SiteOne Landscape Supply Inc (SITE) 2021 Q4 法說會逐字稿

Greetings, and welcome to the SiteOne Landscape Supply Fourth Quarter and Full Year 2021 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 SiteOne Landscape Supply 第四季度和 2021 年全年收益電話會議。 （操作員說明）提醒一下，正在錄製此會議。

I would now like to turn the conference over to your host, John Guthrie, Executive Vice President and Chief Financial Officer for SiteOne Landscape Supply. Thank you. You may begin.

我現在想將會議轉交給您的主持人，SiteOne Landscape Supply 執行副總裁兼首席財務官 John Guthrie。謝謝。你可以開始了。

Thank you, and good morning, everyone. We issued our fourth quarter and full year 2021 earnings press release this morning and posted a slide presentation to the Investor Relations portion of our website at 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.

謝謝大家，早上好。我們今天上午發布了 2021 年第四季度和全年收益新聞稿，並在我們網站 investors.siteone.com 的投資者關係部分發布了幻燈片演示。今天，我們的董事長兼首席執行官道格·布萊克 (Doug Black) 加入了我的行列；戰略與發展執行副總裁 Scott Salmon。

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. 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 release and in our filings with the Securities and Exchange Commission.

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中的聲明包括 1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。這些聲明受風險和不確定性的影響這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發布和我們向美國證券交易委員會提交的文件中規定的因素。

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 GAAP 指標，我們認為這些指標對評估我們的績效很有用。這些措施的對賬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 Doug Black。

Thanks, John. Good morning, and thank you for joining us today. We are pleased to continue our excellent momentum during the fourth quarter, finishing 2021 with tremendous growth in sales and profitability. Despite the overall economic uncertainty, the market demand for professional landscaping services has remained healthy.

謝謝，約翰。早上好，感謝您今天加入我們。我們很高興在第四季度繼續保持良好勢頭，到 2021 年銷售額和盈利能力實現巨大增長。儘管整體經濟存在不確定性，但專業園林綠化服務的市場需求依然健康。

In this environment, our teams performed very well, executing our commercial and operational initiatives and delivering superior value to our customers and suppliers while overcoming COVID-19 challenges, rapid product cost inflation, select supply shortages and ongoing freight and labor constraints. As a result, we believe that we are steadily gaining share on top of the underlying market growth.

在這種環境下，我們的團隊表現非常出色，執行了我們的商業和運營計劃並為我們的客戶和供應商提供了卓越的價值，同時克服了 COVID-19 挑戰、產品成本快速上漲、精選供應短缺以及持續的貨運和勞動力限制。因此，我們相信我們在基礎市場增長的基礎上穩步增加份額。

Furthermore, our recent acquisitions performed well, and we added 8 more high-performing companies to our family during the year. In total, 2021 was an exceptional year in which the power of SiteOne stronger together was on full display. With stronger teams, even more capability, healthy underlying demand and a good backlog of potential acquisition targets, we entered 2022 with significant momentum and look forward to another year of outstanding performance and growth.

此外，我們最近的收購表現良好，年內我們又增加了 8 家表現出色的公司。總的來說，2021 年是非凡的一年，SiteOne 強強聯手的力量得到了充分展示。憑藉更強大的團隊、更強大的能力、健康的潛在需求和潛在收購目標的大量積壓，我們以強勁的勢頭進入了 2022 年，並期待著又一年的出色表現和增長。

I will 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 2021. John Guthrie will then walk you through our fourth quarter and full year 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 outlook for 2022 before taking your questions.

在今天的電話會議開始時，我將簡要回顧一下我們獨特的市場地位以及我們的長期業績和增長戰略，然後是 2021 年的一些亮點。然後，John Guthrie 將向您詳細介紹我們的第四季度和全年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。斯科特·薩爾蒙 (Scott Salmon) 將討論我們的收購戰略，然後我會在回答您的問題之前回過頭來談談我們對 2022 年的展望。

As shown on Slide 4 of the earnings presentation, we have grown our footprint to more than 590 branches and 4 distribution centers across 45 U.S. states and 6 Canadian provinces. We are the clear industry leader over 5x the size of our nearest competitor, yet we estimate that we only have about a 15% share of the very fragmented $23 billion wholesale landscaping products distribution market.

如收益演示文稿的幻燈片 4 所示，我們的足跡已擴展到美國 45 個州和加拿大 6 個省的 590 多家分支機構和 4 個配送中心。我們是明顯的行業領導者，規模是我們最接近的競爭對手的 5 倍多，但我們估計我們在非常分散的 230 億美元批發園林綠化產品分銷市場中只佔有約 15% 的份額。

Accordingly, our remaining growth opportunity is significant. We have a balanced mix of business with 64% focused on maintenance, repair and upgrade; 21% focused on new residential construction; and 15% on new commercial and recreational construction. We are also the only national full product line wholesale distributor in the market. Our balanced end market mix, broad product portfolio and geographic coverage give us multiple avenues to grow and more ways to create value for our customers and suppliers while providing important resiliency in softer markets.

因此，我們剩餘的增長機會是巨大的。我們擁有均衡的業務組合，其中 64% 專注於維護、維修和升級； 21% 專注於新住宅建設； 15% 用於新的商業和娛樂建築。我們也是市場上唯一的全國全產品線批發經銷商。我們平衡的終端市場組合、廣泛的產品組合和地理覆蓋範圍為我們提供了多種增長途徑和更多方式來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 more value than our competitors to our customers and suppliers. We have come a long way in building SiteOne and executing our strategy over the last 6 years, but we are still in the third or fourth inning of our overall development as a truly world-class company.

轉到幻燈片 5。我們的戰略是利用我們作為業內最大的公司所擁有的規模、資源、職能人才和能力，所有這些都支持我們才華橫溢、經驗豐富且具有創業精神的本地團隊，以持續提供比競爭對手更多的價值我們的客戶和供應商。在過去的 6 年中，我們在構建 SiteOne 和執行我們的戰略方面取得了長足的進步，但作為一家真正的世界級公司，我們仍處於整體發展的第三或第四階段。

Accordingly, we remain highly focused on our commercial and operational initiatives to further build our capabilities and improve the value that we deliver to customers and suppliers. 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.

因此，我們仍然高度關注我們的商業和運營計劃，以進一步增強我們的能力並提高我們為客戶和供應商提供的價值。這些舉措得到我們的收購戰略的補充，該戰略充實了我們的產品組合，將我們帶入了新的地理市場，並為 SiteOne 增加了優秀的新人才。總而言之，我們的戰略通過有機增長、收購增長和 EBITDA 利潤率擴張為我們的股東創造了卓越的價值。

If you turn to Slide 6, you will see that our strategy is working. Over the last 6 years, we have been able to deliver consistent organic growth, strong acquisition growth and excellent EBITDA margin expansion while investing heavily in SG&A to build our IT, category management, supply chain, finance, marketing, operational excellence and acquisition teams as well as our underlying system infrastructure to include our digital capabilities.

如果你翻到幻燈片 6，你會發現我們的策略正在發揮作用。在過去的 6 年裡，我們能夠實現持續的有機增長、強勁的收購增長和出色的 EBITDA 利潤率擴張，同時大力投資 SG&A 以建立我們的 IT、品類管理、供應鏈、財務、營銷、卓越運營和收購團隊以及我們的底層系統基礎架構，以包括我們的數字功能。

You will note that over the last 5 years, we grew our sales by over 100% and our adjusted EBITDA by over 200%. This shows the power of our 3 value creation levers: organic sales growth, acquisition growth and EBITDA margin expansion. Given that we are still relatively early in our development, we feel confident in our ability to continue driving all 3 of these levers going forward.

您會注意到，在過去 5 年中，我們的銷售額增長了 100% 以上，調整後的 EBITDA 增長了 200% 以上。這顯示了我們 3 個價值創造槓桿的力量：有機銷售增長、收購增長和 EBITDA 利潤率擴張。鑑於我們仍處於開發的早期階段，我們對繼續推動所有這三個槓桿向前發展的能力充滿信心。

We have much work to do in building our systems infrastructure and our digital capabilities across SiteOne in addition to executing the more advanced phases of our commercial and operational initiatives. Accordingly, we will continue to invest heavily in these. Our field and field support teams who play a big part in leveraging our investments and facilitating our initiatives are largely in place. And so each year, our teamwork, experience and synergies get stronger across SiteOne. We can see this in the increased market share gains, organic growth and improved operating leverage that we achieved in 2021. Going forward, we will build and leverage our capabilities further to accelerate performance for all stakeholders.

除了執行我們的商業和運營計劃的更高級階段之外，我們在 SiteOne 中構建我們的系統基礎設施和我們的數字功能方面還有很多工作要做。因此，我們將繼續在這些方面投入大量資金。我們的現場和現場支持團隊在利用我們的投資和促進我們的計劃方面發揮了重要作用，他們已經基本到位。因此，每一年，我們在 SiteOne 的團隊合作、經驗和協同作用都變得更加強大。我們可以從我們在 2021 年實現的市場份額增加、有機增長和運營槓桿提高中看到這一點。展望未來，我們將進一步建設和利用我們的能力，以加快所有利益相關者的績效。

You will also note that we have now completed 64 acquisitions across the irrigation, agronomics, nursery, hardscapes and landscape supplies product lines during the last 8 years with 8 completed in 2021. We only acquire well-run companies, and so all of these acquisitions were already high-performing companies before joining SiteOne. After they join us, we, together, enjoy the benefits of our combined commercial and operational capabilities.

您還會注意到，在過去 8 年中，我們在灌溉、農藝、苗圃、硬景觀和景觀用品產品線中完成了 64 項收購，其中 2021 年完成了 8 項。我們只收購經營良好的公司，因此所有這些收購在加入 SiteOne 之前已經是高績效公司。在他們加入我們之後，我們將一起享受我們綜合商業和運營能力帶來的好處。

Acquisitions are a key source of new talent and ideas and therefore, they enhance our competitive advantage as we grow. Our acquisition pipeline remains very robust, and we have significant potential to continue growing through acquisition for many years to come.

收購是新人才和新想法的重要來源，因此，隨著我們的成長，它們會增強我們的競爭優勢。我們的收購管道仍然非常強大，我們有很大的潛力在未來許多年通過收購繼續增長。

As a final note on Slide 6, we are very pleased in 2021 to achieve 11.9% adjusted EBITDA margin, exceeding the 10% adjusted EBITDA margin milestone that we set for ourselves at the time of our IPO in 2016. Back in 2016, we knew that we had an extraordinary potential for improvement in our return on sales. And so 10% represented a reasonable milestone for the midterm. Six years later, we have learned a great deal and achieved many improvements. However, we also realize that we have the potential to continue improving our profitability as we deliver even higher value to our customers and suppliers in the future.

作為幻燈片 6 的最後一點，我們很高興在 2021 年實現 11.9% 的調整後 EBITDA 利潤率，超過了我們在 2016 年首次公開募股時為自己設定的 10% 的調整後 EBITDA 利潤率里程碑。早在 2016 年，我們就知道我們在提高銷售回報率方面具有非凡的潛力。因此，10% 代表了中期的合理里程碑。六年過去了，我們學到了很多東西，也取得了很多進步。然而，我們也意識到，隨著我們在未來為客戶和供應商提供更高的價值，我們有可能繼續提高盈利能力。

Longer term, with full execution of our commercial and operational initiatives, we believe that SiteOne should be able to consistently gain market share while operating with an adjusted EBITDA margin of between 13% and 15%. Through our 3 value creation levers, organic growth, acquisition growth and EBITDA margin expansion, we will continue to provide superior returns to our shareholders in the years to come.

從長遠來看，通過全面執行我們的商業和運營計劃，我們相信 SiteOne 應該能夠持續獲得市場份額，同時調整後的 EBITDA 利潤率在 13% 至 15% 之間。通過我們的 3 個價值創造槓桿，有機增長、收購增長和 EBITDA 利潤率擴張，我們將在未來幾年繼續為我們的股東提供卓越的回報。

Slide 7 shows the long runway we have ahead in filling in our product portfolio, which we aim to do primarily through acquisition, especially in the nursery, hardscapes and landscape supplies categories. We are 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 顯示了我們在填充產品組合方面的長跑道，我們的目標主要是通過收購來實現，尤其是在苗圃、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 2021 performance highlights as shown on Slide 8. We delivered 29% net sales growth in 2021, with 20% organic sales growth and 9% net sales growth added through acquisition. Organic daily sales growth was an exceptional 22% and was evenly divided between 11% volume growth and 11% price inflation. We are particularly pleased that we achieved excellent organic volume growth across all product lines, all geographies and across all sizes of customers, reflecting the healthy underlying end market demand and our ability to gain market share. This result also reflects our investments in marketing to better reach small customers, especially small Hispanic customers and attract them to SiteOne. In total, our net organic customer count increased by 8,400 customers or approximately 3% in 2021.

我現在將討論我們 2021 年的一些業績亮點，如幻燈片 8 所示。我們在 2021 年實現了 29% 的淨銷售額增長，其中有機銷售額增長了 20%，通過收購增加了 9% 的淨銷售額增長。每日有機銷售額增長驚人的 22%，在 11% 的銷量增長和 11% 的價格上漲之間平均分配。我們特別高興的是，我們在所有產品線、所有地區和所有規模的客戶中實現了出色的有機銷量增長，反映了健康的潛在終端市場需求和我們獲得市場份額的能力。這一結果也反映了我們在營銷方面的投資，以更好地吸引小客戶，尤其是小西班牙裔客戶，並將他們吸引到 SiteOne。到 2021 年，我們的淨有機客戶總數總共增加了 8,400 名客戶，增幅約為 3%。

Gross margin improved 160 basis points to 34.9% for the year as we benefited significantly from our proactive inventory management during this high inflation period. I would note that we would not expect some of this gain to repeat in 2022.

由於我們在這個高通脹時期積極主動的庫存管理而受益匪淺，因此全年毛利率提高了 160 個基點，達到 34.9%。我要指出的是，我們預計不會在 2022 年重現其中的一些收益。

On the pricing front, rapid cost inflation was a challenge, and we were very pleased with the ability of our local teams to work closely with our suppliers and customers to pass through extraordinary product cost inflation that occurred in the market. We also continued to execute our initiatives with private label products and small customers, both of which grew faster than our average.

在定價方面，快速的成本上漲是一個挑戰，我們很高興我們的本地團隊能夠與我們的供應商和客戶密切合作，以度過市場上發生的異常產品成本上漲。我們還繼續針對自有品牌產品和小客戶執行我們的計劃，這兩者的增長速度都快於我們的平均水平。

On the SG&A side, our operational initiatives and disciplined cost management offset the higher variable expenses associated with the strong organic sales volume and our continued investments in marketing and digital. Accordingly, SG&A as a percent of net sales decreased by 100 basis points to 25.9%. We achieved good cost efficiency benefits from MobilePro, which allows mobile branch transactions and from our Transportation Management System, or TMS, both of which we began rolling out in 2019. These 2 deployments highlight the power of investing in new technologies to improve customer service and increase operating leverage. We will continue to broaden the use of MobilePro and TMS across SiteOne while making more of these types of investments through our operational excellence teams in the future.

在 SG&A 方面，我們的運營舉措和嚴格的成本管理抵消了與強勁的有機銷量相關的較高可變費用以及我們在營銷和數字方面的持續投資。因此，SG&A 占淨銷售額的百分比下降 100 個基點至 25.9%。我們從允許移動分支交易的 MobilePro 和我們的運輸管理系統 (TMS) 中獲得了良好的成本效益，這兩個系統我們於 2019 年開始推出。這兩個部署突出了投資新技術以改善客戶服務和提高經營槓桿。我們將繼續擴大 MobilePro 和 TMS 在 SiteOne 中的使用，同時在未來通過我們的卓越運營團隊進行更多此類投資。

The combination of strong organic sales, impressive gross margin improvement and good contribution from acquisitions allowed us to deliver adjusted EBITDA growth of 60% for the year and expand adjusted EBITDA margin by 230 basis points to 11.9%. We are extremely proud of this achievement as we exceeded our 10% adjusted EBITDA margin milestone. As I mentioned before, we will now set our sights on improving our adjusted EBITDA margin further to the 13% to 15% range in the coming years.

強勁的有機銷售、令人印象深刻的毛利率改善和收購的良好貢獻相結合，使我們今年實現了 60% 的調整後 EBITDA 增長，並將調整後的 EBITDA 利潤率擴大了 230 個基點，達到 11.9%。我們對這一成就感到非常自豪，因為我們超過了 10% 的調整後 EBITDA 利潤率里程碑。正如我之前提到的，我們現在的目標是在未來幾年將調整後的 EBITDA 利潤率進一步提高到 13% 至 15% 的範圍。

In addition to MobilePro and TMS, we continue to make progress on our other important investments during 2021 to build our capabilities for the future. We opened our fourth distribution center near Dallas, Texas, in the third quarter and is now fully operational and supporting our growing company.

除了 MobilePro 和 TMS 之外，我們在 2021 年繼續在其他重要投資上取得進展，以構建我們未來的能力。第三季度，我們在德克薩斯州達拉斯附近開設了第四個配送中心，現在已全面投入運營，為我們不斷發展的公司提供支持。

During the last few years, our distribution centers have proven to be critical in managing supply chain challenges and navigating periods of rapid inflation. The DCs also allow us to expand our private label brands and increase efficiencies with our suppliers.

在過去幾年中，事實證明，我們的配送中心在管理供應鏈挑戰和應對快速通貨膨脹時期方面發揮著至關重要的作用。 DC 還使我們能夠擴展我們的自有品牌並提高我們與供應商的效率。

In 2021, we made great progress with the rollout of our new Salesforce Customer Relationship Management system, or CRM, which will help our over 400 outside sellers bring increased value to our current customers and drive growth through new customers and increased share of wallet. We expanded and strengthened our digital team and made good progress with siteone.com in 2021 as we used the learnings gained from our Tampa, Florida and Los Angeles, California pilots to further improve the content, features and service capabilities of our e-commerce platform.

2021 年，我們在推出新的 Salesforce 客戶關係管理系統 (CRM) 方面取得了重大進展，這將幫助我們的 400 多名外部賣家為我們現有的客戶帶來更多價值，並通過新客戶和增加錢包份額來推動增長。我們擴大和加強了我們的數字團隊，並在 2021 年通過 siteone.com 取得了良好進展，因為我們利用從佛羅里達州坦帕市和加利福尼亞州洛杉磯試點項目中獲得的經驗，進一步改進我們電子商務平台的內容、功能和服務能力.

We have also significantly improved our product data on siteone.com with better images and descriptions over more of our product catalog. We have achieved higher usage of siteone.com in these test markets and are now launching a more aggressive rollout across SiteOne in 2022. We expect to make great progress in online usage this year.

我們還顯著改進了 siteone.com 上的產品數據，在我們的更多產品目錄中提供了更好的圖像和描述。我們在這些測試市場中提高了 siteone.com 的使用率，現在正在 2022 年更積極地在 SiteOne 上推出。我們預計今年的在線使用率將取得長足進步。

At the same time, we are connecting directly with our larger customers through their business management software and/or through EDI to facilitate their ability to secure jobs and easily order from SiteOne. We will continue to invest aggressively to ensure that SiteOne is the digital leader in the professional landscaping services market.

同時，我們通過他們的業務管理軟件和/或通過 EDI 直接與我們的大客戶聯繫，以促進他們獲得工作並輕鬆從 SiteOne 訂購的能力。我們將繼續積極投資，以確保 SiteOne 成為專業園林綠化服務市場的數字領導者。

Lastly, we made further strategic marketing investments during 2021 to increase the awareness of SiteOne and to drive organic sales growth in our targeted customer and product segments. We are excited with the results that we achieved with increased awareness, growth among Hispanic customers and good growth from our product marketing efforts. The marketing team also completed a review of our partners program, and we'll be piloting changes in 2022 to further improve customer benefits and loyalty in the coming years. We are very optimistic that our investments in digital and marketing can create significant competitive advantage for SiteOne.

最後，我們在 2021 年進行了進一步的戰略營銷投資，以提高 SiteOne 的知名度，並推動目標客戶和產品領域的有機銷售增長。我們對隨著意識的提高、西班牙裔客戶的增長以及我們產品營銷工作的良好增長而取得的成果感到興奮。營銷團隊還完成了對我們合作夥伴計劃的審查，我們將在 2022 年試行變革，以在未來幾年進一步提高客戶利益和忠誠度。我們非常樂觀地認為，我們在數字和營銷方面的投資可以為 SiteOne 創造顯著的競爭優勢。

Overall, through our strategic investments and initiatives, we will remain focused on providing world-class tools, processes, training and technologies to deliver value to our customers and suppliers and help our associates be more productive so that they can better help our customers to win.

總體而言，通過我們的戰略投資和舉措，我們將繼續專注於提供世界一流的工具、流程、培訓和技術，為我們的客戶和供應商創造價值，並幫助我們的員工提高工作效率，從而更好地幫助我們的客戶贏得勝利.

On the acquisition front, we added 8 high-performing companies to our families during the year, all of which provide us with excellent new talent and capability for growth in their respective markets while adding approximately $155 million in trailing 12-month sales to SiteOne. Our acquisitions performed very well during 2021, contributing significantly to our growth in adjusted EBITDA. Our development teams remain active, and we expect a busy 2020.

在收購方面，我們在這一年中增加了 8 家高績效公司，所有這些公司都為我們提供了優秀的新人才和在各自市場發展的能力，同時為 SiteOne 增加了約 1.55 億美元的過去 12 個月銷售額。我們的收購在 2021 年表現出色，對我們調整後 EBITDA 的增長做出了重大貢獻。我們的開發團隊仍然活躍，我們預計 2020 年會很忙碌。

To ensure that we continue to drive attractive acquisition growth as we become a larger company, we expanded our development team during the year under Scott Salmon, including the addition of a senior leader focused solely on integrating our new companies. We expect our expanded team to drive even higher growth through acquisitions in the next several years. 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.

為了確保我們在成為一家更大的公司時繼續推動有吸引力的收購增長，我們在 Scott Salmon 的領導下擴大了我們的開發團隊，包括增加了一名專門負責整合我們新公司的高級領導。我們預計我們擴大後的團隊將在未來幾年通過收購推動更高的增長。憑藉經驗豐富的團隊、與最佳公司的廣泛而深入的關係、強大的資產負債表和卓越的聲譽，我們仍然處於有利地位，可以通過收購持續發展。

As a final recent achievement, we are excited to publish our 2021 ESG report in early October. In this report, we shared our vision to become a true company of excellence, which we define with 5 objectives. These objectives are: one, be a great place to work for our associates; two, deliver superior value to our customers; three, be the distributor of choice for our suppliers; four, deliver attractive performance and growth to our shareholders; and five, be a good neighbor in our communities. The 2021 report includes expanded disclosures of our team's progress across these objectives. We look forward to updating you on our progress annually and continuing to enhance our disclosures going forward.

作為近期的最後一項成就，我們很高興在 10 月初發布 2021 年 ESG 報告。在這份報告中，我們分享了成為真正卓越公司的願景，我們定義了 5 個目標。這些目標是：第一，成為我們員工工作的好地方；二、為我們的客戶提供卓越的價值；三、成為我們供應商的首選經銷商；第四，為我們的股東帶來有吸引力的業績和增長；第五，成為我們社區的好鄰居。 2021 年的報告包括對我們團隊在這些目標方面取得進展的更多披露。我們期待每年向您更新我們的進展情況，並繼續加強我們未來的披露。

In summary, 2021 was a breakthrough year in many respects, and we are excited about the significant momentum that we carry into 2022. I could not be prouder of our teams and the way in which they worked through the many challenges that we faced in 2021 and yet executed our strategy at a very high level to take care of each other, serve and support our customers and deliver tremendous value for our suppliers, shareholders and communities. The passion, commitment and teamwork across SiteOne is second to none, and we remain excited about both the short and long-term opportunities to achieve excellent performance and growth for all our stakeholders.

總而言之，2021 年在許多方面都是突破性的一年，我們對進入 2022 年的巨大勢頭感到興奮。我為我們的團隊以及他們應對 2021 年面臨的諸多挑戰的方式感到無比自豪並在非常高的水平上執行我們的戰略，相互照顧，為我們的客戶提供服務和支持，並為我們的供應商、股東和社區創造巨大的價值。 SiteOne 的熱情、承諾和團隊合作是首屈一指的，我們對為所有利益相關者實現卓越績效和增長的短期和長期機會感到興奮。

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

現在約翰將帶您更詳細地了解本季度和全年。約翰？

Thanks, Doug. I'll begin on Slide 9 with some highlights from our fourth quarter results. We reported a net sales increase of 19% to $805 million in the quarter. There were 61 selling days in the fourth quarter, which is 4 fewer days than the 65 days we had in the fourth quarter of 2020. This translates into roughly $41 million in reduced sales in the fourth quarter of 2021 compared to 2020. For the full year, net sales increased 20% to $3.5 billion. We had 253 selling days in 2021 compared to 256 selling days in 2020.

謝謝，道格。我將從幻燈片 9 開始，介紹我們第四季度業績的一些亮點。我們報告本季度的淨銷售額增長了 19%，達到 8.05 億美元。第四季度有 61 個銷售日，比 2020 年第四季度的 65 天少了 4 天。這意味著 2021 年第四季度的銷售額與 2020 年相比減少了大約 4100 萬美元。對於整個年，淨銷售額增長 20% 至 35 億美元。我們在 2021 年有 253 個銷售日，而 2020 年為 256 個銷售日。

Organic daily sales increased by 21% in the fourth quarter and 22% for the full year. Organic daily sales continued to benefit from robust residential and commercial new construction as well as the stay-at-home trend in which homeowners are spending more on maintaining and upgrading their outdoor living spaces.

第四季度有機每日銷售額增長 21%，全年增長 22%。有機日銷售額繼續受益於強勁的住宅和商業新建築，以及房主花更多錢維護和升級戶外生活空間的居家趨勢。

Like last quarter, our organic daily sales growth benefited from strong price inflation resulting from rising product costs. Price inflation contributed approximately 18% to the organic daily sales growth for the quarter. While price inflation played a large role in the quarter, we were pleased with 3% volume growth despite some very challenging comps from last year.

與上一季度一樣，我們的每日有機銷售額增長得益於產品成本上升導致的強勁價格上漲。價格上漲對該季度的每日有機銷售額增長貢獻了約 18%。雖然價格通脹在本季度發揮了重要作用，但我們對 3% 的銷量增長感到滿意，儘管去年有一些非常具有挑戰性的競爭。

For the year, we saw volume growth of 11% and price inflation of 11%. The strong volume growth for the year is indicative of not only the strength of the market, but also our ability to gain share. We experienced double-digit growth across all major product lines and geographic regions. We were also pleased that we achieved strong growth with our professional contractor as opposed to the DIY customers who contributed significantly in 2020.

今年，我們看到銷量增長 11%，價格上漲 11%。今年強勁的銷量增長不僅表明了市場的實力，也表明了我們獲得市場份額的能力。我們在所有主要產品線和地理區域都實現了兩位數的增長。我們也很高興我們的專業承包商實現了強勁增長，而不是在 2020 年做出重大貢獻的 DIY 客戶。

Organic sales for landscaping products, which includes irrigation, nursery, hardscapes, outdoor lighting and landscape accessories was strong again this quarter, increasing by 18% in the fourth quarter and 21% for the full year. Organic daily sales growth for agronomic products, which includes fertilizer, control products, ice melt and equipment was also strong increasing 28% for the quarter and 24% for the full year.

本季度包括灌溉、苗圃、硬景觀、戶外照明和景觀配件在內的園林綠化產品的有機銷售額再次強勁，第四季度增長 18%，全年增長 21%。包括肥料、控制產品、融冰和設備在內的農用產品的有機日銷售額增長也很強勁，本季度增長 28%，全年增長 24%。

Both landscaping products and agronomic products were significantly impacted by cost inflation as the prices for products like fertilizer, grass seed and PVC pipe remained elevated relative to 2020. We expect this trend to continue through the first half of 2022 and then moderate when we start to comp the higher prices that we are now seeing in the market.

由於肥料、草籽和 PVC 管等產品的價格相對於 2020 年仍處於高位，園林綠化產品和農藝產品都受到成本通脹的顯著影響。我們預計這一趨勢將持續到 2022 年上半年，然後在我們開始比較我們現在在市場上看到的更高的價格。

Acquisition sales, which reflect the sales attributable to acquisitions completed in both 2020 and 2021, contributed approximately $44 million or 7% to the overall fourth quarter growth rate. For the full year, acquisitions contributed $242 million in net sales or 9% to the overall growth. We are pleased with the performance of our acquisitions. Scott will provide more details regarding our acquisition strategy later in the call.

收購銷售額反映了 2020 年和 2021 年完成的收購帶來的銷售額，為第四季度整體增長率貢獻了約 4400 萬美元或 7%。全年，收購貢獻了 2.42 億美元的淨銷售額，佔整體增長的 9%。我們對收購的表現感到滿意。斯科特將在稍後的電話會議中提供有關我們收購戰略的更多細節。

Gross profit increased 27% to $282 million for the fourth quarter and gross margin increased 220 basis points to 35.1%. Similar to the third quarter, our gross margin was positively impacted by supply chain initiatives, price realization and increased supplier incentives. With regard to the supply chain initiatives, we benefited from our proactive management of freight costs as well as strategic inventory purchases ahead of the supplier cost increases.

第四季度毛利潤增長 27% 至 2.82 億美元，毛利率增長 220 個基點至 35.1%。與第三季度類似，我們的毛利率受到供應鏈舉措、價格實現和供應商激勵措施增加的積極影響。關於供應鏈計劃，我們受益於我們對運費的主動管理以及在供應商成本增加之前進行的戰略庫存採購。

Supplier incentives accounted for a little over 80 basis points of the improvement in the fourth quarter with the remaining improvement, primarily attributable to the combination of price realization and strategic inventory purchases.

供應商激勵措施佔第四季度改善的 80 個基點多一點，其餘改善主要歸因於價格實現和戰略庫存採購的結合。

For the year, gross profit increased 35% and gross margin increased 160 basis points to 34.9%, primarily attributable to our supply chain initiatives and price realization. We do not expect a rapid price inflation to repeat this year, and so we do not expect to get the same gross margin benefit from price realization in 2022.

全年，毛利增長 35%，毛利率增長 160 個基點至 34.9%，這主要歸功於我們的供應鏈舉措和價格實現。我們預計今年不會重演價格快速上漲，因此我們預計 2022 年不會從價格實現中獲得相同的毛利率收益。

As Doug will discuss in the outlook, we expect a modest gross margin reduction in 2022 as our gross margin improvement initiatives like private label and small customer growth are more than offset by the loss of the price realization benefit.

正如 Doug 將在展望中討論的那樣，我們預計 2022 年毛利率將適度下降，因為我們的自有品牌和小客戶增長等毛利率改善舉措被價格實現收益的損失所抵消。

Selling, general and administrative expense, or SG&A, increased 22% to $247 million for the fourth quarter. SG&A as a percentage of net sales increased 70 basis points to 30.7%. The increase in SG&A as a percentage of net sales primarily reflects increased investment in our strategic initiatives and higher marketing and administrative costs.

第四季度銷售、一般和行政費用或 SG&A 增長 22% 至 2.47 億美元。 SG&A 占淨銷售額的百分比增加了 70 個基點，達到 30.7%。 SG&A 占淨銷售額百分比的增加主要反映了對我們戰略計劃的投資增加以及營銷和管理成本的增加。

For the full year, SG&A increased 24% to $901 million and SG&A as a percent of sales decreased 100 basis points to 25.9%. The improvement in SG&A as a percentage of net sales was primarily due to operating leverage resulting from our strong organic sales growth, combined with disciplined expense management.

全年，SG&A 增長 24% 至 9.01 億美元，SG&A 佔銷售額的百分比下降 100 個基點至 25.9%。 SG&A 占淨銷售額百分比的提高主要是由於我們強勁的有機銷售增長以及嚴格的費用管理帶來的經營槓桿。

For the fourth quarter, we recorded income tax expense of $2.7 million compared to $1.6 million in the prior year period. For the full year, income tax expense was $56.1 million compared to $27.5 million in the prior year. Our effective tax rate was 19% for the 2021 fiscal year compared to 18.5% for the 2020 fiscal year.

第四季度，我們記錄的所得稅費用為 270 萬美元，而去年同期為 160 萬美元。全年所得稅費用為 5610 萬美元，上年為 2750 萬美元。我們 2021 財年的有效稅率為 19%，而 2020 財年為 18.5%。

The increase in the effective tax rate was due primarily to an increase in net income before taxes, partially offset by an increase in the amount of excess tax benefits from stock-based compensation. Excess tax benefits of approximately $20 million were recognized for the 2021 fiscal year as compared to approximately $11 million for the 2020 fiscal year. We expect the 2022 fiscal year effective tax rate will be between 25.5% and 26.5%, excluding discrete items such as excess tax benefits.

實際稅率的增加主要是由於稅前淨收入的增加，部分被股票薪酬帶來的超額稅收優惠的增加所抵消。 2021 財年確認的超額稅收優惠約為 2000 萬美元，而 2020 財年約為 1100 萬美元。我們預計 2022 財年的有效稅率將在 25.5% 至 26.5% 之間，不包括超額稅收優惠等離散項目。

We recorded net income for the fourth quarter of $27.5 million compared to $11.5 million for the prior year period. The improvement was primarily driven by our strong sales growth and gross margin improvement.

我們第四季度的淨收入為 2750 萬美元，而去年同期為 1150 萬美元。這一改善主要是由我們強勁的銷售增長和毛利率改善推動的。

Net income for the 2021 fiscal year grew 97% to $238.4 million compared to $121.3 million for the 2020 fiscal year, primarily driven by higher sales, gross margin and SG&A leverage. Our weighted average diluted share count was 45.8 million for the 2021 fiscal year compared to 44.1 million for the 2020 fiscal year. The increase in the weighted average diluted share count was primarily attributable to our equity offering completed in August 2020.

與 2020 財年的 1.213 億美元相比，2021 財年的淨收入增長了 97%，達到 2.384 億美元，這主要是由於銷售額、毛利率和 SG&A 槓桿率的提高。我們在 2021 財年的加權平均攤薄股數為 4580 萬股，而 2020 財年為 4410 萬股。加權平均稀釋股數的增加主要歸因於我們於 2020 年 8 月完成的股票發行。

Adjusted EBITDA increased by 41% to $61.8 million for the fourth quarter compared to $43.9 million for the same period in the prior year. For the full year, adjusted EBITDA increased 60% to $415.1 million compared to $260.2 million for the 2020 fiscal year. Adjusted EBITDA margin, reflecting our SG&A leverage and gross margin improvement, increased 230 basis points to 11.9% for the 2021 fiscal year.

與去年同期的 4390 萬美元相比，第四季度調整後的 EBITDA 增長了 41% 至 6180 萬美元。與 2020 財年的 2.602 億美元相比，全年調整後的 EBITDA 增長了 60% 至 4.151 億美元。調整後的 EBITDA 利潤率在 2021 財年增加了 230 個基點，達到 11.9%，反映了我們的 SG&A 槓桿和毛利率的改善。

Now I'd like to provide a brief update on our balance sheet and cash flow statement as shown on Slide 11. Net working capital at the end of the year was $616 million compared to $483 million at the end of the 2020 fiscal year. The increase in net working capital is primarily attributable to higher receivables resulting from our strong sales growth and an increase in inventory resulting from cost inflation and increased safety stock. We are carrying more inventory to mitigate the risk of supply chain disruptions to ensure that we can satisfy our customer demand.

現在我想簡要介紹一下我們的資產負債表和現金流量表，如幻燈片 11 所示。與 2020 財年末的 4.83 億美元相比，今年年底的淨營運資金為 6.16 億美元。淨營運資金的增加主要是由於我們強勁的銷售增長導致應收賬款增加，以及成本膨脹和安全庫存增加導致庫存增加。我們正在增加庫存以降低供應鏈中斷的風險，以確保我們能夠滿足客戶的需求。

In addition, in the third quarter of 2021, we opened a new DC in the Dallas area and started the relocation of our Atlanta area DC to a new larger facility. As I mentioned last quarter, we believe the new DC will increase the efficiency of our network by bringing inventory closer to market as well as reduce our freight expense. In the short term, we are also carrying additional inventory in our DCs to reduce the potential risk of disruption caused by the transition.

此外，在 2021 年第三季度，我們在達拉斯地區開設了一個新的 DC，並開始將我們的亞特蘭大地區 DC 搬遷到一個新的更大的設施。正如我在上個季度提到的那樣，我們相信新的 DC 將通過使庫存更接近市場並降低我們的運費來提高我們網絡的效率。短期內，我們還在 DC 中增加了庫存，以降低過渡造成的潛在中斷風險。

Cash flow from operations increased to approximately $51 million in the fourth quarter of 2021 compared to approximately $49 million in 2020. The increase in cash flow was primarily driven by our increased profitability. Cash flow from operations decreased to approximately $211 million for the full year 2021 compared to approximately $229 million in the prior year. The decrease was primarily attributable to our increased investment in working capital.

2021 年第四季度，運營產生的現金流量從 2020 年的約 4900 萬美元增加到約 5100 萬美元。現金流量的增加主要是由於我們盈利能力的提高。 2021 年全年運營現金流減少至約 2.11 億美元，而上年約為 2.29 億美元。減少的主要原因是我們增加了對營運資金的投資。

We made cash investments of $85 million for the quarter compared to $97 million in the same quarter last year and $182 million for the 2021 fiscal year compared to $184 million in the 2020 fiscal year. The decrease in cash investments reflects slightly lower spend on acquisitions in 2021 compared to 2020.

我們本季度的現金投資為 8500 萬美元，去年同期為 9700 萬美元；2021 財年的現金投資為 1.82 億美元，而 2020 財年為 1.84 億美元。現金投資的減少反映了與 2020 年相比，2021 年的收購支出略有下降。

Net debt at the end of the 2021 fiscal year was approximately $247 million compared to approximately $250 million at the end of the prior year period. Leverage decreased to 0.6x our trailing 12 months adjusted EBITDA compared to 1x at the end of the 2020 year. The lower leverage reflects our improved profitability. Our target net debt-to-adjusted EBITDA range is 1 to 2x at year-end but is dependent upon our investment in acquisitions for a given year.

2021 財年末的淨債務約為 2.47 億美元，而去年同期末約為 2.5 億美元。槓桿率下降至我們過去 12 個月調整後 EBITDA 的 0.6 倍，而 2020 年底為 1 倍。較低的槓桿率反映了我們提高的盈利能力。我們的目標淨債務調整後 EBITDA 範圍是年底的 1 到 2 倍，但這取決於我們在給定年份的收購投資。

At the end of the year, we had available liquidity of $418 million, which consisted of approximately $54 million of cash on hand and approximately $364 million in available capacity under our ABL facility.

截至年底，我們擁有 4.18 億美元的可用流動資金，其中包括約 5400 萬美元的手頭現金和約 3.64 億美元的 ABL 貸款下的可用能力。

In summary, our priority from a balance sheet perspective is to maintain our financial strength and flexibility without sacrificing long-term growth or market opportunities.

總之，從資產負債表的角度來看，我們的首要任務是在不犧牲長期增長或市場機會的情況下保持我們的財務實力和靈活性。

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，了解我們收購戰略的最新情況。

Thanks, John. As shown on Slide 12, we acquired 2 companies in the fourth quarter, bringing our total to 8 for 2021 with the combined trailing 12-month net sales of approximately $155 million. Since 2014, we have acquired 64 companies with approximately $1.2 billion in trailing 12-month net sales added to SiteOne.

謝謝，約翰。如幻燈片 12 所示，我們在第四季度收購了 2 家公司，使我們在 2021 年的總數達到 8 家，過去 12 個月的總淨銷售額約為 1.55 億美元。自 2014 年以來，我們已經收購了 64 家公司，SiteOne 過去 12 個月的淨銷售額增加了約 12 億美元。

Turning to Slide 13 and 14, you will find information on our most recent acquisitions. On November 12, we acquired Semco Stone, one of the largest natural stone distributors in the Midwest with 4 wholesale locations across Ohio and Missouri. This acquisition further expands the number of markets in which we provide a full range of landscaping products and services to our customers.

轉到幻燈片 13 和 14，您會找到有關我們最近收購的信息。 11 月 12 日，我們收購了 Semco Stone，這是中西部最大的天然石材分銷商之一，在俄亥俄州和密蘇里州擁有 4 個批發點。此次收購進一步擴大了我們為客戶提供全方位園林綠化產品和服務的市場數量。

Also on December 1, we acquired Seffner Rock & Gravel located in Tampa, Florida. Seffner establishes our first hardscapes and bulk landscape materials location in the Florida market. By teaming up with these 2 high-performing partners, we continue to deliver on our strategy to expand the products, services and overall value we offer our customers across all of our markets.

同樣在 12 月 1 日，我們收購了位於佛羅里達州坦帕的 Seffner Rock & Gravel。 Seffner 在佛羅里達市場建立了我們的第一個硬景觀和散裝景觀材料位置。通過與這兩個表現出色的合作夥伴合作，我們將繼續實施我們的戰略，以擴展我們為所有市場的客戶提供的產品、服務和整體價值。

Summarizing on Slide 15, our acquisition strategy continues to create significant value for SiteOne. Our pipeline remains strong across all lines of business and geographies, giving us confidence that we will be able to add many more outstanding companies to SiteOne in 2022.

總結幻燈片 15，我們的收購戰略繼續為 SiteOne 創造重要價值。我們的渠道在所有業務線和地區都保持強勁，這讓我們有信心在 2022 年將更多優秀的公司加入 SiteOne。

We are pleased that so many owners continue to choose SiteOne as a great home for the family businesses. These strong leaders and innovators are a powerful force within SiteOne as they help us to improve the value that we deliver to customers and suppliers. As they bring us fresh ideas and help us to grow and improve, we provide the resources and flexibility for them and their teams to pursue both their personal and professional passions. Ultimately, we all win, stronger together.

我們很高興有這麼多業主繼續選擇 SiteOne 作為家族企業的理想家園。這些強大的領導者和創新者是 SiteOne 內部的一股強大力量，因為他們幫助我們提高了我們為客戶和供應商提供的價值。當他們給我們帶來新鮮的想法並幫助我們成長和改進時，我們為他們和他們的團隊提供資源和靈活性，以追求他們的個人和職業激情。最終，我們都會贏，一起變得更強大。

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 join the SiteOne family. I am confident in our ability to keep adding more outstanding new companies through acquisition in 2022, creating terrific value for all our stakeholders.

我要感謝整個 SiteOne 團隊對使 SiteOne 成為理想工作場所的熱情和承諾，並在新收購的團隊加入 SiteOne 大家庭時對他們表示歡迎。我相信我們有能力在 2022 年通過收購不斷增加更多優秀的新公司，為我們所有的利益相關者創造巨大的價值。

I will now turn the call back to Doug.

我現在將電話轉回道格。

Thanks, Scott. I'll wrap up on Slide 16. As mentioned, we are carrying a significant amount of momentum into 2022 and are cautiously optimistic about the year despite the tough comparisons that we faced from last year. As John mentioned, we expect the high inflation to continue through the first half of the year and then moderate in the second half as we start to comp the higher prices that we're experiencing now and as some of our commodity product prices return to more normalized levels.

謝謝，斯科特。我將在幻燈片 16 上結束。如前所述，我們在 2022 年保持著巨大的勢頭，儘管與去年相比我們面臨著艱難的比較，但我們對這一年持謹慎樂觀的態度。正如 John 所提到的，我們預計高通脹將持續到今年上半年，然後在下半年放緩，因為我們開始計算我們現在正在經歷的更高價格，並且隨著我們的一些商品價格恢復到更高水平標準化水平。

Combined with the healthy underlying demand for professional landscaping services, the market should provide a reasonable environment for us to execute our commercial and operational initiatives and drive further growth in sales and profits in 2022.

結合對專業園林綠化服務的健康潛在需求，市場應為我們執行商業和運營計劃提供合理的環境，並推動 2022 年銷售額和利潤的進一步增長。

In terms of markets, we are currently seeing solid demand trends in all of our end markets, maintenance, repair and upgrade and both residential and commercial new construction. Our contractors remain busy and have strong backlogs to start 2022.

在市場方面，我們目前在所有終端市場、維護、維修和升級以及住宅和商業新建築中都看到了穩定的需求趨勢。我們的承包商仍然很忙，並且在 2022 年開始時積壓了大量訂單。

We understand that there is currently a lot of economic uncertainty associated with inflation, but we have not yet seen this translate into lower demand. Furthermore, we expect to gain market share as we deliver higher value to our customers and further execute our customer and product growth strategies, including our marketing and digital initiatives. Taken together with the anticipated inflation, we would expect to achieve high single-digit organic daily sales growth for the full year 2022.

我們知道目前存在很多與通貨膨脹相關的經濟不確定性，但我們尚未看到這會轉化為需求下降。此外，隨著我們為客戶提供更高的價值並進一步執行我們的客戶和產品增長戰略，包括我們的營銷和數字計劃，我們希望獲得市場份額。結合預期的通貨膨脹，我們預計 2022 年全年將實現高單位數的每日有機銷售額增長。

As John discussed, we do not expect to repeat the significant price realization benefits that we achieved last year with the rapid run-up in inflation. However, we expect to mitigate this reduction and price realization with our gross margin improvement initiatives. Overall, we would expect gross margin to be in the range of 34% to 34.5% in 2022. While we will be able to achieve some SG&A leverage, we expect our adjusted EBITDA margin to decline modestly in 2022.

正如 John 所討論的那樣，我們預計不會重複去年因通貨膨脹迅速上升而實現的顯著價格實現收益。但是，我們希望通過我們的毛利率改善計劃來減輕這種減少和價格實現的影響。總體而言，我們預計 2022 年毛利率將在 34% 至 34.5% 之間。雖然我們將能夠實現一些 SG&A 槓桿，但我們預計調整後的 EBITDA 利潤率將在 2022 年小幅下降。

In terms of acquisitions, as Scott mentioned, we currently have a strong pipeline of high-quality companies and look forward to adding more of these to the SiteOne family during the year. Our acquisitions are performing very 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 in 2022 and the years ahead.

在收購方面，正如 Scott 提到的，我們目前擁有大量優質公司，並期待在年內將更多此類公司加入 SiteOne 家族。我們的收購表現非常好，我們繼續提高將它們整合到我們公司的能力。因此，我們預計收購將為我們 2022 年及未來幾年的業績和增長做出巨大貢獻。

With all of these factors in mind, we anticipate our fiscal 2022 adjusted EBITDA to be in the range of $430 million to $450 million, which represents year-over-year growth of 4% to 8%. This range does not factor any contribution from unannounced acquisitions.

考慮到所有這些因素，我們預計 2022 財年調整後的 EBITDA 將在 4.3 億美元至 4.5 億美元之間，同比增長 4% 至 8%。該範圍不考慮未宣布收購的任何貢獻。

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 is 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，我要衷心感謝我們所有的 SiteOne 員工，他們繼續以他們的熱情、承諾、團隊合作和無私的服務讓我驚嘆。我們擁有一支強大的團隊，很榮幸能與他們一起為所有利益相關者提供越來越多的價值。我還要感謝我們的供應商對我們的大力支持，以及我們的客戶讓我們成為他們的合作夥伴。

Operator, please open the line for questions.

接線員，請打開問題線路。

(Operator Instructions) Our first question comes from the line of Ryan Merkel with William Blair.

（操作員說明）我們的第一個問題來自 Ryan Merkel 和 William Blair 的台詞。

Congrats on the strong finish to 2021.

祝賀您在 2021 年取得了優異的成績。

Thanks, Ryan.

謝謝，瑞安。

So Doug, first off, on the sales guide for '22, can you just break out price versus volume? And then I'm also curious about your estimate for industry growth in '22.

所以，道格，首先，在 22 年的銷售指南中，你能打破價格與數量的關係嗎？然後我也很好奇你對 22 年行業增長的估計。

Yes. So as we look out in '22, as we mentioned, our customers have good backlogs. They're busy. We think that the economy will hang in there. Residential is probably going to be lower than this year, but still some growth. New commercial, we think, will be very solid. And then repair and remodel right now on the professional side is pretty robust. So our guide of high single digits.

是的。因此，正如我們所提到的，正如我們在 22 年展望的那樣，我們的客戶有很好的積壓。他們很忙。我們認為經濟將保持在那裡。住宅可能會低於今年，但仍有一些增長。我們認為，新商業廣告將非常穩固。然後現在在專業方面進行維修和改造非常穩健。所以我們的高個位數指南。

We do expect high inflation to continue as we mentioned through the first half. It will moderate in the second half. We would say that the majority of that is -- will be inflation, but we'll still get a little bit of volume growth. We think, again, the market is going to be fairly solid, and there should be some growth in the market, although we're cautious about that. And we feel like we'll pick up our consistent 1 or 2 points of growth through market share gains as we add more value across the product portfolio. But for the total growth for the year, you consider most of that inflation with some volume growth.

正如我們在上半年提到的那樣，我們確實預計高通脹將持續下去。下半年會緩和。我們會說其中大部分是 - 將是通貨膨脹，但我們仍然會獲得一點數量增長。我們再次認為，市場將相當穩固，市場應該會有一些增長，儘管我們對此持謹慎態度。我們覺得隨著我們在產品組合中增加更多價值，我們將通過市場份額的增加獲得持續的 1 或 2 個增長點。但對於今年的總增長，你會考慮大部分通貨膨脹和一些銷量增長。

Got it. I think makes sense after such a strong '21. And then just turning to gross margin, I guess, a couple questions there. How much did the strategic inventory buys help gross margins in '21? And then how should we think about the cadence of gross margins maybe more flattish year-over-year in the first half of '22 and then down slightly second half?

知道了。我認為在如此強勁的 21 之後是有道理的。然後只是轉向毛利率，我想，那裡有幾個問題。戰略庫存購買對 21 世紀的毛利率有多大幫助？然後我們應該如何考慮毛利率的節奏在 22 年上半年可能會同比持平，然後在下半年略有下降？

Well, if you look in Q4, price and the strategic inventory buys were about 130 basis points. And the specific -- our guide going forward with the 34% to 34.5% really kind of has us going backwards on that component of the gross margin. So it is somewhere in that range.

好吧，如果你看看第四季度，價格和戰略庫存購買約為 130 個基點。具體來說——我們的指南將 34% 提高到 34.5%，這確實讓我們在毛利率的這一部分上倒退了。所以它在那個範圍內的某個地方。

With regards to the cadence for next year, we would expect it would go down similarly to what Doug reflected in his discussion about price and really kind of Q1 will probably still be a positive margin outlook and then tailing off as we go out throughout the year with Q3 and Q4. In Q3, we were up 310 basis points. A significant portion of that, one, was the price realization. And then obviously, this quarter also a significant portion of the margin -- gross margin beat was due to price realization. So what we have kind of going forward is those 2 kind of pickups trailing off and not necessarily repeating. We don't think the opportunity for that benefit will occur again next year.

關於明年的節奏，我們預計它會像 Doug 在他關於價格的討論中所反映的那樣下降，而且真正的第一季度可能仍然是一個積極的利潤率前景，然後隨著我們全年出去而逐漸減少與 Q3 和 Q4。在第三季度，我們上漲了 310 個基點。其中很大一部分是價格實現。然後很明顯，本季度也有很大一部分利潤率——毛利率低於預期是由於價格實現。所以我們有一種前進的方式是那些 2 種拾音器尾隨而不必重複。我們認為明年不會再有這種好處的機會。

Okay. Got it. So it sounds like a little bit more of a decline in second half versus sort of my comment about modest is what you're saying?

好的。知道了。所以這聽起來像是下半年的下降，而不是我對謙虛的評論，你在說什麼？

Yes.

是的。

Our next question comes from the line of David Manthey with Baird.

我們的下一個問題來自 David Manthey 與 Baird 的對話。

So to start here, Doug, maybe you could orient us on contribution margins as we move towards that 13% to 15% goal. In 2020, you ran about 17%, and that was before the unusual uptick in pricing that we saw last year. So once gross margins normalize here in 2022, as you look out to the first, say, 1 to 3 years, reaccelerating toward that new 13% to 15% EBITDA goal, what are you thinking in terms of contribution margins at least early in that curve?

所以從這裡開始，道格，也許你可以在我們朝著 13% 到 15% 的目標邁進時，讓我們了解邊際收益。在 2020 年，你跑了大約 17%，那是在我們去年看到的價格異常上漲之前。因此，一旦毛利率在 2022 年正常化，當您展望第一年，比如 1 到 3 年，重新加速實現 13% 到 15% 的 EBITDA 新目標時，您至少在早期對邊際貢獻有何看法曲線？

Yes. I think you should see contribution margins that were typical for us as we were going from kind of 8.5% up through, let's call it, 11.5%, obviously 11.9% this year. There was some extra gain in there. And through that period, John, correct me if I'm wrong, we would normally be in the kind of, call it, 17% to 18% incremental EBITDA on sales. And we think we should be able to be in that range, maybe, call it, 15% or 16% to 18% gets down to the bottom line once we get settled this year going forward. I don't know, John, any color on that?

是的。我認為你應該看到對我們來說很典型的貢獻利潤率，因為我們從 8.5% 上升到 11.5%，今年顯然是 11.9%。那裡有一些額外的收穫。在那段時間裡，約翰，如果我錯了請糾正我，我們通常會稱之為 17% 到 18% 的銷售額 EBITDA 增量。我們認為我們應該能夠在這個範圍內，也許，一旦我們在今年得到解決，15% 或 16% 到 18% 就會降到底線。我不知道，約翰，上面有什麼顏色嗎？

No. I think those are the numbers, and we should be able to continue to eke out or move forward on our overall EBITDA margins after we kind of reset this year.

不，我認為這些就是數字，在我們今年重新設置之後，我們應該能夠繼續維持或提高我們的整體 EBITDA 利潤率。

Okay. And then second, in terms of acquisitions, since the IPO, you've averaged about high single-digit growth contribution. The first few years was low double digit. Lately, it's been more mid-single to high single. And I think in the monologue, Doug, you mentioned you expected higher growth via acquisition. And so I'm trying to parse out that definition. Do you mean higher than the mid-single-digit growth contribution we've seen in the last few years or something else? I'm just trying to get a finer point on what you mean by higher growth via acquisition.

好的。其次，在收購方面，自首次公開募股以來，你的平均增長貢獻約為高個位數。前幾年是低兩位數。最近，更多的是中單到高單。我想在獨白中，道格，你提到你期望通過收購實現更高的增長。所以我試圖解析出這個定義。你的意思是高於我們在過去幾年中看到的中個位數增長貢獻還是其他什麼？我只是想更好地理解你所說的通過收購實現更高增長的意思。

Right. I mean good question. Obviously, we got the lot of big numbers going on here as we approach $4 billion and $5 billion, we need to be able to do more dollar acquisitions to stay in that range of 7% to 13%. And so that's what I was referring to is that we've added a couple team members to Scott's team in order to up our sourcing of deals and also to take the integration burden off of the -- of our acquisition professionals so that they can be focused on courting and finding and getting deals done.

正確的。我的意思是好問題。顯然，當我們接近 40 億美元和 50 億美元時，我們在這裡發生了很多大數字，我們需要能夠進行更多的美元收購以保持在 7% 到 13% 的範圍內。所以這就是我所指的是，我們已經在 Scott 的團隊中增加了幾個團隊成員，以加強我們的交易採購，並減輕我們收購專業人員的整合負擔，以便他們可以專注於求愛、尋找和完成交易。

And so we still feel that, that 7% to 13% range is a solid range. To hit the high part of that range would have to have a bigger deal. There's probably a dozen companies out there that are $100 million or north of $100 million. We need one of those to drop to be in the upper part of that range. But without that, we feel we can be in, call it, the 7% to 10% range with a normal cadence of acquisitions without that larger deal that will come every couple of years. So does that make sense?

所以我們仍然認為，7% 到 13% 的範圍是一個可靠的範圍。要達到該範圍的較高部分，就必須有更大的交易。市值 1 億美元或超過 1 億美元的公司可能有十幾家。我們需要其中一個下降到該範圍的上部。但如果沒有這一點，我們覺得我們可以在 7% 到 10% 的範圍內，以正常的收購節奏進行，而不需要每隔幾年進行一次更大的交易。那麼這有意義嗎？

So we need to up the dollar amount of acquisitions that we're doing and integrating. And quite frankly, if we look back over the last 4, 5 years, there were times where our ability to just kind of integrate and digest deals were the things that were holding us back. And so we've alleviated some of those bottlenecks so that we can keep up with our growth.

因此，我們需要增加我們正在進行和整合的收購金額。坦率地說，如果我們回顧過去 4、5 年，有時我們整合和消化交易的能力是阻礙我們前進的因素。因此，我們已經緩解了其中一些瓶頸，以便我們能夠跟上我們的增長。

Our next question comes from the line of Stephen Volkmann with Jefferies.

我們的下一個問題來自 Stephen Volkmann 與 Jefferies 的對話。

I wanted to go back to the gross margin for a second and just talk a little bit about some of the moving pieces. So do you think that there are certain classes of items that will actually go down in price in '22? And if that were to happen, I guess, it will happen at some point with some of the chemicals maybe. But do you -- would you then lower your prices? Or do you sort of hold price when that happens? Just how does that dynamic work?

我想再回到毛利率上來談談一些移動的部分。那麼，您認為某些類別的商品在 22 年實際上會降價嗎？如果那真的發生了，我想，它可能會在某個時候發生在某些化學物質上。但是你 - 你會降低你的價格嗎？或者當這種情況發生時你會保持價格嗎？這種動態如何運作？

Well, there is a component of our business that is -- has a commodity nature to it, say, for instance, fertilizer and if raw ingredients play a large component of what that price is. So as prices drop we would follow the market down. I mean eventually, there is a temporary -- there may be timing issues, both on the up and down. But in general, the market will settle out at a lower price with regards to like where we are at right now.

好吧，我們業務的一個組成部分是 - 具有商品性質，例如化肥，如果原材料在價格中起很大作用。因此，隨著價格下跌，我們將跟隨市場下跌。我的意思是最終，有一個暫時的 - 可能有時間問題，無論是向上還是向下。但總的來說，就我們現在所處的位置而言，市場將以較低的價格結算。

We have some of that built into our model into our guidance that for that -- those components that have really risen over the past year, especially in the second half that they actually may go down and maybe comping in the second half of this year on a slightly negative number.

我們將其中一些納入我們的模型並納入我們的指導方針——那些在過去一年中真正上升的組成部分，尤其是在下半年，它們實際上可能會下降，並且可能會在今年下半年出現一個輕微的負數。

Got it. Okay. And then anything to call out on the commercial side of the business? Does that grow more quickly in '22? Or just any trends there would be great.

知道了。好的。然後在業務的商業方面有什麼要說的嗎？這在 22 年會增長得更快嗎？或者任何趨勢都會很棒。

We're seeing good growth in commercial as we have had really starting, I think, 1.5 years ago. So the market is strong, and our customers have good backlogs. We have a project services group that bids on those types of projects for our customers. So we provide bids to our customers. And that group, the numbers are up in the fourth quarter versus last year. So we do anticipate that there will be growth in the commercial side. It's a smaller part of our business. 15%, when you combine that with the recreational, that's commercial and new construction. But we do think it will be healthy this year.

我認為，我們在 1.5 年前就真正開始了，我們看到了商業領域的良好增長。因此市場強勁，我們的客戶有大量積壓訂單。我們有一個項目服務小組，可以為我們的客戶對這些類型的項目進行投標。因此，我們向客戶提供出價。而那個群體，第四季度的數字與去年相比有所上升。所以我們確實預計商業方面會有增長。這是我們業務的一小部分。 15%，當你把它與娛樂結合起來時，那就是商業和新建築。但我們確實認為今年會很健康。

Our next question comes from the line of Matthew Bouley with Barclays.

我們的下一個問題來自巴克萊銀行的 Matthew Bouley。

This is Ashley Kim on for Matt. So my first question is just, are you hearing anything from customers on constrained labor capacity within their own operations? And then any concerns there that could kind of cap growth even if demand remains supportive?

這是馬特的阿什利金。所以我的第一個問題是，您是否從客戶那裡聽到任何關於他們自己的運營中勞動力受限的消息？然後，即使需求保持支持，是否存在任何可能限制增長的擔憂？

So we've been hearing about labor constraints for about 3 years. It's been an issue. It's going to continue to be an issue. And it does cap growth in the short term. In other words, if the weather is particularly good or you have a hot market like we've had over the last couple of years in repair and remodel, there's only so much the contractors can do. So yes, we anticipate that constraint, but it's not anything that we haven't seen.

所以我們已經聽說了大約 3 年的勞動力限制。這是一個問題。這將繼續成為一個問題。它確實在短期內限制了增長。換句話說，如果天氣特別好，或者你有一個火爆的市場，就像我們在過去幾年的維修和改造中遇到的那樣，承包商能做的只有這麼多。所以是的，我們預料到了這種限制，但這並不是我們沒有看到的任何東西。

Our customers are finding ways to grow when you look at an annual basis as they automate their business as they use more equipment, quite frankly, some of our services and products are aimed at helping them to be more efficient and get more done with fewer people. So they are continuing to get more productive, and they manage that constraint. But yes, the constraint's there. It's tough to find labor for everyone. And we don't feel that that's going to go away in 2022, but it's nothing that we haven't seen in the last couple of years.

當您每年查看時，我們的客戶正在尋找增長的方法，因為他們使用更多設備來實現業務自動化，坦率地說，我們的一些服務和產品旨在幫助他們提高效率，用更少的人完成更多的工作.因此，他們繼續提高生產力，並且他們管理了這種限制。但是，是的，約束就在那裡。很難為每個人找到勞動力。我們不認為這種情況會在 2022 年消失，但在過去幾年中我們沒有看到過。

And then are you seeing any relief in supply? Or are you still kind of finding yourself operating in a pretty tight backdrop?

然後你看到供應有任何緩解嗎？或者你是否仍然發現自己在一個非常緊張的背景下運作？

It's still tight, and it's in specific products across the spectrum. And so -- and again, that's been the case in the last 18 months or really since the COVID ramp came back in 2020. As we mentioned, we've got our fourth DC that's up and running. We use our distribution centers to cushion ourselves against the supply chain disruptions. And in general, our category and purchasing teams do a great job of staying ahead of that.

它仍然很緊，而且它存在於整個頻譜的特定產品中。所以——再一次，過去 18 個月就是這種情況，或者自 2020 年 COVID 回升以來確實如此。正如我們提到的，我們已經啟動並運行了第四個 DC。我們使用我們的配送中心來緩衝供應鏈中斷。總的來說，我們的類別和採購團隊在保持領先地位方面做得很好。

So yes, the supply chain constraints are still there. We think they're going to be with us for most of the year. SiteOne, we're built to be able to navigate those. And in fact, it gives us a strategic advantage over our smaller regional competitors in some ways. So -- and as we mentioned, we have our inventory well stocked for the year. So we've anticipated that those constraints are going to continue and are prepared to grow despite them.

所以是的，供應鏈的限制仍然存在。我們認為他們將在一年中的大部分時間與我們在一起。 SiteOne，我們是為了能夠導航這些而構建的。事實上，它在某些方面為我們提供了優於我們較小的區域競爭對手的戰略優勢。所以——正如我們提到的，我們今年的庫存充足。因此，我們預計這些限制將繼續存在，並準備好在這些限制條件下增長。

Our next question comes from the line of Mike Dahl with RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Mike Dahl。

This is Ryan Frank on for Mike. So a question on the long-term EBITDA guide. I think previously, you guys have said gross margins in the mid-30s and SG&A in roughly the low 20s. So gross margins basically there, given the guide that you said this year. You've done a good job leveraging SG&A, but it sounds like you're going to kind of continue to invest in the near term. So I guess my question is what drives the SG&A leverage over time? And when do you really think you guys can start seeing kind of the significant benefits again?

這是 Mike 的 Ryan Frank。所以關於長期 EBITDA 指南的問題。我想以前，你們說過 30 多歲的毛利率和大約 20 多歲的低 SG&A。因此，根據您今年所說的指南，毛利率基本上就在那裡。您在利用 SG&A 方面做得很好，但聽起來您將在短期內繼續投資。所以我想我的問題是隨著時間的推移是什麼推動了 SG&A 的槓桿作用？你什麼時候真的認為你們可以再次看到顯著的好處？

Right. Good question. As we look out forward, we do expect to improve our EBITDA margin on both sides. So we do expect gross margin to continue to improve. Although as you mentioned, we think there's an endgame there that will reach eventually. And then on the SG&A efficiency side, we still have a lot of ways to make our field more efficient. Our seller -- with our CRM, our CRM is brand new, and we've just rolled that across. And as we begin to use that more effectively, that will help make our customers more efficient and us more efficient. Digital, we're embryonic in digital. And as we ramp that up, that makes, again, both our customers and us more efficient.

正確的。好問題。展望未來，我們確實希望提高雙方的 EBITDA 利潤率。因此，我們確實預計毛利率將繼續提高。儘管正如您提到的那樣，我們認為最終會有一個結局。然後在 SG&A 效率方面，我們仍然有很多方法可以使我們的領域更有效率。我們的賣家——有了我們的 CRM，我們的 CRM 是全新的，我們剛剛推出了它。隨著我們開始更有效地使用它，這將有助於提高我們的客戶和我們的效率。數字化，我們正處於數字化的萌芽階段。隨著我們的提高，這再次使我們的客戶和我們都更有效率。

And then in our field, things like TMS and MobilePro are designed to, first and foremost, enhance our customer experience. But they also make our field more productive, and we're perfecting those and we've got upgrades to those, and we're learning as we go. So we feel that there's still -- and if you look -- I guess the final aspect is, if you look back at 2014, we were $2.9 million per branch.

然後在我們的領域，TMS 和 MobilePro 之類的東西的設計首先是為了增強我們的客戶體驗。但它們也使我們的領域更有成效，我們正在完善這些，我們已經升級了這些，我們邊走邊學。所以我們覺得仍然 - 如果你看 - 我想最後一個方面是，如果你回顧 2014 年，我們每個分支機構的收入為 290 萬美元。

Today, we'd be almost $6 million per branch, and we're going to continue to increase the revenue per branch, and that brings its own economies of scale on a local level. So when you put all that together, we do expect to be able to drive SG&A as a percent of sales down significantly, and we'll be working on that for the next 5 to 7 years.

今天，我們每個分支機構的收入將近 600 萬美元，我們將繼續增加每個分支機構的收入，這會在地方層面帶來自身的規模經濟。因此，當您將所有這些放在一起時，我們確實希望能夠將 SG&A 作為銷售額的百分比顯著降低，並且我們將在未來 5 到 7 年內努力實現這一目標。

And then would it be safe to say that, I guess, maybe less leverage in the next 1 to 2 years and probably more leverage further out? Or is it kind of even spread?

然後可以安全地說，我猜，在未來 1 到 2 年內可能會降低杠桿率，並且可能會進一步提高槓桿率？或者它甚至有點傳播？

I think it would be fairly even. If you look at this year, we're investing heavily still. We're also working hard to make sure that we have full staffing. And I would add, the final thing is that we're seeing labor inflation that's in excess of what we've seen before. And so those factors kind of work against leverage.

我認為這會相當均勻。如果你看看今年，我們仍在大力投資。我們也在努力確保我們擁有完整的人員配置。我要補充的是，最後一件事是我們看到的勞動力通脹超過了我們之前看到的水平。因此，這些因素有點不利於槓桿作用。

We'll still get SG&A leverage this year, but it will probably be lower. When I say 2022, we'll probably be lower than we would anticipate getting in '23 and beyond. But in the large scheme of things, we think it should be fairly well spread out. John, anything...

今年我們仍將獲得 SG&A 槓桿，但可能會更低。當我說 2022 年時，我們可能會低於 23 年及以後的預期。但從大的方面來看，我們認為它應該被很好地分散開來。約翰，任何...

Yes. I think one of the things that as we approach kind of improving margins, each year, we look at improving the business and identifying different things that are going to add efficiency, improve either gross margin or SG&A leverage. And so there's not one big, I would say, cliff out there that's going to do it. But as we continue to expand in private label each year, as we continue to increase our share with small customers, each one of those things has an incremental growth. And as we get better and better with digital driving additional organic sales growth, the natural gearing of the business comes through.

是的。我認為，隨著我們接近提高利潤率，每年我們都會著眼於改善業務並確定將提高效率、提高毛利率或 SG&A 槓桿率的不同因素。所以我想說，沒有一個大的懸崖可以做到這一點。但隨著我們每年繼續擴大自有品牌，隨著我們繼續增加我們在小客戶中的份額，這些事情中的每一個都有增量增長。隨著數字技術推動額外的有機銷售增長，我們變得越來越好，業務的自然調整就會出現。

So I don't think it's -- that we're not -- we're waiting for some year where it just jumps. Obviously, that's what happened this year and -- but more so that distribution to grind and every year when you look at and making incremental improvements in your business that drive out 30 basis points of EBITDA margin improvement.

所以我不認為它 - 我們不是 - 我們正在等待它跳躍的一年。顯然，這就是今年發生的事情——但更多的是，當你查看並逐步改進你的業務時，每年都會發生分配，從而推動 EBITDA 利潤率提高 30 個基點。

Our next question comes from the line of Damian Karas with UBS.

我們的下一個問題來自瑞銀集團的 Damian Karas。

Congrats on the great year.

祝賀偉大的一年。

Thank you, Damian.

謝謝你，達米安。

I have a follow-up question on price. Would you guys maybe be able to provide a little bit color on where the incremental price is coming from since the third quarter? Which product categories? And what's the timing of your most recent transactions you've taken? And just curious if there's any conversation around whether there's any possible further price inflation from here?

我有一個關於價格的後續問題。你們能否就第三季度以來增量價格的來源提供一些顏色？哪些產品類別？您最近進行的交易的時間是什麼時候？只是想知道是否有任何關於這裡是否有可能進一步的價格通脹的討論？

So we saw really what you saw. It was in the second half of the year, prices ramp up. Here in the first quarter of this year, a lot of those manufacturers who don't -- what we saw in the second half of last year was a lot of increase with things like PVC pipe and fertilizers that ramp up -- that reprice regularly. In the first quarter of this year, prices continued. We're seeing continued price increases. But more from, I would call more highly manufactured products where the suppliers increase their price put out a new price for the year.

所以我們真的看到了你所看到的。那是在今年下半年，價格呈上升趨勢。今年第一季度，很多製造商沒有——我們在去年下半年看到的是 PVC 管和化肥等產品的大幅增長——定期重新定價.今年一季度，價格繼續上漲。我們看到價格持續上漲。但更多的是，我會稱之為供應商提高價格並為當年制定新價格的更多高度製造的產品。

So we are seeing some of that coming in right now and price has not dropped off here in what we've seen so far and probably won't in the first quarter. But then in the second half of the year, as Doug alluded to, we start comping the higher prices, maybe even some of those commodity-type items, let's say, fertilizer or PVC pipe may even go down a little year-over-year. But let's say, 80% of our business where it's kind of more stable products. Those, a, haven't risen as dramatically as some of the other products, more consistent pricing increases, and those products, we would expect kind of the price that's going in here at the beginning of 2022, we're probably we would expect those to hold for the full year.

因此，我們現在看到其中一些正在出現，而且到目前為止，我們所看到的價格並沒有下降，而且可能不會在第一季度下降。但到了下半年，正如 Doug 提到的那樣，我們開始計算更高的價格，甚至可能是一些商品類型的項目，比方說，肥料或 PVC 管甚至可能會同比下降一點.但是可以說，我們 80% 的業務都是更穩定的產品。那些，a，沒有像其他一些產品那樣大幅上漲，更一致的價格上漲，以及那些產品，我們預計 2022 年初這裡的價格，我們可能會預計那些持有一整年。

Okay. That's really helpful. And I just want to ask you about free cash flow. I think you alluded to some working capital investments maybe led to a little bit lower the 75% net income conversion. How are you thinking about free cash flow this year? What are your expectations there?

好的。這真的很有幫助。我只想問你關於自由現金流的問題。我認為你提到一些營運資本投資可能導致 75% 的淨收入轉換率略低。您如何看待今年的自由現金流？你在那裡有什麼期望？

Yes. We generally think that we want to hit net income with free cash flow. So 100%. I think if you look at our 3-year average, we're at about 110%. Last year was like 170%, was really lumpy, if you will. And so we -- this year, with our investments in working capital, kind of really preparing us for the DC transition. In addition, everything we're buying now is significantly higher in inventory costs than it was last year. So that inflation increased at the end of the year for our purchases also kind of negatively impacted it. So in general, we look at cash flow kind of on a multiyear basis, but our goal each year is 100% conversion of net income.

是的。我們通常認為我們想用自由現金流來增加淨收入。所以 100%。我想如果你看看我們的 3 年平均值，我們大約是 110%。如果你願意的話，去年大約是 170%，真的很不穩定。因此，我們 - 今年，通過我們對營運資金的投資，我們確實為 DC 轉型做好了準備。此外，我們現在購買的所有東西的庫存成本都比去年高得多。因此，我們的購買在年底時通貨膨脹率上升也對其產生了負面影響。所以總的來說，我們在多年的基礎上看待現金流，但我們每年的目標是 100% 的淨收入轉換。

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

女士們，先生們，我們的問答環節到此結束。我會將發言權轉回給 Black 先生徵求任何最後意見。

Thank you, and thank you all again for joining us today. We appreciate your interest in SiteOne. We're excited about where we are today and where we're going, and we look forward to speaking to you again after our first quarter 2022. I'd like to take this opportunity again to thank our tremendous associates for all that they do for us and our customers and suppliers. It's really been a great partnership as we've navigated in the landscape industry. Have a great day.

謝謝大家，再次感謝大家今天加入我們。感謝您對 SiteOne 的關注。我們對今天所處的位置和未來的發展方向感到興奮，我們期待在 2022 年第一季度之後再次與您交談。我想再次藉此機會感謝我們偉大的同事所做的一切為我們和我們的客戶和供應商。當我們在景觀行業中航行時，這確實是一個很好的合作夥伴關係。祝你有美好的一天。

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

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與。