UFP Industries Inc (UFPI) 2024 Q2 法說會逐字稿

Good day, and welcome to the Q2 2024 UFP Industries Inc., earnings conference call and webcast. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，歡迎來到 UFP Industries Inc. 2024 年第二季財報電話會議和網路廣播。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker, Mr. Dick Gauthier, Vice President of Investor Relations. Please go ahead, sir.

現在我想將會議交給您的發言人，投資者關係副總裁迪克·高蒂爾先生。請繼續，先生。

Welcome to the second-quarter 2024 conference call for UFP Industries. Hosting the call today are CEO, Matt Missad; and CFO, Mike Cole. Matt and Mike will offer prepared remarks, and then the call will be open for questions.

歡迎參加 UFP Industries 2024 年第二季電話會議。今天主持電話會議的是執行長 Matt Missad；和首席財務官邁克·科爾。馬特和麥克將發表準備好的講話，然後電話會議將開放供提問。

This conference call is available simultaneously in its entirety to all interested investors and news media through our webcast at ufpi.com. A replay will also be available at that website.

所有有興趣的投資者和新聞媒體均可透過我們在 ufpi.com 上的網路廣播同時觀看本次電話會議的全部內容。該網站也將提供重播。

Before I turn the call over to Matt Missad, let me remind you that today's press release and presentation include forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are subject risks and uncertainties that could cause actual results to differ materially from the company's expectations and projections. These risks and uncertainties include, but are not limited to, those factors identified in the press release and in the filings with the Securities and Exchange Commission.

在我將電話轉給馬特·米薩德之前，請允許我提醒您，今天的新聞稿和簡報包含 1995 年《私人證券訴訟改革法案》中定義的前瞻性陳述。這些陳述存在風險和不確定性，可能導致實際結果與公司的預期和預測有重大差異。這些風險和不確定性包括但不限於新聞稿和向美國證券交易委員會提交的文件中確定的因素。

I will now turn the call over to Matt Missad.

我現在將把電話轉給馬特·米薩德。

Thank you, Dick, and good morning, everyone. We appreciate you taking the time to listen to our second-quarter results and to hear what our plans are for the balance of the year and beyond. The second quarter was generally in line with expectations, and our team was able to roll with the changes in the economy and in the demand. I'd like to thank them for their excellent work. If the last couple of months are any indication, we will need to follow [Bowie's] advice to turn and face the strange changes.

謝謝迪克，大家早安。我們感謝您花時間聆聽我們第二季的業績以及我們今年及以後的計劃。第二季整體符合預期，我們的團隊能夠適應經濟和需求的變化。我要感謝他們的出色工作。如果過去幾個月有任何跡象的話，我們將需要遵循[鮑伊]的建議，轉身面對奇怪的變化。

Factors such as a stranger-than-fiction election season; a Fed, which like an adrenaline-fueled Olympian may have over-rotated on the landing with the higher-for-longer interest rates; and an eye-popping federal debt will cause further economic concerns. The balance of 2024 is likely to be more challenged than originally forecast.

比小說更離奇的選舉季等因素；美聯儲，就像一位腎上腺素飆升的奧運選手，在著陸時可能會過度輪換，利率更高、持續時間更長；令人瞠目結舌的聯邦債務將引發進一步的經濟擔憂。2024 年的餘下時間可能比最初預測的面臨更多挑戰。

We are seeing declines in unit volume in most business units. Slack demand creates competitive pressures as supply outstrips demand. Any reduction in interest rates during the balance of 2024 is unlikely to spur enough growth to provide a material impact in 2024 but could aid 2025 and beyond.

我們發現大多數業務部門的單位銷售量都在下降。由於供應超過需求，需求疲軟會產生競爭壓力。2024 年餘下時間的任何降息都不太可能刺激經濟成長，從而在 2024 年產生實質影響，但可能會在 2025 年及以後有所幫助。

Our near-term focus is on maximizing capacity utilization through strategic facility rationalization, weeding out underperformance, reducing SG&A costs in the nonstrategic and noncritical areas to keep them in line with gross profit targets, and to simplify our operating structure even further. Because automation and plant specialization have made us more productive, it enables us to further consolidate locations.

我們近期的重點是透過策略設施合理化來最大限度地提高產能利用率，消除表現不佳的問題，降低非策略和非關鍵領域的銷售、管理和行政費用，使其與毛利目標保持一致，並進一步簡化我們的營運結構。由於自動化和工廠專業化提高了我們的生產效率，因此我們能夠進一步整合地點。

Delivering exceptional customer service is a key driver for many of our locations as is avoiding additional freight costs from being further from our customers. However, as we have expanded our transportation capabilities and improved our manufacturing efficiencies, we have more opportunities to consolidate manufacturing, offset cost increases, and still provide excellent customer service.

提供卓越的客戶服務是我們許多分公司的關鍵驅動因素，因為避免因距離客戶較遠而產生額外的貨運成本。然而，隨著我們擴大運輸能力並提高製造效率，我們有更多機會整合製造、抵銷成本增加，並且仍提供優質的客戶服務。

While reducing operating and overhead cost is a strong focus, we know that to enhance future growth, we must continue to create more value through innovation, new products and automation as well as deploying our capital wisely. In spite of short-term challenges, we remain confident in our long-term strategy, have ample capital to deploy and believe we are uniquely positioned to invest further -- to further accelerate our long-term growth.

雖然降低營運和管理成本是我們的重點，但我們知道，為了促進未來成長，我們必須繼續透過創新、新產品和自動化以及明智地部署我們的資本來創造更多價值。儘管面臨短期挑戰，我們對長期策略仍然充滿信心，擁有充足的資本可供部署，並相信我們處於進一步投資的獨特地位，以進一步加速我們的長期成長。

We have analyzed our runways as we do each quarter. Given the current M&A environment, growth by acquisition remains overpriced for our return model in many areas. Those runways with the best growth potential for organic and greenfield-type growth will receive more capital to execute their plans in lieu of acquisitions.

我們每季都會分析我們的跑道。考慮到當前的併購環境，對於我們在許多領域的回報模式而言，透過收購實現成長的定價仍然過高。那些具有最佳有機成長潛力和綠地式成長潛力的跑道將獲得更多資金來執行其計劃，而不是進行收購。

In terms of capital allocation, over the next 24 months, we expect to allocate the following capital amounts. One, $300 million in packaging for product-specific vertical integration, alternative packaging materials, including steel, corrugate, labels, and geographic expansion and protective packaging expansion. Two, an additional $250 million in the Deckorators brand for marketing, new product launches, and increased capacity. We believe that the Surestone technology is the best in the business. And with proven features and benefits and the ability to achieve further scale and synergies in manufacturing, it is the right time to more significantly invest in this value-added growth vehicle.

在資本配置方面，未來24個月，我們預計將配置以下資本金額。一是價值 3 億美元的包裝，用於特定產品的垂直整合、替代包裝材料，包括鋼材、瓦楞紙、標籤，以及地理擴張和保護性包裝擴張。第二，Deckorators 品牌額外投入 2.5 億美元，用於行銷、新產品發布和增加產能。我們相信 Surestone 技術是業界最好的。憑藉經過驗證的功能和優勢以及在製造領域實現進一步規模和協同效應的能力，現在正是加大投資這種增值成長工具的最佳時機。

Number three, $350 million in construction, primarily to support housing. Projects include facilities in new geographic markets for automation to reduce manufacturing costs, and new product development and launches for several product lines, including OEM and aftermarket products through our RECreate brand.

第三，3.5 億美元的建設，主要用於支持住房。項目包括在新地理市場建立自動化設施以降低製造成本，以及新產品開發和多個產品線的推出，包括透過我們的 RECreate 品牌提供 OEM 和售後市場產品。

Number four, $10 million investment in ProWood for wood protection chemicals and equipment upgrades to consolidate locations and to enhance our product offerings and create patent-protected technologies. The above amounts are in addition to normal maintenance and replacement capital expenditures.

第四，向 ProWood 投資 1000 萬美元，用於木材保護化學品和設備升級，以鞏固位置並增強我們的產品供應並創造受專利保護的技術。上述金額不包括正常維護和更換資本支出。

A quick overview of segment performance and outlook is as follows. Retail solutions. In the second quarter, ProWood unit sales were up 6% overall, in line with the overall market contraction. The team is adding new specialty products in fencing and outdoor spaces while enhancing the ProWood brand.

分部業績和前景的快速概述如下。零售解決方案。第二季度，ProWood 單位銷售量整體成長了 6%，與整體市場萎縮相符。團隊正在圍欄和戶外空間中添加新的專業產品，同時增強 ProWood 品牌。

Deckorators unit sales were down 2% overall, while its decking and railing product unit sales were up 5%. We expect to see a significant shift in customer concentration in 2025, with the overall impact being positive growth with both our Surestone and WPC products.

Decorators 的單位銷售額總體下降了 2%，而其裝飾和欄桿產品的單位銷售額則增長了 5%。我們預計 2025 年客戶集中度將發生重大轉變，整體影響是我們的 Surestone 和 WPC 產品實現正面成長。

As already mentioned, we will be accelerating our investment in capacity, new products, marketing, and distribution with Deckorators to meet the expected increase in demand. Our product strategy is to grow applications on the exterior of the home and in the yard while also adding new applications inside the home. While increased marketing and new product expenses may drag on earnings near term, we are very confident that they will drive more shareholder value more quickly than our previous level of spend.

正如已經提到的，我們將與 Decctorors 一起加快產能、新產品、行銷和分銷方面的投資，以滿足預期的需求成長。我們的產品策略是增加家庭外部和院子裡的應用，同時也在家庭內部增加新的應用。雖然行銷和新產品費用的增加可能會拖累近期的收益，但我們非常有信心它們將比我們之前的支出水平更快地帶來更多的股東價值。

The outlook for retail based on the repair and remodel statistics is expected to be down mid-single digits for the balance of 2024. Longer term, the age of the housing stock indicates the need for an increased level of repair and remodel spending. In construction, the site built business unit has been solid in a down market. Unit sales were up 4% in the quarter. Factory built has performed well as unit sales are up 19%.

根據維修和改造統計數據，預計 2024 年剩餘時間零售業前景將下降中個位數。從長遠來看，房屋存量的年齡表明需要增加維修和改造支出。在建築方面，現場建造業務部門在低迷的市場中表現穩健。本季單位銷售成長 4%。工廠建設表現良好，銷量成長 19%。

The outlook for site built will be down single digits for the balance of the year, while factory built is expected to continue to outperform prior year for the balance of 2024.

預計 2024 年剩餘時間的建成工地前景將下降個位數，而預計 2024 年剩餘時間建成的工廠將繼續好於去年。

UFP packaging. Structural packaging continues to face soft demand and competitive pressures. The sales organization is driving new customer acquisition, which we expect will become evident in 2025. Given the demand environment and the impact of automation on increasing capacity without increasing footprint, the structural packaging team is aggressively pursuing strategic facility consolidation and cost rationalization which we are confident can be achieved while maintaining excellent customer service.

UFP 包裝。結構包裝持續面臨需求疲軟和競爭壓力。銷售組織正在推動新客戶的獲取，我們預計這一點將在 2025 年變得明顯。考慮到需求環境以及自動化對在不增加佔地面積的情況下增加產能的影響，結構包裝團隊正在積極尋求戰略性設施整合和成本合理化，我們有信心在保持卓越客戶服務的同時實現這一目標。

PalletOne has performed well with unit sales up 10%. The previous overhang of excess pallets has largely worked its way through the system and demand is more in line with historical norms. With the current demand environment and our growing investment in technology, innovation, marketing and analytics, the corporate department team is executing its plans to focus on high-priority projects and reducing or deferring costs in projects, which have a less significant impact. The effort to drive savings is made more difficult due to increased regulatory and risk costs such as cybersecurity, audit, new SEC reporting, and other compliance requirements which have increased our cost an estimated $10 million since 2020.

PalletOne 表現良好，銷量成長了 10%。先前懸置的多餘托盤已在很大程度上透過系統發揮作用，需求更符合歷史規範。隨著當前的需求環境以及我們對技術、創新、行銷和分析的投資不斷增加，公司部門團隊正在執行其計劃，重點關注高優先級項目，並減少或推遲影響較小的項目的成本。由於網路安全、審計、新的 SEC 報告和其他合規要求等監管和風險成本的增加，自 2020 年以來，我們的成本估計增加了 1000 萬美元，因此，推動節約的努力變得更加困難。

Other than the strategic growth areas, we intend to make sure our SG&A costs get in line with historical targets. Some other areas of interest are: one, new products. New product sales for the second quarter were $133.6 million, and year to date were $259.5 million. We are on track for our annual 2024 target of $510 million. As you know, new product development is an integral part of each business unit's strategic plan, and we continue to drive that faster.

除了策略性成長領域外，我們還打算確保我們的銷售管理費用與歷史目標保持一致。其他一些令人感興趣的領域是：一、新產品。第二季新產品銷售額為 1.336 億美元，年初至今為 2.595 億美元。我們正在努力實現 2024 年 5.1 億美元的年度目標。如您所知，新產品開發是每個業務部門策略計畫不可或缺的一部分，我們將繼續加快這一進程。

Number two, raw materials. The lumber market declined during the quarter and is expected to remain well below normal levels as supply exceeds demand. With new production coming online this year, we expect curtailments to occur in older, less-efficient facilities.

第二，原料。本季木材市場下滑，由於供應超過需求，預計仍將遠低於正常水準。隨著今年新生產的投產，我們預計舊的、效率較低的設施將出現減產。

Number three, human capital. The U-6 Unemployment Index was up to 7.7% at the end of June versus 6.9% at the end of April. Continuing a year-long trend, the majority of new jobs are in government, healthcare, social services, and nonprofits. These jobs do not generally boost GDP. Inflation has made it more difficult for many to make ends meet and the increased tax burdens further reduced purchasing power. This has enabled the creation of availability of labor, which has improved since last year, and we are still seeking the best hard-working talent we can find.

第三，人力資本。6 月底 U-6 失業率指數高達 7.7%，而 4 月底為 6.9%。延續一年來的趨勢，大多數新工作來自政府、醫療保健、社會服務和非營利組織。這些工作通常不會促進 GDP 成長。通貨膨脹使許多人更難以維持收支平衡，而稅負的增加進一步降低了購買力。這使得勞動力的供應量自去年以來有所改善，而且我們仍在尋找我們能找到的最優秀的勤奮人才。

Number four, M&A activity has picked up, and more companies are accepting the fact that pandemic-generated returns from excess deficit spending are not realistic gauges of future performance. The multiple expectations are still artificially high in many cases, although there appears to be some softening as buyers and sellers acknowledge the lower demand environment.

第四，併購活動增加，越來越多的公司接受這樣一個事實：大流行帶來的超額赤字支出的回報並不是衡量未來績效的現實指標。在許多情況下，多重預期仍然人為地偏高，儘管由於買家和賣家都承認需求較低的環境，預期似乎有所減弱。

Now I'd like to turn it over to Mike Cole to review the financial information.

現在我想將其交給 Mike Cole 來審核財務資訊。

Thank you, Matt. Our consolidated results this quarter include a 7% drop in sales to $1.9 billion, largely driven by a 6% reduction in selling prices, while unit sales declined by 1%. The decline in selling prices resulted from a drop in lumber and more competitive pricing in most business units. Our overall unit sales held up well this quarter in spite of a more challenging demand environment due to the strength of our balanced business model.

謝謝你，馬特。我們本季的綜合業績包括銷售額下降 7%，至 19 億美元，這主要是由於銷售價格下降 6%，而單位銷售額下降了 1%。銷售價格下降是由於木材減少以及大多數業務部門的定價更具競爭力。儘管由於我們均衡的業務模式的優勢，需求環境更具挑戰性，但本季我們的整體銷售仍保持良好。

While adjusted EBITDA dropped 13% to $204 million, we're pleased to report our adjusted EBITDA margin remained well above historical levels at 10.7%. I was also pleased to see our cash cycle improve to 56 days this year from 63 days last year, reducing our investment in net working capital throughout the quarter. Our trailing 12-month return on invested capital also remains at historically high levels at nearly 20%, almost two times our weighted average cost of capital.

雖然調整後 EBITDA 下降 13% 至 2.04 億美元，但我們很高興地報告，調整後 EBITDA 利潤率仍遠高於 10.7% 的歷史水準。我還很高興看到我們的現金週期從去年的 63 天縮短到今年的 56 天，減少了我們整個季度的淨營運資本投資。我們過去 12 個月的投資資本報酬率也維持在近 20% 的歷史高位，幾乎是我們加權平均資本成本的兩倍。

We continue to increase our dividends and more aggressively completed share repurchases at favorable prices. And our balance sheet continues to gain strength with a cash surplus that's grown to over $1 billion this year, providing us with flexibility to pursue our financial and strategic objectives.

我們繼續增加股息，並以優惠的價格更積極地完成股票回購。我們的資產負債表持續增強，現金盈餘今年已成長至超過 10 億美元，為我們實現財務和策略目標提供了靈活性。

Moving on to our segments. Sales in our retail segment dropped 14% to $809 million consisting of a 7% decline in selling prices, a 2% decline due to transfers of certain product sales to other segments, and a 5% decline in unit sales. The unit decline was comprised of a 5% drop in volume with big box customers, while our volume with independent retailers was flat.

繼續我們的部分。我們零售部門的銷售額下降了 14%，至 8.09 億美元，其中銷售價格下降了 7%，由於某些產品銷售轉移到其他部門而下降了 2%，單位銷售額下降了 5%。銷售下降是因為大型客戶的銷售量下降了 5%，而我們與獨立零售商的銷售量持平。

By business unit, we experienced a 6% decline in ProWood, a 4% decline in Edge, and a 2% decline in our Deckorators business unit. We were pleased with our overall sales of Deckorators decking, which increased 15% and continues to experience solid demand.

按業務部門劃分，ProWood 業務部門下降了 6%，Edge 業務部門下降了 4%，Deckorators 業務部門下降了 2%。我們對 Decctorors 地板的整體銷售感到滿意，銷量成長了 15%，需求持續強勁。

In spite of lower overall demand and sales volumes as well as falling lumber prices, we're pleased to report a $4 million increase in retail's gross profits for the quarter, driven by a variety of factors, including better inventory management, SKU rationalization, and operating improvements in each of our business units. Operating profits were flat for the quarter due to a $4 million increase in SG&A expenses.

儘管整體需求和銷售下降以及木材價格下跌，但我們很高興地報告，在多種因素的推動下，本季度零售毛利潤增長了 400 萬美元，包括更好的庫存管理、SKU 合理化和我們每個業務部門的營運改善。由於 SG&A 費用增加了 400 萬美元，本季營業利潤持平。

Moving on to packaging. Sales in this segment dropped 11% to $435 million, consisting of an 8% decline in selling prices and a 6% decrease in units, partially offset by a 3% increase as a result of the transfer of certain product sales from retail. Customer demand in this segment continues to be soft and that's contributed to more competitive pricing.

繼續進行包裝。該部門的銷售額下降了11%，至4.35 億美元，其中銷售價格下降了8%，銷量下降了6%，但由於某些產品銷售從零售轉移而導致的3% 的增長部分抵消了這一增長。該領域的客戶需求持續疲軟，這導致價格更具競爭力。

As a result of these factors, gross profits dropped by $35 million year over year for the quarter. The year-over-year decline in gross profits was partially offset by an $8 million decrease in SG&A resulting from a drop in incentive compensation. Consequently, operating profits in the packaging segment declined by $27 million to $30 million.

由於這些因素，本季毛利年減 3,500 萬美元。毛利的年減被激勵薪酬下降導致的 SG&A 減少 800 萬美元所部分抵銷。因此，包裝部門的營業利潤下降了 2,700 萬美元至 3,000 萬美元。

Turning to construction. Sales in this segment increased 4% to $575 million, as a 4% decline in selling prices was offset by a 7% gain in units and a 1% increase as a result of the transfer of certain product sales from retail. Improvement in volume was due to our factory built unit, which increased 20%, primarily due to an increase in industry production; and our site built unit, which increased 4%, primarily due to market share gains in existing and new products.

轉向建築。該部門的銷售額增長了 4%，達到 5.75 億美元，銷售價格下降 4%，但銷量增長 7%，以及某些產品銷售從零售轉移導致的 1% 增長抵消了銷售價格下降 4% 的影響。產量的提高是由於我們工廠建造的裝置，產量增加了 20%，主要是由於工業產量的增加；我們的現場建造單位增加了 4%，主要是由於現有產品和新產品的市場份額增加。

These volume increases were offset by a decline in our concrete forming unit, while volume in our commercial unit was flat. The decline in selling prices was primarily experienced in our site built and concrete forming business units which, along with the unit declines I mentioned, resulted in a $12 million reduction in our overall gross profits for the quarter. When combined with a $2 million decrease in our SG&A due to lower incentive compensation, our operating profits declined by $10 million to $52 million for the quarter.

這些銷售量的成長被我們的混凝土成型裝置的下降所抵消，而我們的商業裝置的銷售量則持平。銷售價格的下降主要發生在我們的現場建造和混凝土成型業務部門，再加上我提到的部門下降，導致我們本季的整體毛利減少了 1,200 萬美元。再加上由於激勵薪酬降低而導致我們的 SG&A 減少 200 萬美元，我們本季的營業利潤下降了 1,000 萬美元，降至 5,200 萬美元。

As we manage through this cycle, each segment continues to focus on executing our strategies to grow our portfolio of value-added products. Our year-to-date ratio of value-added sales to total sales improved slightly to 68% this year from 67% last year. And our ratio of new product sales to total sales dropped slightly to 7.3% this year from 7.4% last year, as we've made our criteria for qualifying more stringent, including a minimum margin threshold. We're also mindful of our cost structure in this environment as we ensure the company is appropriately sized relative to demand, while still investing in the resources needed to achieve our long-term objectives for growth, product innovation, improving our efficiencies, and building our brands.

在我們度過這個週期的過程中，每個部門都繼續專注於執行我們的策略，以擴大我們的加值產品組合。年初至今，我們的增值銷售額佔總銷售額的比例從去年的 67% 略微提高至 68%。我們的新產品銷售額佔總銷售額的比例從去年的 7.4% 略有下降，今年為 7.3%，因為我們提高了資格標準，包括最低利潤門檻。我們也關注這種環境下的成本結構，因為我們確保公司規模相對於需求適當，同時仍投資於實現成長、產品創新、提高效率和建設的長期目標所需的資源。

Our SG&A expenses were in line with plan for the quarter and were $3 million lower than last year, driven primarily by lower bonus and sales incentives offset by higher base wages and benefit costs. Given the more conservative outlook we have for demand, we'll step up our efforts to selectively reduce costs.

我們的 SG&A 支出符合本季的計劃，比去年減少了 300 萬美元，這主要是由於獎金和銷售激勵措施的減少，但基本工資和福利成本的增加所抵消。鑑於我們對需求的看法較為保守，我們將加強有選擇地降低成本。

Moving on to our cash flow statement. Our cash flow from operations was $239 million compared to $321 million last year due to an $18 million decline in our net earnings and noncash expenses, and an increased investment in our working -- net working capital since year-end, which was $64 million higher this year than last year. In the first six months of 2023, we were able to reduce our inventory substantially as we adjusted from the peak demand of the pandemic.

繼續我們的現金流量表。我們的營運現金流為2.39 億美元，而去年為3.21 億美元，這是由於我們的淨利潤和非現金支出減少了1,800 萬美元，以及自年底以來對營運淨營運資本的投資增加，增加了6,400萬美元今年比去年。2023 年前 6 個月，我們根據疫情高峰需求進行了調整，從而大幅減少了庫存。

We believe our cash cycle is the best measure of our working capital management, and we're pleased that it declined to 56 days this year from 63 days last year due to a two-day improvement in our receivable cycle as our receivables remain a healthy 94% current and a five-day improvement in our days supply of inventory, driven by our construction and packaging segments.

我們相信我們的現金週期是衡量我們營運資金管理的最佳指標，我們很高興看到現金週期從去年的63 天下降到今年的56 天，這是由於我們的應收帳款週期改善了兩天，因為我們的應收帳款保持健康在我們的建築和包裝部門的推動下，我們的庫存日供應量目前已增加 94%，且連續五天有所改善。

Our investing activities included $107 million in capital expenditures, which includes $68 million of maintenance CapEx and $39 million of expansionary CapEx. As a reminder, our expansionary investments are primarily focused on three areas: expanding our capacity to manufacture new and value-added products; geographic expansion in core higher-margin businesses; and achieving efficiencies through automation.

我們的投資活動包括 1.07 億美元的資本支出，其中包括 6,800 萬美元的維護資本支出和 3,900 萬美元的擴張性資本支出。需要提醒的是，我們的擴張性投資主要集中在三個領域：擴大我們製造新產品和加值產品的能力；核心高利潤業務的地域擴張；並透過自動化提高效率。

Finally, our financing activities included returning capital to shareholders through almost $41 million of dividends and $137 million of share repurchases this year. Through the end of last week, we accumulated a total of $186 million of repurchases out of the $200 million authorization limit that expires at the end of this month.

最後，我們的融資活動包括今年透過近 4,100 萬美元的股息和 1.37 億美元的股票回購向股東返還資本。截至上週末，我們在本月底到期的 2 億美元授權限額中累計回購了 1.86 億美元。

Turning to our capital structure and resources, we continue to have a strong balance sheet with over $1 billion in surplus cash compared to $702 million last year. And our total liquidity was $2.3 billion, which includes cash and availability under long-term lending agreements.

就我們的資本結構和資源而言，我們仍然擁有強勁的資產負債表，盈餘現金超過 10 億美元，而去年為 7.02 億美元。我們的總流動資金為 23 億美元，其中包括現金和長期貸款協議下的可用資金。

With respect to capital allocation, we plan to continue to pursue a balanced and return-driven approach. As we've discussed in the past, our highest priority for capital allocation is to drive organic and inorganic growth that results in higher margins and returns. Our strategy also includes continuing to grow our dividends in line with our anticipated free cash flow growth and repurchase our stock to offset dilution from share-based compensation plans. We'll continue to opportunistically buy back stock when it's trading at a discounted value.

在資本配置方面，我們計劃繼續奉行均衡、回報驅動的方針。正如我們過去所討論的，我們資本配置的首要任務是推動有機和無機成長，從而帶來更高的利潤和回報。我們的策略還包括根據我們預期的自由現金流成長繼續增加股息，並回購我們的股票以抵消基於股票的薪酬計劃的稀釋。當股票以折扣價交易時，我們將繼續機會主義地回購股票。

With these points in mind, our Board approved a quarterly dividend of $0.33 a share to be paid in June representing a 10% increase from the rate paid a year ago. Our Board also approved another $200 million share repurchase authorization that expires at the end of July 2025.

考慮到這些要點，我們的董事會批准在 6 月支付每股 0.33 美元的季度股息，比一年前支付的股息增加 10%。我們的董事會也批准了另一筆 2 億美元的股票回購授權，該授權將於 2025 年 7 月底到期。

With regard to CapEx, earlier this year, we indicated that we plan to meaningfully increase our total capital expenditures to an estimated range of $250 million to $300 million in 2024 to capitalize on the automation and higher-margin growth opportunities we see in each of our segments. So far this year, we've already approved $200 million of projects with another $100 million of requests in the pipeline for evaluation. The timing of our investments may vary, however, as a result of lead times for equipment as well as the time needed for site selection in the case of investments in new locations.

關於資本支出，今年早些時候，我們表示，我們計劃在2024 年將總資本支出大幅增加至2.5 億至3 億美元，以利用我們在每個業務中看到的自動化和更高利潤的成長機會。今年到目前為止，我們已經批准了 2 億美元的項目，另有 1 億美元的評估請求正在醞釀中。然而，由於設備的交付週期以及在新地點投資時選址所需的時間，我們的投資時間可能會有所不同。

Finally, we continue to pursue a pipeline of M&A opportunities that are a strong strategic fit while providing higher-margin return and growth potential. Recently, we've seen more activity in the pipeline, which is encouraging. As a reminder, our first priority is to grow through M&A. But if the opportunities aren't present or valuations aren't appropriate, we will pivot to greenfield growth, which we've considered in our CapEx targets.

最後，我們繼續尋求一系列策略契合的併購機會，同時提供更高的利潤回報和成長潛力。最近，我們看到更多的活動正在醞釀中，這是令人鼓舞的。提醒一下，我們的首要任務是透過併購來實現成長。但如果機會不存在或估值不合適，我們將轉向綠地成長，我們已在資本支出目標中考慮了這一點。

I'll finish up with comments about our outlook for the rest of the year. We believe the soft demand and competitive pricing we're currently experiencing will continue for the balance of the year which will make for more challenging unit sales and profit comparisons. Further, we anticipate any reduction in interest rates will not have a significant impact on market demand until sometime in 2025.

最後我將對我們今年剩餘時間的前景發表評論。我們相信，我們目前所經歷的疲軟需求和有競爭力的價格將在今年餘下時間持續下去，這將使單位銷售和利潤比較更具挑戰性。此外，我們預計直到 2025 年某個時候，利率的任何降低都不會對市場需求產生重大影響。

For the balance of the year by segment, we anticipate demand in retail will decrease mid-single digits. Packaging will decrease mid- to high-single digits. And construction will increase low- to mid-single digits, reflecting the continued strength of the factory built unit. Finally, we believe we'll continue to gain market share in each of our segments that will help offset the impact of lower demand.

對於今年剩餘的細分市場，我們預計零售需求將下降中個位數。包裝將減少中高個位數。施工量將以低至中個位數成長，反映出工廠建造的單位的持續實力。最後，我們相信我們將繼續在每個細分市場中獲得市場份額，這將有助於抵消需求下降的影響。

While we manage through more challenging conditions in the short term, we remain confident in our long-term growth and margin potential, and we'll continue to invest wisely to capitalize on these opportunities. That's all I have in the financials. Matt?

雖然我們在短期內應對更具挑戰性的條件，但我們對長期成長和利潤潛力仍然充滿信心，我們將繼續明智地投資以利用這些機會。這就是我在財務方面的全部內容。馬特？

Thank you, Mike. And just to clarify, I think the dividend that was recently approved is payable in September, not in June. So I just wanted to clarify that.

謝謝你，麥克。澄清一下，我認為最近批准的股息應在 9 月支付，而不是 6 月。所以我只是想澄清這一點。

And now I'd like to open it up for any questions that you may have.

現在我想回答你們可能有的任何問題。

(Operator Instructions) Reuben Garner, Benchmark.

（操作員指示）Reuben Garner，基準。

There seems to be an increased focus, maybe just me picking it up in the press release or your comments this morning. But on market share gains -- and I understand the story in Deckorators for sure. I was wondering if you could kind of elaborate on some of the opportunities or thoughts you have in some of your other markets, whether it's construction or packaging.

似乎越來越受到關注，也許只是我在新聞稿或您今天早上的評論中註意到了這一點。但就市場佔有率的成長而言——我確實理解《裝飾者》中的故事。我想知道您是否可以詳細說明您在其他一些市場（無論是建築還是包裝）中的一些機會或想法。

Sure. That's a good question. I think from a construction standpoint, again, we're trying to drive some new product, some innovation. We mentioned the RECreate brand for manufactured housing, factory built. Opportunities appear to be much stronger.

當然。這是個好問題。我認為從建設的角度來看，我們再次嘗試推動一些新產品、一些創新。我們提到了工廠建造的預製房屋 RECreate 品牌。機會似乎強大得多。

Again, we've reiterated this many times, but the affordability of factory-built housing is a very positive outcome, we think, and it's going to continue to drive more housing in that direction. One of the reasons we believe that housing is struggling to meet the needs is because of the affordability factor, and we think factory-built has an advantage there. So very optimistic.

我們已經多次重申這一點，但我們認為，工廠建造的住房的可負擔性是一個非常積極的結果，它將繼續推動更多的住房朝這個方向發展。我們認為住房難以滿足需求的原因之一是負擔能力因素，而我們認為工廠建造的房屋在這方面具有優勢。所以非常樂觀。

On the site built side, again, the opportunities, as Mike mentioned, are geographic expansion. There's markets that we're not in today that people are migrating to. And we think those are going to be very strong going forward as well.

正如麥克所提到的，在網站建設方面，機會再次在於地理擴張。人們正在遷移到一些我們今天不存在的市場。我們認為這些未來也將非常強勁。

On the packaging side, we're trying to rationalize not only our facilities, but also our customer base. And there's many customers that we're working to gain share with. We're trying to win customers, and that's where we're going to pursue the market share gains. There may be others that we can't get low enough in price to make it work for both the customer and for ourselves. So that's where there's a balance within the packaging space.

在包裝方面，我們不僅努力合理化我們的設施，還努力合理化我們的客戶群。我們正在努力爭取與許多客戶分享。我們正在努力贏得客戶，這就是我們追求市場份額成長的地方。可能還有其他一些我們無法以足夠低的價格使其對客戶和我們自己都有利。這就是包裝空間內的平衡。

And I think also on packaging is the protective packaging materials and the opportunities in alternative materials such as steel that we want to take a look at and grow with. They serve a different customer and provide some different opportunities for us as well. So that's a quick overview, Reuben.

我認為包裝方面還包括保護性包裝材料以及替代材料（例如鋼材）的機會，我們希望關注並與之一起成長。他們服務不同的客戶，也為我們提供了一些不同的機會。這是一個快速概述，魯本。

Great. And then you mentioned competitive pricing pressures, I think, in the packaging business. What about in retail and in construction? Anything that you would call out in either of those end markets from the competitive pressures? I know pricing was down year over year, particularly in construction. But more on a sequential basis, have you seen any kind of competitive pressures pick up in either of those end markets?

偉大的。然後你提到了包裝業務中的競爭性定價壓力。零售業和建築業又如何呢？對於這兩個終端市場的競爭壓力，您有什麼想說的嗎？我知道價格逐年下降，特別是在建築領域。但從連續的角度來看，您是否看到這兩個終端市場出現了任何形式的競爭壓力？

Yeah. I guess what I would say there, Reuben, is that within the big box segment, the pricing are adjusted based on lumber markets. So there's already rationalization on the price side. With respect to construction itself, there's adjustment periods every 90 days or so. So I think those largely get adjusted based on market trends and market changes. Not to say that there aren't some there, but I think they're much more manageable at this point.

是的。魯本，我想我想說的是，在大型木材市場中，定價是根據木材市場進行調整的。所以價格方面已經合理化了。就施工本身而言，每90天左右就有一個調整期。所以我認為這些很大程度上會根據市場趨勢和市場變化進行調整。並不是說那裡沒有，但我認為目前它們更容易管理。

Got it. Thanks for the detail, guys, and good luck [through this] year.

知道了。謝謝你們提供的細節，夥計們，祝你們今年好運。

Kurt Yinger, D.A. Davidson.

庫爾特·英格，D.A.戴維森。

I wanted to start out with Deckorators. And Matt, you had made a comment in the prepared remarks around maybe some shift in customer composition. And it kind of dovetails into what has been some discussions around some shelf space movements for 2025 following line reviews. And I guess I'm just wondering, are you expecting any changes in your retail positioning heading into next year? And if so, how should we think about kind of sizing that impact?

我想從裝飾器開始。馬特，您在準備好的評論中就客戶組成可能發生的一些變化發表了評論。這與在線路審查後圍繞 2025 年一些貨架空間變動的一些討論相吻合。我想我只是想知道，您預計明年的零售定位會有任何變化嗎？如果是這樣，我們應該如何考慮衡量這種影響的大小？

Yeah, it's a good question, Kurt. I think obviously, product line review is our process, and we go through those periodically. We're in the midst of those now. What we believe is we're going to increase our overall volume. I'm not going to comment on where or how at this point, but we're very optimistic about the future.

是的，這是一個好問題，庫爾特。我認為顯然，產品線審查是我們的流程，我們會定期進行這些審查。我們現在正處於其中。我們相信我們將增加我們的整體銷售。目前我不會評論在哪裡或如何進行，但我們對未來非常樂觀。

And I think the other part for Deckorators is that we have a number of opportunities with new products that we just haven't had the capacity to go after. So it's really a twofold. We think we're going to increase sales of current products, but we also see an opportunity for a lot of new products, and that's what we're excited about.

我認為Deckorators 的另一部分是我們有很多新產品的機會，但我們只是沒有能力去追求。所以這確實是雙重的。我們認為我們將增加現有產品的銷量，但我們也看到了許多新產品的機會，這就是我們感到興奮的地方。

Okay. And I guess the earlier question kind of touched on competitive pricing activity in site built. Would you say that pressure is accelerating or pretty consistent at this stage? And if you just look at kind of the single-family numbers, it's not robust, but it seems like a pretty healthy market overall in terms of the starts levels.

好的。我想前面的問題有點牽涉到網站建置中的競爭性定價活動。您認為現階段壓力正在加速還是相當穩定？如果你只看單戶住宅的數量，你會發現它並不強勁，但就開工水平而言，總體而言似乎是一個相當健康的市場。

Is it the slack kind of capacity from multifamily freeing up? Is it new facilities, expansions kind of across the industry, creating some supply mismatch? I mean, what would you say is kind of driving that overall pressure?

是多戶住宅釋放的產能過剩嗎？是否是整個產業的新設施、擴張造成了供應不符？我的意思是，您認為是什麼推動了整體壓力？

Well, I agree with your assessment. I think single-family is solid. Multifamily decline is probably creating some capacity availability. And I'm sure folks are trying to fill that capacity somehow. So to the extent there's pressure, I think that's where it's coming from, at least, at this point.

嗯，我同意你的評價。我認為單親家庭是穩定的。多戶住宅的減少可能會創造一些可用容量。我確信人們正在嘗試以某種方式填補這一容量。因此，就壓力而言，我認為至少在目前這就是壓力的來源。

Got it. Okay. And then just last one. On the retail side, I mean, it was another impressive gross margin quarter despite what I think would be some level of headwind from the trend in lumber prices on the treated business. I guess, could you just give us a little bit more color around some of the operational improvements that you kind of referenced and where that margin enhancement is coming from?

知道了。好的。然後就是最後一張。在零售方面，我的意思是，儘管我認為處理業務的木材價格趨勢會帶來一定程度的阻力，但這是另一個令人印象深刻的毛利率季度。我想，您能否就您提到的一些營運改進以及利潤率的提高來自何處為我們提供更多資訊？

Yeah, that's a good point. What I would say, Kurt, is we're realizing a lot of the changes that were made when we went from a geographic-based to a market-based. We're seeing the retail team and the ProWood team, in particular, do a really good job of driving in efficiencies in their operations. They're utilizing best practices even better than they have in the past. So I think we're seeing a lot of operational efficiencies driving it in.

是的，這是一個好點。庫爾特，我想說的是，當我們從基於地理的方式轉變為基於市場的方式時，我們正在意識到發生了許多變化。我們看到零售團隊，尤其是 ProWood 團隊在提高營運效率方面做得非常好。他們比過去更好地利用了最佳實踐。所以我認為我們看到了很多營運效率的推動。

And I think there's more of that to come through equipment enhancements. So -- and I think the market itself, as I mentioned before, I think to the extent that we're selling through box -- the prices are pretty much determined. So I think at this point, we're just trying to be as efficient as we can, make sure we're keeping our SG&A costs in line and drive as much improvement as we can.

我認為透過設備增強可以實現更多目標。因此，我認為市場本身，正如我之前提到的，我認為就我們透過盒子銷售而言，價格幾乎是確定的。因此，我認為目前我們只是盡力提高效率，確保我們的 SG&A 成本保持一致，並盡可能推動改進。

Adding on to that for a minute, Kurt. As a reminder, the Spartanburg and the Sunbelt plants were purchased a few years ago. And squeezing out the operating improvements in those businesses was going to take time. So part of the driver for the operating improvements is just continuing to enhance the operations of those facilities.

庫爾特，補充一下。提醒一下，斯巴達堡和陽光地帶工廠是幾年前購買的。而這些企業的營運改善需要時間。因此，營運改善的部分驅動力就是繼續增強這些設施的運作。

Got it. Okay. Appreciate the color, guys. And good luck here in Q3.

知道了。好的。欣賞一下這個顏色，夥計們。祝第三季好運。

Ketan Mamtora, BMO.

Ketan Mamtora，BMO。

If I heard you right, right at the start of your prepared remarks, you talked about kind of pretty meaningful investments. If I add all of them up, sounds like about $1 billion. Can you give us some sense of what kind of timeline you're looking at? And what kind of return expectations do you have from these investments?

如果我沒聽錯的話，在您準備好的演講開始時，您談到了一些非常有意義的投資。如果我把它們全部加起來，聽起來大約是 10 億美元。您能否告訴我們您正在考慮什麼樣的時間表？您對這些投資有什麼樣的報酬預期？

Yes. I think, Ketan, as we looked at where we want to grow, each of our business units has solid strategic runways they want to pursue. Our typical first preference is M&A-type transactions because they get us into the space quicker and they bring more people with them and they bring quicker returns generally. So because of the pricing in that marketplace, we're just taking their plans, and we're pivoting towards either organic or greenfield-type opportunities. And for us, that's -- we called out 24 months, but maybe slightly longer than that, maybe slightly quicker depending on how much we can deploy and where the opportunities are.

是的。我認為，Ketan，當我們考慮我們想要發展的領域時，我們的每個業務部門都有他們想要追求的堅實的策略跑道。我們通常的首選是併購類型的交易，因為它們讓我們更快進入這個領域，帶來更多的人，而且通常會帶來更快的回報。因此，由於該市場的定價，我們只是採用他們的計劃，並且我們正在轉向有機或綠地類型的機會。對我們來說，那就是——我們要求 24 個月，但可能比這個稍微長一點，也可能稍微快一點，這取決於我們可以部署多少以及機會在哪裡。

But the main focus is trying to show for our investors that we have a plan to deploy that capital to provide the returns that we historically have provided. And as everyone knows, it takes a little longer to get a greenfield or organic-type operation up to ROI than if you acquire something at a reasonable price. But we think long term, it's going to continue to drive the value and will make us more profitable, less goodwill, and better results.

但主要重點是試圖向我們的投資者表明，我們有計劃部署這些資本，以提供我們歷史上提供的回報。眾所周知，與以合理的價格收購某些東西相比，綠地或有機類型的營運達到投資回報率需要更長的時間。但我們認為，從長遠來看，它將繼續推動價值，並使我們的利潤更高，商譽更少，業績更好。

Interested to say this is -- so did I hear you right that this is over the next two years? Or this is kind of spread over in a longer time frame, Matt?

我有興趣說這是——所以我沒聽錯吧，這是在未來兩年內？或者這會在更長的時間範圍內傳播，馬特？

Yeah. Like I said, Ketan, -- and I'll have Mike kind of chime in to it. I think we set out five-year targets. We want to be able to allocate areas over the next 24 months where they should go. And we have a lot of request for capital, but we're going to prioritize and go through that process. So within the next 24 months to the extent that we haven't deployed it, we will have the plan for where it's going to be deployed.

是的。就像我說的，Ketan，我會讓 Mike 插話一下。我認為我們訂定了五年目標。我們希望能夠在未來 24 個月內分配他們應該去的區域。我們有很多資金請求，但我們將優先考慮並完成該過程。因此，在未來 24 個月內，如果我們尚未部署它，我們將製定部署地點的計劃。

There is always kind of a lag, Ketan, between the time where you've got your plans squared away and when the spend actually occurs. And so the way that I think about it is we laid out our five-year targets for sales growth -- the unit sales growth and EBITDA margin and returns. And in order for us to achieve those targets, this is the capital that will need to be deployed.

Ketan，從你制定計劃的時間到實際支出的時間之間總是存在著一定的延遲。因此，我的想法是，我們制定了五年銷售成長目標——單位銷售成長以及 EBITDA 利潤率和回報。為了實現這些目標，我們需要部署這些資本。

I see. Okay. Understood. No, that makes sense. And then just focusing a little more on the packaging side -- and understand that the markets are challenged right now. But curious as you think about sort of the growth there and the investments there, has your thought process changed at all in terms of -- [through] cycle earnings and margins in the packaging business?

我懂了。好的。明白了。不，這是有道理的。然後更專注於包裝方面——並了解市場目前面臨的挑戰。但是，當您思考那裡的成長和投資時，您的思考過程是否在包裝業務的周期收益和利潤率方面發生了根本變化？

I know in the past, you've talked about packaging as being a key area of growth. You've clearly highlighted kind of more investments there. But margins, at least, and volumes in the last six quarters or so have come under a lot of pressure. So how do you sort of balance investments versus what's going on in the market today?

我知道您過去曾說過包裝是關鍵的成長領域。您已經明確強調了那裡的更多投資。但至少在過去六個季度左右的時間裡，利潤率和銷售都面臨很大的壓力。那麼，您如何平衡投資與當今市場的情況呢？

Yeah. What I would say, Ketan -- and I'll ask Mike to add some color to this, too -- but we focus on the EBITDA margin in that space, and we still believe that that can be a very strong EBITDA margin business. Right now, getting demand in capacity in line is our priority. I think once we get there, that will improve.

是的。我想說的是，Ketan，我也會請 Mike 對此添加一些色彩，但我們專注於該領域的 EBITDA 利潤率，並且我們仍然相信這可能是一項非常強勁的 EBITDA 利潤率業務。目前，滿足產能需求是我們的首要任務。我認為一旦我們到達那裡，情況就會有所改善。

The market is going to be what it is right now. I think it's just generally, it's a little more challenged today. But we think long term, it will revert back to more of a normal market conditions, and there's still consolidation opportunities in that space. So if demand remains lower for longer, that will create consolidation opportunities as well.

市場將是現在的樣子。我認為這只是一般情況，今天面臨的挑戰更大一些。但我們認為，從長遠來看，它將恢復到更正常的市場狀況，並且該領域仍然存在整合機會。因此，如果需求在較長時間內保持較低水平，這也將創造整合機會。

Mike, any color you want to add to that?

麥克，你想添加什麼顏色嗎？

Yeah. Ketan, I think I'd just kind of maybe dive into the details on the margins and how they've changed. One factor that I look at is cost variances. We employ standard costing here, and so I can see unfavorable cost variances coming through all the different facilities within packaging. And for the first six months, it was $20 million. So that annualizes to a pretty big number.

是的。Ketan，我想我可能會深入研究邊緣的細節以及它們是如何變化的。我關注的因素之一是成本差異。我們在這裡採用標準成本核算，因此我可以看到包裝內所有不同設施都存在不利的成本差異。前六個月，這一數字為 2000 萬美元。因此，按年計算，這是一個相當大的數字。

And I think being able to take a step into capacity consolidations and trying to get our cost structure appropriate and optimize for demand, there's a big margin lift there. And then making these investments in the business that Matt talked about that prepare us for more growth and being able to leverage volume increases over time in the future.

我認為，如果能夠採取措施整合產能，並努力使我們的成本結構適當並針對需求進行最佳化，那麼利潤率就會大幅提升。然後對馬特談到的業務進行這些投資，為我們的進一步成長做好準備，並能夠利用未來隨著時間的推移而增加的銷售量。

Stanley Elliott, Stifel.

史丹利·艾利奧特，史蒂菲爾。

Can you talk about the new products you guys are working on? How are these margins stacking up versus the rest of the portfolio? And the importance in kind of reaching the 12.5% kind of longer-term target on EBITDA?

能談談你們正在開發的新產品嗎？與投資組合的其他部分相比，這些利潤率如何？實現 EBITDA 12.5% 的長期目標有多重要？

Yeah, that's a good question. And as Mike indicated in his remarks, we do have a higher target return for new products and all the new products are meeting those -- that higher target. So I think that's a plus. And I think the ones we're working on, the whole idea is to provide more value-add to the customer, create more non-price competitive advantage on the products we're working on, and to help drive that growth and improve and lift the EBITDA margins. So all the ones that we've called out for new products thus far are destined to meet that target.

是的，這是一個好問題。正如麥克在演講中指出的那樣，我們確實為新產品設定了更高的目標回報，並且所有新產品都達到了這些更高的目標。所以我認為這是一個優點。我認為我們正在開發的產品，整個想法是為客戶提供更多附加價值，為我們正在開發的產品創造更多非價格競爭優勢，並幫助推動成長並改善和提高 EBITDA 利潤率。因此，迄今為止我們呼籲推出的所有新產品都注定要達到這一目標。

And on the capacity plans, the $1 billion or so, is the right way to think about it kind of your $200 million or so of growth, plus or minus and $100 million or so of maintenance CapEx and some of the timing, whether sites or other facilities, that's going to be kind of the determining factor?

在容量計劃中，10 億美元左右是考慮 2 億美元左右的增長、加上或減去 1 億美元左右的維護資本支出以及一些時間安排（無論是站點還是時間）的正確方法。將是決定因素嗎？

I think that we talked a little bit. The numbers that I put out there are in addition to the normal maintenance placement-type CapEx. And obviously, we plan to generate significant cash flow each year, too. So we will have ample capital to do even more than what we were outlining here. But that's the distinction I would call to that one, Stanley.

我想我們聊了一點。我在那裡發布的數字不包括正常的維護安置型資本支出。顯然，我們也計劃每年產生大量現金流。因此，我們將有充足的資金來做比我們在這裡概述的更多的事情。但這就是我所說的差別，史丹利。

Mike, anything to add there?

麥克，有什麼要補充的嗎？

No, that's exactly right.

不，完全正確。

And then last for me, cost, a big focus kind of in this environment up and down the portfolio. Any ballpark on kind of what we should think on a cost out for this year or maybe how it manages on the SG&A piece? Just trying to get a sense for kind of what sort of costs are being -- going to be coming out over the next year, 1.5 years?

最後對我來說，成本是在這種環境下投資組合的重點關注點。關於我們應該如何考慮今年的成本支出，或者它如何管理 SG&A 部分，有什麼大致的了解嗎？只是想了解明年（1.5 年）會產生什麼樣的成本？

Yeah. I'll start here, Stanley, and let Mike kind of finish up. But I think we talked about tying SG&A into our historical percentage of gross profit kind of metrics or sales. And then also Mike just called out another $20 million or so of opportunity, I'll call it, within the unfavorable variances. So I think those are two data points that I would say are important.

是的。史丹利，我從這裡開始，然後讓麥克結束。但我認為我們討論過將 SG&A 與我們的毛利指標或銷售額的歷史百分比連結起來。然後麥克剛剛又提出了另一個 2000 萬美元左右的機會，我稱之為，在不利的差異範圍內。所以我認為這兩個數據點很重要。

Mike, what else would you add there?

麥克，你還要加什麼？

Yeah. Stanley, I don't have an overall target for you, but we'll be looking back at our SG&A relative to sales and unit volume, SG&A relative to gross profits. And we want to be able to get back to the types of levels we saw pre-pandemic. And so that will be our focus. And I would expect to start seeing those improvements in 2025.

是的。史丹利，我沒有給你一個總體目標，但我們會回顧一下相對於銷售額和單位銷售的銷售及管理費用，相對於毛利的銷售及管理費用。我們希望能夠回到大流行前的水平。這將是我們的重點。我預計將在 2025 年開始看到這些改進。

Perfect, guys. Thanks so much and best of luck for rest of the year.

完美，夥計們。非常感謝，祝你今年餘下的時間一切順利。

Jay McCanless, Wedbush.

傑伊·麥卡利斯，韋德布希。

So the first one, Matt, this expansion in Deckorators, even though you guys are still seeing negative sales trends in retail, is this more of a specific call that you think you have something in Deckorators that's going to be new and different to the market? Or is this a larger call that retail demand is going to start getting better from here?

所以，第一個，馬特，儘管你們仍然看到零售業的負面銷售趨勢，但裝飾器的擴張，這更像是一個特定的電話，你認為裝飾器中有一些與市場不同的新東西？或者這是一個更大的呼籲，即零售需求將從這裡開始好轉？

Yeah. I guess what I would say, Jay, is it's the former. We believe we have something special with our Deckorators, with our Surestone technology. It's the patented technology, and no one else has it. And for us, we just -- we see a tremendous amount of opportunities, and we think it's just the right time to really invest in those opportunities and help it grow even faster than originally scheduled.

是的。傑伊，我想我會說是前者。我們相信，憑藉我們的 Surestone 技術，我們的 Decorators 具有一些特別之處。這是專利技術，沒有人擁有。對我們來說，我們看到了大量的機會，我們認為現在是真正投資這些機會並幫助其比原計劃更快成長的正確時機。

It's not a broader statement that the retail market is going to miraculously do the hockey stick up into the right in the next six months. But long term, we still think it's going to be strong, but we expect our Deckorators brand to outperform.

這並不是一個更廣泛的聲明，表明零售市場將在未來六個月內奇蹟般地使曲棍球棒進入右側。但從長遠來看，我們仍然認為它會很強勁，但我們預計我們的 Deckorators 品牌會表現出色。

Okay. That's great. Thank you. And then the second question I had, when you talked in the prepared comments about expanding UFP construction, is -- I guess, where are you going with this? And is it going to be in smaller markets or a larger geographic focus in parts of the country? Maybe walk us through where you're planning on expanding.

好的。那太棒了。謝謝。然後，當您在準備好的評論中談到擴大 UFP 建設時，我提出的第二個問題是——我想，您打算怎麼做？是在較小的市場還是在該國部分地區的更大地理區域？也許可以向我們介紹一下您計劃擴展的地方。

Sure. That's a good question, Jay. And I guess what I would say is we've been much more regionalized with our site built group. And so it's been primarily the non-urban Northeast, the Southeast, Mid-Atlantic area, Texas and Colorado. You'll recall, many years ago, we exited California, and Nevada, Arizona, the boom and buzz-type markets, we call them.

當然。這是個好問題，傑伊。我想我想說的是，我們的網站建立團隊已經更加區域化。因此，主要是非城市東北部、東南部、大西洋中部地區、德州和科羅拉多州。你會記得，很多年前，我們退出了加州、內華達州、亞利桑那州，我們稱之為繁榮和熱鬧型市場。

And one of the things we're looking at is the demographic trends where people are moving to, it's creating a lot of opportunities, and that's where we're looking to head is we're going to try to do a little Wayne Gretzky and go to, where the puck is going to be, not where it is right now. And so we see several markets that we're working on where they're getting an influx of residents.

我們正在關注的事情之一是人們正在遷移的人口趨勢，它創造了很多機會，這就是我們所尋求的方向，我們將嘗試做一些韋恩·格雷茨基（Wayne Gretzky）和去冰球將要去的地方，而不是它現在所在的地方。因此，我們看到我們正在開發的幾個市場正在吸引大量居民湧入。

That sounds great. And then the last question I had, lumber -- I'm like you, Matt, I think it seems weird that we haven't seen more talk of curtailments or plants reducing activity. I guess how much longer do you think it takes until we start seeing some of that, especially if single-family starts to continue to kind of be, I mean, good but not great type of market environment?

聽起來很棒。然後是我的最後一個問題，木材——我和你一樣，馬特，我認為我們沒有看到更多關於削減或工廠減少活動的討論，這似乎很奇怪。我想您認為我們需要多長時間才能看到其中的一些情況，特別是如果單戶住宅開始繼續保持良好但不是很好的市場環境？

Yeah. I think -- Kevin told me yesterday, I think the curtailments are going to be a little slower to develop. I think there's still capacity coming online, which is going to be new and modern and much more efficient. And so I would expect curtailments to happen in some of the older facilities. And I think right now, everyone is kind of waiting to see who blinks first. But there will have to be curtailments unless demand picks up.

是的。我認為——凱文昨天告訴我，我認為削減的進度會稍微慢一點。我認為仍有容量上線，這將是新的、現代化的，而且效率更高。因此，我預計一些較舊的設施將會縮減。我想現在每個人都在等著看誰先眨眼。但除非需求回升，否則就必須削減產量。

Thank you. And speakers, I'm showing no further questions in the queue at this time. I would now like to turn the call back over to Mr. Matt Missad for any closing remarks.

謝謝。各位發言者，目前我不會在隊列中顯示任何其他問題。我現在想將電話轉回給馬特·米薩德先生，請他發表結束語。

Well, I'd like to thank you again for spending the time with us today. While the short-term outlook is full of potential changes, long term, we remain on offense and committed to do in the words of Imagine Dragons, whatever it takes to make our company more valuable. Thank you for your investment in us and we'll keep working to ensure great long-term returns. Have a great day.

好吧，我想再次感謝您今天與我們一起度過的時光。雖然短期前景充滿了潛在的變化，但從長遠來看，我們仍然保持進攻態度，並致力於用 Imagine Dragons 的話說，不惜一切代價讓我們的公司更有價值。感謝您對我們的投資，我們將繼續努力確保豐厚的長期回報。祝你有美好的一天。

This concludes today's program. Thank you all for participating. You may now disconnect.

今天的節目到此結束。感謝大家的參與。您現在可以斷開連線。