Gibraltar Industries Inc (ROCK) 2023 Q2 法說會逐字稿

Greetings, and welcome to the Gibraltar Industries Second Quarter 2023 Financial Results Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加直布羅陀工業 2023 年第二季度財務業績電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the conference over to your host, Carolyn Capaccio with LHA. Please go ahead.

現在我想將會議交給主持人卡羅琳·卡帕喬 (Carolyn Capaccio) 和 LHA。請繼續。

Thank you, operator. Good morning, everyone, and thank you for joining us today. With me on the call is Bill Bosway, Gibraltar Industries Chairman, President and Chief Executive Officer; and Tim Murphy, Gibraltar's financial Officer.

謝謝你，接線員。大家早上好，感謝您今天加入我們。與我一起參加電話會議的是直布羅陀工業公司董事長、總裁兼首席執行官 Bill Bosway；和直布羅陀財務官蒂姆·墨菲。

The earnings press release that was issued this morning as well as the slide presentation that management will use during the call are both available in the Investors section of the company's website to gibraltar1.com. Gibraltar earnings press release and remarks contain non-GAAP financial measures. Tables of reconciliation of GAAP to adjusted financial measures can be found in the earnings press release that was issued today.

今天上午發布的收益新聞稿以及管理層將在電話會議期間使用的幻燈片演示文稿均可在該公司網站 gibraltar1.com 的投資者部分中獲取。直布羅陀收益新聞稿和言論包含非公認會計準則財務指標。公認會計原則與調整後的財務指標的調節表可以在今天發布的收益新聞稿中找到。

Also as noted on Slide 2 of the presentation, the earnings press release and slide presentation contain forward-looking statements with respect to future financial results. These statements are not guarantees of future performance and the company's actual results may differ materially from the anticipated events, performance or results expressed or implied by these forward-looking statements. Gibraltar advises you to read the risk factors detailed in its SEC filings, which can be accessed through the company's website.

另外，如演示文稿幻燈片 2 中所述，收益新聞稿和幻燈片演示文稿包含有關未來財務業績的前瞻性陳述。這些陳述不是對未來業績的保證，公司的實際結果可能與這些前瞻性陳述明示或暗示的預期事件、業績或結果存在重大差異。直布羅陀建議您閱讀其向美國證券交易委員會提交的文件中詳細說明的風險因素，這些文件可以通過該公司的網站訪問。

Now I'll turn over to -- turn the call over to Bill Bosway. Bill?

現在我將把電話轉給比爾·博斯威。賬單？

Thank you, Carolyn. Good morning, everyone, and thank you for joining today's call. We'll start with an overview of our second quarter results. Tim will then take you through our financial performance, and I'll walk you through our 2023 outlook, and then we'll open the call up for some questions.

謝謝你，卡羅琳。大家早上好，感謝您參加今天的電話會議。我們將首先概述第二季度的業績。然後，蒂姆將向您介紹我們的財務業績，我將向您介紹我們的 2023 年展望，然後我們將開始徵集一些問題。

So let's start on Slide 3, titled Second Quarter 2023 Results. We executed well in the quarter and building on solid performance momentum we created coming out of the first quarter. New bookings continued to improve and our backlog increased 15% sequentially and also turned positive versus prior year, up 1% at the end of the quarter.

讓我們從幻燈片 3 開始，標題為 2023 年第二季度業績。我們在本季度表現良好，並以第一季度創造的強勁業績勢頭為基礎。新訂單持續改善，我們的積壓訂單環比增加了 15%，並且與去年同期相比也出現正增長，季度末增加了 1%。

For the quarter, on an adjusted basis, operating income increased 18%, EPS increased 23% and free cash flow reached 20% of net sales. We continue to improve execution across the business as we accelerate more 80/20 and productivity initiatives, improve our service levels, launch new products, manage our price cost and optimize working capital.

本季度，經調整後，營業收入增長 18%，每股收益增長 23%，自由現金流達到淨銷售額的 20%。隨著我們加快更多 80/20 和生產力計劃、提高我們的服務水平、推出新產品、管理我們的價格成本並優化營運資本，我們將繼續提高整個業務的執行力。

Our full year revenue plan for modest growth remains intact. And as mentioned in our last earnings call, assumes revenue increasing in the second half. Our end markets have also evolved as expected and, in general, have solid momentum going into the second half. And here's just the current situation for each end market segment. Let me start with renewables.

我們適度增長的全年收入計劃保持不變。正如我們在上次財報電話會議中提到的，假設下半年收入增加。我們的終端市場也按照預期發展，總體而言，進入下半年勢頭強勁。這只是每個終端細分市場的當前情況。讓我從可再生能源開始。

Customer demand and project development activity continue to be strong. The industry is making steady progress with solar module importing through the UFLPA, and we expect this to continue in the second half as well. The industry still requires more module manufacturers to demonstrate consistency and success importing their panels. And our revenue plan assumes our customers will continue to see improvement with module supply.

客戶需求和項目開發活動繼續強勁。通過 UFLPA 進口太陽能組件，該行業正在穩步取得進展，我們預計下半年這種情況也將持續下去。該行業仍然需要更多的模塊製造商證明其面板進口的一致性和成功性。我們的收入計劃假設我們的客戶將繼續看到模塊供應的改善。

Customers have also been recently dealing with the permitting approval process. This seems to be mostly related to local government offices needing to ramp up capacity to support increasing project demand activity, and we expect this to improve in the second half and beyond as well. In our residential market, channel inventory rebalanced as expected and demand started to improve as seasonality for the market returned and normalized and customers began their restocking process. As anticipated, end market demand slowed significantly versus prior year but remained positive in the quarter. We continue to see positive point-of-sale results for our products with end customers and expect this to continue.

客戶最近也在處理許可審批流程。這似乎主要與地方政府辦公室需要提高能力以支持不斷增加的項目需求活動有關，我們預計這種情況在下半年及以後也會有所改善。在我們的住宅市場，渠道庫存如預期重新平衡，隨著市場季節性回歸和正常化以及客戶開始補貨過程，需求開始改善。正如預期的那樣，終端市場需求較上年大幅放緩，但本季度仍保持積極增長。我們繼續看到我們的產品在終端客戶中取得了積極的銷售結果，並預計這種情況將繼續下去。

On a macro basis, we expect the ongoing demand supply and balance for housing, single-family and multifamily as well as interest rates and the current U.S. economic outlook to continue playing an important role in the strength of the residential market in 2023 and beyond.

從宏觀角度來看，我們預計住房、單戶和多戶住宅的持續供需和平衡以及利率和當前的美國經濟前景將繼續對 2023 年及以後住宅市場的強勢發揮重要作用。

Switching to Agtech. The order pipeline and clothing activity remains very active for the produce market as long-standing commercial growers look to expand capacity to meet consumer demand for indoor grown produce. Growers are also focused on supporting increasing demand for additional varieties of fruits and vegetables, which tend to be developed and grown indoor as well.

轉向農業科技。由於長期商業種植者希望擴大產能以滿足消費者對室內種植農產品的需求，農產品市場的訂單渠道和服裝活動仍然非常活躍。種植者還致力於支持對其他水果和蔬菜品種不斷增長的需求，這些水果和蔬菜往往也在室內開發和種植。

We signed a large $30 million produce project in the quarter, which we will start designing and building in the second half. This $30 million project represents Phase 1 of the overall project, and it is the smaller of 2 phases. Once completed, we expect the second phase to begin shortly thereafter. The produce market activity is currently offsetting a slower commercial market, particularly in the retail and car wash structures businesses. We expect these businesses to start improving later in the year as customers have adjusted to the current interest rate environment and more clarity on their financing solutions and overall project returns and are seeing relatively positive end market demand.

我們在本季度簽署了一個價值 3000 萬美元的大型生產項目，我們將在下半年開始設計和建設。這個耗資 3000 萬美元的項目代表整個項目的第一階段，是兩期中較小的一個。一旦完成，我們預計第二階段將很快開始。目前，農產品市場活動正在抵消商業市場放緩的影響，尤其是零售和洗車建築業務。我們預計這些業務將在今年晚些時候開始改善，因為客戶已經適應了當前的利率環境，他們的融資解決方案和整體項目回報更加清晰，並且看到了相對積極的終端市場需求。

And finally, infrastructure. The infrastructure investment and Jobs Act continues to provide a strong tailwind for the market as well as good spending support visibility for state DOTs over the next 3 to 4 years. There is strong demand for our expansion joint systems and structural bearing solutions used for bridge applications and compression joint sealants and coatings for payment applications. Management expects end market demand to keep pace for the rest of 2023 and continue beyond this year.

最後是基礎設施。基礎設施投資和就業法案繼續為市場提供強大的推動力，並為州交通部未來 3 至 4 年提供良好的支出支持可見性。對我們用於橋樑應用的伸縮縫系統和結構軸承解決方案以及用於支付應用的壓接縫密封劑和塗料的需求強勁。管理層預計，終端市場需求將在 2023 年剩餘時間內保持增長，並持續到今年以後。

So to summarize, we delivered a strong second quarter and first half by executing our key initiatives and staying focused on delivering for our customers. Given our performance to date and our assumption, end markets will evolve as expected, we are raising our earnings guidance for the year, which we'll discuss in a few moments.

總而言之，通過執行關鍵舉措並專注於為客戶提供服務，我們在第二季度和上半年取得了強勁的業績。鑑於我們迄今為止的業績和我們的假設，終端市場將按預期發展，我們正在提高今年的盈利指引，我們將在稍後討論。

Now let's turn to Slide 4, and I'll give you an update on the solar module supply. As I mentioned, the solar panel supply is improving as more module suppliers gradually come up the UFLPA enforcement learning curve. Additional panel suppliers beyond the Tier 1 suppliers are now fully engaged with the U.S. Customs and Border Protection Agency learning the necessary requirements and steps for consistent importation success. However, the industry needs to see more progress with this process to effectively support current and future demand in the U.S. market. We believe the flow of imported panels will improve and be more consistent for our customers in the second half and generate positive momentum as we enter 2024.

現在讓我們轉向幻燈片 4，我將為您介紹太陽能組件供應的最新情況。正如我所提到的，隨著越來越多的組件供應商逐漸進入 UFLPA 執行學習曲線，太陽能電池板的供應正在改善。除了一級供應商之外，其他面板供應商現在正在與美國海關和邊境保護局充分接觸，了解持續成功進口的必要要求和步驟。然而，該行業需要看到這一過程取得更多進展，以有效支持美國市場當前和未來的需求。我們相信，下半年進口面板的流量將會改善，對我們的客戶來說更加一致，並在進入 2024 年時產生積極的勢頭。

As well, the industry continues to watch for the Department of Commerce's final ruling on antidumping and countervailing duties, which is now expected sometime in August. It is important to note that the DOC's preliminary ruling found 4 of the 8 panel suppliers based in Southeast Asia were not circumventing duties or dumping, and these suppliers can continue to export to the U.S. without penalty. Also, module suppliers with non-China wafer supply are not subject to duty either. The administration's executive order instructing the DOC to waive tariffs on all modules exported from Southeast Asia for 2 years will continue through June 2024 and may be reevaluated at that time.

此外，業界還在繼續關注商務部關於反傾銷和反補貼稅的最終裁決，目前預計將於 8 月份的某個時間做出裁決。值得注意的是，美國商務部的初步裁決發現，8家東南亞面板供應商中有4家沒有規避關稅或傾銷，這些供應商可以繼續向美國出口，而不會受到處罰。此外，供應非中國晶圓的組件供應商也無需繳納關稅。政府指示商務部免除從東南亞出口的所有組件關稅兩年的行政命令將持續到 2024 年 6 月，屆時可能會重新評估。

With that, let me turn it over to Tim for a review of our financial results.

接下來，讓我將其交給蒂姆來審查我們的財務業績。

Thanks, bill, and good morning, everyone. I'll take you through our consolidated and segment results, starting on Slide 5. Adjusted net sales were flat at $364 million, with organic growth in residential and infrastructure and the acquisition of Quality Aluminum Products, offsetting slower sales in the renewables and Agtech segments. Overall, sales were in line with expectations going into the quarter and our first half sales results are also consistent with full year sales plan.

謝謝，比爾，大家早上好。我將從幻燈片5 開始向您介紹我們的合併和分部業績。調整後的淨銷售額持平於3.64 億美元，住宅和基礎設施的有機增長以及優質鋁產品的收購抵消了可再生能源和農業科技領域銷售放緩的影響。總體而言，本季度的銷售符合預期，上半年銷售結果也與全年銷售計劃一致。

Backlog at quarter end was $412 million, up 1% versus the second quarter of 2022 and up 15% sequentially as the pace of business accelerated through the first half of the year as expected. Adjusted operating income and adjusted EBITDA dollars each increased 18% second quarter with adjusted EPS up 23%. Margin improvement in the quarter was driven by strong execution, price cost alignment in all segments, solid field operations, implementation of additional 80/20 initiatives, along with favorable business and product mix. Weighted average shares outstanding decreased 6% for the second quarter of 2022 to 30.7 million shares in the second quarter of 2022. I'll review our share repurchase program in a moment.

截至季度末，積壓訂單為 4.12 億美元，較 2022 年第二季度增長 1%，隨著上半年業務步伐如預期加快，環比增長 15%。第二季度調整後營業收入和調整後 EBITDA 美元分別增長 18%，調整後每股收益增長 23%。本季度利潤率的改善得益於強勁的執行力、所有細分市場的價格成本調整、紮實的現場運營、額外 80/20 計劃的實施以及有利的業務和產品組合。 2022 年第二季度加權平均已發行股票減少 6%，至 2022 年第二季度的 3070 萬股。我稍後將回顧一下我們的股票回購計劃。

Now let's read each segment starting with Slide 6, the Renewable segment. The decline in sales was driven by schedule changes, which impacted the timing of revenue recognition of active projects during the quarter. Scheduled changes were mainly related to module supply and local permitting delays. The permitting process is expected to improve as local government offices ramp capacity to meet increasing demand. The pace of new order and contracting activity continued to accelerate and new bookings more than doubled in the quarter. As a result, backlog increased 17% sequentially and is up 6% year-over-year.

現在讓我們從幻燈片 6（可再生能源部分）開始閱讀每個部分。銷售下降是由進度變化造成的，進度變化影響了本季度活躍項目的收入確認時間。計劃的變化主要與組件供應和當地許可延遲有關。隨著當地政府辦公室提高能力以滿足不斷增長的需求，預計許可程序將會得到改善。新訂單和合同活動的步伐繼續加快，本季度新預訂量增加了一倍多。因此，積壓訂單環比增加 17%，同比增加 6%。

As a reminder, our backlog consists only as signed contracts with deposits. We do not include purchase orders without a signed contract and deposit, MSAs without specific work orders or global agreements with customers in our new bookings or backlog. Segment profitability improved with adjusted operating and EBITDA margins of 11.7% and 14.8%, respectively, increasing 470 and 550 basis points versus prior year. Team executed well across the business, improving supply chain, material cost reduction, field operations and price cost alignment. Sequential margin improved 790 and 700 basis points, respectively. We expect to deliver improved sales and margin performance in the second half of the year, assuming modules supply improved further and permitting process capacity continues to accelerate.

提醒一下，我們的積壓訂單僅包含已簽署的帶有定金的合同。我們不會將沒有簽署合同和押金的採購訂單、沒有特定工作訂單的 MSA 或與客戶的全球協議包含在我們的新預訂或積壓訂單中。部門盈利能力有所改善，調整後營業利潤率和 EBITDA 利潤率分別為 11.7% 和 14.8%，比上年增加 470 和 550 個基點。團隊在整個業務領域表現良好，改善了供應鏈、降低了材料成本、現場運營和價格成本調整。連續利潤率分別提高了 790 和 700 個基點。假設組件供應進一步改善且許可工藝產能繼續加速，我們預計下半年的銷售和利潤表現將有所改善。

Lets move to Slide 7 to review our Residential segment. Segment sales increased 14% versus prior year with organic contributing over 1% and the acquisition of Quality Aluminum Products providing the remainder. Organic growth was driven by participation gains across the business and contributions for new customers, which more than offset the impact of prior quarter's market price adjustments in response to decreasing commodity prices and some remaining channel inventory right size.

讓我們轉到幻燈片 7 來回顧一下我們的住宅部分。部門銷售額與上年相比增長了 14%，其中有機貢獻超過 1%，而收購優質鋁產品則貢獻了剩餘部分。有機增長是由整個業務的參與度增長和對新客戶的貢獻推動的，這遠遠抵消了上一季度為應對商品價格下降和一些剩餘渠道庫存規模而進行的市場價格調整的影響。

Quality aluminum products performance delivered to our expectations. The residential end markets having returned to normal seasonality are building expected volumes in the second and third quarters. Channel inventory destocking appears to be complete and demand remains solid in our end markets. We continue to see opportunity to successfully gain additional market participation in 2023 as we have in recent years.

優質鋁產品的性能達到了我們的預期。住宅終端市場已恢復正常的季節性，預計第二季度和第三季度的交易量將增加。渠道庫存去庫存似乎已經完成，終端市場的需求依然強勁。我們繼續看到 2023 年有機會成功獲得更多市場參與，正如近年來我們所做的那樣。

Adjusted operating EBITDA margins of 19.3% and 20.5%, respectively, expanded 80 and 90 basis points as volume improved from last year, price cost was better aligned, we implemented additional 80/20 initiatives and product line mix is favorable. We expect these items to drive continued strength in segment margins during the second half of the year. QAPs market performance was in line with expectations and continues to improve profitability towards Gibraltar levels as the integration proceeds. And additionally, after quarter end, we completed the acquisition of a small $8.5 million revenue Utah based building accessories, manufacturing distributor for $10.4 million, a little less than 6x 2022 EBITDA. And this business will improve our market coverage and service levels in the North or West region, reduced logistics costs supporting the region and utilize an asset-light operating model, which we may also deploy to drive participation in other adjacent markets. We also continue to invest in and implement the common ERP system for the Residential segment. Common system will provide operating efficiency, speed and agility and scalability for more profitable growth.

調整後的EBITDA 營業利潤率分別為19.3% 和20.5%，由於銷量較去年有所改善、價格成本更加協調、我們實施了額外的80/20 計劃以及有利的產品線組合，分別擴大了80 和90個基點。我們預計這些項目將在今年下半年推動部門利潤率持續走強。 QAP 的市場表現符合預期，並且隨著整合的進行，盈利能力繼續提高至直布羅陀水平。此外，在季度末後，我們以 1,040 萬美元完成了對一家收入為 850 萬美元、總部位於猶他州的建築配件製造分銷商的收購，略低於 2022 年 EBITDA 的 6 倍。這項業務將提高我們在北部或西部地區的市場覆蓋率和服務水平，降低支持該地區的物流成本，並利用輕資產運營模式，我們也可能部署這種模式來推動其他鄰近市場的參與。我們還繼續投資和實施住宅領域的通用 ERP 系統。通用系統將提供運營效率、速度、敏捷性和可擴展性，以實現更多利潤增長。

Let's move to Slide 8 to review our AgTech segment. Adjusted net sales decreased 16.1% as the commercial business experience and customer delays and project starts. New orders in the Produce business helped increase backlog 16.2% sequentially, which is expected to drive improving sales in the second half of 2023. The project pipeline and [clothing] activity in this business remains robust. Segment adjusted operating EBITDA margin of 9.5% and 12.9%, respectively, an improvement of 280 and 350 basis points were driven by 80/20 actions, supply chain optimization initiatives and improvements in project management systems. We continue to expect margins to strengthen as volume improve . The exit of the processing equipment business resulted in a GAAP operating loss in the segment during the quarter and liquidation is essentially complete with only nominal costs remaining.

讓我們轉到幻燈片 8 來回顧一下我們的農業科技部分。由於商業業務經驗以及客戶延遲和項目啟動，調整後淨銷售額下降了 16.1%。農產品業務的新訂單幫助積壓訂單環比增加了 16.2%，預計將推動 2023 年下半年的銷售改善。該業務的項目管道和[服裝]活動仍然強勁。部門調整後的 EBITDA 利潤率分別為 9.5% 和 12.9%，在 80/20 行動、供應鏈優化舉措和項目管理系統改進的推動下分別提高了 280 和 350 個基點。我們繼續預計，隨著銷量的增加，利潤率將會增強。加工設備業務的退出導致該部門在本季度出現 GAAP 運營虧損，清算基本完成，只剩下名義成本。

Let's move to Slide 9 is our Infrastructure segment. Segment sales increased 12.6% driven by strong demand, participation gains and the positive impact of the infrastructure investment and [Jobs Act]. Momentum on orders continues with backlog increasing 46% year-over-year with state departments of transportation access federal funding and strong demand persists in both fabricated and nonfabricated product lines. This business performed very well during the first half of the year, and we expect continued strength for the remainder of the year.

讓我們轉到幻燈片 9 的基礎設施部分。由於強勁的需求、參與度的提高以及基礎設施投資和[就業法案]的積極影響，部門銷售額增長了 12.6%。訂單勢頭持續強勁，積壓訂單同比增長 46%，州交通部門獲得聯邦資金，並且製造和非製造產品線的強勁需求持續存在。該業務在上半年表現非常出色，我們預計今年剩餘時間將繼續保持強勁勢頭。

Second, adjusted operating income doubled and adjusted operating and EBITDA margins of 24.1% and 27.6%, respectively, improved 1,070 and 1,030 basis points driven by execution, 80/20 productivity, supply chain efficiency and product line mix. This team is executing very well, and we expect continued strength and profitability for the remainder of the year.

其次，在執行力、80/20 生產力、供應鏈效率和產品線組合的推動下，調整後營業收入翻了一番，調整後營業利潤率和EBITDA 利潤率分別達到24.1% 和27.6%，分別提高了1,070 和1,030 個基點。該團隊執行得非常好，我們預計今年剩餘時間將繼續保持實力和盈利能力。

Let's move to Slide 10 to discuss our balance sheet and cash flow. At June 30, we had $384 million available on our revolver and cash on hand of $19 million. During the quarter, we generated $76 million in cash from operations through a combination of margin improvement and $33 million generated from reductions in working capital. We collected cash from inventory reductions and benefited from increases in accounts payable as purchase activity normalize and other liabilities as project-related deposits and billings accelerated with accounts receivable rising on increased sales. As a result, our free cash flow generation during the second quarter was an exceptionally strong 20% of sales.

讓我們轉到幻燈片 10 來討論我們的資產負債表和現金流。截至 6 月 30 日，我們的左輪手槍可用資金為 3.84 億美元，手頭現金為 1,900 萬美元。本季度，我們通過提高利潤率和減少營運資本產生 3300 萬美元的運營現金，產生了 7600 萬美元的現金。我們從庫存減少中獲得了現金，並受益於採購活動正常化帶來的應付賬款增加以及項目相關存款和賬單加速帶來的其他負債以及銷售增加帶來的應收賬款增加。因此，第二季度我們的自由現金流量佔銷售額的 20% 異常強勁。

Free cash flow in the first half of the year benefited from an approximately $40 million reduction in our investment in working capital. While we expect continued contribution of cash flow from margin expansion, the impact of working capital improvements is not expected to be significant in the second half of the year. We used cash generated, along with cash on hand to pay down $40 million on our revolver during the quarter. At quarter end, we had $12 million outstanding on our revolver and net leverage is $0.

上半年的自由現金流受益於我們的營運資本投資減少了約 4000 萬美元。雖然我們預計利潤率擴張將繼續貢獻現金流，但預計下半年營運資本改善的影響不會很大。本季度我們使用產生的現金以及手頭現金支付了 4000 萬美元的左輪手槍費用。截至季度末，我們的左輪手槍餘額為 1200 萬美元，淨槓桿率為 0 美元。

As I mentioned earlier, at the beginning of July, we invested approximately $10 million in Utah-based building accessories business. Given our results to date, we're confident we can drive continued strength in our operating cash generation on stronger profitability in 2023 with careful working capital management and continue to target free cash flow in excess of 10% of sales for the year. We continue to expect to use generated cash flow to repay outstanding borrowings, fund investments in organic and inorganic growth along with our opportunistic stock repurchases, supplemented is needed by use of our revolver depending on the timing of any M&A or repurchases.

正如我之前提到的，7 月初，我們向猶他州的建築配件業務投資了約 1000 萬美元。鑑於我們迄今為止的業績，我們有信心通過謹慎的營運資本管理，在2023 年實現更強的盈利能力，從而推動我們的運營現金生成持續強勁，並繼續將自由現金流目標定為超過當年銷售額的10%。我們繼續期望利用產生的現金流來償還未償借款、有機和無機增長的基金投資以及機會性股票回購，並根據任何併購或回購的時間，通過使用我們的左輪手槍進行補充。

Let's move to Slide 11 to update you on our share repurchase program. During the second quarter, we repurchased approximately 368,000 shares with a market value of $17.8 million or an average price of $48.40. We funded this repurchase through operating cash flow. From the inception of the buyback to the end of the second quarter, we expended approximately 56% of our $200 million authorization. At quarter end, we had 30.4 million shares outstanding with the weighted average shares outstanding of $30.7 million during the second quarter.

讓我們轉到幻燈片 11，向您介紹我們的股票回購計劃的最新情況。第二季度，我們回購了約 368,000 股股票，市值為 1780 萬美元，平均價格為 48.40 美元。我們通過經營現金流為本次回購提供資金。從回購開始到第二季度末，我們花費了 2 億美元授權的約 56%。截至季度末，我們有 3040 萬股流通股，第二季度加權平均流通股為 3070 萬美元。

I'll turn the call back to Bill.

我會把電話轉回給比爾。

Thanks, Tim. Let's move to Slide 12 to review our 2023 strategy and priorities. At the midpoint of this -- of the year, we have better clarity in regard to our end markets. I think we're executing relatively well, and we are confident in raising our outlook for 2023. Our priorities and focus are unchanged and we will continue with our 5 key initiatives. First, drive growth, quality of earnings and margin improvement and strong cash performance; secondly, execute 80/20 initiatives and accelerate our participation initiatives. Third, stay the course of our investments in our digital transformation. Fourth, continued to strengthen the organization, add experience and competency and also continue to optimize the operating structure. And fifth conduct business in the right and responsible way with discipline and focus.

謝謝，蒂姆。讓我們轉到幻燈片 12 來回顧我們的 2023 年戰略和優先事項。今年年中，我們對終端市場有了更清晰的認識。我認為我們的執行情況相對較好，並且我們有信心提高 2023 年的前景。我們的優先事項和重點沒有改變，我們將繼續實施 5 項關鍵舉措。首先，推動增長、盈利質量和利潤率改善以及強勁的現金表現；其次，執行80/20舉措並加快我們的參與舉措。第三，堅持數字化轉型投資。四是持續強化組織，增加經驗和能力，持續優化經營結構。第五，以正確和負責任的方式開展業務，遵守紀律和專注。

Now let's move to Slide 13 to review our revised 2023 guidance. Given our first half results and current outlook for our end markets, we expect to deliver a strong second half of the year. And as a result, we are increasing our full year guidance as follows: Consolidated net sales ranged between $1.36 billion to $1.41 billion, compared to $1.38 billion in 2022. This is unchanged from our prior outlook. GAAP operating margin will expand to between 11.1% and 11.3%, up approximately 12% versus prior guide. And adjusted operating margin expansion will range between 12.3% and 12.5%, up approximately 11% versus prior guide. GAAP EPS will range between $3.46 and $3.66, up approximately 13% versus prior guide and adjusted EPS will range between $3.90 and $4.10, up approximately 12% versus prior guide. Free cash flow as a percent of net sales will remain in excess of 10% compared to 6% in 2022. We delivered a relatively strong first half, and we look forward to a good second half as well. Our team is focused on the things that matter most. And coupled with ongoing execution and 80/20 momentum, we are confident we will continue to deliver positive results.

現在讓我們轉到幻燈片 13 來回顧一下我們修訂後的 2023 年指南。鑑於我們上半年的業績和當前終端市場的前景，我們預計下半年將表現強勁。因此，我們將全年指導提高如下：合併淨銷售額在 13.6 億美元至 14.1 億美元之間，而 2022 年為 13.8 億美元。這與我們之前的預期沒有變化。 GAAP 運營利潤率將擴大至 11.1% 至 11.3%，比之前的指導提高約 12%。調整後的營業利潤率擴張範圍將在 12.3% 至 12.5% 之間，比之前的指導提高約 11%。 GAAP 每股收益將在 3.46 美元至 3.66 美元之間，較之前的指導增長約 13%，調整後的每股收益將在 3.90 美元至 4.10 美元之間，較之前的指導增長約 12%。自由現金流占淨銷售額的百分比將保持在 10% 以上，而 2022 年為 6%。我們上半年的業績相對強勁，我們也期待下半年的表現。我們的團隊專注於最重要的事情。加上持續的執行力和 80/20 的勢頭，我們有信心繼續取得積極的成果。

Finally, I am grateful to everyone on the Gibraltar team for the progress that we've made and also the opportunities we've identified going forward.

最後，我感謝直布羅陀團隊中的每個人所取得的進步以及我們所發現的未來機會。

Now let's open the call up and we'll take your questions.

現在讓我們開始通話，我們將回答您的問題。

(Operator Instructions) Our first question comes from the line of Dan Moore with CJS Securities.

（操作員指令）我們的第一個問題來自 CJS 證券的 Dan Moore。

It's Pete Lukas for Dan. Congratulations on a great quarter. Just wanted to start with Residential. You touched on it in your prepared remarks, talking about volumes improving and margins improving in the second half. Just, I guess, in terms of remodel and repair, how is that holding up more broadly? And what are your expectations for continued participation gains over the next 12 to 24 months? Kind of how do you think about that? And also, you mentioned M&A in the space. How do you think about that going forward?

丹是皮特·盧卡斯。祝賀您度過了一個美好的季度。只是想從住宅開始。您在準備好的發言中談到了這一點，談到下半年銷量的改善和利潤率的改善。只是，我想，就改造和維修而言，更廣泛的情況如何？您對未來 12 至 24 個月持續參與度增長有何期望？您對此有何看法？此外，您還提到了該領域的併購。您如何看待未來的發展？

Okay. Pete, we'll break that down a little bit. So first and foremost, the industry has gone through -- this change getting back to seasonality. So that is playing out like we thought. So Q2 and Q3 is back to the highest quarters. And so the volume is increasing commensurate with that. I think the other thing that was interesting when you started [hear] rumblings of recession back last year, a lot of folks in the industry started to slowdown in short balance sheets and probably overcorrected relative to what end market demand was really doing. And so we started to see a little bit of that restocking come back into play as we got into the season as well. So I think that's going to continue carrying forward both of those as we move into the rest of the year.

好的。皮特，我們會稍微分解一下。因此，首先也是最重要的是，該行業已經經歷了這種變化，又回到了季節性。所以這就像我們想像的那樣。因此，第二季度和第三季度又回到了最高季度。因此，數量也在相應增加。我認為，當你去年開始[聽到]經濟衰退的傳言時，另一件有趣的事情是，該行業的許多人開始放緩短期資產負債表的步伐，並且相對於終端市場需求的實際情況，可能矯枉過正。因此，隨著季節的到來，我們開始看到一些補貨又開始發揮作用。因此，我認為，隨著我們進入今年剩餘時間，這兩個目標將繼續推進。

And on the front of -- when you think about remodel repair, we're really more repair as opposed to less on the remodel piece with what we do in residential, and that's been relatively steady from our point of sale results where we see every week, what our products are selling out to end customers. That really has stayed positive. It came down, as I mentioned in our reamarks (inaudible) versus the previous year as the industry shifted down, and you had a couple of headwinds with market pricing coming down. But in general, demand has stayed relatively solid, and we expect that to continue going forward this year.

首先，當您考慮改造維修時，我們實際上進行了更多的維修，而不是在住宅改造方面進行了更少的維修，從我們的銷售點結果來看，這相對穩定，我們看到每個一周，我們的產品銷售給最終客戶。這確實一直保持積極的態度。正如我在我們的評論（聽不清）中提到的那樣，隨著行業的下滑，與前一年相比，它有所下降，並且市場定價下降帶來了一些阻力。但總體而言，需求保持相對穩定，我們預計今年這種情況將繼續下去。

And as it relates to participation gains, it's just something that we've employed as a strategy the last 4 years of just trying to increase our service levels and be agile and responsive to our customers, expand into some geographies that we traditionally haven't been in as well as invest in resources where we didn't have presence. And as a result, it's just continue to chip away and those opportunities continue to present themselves. And as they do, we're trying to act swiftly and be that supplier of choice. So we still feel really good about the opportunities in front of us on a participation front.

由於它與參與收益相關，因此我們在過去 4 年中一直將其作為一項戰略，旨在提高我們的服務水平，對客戶保持敏捷和響應，擴展到一些我們傳統上沒有涉足的地區。參與並投資我們沒有涉足的資源。結果，它只是繼續消失，而這些機會繼續出現。正如他們所做的那樣，我們正在努力迅速採取行動，成為他們的首選供應商。因此，我們仍然對我們面前的參與機會感到非常滿意。

And then shifting to Agtech. You kind of touched on -- you did touch on it in the prepared remarks. And sorry, if I missed some of it here. But in terms of when would you expect recent growth in the pipeline backlog to translate into faster growth just over the next, call it, 12 months. I know you talked about improving sales in the second half and some projects coming on then in terms of the first phase. But how do we think about that?

然後轉向農業科技。您在準備好的發言中確實談到了這一點。抱歉，如果我在這裡錯過了一些內容。但就您預計近期管道積壓的增長何時會轉化為未來更快的增長（即 12 個月）而言。我知道您談到了下半年銷售的改善以及第一階段的一些項目。但我們如何看待這一點呢？

Yes. So the project I referenced in the remarks that we just signed will actually start generating revenue in the third -- late in the third and into the fourth quarter and carry into next year. And it really depends on the size of these projects. This is a relatively large one. So once they are signed, they tend to start having an impact for us relatively soon, typically the next quarter or so as things ramp up. So I think as the backlog continues to build, you'll start seeing more of a steady stream of growth come from that backlog on a consistent basis in subsequent quarters that are in front of us. .

是的。因此，我在我們剛剛簽署的評論中提到的項目實際上將在第三季度開始產生收入——第三季度末和第四季度，並延續到明年。這實際上取決於這些項目的規模。這是一個比較大的。因此，一旦簽署，它們往往會相對較快地開始對我們產生影響，通常是在下個季度左右，隨著事情的進展。因此，我認為，隨著積壓訂單繼續增加，您將開始看到在我們面前的後續幾個季度中，積壓訂單將持續帶來更多穩定的增長。 。

And last one for me on renewables. Margins have historically been quite lumpy. What are the keys to driving margin expansion going forward? Is it the module of supply? Or how do we kind of think about that?

我的最後一篇是關於可再生能源的。從歷史上看，利潤率一直相當不穩定。推動未來利潤率擴張的關鍵是什麼？是供電模塊嗎？或者我們如何看待這個問題？

Yes. I think the industry has been really lumpy the last 2.5 years with all these trade issues that we've been dealing with. I think as some of this settles in to a consistent pattern, it gives everybody a chance to operate in a much more consistent way. And from our perspective, as volume gets a little bit more predictable, that's always helpful. But really where we've been focused is trying to find ways to improve and challenge some of the paradigms around how we traditionally operate the business. And I think that's what's paying off for us now.

是的。我認為在過去 2.5 年裡，由於我們一直在處理所有這些貿易問題，該行業確實很不穩定。我認為，隨著其中一些內容形成一致的模式，它讓每個人都有機會以更加一致的方式運作。從我們的角度來看，隨著交易量變得更加可預測，這總是有幫助的。但我們真正關注的重點是尋找方法來改進和挑戰我們傳統業務運營方式的一些範式。我認為這就是我們現在所得到的回報。

So for us to generate EBITDA margins close to 15% on down volume gives you some indication of some of the operating performance changes that we've been able to make. And so we don't want to be volume dependent, obviously, on margins, we will like that to be incremental as the volume comes back. So I think as panel supply becomes a little more consistent, that's really the thing that matters most. That will help us be more consistent as well and continue to grow our margins. The permitting process, we mentioned is really more, we think, related to just the increasing demand that's come back online for a lot of local government offices now has created a backlog of permits that have to be flushed through the system after a 2-year sort of a hiatus of much slower demand. So it's just flexing that muscle, building that muscle again. But it's not a structural issue per se as much as it is just ramping back up.

因此，我們在銷量下降的情況下產生接近 15% 的 EBITDA 利潤率，這可以讓您了解我們已經能夠做出的一些經營業績變化。因此，我們不想依賴於銷量，顯然，利潤率，我們希望隨著銷量的恢復而增加。因此，我認為隨著面板供應變得更加穩定，這確實是最重要的事情。這也將幫助我們更加穩定並繼續增加我們的利潤。我們認為，我們提到的許可流程實際上更多地與許多地方政府辦公室重新上線的需求增加有關，導致許可證積壓，必須在兩年後通過系統進行清理。有點像是需求放緩的間歇期。所以這只是鍛煉肌肉，再次增強肌肉。但這本身並不是一個結構性問題，而是只是在回升。

Our next question comes from the line of [Alex Hanneman] with Sidoti & Company.

我們的下一個問題來自 Sidoti & Company 的 [Alex Hanneman]。

This is [Alex Hanneman] on for [Julio Romero]. Congrats on a nice quarter. First question -- yes, of course. My first question is on renewables. Could you speak to the pace of activity and bookings you saw during the quarter? And was that trending upward as you ended the quarter?

這是[亞歷克斯·漢尼曼]為[胡里奧·羅梅羅]做的。恭喜您度過了一個美好的季度。第一個問題——是的，當然。我的第一個問題是關於可再生能源的。您能否談談本季度的活動和預訂情況？當您本季度結束時，這一趨勢是否呈上升趨勢？

Yes. Good question. So if you recall from our last quarter, our bookings coming out in Q1 were substantially better than we thought they would be going into the quarter. So we were up sequentially almost 100% and getting close to getting our bookings and backlog ahead of actual last year. In the second quarter, we were up off of that strong quarter, up another 17%. And with our sequential bookings. And that actually put us over the top on a year-over-year basis, which was, from our perspective, really positive because it's -- I think what it has demonstrated is maybe the industry has kind of hit that bottom and now starting to recover, and now we're in that second quarter where you're starting to see year-over-year backlog and therefore, I think that will translate into growth getting back on plan for the industry as well as for our business. So -- and we see that momentum turning into the third quarter as well.

是的。好問題。因此，如果您還記得我們上個季度的情況，我們第一季度的預訂量比我們預期的本季度要好得多。因此，我們的訂單量環比增長了近 100%，並且接近於比去年實際提前獲得訂單和積壓訂單。第二季度，我們在強勁的季度基礎上又增長了 17%。以及我們的連續預訂。這實際上使我們在同比的基礎上處於領先地位，從我們的角度來看，這確實是積極的，因為它 - 我認為它所表明的可能是該行業已經觸底，現在開始復甦，現在我們正處於第二季度，您開始看到同比積壓，因此，我認為這將轉化為行業和我們業務的增長恢復計劃。因此，我們看到這種勢頭也將延續到第三季度。

Very helpful. I have 2 more questions. The second on residential. Could you talk about where we are in terms of price costs? Would you say that's complete or close to complete?

很有幫助。我還有 2 個問題。第二個是住宅。您能談談我們在價格成本方面的情況嗎？你說這已經完成了還是接近完成了？

Yes, I think it is. We had said, if I state it back, Q3 of last year, that Q4 and Q1 of this year would be correction quarters for the industry as commodity prices came down swiftly. There was a lot of inventory on hand for everybody in the industry because the supply chain challenges the previous 2 years, and it's taken -- would take about 2 quarters for that inventory to flush itself out and therefore, a price of -- new pricing to be aligned with better input costs. And I think we've done a good job managing that, and we said we would flip the tide in Q2, and we would generate better margins year-over-year in Q2, and that's kind of what happened. And I wouldn't say it's 100%, but we've done a good job of getting ourselves in a much better position in Q2 and leading into the rest of the year and onwards. So a lot of hard work, but the team has done a great job getting us in this position.

是的，我認為是的。我們曾說過，如果我回顧一下去年的第三季度，今年第四季度和第一季度將是該行業的調整季度，因為大宗商品價格迅速下跌。該行業的每個人手頭都有大量庫存，因為供應鏈在過去兩年中面臨挑戰，並且需要大約兩個季度的時間才能將庫存清空，因此，價格為新定價與更好的投入成本保持一致。我認為我們在管理方面做得很好，我們說過我們將在第二季度扭轉局勢，我們將在第二季度產生同比更好的利潤率，這就是發生的事情。我不會說這是 100%，但我們做得很好，讓自己在第二季度處於更好的位置，並進入今年剩餘時間及以後。儘管付出了很多努力，但團隊還是為我們取得了今天的成績做了出色的工作。

Got it. And last question from me is on infrastructure. The margin that you posted there was pretty impressive. And in the press release, you noted execution 80-20 productivity, supply chain and product mix as being the main drivers. Could you help rank those or kind of help us understand which is the most significant there?

知道了。我的最後一個問題是關於基礎設施的。你在那裡張貼的利潤相當可觀。在新聞稿中，您指出執行 80-20 生產力、供應鍊和產品組合是主要驅動力。您能否幫助對這些內容進行排名或幫助我們了解其中最重要的內容？

Yes. Honestly, it's really relatively equivalent across the board, and it's not something new, per se. The team has been making progress on the margin front and the growth front, really over the last 3 years. And the build has really -- we said last year that the build would start to be impactful towards the end of '22 and help us start accelerating into 2023, which has really been the case on the top line, which is -- we're pleased with the backlog increasing significantly, et cetera. But really, the margin story has been a combination of 80/20, done a lot of work on product line simplification, customer simplification. And we've made investments in some of our process and equipment, I think, has just made us much more productive and lower our cost.

是的。老實說，它在整體上確實相對等效，而且本身並不是什麼新鮮事。在過去的三年裡，該團隊在利潤率和增長方面一直在取得進展。我們去年說過，這一建設確實會在 22 年底開始產生影響，並幫助我們開始加速進入 2023 年，這確實是最重要的情況，即我們'我們對積壓訂單大幅增加等感到滿意。但實際上，利潤故事是 80/20 的結合，在產品線簡化、客戶簡化方面做了大量工作。我認為，我們對一些流程和設備進行了投資，這使我們的生產力更高，成本更低。

And then on top of that, we've had -- as we've broken into some new opportunities, we've been able to mix to higher-margin products and top of making those products higher margin through all the 80/20 work and productivity initiatives. So it really has been a multifaceted front towards getting the business where it is today, and it's really been a journey over the last 3 years. So I wouldn't say it was anything unique those 4 or 5 items in the quarter, I'd say it's pretty consistent with the work that's been going on for some time.

最重要的是，當我們開拓了一些新機會時，我們已經能夠混合利潤率更高的產品，並且通過所有 80/20 工作使這些產品的利潤率更高和生產力舉措。因此，為了使業務達到今天的水平，這確實是一個多方面的工作，而且這確實是過去三年的一段旅程。因此，我不會說本季度的 4 或 5 個項目有什麼獨特之處，我想說它與已經進行了一段時間的工作非常一致。

And 1 quick follow-up. How do you expect that margin to trend into the third and fourth quarters?

以及 1 次快速跟進。您預計第三和第四季度的利潤率趨勢如何？

Well, the business has performed well. I think like some of our other businesses, you'll see some differences as we get into the later parts of the year, there's a little bit of seasonality there, but we continue to expects to see strong margin performance.

嗯，生意做得不錯。我認為，就像我們的其他一些業務一樣，當我們進入今年下半年時，您會看到一些差異，其中存在一些季節性，但我們仍然預計會看到強勁的利潤率表現。

(Operator Instructions) Our next question comes from the line of Walter Liptak with Seaport Global Securities.

（操作員說明）我們的下一個問題來自 Seaport Global Securities 的 Walter Liptak。

And nice work on the margins. Congratulations. So that last question, which segment were you guys referring to? I missed that.

而且邊緣工作做得很好。恭喜。那麼最後一個問題，你們指的是哪一部分？我錯過了。

Infrastructure. The combination of all that has been driving the journey of margin improvement and in this case, growth as well.

基礎設施。所有這些因素的結合一直推動著利潤率的提高，在這種情況下，也推動了增長。

Yes, that's great. Okay. Yes. So maybe in a similar way, renewables with the margin improvement, are these sustainable, you think, in the back half of the year with a better kind of fundamental supply chain...

是的，那太好了。好的。是的。因此，也許以類似的方式，利潤率提高的可再生能源是否可持續，你認為，在今年下半年，具有更好的基本供應鏈......

Yes. We think so. And I would encourage reference Q3 and Q4 of last year on down volume, we ran margins very similar to what we just posted in the second quarter -- actually maybe a little bit stronger. So as the volume returns starts to be more consistent, I think we should expect these margins to continue and improve as well.

是的。我們認為是這樣。我鼓勵參考去年第三季度和第四季度的銷量下降情況，我們的利潤率與我們剛剛在第二季度發布的非常相似——實際上可能會更強一些。因此，隨著銷量回報開始變得更加一致，我認為我們應該期望這些利潤率也將持續並改善。

Okay. All right. Great. And maybe just a couple of follow-ups here. The -- I thought I heard you say that you're going to do an ERP system in Resi.

好的。好的。偉大的。也許這裡只是一些後續行動。 - 我想我聽到你說你要在 Resi 開發一個 ERP 系統。

Yes. We actually started on that journey a 4 year ago. So just for context, 4 years ago we started this journey with our renewables business as we integrated across the businesses, we got to a single ERP business. Then we did the same thing for Agtech business. And then we started a year ago with our residential business. So we got our first one in a year ago. We're in the process of putting our second one in (inaudible) , and then we'll hopefully get the group finished up by the end of next year. And so each of our large -- and our infrastructure has already been on a common system on time. So we'll have all 4 of our segments operating on ERP systems that are latest and greatest and will -- in the case where we have multiple locations, get everybody on the same operating system. So that's the journey we've been on now for 4 years.

是的。事實上，我們四年前就開始了這段旅程。因此，就背景而言，4 年前，我們開始了可再生能源業務的旅程，隨著我們跨業務整合，我們進入了單一 ERP 業務。然後我們對農業科技業務做了同樣的事情。一年前我們開始了住宅業務。所以我們在一年前得到了第一個。我們正在將第二個項目放入（聽不清），然後我們希望在明年年底之前完成該小組的工作。因此，我們的每一個大型基礎設施都已經按時建立在一個通用系統上。因此，我們的所有 4 個部門都將在最新、最好的 ERP 系統上運行，並且在我們擁有多個地點的情況下，讓每個人都使用同一個操作系統。這就是我們四年來一直在走的旅程。

Okay. Great. I don't remember that there's any disruption. So you guys must be good at it.

好的。偉大的。我不記得有任何干擾。所以你們一定很擅長。

Yes, we've been pretty -- been walking, I want to say, slow walking. This requires a lot of change management, involves a lot of people, obviously, and effectively, which is mapping every process and every piece of data flow you can think of that impacts your business from quote to cash. And so it takes time, you got to get that right. If you get that right, then the implementation when you turn a switch on inherently a much easier and much more effective. So we're walking through the process, trying not to be disruptive and frankly, trying to do all this in the middle of the pretty chaotic macro environment the last 4 years. But for us, we thought it was really critical for us to be able to scale and to get to the next level of performance to have these systems in place. So it's really been a necessary investment over the last 4 years, and we'll continue to drive that.

是的，我們一直很漂亮——我想說，一直在走，慢慢走。這需要大量的變更管理，涉及很多人，顯然並且有效，這映射了您能想到的影響您的業務從報價到現金的每個流程和每條數據流。所以這需要時間，你必須把它做好。如果你做對了，那麼當你打開開關時，實施本質上會更容易、更有效。因此，我們正在經歷這個過程，盡量不造成破壞，坦率地說，試圖在過去四年相當混亂的宏觀環境中完成這一切。但對我們來說，我們認為能夠擴展並達到更高水平的性能以部署這些系統確實至關重要。因此，這確實是過去四年中的一項必要投資，我們將繼續推動這一投資。

This foundation, by the way, that we're just talking about will allow us to the next level. When you start thinking about -- and I don't throw AI out because everyone wants to talk about it, but the fundamentals of how you take system integration and engage your business going forward, I think we'll be in a much better position to do that than we would have otherwise.

順便說一句，我們剛剛談論的這個基礎將使我們能夠更上一層樓。當你開始思考——我不會因為每個人都想談論它而拋棄人工智能，而是考慮如何進行系統集成並參與未來業務的基礎知識時，我認為我們將處於一個更好的位置這樣做比我們本來會做的更好。

Okay. Great. And then maybe the last 1 for me is, I wonder if you could just give us some more details about the deal that you got in AgTech. I think you said it was $40 million, and it was relatively small. That sounds like a pretty good deal to me. I wonder how much bigger is the Phase II portion to it. And is this something where you can grow -- keep growing with that customer? How should we think about future orders?

好的。偉大的。也許對我來說最後一個問題是，我想知道您是否可以給我們提供一些有關您在農業科技方面達成的交易的更多細節。我想你說的是4000萬美元，而且相對較小。這對我來說聽起來很划算。我想知道第二階段的部分有多大。這是你可以成長的地方——與客戶一起不斷成長嗎？我們應該如何考慮未來的訂單？

Yes. This is one of our long-standing customers to start with. So they're expanding, adding capacity around this particular product that they're growing, which they've been growing in other facilities that we've built for them in the past. So as that demand continues from -- think about all the demand for produce in your supermarket space, this is where a lot of that is impacting end consumers. So typically, this is going to be a large site. And when it's all said and done, it's -- I don't know the exact number of acres, but it's 50-plus acres under roof growing different types of fruits and/or vegetables.

是的。這是我們的長期客戶之一。因此，他們正在擴大規模，增加圍繞他們正在種植的特定產品的產能，他們一直在我們過去為他們建造的其他設施中種植這種產品。因此，隨著這種需求的持續，想想你的超市空間中對農產品的所有需求，這就是其中很多影響最終消費者的地方。通常，這將是一個大型站點。總而言之，我不知道確切的英畝數，但屋頂下有超過 50 英畝的土地種植不同類型的水果和/或蔬菜。

So projects tend to be done in phases. So you'll do the civil for the entire thing, you do the first phase and then you'll do the second phase. The second phase in this case is actually a little bit bigger than the first. And as we get done with the first phase, that second one will come into final design, and then we'll get moving on that. And that should be very helpful going into next year, depending on the completion of the first phase and when that gets done. But there tends to be a little bit overlap between when you finish a phase and you send a contract for the next phase that comes with it. And that's I would say it's typical in a sense when you have a multiphase project. That's how it works, but none of your project is multiphase. It depends on the size that you have, the water rights that you secured, the bunch of permitting things that go with it. So in this case, it's going to be a relatively large production facility that will be done between now and the end of next year.

因此，項目往往是分階段完成的。所以你將為整個事情做民事工作，你做第一階段，然後你將做第二階段。在這種情況下，第二階段實際上比第一階段大一點。當我們完成第一階段時，第二階段將進入最終設計，然後我們將繼續進行。這對明年應該非常有幫助，具體取決於第一階段的完成情況以及何時完成。但是，在完成一個階段和發送下一階段的合同之間往往會有一些重疊。我想說的是，當你有一個多階段項目時，這在某種意義上是典型的。這就是它的工作原理，但您的項目都不是多階段的。這取決於您擁有的規模、您獲得的水權以及與之相關的一系列許可事項。因此，在這種情況下，這將是一個相對較大的生產設施，將從現在到明年年底建成。

Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Bosway for any final comments.

謝謝。女士們先生們，我們的問答環節到此結束。我將把發言權交還給博斯威先生，徵求最後的意見。

Well, I want to thank everyone again for joining us today. Coming up, we expect to present at the Seaport Global Summer Conference in August and the Sidoti Fall Conference in September as well as a number of other marketing activities. Look forward to updating you on our progress when we report our third quarter results as well. So thank you, and have a great day.

好吧，我想再次感謝大家今天加入我們。接下來，我們預計將在 8 月的 Seaport 全球夏季會議和 9 月的 Sidoti 秋季會議以及許多其他營銷活動中進行展示。期待在我們報告第三季度業績時向您通報我們的最新進展。謝謝你，祝你有美好的一天。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。