UFP Industries Inc (UFPI) 2025 Q1 法說會逐字稿

Good day, and welcome to the 2025 UFP Industries, Inc. earnings conference call and webcast. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Stanley Elliott, Director of Investor relations. Please go ahead.

大家好，歡迎參加 2025 年 UFP Industries, Inc. 收益電話會議和網路廣播。（操作員指示）請注意，今天的會議正在錄音。現在，我想將會議交給發言人、投資者關係總監史丹利·艾利奧特先生。請繼續。

Good morning everyone and thank you for joining us to discuss our first quarter results. Joining me on the call today are Will Schwartz, our Chief Executive Officer; and Mike Cole, our Chief Financial Officer. Will and Mike will offer prepared remarks, and then we will open the call to questions.

大家早安，感謝大家加入我們討論第一季的業績。今天與我一起參加電話會議的還有我們的執行長威爾施瓦茨 (Will Schwartz) 和我們的財務長 Mike Cole。威爾和麥克將發表準備好的發言，然後我們將開始提問。

This conference call is available simultaneously to all interested investors and news media through the investor relations section of our website ufpi.com. A replay of the call will be posted to our website as well. Before I turn the call over, let me remind you that today's press release and presentation include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995.

所有有興趣的投資者和新聞媒體均可透過我們網站 ufpi.com 的投資者關係板塊同時收聽本次電話會議。會議重播也將發佈在我們網站上。在轉交電話之前，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》所定義的前瞻性陳述。

These statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties also include, but are not limited to those factors identified in the press release and in the company's filings with the Securities and Exchange Commission. I will now turn the call over to Will.

這些聲明受風險和不確定性的影響，可能導致實際結果與預期有重大差異。這些風險和不確定性還包括但不限於新聞稿和公司向美國證券交易委員會提交的文件中確定的因素。現在我將把電話轉給威爾。

Thank you. Good morning, everyone, and thank you for joining us to discuss our first quarter 2025 earnings results. The challenging trends we discussed with you on our last call in February have continued and the macro environment has become increasingly uncertain. Operations remain challenging, and we are focused on multiple levers under our control to improve results going forward.

謝謝。大家早安，感謝您加入我們討論 2025 年第一季的收益結果。我們在二月上次電話會議上討論的挑戰性趨勢仍在繼續，宏觀環境變得越來越不確定。營運仍然充滿挑戰，我們專注於控制下的多個槓桿來改善未來的績效。

Despite a slower start in January and February, we are more encouraged by recent business trends. Business activity improves sequentially in each month during the quarter, with March trends continuing into the first three weeks of April.

儘管一月和二月的開局較為緩慢，但我們對近期的商業趨勢感到鼓舞。本季每個月的商業活動都逐漸改善，三月的趨勢延續到了四月的前三週。

While we are encouraged by these recent trends, we would also note that visibility remains limited in this current environment. Regardless of the backdrop, we have a sound strategy in place and the right people to execute on our strategies.

雖然我們對最近的這些趨勢感到鼓舞，但我們也要注意到，在當前環境下，可見度仍然有限​​。無論背景如何，我們都有完善的策略和合適的人才來執行我們的策略。

We will continue to focus on things under our control to deliver improved results going forward. We are on track with our cost out programs and have leverage to pull should a market recovery fail to materialize. Our portfolio is more diversified and better positioned than at any point in our 70 year history to win in the marketplace. Lastly, we finished the quarter with $905 million in cash, giving us ample flexibility to continue investing in our future, while maintaining our conservative capital structure. We believe this positions us well in any environment.

我們將繼續專注於我們能控制的事情，以便在未來取得更好的結果。我們的成本削減計劃正在按計劃進行，如果市場復甦未能實現，我們有能力採取行動。我們的投資組合比我們 70 年歷史上的任何時候都更加多樣化，並且更有能力在市場上獲勝。最後，本季結束時我們擁有 9.05 億美元現金，這為我們提供了充足的靈活性，可以繼續投資未來，同時保持保守的資本結構。我們相信，這讓我們在任何環境下都處於有利地位。

Turning to the quarter, first quarter sales generally matched our expectations for low single digit sales declines despite the slower start to the year. Total sales declined 3% from year ago levels. Business improvement from January through the end of the quarter allowed us to recover many of the volumes lost early, but manufacturing variances and higher material costs couldn't be overcome.

回顧本季度，儘管今年開局放緩，但第一季的銷售額總體上符合我們的預期，銷售額下降幅度為個位數。總銷售額較去年同期下降了 3%。從一月到本季末的業務改善使我們能夠恢復早期損失的大部分業務量，但製造差異和更高的材料成本無法克服。

Pricing remains competitive across most markets given the lack of forward visibility. All of this contributed to our earnings per share of $1.30 and adjusted EBITDA of $142 million for the quarter. Margins remain pressured from unfavorable manufacturing variances, competitive pricing, higher input and transportation costs, and unfavorable mix shifts.

由於缺乏前瞻性，大多數市場的定價仍具有競爭力。所有這些促成了我們本季每股收益達到 1.30 美元，調整後 EBITDA 達到 1.42 億美元。利潤率仍然受到不利的製造差異、競爭性定價、更高的投入和運輸成本以及不利的組合變化的壓力。

We believe some of this shortfall is timing, and we remain on track to realize $60 million of structural cost savings from our cost out and capacity reductions by 2026. We also stand ready to further adjust our cost structure depending on what the market environment dictates.

我們認為部分缺口是時間問題，我們仍有望在 2026 年前透過成本削減和產能削減實現 6,000 萬美元的結構性成本節約。我們也準備根據市場環境進一步調整我們的成本結構。

Despite ongoing market volatility, our go-forward strategy remains unchanged, and we will continue to focus on what is under our control and invest in the strategies that have made UFP Industries so successful over the long term. We will continue targeting markets that we believe can deliver higher growth rates and make the necessary organic and inorganic investments to drive these results.

儘管市場持續波動，我們的前進策略保持不變，我們將繼續專注於我們能夠控制的領域，並投資於使 UFP Industries 長期取得巨大成功的策略。我們將繼續瞄準我們認為能夠實現更高成長率的市場，並進行必要的有機和無機投資來推動這些成果。

We will continue to focus on expanding more value add products and innovation across the portfolio with a focus on expanding our margins, while deemphasizing underperforming products and operations. We will continue to closely monitor our expenses and our plant network as well.

我們將繼續致力於在整個產品組合中擴展更多增值產品和創新，重點是擴大我們的利潤率，同時減少表現不佳的產品和營運。我們將繼續密切監控我們的開支和工廠網路。

And finally, all of this will be underpinned by our commitment to maintaining our strong return on capital profile and conservative capital structure, which will remain at the center in guiding our strategy. New product sales totaled $106 million in the quarter, or 6.7% of sales. We continue to see a pathway for these new products to become 10% of sales over time.

最後，這一切都將以我們致力於維持強勁的資本回報率和保守的資本結構為基礎，這將繼續成為指導我們策略的核心。本季新產品銷售總額為 1.06 億美元，佔銷售額的 6.7%。我們繼續看到這些新產品隨著時間的推移佔銷售額的 10%。

We are seeing momentum across the portfolio and are excited about these products' growth potential and margin opportunities over time. A good example of this is our proprietary mineral-based Surestone Technology. At the recent IBS Trade Show in Las Vegas, we launched a new line of decking boards featuring Surestone Technology. We also introduced our Surestone-based trim offerings, which will be released in late 2025.

我們看到整個產品組合都呈現出良好的發展勢頭，並對這些產品未來的成長潛力和利潤機會感到興奮。我們專有的基於礦物的 Surestone 技術就是一個很好的例子。在最近於拉斯維加斯舉行的 IBS 貿易展上，我們推出了採用 Surestone 技術的新型裝飾板系列。我們也推出了基於 Surestone 的裝飾產品，將於 2025 年底發布。

Last quarter, we shared that we have secured 1,500 new retail locations for 2025, and we are also actively adding stocking relationships with traditional two-step building products distributors. The new products are shipping to retailers and distributors as we speak.

上個季度，我們分享了我們已為 2025 年確保了 1,500 個新零售點，並且我們還在積極與傳統的兩步建築產品分銷商建立庫存關係。目前，新產品正在運送給零售商和分銷商。

To meet this demand, we continue to invest in our existing manufacturing capabilities to drive increased productivity and throughput. We are also actively expanding the geographic reach of our manufacturing capacity. In the quarter, we announced plans for a new decorators facility in the Northeast. All of this is part of our capital expansion plan for decorators, which provides the foundation for our plans to double market share over time.

為了滿足這項需求，我們繼續投資現有的製造能力，以提高生產力和產量。我們也積極擴大製造能力的地理覆蓋範圍。本季度，我們宣布了在東北地區建立新裝飾工廠的計劃。所有這些都是我們針對裝飾商的資本擴張計劃的一部分，這為我們隨著時間的推移使市場份額翻一番的計劃奠定了基礎。

In addition to our investments and decorators and retail more broadly, we have identified growth runways across each of our other business units that meet our high return threshold. We remain committed to our plan to invest $1 billion in growth capital investments over the next five years, but also maintain the flexibility to pivot some of that capital earmarked for greenfield operations to M&A should the right opportunities arise.

除了我們的投資以及更廣泛的裝飾和零售之外，我們還在每個其他業務部門中確定了符合我們高回報門檻的成長跑道。我們仍然致力於在未來五年內投資 10 億美元用於成長資本投資的計劃，但同時也保持靈活性，如果出現合適的機會，我們會將部分用於綠地運營的資本轉向併購。

We would prefer M&A to greenfield expansion in most cases, but only when valuations are in line with our expectations for return.

在大多數情況下，我們傾向於併購而不是綠地擴張，但前提是估值符合我們的回報預期。

Our goal with all investments is to expand our growth runways in new and value add products, strengthen our core portfolio, and improve our cost position and become more efficient across all layers of the organization.

我們所有投資的目標是擴大新產品和加值產品的成長空間，加強我們的核心產品組合，改善我們的成本狀況，並提高組織各個層面的效率。

All of these projects will be accretive to margins either by improving product mix or by lowering our manufacturing costs. We will continue to invest heavily in automation, technology, new product development, and capacity expansion that will leave us better positioned to drive margins and create shareholder value.

所有這些項目都將透過改善產品組合或降低製造成本來增加利潤。我們將繼續大力投資自動化、技術、新產品開發和產能擴張，這將使我們更好地提高利潤率並創造股東價值。

In all cases, any investments are expected to meet our internal return on capital threshold. M&A has always been an important part of UFP's history and a key part of our growth strategy, and as I mentioned a moment ago, we are willing to pivot more towards acquisition growth versus greenfield growth should the right opportunity arise.

在所有情況下，任何投資都應達到我們的內部資本回報門檻。併購一直是 UFP 歷史的重要組成部分，也是我們成長策略的關鍵部分，正如我剛才提到的，如果有合適的機會，我們願意更多地轉向收購成長而不是綠地成長。

Our M&A team continues to be extremely active, and we would say our pipeline is better today than at any point over the past few years. I think some of this is that the expectations between what buyers want and what sellers are willing to pay has rationalized as earnings are normalizing post COVID.

我們的併購團隊繼續非常活躍，我們可以說我們今天的管道比過去幾年的任何時候都要好。我認為部分原因是，隨著新冠疫情後收益逐漸正常化，買家的需求和賣家願意支付的價格之間的預期已經合理化。

Some of the recent macro uncertainties have likely contributed to this uptick in activity as well, given the fragmented nature in many of our markets. Regardless, we want to grow sales aggressively, but we will be mindful in that we are growing the right sales that drive higher margins and support our strong return profile.

鑑於我們許多市場的分散性，最近的一些宏觀不確定性可能也導致了活動的增加。無論如何，我們都希望積極增加銷售額，但我們會注意增加正確的銷售額，以推動更高的利潤率並支持我們強勁的回報狀況。

We also view share repurchases as an attractive way to return capital to shareholders and have been very active through April. With the additional $100 million authorization provided by our Board, we anticipate remaining active throughout Q2 as long as the price is below our target.

我們也認為股票回購是向股東返還資本的一種有吸引力的方式，並且在整個四月都非常活躍。在我們的董事會授權的額外 1 億美元的幫助下，只要價格低於我們的目標，我們預計整個第二季度我們都會保持活躍。

Turning quickly to our segments, retail sales declined 3% in the quarter compared to a year ago. Results were largely driven by 4% decline in volume. With 1% positive pricing helping offset much of the quarter decline was due to a customer shift within our decorator's business, which will become less impactful as the year progresses. With new product placement and recent distribution winds taking place throughout the spring season, we expect this business will help offset soft demand.

快速轉向我們的細分市場，本季零售額與去年同期相比下降了 3%。業績下滑的主因是銷量下降了 4%。1% 的正向定價​​有助於抵消本季大部分的下滑，這是由於我們裝飾業務的客戶轉變造成的，隨著時間的推移，這種影響將變得越來越小。隨著新產品的投放和近期整個春季的分銷風潮，我們預計這項業務將有助於抵消疲軟的需求。

We expect the Deckorators business will build momentum through the rest of the year as more stores begin to stock our surest on decking. Profitability should improve also as our capital investments not only expand our capacity but allow us to produce more efficiently.

我們預計，隨著越來越多的商店開始儲備我們最可靠的甲板產品，Deckorators 業務將在今年剩餘時間內保持強勁發展勢頭。獲利能力也應該會提高，因為我們的資本投資不僅擴大了我們的產能，而且使我們能夠更有效率地生產。

On the ProWood side, recent price increases should help offset material cost increases. Packaging unit sales declined 2% in total and 3% excluding the acquisition of pallet manufacturer, C&L Wood Products this past December. Weaker sales in our structural packaging and PalletOne businesses drove the declines. Pricing remains competitive, and recent increases in material costs have pressured margins further. We've said on calls in the past that if we aren't at the bottom, we continue to think we're getting close.

從 ProWood 方面來看，近期的價格上漲應該有助於抵銷材料成本的上漲。包裝單位銷售額整體下降了 2%，不包括去年 12 月收購托盤製造商 C&L Wood Products 的銷售額下降了 3%。我們的結構包裝和 PalletOne 業務的銷售疲軟導致了銷量下滑。定價仍然具有競爭力，而近期材料成本的上漲進一步壓縮了利潤率。我們過去在電話會議上說過，如果我們還沒有觸底，我們仍然認為我們已經接近了。

Construction sales were largely unchanged from year ago levels. A 3% boost in volumes for the business unit was offset by a similar decline in price in the quarter. Strength in our factory built business was largely offset by softness in our site built business. This trend has shown up in our results for the past several quarters, and with a downgraded housing outlook and many home builders lowering their full year forecasts, we expect this dynamic will remain through the balance of the year.

建築銷售額與去年同期相比基本沒有變化。該業務部門銷量成長 3%，但本季價格出現類似下降，抵消了這一成長。我們工廠建造業務的強勁表現在很大程度上被現場建造業務的疲軟表現所抵消。這一趨勢已在我們過去幾季的業績中顯現出來，隨著住房前景下調以及許多房屋建築商下調全年預測，我們預計這種動態將持續到今年年底。

Turning to our outlook, we expect the business conditions that impacted our first quarter results will carry over for the remainder of 2025.

展望未來，我們預計影響第一季業績的商業環境將持續到 2025 年剩餘時間。

News around tariffs on Canadian lumber has only created additional headwinds. The 90 day reprieve on any tariffs has helped the overall lumber market remain relatively stable, but the overall environment is fluid, and if something changes, the industry would most likely see some levels of inflation as prices are ultimately passed along to the consumer.

對加拿大木材徵收關稅的消息只會帶來更多阻力。90天的關稅暫緩措施幫助整個木材市場保持相對穩定，但整體環境是不斷變化的，如果情況發生變化，該行業很可能會出現一定程度的通貨膨脹，因為價格最終會轉嫁給消費者。

From an impact standpoint, we'd note that we import less than 15% of the lumber we purchase from Canada. We'd also note that Southern Yellow Pine is domestically produced and represents over 70% of our purchases of lumber.

從影響的角度來看，我們注意到我們從加拿大進口的木材不到 15%。我們也注意到，南方黃松是國產的，占我們木材採購量的 70% 以上。

Historically, a tighter lumber market has allowed us to have better availability of product, including low grade for packaging applications as a result of our scale. This has allowed us to improve our market share and lower costs. Along those same lines, softer patches in the economy have allowed UFP to use our scale, strong financial position, and lower cost manufacturing position to gain share in the marketplace.

從歷史上看，由於我們的規模較大，木材市場較為緊張，因此我們可以提供更好的產品，包括用於包裝應用的低等級產品。這使我們能夠提高市場份額並降低成本。同樣，經濟疲軟時期也使得 UFP 能夠利用我們的規模、強大的財務狀況和低成本製造地位來獲得市場份額。

While all of this uncertainty is contributing to a lack of visibility beyond the first half of 2025, regardless of the outcome, we remain confident in our ability to navigate any potential tariff impacts. Longer term, we are well-positioned to take advantage of favorable demographic trends in an underbuilt housing market.

儘管所有這些不確定性導致 2025 年上半年之後的情況缺乏可預見性，但無論結果如何，我們仍然有信心能夠應對任何潛在的關稅影響。從長遠來看，我們有能力利用房屋建設不足的市場中有利的人口趨勢。

We plan to position our business to take market share as well. We remain committed to our long-term targets, which includes 7% to 10% unit growth, 12.5% EBITDA margins, all while maintaining our strong return on capital profile and conservative capital structure. The timeline to achieve these targets is pushed out due to the current economic environment, but the goals remain unchanged.

我們計劃定位我們的業務以佔領市場份額。我們將繼續致力於我們的長期目標，包括 7% 至 10% 的單位成長、12.5% 的 EBITDA 利潤率，同時保持強勁的資本回報率和保守的資本結構。由於當前的經濟環境，實現這些目標的時間表被推遲，但目標保持不變。

Before I turn the call over to Mike, I want to thank our 15,000-plus employees for their hard work and dedication. The uncertain macro environment will undoubtedly pass, and it is with their effort that will emerge from this period a much stronger and more profitable company.

在將電話轉給麥克之前，我想感謝我們 15,000 多名員工的辛勤工作和奉獻精神。不確定的宏觀環境無疑會過去，在他們的努力下，公司將度過這段時期，變得更加強大，盈利能力更強。

Thank you, Will. Our consolidated results this quarter include a 3% decline in sales to $1.6 billion, driven by a 2% reduction in volumes and a 1% reduction in selling prices. The decline in selling prices primarily resulted from a slower start to the year and weaker demand, which led to more competitive pricing in our construction and packaging segments. The volume declines were primarily due to a seasonally weaker January and February across most business units.

謝謝你，威爾。本季我們的綜合業績包括銷售額下降 3% 至 16 億美元，原因是銷量下降 2% 且銷售價格下降 1%。銷售價格下降主要由於今年開局放緩和需求疲軟，導致我們的建築和包裝部門的定價更具競爭力。銷量下降主要是由於大多數業務部門 1 月和 2 月的季節性疲軟。

Lower volumes, pricing pressure, higher material costs, and a less favorable product mix weighed on profitability this quarter as adjusted EBITDA declined 21% to $142 million while our adjusted EBITDA margin fell to 8.9%. Even with these headwinds, our return on invested capital remained resilient at 15.5%, well above our weighted average cost of capital.

銷售下降、定價壓力、材料成本上升以及產品組合不佳對本季獲利能力造成影響，調整後的 EBITDA 下降 21% 至 1.42 億美元，而調整後的 EBITDA 利潤率則下降至 8.9%。即使面臨這些不利因素，我們的投資資本回報率仍保持 15.5% 的強勁水平，遠高於我們的加權平均資本成本。

We believe this highlights the strength of our business model and the efforts of our team, demonstrating the strong returns our business can achieve even when faced with more challenging market conditions. Our balance sheet continues to be a competitive advantage, by providing us with the flexibility to pursue our financial and strategic objectives to drive sustained returns and long term value, even in uncertain or challenging environments.

我們相信這凸顯了我們的商業模式的優勢和我們團隊的努力，證明了即使面臨更具挑戰性的市場條件，我們的業務也能獲得強勁的回報。我們的資產負債表繼續成為我們的競爭優勢，因為它為我們提供了靈活性，即使在不確定或充滿挑戰的環境中也能追求我們的財務和戰略目標，從而實現持續的回報和長期價值。

Moving on to our segments, sales in our retail segment were $607 million a 3% decline compared to last year due to a 4% decline in units partially offset by a 1% increase in price. The unit decrease was comprised of a 3% decline in volume with Big Box customers, while our volume with independent retailers declined by 7%.

再來看看我們的分部，我們零售分部的銷售額為 6.07 億美元，與去年相比下降了 3%，這是因為銷量下降了 4%，但價格上漲了 1%，部分抵消了這一影響。單位減少包括與大型商場客戶的銷售量下降 3%，而與獨立零售商的銷售量下降 7%。

By business unit, we experienced a 3% decrease in ProWood and an 11% decline in Deckorators. The majority of the Deckorators decline was driven by a customer change that temporarily reduced volumes as we transitioned business. This was primarily experienced in our railing and wood plastic composite decking categories as our sales of these products dropped 26% while our sales of sugar stone decking increased 24%.

按業務部門劃分，ProWood 下降了 3%，Deckorators 下降了 11%。Deckorators 銷售下滑的主要原因是客戶變化，在我們轉型業務時導致銷售暫時減少。這主要體現在我們的欄桿和木塑複合地板類別上，因為這些產品的銷售額下降了 26%，而糖石地板的銷售額增加了 24%。

Surestone was more than 50% of our total composite decking sales this quarter and will continue to benefit from the Summit product launch, expanded distribution, new and more efficient capacity coming online, and our increased marketing efforts to build the Surestone brand.

本季度，Surestone 的銷售額占我們複合地板總銷售額的 50% 以上，並將繼續受益於 Summit 產品的推出、分銷範圍的擴大、新的更高效的產能上線，以及我們為打造 Surestone 品牌而加大的營銷力度。

Our year-over-year gross profits and gross margins declined in retail due to the decrease in volume and unfavorable manufacturing variances, given the slow start to the year, as well as higher material costs on certain products sold with a fixed price.

由於今年開局緩慢，銷量下降和製造差異不利，以及以固定價格銷售的某些產品的材料成本較高，我們的零售毛利和毛利率同比下降。

However, we're optimistic our margins will improve in future quarters given recent price increases implemented to offset these higher costs and benefits for more efficient manufacturing as a result of capital investments made to produce our Surestone product.

然而，我們樂觀地認為，由於最近實施的價格上漲抵消了這些更高的成本，並且由於對生產 Surestone 產品的資本投資而實現了更高效的製造，我們的利潤率在未來幾個季度將會提高。

Our operating profits in retail declined by roughly $20 million as a result of the decline in gross profit as we were able to hold SG&A flat as an increase in decorators' advertising costs was offset by a decrease in bonus expense.

由於裝飾商廣告費用的增加被獎金支出的減少所抵消，我們能夠保持銷售、一般及行政費用 (SG&A) 持平，導致毛利下降，零售業務的營業利潤下降了約 2,000 萬美元。

Moving on to packaging, sales in this segment dropped 3% to $410 million, consisting of a 3% decrease in organic units and a 1% decrease in selling prices, partially offset by a 1% increase from the recently completed C&L Wood Products acquisition.

再來看包裝業務，該部門的銷售額下降 3% 至 4.1 億美元，其中有機單位下降 3%，銷售價格下降 1%，但最近完成的 C&L Wood Products 收購帶來的 1% 的增長部分抵消了這一影響。

Customer demand in this segment remains soft and the environment remains competitive, but we continue to gain share with key customers. As a result of soft demand, competitive headwinds, and an increase in material costs, our year over year gross profits dropped by $16 million for the quarter and gross margin declined by 316 basis points.

該領域的客戶需求仍然疲軟，競爭環境仍然激烈，但我們繼續從主要客戶那裡獲得份額。由於需求疲軟、競爭不利以及材料成本增加，我們本季的毛利年減了 1,600 萬美元，毛利率下降了 316 個基點。

The margin decline was also due to an unfavorable change in product mix this quarter as our largest and most profitable business unit, structural packaging, experienced the greatest decline in volume.

利潤率下降也是由於本季產品結構發生不利變化所造成的，因為我們最大、利潤最高的業務部門結構包裝的銷售下降幅度最大。

Operating profits in the packaging segment declined by almost $10 million to a total of $22 million for the quarter due to the decrease in gross profits offset by a $6 million decrease in SG&A, primarily due to lower bonus and sales incentives in our cost reduction efforts.

本季包裝部門的營業利潤下降了近 1,000 萬美元，至 2,200 萬美元，原因是毛利的下降被 600 萬美元的銷售、一般和行政費用的減少所抵消，這主要是由於我們為降低成本而減少了獎金和銷售獎勵。

Turning to construction, sales in this segment were largely flat at $516 million as a 3% decline in selling prices was substantially offset by a 3% increase in units.

談到建築業，該領域的銷售額基本上持平於 5.16 億美元，因為銷售價格下降 3% 被單位數量增加 3% 所抵消。

The increase in volume was due to a double digit increase in our factory build business and low single digit growth in both our commercial and concrete forming business units. These increases were partially offset by a mid-single digit decline in our site build business. The volume increase in our factory built unit was primarily due to an increase in industry production as this market continues to outperform.

銷量的成長是由於我們的工廠建設業務實現了兩位數的成長，以及商業和混凝土成型業務部門實現了低個位數的成長。這些成長被我們場地建設業務的中等個位數下降部分抵消。我們工廠建造單位產量的增加主要是由於該市場持續表現優異導致行業產量增加。

Selling prices were largely stable across the business with the exception of our site built unit. Gross profit for the segment decreased by 24 million year over year, with the gross margin down 448 basis points, driven by the decline in site built selling prices, higher material costs, and the less favorable product mix as site built comprised the lower percentage of our total sales.

除我們現場建造的單位外，整個業務的銷售價格基本上都很穩定。該部門的毛利年減 2,400 萬美元，毛利率下降 448 個基點，原因是現場建造銷售價格下降、材料成本上升，以及由於現場建造占我們總銷售額的比例較低，產品組合不太理想。

Our operating profits declined by $18 million to a total of $28 million for the quarter due to the decline in gross profit offset by a $6 million decrease in SG&A due to lower bonus and sales incentives and our cost reduction efforts.

由於毛利下降，本季我們的營業利潤下降了 1,800 萬美元，至 2,800 萬美元，但因獎金和銷售獎勵減少以及我們努力削減成本，銷售、一般及行政費用減少了 600 萬美元。

As we progress through this cycle, we're mindful of our cost structure and working to strike the right balance of making sure the company is appropriately sized relative to demand, while still investing in the resources needed to achieve our strategic long-term objectives for growth, product innovation, building brand awareness, and improving our efficiency through technology.

在這個週期中，我們隨時專注於我們的成本結構，努力實現適當的平衡，確保公司規模與需求相適應，同時仍投資於實現我們長期策略目標所需的資源，包括成長、產品創新、建立品牌知名度以及透過技術提高效率。

Our consolidated SG&A expenses declined $16 million for the quarter due to a $14 million decline in bonus and sales incentives and a $2 million decline in our core SG&A, which includes a $5 million increase in our Deckorators advertising costs to support the Surestone Summit product launch as we remain excited about the growth opportunity of this brand. Looking forward, we've targeted an annual run rate of IEA improvements from cost and capacity reductions of $60 million in 2026.

本季度，我們的綜合銷售、一般及行政費用下降了 1600 萬美元，原因是獎金和銷售獎勵減少了 1400 萬美元，核心銷售、一般及行政費用減少了 200 萬美元，其中包括 Deckorators 廣告費用增加了 500 萬美元，用於支持 Surestone Summit 產品的發布，因為我們仍然對該品牌的增長機會感到興奮。展望未來，我們的目標是到 2026 年，透過削減成本和產能來實現 IEA 改進的年運行率達到 6,000 萬美元。

Our plan for SG&A expenses this year, excluding highly variable sales and bonus incentives tied to profitability, remains at $565 million. This is flat when compared with 2024 and is comprised of $26 million of anticipated cost reductions, offset by $6 million of planned increases primarily associated with new greenfield operations, technology improvements, and product innovation, and a $20 million increase in our Deckorators advertising spend as we invest in building the Surestone brand.

我們今年的銷售、一般及行政費用計劃（SG&A）仍為 5.65 億美元，不包括與盈利能力掛鉤的波動很大的銷售額和獎金激勵。與 2024 年相比，這一數字持平，包括預期成本削減 2600 萬美元，但計劃增加 600 萬美元，主要與新的綠地運營、技術改進和產品創新有關，此外，由於我們投資打造 Surestone 品牌，Deckorators 廣告支出將增加 2000 萬美元。

We're also planning for current year bonus expense of 16% to 17% of pre-bonus operating profit, $27 million investing expense associated with prior year share grants. And sales incentives of about 3% of gross profit. In addition to SG&A cost reductions, we've taken actions to curtail capacity at locations that are not meeting our profitability targets. We are confident these actions will have a favorable impact on gross profits, totaling at least $15 million in 2025.

我們也計劃將本年度的獎金支出定為獎金前營業利潤的 16% 至 17%，以及與上一年股票贈與相關的 2,700 萬美元的投資支出。以及約佔毛利3%的銷售獎勵。除了降低銷售、一般和行政費用外，我們還採取措施削減未達到獲利目標的地區的產能。我們相信，這些措施將對毛利產生正面影響，到 2025 年毛利總額將至少達到 1,500 萬美元。

Based on the actions we've taken to date and opportunities for continued improvement, we're optimistic we will achieve our 2026 goal.

根據我們迄今為止採取的行動和持續改進的機會，我們對實現 2026 年目標充滿信心。

Moving on to our cash flow statement, our operating cash flow was a use of $109 million in the quarter compared to a use of $17 million last year, primarily due to our seasonal investment in that working capital, which was $55 million higher this year, as well as a decline in our net earnings and non-cash expenses which were $37 million lower. We expect the seasonal increase in that working capital of $239 million to be converted to cash by the end of Q3.

再來看看我們的現金流量表，本季我們的營運現金流為 1.09 億美元，而去年同期為 1,700 萬美元，這主要是因為我們對營運資本的季節性投資今年增加了 5,500 萬美元，以及淨利潤和非現金支出的下降，減少了 3,700 萬美元。我們預計，該營運資本的季節性增加量 2.39 億美元將在第三季末轉換為現金。

Our investing activities included $67 million in capital expenditures, comprising $19 million in maintenance CapEx and $48 million of expansionary CapEx. As a reminder, our expansionary investments are primarily focused on three key areas.

我們的投資活動包括 6,700 萬美元的資本支出，其中包括 1,900 萬美元的維護資本支出和 4,800 萬美元的擴張資本支出。提醒一下，我們的擴張性投資主要集中在三個關鍵領域。

Expanding our capacity to manufacture new and value added products, geographic expansion in core, higher margin businesses, and achieving efficiencies through automation. Finally, our financing activities primarily consisted of returning capital to shareholders through almost [$21 million of dividends and $70 million] of share repurchases during the quarter.

擴大我們生產新產品和增值產品的能力，擴大核心高利潤業務的地理擴張，並透過自動化提高效率。最後，我們的融資活動主要包括透過本季近 [2,100 萬美元的股利和 7,000 萬美元] 的股票回購向股東返還資本。

Turning to our capital structure and resources, we continue to have a strong balance sheet with nearly $905 million in surplus cash, while our total liquidity, including cash and amounts available to borrow under our long-term lending agreements, is $2.2 billion at quarter end. With respect to capital allocation, we remain committed to a balanced and return driven approach.

談到我們的資本結構和資源，我們繼續擁有強勁的資產負債表，擁有近 9.05 億美元的盈餘現金，而我們的總流動資金（包括現金和根據長期貸款協議可藉入的金額）在季度末為 22 億美元。在資本配置方面，我們仍然致力於平衡和回報驅動的方法。

As we've discussed, our highest priority for capital allocation is to drive organic and inorganic growth that results in higher margins and returns. Our strategy also includes growing our dividends in line with our long-term anticipated free cash flow growth, repurchasing our stock to offset dilution from share-based compensation plans, and opportunistically buying back more stock when we believe it's trading at a discounted value.

正如我們所討論的，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率和回報。我們的策略還包括根據長期預期的自由現金流成長增加股息，回購股票以抵銷股權激勵計畫的稀釋，以及在我們認為股票交易價格處於折扣價時適時回購更多股票。

With these points in mind, our Board approved a quarterly dividend of $0.35 a share to be paid in June, representing a 6% increase from the rate paid a year ago.

考慮到這些因素，我們的董事會批准在 6 月支付每股 0.35 美元的季度股息，比去年同期的股息增加 6%。

On April 23, our Board amended and increased our share repurchase authorization from $200 million to $300 million. The authorization expires on July 31, 2025. During the first quarter, we repurchased 649,000 shares for $70 million. And so far in April we've repurchased over 1 million shares for $107 million. Our remaining authorization through the end of July is $122 million.

4 月 23 日，董事會修改了股票回購授權，將回購金額從 2 億美元增加到 3 億美元。該授權將於2025年7月31日到期。第一季度，我們以 7,000 萬美元回購了 649,000 股。截至目前，四月我們已經回購了超過 100 萬股，價值 1.07 億美元。截至 7 月底，我們的剩餘授權金額為 1.22 億美元。

Regarding capital expenditures, we currently plan to approve new CapEx projects totaling $300 million to $350 million for the year.

關於資本支出，我們目前計劃今年批准總額為 3 億至 3.5 億美元的新資本支出項目。

Through the end of March, we've already approved $167 million, with another $87 million pending approval. Large projects this year include expanding our capacity to produce our Surestone product, our protective packaging footprint, and our site built presence in Utah.

截至三月底，我們已經批准了 1.67 億美元，另有 8,700 萬美元待批准。今年的大型項目包括擴大我們的 Surestone 產品生產能力、我們的保護性包裝足跡以及我們在猶他州的現場建設。

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. As we pursue these opportunities, we'll remain disciplined on valuation.

最後，我們將繼續尋求一系列具有強大策略契合度的併購機會，同時提供更高的利潤、回報和成長潛力。當我們尋求這些機會時，我們將保持對估值的嚴謹態度。

I'll finish with comments about our outlook. On our last call, we got to expectations for modest declines in demand and pricing in each segment through the first half of the year. It stopped short of providing context for the full year, given the uncertainty in the market. At this point, visibility into the second half of the year has become even more challenged. As Will indicated earlier, we saw revenue and profit momentum improve through the quarter.

最後，我將對我們的前景發表一些評論。在我們上次電話會議上，我們預計今年上半年各個細分市場的需求和價格將出現小幅下降。鑑於市場的不確定性，它未能提供全年的背景資訊。此時，下半年的可預見性已變得更具挑戰性。正如威爾之前指出的，我們看到本季的收入和利潤勢頭有所改善。

Still, many of the same market dynamics and uncertainties remain in place, so we continue to approach the second half of the year with a sense of caution. The prospect for tariffs only adds more uncertainty and increases the likelihood of inflation and demand challenges going forward.

然而，許多相同的市場動態和不確定性仍然存在，因此我們繼續以謹慎的態度對待下半年。關稅前景只會增加更多的不確定性，並增加未來通膨和需求挑戰的可能性。

Against this backdrop, we anticipate demand will remain slightly down in each of our segments through the remainder of the year. While we believe demand in factory built will increase, we believe it will be offset by declines in site build and the other business units in our construction segment.

在此背景下，我們預計今年剩餘時間內各部門的需求仍將略有下降。雖然我們相信工廠建設的需求將會增加，但我們認為它將被現場建設和建築部門其他業務部門的下滑所抵消。

As a result of the soft demand environment, we anticipate competitive pricing will continue. Positively, we anticipate market share gains in most business units will help mitigate the decline in demand and benefit the company going forward.

由於需求環境疲軟，我們預期競爭性定價將會持續下去。積極的一面是，我們預計大多數業務部門的市場份額成長將有助於緩解需求下降並使公司未來受益。

In the current environment, we'll continue to focus on what's in our control to manage through these more challenging conditions in the short term, reducing costs, eliminating excess capacity, and divesting underperforming assets, while positioning ourselves for eventual improvements in market demand and executing our strategies to drive long-term growth and margin improvements. With that, we'll open it up for questions.

在當前環境下，我們將繼續專注於我們能夠控制的事項，以便在短期內應對這些更具挑戰性的條件，降低成本，消除過剩產能，剝離表現不佳的資產，同時為最終改善市場需求做好準備，並執行我們的策略來推動長期增長和利潤率的提高。接下來，我們將開始回答問題。

(Operator Instructions) Kurt Yinger, D.A. Davidson.

（操作員指示）Kurt Yinger，D.A. Davidson。

Just on the outlook, it seems like, some of the caution around demand is prudent at this stage. I'm curious when you talk about kind of the competitive dynamics and pricing pressures persisting, is the expectation that maybe those get incrementally more challenging kind of as the year progresses, or just that kind of the current set of challenges remains but is kind of stable sequentially over the next few quarters?

僅從前景來看，目前對需求的一些謹慎似乎是謹慎的。我很好奇，當您談到持續存在的競爭動態和定價壓力時，是否預計隨著時間的推移，這些挑戰會逐漸變得更具挑戰性，或者只是當前的挑戰仍然存在，但在接下來的幾個季度中會保持穩定？

I guess I'll jump in on that one. Kurt, at this point, we're expecting that the current challenges to continue in future quarters. When I look at the packaging segment, margins there are up a little bit from Q4, which you'd expect with volumes improving a little bit, but it seems like margins there if more or less stabilized.

我想我會加入這個。庫爾特，目前，我們預計當前的挑戰將在未來幾季繼續存在。當我查看包裝部分時，我發現那裡的利潤率比第四季度略有上升，這是可以預料的，因為銷量會略有改善，但那裡的利潤率似乎或多或少保持了穩定。

The challenge there though is that we have had some cost increase that has been difficult to pass along fully. On the construction side, the site built area in particular has been more challenged, and see you saw a big step down in the construction margins driven by pricing challenges in site build.

但挑戰在於我們的成本增加，而且很難完全轉嫁。在建築方面，特別是現場建設領域面臨的挑戰更大，並且您會看到由於現場建設的定價挑戰導致建築利潤率大幅下降。

I would expect that those to continue for the balance of the year and like packaging we've experienced cost increases on the material side of things, lumber in particular, and it'll be challenging, I think, in a softer demand environment to pass those maybe fully along to builders.

我預計這種趨勢將持續到今年年底，就像包裝一樣，我們在材料方面經歷了成本的上漲，特別是木材，我認為，在需求疲軟的環境下，將這些成本完全轉嫁給建築商將是一個挑戰。

So I think those areas, I think we expect them to continue the trend we saw in Q1. Positively though, I think in retail it's in a completely different story. I think you see you're going to see benefits on the Deckorators side from the more efficient capacity coming online in Q2.

所以我認為這些領域，我們預計它們將延續我們在第一季看到的趨勢。不過從正面的角度來看，我認為零售業的情況完全不同。我認為，您會看到 Deckorators 方面從第二季上線的更有效率產能中獲益。

And then the cost increases we've seen on some of the fixed price products we've had success in implementing price increases as an as an offset. And so those weren't fully enacted in in Q1, so we expect to get the benefit of those more or less going forward for the balance of the year. So more optimistic on the on the retail side, bouncing up and more or less continuing in the tougher environment for the other two segments.

然後，我們看到一些固定價格產品的成本增加，我們成功地實施了價格上漲作為抵銷。因此，這些措施在第一季尚未完全實施，因此我們預計在今年餘下的時間裡或多或少會從中受益。因此，零售方面更加樂觀，在其他兩個部門面臨更嚴峻的環境中，零售業將出現反彈，並且或多或少能夠繼續保持成長。

Yeah, well said, Mike. Nothing to add there.

是的，說得好，麥克。沒什麼好補充的。

That's great and it kind of dovetails into my next question that you referenced around lumber prices, right? And historically, the business has done a great job kind of managing fluctuations there, I think, with the variable versus fixed price, you kind of have a natural hedge, but it does seem like a unique environment in terms of demand soft competitive pressures.

這很好，這和您提到的我下一個關於木材價格的問題很吻合，對嗎？從歷史上看，該企業在管理波動方面做得很好，我認為，透過浮動價格與固定價格，你有一種自然的對沖，但就需求軟競爭壓力而言，這似乎是一個獨特的環境。

But at the same time lumber's been inflationary, I guess how do you balance the desire to pass that through and not see that kind of price cod spread narrow versus, the desire to keep the plants busy and the recognition that there is, some cost absorption if you walk away, from business at this stage I guess how are you kind of managing that balance in the current environment?

但與此同時，木材價格一直處於通貨膨脹狀態，我想，您如何在將通貨膨脹轉嫁給通貨膨脹的願望和不讓價差縮小的願望之間取得平衡，以及希望工廠保持繁忙的願望和認識到如果您放棄這個業務，就會有一些成本吸收，我想，您如何在當前環境下管理這種平衡？

Yeah, that's a really good question, and what I would tell you is we do not want to give up market share. At the same time, we're managing those margins. We think we can mitigate most of those increases, but we want to retain and grow market share as Mike described in his script.

是的，這是一個非常好的問題，我想告訴你的是，我們不想放棄市場佔有率。同時，我們正在管理這些利潤。我們認為我們可以減輕大部分成長，但我們希望保持並增加市場份額，正如麥克在他的腳本中所描述的那樣。

So we're going to continue to fight that. We know that packaging and construction will be more difficult than retail, but certainly don't want to give up market share.

因此我們將繼續抗爭。我們知道包裝和施工會比零售更困難，但肯定不想放棄市場份額。

And the team is well aware of you know what market pricing is and what their variable costs are so they you know they're making good business decisions every day about market share.

而且團隊非常清楚市場定價和變動成本，因此他們每天都在就市場份額做出正確的商業決策。

Absolutely.

絕對地。

Got it okay and then just lastly on Deckorators. You referenced some of the timing dynamics that that impacted that this quarter is that something that you expect to kind of be fully in the rearview as we move into Q2. And all considered I guess how are you thinking about Deckorators growth this year? Is it somewhat of a transitional year and as those new retail winds ramp, maybe 2026 we're talking about growth, or can we get to year over year kind of sales growth this year even with some of those timing dynamics?

好的，最後是 Deckorators。您提到了一些影響本季的時間動態，您預計隨著我們進入第二季度，這些影響將會完全顯現出來。綜合考慮所有這些因素，我猜您認為 Deckorators 今年的發展前景如何？這是否是一個過渡年？隨著新零售風潮的興起，也許 2026 年我們談論的是成長，或者即使存在一些時間動態，我們今年能否實現同比增長？

Yeah, so, certainly timing in the first quarter hit us Q2. We're about 30% of the way through that load in that we talked about in the last quarter call the 1,500-plus stores, the Surestone product. So you'll see that really taking place in Q2. We believe by the end of the year we'll actually have gains over 2024 and volume.

是的，所以，第一季的時間安排肯定會對第二季產生影響。我們已經完成了上個季度談到的 1,500 多家商店的 Surestone 產品訂單的 30% 左右。所以你會看到這在第二季度真正發生。我們相信，到今年年底，我們的銷量將比 2024 年有所成長。

And the secondary piece that I would add to that, the margin piece on the Deckorators side, we didn't really realize the benefits of a lot of that capital expenditure piece, and in fact it probably hindered us in Q1 and the load in as we're still working through CapEx improvements, a lot of disruption at the plant that also will take place in Q2. That'll be behind us. So we believe the second half of the year will be really good.

我要補充的第二點是 Deckorators 方面的利潤部分，我們並沒有真正意識到大量資本支出帶來的好處，事實上，它可能阻礙了我們在第一季的運營，因為我們仍在努力改進資本支出，工廠的許多中斷也將在第二季度發生。那已經是過去的事了。因此我們相信下半年將會非常好。

Awesome thank you appreciate the color.

太棒了，謝謝你欣賞這個顏色。

Reuben Garner, Benchmark.

魯本·加納，基準。

Just to follow up on that Deckorators comment, just to be clear, are you fully missing business with one retailer and only partially way through the load on the other side, and that's why there's a volume headwind. How do we think about that or is there still headwinds to come? I know you've got a lot of moving pieces there.

只是為了跟進 Deckorators 的評論，只是為了清楚起見，您是否完全錯過了與一家零售商的業務，而只部分錯過了另一家零售商的業務，這就是為什麼會出現銷量逆風。我們該如何看待這個問題？或者未來還會遇到阻力？我知道你那裡有很多活動件。

No real headwinds to come. You described it well. It's just transition period, so I mean that's for the most part behind us and you'll see that really changing Q2.

未來不會出現真正的逆風。你描述的很好。這只是過渡期，所以我的意思是這基本上已經過去了，你會看到第二季確實發生了變化。

Okay, and then a longer term question on decorators and the capacity you've added. Can you update us on kind of what the, what capacity you will have after this latest round of announcements in terms of revenue opportunity and how that kind of compares to what revenue you did in 2024 in Deckorators?

好的，然後是關於裝飾器和您添加的容量的長期問題。您能否向我們介紹一下，在最新一輪公告之後，您在收入機會方面將擁有什麼樣的能力，以及與您在 2024 年 Deckorators 的收入相比如何？

Yeah, there's three parts to the capacity increase, I think, for Deckorators, Reuben. It's -- there's about 100 million I'd say in capacity that's more recently added at our Selma plant. There's another 100 million that will come into play later this year from a further expansion there. And then we have the buffalo plant, which we're really excited about. This should be fully operational early next year.

是的，我認為對於 Deckorators 來說，容量提升包括三個部分，Reuben。我認為，我們塞爾瑪工廠最近新增的產能約為 1 億。今年晚些時候，還將透過進一步擴張投入 1 億美元。然後我們有了水牛工廠，我們對此感到非常興奮。該舉措將於明年年初全面投入營運。

So the two expansions at Selma again 100 million each, and then the Buffalo expansion gives us the ability to get to that goal, that five year goal of doubling our market share, but it also allows us to look at new products, manufacturing new products, the term product, for example, that you saw at IBS.

因此，塞爾瑪的兩次擴張分別增加了 1 億美元，然後布法羅的擴張使我們有能力實現這一目標，即在五年內將我們的市場份額翻一番，但這也使我們能夠研究新產品、製造新產品，例如您在 IBS 看到的術語產品。

So, Mike, just to be clear, I mean, does that imply that you're more than doubling your capacity? I assume there's market growth baked in addition to doubling your market share, you've got a growing market over the next five years. Am I thinking about that the right way, or would you need incremental capacity additions to get to that goal?

所以，麥克，只是為了清楚起見，我的意思是，這是否意味著你的產能增加了一倍以上？我認為，除了市佔率翻倍之外，市場還將實現成長，未來五年你的市場還會持續成長。我這樣想對嗎？或者您需要增加容量才能實現該目標？

Oh, you're exactly right, Ruben.

哦，你說得完全正確，魯本。

Okay, and then a follow up on the competitive pricing comments you made, I guess specifically in site built you know, I see -- I want to be clear, so this has gone on for a few quarters now. Is your expectation that you'll still have year over year headwinds in the second half, meaning, it's kind of sequentially getting worse, at this point, or have you seen a stabilization and pricing there and we're just not anniversarying the start of it yet?

好的，然後跟進您提出的競爭性定價評論，我想特別是在網站建設中，您知道，我明白 - 我想清楚，所以這種情況已經持續了幾個季度。您是否預計下半年仍將面臨同比逆風，也就是說，目前情況會逐漸惡化，或者您是否已經看到價格趨於穩定，只是還沒有迎來週年紀念日？

Visibility is tough, Reuben. There's a significant step down from Q4 to Q1. Obviously you can see that in the margin, for construction and that's really driven by site built. We're expecting at this point that, that trend continues forward. So I think this is a time when it, seasonality, we've always encouraged you to look at, year over year, when looking at modeling.

能見度很差，魯本。從第四季到第一季有顯著的下降。顯然，您可以在利潤中看到這一點，對於建築而言，這實際上是由現場建造所驅動的。我們目前預計，這一趨勢將持續下去。所以我認為這是一個季節性的時期，我們總是鼓勵你在觀察模型時逐年觀察。

But I think this is a time where cost and price trends really kind of lend itself to looking at the sequential trends as well. And I think going from Q4 to Q1 and seeing that that adverse price trend and the and the cost trend as well, I think you want to look at carrying those forward with respect to, whether or not we found the bottom I think that's, tough to say. I mean reading through what your question is, visibility is just too tough to be able to say I think right now.

但我認為，此時成本和價格趨勢確實也適合觀察連續趨勢。我認為從第四季度到第一季度，看到不利的價格趨勢和成本趨勢，我想你想看看這些趨勢是否已經觸底，我認為這很難說。我的意思是，讀完你的問題後，我認為現在能見度太低，無法說出我的想法。

No, that's really helpful, Mike. I appreciate it. Thanks guys and good luck. Thanks.

不，這真的很有幫助，麥克。我很感激。謝謝大家，祝你好運。謝謝。

Ketan Mamtora, BMO Capital Markets.

Ketan Mamtora，BMO 資本市場。

Coming back to Deckorators, is there any way to sort of, just rough order of magnitude, the EBITDA impact in Q1, from this customer shift that we are talking about in retail, is there any way to for us to sort of just think about that?

回到 Deckorators，有沒有什麼方法可以大致估算出第一季 EBITDA 受到的影響，就我們討論的零售業客戶轉變而言，有沒有什麼方法可以讓我們考慮一下？

Well, you have an 11% unit decline, and so I think you probably have maybe enough information to take the 11% unit decline and estimate an incremental impact there, but I think and I just throw in there as well that the manufacturing variance is associated with the decline in units were negative 2 million.

嗯，你的單位數量下降了 11%，所以我認為你可能有足夠的資訊來應對 11% 的單位數量下降並估計其增量影響，但我認為，我也要補充一點，製造差異與單位數量下降有關，為負 200 萬。

And so obviously -- you know, we're looking at those things obviously reversing going forward we think that the sales will pick back up, the manufacturing variances will be eliminated. And then back half of the year once that more efficient capacity comes online, margins will improve materially.

所以很明顯——你知道，我們正在考慮這些事情顯然會逆轉，我們認為銷售額將會回升，製造差異將會消除。然後，一旦更有效率的產能上線，下半年利潤率就會大幅提高。

Got it. So it's fair to say then this start of the 11% volume decline is all due to this volume shift and underlying market from what you guys see is kind of flattish at this point. Is that a fair way to think about it?

知道了。因此，可以公平地說，交易量開始下降 11% 完全是由於交易量的變化，而從你們看到的情況來看，基礎市場目前處於平穩狀態。這是一種公平的思考方式嗎？

Yeah, that's fair, absolutely.

是的，這絕對公平。

Got it. And then as we move from Q1 to Q2, just to sort of clarify. Should we assume that all of that, all of this shift has played out and as we move into Q2 we are kind of back to kind of more normal, sort of business trends, so there is some sort of this shift, still left to be played out in Q2?

知道了。然後，當我們從 Q1 轉到 Q2 時，只是為了澄清。我們是否應該假設所有這些轉變都已發生，隨著我們進入第二季度，我們將恢復到更正常的商業趨勢，因此這種轉變是否仍將在第二季度發生？

Yeah, Ketan, I think that's a fair assessment. I think by the time we have that load in, we see and realize the remainder of that store load in, you'll see more normalized levels and then the second half of the year I expect that to actually be up year over year.

是的，Ketan，我認為這是一個公平的評價。我認為，當我們完成這些加載後，我們會發現商店剩餘的加載量也隨之增加，您會看到更加正常的水平，然後我預計下半年加載量實際上會同比增長。

Understood. Okay, got it. And then just switching to M&A, I mean to your comments in the prepared remarks that the M&A pipeline is quite active, I'm curious as you see the world today, on one side you have kind of macroeconomic uncertainty which should, in some ways provide opportunity for you guys. Balance sheet is obviously very strong.

明白了。好的，明白了。然後轉到併購問題，我的意思是，正如您在準備好的評論中所言，併購管道非常活躍，我很好奇，您如何看待當今世界，一方面，您面臨著某種宏觀經濟不確定性，這在某種程度上應該為您提供機會。資產負債表顯然非常強勁。

Where do you see the most opportunity from a growth standpoint in in recent years we've seen kind of investment -- M&A investment in in packaging, but curious as you see the world today, where do you think there's most M&A growth opportunity?

從成長的角度來看，您認為哪裡是最有機會的？近年來，我們看到了包裝領域的投資—併購投資。但您好奇，看看當今世界，您認為哪裡是最有併購成長機會的？

Yeah, so I'll hit on that one a little bit. The exciting part for us is really we see opportunities existing in each of our BUs and runways. We've got a much more robust pipeline than we've had in the past, and so we see opportunities across the board and we're actively pursuing that.

是的，所以我會稍微談談這一點。對我們來說令人興奮的是，我們確實看到了每個業務部門和跑道中存在的機會。我們擁有比過去更強大的管道，因此我們看到了全方位的機遇，並且正在積極地追求這些機會。

If we see that we can't get something done in one, we can pivot to another, but we have a very defined pathway to growth. Which is also one of the reasons that you didn't see a greater share buyback number because we really want to weight that towards growth and we think we're going to have more opportunities going forward than we've had for the last few years.

如果我們發現在一個方面無法完成某件事，我們可以轉向另一個方面，但我們有一個非常明確的成長路徑。這也是您沒有看到更大股票回購數量的原因之一，因為我們確實希望將其重點放在成長上，並且我們認為未來我們將擁有比過去幾年更多的機會。

Got it. And Will is the preference still for tuck-in style M&A, or would you also be open to something larger if the right opportunity were to come?

知道了。威爾，您仍然傾向於小型併購嗎？或者如果有合適的機會，您是否也願意接受更大規模的併購？

Both tuck-ins is just a part of what we've done. We would certainly look at larger transactions Pallet one and Spartanburg and Sunbelt transactions might be a few to reference that are examples of larger transactions we've had a lot of success with. I think when it comes to larger transactions, you can take comfort from the fact that we're going to be very disciplined on valuation. We're going to be very disciplined on capital structure. And we're going to stay, close to the core in what we know.

這兩種做法只是我們所做工作的一部分。我們當然會考慮更大的交易，Pallet one、Spartanburg 和 Sunbelt 交易可能是一些可以參考的大型交易的例子，這些交易是我們取得很大成功的。我認為，當涉及較大的交易時，您可以放心，我們將在估值方面非常嚴格。我們將嚴格控制資本結構。我們將繼續深入研究我們所了解的核心知識。

Perfect. That's all from me. Good luck.

完美的。我要說的就這些。祝你好運。

Kurt Yinger, D.A. Davidson. Your line is open.

庫爾特·英格、D.A.戴維森。您的線路已開通。

Just on ProWood, historically I believe that's kind of a pretty explicit price mechanism kind of tied to published market pricing. It sounds like there's a price increase maybe separate from that. So can you just help me understand guess what that price increase was, as well as maybe a little bit of a refresher on the fixed price products that would be under that kind of ProWood umbrella?

就 ProWood 而言，從歷史上看，我相信這是一個非常明確的價格機制，與已公佈的市場定價掛鉤。聽起來，價格可能還會上漲，但這還不算什麼。那麼，您能否幫我了解一下價格上漲的原因，以及稍微回顧一下 ProWood 旗下的固定價格產品？

So yeah, first of all, let me talk about that. So ProWood during the quarter following up on previous years we experienced some cost increases that it took a little time through the quarter to get passed along to customers and we were able to do that so that should be behind us as well and you'll see more normalized margins in that space as we move through Q2 and through the rest of the year.

是的，首先，讓我談談這個。因此，與前幾年的情況類似，在本季度，ProWood 的成本有所增加，這些成本需要一些時間才能在整個季度轉嫁給客戶，我們能夠做到這一點，因此這個問題應該已經過去了，隨著我們進入第二季度以及今年剩餘時間，您會看到該領域的利潤率更加正常化。

Between the fixed and variable pricing, there is a portion of the business that is fixed based on some of the more value added products that are, worked through the year, but most of the business that is, we'll call it more on the commodity side is directly tied to the market indicators and moves on a weekly basis. So we feel like most of that's behind us and more normalized margins going forward will be realized.

在固定定價和浮動定價之間，有一部分業務是根據全年生產的一些附加價值更高的產品而固定的，但大部分業務，我們稱之為商品方面的業務，直接與市場指標和每週變動掛鉤。因此，我們覺得大部分問題都已經過去，未來利潤率將會更加正常化。

Okay, that's great. And then just lastly on the two step expansions you referenced, clearly that should kind of support the growth in the retail business that you're seeing. How does that fit into the strategy in terms of maybe expanding share in the dealer channel, and does this maybe represent a shift in terms of your own strategy of what has historically been, more of a kind of self-distribution model?

好的，太好了。最後，關於您提到的兩步擴張，顯然這應該會支持您所看到的零售業務的成長。就擴大經銷商通路份額而言，這與策略有何關聯？這是否代表著你們策略的轉變，你們的策略一直以來都傾向於一種自我分銷模式？

No, really good question. It's actually both, it shows the value that's seen in our products and in the mix, and we continue to grow with traditional two-step distributors, but we continue to also grow internal, and it's one of the things we've talked about for the last few years.

不，這真是個好問題。實際上兩者兼而有之，它展示了我們的產品和產品組合的價值，我們繼續與傳統的兩步驟分銷商一起成長，但我們也繼續在內部發展，這是我們過去幾年一直在談論的事情之一。

It's actually one of the things that we've invested heavily in. To be able to utilize our existing facilities, to get product to the end customer, it's actually very healthy and gives us access to places that we might otherwise not be able to get to. So it's a long-term strategy for us. We'll continue to work both ways.

這其實是我們投入大量資金的項目之一。能夠利用我們現有的設施，將產品送到最終客戶手中，這實際上是非常健康的，並且使我們能夠進入原本無法到達的地方。所以這對我們來說是一個長期策略。我們將繼續雙向努力。

Great. Thank you; appreciate the color.

偉大的。謝謝；欣賞顏色。

James McCanless, Wedbush Securities.

韋德布希證券公司的詹姆斯麥坎利斯。

The first one I had if -- hey, so James Hardie has announced that they're going to be buying AZEK, assuming that deal is successful, what type of opportunities does that open up for Deckorators and for Surestone in the market, if you have a large one of the larger players, maybe going through a transition period.

我的第一個問題是——嘿，James Hardie 宣布他們將收購 AZEK，假設交易成功，這將為 Deckorators 和 Surestone 在市場上帶來什麼樣的機會，如果你有一個大型的參與者，也許會經歷一個過渡期。

Yeah, I look at that. We looked at that activity and obviously you got two really respected well operated companies, both with good brands, good products, and you know the best thing I could explain to you is really a carryover from the last question I answered, which is if anything I see potential disruption and two step distribution and really just gives us even more reason to invest heavily in our own ability to get product to market if it becomes more challenged and more leverage is placed there, but that's all I can really add there color.

是的，我看了。我們研究了這一活動，顯然你有兩家真正受人尊敬、運營良好的公司，它們都擁有優秀的品牌和優質的產品，而且你知道，我能向你解釋的最好的事情實際上是我回答的上一個問題的延續，那就是，如果有的話，我看到了潛在的中斷和兩步分銷，這實際上給了我們更多的理由，在市場面臨更多挑戰、更多的市場力量

Understood, and then my second question, can you talk about the concrete forming business and it sounds like the Trump administration is trying to pull back on some of the spending that that have been allocated through Jobs Act, etc. What do you -- are you seeing any cancellations there people slow walking business? What's going on with that, please?

明白了，然後我的第二個問題是，您能談談混凝土成型業務嗎？聽起來川普政府正試圖撤回通過《就業法案》等分配的一些支出。您是否看到有人取消了某些業務，導致業務進展緩慢？請問這是怎麼回事？

No, not really. We haven't really seen anything substantial in that space, and I would tell you that the value added products that we're able to create and put in the field, continue to gain market share, and so we don't really -- we haven't seen that or experienced it today.

不，不是真的。我們還沒有真正看到該領域的任何實質進展，我想告訴你，我們能夠創造並投入該領域的增值產品繼續獲得市場份額，所以我們實際上並沒有——我們今天還沒有看到或經歷過這種情況。

Okay, that's good to hear. And then I think you talked about ProWood and how you've been able to pass pricing through, are there any other commodity goods we need to be mindful of where you've been able to raise price along normal contract lines and should help on the margin side?

好的，很高興聽到這個消息。然後我想您談到了 ProWood 以及您如何能夠傳遞定價，還有其他商品需要我們注意嗎？您是否能夠按照正常的合約線提高價格，並且應該在利潤方面提供幫助？

Nothing specific to speak of. Again, we continue to experience pressure in the two spaces, construction and packaging the most, but nothing really there to speak of greater than that.

沒什麼特別好說的。再次，我們繼續在兩個領域感受到壓力，其中建築和包裝領域壓力最大，但實際上沒有什麼比這更大的了。

Yeah, the biggest cost by far is lumber and panel costs and so being able to -- so experiencing the cost increases there and having some success passing along just not fully is encouraging, but still more work to do.

是的，迄今為止最大的成本是木材和麵板成本，因此能夠——因此經歷成本的增加並取得一些成功，雖然不是完全成功，但令人鼓舞，但仍有許多工作要做。

Okay, sounds great. Thanks for taking my questions.

好的，聽起來不錯。感謝您回答我的問題。

Hey thank you.

嘿，謝謝你。

Thank you. I'm showing no further questions in the queue at this time. I would now like to turn the call over to Mr. Will Schwartz for any closing remarks.

謝謝。目前隊列中沒有其他問題。現在我想將電話轉給威爾·施瓦茨先生，請他做最後發言。

Thank you. Thanks again for taking time to join the call today. Despite this more challenging macroeconomic environment, we remain confident in our ability to navigate and win thanks to the people and strategies we have in place. Thanks and have a great day.

謝謝。再次感謝您今天抽出時間參加電話會議。儘管宏觀經濟環境更具挑戰性，但憑藉我們現有的人才和策略，我們仍然對自己的航行和勝利能力充滿信心。謝謝，祝您有愉快的一天。

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。