Verra Mobility Corp (VRRM) 2025 Q2 法說會逐字稿

Good day. Thank you for standing by. Welcome to Verra Mobility's second-quarter 2025 earnings conference call.

再會。感謝您的支持。歡迎參加 Verra Mobility 2025 年第二季財報電話會議。

My name is [James Reyes]. I will be your conference operator today.

我的名字是[詹姆斯·雷耶斯]。今天我將擔任您的會議主持人。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand over the conference to your speaker today, Mark Zindler, Vice President of Investor Relations.

現在，我想將會議交給今天的發言人、投資者關係副總裁馬克辛德勒 (Mark Zindler)。

Thank you. Good afternoon. Welcome to Verra Mobility's second-quarter 2025 earnings call.

謝謝。午安.歡迎參加 Verra Mobility 2025 年第二季財報電話會議。

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 section of our website at ir.verramobility.com.

今天，我們將討論在收盤後發布的新聞稿中宣布的結果以及我們的收益報告，該報告可在我們網站 ir.verramobility.com 的投資者關係部分找到。

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還有 Verra Mobility 的執行長 David Roberts 和我們的財務長 Craig Conti。

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

管理層可能會在電話會議中就未來事件、預期的未來趨勢以及公司預期的未來業績做出前瞻性陳述。我們提醒您，此類聲明並非對未來業績的保證，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 risk factors. These factors are described in our SEC filings. Please refer to our earnings press release and investor presentation for Verra Mobility's complete forward-looking statement disclosure.

由於各種風險因素，實際結果可能與前瞻性聲明中的預測有重大差異。這些因素在我們提交給美國證券交易委員會的文件中有所描述。請參閱我們的收益新聞稿和投資者介紹，以了解 Verra Mobility 完整的前瞻性聲明揭露。

Any forward-looking statements that we make on this call are based on our beliefs and assumptions today. We do not undertake any obligation to update forward-looking statements.

我們在本次電話會議上所做的任何前瞻性陳述均基於我們今天的信念和假設。我們不承擔更新前瞻性陳述的任何義務。

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, quarterly earnings presentation, and investor presentation, all of which can be found on our website at ir.verramobility.com.

最後，在今天的電話會議中，我們將參考某些非 GAAP 財務指標。這些非 GAAP 指標與最直接可比較的 GAAP 指標的對帳包含在我們的收益報告、季度收益報告和投資者報告中，所有這些內容均可在我們的網站 ir.verramobility.com 上找到。

With that, I'll turn the call over to David.

說完這些，我會把電話轉給大衛。

Thank you, Mark. Thanks, everyone, for joining us.

謝謝你，馬克。感謝大家加入我們。

We delivered a strong second quarter, with all key financial measures ahead of our internal expectations. Total revenue for the quarter increased 6% over the same period last year to $236 million, with all three business segments meeting or exceeding their respective internal plan.

我們在第二季表現強勁，所有關鍵財務指標都超出我們的內部預期。本季總營收較去年同期成長 6%，達到 2.36 億美元，三個業務部門均達到或超過了各自的內部計畫。

Adjusted EPS increased 10% over the prior year period, driven by our operating performance, recent share repurchases and the reduction in our interest rate on our term loan debt.

調整後的每股盈餘較上年同期成長 10%，這得益於我們的經營業績、近期的股票回購以及定期貸款債務利率的降低。

Moving on to segment-level financials, Commercial Services second-quarter revenue and segment profit increased about 5% and 4%, respectively, over the prior year period.

從分部財務狀況來看，商業服務第二季營收和分部利潤分別比去年同期成長了約 5% 和 4%。

RAC tolling increased 4% over the prior year period, driven by increased product adoption and higher tolling activity compared to the second quarter of last year. The growth in RAC tolling was partially offset by a decline in FMC revenue of about 2% compared to the second quarter of 2024, primarily due to a combination of customer churn as well as a modest weakness related to enrolled vehicles and tolling activity in early 2Q attributable to macroeconomic factors. We expect incremental weakness in the third quarter and to stabilize and grow from that new level.

由於產品採用率增加以及收費活動較去年第二季增加，RAC 收費較上年同期增加了 4%。與 2024 年第二季相比，RAC 收費的成長被 FMC 收入約 2% 的下降部分抵消，這主要是由於客戶流失以及宏觀經濟因素導致第二季初登記車輛和收費活動略有疲軟。我們預計第三季經濟將逐漸疲軟，並從新的水平開始穩定和成長。

FMC continues to be a core focus area, and we remain very optimistic about solid growth prospects in this business area.

FMC 仍然是我們關注的核心領域，我們對該業務領域的穩健成長前景仍然非常樂觀。

Additionally, as we noted in our press release in early July, Stacy Moser has joined our executive leadership team and will lead Commercial Services. Stacy is a commercially focused executive, bringing strong experience in sales leadership, product development, and international expansion; and will be instrumental in leading Commercial Services into its next phase of growth.

此外，正如我們在 7 月初的新聞稿中指出的那樣，Stacy Moser 已加入我們的執行領導團隊，並將領導商業服務。史泰西是一位專注於商業的主管，在銷售領導、產品開發和國際擴張方面擁有豐富的經驗；並將在帶領商業服務進入下一階段的成長方面發揮重要作用。

Next, moving on to the macro environment and the implications for our Commercial Services business, with consumer confidence levels improving amidst increased increasing clarity on the economic environment, travel demand is stabilizing, albeit at lower levels than our prior forecast.

接下來，談談宏觀環境及其對我們的商業服務業務的影響，隨著經濟環境日益明朗，消費者信心水平不斷提高，旅遊需求正在趨於穩定，儘管低於我們先前的預測。

Second-quarter TSA volume declined about 1% over the second quarter of last year. Year-to-date TSA volume is about the same as last year. As a result of these trends and the commentary from the major airlines and expected demand, we have further reduced our travel volume assumptions for the remainder of 2025 relative to the levels discussed in our first-quarter call.

第二季的 TSA 交易量比去年第二季下降了約 1%。今年迄今的 TSA 交易量與去年大致相同。由於這些趨勢以及主要航空公司的評論和預期需求，我們相對於第一季電話會議上討論的水平進一步降低了 2025 年剩餘時間的旅行量假設。

This is subject to further change. We are closely monitoring the airline industry, which has historically been a good indicator of trends that impact the Commercial Services business.

這可能會進一步改變。我們正在密切關注航空業，從歷史上看，航空業一直是影響商業服務業務趨勢的良好指標。

Moving on to Government Solutions, service revenue increased 7% over the second quarter of 2024. Revenue from New York City, our largest Government Solutions customer was essentially flat year over year as we await the finalization of the renewal contract. Service revenue increased 11% outside of New York City driven by expansion from existing customers and new cities implementing photo enforcement programs.

談到政府解決方案，服務收入比 2024 年第二季成長了 7%。由於我們正在等待續約合約的最終確定，我們最大的政府解決方案客戶紐約市的收入與去年同期基本持平。由於現有客戶的擴張和新城市實施照片執法計劃，紐約市以外地區的服務收入增加了 11%。

Total revenue, which includes international product sales was up about 10% over the prior year quarter, fueled in part by a $3 million increase in product sales compared to the second quarter of 2024.

包括國際產品銷售額在內的總收入比去年同期成長了約 10%，部分原因是與 2024 年第二季相比，產品銷售額增加了 300 萬美元。

A note regarding New York City, we are earnestly working toward finalizing the renewal contract. Upon executing the contract, we will hold an update call to discuss the new contracts, key economic terms and the planned Red Light expansion program.

關於紐約市的說明，我們正在認真努力完成續約合約。合約執行後，我們將召開更新電話會議，討論新合約、關鍵經濟條款和計劃中的紅燈擴建計劃。

Next, I'll discuss the demand for automated photo enforcement, the key driver for our Government Solutions business. We continue to see positive support for photo enforcement programs across the United States.

接下來，我將討論自動照片執法的需求，這是我們政府解決方案業務的主要驅動力。我們繼續看到美國各地對照片執法計劃的積極支持。

During the second quarter, both Colorado and Nevada passed legislation authorizing school bus stop arm enforcement, adding about $40 million in total addressable market. In total, enabling legislation passed over the past two-and-a-half years across the United States has added approximately $225 million of TAM with the potential to expand to over $350 million as further enabling legislation allows in California. Our recent execution against this TAM has been strong.

第二季度，科羅拉多州和內華達州都通過了授權在校車站安裝臂架的立法，為整個潛在市場增加了約 4,000 萬美元。總體而言，過去兩年半來美國通過的授權立法已增加了約 2.25 億美元的 TAM，隨著加州進一步授權立法的允許，這一數字有可能擴大到 3.5 億美元以上。我們最近針對這項 TAM 的執行非常有力。

In the second quarter, we entered into contracted bookings of about $21 million of incremental annual recurring revenue at full run rate, bringing the trailing-12 months total to about $60 million. Notable second-quarter bookings include the Chicago, Illinois speed camera expansion and a five-year renewal, (inaudible) Georgia School Bus to farm expansion Mesa, Arizona speed expansion program and several Florida school zone speed awards.

在第二季度，我們簽訂了約 2,100 萬美元的增量年度經常性收入的合約訂單，以全額運行率計算，使過去 12 個月的總收入達到約 6,000 萬美元。值得注意的第二季訂單包括伊利諾伊州芝加哥的測速攝影機擴展和五年續約、（聽不清楚）佐治亞州校車到農場擴展、亞利桑那州梅薩的測速擴展計劃以及佛羅裡達州的幾個學校區域測速獎勵。

We believe automated enforcement continues to demonstrate its intended effects. We see proof points that drivers are improving their driving behaviors and traffic fatality rates are slowly decreasing. For example, for our own data we built positive indicators when we compare 2024 to 2023, 4th of July holiday travel. Key findings included a 26% decrease in total violations from 2023, 24% fewer speeding tickets and 31% fewer Red Light violations. Most importantly, the data shows that pedestrian deaths were down 4.3% year over year, making the second consecutive annual decline.

我們相信自動化執法將繼續發揮其預期效果。我們看到了司機正在改善駕駛行為並且交通死亡率正在緩慢下降的證據表明。例如，當我們比較 2024 年與 2023 年 7 月 4 日假期旅行時，我們針對自己的數據建立了積極的指標。主要發現包括與 2023 年以來違規總數減少了 26%，超速罰單減少了 24%，闖紅燈違規減少了 31%。最重要的是，數據顯示行人死亡人數較去年同期下降4.3%，連續第二年下降。

But with over 7,700 pedestrian fatalities last year it's a stark reminder that more work needs to be done to improve road safety.

但去年有超過 7,700 名行人死亡，這清楚地提醒我們，需要做更多的工作來改善道路安全。

Moving on to T2, our Parking Solutions business. Total revenue declined about 4% for the quarter, driven by a reduction in product sales as well as professional services revenue. This result was in line with our internal expectations.

接下來是 T2，我們的停車解決方案業務。由於產品銷售額和專業服務收入減少，本季總收入下降約 4%。這結果符合我們的內部預期。

Moving on to our full-year outlook, we are maintaining our full-year 2025 financial guidance. While travel demand appears to be stabilizing, we remain cautious that a further modest decline in travel volume may cause us to trend toward the lower end of the financial ranges as previously provided.

談到全年展望，我們維持 2025 年全年財務指引。雖然旅遊需求似乎正在穩定，但我們仍然保持謹慎，因為旅行量的進一步小幅下降可能會導致我們趨向於先前提供的財務範圍的低端。

Additionally, note that our growth and margin expectations for Government Solutions and T2 remain unchanged as the market for photo enforcement is strong and our Parking business turnaround is showing some early signs of success. We believe these businesses areas are largely unaffected by economic sensitivity.

此外，請注意，由於照片執法市場強勁，並且我們的停車業務轉型顯示出一些早期成功跡象，我們對政府解決方案和 T2 的成長和利潤預期保持不變。我們認為這些業務領域基本上不受經濟敏感性的影響。

Moving on to capital allocation, during the second quarter, our Board of Directors authorized a $100 million stock repurchase program that is available through November 2026. As of the end of second quarter, no repurchases have been made under the new stock repurchase program.

在資本配置方面，第二季度，我們的董事會批准了一項 1 億美元的股票回購計劃，有效期至 2026 年 11 月。截至第二季末，新的股票回購計劃尚未進行任何回購。

Finally, before I close, a reminder that with summer mirroring is closed, please drive safely as kids start going back to school this month.

最後，在我結束之前，我想提醒大家，由於夏季後視鏡檢查已關閉，因此請注意安全駕駛，因為孩子們本月將開始返校。

Craig, I'll turn it over to you to guide us through our financial results and additional details on our 2025 financial outlook.

克雷格，我將把這個任務交給你，請你向我們介紹我們的財務表現以及有關 2025 年財務展望的更多詳細資訊。

Thank you, David, and hello, everyone.

謝謝你，大衛，大家好。

We appreciate you joining us on the call today. Let's turn to slide 4, which outlines the key financial measures for the consolidated business for the second quarter. Our Q2 performance, which included 5% service revenue growth and 6% total revenue growth year over year exceeded our internal expectations.

感謝您今天參加我們的電話會議。讓我們翻到投影片 4，其中概述了第二季合併業務的主要財務指標。我們第二季的業績超出了我們的內部預期，其中服務收入年增 5%，總收入年增 6%。

The service revenue growth, which consists primarily of recurring revenue was driven by increased product adoption and higher tolling activities in the Commercial Services business as well as service revenue growth outside of New York City in the Government Solutions business.

服務收入成長主要包括經常性收入，其推動力包括商業服務業務中產品採用率的提高和收費活動的增加，以及政府解決方案業務中紐約市以外地區的服務收入的增長。

At the segment level, Commercial Services revenue grew 5% year over year; Government Solutions service revenue increased by 7% over the prior year; and T2 Systems SaaS and services revenue was essentially flat compared to the second quarter of 2024.

在細分市場層面，商業服務收入年增 5%；政府解決方案服務收入比上年增長 7%；T2 Systems SaaS 和服務收入與 2024 年第二季度相比基本持平。

Total product revenue was a little over $12 million for the quarter. Government Solutions contributed roughly $9 million in Q2 delivered about $3 million in product sales overall for the quarter.

本季產品總收入略高於 1,200 萬美元。政府解決方案在第二季貢獻了約 900 萬美元，本季產品總銷售額約為 300 萬美元。

Additionally, our consolidated adjusted EBITDA for the quarter was $105 million, an increase of approximately 3% versus last year. We reported net income of $39 million for the quarter, including a tax provision of about $14 million, representing an effective tax rate of approximately 27%.

此外，本季我們的綜合調整後 EBITDA 為 1.05 億美元，較去年同期成長約 3%。我們報告本季淨收入為 3,900 萬美元，其中包括約 1,400 萬美元的稅收準備金，有效稅率約為 27%。

GAAP diluted EPS was $0.24 per share for the second quarter of 2025 compared to $0.20 per share for the prior year period. Adjusted EPS, which excludes amortization, stock-based compensation and other nonrecurring items, was $0.34 per share for the second quarter this year compared to $0.31 per share in the second quarter of 2024, representing a 10% year-over-year growth.

2025 年第二季 GAAP 稀釋每股收益為每股 0.24 美元，去年同期為每股 0.20 美元。調整後每股收益（不包括攤銷、股票薪酬和其他非經常性項目）今年第二季為每股 0.34 美元，而 2024 年第二季為每股 0.31 美元，年增 10%。

The adjusted EPS growth was driven by the increase in adjusted EBITDA, a sustained reduction in interest expense driven by our prior year debt repricing efforts in our share repurchases in 2024. Cash flows provided by operating activities totaled $75 million, and we delivered $40 million of free cash flow for the quarter, in line with our internal expectations.

調整後的每股盈餘成長是由調整後的 EBITDA 的成長所推動的，而利息支出的持續減少則得益於我們在 2024 年股票回購中對上一年債務進行重新定價的努力。經營活動提供的現金流總計 7,500 萬美元，本季我們實現了 4,000 萬美元的自由現金流，符合我們的內部預期。

Turning to slide 5. We generated $407 million of adjusted EBITDA on approximately $906 million of revenue for the trailing 12 months, representing a 45% adjusted EBITDA margin. Additionally, we generated $189 million of free cash flow or a 46% conversion of adjusted EBITDA over the trailing 12 months.

翻到幻燈片 5。過去 12 個月，我們的營收約為 9.06 億美元，調整後 EBITDA 為 4.07 億美元，調整後 EBITDA 利潤率為 45%。此外，我們在過去 12 個月中產生了 1.89 億美元的自由現金流，或調整後 EBITDA 轉換率達到 46%。

Next, I'll walk through the second-quarter performance in each of our three business segments, beginning with Commercial Services on slide 6. CS year-over-year revenue growth was 5% in the second quarter. RAC tolling revenue increased 4% or about $3 million over the same period last year, driven by increased product adoption and tolling activity, partially offset by a 1% decline in travel volume.

接下來，我將介紹我們三個業務部門的第二季業績，從第 6 張投影片上的商業服務開始。CS第二季營收年增5%。受產品採用率和收費活動增加的推動，RAC 收費收入比去年同期增長了 4%，約 300 萬美元，但被 1% 的旅行量下降部分抵消。

Our FMC business declined 2% or about $300,000 year over year, driven by customer churn and macroeconomic weakness related to enrolled vehicles and tolling activity in early Q2. As David mentioned, we anticipate that FMC revenue dollars will further decline in the third quarter and that we expect to stabilize and grow from that level.

我們的 FMC 業務年減 2% 或約 30 萬美元，原因是客戶流失以及與第二季初登記車輛和收費活動相關的宏觀經濟疲軟。正如 David 所提到的，我們預計 FMC 收入將在第三季進一步下降，並且我們預計將從該水平開始穩定和成長。

Commercial Services segment profit increased 4% over the prior year. The CS revenue growth was partially offset by nonrecurring ERP implementation costs.

商業服務部門利潤比上年增加4%。CS 收入的成長被非經常性 ERP 實施成本部分抵銷。

Turning to slide 7. Government Solutions had solid service revenue growth in the quarter, driven by 11% growth outside of New York City. The growth was broad-based across all modalities with particular strength in bustling and school bus stop arm enforcement programs. Total revenue grew 10% over the prior year quarter, benefiting from about $9 million in product sales, which increased by $3 million over the same period last year.

翻到幻燈片 7。本季度，政府解決方案部門的服務收入穩定成長，這得益於紐約市以外地區 11% 的成長。所有形式的執法活動都呈現廣泛增長，尤其是在繁忙路段和校車站臂執法項目中表現尤為強勁。總收入比去年同期成長了 10%，這得益於約 900 萬美元的產品銷售額，比去年同期增加了 300 萬美元。

Government Solutions segment profit was $30 million for the quarter, representing margins of approximately 28%. The reduction in margins versus prior year was primarily due to the mix impact of increased international camera sales, ERP conversion costs and project implementation costs for newly awarded programs.

政府解決方案部門本季獲利為 3,000 萬美元，利潤率約 28%。利潤率較上年同期下降主要是由於國際相機銷售額增加、ERP 轉換成本以及新中標項目的項目實施成本等綜合影響。

Let's turn to slide 8 for a view of the results of T2 Systems. We generated revenue of $20 million and segment profit of approximately $3 million for the quarter. SaaS and services sales were essentially flat compared to the prior year, while product revenue declined 18% or $700,000 compared to 2024.

讓我們翻到第 8 張投影片來查看 T2 Systems 的結果。本季我們的營收為 2,000 萬美元，分部利潤約 300 萬美元。SaaS 和服務銷售額與前一年基本持平，而產品收入與 2024 年相比下降了 18% 或 70 萬美元。

Breaking the T2 and SaaS services revenue down a bit further, recurring SaaS revenue was flat compared to the prior year quarter and offset by a decline in installation and other professional services due to the reduction in product sales over prior quarters. On a year-to-date basis, recurring SaaS revenue has increased low single digits over the same period in 2024.

進一步細分 T2 和 SaaS 服務收入，經常性 SaaS 收入與去年同期相比持平，但因產品銷售額較前幾季下降而導致的安裝和其他專業服務的下降抵消了這一收入。從年初至今，經常性 SaaS 收入與 2024 年同期相比增長了低個位數。

Okay. Let's turn to slide 9 for a view of the balance sheet and net leverage. We ended the quarter with a net debt balance of $893 million, which reflects the strong free cash flow we generated in the first half of the year. Net leverage landed at 2.2x, and we've maintained significant liquidity with our newly expanded $125 million undrawn credit revolver.

好的。讓我們翻到第 9 張投影片來查看資產負債表和淨槓桿。本季末，我們的淨債務餘額為 8.93 億美元，這反映了我們上半年產生的強勁自由現金流。淨槓桿率降至 2.2 倍，並且我們透過新擴大的 1.25 億美元未提取信用循環信貸額度保持了充足的流動性。

Our gross debt balance at year end stands at about $1 billion, of which approximately $690 million is floating rate debt. Okay.

我們年底的總債務餘額約為 10 億美元，其中約 6.9 億美元為浮動利率債務。好的。

Let's now turn to slide 10 and have a look at full-year 2025 guidance. Based on our first half results and our outlook for the remainder of the year, we are reaffirming all guidance measures. As David discussed, our primary consideration in the economic -- in this economic environment is the potential impact to travel demand.

現在讓我們翻到第 10 張投影片，看看 2025 年全年指引。根據我們上半年的業績以及對今年剩餘時間的展望，我們重申所有指導措施。正如大衛所討論的，我們在經濟方面的主要考量——在這種經濟環境下，對旅遊需求的潛在影響。

While we are reaffirming guidance, we would like to highlight that there is a risk of moving to the lower end of the ranges if travel demand worsens from current levels. In the event that the US economy weakens, and we see a material move downward in TSA volume, we will reassess and update the market accordingly.

在我們重申指導方針的同時，我們想強調的是，如果旅行需求從當前水平惡化，則存在轉向較低水平的風險。如果美國經濟疲軟，我們看到 TSA 交易量大幅下降，我們將重新評估並相應地更新市場。

As a reminder, the full-year 2025 guidance ranges provided on our fourth-quarter 2024 earnings call were as follows: we expect total revenue in the range of $925 million to $935 million, representing approximately 6% growth at the midpoint of guidance over 2024. We expect adjusted EBITDA in the range of $410 million to $420 million, representing approximately 3% growth at the midpoint over 2024.

提醒一下，我們在 2024 年第四季財報電話會議上提供的 2025 年全年指引範圍如下：我們預計總收入在 9.25 億美元至 9.35 億美元之間，相當於 2024 年指引中點的成長約 6%。我們預計調整後的 EBITDA 在 4.1 億美元至 4.2 億美元之間，相當於 2024 年中期成長約 3%。

We anticipate an adjusted EPS range of $1.30 to $1.35 per share, and free cash flow is expected to be in the range of $175 million to $185 million representing a conversion rate in the low to mid-40th percentile of adjusted EBITDA.

我們預計調整後的每股盈餘範圍為 1.30 美元至 1.35 美元，自由現金流預計在 1.75 億美元至 1.85 億美元之間，相當於調整後 EBITDA 的 40% 左右的轉換率。

Moving on to the segment level. Government Solutions is expected to generate high single-digit total revenue growth, driven by the expansion of camera installations with existing customers and new customers awarded in fiscal year 2024.

繼續進入細分級別。政府解決方案部門預計將實現高個位數總收入成長，這得益於現有客戶的攝影機安裝擴張以及 2024 財年授予的新客戶。

Recall that this growth forecast includes an expectation of flat service revenue from New York City in 2025 under the legacy contract while we work through negotiations for the renewal contract. We also expect increased product revenue in 2025.

回想一下，這一增長預測包括在我們進行續約談判期間，根據舊合同，紐約市 2025 年的服務收入將保持平穩。我們也預計 2025 年產品收入將會增加。

Taken together, both New York City service and global product sales comprised nearly 40% of total Government Solutions total revenue. The remaining 60% of Government Solutions revenue is expected to grow low double digits overall in 2025. We continue to anticipate that Parking Solutions revenue will be about flat with 2024 levels.

整體而言，紐約市服務和全球產品銷售額佔政府解決方案總收入的近 40%。預計到 2025 年，政府解決方案收入的其餘 60% 將整體實現低兩位數成長。我們繼續預計停車解決方案收入將與 2024 年的水平持平。

We expect SaaS revenue to grow low to mid-single digits, offset by a decline in the installation and professional service revenue on roughly flat product sales. Based on an assumption that travel will be flattish in 2025 compared with 2024, we anticipate Commercial Services growing at the high end of mid-single digits.

我們預計 SaaS 收入將成長低至中等個位數，但由於產品銷售額基本持平，安裝和專業服務收入將有所下降。基於 2025 年旅行量與 2024 年持平的假設，我們預期商業服務成長率將達到中等個位數的高點。

We anticipate CS revenue, adjusted segment profit and margins will improve sequentially in the third quarter, followed by modest declines in the fourth quarter, consistent with historical norms based on travel trends.

我們預計，CS 收入、調整後的分部利潤和利潤率將在第三季度環比提高，然後在第四季度出現小幅下降，這與基於旅遊趨勢的歷史常態一致。

Other key assumptions supporting our adjusted EPS and free cash flow outlook can be found on slide 11.

支持我們調整後每股盈餘和自由現金流前景的其他關鍵假設可以在第 11 張投影片上找到。

Before we close out, I'd like to give you an update on our ongoing ERP implementation. I am pleased to report that the project is on schedule and on budget. We have several smaller processes to transition over the next several quarters, but the most complex portion of the project is largely complete.

在結束之前，我想向您介紹我們正在進行的 ERP 實施的最新情況。我很高興地報告，該項目正在按計劃和預算進行。在接下來的幾個季度中，我們將完成幾個較小的流程的過渡，但該專案最複雜的部分已基本完成。

In closing, we're very pleased with our first half performance. We exhibited solid execution across the board, and we're delivering strong free cash flow and earnings. As we head into the final months of 2025, there's a lot to be excited about. Stabilizing travel trends, finalizing the contract with New York City Department of Transportation and strong demand for automated enforcement.

最後，我們對上半年的表現非常滿意。我們在各方面都表現出了穩健的執行力，並且實現了強勁的自由現金流和收益。隨著我們進入 2025 年的最後幾個月，有很多事情值得興奮。穩定出行趨勢，與紐約市交通局敲定合同，並對自動化執法有強烈的需求。

This concludes our prepared remarks. Thank you very much for joining us on the call today. I'd now like to open the call for questions.

我們的準備好的演講到此結束。非常感謝您今天參加我們的電話會議。現在我想開始提問。

(Operator Instructions)

（操作員指示）

Faiza Alwy, Deutsche Bank.

德意志銀行的 Faiza Alwy。

Great. So I wanted to just flesh out some of your commentary around Commercial Services. And it sounds like there's a few moving parts. First, just on travel, just want to put a finer point on. Are you essentially run rating sort of where Q2 travel funds were or sort of where you -- maybe where you exited 2Q?

偉大的。所以我只是想充實你關於商業服務的一些評論。聽起來好像有幾個活動部件。首先，就旅行而言，我只想談一點細節。您的營運評級基本上與第二季的旅遊資金情況類似，或與您在第二季退出的情況類似？

So just give us a better sense of what you're assuming for travel in the back half. And then secondly, you mentioned -- okay, I'll let you answer that, then I'll follow up.

因此，請讓我們更了解您對後半部分的旅行有何假設。其次，您提到——好的，我讓您回答這個問題，然後我會跟進。

Yes. Thanks. We'll do the first part, first of all, we had a little technical issue at the beginning of the call. Can you hear me okay? It's, Craig.

是的。謝謝。我們將進行第一部分，首先，我們在通話開始時遇到了一點技術問題。你聽見我說話嗎？是的，克雷格。

Yes.

是的。

Excellent. Okay. So if we back up to the end of the first quarter, I'll get to your question, but I want to start with a little context, right? So last time we were on the call, we talked about the guide for the company would still stand if TSA volumes stayed at around flat to last year to down a handful of points, okay? Now bringing that forward three months, we're still in the exact same place.

出色的。好的。因此，如果我們回到第一季末，我會回答你的問題，但我想先從一些背景開始，對嗎？所以上次我們通話時，我們討論瞭如果 TSA 數量與去年持平或下降幾個點，公司的指導方針仍然有效，好嗎？現在將時間提前三個月，我們仍然處於完全相同的位置。

What we saw in the second quarter, the TSA throughput was about 99%. And that stepped up and got a little better in July at just north of 100%.

我們在第二季看到，TSA 的吞吐量約為 99%。而這一數字在 7 月有所上升，並略有改善，剛好超過 100%。

And if you look at it, as David said in the script, on a year-to-date basis, we're right at about 100%. So that's the state of play. I think the other thing that's different is the backdrop or the sentiment on travel is stronger than it was 90 days ago. I think we all heard that from the airlines in the hotels. So now to your question.

如果你看一下，正如大衛在劇本中所說的那樣，從今年迄今為止的情況來看，我們的完成率大約是 100%。這就是目前的情況。我認為另一個不同之處在於，現在的背景或旅遊情緒比 90 天前更加強烈。我想我們都從航空公司和酒店那裡聽說過這個。現在回答你的問題。

What we've done for demand go forward is we've taken in essentially the 2Q exit rate, which is somewhere between 99% and 100% and less that as the throughput rate for the back half of the year, which still puts us within the range of guidance that we set at the beginning of the year, and that's what it looks like the consensus is for travel in the near term in the market today.

對於未來需求，我們所做的就是基本上考慮到第二季度的出境率，該出境率在 99% 到 100% 之間，而下半年的吞吐率則低於該水平，這仍然處於我們年初設定的指導範圍內，而這看起來似乎是當今市場對短期旅行的共識。

All right. Understood. Makes sense. And then just on some of the other moving parts, right? Like you mentioned fleet management, some maybe macroeconomic factors and churn.

好的。明白了。有道理。然後就討論其他一些活動部件，對嗎？正如您所提到的車隊管理，一些可能是宏觀經濟因素和客戶流失。

So give us a sense of -- I mean, it seems pretty small given the revenue amount that you gave us, but -- like is this going to get worse in 3Q? And just give us a bit more color on sort of how -- what needs to happen for things to stabilize in 4Q?

那麼請給我們一個概念——我的意思是，考慮到您給我們的收入金額，這個數字似乎很小，但是——第三季度的情況會變得更糟嗎？能否向我們詳細介紹一下第四季需要採取哪些措施才能穩定下來？

Yes, sure. I think you said it well, Faiza. So yes, there -- we saw a small decrease in our 2Q results. So it was only $300,000 or about 2%, and that was the result of some macroeconomic headwinds and some churn. Now that is going to accelerate as we get into the third quarter.

是的，當然。我認為你說得很好，Faiza。是的，我們看到第二季的業績略有下降。所以它只有 30 萬美元或約 2%，這是一些宏觀經濟逆風和一些客戶流失的結果。隨著進入第三季度，這一進程將會加速。

So we expect that to be fully baked into our run rate by the third quarter. So we'll be down again here in the third quarter. And then I think from a total demand standpoint, that will be the base from which we will then again grow.

因此，我們預計這將在第三季完全融入我們的運行率中。因此，第三季我們的業績將再次下滑。然後我認為從總需求的角度來看，這將是我們再次成長的基礎。

All right. Great. And then just my sort of second question was really around -- it sounds like -- so you raised the guide for Government Solutions. Just give us some color on like what better. Is it just better or earlier execution or conversion of the -- some of the ARR to revenue? Or is it something else?

好的。偉大的。然後我的第二個問題實際上是——聽起來——所以你提出了政府解決方案指南。只要給我們一些顏色看看還有什麼更好的。這是否只是更好或更早地執行或轉換部分 ARR 到收入？還是其他什麼？

I'm sorry, Faiza, are you asking about the commercial activity?

抱歉，Faiza，您問的是商業活動嗎？

No, I was asking about the Government Solutions and the slight guidance raise there. And if you were seeing faster conversion from ARR to revenue or if it was something else that was driving the increase?

不，我問的是政府解決方案以及那裡的輕微指導提高。您是否看到 ARR 到收入的轉換速度加快了，或者是否有其他因素推動了成長？

Yes. As I think about it, there's really broad-based strength, it's across both. So product is going to be higher than we anticipated at the beginning of the year. And that's a bit of a positive and negative, right? So that's positive on the revenue line.

是的。我認為，這確實是一種廣泛的力量，它涵蓋了兩者。因此產品銷售量將高於我們年初的預期。這有一點積極也有一點消極，對吧？所以這對收入來說是正面的。

If I look at the mix of that business, that's going to be a little bit dilutive on the margin line. You could see that in the results in the second quarter. Not materially 100 basis points in the quarter, but still you'll see it.

如果我看一下該業務的組合，我會發現利潤線會受到一點稀釋。您可以在第二季的業績中看到這一點。本季的增幅不會達到 100 個基點，但你仍然會看到它。

And as we go forward and look at the demand for photo enforcement, that honestly has done nothing but accelerate. Throughout the year. So when we started the year, we said high single digits is pretty much what we thought the non-New York City service revenue would grow. We feel comfortable today saying that's going to be in the low double digits.

隨著我們繼續前進，並觀察對照片執法的需求，我們發現這種需求實際上只會加速成長。全年。因此，當我們年初的時候，我們說高個位數的成長基本上就是我們認為紐約市以外的服務收入將會成長的水平。今天我們可以放心地說，這數字將處於兩位數以下。

So the short answer is both of those things. And I think the final piece to that is, if we think about the commercial activity we talk about in terms of loosely define this backlog or what is that ARR we've built up in the last trailing 12 months. That number is sitting at $61 billion. The TTM basis of that six months ago was in the [40s] or [50s], right? So we continue to see the bias of the move to photo enforcement continue to move in the company's favor and we've been capitalized.

所以簡短的回答是這兩件事。我認為最後一點是，如果我們考慮我們所談論的商業活動，那麼我們可以廣泛地定義這個積壓訂單或我們在過去 12 個月中建立的 ARR 是什麼。這個數字是 610 億美元。六個月前的 TTM 基礎是在 [40 年代] 或 [50 年代]，對嗎？因此，我們繼續看到照片執法舉措繼續朝著有利於公司的方向發展，並且我們已經從中獲益。

Daniel Moore, CJS Securities.

丹尼爾·摩爾（Daniel Moore），CJS 證券。

Congrats another solid quarter. I wanted to pull on the string of margins in Government Solutions a little bit. You just gave the color regarding the mix pressure in the quarter. How much setup costs are in that and are sort of in the guide as we think about some of these new opportunities, you generally have to invest a little bit ahead of revenue.

恭喜又一個季度取得豐碩成果。我想稍微利用一下政府解決方案中的利潤空間。您剛剛給出了本季度混合壓力的情況。當我們考慮這些新機會時，其中的設置成本是多少以及在指南中，通常您必須在收入之前進行一點投資。

So I'm getting at is sort of as we think about full-year margins, whether that's a new baseline from which will be flat to up or expand from as we think about kind of fiscal '26 and beyond in the Government Solutions piece of the business?

因此，我想說的是，當我們考慮全年利潤率時，這是否是一個新的基線，從這個基線開始，利潤率將持平、上升還是擴大，因為我們考慮的是 26 財年及以後的政府解決方案業務？

Yes. Thanks, Dan. It's Craig again. Let me answer with a very detailed answer for the quarter and then give you an idea how I think this looks okay. So if I just look at year over year, we're down 250 basis points.

是的。謝謝，丹。又是克雷格。讓我針對本季度給出一個非常詳細的答案，然後告訴你我認為這看起來如何。因此，如果我只看同比數據，我們下降了 250 個基點。

So if you look at that on the face of it, that's a rough number, but let me break it down. About 100 basis points of that is simply mixed. That is we are up 46% in product sales to international customers year over year.

所以如果你從表面上看，這是一個粗略的數字，但讓我來分解一下。其中約 100 個基點只是混合的。也就是說，我們面向國際客戶的產品銷售額較去年同期成長了46%。

I love that. It's just lower margin and it's just lower margin than it in the quarter. So we kind of take that away from the 250. Another 100 basis points, now we've built up 200 of the 250 million is from the ERP cost that we incurred in the second quarter. That's going to hit both CSGS.

我喜歡這個。只是利潤率較低，比本季的利潤率低。所以我們把它從 250 中拿走了。另外 100 個基點，現在我們已經累積了 2.5 億中的 2 億，這來自我們在第二季產生的 ERP 成本。這將對 CSGS 造成打擊。

That was the thrust of the activity. So now we've got 50 basis points left, which is exactly what you asked, that is the incremental, if you will, set up cost.

這就是此次活動的重點。所以現在我們還剩下 50 個基點，這正是您所要求的，如果您願意的話，這就是增量設定成本。

Now I hesitate to go up to 2026 simply because we are not yet through contracting with New York City. Once we're done contracting with New York City, I think we can lay all of that out. But what I will tell you to hopefully help you a little bit farther down the path is if we kind of set New York City to the side for a second, the way to think about this is if the business continues to grow outside of New York City at low double digits, that will probably be slightly margin dilutive until we get most of the way through 2026.

現在我猶豫是否要延後到 2026 年，因為我們還沒有與紐約市簽約。一旦我們與紐約市簽訂了合同，我想我們就可以把所有這些都安排好。但是，為了能夠對你們的未來有所幫助，我想告訴你們的是，如果我們暫時將紐約市放在一邊，那麼思考的方式是，如果紐約市以外的業務繼續以較低的兩位數增長，那麼直到 2026 年的大部分時間，這可能會稍微稀釋利潤率。

And what I mean by that is if we go back to the last 12 to 18 months, we talked about the platform consolidation that's going on in GS. That's still going up.

我的意思是，如果我們回顧過去 12 到 18 個月，我們討論了 GS 正在進行的平台整合。這個數字還在上升。

We're still investing in that, not a material year over year amount of money, but it's not like yet. The confluence of that against the low double-digit growth will help us be able to accrete and grow in revenue and maintain margin until that point, I can get that. That's the temporary answer.

我們仍在對此進行投資，雖然逐年投入的資金數量並不大，但至少目前還沒有。這與低兩位數成長的結合將幫助我們增加收入並保持利潤率，直到那時，我可以理解這一點。這是暫時的答案。

Obviously, we'll reset the whole mark once we have the view with where New York City can be.

顯然，一旦我們了解了紐約市的未來走向，我們就會重新設定整個目標。

Perfect. Really helpful. I'm sure the answer is no comment, but any update just in terms of timing around the New York City renewal? Or the finalization --

完美的。真的很有幫助。我確信答案是無可奉告，但是紐約市重建的時間安排方面有任何更新嗎？或最終確定--

Dan, it's David. And no comment seems a bit rude given our long-standing relationship. But what I would say is that we honor the state of the contract that is with our customer. And so we're working toward a resolution. So obviously, sooner than is better, but we'll just -- as soon as it is done, we will announce it and give the all relevant depression to the market.

丹，我是大衛。考慮到我們長期的關係，任何評論都顯得不禮貌。但我想說的是，我們尊重與客戶簽訂的合約。因此我們正在努力尋求解決方案。因此顯然越快越好，但是一旦完成，我們就會宣布，並給市場帶來所有相關的壓力。

I look forward to the call. Lastly, obviously, the balance sheet continues to improve. Leverage ticking down towards 2x. Maybe just touch on M&A pipeline and borrowing position will be more likely to pick up the pace of share buybacks rather than let leverage continue to tick lower below the kind of low end of your target range?

我期待著你的來電。最後，顯然，資產負債表持續改善。槓桿率逐漸下降至 2 倍。也許僅僅觸及併購通路和借貸部位就更有可能加快股票回購的步伐，而不是讓槓桿率繼續低於目標範圍的低端？

Yes. Thanks, Dan. I don't think anything has changed in our strategy that we've laid out, which is we still think to 3x is the level of flight plan for the company. We've got an open share repurchase. We're going to be opportunistic with that.

是的。謝謝，丹。我認為我們制定的策略沒有任何改變，我們仍然認為 3 倍是公司的飛行計畫水準。我們進行了公開股票回購。我們將抓住機會。

But I would just say that M&A activity has really started to pick up.

但我只想說，併購活動確實開始回升。

And so we continue to look at really interesting businesses across multiple segments. And so we'll continue to play our strategy, but only -- we're only going to do a deal when it makes sense for our shareholders. So if not, we'll always go back to investing in the business or potentially buying back shares. So we're going to kind of keep doing exactly what we've been doing.

因此，我們將繼續專注於多個領域真正有趣的業務。因此，我們將繼續執行我們的策略，但只有當交易對我們的股東有意義時，我們才會進行交易。因此，如果沒有，我們將始終重新投資該業務或可能回購股票。因此，我們將繼續做我們一直在做的事情。

Keith Housum, Northcoast Research.

基思·豪瑟姆（Keith Housum），Northcoast Research。

David, I think is in for the first quarter. I recall European operations being called out in CS. And then, of course, you guys had a press release announcing an agreement with [six] during the quarter, I believe it was with Italy. Perhaps maybe you can [dimensionalize] about some of the success you're having with Europe. I understand it's still early stages, but perhaps the contribution and how you think about that over the next year or so.

大衛，我認為他會在第一季任職。我記得歐洲的行動是在 CS 發起的。然後，當然，你們發布了一份新聞稿，宣佈在本季度與[六]達成協議，我相信是與義大利達成的。或許您可以具體談談您在歐洲取得的一些成功。我知道這仍處於早期階段，但也許可以預見未來一年左右的貢獻以及您對此的看法。

Yes. Thanks, Keith. I actually just got back from there a couple of weeks ago and was meeting with customers. And what I would say is as you've been with us for a while, we about the ice stalling. And I would say that there's water on the side of the glass is maybe the best way I describe it is that we are definitely.

是的。謝謝，基斯。事實上，我幾週前剛從那裡回來並與客戶會面。我想說的是，正如您與我們在一起的一段時間一樣，我們一直在談論冰停滯問題。我想說玻璃杯邊上有水，這也許是我描述它的最好方式，我們肯定有。

We are starting to roll out in Italy with some of the customers like gave his budget. The value proposition is compelling to our customers.

我們開始在義大利推出這項服務，一些客戶給了他們的預算。這項價值主張對我們的客戶來說很有吸引力。

And so I think it's starting to -- again, it's not going to be material. I think next year, we'll probably be able to dimensionalize that in terms of total contribution, but we are starting to see multiple deployments in multiple countries.

所以我認為它開始——再說一次，它不會是實質的。我認為明年我們可能能夠從整體貢獻的角度來量化這一點，但我們開始看到多個國家的多次部署。

And so it's actually getting pretty exciting. And the greatest part of that, obviously, Keith, is the customers are telling us that they really like it.

所以這實際上變得相當令人興奮。顯然，基思，最棒的是顧客告訴我們他們真的很喜歡它。

Yes. Congratulations. I know it's been a long haul, and you guys been working hard on that. So good to see. Outside of Italy, is there any other countries that are getting close to doing it as well or as far as long as Italy.

是的。恭喜。我知道這是一個漫長的過程，你們一直在努力。很高興看到。除了義大利以外，還有哪些國家在這方面做得和義大利一樣好或一樣遠？

Yes. So we have -- I believe it's seven countries total. Italy is -- you really wanted -- really one of the bigger ones because it was -- it's moving to cashless. And because of our Pagatelia asset we're able to do transponders in Italy as well as others. So that's part of it.

是的。所以我們有──我相信總共有七個國家。義大利是 — — 你真正想要的 — — 確實是較大的國家之一，因為它 — — 它正在向無現金社會邁進。由於我們擁有 Pagatelia 資產，我們能夠在義大利和其他國家製造轉發器。這就是其中的一部分。

We are also France is the other big one. But we also work in Portugal, the Spain, Ireland, France, Italy. So those are the ones that we're working in today.

我們也是法國，另一個大國。但我們也在葡萄牙、西班牙、愛爾蘭、法國、義大利開展業務。這些就是我們今天正在做的工作。

Okay. And I've got to ask this question more just to make sure we're covering our basis here. But as you guys are adding new cameras to the portfolio here, there's no tariff issues or obligations that we have to worry about impacting costs going forward. Do we.

好的。我必須更多地問這個問題，以確保我們在這裡涵蓋了我們的基礎。但是，由於你們在這裡將新相機添加到產品組合中，因此不存在關稅問題或義務，我們不必擔心會影響未來的成本。我們有嗎？

When you drill that in a little bit more, Keith, in terms of what kind of costs you're talking about?

基思，如果您進一步深入探討一下，您談論的是哪一種成本？

Yes, I'm sorry. In terms of purchasing cameras for the quota enforcement program, as you've been adding new agencies here, are there any tariffs that perhaps will reduce your profit on the cameras?

是的，我很抱歉。在為配額執行計劃購買攝影機方面，由於您在這裡增加了新的機構，是否存在可能會減少攝影機利潤的關稅？

No, I don't think so. I mean if anything, I like where we're heading on the volumes. And I think the other piece is, when we talk about platform consolidation is a multi-year project that's going to bear some fruit for us here in the back half of next year, which is going to work really well with the generation of cameras that we've been buying.

不，我不這麼認為。我的意思是，如果有的話，我喜歡我們在數量上所取得的進展。我認為另一點是，當我們談論平台整合時，這是一個多年的項目，它將在明年下半年為我們帶來一些成果，這將與我們一直在購買的一代相機很好地配合。

So I think I'll say what I said a little bit earlier, Keith, because I think it bears repeating is the business continues to grow in the low double digits, which let me be crystal clear, I've every intention that it will. I certainly hope it does.

所以我想我會重複我之前說過的話，基思，因為我認為值得重複的是，業務繼續以兩位數的低位速度增長，這讓我非常清楚，我完全有意願這樣做。我當然希望如此。

We are going to continue to see those installation costs, small incremental installation costs come ahead of revenue, especially in the greenfield area.

我們將繼續看到這些安裝成本，小幅增量安裝成本超過收入，特別是在綠地區域。

So we talked about David mentioned, Colorado and Nevada, I believe earlier. But outside of that, I don't see anything structural coming down the pike.

所以我們討論了大衛之前提到的科羅拉多州和內華達州。但除此之外，我沒有看到任何結構性的改變。

Louie DiPalma, William Blair.

路易·迪帕爾馬、威廉·布萊爾。

David, Craig and Mark, you have discussed over the past several years, and everybody has witnessed the TAM or the photo enforcement market expanding. And I was wondering, can you provide some commentary on the pipeline in that you announced very strong bookings this quarter and strong bookings over the past trailing 12 months.

大衛、克雷格和馬克，你們在過去幾年中已經討論過了，每個人都見證了 TAM 或照片執法市場的擴張。我想知道，您能否對該頻道提供一些評論，因為您宣布本季度的預訂量非常強勁，並且過去 12 個月的預訂量也很強勁。

But in terms of your bids outstanding and some of the newer markets, are -- how does the RFP process? And do you have more bids outstanding today than you did a year ago? And how is everything translating in terms of bookings converting into actual revenue?

但就你們未完成的投標和一些較新的市場而言——RFP 流程是怎樣的？與一年前相比，您今天未完成的出價是否更多？那麼，預訂如何轉化為實際收入呢？

Yes. So I think Craig had said that we had $60 million of ARR run rate that we've added. So a big picture, Louie, is it's going very well. I think California is sort of our great sign of -- we laid out a playbook. We talked about opening legislation, we were able to support the state and enabling that legislation at a pace that was higher than we would have anticipated.

是的。所以我認為克雷格說過我們增加了 6000 萬美元的 ARR 運行率。所以，路易，整體來說，一切進展順利。我認為加州是我們制定的偉大策略的標誌。我們討論了開放立法，我們能夠支持國家並以超出我們預期的速度推動立法。

We've been able to work with great cities, including San Francisco and Oakland and some of the others.

我們已經能夠與舊金山、奧克蘭和其他一些大城市合作。

And so I would say that all those are starting to translate they are moving toward revenue recognition reasonably well, but that also speaks to the issue that Craig was talking about just a moment ago where we -- when they say go, we start working as fast as we can, but the revenue doesn't start until the cameras turned on.

所以我想說，所有這些都開始轉化為他們正在相當好地走向收入確認，但這也說明了克雷格剛才談到的問題——當他們說開始時，我們就開始盡快工作，但收入直到攝影機打開才開始。

So that's part of that reality. So we're seeing very, very strong pipeline movement, very strong conversion in our win rate, and all that's going to flow down to revenue and the $60 million is certainly an indication of that.

這就是現實的一部分。因此，我們看到了非常非常強勁的通路流動，我們的成功率轉換率非常高，所有這些都將轉化為收入，而 6000 萬美元無疑就是一個證明。

Fantastic. And for the Commercial Business, you discussed the slowdown in travel. And I was wondering. As it relates to the overall algorithm with all things being equal, can investors assume a general 5% alpha outperformance of your revenue growth above travel volumes.

極好的。對於商業業務，您討論了旅遊業的放緩。我很好奇。因為它與所有條件相同的整體演算法相關，所以投資者是否可以假設您的收入成長比旅行量高出 5% 的整體阿爾法表現。

As Craig and David and Mark, you previously discussed how, in addition to travel volumes, there's other variables such as the shift to cashless more toll roads, total inflation and the bundled pricing. But has there been any other slowing for those other secular trends in terms of PAUSE the shift to cashless or increased toll roads? Or are those other secular trends healthy?

正如 Craig、David 和 Mark 所說，你們之前討論過，除了出行量之外，還有其他變量，例如向無現金收費公路的轉變、總體通貨膨脹和捆綁定價。但是，在暫停向無現金支付或增加收費公路的轉變方面，其他長期趨勢是否也出現了放緩？或者其他長期趨勢是健康的嗎？

Louie, they are. So let me try to answer your question that you started with a statistically as I possibly can. But I love the way you free kind of put a 5% alpha on travel demand and say, run macro, and that's going to go forecast, Commercial Services. What I would tell you is for this year, that's going to hold. It might not next year.

路易，是的。因此，讓我盡可能從統計學的角度來回答您的問題。但我喜歡你免費將 5% 的 alpha 放在旅行需求上並說運行宏觀的方式，這將用於預測商業服務。我想告訴你們的是，今年這種情況將會持續下去。明年也許就不會了。

It might be bigger, it might be smaller. So I would say that's the state of affairs where it is today.

它可能更大，也可能更小。所以我想說這就是今天的狀況。

And let me equate that back to what we talked about two quarters ago and last quarter, right? We talked about growth in this business as a third, a third, a third. A third of that growth to get to high single digits, right? A third of that growth was GDP is travel growth. If we have 99% to 100% in the back half of the year, we did 99% in the second quarter, a little over 100% in the first quarter, you average that out, it looks a lot like 100%.

讓我將其與我們兩個季度前和上個季度討論的內容進行對比，對嗎？我們討論了該業務的成長，三分之一，三分之一。其中三分之一的成長將達到高個位數，對嗎？GDP 成長的三分之一是旅遊業成長。如果我們在下半年實現了 99% 到 100% 的銷售額，那麼我們在第二季度就實現了 99% 的銷售額，在第一季就實現了略高於 100% 的銷售額，平均下來，看起來很接近 100%。

So I don't have that 2.5% this year. right? So I see how you're getting there. I would say that in all of those secular tailwinds that we've talked about in the past, they are absolutely still occurring. Absolutely, the trend is unmistakable.

所以今年我沒有那 2.5%。對嗎？所以我明白你是怎麼做到的。我想說的是，我們過去談到的所有那些長期順風，它們絕對仍在發生。絕對的，這個趨勢是顯而易見的。

However, sometimes there's fits and starts. PAUSE -- right? Sometimes it grows a little faster, sometimes it grows a little slower. So that growth will be there, whether it will be a 5% alpha in 2028. I can't sit here and definitively tell you this.

然而，有時也會有斷斷續續的情況。暫停——對嗎？有時它長得快一點，有時它長得慢一點。因此，無論 2028 年的阿爾法值是否為 5%，成長都會存在。我無法坐在這裡明確地告訴你這一點。

David Koning, Baird.

大衛‧科寧，貝爾德。

Good job. And I guess, first of all, I wanted to just look at CapEx. It was like clockwork kind of $10 million to $15 million a quarter for many quarters kind of through really 2022 through 2024 mostly. And then by late 2024 and into this year, it's, I'd say, over doubled. And I know that's in preparation for demand but it's not like revenues doubled yet.

好工作。我想，首先，我只想看看資本支出。這就像鐘錶一樣，每個季度的金額都在 1000 萬美元到 1500 萬美元之間，持續了好幾個季度，基本上從 2022 年持續到 2024 年。然後到 2024 年底，到今年，我想這個數字將會增加一倍以上。我知道這是為了滿足需求而做的準備，但這並不代表收入已經翻倍了。

And just I'm wondering like what's the relationship there? Like if it's doubly shouldn't revenue be double? Or is it just a shorter-term kind of build and then 6 months from now, we'll see better growth? Like how should we think of that relationship?

我只是想知道這其中有什麼關係？例如，如果是雙倍的話，收入不應該也雙倍嗎？或者這只是一種短期建設，然後六個月後我們就會看到更好的成長？例如我們該如何看待這種關係？

So I get it. Dave, thanks for the question. So a couple of things, right? Is that CapEx tends to -- why the depreciable life of that CapEx is five to seven years, the useful life to that CapEx can be tenders. So I think just from linear mathematics, we're going to have -- always going to have a disconnect on that piece.

我明白了。戴夫，謝謝你的提問。那麼有幾件事，對吧？是 CapEx 傾向於－為什麼 CapEx 的折舊年限為五到七年，CapEx 的使用壽命可以招標。所以我認為，僅從線性數學的角度來看，我們將會——在這一點上總是存在脫節。

The second thing I would say is when -- you're right, right, that grew like $15 million to $18 million like clockwork, you nailed it. At time, the growth rate of the business was in the mid-single digits, especially outside of New York City, it might have been closer to low single digits.

我想說的第二件事是——你是對的，沒錯，它像鐘錶一樣準時地從 1500 萬美元增長到 1800 萬美元，你成功了。當時，業務成長率處於中等個位數，特別是在紐約市以外，可能更接近低個位數。

That today has grown at 12%, and that 12% is compounded on double-digit growth last year, right? So the vast majority -- so that's a buildup. Now let me go and kind of tear it down from the top down.

今天的成長率為 12%，而這 12% 是在去年兩位數的成長基礎上複合成長的，對嗎？所以絕大多數——這是一種累積。現在讓我從上往下把它拆開。

If you think about a roughly $100 million capital expenditure for the business, you take out the ERP, the platform consolidation, you're going to end up with -- we're going to spend somewhere between $60 million to $80 million.

如果您考慮大約 1 億美元的業務資本支出，那麼扣除 ERP 和平台整合，最終我們將花費 6,000 萬至 8,000 萬美元。

I know that's a big range. But the business is really moving quick right now, $60 million to $80 million worth of CapEx into the Government Solutions business, which is roughly 2.5x what it was in the past, and the business could be that size with this kind of growth five to seven years from today. That's how we look at it.

我知道這個範圍很大。但目前業務發展確實很快，政府解決方案業務的資本支出為 6,000 萬至 8,000 萬美元，大約是過去的 2.5 倍，如果再過五到七年，業務還能保持這樣的成長規模。我們就是這樣看待它的。

Yes. No, that makes sense. And certainly, leading to better -- to good growth, better growth, it's great. And then my follow-up, big kind of nerdy question. D&A has been running $28 million, $29 million a quarter the last couple of quarters.

是的。不，這很有道理。當然，這會帶來更好的成長——良好的成長，更好的成長，這很好。接下來是我的一個後續問題，也是一個非常棘手的問題。過去幾個季度，D&A 每季度的營運額分別為 2,800 萬美元、2,900 萬美元。

Full-year guidance, I think, is $110 million, that implies lower back half D&A unless I'm looking at something, Ron.

我認為全年指導價是 1.1 億美元，這意味著下半年 D&A 會更低，除非我正在考慮什麼，羅恩。

I don't think you're looking at something wrong. But you're starting to see that's not on the D side, on the A side, right? So what we're starting to see is -- look, this is something else we talked about earlier in the call, right, with the company -- hasn't done a deal in three-plus years.

我不認為你看到了什麼錯誤的東西。但你開始發現它不在 D 側，而在 A 側，對嗎？所以我們開始看到的是——看，這是我們在電話會議早些時候談到的另一件事，對吧，公司三年多來沒有達成一筆交易。

So some of the amortization from the deals that we did in the late teens and even into 2020, the customer list amortization non-cash expenses are starting to run off.

因此，我們在十幾歲後期甚至到 2020 年進行的交易中的一些攤銷，客戶名單攤提非現金費用開始減少。

And if you take a look at -- I know you do, if you look at our Q and our K, you could see the useful life of those are starting to get down to low single digits where a couple of years ago, they were five, six, seven years.

如果你看一下——我知道你會的，如果你看看我們的 Q 和 K，你會發現它們的使用壽命開始下降到個位數，而幾年前，它們是五年、六年、七年。

I'm showing no further questions at this time. This concludes the question-and-answer session.

我目前沒有其他問題。問答環節到此結束。

Thank you for your participation in today's conference.

感謝大家參加今天的會議。

This does conclude the program. You may now disconnect.

該計劃確實就此結束。您現在可以斷開連線。