(PGTI) 2022 Q2 法說會逐字稿

Good morning, and welcome to PGT Innovations' Second Quarter 2022 Earnings Conference Call. (Operator Instructions) Today's call is being recorded.

早上好，歡迎來到 PGT Innovations 的 2022 年第二季度收益電話會議。 （接線員說明）今天的電話正在錄音中。

I'd now like to turn the conference over to PGT Innovations' Senior Vice President of Corporate Development and Treasurer, Brad West. Please go ahead.

我現在想將會議轉交給 PGT Innovations 的企業發展高級副總裁兼財務主管 Brad West。請繼續。

Thank you. Good morning, and welcome to the PGT Innovations' second quarter 2022 investor conference call. With me on the call today are President and CEO, Jeff Jackson; and our Chief Financial Officer, John Kunz. On the Investors section of our company website, you will find the earnings press release issued earlier today as well as the slide presentation we have posted to accompany today's discussion. This webcast is being recorded and will be available for replay on the company's website.

謝謝你。早上好，歡迎來到 PGT Innovations 2022 年第二季度投資者電話會議。今天和我一起打電話的是總裁兼首席執行官傑夫傑克遜；以及我們的首席財務官 John Kunz。在我們公司網站的投資者部分，您會找到今天早些時候發布的收益新聞稿以及我們為配合今天的討論而發布的幻燈片演示。該網絡廣播正在錄製中，可在公司網站上重播。

Before we begin our prepared remarks, please direct your attention to the disclosure statement on Slide 2 of the presentation as well as the disclaimers included in the earnings press release and our SEC filings that discuss forward-looking statements. Today's remarks contain forward-looking statements, including statements about our 2022 financial performance outlook. Those statements involve risks, uncertainties and other factors that could cause actual results to differ materially. Additional information on factors that could cause actual results to differ from expected results is available on the company's most recent SEC filings.

在我們開始準備好的評論之前，請注意演示文稿幻燈片 2 中的披露聲明以及收益新聞稿中包含的免責聲明以及我們在美國證券交易委員會提交的討論前瞻性聲明的文件。今天的評論包含前瞻性陳述，包括關於我們 2022 年財務業績展望的陳述。這些陳述涉及風險、不確定性和其他可能導致實際結果大不相同的因素。有關可能導致實際結果與預期結果不同的因素的更多信息，請參閱公司最近提交給美國證券交易委員會的文件。

Additionally, on Slide 3, note that we report results using non-GAAP financial measures, which we believe provide additional information to help investors compare performance between reporting periods. Our reconciliation to the most directly comparable GAAP measures is included in the tables attached to the earnings release and the slide presentation appendix.

此外，請注意，在幻燈片 3 中，我們使用非 GAAP 財務指標報告結果，我們認為這些指標提供了額外信息，可幫助投資者比較報告期之間的業績。我們與最直接可比的 GAAP 措施的對賬包含在收益發布和幻燈片演示附錄的表格中。

At this time, I'll now hand over the call to our company's CEO and President, Jeff Jackson.

現在，我將把電話轉交給我們公司的首席執行官兼總裁傑夫傑克遜。

Thank you, Brad, and good morning, everyone, and thank you for joining us on today's call. Our very strong financial results was a testament to PGT Innovations' value proposition and our team's ability to execute on a number of challenges over the past 12 months. These challenges included labor, capacity and supply chain constraints. However, we stayed focused on executing our long-term strategy of adding talent, effectively scaling our operations and investing our cash flow in growing markets.

謝謝布拉德，大家早上好，感謝您參加今天的電話會議。我們非常強勁的財務業績證明了 PGT Innovations 的價值主張以及我們團隊在過去 12 個月中應對許多挑戰的能力。這些挑戰包括勞動力、產能和供應鏈限制。然而，我們仍然專注於執行我們的長期戰略，即增加人才、有效擴展我們的業務並將我們的現金流投資於不斷增長的市場。

Let's discuss today's key messages for the quarter on Slide 4. We achieved record second quarter results as revenues of $407 million surpassed both prior year and our internal forecast. Multiple drivers during the quarter led to these results. First, our expanded footprint placed us in growing markets. Second, our marketing strategy drove continued customer awareness of our product offerings.

讓我們在幻燈片 4 上討論今天本季度的關鍵信息。我們實現了創紀錄的第二季度業績，4.07 億美元的收入超過了去年和我們的內部預測。本季度的多個驅動因素導致了這些結果。首先，我們擴大的足跡使我們進入了不斷增長的市場。其次，我們的營銷策略推動了客戶對我們產品的持續認知。

Third, our ability to secure materials through our supply chain kept the factories operating efficiently. And fourth, our ongoing efforts to increase capacity through process automation as well as further training of our team members has improved our operational efficiency, allowing us to ship higher product volumes. I'm very proud of how our PGT Innovations team continues to improve, deliver strong growth and provide first-class customer service each and every day.

第三，我們通過供應鏈獲得材料的能力使工廠保持高效運轉。第四，我們通過過程自動化以及對團隊成員的進一步培訓不斷努力提高產能，提高了我們的運營效率，使我們能夠出貨更多的產品。我為我們的 PGT Innovations 團隊每天如何不斷改進、實現強勁增長並提供一流的客戶服務感到非常自豪。

We continue to make significant gains in margin with adjusted EBITDA margin improving 680 basis points compared to the second quarter of 2021 and sequentially by 280 basis points versus the first quarter of 2022. These results reflect the success of our business model to grow our top line and improve our operational performance, while managing inflationary pressures. Pricing actions implemented over the last several quarters have offset the majority of the inflationary pressures we have experienced. In addition, we have announced new price increases to offset the escalating costs we continue to face.

與 2021 年第二季度相比，調整後的 EBITDA 利潤率提高了 680 個基點，與 2022 年第一季度相比連續提高了 280 個基點，我們的利潤率繼續取得顯著增長。這些結果反映了我們的商業模式成功地增加了我們的收入並改善我們的運營績效，同時管理通貨膨脹壓力。過去幾個季度實施的定價行動抵消了我們經歷的大部分通脹壓力。此外，我們還宣布了新的價格上漲，以抵消我們繼續面臨的不斷上漲的成本。

Since the beginning of the year, our gains in operational efficiencies have reduced our lead times. This continued into Q2 with average lead times for key brands improving 40% to 50% versus prior year quarter. We also worked to control cost whenever possible through a constant focus on investing, quality and manufacturing process enhancements. Additionally, our supply chain team has continued to do an outstanding job to minimize disruption, allowing us to support higher production levels, a driving force behind our improved performance over the past few quarters. These factors contributed to our strong cash flow in the quarter and allowed us to end Q2 with a cash balance of $159 million and leverage well within our targeted range.

自今年年初以來，我們在運營效率方面的進步縮短了我們的交貨時間。這種情況一直持續到第二季度，主要品牌的平均交貨時間比去年同期提高了 40% 到 50%。我們還通過持續關注投資、質量和製造流程改進來盡可能控製成本。此外，我們的供應鏈團隊繼續出色地減少中斷，使我們能夠支持更高的生產水平，這是我們過去幾個季度業績改善的推動力。這些因素促成了我們本季度強勁的現金流，並使我們在第二季度末的現金餘額為 1.59 億美元，槓桿率也很好地處於我們的目標範圍內。

John will provide more detail, but in summary, our balance sheet strength provides the flexibility necessary to effectively allocate capital by continuing to execute our business model as we look to drive long-term shareholder value through reinvestment in our business and strategic accretive acquisitions. As the first half results well exceeded our expectations and the sales and margin trends remain favorable, we are raising our full year guidance for revenue and adjusted EBITDA. While we recognize the uncertainties surrounding the macroeconomic environment, our backlog, manufacturing execution and margin performance gives us a high level of confidence in our revised guidance.

約翰將提供更多細節，但總而言之，我們的資產負債表實力提供了必要的靈活性，可以通過繼續執行我們的業務模式來有效分配資本，因為我們希望通過對業務的再投資和戰略性增值收購來推動長期股東價值。由於上半年業績大大超出我們的預期，並且銷售和利潤率趨勢保持良好，我們提高了全年收入和調整後 EBITDA 的指導。雖然我們認識到宏觀經濟環境的不確定性，但我們的積壓訂單、製造執行和利潤率表現讓我們對修訂後的指引充滿信心。

Next, on Slide 5, let's take a closer look at sales trends. Total organic growth was 29%, reflecting the strength of our brand portfolio and demand in our markets. In our Southeast region, organic sales for the quarter grew 27% versus the prior year quarter, reflecting strength in our core PGT and NewSouth brands. The migration into Florida, our largest market, will continue to support demand in the coming years. The challenging market dynamics has led one of our larger competitors in the Southeast region to discontinue their aluminum product lines, allowing us to pick up market share. In addition, during the first half of the year, we signed 5 separate large homebuilders to 3-year supply agreements, which further strengthens our view on near-term and long-term outlook.

接下來，在幻燈片 5 中，讓我們仔細看看銷售趨勢。總有機增長率為 29%，反映了我們品牌組合的實力和市場需求。在我們的東南地區，本季度的有機銷售額比去年同期增長了 27%，反映了我們核心 PGT 和 NewSouth 品牌的實力。向我們最大的市場佛羅里達州的遷移將在未來幾年繼續支持需求。充滿挑戰的市場動態導致我們在東南地區的一個較大的競爭對手停止了他們的鋁產品線，使我們能夠獲得市場份額。此外，今年上半年，我們與 5 家獨立的大型房屋建築商簽訂了為期 3 年的供應協議，這進一步強化了我們對近期和長期前景的看法。

In our Western region, organic growth was 41% versus the prior year quarter, reflecting strength from our production builder business. This sector has outperformed for the past 2 years as demand to upgrade indoor/outdoor living areas remained strong. We're also seeing the benefit from our capacity expansion in Phoenix, which has allowed us to better serve the custom market demands and our recently opened showroom in San Diego will position us well to serve the growth we are seeing in the Southern California's home and renovation markets.

在我們的西部地區，與去年同期相比有機增長 41%，反映了我們的生產製造商業務的實力。由於升級室內/室外生活區的需求依然強勁，該行業在過去 2 年表現出色。我們還看到了我們在鳳凰城的產能擴張帶來的好處，這使我們能夠更好地滿足定制市場需求，而我們最近在聖地亞哥開設的陳列室將使我們能夠很好地服務於我們在南加州的家中看到的增長和裝修市場。

NewSouth continues to perform very well with sales growth of 41% that benefitted from 3 stores opening in 2021. We're in various stages of opening new stores in Atlanta, Dallas, Fort Worth and San Antonio for a total of 17 new stores at the end of the year. Our Dallas and Fort Worth stores have signed leases and those store operators are busy training their new team members in anticipation of opening. Our Atlanta store is celebrating its official ribbon-cutting on August 3. In the Florida region, we saw strong sequential order growth, up 13% versus Q1 of 2022. Our PGT and NewSouth brands drove this growth, which was balanced across both new construction and repair and remodeling.

NewSouth 繼續表現出色，銷售額增長 41%，這得益於 2021 年開設的 3 家門店。我們正處於在亞特蘭大、達拉斯、沃思堡和聖安東尼奧開設新店的不同階段，總共有 17 家新店年底。我們的達拉斯和沃思堡商店已經簽署了租約，這些商店經營者正在忙於培訓他們的新團隊成員以迎接開業。我們的亞特蘭大商店將於 8 月 3 日慶祝其官方剪彩。在佛羅里達地區，我們看到訂單連續強勁增長，比 2022 年第一季度增長 13%。我們的 PGT 和 NewSouth 品牌推動了這一增長，這在兩個新建築中是平衡的以及維修和改造。

As we shared last quarter, our Governor recently signed a home hardening bill to make impact windows and doors more affordable by granting a 2-year sales tax exemption for Floridians. Our focus on improving manufacturing performance and customer service has allowed us to decrease our average lead times and improve our on-time and in-full metrics to meet continued strong demand. As a result, our backlog was $359 million at the end of Q2, up slightly from $356 million at the start of the year.

正如我們在上個季度分享的那樣，我們的州長最近簽署了一項家庭硬化法案，通過為佛羅里達人提供 2 年的銷售稅豁免，使抗衝擊門窗更實惠。我們專注於提高製造績效和客戶服務，這使我們能夠縮短平均交貨時間並提高我們的準時率和完工率指標，以滿足持續強勁的需求。因此，我們在第二季度末的積壓訂單為 3.59 億美元，略高於年初的 3.56 億美元。

Slide 6 summarizes our strategic and operational framework that drives profitable growth by delivering best-in-class products and services to our customers, while creating a goal-oriented environment for our team members. Our first pillar is customer-centric innovation, which drives us to deliver products with features, performance and value demanded by our builders and our customers. We're expanding our product offerings to improve thermal performance and improved site lines, delivering improved energy efficiency and improving indoor/outdoor living spaces.

幻燈片 6 總結了我們的戰略和運營框架，該框架通過向我們的客戶提供一流的產品和服務來推動盈利增長，同時為我們的團隊成員創造一個以目標為導向的環境。我們的第一個支柱是以客戶為中心的創新，這促使我們提供具有我們的製造商和客戶所需的特性、性能和價值的產品。我們正在擴大我們的產品範圍，以提高熱性能和改善場地線路，提高能源效率並改善室內/室外生活空間。

Our second pillar is investing in talent. Over the last year, we have been incredibly successful at growing our talent base with high-quality team members who help us achieve our growth targets. Our third pillar is transforming our manufacturing operations to scale in line with our growth. Our operational flexibility and tenacity have well positioned us to focus on improving our manufacturing processes to reduce or prevent backorders and maintain efficient warehousing operations.

我們的第二個支柱是投資於人才。在過去的一年裡，我們在發展人才基礎方面取得了令人難以置信的成功，高素質的團隊成員幫助我們實現了增長目標。我們的第三個支柱是轉變我們的製造業務，以適應我們的增長。我們的運營靈活性和韌性使我們能夠專注於改進我們的製造流程，以減少或防止延期交貨並保持高效的倉儲運營。

Our fourth pillar is allocating our strong free cash flow to achieve profitable growth. As we seek to generate long-term value creation for our shareholders, we are always on the lookout for organic and inorganic opportunities to improve our product offerings and production capabilities. That being said, as we navigate this inflationary environment, disciplined capital deployment will remain a top priority as we look for accretive opportunities to grow our business while delivering above-market results.

我們的第四個支柱是分配我們強大的自由現金流以實現盈利增長。在我們尋求為股東創造長期價值的過程中，我們一直在尋找有機和無機機會來改善我們的產品供應和生產能力。話雖這麼說，在我們應對這種通貨膨脹環境時，在我們尋找增長機會以發展我們的業務同時提供高於市場的業績時，紀律嚴明的資本部署仍將是重中之重。

Now, I'd like to turn the call over to John to review our second quarter results in greater detail. John?

現在，我想把電話轉給約翰，讓他更詳細地回顧我們第二季度的業績。約翰？

Thank you, Jeff. Turning to Slide 7, today, we are very pleased to report $407 million in revenue for the second quarter, a 42% increase over the prior year quarter. This increase was driven by a 29% organic growth from our legacy businesses, including NewSouth and Eco, and continued growth from our recent Anlin acquisition.

謝謝你，傑夫。轉到幻燈片 7，今天，我們非常高興地報告第二季度的收入為 4.07 億美元，比去年同期增長 42%。這一增長是由我們的傳統業務（包括 NewSouth 和 Eco）實現 29% 的有機增長，以及我們最近對安林的收購帶來的持續增長所推動的。

As Jeff mentioned, we were able to deliver strong growth again this quarter through increased volumes, previously implemented pricing actions and process improvements, which have proven successful in offsetting rising costs in a volatile operating environment. In the second quarter, our sales breakdown was 57% R&R and 43% new construction. Organic R&R sales grew 28% compared to the second quarter of 2021 and organic new construction sales increased 40% due to the strength of our legacy brands.

正如 Jeff 提到的那樣，本季度我們能夠通過增加銷量、之前實施的定價行動和流程改進再次實現強勁增長，這些措施已被證明在動蕩的運營環境中成功地抵消了不斷上升的成本。第二季度，我們的銷售額細分為 57% 的 R&R 和 43% 的新建築。由於我們傳統品牌的實力，與 2021 年第二季度相比，有機 R&R 銷售額增長了 28%，有機新建築銷售額增長了 40%。

Gross profit for the second quarter was $165.1 million, a 70% increase from the prior year quarter, reflecting increased volume and pricing, partially offset by labor and material cost headwinds. Our strong Q2 results were driven by operational improvement in the Southeast, including double-digit unit growth, improvements in scrap and improved labor efficiency. Aluminum availability has improved and LME spot pricing has steadily decreased, in fact, resulting from speculation surrounding the geopolitical tensions between Russia and Ukraine have been minimal, although we continue to monitor market price as well as the primary and secondary market production condition.

第二季度的毛利潤為 1.651 億美元，比去年同期增長 70%，反映出銷量和定價的增長，部分被勞動力和材料成本的不利因素所抵消。我們強勁的第二季度業績是由東南部的運營改善推動的，包括兩位數的單位增長、廢品率的改善和勞動效率的提高。鋁供應有所改善，LME 現貨價格穩步下降，事實上，圍繞俄羅斯和烏克蘭之間地緣政治緊張局勢的猜測很少，儘管我們繼續監測市場價格以及一級和二級市場生產狀況。

Second quarter gross margin was 40.6%, 660 basis points higher than the prior year quarter and 310 basis points higher than the first quarter of 2022, driven by price increases, manufacturing process improvements and unit growth. Earlier investments in hiring helped improve operational efficiencies across the portfolio. We believe those actions will continue to benefit our gross margins for the foreseeable future.

第二季度毛利率為 40.6%，比去年同期高 660 個基點，比 2022 年第一季度高 310 個基點，這主要受價格上漲、製造工藝改進和單位增長的推動。早期在招聘方面的投資有助於提高整個投資組合的運營效率。我們相信，在可預見的未來，這些行動將繼續有利於我們的毛利率。

Selling, general and administrative expenses increased 45% in the second quarter compared to the prior year, driven by the SG&A from our recent acquisitions, the expansion of our NewSouth operations, increased distribution cost, increased marketing spend and an increase in reserve for uncollectible accounts. Second quarter adjusted selling, general and administrative expenses were 25.7% or 80 basis points lower than the prior year quarter. Leverage from higher sales was partially offset by increased labor and transportation inflation, increased marketing spend and an increase in our reserve for uncollectible accounts.

第二季度的銷售、一般和管理費用比上年同期增長 45%，這是由於我們最近收購的 SG&A、我們 NewSouth 業務的擴張、分銷成本增加、營銷支出增加以及壞賬準備金增加所致.第二季度調整後的銷售、一般和管理費用比去年同期低 25.7% 或 80 個基點。更高銷售額的槓桿作用被勞動力和運輸通脹增加、營銷支出增加以及我們的壞賬準備金增加部分抵消。

Adjusted EBITDA was $78.3 million, 119% higher than the prior year quarter, resulting from pricing actions to offset inflationary pressures, increased volumes and improved manufacturing performance. You will recall that our prior-year quarter was significantly impacted by a drag from our expansion related to spending due to a loss in productivity from new hires.

調整後的 EBITDA 為 7830 萬美元，比去年同期增長 119%，這是由於採取定價措施抵消通脹壓力、銷量增加和製造業績改善所致。您會記得，由於新員工生產力下降，我們與支出相關的擴張拖累了我們去年同期的重大影響。

Our tax expense in the quarter came in at 24.8%, in line with our expectations. We reported adjusted net income of $40.5 million or $0.67 per diluted share compared to $10.7 million or $0.18 per diluted share in the second quarter of 2021, increases of 278% and 272% respectively.

我們本季度的稅收支出為 24.8%，符合我們的預期。我們報告調整後淨收入為 4050 萬美元或攤薄後每股收益 0.67 美元，而 2021 年第二季度為 1070 萬美元或攤薄後每股收益 0.18 美元，分別增長 278% 和 272%。

Now turning to our balance sheet on Slide 8. We ended the quarter with net debt of $476 million. We had total liquidity of $233 million, including a cash balance of 159 and $74 million of unused capacity on our revolver. Our trailing 12-month run rate net debt to adjusted EBITDA was approximately 2.1x at the end of the quarter.

現在轉到幻燈片 8 上的資產負債表。本季度末我們的淨債務為 4.76 億美元。我們的流動資金總額為 2.33 億美元，其中包括 159 美元的現金餘額和 7400 萬美元的左輪手槍未使用容量。本季度末，我們過去 12 個月的運行率淨債務與調整後的 EBITDA 之比約為 2.1 倍。

Slide 9 shows that we have grown EBITDA both through acquisitions and organically, while maintaining a conservative leverage profile. Our historically conservative financial policies have allowed us to use our strong cash flows to reduce leverage after significant acquisitions. In fact, since the completion of our Anlin acquisition, we have reduced our covenant-adjusted leverage metric from approximately 2.9x to 2.0x, placing us at the lower end of our leverage target range of 2 to 3x.

幻燈片 9 顯示我們通過收購和有機增長了 EBITDA，同時保持了保守的槓桿率。我們歷來保守的財務政策使我們能夠在重大收購後利用強勁的現金流來降低杠桿率。事實上，自完成對安林的收購以來，我們已將契約調整後的槓桿率指標從約 2.9 倍降至 2.0 倍，使我們處於 2 至 3 倍槓桿目標範圍的下限。

On Slide 10, we've summarized our long-term capital allocation priorities. Our first priority is to reinvest in our business, which includes allocating capital to projects that we expect will drive margin and revenue growth. For example, we have invested in strategic selling initiatives to improve efficiency and operational metrics to reduce costs. These investments will allow us to enhance our margins and to continue to grow our revenue.

在幻燈片 10 中，我們總結了我們的長期資本配置優先事項。我們的首要任務是對我們的業務進行再投資，其中包括將資金分配給我們預計將推動利潤和收入增長的項目。例如，我們投資於戰略銷售計劃以提高效率和運營指標以降低成本。這些投資將使我們能夠提高利潤率並繼續增加收入。

Our second priority is our commitment to debt reduction and maintaining a strong balance sheet. We expect to maintain a conservative leverage profile with a range of 2 to 3x net debt to EBITDA with a preference to stay at the low end of that range. We will continue to target strategic acquisitions that are aligned with our growth priorities and are expected to grow shareholder value over the long-term. We will look for opportunities that will enable us to expand into new regions, channels or products. We expect to integrate our acquisitions and delever, while carefully evaluating other possible acquisition opportunities as part of our overall strategic plan.

我們的第二個優先事項是我們致力於減少債務和維持穩健的資產負債表。我們預計將保持保守的槓桿率，淨債務與 EBITDA 的比率在 2 到 3 倍之間，並傾向於保持在該範圍的低端。我們將繼續瞄準符合我們增長重點的戰略收購，並有望在長期內增加股東價值。我們將尋找機會，使我們能夠擴展到新的地區、渠道或產品。我們希望整合我們的收購和去槓桿化，同時仔細評估其他可能的收購機會，作為我們整體戰略計劃的一部分。

And now, I would like to turn the call back over to Jeff.

現在，我想把電話轉回給傑夫。

Thanks, John. Next, I'll review our outlook for the remainder of 2022 on Slide 11. With our very strong performance during the first half of the year, we are raising our guidance for the full year of 2022. We now expect net sales in the range of $1.45 billion to $1.525 billion and adjusted EBITDA in the range of $250 million to $265 million. Initial indications for the second half of this year based on the results thus far in July are showing continued operational improvement, increased sales and strong profitability as we navigate the ongoing inflationary environment and the impact of changes in interest rates. Some modeling assumptions are also included on the left side of the slide. These are unchanged from what we provided at the beginning of the year.

謝謝，約翰。接下來，我將在幻燈片 11 上回顧我們對 2022 年剩餘時間的展望。由於我們在今年上半年的表現非常強勁，我們正在提高對 2022 年全年的指導。我們現在預計淨銷售額在該範圍內14.5 億美元至 15.25 億美元，調整後的 EBITDA 在 2.5 億美元至 2.65 億美元之間。根據 7 月份迄今的結果，今年下半年的初步跡象顯示，隨著我們應對持續的通貨膨脹環境和利率變化的影響，運營持續改善、銷售額增加和盈利能力強勁。幻燈片左側還包含一些建模假設。這些與我們年初提供的內容沒有變化。

Turning to Slide 12. In closing today, I want to review why we believe PGT Innovations is in an excellent position to continue delivering on our business model and creating long-term value for our shareholders. First, we are a national leader with an outstanding portfolio of brands that have been made even stronger through recent acquisitions. Our products continue to gain traction, both in impact resistant and in indoor/outdoor living markets, and we service geographies that are continuing to show growth in population.

轉到幻燈片 12。在今天結束時，我想回顧一下為什麼我們相信 PGT Innovations 處於繼續實現我們的商業模式並為我們的股東創造長期價值的絕佳位置。首先，我們是全國領先的品牌，擁有出色的品牌組合，這些品牌通過最近的收購變得更加強大。我們的產品在抗衝擊和室內/室外生活市場上繼續獲得牽引力，我們服務於人口持續增長的地區。

Second, our product portfolio is diversified, which allows us to target profitable growth in both the new construction and the R&R channels, especially in the Southeast, Texas and West Coast. While we see slowing growth rates on a national level, we are seeing continued growth from our dealers and installers within our markets that we serve. Third, increased capacity through operational improvements and capital investments help us deliver consistent margin expansion and meet growing demand.

其次，我們的產品組合多樣化，這使我們能夠在新建築和 R&R 渠道實現盈利增長，尤其是在東南部、得克薩斯州和西海岸。雖然我們看到全國范圍內的增長率放緩，但我們看到我們服務的市場中的經銷商和安裝商持續增長。第三，通過運營改進和資本投資提高產能有助於我們持續擴大利潤並滿足不斷增長的需求。

Fourth, innovation and product development provides our customers with innovative premium products to meet their changing needs. We plan to continue to invest in both R&D and talent. And finally, I will conclude by reminding you that sustainability has long been a part of our company's culture. We believe an environmental focus contributes to smarter, more effective ways of conducting business. We seek to further elevate our commitment to conducting business in a socially and environmentally responsible manner. We have long tradition of caring for the health and welfare of our team members and the communities we serve.

第四，創新和產品開發為我們的客戶提供創新的優質產品，以滿足他們不斷變化的需求。我們計劃繼續投資於研發和人才。最後，我要提醒大家，可持續發展長期以來一直是我們公司文化的一部分。我們相信，對環境的關注有助於以更智能、更有效的方式開展業務。我們尋求進一步提升我們以對社會和環境負責的方式開展業務的承諾。我們擁有關心團隊成員和我們所服務社區的健康和福利的悠久傳統。

At this time, let me begin the Q&A. Operator?

這時，讓我開始問答。操作員？

(Operator Instructions) And our first question will come from Judy Merrick of Truist Securities.

（操作員說明）我們的第一個問題將來自 Truist Securities 的 Judy Merrick。

This is Judy calling in for Keith Hughes. I guess, I wonder if you could talk a little bit about fall in the South and Florida. You talked about some of the pull-through last quarter. Is that sort of normalized? It seems like there's a lot going on, did you say, orders were up like 13% sequentially in the (technical difficulty)?

我是 Judy 為 Keith Hughes 打電話。我想，我想知道你是否可以談談南部和佛羅里達州的秋天。你談到了上個季度的一些突破。那種規範化了嗎？似乎發生了很多事情，你是說，訂單在（技術難度）中連續增長了 13% 嗎？

Yes. Sure, Judy. Let me take that one. Yes, as Jeff was speaking on the call, we have seen strong order growth in our Southeast region. What he mentioned was, we did have 5 new homebuilders that we signed up in the quarter. So we were very pleased with that. We continue to see R&R demand along with that new construction demand. So we've been very pleased with that. And the other factor that's helped us along with that pricing that we report with our sales is the pricing. So pricing has actually influenced that number as well. Those are sort of the drivers that have helped us to have comfort in the numbers and the growth and the outlook for the back half of the year.

是的。當然，朱迪。讓我拿那個。是的，正如 Jeff 在電話會議上所說的那樣，我們看到東南地區的訂單增長強勁。他提到的是，我們確實在本季度簽約了 5 家新的房屋建築商。所以我們對此感到非常高興。我們繼續看到 R&R 需求以及新的建築需求。所以我們對此非常滿意。另一個幫助我們以及我們報告的銷售定價的因素是定價。所以定價實際上也影響了這個數字。這些都是幫助我們對今年下半年的數字、增長和前景感到欣慰的驅動因素。

Yes. And I'll just add to that. Obviously our backlog basically remained the same as it was at year-end. Yet our lead times in on-time and in-full has improved dramatically. Our lead times are improved as much as 50% in some cases. Our aluminum lead times, for example, is down to 4 weeks -- 4 to 7 weeks depending on the customer and the order. Our vinyl lead time is anywhere from a low of 7% to a high of 15%. So, it just depends who is ordering and what kind of project it is. So you couple dramatically improved operational performance with a strong sales growth, the backlog basically remains the same. We hit these kind of numbers.

是的。我會補充一點。顯然，我們的積壓工作與年底基本保持不變。然而，我們的準時交貨時間和完工交貨時間已顯著改善。在某些情況下，我們的交貨時間縮短了 50%。例如，我們的鋁交貨時間縮短至 4 週——4 到 7 週，具體取決於客戶和訂單。我們的乙烯基交貨時間從 7% 到 15% 不等。所以，這只取決於誰在訂購以及它是什麼類型的項目。因此，您將顯著提高的運營績效與強勁的銷售增長結合起來，積壓基本上保持不變。我們達到了這些數字。

In the back half, I don't think there has been this tremendous pull forward. What we'll see in the back half, obviously we're in somewhat of a transition period [our building] products are if the market adjusts for the economics going on and interest rate changes and whatnot. But as we enter the back half, we still see strong demand. Like John had mentioned, those 5 new builders, that was all incremental. So we literally didn't have those agreements before. So, we're getting incremental market share gain in volume, as well as the R&R market has really stabilized and growing for us. And we've had Florida to kind of help us with that. The State of Florida passing that holiday -- 2-year of sales tax holiday for impact-resistant products, home hardening products. So we've got a lot of good tailwinds as we finish out the year. That's why we're pretty confident in the guidance we've given.

在後半段，我認為沒有這種巨大的推動力。我們將在後半部分看到，顯然我們正處於某種過渡期 [我們的建築] 產品，如果市場根據經濟發展和利率變化等進行調整。但是當我們進入後半段時，我們仍然看到強勁的需求。就像 John 提到的，那 5 個新的構建器，都是增量的。所以我們之前確實沒有這些協議。因此，我們在數量上獲得了增量市場份額，R&R 市場已經真正穩定並為我們增長。我們有佛羅里達來幫助我們解決這個問題。佛羅里達州度過了那個假期——抗衝擊產品、家庭硬化產品的銷售稅減免期為 2 年。因此，在我們結束這一年時，我們有很多順風。這就是為什麼我們對我們給出的指導非常有信心。

Okay. Great. And that sales tax exemption, was that mostly underway in the second quarter? And have you seen that help your pricing actions in Florida as well?

好的。偉大的。銷售稅豁免主要是在第二季度進行的嗎？你有沒有看到這也有助於你在佛羅里達州的定價行動？

Yes. It's literally just started. And we feel we'll start to see that -- we started seeing some of that benefit. But again, it's a 2-year program. So, we're not getting -- I don't think -- the goal was not have a big influx of orders across the state and overwhelm the infrastructure -- the installed infrastructure. And so, making a 2-year program that the legislature has done was incredibly smart. That allows homeowners the time to order the right product and get it installed. So, we have seen some growth. Just last year -- I'm sorry, last week at NewSouth for instance, we had a $4 million order week. So that's considered strong for NewSouth. And so, we are starting to see some benefits of that sales tax holiday. But we do think that's going to bleed out over the next 24 months. So it's going to be a good tailwind to come.

是的。它實際上才剛剛開始。我們覺得我們會開始看到這一點——我們開始看到其中的一些好處。但同樣，這是一個為期 2 年的計劃。所以，我們沒有——我不認為——目標不是在全州範圍內大量湧入訂單並壓垮基礎設施——已安裝的基礎設施。因此，制定立法機構已經完成的為期 2 年的計劃非常聰明。這讓房主有時間訂購合適的產品並進行安裝。所以，我們看到了一些增長。就在去年——對不起，例如，上週在 NewSouth，我們每周有 400 萬美元的訂單。所以這對 NewSouth 來說被認為是強大的。因此，我們開始看到銷售稅假期的一些好處。但我們確實認為這將在未來 24 個月內消失。所以這將是一個很好的順風。

The next question comes from Phil Ng of Jefferies.

下一個問題來自 Jefferies 的 Phil Ng。

This is Maggie on for Phil. I guess, first, gross margins were really strong this quarter. Was that primarily those late 2021 price increases coming through or are you starting to see any areas of cost relief? And then, Jeff, you mentioned a new price increase. Were you referring to the May increase or have you announced anything incremental to that?

這是菲爾的瑪吉。我想，首先，本季度的毛利率非常強勁。這主要是 2021 年末的價格上漲，還是您開始看到任何成本降低的領域？然後，傑夫，你提到了新的價格上漲。你指的是 5 月的增長，還是你宣布了任何增量？

Yes. So with regards to our margins, we were really pleased across the board, really want to complement our supply chain team, our operating team and supply chain team. They've done a very good job of putting us in a position to have materials that we need to produce the products that our customers want. So, it was the control with respect to the supply chain that has allowed us to realize those margins. Our operating team has done a good job with our manufacturing processes and labor. So we are very pleased from that perspective. And then, our pricing obviously has kept up with the increases that we have seen from that perspective overall.

是的。所以關於我們的利潤率，我們真的很高興，真的很想補充我們的供應鏈團隊、我們的運營團隊和供應鏈團隊。他們做得很好，使我們能夠擁有生產客戶想要的產品所需的材料。因此，正是對供應鏈的控制讓我們實現了這些利潤。我們的運營團隊在製造流程和勞動力方面做得很好。因此，從這個角度來看，我們感到非常高興。然後，我們的定價顯然跟上了我們從整體上看到的增長。

And then, what was the second part of your question?

然後，你問題的第二部分是什麼？

May price.

五月價。

May price increases. Yes, so the May price increase is the only one that we have. I don't know that we have another one scheduled in the foreseeable future. So, I think that's where we are for this point in time.

五月漲價。是的，所以 5 月的價格上漲是我們唯一的一次。我不知道在可預見的將來我們還會安排另一個。所以，我認為這就是我們目前所處的位置。

Yes. And I'll just comment a little bit about that margin and the strong performance there. I mean, it's literally attributed to our improved operations, coupled with realization of pricing. You got to keep in mind, we've raised our team members' pay twice over the last 12 months. So we've had a lot of increased cost, but we are realizing the pricing actions we took, I'd say, over the last 9 months or so, they're now obviously fully recognized in the P&L. But I don't know if we emphasize this, but going from on-time and in-full in the low 30s with PGT, our main brand, to now we're bumping 68%, heading to 70% on-time and in-full, has been a huge factor in driving gross margin improvement, huge. And that's what, in essence, gives me confidence in the back half because we used to run PGT at 95% to 98% on-time and in-full. So we still guide a good 20-plus basis points improvement in that metric. And that will drive continued gross margin improvement as we continue to perform well here at the original PGT flagship brand.

是的。我只會評論一下這個利潤率和那裡的強勁表現。我的意思是，這實際上歸因於我們改進的運營以及定價的實現。你必須記住，在過去的 12 個月裡，我們兩次提高了團隊成員的工資。所以我們的成本增加了很多，但我們意識到我們在過去 9 個月左右採取的定價行動，它們現在顯然在損益表中得到了充分認可。但我不知道我們是否強調這一點，但我們的主要品牌 PGT 從 30 多歲的準時率和全面率到現在的 68%，準時率和 70% -full，一直是推動毛利率改善的巨大因素，巨大。從本質上講，這就是讓我對後半部分充滿信心的原因，因為我們過去常常以 95% 到 98% 的準時率和全額運行 PGT。因此，我們仍然指導該指標有 20 多個基點的改進。這將推動毛利率持續提高，因為我們在原來的 PGT 旗艦品牌上繼續表現良好。

Okay. That's really helpful. And I guess, going off the strength in 2Q, was there any kind of onetime tailwind we should be mindful of on -- I just ask because 2Q and 3Q margins are generally pretty similar, but the guide implies maybe there could be some drop-off in 3Q. So I just want to flush that out.

好的。這真的很有幫助。而且我想，在第二季度的實力減弱後，是否有任何一種我們應該注意的一次性順風 - 我只是問，因為第二季度和第三季度的利潤率通常非常相似，但指南暗示可能會有一些下降 -第三季度關閉。所以我只想把它沖掉。

The only thing that I see really with respect to our Q3 guidance, when you look at it, I'll address [the guidance so far]. Our Q4 should look like Q1 to some degree, right? And [I'd say], you could sort of squeeze what Q3 would look like. One of the things that we did have benefiting us, and you'll see in our Q1, we release it next week, is we had a benefit from our hedging positions in the first 6 months. That will actually flip. We're going to have a liability that we'll have to amortize in the back half of the year. So we'll have a little bit of a headwind from that perspective. Also, what we're balancing as well is pricing and cost. So that dynamic will continue, right? So we don't expect a 19.3% margin in Q3. So those are the things -- those are the dynamics that we're sort of thinking through in our guidance. And that's what resulted in the ranges that we provided.

關於我們的第三季度指南，我真正看到的唯一一件事是，當你看到它時，我會解決 [the guidance so far]。我們的 Q4 應該在某種程度上看起來像 Q1，對吧？而且 [我會說]，你可以壓縮 Q3 的樣子。我們所做的一件事讓我們受益，你會在我們下週發布的第一季度看到，我們在前 6 個月從對沖頭寸中受益。那實際上會翻轉。我們將有一項負債，我們必須在今年下半年攤銷。因此，從這個角度來看，我們會遇到一些不利因素。此外，我們也在平衡定價和成本。所以這種動力會持續下去，對吧？所以我們預計第三季度的利潤率不會達到 19.3%。所以這些就是 - 這些是我們在指導中考慮的動態。這就是我們提供的範圍的結果。

The next question comes from Kenneth Zener of KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Kenneth Zener。

This is actually Christian Zyla on for Ken Zener. First question, could you just quantify the pricing unit contribution in the quarter? I know last quarter it was about 13% price, 4% units. I don't know if you have that breakdown available, that would be helpful.

這實際上是 Ken Zener 的 Christian Zyla。第一個問題，您能否量化本季度的定價單位貢獻？我知道上個季度大約是 13% 的價格，4% 的單位。我不知道你是否有可用的細分，那會很有幫助。

Sorry about that. So, for volume, what we said is, we're in the low double-digit range for volume, unit volume increases and then the pricing is in that high-teens range in that area. So that's the breakdown between volume and price.

對於那個很抱歉。因此，對於數量，我們所說的是，我們處於低兩位數的數量範圍內，單位數量增加，然後定價在該區域的高十幾位範圍內。這就是數量和價格之間的細分。

Great. And then, understand some costs have come down, especially commodities, aluminum, et cetera. But given that other costs remain elevated, I know you said you don't anticipate any future price increases. In terms of, I guess, demand and the unit growth, do you kind of see that stabilizing? Do you see that looking more like first quarter or, I guess, how do you just see that going for the rest of the year?

偉大的。然後，了解一些成本已經下降，尤其是大宗商品、鋁等。但鑑於其他成本仍然居高不下，我知道你說過你預計未來價格不會上漲。我想，就需求和單位增長而言，您是否看到這種情況趨於穩定？您是否認為這看起來更像是第一季度，或者我想，您如何看待今年剩餘時間的情況？

Well, when I look at the full year, we will react if prices continue to change. If inflation is there, as Jeff was saying, with respect to our labor inflation and things of that nature, we would implement another price increase. I guess the way I should have clarified that is saying that we don't foresee one at this point. But we reserve the right off to change that should the dynamics change going forward.

好吧，當我回顧全年時，如果價格繼續變化，我們會做出反應。如果像傑夫所說的那樣存在通貨膨脹，關於我們的勞動力通貨膨脹和類似性質的事情，我們將實施另一次價格上漲。我想我應該澄清的方式是說我們目前沒有預見到這一點。但是，如果動態發生變化，我們保留更改的權利。

And then, what was the second part of your question again, sorry?

然後，您的問題的第二部分又是什麼，抱歉？

The unit volumes for the rest of the year.

今年剩餘時間的單位體積。

The rest of the year, unit volume. Unit volume will be lower than what it was in the first half of the year with pricing where we were. So that's sort of what the revenue breakdown will be in the back half of the year.

今年剩餘時間，單位體積。單位數量將低於今年上半年的價格，我們的定價是這樣的。這就是今年下半年的收入明細。

Great. And then...

偉大的。接著...

I'll remind you, the second quarter is always our strongest quarter followed very closely by the third quarter. Fourth quarter is typically our -- I'd call it our least growth quarter because we have both Thanksgiving and Christmas holidays in there. And right now we're running almost 55% -- close to 60% R&R. So, with heavy R&R concentration, it makes the fourth quarter comps, it makes it tough in terms of just sales growth for the R&R business in that fourth quarter.

我會提醒你，第二季度始終是我們最強勁的季度，緊隨其後的是第三季度。第四季度通常是我們的 - 我稱之為增長最少的季度，因為我們在那裡有感恩節和聖誕節假期。現在我們運行了將近 55%——接近 60% 的 R&R。因此，由於 R&R 集中度很高，它使第四季度變得更加複雜，這使得第四季度 R&R 業務的銷售增長變得艱難。

Great. And if I could just squeeze one more in. In terms of M&A pipeline, can you just talk a little bit about how the pipeline is looking? I know Eco, Anlin have been performing relatively well and you discussed your priorities for any future M&A. But just if you could talk through the pipeline how that looks.

偉大的。如果我能再擠一個進去。在併購管道方面，你能談談管道的外觀嗎？我知道 Eco，Anlin 的表現相對較好，你們討論了未來併購的優先事項。但只要你能通過管道談論它的外觀。

Yes, real quick. Eco, you're right, that glass plant has been an incredible benefit for PGT quite frankly. The only thing impacting us operationally right now is still the supply chain, and that's mainly coming from the glass side. So, from an operational standpoint, the supply chain is shored up very nicely for us, except for, again continued back ordering some door glass. But other than that, the acquisition was key. Anlin is performing incredibly well, definitely above the acquisition models we had planned.

是的，真的很快。 Eco，你是對的，坦率地說，玻璃廠對 PGT 來說是一個不可思議的好處。目前唯一影響我們運營的仍然是供應鏈，這主要來自玻璃方面。因此，從運營的角度來看，供應鏈對我們來說得到了很好的支持，除了再次繼續訂購一些門玻璃。但除此之外，收購是關鍵。 Anlin 的表現非常好，絕對高於我們計劃的收購模式。

As we look to the future, right now, there's probably a handful of different potential targets we're looking at or in the process of talking to. And they are still in that window and door category in our core markets that we want to be in, which are surrounded by those destination states, Florida, Texas, out West, Arizona, Salt Lake, California, those kind of markets that we are concentrating our efforts on at this point.

當我們展望未來時，現在，我們可能正在考慮或正在與之交談的幾個不同的潛在目標。在我們想要進入的核心市場中，它們仍然屬於門窗類別，這些市場被那些目的地州包圍，佛羅里達州、德克薩斯州、西部、亞利桑那州、鹽湖城、加利福尼亞州，以及我們所處的那些市場集中力量在這一點上。

The next question comes from Michael Rehaut of JPMorgan.

下一個問題來自摩根大通的 Michael Rehaut。

Doug Wardlaw on for Mike. I was just wondering if you can give some -- a little bit further color on the month of July and maybe if possible break it out between the different end markets and regions?

Doug Wardlaw 替下 Mike。我只是想知道您是否可以在 7 月份提供一些更多的顏色，如果可能的話，可以在不同的終端市場和地區之間進行分解嗎？

Well, we typically don't break it out between end markets and regions, especially for July. But I will say this, July is strong. It's given us confidence. So when we raised our guidance that already 1 month into the third quarter, we're feeling very confident. July sequential to June grew double-digits. So, we feel good, again, about our coming third quarter based of that July result. But we're not at the point where we can break it out between business units (inaudible) we literally are still closing it.

好吧，我們通常不會在終端市場和地區之間進行細分，尤其是在 7 月份。但我要說的是，七月很強勁。它給了我們信心。因此，當我們提高第三季度已經 1 個月的指導時，我們感到非常有信心。七月環比六月增長兩位數。因此，我們再次對基於 7 月份結果的即將到來的第三季度感到滿意。但我們還沒有達到可以在業務部門之間打破它（聽不清）的地步，我們實際上仍在關閉它。

Awesome. And can you give a little bit of further insight on the current state of the supply chain moving forward in terms of the duration of the rest of this year, do you think you'll see some sizable improvement there or is it still kind of unknown at this point?

驚人的。你能否就今年剩餘時間的持續時間進一步了解供應鏈的當前狀態，你認為你會在那裡看到一些相當大的改進還是仍然未知在此刻？

Again, I think the supply chain has improved for our company, and I had mentioned that in my opening comment. Our supply chain team has done an incredible job. Our purchasing team is staying ahead of the curve on some of the demand issues and supply constrained issues. But we still have, as I mentioned earlier, a glass supply issue at times with our major door glass supplier that can cause disruption within the plant. We are actively doing steps to mitigate that, obviously, with the addition of a glass plant last year at Eco. We're increasing the capacity there as we speak to try to offset these fluctuations we see with the goal quite simply to be back in the 95-plus percent for PGT on-time and in-full.

同樣，我認為我們公司的供應鏈有所改善，我在開場白中已經提到了這一點。我們的供應鏈團隊做得非常出色。我們的採購團隊在一些需求問題和供應受限問題上保持領先地位。但正如我之前提到的，我們仍然存在玻璃供應問題，有時我們的主要門玻璃供應商可能會導致工廠內部中斷。顯然，我們正在積極採取措施減輕這種情況，去年在 Eco 增加了一家玻璃工廠。我們正在增加那裡的容量，試圖抵消我們看到的這些波動，目標很簡單，就是讓 PGT 的準時率和滿負荷率回到 95% 以上。

Other areas of concern that have popped up, interlayer constraints can be a challenge at times. But we have incredibly great relationships with our supplier there, and they have allocated us and put us top of their priority list since we are the largest impact player. And full glass supply, full glass is limited, but again we have a great relationship there with incredible glass supply company on the float side. So we're able to get float glass. But other than that, I think supply chain is really stabilized out for us and it has allowed us to improve performance-wise as well.

出現的其他關注領域，層間約束有時可能是一個挑戰。但我們與那裡的供應商有著非常好的關係，他們已經分配了我們並將我們放在他們優先考慮的名單上，因為我們是最大的影響力參與者。全玻璃供應，全玻璃供應有限，但我們再次與浮動方面令人難以置信的玻璃供應公司建立了良好的關係。所以我們能夠得到浮法玻璃。但除此之外，我認為供應鏈對我們來說真的很穩定，它也讓我們能夠提高績效。

This concludes our question-and-answer session. I would like to turn the conference back over to John Kunz for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 John Kunz 作閉幕詞。

Thank you for joining us today on our second quarter earnings call. We appreciate your interest in our company and look forward to your participation on our third quarter earnings call in November. Andrea, at this time, you may disconnect.

感謝您今天加入我們的第二季度財報電話會議。感謝您對我們公司的關注，並期待您參加我們 11 月份的第三季度財報電話會議。 Andrea，這個時候，你可能會斷開連接。

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

會議現已結束。感謝您參加今天的演講，您現在可以斷開連接了。