Verra Mobility Corp (VRRM) 2024 Q1 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the variability First Quarter 2024 earnings call.

女士們、先生們，下午好，歡迎參加 2024 年第一季的可變性收益電話會議。

At this time, all lines are in a listen only mode.

此時，所有線路都處於只聽模式。

Following the presentation, we will conduct a question-and-answer session.

演講結束後，我們將進行問答環節。

If at any time during this call you require immediate assistance, please press star zero for the operator.

如果在通話期間您隨時需要立即協助，請按下接線員的零星鍵。

This call is being recorded on Thursday, May 2, 2024.

本次通話錄音時間為 2024 年 5 月 2 日星期四。

I would now like to turn the conference over to Mark Ziegler, Vice President of Investor Relations.

我現在想將會議交給投資者關係副總裁馬克‧齊格勒 (Mark Ziegler)。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good afternoon and welcome to Varian Mobility's First Quarter 2024 earnings call today, we'll be discussing the results announced in our press release issued after the market close, along with our earnings presentation, which is available on the Investor Relations relations section of our website at ir dot zero mobility.com.

下午好，歡迎參加今天瓦里安移動 2024 年第一季財報電話會議，我們將討論收市後發布的新聞稿中宣布的結果，以及我們的收益演示（可在我們網站的投資者關係部分查看）在ir dot Zeromobility.com 上。

With me on the call are David Roberts, Verra Mobility's Chief Executive Officer, and Craig Conti, our Chief Financial Officer.

與我一起參加電話會議的是 Verra Mobility 執行長 David Roberts 和我們的財務長 Craig Conti。

David, who will begin with prepared remarks, followed by Craig, and then we'll open up the call for Q&A.

大衛將首先發表準備好的講話，然後是克雷格，然後我們將開始問答環節。

Management may make forward-looking statements during the call regarding future events, anticipated future trends and the anticipated future performance of the Company.

管理層可能在電話會議期間就公司未來事件、預期未來趨勢和預期未來業績發表前瞻性聲明。

We caution you that such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.

我們提醒您，此類聲明並不是對未來業績的保證，並且涉及難以預測的風險和不確定性。

Actual results may differ materially from those projected in the forward-looking statements due to a variety of factors.

由於多種因素，實際結果可能與前瞻性聲明中的預測有重大差異。

These factors are described in our SEC filings.

我們向 SEC 提交的文件中描述了這些因素。

Please refer to our earnings press release for Verra Mobility's complete forward-looking statement disclosure.

請參閱我們的收益新聞稿，以了解 Verra Mobility 揭露的完整前瞻性聲明。

We do not undertake any obligation to update forward-looking statements.

我們不承擔任何更新前瞻性陳述的義務。

Finally, during today's call, we'll refer to certain non-GAAP financial measures A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in our earnings release, which can be found on our website at ir dot Verra Mobility.com and on the SEC's website at SEC.gov. With that, I'll turn the call over to David.

最後，在今天的電話會議中，我們將提及某些非GAAP 財務指標。 Verra 上找到該指標Mobility.com 和 SEC 網站 SEC.gov。這樣，我就把電話轉給大衛。

Thank you, Mark, and thanks, everyone, for joining us.

謝謝你，馬克，也謝謝大家加入我們。

We had a strong start to the year with revenue, adjusted EBITDA and earnings exceeding our internal expectations for the first quarter.

我們今年開局強勁，第一季的營收、調整後 EBITDA 和收益都超出了我們的內部預期。

Moreover, all three business units met or exceeded our internal expectations for adjusted EBITDA for the quarter through our customer oriented solutions and execution strength guided by the bare mobility operating system or IVMOS.

此外，透過我們以客戶為導向的解決方案和由裸行動作業系統或 IVMOS 指導的執行力，所有三個業務部門都達到或超出了我們對本季度調整後 EBITDA 的內部預期。

We are consistently delivering strong financial performance, consolidated revenue growth was 9%, adjusted EBITDA increased 6% and adjusted free cash flow increased 57% over the prior year period, demonstrating the predictable strength of our portfolio of businesses.

我們始終如一地實現強勁的財務業績，與上年同期相比，合併收入增長 9%，調整後 EBITDA 增長 6%，調整後自由現金流增長 57%，這證明了我們業務組合的可預測實力。

Based on the first quarter financial performance and our outlook for the remainder of the year, we are increasing our full year 2024 guidance, which Craig will elaborate on in his remarks.

根據第一季的財務表現和我們對今年剩餘時間的展望，我們正在提高 2024 年全年指導，克雷格將在他的演講中詳細闡述這一點。

Now moving on to our business unit operations.

現在繼續我們的業務部門運作。

The commercial services team delivered outstanding results, driven by strong and durable domestic travel trends and our continued strong performance in the fleet management business, first quarter revenue of $96 million grew 12% over the prior year quarter, and adjusted EBITDA margins of 63% were up about 90 basis points over last year due primarily to the strength of rack tolling.

在強勁持久的國內旅行趨勢以及車隊管理業務持續強勁表現的推動下，商業服務團隊取得了出色的業績，第一季營收為9,600 萬美元，比去年同期成長12%，調整後EBITDA 利潤率為63 %比去年上漲約 90 個基點，主要是因為貨架收費的強勁。

First quarter TSA throughput volume was about 106% of 2023, driving strong growth in adopted rental agreements and tolls incurred, all of which resulted in a 10% increase in rack tolling revenue.

第一季 TSA 吞吐量約為 2023 年的 106%，推動採用的租賃協議和通行費的強勁增長，所有這些都導致​​機架通行費收入增長 10%。

Additionally, our S&C business generated revenue of $17 million for the quarter representing 25% growth over the prior year period, primarily driven by enrollments of new vehicles and increased tolling from FMC customers.

此外，我們的 S&C 業務本季營收為 1,700 萬美元，比去年同期成長 25%，這主要是由於新車註冊量和 FMC 客戶通行費增加所致。

Looking ahead, over the course of 2024 we expect continued strength in rack tolling revenue due to strong travel bookings based on commentary from the major airlines and hotel chains in our FMC business, we are anticipating a modest pullback in relative growth rates over the balance of the year due primarily to tougher comps this year.

展望未來，根據我們 FMC 業務中主要航空公司和連鎖酒店的評論，由於旅行預訂強勁，我們預計 2024 年機架通行費收入將持續強勁，我們預計相對增長率將小幅回落這一年主要是由於今年的競爭更加激烈。

The underlying strength of commercial services and particularly the strong travel outlook were the key factors influencing the decision to raise full year guidance.

商業服務的潛在實力，尤其是強勁的旅遊前景，是影響上調全年指引決定的關鍵因素。

Moving on to Government Solutions.

轉向政府解決方案。

Recurring service revenue, which reflects 96% of total revenue for the quarter grew 8% over the same period last year.

佔本季總營收 96% 的經常性服務收入比去年同期成長 8%。

The recurring service revenue growth was driven by program expansion from existing customers and new cities, implementing photo enforcement efforts to improve growth and improve road safety to this point, outside of New York City, we drove 15% revenue growth due to our existing customers' efforts to expand their safety programs.

經常性服務收入的增長是由現有客戶和新城市的計劃擴展推動的，實施照片執法工作以促進增長並改善道路安全。了15% 的收入成長。

Total revenue, including international product sales were up about 10% over the prior year quarter.

包括國際產品銷售在內的總收入比去年同期成長了約 10%。

As we discussed in our last earnings call, we are seeing RFPs and award activity continue to ramp up in Florida.

正如我們在上次財報電話會議中討論的那樣，我們看到佛羅裡達州的 RFP 和獎勵活動繼續增加。

I am pleased to report that year to date, we executed contracts for schools on speed, school bus, stop arm and red light programs that in the aggregate represent potential recurring revenue of up to $7 million per year.

我很高興地向大家報告，今年迄今為止，我們已與學校簽訂了關於速度、校車、停車臂和紅燈項目的合同，這些項目總計代表每年高達 700 萬美元的潛在經常性收入。

Additionally, on the international side of the GS business, we were awarded an extension of our national highways maintenance contract in the United Kingdom for our variable speed and Lane closure systems.

此外，在 GS 業務的國際方面，我們獲得了英國國家高速公路維護合約的延期，以支援我們的變速和車道封閉系統。

This contract award will drive an approximately $2 million of a our increase in the current revenue run rate.

該合約授予將使我們當前的收入運行率增加約 200 萬美元。

We're also very pleased to report that in the state of Washington legislation was passed for the expansion of speed programs, bus lane, automated enforcement and other beneficial reforms.

我們也非常高興地報告，華盛頓州通過了擴大速度計畫、公車專用道、自動化執法和其他有益改革的立法。

Overall, we had a strong first quarter from an awards perspective, we're highly competitive in the market and winning our fair share of deals, which for the quarter represent up to $10 million of incremental full run-rate ARR potential.

總體而言，從獎項的角度來看，我們第一季表現強勁，我們在市場上具有高度競爭力，並贏得了公平的交易份額，這代表了本季度高達1000 萬美元的增量滿載率ARR 潛力。

Moving on to the New York City automated enforcement renewal contract.

接下來是紐約市自動執行續約合約。

The city recently published a notification indicating its intention to release the RFP in fiscal year 2024, potentially late in the second quarter of this year.

該市最近發布了一份通知，表示打算在 2024 財年（可能是今年第二季末）發布 RFP。

We expect this to be a competitive procurement and believe we have a strong combination of best in class technical solutions and market experience to compete effectively for this program.

我們預計這將是一次具有競爭力的採購，並相信我們擁有一流的技術解決方案和市場經驗的強大組合，可以有效地參與該計劃。

Next, a brief update on T2 systems.

接下來，對 T2 系統進行簡要更新。

We generate total revenue of approximately $20 million for the first quarter.

我們第一季的總收入約為 2000 萬美元。

As we anticipated, onetime product revenue declined by about $1 million compared to the prior year quarter due to a structural transition away from hardware and towards software and mobile solutions as product revenue decelerates.

正如我們預期的那樣，由於產品收入減速，從硬體轉向軟體和行動解決方案的結構性轉型，一次性產品收入比去年同期下降了約 100 萬美元。

We also we also experienced a decline of onetime ancillary installation and maintenance services revenue.

我們也經歷了一次性輔助安裝和維護服務收入的下降。

Recurring SaaS revenue was up 5% over the prior year quarter.

經常性 SaaS 營收比去年同期成長 5%。

Adjusted EBITDA of $3 million for the quarter was primarily driven by the year over year SaaS revenue growth.

本季調整後 EBITDA 為 300 萬美元，主要是由 SaaS 營收年增率推動的。

For the full year, we continue to expect T. two system to deliver mid single digit revenue growth and return to high single-digit revenue growth over the long term, driven by the strength in focus on SaaS and the introduction of transactional revenue pricing opportunities.

就全年而言，我們繼續預計T.two 系統將實現中等個位數收入增長，並在長期內恢復高個位數收入增長，這主要得益於對SaaS 的關注力度以及交易收入定價機會的引入。

Turning to capital allocation, we further reduced net leverage to 2.4 times providing optionality for future capital deployment.

在資本配置方面，我們進一步將淨槓桿率降低至2.4倍，為未來的資本配置提供了選擇性。

With respect to M&A, the pipeline is growing.

在併購方面，管道正在不斷成長。

We've been disciplined around valuation, but remain active in our evaluation of opportunities.

我們在估值方面一直遵守紀律，但仍積極評估機會。

Additionally, we have an open authorization for a $100 million stock buyback through the first quarter.

此外，我們也獲得了在第一季回購 1 億美元股票的公開授權。

We have sought to increase cash on the balance sheet, but the open buyback continues to be a viable option for capital deployment.

我們一直在尋求增加資產負債表上的現金，但公開回購仍是資本部署的可行選擇。

And lastly, I'll provide a brief update on the company-wide implementation of Aperam mobility operating system or DMOS. two years ago, we set out to build the future of air mobility.

最後，我將簡要介紹 Aperam 行動作業系統（DMOS）在全公司範圍內的實施情況。兩年前，我們著手建構空中交通的未來。

We knew that to deliver unparalleled value to our customers, empower our employees and maximize returns for shareholders.

我們知道，要為客戶提供無與倫比的價值，為員工賦能，並為股東帶來最大回報。

We needed a unified and standardized approach to continuously improve the critical areas of our business.

我們需要一種統一、標準化的方法來不斷改進我們業務的關鍵領域。

We established a very mobility operating system, a dynamic set of mechanisms and tools designed to drive operational excellence and Spark continuous improvement across all parts of air mobility.

我們建立了一個非常機動的操作系統，一套動態的機制和工具，旨在推動卓越運營並激發空中機動各個部分的持續改進。

Since then, we have deployed DMOS mechanisms and core focus areas, including operating reviews, strategic planning and deployment, problem-solving and sales funnel management.

此後，我們部署了DMOS機制和核心重點領域，包括營運審查、策略規劃和部署、問題解決和銷售漏斗管理。

As an organization.

作為一個組織。

We are building the muscle memory around leveraging VMOS. to drive operational excellence across these areas.

我們正在圍繞利用 VMOS 來建立肌肉記憶。推動這些領域的卓越營運。

Finally, as we announced in our press release last month, I'd like to formally welcome and congratulate Cate Prescott on her appointment as Executive Vice President and Chief People Officer.

最後，正如我們在上個月的新聞稿中宣布的那樣，我要正式歡迎並祝賀 Cate Prescott 被任命為執行副總裁兼首席人事官。

Its HR experience and leadership expertise will be instrumental in shaping our organization and HR strategy.

其人力資源經驗和領導專業知識將有助於制定我們的組織和人力資源策略。

Welcome to the teen case.

歡迎來到青少年案例。

Craig, I'll turn it over you to guide us through our financial results and 2024 guidance update.

Craig，我將把它交給您來指導我們完成財務業績和 2024 年指導更新。

Thank you, David.

謝謝你，大衛。

Good afternoon, and thanks to everyone for joining us on the call.

下午好，感謝大家加入我們的電話會議。

I'll start out today by providing an overview of our first quarter results, followed by an updated overview of how we're thinking about full year 2024.

今天我將首先概述我們第一季的業績，然後更新概述我們對 2024 年全年的看法。

Let's turn to slide 4, which outlines the key financial measures for the consolidated business.

讓我們看投影片 4，它概述了合併業務的關鍵財務措施。

For the first quarter of 10, total revenue increased approximately 9% year over year to $210 million for the quarter, driven by strong recurring service revenue growth across the Company.

2010 年第一季度，在公司經常性服務收入強勁成長的推動下，總營收年增約 9%，達到 2.1 億美元。

Recurring service revenue grew 10% over the prior year quarter, driven by strong travel demand in the CS business and recurring service revenue growth outside of New York City in GS.

受 CS 業務強勁旅遊需求以及紐約市以外的 GS 經常性服務收入成長的推動，經常性服務收入比去年同期成長 10%。

At the segment level, commercial services grew 12% year over year.

在細分領域，商業服務較去年同期成長12%。

Government Solutions service revenue increased by 8% over the prior year and key to system SaaS and services revenue grew 5% over the first quarter of 2023.

政府解決方案服務收入較前一年成長 8%，關鍵系統 SaaS 和服務收入較 2023 年第一季成長 5%。

Product revenue was $7 million for the quarter, about $3 million of this total was from T. two systems, while $4 million was from government solutions.

該季度的產品收入為 700 萬美元，其中約 300 萬美元來自 T.two 系統，400 萬美元來自政府解決方案。

The majority of which were international products.

其中大部分是國際產品。

From a total profit standpoint, consolidated adjusted EBITDA of $93 million increased by approximately 6% over last year.

從總利潤來看，綜合調整後 EBITDA 為 9,300 萬美元，比去年增長約 6%。

We reported net income of $29 million for the quarter, including a tax provision of about $10 million, representing an effective tax rate of 25%.

我們公佈的本季淨利潤為 2,900 萬美元，其中包括約 1,000 萬美元的稅收撥備，相當於 25% 的有效稅率。

The tax rate includes certain discrete items, which favorably impacted the rate for the quarter.

稅率包括某些離散項目，這對本季的稅率產生了有利影響。

For the full year, we are anticipating an approximate 30% effective tax.

我們預計全年的有效稅收約為 30%。

Adjusted EPS, which excludes amortization, stock-based compensation and other nonrecurring items was $0.27 per share for the current quarter compared to $0.26 per share in the first quarter of 2023.

本季調整後每股盈餘（不包括攤銷、股票薪酬和其他非經常性項目）為 0.27 美元，而 2023 年第一季為每股 0.26 美元。

Adjusted EPS grew 4% over the prior year quarter despite nearly $16 million additional shares in the share count due to the completion of our DCAC. process over the second and third quarters of 2023.

儘管由於 DCAC 的完成，股票數量增加了近 1,600 萬美元，但調整後每股收益比去年同期增長了 4%。 2023 年第二季和第三季的流程。

We delivered $42 million of adjusted free cash flow for the quarter, which includes a $22 million adjustment for the resolution of the plus pass matters on an after tax cost basis, 45% conversion of adjusted EBITDA was driven by strong operating performance at over $10 million of collections that were received in early January.

本季我們交付了4,200 萬美元的調整後自由現金流，其中包括在稅後成本基礎上為解決plus pass 問題而進行的2,200 萬美元調整，調整後EBITDA 的45% 轉換是由超過1,000 萬美元的強勁營運業績推動的一月初收到的藏品。

Don't want to sound.

不想出聲。

Turning to Slide 5.

轉到投影片 5。

We generated $376 million of adjusted EBITDA on approximately $835 million of revenue for the trailing 12 months representing a 45% adjusted EBITDA margin.

我們過去 12 個月的營收約為 8.35 億美元，調整後 EBITDA 為 3.76 億美元，調整後 EBITDA 利潤率為 45%。

Additionally, we generated $164 million of adjusted free cash flow or a 44% conversion of adjusted EBITDA representing $1 of adjusted free cash flow per share trailing 12.

此外，我們還產生了 1.64 億美元的調整後自由現金流，即調整後 EBITDA 的 44% 轉換率，相當於 12 年來每股調整後自由現金流的 1 美元。

Moving to Commercial Services on Slide 6, we delivered revenue of about $96 million in the first quarter increasing $10 million or 12% year over year.

轉到幻燈片 6 上的商業服務，我們在第一季實現了約 9,600 萬美元的收入，年增 1,000 萬美元，即 12%。

Rack tolling revenue increased 10% or about $6 million over the same period last year, driven by robust travel volume and increased rental rates.

在強勁的出行量和租金上漲的推動下，貨架通行費收入比去年同期成長了 10%，約 600 萬美元。

Additionally, our FMC business grew 25% or about $3 million year over year, driven by the enrollment of new vehicles and tolling growth from existing FMC customers.

此外，在新車註冊和現有 FMC 客戶通行費成長的推動下，我們的 FMC 業務年增 25%，約 300 萬美元。

First quarter.

第一季。

Adjusted EBITDA in commercial services was $61 million, representing 14% year over year.

商業服務業調整後 EBITDA 為 6,100 萬美元，年增 14%。

Adjusted EBITDA margins of about 63%, a 90 basis points increase over the first quarter of last year were largely driven by the continued strength of rack, tolling and execution of our growth initiatives.

調整後的 EBITDA 利潤率約為 63%，比去年第一季成長 90 個基點，這主要是由於我們的成長計畫的持續強勁的機架、收費和執行。

Let's turn to slide 7, and we'll take a look at the results of the government solutions business, driven primarily by growth outside of our largest customer, New York City service revenue increased by $7 million or 8% over the same period last year to $90 million for the quarter.

讓我們轉向幻燈片 7，我們將看一下政府解決方案業務的結果，主要受到我們最大客戶之外的增長的推動，紐約市服務收入比去年同期增長了 700 萬美元，即 8%該季度達到9000萬美元。

Product revenue was about $4 million for the quarter and was driven primarily by international programs.

該季度的產品收入約為 400 萬美元，主要由國際項目推動。

Adjusted EBITDA was $29 million for the quarter, representing margins of 31%.

該季度調整後 EBITDA 為 2,900 萬美元，利潤率為 31%。

The reduction in margins versus the prior year is primarily due to slightly increased spending on business development efforts as well as a $2 million one-time benefit for a contract amendment in the first quarter of 2023.

利潤率較前一年下降的主要原因是業務開發支出略有增加，以及 2023 年第一季合約修訂帶來的 200 萬美元一次性收益。

Let's turn to Slide 8 for the results of T. two systems, which is our parking solutions business, we generated revenue of $20 million and adjusted EBITDA of approximately $3 million for the quarter.

讓我們轉向幻燈片 8，查看 T.two 系統（我們的停車解決方案業務）的結果，該季度我們創造了 2000 萬美元的收入，調整後的 EBITDA 約為 300 萬美元。

Software and Services sales increased 5% over the prior year quarter, slightly offset by a $1 billion year-over-year reduction in product revenue for the quarter.

軟體和服務銷售額比去年同期成長 5%，但本季產品營收年減 10 億美元略有抵銷。

This decrease was expected based on the transition we're seeing from hardware to software and mobile solutions before I close out the financial review of the quarter, I'd like to give you an update on where we stand on the material weakness we described in our 2023 10-K.

在我結束本季度的財務審查之前，我們預計這一下降是基於我們從硬體到軟體和行動解決方案的轉變，我想向您介紹我們對我們在我們的 2023 年 10 公里賽。

In our 10-K, we described several deficiencies regarding IT general control gaps, which aggregated for material weakness last year.

在我們的 10-K 中，我們描述了有關 IT 一般控制差距的幾個缺陷，這些缺陷在去年就構成了重大缺陷。

While our remediation work is materially complete, the new controls are required to operate for a sufficient length of time and will undergo additional testing to ensure that they are operating at.

雖然我們的修復工作已基本完成，但新的控制裝置需要運行足夠長的時間，並將接受額外的測試以確保它們正常運作。

And we'll continue to keep you updated on our progress and we remain confident you are correct.

我們將繼續向您通報我們的最新進展，我們仍然相信您是對的。

Okay.

好的。

Let's turn to Slide 9 and discuss the balance sheet and take a little bit closer look at leverage.

讓我們轉向投影片 9 來討論資產負債表，並仔細研究槓桿率。

As you can see, we ended the quarter with a net debt balance of $903 million represents resulting in net leverage of 2.4 times.

正如您所看到的，本季末我們的淨債務餘額為 9.03 億美元，這意味著淨槓桿率為 2.4 倍。

At quarter end, we have maintained significant liquidity with our undrawn credit revolver.

截至季末，我們透過未提取的信用循環貸款保持了大量的流動性。

Our gross debt balance at year end stands at about $1.1 billion, of which approximately $700 million is floating rate debt.

年末我們的總債務餘額約為 11 億美元，其中約 7 億美元是浮動利率債務。

As we've discussed in the past, our notional hedge of approximately $675 million covers about 95% of our current floating debt totals with a full fixed rate swap that's cancelable at our option.

正如我們過去所討論的，我們約 6.75 億美元的名義對沖覆蓋了我們當前浮動債務總額的約 95%，並且我們可以選擇取消全額固定利率掉期。

Before I move on to 2024 guidance, I wanted to provide a brief update on our thinking around long-term leverage targets.

在繼續討論 2024 年指導之前，我想先簡單介紹一下我們對長期槓桿目標的看法。

We have revised our long-term net leverage target from the prior 3.5 times to an updated target of three times net leverage.

我們已將長期淨槓桿目標從先前的 3.5 倍修改為 3 倍淨槓桿的更新目標。

Recognizing that in periods of M&A activity, we may temporarily and modestly exceed that level.

認識到在併購活動期間，我們可能會暫時且適度地超過該水平。

This updated view is consistent with our commitment to deliver value to our shareholders through a disciplined and flexible capital allocation strategy.

這項更新的觀點與我們透過嚴格且靈活的資本配置策略為股東創造價值的承諾是一致的。

And we believe this new lower leverage target level is more contemporary with current market trends.

我們相信這個新的較低槓桿目標水準更符合當前的市場趨勢。

Okay.

好的。

Let's turn to slide 10 and have a look at full year 2024 guidance based on our first quarter results and our outlook for the remainder of the year, we are increasing our revenue guidance from the prior range of $865 million to $880 billion to the upper end of that range.

讓我們轉向幻燈片 10，根據我們第一季的業績和對今年剩餘時間的展望來看看 2024 年全年指引，我們正在將收入指引從之前的 8.65 億美元提高到 8800 億美元的上限那個範圍的。

We are increasing our adjusted EBITDA guidance from the prior range of $395 million to $405 million.

我們將調整後的 EBITDA 指引從先前的 3.95 億美元提高到 4.05 億美元。

So the upper end of that range.

所以該範圍的上限。

We are increasing our adjusted EPS guidance from the prior range of $1.15 to $1.20 per share to the upper end of that.

我們將調整後每股盈餘指引從先前的每股 1.15 美元至 1.20 美元上調至該上限。

And lastly, there is no change to our prior adjusted free cash flow guidance of $155 million to $165 million are our expected net leverage at year end and primary influencing factor to raise guidance after the first quarter was strong travel outlook from the major year to date, TSA volume has been about 106% of 2023, and we are anticipating a strong spring and summer travel in terms of payments for the rest of the year.

最後，我們先前調整後的 1.55 億美元至 1.65 億美元的自由現金流指引沒有變化，這是我們年底的預期淨槓桿率，也是在第一季度旅遊業前景強勁之後提高指引的主要影響因素，TSA交易量約為2023 年的106%，我們預計今年剩餘時間的春季和夏季旅行支付量將強勁。

We continue to anticipate revenue and adjusted EBITDA to increase sequentially in the second and third quarters.

我們繼續預計第二季和第三季的營收和調整後 EBITDA 將連續成長。

However, as we experienced in both 2022 and 2023, we expect the strongest sequential growth in the second quarter was slower sequential growth in the third quarter due to travel demand shifting forward in the year, consistent with historical trends, we would then expect a modest reduction to revenue and adjusted EBITDA in the fourth quarter.

然而，正如我們在2022 年和2023 年經歷的那樣，我們預計第二季度最強勁的環比增長將是第三季度較慢的環比增長，這是由於當年旅行需求向前轉移，這與歷史趨勢一致，因此我們預計第二季的環比成長將適度放緩。

Adjusted EBITDA margins are expected to follow sequential revenue trends.

調整後的 EBITDA 利潤率預計將遵循連續的收入趨勢。

Commercial Services having the largest influence on the sequential growth rates will follow the same trends as the consolidated company and Government Solutions.

對環比成長率影響最大的商業服務將遵循與合併後的公司和政府解決方案相同的趨勢。

We expect modest sequential revenue growth over the balance of the year.

我們預計今年剩餘時間收入將出現溫和的環比成長。

And lastly, parking solutions revenue is expected to deliver mid-single digit total revenue growth.

最後，停車解決方案收入預計將實現中個位數的總收入成長。

As we discussed on our quarter earnings call, temporary reduction in revenue growth is driven by strong demand in SaaS and services, offset by a reduction in onetime product sales as the industry transitions to a focus on software and mobile solutions.

正如我們在季度財報電話會議上討論的那樣，收入增長的暫時下降是由SaaS 和服務的強勁需求推動的，但隨著行業轉向軟體和行動解決方案，一次性產品銷售的減少抵消了這一影響。

We expect comparable adjusted EBITDA margins in the second quarter as compared to first quarter performance, followed by an increase in second half margins.

我們預計第二季的調整後 EBITDA 利潤率將與第一季的業績相比，隨後下半年的利潤率將有所增加。

Over the long term, we expect parking solutions to return to high single digit growth as we execute our SaaS and transactional revenue growth strategies other key assumptions supporting our adjusted EPS and adjusted free cash flow outlook can be found on slide 11.

從長遠來看，隨著我們執行SaaS 和交易收入成長策略，我們預計停車解決方案將恢復到高個位數成長。幻燈片11 中找到。

In summary, we had a strong start to the year, and I'm confident in our ability to deliver on our increased 2024 outlook.

總之，我們今年開局良好，我對我們實現 2024 年展望的能力充滿信心。

We have strong operating momentum in the business enabled by secular growth drivers and favorable business trend.

由於長期成長動力和有利的業務趨勢，我們的業務擁有強勁的營運動力。

We're focused on execution and operational excellence to deliver continued solid performance.

我們專注於執行和卓越運營，以提供持續穩定的業績。

This concludes our prepared remarks.

我們準備好的演講到此結束。

Thank you for your time and attention.

感謝您的時間和關注。

At this time, I'd like to invite Constantine to open the line for any questions.

現在，我想邀請康斯坦丁開通熱線詢問任何問題。

Over to you, Constantine.

交給你了，康斯坦丁。

Thank you very much.

非常感謝。

Ladies and gentlemen, we will now begin the question and answer session.

女士們、先生們，我們現在開始問答環節。

If you have a question, please press star followed by the number one on your touchtone phone.

如果您有疑問，請按按鍵式電話上的星號，然後再按數字 1。

You will hear a prompt that your hand has been raised.

您將聽到提示音，表示您已舉手。

Should your which wish to decline from the polling process.

如果您希望拒絕參與投票過程。

Please press star, followed by the number two.

請按星號，然後按數字 2。

If you're using a speakerphone, please lift the handset before pressing any keys.

如果您使用免持電話，請在按任何按鍵之前拿起聽筒。

Your first question comes from the line of Faiza Alwy from Deutsche Bank.

你的第一個問題來自德意志銀行的 Faiza Alwy。

Please go ahead.

請繼續。

Yes, hi.

是的，嗨。

Thank you so much on.

非常感謝您。

So first, just wanted to talk about the raised guidance on Craig.

首先，我想談談對克雷格提出的指導。

I know you you mentioned sort of the travel outlook and that was a factor in the raised guidance for then.

我知道您提到了旅行前景，這是當時提出指導意見的因素。

And you also mentioned sort of additional potential contracts on the government side.

您還提到了政府方面的一些額外的潛在合約。

So just wanted a little bit more color in terms of how we should think about about the risk guidance and whether any incremental recurring revenue we should expect an incremental recurring revenue on the government services side as well.

因此，我們只是想在如何考慮風險指導以及是否有增量經常性收入方面有更多的色彩，我們是否應該期望政府服務方面也有增量經常性收入。

Yes, sure.

是的，當然。

Thank you, Faiza.

謝謝你，法伊莎。

So I think I'll give you a little more detail on how we think about that.

所以我想我會向您提供更多關於我們對此的看法的細節。

So if you take it, let's just use revenue for simplicity.

因此，如果您接受的話，為了簡單起見，我們只使用收入。

If we look at the midpoint of the previous guidance go into the high end of that range, that's an increase of you know, and $5 million to $10 million.

如果我們看一下之前指導的中點，進入該範圍的高端，那就是增加了 500 萬美元到 1000 萬美元。

Okay.

好的。

The vast majority of that increase in the guidance is in commercial services due to the increase in travel, right?

由於旅行的增加，指導中的絕大多數增長來自商業服務，對吧？

We saw that come through as the TSA came in a couple of points higher than we anticipated in the first quarter as we take that out for the remainder of the year.

我們看到這一點得到了實現，因為 TSA 第一季的表現比我們的預期高出幾個百分點，而我們在今年剩餘時間內將其剔除。

And I think that raises our full year outlook on TSA throughput by about 0.5 to 2-point.

我認為這將我們對 TSA 全年吞吐量的展望提高了約 0.5 至 2 個百分點。

Somewhere in that GES is pretty much on the service side in the same spot that we talked about last time, which I do think we're going to see the low end of high single digit growth for offer GS service this year.

其中，GES 幾乎處於服務方面，與我們上次討論的位置相同，我確實認為今年我們將看到 GS 服務的高個位數增長的低端。

What we talked about in terms of ARR., we continue to see great progression and not in the state of Florida.

我們談到的 ARR 方面，我們繼續看到巨大的進步，但佛羅裡達州卻沒有。

And overall, it's all about when that revenue actualize.

總的來說，這一切都取決於收入何時實現。

So we don't have a lot of notice to proceeds on those that revenue will come into the business either in the fleet very late part of this year or potentially into 2025.

因此，我們對那些收入將在今年稍後或可能到 2025 年進入該業務的收入沒有太多關注。

That's why it's not necessarily a factor in increasing the revenue guidance for 2024.

這就是為什麼它不一定是增加 2024 年收入指引的因素。

But I think it's a very good indication and what the business can deliver going forward.

但我認為這是一個非常好的跡象，顯示企業未來可以提供什麼。

Great.

偉大的。

That's very helpful.

這非常有幫助。

Thank you.

謝謝。

And then just a question on capital allocation.

然後是關於資本配置的問題。

You did lower your leverage target and you mentioned sort of your opportunity to potentially buyback stock.

您確實降低了槓桿目標，並且提到了潛在回購股票的機會。

So just wanted to understand, you know, do you need do you want to reach that target first before you buy back stock?

所以只是想了解，你知道，在回購股票之前你是否需要先達到該目標？

Or should we expect you to be actively buying back stock, you know, at this point and you sort of want to get to that leverage by the by the end of the year.

或者我們是否應該期望您積極回購股票，您知道，在這一點上，您希望在年底前達到這種槓桿作用。

So just talk about some of your thinking process around capital allocations.

那麼請談談您對資本配置的一些思考過程。

Yes, thanks again for the question.

是的，再次感謝您的提問。

By the way I'm thinking about we're going to remain balanced as we've been in the past.

順便說一句，我在想我們將像過去一樣保持平衡。

You know, we have that open authorization, which is there for a reason.

您知道，我們擁有開放授權，這是有原因的。

And when we look at what I could say on the M&A side, as we look out at the market today, there's certainly more processes and more assets that are actually showing up on screen than there were right.

當我們看看我在併購方面可以說的話時，當我們觀察今天的市場時，螢幕上實際顯示的流程和資產肯定比正確的要多。

So it's really hard to kind of to kind of dial in on that on which one would come first, I if I guess I got a 50% chance of being wrong.

所以真的很難確定哪一個會排在第一位，如果我猜我有 50% 的可能性是錯的。

So I won't I won't do that.

所以我不會 我不會那樣做。

But what I would say is, as we've looked at it in totality, the 3.5 times net leverage was very contemporary view for the company two years, right?

但我想說的是，正如我們從整體來看的那樣，3.5 倍的淨槓桿對於該公司兩年來說是非常現代的觀點，對吧？

And as we look out today with what we've seen in rates and how we've seen that perform and also what we're seeing on the screen in terms of M&A, we think that three times is the right leverage for the Company and remember that that three times is a long-term target.

當我們今天觀察我們在利率中看到的情況、我們看到的表現以及我們在螢幕上看到的併購方面的情況時，我們認為三倍是公司的正確槓桿，並且請記住，三倍是一個長期目標。

So hopefully it came out in the prepared remarks, right?

所以希望它能在準備好的發言中出現，對嗎？

We still could go lower that for a period, right?

我們仍然可以在一段時間內降低這個水平，對吧？

But as we've talked about in the past, with the cash generation of the Company, we have the ability to delever over a period of quarters and come back to that level point now being three versus 3.5 that we talked about.

但正如我們過去談到的，隨著公司現金的產生，我們有能力在幾個季度內去槓桿化，並回到我們談到的現在的水平，即 3 比 3.5。

It may be Tim too.

也可能是蒂姆。

Got it.

知道了。

Thank you so much.

太感謝了。

Your next question is from the line of Daniel Moore from CJS Securities.

您的下一個問題來自 CJS 證券的 Daniel Moore。

Please go ahead.

請繼續。

Thank you and thanks for the color, Dave and Craig, maybe to drill down on commercial services a little bit and not necessarily every quarter, but just multiple quarters now, it's another double-digit quarter double-digit growth quarter on top of it, tough difficult comp.

謝謝戴夫和克雷格的顏色，也許要深入研究商業服務，不一定每個季度，但現在只是多個季度，這是另一個兩位數季度兩位數增長的季度，艱難的困難比較。

Clearly, we've cycled past the pandemic recovery.

顯然，我們已經度過了疫情復甦期。

So obviously, TSA volumes help quite a bit.

顯然，TSA 數量有很大幫助。

When you think about the algo, what continues to outperform expectations is it attachment rates or uptake on your services on rental contracts, more toll roads shift to cashless?

當您考慮演算法時，繼續超出預期的是什麼是租賃合約上的附加率或服務使用率，更多的收費公路轉向無現金？

What's sort of maybe trending better than maybe a higher single digit algo would indicate.

可能趨勢比更高個位數演算法所顯示的更好。

Right, right.

是的是的。

So I still think come to totally understand what you're asking.

所以我仍然認為完全理解你在問什麼。

So let me start by saying that high single digit is still is still the growth target, even with the increased guidance for commercial services.

因此，首先我要說的是，即使商業服務的指導力度增加，高個位數的成長目標仍然是成長目標。

And I think that that rubric looks a lot like it did when we talked last quarter, right.

我認為這個標題看起來很像我們上個季度討論時的樣子，對吧。

So about half of that half of that high single digit growth, let's build it from zero is coming from the secular tailwinds.

因此，讓我們從零開始的高個位數成長中，大約有一半來自長期的順風。

So this is toll roads.

所以這是收費公路。

These are of transition from sorry, additional toll road transition from barrier based cashless roads predominantly in United States and then continued rollout of the all-inclusive pricing box.

這些是從遺憾的過渡，從主要在美國基於障礙的無現金道路過渡到額外的收費公路，然後繼續推出全包定價盒。

And then the other half of that growth is split between two pieces.

然後，增長的另一半被分成兩部分。

That's the growth initiative side.

這是成長主動性方面。

And we've talked about the strength in the FMC business, mostly coming from increased utilization at fleets and then some growth in Europe as well to then the remaining 25% or half of the half is coming from TSA.

我們談到了 FMC 業務的優勢，主要來自機隊利用率的提高，然後是歐洲的一些成長，然後剩下的 25% 或一半來自 TSA。

That's what we said three months ago.

這就是我們三個月前所說的。

I think maybe today it's a little bit more towards TSA than other growth initiatives, just given the outperformance in the in the first quarter, but that rubric about 50% for the tailwinds and then the other 50% split between TSA and growth initiatives remains intact from what we discussed last time.

我認為，考慮到第一季的優異表現，今天可能比其他成長計畫更傾向於 TSA，但大約 50% 的順風車比例，然後 TSA 和成長計畫之間的其他 50% 的比例保持不變。我們上次討論的內容來看。

Makes sense.

說得通。

And then on the Government Solutions side, I think I can back into the math, but just any more color on some of the investments you're making in terms of the enhancing customer facing platforms, more generally, what it is you're you're looking to accomplish and then how much how long will that incremental expense last or was it sort of a one-time?

然後在政府解決方案方面，我想我可以回到數學上，但只是對您在增強面向客戶的平台方面所做的一些投資進行更多的描述，更一般地說，您是什麼？的目標，那麼增量支出會持續多久，還是一次性的？

Thanks.

謝謝。

Yes, Dan, it's David.

是的，丹，是大衛。

So I mean, basically, the we're really excited for the Government Solutions business.

所以我的意思是，基本上，我們對政府解決方案業務感到非常興奮。

There's a lot of really great things going on that are have been buoyed by an ongoing sort of legislative opening across the country and to the investments is which is our platform over the history of the Company.

全國各地持續不斷的立法開放推動了許多真正偉大的事情的發生，這也是我們公司歷史上的投資平台。

We've done lots of acquisitions.

我們已經進行了很多收購。

And when you do that, you end up with multiple platforms.

當你這樣做時，你最終會得到多個平台。

And so this is an opportunity to one consolidate from several platforms to one or two and two to modernize that and reduce our ongoing cost of ownership of the platform.

因此，這是一個機會，可以將多個平台整合為一個或兩個再兩個，以實現現代化並降低我們持續的平台擁有成本。

So we can be really much more scalable in the future and that's going to be ongoing.

因此，我們未來確實可以更具可擴展性，而且這將持續下去。

We would anticipate that's going to be pretty much the bulk of this year as it had been and probably go into maybe the first part of next year as well.

我們預計這將是今年的大部分時間，而且可能會持續到明年上半年。

Perfect.

完美的。

I'll jump back with a follow-up.

我會跳回來跟進。

Thank you.

謝謝。

Your next question comes from the line of Keith, so from Northcoast Research.

你的下一個問題來自北海岸研究中心的基斯。

Please go ahead.

請繼續。

Great.

偉大的。

Thank you.

謝謝。

Congratulations, guys.

恭喜你們，夥伴們。

On a good quarter in terms of the Government Solutions segment, perhaps talk a little bit about the outperformance in the quarter.

在政府解決方案領域的一個好季度中，也許可以談談該季度的優異表現。

I'm assuming these are unrelated to the positive legislation developments that we had last year, but are these a mix of smaller engagements or reserved weighted down by just a few different agencies?

我假設這些與我們去年的積極立法進展無關，但這些是較小的參與的組合還是僅由幾個不同機構壓低的保留？

I think it's some it's not as much from then I think where you're saying it's not from the TAM that we just opened, we are starting to win some of those, which is really exciting, especially in Florida, but off the tail of that is going to be a couple of quarters away before you start seeing the revenue.

我認為從那時起就沒有那麼多了，我想你所說的不是我們剛剛開業的 TAM，我們開始贏得其中一些，這真的很令人興奮，特別是在佛羅裡達州，但在距離您開始看到收入還需要幾個季度的時間。

This goes back to the team, really focusing on the wins that we got last year and the customer expansions that we did last year alongside them, some of that on some international wins as well.

這要追溯到團隊，真正專注於我們去年的勝利以及我們去年與他們一起進行的客戶擴張，其中一些還涉及一些國際勝利。

Great.

偉大的。

And actually following up on that on the international front International, that area for government solutions.

實際上，在國際領域，即政府解決方案領域，正在跟進這一問題。

We've talked a lot about in the past, but perhaps can you provide a little context or color about the size of the international and the opportunities there internationally growing in line with domestic highly kind of compare from a growth trajectory?

我們過去已經討論了很多，但也許您可以提供一些關於國際規模的背景或色彩，以及國際成長與國內成長軌跡高度一致的機會嗎？

Yes.

是的。

I mean, if you look globally, it's a decent sized market in many places, it's a hardware only market.

我的意思是，如果你放眼全球，很多地方都是一個規模相當大的市場，這是一個純硬體市場。

So we've really focused in the areas where there's a service component because that's where kind of our skill set and expertise is which really lends itself for the most part, not exclusively, but for the most part in North America.

因此，我們真正關注的是有服務組件的領域，因為我們的技能和專業知識在很大程度上（不是唯一的）真正適合北美的領域。

So Canada, you've got a little bit in Europe and Australia are the primary places where that exists.

因此，加拿大、歐洲和澳洲是主要存在這種情況的地方。

So we feel really good about those markets that we're in, and we'll continue to look for kind of the same approach, which is where we may have red light or speed in some countries, we may look to expand that as well as look for opportunities to expand to a service model versus in a hardware-only model.

因此，我們對我們所處的這些市場感覺非常好，我們將繼續尋找相同的方法，這就是我們在某些​​國家/地區可能遇到紅燈或超速的情況，我們也可能會尋求擴大這一範圍尋找機會擴展到服務模型而不是純硬體模型。

But right now, the North American market is growing so fast.

但目前，北美市場成長如此之快。

We've got plenty to focus on right here no.

我們這裡有很多值得關注的事情。

Great.

偉大的。

Thank you.

謝謝。

Appreciate it.

欣賞它。

Your next question is from the line of Louie DiPalma from William Blair.

您的下一個問題來自威廉布萊爾 (William Blair) 的路易迪帕爾瑪 (Louie DiPalma)。

Please go ahead.

請繼續。

David, Craig and Mark.

大衛、克雷格和馬克。

Good afternoon.

午安.

Hey, Louie.

嘿，路易。

Hey, Louie.

嘿，路易。

You announced strong government bookings with the $10 million of ARR on incremental awards and over the past year has been well documented that there has been industry momentum for school zone speed cameras across the U.S., but along these lines, have you also witnessed any change in sentiment for red light cameras and has the overall demand for red light cameras improved.

你們宣布了政府的大力預訂，並提供了1000 萬美元的ARR 增量獎勵，並且在過去的一年裡，有充分的證據表明，美國各地學校區域超速攝像頭的行業發展勢頭強勁，但沿著這些思路，您是否也見證了以下方面的任何變化：紅燈攝影機的市場情緒以及對紅燈攝影機的整體需求有所改善。

I would say that the overall demand is mostly unchanged.

我想說的是，整體需求基本上沒有改變。

And what I mean by that is for the most part, really the transition to what we call purpose-built enforcement is really the trend, which is, hey, instead of just having something at an intersection, let's go to where the problems are, which are the most important to a community where their precious cargo is, which is around work zones, school zones, school buses.

我的意思是，在很大程度上，向我們所謂的專門執法的過渡確實是趨勢，也就是說，嘿，我們不要只是在十字路口做一些事情，而是讓我們去解決問題所在，對於他們寶貴的貨物所在的社區來說，這是最重要的，這些社區位於工作區、學校區、校車周圍。

And so what I would say is that the red light demand, we've always thought that would be a flat flattish type of business long term.

所以我想說的是，紅燈需求，我們一直認為，從長遠來看，這將是一個持平的業務類型。

I think it's actually up a little bit, and I would anticipate it to stay there because I think the other ones are one more meaningful to the communities and also legislatively a bit more palatable.

我認為它實際上上升了一點，我預計它會保持在那裡，因為我認為其他的對社區更有意義，而且在立法上也更容易接受。

That makes sense.

這就說得通了。

And yes, I was just thinking about how there is proposed legislation to dramatically expand the The New York City Redlake program.

是的，我只是在考慮如何擬議立法來大幅擴大紐約市紅湖計畫。

And I was wondering that was part of a nationwide trend for exits, more one-off.

我想知道這是全國退出趨勢的一部分，而且是一次性的。

(multiple speakers) Yes, granted, it's not in legislation.

（多名發言者）是的，當然，這不在立法中。

Yes, it's a good point.

是的，這是一個好點。

New York, obviously has really embraced the benefits of automated enforcement, and they are often a trendsetter for other areas.

紐約顯然已經真正接受了自動化執法的好處，而且它們往往是其他領域的潮流引領者。

But that could go quite slowly.

但這可能會進展得很慢。

So I wouldn't say that's a harbinger of immediate transition to red light expansion, but it could be something that means something in the future.

因此，我不會說這是立即過渡到紅燈擴展的預兆，但它可能對未來有意義。

Great.

偉大的。

And for Craig, you may have answered this in one of the prior answers.

對於克雷格來說，您可能已經在先前的答案之一中回答了這個問題。

But when are you targeting for the migration to be finished from the legacy platforms onto the new VeriMed mobility operating system, should we expect that expenses will be elevated throughout the rest of the year?

但是，您的目標是何時完成從舊平台到新 VeriMed 行動作業系統的遷移，我們是否應該預期今年剩餘時間的費用將會增加？

Or is that something that you expect to finish in the next couple of quarters?

或者這是您預計在接下來的幾個季度內完成的事情？

Yes, I'll do the first part of that, Louise, we expect to have that work completed in 2025, and we will see some incremental expenses if you were to look at dollars year over year.

是的，我會做第一部分，Louise，我們預計這項工作會在 2025 年完成，如果你逐年查看美元，我們會看到一些增量支出。

But I still do expect to keep the margins in the GS business at least flat to 25 basis points up year over year.

但我仍然預計 GS 業務的利潤率將至少保持平穩，比去年同期成長 25 個基點。

Right.

正確的。

So again, you'll see that increase on a dollar for dollar basis, but that increase isn't sure the new system spent as these new TMs, David walked through some of them in his prepared remarks as they go.

同樣，您會看到逐美元增加，但這種增加並不確定新系統是否會像這些新 TM 那樣花費，大衛在準備好的講話中逐一介紹了其中一些。

But right, we need to put salespeople in some of those areas.

但是，我們需要將銷售人員派往其中一些領域。

We need to train folks.

我們需要培訓人員。

We need to attend conferences we haven't been to before.

我們需要參加以前沒有參加過的會議。

So there is also some SG&A that just comes along with the market expanding.

因此，隨著市場的擴大，也會產生一些銷售、管理和管理費用。

So but I think if you take that and roll it all together and put it into the total GS business, we still do expect to be able to hold margins and even increase them up 25 basis points year over year with the spending.

所以，但我認為，如果你將其全部整合到整個 GS 業務中，我們仍然希望能夠保持利潤率，甚至透過支出將其同比提高 25 個基點。

Great.

偉大的。

And then that makes sense and you reiterated the $90 million full year CapEx target, and I may have missed this, but what was CapEx in the first quarter?

然後這是有道理的，你重申了 9000 萬美元的全年資本支出目標，我可能錯過了這一點，但第一季的資本支出是多少？

And is there expected to be any seasonality too.

預計還會有季節性嗎？

Capex throughout the year?

全年資本支出？

It was 15 in the first quarter, Louis, so it is going to ramp up a little bit over that.

路易斯，第一季的數字是 15，所以它會比這個數字稍微增加一點。

We anticipated that that was not a surprise whatsoever.

我們預計這並不令人意外。

I still think it will come in somewhere around the rounds around $90 million for the year.

我仍然認為今年的融資額將在 9,000 萬美元左右。

It does ramp up in the back half.

它確實在後半段有所上升。

That's it for me.

對我來說就是這樣。

Thanks, everyone.

感謝大家。

Just a reminder, if you have any questions, please press star and the number one on your telephone keypad.

請注意，如果您有任何疑問，請按下電話鍵盤上的星號和數字 1。

And your next question is from Dave Koning from Baird.

您的下一個問題來自貝爾德 (Baird) 的戴夫·科寧 (Dave Koning)。

Please go ahead.

請繼續。

Yes, hey, guys, nice job and thank you.

是的，嘿，夥計們，幹得好，謝謝你們。

I guess first of all, the year-over-year growth in commercial was about $10 million.

我想首先，商業收入的年成長約為 1000 萬美元。

And I think you said about $6 million travel, $3 million on FMC on.

我記得你說過大約 600 萬美元的旅行費用，300 萬美元的 FMC 費用。

But then as we go through the year, the FMC. growth gets a little smaller, but this travel stay give or take around that, that $6 million that or maybe even a little better if that if the TSA demand looks good.

但當我們度過這一年時，FMC。成長會稍微小一些，但這次旅行住宿的價格大約是 600 萬美元，如果 TSA 的需求看起來不錯的話，甚至可能會更好一些。

I mean, is that is that kind of how to think about it.

我的意思是，這就是這樣的思考方式嗎？

That is how to think about it.

就是這樣想的。

I think you're really close there.

我認為你真的很接近那裡。

So I expect FMC growth year over year in the second quarter.

因此，我預計 FMC 第二季將年成長。

I expect it again, in the third quarter expected to level out Q4.

我再次預計，第三季將與第四季持平。

So there is a little bit more to go on FMC when I speak.

因此，當我發言時，關於 FMC 的內容還有更多內容要講。

I think the right way to think about PSAs essentially we took what we saw here in the first four months of the year and apply that to the seasonality that we've seen for the last decade over the balance of right.

我認為思考公益廣告的正確方法本質上是我們將今年前四個月的情況應用於我們在過去十年中看到的季節性。

And I'll save you the math on that.

我會省去你的數學計算。

The way that that kind of worked out when we thought at the beginning of year and we talked a few months ago, we said come in before a vis-a-vis, let's remember that 2023 is no perfect comp, either didn't ramp a little bit through 2023.

當我們在年初思考時，幾個月前我們談過，我們說在面對面之前進來，讓我們記住，2023 年不是完美的補償，也沒有提升距離 2023 年還有一點點。

So as we look at the quarters, it looks a little funky, but for the total year, here's how here's how it shook out.

因此，當我們查看各個季度時，它看起來有點奇怪，但就全年而言，情況如下。

We said originally you'd be somewhere between one and 1.1 to 1 or 2?

我們最初說過你會介於 1 和 1.1 到 1 或 2 之間？

Right.

正確的。

I think that if I take what we saw in the first four months of the year, apply that to the back eight months of the year, the total year probably goes up to one or three, maybe a little bit north.

我認為，如果我把今年前四個月的情況應用到今年後八個月，一年的總數可能會增加一到三個月，也許會偏北一點。

That's what's taking what we see today and bringing it forward through the right comps to the end.

這就是我們今天所看到的，並透過正確的比較將其推進到底。

Got you.

明白你了。

Yes, that makes sense.

是的，這是有道理的。

Thank you.

謝謝。

And then maybe my follow-up, just an interesting thing in the cash flow statement.

然後也許是我的後續行動，只是現金流量表中的一個有趣的事情。

The bad debt expense was about $5 million in Q1 and you kind of all through last year was kind of $1.5 million to $3 million per quarter and even before that, so it was a little higher.

第一季的壞帳費用約為 500 萬美元，去年全年每季的壞帳費用約為 150 萬至 300 萬美元，甚至在此之前，所以它有點高。

Was there some to the credit cards used by travelers that were a little harder to collect or what was was?

旅行者使用的信用卡中是否有一些比較難收集的信用卡？

It's a great question and a really good catch on.

這是一個很好的問題，也是一個很好的理解。

It's not let me tell you what's not.

這不是讓我告訴你什麼不是。

And then I'll do my best to tell you what it is, right.

然後我會盡力告訴你它是什麼，對吧。

So what it's not we're not seeing the consumer get weaker, right, because when we saw those come through in the actualized.

所以我們並沒有看到消費者變得更弱，對吧，因為當我們看到這些在現實中實現時。

We had the same question and what we're seeing is transactionally there has been differences and it's not necessarily with the health of the consumer, and it's how we train how we transact it.

我們有同樣的問題，我們看到的是交易上有差異，這不一定與消費者的健康有關，而是我們如何訓練我們的交易方式。

So I think that has come back in line.

所以我認為這已經回歸正常了。

So the way we think about it is that the bet incremental bad debt expense that we saw in the first quarter.

因此，我們的思考方式是我們在第一季看到的增量壞帳費用。

I'm not seeing in the second quarter.

我看不到第二季。

I still need to go do some work and find out exactly what that was.

我還需要去做一些工作並找出到底是什麼。

But I do know that it was not the health of the consumer.

但我確實知道這不利於消費者的健康。

So I think it was a one-time thing that I don't expect to see go forward.

所以我認為這是一次性的事情，我不希望看到它繼續下去。

Got to.

必須。

Thanks for Nice job, guys.

謝謝你們幹得好，夥計們。

Thank you.

謝謝。

Thank you.

謝謝。

Are no further questions at this time.

目前沒有其他問題。

Ladies and gentlemen, this concludes today's conference call and thank you for your participation.

女士們先生們，今天的電話會議到此結束，感謝您的參與。

You may now disconnect.

您現在可以斷開連線。