Allegion plc (NYSE:ALLE) Q1 2023 Earnings Call Transcript

Mike Wagnes: We would always announce a price increase to the channel before we would on an earnings call. I would just say, if you look at our pricing and you try to model it for the back half of the year, you got to just take a look at how much price started to accelerate Q2, Q3 and Q4 last year, which is driving some of the reduction in the overall realization. But it’s important to note, you are still selling the product at the same price. So, it’s not like you are selling it for less dollar value, it’s just the incremental realization percentage will decline versus a more challenging comparable.

Brian Ruttenbur: Okay. Thank you. And then my next question is about Q2. I know you don’t normally comment specifically on a quarter, but maybe you can give us a bigger than a breadbox, smaller than a tractor trailer kind of guidance in the second quarter. In terms of versus Q1, should we be seeing revenues and gross margins at relatively similar levels to Q1 and Q2?

Mike Wagnes: Yes. I would really not – don’t really want to give specifics on a quarter per se, but a full year. The only thing I would say is, Q1 obviously a little higher than historically we would do in the first quarter. But I wouldn’t anticipate, don’t model something where the summer season is significantly less than Q1. We still have summers that tend to be pretty strong.

Brian Ruttenbur: Great. Thank you very much.

Operator: This concludes our question-and-answer session. And at this time, I would like to turn the conference back over to John Stone, President and CEO for any closing remarks.

John Stone: Okay. Well, thanks everyone for joining. Thank you for your questions. And again, I would like to reiterate our invitation to all of you for next week’s Investor and Analyst Day. I hope to see you all here in person, both for our management presentations and the tour through the tech center, very excited about that. And just to summarize, continue to see strength in Americas non-res and global electronic solutions. Very pleased, very happy with the Access Technologies acquisition and how that’s starting to perform, very happy and remain committed about our margin expansion, and we will continue that into the future, improvements in cash flow. And just overall, I am really proud of the entire Allegion team and our distribution partners to get us off to such a great start in 2023.

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