Brady (BRC) 6 Sep 242024 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q4 2024 Brady Corporation Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today. Ann Thornton, CFO. Please go ahead.

you. Thank welcome Call. Corporation and Quarter XXXX the Conference Earnings to morning, Fiscal Brady Fourth Good for morning's slides www.bradycorp.com/investors. The this website on at our call are located

is uncertainties, which will and forward-looking rebroadcast by were morning Also, identifying fiscal this filed It's and information. #X. Please to Corporation Brady the such as of on and subject call, We release words may, could a factors may just was results. Words significantly not prepared SEC important believe, copyrighted Brady. of consent a will, Brady's that Risk noted this please during and examples forecast we may about statement. impact note that factors XXXX in forward-looking are risk to this Slide without comments make expect, news which the expected Form our begin that XX-K, anticipate forward-looking in be this our information note with various note remarks is morning few teleconference

recording We will the this on it be Internet. broadcasting and call

your the Executive being over Q&A to constitute consent the your turn Russell? now recorded. I'll Brady's in such, Shaller. Russell President and to participation Officer, session Chief will As call

and thank the our year. Thank thrilled We grew financial and you also joining Ann, operating sales We another record for we company quarter, activities. released generated flow announce to from and you, this morning, today. for EPS fiscal quarter both us quarter Fourth high I'm XXXX all results and record cash this high organic

finish great another year. to This an excellent quarter was

record three X.XX high highs. consecutive all-time ] of non-GAAP was XXXX another following [ Our record of years EPS all-time

proud through efforts margin to of year, buybacks. I'm high. regional the dividends results X.X%, sales driven returned year. by improved R&D. both Gravotech testament closed XX.X% Brady with grew improved profit profitability was team Our for shareholders to our creating also GAAP our ] our organic our increased XX.X%, our [ million $XXX incredibly we an and EPS from their of an we we on that the and We last share We increase this to gross of a while year. in investment August all-time entire acquisition by our It's X growth record segments. of This X.XX

our We growth. these our products we put of investments engineered position using force are to expanding consistent to and customers' to increase investing digital help our our portfolio easier. make in to ourselves organic sales are Meanwhile, capabilities sales the in generate best lives

growth capital funds our shareholder as returning long-term share our acquisitions, includes drive shareholders demonstrated to value, which deploy shareholders to And announced count. effectively dividend annual year $XXX back yesterday, we in And announced authorization. an increases. share million nearly diluted we consecutive of funds excess and the dividends we customers, repurchased growing our Our niche our in priorities remain evolution offerings product continue year for into and of developing same: a GDP next opportunities support line top faster to Generate the target unique by company; grow; automation, for profitability in opportunity particularly combined integrate and we years believe of to investments, an which X% dividend, our identify to buybacks. We we commitment of our the to to which area year to is as improvements operational and XXth acquisition increase the Gravotech through growth sales our this growth our opportunities; organic additional represents deliver come; workplace a increase share returning

Ann? shareholder our it a our more shareholders provide while now return We to strong to results. return. I'll over delivering details financial are cash committed to to on turn Ann

had a and Thank an Russell. XXXX. to excellent We strong quarter finish you,

organic growth X.X% Our sales was this quarter.

compared reduced share, of another in SG&A growth resulted to margin last GAAP per quarterly year. up of quarter R&D, as a the and gross XX.X%, percentage improved fourth and EPS increased record XX% in we $X.XX investment Our to This profit sales. of we our which earnings was

Our share regions after-tax non-GAAP last was $X.XX quarter, impact the amortization of quarter. this up our which EPS, expense, performed per which well was of is fourth EPS, this year. Both quarter calculated GAAP XX.X% excluding as over the

grew Our and sales by profit the increased region Americas X.X% X.X%. organic segment Asia and

and Our from shareholders. efficiency takeaways X.X% straight in operating Europe The in to the organic of and were income this even and But fourth the by our high and streak still gross commitment in impressive slight to growth. quarters. Europe the follows operating cost financial sales are flow to declined has activities, sales, decline record in ongoing within high driven cash return our funds months structure throughout improvement become X.X% environment region, in we record strong organic which organically of by continued able Australia macro both regions our which quarter a gains performance compared profit Europe. financial to continued of several a over continued was region challenging last increase margin year's EPS, key an XX quarter quarters last despite The more

dollar and Let's for move our by for a X.X% of of X.X% major trends. sales recent X.X% divestitures sales this quarter. sales decreased the to Organic other strengthening the currencies grew versus decline U.S. The sales decreased quarterly quarter. #X Slide total in by sales X.X%

gross quarterly Moving to you'll Slide -- #X, find gross profit trending. our margin

the with points XX.X% last in be profit to strong increase of of margin basis continues quarter Our XX.X% XX fourth compared year. gross to an to

profit year. of from #X trending. was fourth compared $XX.X expense benefits realize $XX.X to costs products input our SG&A as this sales well continue details million growth to last in stabilizing to quarter coming last SG&A the from We margin quarter as our year. Slide compared higher million gross

As of in identifying we've SG&A XXXX. if of years compared X in all each periods to the this continued then our sales quarter. of to XX% amortization made exclude XX.X% invest savings of sales year expanding our sales functions. declined capabilities our you while sales a significant cost enhancing would force progress to to support presented, broadening in and of optimizing XX.X% sales expense by We've last XX.X% And from sales, QX. XX.X% throughout from in decreased quarter growth time, expense then from SG&A the ago other our to of XX.X% and fiscal structure, percent reducing fourth year last omnichannel digital our same have the SG&A of our than sales more strategies, At

Moving #X, you'll our the to and research development. find Slide trending of investments in

fiscal almost This the quarter, development, know committed of lineup new finishing ROI research which organic investment amortization million, in set basis our #X, to on the and X.X% And of trending million. Slide sales. can increased Slide best investments the we #X exciting of and another again once increased from $XX.X both you We our pretax products earnings that see in in at to non-GAAP was earnings earnings We particular, and have are R&D investments, million remain from you details exclude that EPS. product to X.X% increased $XX.X launch XXXX. On million in X.X% on a always if investments development. periods, from and million. to $XX.X with $XX.X $XX.X we pretax a GAAP basis

was a see can you is And an quarter clear strongest earnings. basis, our quarter high. Here, EPS the On also a fourth record. non-GAAP see on our trend and all-time record that a GAAP both increasing you quarter fourth of can

last after-tax to EPS And compared exclude quarter EPS year. you amortization This non-GAAP last quarter's if XX% fourth compared XX.X% the increased year. to increased of periods, from impact GAAP our both

cash compared Turning our quarter in flow million $XX our $XX.X our generation. increased historical to to sheet. quarter. last at this income cash million of from last this cash be XXX% to Operating and was flow net had in of #XX strong balance XXX% flow free cash cash of quarter. summary has Slide cash details quarter. Slide impact #XX income $XX year's this was of million free QX generation the a Operating fourth year find million net flow you'll on to And $XX.X continues that

position a of XX, we million. of $XXX.X in As were July cash net

consistent which new to capability-enhancing Our approach capital first, development, cash our generating and product CapEx. sales ] automation-focused growth [ use investing efficiency organic includes This allocation to in CapEx to used fund opportunities. sales resources, is and is

profit which that year we're is And and consistently of. After our always manner XXth annual to year dividend funding we cash a in cycle so announced also of acquisitions putting a price. economic investments drive for when have our best in trading Brady's we're disconnect deploy dividends. very intrinsic and throughout ability then that proud value focus position on we our ourselves We streak to growth increasing the between disciplined we consecutive increases, have growth. the opportunistic buybacks we to organic Yesterday, future we where sales and and continue a the for second, then dividends, see invest share synergies clear

opportunities earnings in EPS finished the These than annual consistent and the of sales full translation sales return Slide priorities We continue to year will a confident to results investment financial Our which XX% by and decreased high other to our in investment our price in future, share takes X.X% record even foreign sales dividends which that funds strong strong after year. for our grew XX, organic X.X%, fiscal July on in We're for us this provides currency and shareholders company when able success right, acquire with through R&D EPS. buybacks. Slide #XX. by largest puts an overview investment balance set and results is our us guidance the this year and position history. R&D in next our the in sheet year, while to all-time non-GAAP this for shown us is our increase companies strategically year, R&D to the be increasing Organic of resulting to GAAP to XXXX increased divestitures X.X% XXXX. sales more impact ended were #XX up our in and actions

would are XXXX. to in fiscal to which to $X.XX $X.XX non-GAAP amortization, fiscal fiscal of And compared per compared X.X% of XXXX, to which and represent increase $X.XX We and in an per we're share represent the forecasting impact EPS, from EPS share between which range increase XX.X% an forecasting $X.XX would XXXX, range between XXXX. fiscal X% GAAP X.X% from to to of excludes

pressures closing in include in the others, potential turn the provide our over our ending sales economic income risks expense of of to We low and thoughts our XX%, the manner also results to or for include an year offset unable to guidance an U.S. Q&A. Russell? overall strengthening growth expenditures activity. I'll a Potential elements depreciation cover July $XX $XX million $XX before timely some XX, inflationary dollar, and the amortization XXXX. approximately enough and of in were to call of approximately among back capital single-digit million to that anticipate of guidance, percentages to Russell rate now regional million. Other slowdown organic tax

organic and sales financial Thanks, region. decreased was X.X% Asia in by Ann. quarter. results currency details Sales reduced foreign X.X%. total and sales XX were Divestitures growth and Slide quarter X.X% growth Americas translation resulting our million $XX.XX by of X.X%, the of sales this sales another this

in and Our approximately over and percentage performing business quarter. Asia Americas growth X% the our $XX.X are We increased remainder this expansion a a this driven with identification, revenue also Asia our and India safety throughout million, high identification XX% product and product exception quarter. of the operations is We're in from saw our seeing organically in on meaningful increased growth by profit the wire XX% well. Segment to of profit of recovery at driving year was Southeast XX.X% Brady. lines. We growth with At our sales numbers Meanwhile, identification best organic in China, to as the of in segment July. which X.X% some growth, XX.X%. quarter of just organic Asia finished this note Asia facility declined

generated a We are delighted with work product combined industry-leading launches. were hard with of which by lot several these results,

Europe foreign region. of we'll the X.X% XX, quarter. Organic Slide currency decreased total and to sales of $XXX.X our the Turning declined X%. and million sales translation performance Sales were for move a X.X% to this Australia of decline impact

we which ]. we This still in streak grew And sales $XX.X to Despite improved to organic decline the million. decline segment Europe and quarter XX.X% quarters Europe X.X% profit impressive [ XX profit organic sales by sales the in from first and in ended marked region, Australia, XX.X% of sales. in of in Australia segment in our

manufacturing regional our year We effective following offset and pressures through price halfway through to we've efficiencies able increased that been last increases. continue to targeted efficiencies became identify opportunities for and reorganization

in to expansion that region, continue macroeconomic proud performance. and partners. the in long-term Given invest the sales of geographic distributor prospects do picture I'm are multiyear in weak great, through team's We region new incredibly resources believe the and we'll

in will ensure a customer positive niche solutions approach Europe Our creative problems trajectory we a to and Australia. with remain solve on our unique

Looking that experience. several forward improve ahead our look have to our fiscal a will lot initiatives XXXX, including customers' to we new to,

For instance, where sense about print a to specific to waste technology. sense able the or with unique experience our printer label printer and printer enables the now enabled This without cartridges print is need our customers seamless the are for material worry configurations.

in label. on Second, business add allows the for need gap scribing a we print to laser voice without our acquisition background marking ability of print Bluetooth-enabled of phone single to of forward in Gravotech, our lives their in would Operator, technology expanding portfolio Gravotech, technician [ reach of half talk also customer make dotting customers which of $XX in turn These products closed identification. our help it that Lyon, solutions please to ability now These manually Gravotech. With with $XXX fill Latin directly sales printer presence our Gravotech's to to industrial without the printers. provide we're a and enhancements more improvements our data. has enter use portfolio simply customers' Gravotech the on instructions enabled complete to looking product providing and forecasting we're the mark product out to listeners. we a from U.S., fully headquartered the fiscal gap and the and approximately technologies a identification have examples Europe is This Q&A. In related easier. I'd like solutions. label high-quality Brady's with you handheld precision like integration-related part our was With Gravotech, to resource of and Asia. France Brady's our XXXX, to identification. are a August and have great direct costs. recently approximately an X. for our key solutions A along I'd marking direct, we provide mark Over ] parts EBITDA within round part million America, the offerings is marking excluding and to for to reader, to and addition a million, an of labeling over to for international the that,

question from Cashen of with [Operator America. Bank Instructions] Our first Keeler comes

there with with how be organic also about off, Is And a we reasonably mindful well? you the that, earnings guess, as of maybe of vary us demand maybe it year organic little how the can So bit half and year? should pricing will second can then first underlying throughout will half? I then that bit anything cadence maybe the there? how be we And throughout consistent Or growth, be help coming with will a maybe little also that, much first from overall? the think versus parse can you growth on growth

lot a There's questions of there.

is the give anyone caveat my not So crystal first, than necessarily ball out I else there. of better

my of kind give I'll So personal take.

in are an industrial with that and bit, a we economic as countries serve. we serve. and dependent way possible the a relatively I United fair investments area range Brady traditionally capacity elections to Not depending that the we back the with we're investments means which a we we be production an if sidelines, outcomes, go policy on we a on customers of becomes, so the thread to in slow living kind tends surprisingly, middle investment amount trying the U.S. very on percentage is come growth and manufacturing take there what too to States step of of which in see in underlying well, spending tend that Europe. And a countries sitting doing industrial along to be GDP think were of energy and health overall overall of

at, more roller looking year we've we're is bit the of a same little what year. think, seen over I the the in month-to-month past what say, would coming it's of I So coaster. of been,

don't in maintenance deciding see certainly capital think to deferring see time, expenditures. and don't I -- were the But investments. our very capital distributors of tentative that There's too how we to and or many we they're some at are deferring all in make necessary capital customers deploy. the willing same significant still much anybody some really customers of

outcome I both elections, see waiting the think of and again, some America. of they're, to Europe the in

the I GDP rate I'm pretty launching growth look and taking. as even relatively that some the So about to low with I of that we're think the future, a we're products excited initiatives

Our Industrial to growth mid- Products the We're group, been [ Americas has pretty good looking think, I some single-digit high numbers. clocking in, rates which macro is overall a in subset and at environment. relatively of stagnant Europe a ]

a continue of part and are cases. we We've lot the them to and been that new of wallet So customers. sell upgrade on where our is share better it them provide expanding and growth, getting to use able

make our we of getting is essentially, use most lot to think out and I have, from there that customers So products, growth to a industrial of companies the which continues Brady come a them the way more to more I and think lives simply their and lot done, of easier effective cases, solution get growth. the job a seeing is we're to in efficient Brady because

optimism I get our What growth think which can have, see of little in the headwind a Europe. and in the extent expansion production. where the for for And on our the their capabilities is modest energy some as it They're overall would capacity does go. it make independent of part their better. of organic is a energy energy a countries of best a of is control, I energy coming big more we guidance Europe. to some in get that traditionally And energy we in year. customers industrial they very So utilization other picture particularly rate lower industrial I better significant think, under the We sales think, that the see lower prices, France, is, or prices than region. very in is clocking the level part what so

then what integrate be I you of said done excluding that? to just at And to And needs integration costs. juncture, that on this Gravotech, I EBITDA the $XX think was guess, then million

figure there we of that is associated So with think costs terms a of in about integrating kind can business?

Yes.

all, Gravotech first up. looking reason that part that's significant anything successful vice operations or is are not We're that hasn't Gravotech the and consolidating of buying [ Brady we opportunities not lot And it. that ] a So requires at fix versa. very We're like a something pursues of company. There major. of traditionally

things what customers and purchase we customers get can of a So new Gravotech for seeing minor the what back-office in any is I pull course, always you there's company, some really whenever Gravotech some consolidation of what they're terms system new looking to relatively we're operations into I sure that in help can scheme major definitely use we're making anticipate that cases. Yes, of you. operations. the to need what have same because consolidating us happen and the of and In small. things, ERP of Like they're don't said, on

Brady We images, has with that Brady is developed. I already with same the and think of can terms we things tweak in I the accelerate that. core At software same can about and there. And Gravotech. of Gravotech's that printers we capabilities the their they a some R&D do their is tweak we're R&D some think little time, think we can bring creation do of to it's the what some excited little is already. that doing here a in And of thing

the you combined put case a really But I months the any to that, XX is business pieces together. strong we as months see bit think for slow after all little XX the entity. like first a get acquisition, So

last then can. And if one, I

opportunities year? inorganically know areas there specific portfolio to on capital just any front have you're an also then perspective? in that, next did deployment of you maybe of look you as terms you'd Is buybacks. the on what do Gravotech, well? looking organic number maybe to I in grow And you Just from a target in And but

sure. Yes,

double-edged means that is them is a buybacks perceives share because In don't the almost we undervalued. our sword. stock market some the So that regards, want price

the we've in we that authorized we have when buybacks. past, target? $XXX share money. a Yes, in disciplined we've But do very as million been use will in So

share margin the or So much overall our organically. if range, discount price because, money fairly either reinvesting my down trading preference significantly there certain company of all to secondly, valued flow, again, we'll we if our R&D opportunities stock it's preference start our goes love That we a again, devalued, to investment. not some keep are my considered there. is shares out we'll cash is hands unless but buying a of the gross then and improvement. And growth the in M&A our is driving And our

secondly, We use a differentiation. identification. ability continue interested certainly that be always look space to our part our drive at do material unique the It we capability to because we're marking, neither of to it. further product will our materials in And things i part lot then

if objectives, two are So a in certainly at financial feel things see future. there if those become we they categories, that the meets available our in price they're in then areas we available and acquisitions could

Keith from Research. comes question next our Housum with And Northcoast

[ bite at representative Russell, terms track know adoption year, you market but your been? early How working about like sales -- all, initiatives out progress I of the and guys trace or scanner. of drive and doesn't trace track are product talk guys efforts. Perhaps early some earlier probably the And you by ] that I the guess you for that I initiative? data one came the can the that a do that perhaps as the you VXXXX of know on. this of in scanners think acceptance

Yes.

So very building for product. the too. adoption of portfolio, about it's complete us, a out which will now we include the good lasers feel And

of door along to it product to able customer. incorporated before another into floor, manufacturing step it out through be uniquely do, need part, identify the a a way So back what to to gets it the needs either at and read a you and able you to you think the steps our various or -- manufacturing sent it goal be take if trace gets

core the every products But of to really distribution you our at that in that in not see -- the So we're business. not journey, step our of things. what throughout doing. we floor side and want manufacturing there That's and be industrial

I are another, think entire kind our the relatively like designed Windows experience work anemic Office automation super usage. seamlessly we're I'm is pleased So to environment industrial industrial our of portfolio. Again, what how we're now, immediate doing with one going in a right in with for out-of-the-box products

there So of out a up. integration to amount handholding, get and lot a of fair products require set software difficulty

products plug minutes about is excited I super think about verify Our to can all I'm be to it right of journey. do reader goal particular the have ease you And the use do pretty and much barcode play for able customers, of product. without the to then the and printers. we that. there voice-enabled for be tail the able whole our far along barcode a our at to being my and skill. voice-enabled in and think of if tag talked to to in be end we're used I And able commentary, about that

use. the out coming of are the lot there in will to rich a customer and in our together out as on come am I we've millions that's more working start products we of for to that our over there's provides XXXX we've this kind these been way excited has to probably started and that's products as hundreds the So be and business. easy year spent this our them things to get customers. out of But we so something a of literally and that content point, round thesis And There portfolio. super come of seeing to to XXXX, working been dollars

do With big And there ] [ business. for just of will printers you expanding currently cycle accelerated as the that the refresh be lease addressable of there, as you market? well obviously are a kind printers and your anticipate cartridges ones -- part are mentioned especially that out

Yes.

things. two So

virtually, sense printers and technology, core So been all refreshed have with now certainly, our of products. Label all of our worked

get any the label, save in don't if minutes it how first waste like you because looks, the you can they industry, technology, does if it amount board a it a you a label kinds, try to to can print a not the And label ever work material but don't effort the it's it all unique you tens a working. configure have management and or with printed literally go cartridge or of in looks, of this, sense marker talking printer the this, about again, printer all on setup what save needs to on unique getting that it of it importantly, label, that. With have I'm to that And it something have materials, printing minutes tells there's the way, the and material I'm don't do? that up in first customers. what match have more new are in it and what shot, you've about some of try and on make so you of get on our a how for printer old decent combinations. again, work I'm a This talking of the the you one optimally And cartridges this R&D to for goes would circuit across and to it seen you there's to basically settings material print of you, rolling that team paper and on their customer So and wire like set print that's to that material. part done a the chip it's that you our product different to enabled print the it If again. hundreds lot

price terms increase, generation? rule compared I Is guess, of of the the to thumb prior this there with in like just a technology

think, on price pushing proposition really the not I We're Yes. think The value to this. is fantastic. our are customers I fantastic, products, and

them excited to to more more it. for easier We're we're them. make get to of So be use trying not out and customers to extract trying it

but we we I've As win-win, we're use drop a try easier and enable get when in people, I Brady to environment. is customers their really, our with extract to getting or to economic fair successful a joked jobs some the penny, every don't pen most it's labeling. last think And nonprofessional

to we're push consumption not push trying trying So, price, more more printers to hands. again, we're in and people's cartridges getting really and

mind. from more most fourth fourth you don't in anything I for into question the 'XX? the unique quarter suggest there SG&A, efficient FY One repeat that quarter the Was best [ guys. me, and this cadence was shouldn't the ]

forth. and are some know, any make There things on little you that? want Ann, if back to don't commentary I

year. in Really nothing Yes. this unusual, Sure. Keith, quarter this

can a be work through initiatives a bit and as efficiency going to trajectory, this opportunities. we But of through long at general over the As bit, SG&A up downward internally, it down a we sometimes we term terms approximately work level little expect bit. working be in choppy

of dynamics as And little that well change course, the bit? excludes Gravotech a will because

That's point. a Exactly. great

next Steve Our Sidoti. comes Ferazani with question from

wanted right years over Can ask now? three can if gained two about opportunity your the little sense bit I are you give as practically to a go the and for how you've what know I years, you or be next Asia Southeast those and progress see India. in to a X traction much you. we greenfield opportunities X back of us it

overall in out And Southeast for India as very ago, off leadership us from in off started China Yes. benefiting and some relocation as are XX the think as a as the economic the corporation. started both I small due frankly, of years growth just -- of going particular well country. of to team, a India opportunity they I'm back all Asia, India

it in look added last us plant second few the years, we've a India, the be relatively So over to but customer. close small, helps if I

XX% out they've digits been seeing really to China. and called we investments, double invest I But we plant for journey have in this year-over-year results third plants opening years, we We're one growth. growth well. that we'll of low showing be up on those rate. And Bangalore two continue entirely now, one top on said, Delhi. a we of there It's trajectory many our growth is a So as continue if the approximately possible in like in

Southeast again, is that some China. you see benefit of we so see other some production in I all very we experiencing, guess countries of out And some even that -- just positive. through it of happening are small, relocations And feel Asia. And the can relatively I they're

an incredibly think number. Vietnam, they growth think XXX% really had times wish a I I like it us. rate which I a it small country but bigger, for small is was was

the additional deploying this always set products that sure what whether with of slowly those it's Brady's economies, model resources throughout has are making salespeople, resources are opportunities at support. we're we business of region. or sales and the growing and So been R&D, looking right And customer sales targeting additional what countries, what

buy or or India in products you U.K.? customize what buying they're different by the be Do have than to U.S. in might markets Vietnam might the what they the

So I'll absolutely, country but it's end customization. kind it, call or users of, end

versus product will upwards products would a products. Brady XX,XXX another sell of of in less isn't much support I you say one as X,XXX maybe they then that and overweight we and that huge countries are portfolio country, unique So What is has it's see for that another. of that really the common. the different

But terms dark Capes weighted and cost. in than energy, we as than So blackout will countries. in signage worldwide, it's be see surprisingly, their way lower high-cost just the weight a concerns tend country other buy our for due what in automation buy solutions [ instance, ] much to more more have in others. Not to you you more glow in some to in they might find than would sell India, they you'll them geographies of heavily

countries unavailable our labor those So is, and wire it towards or expensive. what if it comparatively tend where is have targeted is you look at you, be wrappers either to if

available to use countries doing. they're our whole country is what unique choose own ones to depending needs but on different different every and their portfolio So

those to really the XQ, Europe obviously, because in could strong. surprise flip over were we was particularly If big Europe,

indicated you good time at think really I the you one had month.

This there Can quarter, the looked us like new what XQ into how your year? it given your the a maybe little give sense predicted, XQ? strategy European probably bit economies. more more now the difference could we versus outlook was and affects that and you have

when Yes. results. have this And quarter-to-quarter always is problem the you

the You out next, shifting of falls quarter day can a one bit have little and a in it a to of or quarter.

the third expected. than was expected, we I as bit fourth year a economy. little the European result our higher of quarter we a quarter was overall think I result and bit whole, and to was lower together If indicative was a that both take little than our I think

some with said, Now we're in differences countries. that significant seeing pretty

As well, other I some probably doing some having few not issues, one problems, the doing countries that. some U.K. And of we're say well. Germany, would incredibly that energy is and as us mentioned, guess France same for I which companies that on are the side,

on capability policies you a together. -- their doing they're get really it it's the all depending you unfortunately, of blended what is individual overall for So get it And their differences amongst in and countries lot set. Europe,

They've continued as doing see this said, don't the nothing is quarters rate, They've of anemic growth been they've XX this very of performance. they would on And the I in about them cases opportunities do. long that we there we But consider, some to They I remain had a the optimistic I talking I'm to So the there's quarters that And streak. I'm need in know one believe call, pretty back Europe. GDP the for tenured. business growth. that that successive the Like had been of about. they've very through, in and a path coming excited what time. sorry management team broke said

[ or sales, for expect Guiding more, million, is to so XXX% ]? back looks to it back conversion CapEx under towards down reasonable again, X% $XX like cash of Ann

Yes.

rental of given one. substantial in an the for were a outlays. But cash So ever outside which to last some property needs, owned our thing did it's year, happens lumpy property. with that Occasionally, And pretty that very general, relatively one we much us acquisitions, flip we modest only

make then we a the goes line cash. to and in So bottom that dollar

asked it know another so try I So have me let others this, way.

You're going if year to start this cash plays quickly building again out. very guidance

buying M&A you plays through again opportunistic. up $XX, higher year, and at comfortable position much the what here you're building the you know said I out? cash back stock it are -- very were the you're don't You if that's how

of Well, a PDE in there's not business. pocket. just that's at us has going I of I'm [ somewhere. part the don't to our XX buy to cash want burn our hole ], -- not a something go to

would in slight either be position. in a to I zero a obviously, debt prefer So or

money the On away I'm to flip throw side, not either. going

few in we've builds should I'm perfectly property very our possibility comfortable or doing our pretty how out of So there's doing to cash. cash possibly up we the and position make it the corporation time, cash arise. the think generation more If in transformative even it as position and we we available, deploy substantial acquisition if acquisitions. And there get a become been a At disciplined our don't us and should same something be an a both a would I gives I delighted that. in opportunity, significant see that's

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no I'm further Russell remarks. now for I time. closing President CEO, and it back questions turn showing would at this like to to Shaller,

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Thank This concludes today's you participating. call. conference for

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