Casella Waste Systems Inc (CWST) 2024 Q2 法說會逐字稿

Good morning, and thank you for joining us on the call today. Today, we will be discussing our second quarter 2024 results, which were released yesterday afternoon.

早安，感謝您今天加入我們的電話會議。今天，我們將討論昨天下午發布的 2024 年第二季業績。

Here with me today are John Casella, Chairman and Chief Executive Officer of Casella Waste Systems.

今天和我在一起的還有卡塞拉廢棄物系統公司董事長兼執行長約翰·卡塞拉。

Hello, operator? Were you going to say something? No? Okay. Sorry, Charlie, go ahead, please.

你好，接線生？你要說些什麼嗎？不？好的。抱歉，查理，請繼續。

We've John here. Ned Coletta, our President; Brad Helgeson, our Chief Financial Officer; and Sean Steves, our Senior Vice President and Chief Operating Officer of Solid Waste Operations. After a review of these results and an update on company's activities and business environment, we will be happy to take your questions.

約翰在這裡。內德·科萊塔，我們的總裁； Brad Helgeson，我們的財務長；史蒂夫（Sean Steves），我們的固體廢棄物業務資深副總裁兼營運長。在審查這些結果以及公司活動和商業環境的最新資訊後，我們將很樂意回答您的問題。

But first, please be aware that various remarks we may make about the company's future expectations, plans, and prospects constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.

但首先，請注意，我們可能對公司的未來預期、計劃和前景所做的各種評論構成前瞻性陳述，以符合 1995 年《私人證券訴訟改革法案》中的安全港條款。

Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the Risk Factors section of our most recently filed Form 10-K and Form 10-Q, which are on file with the SEC. In addition, any forward-looking statements represent our views only as of today and should not be relied upon as representing our views in any subsequent date.

由於各種重要因素的影響，實際結果可能與這些前瞻性陳述所示的結果有重大差異，包括我們最近提交的表格10-K 和表格10-Q 的風險因素部分中討論的因素，這些因素已存檔美國證券交易委員會。此外，任何前瞻性陳述僅代表我們今天的觀點，不應被視為代表我們在任何後續日期的觀點。

While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to today, August 2, 2024.

雖然我們可能選擇在未來某個時候更新前瞻性陳述，但我們明確表示不承擔任何這樣做的義務，即使我們的觀點發生變化。這些前瞻性陳述不應被視為代表我們截至 2024 年 8 月 2 日之後任何日期的觀點。

Also during this call, we will be referring to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP measures, to the extent they are available without unreasonable effort, are included in our press release filed on Form 8-K with SEC.

此外，在本次電話會議中，我們也將提及非公認會計準則財務指標。這些非公認會計原則衡量指標並非依照公認會計原則制定。非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整（只要無需付出不合理的努力即可獲得）包含在我們向 SEC 提交的 8-K 表新聞稿中。

And with that, I will now turn the call over to John Casella to begin today's discussion.

現在，我將把電話轉給約翰·卡塞拉，開始今天的討論。

Thanks, Charlie. Good morning, everyone, and welcome to our second quarter 2024 conference call.

謝謝，查理。大家早安，歡迎參加我們的 2024 年第二季電話會議。

I will begin today's remarks highlighting our strategic execution and continued growth with brief comments on our results. Brad and Ned will then go into more details on our financials and strategies.

我將在今天的演講中開始強調我們的策略執行和持續成長，並對我們的業績進行簡短評論。然後布拉德和內德將詳細介紹我們的財務和策略。

First, I'd like to welcome our new team members to Casella, who joined us from several recent acquisitions. Yesterday afternoon, we announced another major step in our company's growth strategy with the acquisition of LMR Disposal and Whitetail Disposal, two collection companies in the Mid-Atlantic that strongly align with our core operating strategies. These valuable operations immediately offer us additional growth in new markets and more density in existing. We're very excited to begin serving our new customers and continue executing against our growth strategy in these attractive markets.

首先，我要歡迎我們的新團隊成員來到卡塞拉，他們是透過最近的幾項收購加入我們的。昨天下午，我們宣布了公司成長策略的另一個重大舉措，收購了 LMR Disposal 和 Whitetail Disposal，這兩家位於大西洋中部的收集公司與我們的核心營運策略高度契合。這些有價值的業務立即為我們提供了新市場的額外成長和現有市場的密度。我們非常高興能夠開始為新客戶提供服務，並繼續在這些有吸引力的市場中執行我們的成長策略。

We have also closed on three other tuck-in acquisitions this year; two in July and one in May. I'd like to provide another welcome to all of our team members who have come on board. These five acquisitions reflect our ability to continue to grow the business through a disciplined approach. Our team remains focused and balanced across integration efforts, our core business and on future opportunities.

今年我們也完成了另外三項臨時收購；七月兩次，五月一次。我想再次歡迎所有加入我們的團隊成員。這五次收購反映了我們透過嚴格的方法繼續發展業務的能力。我們的團隊在整合工作、核心業務和未來機會方面保持專注和平衡。

Moving to our results, both revenue and adjusted EBITDA reached all-time highs on a quarterly basis. This milestone reflects the hard work and dedication our team has put into building the business.

從我們的業績來看，季度營收和調整後 EBITDA 均創歷史新高。這一里程碑反映了我們團隊為建立業務所付出的辛勤工作和奉獻精神。

While there are a couple of unexpected items that weighed on the second quarter results noted in our press release, our year-to-date performance is consistent with our plans for the first half of the year. Looking ahead, we are well positioned to carry the growth momentum forward over the second half of the year.

儘管我們的新聞稿中提到了一些意想不到的因素對第二季業績產生了影響，但我們今年迄今為止的業績與我們上半年的計劃一致。展望未來，我們已做好充分準備，在下半年繼續保持成長動能。

Shifting to a few of our key strategies and performance of our operations, starting with our landfills. Volumes were down year-over-year. MSW volumes were, again, stable in the quarter, but lower C&D and special waste tons continued to present a bit of a headwind. However, this is largely a result of the upcoming closure of a large third-party C&D landfill in New York at the end of the year.

從我們的垃圾掩埋場開始，轉向我們的一些關鍵策略和營運績效。成交量較去年同期下降。本季城市固體垃圾量再次保持穩定，但建築、拆建和特殊廢物噸數的下降繼續帶來一些阻力。然而，這主要是由於紐約一處大型第三方C&D垃圾掩埋場即將於年底關閉。

More importantly, we had expected this EBITDA and margin pressure to begin the year. It has been factored into our guidance, and we believe the market will return to a more steady state next year. And I want to stress that this has not shifted our strategy in any way. We are steadfast in prioritizing long-term returns and not allowing any short-term impacts to sway the focus. Our average price per ton at the landfills demonstrates this approach as we continue to improve the quality of our inbound waste stream.

更重要的是，我們預計今年開始會出現 EBITDA 和利潤率壓力。這已納入我們的指導中，我們相信明年市場將恢復到更穩定的狀態。我想強調的是，這並沒有以任何方式改變我們的策略。我們堅定地優先考慮長期回報，不允許任何短期影響動搖我們的重點。隨著我們不斷提高入站廢物流的質量，我們垃圾掩埋場的每噸平均價格證明了這種方法。

On the collection side, results continue to show positive returns from our strategic investments in this line of business. Our frontline development route enhancements and fleet investment programs are highly successful. In our base business, we expanded adjusted EBITDA 130 basis points year-over-year.

在收款方面，我們在這一業務領域的策略投資持續顯示出正面的回報。我們的一線發展路線增強和機隊投資計畫非常成功。在我們的基礎業務中，我們調整後的 EBITDA 年成長了 130 個基點。

Sean Steves and his team have developed a proven model that is delivering strong operating performance. But it's a collaborative approach, starting with our human resource team and their efforts around recruitment, our CDL and diesel mechanic programs to help set our frontline team up with the necessary job skills and safety training for success. As a result, employee turnover and safety levels are trending positively.

Sean Steves 和他的團隊開發了一種經過驗證的模型，可以提供強勁的營運績效。但這是一種協作方法，從我們的人力資源團隊及其在招聘、CDL 和柴油機技工計劃方面的努力開始，幫助我們的一線團隊掌握必要的工作技能和安全培訓，以取得成功。因此，員工流動率和安全水準呈現正面趨勢。

From an operational standpoint, our fleet automation, route conversion and onboard computer plans are driving higher productivity levels and improving operating cost metrics. We are deploying this model across our footprint and believe there's a long runway of opportunity ahead, especially with the acquisitions we've completed over the last year or more. While a lot of coordination and planning is involved, repeatable execution is part of our success.

從營運角度來看，我們的車隊自動化、路線轉換和機載電腦計畫正在推動更高的生產力水平並改善營運成本指標。我們正在整個業務範圍內部署這種模式，並相信前面有很長的機會，特別是我們在過去一年或更長時間完成的收購。雖然涉及大量的協調和規劃，但可重複的執行是我們成功的一部分。

In resource solutions, we, once again, posted very strong results in this segment, led by the performance of our recycling operations. While our average commodity revenue per ton was up 50% year-over-year, much of this value is shared with our customers, given our balanced model that focuses on steady returns while reducing commodity price volatility. Contributions from the Boston MRF drove most of the success in the quarter.

在資源解決方案方面，在回收業務的表現的帶動下，我們再次在該領域取得了非常強勁的業績。雖然我們每噸的平均商品收入同比增長了 50%，但考慮到我們的平衡模式註重穩定回報，同時減少商品價格波動，因此大部分價值是與我們的客戶分享的。波士頓 MRF 的貢獻推動了本季的大部分成功。

On the national accounts side, this business also posted a bit of growth in the quarter and remains a key part of our overall strategy of providing superior differentiated services, which is something I'd like to highlight for a minute. As you know, we've talked about a sales strategy targeting larger commercial and industrial customers. This strategy is not fully apparent when looking at our Solid Waste business alone, as positive volume growth in national accounts offset some of our Solid Waste volume decline.

在國民帳戶方面，該業務在本季度也出現了一些增長，並且仍然是我們提供優質差異化服務的整體策略的關鍵部分，這是我想強調的一點。如您所知，我們討論了針對較大商業和工業客戶的銷售策略。僅從我們的固體廢棄物業務來看，這項策略並不完全明顯，因為國民帳戶數量的正成長抵消了我們固體廢棄物數量下降的部分影響。

This dynamic is more reflective of our strategy where we are focused on growing our larger, profitable National Account customers and revenue as compared to some of the less profitable Solid Waste revenues we are shedding.

這種動態更反映了我們的策略，即與我們正在放棄的一些利潤較低的固體廢物收入相比，我們專注於發展規模更大、盈利的國民帳戶客戶和收入。

Wrapping up, we are executing against our growth strategy and are well positioned for the remainder of this year. Our core operating programs are intact. Our project development pipeline offers a long runway for profitable growth, combined with our acquisition strategy that has expanded our operating footprint to 10 states, we are poised to continue delivering value.

總而言之，我們正在執行我們的成長策略，並為今年剩餘時間做好了準備。我們的核心營運程序完好無損。我們的專案開發管道為獲利成長提供了一條漫長的道路，再加上我們的收購策略將我們的營運足跡擴大到了 10 個州，我們準備繼續創造價值。

And with that, I'll turn it over to Brad to go through some details on the financials.

接下來，我將把它交給布拉德，讓他檢查一些財務細節。

Thanks, John. Good morning, everyone.

謝謝，約翰。大家早安。

Revenues in the second quarter were $377.2 million, up $87.5 million or 30.2% year-over-year with $70 million from acquisition rollover and $17.5 million from organic growth or 6%. Solid Waste revenues were up 35.1% year-over-year with acquisition growth of 30.7%, price up 5.7% and volumes down 1.8%.

第二季營收為 3.772 億美元，年增 8,750 萬美元，成長 30.2%，其中 7,000 萬美元來自收購展期，1,750 萬美元來自有機成長，成長 6%。固體廢棄物收入年增 35.1%，收購量成長 30.7%，價格上漲 5.7%，數量下降 1.8%。

Within Solid Waste, price in the collection line of business was up 6.2% and volume down 1.2%. In the front load commercial business, price was up 7.3% and volume up 1.1%, while volume declines in the quarter were concentrated in residential and roll-off as we worked to improve the quality of revenue and margins in those businesses.

在固體廢棄物中，收集業務的價格上漲了 6.2%，數量下降了 1.2%。在前期商業業務中，價格上漲 7.3%，銷量成長 1.1%，而本季銷量下降主要集中在住宅和滾裝業務，因為我們致力於提高這些業務的收入品質和利潤率。

Revenues in the Disposal line of business were up 2.3% year-over-year with transfer revenue up 9% and landfill revenue down 5.2%. Landfill price growth of 5.2% was offset by lower volume of 10.4%. MSW volumes into the landfills were down slightly in the quarter and essentially flat over the first half of the year, but we saw continued weakness in C&D and special waste volumes.

處置業務收入年增 2.3%，其中轉移收入成長 9%，垃圾掩埋收入下降 5.2%。垃圾掩埋場價格成長 5.2%，但被數量下降 10.4% 所抵銷。本季進入垃圾掩埋場的都市固體廢棄物量略有下降，與上半年基本持平，但我們看到拆建和特殊廢棄物量持續疲軟。

As we've discussed, the C&D market is currently under pressure as certain competitors in the Metro New York market have aggressively pursued volumes. We expect this dynamic to continue through the end of the year, but it should abate in 2025.

正如我們所討論的，由於紐約大都會市場的某些競爭對手積極追求銷量，拆建市場目前面臨壓力。我們預計這種動態將持續到今年年底，但到 2025 年應該會減弱。

In the case of special waste volumes, we have a deep sales pipeline, but these waste streams are often project-based, and thus, timing is inherently difficult to predict. The average price per ton at the landfills was up 10.8% year-over-year, reflecting a mix shift away from lower priced streams as we help align on price in the face of volume pressure and prioritize preserving our valuable airspace.

就特殊廢棄物量而言，我們擁有深厚的銷售管道，但這些廢物流通常是基於專案的，因此時間本身就很難預測。垃圾掩埋場的每噸平均價格年增 10.8%，反映出我們在面對容量壓力時幫助調整價格並優先保護我們寶貴的空域，從而從較低價格的流向混合轉變。

Resource solutions revenues were up 15.4% year-over-year, with recycling and other processing revenue up 31.1% and national accounts up 6.9%. Within processing operations, price was up 5.5%, driven by an increase of over 50% in average commodity revenue over Q2 last year.

資源解決方案營收年增 15.4%，回收和其他加工收入成長 31.1%，國民帳戶成長 6.9%。在加工業務中，由於平均商品收入比去年第二季成長了 50% 以上，價格上漲了 5.5%。

Of course, most of the benefit of these higher commodity prices is shared with our customers under our contract structures designed to mitigate risk. So the net benefit to our revenue in the quarter was only $1.1 million. We expect favorable year-over-year comps to continue through 2024 as recycled commodity markets remain firm and current prices are well above second half of last year.

當然，這些商品價格上漲的大部分好處是根據我們旨在降低風險的合約結構與我們的客戶分享的。因此，本季我們的淨收入僅為 110 萬美元。我們預計，由於回收商品市場保持堅挺且當前價格遠高於去年下半年，有利的年比業績將持續到 2024 年。

Processing volume was up 12.7% with higher recycling volumes benefited by production enhancements at the Boston MRF. Within national accounts revenue, price was up 3.7% and volume was up 3.4%. Acquisitions contributed 4.5% across the resource solutions segment.

處理量增加了 12.7%，受益於波士頓 MRF 產量的提高，回收量也有所增加。在國民帳戶收入中，價格上漲 3.7%，數量上漲 3.4%。收購在資源解決方案領域貢獻了 4.5%。

Adjusted EBITDA was $91.6 million in the quarter, up $19.4 million or 26.9% year-over-year, with $18 million from acquisition rollover. Adjusted EBITDA margins were 24.3% in the quarter, down 60 basis points year-over-year.

本季調整後 EBITDA 為 9,160 萬美元，年增 1,940 萬美元，成長 26.9%，其中 1,800 萬美元來自收購展期。本季調整後 EBITDA 利潤率為 24.3%，年減 60 個基點。

Bridging the year-over-year change in the EBITDA margin, a few specific headwinds drove the decline in the quarter. Lower volume at the landfills, particularly C&D; higher landfill operating costs, including leachate with the wet weather in New England; and employee separation costs together represented over 200 basis points of margin headwind.

儘管 EBITDA 利潤率同比發生變化，但一些具體的不利因素推動了本季的下降。垃圾掩埋場的容量減少，特別是 C&D；垃圾掩埋場運作成本較高，包括新英格蘭潮濕天氣造成的滲濾液成本；員工離職成本合計代表了超過 200 個基點的利潤逆風。

The rest of our business performed well and in line with plan. Our pricing programs continued to outpace inflation. The Boston MRF contributed approximately $2.5 million of adjusted EBITDA growth in the quarter, and we benefited again from higher recycled commodity prices and ongoing cost efficiencies in the collection business. Acquisitions were also a modest tailwind to consolidated margins in the quarter.

我們其餘的業務表現良好並符合計劃。我們的定價計劃繼續超過通貨膨脹。波士頓 MRF 在本季度貢獻了約 250 萬美元的調整後 EBITDA 成長，我們再次受益於較高的回收商品價格和收集業務持續的成本效率。收購也是本季綜合利潤率的溫和推動因素。

Stepping back from the quarter, adjusted EBITDA margins are up 40 basis points year-to-date, and our outlook for margin expansion for the full year, as reflected in our guidance, is unchanged. Cost of operations in the quarter was up $57.5 million year-over-year, with $48 million of the increase from acquisitions and $9.5 million from the base business. So, on a same-store basis, cost of operations was down 60 basis points as a percentage of revenue year-over-year.

從本季來看，調整後的 EBITDA 利潤率今年迄今成長了 40 個基點，而我們的指引中所反映的全年利潤率擴張的前景沒有變化。本季營運成本年增 5,750 萬美元，其中 4,800 萬美元的增加來自收購，950 萬美元來自基礎業務。因此，在同店基礎上，營運成本佔收入的比例年減了 60 個基點。

Our effective tax rate was 35.1% in the quarter as certain non-deductible expenses and discrete items pushed the rate above our statutory rate of approximately 27%. The effective rate is projected at approximately 35% for the year, but we expect to pay less than $5 million in cash taxes.

本季我們的有效稅率為 35.1%，因為某些不可扣除的費用和離散項目使稅率高於我們約 27% 的法定稅率。預計今年的有效稅率約為 35%，但我們預計支付的現金稅將少於 500 萬美元。

Adjusted net income was $12.5 million in the quarter, down $6.3 million compared to prior year, with the accelerated amortization of identifiable intangibles associated with acquisitions weighing on earnings. Intangible amortization was up $8 million year-over-year, while D&A associated with acquisitions was over 26% of acquired revenue as compared to approximately 12% for our base business.

本季調整後淨利為 1,250 萬美元，比上年同期減少 630 萬美元，與收購相關的可識別無形資產的加速攤銷對盈利造成壓力。無形攤銷年增 800 萬美元，而與收購相關的 D&A 佔收購收入的 26% 以上，而我們的基礎業務約為 12%。

GAAP net income was $7 million in the quarter, up $1.5 million compared to prior year, impacted by higher D&A and acquisition-related expenditures, but comparing favorably to the charges for the termination of bridge financing and a legal settlement in Q2 last year.

受 D&A 和收購相關支出增加的影響，本季 GAAP 淨利潤為 700 萬美元，比前一年增加 150 萬美元，但與去年第二季終止過橋融資和法律和解的費用相比，情況良好。

Net cash provided by operating activities was $79.8 million for the first six months of 2024, down $3.4 million year-over-year. This was driven by higher cash outflows from net changes in assets and liabilities, including AP timing in the first quarter and slower AR collections at our businesses acquired from GFL in the Mid-Atlantic.

2024 年前 6 個月經營活動提供的淨現金為 7,980 萬美元，年減 340 萬美元。這是由於資產和負債淨變化帶來的現金流出增加，包括第一季的應付帳款時間以及我們從大西洋中部 GFL 收購的業務的應收帳款收款速度放緩。

Overall, DSO at June 30 was 38 days, which comprises 55 days at the former GFL operations and 32 days for the rest of Casella's AR. As a reminder, the acquired businesses were a carve-out from GFL, so the collections were largely not in our control until we transitioned AR and customer data onto our systems, which was completed in Q2. We'll focus on working this AR balance down in the coming months, which represents a cash flow opportunity going forward, but this has certainly been a drag on reported cash flow year-to-date.

總體而言，截至 6 月 30 日的 DSO 為 38 天，其中包括前 GFL 運營的 55 天和 Casella AR 其餘運營的 32 天。提醒一下，所收購的業務是從 GFL 中剝離出來的，因此在我們將 AR 和客戶資料轉移到我們的系統（該工作於第二季完成）之前，這些集合基本上不在我們的控制範圍內。我們將在未來幾個月專注於降低應收帳款餘額，這代表著未來的現金流機會，但這肯定會拖累年初至今報告的現金流。

Adjusted free cash flow was $39.5 million in the first six months compared to $47.9 million in the first half of 2023, driven by the working capital dynamics that I just discussed and higher capital expenditures year-over-year.

受我剛才討論的營運資本動態和逐年增加的資本支出的推動，前六個月調整後自由現金流為 3950 萬美元，而 2023 年上半年為 4790 萬美元。

I'll note that adjusted free cash flow year-to-date represents less than 30% of our full year guidance as compared to nearly 40% generated in the first half last year. However, considering the working capital movements reflected in the first half number this year, we believe that we are very well positioned heading into second half from a cash flow standpoint.

我要指出的是，年初至今調整後的自由現金流僅占我們全年指引的不到 30%，而去年上半年則接近 40%。然而，考慮到今年上半年數據所反映的營運資金變動，我們認為，從現金流的角度來看，我們在進入下半年時處於非常有利的位置。

As of June 30, we had $1.05 billion of debt, $208.5 million of cash and available liquidity of $481 million. Our consolidated net leverage ratio for purposes of our bank covenants was 2.63x. Our liquidity and leverage profile have enabled us to be opportunistic in executing on our M&A pipeline as we funded our recent acquisitions, including LMR and Whitetail Disposal, primarily with cash on hand. We currently have $75 million now drawn on our revolver with approximately $225 million of remaining liquidity and pro forma leverage is less than 3 times.

截至 6 月 30 日，我們的債務為 10.5 億美元，現金為 2.085 億美元，可用流動資金為 4.81 億美元。根據銀行契約，我們的綜合淨槓桿率為 2.63 倍。我們的流動性和槓桿狀況使我們能夠在執行併購管道時抓住機會，因為我們主要使用手頭現金為最近的收購（包括 LMR 和 Whitetail Disposal）提供資金。目前，我們的左輪手槍已提取 7,500 萬美元，剩餘流動性約為 2.25 億美元，預計槓桿率不到 3 倍。

As we announced in our press release yesterday, we've updated our guidance to reflect developments in the business to-date, including acquisitions closed. We're raising our ranges for revenue and adjusted EBITDA by $40 million and $10 million, respectively, at the midpoints, primarily reflecting the anticipated contribution from acquisitions. We reaffirmed guidance for adjusted free cash flow with the expected contribution from acquisitions, offset by the cost of financing and a conservative outlook on AR collections with newly acquired businesses.

正如我們在昨天的新聞稿中宣布的那樣，我們更新了指導意見，以反映迄今為止的業務發展，包括已完成的收購。我們將營收範圍和調整後的 EBITDA 範圍分別上調 4,000 萬美元和 1,000 萬美元，主要反映了收購帶來的預期貢獻。我們重申了調整後自由現金流的指引，預計收購貢獻將被融資成本和新收購業務 AR 收藏的保守前景所抵消。

We lowered our ranges for the GAAP metrics, net income and net cash provided by operating activities due largely to higher acquisition-related expenditures. Reconciliations of our guidance on these GAAP metrics to their related non-GAAP metrics are included in the press release.

我們降低了 GAAP 指標、營運活動提供的淨利潤和淨現金的範圍，這主要是由於收購相關支出增加。我們對這些 GAAP 指標的指導與其相關的非 GAAP 指標的調整包含在新聞稿中。

Regarding key assumptions underlying guidance, we now expect Solid Waste volume to be down 1% to 2%, reflecting continued softness in landfill volumes as well as lower residential collection and roll-off volumes as we prioritize customer profitability over volume growth. However, our overall organic revenue growth assumptions remain unchanged, reflecting an expectation that Solid Waste price growth will be in the upper end of our anticipated range of 5% to 6% for the year.

關於指導的關鍵假設，我們現在預計固體廢物量將下降 1% 至 2%，反映出垃圾掩埋量持續疲軟以及住宅收集和滾存量下降，因為我們優先考慮客戶盈利能力而不是數量增長。然而，我們的整體有機收入成長假設保持不變，反映出我們預計今年固體廢棄物價格成長將位於我們預期範圍 5% 至 6% 的上限。

And with that, I'll turn it over to Ned.

有了這個，我會把它交給內德。

Thanks, Brad, and good morning, everyone.

謝謝布拉德，大家早安。

As mentioned in our earnings release yesterday afternoon, we've completed five acquisitions year-to-date that are expected to contribute over $100 million of annualized revenues. Nearly all of this acquired revenue is in our Mid-Atlantic region, where we see tremendous opportunity to build scale, further grow our business through our differentiated service offerings. We are excited about further building our business in the Mid-Atlantic and these bolt-on acquisitions fit our long-term strategy well.

正如我們在昨天下午的財報中提到的，我們今年迄今已完成五項收購，預計將貢獻超過 1 億美元的年化收入。幾乎所有獲得的收入都來自我們的大西洋中部地區，我們在那裡看到了擴大規模、透過差異化服務進一步發展業務的巨大機會。我們對在大西洋中部進一步建立業務感到興奮，這些補強收購非常適合我們的長期策略。

Whitetail and LMR are in adjacent secondary markets with high-quality operations and a balanced mix of commercial, subscription, residential, municipal and industrial customers. Further, we're building operational density, which will help to drive additional efficiencies in our collection operations. These acquired businesses have well-established customer and community relationships that present great opportunities for organic growth, including through our resource solutions offerings.

Whitetail 和 LMR 位於相鄰的二級市場，擁有高品質的營運以及均衡的商業、訂閱、住宅、市政和工業客戶組合。此外，我們正在建立營運密度，這將有助於提高我們的收集營運效率。這些被收購的企業擁有完善的客戶和社區關係，為有機成長提供了巨大的機會，包括透過我們的資源解決方案產品。

There is potential for us to internalize more recycling volumes into our Mid-Atlantic recycling facility, while at the same time, using our targeted sales approach at larger industrial, institutional and multi-site commercial customers who demand heightened sustainability services. As always, our near-term focus is welcoming our new employees and customers to Casella while integrating the operations and systems to ensure a smooth transition.

我們有潛力將更多的回收納入我們的中大西洋回收設施，同時，對需要加強永續性服務的大型工業、機構和多地點商業客戶使用我們的有針對性的銷售方法。一如既往，我們近期的重點是歡迎新員工和客戶來到卡塞拉，同時整合營運和系統以確保平穩過渡。

Looking broadly at our M&A strategy, our acquisition pipeline remains very active with lots of opportunity in strategic areas across our 10 state footprint. Ongoing dialogues and diligence efforts sets us up well for potential additional acquisitions in late 2024 into early 2025.

縱觀我們的併購策略，我們的收購管道仍然非常活躍，在我們 10 個州的策略領域中存在大量機會。持續的對話和盡職調查工作為我們在 2024 年底至 2025 年初潛在的額外收購奠定了良好的基礎。

Turning to our development projects. Investment in our rail-served McKean, Pennsylvania landfill is nearly complete. We received our first test loads at the site in the second quarter that allowed us to test equipment, processes and conduct training. We have not included any incremental contribution from the site in our forecast or guidance. And as previously discussed, this site provides a solid long-term risk management strategy to preserve our flexibility in the Northeast.

轉向我們的開發專案。我們對賓州麥基恩鐵路垃圾掩埋場的投資已接近完成。我們在第二季在現場收到了第一批測試負載，這使我們能夠測試設備、流程並進行培訓。我們的預測或指導中並未包含該網站的任何增量貢獻。正如前面所討論的，該網站提供了可靠的長期風險管理策略，以保持我們在東北地區的靈活性。

As such, this won't be a meaningful driver of near-term volume growth, and the site will be operated under the same return-driven focus that we apply across all opportunities. An example of this return-driven focus is the continued strong performance of our Boston recycling facility. Results from the upgraded equipment at this facility are accretive to consolidated adjusted EBITDA and margins and clearly demonstrate our approach to sustainability investments being both environmentally and economically balanced.

因此，這不會成為近期銷售成長的有意義的驅動力，並且該網站將在我們應用於所有機會的相同回報驅動焦點下運作。這種以回報為導向的重點的一個例子是我們波士頓回收設施的持續強勁表現。此工廠設備升級的結果可增加綜合調整後的 EBITDA 和利潤，並清楚地表明我們的永續投資方法是環境和經濟平衡的。

We're excited about the technology and equipment upgrade at our Willimantic Connecticut recycling facility planned for the second half of 2024. We kicked off that project a few weeks ago, and we are evaluating other opportunities to advance our circularity infrastructure.

我們對康乃狄克州威利曼蒂克回收工廠計劃於 2024 年下半年進行的技術和設備升級感到興奮。我們在幾週前啟動了該項目，並且正在評估其他機會來推進我們的循環基礎設施。

Our RNG projects are also progressing. The facility at Juniper Ridge landfill faced some initial start-up delays from our third-party partner that has moved the opening date back to this fall. As a reminder, we have invested $0 into these projects, and we're receiving a royalty payment from the sale of gas and RINs, which we believe is the most appropriate risk-mitigating path for us.

我們的RNG專案也在進展中。Juniper Ridge 垃圾掩埋場的設施在初始啟動時遇到了第三方合作夥伴的一些延遲，我們已將開放日期推遲到今年秋天。提醒一下，我們在這些項目中投資了 0 美元，並且我們從天然氣和 RIN 的銷售中收到了特許權使用費，我們認為這對我們來說是最合適的風險緩解途徑。

Looking ahead, the three Waga led projects continue to advance with commercial operations expected in late 2025. Like John and the rest of our team, I would like to again welcome our new employees to Casella. We pride ourselves on our strong culture and our value system. We're very excited about the opportunities ahead to drive continued profitable growth and shareholder value.

展望未來，Waga 主導的三個項目將繼續推進，預計將於 2025 年底投入商業營運。就像約翰和我們團隊的其他成員一樣，我想再次歡迎我們的新員工來到卡塞拉。我們為我們強大的文化和價值體系感到自豪。我們對未來推動持續獲利成長和股東價值的機會感到非常興奮。

And with that, I'd like to turn it back to the operator for questions.

就這樣，我想把它轉回給接線生詢問問題。

(Operator Instructions). Tyler Brown, Raymond James.

（操作員說明）。泰勒布朗，雷蒙德詹姆斯。

Hi, good morning, guys.

嗨，早上好，夥計們。

Good morning.

早安.

Good morning, folks. Can we just start maybe talk a little bit about the $3 million in leachate. So I've been reading some articles about all the flooding in Vermont. So I'm assuming that that is the issue. But I just want to be clear, this wasn't systemically higher leachate costs because of PFAS?

早安，夥計們。我們可以開始談談價值 300 萬美元的滲濾液嗎？所以我讀了一些關於佛蒙特州洪水的文章。所以我假設這就是問題所在。但我只是想澄清一下，這不是因為 PFAS 導致滲濾液成本系統性地升高嗎？

No, not at all. Clearly, additional volume because of all of the wet weather affected on four of our facilities, Tyler. So very significant flooding in Vermont, a bit into New Hampshire and a bit in Maine. Less so in New Hampshire and Maine; very significant in Vermont and New Hampshire, more so.

不，一點也不。顯然，由於潮濕天氣影響了我們的四個設施，泰勒，產量增加。佛蒙特州發生了非常嚴重的洪水，新罕布夏州和緬因州也發生了一些洪水。新罕布夏州和緬因州的情況則不然；在佛蒙特州和新罕布夏州非常重要，更是如此。

A little in New York too.

紐約也有一點。

Yes. And a little upstate New York, where Clinton County facility as well. So, additional volumes because of the wet weather, and also a little bit further in transportation in some cases because of the amount that we had. We had to go to new facilities, different facilities.

是的。紐約州北部也有克林頓縣的設施。因此，由於天氣潮濕，運輸量增加了，而且在某些情況下，由於我們擁有的數量，運輸量也增加了一些。我們必須去新的設施，不同的設施。

Okay. Yes, that's very helpful. And then, Brad, if I look at the EBITDA, the guide moved up, I think, by $10 million or so. But you are obviously active on the M&A front, which I'm assuming will contribute in the back half. You did have the higher leachate cost. Seems like commodity prices are improving, though I know that's not a huge impact. But just, can you talk about or maybe bridge the $10 million increase? Was that effectively all from acquisitions or was there some core increase in there?

好的。是的，這非常有幫助。然後，布拉德，如果我看一下 EBITDA，我認為該指南上升了 1000 萬美元左右。但您顯然在併購方面很活躍，我認為這將在後半段做出貢獻。你的滲濾液成本確實較高。似乎大宗商品價格正在上漲，儘管我知道這並不是一個巨大的影響。但是，您能談談或彌補 1000 萬美元的成長嗎？這實際上全部來自收購還是其中有一些核心成長？

Yes, it's effectively all from acquisitions. We're more or less on track with our guidance prior to the acquisition. So I think for all intents and purposes, you can assume the $10 million is attributable entirely to the acquisitions, and that's a little less than six months' contribution, with one of the deals closing on July 1 and one closing on August 1.

是的，這實際上全部來自收購。我們或多或少符合收購前的指導方針。因此，我認為，無論出於何種意圖和目的，您都可以假設這1000 萬美元完全來自收購，這略低於六個月的貢獻，其中一筆交易於7 月1 日結束，另一筆交易於8 月1 日結束。

Okay. And then, just from a modeling perspective, just how much revenue should we expect from M&A in '24? And then basically, how much is already slated for '25.

好的。然後，僅從建模的角度來看，我們應該預期 24 年的併購收入有多少？然後基本上，25 年已經預訂了多少。

So, for these acquisitions that we've just announced, it's about $115 million of annual revenue. The $40 million of the increase in the guidance for this year is essentially the impact of those acquisitions. And so the rollover would be plus or minus would be the difference. Yeah.

因此，對於我們剛剛宣布的這些收購，年收入約為 1.15 億美元。今年指引中增加的 4000 萬美元本質上是這些收購的影響。因此，翻滾將會是正數或負數，這就是差異。是的。

Yes. Okay. Right. So, already have some rolling into '25. Okay, just maybe a little more , maybe a little more color on Whitetail and LMR. Can you talk a little bit. Ned, I think you touched on it, but can you talk about the revenue mix? What are they exposed to in collection? Do they have strong transfer assets? Do you plan to internalize both the recycling and the landfill waste?

是的。好的。正確的。所以，已經有一些進入 25 年了。好吧，也許白尾魚和 LMR 的顏色再多一點。你能講一點嗎？內德，我想你已經談到了這個問題，但是你能談談收入組合嗎？他們在收藏中接觸了什麼？他們是否擁有強大的轉讓資產？您是否計劃將回收廢棄物和垃圾掩埋廢棄物內部化？

Thanks, Tyler. Neither of them have transfer assets today. LMR is a business that's in Northwestern New Jersey, just across the border from our Pennsylvania operations. Some overlap, some adjacencies, well-mixed business. The real internalization opportunity will be getting recyclables into the recycling facility we acquired from GFL last year that we're in the process of upgrading as well.

謝謝，泰勒。他們今天都沒有轉移資產。LMR 是一家位於新澤西州西北部的企業，與我們賓州的業務部門隔鄰。有些重疊，有些相鄰，業務混雜。真正的內部化機會是將回收物放入我們去年從 GFL 收購的回收設施中，我們也正在進行升級。

Whitetail is a little bit more of a significant business. It's headed down towards Allentown, down towards Philadelphia area in the secondary market to operate across three operations and very well-run business across subscription, residential, municipal, commercial, industrial segments. It's been a fast-growing business that has a very good reputation in those markets, high-quality service.

白尾魚是一項更重要的業務。它在二級市場上向阿倫敦、費城地區進發，經營三個業務，並在訂閱、住宅、市政、商業、工業領域運作良好的業務。這是一家快速發展的企業，在這些市場中享有良好的聲譽和高品質的服務。

As we look to that business, once again, great opportunity to vertically integrate to our recycling operation in Pennsylvania. Short-term, we're not looking to internalize either of them from a waste standpoint, although mid-term, we could look to do so to McKean if we chose to. Both of them are more of extensions of the platform, some level of overlap and a continuation of the strategy we started last year.

當我們期待該業務時，再次這是垂直整合到我們在賓夕法尼亞州的回收業務的絕佳機會。短期來看，我們不打算從浪費的角度將它們中的任何一個內部化，但從中期來看，如果我們選擇的話，我們可以考慮對麥基恩這樣做。它們更多是平台的延伸，有一定程度的重疊，也是我們去年開始的策略的延續。

Okay, prefect. And my last one, there was a large transaction that was announced on Long Island by one of your peers. I'm just curious if there's any competitive dynamic that we should think about there? Does that hurt or help the C&D situation or just any thoughts there? Thanks guys.

好的，長官。我的最後一篇報導是，你們的一位同行在長島宣布了一項大型交易。我只是好奇我們是否應該考慮那裡的競爭動態？這對 C&D 的情況有傷害還是有幫助，或者只是有什麼想法？謝謝你們。

From a practical standpoint, we really weren't receiving any of the MSW from the principals in that transaction. So it's not any significance from a disposal standpoint?

從實際角度來看，我們確實沒有從該交易的委託人那裡收到任何城市固體廢棄物。那麼從處置的角度來看，這沒有任何意義嗎？

Yes. Almost all the MSW in Long Island goes to the burn plants, Covanta, facilities. And that transaction, they were bringing their C&D under very long-term agreement out to Ohio. So that was -- that doesn't really change the complexion of construction demo flows in the Northeast.

是的。長島的幾乎所有城市固體垃圾都進入了卡萬塔焚燒廠。在那次交易中，他們根據非常長期的協議將他們的 C&D 帶到了俄亥俄州。所以這並沒有真正改變東北地區建築展示流程的情況。

Okay, perfect. Thanks, guys.

好的，完美。謝謝，夥計們。

Thank you.

謝謝。

You're welcome, Tyler.

不客氣，泰勒。

Brian Butler, Stifel.

布萊恩巴特勒，斯蒂菲爾。

Good morning. Thank you for taking the question.

早安.感謝您提出問題。

Good morning.

早安.

On the deals, could you give a year-to-date spend on that? or do I need to wait till you report third quarter?

關於這些交易，您能透露一下今年迄今的支出嗎？或者我需要等到你報告第三季嗎？

Ned Coletta

內德·科萊塔

It's not something we're laying out this time. So, you'll see in our third quarter Q, the amalgamation of all acquisitions.

這不是我們這次要安排的事情。因此，您將在我們的第三季報告中看到所有收購的合併。

Okay. I guess maybe another way to ask is, when you look at the guidance kind of going up the $40 million and $10 million, so kind of an implied EBITDA margin of 25%. When you think of that rolling into 2025, how should we think about those margins improving as you integrate those assets?

好的。我想也許另一個問法是，當你看到指導意見增加了 4000 萬美元和 1000 萬美元時，隱含的 EBITDA 利潤率為 25%。當您考慮到 2025 年時，我們應該如何考慮隨著您整合這些資產而提高的利潤率？

Yes. Brian, it's Brad. So, the increase in guidance of $10 million and $40 million, that's predominantly the acquisitions, but not entirely. I would say the margins for the business is pre synergy are probably closer to 20%. And we'll, of course, look to work those up over time as we put in place our operating strategies and, where possible, get some synergies out of the overlap.

是的。布萊恩，是布萊德。因此，指導意見增加了 1000 萬美元和 4000 萬美元，這主要是因為收購，但並非全部。我想說，協同效應前該業務的利潤率可能接近 20%。當然，隨著時間的推移，我們會在製定營運策略時努力解決這些問題，並在可能的情況下，從重疊中獲得一些協同效應。

Okay. And then, maybe on the commercial side of the business on collection. Have you been seeing service intervals still outpacing service decreases?

好的。然後，也許是在收藏業務的商業方面。您是否發現服務間隔的速度仍然超過服務減少的速度？

Yes, we're absolutely continuing to see strength in the commercial side of the business. We have volume increases and our price remains quite strong across the entire business. It's probably the brightest spot in our entire collection business today. We really do differentiate ourselves with our offerings and continue to gain new business, especially with higher end, higher profile customers.

是的，我們絕對會繼續看到該業務商業的實力。我們的銷量有所增加，整個業務的價格仍然相當強勁。這可能是我們今天整個收藏業務中最亮點的。我們確實透過我們的產品讓自己脫穎而出，並不斷獲得新業務，尤其是高端、知名度較高的客戶。

Okay. And then, maybe one last one on modeling. When you think about the -- you talked about the tax rate being 35% for '24, but only $5 million in cash tax. What's the right way to think about '25 when it comes to NOLs that might be kind of rolling over and impacting the tax rate next year?

好的。然後，也許是關於建模的最後一篇。當你想到——你談到 24 年的稅率為 35%，但現金稅只有 500 萬美元。當涉及到可能會結轉並影響明年稅率的 NOL 時，思考 25 年的正確方法是什麼？

Yes. We're going to use up our pre-2017 NOLs this year, and then we're going to roll into our post 2017 tax law change NOLs starting next year. So, from a cash perspective, those are worked a little bit differently than the pre-2017 in that they only shield 80% of federal cash tax. So, all else being equal, we'll begin to pay federal cash tax probably next year, but at a relatively low level. Again, primarily shielded by the NOLs for several years after that.

是的。今年我們將用完 2017 年之前的 NOL，然後我們將從明年開始使用 2017 年稅法變更後的 NOL。因此，從現金角度來看，這些政策的運作方式與 2017 年之前略有不同，因為它們只封鎖 80% 的聯邦現金稅。因此，在其他條件相同的情況下，我們可能會在明年開始繳納聯邦現金稅，但水準相對較低。在此之後的幾年裡，主要受到 NOL 的保護。

But on the income statement, we'll revert more to the normalized.

但在損益表上，我們將更多地恢復到標準化。

Yes. So, on the income statement, 35% this year. I think as our pretax income continues to grow, that number will naturally kind of come down towards our statutory rate of 27%. Exactly where? It's too early to say for 2025. But 35% should be the high watermark from a book perspective.

是的。所以，在損益表上，今年是35%。我認為隨著我們的稅前收入持續成長，這個數字自然會下降到我們的法定稅率 27%。具體在哪裡？現在說 2025 年還為時過早。但從書籍的角度來看，35%應該是高水位線。

Okay, great. I'll get back into the queue. Thank you.

好的，太好了。我會回到隊列中。謝謝。

Thanks Brian.

謝謝布萊恩。

Jerry Revich, Goldman Sachs.

傑瑞·雷維奇，高盛。

Hi, this is Adam Bubes with Goldman Sachs. Good morning, everyone.

大家好，我是高盛的 Adam Bubes。大家早安。

Good morning.

早安.

Really strong growth in the quarter and looks like the M&A pipeline continues to be robust. Is it possible to sort of isolate the margin trajectory on the core legacy operations versus acquired businesses? I'm wondering if the price/cost spread looks different this quarter for your core operations versus acquired assets.

本季成長確實強勁，看起來併購管道持續強勁。是否有可能將核心遺留業務與收購業務的利潤軌跡區分開來？我想知道本季您的核心業務與收購資產的價格/成本價差是否有所不同。

Hey Adam, it's Brad. The price/cost spread for the existing business has been pretty consistent, over 100 basis points in the base business. In the acquired businesses, we intentionally take a more cautious and gradual approach with price increases. So the effect of our pricing programs is really felt in the base business.

嘿亞當，我是布萊德。現有業務的價格/成本差相當穩定，基礎業務超過 100 個基點。在收購的業務中，我們有意採取更謹慎和漸進的漲價方式。因此，我們的定價計劃的效果確實在基礎業務中感受到了。

One number that John mentioned in his prepared remarks that I think gives a good idea of the underlying margin trend that's happening in the business, kind of setting aside the one-time issues, I'll call it, we've had in the second quarter is the collection business was up, excluding acquisitions, 130 basis points on EBITDA margin year-over-year in the quarter. So that's very much the underlying trend as kind of the puts and takes come in over the top of it.

約翰在他準備好的發言中提到的一個數字，我認為它很好地了解了業務中正在發生的潛在利潤率趨勢，有點拋開一次性問題，我稱之為，我們在第二次遇到的問題本季收款業務成長（不包括收購），該季度 EBITDA 利潤率年增 130 個基點。因此，這很大程度上是潛在的趨勢，因為看跌期權和認購期權的出現超過了這一趨勢。

Got it. And then, how much of the lost C&D volumes this year do you expect to get back in 2025? Just conceptually, should we expect outsized volumes in 2025 as the competitor landfill comes offline?

知道了。那麼，您預計 2025 年能收回今年損失的拆建量多少？從概念上講，隨著競爭對手垃圾掩埋場的關閉，我們是否應該預期 2025 年的處理量會大幅增加？

I think from our vantage point, nothing ever shifts on a dime, but that capacity will be out of the market at Brookhaven and Long Island, and there will be less outlets to go to. So, some of our long-term customers who shifted to that site as they were looking to fill it up, we hope to get back into our system.

我認為，從我們的角度來看，不會有任何變化，但布魯克海文和長島的市場容量將消失，可供前往的商店也會減少。因此，我們的一些長期客戶在尋求填補該網站時轉移到該網站，我們希望回到我們的系統。

As with everything, transportation is always the complexity to establish transportation lanes and get that waste back. So, right now, it's a little early to say if it ramps Q1 or through the spring, but we're hopeful that those volumes do return to us in a headwind of May.

與所有事情一樣，運輸始終是建立運輸通道和回收廢物的複雜問題。因此，現在說它是否會在第一季或整個春季增加還為時過早，但我們希望這些銷量能夠在五月的逆風中回歸。

And then, one last one on margins. It looks like normal seasonality is for margins to be up 160 basis points 3Q versus 2Q, given the unexpected expense items in 2Q, should we be expecting margins to be 80 basis points ahead of normal seasonality in 3Q as those rolls off? I know there could be some other moving pieces with McKean, Willimantic. So, any puts on the sequential margin trajectory?

然後，最後一張在邊緣。看起來正常的季節性因素使第三季的利潤率比第二季高出160 個基點，考慮到第二季的意外支出項目，隨著這些費用的減少，我們是否應該預期第三季的利潤率將比正常季節性因素高80 個基點？我知道麥基恩、威利曼蒂克可能還有其他一些感人的作品。那麼，連續保證金軌跡上有任何看跌期權嗎？

Yes. I would say there's two things going on that I would highlight. One is the point you made. We had a couple of "onetime items" in the second quarter that Q2 to Q3, that should help the sequential margin trend. But then, overall, kind of taking a step back, the mix of the business is shifting geographically, where as we move down the Eastern Seaboard, the business is going to have less seasonality to it. It's going to have relatively more collection relative to landfill.

是的。我想說有兩件事我要強調。一是你提出的觀點。我們在第二季（第二季到第三季）有幾個“一次性項目”，這應該有助於連續利潤率趨勢。但總體而言，退一步說，業務組合正在發生地理上的變化，當我們沿著東海岸移動時，業務的季節性將會減少。相對於垃圾掩埋場，它將有相對更多的收集量。

And then those factors will lead to a smoother quarter-to-quarter margin trend than we've seen historically. So, exactly how that plays out, it's probably hard to predict for this third quarter. It's hard for you to predict for this third quarter. But those are really the two kinds of factors as you think about it.

然後，這些因素將導致季度利潤率趨勢比我們歷史上看到的更加平穩。因此，具體情況如何，可能很難預測第三季的情況。您很難預測第三季的情況。但仔細想想，這確實是兩個因素。

Thanks so much.

非常感謝。

Stephanie Moore, Jefferies.

史蒂芬妮·摩爾，杰弗里斯。

Hi. Good morning. Thank you. I was hoping you could touch a bit on maybe some of the inflationary pressures that you're seeing and how that's trended as the year has progressed, you know labor trends, repair, maintenance and the likes of that as well as maybe some of the other self-help initiatives that you have in place that are helping to offset some of the cost pressures? Thanks.

你好。早安.謝謝。我希望你能談談你所看到的一些通貨膨脹壓力，以及隨著這一年的進展，這種壓力的趨勢如何，你知道勞動力趨勢、修理、維護等，以及可能的一些您也採取了哪些其他自助措施來幫助抵銷部分成本壓力？謝謝。

Great. So, I think inflation has been a little stickier than we had predicted at the beginning of the year. And we're seeing trends, generally, flattish through the spring, not decreasing. What we're seeing inflation hang north of 5% roughly in our business. We have seen labor tail off a bit over the last year plus, and we've seen a lot of stability in our labor force and our training programs, our recruiting programs, everything we're doing to try to attract great people to our organization are helping there.

偉大的。因此，我認為通膨比我們年初的預測有點棘手。我們看到整個春季的趨勢總體上持平，而不是下降。我們看到我們業務的通膨率大約在 5% 以上。在過去的一年多里，我們看到勞動力有所減少，我們的勞動力、我們的培訓計劃、我們的招聘計劃以及我們為吸引優秀人才加入我們組織而所做的一切都保持了很大的穩定性正在那裡提供幫助。

And the fight for talent does seem to be a little bit lower today. But there are some areas that are really quite sticky. On the maintenance side, parts, tires, outside repairs. On the landfill side, almost everything to do with landfills, especially on the capital side we've seen heightened inflation remain into the business.

如今，人才爭奪戰似乎確實少了一些。但有些領域確實很黏。在維修方面，包括零件、輪胎、外部維修。在垃圾掩埋場方面，幾乎所有與垃圾掩埋場有關的事情，特別是在資本方面，我們看到通膨加劇仍然存在於業務中。

As we've talked about a lot of times in the past, so, we can be nimble from a pricing standpoint as an organization. And as we look at these inflation trends through this spring, they are a little bit higher than we expected, and we're starting to course correct on certain segments of the business with our pricing programs and advancing a bit more price to the second half of the year, which we hope gets that spread a little bit stronger through the last five months of the year.

正如我們過去多次討論過的那樣，作為一個組織，我們可以在定價方面保持靈活性。當我們審視今年春天的這些通膨趨勢時，它們比我們預期的要高一些，我們開始透過我們的定價計劃來糾正業務的某些部分，並將價格提高到下半年年度最佳，我們希望在今年最後五個月傳播得更加強勁。

Great. Appreciate the color. And then, maybe switching to your recycling business. You have a pretty robust recycling operations. I was curious if you're contemplating any investments or potential expansions, just given the potential of maybe EPR being implemented in certain states within the Northeast? Or if you've kind of contemplated any changes to your recycling business. Does, in fact, go into effect?

偉大的。欣賞顏色。然後，也許轉向你的回收業務。你們有相當強大的回收業務。我很好奇，考慮到 EPR 可能在東北部某些州實施，您是否正在考慮任何投資或潛在的擴張？或者，如果您考慮對回收業務進行任何更改。事實上，會生效嗎？

So, a couple of things there. I think that from a practical standpoint, we continue to invest in the infrastructure, similar to what we did in Boston. Higher quality, more significant throughput. We're doing the same thing with our Willimantic facility, and then we'll be doing the same retrofit of our facility in Pennsylvania as well.

所以，有幾件事。我認為從實際角度來看，我們會繼續投資基礎設施，就像我們在波士頓所做的那樣。更高的質量，更顯著的吞吐量。我們正在對 Willimantic 工廠做同樣的事情，然後我們也將對賓州的工廠進行相同的改造。

So, we'll continue to invest in the infrastructure. As the government relations side of the business really understands what the drivers are going to be from an EPR standpoint, each state is somewhat different. There's a little bit of activity in a couple of states now and government relations will continue to stay abreast of what's going on there. And certainly, we'll be involved in trying to help shape that.

因此，我們將繼續投資基礎設施。由於企業的政府關係方面真正了解從 EPR 的角度來看驅動因素是什麼，因此每個州都有些不同。現在有幾個州有一些活動，政府關係將繼續了解那裡正在發生的事情。當然，我們將參與努力幫助塑造這一點。

Yes. And I think from a public policy standpoint, we would like to see more recycled content. Legislation versus EPR, that there has been 30-plus years of substantial investment in recycling infrastructure across the country and Casella has invested significantly. So, setting up parallel recycling systems really don't yield a lot of benefit.

是的。我認為從公共政策的角度來看，我們希望看到更多回收的內容。立法與 EPR 相比，30 多年來，全國各地對回收基礎設施進行了大量投資，卡塞拉也進行了大量投資。因此，建立並行回收系統確實不會產生太多好處。

We've seen that over the years in bottle bill states. You're really just creating a new tax on society versus driving additional sustainability or circularity. So, from our vantage point, I think the recycled content movement is much more exciting. It could have a very positive impact on the industry, additional investment in, really the environment, which is what we're all trying to do.

多年來我們在瓶裝法案州已經看到了這一點。你實際上只是在對社會徵收新的稅，而不是推動額外的永續性或循環性。因此，從我們的角度來看，我認為回收內容運動更加令人興奮。它可能會對產業、對環境的額外投資產生非常正面的影響，這也是我們都在努力做的事情。

Really helpful. Makes sense. Thanks, guys.

真的很有幫助。有道理。謝謝，夥計們。

Thank you. You're welcome.

謝謝。不客氣。

Faiza Alwy, Deutsche Bank.

Faiza Alwy，德意志銀行。

Hi. Good morning. Thank you so much.

你好。早安.太感謝了。

Good morning.

早安.

So, I wanted to ask about C&D volumes, right? You've mentioned the impact from the landfill closures. I'm curious if there is also a macro overlay, because a bunch of the other companies have been talking about soar volumes generally. So, just curious if you're seeing a macro impact there as well and if volumes were essentially in line with your expectations?

所以，我想問一下 C&D 數量，對吧？您提到了關閉垃圾掩埋場的影響。我很好奇是否還有宏觀疊加，因為其他許多公司一直在談論銷售的飆升。那麼，只是好奇您是否也看到了宏觀影響以及交易量是否基本上符合您的預期？

So, the Northeast is predominantly a lot, we rely a lot less upon construction activity as a business. We don't see the big ebbs and flows when boom busts from construction. We're usually a bit more slow and steady.

因此，東北地區占主導地位，我們對建築活動的依賴要少得多。當建築業繁榮衰退時，我們看不到大起大落。我們通常會更加緩慢和穩定。

With all that being said, we have seen less spending on large construction projects, infrastructure projects in the Northeast. And it's probably showing up a little bit more in the special waste streams, where we see large contaminated soil projects, cleanup projects just down for the last 12 to 18 months.

話雖如此，我們發現東北地區大型建設項目、基礎建設項目的支出減少。它可能更多地出現在特殊廢物流中，我們看到大型受污染土壤項目和過去 12 到 18 個月剛停工的清理項目。

They can be a little timing sometimes is hard to predict, and our pipeline remains really robust where there's a number of projects out there that are funded and just waiting to start and we haven't seen initiate over the last six plus months. So there is some built-up demand there. It feels like with some of the slowing of the economy and just uncertainty in the economy, some of those projects have not started. But as I said earlier, we've consciously, over the last decade, tried to remix our business to have less construction and demolition exposure.

有時很難預測它們的時機，但我們的管道仍然非常強勁，有許多項目已獲得資助，正在等待啟動，但在過去的六個多月裡我們還沒有看到啟動。所以那裡有一些累積的需求。感覺由於經濟放緩和經濟不確定性，其中一些項目尚未啟動。但正如我之前所說，在過去十年中，我們有意識地嘗試重新組合我們的業務，以減少建築和拆除風險。

So, we have less in our hauling business today. We have less at our landfills, our transfers. So, yes, it's been a bit of a headwind, but it's definitely not something that we're trying -- that we see as much volatility as you can in other parts of the country.

因此，我們今天的運輸業務較少。我們的垃圾掩埋場和轉運站的垃圾越來越少。所以，是的，這有點逆風，但這絕對不是我們正在嘗試的事情——我們看到了與該國其他地區一樣多的波動。

Great. Thank you. And then just you mentioned sort of efficiency initiatives, and you mentioned how you're sort of more excited about that given the M&A. So give us a sense of how quickly can you roll through those initiatives within M&A? Maybe we can imagine what the margins might be given your guide on the sales and EBITDA on the new acquisitions, but how quickly can you implement some of those initiatives and get move on.

偉大的。謝謝。然後您提到了一些效率舉措，您也提到了考慮到併購，您對此感到更加興奮。那麼請讓我們了解一下您能以多快的速度實施這些併購措施？也許我們可以想像一下新收購的銷售和 EBITDA 指南的利潤率是多少，但是您能多快實施其中一些舉措並繼續前進。

Normally, those synergies really come over a couple of year period of time. In a lot of cases, there are contracts in place from a disposal standpoint that have to run their course. There are other organizational agreements in place from a vendor perspective, et cetera, et cetera. So it begin to see a bit in the first 12 months, but it'll be a 2-year period of time for the majority of the synergies to come in.

通常情況下，這些協同效應確實需要幾年的時間才能實現。在許多情況下，從處置的角度來看，已經簽訂的合約必須依其規定進行。從供應商的角度來看，還有其他組織協議等等。因此，在前 12 個月內就會開始看到一些效果，但大部分協同效應將需要 2 年的時間才能顯現出來。

And delays in truck deliveries are definitely weighing on our ability to get synergies at the pace we want. But we're trying to do as much as we can through some of our vendor relationships. But, say in the mid-Atlantic, we're on track with our model, with the assets we purchased, businesses from GFL last year.

卡車交付的延誤肯定會影響我們以我們想要的速度獲得協同效應的能力。但我們正在嘗試透過一些供應商關係盡我們所能。但是，比如說在大西洋中部，我們的模式、去年從 GFL 購買的資產和業務正在走上正軌。

But we could be even a little further along if we've gotten some of our automated side load trucks, and we can start to deploy more efficiency into that market. It will come over time, and we've got great opportunities. But it'd be nice to be able to get truck deliveries a little faster.

但如果我們擁有一些自動化側載卡車，我們可能會走得更遠，並且我們可以開始在該市場上部署更高的效率。隨著時間的推移，它會到來，我們有很好的機會。但如果能讓卡車送貨速度更快一點就好了。

Great. Thank you. Appreciate it.

偉大的。謝謝。欣賞它。

You're welcome.

不客氣。

Michael Feniger, Bank of America.

麥可費尼格，美國銀行。

Hi, guys. Thank you for taking my questions. I know you touched on it. Do you mind just giving us a sense of where you think the leverage ends this year? And just with such an active pipeline, Ned, can you kind of talk to us about, is it more on the smaller tuck-in side, larger? Just any context there would be helpful.

嗨，大家好。感謝您回答我的問題。我知道你接觸過它。您介意讓我們了解一下您認為今年槓桿率的結束情況嗎？就這樣一個活躍的管道，內德，你能和我們談談，它是在較小的一側，還是在更大的一側？任何上下文都會有幫助。

Yes. So, the pipeline kind of spans many different opportunities from excellent tuck-ins, several million dollars to tens of million dollars of revenue in existing markets to additional adjacencies that will either drive the expansion of the platform or maybe even some level of vertical integration. So there's a wide mix of opportunities that we're working on.

是的。因此，管道涵蓋了許多不同的機會，從現有市場中的出色收入、數百萬美元到數千萬美元的收入，到額外的鄰接關係，這些鄰接關係要么推動平台的擴張，甚至可能推動某種程度的垂直整合。因此，我們正在努力尋找各種各樣的機會。

As always, we never guide to acquisitions we haven't completed yet. As we said earlier, there's a few things we're working on right now that could potentially cross later this year into next year, but it's a little early to claim success on any of them. It's always a lot of work to get to the point.

一如既往，我們從不指導尚未完成的收購。正如我們之前所說，我們現在正在研究的一些事情可能會在今年稍後延續到明年，但現在宣稱其中任何一項取得成功還為時過早。要達到目的總是需要做很多工作。

No, we just did.

不，我們剛剛做到了。

Yes, we just did have too. Yes, it's good point, John. I mean that was a lot of months of work and really excellent. I think, Brad, you said pro forma, where we at leverage-wise?

是的，我們也有過。是的，這是個好觀點，約翰。我的意思是，這是很多個月的工作，而且非常出色。我想，布拉德，你說的是準備考，我們的槓桿水平在哪裡？

Yes, we're about 2.9x pro forma. So, it's difficult to predict, obviously, where we'll be by year-end because it's going to be a function of the M&A activity. But the company has been very clear over a long period of time on how we intend to manage the balance sheet. We intend to keep leverage. It may go over a short period of time, but over time, we're going to look to keep leverage in the area of 3x or below.

是的，我們的預期成長率約為 2.9 倍。因此，顯然很難預測到年底我們會處於什麼位置，因為這將取決於併購活動。但公司長期以來一直非常清楚我們打算如何管理資產負債表。我們打算保持槓桿率。它可能會持續很短的一段時間，但隨著時間的推移，我們將尋求將槓桿率保持在 3 倍或以下。

That remains the plan. We used some of the dry powder, certainly to close LMR and Whitetail. But, as I mentioned, we still have some dry powder available for the next deal that come up in the pipeline. So, we're in a good position to keep executing on what's in front of us.

這仍然是計劃。我們使用了一些乾粉，當然是為了接近 LMR 和白尾魚。但是，正如我所提到的，我們仍然有一些乾粉可用於即將進行的下一筆交易。因此，我們處於有利位置，可以繼續執行我們面前的任務。

That's helpful. And just with you guys doing these acquisitions in growth mode, I'm curious, I'm not asking for a guide on 2025, but do you feel like your CapEx intensity, is it going up as you guys kind of are building out this footprint and have projects? Just directionally, kind of wondering on that CapEx.

這很有幫助。就你們以成長模式進行這些收購而言，我很好奇，我不是要求 2025 年的指南，但你們覺得你們的資本支出強度是否會隨著你們的建設而上升？ 足跡和有項目嗎？只是定向地，有點想知道資本支出。

It's Brad, setting aside the upfront CapEx that we isolate in the non-GAAP metric, setting that aside, over time, the CapEx intensity of the business actually should come down. And I alluded to this earlier, some of the changes with the shifting mix of the business. And as we're growing geographically, we're predominantly acquiring collection businesses. And so, those have much less capital intensity than the landfills. So, over time, as whatever your chosen metric percentage of revenue, you'll see the CapEx trend lower.

布拉德，拋開我們在非公認會計準則指標中隔離的前期資本支出，拋開這一點，隨著時間的推移，業務的資本支出強度實際上應該會下降。我之前提到過，隨著業務組合的變化而發生的一些變化。隨著我們地域的擴張，我們主要收購收藏業務。因此，這些掩埋場的資本強度比垃圾掩埋場低得多。因此，隨著時間的推移，無論您選擇的收入指標百分比是什麼，您都會看到資本支出趨勢較低。

And one of the things we try to do when we buy businesses within our business plan is execute pretty quickly as we can to get fleet upgrades, facility upgrades, other areas like that. So, it is always a little heightened. All those upgrades are always considered in our pro formas, and we try to give visibility on them as well on our financials.

當我們在業務計劃中購買業務時，我們嘗試做的事情之一就是盡可能快地執行，以實現機隊升級、設施升級以及其他類似領域。所以，它總是有點高。所有這些升級都會在我們的預估中予以考慮，並且我們會盡力在我們的財務狀況中提供這些升級的可見性。

Perfect. And just lastly, like the price versus cost spread, I think you talked about that 100 bps. I mean, just a kind of bigger picture, as we're going to maybe next year, do you think to maintain that? Have to push a little bit more on price because we're not seeing that cost deflation yet? Or do you see some buckets where you maintain that spread because you're looking at your cost profile and you see actually either comp-wise or the trend is that you are starting to see maybe some deflation as we start going into 2025?

完美的。最後，就像價格與成本價差一樣，我想您談到了 100 個基點。我的意思是，只是一種更大的圖景，就像我們明年可能會做的那樣，你認為會維持這一點嗎？因為我們還沒看到成本通貨緊縮，所以必須進一步提高價格嗎？或者你是否看到一些保持這種利差的桶，因為你正在查看你的成本概況，你實際上看到要么是比較方面的，要么趨勢是，當我們開始進入2025 年時，你可能開始看到一些通貨緊縮？

Yes. So, the cost has been stable. They came down materially over the last 18 months and in the last six months, it's been stable but a little bit higher than we had budgeted. And I've said this earlier but I'll repeat it, we have a lot of flexibility from pricing fees in our book of business, and we really took a good hard look this spring, did our pricing programs match where inflation was in the business and did we need any course corrections?

是的。所以說，成本一直是穩定的。在過去 18 個月中，它們大幅下降，在過去 6 個月中，它一直穩定，但略高於我們的預算。我之前已經說過，但我會再說一遍，我們的業務範圍內的定價費用有很大的靈活性，今年春天我們確實認真審視了我們的定價計劃是否與通脹水平相匹配。路線修正嗎？

And we're really lucky in that regard. We're not just dependent upon CPI linked metrics and contracts. We can be very flexible and nimble. And late in the second quarter, early into the third quarter, we did course correct a little bit with some of our pricing programs for later in the year because we thought we are -- our inflation metric was slightly higher than we had expected. So, we expect that spread to actually increase a little bit into the second half of the year right now.

在這方面我們真的很幸運。我們不僅僅依賴與消費者物價指數相關的指標和合約。我們可以非常靈活、敏捷。在第二季末、第三季初，我們確實對今年稍後的一些定價計畫進行了一些修正，因為我們認為我們的通膨指標略高於我們的預期。因此，我們預計這種利差實際上會在今年下半年增加。

Perfect. Thank you.

完美的。謝謝。

Thank you.

謝謝。

(Operator Instructions). Tyler Brown, Raymond James.

（操作員說明）。泰勒布朗，雷蒙德詹姆斯。

Hi. Thanks for the follow-up here. This is actually, kind of goes back to Michael's question a little bit around CapEx. And it's a little bit on the cash flow add-backs. So I totally get why you add them back, but they are cash out the door. And I mean, next year, shouldn't most of those add-backs kind of fall off, like the FLSA payment, Southbridge, McKean, the veneer failure. Maybe some of the acquisition spend stays in there, but shouldn't the quantum of those add backs start to go down?

你好。在此感謝您的關注。這實際上有點回到了邁克爾關於資本支出的問題。這對現金流有一點補充。所以我完全明白為什麼你把它們加回來，但它們是現金。我的意思是，明年，大多數附加項目不應該會下降嗎，例如 FLSA 付款、南橋、麥基恩、單板故障。也許有些收購支出會留在那裡，但這些回加的金額不應該開始下降嗎？

Yes. I mean, you listed some of the add-backs. Those will not recur, certainly. I think as the company is acquisitive and continues to grow, we'll be making upfront capital expenditures that we'll continue to categorize the way we have as post-acquisition CapEx. So, where that comes out for 2025 will be a function of the acquisition activity.

是的。我的意思是，您列出了一些附加內容。當然，這些不會再發生。我認為，隨著公司不斷收購並持續成長，我們將進行前期資本支出，我們將繼續將其歸類為收購後資本支出。因此，2025 年的結果將取決於收購活動。

Where we sit today, certainly, though on that line in particular, I would expect that number to be materially lower in 2025 than it was this year. Just with GFL and the Willimantic MRF retrofit is in that number. So, it is a chunkier number certainly this year than we might expect going forward.

當然，我們今天所處的位置，特別是在這條線上，我預計 2025 年這個數字將大大低於今年。僅 GFL 和 Willimantic MRF 改造就是這個數字。因此，今年的數字肯定比我們預期的要大。

Yes. I'm not the brightest guy. So, what is the difference between the $46.5 million of acquisition CapEx and the $17 million of cash outlays from acquisition activities?

是的。我不是最聰明的人。那麼，4,650 萬美元的收購資本支出和 1,700 萬美元的收購活動現金支出有什麼差別呢？

Oh, yes. So, a little definitional topic here. So, the CapEx for acquisitions is, just like it sounds. It's new trucks. It's the Willimantic MRF as I said. It's facilities and things like that. The cash outlays for acquisitions are the acquisition expenses, so legal, due diligence, rebranding, things like that. That's just the cash outlay associated with that P&L expense.

哦是的。所以，這裡有一個定義性的話題。因此，收購的資本支出就像聽起來一樣。這是新卡車。正如我所說，這就是 Willimantic MRF。就是設施之類的。收購的現金支出就是收購費用，包括法律、盡職調查、品牌重塑等。這只是與損益費用相關的現金支出。

Okay. And then, John, on Southbridge, is there any update there? Is there any chance of a reopening of that site?

好的。那麼，約翰，關於南橋，有什麼更新嗎？網站有重新開放的機會嗎？

I would say no, Tyler. I think that we're in the process and have closed that site out. And I would not anticipate anything coming back at Southbridge.

我會說不，泰勒。我認為我們正在處理中，並且已經關閉了該網站。我預計南橋不會有任何回報。

Okay. Okay. Thought that was maybe an outside chance at one point. And then last thing, Ned. So, I just get asked this question quite a bit. But are you guys seeing any impact from increased, let's call it, takeaway capacity in the market via rail? I mean it sounds like rail volumes really are ramping up at some of your competitors. But then again, it sounds like a lot of those are internal tons. But I'm just curious if you're seeing any impact on the fight for tons. And it sounds like you're holding the line on price, but just any broader thoughts about that dynamic?

好的。好的。一度認為這可能是外在機會。最後一件事，內德。所以，我常被問到這個問題。但是，你們是否看到了市場上鐵路外送能力增加的影響？我的意思是，聽起來你們的一些競爭對手的鐵路運量確實在增加。但話又說回來，聽起來很多都是內部的。但我只是好奇你是否看到了對大量戰鬥的影響。聽起來你對價格持保留態度，但對這種動態有什麼更廣泛的想法嗎？

Yes. So, as capacity comes out of the market, it will never be linear, right? So -- I mean, everyone is looking for it in their crystal ball, trying to predict what will happen in the future. And as you're well aware, there are several sites that will absolutely close in the next several years across Northeast. And there are several sites and there is some great risk they may close. So there are a couple of competitors in the marketplace who have been ramping up rail capacity coming out of the Northeast, whether it be to Ohio or to the Southern U.S.

是的。因此，隨著產能退出市場，它永遠不會是線性的，對吧？所以——我的意思是，每個人都在水晶球中尋找它，試圖預測未來會發生什麼。如您所知，東北地區有幾個站點將在未來幾年內絕對關閉。而且有幾個網站，它們可能會關閉，風險很大。因此，市場上有一些競爭對手一直在增加來自東北部的鐵路運力，無論是通往俄亥俄州還是美國南部。

And I would say in the recent past, that has weighed on volumes in the Northeast. Now, when you look to the next couple of years, it probably doesn't because there's a lot of risk of additional capacity coming out of the market, much of the reason why we built up McKean. But it's not affecting our pricing. It's really not greatly affecting us losing tons. MSW has been very stable at our sites. So, we haven't been growing on it either.

我想說的是，最近，這對東北地區的銷售造成了壓力。現在，當你展望未來幾年時，情況可能不會這樣，因為市場上有大量額外產能的風險，這也是我們建立麥基恩的主要原因。但這並不影響我們的定價。這對我們損失大量資金確實沒有太大影響。我們工廠的都市固體廢棄物一直非常穩定。所以，我們也沒有在這方面成長。

It's something more of a C&D. C&D impact more than MSW.

這更像是一種 C&D。拆建工程的影響大於都市固體廢棄物。

Yes. But it's definitely, as some additional capacity has come online, looking to the future, some of that waste has been moving out of the Northeast. It's taken a tiny bit of pressure off the system in the near term. But you look out over the next couple of years and there could be a lot of pressure still, depending upon which sites stay open and close.

是的。但可以肯定的是，隨著一些額外產能的上線，展望未來，一些廢棄物已經從東北地區轉移出去。它在短期內減輕了系統的一點壓力。但展望未來幾年，可能仍會面臨很大的壓力，這取決於哪些網站保持開放和關閉。

Yes, perfect. Okay, thank you so much, guys.

是的，完美。好的，非常感謝你們，夥計們。

Thank you.

謝謝。

You're welcome.

不客氣。

Timna Tanners, Wolfe Research.

蒂姆納坦納斯，沃爾夫研究。

Hi, good morning, and happy Friday.

你好，早安，週五快樂。

Good morning, Timna.

早安，提姆納。

So, wanted just a little bit more detail. You expanded on a little bit in the script, some commercial strategies maybe it's just the normal mix improvements from shedding, but I didn't know if there was anything a little bit new there about continuing to look for better mix and holding on pricing, if that was new and incremental or just the same. And similar questions on going after the larger industrial customers, if that's new and a little bit more detail on that?

所以，想要更多細節。你在劇本中擴展了一點，一些商業策略也許這只是脫落帶來的正常混合改進，但我不知道是否有任何關於繼續尋找更好的混合和保持定價的新東西，如果這是新的和增量的，或只是相同的。關於追求更大的工業客戶的類似問題，是否是新的並且對此有更多細節？

I think that, clearly, our perspective about the Mid-Atlantic is there's a significant opportunity there, Timna, to take our resource solutions group into the industrial accounts. There is nice opportunity there from a growth standpoint in terms of providing waste and recycling services for some of those larger organizations that are trying to drive sustainability within their organizations.

我認為，顯然，我們對大西洋中部的看法是，蒂姆納，那裡有一個重大機會，可以將我們的資源解決方案團隊納入工業帳戶。從成長的角度來看，為一些試圖推動組織內部永續發展的大型組織提供廢棄物和回收服務是一個很好的機會。

Our team is really well positioned for that, and there is significant opportunity in the Mid-Atlantic. I think, as Ned said before, some of the mix change, and Brad, is natural because of the Mid-Atlantic being more driven from a collection recycling standpoint as opposed to disposals.

我們的團隊在這方面確實處於有利地位，並且大西洋中部地區存在著巨大的機會。我認為，正如內德之前所說，一些混合變化和布拉德是很自然的，因為大西洋中部更多地是從收集回收的角度而不是處置的角度出發的。

So, on an overall basis, we're very comfortable in the Mid-Atlantic. There's substantial amount of disposal capacity in that market. I think there's 12 facilities that are in that market currently. So, the natural mix is going to change a little bit because of that.

因此，總體而言，我們在大西洋中部感到非常舒適。該市場有大量的處置能力。我認為目前該市場上有 12 個設施。因此，自然的組合將會因此而發生一些改變。

And you see it again this quarter, we traded price for volume in the subscription residential segment. We continue to see quality, density in our market. So the profitability margins continue to improve there. So, it's the right decision-making in that segment. But we are winning, to John's point, like in segments like institutional colleges and universities, large industrial...

這個季度你會再次看到這一點，我們在訂閱住宅領域以價格換取銷量。我們繼續看到市場的品質和密度。因此，那裡的利潤率繼續提高。因此，這是該領域的正確決策。但在約翰看來，我們正在贏得勝利，就像在機構學院和大學、大型工業一樣...

Medical centers.

醫療中心。

Medical centers, these really complex accounts that require differentiated services and really are seeking to even have kind of like a consulting approach where they have sustainability plans, circularity goals, and they're really partnering with our team to try to change some of their process and make the right investments. That's one area we win really well. We're not winning on low cost, we're winning on service.

醫療中心，這些非常複雜的客戶需要差異化的服務，並且實際上正在尋求一種類似諮詢的方法，他們有可持續發展計劃、循環目標，並且他們確實與我們的團隊合作，試圖改變他們的一些流程並做出正確的投資。這是我們贏得非常好的一個領域。我們不是靠低成本取勝，而是靠服務取勝。

Okay. That's helpful color. And then just a quick one to follow up on the M&A question. Are you seeing any changes in what potential targets with the price that they want and the multiple that they're looking for? Thanks again.

好的。這是有用的顏色。然後快速跟進併購問題。您是否發現潛在目標的價格和倍數有任何變化？再次感謝。

I don't think that there's any changes. I think that multiples have been full multiples for, I would say, the last two years. But I wouldn't characterize it as a change from where things have been. Multiples have been full for at least two years now, 1.5 years to two years. No real change there.

我不認為有任何改變。我認為過去兩年的倍數已經是完整的倍數。但我不會將其描述為對現狀的改變。倍數現在已經滿了至少兩年，1.5年到兩年。那裡沒有真正的改變。

I think that the one thing that is very interesting for us is the number of opportunities that we have is very significant. There's an awful lot of activity still, even with the growth that we've had over the last year, 1.5 years. there's still a significant amount of opportunity out there. And each time we go and look at our pipeline, it seems like the numbers don't change much in terms of the total opportunity that we're looking at.

我認為對我們來說非常有趣的一件事是我們擁有的機會非常多。儘管我們在過去一年（1.5 年）中取得了成長，但仍然有大量的活動。那裡仍然存在大量機會。每次我們去查看我們的管道時，就我們正在尋找的總機會而言，這些數字似乎並沒有太大變化。

Interesting. Okay. Thanks again.

有趣的。好的。再次感謝。

You're welcome.

不客氣。

I show no further questions in the queue at this time. I would now like to turn the call back over to John Casella for closing remarks.

目前我在隊列中沒有顯示任何其他問題。現在我想將電話轉回給約翰·卡塞拉（John Casella），他將發表結束語。

Thank you for joining us this morning. Hope you have a great weekend and look forward to discussing our third quarter 2024 earnings this fall. Thanks, everybody, and have a great weekend. Thank you.

感謝您今天早上加入我們。希望您週末愉快，並期待今年秋天討論我們 2024 年第三季的收益。謝謝大家，祝週末愉快。謝謝。

This does conclude today's conference call. Thank you for participating. 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。