Republic Services Inc (RSG) 2023 Q1 法說會逐字稿

Good afternoon, and welcome to the Republic Services First Quarter 2023 Investor Conference Call. Republic Services is traded on the New York Stock Exchange under the symbol RSG.

下午好，歡迎來到 Republic Services 2023 年第一季度投資者電話會議。 Republic Services 在紐約證券交易所上市交易，代碼為 RSG。

(Operator Instructions)

（操作員說明）

Please note, this event is being recorded.

請注意，正在記錄此事件。

I would now like to turn the conference over to Aaron Evans, Vice President of Investor Relations. Please go ahead, sir.

我現在想將會議轉交給投資者關係副總裁 Aaron Evans。請繼續，先生。

I would like to welcome everyone to Republic Services First Quarter 2023 Conference Call. Jon Vander, our CEO; and Brian DelGhiaccio, our CFO, are joining me as we discuss our performance. I would like to take a moment to remind everyone that some of the information we discuss on today's call contains forward-looking statements, which involve risks and uncertainties and may be materially different from our actual results. Our SEC filings discuss factors that could cause actual results to differ materially from expectations. The material that we discuss today is time-sensitive. If in the future, you listen to a rebroadcast or rerecording of this conference call, you should be sensitive to the date of the original call, which is April 27, 2023. Please note that this call is the property of Republic Services, Inc. Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Republic Services is strictly prohibited.

歡迎大家參加 Republic Services 2023 年第一季度電話會議。我們的首席執行官喬恩·范德 (Jon Vander)；我們的首席財務官 Brian DelGhiaccio 和我一起討論我們的業績。我想花點時間提醒大家，我們在今天的電話會議上討論的一些信息包含前瞻性陳述，這些陳述涉及風險和不確定性，可能與我們的實際結果存在重大差異。我們向美國證券交易委員會提交的文件討論了可能導致實際結果與預期存在重大差異的因素。我們今天討論的材料是時效性的。如果將來您收聽此電話會議的重播或重新錄音，您應該注意原始電話的日期，即 2023 年 4 月 27 日。請注意，此電話是 Republic Services, Inc. 的財產。未經 Republic Services 明確書面同意，嚴禁以任何形式重新分發、轉發或轉播此電話。

I want to point out that our SEC filings, our earnings press release, which includes GAAP reconciliation tables and a discussion of business activities, along with the recording of this call, are available on our Republic's website at republicservices.com. I want to remind you that Republic's management team routinely participates in investor conferences. When events are scheduled, the dates, times and presentations are posted on our website.

我想指出，我們的 SEC 文件、我們的收益新聞稿，其中包括 GAAP 調節表和商業活動的討論，以及本次電話會議的錄音，都可以在我們共和國的網站 republicservices.com 上找到。我想提醒您，Republic 的管理團隊定期參加投資者會議。當安排好活動時，日期、時間和介紹會發佈在我們的網站上。

With that, I would like to turn the call over to Jon.

有了這個，我想把電話轉給喬恩。

Thanks, Aaron. Good afternoon, everyone, and thank you for joining us. We started the year strong and are pleased with our first quarter results. Our performance reflects our ability to grow across our business while enhancing profitability. We remain well positioned to capitalize on additional growth opportunities in the marketplace by providing the most complete set of products and services to customers.

謝謝，亞倫。大家下午好，感謝您加入我們。我們今年開局強勁，對第一季度的業績感到滿意。我們的業績反映了我們在提高盈利能力的同時實現業務增長的能力。通過為客戶提供最完整的產品和服務，我們仍然處於有利地位，可以利用市場上的額外增長機會。

During the quarter, we delivered revenue growth of 21%, including 11% from acquisitions, generated adjusted earnings per share of $1.24 and produced $496 million of adjusted free cash flow. We continue to believe that investing in acquisitions is the best use of free cash flow to create long-term value. We invested $224 million in acquisitions during the first quarter. All transactions were in the recycling and solid waste space. Our acquisition pipeline remains supportive of outsized levels of activity in both recycling and solid waste and environmental solutions businesses. We continue to see opportunity for well over $500 million of investment in value-creating acquisitions in 2023.

本季度，我們實現了 21% 的收入增長，其中 11% 來自收購，調整後每股收益為 1.24 美元，調整後自由現金流為 4.96 億美元。我們仍然相信，投資收購是利用自由現金流創造長期價值的最佳方式。我們在第一季度投資了 2.24 億美元用於收購。所有交易都在回收和固體廢物領域。我們的收購管道仍然支持回收和固體廢物以及環境解決方案業務的超大規模活動。我們繼續看到 2023 年價值創造型收購投資超過 5 億美元的機會。

We are making great progress on the integration of US Ecology and increasing the profitability of our Environmental Solutions business. We continue to adjust prices to earn an appropriate return on the valuable services we provide. The acceptance of our pricing actions remains high with very little customer defection. Cross-selling our complete set of products and services continues to run ahead of plan with more than $60 million in new sales to date. We have now achieved over $40 million of annualized cost synergies. As a result of the actions taken in the Environmental Solutions business, EBITDA margin improved to just over 20% during the first quarter.

我們在整合 US Ecology 和提高環境解決方案業務的盈利能力方面取得了長足進步。我們不斷調整價格，以從我們提供的有價值的服務中獲得適當的回報。我們的定價行為的接受度仍然很高，幾乎沒有客戶流失。交叉銷售我們的全套產品和服務繼續超前完成計劃，迄今為止的新銷售額超過 6000 萬美元。我們現在已經實現了超過 4000 萬美元的年度成本協同效應。由於在環境解決方案業務中採取的行動，第一季度的 EBITDA 利潤率提高到略高於 20%。

We continue to generate outsized growth by executing our strategy, supported by our differentiating capabilities, customer zeal, digital and sustainability. Regarding customers' yield, we remain laser-focused on providing a world-class customer experience to drive increased loyalty and organic growth. Our customer retention rate remained at 94%.

在我們的差異化能力、客戶熱情、數字化和可持續性的支持下，我們通過執行我們的戰略繼續實現超額增長。關於客戶的收益，我們仍然專注於提供世界一流的客戶體驗，以提高忠誠度和有機增長。我們的客戶保留率保持在 94%。

We continue to see positive trends in our Net Promoter Score, supported by improved service delivery. Our frontline colleagues, including drivers, technicians and the customer experience team are determined to fulfill our daily commitments to our customers. We delivered robust organic revenue growth during the quarter and simultaneously increase in both price and volume. For price and related revenue increased to 9.3% and average yield on related revenue increased to 7.4%. Organic volume growth on related revenue was 1.8%. Volume growth was broad-based across our market verticals and geographies.

在改進的服務交付的支持下，我們繼續看到我們的淨推薦值呈積極趨勢。我們的一線同事，包括司機、技術人員和客戶體驗團隊，決心履行我們對客戶的日常承諾。我們在本季度實現了強勁的有機收入增長，同時實現了價格和數量的增長。價格和相關收入增長至 9.3%，相關收入的平均收益率增長至 7.4%。相關收入的有機銷量增長為 1.8%。我們的垂直市場和地區的銷量增長是廣泛的。

Turning to digital. We continue to make progress on deploying RISE tablets in our collection business. Over 75% of our residential routes are operating with RISE tablets. The remaining routes are on track to be completed by midyear. This technology is the foundation that will allow us to further enhance our digital service offerings and improve our customers' experience.

轉向數字。我們在收集業務中部署 RISE 平板電腦方面繼續取得進展。我們超過 75% 的住宅路線都使用 RISE 平板電腦運營。其餘路線有望在年中完成。這項技術是我們進一步增強數字服務產品和改善客戶體驗的基礎。

Moving on to sustainability. We are investing in differentiated capabilities to leverage sustainability as a platform for profitable growth. In February, we announced our plans to significantly scale our electric fleet through our long-term agreement with Oshkosh. We will begin operating 2 fully integrated electric recycling and solid waste collection prototypes later this year and expect to start buying at scale in 2025. This announcement supports our industry-leading commitment to fleet electrification through a multi-supplier strategy. Development of our polymer centers in Las Vegas and the Midwest remain on track with the centers becoming operational in late 2023 and late 2024, respectively. The 57 renewable natural gas projects being co-developed with our partners are advancing. We expect at least 6 of these projects to commence operations this year. Our approach to sustainability includes our aspiration to be the employer of choice in the markets that we serve, and we are seeing positive results. Turnover rates continue to improve, and we are now below 2019 levels.

轉向可持續性。我們正在投資於差異化能力，以利用可持續性作為實現盈利增長的平台。 2 月，我們宣布了通過與豪士科 (Oshkosh) 簽訂的長期協議大幅擴大電動車隊的計劃。我們將在今年晚些時候開始運營 2 個完全集成的電動回收和固體廢物收集原型，並預計將在 2025 年開始大規模採購。該公告支持我們通過多供應商戰略實現車隊電氣化的行業領先承諾。我們在拉斯維加斯和中西部的聚合物中心的開發仍在按計劃進行，這些中心分別將於 2023 年底和 2024 年底投入運營。與合作夥伴共同開發的57個可再生天然氣項目正在推進中。我們預計這些項目中至少有 6 個將在今年開始運營。我們的可持續發展方法包括我們渴望成為我們所服務市場的首選雇主，並且我們看到了積極的成果。離職率繼續提高，我們現在低於 2019 年的水平。

As a result, we are better staffed to capitalize on growth opportunities in the market. We continue to be widely recognized for our comprehensive sustainability performance. For example, we were recently named to Barron's 100 Most Sustainable Companies list, Ethisphere's World's Most Ethical Companies list and Fortune's list of the World's Most Admired Companies.

因此，我們可以更好地利用市場增長機會。我們的綜合可持續發展績效繼續得到廣泛認可。例如，我們最近入選了《巴倫周刊》100 家最具可持續發展能力的公司名單、Ethisphere 全球最具商業道德公司名單和財富雜誌全球最受讚賞公司名單。

A positive momentum in our business continues to build as we harness the power of our differentiated capabilities. We will continue to invest for the future profitable growth to deliver the results that create unmistakable value for our stakeholders.

隨著我們利用差異化能力的力量，我們業務的積極勢頭不斷增強。我們將繼續投資於未來的盈利增長，以交付為我們的利益相關者創造明確價值的成果。

I will now turn the call over to Brian, who will provide financial details for the quarter.

我現在將電話轉給布賴恩，他將提供本季度的財務細節。

Thanks, Jon. Core price on total revenue was 8.2%. Core price on related revenue was 9.3%, which included open market pricing of 11.7% and restricted pricing of 5.4%. The components of core price on related revenue included small container of 12.6%, large container of 9.6% and residential of 8.4%. Average yield on total revenue was 6.5%.

謝謝，喬恩。核心價格佔總收入的 8.2%。相關收入的核心價格為 9.3%，其中公開市場定價為 11.7%，限制定價為 5.4%。相關收入的核心價格組成部分包括小型集裝箱 12.6%、大型集裝箱 9.6% 和住宅 8.4%。總收入的平均收益率為 6.5%。

Average yield on related revenue was 7.4%, an increase of 70 basis points when compared to our fourth quarter performance. We continue to price new and existing business ahead of cost inflation to drive margin expansion in the underlying business. Volume on total revenue increased 1.6%, while volume on related revenue increased 1.8%. The components of volume on related revenue included an increase in small container of 1.6%, an increase in large container of 80 basis points and an increase in landfill of 8.6%.

相關收入的平均收益率為 7.4%，與我們第四季度的業績相比增加了 70 個基點。我們繼續在成本上漲之前為新業務和現有業務定價，以推動基礎業務的利潤率增長。總收入增長 1.6%，而相關收入增長 1.8%。相關收入的組成部分包括小型集裝箱增長 1.6%、大型集裝箱增長 80 個基點和垃圾填埋場增長 8.6%。

Landfill was primarily driven by a 21.7% increase in special waste revenue. Moving on to recycling. Commodity prices were $105 per ton in the quarter. This compared to $201 per ton in the prior year. Recycling processing and commodity sales decreased revenue by 90 basis points during the quarter. Current commodity prices are approximately $115 per ton. We believe that commodity prices will continue to recover in the second half of the year as the global supply/demand imbalance continues to correct. Next, turning to our Environmental Solutions business. First quarter Environmental Solutions revenue increased $309 million over the prior year, which primarily relates to the acquisition of US Ecology. On a same-store basis, Environmental Solutions contributed 50 basis points to internal growth during the quarter.

垃圾填埋場主要受特殊廢物收入增長 21.7% 的推動。繼續回收。本季度商品價格為每噸 105 美元。相比之下，去年每噸 201 美元。本季度回收加工和商品銷售收入減少了 90 個基點。目前的商品價格約為每噸 115 美元。我們認為，隨著全球供需失衡的持續糾正，大宗商品價格將在下半年繼續復甦。接下來，轉向我們的環境解決方案業務。第一季度 Environmental Solutions 收入比上年增加 3.09 億美元，這主要與收購 US Ecology 有關。在同店基礎上，Environmental Solutions 在本季度為內部增長貢獻了 50 個基點。

Adjusted EBITDA margin for the Environmental Solutions business was 20.6%, a sequential increase of 350 basis points. Total company adjusted EBITDA margin for the first quarter was 29%. This compares to 30.4% in the prior year. Margin performance during the quarter included a 130 basis point decrease from acquisitions, which includes 90 basis points related to US Ecology, a 60 basis point decrease from recycled commodity prices and a 30 basis point decrease from an additional work day, partially offset by a 40 basis point increase from net fuel and margin expansion in the underlying business of 40 basis points.

環境解決方案業務的調整後 EBITDA 利潤率為 20.6%，環比增長 350 個基點。第一季度公司調整後的 EBITDA 利潤率為 29%。相比之下，去年為 30.4%。本季度的利潤率表現包括收購減少 130 個基點，其中包括與美國生態相關的 90 個基點、回收商品價格減少 60 個基點以及額外工作日減少 30 個基點，部分被 40 個基礎業務的淨燃料和利潤率增加 40 個基點。

Adjusted free cash flow was $496 million in the first quarter or approximately 25% of the midpoint of our full year guidance. Free cash flow conversion was 47.6%. Total debt was $12.1 billion, and total liquidity was $2.5 billion. Our leverage ratio at the end of the quarter was approximately 3.1x. With respect to taxes, our combined tax rate and effects from solar investments resulted in an equivalent tax impact of 26.3% during the first quarter, which was in line with our expectations.

第一季度調整後的自由現金流為 4.96 億美元，約為我們全年指引中點的 25%。自由現金流轉換率為 47.6%。債務總額為 121 億美元，流動性總額為 25 億美元。我們在本季度末的槓桿率約為 3.1 倍。在稅收方面，我們的綜合稅率和太陽能投資的影響在第一季度產生了 26.3% 的等效稅收影響，這符合我們的預期。

With that, operator, I'd like to open the call to questions.

有了這個，接線員，我想開始提問。

(Operator Instructions)

（操作員說明）

The first question comes from Toni Kaplan with Morgan Stanley.

第一個問題來自摩根士丹利的 Toni Kaplan。

Pricing seemed really strong this quarter. I know you talked about it sort of decelerating through the year, but just wanted to get your latest thoughts. Any additional color on pricing and how second quarter looks as well?

本季度的定價似乎非常強勁。我知道你談到它在這一年中有點減速，但只是想了解你的最新想法。關於定價的任何其他顏色以及第二季度的外觀如何？

Yes, certainly a very strong environment still. We expect to kind of maintain that momentum for the first half and for lots of reasons, we think that sequentially comes down into the second half, right, as some inflation starts to modulate in our restricted portion of our business, obviously, right, CPI comes down in terms of where the comps go, but we also expect cost inflation to modulate through the year. So we think we'll have pretty good price margin spread throughout the year, which will lead to a positive result for the year.

是的，當然仍然是一個非常強大的環境。我們希望在上半年保持這種勢頭，並且出於很多原因，我們認為這種勢頭會依次下降到下半年，因為一些通貨膨脹開始在我們業務的受限部分進行調節，顯然，對，CPI就補償的去向而言，但我們也預計成本通貨膨脹將在今年進行調整。因此，我們認為全年我們將有相當不錯的價差，這將導致今年取得積極成果。

Terrific. And I wanted to ask if you could just give us an update on how you're thinking about the specialty waste opportunity? Talk about any of the synergies and areas of potential future opportunity there.

了不起。我想問你是否可以向我們介紹一下你如何看待專業廢物機會的最新情況？討論那裡的任何協同作用和未來潛在機會的領域。

Yes, a really strong quarter for us, obviously, right, over 20% and broad-based, and a portion of that is certainly the cross-sell opportunities that I talked about in my prepared remarks, and that we're offering customers a comprehensive and integrated offering. And part of that is showing up in our recycling and solid waste business and going so specialty waste into our landfill. And that's the benefit of our offering, right?

是的，對我們來說是一個非常強勁的季度，顯然，正確的，超過 20% 並且基礎廣泛，其中一部分肯定是我在準備好的發言中談到的交叉銷售機會，我們正在為客戶提供全面和集成的產品。其中一部分出現在我們的回收和固體廢物業務中，並將特殊廢物送入我們的垃圾填埋場。這就是我們產品的好處，對吧？

We can take things into liquid hazardous waste, we can take solid hazardous waste, we can take special waste, so we can provide a range of solutions to customers, and that's to put us in a pretty differentiated position in the marketplace and excited about the momentum that the team has.

我們可以把東西變成液體危險廢物，我們可以把固體危險廢物，我們可以把特殊廢物，所以我們可以為客戶提供一系列的解決方案，這讓我們在市場上處於一個非常不同的位置，並對團隊擁有的勢頭。

Yes. And also what I would add to that is that our pipeline for special waste opportunities remains very strong. And about 20% of that pipeline is a direct result of cross-sell opportunities.

是的。而且我要補充的是，我們的特殊廢物機會管道仍然非常強大。大約 20% 的管道是交叉銷售機會的直接結果。

Congrats, again.

恭喜，再次。

The next question comes from Tyler Brown with Raymond James.

下一個問題來自 Tyler Brown 和 Raymond James。

So sorry, I just want to be clear. So are you effectively just reiterating all the pieces of the guidance?

很抱歉，我只想說清楚。那麼，您是否有效地重申了指南的所有部分？

Yes, we feel -- we're certainly -- feel good about the guidance at this point.

是的，我們覺得 - 我們當然 - 對目前的指導感覺良好。

Okay. This wasn't totally 100% clear. But kind of going back and following on the previous question, I know pricing was strong out of the gate. But can you talk a little bit about unit cost inflation? So I think you guys guided to something like 5% to 5.5% unit cost inflation for '23, I think on the last quarter call, you kind of still see that? Are you still seeing maybe inflation starting high and then it kind of eases as the year goes on?

好的。這還不是完全 100% 清楚。但是回到前面的問題，我知道定價很強勁。但是你能談談單位成本通脹嗎？所以我認為你們指導了 23 年 5% 到 5.5% 的單位成本通脹，我想在上個季度的電話會議上，你們仍然看到了嗎？你是否仍然看到通貨膨脹率開始很高，然後隨著時間的推移有所緩解？

Yes, start where you ended. It's certainly starting higher and modulating throughout the course of the year. I think it's going to be a little higher than the 5.5% probably closer to 6% would be our best look at this point right now. And a few different factors on that. Certainly, truck delivery would be one where we got about 90% of our trucks last year, and we think we're going to get probably that 10% from last year and about 90% of this year, and we're growing.

是的，從你結束的地方開始。它肯定會在一年中開始走高並調整。我認為它會比 5.5% 略高一點，可能接近 6% 是我們目前最好的觀察。還有一些不同的因素。當然，卡車交付將是我們去年獲得約 90% 卡車的方式，我們認為我們可能會從去年獲得 10% 和今年的 90% 左右，而且我們正在增長。

So that means we're buying some older trucks -- operating some older trucks to service those growth opportunities, and they have a higher cost per engine hour. And so that's elevated maintenance costs. It's higher cost, not necessarily unit cost inflation on the part, for example, it's just operating more expensive vehicles. And hopefully, in 2024, the suppliers catch up, but we can kind of get back on track. So that would be one example why it's just a little bit higher than we predicted.

因此，這意味著我們要購買一些舊卡車——運營一些舊卡車來為這些增長機會提供服務，而且它們每發動機小時的成本更高。因此，這增加了維護成本。這是更高的成本，不一定是單位成本通脹，例如，它只是運營更昂貴的車輛。希望在 2024 年，供應商能夠迎頭趕上，但我們可以重回正軌。所以這就是為什麼它比我們預測的高一點點的一個例子。

Okay. All right. That's perfect. Just one last one here. Going back to Environmental Services. So there's a lot of traction there. It seems like that franchise is maybe run rating $1.5 billion in total revenues, and I don't have the calculation on my fingertips here. But is that kind of like a low 20% margin today. I think you had talked about maybe getting that to 30% longer term. So do you still see that, Jon?

好的。好的。那很完美。這裡只有最後一個。回到環境服務。所以那裡有很多牽引力。看起來特許經營權的總收入可能達到 15 億美元，我這裡沒有計算結果。但這有點像今天 20% 的低利潤率。我想你已經談到過可能將其延長 30%。所以你還看到嗎，喬恩？

And kind of what are the couple of the key drivers to get you there? Is it just we need to go through a couple more cycles of pricing? Or just any thoughts on timing and how we go from, call it, 20 to circa 30?

讓你到達那裡的幾個關鍵驅動因素是什麼？是不是我們需要再經歷幾個定價週期？或者只是關於時間以及我們如何從 20 歲到大約 30 歲的任何想法？

Yes. Listen, I think pricing is certainly going to be a huge lever in terms of how we get there and the primary lever, I think a little bit of scale benefit, obviously, which allows us to leverage our overhead. We've built this thing for growth. So as we continue to grow, we get some leverage on our overhead spend in that space as well.

是的。聽著，我認為就我們如何到達那里和主要槓桿而言，定價肯定會成為一個巨大的槓桿，我認為有一點規模效益，顯然，這使我們能夠利用我們的間接費用。我們為增長而建造了這個東西。因此，隨著我們的不斷發展，我們也在該領域的管理費用上獲得了一些影響力。

And just additional integration opportunities across recycling and solid waste business, right? We haven't really taken advantage of all of those things yet. And then the last one will be just cost management, right? Cost discipline and making sure that we are pricing work appropriately in understanding the cost position of all that work so that all of our individual opportunities and projects are profitable. We've made great progress on that, but there's more room in front of us. And this was the investment thesis when we did the deal, obviously. So we did it based on intrinsic and $40 million of cost synergies. We've just gotten there quicker than we expected, right?

以及跨回收和固體廢物業務的額外整合機會，對嗎？我們還沒有真正利用所有這些東西。然後最後一個將只是成本管理，對嗎？成本紀律並確保我們在了解所有工作的成本位置時適當地定價工作，以便我們所有的個人機會和項目都是有利可圖的。我們在這方面取得了很大進展，但我們面前還有更多空間。顯然，這就是我們進行交易時的投資主題。因此，我們基於內在和 4000 萬美元的成本協同效應來做到這一點。我們到達那裡的速度比我們預期的要快，對嗎？

We've gotten the 40% rate. I think we're going to end up closer to 50% when we're set and done. And then we thought there was upward pressure on pricing. We thought there was cross-sell opportunities. We said we'd get $75 billion to $100 billion over 3 years. We've already gotten $60 billion, which tells you we have a good pipeline, which tells you that we're going to get to that $75 billion to $100 billion quicker than we expected. And we know that when we price, we anticipate there will be some customer fallout churn, but the net dollars work over time. We've just seen very, very little churn, which speaks to the fact that this is a valuable offering. It's a very small portion of the vast majority of our customers' cost structure and that we're going to continue to price for the value we deliver.

我們得到了 40% 的利率。我認為當我們準備就緒並完成時，我們最終將接近 50%。然後我們認為定價存在上行壓力。我們認為存在交叉銷售機會。我們說我們將在 3 年內獲得 750 億至 1000 億美元。我們已經獲得了 600 億美元，這告訴你我們有一個很好的管道，這告訴你我們將比我們預期的更快地達到 750 億到 1000 億美元。而且我們知道，當我們定價時，我們預計會有一些客戶流失，但淨美元會隨著時間的推移而發揮作用。我們剛剛看到非常非常少的客戶流失，這說明這是一個有價值的產品。這只是我們絕大多數客戶成本結構的一小部分，我們將繼續為我們提供的價值定價。

The next question comes from Noah Kaye with Oppenheimer.

下一個問題來自 Noah Kaye 和 Oppenheimer。

There's been maybe some mixed messages today in earnings -- previous earnings around the macro, the health of the macro. I have a feeling your answer may be not so mixed, maybe a little more unambiguous. But can you talk today about the health of the customer, the sustainability of your pricing? You mentioned that your retention rates are at 94%. So they're sticking. But looking at your -- both the pricing and some of the volume trends you reported, they're very robust. And so would just love your perspective on what you're seeing in the staying power of some of these trends.

今天的收益可能有一些混合信息——之前圍繞宏觀的收益，宏觀的健康狀況。我覺得你的回答可能不是那麼複雜，也許更明確一點。但是您今天能談談客戶的健康狀況以及定價的可持續性嗎？您提到您的保留率為 94%。所以他們堅持。但是看看你的——無論是定價還是你報告的一些銷量趨勢，它們都非常強勁。因此，我會喜歡你對你所看到的一些趨勢的持久力的看法。

Yes. Let me put a caveat on first, which is we remain humble and dynamic, right? The last 3 years have bought a lot of people that there's fundamental uncertainty in the market and I read the same things you do, which is people have been talking about a recession, you announced for 12 to 18 months. So we have our eyes and ears open and that will be nimble should that occur. All that being said, we see a lot of positive signs, right? We're seeing strong growth and pricing. Let me give you a number or a perspective. In our open market, right, we're sending out more -- a higher gross price increase than we ever had before and our realization rate, which is the percentage of that pricing that sticks, right?

是的。首先讓我警告一下，我們保持謙遜和活力，對嗎？在過去的 3 年裡，很多人都相信市場存在根本的不確定性，我讀到你所做的同樣的事情，人們一直在談論經濟衰退，你宣布了 12 到 18 個月。因此，我們睜大眼睛和耳朵，如果發生這種情況，那將是靈活的。綜上所述，我們看到了很多積極的跡象，對吧？我們看到強勁的增長和定價。讓我給你一個數字或一個觀點。在我們的公開市場上，對，我們發送了更多 - 比以往任何時候都更高的總價格漲幅和我們的實現率，即堅持定價的百分比，對吧？

Customers don't call back to negotiate, et cetera, is the highest it's ever been, which is somewhat of an astounding number to think about. They were putting a lot of price. That price is sticking in the marketplace for growing. We talked about special waste in that pipeline being strong. We're starting to see a commodity rebound, which we put a modest rebound in our plan, and I think we feel really good that the outlook there looks strong on that front. We've seen a little decline in temp units year-over-year. We anticipated that in our plan with where residential and commercial construction were going at the end of last year, but our yield number is very, very strong there. So we're doing some of that to ourselves in terms of yielding on those assets. So we're pretty confident in the very near term and cautiously optimistic around the demand environment for the remainder of the year.

客戶不回電進行談判，等等，是有史以來最高的，想想這個數字就有點驚人了。他們付出了很多代價。該價格在市場上保持增長。我們談到了該管道中的特殊廢物很強大。我們開始看到大宗商品反彈，我們將適度反彈納入我們的計劃，我認為我們感覺非常好，因為這方面的前景看起來很強勁。我們看到臨時單位同比略有下降。我們預計，在我們的計劃中，住宅和商業建築將在去年年底進行，但我們的收益率數字非常非常強勁。因此，就這些資產的收益而言，我們正在為自己做一些事情。因此，我們對近期非常有信心，並對今年剩餘時間的需求環境持謹慎樂觀態度。

Yes. And then maybe just a little bit of a follow-on, but also housekeeping. Can you comment to what MSW tons did and then did the quarter have any benefit on the cleanup related to the train derailment in Ohio? I don't know if remediation work ended up being significant.

是的。然後可能只是一些後續工作，還有家政服務。您能否評論 MSW 噸做了什麼，然後該季度對與俄亥俄州火車脫軌相關的清理有任何好處嗎？我不知道整治工作最終是否具有重大意義。

Yes. Let me address the MSW. So MSW volume was up 1.2%. I think more importantly, though, MSW yield was up 5.6%. So very strong pricing in that portion of our business.

是的。讓我來談談 MSW。因此，城市固體廢物量增長了 1.2%。不過，我認為更重要的是，城市固體廢棄物產量上升了 5.6%。我們這部分業務的定價非常高。

And then the specific to rem in Ohio, I think is the one you're referring to, a de minimis impact in the quarter.

然後是俄亥俄州 rem 的具體情況，我認為這就是你所指的那個，對本季度的影響微乎其微。

Okay. So it was really all just strong demand in kind of the Environmental Services part of the business. And can you give us sort of a sense of how much of that was price?

好的。因此，這實際上只是對業務中環境服務部分的強烈需求。你能告訴我們其中有多少是價格嗎？

Very strong, very broad-based. Listen, we've gone out with multiple double-digit price increases, which is sticking. Obviously, that business is more unique, and there's a lot of mix elements because you're doing a lot of individual project work and a lot of things like special waste on the hazard side that come in, right? So we haven't yet developed our yield metric, which we aspire to do over time in that portion of the business. And I'd say the industrial economy from our seat in the park is still very strong.

非常強大，基礎非常廣泛。聽著，我們已經進行了多次兩位數的價格上漲，而且還在堅持。顯然，該業務更加獨特，並且有很多混合元素，因為您正在做很多單獨的項目工作，還有很多東西，比如危險方面的特殊廢物，對吧？所以我們還沒有製定我們的收益率指標，我們希望隨著時間的推移在這部分業務中做到這一點。我想說我們園區的工業經濟仍然非常強勁。

Now it's not universally strong, automotive, for example, would be a spot that's a little bit down. So we're seeing some of that in the Midwest, which has a lot of manufacturing capacity there, but other parts are very, very strong on the industrial side.

現在它不是普遍強大，例如汽車，將是一個有點低的地方。所以我們在中西部看到了一些這樣的情況，那裡有很多製造能力，但其他部分在工業方面非常非常強大。

The next question comes from Walter Spracklin with RBC Capital Markets.

下一個問題來自 RBC Capital Markets 的 Walter Spracklin。

I wanted to go back to the recession question and really talk about it. I know your resiliency is quite admirable during the cycle. Just curious with -- you have a little bit of a different book of business now compared to '08, '09. And just wondering what your thoughts are on whether the resiliency of your earnings profile is as good as it was back then or if the addition of US Ecology has added any volatility there? And particularly on special waste, I don't know if you've answered many questions about your sensitivity to a recessionary environment on your special waste volumes, if you have any color on that?

我想回到經濟衰退問題並真正談論它。我知道您在周期中的彈性非常令人欽佩。只是好奇——與 08 年、09 年相比，你現在的業務有所不同。只是想知道您對您的收益狀況的彈性是否與當時一樣好，或者美國生態學的加入是否增加了那裡的波動性有何看法？特別是關於特殊廢物，我不知道你是否已經回答了很多關於你對特殊廢物量的衰退環境的敏感性的問題，如果你有任何顏色？

Yes. Walter, I would say the first thing to keep in perspective is that Environmental Solutions revenue in total is about 10% of our book, right? You got to keep that in mind. That being said, a good portion of this revenue stream is has a consistent and recurring nature to it, right? And increasingly more, we're trying to get closer to the customer to make that more of an annuity-type revenue stream. So, is it exactly the same? Maybe not, but is it pretty close? I would say, yes.

是的。沃爾特，我要說的第一件事是，環境解決方案的總收入大約占我們賬面收入的 10%，對吧？你必須記住這一點。話雖這麼說，這個收入流的很大一部分具有一致和經常性的性質，對吧？而且越來越多，我們正試圖更接近客戶，以使其更多地成為年金類型的收入來源。那麼，是不是完全一樣呢？也許不是，但它很接近嗎？我會說，是的。

And sensitivity on special waste, any sense there?

對特殊廢物的敏感性，有什麼意義嗎？

As far as -- yes, I think you got moving pieces there. Obviously, when the economy goes down, right, people will get cautious and things that have discretion to them, you're going to see some delays. But the vast majority of our special waste, those are jobs that need to get completed. They need to get done. So it's not a matter of the job getting canceled. It's a matter of the job getting pushed. And I'd say the counterbalance of that right now is just all of the infrastructure spending and government funding.

至於——是的，我認為你在那裡有移動的部分。顯然，當經濟下滑時，人們會變得謹慎，他們可以自行決定的事情，你會看到一些延遲。但是我們的絕大多數特殊廢物，都是需要完成的工作。他們需要完成。所以這不是工作被取消的問題。這是工作被推的問題。我想說現在的平衡就是所有的基礎設施支出和政府資金。

We see a lot of those opportunities just starting to emerge, but we really haven't taken advantage of a lot of that spending hasn't flowed all the way through to jobs being commissioned yet.

我們看到很多這樣的機會才剛剛開始出現，但我們真的沒有利用其中的很多機會，因為這些支出還沒有一直流到被委託的工作崗位上。

The next question comes from Sean Eastman with KeyBanc Capital Markets.

下一個問題來自 KeyBanc Capital Markets 的 Sean Eastman。

A nice start to the year. I kind of hate to do this, but just pressing on the guidance. I mean, not much of a mention on kind of where we stand. To me, it kind of feels like we're running ahead of schedule. So I just wanted to run that by you. Is it fair to say that perhaps with the momentum in Environmental Solutions, clearly, price volume looking strong that we're kind of tracking a little ahead of that initial outlook for the year?

美好的一年開始了。我有點討厭這樣做，但只是按指導去做。我的意思是，沒有太多提及我們的立場。對我來說，感覺就像我們提前完成了計劃。所以我只想由你來運行它。可以公平地說，也許隨著環境解決方案的勢頭，很明顯，價格量看起來很強勁，我們有點提前追踪今年的初步展望？

We feel really good about the start to the business and shift in outlook remains quite positive. As you know, it's a seasonal business, so you got to ramp up here in Q2 and Q3. And we'll want to see that ramp up fully take hold. We're starting certainly to see some of that already, but that gets in the full swing here in May and into the summer months in the northern part of the country. And so we'll come back in July when we talk again and see our progress there, and we'll tell you if we have any update at that point.

我們對業務的開始感覺非常好，前景的轉變仍然非常積極。如您所知，這是一項季節性業務，因此您必須在第二季度和第三季度增加業務。我們希望看到這種增長將完全站穩腳跟。我們肯定已經開始看到其中的一些，但在 5 月和該國北部的夏季月份，這種情況會全面展開。因此，我們將在 7 月再次討論並查看我們在那裡取得的進展時回來，屆時我們會告訴您是否有任何更新。

Okay. Understood. And perhaps the moving parts on the year-on-year margin bridge in the first quarter would be helpful to assess. I mean, did those kind of commodity inputs come through as expected? That one would be good to jump into.

好的。明白了。也許第一季度同比利潤率橋上的移動部分將有助於評估。我的意思是，這些商品投入是否如預期的那樣通過了？跳進去會很好。

Yes. From a commodity perspective, we're tracking almost exactly the way that we thought we would, right? So we thought we would start the year right around this, call it, $100 a ton, sequentially increasing with a full year average of about $125 per ton. And so right now, we would say with what we saw in the first quarter on average plus where current prices are at $115 per ton, it's playing out exactly the way we thought it would.

是的。從商品的角度來看，我們幾乎完全按照我們認為的方式進行跟踪，對嗎？所以我們認為我們將在今年開始，稱之為每噸 100 美元，全年平均每噸 125 美元左右。所以現在，我們會說我們在第一季度看到的平均價格加上當前價格為每噸 115 美元，它的表現完全符合我們的預期。

And so when you think about the margin cadence of that, you look -- in this quarter, it was a 60 basis point headwind. We think it's a relatively consistent headwind in Q2. That drops to, call it, a 20 basis point headwind in Q3 and then flip positive in Q4 at those levels.

因此，當你考慮它的保證金節奏時，你會看到 - 在本季度，這是一個 60 個基點的逆風。我們認為這是第二季度相對穩定的不利因素。這在第三季度下降到，稱之為 20 個基點的逆風，然後在第四季度在這些水平上翻轉為正。

Okay. Perfect. And one last quick one for me. I just wanted to make sure I understand this big special waste print in the quarter. I mean, are you guys saying that as a reflection of the cross-sell opportunity really coming through on the Environmental Solutions strategy?

好的。完美的。最後一個快速給我。我只是想確保我了解本季度的這個大的特殊廢印。我的意思是，你們是說這反映了環境解決方案戰略真正實現的交叉銷售機會嗎？

Certainly in part, right? That's why you're going to see it. When you actually sell into the recycling and solid waste business, what you're going to see is that's where a good portion of it is going to come in. That's a lot of the volume aspect of it. But at the same time, we're seeing that -- again, we're talking about total revenue being up about 22%.

當然有一部分，對吧？這就是為什麼你會看到它。當你真正出售回收和固體廢物業務時，你將看到的是其中很大一部分將進入的地方。這是它的很多方面。但與此同時，我們看到了——再次，我們談論的是總收入增長了約 22%。

It's a pretty good split between both price and volume. So it's a combination of both, and that's going to be a reflection again of just healthy activity, which includes the benefits of that cross-sell.

價格和數量之間的比例非常好。所以它是兩者的結合，這將再次反映健康活動，其中包括交叉銷售的好處。

The next question comes from Stephanie Moore with Jefferies.

下一個問題來自 Jefferies 的 Stephanie Moore。

I wanted to touch a little bit on the M&A environment. I think you noted that you expected to execute on, I think, close to $500 million in M&A this year, not included in the guidance. So maybe if you just wanted to touch on what you've seen for the first quarter of the year and kind of any changes or expectations there? And I know you noted that a lot of those acquisitions is in the recycling and solid waste business. But what about more so in the specialty waste? Is that an opportunity this year as well?

我想稍微談談併購環境。我想你注意到你預計今年將執行近 5 億美元的併購，這不包括在指導中。那麼，也許您只是想談談您在今年第一季度看到的情況以及那裡的任何變化或期望？我知道你注意到很多收購都是在回收和固體廢物業務中進行的。但是在專業垃圾中更是如此呢？今年也是這個機會嗎？

So yes, we put out in our initial guidance. We anticipated spending $500 million. I think we'll exceed that number as we go throughout the year. We have a really attractive pipeline, both in recycling and solid waste and Environmental Solutions. And so I think you'll see some of those deals come across through the remainder of the year, and we get -- things are at different stages, right? We're all the way in the front end of conversations to the back end of letters of intent, and we report on things once we sign and close those deals. So you'll hear more in the second quarter.

所以是的，我們提出了初步指導意見。我們預計花費 5 億美元。我認為我們全年都會超過這個數字。我們在回收和固體廢物以及環境解決方案方面擁有非常有吸引力的管道。所以我認為你會在今年餘下的時間裡看到其中一些交易，我們得到 - 事情處於不同的階段，對吧？我們一直在對話的前端到意向書的後端，一旦我們簽署並關閉這些交易，我們就會報告事情。所以你會在第二季度聽到更多。

And the exact timing of where that flows between Q2, Q3 and Q4, obviously, we don't predict that because things can pull forward or they can move out a few months here or there. The pipeline remains strong. I think both for '23 and all the way into '24 at this point. We feel really good about the pipeline.

顯然，我們無法預測第二季度、第三季度和第四季度之間流動的確切時間，因為事情會向前發展，或者它們會在這里或那裡移動幾個月。管道仍然強勁。我認為在這一點上，無論是 23 年還是一直到 24 年。我們對管道感覺非常好。

Got it. And then maybe touching back on the pricing and the cost environment as well. And you just noted on 2024. And obviously, a lot of things could happen between here and there. But how would you think about that just general structural spread cost -- between pricing cost as we move through 2024, given some of the maybe headwinds this year and what next year in theory could be a more normalized environment, if that exists anymore, but how would you view just how that spread has changed over time versus maybe historically?

知道了。然後可能還會談到定價和成本環境。你剛剛注意到 2024 年。顯然，這里和那裡可能會發生很多事情。但是你如何看待一般的結構性利差成本——在我們走過 2024 年的定價成本之間，考慮到今年可能存在的一些不利因素，以及明年理論上可能是一個更加正常化的環境，如果這種情況已經存在的話，但是您如何看待這種價差隨著時間的推移而發生的變化，而不是歷史上的變化？

Yes. Look, we remain committed to pricing ahead of our cost inflation to allow us to expand margins across the business. So we've talked about 30 to 50 basis points of margin expansion. That's kind of the pace that we go after, and that would be our initial ingoing assumption in 2024. Now a lot can change between now and then in terms of could we get more than that, right? If we can do that and maintain and improve the health of our overall business, we'll certainly do that, but more to come down the road here on 2024 perspective.

是的。看，我們仍然致力於在成本通脹之前進行定價，以使我們能夠擴大整個業務的利潤率。所以我們已經討論了 30 到 50 個基點的利潤率擴張。這就是我們追求的步伐，這將是我們在 2024 年的初步假設。現在，從現在到那時，我們可以得到更多的東西可以改變很多，對吧？如果我們能夠做到這一點並保持和改善我們整體業務的健康狀況，我們當然會這樣做，但從 2024 年的角度來看，我們會在未來走得更遠。

The next question comes from Tony Bancroft with Gabelli Funds.

下一個問題來自 Gabelli Funds 的 Tony Bancroft。

A very nice quarter. Just a question on PFAS. Could you just sort of review -- I know there's a lot of news articles coming out about that right now and some potential rulings and some regulation coming out. Just maybe review what that potentially means for you in landfill cost structure, potential opportunities, maybe that would be helpful.

一個非常好的季度。只是關於 PFAS 的問題。你能不能簡單回顧一下——我知道現在有很多關於這個的新聞報導，一些潛在的裁決和一些法規正在出台。也許只是回顧一下這對您在垃圾填埋場成本結構和潛在機會中的潛在意義，也許這會有所幫助。

Yes. Very important, that regulation. And again, we're not opposed to regulation, we happen if it's well constructed. So we have a seat at that table. And we're involved in those conversations to make sure that we don't, as a company, or even an industry get penalized for something that we catch, right? We didn't create the problem. People should be happy that we've got the modern infrastructure and systems to protect the environment.

是的。很重要，那個規定。再說一遍，我們並不反對監管，只要監管得當，我們就會反對。所以我們在那張桌子上有一個座位。我們參與這些對話是為了確保我們不會，作為一家公司，甚至是一個行業，因為我們發現的東西而受到懲罰，對吧？我們沒有製造問題。人們應該為我們擁有保護環境的現代基礎設施和系統而感到高興。

Net-net, we see it as more of an opportunity over time, especially with our Environmental Solutions business and being able to serve customers. Could that have some elevated costs in our landfill, yes, we've got a really good history of passing those types of costs, regulatory costs on to customers. And so more to come on that as we move forward. But we're very much in the conversation and we'll be active in shaping the legislation in a way that it enhances the business versus penalizes the business.

Net-net，隨著時間的推移，我們將其視為更多機會，尤其是對於我們的環境解決方案業務以及能夠為客戶提供服務。這會不會增加我們垃圾填埋場的成本，是的，我們在將這些類型的成本、監管成本轉嫁給客戶方面有著非常好的歷史。隨著我們的前進，還有更多的事情要做。但我們非常積極地參與對話，我們將積極制定立法，以增強業務而不是懲罰業務的方式。

And then I guess my second one, just on electrification. You touched on in your comments. Just maybe again, an update on that. You've talked about in the past, but how is that going? There's been some, I think people are talking about infrastructure issues and making it all sort of work. What's your view on it? Is it on track? Is it off track? Or just maybe you could give us some thoughts on that.

然後我想我的第二個，只是關於電氣化。你在評論中提到了。也許再次更新。你過去談過，但那是怎麼回事？有一些，我認為人們正在談論基礎設施問題並使其成為可能。你怎麼看？它走上正軌了嗎？偏離軌道了嗎？或者你可以就此給我們一些想法。

No, very much on track. We've got more than 20 trucks right around the country right now that are electrified through multiple manufacturers. We talked about our Oshkosh partnership and that the first kind of bottoms up zero emission-designed vehicle and excited about that. And we'll be -- that number of 20 will go north of 50 next year. By 2025, we'll have several hundred vehicles. And it is important. It's not just the vehicle, it's the system. So you need to have the infrastructure, you need to have understanding of government regulations, you need to understand the incentives, and we've been working for years on those things and have multiple infrastructure projects already going on, anticipating where we're going to put vehicles in working closely with customers.

不，很正常。目前，我們在全國各地擁有 20 多輛卡車，這些卡車通過多家製造商實現了電氣化。我們談到了我們與 Oshkosh 的合作夥伴關係，以及第一種自下而上的零排放設計車輛，並對此感到興奮。我們將 - 明年 20 人的數量將超過 50 人。到 2025 年，我們將擁有數百輛汽車。這很重要。不僅僅是車輛，還有系統。所以你需要有基礎設施，你需要了解政府法規，你需要了解激勵措施，我們多年來一直致力於這些事情，並且已經進行了多個基礎設施項目，預計我們要去哪裡讓車輛與客戶緊密合作。

So we feel we're on track. And listen, innovation is hard. There will be some bumps and twists and turns, but we're really, really confident that this is a product that the customers want to buy and that this is very viable for -- again, for us to operate in a way that enhances our business versus penalized.

所以我們覺得我們走上了正軌。聽著，創新很難。會有一些顛簸和曲折，但我們真的非常有信心，這是客戶想要購買的產品，而且這是非常可行的 - 再一次，我們以增強我們的方式運營業務與處罰。

The next question comes from Tobey Sommer with Truist Securities.

下一個問題來自 Truist Securities 的 Tobey Sommer。

When you look at your M&A bogey for this year and you say you have pretty good visibility in the pipeline for next year as well. What does the pipeline look like in terms of distribution across your businesses? Is it -- and has that changed as you've engaged in conversations?

當您查看今年的併購忌時，您會說您對明年的計劃也有很好的了解。就您的業務分佈而言，管道是什麼樣的？是嗎——當你參與對話時，這種情況是否發生了變化？

Well, if you go back from 5 years ago, it certainly has changed when we were predominantly vastly recycling and solid waste player, and we've obviously grown the Environmental Solutions business to Bill's point, right, that's still about 10% of the business broadly. The pipeline is probably an 80-20 mix of 80% recycling and solid waste and 20% Environmental Solutions. So that will grow faster just because there's more geographies to fill in. There's a few product lines to build out. So there's more kind of inherent growth in that in terms of our starting point.

好吧，如果你回顧 5 年前，當我們主要從事大量回收和固體廢物處理時，情況肯定已經發生了變化，而且我們顯然已經將環境解決方案業務發展到比爾的觀點，對，這仍然是業務的 10% 左右寬廣地。該管道可能是 80-20 的混合體，其中 80% 是回收和固體廢物，20% 是環境解決方案。所以它會增長得更快，因為有更多的地區需要填補。有一些產品線需要建立。因此，就我們的起點而言，這方面有更多的內在增長。

But the balance of the business will still be recycling and solid waste and I feel really confident about that. In any given time period, right, that could ship a single deal could flip it to 80-20 in any given quarter. But if you look across a longer-time horizon of 3 to 5 years, I think that 80-20 makes us a pretty good barometer.

但業務的平衡仍將是回收和固體廢物，我對此很有信心。是的，在任何給定的時間段內，單筆交易可能會在任何給定的季度內將其增加到 80-20。但如果你看一下 3 到 5 年的較長時間範圍，我認為 80-20 使我們成為一個很好的晴雨表。

Right. And year-to-date, if you look at your employee base, what has the trend been like in not just employee turnover or perhaps improved turnover and attrition rates, but also the heavy lift that it is to recruit and hire new ads and train them? Are both of those sides of the equation getting easier?

正確的。年初至今，如果你看看你的員工基礎，趨勢如何，不僅是員工流動率或可能提高的流動率和流失率，還有招聘和僱用新廣告和培訓的繁重工作他們？等式的兩邊都變得更容易了嗎？

Yes. Turnover is down. Employee engagement is up from a very high watermark. So people are engaged, right? Turnover is down, and this is the recruiting situation in the last 4 to 5 months has substantially improved, right? Number of applicants per open rec has substantially improved. So there's still pockets of tightness around so it could be very geographically dependent. But from a broad-based macro level as the situation versus 6 months ago is substantially better.

是的。營業額下降。員工敬業度從一個非常高的水位線上升。所以人們訂婚了，對吧？營業額下降了，這就是最近四五個月的招聘情況有了很大的改善，對吧？每個 open rec 的申請人數已大大提高。所以周圍仍然存在一些緊張的地方，所以它可能在地理上非常依賴。但從廣泛的宏觀層面來看，情況與 6 個月前相比要好得多。

Is there room for continued improvement? Or are we already at healthy metrics if you make a longer-term comparison more than just sort of the Great Recession in 6 month ago period?

是否有持續改進的空間？或者，如果您進行長期比較而不僅僅是 6 個月前的大衰退，我們是否已經處於健康指標？

Yes. We talked about turnover being below 2019 levels. We aspire to continue to grind that down kind of 30 to 50 basis points of product turnover long term would be great for us. Turnover is never going to be 0 people move and have changes in life circumstances, and there's always opportunity bringing new talent, but we'll look to bring that down. But we feel like right now, we're at a very healthy level and that we can continue to improve from here.

是的。我們談到營業額低於 2019 年的水平。我們渴望繼續將產品周轉率長期降低 30 到 50 個基點，這對我們來說非常好。營業額永遠不會是 0 人的流動和生活環境的變化，總是有機會帶來新的人才，但我們會設法降低這種情況。但我們覺得現在，我們處於非常健康的水平，我們可以從這裡繼續改進。

The next question comes from Jerry Revich with Goldman Sachs.

下一個問題來自高盛的 Jerry Revich。

I'm wondering if you could talk about the performance in the quarter. So your margins were up about 2 points sequentially 1Q versus 4Q, which is a good bit better-than-normal seasonality? Is it possible to parse how much of that was price cost and the municipal solid waste part of the business? You mentioned the ESPs. I wonder if you could just flesh out the rest of that bridge in terms of that performance versus normal seasonality?

我想知道你是否可以談談本季度的表現。所以你的利潤率在第一季度和第四季度連續增長了大約 2 個百分點，這比正常的季節性好一點？是否可以解析其中有多少是價格成本和業務的城市固體廢物部分？你提到了 ESP。我想知道您是否可以根據該性能與正常季節性來充實該橋的其餘部分？

Yes. Jerry, we mentioned sequentially the Environmental Solutions business improving 350 basis points. But also in the fourth quarter, remember, as we outperformed the year, we had heavier incentive compensation expense in the fourth quarter. So I would say there were some things that were more unique in Q4 as far as expenses are concerned off to a strong start this year. I think that's why you're seeing more of that sequential improvement. This year, we would expect just more normal seasonality and a Q4 that looks like what you've seen in the -- our 3 to 4 years as compared to what you saw last year from a margin perspective.

是的。傑里，我們連續提到環境解決方案業務提高了 350 個基點。但同樣在第四季度，請記住，由於我們的表現優於當年，我們在第四季度的激勵補償費用更高。所以我想說，就今年開局良好的支出而言，第四季度有些事情更加獨特。我認為這就是為什麼你會看到更多的連續改進。今年，我們預計季節性會更加正常，第四季度看起來就像你在 3 到 4 年裡看到的那樣，與去年從利潤率的角度來看相比。

Super helpful. And then can I ask you, it feels like cost are stabilizing. Should we look for the price/cost gap sequentially to improve in the second quarter as a result of that dynamic?

超級有幫助。然後我能問你嗎，感覺成本正在穩定。由於這種動態，我們是否應該在第二季度尋找價格/成本差距的連續改善？

Yes. Some of -- when we think about some of the cost inflation, we see some of the anniversarying, which is just a little bit more of when we saw some of those cost increase going into play last year. So yes, we start to anniversary some of those things in the second quarter. We started seeing a lot of that more on the wage side. We also start to see some of that modulate from a comp perspective on transportation costs beginning in the third and fourth quarter. So we would expect the inflation levels to decrease as we move sequentially. Again, it's not that we're seeing a significant price decrease in the current period. It's just that we're anniversarying the cost increase that went in, in the prior year.

是的。一些 - 當我們考慮一些成本通脹時，我們看到了一些週年紀念日，這只是我們看到去年其中一些成本增加發揮作用的時候。所以是的，我們在第二季度開始紀念其中的一些事情。我們開始在工資方面看到更多。從第三季度和第四季度開始，我們還開始從運輸成本的補償角度看到其中一些調整。因此，我們預計通貨膨脹水平會隨著我們的順序移動而下降。同樣，這並不是說我們在當前期間看到價格大幅下跌。只是我們正在紀念前一年的成本增加。

Got it. And lastly, can I trouble you to share with us the incremental tailwinds to your business from the plastics and landfill gas investments that are scheduled to come online for '24 versus '23 and '25 versus '24? When do we get the most significant step up relative to the cadence?

知道了。最後，我能否麻煩您與我們分享計劃在 24 年與 23 年以及 25 年與 24 年上線的塑料和垃圾填埋氣投資對貴公司業務的增量順風？相對於節奏，我們什麼時候獲得最顯著的進步？

Yes. So if you think about -- let me start with the plastic side on the polymer center. So that's -- you start to see that in '24 start to layer in with, call it, $15 million or so of EBITDA, and then it really ramp up into '25 and into '26 until you get to a run rate of, call it, somewhere in that $75 million plus type EBITDA range. When you take a look at from a gas perspective, again, most of that, you're starting to see -- again, you start to see the first projects come online towards the end of '23. So most of the contribution coming in '24, you could see $25 million plus type of incremental EBITDA in '24 and then sequentially in a $15 million to $20 million per year until we get to that $100 million worth of total contribution by 2028.

是的。因此，如果您考慮 - 讓我從聚合物中心的塑料面開始。所以這就是 - 你開始看到在 24 年開始分層，稱之為 1500 萬美元左右的 EBITDA，然後它真的上升到 25 年和 26 年，直到你達到運行率，稱之為 7500 萬美元以上的 EBITDA 範圍內的某個地方。當你再次從天然氣的角度來看，其中大部分，你開始看到 - 再一次，你開始看到第一個項目在 23 年底上線。因此，大部分貢獻來自 24 年，您可以在 24 年看到 2500 萬美元以上的增量 EBITDA，然後每年依次增加 1500 萬至 2000 萬美元，直到我們在 2028 年達到價值 1 億美元的總貢獻。

The next question comes from Kevin Chiang with CIBC.

下一個問題來自 CIBC 的 Kevin Chiang。

Maybe just on Environmental Services, obviously, a good showing in Q1 here. You continue to make good progress. I get the sense earlier on when you acquired US Ecology, there was a fear that this business was more cyclical. Just wondering, as you cross-sell more and as you kind of pull this under the RSG umbrella, do you think it changes the cyclicality of that business? Like does the customer look at that service differently if they're also buying other RSG services? I know it's early days, but just wondering how that experience has been, just given the broader economy has been shaky here.

也許只是在環境服務方面，顯然，這裡在第一季度表現不錯。你繼續取得良好的進步。當你收購 US Ecology 時，我很早就感覺到，人們擔心這項業務更具週期性。只是想知道，隨著交叉銷售的增加，以及將其納入 RSG 保護傘下，您認為它會改變該業務的周期性嗎？如果客戶還購買了其他 RSG 服務，他們會以不同的方式看待該服務嗎？我知道現在還為時過早，但只是想知道這種經歷如何，因為這裡的整體經濟一直不穩定。

I think 2 things are true. When you're just a -- predominantly a post-collections player, everything you see can look variable and cyclical because it could be a recurring revenue stream, but that provider might farm that out or source that out to a few different places looking for price. When you get closer to the generator, right, then you own -- you have control of that product. Now could they take that somewhere else? Of course, they could over time. But when you provide excellent service and you have an integrated offering, you become stickier.

我認為有兩件事是真的。當你只是一個 - 主要是一個後收集播放器時，你看到的一切看起來都是可變的和周期性的，因為它可能是一個經常性的收入來源，但該供應商可能會將其外包或採購到幾個不同的地方尋找價格。當你靠近發電機時，對，你就擁有了——你就控制了那個產品。現在他們可以把它帶到別的地方嗎？當然，他們可以隨著時間的推移。但是，當您提供優質服務並且擁有集成產品時，您就會變得更加粘性。

And so, huge opportunity that we're seeing right now to take things that might have looked more cyclical or volatile or variable to become more consistent and recurring in the revenue stream. That doesn't mean that will be 100% of it like we have in our current business, right? We have some of that base work. On the landfill side, we'll certainly have some of that. But over time, the profile will migrate closer to the recycling and solid waste side.

因此，我們現在看到了巨大的機會，可以讓那些看起來更具週期性、波動性或可變性的東西在收入流中變得更加一致和反復出現。這並不意味著它將像我們目前的業務那樣 100%，對吧？我們有一些基礎工作。在垃圾填埋場方面，我們肯定會有一些。但隨著時間的推移，概況將向回收和固體廢物方面靠攏。

Okay. That's helpful. I apologize if this is somewhere in your release, but if I look at your organic growth composition, let's call it 80-20 split between yield and volume or price and volume. What would that look like today in your Environmental Services business, if I deconstruct the organic growth between volume and price? I apologize if I missed this earlier.

好的。這很有幫助。如果這在您發布的某個地方，我深表歉意，但如果我看一下您的有機增長構成，我們稱其為產量和數量或價格和數量之間的 80-20 分配。如果我解構數量和價格之間的有機增長，那麼今天您的環境服務業務會是什麼樣子？如果我之前錯過了這個，我深表歉意。

Yes, I would probably say it's probably relatively similar just from the perspective of some of these are project-related jobs. We have seen -- that being said, we've seen really good pricing in that business, but we've also just seen an increase of activity at the same time, which is really a function of now offering the most complete set of products and services in the space, right? So again, we're seeing a combination of both, and that's what's really driving the outsized revenue growth in that portion of the business.

是的，我可能會說，從其中一些與項目相關的工作的角度來看，它可能相對相似。我們已經看到 - 也就是說，我們已經看到該業務的定價非常好，但同時我們也看到了活動的增加，這實際上是現在提供最完整的產品集的功能和空間中的服務，對嗎？因此，我們再次看到兩者的結合，這才是真正推動該業務部分收入大幅增長的原因。

Congrats on a great start to the year.

祝賀今年有個好的開始。

The next question comes from Mike Feniger with Bank of America.

下一個問題來自美國銀行的 Mike Feniger。

Brian, the growth on the ES side and now layering in the incremental EBITDA from plastic recycling and the landfill DAS in '24 and beyond, does that change how we should be thinking about the free cash flow conversion and the improvement you guys are seeing there and potentially going forward?

Brian，ES 方面的增長以及現在在 24 年及以後的塑料回收和垃圾填埋場 DAS 中增加的 EBITDA 分層，這是否改變了我們應該如何考慮自由現金流轉換以及你們在那裡看到的改進並可能向前發展？

Well, look, I mean, we said that rewinding the clock 2, 3 years ago, and we were up high 30% free cash flow conversion company. We've moved that into the mid-40s, and we said we have line of sight into the high 40% and beyond, right? And we're working on these things. And again, those are some of the things that we're going to do in order to achieve that level of performance even while we're overcoming some headwinds to getting into that high 40% interest expense is a headwind to free cash flow conversion, the expiration of bonus depreciation, which is phasing out over the next 5 years. Those are all headwinds. And even in the face of those things, we think we can achieve that level of performance. And everything you just mentioned is the way we're going to get there.

好吧，看，我的意思是，我們說過 2、3 年前倒轉時鐘，我們是一家自由現金流轉換率高達 30% 的公司。我們已經將其移至 40 年代中期，我們說我們的視線達到了 40% 及以上，對嗎？我們正在研究這些事情。再一次，即使我們正在克服一些不利因素，以達到 40% 的高利息支出是自由現金流轉換的不利因素，但這些都是我們為了實現這種績效水平而要做的一些事情，紅利折舊到期，該折舊將在未來 5 年內逐步取消。這些都是逆風。即使面對這些事情，我們也認為我們可以達到那個水平的表現。您剛才提到的一切都是我們實現目標的方式。

Great. And I realize the regional banking crisis tightening lending standards is likely not an issue for you and your customers. Do you hear of any issues for some of your smaller regional competitors, ability to finance and buy you trucks, trying to expand? Just curious how that changed competitive dynamic or even some of the M&A opportunity going forward?

偉大的。我意識到區域銀行業危機收緊貸款標準對您和您的客戶來說可能不是問題。您是否聽說過您的一些較小的區域競爭對手在融資和購買卡車的能力方面存在任何問題，試圖擴張？只是好奇這會如何改變競爭動態，甚至是未來的一些併購機會？

I don't think we've seen that show up specifically. There's probably an example somewhere in our M&A pipeline. Of that being the case, I do think it's becoming more challenging, right? Because given supply chain challenges, right, because we got 90% of our trucks. If you were a spot buyer of trucks, right, you're in a really tough spot, right? You're going to be driving that truck, not as a matter of months, but a matter of years before you can get allocation on that. So digital, we've talked about that a number of times. That being the second moat in the business and our investments in that space and the ability to service customers and connect it to our operations and core systems, I feel they are all things that make an attractive time for smaller players to sell.

我不認為我們已經看到具體出現。我們的併購管道中可能有一個例子。既然如此，我確實認為它變得更具挑戰性，對吧？因為給定供應鏈挑戰，對，因為我們擁有 90% 的卡車。如果你是卡車的現貨買家，對吧，你真的處境艱難，對吧？你要開那輛卡車，不是幾個月的事，而是幾年後你才能得到分配。如此數字化，我們已經討論過很多次了。這是業務的第二條護城河，我們在該領域的投資以及為客戶提供服務並將其連接到我們的運營和核心系統的能力，我認為它們都是吸引小公司銷售的好時機。

The next question comes from Michael E. Hoffman with Stifel.

下一個問題來自 Stifel 的 Michael E. Hoffman。

On the ES business, there's a bunch of pieces here. One, can you help fill in the gaps on what contributed to the 350 basis points sequentially? And then the idea of margin improving, I just want to make sure I understand mix. I mean, if I -- if I'm wrong, I'm wrong, but I thought about 1/3 of this was fixed asset disposals, so high margin and 2/3 is sort of billable hour services that are good returns but lower margin. I'm trying to figure out where that mix goes in order to achieve the target that was suggested earlier in the call.

關於 ES 業務，這裡有很多內容。第一，你能幫助填補對 350 個基點的貢獻的差距嗎？然後是提高利潤率的想法，我只是想確保我理解混合。我的意思是，如果我——如果我錯了，我就錯了，但我認為其中 1/3 是固定資產處置，所以利潤率很高，而 2/3 是按小時計費的服務，回報不錯，但較低的保證金。我試圖弄清楚混合的去向，以實現電話會議早些時候建議的目標。

Yes, Michael, first of all, I think that it's a little bit more, I would sit there and say in the 50-50 rather than the 30-70 between those 2 aspects of the business. I think you have a combination of things. First, let's talk about what happened sequentially, right? So we talked about price increases that we put in late in '22 as well as early '23. So a certain aspect of that was certainly timing. Also, as you just think about increasing utilization as we're actually achieving the cross-sell, some of that is that we're utilizing some excess capacity that's in that system. So it's -- the flow-through of that incremental revenue is at a very high margin. We're seeing the combination of the both. So Jon mentioned it when we were on the call, some of the way that we're going to get there is also just by scale.

是的，邁克爾，首先，我認為它有點多，我會坐在那裡說在業務的這兩個方面之間的 50-50 而不是 30-70。我認為你有多種因素。首先，讓我們談談順序發生的事情，對吧？所以我們談到了我們在 22 世紀末和 23 年初提出的價格上漲。因此，其中的某個方面肯定是時機。此外，當您只是考慮在我們實際實現交叉銷售時提高利用率時，其中一些是我們正在利用該系統中的一些過剩產能。所以它 - 增量收入的流通量非常高。我們看到了兩者的結合。所以喬恩在我們通話時提到了這一點，我們實現目標的一些方式也只是按比例。

When you take a look at the size of our areas, when you take a look at our 4 areas, they're managing less revenue than their counterparts on the recycling and solid waste space, which gives us capacity to grow into that and leverage that SG&A. So we built that area structure to look a lot like the recycling and solid waste side, even though they're managing less revenue, which gives them opportunity to grow without adding any additional SG&A costs.

當你看看我們的區域規模時，當你看看我們的 4 個區域時，他們管理的收入低於回收和固體廢物領域的同行，這使我們有能力發展並利用它SG＆A。因此，我們構建的區域結構看起來很像回收和固體廢物方面，儘管他們管理的收入較少，這讓他們有機會在不增加任何額外 SG&A 成本的情況下發展。

And Michael, on the field services side of the business, but some of that would be getting MSAs with large industrial customers who we know are going to have a set of projects throughout the year. They're going to be in different spots. But if you look over a 10-year period, right, you've got a relatively consistent demand profile of their level of project spend, cleanup, plant turnarounds, et cetera, that you can -- when you have the MSA and the relationship, right, that revenue stream then look -- starts to look very recurring versus it's just an event or a job.

和邁克爾，在業務的現場服務方面，但其中一些將與大型工業客戶簽訂 MSA，我們知道這些客戶全年都會有一系列項目。他們會在不同的地方。但是，如果你回顧 10 年的時間，對，你對他們的項目支出、清理、工廠周轉等水平的需求概況有一個相對一致的需求概況，當你擁有 MSA 和關係時，對，然後收入流看起來 - 開始看起來非常經常性，而不是它只是一個事件或工作。

Okay. And that's always been the secret challenge or challenge for the billable hours world as they struggle with utilization of their billable hour resource. So what I'm hearing you say is you're striking a balance on how to maximize that.

好的。這一直是計費時間世界的秘密挑戰或挑戰，因為他們正在努力利用其計費時間資源。所以我聽到你說的是你在如何最大化它上取得平衡。

Correct.

正確的。

Okay. On the price cadence for the remainder of the year to get to the 5.5%, can you help us with the mix between open and restricted through the remainder of the year, so we sort of understand how to think about that, that gets us to the total of 5.5% for the year?

好的。關於今年剩餘時間內達到 5.5% 的價格節奏，您能否幫助我們在今年剩餘時間內將開放和限制之間的組合，以便我們了解如何考慮這一點，這讓我們能夠全年總計5.5%？

Yes. So the -- if you think about -- we expect sequential increase into Q2 on the restricted portion of the book, and that kind of hit high watermark, and then it will decrease sequentially. Our expectation is it will decrease sequentially into Q3 and Q4. We think the high watermark on the open market is here in Q1, and it decreases sequentially but modestly. So again, I would sit there and as we talked about earlier, I guess, 60 days ago at this point, that the spread between the high and the low by quarter is not that significant. Call it, 50, 60 basis points, plus or minus, from the midpoint, and that's what we would expect for the full year.

是的。所以 - 如果你考慮 - 我們預計這本書的限制部分會連續增加到第二季度，並且達到高水位線，然後它會連續減少。我們的預期是它會連續下降到第三季度和第四季度。我們認為公開市場的高水位線出現在第一季度，並且會連續但溫和地下降。因此，我會再次坐在那裡，正如我們之前所討論的那樣，我猜，在 60 天前的這一點上，按季度計算的高點和低點之間的差距並不那麼顯著。從中點算起，50、60 個基點，加上或減去，這就是我們對全年的預期。

Okay. And just to be clear, so I got these numbers, I mean, numbers coming at us, the high watermark for the beginning of the year -- sorry, I'm flipping pages. There's 11.7% in the open and 5.4% for restricted.

好的。明確一點，所以我得到了這些數字，我的意思是，這些數字向我們襲來，是年初的高水位線——抱歉，我在翻頁。公開賽佔 11.7%，限制賽佔 5.4%。

Yes, that is correct. That's on core price, Michael.

對，那是正確的。這是核心價格，邁克爾。

That's core. Not yield. What was the yields?

那是核心。不屈服。產量是多少？

Correct. Well, the yield in total, we don't break the yield up between the 2, yield in total with 7.4% on related revenue. On total revenue, it was 6.5%. And again, if you're building it into a model, go ahead.

正確的。那麼，總收益率，我們不會將兩者之間的收益率分開，總收益率為相關收入的 7.4%。佔總收入的 6.5%。再說一次，如果您要將其構建到模型中，請繼續。

No, go ahead, please. That's what I was...

不，請繼續。那就是我...

I was going to say the reason we do -- we break the 2 out that if you're building it on a model and you're using the base, the entire base period revenue probably have to use the total revenue number. Again, we disclosed the related revenue because we don't calculate price on all components of revenue. So again, do you want to get the true effectiveness of our pricing programs, that's why related revenue is applicable.

我要說的是我們這樣做的原因——我們打破了 2，如果你在一個模型上構建它並且你正在使用基礎，那麼整個基期收入可能必須使用總收入數字。同樣，我們披露了相關收入，因為我們沒有計算收入所有組成部分的價格。再次重申，您是否想獲得我們定價計劃的真正有效性，這就是相關收入適用的原因。

Okay. And then, Jon, you made a comment earlier to an answer to a question, said 6%, and I missed -- is that 6% inflation or you thought yield would maybe land at 6% by the end of the year?

好的。然後，喬恩，你早些時候對一個問題的回答發表了評論，說 6%，但我錯過了——是 6% 的通貨膨脹率，還是你認為收益率可能會在今年年底下降到 6%？

No. We said cost inflation, we think, throughout the year, right, we'll be -- end up around 6% where (inaudible) are going into the year, 5.5%, right? So we're seeing a little elevation there, primarily here in the first -- in the second quarter. But again, we're pricing ahead of our expectations as well. So we're getting the performance that we expected, just a little bit different path to get there.

不，我們說成本通脹，我們認為，全年，對，我們將 - 最終在 6% 左右（聽不清）進入今年，5.5%，對嗎？所以我們在那裡看到了一點提升，主要是在第一季度 - 第二季度。但同樣，我們的定價也超出了我們的預期。所以我們得到了我們預期的性能，只是到達那裡的路徑有點不同。

Right. Which would suggest the guide of 5.5% probably works its way up to staying on top of that?

正確的。哪個建議 5.5% 的指南可能會一直保持領先地位？

We'll update you in July.

我們將在 7 月為您更新。

At this time, there appears to be no further questions. Mr. Vander Ark, I'll turn the call back over to you for closing remarks.

此時，似乎沒有進一步的問題。 Vander Ark 先生，我會將電話轉回給您，請您發表結束語。

Thank you, Vishavi. I would like to thank our 40,000 employees for their commitment to deliver and essential service in the markets we serve. Our results are a direct reflection of the team's ongoing efforts to deliver best-in-class service to all our customers. Have a good evening and be safe.

謝謝你，維沙維。我要感謝我們的 40,000 名員工，感謝他們致力於在我們所服務的市場提供基本服務。我們的成績直接反映了團隊為向所有客戶提供一流服務而做出的不懈努力。晚上好，注意安全。

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

會議現已結束。感謝您參加今天的演講。你們現在可能都斷開連接了。