ABM Industries Inc (ABM) 2023 Q2 法說會逐字稿

Greetings, and welcome to the ABM Industries Second Quarter 2023 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Paul Goldberg, Senior Vice President of Investor Relations for ABM Industries. Thank you. You may begin.

您好，歡迎參加 ABM Industries 2023 年第二季度收益電話會議。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我想將會議交給東道主 ABM Industries 投資者關係高級副總裁 Paul Goldberg 先生。謝謝。你可以開始了。

Good morning, everyone, and welcome to ABM's Second Quarter 2023 Earnings Call. My name is Paul Goldberg, and I'm the Senior Vice President of Investor Relations at ABM. With me today are Scott Salmirs, our President and Chief Executive Officer; and Earl Ellis, our Executive Vice President and Chief Financial Officer. Please note that earlier this morning, we issued our press release announcing our second quarter 2023 financial results. A copy of the release and an accompanying slide presentation can be found on our website abm.com.

大家早上好，歡迎參加 ABM 2023 年第二季度財報電話會議。我叫 Paul Goldberg，是 ABM 投資者關係高級副總裁。今天與我在一起的有我們的總裁兼首席執行官斯科特·薩爾米爾斯 (Scott Salmirs)；以及我們的執行副總裁兼首席財務官 Earl Ellis。請注意，今天上午早些時候，我們發布了新聞稿，宣布了 2023 年第二季度的財務業績。您可以在我們的網站 abm.com 上找到該新聞稿的副本以及隨附的幻燈片演示文稿。

After Scott and Earl's prepared remarks, we will host the Q&A session. But before we begin, I would like to remind you that our call and presentation today contain predictions, estimates and other forward-looking statements. Our use of the words estimate, expect and similar expressions are intended to identify these statements and they represent our current judgment of what the future holds. While we believe them to be reasonable, these statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially. These factors are described in the slide that accompanies our presentation as well as our filings with the SEC. During the course of this call, certain non-GAAP financial information will be presented. A reconciliation of historical non-GAAP numbers, the GAAP financial measures is available at the end of the presentation and on the company's website under the Investor tab.

在斯科特和厄爾準備好發言後，我們將主持問答環節。但在我們開始之前，我想提醒您，我們今天的電話會議和演示包含預測、估計和其他前瞻性陳述。我們使用“估計”、“期望”和類似表達方式的目的是為了識別這些陳述，它們代表了我們當前對未來的判斷。雖然我們認為它們是合理的，但這些陳述本質上存在風險和不確定性，可能導致我們的實際結果出現重大差異。這些因素在我們的演示文稿以及我們向 SEC 提交的文件隨附的幻燈片中進行了描述。在本次電話會議期間，將提供某些非 GAAP 財務信息。歷史非 GAAP 數據和 GAAP 財務指標的核對可在演示文稿末尾以及公司網站的“投資者”選項卡下找到。

And with that, I would like to now turn the call over to Scott.

現在，我想將電話轉給斯科特。

Thanks, Paul. Good morning, and thank you all for joining us today to discuss our second quarter results. ABM generated solid results in the second quarter, delivering 2.3% organic revenue growth and strong adjusted EBITDA growth. We achieved these results through our consistent focus on cost controls, implementing price escalations and driving organic growth in our manufacturing and Distribution, Aviation and Education segments. These factors more than offset the impacts from a still challenging labor market, continued supply chain constraints, lower work orders and the slow recovery of office occupancy for commercial real estate.

謝謝，保羅。早上好，感謝大家今天加入我們討論我們的第二季度業績。 ABM 在第二季度取得了穩健的業績，實現了 2.3% 的有機收入增長和強勁的調整後 EBITDA 增長。我們通過持續關注成本控制、實施價格升級以及推動製造和分銷、航空和教育領域的有機增長取得了這些成果。這些因素足以抵消仍然充滿挑戰的勞動力市場、持續的供應鏈限制、工作訂單減少以及商業房地產辦公室入住率緩慢恢復的影響。

Our financial and operational performance speaks to the resilience of our business model, our end market diversification, and most importantly, the talent and dedication of our team. In all, ABM generated second quarter revenue of $2 billion, with an adjusted EBITDA margin of 7.2%, which included the benefit of earnings from the prior period parking project as discussed last quarter. Despite a more challenging macroeconomic environment than we anticipated, we remain on target to achieve our 2023 financial goals.

我們的財務和運營業績體現了我們業務模式的彈性、終端市場的多元化，以及最重要的是我們團隊的才能和奉獻精神。總之，ABM 第二季度收入為 20 億美元，調整後 EBITDA 利潤率為 7.2%，其中包括上季度討論的前期停車項目的收益收益。儘管宏觀經濟環境比我們預期的更具挑戰性，但我們仍然致力於實現 2023 年的財務目標。

We continue to be focused on driving growth across the company and capturing our share of the many opportunities before us. In fact, for the first 6 months of 2023, we generated $918 million in new sales, up from $791 million last year. We also continue to invest in our future including our ELEVATE initiatives, which will enhance our operational efficiency and deliver an improved experience for both clients and our team members.

我們繼續專注於推動整個公司的增長，並抓住我們面前的眾多機會。事實上，2023 年前 6 個月，我們的新銷售額達到 9.18 億美元，高於去年的 7.91 億美元。我們還繼續投資於我們的未來，包括我們的 ELEVATE 計劃，這將提高我們的運營效率並為客戶和我們的團隊成員提供更好的體驗。

I'll now discuss the demand environment for each of our industry groups. Let's begin with B&I. office occupancy rates in the second quarter remained at relatively stable levels at approximately 50% on a blended basis. Although commercial office space remains fairly well occupied Tuesday through Thursday, many employees continue to work remotely on Monday and Friday. This trend is likely to continue as employers accommodate remote and hybrid work. This pattern of office usage limits demand for certain higher-margin work orders like carpet cleaning, freight elevator service and large gathering cleanups, which are largely driven by office density.

我現在將討論我們每個行業群體的需求環境。讓我們從 B&I 開始。第二季度寫字樓混合入住率保持在約 50% 的相對穩定水平。儘管週二至週四商業辦公空間仍然相當繁忙，但許多員工在周一和周五繼續遠程工作。隨著雇主適應遠程和混合工作，這種趨勢可能會持續下去。這種辦公室使用模式限制了對某些高利潤工作訂單的需求，例如地毯清潔、貨運電梯服務和大型集會清理，而這些工作訂單在很大程度上是由辦公室密度驅動的。

As a result of the reduction in office density, we are beginning to see a consolidation of office space in metro markets as clients reduce their footprint when their leases expire. Although we have not yet experienced a resulting contraction and scope of work, we anticipate that further increases in vacancy rates could create additional pressures on our business. However, we feel that we're very well positioned given our commercial real estate profile, which is heavily concentrated within Class A newer properties. Although Class A buildings are still impacted, it's to a much lesser degree than Class B and Class C properties.

由於辦公室密度的降低，我們開始看到地鐵市場的辦公空間進行整合，因為客戶在租約到期時會減少佔地面積。儘管我們尚未經歷由此產生的工作範圍的收縮，但我們預計空缺率的進一步增加可能會給我們的業務帶來額外的壓力。然而，鑑於我們的商業房地產概況，我們認為我們處於非常有利的位置，該概況主要集中在 A 級較新的房產中。儘管 A 級建築仍然受到影響，但其程度比 B 級和 C 級建築要小得多。

We also believe that as tenants migrate towards higher quality buildings, it will stabilize on our multi-tenant portfolio. Additionally, a sizable portion of our commercial real estate exposure is an engineering, which tends to be more stable as HVAC and electrical systems need to be maintained regardless of occupancy density.

我們還相信，隨著租戶轉向更高質量的建築，我們的多租戶投資組合將會穩定下來。此外，我們商業房地產的很大一部分是工程，由於無論佔用密度如何，暖通空調和電氣系統都需要維護，因此工程往往更加穩定。

Moving to Aviation. Activity in the leisure and business travel markets, including related parking and transportation has essentially returned to pre-pandemic levels. Accordingly, as we go forward, we anticipate our aviation revenue growth will be reflective of the overall travel market growth rate complemented by new business opportunities. In fact, we recently won a multimillion dollar expansion of passenger transportation services at 2 major U.K. airports. We also expect continued growth in our ABMVantage parking solution which enhances revenue for clients and improves the travel experience.

轉向航空。休閒和商務旅行市場的活動，包括相關的停車和交通，已基本恢復到大流行前的水平。因此，隨著我們的前進，我們預計我們的航空收入增長將反映整體旅遊市場的增長率，並輔之以新的商機。事實上，我們最近贏得了數百萬美元的英國兩個主要機場客運服務擴建項目。我們還預計 ABMVantage 停車解決方案將持續增長，從而增加客戶收入並改善旅行體驗。

Demand in manufacturing and distribution continues to be solid, benefiting not only from expansion within existing logistics and e-commerce clients but also from new business and new end markets. For example, we added over $30 million in new contracts in the semiconductor market in the second quarter alone. We also saw growth with a leading aerospace company. further highlighting our successful efforts to broaden our client base in attractive end markets. We expect revenue growth in our M&D segment to remain on pace for the remainder of the year.

製造和分銷的需求持續強勁，不僅受益於現有物流和電子商務客戶的擴張，還受益於新業務和新的終端市場。例如，僅第二季度我們就在半導體市場新增了超過 3000 萬美元的新合同。我們還看到一家領先的航空航天公司的增長。進一步凸顯我們在有吸引力的終端市場擴大客戶群的成功努力。我們預計 M&D 部門的收入增長將在今年剩餘時間內保持增長。

In Education, the addition of sizable new clients in the fourth quarter of 2022 and new business wins in this fiscal year has helped drive mid-single-digit organic revenue growth in this segment. We have a strong pipeline of new business opportunities, and I'm confident ABM will continue our positive growth trajectory given our competitive positioning. From a margin perspective, segment margin remains above pre-pandemic levels, and we anticipate that further labor market normalization will support the margin progress we've achieved.

在教育領域，2022 年第四季度新增大量客戶以及本財年贏得的新業務幫助推動了該領域中個位數的有機收入增長。我們擁有大量新商機，鑑於我們的競爭地位，我相信 ABM 將繼續保持積極的增長軌跡。從利潤率的角度來看，分部利潤率仍高於大流行前的水平，我們預計勞動力市場的進一步正常化將支持我們所取得的利潤率進步。

Moving to Technical Solutions. The demand environment for EV charging infrastructure and microgrids remains positive as our ATS backlog exceeds $440 million. Furthermore, after a slow start to the year, hampered by macroeconomic concerns, market conditions are slowly improving for our Infrastructure Solutions business as evidenced by a significant contract win with a school district in Western Pennsylvania, which includes upgrades for lighting and HVAC as well as multiple building enhancements.

轉向技術解決方案。由於我們的 ATS 積壓超過 4.4 億美元，電動汽車充電基礎設施和微電網的需求環境仍然樂觀。此外，在今年開局緩慢、受宏觀經濟擔憂影響之後，我們的基礎設施解決方案業務的市場狀況正在緩慢改善，與賓夕法尼亞州西部一個學區贏得的重大合同就證明了這一點，其中包括照明和暖通空調的升級以及多項建築增強。

Turning to eMobility. As we discussed on our last call, we expect the pace of EV charger installations to accelerate in the second half of the year as we begin to deliver on several new programs, including one for a large automotive dealer network. RavenVolt generated approximately $30 million in second quarter revenue, completing multiple projects, including the installation of power resiliency systems to 2 major retailers and a multinational consumer goods company. Similar to EV, we expect growth to accelerate in the back half of this year as long-awaited materials begin to arrive. Overall, we continue to be excited about the long-term outlook for ATS and believe we're at the beginning of what will be a multiyear runway of strong growth.

轉向電動汽車。正如我們在上次電話會議中所討論的那樣，隨著我們開始實施多項新計劃（包括針對大型汽車經銷商網絡的計劃），我們預計電動汽車充電器的安裝速度將在今年下半年加快。 RavenVolt 第二季度收入約為 3000 萬美元，完成了多個項目，包括為兩家主要零售商和一家跨國消費品公司安裝電源彈性系統。與電動汽車類似，隨著期待已久的材料開始到達，我們預計今年下半年增長將加速。總體而言，我們仍然對 ATS 的長期前景感到興奮，並相信我們正處於多年強勁增長的開端。

In fact, to support this growth opportunity, we recently announced our plan to construct an electrification center that will establish ABM as the clear leader in electrification infrastructure turn-key solutions. The planned facility in the Atlanta area will house multiple solutions serving the eMobility, power resiliency and electrification sectors, creating first of it's kind EV ecosystem hub.

事實上，為了支持這一增長機會，我們最近宣布了建設電氣化中心的計劃，該中心將使 ABM 成為電氣化基礎設施交鑰匙解決方案領域的明確領導者。規劃中的亞特蘭大地區設施將容納服務於電動汽車、電力彈性和電氣化領域的多種解決方案，打造首個此類電動汽車生態系統中心。

Turning to ELEVATE. We made significant headway on our planned initiatives during the second quarter, including the initial successful deployment of our cloud-based ERP system and 15 integrated boundary systems. Our initial implementation focused on our Education segment and the results have been more than encouraging. As we progress forward, future implementations will move through each industry segment on a programmed and managed pace as we leverage our collective learning and experience.

轉向“提升”。第二季度我們的計劃舉措取得了重大進展，包括初步成功部署基於雲的 ERP 系統和 15 個集成邊界系統。我們最初的實施重點是教育領域，結果非常令人鼓舞。隨著我們的進步，未來的實施將在我們利用集體學習和經驗的情況下，按照計劃和管理的速度在每個行業領域進行。

In addition, we extended the reach of our workforce productivity and optimization tool, which provides our teams with advanced analytics for productivity levels across their portfolios. This capability has been critical for optimizing labor usage in our commercial real estate markets. We are also approaching the pilot launch of a new mobile application for our frontline team members, a key digital enabler for the ELEVATE program.

此外，我們還擴展了員工生產力和優化工具的範圍，為我們的團隊提供了針對其投資組合生產力水平的高級分析。這種能力對於優化我們商業房地產市場的勞動力使用至關重要。我們還準備為一線團隊成員試點推出一款新的移動應用程序，這是 ELEVATE 計劃的關鍵數字推動者。

Lastly, we continue to make progress on our ESG journey. For the first time, ABM has been named to the DiversityInc list of noteworthy companies This, among many other distinctions and awards reflects our culture and our drive to lead away in DE&I. I couldn't be proud of where our company is heading despite the macroeconomic headwinds and the challenges in commercial real estate. The mixture of our end markets the resiliency of our culture and the extraordinary talent of our teammates will allow us to continue on our accelerated path.

最後，我們在 ESG 之旅上繼續取得進展。 ABM 首次被列入 DiversityInc 值得關注的公司名單，這與許多其他榮譽和獎項一起反映了我們的文化以及我們在 DE&I 領域領先的動力。儘管面臨宏觀經濟逆風和商業房地產的挑戰，但我無法為我們公司的發展方向感到自豪。我們的終端市場、我們文化的彈性和我們隊友的非凡才能的結合將使我們能夠繼續加速前進。

Now I'll turn it over to Earl for the financials.

現在我會把它交給厄爾來處理財務事宜。

Thank you, Scott, and good morning, everyone. For those of you following along with our earnings presentation, please turn to Slide 5. Second quarter revenue increased 4.5% to $2 billion, comprised of organic revenue growth of 2.3% and growth from acquisitions of 2.2%.

謝謝你，斯科特，大家早上好。對於那些關注我們收益演示的人，請參閱幻燈片 5。第二季度收入增長 4.5%，達到 20 億美元，其中有機收入增長 2.3%，收購增長 2.2%。

Moving on to Slide 6. Net income in the second quarter was $51.9 million or $0.78 per diluted share, up 6% and 8%, respectively, as compared to last year. The increase in GAAP net income was driven by higher income from operations, especially in our Aviation segment and tight expense controls partially offset by higher interest expense, labor costs and lower volume of higher-margin work orders.

轉到幻燈片 6。第二季度淨利潤為 5190 萬美元或稀釋後每股 0.78 美元，分別比去年同期增長 6% 和 8%。公認會計原則淨利潤的增長是由於運營收入增加（尤其是航空部門）以及嚴格的費用控制所推動的，但利息費用、勞動力成本的增加和高利潤工作訂單數量的減少部分抵消了嚴格的費用控制。

Adjusted net income was flat at $60.2 million, adjusted earnings per diluted share was $0.90, up 1% from the prior year period. Adjusted net income and adjusted EPS primarily reflects higher income from operations and effective cost controls offset by higher interest expense. Adjusted EBITDA increased 15% over the prior year to $137 million, and adjusted EBITDA margin was 7.2% versus 6.5% last year. This performance was boosted by the recognition of revenue connected with the previously mentioned Aviation parking project as associated expenses were recorded in prior periods. Excluding the impact from the parking project, adjusted EBITDA was $124.4 million, up 5% over last year, and adjusted EBITDA margin was 6.6%.

調整後淨利潤持平於 6020 萬美元，調整後稀釋每股收益為 0.90 美元，較上年同期增長 1%。調整後淨利潤和調整後每股收益主要反映了較高的運營收入和有效的成本控制，但被較高的利息支出所抵消。調整後 EBITDA 較上年增長 15%，達到 1.37 億美元，調整後 EBITDA 利潤率為 7.2%，去年為 6.5%。這一業績得益於確認與之前提到的航空停車項目相關的收入，因為相關費用已記錄在前期。剔除停車項目的影響，調整後 EBITDA 為 1.244 億美元，比去年增長 5%，調整後 EBITDA 利潤率為 6.6%。

Now turning to our segment results beginning on Slide 7. B&I revenues declined 0.5% year-over-year to $1 billion. Organic revenue declined 2%, mainly reflecting a lower volume of work orders, including disinfection versus the prior year and expected attrition of certain client contracts from the Able acquisition. Operating profit in B&I decreased slightly to $76.2 million, and operating margin was 7.6%, essentially flat with the prior year.

現在轉向我們從幻燈片 7 開始的部門業績。B&I 收入同比下降 0.5%，至 10 億美元。有機收入下降 2%，主要反映工作訂單量減少，包括與上一年相比的消毒工作以及 Able 收購導致的某些客戶合同的預期損耗。 B&I 的營業利潤小幅下降至 7620 萬美元，營業利潤率為 7.6%，與上年基本持平。

Aviation revenue increased 22% to $227.2 million, marking the eighth consecutive quarter of year-over-year revenue growth. This improvement was driven by the recognition of the previously mentioned parking project revenue as well as increased leisure and business airline traffic, along with related growth in parking activity. Aviation's operating profit was $23.6 million, including $12.6 million of parking project earnings versus $9.6 million in the prior period. Margin was 10.4% compared to 5.2% last year. Adjusting for the parking project, operating profit was $11 million and margin was 5.1%.

航空收入增長 22%，達到 2.272 億美元，連續第八個季度實現收入同比增長。這一改善是由於對前面提到的停車項目收入的認可以及休閒和商務航空運輸量的增加以及停車活動的相關增長推動的。航空業的營業利潤為 2,360 萬美元，其中包括 1,260 萬美元的停車項目收入，而上一期間為 960 萬美元。利潤率為 10.4%，而去年為 5.2%。調整停車項目後，營業利潤為 1100 萬美元，利潤率為 5.1%。

Turning to Slide 8. Manufacturing and distribution revenue grew 5% to $373.2 million, reflecting favorable market demand and expansion with clients in the life sciences and semiconductor market. Operating profit decreased 3% to $40.8 million, and operating margin declined 80 basis points to 10.9%. The decreases in operating profit and margin primarily reflects labor cost inflation and changes in mix. Education revenue increased 6% to $216.7 million, benefiting from the addition of new clients in the fourth quarter of fiscal 2022.

轉向幻燈片 8。製造和分銷收入增長 5%，達到 3.732 億美元，反映出良好的市場需求以及生命科學和半導體市場客戶的擴張。營業利潤下降 3%，至 4080 萬美元，營業利潤率下降 80 個基點，至 10.9%。營業利潤和利潤率的下降主要反映了勞動力成本上漲和結構變化。受益於 2022 財年第四季度新客戶的增加，教育收入增長 6% 至 2.167 億美元。

Education operating profit was $11.8 million, essentially flat versus the prior year period while our margin was down slightly to 5.4%. Technical Solutions revenue grew 15% to $168.4 million, driven by the contribution from RavenVolt. Organic revenue declined 6%, largely due to the timing of large EV charger installation programs, which are weighted to the second half of the year and the delay of some infrastructure solution projects. Backlog in ATS is over $440 million, supporting our expectations for a strong back half of the year.

教育運營利潤為 1,180 萬美元，與上年同期基本持平，而我們的利潤率略有下降至 5.4%。受 RavenVolt 貢獻的推動，技術解決方案收入增長 15%，達到 1.684 億美元。有機收入下降 6%，主要是由於大型電動汽車充電器安裝計劃的時間安排（加權到今年下半年）以及一些基礎設施解決方案項目的延遲。 ATS 的積壓訂單超過 4.4 億美元，支持了我們對今年下半年強勁增長的預期。

Of note, RavenVolt generated nearly $30 million in revenue in the second quarter, aided by the receipt of delayed materials. ATS operating profit was $10.2 million, and margin was 6% compared to operating profit of $10.6 million and margin of 7.2% last year. The decreases in margin and profit were largely driven by changes in service mix and the amortization of intangibles related to the RavenVolt acquisition.

值得注意的是，在收到延遲材料的幫助下，RavenVolt 在第二季度創造了近 3000 萬美元的收入。 ATS 營業利潤為 1,020 萬美元，利潤率為 6%，而去年營業利潤為 1,060 萬美元，利潤率為 7.2%。利潤率和利潤的下降主要是由於服務組合的變化以及與 RavenVolt 收購相關的無形資產攤銷造成的。

Moving on to Slide 9. We ended the second quarter with total debt of $1.5 billion, including $58.6 million in standby letters of credit, resulting in a total debt to pro forma adjusted EBITDA ratio of 2.6x. At the end of Q2, we had available liquidity of $503.2 million, including cash and cash equivalents of $71.2 million. Free cash flow in the second quarter was $16 million, and we expect a solid back half of the year in terms of free cash generation. Interest expense was $21.1 million in the second quarter, up $13 million from the prior year period and up over $1 million sequentially from Q1. The increase was due to significantly higher interest rates as well as year-over-year increase in total debt.

轉向幻燈片 9。第二季度結束時，我們的總債務為 15 億美元，其中包括 5,860 萬美元的備用信用證，導致總債務與預計調整後 EBITDA 的比率為 2.6 倍。截至第二季度末，我們的可用流動資金為 5.032 億美元，其中現金和現金等價物為 7120 萬美元。第二季度的自由現金流為 1600 萬美元，我們預計今年下半年的自由現金流將保持穩定。第二季度利息支出為 2110 萬美元，比去年同期增加 1300 萬美元，比第一季度連續增加超過 100 萬美元。這一增長是由於利率大幅上升以及總債務同比增加。

Now let's move on to our full year fiscal 2023 outlook, as shown on Slide 10. We now expect GAAP EPS to be in the range of $2.52 to $2.72, up $0.09 from our prior outlook, driven by a benefit from changes in items impacting comparability, primarily related to the fair value of contingent consideration. Our outlook for the adjusted EPS remains unchanged at $3.40 to $3.60. Interest expense is now expected to be around $80 million for the full year, reflecting recent Fed actions and the forward yield curve. This forecast is about $6 million above the high end of the previously estimated range. Our tax rate before discrete items is anticipated to be between 29% and 30%. And as mentioned last quarter, we expect to grow full year adjusted EBITDA at a mid-single-digit rate.

現在讓我們繼續展望 2023 財年全年前景，如幻燈片 10 所示。我們現在預計 GAAP 每股收益將在 2.52 美元至 2.72 美元之間，比之前的預期上漲 0.09 美元，這是由於影響可比性的項目變化帶來的好處，主要與或有對價的公允價值有關。我們對調整後每股收益的展望保持在 3.40 美元至 3.60 美元不變。目前預計全年利息支出約為 8000 萬美元，反映了美聯儲近期的行動和遠期收益率曲線。這一預測比先前估計範圍的上限高出約 600 萬美元。我們不計離散項目的稅率預計在 29% 至 30% 之間。正如上季度提到的，我們預計全年調整後 EBITDA 將以中個位數的速度增長。

Additionally, we are increasing the low end of the range for adjusted EBITDA margin by 10 basis points. and now expect it to be between 6.5% and 6.8% for the full year. We now expect full year 2023 free cash flow to be in the range of $240 million to $270 million before the final installment of our CARES Act payment of $66 million, which was made in Q1 and combined integration and elevate cost of approximately $75 million to $80 million. This represents a $30 million decrease from our prior forecast, largely driven by expected working capital needs to support growth in our ATS segment in the second half and higher interest expense. With respect to the cadence of quarterly adjusted EPS, we expect approximately 45% to 50% of full year adjusted earnings per share to be generated in the first half of the fiscal year. consistent with our prior guidance. We anticipate Q3 adjusted EPS will not be materially different from Q2 2023.

此外，我們還將調整後 EBITDA 利潤率範圍的下限提高了 10 個基點。現在預計全年增長率將在 6.5% 至 6.8% 之間。我們現在預計 2023 年全年自由現金流將在 2.4 億至 2.7 億美元之間，然後再支付第一季度支付的 6,600 萬美元的 CARES 法案最後一筆款項，合併整合成本將增加約 7,500 萬至 80 美元百萬。這比我們之前的預測減少了 3000 萬美元，主要是由於支持下半年 ATS 業務增長的預期營運資金需求以及更高的利息支出。就季度調整後每股收益的節奏而言，我們預計本財年上半年將產生約 45% 至 50% 的全年調整後每股收益。與我們之前的指導一致。我們預計第三季度調整後每股收益將與 2023 年第二季度不會有重大差異。

With that, let me turn it back to Scott for closing comments.

說到這裡，讓我把它轉回給斯科特以供結束評論。

Thanks, Earl. In late 2021, around the time we announced our initial ELEVATE targets, the average U.S. inflation rate for the full year 2021 was 4.7%. The 10-year T-bill, was approximately 1.5%, and the unemployment rate has trended down to 4% from the pandemic high of 15%. Today, the 10-year T-bill rate is over 200 basis points higher Inflation peaked at 9% in 2022 and is currently close to 5%. And the job market for blue collar labor is as challenging as it has ever been. Despite these headwinds, we've delivered on our financial goals, expanded our business and service offerings and achieved important progress towards our 2025 target.

謝謝，厄爾。 2021 年底，也就是我們宣布最初的 ELEVATE 目標的時候，美國 2021 年全年的平均通脹率為 4.7%。 10 年期國債約為 1.5%，失業率已從疫情高點 15% 下降至 4%。如今，10 年期國庫券利率上漲了 200 個基點以上。通貨膨脹率在 2022 年達到 9% 的峰值，目前接近 5%。藍領勞動力的就業市場一如既往地充滿挑戰。儘管存在這些不利因素，我們仍然實現了財務目標，擴大了業務和服務範圍，並在實現 2025 年目標方面取得了重要進展。

Today, ABM is stronger and better positioned than ever before. Our success reflects our resilient business model, the benefits from our ELEVATE investments and consistent execution by the ABM team. As we move forward, I'm confident in our ability to build value for our stakeholders as we work tirelessly towards achieving our goals, underpinned by the strength of our core business ABM continues to evolve into a higher-growth, higher-margin facility solution provider.

如今，ABM 比以往任何時候都更加強大、地位更加優越。我們的成功反映了我們富有彈性的業務模式、ELEVATE 投資的收益以及 ABM 團隊的一貫執行力。隨著我們不斷前進，我對我們為利益相關者創造價值的能力充滿信心，因為我們不懈地努力實現我們的目標，在我們核心業務實力的支撐下，ABM 不斷發展成為更高增長、更高利潤的設施解決方案提供者。

So with that, let's take some questions.

那麼，讓我們提出一些問題。

(Operator Instructions) Our first question comes from the line of Sean Eastman with KeyBanc Capital Markets.

（操作員說明）我們的第一個問題來自 KeyBanc Capital Markets 的 Sean Eastman。

So I just wanted to start on ATS. It sounds like RavenVolt is blowing and going now. It sounds like the EV charging side on pace for a second half ramp. I just wanted to round that out with a discussion on the bundled energy solutions piece and just how customer decision-making is trending in light of the weak macro conditions.

所以我只想開始使用 ATS。聽起來 RavenVolt 正在風起雲湧。聽起來電動汽車充電方面正在加快下半年的步伐。我只是想通過討論捆綁能源解決方案以及在疲軟的宏觀環境下客戶決策的趨勢來完善這一點。

Yes. No, that's a great question, Sean. Look, it's still slow, probably slower than we'd like, but it's not a reflection of our market share or sales pipeline or even the viability of the offering. It's more about the fact that what we've seen just across the board, some clients are in pause mode right now, right? The economics get a little bit more challenging in that segment because of interest rates. But we just won -- I mentioned in my opening remarks, we won a really nice job in Western Pennsylvania. And the pipeline is strong.

是的。不，這是一個很好的問題，肖恩。看，它仍然很慢，可能比我們希望的要慢，但這並不能反映我們的市場份額或銷售渠道，甚至不能反映產品的可行性。更重要的是，我們全面看到，一些客戶現在處於暫停模式，對吧？由於利率的原因，該領域的經濟變得更具挑戰性。但我們剛剛贏了——我在開場白中提到，我們在賓夕法尼亞州西部贏得了一份非常好的工作。而且管道很強大。

So I think for us, it's waiting for clients to pull the trigger because it's upgrades that they know they need because if you look at the core of it, right, you're retrofitting a facility that needs retrofitting, right? So it's a question of getting the school board together and giving the high sign to pull the trigger. So we're as confident as ever. It's just a little bit more on the delay side, but we're hoping the back half will be stronger. And that's a nice thing about ATS because we're still diversified. And in addition to the bundled energy solutions, as you point out, we have the microgrid solution now with RavenVolt, our EV is starting to ramp up. And we do have a core electrical and mechanical business on top of that, that we don't talk about a lot, but that's also part of the underpinning. So it's nice to have diversification in that segment.

所以我認為對我們來說，它正在等待客戶扣動扳機，因為這是他們知道自己需要的升級，因為如果你看看它的核心，對吧，你正在改造一個需要改造的設施，對嗎？因此，問題在於讓學校董事會聚集在一起，並發出高調的信號來扣動扳機。所以我們一如既往地充滿信心。只是延遲方面多了一點，但我們希望後半部分會更強。這對於 ATS 來說是一件好事，因為我們仍然是多元化的。正如您所指出的，除了捆綁能源解決方案之外，我們現在還擁有 RavenVolt 的微電網解決方案，我們的電動汽車也開始加速發展。除此之外，我們確實還有核心的電氣和機械業務，我們對此談論不多，但這也是基礎的一部分。因此，在該領域實現多元化是件好事。

Okay. And then I guess maybe just to finish it off on ATS. I mean where should the margins be? Obviously, the first half, we've had supply chain. We've had kind of a project timing, air pocket. I mean, I'm just trying to get an expectation for where we should be run rating when everything is up on planed for ATS.

好的。然後我想也許只是用 ATS 來完成它。我的意思是邊距應該在哪裡？顯然，上半年我們已經有了供應鏈。我們有一個項目時間安排，空氣袋。我的意思是，我只是想了解當 ATS 的一切都按計劃進行時我們應該運行的評級。

Yes. Historically, when it's humming, it's high single digit, right? And there's no reason that it won't get back to that. I think it's like that higher-margin stuff, which is the bundled energy solutions and the microgrids are the ones that just haven't kicked in yet, right? And even sean, on EV, which we said is lower margin. That's really because we've been playing in the dealership market which is like Onesie-twosie , like if you have a large-scale contract with an automaker like BMW, you're putting 2 or 3 in per dealership. It's not the scale you want, we're moving more to a fleet orientation where we can go to a facility and put in 100 charges and get the scale. So that's part of our ramp-up strategy as well. So I'm confident over time we'll squarely get back into that high single-digit margin range.

是的。從歷史上看，當它嗡嗡作響時，它是高個位數，對吧？沒有理由不回到那個狀態。我認為這就像利潤率較高的東西，即捆綁能源解決方案，而微電網只是尚未啟動的解決方案，對嗎？甚至肖恩，在電動汽車上，我們說這是較低的利潤。這實際上是因為我們一直在像 Onesie-twosie 一樣的經銷商市場中發揮作用，就像如果您與寶馬這樣的汽車製造商簽訂了一份大規模合同，您將在每個經銷商中投入 2 或 3 個。這不是您想要的規模，我們正在更多地轉向車隊方向，我們可以前往某個設施並充入 100 次費用並獲得規模。所以這也是我們提升戰略的一部分。因此，我相信隨著時間的推移，我們將完全回到高個位數的利潤範圍。

Okay. Got you. And then one more, just relative to the work order dynamic, I feel like over the past 2 years, we've been anchored from -- in terms of like work orders going from pandemic highs down to normalized. But now we're talking about lighter vacancy rates and maybe that normalized work order level having some downside. How should we think about that, Scott, and whether there's risk to margins around a step down to below normal work orders. What have we seen historically there?

好的。明白你了。還有一點，就工作訂單的動態而言，我覺得在過去的兩年裡，我們的工作訂單從大流行高點降至正常化。但現在我們談論的是較低的空置率，也許正常化的工作訂單水平有一些負面影響。斯科特，我們應該如何考慮這一點，以及降低到低於正常工作訂單的利潤是否存在風險。歷史上我們看到了什麼？

Yes. So look, I think we're getting back down to pre-pandemic levels and that's really a reflection right now of hybrid work, right? So here's the way to think about, maybe this will give you some clarity, right? When you think about work orders, right, it ranges from people calling for the freight elevator because they're getting bunch of deliveries. They're having a birthday celebration. So they want 2 porters to come up because they're having a pizza party, right? It's spotting on staying carpets, right? So all those onetime things, and now when people are in the office 3 days a week instead of 5 days a week, you get less of those calls on the Mondays and Fridays and we were still stabilized during hybrid at a higher rate than we were pre-pandemic, and we're really encouraged by that.

是的。所以看，我認為我們正在回到大流行前的水平，這確實是混合工作現在的反映，對吧？所以這是思考的方式，也許這會讓你更清晰，對吧？當你想到工單時，對吧，它的範圍包括人們因為收到大量交貨而要求貨運電梯。他們正在慶祝生日。所以他們想要 2 個搬運工來，因為他們要舉辦披薩派對，對吧？地毯上有斑點，對嗎？因此，所有這些一次性的事情，現在當人們每週 3 天而不是每週 5 天在辦公室時，週一和周五接到的電話就會減少，而且我們在混合期間仍然保持穩定，比率高於以前。大流行前，我們對此感到非常鼓舞。

I think the overlay now that's brought it down incrementally more is just the state of the economy. People are watching what they're spending. So I think that's a little bit of an overhang. So if I were to look into the future when we have a recovery, unknown to bet that work orders will pop back up again and pop back up again at higher than pre-pandemic levels. So I think we have this temporary double overhang now. But just to round out the question, I do not think on a percentage basis, we're going to see much more deterioration. Now -- volumetrically maybe because revenues can be compressed a little bit, but that will be on dollars, not margin percentage. I feel like we're kind of -- where we are now is kind of pretty stabilized.

我認為現在導致其逐步下降的疊加因素只是經濟狀況。人們正在關注他們的支出。所以我認為這有點懸而未決。因此，如果我展望未來，當我們復甦時，不確定工單是否會再次反彈，並再次以高於大流行前的水平反彈。所以我認為我們現在有這個暫時的雙懸垂。但為了解決這個問題，我認為從百分比來看，我們不會看到更多的惡化。現在——從數量上看，可能是因為收入可以稍微壓縮一點，但這將是按美元計算，而不是按利潤率計算。我覺得我們現在的處境相當穩定。

Our next question comes from the line of Justin Hauke with Baird.

我們的下一個問題來自賈斯汀·豪克和貝爾德的對話。

I wanted to ask just to kind of big picture clarify some of the guidance moving pieces because with the margin moving up a little bit despite the -- and the EPS held despite the incremental interest expense. Just the moving pieces on that. What was a little bit better and a little bit weaker. And maybe specifically, the corporate cost control, which it seems like that's continued to kind of come in a little bit better than expected. So maybe just the outlook for what you're looking at for corporate for the back half of the year.

我想問的只是為了澄清一些指導性的變化，因為儘管利潤率略有上升，儘管利息支出增加，但每股收益仍保持不變。只是其中的移動部分。什麼是好一點，什麼弱一點。也許具體來說，企業成本控制似乎繼續比預期好一點。因此，也許這只是您對今年下半年企業的展望。

Sure. Absolutely. I'll take that one. So when we look at kind of what happened throughout quarter 2, we continue to see some headwinds in the shape of lower work orders, which actually has had a dip in the margin as well as continued pressure in the labor market. So we've continued to see labor inflation, which good news is we've been able to offset a large majority of that through price escalations. When we see -- looked at the quarter, we also had the flow-through from last year's parking project, that was able to offset that. And so when you look at the call up in margins, part of that was actually the flow-through that we actually got from the previously deferred parking.

當然。絕對地。我會接受那個。因此，當我們觀察第二季度發生的情況時，我們繼續看到一些不利因素，例如工作訂單減少，這實際上導致了利潤率下降以及勞動力市場的持續壓力。因此，我們繼續看到勞動力通脹，好消息是我們已經能夠通過價格上漲抵消大部分通脹。當我們看到 - 看看這個季度時，我們還得到了去年停車項目的流量，這能夠抵消這一點。因此，當您查看利潤率中的調用時，其中一部分實際上是我們從之前的延遲停車中實際獲得的流量。

So what we feel really good about is that in spite of the continued challenges that we're seeing in margins, we're still able -- so if you actually even back out the flow-through of the parking project from last year, our margins for the quarter were 6.6%. And so in spite of the continued challenges that we're actually seeing, we feel really, really pleased that we're still being able to deliver within the midpoint of our range.

因此，我們真正感到滿意的是，儘管我們在利潤方面面臨持續的挑戰，但我們仍然有能力 - 因此，如果你實際上取消去年停車項目的流量，我們的該季度的利潤率為 6.6%。因此，儘管我們實際上看到了持續的挑戰，但我們仍然能夠在我們範圍的中點內交付，我們感到非常非常高興。

Okay. And just the corporate expense, maybe like a dollar run rate, what you're kind of thinking in the back half of the year?

好的。只是公司費用，也許就像美元運行率一樣，你在今年下半年有什麼想法？

Yes. So I would say that when we look at corporate expenses, I would say that the -- over the -- you expect an average of about $60 million in corporate expenses, excluding kind of like the items impacting (inaudible) yes.

是的。所以我想說，當我們考慮公司開支時，我想說的是，你預計公司開支平均約為 6000 萬美元，不包括類似影響（聽不清）的項目，是的。

Great. And then I guess the second question, just on the parking segment. I mean even backing out the onetime here your organic growth rates there have been really strong. And it kind of sounded like in your prepared remarks that maybe you're expecting that to kind of decelerate when you talked about more market trends. I just want to understand what you mean by that and what you're thinking about for kind of the growth rate of that segment? What is the market trend for the back half of the year?

偉大的。然後我猜第二個問題，就是關於停車部分。我的意思是，即使放棄曾經在這裡的有機增長率也非常強勁。在您準備好的講話中，聽起來好像您預計當您談論更多市場趨勢時，這種情況會有所放緩。我只是想了解您的意思以及您對該細分市場的增長率有何看法？下半年市場走勢如何？

Sure. I mean look, I think generally speaking, like from an industry standpoint, I think parking revenues are kind of stable now, right? Like hybrid work is in place. So it is what it is. The -- because like for us, we have our parking business in 2 kind of key segments, the real estate side, Commercial real estate and then on Aviation. And I think in both of those segments, We are pretty stable, right? So I think it's more normalized now. But what we're excited about is we have our Vantage parking offering, which is something that's really -- it's a new technology. It's insightful that works to help give insights to clients on revenue management and so for us, it's about this new productized offering that's going to help us accelerate it. So we're hoping that in the parking segment, not only do we continue to grow, but hopefully a little bit ahead of the market because of some of the innovative stuff we're doing. But I would say walking that back in large measure we're kind of out stabilization in the parking business as an industry.

當然。我的意思是，我認為一般來說，從行業的角度來看，我認為停車收入現在有點穩定，對吧？就像混合工作已經到位一樣。所以事情就是這樣。因為就像我們一樣，我們的停車業務主要集中在兩個關鍵領域：房地產方面、商業房地產方面，然後是航空方面。我認為在這兩個領域，我們都相當穩定，對吧？所以我認為現在已經更加正常化了。但令我們興奮的是我們擁有 Vantage 停車服務，這確實是一項新技術。它具有洞察力，有助於為客戶提供收入管理方面的見解，因此對我們來說，這種新的產品化產品將幫助我們加速實現這一目標。因此，我們希望在停車領域，我們不僅能夠繼續增長，而且希望由於我們正在做的一些創新工作而領先於市場。但我想說的是，在很大程度上，我們的停車業務作為一個行業已經趨於穩定。

And I apologize. I meant the Aviation segment and the adjusted for the parking item, your growth rate there has been in the high single digits. I guess what I was more asking about is what is your expectation for the deceleration from that? Or why was it so strong in the first half? Is that just kind of the recovery in aviation volumes and you're saying those are recovered and they should kind of moderate to a more low single digit? Or.

我道歉。我的意思是航空部門和停車項目的調整後，你的增長率一直處於高個位數。我想我更想問的是您對由此帶來的減速有何期望？或者說為什麼上半場這麼強？這只是航空運輸量的複蘇嗎？你是說航空運輸量已經恢復，並且應該溫和到更低的個位數？或者。

That's right. That's exactly right. Travel has been well, you know, right? Anything around travel and leisure has been sell up. So I think at this point, and I think we did say a little bit in the prepared remarks, we feel like we are back to pre-pandemic levels and maybe even then some -- we do think there's a bunch of people that are catching up, right, in terms of travel. So I think you'll see more of a stabilization but still nice steady growth.

這是正確的。完全正確。旅行一直很好，你知道，對吧？與旅遊和休閒相關的任何東西都被賣光了。所以我認為，在這一點上，我認為我們確實在準備好的發言中說了一點，我們覺得我們回到了大流行前的水平，甚至可能是一些——我們確實認為有很多人正在感染病毒。就旅行而言，對吧。所以我認為你會看到更多的穩定，但仍然是良好的穩定增長。

Our next question comes from the line of Faiza Alwy with Deutsche Bank.

我們的下一個問題來自 Faiza Alwy 與德意志銀行的聯繫。

I just wanted to follow up again on the Technical Solutions side of the business. So walk us through -- you mentioned that you have a project backlog of $440 million, are you expecting that all of that will be recognized as revenue this year? Just walk us through the timing of what's going on with the project delays? And when do you expect to fulfill those projects?

我只是想再次跟進業務的技術解決方案方面。那麼請告訴我們——您提到您的項目積壓金額為 4.4 億美元，您是否預計所有這些都將被確認為今年的收入？請向我們介紹一下項目延誤的時間安排？您預計什麼時候完成這些項目？

Sure, Faiza. No, no. That will all be recognized this year. So typically speaking, ATS in general has always been the back half of the year story. And just to put some color around it, we do a lot of work in school systems. So think about the fact that in July and August, the schools aren't occupied, especially the K–12.So that's the time that you go in and you do a lot of the infrastructure work. So that's why a lot of this is back half loaded, right? So for us, backlog means, again, signed contracts that get initiated.

當然，法伊扎。不，不。這一切都將在今年得到認可。因此，一般而言，ATS 總體上一直是下半年的故事。為了給它增添一些色彩，我們在學校系統中做了很多工作。因此，請考慮一下這樣一個事實：在 7 月和 8 月，學校沒有人，尤其是 K-12。所以這就是您進去並進行大量基礎設施工作的時間。這就是為什麼很多都是半加載的，對吧？因此，對我們來說，積壓工作再次意味著簽署並啟動的合同。

So a lot of that's going to happen in Q3 and Q4, really more in Q4 than Q3. And that will be the initiation. So I can't give you a precise exactly how much of $440 million will be in year. But it's a really strong sign that we have backlog at that level. But it's -- think of it as initiating the projects in Q4 and they ramp into -- through Q1 and even a little bit into Q2.

因此，很多事情將在第三季度和第四季度發生，實際上第四季度比第三季度發生更多。這就是開始。因此，我無法準確地告訴您一年中 4.4 億美元的金額是多少。但這是一個非常強烈的跡象，表明我們的積壓已經達到了這個水平。但這是 - 可以將其視為在第四季度啟動項目，然後它們進入 - 通過第一季度，甚至進入第二季度。

Okay. And then just so I'm clear because the delays are related. Is it more supply oriented? Or is it more demand-oriented. Because it's -- I was under the impression that it was more supply related. But some of your comments today are leading me to believe that maybe it's more on the demand side under ready to.

好的。然後我就清楚了，因為延誤是相關的。是否更加以供應為導向？或者說更以需求為導向。因為我的印像是這更多地與供應有關。但你今天的一些評論讓我相信，也許更多的是需求方面的準備。

No, actually sorry. No, Faiza, it's a combination of both, right? It's a little bit on demand side on the bundled energy solutions on the microgrids, it's all about the supply chain. And specifically batteries and some of the switch gear. Now we are encouraged because what was happening, and I think you would see this from some of the competitors in our industry. At the beginning of the year, what would happen is something would take 10 weeks and then 10 weeks to get the item and then maybe a month later, you'd get another order for something and you go to the manufacturer, like, "Oh, no, no, now it's taking 12 weeks."

不，其實很抱歉。不，Faiza，這是兩者的結合，對吧？微電網上的捆綁能源解決方案有點按需，這一切都與供應鏈有關。特別是電池和一些開關裝置。現在我們感到鼓舞，因為正在發生的事情，我想你會從我們行業的一些競爭對手身上看到這一點。在年初，會發生的情況是，需要 10 週，然後 10 週才能收到該商品，然後可能一個月後，您會收到另一份訂單，然後您去找製造商，例如，“哦，不，不，現在需要 12 週。”

And then you'd call again, it's like, "Now it's taking 14 weeks." It's all starting to stabilize now. And that's the key for us. So if something pre-pandemic took 6 weeks and now it's taking 10. As long as it stays taking 10, you could be planful, you can manage around it and we're seeing that stabilization. So the majority of the problem, especially on the RavenVolt side has been supply chain-oriented definitely not demand-oriented. The pipeline is really, really robust.

然後你再次打電話，就像是，“現在需要 14 週了。”現在一切都開始穩定下來。這對我們來說是關鍵。因此，如果某件事在大流行前需要 6 週，現在需要 10 週。只要它持續需要 10 週，你就可以有計劃，你可以圍繞它進行管理，我們正在看到這種穩定。因此，大多數問題，尤其是 RavenVolt 方面的問題，都是以供應鍊為導向的，而不是以需求為導向的。管道真的非常非常強大。

Okay. Good. Sorry, I'm just a little unclear -- that's why I just want to follow up because -- so if it is on the RavenVolt side, Right, (inaudible) Wouldn't impact your organic revenue. So explain to me a little bit more in terms of what's driving the decline in organic revenue.

好的。好的。抱歉，我只是有點不清楚 - 這就是為什麼我只想跟進，因為 - 所以如果它在 RavenVolt 方面，對，（聽不清）不會影響您的有機收入。請向我解釋一下導致有機收入下降的原因。

Yes. So if you -- let's just pull out RavenVolt for a second, right? So there's 2 core segments there. There is EV and there's bundled energy solutions. And both of those are more demand side. And for different reasons, EV because we were just winding down a big project with the dealership, and we're now ramping up a big project with an automotive company. So you're seeing that delay to the back half. So that was just timing, but demand timing, not a supply chain timing.

是的。所以如果你——讓我們暫時退出RavenVolt，對吧？所以那裡有兩個核心部分。有電動汽車，也有捆綁能源解決方案。而這兩者都是更多的需求面。由於不同的原因，電動汽車因為我們剛剛結束了與經銷商的一個大項目，而我們現在正在與一家汽車公司合作推進一個大項目。所以你會看到後半段的延遲。所以這只是時機，而是需求時機，而不是供應鏈時機。

And the other one is bundled energy solutions, which is we talked about a few seconds ago, which is really the fact that we have the backlog. We have the orders book but clients aren't pulling the trigger because they're just doing a general pause. But again, we're starting to see that loosen up a bit. Now that I think the market is thinking that interest rates are starting to stabilize. And if it is what it is, then you start making those decisions.

另一個是捆綁能源解決方案，這是我們幾秒鐘前討論過的，這實際上是我們有積壓的事實。我們有訂單簿，但客戶沒有扣動扳機，因為他們只是暫時停頓。但我們再次開始看到這種情況有所放鬆。現在我認為市場認為利率開始穩定。如果事實如此，那麼你就開始做出這些決定。

Got it. And then just maybe if I can follow up on the ELEVATE initiatives, right? You mentioned a few things. Give us a sense of how you're thinking about timing there? I know you've talked about the end state being maybe a couple of years ago, talk about how you're thinking about getting to that end state, what are some of the next initiatives that we should expect going forward?

知道了。然後也許我可以跟進 ELEVATE 計劃，對吧？你提到了一些事情。請告訴我們您是如何考慮在那裡的時間安排的？我知道您可能在幾年前談到過最終狀態，請談談您如何考慮達到最終狀態，我們應該期待哪些下一步舉措？

Sure. I mean, look, we are on track with ELEVATE. And the big core in terms of infrastructure is our ERP transformation, and that's a 2-year process because we're doing it by industry group which just had the successful launch of our education group literally like a month ago, and it's gone way better than we even expected, right? Because ERP implementations are always bumpy. and it went really well. And now we're landing our next industry group, which will happen early next year.

當然。我的意思是，看，我們正走在 ELEVATE 的正軌上。基礎設施方面的大核心是我們的 ERP 轉型，這是一個為期 2 年的過程，因為我們是由行業集團來做的，該行業集團一個月前剛剛成功推出了我們的教育集團，而且進展得更好比我們預期的還要多，對吧？因為ERP的實施總是充滿坎坷。一切都很順利。現在我們正在組建下一個行業組，​​這將於明年初進行。

So the infrastructure side is on track and going better than we hope then other things are all in progress, right? We launched hyper targeting for sales growth. you saw or heard in the prepared remarks, we had another unbelievable first 6 months of the year of new sales.

所以基礎設施方面正在步入正軌，並且比我們希望的更好，然後其他事情都在進展中，對吧？我們推出了針對銷售增長的超級目標。您在準備好的發言中看到或聽到，我們今年前 6 個月的新銷售量又令人難以置信。

So that's a reflection not only of our sales team in terms of just the culture of our people, but the hyper targeting tool. And we're now piloting our workforce management which is going to create efficiency in the field. And this month, we're releasing our ABM Connect which is our digital application to start connecting us in real time to the people out in the field, which is going to be a real game changer for us. And even that is probably a 12- to 18-month journey if not longer to actually get it deployed across 100,000 people, as you can imagine. But things are going as planned. So we're -- hopefully, you can sense the enthusiasm.

因此，這不僅反映了我們銷售團隊的員工文化，還反映了超級定位工具。我們現在正在試點勞動力管理，這將提高該領域的效率。本月，我們將發布 ABM Connect，這是我們的數字應用程序，用於開始將我們與現場人員實時連接，這對我們來說將是真正的遊戲規則改變者。正如您可以想像的那樣，即使不是更長，也可能需要 12 到 18 個月的時間才能真正在 100,000 人中部署它。但事情正在按計劃進行。所以我們希望您能感受到我們的熱情。

(Operator Instructions) Our next question comes from the line of David Silver with CL King & Associates.

（操作員說明）我們的下一個問題來自 CL King & Associates 的 David Silver。

I would like to maybe just drill down a little bit on the RavenVolt performance to date. And I'm wondering if you -- maybe if you wouldn't mind discussing how the performance of the business aligns or how it compares to kind of your initial expectations? And then in particular, I noticed you booked to change to the fair value of contingent consideration. Could you just maybe talk about what drove you to make that adjustment this quarter.

我想稍微深入了解一下 RavenVolt 迄今為止的性能。我想知道您是否 - 也許您不介意討論業務績效如何調整，或者與您最初的期望相比如何？然後特別是，我注意到您預定更改為或有對價的公允價值。您能否談談是什麼促使您在本季度進行了調整？

Sure. I'll take the first part of it. We're as encouraged as ever about RavenVolt. I think probably even more so than we did the transaction because microgrids are so compelling right now. And the backlog is phenomenal, and the team is phenomenal. So I think if there was any level -- I don't even want to use the word disappointment, it's just a supply chain and you can't control that, right? And it's the same thing that everyone in our industry is facing. But again, we see light at the end of the tunnel, and we're hoping for a strong back half of the year. But I'll let Earl talk to the accounting treatment because that's in his wheelhouse.

當然。我將採取它的第一部分。 RavenVolt 一如既往地讓我們深受鼓舞。我認為可能比我們進行的交易更重要，因為微電網現在非常引人注目。積壓的訂單數量驚人，團隊也非常出色。所以我認為如果有任何級別的話——我什至不想使用失望這個詞，這只是一個供應鏈，你無法控制它，對吧？這也是我們行業中每個人都面臨的問題。但我們再次看到了隧道盡頭的曙光，我們希望今年下半年表現強勁。但我會讓厄爾談談會計處理，因為那是他的職責。

So Earl, you can take it away. Sure, Scott.

那麼厄爾，你可以把它拿走。當然，斯科特。

So on a quarterly basis, we do a mark-to-market valuation on the contingent consideration. And when we look at the outlook, as Scott just mentioned, we're still very positive on the deal model. However, there's some timing challenges as we take with regards to supply chain timing, which has actually deferred some of the revenue and earnings that would have actually happened in year one into future years. And then just based on the GAAP accounting of that, you actually then discount that back with a high discount rate. which then resulted in this reduction in the liability. So again, I would really chalk it up to timing as opposed to anything different from a value case basis.

因此，我們每季度都會對或有對價進行按市值計價的估值。當我們展望前景時，正如斯科特剛才提到的，我們對交易模式仍然非常樂觀。然而，我們在供應鏈時間安排方面存在一些時間挑戰，這實際上將第一年實際發生的一些收入和收益推遲到了未來幾年。然後，根據 GAAP 會計準則，您實際上可以以高折扣率對其進行折扣。這導致了負債的減少。再說一次，我真的會把它歸結為時機，而不是任何與價值案例基礎不同的東西。

Yes. That's kind of where -- what I was wondering about. I appreciate you targeting that. My other question would be kind of more about the office market, the commercial market, which seems to be in the news quite a bit. You certainly addressed it right up front. But I'm just wondering if maybe you could -- Scott, if maybe you would share kind of a multiyear outlook, a 2- or 3-year outlook. In other words, you -- I think what you are saying is the office market and the motivations and whatnot for the tenants has changed.

是的。這就是我想知道的地方。我很欣賞你的目標。我的另一個問題更多地是關於辦公市場、商業市場，這似乎在新聞中經常出現。你當然一開始就解決了這個問題。但我只是想知道你是否可以 - 斯科特，你是否可以分享某種多年的展望，2 年或 3 年的展望。換句話說，我認為你所說的是辦公市場和租戶的動機等已經發生了變化。

And for yourself to keep growing in that area? I'm guessing you're going to have to take share or offer higher a bundle of higher-value services. So from your perspective, I mean, what continued, I guess, evolution in your value proposition or in your offering into the commercial market will be necessary for you to kind of deal with the current trends towards lower occupancy rates and remote work or hybrid work arrangements in order to kind of continue to kind of maintain your position and ideally grow, grow your share, grow your profitability in there.

並讓自己在該領域不斷成長？我猜你將不得不分享或提供更多更高價值的服務。因此，從您的角度來看，我想，您的價值主張或您向商業市場提供的產品的持續演變將是您應對當前入住率下降和遠程工作或混合工作趨勢的必要條件以便繼續保持您的地位並理想地增長、增加您的份額、增加您的盈利能力。

Sure. Well, listen, there's certainly going to be pressure in commercial real estate, right? That's pretty obvious, right? For us, so far, as we've mentioned, it's really only been around the work order side because of hybrid and the economy. So when you drill down into ABM portfolio in B&I, David, don't forget that -- or we may not have the insight to this, but 1/3 of our revenues in B&I is around engineering and parking, right? And those are really stabilized depending on office density because it doesn't matter how dense a floor is you still need "engineers" in the basement, working on the mechanical and electrical business, that doesn't change. And parking, as we said, is stabilized.

當然。嗯，聽著，商業地產肯定會面臨壓力，對吧？這很明顯，對吧？對於我們來說，到目前為止，正如我們所提到的，由於混合動力和經濟，它實際上只圍繞工作訂單方面。因此，當您深入了解 B&I 中的 ABM 產品組合時，David，請不要忘記這一點，或者我們可能對此沒有洞察力，但我們在 B&I 中的 1/3 收入來自工程和停車，對吧？這些實際上是穩定的，具體取決於辦公室密度，因為無論樓層有多密集，你仍然需要在地下室從事機械和電氣業務的“工程師”，這一點不會改變。正如我們所說，停車已經穩定。

So you're really talking about the janitorial piece that has some of the exposure. But then you look at ABM's portfolio, and we are way predominantly Class A buildings, newer buildings, bigger buildings, which are the ones that are going to survive the best and if anything, we've seen those have positive absorption as compared to the rest of the market because we're seeing B and C tenants from B and C buildings rather migrating into Class A buildings.

所以你真正談論的是有一些曝光的清潔作品。但你看看 ABM 的投資組合，我們主要是 A 級建築、較新的建築、更大的建築，這些建築將是最好的，如果有的話，我們已經看到這些建築與其他建築相比具有積極的吸收率。市場的其餘部分，因為我們看到 B 級和 C 級建築的 B 級和 C 級租戶寧願遷移到 A 級建築。

So I think for us, we're pretty protected. It will be choppy for the next several quarters, there's no question about it. Leases expire even in A buildings. And as they take a little less space, the next tenant has to come in, they're going to have a year or so to build their space. So there'll be some choppiness. But I think, again, we're so mitigated because of the portfolio that we have. And don't forget, again, as a whole, we're diversified. We've been investing in end markets like ATS, manufacturing and distribution, which is another hedge for us.

所以我認為對我們來說，我們受到了很好的保護。毫無疑問，接下來的幾個季度將會波動。即使是 A 棟樓，租約也會到期。當他們佔用的空間減少一點時，下一個租戶就必須進來，他們將有一年左右的時間來建造他們的空間。所以會有一些起伏。但我再次認為，由於我們擁有的投資組合，我們的處境如此輕鬆。再次不要忘記，作為一個整體，我們是多元化的。我們一直在投資 ATS、製造和分銷等終端市場，這對我們來說是另一個對沖。

So -- and then lastly, David, what I would say is you think about the ELEVATE investments and just hyper targeting just in general for -- on the growth side to help us mitigate some of the compression in the real estate market. So I think we're doing all the things we can and we actively manage these challenges. We've seen some of these downturns before in the segments, look at even the pandemic when schools were closed and airports were closed and B&I accelerated. So now we may be in a period where there is less acceleration in B&I, but as we talked about, aviation is doing great and ATS is doing great.

所以，最後，大衛，我要說的是，你考慮了 ELEVATE 投資，以及總體上的超級目標——在增長方面，以幫助我們減輕房地產市場的一些壓力。所以我認為我們正在盡我們所能，積極應對這些挑戰。我們之前在各個細分市場中已經看到過其中的一些低迷，甚至在學校關閉、機場關閉和 B&I 加速的情況下看看大流行。因此，現在我們可能正處於 B&I 加速放緩的時期，但正如我們所說，航空業表現出色，ATS 表現出色。

I just have a quick one here, but you touched on ERP and what the history of many other companies has been with their different implementation issues. And I've certainly been an observer of a number of them. Just so I know, but in the event that maybe costs rise a little bit above expectations, with the implementation of your ERP system. Would that extra outlay be treated? Would it be capitalized? Or would it be expense? If you have a sense of that at this point?

我在這裡只是簡單介紹一下，但您談到了 ERP 以及許多其他公司的歷史及其不同的實施問題。我當然是其中一些人的觀察者。據我所知，但如果您的 ERP 系統實施後，成本可能會略高於預期。這筆額外支出會得到處理嗎？會大寫嗎？或者說這會是費用嗎？此時你是否有這樣的感覺？

Yes. We're right on our target. So we're not talking about cost overruns at this point. We feel really good and have really good line of sight into what the expense profile looks like in the next couple of years. So that's not in our narrative cost overruns.

是的。我們正朝著我們的目標前進。所以我們現在不是在談論成本超支。我們感覺非常好，並且對未來幾年的費用狀況有很好的了解。所以這不屬於我們敘述的成本超支。

Ladies and gentlemen, our final question this morning comes from the line of Timothy Mulrooney with William Blair.

女士們先生們，我們今天早上的最後一個問題來自蒂莫西·馬爾魯尼和威廉·布萊爾的對話。

Most of my questions have been answered, so I'll keep this quick. But last quarter, you all gave the headwinds from work orders. I think it was $35 million. And you said you'd expect that, I think, to more normalize. So you didn't mentioned it this quarter. Is that because there really wasn't a headwind year-over-year or if there wasn't can you quantify it for us?

我的大部分問題已經得到解答，所以我會盡快回复。但上個季度，你們都受到了工作訂單的不利影響。我認為是 3500 萬美元。你說你希望這種情況能夠更加正常化。所以你這個季度沒有提到這一點。這是因為確實沒有逐年出現逆風，或者如果沒有，您能為我們量化一下嗎？

Yes. We're talking about maybe $15 million. It hasn't been much. And again, I do think we're heading into this more stabilized rate right now. So yes. I think this is -- we're actually given everything that's happening in the environment and where hybrid is and as I said, where the overall economy is we were actually pleased that it wasn't more acute.

是的。我們談論的可能是 1500 萬美元。並沒有太多。再說一次，我確實認為我們現在正在進入這個更加穩定的利率。所以是的。我認為這是——我們實際上已經了解了環境中發生的一切以及混合動力所在的情況，正如我所說的，整體經濟所處的情況我們實際上很高興它沒有變得更加嚴重。

Yes. Because I mean, I think what we talked about last quarter was the anticipated reduction in disinfection related work orders, which that will become a nonstory starting in Q3, Q4 as that kind of like [dissipates] I think what the potential headwinds that we'll be seeing potentially in the future are really around just based on what Scott earlier alluded to with regards to hybrid the hybrid environment and the potential for reduction in work orders where, again, right now, we're now at kind of call it free-COVID levels, which are typically about 5% of revenue.

是的。因為我的意思是，我認為我們上季度討論的是消毒相關工單的預期減少，這將從第三季度、第四季度開始成為一個無稽之談，因為這種情況[消散]我認為我們的潛在阻力是什麼？未來我們可能會看到，基於斯科特之前提到的混合環境和減少工單的潛力，我們現在可以稱之為免費。 -新冠肺炎水平，通常約為收入的 5%。

Yes, that's kind of how I'm thinking about it, or how I interpreted Scott's comments earlier is like, look, pre-pandemic work order of 4% to 5%. All else equal, you'd expect that to be higher on a go-forward basis. But there's some macro headwind stuff that's kind of pulling it back to that 4%, 5%. Is that the right way to think about it?

是的，這就是我的想法，或者我之前對斯科特評論的解釋就像，看，大流行前的工作訂單為 4% 到 5%。在其他條件相同的情況下，您預計未來該數字會更高。但有一些宏觀逆風因素將其拉回到 4%、5%。這是正確的思考方式嗎？

That's exactly right.

完全正確。

Exactly right. And again, what I would reiterate is that even during -- before the economy started turning in the last few months, even before that, with hybrid, we were still about pre-pandemic level. So it's almost like kind of this new kind of cost control that we're seeing is what pushed us back to pre-pandemic levels. So we're optimistic, Tim, that we're going to get back above that when the economy turns.

非常正確。再次，我要重申的是，即使在過去幾個月經濟開始好轉之前，甚至在此之前，對於混合動力，我們仍然處於大流行前的水平。因此，我們看到的這種新型成本控制幾乎使我們回到了大流行前的水平。因此，蒂姆，我們樂觀地認為，當經濟好轉時，我們將回到這一水平。

Understood. Last one from me, guys. Does it make sense to prioritize your capital allocation on debt reduction near term versus M&A and buybacks and other things to help reduce that incremental interest burden? Or are you comfortable at 2.6x.

明白了。伙計們，我的最後一篇。將資本配置優先用於近期債務削減，而不是併購、回購和其他有助於減輕增量利息負擔的事情是否有意義？或者您對 2.6 倍感到滿意嗎？

Yes. No, good question. When we looked at our cash flow, which generally is weighted more in the back half. We do feel like it's going to provide us with ample flexibility to do both of those things, which would include paying down debt in addition to potentially doing some very small share buybacks. And when I talk about share buybacks, it really would be most likely limited to the anti-dilutive nature of our share-based compensation. But the good news is we feel that with our strong cash flows, we'll be able to limit our net leverage exposure.

是的。不，好問題。當我們查看現金流時，通常在後半部分權重更大。我們確實認為這將為我們提供足夠的靈活性來完成這兩件事，其中包括償還債務以及可能進行一些非常小額的股票回購。當我談論股票回購時，它很可能僅限於我們基於股票的薪酬的反稀釋性質。但好消息是，我們認為憑藉強勁的現金流，我們將能夠限制我們的淨槓桿風險。

Ladies and gentlemen, that concludes our question-and-answer session. I'll turn the floor back to Mr. Salmirs for any final comments.

女士們先生們，我們的問答環節到此結束。我將把發言權交還給薩爾米爾斯先生，徵求最後的意見。

I just want to thank everybody for participating and the interest level, again, very, very much appreciate it. We hope everyone is having a good start to the summer, and we're looking forward to coming back to you in Q3 with an update on all things ABM. So have a great summer, everybody.

我只想感謝大家的參與和興趣，再次非常非常感謝。我們希望每個人都能在這個夏天有一個良好的開端，我們期待在第三季度向您提供有關 ABM 的所有更新信息。所以祝大家度過一個愉快的夏天。

Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。