APi Group Corp (APG) 2023 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to APi Group's Second Quarter 2023 Financial Results Conference Call. (Operator Instructions) Please note this call is being recorded. (Operator Instructions) I will now turn the call over to Adam Fee, Vice President of Investor Relations at APi Group. Please go ahead.

早上好，女士們、先生們，歡迎參加 APi 集團 2023 年第二季度財務業績電話會議。 （操作員說明）請注意此通話正在錄音。 （操作員指示）我現在將電話轉給 APi 集團投資者關係副總裁 Adam Fee。請繼續。

Thank you. Good morning, everyone, and thank you for joining our second quarter 2023 earnings conference call. Joining me on the call today are Russ Becker, our President and CEO; Kevin Krumm, our Executive Vice President and Chief Financial Officer; and Sir Martin Franklin and Jim Lillie, our Board Co-Chairs.

謝謝。大家早上好，感謝您參加我們的 2023 年第二季度收益電話會議。今天和我一起參加電話會議的是我們的總裁兼首席執行官 Russ Becker； Kevin Krumm，我們的執行副總裁兼首席財務官；以及我們的董事會聯合主席馬丁·富蘭克林爵士和吉姆·利利爵士。

Before we begin, I would like to remind you that certain statements in the company's earnings press release announcement and on this call are forward-looking statements, which are based on expectations, intentions and projections regarding the company's future performance, anticipated events or trends and other matters that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements.

在我們開始之前，我想提醒您，公司收益新聞稿公告和本次電話會議中的某些陳述均為前瞻性陳述，這些陳述基於對公司未來業績、預期事件或趨勢的預期、意圖和預測，以及其他不屬於歷史事實的事項。這些陳述不是對未來業績的保證，並受到已知和未知的風險、不確定性和其他因素的影響，這些因素可能導致實際結果與此類前瞻性陳述明示或暗示的結果存在重大差異。

In our press release and filings with the SEC, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, August 3, and we undertake no obligation to update any forward-looking statements we may make except as required by law.

在我們向美國證券交易委員會提交的新聞稿和文件中，我們詳細介紹了可能導致我們未來業績與預期不同的重大風險。我們的聲明截至今天（8 月 3 日），我們沒有義務更新我們可能做出的任何前瞻性聲明，除非法律要求。

As a reminder, we have posted a presentation detailing our second quarter financial performance on the Investor Relations page of our website. Our comments today will also include non-GAAP financial measures and other key operating metrics. A reconciliation of and other information regarding these items can be found in our press release and our presentation.

謹此提醒，我們已在網站的投資者關係頁面上發布了詳細介紹第二季度財務業績的演示文稿。我們今天的評論還將包括非公認會計準則財務指標和其他關鍵運營指標。有關這些項目的核對和其他信息可以在我們的新聞稿和演示文稿中找到。

It's now my pleasure to turn the call over to Jim.

現在我很高興將電話轉給吉姆。

Good morning. Thank you, Adam. APi delivered another strong quarter of results, including record net revenues, adjusted EBITDA and adjusted diluted earnings per share in an evolving macro environment. We continue to be pleased with the momentum APi is building with an outstanding first half of 2023.

早上好。謝謝你，亞當。 APi 再次公佈了強勁的季度業績，包括創紀錄的淨收入、調整後的 EBITDA 以及在不斷變化的宏觀環境中調整後的稀釋每股收益。我們仍然對 APi 的發展勢頭感到滿意，並在 2023 年上半年取得了出色的表現。

Russ and Kevin will speak to the performance of the business in more detail, but APi's consistently strong financial results speak to the direction we are heading and the strength of the company's recurring revenue service-focused business model as well as the discipline of the organization and its leadership team.

Russ 和 Kevin 將更詳細地談論公司的業績，但 APi 一貫強勁的財務業績說明了我們前進的方向、公司以經常性收入服務為中心的業務模式的實力以及組織和紀律。它的領導團隊。

We started this journey with Russ and the team nearly 4 years ago as a U.S.-focused business with approximately $4 billion in revenues. Today, we are significantly larger with an expectation of delivering over $7 billion in revenue in 2023.

大約 4 年前，我們與 Russ 和團隊一起開始了這一旅程，當時我們是一家專注於美國的企業，收入約為 40 億美元。如今，我們的規模已顯著擴大，預計 2023 年的收入將超過 70 億美元。

The quality of the business and our financial performance has also improved significantly. We are the #1 provider globally in a growing, highly fragmented fire and life safety market. We have confidence in the team's ability to expand adjusted EBITDA margins to 13% in 2025 and beyond as we continue to increase our inspection service and monitoring revenues.

業務質量和我們的財務業績也顯著提高。在不斷增長、高度分散的消防和生命安全市場中，我們是全球排名第一的供應商。隨著我們繼續增加檢查服務和監控收入，我們相信團隊有能力在 2025 年及以後將調整後 EBITDA 利潤率擴大至 13%。

Since becoming a public company, the team has made measurable progress and demonstrated a track record of disciplined, predictable and thoughtful decisions regarding capital allocation, maintaining our focus on tuck-in M&A at appropriate multiples while consistently delivering financial results above expectations across a variable macroeconomic backdrop. We have great confidence in the business, and we believe that our laser focus on our long-term 13/60/80 value creation targets will generate outsized investor returns through 2025 and beyond.

自成為上市公司以來，該團隊取得了可衡量的進步，並在資本配置方面展現了紀律嚴明、可預測和深思熟慮的決策記錄，保持了我們對適當倍數的併購的關注，同時在不斷變化的宏觀經濟背景下始終如一地提供高於預期的財務業績背景。我們對這項業務充滿信心，我們相信，我們對 13/60/80 長期價值創造目標的高度關注將在 2025 年及以後為投資者帶來巨額回報。

As a reminder, these include organic revenue growth above the industry average: adjusted EBITDA margins of 13% in 2025, long-term revenues of 60% from inspection, service and monitoring and long-term adjusted free cash flow of 80%. We look forward to updating you on the progress in the second half of the year.

提醒一下，其中包括高於行業平均水平的有機收入增長：2025 年調整後 EBITDA 利潤率為 13%，來自檢查、服務和監控的長期收入為 60%，長期調整後自由現金流為 80%。我們期待向您通報下半年的最新進展。

And with that, I will hand the call over to Russ to talk about the real results.

接下來，我會將電話轉交給 Russ，讓他談論真正的結果。

Thank you, Jim. Good morning, everyone. Thank you for taking the time to join our call this morning. Jim mentioned our 13/60/80 long-term shareholder value creation model that you see once again included in our presentation. As I mentioned last quarter, we are relentlessly focused on driving this strategy with our specific focus of achieving 13% adjusted EBITDA margins by 2025.

謝謝你，吉姆。大家，早安。感謝您今天早上抽出時間參加我們的電話會議。 Jim 提到了我們的 13/60/80 長期股東價值創造模型，您會在我們的演示中再次看到該模型。正如我上季度提到的，我們堅持不懈地致力於推動這一戰略，具體目標是到 2025 年實現 13% 的調整後 EBITDA 利潤率。

I continue to speak to our leaders about how they can help us deliver on this strategy when I'm visiting our locations around the world. We are aligned as an organization in what we want to achieve and how to make it happen.

當我訪問我們在世界各地的工廠時，我會繼續與我們的領導人討論他們如何幫助我們實現這一戰略。作為一個組織，我們在想要實現的目標以及如何實現這一目標方面保持一致。

During today's call, I will begin my remarks by briefly commenting on our record second quarter results as well as our continued progress towards delivering on our stated strategic goals in a macro environment that continues to be volatile. I will then touch on the long-term organizational investment behind our inspection-first model and the benefits that it's driving in our financial results. Finally, I'll recap our recent M&A activity and the positive momentum of the business before turning the call over to Kevin, who will walk through our financial results and guidance in more detail.

在今天的電話會議上，我將首先簡要評論我們創紀錄的第二季度業績，以及我們在持續波動的宏觀環境中實現既定戰略目標的持續進展。然後，我將談談我們的檢查優先模式背後的長期組織投資以及它為我們的財務業績帶來的好處。最後，我將回顧一下我們最近的併購活動和業務的積極勢頭，然後將電話轉給凱文，他將更詳細地介紹我們的財務業績和指導。

As you've heard me say on prior calls, the safety, health and well-being of each of our 29,000 leaders remains our #1 priority. We remain grateful for their hard work and dedication to APi. We believe we have a differentiated approach to leader development for every teammate at APi but specifically for our field leaders, who interact with our customers on a daily basis.

正如您在之前的電話會議中聽到的那樣，我們 29,000 名領導人中每一位領導人的安全、健康和福祉仍然是我們的第一要務。我們仍然感謝他們的辛勤工作和對 APi 的奉獻。我們相信，我們為 APi 的每位團隊成員，特別是每天與客戶互動的現場領導者，提供差異化​​的領導者發展方法。

We will always prioritize investing in the men and women in the field as human beings and aim to provide each of them with training, leadership development and advancement opportunities. At APi, our field leaders have careers, not just a job.

我們將始終優先投資於該領域的男性和女性，並致力於為他們每個人提供培訓、領導力發展和晉昇機會。在 APi，我們的現場領導者擁有職業生涯，而不僅僅是一份工作。

We prioritize this investment because we recognize that our success only happens when our branches and field leaders are successful. This commitment is one of the foundational principles we believe will continue to enhance shareholder value.

我們優先考慮這項投資，因為我們認識到，只有當我們的分支機構和現場領導者取得成功時，我們才會成功。這一承諾是我們相信將繼續提高股東價值的基本原則之一。

Turning to the second quarter. I'm again pleased with the record results delivered by our global team as we continue to see robust demand for the services we offer across the business.

轉向第二季度。我再次對我們的全球團隊取得的創紀錄成果感到滿意，因為我們繼續看到整個企業對我們提供的服務的強勁需求。

Net revenues grew organically by 7.6% in the quarter and by 9.7% year-to-date, reaching $1.8 billion for the 3 months ended June 30, 2023, representing the ninth straight quarter of mid-single-digit or higher organic growth. Importantly and in line with our strategic initiatives, we saw a double-digit increase in inspection, service and monitoring revenue as we march towards our long-term goal of 60% of total net revenues from inspection, service and monitoring.

本季度淨收入有機增長 7.6%，年初至今增長 9.7%，截至 2023 年 6 月 30 日的三個月達到 18 億美元，代表連續第九個季度實現中個位數或更高的有機增長。重要的是，根據我們的戰略舉措，我們的檢查、服務和監控收入實現了兩位數的增長，我們正朝著檢查、服務和監控佔總淨收入的 60% 的長期目標邁進。

U.S. Life Safety continued its strong performance with organic growth of approximately 12% in the second quarter and approximately 16% year-to-date led by double-digit plus inspection growth, which we have achieved in our U.S. Life Safety business each quarter since the pandemic.

U.S. Life Safety continued its strong performance with organic growth of approximately 12% in the second quarter and approximately 16% year-to-date led by double-digit plus inspection growth, which we have achieved in our U.S. Life Safety business each quarter since the大流行.

In line with our strategic initiatives, we continue to see strong year-over-year improvement in adjusted gross margin in the second quarter, up 160 basis points. I am pleased with the leadership team's ongoing commitment to driving gross margin improvements through pricing activities, growing higher-margin service work and maintaining discipline in customer, project and end market selection.

根據我們的戰略舉措，我們繼續看到第二季度調整後毛利率同比強勁改善，增長了 160 個基點。我對領導團隊持續致力於通過定價活動推動毛利率提高、發展利潤率更高的服務工作以及維持客戶、項目和最終市場選擇的紀律感到高興。

I want to take a moment to update you on a critical investment we have made over the last decade to become an inspection-first organization and how this commitment drives financial results, allows for more disciplined customer and project selection and helps to build a protective moat around the business. We fundamentally believe that targeting statutorily mandated inspections at existing facilities and providing excellent service on those inspections drives repeatable business and creates sticky customer relationships.

我想花點時間向您介紹我們在過去十年中為成為檢查優先組織而進行的一項關鍵投資的最新情況，以及這一承諾如何推動財務業績、允許更嚴格的客戶和項目選擇以及幫助建立護城河圍繞業務。我們從根本上相信，針對現有設施進行法定強制檢查並為這些檢查提供優質服務可以推動可重複的業務並建立粘性的客戶關係。

When those customers consider expansion plans, we are no longer competing solely on price, but instead can leverage our position as an excellent service provider with our customers to drive higher-margin installation opportunities. We target double-digit quarterly growth in core inspection revenues, and we are continuing to build what we believe is the best global inspection sales organization focused on driving this growth. But it comes down to a lot more than just selling the inspection.

當這些客戶考慮擴張計劃時，我們不再僅僅在價格上競爭，而是可以利用我們作為優秀服務提供商的地位與客戶一起推動更高利潤的安裝機會。我們的目標是核心檢查收入實現兩位數的季度增長，並且我們正在繼續建立我們認為是最好的全球檢查銷售組織，專注於推動這一增長。但歸根結底，這不僅僅是出售檢查。

Inspections are a highly coordinated process requiring field and office collaboration with the customer. This multistep process requires a significant amount of infrastructure and training to do well as well as the right leaders in the field. We've equipped our field leaders with best-in-class technology and invested in multiple instruction training centers and programs to help to develop our field leaders and help enable them to provide great service to our diverse customer base.

檢查是一個高度協調的過程，需要與客戶進行現場和辦公室協作。這個多步驟的過程需要大量的基礎設施和培訓以及該領域合適的領導者才能做好。我們為我們的現場領導者配備了一流的技術，並投資了多個指導培訓中心和項目，以幫助培養我們的現場領導者，幫助他們為我們多元化的客戶群提供優質的服務。

Most competitors would rather pursue large installation jobs than recurring, higher margin, smaller invoice inspection work. Our investment in and commitment to the inspection-first model over the last decade is a key differentiator and has made growing inspection increasingly within our control. We believe we are ahead of any competitor who would attempt to replicate this strategy. And our investments, sales force and scale have created a large barrier to entry.

大多數競爭對手寧願從事大型安裝工作，也不願從事重複性的、利潤更高、規模較小的發票檢查工作。過去十年來，我們對檢查優先模式的投資和承諾是一個關鍵的差異化因素，並使不斷增長的檢查越來越在我們的控制範圍之內。我們相信，我們領先於任何試圖複製這一戰略的競爭對手。我們的投資、銷售隊伍和規模已經形成了巨大的進入壁壘。

As a reminder, in most cases, these inspections need to take place at least once per year or in some cases, more frequently. And we have data that every dollar of core inspection revenue leads to an average of $3 to $4 of subsequent service revenue.

提醒一下，在大多數情況下，這些檢查需要每年至少進行一次，或者在某些情況下需要更頻繁。我們有數據顯示，每 1 美元的核心檢查收入平均會帶來 3 至 4 美元的後續服務收入。

On average, core inspection and service revenue comes in at 10%-plus higher gross margins than project revenue. We included a slide in the presentation that shows the 10-year journey of one of our branches that was an early adopter of the inspection-first strategy and it's impact on that brand's profitability over time.

平均而言，核心檢查和服務收入的毛利率比項目收入高 10% 以上。我們在演示文稿中添加了一張幻燈片，展示了我們的一個分支機構（該分支機構是檢查優先策略的早期採用者）的10 年曆程，以及隨著時間的推移該分支機構對該品牌盈利能力的影響。

An underappreciated benefit of continuing to grow inspection, service and monitoring revenues beyond serving our customers better is the ability to then be much more selective on the installation work we choose to do, resulting in margin expansion on the project side of the business as well. For this specific branch, EBITDA margins expanded from low single digits to mid 20% in less than 23 -- in less than 10 years.

除了更好地為客戶服務之外，繼續增加檢查、服務和監控收入的一個未被充分認識的好處是，我們能夠對我們選擇進行的安裝工作更具選擇性，從而導致業務項目方面的利潤率擴大。對於這個特定的分支機構，EBITDA 利潤率在不到 23 年（不到 10 年）的時間內從較低的個位數擴大到 20% 左右。

You can see the benefit of this approach come through in our consolidated results where we have delivered gross margin expansion for 6 straight quarters and an improved quality of the projects in our backlog, which remains healthy and strong. Our leaders continue to execute this strategy across our branch network, and I'm excited for the long-term opportunity in our international business where we are only in the early stages of instilling this strategy.

您可以在我們的綜合業績中看到這種方法的好處，我們已連續 6 個季度實現毛利率擴張，並且積壓項目的質量得到提高，保持健康和強勁。我們的領導者繼續在我們的分支機構網絡中執行這一戰略，我對我們國際業務中的長期機會感到興奮，我們僅處於灌輸這一戰略的早期階段。

The international business continues to show progress with another quarter of solid growth as we continue to be intentional about targeting only work that is additive to achieving our 2025 13% adjusted EBITDA margin target. The $100 million value capture plan, which is another key contributor to our 13% target, remains on track.

國際業務繼續取得進展，又一個季度實現穩健增長，因為我們繼續有意只專注於有助於實現 2025 年 13% 調整後 EBITDA 利潤率目標的工作。 1 億美元的價值獲取計劃是實現 13% 目標的另一個關鍵因素，該計劃仍在按計劃進行。

Moving on to M&A. Our free cash flow generation and EBITDA growth in the first half of the year gives us confidence in our ability to reduce net leverage in line with our target net leverage range of 2 to 2.5x near the end of the year while returning to bolt-on M&A.

繼續進行併購。上半年我們的自由現金流生成和 EBITDA 增長讓我們相信我們有能力降低淨槓桿率，以達到年底前 2 至 2.5 倍的目標淨槓桿率範圍，同時恢復補充性嘛。

As you may have seen in our July press release, we announced a return to bolt-on acquisitions that are immediately accretive to our adjusted EBITDA margin before synergies. The markets we operate in are highly fragmented, and the team remains focused on identifying the most attractive opportunities within our robust M&A pipeline.

正如您可能在我們 7 月份的新聞稿中看到的那樣，我們宣布恢復補強收購，這些收購將立即增加我們調整後的 EBITDA 利潤率（未產生協同效應）。我們經營的市場高度分散，團隊仍然專注於在我們強大的併購渠道中尋找最具吸引力的機會。

I'm excited to continue to add new businesses and their leaders to the APi family. We have strong momentum across our global platform as we enter the back half of the year, allowing us to again increase our full year financial guidance. Kevin will provide details on our updated guidance.

我很高興能夠繼續為 APi 家族增添新的企業及其領導者。進入下半年，我們的全球平台勢頭強勁，使我們能夠再次提高全年財務指導。凱文將提供有關我們更新指南的詳細信息。

In summary, while we remain focused on executing in the back half of the year, I'm proud of our team and how we delivered on our commitments and produced record financial results so far in 2023. Our field leaders continue to be the driving force of our performance. I'm truly grateful for what each of them has done to get us to where we are today.

總之，雖然我們仍然專注於下半年的執行，但我為我們的團隊以及我們如何兌現承諾並在 2023 年迄今為止取得創紀錄的財務業績感到自豪。我們的領域領導者仍然是驅動力我們的表現。我真的很感謝他們每個人為我們取得今天的成就所做的一切。

I would now like to hand the call over to Kevin to discuss our financial results and guidance in more detail. Kevin?

我現在想將電話轉交給凱文，更詳細地討論我們的財務業績和指導。凱文？

Thanks, Russ. Good morning, everyone. Reported net revenues for the 3 months ended June 30, 2023, increased by 7.4% to $1.8 billion compared to $1.6 billion in the prior year period. Net revenues increased organically for the same period by 7.6% driven by strong organic growth in both Safety and Specialty Services led by double-digit growth in service revenues.

謝謝，拉斯。大家，早安。截至 2023 年 6 月 30 日的三個月報告淨收入增長 7.4%，達到 18 億美元，而去年同期為 16 億美元。受服務收入兩位數增長帶動的安全和專業服務強勁有機增長的推動，同期淨收入有機增長 7.6%。

In the second quarter, growth in the Safety Services segment was approximately 1/2 driven by price and 1/2 by volume, while growth in Specialty Services segment was primarily driven by increased volumes, which were measured through labor hours. Adjusted gross margins for the 3 months ended June 30, 2023, grew to 28.3%, representing a 160 basis point increase compared to the prior year period driven by price increases, outsized growth in service revenues and project margin expansion across both segments. These factors were partially offset by inflation, which caused downward pressure on margins.

第二季度，安全服務部門的增長大約有1/2 是由價格驅動的，1/2 是由數量驅動的，而專業服務部門的增長主要是由數量增加驅動的，而數量的增加是通過工時來衡量的。截至 2023 年 6 月 30 日止 3 個月的調整後毛利率增長至 28.3%，較上年同期增長 160 個基點，原因是價格上漲、服務收入大幅增長以及兩個部門的項目利潤率擴張。這些因素部分被通貨膨脹所抵消，通貨膨脹造成了利潤率的下行壓力。

Adjusted EBITDA increased by 16.7% on a fixed currency basis for the 3 months ended June 30, 2023, with adjusted EBITDA margin coming in at 11.5%, representing an 80 basis point increase compared to the prior year period primarily due to the factors impacting gross margin, partially offset by investments to support revenue growth and the continued build-out of our global capabilities and infrastructure.

截至 2023 年 6 月 30 日的三個月，調整後 EBITDA 按固定貨幣計算增長 16.7%，調整後 EBITDA 利潤率為 11.5%，較上年同期增長 80 個基點，主要是由於影響毛利率的因素利潤率，部分被支持收入增長的投資以及我們全球能力和基礎設施的持續建設所抵消。

Adjusted diluted earnings per share for the second quarter was $0.41, representing a $0.04 increase compared to the prior year period. The increase was driven primarily by strong organic growth and margin expansion in both Safety and Specialty Services, partially offset by an increase in interest expense, representing a $0.03 headwind to adjusted diluted earnings per share in the quarter.

第二季度調整後稀釋每股收益為 0.41 美元，較去年同期增加 0.04 美元。這一增長主要是由安全和專業服務領域強勁的有機增長和利潤率擴張推動的，部分被利息支出的增加所抵消，這意味著本季度調整後的攤薄每股收益減少了 0.03 美元。

I will now discuss our results in more detail for Safety Services. Safety Services reported revenues for the 3 months ended June 30, 2023, increased by 6.9% to $1.2 billion compared to $1.1 billion in the prior year period. Net revenues increased organically by 7.3% driven by double-digit core inspection revenue growth and robust growth in U.S. Life Safety, partially offset by planned customer attrition in our international business and increased discipline in customer and project selection in our HVAC business.

我現在將更詳細地討論我們的安全服務結果。安全服務公司報告稱，截至 2023 年 6 月 30 日的三個月收入增長了 6.9%，達到 12 億美元，而上年同期為 11 億美元。在核心檢查收入兩位數增長和美國生命安全業務強勁增長的推動下，淨收入有機增長了7.3%，但部分被我們國際業務中的計劃客戶流失以及我們HVAC 業務中客戶和項目選擇方面的嚴格要求所抵消。

Adjusted gross margins for the 3 months ended June 30, 2023, was 32.4%, representing record high adjusted gross margin and a 180 basis point increase compared with the prior year adjusted gross margin driven by price increases, improved business mix on inspection service and monitoring revenue as well as significant improvement in project margins, partially offset by inflation, which caused downward pressure on margins.

截至2023年6月30日止三個月的調整後毛利率為32.4%，調整後毛利率創歷史新高，較上年同期增長180個基點，受價格上漲、檢驗服務和監控業務組合改善的推動收入以及項目利潤率的顯著改善，部分被通貨膨脹所抵消，通貨膨脹造成了利潤率的下行壓力。

Adjusted EBITDA increased by 18.7% on a fixed currency basis for the 3 months ended June 30, 2023. And adjusted EBITDA margin was 13%, representing a 120 basis point increase compared to the prior year period primarily due to the factors impacting adjusted gross margin, partially offset by investments made to support revenue growth.

截至2023 年6 月30 日止3 個月，調整後EBITDA 按固定貨幣計算增長18.7%。調整後EBITDA 利潤率為13%，較上年同期增長120 個基點，主要是由於影響調整後毛利率的因素，部分被支持收入增長的投資所抵消。

I will now discuss our results in more detail for our Specialty Services segment. Specialty Services reported revenues for the 3 months ended June 30, 2023, increased by 7.1% to $555 million compared to $518 million in the prior year period primarily driven by double-digit growth in service revenues led by growth in specialty contracting, infrastructure and utility markets. It's partially offset by continued disciplined customer and project selection.

我現在將更詳細地討論我們的專業服務部門的結果。專業服務報告截至2023 年6 月30 日的三個月收入增長7.1%，達到5.55 億美元，而去年同期為5.18 億美元，這主要是由於專業承包、基礎設施和公用事業的增長帶動服務收入實現兩位數增長。市場。持續嚴格的客戶和項目選擇部分抵消了這一影響。

Adjusted gross margin for the 3 months ended June 30, 2023, was 19.1%, representing a 170 basis point increase compared to the prior year period primarily driven by strong organic service revenues as well as significant improvement in project gross margins driven by disciplined customer and project selection. Adjusted EBITDA increased by 15% for the 3 months ending June 30, 2023. And adjusted EBITDA margin was 12.4%, representing an 80 basis point increase compared to the prior year period primarily due to the factors impacting adjusted gross margin, partially offset by timing of some employee-related expenses and other onetime costs.

截至2023 年6 月30 日止3 個月的調整後毛利率為19.1%，與上年同期相比增長170 個基點，這主要是由於強勁的有機服務收入以及嚴格的客戶和嚴格的客戶和項目推動的項目毛利率的顯著改善。項目選擇。截至2023 年6 月30 日的三個月，調整後EBITDA 增長了15%。調整後EBITDA 利潤率為12.4%，較上年同期增長80 個基點，主要是由於影響調整後毛利率的因素，部分被時間安排所抵消一些與員工相關的費用和其他一次性成本。

We continue to focus on driving free cash flow conversion improvements year-over-year, progressing towards our long-term goal of 80% free cash flow conversion. For the 3 months ended June 30, 2023, adjusted free cash flow came in at $91 million, reflecting an improvement of $28 million versus the prior year period and an adjusted free cash flow conversion of 45%.

我們繼續專注於推動自由現金流轉換逐年提高，朝著 80% 自由現金流轉換的長期目標邁進。截至 2023 年 6 月 30 日的三個月，調整後自由現金流為 9100 萬美元，較上年同期增加 2800 萬美元，調整後自由現金流轉換率為 45%。

For the 6 months of the year, which, as a reminder, is seasonally slower than the back half of the year, we delivered $75 million improvement in free cash flow when compared to the first 6 months of 2022. Free cash flow generation has been and continues to be a priority across all of APi. And our performance in the first half of the year positions us to deliver on our 2023 guidance of at or above 65% adjusted free cash flow conversion, representing an adjusted free cash flow delivery of over $500 million at the midpoint of our updated adjusted EBITDA guidance.

提醒一下，今年的 6 個月比下半年要慢，但與 2022 年前 6 個月相比，我們的自由現金流改善了 7500 萬美元。並且仍然是所有 APi 的優先事項。我們上半年的業績使我們能夠實現2023 年調整後自由現金流轉換率達到或超過65% 的指導，這意味著按照我們更新後的調整後EBITDA 指導的中點計算，調整後自由現金流交付超過5 億美元。

At the end of Q2, our net debt to adjusted EBITDA was approximately 2.9x even with the return to margin accretive bolt-on M&A in the quarter. We remain laser focused on cash generation and deleveraging through our stated long-term net leverage target of 2 to 2.5x with current expectations to be below 2.5x net debt to adjusted EBITDA by year-end 2023. Our balance sheet remains strong with a weighted average maturity of approximately 5 years with the earliest maturity in 2026.

截至第二季度末，我們的淨債務與調整後 EBITDA 之比約為 2.9 倍，即使本季度恢復了利潤增值的附加併購。我們仍然專注於現金生成和去槓桿化，我們既定的長期淨槓桿目標為2 至2.5 倍，目前預計到2023 年底，淨債務與調整後EBITDA 之比將低於2.5 倍。我們的資產負債表仍然強勁，加權後的資產負債表依然強勁。平均到期日約為5年，最早到期日為2026年。

I will now discuss our guidance for Q3 and full year 2023. As a reminder, our guidance incorporates the expected impact of foreign exchange fluctuations, which we expect to be a modest tailwind in the second half of the year when compared to 2022 after being a headwind in the first half of 2023.

我現在將討論我們對2023 年第三季度和全年的指導。提醒一下，我們的指導考慮了外匯波動的預期影響，我們預計與2022 年相比，下半年匯率波動將是一個溫和的推動因素。 2023 年上半年的逆風。

I'm pleased with the performance year-to-date and the momentum of the business, which gives us confidence to raise our prior full year guidance for reported net revenues and adjusted EBITDA. We now expect full year reported net revenues of $7.015 billion to $7.075 billion, up from $6.875 billion to $7.025 billion at current currency expectations. This represents reported net revenue growth of approximately 7% to 8%.

我對今年迄今為止的業績和業務勢頭感到滿意，這讓我們有信心提高之前報告的淨收入和調整後 EBITDA 的全年指引。我們目前預計全年報告淨收入為 70.15 億美元至 70.75 億美元，高於當前匯率預期的 68.75 億美元至 70.25 億美元。這意味著報告的淨收入增長約 7% 至 8%。

We now expect full year adjusted EBITDA of $765 million to $785 million, up from $740 million to $780 million, which represents reported adjusted EBITDA growth of approximately 14% to 17% and adjusted EBITDA margin of approximately 11% at the midpoint.

我們目前預計全年調整後EBITDA 為7.65 億美元至7.85 億美元，高於7.4 億美元至7.8 億美元，這意味著報告的調整後EBITDA 增長約14% 至17%，調整後EBITDA 利潤率中值約為11%。

In terms of Q3, we expect net revenue -- we expect reported net revenues of $1.86 billion to $1.89 billion. This guidance represents reported net revenue growth of approximately 7% to 9%. We expect Q3 adjusted EBITDA of $215 million to $225 million, which represents reported adjusted EBITDA growth of approximately 16% to 21%.

就第三季度而言，我們預計淨收入——我們預計報告的淨收入為 18.6 億美元至 18.9 億美元。該指引代表報告的淨收入增長約 7% 至 9%。我們預計第三季度調整後 EBITDA 為 2.15 億美元至 2.25 億美元，這意味著報告的調整後 EBITDA 增長約為 16% 至 21%。

For 2023, we anticipate interest expense to be approximately $150 million, depreciation to be approximately $85 million, capital expenditures to be approximately $95 million prior to any potential sale of equipment and our adjusted effective cash tax rate to be approximately 24%. We expect our adjusted diluted weighted average share count for the third quarter to be approximately 272 million.

2023 年，我們預計在任何潛在的設備銷售之前，利息支出約為 1.5 億美元，折舊約為 8500 萬美元，資本支出約為 9500 萬美元，調整後的有效現金稅率約為 24%。我們預計第三季度調整後稀釋加權平均股數約為 2.72 億股。

Overall, I'm pleased with the results delivered by our global team in the second quarter and first half of 2023. I look forward to sharing more updates on our progress throughout the year.

總體而言，我對我們的全球團隊在 2023 年第二季度和上半年取得的成果感到滿意。我期待分享更多有關我們全年進展的最新信息。

I will now turn the call back over to Russ.

我現在將把電話轉回給拉斯。

Thanks, Kevin. As you've heard, APi delivered record financial results in the second quarter and the first half of the year. The business continues to perform well, and we continue to deliver on our commitments. I'm confident in our leaders' ability to generate continued momentum in the business, build on historically strong execution and consistently drive margin expansion in any macro environment -- any macroeconomic environment through increasing high-margin inspection, service and monitoring revenue, pricing initiatives, operational improvements and their relentless focus on customer and project selection.

謝謝，凱文。正如您所聽說的，APi 在第二季度和上半年取得了創紀錄的財務業績。業務繼續表現良好，我們繼續履行我們的承諾。我相信我們的領導者有能力在任何宏觀環境下（任何宏觀經濟環境）通過增加高利潤檢查、服務和監控收入、定價舉措，在業務中產生持續的動力，建立歷史上強大的執行力，並持續推動利潤增長、運營改進以及他們對客戶和項目選擇的不懈關注。

As reflected in the increased guidance Kevin just went through, we had strong momentum across our global platform. Backlog remains healthy. And as planned, we'll continue to focus on the right work for the right customers in the right markets.

正如凱文剛剛通過的增加指導所反映的那樣，我們的全球平台勢頭強勁。積壓訂單保持健康。按照計劃，我們將繼續專注於在正確的市場為正確的客戶提供正確的工作。

We believe we can create sustainable shareholder value by focusing on our 13/60/80 long-term value creation targets. As a reminder, these include above-market organic growth and adjusted EBITDA margin of 13%-plus by 2025. As we look to 2024 and beyond, we have great confidence in the business and the direction we're heading.

我們相信，通過專注於 13/60/80 長期價值創造目標，我們可以創造可持續的股東價值。提醒一下，這些包括到 2025 年高於市場的有機增長和調整後 EBITDA 利潤率超過 13%。展望 2024 年及以後，我們對業務和我們前進的方向充滿信心。

With that, I would now like to turn the call back over to the operator and open the call for Q&A.

這樣，我現在想將呼叫轉回給接線員並打開呼叫進行問答。

(Operator Instructions) Your first question comes from Jon Tanwanteng of CJS Securities.

（操作員指令）您的第一個問題來自CJS Securities 的Jon Tanwanteng。

My first one, just on the increased guidance. How much of that is contribution from acquisitions that you made recently and any changes in FX? Any color, that would be helpful.

我的第一個，只是關於增加指導。其中有多少來自您最近進行的收購以及外彙的任何變化？任何顏色，都會有幫助。

Yes, I heard the first part of the question, so I'll answer that. And the second part, you'll have to come back to me on. So our most recent acquisitions announced as part of our July lease are in our guidance. The impact of that in the back half of the year from an EBITDA standpoint is at or around a couple million dollars.

是的，我聽到了問題的第一部分，所以我會回答。第二部分，你必須回到我身邊。因此，作為 7 月租賃的一部分，我們最近宣布的收購也在我們的指導範圍內。從 EBITDA 的角度來看，今年下半年的影響約為數百萬美元。

That's great. I was wondering about FX contribution as well?

那太棒了。我也想知道外匯貢獻？

FX contribution?

外匯貢獻？

Yes, if any.

是的，如果有的話。

FX in the back half of the year at EBITDA will be somewhere approximately $2 million to $4 million at current currency expectations.

按當前匯率預期，今年下半年的外匯 EBITDA 約為 200 萬至 400 萬美元。

Okay. Great. And then just I'm looking at a little bit longer term, can you talk about the M&A pipeline that you're seeing even with the smaller tuck-ins that you've been doing? Are you seeing more opportunities out there? And is there an opportunity for anything that might be a larger, or more accelerated as you look at the pipeline?

好的。偉大的。然後，我著眼於更長遠的發展，您能否談談您所看到的併購渠道，即使您一直在進行規模較小的收購？您是否看到了更多機會？當你審視管道時，是否有機會進行規模更大或速度更快的項目？

Thanks, Jon, and thank you for your continued interest in the company. Our M&A pipeline remains really robust. And as we've shared in the past, and we've been focused on North America primarily in the U.S. in the Life Safety space just partly because we see the same opportunities available to us in our international business. But we remain focused on executing on our value capture program in that part of our business.

謝謝喬恩，也感謝您對公司的持續關注。我們的併購渠道仍然非常強勁。正如我們過去所分享的，我們一直專注於北美（主要是美國）的生命安全領域，部分原因是我們在國際業務中看到了同樣的機會。但我們仍然專注於在這部分業務中執行我們的價值捕獲計劃。

But the pipeline is really robust. And I think our company leaders do a really good job of helping us build that pipeline along our M&A leadership inside the company. But there's plenty of opportunities, and we continue to look forward to pursuing them and making sure that we add the right businesses to the APi family.

但管道確實很強大。我認為我們的公司領導在幫助我們沿著公司內部的併購領導層建立這條管道方面做得非常好。但機會很多，我們將繼續期待抓住這些機會，並確保為 APi 家族添加合適的業務。

On these bolt-on acquisitions, the #1 criteria for us is to find the right fit, make sure we're culturally aligned and we share common values. And when we do that, that's one of the, I think, one of the primary benefits we have as we think about why we're able to acquire these companies at reasonable purchase prices, et cetera. So lots of opportunities for us. Excited for what the rest of the year is going to bring and potentially in the next year.

在這些補強收購中，我們的首要標準是找到合適的人選，確保我們在文化上保持一致並擁有共同的價值觀。當我們這樣做時，我認為，當我們思考為什麼我們能夠以合理的購買價格收購這些公司等等時，這是我們擁有的主要好處之一。我們有很多機會。對今年剩餘時間以及明年可能帶來的事情感到興奮。

Your next question comes from Julian Mitchell of Barclays.

你的下一個問題來自巴克萊銀行的朱利安·米切爾。

This is Kiran Patel-O'Connor on for Julian. I just wanted to ask on Life Safety. The organic growth there in the quarter and the first half was pretty strong. So I was just curious how much of that organic growth that you've seen year-to-date is market-related versus market share gains?

我是朱利安的基蘭·帕特爾-奧康納。我只是想問一下生命安全問題。本季度和上半年的有機增長相當強勁。所以我只是很好奇，今年迄今為止您所看到的有機增長有多少是與市場相關的，而不是與市場份額的增長有關的？

This is Kevin. I would say that the lion's share of the growth that we're seeing in the U.S. Life Safety business is share gains. We continue to win business through our inspection-first model that continues to feed them the service side of the business. But we're going out there and taking business and competition, and that's the primary driver.

這是凱文.我想說，我們在美國生命安全業務中看到的增長的最大份額是份額收益。我們通過檢查優先的模式繼續贏得業務，繼續為他們提供業務服務。但我們正在走出去，開展業務和競爭，這是主要的驅動力。

Got it. That's helpful. And the market share gains are -- I know you talked about the market being very fragmented. Is it really smaller players that you're taking it from? Or are there larger competitors that you're getting these market share gains from?

知道了。這很有幫助。市場份額的增長是——我知道你談到市場非常分散。你真的是從較小的玩家那裡拿走的嗎？或者是否有更大的競爭對手可以讓您獲得這些市場份額？

I mean, I think it's probably a little bit of both when you think about it. And the key driver for us there is the continued build-out and growth of our inspection sales team. And as we continue to build that group out, we will continue to take share.

我的意思是，當你仔細考慮時，我認為這可能是兩者兼而有之。我們的關鍵驅動力是我們檢驗銷售團隊的持續建設和成長。隨著我們繼續擴大該團隊的規模，我們將繼續分享。

As I mentioned in my remarks, the more traditional way of companies capturing service and inspection work is to do the installation work first. And when the installation work is basically 90% complete, they try to approach that customer and sell them on a service and inspection contract.

正如我在發言中提到的，公司捕獲服務和檢查工作的更傳統方式是先進行安裝工作。當安裝工作基本完成 90% 時，他們會嘗試聯繫該客戶並簽訂服務和檢查合同。

And we've put that model on here and are really, really focused on calling on the already built environment. And that sales force is out pounding the pavement, building relationships with potential customers. And so you're taking that share away from whether that's a large player or a small player. And it's about having a different approach and a different tactic as we go after that business.

我們已經將該模型放在這裡，並且非常非常專注於調用已構建的環境。該銷售團隊正在積極開展工作，與潛在客戶建立關係。因此，無論是大玩家還是小玩家，你都會奪走這一份額。這就是我們在追求該業務時採用不同的方法和策略。

Got it. And then just my follow-up would be, you talked about strategic pricing initiatives. And I was just curious, where are these focused and if you're getting any pushback from customers on them and if there's any churn as a result?

知道了。然後我的後續行動是，您談到了戰略定價舉措。我只是很好奇，這些產品的重點在哪裡，是否會受到客戶的抵制，是否會因此而產生任何流失？

So I mean, number one, we basically, especially in our inspection and service contracts, we build in price escalation. That is typically timed with the price escalation associated with our -- with the wage rate and labor increases that come along with it.

所以我的意思是，第一，我們基本上，特別是在我們的檢查和服務合同中，我們會提高價格。這通常與與我們相關的價格上漲以及隨之而來的工資率和勞動力增加同時發生。

So we're actively building that price increase into these contracts as we're out selling and pitching. We have some situations -- and I would say in general, I would say that these price increases have been very, very sticky. We have had some attrition, some of this attrition has been on purpose. I would say more of that potentially in the international business.

因此，當我們進行銷售和推銷時，我們正在積極地將價格上漲納入這些合同中。我們遇到了一些情況——總的來說，我想說的是，這些價格上漲非常非常棘手。我們有一些人員流失，其中一些人員流失是故意的。我想在國際業務中更多地談論這一點。

And if you go all the way back to last November to the Investor Day that we had in New York and Andrew White made his presentation, he showed 5% customer attrition that basically we plan for. Some of that would come through price increases because we had poor performing contracts that we needed to deal with the pricing on. We haven't seen 5% customer attrition. It's been probably 2% to 3%, something like that. But in general, our price increases have been sticky.

如果你追溯到去年 11 月我們在紐約舉行的投資者日，安德魯·懷特 (Andrew White) 做了他的演講，他展示了 5% 的客戶流失率，這基本上是我們計劃的。其中一些將通過價格上漲來實現，因為我們的合同表現不佳，我們需要處理定價問題。我們還沒有看到 5% 的客戶流失。大概是 2% 到 3% 之類的。但總的來說，我們的價格上漲是有粘性的。

Your next question comes from Kathryn Thompson of Thompson Research Group.

您的下一個問題來自湯普森研究小組的凱瑟琳·湯普森。

This is actually Brian Biros on for Kathryn. To start on the -- I think contract revenue was called out at high single digits in the quarter, some part of the business, but I don't think I've heard you talk about that much. Can you just talk about trends in kind of that part of the business? Can we expect solid performance like that going forward? Or is this more of a onetime event in the quarter?

這實際上是布萊恩·比羅斯 (Brian Biros) 為凱瑟琳 (Kathryn) 配音的。首先，我認為本季度的合同收入達到了很高的個位數，這是業務的一部分，但我認為我沒有聽到你談論那麼多。您能談談這部分業務的趨勢嗎？我們能期待未來有這樣的穩定​​表現嗎？或者這更像是本季度的一次性事件？

Our contract revenue in the quarter was up organically, but it did not grow at the same pace on the service side. Our contract revenue, just to clarify, was at around mid- to low single-digit growth in the quarter.

我們本季度的合同收入有機增長，但服務方面的增長速度卻不同。需要澄清的是，我們的合同收入在本季度處於中低個位數增長。

Okay. Got it.

好的。知道了。

I think what you wanted to talk about was the margin expansion on that side of the business, which we continue to purposely moderate growth while we continue to focus on higher margin work with the right customers in the right end markets.

我認為您想談論的是業務方面的利潤擴張，我們繼續有目的地適度增長，同時我們繼續專注於與正確的終端市場中的正確客戶進行更高利潤的工作。

Okay. Got it. And then in the presentation deck, Slide 16, that visual shows that the branch growing margins. I think you guys touched on it on the prepared remarks. Can you just maybe bucket out how many branches are either closer to the beginning of that stage or closer to the end of that journey? Just trying to get a sense of how much impact this has going forward versus just the general push for more services.

好的。知道了。然後在演示文稿幻燈片 16 中，該視覺效果顯示該分支機構的利潤不斷增長。我想你們已經在準備好的發言中談到了這一點。您能否算出有多少分支更接近該階段的開始或接近該旅程的結束？只是想了解一下這對未來的影響有多大，而不是只是普遍推動更多服務。

Well, I mean, I think it's -- I mean, if you look at it from -- if you look at it across the entire breadth of the business, and you consider this branch, I'll just say, fully mature, and then if you think about our international piece of our business, you would say that it's premature. And so we stretch across the breadth of the business.

嗯，我的意思是，我認為——我的意思是，如果你從整個業務的角度來看它，並且你考慮這個分支，我只想說，完全成熟，並且那麼如果你考慮一下我們的國際業務，你會說現在還為時過早。因此，我們的業務範圍廣泛。

And if you look inside even North America, where we've been focused on the strategy for the last decade or so, we have different levels of adoption inside different parts of our business. And what I can tell you -- so it'd be really hard for me to say that on a scale of 1 to 10, we're at 5 or 6 or at a 7 because in some places, we're at 10. In some places, we're probably at 3 or 4.

如果你看看北美內部，我們在過去十年左右的時間裡一直專注於該戰略，我們業務的不同部分有不同程度的採用。我可以告訴你的是——所以我很難說，在 1 到 10 的範圍內，我們處於 5、6 或 7，因為在某些地方，我們處於 10。在某些地方，我們可能處於3 或4級。

But what I can tell you is that basically every one of our businesses now understands and has embraced this philosophy. And we are actively working to build out that sales force. As we continue to build out that sales force, we need to continue to recruit, train and develop the inspectors that do -- that can go out and actually inspect, do the inspection work, which is a key component of it. And we still have to then add service definitions to be able to support that work as well.

但我可以告訴你的是，基本上我們的每一個企業現在都理解並接受了這一理念。我們正在積極努力建設銷售隊伍。當我們繼續建立銷售隊伍時，我們需要繼續招募、培訓和發展檢查員，他們可以出去實際檢查，進行檢查工作，這是其中的關鍵組成部分。我們仍然必須添加服務定義才能支持這項工作。

So we've got the flywheel turning, I'd say, reasonably well in North America. And it's just starting to turn and probably needs a little more grease in the -- in our international business.

所以我想說，我們的飛輪在北美運轉得相當好。我們的國際業務剛剛開始轉變，可能需要更多的潤滑。

Your next question comes from Andy Kaplowitz of Citigroup.

您的下一個問題來自花旗集團的安迪·卡普洛維茨。

Russ, so you mentioned U.S. Life Safety still growing low double digits organic. And we talked about inspection market share gains. I know APi is quite nimble regarding its market focus, but could you give us more color into what end markets are driving that growth? And are there any markets that you are more concerned about in terms of slowing?

拉斯，所以你提到美國生命安全仍然以低兩位數有機增長。我們討論了檢查市場份額的增長。我知道 APi 在其市場重點方面非常靈活，但您能否為我們提供更多關於哪些終端市場正在推動這種增長的信息？您更擔心哪些市場的放緩？

Well, really -- thank you. Really, our focus is on data centers, semiconductor, health care, I would say to a certain degree, higher institution, aviation has really shown some strength as well as critical infrastructure. And those are really the primary end markets that we keep consistently trying to steer our business leaders to.

嗯，真的——謝謝。確實，我們的重點是數據中心、半導體、醫療保健，我想說在某種程度上，高等院校、航空業確實表現出了一定的實力以及關鍵基礎設施。這些確實是我們一直努力引導我們的業務領導者進入的主要終端市場。

Obviously, we remain -- commercial real estate, everybody is waiting for the shoe to drop there as all of these loans need to be refinanced over the course of the next 12 to 18 months, what kind of an impact that's going to have. If you're chasing basically developer-led commercial real estate projects, and that's what you do, that is really dead in the water. And fortunately, for us, that's a very, very small piece of our business and the work that we do.

顯然，我們仍然是商業房地產，每個人都在等待著這一切，因為所有這些貸款都需要在未來 12 到 18 個月內進行再融資，這將產生什麼樣的影響。如果你正在追逐基本上由開發商主導的商業房地產項目，而這就是你所做的，那就真的是死在水中了。幸運的是，對我們來說，這只是我們業務和工作中非常非常小的一部分。

And so I feel really good about the end markets that we're in. We can always be better. We can always be more disciplined. But I feel good about where we're at. And I can honestly tell you that the discipline that our business leaders are showing on project selection, customer selection and end market selection is probably at an all-time high. And I'm really, really proud of it.

因此，我對我們所處的終端市場感覺非常好。我們總是可以做得更好。我們總是可以更加自律。但我對我們現在的處境感覺很好。我可以誠實地告訴你，我們的企業領導者在項目選擇、客戶選擇和最終市場選擇方面所表現出的紀律可能是歷史最高的。我真的非常非常自豪。

And the fact that we're showing gross margin expansion is really a good demonstrator of that. And we could go out and take a lot more, so to speak, project-based work if we really wanted to, to accelerate revenue growth. But it would be most likely at the expense of gross margin expansion.

事實上，我們的毛利率擴張確實很好地證明了這一點。如果我們真的願意的話，我們可以出去進行更多基於項目的工作，以加速收入增長。但這很可能是以毛利率擴張為代價的。

And we have been beating and beating and beating the gross margin drop. And it's something that's very important for us if we're going to achieve this long-term target of 13%-plus by 2025.

我們一直在克服毛利率的下降。如果我們要在 2025 年實現 13% 以上的長期目標，這對我們來說非常重要。

Yes, that's helpful. And maybe the same question for Europe. You already mentioned customer attrition is lower. How would you characterize the European markets? And looks like the growth there is a little bit lower in general. Is it still sort of mid-single digits? And I think that's what you told us at the Investor Day last November.

是的，這很有幫助。對於歐洲來說也許也是同樣的問題。您已經提到客戶流失率較低。您如何描述歐洲市場？看起來總體增長速度有點低。它仍然是中個位數嗎？我想這就是您在去年 11 月的投資者日告訴我們的。

Yes, I think that's fair. And the one thing that I would just point you to and going all the way back to the Investor Day is that our international business is actually inspection service and monitoring makes up 60% of their revenue mix. And so just as a generalized statement, the resiliency of that business is really pretty high.

是的，我認為這是公平的。我想向您指出的一件事是，我們的國際業務實際上是檢查服務和監控，佔其收入組合的 60%。因此，正如一般性陳述一樣，該業務的彈性確實非常高。

And we have continued to see robust demand in the business. And we have seen minimal customer attrition, and the customer attrition we're seeing, to be quite honest with you, is positive for the business. And it's going to improve our margins and performance in the business. So we're confident in the business and where the business is going.

我們繼續看到該業務的強勁需求。我們發現客戶流失率極低，老實說，我們所看到的客戶流失對業務來說是積極的。這將提高我們的利潤和業務績效。因此，我們對業務以及業務的發展方向充滿信心。

Helpful. And then maybe one last one for Kevin. Just maybe on price versus cost. Kevin, I think you mentioned price and volume had about a 50-50 split in your revenue in Q2. Is that what you would expect moving forward? And with steel coming down maybe a little bit since the spring, does that help your margin at all in the second half of the year?

有幫助。然後也許是凱文的最後一件事。也許只是價格與成本的關係。 Kevin，我認為您提到第二季度的收入中價格和銷量的比例約為 50-50。這是您所期望的未來嗎？自春季以來，鋼材價格可能會略有下降，這對您下半年的利潤率有幫助嗎？

Andy, yes, thanks. So the 50-50 was on the safety side of the business. And I would say that's what we're seeing on a year-to-date basis and sort of our baseline expectation as we move through the back half of the year.

安迪，是的，謝謝。因此，50-50 是出於業務安全方面的考慮。我想說，這就是我們今年迄今所看到的情況，也是我們今年下半年的基本預期。

The material costs, we look at it a little bit inflation, not necessarily year-on-year, but versus where costs were when we started proposing our business. And the work we worked on in the second quarter was largely work that we were -- let's just talk on safety side of the business, was work we were proposing sort of late Q4 last year. And versus Q4, we have seen a runup in material costs in both steel and hot rolled coil.

材料成本，我們會考慮一點通貨膨脹，不一定是同比，而是與我們開始提出業務時的成本相比。我們在第二季度所做的工作主要是我們所做的工作——讓我們談談業務的安全方面，是我們去年第四季度末提出的工作。與第四季度相比，我們看到鋼材和熱軋卷材的材料成本都有所上升。

We -- so that creates a bit of a headwind as we work on that. Similarly, as those come down, and it looks like they're going to continue to come down in Q3 and the back half of the year, we should see that margin pickup that we lost on the runup in the first half.

我們——所以這在我們努力的過程中造成了一些阻力。同樣，隨著這些下降，而且看起來它們將在第三季度和今年下半年繼續下降，我們應該看到我們在上半年上升時失去的利潤率回升。

Appreciate all the color.

欣賞所有的顏色。

Andy, it's Jim. I just want to chime in. Martin and I were in Minneapolis earlier this week, meeting with both the international team and the domestic team. And everybody went through their growth plans to get to the 13%-plus EBITDA margin.

安迪，是吉姆。我只是想插話一下。本週早些時候，馬丁和我在明尼阿波利斯，與國際隊和國內隊會面。每個人都制定了增長計劃，以實現 13% 以上的 EBITDA 利潤率。

But you said earlier in your question you have lower growth in the international business. I just want to level set people who may be new that remember, most of our international business was acquired by Carrier. And historically, that had negative growth over the last 10 years or so.

但您早些時候在問題中說過，國際業務的增長較低。我只是想讓新人記住，我們的大部分國際業務都被開利收購了。從歷史上看，過去十年左右的時間裡出現了負增長。

And so the growth that we're seeing is well within our strategic plan and in line with making sure that we're spending behind the right initiatives. But we couldn't be more pleased with the performance of the international side of the business. It's measured and balanced and thoughtful growth as compared to its historical performance.

因此，我們所看到的增長完全符合我們的戰略計劃，並符合確保我們在正確的舉措上進行支出。但我們對國際業務的表現感到非常滿意。與歷史表現相比，它的增長是經過衡量的、平衡的和深思熟慮的。

Your next question comes from Chris Snyder of UBS.

你的下一個問題來自瑞銀集團的克里斯·斯奈德。

So organic growth in the first half of the year is kind of hanging around this low double-digit level. And it feels like, ultimately, the drivers of the business are regulation and also share gains, which feel long-lasting and really not macro-dependent. So with that, what are the drivers or the headwinds for just the normalization that's going to push the organic growth from the low doubles to the kind of the more mid-single-digit normalized levels? Is it the project selection that you guys have been talking about?

因此，今年上半年的有機增長有點徘徊在這個較低的兩位數水平上。感覺最終，業務的驅動力是監管和分享收益，這感覺是持久的，而且實際上並不依賴於宏觀。那麼，正常化的驅動因素或阻力是什麼，將有機增長從低倍數推至中等個位數正常化水平呢？是不是你們說的項目選擇？

100%. And we've been very purposeful in the installation work in our HVAC business and trying to make sure that we're selecting the right opportunities to pursue as well as in our Specialty Services segment just as a whole. And as I mentioned earlier, I'm really proud of our team for the discipline that they're showing and making sure that we're pursuing the right opportunities. And I think it's making a difference.

100%。我們在暖通空調業務的安裝工作中一直非常有目的，並努力確保我們選擇正確的機會來追求以及我們的整個專業服務領域。正如我之前提到的，我對我們的團隊感到非常自豪，因為他們表現出紀律性，並確保我們追求正確的機會。我認為這正在發揮作用。

And then for my follow-up, I wanted to maybe ask about the 2 -- or the bolt-ons that the company talked to in the preannounced last month. I guess what kind of surprised us was that you guys said these transactions are immediately accretive to EBITDA margins despite obviously being kind of smaller businesses. Can you just maybe talk a little bit about that? And is that what we should expect on all bolt-ons? Or is there something unique about these that they're coming on at an EBITDA margin premium?

然後，對於我的後續行動，我可能想問一下有關 2 的信息，或者該公司在上個月預先宣布的消息中談到的附加產品。我想讓我們感到驚訝的是，你們說這些交易會立即增加 EBITDA 利潤，儘管這些交易顯然是規模較小的企業。你能談談這個嗎？這就是我們對所有螺栓的期望嗎？或者這些產品有什麼獨特之處，使得它們的 EBITDA 利潤率溢價嗎？

Well, I mean, these -- the bolt-ons that we recently executed when we talked about them being immediately accretive, their performance is at an EBITDA margin that's currently higher than fleet average at APi. And so you make the assumption that they're going to continue to form where they're at.

嗯，我的意思是，這些——我們最近執行的補充，當我們談到它們會立即增值時，它們的表現是 EBITDA 利潤率，目前高於 APi 的機隊平均水平。所以你假設他們將繼續在他們現在的位置上形成。

We're going to start to integrate those businesses very quickly and hopefully continue to improve their margin performance, which is really a big part of our model. So from day 1, those businesses will be accretive, making that assumption.

我們將開始非常快速地整合這些業務，並希望繼續提高他們的利潤表現，這確實是我們模型的重要組成部分。因此，從第一天開始，這些業務就會不斷增長，做出這樣的假設。

I would say that in general, I mean, that's our focus. We want to -- as we continue to acquire companies, we want to acquire companies that are accretive, right? Does that mean that we wouldn't acquire, say, a business that's in a geographic area that maybe the performance of that business is only 11% or 12% on a pre-synergy basis? If it was in the right geographic area, it met all of our criteria from culture, values and fit, and we can see a clear path to how we can get that business performing at, say, 15% EBITDA margin, we would certainly look at doing something like that.

我想說的是，總的來說，這是我們的重點。我們希望——當我們繼續收購公司時，我們希望收購具有增值性的公司，對嗎？這是否意味著我們不會收購某個地理區域內的企業，而該企業的業績在協同前的基礎上可能僅為 11% 或 12%？如果它位於正確的地理區域，它符合我們從文化、價值觀和契合度方面的所有標準，並且我們可以看到一條清晰的道路，讓我們能夠以15% 的EBITDA 利潤率實現業務績效，我們當然會考慮在做類似的事情時。

So a lot of these businesses, to be totally honest, with you, Chris, when we acquire them, they might tell you that their inspection service and monitoring is 35%, 40% of their total revenues. And usually when you start digging in you find out that it's less than that.

因此，老實說，克里斯，很多這樣的企業，當我們收購它們時，他們可能會告訴你，他們的檢查服務和監控佔其總收入的 35%、40%。通常當你開始深入研究時，你會發現它比這個要少。

We have a very clear road map and playbook on how we can take those businesses, get that inspection-first mindset instilled in the business and get it moving forward very quickly, get it on the right glide path. And so geographic, looking at the map and looking at geographic expansion that's complementary to our existing footprint, it's something that's important for us as we -- and especially important for us as we continue to try to broaden our base of national accounts. So -- but we're not going to -- we're not out actively looking for poor performing businesses or anything like that by any stretch of the imagination.

我們有一個非常清晰的路線圖和行動手冊，說明如何開展這些業務，將檢查第一的心態灌輸到業務中，並使其快速向前發展，使其走上正確的滑行道路。因此，地理方面，看看地圖，看看與我們現有足跡相補充的地理擴張，這對我們來說很重要，尤其是在我們繼續努力擴大國民賬戶基礎時。所以——但我們不會——我們不會積極尋找表現不佳的企業或任何類似的事情。

(Operator Instructions) Your next question comes from Andy Wittmann of Baird.

（操作員說明）您的下一個問題來自 Baird 的 Andy Wittmann。

Russ, so I guess my question is, just given the relative growth rates between your inspection, service and monitoring business that's the flywheel that you're really focused on growing so well and the project business where you're being so selective, are you having to move personnel to the inspection side of the business from your project side of the business, given the tight labor market? Can you just talk about how you're staffing this growth on that inspection side?

拉斯，所以我想我的問題是，考慮到您的檢查、服務和監控業務之間的相對增長率，您真正專注於發展得如此順利的飛輪，以及您如此挑剔的項目業務，是嗎？鑑於勞動力市場緊張，是否必須將人員從業務的項目方轉移到業務的檢查方？您能否談談您如何在檢查方面為這一增長配備人員？

Yes. So that's really a separate workforce, Andy. It really is a separate workforce. And what we've done is we've continued to build out that inspection sales force. We've set up centers of excellence inside the Life Safety business to train, so to speak, I'll say, our new and future inspectors as we continue to recruit.

是的。所以這確實是一個獨立的勞動力，安迪。它確實是一個獨立的勞動力。我們所做的是繼續建立檢驗銷售隊伍。我們已經在生命安全業務內部設立了卓越中心，可以這麼說，在我們繼續招聘的同時，培訓我們的新的和未來的檢查員。

And as we build that inspection sales force, we need to build our inspector sales -- or inspector sales force that's going to actually execute the work. And we have to be able to train those men and women. We have other centers of excellence as well, like we have a design center of excellence where we do design overflow, and we train designers.

當我們建立檢驗銷售隊伍時，我們需要建立檢驗員銷售隊伍，或者說檢驗員銷售隊伍，以實際執行工作。我們必須能夠培訓這些男人和女人。我們還有其他卓越中心，比如我們有一個卓越設計中心，我們在那裡進行設計溢出，並培訓設計師。

We have -- one of our businesses is to develop accredited apprenticeship programs for fire alarm technicians so that we can make sure that we're not letting that skilled technician need become a bottleneck for us. But it's really a separate workforce.

我們的業務之一是為火災報警技術人員制定經過認證的學徒計劃，這樣我們就可以確保我們不會讓熟練技術人員的需求成為我們的瓶頸。但這實際上是一支獨立的勞動力隊伍。

And if you're really going to have a robust inspection, service and monitoring business, they need to be segregated. And in general, the people that are doing your installation work, they really want to do installation work, and most of them don't want to do 2 small jobs every day with different customers and moving around in a van. They just have different interests and -- but keeping them separate is very important.

如果您真的想要擁有強大的檢查、服務和監控業務，就需要將它們分開。一般來說，做安裝工作的人，他們真的很想做安裝工作，他們中的大多數人不想每天與不同的客戶做兩件小工作，並在一輛貨車中四處走動。他們只是有不同的興趣，但是將他們分開非常重要。

Okay. That makes sense. And then I guess for my follow-up, Kevin, for you. Could you just give us an update on the cost capture plans and their status? Maybe talk about how much cost do you expect to incur in the second half of the year, maybe the run rate of cost capture synergies that you exited the second quarter and how you're tracking for exiting this calendar year as you head into '24 on those cost captures.

好的。這就說得通了。然後我想我的後續行動，凱文，是為你。您能否向我們介紹一下成本捕獲計劃及其狀態的最新情況？也許可以談談您預計下半年會產生多少成本，也許是您退出第二季度的成本捕獲協同效應的運行率，以及當您進入 24 世紀時您如何跟踪退出本日曆年關於這些成本捕獲。

Sure. So from an expense standpoint, our prior guide of $55 million to $65 million in the year is still our expectation for full year 2023. As a reminder, that's on the back of $30 million that we had in 2022.

當然。因此，從支出角度來看，我們之前的 5500 萬至 6500 萬美元指導仍然是我們對 2023 年全年的預期。提醒一下，這是在 2022 年 3000 萬美元的基礎上實現的。

We've talked about the 2022 charge of $30 million should accrue to the P&L one-for-one basis for savings. We still expect that in the year to be between $20 million and $25 million that we expect to accrue from a savings standpoint from last year's charge.

我們已經討論過 2022 年 3000 萬美元的費用應計入損益表一對一的儲蓄基礎上。我們仍然預計，從去年費用節省的角度來看，今年我們預計將產生 2000 萬至 2500 萬美元之間的費用。

This year's charge will be back-half loaded, but we expect to see some savings there. And they'll probably be somewhere between $0 and $5 million, so approximately $5 million of additional savings from our 2023 activity and charge.

今年的費用將是後半負荷，但我們預計會看到一些節省。它們可能在 0 到 500 萬美元之間，因此我們 2023 年的活動和費用可額外節省大約 500 萬美元。

Your next question is from Steve Tusa of JPMorgan.

您的下一個問題來自摩根大通的史蒂夫·圖薩。

Congrats on the strong cash flow in the quarter.

祝賀本季度強勁的現金流。

Thank you.

謝謝。

The commercial exposure you guys have, I think it's like 19% of sales or something like that. How much of that is office? And then I'm looking at that telecom utility bucket. Is that like -- is that mostly telecom? Or is that -- I'm just trying to figure out what part of it is the actual like maybe power energy utilities bucket. It seems like you have a transmission piece of the pie as well. Just curious on those 2 parts of the pie chart.

你們擁有的商業曝光率，我認為大約是銷售額的 19% 或類似的數字。其中有多少是辦公室？然後我正在查看電信公用事業桶。是不是——主要是電信？或者是——我只是想弄清楚它的哪一部分是實際的，比如電力能源公用事業桶。看來你也有傳輸部分。只是對餅圖的這兩部分感到好奇。

So in the commercial bucket, I would say a very small amount of that is sort of the high rise that you're talking about. We estimate that it's inside of 5%. The remainder would be the end markets or the areas that you are referencing being telecom and some of those other areas.

因此，在商業領域，我想說其中很小一部分就是您所說的高層建築。我們估計在 5% 以內。其餘的將是終端市場或您提到的電信領域和其他一些領域。

Great. And then just a little guidance on the segment sales forecast in the second half, just organically how you expect those to trend? Are those pretty stable or accelerating or decelerating?

偉大的。然後對下半年的細分市場銷售預測提供一些指導，您對這些趨勢的有機預期如何？這些是相當穩定還是加速或減速？

Yes, no problem. We're not guiding to specific segment breakouts in the back half of the year. But what I'll tell you is sort of the specialty businesses, we've done a good job of managing growth as we planned, focusing on the right end markets and the right customers and driving gross margin expansion.

是沒有問題。我們不會指導今年下半年的特定細分市場突破。但我要告訴你的是，在專業業務方面，我們在按計劃管理增長方面做得很好，專注於正確的終端市場和正確的客戶，並推動毛利率擴張。

And obviously, we talked a lot about the safety businesses and the U.S. Life Safety business and the performance we saw there in the first half. I would say as you look at our back half, those are similar expectations. We're going to continue to moderate and manage growth from the Specialty Services side, and we're going to continue to capture organic growth and share gain on the safety side.

顯然，我們談論了很多關於安全業務和美國生命安全業務以及我們在上半年看到的表現。我想說，當你看看我們的後半場時，這些都是相似的期望。我們將繼續調節和管理專業服務方面的增長，我們將繼續在安全方面實現有機增長和份額增長。

And there are no further questions at this time. I'd be happy to return the call to our hosts for any concluding remarks.

目前沒有其他問題。我很樂意給我們的東道主回電話，讓我發表任何結論性意見。

Russ, it's Jim. Can I just jump in on one thing before you do your concluding remarks, please?

拉斯，是吉姆。在您發表結論性意見之前，我可以先插話一件事嗎？

Sure.

當然。

So there's been a lot of conversation on the call today about M&A. So I just want to clarify the return to focus on the tuck-in deals, we think that we can live well within our leverage targets while staying more focused on these smaller acquisitions, so much so that when we were in Minneapolis this week, we talked about ramping up the spending and likely doubling it as we move into 2024 and still doing thoughtful tuck-in M&A, considering larger ones as they come across our desk because we want to remain educated on what's out there in the world.

今天的電話會議上有很多關於併購的討論。因此，我只是想澄清一下，重點關注補充交易的回報，我們認為我們可以在槓桿目標範圍內很好地生活，同時更加關注這些較小的收購，以至於當我們本週在明尼阿波利斯時，我們談到了增加支出，並可能在進入2024 年時將其增加一倍，並且仍在進行深思熟慮的併購，在我們辦公桌上出現較大的併購時考慮它們，因為我們希望繼續了解世界上的情況。

But the real focus in the near term is on these tuck-in deals that Russ and the team have just done so well historically paying appropriate multiples for them. And as I said earlier, I believe we can ramp up our spending on that and still live well within our debt-to-EBITDA ratio goals.

但短期內真正的焦點是這些交易，拉斯和他的團隊在歷史上為這些交易支付了適當的倍數，做得非常好。正如我之前所說，我相信我們可以增加這方面的支出，並且仍然很好地實現我們的債務與 EBITDA 比率目標。

So with that, Russ, I'll turn it back over to you. Thanks.

那麼，拉斯，我會把它轉回給你。謝謝。

Thanks, Jim, for the color. In closing, I would like to thank all of our team members for their continued support and dedication to our business. We believe our people are the foundation on which everything else is built. Without them, we do not exist.

謝謝吉姆提供的顏色。最後，我要感謝我們所有團隊成員對我們業務的持續支持和奉獻。我們相信我們的員工是其他一切的基礎。沒有他們，我們就不存在。

I'd also like to thank our long-term shareholders as well as those that have recently joined us for their support. We appreciate your ownership of APi, and we look forward to updating you on our progress throughout the remainder of the year.

我還要感謝我們的長期股東以及最近加入我們的股東的支持。我們感謝您對 APi 的所有權，並期待在今年剩餘時間內向您通報我們的最新進展。

So thank you again for taking time to join the call. And to all of our APi teammates across the globe, please know that we're grateful for everything that you do to help us win in this environment. Thank you.

再次感謝您抽出時間參加此次通話。對於我們全球各地的所有 APi 隊友，我們非常感謝你們為幫助我們在這種環境下獲勝所做的一切。謝謝。

This does conclude today's conference. You may now disconnect your lines, and everyone, have a great day.

今天的會議到此結束。您現在可以斷開線路了，祝大家度過愉快的一天。