Middleby Corp (MIDD) 2023 Q3 法說會逐字稿

Thank you for joining us for the Middleby Third Quarter Conference Call. With us today from management are CEO, Tim FitzGerald; CFO, Bryan Mittelman, Chief Commercial Officer, Steven Spittle and Chief Technology and Operations Officer, James Pool; as well as Vice President of Investor Relations, John Joiner. (Operator Instructions). Please note, this call is being recorded. Now I'd like to turn the call over to Mr. FitzGerald. Please go ahead.

感謝您參加我們的米德爾比第三季電話會議。今天與我們一起出席的還有管理層的執行長 Tim FitzGerald；財務長 Bryan Mittelman、首席商務長 Steven Spittle 和首席技術和營運長 James Pool；以及投資者關係副總裁約翰喬伊納 (John Joiner)。 （操作員說明）。請注意，此通話正在錄音。現在我想把電話轉給菲茨傑拉德先生。請繼續。

Thank you, and good morning. Thanks for joining us today on our third quarter earnings call. As we begin, please note that our slides to accompany the call are the Investor page of our website. We're very excited to have joining us on today's call, John Joiner, our new Head of Investor Relations for Middleby. As many of you may know, John is joining us from BMO, where he did a tremendous job covering Middleby for many years. So he has a deep understanding of our industry with a passion for Middleby.

謝謝你，早安。感謝您今天參加我們的第三季財報電話會議。在我們開始時，請注意，電話會議隨附的幻燈片是我們網站的投資者頁面。我們非常高興米德爾比新任投資者關係主管約翰喬納 (John Joiner) 加入我們今天的電話會議。你們中的許多人可能都知道，約翰是從 BMO 加入我們的，他在蒙特利爾銀行多年來為米德爾比的報告做出了巨大的貢獻。所以他對我們的行業有著深刻的了解，並對米德爾比充滿熱情。

Given the recent expansion and significant expansion and the scope and scale of our business over recent years, it was the right time to establish a dedicated leader for Investor Relations, and we are excited to have John, as the first to set into this role for Middleby. I know John's presence will significantly benefit all of our current and future shareholders, and we are fortunate to have John now in the Middleby team.

鑑於近年來我們的業務擴張和顯著擴張以及業務範圍和規模，現在是為投資者關係設立專門領導者的最佳時機，我們很高興約翰成為第一個擔任該職位的人米德爾比。我知道約翰的存在將使我們所有當前和未來的股東受益匪淺，我們很幸運約翰現在加入了米德爾比團隊。

Now on to the quarter, we are pleased to have posted solid results reported -- reporting record earnings and cash flows in the quarter and for the year, driven by strong execution at both our commercial and our food processing businesses. We continue to make significant progress at our residential business, positioning for growth and a return to higher levels of profitability when the market recovers while at the same time managing the near-term impacts of the challenging market conditions. We again posted overall improved profitability and are realizing the benefit of our profit actions as we progress toward our longer-term margin targets. We are benefiting from our focus on new product innovation to drive improved profitability in our sales mix. We're realizing efficiency gains reflecting the impact from our manufacturing investments, and we are focused on the long-term supply chain opportunities with ongoing product design and sourcing initiatives, providing for greater improvements over the next year.

現在進入本季度，我們很高興公佈了穩健的業績報告——在我們的商業和食品加工業務的強勁執行力的推動下，本季度和全年的盈利和現金流創歷史新高。我們的住宅業務繼續取得重大進展，在市場復甦時實現成長並恢復更高的盈利水平，同時管理充滿挑戰的市場條件的短期影響。我們再次公佈了整體盈利能力的提高，並且隨著我們朝著長期利潤目標邁進，我們正在實現利潤行動的好處。我們受益於對新產品創新的關注，以提高我們銷售組合的獲利能力。我們正在實現效率提升，這反映了我們製造投資的影響，並且我們透過持續的產品設計和採購計劃專注於長期供應鏈機會，為明年提供更大的改進。

While market conditions have proven to be increasingly challenging, the inventory destocking, which has impacted our commercial and residential businesses will largely be normalized as we enter 2024 and we will start the year competitively positioned better than ever. At Commercial Foodservice, we have extended our leadership in electrified energy-efficient and ventless cooking solutions. We have rapidly developed an innovative platform with exciting ice and beverage products in a large and growing market, and we are well on our way to establishing Middleby as the leader in controls, IoT and automated solutions positioning us to capture the future of the commercial foodservice industry.

儘管市場狀況已被證明越來越具有挑戰性，但隨著我們進入2024 年，影響我們商業和住宅業務的庫存去庫存將在很大程度上正常化，我們將在新年伊始處於比以往更好的競爭地位。在商業餐飲服務領域，我們擴大了在電氣化節能和無通風烹飪解決方案方面的領先地位。我們在一個龐大且不斷成長的市場中快速開發了一個創新平台，提供令人興奮的冰和飲料產品，我們正在努力將米德爾比打造成控制、物聯網和自動化解決方案領域的領導者，使我們能夠抓住商業餐飲服務的未來產業。

At residential, we have the broadest portfolio of indoor and outdoor premium brands with a pipeline of innovation addressing the growing demand for energy-efficient electrified products and with initial launches of connected equipment now in the marketplace with more to come. At Food Processing, we have executed on our strategy of becoming a leading provider of best-in-class full-line integrated solutions for the protein and bakery markets. We are offering state-of-the-art automation to address growing labor and efficiency challenges and we have developed a portfolio of equipment to support our customers' efforts to achieve the sustainability goals for their operations. We have successfully expanded in new markets such as bacon, cured meats, alternative protein and pet foods with additional targeted applications providing further growth opportunities ahead.

在住宅領域，我們擁有最廣泛的室內和室外優質品牌產品組合，並透過一系列創新來滿足對節能電氣產品不斷增長的需求，並在市場上首次推出連網設備，並將推出更多產品。在食品加工領域，我們執行的策略是成為蛋白質和烘焙市場一流的全系列整合解決方案的領先供應商。我們提供最先進的自動化來應對日益增長的勞動力和效率挑戰，並且我們開發了一系列設備來支援客戶努力實現其營運的永續發展目標。我們已成功拓展了培根、醃肉、替代蛋白和寵物食品等新市場，並透過其他有針對性的應用為未來提供了進一步的成長機會。

Our substantial go-to-market investments, we believe, are uniquely positioning us for long-term sustainable growth. With great progress made in establishing our digital sales and marketing capabilities, developing our industry-leading culinary teams and the alignment of our sales channel and strategic partners. The investments we have made in our innovation centers continues to prove to be a strategic asset for our businesses, engagement at these innovation centers continues to be meaningful and is providing benefits across our commercial, residential and food processing businesses. We are confident these investments of today are translating into a pipeline of opportunities ahead and we are in the early chapters of realizing the impact for all of our foodservice brands.

我們相信，我們大量的市場投資為我們的長期永續成長奠定了獨特的地位。我們在建立數位銷售和行銷能力、發展行業領先的烹飪團隊以及協調銷售管道和策略合作夥伴方面取得了巨大進展。事實證明，我們對創新中心的投資仍然是我們企業的策略性資產，這些創新中心的參與仍然有意義，並為我們的商業、住宅和食品加工業務帶來了好處。我們相信今天的這些投資正在轉化為未來的一系列機遇，我們正處於實現對我們所有餐飲服務品牌影響的早期階段。

While market conditions are undoubtedly more challenging across our businesses, given the effects of interest rates and macro conditions, we're continuing to focus on our business execution, while building upon our growing competitive advantage at each of our three industry-leading food service businesses that we are confident will set us apart in the long term.

儘管考慮到利率和宏觀條件的影響，市場狀況無疑對我們的業務更具挑戰性，但我們將繼續專注於我們的業務執行，同時在我們三個行業領先的食品服務業務中建立我們日益增長的競爭優勢從長遠來看，我們有信心使我們與眾不同。

I'll now pass the call over to James to spotlight our ice businesses. It's a great fast-growing part of our exciting beverage platform, a great example of recent strategic investments that we have made both through acquisition and new product innovation that have positioned us for a growth opportunity in a large and addressable market. James?

現在我將把電話轉給詹姆斯，重點介紹我們的製冰業務。它是我們令人興奮的飲料平台中快速成長的重要組成部分，也是我們最近透過收購和新產品創新進行的策略投資的一個很好的例子，這些投資使我們在一個龐大的潛在市場中獲得了成長機會。詹姆士？

Thank you, Tim. I'm going to deviate for peer NPI and technical discussion this quarter to talk about one of our fastest-growing segments, Ice. With the acquisition of ICETRO over a year ago, Middleby is more than a nugget or Chewblet Ice company. By the way, Chewblet is [followed] proprietary and trademark name for it's nugget ice. We have the ability to satisfy demand for all types of ice, whether it's Chewblet, nugget from ICETRO, Cube, 1/2 Cube or shaved ice.

謝謝你，提姆。本季我將偏離同業 NPI 和技術討論的主題，來談談我們成長最快的細分市場之一——Ice。一年多前收購 ICETRO 後，Middleby 不再是 Nugget 或 Chewblet Ice 公司。順便說一句，Chewblet 是其塊冰的專有名稱和商標名稱。我們有能力滿足對所有類型冰的需求，無論是 Chewblet、ICETRO 冰塊、方冰、1/2 方冰或刨冰。

Our Ice portfolio has been one of the fastest-growing segments and commercial food service in 2023. And with the trend and the addition of two new ICETRO products, we believe we'll see growth in the range of $50 million in 2024 with the growth continuing in the following years. This growth is fueled by new trends -- marketplace trends around Chewblet ice as well as ICETRO's growth in the U.S. and international markets as we go after Ice's, $1.75 billion to $2 billion global market space.

我們的Ice 產品組合是2023 年成長最快的細分市場和商業食品服務之一。隨著這一趨勢以及兩款新ICETRO 產品的增加，我們相信到2024 年我們將看到5,000 萬美元的成長。在接下來的幾年裡繼續。這種成長是由新趨勢推動的——Chewblet 冰的市場趨勢以及 ICETRO 在美國和國際市場的成長，因為我們正在追求 Ice 17.5 億至 20 億美元的全球市場空間。

Now on to trends. It's no secret cold beverages are growing at a very fast rate. In 2022, cold beverage sales increased 15% over hot beverages, while a leading coffee chain sees as much as 75% of their beverage mix being cold. This growth has led our customers to focus on more than just ingredients to craft their best beverage. They now appreciate ICE's role in making the best ice coffee ice craft beverages, blended beverages and fountain drinks. [Follett's] Chewblet ice produces the highest quality and highest margin rate for our customers. This is for several reasons. First, chewblet ice chills the beverage faster due to its total surface area. It dilutes the beverage less as it has a higher percentage of frozen water compared to regular ice and it allows the ice to absorb the flavor extending the beverage experience once your soda or coffee is long gone, thus giving you a beverage that keeps on giving.

現在談談趨勢。眾所周知，冷飲的成長速度非常快。到 2022 年，冷飲銷量將比熱飲增長 15%，而一家領先的咖啡連鎖店預計其飲料組合中多達 75% 是冷飲。這種成長使我們的客戶不僅僅關注原料來製作最好的飲料。他們現在很欣賞 ICE 在製作最好的冰咖啡、冰工藝飲料、混合飲料和噴泉飲料方面所發揮的作用。 [Follett's] Chewblet 冰為我們的客戶提供最高的品質和最高的利潤率。這是有幾個原因的。首先，咀嚼冰由於其總表面積，可以更快地冷卻飲料。與普通冰塊相比，它對飲料的稀釋程度較低，因為它具有更高比例的冷凍水，並且可以讓冰塊吸收風味，在蘇打水或咖啡喝完後延長飲料體驗，從而為您提供持續提供的飲料。

Follett's chewblet ice is also safer and more sanitary as follows proprietary extrusion making process allowed us to extrude (inaudible) ice up to 75 feet from the icemaker to two remote locations within the restaurant without employees having to carry buckets of ice or handle ice.

Follett 的咀嚼冰也更安全、更衛生，因為專有的擠壓製作工藝使我們能夠將（聽不見）冰從製冰機擠壓到餐廳內的兩個偏遠位置，距離製冰機長達75英尺，而員工無需攜帶冰桶或處理冰塊。

With everything I've said, you would be surprised that nugget ice is only around 20% of the global Ice business. The other 80% is cubed ice. With the introduction of our latest machines from ICETRO, the 1,700-pound and 2,000 pound machines, which now complete ICETRO's full production lineup ICETRO now has the ability to compete and take global market share as we look to expand our cubed ice business. ICETRO machines have a proven track record of reliability globally and have many features that benefited from our competition, such as multi ingress and egress cooling, split panel access for sanitary servicing and a proprietary planning process to name a few.

綜上所述，您可能會驚訝地發現塊冰僅佔全球冰塊業務的 20% 左右。另外80%是冰塊。隨著 ICETRO 最新機器的引進，1,700 磅和 2,000 磅機器現已完善了 ICETRO 的完整生產陣容，隨著我們尋求擴大我們的方冰業務，ICETRO 現在有能力競爭並佔據全球市場份額。 ICETRO 機器在全球範圍內擁有良好的可靠性記錄，並具有許多從我們的競爭中受益的功能，例如多入口和出口冷卻、用於衛生服務的分面板訪問以及專有的規劃流程等。

In the last comment before I turn it over to Brian, all Middleby products require water use filters from TERRY Water Filtration. And when it comes to ice, we believe that Terry's H2O CITRYNE water filter provides our customers with the best tasting ice.

在我將其交給 Brian 之前的最後評論中，所有 Middleby 產品都需要 TERRY Water Filtration 的用水過濾器。說到冰，我們相信 Terry 的 H2O CITRYNE 濾水器為我們的客戶提供最美味的冰。

Thank you, and over to you, Bryan.

謝謝你，布萊恩。

Thanks, James. I'm torn now, do I leave my chewblet ice in my drink to keep it working, so my drink stays colder longer. Or do I chew it as I also enjoy to do it. I don't know. I'm really torn, but more importantly, Q3 gave us a lot to be excited about. Our performance was at record profitability levels and we also had record for operating cash flows for a quarter. We are on track for our best year ever in terms of EBITDA and operating cash flow generation, and we are achieving this while facing challenging market conditions.

謝謝，詹姆斯。我現在很困惑，我是否應該將咀嚼片冰留在飲料中以保持其作用，以便我的飲料保持更冷的時間更長。或者我會咀嚼它，因為我也喜歡這樣做。我不知道。我真的很糾結，但更重要的是，第三季給了我們很多值得興奮的東西。我們的業績達到了創紀錄的獲利水平，我們的一個季度的營運現金流也創下了紀錄。就 EBITDA 和營運現金流產生而言，我們有望迎來有史以來最好的一年，而且我們在面臨充滿挑戰的市場條件的同時實現了這一目標。

Despite these challenges, we still delivered growth in two of our segments, while achieving $981 million of revenue and an organic adjusted EBIT margin of 23% up 100 basis points from Q2 and up even more over the prior year. With nearly $224 million of adjusted EBITDA in the quarter, over the last 12 months, we are at nearly $900 million, an increase of over 10% from the prior LTM period. We continue to increase our profitability, EBITDA and cash flow generation, even while in the midst of especially tough times for one of our segments. This demonstrates the resilience of our business model, which drives exceptional profitability and cash flows even in tough times. Amongst our strengths is our ability to execute in all conditions.

儘管面臨這些挑戰，我們的兩個細分市場仍然實現了成長，同時實現了9.81 億美元的收入和23% 的有機調整後息稅前利潤率，較第二季度增長100 個基點，甚至比上一年增長更多。本季調整後 EBITDA 接近 2.24 億美元，在過去 12 個月中，我們的調整後 EBITDA 接近 9 億美元，比上一個 LTM 期間成長了 10% 以上。即使我們的某個細分市場正處於特別困難的時期，我們仍繼續提高獲利能力、息稅折舊攤提前利潤 (EBITDA) 和現金流產生。這證明了我們業務模式的彈性，即使在困難時期也能帶來卓越的獲利能力和現金流。我們的優勢之一是我們在各種條件下的執行能力。

While our total organic revenue was down due to the residential headwinds, we were still able to grow our adjusted EBITDA dollars for the quarter, 5% over the prior year. Our total company margins expanded 140 basis points or 160 basis points organically over the prior year as well. All the margin values I will discuss hereafter are on an organic basis, meaning excluding any acquisitions and FX impacts. GAAP earnings per share were $2.01, adjusted EPS and which excludes amortization expense and nonoperating pension income as well as other items noted in the reconciliation at the back of our press release, was $2.35 and 8% increase over the prior year. Commercial Foodservice revenues were up slightly organically over the prior year. Their adjusted EBITDA margin was 28.7%, up 200 basis points over the prior year. We are very pleased with how margins have continued to evolve as we see benefits from improved product mix from our capital investments, from operational improvements as we integrate acquired businesses as well as from our constant focus on costs.

儘管我們的有機總收入因住宅市場不利因素而下降，但本季調整後的 EBITDA 美元仍比上年增長 5%。我們公司的總利潤率也比前一年有機成長了 140 個基點或 160 個基點。我在下文中討論的所有保證金值都是有機的，這意味著不包括任何收購和外匯影響。 GAAP 每股收益為2.01 美元，調整後每股收益（不包括攤銷費用和營業外養老金收入以及我們新聞稿後面的調節表中提到的其他項目）為2.35 美元，比上一年增長8 %。商業餐飲服務收入較上年略有有機成長。調整後的 EBITDA 利潤率為 28.7%，比上年增長 200 個基點。我們對利潤率的持續成長感到非常滿意，因為我們看到了資本投資所帶來的產品組合改善、整合收購業務時的營運改善以及我們對成本的持續關注所帶來的好處。

In residential, we saw organic revenue decline of 21% versus 2022. The adjusted EBITDA margin was a little over 10%. For Food Processing, revenues of nearly $167 million represents an increase of a little over 1% organically, with year-to-date growth of over 16%. Our adjusted EBITDA margin was 26.6% for the quarter, up 440 basis points over the prior year and we are just above 24% for the year. Our operating cash flow generation was a record at $219 million for the quarter. Over the past two quarters, we have reduced inventory levels by nearly $100 million. Over the last 12 months, our operating cash flows amounted to $532 million. In terms of cash conversion, our free cash flow for the last 12 months is at 97% of net income, and I expect it to be over 100% for fiscal 2023. As we close Q3, our total leverage ratio moved down to 2.75x. Looking forward, if we were not to make any acquisitions or stock buybacks, our leverage could move down to around 2x by the end of 2024 and we currently have over $2.5 billion of borrowing capacity.

在住宅領域，我們的有機收入較 2022 年下降了 21%。調整後的 EBITDA 利潤率略高於 10%。對於食品加工，營收近 1.67 億美元，有機成長略高於 1%，今年迄今成長超過 16%。本季調整後 EBITDA 利潤率為 26.6%，比上年增長 440 個基點，全年略高於 24%。本季我們的營運現金流創歷史新高，達 2.19 億美元。過去兩個季度，我們的庫存水準減少了近 1 億美元。過去 12 個月，我們的營運現金流達 5.32 億美元。在現金轉換方面，我們過去 12 個月的自由現金流佔淨利潤的 97%，我預計 2023 財年將超過 100%。當我們結束第三季時，我們的總槓桿率降至 2.75 倍。展望未來，如果我們不進行任何收購或股票回購，到 2024 年底，我們的槓桿率可能會降至 2 倍左右，目前我們擁有超過 25 億美元的借貸能力。

While market conditions or a revenue headwind, our focus on operational excellence, differentiated products and technologies and deep connectivity with our customers are driving our strong results. Middleby has always been known for healthy margins and cash flows. We are consistently growing them and the trend will continue. We remain bullish on our outlook over the coming years. Our actual margins are near our medium-term targets for commercial and food processing. We anticipate achieving our target margins for these two segments on a full year basis within the next 2 fiscal years. Residential continues to be profitable at levels well above peers. We have been taking actions to manage costs, while still investing in go-to-market strategies, production improvements, developing new products and entering new markets. These efforts, along with the benefits that will come from improved market conditions will keep us on track to reach our long-term goal of 25%, albeit taking longer and being harder to predict when given the current economic conditions. Nonetheless, given we do anticipate a period of high growth as housing and economic conditions improve, I will speculate that we can reach our target in 3 to 4 years.

儘管市場狀況或收入不利，但我們對卓越營運、差異化產品和技術以及與客戶的深入聯繫的關注正在推動我們取得強勁的業績。米德爾比一直以健康的利潤和現金流而聞名。我們一直在不斷種植它們，而且這種趨勢將會持續下去。我們仍然看好未來幾年的前景。我們的實際利潤接近商業和食品加工的中期目標。我們預計在未來 2 個財年內實現這兩個細分市場的全年目標利潤率。住宅業務的獲利水準持續遠高於同業。我們一直在採取行動來管理成本，同時仍在投資市場策略、生產改進、開發新產品和進入新市場。這些努力，加上市場狀況改善的好處，將使我們能夠實現 25% 的長期目標，儘管考慮到當前的經濟狀況，這需要更長的時間並且更難以預測。儘管如此，鑑於我們確實預計隨著住房和經濟狀況的改善，將出現一段高增長時期，我推測我們可以在 3 到 4 年內實現我們的目標。

Bringing it back to the near term, here are some quick thoughts on what we think '23 will conclude. Starting with Resi. Last quarter, I noted that we expected Q3 to hopefully be the trough, and our results obviously reflect the challenging market conditions. Nonetheless, we do expect that Q4 can produce higher revenues than Q3 and at least maintain double-digit EBITDA margins. For food processing, Q4 will see higher revenues than Q3 and likely at least similar margins. For commercial, I expect Q4 to overall be fairly consistent with Q3 given current demand and the tail end of dealer destocking. Putting the three segments together, when looking at the total company potential Q4 performance, revenue and earnings should be on par or slightly higher than Q3.

回到近期，以下是我們對「23」將會得出的結論的一些快速思考。從雷西開始。上個季度，我指出我們預計第三季有望成為谷底，我們的結果顯然反映了充滿挑戰的市場狀況。儘管如此，我們確實預計第四季能夠產生比第三季更高的收入，並且至少保持兩位數的 EBITDA 利潤率。對於食品加工，第四季度的收入將高於第三季度，並且可能至少有相似的利潤率。對於商業而言，考慮到當前需求和經銷商去庫存的尾聲，我預計第四季度將總體上與第三季相當一致。將這三個部門放在一起，在考慮公司第四季度的整體潛在業績時，收入和收益應該與第三季度持平或略高。

Looking beyond the fourth quarter, it is obviously hard to know with great certainty what 2024 will look like. However, I will share that our expectation is for modest top line growth and expanding margins across all our segments. For residential, our belief is generally based on the view that crrent market conditions will persist through the first half of the year, and we remain optimistic in believing there can be some improvements in the second half of the year. For food processing, interest rates in food costs continue to be a headwind. Nonetheless, given our backlog, pending opportunities and the benefits our full-line solutions offer, including addressing the demand for automation food processing should see growth.

展望第四季之後，顯然很難確切知道 2024 年會是什麼樣子。然而，我要分享的是，我們的期望是我們所有部門的收入適度成長並擴大利潤。對於住宅，我們的看法總體上是基於這樣的觀點，即當前的市場狀況將持續到今年上半年，我們仍然樂觀地相信下半年會出現一些改善。對於食品加工來說，食品成本的利率仍然是一個阻力。儘管如此，考慮到我們的積壓、懸而未決的機會以及我們的全線解決方案提供的好處，包括滿足自動化食品加工的需求，應該會看到成長。

Lastly, in commercial, while buying patterns have been somewhat volatile when considering our customers' ongoing build plans, rollout activities increasing customer engagement with our leading technologies and a bit of elevated backlog, we also believe we will grow. And while these comments have been revenue focused, we also expect to deliver more margin expansion. We've updated our view on that journey within the slides posted today. And regardless of market conditions, we remain focused on improving our sales mix. This has been a big contributor to the improvements seen to date as our best solutions solve our customers' most pressing needs. Furthermore, we are relentless and attacking costs, integration projects and driving operational efficiencies. Managing all these areas keeps us moving forward toward our targets.

最後，在商業方面，雖然考慮到客戶正在進行的構建計劃、提高客戶對我們領先技術的參與度的推出活動以及一些積壓的增加，購買模式有些不穩定，但我們也相信我們將會成長。雖然這些評論主要關注收入，但我們也期望實現更多的利潤率擴張。我們在今天發布的幻燈片中更新了我們對這趟旅程的看法。無論市場狀況如何，我們仍然專注於改善我們的銷售組合。這對迄今為止的改進做出了巨大貢獻，因為我們的最佳解決方案解決了客戶最迫切的需求。此外，我們堅持不懈地降低成本、整合專案並提高營運效率。管理所有這些領域使我們能夠朝著我們的目標前進。

In conclusion, we are being disciplined. We are managing costs we are focused on operational excellence. We are also continuing to make strategic investments that drive differentiated products and best-in-class go-to-market capabilities. Our technical strengths, strong customer relationships and leading innovations will continue to drive success. This means even better cash flows and expanding margins. We are all hungry for the higher stock price we deserve based on the level of earnings, profitability and cash flow we have delivered. In the meantime, I'm off to our amazing new residential showroom in Chicago to see what our newest chefs, Kristin and Amy have created. Please stop by to experience our amazing platform for yourselves. And with that, thank you for listening, and we will now take your questions.

總之，我們正在受到紀律處分。我們在管理成本時專注於卓越營運。我們也將繼續進行策略性投資，以推動差異化產品和一流的上市能力。我們的技術優勢、強大的客戶關係和領先的創新將繼續推動成功。這意味著更好的現金流和不斷擴大的利潤。根據我們所交付的收益、獲利能力和現金流水平，我們都渴望獲得更高的股價。同時，我將前往我們位於芝加哥的令人驚嘆的新住宅陳列室，看看我們最新的廚師克里斯汀和艾米創造了什麼。請親自過來體驗我們令人驚嘆的平台。感謝您的聆聽，我們現在將回答您的問題。

(Operator Instructions). The first question is from Saree Boroditsky of Jefferies.

（操作員說明）。第一個問題來自 Jefferies 的 Saree Boroditsky。

So Residential, it took another step down this quarter. Can you just break out the performance in Grills versus the remainder of the business? How do you think about underlying demand versus destocking? And lastly, is there any benefit from lapping the destock as we think about growth next year?

因此，住宅業務本季又下降了一步。能否簡單介紹一下 Grills 與其他業務的績效對比？您如何看待潛在需求與去庫存？最後，當我們考慮明年的成長時，去庫存有什麼好處嗎？

This is Bryan. At this point, I would say that grills are not really a -- I'll call it, a differentiated performer versus the other product lines we have. There are challenges in a variety of them and some bright spots as well. But as we've noted before, Q3 is always the low point of the year for that Grill business. And given where stocks are and such, we're not expecting much growth there. And we've noted that our customers are expected to order in, in a different manner. And with different timing, I would say, for this upcoming growth season that's -- or the one that's really kind of just starting than in the past where they're going to order a little bit later in the season and restocking probably for more domestic shipments than from the direct plant sources.

這是布萊恩。在這一點上，我想說，與我們擁有的其他產品線相比，烤架並不是真正的——我稱之為差異化表演者。其中既有挑戰，也有亮點。但正如我們之前指出的，第三季始終是燒烤業務的一年中的最低點。考慮到庫存狀況等，我們預計不會有太大成長。我們注意到，我們的客戶預計會以不同的方式訂購。我想說的是，對於即將到來的生長季節來說，時機不同，或者說與過去相比，這個生長季節實際上才剛剛開始，他們將在本季晚些時候訂購，並可能為更多的國內產品重新進貨。出貨量高於直接工廠來源的出貨量。

So Q4 will still be a bit of a challenge then given that we're in these trying times, and we were still in the last year. And we think things really improve as we move into the back half of the year and then have the easier comps, obviously, to lap. I know there was another part of your question in there, but you threw a bunch. I mean, can you remind me what I'm missing there?

因此，考慮到我們正處於艱難時期，而且我們仍處於去年，第四季度仍然會是一個挑戰。我們認為，當我們進入下半年時，情況確實會有所改善，然後顯然會有更容易的比賽。我知道你的問題還有另一部分，但你拋出了一堆。我的意思是，你能提醒我我錯過了什麼嗎？

Yes. Just how are you thinking about underlying [destocking] and then just the benefit of that destock as we think about next year.

是的。您如何看待潛在的[去庫存]以及我們明年考慮的去庫存的好處。

Yes. So Saree, I mean, I think the destock turns into a tailwind at some point, right, because the sell-through is higher, obviously, than what our incoming order rates are as inventories coming out of the channel. And then as Bryan alluded to, people are also less reticent to stock back up because a couple of reasons not only the market outlook, but our lead times are much shorter than they were before as well. So I think as you play that out and you go through next year, the destock, which is a negative even if it's neutral, that's a positive for us. So -- and then also on the orders, I mean we've seen them kind of trough out, so to speak, as well. So I mean I think they're starting to albeit at much lower levels, they're starting to normalize and inflect back up. So I think we're getting close to the turn. But again, a lot of uncertainty and market conditions going into next year.

是的。所以薩雷，我的意思是，我認為去庫存在某個時候會變成順風，對吧，因為銷售量顯然高於我們的訂單率，因為庫存從渠道中出來。正如布萊恩所提到的，人們對庫存備份不再那麼猶豫，因為不僅有市場前景的原因，而且我們的交貨時間也比以前短得多。因此，我認為，當你在明年進行這項工作時，庫存減少，即使是中性的，也是負面的，這對我們來說是積極的。所以——然後在訂單方面，我的意思是我們也看到它們陷入了低谷，可以這麼說。所以我的意思是，我認為儘管水平要低得多，但它們已經開始正常化並回升。所以我認為我們已經接近轉折點了。但明年仍存在許多不確定性和市場狀況。

I appreciate the additional color. Can you just talk about what you're seeing from an order perspective in food processing? You talked about growing next year. But how do we think about the benefit of incoming backlog on this year? And does that create a challenging comp for organic growth in 2024?

我很欣賞額外的顏色。您能從食品加工的訂單角度談談您所看到的情況嗎？你談到了明年的成長。但我們如何看待今年收到的積壓訂單的好處呢？這是否會為 2024 年的有機成長帶來挑戰？

Yes. This is Bryan. We certainly had very strong backlogs entering this year. But a lot of these projects take a while. And I would say we still have very healthy backlogs today so that is part of the reason that gives us confidence looking into next year, again, looking at what's in the backlog and knowing when those projects continue. The orders have been steady the past couple of quarters, albeit not at the highest levels that we had seen, let's say, maybe the middle end of last year, again, given the interest rate environment and what's going on with underlying food costs. But there still is a lot of interest out there. We still are engaging with our customers. We are still winning opportunities, and they're also looking at, they believe inflection point on some of the food costs, which we hope can open up to more robust ordering times. And then we'll also see how interest rates play out. I think Tim might add.

是的。這是布萊恩。今年我們確實有非常多的積壓訂單。但很多這樣的專案都需要一段時間。我想說的是，我們今天仍然有非常健康的積壓工作，因此這是讓我們對明年充滿信心的部分原因，再次查看積壓工作中的內容並了解這些項目何時繼續。過去幾季的訂單一直穩定，儘管考慮到利率環境和基本食品成本的情況，但並未達到我們所見過的最高水平，比如說，也許是去年年中的水平。但仍然有很多人感興趣。我們仍在與客戶互動。我們仍在贏得機會，他們也在關注，他們認為某些食品成本出現拐點，我們希望這可以帶來更強勁的訂購時間。然後我們還將看看利率如何發揮作用。我想蒂姆可能會補充。

The only other thing I'll add to our pipeline is very strong. So that's one of the things that we track. So that has actually grown. I think what we're seeing is that there's a bit of seeing a little bit longer to place orders, right, given where interest rates are and kind of understanding the outlook for next year with input prices for them, which is largely food. But I think we're -- what is promising is the level of activity, quoting what is that pipeline just a little bit longer for that to convert right now in this period. But I think that right now, given we've got a strong backlog coming in and a solid pipeline, we feel pretty good about next year. The baking part of our business seems to be stronger right now. We just came off a trade show, which was an industry trade show, and we have got a very strong activity at that show. So that was promising as well. And I would say across the platform, we have made a lot of new products that are there and certainly built out the full-line solution. So those are really of interest to our customers because they're hitting on all the -- I'll say, key pain points for their business right now.

我要添加到我們的管道中的唯一其他東西是非常強大的。這就是我們跟踪的事情之一。所以這實際上已經增長了。我認為我們看到的是，考慮到利率水平以及對明年的投入價格（主要是食品）的前景的了解，下訂單的時間會更長一些，對吧。但我認為我們 - 有希望的是活動水平，引用該管道的長度，以便在這一時期立即進行轉換。但我認為，鑑於我們現在有大量的積壓訂單和堅實的管道，我們對明年感覺很好。我們業務的烘焙部分現在似乎更強大。我們剛結束了一個貿易展，這是一個行業貿易展，我們在該展會上的活動非常活躍。所以這也是有希望的。我想說的是，在整個平台上，我們已經製造了許多新產品，當然也建構了全線解決方案。因此，我們的客戶確實對這些感興趣，因為他們正在解決他們目前業務的所有關鍵痛點。

The next question is from Jeff Hammond of KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Jeff Hammond。

John, welcome aboard. Just I guess, on Commercial Foodservice, I'm just trying to parse out kind of this continued destocking versus demand weakening, wherein particularly, are you seeing demand weakness any cracks in new store development as you look into next year? And just maybe lastly, how far along are we in this -- with this destock?

約翰，歡迎加入。我想，在商業餐飲服務方面，我只是想分析這種持續去庫存與需求疲軟之間的關係，特別是，當您展望明年時，您是否看到需求疲軟，新店開發是否出現裂縫？也許最後，我們在減少庫存方面進展到了什麼程度？

Yes, Jeff, it's Steve. I would say maybe we'll start with kind of what the end user we're seeing. I think we've talked about on prior calls, obviously, the bigger chains have had a pretty healthy new store build plan really in the last year or two, I do think that continues. But what we have seen is some shifting around of that pipeline moving out a bit just with challenges they're having on whether it's permitting or construction, still some supply chain issues that are faced on construction. So in interest rates, pushing some of those stores out into next year at this point. So I would say they haven't reduced any of their kind -- overall pipeline. It's just more of a timing that's pushed out. That push out does play a role then into the destocking side of it because a lot of where we've seen the excess inventory in the channel show up has actually been for chain customers, right? Think about the last year or two with longer lead times, the dealers or the KS is replacing orders far out trying to bring in inventory to keep up with the chain demand.

是的，傑夫，是史蒂夫。我想說也許我們會從我們所看到的最終用戶的情況開始。我想我們在之前的電話中已經討論過，顯然，在過去的一兩年裡，較大的連鎖店確實制定了相當健康的新店建設計劃，我確實認為這種情況仍在繼續。但我們看到的是，該管道發生了一些變化，只是因為他們在許可或施工方面遇到了挑戰，在施工過程中仍然面臨一些供應鏈問題。因此，在利率方面，目前將其中一些商店推遲到明年。所以我想說他們沒有減少任何類似的整體管道。這只是一個被推遲的時間。這種推出確實在去庫存方面發揮了作用，因為我們看到頻道中出現的許多過剩庫存實際上都是針對連鎖客戶的，對吧？想想過去一兩年，交貨時間較長，經銷商或 KS 正在更換訂單，試圖增加庫存以滿足連鎖需求。

And as we've caught up on our side and then some of the stores pushing out, that's what's creating this excess inventory in the channel. So I do think we are on definitely the back side of it. I mean, again, I think the positive is being very close with a lot of our dealer channel partners. They're seeing the sell-through on their side to become more and more positive. I think it's just a matter of time, obviously, I think over the next quarter or two where the destock becomes less of a headwind than we kind of get back to "more of a normal ordering pattern." Does that make sense?

當我們追趕上來，然後一些商店推出時，這就是渠道中庫存過剩的原因。所以我確實認為我們肯定處於它的背面。我的意思是，我認為積極的一面是與我們的許多經銷商通路合作夥伴非常密切。他們看到自己的銷售情況變得越來越正面。我認為這只是時間問題，顯然，我認為在接下來的一兩個季度，去庫存將不再是一個阻力，而是我們會回到「更正常的訂購模式」。那有意義嗎？

Yes, that's very helpful. Just on the margin targets. I understand Res Kitchen probably need some volume help. But as you look at commercial food and food processing. I guess if we were to have kind of a flattish demand environment in the next 2 years, do you see yourself being able to get to those margin targets within that time frame? Just kind of how much does self-help and how much needs to come from kind of volume tailwind.

是的，這非常有幫助。只是在利潤目標上。我知道 Res Kitchen 可能需要一些音量的幫助。但當你看看商業食品和食品加工時。我想如果我們在未來兩年內的需求環境趨於平淡，您認為自己能夠在這段時間內實現這些利潤目標嗎？只是有多少是自助，有多少需要來自數量的順風。

This is Bryan. There is not a, I'll call it, an overweighted amount of that comes from volume. I mean volume is somewhat of a contributor because I think the volume also gets after customers adopting more of that leading technologies and such. But I think if you look at -- we'll actually post some bar chart, some waterfall charts on it by tomorrow morning as we'll be attending a conference. And you'll see, I'll say, 3/4 of the driver of it are from mix or self-help type measures, whether it's improving costs, the integration activities and the like.

這是布萊恩。我稱之為，不存在來自成交量的超重量。我的意思是數量在某種程度上是一個貢獻者，因為我認為在客戶採用更多領先技術等之後，數量也會增加。但我想如果你看一下——我們實際上會在明天早上發布一些長條圖和一些瀑布圖，因為我們將參加一個會議。我會說，你會看到，3/4 的驅動因素來自混合或自助類型的措施，無論是改善成本、整合活動等等。

The next question is from Tim Thein of Citi.

下一個問題來自花旗銀行的 Tim Thein。

I think, Brian, I think you're touching on this, but just going back to a year ago, being down in Dallas, you outlined some of the drivers for commercial to get to that journey to 30% plus margins and price cost and sales mix were two big drivers of that. You've touched a lot on the sales mix. Where are we in terms of price cost and obviously, the market outlook isn't quite as robust as it was a year ago. I'm just curious as to your confidence level in terms of that being significant of a tailwind for Middleby looking out to '24 and beyond.

我想，布萊恩，我想你正在觸及這個問題，但回到一年前，在達拉斯，你概述了一些商業驅動因素，以達到 30% 以上的利潤和價格成本，銷售組合是其中的兩大驅動因素。您對銷售組合的影響很大。就價格成本而言，我們處於什麼位置，顯然，市場前景並不像一年前那麼強勁。我只是好奇你對米德爾比 24 年及以後的發展有重大推動力的信心程度。

Yes. As I look at it, I'll say in commercial that we're operating, let's call it, around 27.5% or so, right? And we need to get to 30% over the next couple of years. How we've gotten to the 27.5% over the past couple of years. Obviously, there's been some price costs in there as well as the self-help and a bunch of mix. As we look at what's left to be done, I would say price cost is a good chunk of it. But a lot of that at this point. I will say it's more of the cost side of it as opposed to the price side of it because we think pricing will be more moderate going forward. But we do have some cost benefit coming through as we work down inventory and as we manage our costs and look at what's happening in commodities, as well.

是的。當我看到它時，我會在廣告中說，我們正在運營，我們稱之為，大約 27.5% 左右，對嗎？我們需要在未來幾年內達到 30%。過去幾年我們如何達到 27.5%。顯然，其中存在一些價格成本以及自助和一堆混合成本。當我們考慮剩下的工作時，我想說價格成本佔了很大一部分。但目前有很多這樣的事情。我會說這更多是成本方面而不是價格方面，因為我們認為未來定價將更加溫和。但當我們減少庫存、管理成本並關注大宗商品的情況時，我們確實獲得了一些成本效益。

So again, fortunately, this journey is not just dependent on volume or it isn't just dependent on, again, taking price. And again, you'll see by tomorrow that price piece of it is not as much. But we still have operating efficiencies and acquisition integration, maturing of businesses we had a little bit of volume of some undersized businesses helps as well. And again, mix is not one to be, I'll say, underappreciated either.

幸運的是，這趟旅程不僅取決於數量，也不僅僅取決於價格。再說一次，到明天你會發現它的價格並沒有那麼高。但我們仍然擁有營運效率和收購整合，我們擁有一些較小的業務的少量業務的成熟也有所幫助。我再說一遍，混合也不是一個被低估的人。

Got it. Okay. And then I don't know if it's for you or Steve. Where would you to the extent you can get at this, where revenues for commercial will be, call it, 30% higher than pre-COVID or since 2019. Where do you think volumes for that business are relative to '19? I'm just curious how much -- where we sit just from a throughput standpoint compared to that time.

知道了。好的。然後我不知道這是否適合你或史蒂夫。你能達到什麼程度，商業收入將比新冠疫情前或 2019 年以來高出 30%。你認為該業務的銷量與 19 年相比如何？我只是好奇與當時相比，從吞吐量的角度來看，我們處於什麼位置。

This is Bryan. I'll start with it, and then Steve can jump in. Volumes are a tough one to put out there just given how many different brands we have out there. But I think as you look to correlate that also with looking at, I'll say, the number of establishments that are out there, there is building going on. But I wouldn't say that volumes are up appreciably, obviously, we've had a good amount of pricing coming in over that period and then you are starting -- have been seeing some of the benefits from, I'll call it, the unit expansion, but we believe there's more volume gains to be had as build-out plans continue. And as people trade into higher technology solutions.

這是布萊恩。我將從它開始，然後史蒂夫可以介入。考慮到我們有多少不同的品牌，要發布數量是一件很困難的事情。但我認為，當你將其與現有機構的數量聯繫起來時，我會說，正在建設中。但我不會說銷量明顯增加，顯然，我們在這段時間內有大量的定價，然後你開始 - 已經看到了一些好處，我稱之為，單位擴張，但我們相信，隨著擴建計劃的繼續，將會有更多的銷量成長。隨著人們轉向更高技術的解決方案。

Yes, this is Steve. I would just add on to that. I agree with all the comments. Obviously, we've had the benefit of pricing over the last year or two, which certainly gets a little bit tougher from a pricing standpoint going into the next couple of years. So it definitely shifts back to volume. I fundamentally come back to probably three key initiatives Tim, and what's driving that. Again, we talked about new store development that continues. I do think I've said before in prior calls, the replacement cycle that has been kicked down the road from going into COVID, got kicked down the road going through supply chain, new store priority. So I still think you have that underlying replacement cycle that has to take place. And then you still have all the issues that all of our customers still have to address whether it's labor, whether it's utilities going up more and more. So I think when you kind of think about those three underlying demand drivers, that's where I think you really still see the volumes start to pick back up, call it, over the next year or two and away from, obviously, the pricing benefit we've seen in the last 12 to 18 months.

是的，這是史蒂夫。我想補充一下。我同意所有的評論。顯然，我們在過去一兩年中從定價中受益，從未來幾年的定價角度來看，這肯定會變得更加困難。所以它肯定會回到音量上。我從根本上回到了蒂姆可能的三個關鍵舉措，以及推動這項舉措的因素。我們再次討論了仍在繼續的新店開發。我確實想我之前在之前的電話會議中說過，由於新冠疫情而導致的更換週期被推遲了，供應鏈、新店優先事項也被推遲了。因此，我仍然認為必須進行潛在的更換週期。然後，我們所有的客戶仍然需要解決所有問題，無論是勞動力，還是公用事業費用越來越高。因此，我認為，當您考慮這三個潛在需求驅動因素時，我認為您確實仍然會看到銷量在未來一兩年內開始回升，並且顯然遠離我們的定價優勢過去12 到18 個月內見過。

The next question is from Tami Zakaria of JPMorgan.

下一個問題來自摩根大通的塔米·扎卡里亞。

So on Slide 9 of your presentation, I think there are some targets for EBITDA margin for the year. That would suggest both commercial food service and food processing EBITDA margins down sequentially. And so could you walk us through some of the puts and takes behind that sequential step down.

因此，在您簡報的幻燈片 9 中，我認為今年的 EBITDA 利潤率有一些目標。這意味著商業食品服務和食品加工 EBITDA 利潤率將持續下降。那麼您能否向我們介紹順序下降背後的一些看跌和看跌。

I'm going to -- unfortunately -- this is Bryan, by the way, I have to disagree with you. I don't think we are seeing a step down in Q4 versus Q3. I think as I noted, food processing should at least be the same as Q3, and commercial is also expected to be in a similar neighborhood. I mean the numbers in the '23 column there is a rough forecast, a rough estimate for the year in total, not for specifically the fourth quarter. So I don't know if that makes a difference and how are you viewing the numbers versus how we believe it will come to be.

不幸的是，我要——這是布萊恩，順便說一句，我不得不不同意你的觀點。我認為第四季與第三季相比並沒有出現下降。我認為正如我所指出的，食品加工至少應該與第三季相同，商業預計也將位於類似的區域。我的意思是「23」欄中的數字是一個粗略的預測，是對全年總體的粗略估計，而不是具體針對第四季度的估計。所以我不知道這是否會產生影響，以及您如何看待這些數字以及我們對未來的看法。

For sure, for sure. Great. And then my second question is, I think we have heard some home appliance companies in recent weeks talk about some higher promotional activity especially in North America. Is that -- does that also relate to the high-end segment that you service as part of the Residential Kitchen segment. And how are you thinking about price versus price realization in the fourth quarter or even for next year as you prepare for the next spring selling season?

肯定的，肯定的。偉大的。然後我的第二個問題是，我想我們最近幾週聽到一些家電公司談論一些更高的促銷活動，特別是在北美。這是否也與您作為住宅廚房細分市場的一部分提供服務的高端細分市場相關？當您為下一個春季銷售季節做準備時，您如何考慮第四季度甚至明年的價格與實現價格？

Yes. So there's definitely some promotional pricing that's going on at, I'll say, lower levels. I mean I think one of the reasons we've put together the portfolio that we have is it's premium performance. We sit in a different category versus the -- I'll say, the white goods guide. So on the margins, we're trying to be very smart and tactical pricing. Pricing has moved around a lot in the last couple of years given all the inflationary impacts. And so we will look at that tactically. But it's more resilient at that top luxury end of the appliance market. So I mean I think we're not seeing quite the same impact that the other guys would.

是的。因此，我想說，肯定會有一些較低水準的促銷定價。我的意思是，我認為我們整合現有投資組合的原因之一是它的卓越表現。與白色家電指南相比，我們屬於不同的類別。因此，在利潤方面，我們正在努力進行非常明智和有策略的定價。考慮到通貨膨脹的影響，過去幾年定價發生了很大變化。所以我們將從戰術來看這個問題。但它在家電市場的頂級奢侈品領域更具彈性。所以我的意思是，我認為我們沒有看到與其他人相同的影響。

The next question is from Brian McNamara of Canaccord Genuity.

下一個問題來自 Canaccord Genuity 的 Brian McNamara。

First, we're wondering if you're seeing any change in your restaurant customers order behaviors given the recent popularity in these GLP-1 drugs. It feels like several restaurant stocks along with your own have reacted negatively to the news flow over the last couple of months.

首先，我們想知道鑑於這些 GLP-1 藥物最近的流行，您的餐廳顧客的點餐行為是否有任何變化。感覺幾家餐廳股票以及您自己的股票對過去幾個月的新聞流做出了負面反應。

Yes. So it's very early on. I mean I don't think anybody has seen any impact to actual behaviors of orders business, people walk in and if you listen to the CEOs of other restaurant chains, et cetera. So obviously, it's getting a lot of headline news. It's too early to indicate what the long-term ramifications are of that. But I mean I think we don't expect that there would be really any significant long-term impact to our business at this point in time right now.

是的。所以現在還很早。我的意思是，我認為沒有人看到訂單業務的實際行為受到任何影響，人們走進去，如果你聽聽其他連鎖餐廳的執行長的話，等等。顯然，它得到了很多頭條新聞。現在判斷其長期影響還為時過早。但我的意思是，我認為我們目前預計不會對我們的業務產生任何重大的長期影響。

All right. Great. And secondly, can you confirm that your tailored double-sided grills are being trialed with a popular Mexican fast casual grill chain? And if so, how is that testing phase going?

好的。偉大的。其次，您能否確認您定制的雙面烤架正在一家流行的墨西哥快餐休閒燒烤連鎖店進行試用？如果是這樣，測試階段進展如何？

So we never talk about kind of what's been trialed and out there, obviously, sometimes you can walk into a restaurant and see a brand of equipment. So -- but I would just say that we've talked about a lot of our leading automation that we've come out with over the last number of years that are helping drive throughput, labor, small footprint, efficiency, et cetera. Taylor has been certainly one of those products that James has spotlighted in some of the past calls. And it is part of a great example amongst others, such as Ice that James covered on this call that we think are going to be we've got differentiated products that are going to be growth drivers going forward. So I'll just comment that, that is one of those exciting products.

所以我們從不談論已經嘗試過的東西，顯然，有時你走進一家餐廳就會看到一個品牌的設備。所以，但我只想說，我們已經討論了過去幾年我們推出的許多領先的自動化技術，這些技術有助於提高吞吐量、勞動力、佔地面積、效率等。泰勒無疑是詹姆斯在過去的一些電話中重點關注的產品之一。這是一個很好的例子的一部分，例如詹姆斯在這次電話會議上提到的 Ice，我們認為我們將擁有差異化的產品，這些產品將成為未來的成長動力。所以我只想評論一下，這是令人興奮的產品之一。

The next question is from Mig Dobre of Baird.

下一個問題來自貝爾德 (Baird) 的米格·多布雷 (Mig Dobre)。

Just a quick clarification here on residential. Your intro comments you mentioned that revenue is going to be up sequentially in Q4 versus Q3. And I'm curious as to what exactly is giving you confidence that, that's going to be the case. And then as you look into 2024, recognizing that some of the macro concerns are still with us. Do you expect revenue and residential to continue to build sequentially relative to Q4 or not?

這裡只是對住宅進行快速澄清。您在介紹中提到，第四季的營收將比第三季持續成長。我很好奇到底是什麼讓你有信心，情況會是這樣。然後，當你展望 2024 年時，你會發現我們仍然存在一些宏觀問題。您預計營收和住宅收入是否會相對於第四季持續成長？

This is Bryan. I'll start with the second part. Q4 for residential usually is a bigger quarter. There is some seasonality in some of the businesses where Q4 tends to be higher. We'll have to see a little bit how it plays out because while those will go away, it does start to pick up typically on the outdoor side of things across all our outdoor businesses. But obviously, there's the stocking issue. So we have not specifically mapped out a quarterly trajectory for next year. But I do put out there that Q4 tends to be stronger than Q1. But then thinking about Q4 versus Q3, really, I think your question was across the segments. Food Processing, [there say] always has a strong Q4. There's a lot of deliveries that get made to customers. They want to get things in their plants. And so say we have very high confidence there. We noted that Q4 is going to be similar to Q3 on the commercial side of things. There's just been enough, I'll call it, volatility in ordering while destocking is mitigating, there's also, I'll say, a little bit of a slowness in maybe the restocking, given everyone's focus on working capital. So that makes that one a little bit harder to precisely predict.

這是布萊恩。我將從第二部分開始。住宅的第四季通常是一個更大的季度。某些業務存在一定的季節性，第四季的業績往往較高。我們必須看看它會如何發揮作用，因為雖然這些都會消失，但它確實開始在我們所有戶外業務的戶外方面開始回升。但顯然，存在庫存問題。因此，我們還沒有具體制定明年的季度軌跡。但我確實指出，第四季往往比第一季更強。但考慮到第四季度與第三季度，實際上，我認為你的問題是跨越各個細分市場的。食品加工，[據說]總是有強勁的第四季度。有很多交付給客戶。他們想從植物中獲取東西。所以說我們對此有很高的信心。我們注意到，第四季在商業方面將與第三季類似。我稱之為，訂單的波動性已經足夠了，而去庫存正在減輕，而且，我會說，考慮到每個人都關注營運資金，補充庫存可能會有點緩慢。因此，這使得精確預測變得有點困難。

And I'd say in residential, we also feel fairly comfortable that Q4 is above Q3 as we look how order patterns have I'll say, stabilized, steadied some recently. And then again, there's some seasonal benefits in a couple of the businesses in there. So that's kind of the say, the quick perspective on how we view things coming together.

我想說，在住宅領域，我們也對第四季度高於第三季度感到相當滿意，因為我們看看訂單模式如何穩定下來，我會說，最近穩定了一些。話又說回來，那裡的一些企業有一些季節性的好處。這就是我們如何看待事物的快速視角。

Yes. (inaudible) maybe this is repetitive, but your question is on residential. I think as you go into next year, if the headwinds neutralize that starts to be equal growth for us, right? And -- right, because I think the destocking starts to go away, there's not inventory the typical load-ins that you would have at least on, let's say, our outdoor business that are not happening because people are also tepid on that, you're going to start to see better sell-through during the grill season. And then orders, albeit lower, they're kind of troughed, so we're starting to see them [flick] back up. So it doesn't need to be a great market to start seeing things improving and growing and if housing and remodel starts to pick up, then that ends up kind of being at or on top of that. So I think that's kind of how we think about it as you play out multiple quarters going through next year.

是的。 （聽不清楚）也許這是重複的，但你的問題是關於住宅的。我認為，進入明年，如果不利因素抵消，我們的成長就會開始平等，對嗎？而且 - 是的，因為我認為去庫存開始消失，沒有庫存，你至少會擁有，比如說，我們的戶外業務沒有發生，因為人們對此也不溫不火，你在燒烤季節，我們將開始看到更好的銷售情況。然後訂單雖然較低，但已經陷入低谷，所以我們開始看到它們[快速]回升。因此，它並不需要是一個偉大的市場才能開始看到事情的改善和成長，如果住房和改造開始回升，那麼最終就會達到或超過這個水平。所以我認為這就是我們在明年的多個季度中所考慮的問題。

Yes. And that was really the nature of my question. I was wondering if we could take a look at Q3 and sort of say, this is the trough point for both revenue and margin because if you're right about destocking being at an end and at least in theory, sequentially, you should start to see some incremental benefit from the channel normalizing and maybe even potentially some restock as you go into the selling season in the spring. That's -- that's kind of what I'm getting at.

是的。這確實是我問題的本質。我想知道我們是否可以看一下第三季度，可以說，這是收入和利潤的低谷點，因為如果你對去庫存結束的看法是正確的，至少在理論上，按順序，你應該開始看到通路正常化帶來的一些增量收益，甚至可能在進入春季銷售季節時補充庫存。這就是我的意思。

Yes. I think that's how we're thinking about it is how you are also thinking about it.

是的。我認為這就是我們的想法，你們也是。

Okay. And then my last question. Again, in your prepared remarks, you talked about backlog still being elevated in commercial foodservice, and that providing some level of support to '24. [You put a finer point on that]? Can you comment at all as to where backlog currently is where you expect it exiting '23 and how the backlog...

好的。然後是我的最後一個問題。同樣，在您準備好的發言中，您談到商業餐飲服務的積壓仍在增加，並且為“24”提供了一定程度的支持。 [你對此提出了更詳細的觀點]？您能否評論一下目前的積壓工作在哪裡，您預計它會在 23 年退出，以及積壓工作如何...

Elevated at this point. I mean, I would say that we're largely back to normal. We've got a lot of brands. So as you kind of pick through it, there are still a few that we've got a larger backlog given either level of orders along with supply chain being able to keep up with us. But I mean, I think that's more the exception of the rule, I would say, probably 90% of our companies are back to a normal lead time in backlog.

此時已升高。我的意思是，我想說我們基本上已經恢復正常了。我們有很多品牌。因此，當你仔細挑選時，考慮到任一級別的訂單以及供應鏈能夠跟上我們的步伐，我們仍然有一些積壓的訂單較多。但我的意思是，我認為這更多的是規則的例外，我想說的是，我們 90% 的公司可能已經恢復到正常的積壓交貨時間。

The next question is from Walter Liptak of Seaport.

下一個問題來自 Seaport 的 Walter Liptak。

Wanted to ask sort of a follow-on from the last one on Resi. And so if in the resi business, the margins are pretty low at this point. I wonder if you could talk about the cost out and operational excellence that you've done? And then if we do start to see growth in 2024, what does the volume leverage look like?

想問 Resi 的上一個問題的後續問題。因此，如果在樹脂業務中，目前的利潤率相當低。我想知道您是否可以談談您所做的成本支出和卓越營運？那麼，如果我們確實在 2024 年開始看到成長，那麼銷售槓桿會是什麼樣子？

Yes. This is Bryan. We have taken restructuring charges, as you can see on our P&L and probably over half of them are in the residential area and -- right? We do have, I'll call it, savings that are certainly a multiple of the charges we have taken. And again, those have been necessary based on the volumes we have in driving those margins. We do think things recover nicely here. Our incremental margins tend to be pretty healthy. And I think if you go back and look at where our revenue levels were, I'll call it, prior to these challenging times, if we get a couple of hundred million dollars of revenue back, you'll start to see our margins getting to the upper teens again. So there's no reason they won't expand back to where they were before. And actually, we've done a variety of things, which you can't see right now to improve the businesses, improve processes, improve manufacturing, rationalize and make more efficient the distribution processes.

是的。這是布萊恩。我們已經收取了重組費用，正如您在我們的損益表中看到的那樣，其中可能超過一半是在住宅區，對吧？我們確實有，我稱之為，節省的資金肯定是我們所收取費用的數倍。再說一遍，根據我們推動利潤率的數量，這些都是必要的。我們確實認為這裡的情況恢復得很好。我們的增量利潤往往相當健康。我認為，如果你回頭看看我們的收入水平，我會稱之為，在這些充滿挑戰的時期之前，如果我們收回幾億美元的收入，你就會開始看到我們的利潤率正在上升再次到十幾歲。因此，他們沒有理由不擴張回以前的水平。事實上，我們已經做了很多你現在看不到的事情來改善業務、改進流程、改進製造、合理化分銷流程並提高其效率。

Again, you're not seeing those benefits now because we don't have the benefits of volume, right? So those are all the reasons why we still think we will drive back to 20% and above and on the path to 25%. And then on top of that, there's a variety of international market expansion opportunities, I'll say, on both sides of the pond. We've talked extensively about bringing European products into the North American market, and there's -- that has started and there's more to come. We've talked about Grills expanding internationally, lots of international opportunities of expansion across all our all our brands as well in a variety of other initiatives. So certainly, we think we're at a low point, but there's a lot to be excited about in the portfolio.

再說一遍，您現在看不到這些好處是因為我們沒有數量的好處，對吧？因此，這些都是我們仍然認為我們將回到 20% 及以上並朝著 25% 邁進的原因。除此之外，我想說的是，池塘兩邊都有各種國際市場擴張機會。我們已經廣泛討論了將歐洲產品引入北美市場的問題，而且這已經開始，而且還會有更多的事情發生。我們已經討論了 Grills 的國際擴張、我們所有品牌以及各種其他舉措中的大量國際擴張機會。當然，我們認為我們正處於低點，但我們的投資組合中有很多值得興奮的地方。

And again, you look at the products themselves, the innovations, the expansions and all the things we've done on the cost side, right? We're really proud of what we've done with all our acquired businesses in terms of where their margins were when we bought them versus where they are today and where they are at better times. And so we know we will get back there. And again, with the portfolio and get even to higher levels than we were previously.

再一次，你看看產品本身、創新、擴展以及我們在成本方面所做的所有事情，對吧？我們對所有收購的業務所做的事情感到非常自豪，無論是我們收購它們時的利潤率、現在的利潤率還是更好時期的利潤率。所以我們知道我們會回到那裡。再次，透過投資組合，甚至達到比以前更高的水平。

Okay. Great. And if I can just do another quick one. On pricing and specifically for commercial food service, there's still inflation out there, even though it's come down. Do you plan on doing price increases at the beginning of 2024?

好的。偉大的。如果我能再快速做一次就好了。在定價方面，特別是商業食品服務的定價方面，儘管通膨有所下降，但仍存在通貨膨脹。你們打算在 2024 年初提價嗎？

Yes. Well, this is Steve. So I mean maybe just a quick recap of I think pricing broadly in commercial. Again, it's been one of the most important strategic initiatives in the company trying to get ahead of, obviously, all the inflationary costs over the last 12 to 24 months. So I'm very proud of the team. I think we did a lot of good work to get the pricing through and now to a place where I think we can be a lot more thoughtful about pricing going to next year. I do think there are still products in our portfolio, Walt, where they're still more affected by certain components and supply chain, and we do still need to take a little bit pricing on those products. But I do think by and large, going into next year, I do not see us taking a lot of pricing further from a kind of a broad standpoint, certainly subject to any other kind of supply chain or world disruption that could cause further inflation. But I think at this point, I don't see us taking a whole lot more pricing going into next year in commercial.

是的。嗯，這是史蒂夫。所以我的意思是，也許只是快速回顧一下我認為商業定價的廣泛情況。顯然，這是該公司最重要的策略舉措之一，旨在應對過去 12 至 24 個月的所有通膨成本。所以我為這個團隊感到非常自豪。我認為我們在定價方面做了很多出色的工作，現在我認為我們可以對明年的定價更加深思熟慮。我確實認為我們的產品組合中仍然有一些產品，它們仍然更容易受到某些組件和供應鏈的影響，而且我們仍然需要對這些產品進行一點定價。但我確實認為，總的來說，進入明年，我不認為我們會從廣泛的角度進一步大幅定價，當然會受到任何其他類型的供應鏈或可能導致進一步通膨的世界混亂的影響。但我認為目前來看，我認為明年的商業定價不會大幅提高。

That is all the questions we have today. I would like to turn the conference back over to management for closing remarks.

這就是我們今天的所有問題。我想將會議轉回管理階層進行閉幕致詞。

Well, thank you, everybody, for joining us on today's call, and we look forward to speaking to you next quarter. Thank you.

好的，謝謝大家參加今天的電話會議，我們期待下個季度與您交談。謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。