Primo Brands Corp (PRMB) 2023 Q4 法說會逐字稿

Good morning.

早安.

My name is Joanna, and I will be your conference operator today.

我叫喬安娜，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the Primo Water Corporation's fourth-quarter 2023 earnings conference call.

此時此刻，我歡迎大家參加 Primo Water Corporation 的 2023 年第四季財報電話會議。

(Operator Instructions)

（操作員說明）

I'll now turn the call over to Jon Kathol, Vice President, Investor Relations.

我現在將把電話轉給投資人關係副總裁 Jon Kathol。

Please go ahead.

請繼續。

Welcome to Primo Water Corporation's fourth quarter 2023 earnings conference call.

歡迎參加 Primo Water Corporation 2023 年第四季財報電話會議。

All participants are currently in listen-only mode.

所有參與者目前均處於僅監聽模式。

The call is being webcast live on Primo Water's website at primowatercorp.com and will be available there for playback.

此次電話會議將在 Primo Water 網站 primowatercorp.com 上進行網路直播，並可在該網站進行回放。

This conference call contains forward-looking statements, including statements concerning the company's future financial and operational performance.

本次電話會議包含前瞻性陳述，包括有關公司未來財務和營運績效的陳述。

These statements should be considered in connection with cautionary statements and disclaimers contained in the safe harbor statements in this morning's earnings press release and the company's annual report on Form 10-K and quarterly reports on Form 10-Q and other filings with securities regulators.

這些聲明應與今天上午的收益新聞稿中的安全港聲明中包含的警告聲明和免責聲明以及公司 10-K 表年度報告和 10-Q 表季度報告以及其他向證券監管機構提交的文件一起考慮。

The company's actual performance could differ materially from these statements, and the company undertakes no duty to update these forward-looking statements, except as expressly required by applicable law.

本公司的實際表現可能與這些陳述有重大差異，本公司不承擔更新這些前瞻性陳述的責任，除非適用法律明確要求。

A reconciliation of any non-GAAP financial measures discussed during the call with the most comparable measures in accordance with GAAP when the data is capable of being estimated, is included in the company's fourth-quarter earnings announcement released earlier this morning and on the Investor Relations section of the company's website at primowatercorp.com. We have also included a deck on our website that was designed to assist you throughout our discussion.

電話會議期間討論的任何非公認會計原則財務指標與根據公認會計原則（在能夠估計數據時）最具可比性的指標的對賬，已包含在該公司今天上午早些時候發布的第四季度收益公告和投資者關係中該公司網站 primowatercorp.com 的部分。我們還在我們的網站上提供了一個演示文稿，旨在幫助您完成我們的討論。

I am accompanied by Robbert Rietbroek, Primo Water's Chief Executive Officer; David Hass, Chief Financial Officer.

陪同我的有 Primo Water 執行長 Robbert Rietbroek；大衛哈斯，財務長。

With that, I will now turn the call over to Robert.

現在，我將把電話轉給羅伯特。

Thank you, John, and good morning, everyone.

謝謝約翰，大家早安。

I'm excited to speak to you today as the new CEO of Primo Water and to be a part of what I believe is the premier and the only publicly traded pure-play water company.

我很高興今天作為 Primo Water 的新任執行長與大家交談，並成為我認為是首屈一指的、唯一公開交易的純水公司的一員。

I joined Primo Water in January of this year, bringing more than 25 years of leadership experience at Fortune 200 consumer goods companies, including PepsiCo, Kimberly-Clark, and Procter & Gamble.

我於今年 1 月加入 Primo Water，帶來了在百事可樂、金佰利和寶潔等財富 200 強消費品公司超過 25 年的領導經驗。

For the past five years, I served as Senior Vice President and General Manager of Quaker Foods North America, a reporting segment of PepsiCo.

在過去的五年裡，我擔任桂格食品北美公司（百事公司旗下報告部門）的高級副總裁兼總經理。

The team has been tremendous in their welcome and the pride of Primo Water is abundantly evident.

團隊受到了熱烈的歡迎，Primo Water 的自豪感顯而易見。

I would like to extend a personal thank you to all our associates as well as our Board for their warm hospitality and openness.

我謹向我們所有員工以及董事會的熱情款待和開放表示個人的感謝。

I would also like to thank my predecessor, Tom Harrington for his efforts and guidance as a dedicated leader of Primo Water, including CEO for the last five years.

我還要感謝我的前任 Tom Harrington 作為 Primo Water 的敬業領導者（包括過去五年的執行長）所做的努力和指導。

He should be recognized for delivering strong 2023 results, and we wish him all the best in his well-deserved retirement.

他應該因 2023 年取得的強勁業績而受到認可，我們祝他在當之無愧的退休生活中一切順利。

With that, let's shift gears to the topics for today's call.

接下來，讓我們轉向今天電話會議的主題。

I'll provide some initial observations from our ongoing onboarding, including where we have strength as well as high-impact opportunities.

我將提供一些對我們正在進行的入職培訓的初步觀察，包括我們擁有優勢和高影響力的機會。

After that, David will cover the highlights of our recently completed transaction.

之後，大衛將介紹我們最近完成的交易的亮點。

Then he will review our financial performance in greater detail and outline our 2024 outlook.

然後他將更詳細地回顧我們的財務表現並概述我們 2024 年的展望。

Then I'll be back to share my priorities or what I call our must wins, which have been developed to capture embedded opportunity and further enable profitable growth delivery.

然後我將回來分享我的優先事項或我所說的“必須獲勝”，這些勝利是為了抓住嵌入的機會並進一步實現盈利增長而製定的。

We'll then open it up to your questions.

然後我們將回答您的問題。

Since arriving seven weeks ago, I've spent quality time with our valued associates and customers.

自從七週前到達以來，我與我們尊貴的同事和客戶度過了美好的時光。

I have also connected with members of the financial community in addition to reviewing last year's perception study.

除了回顧去年的看法研究之外，我還與金融界的成員進行了聯繫。

I look forward to hearing for more of you in the next several days and in the coming months as we begin to attend investor conferences and events.

當我們開始參加投資者會議和活動時，我期待在接下來的幾天和幾個月內聽到你們更多的聲音。

I'm of the opinion that Primo Water is set up for growth as I've had the opportunity to learn more about our company's assets, resources, and practices across five broad areas.

我認為 Primo Water 的成立是為了實現成長，因為我有機會更多地了解我們公司在五個廣泛領域的資產、資源和實踐。

Specifically, one, our associates; two, the scale and breadth of our offerings; three, our brands; four, our water stewardship practices and sustainability; and five, our production and distribution capabilities.

具體來說，一是我們的員工；二是我們產品的規模和廣度；三、我們的品牌；四、我們的水資源管理實踐與永續性；五是我們的生產和分銷能力。

These observations support the ability to fulfill our growth potential as a pure-play water company in the large, highly fragmented, and growing North America water markets.

這些觀察結果支持我們作為一家純粹的水務公司在龐大、高度分散且不斷增長的北美水務市場中發揮成長潛力的能力。

First, let's talk about our associates.

首先，我們來談談我們的同事。

They're passionate about what we do.

他們對我們所做的事情充滿熱情。

They're embedded in our communities and live where we serve our customers.

他們融入我們的社區並生活在我們為客戶提供服務的地方。

In the last seven weeks, I've met with numerous associates while visiting branches and distribution facilities in some of our largest markets in California, Texas, Georgia, and Florida.

在過去的七周中，我在參觀加利福尼亞州、德克薩斯州、喬治亞州和佛羅裡達州一些最大市場的分支機構和分銷設施時會見了許多同事。

I observed firsthand that our associates take the idea of serving the customer to a level which I believe sets us apart in the marketplace.

我親眼所見，我們的員工將服務客戶的理念提升到了一個水平，我相信這使我們在市場上脫穎而出。

Continuing to empower our associates will be critical to providing superior service to our customer base across our water offerings.

持續為我們的員工提供支援對於為我們的水務客戶群提供優質服務至關重要。

Second, our constantly expanding scale and breadth in North America is quite impressive.

第二，我們在北美不斷拓展的規模和廣度是相當可觀的。

Leveraging our geographically diverse footprint, we can serve customers at an individual delivery address in our Water Direct business or work with leading retail partners to provide direct-to-retail distribution.

憑藉我們在地理上多樣化的足跡，我們可以在 Water Direct 業務的單獨送貨地址為客戶提供服務，或與領先的零售合作夥伴合作提供直接零售分銷服務。

This allows Primo Water to supply a broad array of water solutions efficiently.

這使得 Primo Water 能夠有效地提供廣泛的水解決方案。

I believe we can use our scale to drive a higher level of operating rigor that will allow us to further differentiate us in the highly fragmented marketplace.

我相信我們可以利用我們的規模來推動更高水準的營運嚴謹性，這將使我們能夠在高度分散的市場中進一步脫穎而出。

Starting with our water dispensers, our Water Your Way platform connects customers to our hydration solutions by either renting a dispenser directly from us or buying online or at one of our 10,900 water dispenser retail locations.

從我們的飲水機開始，我們的Water Your Way 平台將客戶與我們的水合解決方案連接起來，客戶可以直接向我們租用飲水機，也可以在線上購買或在我們的10,900 個飲水機零售點之一購買。

Both are means to drive recurring consumption of water, whether it's through our Water Direct, exchange or refill channels.

兩者都是推動水循環消耗的手段，無論是透過我們的水直接、交換或補充管道。

We have over 1.5 million Water Direct customers, 17,500 water exchange locations, 3,500 water refill stations, and over 12,000 locations that sell our Mountain Valley premium spring water.

我們擁有超過 150 萬 Water Direct 客戶、17,500 個水交換地點、3,500 個加水站以及超過 12,000 個銷售 Mountain Valley 優質礦泉水的地點。

Additionally, we service more than 100,000 customers in our growing water filtration business.

此外，我們在不斷發展的水過濾業務中為超過 100,000 名客戶提供服務。

These services in aggregate sold more than 1 billion gallons of water last year.

去年，這些服務總共售出了超過 10 億加侖的水。

With the total addressable market of nearly 29 million North American households, we have an opportunity for additional organic growth in both residential and commercial channels.

憑藉近 2,900 萬北美家庭的總目標市場，我們有機會在住宅和商業通路方面實現額外的有機成長。

We support our ongoing marketing and customer recruitment efforts to direct-to-consumer connections with our websites, mobile apps, and partnerships with major club stores, retailers, and prominent grocery stores.

我們支持我們正在進行的行銷和客戶招募工作，透過我們的網站、行動應用程式以及與主要俱樂部商店、零售商和著名雜貨店的合作夥伴關係，直接與消費者建立聯繫。

We target quality customers through in-store events, customer referrals, and old-fashioned door-knocking.

我們透過店內活動、客戶推薦和傳統的上門拜訪來瞄準優質客戶。

In addition to organic growth, M&A is a key part of our DNA and integral to our long-term strategy.

除了有機成長之外，併購是我們 DNA 的重要組成部分，也是我們長期策略的組成部分。

My initial impression is that our ability to successfully integrate synergistic acquisitions as a core competency.

我的初步印像是，我們成功整合協同收購的能力是一項核心能力。

Our research indicates that customers acquired through M&A have high retention rates because they understand the benefits of our services and have accepted hydration solutions as an important part of their lifestyle.

我們的研究表明，透過併購獲得的客戶擁有很高的保留率，因為他們了解我們服務的優勢，並接受水合解決方案作為其生活方式的重要組成部分。

Third, as a career consumer goods leader, I recognize our portfolio of brands have a long history and legacy.

第三，作為職業消費品的領導者，我認識到我們的品牌組合擁有悠久的歷史和遺產。

In fact, it's one of the reasons for my interest in coming to lead Primo Water.

事實上，這也是我有興趣領導 Primo Water 的原因之一。

Our portfolio of 14 brands include some of America's most long-standing and beloved beverage brands.

我們的 14 個品牌組合包括一些美國歷史最悠久、最受歡迎的飲料品牌。

Dating as far back as 1871 with Mountain Valley, 1888 with Hinkley Springs, and 1925 with Sparkletts.

Mountain Valley 的歷史可以追溯到 1871 年，Hinkley Springs 的歷史可以追溯到 1888 年，Sparkletts 的歷史可以追溯到 1925 年。

These brands are shining examples of water products that benefit the health and wellness of our customers.

這些品牌是有益於我們客戶健康的水產品的光輝典範。

I believe we have the potential to be even more impactful with the right combination of customer marketing, communication, and connectivity.

我相信，透過客戶行銷、溝通和連結的正確結合，我們有潛力發揮更大的影響力。

We own amazing assets like water.com, agua.com, our mobile MyWater+ app, and other brand and domain names with direct-to-consumer and retail access that enables a connection with our consumers.

我們擁有令人驚嘆的資產，如water.com、agua.com、我們的行動MyWater+ 應用程式以及其他品牌和域名，這些品牌和域名可直接面向消費者和零售訪問，從而與我們的消費者建立聯繫。

Fourth, a truly unique aspect of our company is our commitment to sustainability, ESG, and being good stewards of the environment.

第四，我們公司的一個真正獨特的方面是我們對永續發展、ESG 和成為環境的良好管理者的承諾。

I love our company's commitment to accountability.

我喜歡我們公司對責任的承諾。

For example, reducing plastic in the environment.

例如，減少環境中的塑膠。

One of our bottles replaces as many as 1,500 single-use plastic bottles from entering the waste stream.

我們的一個瓶子可取代多達 1,500 個一次性塑膠瓶，避免其進入廢物流。

By reusing and recycling our large-format bottles, we can help close the loop on plastic waste.

透過重複使用和回收我們的大尺寸瓶子，我們可以幫助關閉塑膠廢物的循環。

By sourcing and processing responsibly, we aim to protect the planet we inhabit.

透過負責任地採購和加工，我們的目標是保護我們居住的地球。

To achieve this, we are implementing an environmental strategy that is focused on three priorities: first, reducing climate change impacts through greenhouse gas emissions management; second, sourcing water responsibly; and third, integrating circular economy principles in our business models.

為了實現這一目標，我們正在實施一項環境策略，重點關註三個優先事項：第一，透過溫室氣體排放管理來減少氣候變遷的影響；第二，負責任地獲取水資源；第三，將循環經濟原則融入我們的商業模式。

We thank all our associates for their continued hard work and dedication and our investors for their ongoing support as we continue our sustainability journey.

我們感謝所有員工的持續辛勤工作和奉獻精神，感謝投資者在我們繼續可持續發展之旅時給予的持續支持。

The fifth area of observation relates to the footprint of our manufacturing and supply chain operations, which put us within reach of the majority of population in North America.

第五個觀察領域涉及我們的製造和供應鏈業務的足跡，這使北美大多數人口能夠接觸到我們。

The vast network has grown significantly over the years through a combination of organic and inorganic growth.

多年來，透過有機和無機成長的結合，龐大的網路取得了顯著成長。

While our expansive production and distribution network sets us apart in terms of our ability to meet our customers' needs.

我們廣泛的生產和分銷網絡使我們在滿足客戶需求的能力方面脫穎而出。

I see opportunity to optimize this footprint to improve operating efficiencies, better serve our existing customers, and reach new customers across North America.

我看到了優化這一足跡的機會，以提高營運效率，更好地服務我們的現有客戶，並吸引整個北美的新客戶。

This includes investing in physical production assets, distribution capabilities, and technology suites to support more efficient planning.

這包括投資實體生產資產、分銷能力和技術套件，以支援更有效的規劃。

Let me discuss each of these in a bit more detail.

讓我更詳細地討論其中的每一個。

First, we continue to upgrade and automate our production facilities, further ensuring the safety and well-being of our associates and delivering enhanced growth and efficiency over the long term through manufacturing best practices.

首先，我們繼續升級和自動化我們的生產設施，進一步確保員工的安全和福祉，並透過製造最佳實踐實現長期成長和效率的提高。

I recently had the opportunity to see this technology in action at our largest bottling facility located in Los Angeles.

最近，我有機會在我們位於洛杉磯的最大裝瓶工廠看到這項技術的實際應用。

This new bottling line is remarkable.

這條新的裝瓶生產線非常引人注目。

It nearly doubles the production, reduces waste, and improves the safety for our associates through robotics.

它使產量幾乎翻了一番，減少了浪費，並透過機器人技術提高了員工的安全性。

We will have six of these lines installed at various locations by the end of this year.

到今年年底，我們將在不同地點安裝六條這樣的生產線。

Second, fleet enhancements and upgrades are an important part of what we do.

其次，機隊增強和升級是我們工作的重要組成部分。

We are in a continual state of recycling out the oldest portion of our delivery fleet and replacing them with new environmentally friendly or propane-powered vehicles and benefiting from improved efficiency and lower repair and maintenance costs from this transition and increasing our own primary fleets.

我們不斷地回收我們的運輸車隊中最舊的部分，並用新的環保或丙烷動力車輛替換它們，並從這種過渡中提高效率、降低維修和維護成本中受益，並增加我們自己的主要車隊。

Third, to embed digitization efforts throughout the organization, we are leveraging artificial intelligence and data analytics in areas like forecasting as part of our planning processes for production and sales and operational planning, also known as S&OP, utilizing tools like salesforce.com and Tagetik, we can take real-time information and do things like employing precision marketing to generate customer contacts as part of improving the overall customer experience.

第三，為了在整個組織中嵌入數位化工作，我們在預測等領域利用人工智慧和數據分析，作為我們生產和銷售以及營運規劃（也稱為S&OP）規劃流程的一部分，利用salesforce.com 和Tagetik 等工具，我們可以獲取即時資訊並採取精準行銷等措施來建立客戶聯繫，作為改善整體客戶體驗的一部分。

These tools are part of a broader effort that will allow us to reduce cost, increase working capital efficiency, and improve our return on invested capital.

這些工具是更廣泛努力的一部分，使我們能夠降低成本、提高營運資金效率並提高投資資本回報率。

I hope you can understand why I'm excited about the growth potential in front of us.

我希望您能理解為什麼我對我們面前的成長潛力感到興奮。

We have a unique combination of associates, assets, and resources that are capable of delivering results that benefit all our stakeholders.

我們擁有獨特的員工、資產和資源組合，能夠交付讓所有利害關係人受益的成果。

I will now turn the call over to David to review our financial results in greater detail and provide our 2024 outlook.

我現在將把電話轉給 David，以更詳細地審查我們的財務表現並提供 2024 年的展望。

And once again, I would like to thank all our Primo Water associates for their support and contribution to the excellent performance of the business.

我要再次感謝所有 Primo Water 員工的支持和對公司卓越表現的貢獻。

Thanks, Robert.

謝謝，羅伯特。

On behalf of all Primo Water Associates, I would like to welcome you to the team.

我謹代表所有 Primo Water Associates 歡迎您加入我們的團隊。

As you likely saw last quarter, we announced the sale of a significant portion of our international businesses.

正如您可能在上個季度看到的那樣，我們宣佈出售很大一部分國際業務。

I am pleased to report that the sale of these assets closed as expected on December 29 of last year.

我很高興地報告，這些資產的出售已於去年 12 月 29 日按預期完成。

Highlights of the completed European transaction include $575 million gross proceeds in an all-cash purchase price, which represents an attractive premium valuation multiple of approximately 11x trailing 12-month Q2 adjusted EBITDA for the business.

已完成的歐洲交易的亮點包括以全現金收購價格計算的5.75 億美元總收益，這代表著該業務過去12 個月第二季度調整後EBITDA 的約11 倍的極具吸引力的溢價估值倍數。

Upon closing the transaction, earlier this quarter, we repaid the outstanding balance of our cash flow revolver of $132 million, resulting in a net leverage ratio of approximately 2.1x adjusted EBITDA.

本季稍早完成交易後，我們償還了現金流循環餘額 1.32 億美元，淨槓桿約為調整後 EBITDA 的 2.1 倍。

Longer term, we expect our net leverage ratio to remain under 2.5x. After the repayment of the cash flow revolver, we have $508 million on our balance sheet and $283 million of availability under our revolver with the balance of the $350 million revolver, supporting standby letters of credit.

長期來看，我們預期淨槓桿率將維持在 2.5 倍以下。償還循環現金流後，我們的資產負債表上有 5.08 億美元，循環資金下有 2.83 億美元的可用資金，其中 3.5 億美元的循環資金餘額用於支持備用信用證。

Additionally, the Board authorized an incremental $25 million on top of the previous $50 million share repurchase program for an aggregate authorization of $75 million.

此外，董事會在先前 5,000 萬美元的股票回購計畫基礎上，還授權增加 2,500 萬美元，授權總額為 7,500 萬美元。

This deal is the first of several transactions that will occur in 2024 as we execute our plan to sell the remainder of the international businesses, which includes EMEA Foods in the United Kingdom, our water business in Israel, and our water and coffee businesses in the United Kingdom and Portugal.

這筆交易是 2024 年將發生的幾筆交易中的第一筆，因為我們執行了出售其餘國際業務的計劃，其中包括英國的 EMEA Foods、以色列的水業務以及以色列的水和咖啡業務。英國和葡萄牙。

At the completion of the transaction to sell our European businesses, we have begun the pivot from a global enterprise of more than 2.2 million water-direct customers to a North American-focused business that includes a water-direct customer base of over $1.5 million.

在出售歐洲業務的交易完成後，我們開始從擁有超過 220 萬水直接客戶的全球企業轉向專注於北美的業務，其中包括超過 150 萬美元的水直接客戶群。

As a reminder, on a go-forward basis, these businesses will remain in discontinued operations, and for 2024, will be actively reported as such until they are sold.

需要提醒的是，在未來的基礎上，這些業務將繼續處於停產狀態，並且在 2024 年，將積極報告此類業務，直到它們被出售。

I will now transition from the sale of our European business and into our Q4 and full-year 2023 results.

我現在將從出售歐洲業務轉向我們的第四季和 2023 年全年業績。

To provide clarity to our investor base, in addition to the exhibits in the press release, which specifically address the new or go-forward Primo Water results, we are providing a breakdown of the combined performance for both continuing and discontinued operations in aggregate.

為了向我們的投資者群體提供清晰的信息，除了新聞稿中專門介紹新的或未來的 Primo Water 業績的資料外，我們還提供了持續經營和已終止經營業務的綜合業績細目。

Beginning on slide 6, I would like to provide a quick highlight of three key financial achievements before going into greater detail on our financial performance and our 2024 guidance.

從第 6 張投影片開始，我想快速地專注於三個關鍵財務成就，然後再更詳細地介紹我們的財務表現和 2024 年指導。

In 2023, on a combined basis, we delivered revenue of $2.35 billion, adjusted EBITDA of $477 million, and adjusted free cash flow of $184 million, with all three results exceeding our most recent guidance.

2023 年，我們的合併收入為 23.5 億美元，調整後 EBITDA 為 4.77 億美元，調整後自由現金流為 1.84 億美元，所有三項結果都超過了我們最新的指導。

For each financial item, the presentation helps break out the results between continuing and discontinued operations.

對於每個財務項目，簡報有助於區分持續經營和終止經營之間的結果。

First, we are very pleased with the overall combined financial performance, including record results with our adjusted EBITDA margin and significant improvement year-over-year in our adjusted free cash flow generation.

首先，我們對整體綜合財務業績感到非常滿意，包括調整後 EBITDA 利潤率創紀錄的業績，以及調整後自由現金流產生量同比顯著改善。

Second, within our continuing operations, we have a much stronger financial profile for future success and remain excited about our focus going forward solely within North America.

其次，在我們的持續營運中，我們擁有更強大的財務狀況以實現未來的成功，並對我們僅在北美地區發展的重點感到興奮。

And last, to provide clarity on the financial profile of the remaining businesses held for sale within discontinued operations, their aggregate full-year 2023 revenue was approximately $333 million with adjusted EBITDA of approximately $34 million.

最後，為了清楚說明已終止經營業務中待售的其餘業務的財務狀況，其 2023 年全年總收入約為 3.33 億美元，調整後 EBITDA 約為 3,400 萬美元。

With that, let me transition into the financial performance for both the fourth quarter and full-year 2023 in a bit more detail.

接下來，讓我更詳細地介紹一下 2023 年第四季和全年的財務表現。

The fourth quarter results of our combined continuing and discontinued operations included revenue increasing 10% to $585 million, adjusted EBITDA increasing 11% to $119 million, with adjusted EBITDA margins of 20.4%.

我們的持續經營和終止經營業務合併後的第四季業績包括營收成長 10%，達到 5.85 億美元，調整後 EBITDA 成長 11%，達到 1.19 億美元，調整後 EBITDA 利潤率為 20.4%。

The fourth-quarter results of our continuing operations, which align with our go-forward businesses, included normalized revenue increasing 8% to $439 million, adjusted EBITDA increasing 7% to $95 million, and adjusted EBITDA margin of 21.6%.

我們持續經營業務的第四季業績與我們的未來業務保持一致，包括正常收入成長 8%，達到 4.39 億美元，調整後 EBITDA 成長 7%，達到 9,500 萬美元，調整後 EBITDA 利潤率為 21.6%。

For the full-year 2023, the results of our combined continuing and discontinued operations included revenue increasing 6% to $2.35 billion, adjusted EBITDA increasing 13% to $477 million, and adjusted EBITDA margins of 20.3%.

2023 年全年，我們的持續經營業務和終止經營業務合併後的業績包括營收成長 6%，達到 23.5 億美元，調整後 EBITDA 成長 13%，達到 4.77 億美元，調整後 EBITDA 利潤率為 20.3%。

Excluding the impact of foreign exchange, normalized revenue increased 8% for the year.

剔除外匯影響，全年正常化收入成長8%。

Normalized revenue excludes the exit from the single-use retail bottled water business in North America and the exit of our business in Russia.

標準化收入不包括北美一次性零售瓶裝水業務的退出和俄羅斯業務的退出。

Combined adjusted free cash flow was $184 million.

調整後的合併自由現金流為 1.84 億美元。

For the full-year 2023, the results of our continuing operations included revenue increasing 5% to $1.8 billion, adjusted EBITDA increasing 11% to $381 million with adjusted EBITDA margins of 21.5%.

2023 年全年，我們的持續經營績效包括營收成長 5%，達到 18 億美元，調整後 EBITDA 成長 11%，達到 3.81 億美元，調整後 EBITDA 利潤率為 21.5%。

Excluding the impact of foreign exchange, normalized revenue increased 8% for the year, driven by a 7% increase in price and a 1% increase in volume.

排除外匯的影響，在價格上漲 7% 和數量增加 1% 的推動下，全年正常化收入增加了 8%。

Within continued operations, we had strong revenue growth of 8% in the Water Direct and Exchange and an 18% increase in our water refill and filtration channel.

在持續營運中，我們的水直接和交換通路收入強勁成長 8%，水補充和過濾通路收入成長 18%。

This offset the expected revenue decline in our Water Dispenser business related primarily to lower wholesale prices due to the elimination of tariffs with dispenser unit sales relatively steady on a year-over-year basis.

這抵消了我們飲水機業務的預期收入下降，這主要與取消關稅導致批發價格下降有關，飲水機銷售量較去年同期相對穩定。

During 2023, our water dispenser sell-through was approximately 1 million units with 264,000 units selling through in Q4.

2023 年，我們的飲水機銷量約為 100 萬台，其中第四季銷量為 264,000 台。

Our razor blade business model includes two approaches of selling the razor, the rental of water dispensers to residential and commercial customers in our Water Direct business and the sale of water dispensers through retail partners and online.

我們的刮鬍刀刀片業務模式包括兩種銷售刮鬍刀的方式：在我們的 Water Direct 業務中向住宅和商業客戶租賃飲水機，以及透過零售合作夥伴和線上銷售飲水機。

Both approaches enable growth in Water Solutions and contribute to our predictable and recurring revenue growth.

這兩種方法都能促進水解決方案的成長，並有助於我們可預測的經常性收入成長。

We have been particularly focused on growth within our brick-and-mortar retail partners, where we have greater visibility into the connectivity to our water solutions and where the connectivity is higher than through e-commerce.

我們特別關注實體零售合作夥伴的成長，在這些合作夥伴中，我們可以更好地了解與水解決方案的連接性，並且連接性比透過電子商務更高。

As discussed in previous calls, our water dispenser category was previously under a 25% import tariff but was reclassified last year and a refund process from the U.S. government was initiated.

正如先前電話會議中所討論的，我們的飲水機類別此前曾享受 25% 的進口關稅，但去年進行了重新分類，並啟動了美國政府的退款程序。

We have recorded the refunds in the same manner as the original transactions.

我們已按照與原始交易相同的方式記錄退款。

Through the end of 2023, we have received approximately $8.2 million of tariff refunds.

截至 2023 年底，我們已收到約 820 萬美元的關稅退款。

Of the $8.2 million, approximately $4.5 million is reflected in year-end adjusted EBITDA related to the water dispensers sold to retail, $3.1 million is related to the water dispensers that we rent as CapEx with the residual value, and approximately $587,000 related to interest income for the tariff balance paid to Primo Water.

在 820 萬美元中，約 450 萬美元反映在與零售飲水機相關的年終調整 EBITDA 中，310 萬美元與我們作為資本支出與殘值出租的飲水機相關，約 587,000 美元與利息收入相關支付給Primo Water 的水費餘額。

Through year-end, approximately $8.2 million is reflected in our adjusted free cash flow that we will discuss in a moment.

到年底，大約 820 萬美元反映在我們稍後將討論的調整後自由現金流中。

As we look further into the operational metrics, our commitment to improving the customer experience continues to result in improved on-time in full or OTIF rates.

隨著我們進一步研究營運指標，我們對改善客戶體驗的承諾將繼續提高完全準時率或 OTIF 率。

The ability to serve our customers in the most efficient manner possible, is a critical driver of both our short and long-term profitability and our automated route optimization ARO tool continues to yield efficiencies.

以最有效的方式為客戶提供服務的能力是我們短期和長期獲利能力的關鍵驅動力，我們的自動路線優化 ARO 工具不斷提高效率。

In North America, units per route per day increased approximately 5% compared to Q4 of 2022 and revenue per route increased more than 8% compared to Q4 of 2022.

在北美，與 2022 年第四季相比，每條航線每天的運輸量增加了約 5%，每條航線的收入與 2022 年第四季相比增加了 8% 以上。

Our scale and leverage are becoming more evident as we service more customers with higher volume per route.

隨著我們以更高的每條航線運輸量為更多客戶提供服務，我們的規模和影響力變得更加明顯。

Additionally, North America Water Direct customer retention increased to approximately 85%, slightly higher than last quarter in the fourth quarter of 2022.

此外，2022 年第四季度，北美 Water Direct 客戶保留率增至約 85%，略高於上一季。

The -- as part of our ongoing efforts to optimize our operating network, at the end of the fourth quarter, we sold our Irvine, California property, which did not have any active distribution or business activity.

- 作為我們不斷優化營運網絡的努力的一部分，在第四季度末，我們出售了位於加利福尼亞州歐文的資產，該資產沒有任何活躍的分銷或業務活動。

This sale generated $21 million in net cash proceeds in 2023.

此次出售在 2023 年產生了 2,100 萬美元的淨現金收益。

The proceeds further bolster our cash on balance sheet and is available for capital deployment.

所得款項進一步增強了我們資產負債表上的現金，可用於資本部署。

Taxes on the sale of this property will be due in 2024 and are reflected in our 2024 cash tax estimates.

該房產的銷售稅將於 2024 年到期，並反映在我們的 2024 年現金稅估算中。

Shifting to adjusted free cash flow.

轉向調整後的自由現金流。

Our combined continuing and discontinued operations for 2023 full year totaled $184 million, outpacing our previous guidance of $160 million, driven by increased earnings, improved working capital, incremental tariff receipts and lower capital expenditures.

受收入增加、營運資本改善、關稅收入增加和資本支出減少的推動，我們 2023 年全年的持續經營和終止經營業務總計達 1.84 億美元，超過了之前 1.6 億美元的指導。

Within the combined adjusted free cash flow of $184 million, continuing operations contributed approximately $158 million and discontinued operations was $26 million.

在 1.84 億美元的合併調整後自由現金流中，持續經營業務貢獻了約 1.58 億美元，終止經營業務貢獻了 2,600 萬美元。

We will discuss our 2024 adjusted free cash flow outlook in a moment.

我們稍後將討論 2024 年調整後的自由現金流前景。

As I transition into our 2024 outlook, as a reminder, any forward guidance will be strictly for continuing operations or what we refer to as the new Primo Water.

在我轉向 2024 年展望時，提醒一下，任何前瞻性指引都將嚴格針對持續營運或我們所謂的新 Primo Water。

Discontinued operations will not be covered to help bridge our 2024 guidance, a table of 2023's financial results by quarter has been provided in the appendix of our supplemental earnings slides.

為了幫助銜接我們的 2024 年指導，將不涵蓋已終止的業務，我們的補充收益幻燈片的附錄中提供了按季度列出的 2023 年財務業績表。

We are forecasting first-quarter revenue guidance for continuing operations to be between $435 million and $445 million.

我們預計第一季持續營運收入指引將在 4.35 億美元至 4.45 億美元之間。

We expect Q1 adjusted EBITDA for continuing operations to be between $85 million and $91 million with an implied adjusted EBITDA margin of 20%.

我們預計第一季持續經營業務的調整後 EBITDA 將在 8,500 萬美元至 9,100 萬美元之間，隱含調整後 EBITDA 利潤率為 20%。

The 20% adjusted EBITDA margin represents a 170 basis point improvement from the year-ago period.

調整後 EBITDA 利潤率為 20%，較去年同期提高 170 個基點。

For the full-year 2024 forecast of continuing operations, revenue is projected to be between $1.84 billion and $1.88 billion, with revenue growth in the range of 4% to 6%.

對於2024年全年持續營運的預測，營收預計在18.4億美元至18.8億美元之間，營收成長在4%至6%範圍內。

We expect full-year 2024 adjusted EBITDA to be between $402 million and $422 million with an implied adjusted EBITDA margin of 22.2% at the midpoint.

我們預計 2024 年全年調整後 EBITDA 將在 4.02 億美元至 4.22 億美元之間，隱含調整後 EBITDA 利潤率中點為 22.2%。

Neither guidance figure includes water-direct tuck-in acquisitions that may occur across the year.

這兩個指導數字均不包括全年可能發生的直接供水收購。

We are forecasting 2024 CapEx guidance of approximately 7% of our revenue guidance range, plus an incremental $22.5 million of strategic CapEx.

我們預期 2024 年的資本支出指引約為收入指引範圍的 7%，另外還有 2,250 萬美元的策略資本支出增量。

As a reminder, 2024 is the last year of our previously announced strategic growth investment program and the $22.5 million represents the North American amount within our previously communicated $30 million for 2024.

提醒一下，2024 年是我們先前宣布的策略性成長投資計畫的最後一年，2,250 萬美元代表了我們先前公佈的 2024 年 3,000 萬美元的北美金額。

We expect to return our total CapEx spend of approximately 7% of revenue in 2025.

我們預計到 2025 年，我們的總資本支出將佔收入的 7% 左右。

Key initiatives to be funded from our 2024 CapEx plan include installing high-efficiency water production lines, reducing waste and increasing productivity, building a more environmentally friendly fleet, and expanding our private fleet to improve the efficiency of our product distribution, driving organic growth through digitization, accelerating dispenser innovation and driving growth in refill and filtration with refreshed signage and branding of our existing units.

我們的 2024 年資本支出計畫資助的關鍵舉措包括安裝高效水生產線、減少浪費並提高生產力、建造更環保的船隊以及擴大我們的私人船隊以提高產品分銷的效率，透過以下方式推動有機成長：數位化，加速飲水機創新，並透過更新現有設備的標牌和品牌來推動補充和過濾的成長。

Full-year 2024 cash taxes are expected to be approximately $30 million to $40 million.

2024 年全年現金稅預計約 3,000 萬至 4,000 萬美元。

This anticipates utilization of U.S. net operating losses or net NOLs, of which we have approximately 46 million U.S. NOLs available for 2024.

這預計將利用美國淨營運虧損或淨 NOL，我們在 2024 年擁有約 4,600 萬個美國 NOL。

We expect the amount of NOLs available to be approximately $16 million in '25 and $10 million per year in 2026 through 2029.

我們預計 2025 年可用的 NOL 金額約為 1,600 萬美元，2026 年至 2029 年每年約為 1,000 萬美元。

For the full-year 2024, we expect cash interest of approximately $30 million to $50 million -- our interest expense is tied to our two senior note debt facilities with very low-interest rates of approximately 4.2% with maturity dates of 2028 and 2029.

對於2024 年全年，我們預計現金利息約為3,000 萬至5,000 萬美元——我們的利息支出與我們的兩項優先票據債務融資掛鉤，利率非常低，約4.2%，到期日為2028 年和2029 年。

The year-over-year reduction in our interest expense is primarily from two items: first, no contemplated usage of our cash flow revolver in 2024, which on a year-over-year basis is a reduction of approximately $13 million in interest expense, which will be offset by unused withdrawal fees and second, our ability to earn interest income on the proceeds we received from our European sales.

我們的利息支出年減主要來自兩個方面：首先，2024 年沒有計劃使用我們的現金流循環工具，利息支出同比減少約 1300 萬美元，這將被未使用的提款費用所抵消，其次，我們透過歐洲銷售收入賺取利息收入的能力。

We do not currently anticipate drawing on our cash flow revolver.

我們目前預計不會動用我們的現金流左輪手槍。

Additionally, we will take steps to maximize the interest income yield throughout 2024 but could experience reduced income opportunities if market available rates decline related to any macro Fed or bank rate environment decisions.

此外，我們將採取措施在 2024 年全年實現利息收入收益最大化，但如果市場可用利率因任何宏觀聯準會或銀行利率環境決策而下降，收入機會可能會減少。

We currently expect M&A tuck-ins to be toward the higher end of historical ranges during 2024.

我們目前預計 2024 年併購金額將達到歷史範圍的高端。

Our cash flow and balance sheet enable us to simultaneously return value to shareholders through regular quarterly dividends and opportunistic share repurchases while continuing to invest in internal and external opportunities that will further strengthen our operations and drive long-term growth.

我們的現金流量和資產負債表使我們能夠同時透過定期季度股利和機會性股票回購向股東回報價值，同時繼續投資於內部和外部機會，以進一步加強我們的營運並推動長期成長。

Combining all of these factors, along with the core health and cash generation capacity of our business model, we are forecasting adjusted free cash flow of between $170 million and $180 million in 2024.

綜合所有這些因素，再加上我們業務模式的核心健康狀況和現金產生能力，我們預測 2024 年調整後的自由現金流將在 1.7 億至 1.8 億美元之間。

This figure represents adjusted free cash flow solely from our continuing operations.

此數字僅代表我們持續經營業務的調整後自由現金流。

This outlook also targets our commitment to replace the adjusted free cash flow that was tied to the assets sold and those held for sale in our discontinued operations.

這項展望也針對我們的承諾，取代與已出售資產和已終止經營業務中持有待售資產相關的調整後自由現金流。

The following three items have not been included in our 2024 guidance due to the uncertainty and timing with each discrete outcome.

由於每項離散結果的不確定性和時間安排，以下三項尚未納入我們的 2024 年指南中。

First, benefits from the previously announced business optimization program, targeting $20 million improvement on a run rate basis by the ending of 2024; second, benefits from additional tariff refunds due to the uncertain timing of the government refund process; third, the sale of discontinued operations, which will be reflected independently from our continuing operations.

首先，受益於先前宣布的業務優化計劃，目標是到 2024 年底，運行率提高 2,000 萬美元；其次，由於政府退稅流程的時間不確定，可以享有額外的關稅退稅；第三，出售已終止業務，這將獨立於我們的持續業務而反映。

With respect to our share repurchase program, we repurchased $21 million of common stock across 2023.

關於我們的股票回購計劃，我們在 2023 年回購了 2,100 萬美元的普通股。

Share repurchases from our increased authorization will continue across 2024.

我們增加授權後的股票回購將在 2024 年繼續進行。

And Additionally, yesterday, our Board of Directors authorized a quarterly dividend of $0.09 per common share, a 13% increase over last year, which continues our path to the multiyear dividend step-up with an increase in our quarterly dividend per share of $0.01 for the third consecutive year.

此外，昨天，我們的董事會批准了每股普通股季度股息 0.09 美元，比去年增加了 13%，這繼續了我們的多年股息增加之路，將每股普通股季度股息增加了 0.01 美元。連續第三年。

In closing, we are very pleased with the financial performance and the future prospects of the continuing operations of Primo Water.

最後，我們對 Primo Water 的財務表現和持續營運的未來前景感到非常滿意。

And with that, I will now turn the call back to Robert.

現在，我將把電話轉回給羅伯特。

Thanks, David.

謝謝，大衛。

With that, let me now preview our must-win priorities.

現在讓我預覽一下我們必須贏得的優先事項。

Over the next several quarters, we will provide an overview of the specific initiatives that support each of these focus areas and the progress we're making to deliver on our goals.

在接下來的幾個季度中，我們將概述支持每個重點領域的具體舉措以及我們在實現目標方面所取得的進展。

The first must-win is to provide a superior customer experience with the goal to yield net organic customer base growth and units consumed across our water solutions.

第一個必須贏得的目標是提供卓越的客戶體驗，目標是實現淨有機客戶群成長和我們的水解決方案消耗的單位。

We will focus on increasing the number of high-value customers and driving annual unit growth of our gallons and delivered hydration solutions.

我們將專注於增加高價值客戶的數量，並推動加侖和提供的水合解決方案的年度單位成長。

I realize that in order for us to reach our full potential, we must have a consistent path toward increasing our net organic base.

我意識到，為了充分發揮我們的潛力，我們必須採取一致的道路來增加我們的淨有機基礎。

Activities to deliver this include delivering a frictionless end-to-end customer experience, where it is easy to do business with us.

實現這一目標的活動包括提供無摩擦的端到端客戶體驗，讓您可以輕鬆地與我們開展業務。

We will be enhancing many aspects of consumer touch points in order to improve the customer experience, including upgrading our water.com website to a one-stop shop where you can learn, shop, and buy within our water solutions.

我們將加強消費者接觸點的許多方面，以改善客戶體驗，包括將我們的 water.com 網站升級為一站式商店，您可以在我們的水解決方案中學習、購物和購買。

We will be providing consistent enhancements to our MyWater+ app, the mobile version of water.com, and digitizing and empowering our customer experience center with embedded voice, chat and social capabilities with a 24/7 customer-centric approach.

我們將持續增強 MyWater+ 應用程式（water.com 的行動版本），並透過 24/7 以客戶為中心的方法，透過嵌入式語音、聊天和社交功能對我們的客戶體驗中心進行數位化和授權。

The second must-win is to be the preferred water solutions partner.

第二個必須贏得的目標是成為首選的水解決方案合作夥伴。

We meet the end consumer across numerous channels like direct-to-consumer delivery or to one of our retail partners with our exchange locations or refill stations.

我們透過多種管道與最終消費者見面，例如直接向消費者交付或透過我們的交換地點或加油站向我們的零售合作夥伴之一交付。

We have an offering to meet each of our customers' needs and budgets or what we call Water Your Way.

我們提供滿足每位客戶的需求和預算的產品，或我們所謂的「Water Your Way」。

Simply put, we want Primo Water to be their preferred water solutions partner.

簡而言之，我們希望 Primo Water 成為他們首選的水解決方案合作夥伴。

We embrace our partnerships with top-tier retailers like Walmart, Costco, Home Depot, Lowe's, and other prominent grocery chains throughout North America.

我們與沃爾瑪、好市多、家得寶、勞氏等頂級零售商以及整個北美的其他著名雜貨連鎖店建立了合作夥伴關係。

These relationships present an opportunity to joint business planning to increase both our presence as well as increased household penetration and resulting volume all creating meaningful connectivity across our portfolio.

這些關係為聯合業務規劃提供了機會，以增加我們的影響力以及增加家庭滲透率和由此產生的數量，所有這些都在我們的投資組合中創造了有意義的連結。

The concept of partnering stretches across all aspects of our business, including associates, suppliers and customers.

合作的概念貫穿我們業務的各個方面，包括員工、供應商和客戶。

Sustaining and enriching these partnerships means we can win for the long haul.

維持和豐富這些夥伴關係意味著我們能夠取得長期勝利。

I've seen this successfully done in other companies, and I see the same opportunity here.

我在其他公司看到過這種成功的做法，我在這裡也看到了同樣的機會。

The third must win is operational excellence, specifically ensuring that we have the ideal organizational structure and operating system to guarantee our associates' safety and well-being, delivering the highest quality product and service and scale efficiently as we continue to grow organically and through acquisitions.

第三個必須贏得的是卓越運營，特別是確保我們擁有理想的組織結構和操作系統，以保證我們員工的安全和福祉，提供最高質量的產品和服務，並在我們繼續有機增長和通過收購的過程中有效擴大規模。

The Primo Water team is focused on delivering the previously announced business optimization program that will enhance not only our productivity but also lower our overall cost to serve, while continuing to offer customers an exceptional experience.

Primo Water 團隊專注於交付先前宣布的業務優化計劃，該計劃不僅可以提高我們的生產力，還可以降低我們的整體服務成本，同時繼續為客戶提供卓越的體驗。

We have a clear plan, and we remain committed to delivering the annual run rate savings of $20 million by year-end 2024.

我們有明確的計劃，並且仍然致力於在 2024 年底實現每年運行費用節省 2000 萬美元。

In closing, our improved financial profile and flexibility along with a compelling long-term growth outlook are a strong foundation for continued success.

最後，我們改善的財務狀況和靈活性以及令人信服的長期成長前景是持續成功的堅實基礎。

We are deeply focused on our must wins and embracing the renewed energy in the organization.

我們高度關注我們必須取得的勝利，並擁抱組織中的新活力。

With that, I'll turn the call back over to Jon for Q&A.

這樣，我會將電話轉回喬恩進行問答。

Thanks, Robert.

謝謝，羅伯特。

During the Q&A, to ensure we can hear from as many of you as possible, we would ask for a limit of one question and one follow-up per person.

在問答過程中，為了確保我們能夠聽到盡可能多的人的意見，我們要求每人僅限提出一個問題和一次跟進。

Thank you. operator, please open the line for questions.

謝謝。接線員，請打開線路提問。

(Operator Instructions)

（操作員說明）

Nik Modi, RBC Capital Markets.

尼克莫迪，加拿大皇家銀行資本市場。

Thank you.

謝謝。

Good morning, everyone.

大家，早安。

And Robert, welcome.

羅伯特，歡迎。

It'd be great to work with you going forward.

很高興能與您一起前進。

So I wanted to just get a sense from you with a fresh pair of eyes, having all the experience you've had at prior organizations at PepsiCo, at Quaker, any best practices you believe to be leveraged from your experiences at those organizations into Primo?

因此，我想以全新的眼光從您那裡了解您在百事可樂、桂格等先前組織中獲得的所有經驗，以及您認為可以從您在這些組織中的經驗中融入 Primo 的任何最佳實踐？

So that's the first question.

這是第一個問題。

And then just the second question or a follow-up, if you will, is given the momentum in the business, the guidance does look a bit conservative.

然後，考慮到業務的動力，第二個問題或後續問題（如果你願意的話），指導看起來確實有點保守。

So I just wanted to get any context from you or David on that.

所以我只是想從你或大衛那裡得到關於這方面的任何背景資訊。

Thank you.

謝謝。

Yes.

是的。

So thank you, Nik, for that question.

謝謝尼克提出這個問題。

To the first question, in terms of best practices, I think what I would say is that we need to think about ourselves as a growth company.

對於第一個問題，就最佳實踐而言，我認為我們需要將自己視為成長型公司。

And we have great growth opportunities across our Water Direct exchange refill and retail business.

我們的水直接交換補充和零售業務擁有巨大的成長機會。

And that growth should be underpinned by three key priorities, and they are based on best practices that I've seen before.

這種成長應該以三個關鍵優先事項為基礎，它們基於我以前見過的最佳實踐。

The first one is really to put the consumer at the heart of all we do.

第一個是真正將消費者置於我們所做的一切的核心。

That means superior customer experience.

這意味著卓越的客戶體驗。

And what that really means for us is a frictionless experience, every contact that anyone has with one of our associates or our water.com website or app, which are a big part of our business because people place orders, adjust their schedules, may ask for more or less water or some bottled water in addition to the jugs, that needs to be an exceptional experience.

這對我們來說真正意味著一種無摩擦的體驗，任何人與我們的同事或Water.com 網站或應用程式的每一次聯繫都是我們業務的重要組成部分，因為人們下訂單、調整時間表、可能會問對於更多或更少的水或除了水壺之外的一些瓶裝水，這需要是一種特殊的體驗。

So really think of every product experience, every associate experience is an exceptional experience.

因此，認真思考每一次產品體驗、每一次員工體驗都是非凡的體驗。

So that would be a best practice.

所以這將是一個最佳實踐。

The second one I would say is really thinking of ourselves as a partner of choice.

我想說的第二點是真正將自己視為首選合作夥伴。

When you really put the associates, the communities where we live and where we serve the customer and the consumer, the investment community, the owners of our stock, our retail partners at the center of all we do, we really have a winning model.

當你真正把員工、我們居住的社區、我們為客戶和消費者提供服務的地方、投資界、我們股票的所有者、我們的零售合作夥伴置於我們所做的一切的中心時，我們確實擁有了一個成功的模式。

And specifically for our retail partners, they're incredibly important.

特別是對於我們的零售合作夥伴來說，它們非常重要。

I've met several of them in the last couple of weeks in person or on the phone, had many conversations.

在過去的幾周里，我親自或透過電話見過他們中的幾位，進行了很多交談。

And with the rapid growth that we are currently experiencing in the exchange business these retail partnerships are critical.

隨著我們目前交易所業務的快速成長，這些零售合作夥伴關係至關重要。

And that's definitely best practice from my previous roles.

這絕對是我之前角色的最佳實踐。

And the third, I would say, is this notion of operational excellence.

我想說的第三點是卓越營運的概念。

Forecast accuracy being very clear on the demand signals, getting really clear on production planning, procurement.

需求訊號的預測準確度非常明確，生產計畫、採購也非常清楚。

We source a lot of our dispensers out of Asia and making sure we have the right mix and the right forecast there is critical.

我們從亞洲採購了許多分配器，確保我們擁有正確的組合和正確的預測至關重要。

Transportation and what David referred to earlier as the automated route optimization, quality of our products on time and full delivery, getting that right, Nick day in, day out will be a critical driver of growth.

運輸以及大衛之前提到的自動化路線優化、我們產品的準時品質和全面交付，尼克日復一日地做到這一點將成為成長的關鍵驅動力。

To the second part of your question, I understand the question.

對於你問題的第二部分，我理解你的問題。

We had a really strong fourth quarter, 8% growth, 2% unit growth and 6% was pricing.

我們第四季的業績非常強勁，成長了 8%，銷量成長了 2%，定價成長了 6%。

If you look at the unit growth, and you contrast that with some of the other leading beverage companies out there who primarily are seeing reductions in units, we're definitely in a strong position going into this year.

如果你看看單位的成長，並將其與其他一些主要看到單位減少的領先飲料公司進行對比，我們今年肯定處於有利地位。

But we're taking a patient approach for 2024, forecasting 4% to 6% revenue growth with the midpoint of 5%, and the revenue projection of $1.84 billion to $1.88 billion, and pricing is the majority of that.

但我們對 2024 年採取了耐心的態度，預計收入增長 4% 至 6%，中間值為 5%，收入預測為 18.4 億美元至 18.8 億美元，其中定價是其中的大部分。

It's 3.5% of that at 5% midpoint this pricing and one-half is volume.

其中 3.5% 是這個定價的 5% 中點，一半是銷售量。

Great.

偉大的。

Thank you.

謝謝。

Dan Moore, CJS.

丹摩爾，CJS。

Hi.

你好。

This is Justin on for Dan.

這是賈斯汀替丹代言。

Robert, I appreciate your background given in the beginning.

羅伯特，我很欣賞你一開始給的背景。

Perhaps you can tell us a little more about what attracted you to the opportunity at Primo and talk a little bit about what strengths and capabilities that you can bring that can enhance the outlook, whether it be top line growth, operations, margin, capital allocation, something like that?

也許您可以告訴我們更多關於 Primo 機會的吸引因素，並談談您可以帶來哪些優勢和能力來改善前景，無論是營收成長、營運、利潤率還是資本配置，類似的東西？

Sure.

當然。

Thank you, Justin.

謝謝你，賈斯汀。

Thanks for the question.

謝謝你的提問。

I've been very privileged.

我非常榮幸。

I've had a long career 25 years working for some of the best consumer goods companies in the world.

我在世界上一些最好的消費品公司工作了 25 年，有著漫長的職業生涯。

And what I -- when I looked at the Primo Water opportunity, one of the things that inspired me is the fact that the product is squarely placed in health and wellness sector.

當我看到 Primo Water 機會時，啟發我的事情之一是該產品完全定位於健康和保健領域。

Everybody drinks water.

每個人都喝水。

In fact, if you look at younger consumers, they drink more water and less other beverages than any generation before them.

事實上，如果你看看年輕的消費者，他們會比之前的任何一代喝更多的水和更少的其他飲料。

In addition to that, this is a company that may be one of the most sustainable companies in the industry with a strong track record around sustainability and ESG.

除此之外，這家公司可能是業內最具永續發展能力的公司之一，在永續發展和 ESG 方面擁有良好的記錄。

For every jug that we sell, we save 1,500 single-use plastic bottles from going into the ocean, going into landfill or in river systems.

我們每賣出一個水壺，就可以避免 1,500 個一次性塑膠瓶進入海洋、垃圾掩埋場或河流系統。

As we look at the future, that inspires me to be part of a company that was built by a group of incredible leaders with a view to sustainability.

當我們展望未來時，這激勵我成為這家公司的一員，該公司是由一群著眼於永續發展的傑出領導者創建的。

I also see -- to your points around top line margin and capital, I see a great opportunity here, Justin.

我還看到 - 對於你關於頂線利潤和資本的觀點，我在這裡看到了一個很好的機會，賈斯汀。

If you think about the last couple of years in the macroeconomic environment with all the inflation that we've experienced, a lot of consumer products have become more expensive, and that includes single-use bottled water and case packs.

如果您考慮過去幾年的宏觀經濟環境以及我們經歷的所有通貨膨脹，許多消費品變得更加昂貴，其中包括一次性瓶裝水和盒裝水。

So our products, whether you get it delivered direct or you go to the retail outlet and get it from the exchange or you get it from a refill station is more affordable relative to the alternative than it's ever been before with high quality.

因此，無論您是直接交付，還是去零售店從交易所獲得，或者從補充站獲得，我們的產品都比以前的高品質替代品更實惠。

We also play in a premium water segment with Mountain Valley, which is a very large and growing part of the water business, both still in sparkling.

我們還與 Mountain Valley 一起涉足優質水領域，這是水業務中非常大且不斷增長的部分，兩者仍處於氣泡水領域。

Margins are great.

利潤空間很大。

You've probably seen that our gross margin has expanded by 400 basis points last year.

您可能已經看到，去年我們的毛利率增加了 400 個基點。

That's really all about productivity.

這確實與生產力有關。

When you look at the productivity, we are benefiting from having both direct delivery and exchange business, and we use the same assets, the same trucks, the same branches.

當你看看生產力時，我們受益於直接交付和交換業務，我們使用相同的資產、相同的卡車、相同的分店。

And we deploy capital really to drive increased productivity and a better use of automation, robotics, all of those things, digitization.

我們部署資本確實是為了提高生產力並更好地利用自動化、機器人技術以及所有這些東西和數位化。

So I think we're really well positioned for the future.

所以我認為我們已經為未來做好了充分的準備。

Justin, thank you for your question.

賈斯汀，謝謝你的提問。

I appreciate the color there.

我很欣賞那裡的顏色。

And then one more, if I may.

如果可以的話，再來一張。

You mentioned the macro environment.

你提到了宏觀環境。

So just wondering how does the macro environment affect your view of cost inflation in the business overall?

那麼只是想知道宏觀環境如何影響您對整體業務成本通膨的看法？

Yes, it's a great question.

是的，這是一個很好的問題。

So we forecast low single-digit inflation for '24, which means that we will not have to take as much pricing to offset that.

因此，我們預測 24 年通膨率將保持在個位數較低水平，這意味著我們不必採取太多定價來抵消這種影響。

And given the compounded inflation over the last couple of years, the value of our water, given the elasticity we're seeing in the consumer goods sector is really well positioned.

考慮到過去幾年的複合通貨膨脹，考慮到我們在消費品行業中看到的彈性，我們的水的價值確實處於有利位置。

So I think the macro environment for us in terms of inflation, post inflation, let's call it, environment is great.

所以我認為我們的宏觀環境在通膨、後通膨方面，我們可以這麼說，環境很棒。

I think David can talk a little bit more later about the interest rate situation but would that's what I would say, Justin.

我認為大衛可以稍後再談談利率情況，但這就是我要說的，賈斯汀。

I appreciate the answers and look forward to working with you.

我感謝您的回答並期待與您合作。

Thank you.

謝謝。

Thank you, Justin.

謝謝你，賈斯汀。

Andrea Teixeira, JPMorgan.

安德里亞·特謝拉，摩根大通。

Hi.

你好。

Good morning.

早安.

This is Drew Levine on for Andrea.

我是德魯·萊文 (Drew Levine) 替安德里亞 (Andrea) 發言。

Thank you for taking our questions.

感謝您接受我們的提問。

Robert, congratulations and welcome.

羅伯特，祝賀並歡迎。

So I wanted to ask on the EBITDA guidance.

所以我想問 EBITDA 指導。

I think it's around 8% growth on a like-for-like basis, probably not including the tuck in M&A or the optimization of the overhead.

我認為同比增長約為 8%，可能不包括併購費用或管理費用優化。

Can you talk maybe about how you're thinking about, one, the sort of cadence of the M&A pipeline and taking cost out as you look through '24?

您能否談談您對 24 年併購管道的節奏以及成本削減的看法？

And then where you see the areas of leverage translate into the 4% to 6% to, call it, 8% EBITDA growth.

然後你會看到槓桿領域轉化為 4% 到 6% 甚至 8% 的 EBITDA 成長。

Thank you, Drew.

謝謝你，德魯。

Well, I'll take those in order of how you asked them.

好吧，我會按照你問的順序來回答。

EBITDA projection is $402 million to $422 million and 22.5% margin at the midpoint.

EBITDA 預測為 4.02 億至 4.22 億美元，中間利潤率為 22.5%。

Last year, that was $380.7 million from continuing operations with a 21.5% margin.

去年，持續經營業務收入為 3.807 億美元，利潤率為 21.5%。

So that would represent a 70 basis points EBITDA margin expansion.

因此，這意味著 EBITDA 利潤率擴大了 70 個基點。

And we do think we're going to continue to expand our gross margins.

我們確實認為我們將繼續擴大毛利率。

And that's on the back of production investments.

這是生產投資的支持。

The automation I referred to earlier, like the one in Los Angeles and reducing inefficiencies, reducing cost and rightsizing.

我之前提到的自動化，例如洛杉磯的自動化，可以減少效率低、降低成本和調整規模。

With regards to the productivity, the $20 million run rate, we'll have achieved that by the end of the year.

至於生產率，即 2000 萬美元的運行率，我們將在今年年底實現這一目標。

And there's a cadence to that through internal reorganizations and other productivity drivers that we're looking at, and we've identified already.

透過我們正在研究的內部重組和其他生產力驅動因素，我們已經確定了這一點。

So gross margin will really truly benefit from leverage scale in our case.

因此，在我們的案例中，毛利率將真正受益於槓桿規模。

As we grow both direct delivery, exchange, refill and premium water, we're just seeing better utilization of assets, whether that be production facilities, the wells we own or the trucks that we own that drive around.

隨著我們直接交付、交換、補充和優質水的發展，我們看到資產的利用得到了更好的利用，無論是生產設施、我們擁有的水井還是我們擁有的行駛的卡車。

Yes, I think I've tried to cover most of your questions there.

是的，我想我已經盡力回答了你們大部分的問題。

I hope that answers your question, Drew.

我希望這能回答你的問題，德魯。

Yes, super helpful.

是的，超級有幫助。

Yes.

是的。

I guess the point being that in addition to the ongoing leverage, it does seem like the EBITDA guidance is conservative to some extent, as you said, on the top line as well.

我想重點是，除了持續的槓桿作用之外，正如您所說，EBITDA 指導在某種程度上似乎也很保守。

But following up on the top line outlook, thank you for kind of giving the -- what's embedded in the guidance, 3.5% pricing on the half volume.

但在營收展望方面，感謝您提供了指導中包含的內容，即半量定價 3.5%。

As you think about looking ahead over the next couple of years, the guidance or the target that was given previously was sort of a high single-digit organic growth aspiration.

當你考慮未來幾年的前景時，先前給予的指導或目標是較高的個位數有機成長願望。

Obviously, you're coming off of a pretty high inflationary environment and more pricing that went through over the past couple of years.

顯然，你正處於一個相當高的通膨環境中，並且過去幾年經歷了更多的定價。

As you look past '24, you went through what excites you about the business.

當你回顧過去的 24 年時，你會經歷讓你對這個行業感到興奮的事情。

But just -- can you maybe talk about your confidence in being able to achieve high single-digit organic growth in the coming years in a more normalized inflationary environment?

但是，您能否談談您對未來幾年在更正常化的通膨環境下實現高個位數有機增長的信心？

Thank you.

謝謝。

Yes, great question, Drew.

是的，很好的問題，德魯。

I'll also touch a little bit on M&A, which was part of your question there, but that's not included in our guidance.

我也會稍微談一下併購，這是您問題的一部分，但這並不包含在我們的指南中。

The way we built our forecast is more pricing in the first half and then a volume acceleration in the second half, and that's really on the back of increased net organic customer growth and the demand that we see in the exchange business, which is really growing at an accelerated high double-digit pace.

我們建立預測的方式是上半年定價更高，然後下半年銷售加速，這實際上是基於淨有機客戶增長以及我們在交易所業務中看到的需求的增長，而這種需求確實在增長以兩位數的高速度加速。

So the way that I would think about this is, it's going to be a combination of unit growth.

所以我的想法是，這將是單位成長的結合。

But also as we identify our customers, we're going to focus more on what we call high value or high impact customers.

但當我們識別客戶時，我們將更專注於我們所謂的高價值或高影響力客戶。

There's a big difference between a household or a commercial customer that orders 10 jugs every two weeks versus somebody who orders one.

每兩週訂購 10 壺的家庭或商業客戶與每兩週訂購一壺的家庭或商業客戶之間存在很大差異。

And we are going to be more focused on unit sales going forward and gallons sold as opposed to any individual underlying metric because the true driver of growth is the number of gallons we sell.

我們將更加關注未來的單位銷售和銷售的加侖數，而不是任何單獨的基本指標，因為成長的真正驅動力是我們銷售的加侖數。

And on top of that, we're going to continue to acquire -- we do about $20 million to $30 million of M&A a year in tuck-ins.

最重要的是，我們將繼續收購——我們每年進行約 2,000 萬至 3,000 萬美元的併購。

And I think we were slightly out of that last year, but we're going to be on the very high end of that this year and likely the year after as well.

我認為去年我們的表現略有下降，但今年我們將處於非常高的水平，後年也可能如此。

We have a full schedule identified of transactions.

我們有一份完整的交易時間表。

Derek Lessard, TD Cowen.

德里克·萊薩德 (Derek Lessard)，TD 考恩 (TD Cowen)。

Yes, thanks for taking my questions.

是的，感謝您回答我的問題。

Congrats on the strong quarter, strong year and Robert good luck in the new role.

祝賀強勁的季度和強勁的一年，祝羅伯特在新職位上好運。

Maybe I'm just going to talk to start from the bottom and maybe just hit on -- if you could walk us through your free cash flow guidance.

也許我只是想從頭開始談談，也許只是順便說一下——如果你能向我們介紹一下你的自由現金流指導。

It seems to have cut that guide has come in well ahead of Street expectations.

該指南的發布似乎遠遠超出了華爾街的預期。

So just maybe curious on the guide and sort of what are your assumptions mostly around working capital as well.

因此，也許您對指南感到好奇，以及您對營運資本的假設是什麼。

Yes.

是的。

I mean, the adjusted free cash flow in quarter four grew to $67.2 million versus the adjusted cash flow in the same quarter a year before $55.9 million, so significant improvement.

我的意思是，第四季度調整後的自由現金流增至 6,720 萬美元，而去年同期調整後的現金流為 5,590 萬美元，這是一個顯著的進步。

But I think the primary driver was increased earnings growth along with improved capital spend.

但我認為主要驅動力是獲利成長的增加以及資本支出的改善。

But let me pass that to David for some additional clarification..

但讓我把這個轉告給大衛，以獲得一些額外的澄清。

Yes.

是的。

So Derek, what we were really pleased with was obviously finishing the year strong with our adjusted EBITDA outperforming that guide, that helped drive a large contribution of the increased free cash flow.

因此，德里克，我們真正感到高興的是，我們調整後的 EBITDA 表現優於該指南，這顯然有助於推動自由現金流增加的巨大貢獻。

Second, we had moderated CapEx at the end of the year, which provided again, additional enhancements to sort of the ability to achieve the $184 million.

其次，我們在年底調整了資本支出，這再次增強了實現 1.84 億美元目標的能力。

And then when our 10-K is filed, you'll see some nice benefits across both inventory control as well as AR, where both of those activities really were a nice tailwind to finish the year.

然後，當我們提交 10-K 時，您會看到庫存控制和 AR 方面的一些不錯的好處，這兩項活動確實是今年結束的一個很好的推動力。

When you transition now into '24's outlook, again, the operating performance and operational scale that comes through the business model with the volume Robert has talked about, both the 1.5% overall volume as well as the double-digit kind of expectations within exchange.

當你現在轉向 24 世紀的展望時，再次看到羅伯特談到的業務模型所帶來的營運績效和營運規模，包括 1.5% 的總銷量以及交易所內兩位數的預期。

That provides, obviously, the EBITDA margin enhancement that you see 170 basis points in Q1, the 70 basis points overall at the end of the year with our midpoint of guide.

顯然，這使得 EBITDA 利潤率在第一季度提高了 170 個基點，並按照我們的指導中點，到年底總體提高了 70 個基點。

The offsets to that are some small increases in cash tax estimates and a little bit of the CapEx that increases in '24 versus the 2023 on a continuing operations basis.

抵消這一影響的是現金稅估算的一些小幅增加以及 24 年與 2023 年相比在持續營運基礎上增加的一點資本支出。

And as of now, as we head into each year, we have some working capital usage as we focus on the organic customer expansion.

到目前為止，隨著我們進入每年，我們都會使用一些營運資金，因為我們專注於有機客戶擴張。

But really, that's where we'll be able to focus and continue to drive greater activity.

但實際上，這才是我們能夠集中精力並繼續推動更大規模活動的地方。

Again, as a reminder, the $175 million free cash flow midpoint does not yet contemplate the approximate $9.5 million of tariff money that might start to flow toward Primo.

再次提醒一下，1.75 億美元的自由現金流中點尚未考慮到可能開始流向 Primo 的大約 950 萬美元的關稅資金。

And when you take that into consideration, that would get us all the way back fully to par to 2023's consolidated outcome.

當你考慮到這一點時，這將使我們完全回到 2023 年綜合結果的標準。

And that's really how we're looking at the walk.

這就是我們真正看待這次步行的方式。

Okay.

好的。

Thanks for that.

感謝那。

And David, just to be clear, you're still enjoying some of the working capital tailwinds that you've come out of the quarter with?

大衛，需要澄清的是，您仍然享受本季帶來的一些營運資金順風車嗎？

Yes, that's correct.

對，那是正確的。

And a lot of it, as you remember, coming out of the supply chain challenges, we were to have been a little over in terms of dispenser inventory.

正如您所記得的那樣，其中許多來自供應鏈挑戰，我們在分配器庫存方面已經有點超出了。

We've managed to work through that well with our retail partners.

我們與零售合作夥伴成功地解決了這個問題。

That allowed us to sell into the channel, get again, very close to that $1 million in sell-through target.

這使我們能夠透過管道進行銷售，再次獲得收益，非常接近 100 萬美元的銷售目標。

And then you'll see some nice enhancements into our AR cycle.

然後您會看到我們的 AR 週期有一些不錯的增強。

And really the continuing operations really allows the benefit of our cash conversion cycle to shine, whereas the domestic entity we are here, we have a much tighter and more rapid cash conversion cycle than our international side of the company would have had.

事實上，持續經營確實讓我們的現金轉換週期的好處得以體現，而我們在這裡的國內實體，我們的現金轉換週期比我們的國際公司要嚴格得多、更快。

Okay.

好的。

That's helpful.

這很有幫助。

And just in terms of your top line across 2023, maybe just talk us through sort of where your customer base ended?

就您 2023 年的營收而言，或許可以告訴我們您的客戶群到底在哪裡？

And then maybe more specifically, could you just talk about the Costco initiative and sort of the progress or the ramp up there?

然後也許更具體地說，你能談談 Costco 的計劃以及那裡的進展或成長嗎？

Yes.

是的。

Let me talk Costco first, and I'll pass it back to David then.

讓我先談談 Costco，然後我會把它轉給 David。

So we had a significant ramp-up in '23 around our Costco program.

因此，我們在 23 年圍繞 Costco 計劃進行了大幅提升。

And if we look at '24, we will have a full program in place fully staffed and with all the events that we want to execute across all the geographies that we want to execute.

如果我們看看 24 年，我們將製定一個完整的計劃，人員配備齊全，並且包含我們想要在所有地區執行的所有活動。

And Costco is a critical partner for us in recruitment of new customers.

Costco 是我們招募新客戶的重要合作夥伴。

I'll pass it over to David.

我會把它轉給大衛。

Yes.

是的。

On the customer side, Derek, we finished strong with Water Direct.

在客戶方面，Derek，我們透過 Water Direct 取得了出色的成績。

Again, normalizing things for folks for the continuing operations side.

再次，為持續營運方面的人員實現正常化。

We mentioned we're about a 1.5 million Water Direct cut base on a run rate going forward.

我們提到，根據未來的運行率，我們將直接削減約 150 萬水。

And really, where we saw a nice volume lift there, as Robert mentioned, the 2% that came through in Q4, as we transition into 2024, again, we'll have that Costco benefit for the entire calendar year, whereas last year would have been a ramp period.

事實上，正如羅伯特所提到的，我們看到了銷量的大幅提升，隨著我們過渡到 2024 年，第四季度銷量增長了 2％，我們將在整個日曆年中享受 Costco 的好處，而去年已經是一個斜坡期。

And then complementing that business is the strength that we continue to see in the health of our retail consumers, and that retail health is exhibiting itself through both the exchange, which continues to produce significant growth in units as well as refill for the first time in several quarters turned back volume positive in Q4 of last year, which means that the consumer there has now cycled through the price increase impact and that volume is now back net positive on a year-over-year basis.

然後，我們在零售消費者的健康狀況中繼續看到的優勢是對該業務的補充，零售健康狀況正在透過交易所展現出來，交易量繼續實現顯著增長，並在 2019 年首次重新填充。去年第四季度，有幾個季度的銷售恢復為正值，這意味著那裡的消費者現在已經經歷了價格上漲的影響，並且銷售現在比去年同期恢復為淨正值。

And again, when you look at all three legs of our water business, that really showcases the health.

再說一次，當你看看我們水業務的所有三個支柱時，你會發現這確實顯示了健康狀況。

We have the premium customer in Water Direct, where our customer growth will expand.

我們在 Water Direct 擁有優質客戶，我們的客戶成長將會擴大。

And then on the two retail sides at the different economic price points between exchange and refill providing customers an alternative in this sort of environment.

然後，在兩個零售方面，交換和補充之間的經濟價格點不同，為客戶在這種環境中提供了另一種選擇。

And Robert talked about the great value that we provide sort of in our bulk category.

羅伯特談到了我們在散裝類別中提供的巨大價值。

Absolutely good work there.

那裡的工作絕對好。

And maybe one last one for me is on the North American EBITDA margin in Q4, in particular, was down, let's call it, 25 bps year-over-year but you've got all these efficiency initiatives on the go.

對我來說，最後一個可能是第四季度北美 EBITDA 利潤率，我們可以這麼說，同比下降了 25 個基點，但所有這些效率舉措都在進行中。

So any color there would be helpful.

所以任何顏色都會有幫助。

And I just -- and I'm also asking the questions -- I assume that you're including corporate overhead in there.

我只是──我也在問這些問題──我假設你把公司管理費用也算進去了。

So I was curious if what we should be modeling going forward?

所以我很好奇我們接下來該建模什麼？

Yes, great question.

是的，很好的問題。

It is -- it does show on the page as a decline in basis points.

它確實在頁面上顯示為基點下降。

Most of that is related to the repatriation of our shared services overhead that would have been distributed across our global platform.

其中大部分與我們的共享服務開銷的匯回有關，這些開銷本來可以分佈在我們的全球平台上。

When we talk to folks in November about the announced sale, we talked about how 2024 would have to absorb some of that overhead that previously would have been allocated to the international businesses.

當我們在 11 月與人們談論宣布的出售時，我們談到了 2024 年將如何承擔先前分配給國際業務的部分管理費用。

That is what you see there.

這就是你在那裡看到的。

But what I'd like to direct you to is immediately in the Q1 guide of our EBITDA, where you see -- with the exhibits we've provided to help rationalize each quarter for continuing operations in '23, you see that 170 basis point expansion in Q1's EBITDA margin.

但我想引導您立即查看我們 EBITDA 的第一季指南，您可以在其中看到 - 透過我們提供的幫助合理化 23 年每個季度持續運營的展示，您會看到 170 個基點第一季度EBITDA 利潤率擴大。

And then you see the overall 70 bps, again at the full year level, both of those starting to exhibit our ability to reduce costs, drive scale.

然後你會看到整體 70 個基點，同樣是全年水平，這兩個基點都開始展示我們降低成本、擴大規模的能力。

And again, that's prior to what Robert mentioned will be the ramp rate of our business optimization program that gets to sort of full bright, if you will, by the end of the year.

再說一遍，這是在羅伯特提到的之前，我們的業務優化計劃的斜坡率將在今年年底前全面實現。

Okay, that's helpful.

好的，這很有幫助。

Thanks, David.

謝謝，大衛。

John Zamparo, CIBC.

約翰·贊帕羅，CIBC。

Questions on route optimization, and is there anything you can say to frame the remaining opportunity on AR over the next few years?

關於路線優化的問題，對於未來幾年 AR 的剩餘機會，您有什麼可以說的嗎？

And just to be clear, is it completely separate to or incremental to the $20 million in business optimization savings you referred to?

需要澄清的是，它與您提到的 2000 萬美元業務優化節省是完全獨立的還是增量的？

Yes, John, thanks.

是的，約翰，謝謝。

This is David.

這是大衛。

It is.

這是。

So ARO would be a natural outcome of the business model gaining the volumetric growth that comes either from the Water Direct side of the business or the water exchange growth that comes out through our retail relationships.

因此，ARO 將是業務模型獲得體積增長的自然結果，該體積增長要么來自業務的 Water Direct 方面，要么來自我們的零售關係帶來的水交換增長。

There is a natural ceiling, but as a reminder, inside that, that is a route average on a roughly 2,000 route basis.

存在一個自然上限，但提醒一下，在這個上限內，這是基於大約 2,000 條路線的平均路線。

So there always are opportunities to bring sort of the lower end of that optimization toward the mean.

因此，總有機會使優化的低端趨於平均值。

Again, it is not contemplated in necessarily the $20 million of network optimization we're seeking as that might be more about should we be in this branch or that branch?

同樣，我們尋求的 2000 萬美元的網路優化不一定是考慮在內，因為這可能更多的是我們應該在這個分支還是那個分支？

And should we have sort of these connections to our communities where the demand is.

我們是否應該與有需求的社群建立某種連結。

But again, while it does have a natural ceiling, we're always looking at it on a route-by-route basis and working sort of anything below par more toward that mean.

但同樣，雖然它確實有一個自然上限，但我們總是在逐條路線的基礎上審視它，並努力採取任何低於標準的措施，以達到這個平均值。

Got it.

知道了。

Okay.

好的。

That's helpful.

這很有幫助。

And then my follow-up is on the debt target.

然後我的後續行動就是債務目標。

You're seeing net leverage at sub-2.5x. I guess you want to be conservative there, but that provides for meaningfully higher leverage than what you have currently, especially relative to the '24 outlook that accounts for the higher buyback, that accounts for the dividend increase, and that's especially true when you factor in some proceeds for the businesses you've committed to selling.

您看到的淨槓桿率低於 2.5 倍。我猜你想在這方面保持保守，但這提供了比你目前擁有的槓桿率高得多的槓桿，特別是相對於24 年的前景而言，回購率更高，股息增加，當你考慮因素時尤其如此您承諾出售的企業的部分收益。

So I'm wondering what else you're baking into that 2.5x number?

所以我想知道你還在那個 2.5 倍的數字中烘焙了什麼？

Yes.

是的。

I guess maybe it should be better said is that's a long-term ceiling we hope to remain below.

我想也許應該說這是我們希望保持在以下的長期上限。

We have no immediate needs in this year of 2024 sort of walking that backwards.

在 2024 年這一年，我們沒有立即需要那種倒退的感覺。

But as we start to acquire things, including sort of what might be a larger water direct tuck-in year, obviously, the cash will go out, the EBITDA will come back in and then that EBITDA synergizes down on its first anniversary and second anniversary.

但當我們開始收購東西時，包括可能是更大的水直接收入年，顯然，現金會花出去，EBITDA 將回來，然後 EBITDA 在其一周年和兩週年時協同下降。

So that's just really more of the little stuff that would be at play within the leverage.

因此，這實際上只是在槓桿作用中發揮作用的更多小事。

But at no time this year, do we really anticipate heading back towards the 2.5, we were just kind of giving folks a longer-term sort of outlook to -- obviously, we've done great steps and taking great steps to improve the balance sheet, and we'd like to keep it there.

但今年我們從來沒有真正預期會回到 2.5，我們只是給人們一種更長遠的展望——顯然，我們已經採取了很大的步驟，並採取了很大的步驟來改善平衡工作表，我們希望將其保留在那裡。

Understood.

明白了。

Thank you very much.

非常感謝。

Thanks, John.

謝謝，約翰。

Pavel Molchanov, Raymond James.

帕維爾·莫爾恰諾夫，雷蒙德·詹姆斯。

Thanks for taking the question.

感謝您提出問題。

Going back to the M&A topic.

回到併購話題。

Obviously, it's always opportunistic, but are there any geographies within North America where you feel like you need some additional help to kind of penetrate the market?

顯然，這總是機會主義的，但是北美是否有任何地區您覺得您需要一些額外的幫助來滲透市場？

Yes, Pavel, that's a very, very good question.

是的，帕維爾，這是一個非常非常好的問題。

We have identified ready to sell businesses, usually family-owned operators across the nation that are highly complementary geographically to our current footprint.

我們已經確定了準備出售的企業，通常是全國各地的家族經營者，這些企業在地理上與我們目前的業務高度互補。

So what we wouldn't do is go buy a branch that's within 25 miles of an existing branch, but really, we are looking for new places to go serve new customers with their existing customer base.

因此，我們不會去購買距離現有分行 25 英里以內的分支機構，但實際上，我們正​​在尋找新的地方來為新客戶及其現有客戶群提供服務。

But we're also overlaying that with geographic trends, migration trends, there's definitely some areas that are growing in population in certain states, certain cities that we are definitely looking at improving our footprint in.

但我們也將其與地理趨勢、移民趨勢結合，在某些州、某些城市，肯定有一些地區的人口在成長，我們肯定會考慮改善我們的足跡。

And then even within certain states within the network of branches, we may need to open new branches as well in the middle of certain geographies where we're just currently driving too far, right?

然後，即使在分支機構網絡內的某些州內，我們也可能需要在某些地理位置的中部開設新的分支機構，而我們目前在這些地區開得太遠了，對吧？

So it's going to be a combination, but there is a pre-identified multiyear list of owner-operated, water direct service companies that we have identified that we have relationships with, and we are the preferred buyer for right now.

因此，這將是一個組合，但我們已經確定了與我們有關係的業主經營的多年期供水直接服務公司名單，我們是目前的首選買家。

That's helpful.

這很有幫助。

Following up, the multiple at which you sold the European business is paradoxically higher than the multiple at which the stock trades today on the North American business.

接下來，您出售歐洲業務的本益比反而高於該股票今天在北美業務交易的本益比。

Bearing that in mind, is there an opportunity to accelerate share buyback further, maybe even do a leverage buyback just given the spread between the public market and the private?

考慮到這一點，考慮到公開市場和私人市場之間的價差，是否有機會進一步加速股票回購，甚至可能進行槓桿回購？

Yes.

是的。

Thanks.

謝謝。

Our approach has been so far to increase that share authorization, as mentioned, to $75 million.

如前所述，到目前為止，我們的方法是將股票授權增加到 7500 萬美元。

We were able to deploy approximately $2 million of that new authorization in the end of '23 million. and then have that sort of as an evergreen usage across '24.

我們能夠在 2300 萬年底部署約 200 萬美元的新授權。然後將其作為 24 年的常青用途。

Our Board is always looking at opportunities at future discussions depending on where we are with our capital deployment.

我們的董事會始終在未來的討論中尋找機會，這取決於我們的資本部署情況。

Again, we've talked about the enhanced M&A pipeline this year but our Board is consciously and actively considering each and every quarter what's best to do and sort of direct us there.

我們再次討論了今年增強的併購管道，但我們的董事會每季都有意識地、積極地考慮什麼是最好的做法，並指導我們實現這一目標。

Part of it was obviously to step up our dividend with a 13% increase to $0.36 annualized payment this year.

其中一部分顯然是為了提高我們的股息，今年的年化股息增加了 13% 至 0.36 美元。

But I understand the question, we consistently look at that across the year.

但我理解這個問題，我們全年都會持續關注這個問題。

Thanks very much.

非常感謝。

Thanks, Pavel.

謝謝，帕維爾。

Thank you.

謝謝。

There are no further questions.

沒有其他問題了。

I will now turn the call back over to Robert for closing comments.

我現在將把電話轉回羅伯特以徵求結束意見。

Well, thank you all for attending today's call and for your continued interest in Primo Water.

好的，感謝大家參加今天的電話會議以及對 Primo Water 的持續關注。

As I hope you can tell, I'm excited to be part of the Primo Water team.

正如我希望您能知道的那樣，我很高興成為 Primo Water 團隊的一員。

The path started is the right one to build on.

開始的道路是正確的發展道路。

And overall, we have the tools to win.

總的來說，我們擁有獲勝的工具。

We have a lot of work ahead of us, and I, along with our team, are committed to taking Primo Water to the next level.

我們還有很多工作要做，我和我們的團隊致力於將 Primo Water 提升到一個新的水平。

Thank you for joining us in our exciting water journey, and I look forward to meeting many of you at upcoming events.

感謝您加入我們激動人心的水上之旅，我期待在即將舉行的活動中見到你們中的許多人。

Ladies and gentlemen, this concludes your conference call for today.

女士們、先生們，今天的電話會議到此結束。

We thank you for participating, and we ask that you please disconnect.

我們感謝您的參與，並請您斷開連線。