MSC Industrial Direct Co Inc (MSM) 2023 Q1 法說會逐字稿

Good day, and welcome to the MSC Industrial Supply Fiscal 2023 First Quarter Conference Call. (Operator Instructions) Please note, this event is being recorded.

美好的一天，歡迎參加 MSC 工業供應 2023 財年第一季度電話會議。 （操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to John Chironna, Vice President of Investor Relations and Treasurer. Please go ahead.

我現在想將會議轉交給投資者關係副總裁兼財務主管 John Chironna。請繼續。

Thank you, Alison, and good morning to everyone. Happy New Year as well. Erik Gershwind, our Chief Executive Officer; and Kristen Actis-Grande, our Chief Financial Officer, are both on the call with me today.

謝謝你，艾莉森，大家早上好。也祝你新年快樂。我們的首席執行官 Erik Gershwind；和我們的首席財務官 Kristen Actis-Grande 今天都在與我通話。

During today's call, we will refer to various financial and management data in the presentation slides that accompany our comments as well as our operational statistics, both of which can be found on our Investor Relations web page.

在今天的電話會議中，我們將在我們的評論以及我們的運營統計數據附帶的演示幻燈片中參考各種財務和管理數據，這兩者都可以在我們的投資者關係網頁上找到。

Let me reference our safe harbor statement, a summary of which is on Slide 2 of the accompanying presentation. Our comments on this call, as well as the supplemental information we are providing on the website, contain forward-looking statements within the meaning of the U.S. securities laws. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated by these statements. Information about these risks is noted in our earnings press release and our other SEC filings.

讓我參考我們的安全港聲明，其摘要在隨附演示文稿的幻燈片 2 上。我們對此次電話會議的評論以及我們在網站上提供的補充信息包含美國證券法含義內的前瞻性陳述。這些前瞻性陳述涉及風險和不確定性，可能導致實際結果與這些陳述預期的結果存在重大差異。有關這些風險的信息已在我們的收益新聞稿和我們提交給美國證券交易委員會的其他文件中註明。

In addition, during this call, we may refer to certain adjusted financial results, which are non-GAAP measures. Please refer to the GAAP versus non-GAAP reconciliations in our presentation or on our website, which contain the reconciliations of the adjusted financial measures to the most directly comparable GAAP measures.

此外，在此次電話會議中，我們可能會參考某些調整後的財務業績，這些業績是非 GAAP 衡量指標。請在我們的演示文稿或我們的網站上參考 GAAP 與非 GAAP 調節，其中包含調整後的財務措施與最直接可比的 GAAP 措施的調節。

I'll now turn the call over to Erik.

我現在將電話轉給 Erik。

Thank you, John. Good morning, everybody, and thanks for joining us today. I'll start by wishing everyone a Happy New Year, and I hope you had a restful and happy holiday season.

謝謝你，約翰。大家早上好，感謝今天加入我們。我首先祝大家新年快樂，我希望你們度過了一個寧靜快樂的假期。

On today's call, I'm going to reflect on our first quarter performance. I'll offer my perspective on the current demand environment and update you on our accomplishments against our Mission Critical initiatives. Kristen will then provide more specifics on the quarter and our reaffirmed fiscal 2023 framework. And I'll then wrap things up, and we'll open up the line for questions.

在今天的電話會議上，我將回顧我們第一季度的業績。我將提供我對當前需求環境的看法，並向您更新我們在關鍵任務計劃方面取得的成就。然後，克里斯汀將提供有關本季度和我們重申的 2023 財年框架的更多細節。然後我會總結一下，我們會打開問題熱線。

Before I get into Q1, I'm excited to announce that we produced our first-ever ESG report at the start of our fiscal year in November, actually. You can view this report in the Investor Relations section of mscdirect.com. Our ESG journey has been one of continual improvement, and we look forward to receiving your feedback as we enhance our reporting each year.

在進入第一季度之前，我很高興地宣布，實際上，我們在 11 月財政年度開始時製作了我們有史以來的第一份 ESG 報告。您可以在 mscdirect.com 的投資者關係部分查看此報告。我們的 ESG 之旅是一個持續改進的旅程，在我們每年改進報告的過程中，我們期待收到您的反饋。

On a related front, we continue to make progress on our DE&I journey by adding diversity to our senior management and our Board of Directors. Most recently, we welcomed Rahquel Purcell as our newest Board member, and she brings with her more than 30 years of supply chain, strategy and digital experience, and we're very happy to have her on board. This is the latest in what has been a series of moves to infuse new energy and new excitement and intensity into our company's leadership.

在相關方面，我們通過增加高級管理層和董事會的多樣性，繼續在我們的 DE&I 旅程中取得進展。最近，我們歡迎 Rahquel Purcell 成為我們最新的董事會成員，她帶來了 30 多年的供應鏈、戰略和數字經驗，我們很高興她能加入。這是為我們公司的領導層注入新活力、新興奮和熱情的一系列舉措中的最新舉措。

Turning to our performance. I'm pleased with another strong quarter that continues our string of success in the face of uncertain conditions. Our primary goals for fiscal 2023 are gaining market share, expanding adjusted operating margins and improving adjusted return on invested capital or ROIC. Our fiscal Q1 demonstrated success on all of those dimensions.

談到我們的表現。我很高興看到另一個強勁的季度，它在不確定的情況下繼續我們的成功。我們 2023 財年的主要目標是獲得市場份額、擴大調整後的營業利潤率並提高調整後的投資資本回報率或 ROIC。我們的第一財季在所有這些方面都取得了成功。

Looking beyond the quarter, our 5 growth levers, and for the productivity momentum that we're seeing, have us set up to continue achieving our mission-critical targets. Our manufacturing-centric end-market exposure also provides us with strong resiliency in the event of economic softening.

展望本季度之後，我們的 5 個增長槓桿以及我們所看到的生產力勢頭，使我們能夠繼續實現我們的關鍵任務目標。我們以製造業為中心的終端市場敞口也為我們在經濟疲軟的情況下提供了強大的彈性。

Manufacturing verticals like aerospace are not yet back to pre-COVID levels, and therefore, have plenty of room for continued growth. Additionally, we stand to benefit from reshoring in the future as we are just beginning to see the positive impacts from those activities.

航空航天等垂直製造行業尚未恢復到 COVID 之前的水平，因此仍有很大的持續增長空間。此外，我們將在未來從回流中受益，因為我們才剛剛開始看到這些活動的積極影響。

In addition to our focus on market share capture and productivity, we are pivoting our emphasis within category management. Since COVID began, our priorities were securing product availability for our customers and staying ahead of the rapid cost inflation that we all experienced, and I'm proud of our team's efforts on both fronts.

除了專注於市場份額獲取和生產力之外，我們還將重點放在品類管理上。自 COVID 開始以來，我們的首要任務是確保我們客戶的產品可用性，並保持領先於我們都經歷過的快速成本通脹，我為我們團隊在這兩個方面所做的努力感到自豪。

Our inventory position allowed us to service customers, keep plants running and drive revenue growth. And thanks to our strong value proposition, we were able to keep pricing ahead of purchase costs and improved gross margins during a challenging time.

我們的庫存狀況使我們能夠為客戶提供服務、保持工廠運轉並推動收入增長。由於我們強大的價值主張，我們能夠在充滿挑戰的時期保持定價領先於採購成本並提高毛利率。

As the world now returns to a more normalized state of moderating inflation and stabilizing supply chains, we are initiating a fresh look at our supplier and assortment strategy. Our priorities will migrate towards reducing purchase costs, streamlining operational efficiencies, improving the customer shopping experience and channeling more market share to those suppliers who partner with us.

隨著世界現在恢復到通貨膨脹放緩和供應鏈穩定的更正常狀態，我們開始重新審視我們的供應商和分類戰略。我們的優先事項將轉向降低採購成本、簡化運營效率、改善客戶購物體驗以及將更多市場份額分配給與我們合作的供應商。

We will accomplish these objectives through a formalized category line review process that will begin over the next couple of months, led by our new COO, Martina McIsaac. We will cycle through our product lines in waves, spanning the better part of the next year. We expect most of the benefits to accrue in fiscal '24 and beyond, with some benefit hitting the latter portion of fiscal '23.

我們將通過正式的品類線審查流程實現這些目標，該流程將在未來幾個月開始，由我們的新首席運營官 Martina McIsaac 領導。我們將一波又一波地循環我們的產品線，跨越明年的大部分時間。我們預計大部分收益將在 24 財年及以後產生，部分收益將在 23 財年後期產生。

I'll now turn to the specifics of the quarter. Results continued to be aided by strong pricing contribution, our recent bolt-on acquisitions and execution of our growth drivers. We achieved average daily revenue growth of 12.9%, well above the IP Index.

我現在將談談本季度的具體情況。強勁的定價貢獻、我們最近的補強收購以及我們增長動力的執行繼續為業績提供幫助。我們實現了 12.9% 的平均每日收入增長，遠高於 IP 指數。

We expanded operating margins by 140 basis points over prior year or 100 basis points on an adjusted basis, driven by the continuation of our mission-critical initiatives, which yielded additional savings of $6 million in the quarter. We remain on track to achieve our goal of at least $100 million of savings by the end of fiscal '23.

我們將營業利潤率比上一年提高了 140 個基點，或在調整後的基礎上提高了 100 個基點，這得益於我們繼續執行關鍵任務計劃，該計劃在本季度額外節省了 600 萬美元。我們仍然有望在 23 財年末實現至少節省 1 億美元的目標。

Our Mission Critical initiatives and efforts of our entire team on cost containment and productivity has also boosted our adjusted ROIC into the high teens and now stands at 18.3%. We've now already reached our original fiscal 2023 goal, and we aim to continue improving that number over time.

我們的關鍵任務舉措以及我們整個團隊在成本控制和生產力方面的努力也將我們調整後的 ROIC 提高到十幾歲，目前為 18.3%。我們現在已經實現了最初的 2023 財年目標，我們的目標是隨著時間的推移繼續提高這一數字。

Our growth formula remains anchored in the 5 priorities that we've discussed as part of Mission Critical: solidify metalworking, expand solutions, leverage the portfolio strength, grow e-commerce and diversify customers and end markets with an emphasis on public sector. I'll now update you on each one of those.

我們的增長公式仍然基於我們作為關鍵任務的一部分討論的 5 個優先事項：鞏固金屬加工、擴展解決方案、利用產品組合實力、發展電子商務以及使客戶和終端市場多樣化，重點放在公共部門。我現在將向您介紹其中的每一個。

Our expertise in metalworking remains the cornerstone of our value proposition, driven by the depth and breadth of our product portfolio, our large network of technical metalworking experts and our focus on innovation as a tool to elevate productivity and lower costs for customers. In many cases, we also help our customers to reduce waste and energy consumption. Here is a recent example from the aerospace end market.

我們在金屬加工方面的專業知識仍然是我們價值主張的基石，這受到我們產品組合的深度和廣度、我們龐大的金屬加工技術專家網絡以及我們專注於創新作為提高生產力和降低客戶成本的工具的推動。在許多情況下，我們還幫助客戶減少浪費和能源消耗。這是航空航天終端市場的最新示例。

One of our customers, who is a Fortune 500 company, was using a 4-step drilling process that took them 2.5 to 3 minutes to machine a certain part that goes into an airplane. After an in-depth review by our metalworking experts, we were able to take that 4-step process and bring it to 1 step and reduced cycle time from the 2.5 to 3 minutes to just 10 seconds. We also improved quality along the way. And by the customer's own calculation, they're now expecting to save over $4 million annually.

我們的一位客戶是一家財富 500 強公司，他們使用 4 步鑽孔工藝，花了 2.5 到 3 分鐘來加工飛機上的某個零件。經過我們的金屬加工專家的深入審查後，我們能夠採用 4 步工藝並將其簡化為 1 步，並將循環時間從 2.5 到 3 分鐘縮短到僅 10 秒。在此過程中，我們還提高了質量。根據客戶自己的計算，他們現在預計每年可節省超過 400 萬美元。

Our solutions growth driver is anchored by our vending and in-plant programs, both of which have been fueling market share capture over the past several quarters. Vending signings remain strong with Q1 signings comparable to Q4. Vending machine revenues grew in the mid-teens and now represent over 15% of total company sales.

我們的解決方案增長動力來自於我們的自動售貨和廠內計劃，這兩個計劃在過去幾個季度中一直在推動市場份額的獲取。自動售貨簽約保持強勁，第一季度簽約與第四季度相當。自動售貨機收入在十幾歲中期增長，現在占公司總銷售額的 15% 以上。

In-plant signings also remained strong, with Q1 again running at a similar pace to Q4. In-plant customer revenues were up over 20% year-over-year and now represent 12% of total sales, up 100 basis points from the prior quarter. We will continue to push on this growth driver and would expect in-plant to be at 15% of total sales by the second quarter of fiscal '24.

廠內簽約也保持強勁，第一季度再次以與第四季度相似的速度運行。廠內客戶收入同比增長超過 20%，目前佔總銷售額的 12%，比上一季度增長 100 個基點。我們將繼續推動這一增長動力，並預計到 24 財年第二季度，工廠內銷售額將佔總銷售額的 15%。

Sales to customers with our solutions offering now represent 56% of the company's total sales, up over 200 basis points from prior year. Importantly, our solutions capabilities are also bringing us into diversified end markets, with recent wins coming in industries spanning from medical manufacturing, packaging and even the hospitality sector.

使用我們的解決方案產品對客戶的銷售額現在占公司總銷售額的 56%，比上一年增加了 200 多個基點。重要的是，我們的解決方案能力也將我們帶入了多元化的終端市場，最近在醫療製造、包裝甚至酒店業等行業取得了成功。

The third priority is selling the portfolio, which is about increasing share of wallet through ancillary products, especially our CCSG business. Here, we provide an outsourced vendor-managed inventory service for the high-margin C-Part consumables that keep plants running. Momentum in this business continues building, with Q1 ADS growth in the mid-teens.

第三個優先事項是出售投資組合，即通過輔助產品（尤其是我們的 CCSG 業務）增加錢包份額。在這裡，我們為保持工廠運行的高利潤 C 零件消耗品提供外包供應商管理的庫存服務。該業務的勢頭繼續增強，第一季度 ADS 增長了十幾歲。

Our fourth priority is digital, which includes all aspects of MSC's digital engagement with customers, suppliers and associates. John Hill and his team have completed a comprehensive review of our entire digital offering and have built a road map for our evolution in the space.

我們的第四個優先事項是數字化，其中包括 MSC 與客戶、供應商和合作夥伴的數字化互動的所有方面。 John Hill 和他的團隊完成了對我們整個數字產品的全面審查，並為我們在該領域的發展制定了路線圖。

For example, in e-commerce, recent work is focused on improving the customer experience on our website by enhancing product discovery and enriching product data. This investment is producing early returns as e-commerce sales grew mid-teens in the first quarter. On an ADS basis, we reached 61.9% as a percent of total company sales, up roughly 150 basis points compared to prior year.

例如，在電子商務方面，最近的工作重點是通過增強產品發現和豐富產品數據來改善我們網站上的客戶體驗。隨著電子商務銷售額在第一季度增長了十幾歲，這項投資正在產生早期回報。在 ADS 的基礎上，我們占公司總銷售額的百分比達到 61.9%，比上一年增加了大約 150 個基點。

Our fifth growth driver is customer diversification through our public sector business. Over the past few quarters, I've described significant contract wins such as the 4PL contract serving the U.S. Marine's base. But we supplemented that win with others at the state and federal level. And these have helped to produce continued strong growth with Q1 ADS coming in over 20%, and we expect that momentum to continue throughout fiscal '23.

我們的第五個增長動力是通過我們的公共部門業務實現客戶多元化。在過去的幾個季度中，我描述了重要的合同勝利，例如為美國海軍陸戰隊基地提供服務的 4PL 合同。但我們在州和聯邦層面與其他人一起贏得了勝利。這些有助於產生持續強勁的增長，第一季度 ADS 超過 20%，我們預計這種勢頭將在整個 23 財年持續。

Each of our 5 growth levers are not only powering growth, but they're positioning MSC as a productivity partner to our customers, expanding our historic role as spot-buy supplier.

我們的 5 個增長槓桿中的每一個都不僅推動增長，而且將 MSC 定位為我們客戶的生產力合作夥伴，擴大我們作為現貨供應商的歷史角色。

In Q4 of fiscal '22, we expanded our portfolio through 2 acquisitions in areas that we consider important to our business. In June, we acquired Engman-Taylor, a premier metalworking distributor in the Midwest that expands our network of technical experts.

在 22 財年第四季度，我們通過在我們認為對我們業務重要的領域進行了 2 次收購來擴大了我們的投資組合。 6 月，我們收購了中西部首屈一指的金屬加工經銷商 Engman-Taylor，擴大了我們的技術專家網絡。

We also bolstered our OEM fastener distribution business through the acquisition of Tower Fasteners in August, which broadens our end-market exposure and increases our geographic footprint in the high-touch VMI inventory category.

我們還通過 8 月份收購 Tower Fasteners 加強了我們的 OEM 緊固件分銷業務，這擴大了我們的終端市場曝光率並增加了我們在高接觸 VMI 庫存類別中的地理足跡。

Both businesses are running ahead of their original case in their early days. We expect both to produce ROIC above our weighted average cost of capital by the end of their first full year of operations. Kristen will discuss our capital allocation priorities in more detail, but we remain committed to seeking out bolt-on acquisitions that fit our strategic, financial and cultural filters.

這兩家企業在早期都領先於他們的原始案例。我們預計兩家公司在第一年運營結束時的 ROIC 都將高於我們的加權平均資本成本。克里斯汀將更詳細地討論我們的資本分配優先事項，但我們仍然致力於尋找符合我們戰略、財務和文化過濾器的補強收購。

Turning to the external environment. The picture remained similar to last quarter, with sentiment readings declining and IP readings moderating. The majority of our customers are seeing stable order levels, demand and general activity. We are hearing, though, continued talk of softening among a portion of our customers.

轉向外部環境。情況與上一季度相似，情緒讀數下降，IP 讀數放緩。我們的大多數客戶都看到了穩定的訂單水平、需求和一般活動。不過，我們聽到部分客戶繼續談論軟化。

More recently, we experienced a higher prevalence of extended holiday shutdowns, along with weather disruptions during the second half of December. As Kristen will describe, this resulted in a strong start to the month but a slow finish as activity saw a sharper decline than in the last 2 weeks of prior year.

最近，我們在 12 月下半月經歷了更普遍的延長假期停工以及天氣乾擾。正如 Kristen 將描述的那樣，這導致本月開局強勁，但結束緩慢，因為活動比去年的最後兩週下降得更厲害。

Zooming out though, the need for our customers to find productivity to offset their cost headwinds is as strong as it's ever been. And this plays nicely into our value proposition. So we remain focused on delivering that productivity for our customers.

不過，縮小範圍來看，我們的客戶對提高生產力以抵消成本不利因素的需求一如既往地強烈。這很好地融入了我們的價值主張。因此，我們仍然專注於為我們的客戶提供生產力。

I'm going to now turn things over to Kristen.

我現在要把事情交給克里斯汀。

Thank you, Erik, and good morning, everyone. On Slide 5 of our presentation, you can see key metrics for the fiscal first quarter on a reported basis. Slide 6 reflects the adjusted results, which will be my primary focus this morning.

謝謝你，埃里克，大家早上好。在我們演示文稿的幻燈片 5 中，您可以在報告的基礎上查看第一財季的關鍵指標。幻燈片 6 反映了調整後的結果，這將是我今天早上的主要關注點。

Our first quarter sales were up 12.9% versus the same quarter last year and came in at $957.7 million. Our first quarter acquisitions represented roughly 3 percentage points of the growth, and FX was a 30 basis point headwind year-over-year.

我們第一季度的銷售額與去年同期相比增長了 12.9%，達到 9.577 億美元。我們第一季度的收購約佔增長的 3 個百分點，外匯同比增長 30 個基點。

Looking at growth rate for our average daily sales by customer type, public sector sales increased over 22%, fueled by fulfillment under our 4PL contract for the U.S. Marine bases and other public sector spending. National Account growth was low teens and core customers grew high single-digits.

從我們按客戶類型劃分的平均每日銷售額的增長率來看，公共部門銷售額增長超過 22%，這得益於我們根據美國海軍基地和其他公共部門支出的 4PL 合同的履行。國民賬戶增長率較低，核心客戶增長率較高。

Our gross margin for the fiscal first quarter was 41.5%, down 10 basis points on a year-over-year basis and up 30 basis points organically, driven by increased price more than offsetting product cost inflation.

我們第一財季的毛利率為 41.5%，同比下降 10 個基點，有機增長 30 個基點，這主要是由於價格上漲抵消了產品成本通脹。

Sequentially, gross margin ticked down as expected due to the ongoing realization of previously incurred product cost increases, some mix impact from our growth drivers, along with a small impact from a full quarter with Tower Fasteners in our numbers.

隨後，由於之前發生的產品成本增加的持續實現，我們的增長驅動因素的一些混合影響，以及我們數字中 Tower Fasteners 的整個季度的輕微影響，毛利率如預期般下降。

Looking forward, we continue to see new cost increases from our suppliers, although not at the fast and furious pace of last year. As a result, we anticipate taking a small pricing adjustment within the next month. Our ability to deliver continual cost savings and tangible productivity gains to our customers continues driving solid realization rates.

展望未來，我們將繼續看到供應商的新成本增加，儘管不像去年那樣快速而激烈。因此，我們預計會在下個月內對價格進行小幅調整。我們為客戶提供持續成本節約和切實提高生產力的能力繼續推動穩定的實現率。

Reported operating expenses in the first quarter were $280 million versus last year's reported operating expenses of $257 million. Adjusted operating expenses were also $280 million or 29.2% of net sales versus last year's adjusted operating expenses of $257 million or 30.2% of net sales. This yielded a 100 basis point reduction in adjusted OpEx to sales year-over-year.

第一季度報告的運營費用為 2.8 億美元，而去年報告的運營費用為 2.57 億美元。調整後的運營費用也為 2.8 億美元，占淨銷售額的 29.2%，而去年調整後的運營費用為 2.57 億美元，占淨銷售額的 30.2%。這使調整後的運營支出與銷售額同比減少了 100 個基點。

Our reported operating margin was 12.1% compared to 10.7% in the same period last year. Adjusted for restructuring and acquisition-related costs, adjusted operating margin was 12.3% as compared to adjusted operating margin of 11.3% last year, a 100 basis point improvement year-over-year. That resulted in an adjusted incremental margin for our first quarter of approximately 20%.

我們報告的營業利潤率為 12.1%，而去年同期為 10.7%。調整重組和收購相關成本後，調整後的營業利潤率為 12.3%，而去年調整後的營業利潤率為 11.3%，同比提高 100 個基點。這導致我們第一季度調整後的增量利潤率約為 20%。

Reported earnings per share were $1.45 for the quarter as compared to $1.18 in the same prior year period. Adjusted for restructuring and current year acquisition-related costs, adjusted earnings per share were $1.48 as compared to adjusted earnings per share of $1.25 in the prior year period, an increase of 18%. This continues to reflect strong execution at all levels, sales performance to gross profit and operating expenses.

本季度報告的每股收益為 1.45 美元，而去年同期為 1.18 美元。經重組和當年收購相關成本調整後，調整後每股收益為 1.48 美元，而去年同期調整後每股收益為 1.25 美元，增長 18%。這繼續反映出各個層面的強大執行力、銷售業績與毛利和運營費用的比值。

Turning to the balance sheet. At the end of the fiscal first quarter, we were carrying $726 million of inventory, up $10 million from Q4's balance. The inventory build is consistent with our double-digit revenue growth, advantageous year-end buys and continuing inflation. We are targeting an annual cash conversion rate of at least 100% for fiscal 2023, and we are pleased with our performance this quarter of 94% despite double-digit revenue growth and the related receivables growth.

轉向資產負債表。在第一財季末，我們持有 7.26 億美元的庫存，比第四季度的餘額增加 1000 萬美元。庫存增加與我們兩位數的收入增長、有利的年終購買和持續的通貨膨脹相一致。我們的目標是在 2023 財年實現至少 100% 的年度現金轉換率，儘管收入和相關應收賬款實現兩位數增長，但我們對本季度 94% 的業績感到滿意。

Our capital expenditures were $26 million in the first quarter and included elevated vending installations, new warehouse automation and continued investments in digital. Our capital spending is front-loaded this year, and we currently expect annual CapEx spend in the range of $70 million to $80 million in fiscal 2023.

我們第一季度的資本支出為 2600 萬美元，其中包括高架自動售貨機安裝、新倉庫自動化和對數字技術的持續投資。我們今年的資本支出是前期投入，我們目前預計 2023 財年的年度資本支出將在 7000 萬至 8000 萬美元之間。

You can see on Slide 7, our free cash flow is up year-over-year at $51 million for the current quarter as compared to $43 million in the prior year quarter. Note that we also spent about $19 million buying back shares during the quarter, just over 200,000 shares at an average purchase price of $79.60. We currently have 4.5 million shares remaining on our current repurchase authorization.

您可以在幻燈片 7 上看到，本季度我們的自由現金流同比增長 5100 萬美元，而去年同期為 4300 萬美元。請注意，我們在本季度還花費了大約 1900 萬美元回購股票，以 79.60 美元的平均購買價格回購了 200,000 多股股票。我們目前的回購授權還剩 450 萬股。

Our total debt at the end of the fiscal first quarter was $780 million, reflecting a $15 million decrease from the fourth quarter of fiscal 2022. As for the composition of our debt, roughly 55% was floating rate debt and the other 45% was fixed rate debt.

我們在第一財季末的總債務為 7.8 億美元，比 2022 財年第四季度減少了 1500 萬美元。至於我們的債務構成，大約 55% 是浮動利率債務，另外 45% 是固定利率債務利率債務。

Cash and cash equivalents were $26 million, resulting in net debt of $754 million at the end of the quarter, up slightly from $751 million at the end of the fourth quarter. Our net leverage at the end of the first quarter was 1.3x, in line with our target range of 1 to 2x.

現金和現金等價物為 2600 萬美元，導致本季度末的淨債務為 7.54 億美元，略高於第四季度末的 7.51 億美元。我們在第一季度末的淨槓桿率為 1.3 倍，符合我們 1 至 2 倍的目標範圍。

I would also like to highlight that subsequent to closing our fiscal Q1, we closed on a $300 million receivables facility, which is a committed senior secured revolving trade receivables facility that we will use to reduce our debt and overall funding rate. It will bring our leverage ratio to just under 1x.

我還想強調的是，在結束我們的第一財季之後，我們關閉了一項 3 億美元的應收賬款安排，這是一項承諾的高級擔保循環貿易應收款安排，我們將使用它來減少我們的債務和整體融資率。這將使我們的槓桿率降至略低於 1 倍。

Before updating you on our Mission Critical productivity goals, I would like to spend a few minutes to refresh our capital allocation strategy, which you can see on Slide 8. Our top 2 priorities remain investing into the business and returning capital to shareholders through our ordinary dividend.

在向您更新我們的關鍵任務生產力目標之前，我想花幾分鐘時間來更新一下我們的資本配置策略，您可以在幻燈片 8 中看到。我們的首要任務仍然是投資於業務並通過我們的普通股向股東返還資本股利。

From there, our next 2 priorities are tuck-in acquisitions and share buybacks at the right valuation levels. We are deprioritizing use of special dividends as we see higher return prospects and other uses of cash.

從那裡開始，我們接下來的兩個優先事項是在正確的估值水平下進行收購和股票回購。我們正在取消特別股息的使用，因為我們看到更高的回報前景和現金的其他用途。

Let me now update you on our Mission Critical productivity goals, and I'm now on Slide 9. In our fiscal first quarter, we achieved additional gross savings of $6 million and invested another $1 million. We are targeting our fiscal 2023 goal to be at least $15 million in gross savings.

現在讓我向您介紹我們的關鍵任務生產力目標，我現在在幻燈片 9 上。在我們的第一財季，我們實現了 600 萬美元的額外總節省，並另外投資了 100 萬美元。我們的 2023 財年目標是至少節省 1500 萬美元。

Warehouse automation remains an area of focus as evidenced by our recent capital investment. We're extending new automation technology throughout our fulfillment centers to strengthen our operations and mitigate the effects of labor inflation.

正如我們最近的資本投資所證明的那樣，倉庫自動化仍然是一個重點領域。我們正在將新的自動化技術擴展到整個運營中心，以加強我們的運營並減輕勞動力通脹的影響。

For the total program to date, we have achieved gross savings of $91 million, and we remain (inaudible) on target to hit at least $100 million of gross cost savings by the end of this fiscal year.

對於迄今為止的總計劃，我們已經實現了 9100 萬美元的總節省，並且我們仍然（聽不清）目標是到本財政年度結束時至少實現 1 億美元的總成本節省。

(inaudible) Now let's turn to the fiscal year 2023 guidance, which is shown on Slide 10. We are reaffirming our 2023 guidance as introduced during our fiscal fourth quarter 2022 earnings call last October. We are estimating average daily sales growth of 5% to 9% and an adjusted operating margin between 12.7% and 13.3%.

（聽不清）現在讓我們轉到幻燈片 10 中顯示的 2023 財年指導方針。我們重申我們在去年 10 月的 2022 財年第四季度財報電話會議上提出的 2023 年指導方針。我們估計日均銷售額增長 5% 至 9%，調整後的營業利潤率在 12.7% 至 13.3% 之間。

A few reminders as it pertains to our estimates for the year. Specific to the ADS growth range, fiscal 2023 has 252 days, 6 fewer than fiscal 2022. The full fiscal calendar can be found on our website. Our Engman-Taylor and Tower Fasteners acquisitions are included in the guidance and add roughly 200 basis points to our ADS growth for the year.

一些提醒，因為它與我們今年的估計有關。具體到 ADS 增長區間，2023 財年有 252 天，比 2022 財年少 6 天。完整的財年日曆可以在我們的網站上找到。我們對 Engman-Taylor 和 Tower Fasteners 的收購包含在指導中，並為我們今年的 ADS 增長增加了大約 200 個基點。

When we introduced guidance last quarter, forecast indicated a softening economic environment, and we factored that into our annual guidance range. As of now, we would characterize the environment and our growth trajectory as tempering a bit, but still solid.

當我們上個季度推出指引時，預測顯示經濟環境疲軟，我們將其納入年度指引範圍。截至目前，我們認為環境和我們的增長軌蹟有所緩和，但仍然穩健。

At the gross margin level, we remain on plan and expect fiscal 2023 to be down 40 to 70 basis points versus prior year, which is inclusive of the 30 to 40 basis point acquisition headwind. As we think about the cadence of our gross margins for the remainder of the year, we expect the back half of the year to be flat to slightly higher than the first half. This is due to several factors.

在毛利率水平上，我們仍按計劃進行，預計 2023 財年將比上年下降 40 至 70 個基點，其中包括 30 至 40 個基點的收購逆風。當我們考慮今年剩餘時間的毛利率節奏時，我們預計今年下半年將持平至略高於上半年。這是由於幾個因素。

First, the realization of product cost increases in our P&L is expected to peak over the next quarter. Second, freight costs should subside beginning in Q3. Third, we have several gross margin initiatives in play whose contribution builds in the back half of the year. Erik mentioned one, which is a new category line review process, but there are others with a near-term time horizon.

首先，我們的 P&L 中產品成本增加的實現預計將在下一季度達到頂峰。其次，運費應該會從第三季度開始下降。第三，我們有幾項毛利率計劃正在發揮作用，其貢獻將在今年下半年增加。 Erik 提到了一個，這是一個新的類別線審查流程，但還有其他具有近期時間範圍的流程。

On the operating expense line, we expect a slight increase in operating expense as a percentage of sales in Q2, consistent with our typical seasonal pattern, with sequential declines thereafter. Our Mission Critical productivity efforts will allow us to continue investing in our growth strategy despite ongoing inflation headwinds.

在營業費用方面，我們預計第二季度營業費用佔銷售額的百分比將略有增加，這與我們典型的季節性模式一致，此後會連續下降。我們的關鍵任務生產力工作將使我們能夠在持續的通貨膨脹逆風的情況下繼續投資於我們的增長戰略。

Factoring in those assumptions, we expect adjusted operating margin to be in the range of 12.7% to 13.3%. Excluding the 20 basis points benefit of the extra week from fiscal 2022, this would reflect operating margin expansion at nearly all points within our range.

考慮到這些假設，我們預計調整後的營業利潤率將在 12.7% 至 13.3% 的範圍內。排除 2022 財年額外一周的 20 個基點收益，這將反映我們範圍內幾乎所有點的營業利潤率擴張。

As a reminder, our fiscal 2022 fourth quarter acquisitions dilute operating margins by approximately 20 basis points in fiscal '23, their first full year with us. While dilutive to operating margins in the first year, both acquisitions are accretive to EPS and on track to achieve an ROIC above weighted average cost of capital in their first full year of operations.

提醒一下，我們 2022 財年第四季度的收購在 23 財年（他們與我們的第一個完整年度）中將營業利潤率稀釋了大約 20 個基點。雖然第一年的營業利潤率有所稀釋，但這兩項收購都增加了每股收益，並有望在其運營的第一年實現高於加權平均資本成本的 ROIC。

Holding fiscal '23 debt constant with current levels, we would expect roughly $8 million to $10 million of interest and other expense per quarter and tax rates slightly under 25%. Given our expectations for an operating cash flow conversion of roughly 100%, we will have flexibility to deploy free cash flow into debt reduction, buybacks or accretive acquisitions.

將 23 財年的債務保持在當前水平不變，我們預計每季度的利息和其他費用約為 800 萬至 1000 萬美元，稅率略低於 25%。鑑於我們對運營現金流轉換率約為 100% 的預期，我們將可以靈活地將自由現金流用於債務減免、回購或增值收購。

During our last call, we introduced our downturn playbook that we have at the ready should we experience a significant demand slowdown. We have clearly defined triggers for changes in our actual or forecasted revenue and operating profit that initiate a series of actions we'll take across the business. This includes everything from pullbacks on discretionary spending, changes in staffing levels and reprioritization of investments.

在上次電話會議中，我們介紹了我們已經準備好應對需求大幅放緩的低迷策略。我們已經明確定義了實際或預測收入和營業利潤變化的觸發因素，這些觸發因素會啟動我們將在整個業務中採取的一系列行動。這包括從可自由支配支出的縮減、人員配置水平的變化和投資的重新排序等方方面面。

In addition, our balance sheet remains strong. And when the economy slows, we generate high levels of cash flow as working capital becomes a source of funding. This will enable us to pay down debt and/or strategically invest through the downturn. We are not in that mode as of now, and we remain well positioned to navigate a change in the environment, if required, by enacting these levers to control costs.

此外，我們的資產負債表依然強勁。當經濟放緩時，我們會產生高水平的現金流，因為營運資金成為資金來源。這將使我們能夠在經濟低迷時期償還債務和/或進行戰略投資。到目前為止，我們還沒有處於那種模式，並且如果需要的話，我們仍然可以通過制定這些槓桿來控製成本來應對環境的變化。

I will now turn it back over to Erik.

我現在將把它轉回給埃里克。

Thanks, Kristen. We are pleased with our first quarter performance, which is on the heels of a strong fiscal '22 in what remains a complex operating environment. We remain on track to achieve each of our Mission Critical goals for the end of fiscal '23, and we are seeing momentum build quarter-over-quarter inside of the company.

謝謝，克里斯汀。我們對第一季度的業績感到滿意，這是在仍然複雜的運營環境中強勁的 22 財年之後。我們仍然有望在 23 財年末實現我們的每一個關鍵任務目標，並且我們看到公司內部的勢頭逐季增長。

This is an exciting time for MSC as we position the company as a partner of choice among our customers. We see a bright future ahead, and we'll continue to reinvest into the business. Regardless of the macro environment, we remain squarely focused on what we can control: capturing market share, growing above IP and translating that growth into profit expansion.

這對 MSC 來說是一個激動人心的時刻，因為我們將公司定位為客戶的首選合作夥伴。我們看到了光明的未來，我們將繼續對該業務進行再投資。無論宏觀環境如何，我們仍然專注於我們可以控制的事情：奪取市場份額，超越 IP 增長並將這種增長轉化為利潤擴張。

I'd like to thank our entire team for their hard work and dedication, and we'll now open up the line for questions.

我要感謝我們整個團隊的辛勤工作和奉獻精神，現在我們將開放提問熱線。

(Operator Instructions) And our first question today will come from Tommy Moll with Stephens.

（操作員說明）我們今天的第一個問題將來自 Tommy Moll 和 Stephens。

I wanted to start by circling back on some of the macro commentary that you both offered. Erik, I took note of your comment about a pronounced slowdown in the second half of December. And Kristen, I think the key words from your prepared remarks were the tempering a bit and just in terms of the macro and growth outlook.

我想首先回顧一下你們倆都提供的一些宏觀評論。埃里克，我注意到你關於 12 月下半月明顯放緩的評論。克里斯汀，我認為你準備好的發言中的關鍵詞是在宏觀和增長前景方面有所緩和。

So I was hoping you could give us any more insight you have there, in particular, if there's any difference across some of the end markets, that would be helpful.

所以我希望你能給我們更多的見解，特別是，如果某些終端市場之間存在任何差異，那將很有幫助。

Yes, Tommy, sure. Look, I think the headline in terms of the macro is pretty much more of the same. On the last quarter, we talked about some pockets of softening in line with some of the readings coming down. And I think that's what we're still experiencing. So we would characterize the environment as very solid.

是的，湯米，當然。看，我認為宏觀方面的標題幾乎是一樣的。在上個季度，我們談到了一些與下降的讀數一致的軟化。我認為這就是我們仍在經歷的事情。因此，我們會將環境描述為非常堅固。

Look, I mean, we're still talking about nice growth levels. Most of our customers are still talking about solid demand and solid order patterns. There are pockets though. And it tends to be the closer you get to consumer-facing industries, the more extensive you're going to hear the pockets of softening.

看，我的意思是，我們仍在談論良好的增長水平。我們的大多數客戶仍在談論穩固的需求和穩固的訂單模式。雖然有口袋。而且往往越接近面向消費者的行業，您聽到的軟化的範圍就越廣。

So in general, I think we're not seeing anything that suggests like anything falling off a cliff. The words, I think, Kristen referred to are tempering, which would be an appropriate characterization. With respect to December, in particular, from what we could tell, the back half of December is an isolated phenomenon, and we saw a really strong start.

所以總的來說，我認為我們沒有看到任何跡象表明有任何東西從懸崖上掉下來。我認為，克里斯汀提到的詞是調和，這是一個恰當的描述。特別是關於 12 月，據我們所知，12 月下半月是一個孤立的現象，我們看到了一個非常強勁的開端。

So to put some context on that, the first couple of weeks, the growth rates would have been better than Q1. The back half definitely slowed. And we did hear from our sales team that customer -- holiday-related shutdowns were more widespread than the last couple of years and then throw in weather that disrupted things that week before Christmas. So it appears to be what we saw back half of December isolated and nothing systemic.

因此，為了說明這一點，前幾週的增長率會好於第一季度。後半段肯定慢了下來。我們確實從我們的銷售團隊那裡聽說客戶 - 與假期相關的停工比過去幾年更為普遍，然後在聖誕節前一周的天氣中擾亂了事情。因此，這似乎是我們在 12 月中旬看到的孤立的情況，沒有任何系統性。

Erik, that's helpful. As a follow-up, I wanted to touch on the pricing environment. It sounds like you've continued to see some supplier price increases. There's -- I think you said you've got another one of your own planned for next month. So any context you could give there?

埃里克，這很有幫助。作為後續行動，我想談談定價環境。聽起來您繼續看到一些供應商價格上漲。有——我想你說過你已經為下個月準備了另一個你自己的計劃。那麼您可以提供任何背景信息嗎？

And then just thinking through how that ties to your 2023 outlook for ADS. On my math, you saw about a 700 basis point contribution this quarter. Presumably the range of expected contributions for the year would be significantly lower than that just given the comps. But if there's any way you could frame what's reasonable for the full year, that would be helpful as well.

然後想想這與你 2023 年的 ADS 前景有何關係。根據我的計算，本季度您看到了大約 700 個基點的貢獻。據推測，今年的預期捐款範圍將大大低於剛剛給出的補償。但如果有什麼方法可以為全年制定合理的框架，那也會有所幫助。

Yes, Tommy, sure. I'll start out. I'll touch on the environment. I can give you a little context on our numbers, and Kristen can fill in anything I missed.

是的，湯米，當然。我會開始的。我會談談環境。我可以為您提供一些關於我們數字的背景信息，克里斯汀可以填寫我遺漏的任何內容。

So in terms of the environment, it's an interesting time because on the one hand, like the whole world is suffering from inflation fatigue. And our customers, our suppliers were all not immune from that. At the same time, the reality of the situation is that there's still inflation.

因此，就環境而言，這是一個有趣的時期，因為一方面，整個世界都在遭受通脹疲勞。我們的客戶，我們的供應商都無法倖免。與此同時，現實情況是仍然存在通貨膨脹。

And while it is definitely moderating, there's still inflation and there's still cost increases as evidenced by the fact that, yes, we're still seeing suppliers coming to us with increases. And so that is what drove what I described is going to be a pricing adjustment coming up in the next month.

雖然它肯定在緩和，但仍然存在通貨膨脹並且仍然存在成本增加，事實證明，是的，我們仍然看到供應商來找我們增加。因此，這就是推動我所描述的將在下個月進行的定價調整的原因。

So it's a reality that we all have to deal with, even though there's a bit of fatigue. And I think the message for us is we're really focused for our customers on making sure we're generating productivity for them. That's going to offset it. I think that's how I characterize the macro.

所以這是我們所有人都必鬚麵對的現實，即使有一點疲勞。我認為給我們的信息是我們真正關注我們的客戶，確保我們為他們創造生產力。這將抵消它。我認為這就是我描述宏的方式。

Yes, in terms of our numbers, and I'm pretty sure this is all sort of baked into what we gave as the guidance range at the start of the year, we did anticipate that we would lap the very high pricing of prior year. And that's going to happen during our fiscal second quarter in the next month or so here.

是的，就我們的數字而言，我很確定這已經融入了我們在年初給出的指導範圍內，我們確實預計我們會超越前一年的非常高的定價。這將在下個月左右的第二財季發生。

So yes, as a percentage of sales, pricing contribution will absent some radical change in the environment. Pricing contribution will come down because of the math of the comps.

所以是的，作為銷售額的百分比，定價貢獻將不會在環境中發生一些根本性的變化。由於補償的數學，定價貢獻將下降。

Our next question today will come from Steve Volkmann of Jefferies.

我們今天的下一個問題將來自 Jefferies 的 Steve Volkmann。

Erik, I noted in your prepared comments that you actually said you were starting to see some of the benefits of reshoring poking their head up. Can you just expand on that a little bit?

埃里克，我在你準備好的評論中註意到你實際上說過你開始看到回流的一些好處讓他們抬起頭來。你能稍微擴展一下嗎？

Yes. Sure, Stephen. I would say very, very early. So we're not so much yet seeing it in our revenue -- you're not seeing it in our revenues. What we are starting to see from our sales team is lists of new construction and projects that are going up, buildings being put up.

是的。當然，斯蒂芬。我會說非常非常早。所以我們還沒有在我們的收入中看到它——你沒有在我們的收入中看到它。我們開始從我們的銷售團隊看到的是新建築和正在建設的項目清單，正在建造的建築物。

And so as you can imagine, our business development team, we're all over that. It's fairly widespread in terms of geography and in terms of industry type. I would say heavy emphasis on manufacturing, obviously. But the tangible evidence now is it's going from talk into new construction.

所以你可以想像，我們的業務開發團隊，我們已經完成了。它在地理和行業類型方面相當普遍。顯然，我會說非常重視製造業。但現在確鑿的證據是它正在從談話變成新的建設。

So it's a bit early to see it in our numbers. But if we do our jobs right and we get involved with those customers from the ground up, that should translate into the numbers in the coming quarters.

所以現在在我們的數字中看到它有點早。但如果我們做好我們的工作並從頭開始與這些客戶打交道，那應該會轉化為未來幾個季度的數字。

Okay. That's helpful. And then maybe a Kristen question. I think you mentioned 20 basis points is the expectation for operating margin dilution from the acquisitions in '23. Historically -- I guess I'm still kind of new to you guys. Historically, as you go out into '24, '25, would you expect that to narrow or even reverse and ultimately, you get margin accretion?

好的。這很有幫助。然後可能是克里斯汀的問題。我認為你提到的 20 個基點是 23 年收購對營業利潤率攤薄的預期。從歷史上看——我想我對你們來說還是個新手。從歷史上看，當你進入 24 和 25 年時，你會期望它會縮小甚至逆轉，最終你會獲得利潤增長嗎？

Yes, we would definitely expect it to narrow, and it eventually does become on par with the core business. So '24, I don't think you're going to hear much about the noise from those 2 acquisitions. And then as we run our integration playbook, there are a variety of levers we're pulling that get those businesses on par with the core MSC overall business.

是的，我們肯定希望它會縮小，並且它最終確實會與核心業務相提並論。所以 24 年，我認為你不會聽到太多關於這兩項收購的噪音。然後，當我們運行我們的集成劇本時，我們正在拉動各種槓桿，使這些業務與核心 MSC 整體業務相提並論。

Our next question today will come from David Manthey of Baird.

我們今天的下一個問題將來自 Baird 的 David Manthey。

Happy New Year, everyone.

祝大家新年快樂。

Happy new year, Dave.

新年快樂，戴夫。

Happy new year.

新年快樂。

Yes. As it relates to deprioritizing special dividends, if I look back over the past, say, 10 years, it looks like it's well over $0.5 billion. And how should we think about the reallocation of capital? Is that higher CapEx? Is it investments in the P&L? And -- or is it just more share repurchase to keep in that 1 to 2x leverage range? Any details on what you're thinking would be appreciated.

是的。由於它涉及取消特別股息的優先級，如果我回顧過去，比如說 10 年，它看起來遠遠超過 5 億美元。我們應該如何考慮資本的重新配置？那是更高的資本支出嗎？它是對損益表的投資嗎？並且 - 或者只是更多的股票回購以保持在 1 到 2 倍的槓桿範圍內？關於您的想法的任何詳細信息將不勝感激。

Yes, Dave, sure. I'll take this one. So I would say this, over time, we have had a capital allocation framework that began with 2 top priorities that are sort of 1A and 1B. And those are reinvestment into the core business to the extent we see high-return projects. And right now, we're pretty bullish there. And then 2 is continued steady growth in the ordinary dividend, and no change there.

是的，戴夫，當然。我要這個。所以我想說的是，隨著時間的推移，我們已經有了一個資本配置框架，該框架從 1A 和 1B 的 2 個首要任務開始。在我們看到高回報項目的範圍內，這些是對核心業務的再投資。而現在，我們非常看好那裡。然後2是普通股息繼續穩定增長，沒有變化。

I think the change in emphasis you heard from Kristen is on the next 2 priorities. The next 2 priorities are going to be share buyback at the right valuation levels and tuck-in acquisitions along the lines of what you saw from us in the last quarter, so tuck-ins to existing businesses like the metalworking and OEM fastener.

我認為你從 Kristen 那裡聽到的重點變化是關於接下來的兩個優先事項。接下來的 2 個優先事項將是在正確的估值水平上回購股票，並按照你在上個季度從我們那裡看到的那樣進行收購，因此對金屬加工和 OEM 緊固件等現有業務進行收購。

And I think the reason there, if you want to -- why the change, it's just the return prospects. We've always sort of never been wed to one tactic. It's more about where we see deploying the next dollar to its best use. And I think that we feel good about the prospects for the company. And when valuation levels are low in the stock, that's a good use of capital.

而且我認為那裡的原因，如果你想 - 為什麼改變，這只是回報前景。我們總是有點從未被一種策略所束縛。它更多地是關於我們看到將下一美元部署到最佳用途的地方。我認為我們對公司的前景感到滿意。當股票的估值水平較低時，這是對資本的一種很好的利用。

And I think you're also hearing from us our confidence growing in the tuck-in acquisitions based on our track record in the past few years. We feel good about the businesses we bought and the results that they're producing. And so that makes us more bullish on that as well.

而且我想你也從我們那裡聽到，根據我們過去幾年的業績記錄，我們對收購的信心在增長。我們對我們收購的企業以及它們產生的結果感覺良好。因此，這也讓我們更加看好這一點。

Sounds good. Could you talk about how the benefits of the line review will manifest in your results? What should we be looking for?

聽起來不錯。您能否談談線路審查的好處將如何體現在您的結果中？我們應該尋找什麼？

Yes, Dave. So a little early to say, but in general, and maybe what I'll do, and Kristen, you can fill in any missing pieces, just sort of step back and talk a little more about the strategy, the philosophy here, and then that will translate into how yields benefit.

是的，戴夫。所以說有點早，但總的來說，也許我會做什麼，克里斯汀，你可以填補任何遺漏的部分，只是退後一步，多談談戰略，這裡的哲學，然後這將轉化為如何產生收益。

But as I mentioned in the prepared remarks, Dave, if I think about the focus of our category organization for the past really 3 years now since COVID, it's been 2 things: number one, getting product to make sure we have product on the shelves to keep plants running; and number two, staying ahead of the crazy cost inflation that we've all been experiencing. From our perspective, it was check, check, really good job by our team on both of those.

但正如我在準備好的發言中提到的那樣，Dave，如果我考慮自 COVID 以來過去 3 年我們品類組織的重點，那就是兩件事：第一，獲取產品以確保我們的產品上架保持植物運轉；第二，保持領先於我們都經歷過的瘋狂成本通脹。從我們的角度來看，我們的團隊在這兩方面都做得很好。

The world is beginning to migrate to a new normal now, moderating inflation, stabilizing supply chains. This becomes the next natural evolution in the story. So what we're going to be looking to do is we're going to be looking at our assortment. And you're going to not see us deviate from our idea of having a really broad and really deep product assortment that's very important to our customers. But what we are going to do is look for opportunities for efficiencies. I think you can expect to see the benefits accrue in the form of purchase cost improvements. And that could either be the straight price we pay for products. It could be in the form of rebates or other adjustments, but that's certainly one area.

世界現在開始轉向新常態，緩和通貨膨脹，穩定供應鏈。這成為故事的下一個自然演變。因此，我們要做的是查看我們的分類。而且你不會看到我們偏離我們擁有真正廣泛和真正深入的產品分類的想法，這對我們的客戶非常重要。但我們要做的是尋找提高效率的機會。我認為您可以期待看到以採購成本改善的形式產生的收益。這可能是我們為產品支付的直接價格。它可能以回扣或其他調整的形式出現，但這肯定是一個方面。

I would expect to see benefits accrue in the form of operational efficiencies. To the extent we see potential to collapse at the fringe, at the margin, collapse some product lines or suppliers, et cetera, that they'd be operational, whether that's inventory savings or some OpEx and productivity improvements through our supply chain, that would be another area where I would expect to see benefit.

我希望看到以運營效率的形式產生收益。在某種程度上，我們看到有可能在邊緣、邊緣、崩潰一些產品線或供應商等方面崩潰，他們將繼續運營，無論是通過我們的供應鏈節省庫存還是一些運營支出和生產力改進，這將是另一個我希望看到好處的領域。

Dave, the only thing I'd add to that is we contemplated that process when we set the framework for the guidance ranges. I alluded to some initiatives coming online in the second half. They're going to change the sequencing of gross margins throughout the year.

戴夫，我唯一要補充的是，當我們為指導範圍設置框架時，我們考慮了這個過程。我提到了下半年將上線的一些舉措。他們將改變全年毛利率的順序。

That would be one of those, but attacking a lot of different things across price, cost and mix as we think about the second half in particular. But all kind of within that original operating margin framework of 12.7% to 13.3%.

那將是其中之一，但在我們特別考慮下半年時，會在價格、成本和組合方面攻擊很多不同的東西。但都在 12.7% 至 13.3% 的原始營業利潤率框架內。

Our next question today will come from [Paul Darts] with William Blair.

我們今天的下一個問題將來自 [Paul Darts] 和 William Blair。

So first question from me, Erik, reflecting on the supply chain environment and the disruptions we've seen over the last couple of years, is there a way you can qualify for us how do you think that the tight supply chain that we saw aided in your share gains over the last couple of years? Is there a way to parse out how big of an impact your internal initiatives had in taking share?

所以我的第一個問題，埃里克，反映了供應鏈環境和我們在過去幾年中看到的中斷，有沒有一種方法可以讓我們有資格獲得我們的資格，您如何看待我們看到的緊張供應鏈有助於在過去幾年中您的股票收益？有沒有辦法分析出您的內部計劃對分享份額的影響有多大？

Paul, what I would say, look -- qualitatively, what I would say is the past 3 years created a fairly unique opportunity for large, well-capitalized distributors that were able to -- I was talking earlier about getting product on the shelf.

保羅，我要說的是，從質量上講，我要說的是，過去 3 年為大型、資本充足的分銷商創造了一個相當獨特的機會，這些分銷商能夠——我之前談到過將產品上架。

In a tight supply chain environment, a couple of things happened. Number one, obviously, scarcity of product. So having product becomes paramount. And then the second thing is, obviously, tight supply chain means inflation.

在緊張的供應鏈環境中，發生了幾件事。第一，顯然，產品稀缺。因此，擁有產品變得至關重要。其次，很明顯，供應鏈緊張意味著通貨膨脹。

And I think the successful distributors, those that fared well through this crazy period were able to stay ahead of that and maintain or improve margins through what was a historic time. And I feel good about our performance on both of those fronts.

我認為成功的分銷商，那些在這個瘋狂時期表現良好的分銷商能夠保持領先地位，並在歷史性的時期保持或提高利潤率。我對我們在這兩個方面的表現感到滿意。

I think as we move forward and things normalize, if the question is, okay, does that opportunity, the share capture opportunity go away. Our view on it is that like our North Star has become generating productivity for our customers because, particularly, what -- in almost any environment you can think of, if they're booming, if things get slow, productivity -- and productivity could mean cost down or it could mean increasing manufacturing throughput to allow them to get more products into their customers' hands faster, that is becoming paramount.

我認為隨著我們的前進和事情的正常化，如果問題是，好吧，那個機會，份額捕獲機會消失了。我們對此的看法是，就像我們的 North Star 已經為我們的客戶創造生產力，因為，特別是，在幾乎任何你能想到的環境中，如果它們蓬勃發展，如果事情變得緩慢，生產力 - 和生產力可以意味著降低成本，或者可能意味著提高製造吞吐量，使他們能夠更快地將更多產品送到客戶手中，這正變得至關重要。

And that's where -- again, if you listen to each of our 5 growth levers, I tried to get this point across, they're not just about increasing dollar volume. They're intended to all serve a purpose, and it's all around positioning MSC as a partner to our customers to generate productivity. That's our North Star for the next several years.

這就是——再次，如果你聽我們的 5 個增長槓桿中的每一個，我試圖闡明這一點，它們不僅僅是增加美元數量。它們都旨在為一個目的服務，而這一切都圍繞著將 MSC 定位為我們客戶的合作夥伴以提高生產力。這是我們未來幾年的北極星。

Got it. That's very helpful. I appreciate that. The other question from me, and I appreciate the color you guys gave on the macro environment, but are you seeing here in early January, any bifurcation in the order rates between some of your larger customers and the small customers? And maybe if not even on order rates then how they're talking about the year ahead, how would you characterize your conversations with each?

知道了。這很有幫助。我很感激。我的另一個問題，我很欣賞你們對宏觀環境的看法，但你們在 1 月初在這裡看到你們的一些大客戶和小客戶之間的訂單率有任何分歧嗎？也許如果不考慮訂單率，那麼他們是如何談論未來一年的，你會如何描述你與每個人的談話？

Paul, I'll take that one. So nothing different than what we've been experiencing for the last few quarters. We're not seeing any deviations there. And we do -- that is kind of one of the things we tend to watch for any early leading indicators. So nothing notable to report there.

保羅，我要那個。因此，與過去幾個季度我們所經歷的沒什麼不同。我們在那裡沒有看到任何偏差。我們這樣做了——這是我們傾向於關注任何早期領先指標的事情之一。所以沒有什麼值得注意的報告。

As Erik mentioned kind of the macro sentiment, pretty consistent. We're looking more for pockets of softening per end markets at this point. But generally, still feeling good about the year, solid about our expectations and within that 5% to 9% ADS guidance range.

正如埃里克提到的那種宏觀情緒，非常一致。我們正在尋找更多的終端市場在這一點上走軟的口袋。但總的來說，今年仍然感覺良好，我們的預期很穩固，並且在 5% 到 9% 的 ADS 指導範圍內。

And our next question today will come from Patrick Baumann of JPMorgan.

我們今天的下一個問題將來自摩根大通的帕特里克鮑曼。

A quick one to start on inventories. Just wanted to get a sense of how you're feeling about current levels of inventory. And you talked about supply chain pressures and inflation easing just -- and then as well as some advantageous buying you've done maybe at year-end, but you've probably been doing that all along.

快速開始庫存。只是想了解一下您對當前庫存水平的看法。你談到了供應鏈壓力和通貨膨脹的緩解 - 然後以及你可能在年底所做的一些有利的購買，但你可能一直在這樣做。

Just curious how you think about inventories moving forward. Do you expect some destock now that the situation has kind of normalized around supply chain and inflation? Any color on that?

只是好奇您如何看待未來的庫存。既然圍繞供應鍊和通貨膨脹的情況已經正常化，您是否預計會出現一些去庫存？上面有顏色嗎？

Yes. Sure, Pat. I can take that one. So as you've mentioned at the end of your question, yes, the year-end advantageous buys, that's pretty typical for us. We're just -- it's part of the normal playbook that we would run.

是的。當然，帕特。我可以拿那個。因此，正如您在問題末尾提到的那樣，是的，年終有利購買，這對我們來說非常典型。我們只是 - 這是我們將運行的正常劇本的一部分。

I think more holistically, if you look at inventory, obviously, the last few years when we've been in this constrained supply chain environment, we've been flexing the balance sheet and certainly not skimping on inventory as that's been a way that we've been able to support our customers somewhat uniquely relative to the local distributors in that time period.

我更全面地認為，如果你看看庫存，很明顯，過去幾年我們一直處於這種受限的供應鏈環境中，我們一直在調整資產負債表，當然不會減少庫存，因為這是我們的一種方式相對於那個時期的本地分銷商，我們能夠在某種程度上為我們的客戶提供獨特的支持。

But going forward, we're definitely taking a closer look at inventory. We're kind of monitoring levels, looking at where it makes sense to adjust things given the environment, but certainly not doing anything that would compromise our ability to support the customer and to support our continued growth.

但展望未來，我們肯定會仔細研究庫存。我們有點監控水平，看看在給定環境的情況下調整事情是否有意義，但肯定不會做任何會損害我們支持客戶和支持我們持續增長的能力的事情。

Based on your standing outlook for ADS growth, I mean, what do you -- do you think current levels of inventory are appropriate? Do you think you're overstocked a little bit? Under stocked? Like how would you...

根據您對 ADS 增長的長期展望，我的意思是，您認為當前的庫存水平合適嗎？你覺得你有點積壓了嗎？存貨不足？比如你會怎樣...

I wouldn't say we're overstocked anywhere, and there's definitely been some differences in how we've been seeing kind of inventory levels in certain different product categories, like if we think about kind of metalworking inventory versus MRO.

我不會說我們在任何地方都庫存過多，而且我們在某些不同產品類別中看到的庫存水平肯定存在一些差異，比如我們考慮金屬加工庫存與 MRO 的種類。

But I wouldn't give you a specific range at this point, but I'd definitely say, if you think about the 100% operating cash flow conversion, there's sort of a range of inventory contemplated within that, that we feel confident in.

但我現在不會給你一個具體的範圍，但我肯定會說，如果你考慮 100% 的運營現金流轉換，那麼我們有信心在其中考慮一系列庫存。

I'll follow-up after the call on that. Maybe...

我會在電話會議後跟進。或許...

Pat, only other color I'd add on inventory is there's times -- and you've followed us for a little while here, like when we go into a different mode. Right now, we're still in growth mode. And in growth mode, even if things are moderating, whatever the growth percentages, we're still in growth mode, and that means keeping inventory on the shelves for customers.

帕特，有時我會在庫存中添加其他顏色——你在這里關注了我們一段時間，比如當我們進入不同的模式時。目前，我們仍處於增長模式。在增長模式下，即使情況正在放緩，無論增長百分比如何，我們仍處於增長模式，這意味著為客戶保持貨架上的庫存。

If there comes a point -- at some point, there'll be a point at which things change and we go into a different mode, and we -- that's a lever we can turn pretty quickly as part of a downturn playback. We're not there though.

如果有一點——在某個時刻，事情會發生變化，我們會進入不同的模式，我們——這是一個我們可以很快轉向的槓桿，作為經濟低迷回放的一部分。我們不在那裡。

Understood. Then on -- next question is on OpEx. Can you just help me understand the year-over-year moving parts? I mean you went from $257 million of OpEx in last year's first quarter to $280 million this year. I think acquisitions maybe add a little bit, but you have some gross savings of $6 million, like I think you talked about $1 million of investments.

明白了。然後 - 下一個問題是關於 OpEx 的。你能幫我了解同比變化的部分嗎？我的意思是你的運營支出從去年第一季度的 2.57 億美元增加到今年的 2.8 億美元。我認為收購可能會增加一點，但你總節省了 600 萬美元，就像我認為你談到了 100 萬美元的投資一樣。

It just seems like a pretty big increase. I'm guessing a lot of that's inflation related, but any color on the key moving parts in that year-over-year dollar number would be helpful.

這似乎是一個相當大的增長。我猜這在很大程度上與通貨膨脹有關，但在那個同比美元數字中關鍵移動部分的任何顏色都會有所幫助。

Yes. Sure, Pat. So a few things on the big drivers on a year-over-year basis. You're right, inflation is absolutely one of the biggest buckets there. That was around $9 million. We did also have an increase from having those 2 acquisitions, Engman-Taylor and Towers in the numbers for the first full quarter. That was around [$6 million].

是的。當然，帕特。因此，與去年同期相比，主要驅動因素有一些事情。你是對的，通貨膨脹絕對是那裡最大的桶之一。那大約是900萬美元。在第一個完整季度的數字中，我們也確實從這 2 次收購中獲得了增長，即 Engman-Taylor 和 Towers。那大約是 [600 萬美元]。

Year-over-year, we're still seeing kind of T&E normalize for our associates as we get kind of back to normal and how we've been out in the field. That was a couple of million of pressure, a little bit of noise on the variable OpEx. And then you've got some ups and things in there on higher D&As, some of the investments carrying over from the prior year. And then to your point, you got $5 million in net Mission Critical savings.

與去年同期相比，隨著我們恢復正常以及我們在該領域的表現，我們仍然看到員工的 T&E 正常化。那是幾百萬的壓力，變量 OpEx 上有一點噪音。然後你在更高的 D&As 上得到了一些提升和東西，一些投資從前一年結轉。然後就您的觀點而言，您獲得了 500 萬美元的淨關鍵任務節省。

And that $280 million, like as you think about it moving forward is for the rest of the year, is that kind of a -- how should I think about that absolute dollar number in the second quarter and the balance of the year?

而這 2.8 億美元，就像你認為它在今年剩餘時間裡向前推進一樣，是那種——我應該如何考慮第二季度和今年餘下時間的絕對美元數字？

I guess I'm thinking in context of pricing contributions that are probably moderating, would you expect kind of -- I would expect year-over-year to moderate on the OpEx growth as well. Is that the right assumption?

我想我在考慮可能正在緩和的定價貢獻的背景下，你會期望某種 - 我預計 OpEx 增長也會同比緩和。這是正確的假設嗎？

Yes. So second quarter on a dollar basis, probably down a little bit, but on a rate basis, it will still be up a tad from Q1. And then going forward in Q3 and Q4, kind of given some of the dynamics you described, I think 280 -- low $280 million is probably a pretty reasonable probably range for -- probably a good range for Q3, and I'd say ticking down even a bit there from Q4. The OpEx rate following Q2 will sequentially decline.

是的。所以第二季度以美元為基礎，可能會下降一點，但以利率為基礎，它仍然會比第一季度略有上升。然後在第三季度和第四季度繼續前進，考慮到你描述的一些動態，我認為 280 - 低 2.8 億美元可能是一個非常合理的可能範圍 - 可能是第三季度的一個很好的範圍，我會說滴答作響甚至比第四季度有所下降。第二季度之後的 OpEx 率將依次下降。

Our last question will come from Ken Newman of KeyBanc Capital Markets.

我們的最後一個問題將來自 KeyBanc Capital Markets 的 Ken Newman。

Maybe I'll just kind of dig into the metalworking demand. Obviously, you've talked a little bit about activity being relatively stable within your industrial side of your business. But obviously, the GBI has kind of been -- the metalworking index has kind of been a contraction now for 7 months. And I'm curious, have you seen any weakness within that portion of your business? And how do you view that part of the portfolio going forward?

也許我會深入了解金屬加工需求。顯然，您已經談到了您業務的工業方面的活動相對穩定。但很明顯，GBI 有點——金屬加工指數現在已經收縮了 7 個月。我很好奇，您是否發現您業務的這一部分有任何弱點？您如何看待未來投資組合的這一部分？

Yes, Ken, no question. Look, you look at the MBI, you look at the PMI, the sentiment indices are dropping considerably. I would say, inside of the company, I would characterize metalworking as a microcosm of what I characterize for the overall customer base, which is moderating and certainly some pockets of softening, but not dropping like a rock and not dropping as the indices would suggest.

是的，肯，毫無疑問。看，你看看 MBI，你看看 PMI，情緒指數正在大幅下降。我會說，在公司內部，我會將金屬加工描述為我對整體客戶群的描述的一個縮影，它正在緩和，當然還有一些軟化，但不會像岩石一樣下降，也不會像指數所暗示的那樣下降.

I think part of the story, Ken, is a lot of -- if you take some of the end markets that drive metalworking consumption, many of them, several of them have been really beat up during COVID. And so they still have room to grow.

肯，我認為故事的一部分是很多——如果你拿一些推動金屬加工消費的終端市場來說，其中很多，其中有幾個在 COVID 期間確實受到了打擊。所以他們還有成長的空間。

So I mentioned aerospace being one. Another that drives metalworking consumption through the economy, oil and gas, with oil prices being high, activity levels are up, so that's sort of buoying things. So I mean, nothing really to speak of out of the ordinary or out of what we've described for the total company as it relates to metalworking.

所以我提到航空航天就是其中之一。另一個通過經濟、石油和天然氣推動金屬加工消費的因素，油價高企，活動水平上升，所以這是一種提振。所以我的意思是，與金屬加工相關的整個公司沒有什麼特別的或超出我們所描述的。

Okay. Are you concerned at all about a potential lag impact of that sentiment index? Or has there been enough structural changes you think that you can help to offset that? Because obviously, you've outperformed in the last 6 months relative to that sentiment index.

好的。您是否擔心該情緒指數的潛在滯後影響？或者是否有足夠的結構變化，你認為你可以幫助抵消它？因為很明顯，你在過去 6 個月的表現優於該情緒指數。

Yes. Look, Ken, I mean, I wouldn't say concerned. We're watching it. And if you go back and you run historic patterns, typically, there's a pretty good correlation with -- the sentiment is like the MBI and our revenues. But look, really, that's why you saw -- when we gave the annual guidance of 5% to 9%, that's down considerably from where we're running in Q1. And part of that was -- there's a little bit of comp in there from the pricing that we talked about. And then part of that is contemplating some further softening.

是的。看，肯，我的意思是，我不會說擔心。我們正在看著它。如果你回過頭來運行歷史模式，通常情況下，與情緒有很好的相關性，就像 MBI 和我們的收入一樣。但是，真的，這就是為什麼你看到了——當我們給出 5% 到 9% 的年度指導時，這比我們在第一季度的運行水平要低得多。其中一部分是——我們談到的定價中有一些補償。然後其中一部分是考慮進一步軟化。

So we think it is going to happen. So do we watch it? Absolutely. Are we modeling and planning? Yes. Do we worry about it? No. Because from our standpoint, we can make strides almost no matter what happens in terms of capturing share from local distributors. So that's our assessment.

所以我們認為它會發生。那我們看嗎？絕對地。我們正在建模和規劃嗎？是的。我們擔心嗎？不會。因為從我們的角度來看，無論發生什麼情況，我們幾乎都可以在從當地分銷商那里奪取份額方面取得進展。這就是我們的評估。

Got it. And then my last question is probably more for Kristen. But -- Kristen, you mentioned some warehouse automation investments towards the end of your prepared remarks. I'm curious if you could just give a little bit more color of what exactly that entails and maybe the timing of the benefits that you expect to see out of those?

知道了。然後我的最後一個問題可能更多是針對克里斯汀的。但是——克里斯汀，你在準備好的發言結束時提到了一些倉庫自動化投資。我很好奇您是否可以更詳細地說明這到底意味著什麼，以及您希望從中看到的好處的時間？

Yes, sure. So we obviously have a lot of automation in the warehouses today. We're looking at kind of extending that further, modernizing some things generally in response to a lot of the pressure that we've seen around labor inflation recently, but certainly always just looking for opportunities to be more efficient, provide better service levels to the customer.

是的，當然。所以我們今天的倉庫顯然有很多自動化。我們正在考慮進一步擴展，對一些東西進行現代化改造，以應對我們最近看到的勞動力通脹壓力，但肯定總是在尋找提高效率的機會，提供更好的服務水平客戶。

In terms of when the benefits come online for those, Ken, I'd say it's really not materially until '24. Some of those are definitely longer-term investments. But when we think about kind of like the ongoing opportunities around Mission Critical and what that looks like post '23, this would be kind of one of the big rock projects that start to kick up again that deliver savings in operating expenses going forward.

就這些福利何時上線而言，Ken，我會說直到 24 年才真正實現。其中一些絕對是長期投資。但是，當我們考慮像 Mission Critical 相關的持續機會以及 23 年後的情況時，這將是一個大型項目，它會再次啟動，從而節省未來的運營費用。

And I apologize if I missed it but did you specify how much those investments are?

如果我錯過了，我深表歉意，但你有沒有具體說明這些投資有多少？

I did not. No.

我沒有。不。

And at this time, we will conclude our question-and-answer session. I'd like to turn the conference back over to John Chironna for any closing remarks.

在這個時候，我們將結束我們的問答環節。我想將會議轉回給 John Chironna，聽取任何閉幕詞。

Thank you, Alison. As a quick reminder, our fiscal '23 second quarter earnings date is now set for April 4, 2023. And we will be attending at least one investor conference over the next few months as well as conducting several road shows. So we look forward to seeing you in person. Thank you for joining us today.

謝謝你，艾莉森。快速提醒一下，我們的 23 財年第二季度收益日期現在定在 2023 年 4 月 4 日。在接下來的幾個月裡，我們將至少參加一次投資者會議，並進行幾次路演。因此，我們期待與您見面。感謝您今天加入我們。

The conference has now concluded. We thank you for attending today's presentation. You may now disconnect your lines.

會議現已結束。我們感謝您參加今天的演講。您現在可以斷開線路。