APi Group Corp (APG) 2021 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to APi Group's Fourth Quarter 2021 Financial Results Conference Call. (Operator Instructions)

女士們、先生們，早安！歡迎參加APi集團2021年第四季財務業績電話會議。 （操作員指示）

Please note, this call is being recorded. I will be standing by should you need any assistance.

請注意，本次通話正在錄音。如果您需要任何幫助，我會隨時待命。

I will now turn the call over to Olivia Walton, Vice President of Investor Relations at APi Group. Please go ahead.

現在我將把電話轉給APi集團投資者關係副總裁Olivia Walton。請您發言。

Thank you. Good morning, everyone, and thank you for joining our fourth quarter 2021 earnings conference call. Joining me on the call today are Russ Becker, our President and CEO; and 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。大家早安，感謝大家參加我們2021年第四季財報電話會議。今天與我一起參加電話會議的還有我們的總裁兼執行長Russ Becker，我們的執行副總裁兼財務長Kevin Krumm，以及我們的董事會聯席主席Martin Franklin爵士和Jim Lillie。

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.

在開始之前，我想提醒您，本公司獲利新聞稿和本次電話會議中的某些陳述屬於前瞻性陳述，這些陳述基於對公司未來業績、預期事件或趨勢以及其他非歷史事實的預期、意圖和預測。這些陳述並非對未來績效的保證，並且受已知和未知風險、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有重大差異。

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, March 1, and we have no obligation to update any forward-looking statement we may make.

在我們的新聞稿和提交給美國證券交易委員會 (SEC) 的文件中，我們詳細說明了可能導致未來業績與預期差異的重大風險。我們的聲明截至今日（3月1日），我們沒有義務更新任何前瞻性聲明。

As a reminder, we have posted a presentation detailing our fourth quarter financial performance on the Investor Relations page of our website.

提醒一下，我們已在我們網站的投資者關係頁面上發布了一份詳細介紹我們第四季度財務業績的簡報。

Our comments today will also include non-GAAP financial measures and other key operating metrics. The reconciliation of and other information regarding these items can be found in our press release and our presentation.

我們今天的評論還將涵蓋非公認會計準則財務指標和其他關鍵營運指標。這些項目的對帳及其他資訊可在我們的新聞稿和簡報中找到。

It is now my pleasure to turn the call over to Martin.

現在我很高興將電話轉給馬丁。

Thank you, Olivia.

謝謝你，奧莉維亞。

We're very pleased with APi's progress achieved in 2021 and even more excited about the opportunities that lie ahead for the business. The completion of the acquisition of the Chubb fire and security business on January 3, 2022, was an exciting milestone as we continue our evolution and growth as a public company. Chubb is a business with significant strategic value to APi and one with multiple levers for value creation.

我們對APi在2021年的進展感到非常滿意，並對公司未來的機會更加充滿期待。 2022年1月3日完成對丘博消防和安防業務的收購，是我們作為上市公司持續發展壯大過程中一個令人興奮的里程碑。丘博對APi具有重要的戰略價值，並擁有多種價值創造手段。

We view APi's and Chubb's strengths and skill sets as complementary. Just as our capabilities and scale will help drive growth at Chubb, by the same token the addition of Chubb enriches our overall portfolio. Our combined global reach as the world's leading life safety services provider is already unlocking incremental opportunities for us with multinational clients. We are thrilled to welcome all of the Chubb team members to the APi family as the business shifts from a noncore asset to a paramount strategic priority within APi.

我們認為APi和Chubb的優勢和技能是互補的。正如我們的能力和規模將有助於推動Chubb的成長一樣，Chubb的加入也豐富了我們的整體產品組合。作為全球領先的生命安全服務供應商，我們整合的全球影響力已為我們與跨國客戶開啟了更多機會。我們熱烈歡迎Chubb團隊的所有成員加入APi大家庭，因為APi的業務正從非核心資產轉變為APi的首要策略重點。

As the bar is being raised at the operating level, so too is the bench of senior management. Multiple hires have been made to incorporate our growing scale, and we feel very energized with the quality of the team moving forward. We have great confidence in the business and the direction we're heading and look forward to updating you on our progress in the coming months.

隨著營運層面的門檻不斷提高，高階管理層的陣容也不斷壯大。為了滿足我們日益增長的規模，我們進行了多項招聘，團隊素質的提升也讓我們倍感振奮。我們對公司業務和未來發展方向充滿信心，並期待在未來幾個月內與您分享我們的進展。

Before handing over the call to Russ, I'd like to acknowledge with a heavy heart the passing of Lord Paul Myners in January. Paul was an outstanding director for APi and someone who made the world a more interesting and better place. He will be greatly missed.

在將電話交給Russ之前，我想懷著沉痛的心情，宣布Paul Myners勳爵於一月份去世。 Paul是APi的傑出董事，他讓世界變得更加有趣和美好。我們會非常想念他的。

With that, Russ?

就這樣，拉斯？

Thank you, Martin, and good morning, everyone. Thank you for taking the time to join our call this morning. Before we provide you with a summary of our strong results for 2021, solid outlook for 2022 and an update on the acquisition of Chubb, I would like to start by thanking our team members who have remained focused on supporting our company and our customers. Their ongoing leadership efforts continue to demonstrate what I have known to be true since I was fortunate enough to be given the leadership role at APi over 20 years ago: our leaders are a competitive advantage and help drive shareholder value. The safety, health and well-being of all of our leaders remains our #1 priority. Like Martin, I would like to welcome all of the Chubb team members to the APi family.

謝謝馬丁，大家早安。感謝您抽出時間參加我們今天上午的電話會議。在我們向您介紹我們2021年的強勁業績、2022年的穩健前景以及收購丘博的最新進展之前，我首先要感謝我們團隊成員一直以來對公司和客戶的支持。他們持續的領導努力再次印證了自20多年前我有幸在APi擔任領導職務以來我所堅信的真理：我們的領導者是競爭優勢，並有助於提升股東價值。所有領導者的安全、健康和福祉始終是我們的首要任務。與馬丁一樣，我也歡迎所有丘博團隊成員加入APi大家庭。

As discussed at the investor conferences last week in Miami, 2021 was a watershed year in the development of APi. Despite the many macro headwinds, I am proud of our team and how we achieved our stated strategic goals amidst ongoing supply chain disruptions, inflationary pressures and COVID-19 impacts. These include the following highlights for the year ended December 31, 2021.

正如上週在邁阿密舉行的投資者會議上所討論的那樣，2021年是APi發展的分水嶺。儘管面臨許多宏觀阻力，但我為我們的團隊以及我們如何在持續的供應鏈中斷、通膨壓力和新冠疫情的影響下實現既定的戰略目標感到自豪。以下是截至2021年12月31日止年度的亮點。

First, net revenues, excluding Industrial Services, increased on an organic basis by 16.1%, exceeding our initial guidance of 7%, driven by strong demand in our core Safety and Specialty Services segments.

首先，受核心安全和專業服務部門強勁需求的推動，不包括工業服務的淨收入有機成長了 16.1%，超過了我們最初預期的 7%。

Second, continued success in our ongoing goal of growing the acyclical recurring service revenue aspects of our portfolio, which we believe helps to build a more protective moat around the business. Service represented approximately 43% of total net revenues in our life safety businesses, up from approximately 41% of total net revenues in 2020.

第二，我們持續成功實現了成長產品組合中非週期性經常性服務收入的目標，我們相信這有助於為業務建立更具保護性的護城河。服務收入約占我們生命安全業務總淨收入的43%，高於2020年的約41%。

Third, within our Safety Services segment, we achieved our goal of growing inspection revenue 10%-plus. We continue to drive our go-to-market strategy of selling inspection work first, which we believe will lead to further service revenue growth and ultimately drive margin expansion.

第三，在安全服務部門，我們達成了檢驗業務收入成長10%以上的目標。我們將繼續推動以銷售檢驗業務為先的市場化策略，我們相信這將進一步推動服務收入成長，並最終推動利潤率提升。

Fourth, disciplined project and customer selection. We ended the year with a contract loss rate of less than 0.5%. This exceeds our goal of 0.7% or less. We will continue to resist lower-margin, higher-risk activity and work to drive this towards 0. It is critical for us to maintain our focus on thoughtful and profitable growth rather than growing for the sake of growth and risking profitability as we strive to deliver on our margin expansion goals.

第四，嚴謹的專案和客戶篩選。我們截至年底的合約損失率低於0.5%，超過了我們設定的0.7%或更低的目標。我們將繼續抵制低利潤、高風險的業務，並努力將合約損失率降至零。在我們努力實現利潤率成長目標的同時，至關重要的是，我們要專注於深思熟慮且獲利的成長，而不是為了成長而成長，冒著獲利風險。

The most exciting development during the year was the signing of the definitive agreement to acquire Chubb on July 26, 2021. With the closing of the transaction, we began 2022 as the world's leading life safety services provider. I would like to spend a few minutes providing you with an update on our progress over the past couple of months.

本年度最令人興奮的進展是於2021年7月26日簽署了收購安達的最終協議。隨著交易的完成，我們將在2022年以全球領先的生命安全服務提供者的身份開啟新的篇章。我想花幾分鐘時間，向大家介紹我們過去幾個月的最新進展。

As many of you have heard me say previously, Chubb is a center-of-the-fairway transaction for us. We have built a branch-based business model similar to Chubb over the past 20 years since I've been at APi. Our powered by APi structure provides us with the ability to leverage our scale while also being able to be nimble and opportunistic at the local level with minimal bureaucracy and overhead burden. We are excited to add Chubb to our family of market-leading service providers run by entrepreneurs with the backing of a large organization.

正如你們許多人之前聽我說過的那樣，安達保險對我們來說是一項至關重要的交易。自從我加入APi以來的20年裡，我們建立了一個類似安達的基於分支機構的業務模式。我們由APi提供支援的架構使我們能夠充分利用自身的規模優勢，同時在地方層面靈活應對，抓住機遇，最大限度地減少官僚主義和管理負擔。我們很高興安達保險加入我們由企業家經營、並由大型機構支持的市場領先服務提供者大家庭。

Another parallel between the Chubb business and APi is that we have life safety businesses that deliver high-teens adjusted EBITDA margins, which means they also have businesses that are performing below the fleet average. We believe there is significant opportunity to invest in regions with higher margins and provide increased support to the Chubb team in improving the businesses that are below fleet average to ultimately realize the financial profile in line with APi's Safety Services segment. We fully intend to leverage this approach to drive the growth of the newest member of the APi family.

安達業務與APi的另一個相似之處在於，我們的生命安全業務的調整後EBITDA利潤率高達15%以上，這意味著它們也有一些業務的業績低於車隊平均水平。我們相信，在利潤率更高的地區進行投資，並為安達團隊提供更多支持，以改善那些低於車隊平均水平的業務，最終實現與APi安全服務部門相符的財務狀況，這是一個巨大的機會。我們計劃充分利用這種方式來推動APi家族新成員的成長。

We have now begun a 3-year journey to accelerate organic revenue growth, leverage our scale and drive margin expansion across our platform while focusing on free cash flow conversion and swiftly deleveraging and integrating the Chubb team and portfolio into APi. The views we had shared regarding the Chubb business on previous conference calls were based largely on the due diligence we performed as part of the transaction. I'm delighted to say that after nearly 2 months of ownership, we see the opportunities to be at least as large, if not greater, than we had anticipated during our due diligence. Kevin will touch on synergies briefly in his remarks.

我們現已開啟為期三年的旅程，旨在加速有機收入成長，利用我們的規模優勢，並推動整個平台的利潤率擴張，同時專注於自由現金流轉換，快速去槓桿，並將安達團隊和投資組合整合到APi。我們在先前的電話會議上就安達業務所表達的觀點，主要基於我們在交易過程中進行的盡職調查。我很高興地說，在收購近兩個月後，我們看到的機會至少與我們在盡職調查期間的預期一樣大，甚至更大。 Kevin將在他的發言中簡要地談及協同效應。

On future conference calls, we intend to highlight in more detail the areas we have identified that will drive synergies and margin improvement for the future as we work towards achieving our 2025 goals.

在未來的電話會議上，我們打算更詳細地強調我們已經確定的將在努力實現 2025 年目標的過程中推動未來協同效應和利潤率提高的領域。

This is likely the last conference call where I will reference Chubb. Chubb is an important brand within APi. For far too long, in my opinion, under prior ownership, Chubb has been an orphaned asset, as we have called it. That ended on January 3. As we have started to integrate the business, we are combining teams and resources, servicing customers, developing action plans and moving forward as one company and team with a unified set of goals and direction.

這可能是我最後一次在電話會議上提到安達。安達是APi內部的重要品牌。在我看來，在先前的所有權下，安達長期以來一直是我們所謂的「孤兒資產」。這種情況在1月3日結束了。隨著我們開始整合業務，我們正在整合團隊和資源，為客戶提供服務，制定行動計劃，並作為一個公司和團隊，在統一的目標和方向上向前邁進。

As many of you know, and as we strongly believe at APi, our success is dependent upon -- on people, and one of the intangibles in any transaction is the people. We have a team of people on the ground 24/7. We have built out the depth of our bench over the last several months to ensure that we are well positioned to integrate and manage our ever-expanding global footprint. We have added several leaders with significant international and integration experience across all disciplines of our organization.

正如你們許多人所知，也正如我們在APi堅信的那樣，我們的成功取決於人，而人是任何交易中無形資產之一。我們擁有一支全天候待命的團隊。在過去的幾個月裡，我們不斷增強團隊實力，以確保我們能夠更好地整合和管理我們不斷擴張的全球業務。我們吸收了多位在公司各領域擁有豐富國際化和整合經驗的領導者。

Since the closing of the Chubb transaction, Kevin, myself and a number of our teammates have had the pleasure of traveling to numerous facilities to conduct operating reviews. Across the board, we have seen that there is genuine belief and desire that for the first time in many years, Chubb has found a stable home where the employees and their businesses can flourish and achieve their potential. As part of the APi family, Chubb will benefit from APi's culture of organizational sharing of knowledge and best practices and collaboration across businesses, which ultimately drives cross-selling opportunities.

自從安達交易完成以來，凱文、我本人以及我們的多位團隊成員榮幸地前往眾多設施進行營運評估。我們全體員工都真心實意地相信並渴望安達多年來首次找到了一個穩定的家園，讓員工及其業務蓬勃發展，充分發揮各自的潛力。作為APi大家庭的一員，安達將受益於APi的文化，即共享知識和最佳實踐，以及跨業務協作，最終推動交叉銷售機會。

I continue to be in energized by the host of opportunities in front of us. As we look ahead to 2022, our record backlog continues to build and provides us with a solid foundation for organic growth. Underlying demand in our key end markets, such as data centers, fulfillment and distribution centers, health care and high tech remains robust.

眼前的眾多機會讓我持續充滿活力。展望2022年，我們創紀錄的訂單量持續成長，為我們的有機成長奠定了堅實的基礎。資料中心、訂單履行和配送中心、醫療保健和高科技等主要終端市場的潛在需求仍然強勁。

As many of you have heard us say previously, while our business is not immune to macro marketplace disruptions related to the supply chain disruptions and inflationary cost pressures, we believe we have more tools to mitigate these pressures than our peers. The acquisition of Chubb has enhanced our overall competitive position and our protective moat around the business.

正如你們許多人之前聽到我們所說，雖然我們的業務無法免受與供應鏈中斷和通膨成本壓力相關的宏觀市場波動的影響，但我們相信，我們比同行擁有更多工具來緩解這些壓力。收購安達保險增強了我們的整體競爭地位，並增強了我們業務的護城河。

Our average project size in our largest segment, Safety Services, is now approximately $5,000, and the average duration of our projects is very short, which we believe will allow us to reasonably control inflationary variables and reasonably manage our supply chain. We believe these are competitive advantages as they allow us to stay focused on real-time pricing and operational efficiency to ensure true costs are reflected in the services we provide.

我們最大的業務板塊——安全服務——目前的平均專案規模約為5,000美元，而且專案平均持續時間很短，我們相信這將使我們能夠合理控制通膨變數並合理管理我們的供應鏈。我們相信這些都是競爭優勢，因為它們使我們能夠專注於即時定價和營運效率，確保我們提供的服務反映真實的成本。

In summary, I am pleased with our progress in 2021 and confident that the momentum will continue into the future. We intend to maintain our relentless focus on growing recurring service revenue, disciplined project and customer selection, pricing opportunities, leveraging our strength, driving operational excellence and realizing synergies from the acquisition of Chubb.

總而言之，我對我們在2021年的進展感到滿意，並相信這種勢頭將在未來持續下去。我們將繼續專注於增加經常性服務收入、嚴謹的項目和客戶選擇、定價機會、發揮我們的優勢、推動卓越運營，並實現收購丘博帶來的協同效應。

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

現在我想把電話交給凱文，讓他更詳細地討論我們的財務表現和前景。凱文？

Thanks, Russ, and good morning, everyone. I'll begin my remarks by reviewing our consolidated results and segment-level operating performance before turning to our outlook.

謝謝，Russ，大家早安。首先，我將回顧我們的合併績效和各部門的營運表現，然後再談我們的展望。

Net revenues for the 3 months ended December 31, 2020, increased on an organic basis by 27.4% compared to the prior year period when excluding Industrial Services. For the year ended December 31, 2021, net revenues increased on an organic basis by 16.1% compared to the prior year period. This, too, is excluding Industrial Services.

截至2020年12月31日的三個月，扣除工業服務後，淨收入與去年同期相比有機成長27.4%。截至2021年12月31日的年度，淨收入與去年同期相比有機成長16.1%。這同樣不包括工業服務。

Adjusted gross margin for the 3 months ended December 31, 2021, was 24.6%, representing a 42 basis point decline compared to the prior year, driven by supply chain disruptions and inflation, which caused downward pressure on our margins. This was partially offset by outsized growth in our higher-margin Safety Services segment and an increase in inspection and service revenue.

截至2021年12月31日的三個月，調整後毛利率為24.6%，較前一年下降42個基點。這主要受供應鏈中斷和通貨膨脹的影響，導致我們的利潤率面臨下行壓力。利潤率較高的安全服務部門的超額成長以及檢驗和服務收入的成長，部分抵銷了這一影響。

For the year ended December 31, 2021, adjusted gross margin was 24%, representing a 30 basis point increase compared to the prior year due to an improved mix of inspection and service revenue and outsized growth in our higher-margin Safety Services segment, which represented approximately 53% of adjusted net revenues in 2021 compared to approximately 47% in 2020. This was partially offset by supply chain disruptions and inflations, which have caused downward pressure on our margins.

截至 2021 年 12 月 31 日止年度，調整後毛利率為 24%，較上年增加 30 個基點，原因是檢驗和服務收入結構改善，且利潤率更高的安全服務部門增長迅猛，該部門 2021 年約佔調整後淨收入的 53%，而 2020 年約為 47%。供應鏈中斷和通貨膨脹給我們的利潤率帶來了下行壓力，部分抵消了這種影響。

Adjusted EBITDA margin for the 3 months ended December 31, 2021, was 10.3% compared to 11.8% in the prior year period driven by continuing supply chain disruptions and inflation, which caused downward pressure on our margins, as well as lower contribution from joint ventures in our Specialty Services segment. This was partially offset by outsized growth in our higher-margin Safety Services segment and an increase in inspection and service revenue.

截至2021年12月31日的三個月，調整後EBITDA利潤率為10.3%，而去年同期為11.8%。持續的供應鏈中斷和通貨膨脹導致利潤率承壓，且專業服務部門合資企業的貢獻減少。利潤率較高的安全服務部門的超額成長以及檢驗和服務收入的成長部分抵消了這一影響。

For the year ended December 31, 2021, adjusted EBITDA margin was 10.3%, representing a 57 basis point decline compared to the prior year due to the items I mentioned for the fourth quarter.

截至 2021 年 12 月 31 日的年度，調整後的 EBITDA 利潤率為 10.3%，由於我提到的第四季度項目，與前一年相比下降了 57 個基點。

As many of you know, one of API's historical strengths is its strong free cash flow, which creates opportunities to drive organic and acquisition growth as well as flexibility to make the best capital allocation decisions, whether debt repayment, acquisitions or otherwise. As we have noted on prior calls, our substantial growth in organic net revenues throughout 2021 increased working capital investment as we ended Q4 2020 with suppressed working capital levels primarily due to a reduction in volume during 2020 driven by the pandemic.

眾所周知，API 一直以來的優勢之一是其強勁的自由現金流，這不僅創造了推動有機成長和收購成長的機會，也為公司提供了靈活性，使其能夠做出最佳的資本配置決策，無論是債務償還、收購還是其他方面。正如我們在先前的電話會議上所指出的，我們 2021 年全年有機淨收入的大幅增長增加了營運資本投資，而 2020 年第四季末，我們的營運資本水準受到抑制，這主要是由於疫情導致 2020 年業務量下降。

For the year ended December 31, 2021, adjusted free cash flow was $223 million, representing a $220 million decrease compared to the prior year of $443 million. And our adjusted free cash flow conversion rate was approximately 57% -- or 55%, which was impacted by higher-than-anticipated demand in the fourth quarter in our core Safety and Specialty Services segment.

截至2021年12月31日止年度，調整後自由現金流為2.23億美元，較上年的4.43億美元減少2.2億美元。我們的調整後自由現金流轉換率約為57%，或55%，這受到我們核心安全與專業服務部門第四季高於預期的需求的影響。

I will now discuss our results in more detail for each of the three segments beginning with Safety Services.

我現在將從安全服務開始，更詳細地討論三個部分中每個部分的結果。

Safety Services net revenues for the 3 months ended December 31, 2021, increased on an organic basis by 23% primarily due to continued growth in inspection and service revenue across the majority of our markets. For the year-end December 31, 2021, net revenues increased on an organic basis by 17.6% due to continued growth in inspection and service revenue across the majority of our markets and general market recovery compared to the prior year period, which was negatively impacted by the pandemic.

截至2021年12月31日的三個月，安全服務淨收入有機成長23%，這主要得益於我們大部分市場的檢驗和服務收入持續成長。截至2021年12月31日的年度，淨收入有機增長17.6%，這主要得益於我們大部分市場的檢驗和服務收入持續增長，且整體市場較去年同期有所復甦，而去年同期受疫情負面影響。

Adjusted gross margin for the 3 months ended December 31, 2021, was 30.9%, representing a 180 basis point decline compared to the prior year driven by supply chain disruptions, which caused a decline in productivity. This was partially offset by an improved mix of inspection and service revenue for our life safety businesses.

截至2021年12月31日的三個月，調整後毛利率為30.9%，較前一年下降180個基點，原因是供應鏈中斷導致生產力下降。生命安全業務的檢驗和服務收入結構改善部分抵消了這種影響。

For the year ended December 31, 2021, adjusted gross margin was 31.5% compared to prior year adjusted gross margin of 31.9%, driven primarily by the factors mentioned as drivers for the fourth quarter.

截至 2021 年 12 月 31 日止年度，調整後毛利率為 31.5%，而去年同期調整後毛利率為 31.9%，這主要受第四季度所述驅動因素的影響。

Adjusted EBITDA margin for the 3 months ended December 31, 2021, was 13.5%, representing a 12 basis point increase compared to the prior year due to the increase in inspection and service revenue, which was partially offset by certain supply chain disruptions.

截至 2021 年 12 月 31 日的三個月，調整後 EBITDA 利潤率為 13.5%，較前一年增加 12 個基點，原因是檢驗和服務收入增加，但部分被某些供應鏈中斷所抵銷。

For the year ended December 31, 2021, adjusted EBITDA margin was 14%, representing a 32 basis point increase compared to the prior year due to an improved mix of inspection and service revenue. This was partially offset by the return of largely temporary cost containment efforts implemented to counteract the negative impact of the pandemic in 2020.

截至2021年12月31日止年度，調整後EBITDA利潤率為14%，較上年增長32個基點，這得益於檢驗和服務收入結構改善。 2020年，為抵消疫情的負面影響而實施的、主要為臨時性的成本控制措施的恢復，部分抵消了這一增長。

I will now discuss our results in more detail for Specialty Services segment.

我現在將更詳細地討論我們專業服務部門的表現。

Specialty Services net revenues for the 3 months ended December 31, 2021, increased on an organic basis by 36.6% primarily due to increased demand and timing for our fabrication and specialty contracting services. For the year ended December 31, 2021, net revenues increased on an organic basis by 18% due primarily to the factors mentioned as drivers for the fourth quarter.

截至2021年12月31日的三個月，專業服務淨收入有機成長36.6%，主要得益於我們製造和專業承包服務的需求和時間的增加。截至2021年12月31日的年度，淨收入有機成長18%，主要得益於上述第四季的驅動因素。

Adjusted gross margin for the 3 months ended December 31, 2021, was 18.1%, representing a 47 basis point increase compared to the prior year due to an increase in service revenue and improved productivity. This was partially offset by supply chain disruptions and inflation, which caused downward pressure on margins.

截至2021年12月31日的三個月，調整後毛利率為18.1%，較上年同期成長47個基點，這主要得益於服務收入的成長和生產效率的提升。供應鏈中斷和通貨膨脹導致利潤率下降，部分抵消了這一增長。

For the year ended December 31, 2021, adjusted gross margin was 16.2%, consistent with prior year due to an increase in service revenue, disciplined project and customer selection and improved productivity, which was partially offset by supply chain disruptions and inflation, which caused pressure on margins.

截至 2021 年 12 月 31 日止年度，調整後毛利率為 16.2%，與上年持平，原因是服務收入增加、項目和客戶選擇更加規範以及生產率提高，但供應鏈中斷和通貨膨脹對利潤率造成壓力，部分抵消了這一影響。

Adjusted EBITDA margin for the 3 months ended December 31, 2021, was 12.5%, consistent with prior year due to the items I noted for gross margin performance, along with lower contributions from joint ventures compared to the prior year period.

截至 2021 年 12 月 31 日的 3 個月的調整後 EBITDA 利潤率為 12.5%，與上年持平，原因是我注意到的毛利率表現項目，以及合資企業的貢獻與上年同期相比有所下降。

For the year ended December 31, 2021, adjusted EBITDA margin was 11%, representing a 100 basis point decline compared to the prior year due to supply chain disruptions and inflation, which caused downward pressure on margins, the return of largely temporary cost containment efforts implemented to counteract the negative impact of the pandemic in 2020 and lower contribution from joint ventures compared with the prior year. These factors were partially offset by an increase in service revenue, disciplined project and customer selection and improved productivity.

截至2021年12月31日止年度，調整後EBITDA利潤率下降，2020年為抵消疫情負面影響而實施的、主要為臨時性的成本控制措施得以恢復，以及合資企業貢獻較上年有所下降。服務收入的成長、更嚴格的項目和客戶篩選以及生產效率的提高部分抵消了上述因素的影響。

I'll now discuss our results in more detail for our Industrial Services segment.

我現在將更詳細地討論我們的工業服務部門的表現。

Industrial Services net revenues for the 3 months and full year ended December 31, 2021, declined on an organic basis by 6.9% and 41.7%, respectively, showing some recovery towards the end of the year. The decline was driven by our continued focus on disciplined project and customer selection, decisions by our customers to delay and/or suspend certain projects and difficult industry conditions.

截至2021年12月31日的三個月及全年，工業服務淨收入分別有機下降6.9%及41.7%，但在年底有所回升。下降的原因是，我們持續注重嚴謹的項目和客戶篩選，客戶決定推遲和/或暫停某些項目，以及艱難的行業環境。

Adjusted gross margin and adjusted EBITDA margin for the 3 months ended December 31, 2021, was 13.6% and 7.4%, respectively, compared to 14.9% and 12.6%, respectively, in the prior year period. The decline was driven by unabsorbed costs for leases and equipment due to the lower volumes. This was partially offset by an improved mix of service revenue.

截至2021年12月31日的三個月，調整後毛利率和調整後EBITDA利潤率分別為13.6%和7.4%，而去年同期分別為14.9%和12.6%。毛利率下降的主要原因是銷量下降導致租賃和設備未吸收成本增加。服務收入結構改善部分抵消了這項影響。

For the year ended December 31, 2021, adjusted gross margin and adjusted EBITDA margin was 7.9% and 4%, respectively, compared to 16.3% and 13.6%, respectively, in the prior year period. The decline was primarily due to unabsorbed costs for leases and equipment due to the lower volumes. This was partially offset by an improved mix of service revenue, disciplined project and customer selection and certain cost reduction actions taken in the segment.

截至2021年12月31日止年度，調整後毛利率及調整後EBITDA利潤率分別為7.9%及4%，而去年同期分別為16.3%及13.6%。毛利率下降主要由於業務量下降導致租賃和設備成本未吸收。服務收入組合的改善、嚴謹的項目和客戶選擇以及部門採取的某些成本削減措施部分抵消了上述影響。

Before I review our 2022 guidance in more detail, I would like to note that this will be the last call -- this will be the last time that we discuss results for the 3 segments as we have realigned our management reporting structure following the Chubb acquisition. Effective January 1, 2022, the historical Industrial Services and Specialty Services segments will be reported as one segment, Specialty Services. And the historical Chubb business will be reported within Safety Services. As a result, we will present financial information for two segments moving forward. The segments will be Safety Services and Specialty Services.

在更詳細地回顧我們2022年的業績指引之前，我想指出，這將是最後一次——這將是我們最後一次討論這三個部門的業績，因為我們在收購Chubb之後重新調整了管理報告結構。自2022年1月1日起，歷史上的工業服務和專業服務部門將合併為一個部門－專業服務。而歷史上的Chubb業務將合併到安全服務部門。因此，我們將在未來提供兩個部門的財務資訊。這兩個部門將是安全服務和專業服務。

I will now discuss our outlook for 2022.

現在我將討論我們對 2022 年的展望。

We began 2022 focused on delivering our midterm plan of continued healthy top line growth in line with our average historical organic growth trend of 6% to 7% as we continue to focus on driving our adjusted EBITDA margin to 13% by 2025. As stated in our February 23 press release, we believe that net revenues for 2022 will range between $6.3 billion to $6.5 billion driven by our relentless focus on growing recurring service revenue. We expect Q1 to be $1.375 million to $1.43 million (sic) [$1.375 billion to $1.43 billion], Q2 to be $1.575 million to $1.625 million [$1.575 billion to $1.625 billion] and the second half to be $3.35 million to $3.445 million (sic) [$3.35 billion to $3.445 billion]

2022年伊始，我們專注於實現中期計劃，即持續保持健康的營收成長，這與公司6%至7%的歷史平均有機成長趨勢保持一致，同時我們將繼續致力於到2025年將調整後的EBITDA利潤率提升至13%。正如我們2月23日的新聞稿中所述，我們相信，由於我們持續關注不斷增長的經常性服務收入，2022年的淨收入將在63億美元至65億美元之間。我們預計第一季淨收入將在137.5萬美元至143萬美元之間（原文如此），[13.75億美元至14.3億美元]，第二季淨收入將在157.5萬美元至162.5萬美元之間（原文如此），[15.75億美元至16.25億美元]，下半年淨收入將在335萬美元至344.5萬美元之間（原文如此），[33.5億美元至34.45億美元]。

In line with our historical performance for 2022, we expect growth in net revenues on an organic basis at constant currencies will be 6% to 7%.

與我們 2022 年的歷史業績一致，我們預計以固定匯率計算的有機淨收入成長率將達到 6% 至 7%。

For 2022, we expect to deliver between $650 million to $700 million of adjusted EBITDA. Where we end within this range will largely be dependent on the speed with which we finalize and implement certain integration activities across our platform, the impact of further supply chain disruptions and inflationary pressures, our revenue growth and exchange rate movements during the year.

我們預計2022年調整後EBITDA將在6.5億至7億美元之間。最終能否達到這一區間，很大程度上取決於我們完成並實施平台整合活動的速度、進一步的供應鏈中斷和通膨壓力的影響、我們的收入成長以及年內匯率走勢。

As we've spent more time with the Chubb business post close, the saving opportunities are becoming more tangible, and we believe we have line of sight to delivering the $20 million of annualized opportunities we identified during our original diligence process. There's a lot of work left to do if we are to execute successfully on all these opportunities.

隨著我們在 Chubb 業務結束後投入的時間越來越長，節省成本的機會也越來越明顯，我們相信，我們有望實現最初盡職調查過程中確定的 2000 萬美元年化收益。如果我們要成功把握所有這些機會，還有很多工作要做。

While we expect the acquisition to be immediately accretive in 2022, excluding the restructuring and onetime charges, we anticipate that most of the projected operating synergies will take place 18 -- will take 18 to 36 months to realize.

雖然我們預計此次收購將在 2022 年立即產生增值效應（不包括重組和一次性費用），但我們預計大部分預期的營運綜效將在 18 至 36 個月內實現。

We expect Q1 adjusted EBITDA to be $120 million to $130 million, Q2 to be $165 million to $185 million and the second half to be $365 million to $385 million. Depending on how interest rates move throughout the year, we anticipate interest expense for 2022 to be approximately $120 million, we expect depreciation expense to be approximately $85 million and capital expenditures to be approximately $90 million.

我們預期第一季調整後EBITDA為1.2億至1.3億美元，第二季調整後EBITDA為1.65億至1.85億美元，下半年調整後EBITDA為3.65億至3.85億美元。根據全年利率走勢，我們預計2022年的利息支出約為1.2億美元，折舊支出約為8,500萬美元，資本支出約為9,000萬美元。

As a result of the acquisition of Chubb, we anticipate our adjusted effective cash tax rate to increase to approximately 24%.

由於收購了 Chubb，我們預計調整後的有效現金稅率將增加至約 24%。

Our adjusted diluted weighted average share count for the fourth quarter was 229 million and will be approximately 269 million for the first quarter in 2022.

我們第四季的調整後稀釋加權平均股數為 2.29 億股，2022 年第一季將達到約 2.69 億股。

As discussed on prior calls, for the $800 million perpetual preferred equity financing in connection with the Chubb transaction, there is a 5.5% annual dividend payable on a quarterly basis in cash or, at the company's option, in kind by payment of additional shares of common stock. We will decide at the time the dividend is due whether we will pay in cash or stock based on the company's cash flows and balance sheet position.

正如先前電話會議所討論的，對於與 Chubb 交易相關的 8 億美元永久優先股融資，將按季度以現金或公司選擇以實物形式支付 5.5% 的年度股息。我們將在股息到期時根據公司的現金流量和資產負債表狀況決定以現金還是股票支付。

For the first quarter, we have communicated our intent to paying cash. The annual dividend amount is expected to be approximately $44 million, and the perpetual preferred may be converted at any time by the holder into common stock at a conversion price of $24.60.

就第一季而言，我們已表達了支付現金的意向。預計年度股息約4,400萬美元，永久優先股持有人可隨時以24.60美元的轉換價格轉換為普通股。

From a capital allocation perspective, our near-term focus remains on deleveraging through the high free cash flow conversion offered by our asset-light operating model. Following the close of the Chubb transaction on January 3, our net debt-to-adjusted EBITDA ratio was approximately 3.9. We expect to deliver on our average adjusted free cash flow conversion of approximately 80% over the coming years and intend to use the cash generated to reduce debt on average by approximately 1x annually to return to our targeted long-term range of 2 to 2.5x.

從資本配置角度來看，我們近期的重點仍然是透過輕資產營運模式帶來的高自由現金流轉換率來實現去槓桿。 1月3日丘博交易完成後，我們的淨債務與調整後EBITDA之比約為3.9。我們預計未來幾年平均調整後自由現金流轉換率將達到約80%，並計劃利用產生的現金每年平均減少約1倍的債務，以恢復到2至2.5倍的長期目標範圍。

I will now turn the call over to Jim.

我現在將電話轉給吉姆。

Thanks, Kevin.

謝謝，凱文。

APi's execution against its goal despite supply chain disruptions, inflationary pressures and COVID-19-related disruptions speaks to the strength of the company's recurring revenue, services-focused business model, the discipline in the organization and its leadership team as we continue to focus on shareholder value creation.

儘管面臨供應鏈中斷、通膨壓力和新冠疫情相關影響，APi 仍實現了目標，這證明了公司經常性收入、以服務為中心的業務模式、組織紀律性和領導團隊的實力，我們將繼續專注於為股東創造價值。

As Russ mentioned, we entered 2022 with positive momentum on many fronts. Notably, the Chubb acquisition meets our previously stated key strategic investment criteria.

正如Russ所提到的，當我們進入2022年時，在許多方面都保持著積極的勢頭。值得注意的是，收購Chubb符合我們先前提出的關鍵策略投資標準。

Chubb has a history of strong free cash flow generation, they are leaders in their niche markets and they have an experienced leadership team. The acquisition significantly expands our geographical reach from 200-plus locations to 500-plus locations and strengthens our protective moat through greater statutorily required activities, recurring revenue with 50%-plus of our revenue now coming from service-related activities. As we begin the process of integrating Chubb, we are simultaneously investing in the growth of its platform across and generating synergies across our combined platform.

安達保險擁有強勁的自由現金流生成歷史，是其細分市場的領導者，並擁有經驗豐富的領導團隊。此次收購顯著擴展了我們的地域覆蓋範圍，從200多個地點增至500多個地點，並透過更嚴格的法定要求活動和經常性收入增強了我們的護城河，目前我們50%以上的收入來自服務相關活動。隨著安達保險整合工作的啟動，我們將同時投資於其平台的成長，並在合併後的平台上產生綜效。

To help drive value and deliver on our commitments, we have enhanced our team with new global leaders, adding depth to our bench as we plan for the future together as one team united by market-leading brands across the globe. As we move forward, we believe our combined leadership team will drive towards maximizing business performance and capitalizing on future cross-selling opportunities. Our aligned and incentivized performance-based culture will help drive Chubb as it has at APi.

為了提升價值並兌現承諾，我們引進了新的全球領導者，增強了團隊實力，增強了團隊深度，我們將攜手全球市場領先品牌，共同規劃未來。我們相信，在未來的發展中，合併後的領導團隊將致力於最大限度地提升業務績效，並把握未來的交叉銷售機會。我們協調一致、激勵機制強的績效文化將協助安達保險，如同在APi。

We are focused on making the right choices for the long-term health of the business, being opportunistic on M&A and remain focused on creating sustainable shareholder value.

我們專注於為企業的長期健康做出正確的選擇，抓住併購機會，並繼續致力於創造可持續的股東價值。

While we expect to be at a net leverage ratio of around 4.1x at closing of the Chubb transaction, as Kevin mentioned, our net debt-to-adjusted EBITDA ratio was approximately 3.9x following the close, and our revenue backlog remained at a record high level. Both of these metrics are great indicators of the positive momentum in the business. We have a very healthy balance sheet and strong organic revenue prospects for the year ahead.

正如Kevin所說，我們預計在安達保險交易完成時，淨槓桿率約為4.1倍，但交易完成後，我們的淨債務與調整後EBITDA之比約為3.9倍，且我們的收入積壓訂單仍處於創紀錄的高位。這兩個指標都充分錶明了業務的積極勢頭。我們的資產負債表非常穩健，未來一年的有機收入前景也十分強勁。

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

好了，現在我想把電話轉回給接線生，並開始問答環節。凱瑟琳？

(Operator Instructions) We'll take our first question today from Markus Mittermaier with UBS.

（操作員指示）今天我們將回答瑞銀 (UBS) 的 Markus Mittermaier 提出的第一個問題。

Markus, congratulations on the baby.

馬庫斯，恭喜你有寶寶了。

Thank you very much. Could I maybe start with rough -- I know that you visited a lot of sites of Chubb over the recent weeks. What's your kind of impression compared to the expectations that you had during the due diligence now that you've actually seen the folks?

非常感謝。我能不能先粗略地介紹一下呢？我知道您最近幾週參觀了丘博的許多地方。現在您已經親眼見到了他們，與盡職調查期間的預期相比，您有什麼印象？

Yes. Thanks -- thank you, Markus. I would say better than expected. And I mentioned in my remarks that Kevin, myself and a number of our teammates, we spent really the first 8 or 9 days after the transaction close moving around to a number of different locations inside the Chubb organization, and I was impressed. And the branch leaders really grew up in the business. They -- they're really solid, good operators. I felt really good about the quality of the leadership. The country-level leadership, both the U.K., was really solid, and I felt really positive about it.

是的。謝謝——謝謝你，馬庫斯。我想說比預期的還要好。我在演講中提到，凱文、我以及我們的一些隊友在交易結束後的頭八九天裡，在丘博公司內部的多個不同地點輾轉，這給我留下了深刻的印象。分公司的領導者在業務中也真正成長了。他們——他們非常可靠，是優秀的經營者。我對領導階層的素質感到非常滿意。包括英國在內的各個國家級領導階層都非常可靠，我對此感到非常樂觀。

I think that one of the things that has been missing in the past was visibility from the company's leadership in the businesses and in the branches, and that was really obvious as we moved around and really got a chance to interact with all of the different team members in the different locations that we're at and how enthusiastic they were.

我認為過去缺少的一件事就是公司領導層對各業務部門和分支機構的了解，這一點在我們四處走動並真正有機會與不同地點的所有團隊成員進行互動以及他們有多麼熱情時變得非常明顯。

We also -- while we were there, we also had a town hall meeting that we opened up to every single one of the Chubb employees across the globe, and we had 2,700 people participate in that session. So doing that virtually was not the easiest and maybe not the most efficient, but the enthusiasm and the excitement that came across from our new teammates was fantastic. The chat line was like lit up and on fire, and it was really cool. And I personally came away from that trip really fired up about the opportunities that are in front of us.

我們在那裡還舉行了一次全體會議，面向全球所有 Chubb 員工開放，共有 2,700 人參加。雖然線上會議並非最輕鬆，效率也並非最高，但新隊友們展現的熱情和興奮令人振奮。聊天熱線就像燃起了熊熊烈火，非常酷。我個人對這次旅行感到非常興奮，因為我們面前有無限的機會。

And I think that our culture and purpose of building great leaders is exactly what's missing. Those team members need investment in them as people just like we've been investing in the employees of APi. So better than expected.

我認為，我們培養優秀領導者的文化和目標恰恰是我們所缺乏的。這些團隊成員需要投資，就像我們投資APi的員工一樣。所以比預期的還要好。

That's very helpful color. And then maybe in terms of the revenue guide, the 6% to 7% organic, obviously, I guess, on the legacy APi business now, how should we expect these new additions from the Chubb side to develop? Should we expect some sort of revenue or project selectivity here in the first year? You mentioned that particularly in the life safety segment, high-teens margins. How do you think about that? I know it's early days and you're probably still going through the various P&Ls. But how big is that opportunity on the revenue selectivity side?

這很有幫助。那麼，就收入指引而言，顯然，目前傳統的APi業務有機成長率為6%到7%，那麼我們該如何預期Chubb新增的業務會發展呢？我們是否應該預期第一年會有某種收入或項目選擇性？您提到了這一點，尤其是在生命安全領域，利潤率高達15%左右。您對此有何看法？我知道現在還處於初期階段，您可能仍在研究各種損益表。但在收入選擇性方面，這種機會有多大？

Well, I think there's a few things at play as it relates specifically to Chubb. Chubb had year-on-year revenue growth last year of roughly 5% even though they were off in the fourth quarter approximately 3% on -- in comparison to 2020. And most of that was driven by supply chain issues and the pandemic. We believe that once we kind of get moving forward with Chubb, that we should be able to generate organic growth at a clip very similar to APi's on traditional.

嗯，我認為有幾個因素在起作用，尤其與安達保險有關。安達保險去年的營收年增了約5%，儘管第四季的營收與2020年相比下降了約3%。這主要是由於供應鏈問題和疫情的影響。我們相信，一旦安達保險開始推進，我們應該能夠實現與APi在傳統業務上非常相似的有機成長。

We do need to spend more time understanding the end markets that they serve. They have more exposure to retail, as an example, than, say, our current business does. They don't have a significant issue with collections and receivables, et cetera. But we will spend some more time on customer selection and project selection as we get involved.

我們確實需要花更多時間去了解他們所服務的終端市場。例如，他們在零售領域的業務比我們目前的業務更豐富。他們在收款和應收帳款等方面沒有太大的問題。但隨著我們進一步深入合作，我們會在客戶和專案選擇上投入更多時間。

We have instituted our same kind of no-go/go policy that we use for APi when we're proposing on larger opportunities inside of Chubb already. So we'll start to see more of those kind of flow through the system as well.

我們已經制定了與APi相同的「不通過/通過」政策，用於在Chubb內部提出更大的投資機會。因此，我們也會開始看到更多類似的流程在系統中出現。

Chubb's average project size happens to be smaller than the average project size for core APi. Their -- the percentage of service that they do is roughly 60%. So that's very complementary to our portfolio. So we -- we're opportunistic, though we're still kind of gathering information and evaluating where they're at.

丘博的平均專案規模恰好小於核心APi的平均專案規模。他們提供的服務佔比約為60%。這與我們的投資組合非常互補。因此，我們——我們——機會主義，儘管我們仍在收集資訊並評估他們的現狀。

We'll go now to Andy Kaplowitz with Citigroup.

我們現在請花旗集團的 Andy Kaplowitz 發言。

Russ, it seemed like you had a relatively big sequential acceleration in Q4 both in Safety and Specialty Services. Well, I think you mentioned maybe a little bit of pent-up demand in safety, but did you see projects start to flow more regularly in specialty? Or maybe you can comment on taking share. Could you give us a little more color in terms of reasons for the acceleration? And did it continue into Q1?

Russ，看起來你們在第四季的安全服務和專業服務方面都出現了相對較大的環比增長。嗯，我想您提到了安全領域可能有一些被壓抑的需求，但您是否看到專業服務領域的專案開始更頻繁地流動？或者您可以評論一下市場佔有率的提升。能否詳細介紹一下成長的原因？這種成長趨勢是否延續到了第一季？

I think you a little bit -- I think you have a number of things really at play there, Andy, specifically in Safety Services. That's where our HVAC services businesses lie. They -- if you go back to 2020, they had a number of their project-related opportunities slip out to the right. As I mentioned at your conference, we were fortunate that most of those opportunities did not get canceled. They just slid from a schedule perspective. And we saw some of that really start to flow through the system here again in 2021 right up through the end of the quarter.

安迪，我認為你確實有很多事情在發揮作用，尤其是在安全服務方面。這就是我們的暖通空調服務業務所在。如果回顧2020年，他們有很多與專案相關的機會被擱置了。正如我在你們的會議上提到的，我們很幸運，大多數機會都沒有被取消。它們只是從進度安排的角度有所下滑。我們看到其中一些機會在2021年真正開始再次進入我們的系統，一直到本季結束。

We also -- if you'd switch to Specialty Services, we have -- our structural manufacturing business happens to be fortunate to call Amazon a customer of ours, and the demand there has remained robust. And so we've been able to capture a number of nice opportunities there. We also have some larger project-related opportunities that really continued to be really strong right up through the end of the year. So we just -- I think it was just really fortunate for us with some of the project-related opportunity that we had on the books already.

如果您換到專業服務的話，我們的結構製造業務恰好很幸運地擁有亞馬遜這樣的客戶，而且那裡的需求一直保持強勁。因此，我們在那裡抓住了許多不錯的機會。我們也有一些與專案相關的大型機會，這些機會一直持續到年底都非常強勁。所以，我認為我們很幸運，因為我們已經擁有一些與專案相關的機會。

That's very helpful, Russ. And then could you give us some more color? You gave us quarterly cadence now in sales and EBITDA because it looks like you assume more normalized margin in Q2 versus Q1. So how are you thinking about labor pressure, supply chain on your margin versus your pricing? Is it true that you're assuming a more normalized environment in Q2? Or does the guide still incorporate some supply chain-related headwinds for the rest of the year?

這很有幫助，Russ。然後可以再多介紹一下嗎？您現在提供了銷售額和EBITDA的季度數據，因為您似乎認為第二季的利潤率會比第一季更正常。那麼您如何看待勞動力壓力、供應鏈對利潤率和定價的影響？您真的假設第二季的市場環境會比較正常嗎？或者，這份財報指南仍包含今年剩餘時間的一些與供應鏈相關的不利因素？

Well, we expect supply chain to -- supply chain issues to be, I guess, problematic through -- for sure, the second quarter. I would also tell you that just the mindset and the way we approach things here is that, that's our responsibility to manage. And so we can't use that as a (inaudible) as we continue to lead the business, and that's just part of the process. So we do expect to continue to battle supply chain inflation. Obviously, some of the things that are happening in our world will continue to have impacts on that.

嗯，我們預計供應鏈問題肯定會持續到第二季。我還想說，我們目前的思考方式和處理方式是，這是我們的責任。因此，我們不能把它當作（聽不清楚），因為我們會繼續引領業務，這只是整個過程的一部分。所以我們確實預期將繼續應對供應鏈通膨。顯然，我們世界上正在發生的一些事情將繼續對此產生影響。

Labor is tough. And there, you have a -- I view it as being more geographically market specific. I also believe that our core purpose of building great leaders and our willingness to invest in the men and women that are actually getting the work done in the field at our customer sites is an advantage for us. And I think that, that's something that's positive where we -- if we can retain our labor force first, then that allows us to continue to build and add.

勞動力很艱難。而且，我認為這與地域市場息息相關。我還認為，我們的核心目標是培養優秀的領導者，我們願意投資那些在客戶現場實際完成工作的男女員工，這對我們而言是一個優勢。我認為這對我們來說是正面的——如果我們能夠先留住勞動力，那麼我們就能繼續建設和擴張。

We've also done some really creative things like -- one of our businesses has created an apprenticeship program that's actually certified and -- for fire alarm technicians. So we're able to hire and grow our own fire alarm technicians. And we're doing some things across the business. We've got some really interesting and unique hiring programs, taking advantage of the men and the women that are exiting the military service.

我們也做了一些非常有創意的事情，例如——我們的一家公司創建了一個學徒計劃，該計劃實際上是針對消防警報技術人員的認證計劃。這樣我們就可以招募和培養我們自己的消防警報技術人員。我們也在整個公司範圍內進行了一些工作。我們有一些非常有趣且獨特的招聘計劃，充分利用了即將退休的男女員工。

And so we continue to be creative as we look to complement and build out our workforce and -- because that's something that's very important to us as being in a people-centered business.

因此，我們將繼續發揮創造力，尋求補充和擴充我們的員工隊伍——因為對於以人為本的企業來說，這一點非常重要。

Russ, just a very quick last one. No exposure to Russia, Ukraine for legacy or new business?

拉斯，最後問個很簡短的問題。在俄羅斯和烏克蘭沒有業務拓展，或是沒有新業務嗎？

None.

沒有任何。

We'll take our next question from Julian Mitchell with Barclays.

我們將回答巴克萊銀行的朱利安·米切爾提出的下一個問題。

And Jim, good to see you last week, and I hope you'll say ours was a better conference. But in terms of perhaps the free cash flow, first off, I just wanted to talk about the expectations there. You had free cash flow, I think, half last year and then the conversion in the mid-50s. As we look at 2022, you've got maybe some easing of the working cap headwind but then Chubb's cash flow coming in. So how do we think about free cash conversion in aggregate this year or sort of percentage increase?

吉姆，很高興上週見到你，希望你會說我們的會議更好。但就自由現金流而言，首先，我想談談這方面的預期。我想，去年你們有一半的自由現金流，然後轉換率約50%。展望2022年，你們的營運資金逆風可能會有所緩解，但隨後丘博的現金流開始流入。那麼，我們如何看待今年自由現金轉換的整體情況，或者說百分比的成長？

This is Kevin. I'll take that. Yes. So just as we've talked about previously, 2020 was a year where we consumed working capital as revenue came down throughout that period because of the pandemic. So we ended 2020 with a very low working capital base. As we came back in 2021, we continued to invest in working capital.

我是凱文。我接聽。是的。正如我們之前提到的，2020年是我們的營運資本消耗年，因為疫情導致收入下降。所以2020年結束時，我們的營運資本基礎非常低。 2021年我們繼續投資營運資本。

We talked on the last call about how Q4 was going to be a strong period for us, which it traditionally is. The only difference there was we overdelivered from -- versus our anticipate -- or expectations in Q4. So didn't harvest as much from Q3 to Q4 as we thought but still a very strong delivery in Q4, ending at 55%.

我們在上次電話會議上談到，第四季對我們來說將是一個強勁的時期，這在以往也是理所當然的。唯一的不同之處在於，第四季我們的業績超出了預期。因此，從第三季度到第四季度，我們的業績沒有像預期的那樣好，但第四季度的交付量仍然非常強勁，達到了55%。

When you -- well, as we move into 2022, of course there'll be some additional investment. We're going to continue to work on working capital rate.

嗯，隨著我們進入2022年，當然會有一些額外的投資。我們將繼續致力於提高營運資本率。

I'll say the profile of Chubb's free cash flow delivery is very much in line with our expectation and the delivery of our Safety Services segment. So we definitely -- and as we move into '22 and for the year, we anticipate improving off that 55% number and working back towards our longer-term target which we've talked a bit about, which is approximately 80%. And with Chubb, we're not changing that expectation or benchmark.

我想說的是，安達保險的自由現金流交付情況與我們的預期以及我們安全服務部門的交付情況非常一致。因此，隨著我們邁入2022年，我們預計今年的自由現金流將在55%的基礎上有所提升，並朝著我們之前談到的長期目標——大約80%——努力。對於安達保險，我們不會改變這個預期或基準。

Got it. And so we should expect sort of the year-end leverage at 2022 to be, what, around 3x or so?

明白了。那麼，我們預期2022年底的槓桿率應該在3倍左右嗎？

Yes. Look, we're -- we ended at -- or at the close of Chubb, as Jim said and I referenced, we were about 3.9x. And there's a couple of factors -- that will depend on how we manage the year, but our expectation is we're going to manage down by approximately 1x and target towards 2023 to get to that 2 to 2.5x.

是的。你看，正如Jim和我所提到的，在Chubb收盤時，我們的本益比大約是3.9倍。這其中有幾個因素，取決於我們如何管理這一年，但我們的預期是，將本益比降低約1倍，目標是到2023年達到2到2.5倍。

Julian, this is Jim. Well, first of all, it was a lovely conference as well. So I don't want you to feel slighted. But two, we're going to continue to be opportunistic looking at M&A. And so we can -- if we buy right at the right multiple with a company with good, healthy M&A -- or EBITDA, then we can improve our debt-to-EBITDA ratio through M&A.

朱利安，我是吉姆。首先，這是一次很棒的會議。所以我不想讓你覺得被怠慢了。其次，我們將繼續抓住機會，積極考慮併購。這樣，如果我們以合適的倍數收購一家併購業績良好且健康的公司——或者說息稅折舊攤銷前利潤 (EBITDA)，那麼我們就可以透過併購來改善我們的債務與EBITDA之比。

But also, we're going to generate a lot of cash. But as Kevin pointed out, we're going to also be improving revenue through the course of the year, which will eat into cash flow conversion. But we're very bullish on our ability to delever, fund the business. And as Kevin said, we expect, on average, to delever about 1 turn a year and be back down to our targeted range of 2, 2.5x over the next 3 years or so.

而且，我們也將產生大量現金。正如凱文指出的那樣，我們今年的收入也將有所提高，這將影響現金流的轉換率。但我們對去槓桿和業務融資的能力非常有信心。正如凱文所說，我們預計平均每年將去槓桿約一倍，並在未來三年左右回到我們2到2.5倍的目標範圍。

That's helpful, Jim. And so for the year as a whole, just to sort of sum it up, we're looking at an adjusted free cash flow conversion maybe in the sort of 70s or 80s percent or 70s, let's say, percentage-wise. Is that fair?

這很有幫助，吉姆。所以，就全年而言，總結一下，我們預期調整後的自由現金流轉換率大概在70%或80%左右，或者說，以百分比計算，大概在70%左右。這樣公平嗎？

Directionally. Again, we'll see how the year goes, but we're redeploying cash back into the business.

方向性方面。我們會再看看今年的進展，但我們會把現金重新部署到業務中。

Two years ago, I want to say our free cash flow conversion was around 115%, 120%, which was out of the range. Last year, we were under the target of 80%. But on average, as you look at the business over a 3- or 4-year period, mathematically it'll be about 80% per year.

兩年前，我們的自由現金流轉換率大概在115%到120%之間，超出了預期。去年，我們低於80%的目標。但平均而言，如果以3到4年的時間來看，理論上每年的自由現金流轉換率應該在80%左右。

(Operator Instructions) We'll go now to Kathryn Thompson with Thompson Research.

（操作員指示）我們現在去找湯普森研究公司的凱瑟琳湯普森。

Always fun to have a spicy conference call during earnings season.

在收益季節召開一次有趣的電話會議總是很有趣的。

Following on, I appreciated your commentary on the European situation with no exposure in Ukraine. But pulling the string more and thinking about the unintended consequences or the domino effect that can happen from issues such as this not only in Europe but in Asia, how are you thinking about mitigating risk and also thinking about rising costs including fuel?

接下來，我很欣賞您對歐洲局勢的評論，儘管烏克蘭問題並未暴露。但進一步思考一下，考慮到此類問題不僅在歐洲，而且在亞洲可能造成的意外後果或多米諾骨牌效應，您是如何考慮降低風險，以及包括燃料在內的成本上漲的？

Yes. So maybe I'll take fuel first. I mean we have been on top of rising fuel prices and communicating with our businesses nonstop as we've seen some of the inflationary pressure coming forward. And wherever we possibly can, we've been adding fuel surcharges to our invoicing, factoring it into our current proposals.

是的。所以我可能會先說燃油。我的意思是，我們一直在密切關注燃油價格上漲，並且隨著通膨壓力的顯現，我們一直在與各業務部門保持溝通。而且，只要條件允許，我們就會將燃油附加費加入我們的發票中，並將其納入我們目前的方案中。

And again, Kathryn, I would just point everybody to the small project size that we have. APi's core business, they have -- our core life safety -- Safety Services business, our average project size is less than $10,000. Chubb's was approximately $2,500. And aggregate, we're at $5,000. So the quick-hitting nature of the work and the services that we provide allows us to factor all of those rising costs into our proposals and really pass them along.

凱瑟琳，我再說一遍，我想告訴大家，我們的專案規模都很小。 APi 的核心業務，也就是我們的核心生命安全—安全服務業務，我們的平均專案規模不到 1 萬美元。丘博的大約是 2,500 美元。總計起來，我們的專案規模是 5,000 美元。因此，我們工作和服務的快速反應特性使我們能夠將所有不斷上漲的成本納入我們的提案中，並真正將其轉嫁出去。

As we look at risk, our business in Hong Kong and China is high-performing business. We continue to communicate and -- with -- we have a very, very solid leader in that business as well, and we continue to communicate with those individuals and monitor the situation. And what I can tell you is that as we need to, we will adapt and adjust and take corrective action.

就風險而言，我們在香港和中國大陸的業務表現優異。我們持續與這些業務的領導者溝通，我們也擁有一位非常可靠的領導者，我們會持續與他們溝通並密切關注事態發展。我可以告訴大家的是，我們會根據需要進行調整，並採取糾正措施。

And so we really are spending a lot of time -- one of the biggest risks in business today is cyber. We have been putting a tremendous amount of effort into our cybersecurity and making sure that our business is really as best you possibly can be in this environment, protecting itself and building the right fences around the company so that we can stay protected. And it's getting a tremendous amount of attention from not only our IT leadership but from Kevin and me and all the way up to -- through the Board level. So we are continuing to monitor the business, and we will take corrective action where we need to.

因此，我們確實投入了大量時間——當今商業領域最大的風險之一就是網路。我們一直在網路安全方面投入大量精力，確保我們的業務在當前環境下盡可能保持最佳狀態，自我保護，並在公司周圍建立合適的防護，以確保我們能夠持續受到保護。這不僅引起了我們IT領導階層的極大關注，也引起了我和Kevin，甚至是董事會層面的高度重視。因此，我們將繼續監控業務，並在必要時採取糾正措施。

Okay. Very helpful. And I appreciate the reclassification of your operating segments. But just a follow-on in terms of kind of your legacy Industrial Services. It's been a lesser portion of your overall business. Is there still rightsizing and trimming of assets that maybe perhaps you're not the best owner? Help us think about just some of those assets as you look forward for planning.

好的。非常有幫助。我很感謝您對營運分部的重新分類。但我想問一下您之前保留的工業服務業務。它在貴公司整體業務中所佔的比例一直較小。您是否仍在精簡和削減資產，而這些資產或許您並非最佳所有者？在您規劃未來時，請您幫我們思考這些資產。

Yes. So first and foremost, we expect -- in those businesses that were formerly Industrial Services, we expect some bounce back in fiscal 2022. We're seeing some of the right types of opportunities as we -- to reposition the -- those businesses from a service perspective. And so we're optimistic that going forward, that we're not only off the bottom, but we're coming off the bottom and moving upward in the right direction.

是的。首先，我們預計，那些原先屬於工業服務的業務在2022財年會反彈。我們看到了一些合適的機會，我們正在從服務的角度重新定位這些業務。因此，我們對未來充滿樂觀，我們不僅已經走出谷底，而且正在朝著正確的方向前進。

Regarding disposition of any of those assets, I would just say that across the entire book of business, that if we need to prune something, we will prune it. And this last year was not the time to prune any of those Industrial Services assets. We will take the time to evaluate that as we move forward through the year and those businesses show improved results. But I would tell you that, that holds true for Safety Services and Specialty Services as well. We need to be constantly vigilant in looking at which businesses that we have are going to add to shareholder value.

關於處置任何資產，我想說的是，在整個業務範圍內，如果我們需要精簡某些資產，我們就會精簡。而去年並非精簡任何工業服務資產的時機。隨著今年這些業務的業績改善，我們會花時間評估這些資產。但我要告訴大家，安全服務和專業服務也是如此。我們需要時時保持警惕，並關注哪些業務能夠為股東增值。

We'll go now to Jon Tanwanteng with CJS Securities.

我們現在去拜訪 CJS Securities 的 Jon Tanwanteng。

Congratulations on a nice end to the year. My first one, what are the puts and takes to driving integration this year with Chubb? And I think if I read your prior press release correctly, the upper and lower bound to your EBITDA guidance, I guess maybe what are the gating factors there, number one?

恭喜您今年有個美好的結局。我的第一個問題是，今年推動與 Chubb 的整合有哪些優缺點？如果我沒看錯的話，您之前的新聞稿中提到了 EBITDA 指引的上限和下限，我想，首先，其中的限制因素是什麼？

And then number two, if you could talk a little bit more about the upside opportunity. I think you've been very broadly positive on Chubb. Do you expect to revise the synergy amount upwards as we go through the year or maybe into next year?

第二，您能否再多談談上行機會？我認為您對丘博的整體評價非常樂觀。您是否預計今年或明年會上調綜效的金額？

It's Jim. Would you mind if I just jumped in on this? Because Jon is trying to take your number up.

我是吉姆。你介意我插嘴一下嗎？因為喬恩想佔你的號。

So Jon, as many of you guys have heard and for those that participated in the Barclays and Citi conference and as we've talked about pretty openly, Russ and the team did not have great access from a physical presence standpoint to get into the Chubb facilities and meet with the Chubb teams. And so while we did thorough and robust diligence, Blackstone had their perspective on integration. [Algorithm Marcellus] had their theories on integration.

所以，喬恩，正如你們許多人以及參加巴克萊和花旗會議的朋友們所聽到的，正如我們公開討論過的，拉斯和他的團隊從實際到場的角度來看，無法很好地進入安達保險的設施並與安達保險的團隊會面。因此，雖然我們進行了徹底而有力的盡職調查，但黑石集團對整合有自己的觀點。 [Algorithm Marcellus] 對整合也有自己的理論。

And so our approach to all of this has been, let's get in there, let's get our boots on the ground, let's remove the theories, let's validate integration ideas and concepts, let's involve the Chubb team along with our team, let's build an action plan together during the first part of the year, let's then assign projects to people, assign accountability, put incentive plans in place and begin executing on those in the back half of the year, but make sure that we have ownership of those plans and we validate them across the entire platform across both sets of teams.

因此，我們對所有這一切採取的方法是，讓我們進入那裡，讓我們腳踏實地，讓我們拋開理論，讓我們驗證整合的想法和概念，讓我們讓 Chubb 團隊和我們的團隊一起參與進來，讓我們在上半年共同製定行動計劃，然後讓我們將項目分配給人員，分配責任，制定激勵計劃並在下半年開始執行它們並確保我們在整個平台上通過整個平台進行驗證。

And so we have $20 million built in the plan. You heard Kevin and Russ talk about we see incremental opportunities. But we're going to do this thoughtfully. This is a 3-year program to raise margins to 13%-plus. Chubb is part of that. And so we'll be talking about it.

因此，我們的計劃中已經投入了2000萬美元。您聽到凱文和拉斯談到我們看到了增量機會。但我們會慎重考慮。這是一個為期三年的計劃，旨在將利潤率提高到13%以上。丘博保險也參與其中。所以我們會討論這個問題。

But as you also heard Russ say, Chubb is now a brand. We're one company, one team. And so together, we will row the boat forward. But as Russ has also said, this is a center-of-the-fairway transaction. And so the things that are going to -- to be the variables are going to be supply chain, inflation, incremental COVID variants and things like that, but that's life.

但正如你聽到Russ所說，Chubb現在是一個品牌。我們是一家公司，一個團隊。因此，我們將攜手並進，共同前進。但正如Russ所說，這是一筆「航道中心」的交易。因此，未來可能出現的變數包括供應鏈、通貨膨脹、新冠疫情變異株的增加等等，但這就是生活。

(Operator Instructions) We'll go now to Andy Wittmann with Baird.

（操作員指示）我們現在將和貝爾德一起去找安迪·威特曼。

I guess maybe for Kevin. I mean you guys -- on the margin improvement initiatives you guys have done, you've improved the loss-making projects, the customer selection. There's various tick points that you guys have laid out over the years about how margins are going to go up. One of them was about putting new back-office systems in, get on the same system, get more efficient that way. And I know that's an ongoing process, so I was hoping you could give us an update as to where you are in that process and when you expect that IT integration to start delivering towards your margin expansion goals.

我想也許對凱文來說是這樣。我的意思是，你們——在你們實施的利潤提升計劃中，你們改進了虧損項目，優化了客戶選擇。多年來，你們提出了各種提升利潤率的要點。其中之一就是引進新的後台系統，使用相同的系統，以此提高效率。我知道這是一個持續的過程，所以我希望你們能更新你們的進度，以及你們預期IT整合何時能開始實現利潤成長目標。

Thanks for the question. Yes. So as we look at our combined platform with Chubb, so we said last year at our investor conference that certainly, this was one of the areas that we saw opportunity for leverage and productivity as we move forward here and to drive continued scale across our business and certain you refer to as back-office functions and/or potentially even procurement and some other areas.

謝謝你的提問。是的。我們去年在投資者會議上就談到了與丘博的合併平台，這無疑是我們在推進業務發展過程中，看到提升槓桿率和生產力機會的領域之一，也有助於推動我們業務的持續擴張，包括你提到的某些後台職能，甚至可能是採購和其他一些領域。

As we went through the back half of this year, we put that on hold, really looking at -- wanting to look at Chubb, too, and look at what we're doing in the context of those Chubb businesses. And so I shouldn't even have said hold. We paused it or slowed it down as we understood what the Chubb transaction needed to look like and the work needed to look like in 2022.

今年下半年，我們暫停了這項工作，認真審視——也想看看安達保險，看看我們在安達保險業務的背景下做了什麼。所以我什至不應該說「暫停」。我們暫停了，或者說放慢了速度，因為我們了解了安達保險的交易需要是什麼樣子，以及2022年需要做的工作是什麼樣子。

As we conclude on our Chubb planning here in the first half of the year, we are going to turn an eye back to that and look at how we can now build out a back-office leverage program that includes Chubb and our legacy businesses as we go forward here.

當我們在今年上半年完成 Chubb 規劃時，我們將回顧過去，研究如何建立一個包括 Chubb 和我們傳統業務在內的後台槓桿計劃。

So I don't anticipate seeing anything on that in 2022, but the work will get back underway in the back half of the year that should help us as we move forward here.

因此，我預計 2022 年不會看到任何相關進展，但這項工作將在下半年重新開始，這將有助於我們向前邁進。

Okay. That's helpful. I guess another one for you. I just -- you gave us all the pieces here, walking from EBITDA down to EPS. But just to make sure that my math is right, it sounds like at the midpoint, you guys are thinking around $1.32 on adjusted EPS. Is that about right with the assumptions you gave us on the breakdown there, Kevin? Or what's the EPS range that's implicit with this guidance maybe?

好的。這很有幫助。我想再問你一個問題。你把所有資料都給了我們，從EBITDA到EPS。但為了確保我的計算正確，聽起來你們認為中間值調整後的每股盈餘約為1.32美元。凱文，根據你之前給的細分假設，這個數字對嗎？或者，這份指引中隱含的每股盈餘範圍是多少？

Yes, for 2022, yes, we're at or around $1.32, $1.33 at the midpoint.

是的，對於 2022 年來說，是的，我們處於或接近 1.32 美元，中間價為 1.33 美元。

This will conclude our Q&A session. At this time, I'd like to turn it back to Russ Becker for closing remarks.

我們的問答環節到此結束。現在，我想請拉斯貝克爾作最後發言。

Yes, thank you. In closing, I would first like to start by thanking all of our team members for their efforts in 2021. And I'm particularly proud of the progress that we've made in the midst of all the different challenges that the business faced. So I'm truly grateful for everyone's hard work and efforts.

是的，謝謝。最後，我首先要感謝我們所有團隊成員在2021年的努力。我尤其為我們在公司面臨的各種挑戰中所取得的進步感到自豪。因此，我衷心感謝大家的辛勤工作和付出。

I'd also like to take the opportunity to thank each of you for joining the call this morning and your continued interest in APi. We truly look forward to updating each of you throughout the year as we continue to cross many, many milestones and drive the business forward. So thank you and have a great rest of your day.

我也想藉此機會感謝各位今天上午參加電話會議，以及大家對APi的持續關注。我們真誠期待在新的一年與各位分享最新進展，因為我們將繼續跨越許多里程碑，推動業務發展。謝謝大家，祝大家今天過得愉快！

This does conclude today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。