信達思 (CTAS) 2024 Q1 法說會逐字稿

Good day, everyone, and welcome to the Cintas Corporation Announces Fiscal 2024 First Quarter Earnings Release Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Jared Mattingley, Vice President, Treasurer and Investor Relations. Please go ahead, sir.

大家好，歡迎參加 Cintas Corporation 宣布的 2024 財年第一季財報發布電話會議。今天的通話正在錄音。現在，我想將電話轉給財務主管和投資者關係副總裁 Jared Mattingley 先生。請繼續，先生。

Thank you for joining us. With me is Todd Schneider, President and Chief Executive Officer; and Mike Hansen, Executive Vice President and Chief Financial Officer, who will discuss our fiscal 2024 first quarter results. After our commentary, we will open the call to questions from analysts.

感謝您加入我們。與我在一起的是總裁兼執行長 Todd Schneider；執行副總裁兼財務長 Mike Hansen 將討論我們 2024 財年第一季的表現。在我們的評論之後，我們將開始接受分析師提問。

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those we may discuss. I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. I'll now turn the call over to Todd.

1995 年《私人證券訴訟改革法案》為前瞻性聲明提供了避免民事訴訟的安全港。本次電話會議包含前瞻性陳述，反映了公司目前對未來事件和財務表現的看法。這些前瞻性陳述存在風險和不確定性，可能導致實際結果與我們可能討論的結果有重大差異。我建議您參閱我們最近向美國證券交易委員會提交的文件中有關這些觀點的討論。我現在將把電話轉給托德。

Thank you, Jared. We are pleased with our start to fiscal year 2024. First quarter total revenue grew 8.1% to $2.34 billion. Each of our businesses continue to execute at a high level. The benefits of our strong volume growth and revenue flow through to our bottom line. Operating income margin increased 110 basis points to an all-time high of 21.4%, and diluted EPS grew 9.1% to $3.70.

謝謝你，賈里德。我們對 2024 財年的開局感到滿意。第一季總營收成長 8.1%，達到 23.4 億美元。我們的每項業務都繼續保持高水準執行。我們強勁的銷售成長和營收成長所帶來的好處最終體現在我們的利潤上。營業利潤率成長 110 個基點，達到 21.4% 的歷史新高，稀釋後每股收益成長 9.1%，達到 3.70 美元。

I thank our employees, whom we call partners, for their continued focus on our customers, our shareholders and each other. Uniform Rental and Facility Services operating segment revenue for the first quarter of fiscal '24 was $1.83 billion compared to $1.7 billion last year. Their organic revenue growth rate was 7.6%.

我感謝我們的員工（我們稱之為合作夥伴），感謝他們對我們的客戶、股東和彼此的持續關注。 24 財年第一季統一租賃和設施服務營運部門的收入為 18.3 億美元，而去年為 17 億美元。他們的有機收入成長率為 7.6%。

While price increases moved near historical levels, revenue growth continues to be driven mostly from increased volume. Our sales force continues to add new customers and penetrate and cross-sell our existing customer base. Businesses prioritize all we provide, including image, safety, cleanliness and compliance.

儘管價格上漲接近歷史水平，但收入成長仍主要來自銷售增加。我們的銷售團隊不斷增加新客戶，並滲透和交叉銷售我們現有的客戶群。企業優先考慮我們提供的一切，包括形象、安全、清潔和合規性。

Our First Aid and Safety Services operating segment revenue for the first quarter was $260.7 million compared to $234.2 million last year. The organic revenue growth rate was 11%. Our value proposition continues to resonate in our First Aid and Safety Services operating segment. Health and safety of employees remains top of mind.

我們第一季的急救和安全服務營運部門收入為 2.607 億美元，而去年為 2.342 億美元。有機收入成長率為11%。我們的價值主張繼續在我們的急救和安全服務營運部門引起共鳴。員工的健康和安全仍然是首要考慮因素。

We provide businesses with access to quick and effective products and services that promote health and well-being in the workplace. Our Fire Protection Services and Uniform Direct Sale businesses are reported in the All Other segment. All Other revenue was $254.8 million compared to $234.5 million last year.

我們為企業提供快速有效的產品和服務，以促進工作場所的健康和福祉。我們的消防服務和統一直銷業務在所有其他部門中報告。所有其他收入為 2.548 億美元，而去年為 2.345 億美元。

The Fire business revenue was $174.3 million, and their organic revenue growth rate was 14.2%. The Uniform Direct Sale business revenue was [$80.5 million,] which was down 2.7% organically compared to last year. Now before I turn the call over to Mike to provide details of our first quarter results, I'll provide our updated financial expectations for our fiscal year.

消防業務收入為 1.743 億美元，有機收入成長率為 14.2%。統一直銷業務收入為 [8,050 萬美元]，與去年相比有機下降 2.7%。現在，在我將電話轉給麥克以提供我們第一季業績的詳細資訊之前，我將提供我們對本財年的最新財務預期。

We are increasing our financial guidance. We are raising our annual revenue expectations from a range of $9.35 billion to $9.5 billion to a range of $9.4 billion to $9.52 billion, a total growth rate of 6.6% to 8%. Also, we are raising our annual diluted EPS expectations from a range of $13.85 to $14.35 to a range of $14 to $14.45, a growth rate of 7.8% to 11.2%. Mike?

我們正在增加我們的財務指導。我們將年收入預期從 93.5 億美元至 95 億美元上調至 94 億美元至 95.2 億美元，總成長率為 6.6% 至 8%。此外，我們還將年度攤薄每股收益預期從 13.85 美元至 14.35 美元上調至 14 美元至 14.45 美元，成長率為 7.8% 至 11.2%。麥克風？

Thanks, Todd, and good morning. Our fiscal 2024 first quarter revenue was $2.34 billion compared to $2.17 billion last year. The organic revenue growth rate, adjusted for acquisitions and foreign currency exchange rate fluctuations was 8.1%. Gross margin for the first quarter of fiscal '24 was $1.14 billion compared to $1.03 billion last year, an increase of 11%.

謝謝托德，早安。我們 2024 財年第一季的營收為 23.4 億美元，而去年為 21.7 億美元。經收購和外幣匯率波動調整後的有機收入成長率為 8.1%。 24財年第一季的毛利率為11.4億美元，與去年的10.3億美元相比，成長了11%。

Gross margin as a percent of revenue was an all-time high of 48.7% for the first quarter of fiscal '24, compared to 47.5% last year, an increase of 120 basis points. Strong volume growth and continued operational efficiencies helped generate this record gross margin. Energy expenses comprised of gasoline, natural gas and electricity were a tailwind, decreasing 50 basis points from last year.

2024 財年第一季毛利率佔營收的百分比創歷史新高，達到 48.7%，與去年的 47.5% 相比，成長了 120 個基點。強勁的銷售成長和持續的營運效率幫助創造了創紀錄的毛利率。由汽油、天然氣和電力組成的能源支出是一個推動因素，比去年下降了 50 個基點。

Please keep in mind that some of the energy benefit is the result of efficiencies we've created with our proprietary SmartTruck technology. Certainly, we've also seen a benefit from a drop in prices at the pump compared to a year ago. Gross margin percentage by business was 48.1% for Uniform Rental and Facility Services, 55.9% for First Aid and Safety Services, 49% for Fire Protection Services and 38.7% for Uniform Direct Sale.

請記住，部分能源效益是我們利用專有的 SmartTruck 技術所創造的效率的結果。當然，與一年前相比，我們也看到了加油站價格下降的好處。按業務劃分的毛利率為：制服租賃和設施服務為 48.1%，急救和安全服務為 55.9%，消防服務為 49%，制服直銷為 38.7%。

Operating income of $500.6 million compared to $440.1 million last year. Operating income as a percentage of revenue was 21.4% in the first quarter of fiscal '24 compared to 20.3% in last year's first quarter, an increase of 110 basis points. Our effective tax rate for the first quarter was 19.2% compared to 14.8% last year.

營業收入為 5.006 億美元，去年為 4.401 億美元。 24財年第一季營業收入佔營收的百分比為21.4%，而去年第一季為20.3%，成長了110個基點。我們第一季的有效稅率為 19.2%，而去年為 14.8%。

The tax rates in both quarters were impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation. Net income for the first quarter was $385.1 million compared to $351.7 million last year. This year's first quarter diluted EPS of $3.70 compared to $3.39 last year, an increase of 9.1%. Cash flow remains strong.

兩季的稅率均受到某些​​離散項目的影響，主要是股票薪資的稅務會計影響。第一季淨利為 3.851 億美元，去年同期為 3.517 億美元。今年第一季攤薄後每股收益為 3.70 美元，較去年的 3.39 美元成長 9.1%。現金流依然強勁。

Net cash provided by operating activities in the first quarter grew 13% over the prior year. On September 15, we paid shareholders $138.3 million in quarterly dividends, an increase of 17.8% from the amount paid the previous September. Todd provided our annual financial guidance.

第一季經營活動提供的現金淨額比上年同期成長13%。 9月15日，我們向股東支付了1.383億美元的季度股息，比去年9月支付的金額增加了17.8%。托德提供了我們的年度財務指導。

Related to the guidance, please note the following: fiscal '24 interest expense is expected to be $98 million compared to $109.5 million in fiscal '23, predominantly as a result of lower variable rate debt; our fiscal '24 effective tax rate is expected to be 21.3%. This compares to a rate of 20.4% in fiscal '23.

與指引相關，請注意以下內容： 24 財年利息支出預計為 9,800 萬美元，而 23 財年為 1.095 億美元，主要是由於可變利率債務較低；我們 24 財年的有效稅率預計為 21.3%。相較之下，2023 財年的成長率為 20.4%。

The higher effective tax rate negatively impacts fiscal '24 EPS guidance by about $0.16 and diluted EPS growth by about 120 basis points. Our financial guidance does not include the impact of any future share buybacks. Guidance includes the impact of having one more work day in fiscal '24 compared to fiscal '23. This extra work day comes in our fiscal third quarter. Jared?

較高的有效稅率對 24 財年 EPS 指導產生約 0.16 美元的負面影響，並稀釋 EPS 成長約 120 個基點。我們的財務指導不包括任何未來股票回購的影響。指導意見包括與 23 財年相比，24 財年多一個工作日的影響。這個額外工作日發生在我們的第三財季。賈里德？

That concludes our prepared remarks. Now we are happy to answer questions from the analysts. (Operator Instructions)

我們準備好的演講到此結束。現在我們很高興回答分析師的提問。 （操作員說明）

(Operator Instructions) And our first question comes from Faiza Alwy from Deutsche Bank.

（操作員說明）我們的第一個問題來自德意志銀行的 Faiza Alwy。

I wanted to see if you could provide a bit more color on the new business environment. And if you've noticed any change in terms of the macro environment. Certainly, you guys are talking to your customers every day. So just a bit more perspective around what you're seeing out there in the marketplace.

我想看看您能否為新的商業環境提供更多的色彩。如果您注意到宏觀環境有任何變化。當然，你們每天都在與客戶交談。因此，請對您在市場上看到的東西有更多的了解。

Great. Yes, our new business pipeline is quite good. We love the state of our sales organization, the focus that they have, the scope. And so new business is quite good, and that's a big driver of our growth that you're seeing and we see that continuing. As far as macro environment, it is -- we haven't seen any real change in our customers' behavior, I would say, since we reported last.

偉大的。是的，我們的新業務管道非常好。我們喜歡我們銷售組織的狀態、他們的關注點和範圍。因此，新業務非常好，這是我們成長的一大推動力，您所看到的，我們也看到這種情況持續存在。就宏觀環境而言，我想說，自從我們上次報告以來，我們還沒有看到客戶行為發生任何真正的變化。

So it's pretty consistent with what we have seen over the past few quarters. And we are watching it very, very closely and monitoring it as we move.

因此，這與我們過去幾季所看到的情況非常一致。我們正在非常非常密切地觀察它，並在我們行動時監控它。

Our next question comes from Manav Patnaik from Barclays.

我們的下一個問題來自巴克萊銀行的馬納夫帕特奈克。

I just wanted to see if you could give us a little more color, I think, in terms of the pricing strategy and then also the strong volume growth. So I think you said pricing is back to historical levels. So I'm guessing that's down in that low single-digit camp versus almost every other company talking about still, I guess, pricing higher than above and average. So it just maybe the first question is just how do we think about your pricing strategy here?

我只是想看看你們能否在定價策略以及強勁的銷售成長方面給我們更多的色彩。所以我認為你說定價回到了歷史水平。因此，我猜想，與幾乎所有其他公司談論的定價仍然高於平均水平相比，這個數字在低個位數陣營中有所下降。因此，第一個問題可能是我們如何考慮你們的定價策略？

Yes, it is certainly closer to historical levels, and we like that. That's, we think, appropriate based upon our cost inputs. But we're very proud of the fact that we're growing our business attractively, and we think we can continue this based upon new business being robust and our customer retention levels, being very good as well.

是的，它確實更接近歷史水平，我們喜歡這一點。我們認為，根據我們的成本投入，這是合適的。但我們感到非常自豪的是，我們正在以有吸引力的方式發展我們的業務，我們認為我們可以在新業務強勁和我們的客戶保留水平也非常好的基礎上繼續這一發展。

And we're seeing that in our customer satisfaction scores as well. And then the status of our customers is -- they're continuing on in the operating environment as they have in the past. So we like where we're positioned. We like the momentum in our business, and we like how we're growing it as well, and we think it's -- it bodes well for the future.

我們在客戶滿意度得分中也看到了這一點。然後我們客戶的狀態是－他們繼續像過去一樣使用操作環境。所以我們喜歡我們所處的位置。我們喜歡我們業務的發展勢頭，也喜歡我們發展業務的方式，我們認為這對未來來說是個好兆頭。

Manav, I might just add -- Manav, I might just add to that, you asked about our pricing strategy. And as we've talked in the past, our goal is operating margin improvement, right? And pricing can be a lever within that, but we have other levers. It's not the only way for us to improve margins.

馬納夫，我可能會補充一點——馬納夫，我可能會補充一點，您詢問了我們的定價策略。正如我們過去所說，我們的目標是提高營業利潤率，對嗎？定價可以成為其中的一個槓桿，但我們還有其他槓桿。這不是我們提高利潤率的唯一方法。

And so as we think about the operating margin strategy of increasing, we've got a lot of good things going on. And this is a great quarter that shows where pricing is sort of returning back to that historical level. We still increased margins quite nicely even to record levels. And again, it's just that pricing is a part of that strategy.

因此，當我們考慮增加營業利潤率的策略時，我們發現了很多好事。這是一個很棒的季度，表明定價正在回歸到歷史水平。我們仍然很好地提高了利潤率，甚至達到了創紀錄的水平。再說一遍，定價只是該策略的一部分。

Yes, that make sense. That's quite impressive. And then maybe just on the strong volume growth. Could you just help provide some color on how much of that is new business, cross-selling, maybe share gains? Any color around that?

是的，這是有道理的。這真是令人印象深刻。然後也許只是銷量的強勁增長。您能否幫忙說明其中有多少是新業務、交叉銷售、也許是份額收益？周圍有什麼顏色嗎？

Yes. Good question, Manav. I mean, it's everything. As I mentioned, our new is quite good. Our retention levels, we're very happy with, and we're cross-selling. And we've -- we're continuing to make good progress there. We're never satisfied. But our value proposition is resonating with our customers, and we're trying to make it easier to do business with us through various technologies. And I think it's showing up in our results, and we're again bullish.

是的。好問題，馬納夫。我的意思是，這就是一切。正如我所提到的，我們的新產品非常好。我們對我們的保留水平非常滿意，並且我們正在交叉銷售。我們正在繼續在那裡取得良好進展。我們永遠不會滿足。但我們的價值主張引起了客戶的共鳴，我們正在努力透過各種技術讓與我們開展業務變得更容易。我認為這已經體現在我們的業績中，我們再次看好。

And our next question comes from Josh Chan from UBS.

我們的下一個問題來自瑞銀集團的 Josh Chan。

I guess could I ask about inflation and what you're seeing across your different cost buckets, labor, energy, material? And how you expect that to kind of transpire over the coming quarters as well?

我想我可以問一下通貨膨脹以及您對不同成本類別（勞動力、能源、材料）的看法嗎？您預計這在未來幾季會如何發生？

Yes, I'll start, and Mike wants to chime in as well. Yes, so what we're seeing from an input cost standpoint. Labor is still higher than historical. But to Mike's point earlier, we're finding ways to improve operating margin in that environment still. And part of it is because productivity is quite attractive.

是的，我先開始，麥克也想插話。是的，所以我們從投入成本的角度看到了這一點。勞動力仍然高於歷史水準。但就麥克先前的觀點而言，我們仍在尋找提高這種環境下營業利潤率的方法。部分原因是生產力非常有吸引力。

And we're trying to position our employee partners so that they can be more successful in the marketplace, which is good for them and it's good for ourselves. And obviously, with that retention levels of our employee partners being much back -- very close to historical levels. That's good for our customers as well.

我們正在努力為我們的員工合作夥伴定位，以便他們能夠在市場上取得更大的成功，這對他們和我們自己都有好處。顯然，我們的員工合作夥伴的留任水準已經大大回升——非常接近歷史水準。這對我們的客戶也有好處。

Other input costs, you saw where energy was down year over prior. That is really a Q1 subject because if you recall last year, the price at the pump was very high. And so we got a little bit of a tailwind there. But we think that will be pretty muted through the balance of the fiscal year.

其他投入成本，您會看到能源比前一年下降。這確實是第一季的主題，因為如果你還記得去年的話，加油站的價格非常高。所以我們在那裡得到了一點順風。但我們認為，在本財年的剩餘時間裡，這種情況將相當溫和。

And then last, material costs. Our global supply chain team is doing one heck of a job in trying to make sure that we're well positioned to have very competitive prices and access to all that product. And we've spoken in the past about how a very small percentage of our products are single sourced. So that positions us well as far as having access to product, but also being giving them at very competitive rates.

最後是材料成本。我們的全球供應鏈團隊正在盡全力確保我們處於有利地位，能夠獲得極具競爭力的價格並獲得所有產品。我們過去曾談到我們的產品中有一小部分是單一來源的。因此，我們不僅能夠獲得產品，而且還能以極具競爭力的價格提供產品。

And I guess for my follow-up, could you talk about what your CapEx expectations are this year and kind of the types of projects that you're investing in?

我想在我的後續行動中，您能否談談您今年的資本支出預期以及您投資的項目類型？

Sure. We did see a little bit of an increase in CapEx in Q1. We are -- as we've talked, we are in the midst of implementing SAP for our Fire Protection business and that adds a little bit of CapEx. In the first quarter, we also saw -- over the last couple of years, supply chains, our vendors have had some disruption in their ability to deliver trucks being the best example.

當然。我們確實看到第一季的資本支出略有增加。正如我們所說，我們正在為我們的消防業務實施 SAP，這會增加一點資本支出。在第一季度，我們也看到，在過去的幾年裡，我們的供應商的供應鏈交付卡車的能力受到了一些幹擾，這是最好的例子。

And in the first quarter, we saw a little bit of a catch-up in terms of us receiving more of those trucks. And so we saw a bit of an increase there too in the first quarter. I expect for the year that we're going to likely be right around 4%. Longer term, we still believe 3.5% to 4%. But because of SAP and sort of that catch-up might be a little closer to 4% this year.

在第一季度，我們在接收更多卡車方面看到了一些追趕。因此，我們在第一季也看到了一些成長。我預計今年的成長率可能會在 4% 左右。長期來看，我們仍然相信 3.5% 至 4%。但由於 SAP 等原因，今年的追趕可能會接近 4%。

And our next question comes from Heather Balsky from Bank of America.

我們的下一個問題來自美國銀行的希瑟‧巴爾斯基。

I was hoping, first, you could talk about your exposure to the auto sector and any exposure you may have to, I guess, some of the current disruption? And then two, if you could talk about through the end markets, are there any areas where just in this macro, you're seeing softness and areas where you're seeing strength would be great?

首先，我希望您能談談您對汽車行業的接觸以及您可能需要接觸的任何接觸，我想是當前的一些幹擾？然後兩個，如果你可以透過終端市場來談論，在這個宏觀中，是否有任何領域你會看到疲軟，而你會看到哪些領域會強勁？

Heather. Yes, we're certainly watching what's going on with the auto worker strike, but it is not affecting us in any material way whatsoever. We have a very broad-based customer base. And as a result of that, it's not affecting us to any material degree whatsoever.

希瑟。是的，我們當然正在關注汽車工人罷工的情況，但它並沒有以任何實質方式影響我們。我們擁有非常廣泛的客戶群。因此，它不會對我們產生任​​何實質影響。

And keeping in mind that we have no one customer that's greater than 1% of our revenue and no even sector that's greater than 10% for 3-digit NAICS codes. So that helps us and insulates us a bit from all that. As far as the macro environment, it really -- it varies based upon the sector, geography, whether they're goods producing or services providing. But the labor market is a little easier, but still not easy.

請記住，我們沒有一個客戶的收入占我們收入的 1% 以上，甚至沒有一個行業的 3 位數 NAICS 代碼占我們收入的 10% 以上。所以這對我們有幫助，並使我們免受這一切的影響。就宏觀環境而言，它確實因行業、地理位置而異，無論是生產商品還是提供服務。但勞動市場稍微容易一些，但仍不容易。

And you see that through the -- what we've -- what we're reading with the job openings, still 9.5 million job openings. And that affects our customer base from a standpoint of them trying to attract and retain people. We would love to see those jobs filled because we think that would be really good for our customers and for the economy in general.

你可以透過我們所讀到的職缺資訊看到，仍然有 950 萬個職缺。從他們試圖吸引和留住人才的角度來看，這會影響我們的客戶群。我們希望看到這些工作得到填補，因為我們認為這對我們的客戶和整體經濟來說確實有好處。

And our next question comes from Justin Hauke from RW Baird.

我們的下一個問題來自 RW Baird 的 Justin Hauke。

I wanted to ask about the First Aid margins because it kind of sustainably been higher than they have been historically and really more comparable to the Uniform Rental and the Facility Services segment. And I guess the question is, I mean, for years, that was kind of a scale business where you were building it out and it had lower margins. Are you at the point now where like that business has reached a point where it has very comparable margin sustainably to the Uniform Rental business?

我想問急救利潤率，因為它一直高於歷史水平，而且與制服租賃和設施服務部門更具可比性。我想問題是，我的意思是，多年來，這是一個規模化的業務，你正在建立它，但它的利潤率較低。您現在是否已經達到了與制服租賃業務的利潤率相當的水平？

Yes, we really like the First Aid business. I mean it's -- that it resonates with our customer base. They -- a strong value proposition is helping our revenue growth. The mix has returned closer to historical with First Aid and Safety. And Justin, just like our other businesses, we're using various technologies to extract inefficiencies out of our business.

是的，我們真的很喜歡急救業務。我的意思是它與我們的客戶群產生了共鳴。他們——強大的價值主張正在幫助我們的收入成長。急救和安全的組合更接近歷史。賈斯汀，就像我們的其他業務一樣，我們正在使用各種技術來消除業務效率低下的問題。

And there's certainly no exception to that. I mentioned that our global supply chain team has done -- doing a great job in sourcing product, and we're benefiting from sourcing there. But yes, we see -- certainly, there is -- running a business is not linear. But that being said, we certainly think that gross margins in excess of 50 are sustainable in that business.

當然也不例外。我提到我們的全球供應鏈團隊在產品採購方面做得非常出色，我們也從那裡的採購中受益。但是，是的，我們看到——當然，確實存在——經營企業並不是線性的。但話雖這麼說，我們當然認為該業務的毛利率超過 50 是可持續的。

Okay. Great. And then I guess the last one is kind of more procedural, I guess. But you did -- it looks like on the cash flow about $56 million spending on acquisitions in the quarter, which is a little bit higher than what you guys typically do. Do you have any comments on kind of where that was, where we should see the revenue flow from it?

好的。偉大的。然後我想最後一個是比較程序化的，我想。但你們做到了——從現金流來看，本季的收購支出約為 5,600 萬美元，這比你們通常做的要高一點。您對我們應該從哪裡看到收入流有什麼評論嗎？

Well, I'll start, and Mike can chime in. The -- Justin, as you know, we love leveraging our balance sheet for M&A. And we think it's a great use of cash, and we're very happy with the fact that we were able to deploy some of the cash to leverage that opportunity.

好吧，我先開始，麥克可以插話。賈斯汀，如你所知，我們喜歡利用我們的資產負債表進行併購。我們認為這是對現金的充分利用，我們對能夠部署一些現金來利用這一機會感到非常高興。

And we are acquisitive in all 3 of our operating segments that are route-based. And we made acquisitions in all 3, so -- in Q1. So we're pleased with that, and we think that will -- is a great opportunity for us to bring those customers into the fold, those partners, those employee partners into the fold and provide more value and cross-sell to those customers that are now part of Cintas.

我們對所有 3 個基於航線的營運部門進行了收購。我們在所有 3 個領域都進行了收購，所以——在第一季。因此，我們對此感到滿意，我們認為這對我們來說是一個很好的機會，可以將這些客戶、那些合作夥伴、那些員工合作夥伴納入其中，並為這些客戶提供更多價值和交叉銷售。現在是Cintas 的一部分。

And our next question comes from George Tong from Goldman Sachs.

我們的下一個問題來自高盛的喬治唐。

In the past, you've talked about strong demand from the health care, education and government verticals in driving Uniform Rental's growth. Can you discuss the latest trends you're seeing in these end markets and what's fueling the growth?

過去，您曾談到醫療保健、教育和政府垂直領域的強勁需求推動了 Uniform Rental 的成長。您能討論一下您在這些終端市場看到的最新趨勢以及推動成長的因素嗎？

Yes, those are 3 great verticals for us. I mean, they're 3 great segments of the North American economy. And so, yes, we're still seeing outsized growth in those markets. And as we've chatted about in the past, it's more than just a sales effort. We've organized around them. We've got products for them. We've got technologies for them.

是的，這對我們來說是三個很棒的垂直領域。我的意思是，它們是北美經濟的三個重要部分。因此，是的，我們仍然看到這些市場的大幅成長。正如我們過去討論過的，這不僅僅是銷售工作。我們圍繞著他們組織起來。我們為他們準備了產品。我們為他們提供了技術。

And that is resonating with that customer base. So we think we've chosen them quite well, and there's plenty of runway in all of them. So we're, again, quite bullish on the future of those segments.

這引起了客戶群的共鳴。所以我們認為我們對它們的選擇非常好，而且它們都有足夠的跑道。因此，我們再次非常看好這些細分市場的未來。

Got it. And then with respect to margins, your gross margins expanded 60 bps year-over-year in your Uniform segment. Most of that appears to be driven by lower energy costs. Can you discuss puts and takes around Uniform gross margins in the quarter and opportunities for additional margin expansion over the remainder of this year that comes above and beyond tailwinds you're seeing from lower energy costs?

知道了。然後就利潤率而言，制服部門的毛利率比去年同期增長了 60 個基點。其中大部分似乎是由能源成本下降所推動的。您能否討論一下本季的統一毛利率以及今年剩餘時間內額外利潤擴張的機會，這些機會超出了您從能源成本下降中看到的有利因素？

Yes. George, we're -- the nature of the math around our businesses, the Rental business is obviously a large percentage of it. And we're guiding towards margin expansion for the year. And we do not see energy being a tailwind for the balance of the year.

是的。喬治，從我們業務的數學性質來看，租賃業務顯然佔其中很大一部分。我們正在指導今年的利潤率擴張。我們認為能源不會成為今年剩餘時間的推動因素。

So we expect margin expansion based upon certainly leverage on revenue growth, that's going to be helpful. But we're extracting those inefficiencies out of our business. And as Mike mentioned earlier, we're proud of the fact that pricing is returning back to historical levels, but we're still able to grow operating margin -- gross margin and operating margin at very attractive levels and to levels that are all-time highs. So that's part of our plan. And our team is actually treating at a very high level, and we expect that, that will continue.

因此，我們預期利潤率的擴張肯定會基於收入成長的槓桿作用，這將是有幫助的。但我們正在消除業務中的低效率問題。正如麥克之前提到的，我們對定價回到歷史水平感到自豪，但我們仍然能夠提高營業利潤率——毛利率和營業利潤率處於非常有吸引力的水平，並且達到了所有水平——時間高點。這是我們計劃的一部分。我們的團隊實際上正在以非常高的水平對待，我們預計這種情況將會持續下去。

George, I might just reiterate what I mentioned in the prepared remarks that keeping in mind that the energy benefit that we are getting is partly because we are working really hard at things like our SmartTruck initiative. So in other words, as we continue to grow really nicely with volumes, we don't need to add as many routes and trucks as we have in the past, and that creates then better fuel efficiency, if you will, throughout our network. And so that's a -- it is a proactive initiative to get energy down. And one of those proactive ways is through that SmartTruck technology.

喬治，我可能只是重申我在準備好的發言中提到的內容，請記住，我們獲得的能源效益部分是因為我們在智慧卡車計劃等方面非常努力。換句話說，隨著我們的銷售量繼續快速成長，我們不需要像過去那樣增加更多的路線和卡車，這會在我們的整個網路中創造更好的燃油效率（如果你願意的話）。所以這是一項降低能源消耗的主動措施。其中一種積極主動的方法是透過 SmartTruck 技術。

And Mike, I might add that when we extract those inefficiencies out, that's better for our customers because we're able to spend more time in front of them instead of on the road. It's certainly better for our partners, our employee partners because it makes them that much more productive, and that's good for them and our organization.

麥克，我想補充一點，當我們消除這些低效率的問題時，這對我們的客戶來說更好，因為我們能夠花更多的時間在他們面前，而不是在路上。這對我們的合作夥伴、我們的員工夥伴來說當然更好，因為這使他們的工作效率更高，這對他們和我們的組織都有好處。

And it's really good for the environment. So we think -- let's say there's a lot of boxes checked there, and we've worked hard on that technology over the years, and it's showing up. And it's benefiting not just the P&L in a more simplistic fashion, but in many ways.

這對環境確實有好處。所以我們認為，假設已經檢查了很多方框，多年來我們一直在該技術上努力工作，並且它正在出現。它不僅以更簡單的方式使損益表受益，而且在許多方面都受益。

Our next question comes from Tim Mulrooney from William Blair.

我們的下一個問題來自威廉布萊爾的提姆穆魯尼。

This is Sam Kusswurm on for Tim. I guess I want to start with another health care question here. But as it relates to your health care clients, you've talked a lot about the opportunity here, especially as more no programmers convert. But I guess I'd like to know for those health care operators who already use a service partner, what do you think your penetration rate is? And how might that compare to some of your other customer verticals?

我是山姆·庫斯沃姆 (Sam Kusswurm) 替蒂姆 (Tim) 發言。我想我想從另一個醫療保健問題開始。但由於它與您的醫療保健客戶相關，您已經談論了很多這裡的機會，特別是在沒有程式設計師轉變的情況下。但我想我想知道對於那些已經使用服務合作夥伴的醫療保健運營商來說，您認為您的滲透率是多少？與您的其他一些垂直客戶領域相比如何？

Sam, that's a good question. I don't have that in front of me. But we know this. We're in the early innings with health care. And we're coming up with more products and services that they find attractive. And that's part of our culture. We will enter into a business. But then we get out from behind our desk and we go spend time with our customers.

薩姆，這是個好問題。我面前沒有那個。但我們知道這一點。我們正處於醫療保健的早期階段。我們正在推出更多他們認為有吸引力的產品和服務。這是我們文化的一部分。我們將開展一項業務。但隨後我們會從辦公桌後面走出來，去與客戶共度時光。

And when we find that we find the answers to what they are most interested in by speaking to them, and our customers and our employee partners. And we're hearing from them on various areas where we can help them, and we're taking action there. So again, a very long runway in that vertical, and that's again part of our culture and will be part of how we go to market moving forward.

當我們發現透過與他們、我們的客戶和我們的員工合作夥伴交談時，我們找到了他們最感興趣的問題的答案。我們收到了他們關於我們可以幫助他們的各個領域的意見，我們正在這些領域採取行動。再說一遍，在這個垂直領域有一條很長的跑道，這又是我們文化的一部分，也將成為我們前進的市場方式的一部分。

Got you. Appreciate it. Maybe just another quick one on the margins. I see SG&A as a percentage of sales picked up again in the quarter compared to last year. I guess I'm wondering if there was any variable costs like your insurance expenses? Or if it was mainly some of the selling and branding investments you've talked about previously? Maybe you could just help break that out for us a little more.

明白你了。欣賞它。也許只是邊緣的另一個快速的。我認為與去年相比，本季銷售、管理費用（SG&A）佔銷售額的百分比再次上升。我想我想知道是否有任何可變成本，例如您的保險費用？或者主要是您之前談到的一些銷售和品牌投資？也許你可以幫我們進一步解決這個問題。

Nothing unusual in the quarter. We did see the -- we talked in the fourth quarter about some claims getting higher, but not structural. We saw those come back down to something more normal. But as it relates to the quarter, just some puts and takes, nothing of any significance. Our goal is to continue to leverage particularly the G&A piece of that, and we're going to continue to work at that.

本季沒有什麼異常情況。我們確實看到——我們在第四季度談到了一些索賠上升，但不是結構性的。我們看到這些都回到了更正常的狀態。但就本季而言，只是一些看跌期權和看跌期權，沒有任何意義。我們的目標是繼續利用其中的一般管理費用部分，我們將繼續為此努力。

And our next question comes from Andrew Steinerman from JPMorgan Securities.

我們的下一個問題來自摩根大通證券的安德魯斯坦納曼。

I wanted to talk to you about incremental margins, which were super strong in the quarter and last quarter on a year-over-year basis. I surely know, Cintas historically has targeted 20% to 30% as a range for incremental margins. But kind of given where we are right now, it definitely feels like that kind of low end of the range, the 20%, might not be as appropriate. And so my question is, has your medium-term range for incremental margins been creeping up?

我想和您談談增量利潤，本季和上季年增率非常強勁。我當然知道，Cintas 歷史上的目標是 20% 到 30% 作為增量利潤的範圍。但考慮到我們現在的處境，絕對感覺到這個範圍的低端，即 20%，可能不太合適。所以我的問題是，你們的中期增量利潤範圍是否一直在攀升？

Yes. 20% to 30% is our target. We -- Q1 was a very attractive incremental margins. And there's always puts and takes in every quarter as I mentioned. Running a business is not linear. But we will expect that we will be in that 20% to 30% range. I certainly like higher in the range than lower. And we are -- and I think our guide speaks to where attractive margin improvement for the year as well.

是的。 20%到30%是我們的目標。我們—第一季的獲利增量非常有吸引力。正如我所提到的，每季都會有投入和投入。經營企業不是線性的。但我們預計會在 20% 到 30% 的範圍內。我當然喜歡較高的範圍而不是較低的範圍。我認為我們的指南也談到了今年利潤率改善的有吸引力的地方。

And our next question comes from Seth Weber from Wells Fargo.

我們的下一個問題來自富國銀行的塞思·韋伯。

I wanted to ask just about the small tick down in Uniform Direct Sales organic growth here in the quarter. It's the first, I think, decline that we've seen there in a while. I know the comp was hard. Is there anything else that you'd call out there for that business?

我想問的是本季統一直銷有機成長的小幅下降。我認為這是我們一段時間以來第一次看到下降。我知道比賽很難。對於這項業務，您還有什麼需要注意的嗎？

Certainly, what we have seen outstanding performance from that business over the past really 2 years. And -- but it is -- as we've spoken about in the past, the Uniform Direct Sale business tends to be a little bit lumpier based upon rollouts of large programs, whether it's hospitality or a Fortune 1000-type customer. So nothing more than that. We still are bullish on the future of that business and for the year and moving forward.

當然，我們在過去的兩年裡看到了該業務的出色表現。而且——但事實確實如此——正如我們過去所談到的，制服直銷業務往往會因大型項目的推出而變得更加不穩定，無論是酒店業還是財富 1000 強類型的客戶。所以僅此而已。我們仍然看好該業務的未來以及今年和未來的發展。

Do you think, Todd, do you think that business could be up for the year? Or do you think that's kind of flattish or down?

托德，你認為今年的生意會好起來嗎？或者你認為這有點平淡或低落？

I would suspect -- well, we expect all of our businesses to grow. So I would suspect that we would see that up. But just the comps are set with the level of what we dealt with hospitality in that vertical, in Fortune 1000, the level of where employees came back so strongly. I wouldn't suspect that you'll see anywhere near the level of growth that we've seen in the last couple of years, but we expect it to grow.

我懷疑——好吧，我們期望我們所有的業務都能成長。所以我懷疑我們會看到這一點。但薪酬是根據我們在財富 1000 強中處理酒店業的水平來設定的，也就是員工回來得如此強烈的水平。我不認為您會看到接近我們過去幾年看到的增長水平，但我們預計它會增長。

Seth, I might point out that the last 2 years have -- they have been a significant recapture of what we sort of lost in that pandemic period of time. In our fiscal '22, that business grew organically over 50%; in fiscal '23, it was almost 30%. So there was a lot of recapture going on, but keep in mind that our longer-term goal for that business, Todd expects it to grow, but it's probably more of a low single-digit to mid-single-digit grower in our portfolio.

塞斯，我可能會指出，過去兩年是我們在大流行期間失去的東西的重要重新獲得。在我們的 22 財年，該業務有機成長超過 50%；在 23 財年，這一比例幾乎達到 30%。因此，正在進行大量的重新奪回工作，但請記住，我們對該業務的長期目標，托德預計它會增長，但在我們的投資組合中，它可能更多的是低個位數到中個位數的成長者。

Right. Okay. Understood. And then maybe just on the First Aid and Safety business, given the margin strength that you're seeing there, can you talk about are you seeing any incremental competition in that space? Are you seeing any bigger players trying to get into that space or just smaller regional players getting more active?

正確的。好的。明白了。然後也許只是在急救和安全業務上，考慮到您在那裡看到的利潤實力，您能談談您是否看到該領域的任何增量競爭？您是否看到任何較大的參與者試圖進入該領域，或者只是較小的區域參與者變得更加活躍？

Yes. Good question, Seth. Certainly, it's a very competitive marketplace and First Aid products, Safety products, there is hundreds of competitors out there. There's many, many ways to procure those products, whether it be van delivered or e-commerce, you name it, we see it there.

是的。好問題，賽斯。當然，這是一個競爭非常激烈的市場，急救產品、安全產品有數百個競爭對手。採購這些產品的方式有很多很多，無論是貨車送貨還是電子商務，凡是你能想到的，我們都在那裡看到。

But as a result of that, it's a very competitive market. And we've talked about the health and safety of employees being the #1 item that businesses are focused on. And when that occurs, there's certainly -- it attracts plenty of people into the marketplace because the value proposition of taking great care of employees is resonating with folks. And so yes, it's a very competitive environment, and I'm sure it will continue to be.

但因此，這是一個競爭非常激烈的市場。我們已經討論過，員工的健康和安全是企業關注的首要問題。當這種情況發生時，肯定會吸引許多人進入市場，因為精心照顧員工的價值主張引起了人們的共鳴。是的，這是一個競爭非常激烈的環境，我相信這種情況將會持續下去。

And our next question comes from Stephanie Moore from Jefferies.

我們的下一個問題來自傑富瑞 (Jefferies) 的史蒂芬妮摩爾 (Stephanie Moore)。

Actually, maybe continuing on that last question there. Could you talk a little bit about what you're seeing in terms of the competitive landscape and your more core Uniform ancillary product segment? As you continue to win new business, where are you seeing the majority of that new business coming from? Is it nonprogrammers, some of the regional players, larger players? Any color there would be helpful.

實際上，也許可以繼續討論最後一個問題。您能否談談您對競爭格局和更核心的統一輔助產品領域的看法？當您不斷贏得新業務時，您認為大部分新業務來自哪裡？是非程式設計師、一些區域性參與者還是較大的參與者？任何顏色都會有幫助。

So I've been in the Uniform Rental and Facility Services business my entire career, 34 years. It's been highly competitive my entire career, and I'm sure it will continue to be that way. But we haven't seen a change in the landscape. It's always really competitive. So that being said, we -- our sales organization is highly skilled. And what we know is, there is a massive opportunity with the no program market.

我的整個職業生涯都從事制服租賃和設施服務業務，長達 34 年。我的整個職業生涯競爭非常激烈，我相信這種情況也會持續下去。但我們還沒有看到情況改變。它總是非常有競爭力。話雖這麼說，我們——我們的銷售組織技術精湛。我們知道，無程式市場存在著巨大的機會。

And for years, our organization has been focused on expanding the pie, and they are continuing to do exactly that. And when we talk about expanding the pie, they are -- those employees at a no programmer mean -- they're wearing garments, right? It's -- but they are -- they may be buying it themselves. They may be buying it through a catalog, it might be a centralized program for the company, but they're purchasing them.

多年來，我們的組織一直致力於擴大蛋糕，他們也將繼續這樣做。當我們談論擴大蛋糕時，他們——那些非程式設計師的員工——他們穿著衣服，對嗎？這是——但他們是——他們可能會自己購買。他們可能是透過目錄購買的，這可能是公司的集中計劃，但他們正在購買它們。

And then we provide more value to them with the products and services that we offer, whether they're unique products like Carhartt or Chef Works or Landau, great branded programs. But the no-program market is really attractive for us, and we find that market sees really good value in what we're offering. So we're focused on expanding that high, and that will continue.

然後，我們透過我們提供的產品和服務為他們提供更多價值，無論它們是 Carhartt、Chef Works 或 Landau 等獨特產品，還是出色的品牌計劃。但無程式市場對我們來說確實很有吸引力，而且我們發現市場認為我們提供的產品確實具有很高的價值。因此，我們專注於擴大這一高度，並且這種情況將會持續下去。

Got it. And just a follow-up, if I may. You noted that retention level continue to be really high. I'm just curious, in this current environment, what do you think is resonating the most with your customers that your sales force kind of goes in? Is it kind of the willingness to work with them on price? Is it the product offering, your scale? I'd love to just get your thoughts on what do you think is resonating the most to drive such a nice retention level.

知道了。如果可以的話，我只是跟進一下。您注意到保留水平仍然很高。我只是很好奇，在當前的環境下，您認為您的銷售人員所從事的工作最能引起客戶的共鳴？是否願意在價格上與他們合作？是產品供應還是規模？我很想聽聽您的想法，您認為什麼最能引起共鳴，以推動如此好的保留水準。

Yes. Great question, Stephanie. That's a very complicated answer because there's so many inputs to it. But it starts with being highly focused on taking incredibly good care of our customers and attracting and retaining the very best people. But then giving them product, services, tools so that they can not only have the intent to take great care of our customers, but do just exactly that.

是的。好問題，史蒂芬妮。這是一個非常複雜的答案，因為有太多的輸入。但這首先是高度專注於為我們的客戶提供令人難以置信的優質服務，並吸引和留住最優秀的人才。然後為他們提供產品、服務和工具，以便他們不僅能夠有心照顧我們的客戶，而且能夠做到這一點。

So -- and that gets into great products that I mentioned earlier, the service -- focus that we -- or the tools that we're making that make it easier to do business with us. But it gets down to our people and positioning them to take a really, really good care of our customers and then executing on that. And they're executing at a really high level.

因此，這涉及到我之前提到的優秀產品、我們關注的服務或我們正在製作的工具，這些工具使與我們開展業務變得更加容易。但這取決於我們的員工，讓他們真正非常好地照顧我們的客戶，然後執行這一點。他們的執行水準非常高。

And we talk often about when markets -- when things are challenging, when it's hard to attract people, when it's hard to procure products, when it's hard to operate in the marketplace, it gives us a chance to shine. And our culture is shining through. And our people are doing one heck of a job in taking care of our customers.

我們經常談論市場，當事情充滿挑戰時，當難以吸引人才時，當難以採購產品時，當難以在市場中運作時，它給了我們一個大放異彩的機會。我們的文化正在閃耀。我們的員工在照顧客戶方面做得非常出色。

And our next question comes from Scott Schneeberger from Oppenheimer.

我們的下一個問題來自奧本海默的斯科特·施尼伯格。

Guys, you've certainly -- it sounds like you really want to speak to a SmartTruck because that's been going very well. I was hoping you could add also on automation to facilities. And where I'm going here, just kind of an update on where I'm going here is it sounds like you've been getting nice efficiencies and you still see more room to run.

夥計們，你們確實——聽起來你們真的很想與 SmartTruck 交談，因為一切進展順利。我希望您也可以在設施中添加自動化功能。我要去的地方，只是我要去的地方的更新，聽起來你已經獲得了很好的效率，而且你仍然看到更多的運行空間。

Is there any quantification you can put on that? I know you're looking for margins up this year overall business. But maybe just help us get an idea of what's at play there and how much you can do.

您可以對此進行量化嗎？我知道您希望今年整體業務的利潤率有所提高。但也許只是幫助我們了解其中的作用以及您可以做多少事情。

Scott, I'll start. Mike, if you would like to chime in there. We're deploying technology, and you can call it automation, you can call it technology, you can call it digital. We're deploying that across all of our businesses and across all areas of our business as well, and we've been focused on that for years.

史考特，我要開始了。麥克，如果你願意插話的話。我們正在部署技術，你可以稱之為自動化，你可以稱之為技術，你可以稱之為數位化。我們正在將其部署到我們所有的業務以及我們業務的所有領域，多年來我們一直專注於此。

But there certainly is -- we're seeing some real benefits there with our investment with SAP, with our investments -- our partnerships with Google and with Verizon. And it's -- those are -- we see that there's plenty of opportunities still to come there to improve in the efficiencies of our business and to automate certain functions.

但確實有——透過我們對 SAP 的投資、透過我們與 Google 和 Verizon 的合作夥伴關係，我們看到了一些真正的好處。我們看到，仍然有很多機會可以提高我們的業務效率並實現某些功能的自動化。

And we call it -- make it easier for our customers to do business and make it easier for our employee partners to take great care of our customers. The more we can invest there, we think it's an incredibly good use of our balance sheet because it positions us well for not just the short term, but the long term as well.

我們稱之為—讓我們的客戶更輕鬆地開展業務，讓我們的員工合作夥伴更輕鬆地照顧我們的客戶。我們可以在那裡投資的越多，我們認為這對我們的資產負債表來說是一種非常好的利用，因為它不僅使我們在短期內處於有利地位，而且在長期內也處於有利地位。

Yes. There are so many details that go into all of the things that Todd just talked about, that it's really hard to put a number on it. Our goal is, as you've heard us say, is continue to improve margins. We have a number of different levers to do so. Our goal is incrementals in that 20% to 30% range, recognizing we're at the bottom of that range today.

是的。托德剛才談到的所有事情都有很多細節，很難給出具體數字。正如您所聽到的，我們的目標是繼續提高利潤率。我們有許多不同的手段來做到這一點。我們的目標是在 20% 到 30% 的範圍內增量，並認識到我們今天處於該範圍的底部。

But it's hard to put a specific number on what's left because we're always working on what's -- what more can we do. And there are so many details and so many different projects we're working on. So our guide certainly does imply for continued margin improvement over last year, and that's the way we think about it.

但很難給出剩下的具體數字，因為我們一直在研究我們還能做些什麼。我們正在處理很多細節和很多不同的項目。因此，我們的指南確實意味著去年的利潤率將持續改善，這就是我們的想法。

Great. Appreciate that. The -- you just referenced SAP, and you mentioned CapEx may be high end of the range this year, working on some implementation in the Fire segment. Could you just speak to -- would that have a tail to next year? How much more -- I mean, are we going to see SAP projects for years to come? Just a sense of what you have on the spend side going forward.

偉大的。感謝。您剛剛提到了 SAP，並提到今年的資本支出可能是範圍的高端，致力於 Fire 領域的一些實施。你能談談——這會影響到明年嗎？還有多少——我的意思是，我們在未來幾年還會看到 SAP 專案嗎？只要了解您未來的支出情況。

From a Fire perspective, the -- we are in the midst of the early innings of the implementation. And so we'll see some pressure in the Fire margins a little bit this year and a little bit next year. The synergies and the benefits don't come overnight. It's not a flip of the switch.

從 Fire 的角度來看，我們正處於實施的早期階段。因此，我們今年和明年都會看到火力利潤面臨一些壓力。綜效和效益並非一朝一夕就能實現。這不是開關的翻轉。

And so we -- just like we did with the Rental business and the First Aid business before that, we need to get onto the platform. It takes a little bit of time to get really good at using the platform, and then we really start to see the benefits accelerate just like we have in First Aid and Rental. Now that's a -- Fire is a smaller part of our business, but we certainly expect that those benefits will come.

因此，就像我們之前對租賃業務和急救業務所做的那樣，我們需要進入這個平台。需要一點時間才能真正熟練地使用平台，然後我們真正開始看到效益正在加速成長，就像我們在急救和租賃領域一樣。現在，消防只是我們業務的一小部分，但我們當然期望這些好處將會到來。

As it relates to SAP, SAP is not -- it's a journey, right? And we are -- even though we are on SAP and will be for most of our business after the Fire Protection business gets on, there are constant things to learn from SAP. There are new initiatives in working with SAP and Google and Verizon that create new and different things. And so we look at this -- I think Todd's talked about it as one of his largest initiatives in terms of technology.

就 SAP 而言，SAP 並不是——它是一個旅程，對嗎？我們——儘管我們使用 SAP，並且在消防業務開展後我們的大部分業務也將使用 SAP，但我們仍然可以從 SAP 身上學到很多東西。我們與 SAP、Google 和 Verizon 合作推出了一些新舉措，創造了新的、不同的事物。所以我們來看看這個——我認為托德將其視為他在技術方面最大的舉措之一。

And it's a journey. It's not a flip of the switch. We turn on new systems here and there. So we're in the midst of that. We'll continue to invest in all of that. And our expectation is, it's going to continue to bring benefits into the future.

這是一段旅程。這不是開關的翻轉。我們到處啟用新系統。所以我們正處於其中。我們將繼續對所有這些進行投資。我們的期望是，它將繼續為未來帶來好處。

Scott, to expand upon what Mike said, it is a journey. But when you're on that journey, there is benefits -- a long, long tail of benefits as well. And so we will continue to invest appropriately. We have relationships at a very high level in each of those organizations, and it's going to bear fruit for us. And that's part of our plan.

斯科特，根據麥克所說，這是一趟旅程。但當你踏上這段旅程時，就會有好處——還有很長很長的好處。因此我們將繼續進行適當的投資。我們在每個組織中都建立了非常高水準的關係，這將為我們帶來成果。這是我們計劃的一部分。

It's not easy. It's very challenging to go through these processes. But our team has shown the wherewithal to not only digest the change, but then leverage the opportunities that are in front of them.

這並不容易。經歷這些過程非常具有挑戰性。但我們的團隊已經展示了不僅能夠消化變革，還能利用擺在他們面前的機會的資金。

And our next question comes from Shlomo Rosenbaum.

我們的下一個問題來自什洛莫·羅森鮑姆。

Todd, maybe you can just peel the onion back a little bit more on that margin on the First Aid side? I know you pointed to some sourcing and stuff like that. But it seems like the business has gone from mid-teens to low 20s in the course of the year. And I was wondering if there -- is there something to do with the route optimization?

托德，也許你可以在急救方面把洋蔥再剝一點？我知道你提到了一些來源之類的東西。但這一年的時間裡，該公司的業務似乎從十幾歲左右下降到了二十幾歲左右。我想知道是否與路線優化有關？

Is it mix related, pricing? Anything else that operationally made such a significant difference? And after that, I have just a question on the labor environment for you guys yourselves? Are you -- is it easier for you guys to source people for what you need?

與組合、定價有關嗎？還有什麼其他因素可以在操作上產生如此顯著的差異嗎？接下來我想問你們自己關於勞動環境的問題？你們是否更容易找到所需的人員？

Good question, Shlomo. Yes. Again, we love the First Aid business. But we're -- there's so many inputs to margin expansion, and we're leveraging them all. It starts with really good revenue growth, and we're seeing that. And that's in a big way because the value proposition is resonating, the products, the services that we offer in the marketplace, trying to attract and retain people is still challenging.

好問題，什洛莫。是的。再說一遍，我們熱愛急救業務。但我們——利潤率擴張的投入如此之多，我們正在充分利用它們。它始於非常好的收入成長，我們已經看到了這一點。這在很大程度上是因為價值主張引起了共鳴，我們在市場上提供的產品和服務，試圖吸引和留住人才仍然具有挑戰性。

And people are trying to -- customers are trying to take really good care of their people. And we're benefiting from that and we're helping them accomplish exactly that. We're helping them run their business better. So that's helpful. The mix, as you know, has -- back during the pandemic, it was certainly so much more focused on safety products, a lot of clubs and a lot of sanitizer and those types of items.

人們正在努力——客戶正在努力真正照顧好他們的員工。我們正在從中受益，並且正在幫助他們實現這一目標。我們正在幫助他們更好地經營業務。所以這很有幫助。如您所知，這種組合在大流行期間確實更加關注安全產品、大量俱樂部和大量消毒劑以及此類物品。

And that has abated a bit, and the mix is back focused on First Aid and those types of products, more recurring revenue type. And yes, we are absolutely leveraging technology to make it easier to do business, but also to position our partners, our employee partners to provide more value to our customers.

這種情況已經減弱，並且組合重新集中在急救和那些類型的產品上，更多的是經常性收入類型。是的，我們絕對在利用科技讓開展業務變得更容易，同時也讓我們的合作夥伴、我們的員工合作夥伴為我們的客戶提供更多價值。

And SmartTruck is a component of that. We did have a little bit of energy tailwind, 40 basis points. But as Mike cited earlier, not all that's because of the price at the pump. That is also because we are extracting the inefficiencies out. And we always talk around here about how we don't make money when the wheels are moving. We make money when the wheels stop.

SmartTruck 就是其中的一個組成部分。我們確實有一點能源順風，40 個基點。但正如麥克之前提到的，這並不全是因為加油站的價格。這也是因為我們正在消除低效率的因素。我們總是在這裡談論當車輪轉動時我們如何賺錢。當車輪停下來時，我們就能賺錢。

That's better for our customers, that's better for our employee partners. And all that is contributing. And then lastly, as I mentioned, our supply chain team has done a great job. They are leveraging the opportunities there. The larger we get in that business, the more leverage they have, and they're executing at a high level.

這對我們的客戶更好，對我們的員工合作夥伴也更好。所有這些都在做出貢獻。最後，正如我所提到的，我們的供應鏈團隊做得很好。他們正在利用那裡的機會。我們在該業務中的規模越大，他們的影響力就越大，而且他們的執行程度就越高。

And -- so many inputs that are contributing to it, and -- but the -- what's really encouraging is, we see those having an opportunity to continue in the future. So certainly, no event is more of a process.

而且 - 如此多的投入對此做出了貢獻，而且 - 但 - 真正令人鼓舞的是，我們看到那些人有機會在未來繼續下去。所以當然，沒有什麼事件比這更像一個過程了。

And then just the labor environment on your own, like for the people that you're sourcing?

然後只是你自己的勞動環境，例如你正在尋找的人？

Yes. Pardon me. So from a labor standpoint, yes. As I mentioned earlier, it is easier, but not easy. And we are looking for great people. We want to hire not only people that are employed somewhere else, but happily employed, which is very challenging. And -- but we think we have a great employee value proposition as well.

是的。對不起。所以從勞工的角度來看，是的。正如我之前提到的，這更容易，但並不容易。我們正在尋找優秀的人才。我們不僅要雇用在其他地方工作的人，而且要雇用快樂的人，這是非常具有挑戰性的。而且——但我們認為我們也有很好的員工價值主張。

And so we're highly focused on that. So -- but yes, easier than it was a year ago. But Shlomo, throughout my career, it's always been challenging. It's a little bit more challenging than it has been historically, but not what it once was a year ago or so.

所以我們高度關注這一點。所以——但是，是的，比一年前容易了。但什洛莫，在我的整個職業生涯中，這始終充滿挑戰。這比歷史上的情況更具挑戰性，但已不再是一年前的情況了。

And our next question comes from Kartik Mehta from Northcoast Research.

我們的下一個問題來自 Northcoast Research 的 Kartik Mehta。

I know there's a lot of questions and maybe thoughts on what happens to new sales. And I'm wondering, if you go back to kind of 2008, 2009 and hopefully never have that recession again. But if you look at new sales back then, how did Cintas perform for new sales? And any lessons from that you would take as we move forward?

我知道對於新銷售的情況有很多問題和想法。我想知道，如果你回到 2008 年、2009 年，希望再也不會出現經濟衰退。但如果你看看當時的新銷量，Cintas 的新銷售表現如何？當我們繼續前進時，您會從中學到什麼教訓？

Yes, Kartik. First of all, we're a really different company today than we were in 2008, 2009. We have a much more diversified customer base. We're now -- today 70% of our customers are service is providing, 30% are goods producing. We have significant verticals that we didn't have as well, health care, education, government.

是的，卡提克。首先，與 2008 年、2009 年相比，我們現在是一家完全不同的公司。我們擁有更多元的客戶群。現在，我們 70% 的客戶正在提供服務，30% 正在生產商品。我們有一些我們沒有的重要垂直領域，例如醫療保健、教育、政府。

So we think we're really well positioned for whenever the next recession is. And I remember '08, '09 because I was running the sales organization back then. And our value propositions still resonated with people, and we still sold new business. And we did so at attractive rates.

因此，我們認為，無論何時下一次經濟衰退，我們都已經做好了充分的準備。我記得 08 年、09 年，因為當時我正在管理銷售組織。我們的價值主張仍然引起人們的共鳴，我們仍然出售新業務。我們以極具吸引力的價格做到了這一點。

As I mentioned, it's not always are we asking for new money. Sometimes it's just a redirection of those from somewhere else to us, not only in a -- maybe a direct competitor standpoint, but also they're purchasing clothing, they're purchasing items to take care of the facilities. So we think we're well positioned.

正如我所提到的，我們並不總是要求新的資金。有時，這只是將其他地方的人重定向到我們，不僅從直接競爭對手的角度來看，而且他們正在購買衣服，他們正在購買用於維護設施的物品。所以我們認為我們處於有利位置。

I might also mention, you didn't ask specifically about it, but we love having a pristine balance sheet. And we think whenever the next recession is that might open up opportunities for us. And just the fact that we've -- our organization is focused on fighting through whatever the economic environment is, taking great care of our customers, taking great care of our employee partners.

我還可能提到，您沒有具體詢問這一點，但我們喜歡擁有原始的資產負債表。我們認為，每當下一次經濟衰退到來時，都可能為我們帶來機會。事實上，我們的組織專注於應對任何經濟環境，照顧好我們的客戶，並照顧好我們的員工合作夥伴。

And we've grown sales in 52 of the last 54 years. And we suspect that whatever the economic environment is, we believe we're going to be successful in it.

在過去 54 年中，我們有 52 年的銷售額實現了成長。我們懷疑，無論經濟環境如何，我們都相信我們會成功。

Kartik, I might add, Todd might be a little modest. He was running that organization. It was a difficult environment, and he and the sales team exceeded their internal goals and really continued to show that value even in tough times, as Todd mentioned. And as he also talked about, our customer base is quite a bit broader than it was back then, and our sales team is a little bit different.

卡蒂克，我可能會補充一點，托德可能有點謙虛。他正在管理那個組織。正如托德所提到的，這是一個困難的環境，他和銷售團隊超越了他們的內部目標，即使在困難時期也確實繼續展示了這種價值。正如他還談到的那樣，我們的客戶群比當時要廣泛得多，我們的銷售團隊也有些不同。

But the really good news is even back then, in the deepest, longest, broadest recession we'd seen in 100 years, we still sold a lot of new business. And it's a nice reflection of the value proposition that we have.

但真正的好消息是，即使在當時，在 100 年來最嚴重、最長、最廣泛的經濟衰退中，我們仍然出售了大量新業務。這很好地反映了我們的價值主張。

Yes. And just as a follow-up, if you look at the First Aid and Safety business, you're doing really well in it. Is there a way you would look at to say a certain percentage is recurring? Do you consider a certain percentage recurring? I know you don't have long-term contracts in that business. But just from a demand standpoint and what you've seen from a historical standpoint?

是的。作為後續行動，如果你看看急救和安全業務，你會發現你在這方面做得非常好。您是否可以透過某種方式來說明一定比例的重複出現？您認為一定比例的重複出現嗎？我知道你們在該行業沒有長期合約。但僅僅從需求的角度以及從歷史的角度來看你看到了什麼？

Yes, Kartik, it's a good question. I don't have that in front of me, but I know it's -- it has returned much closer to historical or even higher as far as what we see from a repeat -- recurring type of revenue. And we want to provide value to the customers, whatever product services they want. It's just the nature of it, what we provide, whether it be First Aid supplies, access to AEDs, access to eyewash stations, access to clean water through our WaterBreak offering.

是的，卡蒂克，這是一個很好的問題。我面前沒有這樣的數據，但我知道，就我們從重複性經常性收入中看到的情況來看，它已經更接近歷史水平，甚至更高。我們希望為客戶提供價值，無論他們想要什麼產品服務。這就是我們提供的服務的本質，無論是急救用品、AED、洗眼站或透過我們的 WaterBreak 服務獲得清潔水。

Those are all items that are really important to our customers more so today than they were pre-pandemic, and we think that, that trend will continue.

這些都是對我們的客戶來說比疫情前更重要的物品，我們認為這種趨勢將會持續下去。

And our next question comes from Toni Kaplan from Morgan Stanley.

我們的下一個問題來自摩根士丹利的東尼卡普蘭。

So one of your competitors has been talking about using a strategy where they're incentivizing their drivers to cross-sell products. Can you talk about why you don't use that strategy? What the disadvantages are that you have found when doing that?

因此，您的一位競爭對手一直在談論使用一種策略來激勵司機交叉銷售產品。您能談談為什麼不使用該策略嗎？您在這樣做時發現了哪些缺點？

Yes. Great question, Toni. I'm glad you asked because my first job 34 years ago was on the trucks. And we have been cross-selling our products via our -- we call them our service sales representatives. We've been cross-selling them since I started, and I'm sure it was in place well before I started as well. So we see -- the fact that we have 12,000 or so trucks that roll out of our parking lots every single day that are focused on taking great care of our customers, when they roll out of those parking lots, they're spending time in those businesses.

是的。好問題，托尼。我很高興你問這個問題，因為 34 年前我的第一份工作就是卡車司機。我們一直透過我們的服務銷售代表交叉銷售我們的產品。自從我開始以來，我們就一直在交叉銷售它們，而且我確信在我開始之前它就已經到位了。所以我們看到 - 事實上，我們每天都有大約 12,000 輛卡車駛出我們的停車場，這些卡車專注於照顧我們的客戶，當他們駛出這些停車場時，他們會花時間在那些企業。

And they have eyes. They have ears, they have minds, and they see what's going on in those businesses, and they see opportunities. And it always has been and always will be a key component of our growth trajectory because we see that infrastructure as a real advantage. And we leverage it and make sure that those service providers, either they provide more products and services or they provide a lead to provide more products and services based upon the nature of the product that the customer might be interested in.

他們有眼睛。他們有耳朵，有頭腦，他們看到這些企業正在發生什麼，他們看到機會。它一直是、也將永遠是我們成長軌跡的關鍵組成部分，因為我們認為基礎設施是真正的優勢。我們利用它並確保這些服務提供者要么提供更多的產品和服務，要么根據客戶可能感興趣的產品的性質提供更多的產品和服務。

And Toni, we've talked a lot about this over the last -- more than 10 years, we've got customers of all different sizes, verticals, et cetera. And so while we do certainly expect those service sales reps to continue to penetrate and sell, we recognize that some businesses are just more complex than others, are larger than others.

東尼，我們在過去談論了很多這個問題——十多年來，我們擁有各種不同規模、不同行業等的客戶。因此，雖然我們確實希望這些服務銷售代表能夠繼續滲透和銷售，但我們認識到，有些企業只是比其他企業更複雜，規模更大。

And so sometimes, there's a strategy to enhance that opportunity. And it might be through, for example, in health care. We have dedicated people that really do reach out to the decision makers. So it's not just the service sales rep, but it's also other people that have relationship responsibilities that are looking for those new and different penetration opportunities.

所以有時，有一種策略可以增強這種機會。例如，這可能是透過醫療保健領域實現的。我們有專門的人員真正與決策者接觸。因此，不僅是服務銷售代表，還有其他負有關係責任的人也在尋找新的、不同的滲透機會。

It's not as simple just to simply say we're going to go in and have a service sales rep or an SSR go into each customer and sell it, all customers are so different. And so we need a strategy that can attack all types of customers, and we do.

這並不是簡單地說我們要進去讓服務銷售代表或 SSR 進入每個客戶並銷售它那麼簡單，所有客戶都是如此不同。因此，我們需要一種能夠攻擊所有類型客戶的策略，而我們確實做到了。

Toni, we know that our customer satisfaction scores are really good. And in large part because they really like our people. They like our service providers, our frontline service providers. And we leverage that. And whether it be, as Mike mentioned, a more -- a smaller type customer, we can cross-sell via the service provider. A larger one that's a little bit more complicated.

托尼，我們知道我們的客戶滿意度非常高。很大程度是因為他們真的喜歡我們的人民。他們喜歡我們的服務提供者，我們的第一線服務提供者。我們利用這一點。正如麥克所提到的，無論是規模較小的客戶，我們都可以透過服務提供者進行交叉銷售。一個更大的，稍微複雜一點的。

There might be a need for some air cover, for some help there. But nevertheless, that's always been an important component of our strategy and always will be.

可能需要一些空氣掩護，以獲得一些幫助。但儘管如此，這一直是我們策略的重要組成部分，而且永遠都是。

That is super helpful. I wanted to also ask, I think the last few calls, you've been talking more about technology and investments and things of this sort. Are there any, I guess, technology capabilities that you think you still need? Will -- that you either are getting through hiring technology people or maybe even doing M&A?

這非常有幫助。我還想問，我認為最近幾次通話，您更多地談論了技術和投資以及諸如此類的事情。我想您認為您仍然需要什麼技術能力嗎？您是否正在招募技術人員，甚至可能進行併購？

Like -- and maybe you've done it, maybe you still have yet to do, but are there any technology capabilities that you need that basically would be helped through M&A or hiring internally new technology people?

就像——也許你已經做到了，也許你還沒有做到，但是你是否需要任何技術能力，基本上可以透過併購或僱用內部新技術人員來幫助？

Yes, Toni, great question. So we are always on the lookout for those opportunities. We think we have a really strong technology platform that we can build off of. But we know that the answer for what our customers are interested in is with spending time with our customers, and our employee partners are the ones who discern those opportunities.

是的，托尼，好問題。因此，我們一直在尋找這些機會。我們認為我們擁有一個非常強大的技術平台，我們可以以此為基礎進行建構。但我們知道，客戶感興趣的答案是與客戶共度時光，而我們的員工合作夥伴正是發現這些機會的人。

So we're always asking now, how do we make it easier to do business, what -- is there any void? And frankly, that's where most of our investments have come from, that information, been trying to make it easier to do business with us. So we're always in search of trying to be a world-class service provider, but having an incredibly strong technology platform that makes it easier for our customers to do business with us, that makes it easier for our employee partners, our service providers to create a world-class experience for those customers.

所以我們現在總是問，我們如何讓做生意變得更容易，什麼——有什麼空白嗎？坦白說，這就是我們大部分投資的來源，這些資訊一直在努力讓與我們做生意變得更容易。因此，我們一直在努力成為世界一流的服務提供商，但擁有一個極其強大的技術平台，使我們的客戶更容易與我們開展業務，這使我們的員工合作夥伴、我們的服務提供者更容易為這些客戶創造世界級的體驗。

So yes, we're in search of whether it's -- we buy it or we bolt it on to our current platform or we created ourselves, all of those are of interest to us, and we'll be moving forward.

所以，是的，我們正在尋找它是否是——我們購買它，或者我們將它固定到我們當前的平台上，或者我們自己創建，所有這些都是我們感興趣的，我們將繼續前進。

At this time, there are no further questions. I'd like to turn the call back over to Jared Mattingley for closing remarks.

目前，沒有其他問題了。我想將電話轉回給賈里德·馬丁利（Jared Mattingley）做總結發言。

Thank you for joining us this morning. We will issue our second quarter of fiscal '24 financial results in December. We look forward to speaking with you again at that time. Thank you.

感謝您今天早上加入我們。我們將於 12 月發布 24 財年第二季的財務表現。我們期待屆時再次與您交談。謝謝。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。