JELD-WEN Holding Inc (JELD) 2023 Q1 法說會逐字稿

Thank you for standing by. My name is Kayla Baker, and I will be your conference operator today. At this time, I would like to welcome everyone to the JELD-WEN Holding, Inc. First Quarter 2023 Earnings Conference Call. (Operator Instructions) After the speaker's remarks, there will be a question and answer session. (Operator Instructions). I would now like to turn the call over to the Vice President of Investor Relations, James Armstrong.

謝謝你的支持。我叫凱拉·貝克，今天我將擔任你們的會議操作員。在此，我歡迎大家參加 JELD-WEN Holding, Inc. 2023 年第一季度收益電話會議。 （操作員說明） 演講者發言後，將進行問答環節。 （操作員說明）。我現在想將電話轉給投資者關係副總裁詹姆斯·阿姆斯特朗。

Thank you, and good morning. We issued our first quarter 2023 earnings release last night and posted a slide presentation to the Investor Relations portion of our website, which can be found at investor.jeld-wen.com. We will be referencing this presentation during our call.

謝謝你，早上好。我們昨晚發布了 2023 年第一季度收益報告，並在我們網站的投資者關係部分發布了幻燈片演示，該部分可在 Investor.jeld-wen.com 上找到。我們將在電話會議期間參考此演示文稿。

Today, I'm joined by Bill Christensen, Chief Executive Officer; and Julie Albrecht, Chief Financial Officer. Before I turn it over to Bill, I would like to remind everyone that during this call, we will make certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties, including those set forth in our earnings release and provided in our Forms 10-K and 10-Q filed with the SEC. JELD-WEN does not undertake any duty to update forward-looking statements, including the guidance we are providing with respect to certain expectations for future results.

今天，首席執行官比爾·克里斯滕森 (Bill Christensen) 也加入了我的行列。和首席財務官朱莉·阿爾布雷希特。在我把它交給比爾之前，我想提醒大家，在這次電話會議中，我們將做出某些構成 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述的陳述。這些陳述受到各種因素的影響。風險和不確定性，包括我們的收益報告中規定的風險和不確定性以及我們向 SEC 提交的 10-K 和 10-Q 表格中提供的風險和不確定性。 JELD-WEN 不承擔任何更新前瞻性陳述的責任，包括我們針對未來結果的某些預期提供的指導。

Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. Presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to their most directly comparable financial measures calculated under GAAP can be found in our earnings release and in the appendix of our earnings presentation.

此外，在今天的電話會議中，我們將討論非公認會計準則衡量標準，我們認為這些衡量標準有助於評估我們的業績。不應孤立地考慮此附加信息的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。這些非公認會計準則指標與根據公認會計準則計算的最直接可比的財務指標的調節可以在我們的收益報告和收益報告的附錄中找到。

With that, I would like to now turn the call over to Bill.

現在，我想將電話轉給比爾。

Thank you, James, and thank you, everyone, for joining our call today. I'm happy to report that we are making solid progress on our short-term measures to simplify the business, improve our cost structure and strengthen our balance sheet. Thanks to our employees around the world, our first quarter came in better than we expected. During the quarter, we reduced costs while improving service to our customers, all during a very uncertain macro environment.

謝謝詹姆斯，也謝謝大家今天加入我們的電話會議。我很高興地向大家報告，我們在簡化業務、改善成本結構和強化資產負債表的短期措施方面正在取得紮實進展。感謝我們世界各地的員工，我們第一季度的業績好於我們的預期。本季度，我們在非常不確定的宏觀環境中降低了成本，同時改善了對客戶的服務。

Turning to our first quarter highlights on Slide 4. We began the year with both sales and earnings coming in above our expectations. During the first quarter, demand was down year-over-year, however, not as soft as expected, and we outperformed our plan for price/cost. We also took steps to rightsize our inventories while still improving customer satisfaction metrics like on-time, in-full deliveries. Julie will talk more in depth about our financial performance in a few minutes.

轉向幻燈片 4 上我們第一季度的亮點。今年伊始，我們的銷售額和收益都超出了我們的預期。然而，第一季度的需求同比下降，但並不像預期的那麼疲軟，而且我們的價格/成本表現超出了我們的計劃。我們還採取措施調整庫存規模，同時仍然提高客戶滿意度指標，例如按時、全額交貨。朱莉將在幾分鐘內更深入地討論我們的財務業績。

Turning to Slide 5. We continue to focus on a 2-pronged approach, paying close attention to both the short as well as the long term with the transformation framework structured around people, performance and strategy. We're making good progress in strengthening the foundation of our business with an emphasis on both culture and capabilities. This is augmented by the active deployment of value creation plans to deliver on margin expansion through operational and organizational efficiency initiatives.

轉向幻燈片 5。我們繼續關注雙管齊下的方法，密切關注短期和長期，以及圍繞人員、績效和戰略構建的轉型框架。我們在加強業務基礎方面取得了良好進展，重點是文化和能力。通過積極部署價值創造計劃，通過運營和組織效率舉措實現利潤擴張，這一點得到了加強。

We are pushing down line of business accountability, rationalizing our global footprint and establishing detailed improvement targets around our sourcing and commercial excellence activities. And finally, we are focused on delivering improved cash flow to fund the value creation projects that will support our margin improvement. We are planning to focus future investments in areas such as factory automation, demand management and digital commerce. We're also developing a plan to deliver more consistent profitable growth.

我們正在推動業務責任，合理化我們的全球足跡，並圍繞我們的採購和商業卓越活動制定詳細的改進目標。最後，我們致力於改善現金流，為價值創造項目提供資金，從而支持我們提高利潤率。我們計劃將未來的投資重點放在工廠自動化、需求管理和數字商務等領域。我們還在製定一項計劃，以實現更穩定的利潤增長。

As I have said before, we need to simplify our long-term strategy, establishing clear deliverables designed to drive improved market performance and shareholder returns while giving customers more of what they value. Although we are not insulated from the weakening macro conditions in housing across the globe, we are gaining momentum from actions we already have in progress.

正如我之前所說，我們需要簡化我們的長期戰略，建立明確的可交付成果，旨在推動改善市場績效和股東回報，同時為客戶提供更多他們所看重的東西。儘管我們無法免受全球房地產宏觀環境疲軟的影響，但我們正在從已經採取的行動中獲得動力。

One of the most significant near-term actions we have taken relates to our Australasia business, and this is seen on Slide #6. On April 17, we announced the completion of our strategic review, resulting in a sale to Platinum Equity for approximately AUD 688 million. This was an important step towards executing our near-term strategy of simplifying our business and strengthening our balance sheet. We plan to use the net proceeds of approximately USD 450 million to repay debt and expect our leverage to be below 3x net debt to EBITDA on a pro forma basis by the end of this year.

我們採取的最重要的近期行動之一與我們的澳大利亞業務有關，這可以在幻燈片#6 中看到。 4 月 17 日，我們宣布完成戰略審查，最終以約 6.88 億澳元的價格出售給 Platinum Equity。這是執行我們簡化業務和加強資產負債表的近期戰略的重要一步。我們計劃使用約 4.5 億美元的淨收益來償還債務，預計到今年年底，我們的槓桿率將低於 EBITDA 淨債務的 3 倍。

In addition, we expect minimal tax leakage and anticipate the deal closing in the third quarter. I personally want to thank our entire Australasia team for their continued hard work. We have an active separation management office which is currently working with Platinum Equity on the transition plan and relevant closing details.

此外，我們預計稅收洩漏將降至最低，並預計交易將在第三季度完成。我個人要感謝我們整個澳大利亞團隊的持續辛勤工作。我們有一個積極的離職管理辦公室，目前正在與 Platinum Equity 就過渡計劃和相關結算細節進行合作。

Last quarter, we noted that we are focused on strengthening the foundation. And on Slide 7, you see the 3 key areas for our work. We have a tremendous amount of activity underway that we expect will deliver notable profitability improvements in the near and medium term. Our teams are consolidating numerous ideas that range from just do it improvements to more complex projects that are run through a review process and then sequenced. Knowing that we are in the early days of improving our profitability, I wanted to provide some insights into a few of the projects that are helping drive approximately $100 million in lower costs in 2023. These activities are incremental to actions we've already taken in late 2022 and early this year to improve our cost base across our operations and in SG&A.

上個季度，我們注意到我們的重點是加強基礎。在幻燈片 7 上，您可以看到我們工作的 3 個關鍵領域。我們正在進行大量活動，預計這些活動將在中短期內帶來顯著的盈利能力改善。我們的團隊正在整合眾多想法，從直接改進到通過審查流程運行然後排序的更複雜的項目。我知道我們正處於提高盈利能力的早期階段，因此我想對一些項目提供一些見解，這些項目將有助於在 2023 年降低成本約 1 億美元。這些活動是我們已經採取的行動的增量。 2022 年底和今年年初，以改善我們整個運營和 SG&A 的成本基礎。

First, we're improving our operating efficiency and driving cost out of the system. For example, we have recently started to implement a centralized logistics program in North America that will allow us to better optimize our transportation network and improve shipment visibility for us as well as our customers. This program, we expect to drive $15 million of annual cost out of our system.

首先，我們正在提高運營效率並降低系統成本。例如，我們最近開始在北美實施集中物流計劃，這將使我們能夠更好地優化我們的運輸網絡並提高我們和客戶的貨運可見性。通過該計劃，我們預計每年可節省 1500 萬美元的系統成本。

Further, we are scoping similar programs that leverage the enterprise to reduce costs through sourcing and centralized order and supply chain management. Second, we are focused on commercial excellence throughout the organization. In Europe, we are reviewing our go-to-market structure, including people, process and systems as well as end markets served. Expected results include sales and customer service efficiency targets as well as country level details to better calibrate pricing actions.

此外，我們正在研究類似的計劃，利用企業通過採購、集中訂單和供應鏈管理來降低成本。其次，我們專注於整個組織的商業卓越。在歐洲，我們正在審查我們的市場結構，包括人員、流程和系統以及所服務的終端市場。預期結果包括銷售和客戶服務效率目標以及國家級詳細信息，以更好地校准定價行為。

Finally, we continue to optimize our network footprint, which includes improving how we plan and execute our production. In North America's interior door business, we have reallocated production to sites to be closer to customers and to optimize production efficiencies. As we move forward, we anticipate expanding such opportunities across additional product categories.

最後，我們繼續優化我們的網絡足跡，其中包括改進我們計劃和執行生產的方式。在北美的室內門業務中，我們已將生產重新分配到更靠近客戶的地點並優化生產效率。隨著我們的前進，我們預計會在其他產品類別中擴大此類機會。

Additionally, in another step towards rationalizing our footprint in January of this year, we announced the ongoing closure of Atlanta doors facility, which we expect to deliver cost savings of about $11 million annually. As you can see from these examples and our results in the quarter, we are focused on delivering cost reduction and profit improvement initiatives.

此外，今年 1 月，為了合理化我們的足跡，我們宣布繼續關閉亞特蘭大門工廠，我們預計每年將節省約 1100 萬美元的成本。正如您從這些示例和本季度的業績中看到的，我們專注於實施降低成本和提高利潤的舉措。

To reiterate, these are a few of the projects we are working on to drive improved performance, and I look forward to sharing more examples in the quarters and years to come. As we implement our plans laid out on Slide 8, we have significant self-help opportunities that we expect to drive improved performance in the quarters and years to come. We are in the process of setting clear targets with well-defined value creation plans and will actively monitor them to ensure accountability.

重申一下，這些是我們正在致力於提高績效的一些項目，我期待在未來的季度和幾年中分享更多的例子。當我們實施幻燈片 8 中列出的計劃時，我們擁有重要的自助機會，我們預計這些機會將在未來幾個季度和幾年內推動績效的提高。我們正在製定明確的目標和明確的價值創造計劃，並將積極監控它們以確保問責制。

As we develop these plans, we are focusing on investment returns and a longer-term runway of innovation to drive future growth. On capital allocation, we remain committed to reducing our leverage below 3x, which we expect to achieve on a pro forma basis by the end of this year and includes the completion of our pending Australasia divestiture. We are also prioritizing investing in strong payback projects to further improve profitability.

在製定這些計劃時，我們重點關注投資回報和長期創新，以推動未來的增長。在資本配置方面，我們仍然致力於將槓桿率降低到 3 倍以下，預計在今年年底前實現這一目標，其中包括完成我們懸而未決的澳大利亞資產剝離。我們還優先投資回報強勁的項目，以進一步提高盈利能力。

And finally, we continue to focus on transparency with investors to help you understand the drivers and underlying fundamentals of our business. We are underway with developing our long-term goals. We're also committed to sharing more information when appropriate and giving mile markers to these goals so you can evaluate our progress along the way.

最後，我們繼續關注投資者的透明度，以幫助您了解我們業務的驅動因素和基本面。我們正在製定我們的長期目標。我們還致力於在適當的時候分享更多信息，並為這些目標提供里程標記，以便您可以評估我們一路走來的進展。

However, in the near term, our focus is on detailing our transformation plan that will reduce operating costs, rationalize our footprint, improve our commercial excellence and deliver on the large actions that we have already laid out.

然而，短期內，我們的重點是詳細制定我們的轉型計劃，該計劃將降低運營成本、合理化我們的足跡、提高我們的商業卓越性並落實我們已經制定的大型行動。

I'll now hand it over to Julie to discuss our detailed financial results.

現在我將把它交給朱莉討論我們詳細的財務結果。

Thanks, Bill. Turning to Slide 10, you see our consolidated results for the first quarter of 2023. As a reminder, all of our first quarter financial results include Australasia as the announced sale with the subsequent event to the quarter end. We delivered both sales and earnings that were ahead of our internal expectations, mostly driven by volume and price cost results that were better than our original outlook.

謝謝，比爾。轉向幻燈片 10，您可以看到我們 2023 年第一季度的綜合業績。提醒一下，我們所有第一季度的財務業績都包括澳大利亞作為宣布的銷售以及截至季度末的後續活動。我們的銷售額和收益都超出了我們的內部預期，這主要是由於銷量和價格成本結果好於我們最初的預期。

More specifically, market conditions in North America benefited our top and bottom line results, while lower cost inflation in Europe was a tailwind for earnings. Our first quarter revenue was approximately $1.2 billion, up 4.4% from year ago levels. Our core revenue growth was a solid 7%, while foreign exchange translation had an adverse top line impact of 3%. I'll provide additional comments about our first quarter sales versus the prior year when I cover the next slide.

更具體地說，北美的市場狀況有利於我們的頂線和底線業績，而歐洲較低的成本通脹是盈利的推動力。我們第一季度的收入約為 12 億美元，比去年同期增長 4.4%。我們的核心收入穩定增長 7%，而外匯換算對營收產生了 3% 的不利影響。當我介紹下一張幻燈片時，我將提供有關第一季度銷售額與上一年相比的更多評論。

Our adjusted EBITDA was approximately $94 million in the quarter, leading to an adjusted EBITDA margin of 7.7%. With our margin improvement year-over-year and sequentially, we view this as a validation of our near-term cost reduction activities. In a few minutes, I'll provide more color about the drivers of our year-over-year EBITDA improvement.

本季度調整後 EBITDA 約為 9400 萬美元，調整後 EBITDA 利潤率為 7.7%。隨著我們的利潤率同比和連續增長，我們認為這是對我們近期成本削減活動的驗證。幾分鐘後，我將提供更多有關 EBITDA 逐年改善的驅動因素的信息。

On Slide 11, you see that our increased first quarter revenue was driven by higher selling prices that added 10% to sales year-over-year, which primarily reflects our price increases in the second half of 2022 to offset cost inflation. Our volume mix declined by 3% with a further negative 3% impact from foreign exchange translation. You'll find a first quarter revenue walk, including segment details in the appendix of our earnings presentation.

在幻燈片 11 中，您可以看到我們第一季度收入的增長是由銷售價格上漲推動的，銷售價格同比增長了 10%，這主要反映了我們在 2022 年下半年為抵消成本通脹而提高的價格。我們的銷量組合下降了 3%，外匯折算進一步帶來了 3% 的負面影響。您將在我們的收益演示文稿的附錄中找到第一季度的收入情況，包括細分市場的詳細信息。

On Slide 12, we have added a new adjusted EBITDA bridge to improve transparency for our investors. Year-over-year, our adjusted EBITDA improved by approximately $14 million, driven by positive price cost and productivity gains that were partially offset by reduced volume mix and headwinds from nonrecurring other income and realized foreign exchange gains.

在幻燈片 12 上，我們添加了新的調整後 EBITDA 橋，以提高投資者的透明度。與去年同期相比，我們的調整後 EBITDA 提高了約 1400 萬美元，這主要是由於積極的價格成本和生產率的提高，但銷量組合的減少以及非經常性其他收入和已實現的外匯收益帶來的不利因素部分抵消了這些提高。

As inflation continues to be a major topic, I want to give you more detail on what we have experienced. During the first quarter of this year, we recognized an increase of approximately $70 million in total cost inflation compared to the prior year period. Of this, approximately 85% was driven by raw materials, energy and freight costs with the remainder driven by labor. While our total material and labor inflation were in line with our expectations, we experienced lower inflation rates in energy, mostly in Europe and in outbound freight in North America.

由於通貨膨脹仍然是一個主要話題，我想向您提供更多關於我們所經歷的細節。今年第一季度，我們發現總成本通脹比去年同期增加了約 7000 萬美元。其中，約 85% 是由原材料、能源和貨運成本驅動的，其餘是由勞動力驅動的。雖然我們的總體材料和勞動力通脹符合我們的預期，但能源通脹率較低，主要是在歐洲，以及北美的出境貨運。

Moving to our segment results on Slide 13. In the first quarter, our North America segment generated $768 million of sales, up 6% from year ago levels. Additionally, the segment had adjusted EBITDA of $79 million, up 18% year-over-year, while margins increased a solid 100 basis points to 10.3% driven by positive price/cost results.

轉到幻燈片 13 上我們的部門業績。第一季度，我們的北美部門實現了 7.68 億美元的銷售額，比去年同期增長 6%。此外，該部門調整後的 EBITDA 為 7900 萬美元，同比增長 18%，而在積極的價格/成本結果的推動下，利潤率穩步增長 100 個基點，達到 10.3%。

While demand was down year-over-year, first quarter market conditions were better than expected and our sales mix improved year-over-year, all of which supported North America's top and bottom line results.

儘管需求同比下降，但第一季度的市場狀況好於預期，而且我們的銷售組合同比有所改善，所有這些都支撐了北美的營收和利潤業績。

Specifically, interior doors, wood windows, VPI and LaCantina performed well, as did our Canadian business. Meanwhile, we experienced some softness in the vinyl window market, and weather negatively impacted the West Coast market.

具體來說，室內門、木窗、VPI 和 LaCantina 表現良好，我們的加拿大業務也是如此。與此同時，我們經歷了乙烯基窗戶市場的一些疲軟，天氣對西海岸市場產生了負面影響。

We've delivered a number of operational efficiency improvements in North America. Examples include being more proactive with flexing our operations to meet demand to implementing standardized and data-driven processes to reduce inventory levels. These improvements positively affected first quarter results driving both improved cash flow from inventory reduction and an 8% year-over-year improvement in units per labor hour.

我們在北美實現了多項運營效率改進。例如，更加主動地靈活運營以滿足需求，實施標準化和數據驅動的流程以降低庫存水平。這些改進對第一季度業績產生了積極影響，推動庫存減少帶來的現金流改善以及每工時單位數同比提高 8%。

Europe generated $312 million in revenue and $18 million in adjusted EBITDA. Adjusted EBITDA was 20% higher year-over-year, leading to 110 basis points of EBITDA margin improvement due to positive price cost and productivity gains. Core revenues increased in the quarter driven by higher price realization of 10%, partially offset by lower volume mix of 7%. And in addition, Europe had a negative top line impact of 6% from foreign exchange translation.

歐洲產生了 3.12 億美元的收入和 1800 萬美元的調整後 EBITDA。調整後 EBITDA 同比增長 20%，由於積極的價格成本和生產率提高，EBITDA 利潤率提高了 110 個基點。本季度核心收入因價格實現增長 10% 而增長，部分被銷量下降 7% 所抵消。此外，外匯換算對歐洲的營收產生了 6% 的負面影響。

During the quarter, Europe continued to suffer from weak macroeconomic conditions across most of the region. New residential construction rates are down 15% to 30% depending on the country. However, we have had opportunities to capture market share as certain suppliers in the region have struggled to serve customers. And in addition, despite the headwind from lower volumes, Europe delivered improved productivity from operational excellence initiatives focused on both labor and material savings.

本季度，歐洲大部分地區的宏觀經濟狀況繼續疲軟。新住宅建設率下降 15% 至 30%，具體取決於國家/地區。然而，由於該地區的某些供應商難以為客戶提供服務，我們有機會佔領市場份額。此外，儘管銷量下降帶來了阻力，但歐洲通過注重節省勞動力和材料的卓越運營舉措提高了生產率。

Australasia had solid first quarter results reporting revenue of $142 million and adjusted EBITDA of $13 million with margins at 8.9%. As a result of the announced sale of our Australasia business, this segment will move to discontinued operations, and this will be the final quarter we break out its segment detail within our continuing operations.

澳大利亞第一季度業績穩健，收入為 1.42 億美元，調整後 EBITDA 為 1,300 萬美元，利潤率為 8.9%。由於宣佈出售我們的澳大利亞業務，該部門將轉為非持續經營業務，這將是我們在持續經營業務中細分其部門詳細信息的最後一個季度。

Now turning to the market outlook on Slide 14. We've updated our outlook to exclude Australasia, but it is very similar to what we expected at the beginning of this year. In North America, higher interest rates continue to impact single-family starts and permits, and we expect new construction declines of 15% to 20% year-over-year as well as a decline in repair and remodel activity at a mid- to high single-digit rate. All of this combines for an expected low double-digit reduction in volume for our North America business consistent with the outlook we discussed in February.

現在轉向幻燈片 14 上的市場前景。我們更新了前景，將澳大利亞排除在外，但這與我們今年年初的預期非常相似。在北美，較高的利率繼續影響單戶住宅的開工和許可，我們預計新建建築同比下降 15% 至 20%，維修和改造活動也將出現中高水平的下降個位數的比率。所有這些結合在一起，預計我們北美業務的銷量將出現兩位數的低位減少，這與我們在 2 月份討論的前景一致。

In Europe, which is also consistent with our previous outlook, we anticipate that demand will be down by high single digits as the market remains soft due to the region's ongoing macroeconomic challenges. On the residential side, we see declines of 15% to 30% in new residential construction depending on the country.

在歐洲，這也與我們之前的預測一致，我們預計需求將出現高個位數下降，因為該地區持續的宏觀經濟挑戰導致市場依然疲軟。在住宅方面，我們看到新住宅建設下降了 15% 至 30%，具體取決於國家/地區。

Commercial construction is expected to be flat in the near term. Construction on current projects has continued, but there is evidence that new commercial projects are being delayed or put on hold in a number of markets, which may impact demand in the medium term.

商業建築預計短期內將持平。現有項目的建設仍在繼續，但有證據表明，許多市場的新商業項目正在推遲或擱置，這可能會影響中期需求。

On Slide 15, we provide our updated full year 2023 outlook for sales and adjusted EBITDA. Our updated outlook accounts for our stronger-than-anticipated first quarter results and ongoing cost reduction activities while also removing the Australasia segment from our continuing operations. We've included a slide in the appendix of our earnings presentation that shows how the Australasia divestiture impacts our guidance change.

在幻燈片 15 中，我們提供了最新的 2023 年全年銷售展望和調整後 EBITDA。我們更新的前景說明了我們強於預期的第一季度業績和持續的成本削減活動，同時也將澳大利亞業務從我們的持續運營中刪除。我們在收益報告的附錄中添加了一張幻燈片，展示了澳大利亞資產剝離如何影響我們的指導變化。

When we gave our original outlook in February, we were prudently cautious and we remain so given the continued uncertainty in the operating environment. We now expect full year 2023 revenues to be between $4 billion and $4.4 billion, and full year adjusted EBITDA to be between $330 million and $370 million. After removing Australasia from continuing operations, we are raising the midpoint of our adjusted EBITDA guidance by $30 million.

當我們在 2 月份給出最初的展望時，我們持審慎謹慎的態度，並且考慮到經營環境的持續不確定性，我們仍然保持這種態度。我們現在預計 2023 年全年收入將在 40 億美元至 44 億美元之間，全年調整後 EBITDA 將在 3.3 億美元至 3.7 億美元之間。將澳大利亞從持續運營中剔除後，我們將調整後 EBITDA 指導的中點提高了 3000 萬美元。

Now turning to Slide 16. You can see how our first quarter results combined with our outlook for the remainder of this year to result in our updated 2023 full year guidance, again, reflecting our Australasia segment as a discontinued operation.

現在轉向幻燈片 16。您可以看到我們第一季度的業績如何與今年剩餘時間的展望相結合，從而得出我們更新的 2023 年全年指引，再次反映我們的澳大利亞業務已停止運營。

As I've described in my comments this morning, our first quarter volume mix and price costs were better than our expectations. However, we do remain comfortable with our original outlook for the balance of this year based on what we know today. Our updated sales guidance reflects our expectation that core revenue is down 4% to 8%, driven by the low double-digit reduction in demand that I've described, partially offset by carryforward price realization.

正如我今天早上在評論中所描述的，我們第一季度的銷量組合和價格成本好於我們的預期。然而，根據我們今天所了解的情況，我們對今年剩餘時間的最初展望仍然感到滿意。我們更新的銷售指引反映了我們的預期，即核心收入下降 4% 至 8%，這是由我所描述的需求低兩位數減少推動的，部分被結轉價格實現所抵消。

Our revised EBITDA guidance reflects the impact from lower volume mix, which drops through at a 25% to 30% decremental margin. Most of this earnings headwind is expected to be offset by both new and ongoing productivity and cost savings actions as well as slightly improved price cost results versus our original guidance. Due to the strong EBITDA in the first quarter and excluding Australasia, we now anticipate first half and second half EBITDA to be split roughly equally.

我們修訂後的 EBITDA 指引反映了銷量組合下降的影響，其利潤率下降了 25% 至 30%。大部分盈利逆風預計將被新的和持續的生產力和成本節約行動以及價格成本結果與我們最初的指導相比略有改善所抵消。由於第一季度 EBITDA 強勁且不包括澳大利亞，我們現在預計上半年和下半年 EBITDA 將大致平分。

Now shifting to cash flow. We remain keenly focused on improving our cash flow generation over our 2022 results. In addition to generating high-quality earnings, each segment continues to actively work on its action plan focused on reducing our net working capital by at least $100 million, with more than half of this coming from inventory reduction.

現在轉向現金流。我們仍然熱衷於改善 2022 年業績的現金流產生。除了產生高質量的收益外，每個部門還繼續積極制定行動計劃，重點是減少至少 1 億美元的淨營運資本，其中一半以上來自庫存減少。

I'll now turn it over to James to move to Q&A.

現在我將把它交給詹姆斯來進行問答。

Thanks, Julie. Operator, we are now ready to begin Q&A.

謝謝，朱莉。接線員，我們現在準備開始問答。

(Operator Instructions) And our first question comes from the line of John Lovallo with UBS.

（操作員說明）我們的第一個問題來自 UBS 的 John Lovallo。

First one is how should we think about the cadence of the cost savings realizations from the $100 million of programs that you put in place? So sort of the timing of the realization there. And also, it appears that $50 million was attributable to the first bucket. Just curious how the second 2 buckets were split out.

第一個是我們應該如何考慮您實施的 1 億美元計劃實現成本節約的節奏？這就是實現的時機。而且，第一個桶似乎有 5000 萬美元。只是好奇後兩個桶是如何分開的。

Yes. So John, thanks. Julie can go into some of the details. As we talked in the Q4 call, this is obviously a combination of what we started last year, which is rolling forward into 2023, but also additional measures.

是的。約翰，謝謝。朱莉可以詳細說明一些細節。正如我們在第四季度電話會議中所說，這顯然是我們去年開始採取的措施（將延續到 2023 年）的結合，同時也是其他措施的結合。

We gave a couple of examples today in the prepared remarks. The Atlanta closure, some of the things we're doing around managed transportation and our freight systems in North America. So those are things, obviously, that are being realized as we speak and will have an impact in the year. Julie can talk through kind of some of the buckets and more of the detail on that.

我們今天在準備好的發言中舉了幾個例子。亞特蘭大關閉，我們圍繞北美的管理運輸和貨運系統所做的一些事情。顯然，這些事情在我們講話時正在實現，並將在今年產生影響。朱莉可以談論一些桶以及更多細節。

Yes, sure. Yes. Well, I guess, back to the first part of your question, as far as the phasing, I'd say that we're probably like 40-60 between first half and second half of the $100 million. So we're delivering roughly $20 million a quarter Q1 and Q2. And then that leaves again roughly 60% in the second half of the year.

是的，當然。是的。好吧，我想，回到你問題的第一部分，就分階段而言，我想說，在 1 億美元的上半年和下半年之間，我們可能會花費 40-60 美元。因此，我們第一季度和第二季度每個季度交付大約 2000 萬美元。然後下半年又剩下大約 60%。

And then when it comes to -- I think if you're looking at Slide 7, the 3 boxes there. I'd probably say it's 70-30 when it comes to improving operating efficiency, and that's both lower cost of goods sold as well as lower SG&A kind of from an expense perspective, and that leaves again in that optimizing the network between wrapping up the year-over-year benefits from the site closures of last year and then things we've already announced this year and things we're continuing to evaluate a potentially action in the second half of this year. All of that work -- that network footprint is roughly again, I'd say, around 30% of the reductions.

然後說到——我想如果你正在看幻燈片 7，那裡有 3 個盒子。我可能會說，當談到提高運營效率時，這是 70-30，從費用角度來看，這既降低了銷售商品的成本，也降低了 SG&A，這再次導致了優化網絡之間的關係。同比受益於去年的網站關閉，以及我們今年已經宣布的事情以及我們將繼續評估今年下半年可能採取的行動。所有這些工作——我想說，網絡足跡大約又減少了 30% 左右。

Okay. That's helpful. And then as you guys talked about new construction in the U.S. has held up better than the period, which should benefit you guys given your exposure there. What's your latest kind of what you're hearing from your builder customers in North America? And then quickly on Europe, curious how you're thinking about the consumer there? I mean, could there actually be a benefit to consumer spending given declining energy costs and still pretty good wage growth there? So just curious about those 2 markets and how you're thinking about the consumer?

好的。這很有幫助。然後，正如你們談論的那樣，美國的新建築比同期的情況更好，考慮到你們在那裡的曝光度，這應該對你們有利。您從北美建築商客戶那裡聽到的最新消息是什麼？然後很快就談到了歐洲，好奇你如何看待那裡的消費者？我的意思是，考慮到能源成本下降和工資增長仍然相當不錯，消費者支出實際上是否會受益？那麼只是對這兩個市場以及您如何看待消費者感到好奇？

Yes, John. So it's -- obviously, it's a very mixed picture. I'd say builders in North America, you see different views. I was recently in the Southeast. There's strong demand expected through the building cycle. So I'd say the typical summer build and starts are progressing as expected, but there's obviously a geographic benefit to that region of North America.

是的，約翰。所以很明顯，這是一個非常複雜的情況。我想說的是北美的建築商，你會看到不同的觀點。我最近在東南部。預計整個建設週期都會有強勁的需求。因此，我想說，典型的夏季建設和開工正在按預期進行，但北美該地區顯然有地理優勢。

Just when we look at it from a broader standpoint, there's still caution around for a couple of reasons. Number one, inflation is an issue and also affordability of homes is an issue. Just in general, we have higher interest rates, which are clearly creating more reflection on people when they start thinking about purchasing homes, and that adds to the affordability challenge.

當我們從更廣泛的角度來看待它時，出於幾個原因仍然存在謹慎態度。第一，通貨膨脹是一個問題，住房的承受能力也是一個問題。總的來說，我們的利率較高，這顯然讓人們在開始考慮購買房屋時產生更多的反思，這增加了負擔能力的挑戰。

And the third point is that there's, I think, mixed views on how long rates will stay where they are, and kind of the runway rolling forward is one of the things that we see creating some pretty significant views on how things will play out in the back half of the year in this market in North America. So it's very mixed. There's not one clear view. We remain very cautious. 15% to 20% down is what our view is, and that hasn't changed since the beginning of the year.

第三點是，我認為，對於利率將保持在多長時間的水平，人們的看法不一，而跑道的滾動是我們看到的對事情將如何發展產生一些非常重要的看法的事情之一。今年下半年北美市場。所以這是非常複雜的。沒有一個清晰的觀點。我們仍然非常謹慎。我們的觀點是下降 15% 到 20%，而且自今年年初以來這一點沒有改變。

Europe is different. So there is still a risk that interest rates can and will go higher in Europe. There is still significant inflation. If you just think about labor inflation or inflation in certain Eastern European countries, which are delivering a lot of the products into the building product sector, that's double digit and has been there for a period of time. So we see starts in Northern Europe down as much as 30% or 40%. So some markets are really in pretty bad shape.

歐洲則不同。因此，歐洲的利率仍然存在可能而且將會走高的風險。通貨膨脹仍然嚴重。如果你只考慮勞動力通貨膨脹或某些東歐國家的通貨膨脹，這些國家向建築產品行業提供大量產品，那麼通貨膨脹率是兩位數，並且已經存在了一段時間。因此，我們看到北歐的開工率下降了 30% 或 40%。所以有些市場的狀況確實很糟糕。

I think it's going to take a while for the consumer to really take a step back and figure out when will the turbulence in Europe decline. There's unfortunately no end in sight to the conflict in Ukraine. Energy costs and headwinds are softer than expected, which is good news. However, we need to remember Russia shut gas off last year in the summer, and this is now when the European Union needs to start reloading the reserves. So there's also an additional potential threat on energy that the gas reserves and the reload needs to be progressing as expected. So there's still a lot of uncertainty. And I think the general sentiment that we're seeing in Europe is people are cautious and waiting.

我認為消費者需要一段時間才能真正退後一步，弄清楚歐洲的動盪何時會減弱。不幸的是，烏克蘭衝突還看不到結束的跡象。能源成本和不利因素比預期溫和，這是個好消息。然而，我們需要記住，俄羅斯去年夏天關閉了天然氣，而現在正是歐盟需要開始重新加載儲備的時候。因此，能源還存在一個額外的潛在威脅，即天然氣儲備和重新裝載需要按預期進行。所以仍然存在很大的不確定性。我認為我們在歐洲看到的普遍情緒是人們持謹慎態度並等待。

The good news is that commercial projects, as Julie noted, are still being finished because there's a pretty long gestation period. But the new projects are fewer, and the pricing activity around acquiring those projects is getting more competitive. So that's why we also remain very cautious in Europe for the back half of the year.

好消息是，正如朱莉指出的那樣，商業項目仍在完成，因為醞釀期相當長。但新項目越來越少，圍繞收購這些項目的定價活動也變得越來越有競爭力。這就是為什麼我們今年下半年對歐洲也保持非常謹慎的態度。

And the next question comes from the line of Susan Maklari with Goldman Sachs.

下一個問題來自高盛的 Susan Maklari。

This is Charles Perron in for Susan today. First, you maintained your volume mix guide for North America and Europe unchanged despite the better-than-expected first quarter volume versus what our expectations were. Have you seen any change maybe that leads you to be more cautious on the balance of this year? Or is it more conservative given like, obviously, the uncertainty out there in the market?

我是查爾斯·佩倫，今天代替蘇珊。首先，儘管第一季度銷量好於我們的預期，但你們維持北美和歐洲的銷量組合指南不變。您是否看到任何可能導致您對今年剩餘時間更加謹慎的變化？或者考慮到市場的不確定性，它是否更加保守？

Yes. So what I just said, based on John's question, I think kind of rolls into this question, where we are seeing some additional cloud on the horizon is in R&R in North America. Typically, summer is the building season, especially when we're looking at retail sellout and R&R volumes. And clearly, we're seeing limited destocking. We would actually expect loading of inventory in the channel at this point in time during the kind of preloading for the summer build, and we're not seeing that yet.

是的。所以我剛才所說的，基於約翰的問題，我認為有點涉及到這個問題，我們看到北美的 R&R 即將出現一些額外的雲。通常，夏季是建築季節，尤其是當我們考慮零售銷售量和 R&R 量時。顯然，我們看到庫存的去化有限。實際上，我們預計在夏季構建的預加載過程中，此時會在渠道中加載庫存，但我們還沒有看到這一點。

And we're seeing, obviously, retail partners that remain pretty cautious. There's a lot of signals out there, spend rates, savings, credit card bills, et cetera, that would lead us to believe that it's still going to be a pretty challenging R&R environment. So we feel that our expectations of kind of down mid- to high single digit is very reasonable, and we're seeing additional signals that would support that. So that's why we remain cautious in our expectation for the next, I'd say, 2.5 quarters of this year.

顯然，我們看到零售合作夥伴仍然非常謹慎。有很多信號，支出率、儲蓄、信用卡賬單等等，這會讓我們相信這仍然是一個相當具有挑戰性的 R&R 環境。因此，我們認為我們對中高個位數的預期是非常合理的，並且我們看到了支持這一點的其他信號。因此，我們對今年接下來的 2.5 個季度的預期保持謹慎。

Bill, and then following up on this R&R point that you just mentioned. Have you noticed any change in the tone from the channel partner about the stress in the banking system over the last month? And also the access for financing for windows and door projects, how important is this for basically for your end market? And do you have a sense of how much your end market products sold are financed versus paid cash more specifically?

Bill，然後跟進您剛才提到的 R&R 點。您注意到上個月渠道合作夥伴關於銀行系統壓力的語氣有什麼變化嗎？還有門窗項目的融資渠道，這對於您的終端市場來說有多重要？您是否了解您銷售的終端市場產品有多少是融資的，具體而言是支付現金的？

So maybe on the last point, I don't know. There's too many layers between us and the installs to really understand what's the financing mix of cash versus kind of a debt financing or mortgage. And it's hard for us to predict. Has the banking turbulence kind of rolled over into the retail space, I think you guys are probably closer to that from a macro view than we are. So I wouldn't want to comment on that.

所以也許最後一點我不知道。我們和安裝之間有太多的層次，無法真正理解現金融資與債務融資或抵押貸款的融資組合。我們很難預測。銀行業動盪是否已蔓延到零售領域，我認為從宏觀角度來看，你們可能比我們更接近這一點。所以我不想對此發表評論。

I'd just say that retail partners are cautious. And typically, summer is a build season. We're not seeing that. And I think that ties into the macro environment. Interest rates are high. They're going to stay sticky for a while. Inflation is still a challenge. Affordability is an issue. So we don't see any direct impact or correlation currently.

我只想說零售合作夥伴持謹慎態度。通常，夏季是建造季節。我們沒有看到這一點。我認為這與宏觀環境有關。利率很高。他們會保持粘性一段時間。通貨膨脹仍然是一個挑戰。負擔能力是一個問題。因此，我們目前沒有看到任何直接影響或相關性。

The next question comes from the line of Matthew Bouley with Barclays.

下一個問題來自馬修·布利 (Matthew Bouley) 與巴克萊銀行 (Barclays) 的對話。

North America, the volume mix down 3% in Q1. I just wanted to get a better sense of -- it's obviously a difficult operating environment out there. And so that as we just spoke about. It was a better result than I think most of us expected. And the genesis of my question is, what did drive that because we're trying to figure out as we go forward, what could be the potential upside or downside as we kind of build out the model through the year?

北美第一季度銷量下降 3%。我只是想更好地了解——這顯然是一個困難的操作環境。正如我們剛才談到的。這是一個比我們大多數人預期的更好的結果。我的問題的根源是，是什麼推動了這一點，因為我們正在努力弄清楚，當我們在這一年中構建模型時，潛在的上行或下行可能是什麼？

Matthew, I'll start and then Bill can add some color. I mentioned in my comments already this morning that North America did have a positive impact from sales mix. And so when we look at their true volume decline, it was more in that like 6% to 7% down, which was still below our expectations for the quarter. But they were positively impacted by, call it, 2%, 3% from mix.

馬修，我先開始，然後比爾可以添加一些顏色。我今天早上在評論中提到，北美確實對銷售組合產生了積極影響。因此，當我們查看其真實銷量下降情況時，更多的是下降了 6% 到 7%，這仍然低於我們對該季度的預期。但他們受到了 2%、3% 混合的積極影響。

I mentioned in my comments, wood windows, VPI, LaCantina, some of our stronger performing products and lines had a pretty strong quarter in Q1, a little bit better than expectations. And so I think when you dig a little deeper, you do see that when we look at unit volumes and just volume dollars they were down kind of in that, call it, mid- to upper single-digit range, but positively impacted by mix to get us down to that net 3%.

我在評論中提到，木窗、VPI、LaCantina，我們一些表現較強的產品和產品線在第一季度的季度表現相當強勁，比預期好一點。因此，我認為，當您深入挖掘時，您確實會發現，當我們查看單位銷量和銷量美元時，它們有所下降，可以稱之為中上個位數範圍，但受到混合的積極影響讓我們把這個淨值降到 3%。

And Matt, let me just maybe add something in more on a broader level on what we're really trying to achieve here. We've talked a number of times about pushing down responsibility and authority into lines of business. So John Krause and his team in North America, Nigel Dilks and his team in Europe are really starting to get a couple of layers down into the organization, and we're identifying pockets and areas where our performance is actually strong.

馬特，讓我在更廣泛的層面上添加一些關於我們真正想要實現的目標的內容。我們多次討論過將責任和權力下放到業務部門。因此，約翰·克勞斯 (John Krause) 和他在北美的團隊、奈傑爾·迪爾克斯 (Nigel Dilks) 和他在歐洲的團隊確實開始深入了解組織的各個層面，我們正在確定我們績效實際上強勁的領域和領域。

But we're also seeing areas where we think we're maybe not at a level of competitiveness that we require. And so currently, we're saying, all right, how do we strengthen the areas that we're doing well? To Julie's point, wood windows is something where we have, I think, pretty appealing lead times right now. And some of the other players in the market are struggling. And this is an area where we know how to make wood windows exceptionally well, and we're good at it. So we really want to force those things. So this is some of the things that are getting lower into the organization, gives us the ability to really start identifying with our teams in the different regions, what they really want to focus on and how we can drive that profitable growth and not just push everything out the door.

但我們也發現，在一些領域，我們認為我們的競爭力可能達不到我們所需要的水平。因此，目前我們要說的是，我們如何加強我們做得好的領域？就朱莉的觀點而言，我認為，木窗目前的交貨時間非常有吸引力。市場上的其他一些參與者正在苦苦掙扎。在這個領域，我們非常了解如何製造木窗，而且我們很擅長。所以我們真的想強迫這些事情。因此，這是組織中越來越深入的一些事情，使我們能夠真正開始了解不同地區的團隊，他們真正想要關注的是什麼，以及我們如何推動盈利增長，而不僅僅是推動一切都在門外。

Got it. All right. Very helpful. Second one, the price -- the majority of that was the result of carryover from actions taken in the second half of '22. I'm curious additional pricing taken perhaps at the beginning of this year and sort of how we should think about pricing flowing through the model over the next 3 quarters?

知道了。好的。很有幫助。第二個是價格——其中大部分是 22 年下半年採取的行動帶來的結果。我很好奇可能在今年年初採取的額外定價，以及我們應該如何考慮未來 3 個季度通過該模型的定價？

Matt, you dropped at the beginning of your question. Can you just repeat that for us, just so we're clear specific to what you're asking.

馬特，你在問題一開始就放棄了。您能否為我們重複一遍，以便我們清楚地了解您的要求。

Yes. Sorry about that. So the price spend, I'm curious if there was additional pricing taken at the beginning of this year. I know you said most of it was from '22. And then how do we think about pricing over the balance of the year? .

是的。對於那個很抱歉。所以價格支出，我很好奇今年年初是否有額外的定價。我知道你說過大部分都是 22 年的。那麼我們如何考慮今年剩餘時間的定價？ 。

Yes. So it was carryover from '22 into '23, as we had signaled and anticipated in our Q4 call, if you remember. The second thing what we're doing is we're starting to look on the commercial excellence side in more details at specific countries, specific segments, just to make sure that we feel we're in the right position, number one, with the data and the visibility, but number two, with the pricing actions.

是的。所以這是從 22 年延續到 23 年，正如我們在第四季度電話會議中所暗示和預期的那樣，如果你還記得的話。我們正在做的第二件事是，我們開始在特定國家、特定細分市場更詳細地關注商業卓越方面，只是為了確保我們覺得我們處於正確的位置，第一，數據和可見性，但第二位是定價行為。

But there is very limited new price. Almost all of what's dropped in Q1 was carried through from 2022 pricing actions. And obviously, we're starting to get into the quarters where we're going to have pretty tough comps on the pricing side. So that's also something you need to kind of think through when we're looking at the back half of the year.

但新的價格非常有限。第一季度的幾乎所有下降都是 2022 年定價行動的結果。顯然，我們開始進入定價方面的競爭非常激烈的季度。因此，當我們展望今年下半年時，這也是您需要考慮的事情。

And the next question comes from the line of Steven Ramsey with Thompson Research Group.

下一個問題來自湯普森研究小組的史蒂文拉姆齊。

Maybe you talked about in the past couple of quarters, portfolio pruning. Clearly, Australasia, a big move. And you had talked about some moves taken in the Europe segment. Can you talk about the benefits you've seen from pruning so far and how that builds into the second half?

也許您在過去幾個季度談到了投資組合修剪。顯然，澳大利亞是一個大動作。您談到了歐洲市場採取的一些舉措。您能談談到目前為止您從修剪中看到的好處以及下半年的好處嗎？

Yes. So obviously, with the Australasia strategic review, there was a couple of things that we wanted to achieve with that divestment. Number one was we wanted to make sure we have the right partner to continue the strong growth and really support the carve-out. So we wanted to have a partner who has done it and understands that, which we feel we found in Platinum Equity.

是的。顯然，通過澳大利亞戰略審查，我們希望通過撤資實現一些目標。第一，我們希望確保擁有合適的合作夥伴來繼續強勁增長並真正支持分拆。因此，我們希望有一個已經做到這一點並理解這一點的合作夥伴，我們認為我們在 Platinum Equity 中找到了這一點。

Number two, we wanted to delever and strengthen our balance sheet, which I think we will achieve once we close the transaction in the back half of this year or so in Q3. And the third point, obviously, we want to focus on our core regions. So that's North America and Europe, and there's a lot of opportunity to do things differently and better, we believe, in those 2 remaining regions.

第二，我們希望去槓桿化並加強我們的資產負債表，我認為一旦我們在今年下半年或第三季度完成交易，我們就能實現這一目標。第三點，顯然，我們希望專注於我們的核心區域。這就是北美和歐洲，我們相信，在這兩個剩餘地區，有很多機會以不同的方式做更好的事情。

So some of the things that we're already doing, and I'd say in a smaller dimension, we talked last year about closing some sites in Melton, U.K., which were window related, big drag to earnings. So those are closed and concluded. We're closing our Atlanta -- or we're in the process now of closing our Atlanta facility. That will have an impact. So some of the broader footprint actions that we're taking are going to help us strengthen the foundation. And we're more focused now on kind of the road ahead and how do we make sure that we have the right asset base with the right levels of investment to serve our customers.

因此，我們已經在做的一些事情，我想說的是，在較小的層面上，我們去年談到了關閉英國梅爾頓的一些工廠，這些工廠與窗戶相關，對盈利造成很大拖累。所以這些都結束了。我們正在關閉我們的亞特蘭大工廠——或者說我們現在正在關閉我們的亞特蘭大工廠。這將會產生影響。因此，我們正在採取的一些更廣泛的足跡行動將幫助我們鞏固基礎。我們現在更關注未來的道路，以及如何確保我們擁有適當的資產基礎和適當的投資水平來服務我們的客戶。

And I said before, we're really pushing down into the line of business logic to make sure that the owners of these areas of the business, together with John in North America, Nigel in Europe, are letting us know what do they want to do to improve? Because clearly, we need to improve. We need to make sure also that we have capital available to fund those improvement projects. And so that's going to be a key focus for us in addition to delevering our balance sheet.

我之前說過，我們確實正在深入推進業務邏輯，以確保這些業務領域的所有者，以及北美的約翰和歐洲的奈傑爾，讓我們知道他們想要什麼怎樣做才能改進？因為很明顯，我們需要改進。我們還需要確保有足夠的資金來資助這些改進項目。因此，除了去槓桿化資產負債表之外，這將成為我們的重點關注點。

We're going to want to make sure that the free cash flow that we're generating, we're going to be able to invest in what are pretty attractive return profile projects this year, but also next.

我們希望確保我們產生的自由現金流能夠投資於今年和明年回報率相當有吸引力的項目。

Okay. Helpful. And then thinking about the guidance and how North America channel inventory effects that you talked about the lack of retail stocking thus far. Is that embedded in the guidance already that they do not restock? Or is there some rebuild of inventory in the retail channel. And similar, curious to hear how you think about distribution inventory. Will that channel run like through the year? Do you think they start to restock at some point to a greater degree?

好的。有幫助。然後考慮指導以及北美如何引導庫存影響，您談到了迄今為止零售庫存的缺乏。他們不補貨的指導方針中是否已經包含了這一點？或者零售渠道是否有一些庫存重建。類似地，很想听聽您如何看待分銷庫存。該頻道會像全年一樣運行嗎？您認為他們會在某個時候開始更大程度地補充庫存嗎？

So it's all baked in is the short answer. The longer answer is, clearly, we remain cautious. There's a lot of uncertainty. We've gone through it in a number of different topics today, whether it be Europe or North America. Clearly, we're watching and monitoring the R&R channel closely, but the expectations of this kind of mid- to high single-digit down. That is baked into the guidance that we've shared with you last night.

所以，簡短的回答是，一切都已經解決了。更長的答案顯然是，我們仍然保持謹慎。有很多不確定性。今天我們已經討論了許多不同的主題，無論是歐洲還是北美。顯然，我們正在密切關注 R&R 渠道，但對這種中高個位數的預期下降。這已納入我們昨晚與您分享的指南中。

So we're effectively focused on really controlling what we can control, and I feel we're doing a pretty good job coming off of Q1. Regarding distribution inventory, we're not expecting any significant changes and feel that it would be kind of matched to what our expectations are for volume down in the back half of the year. Of course, we have our homework to do, and we are balancing, obviously, labor loads in factories depending on where we see kind of stronger demand or weaker demand. So John, in North America and Nigel in Europe are doing a good job of kind of balancing cost to the market reality, which remains quite volatile.

因此，我們有效地專注於真正控制我們可以控制的事情，我覺得我們在第一季度做得非常好。關於分銷庫存，我們預計不會出現任何重大變化，並認為這與我們對今年下半年銷量下降的預期相符。當然，我們還有功課要做，顯然，我們正在根據需求強勁或需求疲軟的情況來平衡工廠的勞動力負荷。因此，北美的約翰和歐洲的奈傑爾在平衡成本與市場現實方面做得很好，市場現實仍然相當不穩定。

Our next question comes from the line of Michael Rehaut with JPMorgan.

我們的下一個問題來自摩根大通的 Michael Rehaut。

Congrats on the quarter. This is Andrew Azzi on for Mike. I just wanted to ask if you could provide any more details on sales trends in the quarter and maybe in April between the traditional and retail channels between your businesses and then how does that help us think about sales growth in next quarter and the back half?

恭喜本季度。我是安德魯·阿齊 (Andrew Azzi) 替邁克發言。我只是想問您是否可以提供有關本季度（也許是 4 月份）貴公司之間傳統渠道和零售渠道之間的銷售趨勢的更多詳細信息，然後這如何幫助我們考慮下季度和下半年的銷售增長？

So coming back to kind of where we're guiding. I mean, we're thinking that new construction is down 15% to 20% in North America. We were a little better than those expectations. Obviously, in Q1, for the topics that Julie has talked through on the price cost and we're controlling costs as we expected that we would during the year. So it's tough for us to make a more detailed guide on a quarterly basis just because it's a very tough environment.

那麼回到我們正在指導的地方。我的意思是，我們認為北美的新建築數量下降了 15% 至 20%。我們比那些預期要好一些。顯然，在第一季度，對於朱莉討論過的價格成本主題，我們正在像我們預期的那樣控製成本。因此，我們很難每季度製定更詳細的指南，因為這是一個非常艱難的環境。

We do see and we've shared that, that clearly, cloud on the retail R&R horizon are here. And that's something that we're watching carefully because, obviously, that will have a big impact, not just on us, but I think on the economy in general in North America, we are seeing some strong pockets of growth.

我們確實看到並分享了這一點，很明顯，零售 R&R 視野中的雲已經到來。這是我們正在仔細觀察的事情，因為顯然，這將產生巨大的影響，不僅對我們，而且我認為對北美的整體經濟，我們看到了一些強勁的增長。

We talked about wood windows. We talked about the Southeast region were clearly building continues to roll. So it's very mixed. Hard for us to kind of talk through in more detail on a quarterly basis what we see. But our volume, I mean, as we've said in the past, it's kind of mixed 50-50 between R&R and new construction. So that should give a pretty good feel on kind of where we think we'll end up at the end of the year.

我們談論了木窗。我們談到東南地區的建設顯然正在繼續推進。所以這是非常複雜的。我們很難每季度更詳細地討論我們所看到的情況。但我的意思是，正如我們過去所說，我們的數量是 R&R 和新建建築之間 50-50 的混合體。因此，這應該讓我們對今年年底的結果有一個很好的感覺。

And then could you speak a little bit to the mix shift that you're seeing? And any noticeable change between customer and stock or anything you're expecting as the year goes by?

然後你能談談你所看到的混合轉變嗎？隨著時間的推移，客戶和庫存之間有什麼明顯的變化或者您預期的任何變化嗎？

I'd say nothing significant on the mix side. The -- we have pockets of business where we're extremely happy with the way things are progressing. For example, multifamily homes, we still have a strong backlog, but I think that's a market topic, not necessarily a JELD-WEN topic. So that remains solid.

我想說在混合方面沒有什麼重要的。我們對一些業務的進展情況感到非常滿意。例如，多戶住宅，我們仍然有大量積壓，但我認為這是一個市場話題，不一定是 JELD-WEN 話題。所以這仍然是堅實的。

Within the retail side, of the world and also traditional, we're seeing pockets, as we said, wood windows continues for us to be a very promising area where our lead times are in a pretty good place compared to what we think the market reality is in Europe, it's more of a mix between residential and commercial.

在世界和傳統的零售方面，我們看到了口袋，正如我們所說，木窗對我們來說仍然是一個非常有前途的領域，與我們認為的市場相比，我們的交貨時間處於相當好的位置現實是在歐洲，它更多的是住宅和商業的混合體。

Residential is struggling significantly, as we know, to the tune of 50% down, 40%, 50% down in certain Northern European markets. Commercial is still there, and a lot of the commercial projects that were released 1 year or 2 years ago are being built out and coming to completion. We do see the pipeline tightening. So we expect that commercial also in the back half of the year will create some additional headwinds into the European market, and that's why we also feel that we need to remain cautious because there are, I'd say, more uncertainties than optimistic signals right now in general as to where the market could go.

據我們所知，住宅市場正陷入嚴重困境，某些北歐市場的房價下降了 50%、40%、50%。商業還在，很多一兩年前發布的商業項目正在建設、即將竣工。我們確實看到管道收緊。因此，我們預計今年下半年的商業化也會給歐洲市場帶來一些額外的阻力，這就是為什麼我們也認為我們需要保持謹慎，因為我想說，不確定性比樂觀信號更多。現在總體來說市場會走向何方。

And the next question comes from the line of Phil Ng with Jefferies.

下一個問題來自 Phil Ng 和 Jefferies 的對話。

Congrats on a really strong start to the year. On the price cost side, you guys did an incredible job, carries through May, have you seen any increased competition on the pricing side? You've called out certainly some uncertainty on the R&R side via retail. And then on the inflation side, Julie, you highlighted energy and at least freight in North America has been a good guy. Can you kind of size up how you're thinking about inflation, what you thought coming the year and how it's kind of shaping up relatively at this point? So any color on price cost and how things are progressing?

祝賀今年取得了非常強勁的開局。在價格成本方面，你們做了令人難以置信的工作，整個五月，您是否看到定價方面的競爭加劇？您確實通過零售指出了 R&R 方面的一些不確定性。然後在通貨膨脹方面，朱莉，你強調了北美的能源和至少貨運是個好人。您能否大致了解一下您對通脹的看法、您對今年的看法以及目前通脹的相對情況？那麼價格成本以及事情進展如何？

Yes. Let me -- Phil, I'll take the price side and maybe I'll ask Julie to jump into the inflation. So on price, so the short answer is, no. We're not seeing any significant changes to kind of our expectations and where things are tracking.

是的。讓我——菲爾，我會站在價格一邊，也許我會要求朱莉跳入通貨膨脹。那麼在價格方面，簡短的回答是，不。我們沒有看到我們的期望和事情的進展有任何重大變化。

What we do see, and I mean, I think this is normal, as the market gets tighter, the projects coming into the market are going to have a greater competitive bid pressure. So we need to be very careful that the deals that we're taking have appropriate margins. And that's one of the reasons why we're working hard on kind of strengthening our foundation to make sure our cost structure is in line, so we can be competitive and win some of the projects, but we're being selective. And coming back to wood against vinyl, we're really focusing on delivering strong value in the wood window business, and we think we have a great value proposition. And as we said, there is significant pressure on volume and price in the vinyl area. So we're really being cautious and careful as to what we're doing there. But I'll hand it over to Julie on the inflation.

我們所看到的，我的意思是，我認為這是正常的，隨著市場變得更加緊張，進入市場的項目將面臨更大的競標壓力。因此，我們需要非常小心，確保我們正在進行的交易有適當的利潤。這就是為什麼我們努力加強基礎以確保我們的成本結構符合要求的原因之一，這樣我們就可以具有競爭力並贏得一些項目，但我們是有選擇性的。回到木材與乙烯基的對比，我們真正專注於在木窗業務中提供強大的價值，並且我們認為我們擁有巨大的價值主張。正如我們所說，黑膠唱片領域的銷量和價格面臨著巨大的壓力。因此，我們對於在那裡所做的事情確實非常謹慎。但我會把通貨膨脹問題交給朱莉。

Yes, sure, Bill. Yes, I mean, it's a good news story and we highlighted this morning, especially in Europe with energy definitely being well below our initial expectations. But we were expecting inflation in the first quarter all in to be around 10%. We came in at around 8%. And that again was driven by the lower outbound freight and the lower energy noting, however, that those are relatively smaller pieces of our total inflation and spend.

是的，當然，比爾。是的，我的意思是，這是一個好消息，我們今天早上強調了這一點，特別是在歐洲，能源肯定遠低於我們最初的預期。但我們預計第一季度通脹率將在 10% 左右。我們的得分約為 8%。這又是由出境貨運量下降和能源消耗量下降推動的，但值得注意的是，這些在我們的總通脹和支出中相對較小。

But nonetheless, those 2 items kind of again brought our 10% down to 8% from an expected actual basis. So all in, I think in February, I mentioned we thought our inflation this year would be in that 8% to 10% range. And so we have dialed that back a little bit to be more like 6% to 8%. Again, mostly still driven by these trends in outbound freight and energy. Although as Bill has already talked about a lot today, still a lot of uncertainty in this macro environment and in our core regions. But nonetheless, that's where we're -- that's what we saw in Q1 and what we're looking at for the year.

但儘管如此，這兩項再次將我們的預期實際利率從 10% 降至 8%。總而言之，我想在 2 月份，我提到我們認為今年的通脹率將在 8% 到 10% 的範圍內。因此，我們將這一比例下調了一點，大約為 6% 至 8%。同樣，主要仍然受到出境貨運和能源這些趨勢的推動。儘管正如比爾今天已經談了很多，但這個宏觀環境和我們的核心區域仍然存在很多不確定性。但儘管如此，這就是我們的處境——這就是我們在第一季度看到的情況以及我們今年的預期。

And then from a capital deployment standpoint going forward, Bill, you're pretty clear that you want to get under 3x by the end of this year. When we kind of work through 2023 and beyond, what are some of the core priorities? How do you want to keep leverage going forward? And you talked about, you want to invest in what's core to you. And clearly, North America and Europe is core to you. But are there any products and areas where it's core to you and there's a void that you wanted to kind of get bigger and where you see more opportunities from a growth and return standpoint going forward?

然後，從未來資本部署的角度來看，比爾，您非常清楚，您希望在今年年底前達到 3 倍以下。當我們在 2023 年及以後開展工作時，核心優先事項是什麼？您希望如何繼續保持槓桿作用？您談到，您想投資於您的核心業務。顯然，北美和歐洲是您的核心。但是，是否有任何產品和領域是您的核心，並且存在您想要擴大的空白，並且從未來增長和回報的角度來看您看到了更多機會？

Yes. So we're thinking about capital allocation in the following way. Clearly, debt repayment is top of our list, and we've shared that view and we feel pretty solid. We can go through the math if appropriate. But we think we're going to get to around 3x by the end of the year, and we need to be below 3x, which is clearly our aspiration. Then we need to invest in ourselves, so we need to kind of balance the debt repayment versus the investment to strengthen the foundation.

是的。因此，我們正在以以下方式考慮資本配置。顯然，債務償還是我們的首要任務，我們也同意這一觀點，而且我們感覺非常堅定。如果合適的話，我們可以進行數學計算。但我們認為到今年年底我們將達到 3 倍左右，而且我們需要低於 3 倍，這顯然是我們的願望。然後我們需要對自己進行投資，因此我們需要平衡債務償還與加強基礎的投資。

Obviously, as we improve the EBITDA, the leverage ratio will decline. We're continuing to screen the market for bolt-ons. I mean we're not silent here, but we do have some homework to do on the capital structure before we get back into the market. But we are looking -- and share repurchase is clearly a lower priority for us on the list of actions when we just kind of go through available capital.

顯然，隨著我們提高 EBITDA，槓桿率將會下降。我們正在繼續篩選市場中的補強產品。我的意思是，我們在這裡並沒有保持沉默，但在重返市場之前，我們確實需要在資本結構方面做一些功課。但我們正在尋找——當我們只是用完可用資本時，股票回購顯然是我們行動清單上的一個較低優先級。

If we think about where we want to play, how we want to win, these are the discussions that we're now starting with the organization. So the first thing we're doing is we're pushing down and creating clear visibility on the lines of business. Second is that we're working together with the North American and the European team to really understand how do they see developing their portfolio. And as we know, we have a very broad portfolio. So we have a lot of fantastic opportunities. Our view clearly is that we need to pick some of those opportunities and really go at them with the appropriate resources, capital allocation and innovation pipelines.

如果我們考慮我們想要在哪裡比賽，我們想要如何獲勝，這些就是我們現在正在與組織開始的討論。因此，我們要做的第一件事就是推動業務線並建立清晰的可見性。其次，我們正在與北美和歐洲團隊合作，真正了解他們如何看待開發他們的產品組合。眾所周知，我們擁有非常廣泛的產品組合。所以我們有很多絕佳的機會。我們的觀點顯然是，我們需要選擇其中一些機會，並利用適當的資源、資本配置和創新渠道來真正抓住它們。

So that's what we're working on. It's too early to share detail and specifics. But we're seeing a lot of great things that we're doing. And our challenge as a leadership team is really going to be around the sequencing and funding to really strengthen those 2 core areas, North America and Europe, and obviously, the line of businesses in each of them.

這就是我們正在努力的方向。現在分享細節和細節還為時過早。但我們看到我們正在做很多偉大的事情。作為領導團隊，我們面臨的挑戰實際上是圍繞排序和資金，以真正加強北美和歐洲這兩個核心領域，顯然，還有每個領域的業務線。

(Operator Instructions) Our next question comes from the line of Mike Dahl with RBC Capital Markets.

（操作員說明）我們的下一個問題來自 RBC 資本市場的 Mike Dahl。

First question is still on Europe. I guess, when I take a step back and look at this, the market structure is different there. You've talked about the current pressures, the risks ahead. If I look back at the profitability over the last 5 years, it's been lagging both on kind of an absolute basis and relative even with some of the actions that you're now taking, you're looking at another restructuring here. I mean, why is this core to your business at this point? You've already jettisoned Australasia. Why not take a strategic look at Europe and say, "Hey, maybe this isn't really the right place for our capital anymore?"

第一個問題仍然是關於歐洲。我想，當我退一步看這個問題時，那裡的市場結構是不同的。您談到了當前的壓力和未來的風險。如果我回顧一下過去 5 年的盈利能力，就會發現，即使您現在正在採取一些行動，但無論是絕對基礎還是相對基礎，它都處於落後狀態，您正在考慮進行另一次重組。我的意思是，為什麼這是您目前業務的核心？你已經拋棄了澳大利亞。為什麼不從戰略角度審視歐洲並說：“嘿，也許這不再是我們首都的正確地點了？”

So thanks for the question, Mike. So clearly, we need to delever, and we need simplify and these are 2 of the key things that we've been able to achieve by signing the Australasian agreement. And we're anticipating, obviously, getting to a close. So that will be a big step forward for us.

謝謝你的提問，邁克。很明顯，我們需要去槓桿化，我們需要簡化，這是我們通過簽署澳大利亞協議能夠實現的兩件關鍵事情。顯然，我們預計即將結束。所以這對我們來說將是向前邁出的一大步。

And we don't have the 3 legs on the chair, we have 2. And both need to be strengthened. There's no question. If we look at Europe. Europe, we have some leading brands in leading markets. And we have a very strong platform. And I believe, as does our team there, we can do a lot more. So clearly, we're working now through the plans, the lift, the work streams, the cost to achieve to get ourselves into, I'd say, a level of profitability that we feel is appropriate. And clearly, with the platform and the baseline that we have, we really need to deliver first, and that's also for North America. And then we'll assess after we have kind of our plan to achieve, what we really think are the viable bigger-picture options.

我們椅子上沒有 3 條腿，我們有 2 條腿。兩者都需要加強。毫無疑問。如果我們看看歐洲。歐洲，我們在主要市場擁有一些領先品牌。我們有一個非常強大的平台。我相信，就像我們在那裡的團隊一樣，我們可以做得更多。很明顯，我們現在正在通過計劃、提升、工作流程和成本來實現，我想說，我們認為合適的盈利水平。顯然，憑藉我們擁有的平台和基線，我們確實需要首先交付，這也適用於北美。然後，在製定了要實現的計劃後，我們將評估我們真正認為可行的大局選擇。

But again, great brands in great markets and a strong portfolio of good local teams. So we're really focused on self-help and controlling what we can control. And I believe personally that we haven't done a great job of that in the past, and that's what we want to prove to the capital market that we're capable of doing and delivering.

但同樣，偉大的品牌、偉大的市場和強大的優秀本地團隊組合。所以我們真正專注於自助和控制我們能控制的事情。我個人認為，我們過去在這方面做得併不好，而這正是我們想要向資本市場證明我們有能力做到並實現的目標。

Okay. That's helpful. My second question, I know you're always limited on what you can say about Towanda, but just kind of an update. That process has still been dragging out? Where do we stand? And should we also think about, given your stated capital allocation targets, when that ultimately comes to fruition that, that capital that you received would also be funneled towards debt pay-down? Just any thoughts you can provide on that process?

好的。這很有幫助。我的第二個問題，我知道你對托旺達的看法總是有限，但只是更新一下。這個過程還一直拖著？我們站在哪裡？鑑於您既定的資本分配目標，我們是否還應該考慮一下，當最終實現這一目標時，您收到的資本也將用於償還債務？您對此過程有何想法？

I appreciate the question, Mike. Obviously, this is a court order divestiture. It's an active process, as we've shared in the past. Unfortunately, currently, no new news to report, and I'm not in a position to say anything more outside of. As soon as we have more detail that's relevant to share with the market, we will do that. That's where we are on the Towanda divestment process currently.

我很欣賞這個問題，邁克。顯然，這是法院命令剝離。正如我們過去所分享的，這是一個積極的過程。不幸的是，目前沒有新的消息可以報導，我也無法在外面多說什麼。一旦我們獲得更多與市場分享相關的細節，我們就會這樣做。這就是我們目前正在進行的 Towanda 撤資流程。

And the next question comes from the line of Truman Patterson with Wolf Research.

下一個問題來自 Wolf Research 的 Truman Patterson。

This is Trevor Allinson on. First one, previously, I think you just talked about reducing inventories by at least $50 million from where you guys at in 4Q. Looks like you've made some pretty good progress on that already. Wondering if there's any update, if you're going to take that down further or $50 million is still a good target?

這是特雷弗·阿林森。第一個，之前，我認為您剛剛談到在第四季度將庫存減少至少 5000 萬美元。看起來您已經在這方面取得了一些不錯的進展。想知道是否有任何更新，您是否打算進一步削減或 5000 萬美元仍然是一個不錯的目標？

Yes, we're still -- our outlook remains lower working capital by kind of roughly $100 million during this year. So adding a really a key part of our cash flow generation. And yes, I'd just say inventory is a big part of that, and we still are targeting roughly 50% of that coming from lower inventory. So we did have a pretty solid start to the year.

是的，我們的預期仍然是今年營運資本減少約 1 億美元。因此，添加一個真正是我們現金流生成的關鍵部分。是的，我只想說庫存是其中的很大一部分，我們的目標仍然是其中大約 50% 來自較低的庫存。所以我們今年確實有一個相當不錯的開局。

I mean, Q1 does tend to build working capital for various reasons. A lot of seasonality there as we start the year, but coming out of the kind of slower year-end typically. But yes, still on track. A lot of activity, really one of our top priorities along with profit improvement is cash flow generation, including lower working capital.

我的意思是，由於各種原因，第一季度確實傾向於建立營運資金。年初時有很多季節性因素，但通常會在年末放緩的情況下出現。但是，是的，仍然在正軌上。很多活動，實際上我們的首要任務之一以及利潤改善是現金流的產生，包括降低營運資本。

Okay. And then a quick one on Auraline and VPI. You guys are ramping those businesses throughout 2022. Just provide any color on what kind of benefit those provided in 1Q or maybe what you're expecting on a year-over-year basis in 2023 in North America from those businesses?

好的。然後快速介紹一下 Auraline 和 VPI。你們將在 2022 年擴大這些業務。請提供有關這些業務在第一季度提供的什麼樣的好處的任何信息，或者您對 2023 年北美這些業務同比的預期？

Yes. So we're ramping. I was in one of our plants here locally a few weeks back just to see the progress of the lines that we're putting in. So we're still in the process of ramping up. We have a very robust pipeline, kind of 6 months out is where we have visibility, and we're locked in. So we continue really to like the business. Obviously, it's a small piece that we're growing rapidly today. So we won't share details on kind of size.

是的。所以我們正在加速。幾週前，我來到了我們當地的一家工廠，只是為了看看我們正在投入的生產線的進展情況。所以我們仍在加速推進的過程中。我們有一個非常強大的渠道，大約 6 個月後我們就有了可見性，並且我們已經鎖定了。所以我們仍然非常喜歡這項業務。顯然，這只是我們今天正在快速增長的一小部分。因此，我們不會分享有關尺寸的詳細信息。

But it's an over-proportional growth rate in a very interesting area of the market, and we like a lot. So we're going to continue that growth just based on the good multifamily market dynamics currently and our good position to serve that.

但這是一個非常有趣的市場領域的超比例增長率，我們非常喜歡。因此，我們將根據目前良好的多戶型市場動態以及我們服務於此的良好地位來繼續這種增長。

And there are no further questions at this time. James Armstrong, I'll turn the call back over to you.

目前沒有其他問題。詹姆斯·阿姆斯特朗，我會把電話轉回給你。

Thank you for joining our call today. If you have any follow-up questions, please reach out, I would be happy to answer any of your questions. This ends our call, and please have a great day.

感謝您今天加入我們的電話會議。如果您還有任何後續問題，請聯繫我，我很樂意回答您的任何問題。我們的通話到此結束，祝您有美好的一天。

And this concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。