Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: The schools business is performing well, and the engineering segment seems strong. Why is the EBITDA growth target conservative? A: Kevin Miller, CFO: The revenue for Q3 and Q4 is largely set, as schools start in September. We are optimistic about the school year but prefer a conservative target due to potential variability. Predicting a 10% increase in EBITDA already assumes a significant sequential increase.
Q: Which segment do you expect to grow the fastest over the next 12 months? A: Bradley Vizi, Executive Chairman: It's challenging to predict short-term growth for each division due to various drivers. However, the platform's strength across all divisions provides confidence in our long-term success.
Q: What are your capital allocation priorities given the strong balance sheet? A: Bradley Vizi, Executive Chairman: We aim to remain flexible and opportunistic, balancing share buybacks and M&A opportunities. We focus on bolting on businesses that align with our culture and vision, particularly in engineering.
Q: Can you clarify the 54% increase in new hires? Is it specific to engineering? A: Bradley Vizi, Executive Chairman: The increase is specific to aerospace. Although aerospace was slower than expected in the first half, the pipeline is improving, and we are confident in future growth.
Q: What is driving the 6% increase in SG&A expenses, and how are you managing it? A: Kevin Miller, CFO: The increase is due to natural inflation, investments in technology and cybersecurity, and infrastructure to support growth, especially in healthcare. We continue to look for ways to optimize SG&A, including leveraging talent in the Philippines.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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