Agiliti Inc (AGTI) 2023 Q3 法說會逐字稿

Good afternoon, and welcome to Agiliti Third Quarter 2023 Earnings Conference Call. Today's call is being recorded and we have allocated 1 hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Kate Kaiser, Senior Vice President of Corporate Communications and Investor Relations at Agiliti. Thank you. You may begin.

下午好，歡迎參加 Agiliti 2023 年第三季財報電話會議。今天的電話會議正在錄音，我們分配了 1 個小時來準備發言和問答。這次，我想將會議交給 Agiliti 企業傳播與投資人關係資深副總裁 Kate Kaiser。謝謝。你可以開始了。

Thank you, and hello, everyone. We appreciate today's call as we provide an overview of Agiliti's results for the quarter ending September 30, 2023. Before we begin, I'll remind you that during today's call, we'll be making statements that are forward looking and consequently are subject to risks and uncertainties. Certain factors may affect us in the future and could cause actual results to differ materially from those expressed in these forward-looking statements.

謝謝大家，大家好。我們感謝今天的電話會議，因為我們概述了Agiliti 截至2023 年9 月30 日的季度業績。在我們開始之前，我要提醒您，在今天的電話會議中，我們將做出前瞻性聲明，因此會受到風險和不確定性。某些因素可能會在未來影響我們，並可能導致實際結果與這些前瞻性陳述中表達的結果有重大差異。

Specific risk factors are detailed in our press release and in our most recent SEC filings, which can be found in the Investors section of our corporate website at agilitihealth.com. We will also be referring to certain measures that are not calculated and presented in accordance with generally accepted accounting principles during this call. You can find a reconciliation of those measures to the most directly comparable GAAP measures on the description of why we use these measures in our press release. To download a copy of the presentation that we will use to facilitate today's discussion, please visit our website at agilitihealth.com, select the Investors section at the top of the screen and in Events and Presentation. Finally, select a presentation titled Agiliti Q3 2023 Earnings Slides.

我們的新聞稿和最近向 SEC 提交的文件中詳細介紹了具體的風險因素，這些文件可以在我們公司網站 agilitihealth.com 的投資者部分找到。在本次電話會議中，我們也將提及某些未依照公認會計原則計算和提出的指標。您可以在我們的新聞稿中關於我們使用這些措施的原因的描述中找到這些措施與最直接可比較的 GAAP 措施的協調表。要下載我們將用於促進今天討論的簡報副本，請訪問我們的網站 agilitihealth.com，選擇螢幕頂部的「投資者」部分以及「活動和簡報」。最後，選​​擇題為 Agiliti Q3 2023 Earnings Slides 的簡報。

A final note before we begin our prepared remarks. On October 2, 2023, Agiliti announced that Tom Leonard would rejoin the company as its Chief Executive Officer effective immediately. Mr. Leonard previously served as CEO of Agiliti beginning in April of 2015 until announcing his retirement in January of this year. I will now turn the call over to our CEO, Tom Leonard.

在我們開始準備好的發言之前，有最後一點說明。 2023 年 10 月 2 日，Agiliti 宣布 Tom Leonard 將重新加入公司，擔任首席執行官，立即生效。 Leonard 先生曾於 2015 年 4 月開始擔任 Agiliti 首席執行官，直至今年 1 月宣布退休。我現在將把電話轉給我們的執行長湯姆·倫納德。

Thank you, Kate, and good afternoon. It's great to be back at Agiliti. I'd like to begin today with some brief reflections that we joining the company and our path forward. Over the first few weeks, my focus has been on reconnecting with our teams across the company and doing a deep dive into our solutions and operating systems, seeking a clear understanding of our performance, obstacles and opportunities. What gives me confidence as I reenter the business is that we don't need to look outside for near-term growth opportunities and no part of our business faces a structural hurdle that impacts its long-term potential.

謝謝你，凱特，下午好。很高興回到 Agiliti。今天我想先簡單回顧一下我們加入公司以及我們前進的道路。在最初的幾周里，我的重點是與整個公司的團隊重新建立聯繫，深入研究我們的解決方案和操作系統，尋求對我們的績效、障礙和機會的清晰了解。當我重新進入該行業時，讓我充滿信心的是，我們不需要從外部尋找短期成長機會，而且我們業務的任何部分都不會面臨影響其長期潛力的結構性障礙。

In other words Agiliti has far more room to execute than it has been apparent in recent quarters. The key to unlocking our potential begins with the rebalancing of mix. We've already begun to be focused and retrain our selling teams to once again deliver a healthy balanced business mix for the company. For Agiliti, mix is not simply the relative proportion of individual solutions we sell. As an important point that bears repeating. For Agiliti a healthy mix of business is not just about the relative proportion of our individual solutions. It also includes balancing larger multiyear customer contract wins with a steady flow of more transactional, high contribution margin business, including rental and supplemental clinical engineering, it means regaining the discipline of building local market density to ensure we best utilize our existing local market capabilities, a key driver to improving our overall margin profile.

換句話說，Agiliti 的執行空間比最近幾季的表現大得多。釋放我們潛力的關鍵始於重新平衡組合。我們已經開始集中精力並重新培訓我們的銷售團隊，以再次為公司提供健康平衡的業務組合。對 Agiliti 來說，混合不僅僅是我們銷售的單一解決方案的相對比例。這是值得重複的重要一點。對 Agiliti 來說，健康的業務組合不僅僅在於我們單一解決方案的相對比例。它還包括平衡更大的多年客戶合約贏得與更多交易性、高貢獻率業務的穩定流動，包括租賃和補充臨床工程，這意味著重新建立本地市場密度的紀律，以確保我們最好地利用我們現有的本地市場能力，改善我們整體利潤狀況的關鍵驅動力。

It's about refocusing on share of wallet capture opportunities within our existing customers, that our combined solutions drive meaningful synergies for customers and we benefit from the efficiencies of shared teams, tools and infrastructure, and it includes targeting our selling efforts in local markets where we have pre-existing capabilities to reduce our growing short-term alliance on margin sapping third-party service partners. Importantly, these actions are not meant to represent the comprehensive list.

這是關於重新關注我們現有客戶中的錢包獲取機會的份額，我們的組合解決方案為客戶帶來有意義的協同效應，我們從共享團隊、工具和基礎設施的效率中受益，它包括將我們的銷售工作瞄準我們已經擁有的本地市場。現有的能力會減少我們日益增長的短期聯盟的利潤，從而削弱第三方服務合作夥伴的利潤。重要的是，這些操作並不代表完整的清單。

Rather, they're among the many levers the company has long used to deliver a best-in-class margin profile but that have been missed is the company over-indexed on generating top line growth. Also key to achieving both near- and longer-term growth goals will be unlocking the potential of our entire business. In recent quarters, much of management's discussion with investors has revolved around a post-COVID rebaseline for our peak need rental solution as well as the financial impact of delays and upfront implementation costs, as the company onboarded more and larger contracts than ever before in its history.

相反，它們只是該公司長期以來用來提供同類最佳利潤率的眾多槓桿之一，但人們忽略了該公司在產生收入成長方面的指數過高。實現近期和長期成長目標的另一個關鍵是釋放我們整個業務的潛力。最近幾個季度，管理層與投資者的大部分討論都圍繞著疫情後我們高峰需求租賃解決方案的重新基準，以及延遲和前期實施成本的財務影響，因為該公司在其歷史上簽訂了比以往任何時候都多、規模更大的合約。歷史。

This remains an accurate description of the variance in reported results from management's expectations in those prior periods. But variance expectations is not the same as unrealized potential. Let me illustrate that point with a couple of examples, beginning within our Equipment Solutions service line. Peak need rental has emerged as a significant drive in Agiliti's financial performance over the prior 3 years. First as the company benefited from outsized demand for medical equipment during the pandemic.

這仍然是對報告結果與管理階層先前時期預期差異的準確描述。但方差預期與未實現的潛力不同。讓我用幾個例子來說明這一點，從我們的設備解決方案服務線開始。高峰時期的租金需求已成為 Agiliti 過去 3 年財務表現的重要推手。首先，該公司受惠於疫情期間對醫療設備的龐大需求。

And again, as we moved toward a lowered utilization baseline post COVID as a result of our customers excess medical device purchases during that period. But keep in mind, peak need rental represents just 6% of total company revenue this year. So while it will always be critical for us to continuously refill the bucket with this type of transactional high contribution margin volume, forward financial impact of P&R on our overall results should be more muted at this current level.

再次，由於我們的客戶在此期間購買了過多的醫療設備，我們在新冠疫情之後降低了利用率基準。但請記住，高峰需求租金僅佔今年公司總收入的 6%。因此，雖然我們不斷地用這種類型的交易高邊際貢獻量來補充水桶總是至關重要的，但在目前的水平上，P&R 對我們整體業績的遠期財務影響應該更加減弱。

Today, as it was prior to the pandemic, the more strategic offerings within our equipment solutions and service line and more importance to our longer growth plans include our specialty beds and clinical surfaces solution or SCS as well as our surgical services offering. SCS includes product manufacturing capabilities and clinically differentiated support services acquired through the Sizewise acquisition in 2021. This solution has been a consistent growth driver and represents a long runway for margin improvements as well as opportunities for future strategic investment. Shortly after our acquisition 2 years ago, we began to invest in R&D, systems infrastructure, manufacturing automation. Starting in 2024, we'll begin to see clear benefits as a result of those investments. One example, we currently make and support more than 100 variations of therapeutic support services in a variety of sizes, materials and levels of performance capability.

如今，與大流行之前一樣，我們的設備解決方案和服務系列中更具戰略意義的產品以及對我們長期增長計劃更重要的產品包括我們的特種床和臨床表面解決方案或SCS 以及我們的外科服務產品。 SCS 包括透過 2021 年收購 Sizewise 獲得的產品製造能力和臨床差異化支援服務。該解決方案一直是持續的成長動力，代表著利潤率改善的長遠發展以及未來策略投資的機會。兩年前收購後不久，我們開始投資研發、系統基礎設施、製造自動化。從 2024 年開始，我們將開始看到這些投資帶來的明顯好處。舉個例子，我們目前提供並支援 100 多種不同規模、材料和性能等級的治療支援服務。

We will soon launch a streamlined best in class range of therapeutic support services under the Agiliti brand that will simplify the decision process for our customers and provide Agiliti line of sight to gross margin improvements as we simplify our supply chain and achieve benefits from our increased manufacturing scale. We're excited about our first significant new product family launch within a solution we see is key to our long-term growth goals.

我們很快就會在 Agiliti 品牌下推出精簡的一流治療支援服務系列，這將簡化客戶的決策流程，並在我們簡化供應鏈並從增加的製造中獲益的同時，為 Agiliti 提供提高毛利率的視野規模。我們很高興在解決方案中推出第一個重要的新產品系列，我們認為這是我們長期成長目標的關鍵。

Our surgical services offering is primarily focused on urology procedures where Agiliti surgical lasers, and certified laser technicians provide access to a range of modalities in a pay per case model. We enjoy the #1 competitive position by revenue in this segment and have access to a broad range of technologies, including several on an exclusive basis through our strong manufacturer relationships. Having completed the integration of the -- contracts teams and modalities that came with the late 2022 acquisition of HealthTronics, we're well positioned with gross and margin expansion initiatives as we prepare to enter a new year.

我們的手術服務主要集中於泌尿外科手術，其中 Agiliti 手術雷射和經過認證的雷射技術人員以按病例付費的模式提供一系列治療方式。我們在這一領域的收入方面享有第一的競爭地位，並且能夠獲得廣泛的技術，其中包括透過我們強大的製造商關係獨家獲得的多項技術。 2022 年底收購 HealthTronics 後，我們完成了合約團隊和模式的整合，在準備進入新的一年之際，我們在毛利率和利潤擴張計劃方面處於有利地位。

Staying on the topic of unlocking the potential of our entire business, I'll share just 1 more example, this time from our clinical engineering service line. You recall that we acquired Mobile Instruments in early 2020 and Northfield Medical in 2021. These acquisitions of the prior numbers 2 and 3 players by revenue in surgical equipment repair, launched Agiliti into a fast-growing segment of the market.

繼續圍繞著釋放我們整個業務潛力的主題，我將再分享 1 個例子，這次來自我們的臨床工程服務線。您還記得我們在 2020 年初收購了 Mobile Instruments，並於 2021 年收購了 Northfield Medical。這些對先前手術設備維修收入排名第二和第三的企業的收購，使 Agiliti 進入了快速成長的市場領域。

As an independent service provider, we offer our customers a strong financial value proposition, a 1 vendor solution for their repair needs, along with the confidence of working with the business that is ISO 1345 certified and backed by a full medical device quality management system. Both Mobile Instrument and Northfield were acquired during the pandemic. When surgical case values around the country were below normal levels. So we took the opportunity at that time to focus on integrating our operations and harmonizing our commercial strategies. Today, we hold a strong competitive position. We enjoy a positive momentum in the market and are executing on our road map for growth and accelerating margin expansion.

作為一家獨立的服務供應商，我們為客戶提供強大的財務價值主張、滿足其維修需求的單一供應商解決方案，以及與經過 ISO 1345 認證並由完整醫療器材品質管理系統支援的企業合作的信心。 Mobile Instrument 和 Northfield 都是在疫情期間收購的。當全國各地的手術病例數低於正常水平時。所以我們抓住了當時的機會，專注於整合我們的業務並協調我們的商業策略。今天，我們擁有強大的競爭地位。我們享受市場的積極勢頭，並正在執行我們的成長路線圖並加速利潤率擴張。

In summary, as we rebalance our selling mix and focus on better execution across all of our solutions, we believe our core financial engine will once again deliver highly profitable and predictable growth. Our ability to execute on these and other opportunities within our portfolio remains well within our control. I'd like to conclude with my prepared remarks today, I want to acknowledge the recent analyst and investor feedback we've received.

總而言之，隨著我們重新平衡我們的銷售組合併專注於更好地執行我們所有的解決方案，我們相信我們的核心財務引擎將再次帶來高利潤和可預測的成長。我們執行投資組合中的這些機會和其他機會的能力仍然在我們的控制範圍內。我想以今天準備好的發言作為結束語，我想感謝我們最近收到的分析師和投資者的回饋。

We appreciate the importance of management rebuilding the trust and confidence of the market. We believe the recent performance of our equity significantly undervalues the strength of our financial engine. Our competitive position in the markets we serve and the sustainable advantages of our unique operating model. We understand the overhangs that currently lay on our valuation and we're committed to working through them. I'll return to Agiliti to lead this company as I deeply believe in our team. And the critical role Agiliti plays in our national medical device infrastructure and in our ability to rebuild a bright future for this company while delivering strong returns for our shareholders.

我們認識到管理層重建市場信任和信心的重要性。我們認為，我們股票近期的表現大大低估了我們金融引擎的實力。我們在所服務的市場中的競爭地位以及我們獨特的營運模式的可持續優勢。我們了解目前估值中存在的問題，並致力於解決這些問題。我將回到 Agiliti 領導這家公司，因為我深深相信我們的團隊。 Agiliti 在我們的國家醫療設備基礎設施以及我們重建公司光明未來的能力以及為股東帶來豐厚回報的能力中發揮關鍵作用。

So as we complete and prepared report on the full year and set expectations for 2024 we are committed to providing the right level of transparency and color on the business to strengthen your review of our progress. For now, I'll pass the call to Jim to provide detail on our Q3 results before returning to take your questions.

因此，當我們完成並準備全年報告並設定 2024 年的期望時，我們致力於提供適當水平的業務透明度和色彩，以加強您對我們進展的審查。現在，我將把電話轉給吉姆，提供有關我們第三季度業績的詳細信息，然後再返回回答您的問題。

I'll start with an overview of our Q3 2023 financials and later offer some comments on our outlook for the year. For the third quarter, total company revenue was $292 million, representing an 8% increase over the prior year. Adjusted EBITDA totaled $62 million a 7% decline compared to Q3 last year. And adjusted EBITDA margins totaled 21%. Adjusted EBITDA margins were affected by the revised scope of the new HHS contract renewal as well as a lower number of peak need rental placements. In addition, adjusted EBITDA margins were negatively impacted by mix within equipment solutions with lower peak need rental revenue, partly offset by strong revenue growth for both SES and surgical services, including the contribution of the prior year acquisition.

我將首先概述我們 2023 年第三季的財務狀況，然後對我們今年的前景提出一些評論。第三季度，公司總營收為2.92億美元，比上年同期成長8%。調整後 EBITDA 總計 6,200 萬美元，比去年第三季下降 7%。調整後的 EBITDA 利潤率為 21%。調整後的 EBITDA 利潤率受到新 HHS 合約續約範圍的修訂以及高峰需求租賃安置數量減少的影響。此外，調整後的 EBITDA 利潤率受到設備解決方案組合的負面影響，高峰需求租賃收入較低，但 SES 和手術服務的強勁收入成長（包括上一年收購的貢獻）部分抵消了這一影響。

Adjusted earnings per share of $0.09 in the quarter compared to $0.19 in the prior year, driven by a decline in adjusted net income, the impact of the increase in the effective interest rate on our debt amounted to approximately $0.05 per share in the quarter. Taking a closer look at the third quarter across each of our service lines. Equipment Solutions revenue totaled $113 million, up 10% year-over-year. The increase was primarily attributable to onboarding new surgical rental business primarily driven by the December 2022 acquisition as well as new customer growth within SES. Growth within equipment solutions was partially offset by lower peak need rental revenue in the quarter versus the prior year.

本季調整後每股收益為 0.09 美元，而去年同期為 0.19 美元，原因是調整後淨利下降，實際利率上升對本季債務的影響約為每股 0.05 美元。仔細觀察我們每個服務線的第三季。設備解決方案營收總計 1.13 億美元，年增 10%。這一成長主要歸因於 2022 年 12 月收購推動的新手術租賃業務以及 SES 內新客戶的成長。設備解決方案的成長被本季與上年相比較低的高峰需求租賃收入部分抵銷。

Moving to Clinical Engineering. Q3 revenue was $115 million, representing a year-over-year increase of 11% for the quarter. New customer growth was the primary driver of the increase versus the prior year as we continue to win and onboard new business including within our surgical equipment repair service line. Finally, Onsite Managed Services revenue totaled $64 million, representing a year-over-year decrease of 1% for the quarter. Continuing down the P&L. Gross margin dollars for Q3 totaled $97 million, a decrease of 5% year-over-year. Our gross margin rate was 33% compared to 37% in the prior year.

轉向臨床工程。第三季營收為 1.15 億美元，年增 11%。與前一年相比，新客戶的成長是成長的主要驅動力，因為我們繼續贏得並開展新業務，包括在我們的手術設備維修服務範圍內。最後，現場管理服務收入總計 6,400 萬美元，本季較去年同期下降 1%。繼續降低損益表。第三季毛利率總計 9,700 萬美元，年減 5%。我們的毛利率為 33%，而前一年為 37%。

The decline in margin rate was primarily due to a lower mix of peak-need rental placements, the onboarding of new large customers within our clinical engineering solution and the lower renewal pricing of the HHS agreement. We will anniversary the HHS renewal pricing in Q1 of 2024. SG&A costs for Q3 totaled $87 million, an increase of $1.3 million point year-over-year. The increase was primarily due to severance costs related to a reduction in staffing in the quarter as well as costs associated with the CEO transition.

保證金率下降的主要原因是高峰需求租賃安置的組合減少、我們的臨床工程解決方案中新的大客戶的加入以及 HHS 協議的續約定價較低。我們將在 2024 年第一季慶祝 HHS 續約定價週年紀念日。第三季的 SG&A 成本總計 8,700 萬美元，年增 130 萬美元。這一增長主要是由於與本季人員減少相關的遣散費以及與執行長換屆相關的成本。

These costs were partially offset by favorable incentive expense associated with a lower projected management incentive payout. Moving to the balance sheet. We closed Q3 with net debt of $1.05 billion. Our cash flow from operations for the first 9 months of the year was $148 million and our leverage ratio at the end of Q3 was approximately 3.87x. As we proceed through this year and into 2024, our capital allocation strategy will focus primarily on reducing our debt and continuing ordinary course reinvestment in our business to support our operations and growth initiatives.

這些成本被與較低的預期管理激勵支出相關的優惠激勵費用部分抵銷。轉向資產負債表。我們第三季末的淨債務為 10.5 億美元。今年前 9 個月我們的營運現金流為 1.48 億美元，第三季末的槓桿率約為 3.87 倍。今年到 2024 年，我們的資本配置策略將主要專注於減少債務並繼續對我們的業務進行常規再投資，以支持我們的營運和成長計畫。

In the short term, we are internally focused on improving our business mix and margins. And we have paused on actively pursuing M&A opportunities, although we continue to maintain a healthy pipeline. Additionally, we do not anticipate further share buybacks under our current authorization in the foreseeable future. We continue to target maintaining our longer-term leverage ratio in the low to mid-3x range. Agiliti maintained a solid liquidity position as of September 2023 with $323 million available comprised of $30 million of cash on hand and $293 million available under our revolving credit facility.

短期內，我們內部專注於改善我們的業務組合和利潤率。儘管我們繼續保持健康的管道，但我們已暫停積極尋求併購機會。此外，我們預計在可預見的將來，我們目前的授權不會進一步回購股票。我們繼續致力於將長期槓桿率維持在 3 倍低至中的範圍內。截至 2023 年 9 月，Agiliti 保持穩健的流動性狀況，可用資金為 3.23 億美元，其中包括 3,000 萬美元的手頭現金和 2.93 億美元的循環信貸額度。

As a reminder, in April 2023, we expanded our revolving credit agreement by $50 million and extended the term to Q2 of 2028. Further, in early May, we completed a modification and extension of our term loan, which transitioned our key underlying benchmark rate from LIBOR to SOFR and extended the maturity to Q2 2030. Finally, of our $1.05 billion in debt, we maintain an interest rate swap agreement on $500 million with swaps floating rate terms for fixed rate terms. This swap has the effect of fixing our SOFR base rate of 4.07%, and the agreement expires at the end of Q2 2025.

提醒一下，2023 年4 月，我們將循環信貸協議擴大了5000 萬美元，並將期限延長至2028 年第二季。此外，5 月初，我們完成了定期貸款的修改和延期，這轉變了我們的關鍵基礎基準利率從LIBOR 改為SOFR，並將期限延長至2030 年第二季。最後，在我們10.5 億美元的債務中，我們維持了5 億美元的利率掉期協議，其中浮動利率條款掉期為固定利率條款。此次互換將我們的 SOFR 基本利率固定為 4.07%，協議將於 2025 年第二季末到期。

Turning now to our outlook for the remainder of 2023. We are reaffirming our full year guidance for each of our metrics. Specifically, revenue in the range of $1.16 billion to $1.19 billion, adjusted EBITDA in the range of $260 million to $270 million and adjusted earnings per share of $0.54 per share to $0.59 per share. And finally, our capital expenditures at $80 million. That concludes our prepared remarks. And I'll now turn the call over to our operator, to provide instructions for Q&A.

現在轉向我們對 2023 年剩餘時間的展望。我們重申每項指標的全年指引。具體來說，營收在11.6億美元至11.9億美元之間，調整後的EBITDA在2.6億美元至2.7億美元之間，調整後每股收益在0.54美元至0.59美元之間。最後，我們的資本支出為 8000 萬美元。我們準備好的演講到此結束。我現在將把電話轉給我們的接線員，以提供問答說明。

Thanks, Jim. We will now be conducting a question-and-answer session. (Operator Instructions) The first question is from Jason Cassorla of Citi.

謝謝，吉姆。我們現在將進行問答環節。 （操作員說明） 第一個問題來自花旗銀行的 Jason Cassorla。

Great. I know more on 2024 is coming next quarter, but was hoping if you could give us a sense of the major swing factors, headwinds and tailwinds to consider for next year. And if at a high level, there's potential for margin expansion in '24, just outside of any major upswing in P&R demand? And then if there's any reason why we shouldn't leverage the longer-term targets you have out there for the 3 businesses, just as proxies to think about revenue growth for next year at this point?

偉大的。我知道更多關於 2024 年的資訊將於下個季度發布，但希望您能讓我們了解明年要考慮的主要搖擺因素、逆風和順風。如果在高水準上，在 P&R 需求大幅上升之外，24 年利潤率還有可能擴大嗎？那麼，我們是否有任何理由不應該利用你們為這 3 項業務制定的長期目標，就像此時考慮明年收入成長的代理一樣？

So I'll start.

那我就開始吧。

I'll follow.

我會跟隨。

We're both eager to jump in. So let me start and say our ability to expand our margins is not simply a function of peak need rental performance. It's actually about driving the right mix, as I described in my prepared remarks across our business with really the most important driver being a focus on building local market density in certain of those areas in and around our local infrastructure of teams and medical devices of our vehicle fleet, driving business near in and around those local facilities.

我們都渴望加入。所以首先我要說的是，我們擴大利潤的能力不僅僅是高峰需求租賃表現的函數。這實際上是關於推動正確的組合，正如我在我們的業務中準備好的評論中所描述的那樣，真正最重要的驅動力是專注於在我們當地的團隊基礎設施和醫療設備周圍的某些領域建立當地市場密度。車隊，在當地設施及其周圍推動業務。

It's when we leverage that as a core part of our service delivery that, that business generates its best incremental margin on that next dollar of revenue. Jim, do you want to touch on mix?

當我們利用它作為我們服務交付的核心部分時，該業務就可以在下一美元的收入中產生最佳的增量利潤。吉姆，你想談談混音嗎？

Yes, I think you've hit it to see -- Jason, we haven't provided the guidance yet in 2024. What I ask you to look at though is just that our trend for 2023, as we completed Q3 and use that as a starting point for 2024 but more to come there, Jason, as we round the bend.

是的，我想你已經看到了——傑森，我們還沒有提供 2024 年的指導。不過，我要求你看的是我們 2023 年的趨勢，因為我們完成了第三季度，並將其用作這是2024 年的起點，但傑森，當我們轉彎時，還會有更多的事情發生。

Okay. Got it. And maybe just a follow-up on that plan around the transactional, I guess as we think about the growth levers there, the SES and the Surgical Services and outside of the P&L, how should we think about the EBITDA flow-through of those solutions against the P&R just trying to think of the magnitude as you focus there? And then it sounds like the shift is a top priority, but just curious what the lead times look like for the implementation of the shift if we should think about this is like a day 1 turnaround or it would take a few quarters to kind of see more of a material mix shift? Just trying to get a sense of timing around this too.

好的。知道了。也許只是圍繞交易的該計劃的後續行動，我想當我們考慮那裡的增長槓桿、SES 和外科服務以及損益表之外時，我們應該如何考慮這些解決方案的 EBITDA 流程反對P&R 只是想想當你關注那裡的規模？然後，聽起來轉變是重中之重，但只是好奇實施轉變的交付時間是什麼樣的，如果我們應該考慮這就像第一天的周轉，或者需要幾個季度才能看到更多的是材料組合的轉變？只是想了解這件事的時機。

So first with regard to individual solutions and their contribution merging as the next dollar of revenue that we onboard it is less about -- if it is peak need rental? Or is it supplemental clinical engineering. It's really a lot more for this business and the margin profile around the place that we source the operating capabilities to deliver against that next dollar of revenue. So what I mean about that is more simplified. I can sell the same piece of business, for example, supplemental clinical engineering who may go in and help a customer who's fallen behind and he has a couple of dozen infusion pumps that they haven't been able to get parts for as an example.

因此，首先就個別解決方案及其貢獻合併為我們加入的下一美元收入而言，它不太重要 - 是否是高峰需要租賃？或是補充臨床工程。對於這項業務和我們獲取營運能力以實現下一美元收入的利潤率來說，這確實要重要得多。所以我的意思是比較簡單的。我可以出售同一塊業務，例如，補充臨床工程，他可能會進去幫助落後的客戶，例如他有幾十個輸液泵，但他們無法獲得零件。

If that is a customer who's down the street from 1 of my local -- my local service centers, we may be able to do that work transporting that equipment in our existing vehicles to an existing facility with existing full-time employees that have already been bought and paid for by other parts of our business that would flow through at very high contribution margin. Conversely, if that same need was done in a place that's not a place where I have local market capabilities or I don't have capacity and I have flex over time or if I have to put somebody on an airplane to go to that facility that can actually not very profitable less than our corporate average contribution to service that revenue.

如果客戶來自我當地的一個服務中心，我們也許能夠完成這項工作，用我們現有的車輛將設備運送到現有的設施，並配備現有的全職員工，這些員工已經由我們業務的其他部分購買和支付，這些部分將以非常高的邊際收益流動。相反，如果同樣的需求是在一個不具備當地市場能力的地方完成的，或者我沒有能力但隨著時間的推移我有彈性，或者如果我必須讓某人乘飛機去那個設施，那麼實際上，獲利能力並不比我們公司對服務收入的平均貢獻低。

So what's -- it is not necessarily exactly which solutions d which proportion we sell them. It's really about how we drive our business in ways that we can maximize that leverage of these local market capabilities that we enjoy. And in terms of the sort of the speed of the turnaround or the change here's what have you think about it. In terms of us getting off course as we have at this point, I think about it like ship crossing the ocean, if it steering compass is just 1% off, a couple of degrees off, in the first day or so, might not be noticeable, maybe a few hundred yards off course.

那麼，這不一定是我們銷售的解決方案的比例。這實際上是關於我們如何以最大限度地利用我們所享有的本地市場能力的方式來推動我們的業務。就週轉或變化的速度而言，您對此有什麼看法。就我們現在偏離航線而言，我認為這就像橫渡海洋的船一樣，如果它的轉向指南針僅偏離 1％，偏離幾度，在第一天左右，可能不會很明顯，可能偏離航線幾百碼。

So by the time you reach the other side of the ocean, you might miss your intended port by a couple of hundred miles. And while a business is a perpetuity it doesn't have a destination, the same thing is true by being a little bit off in a number of these areas, but always off for the wrong side, we've gotten off course and you can see that clearly in our margin profile. Getting back on course is about making small course adjustments in a variety of places within our business. It's not big changes. It's not blowing up anything that we do today.

因此，當您到達大洋彼岸時，您可能會偏離預定港口數百英里。雖然一個企業是永恆的，但它沒有目的地，同樣的情況也是如此，在這些領域中有點偏離，但總是偏離錯誤的一邊，我們已經偏離了軌道，你可以在我們的保證金概況中可以清楚地看到這一點。回到正軌就是在我們業務的各個方面進行小的路線調整。這並不是什麼大的改變。它並沒有炸毀我們今天所做的任何事情。

We don't need entirely new sales force. We don't need anything that we don't already have within our portfolio. It's about the small adjustments, some of which we've already started to make that will increasingly be seen in our financial results. So it doesn't happen in a day or a week, but it will happen consistently, I would say, give us a few quarters to start to see some of the impact. We'll point to some of the impacts as it happens as a living indicator will give you a report card as we proceed.

我們不需要全新的銷售團隊。我們不需要任何我們的產品組合中尚未擁有的東西。這是關於小的調整，其中一些我們已經開始進行，這些調整將越來越多地體現在我們的財務表現中。因此，這不會在一天或一周內發生，但它會持續發生，我想說，給我們幾個季度的時間來開始看到一些影響。當我們繼續進行時，我們將指出一些影響，因為即時指標將為您提供成績單。

But you should expect a slow but steady progression back in the right direction, which will be most clearly seen over time in gross margin rate of this business.

但您應該期待緩慢而穩定的進展回到正確的方向，隨著時間的推移，這一點將在該業務的毛利率中最明顯地體現出來。

The next question we have is from Brian Tanquilut of Jefferies.

我們的下一個問題來自 Jefferies 的 Brian Tanquilut。

This is Nur Robleh in for Brian. Tom, now that you are back at the helm, I guess I just want to first get a high-level forward view of what your strategic priorities are moving forward as we go into Q4 and into 2024?

我是努爾羅布萊 (Nur Robleh) 飾演布萊恩 (Brian)。湯姆，既然你重新掌舵，我想我只是想先從高層的角度了解一下，當我們進入第四季和 2024 年時，你的戰略重點是什麼？

The wide-open question. What I'm really excited about spending my time doing right now is getting back deep into the heart of the business and working with the teams to understand exactly where we are, which things are going well and what adjustments we need to make to make this business that extraordinary financial engine that used to be able to set your watch too, it's something that gives me great joy and it's one of the things I'm most excited about as I return to the business. This is an amazing business. It is under achieving, I think, by a wide degree, what its true potential is.

廣泛開放的問題。我真正感到興奮的是，我現在花時間做的是深入業務核心，與團隊合作，準確了解我們所處的位置、哪些事情進展順利以及我們需要做出哪些調整才能做到這一點業務是一個非凡的金融引擎，過去也可以設定你的手錶，這給我帶來了巨大的快樂，也是我重返業務時最興奮的事情之一。這是一門了不起的生意。我認為，它在很大程度上尚未實現其真正的潛力。

So getting there quickly again, is the biggest near-term priority that I have. Longer term, what makes agility unique is this is in a bet on a single technology. It's not a bet on a short-term trend. What we enjoy, what powers this financial engine is a local market infrastructure of teams and capabilities when it comes to managing, maintaining, repairing, mobilizing medical devices. The longer-term opportunity for this business is to continue to drive profitable volume, not just of the solutions that we enjoy today, but the others that we might build or acquire and a business really has untapped potential in terms of the future for it. So near term, it's getting back to a healthy margin profile. Longer term, it's really about driving growth organically and inorganically by driving meaningful volume through our local market infrastructure, where we can do it more profitably and without peer better than anyone.

因此，盡快再次實現這一目標是我近期的首要任務。從長遠來看，敏捷性的獨特之處在於它押注於單一技術。這不是對短期趨勢的押注。我們所享受的、推動這個金融引擎的是當地市場基礎設施​​的團隊和能力，在管理、維護、維修和調動醫療設備方面。該業務的長期機會是繼續推動盈利量，不僅是我們今天享受的解決方案，還有我們可能構建或收購的其他解決方案，以及業務在未來方面確實具有未開發的潛力。因此，短期內，它正在恢復健康的利潤狀況。從長遠來看，這實際上是透過我們當地的市場基礎設施​​推動有意義的銷量，從而有機和無機地推動成長，我們可以在其中獲得更多利潤，並且比任何同行都做得更好。

Great. And then for Jim, I guess, I'm curious to know some of your capital allocation priorities. You noted that you paused M&A and aren't doing any share buybacks. But given that half of the overall debt of the company is at a variable rate, how are you thinking about paying down the debt versus investing in the business?

偉大的。然後，對於吉姆，我想，我很想知道您的一些資本配置優先事項。您指出您暫停了併購，並且沒有進行任何股票回購。但考慮到公司總債務的一半是浮動利率的，您如何考慮償還債務與投資業務？

Yes. Look, I think we'll be very thoughtful about it. Obviously, we know our cost of debt has gone up. So I think we'll be pretty well balanced with both paying down debt as well as reinvesting in our business for all the reasons that Tom pointed out in his script. That's the way to think about it.

是的。聽著，我想我們會對此深思熟慮。顯然，我們知道我們的債務成本已經上升。因此，我認為，出於湯姆在腳本中指出的所有原因，我們將在償還債務和對我們的業務進行再投資方面取得很好的平衡。這就是思考問題的方式。

(Operator Instructions) The next question we have is from Kevin Fischbeck of Bank of America.

（操作員說明）我們的下一個問題來自美國銀行的 Kevin Fischbeck。

This is Nabil on for Kevin. Recently, hospitals have been talking about cost pressure from labor and professional fees. Is that having impact on your conversations with clients on where they can save money elsewhere? Or is it preventing them from having conversations with you at all because they're distracted by it.

這是納比爾為凱文代言的。最近，醫院一直在談論來自勞動力和專業費用的成本壓力。這是否會影響您與客戶討論他們可以在其他地方省錢的對話？或者這是否會阻止他們與您交談，因為他們會因此分心。

What we have long prided ourselves on as a company is being on the right side of health care. What that means for us is we have the opportunity every time we go into one of our customers' facilities to take on some of the work that they try to do for themselves and do it in a fundamentally different way. We don't have a badge flip model where we trade their employees for our outsourced employees, which really runs the risk of just adding cost for them. Rather, we can help them when it comes to the medical devices they own.

作為一家公司，我們長期以來一直引以為傲的是在醫療保健領域站在正確的一邊。這對我們來說意味著，每次我們進入客戶的工廠時，我們都有機會承擔他們試圖自己完成的一些工作，並以一種根本不同的方式完成。我們沒有徽章翻轉模型，用他們的員工交換我們的外包員工，這確實存在增加他們成本的風險。相反，我們可以在他們擁有的醫療設備方面為他們提供幫助。

Free up the excess capital tied up and owning too many medical devices and the costs -- the attending costs that come with supporting those devices, we can reduce their reliance on rental by driving the utilization of the equipment that they own. We can reduce their costs of repairing and maintaining their medical devices because we focus our solutions on delivering a hard dollar financial return for our customers, it's precisely when they're in this place when they feel that financial pressure. I think that our conversations are most powerful with our customers.

釋放多餘的資本和擁有太多的醫療設備和成本——支持這些設備所帶來的費用，我們可以透過提高他們擁有的設備的利用率來減少他們對租金的依賴。我們可以降低他們維修和維護醫療設備的成本，因為我們的解決方案專注於為客戶提供硬性的財務回報，而正是當他們感受到財務壓力時。我認為我們與客戶的對話最有影響力。

There are no further questions at this time. I would like to turn the floor back over to Tom Leonard for closing comments.

目前沒有其他問題。我想把發言權交還給湯姆·倫納德（Tom Leonard），請他發表結束語。

So first, I want to thank everyone for the opportunity to speak with you today. I'm 6 weeks now back in the business. I'm very excited to have the opportunity to be here. This truly is a business with a bright future. And our near-term challenges are both obvious and I think very manageable. So we're going to look forward to providing an update on our progress as we complete 2023. And as we share our goals as we turn the corner into a new year. And with that, I'll go ahead and conclude today's call.

首先，我要感謝大家今天有機會與大家交談。我現在已經回到公司六個星期了。我很高興有機會來到這裡。這確實是個有著光明前景的生意。我們近期的挑戰是顯而易見的，而且我認為非常容易應付。因此，我們期待在 2023 年結束時提供最新進展。在新的一年到來之際，我們分享我們的目標。就這樣，我將繼續結束今天的電話會議。

This concludes today's conference. Thank you for joining us. You may now disconnect your lines.

今天的會議到此結束。感謝您加入我們。現在您可以斷開線路。