Vestis Corp (VSTS) 2025 Q2 法說會逐字稿

(Operator Instructions)

（操作員指示）

Welcome to the Vestis Corporation fiscal second-quarter 2025 earnings conference call. (Operator Instructions)

歡迎參加 Vestis Corporation 2025 財年第二季財報電話會議。（操作員指示）

I would now like to turn the call over to Michael Aurelio, Vice President of Investor Relations.

現在我想將電話轉給投資人關係副總裁 Michael Aurelio。

Thank you, operator, and thank you all for joining us. With me are Philip Homan, Interim Executive Chairman, President and Chief Executive Officer; and Kelly Janzen, Executive Vice President and Chief Financial Officer, and they will discuss our fiscal 2025 second-quarter results. After commentary, we will open the call to questions from the analysts.

謝謝接線生，也謝謝大家加入我們。與我一起出席的還有臨時執行主席、總裁兼執行長 Philip Homan 和執行副總裁兼財務長 Kelly Janzen，他們將討論我們 2025 財年第二季的業績。評論結束後，我們將開始回答分析師的問題。

The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor from civil litigation for forward-looking statements. This conference call contains forward-looking statements that reflect the company's current views as to future events and financial performance. These forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those we may discuss. I refer you to the discussion on these points contained in our most recent filings with the Securities and Exchange Commission. I will now turn the call over to Philip.

1995 年《私人證券訴訟改革法案》為前瞻性聲明提供了避免民事訴訟的安全港。本次電話會議包含前瞻性陳述，反映了公司對未來事件和財務表現的當前看法。這些前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們討論的結果有重大差異。我請您參閱我們最近向美國證券交易委員會提交的文件中關於這些問題的討論。現在我將電話轉給菲利普。

Thank you, Michael. Good morning, everyone, and thank you for joining us. Before we get into the quarter, I want to highlight the news we announced after market closed yesterday. Jim Barber, former Chief Operating Officer of UPS, will be stepping into the role of President and Chief Executive Officer, effective June 2, 2025. At that time, I will return to my role as Chairman of the Board. Jim is a proven leader with a track record of driving profitable growth, and I look forward to working closely with him to ensure a seamless transition. With that, let me turn to our results.

謝謝你，麥可。大家早安，感謝大家的收看。在進入本季度之前，我想強調一下我們昨天收盤後宣布的消息。UPS 前營運長 Jim Barber 將於 2025 年 6 月 2 日起擔任總裁兼執行長一職。屆時，我將重返董事會主席一職。吉姆是一位久經考驗的領導者，有著推動獲利成長的良好記錄，我期待與他密切合作，確保順利過渡。接下來，讓我來談談我們的成果。

I will begin my remarks with an overview of the second quarter performance, specifically, what changed between Q1 and Q2 and why we did not deliver the revenue growth that we expected this quarter. I'll then discuss actions that we have been taking to improve our performance as well as the positive results we are seeing from those actions. At the end, I will turn it over to Kelly to review our financials in more detail before we take questions.

我首先將概述第二季的業績，具體來說，第一季和第二季之間發生了什麼變化，以及為什麼我們本季沒有實現預期的營收成長。然後，我將討論我們為提高績效所採取的行動以及從這些行動中看到的積極成果。最後，在我們回答問題之前，我會將問題交給凱利來更詳細地審查我們的財務狀況。

Second quarter revenue was $665 million which declined approximately $18 million from Q1 or 2.7%, a significant difference from the growth we implied in our guidance. Excluding a $150 million one-time bad debt adjustment that Kelly will discuss, adjusted EBITDA with $63 million or 9.4% of revenue, a250 basis point reduction compared to Q1. This decrease in margin from our lower revenue demonstrates the operating leverage inherent in our relatively fixed cost structure, which in times of revenue growth, is beneficial.

第二季營收為 6.65 億美元，較第一季下降約 1,800 萬美元，降幅為 2.7%，與我們預期的成長有顯著差異。不包括凱利將要討論的 1.5 億美元一次性壞帳調整，調整後的 EBITDA 為 6,300 萬美元，佔收入的 9.4%，與第一季度相比減少了 250 個基點。由於收入較低而導致的利潤率下降表明，我們的相對固定的成本結構中存在固有的經營槓桿，這在收入成長時是有益的。

During the quarter, $7 million of decline was related to direct sales and $11 million of the decline was from our rental business, which we had expected to grow given the previous trends. While this was partially driven by lost business and excess of new business, the main reason for the decrease was lower ads over stops, which is how we describe volume changes with our existing customers.

本季度，700 萬美元的下降與直接銷售有關，1,100 萬美元的下降來自我們的租賃業務，根據先前的趨勢，我們預計租賃業務將會成長。雖然這部分是由於業務損失和新業務過剩造成的，但下降的主要原因是網站廣告減少，這是我們對現有客戶數量變化的描述。

In January, we saw a significant decline in volume as some customers seasonally adjusted their demand for our products, specifically workplace supplies. For example, many of our hospitality customers have lowered demand in the weeks following the holiday season. Additionally, within our rental business, we periodically bill customers for inventory that they have either lost or ruined, which we call LNRs. This revenue can fluctuate from quarter to quarter, and during quarter two, we had approximately $4 million less LNR compared to Q1. And while these are not the results we expected to deliver, I want to convey a few things.

一月份，我們的銷售量大幅下降，因為一些客戶根據季節性調整了對我們產品（特別是辦公用品）的需求。例如，我們的許多飯店客戶在假期後的幾週內降低了需求。此外，在我們的租賃業務中，我們會定期向客戶收取遺失或損壞的庫存費用，我們稱之為 LNR。該收入每季都會有所波動，第二季的 LNR 與第一季相比減少了約 400 萬美元。雖然這些不是我們期望的結果，但我還是想傳達一些事情。

First, over the course of the second quarter, we have recovered the majority of the January decline in rental revenue. Second, we have taken meaningful actions to further improve revenue, including focusing on decreasing the number of credits being issued to our customers. We have done this by improving specific customer service issues such as product shortages and cleaning quality, and have seen a positive impact from these actions on our revenue run rate in a relatively short time frame. Together these improvements supported our April average weekly revenue returning back to December levels. And finally, we continue to take steps to improve our forecasting capability.

首先，在第二季度，我們已經恢復了 1 月份租金收入的大部分跌幅。其次，我們採取了有意義的行動來進一步提高收入，包括著力減少發放給客戶的信用額度。我們透過改善特定的客戶服務問題（例如產品短缺和清潔品質）來實現了這一目標，並在相對較短的時間內看到了這些措施對我們的收入運作率的正面影響。這些改進共同支持了我們四月份的平均每週收入回到了十二月份的水平。最後，我們將繼續採取措施提高我們的預測能力。

Let me be clear, we are disappointed with our second quarter performance. It does not represent our long term potential in the attractive uniform and workplace supplies market. We can and we will do better through serving our customers, executing our strategic priorities, and delivering for our shareholders. That said, I would like to highlight several positive trends.

讓我明確一點，我們對第二季的表現感到失望。它並不代表我們在有吸引力的製服和工作場所用品市場的長期潛力。我們能夠並且將會透過服務客戶、執行策略重點和為股東創造價值而做得更好。話雖如此，我想強調幾個正面的趨勢。

Last quarter, we said we expected new business to exceed our lost business by the end of Q2. While the impact of lost business was still higher than new business in Q2, the gap narrowed in the quarter as the impact of lost business declined by approximately 10%. New business contributed 2.4% of revenue growth, or approximately 1,000 basis points on an annualized basis due to strong performance in both frontline sales and national accounts.

上個季度，我們表示預計到第二季末新業務將超過損失的業務。儘管第二季業務損失的影響仍然高於新業務，但本季差距有所縮小，因為業務損失的影響下降了約 10%。由於一線銷售和全國帳戶的強勁表現，新業務貢獻了 2.4% 的收入成長，按年率計算約為 1,000 個基點。

Our frontline sales team is now fully staffed and average productivity per sales representative increased by approximately 10% over the course of the second quarter. Collectively, our field sales and national account teams installed 35% more reoccurring revenue year over year and 10% more than in the first quarter. While we still have more work to do, we have demonstrated that we can win and are winning with new customers.

我們的第一線銷售團隊現已人員齊備，第二季每位銷售代表的平均生產力提高了約 10%。整體而言，我們的現場銷售和全國客戶團隊的經常性收入年增 35%，比第一季成長 10%。雖然我們還有很多工作要做，但我們已經證明我們能夠贏得新客戶，並且正在贏得他們的青睞。

In addition to new growth and customer retention, my focus has been improving customer service and operational effectiveness. I've been meeting with our teams and visiting our facilities to determine where we need to take immediate action in these areas, and I want to thank our teammates across the market centers for their support.

除了新成長和客戶保留之外，我的重點是提高客戶服務和營運效率。我一直在與我們的團隊開會並參觀我們的設施，以確定我們需要在這些領域立即採取行動的地方，我要感謝各個市場中心的隊友的支持。

We are moving with a sense of urgency to drive a customer centric mindset across all levels of the organization. I am particularly focused on positioning our route sales representatives for success. These teammates play a critical role as the face of investors to our customers. This includes enabling field service teams to deliver best-in-class services from the start with enhanced ability to solve customer issues in real time. It also means ensuring our teams can support our customers' needs by delivering high quality products on time and in full. And the accumulation of all these efforts will provide the foundation for a return to growth and long-term value creation.

我們正帶著迫切感在組織的各個層面推動以客戶為中心的思維模式。我特別注重為我們的路線銷售代表定位，以取得成功。這些隊友作為投資者面向客戶的代表發揮著至關重要的作用。這包括使現場服務團隊從一開始就提供一流的服務，並增強即時解決客戶問題的能力。這也意味著確保我們的團隊能夠按時、完整地交付高品質的產品來滿足客戶的需求。而所有這些努力的積累，將為恢復成長和長期價值創造奠定基礎。

Before Kelly covers our financial results in more detail, I want to acknowledge her partnership and precision since joining Vestis in mid-February. As she will discuss, although we are updating our guidance to better reflect our recent performance, I am encouraged that we have now delivered sequential monthly revenue growth in each month since January, including April. I am also pleased that we successfully executed an amendment to our credited agreement that gives us additional flexibility to the end of fiscal 2026. We want to thank our lenders for their partnership and support of Vestis. We remain focused on delevering and disciplined capital allocation.

在凱莉 (Kelly) 更詳細地介紹我們的財務業績之前，我想先對她自二月中旬加入 Vestis 以來的合作精神和嚴謹性表示感謝。正如她將要討論的那樣，儘管我們正在更新我們的指導方針，以更好地反映我們最近的業績，但令我感到鼓舞的是，自 1 月以來，包括 4 月在內，我們每個月的收入都實現了連續增長。我也很高興我們成功地執行了信貸協議的修訂，這為我們在 2026 財年末提供了更多的靈活性。我們要感謝我們的貸款方對 Vestis 的合作和支持。我們仍然專注於去槓桿和嚴格的資本配置。

Let me conclude by saying that while we had a challenging second quarter, we're encouraged by recent trends are taking actions to improve our performance. We are entering Q3 in a strong position, and I believe we will grow revenue and expand our margins as we move forward. Now, we'll turn it over to Kelly.

最後，我想說，雖然第二季我們面臨挑戰，但最近的趨勢令我們感到鼓舞，我們正在採取行動來改善我們的業績。我們正以強勁的勢頭進入第三季度，我相信隨著我們的發展，我們的收入將會增加，利潤率也會增加。現在，我們將把話題交給凱利。

Thank you, Philip, and good morning, everyone. I will first go over the second quarter financial results and at the end give an update on guidance.

謝謝你，菲利普，大家早安。我將先介紹第二季的財務業績，最後提供最新的指導。

Revenue during the quarter was $665 million, down 5.7% year over year and down 2.7% when compared to the first quarter of 2025. The $18 million sequential decline in revenue was due to an $11 million decrease in rental revenue and a $7 million decrease in direct sales. Within rental revenue, growth from new business contributed $17 million or 2.4% of revenue during the quarter.

本季營收為 6.65 億美元，年減 5.7%，與 2025 年第一季相比下降 2.7%。收入連續下降 1800 萬美元是由於租賃收入減少 1100 萬美元和直接銷售額減少 700 萬美元。在租賃收入中，新業務的成長為本季貢獻了 1,700 萬美元，佔營收的 2.4%。

As Philip mentioned, we continue to see solid momentum in both our field and national account sales organizations which collectively installed 35% more recurring revenue year over year and 10% more than in the first quarter. These new customer installations were skewed for the second half of Q2, providing a tailwind going into Q3 as we realized their benefit for a full quarter of revenue.

正如菲利普所提到的，我們繼續看到我們的現場和國家帳戶銷售組織保持強勁的發展勢頭，其整體經常性收入同比增長 35%，比第一季增長 10%。這些新客戶的安裝在第二季下半年出現偏差，為我們進入第三季提供了順風，因為我們意識到它們對整個季度的收入有利。

The revenue impact in the second quarter from lost business was approximately $20 million which is an improvement of roughly 10% when compared to the lost business impact in the first quarter. On a rolling 12-month basis, our customer retention was 92.4% at the end of Q2, which is relatively consistent with the annual rates we have seen in previous years. We remain highly focused on both generating new business and effectively managing our lost business.

第二季業務損失對營收的影響約為 2,000 萬美元，與第一季的業務損失影響相比，改善了約 10%。以連續 12 個月計算，我們第二季末的客戶保留率為 92.4%，與前幾年的年保留率基本一致。我們仍然高度重視開拓新業務並有效管理失去的業務。

Revenue from existing customers declined approximately $8 million in the second quarter compared to Q1 which includes the $4 million in LNR revenue that Philip discussed. We continue to realize price increases with our existing customers. And while new pricing has been partially offset by price adjustments elsewhere, our overall net pricing was positive by $3.5 million as compared to the first quarter.

與第一季相比，第二季來自現有客戶的收入下降了約 800 萬美元，其中包括 Philip 討論的 400 萬美元的 LNR 收入。我們持續向現有客戶提高價格。儘管新定價已被其他方面的價格調整部分抵消，但與第一季相比，我們的整體淨定價仍上漲了 350 萬美元。

Net volume from existing customers, which we call ads over stops, declined $6.5 million in Q2 relative to the first quarter. We saw a significant decline in volume as some customers seasonally adjust the demand for our products, specifically workplace supplies. Additionally, our revenue was negatively impacted by volume-related credits issued to customers to address service concerns. Over the course of the last two months, we have further increased our efforts to mitigate these issues, and as a result, have seen a significant reduction in weekly customer credits.

來自現有客戶的淨交易量（我們稱之為廣告停止）與第一季相比在第二季下降了 650 萬美元。由於部分客戶會根據季節調整我們產品（特別是辦公用品）的需求，我們的銷售量大幅下降。此外，為解決服務問題而向客戶發放的與數量相關的信用額度也對我們的收入產生了負面影響。在過去兩個月中，我們進一步加強了力度來緩解這些問題，結果，每週的客戶信用額度大幅減少。

In our direct sales business, the $7 million or almost 18% sequential decline in revenue, primarily reflects typical seasonality, as our fiscal first quarter is historically our strongest quarter for direct sales. Over the last couple of years, our direct sales revenue also declined by a similar percentage between the first and second quarters. On a year-over-year basis, the decline in direct sales was primarily due to the non-regrettable loss of a large national account customer that we exited in the middle of fiscal 2024. As a reminder, this customer represented approximately $26 million in annual revenue, which has been fully out of our revenue run rate since the fourth quarter of last year.

在我們的直銷業務中，收入下降了 700 萬美元，即環比下降了近 18%，這主要反映了典型的季節性，因為從歷史上看，我們的第一財季是我們直銷業務表現最強勁的季度。過去幾年，我們的直銷收入在第一季和第二季之間也下降了類似的百分比。與去年同期相比，直銷額的下降主要是因為我們在 2024 財年中期失去了一個大型全國客戶，這令人遺憾。提醒一下，這位客戶的年收入約為 2,600 萬美元，自去年第四季以來，這已經完全超出了我們的收入運行率。

Cost of services in the quarter was $490 million and gross margin was 26.3%, down approximately 130 basis points when compared to the first quarter of this year. On a sequential basis, cost of services declined by $5 million due primarily to lower net volume. It's important to note that currently, our cost of services is relatively fixed, which results in gross margin compression when our revenue declines. We are highly focused on controlling our operating costs and evaluating opportunities to drive further reductions and improve profitability.

本季服務成本為 4.9 億美元，毛利率為 26.3%，與今年第一季相比下降約 130 個基點。與上一季相比，服務成本下降了 500 萬美元，主要原因是淨銷售量下降。值得注意的是，目前我們的服務成本相對固定，這導致當我們的收入下降時毛利率就會受到壓縮。我們高度重視控制營運成本並評估進一步降低成本和提高獲利能力的機會。

For the second quarter, SG&A was $148 million an increase of approximately $27 million when compared to Q1. This includes The $15 million one-time bad debt expense adjustment as well as $10 million related to recent executive transition. Adjusting for these items, SG&A increased $2 million sequentially, primarily driven by higher selling expense as we continue to successfully ramp our frontline sales team.

第二季度，銷售、一般及行政費用為 1.48 億美元，與第一季相比增加約 2,700 萬美元。其中包括 1500 萬美元的一次性壞帳費用調整以及與最近高階主管過渡相關的 1000 萬美元。調整這些項目後，銷售、一般及行政費用較上月增加了 200 萬美元，這主要是由於我們繼續成功擴大第一線銷售團隊，銷售費用增加。

Net loss for the quarter was $28 million and diluted loss per share was $0.21. On an adjusted basis, net loss was $6 million and diluted loss per share was $0.05. The second quarter tax rate was 18.6%, and we recorded a tax benefit of $6 million during the period. Second quarter reported adjusted EBITDA was $48 million and excluding the $15 million one-time bad debt adjustment was $63 million representing a margin of 9.4%. This compares to 11.9% in the first quarter of 2025 and 12.4% in Q2 of 2024. Now, moving on to cash flow and working capital.

本季淨虧損為2,800萬美元，每股攤薄虧損0.21美元。調整後，淨虧損為600萬美元，每股攤薄虧損0.05美元。第二季稅率為18.6%，本季我們錄得600萬美元的稅收優惠。第二季報告的調整後 EBITDA 為 4,800 萬美元，不包括 1,500 萬美元的一次性壞帳調整，為 6,300 萬美元，利潤率為 9.4%。相比之下，2025 年第一季為 11.9%，2024 年第二季為 12.4%。現在，我們來討論現金流和營運資金。

During the quarter, we generated $7 million of operating cash flow. However, free cash flow was $7 million negative, reflecting lower profit and higher working capital. The increase in working capital was primarily due to $30 million of investment and inventory to support new customer installations as well as improve our ability to serve existing customers more effectively. This investment included $6 million of purchases we bought in anticipation of tariffs. Given current inventory levels, we do not anticipate the need to continue making significant investments over the remainder of the fiscal year. During the quarter, we spent approximately $14 million in capital expenditures, and for the year, we expect total capital investment to be around $60 million the majority of which is related to market center facility improvements.

本季度，我們產生了 700 萬美元的營運現金流。然而，自由現金流為負 700 萬美元，反映出利潤下降和營運資本增加。營運資本的增加主要歸因於 3000 萬美元的投資和庫存，用於支援新客戶的安裝以及提高我們更有效地服務現有客戶的能力。這項投資包括我們為應對關稅而購買的價值 600 萬美元的商品。鑑於目前的庫存水平，我們預計在本財政年度剩餘時間內不需要繼續進行大量投資。在本季度，我們花費了大約 1400 萬美元的資本支出，而全年我們預計總資本投資約為 6000 萬美元，其中大部分與市場中心設施改進有關。

Looking at our balance sheet, at the end of the second quarter, total debt was $1.31 billion and our principal bank debt outstanding was $1.17 billion which is a reduction of $327 million since the end of fiscal 2023. Our liquidity position is strong, with no debt maturities until 2027 and $293 million of available liquidity, including $264 million of undrawn revolver capacity and $29 million of cash on hand.

查看我們的資產負債表，截至第二季末，總債務為 13.1 億美元，未償還本金銀行債務為 11.7 億美元，自 2023 財年末以來減少了 3.27 億美元。我們的流動性狀況良好，2027 年之前沒有債務到期，擁有 2.93 億美元的可用流動性，其中包括 2.64 億美元的未提取循環信貸額度和 2,900 萬美元的現金。

We are pleased to have executed an amendment to our credit agreement this quarter, and I want to thank our lenders for their support of Vestis. The primary change to the agreement was to effectively increase the net leverage covenant ratio for each of the next six quarters through the end of fiscal 2026. This includes extending the current 5.25 times covenant ratio by another year after which the covenant ratio steps down to 5 times in Q3 2026, 4.75 times in Q4 2026, and 4.5 times in Q1 2027 and beyond.

我們很高興本季對我們的信貸協議進行了修訂，我要感謝我們的貸方對 Vestis 的支持。該協議的主要變化是有效提高截至 2026 財年末未來六個季度的每個季度的淨槓桿契約率。其中包括將目前的 5.25 倍契約比率再延長一年，之後契約比率在 2026 年第三季降至 5 倍，2026 年第四季降至 4.75 倍，2027 年第一季及以後降至 4.5 倍。

I would also like to note that the amendment includes an allowance to exclude the one-time $15 million bad debt expense adjustment from our Q2 covenant adjusted EBITDA and that the company's Q2 adjusted EBITDA is $63 million for the purpose of determining the net leverage covenant ratio of 4.2 times for the second quarter. As part of the amendment, we have agreed to restrict all dividends and share repurchases through the end of Q1 2027.

我還想指出的是，該修正案包括一項津貼，即從我們的第二季度契約調整後的 EBITDA 中排除一次性 1500 萬美元的壞帳費用調整，並且該公司第二季度的調整後 EBITDA 為 6300 萬美元，目的是確定第二季度的淨槓桿契約率為 4.2 倍。作為修訂的一部分，我們同意在 2027 年第一季末之前限制所有股息和股票回購。

We have the flexibility to reinstate the dividend or repurchase shares earlier if we delever below 4.5 times for two consecutive quarters prior to 2027. Due to timing, we already paid the Q2 and Q3 dividends during our second quarter, so there will be no additional dividend payments going forward. Our guiding principles for capital allocation are to maintain a strong balance sheet and allocate capital to high return opportunities with a focus on delevering. The amendment to our credit agreement provides additional financial flexibility and balance sheet support as we continue to focus on these goals, including the elimination of the dividend, which allows us to direct an even greater percentage of available cash generation towards reducing net debt. Now, turning to guidance.

如果我們在 2027 年之前連續兩季將槓桿率降至 4.5 倍以下，我們可以靈活地恢復股利或提前回購股票。由於時間原因，我們已經在第二季支付了第二季和第三季的股息，因此未來將不會再支付股息。我們的資本配置指導原則是保持強勁的資產負債表，並將資本配置給高回報機會，重點是去槓桿。我們信貸協議的修訂提供了額外的財務靈活性和資產負債表支持，因為我們將繼續關注這些目標，包括取消股息，這使我們能夠將更大比例的可用現金用於減少淨債務。現在，轉向指導。

Given the recent events as well as the increasingly uncertain macro environment, we are shifting to quarterly guidance rather than providing a full year outlook. Our recent weekly revenue trends suggests that our third quarter revenue will be in the range of $674 million to $682 million and we expect adjusted EBITDA to be at least $63 million, indicating sequential improvement as we continue to invest in the resources we need to drive sustainable and profitable growth. We will continue to focus on improving free cash flow conversion over the long term, but we will no longer be providing guidance for free cash flow.

鑑於最近發生的事件以及日益不確定的宏觀環境，我們將轉向提供季度指導，而不是提供全年展望。我們最近每週的營收趨勢表明，我們的第三季營收將在 6.74 億美元至 6.82 億美元之間，我們預計調整後的 EBITDA 將至少為 6,300 萬美元，這表明隨著我們繼續投資於推動永續獲利成長所需的資源，我們的營收將實現連續改善。我們將繼續致力於長期改善自由現金流轉換，但我們將不再提供自由現金流指導。

We are disappointed with our first half results. However, we are moving forward with intentional steps to strengthen operations and enhance our profitability in the second half of this year and beyond. I want to emphasize that we are encouraged by recent trends.

我們對上半年的業績感到失望。然而，我們正在採取有意識的措施來加強營運並提高今年下半年及以後的獲利能力。我想強調的是，最近的趨勢令我們感到鼓舞。

Our average weekly revenue has improved for three consecutive months, and our current run rate is 3.4% higher than it was in January. We are winning more business and improving our customer service, which is resulting in less revenue being returned to our customers. Overall, we are entering Q3 in a stronger position than we were in heading into Q2. Finally, we continue to have a healthy balance sheet with the credit amendment providing additional financial flexibility through the end of next year. Philip and I would like to thank you for your time this morning. And with that, I will turn the call back to the operator for your questions.

我們的平均每週收入已連續三個月提高，目前的運作率比一月高出 3.4%。我們贏得了更多的業務並改善了我們的客戶服務，但這導致我們返還給客戶的收入減少。整體而言，我們進入第三季時的地位比進入第二季時更強。最後，我們的資產負債表繼續保持健康，信貸修正案將在明年年底前提供額外的財務彈性。菲利普和我感謝您今天上午抽出時間。說完這些，我會將電話轉回給接線生，以便回答您的問題。

(Operator Instructions)

（操作員指示）

Andy Wittmann, Baird.

安迪‧維特曼，貝爾德。

I guess, I want to start with trying to understand your confidence level that that this earnings level that you've got to here for your fiscal third quarter is the right level and the confidence that you have that this is in fact kind of marking the bottom, I guess. You mentioned that it's a little bit higher than the second quarter that you just reported. You talked about the weekly revenue, but the organic revenue growth did decelerate quarter over quarter.

我想，首先我想了解一下您的信心水平，即您對第三財季的盈利水平是否正確，以及您是否有信心這實際上標誌著底部。您提到它比您剛剛報告的第二季度略高一些。您談到了每週的收入，但有機收入成長確實逐季度放緩。

You talked about elevated credits during the quarter. You said that maybe it's getting a little better now, but sounds like there's still kind of a service issue at its core, and these are -- these have been issues for for some time, and they don't usually change in one quarter. So Philip, I just thought maybe you could just comment on on your confidence around this being the bottom and fundamentally the service at the at the root of all of this.

您談到了本季信貸增加的情況。您說現在情況可能有所好轉，但聽起來其核心仍然存在某種服務問題，這些問題已經存在一段時間了，而且通常不會在一個季度內發生變化。所以菲利普，我只是想，也許你可以評論一下你對這一切的底線和根本服務的信心。

Yeah, Andy, thanks for your question. Yeah, we do have confidence. I do have confidence in our guidance for next quarter, but obviously, we're looking at it to make sure that the trends that we see are sustainable going forward. And we -- with our new CEO coming in, it's a matter of saying that I, the trends that we're seeing support this guidance through next quarter and then we'll go from there, but -- so yeah, I feel confident in the guidance.

是的，安迪，謝謝你的提問。是的，我們確實有信心。我確實對我們下個季度的指導有信心，但顯然，我們正在關注它以確保我們所看到的趨勢在未來是可持續的。隨著我們新任執行長的上任，我可以說，我們看到的趨勢將支持這一指導直至下個季度，然後我們將從那裡開始，但是——是的，我對這一指導充滿信心。

And if I can add in there, and the another reason why we would feel confident around it is because if you normalize the $4 million dollar LNR impact this year, our rental business declined last year as well from our -- declined this year $7 million from Q1 to Q2, and we saw a very similar impact last year. So we believe a lot of the decline was related to seasonal decreases that our existing customers that related to our existing customer volume. Many of our customers decrease their volume for certain products depending on their needs during the holiday period. And then we saw that increase come back during the quarter, and as I mentioned, month over month we saw revenue increasing. And not only did we see it through March, but we've actually seen that increase through April, which in fact was different last year where we start to tail off a bit. So we actually believe the trends are very positive and we're, as Philip mentioned, we're going to wait and see, but I do feel confident in the way things are going at this moment.

而且我可以補充一點，我們對此充滿信心的另一個原因是，如果將今年 400 萬美元的 LNR 影響正常化，那麼我們的租賃業務去年也出現了下滑——今年從第一季度到第二季度下降了 700 萬美元，我們看到了去年非常相似的影響。因此，我們認為，很大一部分下降與現有客戶的季節性下降有關，這與我們現有客戶的數量有關。我們的許多客戶會根據假期期間的需求減少某些產品的購買量。然後，我們看到該季度出現了成長，正如我所提到的，我們看到收入逐月增加。我們不僅在三月看到了這一趨勢，而且實際上在四月也看到了這一趨勢的增長，這與去年有所不同，去年的趨勢開始有所下降。因此，我們確實相信趨勢非常積極，正如菲利普所提到的，我們將拭目以待，但我確實對目前事態的發展充滿信心。

And Andy, I would also say that we have a much better handle on our numbers from a financial standpoint as we look at different aspects of that over stuff that we feel really good about having a much better understanding of the numbers and what we need to do to improve.

安迪，我想說，從財務角度來看，我們對數字有了更好的把握，因為我們從不同角度看待問題，我們對數字有了更好的理解，也知道我們需要做些什麼來改進，這讓我們感到非常高興。

Got it. Okay, I had kind of two other questions that I wanted to get in front of you as well. And in your prepared remarks, Philip, but we heard a lot about the quarter, you talked about being fully staffed on sales, but given where the new revenue might be residing here, I was wondering if there's any other actions that you can take on the cost structure? I know there have been many significant actions already taken over the past couple of years, and so, I don't know if there's more that can be done, but I didn't hear you to refer to any. Or if that's not part of the strategy, that's fine, but I was just hoping that you would address that.

知道了。好的，我還有兩個問題想向您請教。菲利普，在您準備好的發言中，我們聽到了很多關於本季度的消息，您談到了銷售人員的配備，但考慮到新的收入可能來自哪裡，我想知道您是否可以對成本結構採取其他行動？我知道過去幾年已經採取了許多重大行動，所以，我不知道是否還可以做更多，但我沒有聽到您提到任何內容。或者如果這不是策略的一部分，那也沒關係，但我只是希望你能解決這個問題。

And then my follow up after that was probably more for Kelly and heard the comments that you weren't going to be commenting on free cash flow guidance. Obviously, in the past you said think about it as 50% of EBITDA, but if you're not willing to comment on that, I was hoping maybe you could just talk about some of the quotes and the takes that we should all be thinking about as it relates to your free cash flow, given this new kind of earnings level that seems to be emerging here. So those two questions then I'm done. Thank you.

然後我之後的後續可能更多是針對凱利的，我聽到了你不會對自由現金流指導發表評論的評論。顯然，過去您說過將其視為 EBITDA 的 50%，但如果您不願意對此發表評論，我希望您能談談一些報價和看法，鑑於這種似乎正在出現的新型盈利水平，我們都應該考慮這些報價和看法與您的自由現金流有關。那這兩個問題我就回答完了。謝謝。

Okay, I'm going to start with Kelly answering the second question, and then I'll come back and answer the first question that you asked.

好的，我先讓凱利回答第二個問題，然後再回頭回答你提出的第一個問題。

Yeah, sure. And Andy, like we said, we're not guiding cash flow for the year. However, if you look at the Q2 results, we did make an investment in $30 million of inventory over the quarter, which we had said for the rest of the year we would not be really needing to increase. And when you normalize for this effect, you can think about free cash flow on an annualized basis. We're currently in the range of about $80 million when you also layer in some of the seasonal dynamics we see in the first quarter. So that's kind of a better view of how to think about cash.

是的，當然。安迪，就像我們說的，我們不會指導今年的現金流。然而，如果你看一下第二季度的業績，就會發現我們在本季度確實投資了 3000 萬美元的庫存，而我們曾說過，在今年剩餘時間內我們實際上不需要增加這筆投資。當你將此影響標準化時，你可以考慮按年計算的自由現金流。如果將第一季看到的一些季節性動態考慮進去，我們目前的利潤範圍約為 8000 萬美元。這是對如何看待現金的更好看法。

And the first part of your question, Andy, we are continuing with our efforts around plant consolidations and better utilizing of our assets and facilities and being more efficient, so we continue that work. At the same time, we did a lot of work-- a lot of work was done, I should say, in the past year on cost reduction. And I'm at the point now, Andy, and I believe we're at the point where we need to settle down and really look at making absolutely sure that we are investing where we need to help retain customers and provide better service. So it's a fine balance there, but we need to make absolutely sure that we're able to service our customers in a very robust, solid, customer centric kind of a focus.

安迪，你問題的第一部分，我們正在繼續努力進行工廠合併，更好地利用我們的資產和設施，提高效率，所以我們會繼續這項工作。同時，我們在過去的一年裡為降低成本做了很多工作——應該說，我們做了很多工作。安迪，我現在就處於這個階段，我相信我們正處於需要安定下來並真正考慮確保我們在需要的地方進行投資，以幫助留住客戶並提供更好的服務。因此，這需要一種微妙的平衡，但我們需要絕對確保我們能夠以非常強大、穩固、以客戶為中心的方式為客戶提供服務。

Shlomo Rosenbaum, Stifel.

施蒂費爾的什洛莫·羅森鮑姆。

So I'm just -- the issues that seem to be going on, at least in the service issues seem to have been going on for a while, and the company seem to have been working on it in order to address it. And I'm just -- justwant to get your view as to what really has to be done here to fix some of those things. And then, we're not seeing volume issues from Cintas, they basically said that things were pretty steady, and I'm trying to figure out why there would be more of a concern amongst your client base than what we're seeing from Cintas. And after that, I'll ask one follow up.

所以我只是——似乎正在發生的問題，至少在服務問題上似乎已經持續了一段時間，而且公司似乎一直在努力解決它。我只是——只是想聽聽你的看法，看看到底需要做些什麼來解決這些問題。然後，我們沒有看到辛塔斯 (Cintas) 的銷售問題，他們基本上說情況相當穩定，我試圖弄清楚為什麼你們的客戶群會比我們看到的辛塔斯 (Cintas) 的銷量問題更加擔憂。此後，我會問一個後續問題。

Yeah, the -- in the service area, we are now and what we've done over the last few weeks, we are better organized and providing the right resources to implement both the improvements that need to be made in the plant and the improvements that we need to make in service. Make sure that we have some resources that are focused on that, helping to implement and execute those improvements in the locations, and so, that's the part of why I see it improving. Also, we've been talking a lot about culture and being focused on the customer and being customer centric, and making absolutely sure that we're doing that.

是的，在服務領域，我們現在以及過去幾週所做的工作，使我們的組織更加完善，並提供了正確的資源來實施工廠所需進行的改進以及服務所需進行的改進。確保我們有一些專注於此的資源，幫助在各個地點實施和執行這些改進，這就是我看到它改進的部分原因。此外，我們一直在談論文化、關注客戶、以客戶為中心，並確保我們正在做到這一點。

The other part of it is what I often say, and I think I said it in my remarks, is that we need to be always working towards positioning our RSRs for success because they are, of course, the face of the company and they have the relationships with the customer, and we need to make absolutely sure that they have the products with complete loads that they need to fully service the customer. And we're doing training in that area and really focus on how we can best make our RSR successful and so that gives me more confidence. And I understand your point around we've been working on these things, I would say we now have a renewed focus or making absolutely sure that that we're getting these things implemented.

另一部分是我經常說的，我想我在我的演講中也說過，我們需要始終努力讓我們的 RSR 獲得成功，因為它們當然是公司的門面，它們與客戶有關係，我們需要絕對確保它們擁有為客戶提供全面服務所需的完整產品。我們正在該領域進行培訓，真正專注於如何最好地使我們的 RSR 取得成功，這給了我更多的信心。我理解你所說的我們一直在努力實現這些目標，我想說我們現在有了新的重點，或者說我們絕對確保實現這些目標。

And as -- and related to the volume question, I think it probably has to do with different mix of products, certainly, they have a number of products we don't carry. And then within the rental space where we are similar, I think we might have a little heavier mix towards some of the linen areas and some of the with food and beverage and hospitality businesses. So with that, that's where we actually saw the decline coming out of December and actually the return as well coming back into March is really in that space with those types of customers as they were able to kind of make decisions up or down in those product areas. So I think that could be a contribution. I can only speak to what we have seen, and that's really where we see the impact this quarter.

至於數量問題，我認為這可能與不同的產品組合有關，當然，他們有很多我們沒有的產品。然後，在我們類似的租賃領域，我認為我們可能會在一些亞麻製品領域以及一些食品和飲料和酒店業務方面有更大的混合。因此，我們實際上看到了 12 月的下降，而實際上 3 月的回升確實處於這個階段，因為這些類型的客戶能夠在這些產品領域做出上漲或下跌的決定。所以我認為這可能是一種貢獻。我只能談論我們所看到的，這就是我們在本季真正看到的影響。

And as you noticed, we have started to talk about credits, the amount of credit that we issued. And the real opportunity there is to fix the performance issues that cause credits to happen and that's what we're focused.

正如您所注意到的，我們已經開始談論信貸以及我們所發放的信貸額度。真正的機會是解決導致信用額度不足的績效問題，這也是我們關注的重點。

And then just given the service issues and the need for more volume, you're bringing in someone new who's got experience, who's got to come in with the ability to make the changes that he wants to make. Would you envision that realistically, he's going to want to invest a lot more money to turn this company around. And so, what we should be seeing is an investment period in order for the company to get to that service level, get to that sales level, get to the operational efficiency level that you need.

然後，考慮到服務問題和對更多數量的需要，你需要引進一個有經驗的新人，他必須有能力做出他想要做的改變。您是否可以想像，他實際上會願意投入更多資金來扭轉這家公司的局面？因此，我們應該看到的是，公司需要一段投資期間才能達到所需的服務水準、銷售水準和營運效率水準。

Yeah, I don't want to prematurely speak for our new CEO that's coming in. I'm sure he will be considering all aspects of our business and how best to move forward. So time will tell. I think that we're transitioning what I would consider to be a very robust base of operation and that he will determine where we go from here.

是的，我不想過早代表我們即將上任的新執行長發言。我相信他會考慮我們業務的各個方面以及如何最好地向前發展。所以時間會證明一切。我認為我們正在轉變我認為非常強大的營運基礎，他將決定我們下一步的發展方向。

Tim Mulrooney, William Blair.

提姆·馬爾羅尼、威廉·布萊爾。

Hi, good morning. This is Luke McFadden on for Tim Mulrooney. Thanks for taking our questions today. So just looking at your slides, does look like that gap between new and lost business continued to shrink here in the second quarter. I was hoping you could give us a sense for when you'd expect that to turn positive for -- just the outlook for the remainder of the year. Should we continue to see that gap narrow?

嗨，早安。這是盧克·麥克法登 (Luke McFadden)，代替蒂姆·穆爾羅尼 (Tim Mulrooney)。感謝您今天回答我們的問題。因此，僅從您的投影片來看，第二季新業務和損失業務之間的差距確實繼續縮小。我希望您能告訴我們，您預計什麼時候情況會轉為積極——只是今年剩餘時間的前景。我們是否應該繼續看到差距縮小？

Yeah. Well, of course, we're very optimistic that we will continue to narrow that gap as we go forward. I don't have a specific time period of when we would say definitively that our new would exceed loss. All I can say is that we are certainly ramping up our new sales. We're seeing a lot of momentum in that area as we mentioned in our remarks, specifically related to our field sales ramp as we've been investing in that team. And then, of course, you saw the improvement in the loss versus last quarter. So I can tell you that with is a highly focused area for us in both of those pieces and I'm hopeful that we will start to the new will start to overtake the loss in the near future.

是的。當然，我們非常樂觀地認為，隨著我們不斷前進，差距將會不斷縮小。我沒有一個具體的時間段可以明確地說我們的新收入將超過損失。我只能說我們的新產品銷售確實正在提高。正如我們在評論中提到的那樣，我們看到該領域出現了很大的發展勢頭，特別是與我們的現場銷售成長有關，因為我們一直在對該團隊進行投資。然後，當然，你會看到虧損與上一季相比有所改善。因此我可以告訴你們，這兩個部分都是我們高度關注的領域，我希望我們能夠在不久的將來開始彌補損失。

And we're now fully staffed and in our sales organization and our productivity levels are increasing. So as Kelly just said, I'm very optimistic that we will cross over including the fact that we will continue to improve our lost business.

現在我們的銷售組織人員已滿，生產力水準正在提高。正如凱利剛才所說，我非常樂觀地認為我們將跨越障礙，包括我們將繼續改善我們失去的業務。

Understood, very helpful. And then maybe just switching gears here a little bit, thinking about the demand environment. With all the recent headline news related to tariffs and more uncertain macroeconomic outlook, can you update us on how conversations with your clients have been trending? Any color around that we metrics or changes in demand conditions would be really helpful. Thanks so much.

明白了，很有幫助。然後也許只是稍微轉換一下話題，思考一下需求環境。鑑於最近有關關稅和更不確定的宏觀經濟前景的所有頭條新聞，您能否向我們介紹您與客戶的對話趨勢？我們衡量的任何顏色或需求條件的變化都會非常有幫助。非常感謝。

Yeah, we really haven't seen any groundswell of information around from our customers as it relates to their staffing levels and their needs. We really haven't seen a decline. Our new business is going quite well, which is clearly an indication of continued momentum on this, the very strong industrial laundry rental market. So we haven't had any anything that has popped up that would indicate that there's a headwind ahead. We are -- because we said in our statement, from a demand planning standpoint and tariffs, we're watching that, covering that, but again, don't see any real cutbacks from our customers.

是的，我們確實沒有看到客戶提供有關其人員配備水平和需求的任何資訊。我們確實沒有看到下降。我們的新業務進展順利，這清楚地表明了工業洗衣租賃市場持續強勁的發展勢頭。因此，我們還沒有發現任何跡象表明未來會遇到逆風。正如我們在聲明中所說，從需求計劃和關稅的角度，我們正在關注這一點，涵蓋這一點，但同樣，我們沒有看到客戶有任何真正的削減。

Manav Patnaik, Barclays.

巴克萊銀行的馬納夫·帕特奈克（Manav Patnaik）。

Hi, apologies. This is Ronan Kennedy on for Manav. Good morning and thank you for taking my questions. If I may, I'm just looking to quickly confirm three things to be absolutely clear. They were touched on in a certain extent in the prior three questions, but the results and suspension of the annual guidance that is primarily attributed to the internal challenges, right? It's not uniform and acillary services market. It's not necessarily the macro or the strength of the consumer.

你好，抱歉。這是羅南肯尼迪 (Ronan Kennedy)，代替馬納夫 (Manav)。早上好，感謝您回答我的問題。如果可以的話，我只是想快速確認三件事以確保絕對清楚。前三個問題在某種程度上都涉及了這些，但是年度指引的結果和暫停主要還是由於內部的挑戰，對嗎？它不是一個統一的輔助服務市場。這不一定是宏觀因素或消費者的力量。

And then on the much needed fundamental cultural transformation, can we just confirm how we should think about how long that will ultimately take need to take place, what inning you're in. And then lastly, I apologize if I missed this, but on the past two quarterly calls you spoke to having retained strategic advisors to evaluate alternatives. Is there an update there, please?

然後，關於急需的根本文化轉型，我們能否確認我們應該如何考慮最終需要多長時間才能實現這一目標，以及你處於什麼階段。最後，如果我錯過了這一點，我很抱歉，但在過去兩次季度電話會議上，您談到聘請了策略顧問來評估替代方案。請問那裡有更新嗎？

Sure, I'll take the guidance question and then I'll pass it on to Philip. So the reason we've gone to Q3 guidance only and suspended the rest of the year is probably a combination of us getting ourselves realigned with our forecasting as well as the fact that while we have not seen specific indicators related to the macro environment and our current results. Certainly, there is a lot out there as it relates to potential future impacts. So it's somewhere in between the two, and you know, we're going to go from there -- we'll go from here as we think about guidance in the future of how we will do that.

當然，我會接受指導問題，然後將其轉交給菲利普。因此，我們只採取第三季指引並暫停今年剩餘時間的指引的原因可能是我們重新調整了預測，以及我們尚未看到與宏觀環境和當前結果相關的具體指標。當然，還有很多與未來潛在影響有關的事情。所以它介於兩者之間，你知道，我們將從那裡開始 - 我們將從這裡開始，同時思考未來我們將如何做到這一點的指導。

Okay, and as far as the strategics are concerned, we don't have any active activity at this point in time, and so that's all I can say about that. We don't have any active activity in that area.

好的，就策略而言，我們目前還沒有任何積極的活動，所以我只能說這些。我們在該地區沒有任何活躍活動。

The cultural transformation, that's a interesting and provocative question. We are working to make absolutely sure that we're looking at some pretty fundamental things from a cultural standpoint. We can start with accountability to make absolutely sure that all the leaders, managers are accepting fully aware of their accountability, working very effectively, working on making sure that we're working effectively as a matrix organization. That's a part of this transformation, and make absolutely sure that we're working with our frontline teammates, listening to them, understanding what their needs are for us to have the success that we know that we can have. So that cultural transformation will take time. I can't put a date on that. I think a big part of it is going to be around Jim and our -- with him being our new CEO as we continue to to move forward.

文化轉型是一個有趣且發人深省的問題。我們正在努力確保從文化的角度看待一些非常基本的事情。我們可以從問責制開始，確保所有領導者、管理人員都充分了解自己的責任，有效地工作，並努力確保我們作為一個矩陣組織有效地工作。這是轉變的一部分，一定要確保我們與第一線隊友合作，傾聽他們的意見，並了解他們的需求，這樣我們才能取得我們知道能夠取得的成功。因此文化轉型需要時間。我無法確定具體日期。我認為其中很大一部分將圍繞著吉姆和我們——他將成為我們繼續前進的新執行長。

Thank you, appreciate that. And as a follow up, if I may. How should we think about what was the initially guided targets for the leveraging and a leverage target?

謝謝，非常感謝。如果可以的話，我可以繼續跟進。我們該如何看待當初提出的撬動目標和槓桿目標是什麼？

Yeah. Well, what I can tell you is that we are very committed to a strong balance sheet to delevering as a priority. And right now, I'm not really going to put out an actual target, but we would suggest that would be probably something that would be a little bit higher than what has been previously discussed in the past. Certainly not above 3, but something potentially that could be higher than the 1.5 to 2.

是的。嗯，我可以告訴你的是，我們非常致力於建立強勁的資產負債表，並將去槓桿作為優先事項。現在，我實際上不會提出一個實際目標，但我們建議這個目標可能會比過去討論的目標略高一些。當然不會高於 3，但有可能高於 1.5 到 2。

(Operator Instructions)

（操作員指示）

Stephanie Moore, Jefferies.

史蒂芬妮摩爾，傑富瑞集團。

I appreciate the commentary and kind of the backward looking kind of what has happened over the last several months and the likes. But as we look forward and you continue to stem some of those customer losses and offset those losses with hopefully some new wins, can you talk a little bit about why a customer would switch their provider to the likes of Vestis versus maybe a competitor? Are you seeing some of those wins come from maybe first time outsourcing or the likes, but I guess, just given maybe the events of the last year or so, maybe some of the service issues, what is the playbook for your sales rep to go out and win that new business? Thanks.

我很欣賞你的評論以及對過去幾個月發生的事情的回顧。但是，當我們展望未來，看到你們繼續遏制部分客戶流失，並希望透過一些新的勝利來抵消這些損失時，您能否稍微談談為什麼客戶會將他們的供應商轉向 Vestis 之類的公司，而不是競爭對手？您是否認為其中一些勝利可能來自於首次外包或類似情況，但我想，考慮到去年左右發生的事件，也許是一些服務問題，您的銷售代表出去贏得新業務的策略是什麼？謝謝。

Yeah, as you know, we have new leadership in our sales organization. But just as an example, in Q2, our skill sales team sold well over 7,500 new accounts. 44% of them were non-programmers and 56% of them were taken from our competitors, so that split is really good that they're going after and we're able to sign up non-programmers, but also that we're competing with folks that are existing providers to those companies.

是的，如您所知，我們的銷售組織有了新的領導。但僅舉一個例子，在第二季度，我們的技能銷售團隊銷售了超過 7,500 個新帳戶。其中 44％ 是非程式設計師，56％ 是從我們的競爭對手那裡搶來的，所以這種分成非常好，他們正在追逐，我們能夠簽約非程式設計師，但同時我們也在與這些公司的現有供應商競爭。

And so, when we look at our service level, we're telling them and working with them to make absolutely sure that we're providing the very best service possible to meet their needs and being again very customer centric around that. We've got some new tools that we -- and new processes that we put in place to make sure that we retain that new business once we get it. And then obviously, we've got to continue to work with our existing customers because we want our existing customers to, of course, stay with us.

因此，當我們審視我們的服務水準時，我們會告訴他們並與他們合作，以確保我們提供盡可能最好的服務來滿足他們的需求，並再次以客戶為中心。我們有一些新工具和新流程，以確保我們在獲得新業務後能夠保留它。顯然，我們必須繼續與現有客戶合作，因為我們希望現有客戶繼續與我們合作。

And we even want to go beyond that. We actually want them to recommend us to others, so that's an even higher bar, but so whether it be service allergies from the competition that they're having problems with that we're going to fix or whether it be at times price may do it as we look at being competitive, but again, 44% of our new customers are actually no programmers.

我們甚至想超越這一點。我們實際上希望他們向其他人推薦我們，所以這是一個更高的標準，但無論是競爭對手的服務過敏，他們遇到的問題，我們都會解決，或者有時價格可能會影響我們的競爭力，但同樣，44％的新客戶實際上不是程式設計師。

Great. And actually, I just had one follow up to that. I just wanted to confirm, I think, in prior quarters, there's been some management additions as you just called out, and you had a sales, COO. Just confirming, both of those individuals are still at Vestis?

偉大的。實際上，我只是對此進行了一次跟進。我只是想確認一下，我認為在前幾個季度，正如您剛才所說，有一些管理上的補充，並且有銷售、首席營運長。只是確認一下，這兩個人還在 Vestis 嗎？

Yes, our sales leader, Senior VP is still in place, Pete Rego; and our COO and over operations, Bill Stewart is still in place, yes.

是的，我們的銷售主管、高級副總裁 Pete Rego 仍然在位；我們的營運長兼營運主管 Bill Stewart 仍然在位，是的。

George Tong, Goldman Sachs.

高盛的喬治通 (George Tong)。

I wanted to discuss the broader selling environment. So revenue declines in the quarter widened even though comps were easier in the prior year. Can you just elaborate on what could have caused year-over-year revenue declines and how much of it was due to internal issues versus evolving competitive dynamics versus macro considerations?

我想討論更廣泛的銷售環境。因此，儘管去年同期營收較輕，但本季營收下降幅度仍擴大。您能否詳細說明一下導致收入同比下降的原因，以及其中有多少是由於內部問題、不斷變化的競爭動態還是宏觀考慮造成的？

Hi, George. Let me make sure I'm understanding your question. So for the year-over-year revenue decline, they're driven by a number of things. One is we did have the lost business that did exceed the new business. Obviously, we're narrowing that gap, but certainly year over year that was a fairly significant factor. We also did have the adjustment, the lower volume with existing customers, I think it's a very similar conversation as it relates to some of the service discussions that Philip had, service items that Philip had, some of the credits, and as well as potentially some of those changes in inventory demand depending on some of our mix of customers.

你好，喬治。讓我確認一下我理解了你的問題。因此，收入年減是由多種因素造成的。一是我們的損失業務確實超過了新業務。顯然，我們正在縮小差距，但與去年同期相比，這無疑是一個相當重要的因素。我們也確實進行了調整，現有客戶的交易量較低，我認為這是一個非常相似的對話，因為它涉及菲利普進行的一些服務討論、菲利普提供的服務項目、一些信貸，以及潛在的一些庫存需求變化，具體取決於我們的一些客戶組合。

We also had a reduction in direct sales related to the loss of that large national account we had talked about and that had a relatively significant impact on the year over year. And then last year, we had some unusual positive exit billings for a couple of our customers that did not repeat this year. So those were the larger items that caused the year over year.

由於失去了我們之前談到的大型全國客戶，我們的直銷業務也出現了下滑，這對同比產生了較大影響。去年，我們為一些客戶帶來了一些不尋常的正退出帳單，而今年卻沒有出現這種情況。因此，這些都是造成逐年下滑的較大因素。

I'd say we are not attributing really any of that to a macro environment change that's happened from last year to this year. And in addition, we think that we've made a lot of improvements in recent weeks and months as it related to some of the drivers that drove that reduction. So let me know if that answers your question. Happy to add anything to that.

我想說，我們並沒有將這一切歸咎於去年到今年的宏觀環境變化。此外，我們認為，最近幾週和幾個月我們已經取得了很多進步，因為這與推動這種減少的一些驅動因素有關。如果這回答了你的問題，請告訴我。很高興能添加任何內容。

Okay, no, I think that's helpful context. The question stems from the fact that the sort of the two-year stack on growth seems to have worsened, so it's not really like a comp issue from certain revenue streams or lost accounts, but that's helpful color. I guess if you look at pricing on slide 4, you disclosed $3.5 million of revenue sequentially quarter pricing. Can you talk about how much the year-over-year change on pricing was and what your overall longer-term strategy for pricing increases will be going forward?

好的，不，我認為這是有幫助的背景。問題源於這樣一個事實，即兩年的成長疊加似乎已經惡化，所以它實際上並不像是來自某些收入流或帳戶丟失的補償問題，但這是一種有幫助的顏色。我想，如果您看一下幻燈片 4 上的定價，您會發現按季度定價，您披露的收入為 350 萬美元。您能否談談價格年變動幅度是多少，以及未來價格上漲的整體長期策略是什麼？

Yeah. Directionally, year over year, the pricing was a little bit even less than that. It's really kind of incorporated into our change in existing customers, that $6 million that we talked about on page 3, but we're seeing a relatively similar trend as it relates to pricing.

是的。從方向上看，與去年同期相比，定價甚至略低於這個水準。這實際上融入了我們現有客戶的變化中，即我們在第 3 頁討論的 600 萬美元，但我們在定價方面看到了相對相似的趨勢。

Okay. So percentage, so are you seeing 1% contribution from prices are (technical difficulty) pricing down is a negative 1%? What kind of percentage can you provide?

好的。那麼百分比，您是否看到價格貢獻 1% 是（技術難度）定價下降是負 1%？您能提供什麼樣的百分比？

Yeah, relative pricing year over year was certainly a bit of a positive as it relates to that, and it was in a similar range of what the pricing was here for the quarter.

是的，與此相關的是，同比相對定價肯定有點積極，並且與本季度的定價範圍相似。

And this concludes the Q&A portion of today's call. I'd like to turn the call back over to Philip Homan for closing remarks.

今天電話會議的問答部分到此結束。我想將電話轉回給菲利普·霍曼 (Philip Homan) 做最後發言。

Thank you all for joining us today. We believe there is a significant opportunity for Vestis in the attractive uniform and workplace supplies market. We have a profitable business model with financial flexibility to achieve our objectives, and we are moving with a sense of urgency to enhance our execution and strengthen our core business. These efforts will set the foundation for sustainable, profitable growth and long-term value creation. We look forward to engaging with you further in the days and weeks ahead. Thank you.

感謝大家今天的參與。我們相信，在極具吸引力的製服和工作場所用品市場中，Vestis 面臨著巨大的機會。我們擁有盈利的商業模式和財務靈活性來實現我們的目標，我們正帶著緊迫感採取行動，提高我們的執行力並加強我們的核心業務。這些努力將為可持續的獲利成長和長期價值創造奠定基礎。我們期待在未來的日子裡與您進一步合作。謝謝。

Thank you. This concludes today's Vestis Corporation fiscal second-quarter 2025 earnings conference call. Please disconnect your line at this time and have a wonderful day.

謝謝。今天的 Vestis Corporation 2025 財年第二季財報電話會議到此結束。請此時斷開您的線路並祝您有美好的一天。