Pioneer Acquisition Performance
Q: Is Pioneer still dilutive and why the delay in turnaround?
A: Pioneer remains a very low contributor and is measurably dilutive to our EBITDA margins. The turnaround has been slower than planned but intentionally so, as we integrated their point-of-sale system with ours to create a combined system. Now fully integrated, we're confident Pioneer will become a strong performer next year.

Organic Growth and Market Share
Q: What's driving your organic sales outperformance?
A: Despite a weak repair and remodel market, we're gaining market share through consistent efforts over several years. Our organic volume growth is up 2%, outperforming a market that's down, and we expect this strength to continue into next year.

Branch Closures and Cost Management
Q: Are branch closures one-time or ongoing, and what's the impact?
A: We're consolidating 16 branches as a one-time catch-up to optimize our network. These closures, spread across regions and product lines, will help lower costs, but won't significantly drive SG&A leverage next year.

2025 Market Outlook
Q: Any early thoughts on market dynamics for 2025?
A: It's too early to make a call, but customers and suppliers are generally optimistic. Interest rates will be a key factor, but we're naturally optimistic about the future.

Pricing Dynamics and Margins
Q: How is pricing affecting your margins, and what about next year?
A: We faced a negative 8% price impact on agronomics and negative 2% on landscape products this quarter. We expect modest inflation next year, with suppliers indicating low single-digit price increases.

SG&A Management
Q: Will cost controls significantly improve SG&A leverage next year?
A: While branch consolidations help, they won't significantly drive SG&A leverage. We're tightly managing SG&A in the base business and will continue seeking opportunities to lower costs.

Gross Margin Decline
Q: What's behind the 50 basis point gross margin decline?
A: The decline is primarily due to the price-cost relationship with inventory costs and some aggressive market pricing. Lower seed prices reduced margins but boosted volumes due to price elasticity.

Repair and Remodel Market
Q: Any signs of improvement in repair and remodel activity?
A: No improvement yet; the higher end remains strong, but the middle range is soft due to high interest rates. We believe there's pent-up demand that could be unlocked if rates come down.

Maintenance Demand and Future
Q: Will maintenance demand tailwinds continue into 2025?
A: The maintenance market is steady, and we expect it to remain so. Normalized seed prices have restored volumes, and there's still pent-up demand in the remodel market.

Hurricane Impact Recovery
Q: Can you recoup hurricane-related sales losses next year?
A: We may recover some lost sales next year as landscaping repairs are often delayed. However, we don't expect a significant impact on supply chain dynamics or pricing.