MYR Group Inc (MYRG) 2023 Q4 法說會逐字稿

Good morning, everyone, and welcome to the MYR Group fourth quarter and full-year 2023 earnings results conference call. (Operator Instructions) Today's conference is being recorded.

大家早安，歡迎參加 MYR 集團第四季和 2023 年全年業績電話會議。（操作員指示）今天的會議正在錄音。

At this time, for opening remarks and introductions, I would like to turn the conference over to David Gutierrez of Dresner Corporate Services. Please go ahead, David.

現在，我想將會議交給 Dresner Corporate Services 的 David Gutierrez 進行開場演講和介紹。請繼續，大衛。

Thank you, and good morning, everyone. I'd like to welcome you to the MYR Group conference call to discuss the company's fourth quarter and full-year results for 2023, which were reported yesterday.

謝謝大家，大家早安。歡迎您參加 MYR 集團電話會議，討論該公司昨天公佈的 2023 年第四季和全年業績。

Joining us on today's call are Rick Swartz, President and Chief Executive Officer; Kelly Huntington, Senior Vice President and Chief Financial Officer; Tod Cooper, Senior Vice President and Chief Operating Officer of MYR Group's Transmission & Distribution segment; and Don Egan, Senior Vice President and Chief Operating Officer of MYR Group's Commercial & Industrial segment.

加入我們今天電話會議的還有總裁兼執行長 Rick Swartz；凱莉‧亨廷頓，資深副總裁兼財務長； Tod Cooper，MYR 集團輸配電部門資深副總裁兼營運長；以及 MYR 集團商業和工業部門高級副總裁兼營運長 Don Egan。

If you did not receive yesterday's press release, please contact Dresner Corporate Services at (312) 726-3600, and we will send you a copy, or go to the MYR Group website, where a copy is available under the Investor Relations tab. Also, a webcast replay of today's call will be available for seven days on the Investors page of the MYR Group website at myrgroup.com.

如果您沒有收到昨天的新聞稿，請致電(312) 726-3600 聯絡Dresner Corporate Services，我們將向您發送一份副本，或造訪MYR Group 網站，在「投資者關係」標籤下可以找到副本。此外，今天電話會議的網路廣播重播將在 MYR 集團網站 myrgroup.com 的投資者頁面上提供，為期 7 天。

Before we begin, I want to remind you that this discussion may contain forward-looking statements. Any such statements are based upon information available to MYR Group's management as of this date, and MYR Group assumes no obligation to update any such forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these statements are no guarantee of future performance.

在我們開始之前，我想提醒您，本次討論可能包含前瞻性陳述。任何此類聲明均基於 MYR 集團管理層截至目前所掌握的信息，MYR 集團不承擔更新任何此類前瞻性聲明的義務。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前瞻性陳述有重大差異。因此，這些陳述並不能保證未來的表現。

These risks and uncertainties are discussed in the company's annual report on Form 10-K for the year ended December 31, 2023, and in yesterday's press release.

這些風險和不確定性在公司截至 2023 年 12 月 31 日的 10-K 表格年度報告以及昨天的新聞稿中進行了討論。

Certain non-GAAP financial information will be discussed on the call today. A reconciliation of these non-GAAP measures to the most comparable GAAP measures is set forth in yesterday's press release.

今天的電話會議將討論某些非公認會計準則財務資訊。昨天的新聞稿中列出了這些非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節表。

With that said, let me turn the call over to Rick Swartz.

話雖如此，讓我把電話轉給里克·斯沃茨。

Thanks, Dave, and good morning, everyone. Welcome to our fourth quarter and full-year 2023 conference call to discuss financial and operational results. I will begin by providing a summary of the fourth quarter and full-year results, and then we'll turn the call over to Kelly Huntington, our Chief Financial Officer for a more detailed financial review. Following Kelly's overview, Tod Cooper and Don Egan, Chief Operating Officers for our T&D and C&I segments, will provide a summary of our segment's performance and discuss some of MYR Group's opportunities going forward. I will then conclude today's call with some closing remarks and open the call up for your questions.

謝謝戴夫，大家早安。歡迎參加我們的 2023 年第四季和全年電話會議，討論財務和營運績效。我將首先提供第四季度和全年業績的摘要，然後我們將把電話轉給我們的財務長凱利亨廷頓，以進行更詳細的財務審查。在 Kelly 的概述之後，我們 T&D 和 C&I 部門的首席營運長 Tod Cooper 和 Don Egan 將總結我們部門的業績，並討論 MYR Group 的一些未來機會。然後，我將以一些結束語結束今天的電話會議，並開始提問。

We finished 2023 with solid financial performance in the fourth quarter and full-year revenues of $3.6 billion, setting a record high for the ninth consecutive year. A steady backlog of $2.51 billion reflects a healthy bidding environment and the continued investment in infrastructure to meet growing electrification demands across the US and Canada. Our accomplishments this year demonstrate the strength and expansion of deep client relationships through alliance and multi-year service agreements while strategically pursuing and capturing new opportunities.

2023 年，我們第四季財務表現穩健，全年營收達 36 億美元，連續第九年創下歷史新高。25.1 億美元的穩定積壓反映了健康的招標環境以及為滿足美國和加拿大不斷增長的電氣化需求而對基礎設施的持續投資。我們今年的成就證明了透過聯盟和多年服務協議建立的深厚客戶關係的實力和擴展，同時策略性地尋求和抓住新的機會。

Our December 2023 report from clean grid initiative forecasts electricity demand will increase from 2.6% to 4.7% in the US over the next five years, with grid planners expecting a growth of 38 gigawatts through 2028, nearly double the 2022 forecast. In total, the report found $630 billion in near-term investment will be required to meet this load growth. MYR Group will continue to serve as a strong and nimble partner for our clients as they strive to meet demands for reliable power.

我們的清潔電網計畫 2023 年 12 月報告預測，未來五年美國電力需求將從 2.6% 成長至 4.7%，電網規劃者預計到 2028 年將成長 38 吉瓦，幾乎是 2022 年預測的兩倍。報告發現，總體而言，需要 6,300 億美元的近期投資才能滿足這一負載成長。MYR 集團將繼續作為客戶強大且靈活的合作夥伴，努力滿足客戶對可靠電力的需求。

In our C&I segment, data centers continue to provide steady opportunity alongside our chosen core markets, including wastewater, transportation, and healthcare. The same clean grid initiative report forecast data center growth alone to exceed $150 billion through 2028 as the use of artificial intelligence increases. We continue to track these opportunities and seek to intelligently bid and execute projects to position us for future success.

在我們的工商業領域，資料中心繼續與我們選擇的核心市場一起提供穩定的機會，包括廢水、運輸和醫療保健。同一份清潔電網計畫報告預測，隨著人工智慧使用的增加，到 2028 年，光是資料中心的成長就將超過 1500 億美元。我們將繼續追蹤這些機會，並尋求明智地投標和執行項目，為我們未來的成功做好準備。

Grid modernization, reliability improvement, system hardening, decarbonization, and greater usage of hybrid cloud environments and artificial intelligence are the key market drivers that present opportunities for consistent success across our business. The tremendous investments being made in electrical infrastructure are encouraging and highlight why we believe our chosen markets are poised for ongoing success for many years to come.

電網現代化、可靠性改進、系統強化、脫碳以及混合雲環境和人工智慧的更多使用是關鍵的市場驅動因素，為我們的業務持續成功提供了機會。在電力基礎設施方面進行的巨額投資令人鼓舞，並凸顯了為什麼我們相信我們所選擇的市場將在未來許多年內持續取得成功。

Now Kelly will provide details on our fourth quarter and full-year 2023 financial results.

現在，Kelly 將提供有關我們第四季度和 2023 年全年財務業績的詳細資訊。

Thank you, Rick, and good morning, everyone. For the year ended December 31, 2023, we reached record annual revenues of $3.6 billion, full-year net income of $91 million, and EBITDA of $188 million. Our fourth-quarter 2023 revenue for $1 billion, a record high and an increase of 16% compared to the same period last year.

謝謝你，瑞克，大家早安。截至 2023 年 12 月 31 日的年度，我們的年收入達到創紀錄的 36 億美元，全年淨利潤為 9,100 萬美元，EBITDA 為 1.88 億美元。我們2023年第四季營收為10億美元，創歷史新高，與去年同期相比成長16%。

Our fourth quarter T&D revenues were $592 million, a record high for our T&D segment and an increase of 15% compared to the same period last year. The breakdown of T&D revenues was $403 million for transmission, a record high, and $189 million for distribution. T&D segment revenues increased due to higher revenue on transmission projects primarily related to higher revenue on clean energy projects as well as higher revenue on distribution projects. Work performed under Master Service Agreement continues to represent approximately 50% of our T&D revenues.

我們第四季的輸配電收入為 5.92 億美元，創下輸配電業務的歷史新高，與去年同期相比成長 15%。T&D 收入細分為：傳輸收入 4.03 億美元，創歷史新高；分配收入 1.89 億美元。輸配電部門收入的成長是由於輸電項目收入增加，這主要與清潔能源項目收入增加以及配電項目收入增加有關。根據主服務協議執行的工作繼續占我們 T&D 收入的約 50%。

C&iI revenues were $413 million, a record high for our C&I segment and an increase of 18% compared to the same period last year. C&I revenues increased primarily due to higher revenue related to clean energy projects.

C&iI 營收為 4.13 億美元，創下 C&I 部門的歷史新高，與去年同期相比成長 18%。工商業收入的成長主要是由於與清潔能源項目相關的收入增​​加。

Our gross margin was 9.7% for the fourth quarter of 2023 compared to 11.1% for the same period last year. The decrease in gross margin was primarily due to labor and project inefficiencies, some of which were caused by supply chain disruption and inclement weather experienced on certain projects. Gross margin was also negatively impacted by rising costs associated with inflation and unfavorable job closeouts. These margin decreases were partially offset by better-than-anticipated productivity and favorable weather on our projects.

2023 年第四季我們的毛利率為 9.7%，而去年同期為 11.1%。毛利率下降主要是由於勞動力和專案效率低下，其中一些是由於供應鏈中斷和某些專案遇到的惡劣天氣造成的。毛利率也受到通貨膨脹導致的成本上升和不利的裁員的負面影響。這些利潤率的下降被我們專案好於預期的生產力和有利的天氣所部分抵消。

T&D operating income margin was 7.2% for the fourth quarter of 2023 compared to 8% for the same period last year. The decrease was primarily due to labor and supply chain inefficiencies mainly related to clean energy projects, inclement weather, and an unfavorable job closeout. These decreases were partially offset by favorable weather on a project and better than anticipated productivity.

2023 年第四季 T&D 營業利益率為 7.2%，而去年同期為 8%。下降的主要原因是勞動力和供應鏈效率低下，主要與清潔能源項目、惡劣天氣和不利的工作結束有關。這些下降被專案的有利天氣和好於預期的生產力部分抵消。

C&I operating income margin was 2.1% for the fourth quarter of 2023 compared to 3.6% for the same period last year. The decrease was primarily due to labor and project inefficiencies, some of which were caused by supply chain disruptions and inflation and unfavorable job closeouts. These decreases were partially offset by better-than-anticipated productivity.

2023 年第四季工商業營業利潤率為 2.1%，而去年同期為 3.6%。下降的主要原因是勞動力和專案效率低下，其中一些是由供應鏈中斷、通貨膨脹以及不利的裁員造成的。這些下降被好於預期的生產力部分抵消。

Fourth-quarter 2023 SG&A expenses were $60 million, an increase of $2 million compared to the same period last year. The increase was primarily due to higher employee-related expenses to support the growth in our operations and an increase in contingent compensation expense related to a prior acquisition, partially offset by a decrease in employee incentive compensation costs. Fourth-quarter 2023 interest expense was $2 million, an increase of $600,000 compared to the same period last year. The increase was primarily due to higher interest rates and higher outstanding debt balances during the fourth quarter of 2023 as compared to the same period last year.

2023 年第四季 SG&A 費用為 6,000 萬美元，較去年同期增加 200 萬美元。這一成長主要是由於支持業務成長的員工相關費用增加以及與先前收購相關的或有薪酬費用增加，但部分被員工激勵薪酬成本的減少所抵消。2023年第四季利息支出為200萬美元，較去年同期增加60萬美元。這一增長主要是由於 2023 年第四季與去年同期相比利率上升和未償債務餘額增加。

Fourth-quarter 2023 net income was $24 million compared to $25 million for the same period last year. Net income per diluted share of $1.43 decreased compared to $1.46 for the same period last year. Fourth-quarter 2023 EBITDA was $53 million compared to $52 million for the same period last year.

2023 年第四季淨利為 2,400 萬美元，去年同期為 2,500 萬美元。攤薄後每股淨利為 1.43 美元，較去年同期的 1.46 美元有所下降。2023 年第四季 EBITDA 為 5,300 萬美元，去年同期為 5,200 萬美元。

Total backlog as of December 31, 2023 was $2.51 billion, a slight increase from the prior year. Total backlog as of December 31, 2023, consisted of $960 million for our T&D segment and $1.55 billion for our C&I segment.

截至 2023 年 12 月 31 日，積壓訂單總額為 25.1 億美元，較上年略有增加。截至 2023 年 12 月 31 日，積壓訂單總額包括 T&D 部門的 9.6 億美元和 C&I 部門的 15.5 億美元。

Fourth-quarter 2023 operating cash flow was $43 million compared to operating cash flow of $94 million for the same period last year. The decrease in cash provided by operating activities was primarily due to the timing of billings and payments associated with project starts and completion. Fourth-quarter 2023 free cash flow was $22 million compared to free cash flow of $65 million for the same period last year, reflecting the decrease in operating cash flow, partially offset by lower capital expenditure.

2023 年第四季營運現金流為 4,300 萬美元，去年同期營運現金流為 9,400 萬美元。經營活動提供的現金減少主要是由於與專案啟動和完成相關的帳單和付款時間。2023 年第四季自由現金流為 2,200 萬美元，而去年同期自由現金流為 6,500 萬美元，反映出營運現金流的減少，但部分被資本支出減少所抵銷。

Moving to liquidity in our balance sheet, we had approximately $279 million of working capital, $36 million of funded debt, and $442 million in borrowing availability under our credit facility as of December 31, 2023. We have continued to maintain a strong funded debt-to-EBITDA leverage ratio of 0.19 times as of December 31, 2023. We believe that our credit facility, strong balance sheet, and future cash flow from operations will enable us to meet our working capital needs, support the organic growth of our business, pursue acquisitions, and opportunistically repurchase shares.

轉向資產負債表中的流動性，截至 2023 年 12 月 31 日，我們的信貸安排下擁有約 2.79 億美元的營運資金、3,600 萬美元的融資債務以及 4.42 億美元的可用借款。截至 2023 年 12 月 31 日，我們持續維持 0.19 倍的強勁融資債務與 EBITDA 槓桿率。我們相信，我們的信貸額度、強勁的資產負債表和未來的營運現金流將使我們能夠滿足營運資金需求，支持我們業務的有機成長，尋求收購，並伺機回購股票。

I'll now turn the call over to Tod Cooper who will provide an overview of our transmission and distribution segments.

我現在將把電話轉給托德·庫珀，他將概述我們的輸電和配電部門。

Thanks, Kelly, and good morning, everyone. The T&D segment achieved solid fourth quarter and full-year 2023 results, once again proving that our business principles of partnering closely with our clients in executing our projects safely with expected quality and on-time delivery remain intact and effective. Expanding relationships with our long-term clients through alliance and Master Service Agreements and strategically bidding and winning work with new and existing clients helped us continue to strengthen and grow our market presence.

謝謝，凱利，大家早安。T&D 部門在 2023 年第四季和全年取得了穩健的業績，再次證明我們與客戶密切合作、以預期品質和按時交付安全執行專案的業務原則仍然完整有效。透過聯盟和主服務協議擴大與長期客戶的關係，以及策略性地競標並贏得與新舊客戶的合作，幫助我們繼續加強和擴大我們的市場影響力。

As Rick mentioned, the Clean Grid Initiative report forecasts robust investments in the coming years, and we believe there are abundant opportunities for sustained growth in this market. Our strategic insight survey of T&D clients conducted earlier this year had 67% of the respondents planning increased new transmission build over the next five years and validates the Clean Grid Initiative report for the growing electrification demand in the US with 56% of our clients ranking load demand as a high-impact factor in their businesses' strategic direction.

正如里克所提到的，清潔電網倡議報告預測未來幾年投資強勁，我們相信這個市場有大量持續成長的機會。我們今年稍早對T&D 客戶進行的策略洞察調查顯示，67% 的受訪者計劃在未來五年內增加新的輸電建設，並驗證了清潔電網倡議報告對美國不斷增長的電氣化需求的影響，其中56% 的客戶對負載進行了排名需求作為其業務策略方向的一個高影響因素。

The solar market faced headwinds in 2023. We mentioned on our third-quarter call that rising labor costs, project inefficiencies, and weather most notably on a few solar projects along with supply chain disruptions affected our financial results. This is true for the fourth quarter as well, and we continue to work with our clients and project teams to advance these projects to completion. We anticipate that the majority of the field work on these projects will be completed by the beginning of the third quarter. However, our outlook for solar opportunities and ability to execute remains positive as we see rising labor cost stabilizing and supply chain issues becoming less severe.

2023年太陽能市場面臨阻力。我們在第三季電話會議上提到，勞動成本上升、專案效率低落、天氣（尤其是一些太陽能專案）以及供應鏈中斷影響了我們的財務表現。第四季也是如此，我們將繼續與客戶和專案團隊合作，推動這些專案完成。我們預計這些項目的大部分現場工作將在第三季初完成。然而，我們對太陽能機會和執行能力的前景仍然樂觀，因為我們看到勞動成本穩定上升，供應鏈問題變得不那麼嚴重。

The fourth-quarter 2023 Solar Market Insight report released by the Solar Energy Industries Association and Wood Mackenzie reported 58% growth compared to the third quarter of 2022, and their outlook remains strong for the solar markets trajectory over the next five years, forecasting an average 14% growth annually over that period. We will continue to closely monitor and strategically pursue opportunities in the solar markets.

太陽能產業協會和Wood Mackenzie發布的《2023年第四季太陽能市場洞察報告》報告稱，與2022年第三季相比成長了58%，他們對未來五年太陽能市場軌蹟的前景依然強勁，預測平均在此期間每年增長14%。我們將繼續密切關注並策略性地尋求太陽能市場的機會。

Within the T&D segment, transmission, distribution, substation, and clean energy projects of varying size, complexity, and capacity continue to create a steady pipeline of work. Across the US and Canada, we have won or renewed several MSAs in 2023 and have been successful in securing a nice share of lump-sum transmission, substation, and distribution work.

在輸配電領域，不同規模、複雜程度和容量的輸電、配電、變電站和清潔能源專案持續創造穩定的工作管道。在美國和加拿大，我們已在 2023 年贏得或續簽了多項 MSA，並成功獲得了一次性輸電、變電站和配電工作的大部分份額。

In summary, we are proud of our accomplishments in the fourth quarter and all of 2023. Our teams maintained a strong focus on safety and project execution, positioning us as a strong partner in the T&D industry into the future, and I thank them for their tremendous efforts. Increased grid demand and reliability and aging electrical infrastructure, decarbonization goals, and legislative funding remain primary market drivers and when combined with our operational excellence positions us well for long-term success in the segment.

總之，我們對第四季和 2023 年全年的成就感到自豪。我們的團隊始終高度重視安全性和專案執行，使我們成為輸配電產業未來的強大合作夥伴，我感謝他們付出的巨大努力。電網需求和可靠性的增加以及電力基礎設施的老化、脫碳目標和立法資金仍然是主要的市場驅動因素，與我們卓越的營運相結合，我們將在該領域取得長期成功。

In closing, as I step down as the Chief Operating Officer of MYR Group's Transmission & Distribution segment, I'd like to thank Rick and the entire management team for their support throughout my career as well as the thousands of employees whose hard work and dedication on all of our projects have made MYR what it is today. I look forward to supporting Rick and the team with other initiatives going forward in what remains an exciting and dynamic market.

最後，在我卸任 MYR 集團輸配電部門首席營運官之際，我要感謝 Rick 和整個管理團隊在我職業生涯中的支持，以及成千上萬的辛勤工作和奉獻精神的員工我們所有的項目造就了今天的馬來西亞林吉特。我期待著支持 Rick 和團隊在這個仍然令人興奮和充滿活力的市場中採取其他舉措。

I'll now turn the call over to Don Egan to provide an overview of our commercial and industrial segment.

我現在將把電話轉給唐伊根 (Don Egan)，概述我們的商業和工業部門。

Thanks, Todd, and good morning, everyone. Our C&I segment saw steady growth, thanks to healthy bidding activity and our continued ability to safely and skilfully execute projects while leveraging our strong vendor relationships to mitigate inflationary and supply chain headwinds. Our backlog increased as we capture desirable projects in our core markets, and we continue to see and track new opportunities in data centers, transportation, clean energy, and healthcare.

謝謝托德，大家早安。我們的工商業部門實現了穩定成長，這要歸功於健康的投標活動以及我們持續安全、熟練地執行專案的能力，同時利用我們強大的供應商關係來減輕通貨膨脹和供應鏈的不利因素。隨著我們在核心市場抓住理想的項目，我們的積壓訂單不斷增加，並且我們繼續尋找和追蹤資料中心、交通、清潔能源和醫療保健領域的新機會。

As Rick mentioned earlier, the December 2023 clean grid initiative report forecasts significant growth in data centers across the US, driven by the rise of artificial intelligence and hybrid cloud environments. The report found investments in data centers as well as new industrial manufacturing facilities as key drivers for the significant near-term investment to meet load growth demands, with $481 billion in commitments for industrial and manufacturing facilities since 2021 in addition to the announcement of 200 manufacturing facilities this past year.

正如 Rick 先前所提到的，2023 年 12 月的清潔電網計畫報告預測，在人工智慧和混合雲環境興起的推動下，美國各地的資料中心將顯著成長。該報告發現，對資料中心和新工業製造設施的投資是滿足負載成長需求的近期重大投資的關鍵驅動力，自2021 年以來，除了宣布了200 個製造設施外，還承諾投資4,810 億美元用於工業和製造設施。去年的設施。

Data centers are forecasted to increase from 17 gigawatts to 45 megawatts of load demand by 2030, the report found. These forecasts align with the healthy activity we've seen with Sturgeon Electric, executing and pursuing additional data center projects in Arizona and Colorado. Pharmaceutical manufacturing is another core market showing strong bidding activity across the segment that we continue to monitor and intelligently pursue.

報告發現，預計到 2030 年，資料中心的負載需求將從 17 兆瓦增加到 45 兆瓦。這些預測與我們所看到的 Sturgeon Electric 的健康活動相一致，即在亞利桑那州和科羅拉多州執行和追求更多資料中心項目。藥品製造是另一個核心市場，該市場的投標活動十分活躍，我們將繼續監控並明智地追​​求這個市場。

Outside of data centers and pharmaceuticals, Western Pacific continues to perform a pipeline of transportation work and monitor exciting transit opportunities in Canada. CSI is executing clean energy and commercial projects across California, while water treatment and healthcare facilities continue to offer strong opportunities throughout the C&I business. A few of our district offices were negatively impacted from long-term, pre-COVID-19 projects that it continued inflationary and supply chain disruptions during the quarter. Most of these projects will be completed during the first half of this year, allowing us to focus and execute on our healthy backlog of projects. Through our strengths of proven pre-construction service, strong execution, and national buying power, we continue to collaborate with our clients, enabling us to secure additional work.

除了資料中心和製藥之外，西太平洋公司繼續進行一系列運輸工作，並監控加拿大令人興奮的運輸機會。CSI 正在加州各地執行清潔能源和商業項目，而水處理和醫療保健設施繼續為整個工商業行業提供強大的機會。我們的一些地區辦事處受到了 COVID-19 之前的長期專案的負面影響，該專案在本季度持續出現通貨膨脹和供應鏈中斷。這些項目大部分將在今年上半年完成，使我們能夠專注並執行健康的積壓項目。憑藉我們成熟的施工前服務、​​強大的執行力和全國購買力的優勢，我們繼續與客戶合作，使我們能夠獲得額外的工作。

To conclude, our chosen core markets are healthy, and the strength of our current client relationships are generating additional pursuits. Our dedicated employees continue to respond to lingering challenges to the business segment with proactive and customer-facing communication that help MYR Group maintain our leading positions in the markets we serve. We are proud of their dedication, commitment to our organizational values, and the strong culture they create.

總而言之，我們選擇的核心市場是健康的，我們目前客戶關係的實力正在產生額外的追求。我們敬業的員工繼續透過積極主動、面向客戶的溝通來應對業務部門長期存在的挑戰，幫助 MYR 集團在我們所服務的市場中保持領先地位。我們為他們的奉獻精神、對我們組織價值的承諾以及他們創造的強大文化感到自豪。

Thanks, everyone, for your time today. I will now turn the call back to Rick who will provide us with some closing comments.

謝謝大家今天抽出時間。現在我將把電話轉回給里克，他將為我們提供一些結束語。

Thank you for those updates, Kelly, Tod, and Dan. We are proud of our growth which reflects our ongoing commitment to strong operating principles, sound business strategies, and our ability to maintain and expand long-term customer relationships across both business segments. We believe the future is promising for our industry as demand for electrification increases and our communities come to depend on reliable, clean energy more than ever before. Our accomplishments in 2023 are the result of our talented and dedicated employees. Their commitment is admirable, and I appreciate each of them for placing tremendous care in everything they do.

感謝凱利、托德和丹提供的最新消息。我們為我們的成長感到自豪，這反映了我們對強有力的營運原則、健全的業務策略的持續承諾，以及我們在兩個業務部門維持和擴大長期客戶關係的能力。我們相信，隨著電氣化需求的增加以及我們的社區比以往任何時候都更加依賴可靠、清潔的能源，我們行業的未來充滿希望。我們在 2023 年所取得的成就是我們才華洋溢、敬業的員工的成果。他們的奉獻精神令人欽佩，我感謝他們每個人對所做的一切都付出了巨大的努力。

I would also like to thank Todd for his contributions to the company over his 33 years of service and in his tenure as COO as he transitions towards retirement. And I also welcome Brian Stern, Senior Vice President and COO to our T&D segment.

我還要感謝托德在 33 年的服務生涯中以及在擔任首席營運官期間向退休過渡期間對公司做出的貢獻。我還歡迎資深副總裁兼營運長 Brian Stern 加入我們的 T&D 部門。

Finally, I thank each of you for your ongoing commitment and support to the success of our organization. I look forward to working with you going forward.

最後，我感謝你們每一個人對我們組織的成功的持續承諾和支持。我期待與您繼續合作。

Operator, we are now ready to open the call up for your comments and questions.

接線員，我們現在準備開始徵集您的意見和問題。

(Operator Instructions) Justin Hauke, Baird.

（操作員說明）Justin Hauke，Baird。

I wanted to start, I guess, I mean, this has been the theme all year and certainly here in the fourth quarter as well with -- your revenue for the year was really, really strong, and the margins have been held back here in the quarter. You called out the 220 basis points of negative gross profit revisions on projects for the year. That was 170 basis points. So I guess I'm just trying to understand how much of an ongoing drag some of these projects are going to be, and they completed and you don't have low margin or zero margin bad jobs there continue to run through? Or how should we think about that kind of drag from the profit adjustments continuing in '24?

我想開始，我想，我的意思是，這一直是全年的主題，當然也是第四季度的主題——你們今年的收入真的非常強勁，而利潤率一直受到抑制。該季度。您對今年專案的毛利進行了 220 個基點的負修正。那是170個基點。所以我想我只是想了解其中一些項目將持續受到多大的拖累，並且它們已經完成，並且您不會繼續遇到低利潤或零利潤的糟糕工作？或者我們應該如何看待 24 年持續的利潤調整帶來的拖累？

Sure, sure. I would look at it on the T&D side, I think we talked about it last quarter that the majority of our issues were really on a handful of solar projects in one geographic area. So with that, those projects, as Todd said during his script, will end at the end of the second quarter, beginning of the third quarter with field labor. We'll continue to negotiate and go through that side with the customer and make sure that we get hopefully a fair agreement in the end.

一定一定。我會從輸配電方面來看待這個問題，我想我們上個季度談過，我們的大部分問題實際上都集中在一個地理​​區域的少數太陽能專案上。因此，正如托德在劇本​​中所說，這些項目將在第二季末結束，並在第三季初進行現場工作。我們將繼續與客戶進行談判並解決這一問題，並確保我們最終能達成公平的協議。

But I think that will continue to have some margin pressures on our T&D side. Without those, we would be operating in the mid range of our T&D margin profile of that 7% to 10.5%, so very comfortable that will happen. These just have a slight drag as these projects near completion.

但我認為這將繼續對我們的輸配電方面帶來一些利潤壓力。如果沒有這些，我們的 T&D 利潤率將處於 7% 至 10.5% 的中間範圍，因此我們對這種情況的發生感到非常滿意。隨著這些項目接近完成，這些只會產生輕微的阻力。

On the C&I side, we've said, if you look at it on a monthly basis, by the end of the second quarter, we'll be back to that 4% operating margin and hopefully have a trajectory above that going forward through the year. And that's really getting those problem projects that were kind of that pre-COVID awarded projects behind us. So we did have some margin degradation during the quarter on a couple of those projects, and then we had material come in on those projects that were low margin. So again, by the end of the second quarter, we see on a monthly basis that margin getting back to that kind of that low end of our margin profile for C&I.

在 C&I 方面，我們說過，如果按月來看，到第二季末，我們將恢復到 4% 的營業利潤率，並希望在未來一段時間內保持高於這一水平的軌跡。年。這確實讓那些問題項目成為了我們背後的新冠疫情之前的獲獎項目。因此，本季度我們的幾個項目的利潤率確實有所下降，然後我們在那些利潤率較低的項目上投入了材料。因此，到第二季末，我們看到按月計算的利潤率又回到了工商業利潤率的低端。

I'll stop there and let (technical difficulty) ask any other questions around it.

我就到此為止，讓（技術難度）圍繞它提出任何其他問題。

Yeah. No, that's helpful to think about the trajectory of the earnings for the year. It's those margins, I guess, staying kind of muted here in the first half on those. I guess, the second part of it would be on the top line. I'm just trying to think about the growth expectations for the year. If I go back to whatever your backlog was at the end of 2022, it was up 40%.

是的。不，這有助於思考今年的獲利軌跡。我想，正是這些利潤，在上半場保持了沉默。我想，第二部分應該在頂行。我只是想考慮一下今年的成長預期。如果我回顧一下 2022 年底你們的積壓情況，就會發現增加了 40%。

You grew this year, revenue up over 20%. Obviously, that's not a sustainable long-term growth rate. I think you've been pretty clear about what you can sustainably grow at. But with backlog flat now year over year going into 2024, just how to think about what you're thinking for the topline trends based on the awards you can have?

今年您實現了成長，收入成長了 20% 以上。顯然，這不是可持續的長期成長率。我認為你已經非常清楚自己可以在什麼方面持續成長。但隨著進入 2024 年積壓量逐年持平，如何根據您可以獲得的獎項來思考您對營收趨勢的看法？

I would still look at the high single-digit growth for the year, probably weighted a little more heavy towards the second half of the year. Very positive about what's being out there on the C&I side, I mean, as far as opportunities that Don talked about, Todd talked about opportunities on the transmission and distribution side.

我仍然會關註今年的高個位數成長，下半年的權重可能會更大一些。我對 C&I 方面的情況非常積極，我的意思是，就唐談到的機會而言，托德談到了輸電和配電方面的機會。

And then on the clean energy side, we're going to continue to be selective on what we take on. We've seen some people taking some low-margin work on that side, and we're willing to -- we like that market. We've got people that are well prepared to do that work, and we've got some very good projects. But again, we'll continue to be selective.

然後在清潔能源方面，我們將繼續有選擇性地採取行動。我們看到有些人在這方面從事一些低利潤的工作，我們願意——我們喜歡這個市場。我們有做好這項工作準備的人員，而且我們有一些非常好的專案。但同樣，我們將繼續進行選擇性。

And then, as I always say, in every quarter, backlog is always going to be lumpy. But when you look at the opportunities out there, I think everything in our script and what I see day to day, very active market still.

然後，正如我常說的，在每個季度，積壓的訂單總是會很不穩定。但當你看到那裡的機會時，我認為我們劇本中的一切以及我每天看到的市場仍然非常活躍。

Okay, great. I'll leave it at that. That's helpful for just kind of thinking about the modeling.

好的，太好了。我就這樣吧。這對於思考建模很有幫助。

Sangita Jain, KeyBanc Capital Markets.

Sangita Jain，KeyBanc 資本市場。

I was just wondering if you could share more color on the supply chain comments from your release in your prepared remarks and where those pinch points may be. I'm wondering if it's PMO still or if it's more of a balance of plants constrained in terms of switch gears and transformers maybe, if you could share any more color on that?

我只是想知道您是否可以在準備好的評論中分享您發布的供應鏈評論的更多內容以及這些關鍵點可能在哪裡。我想知道它是否仍然是 PMO，或者是否更多的是在開關設備和變壓器方面受到限制的工廠平衡，您是否可以分享更多關於這一點的信息？

I would say from the all time, I guess, slow side of the supply chain, it has improved. I mean, they're not getting any worse when you talk about transformers or equipment that way. Panels seem to be levelizing out on that supply. Again, we usually don't supply those, but they can affect the progress of our projects if the owners don't get them in time or they come in kind of lumpy type delivery. So with that, I think we're seeing an improvement on that side.

我想說，我想，從供應鏈的緩慢一側來看，它已經有所改善。我的意思是，當你這樣談論變壓器或設備時，它們並沒有變得更糟。面板供應似乎正在趨於平衡。同樣，我們通常不提供這些，但如果業主沒有及時收到它們或它們以塊狀交付的形式出現，它們可能會影響我們專案的進度。因此，我認為我們在這方面看到了進步。

We're not seeing anything worse. And in some cases, as we've talked about in previous quarters, our customers are releasing the material portion early now and equipment portions, so we can actually order that in advance of the projects and have it for on-time delivery for future work. So not all negative on that side, it has some impacts during this last quarter.

我們沒有看到更糟糕的情況。在某些情況下，正如我們在前幾個季度所討論的那樣，我們的客戶現在早些時候就釋放了材料部分和設備部分，因此我們實際上可以在項目開始之前訂購它們，並按時交付以供未來的工作。因此，這方面並非都是負面的，它在最後一個季度產生了一些影響。

Great. That's helpful. And if I can follow up with one on your comment on MSA renewals and new MSAs getting signed. I was just wondering if you're seeing any change of tone on the side of the utilities in terms of them facing their own regulatory headwinds and if they're rationalizing the scopes of the MSAs in any way.

偉大的。這很有幫助。如果我可以跟進您對 MSA 續訂和新 MSA 簽署的評論。我只是想知道公用事業公司在面臨自身監管阻力方面是否有任何語氣變化，以及他們是否以任何方式合理化 MSA 的範圍。

I think they're always looking at the MSAs. But as far as the amount of work we have and our conversations with them, very positive that that work's going to continue and those trends are going to continue. We haven't seen anybody pull back on anything.

我認為他們一直在關注 MSA。但就我們所做的工作量以及與他們的對話而言，我們非常積極地認為這項工作將持續下去，這些趨勢也將持續下去。我們沒有看到任何人在任何事情上退縮。

Todd, is there anything you want to add or any insight you want to give?

托德，您有什麼想要補充的內容或您想提供的見解嗎？

No, Rick, I think you covered it. The MSAs are really about utilities today trying to lock in resources to get their work done, and that continues. We're seeing more clients use this approach. So we've been excited, especially in 2023 with the several large coming up for renewal that we were able to renew. So more to come on that front. But we see more utilities shifting some of their work to the MSA model and staying out of the lump sum at this point, primarily due the resources.

不，里克，我想你已經涵蓋了。MSA 實際上是關於當今公用事業公司試圖鎖定資源以完成其工作，並且這種情況仍在繼續。我們看到越來越多的客戶使用這種方法。因此，我們很興奮，特別是在 2023 年，我們能夠續訂幾家即將續約的大型飯店。因此，這方面還有更多內容。但我們看到更多的公用事業公司將部分工作轉移到 MSA 模式，目前不參與一次性總付，這主要是由於資源的原因。

Great. That's very helpful.

偉大的。這非常有幫助。

Ati Modak, Goldman Sachs.

阿蒂·莫達克，高盛。

I just wanted to understand, you mentioned some capital allocation towards M&A, but wanted to dig into that a little bit and see if you can help us understand the nature of the opportunities you see across both segments or end markets. It seems like the competitive landscape is very fragmented on the T&D side in particular. And the market opportunity seems to have a lot of upside, so I'm wondering what your appetite is to make transformative transactions to increase your footprint? Or do you think it's more reasonable to focus on tuck in-type acquisitions?

我只是想了解，您提到了一些針對併購的資本配置，但想深入研究一下，看看您是否可以幫助我們了解您在兩個細分市場或終端市場中看到的機會的性質。競爭格局似乎非常分散，尤其是在輸配電領域。市場機會似乎有很大的上升空間，所以我想知道您對進行變革性交易以擴大足跡的興趣是什麼？或者您認為專注於塞入式收購更合理？

For us, I would say both. I mean, if you look at 2022, I mean, we had 20% growth roughly, 17% of that was organic. The rest was through acquisitions. If you look at last year, we had 20% growth roughly, and it was all organic. So I think we're always looking for acquisition opportunities.

對我們來說，我會說兩者。我的意思是，如果你看看 2022 年，我們的成長大約是 20%，其中 17% 是有機成長。其餘的都是透過收購。如果你看看去年，我們的成長大約是 20%，而且都是有機的。所以我認為我們一直在尋找收購機會。

But again, we're always going to be patient on that side. And I think we've shown we can organically grow our business on top of doing acquisitions if they make sense.

但同樣，我們在這方面始終保持耐心。我認為我們已經證明，如果收購有意義的話，我們可以在收購的基礎上有機地發展我們的業務。

And then on the clean energy side, you said you mentioned you would be selective, but wondering if you can talk about the nature of the projects that you're looking at today, the customer base, the size of the projects, and what we should think of as we model our numbers for 2024?

然後在清潔能源方面，您提到您會有所選擇，但想知道您是否可以談談您今天正在考慮的項目的性質、客戶群、項目的規模以及我們的目標當我們為2024 年的數字構建模時該考慮什麼？

Yeah, for us, I think it's just being selective again as we go forward. It's not that that business is 40% of our overall business when we look at the clean energy market, but it's growing every day. And we'll continue to pursue the right opportunities and the ones that make sense. But we do have a margin profile that we want to meet.

是的，對我們來說，我認為這只是在我們前進的過程中再次做出選擇。當我們觀察清潔能源市場時，並不是說該業務占我們整體業務的 40%，但它每天都在成長。我們將繼續尋求正確的和有意義的機會。但我們確實有一個我們希望達到的利潤率。

And as we've said before, this year, we really want to focus on -- but we don't mind growing our top line, and we still see it coming in that higher single digit. We're really going to focus on that bottomline growth, and this all takes that into account. We want to make sure that the work we're doing and we take on is profitable going forward.

正如我們之前所說，今年，我們確實希望專注於——但我們不介意增加我們的收入，而且我們仍然看到它將達到更高的個位數。我們確實會關注底線成長，這一切都考慮到了這一點。我們希望確保我們正在做和承擔的工作未來能夠獲利。

Got it. I'll turn it over.

知道了。我會把它翻過來。

Brian Brophy, Stifel.

布萊恩·布羅菲，斯蒂菲爾。

I just wanted to ask about the high single-digit growth that you mentioned, I think that's overall for 2024 on the top line. Is there anything specific to call out as it relates to T&D versus C&I? Or should we expect high single-digit growth across both of them?

我只是想問您提到的高個位數成長，我認為這是 2024 年整體收入成長的情況。對於 T&D 與 C&I 而言，有什麼需要特別指出的嗎？或者我們應該期望兩者都實現高個位數成長？

Right now, I would anticipate it across both segments, I mean, barring something project coming in on one side or the other. I mean, we do clean energy on both sides, so that's an example where one could come into T&D (technical difficulty) really doesn't matter where that comes into us on on that side of the business.

現在，我預計這兩個領域都會出現這種情況，我的意思是，除非有項目出現在一側或另一側。我的意思是，我們雙方都從事清潔能源業務，所以這是一個可能涉及 T&D（技術難度）的例子，這與我們業務的哪一方遇到的問題無關緊要。

But I think you heard the opportunities from both Tod and Don, and those are very strong and, again, very lumpy on the award. So it's always going to be lumpy, and it always has, but when we look at the amount of activity out there, very positive about the amount of work that's out there.

但我認為你從托德和唐那裡聽到了機會，這些機會非常強大，但同樣，在獎項方面也非常不穩定。所以它總是會很不穩定，而且總是如此，但是當我們看到那裡的活動量時，我們對那裡的工作量非常樂觀。

Okay. Got it. And then we've heard from some others that transmission may outgrow distribution here in 2024, just given some of the strength on the clean energy side, need to interconnect with data centers, things of that nature. Curious of what you guys are seeing here? Any thoughts on whether transmission and distribution may outgrow this year?

好的。知道了。然後我們從其他一些人那裡聽說，考慮到清潔能源方面的一些實力，到 2024 年，輸電可能會超過配電，需要與資料中心互連，諸如此類。好奇你們在這裡看到了什麼嗎？今年輸電和配電是否會成長有何想法？

I don't have any any signs that one is going to outgrow the other one. I think for us, it's where our customers are spending their money during a given quarter or a couple of given quarters. So it's the type of projects we do. We have MSAs on transmission and distribution for many of our clients, so I don't really care where it comes from. The margin profiles are almost identical. So for us, we're not not picky. And we haven't heard our customers saying they're spending more towards distribution and transmission to date.

我沒有任何跡象表明其中一個會超越另一個。我認為對我們來說，這是我們的客戶在特定季度或幾個特定季度內花錢的地方。這就是我們所做的項目類型。我們為許多客戶提供了傳輸和分配的 MSA，所以我並不關心它來自哪裡。邊緣輪廓幾乎相同。所以對我們來說，我們並不是不挑剔。到目前為止，我們還沒有聽到我們的客戶說他們在分銷和傳輸方面花費更多。

Okay. I will pass it on.

好的。我會把它傳遞下去。

(technical difficulty) with Sidoti.

（技術難度）與Sidoti。

Just to follow up on the transmission and distribution question, we're hearing a lot from utilities about new accelerating resiliency programs which, generally speaking, get good regulatory support, and I was just wondering if you're seeing that in terms of maybe your MSA agreements or something outside of that.

為了跟進輸電和配電問題，我們從公用事業公司那裡聽到了很多關於新的加速彈性計劃的信息，一般來說，這些計劃得到了良好的監管支持，我只是想知道您是否從您的角度看待這一點MSA 協議或其他協議之外的協議。

Yeah, absolutely. That has been an ongoing trend for probably the last four or five years where they've started to accelerate that. And if you think about it, there were some supply chain impacts during COVID and thereafter with some of the equipment associated with it. So we are seeing it come back in a little stronger period. Right now, we're seeing more focus on that throughout all of our MSAs. As Rick mentioned, we do for distribution work across the US and even in Canada.

是的，絕對是。在過去的四、五年裡，這一直是一個持續的趨勢，他們已經開始加速這一趨勢。如果你想一想，在新冠疫情期間以及此後的一些與之相關的設備中，供應鏈受到了一些影響。所以我們看到它在一個更強勁的時期回歸。目前，我們發現所有 MSA 都更加關注這一點。正如里克所提到的，我們在美國甚至加拿大從事分銷工作。

Okay, great. And then just to follow up on. I think last quarter you made mention that you were you actively positioning to bid on some of these high-voltage, multibillion dollar transmission projects in MISO, but there's also a lot of planning basically all over the country; California, as far as the MISO, SPP, PJM, and I was just wondering what stage of the development on your side are we at for some of these projects that may start construction by 2026 and come online in 2028 to 2030?

好的，太好了。然後只是跟進。我認為上個季度您提到您正在積極準備競標 MISO 的一些高壓、數十億美元的輸電項目，但基本上全國各地也有很多規劃；加州，就 MISO、SPP、PJM 而言，我只是想知道你們這邊的一些項目目前處於哪個開發階段，這些項目可能會在 2026 年開始建設，並在 2028 年至 2030 年上線？

Yeah. I think a year ago, we were talking about these things were starting to hit the streets and coming out for bid. And today they're still in various stages, but they have advanced, some of them, to the award stage. And we're seeing a lot of activity, both bidding and projects being awarded and negotiated at the present time.

是的。我想一年前，我們正在談論這些東西開始走上街頭並競標。今天他們仍然處於不同的階段，但他們中的一些人已經進入了頒獎階段。我們看到目前有很多活動，包括招標和項目的授予和​​談判。

Okay. Great. Then on C&I, obviously, you guys are very diversified in terms of end markets, but are there any -- could you maybe point to maybe top one or two markets that are driving growth more than others. And then maybe talk about some more longer term emerging end markets, whether it's manufacturing, reshoring, and then maybe even more importantly electric vehicle infrastructure as it pertains to your utility customers?

好的。偉大的。然後，在 C&I 方面，顯然，你們在終端市場方面非常多元化，但有沒有——你能否指出比其他市場更能推動成長的一兩個市場。然後也許可以談談一些更長期的新興終端市場，無論是製造、回流，還是更重要的電動車基礎設施，因為它與您的公用事業客戶有關？

Yeah, I can take that. I would answer that as, depends on the geographic area as far as the end markets are concerned. Data center obviously is a big trend, and we've been talking about that for a couple of quarters. There's obviously parts of the country that are more prone to take on data center opportunities than others. So that's a big focus for ours.

是的，我可以接受。我的回答是，就終端市場而言，取決於地理區域。資料中心顯然是一個大趨勢，我們已經討論了幾個季度。顯然，該國某些地區比其他地區更容易抓住資料中心的機會。所以這是我們的重點。

As far as the EV charging, there's lots of information in the news about EV infrastructure, about EV cars. We're still in the, I think, the design of what that's going to look like long term. We're still doing a fair amount of that work now and still monitoring what the progress looks like going forward?

就電動車充電而言，新聞中有很多有關電動車基礎設施和電動車的資訊。我認為，我們仍在設計長期的外觀。我們現在仍在做相當多的工作，並且仍在監控未來的進展？

Yeah, I would say the other market that's out there and on the transportation front is some of the light rail stuff out there. That's a growing market in some areas. That's something that we've been good at in certain geographic locations. So we see that continuing to grow. Healthcare continues strong, and then kind of that manufacturing side. I would take all those kinds of -- along with data centers as kind of the top-tier stuff we're doing.

是的，我想說交通方面的另一個市場是輕軌。在某些地區這是一個不斷成長的市場。這是我們在某些​​地理位置擅長的事。所以我們看到這一點在持續成長。醫療保健繼續強勁，然後是製造業。我會將所有這些類型以及資料中心視為我們正在做的頂級工作。

Back to the electrical vehicle side, I think we've always said that was going to be a slower build than what was anticipated. We see it as a great long-term business. But the US, 50% of the vehicles in my opinion are going to be electric vehicles by 2027. I think it's going to be a lesser amount than that. So the infrastructure is going to continue to build out but probably at a manageable pace.

回到電動車方面，我想我們一直說這將比預期的要慢。我們認為這是一項偉大的長期業務。但在美國，我認為到 2027 年 50% 的車輛將是電動車。我認為金額會比這個少。因此，基礎設施將繼續建設，但可能會以可控的速度建設。

All right. Great. And then just lastly, any thoughts on the first-quarter impact to weather? I know you guys do emergency storm restoration work, but it also sometimes displace other projects you might be working on that might even just get delayed due to weather. Just wondering what your thoughts were given the well-below normal temperatures we saw throughout the country.

好的。偉大的。最後，您對第一季對天氣的影響有什麼想法嗎？我知道你們正在進行緊急風暴恢復工作，但有時它也會取代你們可能正在進行的其他項目，甚至可能會因天氣而推遲。只是想知道您對我們在全國各地看到的遠低於正常氣溫的情況有何看法。

Yeah. I think to date there hasn't been big storm calls. We don't have a lot of people out on storm. We have had some geographic areas. I mean, if you look at it individually that had some weather impacts, so we continue to have that. But we've had some that are better than anticipated. So I don't want you to think that the weather is bad everywhere. It's really how does it affect the given projects.

是的。我認為迄今為止還沒有發生過大的風暴呼叫。我們沒有很多人在風暴中。我們有一些地理區域。我的意思是，如果你單獨看它會產生一些天氣影響，所以我們仍然會受到影響。但我們已經得到了一些比預期更好的結果。所以我不想讓你認為到處的天氣都很糟。這實際上是它如何影響給定的項目。

And I think we've talked before on calls, you've got two projects that are 50 miles apart. One has extremely bad weather, and the other one has normal weather. So it can really vary. But again, to date, we're not going to -- We haven't seen big storm revenue.

我想我們之前在電話中談過，你有兩個相距 50 英里的項目。一種是極端惡劣的天氣，另一種是正常的天氣。所以它確實可能有所不同。但到目前為止，我們還沒有看到大風暴收入。

Okay, great.

好的，太好了。

Jon Braatz, KCCA.

喬恩‧布拉茨 (Jon Braatz)，KCCA。

Rick, a question for maybe you and Kelly. Obviously, the outlook is very positive, a lot of opportunities ahead. But over the last couple of years, maybe your SG&A expenses have moderated a little bit, the growth in the SG&A expenses have moderated. Do you see that continuing, or do you think that you may have to reaccelerate some of those expenses as we go forward?

瑞克，也許有個問題想問你和凱利。顯然，前景非常樂觀，未來有很多機會。但在過去幾年中，也許您的 SG&A 支出有所放緩，SG&A 支出的成長有所放緩。您是否認為這種情況會持續下去，或者您是否認為隨著我們的進展，您可能必須重新加速其中一些支出？

Yeah. Thanks for that question. If you look, we did have, I think, near-record-low SG&A expense as a percentage of revenue in the fourth quarter, and that benefited from the very strong revenue we saw in the higher materials in the quarter. So I think, certainly our goal is to grow our SG&A expense at a slower rate than our revenue growth.

是的。謝謝你提出這個問題。如果你仔細觀察，我認為我們第四季度的銷售、管理及行政費用佔收入的比例確實接近歷史最低水平，這得益於我們在本季度看到的較高材料的強勁收入。所以我認為，我們的目標當然是以低於收入成長的速度成長我們的銷售管理費用。

And we've been doing a good job of that the last several quarters that I don't think I would look at fourth quarter as the new assumption for that. I'd look over a little bit longer trend line that like maybe 12 to 18 months because, like you said, recognizing we're growing business that we want to make sure we're investing in our workforce and technology, really just continuing to mature our capabilities to go after the great organic growth that's out there.

過去幾季我們在這方面做得很好，我認為我不會將第四季度視為新的假設。我會關注更長一點的趨勢線，例如 12 到 18 個月，因為，就像你說的，我們認識到我們正在發展業務，我們希望確保我們對勞動力和技術進行投資，實際上只是繼續成熟我們的能力，以追求巨大的有機成長。

Okay. And Kelly, one other question. You mentioned the higher interest costs in the quarter and higher interest rates and so on. At the end of the quarter, your borrowings look sharply lower than at the end of the third quarter. Did you repay some debt at year end that might account for the lower borrowings at year end?

好的。凱利，還有一個問題。您提到了本季較高的利息成本和較高的利率等等。在本季末，您的借款看起來比第三季末大幅下降。您是否在年底償還了一些債務，這可能是導致年底借款減少的原因？

Yes, that's a good way to look at it. We did see some stronger cash flow towards the end of the quarter that allowed us to pay down some more debt at the end of the quarter. But when we're talking about a pretty low level of debt to begin with, it doesn't take much of a fluctuation in the amount. And certainly, rates year over year are quite a bit higher.

是的，這是一個很好的看待它的方式。我們確實在本季末看到了一些更強勁的現金流，這使我們能夠在本季末償還更多債務。但當我們一開始就談論相當低的債務水平時，金額不需要太大波動。當然，利率同比要高得多。

So it ends up being almost a rounding error as these are pretty small numbers and something we continue to stay focused on and make sure we're driving operating cash flow and trying to keep the debt levels low in anticipation of continuing to support the business and the organic growth.

因此，這最終幾乎是一個舍入誤差，因為這些數字相當小，我們將繼續關注這一點，並確保我們正在推動營運現金流，並努力將債務水平保持在較低水平，以繼續支持業務和有機增長。

Okay. All right.

好的。好的。

I'm showing no further questions at this time. I would now like to turn the call back to Rick Swartz for closing remarks.

我目前沒有提出任何進一步的問題。現在，我想將電話轉回給里克·斯沃茨 (Rick Swartz)，讓其致閉幕詞。

To conclude, on behalf of Kelly, Todd, Dan, and myself, I sincerely thank you for joining us on the call today. I don't have anything further, and we look forward to working with you going forward and speaking with you again on our next conference call. Until then, stay safe.

最後，我代表凱利、陶德、丹和我本人，衷心感謝您今天加入我們的電話會議。我沒有任何進一步的信息，我們期待與您繼續合作，並在下次電話會議上再次與您交談。在那之前，請保持安全。

Thank you. This does conclude the program. You may now disconnect.

謝謝。這確實結束了該程式。您現在可以斷開連線。