Tecnoglass Inc (TGLS) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Tecnoglass Third Quarter 2023 Earnings Conference Call.

您好，歡迎參加 Tecnoglass 2023 年第三季財報電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference being recorded. It is now my pleasure to introduce your host, Brad Cray, Investor Relations. Thank you. You may begin.

提醒一下，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係部布拉德·克雷 (Brad Cray)。謝謝。你可以開始了。

Thank you for joining us for Tecnoglass' Third Quarter 2023 Conference Call. A copy of the slide presentation to accompany this call may be obtained on the Investors section of the Tecnoglass website. Our speakers for today's call are Chief Executive Officer, Jose Manuel Daes, Chief Operating Officer, Chris Daes; and Chief Financial Officer, Santiago Giraldo.

感謝您參加 Tecnoglass 2023 年第三季電話會議。您可以在 Tecnoglass 網站的投資者部分取得本次電話會議隨附的幻燈片簡報的副本。今天電話會議的發言人是執行長 Jose Manuel Daes、營運長 Chris Daes；財務長聖地牙哥‧吉拉爾多 (Santiago Giraldo)。

I'd like to remind everyone that matters discussed in this call, except for historical information, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Tecnoglass' current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary in a material nature from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors and other risks and uncertainties affecting the operation of Tecnoglass' business.

我想提醒大家，本次電話會議中討論的事項，除歷史資訊外，均為1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述，包括有關未來財務業績、未來增長和未來收購的陳述。這些陳述是基於 Tecnoglass 當前的期望或信念，並可能受到不確定性和情況變化的影響。由於經濟、業務、競爭和/或監管因素的變化以及影響 Tecnoglass 業務運營的其他風險和不確定性，實際結果可能與本聲明中明示或暗示的結果存在重大差異。

These risks, uncertainties and contingencies are indicated from time to time in Tecnoglass' filings with the SEC. The information discussed during the call is presented in light of such risks. Further, investors should keep in mind that Tecnoglass' financial results in any particular period may not be indicative of future results. Tecnoglass is under no obligation to and expressly disclaims any obligation to update or alter its forward-looking statements whether as a result of new information, future events, changes in assumptions or otherwise.

Tecnoglass 向 SEC 提交的文件中會不時指出這些風險、不確定性和意外事件。電話會議中討論的資訊是根據此類風險提出的。此外，投資者應記住，Tecnoglass 在任何特定期間的財務表現可能並不代表未來的表現。 Tecnoglass 沒有義務並明確否認有任何義務更新或更改其前瞻性陳述，無論是由於新資訊、未來事件、假設變更或其他原因。

I will now turn the call over to José Manuel, beginning on Slide #4.

我現在將把電話轉給何塞·曼努埃爾（José Manuel），從幻燈片#4 開始。

Thank you, Brad, and thank you, everyone, for participating on today's call. We are pleased to report yet another quarter of strong results, underscoring the resiliency of our business in the volatile macroeconomic environment. Our revenues increased to a third quarter record of $210.7 million, marking our 12th straight quarter of entirely organic year-over-year growth. Our multifamily and commercial business was again the main driver of our top line growth, expanding 6% year-over-year to $122.9 million even in a tough year-over-year comp.

謝謝布拉德，也謝謝大家參加今天的電話會議。我們很高興地報告又一個季度的強勁業績，突顯了我們的業務在動盪的宏觀經濟環境中的彈性。我們的第三季營收增至創紀錄的 2.107 億美元，標誌著我們連續第 12 季實現完全有機年成長。我們的多戶住宅和商業業務再次成為營收成長的主要動力，即使在同比比較嚴峻的情況下，仍同比增長 6% 至 1.229 億美元。

Compared to the third quarter of 2021, multifamily commercial revenue increased by 70%. We continue to see healthy commercial demand, from both high demand for our products and increased commercial activity in our key geographies. This drove an increase in backlog to a record of $836 million at quarter end. Sales of a highly innovative single-family residential products grew 2% year-over-year to a record of $87.8 million as we gain market share in key geographies, despite a tough comp in the prior year period and overall challenging macroeconomic conditions.

與 2021 年第三季相比，多戶商業收入成長了 70%。我們繼續看到健康的商業需求，無論是對我們產品的高需求還是我們主要地區商業活動的增加。這使得季度末積壓訂單增加至創紀錄的 8.36 億美元。儘管去年同期競爭激烈且整體宏觀經濟條件充滿挑戰，但我們在關鍵地區的市場份額不斷增加，高度創新的單戶住宅產品銷售額同比增長 2%，達到創紀錄的 8,780 萬美元。

Compared to 2021, single-family residential revenues increased 48% in the quarter. Looking at our bottom line results, we produced an industry-leading adjusted EBITDA margin above 30%, which we attribute to our disciplined cost controls and previously implemented high-return facility enhanced. Year-over-year, our margins were impacted by a non-cash effect related to the appreciation of the Colombian peso, which has partially reversed course since the end of the quarter. Our proven working capital management as well as the continued growth in our shorter cash cycle, single-family residential business drove a strong third quarter cash flow from operations of $51.3 million.

與 2021 年相比，本季單戶住宅收入成長了 48%。從我們的底線結果來看，我們實現了業界領先的調整後 EBITDA 利潤率超過 30%，這歸功於我們嚴格的成本控制和先前實施的高回報設施的增強。與去年同期相比，我們的利潤率受到與哥倫比亞比索升值相關的非現金效應的影響，自本季末以來，哥倫比亞比索升值已部分逆轉。我們經過驗證的營運資本管理以及更短的現金週期的持續成長，單戶住宅業務推動第三季營運現金流強勁，達到 5,130 萬美元。

With external cash generation, we executed approximately 40% of our 50 million share repurchase program since midyear. This is in line with our commitment to return value to shareholders. Our strong capital position is also giving us the flexibility to capitalize on attractive and strategic growth opportunities, such as our recently announced entrance into the vinyl windows market. We expect this move to widen the reach of our innovative product portfolio and provide a high return on investment capital. We have already invested a significant portion of the anticipated CapEx required to add an additional $300 million in annual revenues to our business in the coming years.

透過外部現金生成，自年中以來我們執行了 5,000 萬股股票回購計畫中的約 40%。這符合我們為股東回報價值的承諾。我們強大的資本實力也使我們能夠靈活地利用有吸引力的策略成長機會，例如我們最近宣布進入乙烯基窗戶市場。我們預計此舉將擴大我們創新產品組合的範圍並提供高投資資本回報。我們已經投入了預期資本支出的很大一部分，以便在未來幾年為我們的業務增加 3 億美元的年收入。

In summary, we are proud of our strong track record of returns and remain as confident as ever in our ability to continue delivering above-market performance while generating robust cash flow and value to our shareholders.

總而言之，我們對我們強勁的回報記錄感到自豪，並一如既往地相信我們有能力繼續提供高於市場的業績，同時為股東創造強勁的現金流和價值。

I will now turn the call over to Chris to provide additional operating highlights.

我現在將把電話轉給克里斯，以提供更多營運亮點。

Thank you, José Manuel. Moving to Slide #5. In October, we were pleased to announce the relocation of our global headquarters to Miami, Florida. This strategic move aligns with over 95% of our revenues being sourced from the U.S., and it aligns with our long-term strategy to become an even more U.S.-centric company as we continue our organic geographical penetration into this market.

謝謝你，何塞·曼努埃爾。轉到投影片 #5。十月，我們很高興地宣布將我們的全球總部遷至佛羅裡達州邁阿密。這項策略性舉措符合我們 95% 以上的收入來自美國的情況，也符合我們的長期策略，即隨著我們繼續有機地理滲透到這個市場，成為一家更以美國為中心的公司。

These moves has been very well received so far by customers, employees and other stakeholders. We look forward to fostering the long-term partnerships in the U.S. that will continue to fuel our growth strategy. Looking at our results during the quarter, we saw positive momentum in our multifamily commercial business as healthy bidding activity and project wins continued during the quarter. Our backlog grew 20% year-over-year to a record of $836 million. This was an acceleration in growth in the second quarter of 2023. Despite the high interest rate environment, we continue to see favorable trends in our key markets, particularly in the Southeastern U.S.

迄今為止，這些舉措受到了客戶、員工和其他利害關係人的好評。我們期待在美國建立長期合作夥伴關係，這將繼續推動我們的成長策略。縱觀本季的業績，我們看到多戶型商業業務呈現積極勢頭，因為本季持續健康的投標活動和專案中標。我們的積壓訂單年增 20%，達到創紀錄的 8.36 億美元。這是 2023 年第二季的加速成長。儘管利率環境較高，但我們的主要市場（特別是美國東南部市場）繼續看到有利的趨勢。

New business wins and the resumption of projects that were previously put on hold in the planning stages during the pandemic are driving the acceleration of our backlog. As a reminder, approximately 2/3 of our backlog is mainly composed of medium and high-rise residential buildings, which are currently outperforming most other commercial sectors. The last 1/3 is related to a wide variety of commercial projects where demand remains firm. Our single-family residential growth trajectory is not fully captured in our backlog given the shorter-term spot ration of projects. The strong bidding activity we are seeing also signals attractive project opportunities in the near future, helping to maintain our positive book-to-bill ratio above 1.1x over the past 11 consecutive quarters.

新業務的贏得以及先前在疫情期間擱置在規劃階段的項目的恢復正在推動我們積壓的速度加快。需要提醒的是，我們大約 2/3 的積壓訂單主要由中高層住宅大樓組成，目前表現優於大多數其他商業建築。最後 1/3 與需求依然堅挺的各種商業項目有關。鑑於該項目的短期現貨配給，我們的單戶住宅成長軌跡並未完全反映在我們的積壓訂單中。我們看到的強勁招標活動也預示著不久的將來會出現有吸引力的項目機會，有助於我們在過去連續 11 個季度將訂單出貨比保持在 1.1 倍以上。

Our strong book-to-bill of 1.3x at quarter end and our demonstrated ability to convert backlog into revenue is contributing to our expectation for another year of double-digit growth in 2024. Our pipeline gives us visibility on projects into 2025. We also see additional avenues for growth in our single-family residential business through our showrooms, expansion and recent entrants into the vinyl windows market, which represents an estimated 60% of the $26 billion architectural Windows market.

我們季度末的強勁訂單出貨比為1.3 倍，並且我們已證明有能力將積壓訂單轉化為收入，這有助於我們預計2024 年將再次實現兩位數增長。我們的管道使我們能夠了解2025年的項目。我們還透過我們的陳列室、擴張和最近進入乙烯基窗戶市場，我們的單戶住宅業務有更多的成長途徑，該市場估計佔 260 億美元建築窗戶市場的 60%。

Moving to Slide #6. The static entry into vinyl windows and the expansion of our showrooms should help us generate additional organic growth as we significantly expand our addressable market. These factors, in conjunction with our growing backlog give us confidence in our ability to grow share. Our accomplishments during the quarter and the strategic moves we are taking reflect our commitment to value creation, strengthening our customers' relationship and streamlining our operations to generate meaningful returns for all our stakeholders.

轉到投影片 #6。隨著我們顯著擴大我們的目標市場，靜態進入乙烯基窗戶並擴大我們的陳列室應該有助於我們產生額外的有機成長。這些因素，加上我們不斷增加的積壓訂單，讓我們對增加份額的能力充滿信心。我們在本季所取得的成就以及我們正在採取的策略性舉措反映了我們對創造價值、加強客戶關係和簡化營運的承諾，以為所有利害關係人創造有意義的回報。

I will now turn the call over to Santiago to discuss our results and updated outlook for 2023.

我現在將把電話轉給聖地牙哥，討論我們的結果和 2023 年的最新展望。

Thank you, Christian. Turning to Slide #7. During the third quarter, we achieved record single-family residential revenues which grew organically by 2.4% year-over-year and by 47.7%, compared to the third quarter of 2021. Our ability to grow single-family revenues on a difficult prior year comparison, while navigating a complex macro environment, is a testament to the resilience of our vertically-integrated business model and strategically located operations. We are also benefiting from the favorable secular trend of population migration into the Southern U.S., where we conduct a significant portion of our business.

謝謝你，克里斯蒂安。轉向投影片 #7。第三季度，我們的單戶住宅收入創下歷史新高，同比有機增長 2.4%，與 2021 年第三季度相比增長 47.7%。我們有能力在去年困難的情況下增加單戶住宅收入在復雜的宏觀在環境中進行比較，證明了我們垂直整合的業務模式和策略性營運的彈性。我們也受益於人口遷移到美國南部的有利長期趨勢，我們的大部分業務都在那裡開展。

These factors are helping to differentiate our business despite higher interest rates in a broader macro pressures. As we've highlighted in recent quarters, we see market share upside to our single-family revenues to our broadening dealer base, driven by the interest in our low lead times and new product introductions. We are expanding geographically throughout the highly attractive solar market, adding showrooms in other geographies, and our new vinyl initiative provides significant avenues for revenue growth and end market diversification.

儘管在更廣泛的宏觀壓力下利率上升，但這些因素有助於使我們的業務脫穎而出。正如我們在最近幾季所強調的那樣，由於對我們的短交貨時間和新產品推出的興趣，我們看到我們的單戶收入的市場份額上升，我們不斷擴大的經銷商基礎。我們正在整個極具吸引力的太陽能市場進行地理擴張，在其他地區增加陳列室，我們新的乙烯基計劃為收入成長和終端市場多元化提供了重要途徑。

To that point on Slide #8, I would like to highlight a few key points from our recent strategic entry into vinyl windows, as José Manuel and Christian touched on early. During the quarter, we were thrilled to announce our entry into the vinyl window market, which represents an estimated 60% of the $26 billion architectural window market and solidifies our position as an industry leader in architectural windows and glass products. We have already made a significant portion of the anticipated CapEx investments to add an incremental $300 million in annual revenues in the coming years, providing a strong foundation to grow our vinyl presence. Our entry into the vinyl window market is expected to provide a range of benefits to Tecnoglass and our customers.

就幻燈片 #8 中的這一點而言，我想強調我們最近策略進入乙烯基窗戶的幾個關鍵點，正如 José Manuel 和 Christian 早些時候提到的那樣。本季度，我們很高興地宣布進入乙烯基窗戶市場，該市場估計佔 260 億美元建築窗戶市場的 60%，鞏固了我們作為建築窗戶和玻璃產品行業領導者的地位。我們已經進行了預期資本支出投資的很大一部分，以在未來幾年增加 3 億美元的年收入，為擴大我們的黑膠業務奠定了堅實的基礎。我們進入乙烯基窗戶市場預計將為 Tecnoglass 和我們的客戶帶來一系列好處。

This strategic move more than doubles our addressable market makes geographical expansion easier given the end customer preference for vinyl products in many U.S. regions, leverages our current distribution base given that many existing dealers already sell both aluminum and vinyl windows, creates a more efficient thermal performance, aligning well with ongoing sustainability trends and increased demand for energy-efficient products, and we have the technical expertise to produce vinyl products and capture an attractive margin on incremental revenues.

鑑於美國許多地區的最終客戶對乙烯基產品的偏好，這項策略性舉措使我們的目標市場增加了一倍多，使地理擴張變得更加容易，考慮到許多現有經銷商已經銷售鋁窗和乙烯基窗戶，利用我們當前的分銷基礎，創造更高效的熱性能，與持續的可持續發展趨勢和對節能產品不斷增長的需求保持一致，我們擁有生產乙烯基產品的技術專長，並在增量收入中獲得有吸引力的利潤。

Production will commence in a couple of weeks for the first orders to be delivered by year-end, and we already have orders for 2024 with many other customers requesting samples and product demos. This early traction with existing customers validates our strategic entry into this market. We are excited by the reception so far and for the immense growth opportunities we see in this end market.

生產將於幾週內開始，首批訂單將於年底交付，我們已經收到了 2024 年的訂單，許多其他客戶正在索取樣品和產品演示。現有客戶的早期吸引力驗證了我們進入該市場的策略。我們對迄今為止的反響以及我們在這個終端市場看到的巨大成長機會感到興奮。

Turning to the drivers of revenue on Slide #10. Total revenues increased 4.4% year-over-year to $210.7 million for the third quarter. This increase was led by growth in our multifamily and commercial activity, as well as growth in single-family residential revenues, largely reflecting additional market share gains. Looking at the profit drivers on Slide #11 and 12. Adjusted EBITDA for the third quarter of 2023 was $71.3 million or 33.8% of revenues. Compared to $78.5 million or 38.9% of revenues in the prior year quarter. The change was primarily attributable to a non-cash foreign exchange impact on gross margins related to the peso as functional currency, but partially offset by lower SG&A dollars. SG&A was $29.5 million compared to $35.2 million in the prior year quarter, with the decrease attributable to lower shipping and commission expenses in a non-recurring settlement charge in the third quarter of 2022, partially offset by increased corporate costs to support a larger operation. As a percentage of total revenues, SG&A for the third quarter improved 340 basis points to 14%.

轉向投影片 #10 上的收入驅動因素。第三季總營收年增 4.4% 至 2.107 億美元。這一增長是由我們的多戶型和商業活動的增長以及單戶住宅收入的增長所帶動的，這在很大程度上反映了市場份額的增加。檢視投影片 #11 和 12 上的利潤驅動因素。2023 年第三季調整後 EBITDA 為 7,130 萬美元，佔營收的 33.8%。相比之下，去年同期營收為 7,850 萬美元，佔營收的 38.9%。這項變更主要歸因於與作為功能貨幣的比索相關的非現金外匯對毛利率的影響，但部分被SG&A美元下降所抵消。 SG&A 為 2,950 萬美元，而去年同期為 3,520 萬美元，下降的原因是 2022 年第三季非經常性結算費用中的運輸和佣金費用減少，但部分被支持更大運營的企業成本增加所抵消。第三季的 SG&A 佔總收入的百分比提高了 340 個基點，達到 14%。

Third quarter gross profit was $90.5 million, representing a 43% gross margin. This compared to gross profit of $105.3 million, representing a 52.2% gross margin in the prior year quarter. The year-over-year change in gross margin mainly reflected a non-cash 660 basis point unfavorable FX impact. This was due to the markup of inventory in our functional currents attributable to the significant and rapid depreciation of the Colombian peso.

第三季毛利為 9,050 萬美元，毛利率為 43%。相較之下，去年同期的毛利為 1.053 億美元，毛利率為 52.2%。毛利率年變動主要反映了 660 個基點的非現金不利匯率影響。這是由於哥倫比亞比索大幅快速貶值導致我們當前的庫存增加。

Specifically, inventories purchased during the second quarter of 2023 at a weaker Colombian peso, ran through the P&L during the third quarter of 2023 at a much stronger Colombian peso. These accounting dynamics related to the currency translation from the functional currency and had no cash flow effect given that both the actual inventory purchase and the subsequent sale took place in U.S. dollars.

具體來說，2023 年第二季以較弱的哥倫比亞比索購買的庫存，在 2023 年第三季以較強勁的哥倫比亞比索計入損益表。這些會計動態與功能貨幣的貨幣換算有關，並且考慮到實際庫存採購和隨後的銷售均以美元進行，因此沒有現金流量影響。

Separately, approximately 25% of our cost and expenses do get paid in the Colombian peso. So the recent currency revaluation, we have an additional margin impact of 150 to 200 basis points year-over-year. Looking forward, the majority of the impacted inventory has been worked down and FX rates on an average have partially reversed course since quarter end. That should allow for less accounted variability results through year-end. We expect to produce gross margins around normalized levels through the remainder of the year with no significant FX volatility outside from 150 to 200 basis point effect from peso-denominated cost and expenses against similar to ['22] FX comparables to year-end.

另外，我們大約 25% 的成本和開支確實以哥倫比亞比索支付。因此，最近的貨幣重估，我們對利潤率的影響比去年同期增加了 150 至 200 個基點。展望未來，大部分受影響的庫存已經減少，平均匯率自季度末以來已部分逆轉。這應該可以減少到年底的會計變異結果。我們預計，今年剩餘時間裡，毛利率將維持在正常水準附近，除比索計價的成本和費用與年底的['22]外匯相比，匯率波動不會出現 150 至 200 個基點的顯著波動。

Therefore, we now expect gross margins will be in the range of 47% to 49% for the full year 2023.

因此，我們目前預計 2023 年全年毛利率將在 47% 至 49% 之間。

Now, looking at our strong cash flow and improved leverage on Slide #13. In the third quarter, we delivered exceptional cash flow generation of $51.3 million, bringing our trailing 12-month operating cash flow to a record level of $144 million. During the quarter, we had capital expenditures of $24.3 million, which included payments for previously purchased land for future potential capacity expansion. CapEx also included a significant portion of the previously disclosed investments in facilities and operational infrastructure to enter the vinyl window market. We expect strong free cash flow to continue through year-end, largely given an expected decrease in capital expenditures in the fourth quarter. Our impressive cash generation has been made possible by our careful working capital management, more favorable mix of revenues, higher profitability and reduced interest expense, providing us with significant financial flexibility to drive additional value in our business.

現在，看看幻燈片#13 上我們強勁的現金流和改善的槓桿率。第三季度，我們創造了 5,130 萬美元的出色現金流，使我們過去 12 個月的營運現金流達到 1.44 億美元的創紀錄水平。本季度，我們的資本支出為 2,430 萬美元，其中包括為未來潛在產能擴張而購買的土地的付款。資本支出還包括先前披露的進入乙烯基窗戶市場的設施和營運基礎設施投資的很大一部分。我們預計強勁的自由現金流將持續到年底，這主要是考慮到第四季度資本支出的預期減少。我們謹慎的營運資本管理、更有利的收入組合、更高的獲利能力和更低的利息支出使我們能夠產生令人印象深刻的現金，為我們提供了巨大的財務靈活性，以推動我們業務的附加價值。

This includes our recent investments to enter into the highly attractive vinyl window market and share repurchases. In total, we returned $4.3 million in cash dividends and $8.9 million in share repurchases during the quarter and repurchased an additional $11.2 million of shares after the quarter ended with approximately $30 million remaining under the current repurchase authorization as of November 6, 2023. At quarter end, our leverage ratio remained near a record low level of 0.2x net debt to LTM adjusted EBITDA, down from 0.6x in the prior year quarter.

這包括我們最近進入極具吸引力的乙烯基窗戶市場的投資和股票回購。總的來說，我們在本季返還了430 萬美元的現金股利和890 萬美元的股票回購，並在本季結束後額外回購了1,120 萬美元的股票，截至2023 年11 月6 日，目前的回購授權還剩約3,000 萬美元。最終，我們的槓桿率仍接近創紀錄的低水平，淨債務與 LTM 調整後 EBITDA 比率為 0.2 倍，低於去年同期的 0.6 倍。

As of September 30, we had a cash balance of $119 million and availability under our committed revolving credit facilities of $170 million, resulting in total liquidity of approximately $289 million, giving us significant financial flexibility to execute growth, invest in our business and return cash to shareholders.

截至9 月30 日，我們的現金餘額為1.19 億美元，承諾的循環信貸額度下的可用資金為1.7 億美元，流動性總額約為2.89 億美元，為我們提供了巨大的財務靈活性，以實現成長、投資業務和返還現金給股東。

On Slide #14, I would like to reiterate our success in generating strong returns for our shareholders. On average, over the past 3 years, our stronger profitability and meaningful step-up in cash flow generation, have driven significant average returns. When comparing our ROE and ROIC metrics to those of U.S. building product peers, the returns on reinvestment into our business plus dividends have driven substantially higher value to our shareholders, further validating our strategic approach to driving returns.

在投影片 #14 上，我想重申我們在為股東創造豐厚回報方面所取得的成功。平均而言，在過去三年中，我們在更強的獲利能力和現金流產生方面的顯著提升推動了顯著的平均回報。當我們的 ROE 和 ROIC 指標與美國建築產品同業進行比較時，我們業務再投資的回報加上股利為我們的股東帶來了更高的價值，進一步驗證了我們推動回報的策略方法。

As you can see on Slide 16, the upward trajectory of our revenue and adjusted EBITDA remains positive, and there is a lot of runway for growth with the recent capacity additions and entrance into the vinyl window market to get us over $1 billion of annual revenue. We are as confident as ever in our ability to maintain our track record of exceptional growth and above market returns.

正如您在幻燈片16 中看到的，我們的收入和調整後EBITDA 的上升軌跡仍然為正，而且隨著最近產能的增加和進入乙烯基窗戶市場，我們還有很大的增長空間，使我們的年收入超過10 億美元。我們一如既往地相信自己有能力維持卓越的成長記錄和高於市場的回報。

Now moving to our outlook on Slide 17. Based on our strong results so far and the expected timing of deliveries through year-end in our residential and commercial markets, we are adjusting our outlook for revenue. We now expect full year 2023 revenue to be in the range of $835 million to $848 million. This outlook represents entirely organic growth of 17% at the midpoint. While our backlog has maintained a strong growth trajectory, the timing of deliveries for the rest of the year has been impacted by customer project delays, carrying some invoicing into the first half of 2024. Accounting for the impact of unfavorable foreign currency, mainly in the third quarter, and the expectation for a higher mix of installation revenue during the fourth quarter as a result of the aforementioned order delays, we are updating our expectations for adjusted EBITDA to be in the range of $300 million to $308 million, representing a 14% growth at the midpoint of the range.

現在轉向我們對幻燈片 17 的展望。根據我們迄今為止的強勁業績以及住宅和商業市場到年底的預期交付時間，我們正在調整我們的收入前景。我們現在預計 2023 年全年營收將在 8.35 億至 8.48 億美元之間。這一前景代表了中點 17% 的完全有機成長。雖然我們的積壓訂單保持了強勁的成長軌跡，但今年剩餘時間的交貨時間受到了客戶專案延誤的影響，部分發票要到 2024 年上半年才能開立。考慮到不利外幣的影響，主要是在上述訂單延遲，我們預計第四季度的安裝收入將在第三季度增加，因此我們將調整後EBITDA 的預期更新為3 億至3.08 億美元，佔14%增長在該範圍的中點。

As I discussed earlier, we expect gross margins to be in the range of 47% to 49% for full year 2023. As previously discussed, cash flow from operations and free cash flow are expected to be strong for the remainder of the year, given the majority of capital expenditures related to facility automation, expansion and vinyl related investments having been completed.

正如我之前討論的，我們預計 2023 年全年毛利率將在 47% 至 49% 之間。如前所述，鑑於與設施自動化、擴建和乙烯基相關投資相關的大部分資本支出已經完成。

In summary, we are pleased with our results year-to-date. Our backlog of multifamily and commercial projects has accelerated in our single-family residential expansion strategy continues to gain traction. With our latest round of facility enhancements completed and the incredible opportunity in vinyl windows, we have confidence in our ability to produce another year of double-digit revenue growth with industry-leading margins and significant cash flow generation in 2024.

總而言之，我們對今年迄今為止的結果感到滿意。我們的多戶住宅和商業項目積壓加速，單戶住宅擴張策略持續受到關注。隨著我們最新一輪設施改進的完成以及乙烯基窗戶領域令人難以置信的機遇，我們有信心在 2024 年再次實現兩位數的收入增長，實現行業領先的利潤率和大量的現金流。

With that, we will be happy to answer your questions. Operator, please open the line for questions.

這樣，我們將很樂意回答您的問題。接線員，請開通提問線。

(Operator Instructions)

（操作員說明）

Our first question comes from Alex Rygiel with B. Riley.

我們的第一個問題來自 Alex Rygiel 和 B. Riley。

José, Christian, very nice quarter. A few questions here. As it relates to 2024, I understand you're guiding towards double-digit growth. Can you be a little bit more specific here? Is this revenue or EPS or both? And how do you look at the growth rates within residential and commercial?

何塞，克里斯蒂安，非常好的季度。這裡有幾個問題。就 2024 年而言，我了解您正在指導實現兩位數的成長。您能在這裡說得更具體一點嗎？這是營收還是每股盈餘，還是兩者兼具？您如何看待住宅和商業領域的成長率？

Hello. We are looking at a very strong growth in both areas because the backlog of commercial is very high, and we know we're going to increase not double digits but higher double digits, and then there was a (inaudible) organically because we have a new line the vinyl line, and with the vinyl line everything is now we hope 3 or 4 years, the vinyl line is going to be par par with the aluminum. So we are expecting a big increase in residential and commercial.

你好。我們預計這兩個領域都會出現非常強勁的成長，因為商業積壓非常高，而且我們知道我們將增加的不是兩位數，而是更高的兩位數，然後有一個（聽不清楚）有機成長，因為我們有新生產線是乙烯基生產線，隨著乙烯基生產線的發展，我們希望在 3 或 4 年內，乙烯基生產線將與鋁生產線相同。因此，我們預計住宅和商業將大幅成長。

Alex, just as a follow-up, the projection is for top line revenue. We haven't drilled down to get to the EPS level, but you'll sure get that after the next call, obviously.

亞歷克斯，作為後續行動，預測是針對頂線收入的。我們還沒有深入了解每股收益水平，但顯然，您肯定會在下一次電話會議後了解這一點。

And then secondly, as it relates to the vinyl windows strategy, do you expect this to be more of an R&R product or -- is this -- are you going after the sort of the new residential market as well? And maybe talk about the margin profile of that vinyl product versus your traditional aluminum product.

其次，由於它與乙烯基窗戶策略相關，您是否希望這更像是 R&R 產品，或者 - 是這樣 - 您是否也在追求新的住宅市場？也許還可以談談乙烯基產品與傳統鋁產品的利潤概況。

The margin is about the same, and the vinyl line goes everywhere that we are not today. I mean from Tampa and Orlando north, most of the sales for residential are vinyl. 60% of the of the sales of windows nationwide are vinyl and only 30% aluminum. So we expect a very high growth on the vinyl and also, we expect high growth on the commercial side of the aluminum.

利潤率大致相同，乙烯基生產線遍布我們今天所沒有的任何地方。我的意思是，從坦帕和奧蘭多北部來看，大部分住宅銷售都是黑膠唱片。全國窗戶銷售的 60% 是乙烯基窗戶，只有 30% 是鋁窗戶。因此，我們預計乙烯基材料將出現非常高的成長，我們預計鋁材的商業方面也會出現高成長。

Sam, your line is live.

薩姆，您的線路已上線。

This is Sam Darkatsh from Raymond James. So a couple two, three questions, if I could. First, the customer project delays that you cited Santiago, can you put a little more color on this in terms of quantification in sales, what fourth quarter EBITDA impact of that delay or those delays might be? And also give a little bit of color as to why is this going to be a 4Q into 1Q delay? Or is it a little bit more protracted than that?

我是雷蒙德詹姆斯的山姆達卡什。如果可以的話，我想問兩三個問題。首先，您提到聖地牙哥的客戶專案延遲，您能否在銷售量化方面對此進行更多說明，該延遲或這些延遲可能對第四季度 EBITDA 產生什麼影響？也請說明為什麼會出現 4Q 到 1Q 的延遲？或者比這更持久一點？

I'll let José take the question as to why and see is so much closer to the market and then I'll follow up with the numbers and EBITDA impact, if you like.

我會讓 José 回答為什麼這樣的問題，看看它離市場有多近，然後我會跟進數字和 EBITDA 影響，如果你願意的話。

Yes. Well, a lot of commercial projects are delayed around $10 million a month, that delayed. And the main reason was because the banks for 3, 4 months, we're not lending. Somehow, they opened the valve again and now all the projects are going and we still have the same backlog and more and we keep getting lots of work on the pipeline. I mean, I believe commercial is going to hit it really, really good next year.

是的。嗯，很多商業項目每個月都會延遲 1000 萬美元左右，這就是延遲。主要原因是銀行已經有3、4個月不放款我們了。不知何故，他們再次打開了閥門，現在所有項目都在進行，我們仍然有相同的積壓，甚至更多，我們不斷在管道上進行大量工作。我的意思是，我相信明年的商業廣告將會非常非常好。

So I'll follow up with the numbers then. Essentially, if you take $20 million to $30 million, which José referring to, let's take the midpoint of that $25 million the operating leverage that we get on the manufacturing revenues is -- equates to about $8 million to $9 million in EBITDA, given the fact that about 30% to 35% of our costs and expenses are fixed costs. So if you do the math, that equates to about $8 million to $9 million that is moving into '24. As far as the timing, I would say, but I'll let José reiterate that, that's probably revenue that we'll be realized in the first half of '24.

所以我會跟進這些數字。本質上，如果你取 2000 萬至 3000 萬美元（José 提到的），讓我們取 2500 萬美元的中點，我們從製造收入中獲得的營運槓桿相當於 EBITDA 約 800 萬至 900 萬美元，假設事實上，我們大約30% 到35% 的成本和開支是固定成本。因此，如果您計算一下，這相當於進入 24 年的資金約為 800 萬至 900 萬美元。至於時間安排，我會說，但我會讓 José 重申一下，這可能是我們將在 24 年上半年實現的收入。

And then as you heard on the call, some of that revenue is being replaced by some installation revenue that carries a much lower margin. So when you're having about $10 million of installation in the mix, the impact to EBITDA is about $3 million on that. But the brunt of the effect is coming from the operating leverage that we're not seeing based on those revenues moving into 2024.

然後，正如您在電話中聽到的那樣，部分收入正在被利潤率低得多的安裝收入所取代。因此，當您的安裝量約為 1000 萬美元時，對 EBITDA 的影響約為 300 萬美元。但影響最大的是營運槓桿，而根據 2024 年的收入來看，我們並沒有看到這一點。

Which leads me perfectly to my next question. Thank you, Santiago. There's a lot of moving parts in gross margin right now, and you gave some color around expectations for normalization in the fourth quarter. Can you be a bit more specific though in terms of what you think the actual gross margin might be since the implied guidance range is really wide?

這完美地引出了我的下一個問題。謝謝你，聖地牙哥。目前毛利率有很多變化，您對第四季正常化的預期給了一些色彩。由於隱含的指導範圍確實很寬，您能否更具體地說明您認為實際毛利率可能是多少？

So the implied margin range for the full year equates to 47% to 49%. So depending on where you are in that new guidance I would say that Q4 would be about 45%, so sequentially better than Q3. But the run rate would continue to be high 40s going forward. It's just that Q4 is impacted by deleveraging from those revenues that are moving out a quarter or 2. On a run rate basis, for '24, obviously, there's also moving pieces on mix and whatnot. But the normalized gross margins should continue to be kind of in the high 40% type range.

因此全年隱含利潤率範圍相當於 47% 至 49%。因此，根據您在新指南中的位置，我認為第四季約為 45%，因此比第三季更好。但未來運行率將繼續保持在 40 多秒的高水準。只是第四季度受到了那些收入去槓桿化的影響，這些收入正在減少一個季度或兩個季度。在運行率的基礎上，24 年顯然也有混合等方面的變化。但標準化毛利率應該繼續保持在 40% 的高水準範圍。

And my last question, so you compete obviously against PGT in the Southeast and in Florida. And it's not a perfect comparable because they've got different lead times and a different vinyl mix and a different builder versus R&R mix. But this quarter, it was the first time you didn't out comp them in Florida in single family. Could you give some color as to what you're seeing in the Florida market from a market share standpoint and what your single-family orders are looking like right now?

我的最後一個問題是，你們在東南部和佛羅裡達州顯然與 PGT 競爭。這並不是一個完美的可比性，因為他們有不同的交貨時間和不同的乙烯基混合以及不同的構建器與 R&R 混合。但本季度，這是你第一次沒有在佛羅裡達州的單戶家庭中超過他們。您能否從市場份額的角度介紹一下您在佛羅裡達市場所看到的情況以及您目前的單戶訂單情況？

Yes. We are penetrating the market and we have made big gains. Now the gains cannot be 20% or 30% year-per-year now. But what we're seeing is that we have a steady and growing market share at least in the Southeast. Now we're going full speed with the Southwest, where we have made good penetration, and as we go north, where we have nothing, everything is icing on the cake.

是的。我們正在滲透市場並取得了巨大的收益。現在每年的收益不可能是20%或30%。但我們看到的是，至少在東南部，我們擁有穩定且不斷成長的市場份額。現在我們正全速向西南方向前進，在那裡我們已經取得了很好的滲透，而當我們向北前進時，我們什麼也沒有，一切都只是錦上添花。

So Santiago, if you look at your orders all in single family, what's the year-on-year growth rate right now look like?

那麼聖地牙哥，如果你看一下所有單戶訂單，現在的年成長率是多少？

Since earlier in the year, we have said that on a quarterly basis, the residential revenues were going to be somewhat stable throughout the year and you saw that in Q3 as well. So based on what we have today, I would not expect anything too different than what you saw in Q3, Sam. I would say that it's going to be somewhat stable with a pickup more into 2024, once some of the vinyl product is actually already getting invoiced. As you heard earlier, that is already in production probably starting next week with the first orders delivered by year-end. So you don't get to capture necessarily the benefit of that in Q4, but you will start capturing that in Q1, Q2 and so on.

自今年早些時候以來，我們曾說過，按季度計算，全年住宅收入將保持一定程度的穩定，您在第三季度也看到了這一點。因此，根據我們今天所掌握的情況，我預計不會有任何與您在第三季度看到的情況有太大不同的情況，Sam。我想說的是，一旦一些黑膠產品實際上已經開立發票，到 2024 年，它將會有所穩定，並有所回升。正如您之前所聽到的，該產品可能已在下週開始生產，並在年底前交付第一批訂單。因此，您不一定能在第四季度獲得這種好處，但您將在第一季、第二季等中開始獲得這種好處。

Our next question comes from Tim Wojs with Baird.

我們的下一個問題來自貝爾德 (Baird) 的蒂姆沃伊斯 (Tim Wojs)。

Maybe just to make sure I'm totally clear on the EBITDA guide. So I think the midpoint of your prior guide versus the midpoint of this guide is maybe about $24 million lower. So you've got about $14 million from the revaluation that hit the gross margins in Q4, about $8 million to $9 million or so from the project pushouts and then a couple of million dollars from some higher installation mix? Are those kind of the 3 pieces to kind of bridge that gap?

也許只是為了確保我完全清楚 EBITDA 指南。因此，我認為您之前的指南的中點與本指南的中點相比可能要低 2400 萬美元左右。那麼，您從影響第四季度毛利率的重估中獲得了大約1400 萬美元，從項目推出中獲得了大約800 萬至900 萬美元左右，然後從一些更高的安裝組合中獲得了幾百萬美元？這三部分是否可以彌補這一差距？

Are you -- sorry, Tim, are you talking about versus the previous guidance that we gave during Q2?

抱歉，提姆，您所說的是與我們之前在第二季度給出的指導相比嗎？

Yes. So your prior midpoint would have been $328 million. Now it's $304 million. And so I just want to make sure I just completely understand the moving pieces between those items.

是的。所以你之前的中點是 3.28 億美元。現在是 3.04 億美元。所以我只是想確保我完全理解這些項目之間的移動部分。

So not all of it is from Q4, obviously because the Q3 results came below that guidance that we gave after Q2 as well, right? So you have to take out the below previous guidance results that was mainly resulting from that inventory markup that is non-cash, right? So if you take out the effect of that, the actual difference between the new guidance and the previous guidance is about $12 million, $13 million. And as I was just mentioning, when Sam asked the question, if you do the math on operating leverage for Q4, taking $25 million, $30 million of revenues being pushed out, you get to about $9 million of that $12 million, $13 million and then the remaining is more related to mix than anything else because some of that revenue, if you look at the revenue, the revenue is not coming down as much as the EBITDA, right?

所以並非所有數據都來自第四季度，顯然是因為第三季度的結果也低於我們在第二季度之後給出的指導，對吧？因此，您必須剔除以下先前的指導結果，這些結果主要是由非現金庫存加價造成的，對吧？因此，如果剔除此影響，新指引與先前指引之間的實際差異約為 1,200 萬美元、1,300 萬美元。正如我剛才提到的，當Sam 提出這個問題時，如果你對第四季度的營運槓桿進行計算，將2500 萬美元、3000 萬美元的收入推算出來，你會得到1200 萬美元、1300 萬美元和1300 萬美元中的約900 萬美元。那麼剩下的部分與混合比其他任何東西都更相關，因為其中一些收入，如果你看一下收入，你會發現收入的下降幅度沒有EBITDA 那麼多，對嗎？

But that's because of some revenue from mix, some revenue from installation is actually going to hit Q4. So it's essentially about $9 million from operating leverage and $3 million from mix. If you do the math, the midpoint now is 63%. The previous midpoint was about 75% for Q4, right? I mean I think you're looking at it for the full second half of the year which you have to take out the Q3 mix.

但這是因為混合帶來的一些收入，安裝帶來的一些收入實際上將達到第四季。因此，大約 900 萬美元來自營運槓桿，300 萬美元來自混合。如果你算一下，現在的中點是 63%。之前第四季的中點約為 75%，對嗎？我的意思是，我認為您正在考慮整個下半年的情況，您必須排除第三季的組合。

Yes. Yes. Exactly. Okay. Okay. Perfect. And then the revaluation doesn't recur and the pushouts you should realize next year, right? These are both timing-related items is what is kind of what I'm going to add.

是的。是的。確切地。好的。好的。完美的。然後重估就不會再發生，明年你就該意識到退出，對嗎？這些都是與時間相關的項目，這也是我要添加的內容。

Since we always carry a lot of inventory, that has been our tradition. That's why during COVID, we didn't suffer to invoice because we had all supplies in-house for 3, 4 months. Obviously, we bought -- we had inventory at [COP 4,800] and the peso came down to [COP 4,000]. The last 20% revaluation, just then, and we're still eating some of that higher price inventory. But this is all obviously by year-end, we will all be clean out and will be at the current rate, which hasn't moved much in the last 45 days, which is good. We actually believe that it will rebound and go back up. But so far, we will clean it up by year-end, the latest.

由於我們總是持有大量庫存，這一直是我們的傳統。這就是為什麼在新冠疫情期間，我們沒有開立發票，因為我們內部有 3、4 個月的所有供應品。顯然，我們以 [COP 4,800] 的價格購買了庫存，而比索則降至 [COP 4,000]。就在那時，最後一次 20% 的重估，我們仍在吃一些價格較高的庫存。但這一切顯然都是到年底的時候，我們都會被清理乾淨，並且會按照目前的速度，在過去 45 天裡沒有太大變化，這很好。我們實際上相信它會反彈並回升。但到目前為止，我們最遲將在年底前將其清理乾淨。

Just to follow up, Tim, it is a timing issue. Obviously, we wanted to highlight that the inventory effect is completely non-cash because you purchase the inventories in dollars and you sell them in dollars. It's just a function of the functional currency being the Colombian peso, right? So those inventories that were purchased during Q2 are essentially all having been sold already, right? So you shouldn't have any more of that in Q4 and the impact on the operating leverage is a timing issue as well because those are projects that are up and going already. They're not getting cancellations. It's just revenues that are being pushed out into '24. So it's a timing issue, as you said.

提姆，我想跟進一下，這是一個時間問題。顯然，我們想強調庫存效應完全是非現金的，因為您以美元購買庫存並以美元出售。這只是功能貨幣哥倫比亞比索的函數，對嗎？那麼第二季購買的庫存基本上已經全部售出，對吧？因此，第四季不應該再有這樣的情況，對營運槓桿的影響也是一個時間問題，因為這些項目已經啟動並正在進行中。他們沒有收到取消訂單。只是收入被推到了「24」。所以正如你所說，這是一個時間問題。

Okay. Okay. Very good. And then just the last piece on the market. It does sound like you guys are a little bit more constructive on the market this quarter than maybe you were last quarter. Is that just because of some of the financing starting to roll through with banks? And are you actually seeing better bidding? So I'm just -- I guess, just kind of curious how you see the market today than maybe 3 months ago.

好的。好的。非常好。然後是市場上的最後一件作品。聽起來你們本季對市場的看法確實比上季更有建設性。這僅僅是因為一些融資開始透過銀行進行嗎？您真的看到更好的出價了嗎？所以我只是——我想，只是有點好奇你如何看待今天的市場，而不是三個月前。

The prices have been good for us. The problem that we had last quarter was less invoicing because of the $30 million I mentioned postponed to first quarter of next year and second quarter. And then -- but the pricing and then the peso revaluation, but the pricing has been steady. I don't see other small competition lowering the prices simply, the biggest competitor is PGT and their subsidiaries and they haven't done so. So we have a steady pricing and next year, we have lower costs in aluminum. So everything should be par again next year.

價格對我們來說很好。上個季度我們遇到的問題是發票較少，因為我提到的 3000 萬美元推遲到了明年第一季和第二季。然後——但定價和比索重估，但定價一直穩定。我不認為其他小型競爭對手會簡單地降低價格，最大的競爭對手是 PGT 及其子公司，但他們還沒有這樣做。因此，我們的定價穩定，明年鋁的成本更低。所以明年一切都會恢復正常。

Our next question comes from Stanley Elliott with Stifel.

我們的下一個問題來自 Stanley Elliott 和 Stifel。

I apologize if this got asked before I had bouncing around a little bit. Can you help us with the build on top line for the double-digit revenue growth into next year for starters?

如果在我還來不及跳動之前就有人問這個問題，我深感抱歉。首先，您能否幫助我們在明年達到兩位數的營收成長？

Are you talking about the breakdown as to how that's composed spend?

您是在談論支出的構成細項嗎？

Yes. Roughly, just trying to get a sense for kind of what are going to be the main drivers to get to that.

是的。粗略地說，只是想了解實現這一目標的主要驅動因素。

Well, if you do the math on the backlog that we reported, you know that typically, that gets executed over the following 18 months, right? And that's why we wanted to highlight that graph on our latest slide to show that the backlog is really sticky and obviously gets executed, right? So if you do the math and just take about 2/3 of that, you come up with what the commercial side of things should be for 2024, right? And that gives you a lot of visibility.

好吧，如果您對我們報告的積壓工作進行數學計算，您就會知道通常會在接下來的 18 個月內執行，對嗎？這就是為什麼我們想在最新的幻燈片上突出顯示該圖表，以表明積壓工作確實很棘手並且顯然得到了執行，對吧？因此，如果你計算一下，只取其中的 2/3 左右，你就會得出 2024 年商業方面的情況，對吧？這給了你很大的可見性。

And on the other hand, I'll let José kind of reiterate the opportunity on the single-family residential side. But obviously, when you have this new vinyl product, where we have no revenues this year, and you have these showrooms now operational for 12 months, where you also have no revenues in '23 that provides confidence that achieving double-digit growth next year is very doable. I don't know, José, if you want to add to that.

另一方面，我會讓何塞重申單戶住宅的機會。但顯然，當你擁有這種新的乙烯基產品時，我們今年沒有收入，而這些陳列室現已運營12 個月，而你在23 年也沒有收入，這讓我們有信心明年實現兩位數的成長是非常可行的。我不知道，何塞，你是否想補充這一點。

Yes. Well, like I said before, anything that we get next year for vinyl is new. I mean, we have a lot of people lining up and they are very happy with our product with our service, with the relationship. Let me give you an example. Somebody in Orlando, I mean, one of our clients buys $500,000 a month in aluminum. He buys around $1 million a month from vinyl suppliers. So we are ready -- he wants to turn everything to one vendor, and like him, there are many, many, many clients that we actually have today that buy very little for us. Now on the other hand, we have nobody north of Orlando, we're not selling to anybody now. So let's say Jacksonville, Tallahassee, Panama City that's only in Florida. And now with the vinyl we can penetrate New York, New Jersey, Carolina, Texas, all the things. And we see -- I mean, everybody is really excited about our vinyl line because we never had vinyl.

是的。好吧，就像我之前說的，明年我們得到的黑膠唱片都是新的。我的意思是，我們有很多人在排隊，他們對我們的產品、我們的服務以及我們的關係非常滿意。讓我舉一個例子。我的意思是，奧蘭多的某人，我們的一位客戶每月購買 50 萬美元的鋁。他每月從黑膠唱片供應商購買約 100 萬美元。所以我們已經準備好了——他想把所有東西都交給一個供應商，像他一樣，我們今天實際上有很多很多客戶，但他們為我們購買的東西很少。另一方面，現在我們在奧蘭多以北沒有人，我們現在不會賣給任何人。假設傑克遜維爾、塔拉哈西、巴拿馬城僅位於佛羅裡達州。現在有了黑膠唱片，我們可以滲透到紐約、新澤西、卡羅來納、德克薩斯等所有地方。我們看到——我的意思是，每個人都對我們的黑膠唱片系列感到非常興奮，因為我們從來沒有黑膠唱片。

Perfect. And then kind of pivoting back to the inventory piece, understanding is not cash. Did something happen? You from the beginning of August to now to where you had to have the revaluation. I'm just curious, since most of it sounds like most of the cost of goods there were purchased in the second quarter.

完美的。然後回到庫存部分，理解不是現金。發生了什麼事嗎？從八月初到現在，你必須進行重估。我只是很好奇，因為聽起來大部分的商品成本都是在第二季購買。

No, nothing happens then. We ended up having more inventory that flew through the Q3 than originally expected. And again, this is more a function of the functional currency. So I'll give you the exact numbers when we bought the inventory, the peso was at about $4,700 per dollar. And when you cost it out 30, 45 and even 60, 75 days later, the average for the quarter was 4,000. So all of a sudden, you have a non-cash impact of 15%, 20% just by function of running more dollars through the P&L because the dollar weakened during that period. But it was more a function of dimensioning how much inventory was going to impact Q3 and ended up being more than we had expected. But as we said on the call, it's essentially all kind of worked out in Q4 should have very little of that.

不，然後什麼事也不會發生。最終，我們第三季的庫存量超出了最初的預期。再說一次，這更多的是功能貨幣的功能。所以我會告訴你我們購買庫存時的確切數字，比索的價格約為每美元 4,700 美元。 30 天、45 天甚至 60 天、75 天後計算成本時，該季度的平均值為 4,000。因此，突然之間，由於美元在此期間走弱，僅透過在損益表上投入更多美元，就會產生 15%、20% 的非現金影響。但這更多是衡量庫存將影響第三季的函數，最終超出了我們的預期。但正如我們在電話會議上所說，基本上在第四季就已經解決了，應該不會有什麼影響。

And then lastly, nice to see the repurchase activity. What are the plans for completing that and then should we think about potentially the Board upsizing that at some point, given where the share price is today?

最後，很高興看到回購活動。完成該計劃的計劃是什麼？考慮到目前的股價，我們是否應該考慮董事會在某個時候擴大規模？

Yes. We certainly feel that there's an opportunity there, and we still have 60% of that original approval available to us. So to the extent that we continue to see opportunities to execute, we will. As we said, our cash flow generation the way that we're projecting it now that a lot of the CapEx is out of the way should be very strong. and we certainly think that this is a good way to return cash to shareholders, especially at today's prices.

是的。我們當然覺得那裡有機會，而且我們仍然有 60% 的原始批准可用。因此，只要我們繼續看到執行的機會，我們就會這樣做。正如我們所說，我們現在預測的現金流量產生方式應該非常強勁，因為許多資本支出都已消除。我們當然認為這是向股東返還現金的好方法，特別是以今天的價格。

Our next question comes from Julio Romero with Sidoti.

我們的下一個問題來自胡里奧·羅梅羅和西多蒂。

I guess my first question is just for José Manuel. On the order delays, what are your customers saying in terms of maybe why the banks stopped lending and why the financing dried up for a little bit? And are those project delays at least partially driven by customer hesitation, customers reworking projects or changing their project scope at all?

我想我的第一個問題是針對何塞·曼努埃爾的。關於訂單延遲，您的客戶對銀行停止貸款以及融資為何稍微枯竭的原因有什麼看法？這些專案延遲是否至少部分是由於客戶猶豫、客戶重新設計專案或根本改變其專案範圍造成的？

No, Julio. Actually, the main reason for the delays is that they increased the percentage, the banks increase the percentage that they have to have under contract in other to release the money before the 2008 was 20% to 30%. After 2008, it was 50%. And now they're asking for 60% to 75%. So all the projects that are ongoing today are going. That's on the commercial side for condominiums.

不，胡里奧。事實上，延遲的主要原因是他們提高了百分比，銀行增加了他們必須在其他合約下釋放資金的百分比，2008年之前為20％至30％。 2008年以後，這個比例是50%。現在他們要求 60% 到 75%。因此，今天正在進行的所有項目都將繼續進行。這是公寓的商業面。

Now on apartments, which are for rental seems the interest rate went up, they are more careful too. The numbers met the demand and the payment for interest. So all that has been clear to most of the projects. Thank god we haven't had any cancellations. We have postponed -- postponement and everything looks good. Like I said, for next year, both sides are going to be moving.

現在出租的公寓，好像利率上去了，他們也比較小心了。這些數字滿足了需求和利息的支付。因此，對於大多數項目來說，這一切都已經很清楚了。感謝上帝，我們沒有取消任何訂單。我們已經推遲了，一切看起來都很好。正如我所說，明年雙方都會採取行動。

That's good color there. I appreciate it there. And so it sounds like higher lending standards from the banks. I guess just really what I'm trying to get at is are the customers -- are the higher rates and higher hurdle rates, I guess, causing customers to have any sort of hesitation or any sort of second thoughts or reworking or anything of that nature in terms of their projects. You mentioned no cancellations, which is good, but just a little more color on the demand front, if I could.

那裡的顏色很好。我很欣賞那裡。因此，這聽起來像是銀行提出了更高的貸款標準。我想我真正想要了解的是客戶——我想是更高的費率和更高的門檻率，導致客戶有任何形式的猶豫或任何形式的重新考慮或返工或任何類似的事情就他們的項目而言，性質。你提到沒有取消，這很好，但如果可以的話，只是在需求方面多一點色彩。

The demand in South Florida, I refresh, the demand from Tampa and Orlando down in (inaudible) or still high, the cancellations has been -- or the postponing by clients have been on the lower end, and we don't serve that much of that market. But to my surprise, now, when I asked the developers who are they selling to, who is the largest buyer is Mexico and Brazil. So that's good. There's a lot of Mexicans coming here that before travel to Texas and Southern California. And on the other hand, I learn from the track homebuilders, the production homes that they -- half of their sales are 100% cash. A lot of people retiring in Florida will have the cash, and they don't want to take 8% interest rate. So the amount keeps going up. I mean, steady or going up. And also, what is surprising, anything above $3.5 million is what we're selling the most. So that's good. I mean, a lot of windows in those buildings.

我刷新一下，南佛羅裡達州的需求，坦帕和奧蘭多的需求（聽不清楚）或仍然很高，取消的情況已經——或者客戶推遲的情況已經處於較低水平，而且我們的服務不多那個市場的。但令我驚訝的是，現在，當我問開發商賣給誰時，最大的買家是墨西哥和巴西。所以這樣很好。有很多墨西哥人在前往德克薩斯州和南加州之前來到這裡。另一方面，我從賽道房屋建築商和生產房屋那裡了解到，他們一半的銷售額都是 100% 現金。佛羅裡達州很多退休的人都會有現金，他們不想接受 8% 的利率。所以金額不斷增加。我的意思是，穩定或上升。而且，令人驚訝的是，任何超過 350 萬美元的產品都是我們銷售最多的產品。所以這樣很好。我的意思是，那些建築物裡有很多窗戶。

Great. Great. Good color there. And then just last one for me is just on SG&A. Santiago, you mentioned SG&A was low to lower shipping and commission expenses. Is that kind of a one-off thing? And then how do you expect SG&A to trend in the fourth quarter?

偉大的。偉大的。那裡的顏色很好。對我來說，最後一項就是 SG&A。聖地牙哥，您提到 SG&A 較低是為了降低運輸和佣金費用。這是一次性的事嗎？那麼您預計第四季的 SG&A 趨勢如何？

That was part of it. And then we made the comparison to nonrecurring settlement charge in the Q3 of 2022, Julio. So you have to also incorporate that in there, and obviously, with more installation, the flip side of the lower gross margin is that you don't have transportation costs on installation, right? So the expectation would be that SG&A for next quarter is much more in line with Q3. So we'll be able to offset some of the variables that are impacting gross margin by having lower SG&A. But for modeling purpose, it would be similar to Q3 for what Q4 should be.

這是其中的一部分。然後我們與 2022 年第三季的非經常性結算費用進行了比較，Julio。因此，您還必須將其納入其中，顯然，隨著安裝次數的增加，毛利率較低的另一面是您無需安裝運輸成本，對嗎？因此，預計下季的銷售及管理費用將與第三季更加一致。因此，我們將能夠透過降低銷售管理費用來抵消一些影響毛利率的變數。但出於建模目的，Q4 應該與 Q3 類似。

Our next question comes from Jean Ramirez with D.A. Davidson.

我們的下一個問題來自 Jean Ramirez 和 D.A.戴維森。

Thank you for your time. You mentioned that over the 18 months period for backlog, 2/3 is commercial. Can we -- how much of the remaining is vinyl -- and in terms of the cadence of growth, what does the step-up look like in Q4 and throughout 2024?

感謝您的時間。您提到在 18 個月的積壓期間，2/3 是商業性的。我們能否——剩餘的多少是黑膠——就成長節奏而言，第四季和整個 2024 年的成長情況如何？

Just to kind of clarify something. 2/3 of the backlog is related to multifamily and not single family residential nor vinyl. Everything that you see reflected in the backlog is strictly on the commercial side with 2/3 of that being multifamily, right? So that's the way to look at it. So to your second question, no vinyl is included in that backlog. And for that matter, no single-family residential revenues are included in the backlog because that is very quick and is very spot in nature.

只是為了澄清一些事情。 2/3 的積壓與多戶住宅有關，而不是單戶住宅或乙烯基住宅。您在積壓訂單中看到的所有內容都嚴格屬於商業方面，其中 2/3 是多戶住宅，對吧？這就是看待它的方式。所以對於你的第二個問題，積壓的訂單中不包含黑膠唱片。就此而言，單戶住宅收入不包含在積壓中，因為這種收入非常快，而且性質非常固定。

So you get an order and it's out the door in 4, 5 weeks. So a lot of it gets worked intra-quarter. So all of what you see from a backlog perspective is related to the commercial segment. Sorry, and you had a follow-up to that. Can you repeat?

所以你收到訂單後，四、五週內就會出貨。所以很多工作都是在季度內完成的。因此，從待辦事項的角度來看，您看到的所有內容都與商業領域有關。抱歉，您對此有後續行動。你可以重複嗎？

Yes. I was -- first of all, thank you for the clarification. I was just focusing on the single-family residential product and I know you already mentioned that it's not in there, but what sort of expectations in terms of growth do you have for Q4 and into the first half I just kind of want to get a sense of what you're seeing and sort of what are you expecting in the first half of '24?

是的。我是——首先，謝謝你的澄清。我只是關注單戶住宅產品，我知道你已經提到它不在那裡，但是你對第四季度和上半年的增長有什麼樣的期望，我只是想得到一個您對24 年上半年所看到的情況有何感想以及有何期待？

Well, we will want to go into too many details in '24 until we're able to formally complete our budgeting process. So you'll hear much more details after the Q4 call. As far as the Q4 projection for residential, as I was saying earlier, we're expecting that to be kind of flattish sequentially. So for modeling purposes, again, if you look at the previous quarters, they've been kind of stable quarter-over-quarter, and that's what we would be expecting in Q4 as well.

好吧，在我們能夠正式完成預算流程之前，我們希望在 24 年討論太多細節。因此，您將在第四季度電話會議後聽到更多詳細資訊。就住宅第四季的預測而言，正如我之前所說，我們預計該數字將連續持平。因此，出於建模目的，如果您查看前幾季，您會發現季度環比穩定，這也是我們對第四季度的預期。

Again, this vinyl related revenues are not really going to start hitting the P&L until the first quarter, second quarter of next year. So you don't have the benefit of that in 2023. So we're still just projecting that based on current orders to be stable sequentially.

同樣，與黑膠唱片相關的收入要到明年第一季和第二季才會真正開始影響損益表。因此，到 2023 年，您將無法享受這一好處。因此，我們仍然只是根據當前訂單進行預測，以保持穩定。

Got it. And if I could just ask one more. Are you seeing any -- are you continuing to see any pricing pressure in that residential?

知道了。如果我能再問一個問題就好了。您是否看到任何 - 您是否繼續看到該住宅有任何價格壓力？

I'll let José take that.

我會讓何塞拿走。

No, we haven't seen -- like I said before, the pricing has been steady. Only there is a couple of minor vendors that have to reduce their prices by 5%, 10% in order to get any work. Otherwise, they will go completely (inaudible)

不，我們還沒有看到——就像我之前說過的，定價一直很穩定。只有少數小供應商必須將價格降低 5%、10% 才能獲得工作。否則，他們就會徹底消失（聽不清楚）

At this time, I would like to turn the call back over to José Manuel for closing remarks.

此時，我想將電話轉回給何塞·曼努埃爾（José Manuel）進行結束語。

Thanks, everyone, for participating on today's call. We are very, very excited. We cannot tell you enough about the future of the company. Our sales are increasing by the day for next year, and we hope to give you much better results. Thank you.

感謝大家參加今天的電話會議。我們非常非常興奮。關於公司的未來，我們無法告訴您足夠的資訊。明年我們的銷售額將與日俱增，我們希望能為您帶來更好的業績。謝謝。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a great day.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。