(PGTI) 2023 Q3 法說會逐字稿

Good morning, and welcome to PGT Innovation's Third Quarter 2023 Earnings Call. (Operator Instructions). I would now like to turn the conference over to PGT Innovation's Senior Vice President of Corporate Development, Brad West. Please go ahead.

早安，歡迎參加 PGT Innovation 的 2023 年第三季財報電話會議。 （操作員說明）。現在我想將會議轉交給 PGT Innovation 企業發展資深副總裁 Brad West。請繼續。

Thank you. Good morning, and welcome to the PGT Innovations Third Quarter 2023 Conference Call. With me on the call today are President and CEO, Jeff Jackson; and our Interim Chief Financial Officer, Craig Anderson. 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. 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 and factors that could cause actual results to differ from expected results, is available in the company's most recent SEC filings. 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 when available is included in the tables in the earnings release and in the slide presentation appendix. At this time, I will now hand over the call to our company's CEO and President, Jeff Jack.

謝謝。早上好，歡迎參加 PGT Innovations 2023 年第三季電話會議。今天與我一起參加電話會議的是總裁兼執行長傑夫傑克森 (Jeff Jackson)；以及我們的臨時財務長克雷格·安德森。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簡報。該網路廣播正在錄製中，並將在公司網站上重播。在我們開始準備好的評論之前，請注意簡報投影片 2 上的揭露聲明以及收益新聞稿中包含的免責聲明以及討論前瞻性聲明的 SEC 文件。今天的言論包含前瞻性陳述，包括有關我們 2023 年財務表現展望的陳述。這些陳述涉及風險、不確定性和其他可能導致實際結果有重大差異的因素。該公司最近向 SEC 提交的文件中提供了可能導致實際結果與預期結果不同的其他資訊和因素。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。收益報告和幻燈片簡報附錄中的表格中包含了與最直接可比較的公認會計原則（GAAP）衡量標準（如果有）的對帳。現在，我將把電話轉交給我們公司的執行長兼總裁傑夫傑克。

Thank you, Brad. Good morning, everyone, and thanks for joining us today. Before we get into our quarterly earnings results, I want to acknowledge the recent transaction removes and market speculation in the media. We are not going to comment on those rumors today and are focused on presenting our strong earnings results. We continue to engage in constructive dialogue with all our investors, and we welcome their perspectives. We are always open to opportunities to maximize shareholder value. With that, let me get to today's earnings results. Our third quarter financial results released earlier today, showcased our ability to meet the growing demand for our products in this current dynamic market conditions we are operating in. Our balanced exposure to both new construction and repair and remodeling channels is a structural advantage that enables our team to consistently deliver record sales and solid profits over the past year. Our third quarter financial results are strong evidence that demand for our premium products remain strong and that the entire team is executing on all cylinders. Our team members are at the heart of our continued success and in recognition of their efforts, we announced during the third quarter a special grant of 395,000 shares of restricted stock to those team members who do not participate in the company's long-term incentive plan. Turning to Slide 4. We delivered total revenue of $400 million and adjusted EBITDA of $78 million or 19.6% in the third quarter. We were able to deliver strong profitability in the quarter due to our continued focus on productivity and operational execution. Our year-over-year revenue growth of 4% and our adjusted EBITDA increase was 15% versus the prior year third quarter. The year-over-year sales growth was driven by an 11% increase in the repair and remodeling channels, partially offset by continued weakness in new construction, which declined 7%. The strong demand for our products continues despite the impact of high interest rates on current housing market conditions. We continue to maintain a normal price/cost relationship in our industry-leading lead times, quality, service and value proposition are helping us drive increased market penetration across our brands and geographies. Next, on Slide 5, let's take a closer look at the third quarter, our sales trends and key initiatives. Sales in our Southeast segment were a record $303 million, an increase of 5% versus the prior year third quarter and also 5% sequentially. Our Southeast results show the power of our brands in both the new construction and repair and remodeling channels. Our year-over-year revenue growth was driven by a 5% increase in R&R sales and a 6% increase in new construction sales. The prior year quarter was impacted by Hurricane Ian, where $12 million in sales were deferred into the fourth quarter of 2022. Order demand in the Southeast increased 16% versus the prior year quarter, including double-digit order unit volume growth. Sales at our Western segment were $97 million, down 1% versus the prior year quarter. Western organic sales contracted 9% versus the prior year quarter and more flat sequentially. Organic order demand out West declined 4% versus the prior year quarter, an improvement from the 20% year-over-year decline seen in the second quarter, driven primarily by improvements in the new construction demand. During the quarter, our Western Window System Series 300 minimal multi-slide door was awarded an Editor's Pi from the architect newspapers as part of their 2023 best of products awards. We will be showcasing this product along with other premium products in our Western Window Systems architectural design studio in Santa Monica, California set to open on November 16. This innovative studio will provide a location for architects, builders and dealers for a hands-on experience with our premium products. It will also provide an opportunity to collaborate with our product experts to help design the best premium indoor outdoor living spaces in the industry for any custom project. Our Martin Garage Door acquisition, which closed late in 2022, launched our new Keystone Pandor in the third quarter, featuring an innovative new design that provides cleaner lines that homeowners desire. We are already seeing order growth from the launch of the Martin Grade door in our Texas New South markets. We look forward to launching Martin Derived stores and other New South markets as well as in our East Coast distribution network. For our new South direct-to-consumer brand, we are executing our Texas takeover initiative, Texans across the Austin, Dallas, Fort Worth, Houston and San Antonio metro areas now have the opportunity to experience the value of custom factory direct new subproducts along with the Martin Garage doors. During the third quarter, we began production of our latest innovation, Diamond glass, our laminated ultraligglass technology featuring Corning architectural technical glass. This innovation provides homeowners with improved clarity, lower weight, through-time scratch resistant and improved energy efficiency while maintaining impact resistance that customers expect from our industry-leading impact brands. WinDoor products featuring diamond glass as the standard offering are available today, and we will be adding diamond glass to as a premium option to our PGT-branded products soon. I'm excited to announce that our first win triple glass fabrication facility will be in Prince George County, Virginia. We appreciate the support of state and local leadership and look forward to being a trusted community partner. Equipment installation, testing and local team member hiring began in the third quarter, and production is scheduled to begin in the first quarter of 2024. Now, I'd like to turn the call over to Craig Henderson to review our third quarter results in greater detail. Craig?

謝謝你，布拉德。大家早安，感謝您今天加入我們。在我們討論季度收益結果之前，我想承認最近的交易刪除和媒體的市場猜測。我們今天不會對這些謠言發表評論，而是專注於展示我們強勁的獲利業績。我們將繼續與所有投資者進行建設性對話，並歡迎他們的觀點。我們始終對實現股東價值最大化的機會持開放態度。接下來，讓我來看看今天的獲利結果。我們今天稍早發布的第三季財務業績表明，在我們目前所處的動態市場條件下，我們有能力滿足對產品不斷增長的需求。我們對新建、維修和改造管道的平衡投資是一種結構性優勢，使我們能夠團隊在過去一年中持續創造創紀錄的銷售額和穩定的利潤。我們第三季的財務表現有力地證明了對我們優質產品的需求仍然強勁，整個團隊正在全力執行。我們的團隊成員是我們持續成功的核心，為了表彰他們的努力，我們在第三季宣布向未參與公司長期激勵計畫的團隊成員特別授予 395,000 股限制性股票。轉向投影片 4。第三季我們的總營收為 4 億美元，調整後的 EBITDA 為 7,800 萬美元，即 19.6%。由於我們持續專注於生產力和營運執行，我們能夠在本季度實現強勁的獲利能力。與去年第三季相比，我們的營收年增 4%，調整後的 EBITDA 成長 15%。銷售年成長是由維修和改造管道成長 11% 推動的，但部分被新建築持續疲軟（下降 7%）所抵消。儘管高利率對當前房地產市場狀況產生了影響，但對我們產品的強勁需求仍在持續。我們繼續在業界領先的交貨時間內保持正常的價格/成本關係，品質、服務和價值主張正在幫助我們提高品牌和地區的市場滲透率。接下來，在投影片 5 上，讓我們仔細看看第三季的銷售趨勢和關鍵舉措。我們東南部業務的銷售額達到創紀錄的 3.03 億美元，比去年第三季成長 5%，比上一季成長 5%。我們的東南業績顯示了我們品牌在新建和維修改造管道中的力量。我們的營收年增率是由 R&R 銷售成長 5% 和新建築銷售成長 6% 推動的。去年同期受到颶風伊恩的影響，1,200 萬美元的銷售額被推遲到 2022 年第四季。東南部的訂單需求比去年同期成長了 16%，其中訂單單位量實現了兩位數的成長。我們西部部門的銷售額為 9,700 萬美元，比去年同期下降 1%。西方有機銷售額與去年同期相比下降了 9%，環比持平。西部地區的有機訂單需求較上年同期下降 4%，較第二季 20% 的年減率有所改善，這主要是由於新建需求的改善所致。本季度，我們的 Western Window System 系列 300 最小多滑門榮獲建築師報紙頒發的編輯獎，作為 2023 年最佳產品獎的一部分。我們將在位於加州聖莫尼卡的Western Window Systems 建築設計工作室中展示該產品以及其他優質產品，該工作室將於11 月16 日開幕。這個創新工作室將為建築師、建築商和經銷商提供實踐體驗的場所與我們的優質產品。它還將提供與我們的產品專家合作的機會，幫助為任何定制項目設計業內最好的優質室內室外生活空間。我們對 Martin Garage Door 的收購於 2022 年底完成，並在第三季推出了新的 Keystone Pandor，採用創新的新設計，提供房主想要的更簡潔的線條。隨著 Martin Grade 門在德克薩斯州新南市場的推出，我們已經看到了訂單的成長。我們期待在我們的東海岸分銷網絡和其他新南市場開設 Martin Derived 商店。對於我們新的南方直接面向消費者的品牌，我們正在執行我們的德克薩斯州收購計劃，奧斯汀、達拉斯、沃斯堡、休斯頓和聖安東尼奧都市區的德克薩斯人現在有機會體驗定制工廠直接新子產品的價值與馬丁車庫門。第三季度，我們開始生產最新的創新產品—鑽石玻璃，這是我們採用康寧建築技術玻璃的層壓超玻璃技術。這項創新為房主提供了更高的透明度、更輕的重量、長期的防刮擦性和更高的能源效率，同時保持了客戶對我們行業領先的衝擊品牌的期望的抗衝擊性。以鑽石玻璃為標準產品的 WinDoor 產品現已上市，我們很快就會將添加鑽石玻璃作為我們 PGT 品牌產品的高級選項。我很高興地宣布，我們的第一個三重玻璃製造工廠將位於維吉尼亞州喬治王子縣。我們感謝州和地方領導層的支持，並期待成為值得信賴的社區合作夥伴。設備安裝、測試和本地團隊成員招聘已於第三季度開始，生產計劃於 2024 年第一季開始。現在，我想將電話轉給 Craig Henderson，以更大程度地回顧我們第三季度的業績。細節。克雷格？

Thank you, Jeff. Turning to Slide 6. Consolidated net sales were $400 million in the third quarter, up 4% from the prior year third quarter. The year-over-year increase in net sales was driven by a 1% organic increase from our legacy business. Unit volume decline was 1%, partially offset by a 2% price impact from price increases taken in the prior year. Our Southeast segment sales grew 5% from the prior year third quarter, while our Western Sales segment were down 1% from the prior year. During the third quarter, our sales breakdown was 63% R&R and 37% new construction. R&R sales were up 11% compared to the third quarter of 2022. We delivered strong R&R sales growth as demand for our products continues across all geographies. New construction sales were down 7% versus the prior year third quarter. New construction activity reflects improvement from a year-over-year decline of 12% experienced in the second quarter. Gross profit was $162 million in the third quarter an increased 8% compared to the prior year third quarter. Our Q3 results were driven by continued solid performance from our operating teams, the impact of prior year pricing actions, offsetting material and wage inflation and additional cost management discipline, partially offset by reduced fixed cost leverage from lower volumes. Selling, general and administrative expenses were $102 million, a decrease of 1% in the third quarter compared to the prior year, driven by strong cost management discipline, partially offset by increased marketing investment. Adjusted EBITDA of $78 million or an EBITDA margin of 19.6% was 15% higher than the prior year third quarter. This year-over-year increase in percent was driven mainly by operational efficiencies and the impact of pricing actions. Our favorable non-GAAP adjustments for the quarter related to an $800,000 adjustment for the closing of our Charlotte and Raleigh Durham, North Carolina showrooms. This adjustment offset a portion of the $2.5 million charge taken during Q2. Our tax expense for the quarter came in at 25.9%. We reported adjusted net income of $39 million or $0.66 per diluted share compared to $30 million or $0.55 per diluted share in the third quarter of 2022. Turning now to our balance sheet on Slide 7. At the end of the third quarter, we had net debt of $602 million and total liquidity of $214 million. As of the end of the third quarter, we had a trailing 12-month bank covenant net debt to adjusted EBITDA ratio of 2.2x. We generated operating cash flow of $80 million in the third quarter. This strong performance enabled us to reduce our revolver borrowings by $39 million. In addition, we continued execution of our 3-year $250 million share repurchase program and returned nearly $30 million to shareholders through the repurchase of 1 million shares. 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. Moving on to our guidance on Slide 8. For the fourth quarter, we anticipate revenue to be in the range of $325 million to $350 million. We anticipate adjusted EBITDA to be within the range of $51 million to $57 million. For the fourth quarter, we expect sales volume to decrease seasonally from our third quarter. Year-over-year unit volumes are expected to contract versus an ineffective Q4 given the uncertainty created by the recent increases in interest rates. We expect strong operations execution, along with continued cost discipline will enable us to continue to deliver strong results in this uncertain market. We expect to spend $15 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 the spending will ensure that our new glass operations will launch successfully. Despite this increased investment, we continue to hold our target leverage in the low 2x EBITDA range. And now, I would like to turn the call back over to Jeff.

謝謝你，傑夫。轉投投影片 6。第三季綜合淨銷售額為 4 億美元，比去年第三季成長 4%。淨銷售額的年成長是由我們傳統業務 1% 的有機成長所推動的。單位銷售量下降 1%，部分被上一年價格上漲 2% 的價格影響所抵銷。我們的東南部銷售部門的銷售額比去年第三季成長了 5%，而我們的西部銷售部門的銷售額比去年同期下降了 1%。第三季度，我們的銷售細分為 63% 的 R&R 和 37% 的新建築。與 2022 年第三季相比，R&R 銷售額成長了 11%。隨著所有地區對我們產品的需求持續成長，我們的 R&R 銷售額實現了強勁成長。新建築銷售量較去年第三季下降 7%。新建築活動較第二季年減 12% 有所改善。第三季毛利為 1.62 億美元，比去年第三季成長 8%。我們第三季的業績是由我們的營運團隊持續穩健的業績、上一年定價行為的影響、抵銷材料和薪資通膨以及額外的成本管理紀律推動的，部分抵銷了銷售下降帶來的固定成本槓桿的降低。第三季的銷售、一般和管理費用為 1.02 億美元，較上年同期下降 1%，主要得益於嚴格的成本管理紀律，但部分被行銷投資的增加所抵消。調整後 EBITDA 為 7,800 萬美元，EBITDA 利潤率為 19.6%，比去年第三季高出 15%。這一同比增長主要是由營運效率和定價行為的影響所推動的。我們本季有利的非公認會計原則調整與關閉北卡羅來納州夏洛特和羅利達勒姆展廳的 80 萬美元調整有關。此次調整抵銷了第二季 250 萬美元費用的一部分。本季我們的稅費率為 25.9%。我們報告的調整後淨利潤為3,900 萬美元，即稀釋後每股收益0.66 美元，而2022 年第三季為3,000 萬美元，即稀釋後每股收益0.55 美元。現在轉向幻燈片7 上的資產負債表。第三季末，我們的淨收益為債務為 6.02 億美元，流動資金總額為 2.14 億美元。截至第三季末，我們的過去 12 個月銀行契約淨負債與調整後 EBITDA 的比率為 2.2 倍。第三季我們產生了 8,000 萬美元的營運現金流。這一強勁的業績使我們能夠減少 3900 萬美元的左輪借款。此外，我們繼續執行為期3年2.5億美元的股票回購計劃，透過回購100萬股股票向股東返還近3,000萬美元。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。接下來是我們對幻燈片 8 的指導。對於第四季度，我們預計收入將在 3.25 億美元至 3.5 億美元之間。我們預計調整後的 EBITDA 將在 5,100 萬美元至 5,700 萬美元之間。對於第四季度，我們預計銷量將比第三季度季節性下降。鑑於近期利率上升帶來的不確定性，第四季的銷售量預計將年減。我們預計，強大的營運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取得強勁的業績。除了正常的銷售運作率 3% 至 4% 的資本支出外，我們預計 2023 年將花費 1,500 萬美元購買新的玻璃營運設備和設施。這一更高水準的支出將確保我們新的玻璃業務順利啟動。儘管增加了投資，我們仍將目標槓桿率保持在 2 倍 EBITDA 的低水準範圍內。現在，我想把電話轉回傑夫。

Thanks, Craig. I'll conclude today's call with a summary of why we believe PGT Innovations is in an excellent position to continue to deliver above-market long-term growth despite the challenging near-term demand environment. We recognize that the current housing market is being constrained by affordability challenges. The current conditions have added to the pent-up need for additional housing. We expect that once interest rates stop increasing and return to normal levels, this pent-up demand will provide significant tailwinds for our business. While affordability for new homes has gotten better with the various incentives being offered by builders, conditions continue to affect new homebuyers and homeowners in the near term. Our repair and remodeling channel is boosted by the lock-in effect of lower fixed rate mortgages, meaning homeowners are likely to stay in their current homes longer. The record level of home equity and the increase in age of housing stock, means these homeowners will be more willing to take on large remodeling projects to update their homes once interest rates stabilize. This lock-in effect continues to positively impact the new construction activity as well as the dramatic reduction in existing home sales is helping drive a more stable recovery in new home construction. Longer term, industry sources continue to suggest that there are several macroeconomic trends that will affect growth in new construction and R&R markets over the coming years. Turning to Slide 9. PGT Innovations has built a solid foundation to take advantage of these long-term trends, and we'll see a greater benefit than others in our space when the economy stabilizes. Our strategy is to focus on markets where demographic trends tend to be 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 premium window, door and garage door brands. Our products and 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 introductions, which further facilitates balanced portfolio growth in both the new construction and R&R channels. Third, operational improvements and capital investments have increased our capacity 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 and expand our customer base with new technologies such as our diamond glass and thin triple glass. Lastly, we are committed to increasing shareholder value through our robust 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 our next level of growth and continue to create long-term value for our shareholders and customers. Throughout this volatile macroeconomic environment, we remain focused on disciplined cost management while delivering on our value proposition to our customers. This commitment has allowed us to achieve and maintain strong profitability. We will continue to invest in our brands, our capacity and automation and in our people to outperform the competition and deliver returns for our investors both in the near and long term. We remain committed to delivering products with the features, performance and value demanded by our builders and customers. We continue to execute our plans to create long-term value for our shareholders, including the $250 million share repurchase program. During the third quarter, we invested nearly $30 million in open market transactions to repurchase our shares for a total of $75 million in share repurchases to date. In addition, we believe that our current trading range does not properly reflect the long-term potential for shareholder value for each innovation shareholders. And all the actions we've just discussed will drive shareholder value higher. I want to thank all of our team members for their dedication and belief in our company. At this time, let me begin the Q&A. Operator?

謝謝，克雷格。在今天的電話會議結束時，我將總結為什麼我們相信 PGT Innovations 處於有利位置，能夠繼續實現高於市場水平的長期成長，儘管近期需求環境充滿挑戰。我們認識到目前的房屋市場正受到負擔能力挑戰的限制。目前的情況加劇了被壓抑的額外住房需求。我們預計，一旦利率停止上漲並恢復到正常水平，這種被壓抑的需求將為我們的業務提供巨大的推動力。雖然隨著建築商提供的各種激勵措施，新房的負擔能力有所改善，但短期內的情況繼續影響新購房者和房主。較低的固定利率抵押貸款的鎖定效應推動了我們的維修和改造管道，這意味著房主可能會在現有房屋中停留更長時間。創紀錄的房屋淨值水準和房屋存量的增加意味著，一旦利率穩定，這些房主將更願意承擔大型改建專案來更新他們的房屋。這種鎖定效應持續對新房建設活動產生積極影響，而現房銷售的大幅減少有助於推動新房建設更加穩定的復甦。從長遠來看，產業消息人士繼續表示，有幾個宏觀經濟趨勢將影響未來幾年新建建築和 R&R 市場的成長。轉向幻燈片 9。PGT Innovations 已經為利用這些長期趨勢奠定了堅實的基礎，當經濟穩定時，我們將比我們領域的其他公司獲得更大的收益。我們的策略是專注於人口趨勢往往比全國平均更有利的市場。首先，我們是全國領導者，擁有過去幾年加強的優秀品牌組合。我們正在執行我們的成長策略，包括擴展到鄰近的建築產品類別，以補充我們現有的優質門窗和車庫門品牌組合。我們的產品以及耐衝擊和室內戶外生活市場繼續受到關注。我們為人口成長強勁的地區提供服務。其次，透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通路的平衡成長。第三，營運改善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，並透過鑽石玻璃和薄三層玻璃等新技術擴大我們的客戶群。最後，我們致力於透過強勁的獲利能力增加股東價值，並透過股票回購計畫向股東返還資本。我們相信 PGT Innovations 處於有利地位，可以應對當前的環境，並正在努力為我們的下一階段成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。在這個動盪的宏觀經濟環境中，我們仍然專注於嚴格的成本管理，同時向客戶提供我們的價值主張。這項承諾使我們能夠實現並保持強勁的獲利能力。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。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。我們繼續執行為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。第三季度，我們在公開市場交易中投資了近 3,000 萬美元來回購股票，迄今為止，股票回購總額為 7,500 萬美元。此外，我們認為我們目前的交易範圍並不能正確反映每位創新股東的股東價值的長期潛力。我們剛才討論的所有行動都將提高股東價值。我要感謝我們所有團隊成員的奉獻和對我們公司的信任。下面我就開始問答環節。操作員？

We will now begin the question-and-answer session. (Operator Instructions). At this time, we'll pause momentarily to assemble a roster. Our first question comes from Keith Hughes from Truist.

我們現在開始問答環節。 （操作員說明）。此時，我們將暫停一下以整理名單。我們的第一個問題來自 Truist 的 Keith Hughes。

The order growth, I think you said it was at 16% in the Southeast, double-digit volume is pretty impressive. I'm a little surprised that the earnings in the revenue guidance is not strong or kind of flat at the midpoint. Can you talk about what kind of offsets you're going to see, it sounds like the South east (inaudible).

我想你說過東南部的訂單增加了 16%，兩位數的數量相當令人印象深刻。我有點驚訝的是，營收指引中的收益並不強勁，或是在中點持平。您能談談您將看到什麼樣的偏移嗎？聽起來像東南（聽不清楚）。

Yes. Keith, I'll speak a little bit and then Craig, you can add some details. But basically, the fourth quarter, we did have that push from last year's hurricane into the fourth quarter. So in terms of sequential growth, it's going to be a challenge. There was $12 million push from Q3 of last year into Q4 due to Hurricane Ian. But if you look at the full year, again, the full year guidance with our fourth quarter guidance we just gave, we're going to basically be flat for the year. We were $1.5 billion last year, call it, $1.5 billion this year. And that's in the face of new construction being down 22% and R&R down 8%. So we're executing. We're gaining market share. And even more importantly, we're leveraging our EBITDA. Our EBITDA last year was $253 million, this year is going to be plus $20 million. It will be $275-ish. So quite frankly, everything is clicking right and we're performing incredibly well in gaining share despite the housing.

是的。基思，我會講一點，然後克雷格，你可以加入一些細節。但基本上，第四季度，我們確實從去年的颶風推動到了第四季。因此，就連續成長而言，這將是一個挑戰。由於伊恩颶風，去年第三季到第四季的資金增加了 1200 萬美元。但如果你再看看全年，我們剛剛給出的第四季度指導的全年指導，我們今年基本上將持平。去年我們的營收為 15 億美元，今年也可以說是 15 億美元。這是在新建築下降 22%、R&R 下降 8% 的情況下實現的。所以我們正在執行。我們正在贏得市場份額。更重要的是，我們正在利用我們的 EBITDA。去年我們的 EBITDA 為 2.53 億美元，今年將增加 2,000 萬美元。價格約為 275 美元。坦白說，一切都進展順利，儘管存在住房問題，但我們在贏得市場份額方面表現得非常好。

Great. Evidence things are going well here. I guess the question is with the new facility in Virginia on the triple Panglass. Do you have any sort of feel or any sort of orders that would tell you what kind of revenue you could get out of the facility. I assume that facility, by the way, goes to other third-party manufacturers. Is that right? Any kind of view on what kind of orders you're going to get?

偉大的。事實證明這裡一切進展順利。我想問題出在維吉尼亞州三重潘格拉斯的新設施。您是否有任何感覺或任何訂單可以告訴您可以從該設施中獲得什麼樣的收入？順便說一句，我認為該設施屬於其他第三方製造商。是對的嗎？對於您將獲得什麼樣的訂單有什麼看法嗎？

Yes. It does third-party manufacturers as well as internal needs. We will be putting that the Fin triple solution in our Anlin products, for instance, it will make it the most energy-efficient vinyl window in the market. And that's on the slate and also third-party sales, both finished units and raw glass. We actually also signed a distribution agreement about 3 weeks ago with Corning. And we were able to also sell raw Fusion raw drawn glass to other glass manufacturers like the big guys, from Cardinal, Guardian, Oldcastle in the world. And we're actively trying to pursue those relationships. We do have a potential customer for the full unit glass to drop a full pain into. And we also have a potential distributor, a maker of that glass that we'll be selling fusion drawn glass too. Nothing signed at this point, but definitely are in heavy discussions. The facility is slated to be operational at the end of the first quarter of next year. We're going to do a ribbon cutting, obviously, this year.

是的。它滿足第三方製造商以及內部需求。例如，我們將把 Fin 三重解決方案應用到我們的 Anlin 產品中，它將使其成為市場上最節能的乙烯基窗戶。這既包括在名單上，也包括第三方銷售，包括成品玻璃和玻璃原料。實際上，大約三週前我們也與康寧簽署了分銷協議。我們也能夠向其他玻璃製造商（例如來自世界各地的 Cardinal、Guardian、Oldcastle 等大公司）銷售 Fusion 原拉製玻璃。我們正在積極努力尋求這些關係。我們確實有一個潛在客戶需要整塊玻璃，可以讓我們感到非常痛苦。我們還有一個潛在的經銷商，一家玻璃製造商，我們也將銷售熔融拉製玻璃。目前尚未簽署任何協議，但肯定正在進行激烈的討論。該設施預計將於明年第一季末投入營運。顯然，今年我們將進行剪綵。

The next question comes from Michael Rehaut from JPMorgan.

下一個問題來自摩根大通的麥可‧雷豪特。

Good morning. Douglas Wardlaw for Mike. So you guys said the organic sales increased by 1% driven by 2% from price, and that was partially offset by volume. So can you just add a little bit more color or detail on what you saw from the market regarding price this past quarter and how you can see that potentially evolving moving into next year?

早安.道格拉斯沃德勞（Douglas Wardlaw）飾演麥克。所以你們說有機銷售額成長了 1%，價格成長了 2%，這部分被銷量所抵銷。那麼，您能否就您從上個季度的市場價格中看到的情況添加更多的色彩或細節，以及您如何看待明年可能發生的變化？

Yes. No, price has been stable, Doug, and we don't see any pressure to reduce prices. We're -- we believe that we have pricing power, and there's still strong demand within the geographies that we serve. We see Western segments recovering as new construction continues to heal and the Southeast remains strong. So there's not a lot of talk from a price concession perspective.

是的。不，價格一直穩定，道格，我們沒有看到任何降價的壓力。我們相信我們有定價權，而且我們服務的地區仍然有強勁的需求。我們看到，隨著新建築的不斷癒合，西部地區正在復甦，而東南部地區仍然強勁。因此，從價格優惠的角度來看，沒有太多討論。

Got it. And you just said the Western region is more tied to new construction. And last quarter, there was a bit of optimism that it would improve. And I guess on a big picture basis, would you say that improvement sequentially met your standards? And moving forward, how are you guys thinking about new residential, particularly in that Western region moving into the early parts of '24?

知道了。您剛才說西部地區與新建工程的連結更加緊密。上個季度，人們對情況有所改善持樂觀態度。我想從大局來看，您是否會說改進順序符合您的標準？展望未來，你們如何看待新住宅，特別是在進入 24 年初的西部地區？

Yes. From a Western perspective, organic growth on the demand side grew 5% sequentially. And while it's taken a little longer to see some of the activity flow through to our business, there's always a lag between the increase in starts. We are optimistic that, that business will grow in the fourth quarter and then into the next year.

是的。從西方角度來看，需求方面的有機成長較上季成長了5%。雖然一些活動流向我們的業務需要更長的時間，但啟動數量的增加之間總是存在著延遲。我們樂觀地認為，該業務將在第四季度成長，然後持續到明年。

Yes. We have several initiatives going, whether it's our CRI installation arm that we are heavily involved in with some builders to install our product that's growing. And also, again, the innovation with the thin triples once we get that in our Anlin product, we really think that's going to help differentiate ourselves in the marketplace and gain share there as well. So we're actually very optimistic about them, the West and what we have going there.

是的。我們正在採取多項舉措，無論是我們的 CRI 安裝部門，還是我們與一些建築商密切合作來安裝我們不斷成長的產品。而且，一旦我們在 Anlin 產品中實現了薄三重創新，我們真的認為這將有助於我們在市場上脫穎而出並獲得市場份額。所以我們實際上對他們、西方以及我們在那裡所做的事情非常樂觀。

(Operator Instructions). Our next question comes from Joe Ahlersmeyer from Deutsche Bank.

（操作員說明）。我們的下一個問題來自德意志銀行的 Joe Ahlersmeyer。

Congrats on the results. Yes. To your point about growth in a tough environment. I'm just thinking about next year, all the things that could potentially go right for you. And I'm just looking at consensus EBITDA against your updated range, really just up 4% next year. And I'm just wondering how you kind of look at that in the backdrop of stable R&R, potentially much stronger new construction, all the things that you're doing to outgrow those market growth rates, just seems a little bit like there's potential to that.

祝賀結果。是的。關於在艱難環境中成長的觀點。我只是在考慮明年，所有可能適合你的事情。我只是根據您的更新範圍查看共識 EBITDA，明年實際上僅增長 4%。我只是想知道，在穩定的 R&R、可能更強大的新建築、以及您為超越市場增長率而所做的所有事情的背景下，您如何看待這一點，似乎有一點潛力。

Yes, definitely, we see upside next year. I mean if you look at the stable environment that we're going into in '24 in spite of the higher interest rates, we have consistently been able to outperform the national averages due to our footprint and due to the penetration of both impact-resistant products in the Southeast and indoor/outdoor in out of the West. And so, we see no reason why that's not going to continue and we'll be able to deliver strong results next year.

是的，我們肯定會看到明年的上漲。我的意思是，如果你看看我們在 24 年進入的穩定環境，儘管利率較高，我們一直能夠超越全國平均水平，因為我們的足跡以及抗衝擊的滲透產品在東南部，室內/室外產品在西部。因此，我們認為這種情況沒有理由不繼續下去，明年我們將能夠取得強勁的業績。

Yes. And we do plan on next year actually announcing guidance for next year. We've seen definitely a stabilization in this market we're operating in, with ever increasing rates. We've seen a good stabilization of order growth and patterns that we feel we've got a good handle on 2024. So we -- on our next call, we'll be announcing that guidance from our end, and we do expect growth.

是的。我們確實計劃明年實際宣布明年的指導。我們已經看到我們所經營的這個市場已經穩定下來，而且利率不斷上升。我們已經看到訂單成長和模式的良好穩定，我們認為我們已經很好地應對了 2024 年的情況。因此，在下次電話會議上，我們將宣布我們的指導方針，我們確實預計會出現成長。

For the full year, you'll be giving the guidance is what you're saying?

全年，您將提供指導，這就是您所說的嗎？

Yes.

是的。

Okay. Cool. And then just thinking about the capital you've allocated to buybacks, is it right to think then in the context of your comments there that this is more of a reflection of your view on the valuation of your stock relative to those expectations for profits? Or is it a lack of M&A opportunity, just having enough capital that you can do the internal investments that you wanted to do. And so, as we look to kind of understand how much more you could do on the buybacks, what is sort of a price in your mind for where it starts to be more attractive to pull back on the buybacks?

好的。涼爽的。然後，考慮您分配給回購的資本，在您的評論背景下，認為這更多地反映了您對股票估值相對於利潤預期的看法，是否正確？或者是缺乏併購機會，只是有足夠的資本來做你想做的內部投資。因此，當我們希望了解您還可以在回購方面做多少事情時，您認為回購股票開始更具吸引力的價格是多少？

Yes, we really balance that with opportunities. M&A has opportunity still despite the interest rate environment we're operating in. We're actively talking to 2 different companies now. But in terms of our choice on share buyback, look, we -- our stock is trading below where it should trade. Our Board firmly believes that. And that's why we allocated $250 million to buy back stock in our share repurchase program. So -- and we may able to execute a total of $75 million to date, and we think we'll be executing more buybacks. So I'm not comfortable in commenting on the price we look at. I think that fluctuates based off our need of cash and other opportunities. But we definitely think returning capital to shareholders via the former share buybacks right now is a great opportunity for us.

是的，我們確實平衡了這一點和機會。儘管我們所處的利率環境如此，併購仍然有機會。我們現在正在與兩家不同的公司積極談判。但就我們對股票回購的選擇而言，我們的股票交易價格低於其應有交易價格。我們的董事會堅信這一點。這就是為什麼我們在股票回購計畫中撥款 2.5 億美元來回購股票。因此，迄今為止，我們可能能夠執行總計 7500 萬美元的資金，我們認為我們將執行更多的回購。所以我不願意評論我們所看到的價格。我認為這會根據我們對現金和其他機會的需求而波動。但我們絕對認為，現在透過先前的股票回購向股東返還資本對我們來說是一個很好的機會。

Yes. And I would say that the business is still generating a lot of free cash flow. And so, we're going to put that to use. And we believe that returning capital to shareholders is a great use of that -- of those excess funds.

是的。我想說的是，該業務仍在產生大量自由現金流。因此，我們將利用它。我們相信，向股東返還資本是這些多餘資金的一個很好的利用。

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

問答環節到此結束。我想將會議轉回給克雷格·安德森（Craig Anderson）發表閉幕詞。

Thank you for joining today's call. We appreciate your continued support to PGT Innovations, and we look forward to connecting with you soon at upcoming investor conferences, and we're looking forward to discussing our full year results and our 2024 guidance in February. Thanks so much.

感謝您參加今天的電話會議。我們感謝您對 PGT Innovations 的持續支持，我們期待很快在即將舉行的投資者會議上與您聯繫，並期待在 2 月份討論我們的全年業績和 2024 年指導。非常感謝。

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。您現在可以斷開連線。