Republic Services Inc (RSG) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to the Republic Services First Quarter 2024 Investor Conference Call. Republic Services is traded on the New York Stock Exchange under the symbol RSG. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Aaron Evans, Vice President of Investor Relations.

下午好，歡迎參加 Republic Services 2024 年第一季投資人電話會議。 Republic Services 在紐約證券交易所上市，代號為 RSG。 （操作員說明）請注意，正在記錄此事件。我現在想將會議交給投資者關係副總裁亞倫·埃文斯 (Aaron Evans)。

Thank you. I would like to welcome everyone to Republic Services First Quarter 2024 Conference Call. Jon Vander Ark, our CEO; and Brian DelGhiaccio, our CFO, are on the call today 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 actual results.

謝謝。歡迎大家參加 Republic Services 2024 年第一季電話會議。喬恩‧范德‧阿克 (Jon Vander Ark)，我們的執行長；我們的財務長 Brian DelGhiaccio 今天在電話中討論我們的表現。我想花點時間提醒大家，我們在今天的電話會議中討論的一些資訊包含前瞻性陳述，其中涉及風險和不確定性，可能與實際結果有重大差異。

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 recording of this conference call, you should be sensitive to the date of the original call, which is April 30, 2024. Please note that this call is 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.

我們向 SEC 提交的文件討論了可能導致實際結果與預期有重大差異的因素。我們今天討論的材料具有時間敏感性。如果您將來收聽本次電話會議的重播或錄音，您應該注意原始電話會議的日期，即 2024 年 4 月 30 日。明確書面同意，嚴禁以任何形式重新分發、轉播或轉播本通話。

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 a recording of this call, are available on 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.

我想指出的是，我們向 SEC 提交的文件、我們的收益新聞稿（其中包括 GAAP 調節表和業務活動討論）以及本次電話會議的錄音，均可在 Republic 的網站 Republicservices.com 上獲取。我想提醒您的是，Republic 的管理團隊定期參加投資者會議。安排活動後，日期、時間和演示會發佈在我們的網站上。

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

說到這裡，我想把電話轉給喬恩。

Thanks, Aaron. Good afternoon, everyone, and thank you for joining us. Our strong first quarter results demonstrate our focus on profitably growing the business. We produced revenue growth, both organically and through acquisitions, while enhancing profitability across the enterprise. During the quarter, we achieved revenue growth of 8%, generated adjusted EBITDA growth of 12%, expanded adjusted EBITDA margin by 120 basis points, reported adjusted earnings per share of $1.45 and produced $535 million of adjusted free cash flow. The results we delivered are made possible by executing our strategy, supported by our differentiated capabilities.

謝謝，亞倫。大家下午好，感謝您加入我們。我們強勁的第一季業績顯示我們專注於業務的獲利成長。我們透過有機方式和收購實現了收入成長，同時提高了整個企業的獲利能力。本季度，我們實現了 8% 的營收成長，調整後 EBITDA 成長 12%，調整後 EBITDA 利潤率擴大了 120 個基點，調整後每股收益為 1.45 美元，調整後自由現金流為 5.35 億美元。我們交付的成果是透過執行我們的策略並在我們差異化能力的支持下實現的。

Regarding customer zeal, our efforts to provide best-in-class essential services and sustainability offerings continue to drive customer loyalty and organic growth in the business. Our customer retention rate remained high at over 94%, and we continue to see favorable trends in our net promoter score as customers value our broad service offerings and the quality of our service delivery. Strong organic revenue growth during the first quarter was underpinned by core price on related revenue of 8.5% and average yield on related revenue of 7.3%.

關於客戶熱情，我們努力提供一流的基本服務和永續發展產品，持續推動客戶忠誠度和業務有機成長。我們的客戶保留率仍保持在 94% 以上的高位，隨著客戶重視我們廣泛的服務產品和服務交付的質量，我們的淨推薦值繼續呈現有利趨勢。第一季有機收入的強勁成長得益於 8.5% 的核心價格和 7.3% 的相關收入平均收益率。

This level of pricing exceeded our internal cost inflation and resulted in over 100 basis points of EBITDA margin expansion. Organic volume on related revenue declined 1.1%. Large-container and disposal volumes were negatively impacted by severe weather across most of our geographies during the first quarter. Most of the weather impact occurred in January, and we saw a notable rebound in volume performance in February and March as weather conditions normalized.

這個定價水準超過了我們的內部成本通膨，導致 EBITDA 利潤率擴張超過 100 個基點。相關收入的有機量下降 1.1%。第一季度，我們大部分地區的大型貨櫃和處置量受到惡劣天氣的負面影響。大部分天氣影響發生在 1 月份，隨著天氣狀況正常化，我們在 2 月和 3 月看到成交量顯著反彈。

Turning to our digital capabilities. The team continues to advance the implementation of digital tools that improve the experience for both customers and our employees. Our RISE digital operations platform is driving improved route optimization and safety performance and providing more predictable service delivery to our customers. Development of our new asset management system is underway, which is expected to increase maintenance technician productivity and enhance warranty recovery.

轉向我們的數位能力。該團隊繼續推進數位工具的實施，以改善客戶和員工的體驗。我們的 RISE 數位營運平台正在推動路線優化和安全性能的改進，並為客戶提供更可預測的服務交付。我們正在開發新的資產管理系統，預計將提高維修技術人員的工作效率並增強保固恢復。

We expect to begin deploying the new system later this year using a phased approach, which we estimate will result in $20 million of annual cost savings by 2026. We continue to benefit from advanced technology on recycling and waste collection routes. Our platform utilizes cameras to identify overfilled containers and contamination in recycling containers. This technology will reduce contamination in our recycling centers and is expected to generate approximately $60 million incremental annual revenue. To date, we have already achieved $30 million of annual benefit.

我們預計將在今年稍後開始採用分階段的方法部署新系統，我們估計到 2026 年每年將節省 2000 萬美元的成本。我們的平台利用攝影機來識別裝滿的容器和回收容器中的污染物。這項技術將減少我們回收中心的污染，預計每年將增加約 6,000 萬美元的收入。迄今為止，我們已實現年效益 3000 萬美元。

Moving on to sustainability. We believe that our sustainability innovation investments in plastic circularity and renewable natural gas are a platform for profitable growth. Development of our polymer centers and Blue Polymers joint venture facilities remains on track. Our Las Vegas polymer center is operational and delivery of plastic flake to our offtake partners began in March. Construction is progressing on our Indianapolis polymer center with equipment installation planned to begin in June. This operation will be co-located with a Blue Polymers production facility.

轉向可持續發展。我們相信，我們在塑膠循環和再生天然氣方面的可持續創新投資是獲利成長的平台。我們的聚合物中心和 Blue Polymers 合資工廠的開發仍在按計劃進行。我們的拉斯維加斯聚合物中心已投入運營，並於三月開始向我們的承購合作夥伴交付塑膠片。我們的印第安納波利斯聚合物中心的建設正在進行中，設備安裝計劃於 6 月開始。該工廠將與 Blue Polymers 生產設施位於同一地點。

The renewable natural gas projects being codeveloped with our partners continue to advance. One project came online during the first quarter, and we expect at least 7 additional projects to be completed in 2024. We continue to advance our efforts to support decarbonization, including our industry-leading commitment to fleet electrification. We currently have 15 collection vehicles in operations. We expect to have more than 50 additional EVs to be added to our fleet in 2024.

與合作夥伴共同開發的可再生天然氣項目不斷推進。第一季有一個專案上線，我們預計到 2024 年將完成至少 7 個專案。目前，我們有 15 輛收集車輛正在運作。我們預計到 2024 年我們的車隊將新增 50 多輛電動車。

We now have 7 facilities with commercial EV charging infrastructure. Development of 40 additional locations is underway with more than 10 new sites expected to be completed in 2024. As part of our approach to sustainability, we continually strive to be the employer of choice in the markets that we serve. Employee turnover continues to improve with our first quarter turnover rate improving 70 basis points compared to the prior year.

我們現在擁有 7 個擁有商業電動車充電基礎設施的設施。另外 40 個地點的開發正在進行中，其中 10 多個新地點預計將於 2024 年完工。員工流動率持續改善，第一季流動率比去年同期提高了 70 個基點。

As a result, we are better staffed to optimize our operations and capitalize on growth opportunities in the market. Our comprehensive sustainability performance continues to be widely recognized as Republic Services was recently named to Barron's 100 Most Sustainable Companies List, Ethisphere's World's Most Ethical Companies List and Fortune's Most Innovative Companies List.

因此，我們擁有更好的人員來優化我們的營運並利用市場的成長機會。我們全面的永續發展績效持續廣受認可，Republic Services 最近被評為《巴倫週刊》100 家最具永續發展公司名單、道德村協會全球最具商業道德公司名單和《財富》最具創新力公司名單。

With respect to capital allocation, we invested $41 million in acquisitions during the first quarter. Our acquisition pipeline remains supportive of continued activity in both the recycling and waste and environmental solutions businesses. We continue to see opportunity for $500 million of investment in value-creating acquisitions in 2024. Additionally, we returned $168 million to shareholders through dividends in the first quarter. I will now turn the call over to Brian, who will provide details on the quarter.

在資本配置方面，我們第一季投資了 4,100 萬美元用於收購。我們的收購管道仍然支援回收、廢棄物和環境解決方案業務的持續活動。我們繼續看到 2024 年投資 5 億美元進行價值創造收購的機會。我現在將把電話轉給布萊恩，他將提供有關本季的詳細資訊。

Thanks, Jon. Core price on total revenue was 7%. Core price on related revenue was 8.5%, which included open market pricing of 10.2% and restricted pricing of 5.7%. The components of core price on related revenue included small-container of 12.2%, large-container of 7.7% and residential of 8.1%. Average yield on total revenue was 6% and average yield on related revenue was 7.3%.

謝謝，喬恩。核心價格佔總收入的7%。相關收入的核心價格為8.5%，其中公開市場定價為10.2%，限制性定價為5.7%。相關收入核心價格的組成部分包括小型貨櫃12.2%、大型貨櫃7.7%和住宅8.1%。總收入平均收益率為6%，相關收入平均收益率為7.3%。

First quarter volume on total revenue decreased 90 basis points and volume on related revenue decreased 1.1%. The components of our volume performance included a decrease in large-container of 4.4%, primarily due to severe weather in January, along with continued softness in construction-related activity, and a decrease in residential of 2.6%. During the quarter, landfill MSW volume was up 1.6% and small-container volume increased 30 basis points.

第一季總收入下降 90 個基點，相關收入下降 1.1%。我們的貨運量表現包括大型貨櫃下降 4.4%（主要是由於 1 月的惡劣天氣以及建築相關活動持續疲軟）以及住宅下降 2.6%。本季度，垃圾掩埋場城市固體廢棄物量增加了 1.6%，小型貨櫃量增加了 30 個基點。

Moving on to recycling. Commodity prices were $153 per ton during the first quarter. This compared to $105 per ton in the prior year. Recycling processing and commodity sales increased revenue by 40 basis points during the quarter. Commodity prices are exceeding our initial expectations as current commodity prices are approximately $160 per ton.

繼續回收。第一季大宗商品價格為每噸 153 美元。相比之下，去年的價格為每噸 105 美元。本季回收加工和商品銷售收入增加了 40 個基點。大宗商品價格超出了我們最初的預期，目前大宗商品價格約為每噸 160 美元。

Now turning to our environmental solutions business. First quarter environmental solutions revenue increased $15 million compared to the prior year. The growth was due to the rollover impact from an acquisition that closed in the fourth quarter of 2023. Adjusted EBITDA margin in the environmental solutions business was 20.5%, which compared to 21% in the prior year. After considering the dilutive impact from a recent acquisition of 110 basis points, EBITDA margin in the environmental solutions business increased 60 basis points.

現在轉向我們的環境解決方案業務。第一季環境解決方案營收比前一年增加 1,500 萬美元。這一增長是由於 2023 年第四季度完成的收購的展期影響所致。考慮到近期收購帶來的 110 個基點的稀釋影響後，環境解決方案業務的 EBITDA 利潤率增加了 60 個基點。

Total company adjusted EBITDA margin for the first quarter expanded 120 basis points to 30.2%, which was driven by margin expansion in the underlying business of 110 basis points. Other changes in margin performance during the quarter included a 20 basis point increase from recycled commodity prices and a 20 basis point increase from net fuel. This was partially offset by a 30 basis point decrease from acquisitions.

第一季公司調整後 EBITDA 利潤率總額擴大了 120 個基點，達到 30.2%，這是由於基礎業務利潤率擴大了 110 個基點。本季利潤率表現的其他變化包括回收商品價格上漲 20 個基點和淨燃料價格上漲 20 個基點。這被收購下降 30 個基點部分抵銷。

Adjusted free cash flow was $535 million in the first quarter. Free cash flow conversion was 45.9%. Total debt was $13 billion and total liquidity was $2.8 billion. Our leverage ratio at the end of the quarter was approximately 2.8x. With respect to taxes, our combined tax rate and impact from equity investments and renewable energy resulted in an equivalent tax impact of 25.4% during the quarter, which was in line with our expectations. We also received a $12 million state grant associated with renewable energy investment. This benefit was recorded in other income and added $0.03 of EPS. This did not impact EBITDA or EBITDA margin during the quarter. With that, operator, I would like to open the call to questions.

第一季調整後自由現金流為 5.35 億美元。自由現金流轉換率為45.9%。債務總額為 130 億美元，流動資金總額為 28 億美元。本季末我們的槓桿率約為 2.8 倍。在稅收方面，我們的綜合稅率以及股權投資和再生能源的影響導致本季的稅收影響達到 25.4%，符合我們的預期。我們也獲得了與再生能源投資相關的 1,200 萬美元國家補助金。該收益記錄在其他收入中，並增加了 0.03 美元的每股盈餘。這並未影響本季的 EBITDA 或 EBITDA 利潤率。接線員，我想開始提問。

(Operator Instructions) Your first question comes from Jerry Revich with Goldman Sachs.

（操作員說明）您的第一個問題來自高盛的 Jerry Revich。

This is Adam on for Jerry today. So your first polymer center recently opened. Just wondering how that plan is tracking versus your initial expectations. Any surprises there?

今天是亞當替傑瑞發言。你們的第一個聚合物中心最近開幕了。只是想知道該計劃與您最初的期望相比進展如何。有什麼驚喜嗎？

No. It probably opened a month later than we thought all around related permitting and infrastructure issues. The core operations are actually exceeding our expectation. Shipping to customers, they think it is some of the, if not the, cleanest recycled PET flake in the world. So the facilities, the team are executing really, really well. And again, happy with our equipment providers, happy with everything, and we're up and running in Indianapolis, and we're probably -- should shortly announce our third location on the East Coast.

不。核心業務實際上超出了我們的預期。在運送給客戶時，他們認為這是世界上最乾淨的再生 PET 薄片（如果不是的話）。所以設施、團隊都執行得非常非常好。再說一遍，對我們的設備供應商感到滿意，對一切感到滿意，我們在印第安納波利斯啟動並運行，我們可能 - 應該很快宣布我們在東海岸的第三個地點。

Terrific. And then shifting to US Ecology. Just wondering if you can update us on how you're thinking about what level of margin upside is feasible for that business once you fully integrated the systems, just based on your experience on optimizing route profitability and pricing for your base business. What's the level of margin upside potential there?

了不起。然後轉向美國生態學。只是想知道，您是否可以根據您在優化基礎業務的航線盈利能力和定價方面的經驗，向我們介紹一下，一旦您完全集成系統，您如何考慮該業務的利潤上升水平是可行的。那裡的利潤率上升潛力有多大？

Yes. We're targeting a 25% EBITDA margin there in the midterm and it's really going to be a series of levers, right? We're going to think about customer mix and making sure that we have customers that are willing to pay. We'll obviously think about pricing for the value we deliver on that. We'll drive additional revenue through cross-sell, which we've talked about. And the IT investments help there. They also help us manage the middle, just better labor utilization, more efficiency in terms of disposal, optimizing disposal assets and getting the material into the right spot. And then as we grow, we'll certainly get more leverage on our SG&A. So we've got a series of levers that we think get us to 25% in the midterm.

是的。我們的目標是在中期實現 25% 的 EBITDA 利潤率，這確實需要一系列槓桿，對吧？我們將考慮客戶組合併確保我們擁有願意付費的客戶。顯然，我們會考慮我們所提供的價值的定價。我們將透過我們已經討論過的交叉銷售來增加額外收入。 IT 投資在這方面有所幫助。它們還幫助我們管理中間環節，更好地利用勞動力、提高處置效率、優化處置資產並將材料放到正確的位置。然後，隨著我們的成長，我們肯定會在銷售、管理及行政費用上獲得更多的影響力。所以我們有一系列的槓桿，我們認為這些槓桿可以讓我們在中期達到 25%。

The next question is from Toni Kaplan with Morgan Stanley.

下一個問題來自摩根士丹利的東尼卡普蘭。

You mentioned the weakness in volume related to weather. I was hoping that you could give the weather impact in the quarter?

您提到了與天氣相關的成交量疲軟。我希望您能給出本季天氣的影響嗎？

We think, overall, that was about a 50 basis point drag on total volume performance. So you can think about that being down circa 1%. Half of which was weather-related and then just half more in those cyclical volumes as we talked about, construction activity and the like.

我們認為，總體而言，這對總成交量表現造成了約 50 個基點的拖累。所以你可以認為下降了大約 1%。其中一半與天氣有關，另外一半與我們談到的週期性數量、建築活動等有關。

Yes. Okay. That makes a lot of sense. And then just wanted to ask about pricing. Strong core price again this quarter, maybe a little bit above expectation. I think you mentioned it exceeded your expectation as well. I think last quarter, you talked about trajectory of 1Q being the high point, 4Q likely being the low end. Is that still your expectation? And has anything in the inflationary backdrop changed your view on how price plays out or how good price was in the first quarter?

是的。好的。這很有意義。然後只是想問價格。本季核心價格再次走強，可能略高於預期。我想你提到的這也超出了你的預期。我認為上個季度，您談到第一季的軌跡是高點，第四季可能是低端。這還是你的期望嗎？通膨背景下的任何事情是否改變了您對價格走勢或第一季價格有多好的看法？

Yes, I think it modestly exceeded our expectations. And I think that cadence we laid out is still right as we see the -- it will sort of come down. Could we extend that a little higher as the interest rates remain high and I think inflation has been a little stickier than people expected? Yes, I think there's certainly potential for that.

是的，我認為它稍微超出了我們的預期。我認為我們制定的節奏仍然是正確的，正如我們所看到的那樣——它會下降。由於利率仍然很高，而且我認為通膨比人們預期的要黏一些，我們能否將這一期限延長一點？是的，我認為這確實有潛力。

The next question is from Michael Hoffman with Stifel.

下一個問題是 Michael Hoffman 和 Stifel 提出的。

So I guess, one on ES would be the cross-sell. When you bought it, you didn't expect -- you didn't put that into the plan, but it's been proving to be a positive contributor. How do we track against where you -- we are now in that cross-sell? What's that incremental total dollar we picked up?

所以我想，ES 上的一個就是交叉銷售。當你購買它時，你沒有想到 - 你沒有將其納入計劃，但事實證明它是一個積極的貢獻者。我們如何追蹤您—我們現在在交叉銷售中的情況？我們獲得的增量總金額是多少？

Yes. I think we're making great progress on that, Michael. Listen, that ES was a little softer in the quarter where certainly, weather impacted them. And they were also coming off a pretty tough comp because we had a great first quarter last year. But that pipeline remains strong. I think we stopped talking about the pipeline at $150 million. That pipeline has grown from there. Now that pipeline is over a couple of years. It builds out as these opportunities develop. Either the work initiates from a recurring generator or sometimes, it's a project that has a scheduled start that has pushed out a few months.

是的。我認為我們在這方面取得了很大進展，邁克爾。聽著，ES 在本季的表現有些疲軟，當然，天氣對他們產生了影響。他們的表現也相當艱難，因為我們去年第一季表現出色。但這條管道仍然強勁。我想我們已經不再談論 1.5 億美元的管道了。該管道從此開始發展。現在這條管道已經過了幾年。隨著這些機會的發展，它也會不斷發展。工作要么從循環生成器啟動，要么有時是一個計劃啟動的項目，但已經推遲了幾個月。

So we feel really good about that. And frankly, there's another wave of upside as we get integrated on the IT side and then we get our sales organization kind of optimized against those customer lists and that information. We think there's strong pull-through. I think what's been undeniable for us is that customers want and desire a single-source solution. And this integrated offering is something that we could sell very profitably in the marketplace.

所以我們對此感覺非常好。坦白說，當我們在 IT 方面進行整合時，還會出現另一波上升趨勢，然後我們的銷售組織會針對這些客戶名單和資訊進行最佳化。我們認為有很強的牽引力。我認為對我們來說不可否認的是客戶需要並且渴望單一來源的解決方案。我們可以在市場上銷售這種整合產品並獲得非常高的利潤。

Okay. And then switching gears back to the solid waste business. So that opportunity to capture surcharges and overages through the digital platform, what's the point of conversion of that into a permanent revenue? So you got the -- eventually, a salesperson shows up and says, hey, your container is always overflowing, and you convert it into a permanent upgrade? What's that look like? How do we think about that?

好的。然後又轉回固體廢棄物業務。那麼，透過數位平台獲取附加費和超額的機會，將其轉化為永久收入有何意義呢？所以你得到了 - 最終，一名銷售人員出現並說，嘿，你的容器總是溢出，你將其轉換為永久升級？那是什麼樣子的？我們對此有何看法？

Michael, to your point, the obvious solution to that is to sit there and either get an increased level of service, whether it be the size of the container or just the number of times, the frequency that we're providing that service. But when you take a look just at those incremental revenues, they've been fairly sticky, meaning even though we've had these, because they're not consistent, they tend to be somewhat episodic as well. So again, when we're providing the service based on a certain amount of volume within that container, if there's those overages, we're going to charge for that and same with the contamination. Ultimately, could that change behavior over time? Yes, and we would want that. And at which point then, that probably just results in increased frequency, which positively impacts the top line as well.

邁克爾，就您的觀點而言，顯而易見的解決方案是坐在那裡，要么獲得更高水平的服務，無論是容器的大小，還是只是我們提供該服務的次數和頻率。但是，當你看一下這些增量收入時，它們相當黏性，這意味著即使我們已經有了這些收入，因為它們不一致，它們也往往是偶發的。再說一次，當我們根據容器內一定的體積提供服務時，如果出現超量，我們將收取費用，污染情況也是如此。最終，隨著時間的推移，這會改變行為嗎？是的，我們希望如此。到那時，這可能只會導致頻率增加，這也會對營收產生正面影響。

And that is the protocol, right? If somebody's got multiple overages, right, the protocol is it's pushed through Salesforce and the salesperson calls on that customer says, hey, it's time to go from twice a week to 3 times a week or a larger container or whatever the right solution is. To Del's point, I think it's still early days, and we've seen it's across a variety of customers, right? It's not like we're getting all this from the same small set of customers. It's kind of one-sie, two-sie on that front, so it's a little early to tell in terms of what that conversion looks like in the kind of permanent upgrades.

這就是協議，對吧？如果有人多次超額，對吧，協議是透過Salesforce 推送，銷售人員打電話給該客戶說，嘿，是時候從每週兩次改為每週3 次，或者使用更大的容器或任何正確的解決方案。就德爾的觀點而言，我認為現在還為時過早，我們已經看到它適用於各種客戶，對吧？我們並不是從同一小群客戶那裡獲得所有這些。在這方面，這是一種「一」、「二」的情況，因此現在就永久性升級的轉換情況進行判斷還為時過早。

The next question comes from Bryan Burgmeier with Citi.

下一個問題來自花旗銀行的 Bryan Burgmeier。

In the prepared remarks, you touched on a revenue opportunity in recycling. I guess, just what's kind of driving the biggest tailwinds there right now? Is it capturing maybe different materials such as plastic? Are you increasing the throughput speed? And is there any opportunity maybe on the labor side as well?

在準備好的發言中，您談到了回收方面的收入機會。我想，現在是什麼推動了最大的推動力呢？它是否捕獲不同的材料，例如塑膠？您是否正在提高吞吐速度？勞工方面也有機會嗎？

Well, I think what we talked about, Bryan, on the recycling side a little bit, was on those fees. We were just talking about more on the contamination side. So again, when you take a look at how we're deploying AI into the business, we're doing it on overages, right, on the traditional waste. And then on the recycling, it's more about contamination. So that's what we're talking about there.

布萊恩，我想我們在回收方面討論的是這些費用。我們只是在談論污染方面的更多內容。所以，當你看看我們如何將人工智慧部署到業務中時，你會發現我們是在超額的情況下進行的，對吧，在傳統的浪費上。然後在回收方面，更多的是關於污染。這就是我們正在討論的內容。

When you just talk about where you saw the uplift in recycling, that was really a function of just the recycled commodity prices and the lift in the overall basket. So our overall basket was $153 per ton in the first quarter. We exited the year at around $130 so that's that uplift, which is really what's driving that increase in recycled commodities.

當你談論回收方面的成長時，這實際上是回收商品價格和整個籃子的成長的函數。因此，第一季我們的整體籃子價格為每噸 153 美元。今年結束時價格約為 130 美元，這就是上漲，這確實是推動回收商品增加的原因。

Got it. Got it. That makes sense. Yes, I was inquiring about the $60 million opportunity there. And then maybe just on solid waste, like really nice margin performance in 1Q. What are your expectations for cost now versus the start of the year? Based on the public data, maybe wages are cooling a little bit. I'm not sure if that's really accurate for you, guys. And any view on kind of M&R costs? I'll turn it over.

知道了。知道了。這就說得通了。是的，我正在詢問那裡 6000 萬美元的機會。然後也許只是固體廢棄物，例如第一季非常好的利潤率表現。與年初相比，您對現在的成本有何預期？從公開數據來看，薪資可能會下降。我不確定這對你們來說是否真的準確，夥計們。對 M&R 成本有何看法？我會把它翻過來。

Sure. Yes. I think we're -- the team is executing well in the middle. The outlook is favorable in terms of cost. But on the wage side, that cake is already baked. We give our colleagues all their annual increase at the end of February, right? And even if inflation cools, we don't call them up in September and say, we want some of that back. So that forms -- it's more of a step function in terms of cost. Same thing on third-party transportation. I'd say the most dynamic parts of the cost structure are landfill operating and maintenance. And just on maintenance, again, team is executing well. We're taking more truck deliveries, and that will certainly have a positive aspect as we park some older trucks and replace those with newer trucks. The maintenance cost is obviously substantially lower on those newer trucks, so that should provide a nice benefit toward the second half of the year.

當然。是的。我認為我們的團隊在中間執行得很好。就成本而言，前景看好。但在薪水方面，蛋糕已經烤好了。我們二月底就把每年的加薪都給同事了吧？即使通膨降溫，我們也不會在 9 月打電話給他們說，我們希望收回一些通膨。這樣就形成了——就成本而言，它更像是一個階躍函數。第三方運輸也是如此。我想說成本結構中最具活力的部分是垃圾掩埋場的運作和維護。就維護而言，團隊執行得很好。我們正在接受更多的卡車交付，這肯定會帶來積極的影響，因為我們停放了一些舊卡車並用新卡車替換它們。這些較新卡車的維護成本顯然要低得多，因此這應該會在今年下半年帶來不錯的效益。

The next question comes from Noah Kaye with Oppenheimer.

下一個問題來自諾亞·凱和奧本海默。

Really nice OpEx leverage here as others have alluded to. And at this point, 30 bps margin expansion at midpoint for the full year looks pretty conservative to us, at least in light of 1Q results and the trends. So can you kind of comment on margin expectations and at least how we should be thinking about the typical step-up in margins as we get into the stronger seasonal quarters?

正如其他人所提到的，這裡的營運支出槓桿非常好。目前，全年中點 30 個基點的利潤率擴張對我們來說顯得相當保守，至少從第一季的業績和趨勢來看是如此。那麼，您能否對利潤率預期發表評論，至少當我們進入強勁的季節性季度時，我們應該如何考慮利潤率的典型提升？

Yes. We certainly feel comfortable with how the team is executing in our plan for the rest of the year on that front. And look, for the overall environment, keep in mind, we're in a pretty much a zero-growth volume environment on recycling and waste over the last couple of years, if you think about housing starts and the correlation of that to volume on that front. And certain parts of the economy are a little slower like construction for sure, with interest rates remaining elevated, both commercial and residential construction has been softer on that front.

是的。我們當然對團隊在今年剩餘時間內在這方面執行計劃的方式感到滿意。就整體環境而言，請記住，在過去幾年中，我們處於回收和廢物量幾乎為零增長的環境中，如果您考慮新屋開工以及其與數量的相關性那個前面。經濟的某些部分肯定會像建築業一樣放緩，由於利率仍然很高，商業和住宅建設在這方面都比較疲軟。

Manufacturing has certainly been soft as well. Now there's some certainly positive signs that, that activity is picking up at the plant level, which is encouraging. So we remain pretty confident in our plan, but also mindful of the external environment. Election years, sometimes, special waste volume can push out a little bit on that front. So we'll update you more as we get into the seasonal upswing here after Q2.

製造業當然也很疲軟。現在有一些肯定的積極跡象表明，工廠層面的活動正在回升，這是令人鼓舞的。因此，我們對我們的計劃仍然充滿信心，但也注意到外部環境。有時，選舉年，特殊的廢棄物量可能會在這方面造成一些影響。因此，當我們在第二季之後進入季節性上漲時，我們將向您提供更多最新資訊。

Absolutely. I think the spirit of the question is that despite volumes being down more than expected, I mean, margin performance in 1Q was definitely stronger, I think, perhaps, maybe even in your internal forecast, certainly, than the Street. Is there any reason why some of the underlying tailwinds to margins, excluding volumes, shouldn't continue into future quarters? So as you said, you have pretty good visibility on things like labor costs. Is there anything on the cost side of the equation that should give us pause?

絕對地。我認為問題的實質是，儘管成交量下降幅度超過預期，但我的意思是，第一季的利潤率表現肯定比華爾街更強，我認為，甚至在您的內部預測中，當然也可能比華爾街更強。是否有任何理由解釋為什麼一些潛在的利潤率（不包括銷售）不應持續到未來幾季？正如您所說，您對勞動成本等問題有很好的了解。成本方面有什麼值得我們猶豫的嗎？

No, it's -- to your question, right, we got off to a nice strong start, but it's the first quarter, right? So again, we like to see that continue, that seasonal uptick. We've got some strength right now in recycled commodity prices, but we're 1/4 of the way through. So to your observation, we've gotten us to a really good start to the year, which would suggest there's some modest upside. But we've got to sit there and see it play through the remainder of the year. But we're very pleased with our results in the first quarter.

不，對於你的問題，我們有一個好的開局，但這是第一季度，對吧？因此，我們希望看到這種情況持續下去，季節性上升。目前，我們在回收商品價格方面有一定的實力，但我們已經完成了 1/4。因此，根據您的觀察，我們今年有了一個非常好的開局，這表明存在一些適度的上升空間。但我們必須坐在那裡，看看它在今年剩餘時間的表現。但我們對第一季的業績非常滿意。

Yes. Very fair. And then just a quick housekeeping item. The release and your comments mentioned $41 million spend on acquisitions in the period. The line item in the cash flow statement, obviously, well north of that. And I assume that delta is primarily related to the sustainability investments, maybe some renewable energy projects. Can you maybe just help us with that bridge and how to think about full year spending, even excluding the M&A that you hope to do in the balance of the year?

是的。很公平。然後只是一個快速的家務用品。新聞稿和您的評論提到了這段期間的收購支出為 4,100 萬美元。顯然，現金流量表中的項目遠遠超出了該項目。我認為德爾塔主要與永續發展投資有關，也許是一些再生能源項目。您能否幫助我們搭建這座橋樑，以及如何考慮全年支出，甚至排除您希望在今年剩餘時間內進行的併購？

Yes. Most of that is the investments that we're making in those JVs. So we would expect between what we're doing on the landfill gas to energy as well as the investments in Blue Polymers to be about $230 million of investments in those JVs in '24.

是的。其中大部分是我們對這些合資企業的投資。因此，我們預計 24 年我們在將垃圾掩埋氣體轉化為能源方面所做的工作以及對 Blue Polymers 的投資將達到約 2.3 億美元。

Okay, $230 million. And so it sounds like you spent a good chunk of that then already, just doing some quick math here. So that tapers off as we move to the back half?

好吧，2.3 億美元。聽起來你已經花了很大一部分時間，只是在這裡做一些快速的數學計算。那麼當我們進入後半部時，這種情況會逐漸減弱嗎？

It does. Yes.

確實如此。是的。

The next question comes from David Manthey with Baird.

下一個問題來自 David Manthey 和 Baird。

Could you provide us with some details on the timing, size and type of acquisition that you did in environmental solutions? It looks like volume growth was about 3.2% this quarter. I'm wondering how much of that was the acquisition.

您能否向我們提供一些有關您在環境解決方案領域進行的收購的時間、規模和類型的詳細資訊？本季銷量成長約 3.2%。我想知道其中有多少是收購的。

Well, the acquisition that we completed was in the fourth quarter of '23. So most of what you're seeing there on the environmental solutions side is the rollover impact of a company that we bought out on the West Coast. And we talked about that in our fourth quarter release. But when you think about the total rollover impact right now of acquisitions, so that which closed in '23, together with the deals that closed in the first quarter, it's about 220 basis points of rollover impact to revenue in '24.

嗯，我們完成的收購是在 23 年第四季。因此，您在環境解決方案方面看到的大部分內容都是我們在西海岸收購的一家公司的滾動影響。我們在第四季度的版本中討論了這一點。但是，當你考慮目前收購的總展期影響時，也就是 23 年完成的收購，加上第一季完成的交易，24 年對營收的展期影響約為 220 個基點。

Okay. And this enterprise asset management initiative you have, you talked about maintenance productivity and warranty recovery. Could you explain to me what that means and maybe size the opportunity there?

好的。在您的企業資產管理計劃中，您談到了維護生產力和保固恢復。您能否向我解釋一下這意味著什麼，並評估其中的機會？

Yes. Well, now you've got a system which is going to be seamlessly integrated. So when you think about the platform that we put on both the financial and the procurement side, now being seamlessly integrated with an asset management system, so our ability to track parts and to be able to sit there and make sure that we're getting warranty recovery on every single part that we take off a truck, greatly enhanced. Right now, it's a very manual exercise in order to sit there and to get those warranty dollars as well as just greater efficiency for the technician.

是的。好吧，現在您已經有了一個將無縫整合的系統。因此，當你想到我們在財務和採購方面放置的平台時，現在與資產管理系統無縫集成，因此我們有能力跟踪零件並能夠坐在那裡確保我們得到我們從卡車上卸下的每個零件的保固恢復都大大增強。目前，這是一項非常手動的工作，以便坐在那裡獲得保固資金以及提高技術人員的效率。

So what that means is with that extra time and that capacity that's created, we can in-source more of those repairs. So instead of outsourcing at a multiple, in order to sit there and have those repairs done with a third-party shop, we can do those in-house.

因此，這意味著利用額外的時間和所創造的能力，我們可以內包更多的維修工作。因此，我們可以在內部進行維修，而不是在多家公司進行外包，而是坐在第三方商店進行維修。

The next question comes from Sabahat Khan with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Sabahat Khan。

Great. Just maybe if we could get a little bit of color on sort of the volume cadence you expect for the rest of the year. A couple of your peers have called out bit of a softer Q2 there. Maybe just your expectation on cadence and if that's changed versus what you might have expected at Q4 reporting a bit earlier.

偉大的。也許我們可以對今年剩餘時間的音量節奏有一些了解。你的一些同行已經呼籲第二季的表現會更加疲軟。也許只是您對節奏的期望，以及與您早些時候在第四季度報告中的預期相比是否有所改變。

Yes, we would expect obviously a sequential improvement from what we saw in Q1 just because we don't -- we're not expecting the weather impact again. Q2, yes, we would expect it to be a little bit negative, given what we're seeing with some of the construction-related activity. We're not seeing a rebound there yet. As we get into the second half of the year, we start to anniversary some of those construction-related declines. So we would expect that to be flat to even potentially slightly positive.

是的，我們預計明顯會比第一季看到的情況有所改善，因為我們預計不會再次受到天氣影響。第二季度，是的，考慮到我們所看到的一些與建築相關的活動，我們預計它會有點負面。我們還沒有看到反彈。進入今年下半年，我們開始慶祝一些與建築相關的下降。因此，我們預計這一數字將持平，甚至可能略有積極。

Okay. Great. And then on the PFAS front, you guys have obviously a bit of a unique exposure with the environmental business. Maybe if you look at the puts and the takes across your entire business, obviously, it's a bit early. But just curious how you're sort of approaching that opportunity and kind of the net impact of any additional costs? Just how do you view that entire opportunity given your 2 business lines?

好的。偉大的。然後在 PFAS 方面，你們顯然對環境業務有一些獨特的了解。也許如果你看看整個業務的看跌期權和期權，顯然，現在還為時過早。但只是好奇您如何抓住這個機會以及任何額外成本的淨影響？鑑於您的兩條業務線，您如何看待整個機會？

Yes. We're -- it's a net positive for sure. We talked about kind of $70 million to $90 million last year of PFAS-related revenue. We'll have that number better this year with the pipeline that's building. So we offer a very unique set of products and services to our customers to help them remediate, all the way from the service to multiple opportunities for disposal, solid waste, landfill, obviously.

是的。我們——這肯定是一個淨正面的結果。我們談到去年 PFAS 相關收入約為 7,000 萬至 9,000 萬美元。隨著管道的建設，今年我們的數字將會更好。因此，我們為客戶提供一套非常獨特的產品和服務，幫助他們進行補救，從服務到多種處置機會，顯然是固體廢棄物、垃圾掩埋。

For low levels of PFAS [as these] landfills, deep well, and that solution is certainly resonating with our customers. But on the other side of the business, that's a multiyear opportunity that's going to play out over time. And there's -- certainly, the size and scale of that opportunity is hard to size yet because it does depend a bit on the regulatory environment. And likewise, on the waste and recycling side, there certainly could be some headwinds there if this thing is poorly executed. I think the industry is doing a good job of pushing back and making sure that we don't get penalized as being a passive receiver.

對於 PFAS 含量較低的垃圾掩埋場、深井，此解決方案肯定會引起我們客戶的共鳴。但從業務的另一面來看，這是一個多年的機會，隨著時間的推移將會發揮作用。當然，這個機會的規模和規模還很難確定，因為它確實在某種程度上取決於監管環境。同樣，在廢棄物和回收方面，如果執行不力，肯定會遇到一些阻力。我認為該行業在反擊方面做得很好，並確保我們不會因為被動接收者而受到懲罰。

And I would say, from a litigation standpoint and more broadly, as regulation increases in the industry, if you think about the last 25, 30 years, we've done a really good job of passing on that cost of regulation and not making that hurt returns. And I think over time, given the nature and complexity, it favors the larger players. So we want regulation to be thoughtful and intelligent. But we see that, again, over time, we're in that [winter] through PFAS.

我想說，從訴訟的角度來看，更廣泛地說，隨著行業監管的加強，如果你想想過去25 年、30 年，我們在轉嫁監管成本方面做得非常好，而不是讓監管成本增加。我認為隨著時間的推移，考慮到其性質和複雜性，它有利於規模較大的參與者。因此，我們希望監管是深思熟慮且明智的。但我們再次看到，隨著時間的推移，我們透過 PFAS 進入了那個[冬天]。

The next question is from Tony Bancroft with Gabelli Funds.

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

Regarding the plastics, maybe just a step up -- climbing to 30,000 feet and just sort of long-term view on it. With these -- with regulations that have been implemented on plastics like the ones that went into effect in Canada, I maybe assume as it goes to Canada or in California, so goes the rest. How do you see those maybe stricter regulations in what can be made and thrown out versus the need to be recycled and the restrictions on that? How does that impact in the long term your polymer centers? And maybe how it -- if it changes producer behavior in what they'll produce? And how does that maybe impact your long-term net return on investment for those facilities?

關於塑料，也許只是一個進步——爬到 30,000 英尺，只是從長遠角度看待它。有了這些——隨著對塑膠實施的法規，例如在加拿大生效的法規，我可能會認為，隨著加拿大或加州的實施，其他國家也將如此。您如何看待這些可能更嚴格的規定，即哪些東西可以製造、哪些可以丟棄，以及哪些東西需要回收以及對此的限制？從長遠來看，這對您的聚合物中心有何影響？也許它會如何改變生產者的生產行為？這對您對這些設施的長期淨投資回報有何影響？

Yes. Listen, consumer packaged goods companies for a long time have talked about minimum content goals. I think when the regulatory environment came online with California and that the other states have followed, that's really what's driven different activity in the marketplace. So we had pretty clear expectations for returns when we built the Las Vegas polymer center. As we always do, we're going to be good stewards of capital, and we've certainly exceeded our expectations there. And I think there's more upward opportunity as we go. We could sell out that facility 5x over.

是的。聽著，消費品公司長期以來一直在談論最低內容目標。我認為，當加州的監管環境上線並且其他州也紛紛效仿時，這確實是推動市場不同活動的原因。因此，當我們建造拉斯維加斯聚合物中心時，我們對回報有非常明確的期望。正如我們一貫所做的那樣，我們將成為良好的資本管理者，而且我們的表現肯定超出了我們的預期。我認為隨著我們的發展，還有更多的上昇機會。我們可以將該設施出售五倍以上。

And the same will be true in Indianapolis and the other centers. The market is structurally short supplied of recycled PET, and we've got the unique capability of collecting something 5 million times a day, right? And so we can be the anchor tenant of our own facility on that front. So over time, I think we'll think about innovating on collection. So how do we get more PET and more olefins into the system? And then that might spark the opportunity to create a fifth or a sixth polymer center, and we'll take that on as we go.

印第安納波利斯和其他中心也是如此。市場上再生 PET 的供應結構性短缺，而我們擁有每天收集 500 萬次東西的獨特能力，對嗎？因此，我們可以成為我們自己設施在這方面的主要租戶。所以隨著時間的推移，我認為我們會考慮在收藏方面進行創新。那我們要如何讓更多的 PET 和更多的烯烴進入系統呢？然後這可能會激發創建第五個或第六個聚合物中心的機會，我們將繼續這樣做。

The next question is from Tobey Sommer with Truist Securities.

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

A question for you on the hazardous side. How is sort of pipeline and overall demand? And do you think it's sufficient to easily absorb new incinerator capacity coming towards the end of this calendar year?

有一個關於危險方面的問題想問你。管道種類和整體需求如何？您認為這足以輕鬆吸收今年底即將到來的新焚化爐產能嗎？

Yes. Pipeline is strong. It's activity, like I said, was certainly weather-related impact in the first quarter. Pipeline is strong. We got a number of attractive things, again, both on recurring streams and some event work in the pipeline. The market is structurally short supplied on incineration. And even with the new capacity coming online, I think it's likely to be tight for the foreseeable future on that front.

是的。管道堅固。正如我所說，它的活動肯定是第一季與天氣相關的影響。管道堅固。我們再次獲得了許多有吸引力的東西，無論是在循環流還是在管道中的一些事件工作上。焚燒市場出現結構性供應短缺。即使新產能上線，我認為在可預見的未來，這方面的情況可能會很緊張。

And then you think about any kind of medium to even a bearish case on PFAS is going to push more volume in liquid side into incineration. So we see that, again, market being tight supplied for the foreseeable future.

然後你會想到任何一種中等的甚至是對 PFAS 的看跌情況都會將液體側的更多體積推入焚燒。因此，我們再次看到，在可預見的未來，市場供應緊張。

Appreciate that. And then if I could ask a question on the expense side beyond wages. In terms of hiring, training and the safety events that tend to happen more frequently with new employees, are those other elements around direct compensation also sort of seeing less growth and sort of a benefit to margins this year?

感謝。然後我是否可以問一個關於工資以外的費用方面的問題。就新員工更頻繁發生的招募、培訓和安全事件而言，今年直接薪酬的其他要素是否也出現了成長放緩，並對利潤率有所改善？

Yes. We're seeing certainly great trucking safety numbers. We talked about turnover. We talked about NPS. And listen, all these things are connected. We've done this a long time, and we know that when you are fully staffed and you've got trained and tenured drivers, they provide great customer service, right? It lowers your risk costs. Those customers are happy with the product offering, and they're willing to pay more and stay longer. So we're certainly seeing some of the benefits of a reduced turnover as well.

是的。我們確實看到了出色的卡車運輸安全數據。我們討論了營業額。我們討論了 NPS。聽著，所有這些事情都是相互關聯的。我們已經這樣做了很長時間，我們知道，當您配備充足的人員並且擁有經過培訓和終身任職的司機時，他們會提供出色的客戶服務，對吧？它降低了您的風險成本。這些客戶對所提供的產品感到滿意，並且願意支付更多費用並停留更長時間。因此，我們當然也看到了營業額減少的一些好處。

The next question is from James Schumm with TD Cowen.

下一個問題是 James Schumm 和 TD Cowen 提出的。

Just curious if you guys are seeing any trends in the residential business with respect to competition or pricing?

只是好奇你們是否看到住宅業務在競爭或定價方面有任何趨勢？

Yes. Listen, I think that market, we've talked about this at length that's -- over the last decade as the business has improved and transformed in lots of ways, that's one of the parts of the business that hasn't made as much progress. And we have a very strong belief that we need to raise returns in that part of the business. And on balance, I'd say, competitive conduct is improving in terms of people getting a fair return for the work they do. It still has room to improve. And we're going to be disciplined in that space, and we're not going to do work for low returns. And if a city wants a different provider who might be cheaper but doesn't provide as much benefit, so be it. We're going to put our -- allocate our capital to places where we get a very attractive return.

是的。聽著，我認為這個市場，我們已經詳細討論過這個問題——在過去的十年裡，隨著業務在許多方面得到改善和轉型，這是業務中沒有取得太大進展的部分之一。我們堅信我們需要提高這部分業務的回報。總的來說，我想說，競爭行為正在改善，人們的工作得到了公平的回報。它仍有改進的空間。我們將在這個領域遵守紀律，我們不會做低迴報的工作。如果一個城市想要一個可能更便宜但不能提供那麼多好處的不同提供者，那就這樣吧。我們將把我們的資金分配到那些能獲得非常有吸引力的回報的地方。

Got it. And then I'm assuming turnover is trending lower, but did you give any specifics there? And what's your target for turnover, if you have one? And apologies if I missed it.

知道了。然後我假設營業額呈下降趨勢，但您有提供任何具體細節嗎？如果您有營業額目標，那麼您的營業額目標是多少？如果我錯過了，我深表歉意。

No problem. We haven't talked about it probably. It's sub-20%. And there's a seasonal curve to turnover, obviously. Again, it goes up in Q2 and Q3, just like volumes do, and comes down in Q4 and Q1. Listen, running the business sub-20%, right, this gets very attractive in terms of all the operating metrics I talked about earlier, including the financial performance of the business.

沒問題。我們可能還沒有討論過這個問題。低於20%。顯然，營業額有季節性曲線。同樣，它在第二季度和第三季度上升，就像銷量一樣，在第四季度和第一季下降。聽著，營運低於 20% 的業務，對吧，就我之前談到的所有營運指標（包括企業的財務績效）而言，這非常有吸引力。

The next question is from Stephanie Moore with Jefferies.

下一個問題來自傑弗里斯的史蒂芬妮摩爾。

This is Harold Antor on for Stephanie Moore. I guess just on the M&A side, do you expect this year to be above average M&A? We've heard some of your other competitors say, M&A this year may be a little bit more active. And I guess in terms of your verticals, which verticals would you look to see -- would you look to make the biggest gains in M&A?

我是哈羅德·安托 (Harold Antor) 為 Stephanie Moore 配音。我想就併購而言，您預計今年的併購數量會高於平均嗎？我們聽說你們的其他一些競爭對手說，今年的併購可能會更活躍一些。我想就您的垂直行業而言，您希望看到哪些垂直行業 - 您希望在併購中獲得最大收益嗎？

Listen, we had a really outsized -- we're coming off $5.5 billion of M&A spend over the last 3 years. There's also -- there's always some episodic nature to that. We closed 2 really big transactions last year in the fourth quarter. And I think last year, there was a $1.8 billion spend. $1.4 billion of it was in recycling and waste, so there's a natural ebb and flow of just when those deals close. And we don't time any of those things around a quarter or a year, right? We do that when the seller is ready to sell on that front. The pipeline remains strong in recycling and waste and environmental solutions.

聽著，我們在過去 3 年花了 55 億美元的併購支出，規模非常大。還有——這總是有一些偶發性的。去年第四季我們完成了兩筆非常大的交易。我認為去年的支出為 18 億美元。其中 14 億美元用於回收和廢物處理，因此當這些交易結束時，就會出現自然的潮起潮落。我們不會將這些事情的時間安排在一個季度或一年左右，對嗎？當賣家準備好在這方面出售時，我們就會這樣做。該管道在回收、廢物和環境解決方案方面仍然保持強勁。

The only place, I'd say, we're slightly self-constrained is on the environmental solutions field services side of the business only because we're doing so much IT integration work that we're letting that team get focused there. And again, the pipeline is certainly building, and we could close more opportunities right now. We're pausing until 2025 on that, when we have a really solid foundation to integrate companies into because that's when we think we maximize the synergies of those acquisitions.

我想說，我們唯一有點自我約束的地方是業務的環境解決方案現場服務方面，只是因為我們做了太多的 IT 整合工作，我們讓團隊專注於此。再說一次，管道肯定正在建設中，我們現在可以關閉更多機會。我們將暫停這項計劃，直到 2025 年，屆時我們將擁有真正堅實的基礎來整合公司，因為那時我們認為我們可以最大限度地發揮這些收購的協同效應。

And I believe that you said recycled commodities are trending at $160 per ton. Is that what you're baking in for 2Q? And if not, I guess, what are you baking in there? And I guess one housekeeping is, what is internal inflation running right now?

我相信你說過回收商品的趨勢是每噸 160 美元。這就是你為第二季準備的嗎？如果沒有，我猜你在裡面烤什麼？我想其中一個重要問題是，目前的內部通膨情況如何？

Yes. I mean right now, we're just pegging to what we see, which is running right around that $160 per ton. But back to my earlier comment, we want to see that stay for a longer period of time before we sit there and say that, that's where it's going to be for the remainder of the year.

是的。我的意思是，現在我們只是盯住我們所看到的，即每噸 160 美元左右。但回到我之前的評論，我們希望看到這種情況持續更長時間，然後我們坐在那裡說，這就是今年剩餘時間的情況。

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

下一個問題來自美國銀行的 Mike Feniger。

Just a quick one, I apologize if you already addressed it. But I think EBITDA was a little bit down in environmental solutions or environmental services. Margin was down a little bit. You might have addressed it earlier, but apologies if there was something you would want to call out of why that happened and how we kind of think about how that plays through the full year.

只是簡單地說一下，如果您已經解決了這個問題，我深表歉意。但我認為環境解決方案或環境服務的 EBITDA 略有下降。利潤率略有下降。您可能已經在早些時候解決過這個問題，但如果您想指出發生這種情況的原因以及我們如何看待全年的情況，我們深表歉意。

Sure. Yes. No, most of that is the acquisition we did in the fourth quarter, ACT. And as you know, when we do acquisitions, we always invest heavily in Q1 -- or in the first year rather, the pro forma, to integrate on that front. So that's what's the drag on that. But again, our margin outlook for ES is certainly positive for the year.

當然。是的。不，其中大部分是我們在第四季度進行的收購，ACT。如您所知，當我們進行收購時，我們總是在第一季或在第一年進行大量投資，以便在這方面進行整合。這就是拖累的原因。但同樣，我們對 ES 今年的利潤率前景肯定是樂觀的。

Yes. And we would expect that to abate, that margin headwind on the acquisition, and we ultimately expect to see margin expansion in that business on a full year basis.

是的。我們預期收購帶來的利潤率阻力將會減弱，我們最終預期該業務的利潤率將在全年擴張。

And would it be probably above what you would expect for the solid waste business?

它可能會高於您對固體廢物業務的預期嗎？

Well, look, solid waste ran at 120 basis points in our first quarter. As we say again, we talked about that cadence on environmental solutions moving in that 75 to 100 basis points per year, right? And we see that on a sustained basis in the medium term until we hit that medium-term target of circa 25%. So I think you can think of it in that ZIP code.

好吧，看，我們第一季的固體廢棄物成長了 120 個基點。正如我們再說一遍，我們談到環境解決方案的節奏每年以 75 到 100 個基點的速度變化，對吧？我們認為這種情況在中期會持續下去，直到我們達到約 25% 的中期目標。所以我想你可以在那個郵遞區號中想到它。

And lastly, guys, just to wrap up, Brian, obviously, there's a lot of focus on CPI, either inflation staying sticky, rolling over, moderating. Can you just remind us when we think of CPI, there's obviously the headline CPI. There's what you guys have kind of converted over time. Can you just remind us where we are in that process? That would be helpful.

最後，夥計們，布萊恩，顯然，人們非常關注 CPI，要么通膨保持粘性，要么回滾，要么放緩。您能否提醒我們，當我們想到 CPI 時，顯然是標題 CPI。這就是你們隨著時間的推移而發生的轉變。您能提醒我們目前處於這個過程中的哪個階段嗎？那會有幫助的。

Yes. So if you just take a look, again, if you look at our entire revenue stream, about 45% of our revenue has some sort of contractual pricing restriction, 55% in the open market. So of that 45% that has that contractual pricing mechanism, 23% is directly linked to CPI, headline CPI. 27% are alternative indices like water, sewer trash, garbage trash. And then the remaining 50% are either a fixed rate increase, some sort of rate review, things of that nature. So we've continued to move, right, the book away from headline CPI to alternative indices, where now we have more on alternative indices than we do on headline.

是的。因此，如果你再看一下，如果你看一下我們的整個收入流，我們大約 45% 的收入受到某種合約定價限制，55% 來自公開市場。因此，在擁有合約定價機制的 45% 中，23% 與 CPI（總體 CPI）直接掛鉤。 27% 是替代指數，如水、下水道垃圾、垃圾垃圾。然後剩下的 50% 要么是固定利率上漲，要么是某種利率審查，諸如此類的事情。因此，我們繼續將這本書從標題消費者物價指數轉向替代指數，現在我們對替代指數的了解比標題上的更多。

The next question is a follow-up from Michael Hoffman with Stifel.

下一個問題是 Michael Hoffman 和 Stifel 的後續問題。

I just wanted to play a little cleanup. So one, to roll off this temporary container business, is it not correct that you would park equipment pretty quickly, reposition drivers, raise price? So while this may show up as a volume calculation, it's not that big of an impact to profitability because you can pivot so quickly?

我只是想玩一點清理工作。那麼一，為了開展臨時貨櫃業務，您會很快停放設備，重新安置司機，提高價格，這不是正確的嗎？因此，雖然這可能會顯示為成交量計算，但它對盈利能力的影響並不大，因為您可以如此快速地轉變？

Yes, certainly, Michael. I mean, we're dynamic in that in the market. And if you look at the quarter, volume was down 10.8%, but price was up 7.1%. And I just think that speaks to the strength of the execution, frankly, that strength of the industry, right, in an environment where volume is declining. If you go back a decade or 2, you might see behavior change and pricing be flat or even pricing go negative. And I think people understand the value of the products and services they're delivering. And the ability to flex and scale in that business is quicker than almost any and certainly, our team has done a great job of that.

是的，當然，邁克爾。我的意思是，我們在市場上充滿活力。如果你看一下這個季度，銷量下降了 10.8%，但價格上漲了 7.1%。我只是認為這說明了執行力的強弱，坦白說，就是在銷售下降的環境下產業的實力。如果你回到十年或兩年前，你可能會發現行為發生變化，定價持平，甚至定價為負數。我認為人們了解他們所提供的產品和服務的價值。業務的靈活性和擴展能力比幾乎任何業務都要快，當然，我們的團隊在這方面做得很好。

And then the other would be -- well, the incineration comment, I concur with. This will remain tight for a while. US Ecology was predominantly an inorganic chemistry play on the disposal side and the incineration world is predominantly organic, so it's less impactful to you anyway. It's not that you don't have any organics, but you're much more of an inorganic play.

然後另一個就是——嗯，焚燒評論，我同意。這種情況將持續一段時間。美國生態學主要是處置方面的無機化學遊戲，而焚燒世界主要是有機的，所以無論如何它對你的影響都較小。這並不是說你沒有任何有機物，而是你更像是無機物。

Historically, that was true, Michael. But as we provide, again, a broader set of products and services, we certainly expanded the offering, right? And we're a significant player in that place, in that space in terms of liquids because we're going to recurring revenue generators and handling 5, 6, 7, 8, 10 products in their facilities. And it can certainly be on the organic and inorganic side.

從歷史上看，這是真的，邁克爾。但當我們再次提供更廣泛的產品和服務時，我們當然擴大了產品範圍，對嗎？就液體而言，我們是那個地方、那個領域的重要參與者，因為我們將產生經常性收入，並在他們的設施中處理 5、6、7、8、10 種產品。它當然可以是有機和無機方面的。

Right. Okay. But the disposal -- landfill disposal side is still predominantly in inorganic. So this is the fuel blending and liquids side is getting you into the organics.

正確的。好的。但處置－掩埋處置方面仍以無機物為主。所以這是燃料混合和液體方面讓你進入有機物。

Correct.

正確的。

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

謝謝。此時，似乎沒有其他問題了。范德阿克先生，我會將電話轉回給您進行結束語。

Thank you, MJ. I would like to thank the entire Republic Services team for their efforts and commitment to driving lasting value for all of our stakeholders. I'd also like to make a special acknowledgment to Michael Hoffman, a senior statesmen on the call. He's been with the industry for decades. And as he's announced, he's starting a new chapter, certainly supporting the industry in a different capacity. But over the last number of decades, he's certainly seen a lot of transformation in the industry and has handled this environment and this community with a lot of excellence and professionalism. So congratulations, Michael, in your next chapter. Have a good evening, everyone, and be safe.

謝謝你，喬丹。我要感謝整個 Republic Services 團隊為推動所有利害關係人的持久價值所做的努力和承諾。我還要特別感謝參加這次電話會議的資深政治家麥可‧霍夫曼（Michael Hoffman）。他已經在這個行業工作了幾十年。正如他所宣布的，他正在開啟新的篇章，當然會以不同的身份支持該行業。但在過去的幾十年裡，他確實見證了行業的巨大變革，並以卓越和專業的精神處理了這個環境和社區。邁克爾，恭喜你進入下一章。祝大家晚上好，注意安全。

Ladies and gentlemen, this concludes the conference call. Thank you for attending. You may now disconnect your lines.

女士們、先生們，電話會議到此結束。感謝您的出席。現在您可以斷開線路。