first quarter 2025 results presentation for Hillman Solutions Corp. My name is Gigi and I'll be your conference call operator today. Before we begin, I would like to remind our listeners that today's presentation is being recorded and simultaneously webcast. The company's earnings release, presentation and 10-Q were issued this morning. These documents and a replay of today's presentation can be accessed on Hillman's Investor Relations website at ir.hillmangroup.com.

早上好，歡迎參加 Hillman Solutions Corp. 2025 年第一季業績報告會。我叫 Gigi，今天我將擔任您的電話會議接線生。在我們開始之前，我想提醒我們的聽眾，今天的演講正在錄製並同時進行網路直播。該公司的收益報告、簡報和 10-Q 已於今天上午發布。這些文件和今天示範的重播可以在 Hillman 的投資者關係網站 ir.hillmangroup.com 上查閱。

I would now like to turn the call over to Michael Koehler with Hillman.

現在我想將電話轉給希爾曼的邁克爾·科勒。

Thank you, Gigi. Good morning everyone and thank you for joining us. I'm Michael Koehler, Vice President of Investor Relations and Treasury. Joining me on today's call are Hillman's President and Chief Executive Officer, Jon Michael Adinolfi or JMA, as we call him; and Hillman's Chief Financial Officer, Rocky Kraft.

謝謝你，吉吉。大家早安，感謝大家的參與。我是麥可‧科勒 (Michael Koehler)，投資者關係與財務副總裁。參加今天電話會議的還有 Hillman 總裁兼執行長 Jon Michael Adinolfi（我們稱他為 JMA）以及 Hillman 財務長 Rocky Kraft。

Before we get into today's call, I would like to remind our audience that certain statements made today may be considered forward-looking and are subject to the safe harbor provisions of applicable securities laws. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, assumptions and other factors, many of which are beyond the company's control and may cause actual results to differ materially from those projected in such statements. Some of the factors that could influence our results are contained in our periodic and annual reports filed with the SEC.

在我們開始今天的電話會議之前，我想提醒我們的聽眾，今天發表的某些聲明可能被視為前瞻性的，並受適用證券法的安全港條款的約束。這些前瞻性陳述並非對未來績效的保證，並且受某些風險、不確定性、假設和其他因素的影響，其中許多因素超出了公司的控制範圍，並可能導致實際結果與此類陳述中的預測存在重大差異。我們向美國證券交易委員會提交的定期報告和年度報告中包含了一些可能影響我們績效的因素。

For more information regarding these risks and uncertainties, please see slide 2 in our earnings call slide presentation which is available on our website, ir.hillmangroup.com. In addition on today's call, we will refer to certain non-GAAP financial measures. Information regarding our use of and reconciliations of these measures to our GAAP results are available in our earnings call slide presentation.

有關這些風險和不確定性的更多信息，請參閱我們收益電話會議演示文稿的第二張幻燈片，該演示文稿可在我們的網站 ir.hillmangroup.com 上獲取。此外，在今天的電話會議上，我們將提及某些非公認會計準則 (Non-GAAP) 財務指標。有關我們對這些指標的使用以及與 GAAP 結果的調節信息，請參閱我們的收益電話會議幻燈片演示。

JMA will begin today's call by providing some commentary on tariffs and our guidance. He will then get into our first quarter highlights. Following his comments, Rocky will give a more detailed walk through our financials and guidance before turning the call back over to JMA for some closing comments. We will then open up the call for your questions.

JMA 將在今天的電話會議上就關稅和我們的指導提供一些評論。然後他將介紹我們第一季的亮點。評論結束後，Rocky 將更詳細地介紹我們的財務狀況和指導，然後將電話轉回給 JMA 進行一些結束語。然後我們將開始回答您的問題。

It's my pleasure to turn the call over to our President and CEO, Jon Michael Adinolfi. JMA?

我很高興將電話轉給我們的總裁兼執行長 Jon Michael Adinolfi。JMA？

Thanks, Michael. Good morning everyone and thank you for joining us. The first quarter of 2025 was a very good quarter for Hillman. We delivered both top and bottom line results that were in line with our expectations and we took great care of our customers. We continue to operate well and believe our business is well positioned.

謝謝，麥可。大家早安，感謝大家的參與。2025 年第一季對希爾曼來說是一個非常好的季度。我們實現了符合預期的營收和利潤結果，並且非常關心我們的客戶。我們繼續運作良好，並相信我們的業務處於有利地位。

Given the current environment, I wanted to touch on our top and bottom line guidance before going further. Based on our first quarter results and the progress we've made since the end of the quarter, we are reiterating our full year 2025 net sales and adjusted EBITDA guidance. Since the end of the quarter, several things have changed, tariffs, the geopolitical environment, expectations about economic growth and the health of the consumer to name a few. Our team has been monitoring and addressing the impacts of tariffs on our costs and how they will impact our overall business.

鑑於當前的環境，在進一步討論之前，我想先談談我們的頂線和底線指導。根據我們第一季的業績以及自本季末以來的進展，我們重申 2025 年全年淨銷售額和調整後的 EBITDA 指引。自本季末以來，一些事情發生了變化，例如關稅、地緣政治環境、經濟成長預期以及消費者健康狀況等。我們的團隊一直在監控和解決關稅對我們成本的影響以及它們將如何影響我們的整體業務。

Let me share some of the math that has gone into our top line assumptions. Today one-third of our products come from suppliers based in China, one-third come from suppliers based in North America and one-third comes from suppliers from the rest of the world.

讓我分享一下我們最重要的假設中的一些數學知識。如今，我們三分之一的產品來自中國供應商，三分之一來自北美供應商，三分之一來自世界其他地區的供應商。

Depending on the product type and the country it is sourced from, the amount of these new tariffs vary greatly. Altogether, based upon what we know today, we estimate the impact of all new 2025 tariffs will be approximately $250 million on an annualized basis. We believe, we can mitigate the additional tariff-related costs through price increases.

根據產品類型和原產國的不同，這些新關稅的金額差異很大。總而言之，根據我們目前掌握的信息，我們估計所有新的 2025 年關稅的影響將達到每年約 2.5 億美元。我們相信，我們可以透過提高價格來減輕與關稅相關的額外成本。

At the same time, we are working together with our customers and suppliers to optimize the country of origin where we source our products. Conversations with our customers have been ongoing and we are gaining clarity. We are executing our plan. We expect to cover higher costs on a dollar-for-dollar basis, like we did during the first Trump administration. The midpoint of our top line guidance assumes that the lift we get from price will be offset by volumes. This assumes market volumes are down approximately 17% during the second half.

同時，我們正在與客戶和供應商合作，優化我們產品的原產國。我們一直在與客戶進行對話，並且逐漸明確情況。我們正在執行我們的計劃。我們預計將以一比一的方式承擔更高的成本，就像我們在川普第一屆政府期間所做的那樣。我們的頂線指導的中點假設我們從價格中獲得的提升將被銷售所抵消。這假設下半年市場交易量下降約 17%。

For context, the worst year in the history of Hillman saw volumes down 10%. While the resilience of our Hillman business should prove our volumes will be better than our guide, we are holding our guidance to be prudent and conservative, as we are clearly in uncharted waters. Rocky will provide a deeper dive into these numbers and our guidance ranges in a bit.

作為背景，希爾曼歷史上最糟糕的一年，其銷量下降了 10%。雖然我們的 Hillman 業務的彈性應該證明我們的銷量將比我們的預期要好，但我們仍堅持謹慎和保守的預期，因為我們顯然處於未知領域。洛基 (Rocky) 稍後將對這些數字和我們的指導範圍進行更深入的探討。

Having been in business for over 60 years, Hillman has successfully managed through multiple market cycles and this business has proven resilient time and time again. We are confident that we can manage through this current set of challenges.

希爾曼已經經營 60 多年，成功度過了多個市場週期，並一次又一次地證明了其業務的韌性。我們有信心克服當前的一系列挑戰。

What differentiates Hillman is the strength of our competitive moat, the resilience of repair and maintenance demand and the healthy long-term partnerships we have with our top customers. Hillman products tend to be small ticket items that are critical parts of home improvement jobs done by both pros and DIYers. This makes our business less susceptible to the swings in the economy.

Hillman 的與眾不同之處在於我們強大的競爭優勢、維修和保養需求的彈性以及與頂級客戶建立的健康的長期合作關係。Hillman 產品往往是小型商品，是專業人士和 DIY 愛好者進行家居裝修工作的關鍵部分。這使得我們的業務不太容易受到經濟波動的影響。

Whether the pack of fasteners costs $0.50 or $2, it's relatively small versus the cost of most everyday items and it enables you to complete a project and in many times fix a problem. What I love about Hillman is that we bring so much more to the table than a typical vendor or distributor. We have 1,200 folks in the field, managing the aisles for our customers. We have the ability to pick pack and ship products directly to the customer and we have over 60 years of experience and relationships throughout our customers' organizations.

無論一包緊固件的價格是 0.50 美元還是 2 美元，與大多數日常用品的成本相比，它都是相對較小的，並且它可以幫助您完成一個項目，並且很多時候可以解決問題。我對 Hillman 的喜愛之處在於，我們比一般的供應商或經銷商能提供更多的東西。我們有 1,200 名員工在現場為客戶管理過道。我們有能力挑選、包裝並將產品直接運送給客戶，我們在客戶組織中擁有超過 60 年的經驗和關係。

The moat has been built over the past six decades has allowed us to become a trusted partner and become – being a trusted partner helps when you're dealing with some of the world's largest retailers.

過去六十年來建立的護城河使我們成為值得信賴的合作夥伴——當您與一些世界上最大的零售商打交道時，成為值得信賴的合作夥伴會有所幫助。

On the other side of the equation, we have our long-term supplier partners. In 2018, we sourced nearly 50% of our products from China. Since then we worked hard to diversify our global supply chain including working with new suppliers who source throughout the world.

另一方面，我們有長期的供應商合作夥伴。2018年，我們有近50%的產品來自中國。從那時起，我們努力實現全球供應鏈多元化，包括與世界各地的新供應商合作。

Given the current environment, we are accelerating our Dual Faucet strategy and believe we can reduce our exposure to suppliers based in China to approximately 20% by the end of the year. The Dual Faucet strategy is the concept of buying product not only from multiple suppliers, which has always been our strategy but from multiple suppliers in multiple countries. Our goal is to have a flexible supply chain that allows us to deliver quality products at the best overall value for our customers.

鑑於當前環境，我們正在加速實施「雙水龍頭」策略，並相信到今年年底我們可以將對中國供應商的敞口降低至約 20%。雙水龍頭策略的概念是不僅從多個供應商購買產品（這一直是我們的策略），而且從多個國家的多個供應商購買產品。我們的目標是擁有一條靈活的供應鏈，使我們能夠以最佳的整體價值向客戶提供優質的產品。

Our world-class logistics and operations team will continue bringing best-in-class products to our customers and importantly, deliver orders on time and in full. The core team at Hillman has worked side-by-side with very little turnover over the past several years.

我們世界一流的物流和營運團隊將繼續為客戶提供一流的產品，重要的是，按時、完整地交付訂單。希爾曼的核心團隊在過去幾年一直並肩工作，人員流動很小。

We've been battle-tested, COVID, rampant inflation, supply chain disruptions. We have seen our challenges and our results prove that we can execute. Our approach to these tariffs will be straightforward. Our customers understand what is going on, our suppliers do too. We are confident we will manage through this and believe we will come out a stronger company on the other side.

我們已經經歷了疫情、猖獗的通貨膨脹、供應鏈中斷等測試。我們已經看到了挑戰，我們的成果證明我們能夠執行。我們對這些關稅的態度是直截了當的。我們的客戶了解發生了什麼，我們的供應商也了解。我們有信心渡過難關，並相信最終我們會成為一家更強大的公司。

Now let's jump into a more detailed look at the quarter. Net sales in the first quarter of 2025 totaled $359.3 million, which increased 2.6% versus the first quarter of 2024, driving our top line sales from the Intex acquisition, which closed at the end of 2024. This added about four points of growth versus last year.

現在讓我們更詳細地了解本季的情況。2025 年第一季的淨銷售額總計 3.593 億美元，比 2024 年第一季成長 2.6%，推動了我們因 2024 年底完成的 Intex 收購而實現的營收成長。與去年相比，這增加了約 4 個點的成長。

Also contributing to our net sales during the quarter was two points of growth from new business, a three-point headwind from market volumes and a neutral impact from price and FX. For the quarter, adjusted EBITDA increased 4.2% to $54.5 million compared to $52.3 million last year and our adjusted EBITDA margins improved by 30 basis points to 15.2%.

本季度，新業務為我們淨銷售額貢獻了 2 個百分點的成長，市場銷售帶來的 3 個百分點的阻力，以及價格和外匯帶來的中性影響。本季度，調整後 EBITDA 成長 4.2% 至 5,450 萬美元，而去年同期為 5,230 萬美元，調整後 EBITDA 利潤率提高 30 個基點至 15.2%。

Adjusted gross margins for the quarter totaled 46.9%, which were down slightly from 47.6% during the year ago quarter and sequentially from 47.7% during the fourth quarter of 2024. Weighing on margins for the quarter was mixing in more Koch and Intex, which have margin rates slightly below our overall Hardware and Protective Solutions segment. We continue to grow and integrate these businesses and expect to see margin improvement in both as we continue to realize synergies.

本季調整後毛利率為 46.9%，較去年同期的 47.6% 略有下降，較 2024 年第四季的 47.7% 較上季下降。本季利潤率受到科赫和 Intex 等公司的影響，這兩家公司的利潤率略低於我們整體硬體和防護解決方案部門。我們將繼續發展和整合這些業務，並期望隨著我們繼續實現協同效應，兩者的利潤率都將提高。

Net sales in Hardware and Protective Solutions or HPS, which is our biggest segment increased by 5.6% over the comparable period, while our adjusted EBITDA increased by 15.8% to $37.4 million. Our results were driven by contributions from the Intex acquisition and new business wins.

硬體和防護解決方案（HPS）是我們最大的業務部門，其淨銷售額年增 5.6%，而我們的調整後 EBITDA 成長 15.8%，達到 3,740 萬美元。我們的業績得益於 Intex 收購和新業務的勝利。

Net sales in Robotics and Digital Solutions or RDS were up 1.9% versus the year ago quarter. We are pleased to see RDS return to growth during the quarter, which is a positive reflection of our MinuteKey 3.5 rollout.

機器人和數位解決方案（RDS）的淨銷售額比去年同期成長了 1.9%。我們很高興看到 RDS 在本季度恢復成長，這對我們的 MinuteKey 3.5 的推出是一個積極的反映。

Adjusted gross margins and adjusted EBITDA margins were down slightly, totaling 70.9% and 27.3% respectively. As of today, we have over 1700 MinuteKey 3.5 machines in the field and we expect to finalize our rollout to our two largest customers by the end of 2026.

調整後的毛利率和調整後的 EBITDA 利潤率略有下降，分別為 70.9% 和 27.3%。截至今天，我們已在現場部署了超過 1700 台 MinuteKey 3.5 機器，預計在 2026 年底前向我們最大的兩個客戶完成推廣。

Turning to Canada, net sales in our Canadian business was down 18.7%, compared to the prior year quarter. Driving our results was the 12% decline in existing home sales during the quarter, political and economic uncertainty and a challenging retail environment. FX headwinds weighed on Canada's results as well. For the full year, we expect adjusted EBITDA margins to remain above 10%.

談到加拿大，我們加拿大業務的淨銷售額與去年同期相比下降了 18.7%。推動我們業績成長的因素包括本季現房銷售下降 12%、政治和經濟不確定性以及充滿挑戰的零售環境。外匯不利因素也對加拿大的業績產生了影響。我們預計全年調整後的 EBITDA 利潤率將維持在 10% 以上。

We have the best retail partners and the highest market share in hardware in Canada and we are confident this business will return to profitable growth when we get help from the macro. As we look at Hillman overall, we believe we are in a great position with our customers and can successfully execute in this environment.

我們擁有最好的零售合作夥伴和加拿大最高的硬體市場份額，我們相信，在宏觀經濟的幫助下，這項業務將恢復獲利成長。當我們全面審視希爾曼時，我們相信我們在客戶方面處於有利地位，並且能夠在這種環境下成功運作。

With that, let me turn it over to Rocky, to talk financials and guidance, Rocky?

說完這些，讓我把話題交給 Rocky，來談談財務和指導問題，Rocky？

Thanks JMA. Let's dive right into our results, and then we'll get to our guidance. Net sales in the first quarter of 2025 totaled $359.3 million, an increase of 2.6% versus the prior year quarter. First quarter adjusted gross margin decreased by 70 basis points to 46.9% versus the prior year quarter, and were in line with our expectations.

謝謝 JMA。讓我們直接了解我們的結果，然後我們再得到指導。2025 年第一季淨銷售額總計 3.593 億美元，比去年同期成長 2.6%。第一季調整後毛利率較去年同期下降 70 個基點至 46.9%，符合我們的預期。

Adjusted SG&A as a percentage of sales decreased to 31.7% during the quarter, from 32.7% from the year ago quarter, which was also in line with our expectations. Adjusted EBITDA in the first quarter was $54.5 million which grew 4% versus the year ago quarter.

本季調整後的銷售、一般及行政費用佔銷售額的百分比從去年同期的 32.7% 下降至 31.7%，這也符合我們的預期。第一季調整後 EBITDA 為 5,450 萬美元，較去年同期成長 4%。

Our adjusted EBITDA to net sales ratio during the quarter was 15.2%, which compares favorably to 14.9% a year ago. Contributing to our healthy adjusted EBITDA margin was our positive mix of price/cost and efficient operations.

本季我們的調整後 EBITDA 與淨銷售額比率為 15.2%，與去年同期的 14.9% 相比有所改善。我們良好的價格/成本組合和高效的營運有助於實現健康的調整後 EBITDA 利潤率。

Now let me talk about cash flow. For the 13 weeks ended March 29, 2025, net cash used by operating activities was $0.7 million, compared to cash flow provided by operating activities of $11.7 million in the year ago period. Capital expenditures totaled $20.7 million for the quarter. This compared to $17.8 million in the prior year.

現在我來談談現金流。截至 2025 年 3 月 29 日的 13 週內，經營活動所用淨現金為 70 萬美元，而去年同期經營活動提供的現金流為 1,170 萬美元。本季資本支出總計 2,070 萬美元。相比之下，上一年同期為 1,780 萬美元。

For the first quarter of 2025, free cash flow of negative $21.3 million was consistent with our expectation compared to negative free cash flow of $6.1 million in the year ago quarter. Our spend was driven by our inventory build for our spring and summer busy season as well as building MinuteKey 3.5 machines and related retrofits.

2025 年第一季度，自由現金流為負 2,130 萬美元，與去年同期的負 610 萬美元自由現金流相比，與我們的預期一致。我們的支出主要來自於為春季和夏季繁忙季節建立庫存以及建造 MinuteKey 3.5 機器和進行相關改造。

Next let me turn to Leverage and Liquidity. We ended the first quarter of 2025 with $703.7 million of total net debt outstanding. Liquidity available totaled $200.9 million consisting of $164.6 million of availability on our credit facility and $36.3 million of cash and equivalents.

接下來讓我談談槓桿和流動性。截至 2025 年第一季度，我們的未償還淨債務總額為 7.037 億美元。可用流動資金總額為 2.009 億美元，其中包括 1.646 億美元的信貸額度可用資金和 3,630 萬美元的現金及等價物。

At the end of the quarter, our net debt to trailing 12-month adjusted EBITDA ratio was 2.9 times, compared to 2.8 times at the end of 2024 and 3.2 times a year ago. Our long-term adjusted EBITDA to net debt leverage ratio remains -- target remains at below 2.5 times. This will give us the flexibility to grow via M&A, and potentially use our improved financial strength in different ways to add stockholder value.

截至本季末，我們的淨負債與過去 12 個月調整後 EBITDA 的比率為 2.9 倍，而 2024 年底為 2.8 倍，去年同期為 3.2 倍。我們的長期調整後 EBITDA 與淨負債槓桿目標仍維持在 2.5 倍以下。這將使我們能夠靈活地透過併購實現成長，並可能以不同的方式利用我們增強的財務實力來增加股東價值。

Now let me turn to our guidance. Note that, all of these guidance numbers include tariffs, and assume the current tariff environment remains unchanged throughout the rest of 2025. We are reiterating our net sales guidance to be between $1.495 billion to $1.575 billion with a midpoint of $1.535 billion, reflecting 4% growth over last year.

現在讓我來談談我們的指導。請注意，所有這些指導數字都包含關稅，並假設當前的關稅環境在 2025 年剩餘時間內保持不變。我們重申淨銷售額預期，即 14.95 億美元至 15.75 億美元之間，中間值為 15.35 億美元，較去年同期成長 4%。

We are also reiterating our adjusted EBITDA guidance to be between $255 million and $275 million with a midpoint of $265 million reflecting 10% growth over last year. Our top line, midpoint makes the following full year assumptions: approximately a 2% lift from new business wins, a 2% lift from Intex and a neutral impact from tariffs meaning, our pricing for tariffs will be offset by volumes.

我們也重申調整後的 EBITDA 指引，即在 2.55 億美元至 2.75 億美元之間，中間值為 2.65 億美元，比去年增長 10%。我們的頂線、中點做出了以下全年假設：新業務贏得約 2% 的提升，Intex 的提升 2%，關稅的影響為中性，這意味著我們的關稅定價將被銷售所抵消。

As JMA mentioned, we calculate the annualized run rate for these new tariffs will be approximately $250 million. To the extent we pay for these tariffs we expect to price for them dollar-for-dollar. For the top line, we believe that we will be successful in getting price increases done which will positively impact us.

正如 JMA 所提到的，我們計算出這些新關稅的年化運行率約為 2.5 億美元。在我們支付這些關稅的範圍內，我們期望以一比一的價格定價。對於營收而言，我們相信我們將成功實現提價，這將對我們產生積極的影響。

However, we expect that the consumer will be under pressure with higher prices and that will be a headwind to market volumes. As for new business wins there are some opportunities for us to win new business in this tariff environment.

然而，我們預期消費者將面臨價格上漲的壓力，這將對市場銷售造成不利影響。至於新業務的贏得，在這種關稅環境下我們有一些機會贏得新業務。

For example, we are already talking to our customers about product categories where we source from low-tariff countries and the incumbent sources from China. For the bottom line, holding our top line plus the timing of how COGS and price flow through our income statement give us confidence to hold our EBITDA guidance.

例如，我們已經在與客戶討論我們從低關稅國家採購的產品類別以及從中國採購的現有產品類別。就底線而言，保持我們的營業收入加上 COGS 和價格在我們的損益表中流動的時間使我們有信心保持我們的 EBITDA 指引。

Today, tariffs are being charged when imported products hit U.S. ports, yet our price increases do not immediately go into effect. It is customary for us to give retailers time to adjust their retail prices. Because of this we are now expecting a working capital use for the year resulting directly from tariffs. Because of the uncertainties around the timing and magnitude of tariffs, we are withdrawing our free cash flow guidance.

如今，進口產品抵達美國港口時就會被徵收關稅，但我們的價格上漲並不會立即生效。我們通常會給予零售商時間來調整零售價格。因此，我們預計今年的營運資金使用將直接來自關稅。由於關稅時間和幅度的不確定性，我們撤回了自由現金流指引。

However, there are many variables that impact leverage. We will manage those variables, and we are confident we can end the year around 2.5 times leverage, slightly elevated from our prior expectations.

然而，影響槓桿的變因有很多。我們將管理這些變量，並且我們有信心在今年年底實現 2.5 倍左右的槓桿率，略高於我們先前的預期。

Now, let me spend a minute talking about the timing of how COGS flow through our income statement and its impact on our bottom line. Typically, Hillman has about four to six months of worth of inventory in the channel. That means the products that arrive at the port today that are subject to tariffs will not show up in our cost of goods sold until September, October, November time frames. And we don't expect to see the full impact from price increases till the third quarter.

現在，讓我花一點時間談談 COGS 如何流入我們的損益表的時間及其對我們的底線的影響。通常情況下，希爾曼在渠道中擁有大約四到六個月的庫存。這意味著今天抵達港口且需要繳納關稅的產品要到九月、十月和十一月才會出現在我們的銷售成本中。我們預計直到第三季才能看到價格上漲的全部影響。

During the second quarter, net sales will not see a material benefit from price and COGS will not yet increase from tariffs. However, in the third quarter, net sales will benefit from price and COGS will not yet fully increase from tariffs. And then, during the fourth quarter, net sales will benefit from price and COGS will have increased from tariffs.

在第二季度，淨銷售額不會因價格上漲而獲得實質收益，而銷貨成本也不會因關稅而增加。不過，第三季淨銷售額將受惠於價格上漲，而銷貨成本還不會因關稅而完全增加。然後，在第四季度，淨銷售額將受益於價格，而銷貨成本將因關稅而增加。

Our focus remains controlling the controllables, and we believe we have done a great job doing that. The midpoint of our updated guidance for both of those metrics puts us relatively in line with our historic growth algorithm.

我們的重點仍然是控制可控因素，我們相信我們在這方面做得很好。我們對這兩個指標的最新指導的中點使我們相對符合我們的歷史成長演算法。

With that, let me turn it back to JMA.

說完這些，讓我把話題轉回 JMA。

Thanks, Rocky. As we laid out in our prepared remarks, we are confident we can handle this tariff situation. Let me summarize. Our sourcing team has been in Asia for the last several weeks meeting with current potential suppliers to continue implementing our global supply chain strategy. Our sales teams are working with our customers to make sure they are taken care of, while we get price to cover our tariff exposure.

謝謝，洛基。正如我們在準備好的發言中所述，我們有信心能夠處理好這項關稅問題。讓我總結一下。我們的採購團隊過去幾週一直在亞洲與現有潛在供應商會面，以繼續實施我們的全球供應鏈策略。我們的銷售團隊正在與客戶合作，以確保他們得到照顧，同時我們獲得的價格可以彌補我們的關稅風險。

Remember, most of our products are for repair and maintenance projects. You can't do a project without them. In addition, our products are typically inexpensive, have very little elasticity and are not a large portion of the cost of the project. I'm confident we will successfully navigate tariffs with our strategic partners on both the supplier and customer side of the business. Our outstanding teams at Hillman have dealt with challenges successfully in the past, and we will do it again.

請記住，我們的大多數產品都是用於維修和保養項目。沒有他們你就無法完成專案。此外，我們的產品通常價格低廉，彈性很小，並且只佔專案成本的很大一部分。我相信，我們將與供應商和客戶的策略夥伴成功解決關稅問題。希爾曼的優秀團隊過去曾成功應對挑戰，我們也會再次成功。

With that, I'll turn it back to Gigi for the Q&A portion of the call. Gigi, please open the call for questions.

說完這些，我會把電話會議的問答環節交還給 Gigi。Gigi，請開始提問。

(Operator Instructions)

（操作員指示）

Lee Jagoda, from CJS Securities.

CJS 證券公司的 Lee Jagoda。

Hi. Good morning.

你好。早安.

Good morning, Lee.

早安，李。

So thanks for all of the quantifications around the tariffs and the timing. So I'll switch to other topics for now. I guess, starting with the RDS business, it looks like the margins had a pretty negative incremental margin impact, I would assume, partially as a result of the rollout. Given we're expected to see some growth for the balance of the year, what do incremental margins look like either year-over-year or off of the Q1 base as we go forward and grow sales?

感謝您對關稅和時間的所有量化。所以我現在要轉到其他話題。我想，從 RDS 業務開始，看起來利潤率對增量利潤率產生了相當負面的影響，我想，部分原因是推出這項業務的結果。鑑於我們預計今年餘下時間會出現一些增長，隨著銷售額的不斷增長，增量利潤率與去年同期相比或與第一季基數相比會如何？

Yeah, Lee, the -- what happened in the first quarter when you think about RDS is we did see because of the incremental rollout plus some of the moves that are happening at non-incremental rollout customer, we did see some pressure. Again, you also have to remember that Q1 is a light revenue month relative to the other quarters during the year. And so, we would expect that incrementally and even overall, we'll be back at 30-plus EBITDA rate and in the 70s for gross margins for the rest of the year.

是的，李，當你想到 RDS 時，我們確實看到第一季發生的事情，因為增量推出加上非增量推出客戶正在發生的一些舉措，我們確實看到了一些壓力。再次，您還必須記住，與一年中的其他季度相比，第一季是收入較少的月份。因此，我們預計，今年剩餘時間內，我們的 EBITDA 率將逐步恢復到 30 以上，毛利率將達到 70 以上。

Got it. That's great. And then, just shifting over to personal protective for the follow-up, it outperformed our estimate by quite a bit. Was there any prebuying ahead in terms of the tariff impact or promotional-related activities? And how do we think about the balance of the year given that dynamic?

知道了。那太棒了。然後，只要轉向個人防護進行後續行動，它的表現就會遠遠超出我們的預期。就關稅影響或促銷相關活動而言，是否有預購？考慮到這種動態，我們如何考慮今年的平衡？

Yeah I think the team -- first off no material pull-forwards in that business. Promo activity was strong, was planned to be strong and we the team actually outperformed. We were really pleased with how the PS business performed. Some of the products that we mixed in last year, some of the new products have actually gotten some really good traction. So we're proud of what the PS team has delivered.

是的，我認為團隊——首先，該業務沒有實質的向前推進。促銷活動很強大，計劃也很強大，而且我們團隊實際上表現優異。我們對 PS 業務的表現感到非常滿意。我們去年推出的一些產品和一些新產品實際上已經獲得了很好的迴響。因此，我們對 PS 團隊所取得的成果感到自豪。

And then for the balance of the year, I know we reiterated the full year guidance but in promotional or in personal protective in particular, how does that look relative to the expectations you had starting the year?

然後，對於今年的餘額，我知道我們重申了全年指導，但在促銷或個人防護方面，與您年初的預期相比情況如何？

Yeah. I would say generally in line, Lee. I mean right now we're not changing guidance. And at this point, we're in a bit of a wait and see, but we feel really good about where that business is positioned.

是的。我想說總體上是一致的，李。我的意思是現在我們不會改變指導方針。目前，我們還處於觀望階段，但我們對該業務的定位感到非常滿意。

Okay, great, I'll hop back into you. Thanks.

好的，太好了，我會回到你身邊。謝謝。

Matthew Bouley from Barclays Investment Bank.

巴克萊投資銀行的 Matthew Bouley。

Good morning. You have Anika Dholakia on for Matt today. Thank you for taking the question.

早安.今天，Anika Dholakia 代替 Matt 登場。感謝您回答這個問題。

No problem.

沒問題。

Thank you for taking the questions. So first off. Good morning. So first off, I wanted to speak on the full year guidance. So you guys spoke to volumes down 17% in the second half. Wondering how this compares to your prior volume assumptions. I'm just wondering more broadly what points of incremental upside could be offsetting this volume weakness, that's leading you guys to holding the guide? Thanks.

感謝您回答這些問題。首先。早安.首先，我想談談全年指導。所以你們說下半年銷售量下降了 17%。想知道這與您之前的數量假設相比如何。我只是更廣泛地想知道哪些增量上行點可以抵消這種交易量疲軟，從而導致你們持有指南？謝謝。

Yes, this is Rocky. Let me take that. Our initial guide when we thought about the full year, the midpoint was down about 1% market volumes, which compared -- I would say it was below where our big retailers were. They were probably up one point or two points.

是的，這是洛基。讓我來接手吧。當我們考慮全年時，我們最初的指導是，中點市場交易量下降了約 1%，相比之下——我想說它低於我們的大型零售商的水平。他們可能領先一分或兩分。

As we said in our prepared remarks, we've held the guidance and that assumes down 17% market. This business has never seen that before. The worst year in the history of Hillman which was 2009, volumes were down 10%. And so, we do believe that this down 17% is a pretty conservative view of the back half.

正如我們在準備好的演講中所說，我們堅持這項指導方針，並假設市場下跌 17%。這個行業以前從來沒有遇到過這種情況。2009 年是希爾曼歷史上最糟糕的一年，銷量下降了 10%。因此，我們確實認為，下半年下降 17% 是一個相當保守的看法。

Now having said that as we said in our prepared remarks, no one has lived through tariffs like this at least in our lifetimes that we've had to deal with from a business perspective. And so it's uncharted territory. And saying that we're going to go get all the price and volumes aren't going to be impacted relatively significantly, we think would not be prudent given the situation we're in.

正如我們在準備好的發言中所說的那樣，從商業角度來看，至少在我們的一生中，沒有人經歷過這樣的關稅。所以這是一個未知領域。並且說我們將確保所有價格和交易量不會受到較大影響，但考慮到我們所處的情況，我們認為這並不謹慎。

So that's kind of where we landed on the numbers. Again, we would tell you we hope we're wrong and we hope that market volumes aren't impacted that much. But it's -- but again, being where we are, we thought it was prudent to hold and not change anything at least at this point.

這就是我們得出的數字。再次，我們想告訴您，我們希望我們錯了，我們希望市場交易量不會受到太大影響。但是 — — 但是，就我們現在的狀況而言，我們認為至少在目前這個階段，保持現狀並且不做任何改變是明智的。

Got it. That's very helpful. Thank you. And then on my second question, looking at tariffs longer term, I appreciate your details on the geographic supplier breakdown in 2025. But how does this translate to maybe how you're thinking about this breakdown in the future? And then if there's any other region that you'd like to drive higher exposure lower exposure? Thanks.

知道了。這非常有幫助。謝謝。然後關於我的第二個問題，從長期來看關稅，我很感謝您提供有關 2025 年地理供應商細分的詳細資訊。但是，這可能意味著您將來會如何看待這種故障？那麼，您是否希望在其他地區提高曝光率或降低曝光率？謝謝。

Thanks. Yeah, Good question. We did share in the prepared remarks that we're targeting to be about 20% by year-end in China. But to answer your question in more detail, we really want to continue to find the best places to source for our customers.

謝謝。是的，好問題。我們確實在準備好的發言中表示，我們的目標是到今年年底在中國達到 20% 左右。但為了更詳細地回答您的問題，我們確實希望繼續為我們的客戶找到最佳的採購地點。

We actually are very excited about opportunities that our teams have been actually working on for years. So the -- when this I'll say crisis or change in tariff strategy came into place, we're already moving down the road to move into other areas of Southeast Asia and India for example.

我們實際上對我們的團隊多年來一直努力爭取的機會感到非常興奮。所以——當這場危機或關稅策略改變時，我們已經開始向東南亞和印度等其他地區進軍。

So we'll continue to extend and drive volume into those areas and we're excited about some of the opportunities that are in front of us. So you'll see us continue to diversify our portfolio. But at the same time, we'll make sure that we have the right quality products for our customers that can deliver on time and in full.

因此，我們將繼續擴展這些領域並推動其發展，我們對擺在我們面前的一些機會感到興奮。因此你會看到我們繼續實現投資組合多樣化。但同時，我們將確保為客戶提供優質產品，並按時、按量交付。

So we feel good about our strategy and what we talked about in the prepared remarks. So we'll continue to update you on future quarters, but you'll see us diversify our base.

因此，我們對我們的策略以及我們在準備好的發言中談到的內容感到滿意。因此，我們將繼續向您通報未來幾季的情況，但您將看到我們的基礎更加多樣化。

Great thanks good luck.

非常感謝，祝你好運。

Thank you.

謝謝。

Stephen Volkmann from Jefferies.

傑富瑞 (Jefferies) 的史蒂芬福克曼 (Stephen Volkmann)。

Hi, Good morning, guys. Maybe just one more tug on the thread here around tariffs Rocky. So we're sort of talking about 17% price in the second half. Is it all in the second half? Or is it more in the fourth quarter than the third?

嗨，大家早安。也許這只是對有關關稅 Rocky 的討論的另一個牽動。所以我們談的是下半年 17% 的價格。一切都在下半場嗎？還是第四季比第三季更多？

Stephen, you're asking about when we take price, we expect all of the price by July 1.

史蒂芬，你問的是什麼時候定價，我們預計所有價格將在 7 月 1 日前確定。

Okay. Great. And then you talked about this being dollar for dollar. So I guess the implication is that margins are a little lower as we go through this process?

好的。偉大的。然後您談到這是一美元對一美元。所以我猜這意味著當我們經歷這個過程時利潤率會稍微低一些？

Yeah, they are. If you think longer term, Stephen and we've said, we believe, we kind of structurally changed the margins in this business to 47%. Assuming the tariffs stay where they are and we price dollar for dollar for tariffs, this will impact that rate by about 300 basis points on a long-term once they're all in place and we fully lap them.

是的。如果你考慮得更長遠，史蒂芬，我們已經說過，我們相信，我們從結構上將這項業務的利潤率改變為 47%。假設關稅保持不變，並且我們以一美元對一美元的價格定價，那麼一旦所有關稅都到位並且我們完全承擔這些關稅，這將對長期稅率產生約 300 個基點的影響。

So, it is a margin rate impact. But again, we're going to be good partners with our customers. We're going to price dollar for dollar. So far those conversations are going very well. And again, we think we can come out of this a stronger company on the backside.

因此，這會對保證金率產生影響。但同樣，我們將與客戶成為良好的合作夥伴。我們將按一美元一美元地定價。到目前為止，這些對話進展非常順利。而且，我們相信，我們可以擺脫困境，成為一家更強大的公司。

Got it. And then, is there an opportunity maybe over some longer period to get back to that previous target over time?

知道了。那麼，是否有機會在更長的時間內逐漸回到先前的目標？

It's challenging. When you think about $250 million of cost, Stephen, the way to get back to those rates is going to be if tariffs come down, and if they come down substantially. If they stay at those levels, our goal will be to grow our margin rate and our EBITDA rate like we have in the business over time, but it's going to be incremental. It's not going to be at big numbers like that unless the tariffs come off.

這很有挑戰性。史蒂芬，當你考慮到 2.5 億美元的成本時，恢復到這些利率的方法是關稅下降，而且是大幅下降。如果它們保持在這些水平，我們的目標就是提高我們的利潤率和 EBITDA 率，就像我們在業務中隨著時間的推移所實現的那樣，但這將是一個漸進的過程。除非取消關稅，否則數字不會這麼大。

Got it. Okay. Makes sense. Thank you. I’ll pass it on.

知道了。好的。有道理。謝謝。我會傳達它。

Thanks.

謝謝。

David Manthey from Baird.

來自貝爾德的 David Manthey。

Yeah, Hi. Good morning, everyone. First question is on -- could you talk about the similarities and differences of the current environment versus what you experienced during the COVID supply chain issues? And I guess, you've outlined 2025 pretty well. I'm wondering if you can conceptually at least look forward and say, what happens in 2026 kind of good case versus bad case scenario?

是的，你好。大家早安。第一個問題是——您能談談當前環境與您在 COVID 供應鏈問題期間所經歷的異同嗎？我想，您已經很好地概述了 2025 年。我想知道您是否至少可以從概念上展望未來，並說 2026 年會發生什麼好的情況和壞的情況？

Yes, So I'll start -- Dave, good morning -- with the supply chain side of it. So it is a different scenario right now. Actually, we feel really good about our service levels. The company is performing better candidly than we ever have on a service level taking care of our customers in aggregate.

是的，那麼我先從供應鏈方面開始——戴夫，早安。所以現在的情況有所不同。事實上，我們對我們的服務水準感到非常滿意。坦白說，公司在客戶服務水準上的表現比以往都要好。

And just like anyone there's going to be some disruptions here and there, but we haven't seen anything material. Our supplier base has been supportive during these challenges and we've continued to flow products.

就像任何人一樣，這裡或那裡都會出現一些混亂，但我們還沒有看到任何實質的混亂。在面臨這些挑戰時，我們的供應商群體一直給予支持，並且我們繼續供應產品。

So hopefully that answers your question. We don't see the disruptions that we saw before. That said, we're planning and believe that some of the moves we're going to make are going to help us smooth out some of those challenges that we see coming down the road. So at this point, supply chain is in good shape.

希望這能回答你的問題。我們不再看到以前所見到的混亂。話雖如此，我們正在計劃並相信我們將採取的一些舉措將幫助我們解決未來可能遇到的一些挑戰。因此目前來看，供應鏈狀況良好。

From a 2026 perspective, I think that when we look at our business, we're operating well. We're going to continue to perform well. We started the year -- or I should say, last year when we planned 2025, we felt like it was going to be a tale of two halves. Question is out now second half of the year, is it going to be challenging. As you heard Rocky and I both framed, we expect volumes to be down.

從 2026 年的角度來看，我認為我們的業務運作良好。我們將繼續表現良好。我們開始今年——或者我應該說，去年當我們計劃 2025 年時，我們覺得這將是一個由兩個半部分組成的故事。現在的問題是，下半年是否會充滿挑戰。正如您聽到的 Rocky 和我所說的那樣，我們預計交易量將會下降。

We still believe there's a tremendous amount of opportunity to pent-up demand longer term just like you hear a lot of our partners talk about in the marketplace that the home improvement market has been under pressure for the last several years. And we believe when it turns it will be a strong run.

我們仍然相信，長期來看，被壓抑的需求仍存在巨大的機會，就像您聽到我們的許多合作夥伴在市場上談論的那樣，家居裝修市場在過去幾年一直承受著壓力。我們相信，當情況好轉時，情況將會強勁發展。

So too early for us to factor in any guide from a percentage or numbers perspective for 2026, but we're going to still take care of our customers and make sure we're ready when it comes.

因此，對我們來說，從百分比或數字角度來考慮 2026 年的任何指導還為時過早，但我們仍將照顧我們的客戶，並確保我們做好準備。

Okay. Thank you. And second question, are your shipping container price contracts related to the mix of countries on slide 8? Or is it more of an open concept? And what I'm wondering is if there's a shift in volumes like let's say, the China tariffs are reduced and there's an influx of container demand coming from China. Does that -- is there a disconnect there? Or does it not matter?

好的。謝謝。第二個問題，您的貨櫃運輸價格合約是否與幻燈片 8 中的國家組合有關？或者它更像是一個開放的概念？我想知道的是，如果貨運量發生變化，比如說，中國關稅降低，來自中國的貨櫃需求大量湧入。那是不是──那裡存在脫節？或者說這無所謂？

I won't say it doesn't matter. We actually don't believe, there's a disconnect. What I would say is, we actually just had this conversation yesterday at length. I mean we feel very good about where our container cost, and I'll say pricing is for 2025. It is going to be -- even though it is inflation, it's going to be better than we initiated. And with where we're looking to move products, we're actually really well positioned.

我不會說這不重要。我們實際上並不相信存在脫節。我想說的是，我們昨天實際上剛剛進行了一次詳細的對話。我的意思是，我們對我們的貨櫃成本感到非常滿意，而且我會說定價是針對 2025 年的。這將是——儘管這是通貨膨脹，但它將比我們開始時的狀況更好。就我們尋求的產品銷售方向而言，我們實際上已經處於非常有利的位置。

We believe there will be some disruptions in the marketplace for those that will go out there and float on spot. Since we have contracts in place, we believe we've got a nice supply chain again depending on what demand does. But assuming what we have in our guide and what we think the year could be, we feel like we're well positioned Dave. So it will be interesting to see what happens but we feel like we got the right steps and contracts in place.

我們相信，對於那些願意到現場進行試點的企業來說，市場將會受到一些幹擾。由於我們已經簽訂了合同，我們相信我們會再次擁有良好的供應鏈，這取決於需求。但假設我們的指南中已經包含了哪些內容，並且我們認為今年的情況可能會如何，那麼我們覺得我們已經做好了充分的準備，戴夫。因此，看看接下來會發生什麼將會很有趣，但我們覺得我們已經採取了正確的步驟並簽訂了合約。

And just to clarify, is it based on country of origin or not?

需要澄清的是，它是否基於原產國？

It is based on ports. So yes, it is based on country of origin, correct.

它是基於連接埠的。是的，它是基於原產國的，正確。

Okay. All right. Thanks very much. You're welcome. Thank you.

好的。好的。非常感謝。不客氣。謝謝。

(Operator Instructions)

（操作員指示）

Reuben Garner from Benchmark.

來自 Benchmark 的 Reuben Garner。

Thank you. Good morning, guys.

謝謝。大家早安。

Good morning, Reuben.

早安，魯本。

Sorry, to harp on the tariff thing, but a couple of follow-ups. So first of all, what is left in China from a product perspective? And those categories, I guess, can you talk about the price elasticity you've seen in them historically, relative to some of your other products?

抱歉，我反覆談論關稅問題，但還有一些後續問題。那麼首先，從產品角度來看，中國還剩下什麼？我想，您能否談談這些類別相對於其他一些產品的歷史價格彈性？

So what's left? I mean, so Reuben, to your point, I'll say core fastening for instance, nuts and bolts regular core fastening, some hardware products. We do buy dip gloves out of China today and some other products like that. So there is a mix in the HPS business that is there.

那還剩下什麼？我的意思是，魯本，對於你的觀點，我會說例如核心緊固件，螺母和螺栓常規核心緊固件，一些硬體產品。我們今天確實從中國購買浸膠手套和其他一些類似的產品。因此，HPS 業務存在混合情況。

We have been developing sources outside of that region for those product lines for a while, as I mentioned earlier and we'll continue to move those, when we have the right overall cost and quality. So, that is something the teams are working hard on and we'll continue to do so. So, those are some of the products that are there.

正如我之前提到的，我們一直在該地區以外的地區為這些產品線開發貨源，當我們擁有合適的總體成本和品質時，我們將繼續轉移這些貨源。所以，這是團隊正在努力的事情，我們將繼續這樣做。這些就是那裡的一些產品。

Elasticity, we believe based on the increase in the percentages, as you know, they vary greatly in those products, not as concerned on the fastening side as we would be in something like gloves. So there is definitely elasticity. We don't have numbers to share with the broader audience, but we're working those activities now, and we'll make sure that we're continuing to move those products out of those countries, so they're less impacted than they would be today.

彈性，我們相信，基於百分比的增加，正如您所知，這些產品中的彈性差異很大，而我們對緊固方面並不像手套那樣關心。所以肯定存在彈性。我們沒有數字可以與更廣泛的受眾分享，但我們現在正在進行這些活動，我們將確保繼續將這些產品運出這些國家，以便它們受到的影響比現在更小。

Got it. And then on the pricing side, are these price increases already announced and in place? Are they permanent? Or are you using -- have you or the industry ever used, surcharges before? I know this is kind of unusual, but just trying to get some context, if this were to kind of go away in three months, like what it would look like?

知道了。那麼在定價方面，這些價格上漲是否已經宣布並實施了？它們是永久的嗎？或者您正在使用—您或您的行業曾經使用過附加費嗎？我知道這有點不尋常，但我只是想了解一些背景，如果這種情況在三個月內消失，會是什麼樣子？

Yeah, So, I mean as the price increases -- I won't go into great detail -- ongoing conversation with our customers and they're progressing. How we're going to do it? Surcharges, the way our pricing is set up, as you can imagine with the number of SKUs and the number of customers that's typically not how our customers like to operate. So there would be price increases. And then just like, we always would in the extreme times especially where we're able to move out of tariff-related areas, we're going to work with our customers to make sure that we have the right cost position, over the right time horizon.

是的，所以，我的意思是隨著價格上漲——我不會詳細說明——我們與客戶的持續對話正在取得進展。我們該怎麼做呢？附加費，我們的定價方式，正如您可以想像的那樣，考慮到 SKU 的數量和客戶數量，這通常不是我們的客戶喜歡的操作方式。因此價格將會上漲。然後，就像我們在極端時期一樣，特別是當我們能夠擺脫與關稅相關的領域時，我們將與客戶合作，確保我們在正確的時間範圍內擁有正確的成本地位。

Perfect, thank you guys and good luck. Thanks.

太好了，謝謝你們，祝你好運。謝謝。

Brian McNamara from Canaccord Genuity.

Canaccord Genuity 的 Brian McNamara。

Good morning. This is Madison Callinan on for Brian. Thanks for taking our questions. I'm not going to beat the dead horse on price increases, but when do you expect those to hit the shelves of retailers? And like have competitors preemptively taken price? Thanks.

早安.我是麥迪遜·卡利南 (Madison Callinan)，由布萊恩 (Brian) 主持。感謝您回答我們的問題。我不想再重複漲價的廢話，但是你預計這些產品什麼時候會進入零售商的貨架呢？競爭對手是否已經搶先採取價格措施？謝謝。

Yeah, I mean -- so I can't speak for what the retailers are going to do. They are obviously managing their P&L. So Madison, we are working with them on our cost side and being transparent, and you'll start seeing some of that flow through when they feel it's the right time. So it's hard to be vague, but I can't go any deeper than that at this point.

是的，我的意思是──所以我不能代表零售商發言。他們顯然正在管理他們的損益。因此，麥迪遜，我們正在成本方面與他們合作並保持透明，當他們覺得時機成熟時，你會開始看到其中一些成本的流出。所以很難含糊其辭，但目前我無法再深入地談論這一點。

That's okay. And then secondly, how is the current macro uncertainty impacting M&A? Like presumably isn't helping, but maybe it's pushing some operators to throw in the towel. Thanks.

沒關係。其次，目前的宏觀不確定性對併購有何影響？這可能沒什麼幫助，但也許會迫使一些業者放棄。謝謝。

Thanks. Yeah, I think, what we would tell you Madison is, the M&A pipeline is strong. I do think like you said, we're going to have more inbound than we probably had previously, because the tariff challenges for a smaller company who is like one product and not a strategic partner, is going to be tough for a lot of these large retailers. That being said, as you think about valuation today, we would tell you it's virtually impossible to determine what the value of a business is with all of the tariff uncertainty.

謝謝。是的，我想，我們要告訴你的是，麥迪遜的併購管道很強大。我確實認為，就像你說的，我們將會比以前擁有更多的入境商品，因為對於像單一產品而不是戰略合作夥伴的小公司來說，關稅挑戰對於許多大型零售商來說將是嚴峻的。話雖如此，當您今天考慮估值時，我們會告訴您，由於關稅存在許多不確定性，幾乎不可能確定企業的價值。

And so, while we're talking to a lot of people and we'll continue to and we'll continue to build our pipeline, until tariffs settle down and we've kind of gotten through the first cycle of understanding pricing and how that plays out, you're not going to see us actively doing any acquisitions.

因此，雖然我們正在與很多人交談，並且我們會繼續這樣做，我們將繼續建立我們的管道，但在關稅穩定下來，並且我們已經完成了了解定價及其如何發揮作用的第一輪循環之前，你不會看到我們積極進行任何收購。

Thank you, guys.

謝謝你們。

You’re welcome. Thanks, Madison.

別客氣。謝謝，麥迪遜。

This concludes the Q&A portion of today's call. I would like to turn the call back over to Mr. Adinolfi for some closing comments.

今天電話會議的問答部分到此結束。我想將電話轉回給阿迪諾爾菲先生，請他發表一些結束語。

Well, thank you everyone for joining. We appreciate you taking the time to listen to our call today on Q1. We look forward to coming back to you, next quarter and talking about the progress we continue to make at Hillman. Thanks and have a great day.

好吧，謝謝大家的加入。感謝您今天抽空聆聽我們關於 Q1 的電話會議。我們期待下個季度再次與您聯繫，並討論我們在希爾曼繼續取得的進展。謝謝，祝您有愉快的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。