(PGTI) 2023 Q1 法說會逐字稿

Good morning, and welcome to the PGT Innovations First Quarter 2023 Earnings Conference Call. (Operator Instructions) I'd like to turn the conference over to PGT Innovations' Senior Vice President of Corporate Development and Treasurer, Brad West. Please go ahead, sir.

早上好，歡迎來到 PGT Innovations 2023 年第一季度收益電話會議。 （操作員說明）我想將會議轉交給 PGT Innovations 的企業發展高級副總裁兼財務主管 Brad West。請繼續，先生。

Thank you. Good morning, and welcome to the PGT Innovations' First Quarter 2023 Investor Conference Call.

謝謝。早上好，歡迎來到 PGT Innovations 2023 年第一季度投資者電話會議。

With me on the call today are our President and CEO, Jeff Jackson; and our Interim Chief Financial Officer and Vice President of Corporate Finance; Craig Henderson. 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我們的總裁兼首席執行官傑夫傑克遜；以及我們的臨時首席財務官兼企業財務副總裁；克雷格亨德森。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，在幻燈片 3 中，請注意我們使用非 GAAP 財務指標報告結果，我們認為這提供了額外的信息，以幫助投資者比較報告期之間的績效。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, and good morning, everyone. And thanks for joining us for today's call. I'm very pleased with the start of our year and want to thank our team members and supplier partners for executing well in a challenging, dynamic environment. Following our strong finish to 2022, we delivered a record first quarter despite continued macroeconomic uncertainty, including higher interest rates and persistent inflation.

謝謝你，布拉德，大家早上好。感謝您加入我們今天的電話會議。我對今年的開始感到非常高興，並感謝我們的團隊成員和供應商合作夥伴在充滿挑戰、充滿活力的環境中表現出色。在 2022 年取得強勁成績後，儘管宏觀經濟持續存在不確定性，包括更高的利率和持續的通貨膨脹，但我們在第一季度取得了創紀錄的成績。

Turning to Slide 4. Despite a slowing national economy, we were able to increase revenue to $377 million, grow adjusted EBITDA to $7 million and expand adjusted EBITDA margins by 210 basis points compared to prior year.

轉到幻燈片 4。儘管國民經濟放緩，但我們能夠將收入增加到 3.77 億美元，將調整後的 EBITDA 增加到 700 萬美元，並將調整後的 EBITDA 利潤率比上一年擴大 210 個基點。

Our repair and remodeling channels proved strong in the first quarter, and we expect that trend to continue into the second quarter based on our current order backlog and continued strong demand trends in the second quarter. The repair and remodeling channel nationally is benefiting from record home equity and homeowners deciding to stay amidst high mortgage rates, and PGTI has benefited from increased hurricane awareness as a result of Hurricane Ian, which made landfall in Southwest Florida in late September of 2022.

我們的維修和改造渠道在第一季度表現強勁，根據我們目前的訂單積壓和第二季度持續強勁的需求趨勢，我們預計這一趨勢將持續到第二季度。全國的維修和改造渠道受益於創紀錄的房屋淨值和房主決定留在高抵押貸款利率中，而 PGTI 受益於颶風伊恩的颶風意識增強，該颶風於 2022 年 9 月下旬登陸佛羅里達州西南部。

In both business segments, we increased our delivery performance, improved our quality and reduced our lead times to dealers and delivered EBITDA margin growth versus the prior year through strong operational execution and cost containment measures. We continue to show strong execution regardless of the obstacle, whether it's a major hurricane, a ransomware incident or continued macroeconomic headwinds as we drive to execute our strategic plan.

在這兩個業務領域，我們通過強有力的運營執行和成本控制措施，提高了交付績效、提高了質量並縮短了對經銷商的交貨時間，並實現了 EBITDA 利潤率與上一年相比的增長。在我們執行戰略計劃的過程中，無論遇到什麼障礙，無論是大颶風、勒索軟件事件還是持續的宏觀經濟逆風，我們都會繼續表現出強大的執行力。

Next on Slide 5. Let's take a closer look at the first quarter, our sales trends and key initiatives. In the first quarter, we generated total revenue of $377 million during the quarter. Sales in our Southeast segment were $282 million, an increase of $10 million versus the first quarter of 2022. Sales grew 4% versus the prior year quarter and grew 16% sequentially from the fourth quarter.

接下來是幻燈片 5。讓我們仔細看看第一季度、我們的銷售趨勢和關鍵舉措。第一季度，我們在本季度創造了 3.77 億美元的總收入。我們東南部的銷售額為 2.82 億美元，比 2022 年第一季度增加 1000 萬美元。銷售額比上年同期增長 4%，比第四季度環比增長 16%。

Our Southeast brands have always served both the R&R and new construction markets well, and our year-over-year growth was fueled by continued strength in the R&R markets. Orders in the Southeast grew $39 million or 15% from the prior year quarter, driving the increase in total company order backlog.

我們的東南品牌一直很好地服務於 R&R 和新建築市場，我們的同比增長得益於 R&R 市場的持續強勁。東南部的訂單比去年同期增長 3900 萬美元或 15%，推動了公司總訂單積壓的增加。

We recently announced a new initiative, rebranding our hallmark PGT Custom Windows and Doors. As a leader in high-performance glass technology for windows and doors, we have expanded positioning to allow specialized products for energy efficiency, sound reduction and security to be included and introduced into the future.

我們最近宣布了一項新計劃，重新命名我們標誌性的 PGT 定制門窗。作為高性能門窗玻璃技術的領導者，我們擴大了定位，將能效、隔音和安全方面的專業產品納入並引入未來。

Our new tagline, [best of freedom] of PGT, captures the value and simplicity we bring to daily life. The rebranding is about giving consumers control and peace of mind over external forces like extreme weather, home security and increasing noise pollution.

我們的新標語，[best of freedom] of PGT，抓住了我們為日常生活帶來的價值和簡單。品牌重塑是為了讓消費者能夠控制和安心應對極端天氣、家庭安全和日益嚴重的噪音污染等外部因素。

Sales in our Western segment were $95 million, an increase of $8 million versus prior year. Out West, we were impacted by multiple storms in California and Arizona, resulting in a reduction of construction activity early in the quarter. Our Western sentiment is also more sensitive to movements in new construction with the Western markets leading the nation in declining new home construction activity. Western segment sales were up 9% versus prior year first quarter on strong execution and low lead times.

我們西區的銷售額為 9500 萬美元，比上年增加 800 萬美元。在西部，我們受到加利福尼亞州和亞利桑那州的多場風暴的影響，導致本季度初建築活動減少。我們的西方情緒也對新建築的動向更加敏感，因為西方市場在新屋建築活動下降方面領先全國。由於強大的執行力和較短的交貨時間，西部地區的銷售額比去年第一季度增長了 9%。

Organic orders in the Western segment were 16% below prior year first quarter. Our Martin acquisition, which closed in late 2022, continues to be integrated, and we are aggressively pursuing sales synergies we believe exist with the premium garage door and legacy business. We expanded our EBITDA margins by 210 basis points, driven by strong operational execution, pricing actions offsetting material and wage inflation and cost containment measures amidst continued macroeconomic uncertainty.

西部地區的有機訂單比去年第一季度低 16%。我們於 2022 年底完成的對 Martin 的收購將繼續整合，我們正在積極尋求我們認為存在於高級車庫門和傳統業務中的銷售協同效應。我們將 EBITDA 利潤率提高了 210 個基點，這得益於強勁的運營執行力、抵消了材料和工資通脹的定價行為以及在持續的宏觀經濟不確定性中採取的成本控制措施。

While new construction starts and orders have declined versus prior year, both business segments benefited from strong brands such as PGT, Eco and Anlin that all have seen and are continuing to see demand growth in repair and remodeling channels.

雖然新開工和訂單與去年相比有所下降，但這兩個業務部門都受益於 PGT、Eco 和 Anlin 等強勢品牌，這些品牌已經並將繼續看到維修和改造渠道的需求增長。

Our focus on quality and delivery has also contributed to strong growth in our Southeast region aluminum demand, with our aluminum pipeline continuing to increase into the second quarter, as we work to drive higher levels of throughput and recapture market share. Our commitment to innovation, which drives us to deliver products with the features, performance and value demanded by our builders and customers, was highlighted by our important partnership to evolve glass technology. We previously announced our exclusive right to manufacture and sell new and innovative glass products. Thin triple insulated glass, which we are branding Triple Diamond and our branded diamond glass impact-resistant glass.

我們對質量和交付的關注也促進了我們東南地區鋁需求的強勁增長，隨著我們努力推動更高水平的吞吐量和重新奪回市場份額，我們的鋁管道在第二季度繼續增加。我們對創新的承諾促使我們提供具有我們的建築商和客戶所要求的特性、性能和價值的產品，我們在發展玻璃技術方面的重要合作夥伴關係突顯了這一點。我們之前宣布了我們製造和銷售新型創新玻璃產品的獨家權利。薄型三層絕緣玻璃，我們將其品牌化為 Triple Diamond 和我們品牌化的鑽石玻璃抗衝擊玻璃。

As discussed on our last call, PGTI will be the first manufacturer in the U.S. window and door market to offer thin triple insulated glass and diamond blast impact-resistant glass units. We believe that even a basic window can and should work harder, and we are uniquely positioned to bring these new products to the U.S. consumer. Benefits from our new glass technology include windows that are clear, more energy efficient, easier to install and impact resistant, helping make buildings more sustainable and comfortable.

正如我們在上次電話會議上討論的那樣，PGTI 將成為美國門窗市場上第一家提供薄型三重絕緣玻璃和金剛石噴砂抗衝擊玻璃單元的製造商。我們相信，即使是一個基本的窗口也可以而且應該更加努力地工作，我們具有獨特的優勢，可以將這些新產品帶給美國消費者。我們新玻璃技術的優勢包括窗戶更透明、更節能、更易於安裝和抗衝擊，有助於使建築物更具可持續性和舒適性。

Our partnership with Corning Architectural Technical Glass to produce next-generation window applications leads to more sustainable, energy-efficient windows and doors. Progress is underway. We have placed orders for new equipment to produce diamond glass for select PGT Innovations brands later this year, and we'll be producing triple diamond glass for other window and door manufacturers in early 2024. Recently, we also announced our exclusive relationship with Truist Service Finance for consumer financing in our dealer channel. We are very excited about this new program, allowing us to offer new financing options for our dealers. We believe this partnership will make replacement windows and doors more attainable for consumers with financing options that fit their specific needs.

我們與 Corning Architectural Technical Glass 合作生產下一代窗戶應用，從而打造更可持續、更節能的門窗。進展正在進行中。今年晚些時候，我們已經訂購了新設備來為精選的 PGT Innovations 品牌生產金剛石玻璃，我們將在 2024 年初為其他門窗製造商生產三層金剛石玻璃。最近，我們還宣布了與 Truist Service 的獨家合作關係在我們的經銷商渠道中為消費者融資提供融資。我們對這項新計劃感到非常興奮，它使我們能夠為經銷商提供新的融資選擇。我們相信，這種合作關係將使消費者更容易獲得更換門窗的機會，並提供適合其特定需求的融資選擇。

Our order backlog was $236 million at the end of the quarter, up slightly from the fourth quarter. Order backlog is of similar size to date as demand has remained roughly in line with our increased production capacities. As we have previously disclosed, our Board unanimously approved the adoption of a rights plan in response to the accumulation of PGT Innovations shares by a strategic investor.

本季度末我們的訂單積壓為 2.36 億美元，略高於第四季度。迄今為止，訂單積壓的規模相似，因為需求與我們增加的生產能力大致保持一致。正如我們之前披露的那樣，我們的董事會一致批准通過一項供股計劃，以應對戰略投資者增持 PGT Innovations 的股份。

We remain committed to engaging in constructive dialogue with all our investors, and we welcome their perspectives. We also want to ensure all investors are able to realize the full long-term value of their investment and receive fair and equal treatment, which is what the rights plan is designed to do.

我們仍然致力於與所有投資者進行建設性對話，我們歡迎他們的觀點。我們還希望確保所有投資者都能實現其投資的全部長期價值，並獲得公平和平等的待遇，這正是權利計劃的目的所在。

We are not actively pursuing a strategic alternative at this time and are executing on our strategic plan to grow shareholder value over the long term as evidenced by our record 2022 results and our strong first quarter. We are always open to explore opportunities to maximize shareholder value. We do not believe our current trading range reflects the long-term value of the company. To that end, we have executed on our $250 million share repurchase program.

我們目前沒有積極尋求戰略替代方案，而是正在執行我們的戰略計劃，以長期增加股東價值，我們創紀錄的 2022 年業績和強勁的第一季度就證明了這一點。我們始終樂於探索最大化股東價值的機會。我們認為我們目前的交易區間不能反映公司的長期價值。為此，我們執行了 2.5 億美元的股票回購計劃。

Now I'd like to turn the call over to Craig Henderson to review our first quarter results in greater detail. Craig?

現在我想把電話轉給克雷格亨德森來更詳細地回顧我們第一季度的業績。克雷格？

Thank you, Jeff. Turning to Slide 6. Consolidated net sales were $377 million in the first quarter, up 5% from the prior year first quarter. The year-over-year increase in net sales was driven by 3% organic growth from our legacy businesses. Our Southeast segment sales grew 4% from the prior year first quarter, while our Western segment sales were up 9% from the prior year. During the first quarter, our sales breakdown was 60% R&R and 40% new construction.

謝謝你，傑夫。轉到幻燈片 6。第一季度合併淨銷售額為 3.77 億美元，比去年第一季度增長 5%。淨銷售額的同比增長是由我們傳統業務 3% 的有機增長推動的。我們東南部的銷售額比去年第一季度增長了 4%，而我們的西部部銷售額比上年增長了 9%。第一季度，我們的銷售明細為 60% 的 R&R 和 40% 的新建築。

Organic R&R sales grew 4% compared to the first quarter of 2022, driven by the strength of our PGT and Echo brands. Organic new construction sales were flat to the prior year first quarter. Gross profit was $149 million in the first quarter and rose 11% compared to the prior year first quarter.

受我們 PGT 和 Echo 品牌實力的推動，有機 R&R 銷售額與 2022 年第一季度相比增長了 4%。有機新建築銷售額與去年第一季度持平。第一季度毛利潤為 1.49 億美元，與去年同期相比增長 11%。

Our first quarter results were driven by continued solid performance from our operating teams, pricing actions offsetting material and wage inflation and additional cost containment measures. Adjusted selling, general and administrative expenses increased 3% in the first quarter compared to the prior year, driven by increased marketing investments related to the International Builders' Show.

我們第一季度的業績是由我們的運營團隊持續穩健的表現、抵消材料和工資通脹的定價行動以及額外的成本控制措施推動的。與去年同期相比，第一季度調整後的銷售、一般和管理費用增加了 3%，這是由於與國際建築商展相關的營銷投資增加所致。

We're pleased to have delivered adjusted EBITDA of $70 million, an increase of 18% versus the prior year first quarter. This year-over-year increase was driven by operational efficiencies, the impact of pricing actions offsetting material and wage inflation and, to a lesser extent, increased sales.

我們很高興在第一季度實現了 7000 萬美元的調整後 EBITDA，比去年同期增長 18%。這一同比增長是由運營效率、定價行動抵消材料和工資通脹的影響以及在較小程度上增加的銷售額推動的。

Our non-GAAP adjustments for the quarter included approximately $3 million of insurance recovery gain related to the wind down of the commercial portion of our NewSouth acquisition, partially offset by onetime costs related to our Anlin acquisition and executive severance costs totaling $1.7 million. Our tax expense in the quarter came in at 24.6%. We reported adjusted net income of $34 million or $0.56 per diluted share compared to $25 million or $0.42 per diluted share in the first quarter of 2022.

我們本季度的非 GAAP 調整包括與 NewSouth 收購的商業部分結束相關的大約 300 萬美元的保險追償收益，部分被與我們的 Anlin 收購相關的一次性成本和總計 170 萬美元的高管遣散費所抵消。我們本季度的稅收支出為 24.6%。我們報告調整後的淨收入為 3400 萬美元或攤薄後每股收益 0.56 美元，而 2022 年第一季度為 2500 萬美元或攤薄後每股收益 0.42 美元。

Turning now to our balance sheet on Slide 7. At the end of the quarter, we had net debt of $606 million and total liquidity of $211 million. As of the end of the first quarter, we had a trailing 12-month bank covenant net debt to adjusted EBITDA ratio of 2.2x. We generated operating cash flow of $24 million in the first quarter. We also invested $12 million in capital expenditures, mostly related to cost reduction and capacity expansion initiatives that will enable us to improve our profitability in 2023 and beyond. During the first quarter, we began execution of our 3-year $250 million share repurchase program and returned $25.6 million to shareholders through the repurchase of 1.2 million shares.

現在轉到幻燈片 7 上的資產負債表。本季度末，我們的淨債務為 6.06 億美元，流動資金總額為 2.11 億美元。截至第一季度末，我們過去 12 個月的銀行契約淨債務與調整後 EBITDA 之比為 2.2 倍。我們在第一季度產生了 2400 萬美元的運營現金流。我們還投資了 1200 萬美元用於資本支出，主要與降低成本和產能擴張計劃有關，這將使我們能夠在 2023 年及以後提高盈利能力。第一季度，我們開始執行為期 3 年的 2.5 億美元股票回購計劃，並通過回購 120 萬股股票向股東返還 2560 萬美元。

Moving on to our guidance on Slide 8. The continued macro uncertainty will again limit our sales and EBITDA outlook to the next quarter. For the second quarter, we anticipate revenue to be in the range of $380 million to $400 million. We also anticipate adjusted EBITDA to be in the range of $70 million to $75 million. Our strong demand trends and our continued strong operations execution, along with cost containment, gives us confidence that we will be able to continue to deliver strong profits in this uncertain market.

繼續我們對幻燈片 8 的指導。持續的宏觀不確定性將再次限制我們對下一季度的銷售和 EBITDA 前景。對於第二季度，我們預計收入將在 3.8 億美元至 4 億美元之間。我們還預計調整後的 EBITDA 將在 7000 萬至 7500 萬美元之間。我們強勁的需求趨勢和我們持續強勁的運營執行力，以及成本控制，使我們相信我們將能夠在這個不確定的市場中繼續提供強勁的利潤。

In order to execute on our new glass operations, we expect to spend $35 million in 2023 on new equipment and facilities. This spend will be in addition to the normal 3% to 4% of sales for our run rate capital spending. This higher level of spend will ensure that our new glass operations were launched successfully. Despite this increased investment, we will continue to target leverage at 2 to 3x EBITDA.

為了執行我們新的玻璃業務，我們預計 2023 年將在新設備和設施上花費 3500 萬美元。這筆支出將不包括正常的 3% 到 4% 的銷售額，用於我們的運行率資本支出。這一更高水平的支出將確保我們的新玻璃業務成功啟動。儘管增加了投資，但我們將繼續以 2 至 3 倍的 EBITDA 為槓桿目標。

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

現在我想把電話轉回給傑夫。傑夫？

Thanks, Craig. I'll conclude today with a summary of the current market conditions, and while we believe PGT Innovations is in an excellent position to continue creating long-term value for our shareholders.

謝謝，克雷格。我今天將總結當前的市場狀況，同時我們相信 PGT Innovations 處於繼續為股東創造長期價值的絕佳位置。

While the underlying macroeconomic uncertainties continue, home buyers and homeowners appear to be adjusting to the new reality aided by moderating home prices and wage growth. Both the new construction and repair and remodeling channels are seeing positive signs versus the fourth quarter of 2022. Long term, industry sources including John Burns, suggest that there are several macroeconomic trends that will support growth in the new construction and R&R markets over the coming years. These trends include a growing adult population, especially millennials, to drive 12.7 million new home starts to be formed.

雖然潛在的宏觀經濟不確定性繼續存在，但購房者和房主似乎正在適應房價和工資增長放緩的新現實。與 2022 年第四季度相比，新建築以及維修和改造渠道都出現了積極跡象。從長遠來看，包括 John Burns 在內的行業消息人士表示，未來有幾種宏觀經濟趨勢將支持新建築和 R&R 市場的增長年。這些趨勢包括不斷增長的成年人口，尤其是千禧一代，以推動 1270 萬個新家庭開始形成。

Recent reports indicated that 66% of millennials plan to buy a home within the next 2 years. The need for an additional 17 million housing units to meet demographic demand, 24 million homes will reach prime remodeling years by 2027. 85% of mortgage borrowers are locked in with mortgage rates below 5%. The average homeowner has an all-time high of $361,000 in equity in their homes.

最近的報告表明，66% 的千禧一代計劃在未來 2 年內購房。需要額外的 1700 萬套住房以滿足人口需求，到 2027 年將有 2400 萬套房屋達到最佳改造年限。85% 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 361,000 美元的房屋淨值，創歷史新高。

The Inflation Reduction Act introduced major changes to the federal incentives for residential energy-efficient upgrades through 2032. Our new glass technology will enable homeowners to qualify for these incentives. Our Florida brands have the added 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.

《降低通貨膨脹法案》對 2032 年前住宅節能升級的聯邦激勵措施進行了重大修改。我們的新玻璃技術將使房主有資格獲得這些激勵措施。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。

Turning to Slide 9. PGT Innovations is well positioned to take advantage of this long-term trends and see a greater benefit than others in our space. Our strategy is to focus on markets where demographic trends tend to be more favorable than the national average.

轉到幻燈片 9。PGT Innovations 處於有利地位，可以利用這一長期趨勢，並比我們所在領域的其他公司看到更大的利益。我們的策略是專注於人口趨勢往往比全國平均水平更有利的市場。

First, we are a national leader with an outstanding portfolio of brands that we have strengthened over the past few years. We are executing on our growth strategy, including expansion in the adjacent building product categories to complement our existing portfolio of window and door brands.

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，包括擴展相鄰的建築產品類別，以補充我們現有的門窗品牌組合。

Our products and impact-resistant and indoor/outdoor living markets continue to gain traction. We service geographies with strong population growth. Second, the diversification of our product portfolio continues to expand through acquisitions and new product development, which further facilitates a balanced portfolio growth in both the new construction and the R&R channels.

我們的產品以及抗衝擊和室內/室外生活市場繼續受到關注。我們服務於人口增長強勁的地區。其次，我們的產品組合通過收購和新產品開發繼續多元化，進一步促進新建築和 R&R 渠道的產品組合均衡增長。

Third, operational improvements in capital investments have increased our capacity, which has helped us meet our demands and deliver margin expansion. Strong free cash flow provides options to reinvest in the business and return capital to our shareholders. Fourth, our ongoing investments in innovation, new product development and talent help us provide customers with innovative premium products to meet their changing needs.

第三，資本投資的運營改進提高了我們的產能，這有助於我們滿足需求並實現利潤率增長。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。第四，我們在創新、新產品開發和人才方面的持續投資幫助我們為客戶提供創新的優質產品，以滿足他們不斷變化的需求。

Lastly, we are committed to increasing shareholder value through improved profitability and returning capital to our shareholders through our share repurchase program. We believe PGT Innovations is in a great position to weather the current environment and are working to build a stronger foundation for the next level of growth and continue to create long-term value for our shareholders and customers. In addition, we believe our current trading range does not properly value the long-term potential shareholder value for PGT Innovations' shareholders.

最後，我們致力於通過提高盈利能力來增加股東價值，並通過我們的股票回購計劃向股東返還資本。我們相信 PGT Innovations 能夠很好地應對當前環境，並正在努力為下一階段的增長奠定更堅實的基礎，並繼續為我們的股東和客戶創造長期價值。此外，我們認為我們目前的交易範圍沒有正確評估 PGT Innovations 股東的長期潛在股東價值。

To that end, we are returning capital to our shareholders through the share repurchase program, and we'll continue to execute on this program over the 3-year life of the program. I want to thank our shareholders, our team members, channel partners and suppliers for their continued support.

為此，我們將通過股票回購計劃向股東返還資本，我們將在該計劃的 3 年生命週期內繼續執行該計劃。我要感謝我們的股東、我們的團隊成員、渠道合作夥伴和供應商一直以來的支持。

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

這時候，讓我們開始問答環節。操作員？

(Operator Instructions) And this morning's first question comes from Keith Hughes with Truist Securities.

（操作員說明）今天早上的第一個問題來自 Truist Securities 的 Keith Hughes。

This is Jonathan Bettenhausen on for Keith. So you're guiding revenue down a bit year-over-year for the second quarter, but it looks like new orders maybe on a net basis across the business were up in the first quarter. Could you maybe walk us through how long it takes for the new orders to flow to the top line?

這是 Keith 的 Jonathan Bettenhausen。所以你指導第二季度的收入同比略有下降，但看起來第一季度整個業務的新訂單可能在淨基礎上有所增加。您能否向我們介紹一下新訂單流向頂線需要多長時間？

Yes, great question. We are guiding down slightly, and it's just -- it's very tough in this current market. That's why we're only limiting our guidance again in the second quarter.

是的，很好的問題。我們正在略微向下引導，這只是 - 在當前市場上非常艱難。這就是為什麼我們只在第二季度再次限制我們的指導。

I'll give you an example. In April, we're actually up year-over-year as we closed April. And so it usually takes, depending on which business unit you're talking about. And depending on the lead time of that product, anywhere from 4 at a low end to a high end of, say, 12 weeks to fully bake in different order patterns we see across our brands.

我給你舉個例子。 4 月份，當我們關閉 4 月份時，我們實際上同比增長。因此通常需要，具體取決於您所談論的業務部門。並且根據該產品的交貨時間，從低端的 4 周到高端的任何地方，比如 12 週，以我們在我們的品牌中看到的不同訂單模式完全烘烤。

Yes. And last year, Jonathan, the Western business unit had a significant increase from Q1 to Q2, given the weather coming out of the first quarter. Their backlog is reduced. While we're seeing demand trends improving in the West and the demand trends in the Southeast are continuing -- in the Southeast continuing very strong, just converting those to actual shipments is really kind of causing the variance there. But steady state coming out of Q1 into Q2, very solid trends, and we expect to be able to continue that going forward.

是的。去年，考慮到第一季度的天氣，西部業務部門喬納森從第一季度到第二季度都有顯著增長。他們的積壓工作減少了。雖然我們看到西方的需求趨勢正在改善，而東南部的需求趨勢仍在繼續——在東南部，需求趨勢仍然非常強勁，只是將這些轉化為實際出貨量確實會造成那裡的差異。但是從第一季度到第二季度的穩定狀態，非常穩固的趨勢，我們希望能夠繼續向前發展。

Yes. And I'll just tag on to that. Actually, after April's close, we actually added $4 million to our backlog. So again, still very positive on our guidance in the quarter.

是的。我會繼續說下去。實際上，在 4 月結束後，我們的積壓訂單實際上增加了 400 萬美元。再次重申，我們對本季度的指導意見仍然非常樂觀。

That's helpful. And just as a follow-up, can you give us an idea maybe just in the Southeast, the breakout of impact-resistant versus the nonimpact-resistant windows?

這很有幫助。作為後續行動，您能否給我們一個想法，也許就在東南部，抗衝擊窗戶與非抗衝擊窗戶的突破？

Sure. Overall, from a company perspective, it's about 60-40 impact, nonimpact. It'd be much higher in the Southeast.

當然。總體而言，從公司的角度來看，影響大約為 60-40，沒有影響。東南會高很多。

And the next question comes from Phil Ng with Jefferies.

下一個問題來自 Jefferies 的 Phil Ng。

This is Maggie on for Phil. I guess starting, Jeff, it was helpful for you to kind of walk through how you're thinking about long-term demand drivers for the business, but just zeroing in on 2Q and 2023. Can you talk about what you're seeing across your different end markets?

這是菲爾的瑪吉。我想開始，Jeff，這對您了解您如何考慮業務的長期需求驅動因素很有幫助，但只關注第二季度和 2023 年。你能談談你所看到的嗎您的不同終端市場？

You've talked about strength in R&R channels. Do you actually see that trending positive in 2023? And then just volumes in new construction and the Western segment, if you could just help us think about how those are trending this year.

您談到了 R&R 渠道的優勢。你真的看到 2023 年的趨勢是積極的嗎？然後是新建築和西部部分的數量，如果你能幫助我們考慮一下今年的趨勢如何。

Great question. And yes, the R&R market, we do see signs of it trending positive this year. As we look both, obviously, here in the Southeast, mainly Florida, that's really an incredible driver. Given the impact of Hurricane Ian, we've had heightened awareness.

很好的問題。是的，R&R 市場，我們確實看到了它今年呈積極趨勢的跡象。顯然，在東南部，主要是佛羅里達州，我們都看到了這兩個地方，這確實是一位了不起的車手。鑑於颶風伊恩的影響，我們提高了認識。

Also, given the federal -- the state tax credit, you don't have to pay sales tax for repairing their home with R&R product has been another big driver for us. As we look out West, again, the R&R market started off soft for our Anlin business, but that was mainly weather related. Everyone knows that California and the out West suffered a lot of rainfall and snow as well.

此外，考慮到聯邦 - 州稅收抵免，您不必為使用 R&R 產品修理房屋支付銷售稅，這對我們來說是另一個重要推動力。放眼西部，我們安林業務的 R&R 市場開始疲軟，但這主要與天氣有關。眾所周知，加利福尼亞州和西部地區也遭受了大量的降雨和降雪。

So that really slowed up January and into February for that particular brand. But March was double-digit growth. So we've seen that R&R business pick up as the weather has improved. So our overall R&R business, we feel very confident, comfortable with as we look into this year. And then obviously, if we go into the next quarter as well.

因此，對於該特定品牌而言，這確實放慢了 1 月和 2 月的速度。但三月份是兩位數的增長。因此，我們看到隨著天氣的好轉，R&R 業務有所回升。因此，我們對今年的整體 R&R 業務感到非常自信和滿意。然後很明顯，如果我們也進入下一個季度。

In terms of new construction, that has its ups and downs. So we've seen -- it started going down at the end of last year and it kind of worried us somewhat, so we limited our guidance. As we got into the first quarter, we've seen a bump in that for certain brands, especially within the Florida market. Still out West is tough. New construction is definitely more of a challenge. But into the Florida market, which is 70-plus percent of our business, we've seen a good bump in the new construction in the first quarter and into April. Craig, do you have anything you want to add?

就新建築而言，這有其起伏。所以我們已經看到——它在去年年底開始下降，這讓我們有點擔心，所以我們限制了我們的指導。當我們進入第一季度時，我們看到某些品牌的銷量有所上升，尤其是在佛羅里達市場。西部仍然很艱難。新建築絕對是一個更大的挑戰。但在占我們業務 70% 以上的佛羅里達市場，我們看到第一季度和 4 月份的新建築出現了良好的增長。克雷格，你有什麼要補充的嗎？

Yes. No. I mean the specific numbers, R&R for the business was up 17%, stronger in the Southeast versus the West and the new construction business was down 7%, but it was actually up 8% in the Southeast.

是的。不，我的意思是具體數字，業務的 R&R 增長了 17%，東南部比西部強，新建築業務下降了 7%，但實際上東南部增長了 8%。

And so you really see that the West is impacted by that new construction given the mix of business that we have out there. So things are trending positively.

因此，鑑於我們在那裡的業務組合，您真的會看到西方受到新建築的影響。所以事情的趨勢是積極的。

And I will say this, given what we've seen in both new construction and R&R, we don't see any change in our, call it, historical seasonality or patterns. So in other words, even though the second quarter did go down in terms of sequential year-over-year comparison, we think our third quarter is going to be historically a little better than our second quarter, which we know based off the patterns we're seeing now.

我會這麼說，鑑於我們在新建築和 R&R 中看到的情況，我們認為我們的歷史季節性或模式沒有任何變化。所以換句話說，即使第二季度在連續同比比較方面確實有所下降，但我們認為我們的第三季度在歷史上會比我們的第二季度好一點，我們知道這是基於我們的模式現在看到了。

And of course, fourth quarter because you go into the Thanksgiving and Christmas holidays, tends to trail off a little. So we don't see any change in what you've seen historically from a performance -- sales performance every quarter.

當然，第四季度因為你進入感恩節和聖誕節假期，往往會有所下降。因此，我們看不到您從歷史上看到的業績有任何變化——每個季度的銷售業績。

Okay. That was all really helpful. And then on margins, 1Q came in ahead of your initial guide. And I think the 2Q guide kind of implies they hold up at a similar level.

好的。這一切都非常有幫助。然後在利潤率上，第一季度領先於您的初始指南。而且我認為 2Q 指南有點暗示它們保持在相似的水平。

Can you just talk about what's driving the strength even with your guidance for sales down in 2Q? And then how we should think about margins progressing through the year?

即使您對第二季度的銷售額有所下降，您能否談談推動實力的因素？然後我們應該如何考慮全年的利潤率增長？

Yes. Great question again. First, I'm incredibly proud of the team across the organization. Everyone is executing incredibly well. Every operational unit is performing at its peak. The proactive cost reduction measures we put in place in Q4 of last year, if you recall, was helpful.

是的。又是個好問題。首先，我為整個組織的團隊感到無比自豪。每個人都表現得非常好。每個運營單位都處於最佳狀態。如果您還記得的話，我們在去年第四季度實施的主動成本削減措施很有幫助。

We saw the slowdown coming, so we adjusted cost, our cost base accordingly, and we're leveraging that fixed cost base very well. And we think we're going to continue to do that. If you look into the year, I think I'm pretty comfortable of saying our full year EBITDA margin percent is going to be very close to what you're seeing, call it, 17%, 18%, you can call it 18% for the year.

我們看到經濟放緩即將到來，因此我們調整了成本，相應地調整了我們的成本基礎，並且我們很好地利用了該固定成本基礎。我們認為我們將繼續這樣做。如果你回顧一下這一年，我想我很樂意說我們全年的 EBITDA 利潤率將非常接近你所看到的，稱之為 17%、18%，你可以稱之為 18%今年。

And that just basically means we're operating incredibly well of fluctuating volumes, especially in the new construction segment. And we're able to do that again because we took cost out in the fourth quarter last year, operations from an efficiency standpoint, from a direct labor standpoint, from an even material standpoint, we've been able to offset the inflationary cost with prior price increases. So everything is just humming along very well executional-wise. Craig, do you have anything?

這基本上意味著我們在波動量方面的表現非常好，尤其是在新建築領域。我們能夠再次做到這一點，因為我們在去年第四季度扣除了成本，從效率的角度，從直接勞動力的角度，甚至從材料的角度來看，我們已經能夠抵消通貨膨脹成本之前漲價。因此，在執行方面，一切都在嗡嗡作響。克雷格，你有什麼事嗎？

Yes. No. So Q1, the surprise for Q1 was really the strong execution, the operations team across from delivery and their quality metrics. Definitely, we're improving much quicker than we had expected. So that really is what drove the overperformance from a Q1 perspective. And we have no reason to think that, that's going to change into Q2 and Q3.

是的。不，所以第一季度，第一季度的驚喜真的是強大的執行力，交付和質量指標對面的運營團隊。當然，我們的改進速度比我們預期的要快得多。因此，從第一季度的角度來看，這確實是推動超額表現的原因。我們沒有理由認為，這會變成第二季度和第三季度。

And the next question comes from Michael Rehaut with JPMorgan.

下一個問題來自摩根大通的 Michael Rehaut。

Doug Wardlaw on for Mike. How should we think about normalized margins over the long term? Over time, both your gross margins and SG&A have risen, but operating margin has about stayed the same. So do you anticipate any further upside to gross margins or on leverage to SG&A?

Doug Wardlaw 替下 Mike。從長遠來看，我們應該如何考慮標準化利潤率？隨著時間的推移，您的毛利率和 SG&A 都有所上升，但營業利潤率幾乎保持不變。那麼，您是否預計毛利率或 SG&A 的槓桿率會進一步上升？

Yes. And I think the first quarter is a good indicator for where gross margins will be for the full year of 2023. SG&A was a little heavier in Q1, primarily due to our participation in IBS, and so it got a little unevenness within the spend for the full year.

是的。而且我認為第一季度是 2023 年全年毛利率的一個很好的指標。第一季度的 SG&A 略重，主要是由於我們參與了 IBS，因此它的支出有點不均衡整年。

I would expect that, as Jeff noted, that long-term EBITDA margins, our target has always been in the high teens. We're confident that we'll be right around 18% for the full year.

我希望，正如傑夫指出的那樣，長期 EBITDA 利潤率，我們的目標一直是十幾歲。我們有信心全年將達到 18% 左右。

Yes. I'll just add. If you look at the major drivers of our cost, aluminum is pretty steady. It's actually year-over-year favorable. So we don't see any change in that given the current economic environment we're all operating in.

是的。我補充一下。如果你看看我們成本的主要驅動因素，鋁是相當穩定的。它實際上是同比有利的。因此，鑑於我們目前所處的經濟環境，我們看不到任何變化。

And then glass, our next huge cost. We have seen some increases in glass but we've been able to offset those increases, the major impact of those increases by either bringing more internal production into glass. You got to remember, we have 2 glass plants and so we can produce a lot of our own impact units and IG units.

然後是玻璃，我們的下一個巨大成本。我們已經看到玻璃的一些增長，但我們已經能夠抵消這些增長，這些增長的主要影響是通過將更多的內部生產引入玻璃。您必須記住，我們有 2 個玻璃廠，因此我們可以生產很多我們自己的衝擊裝置和 IG 裝置。

So we've insourced some of that to help offset cost as well as the overall demand and makeup between impact and nonimpact. We've seen strong demand in impact, and that always helps from a cost basis as well.

因此，我們已經內包了其中的一部分，以幫助抵消成本以及影響和非影響之間的總體需求和構成。我們已經看到了強烈的需求影響，而且從成本的角度來看，這也總是有幫助的。

Right. Great. And then I guess, switching gears a little bit. I appreciate the color on the shareholder rights plan. Just in terms of where you guys are now, is there any update on where the strategic investor is in terms of ownership? Have you had any recent discussions with the investor? And just a little bit more insight on that, if possible.

正確的。偉大的。然後我猜，換檔一點。我很欣賞股東權利計劃的色彩。就你們現在所處的位置而言，戰略投資者在所有權方面的位置是否有任何更新？您最近與投資者有過任何討論嗎？如果可能的話，對此有更多的了解。

Yes. Obviously, limited on what I want to say or can say around that. We did put in the poison pill to make sure all shareholders benefit from our performance and what we view as stock that's trading incredibly low.

是的。顯然，僅限於我想說或可以說的內容。我們確實加入了毒丸計劃，以確保所有股東都能從我們的業績以及我們認為交易價格極低的股票中受益。

So no update in terms of ownership. We don't think that's changed. Nothing's triggered in the poison pill in itself. So that ownership percentage, as far as we know, remain the same. And in terms of discussions, I mean, I discussed -- I'm going to give it to (inaudible) statement. I haven't discussed our company with a lot of our investors, okay? And has this one reached out? Yes, I've talked to this particular investor. That's about all color I can comment on it at this time.

所以在所有權方面沒有更新。我們認為這沒有改變。毒丸本身並沒有觸發任何東西。因此，據我們所知，所有權百分比保持不變。就討論而言，我的意思是，我討論過——我將把它交給（聽不清）聲明。我還沒有和很多投資者討論過我們的公司，好嗎？這個人伸出手了嗎？是的，我已經和這位特定的投資者談過。這就是我此時可以評論的所有顏色。

And the next question comes from Joe Ahlersmeyer with Deutsche Bank.

下一個問題來自德意志銀行的 Joe Ahlersmeyer。

So you're about 6 months into having Martin in your company. I know it's early, but any early learnings or progress on the channel synergies that you guys discussed at the acquisition? Not necessarily looking for a quantification, but just any initial impressions around that opportunity now that your teams are executing against it.

所以您的公司有 Martin 大約 6 個月。我知道現在還早，但是你們在收購時討論過的關於渠道協同效應的任何早期學習或進展？不一定要尋找量化，而是現在您的團隊正在針對該機會執行的任何初步印象。

Yes. I'll give a high level. I don't know if Craig will want to add something. But we went into Martin, we knew it was going to be how do you grow a small business, grassroot business. And the goal was to not only grow them in the new construction channel, which is where it come or they dominantly play, it was also to introduce it to the R&R channel. So we have various sales initiatives out to do that.

是的。我會給一個高水平。我不知道 Craig 是否想添加一些內容。但我們走進了馬丁，我們知道這將是你如何發展一家小企業，草根企業。目標不僅是在新的建設渠道中發展它們，這是它來的地方或它們占主導地位的地方，也是將它引入 R&R 渠道。因此，我們有各種銷售計劃來做到這一點。

We have had success in getting it into a few of our dealers as well as into an actual -- more of a, let's call it, a big box-type play. So we have had some success. Again, it's too early to tell at this point. We laid out internally, it was going to be up to a year before we had meaningful sales synergies in that business.

我們已經成功地將它引入我們的一些經銷商以及實際 - 更多的是，我們稱之為大型盒子類型的遊戲。所以我們取得了一些成功。同樣，現在下結論還為時過早。我們在內部進行了佈局，最多需要一年的時間才能在該業務中產生有意義的銷售協同效應。

We do plan on also introducing it into our NewSouth stores in Texas, and we'll be having those grand openings for those NewSouth stores coming up, I think, next month, actually. So we'll have a total of 5 stores in Texas. Those garage doors will be available in the NewSouth stores as well.

我們確實計劃也將它引入我們在德克薩斯州的 NewSouth 商店，我認為，實際上，我們將在下個月為即將到來的 NewSouth 商店舉行盛大開業儀式。所以我們在德克薩斯州總共有 5 家商店。這些車庫門也將在 NewSouth 商店出售。

So we're executing on various fronts to try to gain those sales synergies and really put out of new construction only and put it into that R&R channel. It's just going to take like we knew when we went into this, it's going to take probably, call it, 12 months or so to make that happen.

因此，我們正在各個方面執行以嘗試獲得這些銷售協同效應，並真正推出新建築並將其放入 R&R 渠道。就像我們在進入這件事時所知道的那樣，這可能需要 12 個月左右的時間才能實現。

The integration is going to plan. We're trying to streamline the production and take out costs related to that streamlining of production while increasing capacity. Craig, do you have anything else you want to add?

整合是要計劃的。我們正在努力精簡生產，並在增加產能的同時降低與精簡生產相關的成本。克雷格，你還有什麼要補充的嗎？

Yes. No. I mean I think that Martin's first quarter results were really impacted by some weather in the Salt Lake City area, too. So we're actively pursuing those plans and expect to see a lot. You'll hear more news about Martin in the coming quarters.

是的。不，我的意思是我認為馬丁第一季度的業績確實也受到了鹽湖城地區某些天氣的影響。所以我們正在積極推行這些計劃，並期待看到很多。在接下來的幾個季度中，您會聽到更多關於 Martin 的消息。

All right. Then just moving on to the new resi exposure in the Southeast, up 8%, it sounded like in the quarter. Could you just maybe break that down between what was carryover price versus volume? Because I would have assumed new resi window market volumes would have been down significantly in the first quarter.

好的。然後繼續關注東南部新的 resi 曝光，增長 8%，聽起來像是在本季度。您能否在結轉價格與數量之間進行分解？因為我原以為第一季度新的 resi 窗市場銷量會大幅下降。

So impressive that you were up in sort of the high single-digit range. And then maybe just if there's also a contribution to call out from your wins with the builders there or any other sort of market outperformance drivers that we'd expect to sort of be sustainable as you see the rebound that you're calling out in the release here.

令人印象深刻，以至於您處於高個位數範圍內。然後也許只是如果你與那裡的建設者的勝利或任何其他類型的市場表現出色的驅動因素也有貢獻，我們希望在你看到你在在這裡發布。

Sure. No. So from a price volume perspective, from an overall company perspective, unit volumes were down about 5%. The price impact was plus 8% to get to that plus 3% organic.

當然。沒有。所以從價格和數量的角度來看，從整個公司的角度來看，單位數量下降了大約 5%。價格影響增加 8%，有機增加 3%。

So if you apply that back down to the new construction plus 8%, most of that is price, but unit volumes are flat and the new construction in the Southeast have a lot of activity, both expanding dealer relationships and moving down into the regional builders. And so a lot of positive activity and a lot of share gain actually down there in that space. So we're optimistic about that business in '23.

因此，如果你將其應用到新建築加 8%，其中大部分是價格，但單位數量持平，東南部的新建築有很多活動，既擴大了經銷商關係，又進入了區域建築商.因此，在該領域實際上有很多積極的活動和大量的份額增長。因此，我們對 23 年的業務持樂觀態度。

And this concludes the question-and-answer session. I would like to turn the floor to Craig Henderson for any closing comments.

問答環節到此結束。我想請 Craig Henderson 發表任何結束評論。

Thank you all for joining us, and we appreciate the questions, and we look forward to connecting with you on our next call. Have a great day.

感謝大家加入我們，感謝您提出問題，我們期待在下次通話中與您聯繫。祝你有美好的一天。

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

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開線路。