Construction Partners Inc (ROAD) 2023 Q4 法說會逐字稿

Greetings. Welcome to the Construction Partners Inc., fourth quarter earnings conference call. (Operator Instructions) (technical difficulty) this conference is being recorded.

問候。歡迎參加 Construction Partners Inc. 第四季財報電話會議。 （操作員指示）（技術難度）本次會議正在錄製中。

It is now my pleasure to introduce your host, Rick Black, Investor Relations. Thank you, Rick, you may begin.

現在我很高興向您介紹主持人，投資者關係部門的里克·布萊克（Rick Black）。謝謝你，瑞克，你可以開始了。

Thank you, operator. And good morning, everyone. We appreciate you joining us for the Construction Partners conference call to review fourth quarter and year end results for fiscal 2023. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the Investor Relations section of constructionpartners.net.

謝謝你，接線生。大家早安。我們感謝您參加 Construction Partners 電話會議，回顧 2023 財年第四季度和年終業績。本次電話會議也進行了網絡直播，可以透過 ConstructionPartners 投資者關係部分的活動和演示頁面上的音頻鏈接進行收聽。網。

Information recorded on this call speaks only as of today, November 29, 2023. So please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading.

本次電話會議記錄的資訊僅截至今天（2023 年 11 月 29 日）。因此請注意，自任何重播或文字記錄閱讀之日起，任何時間敏感的資訊可能不再準確。

I would also like to remind you that the statements made in today's discussion that are not historical facts, including statements of expectations for future events or future financial performance are considered forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

我還想提醒您，今天的討論中所做的非歷史事實的陳述，包括對未來事件或未來財務業績的預期的陳述，均被視為根據私人證券訴訟改革的安全港條款做出的前瞻性陳述1995 年法案。

We will be making forward-looking statements as part of today's call that by their nature are uncertain and outside of the company's control. Actual results may differ materially. Please refer to our earnings press release for our disclosures on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission.

作為今天電話會議的一部分，我們將做出前瞻性聲明，這些聲明本質上是不確定的，並且不在公司的控制範圍內。實際結果可能存在重大差異。請參閱我們的收益新聞稿，以了解我們對前瞻性聲明的揭露。這些因素以及其他風險和不確定性在該公司向美國證券交易委員會提交的文件中進行了詳細描述。

Management will also refer to non-GAAP measures, including adjusted EBITDA, reconciliations to the nearest GAAP measures can be found at the end of our earnings release. Construction Partners assumes no obligation to publicly update or revise any forward-looking statements.

管理層還將參考非 GAAP 衡量標準，包括調整後的 EBITDA，與最接近的 GAAP 衡量標準的對帳可在我們的收益發布結束時找到。 Construction Partners 不承擔公開更新或修改任何前瞻性聲明的義務。

And now I would like to turn the call over to Construction Partners' CEO, Jule Smith. Jule?

現在我想將電話轉給 Construction Partners 的執行長 Jule Smith。朱爾？

Thank you, Rick, and good morning, everyone. With me on the call today are Greg Hoffman, our Chief Financial Officer, and Ned Fleming, our Executive Chairman. I'll begin with an overview of the business, followed by Greg reviewing our financials in more detail.

謝謝你，瑞克，大家早安。今天與我一起參加電話會議的是我們的財務長 Greg Hoffman 和我們的執行主席 Ned Fleming。我將首先概述業務，然後格雷格更詳細地審查我們的財務狀況。

We finished the year with a strong quarter that drove substantial year-over-year growth for both the fourth quarter and the year. Fiscal 2023 revenue was up 20% year over year, and adjusted EBITDA was up 57% and net income was up over 129% and consistent with our goal at the beginning of the year to return to double digit margins, we achieved a full year adjusted EBITDA margin of 11.1%.

我們以強勁的季度結束了這一年，推動了第四季度和全年的同比大幅增長。 2023 財年營收年增 20%，調整後 EBITDA 成長 57%，淨利成長超過 129%，與我們年初恢復兩位數利潤率的目標一致，我們實現了全年調整後利潤EBITDA 利潤率為11.1% 。

We also returned to the normal CPI business model of generating strong cash flow. We ended the year with cash flow from operations of $157 million and lowered our leverage ratio while continuing to drive both organic and acquisitive growth throughout the year.

我們也回到了產生強勁現金流的正常CPI業務模式。年底，我們的營運現金流為 1.57 億美元，並降低了槓桿率，同時繼續推動全年的有機成長和收購成長。

Today, we are reporting a record backlog of $1.6 billion. This is evidence that the demand environment is greater than at any time in our past, supported by healthy public funding programs as well as strong commercial markets throughout our six southeastern states, and in regard to that IIJA.

今天，我們報告積壓金額達到創紀錄的 16 億美元。這證明，在健康的公共融資計劃以及整個東南部六個州強大的商業市場以及 IIJA 的支持下，需求環境比過去任何時候都大。

While the bill passed three years ago and the funding only began flowing to the states over the past two years with construction project work starting in the past year. We are still in the early innings on the construction side of this generational investment in our nation's infrastructure.

雖然該法案三年前通過，資金在過去兩年才開始流向各州，建設計畫工作於去年開始。我們國家基礎設施的這一代投資仍處於建設的早期階段。

In the southeast, our states are growing and they remain focused on maintaining and improving the quality of their roads as well as increasing capacity to handle the significant migration to the Southeastern United States.

在東南部，我們的各州正在發展，他們仍然專注於維持和提高道路質量，以及提高處理美國東南部大量移民的能力。

Both of these types of projects are in the sweet spot for CPI's operational capabilities, along with other types of projects such as airports, ports and rail lines. After decades of falling behind and neglecting infrastructure maintenance needs, we believe that IIJA serves as a downpayment on the maintenance and new construction needed to support our country's infrastructure. After this initial down-payment, there will be remain a great deal of work needed in future years beyond the IIJA.

這兩類項目以及機場、港口和鐵路等其他類型的項目都處於 CPI 營運能力的最佳位置。經過數十年的落後和忽視基礎設施維護需求後，我們認為 IIJA 可以作為支援我國基礎設施所需的維護和新建工程的首期付款。在支付了最初的首期付款後，除 IIJA 之外，未來幾年還需要進行大量工作。

In addition, several states we operate in such as Tennessee, South Carolina, North Carolina, and Florida have also recently passed additional supplemental funding plans on top of their existing funding mechanisms to trying to keep pace with their rapid growth and the needs of their states.

此外，我們開展業務的幾個州，例如田納西州、南卡羅來納州、北卡羅來納州和佛羅裡達州，最近也在其現有融資機制的基礎上通過了額外的補充融資計劃，以努力跟上其快速成長的步伐和各州的需求。

Turning now to CPI strategic growth model, subsequent to the end of our fiscal year of September 30, we've completed two strategic acquisitions that enabled us to enter new growth markets and strengthen our market share in existing ones.

現在轉向 CPI 策略成長模型，在 9 月 30 日的財政年度結束後，我們完成了兩項策略性收購，使我們能夠進入新的成長市場並加強我們在現有市場的市場份額。

First, on October 2, we expanded operations in the upstate area of South Carolina by acquiring Hubbard Paving & Grading in Walhalla. The acquisition is hot-mix asphalt plant and related construction operations to our South Carolina platform company King Asphalt and expand that service market westward in the upstate region.

首先，10 月 2 日，我們收購了 Walhalla 的 Hubbard Paving & Grading 公司，擴大了在南卡羅來納州北部地區的業務。此次收購是為我們南卡羅來納州平台公司 King Asphalt 提供熱拌瀝青廠和相關建築業務，並將該服務市場向西擴展至北部地區。

The second acquisition we announced on November first was the Reeves construction assets in the Charlotte Rockhill area that added three hot-mix asphalt plants and related construction operations in Concord, North Carolina, and Rock Hill and McConnell, South Carolina. We entered the Charlotte market last year through our acquisition of Fairview corporation in the upstate region of South Carolina two years ago through acquisition of King as well in both areas. We continue to experience a strong economic climate, favorable demographic trends and other tailwinds supporting the need for infrastructure services.

我們在11 月宣布的第二項收購是夏洛特羅克希爾地區的Reeves 建築資產，該資產在北卡羅來納州康科德以及南卡羅來納州羅克希爾和麥康奈爾增加了三個熱拌瀝青廠和相關建築業務。去年，我們透過收購南卡羅來納州北部地區的 Fairview 公司進入了夏洛特市場，兩年前，我們也收購了這兩個地區的 King。我們持續經歷強勁的經濟環境、有利的人口趨勢和其他支持基礎設施服務需求的有利因素。

As we move into a new year, we continue to have numerous conversations with potential sellers both inside and outside of our current states. And we remain patient and focused on finding the best strategic acquisitions that expand our footprint and grow relative market share. We believe CPI has seen as the buyer of choice for many owners in the southeast through our reputation for treating sellers fairly providing career opportunities for their employees and our track record of successfully integrating and growing companies.

當我們進入新的一年時，我們繼續與目前州內外的潛在賣家進行大量對話。我們保持耐心，專注於尋找最佳的策略性收購，以擴大我們的足跡並增加相對市場份額。我們相信，CPI 已成為東南部許多業主的首選買家，因為我們在公平對待賣家、為其員工提供職業機會方面享有盛譽，而且我們在成功整合和發展公司方面擁有良好的記錄。

Last month, we were pleased to host our first-ever Analyst Day in New York. And as we said then the big news for CPI is there's no new news. Our plan is to continue to execute on the same strategy. The company was founded on to capitalize on the substantial need to invest in infrastructure in the growing Sunbelt region of the US.

上個月，我們很高興在紐約舉辦了第一屆分析師日活動。正如我們所說，CPI 的重大新聞是沒有新消息。我們的計劃是繼續執行相同的策略。該公司的成立是為了利用美國不斷發展的陽光地帶地區對基礎設施投資的巨大需求。

Analyst Day allowed us to showcase our unique culture at CPI. as a family of companies and to highlight our operating company precedence. They are the industry leaders that drive CPI's differentiated strategy of operating in distinct local markets with local workforces and generating stable recurring revenue from repeat customers while continuing to build smaller size projects with lower risk profiles and higher margins.

分析師日讓我們能夠在 CPI 上展示我們獨特的文化。作為一個公司家族，並強調我們經營公司的優先地位。他們是行業領導者，推動 CPI 實施差異化策略，利用當地勞動力在不同的當地市場開展業務，從回頭客那裡產生穩定的經常性收入，同時繼續建立風險較低、利潤率較高的小型專案。

Analyst Day also served as an opportunity to introduce our FY24 outlook as part of our five-year strategic plan that we call Roadmap 2027. This plan outlook outlines our growth targets that represent annual revenue growth of 15% to 20% and EBITDA margins in the range of 13% to 14% by 2027. Our topline growth strategy will continue to prioritize organic growth in our current markets as well as finding opportunities for greenfielding facilities and adjacent markets, and finally, our third growth lever of strategic acquisitions.

分析師日還提供了一個介紹我們2024 財年展望的機會，作為我們稱為2027 年路線圖的五年戰略計劃的一部分。該計劃展望概述了我們的增長目標，即年收入增長15% 至20 % 以及EBITDA 利潤率到2027 年，成長率將達到13% 至14%。我們的營收成長策略將繼續優先考慮當前市場的有機成長，並尋找新建設施和鄰近市場的機會，最後，我們的第三個成長槓桿是策略性收購。

Margin expansion also has three levers. First, by building better local markets with increased market share as the number one or two player in each of our local markets and improving our market intelligence. Secondly, we want to use vertical integration to continue to gain more margin along the value chain on materials and services. And finally, as our business continues to grow, there will be additional benefits of scale that will steadily contribute to margin expansion.

利潤擴張也有三個槓桿。首先，透過建立更好的當地市場，增加市場份額，成為每個當地市場的第一或第二位參與者，並提高我們的市場情報。其次，我們希望利用垂直整合繼續在材料和服務價值鏈上獲得更多利潤。最後，隨著我們業務的持續成長，規模經濟將帶來額外的好處，這將穩定地促進利潤率的擴大。

Also crucial to our strategic plan is further widening a competitive advantage to our workforce by building on our strong organizational culture as a family of companies and providing superior benefits career opportunities which attract and retain the best construction professionals. At CPI, we're dedicated to building better lives and to building the infrastructure that keeps our communities connected.

對於我們的策略計畫來說，同樣重要的是，透過建立我們作為一個公司家族強大的組織文化，並提供吸引和留住最優秀建築專業人士的優越福利職業機會，進一步擴大我們員工隊伍的競爭優勢。在 CPI，我們致力於建立更美好的生活並建立使我們的社區保持聯繫的基礎設施。

As we wrap up a successful fiscal year, I'd like to thank our hard-working Board of Directors, many of whom have been serving as Director since the founding of the company 24 years ago. Their expertise and experience continued provide wise counsel to the company's leadership team.

在我們結束一個成功的財政年度之際，我要感謝辛勤工作的董事會，其中許多人自 24 年前公司成立以來一直擔任董事。他們的專業知識和經驗繼續為公司的領導團隊提供明智的建議。

I want to conclude by also thanking the more than 4,200 employees at CPI for their hard work and professionalism in delivering a strong fiscal year 2023 and being prepared for dynamic growth in our new fiscal year 2020. For most importantly, thank you for watching out for your teammates and keeping each other safe each and every day in our worksites. I'd now like to turn the call over to Greg.

最後，我還要感謝CPI 的4,200 多名員工的辛勤工作和專業精神，交付了強勁的2023 財年，並為我們新的2020 財年的強勁增長做好了準備。最重要的是，感謝你們的關注您的隊友，並在我們的工作場所每天確保彼此的安全。我現在想把電話轉給格雷格。

Thank you, Jule, and good morning, everyone. I'll begin with a review of our key performance metrics for the fiscal year. Before discussing our outlook for fiscal 2024. Revenue was $1.56 billion, an increase of 20% compared to last year. The mix of our total revenue growth for the year was 8.7% organic revenue and 11.4% from recent acquisitions.

謝謝朱爾，大家早安。我將先回顧本財年的關鍵績效指標。在討論我們對 2024 財年的展望之前。營收為 15.6 億美元，比去年成長 20%。我們今年的總收入成長為 8.7% 的有機收入和 11.4% 來自最近的收購。

During the final quarter of the fiscal year, the weather across our states was better than seasonal averages and compared favorably to the fourth quarter last year. I'd also point out that the liquid asphalt index reimbursements we received this year. The fourth quarter were much lower than last year as liquid asphalt has trended down for most of the year.

在本財年最後一個季度，我們各州的天氣好於季節性平均水平，與去年第四季相比也更好。我還想指出，我們今年收到的液體瀝青指數補償。由於液體瀝青在今年大部分時間呈現下降趨勢，第四季的產量遠低於去年。

Liquid asphalt prices were relatively flat in fiscal 2023. Consequently, we received $1.3 million for liquid asphalt index reimbursements in Q4 2023 compared to $10.7 million in Q4 last year. Excluding the impact of these reimbursements, the company's organic growth rate would be 9.6% and the overall revenue growth would be 21%.

2023 財年液體瀝青價格相對持平。因此，我們在 2023 年第四季收到了 130 萬美元的液體瀝青指數補償，而去年第四季為 1,070 萬美元。剔除這些報銷的影響，公司的有機成長率將為9.6%，整體營收成長率將為21%。

Gross profit in fiscal 2023 was $196.4 million, an increase of approximately 41% compared to last year. As a percentage of total revenues. Gross profit was 12.6% in fiscal '23 compared to 10.7% last year. General and administrative expenses as a percentage of total revenue in fiscal 2023 declined to 8.1% compared to 8.3% last year. Net income was $49 million, an increase of 129% compared to $21.4 million last year.

2023財年毛利為1.964億美元，較去年成長約41%。佔總收入的百分比。 23 財年的毛利為 12.6%，去年為 10.7%。 2023 財年一般及管理費用佔總收入的百分比從去年的 8.3% 下降至 8.1%。淨利潤為 4,900 萬美元，比去年的 2,140 萬美元成長 129%。

Adjusted EBITDA was $174.1 million, an increase of 57% compared to last year. Adjusted EBITDA margin for the year was 11.1% compared to 8.5% in fiscal 2022. You can find GAAP to non-GAAP reconciliations of net income and adjusted EBITDA financial measures at the end of today's earnings release. In addition, as Jule mentioned, we are reporting a record project backlog of $1.6 billion at September 30, 2023.

調整後 EBITDA 為 1.741 億美元，較去年成長 57%。本年度調整後 EBITDA 利潤率為 11.1%，而 2022 財年為 8.5%。您可以在今天的收益發布結束時找到 GAAP 與非 GAAP 淨利潤和調整後 EBITDA 財務指標的調整表。此外，正如 Jule 所提到的，我們報告稱，截至 2023 年 9 月 30 日，專案積壓金額達到創紀錄的 16 億美元。

Turning now to the balance sheet, we had $48.2 million of cash and cash equivalents and $222.1 million available under the credit facility net of a reduction for outstanding letters of credit. We have $283.8 million of principal outstanding under the term loan and $93.1 million outstanding under the revolving credit facility.

現在轉向資產負債表，我們擁有 4,820 萬美元的現金和現金等價物，扣除未償還信用證的減少後，信貸安排下的可用資金為 2.221 億美元。我們的定期貸款本金未償還金額為 2.838 億美元，循環信貸安排本金未償還金額為 9,310 萬美元。

The availability on our credit facility and cash generation will continue to provide flexibility and capacity to allow for potential near term acquisitions and high-value growth opportunities. As a reminder, the company entered into an interest rate swap agreement that fixes SOFR at 1.85%, which results in an interest rate on $300 million of term debt of 3.1%. This is a reduction of 50 basis points from [930 22]. The maturity date of this swap is June 30, 2027.

我們的信貸安排和現金產生將繼續提供靈活性和能力，以實現潛在的近期收購和高價值成長機會。提醒一下，該公司簽訂了一項利率互換協議，將 SOFR 固定為 1.85%，這導致 3 億美元的定期債務利率為 3.1%。這比 [930 22] 減少了 50 個基點。本次互換的到期日為2027年6月30日。

As of the end of the quarter, our debt to trailing 12 months EBITDA ratio was 1.72. As Jule mentioned, we also reduced our leverage year leverage ratio year over year from 2.78 while continuing to grow organically and acquisitively. Our expectation is the leverage ratio will maintain a range of 1.5 to 2.5 while continuing to add sustained profitable growth.

截至本季末，我們的債務與過去 12 個月 EBITDA 的比率為 1.72。正如 Jule 所提到的，我們也將槓桿率從 2.78 逐年降低，同時繼續自然成長和收購。我們的預期是槓桿率將維持在1.5至2.5的範圍，同時繼續增加持續的獲利成長。

Cash provided by operating activities was $157.2 million compared to the $16.5 million in fiscal 2022. Net capital expenditures for fiscal 2023 were $80.1 million, consisting of $97.8 million in capital purchases and $17.7 million of proceeds from the sale of property, plant and equipment. We expect net capital expenditures for fiscal 2024 to be in the range of $90 million to $95 million. This includes maintenance CapEx of approximately 3.25% of revenue, with the remaining amount invested in high-return growth initiatives.

經營活動提供的現金為1.572 億美元，而2022 財年為1,650 萬美元。2023 財年的淨資本支出為8,010 萬美元，其中包括9,780 萬美元的資本採購和1,770 萬美元的出售財產、廠房和設備收益。我們預計 2024 財年的淨資本支出將在 9,000 萬美元至 9,500 萬美元之間。這包括約佔收入 3.25% 的維護資本支出，其餘金額則投資於高回報成長計劃。

Today, we are maintaining the fiscal year 2024 outlook that was introduced at our annual analyst day event last month on October 4, 2023. We expect revenue in the range of $1.75 billion to $1.825 billion, net income in the range of $63 million to $70 million and adjusted EBITDA in the range of $197 million to $219 million, which reflects adjusted EBITDA margin in the range of 11.3% to 12%.

今天，我們維持上個月2023 年10 月4 日年度分析師日活動上介紹的2024 財年展望。我們預計營收在17.5 億美元至18.25 億美元之間，淨利潤在6,300 萬美元至70 美元之間百萬美元，調整後 EBITDA 在 1.97 億美元至 2.19 億美元之間，這反映了調整後 EBITDA 利潤率在 11.3% 至 12% 之間。

And with that, we are now ready to take your questions. Operator?

至此，我們現在準備好回答您的問題了。操作員？

(Operator Instructions) Kathryn Thompson, Thompson Research Group.

（操作員說明）Kathryn Thompson，湯普森研究小組。

Hey, good morning. This is actually Brian Biros for Kathryn. Thank you for taking my questions.

嗨，早安。這實際上是凱瑟琳的布萊恩·比羅斯。感謝您回答我的問題。

First on the EBITDA guidance, top end gets back to 12%. That'd be great. Low ends more about 20 basis points off of where you ended the current year. Can you just touch on the low end scenario there and what are the building blocks to get to that kind of 20 basis point margin growth?

首先，根據 EBITDA 指引，上限回到 12%。那簡直太好了。低端較本年末低約 20 個基點。您能否談談低端場景以及實現 20 個基點利潤率成長的基石是什麼？

Yeah, Brian, in our guidance and in our Roadmap 2027 we talked about last month at the Analyst Day, we expect to have 50 to 75 basis points of margin improvement each year, and that's what our Roadmap 2027 calls for. And but when we give guidance we give a range right to encompass different scenarios.

是的，布萊恩，在我們的指導和2027 年路線圖中，我們在上個月的分析師日談到，我們預計每年的利潤率將提高50 到75 個基點，這就是我們的2027 年路線圖所要求的。但當我們提供指導時，我們會給予一個涵蓋不同場景的權利範圍。

But our guidance on that we give we assume normal weather, a stable economy and some good execution. And so we're just getting the year started. And as we go through and see how the year is going, we'll update that guidance. And as you saw last year, we tightened it and raise it accordingly.

但我們給的指導是假設天氣正常、經濟穩定且執行良好。所以我們才剛開始新的一年。當我們回顧這一年的進展時，我們將更新該指南。正如你去年所看到的，我們收緊了它並相應地提高了它。

Thank you. Follow up just then on the mix between public and private basis, the product is mentioned in the call, even the private side, both good tailwinds going into the next year and most multiyear tailwinds. Do you see the the mix between the two changing at all going forward?

謝謝。就在那時，在公共和私人基礎上的混合上，電話中提到了該產品，甚至是私人方面，這都是明年的良好順風和大多數多年的順風。您認為兩者之間的混合未來會改變嗎？

And you've had strength between the two in a little bit different public, maybe a little bit stronger, but you had bigger in good states in the Southeast that are seeing good trends on the private side, too. So just wondering how that, that mix shift looks for you guys, if if any mix shift going forward? Thank you.

兩者之間的實力在稍微不同的公共領域，也許更強一點，但在東南部的好州，你們也有更大的實力，這些州在私人方面也看到了良好的趨勢。所以只是想知道，這種混合轉變對你們來說怎麼樣，如果未來有混合轉變的話？謝謝。

Yes, sure, Brian. Yes, on actually, I think what you'll see we look at our filing that the mix has changed a little bit in 2023 overall from basically 60, 40 in prior years to roughly 63 public, 37 private in 2023.

是的，當然，布萊恩。是的，實際上，我想你會看到我們的文件顯示，2023 年的總體結構發生了一些變化，從前幾年的60 個、40 個變為2023 年的大約63 個公共機構、37 個私人機構。

So I think that's a that shows quite a bit of demand in the public environment, both both state and federal levels, as we've discussed and Joel discussed, and so that number could go up some potentially in the public side based on what the what the demand provides in the marketplace. But I think we're comfortable with that mix going forward.

因此，我認為，正如我們和喬爾討論的那樣，這在州和聯邦層面的公共環境中顯示出相當多的需求，因此，根據公共方面的情況，這個數字可能會有所上升。市場上的需求提供什麼。但我認為我們對未來的這種組合感到滿意。

Michael Feniger, Bank of America.

麥可費尼格，美國銀行。

Hi, everyone. Thanks for taking my question. Just following up on on the conversation between public and private. And I'm just curious on the on the private side, can you just tell us what your what you're actually seeing with activity there in recent months.

大家好。感謝您提出我的問題。只是跟進公共和私人之間的對話。我只是對私人方面感到好奇，您能否告訴我們近幾個月您實際看到的活動情況。

And do you still expect that that business on the private side, are you expecting that to be off in 2024, you know, high single digit. You guys have given great color on the public side, it seems like there's nice tailwinds there. I'm just curious, there's some concerns in the market around private see higher rates potentially impacting some some private construction activity. Just curious what you guys are seeing given your geographical footprint.

您是否仍預期私部門的業務會在 2024 年關閉，您知道，高個位數。你們在公眾方面做出了很好的貢獻，看起來那裡有很好的順風。我只是很好奇，市場上有一些關於私人的擔憂，認為更高的利率可能會影響一些私人建築活動。只是好奇你們看到了什麼，考慮到你們的地理足跡。

Michael, that's a great question and one that we've been getting in. It's something that I watch very closely the look at the bid sheet each week to see any and all of our local markets, what opportunities we're seeing and some of the surprising thing for us, this past year and especially the last six months of things on the commercial and private side have held up very well.

邁克爾，這是一個很好的問題，也是我們一直在討論的一個問題。我每週都會仔細觀察投標表，以了解我們所有的本地市場、我們看到的機會以及一些機會。對我們來說令人驚訝的是，過去的一年，尤其是過去六個月，商業和私人方面的情況都表現得非常好。

And as I said at our Analyst Day, the mix I think has evolved over the last year on housing is remained steady, even though that's not a big part of what we do. I think the fact that so many people are not selling their existing homes. But customers we do support from a residential standpoint from the builders are experiencing good demand for their products.

正如我在分析師日所說，我認為去年房屋市場的變化仍然保持穩定，儘管這並不是我們工作的重要組成部分。我認為事實上有很多人沒有出售他們現有的房屋。但我們從建築商的住宅角度提供支援的客戶對他們的產品有良好的需求。

But what we've really seen in addition to the residential migration to the Southeast is business migration to the southeast. And I think you've heard that from other customers or other companies in our industry. There's just a lot of heavy duty industrial demand where businesses are building manufacturing, facilities, labs and headquarters. And so that continues to just be a steady demand for the commercial environment. Ned, you want to weigh in on that?

但除了住宅向東南部的遷移之外，我們真正看到的是商業向東南部的遷移。我想您已經從我們行業的其他客戶或其他公司那裡聽說過這一點。企業正在建造製造、設施、實驗室和總部，因此存在大量重型工業需求。因此，這仍然是對商業環境的穩定需求。內德，你想對此發表意見嗎？

Michael, it's interesting. We're in a relative market share business. So in the markets that we compete in and we see this because Suntec's invest really in the sunbelt of the country. There's are continues to be a lot of growth. The demographic trends are driving that number one.

邁克爾，這很有趣。我們從事的是相對市場佔有率的業務。因此，在我們競爭的市場中，我們看到了這一點，因為 Suntec 確實投資於該國的陽光地帶。仍有大量成長。人口趨勢正在推動這一排名第一。

And number two, the business trends are driving that So in a relative market share business, what we're worried about is the growth in Raleigh-Durham, the growth in Huntsville, Alabama. And in each of these 70 plus distinct markets, we continue to see growth commercially residentially, everything.

第二，商業趨勢正在推動這一點。因此，在相對市場份額的業務中，我們擔心的是羅利-達勒姆的成長，以及阿拉巴馬州亨茨維爾的成長。在這 70 多個不同的市場中，我們繼續看到商業住宅等一切領域的成長。

In fact, in most of the places we're doing business, there is a housing shortage. There's a supply problem and that supply problem isn't going to get solved for somewhere between 6 and 10 years.

事實上，在我們開展業務的大多數地方，都存在著住房短缺的問題。有供應問題，而且供應問題在 6 到 10 年內都不會解決。

Good to hear guys. And just my follow-up. We're still seeing pretty high price increases on aggregates and rocks. And I'm curious what you're seeing all of in terms of your input and your costs, your competitors and basically how you feel the environment is to still pass that along.

很高興聽到大家的消息。這只是我的後續行動。我們仍然看到骨材和岩石的價格上漲相當高。我很好奇你在投入和成本方面看到了什麼，你的競爭對手以及基本上你對環境的看法是如何繼續傳遞這些訊息的。

I know you referenced what you're seeing out there in terms of the bids and the prices. Just curious how you're kind of thinking with some of the inflation, even though inflation is coming down but you're still seeing some high price increases in some of these more material thoughts on material inputs. Just curious how you feel like you guys and the competitors' ability to pass that along in '24? Thank you.

我知道您參考了您所看到的出價和價格。只是好奇你對某些通貨膨脹有何看法，儘管通貨膨脹正在下降，但你仍然看到一些關於物質投入的更物質的想法出現了一些高價格上漲。只是好奇你們覺得你們和競爭對手在 24 世紀傳遞這一點的能力如何？謝謝。

Well, Michael, CPI's -- our model is just to pass through the inputs to our bids. And so you're right, we are continuing to see price increases in our input costs. And we believe that construction inflation is going to continue to be higher than what you might see CPI or consumer inflation be because of the demand environment with the IIJA and just the commercial economies creating. So you're right, I think that will continue to have inflation. And we're just -- our model just passes that through to the customers.

好吧，邁克爾，CPI——我們的模型只是將輸入傳遞給我們的出價。所以你是對的，我們的投入成本持續上漲。我們認為，由於 IIJA 的需求環境和商業經濟的創造，建築業通膨將繼續高於 CPI 或消費者通膨。所以你是對的，我認為通貨膨脹將會繼續。我們只是——我們的模型只是將其傳遞給客戶。

Yeah, I would add to that, that part of the sharp spike in inflation that occurred 18 months ago, it is difficult for anybody to absorb, but whatever level of inflation is at as long as it's relatively stable, we can pass that along.

是的，我想補充一點，18個月前發生的通膨急劇上升的部分，任何人都很難吸收，但無論通膨水平如何，只要相對穩定，我們都可以傳遞下去。

Adam Thalhimer, Thompson Davis & Co.

亞當·塔爾希默、湯普森·戴維斯公司

Jules, are you fully pass the supply chain issues now?

Jules，你現在已經完全解決供應鏈問題了嗎？

I would say, Adam, the supply chain -- yes, I mean, is it like it was in 2019 or 2020? No. But I would say we've just gotten to where we can do business in a normal way in the new world. So it's not a it's not something we talk about at all now. So I guess the answer to your question is yes.

我會說，Adam，供應鏈——是的，我的意思是，它像 2019 年還是 2020 年那樣嗎？不。但我想說，我們剛剛到達可以在新世界以正常方式開展業務的階段。所以這不是我們現在談論的事情。所以我想你的問題的答案是肯定的。

Okay. I'm curious on the large project side where you guys would be part of a JV just to do the paving work? Are you seeing more of those types of opportunities with the IIJA?

好的。我很好奇在大型專案方面你們會加入合資企業只是為了做鋪路工作嗎？您是否在 IIJA 中看到了更多此類機會？

Well, you know, Adam, I was recently at a conference and I heard an industry economist break down the the use of the IIJA funds in the different states and regions. And I was really -- it was interesting to see and it's really encouraging for me that in the Southeast, most of the money for the IIJA funds are going either maintenance or capacity increase to existing infrastructure.

嗯，你知道，亞當，我最近在參加一個會議，我聽到一位行業經濟學家詳細分析了 IIJA 基金在不同州和地區的使用情況。我真的很高興看到，在東南部，IIJA 資金的大部分資金都用於現有基礎設施的維護或容量增加，這對我來說真的很鼓舞。

And so and that's exactly, as I said in my prepared remarks, that's exactly what CPI -- that's our specialty. And so you know, maybe in future years, there might be some bigger projects. But right now, we're seeing a lot of the states that we're in, use it to do maintenance and capacity increase and so that's up. That's what we're bidding on.

因此，正如我在準備好的發言中所說，這正是消費者物價指數（CPI）——這就是我們的專長。所以你知道，也許在未來幾年，可能會有一些更大的項目。但現在，我們看到我們所處的許多狀態都用它來進行維護和容量增加，所以就這樣了。這就是我們競標的內容。

And it sounds like that's what you prefer.

聽起來這就是你喜歡的。

Well, it's -- I mean, in certainly on larger projects, you know, we'll participate as a subcontractor as a JV partner. But you know, our specialties to do smaller projects with higher margins and so maintenance and capacity and widening of roads, those are the projects that are right now in our wheelhouse.

嗯，我的意思是，在更大的專案中，我們肯定會作為合資夥伴作為分包商參與。但你知道，我們的專長是從事利潤較高的小型項目，因此維護、容量和道路拓寬，這些都是我們目前正在處理的項目。

Great. And then, Greg, just real quick for you. The SG&A leverage was particularly strong in Q4. Was there anything unusual in there?

偉大的。然後，格雷格，你就快點吧。第四季的銷售管理及行政費用槓桿尤其強勁。裡面有什麼不尋常的地方嗎？

No, I think it's just a normal trend that we talked about about the 15, 20 basis points year over year. Of course, on the fourth quarter was certainly better than last year, 6.9%, I believe is what it was this year. So which is the normal normal trend, I think we're going to continue to see.

不，我認為我們談論的同比15、20個基點只是一個正常趨勢。當然，第四季肯定比去年好，6.9%，我相信今年也是這樣。這是正常的趨勢，我認為我們將繼續觀察。

Brian Russo, Sidoti & Company.

布萊恩·羅素 (Brian Russo)，Sidoti & Company。

Maybe you could just elaborate on the September backlog of $1.6 billion still showing a lot of resilience despite the DOT lettings, a seasonality, and just the overall on construction seasonality of the business. Just just curious how that triangulates to your reaffirmed 2024 guidance? Just any insight there would be great.

也許您可以詳細說明 9 月份 16 億美元的積壓訂單，儘管有 DOT 出租、季節性以及業務的整體建築季節性，但仍然顯示出很大的彈性。只是好奇這與您重申的 2024 年指導方針有何關係？任何見解都會很棒。

Brian, I'm glad you asked that. You know, our backlog has grown now for 12 straight quarters and you've heard me say this and also I want to I'm glad you gave me the opportunity to say it again, it is not a typical CPI for our backlog to go down sequentially, especially in the busy work season.

布萊恩，我很高興你這麼問。您知道，我們的積壓訂單現已連續 12 個季度增長，您已經聽到我這麼說了，我也想我很高興您給了我再說一遍的機會，這不是我們積壓訂單的典型 CPI。依次下降，尤其是在繁忙的工作季節。

And so at some point that's going to happen and that's not going to surprise us at all because the DOT lettings are not you know, in a steady state, they are coming at different times of the year and that we do work at different levels. We're seasonal business.

因此，在某個時候，這種情況將會發生，這根本不會讓我們感到驚訝，因為交通部的出租不是你知道的，在穩定的狀態下，它們會在一年中的不同時間到來，而且我們會在不同的層面上工作。我們是季節性生意。

I think the backlog being off at the level, it shows the demand that we have, but we've sold a large percentage of our capacity. And we've said, our next 12 month revenue is a lot of its own backlog and that gives us good visibility. But we can only we can only book so much of our capacity at any one time. So we feel good about our backlog. But at some point in time, it's going to go down sequentially and that's not going to be a thing that surprises us.

我認為積壓已達到一定水平，這表明我們有需求，但我們已經售出了很大一部分產能。我們已經說過，我們接下來 12 個月的收入中有很多是自己的積壓訂單，這給了我們很好的可見性。但我們每次只能預訂這麼多容量。所以我們對積壓的訂單感到滿意。但在某個時間點，它會依序下降，這不會是一件讓我們感到驚訝的事情。

Yes, Brian, I would say that we're still on 75% of the next 12 months' revenue is covered by backlog. That hasn't changed.

是的，Brian，我想說的是，我們未來 12 個月的收入中仍有 75% 由積壓訂單覆蓋。這一點沒有改變。

Okay, great. And you mentioned earlier about the business model and repeat customers. Could you possibly like quantify what percent of the overall business is considered recurring revenue? Is it just the public market of 63% or is the kind of that strong relationships you have on the commercial side? And what's all the economic development? Does that also create another level of recurring revenue for construction partners?

好的，太好了。您之前提到了商業模式和回頭客。您能否量化整個業務中被視為經常性收入的百分比？這僅僅是 63% 的公開市場還是您在商業方面擁有的那種牢固的關係？那麼經濟發展到底怎麼樣呢？這是否也為建築合作夥伴創造了另一個水準的經常性收入？

Yes, Brian, absolutely. So the public revenue, virtually all of that's repeat customers. But on the commercial side, a large part of that is repeat customers and long-standing relationships where we do work, whether it be in the Panhandle of Florida for St. Joe's or poultry corporation in Raleigh, North Carolina. There's just customers that you build relationships with and provide good service. And and those are repeat customers year after year.

是的，布萊恩，絕對是如此。因此，公共收入幾乎全部都是回頭客。但在商業方面，其中很大一部分是我們工作地點的回頭客和長期關係，無論是在佛羅裡達州狹長地帶的聖喬，還是在北卡羅來納州羅利的家禽公司。只有與您建立關係並提供優質服務的客戶。這些都是年復一年的回頭客。

And then just lastly on the CapEx for at $90 million, $95 million in 2024, is any of that growth CapEx earmarked for any specific projects at this point? Or is that still kind of being evaluated?

最後，關於 2024 年 9,000 萬美元、9,500 萬美元的資本支出，目前是否有任何成長資本支出指定用於任何特定項目？還是仍在評估中？

No, it is earmarked. We go through that process during our budget time. And so yeah, there was a process of evaluating various projects for future growth, and that has now been identified and put in the books, but we're not prepared to announce anything specifically at this time.

不，這是指定的。我們在預算時間內完成這個過程。所以，是的，有一個評估各種項目未來成長的過程，現在已經確定並記錄在案，但我們目前不准備具體宣布任何內容。

And Brian, I would just say Greg does a great job of leading that process. But that's that's just really just where we highlight organic growth. We want to prioritize organic growth. And so each of our local markets submits their initiatives for what they what they see is organic growth and that we fund the best initiatives there. And so that's up it's one of our growth levers, and that's the process that will make it happen.

布萊恩，我只想說格雷格在領導這個過程方面做得很好。但這正是我們強調有機成長的地方。我們希望優先考慮有機成長。因此，我們每個當地市場都提交了他們認為是有機成長的舉措，並且我們為當地最好的舉措提供資金。這就是我們的成長槓桿之一，這就是實現這一目標的過程。

(Operator Instructions) There are no further questions at this time. I would like to hand the conference back over to management for closing comments.

（操作員說明） 目前沒有其他問題。我想將會議交還給管理層以徵求結束意見。

I'd just like to thank everyone for joining us today. and we look forward to having a good fiscal year 2024. Thank you.

我只想感謝大家今天加入我們。我們期待 2024 年有一個美好的財年。謝謝。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。