Trex Company Inc (TREX) 2020 Q4 法說會逐字稿

Good afternoon and welcome to the Trex Company Fourth Quarter and Full Year 2020 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎來到 Trex 公司第四季度和 2020 年全年收益電話會議。（操作員說明）請注意，正在記錄此事件。

I would now like to turn the conference over to Viktoriia Nakhla. Please go ahead.

我現在想將會議轉交給 Viktoriia Nakhla。請繼續。

Thank you all for joining us today. With us on the call are Bryan Fairbanks, President and Chief Executive Officer; and Dennis Schemm, Senior Vice President and Chief Financial Officer. Joining Bryan and Dennis is Bill Gupp, Senior Vice President, General Counsel and Secretary; as well as other members of Trex management.

感謝大家今天加入我們。與我們通話的有總裁兼首席執行官 Bryan Fairbanks；高級副總裁兼首席財務官 Dennis Schemm。加入 Bryan 和 Dennis 的還有高級副總裁、總法律顧問兼秘書 Bill Gupp；以及 Trex 管理層的其他成員。

The company issued a press release today after market close containing financial results for the fourth quarter and full year 2020. This release is available on the company's website. This conference call is also being webcast and will be available on the Investor Relations page of the company's website for 30 days.

該公司今天在收盤後發布了一份新聞稿，其中包含 2020 年第四季度和全年的財務業績。該新聞稿可在公司網站上獲取。此電話會議也進行網絡直播，並將在公司網站的投資者關係頁面上提供 30 天。

I would now like to turn the call over to Bill Gupp. Bill?

我現在想把電話轉給 Bill Gupp。賬單？

Thank you, Viktoriia. Before we begin, let me remind everyone that statements on this call regarding the company's expected future performance and conditions constitute forward-looking statements within the meaning of federal Securities law. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. For a discussion of such risks and uncertainties, please see our most recent Form 10-K and Form 10-Qs as well as our 1933 and other 1934 Act filings with the SEC.

謝謝你，維多利亞。在我們開始之前，讓我提醒大家，本次電話會議中關於公司預期未來業績和狀況的陳述構成聯邦證券法意義上的前瞻性陳述。這些陳述受某些風險和不確定性的影響，這些風險和不確定性可能導致實際結果與前瞻性陳述中表達的結果存在重大差異。有關此類風險和不確定性的討論，請參閱我們最近的 10-K 表格和 10-Q 表格以及我們向美國證券交易委員會提交的 1933 年和其他 1934 年法案文件。

Additionally, non-GAAP financial measures will be referenced in this call. A reconciliation of these measures to the comparable GAAP financial measures can be found in our earnings press release at trex.com.

此外，本次電話會議將參考非 GAAP 財務指標。這些措施與可比較的 GAAP 財務措施的對賬可以在我們在 trex.com 上發布的收益新聞稿中找到。

The company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

公司明確否認有義務公開更新或修改任何前瞻性陳述，無論是由於新信息、未來事件或其他原因。

With that introduction, I will turn the call over to Bryan Fairbanks.

通過這個介紹，我將把電話轉給布萊恩費爾班克斯。

Thank you, Bill. And good evening. Thank you all for joining us in today's call to review Trex Company fourth quarter full year 2020 results and discuss our business outlook. I want to start by thanking the entire Trex organization and our extended family of retailers, dealers, contractors and distributors who enabled our company to distinguish itself during one of the most difficult periods in recent history. Their dedication and collaboration were essential to our ability to remain operational throughout 2020 and overcome many COVID-related challenges and to report record results, ending the year with exceptional fourth quarter sales growth.

謝謝你，比爾。晚上好。感謝大家參加今天的電話會議，回顧 Trex 公司 2020 年第四季度全年業績並討論我們的業務前景。首先，我要感謝整個 Trex 組織和我們的零售商、經銷商、承包商和分銷商大家庭，是他們讓我們公司在最近歷史上最困難的時期之一脫穎而出。他們的奉獻和協作對於我們能夠在整個 2020 年保持運營、克服許多與 COVID 相關的挑戰並報告創紀錄的業績至關重要，從而在年底以出色的第四季度銷售額增長結束了這一年。

Demand for Trex products continues to benefit from strong secular trends, including growth in the outdoor living category, renewed focus on the home, the shift in population from urban to suburban and smaller metropolitan areas, and consumers' increasing preference for environmentally sustainable products. As the recognized leader in product performance, aesthetics, quality and the use of 95% recycled content, Trex experienced robust demand, achieving broad-based growth across all of our residential product lines.

對 Trex 產品的需求繼續受益於強勁的長期趨勢，包括戶外生活類別的增長、對家庭的重新關注、人口從城市向郊區和較小的大都市地區轉移，以及消費者對環境可持續產品的偏好增加。作為產品性能、美學、質量和 95% 回收成分使用方面公認的領導者，Trex 經歷了強勁的需求，實現了我們所有住宅產品線的廣泛增長。

Nowhere was that demand more apparent than in our usually slower fourth quarter. Sales of Trex Residential Products increased 40% year-on-year. As you'll recall from the past, our fourth quarter growth tends to be lower as it's generally more of an inventory infill part of the season. As our new capacity is completed and inventories get back to standard levels, our seasonality is expected to normalize where we tend to see higher growth in the second and third quarters.

這種需求在我們通常較慢的第四季度表現得最為明顯。Trex 住宅產品的銷售額同比增長 40%。正如您從過去回憶起的那樣，我們第四季度的增長往往較低，因為它通常更多地是本季的庫存填充部分。隨著我們新產能的完成和庫存恢復到標準水平，我們的季節性預計將正常化，我們往往會在第二和第三季度看到更高的增長。

The fourth quarter performance was driven by continued success of our premium Select and Transcend decking and railings and strong sell-through of our enhanced product line that has a specific focus on the more cost-conscious consumer who may otherwise choose wood. As anticipated, we experienced increased costs in the fourth quarter related to our capacity expansion program and COVID-related costs. Despite these costs, we reported significant double-digit growth across all key profitability metrics.

第四季度的業績是由我們的優質 Select 和 Transcend 甲板和欄杆的持續成功以及我們增強產品線的強勁銷售推動的，這些產品線特別關注可能會選擇木材的更具成本意識的消費者。正如預期的那樣，我們在第四季度經歷了與我們的產能擴張計劃和 COVID 相關成本相關的成本增加。儘管有這些成本，我們報告了所有關鍵盈利指標的顯著兩位數增長。

Trex Commercial performed in line with our expectations in the fourth quarter, posting improved revenue as we continued to provide innovative solutions in the commercial railing space.

Trex Commercial 在第四季度的表現符合我們的預期，隨著我們繼續在商業欄杆領域提供創新解決方案，收入有所增加。

Our full year and fourth quarter residential product sales growth are clear indicators we continue to benefit from our long-term strategy to convert consumers from wood decking to our eco-friendly Trex decking. The trend is not only continuing but accelerating. We estimate that composites gained approximately 200 basis points of share from the traditional wood market in 2020. And we are looking ahead to similar, if not faster, conversion rates in future years.

我們全年和第四季度的住宅產品銷售增長是我們繼續受益於我們的長期戰略的明確指標，該戰略將消費者從木質地板轉變為我們的環保 Trex 地板。這種趨勢不僅在繼續，而且在加速。我們估計複合材料在 2020 年從傳統木材市場獲得了大約 200 個基點的份額。我們期待在未來幾年實現相似甚至更快的轉化率。

Trex's tremendous brand equity, leading product lines and unparalleled network of distribution, dealer, retail sales channel and contractors furthers our confidence in our ability to continue to lead the conversion opportunity. Importantly, the conversion from wood is still in the early stages, providing us with a significant runway. With the gains in 2020, it's estimated that composite products have approximately 22% share of the decking market in linear foot volume terms, leaving significant conversion opportunity.

Trex 巨大的品牌資產、領先的產品線和無與倫比的分銷、經銷商、零售銷售渠道和承包商網絡進一步增強了我們對我們繼續引領轉換機會的能力的信心。重要的是，木材的轉換仍處於早期階段，為我們提供了一條重要的跑道。隨著 2020 年的增長，估計複合材料產品在線性英尺體積方面佔據約 22% 的裝飾市場份額，留下了巨大的轉換機會。

To support that demand, our capacity expansion investment program continues on schedule. The timing of this new capacity furthers our industry leadership position, allowing Trex to capture additional growth. Dennis will provide detail on the cadence of the production ramp-up scheduled for our Virginia facility this year.

為了支持這種需求，我們的產能擴張投資計劃如期進行。這種新產能的時機進一步鞏固了我們的行業領導地位，使 Trex 能夠獲得額外的增長。丹尼斯 (Dennis) 將提供有關我們今年弗吉尼亞工廠計劃的增產節奏的詳細信息。

2020 was another record year for Trex and one in which we were able to convert 18% sales growth into an increase of 28% in adjusted EBITDA and 26% in adjusted EPS, showing a continued leverage opportunity in our business model. We see this as especially strong performance, given that we absorbed start-up costs associated with our capacity expansion program as well as COVID-19 management costs. Given the experience we've gained in managing operations during the COVID pandemic, we expect 2021 COVID costs to be less, but will still cause certain production inefficiencies and higher costs as we prioritize the health and safety of our employees. We are guiding to full year incremental EBITDA margin of 35% to 40% on strong double-digit sales growth.

2020 年對 Trex 來說又是創紀錄的一年，我們能夠將 18% 的銷售增長轉化為調整後 EBITDA 增長 28% 和調整後每股收益增長 26%，這表明我們的商業模式中存在持續的槓桿機會。我們認為這是特別強勁的表現，因為我們吸收了與產能擴張計劃相關的啟動成本以及 COVID-19 管理成本。鑑於我們在 COVID 大流行期間管理運營方面獲得的經驗，我們預計 2021 年的 COVID 成本會更低，但由於我們將員工的健康和安全放在首位，因此仍會導致某些生產效率低下和更高的成本。由於強勁的兩位數銷售增長，我們指導全年 EBITDA 利潤率增長 35% 至 40%。

During the October call, we announced that we would be taking a mid-single-digit price increase effective with January orders on certain product lines. As expected at that time, we have seen inflationary pressures, but the actual to date and forward projected impact are within our prior projections. As this year progresses and our capacity increases, we will be reinvigorating our international sales initiatives in key markets where sales of Trex products historically have outpaced our domestic sales growth.

在 10 月份的電話會議上，我們宣布我們將對某些產品線的 1 月份訂單實施中等個位數的價格上漲。正如當時預期的那樣，我們已經看到了通脹壓力，但迄今為止的實際影響和未來預計的影響都在我們之前的預測範圍內。隨著今年的進展和我們產能的增加，我們將在主要市場重振我們的國際銷售計劃，在這些市場上，Trex 產品的銷售額歷來超過我們的國內銷售增長。

Additionally, innovation continues to be a key part of our strategy, and you can expect to see more product development and launches from the Trex team moving forward. Trex Company has long been known as a great place to work. And we recently received recognitions by 2 widely respected publications, Fortune Magazine and Forbes, naming us among the fastest-growing companies worldwide and the best midsized company in the U.S., respectively.

此外，創新仍然是我們戰略的關鍵部分，您可以期待看到 Trex 團隊向前推進更多產品開發和發布。長期以來，Trex Company 一直被認為是理想的工作場所。我們最近獲得了《財富》雜誌和《福布斯》這兩家廣受尊敬的出版物的認可，分別將我們評為全球發展最快的公司和美國最佳中型公司。

Also, we are appreciative of industry recognitions that we receive regularly, which honor our organization for the appeal and quality of Trex products, our ongoing commitment to sustainability, and our reputation within the industry. As proud as I am of our outstanding accomplishments in 2020, I'm equally proud of the work we are doing to deliver consistent and sustainable financial performance for the future.

此外，我們非常感謝我們定期獲得的行業認可，這些認可是對我們組織的 Trex 產品的吸引力和質量、我們對可持續發展的持續承諾以及我們在行業內的聲譽的表彰。我為我們在 2020 年取得的傑出成就感到自豪，我同樣為我們為未來提供一致和可持續的財務業績所做的工作感到自豪。

As an example, our initiative to accelerate conversion from wood decking to sustainable Trex decking will result in more plastic being diverted from landfills and allow us to employ more people, which will in turn benefit the communities in which we operate.

例如，我們加速從木地板向可持續 Trex 地板的轉變的舉措將導致更多塑料從垃圾填埋場轉移，並使我們能夠僱用更多的人，這反過來將使我們經營所在的社區受益。

The company was founded almost 30 years ago on the premise that we can extract value from what was once seen as waste. And today we are not only one of the largest recyclers of polyethylene in North America, but also a proof of concept for building a successful business model based off of recycled and reclaimed materials. Sustainability has been in our DNA since the beginning. And our recognized environmental impact, together with our initiatives around fairness in the workplace and corporate responsibility, are aimed at meeting the highest ESG standards.

該公司成立於將近 30 年前，其前提是我們可以從曾經被視為廢物的東西中提取價值。今天，我們不僅是北美最大的聚乙烯回收商之一，而且還是建立基於回收和再生材料的成功商業模式的概念證明。從一開始，可持續發展就融入了我們的 DNA。我們公認的環境影響，以及我們圍繞工作場所公平和企業責任採取的舉措，旨在滿足最高的 ESG 標準。

Now I will turn the call over to Dennis Schemm, our Chief Financial Officer, for a financial review of our fourth quarter and full year 2020 results, and officially congratulate him on his promotion to Senior Vice President. Dennis?

現在，我將把電話轉給我們的首席財務官 Dennis Schemm，讓他對我們 2020 年第四季度和全年業績進行財務審查，並正式祝賀他晉升為高級副總裁。丹尼斯？

Thank you, Bryan, and good afternoon. I am pleased to review our record fourth quarter and full year financial performance, the progress of our capacity expansion program, and our expectations for 2021. Fourth quarter consolidated net sales increased 39% to $228 million, led by 40% growth in Trex Residential Products. This robust top line growth reflects sustained broad-based demand across all of our product lines in what is usually a seasonably slower quarter.

謝謝你，布萊恩，下午好。我很高興回顧我們創紀錄的第四季度和全年財務業績、產能擴張計劃的進展以及我們對 2021 年的預期。第四季度綜合淨銷售額增長 39% 至 2.28 億美元，其中 Trex 住宅產品增長 40%。這種強勁的收入增長反映了我們所有產品線在通常季節性放緩的季度中持續的廣泛需求。

Trex Commercial Products had a positive showing this quarter, with sales increasing 20% year-on-year to $15 million. Consolidated gross margin in the fourth quarter was 40.5% compared to 43.2% in the year-ago quarter. Trex Residential Products gross margin was 41.3% compared to 44.6% in the year ago quarter, reflecting the hiring, training and initial start-up costs at Trex Residential in advance of our capacity ramp-up at the Virginia facility, along with costs of managing our business to respond to the COVID-19 pandemic that amounted to approximately $2 million this quarter.

Trex Commercial Products 本季度表現良好，銷售額同比增長 20% 至 1500 萬美元。第四季度綜合毛利率為 40.5%，而去年同期為 43.2%。Trex Residential Products 毛利率為 41.3%，而去年同期為 44.6%，這反映了 Trex Residential 在弗吉尼亞工廠產能提升之前的招聘、培訓和初始啟動成本，以及管理成本本季度我們用於應對 COVID-19 大流行的業務總額約為 200 萬美元。

We also saw higher inflation and logistics costs associated with our raw materials, as we noted during our third quarter conference call. Gross margin at Trex Commercial expanded 170 basis points to 28% due to our execution of higher-margin projects this quarter as well as our continued focus on operational improvements.

正如我們在第三季度電話會議中指出的那樣，我們還看到與原材料相關的通貨膨脹和物流成本上升。Trex Commercial 的毛利率增長了 170 個基點，達到 28%，這歸功於我們本季度執行的利潤率較高的項目以及我們對運營改進的持續關注。

SG&A expenses increased $9 million to $34 million, primarily due to the timing of incentive compensation. On a percentage of sales basis, SG&A decreased 20 basis points in the fourth quarter compared to the prior year quarter. Our effective tax rate in the fourth quarter was 25.8%.

SG&A 費用增加 900 萬美元至 3400 萬美元，這主要是由於激勵補償的時間安排。按銷售額百分比計算，第四季度的 SG&A 與去年同期相比下降了 20 個基點。我們第四季度的有效稅率為 25.8%。

Net income was $43 million or $0.37 per diluted share, up 22% and 19% respectively from the $35 million or $0.31 per diluted share reported in the fourth quarter of 2019, adjusted for the 2-for-1 stock split distributed on September 14. EBITDA increased 28% to $64 million, and EBITDA margin was 27.9%.

淨收入為 4300 萬美元或攤薄後每股收益 0.37 美元，分別比 2019 年第四季度報告的 3500 萬美元或攤薄後每股收益 0.31 美元增長 22% 和 19%，並根據 9 月 14 日分配的 1 股拆股進行了調整。EBITDA 增長 28% 至 6400 萬美元，EBITDA 利潤率為 27.9%。

For the full year 2020, consolidated net sales were up 18% to $881 million. Trex Residential net sales increased 19% to $828 million. Net income was $176 million or $1.51 per diluted share, up 21% and 22% respectively from $145 million or $1.24 per diluted share, adjusted for the 2-for-1 stock split in 2020. EBITDA was up 24% to $250 million (sic) [$252 million] while EBITDA margin was 28.6%.

2020 年全年，綜合淨銷售額增長 18% 至 8.81 億美元。Trex Residential 淨銷售額增長 19% 至 8.28 億美元。淨收入為 1.76 億美元或稀釋後每股收益 1.51 美元，分別比 1.45 億美元或稀釋後每股收益 1.24 美元增長 21% 和 22%，並針對 2020 年的 1 股拆股進行了調整。EBITDA 增長 24% 至 2.5 億美元（原文如此）[2.52 億美元]，而 EBITDA 利潤率為 28.6%。

In the third quarter, we recognized a onetime $6.5 million charge to the Trex Residential warranty reserve related to legacy surface flaking issue that affected a portion of the products manufactured at our Nevada plant prior to 2007. Excluding the warranty charge, net income was $180 million or $1.55 per diluted share, up 25% and 26%, respectively. EBITDA increased 28% to $258 million and EBITDA margin was 29.3%.

在第三季度，我們確認了 Trex Residential 保修儲備金的一次性 650 萬美元費用，該費用與遺留表面剝落問題相關，該問題影響了我們內華達工廠在 2007 年之前生產的部分產品。不包括保修費用，淨收入為 1.8 億美元或每股攤薄收益 1.55 美元，分別增長 25% 和 26%。EBITDA 增長 28% 至 2.58 億美元，EBITDA 利潤率為 29.3%。

We generated record cash from operations of $187 million in 2020, allowing us to self-finance our capital expenditures of $173 million. The majority of our CapEx spend was related to our expansion program. As recently announced, production in our new Virginia facility started in January of 2021, and we will continue to add lines throughout the first half of 2021.

2020 年，我們從運營中產生了創紀錄的 1.87 億美元現金，使我們能夠自籌 1.73 億美元的資本支出。我們的大部分資本支出都與我們的擴張計劃有關。正如最近宣布的那樣，我們在弗吉尼亞州的新工廠於 2021 年 1 月開始生產，我們將在 2021 年上半年繼續增加生產線。

In addition to our new Virginia plant, we also added lines to our Nevada plant during 2020. When our capacity expansion is completed by the end of June this year, these investments together will increase production capacity by approximately 70% when compared to 2019 volume levels.

除了我們新的弗吉尼亞工廠外，我們還在 2020 年期間為我們的內華達工廠增加了生產線。當我們的產能擴張在今年 6 月底完成時，與 2019 年的產量水平相比，這些投資將使產能增加約 70%。

Looking ahead, we are pleased to provide guidance for our full year 2021 performance that points to another year of strong double-digit growth for Trex. We expect first quarter consolidated net sales to range from $235 million to $245 million, representing year-on-year growth of 20% at the midpoint. We expect growth to expand in the second quarter as our capacity and capabilities increase and in the third quarter as we backfill channel inventory.

展望未來，我們很高興為我們的 2021 年全年業績提供指導，這表明 Trex 又將實現兩位數的強勁增長。我們預計第一季度綜合淨銷售額在 2.35 億美元至 2.45 億美元之間，中點同比增長 20%。隨著我們的產能和能力的增加，我們預計第二季度增長將擴大，第三季度我們將回填渠道庫存。

For the full year 2021, we anticipate incremental EBITDA margins to be between 35% to 40%, inclusive of start-up related expenses, which will continue as we ramp up production at our Virginia facility, higher inflation, and more normalized SG&A spending, partially offset by cost-saving projects.

對於 2021 年全年，我們預計 EBITDA 利潤率增量將在 35% 至 40% 之間，包括啟動相關費用，隨著我們提高弗吉尼亞工廠的產量、更高的通貨膨脹率以及更正常化的 SG&A 支出，這種情況將繼續下去，部分被節省成本的項目所抵消。

Our tax rate is anticipated at approximately 25%. Depreciation will range from $35 million to $40 million, increasing throughout the year. And we expect full year spending on CapEx to be in the range of $130 million to $150 million.

我們的稅率預計約為 25%。折舊將從 3500 萬美元到 4000 萬美元不等，並且全年都會增加。我們預計全年資本支出將在 1.3 億至 1.5 億美元之間。

Now I will turn the call back to Bryan for his closing remarks.

現在我將把電話轉回給布萊恩，聽取他的結束語。

Thank you, Dennis. We expect to demonstrate strong financial and operational performance in 2021 underpinned by growth in the outdoor living category and demand for our Trex products. We continue to be encouraged by key demand indicators from our contractors, dealers, distributors and the consumers interacting with our websites and those features. With the conversion opportunity ahead, we continue to be confident in our business strategy for growth.

謝謝你，丹尼斯。在戶外生活類別的增長和對我們 Trex 產品的需求的支持下，我們預計將在 2021 年展示強勁的財務和運營業績。我們的承包商、經銷商、分銷商以及與我們的網站和這些功能進行交互的消費者的關鍵需求指標繼續令我們感到鼓舞。面對未來的轉換機會，我們繼續對我們的業務增長戰略充滿信心。

Operator, I'd now like to open the call for questions.

接線員，我現在想打開問題電話。

(Operator Instructions) Our first question comes from Stanley Elliott with Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Stanley Elliott。

Quick question as we're thinking about this year and how it might unfold. You talked about 3Q kind of backfilling some of the channel inventory. Would the expectations at that point still be that the inventory is a little bit light within the channel in terms of product, just given how strong demand is shaping up to be over the course of the year?

我們正在考慮今年的快速問題以及它可能如何展開。你談到了第三季度回填一些渠道庫存。考慮到今年需求的強勁程度，此時的預期是否仍然是產品渠道內的庫存有點少？

That's our expectation presently. I expect that we will be able to build some channel inventories as we move through Q1 and Q2. But normally channel inventories do decline in Q2, and then they start building up through the back half of the year to a much higher level by the end of the year. So I do expect there will be channel fill occurring in the third quarter.

這是我們目前的期望。我希望我們能夠在第一季度和第二季度建立一些渠道庫存。但通常渠道庫存在第二季度確實會下降，然後在今年下半年開始增加，到年底達到更高的水平。所以我確實預計第三季度會出現渠道填充。

The next question is from Ryan Merkel with William Blair.

下一個問題來自 Ryan Merkel 和 William Blair。

So my question was on incremental EBITDA margin guidance of 35% to 40%. Should we think of this level as normal? Or does it include some extra costs that get absorbed as the Virginia facility ramps, such that in 2022 it might be a little bit higher?

所以我的問題是關於 35% 到 40% 的增量 EBITDA 利潤率指導。我們應該認為這個水平是正常的嗎？或者它是否包括一些額外的成本，隨著弗吉尼亞設施的增加而被吸收，這樣到 2022 年它可能會更高一點？

Yes. I think that this would be considered normal for this year, 35% to 40%. Because what we're dealing with in the first half of the year, specifically, are twofold. We have COVID costs that are in play right now that we did not have in Q1, so that will be bringing down margins in the first quarter. Plus we also have start-up costs throughout the first half of this year that will be much heavier as we continue to add people in advance of the lines coming on. So I think those are the 2 major influencers that we're seeing on the incremental guidance of $35 million to $40 million.

是的。我認為這對今年來說是正常的，35% 到 40%。因為我們在今年上半年處理的事情，具體來說，是雙重的。我們現在有 COVID 成本在發揮作用，而我們在第一季度沒有，因此這將降低第一季度的利潤率。此外，我們在今年上半年還有啟動成本，隨著我們在生產線上線之前繼續增加人員，這些成本將更加沉重。所以我認為這些是我們在 3500 萬至 4000 萬美元的增量指導中看到的兩個主要影響因素。

The final one will be SG&A. And SG&A, I'd characterize this as a return to more normal spending. Because SG&A was depressed last year because of COVID, right? We pulled back on our branding expenses. And then in -- later on in the year, we had to pull back on travel, and we pulled back on medical. And so in Q2, those costs will be coming back. And throughout the full year, we're going to be experiencing that headwind as those SG&A costs come back in.

最後一個將是 SG&A。而 SG&A，我將其描述為恢復更正常的支出。因為 SG&A 去年因為 COVID 而蕭條，對吧？我們縮減了品牌費用。然後在 - 在今年晚些時候，我們不得不撤回旅行，我們撤回了醫療。因此在第二季度，這些成本將會回歸。在整個一年中，隨著 SG&A 成本的回歸，我們將經歷逆風。

Yes, without those couple of items, you would see that incrementality being higher than where it is at this point. But I think it's a good rough planning estimate.

是的，如果沒有這兩個項目，您會看到增量高於此時的位置。但我認為這是一個很好的粗略規劃估計。

The next question is from Nishu Sood with UBS.

下一個問題來自瑞銀的 Nishu Sood。

So looking at the sales guide for 1Q, the $235 million to $245 million, if we take out Commercial, it implies around 225 for Residential, call it, that would seem to indicate that capacity will still be an issue in 1Q. So I'm just trying to reconcile that with the opening of Virginia, which would have seemed to have been a pretty big step change in capacity. Is it that the capacity will more come on towards the end of 1Q? Just trying to reconcile those 2.

因此，看看第一季度的銷售指南，即 2.35 億美元至 2.45 億美元，如果我們剔除商業，這意味著住宅約為 225，這似乎表明第一季度產能仍將是一個問題。所以我只是試圖將其與弗吉尼亞州的開放相協調，這似乎是容量方面的一個相當大的進步。是不是一季度末產能會更多？只是想調和這兩個。

Consistent with what we've talked about as this capacity comes online, it will increase as we move through the first half of the year. So we announced in January that the first set of lines will come up. We'll have additional lines coming up later in the first quarter. And that continues to build until that entire building will be up and running by the end of the second quarter. So by definition, there's a lot more capacity available to us as we get out into the second quarter, and then even more available during the third quarter as all of that capacity is installed and ready to go.

與我們在這種能力上線時所說的一致，隨著我們在今年上半年的推進，它將會增加。所以我們在 1 月份宣布將推出第一套線路。我們將在第一季度晚些時候推出更多產品線。並且這種情況會一直持續下去，直到整個建築將在第二季度末啟動並運行。因此，根據定義，當我們進入第二季度時，我們有更多的可用容量，然後在第三季度有更多的可用容量，因為所有這些容量都已安裝並準備就緒。

The next question is from Matthew Bouley with Barclays.

下一個問題來自巴克萊銀行的 Matthew Bouley。

The comment you made, Bryan, that inflation is I think you said it was in line with your initial expectations. Is the second round of price increases realistic if inflation moves a little further? Or does it need to get a fair bit worse from here?

布賴恩，你發表的評論說通貨膨脹是我認為你說的符合你最初的預期。如果通脹進一步上漲，第二輪漲價是否現實？或者它需要從這裡變得更糟嗎？

We always take a look at where we stand in the marketplace, how we're doing against inflation along the way. I don't see a need for that. It's within the projections that we have at this point. Who knows as we go through later on the year where the economy goes along the way? But those are discussions that we would take very seriously before implementing something further during the course of the busy season.

我們總是看看我們在市場上的位置，我們是如何應對通貨膨脹的。我認為沒有必要這樣做。它在我們目前的預測範圍內。誰知道今年晚些時候經濟會一路走好？但在繁忙的季節期間，在進一步實施某些措施之前，我們會非常認真地對待這些討論。

The next question is from Keith Hughes with Truist.

下一個問題來自 Truist 的 Keith Hughes。

Going to the incremental EBITDA margin you discussed in the release, is that going to build throughout the year as capacity comes online? And I guess can you give us any sort of feel, if that is the case, how it would look first half versus second half?

關於您在新聞稿中討論的增量 EBITDA 利潤率，隨著產能上線，這一利潤率會在全年增加嗎？我想你能給我們任何感覺嗎，如果是這樣的話，上半場和下半場會是什麼樣子？

Keith, it's a great point, great question. So that is absolutely our expectation. I think the first quarter will be muted, just because the lines are not all up and running yet and we're dealing with those heavier gross margin pressures of the inflation, the COVID management costs and the start-up costs.

基思，這是一個很好的觀點，很好的問題。所以這絕對是我們的期望。我認為第一季度會比較平靜，因為生產線還沒有全部啟動和運行，我們正在應對通貨膨脹、COVID 管理成本和啟動成本帶來的更大的毛利率壓力。

As we move into Q2, more capacity comes online, we would expect the EBITDA margin to increase as we're getting more and more leverage. Into Q3, we would expect the same. We would see the full power of our capacity in line. And so that should help with margins as well. So that's how I would think about it. I think your question is spot on.

隨著我們進入第二季度，更多的產能上線，我們預計 EBITDA 利潤率會隨著我們獲得越來越多的槓桿而增加。進入第三季度，我們期望相同。我們將看到我們能力的全部力量。因此，這也應該有助於提高利潤率。所以這就是我的想法。我認為你的問題是正確的。

Okay. I just had one other quick one too on the D&A, of course, going up throughout the year as you highlighted. By the time we get to the fourth quarter, will we hit a run rate of what D&A will be going into '22 or that accelerate further with the capital you're spending?

好的。當然，我在 D&A 上也有另一個快速的，正如你強調的那樣，全年都在上升。到第四季度時，我們是否會達到 D&A 將進入 22 年的運行率，或者隨著您花費的資本進一步加速？

So you bring up another great point. So we're going from $17 million of depreciation in 2020 to a guide of between $35 million and $40 million for 2021. And so I would expect that depreciation to increase throughout the year, especially as those lines come online in our Virginia facility. And then we'll have a half year of depreciation relative to the Virginia facility. So that will be an incremental headwind coming back into 2022 as well.

所以你提出了另一個重要的觀點。因此，我們將從 2020 年的 1700 萬美元折舊調整為 2021 年的 3500 萬至 4000 萬美元的指南。因此，我預計全年折舊會增加，尤其是當這些生產線在我們弗吉尼亞州的工廠上線時。然後相對於弗吉尼亞設施，我們將有半年的折舊。因此，這也將成為 2022 年的逆風。

The next question is from Ketan Mamtora with BMO Capital.

下一個問題來自 BMO Capital 的 Ketan Mamtora。

I was just wondering with this huge rally that we've seen in lumber prices, are you seeing any acceleration in share gains from -- I know your value proposition is not based on just lumber prices, but I'm just curious if this unprecedented run is changing any customer conversations.

我只是想知道我們在木材價格中看到的這種巨大反彈，你是否看到股票收益的任何加速 - 我知道你的價值主張不僅僅基於木材價格，但我只是好奇這是否是前所未有的run 正在改變任何客戶對話。

We've seen -- that run occurred midway through last year. Again, we've seen the price of lumber take off at this point, and we see people coming in looking for composite products. So the higher price, it doesn't hurt us, but it's not the primary thing that we're looking at.

我們已經看到 - 這種運行發生在去年年中。同樣，我們看到木材價格在這一點上起飛，我們看到人們前來尋找複合材料產品。所以更高的價格，它不會傷害我們，但這不是我們正在考慮的主要事情。

We've always said that, that conversion opportunity starts at 2x the price of wood. And we're not going to be adjusting up and down because of temporary swings. It may drop down to $0.65. It may go up to $1.05 linear foot for wood. We're going to be, on average, about 2x the price to step into our basics product. And then of course, the move-up product, Enhanced Naturals, is about 3x the price of wood, which is a key part of the strategy of those 2 product lines working hand in hand, bring them in the door, show them the higher-level aesthetics along the way and that improved revenue product.

我們一直說，轉換機會的起始價格是木材價格的 2 倍。而且我們不會因為暫時的波動而上下調整。它可能會跌至 0.65 美元。木材的線性英尺可能高達 1.05 美元。平均而言，我們將以大約 2 倍的價格進入我們的基礎產品。當然，升級產品 Enhanced Naturals 的價格約為木材價格的 3 倍，這是這 2 個產品線攜手合作戰略的關鍵部分，將它們帶到門口，向它們展示更高的價格一路上的美學水平和提高收入的產品。

The next question is from Alex Maroccia with Berenberg.

下一個問題來自 Alex Maroccia 和 Berenberg。

I noticed in the 10-K that you no longer break out the sales materiality per customer, and this mainly applies to Boise, U.S. Lumber, and Lowe's. Can you just give us a sense of where the retail versus pro channel split sits today, and how you expect it to change after capacity fully comes online?

我在 10-K 中註意到，您不再細分每個客戶的銷售重要性，這主要適用於 Boise、U.S. Lumber 和 Lowe's。您能否告訴我們今天零售渠道與專業渠道的分歧在哪裡，以及您預計在容量完全上線後它會如何變化？

Well, our over 10% customers are similar to what they were last year. And this year obviously was a strong year for DIY, especially in the middle of the year, actually middle to early part when DIY was open and many of the pro channel locations were not. As we got to later in the year and the entire channel was reopened again, that percentage split went back to more normalized where we would expect it to be. And that's exactly what we expect for 2022 -- 2021 as well.

好吧，我們超過 10% 的客戶與去年相似。今年顯然是 DIY 的強勢一年，尤其是在年中，實際上是中前期，那時 DIY 是開放的，而許多專業渠道地點還沒有開放。當我們在今年晚些時候到達並且整個頻道再次重新開放時，該百分比分配回到了我們預期的更正常化的位置。這正是我們對 2022 年——2021 年的預期。

The next question is from Phil Ng with Jefferies.

下一個問題來自 Jefferies 的 Phil Ng。

Your CapEx guidance for 2021 is a bit more elevated than we would have expected. Any color on any incremental projects you're embarking on?

您對 2021 年的資本支出指引比我們預期的要高一些。您正在進行的任何增量項目有什麼顏色嗎？

And then on the SG&A side, Dennis, I appreciate you're expecting a more normalized year. Is there any help that we should think about? Is that from a dollar perspective or percentage of sales? Just kind of give us some guide to both, that would be really helpful.

然後在 SG&A 方面，丹尼斯，我很感激你期待一個更加正常化的一年。有什麼需要我們思考的幫助嗎？這是從美元的角度還是從銷售額的百分比來看？只是給我們一些關於兩者的指南，這真的很有幫助。

Sure. So from a capacity or CapEx perspective, we are going to continue to have capacity CapEx running through the first half of this year. In addition to that, we've got a bunch of cost-out projects lined up for the second half of the year. So we're going to be looking at automation-type projects. We'll be looking at support system projects to make our capacity even work that much more effective. So that's some of the spend that you'll be seeing in 2021.

當然。因此，從產能或資本支出的角度來看，我們將在今年上半年繼續保持產能資本支出。除此之外，今年下半年我們還安排了一系列成本支出項目。所以我們將研究自動化類型的項目。我們將關注支持系統項目，以使我們的能力更加有效地發揮作用。這就是您將在 2021 年看到的部分支出。

When you asked about the SG&A question, I think that's a great, great question to talk about. Because when I look at SG&A, I look at it from 2 storylines. One is 2021, and one is the longer term.

當你問及 SG&A 問題時，我認為這是一個非常非常值得討論的問題。因為當我看 SG&A 時，我是從兩個故事情節來看的。一個是 2021 年，一個是更長期的。

And in 2021, I would characterize this as the return to more normalcy after a year impacted and constrained by COVID. We definitely plan on supporting the brand and returning the brand spend to more normal levels. As you recall, during the second quarter, we pulled back on branding significantly at the height of the pandemic. We clearly will be moving forward to support it in 2021.

在 2021 年，我將其描述為在受到 COVID 的影響和限制一年後回歸到更正常的狀態。我們絕對計劃支持品牌並將品牌支出恢復到更正常的水平。您還記得，在第二季度，我們在大流行最嚴重的時候大幅縮減了品牌建設。我們顯然會在 2021 年繼續支持它。

Also, in 2020, we had savings from travel and medical. Already in 2021, we're seeing travel expenses more or less return to normal, and we're seeing medical expenses return to more normalcy as well. So that's the 2021 story.

此外，在 2020 年，我們在旅行和醫療方面有了節省。到 2021 年，我們看到差旅費用或多或少恢復正常，我們也看到醫療費用恢復正常。這就是 2021 年的故事。

For the longer term, the SG&A story is all going to be about operating leverage. While we will continue to support our growth judiciously and in a disciplined manner, as Enhance continues to grow, we'll see leverage on that SG&A line as we don't need to spend on branding for Enhance at the same levels that we do for Transcend and Select. I hope that answers your question.

從長遠來看，SG&A 的故事都將與運營槓桿有關。雖然我們將繼續以明智和有紀律的方式支持我們的增長，但隨著 Enhance 的持續增長，我們將看到對 SG&A 系列的影響，因為我們不需要在 Enhance 的品牌建設上花費與我們所做的相同的水平超越與選擇。我希望這能回答你的問題。

Yes, that's really helpful. And what kind of return are you expecting on some of these cost takeout projects? It sounds really exciting. I know your history from your previous firm, and you guys were really diligent on that. It'd be helpful to get a little color on the return profile.

是的，這真的很有幫助。您對其中一些成本外賣項目期望什麼樣的回報？聽起來真令人興奮。我從你以前的公司知道你的歷史，你們在這方面真的很勤奮。在返回配置文件上添加一些顏色會很有幫助。

We've got significant return expectations from the cost projects. We've been away from those projects as our primary focus from our engineers has been on the capacity. But as we work through those capacity and start lining up the -- those cost-outs, we'll start to see the benefit in the second half of the year and into next year. But I can assure you that there's significant returns, but we don't provide the actual numbers.

我們從成本項目中獲得了可觀的回報預期。我們已經遠離這些項目，因為我們的工程師主要關注的是容量。但是，當我們處理這些容量並開始排隊 - 那些成本支出時，我們將在今年下半年和明年開始看到收益。但我可以向你保證，有可觀的回報，但我們不提供實際數字。

The next question is from Kurt Yinger with D.A. Davidson.

下一個問題來自 D.A. 的 Kurt Yinger。戴維森。

Just a 2-parter on the outlook. First, kind of a clarifying point, when you talk about growth expanding from the first quarter, I assume that's year-over-year growth accelerating. Is that right? And then secondly, could you just maybe talk a little bit about what's embedded within that outlook in terms of underlying growth versus the incremental benefit of backfilling some of that inventory?

只是前景上的一個 2 夥伴。首先，澄清一點，當你談到從第一季度開始的增長時，我認為這是同比增長加速。是對的嗎？其次，您能否就潛在增長與回填部分庫存的增量收益相比，談談該前景中嵌入的內容？

So that would be on a year-over-year basis, the percentage growth that we would be referring to. I guess to a certain extent, you can say sequentially as well too.

因此，這將是同比增長，即我們所指的百分比增長。我想在某種程度上，你也可以按順序說。

As it relates to the infill piece of it, that's a little bit more difficult to answer. As the demand in the marketplace continues to be extremely strong, the customers that are coming directly to trex.com and interacting with dex.com really at unprecedented levels for the month of January and February. So the consumer demand is out there.

因為它涉及它的填充部分，所以回答起來有點困難。由於市場需求持續非常強勁，直接訪問 trex.com 並與 dex.com 互動的客戶在 1 月和 2 月確實達到了前所未有的水平。所以消費者的需求就在那裡。

And the question will be, when does that inventory start filling into a meaningful degree? I won't be able to provide a little bit better insight on that as we move through the year.

問題是，該庫存何時開始填充到有意義的程度？在我們度過這一年的過程中，我將無法對此提供更好的見解。

The next question is from Tim Wojs with Baird.

下一個問題來自 Baird 的 Tim Wojs。

Nice job. I have 2 kind of capacity-related questions. So the first is I think you're 6 or 8 months now up with the new lines in Fernley, and so just any sort of kind of update how those are running relative to expectations.

不錯的工作。我有兩種與容量相關的問題。所以首先是我認為你現在已經有 6 或 8 個月了 Fernley 的新生產線，所以只是任何一種更新這些相對於預期的運行方式。

And then secondly, just on installation capacity, I mean have you -- as you talked to some of your contractors and your distributors, are you hearing deck builders actually add crews? So I'm just trying to understand if there's a kind of a natural limitation to how many decks can be put up this year?

其次，就安裝能力而言，我的意思是你——當你與你的一些承包商和經銷商交談時，你是否聽到甲板建造商實際上增加了工作人員？所以我只是想了解今年可以放置多少套牌是否存在某種自然限制？

Yes. You're right on the Fernley lines have been running since June, July of last year. Those are the first new lines this company brought up since mid-2000 -- 2005/2006 time frame. We are getting our expectations out of those lines at this point.

是的。你說得對，Fernley 線路自去年 6 月、7 月以來一直在運行。這些是該公司自 2000 年年中 -- 2005/2006 時間框架以來推出的第一批新生產線。在這一點上，我們正在從這些方面得到我們的期望。

And probably what excites me the most about those lines is the learnings on what we need to do for those start-ups, so that we could then bring our Virginia lines up much more quickly. And we absolutely saw that as we brought up the first sets of lines, all of those learnings along the way. And I expect that we'll even get more efficient as we bring up the additional lines beyond that.

這些生產線最讓我興奮的可能是我們需要為這些初創企業做些什麼，這樣我們就可以更快地建立我們的弗吉尼亞生產線。當我們提出第一組台詞時，我們絕對看到了這一點，一路上所有這些學習。而且我希望我們在增加額外的線路時甚至會變得更有效率。

And could you repeat your second one again?

你能再重複一遍你的第二個嗎？

Yes. Just on -- as you talk to contractors and maybe dealers, do you get the sense that just decking contractors are adding crews? In terms of just the amount of decking capacity that's out there for installation, if that's going to grow in 2021?

是的。就在 - 當你與承包商和經銷商交談時，你是否感覺到只是裝飾承包商正在增加工作人員？就可供安裝的鋪面容量而言，它是否會在 2021 年增長？

Yes, contractors are feeling good about where the marketplace is and their ability to be able to support crews. Like everybody else, finding good skilled labor is a challenge for contractors. Those that are able to find it and have strong business backlogs are adding, where possible, along the way.

是的，承包商對市場所在以及他們支持工作人員的能力感到滿意。和其他人一樣，找到優秀的熟練勞動力對承包商來說是一個挑戰。那些能夠找到它並有大量業務積壓的人正在盡可能地增加。

The next question is from Alex Rygiel with B. Riley FBR.

下一個問題來自 Alex Rygiel 和 B. Riley FBR。

Have you made any inroads in expanding your presence into the new homebuilder market, and more broadly, the international markets?

您是否已將業務擴展到新的住宅建築商市場，以及更廣泛的國際市場？

Yes. So related to new homes, we do continue to see that as an opportunity. As we bring up that additional capacity, we do have individuals that are focused on working directly with the new homebuilders. So I think there'll be some news on that probably as we move through later into the year.

是的。與新房相關，我們確實繼續將其視為一個機會。當我們提高這種額外的能力時，我們確實有一些人專注於直接與新的房屋建築商合作。所以我認為當我們進入今年晚些時候時，可能會有一些消息。

As it relates to international, I absolutely see that as an ongoing growth opportunity. And again, as that capacity becomes available, we can refocus and be able to provide the material at the levels necessary for the growth that these markets demand.

就國際而言，我絕對認為這是一個持續的增長機會。再一次，隨著這種能力的可用，我們可以重新調整重點，並能夠提供滿足這些市場需求增長所需水平的材料。

Over the past couple of years because of our capacity constraints, we've not allowed those markets to grow where they potentially could have. But we absolutely have the plans in place at this point to focus on that, and that will carry out over a number of years.

在過去的幾年裡，由於我們的能力限制，我們不允許這些市場在他們可能擁有的地方發展。但我們目前絕對有計劃專注於此，並將在數年內實施。

The next question is from Reuben Garner with Benchmark Company.

下一個問題來自 Benchmark Company 的 Reuben Garner。

Congrats on the finish to 2020. Maybe, Dennis, any way to kind of -- or I guess, Bryan, either of you obviously can answer this. Any way to frame the level of start-up and COVID costs that you incurred in 2020 relative to what you're baking into your outlook for 2021? Will they be kind of similar? In other words, are they offsetting each other? Because your costs from last year don't recur, and you have new ones this year that are at similar rate. Or are they higher or lower?

恭喜 2020 年結束。也許，丹尼斯，任何方式 - 或者我想，布萊恩，你們中的任何一個顯然都可以回答這個問題。有什麼方法可以將您在 2020 年發生的啟動和 COVID 成本水平與您對 2021 年前景的預測相比較？他們會有點相似嗎？換句話說，它們是否相互抵消？因為你去年的成本不會重複出現，而今年你有新的成本，而且速度相似。或者它們是更高還是更低？

Yes. So Reuben, great question on the start-up. So we've been experiencing higher start-up costs now since Q3 of 2020 as we prepared to open up the Virginia facility. It was more intense in Q4. And in Q1, very, very strong start-up expenses going now, especially because not only are we adding people in advance of all the lines coming on, but now we're shaking out those lines, right? And so we're moving from good product to excellent performance. And so as you're shaking out those lines, there are some additional costs that are going on there.

是的。所以魯本，關於創業的好問題。因此，自 2020 年第三季度我們準備開設弗吉尼亞工廠以來，我們一直在經歷更高的啟動成本。第四季度更加激烈。在第一季度，現在的啟動費用非常非常高，尤其是因為我們不僅在所有生產線出現之前就增加了人員，而且現在我們正在擺脫這些生產線，對吧？因此，我們正在從優秀的產品轉向卓越的性能。因此，當您擺脫這些界限時，會產生一些額外的成本。

We'll expect those costs to continue through Q2, probably be largely behind us by the middle of Q3. That's when you would expect those start-up costs to abet.

我們預計這些成本將持續到第二季度，可能在第三季度中期基本落後於我們。那時你會期望這些啟動成本會助長。

Relative to COVID management in Q1, definitely, they are headwinds because we did not have COVID management expenses in Q1 of the prior year. And as Bryan said, though, we're getting better at managing COVID now going forward. We have no idea what to expect if we're going to see further spikes or further hiccups here, but we are doing better managing and dealing better with crew management as a result.

相對於第一季度的 COVID 管理，它們肯定是逆風，因為我們在前一年的第一季度沒有 COVID 管理費用。不過，正如布賴恩所說，我們現在在管理 COVID 方面做得越來越好。我們不知道如果我們在這裡看到更多的尖峰或更多的問題會發生什麼，但我們正在做更好的管理，並因此更好地處理船員管理。

The next question is from Trey Grooms with Stephens.

下一個問題來自 Trey Grooms 和 Stephens。

Good job in the quarter.

本季度表現良好。

Hey Trey, thanks.

嘿特雷，謝謝。

So one for me, and you've talked about this in the past, but really trying to get maybe an update here. But as the mix of composite has taken more share from wood, your entry-level products have gotten much better as well over time. Did you guys see any change to that product mix in '20, given that accelerated kind of share shift, and then maybe more entry-level versus higher end or vice versa? And maybe your expectations around mix as you see the composite share continuing to accelerate?

所以給我一個，你過去也談過這個，但真的想在這裡獲得更新。但隨著複合材料的混合從木材中獲得更多份額，隨著時間的推移，您的入門級產品也會變得更好。鑑於這種加速的份額轉移，你們是否看到 20 世紀產品組合有任何變化，然後可能更多的是入門級而不是高端，反之亦然？當您看到綜合份額繼續加速時，也許您對混合的期望是什麼？

I think there's really -- there's 2 parts to that. By introducing Enhance Basics and Naturals, Basics, of course, was all new to the marketplace in 2019. So that was the second year that we had it. It grew. It was all-new market segments. So by definition, that had a larger percentage of growth than some of the other product lines.

我認為真的 - 有兩個部分。通過引入 Enhance Basics 和 Naturals，Basics 當然在 2019 年對市場來說是全新的。那是我們擁有它的第二年。它長大了。這是全新的細分市場。因此，根據定義，這比其他一些產品線的增長百分比更大。

But when we look at how is the overall portfolio doing, it's in line with exactly what we expected when we launched the product: individuals coming in that are interested in wood and being able to get them to trade up to our Enhance Naturals product. And then more of the pro and the customer looking for those higher-end aesthetics, sticking with our Select product or moving up to Transcend along the way.

但是，當我們查看整個產品組合的表現時，它完全符合我們推出該產品時的預期：對木材感興趣並能夠讓他們升級到我們的 Enhance Naturals 產品的個人。然後更多的專業人士和客戶正在尋找那些更高端的美學，堅持使用我們的 Select 產品或一路升級到 Transcend。

So the mix has ended up being exactly where we expected it to be in both of those years. We did a lot of research before moving into the Enhance product line to understand what that consumer behavior would be along the way. So I don't see concerns with it.

因此，這兩年的組合最終完全符合我們的預期。在進入 Enhance 產品線之前，我們進行了大量研究，以了解消費者在此過程中的行為。所以我沒有看到它的擔憂。

Yes, okay. And one if I could, just housekeeping or maybe even a follow-up to one of Dennis' responses earlier. And it's clear that 1Q is going to be more muted in speaking of EBITDA margin, incremental EBITDA margins. But you're looking for 35% to 40% for the full year, inclusive of a lot of these start-up expenses and things like that.

是的，好的。如果可以的話，還有一個，只是內務管理，或者甚至是對丹尼斯早些時候的回應之一的跟進。很明顯，在談到 EBITDA 利潤率、增量 EBITDA 利潤率時，第一季度將更加低調。但是你正在尋找全年的 35% 到 40%，包括很多這些啟動費用和類似的東西。

So is it fair for us to consider maybe 4Q, it should accelerate as we go through the year? But as you get to the 4Q, that you could be at the high end or maybe even above the high end of that range for kind of a run rate as we exit '21?

那麼我們考慮第 4 季度是否公平，它應該隨著我們度過這一年而加速？但是當你進入第四季度時，當我們退出 21 年時，你可能處於該範圍的高端，甚至可能高於該範圍的高端？

So I think you're spot on. I think what you're going to see is a muted incremental EBITDA margins in Q1 because of the cost pressures. As more capacity comes online, you will see EBITDA or incremental EBITDA margins increase in Q2. They'll grow in Q3. And yes, I would think that our EBITDA margins in Q4 would be some of the best.

所以我認為你是正確的。我認為你將看到的是由於成本壓力，第一季度 EBITDA 利潤率的增量減弱。隨著更多產能上線，您將看到第二季度的 EBITDA 或增量 EBITDA 利潤率增加。他們將在第三季度增長。是的，我認為我們在第四季度的 EBITDA 利潤率將是最好的。

The next question is from Yves Bromehead with Exane BNP Paribas.

下一個問題來自 Exane BNP Paribas 的 Yves Bromehead。

If I could have 2. Number one is, could you give us a bit of color on the backlog that you're seeing in the commercial segment? And two, going back to the international expansion opportunities, given the more fragmented supply base in Europe, would the strategy still be to export and gain share before setting up a greenfield? Or could you look at M&A opportunities as a mean to become -- or fast forward your presence in Europe and become a leader there?

如果我能有 2。第一，你能給我們一些關於你在商業領域看到的積壓工作的顏色嗎？第二，回到國際擴張機會，考慮到歐洲的供應基地更加分散，戰略是否仍然是在建立綠地之前出口並獲得份額？或者您能否將併購機會視為成為——或快速推進您在歐洲的存在並成為那裡的領導者的一種手段？

So around the international opportunity, we -- probably we'll continue to export for a considerable time as we move forward. And there may be opportunities that are advantageous and things that we would take a look at. But right now given our cost position, we have the ability to be able to continue exporting, and that works well.

因此，圍繞國際機遇，我們可能會在前進的過程中繼續出口相當長的一段時間。並且可能會有有利的機會和我們會考慮的事情。但現在考慮到我們的成本狀況，我們有能力繼續出口，而且效果很好。

And related to the commercial backlog, commercial has been a side of the business, it's less than 10% of our overall company, and has been more impacted by COVID and the changes in how the commercial industry is operating, whether it be the large arenas that we work with, many of the college stages, things like that. So we have seen some more challenges there with the ABI coming down along the way.

與商業積壓相關，商業一直是業務的一部分，它不到我們整個公司的 10%，並且受到 COVID 和商業行業運作方式變化的影響更大，無論是大型競技場我們與許多大學階段一起工作，諸如此類。因此，隨著 ABI 的下降，我們在那裡看到了更多挑戰。

We do see that we do get back to growth again as that market returns. We're confident in the strategy. But on that side of the business, there probably will be some additional headwinds there from a COVID management perspective.

我們確實看到，隨著市場的回歸，我們確實會再次恢復增長。我們對戰略充滿信心。但在業務的這一方面，從 COVID 管理的角度來看，那裡可能會有一些額外的不利因素。

(Operator Instructions) The next question is a follow-up from Kurt Yinger with D.A. Davidson.

（操作員說明）下一個問題是 Kurt Yinger 與 D.A. 的後續問題。戴維森。

I just wanted to follow up on the last question. Can you just remind us kind of the big areas of the international business at present, how the markets you play in look relative in the U.S. here? And what you think is kind of most important in terms of taking that business to the next stage?

我只想跟進最後一個問題。您能否提醒我們目前國際業務的主要領域，您所涉足的市場與美國相比如何？您認為將業務推向下一階段最重要的是什麼？

We tend to look at the markets that have higher GDP, relatively high family income and interest in outdoor living along the way. So that tends to be your larger economies in Europe and Australia. We ship product to over 40 countries around the world, so it's not limited just to those large economies. Some of the smaller countries that once you add them all up together in Central and South America, end up becoming a very nice business for Trex along the way.

我們傾向於關注 GDP 較高、家庭收入相對較高且對戶外生活感興趣的市場。因此，這往往是歐洲和澳大利亞較大的經濟體。我們向全球 40 多個國家/地區運送產品，因此它不僅限於那些大型經濟體。中美洲和南美洲的一些較小的國家，一旦你把它們加在一起，最終會成為 Trex 的一項非常好的業務。

But because we are small players in most of these countries today, we see the opportunity to be able to significantly increase our penetration in those markets by using some of the same tools that we use in North America, building contractor networks, giving everybody access to high-quality websites where they can learn about the product and where to go get the product, make it easy for them to buy.

但因為我們今天在這些國家中的大多數都是小企業，我們看到了機會，可以通過使用我們在北美使用的一些相同工具，建立承包商網絡，讓每個人都可以訪問，從而顯著提高我們在這些市場的滲透率高質量的網站，他們可以在其中了解產品以及從哪裡獲得產品，讓他們購買起來更容易。

This concludes our question-and-answer session. I would like to turn the conference back over to Bryan Fairbanks for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Bryan Fairbanks 作閉幕詞。

Thank you for everybody's participation today. We look forward to keeping you updated on our progress at upcoming conferences and meetings. Thanks. Good evening.

感謝大家今天的參與。我們期待在即將舉行的大會和會議上讓您了解我們的最新進展。謝謝。晚上好。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。