SiteOne Landscape Supply Inc (SITE) 2023 Q1 法說會逐字稿

Greetings, and welcome to the SiteOne Landscape Supply Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎參加 SiteOne Landscape Supply 財報電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, John Guthrie, Executive Vice President and Chief Financial Officer. Please go ahead.

現在我很高興向您介紹主持人、執行副總裁兼首席財務官 John Guthrie。請繼續。

Thank you, and good morning, everyone. We issued our first quarter 2023 earnings press release this morning and posted a slide presentation to the Investor Relations portion of our website at investors.siteone.com.

謝謝大家，大家早上好。今天早上，我們發布了 2023 年第一季度收益新聞稿，並在我們網站的投資者關係部分發布了幻燈片演示（網址為 Investors.siteone.com）。

I'm joined today by Doug Black, our Chairman and Chief Executive Officer; and Scott Salmon, Executive Vice President, Strategy and Development.

今天，我們的董事長兼首席執行官道格·布萊克 (Doug Black) 也加入了我的行列。斯科特·薩蒙（Scott Salmon），戰略與發展執行副總裁。

Before we begin, I would like to remind everyone that today's press release, slide presentation and the statements made during the call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

在我們開始之前，我想提醒大家，今天的新聞稿、幻燈片演示和電話會議期間的聲明均包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings press release and in our filings with the Securities and Exchange Commission.

這些陳述存在風險和不確定性，可能導致實際結果與我們的預期和預測存在重大差異。此類風險和不確定性包括收益新聞稿和我們向美國證券交易委員會提交的文件中列出的因素。

Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in our earnings release and in the slide presentation.

此外，在今天的電話會議中，我們將討論非公認會計準則衡量標準，我們認為這些衡量標準有助於評估我們的業績。這些措施的協調可以在我們的收益發布和幻燈片演示中找到。

I would now like to turn the call over to Doug Black.

我現在想把電話轉給道格·布萊克。

Good morning, and thank you for joining us today. Against the headwinds of a very strong prior year period, poor weather in the West and North and moderating market demand, we executed well in the first quarter, delivering top line growth and gross margin expansion, along with a solid EBITDA outcome in this traditionally low volume quarter. We are also very pleased to add 2 new high-performing companies to SiteOne during the first quarter. These companies have talented teams and strong customer relationships and expand our product lines and market presence in their respective markets.

早上好，感謝您今天加入我們。面對去年強勁的逆風、西部和北部的惡劣天氣以及市場需求放緩，我們在第一季度表現良好，實現了營收增長和毛利率擴張，並在這個傳統的低水平地區實現了穩健的 EBITDA 成果。季度卷。我們還非常高興在第一季度向 SiteOne 添加 2 家新的高績效公司。這些公司擁有才華橫溢的團隊和強大的客戶關係，並擴大了我們在各自市場的產品線和市場佔有率。

To the execution of our commercial and operational initiatives and our acquisition strategy, we continue to build SiteOne as a world-class market leader for the long term, while delivering consistent performance and growth in the near term. As we face softer markets, we remain confident that our well-balanced business, strong balance sheet, exceptional teams, improved capabilities and robust acquisition pipeline, position us well to navigate the current environment and achieve continued success.

為了執行我們的商業和運營計劃以及收購戰略，我們將繼續將 SiteOne 打造為長期的世界級市場領導者，同時在短期內提供穩定的業績和增長。當我們面臨疲軟的市場時，我們仍然相信，我們平衡的業務、強勁的資產負債表、卓越的團隊、改進的能力和強大的收購渠道將使我們能夠很好地應對當前的環境並取得持續的成功。

I'll start today's call with a brief review of our unique market position and our strategy for long-term performance and growth, followed by some highlights from the quarter. John Guthrie will then walk you through our first quarter financial results in more detail and provide an update on our balance sheet and liquidity position. Scott Salmon will discuss our acquisition strategy, and then I will come back to address our latest outlook for 2023 before taking your questions.

在今天的電話會議開始時，我將簡要回顧我們獨特的市場地位以及我們的長期業績和增長戰略，然後介紹本季度的一些亮點。然後，約翰·格思裡 (John Guthrie) 將向您詳細介紹我們第一季度的財務業績，並提供我們資產負債表和流動性狀況的最新信息。 Scott Salmon 將討論我們的收購策略，然後我將在回答大家的問題之前談談我們對 2023 年的最新展望。

As shown on Slide 4 of the earnings presentation, we have grown our footprint to more than 640 branches and 4 distribution centers across 45 U.S. states and 6 Canadian provinces. We are the clear industry leader over 4x the size of our nearest competitor. Yet we estimate that we only have about a 16% share of the very fragmented $25 billion wholesale landscaping products distribution market. Accordingly, our future growth opportunities remain significant. We have a balanced mix of business with 65% focused on maintenance, repair and upgrade, 21% focused on new residential construction and 14% on new commercial and recreational construction. As the only national full product line wholesale distributor in the market, we also have an excellent balance across our product lines as well as geographically.

如收益演示幻燈片 4 所示，我們的足跡已擴大到美國 45 個州和加拿大 6 個省的 640 多個分支機構和 4 個配送中心。我們是明顯的行業領導者，規模是最接近的競爭對手的 4 倍以上。然而，我們估計，在價值 250 億美元的批發園林綠化產品分銷市場中，我們只佔有 16% 左右的份額。因此，我們未來的增長機會仍然很大。我們擁有均衡的業務組合，其中 65% 專注於維護、修理和升級，21% 專注於新建住宅建設，14% 專注於新建商業和娛樂建設。作為市場上唯一的全國性全產品線批發經銷商，我們在產品線和地域上也擁有良好的平衡。

Our strategy to fill in our product lines across the U.S. and Canada both organically and through acquisition, strengthens and reinforces this balance over time. Overall, our balanced end market mix, broad product portfolio and good geographic coverage offer us multiple avenues to grow and create value for our customers and suppliers while providing important resiliency in softer markets.

我們的戰略是通過有機方式和收購來充實我們在美國和加拿大的產品線，隨著時間的推移，這種平衡將得到加強和加強。總體而言，我們均衡的終端市場組合、廣泛的產品組合和良好的地理覆蓋範圍為我們提供了多種增長途徑，為我們的客戶和供應商創造價值，同時在疲軟的市場中提供重要的彈性。

Turning to Slide 5. Our strategy is to leverage the scale, resources, functional talent and capabilities that we have as the largest company in our industry, all in support of our talented, experienced and entrepreneurial local teams to consistently deliver superior value to our customers and suppliers. From a long way in building SiteOne and executing our strategy, but we are relatively early in our development as a true world-class company. Accordingly, we remain highly focused on our commercial and operational initiatives to further build our capability to create value for all our stakeholders. These initiatives are complemented by our acquisition strategy, which fills in our product portfolio, moves us into new geographic markets and adds terrific new talent to SiteOne. Taken all together, our strategy creates superior value for our shareholders through organic growth, acquisition growth and EBITDA margin expansion.

轉向幻燈片 5。我們的戰略是利用我們作為業內最大公司所擁有的規模、資源、職能人才和能力，所有這些都支持我們才華橫溢、經驗豐富、富有創業精神的本地團隊，持續為我們的客戶提供卓越的價值和供應商。從構建 SiteOne 和執行我們的戰略來看，我們已經走了很長一段路，但我們作為真正的世界級公司的發展還相對較早。因此，我們仍然高度關注我們的商業和運營計劃，以進一步增強我們為所有利益相關者創造價值的能力。這些舉措與我們的收購戰略相輔相成，收購戰略充實了我們的產品組合，將我們帶入新的地域市場，並為 SiteOne 增添了出色的新人才。總而言之，我們的戰略通過有機增長、收購增長和 EBITDA 利潤率擴張為股東創造了卓越的價值。

If you turn to Slide 6, you can see our strong track record of performance and growth over the last 7 years with consistent organic and acquisition growth and EBITDA margin expansion. We have done this while investing heavily in our teams and in new systems and technologies to build the foundation for SiteOne and to create superior capabilities for our customers and suppliers.

如果您翻到幻燈片 6，您可以看到我們過去 7 年的強勁業績和增長記錄，以及持續的有機增長和收購增長以及 EBITDA 利潤率擴張。我們在實現這一目標的同時，大力投資於我們的團隊以及新系統和技術，為 SiteOne 奠定基礎，並為我們的客戶和供應商創造卓越的能力。

Still building and investing, and we remain confident in our ability to gain market share and continue driving all 3 of our value creation levers going forward. We have now completed 82 acquisitions across all key product lines since 2014. We leveraged our expanded development team to increase acquisition activity this past year, and our pipeline of potential deals remains robust. All these companies are high performers and so they strengthened our company with excellent talent and new ideas for performance and growth. Given the fragmented nature of our industry and our modest market share, we have significant opportunity to continue growing through acquisition for many years to come.

仍在建設和投資，我們仍然對獲得市場份額並繼續推動我們所有 3 個價值創造槓桿向前發展的能力充滿信心。自 2014 年以來，我們現已在所有關鍵產品線完成了 82 項收購。去年，我們利用擴大的開發團隊增加了收購活動，並且我們的潛在交易渠道仍然強勁。所有這些公司都是高績效企業，因此他們通過優秀的人才以及績效和增長的新理念增強了我們的公司。鑑於我們行業的分散性和我們有限的市場份額，我們有很大的機會在未來許多年通過收購繼續發展。

Slide 7 shows the long runway that we have ahead in building in our product portfolio, which we aim to do primarily through acquisition, especially in the nursery hardscapes and landscape supplies categories. We're well networked with the best companies in our industry and expect to continue filling in these markets systematically over the next decade.

幻燈片 7 顯示了我們在構建產品組合方面擁有的長距離，我們的目標主要是通過收購來實現，特別是在苗圃硬景觀和景觀用品類別中。我們與業內最優秀的公司建立了良好的網絡，並期望在未來十年內繼續系統地填補這些市場。

I will now discuss some of our first quarter performance highlights as shown on Slide 8. We achieved 4% net sales growth in the first quarter as the 7% net sales growth added through acquisition was partially offset by an organic daily sales decline of 2%. Note that organic daily sales grew 32% in the first quarter of 2021, largely driven by volume and grew 17% in the first quarter of 2022, largely driven by price inflation. So in terms of sales, Q1 is our toughest comparable for 2023. Accordingly, we were pleased that the organic daily sales decline was only 2%, driven by 6% price inflation, which was offset by an 8% volume decline. We experienced the most significant volume declines in our Western markets that had record rainfall and in our Northern markets where spring came later than in 2022. While the weather was more favorable in the Southeast, Mid-Atlantic and Florida, we saw high single-digit to low double-digit organic daily sales growth during the first quarter.

我現在將討論幻燈片 8 中所示的一些第一季度業績亮點。我們在第一季度實現了 4% 的淨銷售額增長，因為通過收購增加的 7% 淨銷售額增長被每日有機銷售額下降 2% 部分抵消。請注意，2021 年第一季度的有機日銷售額增長了 32%，主要由銷量推動；2022 年第一季度的有機日銷售額增長 17%，主要由價格通脹推動。因此，就銷售額而言，第一季度是我們 2023 年最艱難的可比季度。因此，我們很高興看到，在 6% 的價格通脹推動下，日有機銷售額僅下降了 2%，但銷量下降 8% 抵消了這一影響。我們經歷了最顯著的銷量下降，西部市場的降雨量創歷史新高，而北部市場的春季來得晚於 2022 年。雖然東南部、大西洋中部和佛羅里達州的天氣較為有利，但我們看到了高個位數的銷量下降。第一季度每日有機銷售額增長較低，達到兩位數。

We've also seen the spring season kicking the gear during April, which has increased our year-to-date organic daily sales growth to approximately 1% through the first 4 weeks in April. Gross profit increased 7%, and our gross margin increased 90 basis points to a very healthy 34.3%, even as inflation continued to moderate through the quarter. The loss of the extraordinary price realization benefit achieved during the first quarter of 2022 was more than offset by our hardscapes and landscape supplies acquisitions, which carry a higher gross margin. And by lower fuel costs and some price cost benefit. Despite the strong start with gross margin in the quarter, we continue to expect gross margin for the full year to be lower than in 2022, but perhaps stronger than we had thought at the beginning of the year.

我們還看到春季在 4 月份開始加速，這使得我們今年迄今的有機日銷售額增長在 4 月份的前 4 周達到約 1%。儘管本季度通脹繼續放緩，但毛利潤增長了 7%，毛利率增長了 90 個基點，達到非常健康的 34.3%。 2022 年第一季度實現的非凡價格實現效益的損失被我們毛利率較高的硬景觀和景觀用品收購所抵消。並通過降低燃料成本和一定的價格成本獲益。儘管本季度毛利率開局強勁，但我們仍然預計全年毛利率將低於 2022 年，但可能會強於我們年初的預期。

Our SG&A as a percentage of net sales increased by 620 basis points year-over-year to 34.8%, which is a 60 basis point increase compared to the fourth quarter of 2022. Acquisitions had the largest effect on SG&A as a percentage of net sales as the same hardscapes and landscape supplies acquisitions that increased our gross margin also increased our SG&A. Additionally, several of these acquisitions were in the West and North, where poor weather and a late spring cause further deleveraging in the quarter. Lower volume and continued labor inflation were also factors contributing to the higher SG&A as a percent of net sales.

我們的 SG&A 占淨銷售額的百分比同比增長 620 個基點，達到 34.8%，與 2022 年第四季度相比增加了 60 個基點。收購對 SG&A 占淨銷售額的百分比影響最大因為同樣的硬景觀和景觀用品收購增加了我們的毛利率，也增加了我們的銷售管理費用。此外，其中一些收購發生在西部和北部，惡劣的天氣和晚春導致本季度進一步去槓桿化。銷量下降和持續的勞動力通脹也是導致銷售、管理費用占淨銷售額百分比上升的因素。

Adjusted EBITDA for the quarter declined 41% to $39.8 million, and adjusted EBITDA margin declined by 360 basis points to 4.8% as the combination of lower volume and higher SG&A yielded a more typical first quarter adjusted EBITDA outcome. Note that adjusted EBITDA during the first quarter of 2022 had increased 97% from the first quarter of 2021, reflecting strong organic sales and elevated gross margin. Overall, adjusted EBITDA in the first quarter was in line with our expectations.

該季度調整後 EBITDA 下降 41%，至 3,980 萬美元，調整後 EBITDA 利潤率下降 360 個基點，至 4.8%，原因是銷量下降和 SG&A 上升，產生了更典型的第一季度調整後 EBITDA 結果。請注意，2022 年第一季度調整後 EBITDA 較 2021 年第一季度增長 97%，反映出強勁的有機銷售和較高的毛利率。總體而言，第一季度調整後 EBITDA 符合我們的預期。

In terms of initiatives, we are pleased with our progress as we enter the busiest time of our year. We continue to grow with our small and medium customers, drive private label growth and improve our inbound freight costs through our transportation management system, all helping us to expand gross margin. We are driving organic growth through our enhanced Partners program, our Hispanic marketing initiatives and as we leverage our recently installed Salesforce CRM to drive stronger sales and better productivity from our team of more than 900 inside and outside sellers.

在舉措方面，隨著我們進入一年中最繁忙的時期，我們對取得的進展感到高興。我們繼續與中小型客戶一起成長，推動自有品牌增長，並通過我們的運輸管理系統改善我們的入境貨運成本，所有這些都有助於我們擴大毛利率。我們正在通過增強的合作夥伴計劃、西班牙裔營銷計劃以及利用最近安裝的 Salesforce CRM 來推動由 900 多名內部和外部賣家組成的團隊實現更強勁的銷售和更高的生產力，從而推動有機增長。

Continued rollout of MobilePro and dispatch track allows us to offer better customer service while also increasing the productivity of our branch staff and delivery fleet, continue to ramp-up our digital sales and other customer activities through siteone.com, which makes our customers and associates more productive and helps us to gain market share.

持續推出 MobilePro 和調度軌道使我們能夠提供更好的客戶服務，同時提高我們的分支機構員工和送貨車隊的生產力，通過 siteone.com 繼續加強我們的數字銷售和其他客戶活動，這使我們的客戶和員工提高生產力並幫助我們獲得市場份額。

Finally, our operational excellence teams are systematically spreading best practices in each line of business across SiteOne to drive value for our customers, suppliers and company. Taken all together, we have significantly improved our capability to perform through the potential headwinds of 2023. On the acquisition front, we added 2 high-performing companies to our family so far this year, adding approximately $40 million of trailing 12-month sales to SiteOne.

最後，我們的卓越運營團隊正在 SiteOne 的各個業務領域系統地傳播最佳實踐，為我們的客戶、供應商和公司創造價值。總而言之，我們顯著提高了應對 2023 年潛在逆風的能力。在收購方面，今年迄今為止，我們在家族中新增了 2 家表現出色的公司，為我們的過去 12 個月銷售額增加了約 4000 萬美元。站點一。

Following a record number of acquisitions in 2022, our expanded development team remains very active and engaged with our pipeline of targets, and we expect to have another robust acquisition year in 2023. With an experienced team, broad and deep relationships with the best companies, a strong balance sheet and an exceptional reputation, we remain well positioned to grow consistently through acquisition this year and for many years to come.

繼 2022 年創紀錄的收購數量之後，我們擴大的開發團隊仍然非常活躍並致力於我們的目標管道，我們預計 2023 年將迎來又一個強勁的收購年。憑藉經驗豐富的團隊，與最好的公司建立了廣泛而深入的關係，憑藉強大的資產負債表和卓越的聲譽，我們仍然處於有利位置，可以通過今年和未來許多年的收購實現持續增長。

In summary, we are off to a good start in navigating the more challenging market conditions in 2023. I'm pleased with our progress and remain confident in our ability to execute our initiatives and deliver increased value to our customers and suppliers while outperforming the market.

總之，我們在應對 2023 年更具挑戰性的市場條件方面有了一個良好的開端。我對我們​​的進展感到滿意，並對我們執行計劃、為客戶和供應商提供更高價值、同時跑贏市場的能力充滿信心。

Now John will walk you through the quarter in more detail. John?

現在約翰將帶您更詳細地了解本季度。約翰？

Thanks, Doug. I'll begin on Slide 9 with some highlights of our first quarter results. We reported a net sales increase of 4% to $837 million for the quarter. There were 64 selling days in the first quarter, which is 1 less day than we had in the first quarter of 2022.

謝謝，道格。我將從幻燈片 9 開始介紹我們第一季度業績的一些亮點。我們報告本季度淨銷售額增長 4%，達到 8.37 億美元。第一季度有 64 個銷售日，比 2022 年第一季度少了 1 天。

Organic daily sales decreased by 2% in the first quarter as sales volume was negatively impacted by weather and moderating economic conditions. Price inflation contributed approximately 6% to organic daily sales growth for the quarter. As we discussed last quarter, we are seeing less price inflation as we comp the large price increases of last year and the cost for products like fertilizer and PVC pipe decrease. For the full year, we continue to expect price inflation in the low single-digits, with the majority of it realized in the first half of the year.

由於銷量受到天氣和經濟狀況放緩的負面影響，第一季度有機日銷售額下降了 2%。價格上漲對本季度日有機銷售額增長的貢獻約為 6%。正如我們上季度所討論的，我們看到價格通脹有所放緩，因為我們對比了去年價格的大幅上漲，並且化肥和 PVC 管等產品的成本下降了。就全年而言，我們繼續預計物價通脹率將保持在較低的個位數，其中大部分是在今年上半年實現的。

Volume declined 8% for the first quarter as cold and rainy weather in our Western and Northern markets reduced demand. Western markets and especially California were negatively impacted by unprecedented precipitation during the quarter. Organic daily sales for California, one of the largest landscaping markets in the U.S. were down 21%. Organic daily sales in our northern markets were also negatively impacted by weather as the late start to spring, delayed fertilizer applications, and limited snow and ice events, reduced demand for ice melt. Fortunately, we have a geographically diverse customer base and the negative sales growth in Western and Northern markets was partially offset by solid growth in our Southern markets. As Doug mentioned, we have seen a sales pick up in April with drier conditions in the West and the start of spring in the North.

由於西部和北部市場的寒冷多雨天氣減少了需求，第一季度銷量下降了 8%。西方市場，尤其是加利福尼亞州，在本季度受到前所未有的降水的負面影響。美國最大的園林綠化市場之一加利福尼亞州的有機日銷售額下降了 21%。北方市場的有機日銷量也受到天氣的負面影響，因為開春較晚、施肥推遲、冰雪天氣有限，導致融冰需求減少。幸運的是，我們擁有分佈廣泛的客戶群，西部和北部市場的銷售負增長部分被南部市場的強勁增長所抵消。正如 Doug 提到的，我們看到四月份的銷售有所回升，西部地區天氣乾燥，北部地區春天開始。

Organic daily sales for landscaping products, which includes irrigation, nursery, hardscapes, outdoor lighting and landscape accessories grew 1% for the first quarter as price inflation and strong sales in Southern markets more than offset the reduced volume resulting from the unfavorable weather and moderating economic conditions. Organic daily sales growth for agronomic products, which includes fertilizer, control products, ice melt and equipment, decreased 9% for the quarter due to the slow start to spring, moderating economic conditions and reduced sales of ice melt products. We are pleased with the performance of our acquisitions in the first quarter, acquisition sales, which reflect the sales attributable to acquisitions completed in both 2022 and 2023, contributed approximately $57 million or 7% to net sales growth. Scott will provide more details regarding our acquisition strategy later in the call.

第一季度園林綠化產品（包括灌溉、苗圃、硬景觀、戶外照明和景觀配件）的有機日銷售額增長了 1%，原因是價格上漲和南方市場的強勁銷售抵消了不利天氣和經濟放緩導致的銷量減少狀況。由於春季開工緩慢、經濟狀況放緩以及融冰產品銷量減少，包括化肥、控制產品、融冰和設備在內的農產品日有機銷售額增長下降了 9%。我們對第一季度的收購業績感到滿意，收購銷售額（反映了 2022 年和 2023 年完成的收購所產生的銷售額）為淨銷售額增長貢獻了約 5700 萬美元，即 7%。斯科特將在稍後的電話會議中提供有關我們收購策略的更多詳細信息。

Gross profit increased 7% to $287 million for the first quarter compared to $269 million for the prior year period. Gross margin increased 90 basis points to 34.3% as lower freight costs and contributions from acquisitions with higher gross margins offset the absence of the large price realization benefit we realized in the first quarter of 2022. The gross margin benefit from acquisitions was over 100 basis points this quarter, as many of our recent acquisitions specialized in higher gross margin products like mulch and bulk landscape supplies. However, these products also carry more SG&A due to increased handling and transportation costs. As expected, gross margin for our base business was down this quarter as the large price realization benefit in the first quarter of last year was not realized together. Selling, general and administrative expense or SG&A increased 26% to $291 million for the first quarter. The increase in SG&A reflects the impact of acquisitions, cost inflation and incremental investments in operating expenses to support our growth. Acquisitions accounted for over half of the increase in SG&A this quarter. SG&A as a percentage of net sales increased 620 basis points in the quarter to 34.8%. The increase in SG&A as a percentage of net sales primarily reflects increased SG&A investment combined with the low sales in the seasonally slow first quarter.

第一季度毛利潤增長 7%，達到 2.87 億美元，而去年同期為 2.69 億美元。毛利率增長 90 個基點，達到 34.3%，原因是運費成本降低以及毛利率較高的收購帶來的貢獻抵消了我們在 2022 年第一季度實現的大幅價格實現收益的缺失。收購帶來的毛利率收益超過 100 個基點本季度，我們最近的許多收購專門針對毛利率較高的產品，如覆蓋物和散裝景觀用品。然而，由於處理和運輸成本增加，這些產品也承擔更多的SG&A。正如預期的那樣，本季度我們基礎業務的毛利率有所下降，因為去年第一季度的巨大價格實現效益並未同時實現。第一季度銷售、一般和管理費用或 SG&A 增長 26%，達到 2.91 億美元。 SG&A 的增長反映了收購、成本通脹以及支持我們增長的運營支出增量投資的影響。收購佔本季度 SG&A 增長的一半以上。本季度 SG&A 占淨銷售額的百分比增加了 620 個基點，達到 34.8%。 SG&A 占淨銷售額百分比的增長主要反映了 SG&A 投資的增加以及第一季度季節性放緩的低銷售額。

For the first quarter, we reported an income tax benefit of $2.7 million compared to income tax expense of $4.6 million in the prior year period. The effective tax rate was 37.5% for the first quarter of 2023 compared to 12.5% for the prior year period. The change in the effective tax rate was primarily due to a decrease in net income before taxes, to a net loss before taxes and a decrease in the amount of excess tax benefits from stock-based compensations. Excess tax benefits of $0.8 million were recognized for the first quarter of 2023 compared to $5 million for the prior year period. We expect the 2023 fiscal year effective tax rate will be between 25% and 26%, excluding discrete items such as excess tax benefits. We recorded a net loss of $4.5 million for the first quarter of 2023 compared to net income of $32.3 million for the prior year period as higher net sales and gross margin were offset by the increase in SG&A expense.

第一季度，我們報告的所得稅收益為 270 萬美元，而上年同期所得稅支出為 460 萬美元。 2023 年第一季度的有效稅率為 37.5%，而上年同期為 12.5%。有效稅率的變化主要是由於稅前淨利潤減少、稅前淨虧損以及股票補償帶來的超額稅收優惠金額減少。 2023 年第一季度確認了 80 萬美元的超額稅收優惠，而上年同期為 500 萬美元。我們預計 2023 財年的有效稅率將在 25% 至 26% 之間，不包括超額稅收優惠等離散項目。 2023 年第一季度，我們錄得淨虧損 450 萬美元，而上年同期淨利潤為 3230 萬美元，原因是淨銷售額和毛利率的增加被 SG&A 費用的增加所抵消。

Our weighted average diluted share count was $45 million compared to $45.9 million for the prior year period. The shares used in the calculation of diluted EPS this quarter to negatively impact to any dilutive securities as the inclusion would decrease the net loss per common share. Adjusted EBITDA decreased by 41% to $39.8 million for the first quarter compared to $67.8 million for the same period in the prior year. Adjusted EBITDA margin decreased 360 basis points to 4.8%.

我們的加權平均稀釋後股票數量為 4500 萬美元，而去年同期為 4590 萬美元。用於計算本季度稀釋每股收益的股票將對任何稀釋性證券產生負面影響，因為將其納入將減少每股普通股的淨虧損。第一季度調整後 EBITDA 下降 41%，至 3980 萬美元，而去年同期為 6780 萬美元。調整後 EBITDA 利潤率下降 360 個基點至 4.8%。

Now I'd like to provide a brief update on our balance sheet and cash flow statement as shown on Slide 10. Net working capital at the end of the first quarter was $916 million compared to $788 million at the end of the prior year period. The increase in net working capital is primarily attributable to our seasonal build in inventory in preparation for the spring selling season, new acquisitions and the impact of inflation. Cash used in operations increased to approximately $153 million in the first quarter compared to approximately $118 million the prior year period. The increase in cash used in operations was primarily due to our decline in net income and a higher seasonal investment in working capital. We made cash investments of approximately $40 million for the first quarter compared to approximately $41 million for the same quarter of 2022. The decrease reflects a small decline in acquisition investment in the first 3 months of 2023 compared to the same period of 2022.

現在我想提供幻燈片 10 所示的資產負債表和現金流量表的簡要更新。第一季度末的淨營運資本為 9.16 億美元，而上年末的淨營運資本為 7.88 億美元。淨營運資本的增加主要歸因於我們為春季銷售季節做準備而季節性增加的庫存、新收購以及通貨膨脹的影響。第一季度運營中使用的現金增加至約 1.53 億美元，而去年同期約為 1.18 億美元。運營中使用的現金增加主要是由於我們的淨利潤下降和營運資本的季節性投資增加。我們第一季度進行了約 4000 萬美元的現金投資，而 2022 年同期約為 4100 萬美元。這一下降反映出 2023 年前 3 個月的收購投資與 2022 年同期相比略有下降。

Net debt at the end of the quarter was approximately $586 million compared to approximately $417 million at the end of the first quarter of 2022. Leverage increased to 1.3x our trailing 12-month adjusted EBITDA compared to 0.9x at the end of the first quarter last year. The higher leverage primarily reflects increased borrowings to fund our investment in acquisitions and increased working capital. As a reminder, our target year-end net debt to adjusted EBITDA leverage range is 1x to 2x. At the end of the quarter, we had available liquidity of approximately $313 million, which consisted of approximately $40 million of cash on hand and approximately $273 million in available capacity under our ABL facility.

本季度末的淨債務約為 5.86 億美元，而 2022 年第一季度末約為 4.17 億美元。槓桿率增加至過去 12 個月調整後 EBITDA 的 1.3 倍，而第一季度末為 0.9 倍去年。較高的槓桿率主要反映了為收購投資提供資金的借款增加和營運資本增加。提醒一下，我們的目標年終淨債務與調整後 EBITDA 槓桿範圍是 1 倍到 2 倍。截至本季度末，我們的可用流動資金約為 3.13 億美元，其中包括約 4000 萬美元的庫存現金和 ABL 設施下約 2.73 億美元的可用容量。

I will now turn the call over to Scott for an update on our acquisition strategy.

我現在將把電話轉給斯科特，詢問我們收購策略的最新情況。

Thanks, John. As shown on Slide 11, we acquired 2 companies in the first quarter with a combined trailing 12-month net sales of approximately $40 million. Since 2014, we have acquired 82 companies with approximately $1.5 billion in trailing 12-month net sales added to SiteOne.

謝謝，約翰。如幻燈片 11 所示，我們在第一季度收購了 2 家公司，過去 12 個月的淨銷售額合計約為 4000 萬美元。自 2014 年以來，我們收購了 82 家公司，SiteOne 過去 12 個月的淨銷售額增加了約 15 億美元。

Turning to Slides 12 and 13, you will find information on our most recent acquisitions. On March 14, we acquired J&J Materials with 5 locations focused on providing hardscapes and bulk landscape supplies to the Rhode Island and Southeastern Massachusetts markets. This acquisition complements our prior acquisition of another regional hardscape leader, Cape Cod Stone.

翻到幻燈片 12 和 13，您將找到有關我們最近收購的信息。 3 月 14 日，我們收購了 J&J Materials，該公司擁有 5 個地點，專注於為羅德島州和馬薩諸塞州東南部市場提供硬景觀和大宗景觀用品。此次收購是對我們之前對另一家地區硬景觀領導者 Cape Cod Stone 的收購的補充。

On March 28, we acquired Triangle landscape supplies with 4 locations providing bulk landscape supply and hardscapes to landscape contractors in the Raleigh-Durham market. These acquisitions add terrific talent to SiteOne and move us forward toward our goal of providing a full line of landscape products and services to our customers in all major U.S. and Canadian markets.

3 月 28 日，我們收購了 Triangle 景觀供應商，該公司擁有 4 個地點，為羅利-達勒姆市場的景觀承包商提供批量景觀供應和硬景觀。這些收購為 SiteOne 增添了優秀的人才，並推動我們朝著為美國和加拿大所有主要市場的客戶提供全系列景觀產品和服務的目標前進。

Summarizing on Slide 14, our acquisition strategy continues to create significant value for SiteOne. With a strong balance sheet and a robust pipeline across all lines of business and geographies. We are confident that we will be able to add many more outstanding companies to SiteOne during the year. I want to thank the entire SiteOne team for their passion and commitment to making SiteOne a great place to work and for welcoming the newly acquired teams when they joined the SiteOne family. I am confident in our ability to keep adding more outstanding companies through acquisition as we move through 2023, creating terrific value for all of our stakeholders.

總結幻燈片 14，我們的收購策略繼續為 SiteOne 創造重大價值。擁有強大的資產負債表和跨越所有業務線和地區的強大管道。我們有信心在這一年裡能夠為 SiteOne 添加更多優秀的公司。我要感謝整個 SiteOne 團隊的熱情和承諾，使 SiteOne 成為一個理想的工作場所，並感謝新收購的團隊加入 SiteOne 大家庭。我相信，在 2023 年，我們有能力通過收購不斷增加更多優秀公司，為所有利益相關者創造巨大價值。

I will now turn the call back to Doug.

我現在將把電話轉回道格。

Thanks, Scott. I'll wrap up on Slide 15. Our outlook for 2023 remains largely the same as it was during our last Earnings Call in February. As John mentioned, we have seen inflation continue to moderate. And we expect that to continue with flat prices in the second half, yielding low single-digit inflation for the full year.

謝謝，斯科特。我將在幻燈片 15 上進行總結。我們對 2023 年的展望與 2 月份上次財報電話會議時的展望基本相同。正如約翰提到的，我們看到通脹繼續放緩。我們預計下半年物價將繼續保持平穩，全年通脹率將保持在個位數低水平。

In terms of end markets, we continue to expect a decline in new residential construction which comprises 21% of our sales. That is offset by flat-to-modest growth in the more resilient maintenance, repair and upgrade and new commercial construction end markets. Note that we have not yet seen any negative effects on commercial construction driven by the recent banking crisis. Good backlogs and healthy bidding, we believe this market, which represents 14% of our sales, could grow slightly versus the prior year. In total, we expect industry sales to decline in 2023 and with our ability to gain market share, we would continue to expect our organic daily sales to be flat to down mid-single digits with modest price inflation being offset by reduced volume.

就終端市場而言，我們繼續預計占我們銷售額 21% 的新住宅建設將下降。這被更具彈性的維護、修理和升級以及新商業建築終端市場的持平至溫和增長所抵消。請注意，我們尚未看到近期銀行危機對商業建築造成任何負面影響。良好的積壓和良好的投標，我們相信這個占我們銷售額 14% 的市場可能會比去年略有增長。總的來說，我們預計 2023 年行業銷售額將下降，並且隨著我們獲得市場份額的能力，我們將繼續預計我們的有機日銷售額將持平至中個位數，適度的價格上漲將被銷量減少所抵消。

We expect our gross margin to normalize this year without the substantial benefit that we saw from strategic inventory purchases ahead of rapid inflation in 2021 and 2022. Additionally, with flat to declining sales, we expect SG&A as a percentage of sales for our base business to increase modestly. We expect acquisitions to benefit gross margin but also increased SG&A as a percent of net sales. Decrease in gross margin and increased SG&A as a percent of net sales, we expect adjusted EBITDA margin to normalize in 2023, providing the foundation for further improvement over the longer term.

我們預計今年的毛利率將正常化，而不會像 2021 年和 2022 年快速通脹之前的戰略庫存採購那樣帶來實質性好處。此外，由於銷售額持平甚至下降，我們預計 SG&A 占我們基礎業務銷售額的百分比將達到適度增加。我們預計收購將有利於毛利率，同時也會增加銷售、管理費用占淨銷售額的百分比。由於毛利率下降，SG&A 占淨銷售額的比例增加，我們預計調整後的 EBITDA 利潤率將在 2023 年恢復正常，為長期的進一步改善奠定基礎。

In terms of acquisitions, as Scott mentioned, we have a strong pipeline of high-quality companies and look forward to adding more of these to the SiteOne family in 2023. Our acquisitions are performing well, and we continue to improve our ability to integrate them into our company. Accordingly, we expect acquisitions to contribute strongly to our performance and growth during the year. With all these factors in mind, we are maintaining our full year guidance and anticipate our fiscal 2023 adjusted EBITDA to be in the range of $395 million to $425 million. This range does not factor any contribution from unannounced acquisitions.

在收購方面，正如 Scott 提到的，我們擁有強大的優質公司儲備，並期待在 2023 年將更多這些公司添加到 SiteOne 家族中。我們的收購表現良好，我們將繼續提高整合它們的能力進入我們公司。因此，我們預計收購將對我們今年的業績和增長做出巨大貢獻。考慮到所有這些因素，我們維持全年指引，並預計 2023 財年調整後 EBITDA 將在 3.95 億美元至 4.25 億美元之間。該範圍並未考慮未經宣布的收購的任何貢獻。

In closing, I would like to sincerely thank all our SiteOne associates who continue to amaze me with their passion, commitment, teamwork and selfless service. We have a tremendous team, and it's an honor to be joined with them as we deliver increasing value for all our stakeholders. I would also like to thank our suppliers for supporting us so strongly and our customers for allowing us to be their partner.

最後，我要真誠地感謝所有 SiteOne 員工，他們的熱情、奉獻、團隊合作和無私服務繼續讓我驚嘆不已。我們擁有一支優秀的團隊，很榮幸能夠與他們一起為所有利益相關者提供不斷增長的價值。我還要感謝我們的供應商對我們的大力支持，以及我們的客戶允許我們成為他們的合作夥伴。

Operator, please open the line for questions.

接線員，請開通提問線路。

(Operator Instructions) And our first question comes from David Manthey with Baird.

（操作員說明）我們的第一個問題來自 David Manthey 和 Baird。

First off, a clarifying question. You said that average daily sales were down 2% in the first quarter. But then I think you said that year-to-date through April, they were plus 1%. I just want to be clear on that.

首先，澄清一個問題。您說第一季度日均銷售額下降了 2%。但我想你說過今年迄今到 4 月份，它們的增長率為 1%。我只是想澄清這一點。

Yes, that's correct. .

對，那是正確的。 。

Okay. And so I mean April sales volumes would be higher than January, February, March, but that's still an encouraging sign. And I guess that leads to the question here that sometimes inclement weather leads to sales that are completely missed. And then other times, these sales are just simply delayed, pushed to the right. Could you characterize the first quarter weather-affected geographies and the nature of those sales? .

好的。所以我的意思是四月份的銷量將高於一月、二月和三月，但這仍然是一個令人鼓舞的跡象。我想這引出了一個問題：有時惡劣的天氣會導致銷售完全被錯過。而其他時候，這些銷售只是簡單地延遲，推到了右邊。您能否描述一下第一季度受天氣影響的地區以及這些銷售的性質？ 。

Yes. So you're correct in the first and second quarter kind of split, spring starts at the end of the first quarter and rolls into the second. So often you can get more sales into the first or less and more into the second. And we would characterize that weather dynamic is mostly that in our Northern markets, for instance, where spring kind of came later than in 2022. We're seeing the robust sales come in, the fertilizer applications get done. And we don't think we missed anything. And as we mentioned, as a company as a whole, we've kind of largely made that up. One area where we might not make it up is California and the West. It's been very wet. That's an all-weather market. And so there's been several months of just really record rainfall, and we probably won't make all of that go. But in the scheme of things, the weather has moved sales around, but we think it's still all to play for this year. .

是的。所以你在第一季度和第二季度的劃分中是正確的，春天從第一季度末開始並進入第二季度。通常，您可以在第一個方面獲得更多的銷售額，或者在第二個方面獲得較少的銷售額和更多的銷售額。我們認為天氣動態主要是在我們的北方市場，例如，那裡的春天比 2022 年來得晚。我們看到銷售強勁，施肥也完成了。我們不認為我們錯過了什麼。正如我們所提到的，作為一個整體的公司，我們基本上已經彌補了這一點。我們可能無法彌補的一個地區是加利福尼亞州和西部地區。天氣已經很濕了。這是一個全天候市場。因此，已經有幾個月的降雨量創下歷史新高，我們可能無法實現這一切。但從總體上看，天氣影響了銷售，但我們認為今年的銷售仍將繼續發揮作用。 。

Okay. That's helpful. And then second, on the gross margin guidance back in February of this year, you said 34% to 34.5%. Now you're saying higher than previously thought. Given that you're not changing your EBITDA guidance, I guess that naturally assumes higher SG&A. Could you talk about the sources of upside to operating expenses? .

好的。這很有幫助。其次，關於今年 2 月份的毛利率指導，您說是 34% 到 34.5%。現在你說的比以前想像的要高。鑑於您沒有改變 EBITDA 指導，我想這自然會假設更高的 SG&A。您能談談運營費用上漲的來源嗎？ 。

Yes. Along with regards to SG&A and just SG&A in general, I think what we've seen is kind of the roll-in of these acquisitions that have higher SG&A. That's one kind of a mix issue that's driving our SG&A. A I think also, if you look at kind of year-over-year, the increase in Q1 is especially accentuated as a percentage of sales, obviously, because of the low sales value, but also most of the hiring that we're seeing in the comp is -- was really done last spring in 2022. So as we start comping year-over-year, the difference goes down. We've also taken in certain markets. We've already taken actions to address some of the challenges that we're having with sales. And then also, I would say, in general, we're not doing any hiring even and much hiring across the board at all, given the uncertainty in the marketplace. So certainly areas where we can take actions, I'm pleased with the sales growth that we're seeing in April by monitoring it closely.

是的。除了 SG&A 以及一般的 SG&A 之外，我認為我們看到的是這些具有更高 SG&A 的收購的滾動。這是推動我們的 SG&A 的混合問題之一。答：我還認為，如果你看一下同比情況，第一季度的增長佔銷售額的百分比尤其突出，顯然是因為銷售價值較低，而且我們看到的大部分招聘也是如此。該比較實際上是在 2022 年春天完成的。因此，當我們開始逐年比較時，差異就會縮小。我們還佔領了某些市場。我們已經採取行動來解決銷售方面遇到的一些挑戰。然後，我想說，總的來說，考慮到市場的不確定性，我們根本沒有進行任何招聘，甚至根本沒有全面招聘。因此，當然，在我們可以採取行動的領域，我對我們通過密切監控在 4 月份看到的銷售增長感到滿意。

Our next question comes from Ryan Merkel with William Blair.

我們的下一個問題來自瑞安·默克爾和威廉·布萊爾。

Two questions from me, 1 on sales and then 1 on gross margin. So first on sales, can you just tell us what April organic growth was? And then I'm curious, when you talk to contractors, the resi contractors, what are they telling you in terms of backlog and bookings? Because it feels to me like things are tracking pretty well and maybe there's a bit of upside to guidance for sales. .

我問了兩個問題，1 個關於銷售額，1 個關於毛利率。首先關於銷售，您能告訴我們四月份的有機增長是多少嗎？然後我很好奇，當您與承包商、Resi 承包商交談時，他們在積壓和預訂方面告訴您什麼？因為我覺得事情進展得很好，也許銷售指導有一些好處。 。

Yes. So in April, we're kind of in high single digits in terms of sales in April. So we're pleased with that. In terms of the builders, we're still calling the market to be down. But we would agree that the builders, they seem to be a bit more confident than they say would have been 3 to 6 months ago. And we'll see how it plays out. But it seems like that market could be a little more resilient than we thought it was going to be. And the builders, they're still -- again, we're still calling that market down. But I would say net-net, there probably is a little more confidence than, again, we would have seen or we would have heard from them 3 to 6 months ago.

是的。因此，四月份的銷售額處於較高的個位數。所以我們對此感到滿意。就建築商而言，我們仍然認為市場會下跌。但我們同意，建築商們似乎比 3 到 6 個月前所說的更有信心了。我們將看看結果如何。但市場似乎可能比我們想像的更有彈性。而建築商，他們仍然——我們仍然認為市場下跌。但我想說的是，我們可能比 3 到 6 個月前看到的或聽到的更有信心。

And is it relates to the maintenance part of the business for resi? I think last year, you said inflation was sort of impacting budget a bit. Have you seen that sort of normalize?

是否與RESI業務的維護部分有關？我想去年，您說過通貨膨脹對預算有一定影響。你見過這種正常化嗎？

I wouldn't say we've really seen that yet. We are seeing, obviously, that's been one of the growth areas here in April. The weather paid a major role in Q1 with regards to kind of our agronomic sales, monitoring it closely, but -- and we have seen, obviously, a recovery in April, but weather year-over-year, we're going to be up or down, watching that right now.

我不會說我們已經真正看到了這一點。顯然，我們看到這是四月份的增長領域之一。天氣在第一季度對我們的農產品銷售發揮了重要作用，密切監測它，但是 - 我們顯然已經看到 4 月份的複蘇，但與去年同期相比，天氣情況將是向上或向下，現在就看。

Got it. Okay. And then on gross margins, could you just unpack the freight upside? Is that lower fuel? Is it supply chain normalizing, so that's helping costs? And then how much do you think freight will end up helping you for the year, not relative to what you thought 3 months ago?

知道了。好的。那麼在毛利率方面，你能不能分析一下運費的上升趨勢？那個油耗低嗎？供應鏈正常化是否有助於降低成本？那麼，與您 3 個月前的想法相比，您認為今年貨運最終會給您帶來多少幫助？

So in general, it's a combination of both. I think we're managing our freight better from that standpoint is, when we talk about this, it is primarily inbound freight from that perspective. Year-to-date, in Q1, it was approximately a 40 basis point positive pickup year-over-year in our Q1 results. We're optimistic that going into the year without being that freight will be a positive. We had some of that built into kind of our existing numbers, but we would expect for the full year. I think the market has even gotten better since we gave original guidance.

所以總的來說，它是兩者的結合。我認為從這個角度來看，我們正在更好地管理我們的貨運，當我們談論這個問題時，從這個角度來看，它主要是入境貨運。年初至今，第一季度業績同比增長約 40 個基點。我們樂觀地認為，今年沒有貨運量將是積極的。我們將其中的一些內容納入了我們現有的數字中，但我們預計全年都會有這樣的情況。我認為自從我們給出最初的指導以來，市場甚至變得更好了。

Our next question comes from Matthew Bouley with Barclays.

我們的下一個問題來自巴克萊銀行的 Matthew Bouley。

Just on the gross margin, again, I guess I want a clarifying point. I think you said that acquisitions contributed 100 basis points to the gross margin in the quarter. I'm just curious if you could unpack that a little bit, just given that I think you had something like $55 million to $60 million of acquired sales? So it seems like a big margin would be applied to those. And just more broadly, if you can just kind of step back and kind of update us on where you expect gross margin to settle out for the full year?

就毛利率而言，我想我再次需要澄清一點。我想你說過收購為本季度的毛利率貢獻了 100 個基點。我只是好奇你能否稍微解釋一下這個問題，因為我認為你的收購銷售額約為 5500 萬至 6000 萬美元？因此，似乎這些產品將獲得很大的利潤。更廣泛地說，您是否可以退後一步，向我們介紹一下您預計全年毛利率的最新情況？

Yes. So what we're seeing with regards to some of the acquisitions, it's really kind of a product mix issue these acquisitions, say, for instance, bring in and higher gross margins and higher SG&A. I would think on an adjusted EBITDA basis, not too much of an issue. But for certain products, like Mulch for an existence relatively low cost. So the cost of handling and transportation is very high. Thinking about the SG&A, but the actually, product margin is relatively high, which is driving what we're seeing here. With regards to for the full year, we previously talked 34% to 34.5%, we're probably 34% to 35% now would probably be a better full year number. As a top previously pointed out, our SG -- EBITDA margin, our guidance hasn't really changed. So there may be some slightly higher SG&A coming along with that.

是的。因此，我們在一些收購中看到，這實際上是產品組合問題，例如，這些收購帶來了更高的毛利率和更高的銷售管理費用。我認為在調整後的 EBITDA 基礎上，這並不是什麼大問題。但對於某些產品，例如護根物，其成本相對較低。所以搬運和運輸的成本非常高。考慮銷售管理費用，但實際上，產品利潤率相對較高，這推動了我們在這裡看到的情況。至於全年，我們之前討論過 34% 到 34.5%，現在可能是 34% 到 35%，這可能是一個更好的全年數字。正如一位高層之前指出的那樣，我們的 SG——EBITDA 利潤率，我們的指導並沒有真正改變。因此，隨之而來的SG&A 可能會稍高一些。

Got it. Okay. And then so I guess on that point, following to the SG&A side, so it sounds like you're kind of shifting 50 basis points towards gross margin and away from SG&A. I think on a dollar basis, SG&A was up something like $60 million in the quarter. You said acquisitions were more than half of that. How should we think about kind of the dollar spend on SG&A as we as we run through the year. Is that kind of $60 million per quarter, the right run rate? Or presumably you're expecting that to decelerate meaningfully. So how -- a little more color on what you're doing to kind of decelerate that SG&A spending increase?

知道了。好的。然後我想在這一點上，遵循 SG&A 方面，所以聽起來您似乎將 50 個基點轉向毛利率，而不是 SG&A。我認為，以美元計算，本季度的 SG&A 增加了 6000 萬美元左右。你說收購佔其中一半以上。當我們全年運行時，我們應該如何考慮SG&A 上的美元支出。每季度 6000 萬美元的運行率合適嗎？或者你可能期望這種速度會顯著減速。那麼如何——對你正在做的事情進行更多的描述，以減緩 SG&A 支出的增長呢？

Yes. So the -- and all this is predicated on us not the future acquisitions that will obviously contribute to this. But all things considered, we would expect the $60 million as we start to comp on some of the acquisitions we did last year that, that would probably be potentially 50% of the increase for the full year, and that would go down quarter by quarter with regards to it. Sequentially, we always -- Q2 was always higher than Q1, but Q2, Q3 and Q4 historically have been relatively flat with regards to SG&A from a historical basis. And we're forecasting a similar number, relatively flat after this quarter.

是的。因此，所有這一切都取決於我們，而不是未來顯然會對此做出貢獻的收購。但考慮到所有因素，我們預計 6000 萬美元是我們去年進行的一些收購的比較，這可能是全年增長的 50%，而且會逐季度下降關於它。接下來，我們總是——第二季度總是高於第一季度，但從歷史的角度來看，第二季度、第三季度和第四季度的銷售管理、行政管理費用一直相對持平。我們預測本季度之後的數字類似，相對持平。

And John, when we're talking about acquisitions, we're talking about acquisitions that were completed in 2022 and through 2023, right?

約翰，當我們談論收購時，我們談論的是 2022 年至 2023 年完成的收購，對嗎？

Right, right.

是的是的。

You've got the whole set there, which brings that higher SG&A into the company.

你已經擁有了整套設備，這為公司帶來了更高的SG&A。

(Operator Instructions) And our first question comes from Mike Dahl with RBC Capital Markets.

（操作員說明）我們的第一個問題來自 RBC 資本市場的 Mike Dahl。

This is actually Chris calling on for Mike. Just moving over to the pricing side. How much of a headwind was lower PVC and fertilizer pricing for you this quarter? And how are you guys thinking about the magnitude of that headwind on a year-over-year basis evolving through the rest of the year?

這實際上是克里斯在為邁克打電話。只是轉向定價方面。本季度 PVC 和化肥價格下降給您帶來了多大的阻力？你們如何看待今年剩餘時間裡逐年演變的逆風的嚴重程度？

Well, it will be a headwind for the rest of the year. I mean, both of those items contributed were negative year-over-year in Q1, and March was a greater. There's still year-over-year on a percentage basis, they're still in -- on a year-over-year basis, there's still, I would say, mid- to low single digits down contribution. So from that standpoint. But I think if you look sequentially, it would be greater than that because prices rose throughout the year, last year. So, so far this year, negative growth. But on a year-over-year basis, in Q1, they were low to mid-single digits down.

好吧，這將是今年剩餘時間的逆風。我的意思是，這兩個項目在第一季度的同比貢獻都為負，而三月份的貢獻更大。從百分比來看，他們仍然在同比基礎上，我想說，在同比基礎上，仍然有中低個位數的下降貢獻。所以從這個角度來看。但我認為，如果你按順序看，它會比這個更大，因為去年價格全年上漲。所以，今年到目前為止，是負增長。但與去年同期相比，第一季度的增長率為低至中個位數下降。

Got it. And just going back to the organic daily sales comments in April, how much of the high single-digit growth was price versus volume? And is there a way to think about how much of the volume contribution of that high single digit was just kind of weather delayed projects versus just non-weather impacted? And then just lastly on that, is 15% of sales still kind of a good number to use in terms of April's contribution to full year sales?

知道了。回到四月份的有機每日銷售評論，高個位數增長中有多少是價格與銷量的關係？有沒有一種方法可以考慮這個高個位數的數量貢獻有多少只是天氣延遲的項目與非天氣影響的項目？最後，就 4 月份對全年銷售額的貢獻而言，15% 的銷售額仍然是一個不錯的數字嗎？

Yes. Well, on the first question, I think the way to think about it is, April has been built into that high single-digit growth. There's some catch-up from the first quarter. So if you look at the 1% year-to-date, that's probably a better number to index on. And there's some inflation on that balanced with net negative volume growth. And so by nature, the April number would be less inflation, more volume to get to that 1%, which is a combination of the 2. And what was the second question, what was the second question?

是的。嗯，關於第一個問題，我認為思考的方式是，四月份已經形成了高個位數的增長。與第一季度相比，有一些追趕。因此，如果你看看今年迄今為止的 1%，這可能是一個更好的索引數字。並且存在一定的通貨膨脹與淨負銷量增長相平衡。因此，從本質上講，4 月份的數字將是更少的通貨膨脹，更多的交易量，以達到 1%，這是 2 的組合。第二個問題是什麼？第二個問題是什麼？

Yes. Just it's -- I think in the past, you said kind of April monthly contribution to full year sales is around 15%. Is that still kind of a good number to use? Or has kind of [shift have] affected that at all?

是的。只是——我想在過去，您說過 4 月份對全年銷售額的貢獻約為 15%。這仍然是一個好用的數字嗎？或者某種[轉變]對此產生了影響？

Yes. I would say it's probably 13% to 15%.

是的。我想說可能是13%到15%。

And our next question comes from Keith Hughes with Truist Securities.

我們的下一個問題來自 Truist Securities 的 Keith Hughes。

So we've talked a lot about SG&A in this call. And some of the statements, I'm trying to hard (inaudible), let me just ask it this way, as a percentage of sales under your guidance, what do you think SG&A will look like by the end of the year?

因此，我們在這次電話會議中討論了很多關於 SG&A 的問題。對於一些陳述，我正在努力（聽不清），讓我這樣問一下，作為在您指導下的銷售額的百分比，您認為到今年年底 SG&A 會是什麼樣子？

Why do we think SG&A will look like -- look like how, could you clarify that?

為什麼我們認為 SG&A 會是這樣的，你能澄清一下嗎？

As a percentage of sales, in the guidance range you've given, what roughly do you think we're looking at?

在您給出的指導範圍內，您認為我們大致關注的是銷售額的百分比？

Well, we're not going to specifically forecast out SG&A as a percentage of sales. I mean, we think it will delever. So it will be higher than previously. I would kind of back into that number from our EBITDA guidance. Yes.

嗯，我們不會具體預測 SG&A 佔銷售額的百分比。我的意思是，我們認為它將去槓桿化。所以會比以前更高。我想回顧一下我們的 EBITDA 指導中的這個數字。是的。

Okay. Let me switch over to previous question about fertilizer. What are you hearing from suppliers in terms of do we have a lot more deflation coming than we've already seen? What's the market thinking on that?

好的。讓我轉到之前關於肥料的問題。您從供應商那裡得知，我們即將面臨的通貨緊縮是否比我們已經看到的要嚴重得多？市場對此有何看法？

Well, As we've seen a lot of deflation, I don't know if their people are thinking that there will be additional. But obviously, if you look at raw material prices right now, they're down significantly. I think there are even pre-COVID levels. So their fertilizer prices have come down a lot from that standpoint. I think kind of we feel as if kind of where they're at now, it's kind of where we would carry them forward. But we'll have to see, obviously, that's a commodity and highly volatile.

嗯，由於我們已經看到了很多通貨緊縮，我不知道他們的人民是否認為還會有額外的通貨緊縮。但顯然，如果你現在看看原材料價格，就會發現它們大幅下降。我認為甚至還有新冠疫情之前的水平。所以從這個角度來看，他們的化肥價格已經下降了很多。我認為我們感覺好像他們現在所處的位置，這就是我們將帶領他們前進的地方。但顯然，我們必須看到，這是一種商品，而且波動性很大。

Our next question comes from Jeff Stevenson with Loop Capital Markets.

我們的下一個問題來自 Loop Capital Markets 的 Jeff Stevenson。

So at a high level, can you talk about the residential R&R bidding environment and what you've been hearing from professional customers about demand expectations through the back half of the year?

那麼，您能否從高層次上談談住宅 R&R 招標環境以及您從專業客戶那裡聽到的有關今年下半年需求預期的信息？

So we're -- our customers are busy. We mentioned that the commercial market is holding up well as our -- the repair and remodel and maintenance markets. And so our customers are busy. They're -- I'd say, the extraordinary backlogs that we saw during COVID have normalized. And I'd say net-net, customers are cautiously optimistic about the second half. They don't have the second half already loaded up in their backlogs, which they would have had in the last couple of years. But I'd say they're cautiously optimistic about what they're seeing in terms of bidding jobs today and what's coming down the pike. We have a project services group that bids. We do put together bids for our customers in the commercial space, and that bidding has been net positive this year versus prior year, up a couple of percent. So that gives us good -- another kind of read into the commercial market. The repair and remodel market is not as backlog-driven. It's more kind of, you get the jobs as you go. So it's harder to get some visibility into the second half in that market. But in terms of commercial, we feel pretty good about how the year is developing.

所以我們——我們的客戶很忙。我們提到商業市場與我們的維修、改造和維護市場一樣表現良好。所以我們的客戶很忙。我想說的是，我們在新冠疫情期間看到的大量積壓已經正常化。我想說的是，客戶對下半年持謹慎樂觀態度。他們的下半年訂單尚未積壓，而在過去的幾年裡，他們可能會遇到這種情況。但我想說，他們對今天的招標工作以及未來的情況持謹慎樂觀的態度。我們有一個負責投標的項目服務小組。我們確實為商業領域的客戶進行了投標，今年的投標與去年相比呈淨正值，上升了幾個百分點。這給我們帶來了好處——另一種解讀商業市場的方式。維修和改造市場並不是由積壓驅動的。更友善的是，你隨走隨走就得到了工作。因此，很難了解該市場的下半年情況。但在商業方面，我們對這一年的發展感到非常滿意。

Okay. Great. That's helpful. And then the M&A pipeline still sounds active. Are you expecting a similar inorganic growth contribution as this past year?

好的。偉大的。這很有幫助。而且併購管道聽起來仍然很活躍。您預計無機增長的貢獻與去年類似嗎？

Well, obviously, it's impossible to predict that exactly. But last year, at this time, we were sitting at 3 acquisitions and $50 million in trailing 12 months acquired. This year. We're at 2 and $40 million. Last year, we had a very strong pipeline. And this year, I would say our pipeline is as good or better. So we feel a good level of confidence that we can contribute a strong amount to overall for SiteOne. I can't predict it precisely though.

嗯，顯然，準確預測這一點是不可能的。但去年這個時候，我們進行了 3 次收購，在過去 12 個月內收購了 5000 萬美元。今年。我們現在是 2 又 4000 萬美元。去年，我們擁有非常強大的渠道。今年，我想說我們的管道同樣好，甚至更好。因此，我們非常有信心能夠為 SiteOne 的整體貢獻做出巨大貢獻。但我無法準確預測。

Our next question comes from Joe Ahlersmeyer with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Joe Ahlersmeyer。

So my first question is on the gross margin. I know we've talked about it a bit. But if I'm thinking about it correctly, your expectations last quarter would have already assumed some of the mix from acquisitions, probably most of the mix benefit year-over-year. And so you were also expecting the inventory profits to roll-. And it seems like that probably happened in the quarter, offset by the freight benefit. So is it right to think as we move from 1Q to 2Q to 3 and 4, you're not going to really see a sequential tick down in margins? We should probably just be sort of steady through the remainder of the year to get to that full year expectation.

所以我的第一個問題是關於毛利率。我知道我們已經談過一些了。但如果我的思考正確的話，你上個季度的預期已經假設了收購帶來的一些組合，可能大部分組合都同比受益。所以你也期望庫存利潤滾動。看起來這可能發生在本季度，被貨運收益所抵消。那麼，當我們從第一季度到第二季度再到第三季度和第四季度時，您不會真正看到利潤率連續下降，這樣的想法是否正確？我們可能應該在今年剩餘時間內保持穩定，以達到全年預期。

I don't know if that's exactly the case. We have -- we're going to have a roll-off of the inventory profits in Q2 also from that standpoint. So that will be somewhat of a -- that will be a headwind in Q2 as we've talked about. In addition, we were to talk about our gross margin. I think acquisitions obviously played the largest component of the -- our outperformance this quarter and drove the company as a total on a consolidated basis higher. We did see negative gross margins in the base business because of that roll-off of the of the inventory profits, if you will, over that price realization benefit we saw last year. That will continue into Q2. I would say, in general, also freight came a little bit higher than expectations in Q1, some of that may continue to Q2. Price cost was also a little bit better, not obviously enough to overcome the price realization benefit in the base business. But in Q2, some of that may -- as we get into the season, some of that outperformance kind of on the positive side, I think we're seeing a little of that kind of go back to where we thought it was going to be. So that will be not a headwind, but kind of falling more into expectations. So I think Q2 could still be a very challenging quarter for us on a year-over-year basis and a gross margin. I would say, in general, the second half of the year, we'll be in a better position as we've talked about previously.

我不知道情況是否確實如此。從這個角度來看，我們也將在第二季度減少庫存利潤。因此，正如我們所討論的，這將在某種程度上成為第二季度的阻力。此外，我們還要談談我們的毛利率。我認為收購顯然是我們本季度優異表現的最大組成部分，並推動公司整體綜合業績走高。我們確實看到基礎業務的毛利率為負，因為庫存利潤的下滑（如果你願意的話）超過了我們去年看到的價格實現效益。這將持續到第二季​​度。我想說，總的來說，第一季度的運費也略高於預期，其中一些可能會持續到第二季​​度。價格成本也稍好一些，但顯然不足以克服基礎業務的價格實現效益。但在第二季度，其中一些可能 - 當我們進入賽季時，一些表現可能會出現積極的一面，我認為我們會看到一些這種情況回到我們認為會發生的地方是。因此，這不會是一種逆風，而是更多地落入期望之中。因此，我認為，從同比和毛利率來看，第二季度對我們來說仍然是一個非常具有挑戰性的季度。我想說，總的來說，今年下半年，我們將處於更好的位置，正如我們之前討論的那樣。

Okay. Great. My second question, if we go back to the organic sales commentary, I imagine you didn't give April necessarily for us to extrapolate, but maybe just to contextualize the first quarter weather impact. So is the better way to kind of get there to think about the second quarter as roughly being 30% or so of your full year dollar sales? Is that sort of in the range of your expectations for 2Q?.

好的。偉大的。我的第二個問題，如果我們回到有機銷售評論，我想你並沒有給出四月份的數據供我們推斷，但也許只是為了將第一季度的天氣影響聯繫起來。那麼，將第二季度的銷售額大約佔全年銷售額的 30% 左右是否是更好的方法呢？這在您對第二季度的預期範圍內嗎？

Yes. I think as the year, it's -- the second and third quarters are typically at $30 a piece, kind of [$60], and then you get [$20] and $20 , roughly in the first -- or the first and fourth.

是的。我認為今年第二和第三季度的價格通常為每件 30 美元，大約是 [60 美元]，然後你會得到 [20 美元] 和 20 美元，大致在第一季度——或者第一季度和第四季度。

Right, roughly.

對了，大概。

Right, plus or minus.

對，加或減。

Our next question comes from Stephen Volkmann with Jefferies.

我們的下一個問題來自杰弗里斯的斯蒂芬·福克曼。

John, I think you mentioned a little bit more seasonal inventory build this year, surprised me a little bit. Can you just comment on that a little bit more?

約翰，我想你提到今年季節性庫存增加了一點，這讓我有點驚訝。您能對此發表更多評論嗎？

Yes. So we went into this year. We did bring in more inventory -- a little bit more inventory. Obviously, price is contributing to that up. I think it's probably 4% or 5% of that increase year-over-year in our base business is due to price. And then the other thing from -- and I'm primarily thinking of this from a cash flow perspective, the other thing that's playing into there, obviously, we brought it in. Those sales in the North were delayed from that perspective. So our spring load, those weather and resulted in slightly higher than I think our original plan was because of those sales were delayed. But in general, I think our goal is to be -- have our store is fully stocked to kind of -- this is kind of a game time, if you will, for our branches and our customers, and we want to be there with the product. But it also allows us, as we get into the second half of the year, the opportunity to optimize that a better, and we think there's an opportunity over the course of the full year. to improve our inventory turns and our working capital.

是的。所以我們進入了今年。我們確實引入了更多庫存——稍微多一點的庫存。顯然，價格推動了這一上漲。我認為我們基礎業務的同比增長可能有 4% 或 5% 是由於價格造成的。然後是另一件事——我主要是從現金流的角度來考慮這個問題，顯然，我們把它引入其中。從這個角度來看，北方的銷售被推遲了。因此，我們的春季負荷、這些天氣導致的產量略高於我認為我們最初的計劃是因為這些銷售被推遲了。但總的來說，我認為我們的目標是——讓我們的商店庫存充足——如果你願意的話，對於我們的分支機構和客戶來說，這是一種遊戲時間，我們希望與產品。但隨著進入下半年，這也讓我們有機會更好地優化，我們認為全年都有機會。改善我們的庫存周轉率和營運資金。

Great. And then, Doug, you mentioned in your prepared remarks some comments around credit availability and you're not really seeing any issues. I was hoping I could pull on that a little bit because I could imagine that some of your contractor customers might have some issues with credit possibly in this type of environment? And then secondarily, I can imagine maybe that some of your M&A targets could potentially have some issues. So maybe both of those topics, I wonder if those are any concern for you?

偉大的。然後，道格，您在準備好的發言中提到了一些有關信貸可用性的評論，但您並沒有真正看到任何問題。我希望我能稍微利用一下，因為我可以想像，在這種環境下，您的一些承包商客戶可能會遇到一些信用問題？其次，我可以想像你們的一些併購目標可能存在一些問題。也許這兩個話題都是您關心的？

We really haven't run into that, at least to date. Obviously, effects of that could be delayed and roll in, in the second half, et cetera. But so far, our commercial customers are continuing to do work, and they've got backlogs and projects seem to be coming in. In terms of acquisitions, we court and target strong companies that are high performers. And so they aren't the ones that end up with issues. The companies out there that have issues are probably not on our target list because they're the weaker performers in the market. And so we haven't seen that as well. And as Scott mentioned, the deal flow has been steady and consistent. We haven't seen any rush to us, and we haven't seen any fall off having to do with higher interest rates or credit.

至少到目前為止，我們確實還沒有遇到過這種情況。顯然，這種影響可能會延遲並在下半年等情況下顯現出來。但到目前為止，我們的商業客戶仍在繼續工作，他們有積壓的訂單，項目似乎正在進來。在收購方面，我們爭取並瞄準表現出色的強大公司。所以他們並不是最終出現問題的人。有問題的公司可能不在我們的目標名單上，因為它們是市場上表現較弱的公司。所以我們也沒有看到這一點。正如斯科特所提到的，交易流一直穩定且一致。我們沒有看到任何急於求成的情況，也沒有看到任何因利率或信貸上升而導致的下降。

We are closing our question-and-answer session. Now I would like to turn the floor back over to Doug Black for closing comments. Please go ahead.

我們的問答環節即將結束。現在我想請道格·布萊克 (Doug Black) 發表結束評論。請繼續。

Okay. Well, thank you again for joining us today. We very much appreciate your interest in SiteOne and look forward to speaking to you again in our next quarterly earnings call. I would like to give another special thanks to our terrific associates for the great job that they do, our customers for allowing us to be their partner and our suppliers for supporting us so well. Thank you, and have a nice day.

好的。好的，再次感謝您今天加入我們。我們非常感謝您對 SiteOne 的興趣，並期待在我們的下一個季度財報電話會議上再次與您交談。我還要特別感謝我們出色的同事所做的出色工作，感謝我們的客戶允許我們成為他們的合作夥伴，感謝我們的供應商對我們的大力支持。謝謝你，祝你有美好的一天。

This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

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，祝您有美好的一天。