Primo Brands Corp (PRMB) 2023 Q2 法說會逐字稿

Good morning. My name is Julie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Primo Water Corporation's Second Quarter 2023 Earnings Conference Call. (Operator Instructions) I will now turn the call over to Jon Kathol, Vice President, Investor Relations. Please go ahead.

早上好。我叫朱莉，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Primo Water Corporation 2023 年第二季度收益電話會議。 （操作員指示）我現在將電話轉給投資者關係副總裁 Jon Kathol。請繼續。

Welcome to Primo Water Corporation's Second Quarter 2023 Earnings Conference Call. (Operator Instructions). This call will end no later than 11:00 a.m. Eastern Time. The call is being webcast live on Primo Water's website at primowatercorp.com and will be available for playback there for 2 weeks.

歡迎參加 Primo Water Corporation 2023 年第二季度收益電話會議。 （操作員說明）。此次通話將在東部時間上午 11:00 之前結束。此次電話會議正在 Primo Water 網站 primowatercorp.com 上進行網絡直播，並將在該網站上播放兩週。

This conference call contains forward-looking statements, including statements concerning the company's future financial and operational performance. These statements should be considered in connection with cautionary statements and disclaimers contained in the safe harbor statements in this morning's press release and the company's annual report on Form 10-K and quarterly reports on Form 10-Q and other filings with securities regulators.

本次電話會議包含前瞻性陳述，包括有關公司未來財務和運營業績的陳述。這些聲明應與今天上午新聞稿中的安全港聲明中包含的警告聲明和免責聲明以及公司 10-K 表格年度報告和 10-Q 表格季度報告以及其他向證券監管機構提交的文件一起考慮。

The company's actual performance could differ materially from these statements, and the company undertakes no duty to update these forward-looking statements, except as expressly required by applicable law.

公司的實際業績可能與這些陳述存在重大差異，公司不承擔更新這些前瞻性陳述的責任，除非適用法律明確要求。

A reconciliation of any non-GAAP financial measures discussed during the call with the most comparable measures in accordance with GAAP, when the data is capable of being estimated, is included in the company's second quarter earnings announcement released earlier this morning or on the Investor Relations section of the company's website at primowatercorp.com. We have also included a deck on our website that was designed to assist you throughout our discussion.

當數據能夠進行估計時，電話會議期間討論的任何非公認會計原則財務指標與根據公認會計原則的最具可比性的指標的對賬，將包含在公司今天上午早些時候發布的第二季度收益公告或投資者關係中該公司網站 primowatercorp.com 的部分。我們還在我們的網站上提供了一個演示文稿，旨在幫助您完成我們的討論。

I'm accompanied by Tom Harrington, Primo Water's Chief Executive Officer; and David Hass, Chief Financial Officer. Tom will start today's call by providing a high-level review of the second quarter and our progress on Primo Water's strategic initiatives. Then David will review our segment-level performance, and we'll discuss our second quarter performance in greater detail and offer our outlook for the full year 2023 before handing the call back to Tom to provide a long-term view ahead of Q&A. With that, I will now turn the call over to Tom.

陪同我的是 Primo Water 首席執行官 Tom Harrington；和首席財務官大衛·哈斯。 Tom 將首先對第二季度以及我們在 Primo Water 戰略舉措方面的進展進行高層回顧。然後 David 將回顧我們的細分市場業績，我們將更詳細地討論我們第二季度的業績，並提供我們對 2023 年全年的展望，然後將電話轉給 Tom，在問答之前提供長期觀點。這樣，我現在將把電話轉給湯姆。

Thank you, Jon, and good morning, everyone. Before I cover the results of our second quarter, I would like to take a moment to thank those of you who participated in our recent investor perception study conducted by [Revel]. We appreciate the suggestions, the candor and the insights from your perspective, and we'll certainly take them into consideration, going forward.

謝謝你，喬恩，大家早上好。在介紹第二季度的結果之前，我想花點時間感謝那些參與我們最近由 [Revel] 進行的投資者看法研究的人們。我們感謝您的建議、坦誠和見解，我們一定會在今後的工作中考慮它們。

I would also like to thank the Primo Water teams for their contributions to the continuing momentum of the business in delivering another quarter of strong results.

我還要感謝 Primo Water 團隊為業務的持續發展勢頭做出的貢獻，讓他們在又一個季度取得了強勁的業績。

As you know, I announced my retirement at the end of 2023, and the Board has initiated a search for my successor. The Board, with the support of an international search firm, is currently conducting the search process and meeting a number of highly qualified candidates. To ensure a smooth transition, I have agreed to continue to serve as CEO and on the Board until a successor has been identified and appointed.

如您所知，我於 2023 年底宣布退休，董事會已開始尋找我的繼任者。董事會在一家國際獵頭公司的支持下，目前正在進行搜索過程並會見一些高素質的候選人。為了確保平穩過渡，我同意繼續擔任首席執行官和董事會成員，直到確定並任命繼任者為止。

As you can see from our results, the business continues to perform well and is well positioned for the future. In Q2, we delivered normalized FX-neutral revenue growth of 8%, adjusted EBITDA growth of 13%, adjusted EBITDA margin of 20.5%, a 160 basis point overall increase versus the prior year; adjusted free cash flow of $41 million and sell-through of approximately 251,000 water dispensers.

正如您從我們的業績中看到的，該業務繼續表現良好，並為未來做好了準備。第二季度，我們實現了正常化的匯率中性收入增長 8%，調整後 EBITDA 增長 13%，調整後 EBITDA 利潤率為 20.5%，總體較上年增長 160 個基點；調整後的自由現金流為 4100 萬美元，售出約 251,000 台飲水機。

For Q2 2023, Consolidated revenue increased to 4% to $593 million compared to $571 million. Excluding the impact of foreign exchange, normalized revenue increased 8% for the quarter. Normalized revenue excludes the exit from the single-use retail bottle water business in North America and the exit of our business in Russia. Adjusted EBITDA increased $14 million to $122 million, an increase of 13%. Excluding the impact of foreign exchange, adjusted EBITDA grew 12%. We delivered increased revenue, adjusted EBITDA growth and adjusted EBITDA margin expansion.

2023 年第二季度，合併收入從 5.71 億美元增長至 5.93 億美元，增幅為 4%。排除外匯影響，本季度正常化收入增長 8%。標準化收入不包括北美一次性零售瓶裝水業務的退出和俄羅斯業務的退出。調整後 EBITDA 增加 1400 萬美元，達到 1.22 億美元，增幅為 13%。排除外匯影響，調整後 EBITDA 增長 12%。我們實現了收入增長、調整後 EBITDA 增長和調整後 EBITDA 利潤率擴張。

Revenue growth was driven by strong revenue growth in Water Direct and Exchange of 7%, continued revenue growth in Water Refill and Filtration of 18%, increased revenue growth in our European operations of 9%, excluding the impact of foreign exchange; and global Water Direct customer retention of approximately 85%, which was consistent with last quarter. Revenue growth in the quarter was driven by pricing actions. We believe that our investment in sales driven by Costco and our marketing initiatives, along with tuck-in acquisitions, will create customer growth by the end of 2023.

收入增長的推動因素包括 Water Direct 和 Exchange 收入強勁增長 7%、補水和過濾收入持續增長 18%、歐洲業務收入增長 9%（排除外匯影響）；全球 Water Direct 客戶保留率約為 85%，與上季度持平。本季度收入增長是由定價行為推動的。我們相信，Costco 推動的銷售投資、營銷舉措以及大量收購將在 2023 年底之前創造客戶增長。

The growth in customers is expected to reflect a combination of organic customer growth as well as the execution of our tuck-in strategy. As a reminder, our tuck-in acquisitions are a core component of our customer growth plan. These customers have strong retention rates, synergized within 90 days and enhanced route density, resulting in increased adjusted EBITDA dollars and margins in the [markets] were executed.

客戶的增長預計將反映客戶的有機增長以及我們的補充策略的執行。提醒一下，我們的收購是我們客戶增長計劃的核心組成部分。這些客戶擁有很高的保留率，在 90 天內實現協同效應，並提高了航線密度，從而增加了調整後的 EBITDA 美元和[市場]執行的利潤。

Through our razor/razorblade business model, we had Water Dispenser sell-through of approximately 251,000 units in the quarter, up 4% versus prior year. Consumer demand remains resilient as the higher-priced tariff-related dispensers continue to work through our and our retail customer inventories.

通過我們的剃須刀/剃須刀刀片業務模式，本季度飲水機銷量約為 251,000 台，比去年同期增長 4%。由於價格較高的關稅相關分配器繼續通過我們和我們的零售客戶庫存工作，消費者需求保持彈性。

Referring to Slide 7 of our supplemental deck, our trailing 12-month dispenser sell-through remains greater than 1 million units sold. As a reminder, Water Dispenser sell-through represents the units sold by our retail customers to the end consumer and are a leading indicator of the future organic growth of our water solutions. This is an important metric for the company because these Water Dispenser sales drive connectivity to our water solutions, resulting in recurring higher-margin revenue.

參考我們補充資料的幻燈片 7，我們過去 12 個月的飲水機銷量仍然超過 100 萬台。提醒一下，飲水機銷量代表我們的零售客戶向最終消費者銷售的單位，是我們水解決方案未來有機增長的領先指標。這對公司來說是一個重要指標，因為飲水機的銷售推動了與我們的水解決方案的連接，從而帶來了經常性的更高利潤的收入。

Our consolidated Water Direct and Exchange business continued to experience strong top line momentum during the quarter, with 7% revenue growth driven by pricing and 85% customer retention in Water Direct. During Q2, we continued to enhance our mobile app in North America with a biometric login and targeted messaging and offers.

我們的綜合 Water Direct 和交換業務在本季度繼續保持強勁的營收勢頭，定價推動收入增長 7%，Water Direct 的客戶保留率達到 85%。在第二季度，我們繼續通過生物識別登錄和有針對性的消息傳遞和優惠來增強我們在北美的移動應用程序。

The average active users of the app were approximately 500,000, an increase of 5% versus the first quarter while maintaining a 4.9 and 4.8 rating on Apple and Google stores, respectively. Our digital focus in 2023 remain centered on new Water Direct customer acquisitions, Water Dispenser sales and connectivity to our water solutions.

該應用的平均活躍用戶約為 50 萬，較第一季度增長 5%，同時在蘋果和谷歌商店中分別保持 4.9 和 4.8 的評分。 2023 年，我們的數字化重點仍然集中在新的 Water Direct 客戶獲取、飲水機銷售以及與我們的水解決方案的連接上。

During the quarter, we hired a Vice President of Marketing for our North American business and look forward to his contributions leading our efforts to improve customer growth, connectivity across all water services and further enhance the customer experience through new and more effective marketing initiatives. We also implemented a new software solution, Medallia, to engage directly with our customers in real time to solicit their feedback on our performance. We intend to extend the solution to Europe and Israel later this year.

本季度，我們聘請了北美業務營銷副總裁，並期待他做出貢獻，領導我們努力改善客戶增長、所有水務服務的連通性，並通過新的、更有效的營銷舉措進一步增強客戶體驗。我們還實施了新的軟件解決方案 Medallia，以直接與客戶實時互動，徵求他們對我們績效的反饋。我們打算在今年晚些時候將該解決方案擴展到歐洲和以色列。

Our Water Refill and Filtration business continues to exhibit steady growth, with revenue increasing 18% in the quarter. This growth is driven by pricing, improved service levels and machine uptime at our refill stations. We have a high refill station retention rate, and we are expecting continued revenue and profit growth in this category.

我們的加水和過濾業務繼續呈現穩定增長，本季度收入增長 18%。這一增長是由我們的加註站的定價、服務水平提高和機器正常運行時間推動的。我們的加油站保留率很高，我們預計該類別的收入和利潤將持續增長。

Water Refill targets a value-conscious consumer and provides similar margins to our other water offerings, which provides us a diverse platform of water services for all consumers.

Water Refill 針對注重價值的消費者，並提供與我們其他水產品相似的利潤，這為我們為所有消費者提供了多元化的水服務平台。

Consistent with our plan to grow the customer base through a combination of organic growth and tuck-in acquisition growth, we are pleased to announce that during the quarter, we acquired the Diamond Spring company, which operates in Richmond, Virginia. This acquisition adds density while further strengthening our footprint in the region.

根據我們通過有機增長和收購增長相結合來擴大客戶群的計劃，我們很高興地宣布，在本季度，我們收購了位於弗吉尼亞州里士滿的 Diamond Spring 公司。此次收購增加了密度，同時進一步加強了我們在該地區的足跡。

Shifting to operating efficiencies, the ability to serve our customers in the most efficient amount possible is a critical driver of both our short- and long-term profitability. Our automated route optimization, ARO, tool continues to yield efficiencies. We were able to increase revenue per route and units per day while keeping route SG&A expense as a percentage of route revenue consistent with Q2 of last year.

轉向運營效率，以盡可能最有效的方式為客戶提供服務的能力是我們短期和長期盈利能力的關鍵驅動力。我們的自動路線優化 ARO 工具不斷提高效率。我們能夠增加每條航線的收入和每天的單位數，同時保持航線 SG&A 費用佔航線收入的百分比與去年第二季度一致。

We will extend the use of ARO into our Refill and Filtration business later in 2023 to capture efficiencies and the improve service levels that this tool can deliver. In addition to capturing cost efficiencies, the reduction in mileage supports our commitments to reductions in greenhouse gas emissions.

我們將在 2023 年晚些時候將 ARO 的使用擴展到我們的補充和過濾業務中，以提高該工具可以提供的效率和服務水平。除了提高成本效率之外，里程的減少也支持了我們減少溫室氣體排放的承諾。

As part of our incremental CapEx investment, we increased the size of our private fleet, tractors and trailers to reduce the cost and variability associated with the use of common carriers. This fleet investment is specifically focused on the transportation of 3- and 5-gallon bottles from our production sites to our distribution centers.

作為增量資本支出投資的一部分，我們增加了私人車隊、牽引車和拖車的規模，以降低與使用公共承運人相關的成本和可變性。該車隊投資專門用於將 3 加侖和 5 加侖的瓶子從我們的生產基地運輸到我們的配送中心。

In the Pacific Northwest, for example, we invested $2 million in private fleet equipment, yielding a reduced cost of $1.3 million on an annualized basis. A key service metric we focus on is on time, in full, or OTIF. OTIF, simply put, is did we deliver to the customer on the scheduled day with all the products they requested. OTIF in North America in Q2 is consistent with prior quarters.

例如，在太平洋西北地區，我們投資了 200 萬美元購買私人車隊設備，年化成本降低了 130 萬美元。我們關注的一個關鍵服務指標是按時、按時或 OTIF。 OTIF，簡單地說，就是我們是否在預定的日期向客戶交付了他們要求的所有產品。第二季度北美地區的 OTIF 與前幾個季度保持一致。

During the quarter, we published our 2022 ESG or sustainability report. Since publishing our inaugural report covering 2020, we've further integrated our ESG sustainability strategies across our global business and aligned our operations with our commitments.

本季度，我們發布了 2022 年 ESG 或可持續發展報告。自發布 2020 年首份報告以來，我們進一步將 ESG 可持續發展戰略整合到我們的全球業務中，並使我們的運營與我們的承諾保持一致。

We made significant progress towards our initiatives in 2022, and achieved new milestones, as indicated in the report. A couple of our long-term 2030 targets include improving water efficiency by 20% and obtaining zero waste at 50% of our production facilities. A copy of the report is included in the Investor Relations section of our corporate website, and we expect to continue to publish in an annual report, going forward.

正如報告所述，我們在 2022 年的舉措方面取得了重大進展，並實現了新的里程碑。我們的 2030 年長期目標包括將用水效率提高 20% 以及在 50% 的生產設施中實現零廢物。該報告的副本包含在我們公司網站的投資者關係部分，我們預計今後將繼續在年度報告中發布。

Given the strong performance in the first half of the year, we feel confident in increasing our annual revenue guidance to be between $2.32 billion and $2.36 billion, with normalized revenue growth in a range of 7% to 9%. We expect full year 2023 adjusted EBITDA to be between $460 million and $480 million and an increase in annual adjusted free cash flow to $150 million.

鑑於上半年的強勁表現，我們有信心將年度收入指引提高到 23.2 億美元至 23.6 億美元之間，正常化收入增長在 7% 至 9% 範圍內。我們預計 2023 年全年調整後 EBITDA 將在 4.6 億至 4.8 億美元之間，年度調整後自由現金流將增加至 1.5 億美元。

I will now turn the call over to our CFO, David Hass, to review our second quarter financial results in greater detail.

我現在將把電話轉給我們的首席財務官 David Hass，以更詳細地審查我們第二季度的財務業績。

Thank you, Tom, and good morning, everyone. Starting with our second quarter results, consolidated revenue increased 4% to $593 million compared to $571 million. Excluding the impact of foreign exchange, normalized revenue increased 8% for the quarter. Adjusted EBITDA grew 13% to $122 million, which represents a 160 basis points of margin expansion to 20.5%. Excluding the impact of foreign exchange, adjusted EBITDA grew 12%.

謝謝你，湯姆，大家早上好。從第二季度業績開始，綜合收入從 5.71 億美元增長 4% 至 5.93 億美元。排除外匯影響，本季度正常化收入增長 8%。調整後 EBITDA 增長 13%，達到 1.22 億美元，意味著利潤率擴大 160 個基點，達到 20.5%。排除外匯影響，調整後 EBITDA 增長 12%。

Turning to our segment-level performance for the quarter. North America revenue increased 3% to $451 million compared to $437 million. Excluding the impact of foreign exchange, normalized revenue increased 7%. Adjusted EBITDA in North America increased 10% to $107 million. Adjusted EBITDA margins climbed 23.7%, a 140 basis point improvement over last year.

轉向我們本季度的部門級業績。北美收入增長 3%，從 4.37 億美元增至 4.51 億美元。剔除外匯影響，正常化收入增長7%。北美調整後 EBITDA 增長 10%，達到 1.07 億美元。調整後 EBITDA 利潤率攀升 23.7%，比去年提高 140 個基點。

In our Europe segment, revenue increased by 12% to $78 million. Excluding the impact of foreign exchange, normalized revenue increased 15%. Adjusted EBITDA in the Europe segment increased 50% to $18 million. Excluding the impact of foreign exchange, adjusted EBITDA increased 44%. Adjusted EBITDA margins climbed [222.8%], a 580 basis point improvement over last year.

在我們的歐洲部門，收入增長了 12%，達到 7800 萬美元。剔除外匯影響，正常化收入增長15%。歐洲業務調整後 EBITDA 增長 50%，達到 1800 萬美元。剔除外匯影響，調整後 EBITDA 增長 44%。調整後 EBITDA 利潤率攀升 [222.8%]，比去年提高 580 個基點。

The results of our European operations continue to show strong improvements and have returned to pre-pandemic levels. Our focus on improving route density, increasing our scale, improving our route operations and the benefits of Europeans returning to the office are taking hold. Our team in Europe is executing their strategic plan, and we expect to see further improvements as we move through the balance of the year.

我們歐洲業務的業績繼續顯示出強勁的改善，並已恢復到大流行前的水平。我們對提高航線密度、擴大規模、改善航線運營以及歐洲人返回辦公室的好處的關注正在逐漸顯現。我們在歐洲的團隊正在執行他們的戰略計劃，我們預計在今年餘下的時間裡會看到進一步的改進。

Turning to our Q3 and full year outlook. We expect consolidated revenue from continuing operations for the third quarter to be between $612 million and $632 million and that our third quarter adjusted EBITDA will be in the range of $129 million to $139 million.

轉向我們的第三季度和全年展望。我們預計第三季度持續經營業務的綜合收入將在 6.12 億美元至 6.32 億美元之間，第三季度調整後的 EBITDA 將在 1.29 億美元至 1.39 億美元之間。

As Tom mentioned, for the full year 2023, we are confident in increasing our guidance, with revenue projected to be between $2.32 billion and $2.36 billion, with normalized revenue growth in the range of 7% to 9%. We now expect full year 2023 adjusted EBITDA to be between $460 million and $480 million, with an annual adjusted free cash flow of $150 million, an increase of $10 million compared to previous guidance.

正如 Tom 提到的，對於 2023 年全年，我們有信心提高指導，收入預計在 23.2 億美元至 23.6 億美元之間，正常化收入增長在 7% 至 9% 範圍內。我們目前預計 2023 年全年調整後 EBITDA 將在 4.6 億至 4.8 億美元之間，年度調整後自由現金流為 1.5 億美元，比之前的指導增加 1,000 萬美元。

Our increased adjusted EBITDA guidance is driven by the year-to-date performance that has come in ahead of our initial expectations, as well as year-to-date tariff refunds of approximately $2.2 million that I will discuss in a moment.

我們上調調整後 EBITDA 指引的原因是年初至今的業績超出了我們最初的預期，以及年初至今約 220 萬美元的關稅退款（我稍後將對此進行討論）。

The balance of our increased annual guidance is driven by our confidence level for improved performance in the back half of the year as well as the expected contribution of our recent Diamond Spring tuck-in acquisition. Our SG&A expenses in the second quarter reflect the impact of higher commission payments to our delivery drivers as a result of increased pricing. The higher gross margins provided a net offset to the increased commission expense, providing higher adjusted EBITDA.

我們增加的年度指導的平衡是由我們對下半年業績改善的信心水平以及我們最近收購 Diamond Spring 的預期貢獻推動的。我們第二季度的銷售、管理及行政費用反映了由於價格上漲而向送貨司機支付的佣金增加的影響。較高的毛利率抵消了增加的佣金費用，從而提供了更高的調整後 EBITDA。

Our reported SG&A expenses in the second quarter also include several onetime charges, including those related to the proxy challenge during the second quarter. Without these onetime charges, our SG&A as a percent of sales would have been 52.6% compared to the reported 53.5%. Year-to-date SG&A would have been 53.5% compared to the reported 54.5%. We expect our Q3 SG&A to decline as a percent of sales as we will benefit from the leverage and scale of higher volume due to seasonality.

我們報告的第二季度銷售、管理及行政費用還包括多項一次性費用，包括與第二季度代理挑戰相關的費用。如果沒有這些一次性費用，我們的 SG&A 佔銷售額的百分比將為 52.6%，而報告的比例為 53.5%。年初至今的銷售、管理及行政費用 (SG&A) 為 53.5%，而報告的數據為 54.5%。我們預計第三季度的銷售、管理費用佔銷售額的百分比將下降，因為我們將受益於季節性帶來的更高銷量的槓桿和規模。

We are maintaining our 2023 CapEx guidance of approximately $200 million, which is approximately 7% of revenue, plus an incremental $30 million. As a reminder, in 2023 and 2024, we will invest an incremental $30 million per year as opposed to the $50 million noted in our November 2021 Investor Day. This decision is based upon our confidence and run rate performance that enables us to reduce the investment dollars and deliver the 2023 and 2024 outlook.

我們維持 2023 年資本支出指導值約 2 億美元，約佔收入的 7%，另加 3000 萬美元增量。提醒一下，在 2023 年和 2024 年，我們將每年增加投資 3000 萬美元，而不是 2021 年 11 月投資者日中提到的 5000 萬美元。這一決定基於我們的信心和運行率表現，這使我們能夠減少投資並實現 2023 年和 2024 年的展望。

Key initiatives to be funded from our CapEx plan include driving digital growth, leading dispenser innovation, building a more environmentally friendly fleet, as well as investing in our private fleet, which will allow for a more efficient distribution of our products, installing more efficient water production lines, which will reduce water usage and increase productivity; and driving growth in Refill and Filtration with refreshed signage and branding of our existing units, the development of our on-the-go units and new Filtration innovations. We expect to return to our normalized total CapEx spend of approximately 7% of revenue in 2025.

我們的資本支出計劃資助的關鍵舉措包括推動數字增長、領先飲水機創新、建設更環保的車隊以及投資我們的私人車隊，這將使我們的產品更有效地分銷、安裝更高效的水生產線，這將減少用水量並提高生產率；通過更新現有設備的標牌和品牌、開發移動設備以及新的過濾創新來推動再填充和過濾業務的增長。我們預計到 2025 年，我們的正常資本支出總額將恢復到收入的約 7%。

For full year 2023, we continue to expect interest expense of approximately $70 million to $75 million. The majority of our interest expense is tied to our 2 senior note debt facilities with very low interest rates of approximately 4%, with maturity dates of 2028 and 2029. The balance of our interest expense is tied to our cash flow revolver loan that we are actively managing lower with excess cash while rates remain at approximately 7%.

對於 2023 年全年，我們仍然預計利息支出約為 7000 萬至 7500 萬美元。我們的大部分利息費用與我們的2 項優先票據債務融資掛鉤，利率極低，約為4%，到期日為2028 年和2029 年。我們的利息費用餘額​​與我們的現金流循環貸款掛鉤。在利率保持在 7% 左右的情況下，積極利用過剩現金進行較低的管理。

With the increase in our adjusted EBITDA guidance, we are moving our estimate for cash taxes toward the high end of our previously communicated range and currently expect approximately $25 million of cash taxes. This anticipates utilization of U.S. net operating losses, or NOLs. While we are limited in the amount of NOLs we can utilize each year, we still have significant U.S. NOLs available in the balance of 2023 and 2024.

隨著我們調整後的 EBITDA 指引的增加，我們將對現金稅的估計移至之前溝通的範圍的高端，目前預計現金稅約為 2500 萬美元。這預計將利用美國淨運營虧損（NOL）。雖然我們每年可以使用的 NOL 數量有限，但在 2023 年和 2024 年的剩餘時間裡，我們仍然擁有大量的美國 NOL。

As a reminder, our Water Dispenser category was previously under a 25% import tariff burden by U.S. Customs. The tariff impacted both the Water Dispensers that we rent as CapEx as well as the Water Dispensers we sell, with the increased costs reflected as cost of goods sold. Our dispensers were reclassified in November of 2022, with recoveries of tariff funds available through a refund process. We have recorded the refunds in the same manner of the original transactions.

提醒一下，我們的飲水機類別此前曾被美國海關徵收 25% 的進口關稅。關稅影響了我們作為資本支出租賃的飲水機以及我們銷售的飲水機，增加的成本反映為銷售商品成本。我們的加油機於 2022 年 11 月進行了重新分類，可通過退款流程收回關稅資金。我們已按照與原始交易相同的方式記錄退款。

Through Q2, we have received approximately $4 million of tariff refunds. Approximately $2.2 million of the $4 million is reflected in year-to-date adjusted EBITDA related to the Water Dispensers sold to retail, and the remaining $1.8 million is related to the Water Dispensers that we rent as CapEx. The cumulative $4 million is reflected in our updated adjusted free cash flow guidance that we'll discuss in a moment.

截至第二季度，我們已收到約 400 萬美元的關稅退款。 400 萬美元中的約 220 萬美元反映在與零售銷售飲水機相關的年初至今調整後 EBITDA 中，其餘 180 萬美元與我們作為資本支出出租的飲水機相關。累計 400 萬美元反映在我們稍後將討論的更新後的調整後自由現金流指引中。

While the refund progress is promising, we have not reflected any additional refund amounts in our updated guidance due to the uncertain timing of the refund process.

儘管退款進展良好，但由於退款流程的時間不確定，我們尚未在更新的指南中反映任何額外的退款金額。

One key learning from the investor perception study that we conducted was to be more transparent and clearly articulate expected outcomes, especially on the topic of adjusted free cash flow. As we look at our performance in the front half of the year, we are confident in our ability to raise our annual adjusted free cash flow guidance to $150 million, an increase of $10 million. This is driven by our increased adjusted EBITDA outlook, the tariff refunds received to date, slightly offset by the increase in our estimated cash taxes.

我們從投資者認知研究中學到的一個重要教訓是更加透明和清晰地闡明預期結果，特別是在調整後的自由現金流方面。回顧今年上半年的業績，我們有信心將年度調整後自由現金流指引提高至 1.5 億美元，增加 1000 萬美元。這是由我們調整後的 EBITDA 前景增加、迄今為止收到的關稅退款推動的，但我們估計的現金稅的增加略有抵消。

While the estimated property sales will generate additional taxes not contemplated in our $25 million cash tax estimates, these would be onetime in nature and added back to our reported adjusted free cash flow metric. We wanted to take time this quarter to clarify our adjusted free cash flow outlook and the changes since our last communication guidance on this metric.

雖然預計的房地產銷售將產生我們 2500 萬美元現金稅估算中未考慮的額外稅收，但這些稅收本質上是一次性的，並會添加回我們報告的調整後自由現金流指標中。我們希望在本季度花些時間來澄清我們調整後的自由現金流前景以及自上次關於該指標的溝通指導以來的變化。

We continue to make progress on the sale of properties. The timing of our larger transactions is still estimated to occur in the second half of 2023 and have been the primary mechanism for funding our opportunistic share repurchase program, as disclosed last year. As we did not complete any of these property sales during the quarter, we repurchased approximately $2 million worth of shares. To date, we have repurchased approximately $43 million under the existing program.

我們在房產銷售方面繼續取得進展。正如去年所披露的，我們較大規模交易的時間預計仍將在 2023 年下半年進行，並且一直是為我們機會性股票回購計劃提供資金的主要機制。由於我們在本季度沒有完成任何此類房地產銷售，因此我們回購了價值約 200 萬美元的股票。迄今為止，我們已根據現有計劃回購了約 4300 萬美元。

We remain committed to achieving our targeted net leverage ratio of below 3x by the end of 2023 and a targeted net leverage ratio of less than 2.5x by the end of '24. This will occur through both our adjusted EBITDA performance as well as utilizing this year's property sales to reduce the borrowings on our cash flow revolver while opportunistically repurchasing shares.

我們仍然致力於到 2023 年底實現淨槓桿率低於 3 倍的目標，到 24 年底實現淨槓桿率低於 2.5 倍的目標。這將通過我們調整後的 EBITDA 業績以及利用今年的房地產銷售來減少我們的現金流循環借款，同時機會性地回購股票來實現。

Our year-to-date tuck-in M&A activity, along with the potential acquisitions for the back half of the year, positions us to achieve our 2023 tuck-in purchase guidance of $20 million to $30 million. Acquisitions remain a complementary source of customer acquisition. Whether we acquire organically or through the acquisition of the customer base of tuck-ins, both are means of scaling our customer base.

我們今年迄今的補充併購活動，以及今年下半年的潛在收購，使我們能夠實現 2023 年 2000 萬至 3000 萬美元的補充購買指導。收購仍然是客戶獲取的補充來源。無論我們是有機收購還是通過收購tuck-ins的客戶群，兩者都是擴大客戶群的手段。

The cost per customer acquired through acquisitions is typically similar to other means of acquisition. However, the difference lies in the stickiness of the customers. Customers acquired through tuck-in acquisitions are already users of the service and understand the benefits and the annual cost of Water Direct service. We remain committed to Water Direct tuck-ins as a way to accelerate density in our operating regions and provide operating scale.

通過收購獲得的每個客戶的成本通常與其他收購方式相似。但區別在於客戶的粘性。通過 Tuck-in 收購獲得的客戶已經是該服務的用戶，並且了解 Water Direct 服務的優勢和年度成本。我們仍然致力於直接供水，以此作為加快運營區域密度並擴大運營規模的一種方式。

Our cash flow and balance sheet enable us to simultaneously return value to shareholders through regular quarterly dividends and opportunistic share repurchases while continuing to invest in internal and external opportunities that will further strengthen our operations and drive long-term growth. The Board of Directors and the management team believe that repurchasing stock is an important part of our capital allocation strategy. Yesterday, our Board of Directors authorized a new $50 million share repurchase program, which replaces the previously authorized share repurchase program that expires on August 14, 2023.

我們的現金流和資產負債表使我們能夠同時通過定期季度股息和機會性股票回購向股東回報價值，同時繼續投資於內部和外部機會，以進一步加強我們的運營並推動長期增長。董事會和管理團隊認為回購股票是我們資本配置策略的重要組成部分。昨天，我們的董事會批准了一項新的 5000 萬美元股票回購計劃，該計劃取代了之前授權的將於 2023 年 8 月 14 日到期的股票回購計劃。

Finally, yesterday, our Board of Directors authorized a quarterly dividend of $0.08 per common share, which continues our path to the multiyear dividend step-up, with an increase in our quarterly dividend per share of $0.01 in 2022, 2023 and another in 2024.

最後，昨天，我們的董事會批准了每股普通股 0.08 美元的季度股息，這繼續了我們多年股息增加的道路，2022 年、2023 年和 2024 年每股季度股息將增加 0.01 美元。

I will now turn the call back to Tom.

我現在將把電話轉回給湯姆。

Thanks, David. Our performance reinforces our confidence in our ability to deliver sustained growth, supported by strong revenue growth in our Water Direct, Exchange and Refill businesses, continued execution of our tuck-in M&A strategy, the improved performance of our European operations and adjusted EBITDA margin expansion. We're pleased to report that our commitment to improving the customer experience is paying off. We have seen a significant increase in service levels, the digital experience and customer satisfaction.

謝謝，大衛。我們的業績增強了我們對實現持續增長能力的信心，這得益於我們的直接水、交換和補充業務收入的強勁增長、我們的補充併購戰略的持續執行、我們歐洲業務業績的改善以及調整後的EBITDA 利潤率擴張。我們很高興地報告，我們對改善客戶體驗的承諾正在得到回報。我們看到服務水平、數字體驗和客戶滿意度顯著提高。

We are excited about the opportunities that lie ahead. We are making solid progress and have the right plan and the right team in place to succeed. We are one of the only pure-play water platforms, and we benefit from a large and growing revenue base. Our high single-digit long-term growth targets are driven by the connectivity of Water Dispensers to our water solutions as well as consumer tailwinds such as the focus on health and wellness and concerns about aging global water infrastructure.

我們對未來的機遇感到興奮。我們正在取得紮實的進展，並擁有正確的計劃和合適的團隊來取得成功。我們是唯一的純水平台之一，我們受益於龐大且不斷增長的收入基礎。我們的高單位數長期增長目標是由飲水機與我們的水解決方案的連接以及消費者的推動因素（例如對健康和保健的關注以及對老化的全球水基礎設施的擔憂）推動的。

We have a healthy balance sheet, a compelling long-term growth outlook and an attractive margin profile. We remain confident that we will generate adjusted EBITDA approaching $530 million, with margins of approximately 21% and an adjusted ROIC of 12% by the end of 2024. Once again, I'd like to thank the Primo Water associates across the business for their tireless efforts to serve our customers.

我們擁有健康的資產負債表、引人注目的長期增長前景和有吸引力的利潤率。我們仍然有信心，到 2024 年底，我們將產生接近 5.3 億美元的調整後 EBITDA，利潤率約為 21%，調整後的 ROIC 為 12%。我要再次感謝整個業務的 Primo Water 員工不懈努力，服務廣大客戶。

With that, I will turn the call back over to Jon for Q&A.

這樣，我會將電話轉回喬恩進行問答。

(Operator Instructions) Operator, please open the line for questions.

（接線員指示）接線員，請接通電話詢問。

(Operator Instructions) Your first question comes from Dan Moore from CJS Securities.

（操作員指令）您的第一個問題來自 CJS 證券的 Dan Moore。

It's Pete Lukas for Dan. You did give us a lot of color on free cash flow and do appreciate that. Just can you give us maybe a little more on the primary drivers that give you confidence in generating $350 million of implied cash flow from operations? And how sustainable do you think that is, going into '24?

丹是皮特·盧卡斯。您確實給我們提供了很多有關自由現金流的信息，並且對此表示讚賞。您能給我們更多關於讓您有信心從運營中產生 3.5 億美元隱含現金流的主要驅動因素嗎？進入 24 世紀，您認為這種情況的可持續性如何？

Pete, this is Tom. I'll let David handle that. David?

皮特，這是湯姆。我會讓大衛來處理這件事。大衛？

Thanks, Pete. We understand the importance of predictable free cash flow. We wanted to thank the participants of the [Revel] perception study. The study confirmed what we anticipated, which is being a little bit more transparent and support around the critical metric of free cash flow and improving our messaging around it. This quarter, we wanted to provide a bit more clarity there.

謝謝，皮特。我們了解可預測的自由現金流的重要性。我們要感謝 [Revel] 認知研究的參與者。該研究證實了我們的預期，即圍繞自由現金流的關鍵指標更加透明和支持，並改善我們圍繞它的信息傳遞。本季度，我們希望提供更清晰的信息。

The $150 million is a noticeable step-up from last year, where we ended the year at $85 million in adjusted free cash flow. It's also a $10 million increase from our prior guidance on the prior quarter. The primary reason there is the increased earnings power in the outlook that we've given, paired with some of the tariff refunds to date.

與去年相比，這 1.5 億美元顯著增加，去年年底我們的調整後自由現金流為 8500 萬美元。這也比我們之前對上一季度的指導增加了 1000 萬美元。主要原因是我們給出的前景中盈利能力的增加，以及迄今為止的一些關稅退款。

And then these gains are slightly offset with some estimated cash taxes for that increased operating income. And we will continue to provide updates related to free cash flow pacing, including how we think about long-term potential in coming quarters.

然後，這些收益會被營業收入增加的一些估計現金稅略微抵消。我們將繼續提供與自由現金流節奏相關的更新，包括我們如何看待未來幾個季度的長期潛力。

Extremely helpful. And then you reiterated your '24 goal of adjusted EBITDA approaching $530 million next year, which implies about a 13% growth from the midpoint. Can you talk about what gives you the confidence in driving stronger operating leverage next year?

非常有幫助。然後您重申了 24 年調整後 EBITDA 明年接近 5.3 億美元的目標，這意味著較中點增長約 13%。您能否談談是什麼讓您有信心在明年推動更強勁的運營槓桿？

Yes. If you just think about the performance this year and the building momentum coming out of 2022 that we see continued high single-digit revenue growth, which is obviously a key driver, we're quite pleased with the EBITDA margin of 20.5% in the quarter, which I think is an all-time high for us. And you may recall, we achieved 20% adjusted EBITDA margins in both Q3 and Q4. So that 160 basis points clears the hurdle of what we've said about the exit of the retail water business in America and got true expansion. So that -- as you think about that track record now builds as we drive revenue, and frankly, we continue to focus on our operations.

是的。如果你只考慮今年的業績以及 2022 年的發展勢頭，我們會看到持續的高單位數收入增長，這顯然是一個關鍵驅動因素，我們對本季度 20.5% 的 EBITDA 利潤率感到非常滿意，我認為這對我們來說是歷史最高水平。您可能還記得，我們在第三季度和第四季度均實現了 20% 的調整後 EBITDA 利潤率。因此，160 個基點清除了我們所說的美國零售水業務退出的障礙，並實現了真正的擴張。因此，當你想到隨著我們增加收入而建立的業績記錄時，坦率地說，我們將繼續專注於我們的運營。

If you look at Page 10 in the supplemental deck, it's an example of one being responsive, frankly, to our early learnings from the perception study about providing more detail. But this is where we see the benefit of a number of our investments and our focus on improving operations. And routes matter. And our performance on the route side has been pretty solid over the recent quarters. So all of that helps build our confidence -- further builds our confidence about our ability to deliver 2024.

如果您查看補充資料中的第 10 頁，坦率地說，這是一個對我們從感知研究中獲得的關於提供更多細節的早期知識做出回應的示例。但這就是我們看到大量投資的好處以及我們對改善運營的關注的地方。路線很重要。最近幾個季度我們在航線方面的表現相當穩健。因此，所有這些都有助於增強我們的信心——進一步增強我們對實現 2024 年目標的能力的信心。

Your next question comes from Nik Modi from RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場的尼克·莫迪。

I know you guys don't provide this breakdown, but I was hoping you can provide some clarity around kind of price versus [falling] contribution. And then just the broader question, I just would love to hear about the Costco ramp and the implications of (inaudible) having, if you can provide any context around that.

我知道你們沒有提供此細目，但我希望你們能提供一些關於價格與[下降]貢獻的澄清。然後是更廣泛的問題，我只是想听聽 Costco 的坡道以及（聽不清）擁有的含義，如果您能提供任何相關背景信息。

Yes. Thanks, Nik. Before I speak specifically to Costco, clearly, we're pleased with our 8% revenue growth in the quarter and the consistent revenue growth that we've produced over recent quarters. So that is certainly a trend. And to the earlier question is all about our confidence in our ability to drive top line revenue growth as we go forward into, frankly, the end of this year and into 2024.

是的。謝謝，尼克。在我專門與 Costco 交談之前，顯然，我們對本季度 8% 的收入增長以及最近幾個季度的持續收入增長感到滿意。所以這肯定是一種趨勢。坦率地說，對於前面的問題，我們對在今年年底和 2024 年推動營收增長的能力充滿信心。

You may recall in prior quarters, when we talked about revenue growth, we articulated that we expected that pricing would be the key driver, key component of the revenue growth in the first half of the year. It turned out to be exactly the case. We also shared that as we shifted to the back half of the year that we would expect to get more benefit as we built the relationship and the number of roadshow events that we execute at Costco. That still remains our expectation.

大家可能還記得，在前幾個季度，當我們談到收入增長時，我們明確表示，我們預計定價將是上半年收入增長的關鍵驅動力、關鍵組成部分。事實證明確實如此。我們還分享了，隨著我們進入下半年，隨著我們建立關係以及我們在 Costco 執行的路演活動數量，我們預計會獲得更多收益。這仍然是我們的期望。

We will continue to invest in growth, that will include sales, that will include marketing initiatives, that will include digital investment, and it's certainly going to include the customer experience. We'll execute our M&A tuck-in plans, as evidenced by our closing on the Diamond Springs business in Richmond, Virginia. We will achieve the debt pay-down to under 3 by the end of 2023. And then we remain focused on share repurchase, and dividend policy will remain in place.

我們將繼續投資於增長，包括銷售、營銷計劃、數字投資，當然也包括客戶體驗。我們將執行我們的併購補充計劃，我們關閉弗吉尼亞州里士滿的 Diamond Springs 業務就證明了這一點。到2023年底，我們將實現債務償還至3以下。然後我們將繼續專注於股票回購，股息政策將保持不變。

Specific to Costco, the business continues to ramp, by ramp means week-over-week, the number of in-store events that we execute in Costcos across the U.S. And that business, as I've said in the past, Nik, is you don't get a big spike, you get the benefit of week-after-week building of the relationship and the number of Costco members that enjoy our service. So that number will build through Q3 and Q4. And we're confident, currently, in the pacing and pleased with the performance, frankly, of the teammates across the business that are executing.

具體到 Costco 來說，業務持續增長，增長意味著我們在美國各地 Costco 執行的店內活動數量逐週增加。而正如我過去所說的，Nik，這項業務是你不會得到一個大的高峰，你會受益於一周又一周建立的關係以及享受我們服務的Costco 會員數量。因此，這個數字將持續到第三季度和第四季度。坦率地說，我們目前對整個業務中正在執行的團隊成員的節奏充滿信心，並對他們的表現感到滿意。

Your next question comes from Andrea Teixeira from JPMorgan.

您的下一個問題來自摩根大通的 Andrea Teixeira。

So I have several questions, just to get you to the top question and clarification, and I would say, in the spirit of improved disclosure, I appreciate that. Number one, how was the volume and price breakdown in particular, Water Direct and the price carryover? I'm assuming the price carryover has moderated at least from now. So looking at your guidance, how much are you embedding in there?

因此，我有幾個問題，只是為了讓您了解最重要的問題並進行澄清，我想說，本著改進披露的精神，我對此表示讚賞。第一，具體的數量和價格細分、水直接和價格結轉情況如何？我假設價格結轉至少從現在開始已經放緩。那麼看看你的指導，你在其中嵌入了多少？

And of course, I saw what you said that is driven -- the 7% was driven by -- the 7% sales growth was driven by pricing, but I was wondering if on an organic basis, volumes were negative or just flat. And if you can -- I understand the retention was 85%, but just if you can give us an idea of your retention in the Americas and how the elasticity has been evolving [with you] as well.

當然，我看到你所說的驅動因素——7% 的增長是由——7% 的銷售增長是由定價驅動的，但我想知道在有機的基礎上，銷量是否為負或持平。如果可以的話——我知道保留率為 85%，但前提是您能讓我們了解您在美洲的保留率以及[與您一起] 的彈性如何演變。

And then my clarification question was on the gross margin. I think David, you called out the $4 million benefit on -- and I understand it goes -- it flows through gross margin for the tariffs, and you have a record-high gross margin, which is obviously very welcome. So I'm thinking more how should we all think about where gross margins will land in the future?

然後我要澄清的問題是毛利率。我認為大衛，你提到了 400 萬美元的好處 - 我理解它是通過關稅的毛利率流動的，並且你擁有創紀錄的高毛利率，這顯然是非常受歡迎的。所以我更多地思考我們應該如何思考未來的毛利率會達到什麼水平？

Andrea. That was a good question. We're going to try and pick it apart here as best as we can. We've got a couple of arms and legs in there. David, do you want to take the gross margin question?

安德里亞.這是一個好問題。我們將盡力在這裡將其拆開。我們那裡有幾條胳膊和腿。大衛，你想回答毛利率問題嗎？

Yes. Let me address the tariff impact in gross margin first. So [$2.2 million] year-to-date would be in as the tariff money is coming back from the government, those tariff monies received that are affiliated or attributed to dispensers sold to retailers. How that flows through the income statement is a reduction in cost of goods in that particular quarter. So if I receive a dollar, it basically reduces cost of goods sold on that segment, and that dollar then flows through as an improved -- as an improvement in EBITDA.

是的。首先讓我談談關稅對毛利率的影響。因此，今年迄今為止，[220 萬美元]將計入關稅資金從政府收回的情況，這些關稅資金與出售給零售商的分配器有關或歸屬於這些關稅資金。其在損益表中的流動方式是該特定季度商品成本的減少。因此，如果我收到一美元，它基本上會降低該細分市場銷售的商品成本，然後該美元就會作為 EBITDA 的改進而流入。

The balance or the $1.8 million does not flow through the P&L in that way because that portion of the tariff receipts is affiliated with the increased CapEx or the increased cost of those coolers when we were importing them to rent. And so that balance of money flows through other income and would not have been part of the expansion in gross profit.

餘額或 180 萬美元不會以這種方式流經損益表，因為這部分關稅收入與我們進口冷卻器出租時增加的資本支出或增加的成本有關。因此，貨幣餘額通過其他收入流動，並且不會成為毛利潤擴張的一部分。

So going forward, how we look at that is there are future tariff monies available, but it's always the irregular, if you will, cycle of how we receive them from the government. It's been in fits and starts this year. That's why we have not contemplated the additional monies we're owed yet in our guide.

因此，展望未來，我們的看法是，未來有可用的關稅資金，但如果你願意的話，我們從政府收到這些資金的周期始終是不規則的。今年以來，情況一直斷斷續續。這就是為什麼我們在指南中還沒有考慮我們所欠的額外款項。

That's -- all that said, the gross margin expansion is the largest contributor to the normalized EBITDA expansion of 160 points on a comparative basis to last year.

話雖如此，與去年相比，毛利率擴張是正常化 EBITDA 擴張 160 點的最大貢獻者。

And would you think that is sustainable then, right? So I just did a simple math that on -- excluding -- and obviously, those -- that $2 million is negligible. You still have the first half north of [60]. So the first half was like margin -- gross margin of close to [61]. How should the investors think about their margin, going forward?

那麼您認為這是可持續的嗎？所以我只是做了一個簡單的數學計算——排除——顯然，那些——200 萬美元可以忽略不計。你仍然有[60]以北的上半部分。所以上半年就像利潤率——毛利率接近[61]。投資者應該如何考慮未來的利潤率？

Yes. We would still have obviously some shoulder seasons in Q1 and Q4 and peaks in Q2 and Q3, based on just throughput that goes through the system affiliated with higher consumption from customers. But I think what you're seeing overall is a step-up as we've now lapped the single-use plastics drag on the gross margin. You're seeing kind of what would a typical company look like on a go-forward basis. So these are -- again, you can exclude the $2 million, which is relatively negligible. This should give you a good perspective of how the flighting could look in a future year when there's not a little bit of tariff noise.

是的。根據與客戶較高消費相關的系統吞吐量，我們在第一季度和第四季度顯然仍會出現一些平季，在第二季度和第三季度出現峰值。但我認為，總體而言，您看到的是一個進步，因為我們現在已經克服了一次性塑料對毛利率的拖累。你會看到一個典型的公司在未來的基礎上會是什麼樣子。所以這些——同樣，你可以排除 200 萬美元，這是相對可以忽略不計的。這應該可以讓您更好地了解未來一年在沒有關稅噪音的情況下航班的情況。

That's super helpful. And Tom, I guess on the -- a bit on the price against volume algorithm, and how we should be thinking on an organic basis for the business? And how elasticity has been evolving?

這非常有幫助。湯姆，我想是關於價格與數量的算法，以及我們應該如何在業務的有機基礎上進行思考？彈性是如何演變的？

Yes. I think it's important, we shared earlier our appreciation for the input from the shareholders and the [Revel] per shareholders and sell side, right, in terms of the perception study. We're, frankly, digesting all of that information because it is -- I guess, fresh would be a good word to use it. It's -- we're viewing it in real-time.

是的。我認為這很重要，我們之前就感知研究表達了對股東以及每個股東和賣方的[Revel]意見的讚賞，對吧。坦率地說，我們正在消化所有這些信息，因為我想，“新鮮”這個詞用起來比較合適。我們正在實時查看它。

And what we've chosen to do is to provide lots of clarity around free cash flow because when we -- as we inbound that data, it rose to the top of the list of what shareholders and others have said, "This is really important for us that you provide more clarity and disclosure and transparency around free cash flow." So hence, the reason we've spent a fair bit of time in our materials and the script trying to provide just that.

我們選擇做的是提供有關自由現金流的大量清晰度，因為當我們接收這些數據時，它上升到了股東和其他人所說的列表的首位，“這非常重要”對我們來說，你們為自由現金流提供了更多的清晰度、披露和透明度。”因此，這就是我們在材料和腳本上花費大量時間試圖提供這一點的原因。

The second part that we wanted to get to was that Page 10, I referenced earlier, was around the route side of this business. And one of the ways, how do you drive margins, how do you get leverage, and that's to demystify this. And we have, frankly, in the past, provided pieces of this information and consistently and wanted to demystify that and provide that.

我們想要了解的第二部分是第 10 頁，我之前提到過，是圍繞該業務的路線部分。其中一種方法是，如何提高利潤率，如何獲得槓桿作用，那就是揭開這一點的神秘面紗。坦率地說，我們過去已經提供過這些信息的片段，並且始終如一地希望揭開並提供這些信息。

That being said, we're pleased with high single-digit revenue growth. I've said in the past a couple of things. I've said that our revenue will come from price and volume principally, installed customer base, new customers. I've also said that will [generally]doesn't come the same way on a year-over-year basis.

話雖這麼說，我們對單位數的高收入增長感到高興。我過去已經說過幾件事。我說過我們的收入主要來自價格和銷量、現有客戶群、新客戶。我還說過，每年的情況[通常]不會以相同的方式出現。

For this year, I've said in the first half of the year that the bulk of that top line revenue growth, specifically in Water Direct, was the reference point, would come from pricing, and that's what happened. So we're, frankly, quite pleased because it delivered the numbers that we committed to and played out the way that we thought it would play out.

對於今年，我在上半年說過，大部分收入增長，特別是在水直接收入方面，是參考點，將來自定價，這就是所發生的情況。坦率地說，我們非常高興，因為它實現了我們承諾的數字，並按照我們預期的方式發揮了作用。

As we shift to the second half of the year, and we haven't disclosed the pieces of a little bit of this, a little bit of that, right, ever. But what we have said is that we would expect that there would be more contribution as a result of the Costco program than pricing. We still believe that to be true. We are still fully committed to that high single-digit growth and obviously, the $2.32 billion to $2.36 billion in revenue for the full year.

當我們進入今年下半年時，我們還沒有透露過這一點、那一點，對吧，從來沒有。但我們所說的是，我們預計 Costco 計劃帶來的貢獻將比定價更多。我們仍然相信這是真的。我們仍然完全致力於實現高個位數增長，顯然，全年收入將達到 23.2 億美元至 23.6 億美元。

And Tom, if I can just go through that what you just mentioned, and you did disclose this quarter and you start disclosing on a quarterly basis, the customer count, I believe, from fourth quarter. And you did add 40,000 customers. I mean, that came from Water Direct, if I'm not mistaken. So those would be the acquisition that you just announced -- not announced to us, I guess, I mean, you're probably working through the quarter. Or -- how much of that -- it would be helpful just to know the 40,000 new customers, were they basically mostly through the acquisition? Or were they organic?

湯姆，如果我可以回顧一下您剛才提到的內容，您確實在本季度進行了披露，並且開始按季度進行披露，我相信，客戶數量是從第四季度開始的。您確實增加了 40,000 個客戶。我的意思是，如果我沒記錯的話，那是來自 Water Direct 的。因此，這些將是您剛剛宣布的收購 - 沒有向我們宣布，我想，我的意思是，您可能正在整個季度工作。或者 - 其中有多少 - 只要了解這 40,000 個新客戶就會有幫助，他們基本上是通過收購獲得的嗎？或者它們是有機的？

A portion of that would certainly be through acquisition, right? So that's the ending base, if you will, related to the Diamond Spring acquisition in Virginia, right? So that would certainly be part of it. You also have benefit of ongoing retention, right, as an example, that growth comes a lot of different ways.

其中一部分肯定是通過收購來實現的，對吧？如果你願意的話，這就是與弗吉尼亞州 Diamond Spring 收購相關的最終基地，對吧？所以這肯定是其中的一部分。您還可以獲得持續保留的好處，例如，增長有很多不同的方式。

It comes from -- right? I can get customers through things like Costco, sales initiatives. I get customers through marketing and digital. I shared in the script how pleased we are that we've hired a new Vice President of Marketing, and I look forward to his contributions. He doesn't have (inaudible) yet, right, so he's in the journey of learning.

它來自——對吧？我可以通過 Costco、銷售活動等方式吸引客戶。我通過營銷和數字技術獲得客戶。我在劇本中分享了我們對聘請一位新的營銷副總裁感到多麼高興，我期待他的貢獻。他還沒有（聽不清），對吧，所以他正在學習的過程中。

We get customers through acquisitions. And that M&A has long been a component part of how we add customers to our base over the long term. And it will be -- continue to be that. And then certainly, when I say customer experience, the outcome of our customer experience investments is we extend the useful life -- we extend the life of the customer. And that is a component of our growth story. So all legs of that would be in the [2,240,000] that we posted in the supplemental and on the web.

我們通過收購獲得客戶。長期以來，併購一直是我們長期增加客戶的一個組成部分。它將繼續如此。當然，當我說客戶體驗時，我們客戶體驗投資的結果是我們延長了使用壽命——我們延長了客戶的生命。這是我們成長故事的一部分。因此，所有內容都將包含在我們在補充材料和網絡上發布的 [2,240,000] 中。

Your next question comes from John Zamparo from CIBC.

您的下一個問題來自 CIBC 的 John Zamparo。

I wanted to ask about pricing as well. And I would like to get your thoughts on your ability to pass through pricing in the second half, and I appreciate the comments that more of your growth is going to come from customer adds, particularly through the Costco program.

我也想問一下價格。我想了解您對下半年定價能力的看法，我很欣賞您的評論，即您的增長將更多地來自客戶增加，特別是通過 Costco 計劃。

But the reason I ask this is we've seen different consumer companies talk about a more challenging period for pricing in the second half. So do you plan to take incremental pricing? Or are you relying on the impact of prior price increases? And I wonder how that might compare to the inflation you're seeing?

但我之所以問這個問題，是因為我們看到不同的消費公司都在談論下半年的定價更具挑戰性的時期。那麼您打算採取增量定價嗎？或者您是否依賴之前價格上漲的影響？我想知道這與您所看到的通貨膨脹相比如何？

Yes. Good question. So the way to think about our pricing in the back half of the year is we take normal pricing on the installed customer base, John, normal course. We have no plans to decrease that or increase that as we sit here today. So it would be normal-course pricing. When a customer reaches their anniversary date, if you will, of their original start date, we'll put pricing through. So there's no changes to any incrementality or decrement to that. So kind of standard fair.

是的。好問題。因此，考慮下半年定價的方法是，我們對已安裝的客戶群採取正常定價，約翰，正常過程。當我們今天坐在這裡時，我們沒有計劃減少或增加這一點。所以這將是正常的定價。當客戶到達其原始開始日期的周年紀念日（如果您願意）時，我們將確定定價。因此，任何增量或減量都沒有變化。如此標準公平。

Our delivery fees -- we did take a delivery fee in Q2, and the wild card for us in inflation is really around fuel. So fuel had -- overall, oil prices had mitigated in the early part of this year. Although as I've mentioned before, diesel has been a little more resistant than other forms. And we'll deal with it, depending on where that price goes.

我們的送貨費——我們確實在第二季度收取了送貨費，而通脹對我們來說的不確定因素實際上是燃料。因此，總體而言，燃料價格在今年年初有所下降。儘管正如我之前提到的，柴油比其他形式的抵抗力要強一些。我們將根據價格走勢來處理它。

Now I think oil price in the last, I'll be wrong, I didn't look at it yesterday, but would have been the highest it's been in 9 months. We'll see how that manifests in the pump. And if required, we will act on delivery fee to adjust that, if necessary.

現在我認為最後的油價，我錯了，我昨天沒有看，但應該是 9 個月以來的最高水平。我們將看看這如何在泵中體現。如果需要，我們將根據送貨費進行調整（如有必要）。

But as we sit here today, we're highly confident in our ability to deliver that top line in our current construct. And you're right, it includes the future benefit of -- as we build this Costco base, for sure. So we're confident there. We've had the ability -- as you've seen over the last number of quarters, our ability to drive through pricing and maintain the level of customer base, the stickiness of that customer base. So we're quite pleased with that. And we don't see anything changing where our company sits compared to others.

但當我們今天坐在這裡時，我們對在當前結構中實現這一目標的能力充滿信心。你是對的，它當然包括我們建立 Costco 基地時的未來利益。所以我們對此充滿信心。正如您在過去幾個季度中看到的那樣，我們有能力推動定價並維持客戶群水平和客戶群的粘性。所以我們對此非常滿意。與其他公司相比，我們沒有看到我們公司的地位發生任何變化。

Okay. That's helpful. I appreciate that, Tom. And my follow-up is on the use of NOLs in the future. And in the past, you've said you can use these at a pretty reasonable rate in '23 and '24, but that they'll drop off a bit in '25. I'm trying to figure out how we should think about that? And if we should think about it on a dollar basis for cash taxes or a percent because the rate on cash taxes this year on pretax income seems mid- to high teens as a percentage. And I wonder what you think a reasonable level is in 2025 and beyond?

好的。這很有幫助。我很感激，湯姆。我的後續工作是關於未來 NOL 的使用。過去，您說過您可以在 23 和 24 年以相當合理的速度使用這些，但在 25 年它們會有所下降。我想弄清楚我們應該如何思考這個問題？如果我們應該以美元為基礎來考慮現金稅或百分比，因為今年稅前收入的現金稅百分比似乎在十幾歲左右。我想知道您認為 2025 年及以後的合理水平是多少？

Yes, that's a David question.

是的，這是大衛的問題。

Thanks, John. We're certainly looking at that. As we've said before, in the U.S. side, where we have a majority of usable NOLs due to the operating profit generation, we've got 2 years this year and next in the $46 million range on the NOL value, and then that drops in 2025 by about $30 million, so about $16 million NOLs usable.

謝謝，約翰。我們當然正在關注這一點。正如我們之前所說，在美國方面，由於營業利潤的產生，我們擁有大部分可用的 NOL，今年和明年我們的 NOL 價值有 2 年在 4600 萬美元的範圍內，然後2025 年將減少約3000 萬美元，因此可用的NOL 約為1600 萬美元。

And so we're going through a lot of analysis there jurisdictionally, in combination with where profits are starting to drive now in our European business. We will be able to address that in future quarters when we're able to comfortably address sort of a longer-term outlook that would take guidance into '25. At this time, we're not commenting on it, but I wanted to provide some color on at least the NOL schedule for the U.S. business, which is still the primary profit driver of the company.

因此，我們正在對司法管轄區進行大量分析，並結合我們歐洲業務現在開始推動利潤的地方。當我們能夠輕鬆地解決將在 25 世紀提供指導的長期前景時，我們將能夠在未來幾個季度解決這個問題。目前，我們不對此發表評論，但我想至少為美國業務的 NOL 時間表提供一些信息，這仍然是該公司的主要利潤驅動力。

Your next question comes from Derek Lessard from TD Securities.

您的下一個問題來自道明證券 (TD Securities) 的德里克·萊薩德 (Derek Lessard)。

This is Sheryl standing in for Derek. Congrats on the strong results. So most of the questions are answered, but we have a couple more. Just on the residential side, would you be able to talk about the changes in residential consumer behavior, if there is any? And what you're seeing so far in Q3?

這是謝麗爾代替德里克。祝賀取得的強勁成果。大多數問題都已得到解答，但我們還有更多問題。就住宅方面來說，如果有的話，您能談談住宅消費行為的變化嗎？到目前為止，您在第三季度看到了什麼？

Sure. This is David. We continue to see strong demand in both the Water Direct business. Again, that is reflected in our future flighting of customer base attraction through Costco program. On the Water Exchange side, continued demand as -- frankly, that has been there for a decade plus and sees no sign of letup. And largely, that's why we attribute a lot of the dispenser sell-through success in that immediate connectivity factor. If I bought a dispenser, I have a trigger to do something with exchange or refill, and I do that.

當然。這是大衛。我們繼續看到水直接業務的強勁需求。這再次體現在我們未來通過 Costco 計劃吸引客戶群的過程中。在水交換方面，坦率地說，持續的需求已經存在了十多年，而且沒有任何減弱的跡象。在很大程度上，這就是為什麼我們將飲水機的銷售成功歸功於直接連接因素。如果我買了一個飲水機，我就會有一個觸發條件來進行交換或補充，我就會這樣做。

On the Refill side, something that's really playing out that ties back into some of the consumer elasticity question of a prior question, the Refill side has taken the price increase extremely well. This is the most value-conscious consumer in our portfolio. And we think a few factors are occurring there. One, it's still the most valuable way to get bulk water today. Yes, you do the work yourself, but you pay that discount to do the work, and you go through that process.

在補充裝方面，確實正在發揮作用，這與之前問題的一些消費者彈性問題有關，補充裝方面對價格上漲的反應非常好。這是我們產品組合中最具價值意識的消費者。我們認為有幾個因素正在發生。第一，它仍然是當今獲得散裝水的最有價值的方式。是的，你自己做這項工作，但你支付折扣來完成這項工作，並且你經歷了這個過程。

What we've seen really happening though is the on-shelf price of 1 gallon prefilled and 2.5-gallon prefilled as well as basically nonpromotion prices for case-pack have really gone higher due to both resin increases as well as just overall pricing decisions by those brands. So that puts Refill in a very strong sweet spot of a value-based and attractive value for that consumer. I think you can see that in this quarter sort of increased around 18% in that business.

不過，我們所看到的實際情況是，由於樹脂價格上漲以及整體定價決策，1 加侖預填充和 2.5 加侖預填充的貨架價格以及基本上非促銷的盒裝價格確實上漲了。那些品牌。因此，這使得 Refill 處於一個非常有利的位置，即對消費者來說具有基於價值和有吸引力的價值。我認為您可以看到本季度該業務增長了 18% 左右。

All right. That's great. And a follow-up is on the commercial side. I think last quarter, you mentioned that commercial sales has not yet returned to pre-pandemic level. Just curious, where it is trending now?

好的。那太棒了。後續是在商業方面。我想上個季度，您提到商業銷售尚未恢復到大流行前的水平。只是好奇，現在流行在哪裡？

Yes, it's still not back. But -- I think I referenced it, we believe it's a tailwind, and you can see it in -- frankly, the stellar performance of our business in Europe in terms of growth. And I think it was a [580] basis point improvement in adjusted EBITDA margin.

是的，還沒回來。但是 - 我想我提到過它，我們相信這是一股順風，坦率地說，你可以從我們在歐洲的業務在增長方面的出色表現中看到這一點。我認為調整後 EBITDA 利潤率提高了 [580] 個基點。

So we're seeing it come back. It's not all the way back. I don't know if it'll ever be back to where it was in 2019, but we are seeing good performance on both sides of the Atlantic in that commercial customer base. And you'll remember that the commercial customer base in Europe is a little bit more large office and the commercial customer base in North America is a little bit more of, what we call, small office. So hopefully, that helps.

所以我們看到它回來了。一切都還沒有回來。我不知道是否會回到 2019 年的水平，但我們看到大西洋兩岸的商業客戶群都表現良好。您會記得，歐洲的商業客戶群是大型辦公室，而北美的商業客戶群是我們所說的小型辦公室。希望這會有所幫助。

Your next question comes from Steve Powers from Deutsche Bank.

您的下一個問題來自德意志銀行的史蒂夫·鮑爾斯。

So I wanted to ask just maybe -- just to give a little bit more detail on to what extent -- where we are in the process of flushing the dispensers from the marketplace to carry the higher tariff costs? I think you talked about that still being a bit of a headwind to consumption in the second quarter. So to what extent? Where are we in that process? When is that inventory expected to clear from the channel? And then, as you think about it, should we expect an acceleration in sell-through once that inventory does clear? How do we think about that over the coming -- couple of quarters coming here?

所以我想問一下，也許——只是為了提供更多細節，說明我們在多大程度上將飲水機從市場上清除以承受更高的關稅成本？我認為您談到這仍然對第二季度的消費構成一定的阻力。那麼到什麼程度呢？我們在這個過程中處於什麼位置？預計該庫存何時會從渠道中清除？然後，正如您所想，一旦庫存清理完畢，我們是否應該預期銷量會加速？我們如何看待未來幾個季度的情況？

A couple of ways to think about it. So we sold through 251,000, which was, I want to say, 4% versus prior quarter -- prior year. So we're pleased with that. We are seeing inventories deplete. Obviously, aggressively managing that. We would expect today that we will get to that 1 million dispenser 12-month sell-through number. TTM, I think it's in the supplemental, would suggest [1.17 million]. So we're still on track for that, which is a positive sign. The retail pricing is lagging. So until it's all flushed through, which will be, for sure, not before the end of the year. We wouldn't expect to see deflation in the price of dispensers.

有幾種思考方法。所以我們售出了 251,000 輛，我想說，與去年同期相比，增長了 4%。所以我們對此感到滿意。我們看到庫存正在耗盡。顯然，積極管理這一點。我們預計今天我們將達到 100 萬台飲水機 12 個月的銷售量。 TTM，我認為它在補充中，會建議[117萬]。所以我們仍然在朝著這個目標前進，這是一個積極的跡象。零售價格滯後。因此，直到所有這些都被沖走之前，這肯定不會在今年年底之前完成。我們預計分配器的價格不會出現通貨緊縮。

As we move into 2024, we haven't guided anything on this, we would expect that the dispenser revenue might be lower than the prior year as the pricing that we've had to implement for tariffs is eliminated. So -- and it's going to vary by customers. So it's not a perfect -- on Tuesday, January 3, it's just not going to work that way. It's going to vary by customer and how aggressive, frankly, they are.

當我們進入 2024 年時，我們沒有對此提供任何指導，我們預計加油機收入可能會低於上一年，因為我們必須實施的關稅定價被取消。所以——它會因客戶而異。所以這並不完美——1 月 3 日星期二，它不會那樣運作。坦率地說，這會因客戶以及他們的積極性而異。

It will certainly depend, to a large degree, on promotional activity in Q4, particularly around traditional Black Friday day, days or weeks, depending on how you look at it. So we still have ways to go, but that's how we look at it today. The key indicator is that we're still getting the sell-through, and whilst we still deal with some elevated inventories, bars and as I said, by retail.

這在很大程度上肯定取決於第四季度的促銷活動，特別是傳統黑色星期五、幾天或幾週的促銷活動，具體取決於您如何看待它。所以我們還有很長的路要走，但這就是我們今天的看法。關鍵指標是我們仍在實現銷售，同時我們仍在處理一些高庫存、金條以及正如我所說的零售。

Yes. I guess is there a reason to not be more -- I mean, I get the revenue goes down as you -- as there's deflation that flows through. But I mean, volumetrically, I would -- I guess I'm thinking you should see an acceleration in sell-through, which is a good leading indicator, as you've talked about. Is that too ambitious? Or are the reasons to temper my enthusiasm, or is that a fair expectation?

是的。我想是否有理由不增加——我的意思是，我知道收入會隨著你的減少而下降——因為存在通貨緊縮。但我的意思是，從數量上來說，我想你應該會看到銷售量的加速，正如你所說，這是一個很好的領先指標。是不是太有野心了？或者是抑制我熱情的原因，還是這是一個公平的期望？

I would -- without giving guidance, I think 1 million a year is a good number. Because part of the way that you deal with this is there could be a mix shift on the dispensers that get sold. So I can sell this lower-priced dispensers or I can sell higher-priced dispensers, right? It's going to -- all of those have puts and takes on the pricing, if you will, per unit.

在沒有給出指導的情況下，我認為每年 100 萬是一個不錯的數字。因為處理這個問題的部分方法是出售的分配器可能會發生混合變化。所以我可以出售這種價格較低的飲水機，也可以出售價格較高的飲水機，對嗎？如果你願意的話，所有這些都會對每單位的定價進行看跌期權和看跌期權。

So I think I'm going to model it. I'd model 1 million because that's, I think, like a 3-year number-ish in terms of if you looked at 3 buckets of individual years, Steve.

所以我想我要對其進行建模。我會模擬 100 萬，因為我認為，如果你看一下 3 個單獨的年份，這就像 3 年的數字一樣，史蒂夫。

Yes. And I think the follow-up I'd add there is, theoretically, if you added 10% in the sell-through, you actually could do better helping connect more of the existing 1 million we already do sell to our existing solutions. So that's why theoretically, you could sell 1 million for several years on out. As long as we improve our connectivity tactics, as long as we improve our market share in our businesses, the amount that convert to our use of water has a much higher throughput than just simply trying to gun the sell-through of the dispenser, if that makes sense.

是的。我認為我要補充的後續內容是，理論上，如果您在銷售量中增加10%，您實際上可以做得更好，幫助我們將現有的100 萬個產品中的更多產品連接到我們現有的解決方案。這就是為什麼從理論上講，你可以在幾年內賣出 100 萬件。只要我們改進我們的連接策略，只要我們提高我們業務的市場份額，轉化為我們的用水量的吞吐量就比僅僅試圖提高飲水機的銷量要高得多，如果這就說得通了。

And on a dollar basis, it gets much more confusing because whether you choose to buy a pump or you choose to buy a high-end unit, the $300 that might do single-cup coffee or tea is a very different mix. They still are going to consume the annual gallons when they buy whichever one they choose to buy.

以美元為基礎，它會變得更加令人困惑，因為無論您選擇購買泵還是選擇購買高端設備，300 美元的單杯咖啡或茶是一個非常不同的組合。當他們購買任何他們選擇購買的產品時，他們仍然會消耗每年的加侖數。

(Operator Instructions) Your next question comes from Graham Price from Raymond James.

（操作員說明）您的下一個問題來自 Raymond James 的 Graham Price。

For my first one, great to see the progress on the private fleet side, and you mentioned the $3.5 million in annualized savings. Just curious, how high you think that can go? And then wondering if those routes to distribution centers are short enough to -- they're applicable to be electrified or use alternative fuels?

對於我的第一個，很高興看到私人車隊方面的進展，您提到了年化 350 萬美元的節省。只是好奇，您認為可以達到多高？然後想知道這些通往配送中心的路線是否足夠短——它們是否適用於電氣化或使用替代燃料？

Yes. Well, good morning. Two questions there. So we're analyzing all of the private -- all of the common carrier lanes today. We'll, frankly, never get to 100%. And it just has to do with we like to have trips that you can complete in 1 day, so out and back, if you will. And that's the most effective, highest return and how we do this and then avoid all the short-run spot rate.

是的。嗯，早上好。有兩個問題。因此，我們正在分析今天所有的私人——所有公共運輸通道。坦率地說，我們永遠無法達到 100%。這只是因為我們喜歡您可以在 1 天內完成的旅行，所以如果您願意的話，可以往返。這是最有效、最高回報的方法，也是我們如何做到這一點，然後避免所有短期即期匯率的方法。

So the Pac North West was the one where we put $2 million in, and I think our annualized return is $1.3 million. There are other initiatives and work that we're doing that are frankly part of our 2024 and the incremental CapEx that we've talked about, about how we benefit from those investments to get to the higher margin and to deliver the $530 million of EBITDA we've talked about for 2024 as an example.

因此，Pac North West 是我們投入 200 萬美元的項目，我認為我們的年化回報率為 130 萬美元。我們正在做的其他舉措和工作坦率地屬於我們 2024 年的一部分，以及我們已經討論過的增量資本支出，以及我們如何從這些投資中受益，以獲得更高的利潤並實現 5.3 億美元的 EBITDA我們以2024 年為例進行了討論。

Electrification, to date, on our -- the bulk of our fleet, which is beverage body, large route trucks, large-format bottles, are not an affordable solution. So the cost for that asset is -- I'll be wrong, but it's 3x what it is for a propane route truck. So I think there'll be a benefit sometime, but it's not yet there today in terms of return on invested capital.

迄今為止，對於我們的大部分車隊（包括飲料車、大型公路卡車、大型瓶子）來說，電氣化並不是一個負擔得起的解決方案。所以該資產的成本是——我錯了，但它是丙烷公路卡車成本的 3 倍。所以我認為有時會帶來好處，但就投資資本回報率而言，目前還沒有。

So we've got to be thoughtful about the cost we lay out for the asset. And the return we get balanced against our shift to propane is about being as ESG responsible as we can with the constraints of appropriate returns. Graham, so hopefully, that gets to your two questions.

因此，我們必須考慮為資產分配的成本。我們獲得的回報與轉向丙烷的平衡在於，在適當回報的限制下，盡可能對 ESG 負責。格雷厄姆，希望這能回答你的兩個問題。

It does. Yes. And then for my follow-up, I guess we saw a modest but growing dispenser sales in Europe. And I assume that's tied to the return-to-office trends that you mentioned. Just wondering about any kind of read-through from that and what to expect from Europe in particular, which looked especially strong this quarter?

確實如此。是的。然後，對於我的後續行動，我想我們在歐洲看到了飲水機銷量雖小但不斷增長。我認為這與您提到的重返辦公室趨勢有關。只是想知道對此有什麼解讀，特別是對本季度看起來特別強勁的歐洲有何期待？

Yes. I think we -- our European team has done a terrific job. We're confident that they'll deliver on their commitments and against their strategic plan, as I think we referenced. So we have a high degree of confidence in their ability to deliver on their commitments.

是的。我認為我們——我們的歐洲團隊做得非常出色。正如我認為我們提到的那樣，我們相信他們將兌現他們的承諾並遵守他們的戰略計劃。因此，我們對他們履行承諾的能力充滿信心。

There is a benefit of more return to work for sure, and we see that flow through. And we would be early stages on selling dispensers in Europe. So I wouldn't yet call it a green shoot, but it wants to be one, but we'll continue to focus on how we provide solutions for European consumers to participate in one of our services at the end of the day. So we're quite pleased with Europe and confident in our ability to continue to deliver their fair share of our '23 and '24.

更多地重返工作崗位肯定是有好處的，我們也看到了這一點。我們將處於在歐洲銷售飲水機的早期階段。因此，我還不會稱其為“綠芽”，但它希望成為一個綠芽，但我們將繼續關注如何為歐洲消費者提供最終參與我們其中一項服務的解決方案。因此，我們對歐洲非常滿意，並且對我們繼續在 23 和 24 中實現公平份額的能力充滿信心。

Jon, there are no further questions at this time. Please proceed with your closing remarks.

喬恩，目前沒有其他問題。請繼續您的結束語。

Thanks, Julie. This concludes Primo Water's Second Quarter Results Call. Thank you all for attending.

謝謝，朱莉。 Primo Water 第二季度業績電話會議到此結束。感謝大家的出席。

Ladies and gentlemen, this concludes the conference call for today. We thank you for joining, and you may now disconnect your lines. Thank you.

女士們、先生們，今天的電話會議到此結束。我們感謝您的加入，您現在可以斷開線路了。謝謝。