Brightview Holdings Inc (BV) 2024 Q2 法說會逐字稿

Good morning, everyone, and welcome to the BrightView Holdings second-quarter 2024 earnings call. (Operator Instructions)

大家早安，歡迎參加 BrightView Holdings 2024 年第二季財報電話會議。 （操作員說明）

With that, I'll turn the conference over to Christos Sky. Please go ahead. When you're ready.

這樣，我將把會議交給 Christos Sky。請繼續。當你準備好時。

Good morning, and thank you for joining BrightView's second-quarter of fiscal 2024 earnings call. Dale Asplund, BrightView's President and Chief Executive Officer; and Brett urban, Chief Financial Officer are on the call. I'll now refer you to slide 2 of the presentation, which can also be found on our Investor Relations website and contains our Safe Harbor disclaimer in our presentation and today's call include forward-looking statements subject to certain risks and uncertainties. In addition, during the call, we'll refer to certain non-GAAP financial measures. Please see our press release and 8K issued yesterday for a reconciliation of these non-GAAP financial measures.

早安，感謝您參加 BrightView 2024 財年第二季財報電話會議。 BrightView 總裁兼執行長 Dale Asplund；財務長 Brett Urban 正在通話。現在我將向您介紹簡報的第2 投影片，該投影片也可以在我們的投資者關係網站上找到，其中包含我們簡報中的安全港免責聲明，並且今天的電話會議包括受某些風險和不確定性影響的前瞻性陳述。此外，在電話會議期間，我們將參考某些非公認會計準則財務指標。請參閱我們昨天發布的新聞稿和 8K，以了解這些非 GAAP 財務指標的調整表。

I'll now turn the call over to Dale.

我現在將把電話轉給戴爾。

Thank you, Chris, and good morning, everyone. I would like to begin by briefly reflecting on my first seven months of CEO., we have made incredible progress in such a short period of time, and our organization's ability to absorb these changes has been exceptional. As I sit here today, I am even more enthusiastic than I was on day one about the incredible opportunities ahead of us. I have the utmost confidence that all the changes we are making to transform this business are the right long-term decisions to operate as a unified one BrightView drive profitable growth and create shareholder value.

謝謝你，克里斯，大家早安。首先，我想簡要回顧一下我擔任執行長的前七個月。當我今天坐在這裡時，我對我們面前的難以置信的機會比第一天更加充滿熱情。我堅信，我們為實現這項業務轉型而做出的所有改變都是正確的長期決策，能夠作為一個統一的 BrightView 運營，推動利潤成長並創造股東價值。

I will start today on slide 4 by emphasizing our achievements and ongoing progress along with strategic updates that will enhance our position to accomplish our objectives through the first half of the year. Our commitment to executing our strategic vision and focusing on profitable growth has proven successful. As a result, we are reaffirming our full year EBITDA midpoint in raising our margin and free cash flow guidance, all while selling our franchise business unwinding our non-core aggregator business and snowfall coming in at the low end of our original guidance range, we have seen meaningful growth in profitability and margin expansion and are gaining momentum in our business as we continue to implement our strategy of operating as one BrightView.

我將從今天的幻燈片 4 開始，強調我們的成就和持續進展以及策略更新，這將增強我們在今年上半年實現目標的地位。事實證明，我們對執行策略願景和專注於獲利成長的承諾是成功的。因此，我們重申全年 EBITDA 中點，提高利潤率和自由現金流指導，同時出售我們的特許經營業務，解除我們的非核心聚合業務，並且降雪量處於我們最初指導範圍的低端，我們隨著我們持續實施BrightView 一體化營運策略，我們的獲利能力和利潤率顯著成長，且業務勢頭強勁。

As we move forward, we are confident that the actions we are taking will improve our ability to deliver on our strategic initiatives and enhance our position as a number one player in the commercial landscape industry after a strong beginning in Q1, we continued our momentum in Q2 marked by margin improvement across all our operating segments.

隨著我們的前進，我們相信，我們正在採取的行動將提高我們實施戰略舉措的能力，並在第一季度的強勁開局後增強我們作為商業景觀行業第一大企業的地位，我們繼續保持這一勢頭第二季我們所有營運部門的利潤率均有所改善。

This reflects the early returns on our actions and investment in operating as one BrightView also contributing to our results and outlook is our focus on the core businesses while deemphasizing the non-core. On our Q1 call, we discussed the divestiture of our US loans business, which we sold at a highly attractive, low 10s multiple. But additionally, we have evaluated and are actively unwinding our non-core aggregator business known as BES. It's important to note this action will have no impact on our bottom line. Brett will discuss the full impact of this unwind during the financial segment of today's call.

這反映了我們作為一個 BrightView 營運的行動和投資的早期回報，這也對我們的業績和前景做出了貢獻，那就是我們專注於核心業務，同時淡化非核心業務。在第一季的電話會議上，我們討論了美國貸款業務的剝離，我們以極具吸引力的低十倍市盈率出售了該業務。但此外，我們已經評估並正在積極剝離我們稱為 BES 的非核心聚合器業務。值得注意的是，這項行動不會對我們的利潤產生影響。布雷特將在今天電話會議的金融部分討論這種放鬆的全面影響。

Ultimately, this decision stems from our commitment to operate as a unified BrightView, maintained high quality brand reputation and focus on our self-performing core businesses. During the quarter, we introduced initial programs aimed at prioritizing the safety and well-being of our employees, notably our boots program.

最終，這項決定源於我們作為統一的 BrightView 經營、維持高品質品牌聲譽並專注於自我績效核心業務的承諾。在本季度，我們推出了旨在優先考慮員工安全和福祉的初步計劃，特別是我們的靴子計劃。

Additionally, we advanced the one BrightView culture by streamlining our operating structure to reinforce our revitalized go-to-market strategy under a less is more approach. These initiatives are designed to inspire our frontline employees, enhance our ability to service customers and underscore BrightView's dedication and progress towards operating as one BrightView.

此外，我們也透過簡化營運結構來推進「One BrightView」文化，以「少即是多」的方式強化我們重振的市場策略。這些措施旨在激勵我們的第一線員工，提高我們服務客戶的能力，並強調 BrightView 在作為 BrightView 營運方面的奉獻精神和進步。

On slide 5, I'll showcase our boots program in partnership with Red Wing shoes to equipped over 18,000 team members with high-quality footwear, further highlighting our investment in our team, our dedication to providing team members with the best personal protective equipment is not only an investment in their safety and well-being. It also inspires them to deliver exceptional service to our customers. As you can see from the picture on the right employee reaction has been incredible.

在投影片5 上，我將展示我們與Red Wing Shoes 合作的靴子計劃，為超過18,000 名團隊成員配備高品質鞋類，進一步強調我們對團隊的投資，我們致力於為團隊成員提供最好的個人防護裝備不僅僅是對他們的安全和福祉的投資。它也激勵他們為我們的客戶提供卓越的服務。正如您從右圖中看到的那樣，員工的反應令人難以置信。

This picture reflects Carlos of choice from our owners' County, California branch receiving his pair of boots. It is one example of countless inspirational moments. This initiative created where we truly focus on prioritizing our employees.

這張照片反映了我們業主的加州縣分公司選擇的卡洛斯收到了他的一雙靴子。這是無數鼓舞人心時刻的例子之一。這項措施讓我們真正專注於優先考慮員工。

Moving to slide 6, let's discuss our streamlined operating structure. So far this year, we implemented significant measures to enhance our go-to-market strategy as we operate as one BrightView central to these efforts was the realignment of our operating structure aimed at ensuring optimal market and customer coverage while maximizing efficiency and effectiveness.

轉到投影片 6，讓我們討論一下我們簡化的營運結構。今年到目前為止，我們實施了重大措施來加強我們的市場進入策略，因為我們作為BrightView 的一員進行運營，這些努力的核心是調整我們的營運結構，旨在確保最佳的市場和客戶覆蓋，同時最大限度地提高效率和效益。

This structure allows for fewer layers and removes silos and puts us closer to our customers by eliminating inefficiencies and aligning under one BrightView. This improve structure enhances our capabilities with both new and existing customers. At the market level, our maintenance and development segments are now aligned, fostering meaningful growth opportunities.

這種結構可以減少層數並消除孤島，並透過消除效率低下和在一個 BrightView 下進行協調來拉近我們與客戶的距離。這種改進的結構增強了我們與新客戶和現有客戶的合作能力。在市場層面，我們的維護和開發部門現已協調一致，創造了有意義的成長機會。

Our sales and operations are now integrated at the branch level reinforcing our focus on cross-selling opportunities. Additionally, we also elevated one of our most seasoned leaders into our Chief Commercial Officer, overseeing all aspects of growth. Positioning ourselves for success is paramount and I am confident these actions will drive us forward and lead to enhanced service and profitable growth.

我們的銷售和營運現已在分公司層級進行整合，加強了我們對交叉銷售機會的關注。此外，我們還將一位經驗最豐富的領導者提拔為首席商務官，負責監督成長的各個方面。為自己的成功定位至關重要，我相信這些行動將推動我們前進，並帶來更好的服務和利潤成長。

Before turning the call over to Brett to discuss our financial results for the quarter. I want to summarize on slide 7 how what we are doing today. Brightview is positioning us for sustainable success over the long term as the nation's largest provider in our industry. There is tremendous opportunity to leverage our size and scale to unlock growth in our business and gain market share.

在將電話轉給布雷特討論我們本季的財務表現之前。我想在投影片 7 上總結我們今天所做的事情。 Brightview 使我們能夠長期取得可持續的成功，成為該行業全國最大的供應商。我們有巨大的機會利用我們的規模來實現業務成長並獲得市場份額。

Our streamlined operations and go-to-market strategy as one BrightView will allow us to begin to convert more development services into reoccurring maintenance work. This is a simple example of a previously untapped opportunity in order to maximize our potential and capitalize on our opportunities, we must be the best at what we do and provide best-in-class service to our customers. By simplifying our customer satisfaction survey and leveraging predictive AI technology.

BrightView 的簡化營運和進入市場策略將使我們能夠開始將更多的開發服務轉化為經常性的維護工作。這是一個以前未開發的機會的簡單例子，為了最大限度地發揮我們的潛力並利用我們的機會，我們必須在我們所做的事情上做到最好，並為我們的客戶提供一流的服務。透過簡化我們的客戶滿意度調查並利用預測性人工智慧技術。

We have significantly improved our communication with customers and our ability to proactively service their needs. These efforts, combined with investments in our employees are aimed at driving higher customer retention. We also have the opportunity to optimize our customer and market penetration as we enhance our footprint and strategic approach to winning large accounts and sales efforts. Clearly, we are excited about our business and the significant opportunities ahead.

我們顯著改善了與客戶的溝通以及主動滿足他們需求的能力。這些努力加上對員工的投資旨在提高客戶留任率。隨著我們增強我們的足跡和策略方法來贏得大客戶和銷售工作，我們還有機會優化我們的客戶和市場滲透率。顯然，我們對我們的業務和未來的重大機會感到興奮。

Our enthusiasm mirror mirrors the meaningful growth and profitability we have achieved through Q2 and our progress towards becoming one BrightView. While there is more to do, I am proud of the team's effort and increasingly confident in our ability to deliver value to our shareholders.

我們的熱情反映了我們在第二季度取得的有意義的成長和獲利能力，以及我們在成為 BrightView 的過程中所取得的進展。儘管還有更多工作要做，但我為團隊的努力感到自豪，並對我們為股東創造價值的能力越來越有信心。

With that, I'll turn it over to Brett, who will discuss our financial performance and outlook

接下來，我會將其交給布雷特，他將討論我們的財務表現和前景

Thank you, Dale, and good morning to everyone. I'll start on slide 9. I am pleased to report that we are continuing the momentum in our business and progressing with our strategy towards one BrightView, which yielded strong results in the second quarter. We remain focused on the execution of our strategy and profitable growth in our core business, evidenced by the unwinding of an unprofitable non-core aggregator business and the sale of our franchise US lawns business.

謝謝你，戴爾，祝大家早安。我將從幻燈片 9 開始。我們仍然專注於執行我們的策略和核心業務的獲利成長，這從取消無利可圖的非核心聚合業務和出售我們的美國草坪特許業務即可證明。

These actions led to quality revenue, EBITDA growth and significant margin expansion across all segments of the business enhanced net working capital, coupled with the timing of capital investments and reduced interest expense, resulted in a meaningful increase of free cash flow compared to the first half of last year. This resulted in a net leverage ratio of 2.4 times, allowing for financial flexibility for ongoing execution and investment in the core business.

這些行動帶來了高品質的收入、EBITDA 成長和各業務部門利潤率的顯著擴張，增強了淨營運資本，加上資本投資的時機和利息支出的減少，導致自由現金流與上半年相比顯著增加去年的。這導致淨槓桿率為 2.4 倍，為核心業務的持續執行和投資提供了財務靈活性。

Moving to slide 10. Total revenue during the quarter increased 3.5% year over year to $673 million. Our non-core businesses, including BES. and US loans, and our focus on profitable growth within our core land business, both had a near-term impact on our land revenue. We remain, however, very encouraged by the underlying health of the market and recent trends within our business revenue growth during the quarter was driven by higher snowfall relative to the prior year.

轉到投影片 10。我們的非核心業務包括BES。和美國貸款，以及我們對核心土地業務獲利成長的關注，都對我們的土地收入產生了短期影響。然而，我們仍然對市場的基本健康狀況感到非常鼓舞，而本季度我們業務收入成長的最新趨勢是由相對於上一年的降雪量增加所推動的。

Important to note, snow revenue year to date is comparable to the prior year season and at the low end of our original guidance range. We continue to see solid demand or in our development business, which we grew 5.7% compared to the prior year due to our ability to convert our robust backlog developments. Performance in recent quarters reflects the appealing nature of the business model while also furthering the momentum for future growth. As we capitalize on cross-selling into maintenance.

值得注意的是，今年迄今為止的雪收入與去年季節相當，處於我們最初指導範圍的低端。我們的開發業務繼續看到強勁的需求，由於我們有能力轉化強勁的積壓開發項目，因此我們的開發業務比上一年增長了 5.7%。最近幾季的業績反映了該業務模式的吸引力，同時也進一步增強了未來成長的動力。當我們利用交叉銷售進行維護時。

Turning now to profitability and the details on slide 11. Total adjusted EBITDA for the second quarter was $64.8 million, an increase of $18 million or 39% versus the prior year and significant margin expansion of 240 basis points, reflecting continued benefits of our ONE BrightView initiatives and improved profitability in all segments of the business.

現在轉向投影片11 上的獲利能力和詳細資料。 BrightView 的持續優勢措施並提高了所有業務部門的獲利能力。

In the maintenance segment, total adjusted EBITDA of $66.5 million was an increase of $15 million or 29% compared to the prior year. This increase was driven by improved profitability in our core land maintenance business and increased snowfall compared to the prior year. But adjusted EBITDA margin expanded an impressive 260 basis points due to the revenue growth and a more streamlined operating structure in the Development segment.

在維修部門，調整後 EBITDA 總額為 6,650 萬美元，比前一年增加了 1,500 萬美元，即 29%。這一增長是由於我們核心土地維護業務的盈利能力提高以及降雪量較上年增加所致。但由於開發部門的營收成長和更精簡的營運結構，調整後的 EBITDA 利潤率成長了 260 個基點，令人印象深刻。

Adjusted EBITDA for the second quarter was $14.4 million, an increase of 10% compared to the prior year, and adjusted EBITDA margins expanded 40 basis points. This is a result of a quality backlog conversion while simultaneously reducing our costs ultimately resulting in accretive growth. And in our corporate segment, corporate expenses for the second quarter decreased year over year as we made further progress with our one BrightView strategy, we continue to evaluate opportunities for centralization, which we expect to lead to further efficiencies.

第二季調整後 EBITDA 為 1,440 萬美元，較上年成長 10%，調整後 EBITDA 利潤率擴大 40 個基點。這是高品質積壓訂單轉換的結果，同時降低了我們的成本，最終帶來了增值成長。在我們的企業部門，隨著我們的 BrightView 策略取得進一步進展，第二季的企業支出將年減，我們繼續評估集中化的機會，我們預計這將進一步提高效率。

Turning to slide 12 to discuss the unwinding of our aggregator business. As we mentioned on our previous earnings call, our aggregator business, also known as BES. is a noncore unprofitable sub-contractor business. This business was originally set up to outsource work to local providers in markets where BrightView was unable to provide direct service.

轉向投影片 12，討論我們聚合器業務的剝離。正如我們在先前的財報電話會議上提到的，我們的聚合器業務，也稱為 BES。是一項非核心、不營利的分包商業務。該業務最初設立的目的是將工作外包給 BrightView 無法提供直接服務的市場中的本地提供者。

However, our ability to control and maintain service levels was limited as a result and aligned with our goal of one BrightView, we are in the process of unwinding the majority of the contracts within this business. We will, however, retain a few select relationships of high quality customers where we can self-perform the majority of the work directly from our branch network.

然而，我們控制和維護服務水準的能力因此受到限制，並且與我們的 One BrightView 目標一致，我們正在解除該業務中的大部分合約。然而，我們將保留一些優質客戶的精選關係，我們可以直接從我們的分公司網絡自行執行大部分工作。

While the unwinding of this business will have an impact on revenue, it's important to note this unwind will have no impact to our EBITDA. In fact, we anticipate an annualized EBITDA margin benefit of approximately 20 basis points from this strategic decision. This action reinforces our commitment to one BrightView, enhancing customer service and improving our position as a service provider of choice.

雖然該業務的撤銷將對收入產生影響，但值得注意的是，該業務的撤銷不會對我們的 EBITDA 產生影響。事實上，我們預期這項策略決策的年化 EBITDA 利潤率將提高約 20 個基點。這項行動強化了我們對 One BrightView 的承諾，增強了客戶服務並提高了我們作為首選服務提供者的地位。

Let's now turn to slide 13 to review our free cash flow, capital expenditures and leverage for the first half. We are extremely pleased with our free cash flow generation of $89 million compared to $16 million in the prior year. It's important to note we are committed to reinvesting in our fleet strategy and our capital expense reduction is purely timing related. More to come on this on the next slide.

現在讓我們轉向幻燈片 13，回顧我們上半年的自由現金流、資本支出和槓桿率。我們對自由現金流達到 8,900 萬美元感到非常滿意，而前一年為 1,600 萬美元。值得注意的是，我們致力於對我們的機隊策略進行再投資，而我們的資本支出削減純粹與時間相關。下一張投影片將介紹更多內容。

Net leverage for the quarter came in at 2.4 times compared to 5.0 times in the prior year period. This lower leverage reflects the significant reduction in our debt, improved liquidity and improved profitability in the business. Our leverage profile allows us for financial flexibility for ongoing execution of our profitable growth strategy and investments in the US.

本季淨槓桿率為 2.4 倍，而去年同期為 5.0 倍。槓桿率的降低反映了我們債務的大幅減少、流動性的改善以及業務盈利能力的提高。我們的槓桿狀況使我們能夠保持財務靈活性，以便持續執行我們在美國的獲利成長策略和投資。

Moving to slide 14. With our enhanced profitability and strengthened balance sheet, we have the financial flexibility to invest in the business and execute our growth strategy. One of our top priorities for reinvesting in the business is upgrading our fleet and equipment. To facilitate this change. We recently hired two central leaders to further unlock leveraging the size and scale of the organization.

轉到投影片 14。我們對業務進行再投資的首要任務之一是升級我們的機隊和設備。為了促進這項改變。我們最近聘請了兩位核心領導者，以進一步發揮組織規模和規模的作用。

We aim to rejuvenate our fleet, optimize asset life cycles, enhance our overall brand and continue to take better care of our employees. This capital deployment will directly benefit our employees and customers while also yielding financial advantages by reducing future maintenance and rental costs. It's important to note that we do not anticipate this changing our long-term net CapEx outlook of approximately 3.5% of revenue as the higher residuals will offset the gross increase in investments.

我們的目標是振興我們的機隊，優化資產生命週期，提升我們的整體品牌，並繼續更好地照顧我們的員工。這種資本部署將直接使我們的員工和客戶受益，同時也透過減少未來的維護和租賃成本來產生財務優勢。值得注意的是，我們預計這不會改變我們約佔收入 3.5% 的長期淨資本支出前景，因為較高的殘差將抵消投資總額的成長。

Now let's turn to slide 15 to review our outlook for fiscal '24. As Dale previously mentioned, we are reaffirming our fiscal year '24 EBITDA midpoint and raising our margin and free cash flow guidance.

現在讓我們轉向投影片 15 來回顧我們對 24 財年的展望。正如戴爾之前提到的，我們重申了 24 財年的 EBITDA 中點，並提高了我們的利潤率和自由現金流指引。

Now let's hit on some of the details. We are updating our revenue range to $2.74 to $2.8 billion to primarily reflect the BTS unwind and snow coming in at the low end of our original guidance range. The updated revenue guidance assumes the following the unwinding of VES and the previously announced sale of US loans is expected to have an approximately $70 million impact on revenue for the year for snow.

現在讓我們來討論一些細節。我們將收入範圍更新為 27.4 至 28 億美元，主要反映 BTS 的放鬆和降雪處於我們最初指導範圍的低端。更新後的收入指引假設，隨著 VES 的解除以及先前宣布的美國貸款出售，預計將對今年的雪收入產生約 7000 萬美元的影響。

Now that snow season is complete, we are incorporating revenue of $215 million, which is within but at the low end of our original guidance range. And for development, we are maintaining our assumption of 2% to 5% growth for the year as the conversion of our strong backlog of projects will continue to benefit revenue growth for core land.

現在雪季已經結束，我們的收入為 2.15 億美元，雖然在我們最初指導範圍的低端之內。在開發方面，我們維持今年 2% 至 5% 成長的假設，因為大量積壓項目的轉換將繼續有利於核心土地的收入成長。

We are refining this to the lower end of our original guidance range as we focus on profitable growth. And in regards to acquisitions, we are now assuming zero versus minimal in our previous guidance as we focus on streamlining our operating structure and ensuring stability for acquisitions in the future.

由於我們專注於獲利成長，因此我們正在將其細化至原始指導範圍的下限。在收購方面，我們現在在先前的指導中假設為零而不是最小，因為我們專注於精簡我們的營運結構並確保未來收購的穩定性。

Moving to adjusted EBITDA, one, BrightView will be the key driver to growing profit and expanding margins. Despite adjusting our revenue guidance and despite no revenue at the low end of our original range. We are maintaining the midpoint of our EBITDA guidance, which in turn translates to raising our margin expansion expectations. We expect these improvements to now generate total margin expansion of 90 to 130 basis points, with adjusted EBITDA of $315 to $335 million.

談到調整後的 EBITDA，其一，BrightView 將成為利潤成長和利潤率擴大的關鍵驅動力。儘管調整了我們的收入指導，並且儘管沒有收入處於我們最初範圍的低端。我們維持 EBITDA 指引的中點不變，這反過來又意味著提高我們的利潤率擴張預期。我們預計這些改進現在將使總利潤率擴大 90 至 130 個基點，調整後 EBITDA 為 315 至 3.35 億美元。

We expect the continuation of healthy cash flow generation driven by improved operating performance. Our outlook reflects our commitment to growth and investment in our core business. Contributions from reduced interest expense will be managed alongside the ongoing requirements to optimize the business altogether, we now expect to generate free cash flow of $55 to $75 million, which is an increase to the previously provided guidance range.

我們預計，在經營績效改善的推動下，現金流將持續保持健康。我們的前景反映了我們對核心業務成長和投資的承諾。利息費用減少帶來的貢獻將與持續優化業務的要求一起進行管理，我們現在預計將產生 55 至 7500 萬美元的自由現金流，這比之前提供的指導範圍有所增加。

Before I hand the call back over to Dale, I want to wrap up on Slide 16. I want to reiterate my excitement around the investments we are making and the impact it has had on business and our culture by taking better care of our employees. So in turn, are taking better care of our customers. I feel more optimistic than ever regarding the future of our company.

在將電話轉回戴爾之前，我想總結幻燈片 16。反過來，我們也會更好地照顧我們的客戶。我對我們公司的未來比以往任何時候都更加樂觀。

With that, let me now turn the call back to Dale to wrap up on slide 17.

現在，讓我將電話轉回 Dale，以在投影片 17 上進行總結。

Thank you, Brett. Before we open the call for questions, I'd like to provide a few final thoughts. We are making considerable progress on our goals, and we are seeing the returns on these efforts begin to materialize. In the results and gain traction across the Company. I firmly believe that all the strategic changes we are making to transform this business position us to accelerate profitable growth over the long term and create value for all of our stakeholders.

謝謝你，布雷特。在我們開始提問之前，我想提供一些最後的想法。我們在目標上取得了長足的進展，我們看到這些努力的回報開始顯現。在結果中獲得整個公司的關注。我堅信，我們為實現業務轉型而進行的所有策略變革使我們能夠加速長期獲利成長，並為所有利害關係人創造價值。

With that said, operator, you can now open the call for questions.

話雖如此，接線員，您現在可以開始提問。

Thank you. We will now begin today's Q&A session. (Operator Instructions)

謝謝。我們現在開始今天的問答環節。 （操作員說明）

Bob Labick, CJS Securities.

拉比克 (Bob Labick)，CJS 證券公司。

Good morning and congratulations on a nice quarter.

早上好，恭喜您度過了美好的季度。

Thanks, Bob.

謝謝，鮑伯。

So I wanted to start off, obviously it makes sense to us the unwind of the BES. business. But for those of us with a history of BrightView and maybe prior management, can you talk about how this is different than when prior management said they are walking away from unprofitable business, but we never saw any it results in margin accretion or anything like that. How do you break this out? How do you how is this different than the past?

所以我想開始，顯然 BES 的放鬆對我們來說是有意義的。商業。但對於我們這些有BrightView 歷史的人，也許還有以前的管理層，您能談談這與以前的管理層表示他們正在放棄無利可圖的業務有什麼不同，但我們從未看到它會導致利潤增加或類似的情況。你如何解決這個問題？你覺得這跟過去有何不同？

Yes, that's a great question, Bob. I'll start off and then I'll kick it over to Brett. So first, we're doing today's call from our branch in Amherst, New York in are still in OI. And there's no better way to start today than to go out and spend time with our hourly employees to do stretch and flex as they go to leave our branch to service our customers.

是的，這是一個很好的問題，鮑伯。我先開始，然後把它交給布雷特。首先，我們今天從紐約州阿默斯特的分行撥打電話，目前仍處於 OI 狀態。從今天開始，沒有什麼比出去花時間與我們的小時工一起在離開我們的分支機構為客戶服務時做伸展運動更好的方法了。

That's what's key in our business is using our employees to service our customers. But unfortunately, what had happened with that aggregator business is we were using our brand, our reputation on quality of service and actually not doing the work leading different providers, all over the country, use our name to actually service the customer that will may disappoint the customer. It turned out.

我們業務的關鍵是利用我們的員工為客戶提供服務。但不幸的是，聚合商業務所發生的事情是，我們使用我們的品牌、我們在服務品質方面的聲譽，但實際上並沒有領導全國各地的不同供應商，使用我們的名字來實際為客戶提供服務，這可能會令人失望客戶。結果是。

The customer would think BrightView was the one underperforming the service. So what's different about what this aggregator business, the choice to deemphasize and the past is this is just unique enough that we said we don't want to be a provider of service where we can't control the end service to the customer. In the past when the Company made the decision that we wanted to walk away from unprofitable business, that's not our goal our goal here is to find a way to make any business.

客戶會認為 BrightView 的服務表現不佳。那麼，這個聚合器業務的不同之處在於，選擇不再強調和過去的不同之處在於，它非常獨特，我們說我們不想成為一個無法控制向客戶提供的最終服務的服務提供者。過去，當公司決定放棄無利可圖的業務時，這不是我們的目標，我們的目標是找到一種開展任何業務的方法。

We have profitable work with our branches to drive profitability through the business. This aggregated business was completely different. It was known about us being able to do things better to service the customer. That was completely about us just trying to get a small margin off service. Somebody else was providing in order to build a period until our name, our reputation was being damaged. But I hope that gives you a high level, and I'll let Brett and he can probably give you some details of what we're talking about as far as the volume of the walkaway that we're going to do in this business about how I would just I would just add to that?

我們與分公司進行獲利性合作，以透過業務提高獲利能力。這種聚合業務完全不同。眾所周知，我們能夠做得更好，為客戶提供服務。這完全是因為我們只是想從服務中獲得一小部分利潤。其他人提供資金是為了建立一個時期，直到我們的名字、我們的聲譽受到損害。但我希望這能給你一個高水平，我會讓布雷特和他可能給你一些我們正在談論的細節，就我們將在這項業務中做的走走的數量而言我該如何添加呢？

I think Dale said it well, I would just add to that the the aggregator business different from the past, as you see, we're adjusting our revenue guidance with the majority really being the unwind of our of our aggregator business and snow at the low end of the range, really the two main pieces of the revenue guide change, but the big difference in the past. I think what you're seeing here is we're reaffirming our EBITDA guidance at $325 million at the midpoint, and we're raising margin expectations.

我認為戴爾說得很好，我只想補充一點，聚合器業務與過去不同，正如你所看到的，我們正在調整我們的收入指導，其中大部分實際上是我們聚合器業務的放鬆和雪低端範圍確實是收入指南變化的兩個主要部分，但與過去的差異很大。我認為您在這裡看到的是，我們重申 EBITDA 指引為中位數 3.25 億美元，我們正在提高利潤率預期。

I think when you when we go back and play old tapes in the past, there was strategies to maybe exit accounts that didn't come with profit accretion and margin accretion I think that's really where you're seeing the big difference here in our in this strategy is that you're seeing the profit dollars and you're seeing the margin come along with that so, but we're really excited about the future of the business, what our core self-perform network of branches is going to be able to produce and unwinding this non-core business, which had a impact on our brand reputation in the market. It's definitely the right move for the Company.

我認為，當您過去播放舊磁帶時，可能會採取退出帳戶的策略，但這些帳戶不會帶來利潤增加和利潤增加，我認為這確實是您在我們的業務中看到的巨大差異的地方。對我們在市場上的品牌聲譽產生了影響。這對公司來說絕對是正確的舉動。

And important to note really comes with very minimal to no EBITDA impact to the Company. So but we feel great about that decision. So we're really up through the unwind at this point. We're able to update guidance for the rest of this year as you can see in our new guidance issued on page 15 of the earnings deck and really the biggest piece of our revenue. The change in guidance is the unwind of this aggregator business, which So call it about $70 million and you couple that with the sale of the US loans business.

值得注意的是，這對公司的 EBITDA 影響非常小甚至沒有。所以我們對這個決定感覺很好。所以我們現在已經完全放鬆了。我們能夠更新今年剩餘時間的指導，正如您在收益表第 15 頁上發布的新指導中看到的那樣，這確實是我們收入的最大部分。指導方針的變化是該聚合業務的放鬆，所謂的價值約為 7000 萬美元，再加上美國貸款業務的出售。

Okay, great. That's a great explanation, really appreciate that. And segues well into my next question to obviously, you've mentioned you reiterated that our midpoint of EBITDA guidance. Frankly, you're exciting beginning of a transformation here. If you hit $325 in EBITDA this year or five years at or below? Yes, $300, I think it's a home. And so maybe you can just kind of help us think through this and the coming years in terms of the key drivers for that.

好的，太好了。這是一個很好的解釋，非常感謝。顯然，您提到您重申了我們的 EBITDA 指導的中點，這很好地延續到我的下一個問題。坦白說，你是這裡變革的令人興奮的開始。如果今年或五年內您的 EBITDA 達到 325 美元或更低？是的，300美元，我認為這是一個家。因此，也許您可以幫助我們思考當前和未來幾年的關鍵驅動因素。

Finally, getting to EBITDA growth, how much of it is cost cuts, rightsizing the organization? And is that sooner? And then how much. You've talked about a lot of operational and cultural changes. When does that start driving the bottom line growth and margin accretion?

最後，談到 EBITDA 成長，其中有多少是成本削減、組織規模調整？那是不是更早？然後是多少。您談到了很多營運和文化變革。這什麼時候開始推動利潤成長和利潤增加？

Yes, yes, great to great question, Bob. I think we are so proud of what will be a breakthrough year for us. On the EBITDA front, you're right, this business has hovered around the $300 million level. And this year at the midpoint of $325, it will definitely be a transformation. Now short term, we're getting a lot of that benefit as we lean out the organization to remove layers so that our people can service our customers better. I think we all can understand that long term, our focus is going to be on growing this business.

是的，是的，鮑勃，這是一個非常好的問題。我認為我們對這將是突破性的一年感到非常自豪。在 EBITDA 方面，你是對的，這項業務一直徘徊在 3 億美元左右。而今年在 325 美元的中點，這肯定會是一個轉變。現在短期來看，我們正在獲得許多好處，因為我們精簡了組織，消除了層級，以便我們的員工能夠更好地為客戶服務。我想我們都可以理解，從長遠來看，我們的重點將是發展這項業務。

So we've seen some changes over the last six months, but we are going to focus on continuing to invest in our sales force so we can actually get back on the growth engine because that is the way we will grow this business. We have some headwinds, some new amount of revenue that we're trimming off from BES., the aggregator model.

因此，我們在過去六個月中看到了一些變化，但我們將專注於繼續投資我們的銷售隊伍，以便我們能夠真正恢復成長引擎，因為這就是我們發展這項業務的方式。我們遇到了一些阻力，我們正在從聚合器模型 BES 中削減一些新的收入。

But long term, we're going to grow the bottom line by growing the top line, but doing it profitably not chasing revenue by having an organization structure where our branch managers can work with our sales organization to target, which accounts make the most sense sense to build out route density for our teams so that we can service our customers at a lower cost.

但從長遠來看，我們將透過增加營收來增加利潤，但要透過建立一個組織結構來實現盈利，而不是追逐收入，在這個組織結構中，我們的分公司經理可以與我們的銷售組織合作，以實現哪些客戶最有意義的目標為我們的團隊建立路線密度是有意義的，以便我們能夠以更低的成本為客戶提供服務。

So long term it requires all of our team at our branches working together to make sure we drive profitable growth. So short term, yes, cost saves will drive a lot of the benefit long term, it's going to come from growing together as a company growing with the right accounts profitably.

從長遠來看，這需要我們分支機構的所有團隊共同努力，以確保我們推動獲利成長。因此，從短期來看，成本節省將帶來許多長期效益，這將來自於一家公司與正確的客戶一起成長，以實現獲利。

Brett, if you want to add anything to this,

布雷特，如果你想補充什麼，

I know, Bob, we're really excited that we had a great second quarter results when it comes to EBITDA and EBITDA margin expansion. We're not guiding quarterly anymore, but to the first half of the year, you know, we've had great results. We grew EBITDA $16 million, grew margins over 100 basis points. So we feel great for the first six months results of this of this year. We feel like the back half of the year is set up to have fiscal '24 a breakthrough year for BrightView.

我知道，鮑勃，我們真的很高興我們在 EBITDA 和 EBITDA 利潤率擴張方面取得了出色的第二季度業績。我們不再按季度提供指導，但到今年上半年，我們取得了很好的成果。我們的 EBITDA 成長了 1,600 萬美元，利潤率成長了 100 個基點以上。因此，我們對今年前六個月的業績感到非常滿意。我們認為，今年下半年的 24 財年將成為 BrightView 突破性的一年。

And then as Gale mentioned, we get through the first half of '25. As we step over the unwind of our BES. aggregator business, we step over the sale of the U.S. bonds business. We feel that we'll be off and running in the second half of next year through that profitable accretive growth.

然後正如 Gale 所提到的，我們度過了 25 年上半年。當我們跨過 BES 的放鬆。聚合商業務，我們超越了美國債券的出售業務。我們認為，透過獲利的成長，我們將在明年下半年開始運作。

Okay, super. Appreciate that, and I'll jump back in queue. Let others ask questions. Thank you.

好吧，超級。謝謝你，我會插回隊列。讓其他人提問。謝謝。

Tim Mulrooney, William Blair.

提姆·馬爾魯尼，威廉·布萊爾。

Yes, good morning. Thanks for taking my questions. So two quick ones. The a lot of change going on. So the slide 6 to me was the most interesting slide of the deck and really highlighting the operational changes that you're making in the business. My question is on that top box, the four divisions and the legacy structure that you've eliminated. Can you just dig into this a little bit more? What was it that you eliminated that you're doing differently now versus before it's really helping to add value to the business?

是的，早安。感謝您回答我的問題。所以兩個快點。很多變化正在發生。因此，對我來說，幻燈片 6 是整套幻燈片中最有趣的幻燈片，它真正突出了您在業務中所做的營運變革。我的問題是關於那個頂盒、四個部門以及你們已經消除的遺留結構。能再深入研究一下嗎？與以前相比，您現在的做法有所不同，您消除了哪些真正有助於增加業務價值的內容？

Yes, Tim, great. Great question, Heather. And the way I look at it is traditionally the business was operated in four divisions. Those divisions one was our development division that was solely focused on development and new were of a landscape. The other three were one was seasonal, which is the northern climates, we had a market that was or a division that was focused on evergreen West and Evergreen East. So those were more in the non slow snow climates.

是的，提姆，太棒了。好問題，希瑟。我的看法是，傳統上該業務由四個部門經營。這些部門之一是我們的開發部門，該部門僅專注於開發，而新部門則具有景觀性。另外三個是季節性的，即北方氣候，我們有一個市場或一個部門，專注於常綠西部和常綠東部。所以這些更多是在非慢雪氣候下發生的。

The challenge, Tim was we were operating each one of those businesses independently and a lot of the things that we should benefit as a company of our size and scale weren't happening based on having those four independent divisions. In fact, we weren't even leveraging the expertise we had in our development business to migrate that into new maintenance revenue.

提姆，我們面臨的挑戰是，我們獨立經營每一項業務，而作為一家如此規模的公司，我們應該受益的許多事情並沒有因為擁有這四個獨立部門而發生。事實上，我們甚至沒有利用我們在開發業務中擁有的專業知識將其轉化為新的維護收入。

We've taken one of those resources is now our Chief Commercial Officer. We've eliminated that layer, and we're utilizing our regional people who now manage our branch managers from development and maintenance to work together across geographies in the country, which is creating a big improvement in our go to market to service our customers. Traditionally, we had silos in this business where people were trying to manage for the best of their P&L.

我們已經採取了這些資源之一，現在是我們的首席商務官。我們已經消除了這一層，我們正在利用我們的區域人員，他們現在管理我們的分公司經理，從開發到維護，在全國各地進行合作，這在我們進入市場為客戶提供服務方面取得了巨大的進步。傳統上，我們在這個行業中存在著孤島，人們試圖透過管理來實現最佳的損益。

And that's focused on what's best for the overall company and by doing that, putting the customer first. So removing that top layer really allows us to step back and say, We're going to run this as a $2.8 billion business, not as four independent businesses located across the country, and we're using that lower below at our regional leaders that now manage both maintenance and development locations geographically as a way to get people to work better together. So eliminating that layer has been our first step to trying to get more people closer to the customer and trying to get more people working together as one BrightView. That's a great question.

我們的重點是對整個公司最有利的事情，並透過這樣做將客戶放在第一位。因此，刪除頂層確實讓我們可以退後一步說，我們將把它作為一家價值28 億美元的企業來運營，而不是作為遍布全國的四家獨立企業來運營，我們在我們的區域領導者中使用這一層現在，在地理位置上管理維護和開發地點，作為讓人們更好地合作的一種方式。因此，消除這一層是我們努力讓更多人更接近客戶並讓更多人作為一個 BrightView 一起工作的第一步。這是一個很好的問題。

It looks like some of the boxes below that as well. Some of these changes that you're making are all kind of along that same kind of mindset, getting everyone to work together, whether our sales and operations have been integrated into the same branch or ticket, both siloed specialty businesses and integrating them into the branches. Is that the right way to think about a lot of these transformational organizational changes is just bringing everyone together under one roof. So it's less siloed and focused on the customer.

它看起來也像下面的一些盒子。您所做的一些改變都是沿著同樣的心態，讓每個人一起工作，無論我們的銷售和運營是否已整合到同一個分支機構或票務中，無論是孤立的專業業務，還是將它們整合到分支機構。思考許多這些變革性組織變革的正確方法是將每個人聚集在一個屋簷下嗎？因此，它不再是孤立的，而是以客戶為中心。

Exactly, Tim, that is a great way to look at it. We have to take all the services we can provide as BrightView will allow us to provide services to our customer as a unified front to the customer. The customer has to leverage everything we do. We're a top 50 construction company with our development group. We have a wonderful tree division. We have golf course specialties. We have a turf division.

確實，蒂姆，這是一個很好的看待它的方式。我們必須利用我們可以提供的所有服務，因為 BrightView 將使我們能夠作為客戶的統一戰線向客戶提供服務。客戶必須利用我們所做的一切。我們的開發團隊是 50 強建築公司。我們有一個很棒的樹形劃分。我們有高爾夫球場特色。我們有一個草坪部門。

We have to make sure that all of our branches can leverage all of those resources to service our customers, removing those silos where people were operating independently enables us to just go to market with the customer and motivate us to grow faster by giving the customer, the ability to get all the services from us. So yes, that's a great way to look at it. This is all about our ability for our customers to leverage everything. We do better and be able to grow faster with us by working with BrightView and having one partner versus we have to rely on multiple different companies.

我們必須確保我們所有的分支機構都可以利用所有這些資源來服務我們的客戶，消除人們獨立運營的那些孤島，使我們能夠與客戶一起進入市場，並透過為客戶提供，激勵我們更快地成長，能夠從我們這裡獲得所有服務。所以，是的，這是一個很好的看待它的方式。這完全取決於我們為客戶提供利用一切的能力。透過與 BrightView 合作並擁有一個合作夥伴，我們可以做得更好，並且能夠與我們一起更快地成長，而我們必須依賴多家不同的公司。

Sounds like a lot of change, but also sounds very exciting. So good luck with that, and thank you for taking my questions, and thanks, Tim.

聽起來變化很大，但也聽起來非常令人興奮。祝你好運，謝謝你回答我的問題，謝謝提姆。

Thanks, Tim.

謝謝，蒂姆。

George Tong, Goldman Sachs.

喬治唐，高盛。

Good morning. I wanted to drill in further into the core land revenue performance. So excluding any impact from the aggregator business online in the US launch divestiture, an updated full year guide is for the core land business revenue to be down two to down one. Previously it was down two to up two.

早安.我想進一步深入了解核心土地收入表現。因此，排除美國線上聚合業務剝離帶來的任何影響，更新後的全年指南預計核心土地業務收入將下降二至一。此前，該指數下跌了兩點，而上漲了兩點。

And can you just revisit what are the factors that led to the core business having a bit of a slower revenue performance for the full year and done where you are in your process on rightsizing your portfolio of contracts and making sure all the contracts in the core land maintenance business are economic and profitable?

您能否重新審視一下導致核心業務全年收入表現略有下降的因素，並在調整合約組合規模並確保核心業務中的所有合約的過程中完成了哪些工作？ ？

Yes, Greg, I'll start it off, George, and then I'll kick it over to Brett. So we obviously the biggest adjustment to our revenue that we put in our guidance was from the aggregator business, and there is a slight adjustment that's coming from our core business that comes from two factors. First is a adjustment in the ancillary revenue and some of that is from last year's hurricane benefit that we had for the first two quarters.

是的，格雷格，我先開始，喬治，然後我會把它交給布雷特。因此，顯然，我們在指導中對收入進行的最大調整來自聚合器業務，而我們的核心業務也有輕微的調整，這來自兩個因素。首先是輔助收入的調整，其中一些來自我們前兩個季度去年的颶風收益。

And the second is, as we continue to work through our core customer base to make sure we're doing everything we can to provide levels of service that they're happy with. Unfortunately, when you look at the business today, our levels of retention are below where they were when the Company went public. So our goal is to find a way to get that retention level back up to those levels.

第二個是，我們將繼續與我們的核心客戶群合作，確保我們盡一切努力提供他們滿意的服務水準。不幸的是，當你看看今天的業務時，我們的保留水平低於公司上市時的水平。因此，我們的目標是找到一種方法，使保留水準恢復到這些水準。

We are not trying to eliminate customers. That's not our goal. Our goal is to increase the service levels that we have for customers and find a way to service them better. We are not trying to walk away from business. We made a strategic decision on the aggregator business based on our brand reputation, but our goal is to find a way to service every customer we have today and find a way to get growing back again in 2025. So we're working hard and we've got to get our teams focused on putting that customer first because that's our next step to making sure we can grow this business on both the top line and the bottom line as we go into '25.

我們並不是想消滅客戶。那不是我們的目標。我們的目標是提高為客戶提供的服務水平，並找到更好的方法來為他們提供服務。我們並不是想放棄業務。我們根據我們的品牌聲譽對聚合商業務做出了策略決策，但我們的目標是找到一種方法來服務我們今天擁有的每一位客戶，並找到一種方法在2025 年再次成長。努力工作，我們必須讓我們的團隊專注於將客戶放在第一位，因為這是我們的下一步，以確保我們在進入 25 年後能夠在營收和利潤上實現業務成長。

Yes, George, I would just add just for clarity and the change in the guide, you know, at the midpoint of our previous guide, which we really came out with at the end of Q4, and we discuss the unwinding potential of our aggregator business. Keep in mind, we are in the middle of our snow season for the aggregator business, and we didn't want to disrupt any current customers. And we said we'd give an update on this call.

是的，喬治，我只是為了清楚起見以及指南中的更改而添加，您知道，在我們上一份指南的中點，我們確實在第四季度末發布了該指南，並且我們討論了聚合器的解除潛力商業。請記住，我們正處於聚合器業務的雪季中期，我們不想打擾任何現有客戶。我們說過我們會更新這次電話會議的最新情況。

But if you think about the midpoint of our guide at $2.9 billion when we first came out this year to the adjusted midpoint now of $2.770 billion, it's about $130 million adjustment, $70 million of that is that aggregator business, US lawn sale, which is the biggest portion of the guide adjustments, $45 million of it is simply no midpoint of $240. So coming up to $215, that's another $25 million and in the previous guy, we had minimal M&A.

但如果你想想我們今年首次發佈時指南的中點為29 億美元，現在調整後的中點為27.7 億美元，調整幅度約為1.3 億美元，其中7000 萬美元是聚合業務，即美國草坪銷售，指導調整的最大部分是 4500 萬美元，這根本不是 240 美元的中點。因此，達到 215 美元後，又增加了 2500 萬美元，而在上一個例子中，我們的併購最少。

Now we're saying for the rest of this year, we'll have no M&A. So call it another $10 to 15 million or so out of $130 million revenue adjustment at the midpoint, $110 million of those three factors, which really leaves you with call it [8] to [10] additional per quarter for that core land.

現在我們說今年剩下的時間裡，我們不會進行併購。因此，在中間1.3 億美元的收入調整中，再增加10 到1500 萬美元左右，這三個因素的1.1 億美元，這實際上讓你可以為該核心土地每季度額外增加[8] 到[10 ] 美元。

And I think Tim asked the question last from William Blair about the operating structure. And I think that correlates to where we are in our journey back to sustainable profitable growth. We said on previous calls that this organization on a quarterly basis was was growing at that at the sake of really anything to grow and that's not the way we're positioning this Company moving forward.

我認為提姆最後問了威廉布萊爾關於營運結構的問題。我認為這與我們回歸可持續獲利成長的歷程有關。我們在之前的電話會議上說過，該組織每季都在成長，實際上是為了實現任何成長，但這不是我們定位公司前進的方式。

We've realigned our sales force into our branches. We've set up our operating structure now are leaders in our geographical markets. Are both managing maintenance and development. And you think about the long-term potential of those things that we've done. I mean, it's just so significant. And we're in the early journey of this of this change, right? We just announced the operating structure, which is about 90 days old, right? So that's going to take a little bit of time to gain traction.

我們已將銷售隊伍重新調整到各分公司。我們現在已經建立了我們的營運結構，成為我們所在地區市場的領導者。兩者都在管理維護和開發。你會想到我們所做的事情的長期潛力。我的意思是，這非常重要。我們正處於這項變革的早期階段，對吧？我們剛剛公佈了營運結構，大約已經有 90 天了，對吧？因此，這需要一點時間才能獲得吸引力。

So that's really the difference between the back half of the land core guide. It's not that we see anything systemic in the business. We actually see quite the opposite. We see strong ancillary demand in the back half of this year. We see big opportunities in our contract business. We see even bigger opportunities, George, when it comes to cross-selling development into maintenance, which is really an untapped potential today.

這就是陸地核心指南後半部的差別。這並不是說我們在業務中看到了任何系統性的東西。我們實際上看到的恰恰相反。我們預計今年下半年輔助需求強勁。我們在合約業務中看到了巨大的機會。喬治，當談到交叉銷售開發到維護時，我們看到了更大的機會，這在今天確實是一個尚未開發的潛力。

So as you think about the guy changes, but the majority was not tied to this core land piece. And as you think about the future for this company as we get through the first half of next year and step over some of this CES. unwind and US lawn sale, you step over that and get to the second half of next year. That's really when this operating structure will have a year under its belt. And we expect big things from a land organic growth from that point forward.

所以當你想到這些人的變化時，但大多數都與這個核心土地無關。當你思考這家公司的未來時，我們已經度過了明年上半年並跨越了 CES 的一些環節。放鬆和美國草坪銷售，你跨過它並進入明年下半年。到那時，這個營運結構將真正發揮作用一年。我們預計從那時起，土地有機成長將取得重大成果。

Got it. That's very helpful. And then sticking with the core land business and as you look forward to next year and the second half of this year, low single digit declines in the core side, but next year, presumably that swings too growth. Can you talk about expectations of how that plays out from a cadence perspective next year and then perhaps structurally in the marketplace, how easy is it to grow profitably in order to how easy is it to compete on price or to win contracts that have good economics in a relatively competitive environment?

知道了。這非常有幫助。然後堅持核心土地業務，當你展望明年和今年下半年時，核心業務會出現低個位數的下降，但明年，大概會出現成長。您能否談談明年從節奏角度以及市場結構角度對這一情況如何發揮的預期，實現盈利增長有多容易，以便在價格上競爭或贏得具有良好經濟效益的合約有多容易在相對競爭的環境中？

So let me start at a high level charge. So we're not going to give guidance for next year. We'll do that come the end of the year. I think we'll get some headwinds. The first and second quarter, call it $10 million from the BES. business. But here's what I can tell you. We don't lose business because of price. That's the most optimistic thing I can tell you, unfortunately, where we fall down and the customer decides to leave us, it's usually because of lack of communication for quality of service.

讓我從高水準開始。因此，我們不會為明年提供指導。我們將在今年年底做到這一點。我認為我們會遇到一些阻力。第一季和第二季度，我們稱之為 BES 的 1000 萬美元。商業。但這是我可以告訴你的。我們不會因為價格而失去生意。這是我能告訴你的最樂觀的事情，不幸的是，當我們失敗並且客戶決定離開我們時，通常是因為缺乏服務品質的溝通。

Those are two things I can make sure the team fixes, and that's what I'm committed to. And those eight geographic leaders are focused on what we can control at better communication with our customers and making sure those people that leave the gates every morning are focused on servicing the customer. That's the way we're going to return to growth.

這是我可以確保團隊解決的兩件事，這也是我所致力於的。這八位地區領導者專注於我們可以控制的事情，以便更好地與客戶溝通，並確保那些每天早上離開大門的人專注於為客戶提供服務。這就是我們恢復成長的方式。

We can't trying to outrun customers that decide to leave us because we're not taking care of our path to profitable growth starts with retaining more of our business. And that's where we're going to focus now, we've seen a minor improvement in that, but nowhere near the levels that we need to be when I travel when I'm out of the branches and I'm at a branch that has 90% to 95% retention. They are growing and they're growing profitably.

我們不能試圖超越那些決定離開我們的客戶，因為我們沒有專注於我們的獲利成長之路始於保留更多的業務。這就是我們現在要關注的地方，我們已經看到了這方面的微小改進，但遠未達到我們在離開分行並且在分行時需要達到的水平保留率為 90% 至 95%。他們正在成長，並且正在獲利。

And when I go to a branch whose retentions far below that they are not growing. They're struggling just to keep up with new accounts. So it's a simple business. When you think about take care of the customers you have and then find new customers that fill in the existing routes that you have, that you can service and make it more profitable.

當我去一個其留存率遠低於該水平的分支機構時，他們就沒有成長。他們只是在努力跟上新客戶的腳步。所以這是一件簡單的事。當您考慮照顧您擁有的客戶時，然後尋找新客戶來填補您現有的路線，您可以為這些客戶提供服務並使其獲得更多利潤。

So this isn't something that we need to worry about. We've got to get price benefit or we can't get price unless we've got to figure out a way to take care of our existing customers and communicate a lot better to them in a listen when they have an issue. So that's our future higher retention and continue to focus on new sales.

所以這不是我們需要擔心的事情。我們必須獲得價格優勢，否則我們就無法獲得價格，除非我們必須找到一種方法來照顧我們現有的客戶，並在他們遇到問題時更好地傾聽他們的溝通。這就是我們未來更高的保留率並繼續關注新的銷售。

Yes. Very helpful. Thank you.

是的。很有幫助。謝謝。

Thanks, George.

謝謝，喬治。

Greg Palm, Craig-Hallum Capital Group.

帕爾姆（Greg Palm），克雷格-哈勒姆資本集團。

Yes, morning. Thanks for taking the questions here. I appreciate all the info in the deck. I wanted to also touch on one of the slides, Page 14 on this kind of CapEx plan. So net CapEx over the coming years doesn't change a whole lot, but you're reinvesting a lot of money into the fleet. So I think you mentioned, but presumably you're going to save a lot of money on maintenance rental costs. Seems like a no-brainer. Can you can you quantify it for us? Can you give us some color on what you hope to save in the coming years? And, you know, I guess, is there sort of a time line when things really start to ramp up?

是的，早上。感謝您在這裡提出問題。我很欣賞甲板上的所有資訊。我還想談談其中一張投影片，第 14 頁，關於這種資本支出計畫。因此，未來幾年的淨資本支出不會發生太大變化，但您將大量資金重新投資到機隊中。所以我想你有提到過，但想必你會在維護租賃費用上節省很多錢。看起來是理所當然的。您能為我們量化一下嗎？您能否告訴我們您希望在未來幾年節省什麼？而且，你知道，我猜，事情真正開始加速時是否有一個時間線？

Yes. Greg, great question, Greg. So first on the data this morning, but I think the way for us finished off his section was very fitting. It's new borrowers, new trucks, happy employees, happy employees and happy customers this morning when I was at the gate watching the trucks roll out with the crews, you can see the smile on the guys faces when they have a new model or a new truck.

是的。格雷格，好問題，格雷格。首先是今天早上的數據，但我認為我們完成他的部分的方式非常合適。今天早上，當我在門口看著卡車和工作人員一起推出時，這是新的借款人、新的卡車、快樂的員工、快樂的員工和快樂的顧客，你可以看到當他們擁有新車型或新產品時他們臉上的笑容卡車。

So I think that as a byproduct and then there's the benefit of the cost savings that we're going to see. We can't have mowers that are four and five years old that we're trying to maintain to keep things going. This is equipment that our people depend on to service our customers. We're going to keep our mowers two years and then we're going to remove a modest service and sell as a byproduct. You're right today we're spending far too much on maintenance for both our two cycle equipment, our mowers and the trucks that we're servicing let alone.

因此，我認為作為副產品，我們將看到節省成本的好處。我們不能擁有已經使用了四到五年的割草機，我們試圖維護它們以保持運作。這是我們的員工為客戶提供服務所依賴的設備。我們將把割草機保留兩年，然後我們將取消一項適度的服務並作為副產品出售。你是對的，今天我們在兩輪設備、割草機和我們正在維修的卡車的維護上花費了太多的錢，更不用說了。

We also have the image when we go out to a customer site in our equipment isn't the newest out there. We want people to work for BrightView to see that as a privilege to work here, not as just a job. If you want to talk about qualitative, we spent far too much our rental last year and by sharing our fleet across this company, we think there's significant opportunity to improve that last year we spent part around $15 million on rental, so we can get better at probably not eliminate all of it, but we can get better.

當我們去客戶現場時，我們也會看到我們的設備不是最新的。我們希望為 BrightView 工作的人們將其視為在這裡工作的特權，而不僅僅是一份工作。如果你想談論質量，去年我們在租金上花費了太多，並且通過在整個公司共享我們的車隊，我們認為有很大的機會來改進去年我們在租金上花費了大約1500 萬美元的部分，所以我們可以變得更好可能無法消除所有這些，但我們可以做得更好。

Last year. We also spent a significant amount on maintenance, which will always have to do preventive maintenance on fleet. But it was a much bigger number than we should have because of the age of our fleet. So last year, I think we spent around $40 million on maintenance. So maybe we can get rid of half that over time. It's not all going to come overnight. We've got to take the fleet. We have this far past its useful life and get it to a much healthier age.

去年。我們也花費了大量的維護費用，總是需要對機隊進行預防性維護。但由於我們機隊的年齡，這個數字比我們應有的要大得多。去年，我認為我們在維護上花費了大約 4000 萬美元。所以也許隨著時間的推移我們可以擺脫一半。這一切不會在一夜之間實現。我們必須奪取艦隊。我們已經過了它的使用壽命，並讓它進入一個更健康的年齡。

But I'll tell you the transformation I've seen with Brett and his team finding creative ways to transition from our old days of buying equipment and keeping it as long as humanly possible and then disposing of it for nothing. So the strategy that Brett talked about has been remarkable in the two leaders we brought in to help us focus on procurement and fleet management are going to help us drive this strategy these benefits won't necessarily come in 2024 and 2025.

但我會告訴你我所看到的轉變，布雷特和他的團隊找到了創造性的方法，從我們過去購買設備並儘可能長時間地保留它然後無償處置它的時代過渡。因此，布雷特談到的策略在我們聘請來幫助我們專注於採購和車隊管理的兩位領導人中非常出色，這將幫助我們推動這一戰略，但這些好處不一定會在2024 年和2025 年出現。

But I can assure you if we execute this strategy over the next three to five years, we will see benefit as we get three, four, five years out, that will start ticking through the P&L on both the maintenance and on the lack of rental leads and on our employee satisfaction. Brad, do you want to add anything?

但我可以向你保證，如果我們在未來三到五年內執行這項策略，我們將在三、四年、五年後看到收益，這將開始在維護和租金不足的損益表上體現。和我們的員工滿意度。布拉德，你想補充什麼嗎？

Yes, I would just add that, you know, given the financial flexibility we have in our balance sheet right now, we're in such a good position to reinvest back into our employees and reinvest back into our our people, which will in turn take care of our customers, right?

是的，我想補充一點，你知道，考慮到我們目前資產負債表中的財務靈活性，我們處於一個很好的位置，可以重新投資於我們的員工並重新投資於我們的員工，這反過來又會照顧我們的客戶，對嗎？

I think I did wrap up with new boots, new trucks, new mowers. And that's really you spend time with the brands like we are today. You folks drive out a brand new truck with brand new mowers on the back of new safety issues on I mean, it's a culture change that is happening in the Company is hard to quantify, but it will have a quantifiable impact on the P&L at some point in time and where our balance sheet and cash flow generation, we're going to invest almost double the amount of CapEx we did last year and still generate $55 to $75 million of free cash flow, which is an increase to our previously provided range.

我想我確實穿上了新靴子、新卡車、新割草機。這確實是你花時間與像我們今天這樣的品牌相處的時間。你們在新的安全問題的背後開出了一輛配備了全新割草機的全新卡車，我的意思是，這是公司正在發生的文化變革，很難量化，但它將在某些方面對損益產生可量化的影響在我們的資產負債表和現金流產生的時間點上，我們將投資幾乎是去年資本支出兩倍的資金，但仍會產生55 至7500 萬美元的自由現金流，這比我們之前提供的範圍有所增加。

We feel great about our ability, given our balance sheet to execute this strategy and to offset it all happened in fiscal '24, fiscal '25. Right now, we're getting about $0.08 to $0.1 residual on equipment. We sell that number should be far greater as we get into the future as the chart kind of illustrates on page 14.

考慮到我們的資產負債表執行此策略並抵消 24 財年和 25 財年發生的一切，我們對自己的能力感到非常滿意。目前，我們的設備剩餘費用約為 0.08 至 0.1 美元。正如第 14 頁的圖表所示，隨著我們進入未來，這個數字應該會更大。

Yes, that's interesting color and makes lot of sense. I guess it kind of ties in with my my next question, I mean, zero get nice margin boost call this year with the unwind of BES., you'll have maybe a little bit of benefit next year, but how do you think about continued outsized margin improvements outside of that? Like what are the levers and maybe this saving on maintenance rental costs is probably part of it but what are the levers to increase in that margin, whether it's 100 basis points annually or something different, but getting back to that close to 13% EBITDA margin, it does the Company achieved in prior years and hopefully eventually get in somewhere past that?

是的，這是有趣的顏色並且很有意義。我想這與我的下一個問題有關，我的意思是，隨著 BES 的解除，今年零獲得了不錯的利潤提升電話。率是否繼續大幅提高？就像槓桿是什麼，也許維護租賃成本的節省可能是其中的一部分，但是增加利潤率的槓桿是什麼，無論是每年 100 個基點還是其他什麼，但回到接近 13% 的 EBITDA 利潤率，公司在前幾年取得了哪些成就，希望最終能超越這個目標？

Yes, Greg. So Greg, one way to think about it is the VES unwind is going to have about a 20 basis points improvement on our margin. So we are going to improve margins on our business this year by, like you said, roughly 100 basis points. If you look at the midpoint of our guide right now, it's at 11.7% EBITDA margin this year, that's a 110 basis point improvement. We have still have significant opportunity to continue to centralize or working on different functions that have to leverage the size and scale of our building of our business like procurement, we have to find a way to leverage all the spend that we have to better buy it across the whole organization.

是的，格雷格。格雷格（Greg），一種思考方式是，VES 放鬆將使我們的利潤率提高約 20 個基點。因此，正如您所說，今年我們的業務利潤率將提高約 100 個基點。如果您現在查看我們指南的中點，今年的 EBITDA 利潤率為 11.7%，即提高了 110 個基點。我們仍然有很大的機會繼續集中或致力於不同的職能，這些職能必須利用我們業務建設的規模和規模，例如採購，我們必須找到一種方法來利用我們必須更好地購買的所有支出貫穿整個組織。

And when we when we answered Tim's question about the four unique divisions we had unfortunately, you can guess they were all buying somewhat independently. We weren't doing enough centrally. We have so much opportunity to continue to centralize so we can leverage the size and the scale of the business. I like what you're born with. I like the 100 basis point that I remind, Brett, that number every year that that should be our goal.

當我們回答蒂姆關於我們不幸擁有的四個獨特部門的問題時，你可以猜到他們都是在某種程度上獨立購買的。我們在集中化方面做得還不夠。我們有很多機會繼續集中化，這樣我們就可以利用業務的規模和規模。我喜歡你與生俱來的特質。我喜歡 100 個基點，我每年都會提醒這個數字，這應該是我們的目標。

And I firmly believe there is no reason with our size that we should not run this business in a normal market with mid-teen EBITDA margins. So yes, last year's (inaudible) was far below what it should have been many reasons that got us there. But you've seen the actions we've started and taken today to lean out the organization and we're going to continue to find ways to reduce costs so we can drive for that annual margin improvement like you're thinking, Brett,

我堅信，以我們的規模，我們沒有理由不以 EBITDA 利潤率在正常市場上經營這項業務。所以，是的，去年的（聽不清楚）遠低於應有的水平，原因有很多。但你已經看到了我們今天為精簡組織而開始和採取的行動，我們將繼續尋找降低成本的方法，以便我們能夠像你所想的那樣推動年度利潤率的提高，布雷特，

What I think I was just below just reiterate you know, great. First half of the year, Greg, as you can see from our margin improvement, we're over 100 basis points in the first half. We're guiding to basically a similar number in the second half, another 100 basis points in the second half between both quarters and the outlook, as Dan mentioned, and as we've talked a few times, we the change we've undergone over the last seven months, there's more change to come more positive change to come, and we're at the early innings of that change. And the impact is going to have in the organizations as you think about next year, you think about the following year?

我想我剛才在下面重申一下，你知道，太好了。今年上半年，格雷格，正如你從我們的利潤率改善中看到的那樣，上半年我們的利潤率超過了 100 個基點。我們預計下半年的數字基本上相似，下半年兩個季度和前景之間又各有 100 個基點，正如丹提到的那樣，正如我們已經談過幾次的那樣，我們已經經歷了變化在過去的七個月裡，將會有更多的變化，更多積極的變化即將到來，而我們正處於這種變化的早期階段。當您考慮明年時，這將對組織產生影響，您考慮下一年嗎？

Yes, there's definitely more margin. I would say to be had as you think about getting back to that IPO levels, which is called the 12.5% range this year, we're essentially halfway back. We'd be at 11%, 11.5% to [11 nine] of our guidance range. And then as Dan mentioned, you know, that kind of 100 basis points a year goals would get us back next year to that IPO level about 12.5%, 12.8% net rate.

是的，肯定有更多的利潤。我想說的是，當你考慮回到 IPO 水平（今年稱為 12.5% 的範圍）時，我們基本上已經回到了一半。我們將處於指導範圍的 11%、11.5% 至 [11 九]。然後，正如 Dan 所提到的，你知道，每年 100 個基點的目標將使我們明年回到 IPO 水平，即 12.5%、12.8% 的淨利率。

So again, we're not providing guidance for next year, specifically for '25, but we feel really good about the margin expansion opportunities especially when we get that sustainable growth engine going in the back half of next year. And we start this development conversions in the maintenance projects, that's untapped opportunity we have today that will just drive accretive margins.

再說一次，我們不會提供明年的指導，特別是 25 年的指導，但我們對利潤擴張機會感到非常滿意，特別是當我們在明年下半年獲得可持續成長引擎時。我們在維護項目中開始這種開發轉換，這是我們今天擁有的未開發的機會，只會推動利潤的成長。

All right. I will leave it there. Best of luck. Thanks. It varies right.

好的。我會把它留在那裡。祝你好運。謝謝。它的變化是正確的。

(Operator Instructions)

（操作員說明）

Stephanie Moore, Jefferies.

史蒂芬妮·摩爾，杰弗里斯。

Hi, this is Han Hoffman on for Stephanie. More balm. No, just wanted to touch a bit on sort of M&A. Obviously, you guys removed it from the guy, but just given your net leverage is in a much healthier position today, I'm just curious when you think that sort of comes back into the picture and as you sort of evaluate acquisition targets. I know like the strategy has changed a bit versus prior years. I'm just kind of curious what are you guys looking for in acquisitions.

大家好，我是史蒂芬妮的漢霍夫曼。更加潤澤。不，只是想談併購。顯然，你們把它從這個人身上刪除了，但考慮到你們今天的淨槓桿率處於更健康的位置，我只是很好奇，當你們認為這種情況又回到了畫面中，並且當你們評估收購目標時。我知道與前幾年相比，該策略發生了一些變化。我只是有點好奇你們在收購中尋找什麼。

Yes. Look, a good question. Obviously, we're in a much better financial position than if we wanted to deploy our precious capital that way we could. But I think as you can see on Slide 6 of the deck, we've had significant operational changes in our organization. I want to make sure we absorb all those changes and get our teams working together. Cohesively so that when we bring an acquisition in, we can be a better owner of that acquisition.

是的。瞧，這是一個好問題。顯然，與我們想以這種方式部署寶貴資本相比，我們的財務狀況要好得多。但我認為，正如您在投影片 6 上看到的那樣，我們的組織在營運方面發生了重大變化。我想確保我們吸收所有這些變化並讓我們的團隊一起工作。團結一致，以便當我們進行收購時，我們可以成為該收購的更好所有者。

I don't think that's long periods away, but it's probably not going to occur over the next two quarters. But I firmly believe accretive M&A is a way for us to grow this business, but we have to be a better owner. We have to make sure when we bring an asset in, we can help it grow faster and operate more efficiently than what it does today.

我認為這不會持續很長時間，但在接下來的兩個季度內可能不會發生。但我堅信，增值併購是我們發展這項業務的一種方式，但我們必須成為更好的所有者。我們必須確保，當我們引入一項資產時，我們可以幫助它比現在更快地成長、更有效率地運作。

That capital that we choose to deploy through M&A is precious and we've talked about all the investments we're making with trucks with mowers with and boots for our employees. Those are all things that are creating a cultural shift in this company. So we're going to bring somebody in. They've got to match our culture. They kind of want to be here, and we've got to be willing to invest in that business. And then by leveraging all the services, we've talked about turf irrigation tree.

我們選擇透過併購部署的資本是寶貴的，我們已經討論了我們對帶有割草機和員工靴子的卡車進行的所有投資。這些都是在這家公司創造文化轉變的事情。所以我們要引進一些人。他們有點想來這裡，我們必須願意投資這項業務。然後，透過利用所有服務，我們討論了草坪灌溉樹。

Hopefully, when we bring their customers and we can be a better owner and help them grow faster. So I will tell you we will be targeting M&A in 2025 just because we said we paused it for this year, but we've gone through tremendous change. I mentioned to somebody 70% of our employees have a new boss right now, and that's a change in some of the people didn't know their new boss. So let us absorb that.

希望當我們帶來他們的客戶時，我們可以成為更好的所有者並幫助他們更快地成長。所以我會告訴你，我們的目標是在 2025 年進行併購，只是因為我們說過今年暫停了併購，但我們已經經歷了巨大的變化。我向某人提到我們 70% 的員工現在有了新老闆，這是一些人不認識他們的新老闆的變化。讓我們吸收這一點。

Let us get our feet under us, and we'll do M&A. I'm a firm believer in M&A. When it's done right, it can create great value. When it's done wrong, it's wasted capital. So we're going to do it and we're going to do it right? We have a big pipeline where I'm going to focus M&A because I'm going to focus it on our core maintenance contract business, small business, as we've all seen, it's very unpredictable.

讓我們站穩腳跟，我們將進行併購。我堅信併購。如果做得好，它可以創造巨大的價值。如果做錯了，那就是資本的浪費。那我們要做這件事，而且我們會做對嗎？我們有一個很大的管道，我將專注於併購，因為我將把重點放在我們的核心維護合約業務、小型業務上，正如我們都看到的那樣，這是非常不可預測的。

I'm glad when we get to know I'm glad when our employees can service customers with snow, but where I'm going to put our energy for future M&A is going to be focused on the maintenance contract business across North America. And we have a lot of states today. We're not into so if I can find M&A in new states that I can help our teams grow into and then accelerate growth, that's a great opportunity for us. So yes, probably not like we said zero M&A in the back half of the year. But in 2025, when we give you guys guide, we'll give you an update of what we're thinking about with a high level on M&A.

當我們認識時我很高興當我們的員工可以用雪為客戶提供服務時我很高興，但我將把未來併購的精力集中在整個北美的維護合約業務上。今天我們有很多州。我們不喜歡這樣，如果我能在新的州找到併購，我可以幫助我們的團隊成長，然後加速成長，這對我們來說是一個很好的機會。所以，是的，可能不像我們下半年所說的零併購。但到 2025 年，當我們為你們提供指南時，我們將向你們提供我們在高水平併購方面的最新想法。

Got it. That's helpful. And then just kind of curious on the cross-sell of development into mail. Is there any particular reason that that opportunity wasn't pursued in prior years? And then just sort of any thoughts around, you know, your initiatives retention back to where you were pre IPO. If you could just sort of unpack that a bit more?

知道了。這很有幫助。然後只是對郵件開發的交叉銷售感到好奇。前幾年沒有抓住這個機會有什麼特殊原因嗎？然後，圍繞著你知道的任何想法，你的計劃保留回到首次公開募股前的狀態。如果你能再把它拆開一點嗎？

Yes, let's let's start with the development and maintenance. Look, I think, you know, like anything when the compensation system motivates people to do what's right for themselves and converting development into maintenance. There's always some warranty work that we have to do. And in all, it's easier not to worry about who's going to pay for the warranty. If it's not going from left pocket right pocket. So I think by putting it under one person that now owns it, they will be able to negotiate that who's going to pay the warranty better than having two independent people that were worried about two different P & L's.

是的，我們先從開發和維護開始。聽著，我想，你知道，就像薪酬制度激勵人們做適合自己的事情並將開發轉變為維護一樣。我們總是需要做一些保固工作。總而言之，不用擔心誰來支付保固費用會更容易。如果不是從左口袋到右口袋。因此，我認為，透過將其交給一個現在擁有它的人，他們將能夠協商誰將支付保固費用，而不是讓兩個獨立的人擔心兩個不同的損益表。

So this is all upside. You heard me say it's untapped opportunity. The developers are different than the people that are going to have the ongoing business. But that doesn't mean we should be getting the level of conversion we have in the past, we should be able to get 70 ish percent of the business that we create every year with our great development team in the new May is to be serviced by our teams. So I think it's unfortunately, it was the structure that we had that created that the best that's work that we can do in the future.

所以這都是有利的。你聽到我說這是一個尚未開發的機會。開發人員與將要開展持續業務的人不同。但這並不意味著我們應該獲得過去的轉換水平，我們應該能夠在新的 5 月為我們出色的開發團隊每年創造的業務提供 70% 左右的服務由我們的團隊。所以我認為不幸的是，正是我們現有的結構創造了我們未來可以做的最好的工作。

And what was the second part of your question?

你問題的第二部分是什麼？

Retention, customer retention. So yes, sir.

保留，客戶保留。所以是的，先生。

Yes. So customer retention, but it's near and dear to my heart, it pains me when I hear people saying that our focus is to not service our customers like we don't want to have the customers we have today. There is no customer bid cost less to acquire the one we already have today. It is our job to find a way to service those customers and make sure they're getting the value for what they're paying for. Let us do that. We can't just throw our challenges on our customers all the time.

是的。因此，保留客戶，但這對我來說很重要，當我聽到人們說我們的重點是不為我們的客戶提供服務，就像我們不想擁有今天的客戶一樣，這讓我很痛苦。購買我們今天已有的產品，沒有比顧客的出價成本更低的了。我們的工作就是找到一種方法來為這些客戶提供服務，並確保他們物有所值。讓我們這樣做吧。我們不能總是把挑戰拋給我們的客戶。

Our retention today is below where it was five years ago. I am going to improve that. I am creating a culture where those people that leave our gates in the morning to go out and service the customers. There are the ones that can make the change every positive letter I get from a customer. They talk about the crew that's doing the work at their facility. Those crews are critical in customer retention and then communicate, communicate, communicate.

我們今天的留存率低於五年前。我將改進這一點。我正在創造一種文化，讓那些早上離開大門的人出去為顧客服務。有些人可以讓我從客戶收到的每封正面的來信帶來改變。他們談論在他們的工廠工作的工作人員。這些工作人員對於保留客戶以及溝通、溝通、再溝通至關重要。

We can't let our customers ever be surprised that you heard me mention we have an AI tool now where last year when we ran the AI. tool over our customers that left us, 87% of them were predicted that they were going to leave us. If I can get that information into my branch managers hands, they can go out and sit down and trying to prevent those customers from leave it. We have everything we need to solve our own problems on retention. And it is a way that the more we retain the faster we can grow this business. Our customers are valuable. They pay our bills. They have to be the center of every single thing we do, and that's our focus, and that's what we're going to focus on this year.

當您聽到我提到我們現在有一個人工智慧工具（去年我們運行人工智慧時）時，我們不能讓我們的客戶感到驚訝。我們對離開我們的客戶進行了調查，其中 87% 的人預計他們將離開我們。如果我可以將這些資訊交到我的分行經理手中，他們就可以出去坐下來，試圖阻止這些客戶離開。我們擁有解決我們自己的保留問題所需的一切。透過這種方式，我們保留的人越多，我們的業務發展就越快。我們的客戶很有價值。他們支付我們的帳單。它們必須成為我們所做的每一件事的中心，這是我們的重點，也是我們今年要關注的重點。

And '25. And until I get every branch someday at that 95% that I go to my best branches and see, I'll never be happy because when I see a fully engaged branch manager. He has that level of retention. I know the power that this business can have. Great question.

還有'25。直到有一天我去最好的分行看看每個分行的使用率都達到 95%，否則我永遠不會高興，因為當我看到一位全心投入的分行經理時。他有這樣的保留水平。我知道這項業務可以擁有的力量。很好的問題。

Got it. Thanks.

知道了。謝謝。

That concludes the Q&A portion of today's call. I now hand back over to Dale Ben for closing remarks.

今天電話會議的問答部分到此結束。我現在請戴爾本 (Dale Ben) 致閉幕詞。

Thank you, operator. As you can tell, we are extremely excited about the opportunities ahead, and I'm thrilled to be leading this great company through this important period. Our objectives are clear. We are committed to becoming one BrightView growing profitably and creating meaningful shareholder value. With that, I thank everybody for joining our call today. Operator, you may now end the call.

謝謝你，接線生。如您所知，我們對未來的機會感到非常興奮，我很高興能夠領導這家偉大的公司度過這個重要時期。我們的目標很明確。我們致力於成為不斷成長利潤並創造有意義的股東價值的 BrightView 之一。在此，我感謝大家今天加入我們的電話會議。接線員，您現在可以結束通話了。

Thank you. That concludes today's call. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。