Perimeter Solutions Inc (PRM) 2021 Q3 法說會逐字稿

Hello, and welcome to the Perimeter Solutions Q3 2021 Earnings Conference Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Nori Yokozuka, Perimeter Solutions General Counsel. Please go ahead, Nori.

您好，歡迎參加 Perimeter Solutions 2021 年第三季財報電話會議和網路廣播。 （操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興將電話轉給 Perimeter Solutions 總法律顧問 Nori Yokozuka。請繼續，諾裡。

Thank you, operator. Good morning, everyone, and thank you for joining Perimeter Solutions' Third Quarter 2021 Earnings Call. Speaking on today's call are Nick Howley and Will Thorndike, Co-Chairman of Perimeter; Haitham Khouri, Vice Chairman; Eddie Goldberg, Chief Executive Officer; and Barry Lederman, Chief Financial Officer.

謝謝你，接線生。大家早安，感謝您參加 Perimeter Solutions 的 2021 年第三季財報電話會議。尼克·豪利 (Nick Howley) 和 Perimeter 聯合主席威爾·桑代克 (Will Thorndike) 在今天的電話會議上發言。海瑟姆‧庫裡，副主席；埃迪·戈德堡，首席執行官；和財務長巴里·萊德曼。

We want to remind anyone who may be listening to a replay of this call that all statements made are as of today, December 14, 2021, and these statements have not been nor will they be updated subsequent to today's call. Also today's call may contain forward-looking statements.

我們想提醒任何可能正在收聽本次電話會議重播的人，所有聲明均截至今天（2021 年 12 月 14 日），並且這些聲明在今天的電話會議之後尚未也不會更新。此外，今天的電話會議可能包含前瞻性陳述。

These statements made today are based on management's current expectations, assumptions and beliefs about our business and the environment in which we operate and our actual results may materially differ from those expressed or implied on today's call.

今天發表的這些聲明是基於管理層目前對我們的業務和營運環境的預期、假設和信念，我們的實際結果可能與今天電話會議中明示或暗示的結果有重大差異。

Please review our SEC filings for a more complete discussion of factors that could impact our results. The company would also like to advise you that during the call, we will be referring to non-GAAP financial measures, including EBITDA. Please refer to our earnings press release and presentation as well as the 10-Q, both of which will be available on our website and on the SEC's website.

請查看我們向 SEC 提交的文件，以更完整地討論可能影響我們結果的因素。該公司也想提醒您，在電話會議中，我們將提及非 GAAP 財務指標，包括 EBITDA。請參閱我們的收益新聞稿和簡報以及 10-Q，這兩者都將在我們的網站和 SEC 網站上提供。

With that, I will turn the call over to Nick Howley, Perimeter's Co-Chairman.

接下來，我會將電話轉給 Perimeter 聯合主席尼克·豪利 (Nick Howley)。

Good morning, everyone, and thanks for calling in. Since this is our first earnings call at Perimeter, Will Thorndike and I will each make introductory comments. Will and I do not expect to join every earnings call going forward.

大家早安，感謝您的來電。威爾和我預計不會參加未來的每一次財報電話會議。

Starting on the first slide, our objective. As you've heard from us before, our goal is to deliver private equity-like returns with the liquidity of a public market. We define this as mid-teens or better long-term IRR on our equity. We plan to attain this goal by owning, operating and growing uniquely high-quality businesses.

從第一張投影片開始，我們的目標。正如您之前從我們那裡聽說的，我們的目標是透過公開市場的流動性提供類似私募股權的回報。我們將其定義為我們股權的長期 IRR 為十幾歲或更好。我們計劃透過擁有、經營和發展獨特的高品質企業來實現這一目標。

We seek to strive long-term equity value creation by optimizing all 3 of: one, the performance of our existing operations, including consistent improvement in our 3 operational value drivers, that is continual cost improvement, pricing to reflect the full value we provide and new business generation; two, the allocation of our capital; and three, the careful management of our capital structure.

我們尋求透過優化以下三個面向來努力創造長期股權價值：一是我們現有營運的績效，包括持續改善我們的三個營運價值驅動因素，即持續改善成本、定價以反映我們提供的全部價值，以及新的商業世代；二、我們的資本配置；第三，謹慎管理我們的資本結構。

Now let me touch on specific roles and responsibilities going forward as well as our early impressions since closing this business -- on this business about a month ago. We formed an executive committee consisting of myself, Will Thorndike and our partner, Haitham Khouri. The Executive Committee will work closely with Perimeter CEO, Eddie Goldberg, to implement our value-based operating methodology.

現在讓我談談未來的具體角色和職責，以及我們自大約一個月前關閉這項業務以來的早期印象。我們成立了一個執行委員會，由我自己、威爾桑代克（Will Thorndike）和我們的合夥人海瑟姆·庫裡（Haitham Khouri）組成。執行委員會將與 Perimeter 執行長 Eddie Goldberg 密切合作，實施我們基於價值的營運方法。

While it's still very early days, we're encouraged by the value creation opportunities we see across the operational value drivers in the company. We're also very encouraged by our philosophical alignment with Eddie. Eddie has led this business for 20 years and has grown Perimeter into the excellent company it is today. We've already implemented our unique compensation system that closely aligns management with shareholders and incentivizes sustainable long-term equity value creation.

雖然現在還處於早期階段，但我們在公司營運價值驅動因素中看到的價值創造機會令我們感到鼓舞。我們與艾迪的理念一致也讓我們深受鼓舞。 Eddie 領導這項業務已有 20 年，並將 Perimeter 發展成為今天的優秀公司。我們已經實施了獨特的薪酬體系，使管理層與股東緊密結合，並激勵可持續的長期股權價值創造。

The executive committee will focus on optimizing value creation through the allocation of our capital and the management of our capital structure. To this end, the Board appointed Haitham as Perimeter's Vice Chairman, where in addition to his role on the Board and the executive committee, will focus primarily on Perimeters' capital allocation, capital structure capital market activities as well as long-term strategic priorities. Finally, I'll note that we're pleased with the business' financial results, which have exceeded our expectations from earlier this year.

執行委員會將重點放在透過資本配置和資本結構管理來優化價值創造。為此，董事會任命 Haitham 為 Perimeter 的副主席，除了在董事會和執行委員會中的職務外，他還將主要關注 Perimeter 的資本配置、資本結構、資本市場活動以及長期戰略重點。最後，我要指出的是，我們對公司的財務表現感到滿意，這超出了我們今年稍早的預期。

And with that, I'll turn this over to Will to touch a little more on our capital allocation plans. Thank you.

接下來，我將把這個問題轉交給威爾，讓他進一步討論我們的資本分配計畫。謝謝。

Thank you, Nick. As most of you have heard from us before, we evaluate potential acquisitions based on 5 very specific economic criteria. And given how important these criteria are to our capital allocation philosophy, we thought it would be helpful to walk investors through how closely we believe Perimeter fits them.

謝謝你，尼克。正如你們大多數人之前從我們那裡聽說過的那樣，我們根據 5 個非常具體的經濟標準來評估潛在的收購。考慮到這些標準對我們的資本配置理念有多重要，我們認為引導投資人了解我們認為 Perimeter 與他們的契合程度會有所幫助。

So the first is recurring revenue streams, and Perimeter has exceptional scores on the qualitative metrics we use to evaluate a business' stickiness and the long-term predictability, including customer churn and net revenue retention. The bottom line is that once you gain a retardant customer, you almost never lose them and you almost always grow them. Investors should appreciate, however, that within this overall pattern of revenue stickiness, there is an element of year-over-year variability, primarily tied to the intensity of the North American fire season. That said, over time, we expect long-term secular growth to continue and to sort of overwhelm any near-term variability. And we expect that this variability will diminish over time, particularly as we seek to grow our acyclical prevention and protection businesses and our potentially countercyclical international business.

因此，第一個是經常性收入流，Perimeter 在我們用來評估業務黏著度和長期可預測性（包括客戶流失和淨收入保留）的定性指標上取得了優異的成績。最重要的是，一旦你獲得了遲鈍的客戶，你幾乎永遠不會失去他們，而且你幾乎總是會成長他們。然而，投資者應該意識到，在這種收入黏性的整體模式中，存在著同比變化的因素，主要與北美火災季節的強度有關。也就是說，隨著時間的推移，我們預計長期長期成長將持續下去，並在某種程度上壓倒任何近期的波動。我們預計這種可變性將隨著時間的推移而減少，特別是當我們尋求發展我們的非週期性預防和保護業務以及潛在的反週期國際業務時。

Second economic criteria for us is long-term secular growth tailwinds and on this dimension, again, Perimeter has exceptional metrics. So the company has grown retardant volumes at an approximately 10% organic compound growth rate over the decade or so through 2020. And this volume growth has been driven by 3 primary factors.

我們的第二個經濟標準是長期的長期成長順風，在這個維度上，Perimeter 再次擁有出色的指標。因此，到 2020 年為止的十年左右，該公司的阻燃劑產量以約 10% 的有機化合物增長率增長。

So the first is higher acres burned and longer fire seasons, the unfortunate result of broader climate effects; and the second is a growing wildland urban interface, which increases the number of wildfires that must be fought in order to protect life and property. And I think a simple way to think about that is that many acres that would have been allowed to burn a decade ago must increasingly now be fought as populations begin to encroach further into wildlands at the perimeter of urban areas; and the third factor driving volume growth is increasing tanker capacity, which improves the ability to fight wildfires, of course, and air tanker capacity has consistently been a limiting constraint on retardant volumes during fire season as evidenced by request unable to fill data from the National Interagency Fire Center. And we expect these 3 key volume drivers to persist going forward, underpinning our confidence in Perimeter's long-term volume growth prospects.

因此，首先是燒毀面積更大，火災季節更長，這是更廣泛的氣候影響的不幸結果；第二個是不斷擴大的荒地城市介面，這增加了為了保護生命和財產而必須撲滅的野火數量。我認為一個簡單的思考方法是，隨著人口開始進一步侵占城市地區週邊的荒地，十年前允許燃燒的許多土地現在必須越來越多地進行鬥爭；推動數量增長的第三個因素是增加罐車容量，當然，這提高了撲滅野火的能力，而空中罐車容量一直是火災季節阻燃劑數量的限制因素，無法填寫國家消防局數據的請求就證明了這一點。我們預計這 3 個關鍵銷售驅動因素將持續向前發展，以支撐我們對 Perimeter 長期銷售成長前景的信心。

Okay. The third economic criteria is we like products that account for critical but small portions of larger value streams, what Nick calls small into big. And Perimeter, again, scores extremely highly on this dimension. Retardant is the active ingredient and a critical component in wildland firefighting where failure, of course, is measured in loss of life and property and potentially severe environmental damage. And despite its criticality, retardant consistently represents a low to mid-single-digit percent of overall wildfire suppression costs, thus providing a tremendous customer value.

好的。第三個經濟標準是我們喜歡那些在較大價值流中佔據關鍵但一小部分的產品，尼克稱之為「從小到大」。而 Perimeter 在這個維度上的得分也非常高。阻燃劑是荒地消防的活性成分和關鍵成分，當然，如果失敗，則意味著生命和財產損失以及潛在的嚴重環境破壞。儘管阻燃劑很重要，但它始終佔野火撲滅總成本的低至中位數百分比，從而提供了巨大的客戶價值。

Fourth economic criteria for us is significant free cash flow generation with high returns on tangible capital. And with an approximately 40% EBITDA margin and low single digits CapEx as a percentage of revenue. Perimeter is, again, excellent on this metric. And lastly is the potential for opportunistic consolidation. We see potentially significant M&A opportunity ahead of us, both inside and outside of core Fire Safety, driven again and guided again by these 5 core economic characteristics.

我們的第四個經濟標準是顯著的自由現金流產生和高有形資本回報。 EBITDA 利潤率約為 40%，資本支出佔收入的比例較低。週長在這個指標上再次表現出色。最後是機會主義整合的潛力。我們看到潛在的重大併購機會擺在我們面前，無論是在核心消防安全領域的內部還是外部，在這 5 個核心經濟特徵的再次推動和指導下。

And Haitham will talk more about M&A, and more broadly, capital allocation in a moment. And with that, I will turn things over to you, Haitham. Thanks.

海瑟姆稍後將更多地談論併購，以及更廣泛的資本配置。這樣，我就把事情交給你了，海瑟姆。謝謝。

Thank you, Will. Turning to Slide 5, investment framing, which summarizes our long-term Perimeter investment case. The top section of the slide lists our base case operating assumptions. Specifically, we expect base case volume growth in Perimeter's Fire Safety segment of mid- to high-single digits. This compares to approximately 10% of volume growth over the last decade or so with the drivers of prospective volume growth largely unchanged relative to those of historical growth. Again, these drivers are: one, longer and more severe fire seasons; two, growth in the wildland urban interface; and three, increasing air tanker capacity.

謝謝你，威爾。轉向投影片 5，投資框架，它總結了我們的長期週邊投資案例。投影片的頂部列出了我們的基本案例操作假設。具體來說，我們預計 Perimeter 消防安全領域的基本案例銷售將實現中高個位數成長。相比之下，過去十年左右的銷量成長約為 10%，而預期銷量成長的驅動因素相對於歷史成長基本上沒有變化。同樣，這些驅動因素是：第一，火災季節更長、更嚴重；二、荒地城市界面的生長；三是增加空中加油機運力。

We expect base case price growth in Perimeter's Fire Safety segment of mid-single digits. This is roughly in line with Perimeter's historical performance and is primarily a function of our products' uniquely high criticality to cost ratio. Our base case for the Oil Additives segment is approximately flat revenue and adjusted EBITDA. This is roughly in line with the segment's historical performance. We expect Perimeter's consolidated adjusted EBITDA margins to expand between 100 and 200 basis points annually. This, again, is in line with the company's historical pace of adjusted EBITDA margin expansion.

我們預計 Perimeter 消防安全部門的基本情況價格將成長為中個位數。這與 Perimeter 的歷史表現大致相符，主要是因為我們的產品具有獨特的高關鍵成本比。我們石油添加劑部門的基本情況是收入和調整後的 EBITDA 大致持平。這與該部門的歷史表現大致相符。我們預計 Perimeter 的綜合調整後 EBITDA 利潤率將每年擴大 100 至 200 個基點。這再次符合該公司調整後 EBITDA 利潤率擴張的歷史步伐。

The graphic at the bottom of the page summarizes our expectations around long-term revenue and adjusted EBITDA growth. We expect Perimeter to grow consolidated revenue approximately 10% and to grow consolidated adjusted EBITDA in the mid-teens prior to any significant capital allocation or capital structure actions. Note that these outcomes are generally in line with the company's historical performance. Specifically, in the decade through 2020, Perimeter grew revenue at a 12% CAGR and grew adjusted EBITDA at an 18% CAGR, with the vast majority of both these growth rates organic in nature. Hopefully, this slide helps convey why we're confident in attaining our long-term return objectives at Perimeter.

頁面底部的圖表總結了我們對長期收入和調整後 EBITDA 成長的預期。我們預計，在採取任何重大資本配置或資本結構行動之前，Perimeter 的綜合收入將成長約 10%，綜合調整後 EBITDA 將成長到十幾歲左右。請注意，這些結果總體上與公司的歷史業績相符。具體來說，在截至 2020 年的十年中，Perimeter 的收入複合年增長率為 12%，調整後的 EBITDA 複合年增長率為 18%，其中絕大多數增長率本質上是有機增長率。希望這張投影片有助於傳達為什麼我們對實現 Perimeter 的長期回報目標充滿信心。

As we've noted, we will strive to enhance these base case returns through: number one, consistent improvement in our 3 operational value drivers; number two, disciplined and high ROIC capital allocation; and number three, the active management of our capital structure.

正如我們所指出的，我們將努力透過以下方式提高這些基本情況回報：第一，持續改善我們的 3 個營運價值驅動因素；第二，嚴格的、高投入資本報酬率的資本配置；第三，積極管理我們的資本結構。

I'll now take a moment to discuss our perspective on capital allocation on Slide 6. Note that the first 3 columns on the slide represent our 3 operational value drivers, which Nick referenced earlier. I'll focus on the rightmost column titled Capital Allocation. We understand how much value an active and consistently high ROIC M&A program can add to long-term equity returns, and we hope to capture this value on behalf of our shareholders. It's important to point out, however, that we believe we're in the very fortunate position of not requiring M&A in order to attain our long-term targets.

現在，我將花點時間討論我們對幻燈片 6 上的資本配置的看法。我將重點放在最右邊標題為「資本配置」的欄位。我們了解積極且持續高投資報酬率的併購計畫可以為長期股權回報增加多少價值，我們希望代表我們的股東獲得這一價值。然而，重要的是要指出，我們相信我們處於非常幸運的位置，不需要併購來實現我們的長期目標。

Specifically, we expect to meet or exceed our long-term IRR target at Perimeter through base case organic performance, plus execution on our 3 operational value drivers, the management of our capital structure and returning capital to shareholders by either buybacks or special dividends. To this end, our Board authorized a $100 million share repurchase program, which gives us the flexibility to implement a capital return strategy should we decide to do so.

具體來說，我們希望透過基本情況有機績效、執行我們的 3 個營運價值驅動因素、管理我們的資本結構以及透過回購或特別股息向股東返還資本，來達到或超過 Perimeter 的長期 IRR 目標。為此，我們的董事會批准了一項 1 億美元的股票回購計劃，這使我們能夠靈活地實施資本回報策略（如果我們決定這樣做）。

Given this confidence in our organic trajectory, 2 conditions must be present for us to deploy capital towards M&A. Number one, the target must be consistent with our 5 target economic criteria; and number two, the acquisition must be accretive to our projected stand-alone base case equity IRR, where the stand-alone IRR includes capital structure management and either buybacks and/or dividends. The combination of these 2 necessary conditions creates a high bar for acquisitions, especially in light of the stand-alone returns we expect to deliver at Perimeter.

鑑於對我們有機發展軌蹟的信心，我們必須滿足兩個條件才能將資本用於併購。第一，目標必須符合我們的5個目標經濟標準；第二，收購必須增加我們預期的獨立基本情況股權 IRR，其中獨立 IRR 包括資本結構管理以及回購和/或股利。這兩個必要條件的結合為收購創造了很高的門檻，特別是考慮到我們期望在 Perimeter 實現的獨立回報。

However, we will put forth a focused and consistent effort to identify acquisitions that clear this bar and create long-term equity value. We'll actively evaluate acquisitions, both within and outside of Fire Safety. Our search will always be guided by our target economic criteria and will always be scrutinized against strict IRR hurdles. We do expect to identify attractive and IRR-enhancing opportunities over time. When we do, we won't hesitate to swing the bat.

然而，我們將集中一致地努力尋找能夠跨越這一障礙並創造長期股權價值的收購。我們將積極評估消防安全內部和外部的收購。我們的搜尋將始終以我們的目標經濟標準為指導，並將始終根據嚴格的 IRR 障礙進行審查。我們確實希望隨著時間的推移發現有吸引力且提高內部收益率的機會。當我們這樣做時，我們會毫不猶豫地揮棒。

I'll close my remarks on Slide 7 with a brief comment on the year-to-date performance of the business relative to our expectations from earlier this year. I'll start with Fire Safety. We're extremely pleased with the performance of our Fire Safety business, which delivered 13% year-over-year adjusted EBITDA growth in both the third quarter and the 9-month period.

在結束我對幻燈片 7 的發言時，我將簡要評論該公司今年迄今為止的業績與我們今年早些時候的預期相比。我將從消防安全開始。我們對消防安全業務的表現非常滿意，第三季和前 9 個月的調整後 EBITDA 年成長 13%。

As Nick mentioned, these results have comfortably exceeded our expectations and were achieved in the face of 2 uniquely challenging circumstances. First, 2020 was the highest acreage burned year in recorded U.S. history. We expect 2021 acreage burned, ex Alaska, to end the year down approximately 25% versus last year and come in very roughly in line with the long-term trend line. Second, we faced significant challenges this year relating to supply chain, raw materials and transportation.

正如尼克所提到的，這些結果完全超出了我們的預期，並且是在兩個獨特的具有挑戰性的情況下取得的。首先，2020 年是美國史上燒毀面積最高的一年。我們預計 2021 年（阿拉斯加除外）燒毀面積將比去年減少約 25%，與長期趨勢線大致一致。其次，今年我們在供應鏈、原料和運輸方面面臨重大挑戰。

Despite these challenges, we delivered on our commitment to support our customers' efforts 100% of the time, while also delivering excellent growth and margin performance. It's terrific to see the Fire Safety business off to such a solid start.

儘管面臨這些挑戰，我們仍兌現了 100% 支持客戶努力的承諾，同時實現了出色的成長和利潤表現。看到消防安全業務有如此良好的開端真是太棒了。

Moving on to OA. The first half of the year was strong, so in large part due to lapping a COVID-impacted period from 2020. The third quarter was softer, though largely due to materially higher costs for transportation and certain raw materials. We expect to ultimately pass through these higher transportations and raw material costs. Year-to-date performance in the OA segment is roughly flat, which is in line with our expectations from earlier this year and consistent with our long-term expectations for the segment.

轉向OA。今年上半年表現強勁，這在很大程度上是由於自 2020 年起受新冠疫情影響的時期過去了。我們預計最終將克服這些較高的運輸和原材料成本。 OA 領域年初至今的業績大致持平，這符合我們今年稍早的預期，也符合我們對該領域的長期預期。

With that, I'll turn the call over to our CEO, Eddie Goldberg. Eddie?

接下來，我會將電話轉給我們的執行長 Eddie Goldberg。艾迪？

Thanks, Haitham. I'll start by discussing some of our notable accomplishments during the year. I'll then provide updates on more strategic and operational items. And finally, I'll review our quarterly and year-to-date results by business segment before turning it over to Barry. Alongside our strong financial performance, I'm proud of what we've accomplished so far this year as we summarized on Slide 8. Most importantly, we met our commitments to our customers with 100% reliability in support of their mission to save lives, property and the environment.

謝謝，海瑟姆。我將首先討論我們在這一年中取得的一些顯著成就。然後我將提供更多戰略和營運項目的最新資訊。最後，我將按業務部門審查我們的季度和年初至今的業績，然後再交給巴里。除了我們強勁的財務表現之外，我對我們今年迄今為止所取得的成就感到自豪，正如我們在幻燈片8 中總結的那樣。承諾，支持他們拯救生命的使命，財產和環境。

In what was an extremely challenging supply chain and logistics environment, we delivered every load and loaded every air tanker all without any disruption. We completed the qualification process for our new PHOS-CHEK FORTIFY product designed to provide durable season-long protection. We believe FORTIFY is a game changer in the fire prevention and protection market. We continued this successful transition to our new PHOS-CHEK LCE20-Fx liquid concentrate retardant. LCE20 is the world's first technical grade liquid concentrate and provides improved safety, health and environmental characteristics, increased effectiveness and improved stability.

在極具挑戰性的供應鏈和物流環境中，我們順利交付了每批貨物並裝載了每架空中加油機。我們完成了新 PHOS-CHEK FORTIFY 產品的認證流程，該產品旨在提供持久的全季保護。我們相信 FORTIFY 是防火和防護市場的遊戲規則改變者。我們繼續成功過渡到新型 PHOS-CHEK LCE20-Fx 液體濃縮阻燃劑。 LCE20 是世界上第一種工業級液體濃縮物，具有更高的安全性、健康和環境特性、更高的有效性和更高的穩定性。

In our Fire Suppressant business, we introduced new fluorine-free Class B firefighting foams, and we continue to make great progress as we work to move the industry toward a fluorine-free landscape.

在滅火劑業務方面，我們推出了新型無氟B級消防泡沫，並持續取得長足進步，致力於推動產業走向無氟格局。

As we look forward to the next several years and beyond, we continue to see great consistency in the trends driving the global wildfire business relative to the last decade or so. Those trends are increased fire severity and longer fire seasons, continued growth in the wildland-urban interface and expansion of air tanker capacity. And we expect these trends to continue to drive growth in retardant demand over the long term.

當我們展望未來幾年及更長的時間時，我們繼續看到，與過去十年左右相比，推動全球野火業務的趨勢非常一致。這些趨勢包括火災嚴重程度增加、火災季節延長、荒地與城市界面的持續增長以及空中加油機容量的擴大。我們預計，從長遠來看，這些趨勢將繼續推動阻燃劑需求的成長。

As the most effective way to keep fire small and protect people's lives, property and the environment, we believe aerial attack with our long-term retardant will become even more mission-critical in the future, and we are working hard alongside our agency partners to increase our capabilities to support increasing demand.

作為控制小火併保護人們生命、財產和環境的最有效方法，我們相信使用我們的長效阻燃劑進行空中攻擊將在未來變得更加關鍵，我們正在與我們的代理合作夥伴一起努力提高我們的能力來支持不斷增長的需求。

And the growth that we are seeing in the U.S. is not unique. The rest of the world is seeing similar trends in wildfire. In Australia, one of the fastest-growing regions, we acquired our distributor earlier this year to enable us to work more directly with the agencies to better support the growth in their aerial programs. Over the coming years, we expect to see expansion in this market and growth in our retardant volumes.

我們在美國看到的成長並不是獨一無二的。世界其他地區的野火也出現了類似的趨勢。在成長最快的地區之一的澳大利亞，我們在今年稍早收購了我們的經銷商，以便我們能夠更直接地與各機構合作，更好地支持他們航空項目的成長。未來幾年，我們預計該市場將擴大，阻燃劑產量將成長。

Finally, I want to provide a little more color on our prevention and protection business. The same way that our traditional fire retardant products work to slow or stop active wildfires, they can be used to prevent fire ignitions and to protect property from potential fire danger. For fire prevention, we focus on high hazard industries like electrical utilities, railroads and departments of transportation to provide proactive retardant treatment in high-risk areas.

最後，我想為我們的預防和保護業務提供更多的色彩。就像我們的傳統阻燃產品減緩或阻止活躍的野火一樣，它們也可用於防止火災點燃並保護財產免受潛在的火災危險。在防火方面，我們專注於電力、鐵路、交通等高風險產業，對高風險區域進行主動阻燃處理。

Treating these areas ahead of the fire season can potentially stop ignitions from equipment failures or sparks and stopping large devastating fires from starting saves lives and communities. Our new FORTIFY product applied before or early in the season can provide protection all season long.

在火災季節之前對這些區域進行處理可能會阻止設備故障或火花引起的火災，並阻止大規模毀滅性火災的發生，從而拯救生命和社區。我們的新 FORTIFY 產品在賽季前或賽季初期使用，可以在整個賽季提供保護。

In addition, FORTIFY can proactively be applied to protect high-value assets and critical infrastructure from the danger of wildfire. In August of this year, Perimeter treated the Reagan Ranch outside of Santa Barbara, California with FORTIFY to protect the structures on the Ranch from wildfire danger. As the Alisal Fire in October threatened the Ranch, heroic efforts by local firefighters along with our retardant ensured the Ranch did not suffer damage.

此外，FORTIFY 還可以主動應用於保護高價值資產和關鍵基礎設施免受野火的危險。今年 8 月，Perimeter 使用 FORTIFY 對加州聖塔芭芭拉郊外的里根牧場進行了處理，以保護牧場上的建築物免受野火危險。當 10 月的阿利薩爾火災威脅牧場時，當地消防員和我們的阻燃劑的英勇努力確保了牧場沒有遭受損壞。

We expect over the next several years to see demand for our prevention and protection products and services to increase. Let me now touch briefly on our market position. Hardly a day has passed over the last 15 years without someone trying to qualify and sell a competing retardant product. Some have attempted to compete quietly while others have done so quite loudly. What has remained consistent is that no one other than Perimeter has sold a commercially significant amount of retardant and not one of our historical would-be competitors is active in the market today. We are sure that other aspiring entrants will come and go in the future. And while we always take potential competitors very seriously, we are as confident as ever in our long-term market position.

我們預計未來幾年對我們的預防和保護產品和服務的需求將會增加。現在讓我簡要談談我們的市場地位。在過去 15 年裡，幾乎沒有一天沒有人試圖鑑定並銷售競爭性阻燃產品。有些人試圖安靜地競爭，而有些人則相當大聲地這樣做。始終如一的是，除了 Perimeter 之外，沒有一家公司銷售了商業上大量的阻燃劑，而且我們歷史上的潛在競爭對手沒有一家活躍在當今的市場上。我們確信，未來還會有其他有抱負的參與者來來去去。儘管我們始終非常認真地對待潛在競爭對手，但我們對自己的長期市場地位一如既往地充滿信心。

I'll now review our revenue and adjusted EBITDA growth and margins by segment, as you can see on Slide 9. I'll start with our Fire Safety segment, which accounted for over 95% of our adjusted EBITDA in Q3 and over 85% in the year-to-date period. Fire Safety delivered Q3 revenue growth of 14% and year-to-date revenue growth of 11% compared to the prior year periods. Adjusted EBITDA in our Fire Safety segment increased 13% in both the third quarter and year-to-date periods compared to the prior year periods. And Fire Safety adjusted EBITDA margin expanded approximately 100 basis points in the year-to-date period, which is in line with our long-term expectations.

現在，我將按部門回顧我們的收入、調整後EBITDA 成長和利潤率，如幻燈片9 所示。佔85% 以上今年迄今。與去年同期相比，消防安全第三季營收成長 14%，年初至今營收成長 11%。與去年同期相比，我們消防安全部門的調整後 EBITDA 在第三季和年初至今均成長了 13%。今年迄今，消防安全調整後的 EBITDA 利潤率擴大了約 100 個基點，符合我們的長期預期。

Fire Safety adjusted EBITDA margin was flat at 57% in both Q3 2021 and 2020, primarily due to a lower margin product mix in Q3 2021 versus Q3 2020. We're pleased with the performance of our Fire Safety segment in both the quarter and year-to-date period. The 2020 revenue comparison was extremely challenging, yet our retardant volume significantly outperformed acres burned as we clearly experienced the benefit of the long-term structural volume drivers that we've discussed, namely a longer fire season, a continued strategy of aggressive aerial attack and continued growth in the air tanker fleet. We also faced supply chain, raw material and transportation challenges during the year, yet we managed to expand margins in the 9-month period and hold margins steady in the third quarter.

消防安全調整後的EBITDA 利潤率在2021 年第三季和2020 年第三季均維持在57%，主要是因為2021 年第三季的產品組合利潤率低於2020 年第三季。安全部門在本季度和年度的表現感到滿意- 迄今為止的時期。 2020 年的收入比較極具挑戰性，但我們的阻燃劑銷量明顯優於燃燒面積，因為我們清楚地體驗到了我們討論過的長期結構性銷量驅動因素的好處，即更長的火災季節、持續的積極空中攻擊策略和空中加油機機隊持續成長。我們在這一年中也面臨供應鏈、原材料和運輸方面的挑戰，但我們成功地在 9 個月內擴大了利潤率，並在第三季度保持了穩定的利潤率。

Turning to our Oil Additives segment, which accounted for less than 5% of our adjusted EBITDA in the quarter and less than 15% of our adjusted EBITDA in the year-to-date period. OA revenue declined 1% in the third quarter and increased 13% in the 9-month period. The year-to-date revenue comparison was positively impacted by lapping a depressed period related to COVID impacts in 2020.

說到我們的石油添加劑部門，該部門占我們本季調整後 EBITDA 的比例不到 5%，占我們年初至今調整後 EBITDA 的比例不到 15%。第三季 OA 營收下降 1%，前 9 個月成長 13%。 2020 年經歷了與新冠疫情影響相關的低迷時期，對年初至今的收入比較產生了積極影響。

Q3 revenue performance was slightly weaker than expected, though roughly in line with our long-term expectations for flat performance in this segment. Adjusted EBITDA in our OA segment declined in the third quarter and margins compressed. This was primarily due to slightly weaker-than-expected revenue as well as materially higher costs for certain raw materials as well as transportation. And we expect to pass on these raw material and transportation costs and therefore, expect headwinds to be transitory. We continue to expect our OA segment to be roughly flat, both in 2021 and over time.

第三季營收表現略弱於預期，但大致符合我們對該細分市場表現持平的長期預期。我們的 OA 部門的調整後 EBITDA 在第三季有所下降，利潤率也有所壓縮。這主要是由於收入略低於預期以及某些原材料和運輸成本大幅上漲。我們預計將轉嫁這些原材料和運輸成本，因此預計阻力將是暫時的。我們仍然預計 OA 細分市場在 2021 年和未來一段時間內將大致持平。

On a consolidated basis, revenue increased 12% in both the quarter and the year-to-date period, while adjusted EBITDA increased 9% in the third quarter and 12% in the year-to-date period.

綜合來看，本季和年初至今營收均成長 12%，調整後 EBITDA 在第三季成長 9%，年初至今成長 12%。

Now let me spend a moment on the high-level distribution of EBITDA throughout fiscal year to give investors a better understanding of the seasonal impacts on our business and financial results. Our Fire Safety business, which accounts for over 80% of our adjusted EBITDA tends to generate approximately 80% to 90% of its annual adjusted EBITDA in the second and third quarters combined, with a stronger weighting toward the third quarter. Only 10% to 20% of Fire Safety adjusted EBITDA is typically generated in the first and fourth quarters combined.

現在，讓我花點時間介紹整個財年 EBITDA 的高級分佈，以便讓投資者更了解季節性對我們業務和財務表現的影響。我們的消防安全業務佔調整後 EBITDA 的 80% 以上，往往會在第二季和第三季合計產生約 80% 至 90% 的年度調整後 EBITDA，其中第三季的權重更大。第一季和第四季的總和通常只產生消防安全調整後 EBITDA 的 10% 到 20%。

Our Oil Additives business, which accounts for less than 20% of our adjusted EBITDA has fairly consistent EBITDA distribution across quarters, though can experience quarterly impacts based on the timing of customers' facility closures for plant maintenance. And I'll close with a quick comment regarding our approach to forward guidance. We believe that our business is highly recurring and predictable over the medium and long term. As such, we're comfortable sharing and is necessary updating our long-term assumptions and expectations.

我們的石油添加劑業務佔調整後 EBITDA 的比例不到 20%，各季度的 EBITDA 分佈相當一致，但可能會根據客戶因工廠維護而關閉設施的時間而受到季度影響。最後，我將簡要地評論我們的前瞻性指引方法。我們相信，從中長期來看，我們的業務具有高度重複性和可預測性。因此，我們願意分享，並且有必要更新我們的長期假設和期望。

However, as we've noted, our annual performance is subject to fluctuations in the severity of the North American wildfire season, which we cannot predict. We will therefore refrain from providing annual or quarterly guidance.

然而，正如我們所指出的，我們的年度業績將受到北美野火季節的嚴重程度影響，而我們無法預測這一點。因此，我們將不提供年度或季度指導。

And with that, I would like to turn the call over to our Chief Financial Officer, Barry Lederman.

說到這裡，我想將電話轉給我們的財務長巴里·萊德曼 (Barry Lederman)。

Thanks, Eddie. Turning to Slides 10 and 11. Third quarter sales in our Fire Safety segment were $172.4 million, up 14% versus the prior year. Year-to-date sales in our Fire Safety segment were $237.3 million, up 11% versus the prior year. Substantially, all revenue growth in the segment was organic in both the third quarter and the year-to-date periods. Third quarter adjusted EBITDA in our Fire Safety segment was $97.8 million, up 13% versus the prior year. Year-to-date adjusted EBITDA in our Fire Safety segment was $116.7 million, also up 13% versus the prior year.

謝謝，艾迪。轉向幻燈片 10 和 11。年初至今，我們消防安全部門的銷售額為 2.373 億美元，比上年成長 11%。實質上，該部門的所有收入成長在第三季和今年迄今都是有機的。消防安全部門第三季調整後 EBITDA 為 9,780 萬美元，比上年增加 13%。消防安全部門今年迄今調整後的 EBITDA 為 1.167 億美元，也比前一年成長 13%。

Switching gears to Oil Additives. Third quarter sales in our Oil Additives segment were $23 million, down 1% versus the prior year. Year-to-date sales in our Oil Additives segment were $79.2 million, up 13% versus the prior year. Third quarter adjusted EBITDA in our Oil Additives segment was $2.5 million, down from $5.6 million in the prior year. As Eddie referenced, raw material and transportation costs impacted this result in Q3. We expect to pass on these costs, therefore, expect profitability in this segment to recover in 2022. Year-to-date adjusted EBITDA in our Oil Additives segment was $17.9 million, up from $17.2 million in the prior year.

轉向油添加劑。我們的石油添加劑部門第三季銷售額為 2,300 萬美元，比上年下降 1%。我們石油添加劑部門的年初至今銷售額為 7,920 萬美元，比上年增長 13%。我們的石油添加劑部門第三季調整後 EBITDA 為 250 萬美元，低於前一年的 560 萬美元。正如艾迪所提到的，原料和運輸成本影響了第三季的結果。我們預計將轉嫁這些成本，因此預計該部門的盈利能力將在 2022 年恢復。 我們石油添加劑部門的年初至今調整後 EBITDA 為 1,790 萬美元，高於上一年的 1,720 萬美元。

Now for the consolidated entity. Third quarter consolidated revenue was $195.4 million, up 12% versus the prior year. Year-to-date consolidated revenue was $316.5 million, also up 12% versus the prior year. Third quarter consolidated adjusted EBITDA was $100.3 million, up 9% versus the prior year. Year-to-date consolidated adjusted EBITDA was $134.6 million, up 12% versus the prior year. Interest expense in the quarter was approximately $8.1 million. Going forward, based on our new senior credit facility, we expect annual cash interest expense of approximately $40 million.

現在是合併實體。第三季綜合營收為 1.954 億美元，比上年成長 12%。年初至今的綜合收入為 3.165 億美元，也比上年增長 12%。第三季綜合調整後 EBITDA 為 1.003 億美元，比上年成長 9%。年初至今，綜合調整後 EBITDA 為 1.346 億美元，比上年成長 12%。本季利息支出約 810 萬美元。展望未來，根據我們新的高級信貸安排，我們預計年度現金利息支出約為 4000 萬美元。

Depreciation was $1.9 million in Q3, while amortization expense was $13.3 million. Going forward, we expect tax deductible, depreciation and amortization of between $7 million to $10 million annually. Our tax rate during the quarter was 26.4%. Based on the current information we have, the expected ongoing effective tax rate, excluding lost jurisdictions that we are unable to utilize the benefits and excluding the impacts from purchase accounting as well as transaction-related costs will be approximately 26%. CapEx during the quarter was $1.6 million. We expect approximately $10 million of annual CapEx going forward.

第三季折舊為 190 萬美元，攤提費用為 1,330 萬美元。展望未來，我們預計每年的減稅、折舊和攤提將在 700 萬至 1,000 萬美元之間。本季我們的稅率為 26.4%。根據我們目前掌握的信息，不包括我們無法利用這些好處的失去的司法管轄區，也不包括採購會計以及交易相關成本的影響，預計持續有效稅率約為 26%。本季資本支出為 160 萬美元。我們預計未來年度資本支出約為 1000 萬美元。

We suggest investors model the annual change in working capital going forward at approximately 10% to 20% of the change in sales, such that a $10 million change in sales should lead to a $1 million to $2 million change in working capital. Please note that the timing of when the sales occur will influence these numbers.

我們建議投資者將未來營運資本的年度變化建模為銷售額變化的約 10% 至 20%，這樣銷售額變化 1000 萬美元應導致營運資本變化 100 萬至 200 萬美元。請注意，銷售發生的時間將影響這些數字。

We ended the quarter with debt of $696.5 million and cash of $39.6 million. Though these are prior to our recapitalization and listing, on a consolidated level, we expect to end the year with net debt of approximately $450 million. We currently have approximately 157 million shares outstanding.

本季結束時，我們的債務為 6.965 億美元，現金為 3,960 萬美元。儘管這些是在我們的資本重組和上市之前，但在合併水準上，我們預計到年底淨債務約為 4.5 億美元。我們目前擁有約 1.57 億股已發行股票。

With that, I'll hand it back over to the operator for Q&A.

這樣，我會將其交還給操作員進行問答。

(Operator Instructions)

（操作員說明）

Our first question today is coming from Michael Press from Tiger Eye Capital.

我們今天的第一個問題來自虎眼資本的 Michael Press。

As you mentioned earlier, acres burned is down 25% year-over-year this year and below the 10-year average. Yet you grew Fire Safety revenues by 14% in the third quarter despite the tough comp to the record-setting 2020. It seems we don't have to bet on record fire years in order for PRM to grow nicely. Can you discuss more specifically how air tanker capacity is driving your growth? What is the outlook for future growth in air tanker capacity?

正如您之前提到的，今年燒毀面積年減 25%，低於 10 年平均值。然而，儘管與創紀錄的 2020 年相比，第三季消防安全收入增加了 14%。您能否更具體地討論一下空中加油機運力如何推動您的成長？未來空中加油機運力成長前景如何？

Sure. It's a great question. Thank you. As you mentioned, the amount of retardant, the revenue for the business outpaced acres burned. We continue to see this consistent with the drivers that we have, which are longer fire seasons, growth on the wildland urban interface and the increase in tanker capacity. We do expect to see those drivers to continue consistently with our expectations over the long term. And as we -- as those move forward, we do believe that we will continue to see growth that becomes more in excess of acres burned trends.

當然。這是一個很好的問題。謝謝。正如您所提到的，阻燃劑的數量、企業的收入超過了燃燒的面積。我們仍然認為這與我們現有的驅動因素一致，即火災季節更長、荒地城市介面的增長以及油輪容量的增加。我們確實希望看到這些驅動因素長期持續符合我們的預期。隨著這些進展，我們確實相信我們將繼續看到增長超過燒毀面積的趨勢。

And 1 quick follow up. On the operational side, can you discuss ways in which PRM is now utilizing the TransDigm playbook to enhance profitability?

和 1 快速跟進。在營運方面，您能否討論一下 PRM 目前如何利用 TransDigm 手冊來提高獲利能力？

Sure. We are very focused on doing the things that are included in those value drivers, we usually pay a lot of attention to making sure that we price our products for the value that they create. We're laser-focused on looking at operational efficiencies and reducing our costs. And obviously, as we discussed, we've got a number of significant growth opportunities that we're focused on in our business. So those are all very consistent with those value drivers.

當然。我們非常專注於做這些價值驅動因素中包含的事情，我們通常會非常注意確保我們的產品定價符合它們創造的價值。我們專注於提高營運效率和降低成本。顯然，正如我們所討論的，我們在業務中擁有許多重要的成長機會。所以這些都與那些價值驅動因素非常一致。

(Operator Instructions)

（操作員說明）

We've reached the end of our question-and-answer session. I'd like to turn the floor back over to management for any further or closing comments.

我們的問答環節已經結束。我想將發言權交還給管理階層，以徵求進一步的意見或結束意見。

Great. Thank you. Yes, I want to thank everybody for dialing in to our first earnings call. I look forward to talking to you again when we report fourth quarter and full year 2021 earnings. Thank you.

偉大的。謝謝。是的，我要感謝大家撥打我們的第一次財報電話會議。我期待在我們報告 2021 年第四季和全年收益時再次與您交談。謝謝。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。