ABM Industries (ABM) 8 Mar 232023 Q1 Earnings call transcript

Greetings and welcome to the ABM Industries First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Paul Goldberg, Senior Vice President, Investor Relations for ABM Industries. you. Thank

begin. may You

me and our name ABM's I'm is of Financial Officer; ABM. Vice everyone, President Salmirs, earnings Chief Officer. Vice and the quarter President call. President Executive With at Relations My Paul Earl Investor are welcome morning, Scott first our Ellis, to and XXXX Senior today Executive Good Goldberg, Chief and and

of release the that abm.com. this prepared and on results. morning, announcing press our a host earlier our financial found first we session. note remarks, slide Please A After accompanying issued copy release an be Earl's presentation XXXX quarter we will Q&A Scott can and website our

predictions, begin, But statements. you like forward-looking our estimates I remind contain to and would before other call we that today and presentation

the and judgment our represent are use similar and these holds. words current identify Our expect future expressions statements, the estimate, to intended they of what of

reasonable, uncertainties actual subject to our inherently these presentation, that them are believe accompanies differ to as in results could we that are the materially. These slide as the filings be SEC. While with described statements our factors and cause well risks to our

will of tab. non-GAAP at course under the our the financial A be is information call, historical Investor certain reconciliation of of During on numbers, presented. measures the non-GAAP and financial presentation GAAP this available website the end Company's

now over call the turn to to like would I that, with And Scott.

joining discuss morning us Thanks, first to you results. for today Paul. Good and all thank quarter our

as work the a million from we first much team, EBITDA amid a the Organic effectively versus ABM disinfection-related orders disinfection-related X% revenue wage environment. shortages quarter, orders. unchanged strong ABM we period. of Adjusted $XX results higher the year as essentially from labor challenging posted lower prior costs, last and reflecting mitigated experienced solid in work in was impact even year execution reduction the operating by grew

well which our time margin reflecting above we adjusted can In over $X of billion an efficiency initiatives. with that X.X%, all, ABM of through improved generated operational ELEVATE first remained EBITDA believe pre-pandemic enhanced quarter revenue be levels,

pleased I'm quarter achieve with first the our that certainly remain in track So, we our to full-year outlook. on performance and

uncertainty economic given persistent our our of essential services. resilient business the nature remains continued Despite pressures, and inflationary

clients. increasingly creating on maintaining to our and given environments never been clients attracting talent and positioned customers them, strength healthy the and support our we to Our more are We continue capabilities, retaining inviting appreciated focused remain industry-leading has that fact or are and and by that energy-efficient. to financial innovate, uniquely important

of occupancy of with the industry environment around each I'll a levels first at on XXXX varies hybrid continue stable basis, Beginning though now discuss and B&I, groups. and week. the our employers quarter for to at XX% We work. demand office rates these don't changes as by the significant region remote remained expect blended trends by region in in accommodate to relatively occupancy day

up. So office marginally will likely occupancy tick

performer Our expectation through the will accustomed to. be B&I is we steady XXXX are that

pre-pandemic in Aviation, and including levels. and largely last parking has consumer to rapid to travel, business a transportation recovery returned following Moving travel year,

be result, experienced we our accelerated more fiscal that XXXX in a overall As in normalized revenue we XXXX. growth the level compared will reflective anticipate rate to growth as Aviation market of

TSA That Vantage in background worker inflation while clients, parking generate process is cost the labor and the our being lengthy continued do spoken ongoing we've We improving remain this in in challenges part expect growth ABM all exacerbated higher to for check that availability our experience. revenue about. solution, proving by said, segment, which traveler

project pleased discussed we on received announce after approval I'm quarter. we to that formal quarter parking end, last the

recognized earnings. but the in The order QX. work revenue final to will recognize completed approval client we we remember had the associated much be in were you'll of in and As XXXX, project awaiting revenue

markets in Moving job by on on of strong, the Distribution Manufacturing organic driving an served clients. doing team bringing growth to expanding outstanding continues and our demand and and is new be

semiconductor As months. an of is example, renewed ABM and This has the semiconductors. U.S. Act. in and to manufacturing the the Science $XXX legislation new growth, provides area enactment manufacturing domestic XX This past the over market $XX nearly won experiencing recent million driven billion business by of CHIPS research approximately of fund

our We remain expect of to the revenue segment year. growth the remainder M&D solid for in

XXXX of mid-single-digit segment. The revenue solid to growth organic new in Education. the fourth clients addition Turning in of helped sizable quarter this drive

our positioning. confident strong a I'm share have new fiscal competitive will given of win fair our pipeline opportunities ABM business year, and We in the

continues While positions labor quarter open our more and non-unionized reduced for hiring XXXX, area in in quickly this we beneficial over term. on incrementally segment, inflation the focus in this prove in challenge filling should than by markets cost the to a be near time

the declined first charging primarily a to we the and be will continue Technical Demand in of in as shift reflecting up timing from quarter, installations see program revenue won the strong and we infrastructure. in the to opportunity on expect electric pace quarters In the need begin to EVs EV-related remains consequent the pick our to programs. delays. second deliver half multi-year future. recently of providing EV we ample for year EV to the ABM growth, supply benefits Solutions, strong vehicles the for chain of charger This several expand and trend, After demand

of by the outlook million pipeline quarter experience significantly to continues grow, for in typically period. $XXX has microgrid the supporting back first seasonally to slower is and the chain growth, a sales backlog though customer full-year Total impacted year. strong constraints half escalating ATS our revenue for continues strong were grown nearly in RavenVolt what to lingering supply demand installations solutions some its

change our mobile to clarity year we're app a notifications. a attendance greater From We we've will of strategic continued This a access make app new should XXXX. notably, on Most offer with team for facilitate smoother progress our schedules time on perspective, by rollout to tests plan developing a for this app frontline ELEVATE members. and shift this quick experience, begin and on piloting the middle work pride initiatives.

productivity that of will standpoint, work to lower-performing enhance of management our technology accounts. get for testing as will also and part are time its more rollout of an visibility system embedded the efficiency midyear IT financial roadmap. beginning hard deal ABM over an across levels the our and to deployment. tool a We're ERP cloud-based exciting of as begins This also to provide enable segment-by-segment time analytics labor innovation initial portfolio management into for We're at of scale ELEVATE enhances insights the actionable stages efficient advanced These begin we From organization. buildings. labor great our workforce a final across in also

in prestigious some our Lastly, Most Responsible Companies. Sustainability a Award. the And been ESG has won making ABM. recognized couple team Service progress of for were journey, accolades nice also by Newsweek of recently which we on resulted SEAL We our as America's great one Business

We an employee-led initiative Groups, aligned is voluntary groups, inclusive with also aim foster formally launched diverse business ABM's called a workplace which mission, whose ABM to strategy. Impact and are values

challenging ability truly over the hallmark and comments. be continue a few innovate, deliver Before to who summary results scale company. ABM to adapt, I of of entire a and resilience our to conditions results, want our make Earl, to market team, I despite proud solid couldn't is deliver I turn ABM's in conditions. it dynamic

clients extraordinary shareholders. our team and for value that confident will with continue I'm provide forward, to move service we build As our our

growth and organically business invest base clients revenue which of and and will our engineering to services. recurring addressable we RavenVolt. rates continue in serve a more in supported XX,XXX acquisition demonstrated by businesses margins, the our Our EV Where business large is were substantial certainly ramp-up with and of and janitorial, adjacent with charging high the of and we parking markets than

this see evolving into we the provider execute we growth, of businesses. solutions higher our ABM strategy, resilient facility higher strength margin underpinned core As by a

to over I Now, the financials. will Earl for it turn

good you, morning Scott, and Thank everyone.

of along you X. our with earnings following presentation to those Slide please turn For

X% from Momentum a First X% RavenVolt. increased revenue to acquisitions quarter organic billion, the $X revenue of and growth contribution of and X% reflecting

As acquisition we second a will the quarter. in of Momentum anniversary reminder, the

$X.XX and the quarter reflected on sale gain $X.XX benefit volume prior virus income a diluted The X, from decrease was net million Slide and insurance partially year. recorded in to higher-margin adjustment, $XX.X The down higher net diluted of year assets absence last on share, costs. labor in million per of lower GAAP the Moving the per from income a expense the $XX of first or absence prior of protection interest period. in services and share year

controls. and to million period. EPS and share XX% higher adjusted interest per a adjusted were decrease offset $XX.X an wage decreases income prior net partially year tight from XX% adjusted earnings to by cost income expense net the in decreased of inflation, was due The primarily Adjusted $X.XX,

X.X% flat was million disinfection versus performance $XXX.X higher by which well the EBITDA year. were and services adjusted labor higher-margin of as EBITDA Adjusted in and year was last essentially prior offset management. increases effective reflects cost costs, largely with This as margin period price partially the decline X.X%

by Now on increased Slide from to revenue X, X% over results, turning B&I primarily contribution billion, to segment a our beginning $X driven acquisitions.

revenue disinfection-related mainly declined organic a X%, acquisitions, versus of prior orders Excluding work year. reflecting volume lower

X% a leisure revenue was of year. mix. growth. the airline prior business margin was This Aviation traffic $XX.X declines parking profit $XXX.X operating change well related and million, and by seventh XX Operating largely business due X.X%, robust revenue improvement as million basis marking decreased increased in margin increases B&I to driven X% to increased activities. to the in in points were profit from quarter Operating year-over-year as consecutive and down

QX now in was have versus will recognize $X.X margin prior in client As labor million of Operating earlier, revenue X.X% impact operating reflect price challenges, costs last parking and Scott we period Aviation's partially availability we offset X.X% profit and for million received as $X.X and to was project the margin mentioned official the by the profit year. the compared escalations. higher labor acceptance. year

Life the declined grew Slide disinfection-related to to increased margin lower basis Margin reflecting points, X% end $XXX.X and markets semiconductor of Operating higher orders. demand manufacturing. market X%, revenue while distribution XX.X%. to operating profit and and solid as million clients addition XX manufacturing $XX.X volume, levels new impacted of was such by in on X, Sciences million Turning work

to Education clients post XXXX. quarter XXXX. education growth in to The of revenue fourth addition new expect in the increased we continue and in business of new million, education year-over-year favorable positive remains the X%, $XXX.X from pipeline benefiting

operating the to basis higher was offset increases. including Education lower to X.X%. were down overtime decreased margin $XX.X as revenue declines by clean prior attributable profit partially enhanced These price from while year as X% period, well expenses, XX points million, wages

last declined million program installation year's charger sale bundled to and due Solutions grew as revenue energy Technical X% some driven projects revenue contracts. RavenVolt push recent large customer the the to by acquisition. of EV of of our as mainly X% $XXX Organic solutions timing well out

Backlog and was expecting in was half million a $XXX strong operating assuming the are $X.X we nearly supply back margin of X.X%. supportive. million chains ATS are and profit is year, ATS

profit of acquisition. a This service in decreases compares of year, $X.X driven million mix margin customer to $X.X of amortization the in profit largely of and for The operating intangibles on million by gain and the adjusting were related changes to X.X% margin RavenVolt contracts. sale after and last the

of Slide pro X.X we quarter and ended debt ratio available forma X, a million to total of of of end credit, to equivalents in with standby million on cash liquidity $XX.X had of of Moving billion including At debt EBITDA resulting cash million. $XXX.X first QX, $X.X the in the letters adjusted $XX.X including times. we total

quarter, Free our and CARES installment negative softer tax generally of due flow our seasonable Act payments first million, compensation is $XX $XX.X perspective, to the was included a final from million and cash repayment. in which

$XX as increase QX. year-over-year higher about first nearly in up as million period in debt. sequentially well Interest rates year The and $XX.X increase due expense million interest to the total the from million was was prior quarter, over $X significantly a

on Slide let's move XXXX fiscal to shown full Now XX. outlook, on our year as

are largely the Our in the expectations for unchanged full year aggregate.

$X.XX range EPS to We in to $X.XX, with $X.XX. continue the to EPS to range adjusted be GAAP $X.XX be of to in of the expect

$XX between range. the of XXXX million trending higher Interest $XX end and million expense in towards the is and be expected to is

Our and is XX%. tax items rate between before anticipated to discrete be XX%

rate with discussed we mid-single-digit last EBITDA a adjusted quarter, expect As to and margin between adjusted X.X% we grow an X.X%. EBITDA at

in of Full $XXX QX. installment share Act of quarter to to to be about be earnings and $XX XX% million, $XX which of free earnings, And as flow to million full the communicated approximately XX% integration made to million range cadence the the $XX $XXX to year of final million. we we first the expect repayment with adjusted last is year. expected generated year XXXX per million of half of respect the in before costs CARES of combined between ELEVATE our cash And was

With to back that, let comments. closing me Scott turn it for

Earl. Thanks,

excited about the a operations to services, solid toward scope of our the our we'll deliver matches goals. scale future of sheet. progress I'm very in I'm industry our our ABM. strength XXXX XXXX our make Nobody balance the confident continue and or of of the

With questions. that, let's some take

[Operator of question. with Blair. your Tim the Instructions] line Our Please question from with proceed first comes William Mulrooney

and Hi. This discussions up? trending on for taking the last quarters to I I think has is labor. was a in platform turnover hoping also had if might bring that comment making that difficulties you around lot over the Thanks been investments you're Sam finding the on Tim. start, could here. our how of any labor for labor few and meaningfully I of availability questions guess we

Thanks, bit right? a stabilization we've It's still talent I us, to turnover. [Sam]. Look, think (sic) tough. a doubling market But is of really Sure. for great, not we're starting Tim down on little acquisition. on been still see The

been team, it we're and with We about getting a new tools some analytics. a doing we're have tool with leader a retention for also traction. good what building we year, us And call have, we're member supplementing and team we that really that's that's

out. the how And have all is, acute onboard, now this and data where turnover worked it. ABM about it's looking it's We out the and scientists figuring we've we're where that talked attack fact data -- and before more to just at has

segment nature it I a nonunion attacked where flow, mean, see like to more starting in because we jobs more with higher just of of turnover it, Education, had we're the starting because tools. much people we've even applicant

chargers. large you're anything will solutions, you that color I help why the speak business. that installers labor? appreciate you're these other we I that and to to my pivoting the guess, largest eMobility of one with microgrid same solutions would initially Maybe to sense able Is that maybe point explain same surprised provide same contact as up. it are Just folks scale? of Okay. surprise you the services understand a help of better is, And EV there. leveraging your such Many can install or come that the our to in you're be as of more working helpful. the at us show

focus, going thought a for we've little that, start earlier a had now. than to over was pun kicking to QX we feel major slowdown it's with charges on and organization, another starting scale it's automaker. in because lot And years able it. about two in We And really, a our top EV installation Sure, little good X,XXX right? was or it. we about are a Tim had with that signs and installation something intended, of saw (sic) on a of three rolling bit we've we [Sam], a we it energy dealership just really This it, the off. is we we off, large around been three and massive a a No there's and built been of team around

in So a that's why it. pipeline you strong we a feel but QX bit really super dip, little see the great and is about of

Excellent. Appreciate the color.

Great.

you. Thank

Markets. next question. the your from Sean question Please Eastman comes line with Capital KeyBanc proceed with Our of

early that's taking for from my questions. the year. -- wanted start the ATS It in thanks the team, of nature to to improvement in supply of like Earl's can And the I the that track the understand of the noise in half. so of in wanted Hi some quarter. sounded light second them. the kind in we're nice is comments -- first just year we chain-related start on to since some that, where supply the just I delays chain assuming I

Sure.

have I'd I So probably in we this a million think start backlog last saying which time off to like million. ATS $XXX comparing $XXX year, by was

been the a for of And it's is story, us, half Sean. the strong. super backlog always So back

and been a it's half If at years look you story. go ATS, and you back always can back

a will So the supply is chain delays, been loosening where about you little sitting up what's bit, we a right? we're the happening has I feel supply really chain, Because tell The now. good order been although Like to they've an wait. XX-week give So you right? stabilized, could example. standpoint, you'd timing not I gotten a just much mean, a better they've have from I pre-COVID chiller,

it's because producing. lockdown their Now it's now. EV we're it's China. whether they And XX a the when weeks, stuff, of But had right? XX And stabilizing a alternate for switchgear weeks. of lot policy, suppliers coming was they at right doing weren't looked chargers, We've chillers, preordering lot from

country teams our over flying had the we up suppliers. all locking So alternative

the up when just we in backlog, why We because that's feel the half are back but so And million in know think haven't you, we're remind wrench $XXX you I'll and yet. this, now. in year catching signed say So the we the process I of confident turned of those contracts.

it's So pipeline, contracts. it's sales not actual

that's confident half. the back we about feel So why so

on right. control, for if on moving has and in little All resilient. are facilities? new costs over keep That's helpful. that a where these taking you super then Maybe Scott. more happening could kind ability to just ABM's of comment M&D interesting and discussion. what's to Are the that And existing growth that staff facilities? under to Thanks strong I be And there. color would growth share been also, up meet some you an mean,

a that it mean, to stood this call. good this Yes. so because and pleased just kind recently look, remember, is pivoted up you we new a group of we was I segment we're if that industry

still mistake, a not little the down from a right? companies we about they space now. right? amazing a We still think see semiconductors, bit about that's you bit. so is multimillion -- headroom. contract know the about, could prepared the large in next growth in focused just But opportunities. see But that e-commerce to years. big outsized We're we much got that little continue few the semiconductor pharmaceutical talked really we contract just robust, the no and a make pretty quadruple slowing remarks it's E-commerce So over dollar It's on

standpoint, focused So we're a on from because the it's super -- around and think areas directional point. right manufacturing all on distribution we

backing not estimates. off on we're growth So

industry few next this a going the to be solid Over years, is growth.

was to these support in And bring Scott, the Street team's as recover. the on started the maybe this to revenue ability just concern to rates, growth for labor a

a just there that in level of growth of labor the segment kind organic execution comment maybe with availability the So, seeing, side? this on environment, labor on

so But always challenge. foolish, Anyone facilities, there's labor Yes, challenge, It's who right? a not, be we're you to existing say remember, right? would it also have it's already when a though, there. always winning would

of So from the when have things that's like a from is client's interesting a then And this right? perspective over it's site, you're network, we guess, makes, I so, staff, branch right? ABM zero, full starting right? that not one So there's big So take a we helpful.

offices already probably city where have number we service in the we're one every provider. So,

have access labor. we So to

of built We recruiters. networks HR have out fully

we across business, were of they So these the - network have is starting that that one were have have they're to country branch up area if competitors that an our has. don't likely advantage one from where wouldn't sites a zero. ABM infrastructure They most in pick we the if of huge because

the XXX% the you network have facilities you're is that We client them in the an a map been show what's there we And to branch is across all chance ABM offices deal that's just that our a almost country going because think also compelling country, up ABM light I pitches. a homerun, in over you network. as area. known system on it's growing And so and branch - of then

So that's so what's compelling. become

Scott, thanks Interesting, thanks team.

it. Got

you. Thank

you. Thank

of next with Andy with Baird. your comes Our the question from Wittman Please proceed question. line

Good Oh is everyone. what just good prepared these work reduction you a pretty has year-over-year for great, decline. in well. just there I that $XX to you it wanted of did wondering, the thanks your that was compare to a remarks order morning how taking started work that's ask your chunk orders. million were business, I guess my questions. noting expecting? on on I I wondering, margins implications actually was as Scott, obviously

- Obviously, work this But stabilizing. that I was previously thought orders down. have that been thought trending

would more is bit decline or is maybe - have this $XX So little million the thought? little this this a bit is more stabilized a down at than you

last that's so And almost back this I people work there's orders to year, out. think says. at we're a of there's in we're as but the at that's much stabilization. bit related regular We But a are normalization. call it, Yes is slowdown orders. good little QX a in kind some that general economic all what question Yes, work well. also no had well No, Like pulling pretty bit. Andy, - disinfection this climate in as almost

another we'll So then lapping one or a that. I then quarter, it on be more outlook. think done point depending we're and could from with And X.X down economic - possibly, disinfection the trickle point

wouldn't but So surprising that to be all us, levels. again above that still, pre-COVID

know where I run thanks guess adjusted million, million? I results? about don't segment that's, was it, million, than running next. we'd around corporate quarter, the you've Look, than the $XX $XX can I less cost prior talk $XX corporate we and previously The unallocated expense, got less been there expected this rate go - to the helpful.

a of stable. usually be that think big step something It's what pretty down should relatively I for sequentially

remainder maybe, this for the that the you So I Earl, was specifically could causes year. talk some - of the line what expect of for and wondering about in if you

for in been Thanks economic light question, cost have climate, of no. Yes, management. disciplined In Andy. we the the very,

in disciplined to that value-added are just cut they examples, minimum. headcounts all mandatory. and/or entertainment When unless we've not travel ensuring you open been headcounts, our at filling bare So been a to has give of we look we're and some very,

what's kind actually we last look lower quarter revenue, And disinfection of you if happened P&L of wages. so, our over in higher actually at light with still the in like have

on job an in a result is the overall in it a management. teams as still margins we year that not abated. increases doing last So very been our great profitability. covering impact cost of And And we've having the are although very, that, diligent saw and wage that, have

the Sorry, on right on you think second or based think number kind rate rest answer, but - know that what million the Is do to...? I for your you year. what I of part this $XX of of - the expect that don't there don't is what - question run

Yes, - P&L. going manage we're no yes to to continue the

might in You but seen. back million we've the actually an mark uptick not to see there, historically $XX that

Got it.

you range, when we Scott, this Scott, your heard little range? that the a does little side about bit bit, to on orders previously to end - expense, does all work together, interest bias higher put the does interest a one more care of given. When So it of Could here you expense you that, that? on comment the guidance commentary you or to you've turning range the think and

just definitely No look, at see good climate as We and than sticking about labor. Andy, the we after our really offset robust. pushing good we're so other out is managing has - range. But to feel price going bottom increases - to changed, nothing to line guidance again, it. - we're not It's it's the

bottom So and confident it about hit we're still the really going to doesn't it. end. bias me I range towards the good feel

okay. Good, guys. Thanks

Thanks.

Thank you.

you. Thank

Marc question. & Our with question proceed from of Company. with comes Riddick line next your the Please Sidoti

morning Hi, good everyone.

Marc. morning, Good

morning. Good

expectations was things, of I liked. first a the about recover your more there. aviation. pandemic. to as you full on talk are little start there, your to on going at It of kind what post out of consumer least. wanted I though folks touch the maybe certainly seems would have could you Was bit a could maybe flights But wondering forward follow-up? things are, than kind forward? if of I bit maybe what a traveling. leisure a one I are And side quick still little about bit travel then little talk Particularly, are have you going can So there the expectations maybe transfer And

at travel - We're if point, most normalized. from is the To kind will, look, we're your I side, think has Yes, aviation we the for of robust. usual, part, business demand sector as the right? like you think

quarter and for, would at - I like it's right, So two, or been say, that a least.

we feel it. good about So

strategy you've margin good of about of the in our a on We a since mix And seen focusing our airlines, tick of pre-COVID terms moving up terms result of airports feel in of business. versus that. pretty infrastructure as significant

to year. So, is the balance we of strong through the think going remain the aviation sector

just I And order was the question. Great. to something. shift of back curious to then about work sort

One quarter of at entire at we end of of New York literally been those with helpful January good the the a kind - have and pretty had - of no things correctly, January, country snowstorms that were remember where which, City your first through couple of end in snow end your I if the quarter, there could the times orders?

was net, any year? I over what you maybe is was a of saw net the wondering impact had or that kind which there that if - there any extent or to now

when a becomes insignificant. too, to revenue $X it probably standpoint. running an snowstorm like company, the kind from the wouldn't But it's I team Northeast, about the if of It's significant billion they talk you Yes, financial talk funny, not you guess.

Got you, thank very much. you

it. got You

Thank Please next Associates. line proceed from CL your Our [Operator with the David of question Instructions] you King comes Silver & question. with

you. would about your Yes, in question hi to good just morning, thank start trend with Education the segment. I like maybe a

you out in trend meaningful wins forward? thought So your you called going prepared be of growth that think during called some new terms - I remarks, would you out

value your pickup good maybe couple that possibilities? So ATS of out? recent kind a that this unusually of behind that drove of called some secondly, carry in the with but business proposition or questions, work tends the new what to then what characterize segment? drivers Education And trend Education you you it could be that maybe would So the type business are in

it's like Look, else. Yes. anything

we think past value-added new paid year just or the us. there's a just it's clients it's real of paying on and off, and so, I leadership have focus over account Education David. One, on there's for couple renewed things. a our dividends And

us bargaining right, at nonunion. is where look for have still part where they wage are on higher -- a operating if nonunion this of is environment agreement is is margins to growth, you almost all what than you an collective remember growth. it's because X.X% were in And because it's Our trending Education a the wage of And margin predicted labor of not pre-COVID. pressure kind

you you So a turnover, of more use wage higher have have lot higher overtime. growth,

of that investing tremendous just proud So And we're there's been in do discipline super area. opportunity. in in Education and been just Group. able what business We've we've the to we the people financial development think

fact, leadership, even new have on development the side. We in business

our -- been bigger is pipeline So it's ever and than before.

how yes, question I'm we're three it moved you to maybe proud super ago asked of the from is two was where or glad Education Group today. it we've where that because So years

So --

just about ATS to maybe from would helpful. follow-on flow work comment for Thank that a you. be then the potential And

-- right. and Solutions Group Technical Yes, The that's I think relationship the is Education our working the Group super relationship powerful. between

about business janitorial a power year And contract right? For cross-selling so presentation opportunities, to in included because new but it am we're even not last excited been to was bad the Because word, on I the value-add. the that's talking not have that's about clients we've Technical you, if only every Group the I has cross-sell. probably single tell Solutions a for

and say into energy to scope based an And clients we'll if if potential janitorial there's breadth your EV the way, there's charging contract potential. decisions the and presentation of here, So go on by on make a portfolio. them, or if efficiency

it's part So in the David, be but and our it of background book of now not it's services. may immediate,

going big it's to the So I future for us. be in think

is that on projects, closed work. high-profile new RavenVolt getting some be, sorry, microgrid like operating more delays, RavenVolt, more for is cancel suspend before extended Could more least business. don't whatnot. in has delays just to there there get identify that mean, the But good. I when you still bureaucratic I the don't Very I'd contract you can other a and of first in kind and to but the in can necessarily speed before did that, since at RavenVolt? a investment know, scan I maybe in the comment going business, of actually microgrids made to you kind from you a words, a the been call, there to utilities mean, lot you building indicates to when tend change this Thank period and things administrative you. maybe maybe shift when anticipated this you've Or or sign over time local up tasks that your you from on complete I Thanks. to -- environment? of I'm opportunity you the work? pushback a it as it Admittedly, to or when

There of a Yes, are couple unpack things to there. sure.

bought with First and I'll we're we RavenVolt by start of leadership them. and saying acquisition thrilled the ever day we've all, as the as from been the team

changed. of that places and country's microgrids power. the not grids, to that. the you're from seeing power so go going out not hearing a And EV much surprised in talk the demand much welcome We're I'm of the lot grid that's that that to put change electrical as chargers, all terms handle So and around is off there get a utilities pushback, the there's ability that's and about on be because to

energy bit about lot a issues say same is the of our there's utilities' in a as maybe same which a microgrids, if administrative which earlier. I'd seen that's kind out chain major anything little more there we some in And that. work. for using the But solutions bundled of There's supply change of there's headwind group So haven't a it's of equipment. the terms in like I microgrids, talked desire thing

it's that hold preordering. of and getting great a and we're now we're Granted, they're it stabilizing

that it backing It's again, really being proactive to about really and, off all about on doing to seem just story. performance. supply think second And And we handling on be be think stuff. it's chain. and a half supply But the we're not chain. good we I it's So going

going couple And things. Okay. and to be I'm of wondering -- by one Great. thinking this comments about would again, a I interest it's But I'm Fed yesterday's Chief. was then more of expense. just squeeze our

I First lock how view the about could most you in guess, would me the of treasury you thought Just portion in two or your or in, have using the think if you're variable debt? rate benefit know, to. base particular do the you. be the trying rate But off, you or current variable whatever. volatility -- rate be opportunity to interest tracking, the the is SOFR, remind how environment rates portion, or of variable in just year derivatives the you I most And don't then what about that borrowings sensitive the it Thank we particular should your to? on sensitive

would and fact, of locks our year, always active I as of the ramp-up locks. kind the mix we And in we for were say we're at thanks like David. rate looking debt. variable rate last in No, rates, and question, investing saw in fixed Yes. in very

We fixed, to at, like now just will put we're mix this XX% it perspective, floating. continue at And right time, absolutely. but actually it's so look in in to something point XX% we that about

of it point SOFR As debt, actually at far as based this time. our variable in is off

the session. and back Thank Ladies floor question-and-answer any concludes you. Salmirs final gentlemen, I'll for that turn Mr. our comments. to

update, can for And place you with we come all And you the we're an see, in there's about but ELEVATE. really energy in feel lot QX doing now. thanks in participating. we're And what excited a we'll here. excited investments and in of we're we're to about like -- good back our as a we're Well, future, enthusiasm

So thanks today. for participating

today's This conference. you. Thank concludes

you You participation. may disconnect your time. lines at for this your Thank