Resideo Technologies Inc (REZI) 2023 Q2 法說會逐字稿

Ladies and gentlemen, at this time, I would like to welcome everyone to the Resideo Technologies Second Quarter 2023 Earnings Conference Call. Today's call is being recorded. (Operator Instructions)

女士們、先生們，此時此刻，我歡迎大家參加 Resideo Technologies 2023 年第二季度收益電話會議。今天的通話正在錄音。 （操作員說明）

It is now my pleasure to turn today's call over to Mr. Jason Willey, Vice President of Investor Relations. Mr. Willey, you may now begin.

現在我很高興將今天的電話轉給投資者關係副總裁 Jason Willey 先生。威利先生，您現在可以開始了。

Good afternoon, everyone, and thank you for joining us for Resideo's Second Quarter 2023 Earnings Call. On today's call will be Jay Geldmacher, Resideo's Chief Executive Officer; and Tony Trunzo, our Chief Financial Officer. A copy of our earnings release and related presentation materials are available on the Investor Relations page of our website at investors.resideo.com.

大家下午好，感謝您參加 Resideo 2023 年第二季度財報電話會議。 Resideo 首席執行官 Jay Geldmacher 出席今天的電話會議；以及我們的首席財務官托尼·特倫佐 (Tony Trunzo)。我們的收益報告和相關演示材料的副本可在我們網站的投資者關係頁面上找到：investors.resideo.com。

We would like to remind you that this afternoon's presentation contains forward-looking statements. Statements other than historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Resideo's filings with the Securities and Exchange Commission. The company assumes no obligation to update any such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our annual report on Form 10-K and other SEC filings.

我們想提醒您，今天下午的演示包含前瞻性陳述。本次電話會議中除歷史事實之外的陳述可能構成前瞻性陳述，不能保證未來業績或結果，並涉及許多風險和不確定性。由於多種因素，包括 Resideo 向美國證券交易委員會提交的文件中不時描述的因素，實際結果可能與前瞻性陳述中的結果存在重大差異。該公司不承擔更新任何此類前瞻性陳述的義務。我們在 10-K 表格年度報告和其他 SEC 文件中確定了影響我們業績的主要風險和不確定性。

With that, I will turn the call over to Jay.

這樣，我就把電話轉給傑伊。

Thank you, Jason, and good afternoon, everyone. We reported Q2 revenue and operating profit within our original range despite the ongoing challenging residential market. We continue to make progress on important long-term value drivers, and our pace of new product introductions is accelerating.

謝謝杰森，大家下午好。儘管住宅市場持續充滿挑戰，但我們報告的第二季度收入和營業利潤仍處於原來的範圍內。我們繼續在重要的長期價值驅動因素上取得進展，新產品推出的步伐正在加快。

In the first half of this year, we introduced new products enhancing our video capabilities in security, expanding our connected water leak portfolio and growing our presence in the European heat pump market. We are continuing to reduce our cost structure and have further actions identified for the second half of 2023 that, combined with our Q4 2022 program, are expected to generate at least $115 million of annualized savings. Cash flow improved substantially in Q2, and we expect continued improvements as 2023 progresses.

今年上半年，我們推出了新產品，增強了我們的安全視頻能力，擴大了我們的聯網漏水產品組合，並擴大了我們在歐洲熱泵市場的影響力。我們正在繼續降低成本結構，並確定了 2023 年下半年的進一步行動，結合我們的 2022 年第四季度計劃，預計每年可節省至少 1.15 億美元。第二季度現金流大幅改善，我們預計隨著 2023 年的進展，現金流將繼續改善。

Soft end-market demand and excess channel inventory levels in a number of our markets impacted the second quarter results, and we expect these headwinds to continue in the second half of 2023. In response to slower demand, we are taking additional actions to cut costs with a focus on structural improvements that are designed to create leverage when market conditions improve. At the same time, we are progressing on additional portfolio and factory optimization actions within products and solutions. I look forward to sharing more details on several of these actions before year-end.

我們多個市場的終端市場需求疲軟和渠道庫存水平過剩影響了第二季度的業績，我們預計這些不利因素將在 2023 年下半年持續。為了應對需求放緩，我們正在採取額外行動來削減成本重點是結構性改進，旨在在市場狀況改善時創造槓桿作用。與此同時，我們正在產品和解決方案中進行其他產品組合和工廠優化行動。我期待在年底前分享其中一些行動的更多細節。

We also announced today that our Board of Directors has approved a $150 million share repurchase authorization. Both management and the Board see substantial opportunity for value creation at Resideo through continued operational transformation and the ability to deliver strong and consistent cash generation. We do not believe our current share price reflects these dynamics or our unique relationship with the Pro and the long-term opportunity to leverage this across the markets we serve. We see share repurchase as an important part of a balanced capital allocation plan that includes organic and inorganic investment in the business. Our current liquidity position is strong, and our current leverage level is consistent with our long-term target.

我們今天還宣布，董事會已批准 1.5 億美元的股票回購授權。管理層和董事會都看到了 Resideo 通過持續的運營轉型和提供強勁且持續的現金生成能力來創造價值的巨大機會。我們不認為我們當前的股價反映了這些動態或我們與 Pro 的獨特關係以及在我們服務的市場中利用這一點的長期機會。我們認為股票回購是平衡資本配置計劃的重要組成部分，其中包括對業務的有機和無機投資。我們當前的流動性狀況強勁，當前的槓桿水平與我們的長期目標一致。

Turning to the businesses. Products & Solutions' general market conditions remained challenging during the second quarter with slower retail traffic, continued excess inventory in our HVAC distribution channel and reduced new and existing home sales impacted by higher interest rates. These dynamics negatively impacted both volumes and mix. Demand in the HVAC market was further impacted by cool spring weather across much of the U.S. Our price realization remains strong and while slowing demand likely means incremental price opportunity will be more limited, to date, we have a good success at holding price across most categories.

轉向企業。產品和解決方案的總體市場狀況在第二季度仍然充滿挑戰，零售流量放緩，我們的暖通空調分銷渠道庫存持續過剩，以及受利率上升影響的新房和現房銷售減少。這些動態對銷量和組合都產生了負面影響。暖通空調市場的需求受到美國大部分地區春季涼爽天氣的進一步影響。我們的價格實現仍然強勁，雖然需求放緩可能意味著增量價格機會將更加有限，但迄今為止，我們在大多數類別的價格保持方面取得了良好的成功。

While U.S. residential new construction activity is down double digits compared with 2022, we are adding content in this important market. In Q2, our average product dollar content for new home grew by over 15% year-over-year, driven by increased penetration of our smoke and CO detector portfolio into the homebuilder channel. This is a great example of execution on the value creation opportunities of bringing First Alert under the Resideo umbrella. First Alert had a solid Q2 with total sales up sequentially year-over-year.

儘管美國住宅新建活動與 2022 年相比下降了兩位數，但我們正在這一重要市場中增加內容。第二季度，由於我們的煙霧和一氧化碳探測器產品組合在住宅建築商渠道中的滲透率不斷提高，我們的新房平均產品價值同比增長了 15% 以上。這是將 First Alert 納入 Resideo 的價值創造機會的一個很好的例子。 First Alert 第二季度業績強勁，總銷售額同比增長。

We continue to see progress on supply chain and sourcing fronts with much lower broker buy activity compared to last year. We also realized $13 million of year-over-year freight savings and have aggressively managed our variable labor costs at our factories.

我們繼續看到供應鍊和採購方面取得的進展，與去年相比，經紀人購買活動大大減少。我們還實現了同比 1300 萬美元的運費節省，並積極管理工廠的可變勞動力成本。

Our new product introductions are going well. We have more in the pipeline. The First Alert video doorbell and First Alert branded WiFi water leak detection and shutoff valve have established themselves in the market and garnered positive initial market feedback. In the second half, our plans include the introduction of a new outdoor security camera, adding to our First Alert water leak detection offering and continuing our work with a number of heat pump OEMs. Additionally, we'll be launching new First Alert smoke and fire alarm products compliant with the upcoming UL 8th addition release.

我們的新產品推出進展順利。我們還有更多的計劃正在進行中。 First Alert 可視門鈴和 First Alert 品牌的 WiFi 漏水檢測和截止閥已在市場上站穩腳跟，並獲得了積極的初步市場反饋。下半年，我們的計劃包括推出新的室外安全攝像頭，增加我們的 First Alert 漏水檢測產品，並繼續與許多熱泵 OEM 廠商合作。此外，我們將推出符合即將推出的 UL 第 8 版附加版本的新 First Alert 煙霧和火災報警產品。

ADI's second quarter revenue was essentially flat compared with Q2 2022. ADI continues to execute on expanding its e-commerce and touchless sales. ADI saw continued softness in residential AV and security categories while commercial category showed more stability, led by continued strong growth in access control.

與 2022 年第二季度相比，ADI 第二季度收入基本持平。ADI 繼續擴大其電子商務和非接觸式銷售。 ADI 的住宅視音頻和安全類別持續疲軟，而商業類別則在訪問控制持續強勁增長的帶動下表現出更加穩定。

With that, I will turn the call over to Tony to discuss second quarter performance and 2023 outlook in more detail.

接下來，我將把電話轉給托尼，更詳細地討論第二季度的業績和 2023 年的前景。

Thank you, Jay, and good afternoon, everyone. We reported consolidated second quarter revenue of $1.6 billion, a decline of 5% compared to the record levels experienced in Q2 last year. Compared with Q2 2021, revenue was up 8% and has grown at a 7% compound annual rate since the second quarter of 2019.

謝謝杰伊，大家下午好。我們公佈的第二季度綜合收入為 16 億美元，與去年第二季度的創紀錄水平相比下降了 5%。與2021年第二季度相比，收入增長8%，自2019年第二季度以來複合年增長率為7%。

Operating income for the quarter was $153 million compared to $186 million last year. Fully diluted earnings per share were $0.34 compared with $0.63 last year, and adjusted EBITDA was $149 million compared to $180 million a year earlier.

本季度營業收入為 1.53 億美元，去年同期為 1.86 億美元。完全攤薄每股收益為 0.34 美元，而去年為 0.63 美元；調整後 EBITDA 為 1.49 億美元，而去年同期為 1.8 億美元。

Q2 cash from operations was strong at $121 million compared with $35 million last Q2. We expect improvements in working capital will enable us to generate at least $280 million of cash from operations for the full year 2023.

第二季度運營現金強勁，達到 1.21 億美元，而上一季度為 3500 萬美元。我們預計營運資金的改善將使我們能夠在 2023 年全年從運營中產生至少 2.8 億美元的現金。

Over time, we expect inventory turns to be the largest driver of improved working capital. The pace of progress on inventory should accelerate in 2024 as we manage through committed inventory related to agreements signed during a tighter supply environment. Ultimately, we expect Products & Solutions to reduce their inventory days from the current level in the low 90s to a target of around 70 days, which, if successful, would generate approximately $150 million in cash. We expect cash from operations in 2023 to be affected by approximately $25 million of cash restructuring charges.

隨著時間的推移，我們預計庫存將成為營運資金改善的最大推動力。由於我們通過與供應緊張環境下簽署的協議相關的承諾庫存進行管理，因此 2024 年庫存進展速度應該會加快。最終，我們預計 Products & Solutions 將庫存天數從目前的 90 多天左右減少到 70 天左右的目標，如果成功，將產生約 1.5 億美元的現金。我們預計 2023 年運營現金將受到約 2500 萬美元現金重組費用的影響。

Products & Solutions' second quarter revenue of $677 million was down 11% compared with record second quarter 2022 performance. Compared with Q2 2021, revenue was up 13% and has grown at a 6% compound rate over the past 4 years. Price realization added approximately $30 million to revenue year-over-year, but was more than offset by a 15% decline in unit volumes.

產品與解決方案第二季度收入為 6.77 億美元，與 2022 年第二季度創紀錄的業績相比下降了 11%。與 2021 年第二季度相比，收入增長了 13%，過去 4 年復合增長率為 6%。價格實現使收入同比增加約 3000 萬美元，但被單位銷量下降 15% 所抵消。

Slowing retail traffic, accelerating efforts by our HVAC distribution customers to reduce inventory levels and weak OEM volumes for furnace and boiler components all contributed to the unit volume drop. Also impacting Q2 performance was less favorable weather across major markets in the U.S. and continued challenges in our traditional security markets.

零售流量放緩、我們的暖通空調分銷客戶加快努力降低庫存水平以及熔爐和鍋爐組件的 OEM 銷量疲弱，這些都導致了單位銷量的下降。同樣影響第二季度業績的還有美國主要市場的不利天氣以及我們傳統安全市場的持續挑戰。

Sequentially, Products & Solutions' revenue was up 3%, primarily driven by growth of smoke and carbon monoxide detector products. Products & Solutions gross margin in Q2 was 38.3% up 100 basis points from last Q2. The increase reflects more favorable freight, raw material and component costs, partially offset by the impact of reduced volumes on fixed cost absorption, lower air product sales and unfavorable mix within energy products.

隨後，產品與解決方案部門的收入增長了 3%，這主要是由煙霧和一氧化碳探測器產品的增長推動的。第二季度產品和解決方案毛利率為 38.3%，較上季度增長 100 個基點。這一增長反映了更有利的運費、原材料和零部件成本，但部分被固定成本吸收量減少、航空產品銷量下降以及能源產品中不利組合的影響所抵消。

Total operating expenses for Products & Solutions were flat year-over-year as cost reduction efforts offset labor and services inflation and continued investment in software development. Products & Solutions operating profit was $128 million or 18.9% of sales compared with $154 million or 20.2% of sales last year.

產品和解決方案的總運營支出同比持平，因為成本削減努力抵消了勞動力和服務通脹以及對軟件開發的持續投資。產品與解決方案部門的營業利潤為 1.28 億美元，佔銷售額的 18.9%，而去年為 1.54 億美元，佔銷售額的 20.2%。

ADI Q2 revenue was $925 million, essentially flat to the prior year. ADI revenue has grown at a 7% compound rate over the past 4 years. Growth in North America of 2% was offset by declines in EMEA as well as the sale of our India operations in late 2022. We saw strength in the access control category and continued softness in residential intrusion and AV categories.

ADI第二季度營收為9.25億美元，與上年基本持平。過去 4 年，ADI 收入以 7% 的複合增長率增長。北美地區 2% 的增長被歐洲、中東和非洲地區的下滑以及 2022 年底印度業務的出售所抵消。我們看到門禁控制類別的強勢，以及住宅入侵和 AV 類別的持續疲軟。

ADI gross margin in the second quarter was 19.2% compared with 20% last year when we saw the peak impact of transitory inflationary pricing benefits. We believe the margin levels we have seen over the past 3 quarters are sustainable, driven by pricing optimization, exclusive brands and growth in touchless sales.

ADI 第二季度的毛利率為 19.2%，而去年我們看到暫時性通脹定價效益的峰值影響為 20%。我們相信，在定價優化、獨家品牌和非接觸式銷售增長的推動下，過去三個季度的利潤水平是可持續的。

ADI operating profit of $79 million was down 8% compared with record performance in the prior year. During the second quarter, ADI initiated restructuring activities, including targeted headcount reductions and slowing investment spending. This resulted in a $2 million charge to our Q2 results. Second quarter corporate costs were $54 million, flat with the prior year second quarter.

ADI 營業利潤為 7900 萬美元，與上一年創紀錄的業績相比下降了 8%。第二季度，ADI 啟動了重組活動，包括有針對性的裁員和放緩投資支出。這導致我們第二季度業績損失了 200 萬美元。第二季度企業成本為 5400 萬美元，與去年第二季度持平。

Consistent with external forecasts and indicators, we expect residential market conditions to remain soft through the remainder of 2023 with continued year-on-year volume declines creating both revenue and margin headwinds in our Products & Solutions business. As a result, we are taking additional aggressive action to reduce costs. We anticipate taking a restructuring charge of at least $25 million in Q3 with actions across the company that are expected to generate additional in-year savings of at least $15 million and $45 million on an annualized basis.

與外部預測和指標一致，我們預計住宅市場狀況在 2023 年剩餘時間內將保持疲軟，銷量同比持續下降，給我們的產品和解決方案業務帶來收入和利潤率的不利影響。因此，我們正在採取額外積極的行動來降低成本。我們預計第三季度將承擔至少 2500 萬美元的重組費用，並在整個公司範圍內採取行動，預計將在年內額外節省至少 1500 萬美元，按年化計算可節省 4500 萬美元。

For the full year, we now expect revenue to be in the range of $6.19 billion to $6.29 billion, implying revenue down 2% at the midpoint. Consolidated gross margin is expected to be in the range of 26.2% to 27.2% and operating profit is expected to be in the range of $530 million to $570 million, including $29 million of restructuring charges. We expect GAAP earnings per share to be in the range of $1.15 to $1.35 and non-GAAP EPS to be in the range of $1.29 to $1.49. Adjusted EBITDA is expected to be in the range of $538 million to $578 million for 2023.

我們現在預計全年收入在 61.9 億美元至 62.9 億美元之間，這意味著收入中點下降 2%。綜合毛利率預計在 26.2% 至 27.2% 之間，營業利潤預計在 5.3 億美元至 5.7 億美元之間，其中包括 2900 萬美元的重組費用。我們預計 GAAP 每股收益將在 1.15 美元至 1.35 美元之間，非 GAAP 每股收益將在 1.29 美元至 1.49 美元之間。 2023 年調整後 EBITDA 預計將在 5.38 億美元至 5.78 億美元之間。

For the third quarter, we expect revenue to be in the range of $1.515 billion to $1.565 billion, consolidated gross margin in the range of 26.1% to 27.1% and GAAP operating profit in the range of $105 million to $125 million, including $25 million of restructuring costs. We expect GAAP earnings per share of between $0.14 and $0.24 and non-GAAP earnings per share of $0.27 to $0.37. Adjusted EBITDA is expected to be $124 million to $144 million.

我們預計第三季度收入將在15.15 億美元至15.65 億美元之間，綜合毛利率將在26.1% 至27.1% 之間，公認會計原則營業利潤將在1.05 億美元至1.25 億美元之間，其中2500萬美元重組成本。我們預計 GAAP 每股收益為 0.14 至 0.24 美元，非 GAAP 每股收益為 0.27 至 0.37 美元。調整後 EBITDA 預計為 1.24 億至 1.44 億美元。

In February, when we provided our annual outlook, we noted that 2023 presented unusual market factors that make revenue forecast challenging and that we will respond to market dynamics by managing costs to preserve margin while continuing our focus on new product initiatives and overall business transformation. The cost actions we took late last year, combined with our planned Q3 actions, are in response to this dynamic. In aggregate, we expect these programs to generate at least $115 million in annual cost savings. We are also focused on achieving greater functional efficiency and anticipate further savings beginning later this year as part of that process.

2 月份，當我們提供年度展望時，我們指出2023 年出現了不尋常的市場因素，這使得收入預測具有挑戰性，我們將通過管理成本以保持利潤率來應對市場動態，同時繼續關注新產品計劃和整體業務轉型。我們去年年底採取的成本行動以及我們計劃的第三季度行動就是為了應對這一動態。總的來說，我們預計這些計劃每年可節省至少 1.15 億美元的成本。我們還致力於實現更高的職能效率，並預計從今年晚些時候開始，作為該流程的一部分，將進一步節省開支。

As Jay noted, we are also pursuing larger projects around portfolio optimization and manufacturing efficiency. While the timing of any individual project is difficult to predict, we hope to have further news on both fronts during Q3. Additionally, as a component of our budgeting and strategic planning work this fall, we anticipate being able to provide updated long-term margin frameworks for both of our businesses.

正如 Jay 指出的那樣，我們還在圍繞產品組合優化和製造效率開展更大的項目。儘管很難預測任何單個項目的時間安排，但我們希望在第三季度在這兩個方面獲得更多消息。此外，作為我們今年秋季預算和戰略規劃工作的一部分，我們預計能夠為我們兩家公司提供更新的長期利潤框架。

I will now turn the call back to Jay for a few concluding remarks before we take questions.

現在，在我們回答問題之前，我將把電話轉回給傑伊，讓他做一些總結性發言。

Thanks, Tony. We responded to challenging market conditions by cutting costs, improving cash flow and continuing to focus on new products and building strong relationships with customers and partners. We believe these activities will have a meaningful impact on performance and margins as market conditions improve. We remain focused on our long-term vision of helping create a world where homes and buildings are good for the planet and where technology works to simplify everyday life. To accomplish this and drive value for our stakeholders, we will continue to leverage our unique position with professional contractors, our unsurpassed residential product breadth and our leading ADI distribution platform. Thank you to the entire Resideo team for their continued focus and commitment to delivering for our customers.

謝謝，托尼。我們通過削減成本、改善現金流、繼續關注新產品以及與客戶和合作夥伴建立牢固的關係來應對充滿挑戰的市場條件。我們相信，隨著市場狀況的改善，這些活動將對業績和利潤產生有意義的影響。我們仍然專注於我們的長期願景，即幫助創造一個家園和建築對地球有益、技術可以簡化日常生活的世界。為了實現這一目標並為我們的利益相關者創造價值，我們將繼續利用我們在專業承包商中的獨特地位、我們無與倫比的住宅產品廣度和我們領先的 ADI 分銷平台。感謝整個 Resideo 團隊對為客戶提供服務的持續關注和承諾。

This concludes our prepared remarks. Operator, we are now ready for questions.

我們準備好的發言到此結束。接線員，我們現在準備好提問了。

(Operator Instructions) Your first question is from Erik Woodring with Morgan Stanley.

（操作員說明）您的第一個問題來自摩根士丹利的 Erik Woodring。

This is [Maya] on for Erik Woodring. Just as my first question, how should we think about kind of the timing and cadence of the inventory -- the channel inventory work down? I know you mentioned like those challenges should persist until year-end, but is this something that you kind of think will be back to normalized levels by year-end?

這是埃里克·伍德林的[瑪雅]。正如我的第一個問題，我們應該如何考慮庫存的時機和節奏——渠道庫存下降？我知道您提到這些挑戰應該持續到年底，但您認為到年底這會恢復到正常水平嗎？

It's Tony. Thanks for the question. No, I don't -- we're -- our target for inventory levels in the Products & Solutions business is 70 days. We're currently running in the low 90s. And to get from where we are to that target is going to take some time for a couple of reasons. The first is during the supply chain challenges to secure supply of certain components, we entered into some agreements that will continue on through this year and into next year with firm commitments. So we're going to have an inflow of some of that inventory that we've committed to. It's all going to be good inventory because these are long-lived products, and we'll eventually use it. But we're going to have inventory flowing in at the same time that we're seeing volumes decline.

是托尼。謝謝你的提問。不，我不認為——我們是——我們產品和解決方案業務的庫存水平目標是 70 天。我們目前正處於 90 年代低水平。由於幾個原因，從我們現在的位置到這個目標將需要一些時間。首先是在確保某些組件供應的供應鏈挑戰期間，我們簽訂了一些協議，這些協議將持續到今年和明年，並做出堅定的承諾。因此，我們承諾的部分庫存將會流入。這一切都將成為良好的庫存，因為這些是壽命長的產品，我們最終會使用它。但在我們看到銷量下降的同時，我們將有庫存流入。

So the recovery to that and improvement to that targeted 70 days is going to carry us -- it's hard to say exactly how long because it's going to be dependent on how quickly our volumes rebound, but it will be well into 2024 before we get to those kind of levels.

因此，恢復到目標 70 天的水平將幫助我們 - 很難說具體需要多長時間，因為這將取決於我們的銷量反彈的速度，但要到 2024 年我們才能達到目標那種水平。

Yes. And I would add, and Tony has said it already, that the target of 70 that we laid out there, I think, is very doable. At this time, it's hard for a lot of people to predict exactly in terms of some of the market recovery. But we have specific teams on this to manage this and manage this down and feel good that we can move the ball forward to that target that we've laid out.

是的。我想補充一點，托尼已經說過了，我認為我們制定的 70 的目標是非常可行的。目前，很多人很難準確預測市場的一些復甦情況。但我們有專門的團隊來管理這個問題並控制這個問題，我們感覺很好，我們可以將球推進到我們設定的目標。

And just to give a little more clarity in terms of what Tony said, in most companies that were buying electronic components during the very severe supply chain problems, we had to enter into a variety of agreements to guarantee supply. And as you guys have heard in our past earnings call, I think we did a very, very good job of being able to do that as we were moving through probably one of the worst supply chain periods that anybody's experience in 50 years. So -- but we know what it is. I think we know how to manage it. It is tied to our managing that as well as the market beginning to recover.

為了更清楚地說明托尼所說的情況，大多數在供應鏈問題非常嚴重的情況下購買電子元件的公司，我們必須簽訂各種協議來保證供應。正如你們在我們過去的財報電話會議中聽到的那樣，我認為我們在做到這一點方面做得非常非常好，因為我們正在經歷可能是50 年來任何人都經歷過的最糟糕的供應鏈時期之一。所以——但我們知道它是什麼。我想我們知道如何管理它。這與我們的管理以及市場的開始復蘇息息相關。

I guess one other thing I should say, since I focused the answer on P&S, and we should address it globally. ADI runs inventory in the low 60s days range. It did spike up in Q1 of this year. It since kind of come back down pretty close to where we ultimately expect it to be in the low 60s. And that's a balance for a distributor between how much inventory they want to carry, the commitments they want to make in terms of on-time delivery and that sort of thing to their customers. And we've spent a fair bit of time talking about where we want inventory levels to be vis-à-vis our service levels and our objectives with our customers. And that level, which we're getting close to today, is pretty much where we're going to -- where we think we're going to stay.

我想我應該說另一件事，因為我把答案集中在 P&S 上，我們應該在全球範圍內解決這個問題。 ADI 的庫存維持在 60 多天的範圍內。它確實在今年第一季度飆升。此後，它已經回落到非常接近我們最終預期的 60 左右的水平。對於經銷商來說，這就是他們想要攜帶的庫存量、他們想要在按時交貨方面做出的承諾以及對客戶的此類承諾之間的平衡。我們花了相當多的時間討論我們希望庫存水平與我們的服務水平和我們與客戶的目標相一致。我們今天正在接近的水平，幾乎就是我們將要達到的水平——我們認為我們將保持的水平。

They've solved also for not all, but most of their supply chain issues with some of their primary suppliers. They saw a few lingering ones, but it's much better than it was.

他們還解決了與一些主要供應商的供應鏈問題，但並非全部，而是大部分。他們看到了一些揮之不去的東西，但比以前好多了。

But there's -- we feel like there's potential $150 million of cash that can be released from P&S inventory as we get down to that 70-day level.

但我們認為，當我們降至 70 天的水平時，P&S 庫存可能會釋放 1.5 億美元的現金。

Exactly.

確切地。

Great. And then just one quick follow-up question. I know we're seeing the benefit of the pricing actions taken in prior quarters. And you guys talked about some further cost actions as we look to the rest of the year. But how should we think about additional pricing power as we look into the back half of the year? Is there any room there? Or do you kind of expect these levels to hold?

偉大的。然後是一個快速的後續問題。我知道我們看到了前幾個季度採取的定價行動的好處。當我們展望今年剩餘時間時，你們談到了一些進一步的成本行動。但是，當我們展望今年下半年時，我們應該如何考慮額外的定價能力呢？那裡還有房間嗎？或者您預計這些水平會保持不變嗎？

Well, I guess the good news is we have seen pricing hold by and large, which we expected, but that's definitely been the case. In terms of additional pricing actions, it's going to be pretty limited. Obviously, we have soft volumes. The market dynamics of the inflationary pressure that drove a lot of price increases have abated. So our outlook doesn't contemplate meaningful additional price action at this point.

好吧，我想好消息是我們已經看到定價基本上保持不變，這是我們所期望的，但事實確實如此。就額外的定價行動而言，它將非常有限。顯然，我們的銷量疲軟。推動價格大幅上漲的通脹壓力的市場動力已經減弱。因此，我們的前景目前並未考慮有意義的額外價格行動。

Your next question comes from the line of Brett Kearney with Gabelli Funds.

您的下一個問題來自 Gabelli Funds 的 Brett Kearney。

First Alert was a strong point in the quarter. Just curious if you can provide more color on some of the initiatives you've been executing there, deeper penetration of the builder channel and also maybe a potential for broader pull through other parts of the residual portfolio into that channel over time.

First Alert 是本季度的一大亮點。只是好奇您是否可以為您在那裡執行的一些計劃提供更多的信息，對建築商渠道的更深入滲透，以及隨著時間的推移，也許還有可能​​將剩餘投資組合的其他部分更廣泛地拉入該渠道。

It's a great question. And you're right, we've had some really nice wins with the -- in the R&C channel with First Alert. We've added several exclusive agreements with pretty meaningful homebuilders, and that's added to our content in R&C. It went up about 15% in the quarter. And there's real momentum there. There's definitely more to go with respect to First Alert.

這是一個很好的問題。你是對的，我們在 R&C 頻道的 First Alert 中取得了一些非常好的勝利。我們與相當有意義的住宅建築商簽訂了幾項獨家協議，這些協議已添加到我們的 R&C 內容中。本季度上漲約 15%。那裡有真正的動力。關於“第一警報”肯定還有更多的事情要做。

But your question about pull-through is super important because those First Alert products gave us entree and sort of a right to engage with the homebuilding community in a broader and deeper way. And I would say we are just underway with some of the momentum that would be related to that. It's given us an entree. Much in the same way as it has in retail where we were present in retail, we're pretty good, we thought, at retail, but they were at a different level, and it's really been a benefit.

但你關於拉通的問題非常重要，因為這些 First Alert 產品為我們提供了以更廣泛、更深入的方式參與住宅建築社區的入口和權利。我想說的是，我們剛剛開始出現一些與此相關的勢頭。它給了我們一道主菜。就像我們在零售業一樣，我們認為，在零售業方面我們做得很好，但他們處於不同的水平，這確實是一個好處。

And I would agree, I'd add a couple of things. That has increased our content with that addition and the fact of our brand -- you've heard us talk about our brand ambassador program that deals a lot with the RNC market as well as other places for the RNC in particular. And so new wins have been able to be generated there with the expansion of First Alert products with that. So it's really got some great pull-through as well as we continue to expand our total ecosystem and what we can offer as a part of the content. We can tie things in with smoke and CO, and then it gives us, from a technology standpoint, other opportunities of what we can add to products as we move forward.

我同意，我會補充一些內容。這增加了我們的內容以及我們品牌的事實——您已經聽到我們談論我們的品牌大使計劃，該計劃涉及 RNC 市場以及特別是 RNC 的其他地方。因此，隨著 First Alert 產品的擴展，新的勝利已經能夠在那裡產生。因此，它確實得到了一些巨大的推動力，並且我們繼續擴展我們的整個生態系統以及我們可以作為內容的一部分提供的內容。我們可以將事物與煙霧和二氧化碳聯繫起來，然後從技術的角度來看，它為我們提供了在我們前進的過程中可以添加到產品中的其他機會。

And operator, if I may, apparently, we answered an unasked question by Maya when we were talking about our inventory levels. I think the question was really on channel inventory and when we would see the channel inventory levels begin to normalize. And I would tell you that our outlook -- similar to what I said with respect to our own inventory, our outlook for -- our expectation is that channel inventory does not go down meaningfully in Q3. It's a little hard to tell what's going to happen in Q4, but you had meaningful declines in sell-through, which has -- even though dollar inventories may be coming down a little bit, the days are going up because the sell-through and the volumes are still negative. It's going to take a point for that to turn before we're going to see -- we'll have to see the sell-through go positive and then the sort of work down to inventory levels that they feel they want to target before we actually start to see our sell-through -- our sell-in improve.

操作員，如果可以的話，顯然，我們在談論庫存水平時回答了瑪雅人未提出的問題。我認為問題實際上在於渠道庫存以及我們何時會看到渠道庫存水平開始正常化。我想告訴你，我們的前景 - 類似於我對我們自己的庫存所說的，我們的預期 - 我們的預期是渠道庫存在第三季度不會大幅下降。很難說第四季度會發生什麼，但銷售量明顯下降，儘管美元庫存可能會略有下降，但天數正在增加，因為銷售量和成交量仍然為負。在我們看到之前，這種情況需要一個轉折點——我們必須看到銷售量轉為正數，然後在我們之前將工作降低到他們認為想要達到的目標庫存水平。實際上我們開始看到我們的銷售量——我們的銷售量有所改善。

And back on with Frank. Frank, did we fully answer your question there about First Alert?

和弗蘭克一起回來。弗蘭克，我們是否完全回答了您關於“第一警報”的問題？

There are no further questions at this time. I will now turn the call back to Mr. Jason Willey.

目前沒有其他問題。現在我將把電話轉回賈森·威利先生。

I thank everyone for their participation today, and we look forward to speaking with you in the coming days and months. Have a good rest of your day. Thank you very much.

我感謝大家今天的參與，我們期待在未來幾天和幾個月內與您交談。祝你這一天好好休息。非常感謝。

Ladies and gentlemen, thank you for participating. This concludes today's conference call. You may now disconnect.

女士們、先生們，感謝您的參與。今天的電話會議到此結束。您現在可以斷開連接。