Montrose Environmental Group Inc (MEG) 2024 Q2 法說會逐字稿

Good day, and welcome to the Montrose Environmental Group, Inc.'s second-quarter 2024 earnings call. (Operator Instructions)

美好的一天，歡迎參加 Montrose Environmental Group, Inc. 的 2024 年第二季財報電話會議。（操作員說明）

Please note this event is being recorded. And now, I'd like to turn the conference over to Adrianne Griffin, Senior Vice President, Investor Relations and Treasury. Please go ahead.

請注意此事件正在被記錄。現在，我想將會議交給投資者關係和財務部高級副總裁 Adrianne Griffin。請繼續。

Thank you, operator. Welcome to our second quarter 2024 earnings call. Joining me on the call are Vijay Manthripragada, our President and Chief Executive Officer; and Allan Dicks, our Chief Financial Officer. During our prepared remarks today, we will refer to our earnings presentation, which is available on the Investors section of our website. Our earnings release is also available on the website.

謝謝你，接線生。歡迎參加我們的 2024 年第二季財報電話會議。與我一起參加電話會議的還有我們的總裁兼執行長 Vijay Manthripragada；和我們的財務長艾倫迪克斯。在我們今天準備好的發言中，我們將參考我們的收益報告，該報告可在我們網站的投資者部分找到。我們的收益發布也可以在網站上找到。

Moving to slide 2. I would like to remind everyone that on today's call, we will include forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ in a material way due to known and unknown risks and uncertainties that should be considered in evaluating our operating performance and financial outlook.

轉到投影片 2。我想提醒大家，在今天的電話會議中，我們將納入受 1995 年《私人證券訴訟改革法案》安全港條款約束的前瞻性聲明。由於評估我們的經營業績和財務前景時應考慮的已知和未知的風險和不確定性，實際結果可能會存在重大差異。

We refer you to our recent SEC filings, including our annual report on Form 10-K, for the fiscal year ended December 31, 2023, which identify the principal risks and uncertainties that could affect any forward-looking statements as well as future performance. We assume no obligation to update any forward-looking statements.

我們建議您參閱我們最近向SEC 提交的文件，包括截至2023 年12 月31 日的財年的10-K 表格年度報告，其中確定了可能影響任何前瞻性陳述以及未來業績的主要風險和不確定性。我們不承擔更新任何前瞻性陳述的義務。

On today's call, we will discuss or provide certain non-GAAP financial measures, including consolidated adjusted EBITDA, adjusted net income, and adjusted net income per share. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures.

在今天的電話會議上，我們將討論或提供某些非公認會計準則財務指標，包括合併調整後 EBITDA、調整後淨利和調整後每股淨利。我們提供這些非 GAAP 結果僅供參考，不應將它們與最直接可比較的 GAAP 指標分開考慮。

Please see the appendix to the earnings presentation or our earnings release for a discussion of why we believe these non-GAAP measures are useful to investors, certain limitations of using these measures, and a reconciliation to their most directly comparable GAAP measure.

請參閱收益報告或收益報告的附錄，討論為什麼我們認為這些非 GAAP 衡量標準對投資者有用、使用這些衡量標準的某些限制以及與其最直接可比的 GAAP 衡量標準的調整。

With that, I would now like to turn the call over to Vijay, beginning on slide 4.

現在，我想將電話轉給 Vijay，從幻燈片 4 開始。

Thank you, and welcome to all of you joining us today. I wanted to start by introducing Adrianne Griffin, who is our new Head of Investor Relations. She brings stellar depth of IR experience to Montrose. And as we continue to increase our stakeholder engagement, we look forward to introducing her to all of you in the very near future. Welcome, Adrianne, and thank you.

謝謝大家，歡迎大家今天加入我們。首先，我想介紹一下我們新任投資者關係主管 Adrianne Griffin。她為 Montrose 帶來了深厚的 IR 經驗。隨著我們繼續增加利害關係人的參與，我們期待在不久的將來將她介紹給大家。歡迎，阿德琳娜，謝謝你。

I will open my remarks with an update on our business, operations and strategy. Allan will then provide the financial highlights. And following our prepared remarks, we will then hold a Q&A session.

我將首先介紹我們的業務、營運和策略的最新情況。艾倫隨後將提供財務要點。在我們準備好的發言之後，我們將舉行問答環節。

While today's call will highlight second quarter and year-to-date performance, it's important to reiterate that our business is best assessed on an annual basis. Demand for environmental solutions does not consistently follow quarterly patterns, and we manage our operations using annual perspectives. We are pleased to report our second quarter and first half results, which included our highest ever revenue and adjusted EBITDA.

雖然今天的電話會議將重點介紹第二季和年初至今的業績，但重要的是要重申，我們的業務最好按年度進行評估。對環境解決方案的需求並不總是遵循季度模式，我們使用年度視角來管理我們的營運。我們很高興地報告第二季和上半年的業績，其中包括我們有史以來最高的收入和調整後的 EBITDA。

Our solid operational performance and ability to capitalize on demand momentum across our business continues to be driven by our dedicated colleagues around the world, and I would like to thank them for their substantial contributions to our collective success. Our stellar quarterly results included 9% revenue growth and 10% adjusted EBITDA growth.

我們堅實的營運績效和利用整個業務的需求勢頭的能力繼續受到我們世界各地敬業的同事的推動，我要感謝他們為我們集體成功做出的巨大貢獻。我們出色的季度業績包括 9% 的營收成長和 10% 的調整後 EBITDA 成長。

Organic revenue growth across most of our businesses contributed to our record performance. Our organic growth trajectory continues to be positively impacted by further IP development and cross-selling success. We expect continued strong organic growth in the back half of the year, and we reaffirm our full year 2024 organic growth expectation of 10% to 12%.

我們大多數業務的有機收入成長為我們創紀錄的業績做出了貢獻。我們的有機成長軌跡持續受到進一步知識產權開發和交叉銷售成功的正面影響。我們預計下半年將繼續保持強勁的有機成長，並重申 2024 年全年有機成長 10% 至 12% 的預期。

Our focus on strengthening and optimizing margins was evident in our quarterly results, as we reported a 20-basis-point increase in consolidated adjusted EBITDA margins compared to the prior year period. Cross-selling success contributed to margin expansion in all 3 segments, and this is despite the impact of Matrix.

我們對加強和優化利潤率的關注在我們的季度業績中顯而易見，我們報告稱，與去年同期相比，綜合調整後 EBITDA 利潤率增長了 20 個基點。儘管受到 Matrix 的影響，交叉銷售的成功仍促進了所有 3 個細分市場的利潤成長。

And Matrix remains a bright spot and is now realizing low double-digit adjusted EBITDA margins in the quarter. While we are pleased with the significant profitability improvement our team has achieved since acquiring Matrix in June of last year, we remain focused on further optimization.

Matrix 仍然是一個亮點，目前在本季度實現了低兩位數的調整後 EBITDA 利潤率。雖然我們對自去年 6 月收購 Matrix 以來團隊實現的盈利能力顯著提高感到滿意，但我們仍然專注於進一步優化。

Turning now to slide 7. Since our prior update in May and following our equity capital raise, we have maintained our cadence of highly strategic M&A. In June of this year, we acquired Paragon, an exceptional addition to our Canadian footprint and an expansion of our environmental consulting and engineering services in Canada.

現在轉到投影片 7。自從我們五月的上次更新以及股權融資之後，我們一直保持著高度策略性併購的節奏。今年 6 月，我們收購了 Paragon，這是我們在加拿大業務的一個特殊補充，也是我們在加拿大環境諮詢和工程服務的擴展。

In July, we acquired Spirit Environmental, a leader in air permitting and modeling, which also enables geographic expansion across the US Mountain and Gulf states. Though both transactions are relatively small, they are very strategically additive to Montrose, and we are thrilled to welcome these new colleagues to Montrose. Our M&A pipeline remains robust and includes numerous opportunities for the coming 12 to 18 months.

7 月，我們收購了 Spirit Environmental，這是空氣許可和建模領域的領導者，這也使得地理擴張能夠跨越美國山區和海灣各州。儘管這兩筆交易規模相對較小，但它們對 Montrose 來說具有非常戰略性的補充，我們很高興歡迎這些新同事來到 Montrose。我們的併購管道依然強勁，並包含未來 12 至 18 個月的大量機會。

Regarding secular tailwinds, we remain as confident as ever in Montrose's ability to capitalize on the broad catalysts impacting our end markets. As our customers react to anticipated regulatory complexity following recent US Supreme Court decisions, and as our customers work to comply with state and local regulatory requirements and respond to stakeholder encouragement, demand for Montrose's suite of innovative environmental services technology and solutions grows in tandem.

關於長期有利​​因素，我們一如既往地相信 Montrose 有能力利用影響我們終端市場的廣泛催化劑。隨著我們的客戶對美國最高法院最近判決後預期的監管複雜性做出反應，以及隨著我們的客戶努力遵守州和地方監管要求並響應利益相關者的鼓勵，對Montrose 創新環境服務技術和解決方案套件的需求隨之成長。

We remain very positive on the long-term upside from regulatory drivers and complexity, which I will discuss in detail shortly. I will now discuss our second quarter performance by segment, the details of which are found on slides 13 through 15. Within our assessment, permitting, and response segment, during the second quarter, we saw robust demand for our advisory services, as well as growing cross-selling success across multiple business lines.

我們對監管驅動因素和複雜性帶來的長期好處仍然非常樂觀，我很快就會詳細討論這一點。我現在將按細分市場討論我們第二季的業績，詳細資訊請參閱投影片 13 至 15。在我們的評估、授權和回應領域，第二季我們看到對諮詢服務的強勁需求，以及跨多個業務線的交叉銷售成功。

The increase in segment margin was primarily driven by solid organic growth. This segment also includes our environmental emergency response business, and revenue associated with these emergency events does not follow a regular pattern, and emergency response revenue was down substantially in the second quarter because of a response that occurred last year and did not recur this year. Within the measurement and analysis segment, we are seeing the benefits of continued state, local and federal regulations.

部門利潤率的成長主要是由穩健的有機成長所推動的。該部門還包括我們的環境緊急應變業務，與這些緊急事件相關的收入不遵循常規模式，由於去年發生今年沒有發生的響應，緊急應變收入在第二季大幅下降。在測量和分析領域，我們看到了持續的州、地方和聯邦法規的好處。

Our comparative market outperformance has been primarily organic, driven by our lab services, PFAS, and air testing services. Continued project wins, such as our support of the Department of Defense, are driving success in this segment. Margins during the quarter were higher year over year, mainly due to revenue growth and operating leverage.

我們的相對市場表現主要是有機的，由我們的實驗室服務、PFAS 和空氣測試服務所推動。持續的專案勝利，例如我們對國防部的支持，正在推動這一領域的成功。該季度的利潤率同比較高，主要得益於營收成長和營運槓桿。

Within our remediation and reuse segment, revenue growth benefited from acquisitions in the prior-year period, including Matrix, and strong organic revenue growth in our soil and groundwater remediation business, which more than offset an expected decline in our water treatment and renewable services, which we expect will be back on a solid growth trajectory later this year and into 2025 and beyond.

在我們的修復和再利用部門，營收成長得益於去年同期的收購，包括Matrix，以及我們土壤和地下水修復業務的強勁有機收入成長，這遠遠抵消了我們水處理和可再生服務的預期下降，我們預計今年稍後以及 2025 年及以後將恢復穩健的成長軌跡。

Margins during the quarter increased versus prior year, given strong operational improvement in Matrix, acquisitions and organic revenue growth in our soil and groundwater remediation business. We are thrilled to see increasing revenues and margins from Matrix, validating our integrated strategy and further substantiating the acquisition component of our method of creating value for our shareholders.

由於 Matrix 營運的強勁改善、土壤和地下水修復業務的收購以及有機收入的成長，本季的利潤率較上年有所增長。我們很高興看到 Matrix 的收入和利潤不斷增加，這驗證了我們的綜合策略，並進一步證實了我們為股東創造價值的方法中的收購部分。

Next, I will discuss a few recent regulatory developments and the foundation for our long-term growth outlook. As we discussed on a recent webcast available on our website, the US Supreme Court recently issued several sweeping opinions. In aggregate, they appear to limit the authority of federal agencies, including the US EPA, to interpret ambiguous federal statutory provisions.

接下來，我將討論最近的一些監管動態以及我們長期成長前景的基礎。正如我們在網站上最近的網路廣播中討論的那樣，美國最高法院最近發布了幾項全面的意見。總的來說，它們似乎限制了包括美國環保署在內的聯邦機構解釋模糊聯邦法規的權力。

This may open the door to litigation by potentially affected parties who seek to challenge prior interpretations of agency rules within a 6-year statute of limitations. These rulings have introduced quite a bit of uncertainty into our marketplace. Long-term, we believe uncertainty will be lower because shifts in political parties overseeing the EPA will have less of an impact on the statutorily authorized activities of the US EPA.

這可能會為潛在受影響方提起訴訟打開大門，他們試圖在 6 年時效期限內質疑先前對機構規則的解釋。這些裁決為我們的市場帶來了相當多的不確定性。從長遠來看，我們認為不確定性將會降低，因為監督美國環保署的政黨的變化對美國環保署法定授權活動的影響較小。

For Montrose, our short-term and long-term business outlook remains unchanged. In fact, we anticipate incremental opportunities arising from the increased regulatory complexity these rulings are likely to introduce. Uncertainty and complexity tend to drive demand for our advisory and consulting services.

對於 Montrose，我們的短期和長期業務前景保持不變。事實上，我們預期這些裁決可能會帶來監管複雜性的增加，帶來更多的機會。不確定性和複雜性往往會推動對我們諮詢和諮詢服務的需求。

As a result of these rulings, we also expect state and local regulatory bodies who retain significant enforcement authority to continue and potentially increase their efforts to enforce existing regulations. This shift benefits Montrose, given our strong capabilities to serve our clients across multiple state and local jurisdictions.

由於這些裁決，我們也預計保留重要執法權力的州和地方監管機構將繼續並可能加強執行現有法規。這項轉變對 Montrose 有利，因為我們有強大的能力為多個州和地方司法管轄區的客戶提供服務。

State-level regulations often require more localized expertise, which is a strength of ours and a key differentiator in our business model. In terms of client sentiment, major clients across a diverse cross-section of our end markets, with whom we spoke, have indicated they are staying the course in terms of their existing environmental compliance programs and corporate sustainability goals, and they do not foresee any immediate changes in demand for Montrose's services.

州級法規通常需要更多在地化專業知識，這是我們的優勢，也是我們業務模式的關鍵差異化因素。就客戶情緒而言，我們採訪過的終端市場各個領域的主要客戶均表示，他們將堅持現有的環境合規計劃和企業可持續發展目標，並且他們預計不會有任何變化。需求立即改變。

This sentiment reinforces our confidence in our reiterated business outlook. While the regulatory landscape is evolving, Montrose is well positioned to navigate these changes and capitalize on the opportunities presented. Our business remains anchored on stable longstanding regulations that we believe are unlikely to change as a result of this shift in legal doctrine.

這種情緒增強了我們對重申的業務前景的信心。儘管監管環境不斷變化，Montrose 仍處於有利地位，能夠駕馭這些變化並充分利用所帶來的機會。我們的業務仍然以穩定的長期法規為基礎，我們認為這些法規不太可能因法律原則的轉變而改變。

As it relates to other regulatory updates, we've seen continued momentum from the U.S. EPA with regards to PFAS. Building on the EPA's final National Primary Drinking Water Regulation for six PFAS compounds issued in April, the Comprehensive Environmental Response, Compensation, and Liability Act, also known as CERCLA, hazardous substance designation for PFOA and PFOS, was finalized in May and became effective on July 8, 2024.

由於與其他監管更新相關，我們看到美國 EPA 在 PFAS 方面的持續發展勢頭。根據EPA 於4 月發布的針對六種PFAS 化合物的最終國家飲用水一級法規，《綜合環境響應、補償和責任法案》（也稱為CERCLA），即PFOA 和PFOS 的有害物質指定，於5 月最終確定，並於2024 年 7 月 8 日。

This CERCLA regulation triggers the requirement for immediate reporting of releases of 1 pound or more of either substance. Additionally, CERCLA liability for both chemicals is now in effect. As we mentioned last quarter, we expect this regulatory update to enhance our access to the approximately $200 billion addressable market for Montrose based on the number of impacted facilities we could engage. While still in its early stages, we anticipate demand for PFAS will ramp up over time.

CERCLA 法規要求立即報告 1 磅或以上任一物質的釋放情況。此外，CERCLA 對這兩種化學品的責任現已生效。正如我們上季度所提到的，根據我們可以參與的受影響設施的數量，我們預計此次監管更新將增強我們進入 Montrose 約 2000 億美元潛在市場的機會。雖然仍處於早期階段，但我們預計對 PFAS 的需求將隨著時間的推移而增加。

Importantly, we do not anticipate the recent Supreme Court rulings to impact this major milestone in PFAS remediation.

重要的是，我們預計最高法院最近的裁決不會影響 PFAS 修復的這一重要里程碑。

Regarding methane emissions, in June, the EPA opened applications for $850 million in federal funding for projects that will help monitor, measure, quantify, and reduce methane emissions from the oil and gas sector. This funding is designed to help mitigate legacy air pollution, create energy jobs in disadvantaged communities, reduce waste and inefficiencies, and realize near-term emissions reductions. This presents longer-term tailwinds for our emissions measuring, monitoring, and assessment solutions as clients evaluate their environmental impacts.

關於甲烷排放，6 月份，美國環保署 (EPA) 開放了 8.5 億美元聯邦資金申請，用於幫助監測、測量、量化和減少石油和天然氣行業甲烷排放的計畫。這筆資金旨在幫助減輕遺留空氣污染，為弱勢社區創造能源就業機會，減少浪費和低效率，並實現短期減排。當客戶評估其環境影響時，這為我們的排放測量、監測和​​評估解決方案帶來了長期的推動力。

The Supreme Court and Congress in the United States have already weighed in on methane emissions regulations, so we don't expect a change to our growth thesis in energy end markets. With regards to the political landscape and the upcoming US presidential election, we remain confident in Montrose's ability to perform well regardless of the outcome.

美國最高法院和國會已經對甲烷排放法規進行了權衡，因此我們預計我們在能源終端市場的成長論點不會改變。就政治格局和即將到來的美國總統選舉而言，無論結果如何，我們仍然相信蒙特羅斯有能力表現良好。

As we've demonstrated on slide 8, our strong performance existed during the Biden, Trump, and Obama administrations. This was by design. Our business model was designed to be resilient and largely insulated from the political swings at the federal level, which we've demonstrated repeatedly. We expect this trend to hold true going forward, given our limited exposure to any one end market and the higher relative influence of state and local environmental regulations on our customer activity.

正如我們在幻燈片 8 中所展示的，我們在拜登、川普和奧巴馬政府期間表現強勁。這是設計使然。我們的商業模式旨在具有彈性，並且在很大程度上不受聯邦一級政治波動的影響，這一點我們已經多次證明。鑑於我們對任何一個終端市場的敞口有限，以及州和地方環境法規對我們客戶活動的相對影響較大，我們預計這一趨勢將持續下去。

While our business mix may shift from period to period, we remain as well positioned as ever to benefit from the evolving landscape.

儘管我們的業務組合可能會隨著時期的變化而變化，但我們仍然一如既往地處於有利地位，可以從不斷變化的格局中受益。

In summary, I'm extremely proud of our team's performance this quarter to close out a strong first half of 2024. The continued organic growth in our business reflects the resilience of our business model and ramping demand for our environmental solutions as our customers increasingly choose Montrose's portfolio of differentiated solutions to work through complex environmental situations.

總而言之，我對我們團隊本季的表現感到非常自豪，並為 2024 年上半年畫上了圓滿的句點。我們業務的持續有機成長反映了我們業務模式的彈性以及隨著我們的客戶越來越多地選擇 Montrose 的差異化解決方案組合來應對複雜的環境情況，對我們的環境解決方案的需求不斷增加。

Looking to the remainder of the year, we are as confident as ever, given the evolving regulatory landscape and the growing environmental concerns in our end markets. We are reiterating our full-year revenue guidance of $690 million to $740 million, and consolidated adjusted EBITDA guidance of $95 million to $100 million. We expect to see significant opportunities for both organic growth and further strategic acquisitions in the coming quarters.

展望今年剩餘時間，鑑於不斷變化的監管環境和終端市場日益增長的環境問題，我們一如既往地充滿信心。我們重申全年營收指引為 6.9 億美元至 7.4 億美元，綜合調整後 EBITDA 指引為 9,500 萬美元至 1 億美元。我們預計在未來幾季將看到有機成長和進一步策略收購的重大機會。

With that, I'll hand it over to Allan. Thank you.

這樣，我就把它交給艾倫了。謝謝。

Thanks, Vijay. We delivered another quarter of strong financial performance as we continue to execute according to plan. Organic growth remained robust, given increased traction with our cross-selling initiatives and continued pricing success. We were also pleased to drive positive contributions from our recently acquired businesses. Our strategic investments better position us to capitalize on demand and our growth drivers remain intact.

謝謝，維傑。隨著我們繼續按計劃執行，我們又實現了強勁的財務業績。由於我們的交叉銷售計劃和持續的定價成功，有機成長仍然強勁。我們也很高興為我們最近收購的業務做出積極貢獻。我們的策略投資使我們能夠更好地利用需求，並且我們的成長動力保持不變。

Moving to our revenue performance on slide 10. Our second quarter revenues increased to a record $173.3 million, or an 8.9% increase compared to the prior year quarter. First half revenues of $328.7 million increased 13.1% versus the prior year period.

轉到投影片 10 上我們的收入表現。我們第二季的營收增至創紀錄的 1.733 億美元，比去年同期成長 8.9%。上半年營收為 3.287 億美元，比去年同期成長 13.1%。

The primary drivers of growth in both periods were strong organic revenue growth in our AP&R and the M&A segments and the contribution of acquisitions, partially offset by lower environmental emergency response and water treatment revenues, and the shift away from lower margin revenue in our renewable services business completed in the latter part of last year.

這兩個時期成長的主要驅動力是我們的AP&R 和併購部門的強勁有機收入增長以及收購的貢獻，但部分被環境應急響應和水處理收入的下降以及可再生能源服務中利潤率較低的收入的轉變所抵銷業務於去年下半年完成。

Looking at our consolidated adjusted EBITDA performance on slide 11. In the second quarter, we reported a record $23.3 million, or 13.5% of revenue. This compares favorably to consolidated adjusted EBITDA of $21.2 million, or 13.3% of revenue in the prior year quarter.

查看投影片 11 上我們的綜合調整後 EBITDA 業績。第二季度，我們報告了創紀錄的 2,330 萬美元，佔營收的 13.5%。相較之下，綜合調整後 EBITDA 為 2,120 萬美元，佔去年同期營收的 13.3%。

First half 2024 consolidated adjusted EBITDA was $40.2 million, or 12.2% of revenue, compared to consolidated adjusted EBITDA of $37.8 million, or 13% of revenue. The increase in consolidated adjusted EBITDA was primarily due to higher revenues, driven by organic growth and acquisitions.

2024 年上半年，綜合調整後 EBITDA 為 4,020 萬美元，佔營收的 12.2%，而綜合調整後 EBITDA 為 3,780 萬美元，佔營收的 13%。綜合調整後 EBITDA 的成長主要是由於有機成長和收購推動的收入增加。

Consolidated adjusted EBITDA as a percentage of revenues decreased due to Matrix, which despite continued improvement in EBITDA margins since acquisition, has not yet achieved our mid-teens EBITDA margin target.

由於 Matrix 的影響，合併調整後 EBITDA 佔營收的百分比有所下降，儘管自收購以來 Matrix 的 EBITDA 利潤率持續改善，但尚未實現我們的 15% 左右的 EBITDA 利潤率目標。

Moving to a review of adjusted net income on slide 12. We reported diluted adjusted net income per share of $0.20 in the second quarter of 2024 compared to $0.29 in the prior year quarter. For the first half of this year, we reported diluted adjusted net income per share of $0.37 compared to $0.47 in the prior year period. The change in both periods was mainly driven by an increase in interest and tax expenses, partially offset by improved results from operations, lower dividends on our Series A-2 preferred stock, and a higher weighted average outstanding share count.

接下來回顧投影片 12 上的調整後淨利。我們報告 2024 年第二季稀釋調整後每股淨利為 0.20 美元，而去年同期為 0.29 美元。今年上半年，我們公佈的稀釋調整後每股淨利潤為 0.37 美元，而去年同期為 0.47 美元。這兩個期間的變化主要是由於利息和稅收費用的增加，部分被營運績效的改善、A-2 系列優先股股息的減少以及加權平均流通股數量的增加所抵消。

As a reminder, during the third quarter of 2023, we changed our tax methodology for adjusted net income, as reflected in the adjusted net income reconciliation table in the appendix, for the current and prior periods. Please note our adjusted net income per diluted share attributable to common stockholders is calculated using adjusted net income attributable to stockholders divided by fully diluted shares. We believe this net income methodology is the most helpful net income metric to Montrose and to common equity investors.

提醒一下，在 2023 年第三季度，我們改變了當期和前期調整後淨利潤的稅收方法，如附錄中調整後淨利潤調節表所示。請注意，我們調整後的歸屬於普通股股東的稀釋每股淨利是用調整後歸屬於股東的淨利除以完全稀釋股份計算得出的。我們相信這種淨利潤方法對於 Montrose 和普通股投資者來說是最有幫助的淨利潤指標。

Turning to our business segments beginning on slide 13. I'll focus my comments on the second quarter. In our assessment, permitting, and response segment, second quarter revenue was $53.4 million, compared to $61.4 million in the prior year quarter, as solid organic growth in our advisory business line was more than offset by a $14.7 million decline in environmental emergency response revenues.

從幻燈片 13 開始轉向我們的業務部門。我將集中評論第二季度。在我們的評估、許可和響應部門，第二季度收入為5,340 萬美元，而去年同期為6,140 萬美元，這是因為我們的諮詢業務線的穩健有機增長被環境應急響應收入下降1,470 萬美元所抵消。

AP&R segment adjusted EBITDA was $12.6 million, or 23.6% of revenue, up from 22.5% in the prior year, reflecting favorable business mix. Long-term margins in the segment are expected to be 20% to 25%. In our measurement and analysis segment, revenue for the quarter increased 9.5% to $54.8 million, primarily attributable to organic growth.

AP&R 部門調整後 EBITDA 為 1,260 萬美元，佔營收的 23.6%，高於前一年的 22.5%，反映出良好的業務組合。該領域的長期利潤率預計為 20% 至 25%。在我們的測量和分析部門，本季營收成長 9.5% 至 5,480 萬美元，這主要歸功於有機成長。

M&A adjusted EBITDA increased 14.6% to $12.4 million, or 22.5% of revenue, a 90 basis point margin improvement over the prior year quarter due to revenue growth and operating leverage. We reiterate our expectation for long-term annual margins in the segment to be between 18% and 20%.

併購調整後的 EBITDA 成長 14.6%，達到 1,240 萬美元，佔營收的 22.5%，由於營收成長和營運槓桿，利潤率比去年同期提高了 90 個基點。我們重申對該領域長期年利潤率的預期為 18% 至 20%。

In our remediation and reuse segment, second quarter revenues increased 36.6% to $65.1 million, primarily due to the acquisition of Matrix, partially offset by the shift in our renewable service business to focus on higher margin revenue projects as well as expected lower water treatment revenues.

在我們的修復和再利用部門，第二季度收入增長了36.6%，達到6510 萬美元，這主要是由於收購了Matrix，但部分被我們的可再生服務業務轉向關注利潤率更高的收入項目以及預期較低的水處理收入所抵消。

Segment adjusted EBITDA margin improved due to acquisitions and improved Matrix margins. The improvement in Matrix is a result of our margin optimization efforts, and this business remains on track to achieve a mid-teen adjusted EBITDA margin by the end of 2024 on an annualized run rate basis. We continue to expect organic growth and margin expansion in this segment for the full year.

由於收購和 Matrix 利潤率的提高，部門調整後 EBITDA 利潤率有所改善。Matrix 的改善是我們利潤率優化努力的結果，並且該業務仍有望在 2024 年底前按年化運行率實現 15% 左右的調整後 EBITDA 利潤率。我們繼續預計全年該領域的有機成長和利潤率擴張。

Moving to a review of our cash flow and capital structure on slide 16. Year-to-date cash flow used in operating activities was $21.1 million compared to cash generated of $24.5 million in the prior year. Lower cash flow from operations was driven primarily by an increase in receivables related to the integration of Matrix earlier this year and several large new projects.

接下來回顧投影片 16 上我們的現金流量和資本結構。年初至今，經營活動使用的現金流量為 2,110 萬美元，而前一年產生的現金為 2,450 萬美元。營運現金流減少的主要原因是今年稍早與 Matrix 整合和幾個大型新項目相關的應收帳款增加。

Cash flow from operating activities is expected to improve over the balance of the year as the nonseasonal increase in accounts receivable is temporary. There are no collection issues or credit problems with these large, well-established customers. Operating cash flow in the back half of the current year is expected to be up significantly versus the second half of 2023.

由於應收帳款的非季節性成長是暫時的，預計今年餘下的經營活動現金流量將有所改善。這些信譽良好的大型客戶不存在收款問題或信用問題。預計今年下半年的營運現金流將較 2023 年下半年大幅成長。

In April, we completed a follow-on equity offering, raising net proceeds of approximately $121.8 million, providing further flexibility to continue M&A and organic investments. We have already deployed $27 million of this to work via the acquisitions of Paragon and Spirit.

4 月份，我們完成了後續股權發行，籌集了約 1.218 億美元的淨收益，為繼續併購和有機投資提供了進一步的靈活性。我們已經投入了 2700 萬美元用於收購 Paragon 和 Spirit。

At the end of the quarter, we had $188.3 million of liquidity, including $16.9 million of cash on hand, and $171.4 million of availability on our credit facility. Our leverage ratio as of June 30, 2024 was 2.4 times and well within our long-term operating leverage target of below 3.5 times.

截至本季末，我們擁有 1.883 億美元的流動資金，其中包括 1,690 萬美元的手頭現金以及 1.714 億美元的可用信貸額度。截至 2024 年 6 月 30 日，我們的槓桿率為 2.4 倍，遠低於我們低於 3.5 倍的長期營運槓桿目標。

Moving to our reiterated full year outlook on slide 18. Based on the performance in the first half and our conviction in the second half, we reiterate our outlook for full-year 2024 revenues to be in the range of $690 million to $740 million, and consolidated adjusted EBITDA to be in the range of $95 million to $100 million.

轉向我們在幻燈片 18 上重申的全年展望。基於上半年的表現和我們對下半年的信念，我們重申 2024 年全年營收的預期為 6.9 億至 7.4 億美元，綜合調整後 EBITDA 為 9,500 萬美元至 1 億美元。

Our 2024 outlook remains anchored on our expectation for low double-digit organic revenue growth and margin expansion over the prior year and includes an expectation for full year emergency response revenues to be in the $50 million to $70 million range. As we highlighted last quarter, we expect to generate roughly 60% of our full year 2024 adjusted EBITDA in the back half of the year, primarily due to the timing of recent acquisitions, Matrix seasonality and project timing.

我們對 2024 年的展望仍基於對上一年低兩位數有機收入成長和利潤率擴張的預期，包括對全年緊急應變收入在 5,000 萬至 7,000 萬美元範圍內的預期。正如我們在上季度所強調的那樣，我們預計下半年將產生 2024 年全年調整後 EBITDA 的約 60%，這主要是由於最近收購的時機、Matrix 季節性和專案時機。

As compared to the prior year period, we expect third quarter 2024 revenue growth of approximately 10%, along with adjusted EBITDA margin improvement of approximately 100 bps. Third and fourth quarter 2024 adjusted EBITDA is expected to be similar.

與去年同期相比，我們預計 2024 年第三季營收將成長約 10%，調整後 EBITDA 利潤率將改善約 100 個基點。2024 年第三季和第四季調整後 EBITDA 預計將相似。

Overall, we remain as optimistic as ever in the strength of our business and our ability to capitalize on the many growth avenues we see before us. Our second-quarter results reflect strong execution at all levels of our business and the successes we are seeing with our cross-selling and margin-enhancing initiatives. With the recent additions to our service portfolio from our acquisitions, Montrose is well positioned to meet the growing needs for our differentiated environmental solutions.

總體而言，我們對我們的業務實力和利用我們面前的許多成長途徑的能力一如既往地保持樂觀。我們第二季的業績反映了我們業務各個層面的強勁執行力以及我們在交叉銷售和提高利潤舉措方面所取得的成功。隨著最近透過收購增加我們的服務組合，Montrose 已做好充分準備，可以滿足我們差異化環境解決方案不斷增長的需求。

Thank you all for joining us today and for your continued interest in Montrose. We look forward to the opportunities we see ahead and updating you on our progress next quarter.

感謝大家今天加入我們並感謝您對 Montrose 的持續關注。我們期待未來看到的機會，並向您通報我們下個季度的進展。

Operator, we are ready to open the lines to questions.

接線員，我們已準備好開始提問。

(Operator Instructions) Tim Mulrooney, William Blair.

（操作員說明）Tim Mulrooney、William Blair。

Just to start out, level set here, you guys highlighted robust organic growth in the second quarter several times in your prepared remarks. I don't think I caught what that was.

首先，你們在準備好的演講中多次強調了第二季度強勁的有機成長。我不認為我明白那是什麼。

Yes, Tim, we don't break out our quarterly organic, as you know, but we wanted to indicate that we are well on our way to achieving our annual organic guidance of 10% to 12%. We're feeling like we're in a very good spot, given the cadence of the business both in the first and second quarters and what we can see for Q3 and Q4.

是的，蒂姆，正如您所知，我們沒有公佈季度有機目標，但我們想表明，我們正在順利實現 10% 至 12% 的年度有機目標。考慮到第一季和第二季的業務節奏以及第三季和第四季的情況，我們感覺自己處於一個非常好的位置。

Okay. Well, that's helpful. I mean, it must have been strong then. So that's helpful color. Shifting gears, Vijay, I know that water treatment business was lower in the second quarter. Is that something we should expect for the back half of 2024 as well? Just curious, based on what you see in your backlog today or with customer conversations, like when you might expect that to begin to grow again on a year-over-year basis?

好的。嗯，這很有幫助。我的意思是，當時它一定很強大。所以這是有用的顏色。換檔，Vijay，我知道第二季度水處理業務較低。我們對 2024 年下半年是否也該抱持這樣的期望？只是好奇，根據您今天在積壓訂單中或與客戶對話中看到的情況，例如您預計什麼時候會再次開始同比增長？

Yes. Let me step back and give you some of the themes, Tim. And then I'll talk specifically about first half, second half, and year-over-year. So, our -- and this is something we alluded to in earlier conversations. The cadence of our discussions related to treatment has picked up materially.

是的。讓我退後一步，給你一些主題，提姆。然後我會具體談談上半年、下半年和年比情況。所以，我們的——這是我們在之前的談話中提到的。我們與治療相關的討論節奏明顯加快。

And as we think about the adoption curve extending through the latter part of this year and into the next several years, that curve certainly has lengthened, but the opportunity set seems much bigger than it was for Montrose.

當我們考慮今年下半年和未來幾年的採用曲線時，這條曲線肯定會延長，但機會集似乎比 Montrose 的要大得多。

And so we're pretty excited about what the long-term outlook looks like for us. PFAS water treatment, specifically for us, is up in the second half of the year versus the first half of this year. So we're already expecting some growth in that business through the back half of this year. And that's in the guidance numbers that we've provided to you.

因此，我們對我們的長期前景感到非常興奮。特別是對我們來說，PFAS 水處理量在下半年比上半年有所增加。因此，我們預計今年下半年該業務將出現一些成長。這就是我們提供給您的指導數字。

And then, as we think about our broader treatment technology business, of which the water treatment is a part, Tim, the water treatment and renewables part, that business is up nicely year on year as well. And so, we're kind of looking at a nice set of secular tailwinds in that business, but the timing of that is not really quarterly for us. We're thinking about that more in the medium to long-term, if that makes sense.

然後，當我們考慮更廣泛的處理技術業務（水處理是其中的一部分）時，蒂姆，水處理和可再生能源部分，該業務也逐年增長。因此，我們在該業務中看到了一系列良好的長期順風車，但對我們來說，這種時機並不是真正的季度性的。如果有意義的話，我們會在中長期內多考慮這個問題。

And then, just to reiterate, PFAS for us is not just water treatment. It's in our advisory and our testing business. And a lot of the strong organic growth you're seeing in those two segments is driven in significant part because of our prominence in the PFAS advisory and testing markets.

然後，重申一下，PFAS 對我們來說不僅僅是水處理。這是我們的諮詢和測試業務。您在這兩個領域看到的強勁有機成長在很大程度上是由於我們在 PFAS 諮詢和測試市場中的突出地位而推動的。

Yes, Vijay, if I could just sneak one more in. Sorry. But on that point, as more and more water systems begin implementing PFAS testing programs over the next few years, I'm just curious if you've already seen a step up in demand there yet in your labs business, or if it's just too early to say that there's been an impact there from the...

是的，維傑，如果我能再偷偷溜進去一次就好了。對不起。但在這一點上，隨著越來越多的供水系統在未來幾年開始實施 PFAS 測試計劃，我很好奇您是否已經看到實驗室業務中的需求增加，或者是否太過了早說有影響...

No, we have. If you look at our testing segment, Tim, that growth is all organic. We haven't, I don't believe, completed any acquisitions in that segment, and PFAS is a big part of that.

不，我們有。提姆，如果你看看我們的測試部分，你會發現這種成長是有機的。我認為我們還沒有完成該領域的任何收購，而 PFAS 是其中的重要組成部分。

Jim Ricchiuti, Needham & Company.

吉姆‧里奇烏蒂 (Jim Ricchiuti)，李約瑟公司。

two questions. First, and I know it's still very early in light of the Supreme Court ruling, but what I'm wondering is, as you think about '25 and possibly even '26, and think about M&A in a post-Chevron world, are you thinking about it any differently? And maybe even before we talk about the M&A point, are you considering any changes in the way you allocate resources across the business lines in light of the ruling?

兩個問題。首先，我知道根據最高法院的裁決，現在還為時過早，但我想知道的是，當你思考25 年甚至可能是26 年，並思考後雪佛龍世界中的併購時，你是嗎？也許在我們討論併購點之前，您是否正在考慮根據裁決對跨業務線的資源分配方式進行任何變更？

In light of Chevron, Jim, no. And the reason is for us, the bottom line is we think there's actually going to be more opportunity than risk as a result of Chevron. The regulations that impact Montrose seem pretty clearly within the statutory authority of the EPA. And as we think about the regs across our segments, most of them have been decades old. And even as we look at the recent regs around PFAS and methane, a lot of that has been written in via Congressional Act.

鑑於雪佛龍，吉姆，不。原因是對我們來說，底線是我們認為雪佛龍的結果實際上是機會多於風險。影響 Montrose 的法規似乎非常明確地屬於 EPA 的法定權限。當我們思考我們各個細分市場的法規時，大多數法規已經有幾十年的歷史了。即使我們查看最近有關 PFAS 和甲烷的法規，其中許多內容都是透過國會法案寫入的。

And so, we are not -- we don't expect and we don't anticipate much flux in the business due to Chevron. There may be challenges for other reasons, as there always has been in the past, and we've seen this for many, many years, around the technicalities of specific regulations, but that's par for the course for us. And so, no, our actions there are unlikely to change.

因此，我們預期雪佛龍的業務不會發生太大變化。可能會因為其他原因而面臨挑戰，就像過去一直存在的那樣，而且我們已經看到這種情況很多很多年了，圍繞著具體法規的技術細節，但這對我們來說是正常的。因此，不，我們在那裡的行動不太可能改變。

The other dynamic, Jim, that we are always have been looking at and perhaps would look at a little bit more, is that Chevron likely shifts a little bit more influence to state and local regulators. And that's where we tend to shine because of our ability to service the local markets and with local expertise. And so, we will continue to and anticipate more activity in select markets where we see a lot of opportunity to continue to provide services for our clients.

吉姆，我們一直在關注並且可能會更多關注的另一個動態是雪佛龍可能會將更多的影響力轉移給州和地方監管機構。這就是我們往往表現出色的地方，因為我們有能力服務當地市場並擁有當地專業知識。因此，我們將繼續並預期在特定市場進行更多活動，我們認為這些市場有許多機會繼續為客戶提供服務。

And then, the last part of this, Jim, and I think you've known this; I mean, for several years now, we've expanded our footprint largely at the behest of our clients internationally. And we have about 20% of Montrose's revenues now ex-US, which is not really impacted by Chevron at all. So as you kind of look at the diversity of our business, which has been in play now for years, our path is largely unchanged.

然後，最後一部分，吉姆，我想你已經知道了；我的意思是，幾年來，我們主要是應國際客戶的要求擴大了我們的足跡。現在，Montrose 大約 20% 的收入來自美國以外的地區，這根本沒有受到雪佛龍的影響。因此，當你看看我們業務的多樣性時，我們的道路基本上沒有改變，這種多樣性已經發揮了多年的作用。

And in many ways, we think long term, Chevron actually introduces more certainty. Because if there's major changes in the Executive branch in terms of political philosophy from one to the other, there's not going to be as much change because if it's under statutory mandate, the agencies can't just decide what they're going to do. So for all those reasons, we're staying the course and we're feeling as good as ever.

從很多方面來看，我們認為從長遠來看，雪佛龍實際上帶來了更多的確定性。因為如果行政部門的政治理念發生重大變化，那麼變化就不會那麼大，因為如果是在法定授權範圍內，各機構就不能只決定他們要做什麼。因此，出於所有這些原因，我們將堅持到底，並且感覺一如既往。

Follow-up question, actually separate topic. I wanted to ask about gross margins, which I know you don't guide to. But the fact is, these are the highest gross margins that I can recall. And so, I wonder if you could talk perhaps to the improvement in the quarter and, yes, any color in perhaps how we should be thinking about gross margins going forward.

後續問題，實際上是單獨的主題。我想問毛利率，我知道你沒有提到這一點。但事實是，這是我記憶中最高的毛利率。因此，我想知道您是否可以談談本季的改善，是的，我們應該如何考慮未來毛利率的任何顏色。

Yes. Gross margins, Jim, are closely tied to our operating EBITDA margin, right? So the drivers of operating EBITDA margin, which you've seen increase year over year, and if you do the math, the back half margins will be even stronger of an increase year over year. Some of that is business mix, but it also reflects the impact of some of the pricing success that we've had. It reflects the operating leverage that we're seeing in some of our businesses, like our labs.

是的。吉姆，毛利率與我們的經營 EBITDA 利潤率密切相關，對吧？因此，營運 EBITDA 利潤率的驅動因素，您已經看到它逐年增長，如果您計算一下，後半部分利潤率的逐年增長將更加強勁。其中一些是業務組合，但它也反映了我們所取得的一些定價成功的影響。它反映了我們在一些業務（例如我們的實驗室）中看到的營運槓桿。

And then, as we've built scalable support functions, we're increasingly able to relieve our operating teams of a lot of the back office support that they were providing. So if you look at our SG&A, you strip out acquisitions, SG&A within operations is flat in dollar terms. And so, we're getting the benefit of operating leverage in [dollar] as well. So all of those drivers are increasing gross margins, and they should continue to improve over time similar to our EBITDA margins.

然後，隨著我們建立了可擴展的支援功能，我們越來越能夠減輕我們的營運團隊所提供的大量後台支援。因此，如果你看看我們的 SG&A，剔除收購，營運中的 SG&A 以美元計算是持平的。因此，我們也從[美元]營運槓桿中受益。因此，所有這些驅動因素都在增加毛利率，隨著時間的推移，它們應該會繼續改善，類似於我們的 EBITDA 利潤率。

[Brian Butler], Stifel.

[布萊恩巴特勒]，史蒂菲爾。

Congratulations on a good quarter. So just going back to sort of your guidance, you reaffirmed it, but just looking back, you've spent $27 million on Paragon and Spirit since you actually raised guidance back in April, and you mentioned they were accretive. Maybe you could just provide some color on like how much -- I know you don't disclose this, but maybe what you sort of expect to get them in the guidance and what is offsetting that contribution. I mean, if it's -- maybe it's nothing that large, so that's why a guidance raise is not warranted, but if you could provide some color?

恭喜您度過了一個美好的季度。回到你的指導，你重申了這一點，但回顧一下，自從你在 4 月份實際提出指導以來，你已經在 Paragon 和 Spirit 上花費了 2700 萬美元，並且你提到它們是增值的。也許你可以提供一些顏色，例如多少——我知道你沒有透露這一點，但也許你希望將它們納入指南中，以及抵消這一貢獻的因素。我的意思是，如果它是——也許沒有那麼大，所以這就是為什麼指導性提高是沒有道理的，但如果你能提供一些顏色嗎？

It's a great question. It's a great question. Those were small acquisitions. And so, for those two in particular, our aggregate average multiple hasn't moved. But for those two acquisitions in particular, they were a little bit higher than our historical cadence of mid to high single-digit. And as a result, when you look at kind of the annual contribution and you take just the back half of this year, it's a de minimis amount of contribution and not enough to move our annual guidance.

這是一個很好的問題。這是一個很好的問題。這些都是小規模的收購。因此，特別是對於這兩者，我們的總平均本益比沒有變化。但特別是對於這兩項收購，它們比我們歷史上中高個位數的節奏要高一些。因此，當你看看年度貢獻的種類時，只考慮今年下半年，這是微不足道的貢獻，不足以改變我們的年度指導。

When we started 2024, just to kind of reset where we were, we were at $90 million to $95 million, and we took it up to $95 million to $100 million on the back of very strong organic performance and the impact of -- the strong impact of acquisitions that had already been completed. And so, we feel like a lot of the expectation for this year was baked into that guidance, and these two transactions were too small for us to kind of increase it further. Though, as the year progresses, there may be opportunity to relook at that as we get through Q3.

當我們開始2024 年時，只是為了重置我們的位置，我們的收入為9000 萬至9500 萬美元，在非常強勁的有機業績和強大影響力的支持下，我們將其提高到了9500 萬至1 億美元。因此，我們覺得今年的許多預期都融入了該指導中，而這兩筆交易規模太小，我們無法進一步增加預期。不過，隨著時間的推移，隨著第三季的到來，我們可能有機會重新審視這一點。

All right. Thanks. And just to follow up, it's not related, but with Matrix, the target mid-teens margins, what's left to get it there, and do we actually start seeing that in 3Q?

好的。謝謝。跟進一下，這並不相關，但是對於 Matrix，目標利潤率是十幾歲左右，還剩下什麼才能實現這一目標，我們真的會在第三季度開始看到這一點嗎？

Yes. I mean, look, what you've seen -- again, just to kind of reset so that we know where we started. When we purchased Matrix, that business was around 4.5% to 5% EBITDA margins. And we knew, of course, that there was lots of opportunity for us to influence that. And that is now trending to low double-digits and is well on its way to achieving its mid-teens by the end of this year.

是的。我的意思是，看，你所看到的——再次，只是為了某種重置，以便我們知道我們從哪裡開始。當我們收購 Matrix 時，該業務的 EBITDA 利潤率約為 4.5% 至 5%。當然，我們知道我們有很多機會來影響這一點。目前這一數字正趨於兩位數，並且預計在今年年底達到十幾歲左右。

And so we're feeling really good about the trajectory of that business. And obviously, the returns to Montrose are exceptional. All the things we've done to get from 5%-ish to the low double-digits are things like pricing, staffing optimization, the optimization of overhead costs. And those efforts have largely been put in place and have almost been completed. And the increase between now and the end of the year is just a continuation of what's already well in flight. There's just a timing issue, but the efforts are all in place.

因此，我們對該業務的發展軌跡感到非常滿意。顯然，蒙特羅斯的回報是非凡的。為了從 5% 左右到低兩位數，我們所做的所有事情都是定價、人員配置優化、管理成本優化等。這些努力已經基本到位，幾乎已經完成。從現在到今年年底的成長只是已經順利進行的情況的延續。雖然只是時間問題，但努力都已經到位了。

(Operator Instructions) Stephanie Yee, JPMorgan.

（操作員指示）Stephanie Yee，摩根大通。

Could you give us an update on the renewable service business, how that's progressing? I think you're going to lap the pivot that you started in the back half of last year as we enter into the third quarter this year.

您能為我們介紹一下再生能源服務業務的最新情況嗎？我認為，當我們進入今年第三季時，您將完成去年下半年開始的轉型。

Yes. That's progressing really well. So that business, similar to what I was describing earlier, last year to this year, should see nice growth. First half -- the second half of this year should see nice growth, and '24 to '25 should see nice growth.

是的。進展非常順利。因此，與我之前描述的業務類似，從去年到今年，該業務應該會看到良好的成長。今年上半年--下半年應該會看到不錯的成長，「24-25」應該會看到不錯的成長。

And so we're back on offense in that business. It is part of our treatment technology portfolio, and it's the same team as we've talked about before. And the combination of our water treatment and renewables business, we think is on a really nice upward trajectory over the next couple of years.

所以我們在這方面又開始進攻了。它是我們治療技術組合的一部分，與我們之前討論過的團隊是同一個團隊。我們認為，我們的水處理和再生能源業務的結合在未來幾年將處於非常好的上升軌道。

Okay, great. And I have a question on capital allocation. So, you've done five acquisitions year to date. I think, are you thinking maybe you might surpass your goal of acquiring $10 million in EBITDA in any given year? And then secondly, would you consider buying back your shares at the current stock level then to offset the dilution from more shares outstanding?

好的，太好了。我有一個關於資本配置的問題。到目前為止，您已經完成了五次收購。我想，您是否認為您可能會超越在任何一年中獲得 1000 萬美元 EBITDA 的目標？其次，您是否會考慮以當前股票水平回購股票，以抵消更多已發行股票帶來的稀釋？

Let me take the first question, and Allan, you'll take the second one [accepted] as well. So yes, we have surpassed our goal this year of acquiring $10 million a year, and the opportunity set ahead of us remains quite significant, Stephanie.

讓我回答第一個問題，艾倫，你也回答第二個問題[已接受]。所以，是的，我們今年已經超越了每年收購 1000 萬美元的目標，而且擺在我們面前的機會仍然非常重要，史蒂芬妮。

And we talked about this in the context of the capital raise. Our selection as a preferred acquirer by many of the companies that we're talking to remains as robust as ever. And the opportunity for us to continue adding value for our shareholders and for our business is as robust as ever. So we expect to see continued activity through the back half of this year, and we'll stay close to you as that progresses. And then the outlook for next year remains quite strong as well.

我們在融資的背景下討論了這一點。我們被許多正在洽談的公司選為首選收購方，這仍然一如既往。我們繼續為股東和業務增加價值的機會一如既往。因此，我們預計今年下半年將繼續開展活動，隨著進展，我們將與您保持密切聯繫。明年的前景仍然相當強勁。

Yes. And on the potential buyback, it's something, honestly, we've discussed internally. But being a high-growth company, that doesn't seem to fit with the thesis. And while we agree this looks like a pretty attractive entry point, it's just not where our focus is, right? The investments in acquisitions have very strong ROIs, it fits with our strategy and thesis. And so, we're going to stick to running the business that way. But certainly something we've knocked around internally.

是的。老實說，關於潛在的回購，我們已經在內部討論過。但作為一家高成長公司，這似乎不符合這個論點。雖然我們同意這看起來是一個非常有吸引力的切入點，但這不是我們的重點，對吧？收購投資具有非常高的投資報酬率，它符合我們的策略和論文。因此，我們將堅持以這種方式經營業務。但肯定是我們在內部解決了一些問題。

Yes. Stock price for us, Stephanie, as you know, is something we're -- we don't fully control. And it looked like the stock price reacted to the Supreme Court Chevron decision. So we're looking forward to getting back. We were in the midst of a quiet period, getting it back in front of investors to talk through it.

是的。正如你所知，史蒂芬妮，我們的股票價格是我們無法完全控制的。股價似乎對最高法院雪佛龍的裁決做出了反應。所以我們期待著回來。我們正處於一段安靜的時期，將其重新擺在投資者面前進行討論。

And as we mentioned to you, look, we can buy businesses at mid to high single digits. The value that creates for all of our shareholders are contrasted with buying back Montrose stock at -- even at these depressed prices, mid to high teens multiples. It's ultimately our fiduciary responsibility to all of you, and we'll always make sure we execute on that.

正如我們向您提到的，看，我們可以以中高個位數購買企業。為我們所有股東創造的價值與回購 Montrose 股票形成鮮明對比，即使在如此低迷的價格下，回購的價格也是中等到高的十幾倍。這最終是我們對你們所有人的信託責任，我們將始終確保我們執行這一點。

But we're feeling pretty good about the plan, and we do think the markets will be rational over the medium to long term.

但我們對該計劃感覺非常好，我們確實認為從中長期來看市場將是理性的。

Thank you. And that does conclude the question-and-answer session. I would like to turn the conference over to Vijay Manthripragada, CEO, for any closing comments.

謝謝。問答環節到此結束。我想將會議轉交給執行長 Vijay Manthripragada 徵求結束意見。

Thank you all again for your time, and we look forward to sharing more progress and have a fantastic day.

再次感謝大家抽出寶貴時間，我們期待分享更多進展並祝您度過美好的一天。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演講。現在您可以斷開線路。