Louisiana-Pacific Corp (LPX) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the First Quarter 2023 Louisiana-Pacific Corporation's Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 Louisiana-Pacific Corporation 2023 年第一季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Aaron Howald.

我現在想把會議交給今天的發言人 Aaron Howald。

Thank you, operator. Good morning, everyone, and thank you for joining us to discuss LP's results for the first quarter of 2023 and our outlook for the second quarter. As the operator said, my name is Aaron Howald, and I am LP's Vice President of Investor Relations and Business Development. I'm joined this morning by Brad Southern, LP's Chief Executive Officer; and Alan Haughie, LP's Chief Financial Officer.

謝謝你，運營商。大家早上好，感謝您加入我們討論 LP 2023 年第一季度的業績以及我們對第二季度的展望。正如接線員所說，我的名字是 Aaron Howald，我是 LP 的投資者關係和業務發展副總裁。今天早上，LP 的首席執行官 Brad Southern 加入了我的行列； LP 的首席財務官 Alan Haughie。

During this morning's conference call and webcast, we will refer to an accompanying presentation that is available on LP's IR web page, which is investor.lpcorp.com. Our 8-K filing is also available there along with our earnings press release and other materials.

在今天上午的電話會議和網絡廣播中，我們將參考 LP 的 IR 網頁 investor.lpcorp.com 上提供的隨附演示文稿。我們的 8-K 文件以及我們的收益新聞稿和其他材料也可以在那裡獲得。

Today's discussion will contain forward-looking statements and non-GAAP financial metrics as described on Slide 2 and 3 of the earnings presentation. Rather than reading those statements, I incorporate them herein by reference. The appendix of the presentation also contains reconciliations that are further supplemented by this morning's 8-K filing.

今天的討論將包含前瞻性陳述和非 GAAP 財務指標，如收益演示幻燈片 2 和 3 中所述。我沒有閱讀這些陳述，而是通過引用將它們併入本文。演示文稿的附錄還包含對賬，今天上午的 8-K 文件進一步補充了對賬。

And with that, I'll turn the call over to Brad.

有了這個，我會把電話轉給布拉德。

Thanks, Aaron, and thank you all for joining us to discuss LP's results for the first quarter of 2023. Q1 demonstrated the value of our strategy in a challenging operating environment and an uncertain housing market.

謝謝 Aaron，也感謝大家加入我們討論 LP 2023 年第一季度的業績。第一季度展示了我們戰略在充滿挑戰的運營環境和不確定的房地產市場中的價值。

Compared to the first quarter of last year, single-family housing starts fell by almost 30% and commodity OSB prices fell by more than 75%. Despite this decline, we maintained flat Siding sales and generated positive EBITDA in our OSB segment, outperforming the underlying market. We are currently seeing encouraging signs of strength in housing, including improving commodity prices. And I am confident that LP's businesses will continue to outperform the market.

與去年第一季度相比，單戶住宅開工率下降近 30%，商品定向刨花板價格下降超過 75%。儘管出現這種下滑，但我們的壁板銷售額保持平穩，OSB 部門的 EBITDA 為正，表現優於基礎市場。我們目前看到了令人鼓舞的樓市走強跡象，包括大宗商品價格上漲。我相信 LP 的業務將繼續跑贏市場。

Page 5 of the presentation shows highlights for the quarter. In sum, a much softer housing market drove OSB prices far below last year's levels, with the obvious impact on sales, EBITDA and cash flow. Inflation appears to be easing somewhat. The cost for resins, (inaudible) and freight remain elevated, pressuring margins.

演示文稿的第 5 頁顯示了本季度的亮點。總而言之，房地產市場疲軟導致 OSB 價格遠低於去年水平，對銷售額、EBITDA 和現金流產生明顯影響。通脹似乎有所緩和。樹脂（聽不清）和運費的成本仍然居高不下，給利潤率帶來壓力。

LP's businesses responded by outperforming the market, and we continue to invest in our growth. $584 million in sales was about half of the amount from Q1 of last year, with the vast majority of this difference the result of lower OSB prices. EBITDA of $66 million and earnings per share of $0.34 were much lower than last year, again, due to the difficult comp from last year's very high OSB prices. However, our results were above our previous guidance due to disciplined and efficient operations in OSB and flat Siding revenue.

LP 的業務表現優於市場，我們繼續投資於我們的增長。 5.84 億美元的銷售額約為去年第一季度銷售額的一半，其中絕大部分差異是 OSB 價格下降的結果。 EBITDA 為 6600 萬美元，每股收益為 0.34 美元，遠低於去年，這也是由於去年非常高的 OSB 價格難以計算。然而，由於 OSB 的紀律和高效運營以及持平的壁板收入，我們的結果高於我們之前的指導。

LP invested $114 million in CapEx in Q1, mostly for the conversion of Sagola to Siding. Alan will discuss cash flow in more detail in a moment, but LP ended the quarter with $126 million in cash and just under $700 million in liquidity.

LP 在第一季度的資本支出中投資了 1.14 億美元，主要用於將 Sagola 轉換為 Siding。艾倫稍後將更詳細地討論現金流，但 LP 在本季度結束時擁有 1.26 億美元的現金和近 7 億美元的流動資金。

Safety and OEE were key highlights for the quarter. Safety and efficiency can never be taken for granted, especially in a difficult operating climate of a soft market. This makes our safety and OEE performance in the quarter to be remarkable. Both businesses saw a 2 percentage point increase in OEE, and both businesses had a single recordable injury in the quarter. Our goal, of course, is 0 injuries and 2 injuries in the quarter is 2 too many. But while we work to continuously improve mill safety, it is nice to pause and recognize exceptional performance.

安全和 OEE 是本季度的主要亮點。安全和效率永遠不能被視為理所當然，尤其是在疲軟的市場艱難的經營環境中。這使得我們在本季度的安全和 OEE 表現非常出色。這兩家企業的 OEE 都增加了 2 個百分點，並且這兩家企業在本季度都有一次可記錄的傷害。當然，我們的目標是 0 傷，本節 2 傷太多了。但是，在我們努力不斷提高工廠安全性的同時，暫停一下並認識到卓越的性能是件好事。

In the Siding business, our Dawson Creek and Tomahawk mills each achieved 1 million injury-free work hours. And in OSB, the first quarter was the best quarterly [sector] results for the segment in more than 4 years.

在 Siding 業務中，我們的 Dawson Creek 和 Tomahawk 工廠分別實現了 100 萬次無傷害工時。在 OSB 中，第一季度是該部門 4 年多來最好的季度 [行業] 業績。

We obviously prefer the cash flow to higher OSB prices generated in the first quarter of last year, but it is gratifying to see the value generated by our OSB strategy even in a weaker market. Structural Solutions averaged 46% of OSB volume in Q1, but exited the quarter well above 50% where it has remained. Structural Solutions contributes incremental margin regardless of commodity prices.

與去年第一季度產生的更高的 OSB 價格相比，我們顯然更喜歡現金流，但即使在疲軟的市場中，我們的 OSB 戰略也能產生價值，這令人欣慰。 Structural Solutions 在第一季度平均佔 OSB 銷量的 46%，但在本季度結束時仍遠高於 50% 的水平。無論商品價格如何，結構解決方案都會貢獻增量利潤。

In terms of capacity, rather than oversupply in soft market, we took market downtime managing our capacity flexibly. And despite the market-related downtime, as previously mentioned, we improved operational efficiency performance in OSB. As a result of this relentless focus on execution, the OSB segment stayed EBITDA positive despite the lowest prices we have seen since before COVID. I am very proud of the OSB team for the resolve and teamwork demonstrated by their Q1 performance.

在產能方面，我們沒有在市場疲軟時供過於求，而是採取了市場停工期來靈活管理我們的產能。儘管存在與市場相關的停機時間，但如前所述，我們提高了 OSB 的運營效率。由於這種對執行的不懈關注，儘管自 COVID 以來我們看到的最低價格，但 OSB 部門仍保持 EBITDA 正值。我為 OSB 團隊感到非常自豪，他們在第一季度的表現中表現出了決心和團隊合作精神。

On Slide 6, you can see an update on Siding product mix and growth relative to the market. On a trailing 12-month basis, single-family starts in the U.S. were down 18%, but Siding volume grew by 7% and prices were higher by 13%, driven by list price increases and improving mix. The pie charts on the right reinforce the improvements in mix within the quarter. While SmartSide volume fell by 9%, ExpertFinish volume grew by 26%.

在幻燈片 6 上，您可以看到有關 Siding 產品組合和相對於市場的增長的更新。在過去 12 個月的基礎上，美國的單戶住宅開工率下降了 18%，但在標價上漲和組合改善的推動下，壁板數量增長了 7%，價格上漲了 13%。右邊的餅圖加強了本季度內組合的改進。 SmartSide 銷量下降 9%，ExpertFinish 銷量增長 26%。

I should point out, just for avoidance of doubt, that while these 2 charts are on different time frames, with one being trailing 12 months and the other being Q1, the results are broadly the same over a variety of timescales. Any way you look at it, the story is basically the same. SmartSide is growing faster than the underlying market. And within that, the mix of ExpertFinish and other higher value-add products is growing faster still.

為避免疑義，我應該指出，雖然這 2 張圖表處於不同的時間範圍內，一張是尾隨 12 個月，另一張是第一季度，但在各種時間尺度上的結果大致相同。不管你怎麼看，故事基本上是一樣的。 SmartSide 的增長速度快於基礎市場。其中，ExpertFinish 和其他高附加值產品的組合增長得更快。

To illustrate this, Slide 7 shows normalized growth of volume and revenue for SmartSide Strand Siding relative to single-family housing starts over a longer period of time. As you can see, LP SmartSide is consistently growing well above the underlying housing market. So we're taking share, expanding addressable geographies and market categories, introducing new products and increasing our focus on the less volatile R&R market segment.

為了說明這一點，幻燈片 7 顯示了 SmartSide Strand Siding 相對於單戶住宅在較長時間內開工的數量和收入的正常增長。如您所見，LP SmartSide 的增長一直遠高於基礎房地產市場。因此，我們正在搶占市場份額，擴大可尋址的地域和市場類別，推出新產品，並更加關注波動較小的 R&R 細分市場。

The reason for this is clear. LP SmartSide is the best Siding product available. It looks great, has the durability of supporting 50-year warranty, is easy to install, is carbon negative and is available primed or prefinished at a price point that delivers value to installers and homeowners. As a result, we believe we have a long runway for growth ahead of us in Siding. To meet this demand, LP will continue to invest in capacity.

原因很明顯。 LP SmartSide 是最好的壁板產品。它看起來很棒，具有支持 50 年保修的耐用性，易於安裝，碳排放為負，並且可以以為安裝人員和房主帶來價值的價格提供底漆或預塗漆。因此，我們相信我們在 Siding 的增長面前還有很長的路要走。為了滿足這一需求，LP將繼續投資產能。

Slide 8 of the presentation provides an update for our capacity plan for Siding. I am happy to announce that LP's former OSB mill in Sagola, Michigan, pressed its first board of SmartSide in March. Sagola's conversion adds 330 million square feet of Siding capacity, bringing total Siding capacity to about 2.3 billion square feet and reducing total OSB capacity to about 4 billion square feet.

演示文稿的幻燈片 8 更新了我們的 Siding 容量計劃。我很高興地宣布，LP 在密歇根州 Sagola 的前 OSB 工廠於 3 月壓制了第一塊 SmartSide 板。 Sagola 的轉換增加了 3.3 億平方英尺的 Siding 容量，使 Siding 總容量達到約 23 億平方英尺，並將 OSB 總容量減少到約 40 億平方英尺。

Speaking of investing in Siding capacity, you may have seen our recent press release announcing that LP reached a definitive agreement to acquire the Wawa OSB mill from Forex. I'm happy to announce that the transaction was approved last week and closed yesterday. This investment contributes to our Siding strategy by adding to our conversion options and increasing our runway for future growth.

談到投資 Siding 產能，您可能已經看到我們最近的新聞稿，宣布 LP 達成最終協議，從 Forex 收購 Wawa OSB 工廠。我很高興地宣布，該交易上週獲得批准並於昨天關閉。這項投資通過增加我們的轉換選項和增加我們未來增長的跑道，有助於我們的 Siding 戰略。

Wawa is ideally located with access to labor, logistics and ample sustainable Aspen fiber and we are thrilled to engage with our new employees, the local community and First Nations there as we begin planning for the project to convert Wawa to manufacture SmartSide.

Wawa 地理位置優越，可以獲得勞動力、物流和充足的可持續 Aspen 纖維，我們很高興與我們的新員工、當地社區和那裡的原住民接觸，因為我們開始規劃將 Wawa 轉變為製造 SmartSide 的項目。

When converted, Wawa will become LP's largest single line Siding mill, adding roughly 400 million square feet of capacity and bringing total Siding capacity to about 2.7 billion square feet. We will provide more details as the project evolves. And with a purchase price of $80 million, our estimates of conversion costs and the lower execution risk associated with the existing facility, we believe this project will generate a higher return than the previously announced expansion of our Houlton main facility, which is why Wawa will jump the line ahead of Houlton's line 2.

轉換後，Wawa 將成為 LP 最大的單線 Siding 工廠，增加約 4 億平方英尺的產能，使 Siding 總產能達到約 27 億平方英尺。隨著項目的發展，我們將提供更多細節。鑑於 8000 萬美元的購買價格、我們對轉換成本的估計以及與現有設施相關的較低執行風險，我們相信該項目將產生比之前宣布的霍爾頓主要設施擴建更高的回報，這就是 Wawa 將在 Houlton 的 2 號線之前跳線。

We still plan to expand Houlton after the Wawa conversion as customer demand continues to grow. Converting Wawa and expanding Houlton would bring total Siding press capacity to 3 billion square feet, and the remaining conversion and expansion options we have already discussed could eventually bring total Siding capacity to about 5 billion square feet, more than double our current size.

隨著客戶需求的持續增長，我們仍計劃在 Wawa 轉換後擴展 Houlton。轉換 Wawa 和擴建 Houlton 將使 Siding 壓力機的總產能達到 30 億平方英尺，而我們已經討論過的其餘轉換和擴展選項最終可能使 Siding 的總產能達到約 50 億平方英尺，是我們目前規模的兩倍多。

And this is just press capacity. We are continuing to invest in growth of ExpertFinish or prefinished siding with our newest facility in Bath, New York, coming online in Q3 of this year.

這只是新聞能力。我們將繼續投資於 ExpertFinish 或預塗壁板的增長，我們在紐約巴斯的最新設施將於今年第三季度上線。

We are investing in our strategy for Siding and Structural Solutions, and we are confident that both have a long runway for future growth. While we are seeing encouraging signs as housing starts so far this year have been above full year consensus, the housing market is not out of the woods quite yet. Single-family starts were down nearly 30% in Q1 with inflation and mortgage rates impacting affordability, and Q2 is looking roughly the same.

我們正在投資我們的壁板和結構解決方案戰略，我們相信這兩者在未來增長方面都有很長的路要走。雖然我們看到令人鼓舞的跡象，因為今年迄今為止房屋開工率高於全年預期，但房地產市場尚未走出困境。由於通貨膨脹和抵押貸款利率影響負擔能力，第一季度單戶住宅的開工率下降了近 30%，第二季度看起來大致相同。

However, the encouraging signs in housing are beginning to be reflected in our order files. While channel inventories in Siding remain elevated, as is typical in the months following the end of the managed order file, we are past the Q1 peak in inventory. The Siding order file has seen a notable uptick in recent weeks. And OSB inventories are leaner as demand and prices have recently improved.

然而，住房方面令人鼓舞的跡像開始反映在我們的訂單文件中。雖然 Siding 的渠道庫存仍然很高，這在管理訂單文件結束後的幾個月裡很常見，但我們已經過了第一季度的庫存高峰期。最近幾週，壁板訂單文件顯著增加。由於近期需求和價格有所改善，定向刨花板庫存減少。

The macroeconomic environment remains challenging and near-term uncertainties remain in the housing and R&R markets we serve. But we remain very confident in our strategy, our execution, our high-performance carbon-negative products and, most importantly, all of LP's people will help us continue to outperform the underlying housing market, gain share and expand the markets we serve.

宏觀經濟環境仍然充滿挑戰，我們所服務的住房和 R&R 市場近期仍存在不確定性。但我們對我們的戰略、我們的執行、我們的高性能負碳產品仍然非常有信心，最重要的是，LP 的所有員工將幫助我們繼續跑贏基礎住房市場，獲得份額並擴大我們服務的市場。

And with that, I'll turn the call over to Alan to discuss LP's results in more detail.

有了這個，我會把電話轉給艾倫，更詳細地討論 LP 的結果。

Thanks, Brad. As outlined already, the U.S. housing and the broader macroeconomic environment are significantly more challenging than at this time last year. But I'm happy to report that LP responded by focusing on the factors within our control. We exceeded all components of our first quarter guidance, while the market numbers dominating the quarter are the 29% drop in single-family housing starts and a nearly 80% drop in North Central Random Lengths prices for commodity OSB.

謝謝，布拉德。如前所述，美國住房和更廣泛的宏觀經濟環境比去年此時更具挑戰性。但我很高興地報告，LP 的回應是關注我們控制範圍內的因素。我們超出了第一季度指導的所有組成部分，而主導該季度的市場數據是單戶住宅開工量下降 29%，商品定向刨花板的中北部隨機長度價格下降近 80%。

I'll refer to Slides 9 and 10 in the presentation to describe just how LP's Siding and OSB segments navigated the quarter before moving on to discuss LP's liquidity and capital allocation, including a little more on Wawa.

我將參考演示文稿中的幻燈片 9 和 10 來描述 LP 的 Siding 和 OSB 部門如何在本季度導航，然後再繼續討論 LP 的流動性和資本配置，包括更多關於 Wawa 的內容。

Slide 9 shows the first quarter year-over-year revenue and EBITDA comparison with the Siding. The volume was down 9%, a spread of 20 points over the drop in single-family starts. And this is due to the combined effects of ongoing share gains, expanded addressable markets and the fact that the majority, about 60%, of Siding products serve the repair and remodel market and shed applications.

幻燈片 9 顯示了第一季度與 Siding 的同比收入和 EBITDA 比較。數量下降了 9%，與單戶住宅開工量的下降幅度相差 20 個百分點。這是由於持續的份額增長、擴大的可尋址市場以及大多數（約 60%）的 Siding 產品服務於維修和改造市場以及棚屋應用這一事實的綜合影響。

And while overall volumes may have declined, ExpertFinish volumes did not. Rather, they increased by 26% year-over-year, which also helped the mix component of price. The $27 million reduction in volume at roughly a 50% variable margin cost the segment $14 million of EBITDA. Siding's average selling prices were 10% higher than the first quarter of last year. Roughly 6 points of the 10-point increase are from list price increases, namely the combined effect of this January's increase and last year's midyear increase, with the rest coming from favorable mix and lower rebates. So as expected, higher prices helped offset the volume drop and as it turned out, they completely offset it.

雖然總銷量可能有所下降，但 ExpertFinish 的銷量卻沒有。相反，它們同比增長了 26%，這也有助於價格的混合組成部分。以大約 50% 的可變利潤率減少 2700 萬美元的銷量使該部門損失了 1400 萬美元的 EBITDA。賽丁的平均售價比去年第一季度高出10%。 10 點漲幅中約有 6 點來自標價上漲，即今年 1 月漲幅和去年年中漲幅的綜合影響，其餘來自優惠組合和較低的回扣。因此，正如預期的那樣，更高的價格幫助抵消了銷量的下降，而且事實證明，它們完全抵消了它。

This was also a quarter of heavy investment in future capacity. Mill conversion costs were up $6 million year-over-year, but I need to dissect that statement. This year, we actually incurred $10 million converting Sagola to Siding, but at the same time last year, we incurred $10 million converting Houlton to Siding. So one $10 million conversion cost was basically replaced with another.

這也是對未來產能進行大量投資的四分之一。工廠轉換成本同比增加了 600 萬美元，但我需要仔細分析一下這一說法。今年，我們實際上花費了 1000 萬美元將 Sagola 改成 Siding，但去年同期，我們花費了 1000 萬美元將 Houlton 改成 Siding。因此，一個 1000 萬美元的轉換成本基本上被另一個替代了。

All that shows up on the waterfall, therefore, is $6 million of unabsorbed operating cost of Houlton, while we proceed with what is turning out to be a slow ramp-up given current market conditions. But this means that the business is actually carrying $16 million of embedded cost, that is $10 million of Sagola conversion plus $6 million of uncovered costs of Houlton, all in the interest of future growth. And this cost is about 5 percentage points of EBITDA margin in the first quarter.

因此，所有顯示在瀑布上的是 Houlton 600 萬美元的未吸收運營成本，而我們繼續進行的是考慮到當前市場條件而證明是緩慢的增長。但這意味著該業務實際上承擔了 1600 萬美元的嵌入式成本，即 1000 萬美元的 Sagola 轉換加上 600 萬美元的 Houlton 未覆蓋成本，所有這些都是為了未來的增長。而這一成本約為第一季度 EBITDA 利潤率的 5 個百分點。

A second margin headwind came from raw material inflation. Compared to the first quarter of last year, inflation cost Siding $14 million of EBITDA. Now inflation ramped up quickly during the second quarter of last year. So while prices remain elevated, we do expect year-over-year comparisons to begin to ease going forward.

第二個不利因素來自原材料價格上漲。與去年第一季度相比，通貨膨脹使 Siding 損失了 1400 萬美元的 EBITDA。現在通脹在去年第二季度迅速上升。因此，儘管價格仍然居高不下，但我們確實預計未來的同比比較將開始放緩。

So again, in a quarter of high inflation, much lower housing starts, lower volumes and the impact of converting and ramping up Sagola, the Siding segment delivered $67 million in EBITDA for a margin of 20%. And to demonstrate the long-term potential of the segment, even with (inaudible), adding back either the $16 million of mill ramp-up and conversion costs or the $17 million of inflationary impact revealed an EBITDA margin of above 25%.

因此，在四分之一的高通脹、低得多的房屋開工、低產量以及轉換和提升 Sagola 的影響下，Siding 部門實現了 6700 萬美元的 EBITDA，利潤率為 20%。為了證明該部門的長期潛力，即使（聽不清），加上 1600 萬美元的工廠升級和轉換成本或 1700 萬美元的通貨膨脹影響，顯示 EBITDA 利潤率超過 25%。

The OSB waterfall on Slide 10 is inevitably dominated by price changes. This year, the bar as red and given that prices have returned to earth and one of the largest number on the bar by far is the $470 million drop in revenue and EBITDA due to these lower prices, it's also where I'll spend the least time.

幻燈片 10 上的 OSB 瀑布不可避免地受到價格變化的支配。今年，條形圖是紅色的，考慮到價格已經回歸現實，到目前為止，條形圖上最大的數字之一是由於這些較低的價格導致收入和 EBITDA 下降 4.7 億美元，這也是我花最少的地方時間。

Rather than price, the story of the quarter is how well the team responded to this much softer environment by managing with efficiency and discipline and delivering positive EBITDA in this very challenging environment. The majority of LP's OSB is consumed in new residential construction and disproportionately by single-family home construction. With single-family starts down 29% in the quarter, LP's OSB volume was down proportionately.

本季度的故事不是價格，而是團隊如何通過高效和紀律管理以及在這個極具挑戰性的環境中實現積極的 EBITDA 來應對這種更加溫和的環境。 LP 的大部分 OSB 用於新住宅建設，並且不成比例地用於單戶住宅建設。由於本季度單戶住宅開工率下降 29%，LP 的 OSB 銷量也相應下降。

Production was lower year-over-year by nearly 300 million square feet, which is about 30% of nameplate capacity, including $100 million down due to the conversion of Sagola from OSB to Siding. The remaining volume reduction of roughly 200 million square feet resulted from LP's market curtailment, which to minimize the cost and trade impact on the OSB network, we've concentrated in our highest cost and most remote mills.

產量同比減少近 3 億平方英尺，約佔銘牌產能的 30%，其中包括 1 億美元的減少，原因是 Sagola 從 OSB 轉換為 Siding。剩餘的約 2 億平方英尺的體積減少是由於 LP 的市場縮減，為了最大限度地減少成本和貿易對 OSB 網絡的影響，我們集中在成本最高和最偏遠的工廠。

While commodity volume was essentially flat, Structural Solutions volume was down 154 million square feet. Now this may be a reflection of increased price sensitivity among builders looking for ways to keep homes affordable for their customers. However, our price realization was very strong, in large part because Structural Solutions prices held up significantly better than commodity prices.

雖然商品銷量基本持平，但結構解決方案銷量下降了 1.54 億平方英尺。現在，這可能反映出建築商對價格敏感度的提高，他們正在尋找方法讓客戶負擔得起房屋。然而，我們的價格實現非常強勁，這在很大程度上是因為 Structural Solutions 的價格比商品價格保持得更好。

So while commodity prices were down 76% year-over-year, Structural Solutions prices fell by only 58%. And so in this market, the OSB segment managed both capacity and costs with both discipline and focus to generate this positive $5 million of EBITDA, which brings me to cash flow and capital allocation.

因此，雖然大宗商品價格同比下降 76%，但結構解決方案價格僅下降了 58%。因此，在這個市場上，OSB 部門通過紀律和重點管理產能和成本，以產生 500 萬美元的正 EBITDA，這讓我想到了現金流和資本配置。

Returning now to Slide 11. LP began the quarter with $383 million in cash and generated $66 million of EBITDA. The first quarter of every year is typically one of working capital build and the $144 million of outflow due to working capital breaks down roughly as follows: $45 million of log inventory was gathered in preparation for spring breakup in Northern mills, together with $25 million of finished goods build across the network for a total $80 million of inventory build.

現在回到幻燈片 11。LP 在本季度開始時擁有 3.83 億美元的現金，並產生了 6600 萬美元的 EBITDA。每年的第一季度通常是營運資金建設的一個季度，由於營運資金流出 1.44 億美元，大致分解如下：收集了 4500 萬美元的原木庫存以準備北方工廠的春季解散，以及 2500 萬美元的整個網絡的成品構建總計 8000 萬美元的庫存構建。

We also paid about $60 million in year-end accruals, including $30 million of customer rebates. All of this is typical first quarter activity. After paying $33 million in taxes, we had an operating cash outflow of $119 million. The first quarter's capital spend of $114 million will most likely be our heaviest in 2023 due to the inclusion of the Sagola conversion and the Bath, New York, prefinishing facility. The resulting drop in cash of $257 million still left LP with $126 million of cash at quarter end.

我們還支付了大約 6000 萬美元的年終應計費用，其中包括 3000 萬美元的客戶回扣。所有這些都是典型的第一季度活動。在支付了 3300 萬美元的稅款後，我們的經營現金流出為 1.19 億美元。第一季度 1.14 億美元的資本支出很可能是我們 2023 年的最高支出，因為包括了 Sagola 轉換和紐約巴斯的預修設施。由此導致的現金減少 2.57 億美元，LP 在季度末仍擁有 1.26 億美元的現金。

The second quarter is shaping up to be very different for capital allocation, so perhaps a preview is in order. As is typically the case, in the second quarter, working capital should be a source of cash, largely due to inventory consumption. And CapEx should also be lower than the first quarter by about $20 million. And as Brad mentioned, LP recently announced the acquisition of the Wawa OSB facility from Forex for $80 million. This has been financed entirely using existing funds.

第二季度的資本配置將大不相同，因此可能需要進行預覽。通常情況下，在第二季度，營運資金應該是現金來源，主要是由於庫存消耗。資本支出也應該比第一季度低約 2000 萬美元。正如 Brad 提到的，LP 最近宣布以 8000 萬美元的價格從 Forex 收購 Wawa OSB 設施。這完全是使用現有資金資助的。

So we're very excited about this acquisition, which significantly enhances our Siding growth strategy, and we're very happy to have the Wawa employees join our team as we prepare it to be on our next Siding (inaudible). We also made the difficult decision to close Entekra. We're disappointed that the deteriorating housing environment in Northern California necessitated this action, and we regret the impact that the closure will have on the Entekra team.

因此，我們對這次收購感到非常興奮，它顯著增強了我們的 Siding 增長戰略，我們很高興讓 Wawa 員工加入我們的團隊，因為我們正在準備下一個 Siding（聽不清）。我們還做出了關閉 Entekra 的艱難決定。我們對北加州不斷惡化的住房環境需要採取這一行動感到失望，我們對關閉將對 Entekra 團隊產生的影響感到遺憾。

But ultimately, we determined that LP's capital is better invested in our core businesses. As a result, in the second quarter, we expect to report a noncash write-down of remaining Entekra assets of roughly $25 million as we wind down the business over the course of the quarter.

但最終，我們確定 LP 的資本更好地投資於我們的核心業務。因此，在第二季度，隨著我們在本季度結束業務，我們預計將報告剩餘 Entekra 資產的非現金減記約 2500 萬美元。

Which brings me to guidance on Slide 12. The housing market remains uncertain despite green shoots as the spring building season ramps up. Publicly traded homebuilders have referenced encouraging strength in their order patterns. However, with total starts down, this can only mean that smaller builders are seeing reduced demand.

這讓我想到了幻燈片 12 的指導。儘管隨著春季建築季節的到來出現了新芽，但房地產市場仍然不確定。公開交易的房屋建築商在他們的訂單模式中提到了令人鼓舞的力量。然而，隨著總開工率下降，這只能意味著較小的建築商看到需求減少。

Mortgage applications remain quite sensitive to interest rates and stubbornly high prices presents continued challenge to affordability. As a result, we still lack sufficient clarity to offer full year guidance. Our best read of our current order files suggests that Siding's second quarter revenue will be similar to that of the first quarter. And this would mean volumes being down year-over-year but substantially outperforming the anticipated drop in single-family housing starts. Year-over-year price increases will, again, partially offset the volume drop such that second quarter revenue for Siding is expected to be no worse than 5% lower year-over-year.

抵押貸款申請對利率仍然非常敏感，而且居高不下的價格對負擔能力提出了持續的挑戰。因此，我們仍然缺乏足夠的清晰度來提供全年指導。我們對當前訂單文件的最佳解讀表明，Siding 第二季度的收入將與第一季度相似。這將意味著交易量同比下降，但大大超過單戶住宅開工的預期下降。同比價格上漲將再次部分抵消銷量下降，因此預計 Siding 第二季度收入同比下降不超過 5%。

For OSB, prices have improved recently such that if we assume prices hold flat at current levels, the OSB business would expect to see revenues of about 20% sequentially higher than the first quarter. This assumes increased operating rates based on current demand. Under these assumptions, LP's total EBITDA for the second quarter would be at least $80 million.

對於 OSB，最近價格有所上漲，如果我們假設價格保持在當前水平，OSB 業務預計收入將比第一季度高出約 20%。這假設根據當前需求提高了開工率。根據這些假設，LP 第二季度的 EBITDA 總額將至少為 8000 萬美元。

So let me conclude with this. LP's strategy is to grow the specialty components of our business, thereby reducing our dependence on cyclical housing starts and volatile commodity prices. With OSB prices where they were over the last 2 years, almost any strategy would have resulted in tremendous cash flow. Perhaps a better test of our strategy is a market more like the one we have now. A 30% drop in single-family starts presents a truer test of whether SmartSide can continue to outperform the market by taking share without simply relying on the rising tide of housing. It's also an opportunity to demonstrate that LP's OSB segment can break even at recent low prices by the combined effects of disciplined capacity management, efficient operations and maintaining a consistently positive incremental contribution from Structural Solutions.

因此，讓我以此作為結束語。 LP 的戰略是發展我們業務的專業部分，從而減少我們對周期性房屋開工和商品價格波動的依賴。考慮到過去 2 年的 OSB 價格，幾乎任何策略都會產生巨大的現金流。也許對我們戰略的更好測試是一個更像我們現在擁有的市場。單戶住宅開工率下降 30% 是對 SmartSide 是否可以通過搶占市場份額而不僅僅是依靠住房上漲趨勢繼續跑贏市場的更真實考驗。這也是一個機會，可以證明 LP 的 OSB 部門可以通過嚴格的容量管理、高效運營和保持 Structural Solutions 持續積極的增量貢獻的綜合影響，以最近的低價實現收支平衡。

And lastly, it's a test of LP's capital allocation and business development strategies as well as our resolve to use our strong balance sheet to invest in these strategies when opportunities arise, not simply when we're flushed with cash. The first quarter of 2023 was the first such test and, surely, it won't be the last. But LP responded by demonstrating our commitment to our strategy and the value it can deliver.

最後，這是對 LP 的資本配置和業務發展戰略的考驗，以及我們在機會出現時利用我們強大的資產負債表投資這些戰略的決心，而不僅僅是在我們現金充裕時。 2023 年第一季度是第一次這樣的考驗，當然也不會是最後一次。但 LP 的回應是展示了我們對我們的戰略及其可以提供的價值的承諾。

And with that, we'll be happy to take your questions.

因此，我們很樂意回答您的問題。

(Operator Instructions) Our first question comes from Mark Weintraub with Seaport Research Partners.

（操作員說明）我們的第一個問題來自 Seaport Research Partners 的 Mark Weintraub。

A couple of questions on Siding. One is, you talked about some positive indications order file-wise, but it doesn't look like you're assuming much in the way of volume improvement from the first quarter to the second quarter. First of all, is that -- am I right making that assumption? And maybe if you could provide a little bit more color on the thought process there, if that is indeed the case.

關於Siding的幾個問題。一個是，你談到了一些積極的訂單文件跡象，但看起來你並沒有在第一季度到第二季度的銷量改善方面做出太多假設。首先，我的假設是否正確？也許你可以為那裡的思維過程提供更多色彩，如果確實如此的話。

Yes, Mark, you're right. And while we are seeing some strengthening in the order file, we are still working through elevated inventory levels within the channel. And so the revenue that our channel partners are seeing is not yet fully impacting our order file. And we believe it's going to take most of Q2 to work through that elevated inventory level within the channel.

是的，馬克，你是對的。雖然我們看到訂單文件有所加強，但我們仍在努力解決渠道內庫存水平升高的問題。因此，我們的渠道合作夥伴看到的收入尚未完全影響我們的訂單文件。而且我們認為，第二季度的大部分時間都將用於解決渠道內升高的庫存水平。

Okay. And then you mentioned that there was about $10 million in start-up costs in the segment in the first quarter. Is something along those lines? Or what's anticipated for the second quarter? Really what I'm sort of trying to figure out is why the $80 million guide, and I realize it's $80 million plus for the second quarter, given that we're going to be higher presumably in OSB, you talked about the 20% improvement in revenue. And I guess I would have thought that we get some -- well, again, maybe specifically what -- is there also start-up costs in Siding in the second quarter?

好的。然後你提到第一季度該部門的啟動成本約為 1000 萬美元。有沒有類似的東西？或者第二季度的預期是什麼？我真正想弄清楚的是為什麼 8000 萬美元的指導，我意識到第二季度是 8000 萬美元以上，因為我們可能在 OSB 方面會更高，你談到了 20% 的改進在收入中。而且我想我會認為我們會得到一些 - 好吧，再一次，也許具體是什麼 - 第二季度在 Siding 中是否也有啟動成本？

It's a great question, Mark. There are some start-up costs in Siding in the second quarter, but they are -- they will be lower than the first quarter. And yes, to sort of offset, to answer the question, there is inevitably some conservatism built into the $80 million.

這是一個很好的問題，馬克。第二季度 Siding 有一些啟動成本，但它們會低於第一季度。是的，為了抵消，為了回答這個問題，8000 萬美元中不可避免地存在一些保守主義。

Our next question comes from Ketan Mamtora with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Ketan Mamtora。

Brad or Alan, can you give some additional color on how the shed business did in Q1?

布拉德或艾倫，你能給第一季度棚屋業務的表現提供一些額外的顏色嗎？

Sure, Ketan. I would say the shed business is probably one of our slower-performing segments right now. There was, I would say, of all the segments that we've played in during COVID, I do think there was some pull forward demand in shed. We have seen some more recent recovery there. But as a mix of our portfolio, it's certainly underperforming at the moment, the rest of that portfolio.

當然，科坦。我想說棚屋業務可能是我們目前表現較慢的部門之一。我想說的是，在我們在 COVID 期間參與的所有細分市場中，我確實認為棚屋有一些前瞻性需求。我們在那裡看到了最近的一些復甦。但作為我們投資組合的組合，它目前肯定表現不佳，其他投資組合。

Understood. And then switching to the Wawa conversion. Alan, is there any way to think about, at a high level, how would you have us think about the additional conversion cost that might be there for this -- for the conversion to Siding?

明白了。然後切換到Wawa轉換。艾倫，有什麼方法可以從高層次上考慮，您會讓我們如何考慮為此可能存在的額外轉換成本——轉換為 Siding？

Yes. We're still working through -- obviously, we have only just acquired it yesterday. Obviously, we did some due diligence. So we're still working through what those numbers would be. But if you think about the fact that the return, the IRR of this project is -- will be similar to the Houlton 2 conversion, and this will be slightly bigger, then there's obviously going to be some sizable conversion CapEx. The moment we have those numbers nailed down, we'll be happy to share them just as we did with the Houlton 2 numbers, but it will be sizable.

是的。我們仍在努力——顯然，我們昨天才剛剛獲得它。顯然，我們做了一些盡職調查。所以我們仍在研究這些數字是多少。但如果你考慮到回報，這個項目的 IRR 是——將類似於 Houlton 2 的轉換，而且會稍微大一點，那麼顯然會有一些相當大的轉換資本支出。一旦我們確定了這些數字，我們將很樂意分享它們，就像我們對 Houlton 2 的數字所做的那樣，但它會相當大。

Got it. Okay. And how are you thinking about the timing of the Wawa mill at this point?

知道了。好的。在這一點上，您如何看待 Wawa 工廠的時機？

Totally thinking that it would be Q4. At current model, just to give you a benchmark, Q4 2026. I got a strange -- Aaron is pulling a face at me...

完全認為這將是第四季度。在當前模型下，只是給你一個基準，2026 年第 4 季度。我有一個奇怪的 -- Aaron 對著我做鬼臉......

I might as well share the room.

我還不如同住一個房間。

It will be demand dependent...

這將取決於需求...

It will, of course, but that's our working model right now.

當然會，但這就是我們現在的工作模式。

Sorry, which year did you say, Alan?

抱歉，艾倫，你說的是哪一年？

2026.

2026.

2026. Okay. Got it.

2026. 好的。知道了。

Our next question comes from Paul Quinn with RBC.

我們的下一個問題來自 RBC 的 Paul Quinn。

Just wondering what the state of Wawa is. I mean I know the company was trying to convert it back from the power plant. Is it functioning OSB mill at this point or is it closed? Or how much work is entailed to get it back to an OSB mill?

只是想知道Wawa是什麼狀態。我的意思是我知道公司正試圖將其從發電廠轉換回來。 OSB 工廠此時正在運行還是已關閉？或者需要多少工作才能將其送回 OSB 工廠？

Yes. I'll take that. This is Aaron. It's going to be a substantial amount of work to get it to the point that it's a functioning OSB mill. The advantage for us is that the current state of the construction project is kind of ideal for us to step in and redirect that conversion so that we can convert it efficiently to Siding. So it's not currently producing OSB. It would be a while before it could if we plan to do so. But we've got a fair amount of work to do to kind of complete the project and complete it as a Siding mill.

是的。我會接受的。這是亞倫。要使它成為一個正常運行的 OSB 工廠，將需要大量的工作。對我們來說，優勢在於建設項目的當前狀態非常適合我們介入並重定向該轉換，以便我們可以將其有效地轉換為 Siding。所以它目前不生產 OSB。如果我們打算這樣做，還需要一段時間。但是我們還有很多工作要做才能完成項目並將其作為壁板廠完成。

Okay. That's helpful. And then just over on ExpertFinish, great to hear that it's up 26%. Just wondering what percentage of overall Siding volume that represents now? And what's the operating rate for the ExpertFinish lines that you've got going right now?

好的。這很有幫助。然後就在 ExpertFinish 上，很高興聽到它上漲了 26%。只是想知道現在代表整體壁板體積的百分比是多少？您現在使用的 ExpertFinish 生產線的開工率是多少？

The operating rates for the lines are pretty low. While we continue to -- a, from an OEE standpoint, we're learning how to produce that product. But also the capacity there is relatively inexpensive. So we're ramping into that. And certainly, when we have the Bath mill on in Q3, we're going to have plenty of capacity there.

線路的開工率非常低。雖然我們繼續 - a，從 OEE 的角度來看，我們正在學習如何生產該產品。而且那裡的容量也相對便宜。所以我們正在努力。當然，當我們在第三季度啟動 Bath mill 時，我們將在那裡擁有充足的產能。

There has been times in our order file, especially last year, where we were constrained with ExpertFinish capacity. And while those can be tight now currently, we're okay as far as that balance between capacity and sales at the moment. But we certainly need the Bath, New York, line to come on and we need to be running those lines better. And then as far as your question on mix of ExpertFinish, it's about 9%.

在我們的訂單文件中，尤其是去年，我們曾多次受到 ExpertFinish 產能的限制。雖然目前這些可能很緊張，但就目前產能和銷售之間的平衡而言，我們還可以。但我們當然需要紐約巴斯線路開通，我們需要更好地運行這些線路。至於你關於 ExpertFinish 混合的問題，大約是 9%。

Okay. That's great. And just with respect to your BuilderSeries line, one of your competitors back in the market with their (inaudible), just wondering if you noticed any drop in order file on that, given also the weak single-family build.

好的。那太棒了。就您的 BuilderSeries 系列而言，您的一位競爭對手帶著他們的（聽不清）重返市場，只是想知道您是否注意到訂單文件有任何下降，同時考慮到單戶建築的弱點。

No, I would say not. We have not seen a drop in the order file, but I would directly attribute to that. I will say the competitive environment for new deals has certainly stepped up, the competitive nature there, given that reintroduction, but not necessarily, as far as I know, translated into a loss of any volume we had secured previously.

不，我會說不是。我們沒有看到訂單文件下降，但我會直接歸因於此。我會說新交易的競爭環境肯定已經加強，那裡的競爭性質，鑑於重新引入，但據我所知，不一定轉化為我們之前獲得的任何數量的損失。

Okay. Great. And the last one for me. Just on South America. Can we expect any change through the balance of '23 from that segment?

好的。偉大的。最後一個給我。就在南美洲。我們可以期待該細分市場在 23 年的餘額中發生任何變化嗎？

Yes. I think it's, I think, pretty consistent with how it performed in Q1. I mean there'll be some ups and downs as we go through the year, and we're hoping to see some strengthening in the other underlying economy, especially in Chile throughout the year, but we're not ready to call that right now.

是的。我認為這與它在第一季度的表現非常一致。我的意思是，今年我們會經歷一些起起落落，我們希望看到其他基礎經濟在全年有所加強，尤其是在智利，但我們現在還不准備稱之為.

Our next question comes from Susan Maklari with Goldman Sachs.

我們的下一個問題來自高盛的 Susan Maklari。

My first question is on Siding. You obviously are realizing some nice pricing there. You did mention that the channel still has some inventory that they'll work through in the second quarter. How are you thinking about the dynamics of price versus volume if those inventories do stay elevated longer? Are you willing to take some of that down? Or what will be the plan there?

我的第一個問題是關於 Siding 的。您顯然在那裡意識到了一些不錯的價格。您確實提到該渠道仍有一些庫存將在第二季度完成。如果這些庫存確實保持較長時間，您如何看待價格與數量的動態變化？你願意把它拿下來嗎？或者那裡會有什麼計劃？

Yes. We are not contemplating a price decline from a price list standpoint, Susan. We've never done that in the at least 20 years or so I've been associated with the Siding business. I will talk that -- the way that plays out dynamically in the market is as we negotiate primarily builder or contractor deals. Obviously, volume can be secured sometimes with back-end rebates, especially with the larger builders and the large regional builders.

是的。蘇珊，從價目表的角度來看，我們並未考慮降價。在至少 20 年左右的時間裡，我們從未這樣做過，所以我一直與 Siding 業務相關聯。我會說——在市場上動態發揮作用的方式是我們主要談判建築商或承包商交易。顯然，有時可以通過後端回扣來確保銷量，尤其是對於較大的建築商和大型區域建築商。

And so as we -- as the environment gets more competitive, the kind of the negotiating power moves a little bit more into the end-use customer realm, and so it can get manifested in our rebate strategy as far as securing new business. But there's no plan at all to lower list pricing across our Siding portfolio.

因此，隨著我們 - 隨著環境變得更具競爭力，談判能力的類型會更多地進入最終使用客戶領域，因此它可以在我們的回扣策略中得到體現，以確保新業務。但是根本沒有計劃降低我們 Siding 產品組合的定價。

Okay. That's helpful. And then thinking about the CapEx guide that you've put out, it suggests that perhaps in the second quarter, you could see your cash from ops higher than your CapEx spend. Can you talk a little bit about how you're thinking about capital allocation? Any appetite to bring back the buybacks at this point? And anything else we should be thinking about there?

好的。這很有幫助。然後考慮您發布的資本支出指南，它表明，也許在第二季度，您可以看到來自運營的現金高於資本支出支出。你能談談你是如何考慮資本配置的嗎？此時是否有興趣恢復回購？還有什麼我們應該考慮的嗎？

I don't think -- given that CapEx may be lower than our operating cash flow in Q2, but we will be paying $80 million for Wawa. So there will be pretty heavy investment outflows in the second quarter. And so I don't -- just if I look at the cash patterns that I think we'll see for the remainder of 2023, I'm more inclined should there be a modest upside in cash flow to use that for the operations. I don't -- based on trends I'm seeing today, I don't see share buybacks for the remainder of this year. But I just hope I'm plain wrong.

我不認為——鑑於資本支出可能低於我們第二季度的運營現金流，但我們將為 Wawa 支付 8000 萬美元。因此，第二季度將出現相當大的投資流出。所以我不——只要我看看我認為我們將在 2023 年剩餘時間內看到的現金模式，我更傾向於將現金流量適度上升用於運營。我沒有——根據我今天看到的趨勢，我看不到今年剩餘時間的股票回購。但我只希望我完全錯了。

Our next question comes from George Staphos with Bank of America.

我們的下一個問題來自美國銀行的 George Staphos。

Alan, Brad, can you talk a bit about lead times on press equipment and what you'd be needing to convert Wawa? I know on kind of traditional press equipment, at one point in time in the last year, I think lead times from order hearing, we're in the 18-month time frame. I would imagine that has lessened in the last year or so. But if you put the order in today, when would you be able to start bolting the equipment down on the factory floor from what you could share with us?

艾倫、布拉德，你能談談印刷設備的交貨時間以及轉換 Wawa 需要什麼嗎？我知道在某種傳統的印刷設備上，在去年的某個時間點，我認為從訂單聽證會開始的交貨時間，我們處於 18 個月的時間範圍內。我想這種情況在過去一年左右有所減少。但是，如果您今天下訂單，您什麼時候可以從您可以與我們分享的內容開始將設備固定在工廠車間？

Well, just let me talk generally. I mean there is a press in Wawa that we're planning to use. (inaudible) the press, which is meaningful to the timing of this project, George, to your point. And then what we're -- one of the things that we're looking at now is we have been in the process of securing orders and material steel fabrication time for the Houlton line 2 conversion.

好吧，讓我談談一般情況。我的意思是我們計劃使用 Wawa 中的印刷機。 （聽不清）媒體，這對這個項目的時間安排很有意義，喬治，就你的觀點而言。然後我們是什麼——我們現在正在關注的一件事是，我們一直在為霍爾頓 2 號線轉換確保訂單和材料鋼製造時間。

The work that we'll do this quarter is to understand how much of that can be transferred over to the Wawa mill conversion directly as far as the engineering goes. And so I would say that -- and I'm not -- at this moment, I'm not really concerned about timing any more than I would have been about Houlton line 2 because of what we have to do in Wawa.

本季度我們將做的工作是了解在工程方面，有多少可以直接轉移到 Wawa 工廠轉換。所以我會說——我不是——現在，我並不真正關心時間安排，就像我對 Houlton 2 號線一樣，因為我們必須在 Wawa 做。

And I'll just -- a little bit of color there. The Houlton line 2 was a pretty complex conversion for us because we kind of used all the [easy space] and the existing equipment other than the (inaudible) on Houlton line 1. So there was a complexity element there that was not there on Houlton line 1 or even for -- in Sagola for that matter. So it kind of makes these 2 projects somewhat similar as far as potential timing if we wanted to ramp them up as quickly as possible.

我只是 - 那裡有一點顏色。 Houlton 2 號線對我們來說是一個相當複雜的轉換，因為我們使用了所有 [easy space] 和現有設備，而不是 Houlton 1 號線的（聽不清）。所以那裡有一個 Houlton 上沒有的複雜元素第 1 行甚至在 Sagola 就此而言。因此，如果我們想盡快啟動這兩個項目，那麼就潛在時間而言，這有點相似。

And Aaron had mentioned when the question come up and Alan was answering about when you expect it to be starting up and it's going to be demand specific, which in turn means you're going to be looking at certain metrics in terms of triggering when you'll go forward. If you were in our seat, what level of housing or repair model would be kind of the go, no-go or the go signal in terms of starting up the -- accelerating the conversion and going forward?

當問題出現時 Aaron 提到過，Alan 正在回答你希望它何時啟動，這將是特定於需求的，這反過來意味著你將在觸發時查看某些指標會前進。如果您坐在我們的位子上，就啟動 - 加速轉換和前進而言，什麼樣的住房或維修模式是可行、不可行或可行的信號？

Well, I would say just from an acceleration standpoint, I would say the earliest we could do that, if it was kind of all out on it, was having probably Board approval later this year from a design standpoint, and then at least a year from that point to get it converted and then operating from 0. It's just not making anything now unlike all our other mill conversions.

好吧，我想說從加速的角度來看，我想說我們最早可以做到這一點，如果它有點全力以赴的話，從設計的角度來看可能會在今年晚些時候獲得董事會批准，然後至少一年從那一點開始進行轉換，然後從 0 開始運行。與我們所有其他工廠轉換不同，它現在什麼也沒做。

So we're looking -- to Alan's point, '25 -- 2025, probably at the earliest, maybe middle of 2025, perhaps Q2 of 2025, but more realistically, 2026. And so from a market standpoint, if housing got back to where it was 12 months ago, I could see us in -- the quicker that happens, the more pressure it's going to be on us to convert that mill.

所以我們正在尋找 - 艾倫的觀點，'25 - 2025，可能最早，可能是 2025 年中期，可能是 2025 年第二季度，但更現實的是，2026 年。所以從市場的角度來看，如果住房回到12 個月前的情況，我可以看到我們 - 發生得越快，我們改造該工廠的壓力就越大。

But I want to say the Sagola mill is a significant conversion for us that we're just getting started on right now as far as selling it out. And as Alan mentioned in his remarks, we're still not going to utilize Houlton line 1 yet. So we do have significant capacity coming online right now. So I'm not too concerned about us -- I mean other than a spike in new home construction after this kind of uncertain environment we're in today, I'm not too concerned about our ability to miss a window there in Wawa.

但我想說，Sagola 工廠對我們來說是一個重大的轉變，就銷售而言，我們現在才剛剛開始。正如艾倫在他的發言中提到的那樣，我們仍然不會使用霍爾頓 1 號線。因此，我們現在確實有大量容量上線。所以我不太擔心我們——我的意思是，除了在我們今天所處的這種不確定環境之後新房建設激增之外，我不太擔心我們錯過 Wawa 的機會。

One last question for me on Siding. So you talked a little bit about, I guess, to some degree, some pickup in competitive activity given one of your peers' reintroduction of one of their product lines, that's a little bit more, if you will, affordable. Specifically, within your product categories, are you seeing more demand for BuilderSeries and more momentum there? How would your volumes have shaken out or how did they shake out in the first quarter between BuilderSeries and the other, perhaps, higher end products in Siding?

關於 Siding 的最後一個問題。所以你談到了一點，我想，在某種程度上，鑑於你的一位同行重新引入他們的產品線之一，競爭活動有所增加，如果你願意的話，價格會更高一些。具體來說，在您的產品類別中，您是否看到了對 BuilderSeries 的更多需求和更多動力？在 BuilderSeries 和 Siding 中的其他可能更高端的產品之間，您的銷量將如何波動，或者它們在第一季度是如何波動的？

Yes. George, that's a kind of complex question because we play in so many different segments. But (inaudible) the lap Siding category, BuilderSeries is outgrowing the non-BuilderSeries product. And I really attribute that -- I mean from a volume standpoint, obviously, it's of a smaller base, but also the strength right now in housing is with the bigger national builders and the large regional builders, which tend to be -- or which is not tend to be, which is a target of our BuilderSeries formal introduction.

是的。喬治，這是一個複雜的問題，因為我們在很多不同的領域打球。但是（聽不清）搭接壁板類別，BuilderSeries 的增長速度超過了非 BuilderSeries 產品。我真的認為——我的意思是，從數量的角度來看，顯然，它的基數較小，但目前在住房領域的優勢在於更大的國家建築商和大型區域建築商，它們往往是——或者哪個不是傾向於，這是我們BuilderSeries正式介紹的一個對象。

So as we see that continued strength in the -- with the big builder, that's going to tend to put lap volume more into that category than into the -- into our traditional lap Siding -- 16-foot lap Siding product. Now a whole different story on R&R and ExpertFinish, where it's mostly 16 foot. But certainly, within that, build single-family new construction category, flat Siding (inaudible) BuilderSeries.

因此，正如我們所看到的那樣 - 與大型建築商的持續實力，這將傾向於將單圈體積更多地放入該類別而不是 - 進入我們傳統的單圈壁板 - 16 英尺單圈壁板產品。現在關於 R&R 和 ExpertFinish 的情況完全不同，其中大部分是 16 英尺。但可以肯定的是，在此範圍內，建造單戶新建築類別，扁平壁板（聽不清）BuilderSeries。

Our next question comes from Michael Roxland with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Michael Roxland。

Congrats on a very good quarter. Alan, just last quarter, you provided some color on the EBITDA bridge by segment. I'm just wondering if you could do the same this quarter as it relates to the $80 million -- at least $80 million in EBITDA that you are forecasting. Just help us frame how Siding and OSB stack up in that guidance, please?

祝賀一個非常好的季度。艾倫，就在上個季度，您按細分市場提供了 EBITDA 橋樑的一些顏色。我只是想知道你是否可以在本季度做同樣的事情，因為它與你預測的 8000 萬美元 - 至少 8000 萬美元的 EBITDA 相關。請幫助我們確定 Siding 和 OSB 在該指南中的作用，好嗎？

Yes. One -- just to sort of revisit Q1 from this, the principal reason that I broke the EBITDA down by segment was because the number was fundamentally so low as we guided to $35 million. I didn't want anyone to think that, that was Siding's unique performance. So I wanted to call out the expectation, at least at that point that we might have negative EBITDA in Siding -- sorry, that we might have negative EBITDA in OSB, which turned out not to be the case.

是的。一——只是為了從這裡重新審視第一季度，我按部門細分 EBITDA 的主要原因是因為這個數字從根本上說太低了，我們指導為 3500 萬美元。我不想讓任何人認為那是斯丁的獨特表現。所以我想提出期望，至少在那個時候我們可能在 Siding 中有負 EBITDA - 抱歉，我們在 OSB 中可能有負 EBITDA，事實並非如此。

So with the $80 million, I'll at least give you that the Siding performance is going to be similar-ish, if you think about my answer to Mark Weintraub's question that opened the Q&A session. It's going to be similar-ish to Q1. And as is normal, if you look at our Q1 results, you'll see that corporate and South American EBITDA kind of (inaudible) offset rather. So I think without being drawn further. I think I've given you almost everything. You need to (inaudible) $80 million without actually saying it explicitly. So I'm trapped again, but...

因此，有了 8000 萬美元，我至少會告訴你，如果你想一想我對 Mark Weintraub 在問答環節開始時的問題的回答，Siding 的表現將是相似的。它將與第一季度類似。和往常一樣，如果你看一下我們第一季度的結果，你會發現公司和南美的 EBITDA 有點（聽不清）抵消。所以我認為沒有被進一步吸引。我想我幾乎已經給了你一切。你需要（聽不清）8000 萬美元，但實際上並沒有明確說明。所以我又被困住了，但是......

We don't mind being -- you being very explicit. So...

我們不介意——你非常直白。所以...

(inaudible).

（聽不清）。

This is -- the second question, just wanted to get a sense of how you guys are thinking about the Sagola ramp, particularly given that you slowed Houlton last quarter. You mentioned you still want to work down inventories through the balance of the year. So how is that -- how are you thinking about ramping given the -- given those conditions?

這是——第二個問題，只是想了解一下你們對 Sagola 斜坡的看法，特別是考慮到你們上個季度放慢了 Houlton 的速度。您提到您仍然希望在今年餘下時間減少庫存。那麼，在這些條件下，你是如何考慮增加產量的呢？

Just generally speaking, when we're in the process of ramping a mill like Sagola or like Houlton last year, we do like to push the volume there to give the machinery and the crews the opportunity to learn how to make Siding. So we'll be -- as we go through this year, the tendency is -- for us is going to be -- it's going to want to match their capability by putting orders in there. And then -- which is what we're doing now. As Sagola is coming up, we're backing off -- just back off a little bit on Houlton as a priority, given the need to balance production.

一般來說，當我們去年在像 Sagola 或 Houlton 這樣的工廠進行斜坡建設時，我們確實希望提高那裡的產量，讓機器和工作人員有機會學習如何製作 Siding。所以我們將 - 隨著我們今年的經歷，趨勢是 - 對於我們來說 - 它會希望通過在那裡下訂單來匹配他們的能力。然後——這就是我們現在正在做的。隨著 Sagola 的到來，我們正在退縮——考慮到平衡生產的需要，我們將把 Houlton 作為優先事項稍微退後一步。

But -- so that is kind of a color on how we think about Sagola. I will say, other than that, we would probably -- we would kind of spread -- if we have to take production-related downtime, we spread that across the system, generally speaking, and some of that is due to the fact that these mills have special type of SKU capability. So some plants can or cannot make certain SKUs. So that will tend to spread the downtime around a little bit. So I mean -- but directly to your question, we will prioritize volume into Sagola this year to ramp that mill up.

但是 - 所以這是我們如何看待 Sagola 的一種顏色。我要說的是，除此之外，我們可能會——我們會有點傳播——如果我們必須採取與生產相關的停機時間，我們將其傳播到整個系統，一般來說，其中一些是由於這樣的事實這些工廠具有特殊類型的 SKU 能力。所以有些工廠可以或不能生產某些 SKU。因此，這往往會稍微延長停機時間。所以我的意思是——但直接針對你的問題，我們將在今年優先考慮 Sagola 的產量，以提高該工廠的產量。

Our next question comes from Sean Steuart with TD Securities.

我們的下一個問題來自道明證券的 Sean Steuart。

Just one question, and appreciating you just rolled out your 2023 CapEx budget, but that number is a little bit more conservative than we were forecasting, which I guess makes sense given the resequencing of Siding growth initiatives. Would it be fair to say, as you look into 2024, that you would expect CapEx to ramp up a little bit as you get into, I guess, Wawa spend to convert that asset and start to think about the next stage after that. Is that a fair assumption as we look out to 2024?

只是一個問題，感謝您剛剛推出了 2023 年的資本支出預算，但這個數字比我們預測的要保守一些，考慮到 Siding 增長計劃的重新排序，我認為這是有道理的。可以公平地說，當你展望 2024 年時，你會期望資本支出在你進入時稍微增加一點，我猜，Wawa 花費來轉換該資產並開始考慮此後的下一階段。展望 2024 年，這是一個合理的假設嗎？

Let me take a hint from Aaron. It's obviously market dependent. But [I'll dunk and learn new tricks]. But it is -- one of the things we tried to convey with a broad range of capital guidance that I gave last quarter, which was broader and larger than the numbers that are in our press release right now, yes, there's a huge amount of capital flexibility. And I hope, quite frankly, that yes, we see increased capital spending in 2024 compared to our current projection for 2023 entirely plausible.

讓我從亞倫那裡得到一個暗示。這顯然取決於市場。但是[我會扣籃並學習新技巧]。但它是 - 我們試圖通過我上個季度給出的廣泛資本指導傳達的內容之一，它比我們現在新聞稿中的數字更廣泛和更大，是的，有大量資本靈活性。我希望，坦率地說，是的，與我們目前對 2023 年的預測相比，我們認為 2024 年的資本支出增加是完全合理的。

Our next question comes from Mark Weintraub with Seaport Research Partners.

我們的下一個問題來自 Seaport Research Partners 的 Mark Weintraub。

Not wanting to get too much into the weeds, but sort of interesting. I would have thought that Wawa might have serviced similar markets to Houlton. Maybe just some color, kind of geographic product mix of how you imagine the Wawa project proceeding relative to what you were thinking about Houlton second line? And what implications might we want to be thinking through as to how the second line at Houlton would progress if indeed that were the case?

不想過多地涉足雜草，但有點有趣。我原以為 Wawa 可能服務於與 Houlton 類似的市場。也許只是一些顏色，一種地理產品組合，你如何想像 Wawa 項目相對於你對 Houlton 二線的想法？如果情況確實如此，我們可能想要思考關於霍爾頓的第二條線將如何發展的影響是什麼？

So the 2 advantages Wawa has over or -- I mean the plan that we had for Houlton 2. One is the size of the press and the capability of the project will be a lot greater as I think what was in the prepared comments to be one of our larger -- will be our largest one line Siding mill. So that volume really helps make the decision about that as the next mill over Houlton.

所以 Wawa 有兩個優勢——我的意思是我們為 Houlton 2 制定的計劃。一個是媒體的規模，而且項目的能力將大得多，因為我認為準備好的評論中的內容是我們較大的工廠之一——將是我們最大的單線壁板廠。所以這個數量真的有助於做出關於 Houlton 的下一個工廠的決定。

But then also the central location and the wood basket for Wawa is, it also provides a second advantage. And so when we -- so -- and that, I want to say that -- but more so than anything, it was just the assumed financial return on the 2 projects swayed us to putting Wawa in front of Houlton. We certainly believe Houlton will be the next conversion after Wawa is up and running.

但是，中心位置和 Wawa 的木籃也提供了第二個優勢。所以當我們——所以——我想說的是——但最重要的是，這兩個項目的假定財務回報讓我們把 Wawa 放在了 Houlton 的前面。我們當然相信 Houlton 將成為 Wawa 啟動並運行後的下一個轉換。

The advantage for Houlton is that access to the Eastern Seaboard, where we're underpenetrated. But obviously, we've got a lot of capacity on Houlton 1 for the near-term satisfaction of that demand. So -- but Mark, to answer your question, it's the production size, the capability or the capacity of the facility in Wawa and the quality of the wood basket there and the central location (inaudible) from an overall freight standpoint.

霍爾頓的優勢在於可以進入我們滲透不足的東海岸。但很明顯，我們在 Houlton 1 上有很多容量可以滿足近期的需求。所以 - 但馬克，回答你的問題，從整體貨運的角度來看，這是 Wawa 工廠的生產規模、能力或容量以及那里木籃的質量和中心位置（聽不清）。

So basically, it can service a broader geography than Houlton is one point. And then also, I guess -- so in terms of the like panel or lap focus, is there a bias for the Wawa facility like there was for Houlton?

所以基本上，它可以服務於比霍爾頓更廣泛的地理區域。然後，我猜——所以就類似面板或單圈焦點而言，Wawa 設施是否像 Houlton 那樣存在偏見？

No, Wawa will be very flexible across both -- potentially for both panel and lap. And so we're not -- we haven't made the decision on which of those products to emphasize as far as the finishing capability of the facility, but it provides flexibility there.

不，Wawa 在這兩個方面都非常靈活——可能在面板和膝上。因此，就設施的精加工能力而言，我們還沒有決定要強調哪些產品，但它在那裡提供了靈活性。

And this concludes the Q&A session. I'd now like to turn the call back over to Aaron Howald for any closing remarks.

問答環節到此結束。我現在想把電話轉回給 Aaron Howald，聽取任何結束語。

Okay. Thanks, Josh. With no further questions, we'll bring the first quarter earnings call for healthy building solutions to close. We look forward to catching up with you all soon. Thank you very much.

好的。謝謝，喬希。沒有進一步的問題，我們將結束第一季度關於健康建築解決方案的收益電話會議。我們期待盡快與大家見面。非常感謝。

Thank you.

謝謝。

Thank you.

謝謝。

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

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。