(PGTI) 2023 Q2 法說會逐字稿

Good morning, and welcome to PGT Innovations' Second Quarter 2023 Earnings Conference Call.

早上好，歡迎參加 PGT Innovations 2023 年第二季度收益電話會議。

(Operator Instructions)

（操作員說明）

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.

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

Thank you, and good morning. Welcome to the PGT Innovations' Second Quarter 2023 Investor Conference Call. With me on the call today are President and CEO, Jeff Jackson; and our Interim Chief Financial Officer, Craig Henderson.

謝謝你，早上好。歡迎參加 PGT Innovations 2023 年第二季度投資者電話會議。今天與我一起參加電話會議的是總裁兼首席執行官傑夫·傑克遜 (Jeff Jackson)；以及我們的臨時首席財務官 Craig Henderson。

On the Investor Relations section of our company's 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.

在我們公司網站的投資者關係部分，您可以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文稿。該網絡廣播正在錄製中，並將在公司網站上重播。

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 the 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 上的披露聲明，以及收益新聞稿中包含的免責聲明和我們討論前瞻性聲明的 SEC 文件。今天的言論包含前瞻性陳述，包括有關我們 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存在重大差異的因素。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，請參見該公司最近向 SEC 提交的文件。

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 上，我們使用非 GAAP 財務指標報告結果，我們認為這提供了更多信息，可以幫助投資者比較報告期間的業績。收益發布的表格和幻燈片演示附錄中包含了與最直接可比的公認會計準則衡量標準的調節。

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傑夫傑克遜。

Thank you, Brad. Good morning, everyone, and thanks for joining us on today's call. Our second quarter financial results released earlier today showcased the commitment of our team members and supplier partners to continue executing in an ever-changing macro environment. Following record first quarter results, the company delivered sequential increases in both revenue and profitability despite continued economic uncertainty.

謝謝你，布拉德。大家早上好，感謝您參加今天的電話會議。我們今天早些時候發布的第二季度財務業績展示了我們的團隊成員和供應商合作夥伴在不斷變化的宏觀環境中繼續執行的承諾。繼創紀錄的第一季度業績之後，儘管經濟持續存在不確定性，該公司的收入和盈利能力仍連續增長。

Turning to Slide 4. We delivered total revenue of $385 million and adjusted EBITDA of $74 million or 19.1% in the second quarter. We were able to deliver strong profitability in the quarter due to our continued focus on productivity and operational execution. Our sequential revenue grew 2%, driven by increases in unit volume and our adjusted EBITDA increased 5% sequentially. The sequential growth was driven by a 6% increase in repair and remodeling channels, partially offset by continued weakness in the new construction, which declined 3% sequentially.

轉向幻燈片 4。第二季度我們的總收入為 3.85 億美元，調整後的 EBITDA 為 7400 萬美元，即 19.1%。由於我們持續關註生產力和運營執行，我們能夠在本季度實現強勁的盈利能力。在銷量增加的推動下，我們的收入環比增長了 2%，調整後的 EBITDA 環比增長了 5%。環比增長是由維修和改造渠道增長 6% 推動的，但新建築的持續疲軟（環比下降 3%）部分抵消了這一增長。

The housing market continues to show signs of optimism with new home construction activity partially offsetting the impact of the lock-in effect on existing home sales. We continue to maintain a normal price cost relationship and are getting near standard lead times and delivery across all our brands.

房地產市場繼續顯示出樂觀跡象，新房建設活動部分抵消了鎖定效應對現有房屋銷售的影響。我們繼續保持正常的價格成本關係，並且所有品牌的交貨時間和交貨時間都接近標準。

Next, on Slide 5, let's take a closer look at the second quarter our sales trends and key initiatives. During the quarter, we generated total revenue of $385 million. Sales in our Southeast segment were $288 million, an increase of $6 million versus the first quarter of 2023. Sales grew 2% sequentially and contracted 6% versus the prior year second quarter. Our Southeast brands continue to show resilience in a down market.

接下來，在幻燈片 5 上，讓我們仔細看看第二季度的銷售趨勢和關鍵舉措。本季度，我們的總收入為 3.85 億美元。東南部業務的銷售額為 2.88 億美元，比 2023 年第一季度增加 600 萬美元。銷售額環比增長 2%，比去年第二季度收縮 6%。我們的東南品牌在低迷的市場中繼續表現出韌性。

Our sequential revenue growth was driven by a 3% increase in R&R sales, partially offset by less than 1% decline in new construction sales. This is a record prior year quarter where the Southeast sales grew 27%. R&R sales declined 1%, and new construction sales were off 15%. Our Southeast year-over-year sales decline in the second quarter was primarily due to continued housing market volatility.

我們的環比收入增長是由 R&R 銷售增長 3% 推動的，但新建築銷售下降不到 1% 部分抵消了這一增長。東南地區銷售額增長 27%，創下去年同期的紀錄。 R&R 銷售下降 1%，新建建築銷售下降 15%。第二季度東南部銷售額同比下降主要是由於房地產市場持續波動。

We recently announced the acquisition of the remaining 25% of ECO Enterprises LLC. We first acquired the initial 75% ownership in ECO in 2021 to accelerate growth, expand margins and strengthen our supply chain by adding additional glass production capacity. We have been able to leverage the glass capabilities of the ECO business to vertically integrate our other brands and are excited to finalize the purchase of the remaining portion of the business.

我們最近宣布收購 ECO Enterprises LLC 剩餘 25% 的股份。我們首先於 2021 年收購了 ECO 最初 75% 的所有權，以通過增加額外的玻璃產能來加速增長、擴大利潤並加強我們的供應鏈。我們已經能夠利用 ECO 業務的玻璃能力來垂直整合我們的其他品牌，並很高興最終完成對該業務剩餘部分的購買。

Sales in our Western segment were $97 million, an increase of $2 million versus the first quarter of 2023. Sales in the West grew by 2% sequentially. Western organic sales contracted 12% versus the prior year quarter. The year-over-year comps Southwest were challenging due to cycling a 39% increase over organic sales in the second quarter of 2022, and the segment's biased towards a slower new construction market. We saw positive momentum in both all our Western segments in June and July.

我們西部地區的銷售額為 9700 萬美元，比 2023 年第一季度增加了 200 萬美元。西部地區的銷售額環比增長了 2%。西方有機產品銷售額與去年同期相比下降了 12%。西南航空的同比比較面臨挑戰，因為 2022 年第二季度的有機銷售額增長了 39%，而且該細分市場偏向於放緩的新建築市場。六月和七月，我們在所有西部地區都看到了積極的勢頭。

During the quarter, we relaunched our Western Series 7600 multi-slide door. This product provides extreme opening sizes, including max panel heights of 15 feet and is available in multiple configurations. This new product continues to provide our leading-edge performance, but at much larger sizes.

本季度，我們重新推出了 Western 系列 7600 多滑門。該產品提供極端的開口尺寸，包括最大 15 英尺的面板高度，並有多種配置可供選擇。這款新產品繼續提供我們領先的性能，但尺寸更大。

Our Martin Garage Doors acquisition, which closed in late 2022, delivered strong sequential growth off a weather-impacted first quarter. We are actively committing resources to execute on our sales synergies planned across our Western region and into our new South locations. Martin will be launching our new [Keystone Pan Door] in the third quarter, featuring a design using in-line stamping with a minimal rip on the door face. This innovative new design provides a clear lines of homeowners' desire.

我們對 Martin Garage Doors 的收購於 2022 年底完成，在受天氣影響的第一季度實現了強勁的連續增長。我們正在積極投入資源，以實現我們在西部地區和新的南部地區計劃的銷售協同效應。 Martin 將在第三季度推出我們的新款 [Keystone Pan Door]，其設計採用直線沖壓，門面上的撕裂最小。這種創新的新設計明確地滿足了房主的願望。

During the second quarter, we held grand openings for our NewSouth retail showrooms range in Dallas, Fort Worth and San Antonio, Texas. These new locations offer all our custom NewSouth products along with Martin garage doors. Our Austin showroom will be opening later this year. We are excited about the expansion of the NewSouth brand into major metro markets in Texas and look forward to adding Martin Garage Doors to other NewSouth locations later this year.

第二季度，我們在達拉斯、沃斯堡和德克薩斯州聖安東尼奧的 NewSouth 零售陳列室系列隆重開業。這些新地點提供我們所有定制的 NewSouth 產品以及 Martin 車庫門。我們的奧斯汀陳列室將於今年晚些時候開業。我們對 NewSouth 品牌擴展到德克薩斯州主要地鐵市場感到興奮，並期待今年晚些時候將 Martin Garage Doors 添加到 NewSouth 的其他地點。

Throughout this volatile macroeconomic environment, we remain focused on controlling costs and -- while delivering on our value proposition to customers. This commitment has allowed us to achieve and maintain strong profitability. We will continue to invest in our brands, our capacities and automations and our people to outperform the competition and deliver returns for our investors both in the near and long term.

在這個動蕩的宏觀經濟環境中，我們仍然專注於控製成本，同時向客戶提供我們的價值主張。這一承諾使我們能夠實現並保持強勁的盈利能力。我們將繼續投資於我們的品牌、產能和自動化以及我們的員工，以超越競爭對手，並為我們的投資者帶來短期和長期回報。

We continued our commitment to innovation, which underlines everything we do. We are proud to announce that we will be launching our first product to feature Diamond Glass, our impact-resistant glass using technology from an exclusive partnership with Corning in the third quarter. Our premium WinDoor brand will transition to Diamond Glass and will be the first to receive the improved clarity, lower weight, 3x scratch resistance and improved energy efficiency, while maintaining the impact resistance that customers expect from our industry-leading impact brands.

我們繼續致力於創新，這突顯了我們所做的一切。我們很自豪地宣布，我們將在第三季度推出首款採用 Diamond Glass 的產品，這是我們的耐衝擊玻璃，採用與康寧獨家合作的技術。我們的優質WinDoor 品牌將過渡到鑽石玻璃，並將成為第一個獲得更高透明度、更輕重量、3 倍耐刮擦性和更高能源效率的品牌，同時保持客戶對我們行業領先的抗衝擊品牌所期望的抗衝擊性。

I'm excited to report WinDoor products featuring Diamond Glass will be available at no increase in price, bringing improved performance with no increased cost to our customers. As we scale up our operations at our glass facilities in Venice, we will be adding Diamond Glass as a premium option to our PGT branded products.

我很高興地向大家報告，採用 Diamond Glass 的 WinDoor 產品將在不漲價的情況下上市，從而在不增加客戶成本的情況下提高性能。隨著我們擴大威尼斯玻璃工廠的運營規模，我們將添加鑽石玻璃作為我們 PGT 品牌產品的優質選擇。

We continue to execute on our plan to deliver our Thin triple insulated glass units to other window and door manufacturers in early 2024. We remain committed to delivering products with features, performance and value demanded by our builders and customers. Our open order backlog is $247 million at the end of the quarter, up $11 million from the first quarter, primarily from demand in our Southeast segment.

我們繼續執行計劃，於 2024 年初向其他門窗製造商提供薄三重隔熱玻璃單元。我們仍然致力於提供具有我們的建築商和客戶所需的功能、性能和價值的產品。截至本季度末，我們的未完成訂單積壓量為 2.47 億美元，比第一季度增加 1100 萬美元，主要來自東南部市場的需求。

Regarding our shareholder rights plan, the circumstances described in our March 30 press release, necessitating the implementation of the plan continue to exist. We continue to engage in constructive dialogue with all our investors, and we welcome all their perspectives. We are always open to opportunities to maximize shareholder value. We continue to execute on our plan to create long-term value for all our shareholders, including our $250 million share repurchase program. During the second quarter, we invested $19.8 million in open market transactions to repurchase our shares for a total of $45.4 million in share repurchases year-to-date.

關於我們的股東權利計劃，我們3月30日新聞稿中描述的需要實施該計劃的情況仍然存在。我們繼續與所有投資者進行建設性對話，我們歡迎他們的所有觀點。我們始終對實現股東價值最大化的機會持開放態度。我們繼續執行為所有股東創造長期價值的計劃，包括 2.5 億美元的股票回購計劃。第二季度，我們在公開市場交易中投資了 1,980 萬美元來回購股票，今年迄今為止的股票回購總額為 4,540 萬美元。

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

現在我想將電話轉給克雷格·亨德森 (Craig Henderson)，以更詳細地審查我們第二季度的業績。克雷格？

Thank you, Jeff. Turning to Slide 6. Consolidated net sales were $385 million in the second quarter, down 5% from the prior year second quarter. The year-over-year decrease in net sales was caused by an 8% decline from our legacy businesses. The impact of unit volume decline was 13%, partially offset by a price impact of plus 5%, primarily from price increases taken in the prior year second quarter.

謝謝你，傑夫。轉向幻燈片 6。第二季度綜合淨銷售額為 3.85 億美元，比去年第二季度下降 5%。淨銷售額同比下降是由於我們的傳統業務下降了 8%。單位銷量下降的影響為 13%，部分被價格上漲 5% 的影響所抵消，主要來自去年第二季度的價格上漲。

Our Southeast segment sales contracted 6% from the prior year second quarter, while our Western segment sales were down 12% from the prior year. During the second quarter, our sales breakdown was 61% R&R and 39% new construction. Organic R&R sales were down 1% compared to the second quarter of 2022. We continue to deliver strong R&R sales growth in PGT and ECO, but this was offset by our other brands. Organic new construction sales were down 17% to the prior year second quarter reflecting the weakness in new home construction activity.

我們的東南部細分市場銷售額較去年第二季度收縮 6%，而西部細分市場銷售額較去年同期下降 12%。第二季度，我們的銷售細分為 61% 的 R&R 和 39% 的新建築。有機 R&R 銷售額與 2022 年第二季度相比下降了 1%。我們繼續在 PGT 和 ECO 領域實現強勁的 R&R 銷售額增長，但這被我們的其他品牌所抵消。有機新建築銷售較上年第二季度下降 17%，反映出新屋建設活動疲軟。

Gross profit was $154 million in the second quarter and declined 7% when compared to the prior year second quarter. Our Q2 results were driven by reduced fixed cost leverage from lower volumes, partially offset by continued solid performance from our operating teams. The impact of prior year pricing actions offsetting material and wage inflation and additional cost containment measures.

第二季度毛利潤為 1.54 億美元，較去年第二季度下降 7%。我們第二季度的業績是由於銷量下降導致固定成本槓桿減少而推動的，但我們運營團隊持續穩健的業績部分抵消了這一影響。上一年定價行動的影響抵消了材料和工資通脹以及額外的成本控制措施。

Selling, general and administrative expenses decreased 9% in the second quarter compared to the prior year, driven by strong cost containment measures. Adjusted EBITDA of $74 million or 19.1% was 6% lower than the prior year's second quarter. This year-over-year decrease in dollars was driven by reduced fixed cost leverage from lower sales volumes. However, the continued high margin performance was a result of operational efficiencies and the impact of pricing actions offsetting material and wage inflation.

在強有力的成本控制措施的推動下，第二季度的銷售、一般和管理費用比去年同期下降了 9%。調整後 EBITDA 為 7,400 萬美元，即 19.1%，比去年第二季度低 6%。美元同比下降是由於銷量下降導致固定成本槓桿減少所致。然而，持續的高利潤表現是運營效率以及定價行為抵消材料和工資通脹影響的結果。

Our adjustments for the quarter included $2.5 million related to the closing of our Charlotte and Raleigh-Durham NewSouth showrooms, which opened in 2021. We are exiting these markets to focus our investments to drive growth in other areas of the business during this volatile macro environment.

我們對本季度的調整包括與關閉2021 年開業的夏洛特和羅利-達勒姆NewSouth 展廳相關的250 萬美元。在這個動蕩的宏觀環境中，我們正在退出這些市場，以集中投資推動其他業務領域的增長。

In addition, we adjusted our second quarter results by approximately $500,000 for onetime charges related to acquisitions and for costs incurred in the second quarter relating to our fourth quarter 2022 cyber incident. Our tax expense for the quarter came in at 26.5%. We reported adjusted net income of $34 million or $0.58 per diluted share compared to $41 million or $0.67 per diluted share in the second quarter of 2022.

此外，我們還將第二季度業績調整了約 500,000 美元，用於與收購相關的一次性費用以及第二季度與 2022 年第四季度網絡事件相關的成本。本季度我們的稅收支出為 26.5%。我們公佈的調整後淨利潤為 3400 萬美元，即稀釋後每股收益 0.58 美元，而 2022 年第二季度的淨利潤為 4100 萬美元，即稀釋後每股收益 0.67 美元。

Turning now to our balance sheet on Slide 7. At the end of the second quarter, we had net debt of $640 million and total liquidity of $177 million. As of the end of the second quarter, we had a trailing 12-month bank covenant net debt to adjusted EBITDA ratio of 2.4x. We generated operating cash flow of $36 million in the second quarter. We also invested $13 million in CapEx, mostly related to cost reduction and capacity expansion initiatives that will enable us to improve our profitability in 2023 and beyond.

現在轉向幻燈片 7 上的資產負債表。第二季度末，我們的淨債務為 6.4 億美元，流動性總額為 1.77 億美元。截至第二季度末，我們的過去 12 個月銀行契約淨債務與調整後 EBITDA 的比率為 2.4 倍。第二季度我們產生了 3600 萬美元的運營現金流。我們還投資了 1300 萬美元的資本支出，主要用於降低成本和產能擴張計劃，這將使我們能夠在 2023 年及以後提高盈利能力。

During the second quarter, we continued execution of our 3-year $250 million share repurchase program and returned $19.8 million to shareholders through the repurchase of 777,000 shares.

第二季度，我們繼續執行為期 3 年 2.5 億美元的股票回購計劃，通過回購 777,000 股股票向股東返還 1,980 萬美元。

Moving on to our guidance on Slide 8. The continued macroeconomic uncertainty will again limit our sales and EBITDA outlook to the next quarter. For the third quarter, we anticipate revenue to be in the range of $385 million to $405 million. We anticipate adjusted EBITDA to be within the range of $71 million to $77 million. For the third quarter, we expect price to contribute 2% to our growth over the prior year quarter. We expect sales volume to increase from the second quarter, driven by a recovery in new construction and stability in R&R sales.

繼續我們對幻燈片 8 的指導。持續的宏觀經濟不確定性將再次限制我們對下一季度的銷售和 EBITDA 前景。我們預計第三季度的收入將在 3.85 億美元至 4.05 億美元之間。我們預計調整後的 EBITDA 將在 7100 萬美元至 7700 萬美元之間。對於第三季度，我們預計價格將比去年同期增長 2%。我們預計，在新建築復甦和 R&R 銷售穩定的推動下，銷量將較第二季度有所增加。

We expect our strong operations execution, along with continued cost containment will enable us to continue to deliver strong profits in this uncertain market. We expect to spend $25 million in 2023 on our new glass operation equipment and facilities, in addition to the normal 3% to 4% of sales run rate capital spending. This higher level of spend will ensure that our new glass operations will launch successfully. Despite this increased investment, we continue to hold our target leverage at 2x to 3x EBITDA.

我們預計，強大的運營執行力以及持續的成本控制將使我們能夠在這個不確定的市場中繼續創造強勁的利潤。除了正常的銷售運行率 3% 至 4% 的資本支出外，我們預計 2023 年將花費 2500 萬美元購買新的玻璃運營設備和設施。更高水平的支出將確保我們新的玻璃業務成功啟動。儘管投資增加，我們仍將目標槓桿率維持在 2 至 3 倍 EBITDA。

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

現在我想把電話轉回傑夫。傑夫？

Thanks, Craig. I'll conclude today with a summary of the current market conditions and why we believe PGT Innovations is positioned to continue to deliver above-market long-term growth despite the challenging near-term demand environment. While the underlying macroeconomic volatility continues to affect both homebuyers and homeowners, our repair and remodeling channel is bolstered by the lock-in effect of lower fixed rate mortgages, meaning homeowners are more likely to stay in their homes longer.

謝謝，克雷格。今天，我將總結當前的市場狀況，以及為什麼我們相信 PGT Innovations 能夠在近期需求環境充滿挑戰的情況下繼續實現高於市場水平的長期增長。雖然潛在的宏觀經濟波動繼續影響購房者和房主，但我們的維修和改造渠道受到較低固定利率抵押貸款的鎖定效應的支持，這意味著房主更有可能在自己的房屋中停留更長時間。

The record level we see in home equity and the increasing in age of homes means homeowners are more willing to take on long-term remodeling projects to update their homes. This lock-in effect will positively impact new construction activity as well. The dramatic reduction in existing home sales is helping to drive a stable recovery in the new home construction.

我們看到的房屋淨值創紀錄的水平和房屋年齡的增加意味著房主更願意承擔長期的改造項目來更新他們的房屋。這種鎖定效應也將對新建築活動產生積極影響。成屋銷售的大幅減少有助於推動新房建設的穩定復甦。

Long term, industry sources continue to 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 homes to be formed, the need for an additional 17 million housing units to meet demographic demand, 1.8 million additional homes will reach primary modeling years through 2027, 83% of mortgage borrowers are locked in with mortgage rates below 5%. The average homeowner has $333,000 in equity in their home.

從長遠來看，行業消息人士繼續表示，有幾個宏觀經濟趨勢將支持未來幾年新建建築和 R&R 市場的增長。這些趨勢包括不斷增長的成年人口，尤其是千禧一代，將推動建造1270 萬套新住房，需要額外1700 萬套住房來滿足人口需求，到2027 年將有180 萬套住房達到初級建造年齡，其中83%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 333,000 美元的房屋淨值。

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 forwarded brands have the added benefit of increased hurricane awareness, evolving construction standards and the enactment of the Home Hardening Sales Tax Relief Act on impact products.

《降低通貨膨脹法案》對 2032 年之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。我們轉發的品牌還具有颶風意識增強、建築標準不斷發展以及針對影響產品頒布的《家庭加固銷售稅減免法案》等額外優勢。

Turning to Slide 9. PGT Innovations has both a solid foundation to take advantage of these long-term trends, and we see a greater benefit than others in our space when the economy stabilizes. Our strategy is to focus on markets where the demographic trends is more favorable than the national average. 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 into adjacent building product categories to complement our existing portfolio of Windows and Doors brands.

轉向幻燈片 9。PGT Innovations 擁有利用這些長期趨勢的堅實基礎，而且當經濟穩定時，我們看到比我們領域的其他公司獲得更大的好處。我們的策略是專注於人口趨勢比全國平均水平更有利的市場。首先，我們是全國領先者，擁有過去幾年加強的優秀品牌組合。我們正在執行我們的增長戰略，包括擴展到鄰近的建築產品類別，以補充我們現有的門窗品牌組合。

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

我們的產品在耐衝擊和室內/室外生活市場繼續受到關注。我們為人口增長強勁的地區提供服務。其次，通過收購和新產品的推出，我們的產品組合不斷擴大，這進一步促進了新建和修繕渠道的平衡增長。

Third, operational improvements and capital investments have increased our capacities and delivered margin expansion. Our 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，運營改進和資本投資提高了我們的產能並實現了利潤率的擴大。我們強大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，我們對創新、新產品開發和人才的持續投資有助於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 improving 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 economic 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.

最後，我們致力於通過提高盈利能力和通過股票回購計劃向股東返還資本來增加股東價值。我們相信 PGT Innovations 處於有利地位，能夠應對當前的經濟環境，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。

In addition, we believe our current trading range does not profitably reflect a long-term potential shareholder value for PGT Innovations shareholders. And the actions we have discussed will drive our company's value higher.

此外，我們認為我們目前的交易範圍並不能體現 PGT Innovations 股東的長期潛在股東價值。我們所討論的行動將推動我們公司的價值更高。

I want to thank our shareholders, our team members, channel partners and suppliers for their continued support.

我要感謝我們的股東、團隊成員、渠道合作夥伴和供應商的持續支持。

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

這個時候，我們就開始問答吧。操作員？

(Operator Instructions) Our first question will come from Phil Ng with Jefferies.

（操作員說明）我們的第一個問題將由 Jefferies 的 Phil Ng 提出。

It's Maggie on for Phil. I guess, first, digging into the demand outlook across your end markets. It sounds like R&R has been outperforming new construction, but you're expecting a sequential improvement in both of those end markets next quarter. Do you expect to see a positive year-over-year inflection this year? Or is that more of a 2024 event right now?

瑪吉替菲爾上場。我想，首先，深入研究終端市場的需求前景。聽起來 R&R 的表現一直優於新建築，但您預計下季度這兩個終端市場都會出現連續改善。您預計今年會出現同比積極的變化嗎？或者現在這更像是 2024 年的事件？

And you mean in total sales, Maggie, or just...

你的意思是總銷售額，瑪吉，或者只是......

Yes. I guess by end market. You talked about you're starting to see a recovery in new construction. Do you see that kind of inflecting positive this year? And same for R&R.

是的。我猜是終端市場。您談到您開始看到新建築的複蘇。您認為今年這種情況會出現積極的變化嗎？ R&R 也是如此。

May you take that.

願你接受。

Yes. Maggie, we definitely believe that the demand continues to be strong from an R&R perspective. New construction has been weaker just because of the falloff in the activity from the second half of 2022, but we do see early signs that it is improving. So from an R&R perspective, definitely will be up from a year-over-year perspective. New construction will be more flattish, but we'll be flat from a dollar perspective.

是的。 Maggie，我們絕對相信，從 R&R 的角度來看，需求仍然強勁。由於 2022 年下半年活動的減少，新開工量一直疲軟，但我們確實看到了跡象正在改善。因此，從 R&R 的角度來看，肯定會同比增長。新建築將更加平坦，但從美元角度來看，我們將持平。

Yes. And I will say, Maggie, even -- I mean, if you look in July, and I'm going to speak total by segment. July order trends were already up 8% in the month of July over last year. That's -- I think that's why we really are feeling more positive in the back half of the year, and that's reflected in our increased Q3 guidance.

是的。我會說，瑪吉，甚至 - 我的意思是，如果你看看七月，我將按部分總體發言。 7 月份訂單趨勢已比去年同期增長 8%。這就是——我認為這就是為什麼我們在今年下半年確實感覺更加積極，這反映在我們增加的第三季度指導中。

Okay. Okay. Got it. That's helpful. And then in Florida specifically, you have some secular tailwinds from the recent hurricane activity as well as the Home Hardening Act. Can you talk about what the consumer response to both of those have been? And what's your sense of contribution from those in the first half and then going into the balance of 2023?

好的。好的。知道了。這很有幫助。特別是在佛羅里達州，最近的颶風活動以及《家庭加固法案》給你帶來了一些長期的推動力。您能談談消費者對這兩者的反應嗎？您對上半年以及 2023 年下半年的貢獻有何感想？

Yes. I mean the response to the Home Hardening Tax Relief has been very strong. Our dealer base has been able to take advantage of that as they're out selling windows and doors into the homes. Especially since Hurricane Ian hit, we did have a significant interest in that just on our lines that call into PGT. Obviously we see those out to our dealer base. If you look at Florida, just last year alone, Florida had over 400,000 people move into the state, and that was only the fourth time in the state's history it has been that above 400,000.

是的。我的意思是，人們對家庭硬化稅收減免的反應非常強烈。我們的經銷商基地已經能夠利用這一點，因為他們正在銷售房屋的門窗。特別是自從颶風伊恩襲擊以來，我們確實對調用 PGT 的線路產生了濃厚的興趣。顯然，我們將這些內容髮送給我們的經銷商基地。如果你看看佛羅里達州，僅去年一年，就有超過 40 萬人口搬入該州，這只是該州歷史上第四次超過 40 萬。

So people are moving in, hurricanes are hitting, and that awareness factor -- until you've been through a hurricane, that awareness factor plays very well for selling impact product. So we continue to reap those benefits.

因此，人們正在搬進來，颶風來襲，而意識因素——直到你經歷了颶風，這種意識因素對於銷售有影響力的產品非常有效。所以我們繼續獲得這些好處。

I'd say we will see the benefits of Hurricane Ian for at least the next 18 months. Looking back to Irma, we saw a good uplift in Irma for about a 2-year period. And so if you look at Ian, I would estimate about the same time frame in terms of a benefit in sales.

我想說，至少在接下來的 18 個月內，我們將看到伊恩颶風帶來的好處。回顧艾瑪，我們看到艾瑪在大約兩年的時間裡出現了良好的上升。因此，如果你看看伊恩，我會估計在銷售效益方面大約相同的時間範圍。

Do you have anything you want to add, Craig?

克雷格，你還有什麼要補充的嗎？

Yes. A lot of the demand that we're seeing so far is still just related to hurricane awareness. And so the repair and remodel piece of it, especially in the Southwest Florida region where most of the damage happened, is still inbound in the second half and potentially into the first half of next year.

是的。到目前為止，我們看到的許多需求仍然與颶風意識有關。因此，修復和改造部分，特別是在發生大部分損壞的佛羅里達州西南部地區，仍在下半年進行，並可能持續到明年上半年。

Our next question will come from Mike Rehaut with JPMorgan.

我們的下一個問題將由摩根大通的 Mike Rehaut 提出。

Doug Wardlaw for Mike. Can you guys talk about the trends you saw in the Western segment throughout the quarter, if you could give a little bit more color there. And just how the region bounced back from the weather impact in the first quarter? And then if you could add a little bit on how you expect the region to trend moving into the back half of the year directionally.

道格·沃德勞（Doug Wardlaw）代表邁克。你們能談談整個季度在西方市場看到的趨勢嗎？如果你們能提供更多的信息的話。該地區如何從第一季度的天氣影響中恢復過來？然後，您是否可以補充一下您對該地區進入今年下半年的趨勢的預期。

Sure. I'll speak in high level, then Craig can share some more numbers detail. But yes, the first part of the -- first half of this year, obviously, the first quarter being impacted by the weather, by the rain. California all the way through really impacts into Arizona with the snowfalls and stuff. So we've really had weather-related issues. But all those are pretty much behind us now. What we're seeing is a good trend in (inaudible) and even Western stabilizing as we come through the year itself.

當然。我將進行高層發言，然後克雷格可以分享更多數字細節。但是，是的，今年上半年，顯然，第一季度受到天氣、降雨的影響。加利福尼亞州一路降雪，確實影響到了亞利桑那州。所以我們確實遇到了與天氣有關的問題。但現在所有這些都已成為過去。當我們度過這一年時，我們看到的是（聽不清）甚至西方穩定的良好趨勢。

In Martin, our new acquisition, we've been able to set up 47 new dealers. We're very pleased with the sales synergies we're starting to at least set up, and we think those benefits will be coming soon in terms of top line growth there. And we actually start in Utah with Lowe's with the Martin Garage Doors, having Lowe's in Utah. So we've got some good, I would say, back half initiatives going on out West that will really drive what we think some good volume.

在我們新收購的馬丁，我們已經能夠設立 47 個新經銷商。我們對我們至少開始建立的銷售協同效應感到非常滿意，我們認為這些好處很快就會在收入增長方面體現出來。實際上，我們從猶他州的勞氏公司開始，在猶他州有勞氏公司的馬丁車庫門。因此，我想說，我們在西部地區實施了一些好的後半計劃，這將真正推動我們認為良好的銷量。

Now it does still -- it's still impacted by the slowdown in new construction because Western as you all know, is basically new construction, and we have those agreements with various national players like Toll Brothers, et cetera, for their indoor/outdoor living. So that has slowed, but we do feel that, again, as the back half -- as we enter the back half of the year, we could see some more traction there.

現在仍然如此——它仍然受到新建築放緩的影響，因為眾所周知，西方基本上是新建築，我們與托爾兄弟等各個國家的參與者就他們的室內/室外生活達成了這些協議。因此，這種速度已經放緩，但我們確實再次感覺到，隨著下半年 - 當我們進入今年下半年時，我們可能會看到更多的牽引力。

Yes, I would say the year-over-year comps, definitely, we're seeing the weakness in new construction and that's evident in the Western brands. But sequentially, seeing improvement, and we expect to see further improvement as we move into Q3, Q4.

是的，我想說，從同比來看，我們確實看到了新建築的弱點，這在西方品牌中很明顯。但隨後，我們看到了改善，我們預計進入第三季度、第四季度時會看到進一步的改善。

Got it. And then I guess just referencing your acquisition, your M&A strategy, as you said, new res is looking up and we've been looking at single-family starts, which are starting to improve. So does that improvement in that end market change the way you guys are looking at acquisitions moving forward?

知道了。然後我想只是參考你的收購、你的併購策略，正如你所說，新的資源正在尋找，我們一直在關注單戶住宅的開工，這些都開始改善。那麼，終端市場的改善是否會改變你們看待未來收購的方式？

Yes, I don't think so. We're deploying capital, obviously, back to shareholders. For instance, in the share repurchase program we've got going on. We're always looking for the right fit to add to the portfolio of brands. But again, I don't think anything has necessarily changed our strategy moving forward. We wait for the right opportunity and move if it comes available.

是的，我不這麼認為。顯然，我們正在將資本配置回股東。例如，我們正在進行股票回購計劃。我們一直在尋找合適的品牌來添加到品牌組合中。但同樣，我認為沒有任何事情一定會改變我們前進的戰略。我們等待合適的機會，如果有機會就會採取行動。

Our next question comes from Keith Hughes with Truist.

我們的下一個問題來自 Truist 的 Keith Hughes。

A question on gross margin. A solid number here in the quarter, and it seems like you're indicating some more good gross margins coming. I guess my question is the gross margins are running far higher than they were pre-COVID. Is there anything here that would keep those margins going down, assuming a solid demand environment in future years. Is this probably a new gross margin level for PGTI?

關於毛利率的問題。本季度的數據很可靠，而且您似乎表明即將出現一些更好的毛利率。我想我的問題是毛利率遠高於新冠疫情之前的水平。假設未來幾年的需求環境穩定，是否有什麼因素可以使這些利潤率繼續下降。這可能是 PGTI 的新毛利率水平嗎？

No. I mean I think this is the new standard from a PGTI perspective. We've definitely grown since COVID, and so you're overcoming fixed cost, and from an incremental margin perspective, if anything, it will improve slightly as demand increases and as our business increases. We have capacity out there, and we're looking from a capital perspective to expand capacity where needed. That's not going to impact significantly the gross margin going forward.

不。我的意思是，從 PGTI 的角度來看，這是新標準。自新冠疫情以來，我們確實有所增長，因此您正在克服固定成本，從增量利潤的角度來看，如果有的話，隨著需求的增加和我們業務的增加，它會略有改善。我們有產能，並且我們正在從資本角度考慮在需要時擴大產能。這不會對未來的毛利率產生重大影響。

So right now, we're in a good price cost relationship from a raw materials perspective, we're seeing deflation in some buckets of raw materials, inflation and others but from a balance perspective, we feel like we're in a great place, and we'll be able to kind of maintain that gross margin and expand it as we move forward.

所以現在，從原材料的角度來看，我們處於良好的價格成本關係，我們看到某些原材料出現通貨緊縮、通貨膨脹等，但從平衡的角度來看，我們感覺我們處於一個很好的位置，我們將能夠保持毛利率並隨著我們的前進而擴大它。

With fixed cost leverage, basically, Keith, I would echo what Craig has said and definitely agree. We did have some wage pressures in the last couple of years that we've significantly increased our wage base to compensate both for inflation and just competition to keep our folks. So that's baked in and we're not experiencing that currently. Aluminum is in check. Actually, we have a very successful hedging program.

基本上，有了固定成本槓桿，基思，我會回應克雷格所說的話，並且絕對同意。在過去的幾年裡，我們確實面臨著一些工資壓力，因此我們大幅提高了工資基數，以補償通貨膨脹和公平競爭以留住我們的員工。所以這已經成為現實，我們目前還沒有經歷過這種情況。鋁受到檢查。事實上，我們有一個非常成功的對沖計劃。

So I just don't see anything majorly impacting our gross margin that would say the current trends aren't something we can count on going forward. And like Craig said, as we gain more volume, there's a good leverage component to that as well.

因此，我認為沒有任何因素對我們的毛利率產生重大影響，這表明當前的趨勢不是我們未來可以指望的。正如克雷格所說，隨著我們獲得更多的交易量，其中也有一個很好的槓桿成分。

Okay. One other question. You talked, Jeff, about 8%, I believe, order rate growth. That sounds like that's company-wide. How does that break out East versus West?

好的。還有一個問題。傑夫，你談到了訂單率增長約 8%。這聽起來像是全公司範圍內的事情。東方與西方是如何區分的？

One second. I think Craig may have that detail.

一秒。我認為克雷格可能有這個細節。

Yes. So the 8% growth in the third quarter from a demand perspective is 17% in the Southeast and then still down 15% in the West. Both of those are improving over Q2. In Q2, the demand growth really kind of came back really more due to the price increase that we took in the second quarter of last year kind of changed the demand seasonality. So the demand numbers got a little bit sideways in the second quarter. But the sequential trends are very solid, and we continue to see stability in actual growth in this market, which is -- gives us support for the results that we're putting forward in Q3.

是的。因此，從需求角度來看，第三季度 8% 的增長是東南部地區 17%，而西部地區仍下降 15%。這兩個方面都比第二季度有所改善。在第二季度，由於我們去年第二季度的價格上漲改變了需求季節性，需求增長確實有所回升。因此，第二季度的需求數據略有下滑。但連續趨勢非常穩固，我們繼續看到該市場實際增長的穩定性，這為我們在第三季度提出的結果提供了支持。

It appears there no further questions. This concludes our question-and-answer session.

看來沒有其他問題了。我們的問答環節到此結束。

I would like to turn the conference back over to Craig Henderson for any closing remarks.

我想將會議轉回給克雷格·亨德森（Craig Henderson）發表閉幕詞。

Thanks for joining us on the call today. We look forward to future conversations with you and look forward to connecting in next quarter in early November. Have a great day.

感謝您今天加入我們的電話會議。我們期待與您進行未來的對話，並期待在 11 月初的下個季度進行聯繫。祝你有美好的一天。

The conference has now concluded. Thank you for attending today's presentation. 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。