(PGTI) 2022 Q4 法說會逐字稿

Good morning, and Welcome to PGT Innovations Fourth Quarter 2022 Earnings Call. (Operator Instructions)

早上好，歡迎來到 PGT Innovations 2022 年第四季度財報電話會議。 （操作員說明）

Please note that this event is being recorded. I would now like to turn the call over to Mr. Brad West Senior Vice President of Corporate Development. Please go ahead.

請注意，此事件正在記錄中。我現在想把電話轉給企業發展高級副總裁 Brad West 先生。請繼續。

Thank you. Good morning, and welcome to the PGT Innovations Fourth Quarter and Full Year 2022 Investor Conference Call.

謝謝。早上好，歡迎來到 PGT Innovations 第四季度和 2022 年全年投資者電話會議。

With me on the call today are President and CEO, Jeff Jackson; and our Chief Financial Officer, John Kunz. On the Investor Relations 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.

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關係部分，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 2023 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 in 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 2023 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. A reconciliation to the most directly comparable GAAP measures is included in the tables in the earnings release and in 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。與最直接可比的 GAAP 措施的對賬包含在收益發布的表格和幻燈片演示附錄中。

At this time, I will 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 Jeff Jackson。

Thank you, Brad. Good morning, everyone. And thanks for joining us on today's call. I'd like to begin by thanking each and every team member for their contributions to what turned out to be a record year for PGT Innovations despite the challenges we face, which included both a Category 4 hurricane and a subsequent ransomware attack. We overcame and delivered record revenue and EBITDA for the full year.

謝謝你，布拉德。大家，早安。感謝您加入我們今天的電話會議。我想首先感謝每一位團隊成員，儘管我們面臨挑戰，包括 4 級颶風和隨後的勒索軟件攻擊，但他們為 PGT Innovations 創紀錄的一年做出的貢獻。我們克服了困難，實現了創紀錄的全年收入和 EBITDA。

Our growth is a result of our steady effort to improve PGT Innovations through our strategic and operational framework of profitable growth as we continue to create long-term value for our shareholders while serving our customers and communities. We hit the ground running in 2022 despite inflationary pressures on materials, labor costs, supply chain challenges, hurricanes, ransomware attacks, and a slowing economy due to high-interest rates. We were able to increase revenue to $1.49 billion grow adjusted EBITDA up to $254 million and expand our adjusted EBITDA margins by 240 basis points compared to 2021.

我們的增長是我們通過盈利增長的戰略和運營框架不斷努力改善 PGT Innovations 的結果，因為我們在為客戶和社區服務的同時繼續為股東創造長期價值。儘管存在材料通脹壓力、勞動力成本、供應鏈挑戰、颶風、勒索軟件攻擊以及高利率導致的經濟放緩，我們還是在 2022 年開始運營。與 2021 年相比，我們能夠將收入增加到 14.9 億美元，將調整後的 EBITDA 增加到 2.54 億美元，並將調整後的 EBITDA 利潤率提高 240 個基點。

We also expanded our product portfolio with the addition of Martin's garage doors. Martin has allowed us to expand into an adjacent building products category, add premium garage doors to our product portfolio broadened our geographic footprint and brand presence while creating cross-selling opportunities for both companies. We are still in the early stages of integrating Martin business and remain optimistic about the opportunities, the acquisition brings to PGT Innovations in the coming years.

我們還通過添加 Martin 的車庫門擴展了我們的產品組合。 Martin 使我們能夠擴展到相鄰的建築產品類別，在我們的產品組合中添加優質車庫門，擴大了我們的地理足跡和品牌影響力，同時為兩家公司創造了交叉銷售機會。我們仍處於整合 Martin 業務的早期階段，並對此次收購在未來幾年為 PGT Innovations 帶來的機會保持樂觀。

Next on Slide 5, let's take a closer look at the fourth quarter our sales trends and key messages. But the challenges presented by Hurricane Ian and the ransomware attack. We generated total revenue of $341 million during the quarter as we mentioned on our third-quarter call. Both events limited our ability to generate revenue during the fourth quarter. This organic growth was 5% for the quarter. Sales in our southeast region were impacted by both events, leading to sales of 243 million during the quarter an increase of 5 million versus the prior year quarter. However, our focus on costs, labor efficiencies, lead times, service and quality allowed us to reduce our backlog from the third quarter even though we had sequential increases in orders in the southeast region. These improvements positioned us to be the supplier of choice for our customers going into 2023 allowing us to execute one of our strategic initiatives of recapturing market share.

接下來在幻燈片 5 上，讓我們仔細看看第四季度我們的銷售趨勢和關鍵信息。但是伊恩颶風和勒索軟件攻擊帶來的挑戰。正如我們在第三季度電話會議上提到的那樣，本季度我們的總收入為 3.41 億美元。這兩個事件都限制了我們在第四季度產生收入的能力。該季度的有機增長率為 5%。我們東南地區的銷售額受到這兩個事件的影響，導致本季度銷售額為 2.43 億，比去年同期增加 500 萬。然而，我們對成本、勞動力效率、交貨時間、服務和質量的關注使我們能夠從第三季度開始減少積壓訂單，儘管我們在東南地區的訂單連續增加。這些改進使我們成為 2023 年客戶的首選供應商，使我們能夠執行我們奪回市場份額的戰略舉措之一。

Operationally, the suddenness of each event did not allow our operating teams to immediately adjust our cost structure to match the operating capacities at our plants. This resulted in unfavorable decremental margins during the quarter. However, for the month of December, our Venice operations had fully recovered and are currently at operating rates better than they were prior to the storm. A ransomware attack did temporarily disrupt our South East Florida operations. Our Business Technology Services team did a fantastic job in restoring our systems and getting us back up and running averting any need to make any ransomware payment.

在運營上，每個事件的突然性都不允許我們的運營團隊立即調整我們的成本結構以匹配我們工廠的運營能力。這導致本季度不利的遞減利潤率。然而，在 12 月份，我們的威尼斯業務已完全恢復，目前的運營率比風暴前要好。勒索軟件攻擊確實暫時中斷了我們在佛羅里達州東南部的運營。我們的業務技術服務團隊在恢復我們的系統並讓我們恢復正常運行方面做得非常出色，避免了支付勒索軟件的任何費用。

Jen excels in the Western Region increased by 10 million or 15%. With strong growth coming from each core market. The investments we made in production capacity has allowed us to increase our throughput by 30% since December 2021, restoring our lead times primarily to the four- to 10-week range. Western Window Systems now has the capacity to produce over 5 million of products each week with the addition of our recently acquired manufacturing space. Both lines of our western window business custom and production builders grew in the quarter and full year.

Jen excels在西部地區增加了1000萬或15%。每個核心市場都有強勁的增長。自 2021 年 12 月以來，我們對產能的投資使我們的吞吐量增加了 30%，將我們的交貨時間主要恢復到 4 到 10 週的範圍。隨著我們最近收購的製造空間的增加，Western Window Systems 現在有能力每週生產超過 500 萬件產品。我們的西窗業務定制和生產製造商的兩條生產線在本季度和全年均有所增長。

Additionally, we are expecting to see increased share in the premium indoor-outdoor market with the launch of our newest 300 series minimalist sliding glass door. This product was introduced at the International builders show earlier this month, and the initial reactions have been extremely encouraging. The expansion initiatives at Anlin are in an early stage of implementation. These initiatives will enable us to increase our production capacity expand our product portfolio and allow us to increase our focus in the southwest region or in our vinyl markets. All result of Anlin came in above our acquisition model expectations.

此外，我們預計隨著我們最新推出的 300 系列簡約滑動玻璃門的推出，我們在高端室內外市場的份額將會增加。本月早些時候在國際建築商展上推出了該產品，最初的反應非常令人鼓舞。安林的擴張計劃正處於早期實施階段。這些舉措將使我們能夠提高生產能力，擴大我們的產品組合，並使我們能夠增加對西南地區或乙烯基市場的關注。安林的所有結果都超出了我們收購模式的預期。

We were able to leverage our price, cost portfolio and our western business unit with increased sales resulted in higher segment EBITDA margins compared to the prior year quarter. Commitment to innovation which drives us to deliver products with features, performance and value demanded by our builders and customers was highlighted during the quarter with the launch of two new innovative glass products. Our thin triple insulated glass unit and our diamond glass impact-resistant glass units. PGT Innovations will be the first manufacturer in the U.S. window and door market to offer such products.

與去年同期相比，我們能夠利用我們的價格、成本組合和我們的西部業務部門增加銷售額，從而提高分部 EBITDA 利潤率。本季度推出了兩種新型創新玻璃產品，突出了對創新的承諾，這促使我們提供具有我們的建築商和客戶所需的特性、性能和價值的產品。我們的薄型三重絕緣玻璃單元和我們的金剛石玻璃抗衝擊玻璃單元。 PGT Innovations 將成為美國門窗市場上第一家提供此類產品的製造商。

Additionally, we will be the exclusive supplier of impact-resistant windows and doors featuring diamond glass for the use in residential and mixed-use buildings in the U.S. Diamond glass provides greater clarity, more scratch resistance and up to 45% lighter than the standard impact product and this easier to install. All these benefits come with the same design pressure and impact ratings as our current products in triple glass provides improved performance to meet the tightening North American Energy Standards known as ENERGY STAR Version 7. Meet the inflation Reduction Act requirements for a homeowner to obtain incentives without the need for frame hardware or installation rework and they have a significant weight and cost advantage to other emerging technologies. Backlog was 235 million at the end of the year, including 5 million related to mark down from 356 million at the start of the year.

此外，我們將成為美國住宅和混合用途建築中使用的採用金剛石玻璃的抗衝擊門窗的獨家供應商。金剛石玻璃具有更高的透明度、更強的耐刮擦性，並且比標準抗衝擊玻璃輕 45%產品，這更容易安裝。所有這些優點都具有與我們目前的三層玻璃產品相同的設計壓力和衝擊等級，提供改進的性能以滿足稱為能源之星版本 7 的日益嚴格的北美能源標準。框架硬件或安裝返工的需要，並且與其他新興技術相比，它們具有顯著的重量和成本優勢。年末積壓訂單2.35億件，其中減價訂單較年初3.56億件減少500萬件。

We received organic orders of 291 million of products during the fourth quarter, down from 307 million in the prior year quarter. This reduction in backlog is due to our improved operational performance and the realization of the investments we didn't make in our business.

我們在第四季度收到了 2.91 億件產品的有機訂單，低於去年同期的 3.07 億件。積壓訂單的減少是由於我們提高了運營績效以及實現了我們未在業務中進行的投資。

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

現在，我想把電話轉給 John Coots。更詳細地回顧第二季度的結果。約翰。

Thank you, Jeff. Moving on to Slide 6. We're very pleased to have achieved 341 million of sales in the fourth quarter despite the impact Hurricane Ian and the ransomware attack had on our business. A year-over-year increase in net sales was driven by 5% organic growth from our legacy businesses and revenue from our recent Anlin and Martin acquisitions.

謝謝你，傑夫。轉到幻燈片 6。我們很高興在第四季度實現了 3.41 億美元的銷售額，儘管颶風伊恩和勒索軟件攻擊對我們的業務造成了影響。淨銷售額的同比增長得益於我們傳統業務 5% 的有機增長以及我們最近收購的 Anlin 和 Martin 帶來的收入。

Our Western segment grew 15% organically while our southeast segment had a 2% organic growth despite the interruptions. In the fourth quarter, our sales breakdown was 58% R&R and 42% new construction. Organic R&R sales grew 1% compared to the fourth quarter of 2021. The strength of our legacy brands helped increase organic new construction sales by 12%.

儘管有中斷，我們的西部部分有機增長了 15%，而我們的東南部分有機增長了 2%。第四季度，我們的銷售額細分為 58% 的 R&R 和 42% 的新建築。與 2021 年第四季度相比，有機 R&R 銷售額增長了 1%。我們傳統品牌的實力幫助有機新建築銷售額增長了 12%。

Gross profit rose 12% to a $121 million for the fourth quarter of 2022 compared to the prior year quarter. Our fourth quarter results were driven by continued solid performance from our operating teams. Adjusted selling general and administrative expenses increased 60% in the fourth quarter, compared to the prior year, driven by SG&A from our recent acquisitions, the expansion of our New South Operation increased labor and distribution costs and an increase in marketing investment. Adjusted EBITDA was $48.2 million flat with the prior year quarter resulting from increased sales are offset by the inefficiencies experience resulting from the two as were mentioned disruptive events.

與去年同期相比，2022 年第四季度的毛利潤增長了 12%，達到 1.21 億美元。我們第四季度的業績是由我們的運營團隊持續穩定的業績推動的。與去年同期相比，第四季度調整後的銷售一般和行政費用增加了 60%，這是由於我們最近收購的 SG&A、我們新南業務的擴張增加了勞動力和分銷成本以及營銷投資的增加。調整後的 EBITDA 為 4820 萬美元，與去年同期持平，這是由於銷售額增加而被上述兩個破壞性事件導致的效率低下所抵消。

Our adjustments for the quarter included approximately 8 million of expense associated with product rationalization of our window brand in an effort to improve throughput and profitability and reduce underutilized assets. We elected to discontinue certain product lines within our window or portfolio. Additionally, we will adjust for certain expenses related to costs associated with the acquisition of Martin garage doors and the related refinancing of our credit facility.

我們對本季度的調整包括與窗戶品牌產品合理化相關的大約 800 萬美元的費用，以努力提高吞吐量和盈利能力並減少未充分利用的資產。我們選擇停止我們窗口或產品組合中的某些產品線。此外，我們將調整與收購 Martin 車庫門相關的成本以及我們信貸額度的相關再融資相關的某些費用。

The remaining costs related to Hurricane Ian, the ransomware attack and costs associated with our restructure. Our tax expense in the quarter came in at 26.4% bringing our full-year tax expense to 24.9% in line with our full year assumptions. We reported adjusted net income of $16.1 million or 0.27 cents per diluted share, compared to $18.8 million or 0.31 cents per diluted share in the fourth quarter of 2021.

其餘成本與颶風伊恩、勒索軟件攻擊和與我們重組相關的成本有關。我們本季度的稅收支出為 26.4%，使我們的全年稅收支出達到 24.9%，符合我們的全年假設。我們報告的調整後淨收入為 1610 萬美元或攤薄後每股收益 0.27 美分，而 2021 年第四季度為 1880 萬美元或攤薄後每股收益 0.31 美分。

Turning now to our balance sheet on Slide 7. At the end of the fourth quarter, we had net debt of $585 million, including a cash balance of $67 million. As we mentioned on our third quarter call, we had entered into a new five-year 250 million revolving credit facility in October, which was used along with cash on hand to fund the Martin's acquisition. The new facility allowed us to extend maturities while enhancing the company's liquidity.

現在轉到幻燈片 7 上的資產負債表。第四季度末，我們的淨債務為 5.85 億美元，包括 6700 萬美元的現金餘額。正如我們在第三季度電話會議上提到的那樣，我們在 10 月份簽訂了一項新的 5 年期 2.5 億美元的循環信貸額度，該額度與手頭現金一起用於為 Martin 的收購提供資金。新貸款使我們能夠延長期限，同時增強公司的流動性。

As of yearend, we had a trailing 12-month bank covenants net debt to adjusted EBIT ratio of 2.2x. We had another year of solid free cash flow performance as we generated a 151 million in free cash flow for the year, an increase of 121 million versus our prior year. This impressive free cash flow performance provides the backdrop and funding for our capital allocation priorities, including our share repurchase program and future strategic acquisitions.

截至年底，我們過去 12 個月的銀行契約淨債務與調整後息稅前利潤之比為 2.2 倍。我們的自由現金流表現又是穩健的一年，因為我們當年產生了 1.51 億美元的自由現金流，比上一年增加了 1.21 億美元。這一令人印象深刻的自由現金流表現為我們的資本配置優先事項提供了背景和資金，包括我們的股票回購計劃和未來的戰略收購。

Looking ahead to 2023, we would expect capital expenditures to be within 3 to 4% of sales. First quarter interest expense to be within 8 to 9 million, depreciation and amortization to be around 15 million and our tax rate to be 24 to 26%. And with that, I would like to turn the call back over to Jeff. Jeff?

展望 2023 年，我們預計資本支出將佔銷售額的 3% 至 4%。第一季度利息支出在 8 到 900 萬之間，折舊和攤銷在 1500 萬左右，我們的稅率為 24 到 26%。有了這個，我想把電話轉回傑夫。傑夫？

Thanks, John. Next, I would like to speak about our recently announced three-year $250 million share repurchase program authorized by our board. While building products stocks have come under pressure from the rising interest rate, environment and uncertainty around the economy. We do not believe our current stock price reflects the long-term value of our company would agree that near term operating environment is cloudy by the Fed's action to raise interest rates, making the full-year outlook a bit murky, but long-term we will remain very bullish about the outlook of our company.

謝謝，約翰。接下來，我想談談我們最近宣布的董事會授權的為期三年的 2.5 億美元股票回購計劃。雖然建築產品庫存受到利率上升、環境和經濟不確定性的壓力。我們不認為我們當前的股價反映了我們公司的長期價值，我們會同意近期經營環境因美聯儲加息而陰雲密布，使全年前景有些暗淡，但長期我們將繼續非常看好我們公司的前景。

Industry sources including John Burns, suggests that there are several macroeconomic trends that will support growth in new construction and R&R markets over the coming years. These trends include the need for an additional 17 million housing units to meet demand. 24 million homes will reach prime remodeling years by 2027 87% of mortgage borrowers are locked in with mortgage rates below 5%. The average homeowner has an all-time high of 348,000 in equity for their homes.

包括 John Burns 在內的行業消息人士表示，未來幾年，有幾種宏觀經濟趨勢將支持新建築和 R&R 市場的增長。這些趨勢包括需要額外的 1700 萬套住房來滿足需求。到 2027 年，將有 2400 萬套房屋達到主要改建年限 87% 的抵押貸款借款人被鎖定在抵押貸款利率低於 5% 的情況下。房主平均擁有 348,000 美元的房屋淨值，創歷史新高。

Our Florida brands have an additional benefit of increased hurricane awareness, evolving construction standards and the enactment of the home hardening sales tax relief on impact products over the next 2 years. These trends coupled with our strategy of being in markets where the demographics tend to be more favorable than the national averages suggest we should see more of a benefit than others in our space.

我們的佛羅里達品牌還有一個額外的好處，即在未來 2 年內提高颶風意識、不斷發展的建築標準以及對影響產品實施家庭硬化銷售稅減免。這些趨勢加上我們進入人口統計數據往往比全國平均水平更有利的市場的戰略表明，我們應該比我們所在領域的其他人看到更多的好處。

Additionally, our performance historically during the recent contractions has been better than that of our peers. As the leader in impact-resistant windows in doors, we would expect to grow share while looking for ways to penetrate new markets. As an example, we were very pleased to have recently received our first $500,000 order for impact-resistant products in Hawaii. The commitment to a $250 million share repurchase program will modestly impact our long-term capital allocation priorities.

此外，我們在最近經濟收縮期間的歷史表現優於我們的同行。作為防撞門窗的領導者，我們希望在尋找打入新市場的方法的同時擴大市場份額。例如，我們很高興最近在夏威夷收到了第一筆價值 500,000 美元的抗衝擊產品訂單。對 2.5 億美元股票回購計劃的承諾將適度影響我們的長期資本分配優先事項。

We will use our cash flow from operations to fund the program, and we expect to continue to operate within the stated leverage of 2 to 3x net debt to EBITDA. We expect that our commitment to the share repurchase program would not have an impact on our ability to reinvest capital in our business or for that matter, for assessing the right strategic acquisition. We will continue to make investments in capital equipment, such as advanced manufacturing and automation that will allow us to meet or exceed our customers' quality and delivery expectations.

我們將使用我們的運營現金流為該計劃提供資金，我們預計將繼續在 2 至 3 倍淨債務與 EBITDA 的規定槓桿範圍內運營。我們希望我們對股票回購計劃的承諾不會影響我們將資本再投資於我們的業務或就此而言評估正確的戰略收購的能力。我們將繼續投資於先進製造和自動化等資本設備，這將使我們能夠滿足或超越客戶的質量和交付期望。

Moving on to our 2023 outlook. While recent reports have moved more positive, industry experts are calling for a national retraction in both new construction and R&R markets during 2023. Additionally, the current interest rate actions by the Fed are limiting our visibility into the end market beyond the first quarter. At this time, we're going to limit our sales and EBITDA outlook to the first quarter, and we will provide more clarity for the remaining quarters as the economy starts to settle down.

繼續我們的 2023 年展望。雖然最近的報告變得更加積極，但行業專家呼籲在 2023 年全國范圍內收縮新建築和 R&R 市場。此外，美聯儲目前的利率行動限制了我們對第一季度之後終端市場的可見性。目前，我們將把我們的銷售額和 EBITDA 展望限制在第一季度，隨著經濟開始穩定下來，我們將為剩餘的季度提供更清晰的信息。

Despite the challenges presented by the higher interest rate environment, we expect to deliver another solid first quarter. We expect our revenue for the first quarter to be in the range of $370 million to $390 million. Supporting these sales levels with a pickup and orders in November, December and January in the Southeast region, which exceeded prior year levels. We anticipate adjusted EBITDA to be in the range of $60 million to $64 million.

儘管更高的利率環境帶來了挑戰，但我們預計第一季度將再創佳績。我們預計第一季度的收入將在 3.7 億美元至 3.9 億美元之間。東南地區 11 月、12 月和 1 月的取貨和訂單支持了這些銷售水平，超過了去年的水平。我們預計調整後的 EBITDA 將在 6000 萬至 6400 萬美元之間。

Historically, due to the seasonality nature of our business, sales in the first quarter are a bit lower than sales in the second and third quarters. The lower sales level do not allow us to effectively leverage the fixed cost structure of our business.

從歷史上看，由於我們業務的季節性，第一季度的銷售額略低於第二和第三季度的銷售額。較低的銷售水平不允許我們有效地利用我們業務的固定成本結構。

Additionally, the first quarter will include increased advertising and marketing expenses and costs associated with our participation in the International Builder Show, whereas we did not participate in that show last year. The incremental impact of those additional expenses will be approximately $5 million over prior year's first quarter. In closing today, let me reiterate why we believe PGT Innovations is in an excellent position to continue creating long-term value for our shareholders.

此外，第一季度將包括增加的廣告和營銷費用以及與我們參加國際建築展相關的成本，而我們去年沒有參加該展覽。這些額外費用的增量影響將比去年第一季度增加約 500 萬美元。今天結束時，讓我重申為什麼我們相信 PGT Innovations 處於繼續為股東創造長期價值的絕佳位置。

First, we are a national leader with an outstanding portfolio of brands that we have strengthened over the past few years. We are executing our growth strategy, including expanding in the adjacent building product categories to complement our existing portfolio of window and door brands. Our products in impact-resistant and indoor/outdoor living markets continue to gain traction. We serve geographies with strong population growth.

首先，我們是全國領先的品牌，我們在過去幾年中加強了品牌組合。我們正在執行我們的增長戰略，包括擴大相鄰的建築產品類別，以補充我們現有的門窗品牌組合。我們在抗衝擊和室內/室外生活市場的產品繼續受到關注。我們服務於人口增長強勁的地區。

Second, the diversification of our product portfolio continues to expand through acquisition and new product introduction, which further facilitates profitable growth in both the new construction and R&R channel.

其次，我們的產品組合通過收購和新產品引進不斷擴大，這進一步促進了新建築和 R&R 渠道的盈利增長。

Third, operational improvements and capital investments have increased our capacities, which helps us meet demand and deliver margin expansion. Strong free cash flow provides options to reinvest in the business and return capital to our shareholders.

第三，運營改進和資本投資提高了我們的能力，這有助於我們滿足需求並擴大利潤率。強勁的自由現金流提供了對業務進行再投資並將資本返還給股東的選擇。

Fourth, our ongoing investments in innovation, new product development and Anlin to help us provide customers with innovative premium products to meet their changing needs. Our products help protect both property and lives, and we will not compromise our commitment to conducting business in a socially responsible manner.

第四，我們在創新、新產品開發和安林方面的持續投資，幫助我們為客戶提供創新優質產品，以滿足他們不斷變化的需求。我們的產品有助於保護財產和生命，我們不會妥協以對社會負責的方式開展業務的承諾。

Lastly, as evidenced by our recently announced share repurchase program, we are committed to increasing shareholder value. While our results were impacted by Hurricane Ian and the ransomware attack during the quarter, we have never been more bullish on the long-term outlook for the company. I want to thank our shareholders, team members, channel partners and suppliers for their continued support.

最後，正如我們最近宣布的股票回購計劃所證明的那樣，我們致力於增加股東價值。雖然我們的業績在本季度受到颶風伊恩和勒索軟件攻擊的影響，但我們從未像現在這樣看好公司的長期前景。我要感謝我們的股東、團隊成員、渠道合作夥伴和供應商一直以來的支持。

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

這時候開始問答，接線員？

(Operator Instructions) First question will be from Mr. Keith Hughes of Truist.

（操作員說明）第一個問題將來自 Truist 的 Keith Hughes 先生。

On the first quarter guide, could you talk about what kind of organic number that would represent within there? And if you could kind of at least talk about it Southeast versus West in the first quarter.

在第一季度指南中，您能談談其中代表什麼樣的有機數字嗎？如果你能在第一季度至少談談東南與西部。

Sure, Keith, I can do that for you. If you look at the prior year, we came in top line around 358 or they're about 359. You have to add the Martin acquisition in there as well. So you have a few million, call it, $10 million, $15 million for the Anlin acquisition number, and then you have price impact. So that price impact can be anywhere, call it, 8%, 10%. And then the volume, we're expecting a decline overall.

當然，基思，我可以為你做。如果你看一下前一年，我們在 358 左右排在前列，或者他們在 359 左右。你還必須在其中加上對馬丁的收購。所以你有幾百萬，稱之為安林收購號，1000 萬美元，1500 萬美元，然後你就會對價格產生影響。因此，價格影響可以是任何地方，稱之為 8%、10%。然後是數量，我們預計整體會下降。

So we're -- our anticipation is that we'll have a volume decline. That's how we get up to, call it, the $370 million to $390 million range. I mean that's the expectation as far as where we are. Between regions, I would say the Western is seeing a little bit more softness overall than the Southeast region. And I don't want to get more specific than that. I think that's granular enough, I think, for the expectations that we're putting in our guidance.

所以我們 - 我們的預期是我們的銷量會下降。這就是我們如何達到 3.7 億美元至 3.9 億美元的範圍。我的意思是，這就是我們所處的期望。在地區之間，我想說西部地區整體上比東南地區更加疲軟。我不想比這更具體。我認為，對於我們在指南中提出的期望，我認為這已經足夠細化了。

Keith, I'll just add to that. That's what makes it hard to predict. If you look at -- like I said in my comments, if you look at the last few months, our order entry in the Southeast, which is almost 75% of our business is up 21%. So we're not -- we're feeling pretty good at this point where we sat. And it just -- if you look out in the entire year, it makes it more cloudy given what we're seeing.

基思，我只是補充一點。這就是難以預測的原因。如果你看看——就像我在評論中說的，如果你看看過去幾個月，我們在東南部的訂單輸入幾乎占我們業務的 75%，增長了 21%。所以我們不是 - 在我們坐的這一點上我們感覺很好。而且它只是 - 如果你在整個一年中向外看，考慮到我們所看到的，它會使它變得更加多雲。

That comes my second question, Jeff, on the order growth. Can you talk more on what products, what reasons? I mean, it's just a really surprising number given the kind of the landscape.

這是我的第二個問題，傑夫，關於訂單增長。你能多談談什麼產品，什麼原因嗎？我的意思是，考慮到這種情況，這真是一個令人驚訝的數字。

Yes. No, it's a combination, like I mentioned, it's in the Southeast, so let's call it Florida, mainly in our PGT brands, CGI brands, Echo brands, New South brands is what we're seeing it. And it's -- we think it's several reasons. One, hurricane awareness. Obviously, we had a hurricane come through Category 4 hit us. So there's a lot of awareness out in the market now, and we're getting a lot of inquiries and a lot of hits on order or online websites regarding that.

是的。不，它是一個組合，就像我提到的，它在東南部，所以我們稱之為佛羅里達，主要是我們的 PGT 品牌、CGI 品牌、Echo 品牌，我們看到的是新南方品牌。這是 - 我們認為這是幾個原因。一，颶風意識。顯然，我們遇到了 4 級颶風襲擊了我們。所以現在市場上有很多意識，我們收到了很多詢問，訂單或在線網站上也有很多點擊。

The stores -- the actual New South stores in the path of the storm, they're upper lower 30% in terms of volume increases. So where the storm hit is even more. So there's awareness. And then secondly, as I mentioned in the last quarter's call, the state of Florida passed this home-hardening tax credit for R&R purchases. So anything that you want to harden your home with, i.e., impact windows and doors, we work with the State of Florida the Governor, Ron DeSantis and the CFO, Jimmy Patronis to make sure those could be tax free for the individual. And we -- for the next 2 years. And we've heard great feedback from that from our dealer base and people we talked to around that.

商店——風暴路徑上的實際新南商店，它們的銷量增長幅度為 30%。所以風暴襲擊的地方就更多了。所以有意識。其次，正如我在上個季度的電話會議中提到的，佛羅里達州通過了這項針對 R&R 購買的家庭硬化稅收抵免。因此，任何您想加固房屋的東西，即衝擊門窗，我們都與佛羅里達州州長 Ron DeSantis 和首席財務官 Jimmy Patronis 合作，以確保個人可以免稅。而我們——在接下來的兩年裡。我們從我們的經銷商群和我們與之交談過的人那裡聽到了很好的反饋。

And then if you think about our lead times have improved dramatically, quite frankly, our operations here at PGT, are on time and in full is running into upper 80s -- compared to last year, it was in the 50s. So we're starting to gain back some share, quite frankly, we lost because of performance. Obviously, people had rather go with an impact leader and that brand. It carries a lot more weight, a lot more options in the market, but we had to perform and we fixed that operational performance issue. So we're starting to actively gain back share that we had lost at the end of 2020 and 2021.

然後，如果您考慮我們的交貨時間已經大大縮短，坦率地說，我們在 PGT 的運營準時並且完全運行到 80 多歲——與去年相比，它是 50 多歲。所以我們開始重新獲得一些份額，坦率地說，我們因為表現而輸了。顯然，人們更願意選擇有影響力的領導者和那個品牌。它承載了更多的重量，市場上有更多的選擇，但我們必須執行並解決了該運營性能問題。因此，我們開始積極奪回我們在 2020 年底和 2021 年底失去的份額。

Our next question will be from Phil Nag of Jefferies.

我們的下一個問題將來自 Jefferies 的 Phil Nag。

As we wait for Mr. Nag to get back, let's go to Mr. Michael Rehau of JPMorgan.

在我們等待 Nag 先生回來的同時，讓我們去找摩根大通的 Michael Rehau 先生。

Just a quick question. Last quarter, you guys talked about how you haven't been approached on price from builders. I'm just wondering if that has changed as we gain more insight on the softer demand drop or I guess, anticipated demand drop? And if so, has it kind of been in line what your expectations would be? Just a little bit more color on that in total.

只是一個簡單的問題。上個季度，你們談到瞭如何沒有從建築商那裡接觸到價格。我只是想知道隨著我們對需求下降的軟性有了更多的了解，或者我猜，預期的需求下降，這種情況是否發生了變化？如果是這樣，它是否符合您的期望？總的來說只是多了一點顏色。

Yes, I'll speak to it. In total, the answer will be no. Have we been approached one-off, yes, but maybe 5% or 10% of our volume. So in total, we haven't given pricing and we're not getting pressure. What we've been simply asked by our builders to do is deliver on time in full. And as long as we can do that and hold price, actually, a couple of builders access just to hold pricing were their supplier choice. So as of now, on the new construction side, I have not received any material impact on giving in pricing.

是的，我會和它談談。總的來說，答案是否定的。我們是否被一次性接觸過，是的，但可能是我們數量的 5% 或 10%。所以總的來說，我們沒有給出定價，我們也沒有受到壓力。我們的建築商只要求我們按時交付。只要我們能做到這一點並保持價格，實際上，一些建築商只是為了保持價格而獲得供應商的選擇。因此，截至目前，在新建築方面，我沒有收到對定價的任何實質性影響。

Got it. And you talked about recently with the recently approved accelerated share repurchase, how strategic acquisition was one potential method used. In this environment, I'm just curious on what's your current criteria and looking for the right acquisition? And what does that pipeline look like right now?

知道了。你最近談到了最近批准的加速股票回購，戰略收購是如何成為一種潛在方法的。在這種環境下，我只是想知道您目前的標準是什麼，並在尋找合適的收購機會？那條管道現在是什麼樣子的？

Yes, good question. That $250 million share repurchase program, I think, makes a clear statement when we think our stock is undervalued and we put a program in place, a plan in place. That plan will literally kick off and start buying shares is Monday. And we think we're way unvalued, so we're going to buy as much as we can in the market that allow based off our trading volumes. That's going to be first priority.

是的，好問題。我認為，當我們認為我們的股票被低估並且我們制定了一個計劃，一個計劃到位時，這個 2.5 億美元的股票回購計劃做出了明確的聲明。該計劃將從字面上開始，並在周一開始購買股票。而且我們認為我們的價值很低，所以我們將根據我們的交易量在市場上盡可能多地購買。這將是第一要務。

And as I look at other acquisitions, I would look for a different, call it, product portfolio type, like say, clad or wood. We don't have that in our portfolio. I would look at geographic diversity and maybe some more Midwest locations we hadn't looked at before. Those are the top criteria I would look at and margin of course. But I'll be clear that our priority is our stock at this point, absent any significant acquisition that would meet those criteria.

當我查看其他收購時，我會尋找不同的產品組合類型，比如包層或木材。我們的投資組合中沒有。我會看看地理多樣性，也許還有一些我們以前沒有看過的中西部地區。這些是我會考慮的首要標準，當然還有利潤。但我很清楚，我們目前的首要任務是我們的股票，沒有任何符合這些標準的重大收購。

Our next question will be from Mr. Phil Ng of Jefferies.

我們的下一個問題將來自 Jefferies 的 Phil Ng 先生。

Guys, can you hear me now?

伙計們，你們現在能聽到我說話嗎？

Yes, we can hear you.

是的，我們能聽到你的聲音。

Okay. It's [Maggie] on for Phil. I guess, first, and sorry if I missed this earlier, I just hopped on the call. But could you talk about looking at 2023, the outlook, what are the biggest uncertainties or swing factors for your end market demand? And what we would need to happen to give you more confidence in providing full-year outlook?

好的。 [Maggie] 替 Phil 上場。我想，首先，對不起，如果我之前錯過了這個，我只是跳上了電話。但您能否談談展望 2023 年的前景，您的終端市場需求最大的不確定性或搖擺因素是什麼？我們需要做什麼才能讓您更有信心提供全年展望？

Yes. Sure, Maggie. One of the reasons why we elected only to give Q1 guidance was really just the change in settlement over the last 90 days. When we started looking at our plan for 2023 and what our expectations were, the expectations were dramatically different, call it, in the December time frame from what they were in early January and then to what they are today. So really what we would look to see is just some stability. So we can have confidence that we understand the dynamics driving the end markets a little bit better than what we do today.

是的。當然，瑪姬。我們選擇只提供第一季度指導的原因之一實際上只是過去 90 天結算的變化。當我們開始審視 2023 年的計劃和我們的期望時，我們發現，在 12 月的時間框架內，期望與 1 月初的期望和今天的期望大不相同。所以我們真正希望看到的只是一些穩定性。因此，我們可以確信，我們比現在更了解推動終端市場的動力。

I think as the year progresses, as we get into Q2, as we move into the April, May time frame, that may exist in. At that time, we may be able to give you full-year guidance or the remaining year guidance for that. But what we would like to see is some stability in the market and just not so much movement in opinion by various prognosticators out there as far as what's happening with the economy and in each of our end markets, be it the new construction market being the R&R market, whatever it may be, just some more stability in that. That will give us more confidence as far as how to forecast the remainder of the year.

我認為隨著時間的推移，隨著我們進入第二季度，隨著我們進入 4 月、5 月的時間框架，這可能會存在。到那時，我們可能會為您提供全年指導或剩餘年度指導那。但我們希望看到的是市場的一些穩定，只是各種預測者對經濟和我們每個終端市場正在發生的事情的看法沒有那麼多變化，無論是新建築市場是R&R 市場，無論它是什麼，都只是更加穩定。這將使我們對如何預測今年剩餘時間更有信心。

And remember, too, what you have to think about from our end is we have different scenarios and different planning actions should the economy turn one way versus continue to be stable versus being more robust, right? So we have to be pretty agile on our feet. And what I would suggest and what I think is what we have said long term is we expect this business to be an upper teens EBITDA margin business going forward. So that would be the expectation is that we would continue to maintain this business to be that upper teens EBITDA margin business.

還要記住，從我們的角度來看，你必須考慮的是，如果經濟轉向單向、繼續穩定或更加強勁，我們有不同的情景和不同的計劃行動，對吧？所以我們必須非常敏捷地站起來。我的建議和我認為我們長期所說的是，我們預計這項業務將成為未來 EBITDA 利潤率較高的業務。因此，我們的期望是，我們將繼續維持這項業務，使其成為 EBITDA 利潤率較高的業務。

And I would just add, we've already been flexible in terms of cost reduction initiatives. We started that at the end of the fourth quarter when we saw some order pattern changes. To date, we've had a reduction in force of a 100 -- roughly a 147 people and attrition of another 100. So we're down about 240 people over the last, call it, 3 months. So we're watching our costs. We're only investing where there's a great return and we definitely feel strong about holding upper teen margins over the coming year.

我只想補充一點，我們在降低成本的舉措方面已經很靈活了。當我們看到一些訂單模式發生變化時，我們在第四季度末開始這樣做。迄今為止，我們已經減少了 100 人——大約 147 人，另外 100 人自然減員。所以我們在過去 3 個月裡減少了大約 240 人。所以我們正在關注我們的成本。我們只在有豐厚回報的地方進行投資，我們對在來年保持較高的利潤率感到非常強烈。

Okay. Got it. Yes, that definitely makes sense. And then I guess, looking at 4Q, the operational headwinds from the hurricane disruption and the ransomware issue. The ultimate impact on revenues were lower than you had initially forecasted. Can you just talk about how those dynamics played out in the quarter? And if there's any expected carryover impact into 2023?

好的。知道了。是的，這絕對有道理。然後我想，從第四季度來看，颶風中斷和勒索軟件問題給運營帶來了不利影響。對收入的最終影響低於您最初的預測。你能談談這些動態在本季度是如何發揮作用的嗎？如果對 2023 年有任何預期的結轉影響？

Yes. So the dynamics in the quarter were for each of those, we lost order entry for a period of time and for us to recover and get back up. The hurricane specifically disrupted our production and our ability to produce. So that was one where we lost that revenue, and that had to be made up to the degree that we could. The ransomware attack was basically shut it down from an order entry perspective so we weren't able to recover. The good news is we've made dramatic changes. Our operating team here in the Southeast region did a wonderful job and go as Jeff said, go back to rates where we were prior to the storm. So we're making that back up.

是的。因此，本季度的動態針對其中的每一個，我們在一段時間內丟失了訂單輸入，然後我們恢復並重新啟動。颶風特別破壞了我們的生產和生產能力。所以那是我們失去收入的地方，必須盡可能彌補。從訂單輸入的角度來看，勒索軟件攻擊基本上將其關閉，因此我們無法恢復。好消息是我們已經做出了巨大的改變。我們在東南地區的運營團隊做得非常出色，正如 Jeff 所說，恢復到風暴前的費率。所以我們正在備份。

With respect to order entry, we are back online, and we're moving forward from that perspective. So there's no continuing effect from either of those. They were both related to the quarter and our expectation is that as we move into Q1, as long as we continue to deliver, as Jeff said, from an operational perspective, from an all-time and full, I think that we're going to continue to see a dealer base that is pleased with our performance and continue to -- we will continue to be the supplier of choice.

關於訂單輸入，我們重新上線，我們正在從這個角度向前邁進。所以這兩者都沒有持續的影響。它們都與本季度有關，我們的期望是，隨著我們進入第一季度，只要我們繼續像 Jeff 所說的那樣，從運營的角度，從歷史和完整的角度交付，我認為我們會繼續看到對我們的表現感到滿意的經銷商基礎，並繼續——我們將繼續成為首選供應商。

This concludes our question-and-answer session. I'd like to turn the call back over to management for closing remarks.

我們的問答環節到此結束。我想將電話轉回管理層以作結束語。

Thank you. We appreciate your participation today on our fourth quarter and full year 2022 earnings call. We look forward to your continued participation and support of the company, and we will talk to you again on our first quarter 2023 earnings call in May. Thank you again.

謝謝。感謝您今天參加我們的第四季度和 2022 年全年財報電話會議。我們期待您繼續參與和支持公司，我們將在 5 月份的 2023 年第一季度財報電話會議上再次與您交談。再次感謝你。

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

謝謝。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。