Stericycle Inc (SRCL) 2023 Q2 法說會逐字稿

Hello, everyone, and welcome to the Q2 2023 Stericycle Earnings Conference Call. My name is Nadia, and I'll be coordinating your call today. (Operator Instructions) I will now hand over to your host, Andrew Ellis, Vice President, Investor Relations, Enterprise Finance to begin. Andrew, please go ahead.

大家好，歡迎參加 Stericycle 2023 年第二季度收益電話會議。我叫納迪亞，今天我將協調您的電話。 （操作員指示）我現在請主持人安德魯·埃利斯（Andrew Ellis）開始發言，他是企業財務部投資者關係副總裁。安德魯，請繼續。

Good morning, and thank you for joining Stericycle's 2023 Second Quarter Earnings Call. On the call today will be Cindy Miller, our Chief Executive Officer; and Janet Zelenka, our Chief Financial Officer and Chief Information Officer. The discussion today includes forward-looking statements that involve risks and uncertainties. When we use words such as believes, expects, anticipates, estimates, may, plan, will, goal or similar expressions, we are making forward-looking statements.

早上好，感謝您參加 Stericycle 的 2023 年第二季度收益電話會議。今天的電話會議由我們的首席執行官辛迪·米勒 (Cindy Miller) 主持。以及我們的首席財務官兼首席信息官珍妮特·澤倫卡 (Janet Zelenka)。今天的討論包括涉及風險和不確定性的前瞻性陳述。當我們使用相信、期望、預期、估計、可能、計劃、意願、目標或類似表達方式時，我們正在做出前瞻性陳述。

Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of our management about future events and are, therefore, subject to risks and uncertainties. Our actual results could differ significantly from those described in such forward-looking statements. Factors that could cause our actual results to differ are discussed in the safe harbor statement in our earnings press release and in greater detail within the risk factors in our filings with the U.S. Securities and Exchange Commission.

前瞻性陳述本質上是前瞻性的，並非基於歷史事實，而是基於我們管理層對未來事件的當前預期和預測，因此存在風險和不確定性。我們的實際結果可能與此類前瞻性陳述中描述的結果存在很大差異。我們的收益新聞稿中的安全港聲明中討論了可能導致我們的實際結果出現差異的因素，並在我們向美國證券交易委員會提交的文件中的風險因素中進行了更詳細的討論。

Our past financial performance should not be considered a reliable indicator of our future performance, and investors should not use historical results to anticipate future results or trends. We disclaim any obligation to update or revise any forward-looking statements other than in accordance with legal and regulatory obligations.

我們過去的財務業績不應被視為未來業績的可靠指標，投資者不應使用歷史結果來預測未來的結果或趨勢。除根據法律和監管義務外，我們不承擔任何更新或修改任何前瞻性陳述的義務。

On the call, we will discuss non-GAAP financial measures. For additional information and reconciliation to the most comparable U.S. GAAP measures, please refer to the schedules in our earnings press release, which can be found on Stericycle's Investor Relations website at investors.stericycle.com. The prepared comments for today's call correspond to an earnings presentation, which is also available at Stericycle's Investor Relations website.

在電話會議上，我們將討論非公認會計準則財務指標。有關更多信息以及與最具可比性的美國公認會計原則 (GAAP) 衡量標準的調整，請參閱我們的收益新聞稿中的時間表，該新聞稿可在 Stericycle 的投資者關係網站 Investors.stericycle.com 上找到。今天電話會議準備的評論與收益演示相對應，該演示也可以在 Stericycle 的投資者關係網站上找到。

Throughout the call, we will reference specific slides from the presentation. This call is being recorded, and a replay will be available approximately 1 hour after the end of the conference call today until August 24, 2023. A replay of the webcast will be available on Stericycle's Investor Relations website. Time-sensitive information provided during today's call, which is occurring on July 27, 2023 may no longer be accurate at the time of a replay. Any redistribution, transmission or rebroadcast of this call in any form without the express written consent of Stericycle is prohibited. I'll now turn the call over to Cindy.

在整個通話過程中，我們將引用演示文稿中的特定幻燈片。本次電話會議正在錄音，重播將於今日電話會議結束後約 1 小時至 2023 年 8 月 24 日期間提​​供。網絡廣播的重播將在 Stericycle 的投資者關係網站上提供。今天的電話會議於 2023 年 7 月 27 日舉行，其中提供的時間敏感信息在重播時可能不再準確。未經 Stericycle 明確書面同意，禁止以任何形式重新分發、傳播或轉播本次呼籲。我現在將把電話轉給辛迪。

Thank you, Andrew. Good morning, everyone, and welcome to today's call. 4 years ago, the leadership team set this organization on a path focused on 5 key business priorities, which include: Quality of revenue; operational efficiency, modernization and innovation; ERP implementation; portfolio optimization and debt reduction and leverage improvement. These priorities have been our true North Star through unanticipated macroeconomic and pandemic-related headwinds. Today, I'm excited to share that we have achieved our targeted debt leverage ratio of below 3x, ending the second quarter at 2.7x, our lowest leverage since 2015. This is a major milestone and reflects our consistent focus on financial discipline. The strengthening of our balance sheet and debt leverage puts us in a position to optimize our debt structure and will afford us greater investment flexibility in the future.

謝謝你，安德魯。大家早上好，歡迎參加今天的電話會議。 4 年前，領導團隊讓該組織走上了一條專注於 5 個關鍵業務優先事項的道路，其中包括： 收入質量；運營效率、現代化和創新； ERP實施；投資組合優化以及債務削減和槓桿率改善。這些優先事項一直是我們應對意料之外的宏觀經濟和流行病相關逆風的真正北極星。今天，我很高興地告訴大家，我們已經實現了低於 3 倍的目標債務槓桿率，第二季度末債務槓桿率為 2.7 倍，這是我們自 2015 年以來的最低杠桿率。這是一個重要的里程碑，反映了我們對財務紀律的一貫關注。資產負債表和債務槓桿的加強使我們能夠優化債務結構，並為我們未來提供更大的投資靈活性。

This quarter, we also made important progress executing on our portfolio optimization initiative as we completed the divestiture of our operations in 4 countries: Brazil, Australia, Singapore and Korea for combined net proceeds of approximately $84 million. Brazil and Korea were regulated waste and compliance services businesses and Singapore and Australia were Secure Information Destruction businesses.

本季度，我們在執行投資組合優化計劃方面也取得了重要進展，完成了對 4 個國家/地區業務的剝離：巴西、澳大利亞、新加坡和韓國，淨收益合計約為 8,400 萬美元。巴西和韓國是受監管的廢物和合規服務業務，新加坡和澳大利亞是安全信息銷毀業務。

Additionally, earlier this week, we divested our dental recycling business in the Netherlands, and we expect to close on the sale of our Secure Information Destruction business in the United Arab Emirates in the third quarter.

此外，本週早些時候，我們剝離了荷蘭的牙科回收業務，並預計在第三季度完成阿拉伯聯合酋長國安全信息銷毀業務的出售。

Turning to our second quarter results. We delivered our 10th consecutive quarter of overall organic revenue growth, growing 2.3% with regulated waste and compliance services increasing 4.7%, partially offset by Secure Information Destruction organic revenue declining 2.1% as a result of lower indexed fuel and environmental surcharges. In North America, we are encouraged by positive trends in the market with the stabilization of hospital staffing levels and the return of elective surgeries.

轉向我們第二季度的業績。我們實現了整體有機收入連續第十個季度增長，增長了 2.3%，其中受監管的廢物和合規服務增長了 4.7%，部分被安全信息銷毀有機收入因指數燃料和環境附加費降低而下降 2.1% 所抵消。在北美，隨著醫院人員配備水平的穩定和擇期手術的恢復，市場的積極趨勢令我們感到鼓舞。

Internationally, we have not observed similar improving trends, but we stand at the ready to support our customers. Our infrastructure modernization efforts, including existing and additional future treatment capacity in strategically placed geographic areas will allow us to support growth in our customer base.

在國際上，我們尚未觀察到類似的改善趨勢，但我們隨時準備為我們的客戶提供支持。我們的基礎設施現代化工作，包括戰略佈局地理區域的現有和未來額外處理能力，將使我們能夠支持客戶群的增長。

Turning to our operational efficiency, modernization and innovation priority, our multiphase journey to construct, test and ramp up processing of regulated medical waste in the McCarran, Nevada incinerator continues to progress through the construction phase. Based on our current time line, we expect the construction phase of the project to be completed in the first half of 2024, subject to successfully achieving critical milestones, equipment deliveries and passing quality inspections.

談到我們的運營效率、現代化和創新優先事項，我們在內華達州麥卡倫焚燒廠建設、測試和加速處理受管制醫療廢物的多階段進程在建設階段繼續取得進展。根據我們目前的時間表，我們預計該項目的建設階段將於 2024 年上半年完成，前提是成功實現關鍵里程碑、設備交付並通過質量檢查。

After construction is complete, we will move into the testing phase, which includes regulatory review. Once testing is successfully completed, we will be able to ramp up the processing of waste and eventually move into full production. In addition to McCarran, we have 20 other infrastructure projects underway, including several autoclave and incinerator improvement projects with many of these upgrade projects expected to be finalized in the third quarter of 2023.

施工完成後，我們將進入測試階段，其中包括監管審查。一旦測試成功完成，我們將能夠加強廢物處理並最終進入全面生產。除了 McCarran 之外，我們還有 20 個其他基礎設施項目正在進行中，包括多個高壓滅菌器和焚燒爐改進項目，其中許多升級項目預計將於 2023 年第三季度完成。

Like many logistics companies, we are experiencing higher fleet costs, including repairs, maintenance and vehicle return fees. We expect to continue to manage these higher costs through other savings and productivity opportunities, such as our fleet modernization initiatives. At quarter end, we had received almost 80% of our outstanding fleet orders, and we anticipate receiving the remaining vehicles by late summer. Fleet modernization helps drive fuel savings and driver productivity.

與許多物流公司一樣，我們的車隊成本也很高，包括維修、保養和車輛返還費用。我們希望繼續通過其他節省和提高生產力的機會來管理這些更高的成本，例如我們的機隊現代化計劃。截至季度末，我們已收到近 80% 的未完成車隊訂單，預計在夏末收到剩餘車輛。車隊現代化有助於節省燃油並提高生產力。

Moving to the ERP. We expect to deploy U.S. Regulated Waste and Compliance Services on the platform in the third quarter, subject to successfully achieving the remaining go/no-go decision point. Over the next several weeks, approximately 5,000 team members will be involved in preparing for and launching the system. As I turn the call over to Janet to review our financial results, I'm pleased to share that our first half financial performance came in line with our full year guidance, as she will explain.

轉向 ERP。我們預計將在第三季度在該平台上部署美國監管廢物和合規服務，前提是成功實現剩餘的通過/不通過決策點。在接下來的幾週內，大約 5,000 名團隊成員將參與該系統的準備和啟動工作。當我將電話轉給珍妮特審查我們的財務業績時，我很高興地告訴大家，我們上半年的財務業績符合我們的全年指導，正如她將解釋的那樣。

Thank you, Cindy. I will start by summarizing our second quarter results. As noted on Slide 5, revenues in the second quarter were $669.5 million compared to $679.8 million in the second quarter of 2022. Excluding the net impact of divestitures of $24 million and unfavorable foreign exchange rates of $1.2 million, organic revenues increased $14.9 million. Of this increase, Regulated Waste and Compliance Services' organic revenue growth was $19.7 million, while Secure Information Destruction organic revenues declined $4.8 million.

謝謝你，辛迪。我將首先總結我們第二季度的業績。如幻燈片 5 所示，第二季度收入為 6.695 億美元，而 2022 年第二季度收入為 6.798 億美元。排除 2400 萬美元資產剝離和 120 萬美元不利匯率的淨影響，有機收入增加了 1490 萬美元。其中，受監管廢物和合規服務部門的有機收入增長了 1,970 萬美元，而安全信息銷毀部門的有機收入下降了 480 萬美元。

As noted on Slide 6, Regulated Waste and Compliance Services' revenues were $444.7 million compared to $448.4 million in the second quarter of 2022. Excluding the impact of divestitures and foreign exchange rates, organic revenues increased 4.7% in the second quarter. In North America, Regulated Waste and Compliance Services' organic revenues increased $16.8 million or 4.8%, mainly driven by our 3 pricing levers, which include pricing in existing contracts, new customer pricing and surcharges and fees.

如幻燈片 6 所示，受監管廢物和合規服務部門的收入為 4.447 億美元，而 2022 年第二季度為 4.484 億美元。排除資產剝離和外匯匯率的影響，第二季度有機收入增長了 4.7%。在北美，受管制廢物和合規服務的有機收入增長了 1,680 萬美元，即 4.8%，這主要是由我們的 3 個定價槓桿推動的，其中包括現有合同定價、新客戶定價以及附加費和費用。

We are also pleased with the year-over-year positive growth in core medical waste collected, which contributed to roughly 1/3 of the organic revenue growth. International Regulated Waste and Compliance Services' organic revenues increased $2.9 million or 3.9%, mainly driven by our pricing levers, partially offset by lower waste volumes compared to the second quarter of 2022.

我們還對核心醫療廢物收集量同比正增長感到高興，這貢獻了約 1/3 的有機收入增長。國際監管廢物與合規服務公司的有機收入增加了 290 萬美元，即 3.9%，這主要是由我們的定價槓桿推動的，但與 2022 年第二季度相比，廢物量的減少部分抵消了收入。

International waste volumes have been impacted by hospital and nursing staffing shortages and intermittent strikes throughout Europe. In the case of the United Kingdom, it was recently reported that the NHS' medical procedures backlog has increased over 200% since 2020 to more than 7.4 million patients needing medical procedures.

國際廢物量受到醫院和護理人員短缺以及整個歐洲間歇性罷工的影響。以英國為例，最近有報導稱，自 2020 年以來，NHS 的醫療程序積壓已增加超過 200%，達到超過 740 萬名需要醫療程序的患者。

Secure Information Destruction revenues were $224.8 million compared to $231.4 million in the second quarter of 2022. Excluding the impact of foreign exchange rates, organic revenues decreased 2.1%. In North America, Secure Information Destruction organic revenues declined $3.3 million or 1.6% compared to the second quarter of 2022, mainly due to the decline in fuel surcharges.

安全信息銷毀收入為 2.248 億美元，而 2022 年第二季度為 2.314 億美元。排除匯率影響，有機收入下降 2.1%。在北美，Secure Information Destruction 的有機收入與 2022 年第二季度相比下降了 330 萬美元，即 1.6%，這主要是由於燃油附加費的下降。

In the second quarter, recycling paper revenues were down approximately 4% or $8.1 million due to lower SOP, paper pricing and lower tonnage. The lower SOP recycling revenue was mostly offset by our recycling recovery surcharge, mainly due to the change in the rate table beginning in June 2022. Service revenue was up approximately 2.4% or $4.9 million, mainly driven by pricing levers, which includes the expansion of the recycling recovery surcharge.

第二季度，由於 SOP、紙張定價和噸位下降，回收紙收入下降約 4% 或 810 萬美元。 SOP 回收收入的下降大部分被我們的回收附加費所抵消，這主要是由於 2022 年 6 月開始的費率表發生變化。服務收入增長了約 2.4% 或 490 萬美元，主要受到定價槓桿的推動，其中包括回收附加費。

As a reminder, we have been working to add SOP surcharges to customer service contracts as we continue to renew contracts and win new business. These surcharges are now included in approximately 60% of North America customer contracts and are anticipated to offset approximately 60% of paper price volatility at current review rate.

謹此提醒，隨著我們不斷續簽合同並贏得新業務，我們一直在努力在客戶服務合同中添加 SOP 附加費。這些附加費現已包含在約 60% 的北美客戶合同中，預計將抵消按當前審查率計算的約 60% 的紙張價格波動。

Our service revenue growth was partially offset by lower index fuel and environmental surcharges, which have declined as fuel prices have come down year-over-year. In International, Secure Information Destruction organic revenues decreased $1.5 million or 5.4% compared to the second quarter of 2022, mainly due to lower recycling revenue and fuel and environmental surcharges.

我們的服務收入增長被較低的燃料和環境附加費指數所部分抵消，隨著燃料價格同比下降，這些附加費也有所下降。在國際領域，安全信息銷毀有機收入與 2022 年第二季度相比減少了 150 萬美元，即 5.4%，主要是由於回收收入以及燃料和環境附加費減少。

Loss from operations in the second quarter was $24 million compared to income from operations of $38.1 million in the second quarter of 2022. The $62.1 million decrease was mainly due to 2023 net divestiture losses of $54.2 million, higher incentive and stock-based compensation of $9.7 million and higher fleet costs of $4.9 million, partially offset by lower bad debt expense of $8.9 million. Although we saw a decline in fuel costs, it roughly mirrored the decline in fuel and environmental surcharges.

第二季度運營虧損為 2,400 萬美元，而 2022 年第二季度運營收入為 3,810 萬美元。減少 6,210 萬美元主要是由於 2023 年淨剝離虧損 5,420 萬美元、激勵措施和股票薪酬提高 9.7 美元百萬美元和更高的車隊成本 490 萬美元，部分被壞賬費用減少 890 萬美元所抵消。儘管我們看到燃料成本下降，但它大致反映了燃料和環境附加費的下降。

Net loss was $49.5 million or $0.54 diluted loss per share compared to net income of $10.5 million or $0.11 diluted earnings per share in the second quarter of 2022. The $60 million decrease was mainly due to lower income from operations of $62.1 million, as I just explained. Cash flow from operations for the 6 months ended June 30, 2023, was an inflow of $154.9 million compared to an outflow of $18.4 million in the same period of 2022.

淨虧損為 4950 萬美元，或稀釋後每股虧損 0.54 美元，而 2022 年第二季度的淨利潤為 1050 萬美元，或稀釋後每股收益 0.11 美元。減少 6000 萬美元主要是由於運營收入減少 6210 萬美元，正如我剛剛指出的那樣解釋道。截至 2023 年 6 月 30 日止 6 個月的運營現金流流入為 1.549 億美元，而 2022 年同期流出為 1,840 萬美元。

The year-over-year increase of $173.3 million was mainly driven by lower FCPA settlement payments of $67.6 million; accounts receivable improvements of $52.1 million, mainly due to an improvement in days sales outstanding; higher cash generated from operating income of $23.3 million; lower annual incentive compensation payments of $22.3 million; and other working capital improvements of $8 million.

同比增長 1.733 億美元主要是由於 FCPA 和解付款減少了 6,760 萬美元；應收賬款減少 5,210 萬美元，主要是由於應收賬款周轉天數的增加；營業收入產生的現金增加至 2,330 萬美元；年度激勵薪酬減少 2,230 萬美元；以及 800 萬美元的其他營運資金改進。

Adjusted income from operations was $76 million or 11.4% as a percentage of revenues, down from $82 million or 12.1% as a percentage of revenues in the second quarter of 2022. Adjusted income from operations decreased 70 basis points as a percentage of revenues due to the following: one, higher incentive and stock-based compensation of 150 basis points; and two, higher fleet costs of 70 basis points. These were partially offset by lower bad debt expense of 130 basis points.

調整後的運營收入為 7600 萬美元，佔收入的比例為 11.4%，低於 2022 年第二季度的 8200 萬美元，佔收入的比例為 12.1%。調整後的運營收入佔收入的比例下降了 70 個基點，原因是具體如下：一、激勵和股票薪酬提高150個基點；第二，機隊成本增加 70 個基點。這些損失被壞賬費用下降 130 個基點部分抵消。

As noted on Slide 8, adjusted diluted earnings per share was $0.43 compared to $0.48 in the second quarter of 2022. Excluding the impact from divestitures and foreign exchange rates of $0.01, the remaining $0.04 year-over-year decline was driven by: one, higher incentive and stock-based compensation of $0.08. As noted on the fourth quarter 2022 earnings call, we expected to incur higher year-over-year costs in this area, which began in the second quarter; and, two, higher fleet costs of $0.04. These were partially offset by lower bad debt expense of $0.07 and lower tax expense of $0.01.

如幻燈片 8 所示，調整後攤薄每股收益為 0.43 美元，而 2022 年第二季度為 0.48 美元。排除資產剝離和匯率 0.01 美元的影響，剩餘 0.04 美元的同比下降是由以下因素驅動的：一、更高的激勵和股票薪酬為 0.08 美元。正如 2022 年第四季度財報電話會議上所指出的，我們預計從第二季度開始，該領域的成本將比去年同期更高；第二，車隊成本增加 0.04 美元。這些損失被壞賬費用減少 0.07 美元和稅收費用減少 0.01 美元部分抵消。

Capital expenditures for the 6 months ended June 30, 2023, were $63.7 million compared to $70 million for the same period last year. Free cash flow for the 6 months ended June 30, 2023, was an inflow of $91.2 million compared to an outflow of $88.4 million in the same period of 2022. As noted on Slide 9, the year-over-year improvement of $179.6 million was mainly due to higher cash flow from operations of $173.3 million.

截至 2023 年 6 月 30 日的 6 個月資本支出為 6,370 萬美元，而去年同期為 7,000 萬美元。截至 2023 年 6 月 30 日的 6 個月自由現金流流入 9120 萬美元，而 2022 年同期流出 8840 萬美元。如幻燈片 9 所示，同比改善 1.796 億美元主要是由於運營現金流增加至 1.733 億美元。

Our second quarter DSO, as reported, was 55 days compared to a DSO of 64 days in the second quarter of 2022. The difference was mainly driven by the timing of North America Secure Information Destruction customer billing and collections in the prior year.

據報告，我們第二季度的 DSO 為 55 天，而 2022 年第二季度的 DSO 為 64 天。差異主要是由上一年北美安全信息銷毀客戶計費和收款的時間造成的。

As shown on Slide 10, at the end of the second quarter, our credit agreement-defined debt leverage ratio was 2.7x. Additionally, we reduced our net debt by $174.4 million in the second quarter to approximately $1.28 billion. As Cindy noted, we divested our Brazil, Republic of Korea, Australia and Singapore businesses for net proceeds of approximately $84 million. These proceeds were used to pay down our term loan by $50 million, with the remainder applied to our revolver. These divested entities contributed approximately $56 million in revenue in 2022 and approximately $20 million in revenue prior to divestiture in 2023.

如幻燈片 10 所示，第二季度末，我們的信貸協議定義的債務槓桿率為 2.7 倍。此外，我們第二季度的淨債務減少了 1.744 億美元，達到約 12.8 億美元。正如 Cindy 指出的，我們剝離了巴西、韓國、澳大利亞和新加坡業務，獲得了約 8400 萬美元的淨收益。這些收益用於償還我們 5000 萬美元的定期貸款，其餘部分用於我們的左輪手槍。這些剝離的實體在 2022 年貢獻了約 5600 萬美元的收入，在 2023 年剝離之前貢獻了約 2000 萬美元的收入。

On Slide 11, we have removed the divested revenue from our 2022 baseline revenue. The divestitures generated a nominal amount of adjusted EBITDA in 2022, and we're expected to contribute approximately $5 million in adjusted EBITDA in 2023, with a planned improvement in the second half of 2023. The majority of the anticipated $5 million reduction in adjusted EBITDA is expected to be offset by lower interest expense to using divestiture proceeds to pay down debt.

在幻燈片 11 中，我們已從 2022 年基準收入中刪除了剝離的收入。這些剝離在 2022 年產生了名義金額的調整後 EBITDA，預計我們將在 2023 年為調整後 EBITDA 貢獻約 500 萬美元，併計劃在 2023 年下半年實現改善。預計調整後 EBITDA 減少 500 萬美元，其中大部分預計將被使用剝離收益償還債務的較低利息費用所抵消。

Additionally, as of June 30, we approved plans to divest our dental recycling business in the Netherlands, which was sold earlier this week and our Secure Information Destruction joint ventures in the United Arab Emirates, which is expected to close in the third quarter, resulting in a second quarter pretax charges of $1.5 million. The dental recycling business contributed approximately $2 million in revenue in 2022 and nominal adjusted EBITDA while the joint venture is accounted for as an equity investment.

此外，截至 6 月 30 日，我們批准了剝離荷蘭牙科回收業務（已於本週早些時候出售）和阿拉伯聯合酋長國安全信息銷毀合資企業（預計將在第三季度關閉）的計劃，從而導致第二季度稅前費用為 150 萬美元。牙科回收業務在 2022 年貢獻了約 200 萬美元的收入和名義調整後 EBITDA，而合資企業則被視為股權投資。

Our results for the first 6 months of the year were aligned with our full year 2023 guidance, as shown on Slide 11. Our guidance ranges remain the same. As we look to complete construction on the new incinerator in Nevada, which is about 1/3 of our planned 2024 capital expenditures, we may pull forward cash outlays from 2024 into the fourth quarter of 2023 based on timing of equipment deliveries. If this occurs, we anticipate that it would put us in the higher end of our 2023 capital expenditure guidance range of $125 million to $145 million, which we anticipate would have a minimal impact on overall free cash flow due to projected working capital improvements.

我們今年前 6 個月的業績與 2023 年全年指導一致，如幻燈片 11 所示。我們的指導範圍保持不變。由於我們希望完成內華達州新焚燒廠的建設，約占我們計劃的 2024 年資本支出的 1/3，因此我們可能會根據設備交付時間將現金支出從 2024 年推遲到 2023 年第四季度。如果發生這種情況，我們預計這將使我們的 2023 年資本支出指導範圍達到 1.25 億美元至 1.45 億美元的上限，由於預計營運資本的改善，我們預計這對整體自由現金流的影響微乎其微。

Regarding our free cash flow guidance, it excludes other adjusted litigation items, which we anticipate may be paid in the third and fourth quarters. If paid this year, they would reduce free cash flow by approximately $25 million to $30 million. I will now turn the call back to Cindy.

關於我們的自由現金流指引，它不包括其他調整後的訴訟項目，我們預計這些項目可能會在第三和第四季度支付。如果今年支付，他們的自由現金流將減少約 2500 萬至 3000 萬美元。我現在將把電話轉回給辛迪。

Thank you, Janet. The second quarter continues to highlight the strength of our team's ability to execute against our key business priorities while maintaining our ability to achieve our full year guidance. Our team is excited to build on our momentum of our key business priorities as we look forward to the deployment of the ERP to our U.S. Regulated Waste and Compliance Services business in the third quarter. As always, I'd like to thank our customers, team members and the communities we serve and our shareholders for their continued trust in having Stericycle protect what matters.

謝謝你，珍妮特。第二季度繼續凸顯我們團隊執行關鍵業務優先事項的能力，同時保持實現全年指導的能力。我們的團隊很高興能夠在關鍵業務優先事項的基礎上再接再厲，因為我們期待在第三季度將 ERP 部署到我們的美國監管廢物和合規服務業務中。一如既往，我要感謝我們的客戶、團隊成員和我們所服務的社區以及我們的股東對 Stericycle 保護重要事物的持續信任。

Operator, please open the line for Q&A.

接線員，請開通問答線路。

(Operator Instructions)

（操作員說明）

Our first question today goes to Sean Dodge of RBC Capital Markets.

我們今天的第一個問題是向加拿大皇家銀行資本市場的肖恩·道奇提出的。

Yes. And congratulations on the great progress with the leverage ratio. I want to start on the ERP, Cindy. Yes, you said you expect to have the U.S. Regulated Waste Systems all transitioned over by, it sounds like September. If we think about the potential for disruption to the business from this, if all this goes well, by the time we get to October, are the big risks with that pretty much behind you at that point?

是的。並祝賀槓桿率取得巨大進步。我想開始使用 ERP，Cindy。是的，您說過您預計美國監管廢物系統將在 9 月份之前完成全部過渡。如果我們考慮一下這對業務造成的潛在影響，如果一切進展順利，到 10 月份時，那時的重大風險是否已經過去了？

Yes. I think it's very insightful, Sean. A couple of things that we will have when we get ready to share an update in October, we will have gone through a billing cycle or more. We'll be able to do some comparisons to make sure that we're on track in terms of trends and any of the data that we can analyze. So I think those are very big ones.

是的。我認為這是非常有洞察力的，肖恩。當我們準備在 10 月份分享更新時，我們將經歷一些計費周期或更長時間。我們將能夠進行一些比較，以確保我們在趨勢和可分析的任何數據方面走上正軌。所以我認為這些都是非常大的。

And then I think after that, you still have the nuances of, do all the -- how is it going with all the handheld (inaudible) operations? And how are all the scales transmitting all the material and the data that we need to keep track of for regulatory and compliance reasons?

然後我想在那之後，你仍然有細微差別，所有的手持（聽不清）操作進展如何？出於監管和合規原因，所有秤如何傳輸我們需要跟踪的所有材料和數據？

So there's a myriad of things. I just mentioned 2 kind of very simple buckets. But I think we're going to get a really good feel because what you talked about was disruption. And in terms of disruption, automatically, we're going to look at making sure: Number one, are we servicing customers when we should be; our customers taken care of; and then number three, is the revenue flowing through? And are we seeing it in terms of our billing process. So I think that Q3 report, we'll be able to give some pretty good insight.

所以就有了無數的事情。我剛剛提到了兩種非常簡單的桶。但我認為我們會有一種非常好的感覺，因為你談到的是顛覆。就顛覆而言，我們自然會考慮確保：第一，我們是否在應該為客戶提供服務的時候提供服務；我們的客戶得到照顧；第三，收入是否流轉？我們是否在計費流程中看到了這一點？所以我認為第三季度的報告，我們將能夠提供一些非常好的見解。

Okay. Great. And then on the margins and all the pricing actions you all have taken over the last couple of years with the service recovery fee, the shifting of the SOP table, are those all now fully reflected in what we're seeing here in Q2? Or are there more levers you pull in or some leg benefits still out there from the -- I guess as we think about margins into the back half of the year, is there any more lift you expect to get from these pricing actions on a sequential basis?

好的。偉大的。然後，在利潤方面，以及過去幾年你們採取的所有定價行動，包括服務恢復費、SOP 表的變化，這些現在都完全反映在我們在第二季度看到的情況中了嗎？或者你是否可以使用更多的槓桿，或者仍然有一些腿上的好處——我想，當我們考慮下半年的利潤率時，你期望從這些定價行動中獲得更多的提升嗎？基礎？

I think the lift that we've gotten is pretty much at steady state. I think we would look to provide additional lift if we saw conditions worsen, if anything else had happened. I think we are seeing some relief in portions of the business where costs are becoming more, I want to say, normalized. However, as we called out in an area like fleet, we are still seeing cost pressures being up with reference to maintenance, vehicle repairs. When we return any of our rental vehicles, the fees for returning some of those vehicles have been increased quite a bit.

我認為我們獲得的提升幾乎處於穩定狀態。我認為，如果我們看到情況惡化或發生其他情況，我們會尋求提供額外的電梯。我認為我們看到部分業務有所緩解，我想說的是，成本正在變得更加正常化。然而，正如我們在車隊等領域所呼籲的那樣，我們仍然看到維護、車輛維修方面的成本壓力不斷上升。當我們歸還任何租賃車輛時，其中一些車輛的歸還費用已經增加了很多。

So for us, I think we stay pretty close to it. I don't foresee anything else that would be added in terms of any changes. However, all of those are dictated by what we see in the marketplace, and I know Fed just raised yesterday. So we'll see if that drives anything else.

所以對我們來說，我認為我們已經非常接近了。我預計不會在任何更改方面添加任何其他內容。然而，所有這些都是由我們在市場上看到的情況決定的，我知道美聯儲昨天剛剛加息。所以我們會看看這是否會帶來其他影響。

Just as a latest update, Sean, just so you know, the last time we changed the scarf fee, the regulated waste fee was in October of last year. And then the last adjustment that we've made on the recycling surcharge was March of this year, just as a reference point for moving forward, but I don't see anything else at this time.

正如最新的更新，肖恩，您知道，我們上次更改圍巾費、管制廢物費是在去年 10 月。我們對回收附加費的最後一次調整是在今年三月份，只是作為前進的參考點，但目前我沒有看到任何其他情況。

And the next question goes to David Manthey of Baird.

下一個問題是貝爾德公司的大衛·曼西 (David Manthey)。

Yes. Thank you. Good morning. First question related to the question that was just asked, after the inefficiencies that you experienced with the SID ERP rollout, have you factored in any type of disruption or any efficiencies or anything in RWCS in the current 2023 guidance that you've given us?

是的。謝謝。早上好。第一個問題與剛才提出的問題相關，在您經歷了 SID ERP 部署的低效率之後，您是否在您向我們提供的當前 2023 年指導中考慮了 RWCS 中的任何類型的中斷或任何效率或任何內容？

Yes. David, the guidance that we put out for the year reflected that we were going to go through this. And so that meant that we weren't going to be able to drive significant productivity improvements in the second half of the year as -- in the RWCS space as they will actually be taken off for training, they're actually doing that now, and that will ramp up in this quarter for the go live.

是的。大衛，我們今年發布的指導反映了我們將經歷這個過程。因此，這意味著我們將無法在下半年推動生產力的顯著提高，因為在 RWCS 領域，他們實際上將被起飛進行培訓，他們現在實際上正在這樣做，並且將在本季度上線。

Secure Information Destruction will continue to drive operational efficiencies, but that will be offset by what we plan for just this productivity, if you will, from putting an ERP in. And I think you can see that our guidance and outlook for the year is pretty reasonable, and that is reflected in the sales growth as well. So the short answer is yes, we plan for some of that.

安全信息銷毀將繼續提高運營效率，但這將被我們對這種生產力的計劃（如果您願意的話）通過引入 ERP 來抵消。我認為您可以看到我們今年的指導和展望非常好合理，這也反映在銷售增長上。所以簡短的回答是肯定的，我們為此做了一些計劃。

Okay. And then, Janet, further, based on the free cash flow guidance you've given us in the past and you've sort of given us some thoughts around the magnitude of operating margin improvement that you ultimately might expect in the business, can you give us an idea of what you might be thinking about in year 1 after this? You come out the other side? And again, based on the opportunity that you see out there, BlueSky in addition to the experience that you had and sort of the cadence of improvement coming out of the SID improvement trajectory after you implemented the ERP there. Any thoughts you can give us on that?

好的。然後，珍妮特，進一步，根據您過去向我們提供的自由現金流指導，以及您對您最終可能期望在業務中實現的營業利潤率改善幅度的一些想法，您可以嗎？請告訴我們您在這之後的第一年可能會考慮什麼？你從另一邊出來嗎？再說一遍，基於您看到的機會，BlueSky 除了您擁有的經驗之外，還有您在那裡實施 ERP 後 SID 改進軌跡中出現的改進節奏。您對此有何想法？

So we still remain committed to our long-term guidance, which included the 13% to 17% adjusted improvement that we -- that is reflected in improved margin improvement. And what will happen is Secure Information Destruction continues we'll get some momentum into next year as they continue to find opportunities through using the platform to generate productivity improvements from fleet to route to idle time to all the measures that we can see while RWCS will learn the platform and then it will start probably towards the second half of the year to be able to leverage it.

因此，我們仍然致力於我們的長期指導，其中包括我們調整後的 13% 至 17% 的改善，這反映在利潤率改善上。將會發生的事情是，安全信息銷毀將繼續進行，我們將在明年獲得一些動力，因為他們將繼續尋找機會，通過使用該平台來提高生產力，從車隊到路線到閒置時間，再到我們可以看到的所有措施，而 RWCS 將會了解該平台，然後可能會在下半年開始能夠利用它。

So the advantage of sequencing the 2 businesses is one can keep moving and driving on the improvements while the other is taking on the new work and learning it and then can move into driving improvement.

因此，對這兩項業務進行排序的優點是，其中一項業務可以繼續前進並推動改進，而另一項業務則可以開展新工作並學習它，然後可以繼續推動改進。

Our next question goes to Scott Schneeberger of Oppenheimer.

我們的下一個問題是向奧本海默的斯科特·施內伯格提出的。

I'll echo the congratulations on reducing the financial leverage. You mentioned, I think it was Netherlands and United Emirates divestitures in the quarter. Could you just give us an update on where you are on the portfolio optimization process. It seems like you're announcing a few weeks each quarter now. They don't sound too material in size, but I'm just curious how much more meaningful proceeds perhaps can be derived there?

我也對降低財務槓桿表示祝賀。您提到，我認為本季度是荷蘭和阿聯酋的資產剝離。您能否向我們介紹一下您在投資組合優化過程中的最新進展？看起來您現在每個季度都會宣布幾週的時間。它們的規模聽起來並不太重要，但我只是好奇從中可以獲得多少更有意義的收益？

Yes. Scott, great question. Portfolio optimization remains one of our key priorities. I'm -- I think we've got about 17 -- well, the dental business will be 18 divestitures in the last little bit. The joint venture in the UAE will be, if you will, 19, although certainly different than the others because it's a joint venture. But in essence, kind of pulling out of business, pulling out of operations. But along that same time period, we've had an acquisition, too.

是的。斯科特，好問題。投資組合優化仍然是我們的首要任務之一。我想我們已經有大約 17 家——好吧，牙科業務最後將有 18 家被剝離。如果你願意的話，阿聯酋的合資企業將是 19 家，儘管它肯定與其他企業不同，因為它是一家合資企業。但本質上，是退出業務、退出運營。但在同一時期，我們也進行了收購。

So for us, I think if you take a look at the discipline that we've had fiscally in terms of improving the balance sheet, if you take a look at the position that we're in, in terms of overall debt, I think portfolio optimization for us continues to be looking at markets where we believe we have the opportunity to grow at the margins that we believe a company of our size and the value that we can bring would be meaningful.

因此，對於我們來說，我認為如果你看看我們在改善資產負債表方面的財政紀律，如果你看看我們在總體債務方面所處的位置，我認為我們的投資組合優化繼續著眼於我們認為有機會實現增長的市場，我們相信像我們這樣規模的公司和我們可以帶來的價值是有意義的。

So I think the long answer that I gave you is really, in portfolio optimization, we continue to look from a divestiture perspective as well as a potential acquisition perspective as we've done before and we'll see where that leads.

因此，我認為我給您的長答案實際上是，在投資組合優化中，我們將繼續從資產剝離的角度以及潛在收購的角度進行研究，就像我們之前所做的那樣，我們將看看這會帶來什麼結果。

And the next question goes to Tobey Sommer of Truist Securities.

下一個問題是 Truist 證券公司的托比·索默 (Tobey Sommer) 提出的。

This is Jack Wilson on for Tobey Summer. Can you give me a little more color around sort of the organic revenue decline in Secure Information Destruction?

我是傑克·威爾遜 (Jack Wilson) 為托比·薩默 (Tobey Summer) 配音。您能否給我更多關於安全信息銷毀領域有機收入下降的信息？

Sure. I think one of the things that I think we need to really take a look at is I like to look at Secure Information more in terms of first half of the year versus last year, first half of the year, simply because things, I think, have the potential to get skewed. Last year, first half, it was early 2022, record inflation, driver shortages, supply chain issues, and we were still dealing, believe it or not, with Omicron with 14-day quarantines if anybody was exposed to anybody that had COVID.

當然。我認為我們需要真正考慮的一件事是，與去年上半年相比，我更喜歡在今年上半年關注安全信息，僅僅是因為我認為，有可能出現偏差。去年，即 2022 年初，通貨膨脹創歷史新高，司機短缺，供應鏈出現問題，不管你信不信，我們仍在與 Omicron 打交道，如果有人接觸過感染了新冠病毒的人，我們將被隔離 14 天。

And if you recall, Q1 of last year was probably one of the most difficult operating quarters we've ever had. And when you take a transactional business that says you only get paid if you actually make a stop, you've got some difficulties there when you're already in a driver shortage to begin with, and then you have a lot of drivers out based off of different CDC rules.

如果您還記得的話，去年第一季度可能是我們經歷過的最困難的運營季度之一。當你從事一項交易業務時，如果你真的停下來，你就會得到報酬，那麼當你一開始就面臨司機短缺的情況時，你就會遇到一些困難，然後你就會有很多司機缺席。不同的 CDC 規則。

So as a result, Q1 of this year, Shred saw -- our Secure Information Destruction business in North America grew 13.4% over the prior year. So as you can see, that was a pretty big number. What ended up happening and what we believe is we then accelerated, started to get drivers back, put drivers in seats, had ramp-up time to get drivers ready to go, and we made up for an awful lot of those stops in Q2 of last year.

因此，今年第一季度，Shred 看到——我們在北美的安全信息銷毀業務比上一年增長了 13.4%。正如您所看到的，這是一個相當大的數字。最終發生的事情以及我們相信的是，我們然後加速，開始讓司機回來，讓司機坐在座位上，有準備時間讓司機準備好出發，我們在第二季度彌補了很多這些停車。去年。

So what we're seeing right now is the overall comparison this quarter versus last quarter. We are showing in North America a decline -- a modest decline of 1.6% and -- but I think it's just coming off of that comparison. So our ability to reaffirm guidance this year believes that the fundamentals of what we're seeing in the Shred business still continues to be what we think is good. So for us, it's not a quarter story. We're continuing to monitor the overall business, and we like the position that we're in.

所以我們現在看到的是本季度與上季度的總體比較。我們在北美看到了下降——小幅下降 1.6%——但我認為這只是從比較中得出的結果。因此，我們今年重申指導的能力相信，我們在 Shred 業務中看到的基本面仍然是我們認為良好的。所以對我們來說，這不是四分之一的故事。我們將繼續監控整體業務，我們喜歡我們所處的位置。

I just would add that we also have the dynamic of a fuel surcharge that is mostly in the shredded business. And as fuel costs came down, it worked as it should in that index came down at revenue, but costs came down in the core business as well and our cost of revenue. So it sort of did what it was supposed to do at the EBIT level, and we're still okay. So that's a top line dynamic that doesn't filter down to the bottom line.

我只是想補充一點，我們也有燃油附加費的動態，主要是在碎紙業務中。隨著燃料成本的下降，該指數的收入下降了，但核心業務的成本也下降了，我們的收入成本也下降了。所以它在息稅前利潤水平上做了它應該做的事情，我們仍然沒問題。因此，這是一個頂線動態，不會滲透到底線。

(Operator Instructions) Our next question goes to you Brian Butler of Stifel. Brian.

（操作員說明）我們的下一個問題是 Stifel 的 Brian Butler。布萊恩.

First question, just on the Secure Information Destruction business, did the stops increase? And are you seeing a meaningful shift between on-site shred versus off-site?

第一個問題，就安全信息銷毀業務而言，止損點是否增加了？您是否看到現場粉碎與異地粉碎之間發生有意義的轉變？

Yes. I think on-site versus off-site, we've been making steady progress. And I think it's pretty much been not as -- we made more progress earlier than where we are right now in terms of -- when we purchased the business back in 2015, there was a tremendous amount of shredding on a customer site, which is very difficult, specialized vehicles, a lot of vehicle issues, high maintenance with not as much being brought back to facilities.

是的。我認為現場與場外相比，我們一直在穩步進步。我認為這幾乎不是——我們比現在更早地取得了更多進展——當我們在 2015 年購買該業務時，客戶網站上有大量的粉碎，這是非常困難，專用車輛，很多車輛問題，維護成本高，但沒有那麼多被帶回設施。

Over the course of the last several years, there's been a marked effort to now -- the majority of the volume that we pick up is processed back in our facility as opposed to with the specialized vehicles on site. So for me, I think we're in a really good position there. We constantly look to improve that. But I think that's a real good dynamic for us.

在過去的幾年裡，我們現在已經做出了顯著的努力——我們收集的大部分貨物都在我們的工廠內進行處理，而不是使用現場的專用車輛。所以對我來說，我認為我們處於非常有利的位置。我們不斷尋求改進。但我認為這對我們來說確實是一個很好的動力。

And in reference, in terms of SOPs, just remember, we continue to win new business, we continue to drive our sales efforts in that space. And I think, unfortunately, we've got 2 quarters with different dynamics in a transactional business for some odd comparisons. But I think overall, we take a look internally at where we are for stops. And I think in terms of how we are trending towards our plan and how that plan fits into our 3% to 5% growth -- organic revenue growth for the company, we're reaffirming guidance which means we believe we're on track.

就標準操作程序而言，請記住，我們將繼續贏得新業務，我們將繼續推動該領域的銷售工作。我認為，不幸的是，我們有兩個季度的交易業務動態不同，可以進行一些奇怪的比較。但我認為總體而言，我們會在內部審視我們的停靠點。我認為，就我們的計劃趨勢以及該計劃如何適應我們 3% 到 5% 的增長（公司的有機收入增長）而言，我們正在重申指導方針，這意味著我們相信我們正在走上正軌。

Okay. And then shifting back to the ERP. Can you remind us what the duplicative IT costs are? Is there any more cost to be eliminated once the ERP is fully rolled out? And how does that, I guess, flow through the business over the next -- whether that be 6 or 12 months?

好的。然後又回到 ERP。您能否提醒我們重複的 IT 成本是多少？ ERP全面上線後，是否還有更多成本需要消除？我想，接下來的業務將如何發展——無論是 6 個月還是 12 個月？

Yes, you're right. We are maintaining and we put into full operation, which was about $50 million to $60 million of costs that slipped into our normal operating expenses in August of 2021 for the new system, while maintaining the legacy system of which RWCS is on globally. And that costs around $20 million to $30 million of legacy costs in IT and some other related areas. That is the cost that has the opportunity to go away once we're fully deployed, but we also need to modernize international before we can achieve that.

你是對的。我們正在維護並投入全面運營，大約 5000 萬至 6000 萬美元的成本已計入 2021 年 8 月新系統的正常運營費用，同時維護 RWCS 在全球範圍內使用的遺留系統。這會在 IT 和其他一些相關領域造成約 2000 萬至 3000 萬美元的遺留成本。一旦我們全面部署，這一成本就有機會消失，但在實現這一目標之前，我們還需要實現國際現代化。

So we're well on our path for that, and we have started to work on the international space, but it needs to come off globally before we can really turn that legacy system over. And that is factored into our long-term guidance as we thought through on the savings that we will achieve on IT costs.

因此，我們在這方面進展順利，我們已經開始在國際領域開展工作，但它需要在全球範圍內開展，然後我們才能真正轉變遺留系統。當我們仔細考慮我們將實現的 IT 成本節省時，這一點已納入我們的長期指導中。

And we have a follow-up question from Scott Schneeberger of Oppenheimer.

奧本海默的斯科特·施尼伯格向我們提出了後續問題。

Cindy, with fleet cost being an issue here, and I wanted to hone in on the use of rentals a little bit. What percent of vehicles are you -- it sounds like you're fleeting up a bit and fleet modernizing, but use of rentals, where are you now as maybe a percent of your fleet and usage on a given day. And where are you looking to take that as a goal?

辛迪，車隊成本是這裡的一個問題，我想稍微研究一下租賃的使用。您佔車輛的百分比是多少——聽起來您的車輛數量有所增加，並且車隊正在現代化，但是使用租賃，您現在在哪裡，可能佔您的車隊和某一天的使用量的百分比。您希望以此為目標嗎？

Yes. That's pretty keen, a good insight, Scott. So for us, we've had -- we've been in the rental business. I think most of last year -- second half of last year, we talked an awful lot about the supply chain being far behind and the actual receiving of our vehicle requests really being delayed. So as a result, you want to continue, you continue to grow, you continue to see organic growth, you've got to be able to service your customers. And rentals not just of tractors, but then also trailers, you've got a rent in order for that growth in terms of your ability to hold on to your trailers and a lot of the other power units.

是的。這是非常敏銳的洞察力，斯科特。所以對我們來說，我們一直從事租賃業務。我想去年的大部分時間——去年下半年，我們談論了很多關於供應鏈遠遠落後以及我們的車輛請求的實際接收確實被延遲的問題。因此，你想要繼續，你繼續成長，你繼續看到有機增長，你必須能夠為你的客戶提供服務。不僅是拖拉機的租賃，還有拖車的租賃，您需要支付租金才能提高您持有拖車和許多其他動力裝置的能力。

So since the beginning of this year, we've really been modeling an opportunity as vehicles and the fleet orders have started to come in. We've been, this year, going on some pretty massive vehicle returns, so returning those rentals that we have. And what we have seen are some pretty high -- some pretty exponentially high return costs for each vehicle. It used to be a set amount that was quite reasonable. And in some instances, we've seen it be 200% more in terms of an increase.

因此，自今年年初以來，隨著車輛和車隊訂單開始出現，我們確實一直在模擬機會。今年，我們進行了相當大規模的車輛退貨，因此退還了我們的租金有。我們所看到的情況是，每輛車的退貨成本相當高，有些甚至呈指數級高。以前是一個相當合理的固定金額。在某些情況下，我們發現增幅高達 200%。

So as you return more, which is a good thing because you're going to get a new vehicle order come in, you're going to have a vehicle that's more modernized and it's better equipped and designed for the job that our frontline drivers do. However, you do take a hit in terms of the rental.

因此，當您返回更多時，這是一件好事，因為您將收到新的車輛訂單，您將擁有一輛更現代化的車輛，它的裝備和設計更適合我們一線司機的工作。然而，您在租金方面確實受到了打擊。

So your question is how many do we have? I can tell you, by the end of summer, we're estimating to have 80% of our fleet order completed. Now that's a much better position than we've been in quite some time. We've had -- we've been waiting on quite a few vehicles. So for us, I think we're winding down the last bit of our rental returns on the trailers as well as on the power equipment.

所以你的問題是我們有多少？我可以告訴你，到夏末，我們預計將完成 80% 的機隊訂單。現在的情況比我們在相當長一段時間內的情況要好得多。我們已經等待了相當多的車輛。因此，對我們來說，我認為我們正在逐步減少拖車和電力設備的最後一點租金回報。

But I think the overall fleet strategy, Sean, I think -- or I'm sorry, Scott, the overall strategy that we have is we eventually want to even get out of the leasing business because right now, we've talked before about our fleet strategy has been leasing. I think a longer-term push for us will be to a point where we continue to be fiscally responsible, have some strength in our balance sheet. We're looking for reasons to invest as we continue to generate cash.

但我認為整體機隊戰略，肖恩，我認為 - 或者對不起，斯科特，我們的整體戰略是我們最終甚至希望退出租賃業務，因為現在我們之前已經討論過我們的機隊策略一直是租賃。我認為，對我們來說，長期的推動將是我們繼續承擔財政責任，並在資產負債表上擁有一定的實力。隨著我們不斷產生現金，我們正在尋找投資的理由。

I think our long-term momentum to be able to start to buy some of the fleet and buy the trailers so that we can really take advantage of that on our balance sheet. I think that's the future of where we'd like to get to.

我認為我們的長期動力是能夠開始購買一些車隊併購買拖車，這樣我們就可以真正在我們的資產負債表上利用這一點。我認為這就是我們想要達到的未來。

And we have a follow-up from Jack Wilson of Truist Securities.

Truist 證券公司的傑克·威爾遜 (Jack Wilson) 也對我們進行了跟進。

So could you just maybe walk through a little bit of the moving parts of achieving full year EPS guidance with sort of the ERP system and the new fleet dynamics?

那麼，您能否通過 ERP 系統和新的機隊動態來介紹一下實現全年 EPS 指導的一些活動部分？

So we have a fairly stable year. But if you look at where we delivered the first half, it kind of is in line with the first half guidance. If you split the guidance in 2, in the second half is kind of in the same boat. The -- you'll probably see some uptick in the fourth quarter just as we get through the ERP and we continue to drive productivity in shred, but -- we are going into an ERP. So the precision of being able to do a quarterly precision on what's going to happen is a little tougher, but we're really confident in the second year and the guidance for the full year that we put out.

所以我們度過了相當穩定的一年。但如果你看看我們上半場的表現，就會發現它與上半場的指導是一致的。如果你把指導分成兩部分，那麼下半場的情況也是一樣的。 - 你可能會在第四季度看到一些上升，就像我們通過 ERP 一樣，我們繼續大幅提高生產力，但是 - 我們正在進入 ERP。因此，能夠對將要發生的事情進行季度精確度有點困難，但我們對第二年以及我們發布的全年指導非常有信心。

We have no further questions. I'll now hand back to Cindy for any closing comments.

我們沒有其他問題了。我現在將把任何結束語交還給辛迪。

Thank you, Nadia. So for everyone listening to the call, I just want to share that we -- as always, we appreciate your interest in Stericycle and your shared excitement in our future. So thank you very much. We'll talk to you all soon.

謝謝你，納迪亞。因此，對於每一位收聽電話會議的人，我只想與大家分享，我們一如既往地感謝你們對 Stericycle 的興趣以及你們對我們未來的共同興奮。非常感謝。我們很快就會和大家談談。

Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。感謝大家的加入。您現在可以斷開線路。