Republic Services (RSG) 29 Oct 242024 Q3 Earnings call transcript

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

welcome Republic to XXXX Third like Call. Conference would everyone Services to Quarter I our Brian performance. CEO; are Ark, Vander John and call to on DelGhiaccio, today discuss our the CFO, our to I to from be we on risks financial call would today's materially and actual forward-looking that forward-looking including which take moment different discuss statements, like contains information, some remind a uncertainties information everyone results. involve may and

material materially that factors that could actual from Our time expectations. differ The discuss SEC discuss filings sensitive. we results cause is today to

or in to Please expressed If XXXX. rebroadcast without you this any this a form or recording call, the consent the strictly in sensitive date original XX, written of be is October call, note conference rebroadcast Republic that which Services, future, retransmission call you call the Republic is of prohibited. property Services the of listen of is Inc. of redistribution, should to this Any

tables includes our filings, of are SEC Our website with available the on activities, at this reconciliation earnings discussion recording call, Republic's release, which of business along republicservices.com. GAAP and press a

on I'd I times When call investor presentations website. the events scheduled, management remind date that over like that, our to posted Jon. routinely turn conferences. participates to are are With you want team to in and Republic's the

creation. the quarter value Good solutions to Aaron. and innovative effectively by results our executing deliver needs third Republic us. afternoon, profitable world-class of customers. our continues strong growth to Thanks, everyone, that and delivered and joining thank Services for meet We service strategy supports team you The

margin XXX earnings XX%, generated a year-to-date achieved X% basis expanded points, we on of of flow adjusted adjusted and per cash quarter, $X.X $X.XX share and the adjusted produce adjusted billion free EBITDA During basis. growth reported growth of by of EBITDA revenue

to well long-term our differentiated to we our value for stakeholders. yield, opportunities positioned capabilities, digital customers create sustainability, new capture be and continue Through and

to continues and customer essential focus delivering enhance our on , support customers loyalty. organic world-class services Regarding growth

rate Our customer strong XX%. retention than at more remained

pricing Third drive across points and quarter organic EBITDA was help strong on yield Average exceed average by and revenue basis continued X.X%. margin X.X%, related expansion. This pricing business. total the inflation cost on XXX our revenue yield of revenue growth was level of to driven was

Organic X.X%. volume revenue total Volume waste and concentrated business, declined special portions were the on of losses cyclical heavily And including activity. construction to our

expanding our to digital Turning capabilities.

the both underway. to We advance continue implementation Empower maintenance warranty fleet customers employees. to increase improve and designed of of our tools anticipated deliver and Deployment Empower for Deployment is technician be the digital is XXXX. cost system annual implemented. the enhance management to recovery. Empower, savings by once new fully experience and equipment of will million productivity We of end estimate to new completed $XX system the is

recycling on We routes. benefit continue our collection from to technology and waste innovative

Our of recycling incremental generated This technology more platform than year identify first operation. in to utilizes cameras million in contamination. the overfill revenue containers $XX and

long-term on and us that value continue grow and Blue forward. creation. investments venture natural Polymers renewal to We continues our innovation create sustainability. of gas to move sustainability centers position circularity and in Moving polymer to Development facilities our believe joint plastic

facility. Center with a the production center co-located is Polymers be equipment throughout on Polymer continued will to with operation quarter. Indianapolis our increase This Construction volumes progressing Vegas commission. polymer blue As production initial

blue facility Polymers Buckeye, construction year of contribution expect production facility earnings year, Polymer by on XXXX. this Las facility a broke We complete with half the second to the will be in recently ground this this We Vegas Arizona, on complement in of the Center.

XXXX. late in facility this of completion the expect We

Two with value the projects. year The to developing online completed communities to our our renewable natural projects during to X total we market We bringing third the for advance. this that of unlock gas quarter, solutions serve. the we're the came will all stakeholders to projects partners continue bring continue decarbonization including

completed quarter. RNG fourth to We additional projects X be during expect the

We in XX continue the in the commitment We and to our have advance vehicles operation year. electric to by than EVs more to our expect fleet XX fleet end currently electrification. have of collection

have scale charging XX infrastructure. We facilities commercial with EV

to part As sustainability, we we are to approach our of choice an markets serve. in committed employer of being the

points work eighth to more third year. than turnover quarter be consecutive are great and proud certified employee to to the Our as rate compared we for improved the XXX year prior a basis place

to invested million in respect year-to-date, strategic capital With $XXX have allocation, acquisitions. we

$XXX We $XXX recycling solutions. to acquisition Our end and of both by currently than of the will pipeline includes close million year. I to of the Brian, that activity call in and will returned more transactions the expected on continued waste million which remains environmental have of provide now shareholders, supportive million share are the details repurchases. $XXX turn who to quarter. Year-to-date, over we

revenue related related open Thanks, which of and pricing on Core included X.X%. revenue Jon. X.X% X.X% of pricing was core of The was components price market core price X.X%, restricted residential price on X.X%, on X.X%. total X.X% average container yield large and on of revenue Average XX.X%, yield on revenue was related small of of total and X.X%. container included revenue was

our impact recycling of average As platform. implemented overfilled to enabled year. contamination relate fees began and and The containers down by expected, were anniversary sequentially stepped digital new as yields fees to we last the

on and Third revenue quarter on X.X% volume related revenue decreased decreased total volume X.X%.

year. included continued decrease municipal of in contracts construction-related due in in a to X.X%, large of in due to softness lost primarily primarily activities fourth XXXX anniversary Volume container X.X%, quarter a in this decrease of than residential the results

volume decreased During the XX center increased XX basis landfill MSW points. quarter, while basis points, small

OCC. per or cardboard, by are reflecting were year. compares to prior $XXX quarter. quarter. sales per recycling. the for in in ton on increased the Moving during This the per $XXX Commodity processing commodity a ton XX recent $XXX the price during prices and Commodity points currently to Recycling prices ton basis decline third revenue recovered

recovery expanded of XXX XX EBITDA business underlying a in points points, net fuel, point year. by XX This in point acquisitions performance XX from recycled from related completed basis commodity margin the from a offset basis insurance point prior increase decrease an increase margin prices basis adjusted XX company benefit year. prior Margin basis expansion XXX the partially basis was XX%. the to point a a a quarter, basis Total and to during from

Solutions turning our Now to Environmental business.

quarter acquisitions. $XX Third driven contribution million year, from increased the revenue prior to Solutions Environmental rollover the prior compared year by

points to an allowance in margin an XX.X% debt in prior basis XXX to included and Solutions expanded Solutions Environmental XXX quarter. Adjusted a in a prior margin the bad EBITDA positive Solutions XX.X% margin established was Environmental EBITDA year. for basis Environmental third the the business adjustment year. points from in

from or $X.X spending fourth benefit, the prior an Environmental liquidity this due total year. and capital Prior been XX% free year Excluding in was expenditures $XXX cash compared of billion were The was impacted to equipment year timing delay and adjusted is of the have weighted vendor-related million XX.X%. Solutions the in to in $X.XX by ratable margin more of billion. $X.X the total Capital billion. XXXX XXXX, billion primarily quarter. expenditures expenditures. heavily represents is $X.XX prior whereas capital Day increase deliveries Year-to-date, truck capital would flow net decrease

rate I timing by driven equity This investments energy benefit the quarter quarter. our over during favorable impact primarily during quarter. $X.XX the Jon. X.Xx. to contributed investments of an Our respect in end energy hand was the of With leverage equivalent rate now in renewable of taxes, tax tax back rate of renewable at XX.X% EPS combined in from and approximately the the will resulted to equity impact

low the this of more to Thanks, said, achieved revenue XXXX, trending headwind overcome of year continued high Brian. full full guidance we expect to cyclical With and respect we toward the revenue to in volumes. end That are EBITDA year our guidance. softness adjusted than end our believe due we

As expectations. to a EBITDA our we margin outperform result, expect

continued opportunities. expect of Looking pricing acquisition of forward value-creating supported our products costs, and the services business by underlying capitalizing to ahead growth on set across XXXX, complete cross-selling and we

and of financial remain margin that supportive our plastic made natural the from cash growth investments continued flow free underlying and gas business and also innovation, business. expansion projects. along in strong in the revenue, contribution including sustainability believe EBITDA We fundamentals the in expect We circularity of renewable with

Over faster the deliver EPS mid-single-digit consistently and business revenue. flow believe we grow revenue than EBITDA, free and cash can growth our long term,

We perspective on initial Our to provide earnings operator, with algorithm. I XXXX open this plan year detailed call guidance full on our growth would to long-term questions. the XXXX With is consistent that, call to like February. in

[Operator Instructions].

Revich Goldman with question from Sachs. Our today Jerry first comes

tailwinds the could looks in to quarter, the I'm impressive just look like type any you about step onetime that performance. XQ versus seasonality Or as a more I quarter is margins the in guidance, if guiding couple are items just beyond fourth third you to wondering there spoke [ expand I'm points down other normal quarter Services. any embedded conservatism? there And that item were Brian, that really than it ] of XQ. you're at Mineral wondering if other in debt

would Thanks, we're the called out large and the at we somewhat third two a quarter, that the there pieces for Yes. Taking quarter. sit Jerry. look and big you say, unusual

to of the impact basis out well. XX insurance We as the had points bad debt which the recovery, quarter positive a itself. So an called

to So basis taken it enterprise about the as Environmental points a was to basis contribution point Solutions, XX XXX whole.

were the that, I what the pieces basis saw out and mean, fuel prices underlying strength So points, doing, bps. but ex that XXX the say, of XX rest, you business, I the commodity about called

just I updates and folks the ask played the any shared. polymer plan? production the you can talk And performance lines How about the And impressive expand out center far? versus shift has you can if then so time rollout, on the Really initial that on gears, previously to performance. to you ramp

equipment in on happy We terms our little equipment. have we all forma liked things of we're volume We're a terms certainly on for later off Yes. the start We're the beating building. pro how that. would is happy the to Sure. of that to than pricing ramp got unrelated really getting. in

the Maybe begin and there, the in the our we delayed with. just Those So the confident but aggressive getting the start feel things [indiscernible] the construction delayed from we a time. were very permitting than things start, all line building envelope. electricity little assumptions a of around still in. in, other to time facility, getting underlying take

is marks, India the including And there. construction its line time hitting

some producing world. feel the we're we of we about the good Listen, that. think in like cleanest So really

And so well. and market our to good what as for that's certainly be needs. good going shareholders for the circularity It's

question Trevor Blair. today with William from Romeo next Your comes

the market -- Had one thinking on of open about on kind pricing, versus restricted.

the been basis if even forward, last us some quarters, points restricted. of more entities those that And price XXX or to continue open do spread market down. kind further your good indices shift the about and you kind at of of this market much several more away going Is for continue then from alternative open think a to think above room think has core point? I still shift to you have of your inflation ramp to in that CPI how

When a in backdrop environment step thought said And part down and of to at you into take expect spread, elevated as sequentially. And an step this in there XXXX, about we certainly the to pricing would inflation. talked we've that that look we was year, as throughout were fact that that forward we the well. that we look elevated down would due we the fact the

spread But say Now, you would if expansion has in on would back that with in I run of portion which right the the the probably about market we've restricted now drive above look consistent what excess to to our historically, bit that business. said, we done achieve you pricing cycle. would the can price business. of that open through a what over I little more you expect inflation all take cost is margin last a couple the than think tend of

rotating [ or And terms progress CPI, make continue to from [indiscernible] we from moving on that. then the of in away industry ]

some us that So across couple positions men, well portfolio and of to sewer we moving really water big to cycle. fixed the moving it's trash, the contracts think above it's and

CPI something headline have that we're that that of historically we contracts those would favorable. Yes, moved were to about consider XX% to pegged

it. Got

just helpful. talk bit. if wondering And then quickly, could Okay. labor availability That's about a we

availability? labor digits. on has as changes the Curious think mid-single BLS past as the still of overall data, that's labor the few cooled seeing I based wage months? kind bit what Have you're of you industry a the inflation And seen if it well. market maybe in any is kind

We mentioned turnover down XXX basis year-over-year. points

increase we at the We direction trend are like ] front, tech of down give a on success based there. people out sort wage Vail our having we Labor to there. pointing. where have On next techs to out marginally -- of in really into tougher. year And that that move you're largely baked categories industry because numbers that we've the a as is cost education cake Institute And own inflation which been continue we're really right [ start again, February. X.X-ish tough is positive lot entry-level getting in why current still then end are technicians, we hanging growing of yes, step in our improving. is Labor a and that and integrated technical of this There's historically our center. and own into That's fielding we

question And Morgan with from comes next today Stanley. Kaplan your Toni

was to terms the it Anything price of quarter? I we be was additional the call the was thinking the some anniversarying through progress that last know Obviously, expected. we environment as deceleration from price that that hoping quarter you on color to out of ask and in fees core else point how you the in for new the this mentioned I year. about would notable to should year.

Yes.

If And sequential you our look from the X.X%. on the take price business to just out step that's portion QX, down I point also increase QX perspective. went to that a of restricted the from X.X% at

themselves. just mentioned as we our long would again, business. And that So that And and down I that's maintain spread, how cost inflation. margin the in previously, is that's the step We so reflective sequentially, it drive right? indices we can expected, as as of again, as expansion knew

on to side well. want would about to softness. the I in volume continue continue those special construction Great. the And you call know the else anything be mentioned as ask out we and did helpful. trends the waste quarters? expect I upcoming to Should volume And to

slightly Yes. to Look, flat a across industry in think from environment unit the negative XX last months, to demand I the we're XX standpoint. a in

hasn't permanent, a right, driving that. a It's gaining about where or in probably been that true it's it's and well the On talked So of it also container front, understood. business, bit the side industrial cyclical portions a large we're little customers.

we're relatively side for to at So whether to on be it side, the share months of commercial in the happens individual front. X to and I'm or customers and on on activity we're Look, XX X but seeing happens soft continued that both there, construction X gaining has business that months, this optimistic in residential.

with aisle sides last We've helps the policy. talking underbuilt United certainly that. about down coming in both single-family rates the housing in Interest you've homes got of States the XX years.

we're are a interesting lot fourth then moved demand actually front. we're move been to paralysis pent-up jobs election an but see pipeline in And and really there's so and little of on and there's on those quite and bit that to industrial a activity, year, here all always strong that's some starting And waste in jobs of haven't a starting year, the signs see the starting to here quarter. special

the of and the optimistic certainly for pretty remainder we're year XXXX. So into

question next today Chang comes from with CIBC. Kevin your And

Congrats good on results. some

mentioned call, here. M&A the just on think on QX you I

think, at $XXX here. You booked about that advanced a It looks I in about you had $XXX like pipeline million QX stages. million mentioned,

we through Just pipeline is of think work update think kind close year-end. wondering that Or as something $XXX is can that incremental as you that of that by there you to an pipeline? you million,

coming off of X backdrop, really years M&A. broader great Maybe

outlook going flow. our and and hasn't at dwindled There's forward an changed. ebb not certainly has M&A to commitment Our our optimism

big So year. we half a off QX this of closed bit last slower first a start little deals to a year, couple got of really in

indicator what closer million more together gave at quarter, year the I the $XXX like the close year. what $XXX where of this we're in and start we of think if to to million you you fourth already we've expect an done put we

lot here, year A deals to a next front. are those of to that build us so really have starting good and I half expect on first

and to M&A contributor a gives next we front. remains year. that of for our you So movement our be strong, outlook a the that meaningful our that enthusiasm on and in expect sense But --

XXX fleet -- targeting, is I month will And I No, my will I electric EVs. growing here, seems could half one an new XXXX think of you're commercial is the helpful. And just purchases pushback be think hear be for we vehicle about of other adopting order ago, whether about that's electric ready. to not when guess, in ready vehicles. technology place second think, I you operators, a this technology, guess on I arguments be yet infrastructure or there a not

that keep of line, guess, guess looking with of strategy from kind have just ability you EV just their the I XXXX your in how time I out to X see targets think you years pace, as the you now? Just

Yes, be system, I the people get that understand of we've so kinds learned that faster it's need truck, how you a EV and experience after that to isn't people move move definitely a mean all in and will early. to that slower. just from put infrastructure

that a that that's sacrifice which to not their that you can incentive on working to we've enough that the allows for from battery You need you adoption And truly to the was space EV period, because to vehicle vehicle. somebody unlock studs No changer that is ever a full that. or power had, always understand run that payback up certainly before going without a Oshkosh done productivity payload. our design in is teams day that And accelerates shortens on and the until game on had vehicle. the and we're And get parameter building do the X years. McNeils because front sacrificing one's environment we

thrilled are the running. that we we're So product with

be move, medium but term to of the I is OEMs. and there's sense terms get certainly Hopefully, other adoption. be of in they think This to in pace to going losers people winners one there'll short there.

with Capital. next Konark from your Gupta question comes today Scotia And

everyone. afternoon, good and Thanks,

to maybe items Just talk the on up XXXX catch M&A on in you side. closed what have the Do rollover the you wanted effect today? housekeeping first about on based

Yes. impact. rollover The

expect see we growth. It's XX now to basis XX to to this right would 'XX point. points So at relatively negligible

acquisitions talking if probably are obviously, about then. And to the out you're Okay. QX, you there's some of upside in maybe

that, That quarter. rollover be closes the the is through third impact would correct. anything Because of quarter, that a actually is fourth in which that only includes there closed

is Makes then on question my the sense. margin And side.

like to this you QX, look just basis I drops some of what takes you're kind if ramping puts for as the into best of sequentially next proxy expanded sure. the then your QX year margins some expansion the year. margin fade But at about and trend an thinking up, of are talked I'm year? of the next margin some about of kind of so are the then of So maybe on have thinking the and might circularity sort far, these headwinds nuances margin some on 'XX, for What's away heading and projects thinking implied

of the code to in expand not of, that faster into our that. we this cycle, was or in margin EBITDA Yes. We're flow but faster giving grow go in digits margin terms certainly margin want than to we the points. then prepared ZIP going XX remarks to that, cash is that, expectations about we've Obviously, XXXX that expansion be EBITDA And implies certainly to to mentioned think, stronger EBITDA margin business. in an of next is grow free talked the I slightly year outlook we're revenue guidance, EBITDA would than than year often going and investors kind and mid-single of that we basis and XX but which how across slightly kind

from question with And David your Manthey today comes Barrett. next

that [ ] XX%. believe than I Solutions It's in is since you less ECO said acquisition Environmental IDA and X about the years

give mix stand-alone pricing? million delta can the XXX, as is the improvement of improved XXXX, there I to ECOl probably up that remainder? think picks points. just you you us were back well? Going like Is benefit basis XXX in and help Any million kind any synergies $XX there? $XX targets of Is there, acquisition that Or

Yes, lever. all above, listen every it's

revenue customer So it's mix. -- with out starting on the side,

willingness and are profitable verticals and less verticals what where through the we're and profitable pricing power So going more we pay to verticals. understanding have

churn of experience we've found to So certainly are space customer pay you've valuable people a to our price year seen [indiscernible]. some services period lots quality lower as willingness that that want and few of in this for and because a time pushed

is in management, give cost there pricing to pricing, the And tactical of pricing, certainly still systems team then cost lever account put going kind labor technology discipline, the level better that looking better of front. And members and at then on the top tools just as forward very -- our right, there more good utilization. every upside, we

labor. you're side As services utilization especially markets able bigger, field we get the rates deploy therefore, labor in get to different of on in business, the and better that

an of and that the thought high the flow forward. progress than grow made we and really to I units margin get course, We midterm of and of across there. have think proud and done aspirations but and we for the XX% target, business going we've work could ebb So to faster both we team said originally anticipated there's we've quarters,

And Truist Tobey comes Sommer Securities. your from question next today with

sort is that following coming on digesting up I'd Ecology perspective Services I the incinerator business. changes can view Just you there's What's online. love long-term an -- to think of And and margins the approach capacity, over you many market your the think incremental disposal on your net? your Environmental your get in US on

just be Yes, that longer see lower the free margin in time, business. intensity business business cash constraint cycle, about of that the waste EBITDA XX% term, the don't business. couldn't waste flow very to given and a the of the across with why similar recycling recycling capital converges Over we

complicate of streams. environmental to lot requires handle those a of limited compliance technical outlets on front. appropriately products, are Just The These given the right? very number that

service, we're to time. a it's for continue think going that we valuable so price to and And very over

will a that long it's constraint. that online, pent-up an because as terms incineration don't new coming that, and or capacity opportunity new for see In The a challenge demand of there's short We period industry to of a that we welcomed. supplied be fulfill. as has able see been time,

wondering it's the technology, anticipated you In terms slower the been targets year-to-date. as I M&A, little profile extent than bit of margins was at. margin if to speak well a of fleet, that the as the pace could I to you're had targets wage the supply sort other generally? have of that of factors I'm chain actually looking pressured wondering of growth, the

I and Yes, of disciplined. of not going Again, to the -- ebb pace M&A. mentioned flow stay it's we're

at X we in I this, we think to one that just close opportunities fact, we're [indiscernible] be very looked every of disciplined. we we're Eventually, look going at. Because those.

our that. First are is the does it going So strategic meet it financial owners and meet national to on B, fit have our hurdles to this? we A, is stream for

And for double post so that. returns we're digit looking synergy on cash-on-cash

So lots And ebb of going there's flow to and remain again, we're very conversations. disciplined.

break Sometimes changed. little has front. again, a we're but not And enthusiasm things those right, now, in sometimes in take longer, that's quickly they that and our period right the

become oftentimes has margin recapitalize it the about less these more about trucks, it going to park businesses, because today to the fleet. what profile, right? the We're going can and of terms in what it's In we're

amount into are because and we going to over same of much the into so drive deals. so routes will work some system and those we layer it right out that's the Some why our of right? we layer We of IT do can take won't our come in systems, these value [indiscernible] drivers

Brown James. from Tyler with comes today Your Raymond next question

couple questions I here. a of got

digit if QX come use the bad want around in it feels Or $X.X little the you've But from So guide. XX the to is first, am still I points I high implied missing is I conservative? rate. high normal to And QX but of is than that insurance, it get got which single I which worse billion, implies debt just think down something? back that a kind end, basis I seasonality.

markers opening the plans we end would our lot I really put don't about margin a where EBITDA guide, guide. you revenue of We right, tienergy front. focusing QX. decimal that good in high We're year. on the getting on the up -- end of getting to remarks, going of talked That's towards of feeling guide. low about end We the we're updating on accurate, XXXX we're end gave level the the so say the were

the be from fair. That's of there? then hurricane QX, efforts cleanup guidance on in there just in Okay. And implied kind volume is any to clear benefit

Again, There we may bit. be certainly. a don't on that, plan little

a Sometimes nice these. lift a of out you quite coming get actually

less a than think you get focus Sometimes of taking about our care our people. first, primary is, you little

Some we of work in we're have to get can to them on on feet, back gate. And end, front. comes, that making that then that get been [indiscernible] if that back on on when the especially oftentimes, But end back deeply up that's icing their them And impacted, on feet. more. going pay back their some for they're money helps just they so the

on number next I you polymer, And pieces, quite mentioned a because mistaken, not online, actually going pieces, you actually have a then of blue year. if I I want plants because think coming to I'm There's different kind of come at bit bit 'XX think a discrete there's moving polymer little that.

million still have of platform that think savings there. you go $XX I think incremental RISE has your should maybe you get, to I benefit some

Empower benefit -- some a from to have on think RNG. be benefit, modest that's comes I at going you least should

Brian, I be but very $XXX So million, those know kind can, drivers million? much all would buckets helpful, help But can don't $XX you maybe do if you that can. it together. any Just Is 'XX? you if of broad incremental how bucket

Yes.

Let's those. take

$XX 'XX. polymer and blue 'XX EBITDA. million right? to next RNG about million about an which the $XX think of would expecting Let's would over year, about if million So It's revenue you polymers, we're portfolio, what include be $XX sustainability talk innovation, incremental, just from and worth center of so this

coming by accretive the to margin the primarily again, incremental of in nice RNG So side at that. portfolio, a driven

deployed. deploy going 'XX, would that we the expect in to fully that as As we just from business will do expect Empower. remember, to we're And we exit we started phased approach. that deployed year. you the units initial mentioned, throughout so that benefits And But be getting some a are system, be

million $XX benefit of out called we run So rate. at

From that So to about we're realized So the 'XX $XX and the over can product the those we're a run -- think in the so million your generating, this talked of rate. year, that had but QX realized that's would and about RISE that that being of kind in we fees and throughout half have question got to already in some we've of about in, right? go. starting that to on of of we've year. perspective comp fees, more million we've from $XX in a you or platform fee

can about think in half in coming and You half 'XX, of that 'XX.

Okay.

perfect. Okay,

So there's into 'XX some 'XX.

Now thing based what will in the there today be, [indiscernible] is, on know headwind? we other

talking credit? about CNG You're the tax

Correct. Correct.

Yes.

assuming not we followed are and in We the just 'XX, that law.

And that's to now, so right again, expire. set

our not that 'XX. that included us, about million. runs projection So that's -- $XX for for And is about in

Sorry, XX?

next today comes Stifel. Butler from Your question with Brian

that talk then, can one, the quarter? guess, has first where quarter compared I Just CPI headline kind running have fourth the in XXXX, been we to of maybe and look was any that if in the trending about as you what inflation how internal does third color? And

story, good inflation seeing come Yes, right? that You're a down.

certainly reasons. real couple our cost overall getting and and pretty was categories. improved about the we're So that's running from and different There's that in inflation. Maintenance X.X%, truck good of a I highlight category takes terms indication hot last a mentioned One, that's lots deliveries. of and the of some in years, puts labor the of is

outsourcing that. older more then maintenance continues it also pieces parties, that's We're modulated doing deceleration. we with work parking new so turnover continue and versus inflation those our labor less to third that certainly rate. Parts on as continued putting trucks XXXX, taking And well to modestly improve decline. intensity. are on So a out expect trucks into to internally and cheaper And helping all

you then And rolls sustainability on through Great. in what for what versus attached kind into about spent spending capital buckets how that's to think went when that Okay. was the we the XX XXXX? of should ePower,

consistent. Relatively

investments, NG, a remember, we're in in we're about you you those doing we're when think structure. when when investing what If that's JV making

this revenue. do think from as to CapEx. So change CapEx an we're polymer what does but that it slightly EV of what to like But and nothing when expect those about to on we an perspective, par hope you than we more would when percent acquisition you through did a center year, higher, going be about think comes the

And your Noah today comes question next Oppenheimer. from with Kaye

could well, quarter, margins achievable you And I over here time. said last EBITDA think we are. XX% be

I So ask Environmental to done. well Solutions. about want

you how I largely the to the due for shaping talk about the Can quarter, mentioned just up? maybe revenue acquisition think pipeline prepared you in see the in organic growth. remarks, it trends you was the

to some to that I They bounds services mentioned, high-quality with also engaged standpoint, those we're customers And Ultimately, back oftentimes from customer we are has test to And And know where come standpoint, service, come around. with standpoint, value. provider. back Yes. also you There's that marketplace do customers of believe when the them with the front. to valued. experience different that a are safety sustainability which a a we that highly on going digital certainly We willingness there churn, have pay. leader continue the -- been right? as in

-- this take that choose, trade-off when more to year little forced standpoint exceeded pricing And than from So our I'll all day. we a obviously expectations. volume flat flat

in Now we grow I to that we'll the that to push do and plan stand want have a price, team XXXX. above

segment? to ES And like right margin overall overall, basis XX to business. maybe the some the talked for of of bps on an think about about the talked point, about be faster pace bps level annual of to thinking that reasonable the versus sort you XXX for about you

Yes.

talked to points we we've you take pace that's could where years But in kind a faster lower. some think think cycle trend, be XXX little basis if and may a some ratable margins. XX the across look the at years I out I about of

next Markets. from question Capital with comes Sabahat today And Khan your RBC

Great.

Just a on follow-up the last there. question

like maybe that cost of easier in your things headline having sort all? are than harder willingness ago a and inflation that you Just of to terms of the is it the year level just or moderating, the at and was discussions it over directional their the you're it's absolute spread cuts of customers with rate helping And as sort base? give finding

go in hard inflation, front. time, costs we're say over economy that know down. that because really up looks real certainly crashing that's their the we're I low we was do good We've bring right? as wage lived period be. really period what going the to us that time. inflation workable to would a end they'll because a Fed incredibly as in pretty on like, a people that's a unworkable what of and world a be for broadly, up We've will are our and if a that and that's to every high of seen for inflation, to spot very give going X.XX% increase of year

again, is be. for a X%, really that So kind of living good spot us to X.X% in, zone

perspective Great. And maybe on. some the volume can you then just if just front, give on

and what you cut, the if churn next come as on where on there's units? on perspective rates unit then in economic get more, activity think maybe some -- And to ideally, growth think you're I volume pricing are 'XX? cyclical you I the indicating the of volume front, year, still that's secondly, you're want just your these seeing any

Yes.

the and from that churn as we going work in we going that going don't terms customers. waste of upgrade to mentioned those time work municipal some know always broker people customers. There's in likely know generate We are who treat or we I some every replace and we there's to do think past contracts. treat I some that as price, there's be to recycling that M&A, that a we're going be to We [indiscernible]. standpoint,

that's on from Canada down We're out and to certainly is business front. of sure, down that construction our this quarter-over-quarter. a turned portfolio. is listen, for the seeing the And that large cyclical year-over-year unit get the So going volume, standpoint year

underlying pieces look have construction back, together, that's the seeing really behavior which and that. and seen the what is, this reflection environment, what's broader you in And think the I good activity. given, so all really a And demand just news again, put of happening is when just not right, take And You're would pricing I you flat, conduct think good right? years XX you something a performance. south if of

people You and price. wage And your doing go increase a apparently trucks would to that it's chasing need and year, parking others keep are what try every units right, and seen out have to we're people to have vehicles understanding utilized. to important and

think really that's rationally And I a and you're market so behaving seeing that's beneficial.

growth as be X on indicators months, And horizon, volume optimistic really whether bit we X again, good the but on months, that's X pretty see, that a be. months, place will we're to really front. good A little of

as Some the in common just some happened of earlier as right, this the of year. is losses contract mentioned, John losses that well

were down anniversary for quarter. to year-over-year the So in is Most of that the exit residential, third we X.X% example, as we going year.

that So we're of of the It's absence necessarily all it's robust long. experiencing year residential. sort expecting a that not we've just any been headwind growth in

comes Bank. your from Deutsche question today Faiza And with next Alwy

of? the taking in I back commodity any benefit. go coming get like reflects just it margin year down in points factor? to And wanted seems XQ that the just was prices Or of onetime that be potentially the is quarter fourth trend. to year-over-year it aware is is But versus back, basis there something prior in step comp I are the Or the change other there XQ margins? a to that XX

and perspective, QX step to last seen look were a flat, year Yes, equal I comp right? down other. from margin last as they They year, would prior year, each from QX at you've you to historically, look, say, were

a certainly finish February. you But we'll and prospects up sit this be good tell to the in as going how there our how and tougher we about finish we're earlier, year out Jon really there's comp. mentioned So year, able we and to feel

And for a housekeeping if question just you 'XX, Understood. can. then

that we any or coming First, for keeping if those or 'XX. in And so there's up have type of like I then confirm are rate be keep below-the-line below you things of tax of in the mind? should expense, interest level we just want mind any rollover that acquisitions should to anything that the notes some

points From we some increase that any in a back based flavor So perspective, Obviously, basis -- XX which as deals that the that, we we you get said would rollover Yes. closed February. of on earlier, that to closed. again, about right? we XX can quarter, is rollover fourth in of give for we when together already

take I the due mean, some current other than as next the components, are at of lower you rates. can a year, if what's look rates coming at of far As maturities they

rate So we overall debt, but rate significant. expect in fixed interest overly the some due would nothing just on expense increase to

next today Jefferies. comes Your from question Stephanie with Moore

remind I'm digital Tyler's question. putting of systems XXXX some maybe in is surcharges of you're the some could to and capabilities. year appreciate capabilities? a out RISE of quantifying up of follow the of us what's rolling the left phase know making kind the platform. is actually your think in I maybe to you benefit phase those -- of what cabs efforts in the sure tablets as the this of Just of the as about capturing overhang of terms out next some you I we lot next sorry, and batch But

order the now of adherence, are ultimately, then sequencing to mean make up designed. ratcheting running as really drivers that place in in routes the Yes. there the platform To you've sure routes from route a got do and you what that kind right? I optimize sit and those

a So out our annually. there again, million we worth system flavor about is this across that $X put minute before is

seconds can digital minutes meaningful, So of and it's to a think and yield. going lot add that something what platform take next that's we up rev our to the to of

more a of our modernizing replacing as operating and our work any there done done we We've last that done on and marketing with done And a broadly of We've or front. assets. big taking lot and with rapidly it the transactional I long some the order automate event of sales. of years, X done HR. still procurement. wave to our on with we've now risk, CapEx institutional we're good working job under and We've it of systems it said or without we've another over We've X it with it we creating just about all so be onetime side that benefits done our business, there'll think on can cash, and

the makes provides then those it service, 'XX. So story the It really and of able value to business hit in but necessarily 'XX be and operate a better It's opportunities great employee some will efficiently. we're won't proposition that customer be more We'll into stronger. 'XX. and those, going to get

side lot polymer makes maybe like. It to of just your a -- switching the the business, the And centers sense. it. not on of gears, Got recycling then or

So talk about investments retrofitting the you maybe like have planned? traditional be coming might you implemented feel XXXX kind or anything for or would of of any you might just you birth, your years? that do in think automation here Or

taking manual we Yes. We're year. product. in centers automation. we're every our orders better make out and The that produce putting and to investment work is doing optical more new recycling in a primary year, Every getting

do on you to jobs is and in put in order taking never capital end some taking labor, but up out goal. you Now new that, our

product marketplace, provide goal to more per that Our for a is higher and to can circularity create the -- the front. drives on price we which best the product drives

up years where that or most And so upgrading we're a of markets because we then M&A, investment couple up the is we so There'll our on existing XX do XX. going be go new -- the next the few capacity continued we studs of need centers. that there's pick some recycling over But front. to

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

evening the continued I commitment and growth expectations Nick. team our you, be to the entire thank want of and Republic and Have Thank a to customer Services good company. for safe. success their exceeding

conference gentlemen, for this attending. concludes call. Thank and you Ladies the

now disconnect. You may