Knife River Corp (KNF) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Knife River Corporation third quarter results conference call. (Operator Instructions) Also note that the call is being recorded on Monday, November 4, 2024.

早安，女士們、先生們，歡迎參加 Knife River 公司第三季業績電話會議。（操作員說明）另請注意，通話錄音時間為 2024 年 11 月 4 日星期一。

And I would like to turn the conference over to Nathan Ring, Chief Financial Officer. Please go ahead sir.

我想將會議交給財務長 Nathan Ring。請先生繼續。

Thank you and welcome to everyone joining us for the Knife River Corporation third quarter results conference call. My name is Nathan Ring, Chief Financial Officer of Knife River and I'm joined by our President and Chief Executive Officer, Brian Gray.

感謝並歡迎大家參加 Knife River Corporation 第三季業績電話會議。我是 Knife River 財務長 Nathan Ring，我們的總裁兼執行長 Brian Gray 也與我一起。

Today's discussion will contain forward-looking statements about future operational and financial expectations. Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties including the risks described in our periodic reports filed with the SEC.

今天的討論將包含有關未來營運和財務預期的前瞻性陳述。由於各種風險和不確定性，包括我們向美國證券交易委員會提交的定期報告中所述的風險，實際結果可能與今天的前瞻性聲明中預測的結果有顯著差異。

For further detail. Please refer to the legal disclaimers contained in today's earnings release and other public filings which are available on our website and the SEC website, except as required by law, we undertake no obligation to update our forward-looking statements.

欲了解更多詳情。請參閱今天的收益報告以及我們網站和 SEC 網站上提供的其他公開文件中包含的法律免責聲明，除非法律要求，否則我們不承擔更新前瞻性聲明的義務。

During this presentation, we will make references to certain non-GAAP information. These non-GAAP measures are defined and reconciled to the most directly comparable GAAP measure in the appendix of today's presentation. These materials are also available on our website.

在本次演示中，我們將引用某些非 GAAP 資訊。這些非公認的會計準則衡量標準是根據今天的簡報附錄中最直接可比較公認會計準則衡量標準進行定義和調整。這些資料也可以在我們的網站上找到。

Brian Gray will begin today's call with a high level overview of our third quarter, 2024 results followed by an update on our competitive edge plan and a segment recap. Following his remarks, I will provide a product line summary, a capital update and a review of our revised 2024 financial guidance. At the conclusion of our prepared remarks, we will open the line for a question and answer session.

Brian Gray 將在今天的電話會議開始時對我們 2024 年第三季的業績進行高度概述，然後介紹我們的競爭優勢計劃的最新情況和細分市場回顧。在他發表演講之後，我將提供產品線摘要、資本更新以及對我們修訂後的 2024 年財務指引的回顧。在我們準備好的發言結束後，我們將開通問答環節。

With that, I'll now turn the call over to Brian.

現在，我將把電話轉給布萊恩。

Thank you, Nathan. Good morning everyone and thank you for joining us. We're pleased to report record third quarter revenue, gross profit and net income as we continue to demonstrate the fundamental strength of our business, our geographic segments consisting of the Pacific Northwest Mountain and Central combined to achieve a record EBITDA of $225 million for the quarter, a 6% increase from the same period last year.

謝謝你，內森。大家早安，感謝您加入我們。我們很高興地報告第三季收入、毛利潤和淨利潤創歷史新高，因為我們繼續展示我們業務的基本實力，我們的地理區域包括太平洋西北山區和中部地區，合計實現了創紀錄的2.25 億美元EBITDA本季較去年同期成長 6%。

EBITDA margin of these segments improved nearly 100 basis points to a record 22.5% growth at the geographic segments helped us overcome year-over-year decrease for the quarter of $12 million in EBITDA at our energy services segment, this reduction in energy services was anticipated and included in our guidance, a strong public funding backdrop, contributed to our results. And so did our competitive edge strategy.

這些細分市場的 EBITDA 利潤率提高了近 100 個基點，達到創紀錄的 22.5% 增長，幫助我們克服了能源服務細分市場 EBITDA 本季度 1200 萬美元的同比下降，能源服務的減少是預期的在在我們的指導中，強大的公共資金背景為我們的成果做出了貢獻。我們的競爭優勢策略也是如此。

During the quarter, we continued to implement edge initiatives intentionally focus on quality of work over quantity of work. Our team secured higher prices for our products and higher bid margins while also successfully executing on projects to optimize the value of our services. These initiatives offset volume declines and contributed to our record third quarter revenue of $1.1 billion.

在本季度，我們繼續實施邊緣計劃，有意將重點放在工作品質而不是工作數量上。我們的團隊獲得了更高的產品價格和更高的投標利潤，同時也成功執行了專案以優化我們的服務價值。這些舉措抵消了銷售下降的影響，並為我們第三季創紀錄的 11 億美元收入做出了貢獻。

Another key component of our edge plan is growth and I'm excited to announce that Knife River has invested nearly $130 million on six acquisitions this year. The majority of this capital was spent in September, October and November. So we have yet to benefit from revenue and EBITDA impact that we expect to see from these acquisitions in 2025. I'll talk more about them in just a minute, adjusted even off of the quarter was down slightly from last year's record. Primarily from the anticipated reduction in energy services.

我們邊緣計畫的另一個關鍵組成部分是成長，我很高興地宣布 Knife River 今年已投資近 1.3 億美元進行六項收購。大部分資金在 9 月、10 月和 11 月花費。因此，我們尚未從預計 2025 年這些收購帶來的收入和 EBITDA 影響中受益。我將在一分鐘內詳細討論它們，即使本季度比去年的記錄略有下降也進行了調整。主要來自能源服務的預期減少。

Higher SG&A costs also apply some downward pressure. These costs were largely related to our M&A activity including acquisition expenses on the deals I mentioned as well as due diligence on our current pipeline of opportunities, but these expenses are an investment in our future. Our corporate development team has been active, getting deals across the finish line and adding to our near term pipeline all in all our team performed well in the quarter at or near record pace and we believe we are in a great position for long term profitable growth. We remain focused on achieving our edge goals including continued progress towards our long term goal of 20% adjusted EBITDA margin.

SG&A 成本上升也帶來了一定的下行壓力。這些成本很大程度上與我們的併購活動有關，包括我提到的交易的收購費用以及對我們當前機會管道的盡職調查，但這些費用是對我們未來的投資。我們的企業開發團隊一直很活躍，完成了交易，並增加了我們的近期管道，總而言之，我們的團隊在本季度表現良好，達到或接近創紀錄的速度，我們相信我們處於長期盈利增長的有利位置。我們仍然專注於實現我們的邊緣目標，包括繼續朝著 20% 調整後 EBITDA 利潤率的長期目標取得進展。

The materials we produce and the work we perform are crucial to our local state and national economies. We have continued to refine our sales practices to optimize the pricing of our products to better recognize their full value. Average sales prices of aggregates for the quarter improved 7.6% from 2023. We rolled out new tools and training across each region to emphasize our dynamic pricing model and track progress. We see pricing momentum continuing into 2025 and we expect to benefit from price increases exceeding costs.

我們生產的材料和我們所做的工作對我們當地的州和國家經濟至關重要。我們不斷完善我們的銷售實踐，以優化我們產品的定價，以便更好地認識其全部價值。本季骨材平均銷售價格較 2023 年上漲 7.6%。我們在每個地區推出了新的工具和培訓，以強調我們的動態定價模型並追蹤進度。我們認為定價動能將持續到 2025 年，我們預計將從價格上漲超過成本中受益。

At the same time, we are finding efficiencies and improvements at our plants. Our process improvement teams or PIT Crews visited 26 plants in the third quarter continuing to identify opportunities for us to remove production bottlenecks, increase plant capabilities, improve uptime and control costs. They have now been the 58 plants in 2024 standardizing best practices, developing field training and building on the momentum from last year's success. Our local management teams wholeheartedly support our PIT Crews and feel there's significant margin expansion opportunity to be realized from this initiative.

同時，我們正在提高工廠的效率並進行改進。我們的流程改善團隊或 PIT 人員在第三季度參觀了 26 家工廠，繼續為我們尋找消除生產瓶頸、提高工廠能力、延長正常運作時間和控製成本的機會。到 2024 年，它們已成為 58 家工廠，將標準化最佳實踐、開展現場培訓並在去年成功的基礎上再接再厲。我們的當地管理團隊全心全意地支持我們的 PIT 工作人員，並認為這項措施可以實現顯著的利潤擴張機會。

While the material side of our business was busy optimizing prices, finding efficiencies and sharing best practices. Our contracting services teams were actively pushing margins in the bid room and out in the field.

雖然我們業務的材料方面正忙於優化價格、尋找效率和分享最佳實踐。我們的承包服務團隊在投標室和現場積極提高利潤。

Gross profit margin for contracting services improved 120 basis points in the quarter. Compared to last year, we continue to bid strategically and find opportunities in the field to successfully execute on work and maximize margins. The third quarter is our busiest of the year. And I'd like to thank our teams for their hard work and for truly doing a tremendous job for the sixth consecutive quarter. We have seen year-over-year contracting service margins improve this dates back to the launch of our edge plan and we could not have accomplished it without bidding discipline, job execution and our dedicated construction crews.

本季承包服務的毛利率提高了 120 個基點。與去年相比，我們繼續進行策略性投標，並在該領域尋找機會，以成功執行工作並實現利潤最大化。第三季是我們一年中最忙碌的時候。我要感謝我們的團隊的辛勤工作，感謝他們連續第六個季度真正出色地完成了工作。我們已經看到承包服務利潤率逐年提高，這可以追溯到我們的邊緣計畫的啟動，如果沒有投標紀律、工作執行和我們敬業的施工人員，我們就不可能實現這一目標。

Price optimization, cost controls and margin improvement are key components of our edge strategy. So is growth both organic and through acquisitions. We have closed on six deals so far in 2024 with a focus on aggregate reserves and construction materials. In September, we acquired the assets of Frank B Markison, so a small aggregate producer in California's Central Valley.

價格優化、成本控制和利潤提高是我們優勢策略的關鍵組成部分。有機成長和透過收購實現的成長也是如此。2024 年到目前為止，我們已完成六筆交易，重點是總儲備和建築材料。9 月份，我們收購了 Frank B Markison 的資產，這是一家位於加州中央山谷的小型骨材生產商。

In October, we acquired the assets of two additional aggregate producers, rock products, incorporated in Central Oregon and a high quality sand reserve to support our operations in Sioux Falls, South Dakota. Also in October, we finalized a lease agreement to operate three existing ready mix plants in California. We will be able to leverage our local aggregates and just two days ago, we acquired the assets of Albina Asphalt. Albina is a liquid Asphalt supplier with terminals in Washington, Oregon and California.

10 月，我們收購了另外兩家集料生產商、岩石產品生產商（位於俄勒岡州中部）的資產以及高品質沙子儲備，以支持我們在南達科他州蘇福爾斯的業務。同樣在 10 月，我們敲定了一項租賃協議，在加州營運三個現有的預拌工廠。我們將能夠利用當地的骨料，就在兩天前，我們收購了 Albina Asphalt 的資產。Albina 是一家液體瀝青供應商，在華盛頓州、俄勒岡州和加利福尼亞州設有碼頭。

Albina has a leading market position and will increase the capacity of our energy services segment by approximately 25%. This is an exciting deal that expands the footprint of our high margin liquid Asphalt business on the west coast and supports our vertical integration. With these acquisitions, we are adding strategic assets to our portfolio that enhance our market positions and align with our strategy of acquiring materials based companies within or adjacent to our current operations. These acquisitions are expected to generate an attractive financial return with purchase multiple between 6 times to 8 times the projected 2025 EBITDA.

Albina 擁有領先的市場地位，並將把我們的能源服務部門的產能提高約 25%。這是一項令人興奮的交易，擴大了我們在西海岸的高利潤液體瀝青業務的足跡，並支持我們的垂直整​​合。透過這些收購，我們正在為我們的投資組合添加策略資產，以增強我們的市場地位，並符合我們收購當前業務範圍內或鄰近的材料公司的策略。這些收購預計將產生具有吸引力的財務回報，購買倍數為預計 2025 年 EBITDA 的 6 至 8 倍。

We have several other deals in our pipeline that range in size and our focus remains on materials based acquisitions and midsized high growth markets as we did in the third quarter. We expect to see higher corporate development costs in the fourth quarter compared to last year. While closing on deals during the off season can create a headwind.

我們還有其他幾筆規模不等的交易，我們的重點仍然是基於材料的收購和中型高成長市場，就像我們在第三季所做的那樣。我們預計第四季的企業開發成本將高於去年。雖然在淡季期間完成交易可能會帶來阻力。

We have accounted for those costs in our updated guidance and we view these expenses as an investment in our future. The pipeline of acquisition opportunities remain strong in our markets and we look forward to continuing our business development activity. In addition to acquisition growth, our existing operations are performing well and are benefiting from our edge initiatives and strong funding for public projects.

我們已在更新的指南中考慮了這些成本，並將這些費用視為對未來的投資。我們市場上的收購機會仍然強勁，我們期待繼續我們的業務開發活動。除了收購成長之外，我們現有的業務也表現良好，並受益於我們的優勢舉措和對公共項目的大力資助。

Each of our segments is seeing continued opportunities to bid on projects with record or near record budgets at our state Departments of Transportation. We have a very good schedule of dot bid lettings coming up for 2025 across our states including some sizable projects with significant pull through of aggregates ready mix and Asphalt.

我們的每個部門都看到了持續的機會來投標我們州交通部創紀錄或接近創紀錄預算的項目。我們有一個非常好的時間表，將於 2025 年在各州進行點投標出租，其中包括一些大型項目，其中包括預拌骨料和瀝青的大量使用。

With about 50% of IAJ funding yet to be allocated, public work continues to be the main driver for our contracting services. We believe we are still at the beginning of what looks to be a long period of growth in the construction industry, the roads, bridges and airports that are so vital, our economy needs fixing and that doesn't happen overnight. We expect to continue benefiting from the build out of the nation's infrastructure for years to come.

由於大約 50% 的 IAJ 資金尚未分配，公共工程仍然是我們承包服務的主要驅動力。我們相信，我們仍處於建築業、道路、橋樑和機場的長期成長的開始階段，這些產業至關重要，我們的經濟需要修復，而這不會一蹴可幾。我們預計未來幾年將繼續受益於國家基礎設施的建設。

Each of our segments had a solid third quarter. At a geographic segments, price increases helped drive our record revenue again in total. These segments achieved record, EBITDA and EBITDA margins. I'll briefly discuss a few highlights from each segment in the Pacific third quarter revenue increased to a record $165 million driven by price increases across all product lines and continued construction activity in northern California.

我們每個部門的第三季業績都表現強勁。在某個地理區域，價格上漲幫助我們的總收入再次創下新紀錄。這些部門的 EBITDA 和 EBITDA 利潤率均創歷史新高。我將簡要討論太平洋地區第三季度每個部門的一些亮點，收入增長至創紀錄的 1.65 億美元，原因是所有產品線價格上漲以及北加州持續的建築活動。

There's strong funding support for road and highway projects where wildfires have damaged the local infrastructure and require rebuilding we have a significant backlog of work there which includes an emphasis right now on more earth moving and heavy construction than it does paving. This has contributed to a temporary Asphalt volume decline in the segment. As I mentioned, we added to our ready mix capacity and added aggregate reserves in California.

對道路和高速公路項目提供了強有力的資金支持，這些項目因野火破壞了當地基礎設施並需要重建，我們在那裡有大量積壓的工作，其中包括目前重點是更多的土方移動和重型建築而不是鋪路。這導致該領域的瀝青銷量暫時下降。正如我所提到的，我們增加了預拌產能並增加了加州的總儲備。

In the Northwest revenue was up 4% and EBITDA was up 15% to a quarterly record of nearly $56 million. This region had strong public agency work primarily in central and southern Oregon. Gross margin for contracting services in the Northwest improved 490 basis points from the same period last year. The region also benefited from having it pre plant fully operational.

西北地區的營收成長了 4%，EBITDA 成長了 15%，達到近 5,600 萬美元的季度記錄。該地區的公共機構工作主要集中在俄勒岡州中部和南部。西北地區承包服務毛利率較去年同期增加490個基點。該地區還受益於其預工廠的全面運作。

Efficiencies at the plant in Washington combined with demand for pre stress projects positively contribute to both EBITDA and EBITDA margin. On October 18, the region purchased the assets of Rock Products, Inc bolstering its aggregate reserves in Central Oregon and adding a new ready-mix operation.

華盛頓工廠的效率加上對預力項目的需求，對 EBITDA 和 EBITDA 利潤率做出了積極貢獻。10 月 18 日，該地區購買了 Rock Products, Inc 的資產，增強了其在俄勒岡州中部的總儲量，並增加了新的預混業務。

Switching to mountain revenue and EBITDA were in line with last year's records for the first nine months of the year. EBITDA in the mountain region is up 12% year-over-year. Record revenue in the quarter was driven by higher pricing and continued contracting activity. Idaho Falls had several jobs that drove revenue growth including how we work and the de-icing project at the Jacksonville Airport.

今年前九個月，轉向山區的收入和 EBITDA 與去年的記錄一致。山區的 EBITDA 年成長 12%。該季度創紀錄的收入是由更高的定價和持續的承包活動推動的。愛達荷瀑布有多項工作推動了收入成長，包括我們的工作方式和傑克遜維爾機場的除冰項目。

Backlog is also up 12% year-over-year and continues to grow with very strong bid schedule overall, the work is there and this continues to be one of our fastest growing markets. In our central segment, we have fully embraced the edge initiatives. This segment continues to see the most improved EBITDA margins with trailing 12 month. EBITDA up 200 basis points compared to the same period last year for the quarter. EBITDA margins hit an all time high of 22.5% pricing, improvements outpaced cost and contribute to a 7% increase in EBITDA for the quarter.

積壓訂單也同比增長了 12%，隨著整體投標計劃非常強勁而繼續增長，工作就在那裡，這仍然是我們增長最快的市場之一。在我們的中心部分，我們完全接受了邊緣舉措。該細分市場的 EBITDA 利潤率在過去 12 個月中持續保持最大改善。本季 EBITDA 較去年同期成長 200 個基點。EBITDA 利潤率創歷史新高，定價為 22.5%，改善速度超過了成本，推動本季 EBITDA 成長 7%。

Also contribute to our record EBITDA and pick up in margin was disciplined project bidding and favorable project execution on contracting services. We're looking forward to several good bidding opportunities across the segment including positive news from Iowa, Nebraska, Minnesota and Texas which have all pointed to more projects and more total paving tonnage for the 2025 season. This region has identified several organic growth opportunities and we look forward to sharing more information on these exciting projects at the appropriate time.

嚴格的專案投標和承包服務方面有利的專案執行也為我們創紀錄的 EBITDA 和利潤率回升做出了貢獻。我們期待整個細分市場的幾個良好的投標機會，包括來自愛荷華州、內布拉斯加州、明尼蘇達州和德克薩斯州的積極消息，這些消息都表明2025 年鋪設季節將有更多項目和更多總攤舖噸位。該地區已經確定了一些有機增長機會，我們期待在適當的時候分享有關這些令人興奮的項目的更多資訊。

Finally, our liquid Asphalt product line is having its second best year ever. It's on track to hit its EBITDA guidance for the full year. For the quarter revenue and EBITDA were both down from record highs primarily driven by lower raw materials costs and subsequent lower pricing. We have a strong book of business for 2025 and we anticipate adding to it during the fourth quarter as our state adds more paving projects to the bid schedules.

最後，我們的液體瀝青產品線迎來了有史以來第二好的一年。該公司預計將達到全年 EBITDA 指引。本季營收和 EBITDA 均較歷史高點下降，主要是由於原物料成本下降以及隨後的定價下降。我們 2025 年的業務量很大，隨著我們州在投標時間表中增加更多的鋪路項目，我們預計會在第四季度增加業務量。

Over the past weekend, we purchased the assets of Albina asphalt, a liquid asphalt business with terminals in Washington, Oregon and California. As I mentioned earlier, this expands our footprint within markets where we have aggregates and Asphalt operations. Further strengthening our vertical integration. We are very excited to welcome Albina 80 team members of the life at Knife.

上週末，我們購買了 Albina 瀝青的資產，這是一家液體瀝青企業，在華盛頓、俄勒岡州和加利福尼亞州設有碼頭。正如我之前提到的，這擴大了我們在擁有骨材和瀝青業務的市場中的足跡。進一步加強垂直整合。我們非常高興地歡迎 Albina 80 位團隊成員加入 Knife 生活。

Before turning the call over to Nathan, I'd like to reiterate that we believe we are in the early days of a long infrastructure build out in our country. Knife River is well positioned to capitalize on this growth. The work our teams do is essential for our cities, our states and the nation we are performing at record levels and we're taking intentional steps to keep getting better.

在將電話轉給內森之前，我想重申，我們相信我們正處於我國長期基礎建設的早期階段。Knife River 已做好充分利用這一增長的準備。我們的團隊所做的工作對於我們的城市、州和國家至關重要，我們正在以創紀錄的水平開展工作，我們正在採取有意識的措施來不斷進步。

We are focused on optimizing prices and controlling costs. We are focused on strategic bidding and solid project execution. We are focused on growing our company both organically and through acquisitions. Our strategy is working and we're looking forward to a strong finish of 2024 and good things in the years to come.

我們專注於優化價格和控製成本。我們專注於策略性投標和紮實的專案執行。我們專注於透過有機發展和收購來發展我們的公司。我們的策略正在發揮作用，我們期待 2024 年取得圓滿成功，並在未來幾年裡取得好成績。

I'll now turn the call back over to Nathan for his remarks. Nathan.

現在我將把電話轉回給內森聽他的演講。內森。

Thank you, Brian. I'd like to begin with an overview of our consolidated results and product line performance, then provide a summary of our capital position as well as capital allocation priorities and then by outlining our updated 2024 guidance.

謝謝你，布萊恩。我想先概述我們的綜合業績和產品線績效，然後概述我們的資本狀況和資本配置優先事項，最後概述我們更新的 2024 年指導。

As we look at our consolidated results, we reached another third quarter record with revenue increasing to $1.1 billion. This includes record revenue at our geographic segments. We are proud of these records as our operations continue to focus on higher profit and higher margin work. This is further demonstrated by our record gross profit of $273 million for the quarter, driven by a 7% improvement across the geographic segments. Adjusted EBITDA was down for the quarter due to the expected decline in Energy Services as well as higher SG&A costs.

當我們查看合併業績時，我們第三季再創新高，營收增至 11 億美元。這包括我們地理區域創紀錄的收入。我們為這些記錄感到自豪，因為我們的業務繼續專注於更高的利潤和更高的利潤率工作。我們本季創紀錄的 2.73 億美元毛利進一步證明了這一點，這得益於各地區細分市場成長 7%。由於能源服務預期下降以及銷售、管理及行政費用上升，本季調整後 EBITDA 下降。

SG&A for the quarter was $64 million, a $5 million increase over the prior period. Approximately half of the increase was related to acquisition costs that Brian mentioned. Looking ahead to the fourth quarter, we anticipate a similar increase in our SG&A expenses of $6 million, primarily from due diligence costs currently in progress.

本季的 SG&A 為 6,400 萬美元，比上一期增加 500 萬美元。大約一半的成長與布萊恩提到的收購成本有關。展望第四季度，我們預計 SG&A 費用將類似增加 600 萬美元，主要來自目前正在進行的盡職調查成本。

Moving to product line performance. Our core product lines continue to benefit from the adoption of our edge initiatives. Aggregates, ready-mix and Asphalt have all seen healthy pricing improvements for the quarter and for the year. Year-to-date, average selling prices for aggregates increased 8%, ready-mix 10% and Asphalt 2%, driven by our dynamic pricing effort. With the continued adoption of a dynamic pricing across our footprint, we are confident in our ability to optimize pricing and profitability beyond 2024.

轉向產品線性能。我們的核心產品線繼續受益於我們的邊緣計劃的採用。本季和全年骨材、預拌混凝土和瀝青的價格均出現了健康的改善。今年迄今為止，在我們動態定價工作的推動下，骨材平均銷售價格上漲了 8%，預拌混凝土上漲了 10%，瀝青上漲了 2%。隨著我們在整個業務範圍內繼續採用動態定價，我們對 2024 年後優化定價和獲利能力的能力充滿信心。

As anticipated, our initiative to capture pricing over volume led to volume declines across our product lines for the quarter and the year. Year-to-date, we have seen aggregate volume declined 5%, ready-mix 10% and Asphalt 5%. In addition to the effects of our pricing strategy, we have seen some private work get delayed as developers navigate interest rates and uncertainty in the market. We expect that money will come back into play as rates improve.

正如預期的那樣，我們採取定價而非銷售的舉措導致本季和全年我們產品線的銷售下降。今年迄今為止，我們看到總銷量下降了 5%，預拌混凝土銷量下降了 10%，瀝青銷量下降了 5%。除了我們定價策略的影響之外，我們還發現，由於開發商應對利率和市場的不確定性，一些私人工程被推遲。我們預計隨著利率的提高，資金將重新發揮作用。

All in all, as we look ahead to 2025, we see volumes beginning to increase again now that we have mostly completed the hard work of resetting our customer base and narrowing the type of projects we bid. Despite the lower volumes, strong pricing improvement and cost control initiatives led to improved gross margin in the quarter, including a 120 basis point improvement in ready-mix and a 230 basis point improvement in Asphalt. Although aggregates gross margin was flat for the quarter due in large part to lower volumes, our aggregates gross profit per ton increased 7.7% for the quarter and 11.5% year-to-date.

總而言之，展望 2025 年，我們看到數量開始再次增加，因為我們已經基本完成了重置客戶群和縮小投標項目類型的艱苦工作。儘管銷量較低，但強有力的定價改進和成本控制舉措導致本季度毛利率提高，其中預拌料提高了 120 個基點，瀝青提高了 230 個基點。儘管本季的總毛利率持平，這在很大程度上是由於銷量下降，但本季每噸的總毛利成長了 7.7%，年初至今成長了 11.5%。

Moving from materials to contracting services. Gross margins improved 120 basis points year-over-year to 12.9% in the third quarter, directly related to our pursuit of higher margins on bid day and then once in hand, successfully executing on this work to capture the value.

從材料轉向承包服務。第三季的毛利率年增了 120 個基點，達到 12.9%，這與我們在投標日追求更高的利潤直接相關，然後成功地執行這項工作以獲取價值。

Our backlog as of September 30 was $755 million, a 3% increase year-over-year at slightly higher expected margins. 87% of the backlog is public work with secure funding that has already been dedicated. We believe the type of work we do, coupled with this reliable public funding lowers our overall risk profile and provides pull-through demand for our upstream higher-margin product lines.

截至 9 月 30 日，我們的積壓訂單為 7.55 億美元，年增 3%，預期利潤率略高。 87% 的積壓工作是公共工作，資金有保障且已投入使用。我們相信，我們所做的工作類型，再加上可靠的公共資金，可以降低我們的整體風險狀況，並為我們的上游高利潤產品線提供拉動需求。

Moving to our balance sheet and capital allocation priorities. We ended the quarter with $220 million in unrestricted cash and no amount drawn on our $350 million revolver. Year-to-date, we have generated approximately $150 million in cash from operations and anticipate this number will grow through year-end as we tend to generate more cash flow in the fourth quarter than the other quarters.

轉向我們的資產負債表和資本配置優先事項。本季結束時，我們擁有 2.2 億美元的非限制性現金，而 3.5 億美元的左輪手槍沒有提取任何金額。今年迄今為止，我們已從營運中產生了約 1.5 億美元的現金，並預計這一數字將在年底之前增長，因為我們傾向於在第四季度產生比其他季度更多的現金流。

Additionally, our teams have done a great job bringing down our days sales outstanding from 38 days in 2023 to 34 days in 2024, which also contributed to improved working capital and our cash position. With our available liquidity and a net leverage position of 1 times trailing 12-month adjusted EBITDA, we are in a strong position to execute on our capital allocation priorities.

此外，我們的團隊做得非常出色，將應收帳款天數從 2023 年的 38 天減少到 2024 年的 34 天，這也有助於改善營運資本和現金狀況。憑藉我們的可用流動性和過去 12 個月調整後 EBITDA 1 倍的淨槓桿頭寸，我們有能力執行我們的資本配置優先事項。

We look at those priorities in 2 major categories, which align with our edge strategy. The first category is disciplined use of capital, which includes maintenance of fixed assets and internal improvements from our edge initiatives. We estimate 2024 capital expenditures for our disciplined category to remain between 5% and 7% of revenue with $127 million spent as of September 30.

我們將這些優先事項分為兩個主要類別，這與我們的優勢策略一致。第一類是資本的嚴格使用，包括固定資產的維護和我們的優勢措施的內部改進。我們預計 2024 年紀律類別的資本支出將維持在收入的 5% 至 7% 之間，截至 9 月 30 日支出為 1.27 億美元。

The second category is growth, which includes organic and acquisition opportunities. Brian highlighted our recent acquisition activity and our investment of $129 million through today. He also noted that we have additional deals in our near-term pipeline that would be incremental to this amount. Also within the growth category, we anticipate spending $23 million for the remainder of 2024 on the initial stages of greenfield projects.

第二類是成長，包括有機機會和收購機會。Brian 強調了我們最近的收購活動以及截至今天的 1.29 億美元投資。他還指出，我們的近期管道中還有其他交易，這些交易將增加到這筆金額。同樣在成長類別中，我們預計 2024 年剩餘時間將在綠地計畫的初始階段支出 2,300 萬美元。

Lastly, we remain focused on quality investments that will help us achieve our edge goals. Based on our third quarter results, and what we see ahead in the fourth quarter, we are revising our full year estimates to account for the increased SG&A costs, which largely related to corporate development and health care expenses. We are tightening our consolidated revenue guidance range to $2.85 billion to $2.95 billion.

最後，我們仍然專注於優質投資，這將幫助我們實現我們的邊緣目標。根據我們第三季的業績以及我們對第四季度的展望，我們正在修改全年預測，以考慮到銷售、管理和行政費用的增加，這主要與企業發展和醫療保健費用有關。我們將綜合收入指導範圍收緊至 28.5 億美元至 29.5 億美元。

For adjusted EBITDA, we are being in the top end of our guidance, which now reflects a range of $445 million to $465 million. This consists of geographic segments and corporate services contributions between $390 million to $405 million, and Energy Services remains unchanged with contributions between $55 million and $60 million.

對於調整後的 EBITDA，我們正處於指導範圍的頂端，目前的範圍為 4.45 億美元至 4.65 億美元。其中包括 3.9 億至 4.05 億美元之間的地理區域和企業服務捐款，能源服務保持不變，捐款在 5,500 萬至 6,000 萬美元之間。

Our full year 2024 guidance includes the following assumptions, we anticipate average selling prices for our aggregates and ready-mix product lines to increase high single digits and Asphalt pricing to be up low single digits. We expect aggregate and Asphalt volumes to be down mid-single digits and ready-mix down high single digits. And finally, guidance is based on normal economic and operating conditions for the remainder of the year.

我們的 2024 年全年指引包括以下假設，我們預計骨材和預拌產品線的平均銷售價格將上漲高個位數，瀝青定價將上漲低個位數。我們預期骨材和瀝青產量將下降中個位數，預拌混凝土產量將下降高個位數。最後，指導意見是基於今年剩餘時間的正常經濟和營運狀況。

In conclusion, we are proud of the work our teams have done in the third quarter, and we look to finish the year with another adjusted EBITDA record. Our geographic segments are producing excellent results. We have a strong backdrop of dedicated infrastructure funding, and we're excited about the contributions we expect to see from our acquisitions. Knife River is growing, and we are committed to achieving our edge goals and delivering long-term shareholder value.

總而言之，我們對我們的團隊在第三季所做的工作感到自豪，我們希望在今年結束時再創調整後 EBITDA 記錄。我們的地理區域正在產生出色的成果。我們擁有專門的基礎設施資金的強大背景，我們對我們期望從收購中看到的貢獻感到興奮。Knife River 不斷發展，我們致力於實現我們的優勢目標並提供長期股東價值。

With that, I'd like to open the call for questions.

至此，我想開始提問。

Thank you, sir. (Operator Instructions)

謝謝您，先生。（操作員說明）

Kathryn Thompson at Thompson Research.

湯普森研究中心的凱瑟琳湯普森。

Hi. Thank you. For taking my questions today. Yes, it's probably geographic performance in the quarter, I think. And you noted that the quarter saw a saw a EBITDA gain just from your geographic specific performance. How did EBITDA margins perform in Q3 for your geographies? And how has that trended year-to-date?

你好。謝謝。今天回答我的問題。是的，我認為這可能是本季的地理表現。您指出，本季僅從您所在地區的特定業績就獲得了 EBITDA 收益。您所在地區第三季的 EBITDA 利潤率表現如何？今年迄今的趨勢如何？

Appreciate the question. Yeah, so when we talk about geo segments, just a quick level set. We're talking about the Pacific region, the Northwest region, the Mountain region and the Central region. And that houses all of our products other than energy services liquid Asphalt. And so that includes aggregates, ready-mix, Asphalt contracting services in all of those geographic segments. And so you're right, our EBITDA was up 6% for the quarter.

感謝這個問題。是的，所以當我們談論地理細分時，只是一個快速的等級設定。我們談論的是太平洋地區、西北地區、山區和中部地區。其中包含除能源服務液體瀝青以外的所有產品。因此，這包括所有這些地理區域的骨材、預拌混凝土、瀝青承包服務。所以你是對的，我們本季的 EBITDA 成長了 6%。

And within that, if you look at our EBITDA margins in those geographic segments alone, actually improved 90 basis points for the quarter. If you look at for the full year for through 9 months, our actual EBITDA contribution is up 15%, and the EBITDA margin in those geographic segments is up 170 basis points. And so we're both performing on the EBITDA and EBITDA margin at that geographic segment. And obviously, that's been partially offset by the headwinds that we knew about at Energy Services coming into this year. So performing very well in those geographic segments and all of the major product lines.

其中，如果您只查看這些地理區域的 EBITDA 利潤率，本季實際上提高了 90 個基點。如果您查看 9 個月的全年情況，我們的實際 EBITDA 貢獻增加了 15%，而這些地理區域的 EBITDA 利潤率則增加了 170 個基點。因此，我們在該地理區域的 EBITDA 和 EBITDA 利潤率上都有表現。顯然，這已被我們所知的能源服務今年即將到來的不利因素部分抵消。因此，在這些地理區域和所有主要產品線中表現都非常好。

Okay, thanks. And a follow-up and more of a clarification on some of the growth initiatives in the quarter. What are or not included in terms of the type of assets acquired. And you noted that the increase in SG&A was related to M&A and health care cost. If you could segment what was M&A related versus health care related. Thank you.

好的，謝謝。以及對本季一些成長舉措的後續行動和更多澄清。所收購資產的類型包括或不包括哪些內容。您指出，SG&A 的成長與併購和醫療保健成本有關。如果你能細分哪些是併購相關的，哪些是與醫療保健相關的。謝謝。

Yeah. So just to clarify, so year-to-date, we have purchased about $129 million of new companies that consist of six companies. Two of those were back in the second quarter, the White in Bakken, the Graves Operation. In the third quarter, we closed on FP Marks and Sons, an aggregates operation in Central California. And then as of late here in the fourth quarter in October and November, we closed on the sand operation there in South Dakota Rock products, which is a quarry in ready-mix operation in Central Oregon.

是的。澄清一下，今年迄今為止，我們已經收購了約 1.29 億美元的新公司，其中包括 6 家公司。其中兩個在第二節回來了，白肯的格雷夫斯行動。第三季度，我們關閉了 FP Marks and Sons，這是一家位於加州中部的骨材業務。然後，截至 10 月和 11 月第四季末，我們關閉了南達科他州岩石產品的沙子作業，這是俄勒岡州中部的預拌作業採石場。

And then just over this past weekend, closed on the assets of Albina Asphalt. It's got the four terminals, one in Washington, two in Oregon and one in California. So we have continued to be focused on aggregates-led materials-based companies that are within or adjacent to our existing markets, which are those midsized, high-growth markets. You're right. We did have some additional SG&A expenses this quarter.

就在上週末，阿爾比納瀝青公司的資產被關閉。它有四個航站樓，一個在華盛頓，兩個在俄勒岡州，一個在加利福尼亞州。因此，我們繼續關注現有市場（即那些中型、高成長市場）內或鄰近的以骨材為主導的材料公司。你說得對。本季我們確實有一些額外的銷售、管理及行政費用。

And I'll just let Nathan touch specifically on the SG&A bucket that you asked about Kathryn.

我會讓 Nathan 特別談談您問到的有關 Kathryn 的 SG&A 桶。

Good morning, Kathryn, thank you for the question. Yeah, for the SG&A piece, the corporate SG&E piece, it is up 8%, as I shared in the prepared remarks. About half of that relates to our acquisition costs, as Brian talked about. The other half does relate to health and (inaudible) claims that are higher in the quarter. And it’s probably important to note that as we look at the third quarter and going forward, we really are now comparing like-for-like. What I mean by that is if you think back to last year, third quarter, that’s when we set up these departments that were previously provided by MDU.

早安，凱瑟琳，謝謝你的提問。是的，對於 SG&A 部分，即企業 SG&E 部分，它上漲了 8%，正如我在準備好的演講中分享的那樣。正如布萊恩所說，其中大約一半與我們的收購成本有關。另一半確實與本季較高的健康和（聽不清楚）索賠有關。值得注意的是，當我們展望第三季和未來時，我們現在確實正在進行同類比較。我的意思是，如果你回想去年第三季度，我們當時就設立了這些以前由 MDU 提供的部門。

And so we have those set up successful with that coming in at lower-than-expected costs. So now you have a fair comparison year-over-year, but we are up it really is of that 8% split between those two main categories of acquisition costs, about half of that and health and wealth are about half of that. As we look into the fourth quarter, as I shared earlier, probably pretty comparable to that in terms of about $6 million compared to the $4 million in the fourth quarter of higher corporate SG&A costs.

因此，我們以低於預期的成本成功建立了這些項目。因此，現在您可以進行公平的逐年比較，但我們發現這兩個主要類別的購買成本確實各佔 8%，其中大約一半，健康和財富大約佔一半。正如我之前分享的，當我們展望第四季度時，與第四季度較高的企業 SG&A 成本 400 萬美元相比，大約 600 萬美元可能相當可觀。

Most of that relates to the acquisition costs that we’ve been talking about that is due diligence for the quarter, some integration costs for the acquisitions we made here in the beginning of the fourth quarter and the end of the third quarter. So Kathryn, hopefully, that helps you give you a little more color on the split of the SG&A, both for the third and fourth quarter.

其中大部分與我們一直在談論的收購成本有關，即本季的盡職調查，以及我們在第四季初和第三季末進行的收購的一些整合成本。因此，凱瑟琳希望這可以幫助您對第三季和第四季的 SG&A 劃分有更多了解。

It does. Thanks very much and best of luck.

確實如此。非常感謝，祝你好運。

Thank you.

謝謝。

Trey Grooms at Stephens.

史蒂芬斯的特雷·格魯姆斯。

Hey, good morning, everyone. So on -- I guess I wanted to touch on the guide. If you kind of look at the aggregates, the volume guidance there, the ready-mix volume guidance as well have both been taken down a little bit from where they were. I think volume now is mid-single digits that you mentioned, and I think it was low single digit -- flat to low single digits in AGS, and then low single to mid-single in ready mix. Can you talk about some of the drivers there? I know you're clearly pushing pricing over volume, but then you also mentioned maybe some projects being pushed out. If you can help us kind of dissect some of that, and I'll just start with that. Thank you.

嘿，大家早安。等等——我想我想談談指南。如果你看一下總量，你會發現那裡的成交量指引、預拌成交量指引都比原來的水準下降。我認為現在的成交量是你提到的中個位數，而且我認為它是低個位數——AGS 中是持平到低個位數，然後是預混中的低個位數到中個位數。您能談談那裡的一些司機嗎？我知道你顯然是在推動定價而不是數量，但你也提到也許有些項目被推遲了。如果你能幫助我們剖析其中的一些內容，我就從這個開始。謝謝。

No, I appreciate that. And you're right. Most of our volume declines this year, Trey, have been intentional you take on quality of work over quantity, and that has had a big part of that. And we have -- we've done a lot of the difficult work, the hard work of resetting our customer base and really narrowing the type of projects that we are bidding.

不，我很欣賞這一點。你是對的。特雷，今年我們的銷售量下降大部分是因為你故意重視工作品質而不是數量，這在很大程度上是造成這種情況的原因。我們已經做了很多困難的工作，重置我們的客戶群並真正縮小我們投標的專案類型的艱苦工作。

And so as we look forward, going forward, a little bit in here in the fourth quarter, primarily into next year, really, we need to level set and look at the year-over-year comparison and a lot of that hard work is behind us. For instance, we've got two portable Asphalt plants in the central region that previous year, last year, was out chasing some of that higher volume, lower margin work, and we've parked those plants in stationary operations, and they're literally doing about 300,000 tons of less volume this year compared to last year.

因此，當我們展望未來時，在第四季度，主要是明年，我們確實需要設定水平並查看同比比較，並且很多艱苦的工作是在我們身後。例如，我們在中部地區有兩個移動式瀝青廠，去年，去年，我們正在追逐一些產量更大、利潤率更低的工作，我們把這些工廠停在固定運營中，它們與去年相比，今年的產量實際上減少了​​約30 萬噸。

Well, those plants are going to be parked in the same pit next year. And so that year-over-year comparison going forward into 2025 really is going to be a new level set that we're looking at. And so most of the volumes decline have been intentional.

好吧，明年這些植物將停在同一個坑裡。因此，到 2025 年的逐年比較確實將成為我們正在考慮的新水平。因此，大部分銷量下降都是有意為之。

And we've been very close to our guides on that. I will say that there has been some timing of projects, some larger impact jobs that we had last year that we did not have this year in the third quarter. Some of those that we thought we were going to have in the third quarter have been pushed out into next year, a fairly large windmill project in Wyoming.

在這方面我們與我們的嚮導非常接近。我想說的是，去年第三季我們沒有一些專案的時機，一些影響更大的工作。我們原以為將在第三季度完成的一些項目已被推遲到明年，即懷俄明州的一個相當大的風車項目。

And just if you look at how we started the year, we came out of the gate very fast. We had very favorable weather. We were up 22% after the first half of the year as it relates to our EBITDA performance. So a little bit of it's timing of projects. And then there is a softening and the pull-through of aggregates that we use in ready mix is definitely have an impact in our aggregates operations as well.

只要你看看我們今年是如何開始的，我們很快就走出了大門。我們的天氣非常好。上半年後，我們的 EBITDA 業績成長了 22%。所以有點是專案的時間安排。然後，我們在預拌混凝土中使用的骨材會出現軟化和拉穿，這肯定也會對我們的骨材運作產生影響。

And we continue to see that softening in that private side of the work. Fortunately, for us, we don't have as much exposure to the private work, especially on our contracting services. But we are noticing that in ready-mix. The type of work that we're doing in contracting services, again, for the quarter, we saw a little bit more heavier civil and dirt work that we did paving, specifically in the California markets. I saw that in the Idaho market.

我們繼續看到工作的私人方面的軟化。幸運的是，對我們來說，我們沒有太多接觸私人工作，特別是在我們的承包服務方面。但我們在預混料中註意到了這一點。就本季我們在承包服務方面所做的工作類型而言，我們看到鋪路工作的土木和泥土工作量增加了一些，特別是在加州市場。我在愛達荷市場看到了這一點。

And so really nothing alarming as far as backlog and things going forward. But I would say, Trey, the good news for us is that we think a lot of that hard work that we did of resetting our customer base and kind of level setting on the type of work that we're bidding is behind us, and we'll see favorable comps going into next year, kind of more reflective of the overall market, which we think is still very strong.

因此，就積壓和未來的情況而言，確實沒有什麼令人擔憂的。但我想說，特雷，對我們來說好消息是，我們認為我們在重置客戶群和對我們投標的工作類型進行級別設置方面所做的大量艱苦工作已經過去了，並且我們將在明年看到有利的比較，這更能反映整體市場，我們認為整體市場仍然非常強勁。

Okay. Alright, that's helpful and I guess it's -- is it fair to say then that the revision to the volume guide is the -- is more on the kind of the end market or actual demand side of things softening incrementally versus the competitive landscape becoming more difficult to push price or anything like that. Is it -- is that a fair assumption because there was kind of this reduction there trying to figure out how much of that would really be due to you guys taking a more -- or maybe it even becoming more difficult to push the price than it was before.

好的。好吧，這很有幫助，我想——可以公平地說，對銷量指南的修訂是——更多的是終端市場或實際需求方面的情況逐漸軟化，而不是競爭格局變得更加激烈。難推動價格或類似的事情。這是一個公平的假設嗎，因為有某種程度的減少，試圖弄清楚其中有多少真正是由於你們採取了更多的措施，或者也許推動價格變得比它更困難是之前。

No, I don't think it's more difficult to push our price. I think what you're seeing is -- I mean, so through nine months, I mean, through the third quarter, our volumes are down 5%. And we've kept that for the rest of the year, 5%. As you know, our fourth quarter because of our seasonality, does not -- is not going to push those numbers directionally very far from where they currently are sitting.

不，我不認為提高我們的價格會更困難。我想你看到的是——我的意思是，在過去九個月裡，我的意思是，到第三季度，我們的銷量下降了 5%。我們在今年餘下的時間裡保持了這個比例，5%。如您所知，由於季節性因素，我們的第四季不會將這些數字從目前的位置推向很遠。

And so really, I think that year-to-date, our guidance that's built in for the full 12 months is very reflective of where we sit today after nine months. And frankly, after we sit -- we looked at our October sales and feel comfortable that those volume guides are for the full year, knowing that the fourth quarter has very low impact of where we sit year-to-date.

事實上，我認為今年迄今為止，我們為整整 12 個月制定的指導非常反映了 9 個月後我們今天所處的情況。坦白說，在我們坐下來之後，我們查看了 10 月份的銷售情況，並對全年的銷售指南感到滿意，因為我們知道第四季度對我們年初至今的影響非常小。

Okay. That's helpful. And then on acquisitions, I mean, clearly, you guys have stepped it up and several acquisitions over the last few quarters. Can you talk a little bit about how those fit into the longer-term strategy, how they fit into the dynamic pricing? And do they help do they help in those efforts? And then any color you can give us on the contribution we can kind of back into the EBITDA, given what you've -- the multiple you gave us, but any other details around that would be great. Thank you.

好的。這很有幫助。然後在收購方面，我的意思是，很明顯，你們在過去幾個季度加大了力度，進行了幾筆收購。您能否談談這些如何適應長期策略，如何適應動態定價？他們對這些努力有幫助嗎？然後，您可以給我們提供的任何關於貢獻的顏色，我們都可以回到 EBITDA，考慮到您所提供的——您給我們的倍數，但任何其他細節都很好。謝謝。

I appreciate that. And so yes, we're very excited about our activity. Those acquisitions that we executed in the last nine months, 10 months now. Very excited about the pipeline. It remains full. Our team continues to be very active and working on due diligence this quarter. And so very excited about both the pipeline and the deals we've gotten across the finish line. Those deals are exactly what we've said that we wanted to do our materials-based aggregates led in our existing markets.

我很欣賞這一點。所以，是的，我們對我們的活動感到非常興奮。我們在過去 9 個月（現在是 10 個月）執行的收購。對管道非常興奮。它仍然是滿的。我們的團隊本季繼續非常積極地進行盡職調查。我們對已經完成的管道和交易感到非常興奮。這些交易正是我們所說的，我們希望以材料為基礎的骨材在現有市場上處於領先地位。

And so the majority of those are those smaller deals that we are very good at acquiring and integrating and capturing those synergies immediately, which includes our ability to do dynamic pricing. So if you look at the White Bakkin and Grays and EpiMarks and Sonsand the Parker Pit and the Rock Resources, I mean all of those are heavy on the material side, adjacent. I mean, well, they're not adjacent. They are in our existing strategic market areas.

因此，其中大部分都是較小的交易，我們非常擅長收購、整合和立即捕捉這些協同效應，其中包括我們進行動態定價的能力。因此，如果你看看 White Bakkin、Grays、EpiMarks 和 Sons 以及 Parker Pit 和 Rock Resources，我的意思是，所有這些資源在材料方面都很重，相鄰。我的意思是，好吧，它們並不相鄰。它們位於我們現有的策略市場領域。

And so yes, those will complement our continued efforts as we implement dynamic pricing and other synergies that are right in those existing markets. The one over this last weekend in Energy Services is a company that we've been looking at for quite some time. It's as you know, as you've seen in our performance, liquid Asphalt is one of our better profit margins businesses.

因此，是的，隨著我們在現有市場上實施動態定價和其他協同效應，這些將補充我們持續的努力。上週末能源服務公司是我們關注已久的公司。正如您所知，正如您在我們的業績中看到的那樣，液體瀝青是我們利潤率較高的業務之一。

And this happens to be in one of the areas where we consume and use a lot of liquid Asphalt in a region, the Northwest region, having terminals in Washington and Oregon of one of our highest profit regions that we've got EBITDA margins. And so yes, it will definitely complement our vertical integration, as it relates to our Asphalt and contracting services. So Albina is going to be a great addition to our group of family of companies. So very excited about it, Trey.

這恰好是我們消耗和使用大量液體瀝青的地區之一，即西北地區，在華盛頓和俄勒岡州擁有碼頭，這是我們 EBITDA 利潤率最高的利潤地區之一。所以，是的，它肯定會補充我們的垂直整​​合，因為它涉及我們的瀝青和承包服務。因此，Albina 將成為我們公司集團的重要補充。對此非常興奮，特雷。

Sounds good. Thank you, Brian. I'll turn it over.

聽起來不錯。謝謝你，布萊恩。我會把它翻過來。

Garik Shmois, Loop Capital.

Garik Shmois，Loop Capital。

Oh, hi, thanks. Wondering if you could speak to with a little bit more detail, just your observation that you expect pricing to remain above costs moving forward. You know, as we get closer to 2025 any any thoughts as to how you expect pricing and cost to, to track next year?

哦，嗨，謝謝。想知道您是否可以更詳細地談談您的觀察，即您預計未來定價將保持高於成本。您知道，隨著 2025 年的臨近，您對明年的定價和成本預期如何追蹤有什麼想法嗎？

Yeah, thanks, Gary. So yeah, directionally, I can just share kind of what we've mentioned in our prepared remarks and we'll be giving a more detailed formal guidance in February. But the demand -- the fundamentals are still there. You look at our backlog. I mean it's up and overall. And you look at the funding levels at all the state DOTs and the local public works departments, and we sit down and talk to some of those directors in the states that we're working in and the budgets are strong. And so the demand environment is very healthy.

是的，謝謝，加里。所以，是的，從方向上來說，我可以分享我們在準備好的評論中提到的內容，我們將在二月提供更詳細的正式指導。但需求——基本面仍然存在。你看看我們的積壓訂單。我的意思是，總體而言。你會看到所有州交通部和地方公共工程部門的資金水平，然後我們坐下來與我們工作所在州的一些主管進行交談，並且預算充足。因此需求環境非常健康。

And the challenges that we had this year in our volumes was really that fundamental change at how we're looking at work, what jobs we're bidding, which customers that we're doing business with. And we really needed to reset that as part of our quality over quantity at the same time of raising our prices for materials in those high single digits. So we see that momentum carrying forward.

今年我們面臨的挑戰實際上是我們看待工作的方式、我們競標的工作以及我們與哪些客戶開展業務的根本性變化。我們確實需要重新調整這一點，作為我們質量重於數量的一部分，同時將材料價格提高到高個位數。所以我們看到這種勢頭在繼續發展。

We talked about that hard work of resetting our customer base and narrowing the projects behind us. We're going to maintain a very disciplined approach to bidding and continue to have our quality over quantity. And we do see that we -- we're still in those, I would consider early innings of implementing our dynamic pricing and the more sophisticated rollout of our sales training and dashboards that we're working on. That's all still in play. That self-help is absolutely something that we're very focused on at Knife River.

我們談到了重置我們的客戶群和縮小我們背後的專案的艱苦工作。我們將保持非常嚴格的投標方式，並繼續專注於品質而不是數量。我們確實看到，我們仍然處於這些狀態，我會考慮實施動態定價的早期階段，以及我們正在開發的銷售培訓和儀表板的更複雜的推出。這一切仍在上演。這種自助絕對是我們 Knife River 非常關注的事情。

So directionally, we feel like volumes are going to be more reflective of the overall market, and we think the market is very healthy by looking at our backlog and DOT budgets and that the pricing momentum coupled with the efforts that our pit crews have been out working on and really uncovering, Garik, is that there are some opportunities for us.

因此，從方向上看，我們認為銷售將更能反映整個市場，並且透過查看我們的積壓訂單和 DOT 預算以及定價勢頭以及我們維修人員的努力，我們認為市場非常健康加里克，我們正在努力並真正發現的是我們有一些機會。

And I think if you talk to our local management teams, the boots on the ground out in these operations, they would tell you that they think there is more upside in margin expansion from our PIT Crew activities and really focusing on our production costs and reducing our downtime. And that's as much of a focus as dynamic pricing has been. And so all that to say that directionally, we feel very comfortable, confident next year that we will see a regain in volumes and that our pricing discipline will outpace the costs.

我認為，如果你與我們當地的管理團隊交談，他們會告訴你，他們認為我們的 PIT Crew 活動在利潤率擴張方面有更多的好處，並且真正關注我們的生產成本並降低成本。時間。這與動態定價一樣受到關注。因此，從方向上來說，我們感到非常放心，有信心明年我們將看到銷售的回升，並且我們的定價紀律將超過成本。

Okay. That's encouraging. Then just two volume of follow up. So one was there any weather impacts in the quarter? Just given, it's been such a theme here over the last several weeks in earning season and then just a clarification on the revenue guidance. You, you kept the midpoint unchanged. Is it fair to assume that the acquisitions in the fourth quarter are kind of the offset for the lower lower volumes?

好的。這令人鼓舞。然後只有兩卷後續。那麼本季有天氣影響嗎？剛剛給出，這是過去幾週財報季節的一個主題，然後只是對收入指導的澄清。你，你保持中點不變。假設第四季的收購可以抵銷銷售下降是否公平？

Okay. Yeah. So we absolutely I mean we have operations down in Texas. And as you've heard from the last week, it was very wet, very bad weather down there. So yes, I mean, we -- our sales that we had forecasted when we updated our guidance at the end of the second quarter, did have an impact from lower sales out of our Honey Creek facility. And just overall operations, both ready-mix and contracting services, Asphalt production down in Texas. It's not a huge piece of our portfolio, but absolutely, it had an impact. And so that did play into our lower volumes for the quarter. And so as far as guide on the acquisitions, Nathan, do you want to take that question?

好的。是的。所以我們絕對是說我們在德克薩斯州有業務。正如您上週所聽到的，那裡非常潮濕，天氣非常惡劣。所以，是的，我的意思是，我們在第二季末更新指引時所預測的銷售額確實受到了 Honey Creek 工廠銷售額下降的影響。德克薩斯州的整體運營，包括預拌和承包服務，瀝青產量均下降。它在我們的投資組合中並不佔很大一部分，但絕對產生了影響。因此，這確實導致了我們本季銷量的下降。至於收購指南，內森，你想回答這個問題嗎？

Yeah, Garik, I think your question was along for the revenue guide. We do have that still at at the same midpoint. And so the question there acquisitions, do we see revenue in the fourth quarter. Really, as we talked about a little bit in the prepared remarks in the fourth quarter for us when we bring these deals on, oftentimes, this is towards the end of the year, the off-season for us. So the revenue related to those acquisitions would be nominal in the fourth quarter.

是的，加里克，我認為你的問題是針對收入指南的。我們確實仍處於同一中點。因此，關於收購的問題是，我們是否會在第四季看到收入。確實，正如我們在第四季度為我們準備的演講中談到的那樣，當我們進行這些交易時，通常情況下，這已經是年底了，對我們來說是淡季。因此，與這些收購相關的收入在第四季度將是名義上的。

Okay. No, that's helpful. I'll pass it on. Best of luck..

好的。不，這很有幫助。我會把它傳遞下去。祝你好運..

Ian Zaffino, Oppenheimer.

伊恩·扎菲諾，奧本海默。

Hi, great. Thank you very much. I wanted to ask you on the M&A front, you know, as you're looking and as you were talking, how do we think about maybe the mix of, you know, potential acquisition targets that you're looking at? You know, is it going to be more services materials? If so, what type of materials is going to be vertically integrated? Maybe any color you could kind of give there. So we know where the business is headed. Thank you.

嗨，太好了。非常感謝。我想問您在併購方面，您知道，當您正在尋找和談論時，我們如何考慮您正在考慮的潛在收購目標的組合？你知道，會提供更多的服務資料嗎？如果是這樣，什麼類型的材料將被垂直整合？也許你可以在那裡提供任何顏色。所以我們知道業務的發展方向。謝謝。

Thanks, Ian. Yeah. So we've got a slide in the deck that kind of shows what our pipeline looks like, both in deal size and markets, but I'll talk specifically about what product lines that we're looking at. And so Ian, we have a robust pipeline with frankly, deals in every part of that pyramid from the smaller, less than $25 million deals, the deals that are in excess of $200 million. And so we are -- those are in our pipeline, and we currently have due diligence completed on a number of those.

謝謝，伊恩。是的。因此，我們在幻燈片中展示了我們的管道情況，包括交易規模和市場，但我將具體討論我們正在關注的產品線。因此，伊恩，坦白說，我們有一個強大的管道，涉及金字塔各個部分的交易，從規模較小的、低於 2500 萬美元的交易，到超過 2 億美元的交易。所以我們 - 這些正在我們的管道中，我們目前已經完成了對其中一些的盡職調查。

In the markets, we absolutely, again, continue to be focused on those markets that we're currently in or adjacent to one of our existing states. And as we've discussed in the past, oftentimes, if you look at the markets that we play in, that our local competitors are typically those regional family-owned, vertically integrated type of companies.

在市場上，我們絕對會再次繼續關注我們目前位於或毗鄰現有州之一的市場。正如我們過去所討論的，如果你看看我們所處的市場，你會發現我們的本地競爭對手通常是那些區域性家族企業、垂直整合類型的公司。

And so contracting services does not at all scare us. In fact, we look forward to those types of opportunities because of the pull-through of either their existing aggregates that come with the deal or that we can supplement and complement with our existing operations. And so I would say that the pipeline is very diverse, both in project size.

因此，承包服務根本不會嚇到我們。事實上，我們期待這些類型的機會，因為交易帶來的現有總量的拉動，或者我們可以補充和補充我們現有的業務。所以我想說，無論是在專案規模上，管道都非常多樣化。

I can tell you that we have deals that we're looking at in every one of our regions, and that we've got deals that have one of our product lines, whether that's aggregates, ready-mix, asphalt contracting services, as you saw over the weekend liquid asphalt, all of those are in play and that they all are in our current pipeline with really an emphasis as it has been with our edge strategy all along is to continue to grow those higher upstream material -- has a higher-margin upstream material businesses as -- with aggregates being leading that pack. So that's kind of a glimpse into our pipeline and our strategy.

我可以告訴你，我們正在每個地區尋找交易，並且我們的交易涉及我們的產品線之一，無論是骨料、預拌混凝土、瀝青承包服務，因為您週末看到液體瀝青，所有這些都在發揮作用，而且它們都在我們當前的管道中，並且真正受到重視，因為我們的優勢戰略一直是繼續種植那些更高的上游材料- 具有更高的-上游材料業務的利潤率——其中骨料處於領先地位。這就是我們的管道和策略的一瞥。

Okay. Thank you. And then, I guess we're kind of touching upon a 20% margin in this past quarter. Obviously, it's a strong, strong part of the year seasonality. But how are we thinking now about that 20% margin, you know, both in what you've been able to, to generate and then large expansion you're looking to do, but then maybe offset by some of these higher SG&A costs and, and some other costs. Thanks.

好的。謝謝。然後，我想上個季度我們的利潤率可能會達到 20%。顯然，這是一年中季節性很強的部分。但我們現在如何考慮 20% 的利潤，你知道，無論是你已經能夠產生的，還是你想要進行的大規模擴張，但隨後可能會被一些更高的 SG&A 成本和，以及一些其他費用。謝謝。

Yeah. Well, I think we continue to be very pleased with the progress we’re making with the edge initiatives. We laid out that we wanted to be at 15% by 2025, and we achieved that goal 2 years early. If you look at our year-to-date performance, we’re up 50 basis points year-to-date overall. And obviously, we’ve had the headwind that we knew about in Energy Services. If you take out Energy Services and look at the geographic segments, I mean, our EBITDA margin improvement for the nine months has been 170 basis points.

是的。嗯，我認為我們仍然對邊緣計劃所取得的進展感到非常滿意。我們提出希望在 2025 年達到 15%，並且我們提前兩年實現了這一目標。如果你看看我們今年迄今為止的表現，我們今年迄今為止的整體表現上漲了 50 個基點。顯然，我們在能源服務領域遇到了眾所周知的逆風。如果你除去能源服務並查看地理細分市場，我的意思是，我們的 EBITDA 利潤率在過去 9 個月內提高了 170 個基點。

So we absolutely feel committed that 20% target that we’ve set for our long-range goal is achievable. I can tell you that all of our initiatives internally are geared to drive towards that flag of 20%. We’ve talked about there’s multiple paths to get there. We’re focused on all of them. Growth is a part of that. Our PIT Crews is a big part of that, continuation of dynamic pricing is a big part of that.

因此，我們絕對相信我們為長期目標設定的 20% 目標是可以實現的。我可以告訴你，我們所有的內部措施都是為了實現 20% 的目標。我們已經討論過有多種途徑可以實現這一目標。我們專注於所有這些。成長是其中的一部分。我們的 PIT 工作人員是其中的重要組成部分，動態定價的延續也是其中的重要組成部分。

And so we’re looking at all regions, all product lines. And yes, we are committed to that 20% long term, knowing that we continue to make progress this year and have made tremendous amount of progress in the short amount of time since we’ve really rolled out the Edge initiative. So very focused on that, Ian.

因此，我們正在關注所有地區、所有產品線。是的，我們致力於實現 20% 的長期目標，因為我們知道今年我們將繼續取得進展，並且自從我們真正推出 Edge 計劃以來，在短時間內就取得了巨大進展。所以非常專注於此，伊恩。

All right. Thank you very much.

好的。非常感謝。

Sherif El-Sabbahy, Bank of America Merrill Lynch.

Sherif El-Sabbahy，美國銀行美林公司。

Hi, good morning. I just wanted to touch on capital allocation. You noted that the M&A pipeline is quite robust and diverse but with leverage as it stands well below the long term average target and substantial cash on hand. Should we think of that is earmarked for M&A that you have in the pipeline or is there any shift shifts on the margin with regards to capital allocation priorities.

嗨，早安。我只想談談資本配置。您指出，併購管道相當強勁且多樣化，但具有槓桿作用，因為其遠低於長期平均目標，並且手頭上有大量現金。我們是否應該考慮到這是專門用於正在進行的併購的，或者在資本配置優先順序方面是否存在任何邊際變化。

Yeah. Thank you for the question. So first of all, again, very excited about what we’ve seen here in the third and fourth quarter with where we’re putting our dollars and putting those to work with, both maintaining our assets and improvements for them and then as well as the growth that we’ve got identified. So the question being, do we anticipate any shift in where those dollars will go to with what we’ve got as far as net leverage and cash on the balance sheet.

是的。謝謝你的提問。首先，我們對第三季和第四季所看到的情況感到非常興奮，我們投入資金並投入使用，既維護我們的資產並對其進行改進，然後作為以及我們已經確定的增長情況。所以問題是，我們預計這些美元的去向是否會隨著我們資產負債表上的淨槓桿率和現金而改變。

As I mentioned in the prepared remarks, very strong position for the ompanyy to put those dollars to work in both of those categories. So what you’ll see going forward, most likely is for us to continue to maintain our assets in those improvements, and we’ve indicated that, that’s 5% to 7% of revenue for the year and then also looking to grow. We mentioned the $129 million for our acquisitions and then $20 million for organic, incremental to that.

正如我在準備好的演講中提到的，該公司非常有實力將這些資金投入這兩個類別。因此，您將看到，未來我們最有可能在這些改進中繼續維持我們的資產，我們已經表明，這佔當年收入的 5% 到 7%，然後還有尋求成長。我們提到了 1.29 億美元的收購，以及 2,000 萬美元的有機增量收購。

So for the fourth quarter, if we have additional acquisition’ coming In, that would be incremental to the $129 million. As far as shifting to capital returns, cash returns I think the best dollars for us to spend are those on maintaining our business and growing our business with the opportunities we see forward. Thank you.

因此，對於第四季度，如果我們有額外的收購，那麼金額將增加到 1.29 億美元。至於轉向資本回報、現金回報，我認為對我們來說最好的支出是用於維持我們的業務並利用我們看到的未來​​機會來發展我們的業務。謝謝。

Chris Ellinghaus, Siebert Williams Shank.

克里斯埃林豪斯、西伯特威廉斯尚克。

Hey, everybody. How are you? Brian, can you just talk about the Northwest backlog? And what's contained in the decline, is it timing? Is there some product mix? What's going on there?

嘿，大家。你好嗎？布萊恩，你能談談西北航空積壓的情況嗎？下降包含了什麼，是時機嗎？有一些產品組合嗎？那裡發生了什麼事？

Yeah. So we had a large impact job down in Southern Oregon called the Foothills project. And so really, if you look at our last year's backlog, it's the one that's abnormally high. You look at where we were at in '22 at the end of the third quarter or '21, we're actually higher today than we were in those years. And so it's not alarming that where our backlog is at. I think as we're comparing it to a year where we had a large impact project down in Southern Oregon.

是的。因此，我們在俄勒岡州南部開展了一項影響巨大的工作，稱為山麓計畫。事實上，如果你看看我們去年的積壓訂單，你會發現這是異常高的。你看看我們在 22 年第三季末或 21 年的情況，我們今天實際上比那些年要高。因此，我們的積壓情況並不令人擔憂。我認為，當我們將其與我們在俄勒岡州南部進行大型影響計畫的一年進行比較時。

And so I think our teams are very focused. The work that we've got is very diverse in the Northwest region. And we talked about before, Chris, we have that unique ability to flex between the private and the public work. And we also have a lot of work right now coming up out of our prestressed facilities. And so nothing over alarming on where we are as it sits today on backlog.

所以我認為我們的團隊非常專注。我們在西北地區所做的工作非常多元化。我們之前談過，克里斯，我們擁有在私人和公共工作之間靈活切換的獨特能力。我們的預力設施現在也有很多工作要做。因此，我們目前的積壓情況並沒有什麼比這更令人擔憂的了。

Okay. Do you have any color on when this Wyoming wind project might come back around?

好的。您對懷俄明州風電計畫何時恢復有什麼看法嗎？

Yeah, it's not been canceled. It's just been delayed. We thought we were going to start, some, aggregate production and supply in the third quarter and typically in the fourth quarter, that part of the, the world you're not doing a lot of work anyway. Sometimes you might get a little bit of work in there but it's really just been shifted into next year, Chris.

是的，沒有被取消。只是被推遲了而已。我們認為我們將在第三季度（通常是第四季度）開始聚合生產和供應，無論如何，世界上的這一部分你並沒有做很多工作。有時你可能會在那裡做一些工作，但它實際上只是被轉移到明年，克里斯。

Okay. Sometime next year. Nathan, can you talk about in, in the M&A you know what, what's your funding strategy? And you know what are, what are the target seeking in terms of compensation?

好的。明年某個時候。內森（Nathan），您能談談在併購方面您的融資策略是什麼嗎？你知道目標在補償上尋求什麼嗎？

Yeah. So our funding strategy really does relate to two areas as of now. As we've talked about, first, we've got cash on the balance sheet. We started the year with $200-and-some million in cash. We produce cash flows from operations. I think you can use EBITDA as a guide for that where we have utilized a good portion of that for the two buckets I talked about earlier. So anticipating ending the year here, absent any incremental acquisitions we do, with cash on hand. So that would be one funding source. Ended the quarter at 1 times net leverage, our target there is 2.5 times.

是的。因此，到目前為止，我們的融資策略確實涉及兩個領域。正如我們所討論的，首先，我們的資產負債表上有現金。年初我們有超過 200 萬美元的現金。我們透過經營產生現金流。我認為您可以使用 EBITDA 作為指南，我們已經將其中的很大一部分用於我之前談到的兩個桶。因此，預計今年將在今年結束，如果我們沒有進行任何增量收購，手頭上有現金。因此，這將是一種資金來源。本季末淨槓桿率為 1 倍，我們的目標是 2.5 倍。

So again, having that availability of utilizing the balance sheet and debt to grow. When we look at other options and that if the deals were large or if the owner was interested in that, that's a hypothetical, we potentially would. But really, our funding sources would come from cash sitting on the balance sheet, but that to work and then moving towards our target of 2.5 times as we grow our acquisitions.

再說一遍，可以利用資產負債表和債務來成長。當我們考慮其他選擇時，如果交易規模很大或所有者對此感興趣，這是一個假設，我們可能會這樣做。但實際上，我們的資金來源將來自資產負債表上的現金，但隨著我們收購規模的擴大，這些現金將發揮作用，然後朝著我們 2.5 倍的目標邁進。

I guess another way to ask the question. Historically, you've done a lot of these family-owned businesses, right? There must be some tax considerations in how they're seeking to be paid. Are they looking for any stock in their transactions or other tax advantages?

我想用另一種方​​式來問這個問題。從歷史上看，您經營過很多這樣的家族企業，對吧？他們尋求付款方式時必須考慮一些稅務因素。他們是否在交易中尋求任何股票或其他稅收優惠？

We have had instances in the past where we have done deals that some owners have interested in stock. We have accommodated that. So if there was an owner that came forward with that interest again, we would take a look at it or if the deal, but we'll certainly be looking at the metrics of the transaction to make sure that it makes sense for us. But yes, there are times when that makes sense. And maybe for them too, to have a continued interest, if they're part of it, the deal going forward to see how we perform and benefit from that as well. So yes, Chris, we are open to that also.

過去，我們曾經遇到一些業主對股票感興趣的交易。我們已經適應了這一點。因此，如果有一位所有者再次提出這種興趣，我們會考慮它或是否進行交易，但我們肯定會查看交易的指標，以確保它對我們有意義。但是，是的，有時這是有道理的。也許對他們來說，如果他們是其中的一部分，也會有持續的興趣，我們會繼續關注我們的表現並從中受益。所以，是的，克里斯，我們對此也持開放態度。

Okay. One last question. About the due diligence and M&A fee expense portion of the last few periods, have you considered excluding that from your calculations given that they're sort of irregular and sort of non -- I guess just not -- they're not regular. So have you thought about excluding them from your adjusted numbers

好的。最後一個問題。關於過去幾個時期的盡職調查和併購費用部分，您是否考慮過將其從您的計算中排除，因為它們有點不規則，有點不——我想只是沒有——它們不規則。那麼您是否考慮過將它們排除在調整後的數字之外

Yeah, I think if a deal was transformational or there were certain adjustments that need to be made for GAAP purposes, we would maybe consider doing adjusting. For the deals that we currently have, those are right within the size that we would expect, as Brian mentioned earlier, and so for those, they're recurring, as we take a look at the rules. And so for those, we have not done an adjustment, but Chris, going forward, depending upon the size of the deal, we take a look at that and of course, communicate that to the investing public as to why we're making that change of that adjustment.

是的，我認為如果一項交易是變革性的，或者需要出於公認會計原則的目的進行某些調整，我們可能會考慮進行調整。對於我們目前擁有的交易，這些交易的規模正好在我們預期的範圍之內，正如布萊恩之前提到的那樣，因此對於這些交易，當我們查看規則時，它們會重複出現。因此，對於這些，我們還沒有進行調整，但是克里斯，展望未來，根據交易的規模，我們會對此進行研究，當然，也會向投資公眾傳達我們為什麼要這樣做該調整的變化。

Same as same is true. I presume of your thoughts on transition costs.

同理同理也是如此。我推測您對轉型成本的想法。

Yeah. So like there’s – if there’s integration, I think what you’re getting at there, Chris, if there’s integration costs or something with transitioning to – bringing one of these acquisitions on board, it would be encompassing to not just be, for example, third-party due diligence, we would look at what the total cost is associated with that acquisition.

是的。因此，就像——如果有整合，我想你會得到什麼，克里斯，如果有整合成本或過渡到——進行其中一項收購對於董事會來說，這不僅包括第三方盡職調查，我們還會研究與該收購相關的總成本。

Right? Got you. Thanks a lot. Thank you, Chris.

正確的？明白你了。多謝。謝謝你，克里斯。

(Operator Instructions)

（操作員說明）

John Ramirez, D.A. Davidson.

約翰·拉米雷斯，D.A.戴維森。

Thank you for your time. Looking, hey, how's it going? How are you guys looking for? Do you mind walking through perhaps your 54 or five large states and seeing where some of that growth and for 2025 will come and where you see some challenges perhaps in context of, you know, dot large projects being announced as well as some of your initiatives of looking for pricing over volume.

感謝您抽出時間。看看，嘿，怎麼樣？你們怎麼找？您是否介意走遍您的54 或5 個大州，看看2025 年的一些增長將會出現在哪裡，您會在哪裡看到一些挑戰，也許是在您知道的、正在宣布的大型項目以及您的一些舉措的背景下尋找定價而不是數量。

Yeah. John, I appreciate that. And so I can tell you that's an easy one at the end there, is we're looking for price over volume and continue to roll out our dynamic pricing in all of our states, all 14 states. Obviously, the Northwest region is the furthest along in that initiative. But we are rolling that out in every of our -- all of our product lines, major product lines, aggregates, ready-mix and asphalt in all 14 of our states. If you look at specifically contracting services, we've got a slide in our deck on backlog.

是的。約翰，我很感激。所以我可以告訴你，最後這很簡單，我們正在尋找價格而不是數量，並繼續在我們所有的州，所有 14 個州推出我們的動態定價。顯然，西北地區是該倡議走得最遠的地區。但我們正在所有 14 個州的所有產品線、主要產品線、骨材、預拌和瀝青中推廣這一點。如果您查看特定的承包服務，我們的幻燈片中有一張關於積壓的幻燈片。

And the Mountain region continues to see a very healthy bid letting schedule. They're they've got 12% more backlog than they had at this time last year. And those in particular, are looking very strong as a lot of the central states of Nebraska, Iowa, Minnesota, Texas, those have very strong DOT budgets. I mean if you look across the entire country and including all 14 of our states, I mean, they're all at or near record levels. I mean there's going to be timing of DOT budgets as they work through some legislative issues and up their funding in states like Oregon and so there could be a lull for a year or two.

山區的招標時間表仍然非常健康。他們的積壓訂單比去年同期多了 12%。尤其是那些看起來非常強勁的州，因為內布拉斯加州、愛荷華州、明尼蘇達州、德克薩斯州等許多中部州的交通部預算非常強勁。我的意思是，如果你縱觀整個國家，包括我們所有 14 個州，我的意思是，它們都處於或接近創紀錄的水平。我的意思是，隨著交通部解決一些立法問題並增加俄勒岡州等州的資金，交通部的預算將會有一定的時間安排，因此可能會有一兩年的平靜期。

But keep in mind, John, as you all know, the roads have got to get repaired. The bridges have got to get repaired. And the more important thing there to look at is what is the scorecard, what is the -- your report card look like for infrastructure in these states. And you talked to the DOT directors. And the IAG money is helpful as that's been is far from fixing the problem.

但請記住，約翰，眾所周知，道路必須修理。橋樑必須修理。更重要的是要看什麼是記分卡，這些州的基礎設施的成績單是什麼樣子的。您也與交通部主管進行了交談。IAG 的資金很有幫助，因為這遠遠不能解決問題。

And so these states that might have a little bit of a dip for a year or two are frantically looking working with our legislators to try to figure out how to fund the next batch of projects. In many of the states, I mean, like Texas and Minnesota have just recently done that. So every one of the states, I mean, I could go state by state, but I won't but they look strong when it comes to infrastructure funding. Keep in mind, I mean, we have a heavy influence in Hawaii and Alaska from military spending, and that continues to be a very bright spot for us.

因此，這些可能會在一兩年內出現一些下滑的州正在瘋狂地尋求與我們的立法者合作，試圖找出如何為下一批項目提供資金。我的意思是，在許多州，例如德克薩斯州和明尼蘇達州最近剛剛這樣做了。所以我的意思是，我可以逐州去，但我不會，但在基礎設施資金方面，他們看起來很強大。請記住，我的意思是，我們在夏威夷和阿拉斯加的軍事開支具有重大影響，這對我們來說仍然是一個非常亮點。

And some of those projects that we thought would maybe get going this year in a little bit larger way have been delayed. They're not postponed or not canceled, the big dry dock -- submarine dry dock in Hawaii, there's a few months delay, but certainly going to have a lot of volumes going on that project as well as the base up in Anchorage.

我們認為今年可能會以更大的方式開展的一些項目已經被推遲。它們沒有被推遲或取消，夏威夷的大型乾船塢——潛艇乾船塢，有幾個月的延遲，但肯定會有大量的工程正在進行該項目以及安克雷奇的基地。

And so good funding, military, public funding. And then as we've talked about, data centers, wind mills, private work is kind of changes as you look at each individual state, each individual region. But overall, next year, certainly looking to see strong tailwinds in funding and volumes returning back to more of the market conditions.

等等良好的資金、軍事、公共資金。然後，正如我們所討論的，資料中心、風車、私人工作都會發生變化，因為你會看到每個州、每個地區。但總體而言，明年肯定會看到資金和交易量的強勁推動力更多地回歸到市場狀況。

Got it. And you mentioned something about your pre stress activity contributions. Could you talk more about that and see what the ramp looks like going forward?

知道了。你提到了一些關於你的壓力前活動貢獻的事情。您能詳細談談這個問題並看看未來的坡道是什麼樣子嗎？

Yeah. No, we're very excited about the progress the new facility in Spokane, Washington has been making. We commissioned that earlier in the year. It's up to full operation. I think it's actually outperforming some of the models that we put together both from a capacity standpoint, our labor costs. And the good news with that is that the demand continues to be strong in premanufactured concrete building solutions, whether that's for structural bridge builders or architectural wall panels.

是的。不，我們對華盛頓斯波坎新工廠所取得的進展感到非常興奮。我們在今年早些時候委託了該項目。就到了全面運作的時候了。我認為，從產能和勞動成本的角度來看，它實際上優於我們整合的一些模型。好消息是，對預製混凝土建築解決方案的需求持續強勁，無論是結構橋樑建造商還是建築牆板。

We really are seeing contractors gravitate towards that as a very affordable, sustainable building solution. And so anxious to host our Board of Directors, actually out in Spokane, Washington next week and show off that facility. And so it's performing exceptionally well and is really -- is helping contribute to those record EBITDA margin, EBITDA performance in the Northwest region.

我們確實看到承包商傾向於將其視為非常實惠、可持續的建築解決方案。我們非常渴望下週在華盛頓州斯波坎舉辦我們的董事會並展示我們的設施。因此，它的表現非常出色，而且確實正在為西北地區創紀錄的 EBITDA 利潤率和 EBITDA 業績做出貢獻。

And one before I get to Nathan, the industry has suggested missing villages in 2025. What's your view on this coming.

在我採訪 Nathan 之前，業界建議在 2025 年取消村莊。您對此有何看法。

John, you broke up a little bit. Industry suggested what for 2025.

約翰，你們分手了一點。業界提出了 2025 年的建議。

I have pricing increases of mid single digits from what we heard from your peers. I'm just wondering what your thoughts on that.

根據我們從同行那裡聽到的消息，我的價格上漲了中個位數。我只是想知道你對此有何想法。

Yeah, I think directionally we would agree that the pricing momentum that we've seen this year and the continuation of our dynamic pricing focus in markets that we enjoy a number one or number two market position in which is about 75% of our volume. No, I think we would agree that pricing momentum is going to continue into 2025 and that we feel that it will outpace inflationary cost. So I would agree with that.

是的，我認為從方向上講，我們會同意今年看到的定價勢頭，以及我們在享有第一或第二市場地位（約占我們銷售的 75%）的市場中繼續動態定價的重點。不，我認為我們會同意定價勢頭將持續到 2025 年，我們認為它將超過通膨成本。所以我同意這一點。

Thank you. And Nathan just last one for me. From -- you guys had $267 million cash as of Q3. Is that taking into account what you guys spent on acquisitions during that month of the last month in September?

謝謝。內森只是我的最後一個。截至第三季度，你們擁有 2.67 億美元現金。這是否考慮到你們在 9 月最後一個月的收購支出？

It does take into account. So what you see on the balance sheet there and the cash flows through $930 million does take into account what we spend through $930 million. But these transactions that Brian mentioned earlier in October and November would be additional CapEx that would reduce that cash balance.

它確實考慮到了。因此，您在資產負債表上看到的以及 9.3 億美元的現金流確實考慮了我們 9.3 億美元的支出。但布萊恩早些時候在 10 月和 11 月提到的這些交易將是額外的資本支出，從而減少現金餘額。

And you see -- sorry, go ahead.

你看——抱歉，繼續吧。

So I was going to say, you can see from there, I mean we spent essentially $15 million in CapEx through $930 million, and the remainder of the $129 million we mentioned would have been spent in October and November, if that kind of helps you with the numbers, the $115 million then.

所以我想說，你可以從那裡看到，我的意思是我們在資本支出上花費了1500 萬美元到9.3 億美元，我們提到的1.29 億美元的其餘部分將在10 月和11 月花費，如果這對你有幫助的話從數字上看，當時是 1.15 億美元。

Perfect. Appreciate it. Thank you guys so much for the time. I hope that.

完美的。欣賞它。非常感謝你們抽出時間。我希望如此。

Thank you, John.

謝謝你，約翰。

And at this time, Mr Gray, we have no other questions. Please proceed, sir.

格雷先生，目前我們沒有其他問題了。請繼續，先生。

Yeah, I just want to thank everyone again for joining us today. We’re proud of our results and are excited about the long term opportunities at Knife River. We continue to make good progress on our edge goals and are well positioned to grow our company and deliver long term value for shareholders. We appreciate the interest and support.

是的，我想再次感謝大家今天加入我們。我們對我們的成果感到自豪，並對 Knife River 的長期機會感到興奮。我們繼續在我們的邊緣目標上取得良好進展，並處於有利地位來發展我們的公司並為股東創造長期價值。我們感謝您的關注與支持。

And with that, I’ll turn the call back over to you.

然後，我會將電話轉回給您。

Thank you, sir. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. And at this time, we do ask you to please disconnect your lines. Enjoy the rest of your day.

謝謝您，先生。女士們、先生們，今天的電話會議到此結束。再次感謝您的出席。此時，我們確實要求您斷開線路。享受你一天剩下的時間。