Veritiv Corp (VRTV) 2023 Q1 法說會逐字稿

Good morning, and welcome to Veritiv Corporation's First Quarter 2023 Financial Results Conference Call.

早安，歡迎參加 Veritiv Corporation 2023 年第一季財務業績電話會議。

As a reminder, today's call is being recorded. We will begin with opening remarks and introductions.

提醒一下，今天的電話會議正在錄音。我們將首先致開幕詞並進行介紹。

At this time, I would like to turn the call over to Scott Palfreeman, Vice President of Finance and Investor Relations.

現在，我想將電話轉給財務和投資者關係副總裁 Scott Palfreeman。

Thank you, Colby, and good morning, everyone. I am joined on today's call by our CEO, Sal Abbate; and our CFO, Eric Guerin. After my remarks, Sal will share an update on our first quarter business performance, followed by Eric, who will provide more details on our financials. Sal will then conclude with an update on our initiatives. We will then open the call for your questions.

謝謝科爾比，大家早安。今天的電話會議由我們的執行長 Sal Abbate 和財務長 Eric Guerin 共同主持。在我發言之後，薩爾將分享我們第一季業務表現的最新情況，隨後艾瑞克將詳細介紹我們的財務狀況。最後，薩爾將介紹我們的各項舉措。之後，我們將開始回答大家的提問。

Before we begin, please note that some of the statements made in today's presentation regarding the intentions, beliefs, expectations and/or predictions of the future are forward-looking. Actual results could differ in a material manner. Additional information on factors that could cause results to differ from those in the forward-looking statements is contained in the company's SEC filings. This includes the risks and other factors described in our 2022 Form 10-K and the company's other publicly available reports and exhibits filed with the SEC.

在開始之前，請注意，今天的簡報中關於未來意圖、信念、期望和/或預測的部分陳述具有前瞻性。實際結果可能存在重大差異。有關可能導致結果與前瞻性陳述不同的因素的更多信息，請參閱公司提交給美國證券交易委員會 (SEC) 的文件中。這包括我們 2022 年 10-K 表格以及公司提交給美國證券交易委員會的其他公開報告和附件中所述的風險和其他因素。

Today's call and presentation slides will contain non-GAAP financial measures. The reconciliation of these non-GAAP measures to comparable U.S. GAAP measures are included at the end of the presentation slides and can also be found in the Investor Relations section of our website.

今天的電話會議和簡報投影片將包含非公認會計準則 (Non-GAAP) 財務指標。這些非公認會計準則 (Non-GAAP) 指標與可比較美國公認會計準則 (US GAAP) 指標的對帳表包含在簡報投影片的末尾，也可在我們網站的「投資者關係」部分找到。

At this time, I will turn the call over to Sal.

現在，我將把電話轉給薩爾。

Thank you, Scott, and good morning, everyone, and thank you for joining us.

謝謝你，斯科特，大家早上好，謝謝你加入我們。

First, I'd like to introduce Eric Guerin. Eric joined Veritiv earlier this year in January and officially became CFO on March 2. We are thrilled to have him on the team as a strategic thought partner. Welcome, Eric.

首先，我想介紹一下 Eric Guerin。 Eric 於今年 1 月初加入 Veritiv，並於 3 月 2 日正式擔任財務長。我們非常高興他能作為策略思想夥伴加入我們的團隊。歡迎 Eric。

This morning, we published our first quarter financial results for 2023. While we experienced difficult market conditions in the first quarter, there are several highlights that I will speak about that demonstrate the resiliency of our business segments and the continued benefits of our ongoing multiyear strategy.

今天上午，我們發布了2023年第一季的財務表現。雖然第一季我們經歷了艱難的市場環境，但我將要談的幾個亮點，這些亮點展現了我們業務部門的韌性以及我們持續多年策略的持續效益。

We achieved record first quarter adjusted EBITDA margin for the company overall as well as within our Packaging and Facility Solutions segments. We also achieved strong first quarter free cash flow, driven by our working capital process improvement efforts and robust earnings. These results demonstrate how our multiyear commercial and operational excellence initiatives help deliver strong bottom line performance in difficult macroeconomic environments.

我們第一季調整後EBITDA利潤率創歷史新高，涵蓋公司整體以及包裝和設施解決方案部門。由於營運資本流程改善和強勁的獲利，我們第一季的自由現金流也表現強勁。這些業績展現了我們多年來卓越的商業和營運措施如何在艱難的宏觀經濟環境下幫助我們實現強勁的獲利表現。

While our Print business suffered from industry-wide destocking, it generated adjusted EBITDA and adjusted EBITDA margins significantly above historical prepandemic levels.

儘管我們的印刷業務受到全行業去庫存的影響，但其調整後的 EBITDA 和調整後的 EBITDA 利潤率卻遠高於疫情前的歷史水準。

Moving on to our consolidated performance during the quarter. Total organic revenue for the first quarter declined 8% on a year-over-year basis, driven largely by the effects of destocking within the Print Solutions segment.

再來看看我們本季的綜合業績。第一季有機總收入年減8%，主要受印刷解決方案部門去庫存的影響。

First quarter adjusted EBITDA of $104 million declined 13% compared to the prior year, primarily due to the sale of our Canada business last year. The resulting adjusted EBITDA margin was a first quarter record of 6.9%, reflecting a year-over-year increase of 50 basis points.

第一季調整後EBITDA為1.04億美元，較上年下降13%，主要原因是去年出售了加拿大業務。由此帶來的調整後EBITDA利潤率創下第一季新高，達6.9%，較去年同期成長50個基點。

Net income for the quarter was $69 million, representing a year-over-year decline of 13% due to the sale of our Canada business and a onetime tax benefit in 2022.

本季淨收入為 6,900 萬美元，年減 13%，原因是出售加拿大業務以及 2022 年的一次性稅收優惠。

Despite the net income contraction, diluted earnings per share for the first quarter was $5 and reflects a decline of only 2% compared to the prior year.

儘管淨收入萎縮，但第一季每股攤薄收益為 5 美元，與前一年相比僅下降 2%。

The combination of solid earnings performance and disciplined management of working capital drove free cash flow of $68 million in the first quarter, which represents significant improvement over the prior year.

穩健的獲利表現和嚴格的營運資本管理相結合，推動第一季的自由現金流達到 6,800 萬美元，與去年相比有顯著改善。

Over the past several years, our commercial strategy has centered on foundational improvements that are sustainable without being significantly impacted by market conditions. For example, we made tough decisions to optimize all our segments through actions including divesting certain low-margin channels, geographies and products. Last year, we strategically exited low-margin businesses, which included our freight brokerage business and our Canada business.

過去幾年，我們的商業策略始終聚焦於基礎性改進，這些改進可持續且不會受到市場環境的顯著影響。例如，我們做出了艱難的決定，透過剝離某些低利潤管道、地區和產品等舉措，優化了所有業務部門。去年，我們策略性地退出了低利潤業務，包括貨運經紀業務和加拿大業務。

Additionally, our pricing discipline and strategy continued to benefit performance during the first quarter. We established centralized pricing management across all of our segments, which has positively impacted our adjusted EBITDA margin performance.

此外，我們的定價原則和策略在第一季繼續提升了業績。我們在所有業務部門建立了集中定價管理，這對調整後EBITDA利潤率的業績產生了正面影響。

As a result, we delivered record first quarter adjusted EBITDA margin despite significant challenges in the print industry and a softer packaging market.

因此，儘管印刷業面臨巨大挑戰且包裝市場疲軟，我們仍實現了創紀錄的第一季調整後 EBITDA 利潤率。

Packaging's resilient performance during the first quarter was a direct result of our commercial go-to-market strategies. Industry-wide destocking and softening demand negatively impacted our volume in the first quarter. However, Packaging's adjusted EBITDA decreased only 1% compared to the prior year, despite both unfavorable market conditions and the impact from the Canada sale.

包裝業務第一季的強勁表現直接得益於我們商業化的行銷策略。全行業去庫存和需求疲軟對我們第一季的銷售產生了負面影響。然而，儘管市場環境不利且受到加拿大銷售的影響，包裝業務的調整後息稅折舊攤銷前利潤 (EBITDA) 較上年同期僅下降了 1%。

Our diversified product and industry vertical mix are aligned with leading suppliers to drive best-in-class cost and customer value. Strength in the heavy manufacturing and healthcare industry verticals partially offset soft demand within consumer electronics and our logistics industry verticals. Our value-added differentiators, including design, testing, automation, kitting and sustainable solutions, continue to enhance the margin profile of the business and create repeatable and more profitable customer relationships.

我們多元化的產品和垂直行業組合與領先供應商保持一致，從而實現一流的成本和客戶價值。重工業和醫療保健行業垂直業務的強勁表現，部分抵消了消費性電子和物流行業垂直業務的疲軟需求。我們增值的差異化優勢，包括設計、測試、自動化、配套和永續解決方案，持續提升了業務的利潤率，並建立了可重複、更有利可圖的客戶關係。

Additionally, meeting the evolving geographical needs of our customers continues to be an important strategy. Through our operations in Mexico, we continue to reduce our customers' overseas risk by supporting their near-shoring needs and capturing additional share of wallet.

此外，滿足客戶不斷變化的地域需求仍然是我們的重要策略。透過我們在墨西哥的業務，我們持續支援客戶的近岸外包需求，並獲得更多市場份額，從而降低客戶的海外風險。

As we look ahead, we expect Packaging market demand to remain soft in the second quarter. However, we believe the effects of customer inventory destocking have largely run their course. We believe our commercial strategy, including strategic sourcing initiatives, alongside our focus on attracting markets such as healthcare and cold chain will offset the effects of recently announced containerboard price decreases and weakened customer demand. As a result, we continue to expect both Packaging adjusted EBITDA and adjusted EBITDA margins to improve relative to full year 2022.

展望未來，我們預期包裝市場需求在第二季將保持疲軟。然而，我們認為客戶庫存減少的影響已基本消退。我們相信，包括策略採購計畫在內的商業策略，以及我們對吸引醫療保健和冷鍊等市場的重視，將抵消近期宣布的箱板紙價格下調和客戶需求減弱的影響。因此，我們繼續預期包裝業務的調整後EBITDA和調整後EBITDA利潤率都將較2022年全年有所提升。

The Facility Solutions segment has been a significant beneficiary of our multiyear commercial strategy. We have greatly improved the profitability of this business through the strategic exits of both our redistribution and Canada businesses. Our focused efforts on supporting complex customer needs, coupled with our broad product portfolio and supply chain expertise, contributed to first quarter adjusted EBITDA growth of 15% compared to the prior year. We achieved record adjusted EBITDA margin in Facility Solutions despite comparing against last year's results which include Canada. This performance was supported by the complementary product and industry vertical mix and the healthier business we have created as a result of shedding the low-margin components I previously mentioned. The strength of our Facility Solutions business demonstrates the value of our balanced and diversified portfolio.

設施解決方案業務部門一直是我們多年商業策略的重要受益者。透過策略性地退出再分銷業務和加拿大業務，我們大幅提升了該業務的獲利能力。我們專注於支援複雜的客戶需求，加上我們廣泛的產品組合和供應鏈專長，推動第一季調整後息稅折舊攤提前利潤 (EBITDA) 較上年增長 15%。儘管與包含加拿大業務的去年業績相比，設施解決方案業務的調整後息稅折舊攤銷前利潤率仍創下新高。這一業績得益於互補的產品和行業垂直組合，以及我們剝離我之前提到的低利潤業務後所創造的更健康的業務。我們設施解決方案業務的強勁表現彰顯了我們均衡多元化產品組合的價值。

Our outlook for Facility Solutions remains favorable as we build on our strong first quarter performance and continue to execute our commercial strategy. We continue to expect Facility Solutions' adjusted EBITDA and adjusted EBITDA margin to improve relative to full year 2022.

鑑於我們在第一季強勁表現的基礎上繼續推動商業策略，我們對設施解決方案業務的前景依然看好。我們預計設施解決方案業務的調整後EBITDA和調整後EBITDA利潤率將較2022年全年有所提升。

Moving to the Print Solutions segment, market-wide dynamics continued to negatively affect the industry. However, our multiyear transformation efforts contributed to a strong first quarter adjusted EBITDA margin performance of 8.6% in our Print Solutions segment, which remains well above pre-2020 levels.

談到列印解決方案業務，整體市場動態持續對產業產生負面影響。然而，我們多年來的轉型努力，促成了列印解決方案業務第一季調整後EBITDA利潤率強勁增長至8.6%，遠高於2020年前的水平。

Over the past several years, we made strategic decisions to rationalize our supplier and product base, exit certain high-risk customers and high-cost-to-serve products, consolidate our supply chain network and build a flexible cost model. All of these efforts have supported the resilient adjusted EBITDA margin profile of the business.

過去幾年，我們做出了一系列策略決策，包括合理化供應商和產品結構、退出部分高風險客戶和服務成本高的產品、整合供應鏈網路以及建立靈活的成本模型。所有這些努力都支撐了公司保持穩健的調整後EBITDA利潤率。

Looking ahead, we now expect destocking across the print market could continue into the third quarter. We also believe pricing could be challenged in the second half of the year if destocking subsides and demand remains low.

展望未來，我們目前預期印刷市場去庫存的趨勢可能會持續到第三季。我們也認為，如果去庫存趨勢消退且需求持續低迷，下半年的定價可能會面臨挑戰。

While the near-term macroeconomic outlook remains uncertain, we believe we have the resources and strategic playbook in place to drive strong earnings performance for the balance of the year.

儘管近期宏觀經濟前景仍不明朗，但我們相信，我們擁有足夠的資源和戰略策略來推動今年剩餘時間的強勁獲利表現。

I will now turn the call over to Eric to provide more detail on our segment-level financial performance as well as the balance sheet and guidance for 2023. Eric?

現在我將電話轉給 Eric，請他提供有關我們分部財務表現以及 2023 年資產負債表和指引的更多詳細資訊。 Eric？

Thanks, Sal. I'm honored to be here. Veritiv is an outstanding company with significant opportunities for future growth and value creation. I look forward to leveraging my background to help accelerate our position in the market.

謝謝，Sal。我很榮幸來到這裡。 Veritiv 是一家優秀的公司，擁有巨大的未來成長和價值創造機會。我期待利用我的背景來幫助提升我們在市場上的地位。

Today, I will provide more details on our segment's first quarter performance and updates on cash flow, leverage, capital allocation and our guidance for 2023.

今天，我將提供有關我們部門第一季業績的更多詳細資訊以及現金流、槓桿率、資本配置和 2023 年指導的最新情況。

Please note that when we speak to organic results, we are referring to reported results excluding the impact of the sale of our Canada business and our freight logistics business, Veritiv Logistics Solutions. As a reminder, we sold our Canada business at the end of April last year. So we will fully lap the effects of the sale next quarter.

請注意，我們所說的有機績效是指剔除出售加拿大業務和貨運物流業務 Veritiv Logistics Solutions 的影響的報告績效。需要提醒的是，我們已在去年 4 月底出售了加拿大業務。因此，下個季度我們將完全消化此次出售的影響。

On a day basis count, I would note that the first quarter of 2023 had the same number of selling days as the previous year.

以天數計算，我注意到 2023 年第一季的銷售天數與前一年相同。

Starting with the Packaging segment. Revenue was $895.4 million, representing year-over-year decline of 10.7% on a reported basis; while on an organic basis, revenue decreased only 3.6%.

首先從包裝部門開始。營收為 8.954 億美元，以報告基礎計算年減 10.7%；但以有機基礎計算，營收僅下降 3.6%。

Packaging volume performance across all of our industry verticals was challenged, as the effects of customer destocking and economic uncertainty continued throughout the first quarter. Volume declines were greatest within our light manufacturing industry vertical, partially driven by weakness in consumer electronics. In aggregate, year-over-year domestic volume declined in the mid-single-digit range in the first quarter.

由於客戶去庫存和經濟不確定性的影響持續貫穿第一季度，我們所有垂直行業的包裝銷售表現均面臨挑戰。輕工業製造業的銷售降幅最大，部分原因是消費性電子產品市場疲軟。整體而言，第一季國內銷量年減幅度約為個位數。

While volumes were depressed during the quarter, price resiliency led to positive year-over-year revenue growth in several industry verticals for the quarter, including heavy manufacturing, wholesale and retail and health care.

雖然本季銷量下降，但價格彈性導致本季多個垂直行業的收入年增，包括重型製造、批發和零售以及醫療保健。

From a product perspective, our corrugated volume declined 6% versus the prior year, which was better than the market decline of 8.5%. Corrugated pricing remained strong and offset most of the volume decline.

從產品角度來看，我們的瓦楞紙銷量較去年同期下降6%，優於市場8.5%的降幅。瓦楞紙價格維持強勁，抵銷了大部分銷售下滑。

Packaging's first quarter adjusted EBITDA was $96.4 million. This represents a year-over-year decline of just $1 million on a reported basis. When adjusted for the sale of the Canada business in 2022, adjusted EBITDA improved 3.4% compared to the prior year.

包裝業務第一季調整後息稅折舊攤提前利潤 (EBITDA) 為 9,640 萬美元。據報告，這僅比去年同期下降 100 萬美元。考慮到 2022 年出售加拿大業務的影響，調整後息稅折舊攤提前利潤 (EBITDA) 較上年增長 3.4%。

Continued execution of our commercial strategy drove a first quarter adjusted EBITDA margin record of 10.8%, reflecting an improvement of 110 basis points compared to the prior year.

我們商業策略的持續執行推動第一季調整後的 EBITDA 利潤率達到 10.8%，較上年同期提高了 110 個基點。

Moving to the Facility Solutions segment. Revenue of $180.2 million represents a year-over-year reported decline of 21.4%; while on an organic basis, revenue increased 9.3%. Strength in away-from-home categories such as entertainment and hospitality continued during the first quarter, with volume growth in the mid-teens. We also saw positive volume growth in office-like verticals as more employees return to the office. We believe this business is well positioned to benefit from the ongoing shift from goods to services.

轉向設施解決方案業務。營收 1.802 億美元，年減 21.4%；但有機成長 9.3%。娛樂和酒店等非居家類別在第一季持續保持強勁成長，銷售量增幅達兩位數。隨著更多員工重返辦公室，類似辦公室的垂直產業的銷售也呈現正成長。我們相信，該業務將受益於持續的從商品到服務的轉變。

Adjusted EBITDA increased 14.9% compared to the prior year, to $15.4 million, despite the divestiture of the Canada business. The resulting adjusted EBITDA margin was a first quarter record of 8.5%.

儘管剝離了加拿大業務，調整後EBITDA仍較上年成長14.9%，達到1,540萬美元。調整後EBITDA利潤率達到第一季創紀錄的8.5%。

Moving to the Print Solutions segment. First quarter reported revenue declined 27.2% compared to the prior year, while organic revenue declined 20.1%. We believe continued customer destocking led to weak demand during the first quarter, resulting in volume declines in the mid-30% range compared to the prior year, as customers continue to work through their excess inventory. Price resiliency continued in the first quarter, partially offsetting volume weakness.

轉向列印解決方案業務。第一季報告營收較上年同期下降27.2%，有機收入下降20.1%。我們認為，客戶持續去庫存導致第一季需求疲軟，由於客戶仍在消化過剩庫存，導致銷售量較上年同期下降30%左右。第一季價格保持彈性，部分抵銷了銷售疲軟的影響。

First quarter adjusted EBITDA was $37.2 million, representing a year-over-year decline of 31.9%. Adjusted EBITDA margin for the first quarter was 8.6%. While this represents a 60-basis point decline compared to prior year, adjusted EBITDA margin remains well above its pre-2020 levels.

第一季調整後EBITDA為3,720萬美元，較去年同期下降31.9%。第一季調整後EBITDA利潤率為8.6%。雖然與去年同期相比下降了60個基點，但調整後EBITDA利潤率仍遠高於2020年前的水準。

Shifting from the segment-level results to our consolidated free cash flow. The combination of strong earnings and disciplined working capital management drove strong first quarter cash flow from operations of $70.9 million. After subtracting $2.9 million of capital expenditures, free cash flow was $68 million for the quarter.

從分部業績來看，我們來看看合併自由現金流。強勁的獲利和嚴謹的營運資本管理相結合，推動第一季營運現金流強勁成長，達到7,090萬美元。扣除290萬美元的資本支出後，本季自由現金流為6,800萬美元。

Strong earnings and healthy free cash flow contributed to record-low net debt-to-adjusted EBITDA leverage ratio of 0.3x.

強勁的獲利和健康的自由現金流使淨債務與調整後 EBITDA 槓桿率達到創紀錄的 0.3 倍。

From a capital allocation perspective, we returned approximately $8.5 million to shareholders during the first quarter in the form of a quarterly dividend.

從資本配置角度來看，我們在第一季以季度股息的形式向股東返還了約 850 萬美元。

We believe our favorable leverage ratio, along with an active pipeline of inorganic opportunities, provide the company with strategic optionality to act on multiple capital allocation priorities simultaneously.

我們相信，我們有利的槓桿率以及活躍的無機機會管道為公司提供了策略選擇權，可以同時對多個資本配置優先事項採取行動。

Moving now to return on invested capital. Because of our sustained earnings improvement and efficiency initiatives as well as improved balance sheet, our ROIC for the 12 months ending March 31, 2023, was 34.7%. This represents a nearly 26-percentage point improvement since 2020.

現在來看看投資資本報酬率。由於我們持續的獲利提升和效率提升舉措，以及資產負債表的改善，截至2023年3月31日的12個月，我們的投資資本回報率（ROIC）為34.7%。這比2020年提高了近26個百分點。

Finally, given our performance to date and continued execution of our strategic initiatives, we are reaffirming guidance for the full year. Despite slowing market demand and macroeconomic uncertainty, we continue to expect adjusted EBITDA to be in the range of $430 million to $490 million and net income in the range of $265 million to $305 million. We are maintaining diluted earnings per share to be in the range of $19 to $22, based on 13.9 million fully diluted shares outstanding. Our free cash flow expectations of approximately $275 million remains unchanged.

最後，鑑於我們迄今為止的業績以及策略性舉措的持續執行，我們重申全年業績指引。儘管市場需求放緩且宏觀經濟存在不確定性，我們仍預計調整後息稅折舊攤銷前利潤 (EBITDA) 將在 4.3 億美元至 4.9 億美元之間，淨利潤將在 2.65 億美元至 3.05 億美元之間。基於 1,390 萬股完全稀釋流通股，我們維持稀釋每股收益在 19 美元至 22 美元之間的預期。我們預計自由現金流約為 2.75 億美元，保持不變。

I will now turn the call back to Sal to provide an update on our initiatives. Sal?

我現在將電話轉回給 Sal，請他介紹我們的舉措。 Sal？

Thank you, Eric. As the industry continues to work through the challenging macro environment and the effects of customer inventory destocking, we continue to execute several strategic initiatives that we believe will not only generate top line growth, but will also accelerate our position in the market and support adjusted EBITDA margin stability.

謝謝你，Eric。隨著業界持續應對充滿挑戰的宏觀環境以及顧客去庫存的影響，我們將繼續執行多項策略舉措，我們相信這些舉措不僅能帶來營收成長，還能提升我們在市場中的地位，並支持調整後EBITDA利潤率的穩定。

The next wave of our strategic sourcing initiatives continues to progress as planned. We are partnering with strategic suppliers to provide the best combination of quality and price across our full spectrum of Packaging and Facility Solutions products. These efforts should result in better value for our customers and further contribute to our overall margin sustainability.

我們的下一輪戰略採購計畫正在按計劃推進。我們正與策略供應商合作，力求為我們提供涵蓋所有包裝和設施解決方案產品系列的最佳品質和價格組合。這些努力將為我們的客戶創造更高的價值，並進一步促進我們整體利潤的可持續性。

We continue to make progress on our front- and back-end technology initiatives. These investments are expected to improve the customer experience and contribute to top line revenue growth. Additionally, we continue to invest in our next-generation supply chain to meet the evolving needs of our customers.

我們在前端和後端技術專案方面持續取得進展。這些投資預計將提升客戶體驗，並促進營收成長。此外，我們將繼續投資下一代供應鏈，以滿足客戶不斷變化的需求。

Before we move to the question-and-answer portion of the call, I want to mention that last week we published our 2022 corporate social responsibility report. We are pleased with the continued progress made on our sustainability journey. As an organization, we are not just participating in sustainability; we intend to lead our industry by supporting our customers' sustainability goals through value-added solutions and an expanded portfolio of products with sustainable attributes.

在進入問答環節之前，我想提一下，我們上週發布了2022年企業社會責任報告。我們對永續發展之路的持續進展感到欣慰。作為一家企業，我們不僅參與永續發展，更致力於透過提供增值解決方案和豐富且具備永續屬性的產品組合，支持客戶的永續發展目標，引領產業發展。

There are many updates which we proudly detail within the report. Key highlights from last year include that we reduced our combined Scope 1 and Scope 2 emissions and are progressing well against our targeted reduction goal of 50% from our 2020 baseline.

報告中詳細介紹了許多更新內容，我們引以為傲。去年的亮點包括：我們減少了範圍一和範圍二的綜合排放量，並且正在穩步推進我們設定的減排目標，即在2020年的基礎上減排50%。

We continue to invest in a positive and equitable workplace. Last year, we conducted an employee engagement survey and received a score of 82 out of 100, which was 5 points higher than the industry benchmark overall and higher than the benchmark in all 12 categories surveyed.

我們持續投資於積極、公平的工作環境。去年，我們進行了員工敬業度調查，得分為82分（滿分100分），整體上比行業基準高出5分，並在所有12個調查類別中均高於基準。

We also launched employee resource groups to provide employees a way to connect over shared background and experiences and opportunities to learn and grow through allyship.

我們也啟動了員工資源小組，為員工提供一種透過共同的背景和經驗進行交流的方式，以及透過聯盟進行學習和成長的機會。

I am extremely proud to say that because of these efforts and many others, we were recently recognized as one of Fortune magazine's most admired companies in 2023.

我非常自豪地說，由於這些努力以及其他許多努力，我們最近被《財星》雜誌評為 2023 年最受尊敬的公司之一。

Additionally, we included our first ESG scorecard in the corporate social responsibility report. The scorecard measures our performance against key targets across our multiple ESG workstreams.

此外，我們在企業社會責任報告中加入了首份ESG記分卡。這張記分卡衡量了我們在多個ESG工作流程中針對關鍵目標的績效。

I encourage everyone on the call to read the report available on our website Sustainability section. You can learn more about the great work we are doing to support our employees and the communities where we live and work, reduce our carbon footprint and help our customers meet their sustainability goals.

我鼓勵所有與會者閱讀我們網站「永續發展」版塊提供的報告。您可以了解更多關於我們為支持員工和我們生活和工作的社區、減少碳足跡以及幫助客戶實現永續發展目標所做的傑出工作。

Finally, I want to thank our employees for their passion and dedication to supporting our customers. Every day, our approximately 5,000 employees go above and beyond to delight our customers. Thank you for all your hard work.

最後，我要感謝我們員工對客戶服務的熱情和奉獻。我們約5000名員工每天都盡力，為客戶提供滿意的服務。感謝你們的辛勤付出。

Colby, this concludes our prepared remarks. We can now open the call for questions.

科爾比，我們的準備演講到此結束。現在我們可以開始提問了。

Your first question comes from the line of George Staphos from Bank of America.

您的第一個問題來自美國銀行的喬治‧斯塔福斯 (George Staphos)。

I guess the one thing I want to start with is the question of destocking. We hear a lot of our companies say they expect destocking to be done by first quarter or second quarter or third quarter. And on the Print side, you're now saying third quarter, and we appreciate that detail. Where are you ultimately being able to figure that out? At the end of the day, it's very difficult to know what's in inventory, it's very difficult to parse what true, if you will, sell-through is, or a decline in sell-through, relative to destocking. So what informs that view? And in particular, as regards Print, why the move now to destocking ending by third quarter as opposed to I think it was previously second quarter?

我想先談談去庫存的問題。我們聽到很多公司表示，他們預計去庫存將在第一季、第二季或第三季完成。而印刷品方面，你們現在說是第三季度，我們很欣賞這個細節。你們最終是如何決定庫存的呢？歸根結底，很難​​知道庫存有多少，也很難分析真正的銷售率，或者說，相對於去庫存而言的銷售率下降。那麼，是什麼促使了這種觀點的出現呢？特別是對於印刷品，為什麼現在要到第三季才能完成去庫存，而不是像之前那樣在第二季完成？

Thanks for the question, George. When we originally announced the destocking and/or what we had anticipated in the first quarter, we said toward the end of this quarter. So we did expect it to continue into the May/June time frame. Well, we're in May now. And what's informing our outlook now to be into the third quarter are a couple of factors; mainly, our suppliers. So our suppliers are hearing and signaling that they see their shipments and their business being sort of pushed into the mid- to latter half of the third quarter with their inventory levels.

謝謝你的提問，喬治。我們最初宣布去庫存以及/或我們在第一季的預期時，是說會在本季末。所以我們確實預計這種情況會持續到五月/六月。嗯，現在已經五月了。現在影響我們第三季前景的因素有幾個，主要是我們的供應商。我們的供應商聽到並發出信號，他們預計他們的出貨量和業務會因為庫存水準而推遲到第三季中後期。

And the second informing point is our own inventory. We have a significant amount of our inventory that comes from Europe. And as we look at our days inventory on hand and the buildup that has occurred as a result of the whiplash in inventory last year, our calculations say it's going to be more into that mid- to late-summer time frame.

第二個資訊點是我們自己的庫存。我們有大量庫存來自歐洲。考慮到我們庫存的天數，以及去年庫存暴跌導致的庫存積累，我們的計算表明，庫存的下降將更多地發生在夏季中後期。

The third point, maybe not as technical, would be our customers themselves indicating that the demand is healthy, now that's a subjective word, but the demand is healthy, and they expect that when their inventory does start to decline in this third quarter, we would expect shipments to pick up.

第三點，可能不那麼技術性，是我們的客戶自己表示需求是健康的，這是一個主觀詞，但需求是健康的，他們預計，當他們的庫存在第三季度開始下降時，我們預計出貨量會增加。

So those are kind of the 3 points we're using to hone in on a very imprecise time frame.

所以這些是我們用來決定非常不精確的時間框架的 3 點。

That's a great rundown, Sal. We appreciate it. Are there particular, I'm sure there are, the question is whether you'll be able to share them, are there any particular end markets or products within Print where the destocking may be a little bit more challenging or farther out in terms of progression?

Sal，你的概述很棒。我們很感激。請問您能否分享一些具體情況？我相信肯定有。在印刷領域，有哪些特定的終端市場或產品，在去庫存方面可能會更具挑戰性，或者說，在推進方面，去庫存可能會更遠一些？

I would say that it's really a customer and channel mix issue for us. And so if you recall, George, we combined our Print and our Publishing segments last year. And so we've been reporting them in tandem now. Our Publishing segment, which is really geared more toward advertising and promotion, is seeing a softer demand than our traditional printer business. And so I would say that destocking is taking longer in those grades and with those customers.

我想說，這對我們來說實際上是客戶和通路組合的問題。喬治，如果你還記得的話，我們去年合併了印刷和出版業務。所以我們現在開始同時報告這兩個部門的表現。我們的出版業務，實際上更專注於廣告和促銷，其需求比我們傳統的印刷業務更疲軟。所以，我認為，這些等級的紙張和客戶的去庫存化時間會更長。

And then, frankly, again in the customer mix, some of our larger customers who had the ability and the capital to store inventory last year, which we're finding out that most people did just because of the stark availability of inventory in '21, those larger customers are still burning through inventory.

然後，坦白說，在客戶組合中，我們的一些較大的客戶去年有能力和資金儲存庫存，我們發現大多數人這樣做只是因為 21 年庫存供應緊張，而這些較大的客戶仍在消耗庫存。

So it's really a large customer issue combined with a mix issue toward our Publishing business and their advertising companies and customers.

因此，這實際上是一個大客戶問題，同時也是針對我們的出版業務及其廣告公司和客戶的混合問題。

Understood. And second question, and I have one more and I'll turn it over to see if there are any otherd and come back in queue, please, but one, I know the company doesn't like to talk too much about this, but how much should we expect that your results can benefit from relatively controllable actions, self-help measures? If we hold demand relatively constant from a seasonal standpoint, aside from the destocking that you had, and we assume nothing more for new, if you will, market pricing, what will you generate and add to your earnings, all else equal from your self-help measures on centralized sourcing, centralized pricing and so on?

明白了。第二個問題，我還有一個，我會翻過來看看還有沒有其他的，然後排隊再問。不過，我知道公司不太喜歡談論這個問題，但我們應該預期，相對可控的行動和自救措施能在多大程度上改善你們的績效？如果從季節性角度來看，除了你們去庫存之外，需求保持相對穩定，並且我們不假設新的市場定價，那麼在其他條件相同的情況下，你們透過集中採購、集中定價等自救措施能創造多少收益，並增加多少利潤？

And then a second question. You're maintaining guidance for the year, and that's terrific. We appreciate that, either/or. And you're doing that even though destocking in Print is worse. So that would argue that other things are going better. So what's been better than expected within the segments and, if you will, in terms of categories driving earnings within those segments?

然後是第二個問題。您維持了今年的業績指引，這很棒。我們對此表示讚賞，但無論如何，您都同意。儘管印刷品去庫存的情況更糟，但您仍然這樣做。這說明其他方面正在好轉。那麼，各個細分市場中哪些表現比預期更好呢？請您談談推動這些細分市場獲利的品類。

Thanks, George. I'll try to break those down one by one.

謝謝喬治。我會試著一一解釋。

The first question around what you're titling self-help. And so we refer to our centralized pricing as one key metric. I would tell you that's certainly a driver of the resiliency of our margins that we're projecting in our guidance.

第一個問題是關於您所說的「自助」是什麼。我們將集中定價視為一項關鍵指標。我想說，這無疑是我們在指引中預測的利潤率彈性的驅動因素。

The other mechanism that we are very flexible with is our supply chain. So we can flex our supply chain based on demand. And so we're constantly looking at that ratio of spend of operating expense to sales, and we ebb and flow. And that's not through layoffs or anything draconian as much as it is just watching natural attrition in times of decline and then obviously ramping up when we need to.

我們另一個非常靈活的機制是我們的供應鏈。因此，我們可以根據需求調整供應鏈。因此，我們不斷關注營運支出與銷售額的比率，並不斷調整。這並非透過裁員或任何嚴厲的措施，而是在業務下滑時期觀察自然減員，然後在需要時自然增加人員。

So our operational flexibility is one area that really drives that. Our centralized pricing, as you mentioned, is a second area.

因此，我們的營運靈活性是真正推動這一目標實現的一個面向。正如您所提到的，我們的集中定價是第二個方面。

And the third area is really our diversification, not only by business segment, but even within, let's talk about Packaging for a moment, inside of Packaging, our value-added solutions. So the fact that we really are cradle-to-cradle or design-to-delivery in the front end of the business around design solutions, kitting, testing, that all helps create, frankly, stickiness with our customers and more resiliency in our margins.

第三個領域實際上是我們的多元化，不僅在業務部門，甚至在內部，例如包裝，我們的增值解決方案。事實上，我們在業務前端圍繞著設計解決方案、配套、測試，真正做到了從搖籃到搖籃，或者說從設計到交付的整個過程。坦白說，這一切都有助於我們與客戶建立牢固的聯繫，並提高利潤率的彈性。

To the second part of your question around why hold guidance when the destocking seems to be a little more pronounced. Well, a couple of things. One is we provided a relatively wider range this year than we typically do, and we're holding that wider range given the uncertainty. And so we believe that range is absorbing the uncertainty, particularly in the Packaging and Print markets.

關於你問題的第二部分，為什麼在去庫存似乎更明顯的情況下仍維持指引不變？有幾點原因。首先，我們今年提供的指引範圍比以往相對較寬，考慮到不確定性，我們維持這個範圍不變。因此，我們相信這一範圍正在吸收不確定性，尤其是在包裝和印刷市場。

So if you think about what -- if we were talking about the bottom end of the range, that does assume greater deterioration in pricing or volume in Packaging and Print, and that would be offset by further cost-cutting actions. Toward the higher end of the range, we're assuming that the market rebounds slightly better than projected at this point in Packaging. So we don't have a large upside baked into the Print business in our guidance, but there is some signs that Packaging could improve toward the latter half of the year, and that is in the guidance.

所以，如果你仔細想想——如果我們談論的是最低端，那確實假設包裝和印刷業務的價格或銷量會大幅下滑，而這將被進一步的成本削減措施所抵消。而對於高端，我們假設包裝業務的市場反彈會略優於目前的預期。因此，我們的指引中並沒有包含印刷業務的大幅上漲空間，但有一些跡象表明，包裝業務可能會在今年下半年有所改善，這一點已在指引中體現。

Specifically around the question around what are some of the surprises or things, the positives that can offset that, our Facility Solutions business is one. I mean, it is definitely performing at an accelerated rate this year. The first month of the quarter is strong and, frankly, stronger in both Packaging and FS than the first quarter. So we're seeing some resiliency there.

具體來說，關於哪些意外或正面因素可以抵消這些影響，我們的設施解決方案業務就是其中之一。我的意思是，今年該業務的表現肯定在加速。本季第一個月表現強勁，坦白說，包裝和設施解決方案業務都比第一季表現強勁。所以我們看到了該業務的一些韌性。

And then the other piece is our North American, our core North American packaging business is better than our international business. We've cited the European business and the Asian business as being soft for the better part of 12 months now. Our core U.S. business is performing, I think, better than market and better than our international businesses, both in the first quarter and now into the April time frame. And so that is something that we're counting on to continue to be strong.

另一點是我們的北美業務，我們的核心北美包裝業務表現優於我們的國際業務。我們指出，歐洲業務和亞洲業務在過去12個月的大部分時間裡表現疲軟。我認為，我們的核心美國業務表現優於市場，也優於我們的國際業務，無論是在第一季還是截至4月份的時間段。因此，我們期待這項業務能夠持續保持強勁。

And again, that is a function of our balanced product category, back to the third part of your question around the categories. We are seeing, and I'll talk a little bit about verticals, Eric mentioned that our corrugated business seems to be a bit stronger than the market, still negative volume year-over-year but a little bit better than the market. And we're still seeing our ecommerce-type products in Packaging stronger than the balance of the portfolio, along with our cold chain solutions in healthcare. And so those are areas where we've seen resiliency of the product lines over others.

再次強調，這是我們均衡產品類別的結果，回到您關於產品類別問題的第三部分。我們看到，我會稍微談談垂直行業，Eric 提到我們的瓦楞紙業務似乎比市場表現略強，儘管同比銷量仍然為負，但比市場表現略好。我們仍然看到包裝領域的電商類產品表現強於其他產品組合，以及醫療保健領域的冷鏈解決方案。因此，在這些領域，我們看到了產品線比其他領域更具彈性。

On the Facility Solutions side, it's really our food service products are doing well, and really a return to our traditional products like towel and tissue as, again, as Eric mentioned, the office-like environment seems to be settling in, in this new normal of 60% to 70% of prepandemic level.

在設施解決方案方面，我們的食品服務產品確實表現良好，而且我們確實回歸了毛巾和紙巾等傳統產品，正如 Eric 提到的那樣，類似辦公室的環境似乎正在適應這種新常態，達到疫情前水平的 60% 到 70%。

So those are a couple of areas of strength that point us to the confidence we have in our range for guidance.

因此，這些是我們的優勢領域，它們讓我們對自己的指導範圍充滿信心。

Sal, I'll try one more time, and I respect whatever answer you can give me. So is there -- I recognize the cost reduction in self-help is going to be somewhat of an accordion, based on the market that you're in. With that said, is there a baseline self-help that you'll generate this year that you could share with us in dollar terms?

薩爾，我再試一次，無論你給我什麼答案，我都很尊重。那麼——我知道自助的成本削減會像手風琴一樣，這取決於你所處的市場。話雖如此，你能不能跟我們分享一下，今年你將會實現的自助成本的基準數字，以美元計算？

I'm trying to triangulate that question in dollar terms. And George, I think -- Eric, do you have a sense of that?

我正試著用金錢來解釋這個問題。喬治，我想…艾瑞克，你明白這一點嗎？

I think, George from that perspective, I don't know if we're going to give a specific number, but what I would say is if you look at our margin performance from last year, you should see that continue for the front half of the year on the pricing side. And then we're being very disciplined on the cost side and going to market with our suppliers and partnering with them.

喬治，從這個角度來看，我不知道我們是否會給出一個具體的數字，但我想說的是，如果你看看我們去年的利潤率表現，你應該會看到，在定價方面，這種趨勢在今年上半年會持續下去。而且，我們在成本方面非常嚴格，並與供應商一起開拓市場並與他們合作。

I don't think we're ready to give a specific number. But if you look at how our performance and our margin expanded last year and started the front half of this year, the first quarter, we're continuing that type of approach on the cost and pricing discipline. Does that help you, George?

我認為我們還沒準備好給出一個具體的數字。但如果你看看我們去年以及今年上半年（第一季）的業績和利潤率的成長情況，就會發現我們在成本和定價方面仍延續了這種策略。喬治，這對你有幫助嗎？

At this time, I am not showing any more questions in the queue.

目前，隊列中不再顯示任何問題。

Disregard. I apologize. We have George Staphos from Bank of America.

忽略。抱歉。我們是美國銀行的喬治·斯塔福斯。

So can you talk a bit about near-shoring and how that is in real practical terms right now helping results and what it might mean, say, as we look out to, call it, 2024?

那麼，您能否談談近岸外包，以及它在實際應用中目前如何幫助取得成果，以及它對我們所說的 2024 年可能意味著什麼？

Additionally, can you talk about what you mean by the next-generation supply chain? I think, Sal, it was one of your comments. But what does that mean? And how does it actually benefit your results in '23 and into '24? And then I'll ask some of my other follow-ons on this one as well.

此外，您能談談您所說的「下一代供應鏈」嗎？薩爾，我記得您之前說過。但這究竟意味著什麼？它實際上如何幫助你們在2023年和2024年的表現？之後，我也會就這個問題詢問其他一些後續問題。

On the first question around nearshoring and specifically, I would say, George, that it's not a meaningful factor in our 2023 performance. While our Mexico business performed quite well not only this year but last year and we're seeing the migration to more and more business coming from our international Asian business to Mexico, it's still a relatively small part of our business.

關於第一個關於近岸外包的問題，喬治，我想說，這並非我們2023年業績的重要因素。雖然我們的墨西哥業務不僅今年表現良好，去年也表現良好，我們看到越來越多的業務從亞洲國際業務遷移到墨西哥，但這仍然只占我們業務的一小部分。

Overall, our international business, including Mexico, is roughly 10% to 15% of our Packaging business. So it's not going to have a meaningful impact in '23, but we continue to gear up, toward the back half of your question there around '24, we continue to make sure that our resources in Mexico are ready. We've expanded facilities. We've expanded our labor force there to be ready. And we're working actively as our customers are thinking about transitioning to Mexico.

整體而言，包括墨西哥在內的國際業務約占我們包裝業務的10%到15%。因此，這不會對2023年產生重大影響，但我們會繼續加緊努力，在2024年左右，也就是你問題的後半部分，我們會繼續確保我們在墨西哥的資源準備就緒。我們已經擴建了設施，擴大了那裡的勞動力，以做好準備。我們也積極配合客戶向墨西哥的轉型。

So I would tell you it's more of a forward-looking preparedness than it is an immediate impact in 2023.

所以我想告訴你，這更多的是一種前瞻性的準備，而不是 2023 年的直接影響。

Those customers, do they say, okay, we're doing, in aggregate, I'm making the number up, $10 million in total across all your customers and, based on what they're saying the exit rate on '24 on their revenue is going to be $20 million, $30 million, $50 million, is there a way to equate what that opportunity might look like '24, '25?

這些客戶會不會說，好吧，我們總共為所有客戶創造了 1000 萬美元的收入，根據他們的說法，2024 年的退出率將是 2000 萬美元、3000 萬美元、5000 萬美元，有沒有辦法將這個機會在 2024 年和 2025 年等同起來？

That's a difficult question because it's really customer by customer. If I had to put a rough approximation on it, I would say more in the 15% to 20% ramp-up than 50% or double. It just takes a while to migrate that over.

這個問題很難回答，因為具體情況要具體分析。如果要我粗略估計一下，我覺得成長幅度應該在15%到20%之間，而不是50%或翻倍。只是遷移需要一些時間。

Understood. And on the supply chain?

明白了。那麼供應鏈方面呢？

So when we speak to next-generation supply chain, one is just, I would say, more tactically and more traditionally our footprint. And so where should we be positioned, should we continue with our -- we have roughly 100 locations across the globe that serve within a certain mile radius, and that has served us well in the past. Now we're looking at should there be a combination of that combined with mega centers that help with our pick-pack-and-ship and small-order format, and really what role does automation play in the future. You might have seen that we did experiment and our experimenting with driverless truck routes in between our facilities when we do our overnight transport runs.

所以，當我們談到下一代供應鏈時，我想說，從戰術層面和傳統層面來說，一個是我們的佈局。那麼，我們該把位置設在哪裡？我們是否應該繼續保持下去——我們在全球大約有100個服務點，服務半徑在一定英里內，過去這些服務一直很有效。現在，我們正在考慮是否應該將這些服務點與大型中心結合起來，以幫助我們完成「取貨-包裝-出貨」和小訂單模式，以及自動化在未來究竟會扮演什麼角色。你可能已經看到，我們在夜間運輸時，確實嘗試過在工廠之間設置無人駕駛卡車路線。

So items like that around automation inside the box as well is what we refer to as next-generation supply chain, really to be ready to face this continuing labor challenge in the market.

因此，圍繞盒子內部自動化的類似項目就是我們所謂的下一代供應鏈，真正準備好應對市場上持續的勞動力挑戰。

Understood. You talked about the pipeline on -- I mean, ultimately, M&A opportunities being positive. I forget the exact wording you used, but certainly, that's -- it's active, I think, is what you said.

明白了。您剛才提到了通路方面——我的意思是，最終併購機會是積極的。我忘了您具體是怎麼表達的，但您說的是——我認為是活躍的。

Active, is right.

主動，是對的。

So again, to the investor and analyst, what should we take away? What does that mean? Is the pipeline larger than last year, smaller than last year? If we see you make an acquisition, whenever that might be, whether it's next month, yet tomorrow or 3 years from now, is that going to be something that is immediately accretive to earnings and return? Is there a 3-year sort of dig-out period before it becomes that? How would you have us think about the activity, what it means, the comparison and what it might mean for your very good, right now, earnings and returns?

那麼，對於投資人和分析師來說，我們該從中得到什麼呢？這意味著什麼？今年的融資管道比去年多還是少？如果我們看到您進行收購，無論何時，無論是下個月、明天還是三年後，這筆收購是否會立即增加您的收益和回報？在實現這一目標之前，是否有三年的挖掘期？您希望我們如何看待這項活動？它意味著什麼？與之前的比較結果如何？以及它對您目前的收益和回報可能意味著什麼？

So you're exactly right, George. The word we use is "active pipeline." With respect to the question around is it more or less active than this year, I would say it's slightly elevated this year toward the last half of the year, last year, as everyone knew that the debt markets became really expensive. That seems to be opening up a bit. And so I think there are more potential sellers coming on, recognizing that the environment might be a little more conducive for transactions in this middle half of the year, toward the end of the year.

喬治，你說得完全正確。我們用的字是「活躍的管道」。至於今年的活躍程度是更高還是更低，我想說，今年接近下半年，也就是去年，活躍程度略有提升，因為大家都知道債務市場變得非常昂貴。現在的情況似乎有所改善。因此，我認為會有更多潛在的賣家加入，因為他們意識到今年中半年和年底的環境可能更有利於交易。

So I would say our pipeline is active and slightly more robust than last year. We continue to look at scope and scale opportunities, scoping those things that could enhance our capabilities or be additive to our capabilities. Scale being those things, to your second part of your question around leverage and accretion, scale would be size and folding it into what I would call our traditional model.

所以我想說，我們的產品線很活躍，而且比去年略有增強。我們將繼續關注規模和規模方面的機會，探索那些能夠增強我們能力或增加我們能力的項目。規模就是這些，關於你問題的第二部分關於槓桿和增值，規模就是規模，並將其融入我所說的傳統模式。

We are focused primarily on packaging acquisitions. As we look at the pipeline, I would not say that it's -- you mentioned time frames. I would not say that we're looking at things that would be a 3-year runway for accretion. So we are looking at things that we could immediately benefit from and deploy our strategic and commercial and operational playbook more quickly so that we can reap the returns of that acquisition much more sooner in the process.

我們主要專注於打包收購。當我們審視收購管道時，我不會說——你提到了時間框架。我不會說我們正在尋找那些需要三年時間才能累積的項目。所以我們正在尋找那些可以立即受益的項目，並更快地部署我們的策略、商業和營運策略，以便我們能夠更快地從收購中獲得回報。

Eric, anything you want to add to that?

艾瑞克，你還有什麼要補充的嗎？

No, I think you covered it nicely, Sal.

不，我認為你已經很好地解釋了這一點，薩爾。

And how attractive are the valuations relative to last year? Obviously, the credit markets tightened up a bit. Has that brought more realism to valuation expectations on the sell side? And within that, what -- I know there's not going to be an average. So I kind of gave you the answer to the question. You can back out. But what kind of size, on average, acquisition are you looking at in terms of revenue terms?

相對於去年，估值有多吸引人？顯然，信貸市場略有收緊。這是否讓賣方的估價預期更為現實？而且，我知道這裡面不會有一個平均值。所以我已經回答你這個問題了。你可以退出。但從營收角度來看，你平均看中的收購規模是多少？

So maybe, George, the first part of your question first. As far as the market, we still see that there's an elevated expectation on sellers. It's not caught up to the tightness in the market. And now we're actually starting to see the market loosen up a bit. So I think there's still high expectations from multiples as you look at the market, but we'll continue to be disciplined in our approach and how we look at the M&A activity.

喬治，也許可以先回答你問題的第一部分。就市場而言，我們仍然看到賣家的預期過高。這還沒有趕上市場緊張的程度。現在我們實際上開始看到市場有所放鬆。所以我認為，從市場角度來看，人們對本益比的預期仍然很高，但我們將繼續嚴格控制我們的方法以及我們對併購活動的看法。

And what was the second part of your question, George? I may have missed it.

喬治，你問題的第二部分是什麼？我可能沒注意到。

Just size. Are you looking -- what's the average size?$10 million? $1 million? Somewhere in between?

只是規模。你在看——平均規模是多少？ 1000萬美元？ 100萬美元？還是介於兩者之間？

I'd go back to Sal's answer to the question. We're going to continue to look at scope and scale. As you know, we have our ABL. So maybe scope size would fit right in there nicely. And we're at 0.3x net debt to adjusted EBITDA. We could execute those relatively quickly. But as we've talked about, scale is an option for us as well, and we look at alternatives there as well. So as we look at the pipeline, we are looking across that broad array of both scope and scale.

我回到 Sal 的回答。我們將繼續考察範圍和規模。如你所知，我們有 ABL。所以範圍規模或許剛好適合。我們的淨債務與調整後 EBITDA 比率為 0.3 倍。我們可以相對較快地實現這些目標。但正如我們之前提到的，規模對我們來說也是一個選擇，我們也在考慮其他選擇。因此，在考察產品線時，我們會同時檢視範圍和規模這兩個面向。

At this time, I am not showing any more questions in the queue. Thank you all for joining today's conference call. This concludes today's events. You all may disconnect.

目前，隊列中沒有其他問題。感謝大家參加今天的電話會議。今天的活動到此結束。各位可以斷開連接了。