FirstService Corp (FSV) 2025 Q1 法說會逐字稿

Welcome to the First quarter investor conference call. Today's call is being recorded.

歡迎參加第一季投資者電話會議。今天的通話正在錄音。

[operator instruction]

[操作員指令]

Legal counsel require us to advise that the discussion scheduled to take place today may contain forward-looking statements that involve known and unknown risks and uncertainties. Actual results may be materially different from any future results, performance, or achievements complicated in the forward-looking statements. Additional information concerning factors that could cause actual results. To differ materially from those in the forward-looking statements it contained in the company's annual information form as filed with the Canadian Securities Administrators and in the company's annual report on Form 40 as filed with the US Securities and Exchange Commission. As a reminder, today's call is being recorded. Today is April 24, 2025. I would now like to send the call over to the Chief Executive Officer. This is Scott Patterson. Please go ahead, sir.

法律顧問要求我們告知，今天計劃進行的討論可能包含涉及已知和未知風險和不確定性的前瞻性陳述。實際結果可能與前瞻性陳述中所述的任何未來結果、績效或成就有重大差異。有關可能導致實際結果的因素的附加資訊。與公司向加拿大證券管理局提交的年度資訊表和向美國證券交易委員會提交的 40 號表格年度報告中的前瞻性陳述存在重大差異。提醒一下，今天的通話正在錄音。今天是2025年4月24日。我現在想把電話轉給執行長。這是史考特·帕特森。先生，請繼續。

Thank you, Olivia. Good morning, everyone. Thank you for joining our Q1 conference call. We reported solid results this morning that we're very pleased with in the current environment. I'll provide a high-level review and touch on some of the highlights. And then pass to Jeremy Rakusin for a more in-depth discussion of the results. Total revenues were up 8% over the prior year driven primarily by tuck under acquisitions over the last 12 months. Organic growth was slightly positive, with gains at First Service residential, largely offset by a modest decline across the First Service Brands division. EBITDA for the quarter was up 24%, reflecting a strong 110 basis point improvement in our consolidated margin. A number of our brands showed margin improvement. Jeremy will walk through the detail in a few minutes. Finally, our earnings per share for the quarter were up an impressive 37%.

謝謝你，奧莉維亞。大家早安。感謝您參加我們的第一季電話會議。我們今天早上報告了可靠的結果，在當前環境下我們對此感到非常滿意。我將提供高層次的評論並談及一些亮點。然後交給 Jeremy Rakusin 對結果進行更深入的討論。總收入比前一年增長了 8%，主要得益於過去 12 個月的秘密收購。有機成長略有正成長，其中 First Service 住宅業務的成長在很大程度上被 First Service Brands 部門的溫和下滑所抵消。本季的 EBITDA 成長了 24%，反映出我們的綜合利潤率強勁提高了 110 個基點。我們的多個品牌的利潤率均有所提高。傑里米將在幾分鐘內詳細介紹。最後，本季我們的每股盈餘大幅上漲了 37%。

Looking at our divisional results, first service residential revenues were up 6%, half organic, and half from a few small techs under over the last 12 months. The results were in line with expectation. We had a solid quarter of contract wins and retention as we continue to work our way back to our historical mid-single digit organic growth rate. Looking forward at first Service residential, we expect similar or slightly better organic growth in Q2 and sequential improvement for Q3 and Q4.

從我們各部門的業績來看，首批住宅服務收入成長了 6%，一半是自然成長，另一半來自過去 12 個月內幾家小型科技公司的收入。結果符合預期。我們本季度贏得了大量合同，並保留了大量合同，我們繼續努力恢復歷史上中等個位數的有機增長率。展望第一季度服務住宅，我們預計第二季的有機成長將類似或略好，第三季和第四季將實現連續改善。

Moving on to first service brands, revenues for the quarter were up 10%, driven entirely by tech under acquisitions. Organic growth for the division was slightly down with gains at Century Fire offset by organic declines in home services and our roofing platform. I'll give a high-level review of each segment and start with restoration. Revenues were generally in line with the expectation for the quarter up mid-single digit, flat organically. We had solid growth in the US with support from Hurricanes Helene and Milton, from which we generated a little over $10 million for the quarter. This was tempered by modest year over year declines in our Canadian operations. The Canadian operations of First on Site and Paul Davis account for about 30% of our North American restoration business.

談到第一服務品牌，本季營收成長 10%，完全由收購下的技術推動。該部門的有機成長略有下降，其中世紀消防的收益被家居服務和屋頂平台的有機下降所抵消。我將對每個部分進行高層次的回顧，並從修復開始。本季營收整體符合預期，成長中個位數，有機成長持平。由於颶風海倫和米爾頓的支持，我們在美國實現了穩健成長，本季我們由此獲得了略高於 1000 萬美元的收入。但由於我們加拿大業務較去年同期略有下滑，此情況有所緩解。First on Site 和 Paul Davis 的加拿大業務約占我們北美修復業務的 30%。

Our overall restoration backlogs at quarter end are solid. And at similar levels to year end and prior year. Looking forward to Q2, we expect revenues to continue at approximately the same level sequentially. Which would result in similar year over year results to Q1, flat to modestly up.

我們季度末的整體修復積壓工作很穩健。與年底和去年同期的水平相似。展望第二季度，我們預計營收將繼續保持大致相同的水平。這將導致與第一季類似的同比業績，持平或略有上升。

We'll now touch on our roofing segment, which delivered Q1 revenues that were up almost 50% year over year, driven by the acquisitions of Crowther Roofing and Hamilton Roofing in Florida. Organically, the revenues were lower than expected and down about 10% from the prior year quarter. There are two principal reasons for the reduction. One was weather in January and February, which reduced our production hours relative to the prior year. And secondly, we're seeing the expected awarding of some large commercial re-roof and new build contracts deferred. Bid activity has been solid, but the awarding of contracts has slowed. We see it as a timing issue only and directly related to the current economic uncertainty with tariffs.

現在讓我們來談談我們的屋頂部門，由於收購了佛羅裡達州的 Crowther Roofing 和 Hamilton Roofing，該部門第一季的營收年增近 50%。從有機角度來看，營收低於預期，較去年同期下降約 10%。減少的主要原因有二。一是一月和二月的天氣原因，導致我們的生產時間比去年同期減少。其次，我們看到一些大型商業翻修屋頂和新建合約的預期授予被推遲。投標活動一直很活躍，但合約授予速度有所放緩。我們認為這只是一個時間問題，並且與當前關稅帶來的經濟不確定性直接相關。

Looking to Q2 and roofing, we will again benefit from the year over year impact of the Florida acquisitions. And expect our revenues to be up between 25% and 30% versus prior year. Organically we expect to be down modestly due to the continued impact of contract deferral. The underlying demand dynamics remains strong, and we're optimistic that contract awards will accelerate as we move into the back half of this year.

展望第二季和屋頂業務，我們將再次受益於佛羅裡達州收購的年比影響。預計我們的收入將比去年增長 25% 至 30%。由於合約延期的持續影響，我們預計有機收入將略有下降。潛在的需求動態依然強勁，我們樂觀地認為，隨著進入今年下半年，合約授予將會加速。

Moving to Century Fire, we had a strong quarter, generally in line with expectation with revenues up over 10% and organic growth mid-single digit. The century results were bolstered by a particularly strong growth in repair, service, and inspection revenues. Similar to my comments relating to roofing, we did see some deferral of expected larger commercial in installation contracts from Q1 into Q2 or later in the year. Again, we see this as timing only. Our backlog continues to build its century, and we expect continued strong results for the balance of the year with organic growth in the high single digit range.

談到世紀消防，我們本季表現強勁，整體符合預期，營收成長超過 10%，有機成長率達到中等個位數。本世紀的業績得益於維修、服務和檢查收入的強勁增長。與我對屋頂的評論類似，我們確實看到預期的大型商業安裝合約從第一季推遲到第二季或今年稍後。再次強調，我們認為這只是一個時機問題。我們的積壓訂單持續積累，我們預計今年剩餘時間將繼續取得強勁業績，有機成長率將達到高個位數。

Now on to homes, our home service brands which as a group generated revenues that were down about 3% year over year just below expectation. It's been well documented over the last few months that consumer confidence has deteriorated due to the persistence of high interest rates and the economic uncertainty. Our lead flow reflected this in Q1 and was down year over year. As I indicated on our last call, our tried-and-true economic indicators, home equity values and home prices. Point to increases in home improvement spending. We remain optimistic that pent up demand is building, and we will start to see it in increased bookings in the second half of this year. Our lead flow is stabilized, and our teams continue to drive increased lead conversion.

現在談談家居，我們的家居服務品牌作為一個整體的收入同比下降了約 3%，略低於預期。過去幾個月有充分的證據表明，由於持續的高利率和經濟不確定性，消費者信心已經惡化。我們的第一季的銷售線索流量就反映了這一點，並且比去年同期有所下降。正如我在上次通話中指出的那樣，我們的可靠經濟指標是房屋淨值和房價。指出家居裝修支出增加。我們仍然樂觀地認為被壓抑的需求正在增強，我們將在今年下半年開始看到預訂量的增加。我們的潛在客戶流量已經穩定，我們的團隊將繼續推動潛在客戶轉換率的提高。

Looking to Q2, we expect revenues to be slightly down relative to the prior year. Before I pass to Jeremy, let me add a few comments. The direct impact of tariffs to first service are immaterial. However, as I have indicated in my comments, we are seeing a moderate indirect impact. The economic uncertainty in the market today that has resulted from the trade war is causing many commercial and residential consumers to pause. It's undeniable. I opened this call by saying that we were very pleased with the results in the current environment, and I want to reiterate that point. We grew organically in Q1, albeit modestly while driving enhanced margins. It's a testament to the diversification of our business model and the resilience of our brands. The demand drivers across our markets remain compelling, and we are optimistic we will see accelerated activity levels with market stability. On that note over to you Jeremy.

展望第二季度，我們預計營收將比上年略有下降。在將話題交給傑里米之前，請允許我補充幾點評論。關稅對首航服務的直接影響不大。然而，正如我在評論中所指出的，我們看到了中等程度的間接影響。貿易戰導致的當今市場經濟不確定性正在使許多商業和住宅消費者猶豫不決。這是不可否認的。我在電話會議開始時就說過，我們對當前環境下所取得的成果非常滿意，我想重申這一點。我們在第一季實現了有機成長，儘管增幅不大，但利潤率卻有所提高。這證明了我們的商業模式的多樣化和我們品牌的彈性。我們各市場的需求驅動力依然強勁，我們樂觀地認為，隨著市場穩定，我們將看到活動水準的加速。關於這一點，傑里米 (Jeremy) 交給你了。

Thank you, Scott. Good morning, everyone. We are pleased with today's first quarter financial performance, which delivered strong year over year growth in our key profitability metrics. To summarize the consolidated results for the quarter, we reported revenues of $1.25 billion an 8% increase over the $1.16 billion for Q1 2024. Adjusted EBITDA was $103.3 million up 24% year over year with an 8.3% margin and resulting in 110 basis points of improvement over the 7.2% margin in the prior year quarter. And our adjusted EPS was $0.92, reflecting 37% growth over the prior year. Adjustments to operating earnings and GAAP EPS and arriving at adjusted EBITDA and adjusted EPS respectively are consistent with our approach in prior periods.

謝謝你，斯科特。大家早安。我們對今天第一季的財務業績感到滿意，我們的主要獲利指標較去年同期成長強勁。總結本季的綜合業績，我們報告的營收為 12.5 億美元，比 2024 年第一季的 11.6 億美元成長 8%。調整後的 EBITDA 為 1.033 億美元，年成長 24%，利潤率為 8.3%，比去年同期的 7.2% 的利潤率提高了 110 個基點。我們的調整後每股收益為 0.92 美元，較上年增長 37%。營業利益和 GAAP EPS 的調整以及分別得出調整後的 EBITDA 和調整後的 EPS 與我們前期的方法一致。

To now walk through the segment results for our two divisions, I'll start with First Service residential. The division generated revenues of $525 million up 6% over last year's first quarter, while EBITDA was $41.6 million a 17% growth rate over the prior year. This resulted in an EBITDA margin of 7.9%, a 70 basis points increase over the 7.2% level in Q1 2024. This margin expansion was driven by cost efficiencies that we realized in our property management operations that are dedicated to servicing our community clients, including in areas around client accounting and contact centers. Our operating leaders and teams have been working on these initiatives for some time, and these efforts became more evident in Q1 as we emerge from the past 18 months of industry headwinds, which we have spoken about at length. I would note that the magnitude of the margin improvement was also amplified in our seasonally weakest first quarter.

現在，為了介紹我們兩個部門的細分結果，我將從 First Service 住宅部門開始。該部門的營收為 5.25 億美元，比去年第一季成長 6%，EBITDA 為 4,160 萬美元，比上年增長 17%。這使得 EBITDA 利潤率達到 7.9%，比 2024 年第一季的 7.2% 水準增加了 70 個基點。利潤率的擴大得益於我們在物業管理業務中實現的成本效率，這些業務致力於為社區客戶提供服務，包括客戶會計和聯絡中心等領域。我們的營運領導和團隊一直在致力於這些舉措，隨著我們擺脫過去 18 個月的行業逆風（我們對此進行了詳細的討論），這些努力在第一季變得更加明顯。我想指出的是，在我們季節性最疲軟的第一季度，利潤率的提高幅度也有所放大。

In future quarters and particularly the second half of 2025, the year over year margin expansion will taper to more modest amounts as our top line ticks higher with the resumption of normalized service levels at our managed communities. Thus, driving a greater mix of cited labour revenue. Now to our first service brands division where we reported revenues of $726 million for the current quarter up 10% over last year's Q1. Our EBITDA for the division was $67.8 million a 22% increase versus the prior year quarter. The resulting margin was 9.3%, up 90 basis points versus last year's 8.4% level. And primarily driven by our home services and restoration businesses. Within home services, our California Closets brand continued to realize the benefits from operating efficiencies and the reduction in promotional activity. Both of these initiatives kicked into higher gear in the second quarter of 2024. So, as we lack that period, we expect home services margin performance to be roughly flat year by year for upcoming Q2 and going forward.

在未來幾個季度，特別是 2025 年下半年，隨著我們管理的社區恢復正常服務水平，我們的營業收入將有所上升，因此同比利潤率的擴張將逐漸縮小至更為溫和的水平。從而推動勞動收入的更大組合。現在談談我們的第一個服務品牌部門，我們報告本季的營收為 7.26 億美元，比去年第一季成長 10%。該部門的 EBITDA 為 6,780 萬美元，較去年同期成長 22%。最終利潤率為 9.3%，較去年的 8.4% 上升 90 個基點。主要由我們的家庭服務和修復業務推動。在家庭服務領域，我們的 California Closets 品牌繼續從營運效率的提高和促銷活動的減少中獲益。這兩項措施均在 2024 年第二季進一步推進。因此，由於我們缺乏那段時期，我們預計即將到來的第二季及以後的家庭服務利潤率表現將逐年大致持平。

Restoration margins were also up over Q1 2024 as we continue our multi-year journey to streamline our operating processes and optimize our cost structure. As we've reiterated before, profitability metrics within restoration are dependent on weather, job activity levels, and type of work mix, and therefore we don't expect the margin improvement to play out each and every quarter, but rather over time. Our teams across all the service lines in our brands division have been highly focused and successful in grinding out sales and driving market share during a challenging macro environment while ensuring they get a healthy return on bottom line profitability. With respect to our consolidated operating cash flow, we generated more than $75 million before working capital changes and over $40 million including the impact of working capital.

隨著我們繼續多年來簡化營運流程和優化成本結構的努力，修復利潤率在 2024 年第一季也有所上升。正如我們之前重申的那樣，修復中的獲利指標取決於天氣、工作活動水平和工作組合類型，因此我們預計利潤率的提高不會在每個季度都顯現出來，而是隨著時間的推移而顯現出來。我們品牌部門所有服務線的團隊都高度專注，在充滿挑戰的宏觀環境下成功提高銷售額和市場份額，同時確保獲得健康的底線盈利回報。就我們的合併經營現金流而言，在營運資本變動之前，我們產生了超過 7,500 萬美元的現金流，如果包括營運資本的影響，則產生了超過 4,000 萬美元的現金流。

This cash flow conversion was both meaningfully higher than prior year and at a solid level, particularly given the Q1 seasonal trough for some of our businesses. Capital expenditures during the quarter were just shy of $30 million up modestly over the prior year and pacing within our full year CapEx guidance of roughly $125 million. We deployed minimal upfront cash towards tuck under acquisition spending during the quarter as we remained disciplined and selective in a competitive transaction valuation environment.

這一現金流轉換率明顯高於上年，且處於穩健水平，特別是考慮到我們部分業務在第一季處於季節性低谷。本季的資本支出略低於 3,000 萬美元，比上年略有增加，且符合我們全年資本支出預期的約 1.25 億美元。由於我們在競爭激烈的交易估值環境中保持紀律性和選擇性，我們在本季度投入了最少的前期現金來彌補收購支出。

Finally, looking at our balance sheet, our debt and cash balances were relatively unchanged at the end of the first quarter compared to 2024-year end, and therefore our net debt remained at $1.1 billion. Our leverage is conservative sitting at two times net debt to training 12 months either DA or in line with year-end. During the quarter, we also bolstered our debt capacity and flexibility by increasing and extending our five-year revolving bank credit facility to $1.75 billion plus an additional $250 million dollar accordion feature. Our liquidity reflecting cash and undrawn credit facility balances is sizable at more than $800 million putting us in a very strong financial position to deploy capital as opportunities arise in our acquisition pipeline.

最後，查看我們的資產負債表，與 2024 年底相比，第一季末我們的債務和現金餘額相對沒有變化，因此我們的淨債務保持在 11 億美元。我們的槓桿率比較保守，為淨債務的兩倍，用於培訓 12 個月的 DA 或與年底一致。在本季度，我們還透過將五年循環銀行信貸額度增加和延長至 17.5 億美元以及額外的 2.5 億美元折疊功能來增強我們的債務能力和靈活性。我們的流動性反映了現金和未提取的信貸額度餘額，超過 8 億美元，這讓我們在收購機會出現時擁有非常強大的財務狀況來部署資本。

Looking forward in the upcoming 2nd quarter, we are forecasting consolidated revenue growth similar to the 8% growth rate in Q1. EBITDA is expected to increase at a low double digit growth rate, with the residential division margin up and brand division margin in line to slightly up compared to last year's second quarter. Scott commented on the macro uncertainty that is somewhat clouding our visibility on the top line in some of our brand's division service lines, but we believe that any headwind impact is timing related and will be offset by pent up demand.

展望即將到來的第二季度，我們預測綜合收入成長率將與第一季 8% 的成長率相似。預計 EBITDA 將以低兩位數的成長率成長，其中住宅部門利潤率將上升，品牌部門利潤率將與去年第二季度持平或略有上升。史考特評論說，宏觀不確定性在一定程度上影響了我們品牌部分部門服務線的營收前景，但我們認為，任何不利因素的影響都與時間有關，並將被壓抑的需求所抵消。

At the same time, we are driving margins and profitability as evident with the strong Q1 performance under our belt, providing us with confidence in delivering on full year expectations for 2025. That concludes the prepared comment segment operator, you can now open up the call to questions. Thank you very much.

同時，我們正在提高利潤率和獲利能力，這從我們第一季的強勁表現中可以看出，這使我們有信心實現 2025 年全年的預期。準備好的評論部分到此結束，操作員，您現在可以開始提問了。非常感謝。

[operator instruction]

[操作員指令]

Now first question coming from the line of Stephen MacLeod with BMO Capital Markets. Your line is now open.

現在第一個問題來自 BMO 資本市場的 Stephen MacLeod。您的線路現已開通。

Thank you. Good morning guys. Thanks for the colour. Just a couple of questions just with respect to the macro weakness, could you just remind us of rt of what you would consider to be your consolidated, like exposure to macro gyrations like consumer spending and as you mentioned some of the commercial pushbacks you're seeing as well or delays.

謝謝。大家早安。謝謝你的顏色。關於宏觀經濟疲軟，我只想問幾個問題，您能否提醒我們您認為的綜合因素，例如消費者支出等宏觀波動的影響，以及您提到的您看到的一些商業阻力或延遲。

I sure, I can take a first cut and then I'll let Scott Lahren. I mean, in terms of the business that we've always said, whether it's related to tariffs or other macroeconomic exposure, we said the home improvement business, which is, north of $500 million tied to residential homeowner and consumer sentiment, and then, half a century fire and a third of roofing. Tied to commercial new development would be about another $500 million. So a billion dollars on $5 billion plus 20% of consolidated first service residential first service corporation revenues would be exposed, some to residential and some to commercial, so modest. Scott, anything to add?

我當然可以，我可以先篩選一下，然後再讓斯科特·拉倫 (Scott Lahren) 來。我的意思是，就我們一直說的業務而言，無論它是否與關稅或其他宏觀經濟風險有關，我們都說家居裝修業務，該業務與住宅房主和消費者情緒相關，超過 5 億美元，然後是半個世紀的火災和三分之一的屋頂。與商業新開發相關的投資將再增加約 5 億美元。因此，50 億美元中的 10 億美元加上合併後的優先服務住宅優先服務公司收入的 20% 將會受到影響，一部分用於住宅，一部分用於商業，因此金額很小。史考特，還有什麼要補充的嗎？

Yes, no, I don't have anything to add to that, Jeremy, thank you.

是的，不，我沒有什麼可補充的，傑里米，謝謝你。

Okay, that's great thanks Jeremy that's kind of the ballpark I was thinking. I just wanted to confirm that, and then maybe just sticking with the brands business, you talk a little talk a lot about, you talked a lot about sort of delays and projects, but your leads are up, but people are just are just not converting but you think that's going to come back through pent up demand, like are you seeing any change to conversions or is it just that the leads are building and customers are. Staying warm, they're just not committing is that sort of how to think about it?

好的，太好了，謝謝傑里米，這就是我所想的大概情況。我只是想確認一下，然後也許只是堅持品牌業務，您談論了很多，您談論了很多關於延遲和項目的事情，但是您的潛在客戶增加了，但是人們只是沒有轉化，但您認為這會通過被壓抑的需求回來，比如您是否看到轉化有任何變化，或者僅僅是潛在客戶在建立，客戶在建立。保持溫暖，他們只是不承諾，是這樣想的嗎？

I think that's right. I mean, it is different in with the home service brands and with the commercial delays we're seeing at Century Fire and Roofing. We, particularly on the commercial side, we see it as timing.

我認為那是對的。我的意思是，家居服務品牌和我們在 Century Fire and Roofing 看到的商業延遲有所不同。我們，特別是在商業方面，我們認為這是一個時機。

Work needs to be done i think that customers, I mean uncertainty causes hesitation and that's really what we're seeing. They're getting bids, they're seeing what the pricing environment is. They have work to do. They're not committing, but they, I, we don't think that these deferrals can go on for a significant length of time residentially with home services it's a little bit different. I mean a consumer confidence is down we saw this morning that existing home sales were down 6% in March. It's another indicator that the consumer is positing posing on capital outlays, well, until there's more certainty in the market.

我認為需要做一些工作，客戶，我的意思是不確定性會導致猶豫，而這正是我們所看到的。他們正在獲取投標，他們正在觀察定價環境。他們有工作要做。他們沒有承諾，但是他們，我，我們不認為這些延期可以持續很長一段時間，對於住宅而言，家庭服務有點不同。我的意思是消費者信心下降，我們今天早上看到，3 月現房銷售下降了 6%。這是另一個指標，表示消費者正在對資本支出做出預期，直到市場更確定為止。

This, if we get into a recession or a deeper recession, I think that the consumer confidence could stay at current levels. However, the homeowner on average is wealthy. The average home equity is significant relative to history, and home prices continue to tick up, creating more equity. And certainly, historically this has pointed to healthy home improvement spending. So, we think as soon as the market stabilizes, we're going to see it and we're optimistic that it will be you know later this year.

如果我們陷入經濟衰退或更嚴重的衰退，我認為消費者信心可能會保持在當前水準。然而，房主平均而言是富裕的。相對於歷史而言，平均房屋淨值相當可觀，而且房價持續上漲，創造了更多的淨值。當然，從歷史上看，這表明家庭裝修支出是健康的。因此，我們認為一旦市場穩定下來，我們就會看到它，並且我們樂觀地認為它將在今年晚些時候出現。

That's great, thanks Scott. And then maybe just finally, just on the M&A environment, if you do see if we do see a period of more protracted slowdown or delays, you talked about your, obviously in a strong financial position like what are you seeing in terms of multiples and are you seeing potential targets beginning to emerge?

太好了，謝謝斯科特。最後，也許只是在併購環境中，如果您確實看到我們確實看到了一段更為長期的放緩或延遲時期，您談到了您的財務狀況，顯然您處於強勁的狀態，比如您在倍數方面看到了什麼，您是否看到潛在目標開始出現？

Well, I would say that we're actually hearing about some sale processes that that have been deferred pushed to the back half of the year until things settle down, but I would say that the market's still quite active. There's no indication that multiples have changed, or certain, no indication that they've come down. But the market's active, our pipeline's active, we expect to transact this year. Over the balance of the year.

嗯，我想說，我們實際上聽說一些銷售流程已被推遲到今年下半年，直到事情穩定下來，但我想說市場仍然相當活躍。沒有跡象表明倍數已經發生變化，或者肯定沒有跡象表明倍數已經下降。但市場很活躍，我們的管道也很活躍，我們預計今年將進行交易。超過今年的餘額。

That's great. Okay, thanks guys appreciate the colour.

那太棒了。好的，謝謝大家欣賞這個顏色。

Thank you.

謝謝。

Thank you.

謝謝。

Our next question coming from the line of Scott Fletcher with CIBC, your line is now open.

我們的下一個問題來自加拿大帝國商業銀行的 Scott Fletcher，您的線路現已開放。

Hi, good morning. I'll stick to the brand side of things on the on the organic decline in the roofing piece you sort of mentioned 10% range. Is there any way you could break out how much of that it was weather related versus sort of commercial delay related, and I assume that would be that those weather-related delays would be more likely to come back sooner than the commercial delays.

嗨，早安。我會堅持從品牌角度考慮屋頂部分的有機下降，您提到的下降幅度在 10% 左右。您能否找出其中有多少是由於天氣原因造成的延誤，有多少是由於商業延誤造成的？我認為，與天氣原因造成的延誤更有可能比商業延誤更早出現。

I think that's right, Scott, we It's hard to pinpoint that accurately, but I'll spit ball it sort of half and half.

我認為這是對的，斯科特，我們很難準確地指出這一點，但我會把它分成一半一半。

Some of the New, roofing contracts are significant, well over $10 million up to 20. I mean it can from quarter to quarter it can make a difference and then.

一些新的屋頂合約金額龐大，遠遠超過 1000 萬美元，甚至高達 2000 萬美元。我的意思是它可以從一個季度到另一個季度產生影響。

Certainly weather can as well because it reduces your time on a roof and we certainly saw that in particular in January and February, this year.

當然天氣也會有影響，因為它減少了你在屋頂上的時間，我們在今年一月和二月尤其看到了這一點。

During our seasonally weakest quarter, because of winter weather, this year we saw.

今年，由於冬季天氣的影響，這是我們季節性最淡的季度。

Weather in the form of rain and high winds and, smoke from wildfires impact our production hours in non-seasonal regions like Texas, Louisiana, and California. So, That will come back, it won't come back in the second quarter entirely. We see over the balance of the year, but we do see the deferral and the commitment around these.

降雨、強風等天氣以及野火煙霧影響我們在德州、路易斯安那州和加州等非季節性地區的生產時間。所以，它會回來的，但不會在第二季完全回來。我們看到了今年的餘額，但我們確實看到了圍繞這些的延期和承諾。

New roofs and re-roofs, we do see that continuing until we see more stability in the market.

我們確實看到新屋頂和重新建造屋頂的現象持續下去，直到市場更加穩定。

Okay, thanks, that's helpful, and then on the restoration side, last quarter you sort of mentioned some unclear timelines on the reconstruction work related to the hurricanes. Is there anything you can update us on sort of the pipeline on reconstruction work in the restoration business?

好的，謝謝，這很有幫助，然後在恢復方面，上個季度您提到了與颶風相關的重建工作的一些不明確的時間表。您能否向我們介紹一下修復業務中重建工作的進展？

Generally I mean it's very slow to convert. Scoping, permitting, environmental approvals, insurance approvals all take considerable time. We Generated a little over 10 million in Q1 from Helene and Milton. We do have remaining backlog from these events. We expect to convert it really over the balance of the year. It won't be material to the year or to any particular quarter. I think the real relevant metric is our total backlog. Which is as I said in my in my prepared comments, it's similar to year end and to prior year which points to similar revenue levels in Q2.

一般來說，我的意思是轉換速度非常慢。範圍界定、許可、環境核准、保險核准都需要相當長的時間。我們在第一季從 Helene 和 Milton 那裡獲得了略高於 1000 萬的收入。這些事件確實給我們留下了積壓的工作。我們期望在今年餘下時間內真正實現這一目標。它對於年份或任何特定季度而言都不是重要的事情。我認為真正相關的指標是我們的總積壓量。正如我在準備好的評論中所說的那樣，這與年底和去年的情況類似，這表明第二季度的收入水平相似。

Okay great thank you I'll leave it.

好的，非常感謝，我會離開的。

Thank you.

謝謝。

Our next question coming from the line of Daryl Young with Stifel Financial Corp is now.

我們的下一個問題來自 Stifel Financial Corp 的 Daryl Young。

Hey, good morning, everyone. I think this might be the first quarter since I've covered you guys that you've missed on the top line and beat on margins, and I'm just wondering if there's a shift in how you're thinking about managing the business towards more margin centric and maybe dialling back top line growth or is this really just a function of some of the weather and whatnot issues you've already called out in the quarter.

嘿，大家早安。我認為這可能是我報道你們以來第一個季度，你們錯失了收入增長和利潤率超標的機會，我只是想知道，你們在管理業務方面的想法是否發生了轉變，變得更加以利潤率為中心，並可能回撥收入增長，或者這實際上只是一些天氣和其他問題的結果，您在本季度已經提到過這些問題。

Yes, I mean, well, the margin, Jeremy said in his comments, I mean, the margin efforts are Every day and every year and the teams are doing a great job really across all the brands. The top line, I mean, also. We didn't point it out in our comments, but There's about 10 million of FX. A impact also from our Canadian operations that hit our revenue that we didn't. Necessarily foresee And otherwise, no, it's really these home improvement again. A little lower than expected and the contract commitment commercially. At Century and roofing, I mean, all of it is Much of it tied to the trade war and the current environment and we think it's all timing related that underlying demand drivers are remain compelling and we're very optimistic about. Really all our brands and the demand environment once we get through this.

是的，我的意思是，利潤率，傑里米在評論中說，我的意思是，利潤率的努力是每天、每年的，團隊在所有品牌上都做得很好。我指的是頂線。我們沒有在評論中指出這一點，但 FX 大約有 1000 萬。我們的加拿大業務也對我們的收入產生了影響，但我們沒有。必然預見不然的話，不，真的又是這些家裝。比預期和合約承諾的商業性略低。對於世紀和屋頂來說，我的意思是，所有這些都與貿易戰和當前環境息息相關，我們認為這一切都與時機有關，潛在的需求驅動因素仍然引人注目，我們對此非常樂觀。一旦我們度過難關，我們所有的品牌和需求環境都會真正受到影響。

Got it. Okay, and then flipping over to the residential business, I think, in recessionary environments in the past you've seen more requests for pricing, I guess what we'll call it more shopping by HOAs, but you've always done well and taken share in that kind of environment is that sort of how you would be thinking about this time as well, or has anything changed now that you're at a much bigger scale?

知道了。好的，然後轉到住宅業務，我認為，在過去的經濟衰退環境中，您會看到更多的定價請求，我想我們稱之為 HOA 的更多購物，但您在那種環境中一直做得很好並且佔有份額，那麼您這次也是這樣想的嗎？或者現在您的規模更大了，有什麼改變嗎？

Well, I mean, the pricing pressure's been very acute in that business for the last 18 months, I mean, we've been talking about that particularly in in Florida with the pressure on the budgets, the community budgets, we don't see pricing pressure getting worse or escalating from here. These communities and their need to be managed. Will continue and it's always price competitive, so I don't, I really don't see it changing.

嗯，我的意思是，在過去的 18 個月裡，該行業的定價壓力一直非常大，我的意思是，我們一直在談論這個問題，特別是在佛羅裡達州，預算、社區預算的壓力很大，我們認為定價壓力不會變得更糟或升級。這些社區及其需要管理。將會繼續，而且它的價格始終具有競爭力，所以我不認為，我真的不認為它會改變。

Got it. Okay. And then do you have handy what your organic growth rate would be ex that FX impact that you spoke to or?

知道了。好的。那麼，您是否知道您的有機成長率是多少，不包括您提到的外匯影響？

Well, I'll just jump in at $10 million Scott said, pretty close to that, that's about a 1% on the consolidated line, we did 1.25% over the $1.16 billion last year.

好吧，我直接說 1000 萬美元，斯科特說，非常接近這個數字，這大約是合併線上的 1%，去年我們的業績比 11.6 億美元增長了 1.25%。

Got it. Okay, that's it for me. I'll jump back in the queue. Thanks everyone.

知道了。好的，對我來說就這樣了。我會重新回到隊列中。謝謝大家。

Thank you.

謝謝。

[operator instruction]

[操作員指令]

Our next question coming from the lineup Stephen Sheldon with William Blair. Your line is now open.

我們的下一個問題來自威廉布萊爾 (William Blair) 的史蒂芬謝爾頓 (Stephen Sheldon)。您的線路現已開通。

Hey, thanks for taking my questions. The first one here is really great to see the margin expansion in the residential segment this quarter. So, can you just give some more detail on how you're driving some efficiencies in client accounting and the contact center operations that you mentioned? And has your view changed at all the potential long term margin profile there relative to the 9% to 10% range you've talked about?

嘿，謝謝你回答我的問題。首先，很高興看到本季住宅部門的利潤率擴大。那麼，您能否更詳細地介紹如何提高客戶會計和您提到的聯絡中心營運的效率？相對於您談到的 9% 到 10% 的範圍，您對潛在的長期利潤率的看法是否有所改變？

Yes, Stephen, so client accounting is really around, headcount reductions and, streamlining our processes to get those monthly financial statements out to thousands of communities and the boards that are clients of those communities. Yeah, and then the contact centers and it's relating to dealing with inbound requests from our communities and our residences. We're using, digital and AI tools, technology, in a broad way to take the loads off of our frontline portfolio managers and bring it to the back office so they can be more effective in dealing with their boards and can be more productive and increase their loads. So, it's a whole bunch of efficiencies and at the end of the day, this is all about delivering service excellence and enhancing the customer experience at our communities.

是的，史蒂芬，客戶會計確實涉及裁員、簡化流程，以便將每月的財務報表發送給數千個社區以及這些社區的客戶委員會。是的，然後是聯絡中心，它與處理來自我們社區和住宅的入站請求有關。我們正在廣泛使用數位和人工智慧工具和技術，以減輕第一線投資組合經理的負擔，並將其轉移到後台辦公室，以便他們能夠更有效地與董事會打交道，提高工作效率並減少他們的負擔。所以，這需要大量的效率，歸根結底，這一切都是為了提供卓越的服務並增強我們社區的客戶體驗。

As to, the sustainability of it we've talked about as you alluded to a 9% to 10% margin band last year we were around the middle point of that and. With better margins this year, we'll be in the upper half of that band and that is our belief for our long-term goal. We'll continue to work on other margin enhancements over time, but being at the upper hand of the 9% to 10% margin band is a good target for us for the end of this year.

至於它的可持續性，正如您所提到的，去年我們的利潤率在 9% 到 10% 之間，處於中間點。由於今年的利潤率更高，我們將處於該區間的上半部分，這是我們對長期目標的信念。我們將繼續致力於提高其他利潤率，但在今年年底，利潤率保持在 9% 至 10% 之間對我們來說是一個好的目標。

Got it. That's helpful. And then just to follow up any updated thoughts about expanding the services portfolio similar to what you guys did when you expanded it into a restoration and roofing, are you entirely focused on growing and gaining market share in the current markets or as we're sitting here, a few years down the road, you think there could be a new business and then market in the portfolio? How are you guys thinking about it?

知道了。這很有幫助。然後，只是想跟進關於擴大服務組合的任何最新想法，類似於你們將其擴展到修復和屋頂時所做的那樣，你們是否完全專注於在當前市場中增長和獲得市場份額，或者就像我們現在坐在這裡一樣，幾年後，您認為投資組合中可能會出現新的業務和市場？大家覺得怎麼樣？

Always open minded, Steven, but our focus is on the brands we own today. The one thing I would add is that we have talked about this broader thesis around. Repair and maintenance of the built environment which includes restoration, it includes roofing, it includes painting, and there are other adjacencies that are. Very similar, so, we are, certainly interested in that broader thesis, which has, many drivers. And tailwinds, we talk frequently about the weather events, but the aging building stock, the, coastal building codes that we're increasingly seeing that are driving repair and maintenance spend, so there are, I would call them adjacencies that we're interested in, but they would be part of our current segments and part of our current platforms.

史蒂文，我們始終保持開放的心態，但我們的重點是我們今天擁有的品牌。我想補充一點，我們已經討論過這個更廣泛的論點。建築環境的修復和維護包括修復、屋頂、油漆以及其他相關工作。非常相似，因此，我們當然對這個具有許多驅動因素的更廣泛的論點感興趣。至於順風，我們經常談論天氣事件，但是我們越來越多地看到的老化建築存量、沿海建築規範正在推動維修和維護支出，因此，我稱它們為我們感興趣的鄰接領域，但它們將是我們當前細分市場的一部分，也是我們當前平台的一部分。

Great, thank you, Jermy and Scott.

太好了，謝謝你們，傑米和斯科特。

Thank you. Our next question coming from Dialler Frederic Bastien with Raymond James is now.

謝謝。我們的下一個問題來自 Raymond James 的 Dialler Frederic Bastien。

Good morning, guys, I was wondering if you could comment on labour avail availability and also, labour cost. I know this was obviously an issue when we saw inflationary pressures a couple of years back, but presumably things are getting a lot better, just based on the margins you delivered, just wanted to see if you could comment on that, please, thanks.

大家早上好，我想知道您是否可以評論勞動力可用性以及勞動力成本。我知道這顯然是幾年前我們看到通膨壓力時的一個問題，但據推測情況正在好轉很多，僅基於您提供的利潤率，只是想看看您是否可以對此發表評論，謝謝。

Yes, Frederick, much better, certainly than, a few years ago, our turnover is down, it's really down to a levels that we saw pre-COVID and continuing to improve and wage inflation is, has stabilized and so, we're able to recruit more effectively and we're able to keep our people more effectively and it's more stable than it's been in in in a few years.

是的，弗雷德里克，比幾年前好多了，我們的營業額下降了，確實降到了新冠疫情之前的水平，並且還在繼續改善，工資通脹也趨於穩定，因此，我們能夠更有效地招聘，能夠更有效地留住員工，而且比過去幾年更加穩定。

And is that helping facilitate market share gains? I know this is obviously a key part of the first service story is your ability to continue winning a market share. Is that helping contribute?

這有助於擴大市場佔有率嗎？我知道這顯然是第一個服務故事的關鍵部分，即您繼續贏得市場份額的能力。這樣有幫助嗎？

Well, culture employee experience for us is critical in delivering on customer experience, so the tenure of us of our folks, particularly the front line, always helps us in terms of driving customer experience, which, in turn, drives repeat business retention and word of mouth referrals, so the answer is the answer is yes.

嗯，對我們來說，文化員工體驗對於提供客戶體驗至關重要，因此，我們員工的任期，特別是一線員工，總是在推動客戶體驗方面幫助我們，這反過來又推動了重複業務的保留和口碑推薦，所以答案是肯定的。

Okay. Okay, great to hear. Thanks for your thoughts.

好的。好的，很高興聽到這個消息。謝謝你的想法。

Thank you. And I'm showing no further questions on the Q and A at this time. I will now attend the call back over to Mr. Scott Patterson for any closing comments.

謝謝。目前，在問答環節中沒有其他問題。我現在將回電給斯科特·帕特森先生，請他發表任何結束語。

Thank you, Olivia and thank you all for joining our Q1 call. Enjoy the rest of the day.

謝謝你，奧莉維亞，也謝謝大家參加我們的第一季電話會議。享受這一天的剩餘時間。

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

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。