Toro Co (TTC) 2023 Q4 法說會逐字稿

Good day, ladies and gentlemen. Welcome to The Toro Company's Fourth Quarter and Full Year Fiscal 2023 Earnings Conference Call. My name is Val, and I'll be your conference coordinator for today.

美好的一天，女士們先生們。歡迎參加 Toro 公司 2023 財年第四季和全年財報電話會議。我叫 Val，我將擔任你們今天的會議協調員。

(Operator Instructions)

（操作員說明）

As a reminder today's call is being recorded for replay purposes.

謹此提醒，今天的通話將被錄音以供重播。

I would now like to turn the presentation over to today's host, Julie Kerekes, Treasurer and Senior Manager, Director of Global Tax and Investor Relations. Please proceed, Ms. Kerekes.

現在我想將演講交給今天的主持人、財務主管兼高級經理、全球稅務和投資者關係總監 Julie Kerekes。請繼續，Kerekes 女士。

Thank you and good morning, everyone. Our earnings release was issued this morning, and a copy can be found in the Investor Information section of our corporate website, thetorocompany.com. We have also posted a fourth quarter earnings presentation to supplement our earnings release, along with an updated general investor presentation.

謝謝大家，早安。我們的收益報告已於今天上午發布，您可以在我們公司網站 thetorocompany.com 的投資者資訊部分找到副本。我們還發布了第四季度收益報告，以補充我們的收益發布，以及更新的一般投資者報告。

On our call today are Rick Olson, Chairman and Chief Executive Officer; Angie Drake, Vice President and Chief Financial Officer; and Jeremy Steffan, Director, Investor Relations.

今天參加我們電話會議的有董事長兼執行長 Rick Olson；安吉‧德雷克 (Angie Drake)，副總裁兼財務長；和投資者關係總監 Jeremy Steffan。

We begin with our customary forward-looking statement policy. During this call, we will make forward-looking statements regarding our plans and projections for the future. This includes estimates and assumptions regarding financial and operating results as well as economic, technological, weather, market acceptance, acquisition-related and other factors that may impact our business and customers.

我們從慣例的前瞻性聲明政策開始。在這次電話會議中，我們將就我們未來的計劃和預測做出前瞻性聲明。這包括有關財務和經營業績以及經濟、技術、天氣、市場接受度、收購相關和其他可能影響我們業務和客戶的因素的估計和假設。

You are all aware of the inherent difficulties, risks and uncertainties in making predictive statements. Our earnings release as well as our SEC filings detail some of the important risk factors that may cause our actual results to differ materially from those in our predictions. Please note that we do not have a duty to update our forward-looking statements.

你們都知道做出預測性陳述所固有的困難、風險和不確定性。我們的收益發布以及向 SEC 提交的文件詳細說明了一些可能導致我們的實際結果與我們的預測有重大差異的重要風險因素。請注意，我們沒有義務更新我們的前瞻性陳述。

In addition, during this call, we will reference certain non-GAAP financial measures. Reconciliations of historical non-GAAP financial measures to reported GAAP financial measures can be found in our earnings release and on our website in our investor presentations as well as in our applicable SEC filings. We believe these measures may be useful in performing meaningful comparisons of past and present operating results and cash flows to understand the performance of our ongoing operations and how management views the business. Non-GAAP financial measures should be considered superior to or a substitute for the GAAP financial measures presented in our earnings release and this call.

此外，在本次電話會議中，我們將參考某些非公認會計準則財務指標。歷史非 GAAP 財務指標與報告的 GAAP 財務指標的對帳可在我們的收益報告、我們網站上的投資者簡報以及適用的 SEC 文件中找到。我們相信這些措施可能有助於對過去和現在的經營業績和現金流進行有意義的比較，以了解我們正在進行的經營業績以及管理層如何看待業務。非 GAAP 財務指標應被視為優於或取代我們的收益發布和本次電話會議中提出的 GAAP 財務指標。

With that, I will now turn the call over to Rick.

現在，我將把電話轉給里克。

Thanks, Julie, and good morning, everyone. We delivered full year net sales and adjusted diluted earnings per share growth and while as an exceptionally dynamic operating environment. We saw strong performance across much of our professional segment throughout the year. This includes double-digit top line growth for our underground and specialty construction and golf and grounds businesses, driven by robust demand and actions taken to increase production on output.

謝謝朱莉，大家早安。我們實現了全年淨銷售額和調整後的稀釋每股收益成長，同時營運環境異常活躍。全年我們大部分的專業領域都表現強勁。這包括我們的地下和專業建築以及高爾夫和場地業務的兩位數營收成長，這得益於強勁的需求和為提高產出而採取的行動。

This strength offset the combination of weather and macro factors that led to a sharp reduction in homeowner demand and acceleration of channel destocking for residential and professional segment lawn care products during the second half of the fiscal year.

這一優勢抵消了天氣和宏觀因素的影響，導致本財年下半年房主需求急劇減少以及住宅和專業草坪護理產品管道去庫存加速。

Even with these significant factors, our total company net sales of $4.55 billion and adjusted diluted earnings per share of $4.21 both exceeded last year's record results. This is a testament to the benefits and the strength of our portfolio as well as the dedication of our extremely talented team of employees and valued channel partners.

即使考慮到這些重要因素，我們公司的總淨銷售額為 45.5 億美元，調整後的稀釋每股收益為 4.21 美元，均超過了去年的創紀錄業績。這證明了我們產品組合的優勢和實力，以及我們才華橫溢的員工團隊和重要通路合作夥伴的奉獻精神。

For the fourth quarter, net sales of $983 million were down compared to last year as expected. Adjusted diluted earnings per share of $0.71, although lower than a year ago exceeded the outlook we shared on our third quarter call. This was the result of our swift actions to align with current conditions in our various markets. We increased output for businesses with elevated order backlog, decreased output for lawn care products and drove productivity gains and prudent expense management across the enterprise. In addition, restructuring actions were taken to adjust headcount for these industry dynamics.

第四季淨銷售額為 9.83 億美元，與去年同期相比下降，符合預期。調整後攤薄每股收益為 0.71 美元，儘管低於一年前，但超出了我們在第三季電話會議上分享的預期。這是我們根據各個市場當前狀況迅速採取行動的結果。我們增加了訂單積壓增加的企業產量，減少了草坪護理產品的產量，並推動了整個企業的生產力提高和審慎的費用管理。此外，還採取了重組行動，根據這些行業動態調整員工人數。

I'll now highlight our full year results by segment. For fiscal 2023, on a year-over-year basis, professional segment net sales were up 7%. We capitalized on continued strength in demand across much of the segments, delivering top line growth for all businesses with the exception of contractor-grade lawn care solutions.

我現在將按部門重點介紹我們的全年業績。 2023 財年，專業細分市場淨銷售額年增 7%。我們利用許多細分市場持續強勁的需求，為除承包商級草坪護理解決方案之外的所有業務帶來收入成長。

Importantly, a stabilizing supply chain enabled us to increase manufacturing output for underground and specialty construction and golf and grounds products. As a result, we were able to improve lead times and better serve our customers.

重要的是，穩定的供應鏈使我們能夠增加地下和專業建築以及高爾夫和場地產品的製造產量。因此，我們能夠縮短交貨時間並更好地為客戶服務。

Residential segment net sales were down 20% in fiscal 2023 as we navigated unfavorable weather patterns along with a number of macro factors. These factors included rising interest rates, economic uncertainty and the continued normalization of demand patterns for products sold to homeowners following a period of exceptional demand during the pandemic.

由於我們應對不利的天氣模式以及許多宏觀因素，2023 財年住宅細分市場的淨銷售額下降了 20%。這些因素包括利率上升、經濟不確定性以及在疫情期間經歷一段特殊需求後，向房主銷售的產品的需求模式持續正常化。

To put this in perspective, even with the performance this year, the residential segment has delivered top line growth at an average annual rate of 7% since 2019. This is a result of our trusted brands, innovative products and increasingly robust distribution channel. We believe we are well positioned to further capitalize on these strengths as this market rebounds.

從長遠來看，即使考慮到今年的表現，自 2019 年以來，住宅領域的收入仍以年均 7% 的速度增長。這是我們值得信賴的品牌、創新產品和日益強大的分銷管道的結果。我們相信，隨著市場反彈，我們有能力進一步利用這些優勢。

On that note, we are excited to have our full line of Toro branded products available in Lowe's stores nationwide beginning with the upcoming spring selling season. The Toro company has a long track record of strategically managing the business to deliver consistent positive financial results and sustainable value for all stakeholders. Throughout the year, we advanced our 3 enterprise strategic priorities of accelerating profitable growth, driving productivity and operational excellence and empowering people. I'll highlight examples of each.

在這一點上，我們很高興從即將到來的春季銷售季節開始，我們的全系列 Toro 品牌產品將在全國 Lowe's 商店出售。 Toro 公司在策略性管理業務方面擁有悠久的歷史，為所有利害關係人提供一致的正面財務成果和永續價值。在這一年裡，我們推進了三大企業策略重點：加速獲利成長、提高生產力和卓越營運以及賦予員工權力。我將重點介紹每個範例。

First, we continue to strengthen our innovation leadership, which is the lifeblood of our company and key to driving long-term profitable growth. During the year, we prioritized investments in new products aligned with market growth trends, such as the launch of the AT120, the world's largest all-terrain horizontal directional drill. We continue to bolster our market leadership in the underground construction market with this and other new solutions designed to drive productivity and increase uptime for our customers.

首先，我們持續加強創新領導力，這是我們公司的命脈，也是推動長期獲利成長的關鍵。年內，我們將重點放在符合市場成長趨勢的新產品，例如推出全球最大的全地形水平定向鑽機AT120。我們透過此解決方案和其他旨在提高客戶生產力並增加正常運作時間的新解決方案，繼續鞏固我們在地下建築市場的市場領導地位。

Our strong balance sheet also supported investments in transformational technologies leveraging across our broad portfolio. This includes the development of alternative energy, smart connected and autonomous solutions. These technologies provide customers with sustainable options and increased productivity, all with no compromise on performance. Recent examples include our expanded line of Workman utility vehicles and our new line of Vista people mover vehicles available in both battery and gas options. Both lines are built for versatility and reliability.

我們強大的資產負債表也支持利用我們廣泛的產品組合對轉型技術進行投資。這包括替代能源、智慧互聯和自主解決方案的開發。這些技術為客戶提供了可持續的選擇並提高了生產力，而且不會影響性能。最近的例子包括我們擴大的 Workman 多功能車系列和新的 Vista 旅客捷運車系列，有電池和汽油兩種選擇。兩條生產線均專為多功能性和可靠性而設計。

Second, we drove productivity and operational excellence across the organization as we manage production and align costs with near-term demand in a quickly changing environment. We are carrying this momentum into 2024 with our recent launch of a transformational productivity initiative. We've named this multi-year initiative, AMP, which stands for Amplifying Maximum Productivity.

其次，我們在快速變化的環境中管理生產並根據近期需求調整成本，從而提高了整個組織的生產力和卓越營運。我們最近推出了生產力轉型計劃，將這一勢頭帶入 2024 年。我們將這項多年計畫命名為 AMP，代表「放大最大生產力」。

We are dedicating resources to identify and implement sustainable supply-base, design-to-value and route-to-market transformation. We expect this major initiative to result in more than $100 million of incremental annual cost savings by fiscal 2027. A portion of this, we intend to reinvest in the business to further accelerate innovation and long-term growth.

我們正在投入資源來確定和實施可持續的供應基礎、設計價值和市場路線轉型。我們預計到 2027 財年，這項重大舉措將每年節省超過 1 億美元的增量成本。我們打算將其中一部分用於業務再投資，以進一步加速創新和長期成長。

And third, we focused on ensuring that our employees and channel partners were aligned and empowered to drive the best possible outcomes for all stakeholders. In a year that played out much differently than originally expected, our team remained nimble and supported our customers with their unwavering commitment to do business the right way.

第三，我們致力於確保我們的員工和通路合作夥伴保持一致並獲得授權，為所有利害關係人帶來最佳的結果。在與最初預期大不相同的一年中，我們的團隊保持了敏捷性，並堅定不移地致力於以正確的方式開展業務，為我們的客戶提供支援。

Before I hand the call over to Angie, I'd like to reiterate the high confidence we have in our ability to continue to capitalize on growth opportunities in our attractive end markets. This includes the sustained strong demand we've seen in our underground and specialty construction and golf and grounds businesses and the eventual rebound of homeowner markets.

在將電話轉交給安吉之前，我想重申我們對繼續利用有吸引力的終端市場的成長機會的能力充滿信心。這包括我們在地下和專業建築以及高爾夫和場地業務中看到的持續強勁需求以及房主市場的最終反彈。

With that, Angie will walk through the details of our fourth quarter performance and our fiscal 2024 guidance.

接下來，Angie 將詳細介紹我們第四季的業績和 2024 財年的指導。

Thank you, Rick, and good morning, everyone. Our results in the fourth quarter were aligned with our expectations, and we saw several businesses continue their strong momentum to close out the year. Consolidated net sales for the quarter were $983.2 million, a decrease of 16.1% compared to last year. Reported EPS was $0.67 per diluted share and reflects a $0.04 charge related to a restructuring program we initiated in October. The $0.67 was down from $1.12 in the fourth quarter of last year. Adjusted EPS was $0.71 per diluted share, down from $1.11.

謝謝你，瑞克，大家早安。我們第四季的業績符合我們的預期，我們看到一些企業繼續保持強勁的勢頭，結束了這一年。該季度綜合淨銷售額為 9.832 億美元，較去年下降 16.1%。報告的每股攤薄每股收益為 0.67 美元，反映了與我們 10 月啟動的重組計劃相關的 0.04 美元費用。 0.67 美元低於去年第四季的 1.12 美元。調整後每股攤薄每股收益為 0.71 美元，低於 1.11 美元。

For the full year, net sales of $4.55 billion were up about 1% from $4.51 billion last year. Reported EPS was $3.13 per diluted share. This was inclusive of noncash impairment and restructuring charges and the tax impact of stock-based compensation. This result compares to $4.20 last year. On an adjusted basis, full year EPS was $4.21 per diluted share, up from $4.20.

全年淨銷售額為 45.5 億美元，比去年的 45.1 億美元成長約 1%。報告的每股攤薄每股收益為 3.13 美元。這包括非現金減損和重組費用以及股票補償的稅務影響。這一結果與去年的 4.20 美元相比。調整後，全年每股攤薄每股收益從 4.20 美元上漲至 4.21 美元。

Now to the segment results. Professional segment net sales for the fourth quarter were $828.9 million, down 12.3% year-over-year. This decrease was primarily driven by lower shipments of contractor-grade lawn care equipment and snow products and increased floor planning costs. This was partially offset by higher shipments of underground and specialty construction products and golf and grounds equipment.

現在來看分段結果。第四季專業業務淨銷售額為 8.289 億美元，年減 12.3%。這一下降主要是由於承包商級草坪護理設備和雪產品的出貨量減少以及樓層規劃成本增加所致。這被地下和特殊建築產品以及高爾夫和場地設備的出貨量增加部分抵消。

For the full year, professional segment net sales increased 7.1% to $3.67 billion and comprised 81% of the total company net sales. Professional segment earnings for the fourth quarter were $124.5 million on a reported basis, down from $159 million last year. When expressed as a percentage of net sales, earnings segment were 15% compared to 16.8% last year. The change was primarily due to higher material costs, lower net sales and increased floor planning costs. This was partially offset by productivity improvements and favorable product mix.

全年專業業務淨銷售額成長 7.1%，達到 36.7 億美元，占公司總淨銷售額的 81%。據報告，第四季專業業務收入為 1.245 億美元，低於去年的 1.59 億美元。以佔淨銷售額的百分比表示時，利潤部分為 15%，而去年為 16.8%。這項變更主要是由於材料成本上升、淨銷售額下降以及樓層規劃成本增加。這被生產力提高和有利的產品組合部分抵消。

For the full year, professional segment earnings were $509 million compared to $584 million in fiscal 2022. The fiscal '23 results include gross noncash impairment charges of $151.3 million. As a percentage of net sales, segment earnings were 13.9% compared to 17% last year. Residential segment net sales for the fourth quarter were $148.4 million, down 33.6% compared to last year. The decrease was primarily driven by lower shipments of products broadly across the segment, partially offset by the benefit of net price realization.

全年專業部門營收為 5.09 億美元，而 2022 財年為 5.84 億美元。23 財年的業績包括總非現金減損費用 1.513 億美元。分部獲利佔淨銷售額的百分比為 13.9%，去年為 17%。第四季住宅部門淨銷售額為 1.484 億美元，比去年同期下降 33.6%。這一下降主要是由於整個細分市場的產品出貨量下降所致，但部分被淨價實現的收益所抵消。

For the full year, residential segment net sales were $854.2 million compared to $1.1 billion in fiscal 2022 and comprised 19% of the total company net sales. Residential segment earnings for the quarter were $4.5 million compared to $17.5 million last year. When expressed as a percentage of net sales, earnings for the segment were 3% and compared to 7.8% last year. The year-over-year decrease was primarily driven by higher inventory reserves, unfavorable product mix and lower sales volume. This was partially offset by the benefits of net price realization, productivity improvements and lower material costs.

全年住宅領域淨銷售額為 8.542 億美元，而 2022 財年為 11 億美元，占公司總淨銷售額的 19%。本季住宅部門收益為 450 萬美元，而去年為 1750 萬美元。以佔淨銷售額的百分比表示時，該部門的利潤為 3%，而去年為 7.8%。年比下降的主要原因是庫存儲備增加、產品結構不利以及銷售下降。這部分被淨價實現、生產率提高和材料成本降低的好處所抵銷。

For the full year, Residential segment earnings were $68.9 million compared to $112.7 million in fiscal 2022. As a percentage of net sales, segment earnings were 8.1% compared to 10.5% in fiscal 2022.

全年住宅部門收入為 6,890 萬美元，而 2022 財年為 1.127 億美元。佔淨銷售額的百分比，該部門收入為 8.1%，而 2022 財年為 10.5%。

Turning to our operating results. Our reported and adjusted gross margin were 33.5% and 33.6%, respectively, for the quarter. This compared to 34% and 34.1%, respectively, in the same period last year. The differences were primarily driven by higher material costs and inventory reserves, partially offset by productivity improvements and favorable product mix.

轉向我們的經營業績。本季我們報告的毛利率和調整後的毛利率分別為 33.5% 和 33.6%。相比之下，去年同期分別為 34% 和 34.1%。這些差異主要是由較高的材料成本和庫存儲備造成的，但部分被生產力提高和有利的產品組合所抵消。

For the full year, reported and adjusted gross margin grew to 34.6% and 34.7%, respectively. This was up from 33.3% and 33.4%, respectively, in fiscal 2022. This positive result was primarily driven by net price realization and productivity improvements, partially offset by higher material costs.

全年報告毛利率和調整後毛利率分別成長至 34.6% 和 34.7%。這分別高於 2022 財年的 33.3% 和 33.4%。這一積極成果主要是由淨價格實現和生產力提高推動的，但部分被材料成本上升所抵消。

SG&A expense as a percentage of net sales for the quarter was 23.9% compared to 21.2% in the same period last year. This increase was primarily driven by lower net sales and increased investment in research and engineering. This was partially offset by lower warranty costs. For the full year, SG&A expense as a percentage of net sales was 21.8% compared to 20.5% last year.

本季銷售、管理及行政費用佔淨銷售額的百分比為 23.9%，去年同期為 21.2%。這一增長主要是由於淨銷售額下降以及研究和工程投資增加所致。這被較低的保固成本部分抵消。全年，SG&A 費用佔淨銷售額的百分比為 21.8%，而去年為 20.5%。

Operating earnings as a percentage of net sales for the fourth quarter were 9.6% and on an adjusted basis were 10.1%. These compared to 12.8% and 12.9% in the same period last year on a reported and adjusted basis. For the full year, operating earnings as a percentage of net sales were 9.5% and on an adjusted basis, were 12.9%. These both compared to 12.8% in fiscal 2022.

第四季營業利潤佔淨銷售額的百分比為 9.6%，調整後為 10.1%。相較之下，根據報告和調整後的數據，去年同期為 12.8% 和 12.9%。全年營業利潤佔淨銷售額的百分比為 9.5%，調整後為 12.9%。相較之下，2022 財年這一數字為 12.8%。

Interest expense for the quarter was $14.9 million, up $3.4 million from the same period last year. Interest expense for the full year was $58.7 million, up $23 million. The year-over-year increases were primarily due to higher average interest rates.

該季度利息支出為 1,490 萬美元，比去年同期增加 340 萬美元。全年利息支出為 5,870 萬美元，增加 2,300 萬美元。年比成長主要是由於平均利率上升。

The reported effective tax rate for the fourth quarter was 19.1% compared with 17.9% last year. The increase was primarily due to the geographic mix of earnings and higher tax benefits recorded as excess tax deductions for stock compensation in the prior year period. The adjusted effective tax rate for the fourth quarter was 19.3% compared with 18.5% last year. The year-over-year difference was primarily driven by the geographic mix of earnings. For the full year, the reported and adjusted effective tax rate were 17.7% and 20.4%, respectively. This compares to 19.8% and 20.2% in fiscal 2022.

第四季報告的有效稅率為 19.1%，而去年同期為 17.9%。這一增長主要是由於收入的地理組合和上一年期間股票補償的超額稅收減免記錄的更高的稅收優惠。第四季調整後有效稅率為19.3%，去年同期為18.5%。同比差異主要是由收入的地域組合造成的。全年報告和調整後有效稅率分別為17.7%和20.4%。相較之下，2022 財年這一數字為 19.8% 和 20.2%。

Turning to our balance sheet as of year-end. Accounts receivable were $407 million, up 22% from a year ago primarily driven by payment terms and higher international sales. Inventory was $1.09 billion, up 3% compared to last year. This increase was primarily due to higher finished goods largely driven by decreased demand for products sold to homeowners. This was partially offset by improvement in work in process levels year-over-year, enabled by a stabilizing supply environment. Sequentially, inventory was down $25 million from the end of the third quarter, with improvement in both work in process and finished goods. Accounts payable were $430 million, down 26% compared to a year ago, primarily driven by a reduction in material purchases.

轉向我們截至年底的資產負債表。應收帳款為 4.07 億美元，年增 22%，主要是由於付款條件和國際銷售額增加所致。庫存為10.9億美元，比去年成長3%。這一增長主要是由於製成品增加，這主要是由於向房主銷售的產品需求減少所致。這部分被穩定的供應環境所帶來的流程工作水準逐年改善所抵銷。隨後，隨著在製品和成品的改善，庫存較第三季末減少了 2,500 萬美元。應付帳款為 4.3 億美元，年減 26%，主要是由於材料採購減少所致。

Full year free cash flow was $164.4 million, which reflects a conversion ratio of 50% of reported net earnings as expected. While this was an improvement from fiscal 2022, elevated working capital continued to affect the result. For fiscal 2024, we expect to return to our historical average conversion rate of about 100%.

全年自由現金流為 1.644 億美元，反映了預期報告淨利潤的 50% 的轉換率。雖然這比 2022 財年有所改善，但營運資本增加仍持續影響結果。 2024 財年，我們預計將恢復到 100% 左右的歷史平均轉換率。

Importantly, our balance sheet remains strong. Our gross debt-to-EBITDA leverage ratio is well within our target range of 1x to 2x. This, along with our investment-grade credit ratings, provides the financial flexibility to fund investments that drive long-term sustainable growth. We continue to allocate capital with our disciplined approach and consistent priorities, which include: making strategic investments in our business to drive long-term profitable growth, both organically and through acquisitions; returning cash to shareholders through dividends and share repurchases and maintaining our leverage goals.

重要的是，我們的資產負債表仍然強勁。我們的總債務與 EBITDA 槓桿率完全在 1 倍至 2 倍的目標範圍內。這與我們的投資等級信用評級一起提供了財務靈活性，為推動長期可持續成長的投資提供資金。我們繼續以嚴格的方法和一致的優先事項分配資本，其中包括：對我們的業務進行策略性投資，以有機地和透過收購的方式推動長期獲利成長；透過股利和股票回購向股東返還現金，並維持我們的槓桿目標。

Our commitment to these priorities is demonstrated by our actions this year, including: our deployment of $142 million to fund capital expenditures that support new product investments, advanced manufacturing technologies and capacity for growth, and the return of $202 million to shareholders through regular dividend payments of $142 million and share repurchases of $60 million. We are pleased that our Board recently approved a 6% increase in our regular quarterly dividend for the first quarter of fiscal 2024.

我們今年的行動體現了我們對這些優先事項的承諾，包括：我們部署 1.42 億美元來資助支持新產品投資、先進製造技術和增長能力的資本支出，並透過定期股息支付向股東返還 2.02 億美元1.42億美元，股票回購6000 萬美元。我們很高興董事會最近批准將 2024 財年第一季的定期季度股利增加 6%。

As we look ahead to fiscal 2024, we continue to be encouraged by our market leadership and believe we are well positioned to drive long-term profitable growth in each of our attractive end markets. In the near term, there continues to be a number of factors in play. First, we expect incremental growth from our expanded mass channel. We anticipate this will help offset the headwinds from continued consumer caution and elevated field inventory levels of residential and contractor-grade lawn care products. Of note, there has been some progress in reducing dealer inventories of these products since last quarter's peak.

展望 2024 財年，我們的市場領導地位繼續鼓舞著我們，並相信我們處於有利位置，可以在每個有吸引力的終端市場推動長期獲利成長。短期內，仍有許多因素在發揮作用。首先，我們預期我們擴大的大眾通路將帶來增量成長。我們預計這將有助於抵消消費者持續謹慎以及住宅和承包商級草坪護理產品現場庫存水準升高的不利影響。值得注意的是，自從上個季度達到高峰以來，經銷商在減少這些產品庫存方面取得了一些進展。

Second, we ended fiscal 2023 with a $2 billion order backlog which remains much higher than typical. This continues to be driven by the strong demand we are experiencing for our underground and specialty construction solutions and golf and grounds equipment. With a more stable supply of key components, we are enabling increased flexible production capacity and are leveraging our existing manufacturing footprint to do so. We expect this will further improve lead times and allow us to better serve our customers.

其次，我們在 2023 財年結束時積壓了 20 億美元的訂單，仍然遠高於正常水準。這繼續受到我們對地下和專業建築解決方案以及高爾夫和場地設備的強勁需求的推動。透過更穩定的關鍵零件供應，我們正在提高靈活的生產能力，並利用我們現有的製造足跡來實現這一目標。我們預計這將進一步縮短交貨時間，使我們能夠更好地為客戶服務。

And third, as expected, field inventories of snow products were elevated heading into the new fiscal year, driven by the lower-than-average snowfall totals last year. While the snow season has yet to fully play out, early snowfall activity has been light.

第三，正如預期的那樣，由於去年降雪總量低於平均水平，進入新財年時雪產品的現場庫存有所增加。雖然雪季尚未完全結束，但早期降雪活動較少。

With this backdrop and based on our current visibility, we are providing the following guidance for fiscal 2024. For the full year, we expect low single-digit total company net sales growth with Q2 and Q3 being our larger quarters. For the professional segment, we expect net sales to grow at a rate lower than the total company average. For the residential segment, we expect net sales to grow at a rate higher than the total company average.

在此背景下，根據我們目前的能見度，我們為2024 財年提供以下指導。全年，我們預計公司總淨銷售額將實現低個位數成長，其中第二季和第三季是我們較大的季度。對於專業領域，我們預期淨銷售額的成長速度低於公司整體平均值。對於住宅領域，我們預期淨銷售額的成長速度將高於公司整體平均水準。

Looking at profitability, for the full year, we expect overall adjusted operating earnings as a percentage of net sales to be slightly higher than last year. We expect both the professional and residential segment earnings margins to also be higher than last year. We anticipate a return to more normal incentive compensation. And with that, we expect the other activities category to reflect higher expense compared to fiscal 2023.

就獲利能力而言，我們預計全年整體調整後營業利潤佔淨銷售額的百分比將略高於去年。我們預計專業和住宅領域的利潤率也將高於去年。我們預計會恢復到更正常的激勵薪酬。因此，我們預期其他活動類別的支出將高於 2023 財年。

Turning to adjusted gross margin. We expect a slight year-over-year improvement. We expect this to be driven by productivity initiatives, partially offset by manufacturing inefficiencies as we continue to rebalance residential and contractor-grade lawn care equipment inventory levels. With this backdrop, we anticipate full year adjusted EPS in the range of $4.25 to $4.35 per diluted share. Additionally, for the full year, we expect capital expenditures of about $125 million, depreciation and amortization of about $120 million to $130 million. Interest expense of about $59 million and an adjusted effective tax rate of about 21%.

轉向調整後的毛利率。我們預計將年比略有改善。我們預計這將由生產力計劃推動，隨著我們繼續重新平衡住宅和承包商級草坪護理設備庫存水平，部分由製造效率低下所抵消。在此背景下，我們預計全年調整後每股攤薄每股收益將在 4.25 美元至 4.35 美元之間。此外，我們預計全年資本支出約為 1.25 億美元，折舊和攤提約為 1.2 億至 1.3 億美元。利息支出約為 5,900 萬美元，調整後的有效稅率約為 21%。

Turning to the first quarter of fiscal 2024. We anticipate total company net sales to be down low double digits year-over-year. As a reminder, our net sales grew 23% in the first quarter of fiscal 2023, so a difficult comparison. We expect professional and residential segment net sales for the first quarter to also be down low double digits compared to the same period last year.

談到 2024 財年第一季。我們預計公司總淨銷售額將年減兩位數。提醒一下，我們的淨銷售額在 2023 財年第一季成長了 23%，因此很難進行比較。我們預計第一季專業和住宅領域的淨銷售額也將比去年同期下降兩位數。

Looking at profitability, for the first quarter, we expect total company adjusted operating margin to be lower than the same period last year. We expect the professional segment earnings margin to be slightly lower on a year-over-year basis and the residential segment earnings margin to be meaningfully lower. Overall, we expect our first quarter fiscal 2024 adjusted EPS per diluted share to be modestly lower sequentially from the fourth quarter of fiscal 2023.

從獲利能力來看，我們預期第一季公司調整後營業利潤率總額將低於去年同期。我們預計專業部門的利潤率將比去年同期略有下降，而住宅部門的利潤率將大幅下降。整體而言，我們預計 2024 財年第一季調整後每股攤薄每股收益將比 2023 財年第四季小幅下降。

We are looking forward to fiscal 2024 with confidence and optimism. As executive sponsor for AMP, I am personally excited about the significant benefits and opportunities our team expects to unlock with this initiative. This is made possible with a more stable supply environment and supported by our strong balance sheet. We continue to build our business for long-term profitable growth, and we remain confident in our ability to drive sustained value for all stakeholders.

我們滿懷信心和樂觀地展望 2024 財年。作為 AMP 的執行發起人，我個人對我們的團隊希望透過這項舉措釋放的重大利益和機會感到興奮。這得益於更穩定的供應環境以及我們強大的資產負債表的支持。我們繼續發展我們的業務以實現長期盈利增長，並且我們對為所有利益相關者帶來持續價值的能力充滿信心。

With that, I'll turn the call back to Rick.

說完，我會把電話轉回給瑞克。

Thank you, Angie. Our business fundamentals and market leadership remain strong. Our team has a long and proven track record of managing through a range of seasonal fluctuations and macro situations with agility and resiliency. During this period of exceptional demand for underground and specialty construction and golf and grounds equipment, we expect our agility in flexing production with stabilizing supply to help us continue to improve output and lead times.

謝謝你，安吉。我們的業務基礎和市場領導地位依然強勁。我們的團隊在以敏捷性和彈性應對一系列季節性波動和宏觀形勢方面擁有長期且可靠的記錄。在地下和專業建築以及高爾夫和場地設備需求旺盛的時期，我們希望靈活生產和穩定供應的靈活性能幫助我們繼續提高產量和交貨時間。

Additionally, we expect our resiliency will help us navigate through the current rebalancing of homeowner and channel demand for lawn care solutions and position us well as this market recovers. We are closely watching business and consumer confidence and spending patterns as well as inflation, monetary policy actions in the geopolitical environment.

此外，我們預計我們的彈性將幫助我們應對當前房主的重新平衡，並引導對草坪護理解決方案的需求，並使我們在市場復甦中處於有利地位。我們正在密切關注商業和消費者信心、支出模式以及地緣政治環境中的通膨、貨幣政策行動。

While the rebalancing in homeowner markets has created some near-term headwinds, we believe our well-established market leadership positions us to drive positive long-term results. This leadership is reinforced by our innovative products, trusted brands and extensive distribution and support networks. We also expect continued benefits from the essential nature and regular replacement cycles of our products.

儘管房主市場的再平衡帶來了一些短期阻力，但我們相信，我們穩固的市場領導地位使我們能夠推動積極的長期業績。我們的創新產品、值得信賴的品牌以及廣泛的分銷和支援網絡鞏固了這種領先地位。我們也期望從我們產品的本質和定期更換週期中持續受益。

I'll now comment on factors in our end markets that could affect future results. For underground and specialty construction, we expect end-user demand to remain robust. This is supported by increased private and public spending to address global issues such as aging infrastructure, broadband access and alternative energy build-outs. We are focused on helping our customers address these needs with our trusted channel and the most comprehensive equipment lineup in the industry, including innovative solutions for new installations as well as repair, rehab and replacement.

我現在將評論我們的終端市場中可能影響未來結果的因素。對於地下和專業建築，我們預計最終用戶的需求將保持強勁。這得歸功於私人和公共支出的增加，以解決基礎設施老化、寬頻存取和替代能源建設等全球問題。我們致力於透過我們值得信賴的管道和業內最全面的設備陣容幫助客戶滿足這些需求，包括針對新安裝以及維修、改造和更換的創新解決方案。

For golf, we expect continued strength in demand driven by sustained momentum in new golfers and grounds played. This momentum is not just a U.S. trend. It's global. For example, since 2020, there has been an 18% rise in the number of on-course golfers participating in markets outside North America. And we are uniquely positioned in this space. We're the only company to offer both equipment and irrigation solutions, and we are the global market leader in both. An example of our leadership is our selection as the official turf maintenance and irrigation provider for the Ryder Cup through 2029. This is a tremendous honor.

對於高爾夫而言，我們預計，在新高爾夫球手和球場的持續成長勢頭的推動下，需求將持續強勁。這種勢頭不僅僅是美國的趨勢。這是全球性的。例如，自2020年以來，參與北美以外市場的球場高爾夫球手數量增加了18%。我們在這個領域處於獨特的地位。我們是唯一一家同時提供設備和灌溉解決方案的公司，也是這兩個領域的全球市場領導者。我們的領導力的一個例子是我們被選為 2029 年萊德杯官方草坪維護和灌溉提供者。這是一項巨大的榮譽。

For municipalities and grounds, we expect continued healthy budgets and the prioritization of public green spaces. To capitalize on these trends, we remain focused on developing innovative solutions that drive productivity, including zero exhaust emission alternatives with no compromise on performance. An example is our new Vista line of people mover vehicles with battery and gas-powered options available in multiple configurations. This is a growth opportunity for us in a new product category built on our foundation of more than 3 decades of proven success and reliability in the work utility vehicle space.

對於市政當局和場地，我們期望持續健康的預算並優先考慮公共綠地。為了利用這些趨勢，我們仍然專注於開發可提高生產力的創新解決方案，包括不影響性能的零廢氣排放替代方案。一個例子是我們的新型 Vista 系列旅客捷運車輛，具有多種配置的電池和汽油動力選項。這對我們來說是一個新產品類別的成長機會，該產品類別建立在我們 3 多年在工作多用途車領域所取得的成功和可靠性的基礎上。

For snow and ice management, we continue to expect more subdued contractor demand following last year's below-average snowfall that resulted in elevated field inventories. We're keeping an eye on storm activity as they return to more normal snowfall would be positive. A steady cadence of new product launches continues to enhance our leadership position in this market including our new 8-foot Stainless Steel BOSS V-Blade Plow and our 72-inch Ventrac box plow attachment. Both plows are designed to quickly and effectively clear large amounts of snow.

對於冰雪管理，我們繼續預計，繼去年低於平均水平的降雪量導致現場庫存增加之後，承包商的需求將會更加疲軟。我們正在密切關注風暴活動，因為它們恢復正常降雪將是積極的。新產品推出的穩定節奏繼續增強我們在該市場的領導地位，包括我們的新型 8 英尺不銹鋼 BOSS V 型犁和 72 英寸 Ventrac 箱式犁配件。這兩種犁的設計目的都是為了快速有效地清除大量積雪。

For residential and commercial irrigation and lighting, we expect uneven demand from contractors and continue to watch consumer spending, weather patterns and housing market trends. The drought conditions across many geographies over the last year highlight the importance of water conservation. We are committed to designing solutions that address this need. We were honored to receive our ninth consecutive EPA WaterSense Award in October for our efforts in promoting the efficient use of water through our products, education and outreach.

對於住宅和商業灌溉和照明，我們預期承包商的需求不平衡，並繼續關註消費者支出、天氣模式和房屋市場趨勢。去年許多地區的乾旱狀況凸顯了節約用水的重要性。我們致力於設計滿足此需求的解決方案。我們很榮幸於 10 月連續第九次獲得 EPA WaterSense 獎，以表彰我們透過我們的產品、教育和推廣在促進水的高效利用方面所做的努力。

For agricultural micro irrigation, we expect stable demand from growers and are monitoring key indicators such as specialty crop prices, weather patterns and interest rates. We continue to enhance our market position by expanding our offerings, including our development of end-to-end automated solutions that drive increased productivity and efficiency.

對於農業微灌溉，我們預期種植者的需求將穩定，並正在監測特種作物價格、天氣模式和利率等關鍵指標。我們透過擴大產品範圍繼續增強我們的市場地位，包括開發可提高生產力和效率的端到端自動化解決方案。

For landscape contractors, we expect steady retail demand with some price sensitivity. We expect continued interest in our high productivity, high capacity solutions that allow more work to be done with less labor resources. Equally important to contractors is our best-in-class service and support network.

對於景觀承包商來說，我們預期零售需求穩定，但價格敏感。我們期望人們持續關注我們的高生產力、高容量解決方案，這些解決方案可以用更少的勞動力資源完成更多的工作。對承包商來說同樣重要的是我們一流的服務和支援網路。

For homeowners, we expect continued caution driven by the same macro factors we have discussed. For both landscape contractors and homeowners, we are watching weather patterns a return to more normal average temperatures and precipitation levels would be favorable as with an early spring. Despite the recent dynamics, we believe these remain excellent markets for us given our leadership position, along with the regular replacement cycles and essential nature of these products. We have high confidence in our ability to drive sustained value for all stakeholders over the long term.

對於房主來說，我們預計在我們討論過的相同宏觀因素的推動下，他們將繼續保持謹慎態度。對於景觀承包商和房主來說，我們正在觀察天氣模式，恢復到更正常的平均氣溫和降水量將像早春一樣有利。儘管最近出現了動態，但鑑於我們的領導地位以及這些產品的定期更換週期和本質，我們相信這些市場對我們來說仍然是絕佳的市場。我們對長期為所有利害關係人帶來持續價值的能力充滿信心。

We are taking decisive actions to adjust our production and cost structure in the current demand environment and we are focused on prudent and disciplined capital allocation that delivers excellent returns. This includes our investment in AMP, which we believe will drive near- and long-term productivity and margin benefits. As always, our actions are guided by our enterprise strategic priorities of accelerating profitable growth, driving productivity and operational excellence and empowering people.

我們正在採取果斷行動，在當前的需求環境下調整我們的生產和成本結構，並專注於審慎、嚴格的資本配置，以實現卓越的回報。這包括我們對 AMP 的投資，我們相信這將提高近期和長期的生產力和利潤率收益。一如既往，我們的行動以企業策略優先事項為指導，即加速利潤成長、提高生產力和卓越營運以及賦予員工權力。

On that note, I would like to thank our employees and channel partners for going above and beyond every day to help our customers enhance the beauty, productivity and sustainability of the land. I would also like to extend my gratitude to our customers and shareholders for your continued support. I wish everyone a safe and happy holiday season.

在這一點上，我要感謝我們的員工和通路合作夥伴每天都竭盡全力幫助我們的客戶提高土地的美麗、生產力和永續性。我還要感謝我們的客戶和股東的持續支持。祝大家有個安全、快樂的假期。

With that, we will open up the call for questions.

至此，我們將開始提問。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Sam Darkatsh of Raymond James.

我們的第一個問題來自雷蒙德詹姆斯 (Raymond James) 的薩姆達卡茨 (Sam Darkatsh)。

Three topics, if I could, to explore this morning. First, regarding the resi market, within the first quarter guide, how much, if at all, does the Lowe's load-in help the quarter? Or is that more so an April quarter dynamic? And then related to that, if you exclude the effects of the -- net effects of the Lowe's win -- what do you -- what are you incorporating within your guidance for the residential market for the year?

如果可以的話，今天早上要探討三個主題。首先，關於 Resi 市場，在第一季指南中，Lowe's 的加載對本季有多大幫助（如果有的話）？或者這更像是四月季度的動態？與此相關的是，如果你排除勞氏獲勝的淨效應的影響，你會在今年住宅市場的指導中納入什麼內容？

Okay. Well, I'll answer the first question first. With regard to Lowe's. Most of the Lowe's impact will be in the second quarter. There is the start of the process shipping in the first quarter, but we'll have more significant -- most of the significant effects would be in the second quarter. And it's -- hopefully, it's clear that it will be a net benefit to residential overall.

好的。嗯，我先回答第一個問題。關於勞氏。 Lowe's 的大部分影響將出現在第二季。出貨流程將在第一季開始，但我們將有更重大的影響力——大部分重大影響將在第二季出現。很明顯，這將為住宅整體帶來淨效益。

Right. So then if you back out the net benefit of the Lowe's win, what are you anticipating within your guidance for the base residential market for '24 again?

正確的。那麼，如果您放棄勞氏獲勝的淨收益，您對 24 世紀基本住宅市場的指導有何預期？

Yes, that would be all included within our guidance because of field inventory and so forth, those are the adjustments that are kind of the net on the opposite side. But we do feel that residential will go through the recovery period in 2024. And we've seen some positive signs from a retail standpoint at this point. So it's really a matter excluding Lowe's of what's in the channel between us and them.

是的，由於現場庫存等原因，這些都將包含在我們的指導中，這些調整是對面的淨值。但我們確實認為住宅將在 2024 年經歷復甦期。此時從零售角度來看，我們已經看到了一些積極的跡象。因此，這實際上是一個排除勞氏公司與我們之間管道中的內容的問題。

Higher field inventory, Sam, we'll kind of start the year with that and then continue to align our manufacturing to our demand so that we can rebalance that inventory, but we are certainly poised to grow our share in residential.

更高的現場庫存，山姆，我們將以此開始新的一年，然後繼續根據我們的需求調整我們的製造，以便我們可以重新平衡庫存，但我們肯定準備好增加我們在住宅領域的份額。

Got you. Second topic, the backlog, you mentioned $2 billion. What is that sequentially versus last quarter? And then if you could give some color around the orders growth that you're seeing on a year-on-year basis? And then related to that order cancellation experience of late?

明白你了。第二個主題，積壓，你提到了20億美元。與上季相比，環比是多少？那麼您能否對您所看到的同比訂單成長情況進行一些說明？那麼與最近取消訂單的經驗有關嗎？

Yes. Starting with backlog year-over-year for the -- for our information is down about $300 million year-over-year. And your question sequentially is down from the third quarter -- slightly from the third quarter. So stepping down really in the second half of 2023, actually bumped up slightly in the first and second quarters of 2023 and then a step down. So we have made probably the first significant net bite out of that backlog in the last couple of years. That's something we're working hard on. It mainly reflects the additional output from our plants and the healthier supply chain. So that's the situation with the backlog.

是的。從我們的資訊來看，積壓訂單逐年減少了約 3 億美元。你的問題比第三季依序下降——比第三季略有下降。因此，實際上是在 2023 年下半年下降，實際上在 2023 年第一和第二季度略有上升，然後下降。因此，我們可能在過去幾年中首次從積壓訂單中獲得了顯著的淨收益。這是我們正在努力的事情。主要反映了我們工廠的額外產量和更健康的供應鏈。這就是積壓的情況。

And orders and order cancellations, what trends are you seeing there, Rick?

還有訂單和訂單取消，你看到了什麼趨勢，Rick？

Minimal, very minimal order cancellations and continue to have a very strong order flow at this point. You're seeing the net impact of the backlog, but it's actually, I think we talked about last quarter, the 18 of those orders is actually improving. So we're fulfilling some of the long-term orders they are being replaced by new orders, and that's really the net that you see. But our goal is to reduce the open order situation just because most important for us is our promise to our customers to make sure we serve them in their expected time...

訂單取消量極少、非常少，目前訂單流仍然非常強勁。您可以看到積壓的淨影響，但實際上，我認為我們上季度談到過，其中 18 個訂單實際上正在改善。因此，我們正在履行一些長期訂單，它們正在被新訂單取代，這確實是您看到的網路。但我們的目標是減少未結訂單的情況，因為對我們來說最重要的是我們對客戶的承諾，確保我們在他們的預期時間內為他們提供服務...

Got you. My final topic and then I'll defer to others, apologies. Steel prices have obviously been going batty over the past couple of months or so. As it stands right now, what is your raw material or your input cost stack for fiscal '24? And then related to that, do you anticipate pricing up, down the same accordingly as things stand?

明白你了。我的最後一個主題，然後我會尊重其他人，抱歉。在過去幾個月左右的時間裡，鋼材價格顯然一直在瘋狂上漲。就目前情況而言，您 24 財年的原物料或投入成本是多少？與此相關的是，您預期價格會根據實際情況相應地上漲或下跌嗎？

Yes. So our commodities have been stabilizing, but we are certainly watching the steel prices and have considered that in our guidance. When it comes to price cost, we are -- for F '24, we are returning to kind of our 1% to 2% normal average pricing. We do expect to see some productivity benefits throughout the year, although we are continuing to work on really aligning our production to our demand. And so we're seeing some manufacturing inefficiencies and variances continue.

是的。因此，我們的大宗商品一直在穩定，但我們當然正在關注鋼材價格，並在我們的指導中考慮到這一點。當談到價格成本時，對於 F '24，我們將恢復到 1% 到 2% 的正常平均定價。儘管我們正在繼續努力使我們的生產真正符合我們的需求，但我們確實預計全年會看到一些生產力提升。因此，我們看到一些製造效率低下和差異的現象仍然存在。

Very helpful. Happy holidays to your entire team.

很有幫助。祝您的整個團隊節日快樂。

Happy holidays to you, Sam.

祝你節日快樂，山姆。

One moment, please. Our next question comes from the line of Tim Wojs of Baird.

稍等一會兒。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 start off in the professional business. I guess just to confirm, do you expect that business to grow positively in fiscal '24? And I know it's going to be kind of lower than the total company, but I just want to confirm that there's growth there. And then is there a way within the professional business to maybe give us some color how you're thinking of some of the subcomponents, whether it's kind of underground and golf where you've got the backlog visibility and maybe what's kind of embedded in the guide for landscape there?

也許只是開始從事專業業務。我想只是為了確認一下，您預計該業務在 24 財年會積極成長嗎？我知道它會比整個公司要低，但我只是想確認那裡有成長。然後，在專業業務中是否有一種方法可以讓我們了解您對某些子組件的看法，無論是地下還是高爾夫，您都可以了解積壓的情況，也許還可以了解其中嵌入的內容那裡有風景指南？

Sure. Well, first of all, back to the first part of the question, we do expect the professional business to grow slightly year-over-year. And the second part of your question is the important piece to understand, it's a range within the professional segment of expected outcomes. So on the areas that coincide with where we have high back order at this point. So golf grounds, underground construction, we do expect continued growth, mainly driven by improved output in our plants. And that's something that steadily increased or improved throughout this last year. So we enter into the -- this New Year at a much better place with the supply chain with our plants.

當然。好吧，首先回到問題的第一部分，我們確實預計專業業務將比去年同期略有成長。你問題的第二部分是需要理解的重要部分，它是預期結果的專業部分的範圍。因此，在與我們目前缺貨較多的區域一致的區域。因此，我們確實預期高爾夫球場、地下建築將持續成長，這主要是由我們工廠產量提高所推動的。去年這一數字穩定增加或改善。因此，今年我們的工廠供應鏈將在一個更好的地方進入新的一年。

And if you go to the other end of the spectrum, we do expect continued rebalancing within the channel. On the landscape contractor side, especially the homeowner customers related to landscape contractors. So the more commercial lease portion would be the part that we're talking about there. So that's going to go through the rebalancing, probably acting more similar to residential markets.

如果你走到光譜的另一端，我們確實預期通道內將繼續實現再平衡。在景觀承包商方面，尤其是與景觀承包商相關的房主客戶。因此，更多的商業租賃部分將是我們正在討論的部分。因此，這將經歷重新平衡，可能與住宅市場更加相似。

Okay. Okay. So I mean is there a pretty -- it sounds like there's a pretty meaningful gap between the two, at least what's kind of factored into guidance?

好的。好的。所以我的意思是，聽起來兩者之間是否存在相當大的差距，至少在指導中考慮了什麼因素？

It's a meaningful range of expected growth between the two spectrum that I -- the two ends that I talked about.

這是我談到的兩個範圍之間的一個有意義的預期成長範圍。

Okay. Okay. Good. And then just on AMP, I guess how different is this program than what you'd kind of normally be doing around things like the supply chain and product design and things like that on an annualized basis just to improve productivity. I'm just -- I guess I'm trying to just to make sure I understand. Like is this something that would be purely incremental to what you'd kind of expect from a normal incremental margin perspective? Or is this something that does more to kind of support the normalized incremental margins? And I guess, how do we phase that in?

好的。好的。好的。然後就 AMP 而言，我想這個計劃與您通常圍繞供應鏈和產品設計等事情所做的事情有多麼不同，只是為了提高生產力。我只是——我想我只是想確保我理解。從正常增量利潤的角度來看，這是否純粹是您所期望的增量？或者這是否可以更多地支持標準化的增量利潤？我想，我們如何逐步實施？

Yes. So I think what I'd start with, so it is different than our drive for 5 initiative, which is an employee initiative that will remain intact. AMP is really a transformational productivity initiative and the largest that we've ever done in TTC history. It really -- we have been able to do this because our supply chain has really improved over time and allow us to focus more on productivity. It will be incremental. So our goal is to get $100 million in annual run rate cost savings by 2027, which will be incremental to our normal gross margin and productivity improvements. And we do expect that savings to accelerate over time, probably seeing the majority of the savings come in years 2 and 3.

是的。所以我想我會從什麼開始，所以它與我們的「推動 5」計劃不同，這是一項將保持不變的員工計劃。 AMP 確實是一項生產力轉型計劃，也是我們在 TTC 史上所做過的規模最大的計畫。確實如此——我們之所以能夠做到這一點，是因為我們的供應鏈隨著時間的推移確實得到了改善，並使我們能夠更加關註生產力。這將是增量的。因此，我們的目標是到 2027 年每年節省 1 億美元的營運成本，這將增加我們正常的毛利率和生產力的提高。我們確實預計隨著時間的推移，節省的速度會加快，大部分節省可能會出現在第二年和第三年。

Okay. Okay. That's helpful. And then just the last one. You gave us a little bit of color on the fiscal Q1 kind of expectations. Anything else to think about in terms of the cadence as we think about the rest of fiscal '24, either from a revenue or an EPS perspective?

好的。好的。這很有幫助。然後就是最後一個。您給了我們一些關於第一季財政預期的資訊。當我們考慮 24 財年的剩餘時間時，無論是從收入還是從每股盈餘的角度來看，還有什麼需要考慮的節奏嗎？

Sure. Yes. So as we said in our prepared remarks, typically Q2 and Q3 are our largest quarters. But if we think about kind of the cadence for our adjusted EPS, it is typically higher in the second half than it is in the first half and we expect it to be.

當然。是的。正如我們在準備好的發言中所說，通常第二季和第三季是我們最大的季度。但如果我們考慮一下調整後每股盈餘的節奏，下半年通常會高於上半年，而我們預計會如此。

One moment, please. Our next question comes from the line of Tom Hayes of CL King.

稍等一會兒。我們的下一個問題來自 CL King 的 Tom Hayes。

Rick, maybe just a little bit -- I think you may have mentioned in your prepared remarks, but I just wanted to go back because we've heard some weakness in the channel, maybe just your thoughts on where the rental channel is right now?

里克，也許只是一點點——我想您可能在準備好的發言中提到過，但我只是想回去，因為我們聽到了該渠道的一些弱點，也許只是您對租賃渠道目前狀況的看法？

From our perspective, the rental channel continues to be very healthy. It's been -- it was a strong driver for us in 2023 and order positions continue to be very strong. Obviously, there are adjustments taking place by category and by an individual customer, but we still see that as a healthy business for us.

從我們的角度來看，租賃管道仍然非常健康。它一直是我們 2023 年的強勁推動力，訂單部位繼續保持強勁。顯然，每個類別和單一客戶都在進行調整，但我們仍然認為這對我們來說是一項健康的業務。

Okay. And then maybe just, I know it's come up in a few other questions, but maybe just on the field level inventories on the residential and your professional lawn care. Do you think we're closer to the end of the destocking than kind of the midpoint or just kind of some additional color on kind of where you feel we are as far as the field inventory levels right now?

好的。然後也許只是，我知道它出現在其他一些問題中，但也許只是在住宅和專業草坪護理的現場清單上。您認為我們是否更接近去庫存的結束，而不是中點，或者只是在您認為我們目前的現場庫存水平上添加一些額外的顏色？

Field inventories are still meaningfully elevated from where we would like to see them at this time of year, especially given for spring products, it's really the off season at this point. So that -- we're not going to see major retail flow through until we get into the spring in North America, where we'll start to see the momentum. So still higher. Snow is higher. We had a relatively poor snow season last year. Not off to a great start so far this year, but that's all built into our guidance as we provided it.

與我們在每年這個時候看到的情況相比，現場庫存仍然大幅增加，特別是對於春季產品而言，此時確實是淡季。因此，在北美進入春季之前，我們不會看到主要的零售流量，在那裡我們將開始看到這種勢頭。所以還是更高。雪更高。去年我們的雪季相對較差。今年到目前為止，開局並不好，但這一切都已納入我們提供的指導中。

Okay. Maybe just last year -- sorry, go ahead.

好的。也許就在去年——抱歉，繼續吧。

Tom, just one last thing regarding on the Pro side of things. field inventory is still very low, historically low for underground, specialty construction and the golf and grounds businesses. So -- that's still a channel that needs to be refilled once the balance is found with demand and supply.

湯姆，關於專業方面的最後一件事。場地庫存仍然很低，對於地下、專業建築以及高爾夫和場地業務來說處於歷史低點。因此，一旦需求和供應達到平衡，這仍然是一個需要重新填充的管道。

Okay. I guess, similar along the lines of that last point, I think last time you and I talked, you indicated that you felt the municipal budgets remain pretty solid and that would be a good indicator for your ground and golf-related revenue opportunities. Is that still the case? It sounds like it is.

好的。我想，與最後一點類似，我想上次你和我談話時，你表示你認為市政預算仍然相當穩定，這將是你的場地和高爾夫相關收入機會的一個很好的指標。現在還是這樣嗎？聽起來確實如此。

That's still the case. I'm just looking at some golf information just this morning and the strongest growth in participation has actually been in municipal access golf courses. So open access of golf courses with that strong from a golfing standpoint. Budgets continue to be strong and really prioritized to green spaces for municipalities. And I guess the last piece would be the investments that we've made to have zero emission products has really positioned us well with municipalities that tend to be the early adopters in making those investments. So it puts us in a really good position from a municipal standpoint.

情況依然如此。我今天早上剛剛查看了一些高爾夫信息，參與度增長最強勁的實際上是市政高爾夫球場。從高爾夫的角度來看，高爾夫球場的開放性很強。預算繼續強勁，並且真正優先考慮市政當局的綠色空間。我想最後一點是我們為零排放產品所做的投資，這確實使我們與市政當局建立了良好的關係，這些市政當局往往是這些投資的早期採用者。因此，從市政的角度來看，這使我們處於非常有利的位置。

Our next question comes from the line of David MacGregor of Longbow Research.

我們的下一個問題來自長弓研究中心的大衛‧麥格雷戈。

I mean, arguably, the most important event for 2024 for you is the addition of the Lowe's business, which is just a tremendous addition to the enterprise. But if I could just maybe come back to Sam's question and ask it maybe a little bit differently. Within the low single-digit 2024 revenue growth guidance, what's the expected incremental contribution from the Lowe's business net of likely reductions to your other big box retail partners? And will this incremental business be accretive or dilutive to margins?

我的意思是，可以說，2024 年對您來說最重要的事件是 Lowe's 業務的增加，這對企業來說是一個巨大的補充。但如果我能回到薩姆的問題並以不同的方式提出問題的話。在 2024 年低個位數的收入成長指引範圍內，勞氏業務對其他大型零售合作夥伴的預期增量貢獻（扣除可能減少的成本）是多少？這種增量業務會增加還是稀釋利潤？

Net, we don't break down to the specifics of the mix. We also just -- if you think about the major ports and it goes through our dealer network as well. So there are other elements that were not even kind of bringing into the equation here that are really key. Our dealer business has been very healthy. It's continued to grow for some time. And -- but the net with Lowe's will be a benefit overall for the residential business. Our desire is to continue to grow with all of our partners. So we will continue to work on that with every -- all of our mass and dealer partners look for differentiated product mixes for them. And work to continue to grow that. But the net effect with Lowe's would be a positive for residential.

Net，我們不會分解混合的細節。我們也只是——如果你考慮主要​​港口，它也會通過我們的經銷商網路。因此，還有其他一些真正關鍵的元素甚至沒有被納入考慮範圍。我們的經銷商業務一直都非常健康。它持續增長了一段時間。而且，與 Lowe's 的網路將為住宅業務帶來整體效益。我們的願望是與所有合作夥伴一起繼續成長。因此，我們將繼續與我們所有的大眾和經銷商合作夥伴一起努力，為他們尋找差異化的產品組合。並努力繼續發展這一點。但勞氏公司的淨效應將對住宅產生正面影響。

And Rick, can you speak to whether the incremental business is accretive or dilutive to margins? And I've got a follow-up.

瑞克（Rick），您能談談增量業務是會增加利潤還是會稀釋利潤？我還有後續行動。

It should be consistent. It's not a big swing in either direction.

它應該是一致的。這兩個方向都沒有太大的波動。

Yes. And our best estimates for that, David, are included in guidance.

是的。大衛，我們對此的最佳估計已包含在指導中。

Okay. Because on the surface, it looks like if you exclude the Lowe's business, your EPS forecast is down in 2024 versus 2023. I just want to make sure I'm reading that profile.

好的。因為從表面上看，如果排除 Lowe's 業務，您的 2024 年每股收益預測將低於 2023 年。我只是想確保我正在閱讀該簡介。

Yes. We are -- I mean we're still working to get through some of our manufacturing variances and rebalancing that inventory. So I think if you look at our overall EPS, we've got this homeowner demand that we're continuing to work through. And offsetting that, of course, with what we're seeing in our professional business and the backlog businesses that are doing well and it's proving out within volume.

是的。我的意思是，我們仍在努力解決一些製造差異並重新平衡庫存。因此，我認為如果你看看我們的整體每股收益，你會發現我們正在繼續解決房主的需求。當然，我們在專業業務和積壓業務中看到的表現良好並且在數量上得到了證明，從而抵消了這一點。

Okay. And then my follow-up question is on free cash flow conversion. And I'm just wondering if you could walk us through the drivers behind the recovery of 100% free cash flow from 50% this year. It looks if you back into the math, it looks like you're anticipating inventories down approximately $300 million working capital down, maybe $275 million, somewhere in that order of magnitude. I was just wondering if you could help us -- is it all just working capital reduction? Or are there other things going on in there? Any help there would be appreciated.

好的。然後我的後續問題是關於自由現金流轉換。我只是想知道您是否可以向我們介紹今年自由現金流從 50% 恢復到 100% 背後的驅動因素。如果你回頭計算一下，你預計庫存會減少大約 3 億美元的營運資金，也許是 2.75 億美元，大約在這個數量級上。我只是想知道你是否可以幫助我們——這只是減少營運資金嗎？還是裡面還有其他事情發生？任何幫助將不勝感激。

Sure. Yes, the majority of that opportunity is going to be working capital reduction. So as you know, we've had a focused effort on working capital really the last year, and we will continue to have a sharp focus on that. We want to convert that to 100%. And typically, we generate the majority of that free cash flow in the second half.

當然。是的，大部分機會將是減少營運資本。如您所知，去年我們一直在重點關注營運資本，我們將繼續密切關注這一點。我們希望將其轉換為 100%。通常，我們在下半年產生大部分自由現金流。

Right. And that $300 million of that number, I just offered you, that's at a close approximation of how you're thinking about it?

正確的。我剛剛向您提供的這個數字中的 3 億美元，與您的想法非常接近嗎？

I don't know that we've said exactly what that would be, but inventory is the sharp focus. And if you look at our inventory, we did see WIP decline both year-over-year and sequentially from Q3. So we are making some improvements.

我不知道我們具體說了什麼，但庫存是焦點。如果你看一下我們的庫存，我們確實看到在製品數量同比和第三季度連續下降。所以我們正在做一些改進。

Our next question comes from the line of Eric Bosshard of Cleveland Research.

我們的下一個問題來自克利夫蘭研究中心的 Eric Bosshard。

A couple of things, if I could. First of all, you've had historically these 3-year programs that are generally focused on revenue growth, and I think you still got that one going on. What I'm curious about is the AMP program is notably different. And I think there was a comment made that the supply chain enables this at this point in time. I guess taking a half step back, I'm just curious like why the need for this, there hasn't been one like this historically. Is there something different with the business, with the market, with competition? I'm just curious what's different that created a need for this relative to the history of the business.

如果可以的話，有幾件事。首先，從歷史上看，這些為期三年的計劃通常側重於收入成長，而且我認為您仍然在進行該計劃。我很好奇的是 AMP 程式明顯不同。我認為有人評論說供應鏈在此時能夠實現這一點。我想退一步，我只是好奇為什麼需要這樣做，歷史上還沒有這樣的。企業、市場、競爭有什麼不同嗎？我只是好奇相對於業務歷史而言，有什麼不同之處創造了這種需求。

Yes, Eric, I'll take this one. So if you think relative to our employee initiatives, this is different. This is really laser focused on productivity and cost improvement. And if there is something that's unique and why now is the right time, we're coming out of a period out of the pandemic where it's been difficult to do some of that work, particularly with our supply base. Efficiency within our manufacturing plants, and we are now back at a point where we can go back to our focus on improving productivity within the plants, working with our supply base to improve pricing.

是的，艾瑞克，我要這個。因此，如果您認為相對於我們的員工舉措，這是不同的。這確實是專注於生產力和成本改進。如果有什麼是獨一無二的，為什麼現在是正確的時間，那就是我們正在走出疫情的時期，在這個時期，很難做一些工作，特別是在我們的供應基地方面。我們製造工廠的效率，現在我們可以重新專注於提高工廠的生產力，並與我們的供應基地合作提高定價。

The whole go-to-market portion that Angie mentioned in her prepared remarks of taking cost out of that and the scale to be able to leverage some of our costs. So now is the perfect time. It's something that cuts across everything else we do, and it helps us enable the other things that we're doing.

安吉在她準備的演講中提到的整個進入市場部分，即從中剔除成本以及能夠利用我們的部分成本的規模。所以現在是最佳時機。它貫穿我們所做的所有其他事情，並幫助我們實現我們正在做的其他事情。

Is there anything from a market standpoint that is different in terms of price points, product, end market that is different that relates to this? Or is this -- as you characterize it kind of catch up for things that you weren't able to do during pandemic and supply chain. I'm just curious if the end market is changing in a way that also amplifies the need for those.

從市場的角度來看，在價格點、產品、最終市場方面是否有任何差異與此相關？或者正如你所描述的那樣，它是在追趕你在大流行和供應鏈期間無法做到的事情。我只是好奇終端市場的變化是否也會增加對這些產品的需求。

It's not driven by any particular external factor, which -- that's always obviously a key to being competitive to be able to have options from our pricing standpoint. But it's not driven or triggered by a particular external factor that helps us be more competitive. It's one thing we can say. I just would to clarify, we have 1 year left of our employee initiative drive for 5. We've left those stretch goals out there for 2024. That's an internal employee number, and we'll launch a new employee initiative that we'll announce in December of next year. So next year at this time.

它不是由任何特定的外部因素驅動的，從我們的定價角度來看，這顯然是保持競爭力的關鍵。但這並不是由有助於我們提高競爭力的特定外部因素所驅動或觸發的。這是我們可以說的一件事。我只是想澄清一下，我們的員工倡議活動還剩1 年時間，即5 年。我們已將這些延伸目標留到2024 年。這是一個內部員工編號，我們將啟動一項新的員工倡議，我們將明年12月公佈。那麼明年的這個時候。

Then the second thing, there was a comment also made a lot of moving parts within residential, but the comment made on positive retail signs. I just wonder if we could dig into that a little bit. What are the positive retail signs that you're seeing that provide encouragement in that business?

第二件事是，有一條評論也對住宅領域產生了很多影響，但該評論是針對積極的零售跡象。我只是想知道我們是否可以深入研究。您看到哪些積極的零售跡象可以為該行業提供鼓勵？

I wouldn't read too much into at this point, we just had the first housing starts, for example, has some correlation to residential business. We see a little bit of retail activity that's more positive. But this is a very low portion of the year for the bulk of our residential products. We're just giving -- there's a few tiny signs of improvement there. And the biggest factor for us is not going to be even so much of the retail, but it's what's between retail and us in that case. So I just early signs, which I would not draw too many conclusions from but slightly positive.

在這一點上我不會過度解讀，例如，我們剛剛有了第一批住房開工，與住宅業務有一定的相關性。我們看到一些零售活動更為積極。但對於我們的大部分住宅產品來說，這是一年中非常低的部分。我們只是在給予──那裡有一些微小的改善跡象。對我們來說，最大的因素不是零售業，而是零售業和我們之間的關係。所以我只是早期的跡象，我不會從中得出太多的結論，但略有積極的跡象。

And then the last comment I wanted clarity on there was a comment about returning to more normal price/mix realization within the business. And I was just trying to square that with -- there was also a comment made about landscape contractor more price sensitive than in the past. And so I'm curious if there is a return to normal or if there is something different within price/mix from an end market standpoint or within your opportunity in that area, just a clarity on that, if you would.

然後我想澄清的最後一條評論是關於在業務內恢復更正常的價格/組合實現的評論。我只是想將這一點與——還有一個評論說景觀承包商比過去對價格更加敏感。因此，我很好奇是否會恢復正常，或者從終端市場的角度來看，價格/組合是否有不同，或者您在該領域的機會是否有所不同，如果您願意的話，請澄清這一點。

Yes. So we talked about returning to a more typical average 1% to 2% price for the year. But the businesses that have high field inventory, we expect to see less realized price than the others. Does that answer your question?

是的。因此，我們討論了今年恢復到更典型的平均 1% 至 2% 價格。但對於現場庫存較高的企業，我們預期其實際價格將低於其他企業。這是否回答你的問題？

Half of it. So do some get more than normal because some are getting less than normal to get you back to normal? I guess that's what I'm trying to figure out.

一半。那麼，是否有些人的攝取量比正常水平要多，因為有些人的攝取量低於正常水平才能讓您恢復正常呢？我想這就是我想要弄清楚的。

I think it relates to something we probably haven't mentioned as often, but we really have a market-based approach to pricing. So we get the price in the market that's relative to features, innovation, customer value. And this is the -- in our guidance reflects the total of that across all the markets.

我認為這與我們可能不經常提到的事情有關，但我們確實有基於市場的定價方法。因此，我們得到的市場價格與功能、創新、顧客價值有關。在我們的指導中，這反映了所有市場的總和。

Yes. So it would be put in...

是的。所以它會被放入...

Our next question comes from the line of Michael Shlisky of D.A. Davidson & Company.

我們的下一個問題來自 D.A. 的 Michael Shlisky。戴維森公司。

I wanted to first touch on the Amplify program. Do you have any sense as to -- I guess it's a 2-part question. One is, do you have any sense as to where you'll see a large cash outlay at the outset of the program to get some of these cost reductions done kind of on a onetime basis?

我想先談談 Amplify 程式。你有什麼感覺嗎——我想這是一個由兩個部分組成的問題。一個是，您是否知道在該計劃開始時您會在哪裡看到大量現金支出，以一次性完成其中一些成本削減？

Maybe secondly, have you figured out how much of the $100 million you want to reinvest, you said it was going to be a portion, but (inaudible) it's just a small piece of it or almost all of it will go back to R&D or other kinds of growth initiatives?

也許其次，你是否計算過你想要再投資的 1 億美元中有多少，你說這將是一部分，但（聽不清楚）這只是其中的一小部分，或者幾乎全部將返回研發或其他類型的成長舉措？

Yes. So we will see some onetime and restructuring charges that will be reflected in our GAAP earnings. We'll ramp those up over time as we implement and we'll communicate those as we evolve. We have set up our transformational productivity office this quarter and are really beginning to get into all of those details.

是的。因此，我們將看到一些一次性費用和重組費用，這些費用將反映在我們的公認會計原則收益中。隨著時間的推移，我們將在實施過程中逐步完善這些內容，並在發展過程中進行溝通。我們在本季設立了轉型生產力辦公室，並真正開始研究所有這些細節。

Your question on reinvestment, yes, we do intend to reinvest as much as maybe 50% of this in our -- back in our business. We want to invest in innovation and technology and in areas where we can see accelerating our profitable growth.

你關於再投資的問題，是的，我們確實打算將其中 50% 的資金再投資到我們的業務中。我們希望投資於創新和技術以及可以加速獲利成長的領域。

Got it. And then I wanted to just follow up on some comments you made about ramping up in the professional business in the last quarter so to get production rates moving. I'm kind of curious, was there anything down there that was out of the ordinary for Toro's history? Or is it just typically total doing what it does best and kind of being flexible when they have to. And I guess, given the backlogs you've got and some of the trends you're seeing, do you think you need to permanently grow the capacity of underground construction and golf and grounds and any other businesses with some additional permanent square footage there? Or is it all just very temporary to kind of meet the current market condition?

知道了。然後我想跟進您關於上個季度專業業務成長的一些評論，以提高生產力。我有點好奇，托羅的歷史有什麼不尋常的地方嗎？或者它只是通常完全做它最擅長的事情，並在必要時保持靈活性。我想，考慮到您所積壓的訂單以及您所看到的一些趨勢，您認為您是否需要永久增加地下建築、高爾夫球場和場地以及任何其他擁有一些額外永久面積的企業的容量？或者這一切只是為了滿足當前的市場狀況而暫時的？

So the first part of your question, the results are really the effect of doing what we do. So it's the combination of many disciplines within The Toro Company, really focused on our integrated supply chain team and incredible work that was done in our plants to get additional work output. That was based on a healthier supply base and more consistent supply of components that really enable that.

所以你問題的第一部分，結果實際上是我們所做的事情的效果。因此，它是 Toro 公司內許多學科的結合，真正專注於我們的整合供應鏈團隊以及我們工廠中為獲得額外工作產出而完成的令人難以置信的工作。這是基於更健康的供應基礎和更穩定的零件供應，真正實現了這一點。

If you break down the capacity question, that's really a split answer. So in areas where we see an inflection in growth rate going forward, underground construction et cetera. We are adding structural capacity to be able to support that into the future. We see a different growth rate than probably a historical growth rate in those areas. In areas that we know that we're going to return to a more typical glide path, it's like golf and grounds, we're working not to add structural capacity that we would regret and instead using our existing capacity in a flexible way. So shifting production between facilities, working more extended hours, et cetera, that's really the solutions that we're looking for, for those businesses that we expect to return to more traditional growth rates.

如果你分解容量問題，這確實是一個分裂的答案。因此，在我們看到未來成長率出現拐點的領域，地下建築等。我們正在增加結構能力，以便能夠支持未來的發展。我們看到這些領域的成長率可能與歷史成長率不同。在我們知道我們將返回到更典型的滑行路徑的領域，例如高爾夫球場和場地，我們正在努力不增加我們會後悔的結構能力，而是以靈活的方式利用我們現有的能力。因此，對於那些我們希望恢復到更傳統成長率的企業來說，在工廠之間轉移生產、延長工作時間等等，這確實是我們正在尋找的解決方案。

Thank you. I'm showing no further questions at this time. I'd like to turn the call back over to Ms. Kerekes for any closing remarks.

謝謝。我目前沒有提出任何進一步的問題。我想將電話轉回給 Kerekes 女士，讓其結束語。

Thank you, everyone, for your questions and interest in The Toro Company. We wish you all a joyful holiday season, and we look forward to talking with you again in March to discuss our fiscal 2024 first quarter results.

感謝大家提出問題以及對 Toro 公司的興趣。我們祝福大家有個愉快的假期，我們期待在 3 月再次與您交談，討論我們 2024 財年第一季的業績。

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.

謝謝。女士們、先生們，今天的會議到此結束。感謝大家的參與。您現在可以斷開連線。祝你有美好的一天。